Document:

EX-10.1

 

EXHIBIT 10.1

 

CREDIT AGREEMENT

dated as of November 21, 2006

among

BALDWIN TECHNOLOGY COMPANY, INC.

MAINSEE 430. VV GMBH (TO BE RENAMED

“BALDWIN GERMANY HOLDING GMBH”)

BALDWIN GERMANY GMBH

and

OXY-DRY MASCHINEN GMBH

as Borrowers

THE VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO,

as Lenders,

and

LASALLE BANK NATIONAL ASSOCIATION,

as Administrative Agent

 

LASALLE BANK NATIONAL ASSOCIATION,

as Arranger

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	SECTION 1 DEFINITIONS
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Other Interpretive Provisions
	 	 	26	 
	1.3 Exchange Rate; Currency Equivalents
	 	 	26	 
	 
	 	 	 	 
	SECTION 2 COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES
	 	 	27	 
	2.1 Commitments
	 	 	27	 
	2.2 Loan Procedures
	 	 	29	 
	2.3 Letter of Credit Procedures
	 	 	31	 
	2.4 Commitments Several
	 	 	35	 
	2.5 Certain Conditions
	 	 	35	 
	 
	 	 	 	 
	SECTION 3 EVIDENCING OF LOANS
	 	 	36	 
	3.1 Notes
	 	 	36	 
	3.2 Recordkeeping
	 	 	36	 
	 
	 	 	 	 
	SECTION 4 INTEREST
	 	 	36	 
	4.1 Interest Rates
	 	 	36	 
	4.2 Interest Payment Dates
	 	 	37	 
	4.3 Setting and Notice of LIBOR Rates
	 	 	37	 
	4.4 Computation of Interest
	 	 	37	 
	4.5 Maximum Rate
	 	 	37	 
	 
	 	 	 	 
	SECTION 5 FEES
	 	 	38	 
	5.1 Non-Use Fees
	 	 	38	 
	5.2 Letter of Credit Fees
	 	 	38	 
	5.3 Administrative Agent’s Fees
	 	 	39	 
	 
	 	 	 	 
	SECTION 6 REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS
	 	 	39	 
	6.1 Reduction or Termination of the Revolving Commitments
	 	 	39	 
	6.2 Prepayments
	 	 	40	 
	6.3 Manner of Prepayments
	 	 	42	 
	6.4 Repayments
	 	 	42	 
	 
	 	 	 	 
	SECTION 7 MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES
	 	 	43	 
	7.1 Making of Payments
	 	 	43	 
	7.2 Application of Certain Payments
	 	 	43	 
	7.3 Due Date Extension
	 	 	44	 
	7.4 Setoff
	 	 	45	 
	7.5 Proration of Payments
	 	 	45	 
	7.6 Taxes
	 	 	45	 

 

 

	 	 	 	 	 
	SECTION 8 INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS
	 	 	47	 
	8.1 Increased Costs
	 	 	47	 
	8.2 Basis for Determining Interest Rate Inadequate or Unfair
	 	 	48	 
	8.3 Changes in Law Rendering LIBOR Loans Unlawful
	 	 	49	 
	8.4 Funding Losses
	 	 	49	 
	8.5 Right of Lenders to Fund through Other Offices
	 	 	50	 
	8.6 Discretion of Lenders as to Manner of Funding
	 	 	50	 
	8.7 Mitigation of Circumstances; Replacement of Lenders
	 	 	50	 
	8.8 Conclusiveness of Statements; Survival of Provisions
	 	 	51	 
	 
	 	 	 	 
	SECTION 9 REPRESENTATIONS AND WARRANTIES
	 	 	51	 
	9.1 Organization
	 	 	51	 
	9.2 Authorization; No Conflict
	 	 	51	 
	9.3 Validity and Binding Nature
	 	 	52	 
	9.4 Financial Condition
	 	 	52	 
	9.5 No Material Adverse Change
	 	 	52	 
	9.6 Litigation and Contingent Liabilities
	 	 	53	 
	9.7 Ownership of Properties; Liens
	 	 	53	 
	9.8 Equity Ownership; Subsidiaries
	 	 	53	 
	9.9 Pension Plans
	 	 	53	 
	9.10 Investment Company Act
	 	 	55	 
	9.11 [Reserved]
	 	 	55	 
	9.12 Regulation U
	 	 	55	 
	9.13 Taxes
	 	 	55	 
	9.14 Solvency, etc.
	 	 	55	 
	9.15 Environmental Matters
	 	 	56	 
	9.16 Insurance
	 	 	56	 
	9.17 Real Property
	 	 	56	 
	9.18 Information
	 	 	57	 
	9.19 Intellectual Property
	 	 	57	 
	9.20 Burdensome Obligations; No Default; Compliance with Laws
	 	 	57	 
	9.21 Labor Matters
	 	 	57	 
	9.22 No Default
	 	 	58	 
	9.23 Related Agreements; Post-Closing Structural Steps; etc
	 	 	58	 
	9.24 Broker’s Fees, etc.
	 	 	58	 
	9.25 Foreign Asset Control Regulations, etc.
	 	 	59	 
	9.26 Certain Rabbi Trust Payments
	 	 	59	 
	9.27 Distributions, etc.
	 	 	59	 
	 
	 	 	 	 
	SECTION 10 AFFIRMATIVE COVENANTS
	 	 	59	 
	10.1 Reports, Certificates and Other Information
	 	 	59	 
	10.2 Books, Records and Inspections
	 	 	62	 
	10.3 Maintenance of Property; Insurance
	 	 	62	 
	10.4 Compliance with Laws; Payment of Taxes and Liabilities
	 	 	63	 
	10.5 Maintenance of Existence, etc.
	 	 	64	 
	10.6 Use of Proceeds
	 	 	64	 

ii

 

	 	 	 	 	 
	10.7 Employee Benefit Plans
	 	 	65	 
	10.8 Environmental Matters
	 	 	65	 
	10.9 Further Assurances
	 	 	66	 
	10.10 Certain Deposit Accounts
	 	 	66	 
	10.11 Interest Rate Protection
	 	 	66	 
	10.12 Organschaft
	 	 	66	 
	10.13 Delivery of German Pledge Agreements and Netherlands Pledge Agreements
	 	 	66	 
	10.14 Change of Name
	 	 	67	 
	 
	 	 	 	 
	SECTION 11 NEGATIVE COVENANTS
	 	 	67	 
	11.1 Debt
	 	 	67	 
	11.2 Liens
	 	 	69	 
	11.3 [Reserved]
	 	 	70	 
	11.4 Restricted Payments
	 	 	70	 
	11.5 Mergers, Consolidations, Sales
	 	 	70	 
	11.6 Modification of Organizational Documents
	 	 	72	 
	11.7 Transactions with Affiliates
	 	 	72	 
	11.8 [Intentionally Omitted]
	 	 	73	 
	11.9
Inconsistent Agreements, etc.
	 	 	73	 
	11.10 Business Activities; Issuance of Equity
	 	 	73	 
	11.11 Investments
	 	 	74	 
	11.12 Restriction of Amendments to Certain Documents
	 	 	75	 
	11.13 Fiscal Year
	 	 	75	 
	11.14 Financial Covenants
	 	 	75	 
	11.15 Cancellation of Debt
	 	 	76	 
	11.16 Holding Company Activities
	 	 	76	 
	11.17 Payments on the Rabbi Trust
	 	 	76	 
	 
	 	 	 	 
	SECTION 12 EFFECTIVENESS; CONDITIONS OF LENDING, ETC
	 	 	76	 
	12.1 Bridge Loan
	 	 	76	 
	12.2 Conditions
	 	 	80	 
	12.3 Additional Conditions to Term Loans, Initial German Revolving Loan, and the Initial Parent Revolving Loans
	 	 	80	 
	12.4 Additional Conditions to Issuance of Letters of Credit
	 	 	81	 
	 
	 	 	 	 
	SECTION 13 EVENTS OF DEFAULT AND THEIR EFFECT
	 	 	82	 
	13.1 Events of Default
	 	 	82	 
	13.2 Effect of Event of Default
	 	 	84	 
	 
	 	 	 	 
	SECTION 14 THE AGENT
	 	 	85	 
	14.1 Appointment and Authorization
	 	 	85	 
	14.2 Issuing Lender
	 	 	85	 
	14.3 Delegation of Duties
	 	 	85	 
	14.4 Exculpation of Administrative Agent
	 	 	85	 
	14.5 Reliance by Administrative Agent
	 	 	86	 
	14.6 Notice of Default
	 	 	86	 

iii

 

	 	 	 	 	 
	14.7 Credit Decision
	 	 	87	 
	14.8 Indemnification
	 	 	87	 
	14.9 Administrative Agent in Individual Capacity
	 	 	88	 
	14.10 Successor Administrative Agent
	 	 	88	 
	14.11 Collateral Matters
	 	 	88	 
	14.12 Administrative Agent as German law security agent (Sicherheitentreuhänder)
	 	 	89	 
	14.13 Administrative Agent May File Proofs of Claim
	 	 	89	 
	14.14 Other Agents; Arrangers and Managers
	 	 	90	 
	 
	 	 	 	 
	SECTION 15 GENERAL
	 	 	90	 
	15.1 Waiver; Amendments
	 	 	90	 
	15.2 Confirmations
	 	 	91	 
	15.3 Notices
	 	 	91	 
	15.4 Computations
	 	 	91	 
	15.5 Costs, Expenses and Taxes
	 	 	92	 
	15.6 Assignments; Participations
	 	 	92	 
	15.7 Register
	 	 	94	 
	15.8 Governing Law
	 	 	94	 
	15.9 Confidentiality
	 	 	94	 
	15.10 Severability
	 	 	95	 
	15.11 Nature of Remedies
	 	 	95	 
	15.12 Entire Agreement
	 	 	95	 
	15.13 Counterparts
	 	 	95	 
	15.14 Successors and Assigns
	 	 	95	 
	15.15 Captions
	 	 	96	 
	15.16 Customer Identification — USA Patriot Act Notice
	 	 	96	 
	15.17 Indemnification by the Borrowers
	 	 	96	 
	15.18 Nonliability of Lenders
	 	 	97	 
	15.19 Forum Selection and Consent to Jurisdiction
	 	 	98	 
	15.20 Waiver of Jury Trial
	 	 	98	 
	15.21 Certain Liabilities; Oxy-Dry GmbH as a Party
	 	 	98	 
	15.22 Judgment Currency
	 	 	99	 

iv

 

ANNEXES

	 	 	 
	ANNEX A

	 	Lenders and Commitments and Pro Rata Shares
	ANNEX B

	 	Addresses for Notices

SCHEDULES

	 	 	 
	SCHEDULE 1.1A

	 	Non-Material Subsidiaries
	SCHEDULE 1.1B

	 	Post-Closing Structural Steps
	SCHEDULE 9.6

	 	Litigation and Contingent Liabilities
	SCHEDULE 9.8

	 	Equity Ownership; Subsidiaries
	SCHEDULE 9.15

	 	Environmental Matters
	SCHEDULE 9.16

	 	Insurance
	SCHEDULE 9.17

	 	Real Property
	SCHEDULE 9.21

	 	Labor Matters
	SCHEDULE 11.1

	 	Existing Debt
	SCHEDULE 11.2

	 	Existing Liens
	SCHEDULE 11.11

	 	Investments
	SCHEDULE 12.1

	 	Debt to be Repaid

EXHIBITS

	 	 	 
	EXHIBIT A-1

	 	Form of Bridge Loan Note (Section 3.1)
	EXHIBIT A-2

	 	Form of Permanent Loans Note
	EXHIBIT B

	 	Form of Compliance Certificate (Section 10.1.3)
	EXHIBIT C

	 	[Reserved]
	EXHIBIT D

	 	Form of Assignment Agreement (Section 15.6.1)
	EXHIBIT E

	 	Form of Notice of Borrowing (Section 2.2.2)
	EXHIBIT F

	 	Form of Notice of Conversion/Continuation (Section 2.2.3)

 

 

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT dated as of November 21, 2006 (this “Agreement”) is entered
into among BALDWIN TECHNOLOGY COMPANY, INC., a Delaware corporation (“Parent”), MAINSEE
430. VV GMBH (TO BE RENAMED “BALDWIN GERMANY HOLDING GMBH”), a German company (“Newco”),
BALDWIN GERMANY GMBH, a German company (“BGG”), and OXY-DRY MASCHINEN GMBH, a German
company (“Oxy-Dry GmbH”; each of BGG and Oxy-Dry GmbH are sometimes individually referred
to below as a “German Opco” and sometimes collectively referred to below as the “German
Opcos”; the German Opcos and Newco are sometimes individually referred to below as a “German
Borrower” and sometimes collectively referred to below as the “German Borrowers”; the
Parent, Newco, BGG and Oxy-Dry GmbH are sometimes individually referred to below as a
“Borrower” and sometimes collectively referred to below as the “Borrowers”), the
Lenders (as defined below), and LASALLE BANK NATIONAL ASSOCIATION (in its individual capacity,
“LaSalle”), as administrative agent for the Lenders.

The Bridge Lender (as defined below) has agreed to make available a bridge loan to the Parent in
the amount of $35 million, and the Permanent Lenders have agreed to make available to (i) Newco a
$15 million term loan, (ii) the Parent a $20 million revolving credit facility and (iii) Newco and
the German Opcos a $15 million revolving credit facility, in each case upon the terms and
conditions set forth herein. The Issuing Lender (as defined below) has agreed to make available
letters of credit upon the terms and conditions set forth below.

     In consideration of the mutual agreements herein contained, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto
agree as follows:

     SECTION 1 DEFINITIONS.

     1.1 Definitions. When used herein the following terms shall have the following meanings:

     Account Debtor is defined in the Guaranty and Collateral Agreement.

     Account or Accounts is defined in the UCC.

     Acquisition means any transaction or series of related transactions for the purpose of
or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the
assets of a Person, or of all or substantially all of any business or division of a Person, (b) the
acquisition of in excess of 50% of the Capital Securities of any Person, or otherwise causing any
Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with
another Person (other than a Person that is already a Subsidiary).

 

 

     Administrative Agent means LaSalle in its capacity as administrative agent for the
Lenders hereunder and any successor thereto in such capacity.

     Affected Loan — see Section 8.3.

     Affiliate of any Person means (a) any other Person which, directly or indirectly,
controls or is controlled by or is under common control with such Person, (b) any officer or
director of such Person and (c) with respect to any Lender, any entity (whether a fund or
otherwise) administered or managed by such Lender or an Affiliate or investment advisor thereof and
which is engaged in making, purchasing, holding or otherwise investing in commercial loans. A
Person shall be deemed to be “controlled by” any other Person if such Person possesses, directly or
indirectly, power to vote 15% or more of the securities (on a fully diluted basis) having ordinary
voting power for the election of directors or managers or power to direct or cause the direction of
the management and policies of such Person whether by contract or otherwise. Unless expressly
stated otherwise herein, neither the Administrative Agent nor any Lender shall be deemed an
Affiliate of any Loan Party.

     Agent Fee Letter means the Fee letter dated as of October 3, 2006 between the Parent
and LaSalle Bank National Association as modified by the Agent Fee Letter Modification Agreement,
dated as of November 21, 2006 and as may be further modified from time to time.

     Agreement — see the Preamble.

     Applicable Margin means, for any day, the rate per annum set forth below opposite the
level (the “Level”) then in effect, it being understood that the Applicable Margin for (i)
LIBOR Loans shall be the percentage set forth under the column “LIBOR Margin”, (ii) Base Rate Loans
shall be the percentage set forth under the column “Base Rate Margin”, (iii) the Non-Use Fee Rate
shall be the percentage set forth under the column “Non-Use Fee Rate” and (iv) the L/C Fee shall be
the percentage set forth under the column “L/C Fee Rate”:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Total Debt	 	LIBOR	 	Base Rate	 	Non-Use	 	L/C Fee
	Level	 	to EBITDA Ratio]	 	Margin	 	Margin	 	Fee Rate	 	Rate
	I	 	Greater than 3.00:1
	 	 	2.50	%	 	 	1.00	%	 	 	0.500	%	 	 	2.50	%
	II	 	Greater than 2.50:1 but
less than or equal to
3.00:1
	 	 	2.25	%	 	 	0.75	%	 	 	0.500	%	 	 	2.25	%
	III	 	Greater than 2.00:1 but
less than or equal to
2.50:1
	 	 	2.00	%	 	 	0.50	%	 	 	0.375	%	 	 	2.00	%
	IV	 	Less than or equal to 2.00:1
	 	 	1.75	%	 	 	0.25	%	 	 	0.375	%	 	 	1.75	%

     The LIBOR Margin, the Base Rate Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be
adjusted, to the extent applicable, on the fifth (5th) Business Day after the Parent provides or is
required to provide the quarterly financial statements and other information pursuant to
Section 10.1.2 and the related Compliance Certificate pursuant to Section 10.1.3.
Notwithstanding anything contained in this paragraph to the contrary, (a) if the Parent fails to
deliver the applicable quarterly financial statements and Compliance Certificate in accordance

2

 

with the provisions of Sections 10.1.2 and 10.1.3, the LIBOR Margin, the Base Rate
Margin, the Non-Use Fee Rate and the L/C Fee Rate shall be based upon Level I above beginning on
the date such financial statements and Compliance Certificate were required to be delivered until
the fifth (5th) Business Day after such financial statements and Compliance Certificate are
actually delivered, whereupon the Applicable Margin shall be determined by the then current Level;
(b) no reduction to any Applicable Margin shall become effective at any time when an Event of
Default or Unmatured Event of Default has occurred and is continuing; (c) the initial Applicable
Margin on the Closing Date shall be based on Level II until the date on which the financial
statements (pursuant to Section 10.1.2) and related Compliance Certificate (pursuant to
Section 10.1.3) are required to be delivered for the Fiscal Quarter ending December 31,
2006; (d) in the event that the annual audited financial statements delivered pursuant to
Section 10.1.1 for an applicable Fiscal Year (and the related Compliance Certificate
delivered pursuant to Section 10.1.3) show that the Level (as set by the quarterly
financial statements delivered pursuant to Section 10.1.2 (and the related Compliance
Certificate delivered pursuant to Section 10.1.3) for such Fiscal Year) was incorrectly set
at too low a Level (for example, it was set at Level II when the audited financial statements show
that it should have been set at Level III), then, as of the fifth Business Day after such annual
financial statements (and related Compliance Certificate) are delivered, the correct Level and
related correct Applicable Margin shall be used (until the Level and Applicable Margin is next
changed pursuant to the above provisions) but any interest or fees that have accrued (or been paid)
up until such fifth Business Day shall not be affected; and (e) in the event that the annual
audited financial statements delivered pursuant to Section 10.1.1 for the applicable Fiscal
Year (and the related Compliance Certificate delivered pursuant to Section 10.1.3) show
that the Level (as set by the quarterly financial statement delivered pursuant to Section
10.1.2 (and the related Compliance Certificate delivered pursuant to Section 10.1.3)
for such Fiscal Year) was incorrectly set at too high a Level (for example, it was set at Level III
when the audited financial statements show that it should have been set at Level II), then
retroactive to the date the Level (and related Applicable Margin) was incorrectly set, the correct
Level (and related Applicable Margin) shall be deemed effective and the applicable Borrower shall
pay any related increased interest or fees as a result of such correction.

     Asset Disposition means the sale, lease, assignment or other transfer for value (each,
a “Disposition”) by any Loan Party to any Person (other than a Loan Party) of any asset or
right of such Loan Party (and also including, the loss, destruction or damage of any thereof or any
actual or threatened (in writing to any Loan Party) condemnation, confiscation, requisition,
seizure or taking thereof) other than (a) the Disposition of any asset which is to be replaced, and
is in fact replaced, within 180 days with another asset performing the same or a similar function
(provided, that if an Event of Default then exists, the Administrative Agent may require that an
amount equal to the related Net Cash Proceeds be applied to the payment or prepayment of the
Obligations whether or not the applicable Loan Party intends to so replace), (b) the sale or lease
of inventory in the ordinary course of business, (c) liquidations of any Cash Equivalent
Investments in the ordinary course of business, (d) dispositions by any Japanese Subsidiary of any
note (payable to such Japanese Subsidiary) in the ordinary course of business, or (e) liquidation
of any pension plan or insurance asset in the ordinary course of business.

     Assignee — see Section 15.6.1.

3

 

     Assignment Agreement — see Section 15.6.1.

     Attorney Costs means, with respect to any Person, all reasonable fees and
disbursements of any counsel to such Person, the reasonable allocable cost of internal legal
services of such Person, all reasonable disbursements of such internal counsel and all court costs.

     Bank Product Agreements means those certain cash management service agreements entered
into from time to time between any Loan Party and a Lender or its Affiliates in connection with any
of the Bank Products.

     Bank Product Obligations means all obligations, liabilities, contingent reimbursement
obligations, fees, and expenses owing by any of the Loan Parties to any Lender or its Affiliates
pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment
of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, and including all such amounts that a Loan Party is obligated to reimburse to
the Administrative Agent or any Lender as a result of the Administrative Agent or such Lender
purchasing participations or executing indemnities or reimbursement obligations with respect to the
Bank Products provided to the Loan Parties pursuant to the Bank Product Agreements.

     Bank Products means any service or facility extended to any Loan Party by any Lender
or its Affiliates including: (a) credit cards, (b) credit card processing services, (c) debit
cards, (d) purchase cards, (e) ACH transactions, (f) cash management, including controlled
disbursement, accounts or services, or (g) Hedging Agreements.

     Base Rate means at any time the greater of (a) the Federal Funds Rate plus 0.5% and
(b) the Prime Rate.

     Base Rate Loan means any Loan which bears interest at or by reference to the Base
Rate.

     Base Rate Margin — see the definition of Applicable Margin.

     BEC BV means Baldwin Europe Consolidated B.V., a private company with limited
liability incorporated under the laws of The Netherlands.

     BEC Inc. means Baldwin Europe Consolidated Inc., a Delaware corporation.

     BGG — See the Preamble.

     BGG German Revolving Outstandings means the sum of (a) the aggregate principal amount
of all outstanding German Revolving Loans borrowed by BGG and (b) the German Stated Amounts with
respect to Letters of Credit requested by BGG.

     Borrower and Borrowers — see the Preamble.

     Bridge Lender means LaSalle in its capacity as lender of the Bridge Loan, and its
successors and assigns (if any).

4

 

     Bridge Loan means a $35 million term loan made by the Bridge Lender to the Parent.
The Bridge Loan shall be made in Dollars.

     Bridge Loan Commitment means, with respect to the Bridge Lender, the commitment of the
Bridge Lender to make the Bridge Loan. The amount (in Dollars) of the Bridge Loan Commitment is
set forth in Annex A hereto.

     “Bridge Loan Note” — see Section 3.1.

     BSA — see Section 10.4.

     Business Day means any day on which LaSalle is open for commercial banking business in
Chicago, Illinois or New York, New York but excluding, in the case of a Business Day which relates
to a LIBOR Loan, any day on which dealings deposits for Dollars or Euros, as the case may be, are
carried on in the London interbank market and also excluding, in the case of a LIBOR Loan in Euros,
any day which is not a Target Date.

     Capital Expenditures means for any fiscal period, with respect to any Person, all
expenditures which, in accordance with GAAP, would be required to be capitalized and shown on the
consolidated balance sheet of the Parent, including expenditures in respect of Capital Leases, but
excluding expenditures made in connection with the replacement, substitution or restoration of
assets to the extent financed (a) from insurance proceeds (or other similar recoveries) paid on
account of the loss of or damage to the assets being replaced or restored or (b) with awards of
compensation arising from the taking by eminent domain or condemnation of the assets being
replaced.

     Capital Lease means, with respect to any Person, any lease of (or other agreement
conveying the right to use) any real or personal property by such Person that, in conformity with
GAAP, is accounted for as a capital lease on the balance sheet of such Person.

     Capital Securities means, with respect to any Person, all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such
Person’s capital, whether now outstanding or issued or acquired after the Closing Date, including
common shares, preferred shares, membership interests in a limited liability company, limited or
general partnership interests in a partnership, interests in a Trust, interests in other
unincorporated organizations or any other equivalent of such ownership interest.

     Cash Collateralize means to deliver (by the Parent (in the case of Parent Letters of
Credit) or by the applicable German Opco (in the case of German Letters of Credit requested by such
applicable German Opco)) cash collateral to the Administrative Agent, to be held as cash collateral
for outstanding Letters of Credit, pursuant to documentation satisfactory to the Administrative
Agent. Derivatives of such term have corresponding meanings.

     Cash Equivalent Investment means (i) Dollars, Euros, pounds sterling and, in the case
of any of the Foreign Subsidiaries, such local currencies held by them from time to time in the
ordinary course of their businesses, (ii) securities issued or directly fully guaranteed or insured
by the governments of the United States, the United Kingdom, Sweden, Switzerland, Japan,

5

 

Canada and members of the European Union or any agency or instrumentality thereof (provided
that the full faith and credit of the respective such government is pledged in support thereof)
having maturities of not more than six months from the date of acquisition, (iii) securities issued
by any state of the United States or any political subdivision of any such state or any public
instrumentality thereof maturing within six months from the date of acquisition thereof and, at the
time of acquisition, having one of the two highest ratings obtainable from either S&P or Moody’s,
(iv) certificates of deposit and eurodollar time deposits with maturities of six months or less
from the date of acquisition, bankers’ acceptances with maturities not exceeding six months and
overnight bank deposits, in each case with any domestic commercial bank or commercial bank of a
foreign country recognized by the United States, (x) in the case of a domestic commercial bank,
having capital and surplus in excess of $500,000,000 and outstanding debt which is rated “A” (or
similar equivalent thereof) or higher by at least one nationally recognized statistical rating
organization (as defined under Rule 436 under the Securities Act) and (y) in the case of a foreign
commercial bank, having capital and surplus in excess of $250,000,000 (or the foreign currency
equivalent thereof), (v) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (ii) and (iv) above entered into with any
financial institution meeting the qualifications specified in clause (iv) above, (vi) commercial
paper having a rating of at least A-1 from S&P or at least P-1 from Moody’s and in each case
maturing within six months after the date of acquisition and (vii) investments in money market
funds which invest substantially all their assets. For purposes of this definition,
Moody’s shall mean Moody’s Investors Service, Inc. and S&P shall mean Standard &
Poor’s Ratings Services, a division of McGraw Hill, Inc.

     Change of Control means the occurrence of any of the following events subsequent to
the Closing Date: (a) any Person or group of Persons (within the meaning of Section 13 or
14 of the Securities Exchange Act of 1934, but excluding any Specified Person (as defined
below)) shall acquire beneficial ownership (within the meaning of Rule 13d-3 promulgated under such
Act) of Capital Securities of the Parent representing more than 35% (or, if greater, the percentage
owned by the Specified Persons) of the combined voting power of all outstanding Capital Securities
(on a fully diluted basis and taking into account any securities or contract rights exercisable,
exchangeable or convertible into equity securities) of the Parent having voting rights in the
election of directors under normal circumstances; (b) the Parent shall cease to, directly or
indirectly, own and control 100% (90% in the case of its ownership of Baldwin Globaltec Ltd. and
80% in the case of its ownership of Baldwin India Private, Ltd.) of each class of the outstanding
Capital Securities of each Borrower and each other Subsidiary; (c) a majority of the members of the
Board of Directors of the Parent shall cease to be Continuing Members or (d) any Change of Control
as defined in the Rabbi Trust Agreement. For purposes of the foregoing, “Continuing
Member” means a member of the Board of Directors of the Parent who either (i) was a member of
the Parent’s Board of Directors on the day before the Closing Date and has been such continuously
thereafter or (ii) became a member of such Board of Directors after the day before the Closing Date
and whose election or nomination for election was approved by a vote of the majority of the
Continuing Members then members of the Parent’s Board of Directors or members elected by such
Continuing Members; and “Specified Person” means each of Mr. Mark T. Becker, Mr. Rolf
Bergstrom, Mr. Samuel B. Fortenbaugh III, Mr. Akira Hara, Ms.

6

 

Judith A. Mulholland, Mr. Gerald A. Nathe, Mr. Karl S. Puehringer, Mr. Ronald B. Salvagio, Mr.
Vijay C. Tharani, Mr. Frederick Westlake and Mr. Ralph R. Whitney, Jr..

     Closing Date — see Section 12.1.

     Code means the Internal Revenue Code of 1986, as amended.

     Collateral — means all “Collateral” as defined in the Guaranty and Collateral
Agreement and shall also include any additional collateral granted pursuant to any other Collateral
Document.

     Collateral Access Agreement means an agreement in form and substance reasonably
satisfactory to the Administrative Agent pursuant to which a mortgagee or lessor of real property
on which Collateral is stored or otherwise located, or a warehouseman, processor or other bailee of
Inventory or other property owned by any Loan Party, acknowledges the Liens of the Administrative
Agent and waives (or subordinates in a manner reasonably acceptable to the Administrative Agent)
any Liens held by such Person on such property, and, in the case of any such agreement with a
mortgagee or lessor, permits the Administrative Agent reasonable access to and use of such real
property following the occurrence and during the continuance of an Event of Default to assemble,
complete and sell any Collateral stored or otherwise located thereon.

     Collateral Documents means, collectively, the Guaranty and Collateral Agreement, each
Mortgage (if any), each Collateral Access Agreement, the Foreign Pledge Agreements, each control
agreement and any other agreement or instrument pursuant to which the Parent, any Subsidiary or any
other Person grants or purports to grant collateral to the Administrative Agent for the benefit of
the Lenders or otherwise relates to such collateral.

     Commitment means, as to any Lender, such Lender’s commitment to make Loans, and to
issue or participate in Letters of Credit, under this Agreement. A Commitment shall be a Bridge
Loan Commitment, Parent Revolving Commitment, German Revolving Commitment, or a Term Loan
Commitment, as the case may be. The initial amount of each Lender’s commitment to make Loans is
set forth on Annex A. The applicable Commitment(s) of the applicable assigning and
assignee Lender shall be adjusted to give effect to any assignments of such Commitment pursuant to
Section 15.6.1. The applicable Revolving Commitments may be reduced pursuant to
Section 6.

     Compliance Certificate means a Compliance Certificate in substantially the form of
Exhibit B.

     Computation Period means each period of four consecutive Fiscal Quarters ending on the
last day of a Fiscal Quarter.

     Consolidated Net Income means, with respect to the Parent and its Subsidiaries for any
period, the net income (or loss) of the Parent and its Subsidiaries for such period,
excluding any extraordinary items.

7

 

     Contingent Liability means, with respect to any Person, each obligation and liability
of such Person and all such obligations and liabilities of such Person incurred pursuant to any
agreement, undertaking or arrangement by which such Person: (a) guarantees, endorses or otherwise
becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise,
to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise
to assure a creditor against loss) the indebtedness, dividend, obligation or other liability of any
other Person in any manner (other than by endorsement of instruments in the course of collection),
including any indebtedness, dividend or other obligation which may be issued or incurred at some
future time; (b) guarantees the payment of dividends or other distributions upon the Capital
Securities of any other Person; (c) undertakes or agrees (whether contingently or otherwise): (i)
to purchase, repurchase, or otherwise acquire any indebtedness, obligation or liability of any
other Person or any property or assets constituting security therefor, (ii) to advance or provide
funds for the payment or discharge of any indebtedness, obligation or liability of any other Person
(whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or
to maintain solvency, assets, level of income, working capital or other financial condition of any
other Person, or (iii) to make payment to any other Person other than for value received; (d)
agrees to lease property or to purchase securities, property or services from such other Person
with the purpose or intent of assuring the owner of such indebtedness or obligation of the ability
of such other Person to make payment of the indebtedness or obligation; (e) to induce the
issuance of, or in connection with the issuance of, any letter of credit for the benefit of such
other Person; or (f) undertakes or agrees otherwise to assure a creditor against loss. The amount
of any Contingent Liability shall (subject to any limitation set forth herein) be deemed to be the
outstanding principal amount (or maximum permitted principal amount, if larger) of the
indebtedness, obligation or other liability guaranteed or supported thereby.

     Controlled Group means all members of a controlled group under common control with the
Parent or any of its Subsidiaries as described in Section 4001 of ERISA.

     Debt of any Person means, without duplication, (a) all obligations of such Person for
borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar
instruments, (c) all obligations of such Person as lessee under Capital Leases which have been or
should be recorded as liabilities on a balance sheet of such Person in accordance with GAAP and all
so-called “synthetic leases”, (d) all obligations of such Person to pay the deferred purchase price
of property or services (excluding trade accounts payable in the ordinary course of business and
obligations with respect to customer deposits accepted in the ordinary course of business, and also
excluding notes payable issued by any Japanese Subsidiary in the ordinary course of business
provided, that, the obligations evidenced by such notes represent (in essence) trade payables
incurred in the ordinary course of business), (e) all indebtedness secured by a Lien on the
property of such Person, whether or not such indebtedness shall have been assumed by such Person;
provided that if such Person has not assumed or otherwise become liable for such
indebtedness, such indebtedness shall be measured at the fair market value of such property
securing such indebtedness at the time of determination, (f) the outstanding principal amount of
all obligations, contingent or otherwise, with respect to all letters of credit (whether or not
drawn), bankers’ acceptances, and bankers’ guarantees, and similar obligations issued for the
account of such Person (including the Letters of Credit), (g) all Hedging Obligations of such
Person, (h) all Contingent Liabilities of such Person, (i) all Off-Balance Sheet Liabilities, (j)
all

8

 

Debt of any partnership of which such Person is a general partner and other Debt of other
entities to the extent that such Person is liable therefore as a result of such Person’s ownership
interest in or other relationship with such entity (except to the extent that the terms of such
Indebtedness provide that such Person is not liable therefore and such terms are enforceable under
applicable law) and (k) any Capital Securities or other equity instrument, whether or not
mandatorily redeemable, that under GAAP is characterized as debt, whether pursuant to financial
accounting standards board issuance No. 150 or otherwise.

     Debt to be Repaid means Debt listed on Schedule 12.1.

     Designated Proceeds — see Section 6.2.2(a).

     Dollar and the sign “$” mean lawful money of the United States of America.

     Dollar Equivalent means, at any time, (a) with respect to any amount denominated in
Dollars, such amount, (b) with respect to any amount (relating to any Loan or Letter of Credit)
denominated in Euros, the equivalent amount thereof in Dollars as determined by the Administrative
Agent or the Issuing Lender, as the case may be, at such time on the basis of the Spot Rate
(determined in respect of the most recent Revaluation Date) for the purchase of Dollars with Euros,
and (c) with respect to any amount denominated in Euros (to the extent not relating to the Loans or
Letters of Credit) or other currency except Dollars, the equivalent amount thereof in Dollars as
determined by the Administrative Agent at the applicable time on the basis of the Spot Rate as of
such time, for the purchase of Dollars with Euros or such other currency as the case may be.

     Domestic Operating Subsidiary means any Domestic Subsidiary that is not a Holding
Company.

     Domestic Subsidiary means any Subsidiary of the Parent that is incorporated or
organized under the laws of any State of the United States or the District of Columbia.

     EBITDA means, for any period, Consolidated Net Income for such period plus
(without duplication), to the extent deducted in determining such Consolidated Net Income in such
period, Interest Expense, income tax expense, franchise tax expense (to the extent in lieu of
income tax expense), depreciation and amortization, and the Specified Integration and Restructuring
Expenses for such period; provided, that, if any portion of the Computation Period consists of a
Pre-Closing Period, EBITDA for the Pre-Closing Period shall be the EBITDA of the Parent and its
Subsidiaries in the Pre-Closing Period excluding, for the avoidance of doubt, the EBITDA of MTC and
its subsidiaries in the Pre-Closing Period.

     EMU shall mean Economic and Monetary Union as contemplated in the Treaty on European
Union.

     EMU Legislation shall mean legislative measures of the European Council (including
without limitation European Council regulations) for the introduction of, changeover to or

9

 

operation of a single or unified European currency (whether known as the Euro or otherwise),
being in part the implementation of the third stage of EMU.

     Environmental Claims means all claims, however asserted, by any governmental,
regulatory or judicial authority or other Person alleging potential liability or responsibility for
violation of any Environmental Law, or for release or injury to the environment.

     Environmental Laws means all present or future applicable United States of America
federal, state, local and foreign laws, statutes, common law duties, rules, regulations, ordinances
and codes, together with all binding administrative or judicial orders, consent agreements,
licenses, authorizations and permits of, and binding agreements with, any governmental authority,
in each case relating to any matter arising out of or relating to public health and safety, or
pollution or protection of the environment or workplace, including any of the foregoing relating to
the presence, use, production, generation, handling, transport, treatment, storage, disposal,
distribution, discharge, emission, release, threatened release, control or cleanup of any Hazardous
Substance or the protection of, and/or prevention of harm or damage to, living organisms including
ecological systems and air, water and land.

     Environmental Licenses — see Section 9.15.

     ERISA means the United States Employee Retirement Income Security Act of 1974, as
amended.

     Euro and the sign € means the single currency of Participating Member
States of the European Union.

     Euro Currency Equivalent means, at any time, with respect to any amount denominated in
Dollars, the equivalent amount thereof in Euros as determined by the Administrative Agent or the
Issuing Lender, as the case may be, at such time on the basis of the Spot Rate (determined in
respect of the most recent Revaluation Date) for the purchase of Euros with Dollars.

     Event of Default means any of the events described in Section 13.1.

     Excluded Taxes means taxes based upon, or measured by, the Lender’s or Administrative
Agent’s (or a branch of the Lender’s or Administrative Agent’s) overall net income, overall net
receipts, or overall net profits (including franchise taxes imposed in lieu of such taxes and
branch profits or similar taxes), but only to the extent such taxes are imposed by a taxing
authority (a) in a jurisdiction in which such Lender or Administrative Agent is organized, (b) in a
jurisdiction which the Lender’s or Administrative Agent’s principal office is located, or (c) in a
jurisdiction in which such Lender’s or Administrative Agent’s lending office (or branch) in respect
of which payments under this Agreement are made is located.

     Federal Funds Rate means, for any day, a fluctuating interest rate equal for each day
during such period to the weighted average of the rates on overnight Federal funds transactions
with members of the Federal Reserve System arranged by Federal funds brokers, as published for such
day (or, if such day is not a Business Day, for the next preceding Business Day) by the

10

 

Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a
Business Day, the average of the quotations for such day on such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing selected by the
Administrative Agent. The Administrative Agent’s determination of such rate shall be binding and
conclusive absent manifest error.

     Fiscal Quarter means a fiscal quarter of a Fiscal Year.

     Fiscal Year means the fiscal year of the Parent and its Subsidiaries, which period
shall be the 12-month period ending on June 30th of each year. References to a Fiscal
Year with a number corresponding to any calendar year (e.g., “Fiscal Year 2006”) refer to
the Fiscal Year ending on June 30th of such calendar year.

     Fixed Charge Coverage Ratio means, for any Computation Period, the ratio of (a) the
total for such Computation Period of EBITDA minus the sum of (i) income taxes (and
franchise taxes in lieu of income taxes) paid, or required to be paid, in cash by the Parent and
its Subsidiaries in such Period plus (ii) all Capital Expenditures of the Parent and its
Subsidiaries for such Period to the extent not financed (it being agreed that Capital Expenditures
paid with the proceeds of Revolving Loans shall not be considered financed for such purposes) (for
the avoidance of doubt, income taxes paid by MTC or its Subsidiaries in the period prior to the
Closing Date and Capital Expenditures paid for by MTC or its Subsidiaries in the period prior to
the Closing Date shall not be included unless Baldwin and its Subsidiaries are obligated to
reimburse the Sellers for same or are otherwise liable for same) to (b) the sum for such
Computation Period of (i) Interest Expense with respect to such Computation Period plus
(ii) all payments of principal of Debt (including the Term Loans but excluding payments required
under Section 6.2.2 and also excluding required payments of the Revolving Loans) required
to be paid by the Parent or its Subsidiaries in such Computation Period plus (iii) any
Rabbi Trust Permitted Payments made in such Computation Period. For the avoidance of doubt, it is
agreed that that if any portion of a Computation Period includes a Pre-Closing Period, the sum
under clause (b) of the immediately preceding sentence for the Pre-Closing Period shall be the sum
of the Interest Expense of the Parent and its Subsidiaries in such Pre-Closing Period plus
all payments of principal of Debt required to be paid by the Parent and its Subsidiaries in such
Pre-Closing Period (and excluding the Interest Expense and payments of principal of Debt required
to be paid by MTC and its Subsidiaries in the Pre-Closing Period and also excluding, for the
avoidance of doubt, any payment of principal of Debt made on the Closing Date with proceeds of the
Bridge Loan).

     Foreign Benefit Plan means any benefit plan maintained outside of the United States or
Germany which under applicable law is required to be funded through a trust or other funding
vehicle other than a trust or funding vehicle maintained exclusively by a Foreign Benefit Plan
Governmental Authority.

     Foreign Benefit Plan Governmental Authority means the government of Japan or any other
nation (other than the United States or Germany) or any political subdivision thereof, whether
state or local, and any agency, authority, instrumentality, regulatory body, court, central

11

 

bank or other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government.

     Foreign Pledge Agreements shall mean (i) the German Share Pledge Agreements (as
defined in the Guaranty and Collateral Agreement), (ii) the Pledge Agreement between BEC BV and the
Administrative Agent, pledging the shares of Baldwin Jimek AB, (iii) the respective Share Pledge
Agreements, pledging the shares of BEC BV and Baldwin Graphic Equipment B.V. in favor of the
Administrative Agent (collectively, the “Netherlands Pledge Agreements”), and (iv) the
Stock Pledge Agreement pledging the shares of Japan-Baldwin Ltd. in favor of the Administrative
Agent.

     Foreign Subsidiary means any Subsidiary of the Parent that is not a Domestic
Subsidiary.

     FRB means the Board of Governors of the Federal Reserve System or any successor
thereto.

     Full Pledging Guarantor shall mean the (i) Parent and (ii) any Domestic Operating
Subsidiary that is a party to the Guaranty and Collateral Agreement and has (a) guaranteed all of
the Obligations of any Loan Party and (b) pledged all or substantially all of its assets to secure
such guaranty, to the extent provided in the Guaranty and Collateral Agreement.

     GAAP means generally accepted accounting principles set forth from time to time in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board (or agencies with similar functions of comparable stature and authority within the
U.S. accounting profession) and the Securities and Exchange Commission, which are applicable to the
circumstances as of the date of determination.

     German Borrower and German Borrowers — see the Preamble.

     German Letters of Credit means a Letter of Credit requested by a German Opco.

     German Opco and German Opcos — see the Preamble.

     German Revolving Commitment or German Revolving Loan Commitment means, with
respect to a Permanent Lender at the applicable time, the commitment of such Permanent Lender to
make German Revolving Loans. The initial amount (in Dollars) of the respective German Revolving
Commitment of each initial Permanent Lender that has made such a commitment is set forth in
Annex A hereto. The German Revolving Commitment of each Permanent Lender may be reduced
pursuant to Section 6. The German Revolving Commitment(s) of the applicable assigning and
assignee Permanent Lender shall be adjusted to give effect to any assignments of a German Revolving
Commitment(s) pursuant to Section 15.6.1.

     German Revolving Commitments or the German Revolving Loan Commitments means,
collectively, the aggregate amount, at the applicable time, of all German Revolving Commitments of
all Permanent Lenders. The initial aggregate amount of the German Revolving Commitments shall be
$15,000,000.

12

 

     German Revolving Loans — see Section 2.1.3.

     German Revolving Outstandings means (a) the aggregate principal amount of all
outstanding German Revolving Loans and (b) the German Stated Amounts.

     German Stated Amounts means, as of any time, the aggregate of all Stated Amounts (as
of such time) with respect to all German Letters of Credit.

     Group — see Section 2.2.1.

     Guaranty and Collateral Agreement means the Guaranty and Collateral Agreement dated as
of the date hereof executed and delivered by certain of the Loan Parties, together with any
joinders thereto and any other guaranty and collateral agreement executed by a Loan Party, in each
case in form and substance satisfactory to the Administrative Agent.

     Hazardous Substances means (a) any petroleum or petroleum products, radioactive
materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation,
dielectric fluid containing levels of polychlorinated biphenyls and radon gas; (b) any chemicals,
materials, pollutant or substances defined as or included in the definition of “hazardous
substances”, “hazardous waste”, “hazardous materials”, “extremely hazardous substances”,
“restricted hazardous waste”, “toxic substances”, “toxic pollutants”, “contaminants”, “pollutants”
or words of similar import, under any applicable Environmental Law; and (c) any other chemical,
material or substance, the exposure to, or release of which is prohibited, limited or regulated by
any governmental authority or pursuant to, any Environmental Law.

     Hedging Agreement means any interest rate, currency or commodity swap agreement, cap
agreement or collar agreement, and any other agreement or arrangement designed to protect a Person
against fluctuations in interest rates, currency exchange rates or commodity prices.

     Hedging Obligation means, with respect to any Person, any liability of such Person
under any Hedging Agreement.

     Holding Company — see the Guaranty and Collateral Agreement.

     Indemnified Liabilities — see Section 15.17.

     Initial German Revolving Loan — see Section 2.1.3.

     Initial Letters of Credit shall mean any and all of the following letters of credit to
the extent actually issued by the Issuing Lender at the request of the Parent: (i) letter of
credit no. S594750 in the original face amount of $804,173.45 (or an amount approximately similar)
naming Maple Bank GmbH as beneficiary, (ii) letter of credit no. S594748 in the original face
amount of Euros 1,594,201.69 (or an amount approximately similar) naming Maple Bank GmbH as
beneficiary, and (iii) the letter of credit no. S594749 in the original face amount of Euros
1,135,433.87 (or an amount approximately similar) naming Dresdner Bank AG as

13

 

beneficiary. To the extent issued, each Initial Letters of Credit will be issued after the
Closing Date and before the Permanent Loan Commencement Date.

     Interest Expense means for any fiscal period the consolidated interest expense of the
Parent and its Subsidiaries for such period (including all imputed interest on Capital Leases).

     Interest Period means, as to any LIBOR Loan, the period commencing on the date such
Loan is borrowed or continued as, or converted into, a LIBOR Loan and ending on the date one, two,
three or six months thereafter as selected by the applicable Borrower pursuant to Section
2.2.2 or 2.2.3, as the case may be; provided that:

     (a) if any Interest Period would otherwise end on a day that is not a Business
Day, such Interest Period shall be extended to the following Business Day unless the
result of such extension would be to carry such Interest Period into another
calendar month, in which event such Interest Period shall end on the preceding
Business Day;

     (b) any Interest Period that begins on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period shall end
on the last Business Day of the calendar month at the end of such Interest Period;

     (c) no Borrower may select any Interest Period for a Revolving Loan which
would extend beyond the scheduled Termination Date; and

     (d) no Borrower may select any Interest Period for the Term Loans if, after
giving effect to such selection, the aggregate principal amount of the Term Loans
having Interest Periods ending after any date on which an installment of the Term
Loans is scheduled to be repaid would exceed the aggregate principal amount of the
Term Loans scheduled to be outstanding after giving effect to such repayment.

     Inventory is defined in the Guaranty and Collateral Agreement.

     Investment means, with respect to any Person, any investment in or loan to another
Person, whether by acquisition of any debt or Capital Security, by making any loan or advance, by
becoming obligated with respect to a Contingent Liability in respect of obligations of such other
Person (other than travel and similar advances to employees in the ordinary course of business) or
by making an Acquisition.

     Issuing Lender means LaSalle, in its capacity as the issuer of Letters of Credit
hereunder, or any Affiliate of LaSalle that may from time to time issue Letters of Credit, and
their successors and assigns in such capacity.

     Japanese Subsidiary means any Foreign Subsidiary incorporated or organized under the
laws of Japan.

14

 

     LaSalle — see the Preamble.

     L/C Application means, with respect to any request for the issuance of a Letter of
Credit, a letter of credit application in the form being used by the Issuing Lender at the time of
such request for the type of Letter of Credit requested.

     L/C Fee Rate — see the definition of Applicable Margin.

     Lenders means the Bridge Lenders and the Permanent Lenders and Lender means
the Bridge Lender or any Permanent Lender as applicable. References to the “Permanent Lenders” or
“Lenders” shall include the Issuing Lender; for purposes of clarification only, to the extent that
LaSalle (or any successor Issuing Lender) may have any rights or obligations in addition to those
of the other the Permanent Lenders due to its status as Issuing Lender, its status as such will be
specifically referenced. In addition to the foregoing, for the purpose of identifying the Persons
entitled to share in the benefits of the applicable guaranties and Collateral and the proceeds
thereof under, and in accordance with the provisions of, this Agreement and the Collateral
Documents, the terms “Permanent Lender” and “Lender” shall include Affiliates of Lender or
Permanent Lender providing a Bank Product.

     Lender Party — see Section 15.17.

     Letters of Credit — see Section 2.1.5.

     LIBOR Loan means any Loan which bears interest at a rate determined by reference to
the LIBOR Rate.

     LIBOR Margin — see the definition of Applicable Margin.

     LIBOR Office means with respect to any Lender the office or offices of such Lender
which shall be making or maintaining the LIBOR Loans of such Lender hereunder. A LIBOR Office of
any Lender may be, at the option of such Lender, either a domestic or foreign office.

     LIBOR Rate means a rate of interest equal to (a) the per annum rate of interest at
which deposits in Dollars (in the case of LIBOR Loans in Dollars) or deposits in Euros (in the case
of LIBOR Loans in Euros) in an amount comparable to the amount of the relevant LIBOR Loan and for a
period equal to the relevant Interest Period are offered in the London interbank market for
deposits in Dollars (in the case of LIBOR Loans in Dollars) or in Euros (in the case of LIBOR Loans
in Euros) at 11:00 A.M. (London time) two (2) Business Days prior to the commencement of such
Interest Period (or three (3) Business Days prior to the commencement of such Interest Period if
banks in London, England were not open and dealing in offshore Dollars (or in Euros in the case of
LIBOR Loans in Euros) on such second preceding Business Day), as displayed (i) in the case of LIBOR
Loans in Dollars, in the Bloomberg Financial Markets system (or other authoritative source selected
by the Administrative Agent in its sole discretion and of which the Administrative Agent gives
written notice to the Parent and the other Borrowers) or, if the Bloomberg Financial Markets system
or another authoritative source is not available, as the LIBOR Rate (for LIBOR Loans in Dollars) is
otherwise determined by the Administrative Agent in its sole and absolute discretion and (ii) in
the case of LIBOR Loans in

15

 

Euros, in the Bloomberg Financial Markets system (or other authoritative source selected by
the Administrative Agent in its sole discretion and of which the Administrative Agent gives written
notice to the Parent and the other Borrowers) or, if the Bloomberg Financial Markets system or
another authoritative source is not available, as the LIBOR Rate (for LIBOR Loans in Euros) is
otherwise determined by the Administrative Agent in its sole and absolute discretion, divided by
(b) a number determined by subtracting from 1.00 the then stated maximum reserve percentage
(expressed as a decimal carried out to four decimal places) for determining reserves to be
maintained by member banks of the Federal Reserve System for Eurocurrency funding or liabilities as
defined in Regulation D (or any successor category of liabilities under Regulation D), such rate to
remain fixed for such Interest Period. The Administrative Agent’s determination of the LIBOR Rate
shall be conclusive, absent manifest error.

     Lien means, with respect to any Person, any interest granted by such Person in any
real or personal property, asset or other right owned or being purchased or acquired by such Person
(including an interest in respect of a Capital Lease) which secures payment or performance of any
obligation and shall include any mortgage, lien, encumbrance, title retention lien, charge or other
security interest of any kind, whether arising by contract, as a matter of law, by judicial process
or otherwise.

     Loan Documents means this Agreement, the Notes, the Letters of Credit, the Master
Letter of Credit Agreement, the L/C Applications, the Agent Fee Letter, the Collateral Documents,
any applicable subordination agreements (if any), and all documents, instruments and agreements
delivered in connection with the foregoing.

     Loan Party means the Parent and each Subsidiary.

     Loan or Loans means, as the context may require, the Bridge Loan, the Revolving Loans,
and the Term Loans.

     Mandatory Prepayment Event — see Section 6.2.2(a).

     Margin Stock means any “margin stock” as defined in Regulation U.

     Master Letter of Credit Agreement means, at any time, with respect to the issuance of
Letters of Credit, a master letter of credit agreement or reimbursement agreement in the form, if
any, being used by the Issuing Lender at such time.

     Material Adverse Effect means (a) a material adverse change in, or a material adverse
effect upon, the financial condition, operations, assets, business, properties or prospects of the
Loan Parties taken as a whole, (b) a material impairment of the ability of any Loan Party to
perform any of the Obligations under any Loan Document that such Loan Party is obligated to perform
or (c) a material adverse effect upon any material portion of the Collateral under the Collateral
Documents or upon the legality, validity, binding effect or enforceability against any Loan Party
of any Loan Document.

     Material Subsidiary” means all Subsidiaries of the Parent except those listed on
Schedule 1.1A; provided, however, it is agreed that any Subsidiary that is so listed shall
be deemed to be a

16

 

Material Subsidiary if such Subsidiary (i) for the most recent Fiscal Year accounted for 5% or
more of the consolidated revenues of the Parent and its Subsidiaries or (ii) as at the end of such
Fiscal Year, was the owner of 5% or more of the consolidated assets of the Parent and its
Subsidiaries (for the avoidance of doubt, (a) any such change of status from not being a Material
Subsidiary to being a Material Subsidiary shall be effective as of last day of such Fiscal Year and
(b) once a Subsidiary so changes its status from not being a Material Subsidiary to being a
Material Subsidiary it shall at all times thereafter be considered a Material Subsidiary).

     Mortgage means a mortgage, deed of trust, leasehold mortgage or similar instrument
granting the Administrative Agent a Lien on real property of any Loan Party.

     MTC means MTC Trading Company, an Arizona corporation.

     Multiemployer Pension Plan means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which the Parent or any other member of the Controlled Group contributes or
has an obligation to contribute or has within any of the preceding five calendar years contributed
or had an obligation to contribute.

     Net Cash Proceeds means:

	 	(a)	 	with respect to any Asset Disposition, the aggregate cash proceeds (including
cash proceeds received pursuant to policies of insurance or by way of deferred payment
of principal pursuant to a note, installment receivable or otherwise, but only as and
when received) received by any Loan Party pursuant to such Asset Disposition net of (i)
the direct costs relating to such sale, transfer or other disposition (including
without limitation sales commissions and reasonable legal, accounting and investment
banking fees and other reasonable out-of-pocket fees, costs and expenses of advisors
who are not Affiliates of the Parent or its Subsidiaries), (ii) taxes paid or
reasonably estimated by the Parent to be payable as a result thereof (after taking into
account any available tax credits or deductions and any tax sharing arrangements),
(iii) amounts required to be applied to the repayment of any Debt (to the extent
permitted hereunder) secured by a Lien on the asset subject to such Asset Disposition
(other than the Loans) and (iv) any amount required to be provided by such Loan Party,
as a reserve, in accordance with GAAP against any liabilities associated with such
Asset Disposition including, without limitation, pension and other post-employment
benefit liabilities, liabilities related to environmental matters and liabilities under
any indemnification obligations associated with any such Asset Disposition;
provided, however, that the amount of any such reserve, at the time
that such reserve is no longer required in accordance with GAAP and to the extent that
such amount is not actually applied to the liability for which it was reserved, shall
be deemed to be part of the Net Cash Proceeds of such Asset Disposition;
	 
	 	(b)	 	with respect to any issuance of Capital Securities, the aggregate cash proceeds
received by any Loan Party pursuant to such issuance, net of the direct costs relating
to such issuance (including sales and underwriters’ commissions and

17

 

	 	 	 	reasonable attorneys’ fees and other reasonable out-of-pocket fees, costs and
expenses of advisors who are not Affiliates of the Parent or its Subsidiaries); and
	 
	 	(c)	 	with respect to any issuance of Debt, the aggregate cash proceeds received by
any Loan Party pursuant to such issuance, net of the direct costs of such issuance
(including up-front, underwriters’ and placement fees and reasonable attorneys’ fees
and other reasonable out-of-pocket fees, costs and expenses of advisors who are not
Affiliates of the Parent or its Subsidiaries).

     Net Worth means, as of any date, the sum of the capital stock and additional paid-in
capital plus retained earnings (or minus accumulated deficit) calculated in conformity with GAAP.

     Netherlands Pledge Agreements - see the definition of Foreign Pledge Agreements.

     Newco — see the Preamble.

     Non-U.S. Participant — see Section 7.6(d).

     Non-Use Fee Rate — see the definition of Applicable Margin.

     Note means the Bridge Note or a Permanent Loans Note, as the case may be, and
Notes means the Bridge Note and the Permanent Loans Notes collectively.

     Notice of Borrowing — see Section 2.2.2.

     Notice of Conversion/Continuation — see Section 2.2.3.

     Obligations means all obligations (monetary (including post-petition interest, allowed
or not) or otherwise) of any Loan Party under this Agreement and any other Loan Document including
Attorney Costs and any reimbursement obligations of each Loan Party in respect of Letters of Credit
(including those to the Issuing Lender or any other applicable Person) and surety bonds, all
Hedging Obligations of any Loan Party permitted hereunder which are owed to any Lender or its
Affiliate or the Administrative Agent (including any Hedging Obligations entered into pursuant to
Section 10.11 and whether or not such Lender or the Person acting as Administrative Agent
subsequently (after such Hedging Obligations relating to Section 10.11 are entered into) is
no longer a party to this Agreement), and all Bank Products Obligations, all in each case howsoever
created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter
existing, or due or to become due.

     OFAC — see Section 10.4.

     Off Balance Sheet Liabilities of a Person means (a) any repurchase obligation or
liability of such Person or any of its Subsidiaries with respect to accounts or notes receivable
sold by such Person or any of its Subsidiaries, (b) any liability of such Person or any of its
Subsidiaries under any sale and leaseback transactions which do not create a liability on the
consolidated balance sheet of such Person, (c) any liability of such Person or any of its
Subsidiaries under any

18

 

financing lease or so-called “synthetic” lease transaction, or (d) any obligations of such
Person or any of its Subsidiaries arising with respect to any other transaction which is the
functional equivalent of or takes the place of borrowing but which does not constitute a liability
on the consolidated balance sheets of such Person and its Subsidiaries.

     Operating Lease means any lease of (or other agreement conveying the right to use) any
real or personal property by any Loan Party, as lessee, other than any Capital Lease.

     Organschaft means a profit and loss pooling arrangement among Newco and Oxy-Dry GmbH
and also, if so elected by the Parent, BGG.

     Oxy-Dry GmbH — see the Preamble.

     Oxy-Dry GmbH German Revolving Outstandings means the sum of (a) the aggregate
principal amount of all outstanding German Revolving Loans borrowed by Oxy-Dry GmbH and (b) the
German Stated Amounts with respect to Letters of Credit requested by Oxy-Dry GmbH.

     PBGC means the Pension Benefit Guaranty Corporation and any entity succeeding to any
or all of its functions under ERISA.

     Parent — see the Preamble.

     Parent Letters of Credit means a Letter of Credit requested by the Parent.

     Parent Revolving Commitment or Parent Revolving Loan Commitment means, with
respect to a Permanent Lender at the applicable time, the commitment of such Permanent Lender to
make Parent Revolving Loans. The initial amount (in Dollars) of the respective Parent Revolving
Commitment of each initial Permanent Lender that has made such a commitment is set forth in
Annex A hereto. The Parent Revolving Commitment of each Permanent Lender may be reduced
pursuant to Section 6. The Parent Revolving Commitment(s) of the applicable assigning and
assignee Permanent Lender shall be adjusted to give effect to any assignments of a Parent Revolving
Commitment pursuant to Section 15.6.1.

     Parent Revolving Commitments or the Parent Revolving Loan Commitments means,
collectively, the aggregate amount, at the applicable time, of all Parent Revolving Commitments of
all Permanent Lenders. The initial aggregate amount of the Parent Revolving Commitments shall be
$20,000,000.

     Parent Revolving Loans — see Section 2.1.2.

     Parent Revolving Outstandings means the sum of (a) the aggregate principal amount of
all outstanding Parent Revolving Loans plus (without duplication) (b) the Parent Stated Amounts.

     Parent Stated Amounts means, as of any time, the aggregate of all Stated Amounts (as
of such time) with respect to all Parent Letters of Credit.

19

 

     Participant — see Section 15.6.2.

     Participating Member State shall mean each country so described in any EMU
Legislation.

     Pension Plan means a “pension plan”, as such term is defined in Section 3(2) of ERISA,
which is (i) subject to Title IV of ERISA (other than a Multiemployer Pension Plan), and as to
which the Parent or any member of the Controlled Group could reasonably be expected to have any
liability, including any liability by reason of having been a substantial employer within the
meaning of Section 4063 of ERISA at any time during the preceding five years, or by reason of being
deemed to be a contributing sponsor under Section 4069 of ERISA or (ii) a tax-qualified “pension
plan” the trust of which holds stock of the Parent or any of its Subsidiaries.

     Permanent Lenders means any of the Persons identified as a Permanent Lender on the
signature pages hereto together with its/their successors and permitted assigns (and any successive
successors and permitted assigns). Reference is made to the definition of Lenders for certain
additional provisions with respect to the definition of Permanent Lenders. A Permitted
Lender means a Person constituting a Permanent Lender.

     Permanent Loan Commencement Date means any Business Day after the Bridge Loan is made
but no later than December 29, 2006, and on which Business Day the initial Parent Revolving Loan,
initial German Revolving Loan and the Term Loans are made.

     Permanent Loans means, collectively, the Term Loans and the Revolving Loans.

     Permanent Loans Note — see Section 3.1. Permanent Loans Notes means
the Permanent Loans Notes collectively.

     Perfection Certificate means a perfection certificate executed and delivered to the
Administrative Agent by a Loan Party.

     Permitted Lien means a Lien expressly permitted hereunder pursuant to Section
11.2.

     Person means any natural person, corporation, partnership, trust, limited liability
company, association, governmental authority or unit, or any other entity, whether acting in an
individual, fiduciary or other capacity.

     Post-Closing Structural Steps means the steps set forth in Schedule 1.1B.

     Preamble means the opening paragraph of this Agreement.

     Pre-Closing Period means a period of time prior to the Closing Date.

     Prime Rate means, for any day, the rate of interest in effect for such day as publicly
announced from time to time by the Administrative Agent as its prime rate (whether or not such rate
is actually charged by the Administrative Agent), which is not intended to be the Administrative
Agent’s lowest or most favorable rate of interest at any one time. Any change in

20

 

the Prime Rate announced by the Administrative Agent shall take effect at the opening of
business on the day specified in the public announcement of such change; provided that the
Administrative Agent shall not be obligated to give notice of any change in the Prime Rate.

     Pro Rata Share means:

	 	(a)	 	with respect to a Permanent Lender’s obligation to make Parent Revolving Loans,
participate in Parent Letters of Credit, reimburse the Issuing Lender with respect to
Parent Letters of Credit, and receive payments of principal, interest, fees, costs, and
expenses with respect thereto, (x) prior to the Parent Revolving Commitment being
terminated or reduced to zero, the percentage obtained by dividing (i) such Permanent
Lender’s Parent Revolving Commitment, by (ii) the aggregate Parent Revolving
Commitments of all Permanent Lenders and (y) from and after the time the Parent
Revolving Commitments have been terminated or reduced to zero, the percentage obtained
by dividing (i) the aggregate unpaid principal amount of such Permanent Lender’s Parent
Revolving Outstandings by (ii) the aggregate unpaid principal amount of all Parent
Revolving Outstandings;
	 
	 	(b)	 	with respect to a Permanent Lender’s obligation to make German Revolving Loans,
participate in German Letters of Credit, reimburse the Issuing Lender with respect to
German Letters of Credit, and receive payments of principal, interest, fees, costs, and
expenses with respect thereto, (x) prior to the German Revolving Commitment being
terminated or reduced to zero, the percentage obtained by dividing (i) such Permanent
Lender’s German Revolving Commitment, by (ii) the aggregate German Revolving
Commitments of all Permanent Lenders and (y) from and after the time the German
Revolving Commitments have been terminated or reduced to zero, the percentage obtained
by dividing (i) the aggregate unpaid principal amount of such Permanent Lender’s German
Revolving Outstandings by (ii) the aggregate unpaid principal amount of all German
Revolving Outstandings;
	 
	 	(c)	 	with respect to a Permanent Lender’s obligation to make a Term Loan and receive
payments of interest, fees, costs, and principal with respect thereto, the percentage
obtained by dividing (i) such Lender’s Term Loan Exposure, by (ii) the aggregate amount
of all Permanent Lenders’ Term Loan Exposures; and
	 
	 	(d)	 	with respect to all other matters as to a particular Lender, the percentage
obtained by dividing (i) such Lender’s aggregate Revolving Commitments plus
such Lender’s Term Loan Exposure, by (ii) the aggregate amount of Revolving Commitments
of all Lenders plus the Term Loan Exposures of all Lenders; provided
that in the event the Commitments have been terminated or reduced to zero, Pro Rata
Share shall be the percentage obtained by dividing (A) the aggregate principal amount
of such Lender’s Revolving Outstandings plus the unpaid principal amount of
such Lender’s Term Loan Exposure by (B) the aggregate principal amount of all
outstanding Revolving Outstandings plus the aggregate unpaid principal amount
of the Term Loan Exposures of all Lenders.

21

 

     Purchase Agreement means the Amended and Restated Stock Purchase Agreement by and
among the Parent and the Sellers, dated November 17, 2006.

     Rabbi Trust means the trust established pursuant to the Rabbi Trust Agreement.

     Rabbi Trust Agreement means that certain Grantor Trust Agreement under Certain Baldwin
Technology Company, Inc. Supplemental Retirement Benefit Plans, dated February 14, 2006 by and
between the Parent and Key Bank National Association.

     Rabbi Trust Existing Contributions means (i) the transfer prior to the Closing Date of
the Insurance Policies (as defined in the Rabbi Trust Agreement) to the Rabbi Trust and (iii) cash
contributions made by the Parent to the Rabbi Trust prior to the Closing Date and aggregating no
more than $1,250,000.

     Rabbi Trust Permitted Payments shall mean the following contributions to the Rabbi
Trust made after the Closing Date: (a) cash contributions not exceeding $1,000,000 in any
consecutive twelve month period and not exceeding $2,050,000 in the aggregate provided that no such
contribution under this clause (a) shall be made if an Event of Default or Unmatured Event of
Default shall exist at the time of or shall result from such contribution or if the Parent is not
able to meet the required Fixed Charge Covenant Ratio under Section 11.14.2 on a pro-forma
basis taking into consideration such contribution(s) and (b) upon the occurrence of a Potential
Change of Control (as defined in the Rabbi Trust Agreement as constituted on the date hereof) the
Parent shall be permitted to make those contributions required to be made (as a result of the
Potential Change of Control) under the Rabbi Trust Agreement (as constituted on the date hereof).

     Regulation D means Regulation D of the FRB.

     Regulation U means Regulation U of the FRB.

     Related Agreements means the Purchase Agreement, and any other material agreement,
instrument or other document delivered pursuant to the Purchase Agreement.

     Related Transactions means the purchase by Parent of the Capital Securities of MTC and
all related transactions contemplated by the Related Agreements.

     Replacement Lender — see Section 8.7(b).

     Reportable Event means a reportable event as defined in Section 4043 of ERISA and the
regulations issued thereunder as to which the PBGC has not waived the notification requirement of
Section 4043(a), or the failure of a Pension Plan to meet the minimum funding standards of Section
412 of the Code (without regard to whether the Pension Plan is a plan described in Section
4021(a)(2) of ERISA) or under Section 302 of ERISA.

     Required Lenders means, (i) until the Bridge Loan is paid in full, the Bridge Loan
Lender and (b) at any time after the Bridge Loan Lender is paid in full, Permanent Lenders whose
Pro

22

 

Rata
Shares exceed (in the aggregate) at least
662/3% as determined pursuant to clause (d) of
the definition of “Pro Rata Share”.

     Revaluation Date means (x) with respect to any Permanent Loan, each of the following:
(i) each date a Loan is made (or, at the election of the Administrative Agent, when the interest
rate for such Loan is set), (ii) each date of a continuation of a LIBOR Loan denominated in Euros,
(iii) any date that any Revolving Commitment is reduced, and (iv) such additional dates as the
Administrative Agent shall determine or the Required Lenders shall require and (y) with respect to
any Letter of Credit, each of the following: (i) each date of issuance of a Letter of Credit
denominated in Euros, (ii) each date of an amendment of any such Letter of Credit having the effect
of increasing the amount thereof (solely with respect to the increased amount), (iii) each date of
any payment by the Issuing Lender under any Letter of Credit denominated in Euros, and (iv) such
additional dates as the Administrative Agent or the Issuing Lender shall determine or the Required
Lenders shall require.

     Revolving Commitments or Revolving Loan Commitments means, as of any time, the
sum of (a) the Parent Revolving Commitments and (b) the German Revolving Commitments.

     Revolving Loans means, collectively, the German Revolving Loans and the Parent
Revolving Loans.

     Revolving Outstandings means, at any time, the sum of (a) the Parent Revolving
Outstandings and (b) the German Revolving Outstandings.

     SEC means the United States Securities and Exchange Commission or any other
governmental authority succeeding to any of the principal functions thereof.

     Sellers means the “Sellers” as defined in the Purchase Agreement.

     Senior Officer means, with respect to any Loan Party, any of the chief executive
officer, the president, the chief financial officer, the chief operating officer or the treasurer
of such Loan Party.

     Specified Integration and Restructuring Expenses means (a) integration costs and
integration expenses (excluding Capital Expenditures) incurred by the Parent or its Subsidiaries
from the Closing Date to December 31, 2007 in connection with the Related Transactions, including,
without limitation, as a result of systems integration, IT integration, facility relocation,
Sarbanes-Oxley, consultants, signage and professional advisors, and (b) restructuring expenses
(excluding Capital Expenditures), in accordance with GAAP, incurred by the Parent or its
Subsidiaries from the Closing Date to December 31, 2007 in connection with the Related
Transactions; provided, that for purposes of this definition the Specified Integration and
Restructuring Expenses shall not exceed an aggregate of $6 million.

     Spot Rate means, for a currency, the rate determined by the Administrative Agent or
the Issuing Lender, as applicable, to be the rate quoted by the Person acting in such capacity as
the spot rate for the purchase by such Person of Euros with Dollars through its principal
applicable foreign exchange trading office at approximately 11:00 a.m. on the date two Business
Days prior

23

 

to the date as of which the foreign exchange computation is made; provided that the
Administrative Agent or the Issuing Lender may obtain such spot rate from another financial
institution designated by the Administrative Agent or the Issuing Lender if the Person acting in
such capacity does not have as of the date of determination a spot buying rate for Euros with
Dollars; and provided further that the Issuing Lender may use such spot rate quoted
on the date as of which the foreign exchange computation is made in the case of any Letter of
Credit denominated in Euros.

     Stated Amount means, with respect to any Letter of Credit at any date of
determination, (a) the maximum aggregate amount available for drawing thereunder under any and all
circumstances plus (b) the aggregate amount of all unreimbursed payments and disbursements under
such Letter of Credit.

     Subsidiary means, with respect to any Person, a corporation, partnership, limited
liability company or other entity of which such Person owns, directly or indirectly, such number of
outstanding Capital Securities as have more than 50% of the ordinary voting power for the election
of directors or other managers of such corporation, partnership, limited liability company or other
entity. Unless the context otherwise requires, each reference to Subsidiaries herein shall be a
reference to Subsidiaries of the Parent.

     Target Day means any day on which the Trans-European Automated Real-time Gross
Settlement Express Transfer (TARGET) payment system (or, if such payment system ceases to be
operative, such other payment system (if any) determined by the Administrative Agent to be a
suitable replacement) is open for the settlement of payments in Euro.

     Taxes means any and all present and future taxes, duties, levies, imposts, deductions,
assessments, charges or withholdings, and any and all liabilities (including interest and penalties
and other additions to taxes) with respect to the foregoing, but excluding Excluded Taxes.

     Term Loan Commitment means, with respect to a Permanent Lender at the applicable time,
the commitment of such Permanent Lender to make a Term Loan. The amount (in Dollars) of the
respective Term Loan Commitment of each initial Permanent Lender that has made such a commitment is
set forth in Annex A hereto. The Term Loan Commitment(s) of the applicable assigning and
assignee Permanent Lender shall be adjusted to give effect to any assignments of a Term Loan
Commitment pursuant to Section 15.6.1.

     Term Loan Commitments means, collectively, the aggregate amount of all Term Loan
Commitments. The aggregate amount of all Term Loan Commitments shall be $15,000,000.

     Term Loan — see Section 2.1.4.

     Term Loan Exposure means, as of the applicable time, with respect to a Permanent
Lender, (i) prior to the making of the Term Loans, such Permanent Lender’s Term Loan Commitment and
(ii) from and after the making of the Term Loans, the then unpaid principal amount of such
Permanent Lender’s Term Loan.

24

 

     Term Loans means, collectively, the Term Loans made by the Permanent Lenders. The
initial aggregate amount of the Term Loans shall be $15,000,000.

     Term Loan Maturity Date means the earlier of (a) November 21, 2011 or (b) the
Termination Date.

     Termination Date means the earlier to occur of (a) November 21, 2011 or (b) such other
date on which the Commitments terminate pursuant to Section 6 or Section 13.

     Termination Event means, with respect to a Pension Plan that is subject to Title IV of
ERISA, (a) a Reportable Event, (b) the withdrawal of Parent or any other member of the Controlled
Group from such Pension Plan during a plan year in which Parent or any other member of the
Controlled Group was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, (c) the
termination of such Pension Plan, the filing of a notice of intent to terminate the Pension Plan or
the treatment of an amendment of such Pension Plan as a termination under Section 4041 of ERISA,
(d) the institution by the PBGC of proceedings to terminate such Pension Plan or (e) any event or
condition that constitutes grounds under Section 4042 of ERISA for the termination of, or
appointment of a trustee to administer, such Pension Plan.

     Total Debt means all Debt of the Parent and its Subsidiaries, determined on a
consolidated basis, excluding (a) contingent obligations in respect of Contingent Liabilities
(except to the extent constituting Contingent Liabilities in respect of Debt of a Person other than
the Parent or any of its Subsidiaries), (b) Hedging Obligations, and (c) Debt of the Parent to its
Subsidiaries and Debt of Subsidiaries of the Parent or to the Parent or other Subsidiaries of the
Parent to the extent such Debt described in this clause (c) is permitted under this Agreement. For
the avoidance of doubt, to the extent the Initial Letters of Credit secure reimbursement
obligations of the Parent or its Subsidiaries under other letters of credit or bank guaranties, the
obligations of the Parent or its Subsidiaries will not be double-counted in determining Total Debt.

     Total Debt to EBITDA Ratio means, as of the last day of any Fiscal Quarter, the ratio
of (a) Total Debt as of such day to (b) EBITDA for the Computation Period ending on such day.

     Total Plan Liability means, at any time, the present value of all vested and unvested
accrued benefits under all Pension Plans subject to title IV of ERISA, determined as of the then
most recent valuation date for each such Pension Plan, using PBGC actuarial assumptions for single
employer plan terminations.

     type — see Section 2.2.1.

     UCC is defined in the Guaranty and Collateral Agreement.

     Unfunded Liability means the amount (if any) by which the present value of all vested
and unvested accrued benefits under all Pension Plans subject to title IV of ERISA exceeds the fair
market value of all assets allocable to those benefits, all determined as of the then most recent
valuation date for each such Pension Plan, using PBGC actuarial assumptions for single employer
plan terminations.

25

 

     Unmatured Event of Default means any event that, if it continues uncured, will, with
lapse of time or notice or both, constitute an Event of Default.

     Withholding Certificate — see Section 7.6(d).

     Wholly-Owned Subsidiary means, as to any Person, another Person all of the Capital
Securities of which (except directors’ qualifying Capital Securities) are at the time directly or
indirectly owned by such Person and/or another Wholly-Owned Subsidiary of such Person.

     1.2 Other Interpretive Provisions.

     (a) The meanings of defined terms are equally applicable to the singular and plural forms of
the defined terms.

     (b) Section, Annex, Schedule and Exhibit references are to this Agreement unless
otherwise specified.

     (c) The term “including” is not limiting and means “including without limitation.”

     (d) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”,
and the word “through” means “to and including.”

     (e) Unless otherwise expressly provided herein, (i) references to agreements (including this
Agreement and the other Loan Documents) and other contractual instruments shall be deemed to
include all subsequent amendments, restatements, supplements and other modifications thereto, but
only to the extent such amendments, restatements, supplements and other modifications are not
prohibited by the terms of any Loan Document, and (ii) references to any statute or regulation
shall be construed as including all statutory and regulatory provisions amending, replacing,
supplementing or interpreting such statute or regulation.

     (f) This Agreement and the other Loan Documents may use several different limitations, tests
or measurements to regulate the same or similar matters. All such limitations, tests and
measurements are cumulative and each shall be performed in accordance with its terms.

     (g) This Agreement and the other Loan Documents are the result of negotiations among and have
been reviewed by counsel to the Administrative Agent, the Borrowers, the Lenders and the other
parties thereto and are the products of all parties. Accordingly, they shall not be construed
against the Administrative Agent or the Lenders merely because of the Administrative Agent’s or
Lenders’ involvement in their preparation.

     1.3 Exchange Rate; Currency Equivalents. The Administrative Agent or the Issuing Lender,
as applicable, shall determine the Spot Rates as of each Revaluation Date to be used for
calculating Dollar Equivalent amounts of the Permanent Loans or Letters of Credit (or Stated
Amounts) and other amounts outstanding hereunder denominated in Euros (and other applicable amounts
in Euros) or in calculating any Euro Currency Equivalent for purposes hereof. Such Spot Rates shall become effective as of such
Revaluation Date and shall be the Spot Rates

26

 

employed in converting any amounts between the Dollar
and Euro until the next Revaluation Date to occur. Except for purposes of financial statements
delivered by any Borrower hereunder or calculating financial covenants hereunder or except as
otherwise provided herein, the applicable amount of Euros for purposes of the Loan Documents shall
be such Dollar Equivalent amount as so determined by the Administrative Agent or the Issuing Lender, as applicable.

     Wherever in this Credit Agreement in connection with the extension of a Permanent Loan or a
Letter of Credit, or the conversion, continuation or prepayment of a Permanent Loan or the
issuance, amendment or extension of a Letter of Credit, an amount, such as a required minimum or
multiple amount, is expressed in Dollars, but such Permanent Loan or Letter of Credit is
denominated in Euros, such amount shall be the relevant Euro Currency Equivalent of such Dollar
amount, as determined by the Administrative Agent or the Issuing Lender, as the case may be.

     Unless otherwise specified herein, the amount of a Letter of Credit at any time shall be
deemed to be the Dollar Equivalent of the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of Credit that, by its
terms or the terms of any applicable issuer document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of Credit shall be
deemed to be the Dollar Equivalent of the maximum stated amount of such Letter of Credit after
giving effect to all such increases, whether or not such maximum stated amount is in effect at such
time.

     SECTION 2 COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES.

     2.1 Commitments. On and subject to the terms and conditions of this Agreement, the Bridge
Lender, in the case of the Bridge Loan, and each of the applicable Permanent Lenders (severally and
for itself alone), in the case of the Permanent Loans, agrees to make loans to, and to issue or
participate in letters of credit for the account of, the Borrowers as follows:

     2.1.1 Bridge Loan. The Bridge Lender agrees to make the Bridge Loan to the Parent.
The Bridge Loan shall be borrowed in Dollars.

     2.1.2 Parent Revolving Commitments. Each Permanent Lender with a Parent Revolving
Loan Commitment agrees to make loans to the Parent on a revolving basis (“Parent Revolving
Loans”) from time to time from the Permanent Loan Commencement Date until the Termination Date
in such Permanent Lender’s Pro Rata Share of such aggregate amounts as the Parent may request from
all such Permanent Lenders; provided that (i) the Dollar Equivalent (as of the most recent
Revaluation Date) of the sum of (a) the unpaid principal balance of all Parent Revolving Loans made
by each such Permanent Lender and (b) the Dollar Equivalent of such Permanent Lender’s Pro-Rata
Share of the Parent Stated Amounts shall not exceed the amount (in Dollars) of such Permanent
Lender’s Parent Revolving Commitment, (ii) the Dollar
Equivalent (as of the most recent Revaluation Date) of all Parent Revolving Outstandings shall
not exceed the Parent Revolving Loan Commitments (in Dollars), and (iii) the Dollar Equivalent (as
of the most recent Revaluation Date) of Revolving Outstandings shall not exceed the

27

 

Revolving
Commitments (in Dollars). The Parent Revolving Loans may be borrowed in Dollars or Euros.

     2.1.3 German Revolving Commitments. Each Permanent Lender with a German Revolving
Loan Commitment agrees to make loans to the German Borrowers on a revolving basis (“German
Revolving Loans”) from time to time from the Permanent Loan Commencement Date until the
Termination Date in such Permanent Lender’s Pro Rata Share of such aggregate amounts as the
applicable German Borrower may request from all such Permanent Lenders; provided that (i)
only Newco may borrow the initial German Revolving Loan (the “Initial German Revolving
Loan”) which shall be in an aggregate principal amount up to $7 million and the proceeds of the
Initial German Revolving Loan shall be used as set forth in Section 10.6, (ii) after the
Initial German Revolving Loan, only the German Opcos shall be permitted to borrow German Revolving
Loans, (iii) the Dollar Equivalent (as of the most recent Revaluation Date) of the sum of (a) the
unpaid principal balance of all German Revolving Loans made by each Permanent Lender with a German
Revolving Loan Commitment and (b) the Dollar Equivalent of such Permanent Lender’s Pro-Rata Share
of the German Stated Amounts shall not exceed the amount (in Dollars) of such Permanent Lender’s
German Revolving Loan Commitment, (iv) the Dollar Equivalent (as of the most recent Revaluation
Date) of all German Revolving Outstandings shall not exceed the German Revolving Loan Commitments
(in Dollars), and (v) the Dollar Equivalent (as of the most recent Revaluation Date) of Revolving
Outstandings shall not exceed the Revolving Commitments (in Dollars). The German Revolving Loans
may be borrowed in Dollars or Euros.

     2.1.4 Term Loan Commitments. Each Permanent Lender with a Term Loan Commitment agrees
to make a loan to Newco (each such loan, a “Term Loan”) in the amount of such Lender’s Term
Loan Commitment on the Permanent Loan Commencement Date. Subject to the other terms and conditions
hereof, the Term Loans may be borrowed in Dollars (entirely) or Euros (entirely); once so borrowed
the Borrower shall not have the right to convert from the currency borrowed into another currency
but nothing contained herein shall, or shall be interpreted to, limit the provisions of Section
4.1 pursuant to which the Administrative Agent or the Lenders may require such a conversion or
limit any provision of this Agreement which requires such a conversion. The Term Loan Commitments
shall expire concurrently with the making of the Term Loans on the Permanent Loan Commencement
Date.

     2.1.5 L/C Commitments. Subject to Section 2.3.1, the Issuing Lender agrees to
issue letters of credit, in each case containing such terms and conditions as are permitted by this
Agreement and are reasonably satisfactory to the Issuing Lender (each, a “Letter of
Credit”), at the request of and for the account of the Parent or a German Opco, as the case may
be, from time to time before the scheduled Termination Date and, as more fully set forth in
Section 2.3.2, each Permanent Lender with a Parent Revolving Commitment agrees to purchase
a participation in each Parent Letter of Credit (and such obligation to such purchase shall not be
impaired by any termination of the Parent Revolving Commitments) and each Permanent Lender with a
German Revolving Commitment agrees to purchase a participation in each German Letter of Credit (and
such obligation to such purchase shall not be impaired by any termination of the Parent
Revolving Commitments); provided, that, (i) the aggregate Dollar Equivalent (as of the most
recent Revaluation Date) of the Parent Stated Amounts and the German Stated Amounts shall not

28

 

exceed $6,000,000, (ii) the Dollar Equivalent (as of the most recent Revaluation Date) of all
Parent Revolving Outstandings shall not exceed the Parent Revolving Loan Commitments (in Dollars),
(iii) the Dollar Equivalent (as of the most recent Revaluation Date) of all German Revolving
Outstandings shall not exceed the German Revolving Loan Commitments (in Dollars), and (iv) the
Dollar Equivalent (as of the most recent Revaluation Date) of Revolving Outstandings shall not
exceed the Revolving Commitments (in Dollars). The Letters of Credit shall include the Initial
Letters of Credit. The Initial Letters of Credit (to the extent issued) shall be part of the
Parent Letters of Credit (and the Master Letter of Credit Agreement executed by the Parent shall
cover, among other things, the Initial Letters of Credit (to the extent issued) as well as any
other Parent Letters of Credit). Until the Permanent Loan Commencement Date, the only Letters of
Credit issued shall be, to the extent issued, the Initial Letters of Credit. The Letters of Credit
may be issued in Dollars or Euros.

     2.2 Loan Procedures.

     2.2.1 Various Types of Loans. The Bridge Loan shall be a Base Rate Loan. Each
Revolving Loan shall be, and the Term Loans may be divided into tranches which are, either a Base
Rate Loan or a LIBOR Loan (each a “type” of Loan), as the applicable Borrower shall specify
in the related notice of borrowing or conversion pursuant to Section 2.2.2 or
2.2.3; provided, however, that, anything contained herein to the contrary notwithstanding,
while a Loan is denominated in Euros it may only be a LIBOR Loan. LIBOR Loans in the same currency
and having the same Interest Period which expire on the same day are sometimes called a
“Group” or collectively “Groups”. Base Rate Loans and LIBOR Loans may be
outstanding at the same time, provided that not more than twelve (12) different Groups of
LIBOR Loans shall be outstanding at any one time. All borrowings, conversions and repayments of
Parent Revolving Loans shall be effected so that each Lender with a Parent Revolving Commitment
will have a ratable share (according to its Pro Rata Share) of all types and Groups of Parent
Revolving Loans; and all borrowings, conversions and repayments of German Revolving Loans shall be
effected so that each Lender with a German Revolving Commitment will have a ratable share
(according to its Pro Rata Share) of all types and Groups of German Revolving Loans.
Notwithstanding the foregoing or any other provision of this Agreement, no Borrower may select any
Interest Period for a LIBOR Loan which is longer than one month prior to the earlier of (x) 90 days
after the Closing Date and (y) the date that the Administrative Agent notifies the Parent that it
has completed its initial syndication of the Loans and the Commitments.

     2.2.2 Borrowing Procedures. The applicable Borrower who is borrowing the applicable
Loan shall give written notice (each such written notice, a “Notice of Borrowing”)
substantially in the form of Exhibit E or telephonic notice (followed immediately by a
Notice of Borrowing) to the Administrative Agent of each proposed borrowing by such Borrower not
later than (a) in the case of a Base Rate borrowing, 11:00 A.M., Chicago time, on the proposed date
of such borrowing, and (b) in the case of a LIBOR borrowing, 11:00 A.M., Chicago time, at least
three Business Days (four Business Days if the LIBOR borrowing is in Euros) prior to the proposed
date of such borrowing. Each such notice shall be effective upon receipt by the
Administrative Agent, shall be irrevocable, and shall specify the date, amount and type of
borrowing, whether (in the case of a Permanent Loan) such borrowing is to be in Dollars or Euros
(if the Notice of Borrowing does not specify a currency, then the Loan requested shall be

29

 

deemed to
be requested in Dollars except that in the case of a borrowing by a German Borrower, the Loan shall
be deemed requested in Euros), and, in the case of a LIBOR borrowing, the initial Interest Period
therefor. With respect to the making of the Term Loans, the initial German Revolving Loan and the
initial Parent Revolving Loan, any additional notice requirements under Section 12.3 shall
also be satisfied. Promptly upon receipt of such notice, the Administrative Agent shall advise
each Lender thereof. Not later than 1:00 P.M., Chicago time, on the date of a proposed borrowing,
each Lender shall provide the Administrative Agent at the office specified by the Administrative
Agent with immediately available funds, in the applicable currency, covering such Lender’s Pro Rata
Share of such borrowing and, so long as the Administrative Agent has not received written notice
that the conditions precedent set forth in Section 11 with respect to such borrowing have
not been satisfied, the Administrative Agent shall pay over the funds received by the
Administrative Agent to the applicable Borrower who is borrowing the applicable Loan on the
requested borrowing date. Each borrowing shall be on a Business Day. Each Base Rate borrowing
shall be in an aggregate amount of at least $1,000,000 and an integral multiple of $500,000, and
each LIBOR borrowing shall be in an aggregate amount of at least $1,000,000 and an integral
multiple of at least $500,000.

     2.2.3 Conversion and Continuation Procedures. (a) Subject to Section 2.2.1,
the applicable Borrower may, upon irrevocable written notice to the Administrative Agent in
accordance with clause (b) below:

          (A) elect, as of any Business Day, to convert any Permanent Loans of any type (or any part
thereof) in an aggregate amount not less than $1,000,000 or a higher integral multiple of $500,000,
as the case may be, into Loans of the other type (except that the Borrower may not elect to convert
any LIBOR Loan denominated in Euros into a Base Rate Loan); or

          (B) elect, as of the last day of the applicable Interest Period, to continue any LIBOR Loans
having Interest Periods expiring on such day (or any part thereof) in an aggregate amount not less
than $1,000,000 or a higher integral multiple of $500,000, as the case may be, for a new Interest
Period;

provided that after giving effect to any prepayment, conversion or continuation, the
aggregate principal amount of each Group of LIBOR Loans shall be at least $1,000,000 and an
integral multiple of $500,000.

     (b) The applicable Borrower shall give written notice (each such written notice, a “Notice
of Conversion/Continuation”) substantially in the form of Exhibit F or telephonic
notice (followed immediately by a Notice of Conversion/Continuation) to the Administrative Agent of
each proposed conversion or continuation not later than (i) in the case of conversion into Base
Rate Loans, 11:00 A.M., Chicago time, on the proposed date of such conversion and (ii) in the case
of conversion into or continuation of LIBOR Loans, 11:00 A.M., Chicago time, at least three
Business Days (four Business Days for LIBOR Loans in Euros) prior to the proposed date of such
conversion or continuation, specifying in each case:

          (A) the proposed date of conversion or continuation;

30

 

          (B) the aggregate amount of Loans to be converted or continued;

          (C) the type of Loans resulting from the proposed conversion or continuation; and

          (D) in the case of conversion into, or continuation of, LIBOR Loans, the duration of the
requested Interest Period therefor.

     (c) If upon the expiration of any Interest Period applicable to LIBOR Loans, the applicable
Borrower has failed to select timely a new Interest Period to be applicable to such LIBOR Loans
(and assuming the Borrower has not elected to convert the LIBOR Loan to a Base Rate Loan pursuant
to the provisions hereof), the applicable Borrower shall be deemed to have selected an Interest
Period of one month.

     (d) The Administrative Agent will promptly notify each Lender of its receipt of a notice of
conversion or continuation pursuant to this Section 2.2.3 or, if no timely notice is
provided by the applicable Borrower, of the details of any automatic conversion.

     (e) Any conversion of a LIBOR Loan on a day other than the last day of an Interest Period
therefor shall be subject to Section 8.4.

     (f) Once borrowed in one currency, the Term Loans may not be converted or continued by Newco
into another currency. The Borrowers shall not have the right to convert or continue a Revolving
Loan into a Revolving Loan denominated in a different currency, but instead the applicable Borrower
must prepay the applicable Revolving Loan in the original currency of such Loan and then reborrow
(subject to the terms and conditions hereof) in the other currency. Nothing contained in this
Agreement shall, or shall be interpreted to, impair any rights of the Administrative Agent or
Lenders under the Loan Documents to require any conversion of a Loan from one currency to another
currency pursuant to Section 4.1 or to impair any provision of this Agreement which
requires such a conversion.

     2.2.4 [Reserved].

     2.3 Letter of Credit Procedures.

     2.3.1 L/C Applications. The Parent and each German Opco shall respectively execute
and deliver to the Issuing Lender a Master Letter of Credit Agreement as in effect from time to
time. The Parent (in the case of Parent Letters of Credit) or the applicable German Opco (in the
case of German Letters of Credit requested by such applicable German Opco) shall give notice to the
Administrative Agent and the Issuing Lender of the proposed issuance of each Letter of Credit on a
Business Day which is at least three (or, in the case of a Letter of Credit to be issued in Euros,
four) Business Days (or such lesser number of days as the Administrative Agent and the
Issuing
Lender shall agree in any particular instance in their sole discretion) prior to the proposed date
of issuance of such Letter of Credit. Each such notice shall be accompanied by an L/C Application,
duly executed by the Parent (in the case of Parent Letters of Credit) or
the applicable German Opco (in the case of German Letters of Credit requested by such
applicable German Opco) and in all respects satisfactory to the Administrative Agent and the

31

 

Issuing Lender, together with such other documentation as the Administrative Agent or the Issuing
Lender may reasonably request in support thereof, it being understood that each L/C Application
shall specify, among other things, the date on which the proposed Letter of Credit is to be issued,
the expiration date of such Letter of Credit (which shall not be later than the scheduled
Termination Date (unless such Letter of Credit is Cash Collateralized)), the currency (Dollars or
Euros) in which the Letter of Credit is to be issued, whether such Letter of Credit is to be
transferable in whole or in part and the nature of the transaction to be supported thereby. Any
Letter of Credit outstanding after the scheduled Termination Date which is Cash Collateralized for
the benefit of the Issuing Lender shall be the sole responsibility of the Issuing Lender. So long
as the Issuing Lender has not received written notice that the conditions precedent set forth in
Section 12 with respect to the issuance of such Letter of Credit have not been satisfied,
the Issuing Lender shall issue such Letter of Credit on the requested issuance date. The Issuing
Lender shall promptly advise the Administrative Agent of the issuance of each Letter of Credit and
of any amendment thereto, extension thereof or event or circumstance changing the amount available
for drawing thereunder. In the event of any inconsistency between the terms of the Master Letter
of Credit Agreement, any L/C Application and the terms of this Agreement, the terms of this
Agreement shall control. Except as may otherwise agreed by the Administrative Agent and the
Issuing Lender, each Letter of Credit shall be in an initial face amount greater than $10,000.

     2.3.2 Participations in Letters of Credit. Subject to the proviso at the end of this
sentence, concurrently with the issuance of each Parent Letter of Credit, the Issuing Lender shall
be deemed to have sold and transferred to each Permanent Lender with a Parent Revolving
Commitment, and each such Permanent Lender shall be deemed irrevocably and unconditionally to have
purchased and received from the Issuing Lender, without recourse or warranty, an undivided interest
and participation, to the extent of such Lender’s Pro Rata Share, in such Parent Letter of Credit
and the Parent’s reimbursement obligations with respect thereto; provided, that, with respect to
the Initial Letters of Credit, (i) no such sale, transfer, purchase or receipt shall be deemed to
have occurred unless and until the Permanent Loan Commencement Date occurs and (ii) effective as of
the Permanent Loan Commencement Date such sale, transfer, purchase and receipt shall automatically
and without further action be deemed to have taken place with respect to the Initial Letters of
Credit. Concurrently with the issuance of each German Letter of Credit, the Issuing Lender shall
be deemed to have sold and transferred to each Permanent Lender with a German Revolving
Commitment, and each such Permanent Lender shall be deemed irrevocably and unconditionally to have
purchased and received from the Issuing Lender, without recourse or warranty, an undivided interest
and participation, to the extent of such Lender’s Pro Rata Share, in such German Letter of Credit
and the applicable German Opco’s reimbursement obligations with respect thereto. Subject to the
proviso at the end of this sentence, if the Parent (in the case of Parent Letters of Credit) or the
applicable German Opco (in the case of German Letters of Credit requested by such applicable German
Opco) does not pay any reimbursement obligation when due, the Parent (in the case of Parent Letters
of Credit) or the applicable German Opco (in the case of German Letters of Credit requested by such
applicable German Opco) shall be deemed to have immediately requested that the Lenders make a
Parent Revolving Loan (in the case of a reimbursement obligation of the
Parent in connection with a Parent Letter of Credit) or a German Revolving Loan to the
applicable German Opco (in the case of a reimbursement obligation of such German Opco in

32

 

connection
with a German Letter of Credit requested by such German Opco) which is a Base Rate Loan made in
Dollars and in a principal amount in the then Dollar Equivalent (as of the most recent Revaluation
Date if the applicable drawing was in Euros) equal to such reimbursement obligations; provided,
that, (i) the foregoing provisions of this sentence shall not apply to the Initial Letters of
Credit unless and until the Permanent Loan Commencement Date occurs and (ii) effective as of the
Permanent Loan Commencement Date such provisions shall automatically and without further action be
deemed to apply to the Initial Letters of Credit. The Administrative Agent shall promptly notify
the Lenders of such deemed request and, without the necessity of compliance with the requirements
of Section 2.2.2, Section 12.2 or otherwise (and without regard to whether the
applicable Revolving Commitment then exists) each Lender shall make available to the Administrative
Agent its Pro Rata Share of such Loan (to the extent such Loan is not actually made, such
reimbursement obligations shall survive, regardless of the reason such Loan is not actually made).
The proceeds of such Loan shall be paid over by the Administrative Agent to the Issuing Lender for
the account of the applicable Borrower in satisfaction of such reimbursement obligations. For the
purposes of this Agreement, the unparticipated portion of each Letter of Credit shall be deemed to
be the Issuing Lender’s “participation” therein. The Issuing Lender hereby agrees, upon request of
the Administrative Agent or any Permanent Lender, to deliver to the Administrative Agent or such
Lender a list of all outstanding Letters of Credit issued by the Issuing Lender, together with such
information related thereto as the Administrative Agent or such Lender may reasonably request.

     2.3.3 Reimbursement Obligations. (a) The Parent (in the case of Parent Letters of
Credit) or the applicable German Opco (in the case of German Letters of Credit requested by such
applicable German Opco) hereby unconditionally and irrevocably agrees to reimburse the Issuing
Lender for each payment or disbursement made by the Issuing Lender under any such Letter of Credit
honoring any demand for payment made by the beneficiary thereunder, in each case on the date that
such payment or disbursement is made (such reimbursement to be made in the currency in which such
payment or disbursement was made unless (in the case of a payment or disbursement in Euros) the
Issuing Lender has notified the applicable Borrower that it requires such reimbursement to be in
Dollars in which case such reimbursement shall be in Dollars in the Dollar Equivalent of the amount
of such payment or disbursement). Any amount not reimbursed by 11:00 a.m. (Chicago time) on the
date of such payment or disbursement shall bear interest from the date of such payment or
disbursement to the date that the Issuing Lender is reimbursed by the applicable Borrower therefor
(if such reimbursement is made on the date such payment or disbursement is made but after 11:00
a.m. (Chicago time) on such date, the applicable Borrower shall owe one day’s worth of interest),
payable on demand, at a rate per annum equal to the Base Rate from time to time in effect
plus the Base Rate Margin from time to time in effect plus (if the Required Lenders
so elect), beginning on the third Business Day after receipt of notice from the Issuing Lender of
such payment or disbursement, an additional 2% per annum (and in connection with the provisions of
this sentence the Issuing Lender may require any reimbursement obligations in Euros to be converted
into Dollars at the Dollar Equivalent and the applicable Borrower shall indemnify and hold the
applicable Lenders harmless from any loss resulting from such conversion). The Issuing Lender
shall notify the Parent (in the case of Parent Letters of Credit) or the applicable German Opco (in
the case of German Letters of Credit requested by
such applicable German Opco) and the Administrative Agent whenever any demand for payment is
made under any Letter of Credit by the beneficiary thereunder; provided that the failure of
the

33

 

Issuing Lender to so notify the applicable Borrower or the Administrative Agent shall not
affect the rights of the Issuing Lender or the Lenders in any manner whatsoever.

          (b) The Parent’s (in the case of Parent Letters of Credit) or the applicable German Opco’s (in
the case of German Letters of Credit requested by such applicable German Opco) reimbursement
obligations hereunder shall be irrevocable and unconditional under all circumstances, including (a)
any lack of validity or enforceability of any Letter of Credit, this Agreement or any other Loan
Document, (b) the existence of any claim, set-off, defense or other right which the Parent or any
of its Subsidiaries may have at any time against a beneficiary named in a Letter of Credit, any
transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), the
Administrative Agent, the Issuing Lender, any Lender or any other Person, whether in connection
with any Letter of Credit, this Agreement, any other Loan Document, the transactions contemplated
herein or any unrelated transactions (including any underlying transaction between the Parent or
any of its Subsidiaries and the beneficiary named in any Letter of Credit), (c) the validity,
sufficiency or genuineness of any document which the Issuing Lender has determined complies on its
face with the terms of the applicable Letter of Credit, even if such document should later prove to
have been forged, fraudulent, invalid or insufficient in any respect or any statement therein shall
have been untrue or inaccurate in any respect, (d) the failure of any requested drawing under any
Letter of Credit to comply with the requirements of any Letter of Credit, (e) the surrender or
impairment of any security for the performance or observance of any of the terms hereof or (f) any
other circumstance that the Master Letter of Credit Agreement provides will not affect such
reimbursement. Without limiting the foregoing, no action or omission whatsoever by the
Administrative Agent or any Lender (excluding any Lender in its capacity as the Issuing Lender)
under or in connection with any Letter of Credit or any related matters shall result in any
liability of the Administrative Agent or any Lender to the Parent (or any of its Subsidiaries), or
relieve the Parent (or any of its applicable Subsidiaries) of any of its obligations under any Loan
Document to any such Person.

     2.3.4 Funding by Lenders to Issuing Lender. If the Issuing Lender makes any payment
or disbursement under any Letter of Credit and (i) (a) the Parent (in the case of Parent Letters of
Credit) or the applicable German Opco (in the case of German Letters of Credit requested by such
applicable German Opco) has not reimbursed the Issuing Lender in full for such payment or
disbursement by 11:00 A.M., Chicago time, on the date of such payment or disbursement and (b) a
Parent Revolving Loan (in the case of Parent Letters of Credit) or a German Revolving Loan to the
applicable German Opco (in the case of German Letters of Credit requested by such applicable German
Opco) may not be made (or cannot be made) in accordance with Section 2.3.2 (it being the
intent and agreement under this Agreement that if the event described in clause (a) occurs, either
a Revolving Loan will be made or the provisions of this sentence below with respect to payments
regarding participations shall apply) or (ii) any reimbursement received by the Issuing Lender from
the Parent (in the case of Parent Letters of Credit) or the applicable German Opco (in the case of
German Letters of Credit requested by such applicable German Opco) is or must be returned or
rescinded upon or during any bankruptcy or reorganization of the Parent (in the case of Parent
Letters of Credit) or the applicable German Opco (in the case of German Letters of Credit requested
by such applicable
German Opco) or otherwise, each other Lender with a Parent Revolving Commitment (in the case
of Parent Letters of Credit) or a German Revolving Commitment (in the case of German

34

 

Letters of
Credit) shall be obligated to pay to the Administrative Agent for the account of the Issuing
Lender, in full or partial payment of the purchase price of its participation in such Letter of
Credit, its Pro Rata Share of such payment or disbursement (but no such payment shall diminish the
obligations of the Parent (in the case of Parent Letters of Credit) or the applicable German Opco
(in the case of German Letters of Credit requested by such applicable German Opco) under
Section 2.3.3), and, upon notice from the Issuing Lender, the Administrative Agent shall
promptly notify each such other Lender thereof. Each such other Lender irrevocably and
unconditionally agrees to so pay to the Administrative Agent in immediately available funds for the
Issuing Lender’s account in Dollars the Dollar Equivalent of the amount of such other Lender’s Pro
Rata Share of such payment or disbursement (provided, that if such payment or disbursement was made
by the Issuing Lender in Euros then, if the Issuing Lender so elects, such payment by the other
Lenders shall be in Euros and not in Dollars). If and to the extent any such Lender shall not have
made such amount available to the Administrative Agent by 2:00 P.M., Chicago time, on the Business
Day on which such Lender receives notice from the Administrative Agent of such payment or
disbursement (it being understood that any such notice received after noon, Chicago time, on any
Business Day shall be deemed to have been received on the next following Business Day), such Lender
agrees to pay interest on such amount to the Administrative Agent for the Issuing Lender’s account
forthwith on demand, for each day from the date such amount was to have been delivered to the
Administrative Agent to the date such amount is paid, at a rate per annum equal to (a) for the
first three days after demand, the Federal Funds Rate from time to time in effect and (b)
thereafter, the Base Rate from time to time in effect. Any such Lender’s failure to make available
to the Administrative Agent its Pro Rata Share of any such payment or disbursement shall not
relieve any such other Lender of its obligation hereunder to make available to the Administrative
Agent such other Lender’s Pro Rata Share of such payment, but no Lender shall be responsible for
the failure of any other Lender to make available to the Administrative Agent such other Lender’s
Pro Rata Share of any such payment or disbursement. Notwithstanding the foregoing, (i) the
foregoing provisions of this Section 2.3.4 shall not apply to the Initial Letters of Credit
unless and until the Permanent Loan Commencement Date occurs and (ii) effective as of the Permanent
Loan Commencement Date such provisions shall automatically and without further action be deemed to
apply to the Initial Letters of Credit.

     2.3.5 Cash Collateralize. Without limiting any other obligations under the Loan
Documents to Cash Collateralize, the Parent shall Cash Collateralize any Parent Letters of Credit
outstanding on the Termination Date and each German Opco shall Cash Collateralize any German
Letters of Credit requested by such German Opco outstanding on the Termination Date. If for any
reason the Permanent Loan Commencement Date does not occur by December 29, 2006, the Parent shall
Cash Collateralize all of the Initial Letters of Credit.

     2.4 Commitments Several. The failure of any Lender to make a requested Loan on any date
shall not relieve any other Lender of its obligation (if any) to make a Loan on such date, but no
Lender shall be responsible for the failure of any other Lender to make any Loan to be made by such
other Lender.

     2.5 Certain Conditions. Except as otherwise provided in Section 2.3.4 of this
Agreement, no Lender shall have an obligation to make any Loan, or to permit the continuation

35

 

of or
any conversion into any LIBOR Loan, and the Issuing Lender shall not have any obligation to issue
any Letter of Credit, if an Event of Default or Unmatured Event of Default exists; provided,
however, that in the case of a LIBOR Loan in Euros such LIBOR Loan shall (subject to the Lenders
right of conversion under Section 4.1 and other applicable provisions of this Agreement regarding
conversion) be permitted to be continued as a LIBOR Loan even if there is an Event of Default or
Unmatured Event of Default (nothing contained in this proviso shall be interpreted or construed to
limit any rights or remedies of the Lenders or the Administrative Agent relating to such Event of
Default or Unmatured Event of Default).

     SECTION 3 EVIDENCING OF LOANS.

     3.1 Notes. The Bridge Loan shall be evidenced by a Note of the Parent in the form of
Exhibit A-1 hereto (the “Bridge Loan Note”). The Permanent Loans of each Permanent
Lender made to each Borrower shall be evidenced by a Note of such Borrower in the form of
Exhibit A-2 hereto (each, a “Permanent Loans Note”), with appropriate insertions,
payable to such Permanent Lender or its registered assigns.

     3.2 Recordkeeping. The Administrative Agent, on behalf of each Lender, shall record in its
records, the date and amount of each Loan made by each Lender, the currency thereof, each repayment
or conversion thereof and, in the case of each LIBOR Loan, the dates on which each Interest Period
for such Loan shall begin and end. The aggregate unpaid principal amount so recorded shall be
rebuttably presumptive evidence of the principal amount of the Loans owing and unpaid. The failure
to so record any such amount or any error in so recording any such amount shall not, however, limit
or otherwise affect the Obligations of any Borrower hereunder or under any Note to repay the
principal amount of the Loans hereunder, together with all interest accruing thereon.

     SECTION 4 INTEREST.

     4.1 Interest Rates. The Parent (in the case of the Bridge Loan and the Parent Revolving
Loans), Newco in the case of the Term Loans and the Initial Revolving German Loan, BGG in the case
of German Revolving Loans borrowed by it, and Oxy-Dry GmbH in the case of German Revolving Loans
borrowed by it, as the case may be, promises (severally and not jointly, provided that nothing
contained herein shall be interpreted to limit the provisions of the Guaranty and Collateral
Agreement) to pay interest on the unpaid principal amount of each Loan borrowed by it for the
period commencing on the date of such Loan until such Loan is paid in full as follows:

     (a) at all times while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of
the Base Rate from time to time in effect plus the Base Rate Margin from time to time in effect;
and

     (b) at all times while such Loan is a LIBOR Loan, at a rate per annum equal to the sum of the
LIBOR Rate applicable to each Interest Period for such Loan plus the LIBOR Margin from time to time
in effect;

36

 

provided that at any time an Event of Default exists, if the Required Lenders so elect, the
interest rate applicable to each Loan shall be increased by 2% (and, in the case of Obligations of
a Borrower not bearing interest, such Obligations shall bear interest (and such Borrower shall pay
such interest) at the Base Rate applicable to Revolving Loans plus 2%), and in connection with same
the Required Lenders can, upon written notice to the applicable Borrower, require that any Loans in
Euros be converted to Dollars (and upon such conversion will become Base Rate Loans) and the
applicable Borrower(s) shall indemnify and hold the applicable Lenders harmless from any loss
resulting from such conversion, provided further that such increase may thereafter
be rescinded by the Required Lenders (acting in their discretion), notwithstanding Section
15.1. Notwithstanding the foregoing, upon the occurrence of an Event of Default under
Sections 13.1.1 or 13.1.4, such increase shall occur automatically,
provided further that such increase may thereafter be rescinded by the Required
Lenders (acting in their discretion), notwithstanding Section 15.1.

     4.2 Interest Payment Dates. Accrued interest on each Base Rate Loan shall be payable in
arrears on the last day of each calendar quarter and at maturity. Accrued interest on each LIBOR
Loan shall be payable on the last day of each Interest Period relating to such Loan (and, in the
case of a LIBOR Loan with an Interest Period in excess of three months, on the three-month
anniversary of the first day of such Interest Period), and at maturity. After maturity, and at any
time that the interest rate(s) have been increased an additional 2% per annum pursuant to the last
paragraph of Section 4.1, accrued interest on all Loans shall be payable on demand.

     4.3 Setting and Notice of LIBOR Rates. The applicable LIBOR Rate for each Interest Period
shall be determined by the Administrative Agent, and notice thereof shall be given by the
Administrative Agent promptly to the applicable Borrower and each Lender. Each determination of
the applicable LIBOR Rate by the Administrative Agent shall be conclusive and binding upon the
parties hereto, in the absence of demonstrable error. The Administrative Agent shall, upon written
request of the applicable Borrower or any Lender, deliver to the applicable Borrower or such Lender
a statement showing the computations used by the Administrative Agent in determining any applicable
LIBOR Rate hereunder.

     4.4
Computation of Interest. Interest on all Loans shall be computed for the actual number of days elapsed on the basis of
a year of 360 days. The applicable interest rate for each Base Rate Loan shall change
simultaneously with each change in the Base Rate. The applicable interest rate for each LIBOR Loan
shall remain fixed for the duration of the Interest Period applicable thereto (provided, that
nothing contained in this sentence shall, or shall be interpreted to, limit the provisions of
Section 4.1).

     4.5 Maximum Rate.

Notwithstanding anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious
interest permitted by applicable law (the “Maximum Rate”). If the Administrative Agent or any
Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall
be applied to the principal of the Loans owing by the applicable Borrower or, if it exceeds such
unpaid principal, refunded to the applicable Borrower. In determining whether the interest

37

 

contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum
Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that
is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or
unequal parts the total amount of interest throughout the contemplated term of the applicable
Borrower’s Obligations hereunder.

     SECTION 5 FEES.

     5.1 Non-Use Fees. The Parent agrees to pay to the Administrative Agent for the account of
each Permanent Lender with a Parent Revolving Commitment a non-use fee, for the period from the
Permanent Loan Commencement Date to the Termination Date, at the Non-Use Fee Rate in effect from
time to time of such Lender’s Pro Rata Share (as adjusted from time to time) of the unused amount
of the Parent Revolving Commitments. The German Borrowers agree, on a joint and several basis, to
pay to the Administrative Agent for the account of each Permanent Lender with a German Revolving
Commitment a non-use fee, for the period from the Permanent Loan Commencement Date to the
Termination Date, at the Non-Use Fee Rate in effect from time to time of such Lender’s Pro Rata
Share (as adjusted from time to time) of the unused amount of the German Revolving Commitments.
For purposes of calculating usage under this Section, the Parent Revolving Commitment shall be
deemed used to the extent of the Parent Revolving Outstandings and the German Revolving Commitment
shall be deemed used to the extent of the German Revolving Outstandings. Such non-use fees shall
be payable in arrears on the last day of each calendar quarter and on the Termination Date for any
period then ending for which such non-use fee shall not have previously been paid. The non-use fee
shall be computed for the actual number of days elapsed on the basis of a year of 360 days.

     5.2 Letter of Credit Fees.

     (a) (i) The Parent agrees to pay to the Administrative Agent for the account of each Permanent
Lender with a Parent Revolving Commitment a letter of credit fee for each Parent Letter of Credit
equal to the L/C Fee Rate in effect from time to time of such Lender’s Pro Rata Share (as adjusted
from time to time) of the undrawn amount of such Letter of Credit and (ii) for each German Letter
of Credit, the German Opco who requested such German Letter of Credit agrees to pay to the
Administrative Agent for the account of each Permanent Lender with a German Revolving Commitment a
letter of credit fee equal to the L/C Fee Rate in effect from time to time of such Lender’s Pro
Rata Share (as adjusted from time to time) of the undrawn amount of such German Letter of Credit;
provided, that, with respect to the Initial Letters of Credit, for the period prior to the
Permanent Loan Closing Date, such letter of credit fee shall accrue for the benefit of and shall be
paid for the account of the Issuing Lender (and not the Permanent Lenders); provided
further that, if the Required Lenders so elect, the rate applicable to each Letter of Credit shall
be increased by 2% at any time that an Event of Default exists. All such letter of credit fees
shall be computed for the actual number of days elapsed on the basis of a year of 360 days (for the
avoidance of doubt, letter of credit fees shall continue to accrue on the undrawn amounts of
Letters of Credit for as long as such undrawn amounts are outstanding notwithstanding the fact that
Parent Revolving Commitments (in the case of Parent Letters of Credit) or German Revolving
Commitments (in the case of the German Letters of Credit) may

38

 

have been terminated). Such letter
of credit fee shall be payable in arrears on the last day of each calendar quarter and on the
Termination Date (or such later date on which such Letter of Credit expires or is terminated) for
the period from the date of the issuance of each Letter of Credit (or the last day on which the
letter of credit fee was paid with respect thereto) to the date such payment is due or, if earlier,
the date on which such Letter of Credit expired or was terminated; provided, that, if not sooner
paid, the Parent shall pay on December 29, 2006 to the Issuing Lender any fees accruing on the
Initial Letters of Credit prior to the Permanent Loan Commencement Date (if any).

     (b) In addition, with respect to each Letter of Credit, the applicable Borrower requesting the
applicable Letter of Credit agrees to pay to the Issuing Lender, for its own account, (i) such
fees and expenses as the Issuing Lender customarily requires in connection with the issuance,
negotiation, advising, payment, confirming (if applicable), processing and/or administration of
letters of credit in similar situations and (ii) a letter of credit fronting fee in the amount and
at the times agreed to by the Parent and the Issuing Lender (including any set forth in the Agent
Fee Letter).

     5.3 Administrative Agent’s Fees. The Parent agrees to pay to the Administrative Agent such
agent’s fees as are set forth in the Agent Fee Letter.

     SECTION 6 REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS.

     6.1 Reduction or Termination of the Revolving Commitments.

     6.1.1 Voluntary Reduction or Termination of the Revolving Commitments. The Parent may
from time to time on at least four Business Days’ prior written notice received by the
Administrative Agent (which shall promptly advise each Permanent Lender thereof) permanently reduce
the Parent Revolving Commitments to an amount not less than the Parent Revolving Outstandings. The
German Opcos may from time to time on at least four Business Days’ prior written notice received by
the Administrative Agent (which shall promptly advise each Permanent Lender thereof) permanently
reduce the German Revolving Commitments to an amount not less than the German Revolving
Outstandings. Any such reduction under this Section 6.1.1 shall be in an amount not less
than $1,000,000 or a higher integral multiple of $500,000. Concurrently with any reduction of the
Parent Revolving Commitment to zero, the Parent shall pay all interest on the Parent Revolving
Loans, all non-use fees (relating to the Parent Revolving Commitment) and all letter of credit fees
(relating to the Parent Letters of Credit) and shall Cash Collateralize in full all obligations
arising with respect to the Parent Letters of Credit. Concurrently with any reduction of the
German Revolving Commitment to zero, (i) the German Opcos shall pay all interest on the German
Revolving Loans borrowed by them, all non-use fees (relating to the German Revolving Commitment)
and all letter of credit fees (relating to the German Letters of Credit) and shall Cash
Collateralize in full all obligations arising with respect to the German Letters of Credit and (ii)
Newco shall pay all interest on the Initial German Revolving Loan.

39

 

     6.1.2 Mandatory Reductions of Revolving Commitment. On the date of any Mandatory
Prepayment Event, the Revolving Commitments shall be permanently reduced (pro-rata across the
Parent Revolving Commitments and the German Revolving Commitments) by an amount (if any) equal to
the Designated Proceeds of such Mandatory Prepayment Event over the amount (if any) applied to
prepay Term Loans pursuant to Section 6.2.2.

     6.1.3 All Reductions of the Revolving Commitments. All reductions of the Parent
Revolving Commitments shall reduce the Parent Revolving Commitments ratably among the Permanent
Lenders with Parent Revolving Commitments according to their respective Pro Rata Shares. All
reductions of the German Revolving Commitments shall reduce the German Revolving Commitments
ratably among the Permanent Lenders with German Revolving Commitments according to their respective
Pro Rata Shares.

     6.2 Prepayments.

     6.2.1 Voluntary Prepayments. The applicable Borrower who has borrowed the applicable
Loan may from time to time prepay the Loans borrowed by it in whole or in part; provided
that such Borrower shall give the Administrative Agent (which shall promptly advise each Lender)
notice thereof not later than 11:00 A.M., Chicago time, on the day of such prepayment (which shall
be a Business Day) (except that if the case of a prepayment of a Loan in Euros that is being made
on a day other than the last day of an Interest Period the applicable Borrower shall give four (4)
Business Days prior written notice to the Administrative Agent of such prepayment), specifying the
Loans to be prepaid and the date and amount of prepayment. Any such partial prepayment shall be in
an amount equal to $500,000 or a higher integral multiple of $500,000.

     6.2.2 Mandatory Prepayments.

     (a) The Parent and Newco shall cause a prepayment of the Term Loans until paid in full upon
the occurrence of any of the following (each a “Mandatory Prepayment Event”) at the
following times and in the following amounts (such applicable amounts being referred to as
“Designated Proceeds”):

	 	(i)	 	Concurrently with the receipt by the Parent or any Subsidiary
of the Parent of any Net Cash Proceeds from any Asset Disposition, in an amount
equal to 100% of such Net Cash Proceeds except (subject to clause (v) of
Section 11.5) that the first $500,000 (in the aggregate) of Net Cash Proceeds
in any Fiscal Year do not have to be applied to such prepayment (nor, for the
avoidance of doubt, to any mandatory reduction under Section 6.1.2).

	 	(ii)	 	Concurrently with the receipt by the Parent or any Subsidiary
of the Parent of any Net Cash Proceeds from any issuance of Capital Securities
of the Parent or any Subsidiary of the Parent (excluding (x) any issuance of
Capital Securities pursuant to any employee or director option program, benefit
plan or compensation program and (y) any issuance by a

40

 

	 	 	 	Subsidiary of the Parent
to the Parent or to another Subsidiary of the Parent), in an amount equal to
100% of such Net Cash Proceeds.
	 
	 	(iii)	 	Concurrently with the receipt by the Parent or any Subsidiary
of the Parent of any Net Cash Proceeds from any issuance of any Debt of the
Parent or any Subsidiary of the Parent (excluding Debt permitted by clauses
(a) through (k) of Section 11.1), in an amount equal to
100% of such Net Cash Proceeds.

Notwithstanding the foregoing, if the Mandatory Prepayment Event occurs while the Bridge Loan is
outstanding, the Designated Proceeds shall immediately be applied to the payment or prepayment, as
the case may be, of the Bridge Loan.

     (b) If at any time the Dollar Equivalent (as of the most recent Revaluation Date) of the
Parent Revolving Outstandings exceeds 105% of the aggregate amount of the Parent Revolving
Commitments, the Parent shall immediately prepay the Parent Revolving Loans and Cash Collateralize
the outstanding Parent Letters of Credit, or do a combination of the foregoing (provided, that if
so instructed by the Administrative Agent, prepayments shall be made to eliminate the excess before
any such Cash Collateralization), in an amount sufficient to eliminate such excess. If at any time
the Dollar Equivalent (as of the most recent Revaluation Date) of the German Revolving Outstandings
exceeds 105% of the aggregate amount of the German Revolving Commitments, the German Opcos shall
immediately prepay the German Revolving Loans borrowed by the German Opcos and Cash Collateralize
the outstanding German Letters of Credit, or do a combination of the foregoing (provided, that if
so instructed by the Administrative Agent, prepayments shall be made to eliminate the excess before
any such Cash Collateralization is so used), in an amount sufficient to eliminate such excess
(provided that
Newco can, if it so elects, contribute towards eliminating such excess by prepaying the
Initial German Revolving Loan).

     (c) If on any day on which the Revolving Commitments are reduced pursuant to Section
6.1.2 the Revolving Outstandings exceeds the Revolving Commitments, the Parent shall cause the
immediate prepayment of the Revolving Loans or Cash Collateralization of the outstanding Letters of
Credit, or do a combination of the foregoing (provided, that if so instructed by the Administrative
Agent, prepayments shall be made to eliminate the excess before any such Cash Collateralization),
in an amount sufficient to eliminate such excess. Such prepayments and Cash Collateralization
shall be made pro-rata across the Parent Revolving Outstandings and the German Revolving
Outstandings.

     (d) Notwithstanding anything herein to the contrary, if on any day on which the Term Loans
(or, in the case of a prepayments under Sections 6.2.2(b) or 6.2.2(c), the Revolving Loans)
would otherwise be required to be prepaid pursuant to Sections 6.2.2(a), (b) or (c) (for purposes
of this Section 6.2.2(d), each, a “Mandatory Prepayment Date”), the amount of such required
prepayment exceeds the then outstanding aggregate principal amount of the Term Loans that
constitute (or, in the case of prepayments under Sections 6.2.2(b) or 6.2.2(c), the amount
of the Revolving Loans that constitute) Base Rate Loans, and no Unmatured Event of Default or Event
of Default is then continuing, then on such Prepayment Date the Borrower making the applicable

41

 

prepayment may, at its option, deposit Dollars or Euros, as applicable, into a cash collateral
account maintained and controlled by the Administrative Agent in an amount equal to such excess
(and such amount shall be part of the Collateral under the Guaranty and Collateral Agreement). If
such Borrower makes such deposit then (i) only the outstanding Base Rate Loans shall be required to
be prepaid on such Prepayment Date (and the LIBOR Loans shall not be considered prepaid and shall
continue to bear interest) and (ii) on the last day of each Interest Period (with respect to any
LIBOR Loan(s)) that ends on or after such Prepayment Date, the Administrative Agent is irrevocably
authorized and directed to apply funds from such cash collateral account (and liquidate investments
held in such cash collateral account as necessary with the applicable Borrower being responsible
for any loss resulting from such liquidation) to prepay the LIBOR Loan(s) for which the Interest
Period is then ending until the aggregate of the prepayment on the Base Rate Loans pursuant to
clause (i) above plus the amounts actually so applied under this clause (ii) equals the prepayment
which would have been required to be made on such Prepayment Date but for the operation of this
Section 6.2.2(d).

     6.3 Manner of Prepayments.

     6.3.1 All Prepayments. Any voluntary partial prepayment of a Group of LIBOR Loans
shall be subject to the proviso to Section 2.2.3(a). Any prepayment of a LIBOR Loan on a
day other than the last day of an Interest Period therefor shall include interest on the principal
amount being repaid and shall be subject to Section 8.4. All prepayments of Term Loans
shall be applied in the inverse order of maturity. Except as otherwise provided by this Agreement,
all principal payments in respect of the Loans shall be applied first, to repay outstanding Base
Rate Loans and then to repay outstanding LIBOR Rate Loans in direct order of Interest Period
maturities.

     6.4 Repayments.

     6.4.1 Revolving Loans. The Revolving Loans of each Lender shall be paid in full by
the Borrower who borrowed such Revolving Loans, and the Revolving Commitments shall terminate, on
the Termination Date.

     6.4.2 Term Loans. The Term Loan of each Permanent Lender shall be paid in
installments equal to such Lender’s Pro Rata Share of the aggregate principal amount of the
installments of the Term Loans as follows:

	 	 	 	 	 
	Payment Date	 	Amount
	02/21/07
	 	$	375,000	 
	05/21/07
	 	$	375,000	 
	08/21/07
	 	$	375,000	 
	11/21/07
	 	$	375,000	 
	02/21/08
	 	$	625,000	 
	05/21/08
	 	$	625,000	 
	08/21/08
	 	$	625,000	 
	11/21/08
	 	$	625,000	 
	02/21/09
	 	$	750,000	 

42

 

	 	 	 	 	 
	Payment Date	 	Amount
	05/21/09
	 	$	750,000	 
	08/21/09
	 	$	750,000	 
	11/21/09
	 	$	750,000	 
	02/21/10
	 	$	875,000	 
	05/21/10
	 	$	875,000	 
	08/21/10
	 	$	875,000	 
	11/21/10
	 	$	875,000	 
	02/21/11
	 	$	1,125,000	 
	05/21/11
	 	$	1,125,000	 
	08/21/11
	 	$	1,125,000	 
	11/21/11
	 	$	1,125,000	 

     In the event that the Term Loans are made in Euros, the above installment payments shall be
in the Euro Currency Equivalent of such installment payments as determined by the Administrative
Agent as of the making of the Term Loans. If required by the Administrative Agent, Newco shall
confirm such Euro Currency Equivalents in writing (which, if requested by the Administrative Agent
shall be in the form of an amendment to this Section 6.4.2) but the failure of the
Administrative Agent to so request or the Borrowers to so confirm shall not impair any obligation
of Newco under this Agreement (including the obligation to pay such installments in such Euro
Currency Equivalents). Unless sooner paid in full, the outstanding principal balance of the Term
Loans shall be paid in full on the Term Loan Maturity Date.

     6.4.3 Bridge Loan. The Bridge Loan (both principal and all accrued interest thereon)
shall be paid in full on or prior to December 29, 2006.

     SECTION 7 MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.

     7.1 Making of Payments. All payments of principal or interest on the Loans and Notes, and
of all fees, shall be made by the applicable Borrower to the Administrative Agent in immediately
available funds (in Dollars except that Loans and reimbursement obligations (subject to the
provisions of Section 2.3.3 requiring reimbursement in Dollars) in Euros shall be paid in
Euros) at the office specified by the Administrative Agent not later than noon, Chicago time, on
the date due; and funds received after that hour shall be deemed to have been received by the
Administrative Agent on the following Business Day. The Administrative Agent shall promptly remit
to each Lender its share of all such payments received in collected funds by the Administrative
Agent for the account of such Lender. All payments under Section 8.1 shall be made by the
applicable Borrower directly to the Lender entitled thereto without setoff, counterclaim or other
defense.

     7.2 Application of Certain Payments. So long as the provisions of the immediately
following sentence shall not apply, (a) payments matching specific scheduled payments then due
shall be applied to those scheduled payments and (b) voluntary and mandatory prepayments shall be
applied as set forth in Sections 6.2 and 6.3. Notwithstanding the provisions of
the immediately preceding sentence, (i) the provisions of Section 6.6 of the Guaranty and
Collateral Agreement (and applicable provisions of the Foreign Pledge Agreements) shall apply with

43

 

respect to the application of payments from the proceeds resulting from the realization by the
Administrative Agent on any Collateral and (ii) if an Event of Default exists and if requested by
the Required Lenders or if an acceleration of the Obligations occurs pursuant to Section
13.2, then payments by or with respect to any Borrower not covered by clause (i) of this
sentence shall be applied in the following order:

     First, to the payment of all fees, costs, expenses and indemnities of the
Administrative Agent (in its capacity as such) owed by such Borrower, including Attorney
Costs, and any other Obligations of such Borrower owing to the Administrative Agent in
respect of sums advanced by the Administrative Agent;

     Second, to all Obligations of such Borrower consisting of or relating to the payment of
all fees, costs, expenses and indemnities of the Lenders, pro-rata, until paid in full;

     Third, to the payment of all of the Obligations (other than Bank Product Obligations
and Hedging Obligations) of such Borrower consisting of or relating to accrued and unpaid
interest owing to any Lender, pro-rata, until paid in full;

     Fourth, to the payment of all Obligations (other than Bank Product Obligations and
Hedging Obligations) of such Borrower consisting of or relating to principal (including with
respect to Loans and reimbursement obligations relating to drawings
under Letters of Credit) owing to any Lender, pro-rata (i.e., in accordance with the
then unpaid principal amount held by each Lender), until paid in full;

     Fifth, to the payment of an amount equal to all Obligations of such Borrower in respect
of outstanding Letters of Credit to be held as cash collateral in respect of such
obligations;

     Sixth, to the payment of all Obligations of such Borrower consisting of or relating to
Bank Products Obligations and Hedging Obligations owing to any Lender or its Affiliates,
pro-rata, until paid in full;

     Seventh, to the payment of all other Obligations of such Borrower owing to each Lender,
pro-rata, until paid in full.

     Concurrently with each remittance to any Lender of its share of any such payment, the
Administrative Agent shall advise such Lender as to the application of such payment.

     7.3 Due Date Extension. If any payment of principal or interest with respect to any of the
Loans, or of any fees, falls due on a day which is not a Business Day, then such due date shall be
extended to the immediately following Business Day (unless, in the case of a LIBOR Loan, such
immediately following Business Day is the first Business Day of a calendar month, in which case
such due date shall be the immediately preceding Business Day) and, in the case of principal,
additional interest shall accrue and be payable for the period of any such extension.

44

 

     7.4 Setoff. Each Borrower, for itself, agrees that the Administrative Agent and each
Lender and each Lender Affiliate have all rights of set-off and bankers’ lien provided by
applicable law, and in addition thereto, each Borrower agrees that at any time any Event of Default
exists, the Administrative Agent and each Lender and Lender Affiliate shall have the right to
set-off against, and may (without having to give notice) apply to the payment of, any Obligations
of such Borrower, whether or not then due, any and all balances, credits, deposits, accounts or
moneys of such Borrower (or any other amounts due to such Borrower from the Administrative Agent,
such Lender or such Lender Affiliate) then or thereafter with (or owed by) the Administrative Agent
or such Lender of such Lender Affiliate.

     7.5 Proration of Payments. If any Lender shall obtain any payment or other recovery
(whether voluntary, involuntary, by application of offset or otherwise, on account of (a) principal
of or interest on any Loan, but excluding (i) any payment pursuant to Section 8.7 or
15.6 and (ii) payments of interest on any Affected Loan) or (b) its participation in any
Letter of Credit) in excess of its applicable Pro Rata Share of payments and other recoveries
obtained by all Lenders on account of principal of and interest on the Loans (or such
participation) then held by them, then such Lender shall purchase from the other Lenders such
participations in the Loans (or sub-participations in Letters of
Credit) held by them as shall be necessary to cause such purchasing Lender to share the excess
payment or other recovery ratably with each of them; provided that if all or any portion of
the excess payment or other recovery is thereafter recovered from such purchasing Lender, the
purchase shall be rescinded and the purchase price restored to the extent of such recovery.

     7.6 Taxes.

     (a) All payments made by any Borrower hereunder or under any Loan Documents shall be made
without setoff, counterclaim, or other defense. Subject to Section 7.6(d)(iii), all
payments hereunder or under the Loan Documents (including any payment of principal, interest, or
fees) to, or for the benefit, of any person shall be made by the applicable Borrower free and clear
of and without deduction or withholding for, or account of, any Taxes now or hereinafter imposed by
any taxing authority.

     (b) If any Borrower makes any payment hereunder or under any Loan Document in respect of which
it is required by applicable law to deduct or withhold any Taxes, such Borrower shall increase the
payment hereunder or under any such Loan Document such that after the reduction for the amount of
Taxes withheld (and any taxes withheld or imposed with respect to the additional payments required
under this Section 7.6(b), including, but not limited to, any Excluded Taxes), the amount
paid to the Lenders or the Administrative Agent equals the amount that was payable hereunder or
under any such Loan Document without regard to this Section 7.6(b). To the extent any
Borrower withholds any Taxes on payments hereunder or under any Loan Document, such Borrower shall
pay the full amount deducted to the relevant taxing authority within the time allowed for payment
under applicable law and shall deliver to the Administrative Agent within 30 days after it has made
payment to such authority a receipt issued by such authority (or other evidence satisfactory to the
Administrative Agent) evidencing the payment of all amounts so required to be deducted or withheld
from such payment.

45

 

     (c) If (x) any Lender or the Administrative Agent is required by law to make any payments of
any Taxes on or in relation to any amounts received or receivable hereunder or under any other Loan
Document, (y) any Tax is assessed against or imposed on a Lender or the Administrative Agent with
respect to amounts received or receivable hereunder or under any other Loan Document, or (z) any
tax (including, but not limited to, any Excluded Tax) is assessed against or imposed on a Lender in
respect of any additional amounts received pursuant to Section 7.6(b), the applicable
Borrower will indemnify (and hold harmless) such person from and against (i) such Tax (and any
reasonable counsel fees and expenses associated with such Tax), (ii) any taxes (including, but not
limited to, any Excluded Taxes) described in clause (z) above, and (iii) any taxes (including, but
not limited to, any Excluded Taxes) imposed as a result of the receipt of the payment under this
Section 7.6(c). A certificate prepared in good faith as to the amount of such payment by
such Lender or the Administrative Agent shall, absent manifest error, be final, conclusive, and
binding on all parties.

     (d) (i) To the extent permitted by applicable law, each Lender that is not a United States
person within the meaning of Code Section 7701(a)(30) (a “Non-U.S. Participant”) shall
deliver to the Parent (as representative of all applicable Borrowers) and the Administrative Agent
on or prior to the Closing Date (or in the case of a Lender that is an Assignee, on the date of
such
assignment to such Lender) two accurate and complete original signed copies of IRS Form
W-8BEN, W-8ECI, or W-8IMY (or any successor or other applicable form prescribed by the IRS)
certifying to such Lender’s entitlement to a complete exemption from, or a reduced rate in, United
States withholding tax on interest payments to be made hereunder or any Loan. If a Lender that is
a Non-U.S. Participant is claiming a complete exemption from withholding on interest pursuant to
Code Sections 871(h) or 881(c), the Lender shall deliver (along with two accurate and complete
original signed copies of IRS Form W-8BEN) a certificate to Administrative Agent certifying that
such Lender is not a “bank” as such term is used in Code Section 881(c)(3)(A) (any such
certificate, a “Withholding Certificate”). In addition, each Lender that is a Non-U.S.
Participant agrees that from time to time after the Closing Date, (or in the case of a Lender that
is an Assignee, after the date of the assignment to such Lender), when a lapse in time (or change
in circumstances occurs) renders the prior certificates hereunder obsolete or inaccurate in any
material respect, such Lender shall, to the extent permitted under applicable law, deliver to the
Parent (as representative of the applicable Borrowers) and the Administrative Agent two new and
accurate and complete original signed copies of an IRS Form W-8BEN, W-8ECI, or W-8IMY (or any
successor or other applicable forms prescribed by the IRS), and if applicable, a new Withholding
Certificate, to confirm or establish the entitlement of such Lender or the Administrative Agent to
an exemption from, or reduction in (to the extent applicable), United States withholding tax on
interest payments to be made hereunder or any Loan or it shall immediately notify the Parent and
the Administrative Agent of its inability under applicable law to deliver any such form or
Withholding Certificate, in which case such Lender shall not be required to deliver any such form
or Withholding Certificate pursuant to this Section 7.6(d).

     (ii) Each Lender that is not a Non-U.S. Participant (other than any such Lender which is taxed
as a corporation for U.S. federal income tax purposes) shall provide two properly completed and
duly executed copies of IRS Form W-9 (or any successor or other applicable form) to the Parent (as
representative of the Borrowers) and the Administrative Agent on or prior

46

 

to the Closing Date
certifying, to the extent permitted by applicable law, that such Lender is exempt from United
States backup withholding tax. To the extent that a form provided pursuant to this Section
7.6(d)(ii) is rendered obsolete or inaccurate in any material respects as result of change in
circumstances with respect to the status of a Lender, such Lender shall, to the extent permitted by
applicable law, deliver to the Parent and the Administrative Agent revised forms necessary to
confirm or establish the entitlement to such Lender’s or Agent’s exemption from United States
backup withholding tax or it shall immediately notify the Parent and the Administrative Agent of
its inability under applicable law to deliver any such form, in which case such Lender shall not be
required to deliver any such form pursuant to this Section 7.6(d).

     (iii) Subject to the immediately succeeding sentence, the applicable Borrower shall (x) to the
extent it is required to do so by law, be entitled to deduct or withhold income or similar taxes
imposed by the United States (or any political subdivision or taxing authority thereof or therein)
from interest, fees or other amounts payable hereunder or under any Loan Document for the account
of any Lender that is a Non-U.S. Participant and (y) not be required to pay additional amounts to a
Lender, or indemnify any Lender, under this Section 7.6 to the extent that such obligations
would not have arisen but for the failure of such Lender to comply with Section 7.6(d).
Notwithstanding anything to the contrary contained in this Section 7.6, the applicable
Borrower agrees to pay additional amounts and to indemnify each Lender in the manner set forth
in Section 7.6(a), (b) and (c) (without regard to the identity of the
jurisdiction requiring the deduction or withholding) as a result of any changes after the Closing
Date in any applicable law, treaty, governmental rule, regulation, guideline or order, or in the
interpretation thereof, relating to the deducting or withholding of income or similar taxes.

     (iv) Each Lender agrees to indemnify the Administrative Agent and hold the Administrative
Agent harmless for the full amount of any and all present or future Taxes and related liabilities
(including penalties, interest, additions to tax and expenses, and any Taxes imposed by any
jurisdiction on amounts payable to the Administrative Agent under this Section 7.6) which
are imposed on or with respect to principal, interest or fees payable to such Lender hereunder and
which are not paid by a Borrower pursuant to this Section 7.6, whether or not such Taxes or
related liabilities were correctly or legally asserted. This indemnification shall be made within
30 days from the date the Administrative Agent makes written demand therefor.

     SECTION 8 INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.

     8.1 Increased Costs.

     (a) If, after the date hereof, the adoption of, or any change in, any applicable law, rule or
regulation, or any change in the interpretation or administration of any applicable law, rule or
regulation by any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by any Lender with any request or directive
(whether or not having the force of law) of any such authority, central bank or comparable agency:
(i) shall impose, modify or deem applicable any reserve (including any reserve imposed by the FRB,
but excluding any reserve included in the determination of the LIBOR Rate pursuant to Section
4), special deposit or similar requirement against assets of, deposits with or for the account
of, or credit extended by any Lender; or (ii) shall impose on any

47

 

Lender any other condition
affecting its LIBOR Loans, its Notes or its obligation to make LIBOR Loans (other than in respect
of Excluded Taxes); and the result of anything described in clauses (i) and (ii) above is to
increase the cost to (or to impose a cost on) such Lender (or any LIBOR Office of such Lender) of
making or maintaining any LIBOR Loan, or to reduce the amount of any sum received or receivable by
such Lender (or its LIBOR Office) under this Agreement or under its Notes with respect thereto,
then upon demand by such Lender (which demand shall be accompanied by a statement setting forth the
basis for such demand and a calculation of the amount thereof in reasonable detail, a copy of which
shall be furnished to the Administrative Agent), the applicable Borrower(s) in each such case shall
pay directly to such Lender such additional amount as will compensate such Lender for such
increased cost or such reduction, so long as such amounts have accrued on or after the day which is
180 days prior to the date on which such Lender first made demand therefor (to the extent it is
then customary for such Lender to charge its customers for such amounts).

     (b) If any Lender shall reasonably determine that any change in, or the adoption or phase-in
of, any applicable law, rule or regulation regarding capital adequacy, or any change in the
interpretation or administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or the compliance
by any Lender or any Person controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) of any such authority, central bank or
comparable agency, has or would have the effect of reducing the rate of return on such Lender’s or
such controlling Person’s capital as a consequence of such Lender’s obligations hereunder or under
any Letter of Credit to a level below that which such Lender or such controlling Person could have
achieved but for such change, adoption, phase-in or compliance (taking into consideration such
Lender’s or such controlling Person’s policies with respect to capital adequacy) by an amount
deemed by such Lender or such controlling Person to be material, then from time to time, upon
demand by such Lender (which demand shall be accompanied by a statement setting forth the basis for
such demand and a calculation of the amount thereof in reasonable detail, a copy of which shall be
furnished to the Administrative Agent), the applicable Borrower(s) in each such case shall pay to
such Lender such additional amount as will compensate such Lender or such controlling Person for
such reduction so long as such amounts have accrued on or after the day which is 180 days prior to
the date on which such Lender first made demand therefor (to the extent it is then customary for
such Lender to charge its customers for such amounts).

     8.2 Basis for Determining Interest Rate Inadequate or Unfair. If:

     (a) the Administrative Agent reasonably determines (which determination shall be binding and
conclusive on the Borrowers) that by reason of circumstances affecting the interbank LIBOR market
adequate and reasonable means do not exist for ascertaining the applicable LIBOR Rate (whether in
Dollars or Euros); or

     (b) the Required Lenders advise the Administrative Agent that the LIBOR Rate as determined by
the Administrative Agent will not adequately and fairly reflect the cost to such Lenders of
maintaining or funding the applicable LIBOR Loans for such Interest Period (taking into account any
amount to which such Lenders may be entitled under Section 8.1) or that the

48

 

making or
funding of the applicable LIBOR Loans has become impracticable as a result of an event occurring
after the date of this Agreement which in the opinion of such Lenders materially affects such
Loans;

then the Administrative Agent shall promptly notify the other parties thereof and, so long
as such circumstances shall continue, (i) no Lender shall be under any obligation to make or
convert any Base Rate Loans into LIBOR Loans and (ii) subject to prior written notice having been
provided by the Administrative Agent to the affected Borrower, on the last day of the current
Interest Period for each LIBOR Loan (of such earlier date as may be required by applicable law,
regulation or interpretation), such Loan shall, unless then repaid in full, automatically convert
to a Base Rate Loan (and if the applicable LIBOR Loan is in Euros, such Base Rate Loan shall be
converted (in the Dollar Equivalent thereof) to Dollars and the applicable Borrower shall indemnify
(and hold harmless) the applicable Lenders for (and from) any loss as a result of such conversion).

     8.3
Changes in Law Rendering LIBOR Loans Unlawful. If any change in, or the adoption of any new, law or regulation, or any change in the
interpretation of any applicable law or regulation by any governmental or other regulatory body
charged with the administration thereof, should make it (or in the good faith judgment of any
Lender cause a substantial question as to whether it is) unlawful for any Lender to make, maintain
or fund LIBOR Loans (whether in Dollars or Euros), then such Lender shall promptly notify each of
the other parties hereto and, so long as such circumstances shall continue, (a) such Lender shall
have no obligation to make any LIBOR Loan or convert any Base Rate Loan into a LIBOR Loan (but
shall make Base Rate Loans concurrently with the making of LIBOR Loans or the conversion of Base
Rate Loans into LIBOR Loans by the Lenders which are not so affected, in each case in an amount
equal to the amount of LIBOR Loans which would be made or converted into by such Lender at such
time in the absence of such circumstances) and (b) subject to prior written notice having been
provided by the Administrative Agent to the affected Borrower, on the last day of the current
Interest Period for each LIBOR Loan of such Lender (or, in any event, on such earlier date as may
be required by the relevant law, regulation or interpretation), such LIBOR Loan shall, unless then
repaid in full, automatically convert to a Base Rate Loan (and if the applicable LIBOR Loan is in
Euros, such Base Rate Loan shall be converted (in the Dollar Equivalent thereof) to Dollars and the
applicable Borrower shall indemnify (and hold harmless) the applicable Lenders for (and from) any
loss as a result of such conversion). Each Base Rate Loan made by a Lender which, but for the
circumstances described in the foregoing sentence, would be a LIBOR Loan (an “Affected
Loan”) shall remain outstanding for the period corresponding to the Group of LIBOR Loans of
which such Affected Loan would be a part absent such circumstances.

     8.4 Funding Losses. The Parent in each case, and Newco in the case of amounts (under this
Section 8.4) arising from the Term Loans and the Initial German Revolving Loan, and the
German Opcos in the case of amounts arising (under this Section 8.4) from the German
Revolving Loans other than the Initial German Revolving Loan, hereby agrees that upon demand by any
Lender (which demand shall be accompanied by a statement setting forth the basis for the amount
being claimed, a copy of which shall be furnished to the Administrative Agent) it will indemnify
such Lender against any net loss or expense (excluding the loss of Applicable Margin) which such
Lender may sustain or incur (including any net loss or expense incurred by reason of

49

 

the
liquidation or reemployment of deposits or other funds acquired by such Lender to fund or maintain
any LIBOR Loan and also including, in the case of any Loan in (or in the case of clause (b) below
proposed to be in) Euros any related loss suffered as a result of any breakage costs relating to
any foreign exchange contracts relating to such Loans), as reasonably determined by such Lender, as
a result of (a) any payment, prepayment or conversion of any LIBOR Loan of such Lender on a date
other than the last day of an Interest Period for such Loan (including any conversion pursuant to
Section 8.3) or (b) any failure of any Borrower to borrow, convert or continue any Loan on
a date specified therefor in a notice of borrowing, conversion or continuation pursuant to this
Agreement. For this purpose, all notices to the Administrative Agent pursuant to this Agreement
shall be deemed to be irrevocable.

     8.5
Right of Lenders to Fund through Other Offices. Each Lender may, if it so elects, fulfill its commitment as to any LIBOR Loan (and/or any Loan
to be made in Euros) by causing a foreign branch or Affiliate of such Lender to make such Loan;
provided that in such event for the purposes of this Agreement such Loan shall be deemed to
have been made by such Lender and the obligation of the applicable Borrower to repay such Loan
shall nevertheless be to such Lender and shall be deemed held by it, to the extent of such Loan,
for the account of such branch or Affiliate.

     8.6 Discretion of Lenders as to Manner of Funding. Notwithstanding any provision of this
Agreement to the contrary, each Lender shall be entitled to fund and maintain its funding of all or
any part of its Loans in any manner it sees fit, it being understood, however, that for the
purposes of this Agreement all determinations hereunder shall be made as if such Lender had
actually funded and maintained each LIBOR Loan during each Interest Period for such Loan through
the purchase of deposits having a maturity corresponding to such Interest Period and bearing an
interest rate equal to the LIBOR Rate for such Interest Period.

     8.7 Mitigation of Circumstances; Replacement of Lenders.

     (a) Each Lender shall promptly notify the applicable Borrower(s) and the Administrative Agent
of any event of which it has actual knowledge which will result in, and will use reasonable
commercial efforts available to it (and not, in such Lender’s sole good faith judgment, otherwise
disadvantageous to such Lender) to mitigate or avoid, (i) any obligation by an applicable Borrower
to pay any amount pursuant to Sections 7.6 or 8.1 or (ii) the occurrence of any
circumstances described in Sections 8.2 or 8.3 (and, if any Lender has given notice
of any such event described in clause (i) or (ii) above and thereafter such event ceases to exist,
such Lender shall promptly so notify the applicable Borrower(s) and the Administrative Agent).
Without limiting the foregoing, each Lender will designate a different funding office if such
designation will avoid (or reduce the cost to the applicable Borrower of) any event described in
clause (i) or (ii) above and such designation will not, in such Lender’s sole good faith judgment,
be otherwise disadvantageous to such Lender.

     (b) If an applicable Borrower becomes obligated to pay additional amounts to any Lender
pursuant to Sections 7.6 or 8.1, or any Lender gives notice of the occurrence of
any circumstances described in Sections 8.2 or 8.3, the applicable Borrower(s) may
designate another bank which is acceptable to the Administrative Agent and the Issuing Lender in
their reasonable

50

 

discretion (such other bank being called a “Replacement Lender”) to
purchase the Loans of such Lender and such Lender’s rights hereunder, without recourse to or
warranty by, or expense to, such Lender, for a purchase price equal to the outstanding principal
amount of the Loans payable to such Lender plus any accrued but unpaid interest on such Loans and
all accrued but unpaid fees owed to such Lender and any other amounts payable to such Lender under
this Agreement, and to assume all the obligations of such Lender hereunder, and, upon such purchase
and assumption (pursuant to an Assignment Agreement), such Lender shall no longer be a party hereto
or have any rights hereunder (other than rights with respect to indemnities and similar rights
applicable to such Lender prior to the date of such purchase and assumption) and shall be
relieved from all obligations to the Borrowers hereunder, and the Replacement Lender shall
succeed to the rights and obligations of such Lender hereunder.

     8.8 Conclusiveness of Statements; Survival of Provisions. Determinations and statements of
any Lender pursuant to Sections 8.1, 8.2, 8.3 or 8.4 shall be set
forth in a certificate executed by the applicable Lender(s) and delivered to the applicable
Borrower(s) conclusive absent demonstrable error. Lenders may use reasonable averaging and
attribution methods in determining compensation under Sections 8.1 and 8.4, and the
provisions of such Sections shall survive repayment of the Obligations, cancellation of any Notes,
expiration or termination of the Letters of Credit and termination of this Agreement.

     SECTION 9 REPRESENTATIONS AND WARRANTIES.

     To induce the Administrative Agent and the Lenders to enter into this Agreement and to induce
the Lenders to make Loans and issue and participate in Letters of Credit hereunder, each Borrower
represents and warrants (provided, that, each Borrower other than the Parent shall only be deemed
to have represented and warranted as to matters relating to itself and its Material Subsidiaries)
to the Administrative Agent and the Lenders that, both before and after giving effect to the
Related Transactions:

     9.1
Organization. The Parent and each of its Material Subsidiaries is validly existing and
in good standing (provided that this representation and warranty as to good standing shall only
apply to Baldwin U.K. Holding Limited and Acrotec UK Ltd. from and after the date which is 120 days
after the Closing Date) under the laws of its jurisdiction of organization and has the power and
authority to own all of its material assets and properties and to engage in all material business
in which it is engaged and presently proposes to engage; and Parent and each of its Material
Subsidiaries is duly qualified to do business in each jurisdiction where, because of the nature of
its activities or properties, such qualification is required, except for such jurisdictions where
the failure to so qualify would not have a Material Adverse Effect.

     9.2 Authorization; No Conflict. Each of the Parent, each Borrower and each other
Subsidiary of the Parent which is party to any of the Loan Documents (for purposes of this
Section 9.2, the Parent, each Borrower and each such Subsidiary is referred to as a
“Loan Document Party”) has the power and authority to, and is duly authorized to, execute
and deliver each Loan Document to which it is a party, each Borrower is duly authorized to borrow
monies hereunder and each Loan Document Party is duly authorized to perform its Obligations under
each Loan Document to which it is a party. The execution, delivery and performance by each

51

 

Loan
Document Party of each Loan Document to which it is a party, and the borrowings by the Borrowers
hereunder, do not and will not (a) require any consent or approval of any governmental agency or
authority (other than any consent or approval which has been obtained and is in full force and
effect), (b) conflict with or violate (i) any provision of law, rule or regulation (domestic or
foreign), (ii) the charter, by-laws or other
organizational documents of the Parent or any of its Subsidiaries or (iii) any agreement,
indenture, instrument or other document, or any judgment, order or decree, which is binding upon
the Parent or any of its Subsidiaries or any of their respective properties except, in the case of
this clause (iii), where such conflict or violation could not reasonably be expected to have a
Material Adverse Effect or (c) require, or result in, the creation or imposition of any Lien on any
asset of the Parent or any of its Subsidiaries (other than Liens in favor of the Administrative
Agent created pursuant to the Collateral Documents).

     9.3 Validity and Binding Nature. Each of this Agreement and each other Loan Document to
which any Loan Party is a party is the legal, valid and binding obligation of such Person,
enforceable against such Person in accordance with its terms, subject to bankruptcy, insolvency and
similar laws affecting the enforceability of creditors’ rights generally and to general principles
of equity.

     9.4 Financial Condition. The audited consolidated financial statements of the Parent and
its Subsidiaries as at (and for the fiscal years ended) June 30, 2006, June 30, 2005 and June 30,
2004, and the unaudited consolidated financial statements of the Parent and its Subsidiaries as at
(and for the three months ended) September 30, 2006, copies of each of which have been delivered to
the Administrative Agent, the Bridge Lender and each initial Permanent Lender, were prepared in
accordance with GAAP (subject, in the case of such unaudited statements, to the absence of
footnotes and to normal year-end adjustments) and present fairly, in all material respects, the
consolidated financial condition of the Parent and its Subsidiaries as at such dates and the
results of their operations for the periods then ended. The audited consolidated financial
statements of MTC and its Subsidiaries as at (and for the fiscal years ended) December 31, 2004 and
December 31, 2005, copies of each of which have been delivered to the Administrative Agent, the
Bridge Lender and each initial Permanent Lender, were prepared in accordance with GAAP and present
fairly, in all material respects, the consolidated financial condition of MTC and its Subsidiaries
as at such dates and the results of their operations for the periods then ended. The (x) audited
consolidated financial statements of Oxy-Dry Corporation and its Subsidiaries as at (and for the
fiscal years ended) December 31, 2004 and December 31, 2005, and (y) unaudited consolidated
financial statements of Oxy-Dry and its Subsidiaries as at (and for the nine months ended)
September 30, 2006, copies of each of which have been delivered to the Administrative Agent, the
Bridge Lender and each initial Permanent Lender, were (i) in the case of clause (x), prepared in
accordance with GAAP and (ii) in the case of clauses (x) and (y), present fairly, in all material
respects, the consolidated financial condition of Oxy-Dry Corporation and its Subsidiaries as at
such dates and the results of their operations for the periods then ended.

     9.5 No Material Adverse Change. Since September 30, 2006, there has been no material
adverse change in the financial condition, operations, assets, business, properties or prospects of
the Parent and its Subsidiaries taken as a whole.

52

 

     9.6 Litigation and Contingent Liabilities. No litigation (including derivative actions),
arbitration proceeding or governmental investigation or proceeding is pending or, to the Borrowers’
knowledge, threatened against the Parent or any of its Subsidiaries which could reasonably be
expected to have a Material Adverse Effect, except as disclosed in Schedule 9.6. Other
than any liability incident to such litigation or proceedings so disclosed, neither the Parent nor
any of its Subsidiaries has any material contingent liabilities not listed on Schedule 9.6
or permitted by Section 11.1. Additionally, there is no judgment, order or injunction
prohibiting or imposing material adverse conditions on any borrowing or other extension of credit
contemplated hereby.

     9.7 Ownership of Properties; Liens. Each of the Parent and its Subsidiaries owns good and,
in the case of real property, marketable title to all of its material properties and assets, real
and personal, tangible and intangible, of any nature whatsoever (including patents, trademarks,
trade names, service marks and copyrights), free and clear of all Liens, charges and claims
(including infringement claims with respect to patents, trademarks, service marks, copyrights and
the like) except as permitted by Section 11.2.

     9.8 Equity Ownership; Subsidiaries. All issued and outstanding Capital Securities of each
of the Parent and its Subsidiaries are duly authorized and validly issued, fully paid,
non-assessable, and free and clear of all Liens other than those in favor of the Administrative
Agent, and such securities were issued in compliance with all applicable state, federal and foreign
laws, rules and regulations concerning the issuance of securities. Schedule 9.8 sets forth
the authorized Capital Securities of the Parent and (i) each of the Domestic Subsidiaries, (ii) BEC
BV, (iii) Newco, (iv) each German Opco, and (v) any Material Subsidiary whose stock is pledged
pursuant to the Guaranty and Collateral Agreement, in each case as of the Closing Date. All of the
issued and outstanding Capital Securities of each Subsidiary (direct or indirect) of the Parent are
owned as set forth on Schedule 9.8 as of the Closing Date. All of the issued and
outstanding Capital Securities of each Wholly-Owned Subsidiary is, directly or indirectly, owned by
the Parent. As of the Closing Date, except as set forth on Schedule 9.8, there are no
pre-emptive or other outstanding rights, options, warrants, conversion rights or other similar
agreements or understandings for the purchase or acquisition of any Capital Securities of the
Parent or any of its Subsidiaries.

     9.9 Pension Plans.

     (a) The Unfunded Liability of all Pension Plans subject to Title IV of ERISA does not in the
aggregate exceed twenty percent of the Total Plan Liability for all such Pension Plans. Each
Pension Plan complies in all material respects with ERISA and the Code. No contribution failure
under Section 412 of the Code, Section 302 of ERISA or the terms of any Pension Plan has occurred
with respect to any Pension Plan, sufficient to give rise to a Lien under Section 302(f) of ERISA,
or otherwise to have a Material Adverse Effect. There are no pending or, to the knowledge of the
Borrowers, threatened, claims, actions, investigations or lawsuits against any Pension Plan, any
fiduciary of any Pension Plan, or Parent or other any member of the
Controlled Group with respect to a Pension Plan which could reasonably be expected to have a
Material Adverse Effect. There are no pending or, to the knowledge of any Borrower, threatened,
claims, actions, investigations or lawsuits against Parent or any other member of the

53

 

Controlled
Group with respect to a Multiemployer Pension Plan which could reasonably be expected to have a
Material Adverse Effect. Neither the Parent nor any other member of the Controlled Group has
engaged in any non-exempt prohibited transaction (as defined in Section 4975 of the Code or Section
406 of ERISA) in connection with any Pension Plan which could reasonably be expected to have a
Material Adverse Effect. Within the past five years, neither the Parent nor any other member of
the Controlled Group has engaged in a transaction which resulted in a Pension Plan subject to Title
IV of ERISA with an Unfunded Liability being transferred out of the Controlled Group, which could
reasonably be expected to have a Material Adverse Effect. No Termination Event has occurred or is
reasonably expected to occur with respect to any Pension Plan subject to Title IV of ERISA, which
could reasonably be expected to have a Material Adverse Effect.

     (b) (i) All contributions (if any) have been made to any Multiemployer Pension Plan that are
required to be made by the Parent or any other member of the Controlled Group under the terms of
the plan or of any collective bargaining agreement or by applicable law; (ii) neither the Parent
nor any other member of the Controlled Group has withdrawn or partially withdrawn from any
Multiemployer Pension Plan, incurred any withdrawal liability with respect to any such plan or
received notice of any claim or demand for withdrawal liability or partial withdrawal liability
from any such plan, and, to the knowledge of the Borrowers, no condition has occurred which, if
continued, could result in a withdrawal or partial withdrawal from any such plan; and (iii) neither
the Parent nor any other member of the Controlled Group has received any notice that any
Multiemployer Pension Plan is in reorganization, that increased contributions may be required to
avoid a reduction in plan benefits or the imposition of any excise tax, that any such plan is or
has been funded at a rate less than that required under Section 412 of the Code, that any such plan
is or may be terminated, or that any such plan is or may become insolvent, (iv) no event or
condition has occurred or exists with respect to a Foreign Benefit Plan with respect to which
Parent or any member of the Controlled Group has incurred or could reasonably be expected to incur
any liability; and (v) each Foreign Benefit Plan complies in all respects with applicable foreign
law; except to the extent that the foregoing in clauses (i), (ii), (iii), (iv) or (v) individually
or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.

     (c) Except to the extent it and its impact is disclosed to the Administrative Agent and/or the
Lenders prior to the date of this Agreement in any pension or other report, no member German Opco
(and Newco to the extent applicable) has any material liability in respect of any pension scheme
and there are no circumstances which would give rise to such liability where such liability would
reasonably be expected to have a Material Adverse Effect.

     (d) Each German Opco (and Newco to the extent applicable) is in compliance in all material
respects with all applicable material laws and material contracts relating to and the governing
provisions of the pension schemes maintained by or for the benefit of any German Opco (and Newco to
the extent applicable) and/or any of its employees where failure to comply would reasonably be
expected to have a Material Adverse Effect.

54

 

     9.10 Investment Company Act. None of the Parent or its Subsidiaries is an “investment
company” or a company “controlled” by an “investment company” or a “subsidiary” of an “investment
company,” within the meaning of the Investment Company Act of 1940.

     9.11 [Reserved]

     9.12 Regulation U. Neither the Parent nor any of its Subsidiaries is engaged principally,
or as one of its important activities, in the business of extending credit for the purpose of
purchasing or carrying Margin Stock.

     9.13 Taxes. Each of the Parent and its Subsidiaries has timely and properly filed all
federal tax returns and reports and all other material tax returns and reports required by law to
have been filed by it and each such tax return or report is true, complete and correct in all
material respects. Each of Parent and its Material Subsidiaries has paid all taxes and
governmental charges due and payable by it (and each Subsidiary that is not a Material Subsidiary
has paid all material taxes and governmental charges due and payable by it), except any such taxes
or charges which are being diligently contested in good faith by appropriate proceedings and for
which adequate reserves in accordance with GAAP shall have been set aside on its books. Each of
the Parent and its Subsidiaries have made adequate reserves on their books and records in
accordance with GAAP for all federal (or its equivalent in a country other than the United States)
and all other material taxes that have accrued but which are not yet due and payable. There is no
proposed tax assessment, audit, action, suit, proceeding or investigation against the Parent or any
of its Subsidiaries which could reasonably be expected to have a Material Adverse Effect. Neither
the Parent nor any of its Subsidiaries has entered into an agreement or waiver extending any
statute of limitation relating to the payment or collection of taxes of Parent or any of its
Subsidiaries, or is aware of any circumstances that would cause the taxable years or other taxable
periods of the Parent or any of its Subsidiaries not to be subject to the normally applicable
statute of limitations. None of the Parent or its Subsidiaries has participated in any transaction
that relates to a year of the taxpayer (which is still open under the applicable statute of
limitations) which is a “reportable transaction” within the meaning of Treasury Regulation Section
1.6011-4(b)(2) (irrespective of the date when the transaction was entered into).

     9.14 Solvency, etc. With respect to each of the Parent and each of its Material
Subsidiaries (except Baldwin Graphic Equipment BV as to which no representation or warranty is
being given under this Section 9.14 on an individual basis) individually as of the Closing
Date and as of the date the Loans contemplated by Section 12.3 are made (and with respect
to each Borrower, BEC BV, the Japanese Subsidiaries and Baldwin IVT AB individually and the Parent
and its Subsidiaries taken as a whole as of any other date the representations and warranties under
this Agreement are
made or deemed to be made), (a) the fair value of its assets is greater than the amount of its
liabilities (including disputed, contingent and unliquidated liabilities) as such value is
established and liabilities evaluated in accordance with GAAP, (b) the present fair saleable value
of its assets is not less than the amount that will be required to pay the probable liability on
its debts as they become absolute and matured, (c) it is able to realize upon its assets and pay
its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as
they mature in the normal course of business, (d) it does not intend to, and does not believe

55

 

that
it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities mature
and (e) it is not engaged in business or a transaction, and is not about to engage in business or a
transaction, for which its property would constitute unreasonably small capital. No German Opco
has taken any corporate action nor have any legal proceedings or other procedure or step been
taken, started or threatened in relation to: (i) a petition for insolvency proceedings in respect
of its assets (Antrag auf Eröffnung eines Insolvenzverfahrens); or (ii) any other actions set out
in section 21 of the German Insolvency Code.

     9.15 Environmental Matters. Except as set forth in Schedule 9.15, the on-going
operations of each of the Parent and its Subsidiaries comply in all respects with all Environmental
Laws, except such non-compliance which would not (if enforced in accordance with applicable law)
reasonably be expected to result, either individually or in the aggregate, in a Material Adverse
Effect. Except as set forth in Schedule 9.15, each of the Parent and its Subsidiaries has
obtained, and maintains in good standing, all licenses, permits, authorizations, registrations and
other approvals required under any Environmental Law (collectively, “Environmental
Licenses”) and each of the Parent and its Subsidiaries is in compliance with all terms and
conditions thereof, except where the failure to do so could not reasonably be expected to result,
either individually or in the aggregate, in a Material Adverse Effect. Except as set forth in
Schedule 9.15, none of the Parent or its Subsidiaries or any of its properties or
operations is subject to, or reasonably anticipates the issuance of, any written order from or
agreement with any Federal, state or local governmental authority, nor subject to any judicial or
docketed administrative or other proceeding, respecting any Environmental Law, Environmental Claim
or Hazardous Substance that either individually or in the aggregate could reasonably be expected to
result in a Material Adverse Effect. Except as set forth in Schedule 9.15, there are no
Hazardous Substances or other conditions or circumstances existing with respect to any property, or
relating to any waste disposal or other operations, of the Parent or any of its Subsidiaries that
would reasonably be expected to result, either individually or in the aggregate, in a Material
Adverse Effect. None of the Parent or its Subsidiaries has any underground storage tanks that are
not properly registered or permitted under applicable Environmental Laws or that at any time have
released, leaked, disposed of or otherwise discharged Hazardous Substances except as could not,
either individually or in the aggregate, reasonably be expected to result in a Material Adverse
Effect.

     9.16 Insurance. Set forth on Schedule 9.16 is a complete and accurate summary of
the property and casualty insurance program of the Parent and its Subsidiaries as of the Closing
Date. Each of the Parent and its Subsidiaries and its material properties are insured with
financially sound and reputable
insurance companies which are not Affiliates of the Parent or its Subsidiaries, in such amounts,
with such deductibles and covering such risks as are customarily carried by companies engaged in
similar businesses and owning similar properties in localities where the Parent or its
Subsidiaries, as the case may be, operate.

     9.17 Real Property. Set forth on Schedule 9.17 is a complete and accurate list, as
of the Closing Date, of the address of all real property owned or leased by any Loan Party,
together with, in the case of leased property, the name and mailing address of the lessor of such
property.

56

 

     9.18 Information. All material information heretofore or contemporaneously herewith
furnished in writing by or on behalf of the Parent or any of its Subsidiaries to the Administrative
Agent or any Lender for purposes of or in connection with this Agreement and the transactions
contemplated hereby is (when taken as a whole), and all material written information hereafter
furnished by or on behalf of the Parent or any of its Subsidiaries to the Administrative Agent or
any Lender pursuant hereto or in connection herewith will be (when taken as a whole), true and
accurate in every material respect on the date as of which such information is dated or certified,
and none of such information is or will be incomplete by omitting to state any material fact
necessary to make such information not misleading in light of the circumstances under which made
(it being recognized by the Administrative Agent and the Lenders that any projections and forecasts
provided by the Parent are based on good faith estimates and assumptions believed by the Parent to
be reasonable as of the date of the applicable projections or assumptions and that actual results
during the period or periods covered by any such projections and forecasts may materially differ
from projected or forecasted results).

     9.19 Intellectual Property. Each of the Parent and its Material Subsidiaries owns and
possesses or has a license or other right to use all patents, patent rights, trademarks, trademark
rights, trade names, trade name rights, service marks, service mark rights and copyrights as are
necessary for the conduct of the businesses of the Loan Parties, without any infringement upon
rights of others, except where the failure to so own, possess, have a license or other right
(without infringement) could not reasonably be expected to have a Material Adverse Effect.

     9.20 Burdensome Obligations; No Default; Compliance with Laws. None of the Parent or any
of its Subsidiaries (i) is a party to any agreement or contract or subject to any restriction
contained in its organizational documents which could reasonably be expected to have a Material
Adverse Effect or (ii) is in default or in breach of any agreement or instrument where such default
or breach could reasonably be expected to have a Material Adverse Effect. The Parent does not know
of any dispute regarding any agreement or contract of the Parent or its Subsidiaries which could
reasonably be expected to have a Material Adverse Effect. Each of the Parent and its Subsidiaries
is in compliance with (i) all laws, rules and
regulations applicable to it or its properties or operations and (ii) any decree, order or
judgment of any governmental authority or arbitrator where such non-compliance could reasonably be
expected to result in a Material Adverse Effect. Each German Borrower represents that it acts for
its own account within the meaning of section 8 of the German Money Laundering Act (Gesetz über das
Aufspüren von Gewinnen aus schweren Straftaten (Geldwäschegesetz)) for each Loan made or to be made
available to a German Borrower hereunder.

     9.21 Labor Matters. Except as set forth on Schedule 9.21, no Loan Party is subject
to any labor or collective bargaining agreement as of the Closing Date. Except as set forth on
Schedule 9.21, there are no existing or threatened strikes, lockouts or other labor
disputes involving the Parent or any of its Subsidiaries that singly or in the aggregate could
reasonably be expected to have a Material Adverse Effect. Hours worked by and payment made to
employees of the Loan Parties are not in violation of the Fair Labor Standards Act or any other
applicable law, rule or regulation dealing with such matters.

57

 

     9.22 No Default. No Event of Default or Unmatured Event of Default exists or would result
from the incurrence by any Loan Party of any Debt hereunder or under any other Loan Document.

     9.23 Related Agreements; Post-Closing Structural Steps; etc.

The Parent has heretofore furnished the Administrative Agent true and correct copies of the Related
Agreements. As of the Closing Date, all applicable waiting periods, if any, with respect to the
Related Transactions will have expired without any action being taken by any competent governmental
authority which restrains, prevents or imposes material adverse conditions upon the consummation of
the Related Transactions. The purchase of the stock of MTC contemplated by the Related Agreements
and the other Related Transactions shall be consummated simultaneously with the making of the
Bridge Loan and such consummation shall be made in accordance with the terms and conditions of the
Related Agreements and shall be in compliance with all applicable laws and regulations. All
representations and warranties in the Related Agreements shall be true and correct in all material
respects as of the Closing Date.

     (a) The Post-Closing Structural Steps shall be consummated prior to the making of the Term
Loans, the initial Parent Revolving Loans and the Initial German Revolving Loan.

     (b) The Post-Closing Structural Steps will comply with all applicable legal and regulatory
requirements in all material respects. All necessary governmental, regulatory, creditor,
shareholder, partner and other material consents, approvals and exemptions required to be obtained
by the Parent and its Material Subsidiaries in connection with the Post-Closing Structural Steps
will be, prior to consummation of the Post-Closing Structural Steps, duly obtained and will be in
full force and effect. As of the date each Post-Closing Structural Step is taken, all applicable
waiting periods (if any) with respect thereto will have expired without any action being taken by
any competent governmental authority which restrains, prevents or
imposes material adverse conditions upon the consummation of the Post-Closing Structural
Steps.

     (c) The consummation of the Post-Closing Structural Steps, and the execution, delivery and
performance of any agreements or other contracts related thereto, will not violate any foreign or
domestic law or regulation or any order, judgment or decree of any court or governmental body
binding on the Parent or any of its Material Subsidiaries or result in a breach of, or constitute a
default under, any material agreement, indenture, instrument or other document to which the Parent
or any of its Subsidiaries is a party or by which is bound except where such breach or default
could not reasonably be expected to have a Material Adverse Effect.

     9.24 Broker’s Fees, etc. Except for the fee payable to Groton Partners LLC previously
disclosed in writing to the Administrative Agent prior to the date hereof, and except for fees owed
to the Lenders and the Administrative Agent, none of Parent or its Subsidiaries has any obligation
to any Person in respect of any finder’s, broker’s or investment banker’s fee or other similar fee
in connection with the transactions contemplated hereby or the Related Agreements,

58

 

including any
finder’s, broker’s or investment banker’s fee in connection with the purchase contemplated by the
Purchase Agreement and the transactions contemplated hereby and thereby.

     9.25 Foreign Asset Control Regulations, Etc. Neither the Parent nor any of their
Subsidiaries or other Affiliates (a) is or will become a “blocked person” as described in the
Executive Order 13224 of September 21, 2001 Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), the
Trading With the Enemy Act (50 U.S.C. § 1 et seq., as amended), or any of the foreign assets
control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as
amended) or (b) knowingly engages or will knowingly engage in any unlicensed dealings or
transactions, or be otherwise associated with, any such “blocked person”.

     9.26 Certain Rabbi Trust Payments. To the best knowledge of the Parent, (i) as of the
Closing Date, the “Funding Amount” (as defined in the Rabbi Trust Agreement), in respect of the
Insurance Policies (as defined in the Rabbi Trust Agreement) would not exceed (if calculated on the
Closing Date) $750,000 and (ii) as of the Closing Date, the amount of additional cash contributions
(i.e., the amount in addition to the Rabbi Trust Existing Contributions) necessary to fully fund
the projected liabilities under the Plans (as defined in the Rabbi Trust Agreement) would not
exceed $2,050,000.

     9.27 Distributions, etc. All distributions and other transfers contemplated by Section
10.6, and all other distributions and other transfers made by the Parent and its Subsidiaries,
shall be in compliance with all
corporate (and other) distribution laws, all capital maintenance laws, and other laws, rules and
regulations.

     SECTION 10 AFFIRMATIVE COVENANTS.

     Until the expiration or termination of the Commitments and thereafter until all Obligations
hereunder and under the other Loan Documents are paid in full and all Letters of Credit have been
terminated (or Cash Collateralized), the Parent (as to all matters), and each of the other
Borrowers as to matters relating to such other Borrower and its Subsidiaries, agree that, unless at
any time the Required Lenders shall otherwise expressly consent in writing, it will:

     10.1 Reports, Certificates and Other Information. Furnish to the Administrative Agent and
each Lender:

     10.1.1 Annual Report. Promptly when available and in any event within 90 days after
the last day of each Fiscal Year: (a) a copy of the annual audit report of the Parent and its
Subsidiaries for such Fiscal Year, including therein consolidated balance sheets and statements of
earnings and cash flows of the Parent and its consolidated Subsidiaries as at the end of such
Fiscal Year, certified without adverse reference to going concern value and without qualification
by independent auditors of recognized national standing selected by the Parent and reasonably
acceptable to the Administrative Agent, together with a comparison with the budget for such Fiscal
Year and a comparison with the previous Fiscal Year; and (b) a consolidating balance sheet of the
Parent and its Subsidiaries as of the end of such Fiscal Year and consolidating

59

 

statement of
earnings and cash flows for the Parent and its Subsidiaries for such Fiscal Year, certified by a
Senior Officer of the Parent.

     10.1.2 Interim Reports. Promptly when available and in any event within 45 days after
the end of each Fiscal Quarter, consolidated and consolidating balance sheets of the Parent and its
Subsidiaries as of the end of such Fiscal Quarter, together with consolidated and consolidating
statements of earnings and cash flows for such Fiscal Quarter and for the period beginning with the
first day of such Fiscal Year and ending on the last day of such Fiscal Quarter, together with a
comparison with the corresponding period of the previous Fiscal Year and a comparison with the
budget for such period of the current Fiscal Year, certified by a Senior Officer of the Parent.

     10.1.3 Compliance Certificates. Contemporaneously with the furnishing of a copy of
each annual audit report pursuant to Section 10.1.1 and each set of quarterly statements
pursuant to Section 10.1.2, a duly completed Compliance Certificate, with appropriate
insertions, dated the date of such annual report or such quarterly statements and signed by a
Senior Officer of the Parent, containing (i) a computation of each of the financial ratios and
restrictions set forth in Section 11.14 and to the effect that such officer has not become
aware of any Event of Default or Unmatured Event of Default that has occurred and is continuing or,
if there is any such event, describing it and the steps, if any, being taken to cure it and (ii) a
written statement of the Parent’s management setting forth a discussion of the financial
condition, changes in financial condition and results of operations of the Parent and its
Subsidiaries.

     10.1.4 Reports to the SEC and to Shareholders. Promptly upon the filing or sending
thereof, notice (and if requested by the Administrative Agent or any Lender, copies) of all
regular, periodic or special reports of any Loan Party filed with the SEC; copies of all
registration statements of any Loan Party filed with the SEC (other than on Form S-8); and copies
of all proxy statements or other communications made to security holders generally.

     10.1.5 Notice of Default, Litigation and ERISA Matters. Promptly upon becoming aware
of any of the following, written notice describing the same and the steps being taken by the Parent
or the Subsidiary affected thereby with respect thereto:

     (a) the occurrence of an Event of Default or an Unmatured Event of Default;

     (b) any litigation, arbitration or governmental investigation or proceeding not
previously disclosed to the Lenders which has been instituted or, to the knowledge of the
Borrowers, is threatened against the Parent or any of its Subsidiaries or to which any of
the properties of any thereof is subject which could reasonably be expected to have a
Material Adverse Effect;

     (c) (i) the institution of any steps by any member of the Controlled Group or any other
Person to terminate any Pension Plan subject to Title IV of ERISA, or (ii) the failure of
any member of the Controlled Group to make a required contribution to any Pension Plan (if
such failure is sufficient to give rise to a Lien under Section 302(f) of ERISA) or to any
Multiemployer Pension Plan or (iii) the occurrence of any event with respect to any Pension
Plan, Foreign Benefit Plan or Multiemployer Pension Plan which

60

 

could result in the
incurrence by any member of the Controlled Group of any material liability, fine or penalty
(including any claim or demand for withdrawal liability or partial withdrawal from any
Multiemployer Pension Plan), or (iv) any material increase in the contingent liability of
the Parent or any Subsidiary with respect to any post-retirement welfare benefit plan or
other employee benefit plan of the Parent or another member of the Controlled Group, or any
notice that any Multiemployer Pension Plan is in reorganization, that increased
contributions may be required to avoid a reduction in plan benefits or the imposition of an
excise tax, that any such plan is or has been funded at a rate less than that required under
Section 412 of the Code, that any such plan is or may be terminated, or that any such plan
is or may become insolvent or (vi) any material change in the rate of contributions to any
pension schemes referred to in paragraph (d) of Section 10.7 paid or recommended to
be paid (whether by scheme actuary or otherwise) or required (by German or European law or
otherwise);

     (d) any material cancellation or material adverse change in any insurance maintained by
any Loan Party; or

     (e) any other event (including (i) any violation of any Environmental Law or the
assertion of any Environmental Claim or (ii) the enactment or effectiveness of any law, rule
or regulation) which could reasonably be expected to have a Material Adverse Effect.

     10.1.6 [Reserved]

     10.1.7 Management Reports. Promptly upon receipt thereof, copies of all detailed
financial and management reports submitted to the Parent or its Material Subsidiaries by
independent auditors in connection with each annual or interim audit made by such auditors of the
books of the Parent or any of its Material Subsidiaries.

     10.1.8 Projections. As soon as practicable, and in any event not later than the last
Business Day of the first month of each Fiscal Year, financial projections for the Parent and its
Subsidiaries for such Fiscal Year (including quarterly operating and cash flow budgets) prepared in
a manner consistent with the projections delivered by the Parent to the Lenders prior to the
Closing Date or otherwise in a manner reasonably satisfactory to the Administrative Agent,
accompanied by a certificate of a Senior Officer of the Parent on behalf of the Parent to the
effect that (a) such projections were prepared by the Parent in good faith, (b) the Parent believes
the assumptions contained in such projections are reasonable and (c) such projections have been
prepared in accordance with such assumptions.

     10.1.9 Default Notices. Promptly following receipt, copies of any material notices
(including notices of default, breach or acceleration) received from any holder of Debt or in
connection with any of the Related Transactions.

     10.1.10 Other Information. Promptly from time to time, such other information
concerning the Parent or any of its Subsidiaries as any Lender or the Administrative Agent may
reasonably request.

61

 

     10.2 Books, Records and Inspections. Keep, and cause each Subsidiary of the Parent to
keep, its books and records in accordance with sound business practices sufficient to allow the
preparation of financial statements in accordance with GAAP; permit, and cause each Subsidiary of
the Parent to permit, any Lender or the Administrative Agent or any representative thereof, during
reasonable business hours and upon reasonable notice (provided that no notice need be given during
the existence of an Event of Default), and no more than three (3) times in the aggregate in any one
Fiscal Year so long as no Event of Default or Unmatured Event of Default exists, to inspect the
properties and operations of the Parent or any of its Subsidiaries and permit, and cause each
Subsidiary of the Parent to permit, at any reasonable time and with reasonable notice (or at any
time without notice if an Event of Default exists), and no more than three (3) times in the
aggregate in any one Fiscal Year so long as no Event of Default or Unmatured Event of Default
exists, any Lender or the Administrative Agent or any representative thereof to visit any or all of
its offices, to discuss its financial matters with its officers and its independent auditors (and
the Borrowers hereby authorize such independent auditors to discuss such financial matters with any
Lender or the Administrative Agent or any representative thereof), and to examine (and, at the
expense of the Borrowers, photocopy extracts from) any of its books or other records; and permit,
and cause each Subsidiary of the Parent to permit, the Administrative Agent and its representatives
during reasonable business hours and upon reasonable notice (provided, that no notice need be given
during the existence of an Event of Default) and no more than three (3) times in the aggregate in
any one Fiscal Year so long as no Event of Default or Unmatured Event of Default exists, to inspect
the Inventory and other tangible assets of the Parent and its Subsidiaries, and to inspect, audit,
check and make copies of and extracts from the books, records, computer data, computer programs,
journals, orders, receipts, correspondence and other data relating to Inventory, Accounts and other
assets of the Parent and its Subsidiaries. All such inspections or audits by the Administrative
Agent shall be at the Parent’s expense; provided that so long as no Event of Default or
Unmatured Event of Default exists, the Parent shall not be required to reimburse the Administrative
Agent for inspections or audits more frequently than once each Fiscal Year.

     10.3 Maintenance of Property; Insurance.

     (a) Keep, and cause each Material Subsidiary of the Parent to keep, all property useful and
necessary in the business of the Parent and its Material Subsidiaries in good working order and
condition, ordinary wear and tear excepted.

     (b) Maintain, and cause each Subsidiary of the Parent to maintain, with responsible insurance
companies, such insurance coverage as may be required by any law or governmental regulation or
court decree or order applicable to it and such other insurance, to such extent and against such
hazards and liabilities, as is customarily maintained by companies similarly situated; and, upon
request of the Administrative Agent or any Lender, furnish to the Administrative Agent or such
Lender a certificate setting forth in reasonable detail the nature and extent of all insurance
maintained by the Loan Parties. The Parent shall cause each issuer of an insurance policy to
provide the Administrative Agent with an endorsement (i) showing the Administrative Agent as loss
payee with respect to each applicable policy of property or casualty insurance maintained by the
Borrower or any of its Domestic Subsidiaries and naming the Administrative Agent and Lenders as an
additional insured with respect to each policy of liability

62

 

insurance, (ii) providing that at least
30 days’ notice will be given to the Administrative Agent prior to any cancellation of, material
reduction or change in coverage provided by or other material adverse modification to such policy
and (iii) reasonably acceptable in all other respects to the Administrative Agent (provided, that
neither the Administrative Agent nor any Lender shall have any liability for any inadequacy of
coverages). The Parent shall cause the execution and delivery to the Administrative Agent of a
collateral assignment, in form and substance satisfactory to the Administrative Agent, of each
business interruption insurance policy maintained by the Parent and its Domestic Subsidiaries.

     (c) IN THE EVENT OF ANY FAILURE TO MAINTAIN ANY MATERIAL INSURANCE COVERAGE REQUIRED BY THIS
AGREEMENT, THE ADMINISTRATIVE AGENT MAY (BUT SHALL HAVE NO OBLIGATION TO), AFTER PROVIDING WRITTEN
NOTICE TO THE PARENT OF THE ADMINISTRATIVE AGENT INTENT TO DO SO, PURCHASE INSURANCE AT THE
PARENT’S EXPENSE TO PROTECT THE ADMINISTRATIVE AGENT’S AND THE LENDERS’ INTERESTS IN THE
COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT ANY LOAN PARTY’S INTERESTS. THE COVERAGE
THAT THE ADMINISTRATIVE AGENT PURCHASES MAY NOT PAY ANY CLAIM THAT IS MADE AGAINST ANY LOAN PARTY
IN CONNECTION WITH THE COLLATERAL. THE PARENT MAY LATER CANCEL ANY INSURANCE
PURCHASED BY THE ADMINISTRATIVE AGENT, BUT ONLY AFTER PROVIDING THE ADMINISTRATIVE AGENT WITH
EVIDENCE THAT THE PARENT HAS OBTAINED INSURANCE AS REQUIRED BY THIS AGREEMENT. IF THE
ADMINISTRATIVE AGENT PURCHASES INSURANCE FOR THE COLLATERAL, THE PARENT WILL BE RESPONSIBLE FOR THE
COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES THAT MAY BE IMPOSED WITH THE
PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE
INSURANCE. THE COSTS OF THE INSURANCE MAY BE ADDED TO THE PRINCIPAL AMOUNT OF THE LOANS OWING
HEREUNDER. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF THE INSURANCE THE PARENT AND
ITS SUBSIDIARIES MAY BE ABLE TO OBTAIN ON THEIR OWN.

     10.4 Compliance with Laws; Payment of Taxes and Liabilities. (a) Comply, and cause each
Subsidiary of the Parent to comply, in all material respects with all applicable laws, rules,
regulations, decrees, orders, judgments, licenses and permits, except where failure to comply could
not reasonably be expected to have a Material Adverse Effect; (b) without limiting clause
(a) above, ensure, and cause each Subsidiary of the Parent to ensure, that no person who owns a
controlling interest in or otherwise controls the Parent or any Subsidiary of the Parent is or
shall be (i) listed on the Specially Designated Nationals and Blocked Person List maintained by the
Office of Foreign Assets Control (“OFAC”), Department of the Treasury, and/or any other
similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order or regulation
or (ii) a person designated under Section 1(b), (c) or (d) of Executive Order No. 13224 (September
23, 2001), any related enabling legislation or any other similar Executive Orders, (c) without
limiting clause (a) above, comply, and cause each Subsidiary of the Parent to comply, with
all applicable Bank Secrecy Act (“BSA”) and anti-money laundering laws and regulations

63

 

and
(d) pay, and cause each Subsidiary of the Parent to pay, prior to delinquency, all taxes and other
governmental charges against it or any of its properties as well as claims of any kind which, if
unpaid, could become a Lien on any of its properties; provided that the foregoing shall not
require the Parent or any of its Subsidiaries to pay any such tax or charge so long as it shall
contest the validity thereof in good faith by appropriate proceedings and shall set aside on its
books adequate reserves with respect thereto in accordance with GAAP and, in the case of a claim
which could become a Lien on any properties, such contest proceedings shall stay the foreclosure of
such Lien or the sale of any portion of property(ies) to satisfy such claim. The Parent and its
Subsidiaries shall comply with the provisions of all material agreements binding on the Parent
such Subsidiary or its or their properties except where failure to comply could not reasonably be
expected to have a Material Adverse Effect. Without limiting the generality of the immediately
preceding sentence, the Parent shall comply with all of its material obligations under the Related
Agreements

     10.5 Maintenance of Existence, etc. Maintain and preserve, and (subject to Section
11.5) cause each Subsidiary of the Parent to maintain and preserve, (a) its existence and good
standing in the jurisdiction of its organization and (b) its qualification to do business and good
standing in each jurisdiction where the nature of
its business makes such qualification necessary (other than such jurisdictions in which the failure
to be qualified or in good standing could not reasonably be expected to have a Material Adverse
Effect).

     10.6 Use of Proceeds. The proceeds of the Bridge Loan shall be (i) used to finance the
Related Transactions and related costs and expenses and also costs and expenses relating to the
transactions contemplated by this Agreement, (ii) used by the Parent to make a loan in the
approximate amount of $7 million loan to BEC BV and BEC BV shall use the proceeds of such loan to
pay in full all Debt owed to Maple Bank GmbH, (iii) used to fund the redemption of all preferred
stock of MTC, (iv) used to cash collateralize (including without limitation by making a loan to BEC
BV who shall use the loan proceeds to so cash collateralize) the letters of credit and bank
guaranties of Maple Bank set forth in Schedule 11.1 and (iv) to the extent of any remaining
proceeds, to pay for the Specified Integration Expenses and Specified Restructuring Expenses and
for other working capital purposes and other general business purposes of the Parent and its
Subsidiaries consistent with the other terms and conditions of the Loan Documents. The proceeds of
the Initial German Revolving Loan and the Term Loans shall be used by Newco to make a distribution
to BEC BV, who shall use (x) that portion of such distribution necessary to repay the approximate
loan of $7,000,000 from the Parent to BEC BV referred to in clause (ii) of the immediately
preceding sentence for such repayment and the Parent shall use such repayment proceeds towards the
repayment of the Bridge Loan and (y) the remaining portion of such distribution to repay a loan not
to exceed $15,000,000 from BEC Inc. to BEC BV and BEC Inc. shall distribute such repayment
proceeds to Parent who shall use such proceeds towards the repayment of the Bridge Loan. The
proceeds of the initial Parent Revolving Loans shall be used by the Parent to pay (in full) any
portion of the Bridge Loan not paid pursuant to the provisions of the immediately preceding
sentence and for any costs and expenses relating to such borrowings or the borrowings of the
Initial German Revolving Loan and the Term Loans that have not been previously paid by the Parent.
All proceeds of any Parent Revolving Loans other than the initial Parent Revolving Loans shall be
used by the Parent solely for working capital purposes, for Capital Expenditures and for other
general business purposes of the Parent and its

64

 

Subsidiaries and consistent with the other terms
and provisions of the Loan Documents. All German Revolving Loans, other than the Initial German
Revolving Loans, shall be used for working capital purposes, for Capital Expenditures and for other
general business purposes of the German Opcos and consistent with the other terms and provisions of
the Loan Documents. No proceeds of any Loans shall be used, either directly or indirectly, for the
purpose, whether immediate, incidental or ultimate, of “purchasing or carrying” any Margin Stock.

     10.7 Employee Benefit Plans.

     (a) Maintain, and cause each other member of the Controlled Group to maintain, each Pension
Plan in substantial compliance with all applicable requirements of ERISA and the Code.

     (b) Comply in all material respects with the Multiemployer Pension Plan contribution
requirements under any applicable collective bargaining agreement.

     (c) Not, and not permit any other member of the Controlled Group to (i) seek a waiver of the
minimum funding standards of ERISA, (ii) terminate or withdraw from any Pension Plan subject to
Title IV of ERISA or Multiemployer Pension Plan or (iii) take any other action with respect to any
Pension Plan subject to Title IV of ERISA that would reasonably be expected to entitle the PBGC to
terminate, impose liability in respect of, or cause a trustee to be appointed to administer, any
Pension Plan, (iv) with respect to a Foreign Benefit Plan, permit any noncompliance with applicable
foreign law or the incurrence of any liability (other than routine liabilities with respect to the
payment of benefits pursuant to such Foreign Benefit Plan), unless the actions or events described
in clauses (i), (ii), (iii) and (iv) individually or in the aggregate would not have a Material
Adverse Effect.

     (d) Except where any failure to do so, either individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect, each German Borrower shall ensure that
all pension schemes maintained or operated by or for the benefits of any member of their group
and/or its employees: (i) are maintained and operated in all material respects in accordance with
all applicable German and European laws and contracts and their governing provisions; and (ii) are
funded substantially in accordance with the governing provisions of the scheme with any funding
shortfall advised by actuaries of recognized standing being rectified in accordance with those
governing provisions.

     10.8 Environmental Matters. Comply, and cause each of the Parent’s Subsidiaries to comply
with all Environmental Laws except for any non-compliance which would not reasonably be expected to
result, either individually or in the aggregate, in a Material Adverse Effect. If any release or
threatened release or other disposal of Hazardous Substances shall occur or shall have occurred on
any real property or any other assets of the Parent or any of its Subsidiaries or as result of its
or their operations, the Parent shall, or shall cause the applicable Subsidiary to, cause the
prompt containment and removal of such Hazardous Substances and the remediation of such real
property or other assets if and to the extent necessary to comply with all Environmental Laws
(subject to the Parent’s and applicable Subsidiary’s right to challenge, appeal and pursue all of
its other rights and remedies with respect to the same) except for any such release, threatened
release or disposal which would not reasonably be expected to result,

65

 

either individually or in the
aggregate, in a Material Adverse Effect. Without limiting the generality of the foregoing, the
Parent shall, and shall cause each applicable Subsidiary to, comply with any Federal or state
judicial or administrative order requiring the performance at any real property of the Parent or
any of its Subsidiaries of activities in response to the release or threatened release of a
Hazardous Substance (subject to the Parent’s and applicable Subsidiary’s right to challenge, appeal
and pursue all of its other rights and remedies with respect to the same). The Parent shall, and
shall cause its Subsidiaries to, dispose of Hazardous Substances, or of any other wastes generated
by them that are required to be disposed of under applicable Environmental Laws at licensed
disposal facilities, to be disposed of only at licensed disposal facilities which, to the knowledge
of the Parent or such Subsidiary, as applicable, are operating in material compliance with
Environmental Laws. Without limiting the foregoing, each of the Parent and its Subsidiaries shall
obtain all Environmental Licenses required in connection with its business and shall
comply with the terms of all such licenses except where failure to so obtain or so comply could not
reasonably be expected to have a Material Adverse Effect.

     10.9 Further Assurances. Take, and cause each Subsidiary of the Parent to take, such
actions as are necessary or as the Administrative Agent or the Required Lenders may reasonably
request from time to time to ensure that the applicable Obligations are secured as contemplated by
the Guaranty and Collateral Agreement (and any other applicable Collateral Document) and guaranteed
as contemplated by the Guaranty and Collateral Agreement including (a) the execution and delivery
of guaranties, security agreements, pledge agreements, mortgages, deeds of trust, financing
statements and other documents, and the filing or recording of any of the foregoing and (b) the
delivery of certificated securities and other Collateral with respect to which perfection is
obtained by possession.

     10.10 Certain Deposit Accounts. Unless the Administrative Agent otherwise consents in
writing, in order to facilitate the Administrative Agent’s and the Lenders’ maintenance and
monitoring of their security interests in the Collateral, maintain, on and after that date which is
90 days after the Closing Date, all principal deposit accounts of the Parent and its Domestic
Subsidiaries in the United States with the Administrative Agent; and each German Borrower shall
maintain, on and after that date which is 90 days after the Closing Date, a deposit account with
the Administrative Agent or an Affiliate of the Administrative Agent.

     10.11 Interest Rate Protection. Cause Newco to enter into, not later than 90 days after
the Closing Date, a Hedging Agreement with a term of at least three years on an ISDA standard form
with one or more Lenders or Affiliates thereof or with counterparties reasonably acceptable to the
Administrative Agent to hedge the interest rate with respect to not less than 30% of the principal
amount of the Term Loans in form and substance reasonably satisfactory to the Administrative Agent.
The obligations of Newco to any Lenders or Affiliates thereof under any such Hedging Agreement
shall be part of the Obligations and guaranteed and secured under the Guaranty and Collateral
Agreement.

     10.12 Organschaft. The Organschaft will be entered into by June 30, 2007.

     10.13 Delivery of German Pledge Agreements and Netherlands Pledge Agreements. Cause the
German Pledge Agreements and the Netherlands Pledge Agreements to be executed

66

 

and delivered (in
form reasonably satisfactory to the Administrative Agent) by that date which is the earlier of (i)
15 days after the Closing Date and (ii) the Permanent Loan Commencement Date.

     10.14 Change of Name. Newco shall change its name to Baldwin Germany Holding GmbH by
March 31, 2007 and shall notify the Administrative Agent of such change within 5 Business Days
after such change.

     SECTION 11 NEGATIVE COVENANTS

     Until the expiration or termination of the Commitments and thereafter until all Obligations
hereunder and under the other Loan Documents are paid in full and all Letters of Credit have been
terminated (or Cash Collateralized), the Parent (as to all matters) and the other Borrowers (as to
matters relating to such Borrower and its Subsidiaries) agrees that, unless at any time the
Required Lenders shall otherwise expressly consent in writing, it will:

     11.1 Debt. Not, and not permit any Subsidiary of the Parent to, create, incur, assume or
suffer to exist any Debt, except:

          (a) Obligations under this Agreement and the other Loan Documents;

          (b) Debt secured by Liens permitted by Section 11.2(d), and extensions, renewals and
refinancings thereof; provided that the aggregate amount of all such Debt at any time
outstanding shall not exceed $2,500,000 (computed for any such Debt incurred in Euros based on the
Euro Currency Equivalent amount in Dollars);

          (c) Debt of the Parent owed to any Domestic Subsidiary or Debt of any Domestic Subsidiary owed
to the Parent or to another Domestic Subsidiary; provided that such Debt shall be
subordinated to the Obligations to the extent set forth in the Guaranty and Collateral Agreement;

     (d) (i) the intercompany loans described in clause (ii) of the first sentence of Section
10.6; (ii) (aa) Debt of any Foreign Subsidiary that is a Material Subsidiary owed to the Parent
or any Material Subsidiary and (bb) any Debt of the Parent or any Domestic Subsidiary owed to any
Foreign Subsidiary that is a Material Subsidiary, provided, that (1) no Debt described in
subclause (aa) of this clause (ii) shall be created at a time when an Event of Default exists or if
an Event of Default would result therefrom, and (2) in the case of Debt described in subclause (bb)
of this clause (ii), such Debt shall be subordinated to the extent set forth in the Guaranty and
Collateral Agreement; (iii) (aa) Debt of any Foreign Subsidiary that is not a Material Subsidiary
owed to the Parent or any Material Subsidiary and any (bb) Debt of the Parent or any Domestic
Subsidiary owed to any Foreign Subsidiary that is not a Material Subsidiary provided that (1) no
such Debt described in subclause (aa) of this clause (iii) shall be created at a time when an Event
of Default exists or if an Event of Default would result therefrom, (2) the sum of the aggregate
outstanding principal of all Debt under this clause (iii) plus all capital contributions under
clause (iii) of Section 11.11(a) shall not exceed (at any one time existing) $5 million (in
the aggregate) and (3) the sum of the aggregate principal of all Debt under this clause (iii)
created in any Fiscal

67

 

Year plus all capital contributions made in such Fiscal Year under clause (iii) of Section
11.11(a) shall not exceed $2 million (in the aggregate) and (4) to the extent such Debt is owed
to the Parent or any Domestic Subsidiary, such Debt shall be subordinated to the extent set forth
in the Guaranty and Collateral Agreement; (for the avoidance of doubt, any intercompany Debt
covered by Section 11.1(f) below shall not be part of the Debt covered by the preceding
clauses (ii) and (iii) of this Section 11.1(d) and (iv) Debt of a Subsidiary that is not a
Material Subsidiary to another Subsidiary that is also not a Material Subsidiary;

     (e) Hedging Obligations incurred in favor of a Lender or an Affiliate thereof for bona
fide hedging purposes and not for speculation;

     (f) Debt (existing as of the Closing Date) described on Schedule 11.1 and any
extension, renewal or refinancing thereof so long as the principal amount thereof is not
increased and the terms of any such refinancing or modification to such Debt shall not be
materially adverse to the interests of the Parent or its Subsidiaries or the Lenders and
shall not violate or conflict with the terms and provisions of the Loan Documents and
provided, further, that any such Debt among the Parent and any of its Subsidiaries or among
the Parent Subsidiaries shall not be extended, renewed or refinanced with a third party
Lender (i.e., it will remain “intercompany” Debt);

     (g) the Debt to be Repaid (so long as such Debt is repaid on the Closing Date with the
proceeds of the Bridge Loan);

     (h) Contingent Liabilities (i) arising under the indemnification obligations of the
Parent under the Related Agreements, (ii) arising with respect to customary indemnification
obligations in favor of (aa) sellers in connection with Acquisitions permitted under
Section 11.5 and (bb) purchasers in connection with dispositions permitted under
Section 11.5;

     (i) reimbursement obligations with respect to letters of credit (other than the Letters
of Credit) and bank guaranties issued in the ordinary course of business, and Debt for
borrowed money, provided, that (a) such reimbursement obligations and Debt for borrowed
money are unsecured, and (b) the aggregate sum of (i) the aggregate sum of the outstanding
amounts of such letters of credit and bank guaranties and of any letters of credit and bank
guaranties consisting of Debt permitted under Section 11.1(f), (ii) the aggregate
sum of any outstanding reimbursement obligations with respect any amounts drawn on such
letters of credit and bank guaranties and drawn on any letters of credit and bank guaranties
consisting of Debt permitted under Section 11.1(f) and (iii) the aggregate amount of
such Debt for borrowed money shall not exceed, at any one time outstanding Euros 5,000,000.

     (j) unsecured Debt of the Japanese Subsidiaries not exceeding the Dollar Equivalent (at
any one time outstanding) of 520,000,000 Yen and

     (k) unsecured Debt under guaranties by the Parent permitted under Sections
11.1(b), 11.1(e), 11.1(h) and 11.1(i).

68

 

     11.2 Liens. Not, and not permit any Subsidiary of the Parent to, create or permit to exist
any Lien on any of its real or personal properties, assets or rights of whatsoever nature (whether
now owned or hereafter acquired), except:

     (a) Liens for taxes or other governmental charges not at the time delinquent or
thereafter payable without penalty or being contested in good faith by appropriate
proceedings and, in each case, for which it maintains adequate reserves;

     (b) Liens arising in the ordinary course of business (such as (i) Liens of carriers,
warehousemen, mechanics and materialmen and other similar Liens imposed by law and (ii)
Liens in the form of deposits or pledges incurred in connection with worker’s compensation,
unemployment compensation and other types of social security (excluding Liens arising under
ERISA) or in connection with surety bonds, bids, performance bonds and similar obligations)
for sums not overdue or being contested in good faith by appropriate proceedings and not
involving any advances or borrowed money or the deferred purchase price of property or
services and, in each case, for which it maintains adequate reserves;

     (c) Liens described on Schedule 11.2 as of the Closing Date and covering the
respective property listed on Schedule 11.2;

     (d) subject to the limitation set forth in Section 11.1(b), (i) Liens arising
in connection with Capital Leases (and attaching only to the property being leased), (ii)
Liens existing on property at the time of the acquisition thereof by any Loan Party (and not
created in contemplation of such acquisition) and (iii) Liens that constitute purchase money
security interests on any property securing debt incurred for the purpose of financing all
or any part of the cost of acquiring such property, provided that any such Lien
attaches to such property within 60 days of the acquisition thereof and attaches solely to
the property so acquired;

     (e) attachments, appeal bonds, judgments and other similar Liens, for sums not
exceeding $500,000 arising in connection with court proceedings, provided the
execution or other enforcement of such Liens is effectively stayed and the claims secured
thereby are being actively contested in good faith and by appropriate proceedings;

     (f) (i) zoning, easements, rights of way, restrictions, minor defects or irregularities
in title and other similar Liens not interfering in any material respect with the ordinary
conduct of the business of any Loan Party and (ii) licenses, sublicenses, leases or
subleases (but excluding any sale-leaseback transaction) granted to third Persons in the
ordinary course of business of the Parent and its Subsidiaries and not interfering in any
material respect with the business of the Parent or any of its Subsidiaries;

     (g) Liens arising under the Loan Documents;

69

 

     (h) Liens arising from the precautionary UCC financing statements filed under any
Operating Lease;

     (i) customary rights of set-off, revocation, refund or chargeback under deposit
agreements or under the Uniform Commercial Code of banks or other financial institutions
where any Loan Party maintains deposits (other than deposits intended as cash collateral) in
the ordinary course of business;

     (j) any Lien consisting of any interest or title of a licensor, sublicensor, lessor or
sublessor (excluding sale-leaseback transactions) in the property covered by any license or
lease agreement entered into by any Loan Party in the ordinary course of business and not
prohibited hereunder provided that any such Lien attaches solely to the relevant property so
licensed, sublicensed, leased or subleased; and

     (k) the replacement, extension or renewal of any Lien permitted by clauses (c)
or (d) above upon or in the same property subject thereto arising out of the
extension, renewal or replacement of the Debt secured thereby (without increase in the
amount thereof and without, in the case of clause (d), exceeding the amount
limitation in Section 11.1(b)).

     11.3 [Reserved].

     11.4 Restricted Payments. Not, and not permit any Subsidiary of the Parent to, (a) make
any dividend or other distribution to (or return of capital to) any holders of its Capital
Securities, (b) purchase or redeem any of its Capital Securities, (c) pay any management fees or
similar fees to any of its equityholders (direct or indirect) or any Affiliate thereof, except for
the payment of management fees by any Subsidiary to the Parent or (d) set aside funds for any of
the foregoing. Notwithstanding the foregoing, (i) any Subsidiary may pay dividends or make other
distributions (either directly or through concurrent upstream distributions) to the Parent or to a
Domestic Subsidiary that is a Full Pledging Guarantor, (ii) any Subsidiary of the Parent may pay
dividends or make other distributions to another Subsidiary the proceeds of which are used to make
(or make any permitted payment of) a loan representing Debt permitted by Sections 11.1(c)
or 11.1(d) or a capital contribution permitted by Sections 11.11(a), (iii) the
distributions described in the second sentence of Section 10.6 as part of the Post-Closing
Structural Steps, and (iv) distributions by any Subsidiary of the Parent to a Subsidiary that
directly or indirectly owns such distributing Subsidiary the proceeds of which are used to pay
consolidated taxes or franchise fees, accounting and legal expenses and similar operating expenses.

     11.5 Mergers, Consolidations, Sales. Not, and not permit any Subsidiary of the Parent to,
(a) be a party to any merger or consolidation, or purchase or otherwise acquire all or
substantially all of the assets or any Capital Securities of any class of, or any partnership or
joint venture interest in, any other Person (or otherwise engage in any Acquisition), or (b) sell,
transfer, convey, lease (except leases permitted
under Section 11.2(f)) or otherwise dispose of all or any substantial part of its assets or
Capital Securities (excluding the sale or issuance of the Capital Securities of the Parent as long
such issuance does not result in a Change of Control or other Event of Default or Unmatured Event
of Default, but including the sale or issuance of

70

 

Capital Securities of any Subsidiary) except for
sales of inventory in the ordinary course of business, the disposition of obsolete, uneconomic or
worn-out equipment or the trade-in of equipment for equipment of equal or better value provided
that such disposition or trade-in is in the ordinary course of business or the disposition or
discount by any Japanese Subsidiary of a note (payable to it) in the ordinary course of business;
except for (i) any such merger, consolidation, sale, transfer, conveyance, lease or assignment of
or by any Wholly-Owned Subsidiary into the Parent or into any Domestic Subsidiary that is a Full
Pledging Guarantor; (ii) any such purchase or other acquisition by the Parent or any Domestic
Subsidiary that is a Full Pledging Guarantor of the assets or Capital Securities of any
Wholly-Owned Subsidiary and all such transferred assets are pledged under the Guaranty and
Collateral Agreement for the Obligations of such Full Pledging Guarantor; (iii) the Parent or its
Subsidiaries may sell or discount, in each case without recourse and in the ordinary course of
business, overdue accounts receivable arising in the ordinary course of business, but only in
connection with the compromise or collection thereof and not as part of any financing transaction;
(iv) the Post-Closing Structural Steps may be consummated; (v) as long as no Event of Default or
Unmatured Event of Default then exists or will arise therefrom, the stock or assets of Oxy-Dry
Foods Blends, Inc. may be sold in an arms-length transaction provided, that the Net Cash Proceeds
of such sale are applied pursuant to Section 6.2.2(a)(i) (and the $500,000 “deductible”
provided for in Section 6.2.2(a)(i) shall not apply (i.e., the full amount of the Net Cash
Proceeds shall be applied)); (vi) as long as no Event of Default or Unmatured Event of Default then
exists or will arise therefrom, the sale of other assets to Persons other than Affiliates at arms
length terms provided that the Net Cash Proceeds thereof do not exceed (in the aggregate)
$2,000,000 in any Fiscal Year and the Net Cash Proceeds are applied pursuant to Section
6.2.2 to the extent required thereunder; and (vii) any Acquisition by the Parent or any
Material Subsidiary where:

          (A) the business or division acquired are for use, or the Person acquired is engaged, in the
businesses engaged in by the Parent and its Subsidiaries on the Closing Date or a business
reasonably related thereto;

          (B) immediately before and after giving effect to such Acquisition, no Event of Default or
Unmatured Event of Default shall exist;

          (C) the sum of the aggregate consideration to be paid by the Loan Parties (including any Debt
assumed or issued in connection therewith, the amount thereof to be calculated in accordance with
GAAP) in connection with all Acquisitions under this clause (vii) plus all Investments under
Section 11.11(j) shall not exceed $5,000,000;

          (D) immediately after giving effect to such Acquisition, the Parent and its Subsidiaries are
in pro forma compliance with all the financial ratios and restrictions set forth in Section
11.14;

          (E) in the case of the Acquisition of any Person, the board of directors or similar governing
body of such Person has approved such Acquisition;

          (F) reasonably prior to such Acquisition, the Administrative Agent shall have received
complete executed or conformed copies of each material document, instrument and

71

 

agreement to be
executed in connection with such Acquisition together with all lien search reports and lien release
letters and other documents as the Administrative Agent may require to evidence the termination of
Liens on the assets or business to be acquired;

          (G) not less than ten Business Days prior to such Acquisition, the Administrative Agent shall
have received an acquisition summary with respect to the Person and/or business or division to be
acquired, such summary to include a reasonably detailed description thereof (including financial
information) and operating results (including financial statements for the most recent 12 month
period for which they are available and as otherwise available), the terms and conditions,
including economic terms, of the proposed Acquisition, and the Parent’s calculation of pro forma
EBITDA relating thereto;

          (H) the Administrative Agent and Required Lenders shall have approved the Parent’s computation
of pro forma EBITDA;

          (I) the Parent or the applicable acquiring Subsidiary shall use reasonable best efforts to
obtain consents in favor of the Administrative Agent and the Lenders to the collateral assignment
of rights and indemnities under the related acquisition documents and opinions of counsel for the
Loan Parties and (if delivered to the Loan Party) the selling party in favor of the Administrative
Agent and the Lenders have been delivered;

          (J) the provisions of Section 10.10 have been satisfied or will be satisfied within 60
days of the date of the closing of the Acquisition;

          (K) all required actions under the Guaranty and Collateral Agreement (and any other applicable
Collateral Document) will be satisfied simultaneously with the closing of such Acquisition;

          (L) if the Acquisition is structured as a merger, the Parent or a Wholly-Owned Subsidiary is
the surviving entity; and

          (M) the Required Lenders shall approve of any material contingent liabilities (including any
environmental), if any, of the target company or relating to the purchased assets.

     11.6 Modification of Organizational Documents. Not permit the charter, by-laws or other
organizational documents of the Parent or any Subsidiary of the Parent to be amended or modified in
any way which could reasonably be expected to materially adversely affect the interests of the
Lenders or the Administrative Agent; not change, or allow any Loan Party to change, its
jurisdiction of formation or its organizational form provided that any amendments, modifications or
changes contemplated by the Post-Closing Structural Steps are expressly permitted hereunder.

     11.7 Transactions with Affiliates. Not, and not permit any Subsidiary of the Parent to,
enter into, or cause, suffer or permit to exist any transaction, arrangement or contract (or
modification thereof) with any of its other Affiliates unless in the ordinary course of business
and on terms which are no less favorable, in all material respects, to the Parent or its
Subsidiaries, as the case may be, than are obtainable from any Person which is not one of its

72

 

Affiliates and such transaction, arrangement or contract (or modification) could not reasonably be
expected to have a Material Adverse Effect; provided that nothing in this Section
11.7 shall prohibit the Parent, any other Borrower or any other Subsidiaries from engaging in
the following transactions: (i) subject to the proviso at the end of this Section 11.7, the
performance of the Parent’s, another Borrower’s or any other Subsidiary’s obligations under any
employment contract, collective bargaining agreement, employee benefit plan, related trust
agreement or any other similar arrangement heretofore or hereafter, in each case entered into in
the ordinary course of business, (ii) subject to the proviso at the end of this Section
11.7, the payment of compensation to employees, officers, managers, members, directors (other
than the payment of directors’ fees to directors that are employees of any Loan Party or any of
their consultants, in each case in the ordinary course of business); (iii) subject to the proviso
at the end of this Section 11.7, the maintenance of benefit programs or arrangements for
employees, officers, managers, members or directors, including, without limitation, vacation plans,
health and life insurance plans, deferred compensation plans, and retirement or savings plans and
similar plans; in each case in the ordinary course of business; (iv) any transaction with an
Affiliate expressly permitted under Section 11.1, Section 11.2, Section
11.3, Section 11.4, Section 11.5, or Section 11.11; (v) the payment of
management fees to the Parent; (vi) the taking of and consummation of the Post-Closing Structural
Steps; (vii) any payments of royalties to the Parent; and (viii) Rabbi Trust Permitted Payments;
provided, further, that any compensation paid or payable to executive officers of
the Parent or its Subsidiaries shall be approved by the Board of Directors of the Parent.

     11.8 [Intentionally Omitted]

     11.9 Inconsistent Agreements, etc. Not, and not permit any Subsidiary of the Parent to,
enter into any agreement containing any provision which would (a) be violated or breached by any
borrowing hereunder or issuance of any Letter of Credit, or by the performance by the Parent or any
of its Subsidiaries of any of its Obligations hereunder or under any other Loan Document, (b)
prohibit the Parent or any of its Subsidiaries from granting to the Administrative Agent and the
Lenders, a Lien on any of its assets (whether or not such Lien is now required or granted under the
Loan Documents) or (c) create or permit to exist or become effective any encumbrance or restriction
on the ability of any Subsidiary of the Parent to (i) pay dividends or make other distributions to
the Parent or any other Subsidiary, or pay any Debt owed to the Parent or any other Subsidiary,
(ii) make loans or advances to the Parent or any of its Subsidiaries or (iii) transfer any of its
assets or properties to the Parent or any of its Subsidiaries, other than (A) restrictions or
conditions imposed by any agreement relating to purchase money Debt, Capital Leases and other
secured Debt permitted by this Agreement if such restrictions or conditions apply only to the
property or assets securing
such Debt and (B) customary provisions in leases and other contracts restricting the assignment
thereof.

     11.10 Business Activities; Issuance of Equity. Not, and not permit any Subsidiary of the
Parent to, engage in any line of business other than the businesses engaged in on the date hereof
and businesses reasonably related or incidental thereto. Not, and not permit any Subsidiary of the
Parent to, issue any Capital Securities other than (a) any issuance of shares of the Parent’s
Capital Securities provided such issuance does not result in a Change of Control or

73

 

other Event of
Default or Unmatured Event of Default or (b) any issuance by a Subsidiary to the Parent or another
Subsidiary expressly permitted under Section 11.5. 

     11.11 Investments. Not, and not permit any other Loan Party to, make or permit to exist
any Investment in any other Person, except the following:

     (a) (i) capital contributions (made either directly or through concurrent downstream
contributions) by the Parent or any Subsidiary to any Full Pledging Guarantor, (ii) capital
contributions by the Parent or any Subsidiary of the Parent to any Foreign Subsidiary that
is a Material Subsidiary (made either directly or through concurrent downstream
contributions) provided that no such capital contribution under this clause (ii) shall be
made at a time when an Event of Default exists or if an Event of Default would result
therefrom, and (iii) capital contributions by the Parent or any Subsidiary of the Parent to
any Foreign Subsidiary that is not a Material Subsidiary (made either directly or through
concurrent downstream contributions) provided, that (aa) no such capital contribution under
this clause (iii) shall be made at a time when an Event of Default exists or if an Event of
Default would result therefrom, (bb) the sum of the aggregate amount of all capital
contributions made under this clause (iii) plus the outstanding principal of all Debt under
clause (iii) of Section 11.1(d) shall not exceed (at any one time existing)
$5,000,000 (in the aggregate) and (cc) the sum of the aggregate amount of all capital
contributions made under this clause (iii) in any Fiscal Year plus the outstanding principal
of all Debt under clause (iii) of Section 11.1(d) created in such Fiscal Year shall
not exceed $2,000,000 (in the aggregate); (for the avoidance of doubt, any capital
contributions covered by Section 11.11(i) below shall not be part of the capital
contributions covered by the preceding clauses (ii) and (iii) of this Section
11.11(a);

     (b) Investments constituting Debt permitted by Section 11.1;

     (c) Contingent Liabilities constituting Debt permitted by Section 11.1 or Liens
permitted by Section 11.2;

     (d) Cash Equivalent Investments;

     (e) bank deposits in the ordinary course of business, provided that Section
10.10 is complied with (to the extent applicable);

     (f) Investments in securities of Account Debtors received pursuant to any plan of
reorganization or similar arrangement upon the bankruptcy or insolvency of such account
debtors;

     (g) Investments (subject to the limitation of Section 11.5(vii)(C)) to
consummate (i.e., used to pay the purchase price for) Acquisitions permitted by Section
11.5;

     (h) Investments contemplated by the Post-Closing Structural Steps;

74

 

     (i) Investments listed on Schedule 11.11 as of the Closing Date; and

     (j) other Investments not consisting of capital contributions to Subsidiaries and not
consisting of Investments to consummate Acquisitions permitted under Section 11.5  provided
that (aa) the sum of all such Investments under this Section 11.11(j) plus the aggregate
consideration referred to in clause (C) of Section 11.5(vii) and paid by the Loan Parties
shall not exceed $5,000,000, (bb) no Event of Default or Unmatured Event of Default shall exist at
the time or shall result from such Investment under this Section 11.11(j), (cc) the Loan
Party making the Investment under this clause (j) shall not incur any material liabilities as a
result thereof and (dd) all required actions under the Guaranty and Collateral Agreement (and any
other applicable Collateral Document) will be satisfied in connection with such Investment.

; provided that any Investment which when made complies with the requirements of the
definition of the term “Cash Equivalent Investment” may continue to be held notwithstanding
that such Investment if made thereafter would not comply with such requirements.

     11.12 Restriction of Amendments to Certain Documents. Not materially amend or otherwise
materially modify, or waive any material rights under, the Related Agreements (without limiting
what is otherwise material, any amendment, modification or other waiver which is adverse to the
interests of the Lenders or the Administrative Agent shall be deemed material).

     11.13 Fiscal Year. Not change Parent’s Fiscal Year.

11.14 Financial Covenants.

     11.14.1 EBITDA. Not Permit EBITDA for (i) each of the Computation Periods ending
December 31, 2006 and March 31, 2007 to be less than $10,000,000, (ii) each of the Computation
Periods ending June 30, 2007 and September 30, 2007 to be less than $11,000,000 and (iii) any
Computation Period ending on or after December 31, 2007 to be less than $12,000,000.

     11.14.2 Fixed Charge Coverage Ratio. Not permit the Fixed Charge Coverage Ratio for
any Computation Period, commencing with the Computation Period ending December 31, 2006, to be less
than 1.25 to 1.0.

     11.14.3 Total Debt to EBITDA Ratio. Not permit the Total Debt to EBITDA Ratio as of
the last day of any Computation Period, commencing with the Computation Period ending December 31,
2006, to exceed the applicable ratio set forth below for such Computation Period:

75

 

	 	 	 
	 	 	Total Debt to
	Computation Period	 	EBITDA Ratio
	Any Computation Period ending on or after December 31, 2006
and on or before March 31, 2009
	 	3.50 to 1.0
	 
	 	 
	Any Computation Period ending on or after June 30, 2009
	 	3.00 to 1.0

     11.14.4 [Intentionally Omitted]

     11.15 Cancellation of Debt.

 Not, and not permit any Subsidiary of the Parent to, cancel any claim or debt owing to it by
the Parent or any Subsidiary, except for reasonable consideration or in the ordinary course of
business, and except for the cancellation of debts or claims (if an Event of Default does not then
exist) not to exceed $100,000 in any Fiscal Year. In addition, any material management or
licensing arrangements and fees between the Parent and its Subsidiaries shall be maintained in all
material respects.

     11.16 Holding Company Activities.

 The Holding Companies shall only engage in the activities permitted under Section 5.11 of the
Guaranty and Collateral Agreement.

     11.17 Payments on the Rabbi Trust. Not, and not permit any Subsidiary to, make any
payment, contribution or other transfer of monies or other properties to the Rabbi Trust other
than (i) the Rabbi Trust Existing Contributions and (ii) the Rabbi Trust Permitted Payments.

     SECTION 12 EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

     The obligation of each Lender to make its Loans and of the Issuing Lender to issue Letters of
Credit is subject to the following conditions precedent:

     12.1 Bridge Loan. The obligation of the Bridge Lender to make the Bridge Loan is, in
addition to the conditions precedent specified in Section 12.2, subject to the conditions
precedent that (a) all Debt to be
Repaid has been (or concurrently with the initial borrowing will be) paid in full, and that all
agreements and instruments governing the Debt to be Repaid and all Liens securing such Debt to be
Repaid have been (or concurrently with the initial borrowing will be) terminated (it being
understood and agreed that the Debt set forth in Schedule 11.1 may remain outstanding) and
(b) the Administrative Agent shall have received (i) evidence, reasonably satisfactory to the
Administrative Agent, that the Parent has consummated, simultaneously with the making of the Bridge
Loan, the Related Transactions in accordance with the terms of the Related Agreements (without any
material amendment thereto or material waiver thereunder, or change to the disclosure schedules
thereto, unless consented thereto by the Administrative Agent) and (ii) all of the following, each
duly executed and dated the Closing Date (or such earlier date as shall be satisfactory to the
Administrative Agent), in form and substance

76

 

satisfactory to the Administrative Agent (and the date
on which all such conditions precedent have been satisfied or waived in writing by the
Administrative Agent and the Bridge Lender is called the “Closing Date”):

     12.1.1 Bridge Loan Note. The Bridge Loan Note.

     12.1.2 Authorization Documents. (i) For each of the Parent and its Material
Subsidiaries, such Person’s (a) charter (or similar formation document), certified by the
appropriate governmental authority to the extent available in any relevant jurisdiction; (b) good
standing certificates (except for Baldwin U.K. Holding Limited and Acrotec UK Ltd.) in its
jurisdiction of incorporation (or formation) and in each other jurisdiction requested by the
Administrative Agent in which such Person is registered as a foreign qualified entity to the extent
available in any relevant jurisdiction; and (c) bylaws (or similar governing document) (without
limiting the generality of the foregoing, with respect to each German Borrower the following
constitutional documents shall be delivered: a certified copy of its articles of association
(Satzung) and an up-to-date certified extract from the commercial register (Handelsregister) as at
a date no earlier than 15 days prior to the date of this Agreement); and (ii) solely with respect
to the Parent and those Material Subsidiaries executing any Loan Document, (x) resolutions of its
board of directors or any supervisory board (or similar governing body), and (to the extent
necessary) any shareholders’ meeting, approving and authorizing such Person’s execution, delivery
and performance of the Loan Documents to which it is party and the transactions contemplated
thereby; and (y) signature and incumbency certificates of its officers executing any of the Loan
Documents (it being understood that the Administrative Agent and each Lender may conclusively rely
on each such certificate until formally advised by a like certificate of any changes therein), all
certified by its secretary or an assistant secretary (or similar officer) as being in full force
and effect without modification.

     12.1.3 Consents, etc. Certified copies of all documents evidencing any necessary
corporate or partnership action, consents, governmental approvals and powers of attorney (if any)
required for the
execution, delivery and performance by the Parent and its applicable Subsidiaries of the
documents referred to in this Section 12.

     12.1.4 Letter of Direction. A letter of direction containing funds flow information
with respect to the proceeds of the Loans on the Closing Date.

     12.1.5 Guaranty and Collateral Agreement and Other Collateral Documents. (i) A
counterpart of the Guaranty and Collateral Agreement executed by each Borrower, each Domestic
Subsidiary and BEC BV, together with all instruments, transfer powers and other items required to
be delivered in connection therewith and (ii) original counterparts of the Foreign Pledge
Agreements not consisting of the German Pledge Agreements or the Netherlands Pledge Agreements
along with such documents and other items required to be delivered in connection therewith.

     12.1.6 Perfection Certificate. A Perfection Certificate completed and executed by the
Parent.

77

 

     12.1.7 Collateral Access Agreements. A Collateral Access Agreement with respect to
each leased location for which the Administrative Agent requires such an agreement.

     12.1.8 [Reserved] 

     12.1.9 [Reserved].

     12.1.10 Opinions of Counsel. Opinions of counsel for the Borrowers and the Domestic
Subsidiaries of the Parent, including local counsel reasonably requested by the Administrative
Agent with respect to the Loan Documents and transactions thereunder, and all opinions issued
pursuant to the Related Transactions with reliance language acceptable to the Administrative Agent.

     12.1.11 Insurance. Evidence of the existence of insurance required to be maintained
pursuant to Section 10.3(b), together with evidence that the Administrative Agent has been
named as a lender’s loss payee and an additional insured on the Parent’s and the Domestic
Subsidiaries’ related insurance policies in the United States. A collateral assignment (to the
Administrative Agent) of business interruption insurance policies shall also be required.

     12.1.12 Copies of Documents. (i) Copies of the Related Agreements certified by the secretary or assistant secretary (or
similar officer) of the Parent as being true, accurate and complete and (ii) copies of any material
agreements or other material contracts requested by the Administrative Agent.

     12.1.13 Payment of Fees. Evidence of payment by the Parent of all accrued and unpaid
fees, costs and expenses to the extent then due and payable on the Closing Date, together with all
Attorney Costs of the Administrative Agent to the extent invoiced prior to the Closing Date.

     12.1.14 Solvency Certificate. A Solvency Certificate executed by a Senior Officer of
the Parent on behalf of the Parent.

     12.1.15 Pro Forma. A consolidated pro forma unaudited balance sheet
of the Parent and its Subsidiaries (based on the September 30, 2006 financial statements) adjusted
to give effect to the consummation of the Related Transactions and the financings contemplated
hereby as if such transactions had occurred on such date, consistent in all material respects with
the sources and uses of cash as previously described to the Administrative Agent and Lenders and
the forecasts previously provided to the Lenders.

     12.1.16 [Intentionally Omitted].

     12.1.17 Search Results; Lien Terminations. Certified copies of Uniform Commercial
Code search reports dated a date no more than 30 days prior to the Closing Date, listing all
effective financing statements which name the Parent or any of its Subsidiaries (under their
present names and any previous names and including, for the avoidance of doubt, MTC and its
Subsidiaries) as debtors, together with (a) copies of such financing statements, and (b) payoff
letters evidencing repayment in full of all Debt to be Repaid, the termination of all agreements
relating thereto and the release of all Liens granted in connection therewith, with Uniform

78

 

Commercial Code or other appropriate termination statements and documents effective to evidence the
foregoing (other than Liens permitted by Section 11.2) and (c) such other Uniform
Commercial Code termination statements and other releases as the Administrative Agent may
reasonably request to reflect the release of any other liens that are not Permitted Liens. Without
limiting the generality of the foregoing, there shall be delivered, for each German Borrower, a
copy of an executed release agreement evidencing that all Liens on any of their assets not
consisting of Permitted Liens will be released prior to or simultaneously with the making of the
Bridge Loan. Copies of such tax and judgment lien searches as shall be required by the
Administrative Agent shall also be required.

     12.1.18 Filings, Registrations and Recordings. The Administrative Agent shall have received each document (including Uniform Commercial
Code financing statements) required by the Collateral Documents or under law or reasonably
requested by the Administrative Agent to be filed, registered or recorded in order to create in
favor of the Administrative Agent, for the benefit of the Lenders, a perfected Lien on the
collateral described therein, prior to any other Liens (subject only to Liens permitted pursuant to
Section 11.2), in proper form for filing, registration or recording; and such other steps
shall be taken as shall be necessary to properly perfect (and establish the priority of) the Liens
under the Collateral Documents

     12.1.19 Financial Statements. All of the financial statements referred to in
Section 9.4, and all projections required by the Lenders, shall have been delivered to the
Administrative Agent (for delivery to the Lenders).

     12.1.20 Closing Certificate, Consents and Permits. A certificate executed by an
officer of the Parent on behalf of the Parent certifying (a) the matters set forth in Section
12.2.1 as of the Closing Date, (b) that the trailing EBITDA of the Parent and its Subsidiaries
on a trailing twelve-month basis (assuming the Related Transactions have been consummated) for the
twelve months ending September 30, 2006 is at least $10.0 million, (c) that the Total Debt to
EBITDA Ratio as of the Closing Date (assuming the Bridge Loan has been made and the Related
Transactions have been consummated and using the EBITDA for the twelve months ending September 30,
2006) is 3.50 to 1.00 or less, (d) that there has been no material adverse change in the business,
assets, liabilities, properties, condition (financial or otherwise), results of operations or
prospects of (i) Parent and its Subsidiaries (including without limitation MTC and its
Subsidiaries) taken as a whole since September 30, 2006, and (ii) the Parent and its Subsidiaries
(not taking into account MTC and its Subsidiaries) taken as a whole since September 30, 2006, (e)
that the Parent and its Subsidiaries shall have no Debt, as of the Closing Date, other than the
Bridge Loan and Debt permitted under Section 11.1, (f) the occurrence of the closing of the
Related Transactions and that such closing has been consummated in accordance with the terms of the
Related Agreements without any material amendment or waiver thereof, or any change to the
disclosure schedules thereto, which has not been approved in writing by the Administrative Agent,
together with evidence that (i) all necessary governmental, regulatory, creditor, shareholder,
partner and other material consents, approvals and exemptions required to be obtained by the Parent
(or its Subsidiaries) in connection with the Related Transactions, the Loans or the continuing
operations of the Parent and its Subsidiaries have been duly obtained and are in full force and
effect and (ii) all material permits necessary for the operation of any business(es) of the Parent
and its Subsidiaries (including those acquired in connection with the Related Transactions) have
been

79

 

obtained, and (g) that the costs and expenses of the Related Transactions and the closing of
the Bridge Loan and the initial Permanent Loans shall not exceed $3,250,000.

     12.1.21 Other. Such other documents as the Administrative Agent or any Lender may
reasonably request.

     12.2 Conditions.The obligation (a) of each Lender to make each Loan and (b) of the Issuing Lender to issue
each Letter of Credit is subject to the following further conditions precedent that:

     12.2.1 Compliance with Warranties, No Default, etc. Both before and after giving
effect to any borrowing of any Loan and the issuance of any Letter of Credit, the following
statements shall be true and correct:

     (a) the representations and warranties of each Loan Party set forth in this Agreement
and the other Loan Documents shall be true and correct in all respects (or if the applicable
representation or warranty is not qualified by a materiality qualifier, true and correct in
all material respects) with the same effect as if then made (except to the extent stated to
relate to a specific earlier date, in which case such representations and warranties shall
be true and correct in all respects (or if the applicable representation or warranty is not
qualified by a materiality qualifier, true and correct in all material respects) as of such
earlier date); and

     (b) no Event of Default or Unmatured Event of Default shall have then occurred and be
continuing.

     12.2.2 Confirmatory Certificate. If requested by the Administrative Agent or any
Lender, the Administrative Agent shall have received (in sufficient counterparts to provide one to
each Lender) a certificate dated the date of such requested Loan or Letter of Credit and signed by
a duly authorized representative of the applicable Borrower (or the Parent as representative of the
applicable Borrower) as to the matters set out in Section 12.2.1; provided, that it is
understood and agreed, that, regardless of whether such a certificate is requested, each request by
any Borrower for the making of a Loan or the issuance of a Letter of Credit shall be deemed to
constitute a representation and warranty by the Borrowers that the conditions precedent set forth
in Section 12.2.1 will be satisfied at the time of the making of such Loan or the issuance
of such Letter of Credit.

     12.3 Additional Conditions to Term Loans, Initial German Revolving Loan, and the Initial Parent
Revolving Loans. In addition to, and not in limitation of, all other applicable conditions,
the making of the Term Loans, the Initial German Revolving Loan and the initial Parent Revolving
Loan is subject to the following additional conditions:

     12.3.1 Post-Closing Structural Steps. The Post-Closing Structural Steps shall be
completed prior to, or simultaneously with, the making of such Loans.

     12.3.2 Bridge Loan. (a) The Bridge Loan shall be paid in full with the use of the
proceeds of such Loans in accordance with the requirements of this Agreement and (b) and the

80

 

Parent
shall pay to the Issuing Lender all unpaid fees accrued on the Initial Letters of Credit from the
Closing Date until the Permanent Loan Commencement Date.

     12.3.3 Permanent Loans Notes. The Permanent Loans Notes shall be executed and
delivered by the Borrowers.

     12.3.4 Additional Fees and Expenses. Any additional fees and any additional amounts of
Attorneys Costs, associated with such Loans or the making thereof (or otherwise incurred in
connection herewith), shall be paid by the Parent.

     12.3.5 Authorizing Resolutions; Legal Opinion. Delivery of such (i) authorizing
resolutions and other corporate/company documentation regarding the Permanent Loans Notes and (ii)
legal opinions as to the Permanent Loans Notes and the German Pledge Agreements (including, if
requested, as to the confirmation agreements contemplated by the German Pledge Agreements in
connection with the change in ownership of the German Borrowers as a result of the Post-Closing
Structural Steps), in each case as shall be reasonably required by the Administrative Agent.

     12.3.6 Notice. The Parent shall provide to the Administrative Agent at least four
Business Days prior written notice of the proposed date of the funding of such Loans.

     12.3.7 Confirmations. (a) If the Term Loans are made in Euros, any confirmation
required by the Administrative Agent pursuant to Section 6.4.2 is executed and delivered
and (b) any confirmation agreements contemplated by the German Pledge Agreements in connection with
the change in ownership of the German Borrowers as a result of the Post-Closing Structural Steps
are executed and delivered.

     12.3.8 Timing. Such Loans must be made on or prior to December 29, 2006.

     12.4 Additional Conditions to Issuance of Letters of Credit. In addition to, and not in
limitation of, any other conditions to the issuance of any Letter of Credit, the Issuing Lender
shall not be under any obligation to issue (or amend) any Letter of Credit if:

     (i) any order, judgment or decree of any governmental authority or arbitrator
shall by its terms purport to enjoin or restrain the Issuing Lender from issuing (or
amending) such Letter of Credit, or any law, rule or regulation applicable to the
Issuing Lender or any request or directive (whether or not having the force of law)
from any governmental authority with jurisdiction over the Issuing Lender shall
prohibit, or request that the Issuing Lender refrain from, the issuance (or
amendment) of letters of credit generally or such Letter of Credit in particular or
shall impose upon the Issuing Lender with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which the Issuing Lender is not
otherwise compensated hereunder) not in effect on the date hereof, or shall impose
upon the Issuing Lender any unreimbursed loss, cost or expense

81

 

which was not
applicable on the date hereof and which the Issuing Lender in good faith deems
material to it;

     (ii) the issuance (or amendment) of such Letter of Credit would violate (A) any
laws, rules or regulations or (B) one or more policies of the Issuing Lender,
provided that such policies have been adopted in good faith;

     (iii) such Letter of Credit contains any provisions for automatic reinstatement
of the stated amount after any drawing thereunder; or

     (iv) a default of any Lender’s obligations to fund under Section 2.3.4
exists or any Lender which has a Revolving Credit Commitment has failed to fund any
portion of any participations in connection with any Letter of Credit required to be
funded by it hereunder, unless the Issuing Lender has entered into satisfactory
arrangements with the applicable Borrower or such Lender to eliminate the Issuing
Lender’s risk with respect to such Lender.

     SECTION 13 EVENTS OF DEFAULT AND THEIR EFFECT.

     13.1 Events of Default. Each of the following shall constitute an Event of Default under
this Agreement:

     13.1.1 Non-Payment of the Loans, etc. Default in the payment when due of the
principal of any Loan; or default, and continuance thereof for five days, in the payment when due
of any interest, fee, reimbursement obligation with respect to any Letter of Credit or other amount
payable by the Parent or any of its Subsidiaries hereunder or under any other Loan Document.

     13.1.2 Non-Payment of Other Debt. Any default shall occur under the terms applicable
to any Debt of the Parent or any of its Subsidiaries in an aggregate amount (for all such Debt so
affected and including undrawn committed or available amounts and amounts owing to all creditors
under any combined or syndicated credit arrangement) exceeding $1,000,000 and such default shall
(a) consist of the failure to pay such Debt when due (after the expiration of any applicable grace
period), whether by acceleration or otherwise, or (b) accelerate the maturity of such Debt or
permit the holder or holders thereof, or any trustee or agent for such holder or holders, to cause
such Debt to become due and payable (or require any Loan Party to purchase or redeem such Debt or
post cash collateral in respect thereof) prior to its expressed maturity but excluding mandatory
prepayments by reason of casualty or condemnation.

     13.1.3 [Intentionally Omitted]

     13.1.4 Bankruptcy, Insolvency, etc. The Parent or any of its Material Subsidiaries
becomes insolvent or generally fails to pay, or admits in writing its inability or refusal to pay,
debts as they become due; or the Parent or any of its Material Subsidiaries applies for, consents
to, or acquiesces in the appointment of a trustee, receiver or other custodian for the Parent or
any of its Material Subsidiaries or any property thereof, or makes a general assignment for the
benefit

82

 

of creditors; or, in the absence of such application, consent or acquiescence, a trustee,
receiver or other custodian is appointed for the Parent or any of its Material Subsidiaries or for
a substantial
part of the property of any thereof and is not discharged within 60 days; or any bankruptcy,
reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency
law, or any dissolution or liquidation proceeding, is commenced in respect of the Parent or any of
its Material Subsidiaries, and if such case or proceeding is not commenced by the Parent or any of
its Material Subsidiaries, it is consented to or acquiesced in by the Parent or any of its Material
Subsidiaries, or remains for 60 days undismissed; or the Parent or any of its Material Subsidiaries
takes any action to authorize, or in furtherance of, any of the foregoing. Without limiting the
generality of the foregoing, it shall be an Event of Default if a German Borrower (i) becomes
insolvent or (ii) a German Borrower’s insolvency is imminent or (iii) a German Borrower is
over-indebted, respectively, each in accordance with sections 17, 18 or 19 of the German Insolvency
Code (Insolvenzordnung), or (iv) an application for the opening of insolvency proceedings over a
Borrower’s assets has been made or (v) similar proceedings in any other jurisdiction have been
opened unless any application for the opening of insolvency proceedings or similar proceedings is
frivolous or vexatious (rechtsmißbräuchlich oder offensichtlich unbegründet) and is discharged or
dismissed within 14 days of its submission to the court.

     13.1.5 Non-Compliance with Loan Documents. (a) Failure by any Loan Party to comply
with or to perform any covenant set forth in Sections 10.1.5, 10.3(b) (unless such failure
is of a non-material nature in which case such failure shall be covered by clause (c) below),
10.5, 10.6, or 10.11, or Section 11; (b) failure of any Loan Party
to comply with any provisions of the Agent Fee Letter (and not constituting an Event of Default
under any other provision of this Section 13 above) and the continuance of such failure
described in this clause (b) for 20 days after the earlier to occur of (i) any Lender or the
Administrative Agent providing notice of such failure or (ii) any Senior Officer of the Parent or
any of its Subsidiaries becoming aware of such failure or (c) failure by any Loan Party to comply
with or to perform any other provision of this Agreement or any other Loan Document (and not
constituting an Event of Default under any other provision of this Section 13) and
continuance of such failure described in this clause (c) for 30 days after the earlier to
occur of (i) any Lender or the Administrative Agent providing notice of such failure or (ii) any
Senior Officer or the Parent or any of its Material Subsidiaries becoming aware of such failure.

     13.1.6 Representations; Warranties. Any representation or warranty made by any Loan
Party herein or any other Loan Document is breached or is false or misleading in any material
respect, or any schedule, certificate, financial statement, report, notice or other writing
furnished by any Loan Party to the Administrative Agent or any Lender in connection herewith is
false or misleading in any material respect on the date as of which the facts therein set forth are
stated or certified.

     13.1.7 Pension Plans. (a) Any Person institutes steps to terminate a Pension Plan
that is subject to Title IV of ERISA if as a result of such termination the Parent or any member of
the Controlled Group could reasonably be expected to be required to make a contribution to such
Pension Plan; (b) a contribution failure occurs with respect to any Pension Plan sufficient to give
rise to a Lien under Section 302(f) of ERISA; (c) the Unfunded Liability exceeds twenty percent

83

 

of
the Total Plan Liability, (d) there shall occur any withdrawal or partial withdrawal from a
Multiemployer Pension Plan; or (e) with respect to any Foreign Benefit Plan or German pension
scheme (as described in Section 10.7(d)), noncompliance with applicable foreign law or the
incurrence of any liability (excluding claims for benefits that are funded pursuant to the terms of
such plan or scheme), to the extent that the foregoing in clauses (a), (b), (c), (d) or (e),
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

     13.1.8 Judgments. Any judgments which individually or in the aggregate exceed
$500,000 shall be rendered against any Loan Party and shall not have been paid, discharged or
vacated or had execution thereof stayed pending appeal within 30 days after entry or filing of such
judgments.

     13.1.9 Invalidity of Loan Documents, etc. Any Loan Document (or any Lien granted
thereunder), or any subordination provisions in favor of the Administrative Agent or the Lenders,
shall cease to be in full force and effect; or any Loan Party (or any Person by, through or on
behalf of any Loan Party) shall contest in any manner the validity, binding nature or
enforceability of any Loan Document (or any such Lien) or any such subordination provisions.

     13.1.10 [Intentionally Omitted]

     13.1.11 Change of Control. A Change of Control shall occur.

     13.1.12 Material Adverse Effect. The occurrence of any event having a Material
Adverse Effect.

     13.2 Effect of Event of Default. If any Event of Default described in Section
13.1.4 shall occur, the Commitments (if they have not theretofore terminated) shall immediately
terminate and the Loans and all other Obligations hereunder shall become immediately due and
payable and the Parent and other applicable Borrowers shall become immediately obligated to Cash
Collateralize all Letters of Credit then outstanding, all without presentment, demand, protest or
notice of any kind; and, if any other Event of Default shall occur and be continuing, the
Administrative Agent may (and, upon the written request of the Required Lenders shall) declare the
Commitments (if they have not theretofore terminated) to be terminated in whole or in part and/or
declare all or any part of the Loans and all other Obligations hereunder or any other Loan Document
to be due and payable and/or demand that the Parent and other applicable Borrowers immediately Cash
Collateralize all or any outstanding Letters of Credit, whereupon the Commitments shall immediately
terminate (or be reduced, as applicable) and/or the Loans and other Obligations hereunder shall
become immediately due and payable (in whole or in part, as applicable) and/or the Parent and other
applicable Borrowers shall immediately become obligated to Cash Collateralize the Letters of Credit
(all or any, as applicable), in each case as so declared and demanded, all without presentment,
demand, protest or notice of any kind. The Administrative Agent shall promptly advise the Parent
of any such declaration, or demand, but failure to do so shall not impair the effect of such
declaration or demand. Any cash collateral delivered hereunder shall be held by the Administrative
Agent (without liability for interest thereon) and applied to the Obligations (with respect to
which the Person delivering such cash collateral is liable for) arising in connection with any
drawing under a Letters of Credit then

84

 

outstanding. After the expiration or
termination of all Letters of Credit, such cash collateral shall be applied by the Administrative
Agent to any remaining Obligations (with respect to which the Person delivering such cash
collateral is liable for) hereunder and any excess shall be delivered to the Borrowers or as a
court of competent jurisdiction may elect.

     SECTION 14 THE AGENT.

     14.1 Appointment and Authorization. Each Lender hereby irrevocably (subject to Section
14.10) appoints, designates and authorizes the Administrative Agent to take such action on its
behalf under the provisions of this Agreement and each other Loan Document and to exercise such
powers and perform such duties as are expressly delegated to it by the terms of this Agreement or
any other Loan Document, together with such powers as are reasonably incidental thereto.
Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other
Loan Document, the Administrative Agent shall not have any duty or responsibility except those
expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any
fiduciary relationship with any Lender or participant, and no implied covenants, functions,
responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other
Loan Document or otherwise exist against the Administrative Agent. Without limiting the generality
of the foregoing sentence, the use of the term “agent” herein and in other Loan Documents with
reference to the Administrative Agent is not intended to connote any fiduciary or other implied (or
express) obligations arising under agency doctrine of any applicable law. Instead, such term is
used merely as a matter of market custom, and is intended to create or reflect only an
administrative relationship between independent contracting parties.

     14.2 Issuing Lender. The Issuing Lender shall act on behalf of the Lenders (according to
their Pro Rata Shares) with respect to any Letters of Credit issued by it and the documents
associated therewith. The Issuing Lender shall have all of the benefits and immunities (a)
provided to the Administrative Agent in this Section 14 with respect to any acts taken or
omissions suffered by the Issuing Lender in connection with Letters of Credit issued by it or
proposed to be issued by it and the applications and agreements for letters of credit pertaining to
such Letters of Credit as fully as if the term “Administrative Agent”, as used in this Section
14, included the Issuing Lender with respect to such acts or omissions and (b) as additionally
provided in this Agreement with respect to the Issuing Lender.

     14.3 Delegation of Duties. The Administrative Agent may execute any of its duties under
this Agreement or any other Loan Document by or through agents, employees or attorneys-in-fact and
shall be entitled to advice of counsel and other consultants or experts concerning all matters
pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or
misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or
willful misconduct in such selection.

     14.4 Exculpation of Administrative Agent. None of the Administrative Agent nor any of its
directors, officers, employees or agents shall (a) be liable for any action taken or omitted to be
taken by any of them under or in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby (except to the extent resulting from its own gross negligence or
willful misconduct in connection with its duties expressly set forth herein as

85

 

determined by a
final, nonappealable judgment by a court of competent jurisdiction), or (b) be responsible in any
manner to any Lender or participant for any recital, statement, representation or warranty made by
any Loan Party or Affiliate of any Loan Party, or any officer thereof, contained in this Agreement
or in any other Loan Document, or in any certificate, report, statement or other document referred
to or provided for in, or received by the Administrative Agent under or in connection with, this
Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document (or the creation, perfection or
priority of any Lien or security interest therein), or for any failure of any Borrower or any other
party to any Loan Document to perform its Obligations hereunder or thereunder. The Administrative
Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the
observance or performance of any of the agreements contained in, or conditions of, this Agreement
or any other Loan Document, or to inspect the properties, books or records of the Parent or any of
its Subsidiaries or Affiliates.

     14.5 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely,
and shall be fully protected in relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, electronic mail message, affidavit, letter, telegram,
facsimile, telex or telephone message, statement or other document or conversation believed by it
to be genuine and correct and to have been signed, sent or made by the proper Person or Persons,
and upon advice and statements of legal counsel (including counsel to the Parent or the other
Borrowers), independent accountants and other experts selected by the Administrative Agent. The
Administrative Agent shall be fully justified in failing or refusing to take any action under this
Agreement or any other Loan Document unless it shall first receive such advice or concurrence of
the Required Lenders as it deems appropriate and, if it so requests, confirmation from the Lenders
of their obligation to indemnify the Administrative Agent against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such action. The
Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting,
under this Agreement or any other Loan Document in accordance with a request or consent of the
Required Lenders and such request and any action taken or failure to act pursuant thereto shall be
binding upon each Lender. For purposes of determining compliance with the conditions specified in
Section 12, each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter required thereunder
to be consented to or approved by or acceptable or satisfactory to a Lender unless the
Administrative Agent shall have received written notice from such Lender prior to the proposed
Closing Date specifying its objection thereto.

     14.6
Notice of Default. The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Event of Default or Unmatured Event of Default except with respect to defaults in the payment
of principal, interest and fees required to be paid to the Administrative Agent for the account of
the Lenders, unless the Administrative Agent shall have received written notice from a Lender, the
Parent or another Borrower referring to this Agreement, describing such Event of Default or
Unmatured Event of Default and stating that such notice is a “notice of default”. The
Administrative Agent will notify the Lenders of its receipt of any such notice. The Administrative
Agent shall take such action with respect to such Event of Default or Unmatured Event of Default as
may be requested by the Required Lenders in accordance with Section 13; provided
that unless and until the Administrative Agent has

86

 

received any such request, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Event of Default or Unmatured Event of Default as it shall deem advisable or
in the best interest of the applicable Lenders.

     14.7 Credit Decision. Each Lender acknowledges that the Administrative Agent has not made
any representation or warranty to it, and that no act by the Administrative Agent hereafter taken,
including any consent and acceptance of any assignment or review of the affairs of the Loan
Parties, shall be deemed to constitute any representation or warranty by the Administrative Agent
to any Lender as to any matter, including whether the Administrative Agent has disclosed material
information in its possession. Each Lender represents to the Administrative Agent that it has,
independently and without reliance upon the Administrative Agent and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the
business, prospects, operations, property, financial and other condition and creditworthiness of
the Loan Parties, and made its own decision to enter into this Agreement and to extend credit to
the Borrowers hereunder. Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals and decisions in
taking or not taking action under this Agreement and the other Loan Documents, and to make such
investigations as it deems necessary to inform itself as to the business, prospects, operations,
property, financial and other condition and creditworthiness of the Parent and its Subsidiaries.
Except for notices, reports and other documents expressly herein required to be furnished to the
Lenders by the Administrative Agent, the Administrative Agent shall not have any duty or
responsibility to provide any Lender with any credit or other information concerning the business,
prospects, operations, property, financial or other condition or creditworthiness of the Parent or
its Subsidiaries which may come into the possession of the Administrative Agent.

     14.8 Indemnification. Whether or not the transactions contemplated hereby are consummated,
each Lender shall indemnify upon demand the Administrative Agent and its directors, officers,
employees and agents (to the extent not reimbursed by or on behalf of the Borrowers and without
limiting the obligation of the Borrowers to do so), according to its applicable Pro Rata Share,
from and against any and all Indemnified Liabilities (as hereinafter defined) and any costs,
expenses and indemnities owed to the Administrative Agent under Section 15.5 or other applicable
provisions
of the Loan Documents; provided that no Lender shall be liable for any payment to any such
Person of any portion of the Indemnified Liabilities (or such costs, expenses and indemnities) to
the extent determined by a final, nonappealable judgment by a court of competent jurisdiction to
have resulted from the applicable Person’s own gross negligence or willful misconduct. No action
taken in accordance with the directions of the Required Lenders shall be deemed to constitute gross
negligence or willful misconduct for purposes of this Section. Without limitation of the
foregoing, each Lender shall reimburse the Administrative Agent upon demand for its ratable share
of any costs or out-of-pocket expenses (including Attorney Costs and Taxes) incurred by the
Administrative Agent in connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any
other Loan Document, or any document contemplated by or referred to herein, to the extent that the
Administrative Agent is not

87

 

reimbursed for such expenses by or on behalf of the Borrowers . The
undertaking in this Section shall survive repayment of the Loans, cancellation of the Notes,
expiration or termination of the Letters of Credit, any foreclosure under, or modification, release
or discharge of, any or all of the Collateral Documents, termination of this Agreement and the
resignation or replacement of the Administrative Agent.

     14.9 Administrative Agent in Individual Capacity. LaSalle and its Affiliates may make
loans to, issue letters of credit for the account of, accept deposits from, acquire equity
interests in and generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with the Loan Parties and Affiliates as though LaSalle were not the
Administrative Agent hereunder and without notice to or consent of any Lender. Each Lender
acknowledges that, pursuant to such activities, LaSalle or its Affiliates may receive information
regarding the Parent or its Subsidiaries or other Affiliates (including information that may be
subject to confidentiality obligations in favor of the Parent, its Subsidiaries or such Affiliates)
and acknowledge that the Administrative Agent shall be under no obligation to provide such
information to them. With respect to their Loans (if any), LaSalle and its Affiliates shall have
the same rights and powers under this Agreement as any other Lender and may exercise the same as
though LaSalle were not the Administrative Agent, and the terms “Lender” and “Lenders” include
LaSalle and its Affiliates, to the extent applicable, in their individual capacities.

     14.10 Successor Administrative Agent. The Administrative Agent may resign as
Administrative Agent upon 30 days’ notice to the Lenders. If the Administrative Agent resigns
under this Agreement, the Required Lenders shall, with (so long as no Event of Default exists) the
consent of the Parent (which shall not be unreasonably withheld or delayed), appoint from among the
Lenders a successor agent for the Lenders. If no successor agent is appointed prior to the
effective date of the resignation of the Administrative Agent, the Administrative Agent may
appoint, after consulting with the Lenders, the Parent, and the other Borrowers, a successor agent
from among the Lenders. Upon the acceptance of its appointment as successor agent hereunder, such
successor agent shall succeed to all the rights, powers and duties of the retiring Administrative
Agent and the term “Administrative Agent” shall mean such successor agent, and the retiring
Administrative Agent’s
appointment, powers and duties as Administrative Agent shall be terminated. After any retiring
Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this
Section 14 and Sections 15.5 and 15.16 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement.
If no successor agent has accepted appointment as Administrative Agent by the date which is 30 days
following a retiring Administrative Agent’s notice of resignation, the retiring Administrative
Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all
of the duties of the Administrative Agent hereunder until such time, if any, as the Required
Lenders appoint a successor agent as provided for above.

     14.11 Collateral Matters. The Lenders irrevocably authorize the Administrative Agent, at
its option and in its discretion, (a) to release any Lien granted to or held by the Administrative
Agent under any Collateral Document (i) upon termination of the Commitments and payment in full of
all Loans and all other obligations of the Borrowers hereunder and the other Loan Documents and the
expiration or termination of all Letters of Credit; (ii) with respect to property sold or to be
sold or disposed of as part of or in connection with any disposition permitted

88

 

hereunder; (iii)
with respect to particular collateral under the Collateral Documents if all Obligations which such
collateral secures have been paid in full in full and all Commitments relating to such Obligations
have terminated and all Letters of Credit relating to such Obligations have expired or terminated;
or (iv) subject to Section 15.1, if approved, authorized or ratified in writing by the
Required Lenders; or (b) to subordinate its interest in any Collateral to any holder of a Lien on
such Collateral which is permitted by Section 11.2(d)(i) or (d)(iii) (it being
understood that the Administrative Agent may conclusively rely on a certificate from any Borrower
in determining whether the Debt secured by any such Lien is permitted by Section 11.1(b)).
Upon request by the Administrative Agent at any time, the Lenders will confirm in writing the
Administrative Agent’s authority to release, or subordinate its interest in, particular types or
items of Collateral pursuant to this Section 14.11. Each Lender hereby authorizes the
Administrative Agent to give blockage notices in connection with any Subordinated Debt at the
direction of Required Lenders and agrees that it will not act unilaterally to deliver such notices.

     14.12 Administrative Agent as German law security agent (Sicherheitentreuhänder). Except
as expressly provided in this Section 14.1 above, and without limiting or affecting the
Parallel Debt as defined in the Guaranty and Collateral Agreement, each Lender appoints the
Administrative Agent to act as a German law security agent (Sicherheitentreuhänder) in connection
with the German law governed Foreign Pledge Agreements and any other German law governed security
document, if any, and the Administrative Agent agrees, in its capacity as German security agent, to
hold all collateral governed by German law for the benefit of the Lenders as security for the
obligations secured by such Foreign Pledge Agreements and other German law governed security
documents. This shall not affect or limit the Parallel Debt nor the applicability of the
provisions of this Agreement with respect to any security document which is expressed to be or is
construed to be governed by any law other than the laws of the State of New York or any security
arising under any such security document. The protective provisions of Section 14 shall
benefit the Administrative Agent in its role as such German law security agent.

     14.13 Administrative Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall
have made any demand on any Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

     (a) to file and prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans, and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the claims of the Lenders
and the Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their respective agents
and counsel and all other amounts due the Lenders and the Administrative Agent under Sections
5, 15.5 and 15.17) allowed in such judicial proceedings; and

     (b) to collect and receive any monies or other property payable or deliverable on any such
claims and to distribute the same;

89

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its
agents and counsel, and any other amounts due the Administrative Agent under Sections 5,
15.5 and 15.17.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement,
adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

     14.14 Other Agents; Arrangers and Managers. None of the Lenders or other Persons
identified on the facing page or signature pages of this Agreement as a “syndication agent,”
“documentation agent,” “co-agent,” “book manager,” “lead manager,” “arranger,” “lead arranger” or
“co-arranger”, if any, shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than, in the case of such Lenders, those applicable to all Lenders as
such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall
have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges
that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in
deciding to enter into this Agreement or in taking or not taking action hereunder.

     SECTION 15 GENERAL.

     15.1 Waiver; Amendments. No delay on the part of the Administrative Agent or any Lender in
the exercise of any right, power or remedy shall operate as a waiver thereof, nor shall any single
or partial exercise by any of them of any right, power or remedy preclude other or further exercise
thereof, or the exercise of any other right, power or remedy. No amendment, modification or waiver
of, or consent with respect to, any provision of this Agreement or the other Loan Documents shall
in any event be effective unless the same shall be in writing and acknowledged by Lenders having an
aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares expressly designated
herein with respect thereto or, in the absence of such designation as to any provision of this
Agreement, by the Required Lenders, and then any such amendment, modification, waiver or consent
shall be effective only in the specific instance and for the specific purpose for which given. No
amendment, modification, waiver or consent shall (a) extend or increase the Commitment of any
Lender without the written consent of such Lender, (b) extend the date scheduled for payment of any
principal (excluding mandatory prepayments required under Section 6.2.2) of or interest on
the Loans or any fees payable hereunder without the written consent of each Lender directly
affected thereby, (c) reduce the principal amount of any Loan or any reimbursement obligation
relating to the Letters of Credit, the rate of interest on any Loan or any fees payable hereunder,
without the consent of each Lender directly affected thereby (except for periodic adjustments of
interest rates and fees resulting from a change in the Applicable Margin as provided for in this
Agreement); or (d)

90

 

release the Parent, any Borrower, or any other material Subsidiary, from its
obligations under the Guaranty and Collateral Agreement, release all or any substantial part of the
collateral granted under the Collateral Documents, change the definition of Required Lenders, any
provision of this Section 15.1 or reduce the aggregate Pro Rata Share required to effect an
amendment, modification, waiver or consent, without, in each case, the written consent of all
Lenders. No provision of Sections 6.2.2 or 6.3 with respect to the timing or
application of mandatory prepayments of the Loans shall be amended, modified or waived without the
consent of Lenders having a majority of the aggregate Pro Rata Shares of the Term Loans affected
thereby. No provision of Section 14 or other provision of this Agreement affecting the
Administrative Agent in its capacity as such shall be amended, modified or waived without the
consent of the Administrative Agent. No provision of this Agreement relating to the rights or
duties of the Issuing Lender in its capacity as such shall be amended, modified or waived without
the consent of the Issuing Lender.

     15.2 Confirmations. The Borrowers and each holder of a Note agree from time to time, upon
written request received by it from the other, to confirm to the other in writing (with a copy of
each such confirmation to the Administrative Agent) the aggregate unpaid principal amount of the
Loans then outstanding under such Note.

     15.3
Notices. Except as otherwise provided in Sections 2.2.2 and 2.2.3, all notices
hereunder shall be in writing (including facsimile transmission) and shall be sent to the
applicable party at its address shown on Annex B or at such other address as such party
may, by written notice received by the other parties, have designated as its address for such
purpose. Notices sent by facsimile transmission shall be deemed to have been given when sent;
notices sent by mail shall be deemed to have been given five Business Days after the date when sent
by registered or certified mail, postage prepaid; and notices sent by hand delivery or overnight
courier service shall be deemed to have been given when received (or when delivery is refused).
For purposes of Sections 2.2.2 and 2.2.3, the Administrative Agent shall be
entitled to rely on telephonic instructions from any person that the Administrative Agent in good
faith believes is an authorized officer or employee of any Borrower, and the Borrowers shall hold
the Administrative Agent and each other Lender harmless from any loss, cost or expense resulting
from any such reliance.

     15.4 Computations. Where the character or amount of any asset or liability or item of
income or expense is required to be determined, or any consolidation or other accounting
computation is required to be made, for the purpose of this Agreement, such determination or
calculation shall, to the extent applicable and except as otherwise specified in this Agreement, be
made in accordance with GAAP, consistently applied; provided that if the Parent or any
other Borrower notifies the Administrative Agent that the Parent wishes to amend any covenant in
Sections 10 or 11.14 (or any related definition) to eliminate or to take into
account the effect of any change in GAAP on the operation of such covenant (or if the
Administrative Agent notifies the Parent and the other Borrowers that the Required Lenders wish to
amend Sections 10 or 11.14 (or any related definition) for such purpose), then the
Borrowers’ compliance with such covenant shall be determined on the basis of GAAP in effect
immediately before the relevant change in GAAP became effective, until either such notice is
withdrawn or such covenant (or related definition) is amended in a manner satisfactory to the
Parent and the Required Lenders.

91

 

     15.5 Costs, Expenses and Taxes. The Parent as to all costs and expenses set forth below,
Newco (with respect to Newco’s share of the costs and expenses set forth below) and the German
Opcos (jointly and severally with respect to the German Opcos’ share of the costs and expenses set
forth below) each agree to pay on demand all reasonable out-of-pocket costs and expenses of the
Administrative Agent (including Attorney Costs) in connection with the preparation, execution,
syndication, delivery and administration (including perfection and protection of any Collateral) of
this Agreement, the other Loan Documents and all other documents provided for herein or delivered
or to be delivered hereunder or in connection herewith (including any amendment, supplement or
waiver to any Loan Document), whether or not the transactions contemplated hereby or thereby shall
be consummated, and all reasonable out-of-pocket costs and expenses (including Attorney Costs)
incurred by the Administrative Agent and each Lender in connection with the collection of the
Obligations or the other enforcement of this Agreement or the other Loan Documents or any such
other documents or during any workout, restructuring or negotiations in respect thereof. (Without
limiting the generality of the foregoing, the Parent agrees to pay for the costs of any
environmental studies, required by any potential lender as part of the syndication of the
Permanent Loans.). The Administrative Agent acting it is good faith discretion shall have the
right to determine what the share of Newco and the German Opcos shall be under the first sentence
of this Section 15.5 (for the avoidance of doubt, the Parent shall be liable for all costs
and expenses referred to in such first sentence and the Administrative Agent and (to the extent
applicable) the Lenders shall have the right to enforce such first sentence against the Parent
prior to enforcing it against the other Borrowers or vice-versa or may enforce against all of them
simultaneously). In addition, the Borrowers agree to pay, and to save the Administrative Agent and
the Lenders harmless from all liability for, any fees of the Parent’s auditors in connection with
any reasonable exercise by the Administrative Agent and the Lenders of their rights pursuant to
Section 10.2. All Obligations provided for in this Section 15.5 shall survive
repayment of the Loans, cancellation of the Notes, expiration or termination of the Letters of
Credit and termination of this Agreement.

     15.6 Assignments; Participations.

     15.6.1 Assignments.

     (a) Any Lender may at any time assign to one or more Persons (any such Person, an
“Assignee”) all or any portion of such Lender’s Loans and Commitments, with the prior
written consent of the Administrative Agent, the Issuing Lender (for an assignment of the Revolving
Loans and the Revolving Commitment) and, so long as no Event of Default exists, the Parent (which
consents shall not be unreasonably withheld or delayed and shall not be required for an assignment
by a Lender to a Lender or an Affiliate of a Lender). Any assignment of less than all of such
Lender’s Loans and Commitments shall be made as an assignment of a proportionate share of all of
the assigning Lender’s rights and obligations under this Agreement with respect to the Loans and
Commitments (i.e., such assignment shall be of the same percentage of all Loans and
Commitments). Except as the Administrative Agent may otherwise agree, any such assignment shall be
in a minimum aggregate amount equal to $5,000,000 or, if less, the remaining Commitments and Loans
held by the assigning Lender. Borrowers and the Administrative Agent shall be entitled to continue
to deal solely and directly with such Lender in connection with the interests so assigned to an
Assignee until the Administrative Agent shall

92

 

have received and accepted an effective assignment
agreement in substantially the form of Exhibit D hereto (an “Assignment Agreement”)
executed, delivered and fully completed by the applicable parties thereto and a processing fee of
$3,500. Any attempted assignment not made in accordance with this Section 15.6.1 shall be
treated as the sale of a participation under Section 15.6.2. The Parent shall be deemed
to have granted its consent to any assignment requiring its consent hereunder unless the Parent has
expressly objected to such assignment within three Business Days after notice thereof.

     (b) From and after the date on which the conditions described above have been met, (i) such
Assignee shall be deemed automatically to have become a party hereto and, to the extent that rights
and obligations hereunder have been assigned to such Assignee pursuant to such Assignment
Agreement, shall have the rights and obligations of a Lender hereunder and (ii) the assigning
Lender, to the extent that rights and obligations hereunder have been assigned by it pursuant to
such Assignment Agreement, shall be released from its rights (other than its indemnification
rights) and obligations hereunder. The Borrowers agree that such Assignee shall
be entitled to the benefits of Section 7.6 as if it were a Lender (provided
that on the date of such assignment or transfer such Assignee shall not be entitled to any greater
compensation pursuant to Section 7.6 than would have been paid to the assigning Lender on
such date if such assignment or transfer had not been made and that such Assignee complies with
Section 7.6(d)). Upon the request of the Assignee (and, as applicable, the assigning
Lender) pursuant to an effective Assignment Agreement within five (5) business days after the
effectiveness of such assignment, the Borrowers shall execute and deliver to the Administrative
Agent for delivery to the Assignee (and, as applicable, the assigning Lender) Notes in the
respective principal amounts of the Assignee’s Pro Rata Share of the Revolving Commitments and the
principal amount of the Assignee’s Term Loans (and, as applicable, Notes in the principal amount of
the Pro Rata Share of the Revolving Commitments retained by the assigning Lender and the principal
amount of the Term Loans retained by the assigning Lender). Each such Note shall be dated the
effective date of such assignment provided that such date shall not impair the obligations of the
Borrowers to pay any accrued interest. Upon receipt by the assigning Lender of such Note, the
assigning Lender shall return to the Parent any prior Note held by it.

     (c) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank, and this Section shall not apply to any
such pledge or assignment of a security interest; provided that no such pledge or
assignment of a security interest shall release a Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

     15.6.2 Participations. Any Lender may at any time sell to one or more Persons
participating interests in any Loan(s) owing to such Lender, any Commitment of such Lender or other
interests hereunder (any such Person, a “Participant”). In the event of a sale by a Lender
of a participating interest to a Participant, (a) such Lender’s obligations hereunder shall remain
unchanged for all purposes, (b) the Borrowers and the Administrative Agent shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations
hereunder and (c) all amounts payable by the Borrowers shall be determined as if such Lender had
not sold such participation and shall be paid directly to such Lender. No Participant shall

93

 

have
any direct or indirect voting rights hereunder except with respect to any event described in
Section 15.1 expressly requiring the unanimous vote of all Lenders or, as applicable, all
affected Lenders. Each Lender agrees to incorporate the requirements of the preceding sentence
into each participation agreement which such Lender enters into with any Participant. The
Borrowers agree that if amounts outstanding under this Agreement are due and payable (as a result
of acceleration or otherwise), each Participant shall be deemed to have the right of set-off in
respect of its participating interest in amounts owing under this Agreement and with respect to any
Letter of Credit to the same extent as if the amount of its participating interest were owing
directly to it as a Lender under this Agreement; provided that such right of set-off shall
be subject to the obligation of each Participant to share with the Lenders, and the Lenders agree
to share with each Participant, as provided in Section 7.5. The Borrowers also agree that
each Participant shall be entitled to the benefits of Section 7.6 or 8 as if it
were a Lender (provided that no Participant shall be entitled to any greater compensation
pursuant to Section 7.6 or 8 than would have been paid to the participating Lender
at such time if no participation had been sold and that each Participant complies with Section
7.6(d) as if it were an Assignee).

     15.7 Register. The Administrative Agent shall maintain a copy of each Assignment Agreement
delivered and accepted by it and register (the “Register”) for the recordation of names and
addresses of the Lenders and the Commitment of each Lender from time to time and whether such
Lender is the original Lender or the Assignee. No assignment shall be effective unless and until
the Assignment Agreement is accepted and registered in the Register. All records of transfer of a
Lender’s interest in the Register shall be conclusive, absent manifest error, as to the ownership
of the interests in the Loans. The Administrative Agent shall not incur any liability of any kind
with respect to any Lender with respect to the maintenance of the Register.

     15.8 Governing Law. THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW).

     15.9 Confidentiality. As required by federal law and the Administrative Agent’s policies
and practices, the Administrative Agent may need to obtain, verify, and record certain customer
identification information and documentation in connection with opening or maintaining accounts, or
establishing or continuing to provide services. The Administrative Agent and each Lender agree to
use commercially reasonable efforts (equivalent to the efforts the Administrative Agent or such
Lender applies to maintain the confidentiality of its own confidential information) to maintain as
confidential all information provided to them by any Loan Party and designated as confidential,
except that the Administrative Agent and each Lender may disclose such information (a) to Persons
employed or engaged by the Administrative Agent or such Lender in evaluating, approving,
structuring or administering the Loans and the Commitments; (b) to any assignee or participant or
potential assignee or participant that has agreed to comply with the covenant contained in this
Section 15.9 (and any such assignee or participant or potential assignee or participant may
disclose such information to Persons employed or engaged by them as described in clause (a) above);
(c) as required or requested by

94

 

any federal or state regulatory authority or examiner, or as
reasonably believed by the Administrative Agent or such Lender to be compelled by any court decree,
subpoena or legal or administrative order or process; (d) as, on the advice of the Administrative
Agent’s or such Lender’s counsel, is required by law; (e) in connection with the exercise of any
right or remedy under the Loan Documents or in connection with any litigation to which the
Administrative Agent or such Lender is a party; (f) to any nationally recognized rating agency that
requires access to information about a Lender’s investment portfolio in connection with ratings
issued with respect to such Lender; (g) to any Affiliate of the Administrative Agent, the Issuing
Lender or any other Lender who may provide Bank Products to the Loan Parties; or (h) that ceases to
be confidential through no fault of the Administrative Agent or any Lender. Notwithstanding the
foregoing, the Borrowers consent to the publication by the Administrative Agent or any Lender of a
tombstone or similar advertising
material relating to the financing transactions contemplated by this Agreement, and the
Administrative Agent reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements.

     15.10 Severability. Whenever possible each provision of this Agreement shall be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement. All obligations of the Loan Parties
and rights of the Administrative Agent and the Lenders expressed herein or in any other Loan
Document shall be in addition to and not in limitation of those provided by applicable law.

     15.11 Nature of Remedies. No failure to exercise and no delay in exercising, on the part
of the Administrative Agent or any Lender, any right, remedy, power or privilege hereunder, shall
operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.

     15.12 Entire Agreement. This Agreement, together with the other Loan Documents, embodies
the entire agreement and understanding among the parties hereto and supersedes all prior or
contemporaneous agreements and understandings of such Persons, verbal or written, relating to the
subject matter hereof and thereof (except as relates to the fees described in Section 5.3)
and any prior arrangements made with respect to the payment by the Parent of (or any
indemnification for) any fees, costs or expenses payable to or incurred (or to be incurred) by or
on behalf of the Administrative Agent or the Lenders.

     15.13 Counterparts. This Agreement may be executed in any number of counterparts and by
the different parties hereto on separate counterparts and each such counterpart shall be deemed to
be an original, but all such counterparts shall together constitute but one and the same Agreement.
Receipt of an executed signature page to this Agreement by facsimile or other electronic
transmission shall constitute effective delivery thereof. Electronic records of executed Loan
Documents maintained by the Lenders shall deemed to be originals.

     15.14 Successors and Assigns. This Agreement shall be binding upon the Borrowers, the
Lenders and the Administrative Agent and their respective successors and assigns, and shall

95

 

inure
to the benefit of the Borrowers, the Lenders and the Administrative Agent and the successors and
assigns of the Lenders and the Administrative Agent. No other Person shall be a direct or indirect
legal
beneficiary of, or have any direct or indirect cause of action or claim in connection with, this
Agreement or any of the other Loan Documents. The Borrowers may not assign or transfer any of
their rights or obligations under this Agreement without the prior written consent of the
Administrative Agent and each Lender.

     15.15 Captions. Section captions used in this Agreement are for convenience only and shall
not affect the construction of this Agreement.

     15.16 Customer Identification — USA Patriot Act Notice. Each Lender and LaSalle (for itself
and not on behalf of any other party) hereby notifies the Loan Parties that, pursuant to the
requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001
(the “Act”), it is required to obtain, verify and record information that identifies the Loan
Parties, which information includes the name and address of the Loan Parties and other information
that will allow such Lender or LaSalle, as applicable, to identify the Loan Parties in accordance
with the Act.

     15.17 Indemnification by the Borrowers. IN CONSIDERATION OF THE EXECUTION AND DELIVERY OF
THIS AGREEMENT BY THE ADMINISTRATIVE AGENT AND THE LENDERS AND THE AGREEMENT TO EXTEND THE
COMMITMENTS PROVIDED HEREUNDER, EACH OF THE PARENT (AS TO ALL MATTERS REFERRED TO BELOW) AND THE
OTHER BORROWERS (AS TO MATTERS REFERRED TO BELOW WHICH RELATE TO SUCH OTHER BORROWERS AND THEIR
SUBSIDIARIES) HEREBY AGREES TO INDEMNIFY, EXONERATE AND HOLD THE ADMINISTRATIVE AGENT, EACH LENDER
AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES AND AGENTS OF THE ADMINISTRATIVE AGENT
AND EACH LENDER (EACH A “LENDER PARTY”) FREE AND HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS,
CAUSES OF ACTION, SUITS, LOSSES, LIABILITIES, DAMAGES AND EXPENSES, INCLUDING ATTORNEY COSTS
(COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”), INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A
RESULT OF, OR ARISING OUT OF, OR RELATING TO (A) ANY TENDER OFFER, MERGER, PURCHASE OF CAPITAL
SECURITIES, PURCHASE OF ASSETS (INCLUDING THE RELATED TRANSACTIONS) OR OTHER SIMILAR TRANSACTION
FINANCED OR PROPOSED TO BE FINANCED IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, WITH THE PROCEEDS
OF ANY OF THE LOANS, (B) THE USE, HANDLING, RELEASE, EMISSION, DISCHARGE, TRANSPORTATION, STORAGE,
TREATMENT OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE AT ANY PROPERTY OWNED OR LEASED BY THE PARENT OR
ANY OF ITS SUBSIDIARIES, (C) ANY VIOLATION OF ANY ENVIRONMENTAL LAWS BY THE PARENT OR ANY OF ITS
SUBSIDIARIES WITH RESPECT TO CONDITIONS AT ANY PROPERTY OWNED OR LEASED BY THE PARENT OR ANY OF ITS
SUBSIDIARIES OR THE OPERATIONS CONDUCTED THEREON, (D) THE INVESTIGATION, CLEANUP OR REMEDIATION OF
HAZARDOUS SUBSTANCES AT OR RELEASED AT OFFSITE
LOCATIONS AT WHICH THE PARENT OR ANY OF ITS SUBSIDIARIES OR THEIR RESPECTIVE PREDECESSORS ARE
ALLEGED TO HAVE LIABILITY ARISING OUT OF

96

 

THE PARENT OR ANY OF ITS SUBSIDIARIES (OR SUCH
PREDECESSORS) HAVING DIRECTLY OR INDIRECTLY DISPOSED OF HAZARDOUS SUBSTANCES, OR (E) THE EXECUTION,
DELIVERY, PERFORMANCE OR ENFORCEMENT OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT BY ANY OF THE
LENDER PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED LIABILITIES ARISING ON ACCOUNT OF THE APPLICABLE
LENDER PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE
JUDGMENT BY A COURT OF COMPETENT JURISDICTION. IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING
MAY BE UNENFORCEABLE FOR ANY REASON, EACH BORROWER HEREBY AGREES TO MAKE THE MAXIMUM CONTRIBUTION
TO THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED LIABILITIES WHICH IS PERMISSIBLE UNDER
APPLICABLE LAW. ALL OBLIGATIONS PROVIDED FOR IN THIS SECTION 15.17 SHALL SURVIVE REPAYMENT
OF THE LOANS, CANCELLATION OF THE NOTES, EXPIRATION OR TERMINATION OF THE LETTERS OF CREDIT, ANY
FORECLOSURE UNDER, OR ANY MODIFICATION, RELEASE OR DISCHARGE OF, ANY OR ALL OF THE COLLATERAL
DOCUMENTS AND TERMINATION OF THIS AGREEMENT.

     15.18 Nonliability of Lenders. The relationship between the Borrowers on the one hand and
the Lenders and the Administrative Agent on the other hand shall be solely that of borrowers and
lender. Neither the Administrative Agent nor any Lender has any fiduciary relationship with or
duty to any Loan Party arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between the Loan Parties, on the one hand, and the Administrative
Agent and the Lenders, on the other hand, in connection herewith or therewith is solely that of
debtor and creditor. Neither the Administrative Agent nor any Lender undertakes any responsibility
to any Loan Party to review or inform any Loan Party of any matter in connection with any phase of
any Loan Party’s business or operations. Borrowers agree, on behalf of themselves and each other
Loan Party, that neither the Administrative Agent nor any Lender shall have liability to any Loan
Party (whether sounding in tort, contract or otherwise) for losses suffered by any Loan Party in
connection with, arising out of, or in any way related to the transactions contemplated and the
relationship established by the Loan Documents, or any act, omission or event occurring in
connection therewith, unless it is determined in a final non-appealable judgment by a court of
competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of
the party from which recovery is sought. NO LENDER PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING
FROM THE USE BY OTHERS OF ANY INFORMATION OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER
SIMILAR INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT, NOR SHALL ANY LENDER
PARTY HAVE ANY LIABILITY WITH RESPECT TO, AND THE BORROWERS ON BEHALF OF THEMSELVES AND EACH OTHER
LOAN PARTY, HEREBY WAIVE, RELEASE AND AGREE NOT TO SUE FOR ANY SPECIAL, PUNITIVE, EXEMPLARY,
INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF THE ACTIVITIES OF ANY LENDING PARTY IN CONNECTION
HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER THE CLOSING DATE). The Borrowers acknowledge that
they (and the other Loan Parties) have been advised by counsel in the negotiation, execution

97

 

and
delivery of this Agreement and the other Loan Documents. No joint venture is created hereby or by
the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby
among the Lenders or among the Loan Parties and the Lenders.

     15.19 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED HEREON, OR ARISING
OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT (EXCEPT ANY FOREIGN
PLEDGE AGREEMENT), SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE SUPREME COURT OF THE STATE OF
NEW YORK SITTING IN NEW YORK COUNTY OR THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF
NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF; PROVIDED THAT NOTHING IN THIS AGREEMENT
SHALL BE DEEMED OR OPERATE TO PRECLUDE THE ADMINISTRATIVE AGENT OR THE LENDERS FROM BRINGING SUIT
OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION. THE BORROWERS HEREBY EXPRESSLY AND
IRREVOCABLY SUBMIT TO THE JURISDICTION OF SUPREME COURT OF THE STATE OF NEW YORK SITTING IN NEW
YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK FOR THE
PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH BORROWER FURTHER IRREVOCABLY CONSENTS TO
THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, BY FEDERAL EXPRESS OR OTHER OVERNIGHT
COURIER, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK. EACH BORROWER HEREBY
EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT
REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

     15.20 Waiver of Jury Trial. EACH BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER HEREBY
WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS
UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT, DOCUMENT OR
AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR
ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES
THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

     15.21 Certain Liabilities; Oxy-Dry GmbH as a Party.

     (a) Notwithstanding anything herein to the contrary, the Parent covenants and agrees that all
Obligations with respect to all Loans, Reimbursement Obligations and any other Obligations payable
to the Administrative Agent or any of the Lenders shall constitute the obligations of the Parent
(whether as a borrower or as a guarantor, as the case may be). Notwithstanding any other provision
hereof or of any other Loan Document, the German Opcos shall have no liability for the payment of
the Bridge Loan, the Term Loans or the Initial German

98

 

Revolving Loan. Newco shall be liable as
borrower with respect to the Term Loans and the Initial German Revolving Loan and shall be liable
as a guarantor to the extent provided for in the Guaranty and Collateral Agreement.

     (b) The Borrowers other than Oxy-Dry GmbH are executing and delivering this Agreement on the
date of this Agreement and prior to the time of the consummation of the purchase by the Parent of
the Capital Securities of MTC contemplated by the Purchase Agreement. Oxy-Dry GmbH is executing
and delivering this Agreement simultaneously with the consummation of such purchase.

     15.22 Judgment Currency. If, for the purposes of obtaining judgment in any court, it is
necessary to convert a sum due hereunder or any other Loan Document in one currency into another
currency, the rate of exchange used shall be that at which in accordance with normal banking
procedures the Administrative Agent could purchase the first currency with such other currency on
the Business Day preceding that on which final judgment is given. The obligation of each Borrower
in respect of any such sum due from it to the Administrative Agent or the Lenders hereunder or
under the other Loan Documents shall, notwithstanding any judgment in a currency (the “Judgment
Currency”) other than that in which such sum is denominated in accordance with the applicable
provisions of this Credit Agreement (the “Agreement Currency”), be discharged only to the
extent that on the Business Day following receipt by the Administrative Agent of any sum adjudged
to be so due in the Judgment Currency, the Administrative Agent may in accordance with normal
banking procedures purchase the Agreement Currency with the Judgment Currency. If the amount of
the Agreement Currency so purchased is less than the sum originally due to the Administrative Agent
from any Borrower in the Agreement Currency, such Borrower agrees, as a separate obligation and
notwithstanding any such judgment, to indemnify the Administrative Agent or the Person to whom such
obligation was owing against such loss. If the amount of the Agreement Currency so purchased is
greater than the sum originally due to the Administrative Agent in such currency, the
Administrative Agent agrees to return the amount of any excess to such Borrower (or to any other
Person who may be entitled thereto under applicable law).

[signature pages follow]

99

 

     The parties hereto have caused this Agreement to be duly executed and delivered by their duly
authorized officers as of the date first set forth above.

	 	 	 	 	 
	 	 	BALDWIN TECHNOLOGY COMPANY, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Gerald A Nathe
	 

	 	 	 	 
	 

	 	Name:	 	Gerald A Nathe
	 

	 	Title:	 	Chairman and Chief Executive Officer
	 
	 	 	 	 
	 	 	MAINSEE 430. VV GMBH (TO BE RENAMED
“BALDWIN GERMANY HOLDING GMBH”)
	 
	 	 	 	 
	 

	 	By:	 	/s/ Karl S. Puehringer
	 

	 	 	 	 
	 

	 	Name:	 	Karl S. Puehringer
	 

	 	Title:	 	Managing Director
	 
	 	 	 	 
	 	 	BALDWIN GERMANY GMBH
	 
	 	 	 	 
	 

	 	By:	 	/s/ Karl S. Puehringer
	 

	 	 	 	 
	 

	 	Name:	 	Karl S. Puehringer
	 

	 	Title:	 	Managing Director
	 
	 	 	 	 
	 	 	OXY-DRY MASCHINEN GMBH
	 
	 	 	 	 
	 

	 	By:	 	/s/ Vijay C. Tharani
	 

	 	 	 	 
	 

	 	 	 	Vijay C. Tharani
	 

	 	 	 	Unauthorized Representative
	 

	 	 	 	(Vollmachtloser Vertreter)
subject

to the consent (Genehmigung) of

Oxy-Dry Maschinen GmbH’s
managing director

Signature Page to Credit

Agreement

 

 

	 	 	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION, as Administrative
Agent and as Issuing Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Lincoln Schoff
	 

	 	 	 	 
	 

	 	Name:	 	Lincoln Schoff
	 

	 	Title:	 	SVP
	 
	 	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION, as Bridge Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Lincoln Schoff
	 

	 	 	 	 
	 

	 	Name:	 	Lincoln Schoff
	 

	 	Title:	 	SVP
	 
	 	 	 	 
	 	 	LASALLE BANK NATIONAL ASSOCIATION, as Permanent
Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Lincoln Schoff
	 

	 	 	 	 
	 

	 	Name:	 	Lincoln Schoff
	 

	 	Title:	 	SVP

 

 

ANNEX A

LENDERS, COMMITMENTS AND PRO RATA SHARES

	A.	 	Bridge Loan. LaSalle Bank has the entire Bridge Loan Commitment of $35,000,000.
	 
	B.	 	Permanent Loan Commitments:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Parent Revolving	 	Pro	 	German	 	Pro	 	 	 	 	 	 
	 	 	Commitment	 	Rata	 	Revolving	 	Rata	 	Term Loan	 	Pro Rata
	Lender	 	Amount	 	Share*/	 	Commitment	 	Share*/	 	Commitment	 	Share*/
	LaSalle Bank
National
Association
	 	$	20,000,000	 	 	 	100	%	 	$	15,000,000	 	 	 	100	%	 	$	15,000,000	 	 	 	100	%
	TOTALS
	 	$	20,000,000	 	 	 	100	%	 	$	15,000,000	 	 	 	100	%	 	$	15,000,000	 	 	 	100	%

 

			
	 	 	*/ Carry out to nine decimal places.

 

 

ANNEX B

ADDRESSES FOR NOTICES

ALL BORROWERS:

c/o BALDWIN TECHNOLOGY COMPANY, INC.

2 Trap Falls Road, Suite 402

Shelton, CT 06484

Attention: Vijay C. Tharani

Telephone: 203-402-1002

Facsimile: 203-402-5500

LASALLE BANK NATIONAL ASSOCIATION, as Administrative Agent, Issuing Lender and a Lender

Notices of Borrowing , Conversion, Continuation and Letter of Credit Issuance

135 South LaSalle Street

Chicago, Illinois 60603

Attention: Maria M. Coronado

Telephone: (312) 904-7517

Facsimile: (312) 904-4448

with a copy to:

301 Merritt Seven, 5th Floor

Norwalk, CT 06581

Attention: Ursa Mooney

Telephone: (203) 899-6000

Facsimile: (203) 849-6010

All Other Notices

301 Merritt Seven, 5th Floor

Norwalk, CT 06581

Attention: Lincoln Schoff

Telephone: (203) 899-6002

Facsimile: (203) 849-6010EX-10.2

 

EXHIBIT 10.2

AMENDED AND RESTATED

STOCK PURCHASE AGREEMENT

by and among

BALDWIN TECHNOLOGY COMPANY, INC.

and

STOCKHOLDERS OF MTC TRADING COMPANY

November 17, 2006

 

 

TABLE OF CONTENTS

	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	1
	 
	 	 
	ARTICLE II SALE OF SHARES; PURCHASE PRICE
	 	12
	 
	 	 
	2.1 Sale of Shares
	 	12
	 
	 	 
	2.2 Purchase Price
	 	12
	 
	 	 
	ARTICLE III CALCULATION AND PAYMENT OF PRELIMINARY PURCHASE PRICE; ADJUSTMENT TO PRELIMINARY PURCHASE PRICE
	 	13
	 
	 	 
	3.1 Calculation and Payment of Preliminary Purchase Price
	 	13
	 
	 	 
	3.2 Calculation and Payment of Adjustment to Preliminary Purchase Price
	 	13
	 
	 	 
	3.3 Cooperation
	 	16
	 
	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SELLERS
	 	16
	 
	 	 
	4.1 Organization and Good Standing
	 	16
	 
	 	 
	4.2 Capitalization; Stock Ownership
	 	17
	 
	 	 
	4.3 Subsidiaries of MTC
	 	17
	 
	 	 
	4.4 Authority and Enforceability
	 	18
	 
	 	 
	4.5 No Conflicts; Authorizations
	 	19
	 
	 	 
	4.6 Financial Statements
	 	19
	 
	 	 
	4.7 No Undisclosed Liabilities
	 	20
	 
	 	 
	4.8 Inventory
	 	20
	 
	 	 
	4.9 Accounts Receivable
	 	21
	 
	 	 
	4.10 Taxes
	 	21
	 
	 	 
	4.11 Compliance with Law
	 	23
	 
	 	 
	4.12 Authorizations
	 	23
	 
	 	 
	4.13 Title to Personal Properties
	 	23
	 
	 	 
	4.14 Condition of Tangible Assets
	 	24
	 
	 	 
	4.15 Real Property
	 	24
	 
	 	 
	4.16 Intellectual Property
	 	24
	 
	 	 
	4.17 Absence of Certain Changes or Events
	 	26
	 
	 	 
	4.18 Contracts
	 	28
	 
	 	 
	4.19 Litigation
	 	30
	 
	 	 
	4.20 Employee Benefits
	 	30
	 
	 	 
	4.21 Labor and Employment Matters
	 	33

-i-

 

TABLE OF CONTENTS
(continued)

	 	 	 
	 	 	Page
	4.22 Environmental
	 	33
	 
	 	 
	4.23 Insurance
	 	35
	 
	 	 
	4.24 Product Warranty
	 	35
	 
	 	 
	4.25 Books and Records
	 	36
	 
	 	 
	4.26 Suppliers and Customers
	 	36
	 
	 	 
	4.27 Brokers or Finders
	 	36
	 
	 	 
	4.28 Bank Accounts
	 	36
	 
	 	 
	4.29 Powers of Attorney
	 	37
	 
	 	 
	4.30 Certain Acquisitions
	 	37
	 
	 	 
	4.31 Foreign Corrupt Practices Act
	 	37
	 
	 	 
	4.32 Completeness of Disclosure
	 	37
	 
	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE BUYER
	 	37
	 
	 	 
	5.1 Corporate Existence
	 	37
	 
	 	 
	5.2 Corporate Authority
	 	37
	 
	 	 
	5.3 Governmental Approvals; Consents
	 	38
	 
	 	 
	5.4 Finders; Brokers
	 	38
	 
	 	 
	5.5 Purchase for Investment
	 	38
	 
	 	 
	5.6 Litigation
	 	38
	 
	 	 
	5.7 Due Diligence and Independent Investigation
	 	38
	 
	 	 
	ARTICLE VI AGREEMENTS OF ALL PARTIES
	 	39
	 
	 	 
	6.1 Conduct of Business Pending Closing
	 	39
	 
	 	 
	6.2 Cooperation with Respect to Financing
	 	40
	 
	 	 
	6.3 Confidential Information
	 	41
	 
	 	 
	6.4 Buyer’s Actions
	 	41
	 
	 	 
	6.5 Other Offers
	 	41
	 
	 	 
	6.6 Mutual Cooperation; No Inconsistent Action
	 	41
	 
	 	 
	6.7 Public Disclosures
	 	42
	 
	 	 
	6.8 Access to Records and Personnel
	 	43
	 
	 	 
	6.9 Update to Disclosure
	 	43
	 
	 	 
	6.10 Resignation of Directors
	 	44
	 
	 	 
	6.11 Director and Officer Indemnification
	 	44

-ii-

 

TABLE OF CONTENTS
(continued)

	 	 	 
	 	 	Page
	6.12 Employee Relations and Benefits
	 	45
	 
	 	 
	6.13 Tax Matters
	 	46
	 
	 	 
	6.14 Non-Compete; Non-Solicit
	 	48
	 
	 	 
	6.15 Medical Insurance
	 	49
	 
	 	 
	ARTICLE VII CONDITIONS
	 	49
	 
	 	 
	7.1 Conditions to the Obligations of the Buyer
	 	49
	 
	 	 
	7.2 Conditions to the Obligations of Sellers
	 	50
	 
	 	 
	7.3 Conditions to Obligations of Buyer and Sellers
	 	50
	 
	 	 
	7.4 Frustration of Closing Conditions
	 	50
	 
	 	 
	ARTICLE VIII CLOSING
	 	50
	 
	 	 
	8.1 Closing Date
	 	50
	 
	 	 
	8.2 The Buyer’s Deliveries to Sellers
	 	50
	 
	 	 
	8.3 Sellers’ Deliveries to the Buyer
	 	51
	 
	 	 
	ARTICLE IX INDEMNIFICATION
	 	51
	 
	 	 
	9.1 Agreement to Indemnify
	 	51
	 
	 	 
	9.2 Survival of Representations and Warranties
	 	53
	 
	 	 
	9.3 Notice of Claims for Indemnification
	 	54
	 
	 	 
	9.4 Defense of Claims
	 	54
	 
	 	 
	9.5 Settlement or Compromise
	 	54
	 
	 	 
	9.6 Subrogation
	 	55
	 
	 	 
	9.7 Knowledge
	 	55
	 
	 	 
	9.8 Post-Closing Actions
	 	55
	 
	 	 
	9.9 Indemnification Calculations
	 	55
	 
	 	 
	9.10 Tax Treatment
	 	56
	 
	 	 
	9.11 Exclusive Remedy
	 	56
	 
	 	 
	ARTICLE X TERMINATION
	 	56
	 
	 	 
	10.1 Termination Events
	 	56
	 
	 	 
	10.2 Effect of Termination
	 	57
	 
	 	 
	10.3 Failure to Close
	 	57
	 
	 	 
	ARTICLE XI MISCELLANEOUS AGREEMENTS OF THE PARTIES
	 	58

-iii-

 

TABLE OF CONTENTS
(continued)

	 	 	 
	 	 	Page
	11.1 Notices
	 	58
	 
	 	 
	11.2 Expenses
	 	59
	 
	 	 
	11.3 Non-Assignability
	 	59
	 
	 	 
	11.4 Amendment; Waiver
	 	59
	 
	 	 
	11.5 Third Parties
	 	59
	 
	 	 
	11.6 Currency
	 	59
	 
	 	 
	11.7 Governing Law; Submission to Jurisdiction; Waivers
	 	59
	 
	 	 
	11.8 Specific Performance
	 	60
	 
	 	 
	11.9 Entire Agreement
	 	60
	 
	 	 
	11.10 Interpretation and Rules of Construction
	 	60
	 
	 	 
	11.11 Severability
	 	61
	 
	 	 
	11.12 Schedules
	 	61
	 
	 	 
	11.13 Language
	 	62
	 
	 	 
	11.14 Counterparts
	 	62

-iv-

 

AMENDED AND RESTATED

STOCK PURCHASE AGREEMENT

     This AMENDED AND RESTATED STOCK PURCHASE AGREEMENT, dated as of the 17th day of November,
2006, is by and between BALDWIN TECHNOLOGY COMPANY, INC. a Delaware corporation (“Buyer”), and the
stockholders listed on the signature page hereof (each, a “Seller”, and collectively, the
“Sellers”) of MTC TRADING COMPANY, an Arizona corporation (“MTC”). The Buyer and Sellers may be
referred to in this Agreement individually as a “Party” or collectively as the “Parties.”
Capitalized terms used herein shall have the meanings set forth in Article I, unless
otherwise defined herein.

     WHEREAS, Sellers own 100% of the outstanding shares (the “Shares”) of common stock of MTC as
set forth in Exhibit A.

     WHEREAS, Sellers desire to sell to Buyer, and Buyer desires to purchase from Sellers, all, but
not less than all, of the Shares.

     WHEREAS, Buyer and Sellers entered into a stock purchase agreement dated as of October 4, 2006
(the “Stock Purchase Agreement”) pursuant to which Sellers agreed to sell to Buyer, and Buyer
agreed to purchase from Seller all, but not less than all, of the Shares upon the terms and subject
to the conditions set forth in the Stock Purchase Agreement.

     WHEREAS, Buyer and Sellers desire to amend certain of the terms and conditions of and to
restate in its entirety the Stock Purchase Agreement.

     NOW, THEREFORE, in consideration of the premises and promises set forth herein, and intending
to be legally bound hereby, the Parties hereby amend and restate the Stock Purchase Agreement in
its entirety to read as follows as set forth below.

ARTICLE I

DEFINITIONS

     The following terms when used in this Agreement have the respective meanings set forth below.

     “Acquisition” has the meaning set forth in Section 2.1.

     “Acquisition Proposal” shall mean any inquiry, proposal or offer from any Person (other than
the Buyer) relating to any (a) direct or indirect acquisition (whether in a single transactions or
a series of related transactions) of MTC’s or any of its Subsidiaries’ assets equal to fifty-one
percent (51%) or more of the value of MTC’s or such Subsidiary’s assets, respectively, or to which
fifty-one percent (51%) or more of MTC’s or any of its Subsidiaries’ consolidated revenues or
earnings are attributable, (b) direct or indirect acquisition (whether in a single transactions or
a series of related transactions) of fifty-one percent (51%) or more of the equity securities of
MTC or any of its Subsidiaries, or (c) merger, consolidation, share exchange, business combination,
recapitalization, liquidation, dissolution or similar transactions involving

 

 

substantially all of MTC or any of its Subsidiaries or involving MTC’s or any of its
Subsidiaries’ assets with the value set forth in clause (a) of this definition; in each case, other
than the Acquisition.

     “Action” has the meaning set forth in Section 4.19.

     “Affected Employees” has the meaning set forth in Section 6.12.

     “Affiliate” means, with respect to any Person, any other Person that controls, is controlled
by, or is under common control with such Person. The term “control” means the possession, directly
or indirectly, of the power to direct or cause the direction of the management and policies of a
Person, by ownership of securities, contract, credit arrangement or otherwise.

     “Agreement” means this amended and restated stock purchase agreement, including all Exhibits
and Seller Disclosure Schedule, as each may be amended, modified or supplemented from time to time
in accordance with the terms of this Agreement.

     “Agents” has the meaning set forth in Section 6.11(a).

     “Ancillary Agreement” has the meaning set forth in Section 11.12.

     “Asia Pacific” means Oxy-Dry Asia Pacific, Inc., a Delaware corporation and wholly-owned
subsidiary of Oxy-Dry, and includes its branch which does business as Oxy-Dry Asia Pacific, Inc.

     “Authorization” means any authorization, approval, consent, certificate, declaration, license,
order, permit or franchise of or from, or registration or filing with, any Governmental Authority
or pursuant to any Law.

     “Benefit Plan” means any employee benefit plan (whether or not within the meaning of ERISA
Section 3(3)) or the German Company Pension Act (BetrAVG), as the case may be, whether written or
oral, maintained, sponsored, contributed to or required to be contributed to by the Sellers, MTC or
any of MTC’s Subsidiaries or ERISA Affiliates for the benefit of any present or former directors,
employees, contractors or consultants of the Sellers, MTC, or any of MTC’s Subsidiaries or ERISA
Affiliates, or for which the Sellers, MTC or any of MTC’s Subsidiaries or ERISA Affiliates may have
liability, including, but not limited to, any (a) nonqualified deferred compensation or retirement
plan or arrangement which is an Employee Pension Benefit Plan (as defined in ERISA Section 3(2)),
(b) qualified defined contribution retirement plan or arrangement which is an Employee Pension
Benefit Plan, (c) qualified defined benefit retirement plan or arrangement which is an Employee
Pension Benefit Plan, (d) any Multiemployer Plan (as defined in ERISA Section 3(37) with respect to
which MTC or any of its Subsidiaries or ERISA Affiliates has an obligation to contribute or has or
could have withdrawal liability under ERISA Section 4201), (e) Employee Welfare Benefit Plan (as
defined in ERISA Section 3(1)) or material fringe benefit plan or program, or (f) stock purchase,
stock option, severance pay, employment, change-in-control, vacation pay, company awards, salary
continuation, sick leave, excess benefit, deferred compensation, bonus or other incentive
compensation, life insurance, or other employee benefit plan, contract, program, policy or other

 - 2 - 

 

arrangement, whether or not subject to ERISA or the German Company Pension Act (BetrAVG), as
the case may be.

     “Books and Records” has the meaning set forth in Section 6.8(b).

     “Business” means the business of developing, manufacturing, distributing, marketing, selling
and servicing of automatic blanket washing systems and ancillary equipment for the graphic arts
industry as conducted by MTC and its Subsidiaries on the date hereof and the contract packaging,
toll blending and co-packing of dry ingredients, powders and pre-mixes as conducted by Food Blends
on the date hereof.

     “Business Day” means any day, excluding Saturday, Sunday and any other day on which commercial
banks in Chicago, Illinois are authorized or required by Law to close.

     “Buyer” has the meaning set forth in the introductory paragraph of this Agreement.

     “Buyer Indemnitees” has the meaning set forth in Section 9.1(a).

     “Buyer Material Adverse Effect” means a material adverse effect on the ability of the Buyer to
consummate the Acquisition and perform all of its obligations hereunder.

     “Capital Stock” means (a) in the case of a corporation, its shares of capital stock, (b) in
the case of a partnership or limited liability company, its partnership or membership interests or
units (whether general or limited), and (c) any other interest that confers on a Person the right
to receive a share of the profits and losses, or distribution of assets, of the issuing entity.

     “Cash and Cash Equivalents” means all cash and Cash Equivalents of MTC and its Subsidiaries.

     “Cash Equivalents” means (a) marketable direct obligations issued or unconditionally
guaranteed by the United States or issued by any agency thereof and backed by the full faith and
credit of the United States, in each case maturing within 1 year from the date of acquisition
thereof, (b) marketable direct obligations issued by any state of the United States or any
political subdivision of any such state or any public instrumentality thereof maturing within 1
year from the date of acquisition thereof and, at the time of acquisition, having the highest
rating obtainable from either S&P or Moody’s, (c) commercial paper maturing no more than 270 days
from the date of acquisition thereof and, at the time of acquisition, having a rating of A-1 or
P-1, or better, from S&P or Moody’s, and (d) certificates of deposit or bankers’ acceptances
maturing within 1 year from the date of acquisition thereof either (i) issued by any bank
organized under the laws of the United States or any state thereof, which bank has a rating of A or
A2, or better, from S&P or Moody’s, or (ii) certificates of deposit less than or equal to $100,000
in the aggregate issued by any other bank insured by the Federal Deposit Insurance Corporation.

     “CERCLA” means the Comprehensive Environmental Response, Compensation, and Liability Act, 42
U.S.C. Section 9601 et seq.

     “Charter Documents” means, with respect to any entity, the certificate of incorporation, the
articles of incorporation, by-laws, articles of organization, limited liability company

 - 3 - 

 

agreement, partnership agreement, trust agreement, formation agreement, joint venture
agreement or other similar organizational documents of such entity (in each case, as amended).

     “Closing” has the meaning set forth in Section 8.1.

     “Closing Date” has the meaning set forth in Section 8.1.

     “Closing Date Balance Sheet” has the meaning set forth in Section 3.2(a).

     “Closing Working Capital Value” means the Working Capital Value as of the Closing Date.

     “Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder, and any successor to such statute, rules or regulations.

     “Confidentiality Letter” means the letter agreement, dated April 25, 2006, between Oxy-Dry and
the Buyer.

     “Contract” means any written contract or other legally binding written agreement or
arrangement.

     “Copyrights” has the meaning set forth in Section 4.16.

     “Current Assets” means those current and other assets of MTC and its Subsidiaries set forth on
Schedule 1.2 hereto.

     “Current Liabilities” means those current and other liabilities of MTC and its Subsidiaries
set forth on Schedule 1.2 hereto.

     “December 31, 2005 Balance Sheet” has the meaning set forth in Section 4.6.

     “Designated Accountants” has the meaning set forth in Section 3.2(a).

     “Environment” means all indoor or outdoor air, surface water, groundwater, surface or
subsurface land, including all fish, wildlife, biota and all other natural resources.

     “Environmental Action” means any claim, proceeding or other Action brought or threatened under
any Environmental Law or otherwise asserting that MTC or a Subsidiary of MTC has incurred any
Pre-Closing Environmental Liability.

     “Environmental Clean-up Site” means any location which is listed on the National Priorities
List, the Comprehensive Environmental Response, Compensation and Liability Information System, or
on any similar state or foreign list of sites requiring investigation or cleanup, or which is the
subject of any pending or threatened Action related to or arising from any alleged violation of any
Environmental Law, or at which there has been a threatened or actual Release of a Hazardous
Substance.

     “Environmental Laws” means any and all applicable Laws and Authorizations issued, promulgated
or entered into by any Governmental Authority relating to the Environment, human

 - 4 - 

 

health, worker health and safety, public health and safety, preservation or reclamation of
natural resources, or to the management, handling, use, generation, treatment, storage,
transportation, disposal, manufacture, distribution, formulation, packaging, labeling, Release or
threatened Release of or exposure to Hazardous Substances, whether now existing or subsequently
amended or enacted, including but not limited to: CERCLA; the Federal Water Pollution Control Act,
33 U.S.C. Section 1251 et seq.; the Clean Air Act, 42 U.S.C. Section 7401 et seq.; the Toxic
Substances Control Act, 15 U.S.C. Section 2601 et seq.; the Occupational Safety and Health Act, 29
U.S.C. Section 651 et seq.; the Emergency Planning and Community Right-to-Know Act of 1986, 42
U.S.C. Section 11001 et seq.; the Safe Drinking Water Act, 42 U.S.C. Section 300(f) et seq.; the
Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et seq.; the Federal Insecticide,
Fungicide and Rodenticide Act 7 U.S.C. Section 136 et seq.; RCRA, 42 U.S.C. Section 6901 et seq.;
the Oil Pollution Act of 1990, 33 U.S.C. Section 2701 et seq.; and any similar or implementing
state or local Law, and any non-U.S. Laws and regulations of similar import, and all amendments or
regulations promulgated thereunder.

     “Environmental Permits” means any Authorization under Environmental Law, and includes any and
all Orders issued or entered into by a Governmental Authority under Environmental Law.

     “Equity Securities” means (a) shares of Capital Stock, and (b) options, warrants, purchase
rights, subscription rights, conversion rights, exchange rights or other Contracts that, directly
or indirectly, could require the issuer thereof to issue, sell or otherwise cause to become
outstanding shares of Capital Stock.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules
and regulations promulgated thereunder, and any successor to such statute, rules or regulations.

     “ERISA Affiliate” means any person (within the meaning of Section 3(9) of ERISA) who is, or at
any time was, a member of a “controlled group of corporations” with, under “common control” with or
a member of an “affiliated services group” as defined in Section 414(b), (c), (m) or (o) of the
Code, with, the Sellers, MTC or any Affiliate thereof, or any predecessor of any of the foregoing.

     “Exchange Rate” means the applicable exchange rate for converting the relevant foreign
currency into U.S. currency as published in the Wall Street Journal on the relevant date.

     “Financial Statements” has the meaning set forth in Section 4.6.

     “Foods Blends” means Oxy-Dry Food Blends, Inc., a Delaware corporation and wholly-owned
subsidiary of Oxy-Dry.

     “Funded Debt” means all debt for borrowed money of MTC and its Subsidiaries owed to any bank
or other financial institution. Funded Debt shall include any unpaid Promissory Notes or other
indebtedness of MTC or any of its Subsidiaries payable to (i) holders of shares of MTC Preferred
Stock and issued or incurred in connection with the redemption by MTC of such preferred stock,
together with all accrued and unpaid dividends thereon, and/or (ii) holders of shares of Oxy-Dry
common stock and issued or incurred in connection with the acquisition by

 - 5 - 

 

MTC of such Oxy-Dry common stock. Funded Debt shall not include (i) any amount or amounts
owed by MTC or any of its Subsidiaries as rent or additional rent with respect to the Leased
Personal Property or Leased Real Property.

     “GAAP” means United States generally accepted accounting principles applied in a manner
consistent with the application thereof in the preparation of the MTC Audited Financial Statements
at December 31, 2005.

     “General Partner” and “General Partners” have the meanings set forth in Section
4.1(b).

     “Governmental Authority” means any U.S. or foreign federal, state, provincial or local
governmental or regulatory commission, board, bureau, agency, court or regulatory or administrative
body.

     “Hazardous Substances” means all explosive materials, radioactive materials, hazardous
materials, toxic materials, wastes, chemicals, petroleum, petroleum by-products and petroleum
products (including crude oil or any fraction thereof), asbestos and asbestos containing materials,
and all other materials, chemicals and substances that are regulated by, form the basis of
liability or are defined as hazardous, extremely hazardous, toxic or words of similar import, under
any Environmental Law, including materials listed in 49 C.F.R. Section 172.101 and materials
defined as hazardous substances pursuant to Section 101(14) of CERCLA.

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976.

     “In-Bound Licenses” has the meaning set forth in Section 4.16.

     “Indemnifying Party” has the meaning set forth in Section 9.3.

     “Indemnitees” has the meaning set forth in Section 9.1(c).

     “Independent Accountants” has the meaning set forth in Section 3.2(g).

     “Intellectual Property” has the meaning set forth in Section 4.16.

     “Intellectual Property Rights” has the meaning set forth in Section 4.16.

     “July 30, 2006 Balance Sheet” has the meaning set forth in Section 4.6.

     “Knowledge”, when used in this Agreement, means that such Party has no actual knowledge, after
due inquiry, that such representation or warranty is not true and correct to the same extent as
provided in the applicable representation or warranty. For the purpose of this definition, the
“knowledge” of the Sellers shall mean the actual knowledge, after due inquiry, of Edward
McLoughlin, Mary Ellen Cahill, Martin Haver, Rune G. Vestman and Lothar Vogel and the “knowledge”
of the Buyer shall mean the actual knowledge, after due inquiry, of Gerald A. Nathe, Karl S.
Puehringer and Vijay Tharani.

 - 6 - 

 

     “Law” means any U.S. or foreign federal, state or local law, statute, ordinance, regulation,
rule, constitution, code, order or treaty of any Governmental Authority.

     “Lease” has the meaning set forth in Section 4.15.

     “Leased Personal Property” has the meaning set forth in Section 4.13.

     “Leased Real Property” has the meaning set forth in Section 4.15.

     “Liens” means all liens, charges, security interests, pledges, mortgages or other material
encumbrances (other than restrictions on transfer generally arising under the Securities Act or
other applicable securities Laws).

     “Loss” means any liability, expense (including reasonable attorney’s fees), loss, damage,
obligation or responsibility.

     “Maschinen GmbH” means Oxy-Dry Maschinen GmbH, a company with limited liability established
under the laws of the Federal Republic of Germany and wholly-owned subsidiary of Oxy-Dry.

     “Material Adverse Effect” means a material adverse effect on (a) the business, results of
operations or financial condition of MTC and its Subsidiaries taken as a whole, after taking into
effect any insurance recoveries; provided, however, that none of the following shall be deemed in
themselves, either alone or in combination, to constitute, and none of the following shall be taken
into account in determining whether there has been or will be, a Material Adverse Effect: (i) any
failure by MTC and its Subsidiaries to meet internal projections or forecasts or revenue or
earnings predictions, (ii) changes, effects, events, occurrences or circumstances that generally
affect the United States or the global economy or the industries in which MTC or its Subsidiaries
operate, (iii) general economic, financial or securities market conditions in the United States or
elsewhere, (iv) the execution, delivery or announcement of this Agreement or the announcement or
pendency of the Acquisition, (v) changes in GAAP or legal requirements applicable to MTC and its
Subsidiaries, (vi) changes in Laws or interpretations thereof by a Governmental Authority, (vii)
changes, effects or events caused by or resulting from the taking of any action required or
permitted by this Agreement or approved by Buyer, or (viii) national or international political or
social conditions, including the engagement by the United States in hostilities, whether or not
pursuant to the declaration of a national emergency or war, any outbreak or material escalation of
hostilities in which the United States is involved or the occurrence of any military or any
terrorist attack upon the United States, or any of its territories, possessions or diplomatic or
consular offices or upon any military installation, equipment or personnel of the United States or
directed against United States’ facilities or citizens wherever located; or (b) the ability of MTC
or Sellers to consummate the Acquisition.

     “Material Contracts” has the meaning set forth in Section 4.18.

     “Maximum Amount” has the meaning set forth in Section 9.1(b).

     “Minimum Amount” has the meaning set forth in Section 9.1(b).

 - 7 - 

 

     “MTC” has the meaning set forth in the introductory paragraph of this Agreement.

     “MTC Audited Financial Statements” has the meaning set forth in Section 4.6.

     “MTC Capital Stock” has the meaning set forth in Section 4.2(a).

     “MTC Financial Statements” has the meaning set forth in Section 4.6.

     “MTC Interim Financial Statements” has the meaning set forth in Section 4.6.

     “MTC Owned Intellectual Property” has the meaning set forth in Section 4.16.

     “MTC Preferred Stock” means the 3,298 shares of issued and outstanding preferred stock, $100
per value per share, of MTC.

     “Net Income Tax Liabilities” means all liabilities of MTC and its Subsidiaries as of the close
of business on the Closing Date for any known and quantified as of the date of determination
federal, state, foreign and local net income taxes, franchise taxes and taxes imposed in lieu of
net income taxes (excluding any refund of Taxes, deferred Tax assets or deferred Tax liabilities)
accrued or due and owing, determined in accordance with GAAP, not to exceed the actual Tax
liabilities as determined by the filing of all Tax Returns for all Tax periods ending on or before
the Closing Date. Any amounts which are to be included in any calculation of Net Income Tax
Liabilities which are expressed in a currency other than U.S. dollars shall be converted into U.S.
dollars at the Exchange Rate as published on the Closing Date or, if such calculation must be made
prior to the Closing Date, on the date closest in time to the Closing Date that allows for the
relevant calculation to be made in a timely manner.

     “Nondisclosure Agreements” has the meaning set forth in Section 4.16.

     “Order” means any award, injunction, judgment, decree, order, ruling, subpoena or verdict or
other decision issued, promulgated or entered by or with any Governmental Authority of competent
jurisdiction.

     “Other Antitrust Laws” means the antitrust and competition Laws of all jurisdictions other
than those of the United States.

     “Out-Bound Licenses” has the meaning set forth in Section 4.16.

     “Oxy-Dry” means Oxy-Dry Corporation, a Delaware corporation, which on the Closing Date will be
a wholly-owned subsidiary of MTC.

     “Oxy-Dry Audited Financial Statements” has the meaning set forth in Section 4.6.

     “Oxy-Dry Interim Financial Statements” has the meaning set forth in Section 4.6.

     “Party” or “Parties” has the meaning set forth in the introductory paragraph of this
Agreement.

     “Patents” has the meaning set forth in Section 4.16.

 - 8 - 

 

     “PCBs” has the meaning set forth in Section 4.22.

     “Pension Plan” has the meaning set forth in Section 4.20.

     “Permitted Liens” means all (a) Liens set forth on Schedule 1.3; (b) Liens disclosed
in the Financial Statements; (c) Liens for Taxes, assessments and other governmental charges not
yet due and payable or, if due, (i) not delinquent or (ii) being contested in good faith by
appropriate proceedings during which collection or enforcement against the property is stayed; (d)
mechanics’, workmen’s, repairmen’s, warehousemen’s, carriers’ or other like Liens arising or
incurred in the ordinary course of business; (e) Liens associated with original purchase price
conditional sales contracts and equipment leases with third parties entered into in the ordinary
course of business; and (f) with respect to any parcel of the Leased Real Property: (i) easements,
licenses, covenants, rights-of-way and other similar restrictions, including any other agreements
or restrictions which would be shown by a current title report or other similar report or listing,
(ii) any conditions that may be shown by a current survey or physical inspection of the Real
Property subject to the lease and (iii) zoning, building and other similar restrictions, so long as
none of (i), (ii) or (iii) prevent the use of such Leased Real Property subject to the lease
substantially as currently used.

     “Person” means any individual, firm, partnership, association, trust, corporation, joint
venture, unincorporated organization, limited liability company, Governmental Authority or other
entity.

     “Phantom Equity” means the gross amount due to Rune G. Vestman pursuant to his Contract of
Employment with Maschinen GmbH, dated as of May 1, 1992, as amended December 31, 1999. As of
December 31, 2005, Phantom Equity was One Million One Hundred Forty-Seven Thousand Euros
(€1,147,000) or One Million Three Hundred Fifty-Eight Thousand Dollars ($1,358,000).

     “Policies” has the meaning set forth in Section 4.23.

     “Post-Closing Period” means any taxable period or portion thereof beginning after the Closing
Date.

     “Pre-Closing Environmental Liabilities” means liabilities based upon or arising out of (a) the
ownership or operation of the businesses of MTC and its Subsidiaries at any time on or prior to the
Closing, or (b) the operations conducted on, or, to the Knowledge of the Sellers, the condition of
the Leased Real Property or any other real property currently or formerly owned, operated or leased
by MTC or any of its Subsidiaries at any time on or prior to the Closing, in each case to the
extent based upon or arising out of (i) Environmental Law, (ii) a failure to obtain, maintain or
comply with any Environmental Permit, (iii) the Release or, to the Knowledge of the Sellers, the
presence of any Hazardous Substance by MTC or any of its Subsidiaries at, on or under any Real
Property or any other real property currently or formerly owned, operated or leased by MTC or any
of its Subsidiaries at any time on or prior to the Closing or (iv) the use, generation, storage,
transportation, treatment, sale or other off-site disposal of Hazardous Substances generated by or
otherwise used in the businesses of MTC and its Subsidiaries.

 - 9 - 

 

     “Pre-Closing Period” means any taxable period or portion thereof that is not a Post-Closing
Period.

     “Preliminary Cash and Cash Equivalents” means the good faith estimate of the Cash and Cash
Equivalents of MTC as of the Closing Date as determined by Sellers, subject to the approval of the
Buyer, which approval shall not be unreasonably withheld.

     “Preliminary Funded Debt” means the good faith estimate of the Funded Debt of MTC as of the
Closing Date as determined by Sellers, subject to the approval of the Buyer, which approval shall
not be unreasonably withheld.

     “Preliminary Net Income Tax Liabilities” means the good faith estimate of the amount of all
Net Income Tax Liabilities as of the Closing Date as determined by Sellers, subject to the approval
of the Buyer, which approval shall not be unreasonably withheld.

     “Preliminary Phantom Equity” means the good faith estimate of the gross amount of Phantom
Equity of MTC and its Subsidiaries as of the Closing Date as determined by Sellers, subject to the
approval of the Buyer, which approval shall not be unreasonably withheld.

     “Preliminary Purchase Price” means that amount equal to (i) Eighteen Million Dollars
($18,000,000) plus (ii) the Preliminary Cash and Cash Equivalents less (iii) the Preliminary Funded
Debt less (iv) the Preliminary Phantom Equity and less (v) the Preliminary Net Income Tax
Liabilities, as adjusted pursuant to Section 3.1 (b).

     “Preliminary Purchase Price Statement” has the meaning set forth in Section 3.1(a).

     “Preliminary Working Capital Value” means the good faith estimate of the Working Capital Value
of MTC as of the Closing Date as determined by Sellers, subject to the approval of the Buyer, which
approval shall not be unreasonably withheld.

     “Products” has the meaning set forth in Section 4.24.

     “Proper Courts” has the meaning set forth in Section 11.7.

     “Proprietary Information” has the meaning set forth in Section 4.16.

     “Public Software” means any software that contains, or is derived in any manner (in whole or
in part) from, any software that is distributed as free software, open source software or similar
licensing or distribution models, including software licensed or distributed under any of the
following licenses or distribution models, or licenses or distribution models similar to any of the
following: (i) GNU’s General Public License or Lesser/Library GPL; (ii) Mozilla Public License;
(iii) Netscape Public License; (iv) Sun Community Source/ Industry Standard License; (v) BSD
License; and (vi) Apache License.

     “Purchase Price” has the meaning set forth in Section 2.2.

     “Purchase Price Adjustment” has the meaning set forth in Section 3.2(f).

 - 10 - 

 

     “RCRA” means the Resource Conservation and Recovery Act of 1976.

     “Reference Purchase Price Statement” means the reference statement set forth in Schedule
1.2.

     “Release” means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
injecting, escaping, leaching, dumping, or disposing of Hazardous Substances into the Environment.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder, and any successor to such statute, rules or regulations.

     “Seller” and “Sellers” have the meanings set forth in the introductory paragraph of this
Agreement.

     “Seller Disclosure Schedule” means the disclosure schedule dated and delivered as of the date
hereof by Sellers to the Buyer, as amended, modified or supplemented pursuant to Section
6.9, which is attached to this Agreement, is designated therein as being the Seller Disclosure
Schedule and is arranged in sections corresponding to each Section of Article IV.

     “Seller Indemnitees” has the meaning set forth in Section 9.1(c).

     “Seller’s Percentage of the Shares” means, with respect to any Seller, the percentage of the
Shares owned by such Seller, which is set forth on Exhibit A.

     “Shares” has the meaning set forth in the recitals to this Agreement.

     “Software” has the meaning set forth in Section 4.16.

     “Subsidiary” or “Subsidiaries” of any Person means any corporation, partnership, limited
liability company or other legal entity in which such Person (either alone or through or together
with any other Subsidiary), owns, directly or indirectly, 50% or more of the stock or other equity
or ownership interests, the holder of which is generally entitled to elect a majority of the board
of directors or other governing body of such legal entity.

     “Subsidiary Shares” has the meaning set forth in Section 4.3(b).

     “Taxes” means any federal, state, provincial, local, territorial and foreign income, profits,
franchise, gross receipts, payroll, sales, employment, use, property, real estate, excise, value
added, estimated, stamp, escheat, abandoned property, capital, transaction, license, alternative or
add-on minimum, premium, bank shares, deed, lease, service, service use, occupation, severance,
energy, unemployment, social security, workers’ compensation, ad valorem, environmental,
withholding and any other taxes, duties, assessments, customs, duties, fees, levies or other
governmental charges of any nature whatever, whether disputed or not, together with all interest,
penalties and additions to tax imposed with respect to such amounts.

 - 11 - 

 

     “Tax Returns” means all federal, state, local, provincial and foreign tax returns,
declarations, statements, reports, schedules, forms and information returns and any amended tax
return relating to Taxes (as they relate to the Business).

     “Third Party Claim” has the meaning set forth in Section 9.4.

     “Termination Date” means November 30, 2006.

     “Trademarks” has the meaning set forth in Section 4.13.

     “Transfer Taxes” means sales, use, transfer, real property transfer, recording, documentary,
stamp, registration, stock transfer and similar taxes and fees.

     “UK Inc.” means Oxy-Dry U.K., Inc., a Delaware corporation and wholly-owned subsidiary of
Oxy-Dry and includes its branch which does business as Oxy-Dry U.K., Inc..

     “Updated Schedules” has the meaning set forth in Section 6.9.

     “Working Capital Value” shall be determined in accordance with the principles employed in the
preparation of the Reference Purchase Price Statement and shall mean the consolidated Current
Assets less the consolidated Current Liabilities of MTC and its Subsidiaries, and shall exclude any
refund of Taxes or any Net Income Tax Liabilities (but shall not exclude any deferred Tax assets or
liabilities whether short or long-term) and shall exclude accrued and unpaid dividends on the MTC
Preferred Stock, if any. The Reference Purchase Price Statement contains a calculation of Working
Capital Value as of December 31, 2005. Any amounts which are to be included in any calculation of
Working Capital Value which are expressed in a currency other than U.S. dollars shall be converted
into U.S. dollars at the Exchange Rate as published on the Closing Date or, if such calculation
must be made prior to the Closing Date, on the date closest in time to the Closing Date that allows
for such calculation to be made in a timely manner, provided however that any such
calculation made for purposes of the Working Capital Value as of December 31, 2005 contained in the
Reference Purchase Price Statement shall use the Exchange Rate as published on December 31, 2005.

ARTICLE II

SALE OF SHARES; PURCHASE PRICE

     2.1 Sale of Shares. Subject to the satisfaction or waiver of the conditions set forth
in Article VII, at the Closing and as of the Closing Date, each Seller shall sell, convey,
assign and transfer to Buyer, and Buyer shall purchase, acquire and accept from each Seller
delivery of, all of such Seller’s right, title and interest in and to all of the Shares. The
purchase and sale of the Shares is referred to in this Agreement as the “Acquisition”.

     2.2 Purchase Price. The aggregate purchase price (the “Purchase Price”) for the
Shares shall be that amount equal to (i) Eighteen Million Dollars ($18,000,000) plus (ii) the
amount of all Cash and Cash Equivalents as at the Closing Date less (iii) the amount of all Funded
Debt as at the Closing Date less (iv) the amount of all Phantom Equity as at the Closing Date less
(v) the amount of all Net Income Tax Liabilities as at the Closing Date and (vi) plus

 - 12 - 

 

that amount, if any, by which the Working Capital Value as at the Closing Date is greater than
$5,588,000 or less that amount, if any, by which the Working Capital Value as at the Closing Date
is less than $5,588,000.

ARTICLE III

CALCULATION AND PAYMENT OF PRELIMINARY PURCHASE PRICE; ADJUSTMENT TO PRELIMINARY PURCHASE PRICE

     3.1 Calculation and Payment of Preliminary Purchase Price.

          (a) On the third Business Day prior to the Closing Date, the Sellers shall prepare and
deliver, or cause to be prepared and delivered, to the Buyer a preliminary purchase price statement
(the “Preliminary Purchase Price Statement”) setting forth the Preliminary Working Capital Value,
the Preliminary Cash And Cash Equivalents, the Preliminary Funded Debt, the Preliminary Phantom
Equity and the Preliminary Net Income Tax Liabilities and a calculation of the Preliminary Purchase
Price. The Preliminary Purchase Price Statement shall be prepared on a basis consistent with the
December 31, 2005 Balance Sheet and the Reference Purchase Price Statement.

          (b) If the Preliminary Working Capital Value is (i) greater than $5,588,000 (the Working
Capital Value as of December 31, 2005), then the amount of the Preliminary Purchase Price shall be
increased by the amount of the excess or (ii) less than $5,588,000 (the Working Capital Value as of
December 31, 2005), then the amount of the Preliminary Purchase Price shall be reduced by such
deficiency.

          (c) At the Closing, Buyer shall pay to each Seller in immediately available U.S. federal funds
that amount equal to the product of (i) such Seller’s Percentage of the Shares times (ii) that
amount equal to the Preliminary Purchase Price.

     3.2 Calculation and Payment of Adjustment to Preliminary Purchase Price.

          (a) Within ninety (90) days after the Closing Date, the Buyer shall prepare or cause to be
prepared and cause to be audited by PricewaterhouseCoopers LLP or such other firm of certified
independent public accountants of national reputation mutually agreed to by all of the parties (the
“Designated Accountants”) a consolidated balance sheet of MTC and its Subsidiaries as of the
Closing Date and a consolidated income statement for the period then ended (as it may be changed
below, the “Closing Date Balance Sheet”), which shall reflect all Net Income Tax Liabilities as of
the Closing Date, in accordance with GAAP applied in a manner consistent with the application of
such principles in the preparation of the December 31, 2005 Balance Sheet and in accordance with
the Reference Purchase Price Statement, except for the absence of footnote disclosures and other
financial statements required thereby. For purposes of this Agreement, the Closing Date Balance
Sheet and any determination of revenue and income for the period ending on the Closing Date, shall
use the same revenue recognition policy used by MTC and its subsidiaries as described in Note A to
the MTC Financial Statements and as more fully described in Section 3.2 of the Seller Disclosure
Schedule. Buyer shall deliver the Closing Date Balance Sheet, together with the calculation of Net
Income Tax Liabilities as of the Closing Date

 - 13 - 

 

included therein and a calculation of the Purchase Price calculated in accordance with
Section 2.2, to the Sellers within ninety (90) days after the Closing Date.

          (b) The Closing Date Balance Sheet shall reflect as accrued expenses (i) all unpaid expenses
(including, without limitation, legal and accounting fees) payable by MTC or any of its
Subsidiaries in connection with the origination, negotiation, execution and performance of this
Agreement through the Closing Date, and (ii) the severance bonus or bonuses payable to Martin Haver
and all other amounts payable to Martin Haver upon the consummation of the Acquisition pursuant to
that certain letter agreement between Oxy-Dry and Martin Haver dated May 3, 2006. The Closing Date
Balance Sheet shall not give effect to the investment banking fee or fees payable to Grant Thornton
Corporate Finance LLC by the Sellers and/or MTC in connection with the Acquisition, which fee or
fees shall be payable by Sellers.

          (c) Buyer shall cause MTC to conduct a physical count of the inventory (including, without
limitation, raw materials, finished goods and work-in-progress) of MTC and its Subsidiaries as at
the Closing Date, or such other date after the Closing as may be mutually agreed to by all of the
parties. The Designated Accountants shall observe the physical count and perform such audit
procedures as they deem necessary to enable them to audit the Closing Date Balance Sheet. The
Sellers and their representatives shall be entitled to participate in such physical count. Upon
completion of the physical count, MTC under supervision of the Buyer shall cause the inventory to
be tabulated and each item to be valued at cost in accordance with GAAP applied in a manner
consistent with the application of such principles in the preparation of the December 31, 2005
Balance Sheet. MTC under supervision of the Buyer will cause the value of such inventory and
related reserves to be rolled backward, based upon purchases and use from the Closing Date through
the date of the physical count, to value the inventory of MTC and its Subsidiaries on the Closing
Date. The Buyer shall cause to be computed labor and overhead (to include manufacturing,
engineering and field service) costs incurred in the fulfillment of orders not yet shipped
(work-in-progress and finished goods) plus any freight costs incurred to bring inventory to its
condition and location as at the Closing Date.

          (d) The fees and expenses of the Designated Accountants incurred in connection with the
preparation of the audited Closing Date Balance Sheet and the calculation of the Purchase Price and
Net Income Tax Liabilities shall be paid by MTC as a post-closing expense. In the event the
Sellers engage Grant Thornton LLP to assist in their review of the audited Closing Date Balance
Sheet and the calculation of the Purchase Price and the Net Income Tax Liabilities, the fees and
expenses of Grant Thornton LLP in connection with such review shall be paid by the Sellers.

          (e) With respect to Sellers’ review of the Closing Date Balance Sheet and the calculation of
the Net Income Tax Liabilities as provided in Section 3.2(a) hereof, the Buyer shall and
shall cause MTC and its Subsidiaries to (i) provide Sellers and their representatives with
reasonable access to all relevant books, records and work papers in the possession of employees of
the Buyer or any of its Affiliates or the Designated Accountants, (ii) cooperate with Sellers and
their representatives, including providing all information in the possession of the Buyer, MTC or
any of its Subsidiaries necessary or useful in the review of the Closing Date Balance Sheet and Net
Income Tax Liabilities, and (iii) be entitled to observe and review the preparation of the Closing
Date Balance Sheet, the Net Income Tax Liabilities and the audit,

 - 14 - 

 

including the Designated Accountants’ work papers, and shall have full access to the
Designated Accountants during such audit, which review shall not constitute any approval of or
acquiescence in the Closing Date Balance Sheet or Net Income Tax Liabilities on the part of the
Sellers.

          (f) In the event that the Sellers do not disagree with the Closing Date Balance Sheet and the
calculation by the Designated Accountants of the Purchase Price and Net Income Tax Liabilities
pursuant to Section 3.2(a), then the payment to be made pursuant to Section 3.2(h)
(the “Purchase Price Adjustment”) shall be made in cash by wire transfer of immediately available
funds on or prior to the forty-fifth (45th) day after the delivery of the Closing Date Balance
Sheet as provided in Section 3.2(a).

          (g) In the event that the Sellers disagree with the Closing Date Balance Sheet or the
calculation of the Net Income Tax Liabilities or the Purchase Price pursuant to Section 3.2(a), the
Sellers shall in writing advise the Buyer within thirty (30) days after the delivery of the Closing
Date Balance Sheet or the calculation of the Net Income Tax Liabilities or the Purchase Price, as
the case may be, specifying in reasonable detail the nature of all such disagreements, the reason
therefor and Sellers’ calculation. The Buyer and the Sellers shall attempt to resolve all such
disagreements. If the Buyer and Sellers are unable to resolve all such disagreements within
fifteen (15) days after the Sellers shall have advised the Buyer of such disagreements, the Buyer
and Sellers shall then select a mutually acceptable firm of certified independent public
accountants of national reputation (the “Independent Accountants”) to resolve the disagreements and
to determine the amount of the Purchase Price Adjustment. The Independent Accountants shall
deliver their determination of the Purchase Price Adjustment to the Buyer and Sellers as soon as
practicable and such determination shall be final and binding upon the Buyer and Sellers. Payment
of such Purchase Price Adjustment shall be made in cash by wire transfer of immediately available
funds within five (5) Business Days of the receipt of the determination of the Purchase Price
Adjustment as provided in this Section 3.2(g).

          (h) Following the Closing, in accordance with this Section 3.2, the Preliminary
Purchase Price will be adjusted as set forth below to arrive at the Purchase Price:

     (i) if the Purchase Price exceeds the Preliminary Purchase Price, the amount of
such excess will be added to the Preliminary Purchase Price and the Purchase Price
Adjustment (the amount of such excess) shall be paid by the Buyer to Sellers in cash
by wire transfer of immediately available funds as provided in this Article
III; and

     (ii) if the Purchase Price is less than the Preliminary Purchase Price, the
amount of such deficit will be subtracted from the Preliminary Purchase Price and
the Purchase Price Adjustment (the amount of such deficit) shall be paid by the
Sellers to the Buyer in cash by wire transfer of immediately available funds as
provided in this Article III.

          (i) The Sellers shall be jointly and severally responsible for the payment to the Buyer of the
amount, if any, by which the Purchase Price as determined in accordance with this Article
III is decreased from the Preliminary Purchase Price.

 - 15 - 

 

          (j) Any amounts owing under this Section 3.2 shall be paid by wire transfer to the
account or accounts specified by the payee(s). Any amount owing pursuant to this Section
3.2 which is not paid within the specified time period shall bear interest from and including
the Closing Date to, but excluding, the date of payment, at a rate per annum equal to the prime
rate as published in The Wall Street Journal, calculated daily on the basis of a year of
three hundred sixty-five days and the actual number of days elapsed.

          (k) The fees and expenses of the Independent Accountants shall be shared equally by the Buyer
and the Sellers.

     3.3 Cooperation. Following the Closing, the Buyer shall and shall cause MTC, its
Subsidiaries and their respective officers, employees, consultants, accountants and agents to
cooperate fully with Sellers and its representatives in connection with the review of the Closing
Date Balance Sheet and the calculation of the Net Income Tax Liabilities and the Purchase Price and
to provide any information requested by Sellers and its representatives in connection with any
disagreements.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF THE SELLERS

     Sellers jointly and severally represent and warrant to the Buyer as of the date hereof that
the statements contained in this Article IV are true and correct.

     4.1 Organization and Good Standing.

          (a) Each Seller that is a limited partnership is a limited partnership duly organized, validly
existing and in good standing under the Laws of the jurisdiction of its organization. Each Seller
which is a trust is a trust duly organized and validly existing under the Laws of the jurisdiction
of its organization. None of Sellers that is a limited partnership or trust is in default under
its Charter Documents. The Charter Documents of each Seller that is a limited partnership or trust
in the forms previously delivered to the Buyer are the Charter Documents of such Seller as in
effect on the date of this Agreement.

          (b) McLoughlin Management, LLC is the sole general partner of Stem, LP and Cahill Management
LLC is the sole general partner of Pine Harbour Partners, LP. McLoughlin Management, LLC and
Cahill Management LLC are each hereinafter referred to as a “General Partner” and, collectively,
the “General Partners”. Each of the General Partners is a limited liability company duly
organized, validly existing and in good standing under the Laws of the jurisdiction of its
organization. Neither General Partner is in default under its Charter Documents. The Charter
Documents of each General Partner in the forms previously delivered to the Buyer are the Charter
Documents of such General Partner as in effect on the date of this Agreement.

          (c) MTC is a corporation duly organized, validly existing and in good standing under the Laws
of the jurisdiction of its organization, has all requisite power to own, lease and operate its
properties and to carry on its business as currently conducted, and is duly qualified to do
business and is in good standing as a foreign corporation in each jurisdiction in

 - 16 - 

 

which it owns or leases property or conducts any business so as to require such qualification,
except where the failure to be so qualified would not have a Material Adverse Effect. The Seller
Disclosure Schedule contains a complete and accurate list of each jurisdiction in which MTC is
qualified to do business. MTC is not in default under its Charter Documents. The Charter
Documents of MTC in the forms previously delivered to the Buyer are the Charter Documents of MTC.

          (d) Since its incorporation, MTC has conducted no business or engaged in any other activity
other than (i) acquiring and holding as an investment shares of Capital Stock of Oxy-Dry, The Mason
and Dixon Lines Incorporated, a Tennessee corporation, and Arizona Kazakstan Development Group
Incorporated, an Arizona corporation, and (ii) rendering management services to Oxy-Dry and its
Subsidiaries for which Oxy-Dry has paid to MTC a management fee.

     4.2 Capitalization; Stock Ownership.

          (a) The authorized Capital Stock of MTC consists of (i) 1,000,000 shares of Common Stock, no
par value, of which 301,636 shares are issued, 150,818 of which are outstanding and held of record
by the Sellers and 150,818 of which are held by MTC as treasury stock and (ii) 100,000 shares of
preferred stock, par value $100 per share, of which 6,195 shares are issued, 3,298 of which are
outstanding and 2,897 of which are held by MTC as treasury stock (the “MTC Capital Stock”). All of
the MTC Capital Stock is duly authorized, validly issued, fully paid and nonassessable. All of the
Shares are owned of record and beneficially by Sellers as set forth in Exhibit A, free and clear of
all Liens. Upon transfer of the Shares to Buyer in accordance with the terms of Article
II, Buyer will receive valid title to the Shares, free and clear of all Liens.

          (b) None of the MTC Capital Stock was issued in violation of any Contract to which any Seller
or MTC is a party or is subject or in violation of any preemptive or similar rights of any Person.

          (c) Other than the MTC Capital Stock, MTC does not have outstanding any Equity Securities or
any other securities. MTC is not a party or subject to any Contract obligating MTC to issue any
Equity Securities or any other securities and there is no circumstance or condition that may give
rise to a claim by any Person that such Person is entitled to acquire any securities of MTC. MTC
does not have outstanding any bonds, debentures, notes or other obligations the holders of which
have the right to vote (or convertible into, or exercisable or exchangeable for, securities having
the right to vote) on any matter.

          (d) None of Sellers or MTC is a party or subject to any stockholder agreement, voting
agreement, voting trust or any other similar arrangement which has the effect of restricting or
limiting the transfer, voting or other rights associated with the MTC Capital Stock.

     4.3 Subsidiaries of MTC.

          (a) Each Subsidiary of MTC is validly existing and in good standing under the Laws of the
jurisdiction of its formation, has all requisite power to own, lease and operate its

 - 17 - 

 

properties and to carry on its business as currently conducted, and is duly qualified to do
business and is in good standing in each jurisdiction in which it owns or leases property or
conducts any business so as to require such qualification, except where the failure to be so
qualified would not have a Material Adverse Effect.

          (b) The Seller Disclosure Schedule contains a true and complete list of the Subsidiaries of
MTC and sets forth with respect to each such Subsidiary the jurisdiction of formation, each
jurisdiction in which such Subsidiary is qualified to transact business, the authorized and
outstanding Capital Stock of such Subsidiary and the owner of record of such outstanding Capital
Stock. Except as set forth on the Seller Disclosure Schedule, the outstanding shares of Capital
Stock of each Subsidiary (collectively, the “Subsidiary Shares”) are duly authorized, validly
issued, fully paid and nonassessable, and are owned by MTC or another Subsidiary of MTC free and
clear of all Liens.

          (c) None of the Subsidiaries of MTC is in default under its Charter Documents. The Charter
Documents of each Subsidiary of MTC in the forms previously delivered to the Buyer are the Charter
Documents of such Subsidiary of MTC.

          (d) None of the Subsidiary Shares was issued in violation of any Contract to which any Seller,
MTC or any of its Subsidiaries is a party or is subject or in violation of any preemptive or
similar rights of any person.

          (e) Other than the Subsidiary Shares, no Subsidiary of MTC has outstanding any Equity
Securities or any other securities. No Subsidiary of MTC is a party or subject to any Contract
obligating such Subsidiary to issue any Equity Securities or any other securities and there is no
circumstance or condition that may give rise to a claim by any Person that such Person is entitled
to acquire any securities of any Subsidiary of MTC. No Subsidiary of MTC has outstanding any bonds,
debentures, notes or other obligations the holders of which have the right to vote (or convertible
into, or exercisable or exchangeable for, securities having the right to vote) on any matter.

          (f) Other than the Subsidiaries set forth in the Seller Disclosure Schedule, neither MTC nor
any of its Subsidiaries directly or indirectly owns any Equity Securities or other securities in
any Person.

          (g) None of Sellers, MTC or any Subsidiary of MTC is a party or subject to any stockholder
agreement, voting agreement, voting trust or any other similar arrangement which has the effect of
restricting or limiting the transfer, voting or other rights associated with the Subsidiary Shares.

     4.4 Authority and Enforceability. Each Seller has the requisite power and authority
to enter into this Agreement and to consummate the Acquisition. The execution and delivery of this
Agreement and the consummation of the Acquisition have been duly authorized by all necessary action
on the part of each Seller which is a trust and all necessary action by each Seller which is a
limited partnership. This Agreement has been duly executed and delivered by Sellers and, assuming
due authorization, execution and delivery by the Buyer, constitutes the valid and binding
obligation of Sellers, enforceable against each of them in accordance with its terms,

 - 18 - 

 

except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization,
moratorium or other similar Laws affecting or relating to creditors’ rights generally, and (b) the
availability of injunctive relief and other equitable remedies.

     4.5 No Conflicts; Authorizations.

          (a) The execution and delivery of this Agreement by Sellers do not, and the performance by
Sellers of their obligations hereunder and the consummation by Sellers of the Acquisition (in each
case, with or without the giving of notice or lapse of time, or both) will not, directly or
indirectly, (i) violate the provisions of any of the Charter Documents of any Seller, MTC or any of
its Subsidiaries, (ii) violate or constitute a default, an event of default or an event creating
rights of acceleration, termination, cancellation, imposition of additional obligations or loss of
rights, or require a consent to assignment, under any Material Contract, (iii) violate or conflict
with any Law, Authorization or Order applicable to any Seller, MTC or any of its Subsidiaries, or
(iv) result in the creation of any Liens upon any of the assets owned or used by MTC or any of its
Subsidiaries. No consent, waiver, assignment or other approval or action is required in connection
with the Acquisition under any Material Contract in order to preserve all rights of, and benefits
to, MTC and its Subsidiaries thereunder.

          (b) No Authorization or Order of any Governmental Authority or other Person is required by or
with respect to any Seller, MTC or any of its Subsidiaries in connection with the execution and
delivery of this Agreement and the consummation of the Acquisition, including any filing or report
under the HSR Act and the Other Antitrust Laws.

     4.6 Financial Statements.

          (a) True and complete copies of the following financial statements are included in the Seller
Disclosure Schedule:

     (i) Audited consolidated financial statements of MTC consisting of the balance
sheets of MTC as at December 31 in each of the years 2004 and 2005 and the related
statements of income and retained earnings, stockholders equity and cash flow, for
the years then ended (the “MTC Audited Financial Statements”);

     (ii) Unaudited consolidated financial statements of MTC consisting of the
balance sheets as at July 31 in each of the years 2005 and 2006 and the related
statements of income and retained earnings, stockholders’ equity and cash flow for
the seven-month periods then ended (the “MTC Interim Financial Statements” and,
together with the MTC Audited Financial Statements, the “MTC Financial Statements”);

     (iii) Audited consolidated financial statements of Oxy-Dry and its
Subsidiaries, consisting of the consolidated balance sheet of Oxy-Dry and its
Subsidiaries as at December 31 in each of the years 2004 and 2005 and the related
consolidated statements of income and retained earnings, stockholders’ equity and
cash flow, for the years then ended (the “Oxy-Dry Audited Financial Statements”);
and

 - 19 - 

 

     (iv) Unaudited consolidated financial statements of Oxy-Dry and its
Subsidiaries consisting of the consolidated balance sheet of Oxy-Dry and its
Subsidiaries and a balance sheet of MTC as at July 31 in each of the years 2005 and
2006 and the related consolidated statements of income and retained earnings,
stockholders’ equity and cash flow for the seven-month periods then ended (the
“Oxy-Dry Interim Financial Statements” and together with the Oxy-Dry Audited
Financial Statements and the MTC Financial Statements, the “Financial Statements”).

          (b) The Financial Statements have been prepared in accordance with GAAP applied on a
consistent basis throughout the periods involved, subject, in the case of the Oxy-Dry Interim
Financial Statements, to normal and recurring year-end adjustments (the effect of which will not be
materially adverse) and the absence of notes (that, if presented, would not differ materially from
those presented in the Oxy-Dry Audited Financial Statements).

          (c) The Financial Statements are based on the books and records of MTC and its Subsidiaries,
and fairly present in all material respects the financial condition of MTC and its Subsidiaries as
of the respective dates they were prepared and the results of the operations of MTC and its
Subsidiaries for the periods indicated.

          (d) The consolidated balance sheet of Oxy-Dry and its Subsidiaries as of December 31, 2005 is
referred to herein as the “December 31, 2005 Balance Sheet” and the consolidated balance sheet of
Oxy-Dry and its Subsidiaries as of July 31, 2006 is referred to herein as the “July 31, 2006
Balance Sheet”. Each of MTC and its Subsidiaries maintains a standard system of accounting
established and administered, in all material respects, in accordance with GAAP and neither MTC nor
any of its Subsidiaries has made any change in accounting practices since December 31, 2005.

     4.7 No Undisclosed Liabilities. (a) Oxy-Dry and its Subsidiaries have no debts,
liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted, known or
unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise, except
(i) those which are adequately reflected or reserved against in the July 31, 2006 Balance Sheet,
(ii) those which have been incurred in the ordinary course of business and consistent with past
practice since July 31, 2006 and which are not, individually or in the aggregate, material in
amount, and (iii) those set forth in the Seller Disclosure Schedule.

          (b) Except as set forth on the Seller Disclosure Schedule, MTC has no debts, liabilities,
obligations or commitments of any nature whatsoever, asserted or unasserted, known or unknown,
absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise.

     4.8 Inventory. The Sellers have previously delivered to Buyer a true and complete
list of all inventory of MTC and each of its Subsidiaries as of December 31, 2005, and a list of
all items of inventory that the inventory accounting records of MTC and its Subsidiaries indicate
had no movement (in or out) during the twelve month period preceding each of December 31, 2005 and
August 31, 2006 (except for Oxy-Dry UK Inc., for whom such list is provided as of August 31, 2006
only). The Sellers have previously delivered to Buyer a true and complete list of all inventory
items that the accounting records of MTC and its Subsidiaries indicate were

 - 20 - 

 

purchased during the period January 1, 2006 through August 31, 2006 by Oxy-Dry Mashinen GmbH
and Food Blends.

     4.9 Accounts Receivable. The Seller Disclosure Schedule sets forth a true and
complete list of all accounts receivable of MTC and each of its Subsidiaries as of July 31, 2006
indicating with respect to each account receivable the account debtor, the amount of such account
receivable, the date on which such account receivable was recorded, the date on which such account
receivable is due and, if the estimated payment date is different, such date. Such list also
details all balances that are greater than $10,000 and 60 days or older, noting for each such
balance a reason for the payment delay and identifying those accounts receivable balances the
payment of which are subject to acceptance of related equipment by the customer.

     4.10 Taxes.

          (a) Except as set forth in the Seller Disclosure Schedule, all Tax Returns required to have
been filed by or with respect to MTC and its Subsidiaries have been duly and timely filed (or, if
due between the date hereof and the Closing Date, will be duly and timely filed), and each such Tax
Return correctly and completely reflects liability for Taxes and all other information required to
be reported thereon in all material respects. The time periods to file Tax Returns for the year
ended December 31, 2005 for MTC and its Subsidiaries have been extended as permitted by applicable
taxing authorities. All Taxes owed by MTC or any of its Subsidiaries (whether or not shown on any
Tax Return) have been timely paid (or, if due between the date hereof and the Closing Date, will be
duly and timely paid).

          (b) Except as set forth in the Seller Disclosure Schedule, there is no audit currently
proposed, threatened or pending against, or with respect to, MTC or any of its Subsidiaries in
respect of any Taxes. No claim has ever been made by an authority in a jurisdiction where MTC or
any of its Subsidiaries do not file Tax Returns that any of them is or may be subject to taxation
by that jurisdiction or that any of them must file Tax Returns in that jurisdiction.

          (c) Except as set forth in the Seller Disclosure Schedule, MTC and its Subsidiaries have
withheld and timely paid all Taxes required to have been withheld and paid and have complied with
all information reporting and backup withholding requirements, including maintenance of required
records with respect thereto.

          (d) There is no dispute or claim concerning any liability for Taxes with respect to MTC or any
of its Subsidiaries for which notice has been provided, or which, to the Knowledge of Sellers, is
asserted or threatened. The Seller Disclosure Schedule (i) lists all federal, state, local, and
foreign income Tax Returns filed with respect to MTC or any of its Subsidiaries for taxable periods
ended on or after December 31, 2003, and (ii) indicates those Tax Returns that have been audited.
Sellers have made available to Buyer correct and complete copies of all federal income Tax Returns,
examination reports, and statements of deficiencies assessed against or agreed to by any of MTC or
its Subsidiaries since December 31, 2003. Neither MTC nor any Subsidiary has waived (or is subject
to a waiver of) any statute of limitations in respect of Taxes or has agreed to (or is subject to)
any extension of time with respect to a Tax assessment or deficiency.

 - 21 - 

 

          (e) Neither MTC nor any of its Subsidiaries has filed a consent pursuant to the collapsible
corporation provisions of Section 341(f) of the Code (or any corresponding provisions of state,
local or foreign income Tax Law). None of the assets or properties of MTC constitutes tax-exempt
bond financed property or tax-exempt use property within the meaning of Section 168 of the Code.
Neither MTC nor any of its Subsidiaries is a party to any “safe harbor lease” within the meaning of
Section 168(f)(8) of the Code, as in effect prior to amendment by the Tax Equity and Fiscal
Responsibility Act of 1982, or to any “long-term contract” within the meaning of Section 460 of the
Code. Neither MTC nor any of its Subsidiaries has ever been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Code. No foreign Subsidiary of MTC has
ever held a “United States real property interest” within the meaning of Section 897(1)(1) of the
Code. No Seller is a “foreign person” within the meaning of Section 1445 of the Code. Neither MTC
nor any of its Subsidiaries has made any payments, is not obligated to make any payments, nor is a
party to any agreement that under certain circumstances could obligate it to make payments that
would result in a nondeductible expense under Section 280G of the Code or an excise Tax to the
recipient of such payments pursuant to Section 4999 of the Code. To the Knowledge of Sellers,
neither MTC nor any of its Subsidiaries has participated in or cooperated with an international
boycott as defined in Section 999 of the Code.

          (f) Neither MTC nor any Subsidiary has agreed to or is required to make by reason of a change
in accounting method or otherwise, any adjustment under Section 481(a) of the Code. Neither MTC
nor any Subsidiary has been the “distributing corporation” (within the meaning of Section 355(c)(2)
of the Code) with respect to a transaction described in Section 355 of the Code within the
five-year period ending as of the date of this Agreement.

          (g) Neither MTC nor any of its Subsidiaries is a party to any Tax allocation or sharing
agreement. Neither MTC nor any of its Subsidiaries has any liability for the Taxes of any Person
(i) as a transferee or successor, (ii) by contract, or (iii) under Section 1.1502-6 of the Treasury
regulations (or any similar provision of state, local or foreign Law) except in respect of the
several liability of MTC and each of its Subsidiaries, other than Maschinen GmbH and Oxy-Dry U.K.
Ltd., for U.S. federal income taxes of such entities.

          (h) No Subsidiary of MTC that is incorporated in a non-U.S. jurisdiction has an investment in
“United States property” within the meaning of Section 956(c) of the Code. No Subsidiary of MTC is
a passive foreign investment company within the meaning of Section 1297 of the Code and neither MTC
nor any of its Subsidiaries is a shareholder, directly or indirectly, in a passive foreign
investment company. No Subsidiary of MTC that is incorporated in a non-U.S. jurisdiction is, or at
any time has been, engaged in the conduct of a trade or business within the United States, or
treated as or considered to be so engaged.

          (i) Except as set forth in the Seller Disclosure Schedule, neither MTC nor any of its
Subsidiaries is or at any time has been subject to (i) the dual consolidated loss provisions of
Section 1503(d) of the Code, (ii) the overall foreign loss provisions of Section 904(f) of the Code
or (iii) the recharacterization provisions of Section 952(c)(2) of the Code. Neither MTC nor any of
its Subsidiaries has any “non-recaptured net Section 1231 losses” within the meaning of Section
1231(c)(2) of the Code.

 - 22 - 

 

     4.11 Compliance with Law. Each of MTC and its Subsidiaries has complied in all
material respects with each, and is not in violation of any, applicable Law to which MTC or any
such Subsidiary or its respective business, operations, assets or properties is subject, including,
without limitation, any applicable Law relating to the issuance of the Shares or the Subsidiary
Shares, any applicable Law relating to minimum insurance requirements and any applicable Law
relating to the processing, blending or packaging of foodstuffs. Neither MTC nor any of its
Subsidiaries has received written notice asserting a violation of, conflict with, or failure to
comply with, any Law, including, without limitation, any work safety regulation issued by the
German employers’ liability insurance association (Berufsgenossenschaft)..

     4.12 Authorizations.

          (a) Each of MTC and its Subsidiaries owns, holds or lawfully uses in the operation of its
business all Authorizations which are required or necessary for it to conduct its business as
currently conducted or for the ownership and use of the assets owned or used by MTC or any
Subsidiary in the conduct of its business free and clear of all Liens. Such Authorizations are
valid and in full force and effect and none of such Authorizations will be terminated, revoked,
withdrawn, cancelled, suspended or modified or become terminable, revocable, withdrawable,
suspendable or modifiable as a result of the Acquisition.

          (b) To the Knowledge of Sellers, no event has occurred and no circumstances exist that would
reasonably be expected to result in a violation of, conflict with, failure to comply with the terms
of, or the revocation, withdrawal, termination, cancellation, suspension or modification of any
Authorization which is necessary for it to conduct the Business. Neither MTC nor any of its
Subsidiaries has received written notice asserting a violation of, conflict with, failure to comply
with the terms of, or any revocation, withdrawal, termination, cancellation, suspension or
modification of, or any claim of default with respect to, any Authorization which is necessary for
it to conduct its business.

          (c) Each of MTC and its Subsidiaries has made all filings with each Governmental Authority
which are required or necessary to be filed by it in connection with the consummation of the
Acquisition and the other transactions contemplated by this Agreement.

     4.13 Title to Personal Properties.

          (a) The Seller Disclosure Schedule sets forth a complete and accurate list of all the personal
properties and assets owned, leased or used by MTC or any of its Subsidiaries as of June 30, 2006,
with a current fair market value in excess of $50,000.

          (b) MTC or one of its Subsidiaries has good and valid title to, and is the lawful owner of,
all of the tangible assets listed in the Seller Disclosure Schedule, free and clear of all Liens
other than Permitted Liens, and no Person other than MTC, its Subsidiaries or holders of Permitted
Liens has any interest in such tangible assets. With respect to personal properties and assets
that are leased (“Leased Personal Property”), MTC or one of its Subsidiaries has a valid leasehold
interest in such Leased Personal Property, all such leases are in full force and effect and
constitute valid and binding obligations of the other party(ies) thereto and no Person other than
MTC, its Subsidiaries or the lessors of Leased Personal Property has

 - 23 - 

 

any interest in such Leased Personal Property. None of MTC, any of its Subsidiaries or any
other party thereto is in breach of any of the terms of any such lease.

     4.14 Condition of Tangible Assets. All buildings, plants, leasehold improvements,
structures, facilities, equipment and other items of tangible property and assets which are owned,
leased or used by MTC or any of its Subsidiaries are in good operating condition and repair
(subject to normal wear and tear given the use and age of such assets), are usable in the ordinary
course of business and conform in all material respects to all Laws and Authorizations relating to
their use and operation.

     4.15 Real Property. Neither MTC nor any Subsidiary owns any real property.
Schedule 4.15 of the Seller Disclosure Schedule lists all of the material real property and
interests therein leased or subleased by MTC and its Subsidiaries (the “Leased Real Property”).
The Leased Real Property listed on the Seller Disclosure Schedule includes all interests in real
property used in or necessary for the conduct of the business and operations of MTC and its
Subsidiaries as currently conducted. Sellers have delivered to Buyer a true and complete copy of
every lease and sublease pursuant to which MTC or its Subsidiary, as the case may be, holds a
possessory interest in the Leased Real Property and all material amendments, renewals, or
extensions thereto (each, a “Lease”). The leasehold interest of MTC or its Subsidiary, as the case
may be, with respect to each item of Leased Real Property is held free and clear of any Liens,
except Permitted Liens. Neither MTC nor any of its Subsidiaries has received or given an uncured
default notice in respect of the performance, observance or fulfillment of any obligation, covenant
or condition contained in any Lease. There are no defaults by MTC or any of its Subsidiaries under
any Lease and, to the Knowledge of Sellers, there are no defaults by a landlord under any Lease.
The Leased Real Property is in suitable condition for MTC’s and each Subsidiary’s business as
currently conducted.

     4.16 Intellectual Property.

          (a) As used in this Agreement, “Intellectual Property” means: (i) inventions (whether or not
patentable), trade secrets, technical data, databases, designs, tools, specifications, mask works,
drawings, graphics, methods, processes, technology, know-how, source code, product road maps and
other proprietary information and materials used in the assembly of Products (collectively
“Proprietary Information”); (ii) trademarks and service marks (whether or not registered), trade
names, logos, domain names, trade dress and other proprietary indicia and all goodwill associated
therewith (collectively, “Trademarks”); (iii) all registered and unregistered copyrights in both
published and unpublished works (collectively, “Copyrights”); (iv) all letters patent, patent
applications, provisional patents, design patents, PCT filings (collectively, “Patents”); (v)
computer programs, including any and all software implementations of algorithms, models and
methodologies, whether in source code or object code, design documents, flow-charts, user manuals
and training materials relating thereto and any translations thereof (collectively, “Software”);
and (vi) all forms of legal rights and protections that may be obtained for, or may pertain to, the
Intellectual Property set forth in clauses (i) through (v) in any country of the world
(“Intellectual Property Rights”).

          (b) The Seller Disclosure Schedule lists (by name, owner and, where applicable, registration
number and jurisdiction of registration, application, certification or filing)

 - 24 - 

 

all Patents, Copyrights and Trademarks owned by MTC and/or one or more of its Subsidiaries
(whether exclusively, jointly with another Person or otherwise) (“MTC Owned Intellectual
Property”); provided that the Seller Disclosure Schedule is not required to list items of MTC Owned
Intellectual Property which are not registered or the subject of an application for registration.
Except as described in the Seller Disclosure Schedule, MTC or one of its Subsidiaries owns the
entire right, title and interest to all MTC Owned Intellectual Property free and clear of all Liens
and free of any obligation to make any payment to any employee or former employee in the context of
employee inventions, including, without limitation, inventions under the German Employee Invention
Act (Arbeitnehmererfindergesetz).. To the Knowledge of Sellers, the MTC Owned Intellectual
Property and any Intellectual Property that MTC rightfully uses or otherwise enjoys pursuant to the
terms of a valid and enforceable In-Bound License constitute all of the Intellectual Property
Rights required or necessary for the operation of the Business as it is currently conducted.

          (c) The Seller Disclosure Schedule lists all licenses, sublicenses and other agreements
(“In-Bound Licenses”) pursuant to which a third party authorizes MTC or any of its Subsidiaries to
use, practice any rights under, or grant sublicenses with respect to, any Intellectual Property
owned by such third party, including the incorporation of any such Intellectual Property into MTC’s
or any of its Subsidiaries’ Products. Each In-Bound License is non-exclusive. Except as described
in the Seller Disclosure Schedule, neither MTC nor any of its Subsidiaries is in default under any
In-Bound License.

          (d) The Seller Disclosure Schedule lists all licenses, sublicenses and other agreements
(“Out-Bound Licenses”) pursuant to which MTC or any of its Subsidiaries authorizes a third party to
use, practice any rights under, or grant sublicenses with respect to, any MTC Owned Intellectual
Property or pursuant to which MTC or any of its Subsidiaries grants rights to use or practice any
rights under any Intellectual Property owned by a third party and, with respect to each Out-Bound
License, whether the Out-Bound License is exclusive or non-exclusive. To the Knowledge of the
Sellers, no third party is in default of any Out-Bound License.

          (e) All registration, maintenance and renewal fees related to MTC Owned Intellectual Property
that are currently due have been paid and all documents and certificates related to such MTC Owned
Intellectual Property have been filed with the relevant Governmental Authority or other authorities
in the United States or foreign jurisdictions, as the case may be, for the purposes of maintaining
such MTC Owned Intellectual Property.

          (f) Sellers are not aware of any challenges (or any basis therefor) with respect to the
validity or enforceability of any MTC Owned Intellectual Property. The Seller Disclosure Schedule
lists the status of any Actions before the United States Patent and Trademark Office or any other
Governmental Authority anywhere in the world related to any of MTC Owned Intellectual Property,
including the due date for any outstanding response by MTC or any of its Subsidiaries in such
Actions.

          (g) None of the Products currently assembled, sold, distributed, provided, shipped or
licensed, by MTC or any of its Subsidiaries infringes upon, or otherwise unlawfully uses, the
Intellectual Property Rights of any third party. Neither MTC nor any of its

 - 25 - 

 

Subsidiaries, by conducting its business as currently conducted, infringes upon, or otherwise
unlawfully uses, any Intellectual Property Rights of a third party. None of Sellers, MTC or any of
its Subsidiaries has received any written communication alleging that MTC or any of its
Subsidiaries or any of their respective Products infringe upon or otherwise unlawfully use any
Intellectual Property Rights of a third party nor, to the Knowledge of Sellers, is there any basis
therefor. No Action has been instituted, or, to the Knowledge of Sellers, threatened, relating to
any Intellectual Property currently used by MTC or any of its Subsidiaries. To the Knowledge of
Sellers, no Person is infringing any Intellectual Property Rights of MTC or any of its Subsidiaries
or has otherwise misappropriated or is otherwise misappropriating any MTC Owned Intellectual
Property.

          (h) To the Knowledge of Sellers, no Public Software: (A) forms part of any Software owned by
MTC; (B) was, or is, used in connection with the development of any Software owned by MTC or any
products or services developed or provided through the Business; or (C) was, or is, incorporated or
distributed, in whole or in part, in conjunction with any Software owned by MTC; that would
adversely affect, limit, or restrict MTC’s ownership of, or ability to license, transfer or sell,
any Software owned by MTC.

          (i) MTC and its Subsidiaries have taken commercially reasonable steps to protect and preserve
the confidentiality of all Proprietary Information owned by MTC or any of its Subsidiaries that is
not covered by an issued Patent. All employees of Oxy-Dry in the United States sign a form written
confidentiality and trade secret agreement (the “Nondisclosure Agreement”). A copy of the standard
form of Nondisclosure Agreement has been provided to the Buyer. To the Knowledge of the Sellers,
no employee has breached the provisions of his or her Nondisclosure Agreement.

     4.17 Absence of Certain Changes or Events. Except as set forth on the Seller
Disclosure Schedule, since December 31, 2005 to the date of this Agreement (with respect to the
representation and warranty made as of the date of this Agreement) and to the Closing Date (with
respect to the representation and warranty made as of the Closing Date):

          (a) there has not been any material adverse change in the condition (financial or otherwise),
operations, or results of operations of MTC and its Subsidiaries taken as a whole;

          (b) neither MTC nor any of its Subsidiaries has amended or changed its Charter Documents;

          (c) neither MTC nor any of its Subsidiaries has declared, set aside or paid any dividend or
other distribution (whether in cash, stock or property) with respect to any Equity Security or any
other security;

          (d) neither MTC nor any of its Subsidiaries has split, combined or reclassified any Equity
Security or other security, or issued, or authorized for issuance, any Equity Security or other
security;

          (e) neither MTC nor any of its Subsidiaries has altered any term of any outstanding Equity
Security or other security;

 - 26 - 

 

          (f) neither MTC nor any of its Subsidiaries has (i) increased or modified the compensation or
benefits payable or to become payable by MTC or any of its Subsidiaries to any of its current or
former directors, employees, contractors or consultants, (ii) increased or modified any bonus,
severance, termination, pension, insurance or other employee benefit plan, payment or arrangement
made to, for or with any current or former directors, employees, contractors or consultants of MTC
or any of its Subsidiaries, or (iii) entered into any employment, severance or termination
agreement;

          (g) other than the sale of inventory in the ordinary course of business neither MTC nor any of
its Subsidiaries has sold, leased, transferred or assigned any property or assets of MTC or any
such Subsidiary having an aggregate value of more than $10,000;

          (h) neither MTC nor any of its Subsidiaries has incurred, assumed or guaranteed any
indebtedness;

          (i) neither MTC nor any of its Subsidiaries has created or assumed any Lien on any asset,
except for Liens arising under lease financing arrangements incurred in the ordinary course and
Liens for Taxes not yet due and payable with respect to which MTC and its Subsidiaries maintain
adequate reserves;

          (j) (i) no Material Contract has been modified, (ii) no rights under any Material Contract
have been waived or accelerated and (iii) no Contract that would be required to be listed as a
Material Contract pursuant to Section 4.18 hereof if such Contract were in effect on the
date hereof has been terminated or cancelled;

          (k) neither MTC nor any of its Subsidiaries has sold, transferred, pledged or assigned, and
there has been no material reduction in the value of, any MTC Owned Intellectual Property;

          (l) none of Sellers, MTC or its Subsidiaries has agreed or entered into any arrangement to
take any action which, if taken prior to the date hereof, would have made any representation or
warranty set forth in this Article IV untrue or incorrect;

          (m) there has not been any material damage, destruction or loss with respect to the property
and assets of MTC or any of its Subsidiaries, whether or not covered by insurance;

          (n) none of Sellers, MTC or any of its Subsidiaries has made any Tax election;

          (o) none of Sellers, MTC or any of its Subsidiaries has agreed, whether in writing or
otherwise, to do any of the foregoing; and

          (p) none of MTC or any of its Subsidiaries has made any change in their accounting or Tax
methods or practices or their Tax elections, or settled or compromised any income Tax liability of
MTC or any of its Subsidiaries.

 - 27 - 

 

     4.18 Contracts.

          (a) The Seller Disclosure Schedule contains a true and complete list of each Contract to which
MTC or any of its Subsidiaries is a party or is subject, or by which any of their respective assets
are bound meeting any of the descriptions set forth below:

     (i) for the purchase of materials, supplies, goods, services, equipment or
other assets involving aggregate payments by MTC or any of its Subsidiaries of
$100,000 or more;

     (ii) for the sale by MTC or any of its Subsidiaries of any Product or Products
having an aggregate purchase price of more than $50,000 in the year ending 2006;

     (iii) that requires MTC or any of its Subsidiaries to purchase its total
requirements of any product or service from a third party or that contains “take or
pay” provisions;

     (iv) that (A) continues over a period of more than twelve months or (B)
involves payments to or by MTC or any of its Subsidiaries exceeding $50,000, other
than arrangements disclosed pursuant to the preceding subsections (i) and (ii);

     (v) that is an employment, termination or severance Contract, other than any
such Contract that is terminable at-will by MTC or any of its Subsidiaries without
liability to MTC or such Subsidiary;

     (vi) that is a partnership or joint venture or other Contract involving stock
appreciation, phantom stock or the sharing of profits;

     (vii) that is with any Seller, that is between MTC and any of its Subsidiaries
or that is between any of the Subsidiaries of MTC;

     (viii) that is a distribution, dealer, representative or sales agency Contract;

     (ix) that is a Contract for the lease of personal property which provides for
payments to or by MTC or any of its Subsidiaries in any one case of $100,000;

     (x) that provides for the indemnification by MTC or any of its Subsidiaries of
any Person, the undertaking by MTC or any of its Subsidiaries to be responsible for
consequential damages, or the assumption by MTC or any of its Subsidiaries of any
Tax, environmental or other Liability;

     (xi) with any Governmental Authority;

     (xii) that is a note, debenture, bond, equipment trust, letter of credit, loan
or other Contract for Indebtedness or lending of money or advance or capital

 - 28 - 

 

contribution, or investment in, any Person (other than to employees for travel
expenses in the ordinary course of business) or Contract for a line of credit or
guarantee, pledge or undertaking of the Indebtedness of any other Person;

     (xiii) for a charitable or political contribution in any one case in excess of
$1,000 or in the aggregate greater than $10,000;

     (xiv) for any capital expenditure or leasehold improvement in any one case in
excess of $25,000 or in the aggregate greater than $50,000;

     (xv) that restricts the right of MTC or any of its Subsidiaries to engage in
any line of business, acquire any property, develop or distribute any product or
provide any service (including geographic restrictions) or to compete with any
Person or granting any exclusive distribution rights, in any market, field or
territory;

     (xvi) that is an Out-Bound License (other than a license incorporated in a
Contract for the purchase of a Product) or an In-Bound License (other than the
manufacturer’s standard form of license accompanying off-the-shelf software
purchased by MTC or any of its Subsidiaries);

     (xvii) that relates to the acquisition or disposition of any material business
(whether by merger, sale of stock, sale of assets or otherwise);

     (xviii) that is a collective bargaining Contract or other Contract with any
labor organization, union or association.

          (b) Each Contract required to be listed in the Seller Disclosure Schedule (collectively, the
“Material Contracts”) is in full force and effect and valid and enforceable in accordance with its
terms.

          (c) Neither MTC nor any of its Subsidiaries is, and to the Knowledge of Sellers, no other
party thereto is, in default in the performance, observance or fulfillment of any obligation,
covenant, condition or other term contained in any Material Contract, including any default with
respect to minimum insurance requirements, and neither MTC nor any of its Subsidiaries has given or
received written notice to or from any Person relating to any such alleged or potential default
that has not been cured. No event has occurred which with or without the giving of notice or lapse
of time, or both, may conflict with or result in a violation or breach of, or give any Person the
right to exercise any remedy under or accelerate the maturity or performance of, or cancel,
terminate or modify, any Material Contract.

          (d) Sellers have delivered accurate and complete copies of each Material Contract, including
all amendments thereto, to Buyer.

          (e) Neither MTC nor any of its Subsidiaries is a party to any enforceable oral agreement (i)
entered into outside the ordinary course of business, (ii) involving aggregate payments of $10,000
or more, or (iii) that can not be fully performed in less than twelve (12) months.

 - 29 - 

 

     4.19 Litigation.

          (a) Except as set forth on the Seller Disclosure Schedule there is no action, suit or
proceeding, claim, arbitration, litigation or investigation (each, an “Action”) (i) pending or, to
the Knowledge of Sellers, threatened against or affecting in any material respect MTC or any of its
Subsidiaries, or (ii) that challenges or seeks to prevent, enjoin or otherwise delay the
Acquisition. To the Knowledge of the Sellers, no event has occurred or circumstances exist that
would reasonably be expected to give rise to any such Action. There is no Action against any
current or, to the Knowledge of Sellers, former director or employee of MTC or any of its
Subsidiaries with respect to which MTC or any such Subsidiary has or is reasonably likely to have
an indemnification obligation.

          (b) There is no unsatisfied judgment, penalty or award against MTC or any of its Subsidiaries
or any of their respective properties or assets. There is no Order to which MTC or any of its
Subsidiaries or any of their respective properties or assets are subject.

     4.20 Employee Benefits.

          (a) The Seller Disclosure Schedule sets forth a true and complete list of all Benefit Plans.
There has been delivered to Buyer true, accurate and complete copies of each Benefit Plan
(including amendments thereto), trust agreement, insurance or annuity contract, and all summary
plan descriptions, summaries of material modifications, general notices to employees or
beneficiaries and other material agreements, documents or instruments relating thereto.

          (b) Each Benefit Plan has at all times been maintained and administered in material compliance
in accordance with its terms and with all reporting, disclosure and other requirements of all
applicable Laws, including ERISA and the Code and their foreign Law equivalents, including, without
limitation, the German Company Pension Act *BetrAVG) and the German Income Tax Act (EStG). Each
Benefit Plan that is an employee pension benefit plan (as defined in Section 3(2) of ERISA) and
which is intended to be tax qualified under Section 401(a) of the Code (a “Pension Plan”), has been
determined by the Internal Revenue Service to be so qualified and no condition exists that will or
would reasonably be expected to give rise to disqualification or loss of tax-exempt status of any
such plan or related trust. No Benefit Plan is a “defined benefit plan” within the meaning of
Section 3(35) of ERISA or Section 414(j) of the Code and neither MTC, any Subsidiary nor any ERISA
Affiliate has ever maintained, sponsored, contributed to or was required to contribute to such a
plan.

          (c) None of the Sellers, MTC, any Subsidiary of MTC, any ERISA Affiliate or any other person
has engaged in any prohibited transaction as defined by Section 406 of ERISA or Section 4975 of the
Code for which an exemption is not applicable which could subject MTC, any Subsidiary of MTC, any
ERISA Affiliate or any other person to any taxes, penalties or other liabilities imposed by Section
4975 of the Code or Sections 409 or 502 of ERISA.

          (d) No “reportable event” (within the meaning of Section 4043 of ERISA) with respect to which
the 30 day notice requirement has not been waived has occurred with

 - 30 - 

 

respect to any Benefit Plan since the effective date of said Section 4043. To the Knowledge of
the Sellers, no condition exists which could reasonably be expected to subject MTC or any of its
Subsidiaries to a penalty under Section 4071 of ERISA.

          (e) Neither MTC nor any of its Subsidiaries or any ERISA Affiliate is, or has been, party to
any Multiemployer Plan or multiple employer plan. No Benefit Plan is or has been a Multiemployer
Plan or a multiple employer plan.

          (f) Sellers have provided to Buyer: (i) true and complete copies of the three most recent
annual reports on Form 5500 and any attached schedules for each Benefit Plan (if any such report
was required by applicable Law), (ii) true and complete copies of the three most recent actuarial
reports with respect to each Benefit Plan required to have an actuarial report, (iii) the most
recent audited financial statement with respect to each Benefit Plan required to have an audited
financial statement, and (iv) a true and correct copy of the most recent determination letter
issued by the Internal Revenue Service for each Pension Plan.

          (g) With respect to each Benefit Plan, no suit or other litigation (other than routine claims
for benefits in the ordinary course of plan activities) have been brought or, to the Knowledge of
the Sellers, threatened against or with respect to any Benefit Plan, MTC, any Subsidiary of MTC,
any ERISA Affiliate or any trustee or agent of any Benefit Plan, and, to the Knowledge of the
Sellers, there are no facts or circumstances that would reasonably be expected to give rise to any
such suit, action or other litigation.

          (h) There are no outstanding liabilities of any Benefit Plan other than liabilities for
benefits to be paid to participants in any Benefit Plan and their beneficiaries in accordance with
the terms of such Benefit Plan.

          (i) No Benefit Plan provides health, life, death or other welfare benefit coverage (whether or
not insured) beyond the termination of an employee’s employment, except as required by Part 6 of
Subtitle B of Title I of ERISA or section 4980B of the Code or any State laws requiring
continuation of benefits coverage following termination of employment.

          (j) All contributions to Benefit Plans that were required to be made under such Benefit Plans
or applicable Law have been made, and all benefits accrued under any unfunded Benefit Plan have
been paid, accrued or otherwise adequately reserved in accordance with GAAP, all of which accruals
under unfunded Benefit Plans are as disclosed in the Seller Disclosure Schedule, and each of MTC
and each Subsidiary has performed all material obligations required to be performed under all
Benefit Plans, including, without limitation, each required pension adjustment under Section 16 of
the German Company Pension Act (BetrAVG).

          (k) Except as set forth in the Seller Disclosure Schedule, neither MTC nor any Subsidiary is
subject to any (i) Contract or oral agreement with any stockholder, director, officer or other
employee of MTC or any Subsidiary (A) the benefits of which are contingent either alone or in
combination with any other event (e.g. termination of employment), or the terms of which will be
materially altered, upon the occurrence of the Acquisition, (B) providing any term of employment or
compensation guarantee or (C) providing severance benefits or other benefits after the termination
of employment of such director, officer or employee; or (ii) Contract,

 - 31 - 

 

including any stock option plan, stock appreciation right plan, restricted stock plan, stock
purchase plan, employment agreement, change in control agreement or severance benefit plan, the
benefits of which shall be triggered or increased, or the vesting of the benefits under which shall
be accelerated, by the Acquisition, either alone or in combination with any other event, or the
value of any benefits under which shall be calculated on the basis of the value of the Acquisition.

          (l) Each individual that renders services to MTC or any Subsidiary who is classified by MTC or
such Subsidiary as having the status of (i) an independent contractor or any other non-employee
status, or (ii) as an exempt or non-exempt employee, is properly so classified for all purposes,
including but not limited to (a) taxation and tax reporting and social security contributions, (b)
eligibility to participate in the Benefit Plans, (iii) Fair Labor Standards Act purposes, and (iv)
applicable Laws governing the payment of wages.

          (m) Each Benefit Plan that is a “nonqualified deferred compensation plan” (as defined under
Section 409A(d)(1) of the Code) has been operated and administered in good faith compliance with
Section 409A of the Code during the period beginning January 1, 2005 through the date hereof and
has not been materially modified since October 2, 2004. Any amounts paid or payable pursuant to
each Benefit Plan subject to Section 409A is not includible in the gross income of a service
recipient (within the meaning of Section 409A) until received by the service recipient and is not
subject to interest or the additional tax imposed by Section 409A of the Code, and there are no
agreements in place that would entitle a participant in any such plan to reimbursement for any such
additional tax.

          (n) Neither the Sellers, MTC nor any of its Subsidiaries are subject to any legal,
contractual, equitable, or other obligation to establish or continue any Benefit Plan on or after
the date hereof.

          (o) Neither the Sellers, MTC nor any of its Subsidiaries have made any representations or
communications (directly or indirectly, orally, in writing or otherwise) with respect to
participation, eligibility for benefits, vesting, benefit accrual coverage or other material terms
of any Benefit Plan to any employee, beneficiary or other person other than those which are in
accordance with the terms and provisions of each such Benefit Plan as in effect immediately prior
to the Closing Date.

          (p) Except as disclosed on the Seller Disclosure Schedule, MTC and each ERISA Affiliate may,
in any manner, subject to the limitations imposed by applicable Law, and without the consent of any
employee, beneficiary or other person, prospectively terminate, modify or amend any Benefit Plan or
any other plan, program or practice (or its participation in such Benefit Plan or any other plan,
program or practice) effective as of a date on or after the date hereof.

 - 32 - 

 

     4.21 Labor and Employment Matters.

          (a) The Seller Disclosure Schedule sets forth (i) a list of all employees of MTC and its
Subsidiaries (including title and position) as of the date hereof, and (ii) the base compensation
and benefits of each such employee whose base compensation and bonus exceeded, in the aggregate,
$75,000 in the year ending December 31, 2005 or whose base compensation and target bonus exceeds or
is expected to exceed, in the aggregate, $75,000 in the year ending December 31, 2006. No former
employees of MTC or any of its Subsidiaries are receiving or scheduled to receive pension benefits,
medical insurance coverage or other benefits from MTC or any Subsidiary. Subject to applicable
Law, all directors, employees, contractors and consultants of MTC and its Subsidiaries may be
terminated by MTC or a Subsidiary at any time with or without any severance or other liability to
MTC or such Subsidiary.

          (b) Neither MTC nor any of its Subsidiaries is a party or subject to any labor union or
collective bargaining agreement or any German shop agreement (Betriebsvereinbarung). Except as set
forth in that certain letter dated October 19, 2006 from IG Metall to Rune G. Vestman (a copy of
which Sellers have delivered to Buyer), there is no German works council (Betriebrsrat) and, to the
Knowledge of Sellers, there is no employee effort to establish any such works council. There have
not been since January 1, 2003 and, to the Knowledge of Sellers, there are not pending or
threatened any labor disputes, work stoppages, requests for representation, pickets, work slow
downs due to labor disagreements or any actions or arbitrations which involve the labor or
employment relations of MTC or any of its Subsidiaries. There is no unfair labor practice, charge
or complaint pending, or, to the Knowledge of Sellers, threatened before the National Labor
Relations Board or a German labor court. To the Knowledge of Sellers, no event has occurred or
circumstances exist that would reasonably be expected to give rise to a work stoppage or other
labor dispute.

          (c) None of MTC or any of its Subsidiaries is a party to any Contract which restricts MTC or
any of its Subsidiaries from relocating, closing or terminating any of its operations or facilities
or any portion thereof or which would require the payment of any severance or other comparable
payment to any affected employee. None of Sellers, MTC or any of its Subsidiaries have since
January 1, 2003 effectuated a “plant closing” (as defined in the WARN Act or the German Works
Constitution Act (BetrAVG)) or (ii) a “mass lay-off” (as defined in the WARN Act or the German
Termination Protection Act (KSchG)), in either case affecting any site of employment or facility of
MTC or any of its Subsidiaries, except in accordance with the WARN Act or the German Termination
Protection Act (KSchG), as the case may be. The consummation of the Acquisition will not create
liability for any act by MTC or any of its Subsidiaries on or prior to the Closing under the WARN
Act or any other Law respecting reductions in force or the impact on employees on plant closings or
sales of businesses.

     4.22 Environmental.

          (a) Each of MTC and its Subsidiaries has obtained, and is in material compliance with, all
Environmental Permits required in connection with its operations and the Leased Real Property. Each
Environmental Permit, together with the name of the Governmental Authority issuing such
Environmental Permit, is set forth in the Seller Disclosure Schedule. All

 - 33 - 

 

such Environmental Permits are valid and in full force and effect and all renewal applications
for such Environmental Permits have been timely filed with the appropriate Governmental Authority.
None of such Environmental Permits will be terminated, revoked, withdrawn, cancelled, suspended or
modified or become terminable, revocable, withdrawable, suspendable or modifiable as a result of
the Acquisition. Each of MTC and its Subsidiaries is currently in material compliance with all
Environmental Laws. None of MTC or any of its Subsidiaries has received written notice alleging
that MTC or any of its Subsidiaries is not in material compliance with Environmental Laws.

          (b) There are no past, pending or, to the Knowledge of Sellers, threatened Environmental
Actions against or affecting MTC or any of its Subsidiaries, and to the Knowledge of Sellers, there
are no facts or circumstances which would reasonably be expected to form the basis for any
Environmental Action against MTC or any such Subsidiary.

          (c) Neither MTC nor any of its Subsidiaries has entered into or agreed to any Order, and
neither MTC nor any of its Subsidiaries is subject to any Order, relating to compliance with any
Environmental Law or to investigation or cleanup of a Hazardous Substance under any Environmental
Law.

          (d) There has been no treatment, storage, disposal or Release by MTC or any of its
Subsidiaries of any Hazardous Substance at, from, into, on or under any Leased Real Property or any
other property currently or formerly owned, operated or leased by MTC or any of its Subsidiaries.
To the Knowledge of Sellers, no Hazardous Substances are present in, on, about or migrating to or
from any Leased Real Property that could be expected to give rise to an Environmental Action
against MTC or any of its Subsidiaries.

          (e) Neither MTC nor any of its Subsidiaries has received a CERCLA 104(e) information request
nor has MTC or any of its Subsidiaries been named a potentially responsible party for any National
Priorities List site under CERCLA or any other site under analogous state Law. Neither MTC nor any
of its Subsidiaries has received an analogous notice or request from any non-U.S. Governmental
Authority.

          (f) To the Knowledge of Sellers, there are no aboveground tanks or underground storage tanks
on, under or about the Leased Real Property. To the Knowledge of Sellers, any aboveground or
underground tanks previously situated on the Leased Real Property or any other property currently
or formerly owned, operated or leased by MTC or any of its Subsidiaries have been removed in
accordance with all Environmental Laws and, to the Knowledge of Sellers, no residual contamination,
if any, remains at such sites in excess of applicable standards.

          (g) To the Knowledge of Sellers, there are no polychlorinated biphenyls (“PCBs”) leaking from
any article, container or equipment on, under or about the Leased Real Property and there are no
such articles, containers or equipment containing PCBs in, at, on, under or within the Leased Real
Property.

          (h) To the Knowledge of Seller, there is no asbestos containing material or lead based paint
containing materials in, at, on, under or within the Leased Real Property.

 - 34 - 

 

          (i) Neither MTC nor any of its Subsidiaries has transported or, to the Knowledge of Sellers,
arranged for the treatment, storage, handling, disposal, or transportation of any Hazardous
Material to any off-site location which is an Environmental Clean-up Site.

     4.23 Insurance.

          (a) The Seller Disclosure Schedule sets forth (i) a true and complete list of each insurance
policy which covers MTC or any of its Subsidiaries or their respective businesses, properties,
assets, directors or employees (the “Policies”) and (ii) a list of all pending claims and the
claims history for MTC and its Subsidiaries during the current year and the preceding three years
(including with respect to insurance obtained but not currently maintained). There are no pending
claims under any of such Policies as to which coverage has been questioned, denied or disputed by
the insurer or in respect of which either MTC or any of its Subsidiaries has received any notice
that the insurer has reserved its rights.

          (b) There are no self-insurance arrangements by or affecting MTC or any of its Subsidiaries
other than standard deductibles.

          (c) All Policies are in full force and effect and are enforceable in accordance with their
terms and will continue in full force and effect with respect to MTC and its Subsidiaries following
the Acquisition.

          (d) Neither MTC nor any of its Subsidiaries has received a notice of cancellation of any
Policy or of any material changes that are required in the conduct of the businesses of MTC and its
Subsidiaries as a condition to the continuation of coverage under, or renewal of, any such Policy.
To the Knowledge of Sellers, there is no existing default or event which, with the giving of notice
or lapse of time or both, would constitute a default under any Policy or entitle any insurer to
terminate or cancel any Policy. Sellers have no Knowledge of any threatened termination of, or
material premium increase with respect to, any Policy and none of such Policies provides for
retroactive premium adjustments.

     4.24 Product Warranty.

          (a) There are no warranties (express or implied) outstanding with respect to any products
currently or formerly assembled, sold, distributed, provided or shipped (“Products”), or any
services rendered, by MTC or any of its Subsidiaries, beyond that set forth in the standard
conditions of sale or service, copies of which are included in the Seller Disclosure Schedule.

          (b) Each Product assembled, sold, distributed, provided or shipped, or service rendered, by
MTC or any of its Subsidiaries has been in conformity with all applicable contractual commitments
and warranties. There are no material design, manufacturing or other defects, latent or otherwise,
with respect to any Products. Each Product that has been assembled, sold, distributed, provided or
shipped prior to Closing contains all warnings required by applicable Law.

          (c) The July 30, 2006 Balance Sheet reflects adequate reserves (in accordance with GAAP) for
product design and warranty claims and other damages in connection with any

 - 35 - 

 

Product assembled, sold, distributed or shipped, or service rendered, by MTC and its
Subsidiaries on or prior to July 31, 2006.

     4.25 Books and Records.

          (a) The accounting and other financial books and records of the Company are complete and
accurate in all material respects, and are maintained in accordance with customary business
practices.

          (b) The minute books, the stock certificate books, and the stock record books of MTC and its
Subsidiaries contain accurate and complete records of all meetings, or actions taken by written
consent, of the stockholders, the board of directors and any committees of the board of directors,
of MTC and its Subsidiaries, and no meeting, or action by written consent in lieu of such meeting,
of any such stockholders, board of directors or committee of such board of directors, has been held
for which minutes have not been prepared and not contained in the minute books. At the Closing,
all of the books and records of MTC and its Subsidiaries will be in the possession of MTC. At the
Closing, Sellers will deliver, or cause to be delivered, to Buyer or its designee all of the minute
books of MTC and its Subsidiaries.

     4.26 Suppliers and Customers. The Seller Disclosure Schedule sets forth with respect
to each of MTC and its Subsidiaries (a) each supplier of materials or components from whom
purchases exceeded $200,000 in the year ended 2004 or 2005 (including, without limitation, the top
twenty suppliers for each of 2004 and 2005 by dollar amount of purchase volume), (b) each supplier
who constitutes a sole source of supply to MTC or any of its Subsidiaries, and (c) with respect to
each year ended 2004 or 2005 and the six-month period ended June 30, 2006, the top twenty customers
in terms of MTC’s and its Subsidiaries’ revenues on a consolidated basis for such year or period.
The relationships of each of MTC and its Subsidiaries with each such supplier and customer listed
on the Seller Disclosure Schedule are good commercial working relationships. No such supplier or
customer has canceled or otherwise terminated, or threatened to cancel or otherwise terminate, its
relationship with MTC or any of its Subsidiaries. None of MTC or the Subsidiaries of MTC has
received written notice that any such supplier or customer may cancel or otherwise materially and
adversely modify its relationship with MTC or any of its Subsidiaries or limit its services,
supplies or materials to MTC or any of its Subsidiaries, either as a result of the Acquisition or
otherwise.

     4.27 Brokers or Finders. Except for fees and commissions of Grant Thornton Corporate
Finance LLC which will be paid by Seller, no broker, finder or investment banker is entitled to any
brokerage, finder’s or other fee or commission in connection with the Acquisition contemplated by
this Agreement based upon arrangements made by or on behalf of Seller or MTC or any of its
Subsidiaries.

     4.28 Bank Accounts. The Seller Disclosure Schedule sets forth the name of each bank,
safe deposit company or other financial institution in which MTC or any of its Subsidiaries has an
account, lock box or safe deposit box and the names of all persons authorized to draw thereon or
have access thereto.

 - 36 - 

 

     4.29 Powers of Attorney. There are no outstanding powers of attorney executed by or
on behalf of MTC or any of its Subsidiaries in favor of any Person, other than those given to
freight forwarders for the import or export of Products in the ordinary course or business.

     4.30 Certain Acquisitions. Except as set forth in the Seller Disclosure Schedule,
there is no Acquisition, and no Acquisition now proposed, to which MTC or any Subsidiary was or is
to be a party and in which any director or officer of MTC or any Subsidiary or any person owning of
record or beneficially more than 10% of the outstanding capital stock of any class of MTC or any
Subsidiary or any associate of any such person had or has a direct or indirect material interest.

     4.31 Foreign Corrupt Practices Act. To the Knowledge of Sellers, neither MTC or any
Subsidiary nor any director, officer, agent, employee or other person associated with or acting on
behalf of MTC or any Subsidiary has used any corporate funds for any unlawful contribution, gift,
entertainment or other expense relating to political activity or made any direct or indirect
unlawful payment to any United States or foreign government official or employee from corporate
funds or violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977
or paid or made any bribe, rebate, payoff, influence payment, kickback, or other unlawful payment.

     4.32 Completeness of Disclosure. Except as specifically set forth in this Agreement
or the Seller Disclosure Schedule, there are no facts or circumstances of which the Sellers are
aware that would reasonably be expected to have, individually or in the aggregate, a material
adverse effect on the condition (financial or otherwise), operations or results of operations of
MTC and its Subsidiaries taken as a whole. Each exception to a representation and warranty set
forth in the Seller Disclosure Schedule qualifies the specific representation and warranty which is
referenced in the applicable section of the Seller Disclosure Schedule, and no other representation
or warranty.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE BUYER

     The Buyer represents and warrants to each Seller as of the date of this Agreement that the
statements contained in this Article V are true and correct.

     5.1 Corporate Existence. The Buyer is a corporation 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, to carry out its obligations hereunder and to
consummate the Acquisition.

     5.2 Corporate Authority. This Agreement and the consummation of all of the
Acquisition have been duly authorized by all requisite corporate acts or proceedings of the Buyer
and the Buyer has all necessary corporate power and authority to execute and deliver this Agreement
and to perform its obligations hereunder. This Agreement has been duly executed and delivered by
the Buyer and, assuming due authorization, execution and delivery hereof by Sellers, constitutes a
valid and binding obligation of the Buyer, enforceable in accordance with

- 37 -

 

its terms, except as such enforceability may be limited by (i) bankruptcy, insolvency
reorganization, moratorium or other similar Laws affecting or relating to creditors’ rights
generally, and (ii) the availability of injunctive relief and other equitable remedies. The
execution and delivery of this Agreement by the Buyer and the consummation by the Buyer of the
Acquisition will not (a) violate, conflict with or result in the breach of the Charter Documents of
the Buyer, (b) conflict with or violate any Law, judgment or decree of any Governmental Authority
applicable to the Buyer 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 or cancellation,
modification or acceleration of, any Contract to which the Buyer is a party, except, in the case of
clauses (b) and (c), as would not reasonably be expected to have a Buyer Material Adverse Effect.

     5.3 Governmental Approvals; Consents. No Action is pending or, to the Knowledge of
the Buyer, overtly threatened in writing against the Buyer which would enjoin or delay the
Acquisition. Except as required by Antitrust Laws, no consent, approval, order or authorization
of, license or permit from, notice to or registration, declaration or filing with any Governmental
Authority or of any third party, is or has been required on the part of the Buyer in connection
with the execution and delivery of this Agreement or the consummation of the Acquisition, except
for such consents, approvals, orders or authorizations of, licenses or permits, filings or notices
the failure of which to obtain or make would not reasonably be expected to have a Buyer Material
Adverse Effect or which have been obtained.

     5.4 Finders; Brokers. Except for Groton Partners LLC (whose expenses will be paid by
the Buyer), the Buyer is not a party to any agreement with any finder or broker, or in any way
obligated to any finder or broker for any commissions, fees or expenses, in connection with the
origin, negotiation, execution or performance of this Agreement for which any Seller or any
Affiliate of any Seller will be liable.

     5.5 Purchase for Investment. The Buyer is aware that the Shares being acquired are
not registered under the Securities Act, or under any state or foreign securities Laws. The Buyer
is not an underwriter, as such term is defined under the Securities Act, and the Buyer is
purchasing such Shares solely for investment, with no present intention to distribute any Shares to
any Person, and the Buyer will not sell or otherwise dispose of the Shares, except in compliance
with the registration requirements or exemption provisions under the Securities Act and the rules
and regulations promulgated thereunder, or any other applicable securities laws.

     5.6 Litigation. There is no pending or, to the Knowledge of the Buyer, overtly
threatened in writing Action, against the Buyer which reasonably would be expected to affect the
legality, validity or enforceability of this Agreement or the consummation of the Acquisition.

     5.7 Due Diligence and Independent Investigation.

          (a) The Buyer has conducted such investigations of the Business as it deems necessary and
appropriate, and has received all of the information that it has requested from MTC and Sellers in
connection with the execution and delivery of this Agreement and the consummation or the
Acquisition.

- 38 -

 

          (b) In making the decision to enter into this Agreement and to consummate the Acquisition,
other than reliance on the representations and warranties contained in Article IV, the
Buyer acknowledges and agrees that it has relied solely on its own independent investigation,
analysis and evaluation of MTC and the Business (including the Buyer’s own estimate and appraisal
of the value of MTC, the Business, and the financial condition, operations and prospects of MTC and
the Business). The representations and warranties of the Sellers set forth in Article IV
constitute the sole and exclusive representations and warranties of the Sellers to the Buyer in
connection with the Acquisition contemplated hereby, and the Buyer understands, acknowledges and
agrees that all other representations and warranties of any kind or nature expressed or implied
(including, but not limited to, any relating to the future or historical financial condition,
results of operations, assets or liabilities of MTC, or the quality, quantity or condition of MTC’s
assets) are specifically disclaimed by the Sellers. The Sellers do not make or provide, and the
Buyer hereby waives, any warranty or representation, express or implied, as to the quality,
merchantability, fitness for a particular purpose, conformity to samples, or condition of MTC’s or
its Subsidiaries’ assets or any part thereof.

          (c) The Buyer has no knowledge that the representations and warranties of Sellers set forth in
this Agreement are not true and correct.

ARTICLE VI

AGREEMENTS OF ALL PARTIES

     6.1 Conduct of Business Pending Closing. From the date hereof until the Closing,
except as consented to by the Buyer in writing:

          (a) Sellers will cause MTC and each of its Subsidiaries to maintain itself at all times as a
corporation validly existing and in good standing under the Laws of the jurisdiction of its
incorporation;

          (b) Sellers will cause MTC and each of its Subsidiaries to carry on its business and
operations in the ordinary course and substantially in the manner carried on as of the date hereof
and Sellers will not permit MTC or any of its Subsidiaries to engage in any activity or Acquisition
or make any commitment to purchase or spend other than in the ordinary course of its business as
heretofore conducted; provided, however, without the written consent of Buyer, Sellers will not
permit MTC and its Subsidiaries to make capital expenditures exceeding, in the aggregate, $100,000;

          (c) Sellers will not permit MTC or any of its Subsidiaries to declare, authorize or pay any
distribution to its stockholders and Sellers will not permit MTC or any of its Subsidiaries to
redeem, purchase or otherwise acquire or agree to redeem, purchase or otherwise acquire any of its
Equity Securities, provided however, at or prior to the Closing, Sellers will cause
(i) MTC to distribute to its shareholders all of the Capital Stock owned by MTC in The Mason and
Dixon Lines Incorporated, a Tennessee corporation, and Arizona Kazakstan Development Group
Incorporated, an Arizona corporation, (ii) MTC to redeem all of the outstanding shares of preferred
stock of MTC, together with all accrued and unpaid dividends thereon, in exchange for promissory
notes and/or other indebtedness of MTC and (iii) MTC to

- 39 -

 

purchase all of the outstanding shares of capital stock of Oxy-Dry not owned by MTC in
exchange for promissory notes and/or other indebtedness of MTC.

          (d) Sellers will not permit MTC or any of its Subsidiaries to pay or provide or obligate
itself to pay or to increase or provide any compensation, commission or bonus or to provide any
benefit under any Benefit Plan or any other arrangement to any director, officer, employee,
consultant, independent contractor or agent (excluding accountants, attorneys and other
professional advisors) as such, except for the regular compensation and commissions payable to and
the existing benefits available under the Benefit Plans for such director, officer, employee,
consultant, independent contractor or agent (excluding accountants, attorneys and other
professional advisors) at the rate in effect on the date of this Agreement and Sellers shall not
permit MTC or any of its Subsidiaries to establish or increase or promise to increase any benefit
under any Benefit Plan, or enter into an employment, severance, change in control or similar
agreement, in any case, except for increases or other changes required by Law;

          (e) Sellers will cause MTC and each of its Subsidiaries to continue to carry the insurance
policies it currently has in effect;

          (f) Sellers will cause MTC and each of its Subsidiaries to use all commercially reasonable
efforts to preserve for the Buyer, the Business and their respective employees and independent
contractors, and their respective relationships with suppliers, licensees, distributors and
customers and others having business relationships with MTC and each of its Subsidiaries,
respectively;

          (g) Sellers will not permit MTC or any of its Subsidiaries to sell or otherwise dispose of or
pledge or otherwise encumber (other than for Permitted Liens), or obligate itself to sell or
otherwise dispose of or pledge or otherwise encumber (other than Permitted Liens) any of its
properties or assets except in the ordinary course of business and Sellers will cause MTC and its
Subsidiaries to maintain its facilities, machinery and equipment in good operating condition and
repair, subject only to ordinary wear and tear;

          (h) Sellers will not permit MTC or any of its Subsidiaries to amend its Charter Documents; and

          (i) Sellers will not permit MTC or any of its Subsidiaries to make any change in its
accounting or Tax methods or practices or its Tax elections or enter into any agreement or
arrangement with respect to Taxes or settle or compromise any income Tax liability of MTC or any of
its Subsidiaries; and

          (j) without limiting the foregoing, Sellers will consult with the Buyer regarding all
significant transactions and proposals relating to the Business or the assets of MTC or any of its
Subsidiaries.

     6.2 Cooperation with Respect to Financing. If and to the extent reasonably requested
by Buyer, Sellers shall cooperate with the Buyer in connection with the Buyer’s efforts to obtain
the financing.

- 40 -

 

     6.3 Confidential Information. Sellers shall cause MTC and each of its Subsidiaries to
exert reasonable efforts, at least as stringent as those employed by it prior to the date of this
Agreement, for the preservation and maintenance of its Proprietary Information, to preserve and
maintain all Proprietary Information of MTC and each of its Subsidiaries, and, except as required
by Law, Sellers shall not disclose, and shall not permit MTC or any of its Subsidiaries to
disclose, to any third person (other than the Buyer and its representatives) any such Proprietary
Information, except in the ordinary course of business; provided, however, that Sellers shall be
free to disclose all or any of such Proprietary Information which are a matter of public knowledge.
The covenants of Sellers contained in this Section 6.3 shall survive the Closing for a
period of five years.

     6.4 Buyer’s Actions. The Buyer shall not acquire or agree to acquire, nor permit any
of its Affiliates to acquire or agree to acquire, by merging or consolidating with, or by
purchasing a substantial portion of the assets of or equity in, or by any other manner, any Person
or portion thereof, or otherwise acquire or agree to acquire any assets, if the entering into of a
definitive agreement relating to or the consummation of such acquisition, merger or consolidation
would reasonably be expected to (a) impose any delay in the obtaining of, or significantly increase
the risk of not obtaining, any authorizations, consents, orders, declarations or approvals of any
Governmental Authority necessary to consummate the Acquisition or the expiration or termination of
any applicable waiting period, (b) significantly increase the risk of any Governmental Authority
entering an order prohibiting the consummation of the Acquisition or (c) delay the consummation of
the Acquisition.

     6.5 Other Offers. Sellers shall cause MTC and its directors, officers, employees and
other representatives to cease any discussions or negotiations with any Person (other than the
Buyer or any Governmental Authority) that may be ongoing as of the date of this Agreement with
respect to an Acquisition Proposal. Until the earlier to occur of the termination of this
Agreement in accordance with Article X or the Closing, Sellers shall not, and shall cause
MTC and its directors, officers, employees and other representatives not to, (a) solicit, initiate
or knowingly encourage the initiation of any Acquisition Proposal or (b) participate in any
discussions with any Person (other than the Buyer or any Governmental Authority) regarding, or
furnish to any Person (other than the Buyer or any Governmental Authority) any non-public
information in connection with, any Acquisition Proposal. Sellers shall not enter into any
contract or agreement (other than a confidentiality agreement) with respect to an Acquisition
Proposal.

     6.6 Mutual Cooperation; No Inconsistent Action.

          (a) Subject to the terms and conditions of this Agreement, Sellers, on one hand, and the
Buyer, on the other hand, shall cooperate with each other and use their respective best efforts to
promptly (i) take or cause to be taken all actions, and do or cause to be done all things,
necessary, proper or advisable under this Agreement and applicable Laws to consummate the
Acquisition as soon as practicable, including preparing and filing promptly and fully all
documentation to effect all necessary filings, notices, petitions, statements, registrations,
submissions of information, applications and other documents (including any required filings under
applicable Antitrust Laws) and (ii) obtain all approvals, consents, registrations, permits,
authorizations and other confirmations from any Governmental Authority necessary to

- 41 -

 

consummate the Acquisition. Subject to applicable Laws relating to the exchange of
information and in addition to Section 6.6(b), the Parties shall have the right to review
in advance, and to the extent practicable each will consult the other regarding, all the
information relating to the Party, as the case may be, that appears in any filing made with, or
written materials submitted to, any third party and/or any Governmental Authority in connection
with the Acquisition.

          (b) Each Party shall use its best efforts to (i) cooperate in all respects with each other in
connection with any filing or submission with any Governmental Authority in connection with the
Acquisition and in connection with any investigation or other inquiry by or before a Governmental
Authority relating to the Acquisition, including any Action initiated by a private party, and (ii)
keep the other Party informed in all material respects and on a reasonably timely basis of any
communication received by such Party or its Affiliates from, or given by such Party to, any other
Governmental Authority and of any communication received or given in connection with any Action by
a private party, in each case regarding any of the Acquisition.

          (c) In furtherance and not in limitation of the covenants of the Parties contained in this
Section 6.6, each Party shall use commercially reasonable efforts to resolve such
objections, if any, as may be asserted by a Governmental Authority or other Person with respect to
the Acquisition. Without limiting any other provision hereof, the Parties shall each use
commercially reasonable efforts to (i) avoid the entry of, or to have vacated or terminated, any
decree, order or judgment that would restrain, prevent or delay the consummation of the
Acquisition, on or before the Termination Date, including by defending through litigation on the
merits any claim asserted in any court by any Person, and (ii) avoid or eliminate each and every
impediment under any Antitrust Law that may be asserted by any Governmental Authority with respect
to the Acquisition so as to enable the consummation of the Acquisition to occur as soon as
reasonably possible (and in any event no later than the Termination Date). In addition, the Buyer
shall use its best efforts to defend through litigation on the merits any claim asserted in court
by any Party in order to avoid entry of, or to have vacated or terminated, any decree, order or
judgment (whether temporary, preliminary or permanent) that would prevent the Closing from
occurring as promptly as practicable.

          (d) The Sellers, on the one hand, and the Buyer, on the other hand, shall notify and keep the
other advised as to any Action pending and known to such Party, or, to its Knowledge, overtly
threatened in writing, which challenges the Acquisition. Subject to Section 6.5 and
Article X, MTC, Sellers and the Buyer shall not take any action inconsistent with their
obligations under this Agreement or which would materially hinder or delay the consummation of the
Acquisition.

     6.7 Public Disclosures. Prior to the Closing Date, no Party shall (except in the case
of MTC with respect to disclosures made to the employees or customers of MTC and its Subsidiaries)
issue any press release or make any other public disclosures concerning the Acquisition or the
contents of this Agreement without the prior written consent of the other Party, unless a Party
believes, upon advice of counsel, it is required by Law or regulation (of any applicable stock or
securities exchange or otherwise) to make such public disclosure. The Parties shall reasonably
cooperate as to the timing and contents of any public announcement or communication.

- 42 -

 

     6.8 Access to Records and Personnel.

          (a) From the date hereof until the earlier of the Closing or termination of this Agreement,
upon reasonable notice, Sellers shall cause MTC and each of its Subsidiaries to (i) afford the
Buyer and its representatives reasonable access to the senior managers of MTC and its Subsidiaries
and (ii) furnish to the representatives of the Buyer such additional financial and operating data
and other material information regarding the Business (or copies thereof) as the Buyer may from
time to time reasonably request; provided, however, that any such access or furnishing of
information shall be conducted at the Buyer’s expense, during normal business hours, and in such a
manner as not to interfere with the normal operations of the Business. Notwithstanding anything to
the contrary in this Agreement, neither Sellers, MTC nor its Subsidiaries shall be required to
disclose any information to the Buyer, if such disclosure would (i) contravene any applicable Laws,
fiduciary duty or binding agreement entered into prior to the date hereof, (ii) disrupt or
jeopardize any material customer or vendor relationship or (iii) include Tax information pertaining
to Sellers or their respective Affiliates, other than MTC and its Subsidiaries.

          (b) From and after the Closing Date, the Parties shall, and the Buyer shall cause MTC and its
Subsidiaries to, retain the books, records, documents, instruments, accounts, correspondence,
writings, evidences of title and other papers relating to MTC and its Subsidiaries in their
possession (the “Books and Records”) for eight (8) years or for such longer period as may be
required by Law.

          (c) From and after the Closing Date, the Parties shall allow each other, and Buyer shall cause
MTC and each of its Subsidiaries to allow each Seller, its Affiliates and their respective
representatives, reasonable access to the Books and Records and to personnel having knowledge of
the whereabouts and/or contents of the Books and Records, for legitimate non-competitive business
reasons, including the preparation of the Post-Closing Working Capital Statement and any Seller’s
Tax Returns and the defense of any Action. Each Party shall be entitled to recover its
out-of-pocket costs (including copying costs) incurred in providing such Books and Records to the
other Party, except with respect to information provided by Buyer, MTC and its Subsidiaries to
Sellers in connection with the preparation of the Closing Balance Sheet and Working Capital
Statement or any Seller’s Tax Returns. The requesting Party shall, and the Buyer shall cause MTC,
each of its Subsidiaries and their Affiliates to hold in confidence all confidential information
identified as such by, and obtained after the Closing from, the disclosing Party, any of its
officers, agents, representatives or employees; provided, however, that information that (i) was in
the public domain; (ii) was in fact known to the requesting Party prior to disclosure by the
disclosing Party, its officers, agents, representatives or employees; (iii) becomes known to the
requesting Party from or through a third party not under an obligation of non-disclosure to the
disclosing Party; or (iv) Seller is required by Law or otherwise deems necessary and proper to
disclose in connection with the filing, examination or defense of any Tax Return or other document
required to be filed, shall not be deemed to be confidential information. In addition, the Parties
agree that confidential information may be used for the purpose for which it was supplied.

     6.9 Update to Disclosure. Between the date of this Agreement and the Closing, Buyer
shall promptly inform Sellers in writing of any material variances discovered by the Buyer

- 43 -

 

or their representatives in the representations and warranties of MTC and Sellers contained in
this Agreement. MTC and Sellers shall have the right to update the Seller Disclosure Schedule (the
“Updated Schedules”) with respect to any matter arising after the date hereof but prior to the
Closing, provided that Sellers deliver the Updated Schedules to Buyer no later than five business
days prior to the Closing Date. If Buyer receives Updated Schedules from Sellers, Buyer shall have
the right to (a) terminate this Agreement pursuant to Section 10.1(c)(i), provided the
matters disclosed on such Updated Schedules would otherwise result in the condition set forth in
Section 7.1 not being satisfied, or (b) proceed with the Closing, provided that Sellers
shall not be deemed to be in breach of their representations and warranties hereunder as a result
of any updated matter set forth in such Updated Schedules and upon the Closing the Buyer shall be
deemed to have waived all claims against Sellers, including all indemnity claims pursuant to
Article IX, for all updated matters set forth in such Updated Schedules. For all purposes
under this Agreement, the Updated Schedules shall be deemed to supersede and amend the original
Disclosure Schedule dated as of the date of this Agreement.

     6.10 Resignation of Directors. Prior to or at the Closing, Sellers will cause each
director of MTC and each of its Subsidiaries to resign as a director of MTC or such Subsidiary, as
the case may be, effective at the Closing.

     6.11 Director and Officer Indemnification.

          (a) From and after the Closing Date, the Buyer shall, and shall cause MTC and its Subsidiaries
to, (i) indemnify and hold harmless each individual who at the Closing Date is, or at any time
prior to the Closing Date was, a director, officer, agent, or employee of MTC or any of its
Subsidiaries (collectively, the “Agents”) with respect to all claims, liabilities, losses, damages,
judgments, fines, penalties, costs (including amounts paid in settlement or compromise) and
expenses (including fees and expenses of legal counsel) in connection with any Action (whether
civil, criminal, administrative or investigative), whenever asserted, based on or arising out of,
in whole or in part, acts or omissions by an Agent in the Agent’s capacity as a director, officer
or employee of MTC or any of its Subsidiaries or taken at the request of MTC or any of its
Subsidiaries (including in connection with serving at the request of MTC or any of its Subsidiaries
as a director, officer, employee or agent of another Person (including in connection with the
Acquisition)), to the fullest extent permitted under applicable Law, and (ii) assume all
obligations of MTC and its Subsidiaries to the Agents in respect of indemnification and exculpation
from liabilities for acts or omissions occurring at or prior to the Closing Date as provided in the
applicable organizational or Charter Documents, which shall survive the Closing and continue in
full force and effect in accordance with their respective terms. Without limiting the foregoing,
the Buyer, from and after the Closing Date, shall cause the organizational and Charter Documents of
MTC and its Subsidiaries to contain provisions no less favorable to the Agents with respect to
limitation of liabilities of directors and officers and indemnification than are set forth as of
the date of this Agreement in the applicable organizational or Charter Documents of MTC and its
Subsidiaries, which provisions shall not be amended, repealed or otherwise modified in a manner
that would adversely affect the rights thereunder of the Agents. In addition, the Buyer shall, and
shall cause MTC and its Subsidiaries to, pay any expenses (including fees and expenses of legal
counsel) of any Agent under this Section 6.11 (including in connection with enforcing the
indemnity and other obligations provided for in this Section 6.11) as incurred to the
fullest extent permitted under applicable Law, provided that the Person to

- 44 -

 

whom expenses are advanced provides an undertaking to repay such advances to the extent
required by applicable Law.

          (b) In the event any claim is asserted or made, any determinations that are required to be
made with respect to whether an Agent’s conduct complies with an applicable standard shall be made
by independent legal counsel selected by the Agent; provided that nothing in this Section
6.11 shall impair any rights of any current or former director or officers of MTC or any of its
Subsidiaries, including pursuant to the respective organizational and Charter Documents, under
applicable Law or otherwise.

          (c) The obligations of the Buyer, MTC and its Subsidiaries under this Section 6.11
shall continue in full force and effect following the Closing and shall not be terminated or
modified in such a manner as to adversely affect the rights of any Agent to whom this Section
6.11 applies unless the affected Agent shall have consented in writing to such termination or
modification (it being expressly agreed that the Agent to whom this Section 6.11 applies
shall be third party beneficiaries of this Section 6.11). The provisions of this
Section 6.11 are (i) intended to be for the benefit of, and shall be enforceable by, each
Agent, his or her heirs and his or her representatives and (ii) in addition to, and not in
substitution for, any other rights to indemnification or contribution that any such Person may have
by contract or otherwise.

          (d) If Buyer or any of its successors or assigns (i) consolidates with or merges into any
other Person and shall not be the continuing or surviving corporation or entity in such
consolidation or merger or (ii) transfers all or substantially all its properties and assets to any
Person, then, and in each case, proper provision shall be made so that the successors and assigns
of Buyer, assume, honor and discharge the obligations set forth in this Section 6.11.

          (e) Notwithstanding the foregoing, the indemnification provisions of this Section 6.11 shall
not apply to claims for indemnification under Article IX of this Agreement against Edward
T. McLoughlin and Mary Ellen Cahill in their capacity as Sellers.

     6.12 Employee Relations and Benefits.

          (a) Effective as of the Closing, and for a period of 12 months thereafter, the Buyer shall
cause MTC and its Subsidiaries to provide to the individuals who are employees of MTC or any of its
Subsidiaries on the Closing Date (the “Affected Employees”), to the extent and only so long as they
remain as employees of MTC or any of its Subsidiaries during such 12 month period, compensation and
employee benefits which in the aggregate are substantially equal in value to the compensation and
benefits provided by MTC or its Subsidiaries to the Affected Employees at the time of Closing. For
a period of 12 months after Closing, the Affected Employees shall be entitled to severance pay on
substantially the same terms as currently provided by and in a manner consistent with the current
practices of, MTC and its Subsidiaries, as disclosed in the Seller Disclosure Schedule.

          (b) To the extent that the Affected Employees become eligible to participate in any employee
benefit plan, program or arrangement maintained by the Buyer or any of its Affiliates, the Buyer
shall cause the Affected Employees to receive credit for all periods of employment and/or service
with MTC (including service with predecessor employers, where

- 45 -

 

such credit was provided by MTC) prior to the Closing Date for purposes of determining
eligibility and vesting service, to the extent such credit does not result in a duplication of
benefits.

          (c) The Buyer shall cause all welfare benefit plans in which Affected Employees participate
following the Closing to (i) waive all waiting periods with respect to participation and coverage
requirements applicable to the Affected Employees and their covered dependents under such plans
(except to the extent that such waiting periods would apply under the Company’s or any of its
Subsidiary’s plans as in existence prior to the Closing), to the extent permitted by any insurance
carriers and third-party administrators for such plans, and (ii) provide each Affected Employee and
his or her covered dependents with credit for any copayments and deductibles paid during the
relevant plan year prior to Closing in satisfying any applicable deductible or out-of-pocket
requirements under such plans, to the extent permitted by any insurance carriers and third-party
administrators for such plans. This Section 6.12(c) shall not apply with respect to any German
welfare benefit plans which is applicable to German Affected Employees, except that all such plans
shall be continued in accordance with applicable Law and under their regular terms in the same way
as if the Acquisition had not been consummated and that any expectancy rights (Anwartschaftsrechte)
which may exist due to terms of service, copayments by Affected Employees or otherwise will be
fully recognized.

          (d) Nothing contained in this Section 6.12 shall confer upon any Affected Employee, or
legal representative or beneficiary thereof, any rights or remedies, be construed as requiring the
Buyer or MTC to continue any specific employee benefit plans or to continue the employment of any
specific person, or prevent the Buyer or MTC from modifying or terminating any Benefit Plan, or
otherwise modifying the terms and conditions of an Affected Employee’s employment.

          (e) The Buyer shall have full responsibility for compliance with the Worker’s Adjustment and
Restraining Notification Act of 1988, as amended, and be solely responsible for furnishing any
required notice of any “plant closing” or “mass layoff”, as applicable, which arise as a result of
any facility closings, reductions in work force or termination or other action, that MTC and its
Subsidiaries may cause or initiate on or after the Closing Date and shall jointly and severally
indemnify Sellers and their respective Affiliates for any liability related thereto, including
reasonable attorneys’ fees related thereto.

     6.13 Tax Matters.

          (a) Preparation and Filing of Tax Returns. Buyer shall prepare, or cause to be
prepared, and file, or cause to be filed, all Tax Returns of MTC and its Subsidiaries that are due
after the Closing Date. The Sellers shall pay to Buyer, within five (5) days following the filing
of such Tax Returns by Buyer, an amount equal to the portion of their Taxes with respect to such
Tax Returns which relates to any taxable period, or portion thereof, ending on or before the
Closing Date, except to the extent such Taxes are accrued as a liability for purposes of
calculating either the Closing Working Capital Value or Net Income Tax Liabilities as of the
Closing Date. Buyer shall provide drafts of the Tax Returns of MTC and its Subsidiaries (along
with related work papers) which it prepares and files relating to any Pre-Closing Period at least
15 Business Days before such Tax Returns are filed for Sellers’ review and comment.

- 46 -

 

          (b) Cooperation in Filing Tax Returns. Buyer and the Sellers shall, and shall each
cause their Subsidiaries and Affiliates to, provide to the other such cooperation and information,
as and to the extent reasonably requested, in connection with the preparation, execution and filing
of any Tax Return, amended Tax Return or claim for refund, determining liability for Taxes or a
right to refund of Taxes, or in conducting any audit, litigation or other proceeding with respect
to Taxes. Such cooperation and information shall include, without limitation, providing copies of
all relevant portions of relevant Tax Returns, together with relevant accompanying schedules and
relevant work papers, relevant documents relating to rulings and other determinations by taxing
authorities, and relevant records concerning the ownership and Tax basis of property, which any
such party may possess. Each Party will retain all Tax Returns, schedules, work papers, and all
material records and other documents relating to Tax matters, of MTC and its Subsidiaries for the
Tax period first ending after the Closing Date and for all prior Tax periods until the later of
either (i) the expiration of the applicable statute of limitations (and, to the extent notice is
provided with respect thereto, any extensions thereof) for the Tax periods to which the Tax Returns
and other documents relate or (ii) eight years following the due date (without extension) for such
Tax Returns. Thereafter, the Party holding such Tax Returns or other documents may dispose of them
provided that such Party shall give to the other party the notice described in Section 11.1
prior to doing so. Buyer and its Affiliates shall make their employees reasonably available on a
mutually convenient basis at its cost to provide explanation of any documents or information
provided by Buyer (or its Subsidiaries or Affiliates) pursuant to this Section 6.13(b).
Sellers shall make themselves and their employees reasonably available on a mutually convenient
basis at Sellers’ cost to provide explanation of any documents or information provided by Sellers
pursuant to this Section 6.13(b).

          (c) Allocation of Certain Taxes.

     (i) If MTC and its Subsidiaries are permitted but not required under applicable
state, local, or foreign income tax Laws to treat the Closing Date as the last day
of a taxable period, then the parties shall treat that day as the last day of a
taxable period.

     (ii) In the case of Taxes arising in a taxable period of MTC or any of its
Subsidiaries that includes, but does not end on, the Closing Date, except as
provided in Section 6.13(c)(iii), the allocation of such Taxes between the
Pre-Closing Period and the Post-Closing Period shall be made on the basis of an
interim closing of the books as of the end of the Closing Date. If a taxable period
begins on or prior to the Closing Date and ends after the Closing Date, then the
portion of the taxable period that begins on the day following the Closing Date
shall constitute a Post-Closing Period. For the avoidance of doubt, for purposes of
this Agreement, any Tax resulting from the transactions contemplated by this
Agreement, including the distribution of Capital Stock of The Mason and Dixon Lines
Incorporated, a Tennessee corporation, and Arizona Kazakstan Development Group
Incorporated, an Arizona corporation, is allocable to the Pre-Closing Period.

     (iii) In the case of Taxes based on capitalization, debt or shares of stock
authorized, issued or outstanding, or personal property, real property or other
ad 

- 47 -

 

valorem Taxes, that are payable for a taxable period that includes, but
does not end on, the Closing Date, the portion of such Tax which relates to the
portion of such taxable period ending on the Closing Date shall be deemed to be the
amount of such Tax for the entire taxable period multiplied by a fraction, the
numerator of which is the number of days in the taxable period ending on the Closing
Date and the denominator of which is the number of days in the entire taxable
period. However, any such Taxes attributable to any property that was owned by MTC
or any of its Subsidiaries at some point in the Pre-Closing Period, but is not owned
as of the Closing Date (including, but not limited to, any assets owned by, or
Capital Stock of, The Mason and Dixon Lines Incorporated, a Tennessee corporation,
and Arizona Kazakstan Development Group Incorporated, an Arizona corporation) shall
be allocated entirely to the Pre-Closing Period.

          (d) Payment of Transfer Taxes and Fees. The Sellers shall pay all Transfer Taxes
arising out of or in connection with the transactions effected pursuant to this Agreement, and
shall indemnify, defend, and hold harmless Buyer, Buyer’s Affiliates including, following the
Closing, MTC and its Subsidiaries, with respect to such Transfer Taxes. The Sellers shall file all
necessary documentation and Tax Returns with respect to such Transfer Taxes. Buyer shall provide,
and following the Closing shall cause MTC and its Subsidiaries to provide, such cooperation as may
be reasonably requested by Sellers in connection with the preparation, execution and filing of such
Tax Returns. Sellers and Buyer shall, at least ten (10) days prior to the Closing, reasonably
allocate the purchase price among the assets to the extent required or desirable to complete any
necessary Transfer Tax Returns or reports and to compute the amount of any Transfer Taxes and shall
cooperate in the preparation, execution and filing of all such Tax Returns.

          (e) FIRPTA. Sellers shall deliver to the Buyer on the Closing Date a properly
prepared and executed certificate of MTC under Treas. Reg. §§ 1.897-2(h) and 1.1445-2(c) to the
effect that the Shares are not “U.S. real property interests”, within the meaning of Section
897(c)(1) of the Code.

          (f) Refunds. If after the Closing Date, MTC or any of its Subsidiaries receives a
refund of any Tax that is attributable to a Pre-Closing Period, then MTC or its Subsidiary, as the
case may be, shall promptly pay or cause to be paid to Sellers the amount of such refund together
with any interest thereon, but net of any Taxes imposed on any Buyer Indemnitee with respect
thereto. Any refund of Taxes (including any interest thereon) that relates to MTC or any of its
Subsidiaries and that is attributable to a Post-Closing Period shall be the property of MTC or such
Subsidiary, as the case may be, and shall be retained by MTC or such Subsidiary (or promptly paid
by Sellers to MTC or such Subsidiary if any such refund (or interest thereon) is received by any
Seller or any Subsidiary or Affiliate of any Seller). In applying this Section 6.13(f),
any refund of Taxes (including any interest thereon) for a taxable period that includes but does
not end on the Closing Date shall be allocated between the Pre-Closing Period and the Post-Closing
Period in accordance with Section 6.13(c).

     6.14 Non-Compete; Non-Solicit. For a period of five (5) years commencing on the
Closing Date, the Sellers will not, directly or indirectly, or as a stockholder, partner, member,
manager, employee, consultant or other owner or participant in any Person (a) engage in, assist

- 48 -

 

any other Person to, hire any other Person to or have any employees that engage in the
Business (as conducted by MTC and its Subsidiaries on the Closing Date) anywhere in the United
States, or anywhere else in the world where MTC or any of its Subsidiaries does business, or (b)
adversely affect the business relationship of MTC or any of its Subsidiaries with any Person who
is, or was within the one-year period prior to the Closing, a customer, employee or consultant of,
a supplier or service provider to, or other Person having business relations with, MTC or any of
its Subsidiaries. For a period of one (1) year commencing on the Closing Date, the Sellers will
not, directly or indirectly, or as a stockholder, partner, member, manager, employee, consultant or
other owner or participant in any Person, solicit or endeavor to entice away from MTC or any of its
Subsidiaries, or offer employment or a consulting position to, any Person who is an employee or
consultant of MTC or any of its Subsidiaries on the Closing Date, except those whose employment has
been terminated by Buyer, MTC or any of its Subsidiaries following the Closing, and except for
Martin Haver.

     6.15 Medical Insurance. Buyer shall provide to each of Ed McLoughlin and Mary Ellen
Cahill medical insurance comparable to the medical insurance provided at the time by Buyer to its
executive employees and on terms no less favorable than Buyer offers such medical insurance to its
executive employees for a period commencing on the Closing Date and ending on their respective
65th birthdays. Spouses and dependents of Ed McLoughlin and Mary Ellen Cahill shall be
eligible for coverage under such medical insurance in the same manner that spouses and dependents
of Buyer’s employees are eligible for coverage as secondary insureds.

ARTICLE VII

CONDITIONS

     7.1 Conditions to the Obligations of the Buyer.

     (a) The obligations of the Buyer to consummate the Acquisition shall be subject to the
satisfaction or waiver at or prior to the Closing Date of the condition that the representations
and warranties of the Sellers contained in this Agreement shall be true and correct in all material
respects at and as of the Closing Date with the same force and effect as though made at and as of
that time, except (i) for changes specifically permitted by or disclosed pursuant to this
Agreement, (ii) that those representations and warranties which address matters only as of a
particular date shall remain true and correct as of such date and (iii) that those representations
and warranties which by their terms are qualified by materiality shall be true and correct in all
respects. Sellers shall have performed and complied with all of their respective obligations
required by this Agreement to be performed or complied with at or prior to the Closing Date.
Sellers shall have delivered to the Buyer a certificate dated as of the Closing Date, and executed
by Sellers, certifying the foregoing.

     (b) The obligations of the Buyer to consummate the Acquisition shall be subject to the Buyer
obtaining a loan from a bank or other financial institution in an amount sufficient to permit the
Buyer to pay to Sellers the purchase price upon such other terms and conditions as shall be
satisfactory to the Buyer.

- 49 -

 

     7.2 Conditions to the Obligations of Sellers. The obligations of Sellers to
consummate the Acquisition shall be subject to the satisfaction or waiver at or prior to the
Closing Date of the condition that the representations and warranties of the Buyer contained in
this Agreement shall be true and correct in all material respects at and as of the Closing Date
with the same force and effect as though made at and as of that time except (i) for changes
specifically permitted by or disclosed pursuant to this Agreement, (ii) that those representations
and warranties which address matters only as of a particular date shall remain true and correct as
of such date and (iii) that those representations and warranties which by their terms are qualified
by materiality shall be true and correct in all respects. The Buyer shall have performed and
complied in with all of its obligations required by this Agreement to be performed or complied with
at or prior to the Closing Date. The Buyer shall have delivered to Sellers a certificate, dated as
of the Closing Date, and executed by an executive officer of the Buyer, certifying the foregoing.

     7.3 Conditions to Obligations of Buyer and Sellers. The respective obligations of the
Buyer and Sellers to consummate the Acquisition shall be subject to the satisfaction or waiver at
or prior to the Closing Date of the condition that at the Closing Date, there shall be no
injunction, restraining order or decree of any nature of any Governmental Authority that is in
effect that prohibits or materially restricts the consummation of the purchase by, or the transfer
by Sellers to Buyer of the Shares; provided, however, that the benefits of this Section 7.3
shall not be available to a Party whose failure to fulfill its obligations pursuant to Section
6.6 shall have been the cause of, or shall have resulted in, such injunction, restraining order
or decree.

     7.4 Frustration of Closing Conditions. Neither the Buyer nor Sellers may rely on the
failure of any condition set forth in Section 7.1(a), Section 7.2 or Section
7.3, as the case may be, to be satisfied if such failure was caused by such Party’s failure to
use commercially reasonable efforts to consummate the Acquisition, as required by and subject to
Section 6.6.

ARTICLE VIII

CLOSING

     8.1 Closing Date. Unless this Agreement shall have been terminated pursuant to
Article X hereof, the closing of the Acquisition (the “Closing”) shall take place at the
offices of Morgan, Lewis & Bockius LLP, 101 Park Avenue, New York, NY 10178, at 10:00 A.M., New
York time, on November 21, 2006, or such other date, time and place as shall be agreed upon by
Sellers and Buyer (the actual date and time being herein called the “Closing Date”).

     8.2 The Buyer’s Deliveries to Sellers. At the Closing, the Buyer shall deliver, or
caused to be delivered, to Sellers the following, in form and substance reasonably acceptable to
Sellers:

          (a) a copy of the certificate of incorporation and bylaws, partnership agreement or analogous
organizational document of Buyer, as amended, certified by the corporate secretary of Buyer;

- 50 -

 

          (b) a copy of the resolutions duly adopted by the Board of Directors of the Buyer evidencing
its authorization of the execution and delivery of this Agreement and the consummation of the
Acquisition, certified by the corporate secretary of the Buyer;

          (c) the Initial Payment in immediately available U.S. federal funds; and

          (d) a certificate or certificates of an officer of the Buyer (i) certifying the names and
signatures of the officers of the Buyer authorized to sign this Agreement and all other agreements
relating hereto and (ii) certifying those matters set forth in Section 7.2 above.

     8.3 Sellers’ Deliveries to the Buyer. At the Closing, Sellers shall deliver, or cause
to be delivered, to the Buyer the following, in form and substance reasonably acceptable to the
Buyer:

          (a) a copy of the certificate of incorporation and bylaws of MTC and each of its Subsidiaries
certified by the corporate secretary of such entity;

          (b) certificates evidencing the Shares properly endorsed or with stock powers executed in
blank or otherwise in form suitable for transfer to Buyer;

          (c) certificates of Good Standing as of a recent date with respect to MTC and each of MTC’s
Subsidiaries from the Secretary of State (or other appropriate governmental official) of the state
of its formation;

          (d) a certificate or certificates of the Sellers (i) certifying the names and signatures of
those Sellers who are individuals and of those persons who are authorized to sign on behalf of
those Sellers who are not individuals, this Agreement and all other agreements relating hereto and
(ii) certifying those matters set forth in Section 7.1 above;

          (e) a copy of the Charter Documents of each Seller that is a limited partnership or trust
certified by the general partner or trustee, as the case may be, of such entity;

          (f) a copy of the Charter Documents of each General Partner that is a limited liability
company certified by the managing member or board of managers, as the case may be, of such entity;
and

          (g) an opinion of counsel for the Sellers substantially in the form attached as Exhibit B.

ARTICLE IX

INDEMNIFICATION

     9.1 Agreement to Indemnify.

          (a) Subject to the limitations provided herein, Sellers shall jointly and severally indemnify
and hold harmless the Buyer and its Affiliates (collectively, the “Buyer Indemnitees”) to the
extent set forth in this Article IX in respect of any Losses reasonably and

- 51 -

 

proximately incurred by Buyer Indemnitees as a result of (i) any inaccuracy or
misrepresentation in any representation or warranty of MTC or Sellers made herein or any breach of
or failure to perform any covenant, agreement or obligation of MTC or Sellers in this Agreement or
any agreement, document or certificate delivered hereunder; provided, however, that Sellers shall
have no liability on account of this Section 9.1(a)(i) with respect to any claim relating
to any events, facts or circumstances of which the Buyer had Knowledge on or before the Closing
Date (except in the case of any claim relating to any Taxes in which case Sellers shall have
liability on account of this Section 9.1(a)(i) whether or not Buyer has Knowledge of any
events, facts or circumstances with respect to such claim); (ii) any federal or state income Taxes
incurred by MTC or its Subsidiaries caused by or resulting from the sale of the Shares, except to
the extent such Taxes are accrued as a liability for purposes of calculating either the Closing
Working Capital Value or Net Income Tax Liabilities as of the Closing Date; (iii) any Taxes imposed
on or relating to MTC or any of its Subsidiaries for any Pre-Closing Period, except to the extent
such Taxes are accrued as a liability for purposes of calculating either the Closing Working
Capital Value or Net Income Tax Liabilities as of the Closing Date, and (iv) any Liabilities of MTC
unrelated to its ownership of Oxy-Dry.

          (b) Notwithstanding the foregoing paragraph (a):

     (i) Sellers shall not be liable under Section 9.1(a)(i) for any Losses
in respect of any claim (or group of directly related claims) subject to Section
9.1(a)(i) until all Losses in respect of all claims exceed One Hundred Thousand
Dollars ($100,000) in the aggregate (the “Minimum Amount”), and thereafter Sellers
shall be liable, subject to the other limitations provided for elsewhere in this
Agreement, for all Losses in excess of the Minimum Amount;

     (ii) The aggregate liability of Sellers for all Losses under this Agreement and
any agreement, document or certificate delivered herewith and the Acquisition shall
not exceed Two Million Dollars ($2,000,000) (the “Maximum Amount”), provided
however, that the liability of Sellers for Taxes, and for liabilities of MTC
unrelated to its ownership of Oxy-Dry and for fraud shall be unlimited; and

     (iii) Sellers shall have no liability to indemnify any Buyer Indemnitee for any
Losses (other than in respect of Taxes, any Liabilities of MTC unrelated to its
ownership of Oxy-Dry or fraud) (A) related to any liability that is specifically set
forth (i) in the calculation of Closing Working Capital Value or (ii) on the
Financial Statements or the Reference Purchase Price Statement, (B) under Section
9.1(a)(i), if the Buyer had Knowledge that the representations and warranties of MTC
or Sellers in this Agreement were not true and correct prior to the Closing, to the
extent arising as a result of any action taken or omitted to be taken by Buyer or
any of its Affiliates, (C) under Section 9.1(a)(i), in respect of a breach of any
representations and warranties, to the extent disclosed in the Seller Disclosure
Schedule, (D) to the extent arising from a change in Law that becomes effective
after the Closing Date or (E) arising or resulting from any action taken or omitted
to be taken by the Buyer or any of its Affiliates after the Closing Date other than
as contemplated or permitted by this Agreement.

- 52 -

 

          (c) Buyer shall indemnify and hold harmless Sellers and their respective Affiliates
(collectively the “Seller Indemnitees” and, together with the Buyer Indemnitees, the “Indemnitees”)
to the extent set forth in this Article IX in respect of any and all Losses reasonably and
proximately incurred by any Seller Indemnitee: (i) as a result of any inaccuracy or
misrepresentation in any representation or warranty of the Buyer made herein or any breach of or
failure to perform any covenant, agreement or obligation of the Buyer in this Agreement or any
agreement, document or certificate delivered hereunder; or (ii) as a result of liabilities of MTC
and its Subsidiaries, including liabilities arising from matters, facts and circumstances set forth
in the Seller Disclosure Schedule to Article IV hereof, other than (x) Tax liabilities of
MTC or any of its Subsidiaries arising from any Pre-Closing Period, (y) liabilities of MTC
unrelated to its ownership of Oxy-Dry or (z) liabilities in respect of which Sellers are obligated
to indemnify and hold harmless Buyer Indemnitees pursuant to Section 9.1(a).

          (d) Notwithstanding the foregoing paragraph (c):

     (i) Buyer shall not be liable under Section 9.1(c)(i) for any Losses in
respect of any claim (or group of directly related claims) subject to Section
9.1(c)(i) until all Losses in respect of all claims exceed One Hundred Thousand
Dollars ($100,000) in the aggregate (the “Minimum Amount”), and thereafter Buyer
shall be liable, subject to the other limitations provided for elsewhere in this
Agreement, for all Losses in excess of the Minimum Amount; and

     (ii) The aggregate liability of Buyer for all Losses under this Agreement and
any agreement, document or certificate delivered herewith and the Acquisition shall
not exceed Two Million Dollars ($2,000,000) (the “Maximum Amount”); provided
however, that the liability of Buyer for fraud shall be unlimited.

     9.2 Survival of Representations and Warranties. All representations and warranties
shall survive the Closing and expire on the eighteen month anniversary of the Closing Date;
provided, however, all representations and warranties of Sellers made pursuant to Section
4.10 (Taxes) and Section 4.22 (Environmental) shall survive the Closing for a period
continuing until thirty (30) days following the expiration of the applicable statute of
limitations, as extended, and all representations and warranties of Sellers made pursuant to
Sections 4.1 (Organization and Good Standing), 4.2 (Capitalization; Stock
Ownership), 4.3 (Subsidiaries of MTC), 4.4 (Authority and Enforceability) and
4.5 (No Conflicts; Authorizations) shall survive the Closing indefinitely. Each covenant,
agreement and obligation of the Parties hereto shall survive the Closing and expire on the first
anniversary of the date on which such covenant, agreement or obligation was to be performed, unless
a different term is expressly specified. Any cause of action for breach of a representation or
warranty, covenant, agreement or obligation contained herein shall expire and terminate, unless the
Party claiming that such breach occurred delivers to the other Party written notice and a
reasonably detailed explanation of the alleged breach on or before 5:00 P.M., Chicago time, on the
date on which such representation or warranty, covenant, agreement or obligation expires pursuant
to this Section 9.2. If any claim for indemnification or other recovery is timely asserted
pursuant to this Section 9.2, the Indemnitee shall have the right to bring an Action with
respect to such claim within one (1) year after first giving the Indemnifying Party notice thereof,
but may not bring any such Action thereafter.

- 53 -

 

     9.3 Notice of Claims for Indemnification. If any Indemnitee shall believe that such
Indemnitee is entitled to indemnification pursuant to Section 9.1 in respect of any Losses,
such Indemnitee shall give the appropriate indemnifying Party (the “Indemnifying Party”) written
notice within ten (10) Business Days of its becoming aware thereof, which notice shall specify in
reasonably sufficient detail the facts alleged to have been breached and the amount the Indemnitee
seeks hereunder from Indemnifying Party, together with such information as may be necessary for the
Indemnitee to determine the limitations in Section 9.1(b)(i) have been satisfied; provided,
however, the failure to give such notice shall not release the Indemnifying Party from its
obligations under this Article IX, except to the extent that the Indemnifying Party is
prejudiced by such failure. If the Indemnifying Party contests the assertion of a claim, the
Parties covenant and agree to use their commercially reasonable efforts to resolve their dispute
with respect to such claim.

     9.4 Defense of Claims. In connection with any claim for which indemnification has
been sought under this Article IX resulting from or arising out of any claim or Action
against an Indemnitee by a Person that is not a Party hereto (a “Third Party Claim”), the
Indemnifying Party may assume the defense of any such claim or Action (unless such Indemnitee
elects not to seek indemnity hereunder for such claim), upon written notice to the relevant
Indemnitee. If the Indemnifying Parties shall have assumed the defense of any claim or Action in
accordance with this Section 9.4, the Indemnifying Parties shall be authorized to consent
to a settlement of, or the entry of any judgment arising from, any such claim or Action, without
the prior written consent of such Indemnitee; provided, however, that the Indemnifying Parties
shall pay or cause to be paid all amounts arising out of such settlement or judgment concurrently
with the effectiveness thereof (less any unapplied portion of the Minimum Amount and up to the
Maximum Amount); provided, further, that the Indemnifying Parties shall not be authorized to
encumber any of the assets of any Indemnitee or to agree to any restriction that would apply to any
Indemnitee or to its conduct of business; and provided, further, that a condition to any such
settlement shall be a complete release of such Indemnitee and its Affiliates, officers, employees,
consultants and agents with respect to such claim. Each Indemnitee shall be entitled to
participate in (but not control) the defense of any such action, with its own counsel and at its
own expense. Each Indemnitee shall, and shall cause each of its Affiliates, officers, employees,
consultants and agents to, cooperate fully with the Indemnifying Parties in the defense of any
claim or Action being defended by the Indemnifying Parties pursuant to this Section 9.4.
If the Indemnifying Parties do not assume the defense of any claim or Action resulting therefrom in
accordance with the terms of this Section 9.4, such Indemnitee must defend against such
claim or Action. The Indemnitee shall not pay, or permit to be paid, any part of the Third Party
Claim unless the Indemnifying Parties consent in writing to such payment, such consent not to be
unreasonably withheld or delayed, or unless a final judgment from which no appeal may be taken by
or on behalf of the Indemnifying Party is entered against the Indemnitee for such Third Party
Claim. If the Indemnitee controls the defense of any such claim or Action in accordance with this
Section 9.4 and proposes to settle any such claim or Actions prior to a final judgment
thereon or to forego any appeal with respect thereto, then the Indemnitee shall give the
Indemnifying Party prompt written notice thereof and the Indemnifying Party shall have the right to
participate in the settlement or assume or reassume the defense of such claim or Action.

     9.5 Settlement or Compromise. Any settlement or compromise made or caused to be made
by the Indemnitee (unless the Indemnifying Person has the exclusive right to settle or

- 54 -

 

compromise under Section 9.4) or the Indemnifying Person, as the case may be, of any
such claim or Action of the kind referred to in Section 9.4 shall also be binding upon the
Indemnifying Person or the Indemnitee, as the case may be, in the same manner as if a final
judgment or decree had been entered by a court of competent jurisdiction in the amount of such
settlement or compromise; provided, that (i) no obligation, restriction or Loss shall be imposed on
the Indemnitee as a result of such settlement or compromise without its prior written consent,
which consent shall not be unreasonably withheld, and (ii) the Indemnitee will not compromise or
settle any claim or Action without the prior written consent of the Indemnifying Person, which
consent shall not be unreasonably withheld.

     9.6 Subrogation. To the extent that any Indemnifying Party discharges any claim for
indemnification hereunder, such Indemnifying Party shall be subrogated to all rights of any
Indemnitee against third parties, including all rights relating to claims under any insurance,
contracts, common law or otherwise. Such Indemnitee (and its Affiliates) and Indemnifying Party
will execute upon request all instruments reasonably necessary to evidence or further protect such
subrogation rights.

     9.7 Knowledge. Notwithstanding anything contained herein to the contrary, no Party
shall have (a) any liability under Section 9.1(a)(i) or Section 9.1(c)(i) for any
breach of or inaccuracy in any representation or warranty by such Party, if the other Party (i) had
Knowledge at or before the Closing of the facts as a result of which such representation or
warranty was breached or inaccurate or (ii) was provided access to, at or before the Closing, a
document disclosing such facts (except in the case of a breach of or inaccuracy in a representation
or warranty by Sellers relating to any Taxes, in which case Sellers shall have liability under
Section 9.1(a)(i) whether or not Buyer (x) had Knowledge at or before the Closing of the
facts as a result of which such representation or warranty was breached or inaccurate or (y) was
provided access to, at or before the Closing, a document disclosing such facts) or (b) any
liability after the Closing for any breach of or failure to perform before the Closing any covenant
or obligation of such Party if the other Party or any of its Affiliates or any of their respective
officers, employees, counsel or other representatives (i) had Knowledge at or before the Closing of
such breach or failure or (ii) was provided access to, at or before the Closing, a document
disclosing such breach or failure (except in the case of a breach or failure by Sellers relating to
any Taxes, in which case Sellers shall have liability whether or not Buyer (x) had Knowledge at or
before the Closing of such breach or failure or (y) was provided access to, at or before the
Closing, a document disclosing such breach or failure).

     9.8 Post-Closing Actions. Sellers shall not be required to indemnify Buyer
Indemnified Parties pursuant to Section 9.1(a) or otherwise for any liability under any
Environmental Law as a result of any Buyer Party’s or, following the Closing MTC’s or any of its
Subsidiary’s unsolicited voluntary action, including, but not limited to, intrusive site
investigations or contacts with or disclosures to a Governmental Authority or other Person. None
of the Buyer shall voluntarily solicit or request any Governmental Authority or other Person to
make a claim with the purpose of triggering the indemnity provisions of this Agreement.

     9.9 Indemnification Calculations. The amount of any Losses for which indemnification
is provided under this Article IX shall be computed net of any insurance

- 55 -

 

proceeds, Tax benefits or other recoveries available to any Indemnitee in connection with such
Losses. Each Indemnitee shall exercise commercially reasonable efforts to obtain such proceeds,
benefits and recoveries. If any such proceeds, benefits or recoveries are received by an
Indemnitee (or any of its Affiliates) with respect to any Losses after an Indemnifying Party has
made a payment to the Indemnitee with respect thereto, the Indemnitee (or such Affiliate) shall
promptly pay to the Indemnifying Party the amount of such proceeds, benefits or recoveries (up to
the amount of the Indemnifying Party’s payment).

     9.10 Tax Treatment. The Parties agree that any indemnification payments made pursuant
to this Agreement shall be treated for tax purposes, as between Buyer and Sellers, as an adjustment
to the Purchase Price, unless otherwise required by applicable Law or Governmental Authority
interpretations thereof.

     9.11 Exclusive Remedy. Except in the case of fraud or as set forth in Section
11.8, to the extent that the Buyer or any of its Affiliates has any Losses for which it may
assert any other right to indemnification, contribution or recovery from Sellers or any of their
respective Affiliates (whether under this Agreement or under any common law theory or any statute
or other Law), the Buyer hereby waives, releases and agrees not to assert such right, and the Buyer
agrees to cause each of its Affiliates to waive, release and agree not to assert such right,
regardless of the theory upon which any claim may be based, whether contract, equity, tort,
warranty, strict liability or any other theory of liability. Except in the case of fraud or as
otherwise specifically provided in this Agreement, the indemnification provisions in Article
IX of this Agreement shall provide the sole and exclusive remedy of the Parties hereto, their
Affiliates, and any of their officers, directors, employees, stockholders, agents and
representatives with respect to any and all Losses of any kind or nature whatever incurred because
of or resulting from or arising out of this Agreement, any agreement, document or certificate
delivered herewith or therewith, the Acquisition, the Business, MTC and its Subsidiaries and any of
their assets and liabilities (other than Losses to the extent resulting from the failure of the
Buyer to complete the Acquisition other than for reasons permitted by the Agreement). In
furtherance of the foregoing, each Party hereby waives (and agrees not to bring any Action in
respect of), on its own behalf and on behalf of its Affiliates and of any of their officers,
directors, employees, stockholders, agents and representatives, to the fullest extent permitted
under applicable Law, any and all rights, claims and causes of action any of them may now or
hereafter have against the other Party and its Affiliates and their officers, directors, employees,
stockholders, agents and representatives, arising under or based upon any Law (including any such
rights, claims or causes of action relating to CERCLA or any other Environmental Law or arising
under or based upon common law) or otherwise (except pursuant to Section 6.11, 6.12
or Article IX of this Agreement).

ARTICLE X

TERMINATION

     10.1 Termination Events. Without prejudice to other remedies which may be available
to the Parties by Law or this Agreement, this Agreement may be terminated and the Acquisition may
be abandoned prior to Closing:

- 56 -

 

          (a) by mutual written consent of the Parties hereto;

          (b) by Buyer or MTC, by written notice to the other if:

     (i) the Closing shall not have been consummated on or before the Termination
Date, unless extended by written agreement of the Parties hereto; provided, however,
that the right to terminate this Agreement under this Section 10.1(b) shall
not be available to any Party whose failure to perform or comply with any of its
obligations under this Agreement shall have been the cause of, or shall have
resulted in, the failure of the Closing to occur by such date; or

     (ii) any Governmental Authority shall have enacted, promulgated, issued,
entered or enforced (A) any Law prohibiting the Acquisition or making them illegal,
or (B) any injunction, judgment, order or ruling or taking any other action, in each
case, permanently enjoining, restraining or prohibiting the Acquisition, which shall
have become final and nonappealable.

          (c) by Buyer:

     (i) if the condition set forth in Section 7.1 shall have become
incapable of fulfillment; or

     (ii) if all of the conditions set forth in Article VII shall have been
satisfied and Sellers shall not have made all of the deliveries required by
Section 8.3 on or before ten (10) days following the date designated for
Closing pursuant to Section 8.1; or

          (d) by Sellers:

     (i) if the condition set forth in Section 7.2 shall have become
incapable of fulfillment; or

     (ii) if all of the conditions set forth in Article VII shall have been
satisfied and (i) the Buyer shall not have made all of the deliveries required by
Sections 8.2 on or before ten (10) days following the date designated for
Closing pursuant to Section 8.1.

     10.2 Effect of Termination. In the event of any termination of the Agreement as
provided in Section 10.1 above, then all further obligations of the Parties under this
Agreement shall terminate without further liability on the part of any Party to the others, other
than (a) with respect to the obligations of the Buyer and Sellers under the Confidentiality Letter
and Sections 6.7, 10.2, 10.3 and 11.3 of this Agreement and (b)
except as to liability for any willful or fraudulent misrepresentation, breach or default in
connection with any warranty, representation, covenant or obligation given, occurring or arising
pursuant to this Agreement prior to the date of termination.

     10.3 Failure to Close. If all of the conditions set forth in Sections 7.1 and
7.3 to the obligations of Buyer to consummate the Acquisition (other than the condition
that Buyer shall

- 57 -

 

have obtained the financing referred to in Section 7.1(b)) have been satisfied or
waived and Buyer fails to consummate the Acquisition by November 30, 2006, the Buyer shall pay to
Sellers as liquidated damages One Million Five Hundred Thousand Dollars ($1,500,000), by wire
transfer of immediately available funds within five business days following such failure by Buyer
to consummate the Acquisition. Buyer shall have no other liability or obligation to Sellers
because of the failure by Buyer to consummate the Acquisition.

ARTICLE XI

MISCELLANEOUS AGREEMENTS OF THE PARTIES

     11.1 Notices. All communications provided for hereunder shall be in writing and shall
be deemed to be given when delivered in person or by private courier with receipt, when telefaxed
and received (if the telefax is confirmed by next day receipted courier), and,

If to the Buyer:

Baldwin Technology Company, Inc.

2 Trap Falls Road

Suite 402

Shelton, CT 06484

Attention: Gerald A. Nathe

               Chairman of the Board

Fax: 203-402-5500

with a copy to:

Samuel B. Fortenbaugh III

1211 Avenue of the Americas, 27th Floor

New York, NY 10036

Fax: 212-596-3391

If to Sellers:

Mary Ellen Cahill

21 Heather Lane

Basking Ridge, NJ 07920

Fax: 908-672-3309

and

Edward T. McLoughlin

20620 North Meadow Lane

Barrington, IL 60010

Fax: 847-381-7466

with a copy to:

McDermott Will & Emery LLP

227 West Monroe Street

- 58 -

 

Chicago, IL 60606

Attention: Robert A. Schreck

Fax: 312-984-7700

     or to such other address as any such Party shall designate by written notice to the other
Parties hereto.

     11.2 Expenses. Subject to Section 3.2(b) and Section 6.13, the
Sellers and the Buyer shall each pay their respective expenses (such as legal, investment banker
and accounting fees) incurred in connection with the origination, negotiation, execution and
performance of this Agreement.

     11.3 Non-Assignability. This Agreement shall inure to the benefit of and be binding
on the Parties hereto and their respective successors and permitted assigns. This Agreement shall
not be assigned by operation of Law or otherwise by any Party hereto without the express prior
written consent of the other Parties, and any attempted assignment, without such consents, shall be
null and void. Notwithstanding the foregoing provisions of this Section 11.3, the Buyer
shall be permitted to collaterally assign its rights (and related remedies) under this Agreement
(and related agreements and instruments) to its lenders from time to time (or their agent(s));
provided that the Buyer nonetheless shall remain responsible for the performance of all of its
obligations hereunder (and thereunder).

     11.4 Amendment; Waiver. This Agreement may be amended, supplemented or otherwise
modified only by a written instrument executed by the Parties hereto. No waiver by any Party of
any of the provisions hereof shall be effective unless explicitly set forth in writing and executed
by the Party so waiving. The waiver by any Party hereto of any condition to this Agreement or
breach of any provision of this Agreement shall not operate or be construed as a waiver of any
other condition of this Agreement or subsequent breach.

     11.5 Third Parties. Except for the rights provided in Sections 9.1, this
Agreement does not create any rights, claims or benefits inuring to any Person that is not a Party
hereto nor create or establish any third party beneficiary hereto; provided that nothing contained
in this Section 11.5 shall, or be interpreted to, limit the provisions with respect to the
collateral assignment of this Agreement by the Buyer pursuant to Section 11.3.

     11.6 Currency. All references to currency, monetary values and dollars set forth
herein shall mean U.S. dollars and all payments hereunder shall be made in U.S. dollars.

     11.7 Governing Law; Submission to Jurisdiction; Waivers. This Agreement and each
other document delivered pursuant to this Agreement shall be governed by, and construed in
accordance with, the Laws of the State of Illinois. Each of the Parties agrees that if any dispute
shall be resolved is not resolved by the Parties, it shall be resolved only in the courts of the
State of Illinois sitting in the County of Illinois or the United States District Court for the
Northern District of Illinois and the appellate courts having jurisdiction of appeals in such
courts (collectively, the “Proper Courts”). In that context, and without limiting the generality
of the foregoing, each of the Parties irrevocably and unconditionally (a) submits for itself and
its property in any action relating to this Agreement or any document delivered pursuant to this

- 59 -

 

Agreement or for recognition and enforcement of any judgment in respect thereof, to the
exclusive jurisdiction of the courts, and agrees that all claims in respect of any such action
shall be heard and determined in such Illinois state court or, to the extent permitted by law, in
such federal court; (b) consents that any such action may and shall be brought in such Proper Court
and waives any objection that it may now or thereafter have to the venue or jurisdiction of any
such action in any such Proper Court or that such action was brought in an inconvenient court and
agrees not to plead or claim the same; (c) waives all right to trial by jury in any action (whether
based on contract, tort or otherwise) arising out of or relating to this Agreement or any document
delivered pursuant to this Agreement, or its performance under or the enforcement of this Agreement
or any document delivered pursuant to this Agreement; (d) agrees that service of process in any
such action may be effected by mailing a copy of such process by registered or certified mail (or
any substantially similar form of mail), postage prepaid, to such Party at its address as provided
in Section 11.1; and (e) agrees that nothing in this Agreement or any document delivered
pursuant to this Agreement shall affect the right to effect service of process in any other manner
permitted by the Laws of the State of Illinois.

     11.8 Specific Performance. The Parties agree that irreparable damage would occur in
the event that any of the provisions of this Agreement were not performed in accordance with their
specific terms or were otherwise breached. The parties hereto agree and acknowledge that, in the
event of a breach of any provision of this Agreement, the aggrieved party may be without an
adequate remedy at law. The parties therefore agree that in the event of a breach of any provision
of this Agreement the aggrieved party may elect to institute and prosecute any Action exclusively
in the Proper Court to obtain specific performance or to enjoin the continuing breach of such
provision, as well as to obtain damages for breach of this Agreement and to obtain reasonable
attorneys’ fees, without bond or other security being required. By seeking or obtaining any such
relief, the aggrieved party will not be precluded from seeking or obtaining any other relief to
which it may be entitled at law or in equity.

     11.9 Entire Agreement. This Agreement, the Seller Disclosure Schedule and Exhibits
and agreements referred to herein (including the Confidentiality Letter) set forth the entire
understanding of the Parties hereto as to matters not expressly excepted or excluded herefrom.

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

          (a) 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;

          (b) the table of contents and headings for this Agreement are for reference purposes only, are
for convenience only and not deemed to be a part of this Agreement and do not affect in any way the
meaning or interpretation of this Agreement;

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

- 60 -

 

          (d) 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;

          (e) 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;

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

          (g) reference to any agreement (including this Agreement), document or instrument means such
agreement, document or instrument as amended or modified and in effect from time to time in
accordance with the terms thereof, and, if applicable, the terms hereof;

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

          (i) reference to a Person in a particular capacity excludes such Person in any other capacity
or individually;

          (j) the use of “or” is not intended to be exclusive, unless expressly indicated otherwise; and

          (k) when a reference is made in this Agreement to a U.S. Law concept or a U.S. Governmental
Authority, such reference shall be deemed and interpreted as a reference to a corresponding concept
or authority or semi-public administrative body under a corresponding foreign jurisdiction Law in
those cases in which the reference relates to a Person falling under such foreign jurisdiction and
in which such interpretation is required to economically approximate the intention of this
Agreement, and such interpretation shall be made in line with the respective foreign Law, including
those cases in which an explicit reference is made in this Agreement to a specific foreign Law in
italics.

     11.11 Severability. If any provision of this Agreement shall be declared by any court
of competent jurisdiction to be illegal, void or unenforceable, all other provisions of this
Agreement shall not be affected and shall remain in full force and effect. 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 to the fullest extent permitted by applicable Law in an
acceptable manner to the end that the Acquisition are fulfilled to the extent possible. With
respect to any provision of this Agreement finally determined by a court of competent jurisdiction
to be unenforceable, the Buyer and Sellers hereby agree that such court shall have jurisdiction to
reform such provision so that it is enforceable to the maximum extent permitted by Law, and the
parties agree to abide by such court’s determination. If any such provision of this Agreement
cannot be reformed, such provision shall be deemed to be severed from this Agreement, but every
other provision of this Agreement shall remain in full force and effect.

     11.12 Schedules. Neither the specification of any dollar amount or any item or matter
in any provision of this Agreement or any agreement, document or instrument entered into or

- 61 -

 

delivered in connection with the Acquisition (the “Ancillary Agreements”) nor the inclusion of
any specific item or matter in the Seller Disclosure Schedule or any schedule to any Ancillary
Agreement is intended to imply that such amount, or higher or lower amounts, or the item or matter
so specified or included, or other items or matters, are or are not material, shall not be employed
as a point of reference in determining any standard of materiality under this Agreement and no
Party shall use the fact of the specification of any such amount or the specification or inclusion
of any such item or matter in any dispute or controversy between the Parties as to whether any item
or matter is or is not material for purposes of this Agreement or any Ancillary Agreement. Neither
the specification of any item or matter in any provision of this Agreement or any Ancillary
Agreement nor the inclusion of any specific item or matter in the Seller Disclosure Schedule or any
schedule to any Ancillary Agreement is intended to imply that such item or matter, or other items
or matters, are or are not in the ordinary course of business and no party shall use the fact or
the specification or the inclusion of any such item or matter in any dispute or controversy between
the parties as to whether any item or matter is or is not in the ordinary course of business for
purposes of this Agreement or any Ancillary Agreement.

     11.13 Language. Sellers and the Buyer agree that the language used in this Agreement
is the language chosen by the parties to express their mutual intent, and that no rule of strict
construction is to be applied against the Sellers or the Buyer. Each of Sellers and the Buyer and
their respective counsel have reviewed and negotiated the terms of this Agreement.

     11.14 Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original and all of which together shall be deemed to be one
and the same instrument.

- 62 -

 

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

	 	 	 	 	 	 	 
	SELLERS:	 	BUYER:
	 
	 	 	 	 	 	 
	EDWARD MCLOUGHLIN GRANTOR TRUST	 	BALDWIN TECHNOLOGY COMPANY, INC.
	 
	 	 	 	 	 	 
	By:

	 	/s/ Robert Krahl	 	By:	 	/s/ Gerald A. Nathe
	 

	 	 
	 	 	 	 
	 

	 	Robert Krahl, Trustee
	 	 	 	Gerald A. Nathe,
	 

	 	 	 	 	 	Chairman of the Board
	 
	 	 	 	 	 	 
	 

	 	/s/ Edward T. McLoughlin	 	 	 	 
	 	 	 	 	 
	 	Edward T. McLoughlin	 	 	 

	 	 	 	 	 
	STEM, LP	 	 
	By:

	 	McLoughlin Management, LLC
	 	 
	 

	 	General Partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Edward T. McLoughlin	 	 
	 

	 	 	 	 

Edward T. McLoughlin, Manager
	 	 
	 
	 	 	 	 	 	 

	 	 	 	 	 
	PINE HARBOUR PARTNERS, LP	 	 
	By:

	 	Cahill Management LLC
	 	 
	 

	 	General Partner	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Mary Ellen Cahill	 	 
	 

	 	 	 	 

Mary Ellen Cahill, Manager
	 	 
	 
	 	 	 	 	 	 
	 

	/s/ Mary Ellen Cahill

	 
	 	 	 
	 

	 	 	 	Mary Ellen Cahill	 	 

MARY ELLEN CAHILL FAMILY 2006

IRREVOCABLE TRUST

	 	 	 	 	 
	By:
	 	/s/ Colleen Joyce	 	 
	 

	 	 

Colleen Joyce, Trustee
	 	 

Signature Page to Amended and Restated Stock Purchase Agreement

 

 

Exhibit A

SHARE OWNERSHIP OF MTC

	 	 	 	 	 
	                  Shareholder	 	Common Shares
	Edward T. McLoughlin
	 	 	29,625	 
	Mary Ellen Cahill
	 	 	37,367	 
	STEM LP
	 	 	45,245	 
	Edward McLoughlin Grantor Trust
	 	 	539	 
	Mary Ellen Cahill 2006 Irrevocable Trust
	 	 	337	 
	Pine Harbour Partners
	 	 	37,705	 

 

 

Exhibit B

Form of MW&E Opinion

November __, 2006

Baldwin Technology Company, Inc.

2 Trap Falls Road

Suite 402

Shelton, CT 06484

Ladies and Gentlemen:

We have acted as special counsel to Edward T. McLoughlin of Barrington, Illinois (“Mr. McLoughlin”)
STEM Limited Partnership, an Illinois limited partnership (“STEM”), the Edward McLoughlin Grantor
Trust (the “Grantor Trust”), Mary Ellen Cahill of Somerset, New Jersey (“Mrs. Cahill”), Pine
Harbour Partners, LP, a Delaware limited partnership (“Pine Harbours”), and the Mary Ellen Cahill
Family 2006 Irrevocable Trust (the “Family Trust”, and with Mr. McLoughlin, STEM, the Grantor
Trust, Mrs. Cahill and Pine Harbours, individually, a “Seller” and collectively, the “Sellers”), in
connection with the Stock Purchase Agreement, dated as of October 4, 2006 (the “Agreement”),
between Baldwin Technology Company, Inc., a Delaware corporation (the “Buyer”) and the Sellers,
governing the sale by the Sellers of common stock in MTC Trading Company, an Arizona corporation
(“MTC”), to the Buyer. This opinion is being delivered pursuant to Section 8.3(g) of the
Agreement. Capitalized terms used herein and not otherwise defined herein shall have the same
meanings ascribed to them in the Agreement.

In our examination we have assumed the genuineness of all signatures, the legal capacity of natural
persons, the authenticity of all documents submitted to us as originals, the conformity to original
documents of all documents submitted to us as certified or photostatic copies, and the authenticity
of the originals of such copies. As to any facts material to this opinion which we did not
independently establish or verify, we have relied upon statements and representations of the
Sellers or MTC and its officers and other representatives and of public officials, including the
facts set forth in the Certificates described below.

In rendering opinions set forth herein, we have examined and relied upon originals or copies of the
following:

(a) the Agreement;

(b) certificate of Mr. McLoughlin, dated the date hereof, a copy of which is attached as Exhibit A
hereto;

(c) the certificate of Mrs. Cahill, dated the date hereof, a copy of which is attached as Exhibit B
hereto;

 

 

(d) copies of the Articles of Organization of the general partner of each of STEM and Pine Harbour;
and

(e) certificates from public officials in the states of Arizona, Delaware and Illinois as to the
good standing of MTC and the general partner of each of STEM and Pine Harbour in each such
jurisdiction.

References to (i) “Applicable Laws” shall mean those laws, rules and regulations of the State of
Illinois and of the United States of America which, in our experience, are normally applicable to
transactions of the type contemplated by the Agreement; and (ii) the term “Governmental
Authorities” means any Illinois or federal, executive, legislative, judicial, administrative or
regulatory body.

Whenever our opinion with respect to the existence or absence of facts is indicated to be based on
our knowledge or awareness, we are referring solely to the actual knowledge of the particular
McDermott Will & Emery LLP attorneys who have represented the Sellers in connection with the
Agreement. Except as expressly set forth herein, we have not undertaken any independent
investigation, including any docket or other search of pending litigation, to determine the
existence or absence of such facts and no inference as to our knowledge concerning such facts
should be drawn from the fact that such representation has been undertaken by us.

We are admitted to the Bar in the State of Illinois. We express no opinion as to the laws of any
jurisdiction other than (i) the laws of the State of Illinois, (ii) the Limited Liability Company
Act and the Revised Uniform Limited Partnership Act of the State of Delaware, (iii) the federal
laws of the United States of America to the extent specifically referred to herein, and (iv) based
solely on the certificates of public officials previously identified, the laws of Arizona with
respect to our opinion with respect to MTC’s existence and good standing as a corporation in the
State of Arizona. With respect to our opinion in the paragraph numbered 2 below with respect to
MTC, we have assumed that the laws of the State of Arizona are the same as those of the State of
Illinois.

In rendering this opinion, we have assumed, with your consent, that:

(a) The Agreement has been duly authorized, executed and delivered by the Buyer;

(b) the execution, delivery and performance of any of its obligations under the Agreement does not
and will not conflict with, contravene, violate or constitute a default under (i) any lease,
indenture, instrument or other agreement to which a Seller or MTC is subject, (ii) any rule, law or
regulation to which a Seller or MTC is subject (other than Applicable Laws as to which we express
our opinion in paragraph 8 herein) or (iii) any judicial or administrative order or decree of any
governmental authority; and

(c) no authorization, consent or other approval of, notice to or filing with any court,
governmental authority or regulatory body is required to authorize or is required in connection
with the execution, delivery or performance by the Sellers of the Agreement or the transactions
contemplated thereby; and

 

 

(d) the Agreement constitutes the legal, valid and binding obligation of each party thereto other
than the Sellers enforceable against such parties (other than the Sellers) in accordance with their
terms.

In rendering our opinions expressed below, we express no opinion as to the applicability or effect
of (i) any fraudulent transfer or similar law on the Agreement or any transactions contemplated
thereby or (ii) any preference or similar law on the Agreement or any transaction contemplated
thereby.

Based upon the foregoing, and in reliance thereon, and subject to the qualifications, assumptions
and exceptions heretofore and hereinafter set forth, we are of the opinion that:

     1. Each of MTC and its domestic Subsidiaries is a corporation validly existing and in good
standing under the laws of the state of its incorporation;

     2. Each of MTC and its domestic Subsidiaries has all requisite corporate power and authority
to own, lease and otherwise hold and operate its properties and assets, and to conduct its business
as presently conducted;

     3. Each Seller has power and authority to execute and deliver the Agreement and to perform its
obligations thereunder;

     4. The execution, delivery and performance of the Agreement by each Seller that is a trust or
limited partnership, and the consummation by such Seller of the transactions contemplated thereby,
have been duly authorized by all requisite action on the part of such Seller (including in the case
of such Seller which is a limited partnership requisite action on the part of the limited liability
company acting as its general partner) necessary to authorize the execution, delivery and
performance by such Seller of the Agreement;

     5. The Agreement constitutes the legal, valid and binding obligation of each Seller,
enforceable against it in accordance with its terms, subject to the following qualifications;

(a) enforcement may be limited by applicable bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or other similar laws affecting creditors’ rights generally and by
general principles of equity (regardless of whether enforcement is sought in equity or at law),
including, without limitation, concepts of materiality, reasonableness, unconscionability, good
faith and fair dealing;

(b) we express no opinion as to: the enforceability of any rights to contribution or
indemnification provided for in the Agreement which are violative of the public policy underlying
any law, rule or regulation (including any federal or state securities law, rule or regulation) or
which are determined by a court or other tribunal to be in an unreasonable amount or to constitute
a penalty;

(c) we express no opinion with respect to the enforceability of (i) the provisions of the Agreement
to the extent that they provide that provisions of the Agreement may only be waived in writing,
(ii) the provisions of the Agreement to the extent that any recovery of attorneys’ fees is not
limited to reasonable attorneys’ fees, (iii) the provisions of the Agreement to the extent

 

 

they state that the provisions are severable, (iv) the agreements of the Sellers to indemnify
against costs or expenses or liability notwithstanding acts of gross negligence or willful
misconduct, and (v) the provisions of the Agreement regarding submission to the jurisdiction or
venue of a particular court, the waiver of the right to jury trial, or service of process, and/or
choice of law;

(d) we express no opinion with respect to the enforceability of (i) the ordinances and statutes,
the administrative decisions and orders and the rules and regulations of any municipality, county
or special district or other political subdivision of Illinois, and (ii) any of the waivers or
remedies contained in the Agreement, if such waivers or remedies are determined not to be
commercially reasonable; and

(e) certain of the provisions contained in the Agreement may be limited or rendered unenforceable
by applicable laws or judicial decisions governing such provisions or holding their enforcement to
be unreasonable under the then-existing circumstances.

     6. To our knowledge, no action, suit, investigation or proceeding is pending or threatened
against MTC or any Seller before any Governmental Authority which seeks to restrain, enjoin,
prevent the consummation of, or otherwise challenges any of the transactions contemplated by the
Agreement;

     7. The execution, delivery and performance of the Agreement by each Seller which is a trust or
limited partnership, and the consummation by such Seller of the transactions contemplated thereby,
do not violate or conflict with such Seller’s limited partnership agreement, in the case of a
Seller which is a limited partnership, or trust agreement, in the case of a Seller which is a
trust; and

     8. The execution, delivery and performance by the Sellers of the Agreement, and consummation
of the transactions contemplated thereby, do not violate Illinois or federal law.

This opinion is being furnished only to you and is solely for your benefit and is not to be used,
circulated, quoted, relied upon or otherwise referred to for any purpose without our prior written
consent. The Buyer’s lenders and their successors and permitted assigns and their administrative
or collateral agent(s) are entitled to rely upon this opinion as though it had been addressed to
them.

Very truly yours,

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]