Document:

EX-10.1

Exhibit 10.1

CONTINGENT VALUE RIGHTS AGREEMENT

          This CONTINGENT VALUE RIGHTS AGREEMENT, dated as of [ • ], 2009 (this “Agreement”),
is entered into by and among Cambium Holdings, Inc., a Delaware corporation (“Holdco”),
Vowel Representative, LLC, a Delaware limited liability company, solely in its capacity as
stockholders’ representative (in such capacity, the “Stockholders’ Representative”), and
Wells Fargo Bank, National Association, as rights agent (the “Rights Agent”) and as initial
CVR Registrar (as defined herein).

WITNESSETH:

          WHEREAS, Holdco, Voyager Learning Company, a Delaware corporation (“Vowel”),
VSS-Cambium Holdings II Corp., a Delaware corporation, Vowel Acquisition Corp. (“Vowel Merger
Sub”), Consonant Acquisition Corp. (“Consonant Merger Sub”), each, a Delaware
corporation and wholly-owned subsidiary of Holdco, and the Stockholders’ Representative, have
entered into an Agreement and Plan of Mergers (as the same may be amended, modified or supplemented
from time to time, the “Merger Agreement”), dated as of June 20, 2009, pursuant to which,
among other things, Vowel Merger Sub will merge with and into Vowel (the “Vowel Merger”),
with Vowel surviving the Vowel Merger, as a wholly-owned subsidiary of Holdco, and Consonant Merger
Sub will merge with and into Consonant (the “Consonant Merger”), with Consonant surviving
the Consonant Merger, as a wholly-owned subsidiary of Holdco;

          WHEREAS, pursuant to the Merger Agreement, Holdco agreed to create and issue to holders of
record of shares of Vowel’s common stock, par value $0.001 per share (“Vowel Common
Stock”), outstanding immediately prior to the effective time of the Vowel Merger (the
“Effective Time”), contingent value rights as hereinafter described;

          WHEREAS, each holder of Vowel Common Stock immediately prior to the Effective Time, will
receive, among other things, as merger consideration, the right to receive upon the Effective Time
one contingent value right for each share of Vowel Common Stock held by such Person (as defined in
below) immediately prior to the Effective Time; and

          WHEREAS, the parties have done all things necessary to make the contingent value rights, when
issued pursuant to the Merger Agreement and hereunder, the valid obligations of Holdco and to make
this Agreement a valid and binding agreement of Holdco, in accordance with its terms.

          WHEREAS, the parties hereto acknowledge that the Rights Agent is not party to, is not bound
by, and has no duties or obligations under, the Merger Agreement, that all references in this
Agreement to the Merger Agreement are for convenience, and that the Rights Agent shall have no
implied duties beyond the express duties set forth in this Agreement.

          NOW, THEREFORE, for and in consideration of the premises and the consummation of the
transactions referred to above, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders (as hereinafter defined), as follows:

 

 

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions.

          (a) For all purposes of this Agreement, except as otherwise expressly provided or unless the
context otherwise requires:

     (i) the terms defined in this Article I have the meanings assigned to
them in this Article I, and include the plural as well as the singular;

     (ii) all accounting terms used herein and not expressly defined herein shall
have the meanings assigned to such terms in accordance with United States generally
accepted accounting principles, as in effect on the date hereof;

     (iii) the words “herein,” “hereof” and “hereunder” and other words of similar
import refer to this Agreement as a whole and not to any particular Article, Section
or other subdivision;

     (iv) unless the context otherwise requires, words describing the singular
number shall include the plural and vice versa, words denoting any gender shall
include all genders and words denoting natural Persons shall include corporations,
partnerships and other Persons and vice versa; and

     (v) all references to “including” shall be deemed to mean including without
limitation.

          (b) Capitalized terms used but not otherwise defined herein shall have the meanings ascribed
thereto in the Merger Agreement. The following terms shall have the meanings ascribed to them as
follows:

          “280G Returned Amount” has the meaning set forth in the Escrow Agreement.

          “280G Termination Date” has the meaning set forth in the Escrow Agreement.

          “Board of Directors” means the board of directors of Holdco.

          “Board Resolution” means a copy of a resolution certified by the secretary or an
assistant secretary of Holdco to have been duly adopted by the Board of Directors and to be in full
force and effect on the date of such certification, and delivered to the Rights Agent.

          “Business Day” means any day that is not a Saturday, Sunday, legal holiday or other
day on which commercial banks in New York, New York are authorized or required by Law to close.

          “Code” means the U.S. Internal Revenue Code of 1986, as amended, including any
successor provisions and transition rules, whether or not codified.

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          “CVR Escrow Fund” has the meaning ascribed thereto in the Escrow Agreement.

          “CVR Payment Amount” means any of the First CVR Payment Amount, the Second CVR Payment
Amount, the 280G Returned Amount, or the Subsequent CVR Payment Amount, as applicable, or any other
amounts paid to the Rights Agent by the Escrow Agent under the Escrow Agreement.

          “CVR Payment Date” means, with respect to a CVR Payment Amount, the date that the
Rights Agent pays such CVR Payment Amount pursuant to Section 2.4.

          “CVR Payment Event Date” means any of the First CVR Payment Event Date, the Second CVR
Payment Event Date, the Subsequent CVR Payment Event Date, the 280G Termination Date, or such other
date a CVR Payment Amount is received by the Rights Agent, as applicable.

          “CVR Register” has the meaning set forth in Section 2.3(b).

          “CVR Registrar” has the meaning set forth in Section 2.3(b).

          “CVRs” means the contingent value rights issued by Holdco pursuant to the Merger
Agreement and this Agreement.

          “Effective Time” has the meaning set forth in the Recitals.

          “Escrow Agent” Wells Fargo Bank, National Association, in its capacity as escrow agent
under the Escrow Agreement (or any successor escrow agent thereunder).

          “Escrow Agreement” means that certain Escrow Agreement, dated as [ • ], 2009, entered
into by and among the Escrow Agent, the Stockholders’ Representative, Holdco, and Richard Surratt,
as the same may be amended, supplemented or otherwise modified from time to time in accordance with
its terms.

          “Escrow Funds” has the meaning set forth in the Escrow Agreement.

          “First CVR Payment Amount” means the amount, if any, received from the Escrow Agent in
respect of the First CVR Payment Amount (as defined in the Escrow Agreement).

          “First CVR Payment Event Date” has the meaning set forth in the Escrow Agreement.

          “Governmental Authority” means any government, state, province or other political
subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or
administration functions of or pertaining to government, or any government authority, agency,
department, board, tribunal, commission or instrumentality of the United State of America, any
foreign government, any state of the United States of America, or any municipality or other
political subdivision thereof, and any court, tribunal or arbitrators of competent jurisdiction,
and any governmental or non governmental self regulatory organization, agency or authority.

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          “Holder” means a Person in whose name a CVR is registered in the CVR Register.

          “Officer’s Certificate” means a certificate signed by the chief executive officer,
president, chief financial officer, any vice president, the controller, the treasurer or the
secretary, in each case of Holdco, in his or her capacity as such an officer, and delivered to the
Rights Agent.

          “Permitted Transfer” means: (i) the transfer of any or all of the CVRs (upon the
death of the Holder) by will or intestacy; (ii) transfer by instrument to an inter vivos or
testamentary trust in which the CVRs are to be passed to beneficiaries upon the death of the
trustee; (iii) transfers made pursuant to a court order of a court of competent jurisdiction (such
as in connection with divorce, bankruptcy or liquidation); (iv) if the Holder is a partnership or
limited liability company, a distribution by the transferring partnership or limited liability
company to its partners or members, as applicable; or (v) a transfer made by operation of law
(including a consolidation or merger) or in connection with the dissolution, liquidation or
termination of any corporation, limited liability company, partnership or other entity.

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

          “Pro Rata Share” means, with respect to any Holder as of a given CVR Payment Event
Date, the quotient of the (x) sum of all of the CVRs held of record by such Holder on such date
divided by (y) the total number of CVRs outstanding as of such date.

          “Rights Agent” means the Rights Agent named in the first paragraph of this Agreement,
until a successor Rights Agent shall have become such pursuant to the applicable provisions of this
Agreement, and thereafter “Rights Agent” shall mean such successor Rights Agent.

          “Rights Agent Costs” means the costs and expenses for which the Rights Agent is due
reimbursement under Section 3.2 and the Rights Agent Fee.

          “Rights Agent Fee” means the fee of the Rights Agent to act in such capacity pursuant
to the terms of this Agreement as set forth on Schedule 1 hereto.

          “Rights Agent Initial Payment” means the costs and expenses reasonably incurred and
invoiced by the Rights Agent prior to the Effective Time in connection with the negotiation of this
Agreement and any other reasonable costs and expenses incurred by the Rights Agent in connection
herewith prior to the Effective Time.

          “Second CVR Payment Amount” means the amount, if any, received from the Escrow Agent
in respect of the Second CVR Payment Amount (as defined in the Escrow Agreement).

          “Second CVR Payment Event Date” has the meaning set forth in the Escrow Agreement.

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          “Stockholders’ Representative” has the meaning set forth in the Preamble.

          “Subsequent CVR Payment Amount” means the amount, if any, received from the Escrow
Agent in respect of the Subsequent CVR Payment Amount (as defined in the Escrow Agreement).

          “Subsequent CVR Payment Event Date” means the date on which a Subsequent CVR Payment
Amount is paid to the Rights Agent.

          “Subsidiary” means any corporation, partnership, joint venture or other legal entity
of which any Person (either alone or through or together with an other Subsidiary), owns, directly
or indirectly, more than 50% of the stock or other equity interests the holders of which are
generally entitled to vote for the election of the board of directors or other governing body of
such corporation or other legal entity.

          “Surviving Person” has the meaning set forth in Section 6.1(a)(i).

          “Tax” means any and all taxes payable to any federal, state, local or foreign taxing
authority or agency, including (a) income, franchise, profits, gross receipts, minimum, alternative
minimum, estimated, ad valorem, value added, sales, use, service, real or personal property,
capital stock, license, payroll, withholding, disability, employment, social security, workers
compensation, unemployment, utility, severance, excise, stamp, windfall profits, transfer or other
tax of any kind whatsoever, (b) interest thereon and (c) penalties and additions to tax imposed
with respect thereto.

ARTICLE II

CONTINGENT VALUE RIGHTS

     Section 2.1 Issuance of CVRs; Appointment of Rights Agent.

          (a) The CVRs shall be issued pursuant to the Merger Agreement at the time and in the manner
set forth in the Merger Agreement. The Registrar and Administration of the CVRs shall be handled
pursuant to this Agreement in the manner set forth in this Agreement.

          (b) Holdco hereby appoints Wells Fargo Bank, National Association as the Rights Agent to act
as rights agent for Holdco in accordance with the instructions hereinafter set forth in this
Agreement, and the Rights Agent hereby accepts such appointment.

     Section 2.2 Nontransferable.

          The CVRs shall not be sold, assigned, transferred, pledged, encumbered or in any other manner
transferred or disposed of, in whole or in part, other than through a Permitted Transfer.

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     Section 2.3 No Certificate; Registration; Registration of Transfer; Change of
Address.

          (a) The CVRs shall not be evidenced by a certificate or other instrument.

          (b) The Rights Agent shall keep a register (the “CVR Register”) for the registration
of CVRs in a book-entry position for each CVR Holder. The CVR Register shall set forth the name
and address of each Holder, and the number of CVRs held by such Holder and Tax Identification
Number of each Holder. Each of Holdco and the Stockholders’ Representative may receive and inspect
a copy of the CVR Register, from time to time, upon written request made to the CVR Registrar.
Within five (5) Business Days after receipt of such request, the CVR Registrar shall deliver a copy
of the CVR Registrar, as then in effect, to Holdco and the Stockholders’ Representative at the
address set forth in Section 7.1. The Rights Agent is hereby initially appointed “CVR Registrar” for
the purpose of registering CVRs and transfers of CVRs as herein provided.

          (c) Subject to the restriction on transferability set forth in Section 2.2, every request made
to transfer a CVR must be in writing and accompanied by a written instrument or instruments of
transfer and any other requested documentation in form reasonably satisfactory to Holdco and the
CVR Registrar, duly executed by the registered Holder or Holders thereof or by the duly appointed
legal representative thereof or by a duly authorized attorney, such signature to be guaranteed by a
participant in a recognized Signature Guarantee Medallion Program. A request for a transfer of a
CVR shall be accompanied by such documentation establishing satisfaction that the transfer is a
Permitted Transfer as may be reasonably requested by Holdco and the CVR Registrar (including
opinions of counsel, if appropriate). Upon receipt of such written notice, the CVR Registrar
shall, subject to its reasonable determination that the transfer instrument is in proper form and
the transfer otherwise complies with the other terms and conditions herein, register the transfer
of the CVRs in the CVR Register. All duly transferred CVRs registered in the CVR Register shall be
the valid obligations of Holdco, evidencing the same rights and entitling the transferee to the
same benefits and rights under this Agreement as those held by the transferor. No transfer of a
CVR shall be valid until registered in the CVR Register, and any transfer not duly registered in
the CVR Register will be void ab initio. Any transfer or assignment of the CVRs shall be without
charge (other than the cost of any transfer Tax which shall be the responsibility of the
transferor) to the Holder.

          (d) A Holder may make a written request to the CVR Registrar to change such Holder’s address
of record in the CVR Register. The written request must be duly executed by the Holder. Upon
receipt of such written notice, the CVR Registrar shall promptly record the change of address in
the CVR Register.

          (e) The Stockholders’ Representative may make a written request to the Rights Agent for a list
containing the names, addresses and number of CVRs of the Holders that are registered in the CVR
Register. Within five (5) Business Days following the date of receipt by the Rights Agent of such
request, the CVR Registrar shall deliver a copy of such list to the Stockholders’ Representative.

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     Section 2.4 Payment Procedures.

          (a) Within five (5) Business Days after its receipt of any CVR Payment Amount, the Rights
Agent shall deliver to each Holder its Pro Rata Share of the applicable CVR Payment Amount based on
the number of CVRs held by such Holder at the close of business as reflected on the CVR Register on
the applicable CVR Payment Event Date (x) by check mailed to the address of each Holder (or any
successor or permitted transferee or assignee thereof) as reflected in the CVR Register as of the
close of business on the day that is two (2) Business Days prior to the date that the Rights Agent
performs its obligations under this Section 2.4, or, (y) with respect to any Holder that is
due payment pursuant to this Agreement in excess of $1,000,000 whose bank information has been
provided to the Escrow Agent within Payment Notices (as defined in the Escrow Agreement) delivered
by the Stockholder’s Representative with wire transfer instructions on or prior to the date
referred to in immediately preceding clause (x) above, by wire transfer of immediately available
funds to such account. Subsequent payments will require new wire instructions be provided within
each Payment Notice received by the Escrow Agent.

          (b) The Rights Agent shall deduct and withhold, or cause to be deducted or withheld, from each
CVR Payment Amount otherwise payable pursuant to this Agreement, the amounts, if any, that Holdco
or the applicable subsidiary of Holdco is required to deduct and withhold with respect to the
making of such payment under the Code; provided that in determining the required amount to be
withheld, the Rights Agent will give effect to any properly presented form (e.g., Form W-8 or W-9
as applicable) eliminating or reducing the amount required to be withheld. To the extent that
amounts are so withheld or paid over to or deposited with the relevant Governmental Authority, such
withheld amounts shall be treated for all purposes of this Agreement as having been paid to the
Holder in respect of which such deduction and withholding was made.

          (c) Tax Reporting for Payments made pursuant to Payment Notices received by the Escrow Agent
under this Agreement will be reported to the Internal Revenue Service on Tax Form 1099B or 1099INT,
as applicable.

     Section 2.5 No Voting, Dividends or Interest; No Equity or Ownership Interest in Holdco.

          (a) The CVRs shall not have any voting or dividend rights, and interest shall not accrue on
any amounts payable on the CVRs to any Holder.

          (b) The CVRs shall not represent any equity or ownership interest in Holdco or in any
constituent company to the Vowel Merger.

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ARTICLE III

THE RIGHTS AGENT

     Section 3.1 Certain Duties and Responsibilities.

          The Rights Agent shall not have any liability for any actions taken or not taken in connection
with this Agreement, except to the extent of its willful misconduct, bad faith or gross negligence.
No provision of this Agreement shall require the Rights Agent to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers.

     Section 3.2 Certain Rights of Rights Agent.

          The Rights Agent undertakes to perform such duties and only such duties as are specifically
set forth in this Agreement, and no implied covenants or obligations shall be read into this
Agreement against the Rights Agent. In addition:

          (a) the Rights Agent may rely and shall be protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice, request, direction,
consent, order or other paper or document believed by it to be genuine and to have been signed or
presented by the proper party or parties;

          (b) whenever the Rights Agent shall deem it desirable that a matter be proved or established
prior to taking, suffering or omitting any action hereunder, the Rights Agent may, in the absence
of willful misconduct, faith or gross negligence on its part, rely upon an Officer’s Certificate;

          (c) the Rights Agent may consult with, and obtain advice from, legal counsel in the event of
any question as to any of the provisions hereof or the duties hereunder, and it shall incur no
liability and shall be deemed to be acting in accordance with the opinion and instructions of such
counsel. The reasonable costs of such counsel’s services shall be paid to the Rights Agent in
accordance with Section 3.2(h) below. The Rights Agent may perform any and all of its
duties through its agents, representatives, attorneys, custodians, and/or nominees.

          (d) if the Rights Agent becomes involved in litigation on account of this Agreement, it shall
have the right to retain counsel and shall be entitled to reimbursement for all reasonable
documented costs and expenses related thereto as provided in Sections 3.2(h) and
3.2(d) hereof; provided, however, that the Rights Agent shall not be entitled to
any such reimbursement to the extent such litigation ultimately determines that the Rights Agent
acted with gross negligence or willful misconduct. In the event that conflicting demands are made
upon the Rights Agent for any situation addressed or not addressed in this Agreement, the Rights
Agent may withhold performance of the terms of this Agreement until such time as said conflicting
demands shall have been withdrawn or the rights of the respective parties shall have been settled
by court adjudication, arbitration, joint order or otherwise.

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          (e) the permissive rights of the Rights Agent to do things enumerated in this
Agreement shall not be construed as a duty;

          (f) the Rights Agent shall not be required to give any note or surety in respect of the
execution of such powers or otherwise in respect of the premises; and

          (g) Holdco agrees to indemnify the Rights Agent for, and hold the Rights Agent harmless
against, any loss, liability, claim, demands, suits or expense arising out of or in connection with
the Rights Agent’s duties under this Agreement, including the costs and expenses of defending the
Rights Agent against any claims, charges, demands, suits or loss, unless such loss shall have been
determined by a court of competent jurisdiction to be a result of the Rights Agent’s willful
misconduct, bad faith or gross negligence, provided, however, that the Rights
Agent’s aggregate liability with respect to, arising from, or arising in connection with this
Agreement, or from all services provided or omitted to be provided under this Agreement, whether in
contract, in tort, or otherwise, is limited to, and shall not exceed, the amounts paid hereunder by
Holdco to the Rights Agent as fees and charges, but not including reimbursable expenses;
provided, further, however, 50% of any amounts payable by Holdco under this
Section 3.2(g) shall be reimbursed to Holdco out of the CVR Escrow Fund; and

          (h) Holdco, on the one hand, and the Stockholders’ Representative, on behalf of the Holders,
on the other hand, shall each be responsible for paying 50% of the Rights Agent Costs and the
Rights Agent Initial Payment, the portion of which with respect to the Holders, shall be payable
from the CVR Escrow Fund. Notwithstanding the foregoing and solely for the benefit of the Rights
Agent, Holdco and the Stockholders’ Representative, on behalf of the Holders, agrees (i) to equally
pay the fees and expenses of the Rights Agent in connection with this Agreement, as set forth on
Schedule 1 hereto, and (ii) to equally reimburse the Rights Agent for all taxes and
governmental charges, reasonable expenses and other charges of any kind and nature incurred by the
Rights Agent in the execution of this Agreement (other than taxes measured by the Rights Agent’s
net income). The Rights Agent shall also be entitled to reimbursement from Holdco and the
Stockholders’ Representative, on behalf of the Holders, on an equal basis for all reasonable and
necessary out-of-pocket expenses (including reasonable fees and expenses of the Rights Agent’s
counsel and agent) paid or incurred by it in connection with the administration by the Rights Agent
of its duties hereunder. An invoice for the Rights Agent Fee (prorated for the period of time from
the previous payment of the Rights Agent Fee, if applicable) will be rendered a reasonable time
prior to, and paid on, the date upon which the Effective Time occurs and each CVR Payment Date. An
invoice for any out-of-pocket expenses and per item fees realized will be rendered and payable
within thirty (30) days after receipt by Holdco and the Stockholders’ Representative, except for
postage and mailing expenses, which funds must be received one (1) Business Day prior to the
scheduled mailing date. Each of Holdco and the Stockholders’ Representative, on behalf of the
Holders, on an equal basis, agrees to pay to the Rights Agent any amounts, including fees and
expenses, payable in favor of the Rights Agent in connection with any dispute, resolution or
arbitration arising under or in connection with this Agreement. Notwithstanding anything in this
Agreement to the contrary, the portion of any payment under this Section 3.2(h) which is payable by the
Stockholders’ Representative shall be paid to the Rights Agent solely by the Rights Agent deducting
such payment from any then unpaid CVR Payment Amount.

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     Section 3.3 Resignation and Removal; Appointment of Successor.

          (a) The Rights Agent may resign at any time by giving written notice thereof to Holdco and the
Stockholders’ Representative specifying a date when such resignation shall take effect, which
notice shall be sent at least thirty (30) days prior to the date so specified.

          (b) If the Rights Agent shall resign, be removed or become incapable of acting, Holdco, by way
of a Board Resolution, shall promptly appoint a qualified successor Rights Agent who shall be
reasonably acceptable to the Stockholders’ Representative. The successor Rights Agent so appointed
shall, forthwith upon its acceptance of such appointment in accordance with this Section
3.3(b), become the successor Rights Agent.

          (c) Holdco shall give notice of each resignation and each removal of a Rights Agent and each
appointment of a successor Rights Agent by mailing written notice of such event by first-class
mail, postage prepaid, to Stockholders’ Representative and to the Holders as their names and
addresses appear in the CVR Register. Each notice shall include the name and address of the
successor Rights Agent. If Holdco fails to send such notice within ten days after acceptance of
appointment by a successor Rights Agent, the successor Rights Agent shall cause such notice to be
mailed at the expense of Holdco.

          (d) If a successor Rights Agent has not been appointed and has not accepted such appointment
by the end of the 30-calendar day period, the Rights Agent may apply to a court of competent
jurisdiction for the appointment of a successor Rights Agent, and the costs, expenses and
reasonable attorneys’ fees which are incurred in connection with such a proceeding shall be paid in
accordance with Section 3.2(h) hereof. Any such successor to the Rights Agent shall agree
to be bound by the terms of this Agreement and shall, upon receipt of the all relevant books and
records relating thereto, become the Rights Agent hereunder. Upon delivery of all of the relevant
books and records, pursuant to the terms of this Section 3.3(d) to a successor Rights
Agent, the Rights Agent shall thereafter be discharged from any further obligations hereunder. The
Rights Agent is hereby authorized, in any and all events, to comply with and obey any and all final
judgments, orders and decrees of any court of competent jurisdiction which may be filed, entered or
issued, and all final arbitration awards and, if it shall so comply or obey, it shall not be liable
to any other person by reason of such compliance or obedience.

ARTICLE IV

COVENANTS

     Section 4.1 List of Holders.

          Holdco shall furnish or cause to be furnished to the Rights Agent in such form as Holdco
receives from its transfer agent or from Vowel’s transfer agent prior to the Effective Time (or
other agent performing similar services for Holdco or Vowel), the names, addresses, 
shareholdings and tax certification (T.I.N.) of the record holders of Vowel Common Stock within
sixty (60) days after the Effective Time.

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     Section 4.2 Payment of CVR Payment Amount.

          Each of the Stockholders’ Representative and Holdco shall use reasonable best efforts to cause
the Rights Agent to pay the CVR Payment Amount upon its receipt thereof from the CVR Escrow Fund
provided by the Escrow Agent in the manner provided for in Sections 2.4 and in accordance with the
terms of this Agreement.

     Section 4.3 Ability to Make Prompt Payment.

          Neither Holdco nor any of its Subsidiaries shall enter into any agreement that would prohibit
or restrict the Rights Agent’s ability to pay the CVR Payment Amount to the Holders under this
Agreement.

     Section 4.4 Assignment.

          Holdco shall not, in whole or in part, assign any of its rights or obligations under this
Agreement other than in accordance with the terms of Section 6.1 hereof.

ARTICLE V

AMENDMENTS

     Section 5.1 Amendments Without Consent of Holders or Stockholders’ Representative.

          (a) Without the consent of any Holders, the Stockholders’ Representative or the Rights Agent,
Holdco, when authorized by a Board Resolution, at any time and from time to time, may enter into
one or more amendments hereto, for any of the following purposes:

     (i) to evidence the succession of another Person to Holdco and the assumption
by any such successor of the covenants of Holdco herein in a transaction
contemplated by Section 6.1 hereof; or

     (ii) to evidence the termination of the CVR Registrar and the succession of
another Person as a successor CVR Registrar and the assumption by any successor of
the obligations of the CVR Registrar herein.

          (b) Without the consent of any Holders or the Stockholders’ Representative, Holdco, when
authorized by a Board Resolution, and the Rights Agent, in the Rights Agent’s sole and absolute
discretion, at any time and from time to time, may enter into one or more amendments hereto, for
any of the following purposes:

     (i) to evidence the succession of another Person as a successor Rights Agent
and the assumption by any successor of the covenants and obligations of the Rights
Agent herein;

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     (ii) to add to the covenants of Holdco such further covenants,
restrictions, conditions or provisions as the Board of Directors and the Rights
Agent shall consider to be for the protection of the Holders; provided, that
in each case, such provisions shall not adversely affect the interests of the
Holders;

     (iii) to cure any ambiguity, to correct or supplement any provision herein that
may be defective or inconsistent with any other provision herein, or to make any
other provisions with respect to matters or questions arising under this Agreement;
provided, that in each case, such provisions shall not adversely affect the
interests of the Holders; or

     (iv) to add, eliminate or change any provision of this Agreement (other than
Section 2.4) unless such addition, elimination or change is adverse to the interests
of the Holders.

          (c) Promptly after the execution by Holdco and the Rights Agent of any amendment pursuant to
the provisions of this Section 5.1, Holdco shall mail a notice thereof by first-class mail to the
Stockholders’ Representative and each of the Holders at their addresses as they shall appear on the
CVR Register, setting forth in general terms the substance of such amendment.

     Section 5.2 Amendments With Consent of the Stockholders’ Representative.

          (a) Subject to Section 5.1 (which amendments pursuant to Section 5.1 may be made without the
consent of the Holders or the Stockholders’ Representative), with the consent of the Stockholders’
Representative (which may be granted or withheld in its sole discretion), acting on behalf of the
Holders, Holdco, when authorized by a Board Resolution, and the Rights Agent may enter into one or
more amendments hereto for the purpose of adding, eliminating or changing any provisions of this
Agreement, even if such addition, elimination or change is in any way adverse to the interests of
the Holders.

          (b) Promptly after the execution by Holdco and the Rights Agent of any amendment pursuant to
the provisions of this Section 5.2, Holdco shall mail a notice thereof by first-class mail to the
Stockholders’ Representative and the Holders at their addresses as they shall appear on the CVR
Register, setting forth in general terms the substance of such amendment.

     Section 5.3 Execution of Amendments.

          In executing any amendment permitted by this Article V, the Rights Agent shall be
entitled to receive, and shall be fully protected in relying upon, an opinion of counsel stating
that the execution of such amendment is authorized or permitted by this Agreement. The Rights
Agent may, but is not obligated to, enter into any such amendment that affects the Rights Agent’s
own rights, privileges, covenants or duties under this Agreement or otherwise.

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     Section 5.4 Effect of Amendments.

          Upon the execution of any amendment under this Article V, this Agreement shall be
modified in accordance therewith, such amendment shall form a part of this Agreement for all
purposes and every Holder shall be bound thereby.

ARTICLE VI

CONSOLIDATION, MERGER, SALE OR CONVEYANCE

     Section 6.1 Holdco May Consolidate, Etc.

          (a) Holdco shall not consolidate with or merge into any other Person or convey, transfer or
lease its properties and assets substantially as an entirety to any Person, unless:

     (i) the Person formed by such consolidation or into which Holdco is merged or
the Person that acquires by conveyance or transfer, or that leases, the properties
and assets of Holdco substantially as an entirety (the “Surviving Person”)
shall expressly assume the performance of every duty and covenant of this Agreement
on the part of Holdco to be performed or observed; and

     (ii) Holdco has delivered to the Rights Agent an Officer’s Certificate, stating
that such consolidation, merger, conveyance, transfer or lease complies with this
Article VI and that all conditions precedent herein provided for relating to
such transaction have been complied with.

          (b) For purposes of this Section 6.1 only, “convey, transfer or lease its properties and assets
substantially as an entirety” shall mean (i) properties and assets contributing in the aggregate at
least 80% of Holdco’s total consolidated revenues for the current period as reported in Holdco’s
last available periodic financial report (quarterly or annual, as the case may be) or (ii)
properties and consolidated assets constituting in the aggregate at least 80% of Holdco’s total
assets for the current period as reported in Holdco’s last available periodic financial report
(quarterly or annual, as the case may be).

          (c) In the event Holdco conveys, transfers or leases its properties and assets substantially
as an entirety in accordance with the terms and conditions of this Section 6.1, Holdco and the
Surviving Person shall be jointly and severally liable for the payment of the CVR Payment Amount
and the performance of every duty and covenant of this Agreement on the part of Holdco to be
performed or observed.

     Section 6.2 Successor Substituted.

          Upon any consolidation of or merger by Holdco with or into any other Person, or any
conveyance, transfer or lease of the properties and assets substantially as an entirety to any
Person in accordance with Section 6.1, the Surviving Person shall succeed to, and be substituted for,
and may exercise every right and power of, Holdco under this Agreement with the same

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effect as if the Surviving Person had been named as Holdco herein, and thereafter, except in the case of a
lease, the predecessor Person shall be relieved of all obligations and covenants under this
Agreement and the CVRs.

ARTICLE VII

OTHER PROVISIONS OF GENERAL APPLICATION

     Section 7.1 Notices to the Rights Agent, Holdco and the Stockholders’ Representative.

          Any request, demand, authorization, direction, notice, consent, waiver or other document
provided or permitted by this Agreement shall be sufficient for every purpose hereunder if in
writing and sent by facsimile transmission, delivered personally, or by certified or registered
mail (return receipt requested and first-class postage prepaid) or sent by a nationally recognized
overnight courier (with proof of service), addressed as follows, and shall be deemed to have been
given upon receipt:

          (a) if to the Rights Agent, addressed to it at Shareowner Services: MAC N9100-030, 161 North
Concord Exchange Street, St. Paul, Minnesota 55075, facsimile at (651) 450-4078, e-mail at
martin.j.knapp@wellsfargo.com, Attention: Marty Knapp, or at any other address previously
furnished in writing to the
Stockholders’ Representative and Holdco by the Rights Agent in accordance with this Section 7.1;

          (b) if to Holdco, addressed to it at Cambium Holdings, Inc., c/o Veronis Suhler Stevenson, 350
Park Avenue, New York, New York 10022, telephone at (212) 381-8420, facsimile at (212) 381-8168,
email at troellers@vss.com, Attention: Scott J. Troeller; with a copy to Lowenstein Sandler PC,
1251 Avenue of the Americas, 18th Floor, New York, New York 10020, telephone at (212) 204-8688,
facsimile at (973) 597-2507, email at ssiesser@lowenstein.com, Attention: Steven E. Siesser, Esq.,
or at any other address previously furnished in writing to the Rights Agent and the Stockholders’
Representative by Holdco in accordance with this Section 7.1; or

          (c) if to the Stockholders’ Representative, addressed to it at Vowel Representative, LLC, c/o
Perkins Coie LLP, 131 South Dearborn Street, Suite 1700, Chicago, Illinois 60603, telephone at
(312) 324-8600, facsimile at (312) 324-9400, email at pgordon@perkinscoie.com, Attention: Phil
Gordon, Esq.; with a copy to Perkins Coie LLP, 131 South Dearborn Street, Suite 1700, Chicago,
Illinois 60603, telephone at (312) 324-8600, facsimile at (312) 324-9400, email at
pgordon@perkinscoie.com, Attention: Phil Gordon, Esq., or at any other address previously
furnished in writing to the Rights Agent and Holdco by Stockholders’ Representative in accordance
with this Section 7.1.

     Section 7.2 Notice to Holders.

          Where this Agreement provides for notice to Holders, such notice shall be sufficiently given
(unless otherwise herein expressly provided) if in writing and mailed, first-

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class postage prepaid,
to each Holder affected by such event, at his, her or its address as it
appears in the CVR Register, not later than the latest date, and not earlier than the earliest
date, prescribed for the giving of such notice. In any case where notice to Holders is given by
mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to other Holders.

     Section 7.3 Effect of Headings.

          The Article and Section headings herein are for convenience only and shall not affect the
construction hereof.

     Section 7.4 Successors and Assigns.

          All covenants and agreements in this Agreement by Holdco shall bind its successors and
assigns, whether so expressed or not.

     Section 7.5 Benefits of Agreement.

          Nothing in this Agreement, express or implied, shall give to any Person (other than the
parties hereto and their permitted successors and assigns hereunder) any benefit or any legal or
equitable right, remedy or claim under this Agreement or under any covenant or provision herein
contained, all such covenants and provisions being for the sole benefit of the parties hereto and
their permitted successors and assigns. For the avoidance of doubt, no Holder shall have any right
to enforce or otherwise assert a claim with respect to this Agreement; all such rights and claims
shall only be brought by the Stockholders’ Representative on behalf of such Holder.

     Section 7.6 Governing Law.

          This Agreement and the CVRs shall be governed by and construed in accordance with the laws of
the State of Delaware without regards to its rules of conflicts of laws.

     Section 7.7 Legal Holidays.

          In the event that a CVR Payment Date shall not be a Business Day, then, notwithstanding any
provision of this Agreement to the contrary, any payment required to be made in respect of the CVRs
on such date need not be made on such date, but may be made on the next succeeding Business Day
with the same force and effect as if made on the CVR Payment Date.

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     Section 7.8 Severability Clause.

          In case any one or more of the provisions contained in this Agreement shall for any reason be
held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality
or unenforceability shall not affect any other provisions of this Agreement, but this
Agreement shall be construed as if such invalid or illegal or unenforceable provision had never
been contained herein. Upon such determination that any term or other provision is invalid,
illegal or unenforceable, the court or other tribunal making such determination is authorized and
instructed to modify this Agreement so as to effect the original intent of the parties as closely
as possible so that the transactions and agreements contemplated herein are consummated as
originally contemplated to the fullest extent possible.

Section 7.9 Counterparts.

          This Agreement may be executed by the parties hereto, in two or more counterparts (which may be
effectively delivered by facsimile, by electronic transmission of portable document format (PDF)
files or tagged image file format (TIF) files, or by other electronic means)), each of which shall
be an original and all of which shall together constitute one and the same agreement.

     Section 7.10 Termination.

     This Agreement shall terminate and be of no further force or effect, and the parties hereto
shall have no liability hereunder, upon payment by the Rights Agent to the Holders of the then
remaining balance of the Escrow Funds in accordance with this Agreement.

     Section 7.11 Entire Agreement.

     This Agreement, the Merger Agreement, and the Escrow Agreement represent the entire
understanding of Holdco and the Stockholders’ Representative with reference to the CVRs, and this
Agreement supersedes any and all other oral or written agreements hereto made with respect to the
CVRs, except for the Merger Agreement and the Escrow Agreement. This Agreement and the Escrow
Agreement represent the entire understanding of the Rights Agent with reference to the CVRs, and
this Agreement supersedes any and all other oral or written agreements hereto made with respect to
the CVRs, except for the Merger Agreement and the Escrow Agreement. If and to the extent that any
provision of this Agreement is inconsistent or conflicts with the Merger Agreement or the Escrow
Agreement, the Escrow Agreement shall govern and be controlling, and this Agreement may be amended,
modified, supplemented or altered only in accordance with the terms of Article V.

[Remainder of Page Intentionally Left Blank.]

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          IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf
by its duly authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	CAMBIUM HOLDINGS, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	VOWEL REPRESENTATIVE, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Contingent Value Rights AgreementEX-10.2

Exhibit 10.2

ESCROW AGREEMENT

          This ESCROW AGREEMENT (this “Agreement”), dated as of [ • ], 2009, is by and among
WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, having an office at 161
North Concord Exchange, St. Paul, Minnesota (“Wells Fargo”), as escrow agent (the
“Escrow Agent”), Vowel Representative, LLC, a Delaware limited liability company, solely in
its capacity as stockholders’ representative (in such capacity, the “Stockholders’
Representative”), Cambium Holdings, Inc., a Delaware corporation (“Holdco”), Voyager
Learning Company, a Delaware corporation (“Vowel”), and Richard Surratt, an individual
residing at [•](“Surratt”).

          A. Holdco, Vowel, VSS-Cambium Holdings II Corp., a Delaware corporation, Vowel Acquisition
Corp., a Delaware corporation and a wholly-owned subsidiary of Holdco (“Vowel Merger Sub”),
and Consonant Acquisition Corp., a Delaware corporation, a wholly-owned subsidiary of Holdco
(“Consonant Merger Sub”) and the Stockholder’s Representative, have entered into an
Agreement and Plan of Mergers, dated as of June 20, 2009 (as the same may be amended, supplemented
or otherwise modified from time to time, the “Merger Agreement”), pursuant to which, among
other things, Vowel Merger Sub will merge with and into Vowel (the “Vowel Merger”), with
Vowel surviving the Vowel Merger as a wholly-owned subsidiary of Holdco, and Consonant Merger Sub
will merge with and into Consonant (the “Consonant Merger”), with Consonant surviving the
Consonant Merger as a wholly-owned subsidiary of Holdco.

          B. Each share of Vowel’s common stock, par value $0.001 per share (“Vowel Common
Stock”), outstanding immediately prior to the effective time of the Vowel Merger (the
“Effective Time”), upon the Effective Time was converted into, among other merger
consideration therefor, the right to receive one contingent value right (each a “CVR”)
issued by Holdco in accordance with the terms and conditions set forth in the Merger Agreement and
that certain Contingent Value Rights Agreement, dated as the date hereof (as the same may be
amended, supplemented or otherwise modified from time to time, the “CVR Agreement”), by and
among Holdco, the Stockholders’ Representative and Wells Fargo, as rights agent and initial CVR
registrar (including any successor rights agent under the CVR Agreement, the “Rights
Agent”).

          C. In accordance with the terms and conditions of the Merger Agreement, (i) Vowel is obligated
at the Effective Time to deposit, or cause its Subsidiaries (as that term is defined in the Merger
Agreement) to deposit, with the Escrow Agent for deposit into an escrow account to be established
under this Agreement (the “CVR Escrow Account”), the Vowel Tax Refund Holdback Amount (as
that term is defined in the Merger Agreement), if any, for the purpose of funding certain payments
under the CVR Agreement, (ii) after the Effective Time, Vowel is obligated to deposit, and Holdco
is obligated to cause Vowel to deposit, with the Escrow Agent for deposit into the CVR Escrow
Account, (a) all Vowel Tax Refunds (as that term is defined in the Merger Agreement), for the
purpose of further funding the payments under the CVR

 

 

Agreement, and (b) an agreed upon portion of the Vowel Shared Tax Offset Amounts, as
contemplated in Section 5.23(c) of the Merger Agreement, (iii) Vowel, or a trustee or
administrator under the applicable Liability Funding Document, is obligated to deposit, and Holdco
is obligated to cause Vowel to deposit, with the Escrow Agent for deposit into a separate escrow
account to be established under this Agreement (the “Excess Employee Payment Account”) the
Excess Employee Payment Amounts, (iv) pursuant to Section 5.23(c) of the Merger Agreement,
Holdco and its Subsidiaries are entitled to receive funds from the CVR Escrow Account to satisfy
the Agreed Contingencies, including an agreed upon portion of reasonable documented
out-of-pocket costs, expenses or liabilities incurred by Holdco or any of its Subsidiaries from and
after the Effective Time that reasonably relate to
Agreed Contingencies (which documented costs for the avoidance of
doubt, are included in the definition of “Agreed
Contingencies”), and (v) pursuant to Section 5.22(b) of the Merger
Agreement, Holdco and its Subsidiaries are entitled to receive funds from the CVR Escrow Account to
satisfy the Vowel Tax Refund Documented Costs (as that term is defined in the Merger Agreement), in
each case, to be held by the Escrow Agent, and thereafter paid or disbursed by the Escrow Agent, in
accordance with the terms hereof. The amounts deposited into the CVR Escrow Account, together with
all interest, dividends or profit on or proceeds or other income earned thereon, are referred to
collectively herein as the “CVR Escrow Fund”, and the amounts deposited into the Excess
Employee Payment Account, together with all interest, dividends or profit on or proceeds or other
income earned thereon, are referred to collectively herein the “Excess Employee Payment
Fund”.

          D. Pursuant to Section 5.24 of the Merger Agreement, Vowel is obligated to pay to the
Escrow Agent for deposit into a separate escrow account to be established under this Agreement (the
“280G Escrow Account”, and together with the CVR Escrow Account and the Excess Employee
Payment Account, the “Escrow Accounts”) for the purpose of discharging certain tax gross-up
obligations (the “Tax Gross-Up Obligations”) of Vowel to Surratt, the President and Chief
Executive Officer of Vowel, for taxes which may become due by Surratt in connection with Section
280G of the U.S. Internal Revenue Code of 1986, as amended (the “Code”) an amount equal to
$3,000,000 (including all interest, dividends or profit on or proceeds or other income earned
thereon, the “280G Escrow Fund”, and together with the Excess Employee Payment Fund and the
CVR Escrow Fund, the “Escrow Funds”).

          E. The parties desire to set forth the terms and conditions pursuant to which the Escrow Funds
will be established, maintained and released, and such terms and conditions are set forth in this
Agreement.

          F. The parties further desire that the Escrow Agent shall serve, and the Escrow Agent is
willing to serve, as an escrow agent pursuant to the terms and conditions set forth herein.

          Capitalized terms used in this Agreement and not otherwise defined herein shall have the
meanings given to such terms in the Merger Agreement. The parties hereto acknowledge that the
Escrow Agent is not a party to, is not bound by, and has no duties or obligations under, the Merger
Agreement, that all references in this Agreement to the

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Merger Agreement are for convenience, and that the Escrow Agent shall have no implied duties
beyond the express duties set forth in this Agreement.

          Accordingly, in consideration of the foregoing, the mutual promises and covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

          1. Escrow Agent and Escrow Accounts.

               1.1 Escrow Accounts. The Stockholders’ Representative, Holdco and Vowel do hereby (a)
consent to the establishment of the CVR Escrow Fund and the Excess Employee Payment Fund to provide
a source of funds for the satisfaction of the CVR Payment Amounts (as defined in the CVR Agreement)
pursuant to the CVR Agreement and (b) consent to the establishment of the 280G Escrow Fund to
provide a source of funds for the satisfaction of the Tax Gross-Up Obligations.

               1.2 Surratt. Surratt hereby consents to the establishment of the 280G Escrow Fund to
provide the sole source of funds for the satisfaction of the Tax Gross-Up Obligations.

               1.3 Escrow Agent. Vowel, Holdco, the Stockholders’ Representative and Surratt hereby
appoint the Escrow Agent as escrow agent and the Escrow Agent desires and is willing to act and
serve as escrow agent pursuant to the terms and conditions of this Agreement.

               1.4 Joint Instructions. Notwithstanding any provision herein to the contrary, the
Escrow Agent shall distribute or pay any amount held in (i) the CVR Escrow Fund pursuant to any
joint written instructions received by the Escrow Agent from Holdco and the Stockholders’
Representative, executed by Holdco and the Stockholders’ Representative, (ii) the Excess Employee
Payment Fund pursuant to any written instructions received from Holdco and the Stockholders’
Representative, executed by Holdco and the Stockholders’ Representative, and (iii) the 280G Escrow
Fund pursuant to any joint written instructions received by the Escrow Agent from Holdco and the
Stockholders’ Representative and Surratt, executed by Holdco and the Stockholders’ Representative
and Surratt.

          2. Investment of the Escrow Funds.

               2.1 Investment. The Escrow Agent is hereby directed to deposit, transfer, hold and
invest the Escrow Funds in the “100% FDIC Insured Non-interest Bearing Deposit Account” in
accordance with the investment election form delivered by the Stockholders’ Representative and
Holdco to the Escrow Agent prior to the Effective Time. Each of the parties hereby acknowledges
that: (i) Holdco and the Stockholders’ Representative have full power to jointly direct
investments of the CVR Escrow Fund, (ii) the Stockholders’ Representative, Surratt and Holdco have
full power to jointly direct investments of the 280G Escrow Fund and (iii) the investment direction
in this Section 2.1 may be changed at any time and from time to time, by (x) written notice
of the Stockholders’ Representative in the case of the Excess Employee Payment

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Fund, and (y) joint written notice of (A) Holdco and the Stockholders’ Representative in the
case of the CVR Escrow Fund, and (B) the Stockholders’ Representative, Surratt and Holdco, in the
case of the 280G Escrow Fund (any investments made in accordance with any of clauses (i) through
(iii) above of this Section 2.1 are hereinafter referred to as “Permitted
Investments”).

               (a) Interest and other earnings on Permitted Investments with respect to an Escrow Fund shall
be added to the Escrow Account for such Escrow Fund and shall be subject to distribution in
accordance with this Agreement. Any loss or expenses incurred as a result of a Permitted
Investment with respect to an Escrow Fund will be borne by the Escrow Account for such Escrow Fund.

               (b) The Escrow Agent is hereby authorized to execute purchases and sales of Permitted
Investments through the facilities of its own trading or capital markets operations or those of any
affiliated entity.

               (c) The Escrow Agent is hereby authorized and directed to sell or redeem any such investments
as it deems necessary to make any payments or distributions required under this Agreement. The
Escrow Agent shall have no responsibility or liability for any loss which may result from any
investment or sale of investment made pursuant to this Agreement. The Escrow Agent is hereby
authorized, in making or disposing of any Permitted Investment, to deal with itself (in its
individual capacity) or with any one or more of its affiliates, whether it or any such affiliate is
acting as agent of the Escrow Agent or for any third person or dealing as principal for its own
account. The parties hereto acknowledge and agree that the Escrow Agent is not providing
investment supervision, recommendations, or advice.

               (d) Vowel, Holdco, the Stockholders’ Representative and Surratt acknowledge and agree that the
delivery of the Escrow Funds by the Escrow Agent is subject to the sale and final settlement of
Permitted Investments. Proceeds of a sale of Permitted Investments will be delivered on the
Business Day on which the appropriate instructions are delivered to the Escrow Agent if received
prior to the deadline for same day sale of such Permitted Investments. If such instructions are
received after the applicable deadline, proceeds will be delivered on the next succeeding Business
Day.

               2.2 Monthly Statements from the Escrow Agent to the Parties. The Escrow Agent shall
send statements to each of the parties hereto on a monthly basis reflecting activity in each of the
Escrow Accounts for the preceding month. No such statement need be rendered for an Escrow Account
if no activity occurred for such month with respect to such Escrow Account.

          3. Withdrawal Procedures and Payments.

               3.1
Payment of Agreed Contingencies.

               (a) If at any time or from time to time, Holdco determines in

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good faith that it is entitled to any amounts from the CVR Escrow Fund as a result of any
Agreed Contingency in accordance with Section 5.23 of the Merger Agreement, it shall give
written notice (a “Agreed Contingency Payment Notice”) to the Escrow Agent and the Stockholders’
Representative of such withdrawal to be made from the CVR Escrow Fund, which notice shall include
the following: (i) a calculation of the amount of the Agreed Contingency to be released
from the CVR Escrow Fund, after applying the $250,000 deductible and the sharing mechanism as and
to the extent set forth in Section 5.23(c) of the Merger
Agreement (each, a “AC Payment
Amount”); (ii) an appropriate cross-reference to Section 9.15(i) to Vowel Disclosure Schedule
identifying the Agreed Contingency, (iii) a cumulative calculation showing the amounts, if
any, previously expended to pay, settle or defend all Agreed
Contingencies, (iv) reasonable
evidence (in the form of a bill, assessment, notice, invoice, receipt or other writing) that the
amount of such Agreed Contingency has been paid or is due and payable, provided that any
bill, invoice, receipt or other evidence relating to fees and expenses shall contain reasonable
detail regarding such fees and expenses, and (v) solely with
respect to any Agreed Contingency that constitutes a Specified Agreed Contingency, a certificate executed by Holdco’s Chief
Executive Officer or Chief Financial Officer stating that Holdco and/or Vowel, as the case may be,
have satisfied in full their obligations under clauses (i) and (ii) of Section 5.23(c) of the
Merger Agreement with respect to the Specified Agreed Contingency.

               (b) The Stockholders’ Representative may in good faith object to the amounts set forth in the
Agreed Contingency Payment Notice based solely on one or more of the following grounds: (i) that the
liability described in the Agreed Contingency Payment Notice is not listed on Section 9.15(i) to Vowel
Disclosure Schedule, (ii) that Holdco has failed to properly
calculate Vowel’s portion of the Agreed Contingency in accordance with Section 5.23(c) of the Merger Agreement, (iii) in the case
of an expense incurred to defend or settle an Agreed Contingency, that such expense is not a
reasonable documented out-of-pocket expense incurred after the Effective Time that reasonably
relates to an Agreed Contingency listed on Section 9.15(i) to Vowel Disclosure Schedule
and/or (iv) that the Agreed Contingency Payment Notice does not contain the information required by
Section 3.1(a). The Stockholders’ Representative shall deliver written notice of such
objection (a “AC Objection Notice”) to the Escrow Agent and Holdco within ten (10) Business
Days after an Agreed Contingency Payment Notice was received by it in accordance with the terms of
Sections 3.1(a) and 13 of this Agreement, which notice must set forth in reasonable
detail an explanation as to why one or more of the enumerated grounds for objection set forth above
is applicable and a calculation of the amount of the Agreed Contingency that it reasonably
believes should apply, if any (the “AC Agreed Upon Amount”) to the extent that such amount
is less than the applicable AC Payment Amount; provided, however, if the
Stockholders’ Representative shall fail to timely deliver an AC Objection Notice in accordance with
this sentence (which notice must include such detail as is required by this paragraph), it shall
have thereupon irrevocably waived any right to object to such Agreed Contingency Payment Notice. On the
date that is eleven (11) Business Days after receipt by the Escrow Agent of the Agreed Contingency
Payment Notice, the Escrow Agent shall pay Holdco from the CVR Escrow
Account the AC Payment Amount
shown in the applicable Agreed Contingency Payment Notice unless the Escrow Agent shall have timely
received an AC Objection Notice from the Stockholders’

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Representative (which notice must have included such detail as is required by this paragraph),
in which case, the Escrow Agent shall (x) pay Holdco from the CVR Escrow Account the AC Agreed Upon
Amount, if any, shown in the applicable AC Objection Notice (if any) and (y) delay the payment of
the difference between the applicable AC Payment Amount and the corresponding AC Agreed Upon Amount
(such difference, which represents the amount which has been disputed by the Stockholders’
Representative pursuant to this Section 3.1(b), is herein referred as a “AC Disputed
Amount”) until such AC Objection Notice has been resolved in accordance with Section
3.7 of this Agreement. The Escrow Agent will deduct payments first from principal and second
on interest on any payments made from the CVR Escrow Fund.

               3.2 Payment of Documented Costs.

               (a) If at any time or from time to time, Holdco determines in good faith that it is entitled
to any amounts from the CVR Escrow Fund as a result of any Vowel Tax Refund Documented Costs in
accordance with Section 5.22(b) of the Merger Agreement it shall give written notice (a
“Documented Cost Payment Notice”) to the Escrow Agent and the Stockholders’ Representative
of such withdrawal to be made from the CVR Escrow Fund, which notice shall include the following:
(i) a calculation of the amount of the Vowel Tax Refund Documented Costs to be released from the
CVR Escrow Fund (each, a “DC Payment Amount”), and (ii) reasonable evidence (in the form of
a bill, assessment, notice, a reasonably detailed invoice, receipt or other writing) that the
amount of such Vowel Tax Refund Documented Costs has been paid or is due and payable, provided that
any bill, invoice, receipt or other evidence relating to fees and expenses shall contain reasonable
detail regarding such fees and expenses.

               (b) The Stockholders’ Representative may in good faith object to the amounts set forth in the
Documented Cost Payment Notice based solely on the grounds that (i) any of the Vowel Tax Refund
Documented Costs is not a reasonable documented out-of-pocket cost, expense or liability incurred
by Holdco or any of its Subsidiaries after the Effective Time that reasonably relates to obtaining
the Vowel Tax Refunds or (ii) the Documented Cost Payment Notice does not contain the information
required by Section 3.2(a). The Stockholders’ Representative shall deliver written notice
of such objection (a “DC Objection Notice”) to the Escrow Agent and Holdco within ten (10)
Business Days after a Documented Cost Payment Notice was received by it in accordance with the
terms of Sections 3.2(a) and 13 of this Agreement, which notice must set forth in
reasonable detail an explanation as to why any such Vowel Tax Refund Documented Costs is not
reasonable or otherwise applicable to the subject Vowel Tax Refund and a calculation of the amount
of the Vowel Tax Refund Documented Costs that it reasonably believes should apply, if any (the
“DC Agreed Upon Amount”) to the extent that such amount is less than the applicable DC
Payment Amount; provided, however, if the Stockholders’ Representative shall fail
to timely deliver a DC Objection Notice in accordance with this sentence (which notice must include
such detail as is required by this paragraph), it shall have thereupon irrevocably waived any right
to object to such Documented Cost Payment Notice. On the date that is eleven (11) Business Days
after receipt by the Escrow Agent of the Documented Cost Payment Notice, the Escrow Agent shall pay
Holdco from the CVR Escrow Account the DC Payment Amount shown in the

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applicable Documented Cost Payment Notice unless the Escrow Agent shall have timely received a
DC Objection Notice from the Stockholders’ Representative, in which case, the Escrow Agent shall
(x) pay Holdco from the CVR Escrow Account the DC Agreed Upon Amount, if any, shown in the
applicable DC Objection Notice and (y) delay the payment of the difference between the applicable
DC Payment Amount and the corresponding DC Agreed Upon Amount (such difference, which represents
the amount which has been disputed by the Stockholders’ Representative pursuant to this Section
3.2(b), is herein referred as a “DC Disputed Amount”) until such DC Objection Notice
has been resolved in accordance with Section 3.7 of this Agreement. The Escrow Agent will
deduct payments first from principal and second on interest on any payments made from the CVR
Escrow Fund.

               3.3 Withdrawal of Amounts from the 280G Escrow Fund.

               (a) If, at any time or from time to time prior to October 15, 2013 (the “280G Termination
Date”), Surratt has delivered to the Escrow Agent and Holdco a written notice, duly notarized,
from Surratt substantially in the form of Exhibit A attached hereto (the “280G Payment
Notice”) it shall, within five (5) Business Days after receipt of such notice, pay to Surratt
the amount set forth in the 280G Payment Notice by wire transfer of immediately available funds to
the account set forth on the 280G Payment Notice. The 280G Payment Notice will include the name of
the bank to which such payments shall be made, account name at the bank, account number at the bank
to which such payments shall be made, ABA routing number of the bank and any further credit
instructions for payment to the account. For the avoidance of doubt, if Surratt has timely
executed and delivered the 280G Payment Notice in the form of Exhibit A (without
substantive modification thereto and without any modification to Section 4 thereof), no party shall
have the right to dispute or contest the payment to Surratt in accordance with this Section
3.3; provided, however, if Surratt substantively modifies the 280G Payment
Notice or makes any modification to Section 4 thereof, then, Holdco shall be entitled to deliver a
written notice to Surratt and the Escrow Agent objecting thereto within ten (10) Business Days
after receipt of the 280G Payment Notice (such objection notice being referred to as the
“Holdco 280G Objection Notice”), and the Escrow Agent shall delay funding such 280G Payment
Notice until the sooner of (x) Surratt rescinds the modified notice and re-submits a new 280G
Payment Notice, within ten (10) Business Days after receipt of the Holdco 280G Objection Notice,
without such modifications, or (y) Surratt and Holdco deliver a written payment instruction
executed by both of them to the Escrow Agent, within ten (10) Business Days after receipt of the
Holdco 280G Objection Notice, directing the funding of such 280G Payment Notice.

               (b) If and to the to the extent that: (i) on the 280G Termination Date, any amounts remain in
the 280G Escrow Account and Surratt has not timely delivered a 280G Payment Notice (in accordance
with and subject to the last sentence in Section 3.3(a) including its proviso) with respect
to such then remaining escrow funds, or (ii) at any time on or prior to the 280G Termination Date,
Surratt delivers a written, notarized, confirmation to the Escrow Agent that he is the beneficiary
of an insurance policy with respect to any potential liability which may be incurred by him in
connection

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with the Tax Gross-Up Obligations (the “280G Insurance Policy Notice”), then, in the
absence of the receipt by the Escrow Agent of a Holdco 280G Payment Notice (as hereinafter
defined), the Escrow Agent shall on the eleventh (11th) Business Day after (x) the 280G
Termination Date or (y) the date it received the 280G Insurance Policy Notice, as the case may be,
pay to the Rights Agent, in immediately available funds, all of the 280G Escrow Fund then remaining
in the 280G Escrow Account less the amount of the payment to be made pursuant to any then
unpaid 280G Payment Notice in accordance with Section 3.3(a) (such net amount, the
“280G Escrow Fund Balance”).

               (c) If there exists both a 280G Excess Amount as of the Closing and a 280G Escrow Fund Balance
on the 280G Termination Date or the date Holdco received the 280G Insurance Policy Notice, as the
case may be, Holdco shall give written notice (the “Holdco 280G Payment Notice”) to the
Escrow Agent and the Stockholders’ Representative within ten (10) Business Days after such date,
setting forth (i) the 280G Excess Amount and (ii) directing the Escrow Agent to pay to (A) Holdco
an amount equal to the lesser of the 280G Excess Amount and the 280G Escrow Fund Balance (such
amount, the “Holdco 280G Payment Amount”), and (B) the Rights Agent the amount, if any, of
the 280G Escrow Fund Balance (including all interest, dividends or profit on or proceeds or other
income earned thereon) after giving effect to the payment of the 280G Excess Amount (the amount to
be paid to the Right Agents pursuant to Section 3.3(b) or this Section 3.3(c), as
the case may be, the “280G Returned Amount”), and the Stockholders’ Representative shall
have the right, within ten (10) Business Days after receipt of the Holdco 280G Payment Notice, to
object to the calculations set forth in the Holdco 280G Payment Notice, by written notice delivered
to the Escrow Agent and Holdco, solely on account of a mathematical error. On the date that is
eleven (11) Business Days after receipt by the Escrow Agent of the Holdco 280G Payment Notice,
unless the Escrow Agent has received an objection notice from the Stockholders’ Representative in
accordance with the preceding sentence, the Escrow Agent shall pay (x) Holdco from the 280G Escrow
Fund the Holdco 280G Payment Amount, and (y) to the extent any amounts remain in the 280G Escrow
Account after the making of the Holdco 280G Payment Amount, the Rights Agent from the 280G Escrow
Fund the entire amount remaining in the 280G Escrow Account including all interest, dividends or
profit on or proceeds or other income earned thereon. Notwithstanding anything to contrary set
forth in this Section 3.3(c), if Holdco fails to deliver the Holdco 280G Payment Notice
within the time period contemplated above in this paragraph, then the Stockholders’ Representative
shall have the right, but not the obligation, to deliver such Holdco 280G Payment Notice, whereupon
Holdco shall have the same objection rights as are contemplated in this paragraph for the
Stockholders’ Representative.

               (d) The Escrow Agent will deduct payments made pursuant to this Section 3.3 first from
principal and second on interest on any payments made from the 280G Escrow Fund.

               (e) By executing and delivering this Agreement, Surratt hereby acknowledges and agrees, that
in consideration for the deposit by Vowel with the Escrow Agent into the 280G Escrow Account of the
sum of $3,000,000 pursuant to Section 5.24

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of the Merger Agreement, he hereby releases and forever discharges Holdco, Vowel, each of
their respective subsidiaries and affiliates, and each of the foregoing’s respective successors,
assigns, officers, directors, shareowners, members, managers, agents and employees (collectively,
the “Released Parties”), of and from any and all liabilities, debts, obligations, promises,
covenants, agreements, contracts, controversies, suits, actions, causes of action, judgments,
executions, damages, claims or demands in law or in equity, known or unknown, liquidated or
contingent, material or immaterial, from the beginning of time to the present relating to the Tax
Gross-Up Obligations (each, a “Claim”), which Surratt, his heirs, successors, personal
representatives, estate or devisees has or may have against the Released Parties, or any of them,
including those Claims relating to the Tax Gross-Up Obligations that Surratt is unaware of.
Surratt hereby represents and warrants that the deposit of the foregoing sum satisfies in full all
of Holdco’s and Vowel’s and each of their respective Subsidiaries obligations with respect to any
claim he may have against any of them solely relating to Sections 4999 and 280G of the Code.

               3.4 Working Capital Adjustment.

               (a) If, in accordance with the terms and conditions of Section 5.27 of the Merger Agreement,
Holdco becomes entitled to receive a Working Capital Adjustment, Holdco shall have the right at any
time to give written notice (the “WC Payment Notice”) to the Escrow Agent and the
Stockholders’ Representative of such withdrawal to be made from the CVR Escrow Fund, which notice
shall set forth the amount of the Working Capital Adjustment to be withdrawn from the CVR Escrow
Fund (the “WC Payment Amount”) and, with respect to any amounts contemplated in clause (z)
of the definition of Working Capital Adjustment (such amounts, “WC Costs”), to the extent
not expressly set forth in the Working Capital Award, reasonable evidence (in the form of a bill,
assessment, notice, invoice, receipt or other writing) that the amount of such fees or expenses has
been paid or is due and payable, provided that any bill, invoice, receipt or other evidence
relating to fees and expenses shall contain reasonable detail regarding such fees and expenses.

               (b) The Stockholders’ Representative may in good faith object to the amounts described in
clause (y) of the definition of Working Capital Adjustment set forth in the WC Payment Notice based
solely on one or more of the following grounds: (i) the Working Capital Dispute has not been
resolved in accordance with the terms and conditions of the Merger Agreement, (ii) the amount set
forth in the WC Payment Notice does not equal the amount of the payment to be paid pursuant to a
Working Capital Adjustment as determined in accordance with the terms of the Merger Agreement or
(iii) solely with respect to WC Costs to the extent such WC Costs are not expressly set forth in
the Working Capital Award, the WC Payment Notice does not contain the information required by
Section 3.4(a). The Stockholders’ Representative shall deliver written notice of such
objection (the “WC Objection Notice”) to the Escrow Agent and Holdco within ten (10)
Business Days after a WC Payment Notice was received by it in accordance with the terms of
Sections 3.4(a) and 13 of this Agreement, which notice must set forth the grounds
for such objection and, to the extent that such objection is to the calculation of the WC Payment
Amount, a calculation of the amount of the Working Capital Adjustment it reasonably believes should
be withdrawn from the

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CVR Escrow Fund, if any (the “WC Agreed Upon Amount”), to the extent that such amount
is less than the WC Payment Amount; provided, however, if the Stockholders’
Representative shall fail to timely deliver a WC Objection Notice in accordance with this sentence,
it shall have thereupon irrevocably waived any right to object to the WC Payment Notice. On the
date that is eleven (11) Business Days after the receipt by the Escrow Agent of the WC Payment
Notice, the Escrow Agent shall pay Holdco from the CVR Escrow Account the WC Payment Amount shown
in the WC Payment Notice unless the Escrow Agent shall have timely received the WC Objection Notice
from the Stockholders’ Representative, in which case, the Escrow Agent shall (x) pay Holdco from
the CVR Escrow Account the WC Agreed Upon Amount, if any, shown in the WC Objection Notice and (y)
delay the payment of the difference between the applicable WC Payment Amount and the WC Agreed Upon
Amount (such difference, which represents the amount which has been disputed by the Stockholders’
Representative pursuant to this Section 3.4(b), is herein referred as the “WC Disputed
Amount”) until the WC Objection Notice has been resolved in accordance with Section 3.7
of this Agreement. The Escrow Agent will deduct payments first from principal and second on
interest on any payments made from the CVR Escrow Fund.

               3.5 Withdrawals by Stockholders’ Representative.

               (a) At any time and from time to time as it deems appropriate, the Stockholders’
Representative may provide written notice (“Expense Notice”) to Holdco and the Escrow Agent
that it desires to withdraw funds from the CVR Escrow Fund and/or the Excess Employee Payment Fund
for the purpose of paying reasonable compensation to, or any reasonable out-of-pocket fees or
expenses of, the Stockholders’ Representative pursuant Article VIII of the Merger Agreement, as
well as the reasonable fees and expenses of any attorneys, agents or other third parties engaged by
the Stockholders’ Representative in connection with the performance of its duties or exercise of
its rights hereunder, under the Merger Agreement or any other Transaction Document (in each case,
as contemplated by Article VIII of the Merger Agreement).

               (b) Each Expense Notice shall contain (i) a detailed description of the purpose and amount of
such withdrawal (each, an “Expense Payment Amount”), together with reasonable evidence (in
the form of a bill, assessment, notice, invoice, receipt or other writing) that the amount of such
fees or expenses has been paid or is due and payable, provided that any bill, invoice, receipt or
other evidence relating to fees and expenses shall contain reasonable detail regarding such fees
and expenses, and (ii) reasonable evidence that such out-of-pocket costs or expenses were incurred
by Stockholders’ Representative in accordance with Article VIII of the Merger Agreement or in
connection with the performance of its duties or exercise of its rights hereunder, under the Merger
Agreement or any other Transaction Document (in each case, as contemplated by Article VIII of the
Merger Agreement). Within five (5) Business Days after receipt of such Expense Notice, the Escrow
Agent, without any approval, direction or other action of Holdco or Vowel, shall remit the amounts
set forth in the Expense Notice to the Stockholders’ Representative by wire transfer of immediately
available funds from the CVR Escrow Fund or the Excess Employee Payment Fund. The Expense

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Notice will include the name of the bank to which such payments shall be made, account name at
the bank, account number at the bank to which such payments shall be made, ABA routing number of
the bank and any further credit instructions for payment to the account. The Escrow Agent will
deduct payments first from principal and second on interest on any payments made from the CVR
Escrow Fund and/or the Excess Employee Payment Funds, as applicable.

               3.6 CVR Payments

               (a) First CVR Payment. Within ten (10) Business Days after the First CVR Payment
Event Date, Holdco shall give written notice to the Escrow Agent and the Stockholders’
Representative calculating in reasonable detail the First CVR Payment Amount (the “First CVR
Payment Notice”). On or prior to the second Business Day following receipt of the First CVR
Payment Notice, the Escrow Agent shall pay the Rights Agent from the CVR Escrow Account the First
CVR Payment Amount shown in the First CVR Payment Notice, including all interest, dividends or
profit on or proceeds or other income earned thereon. If the Stockholders’ Representative shall
object to the calculation of the First CVR Payment Amount or any elements of such First CVR Payment
Amount set forth in the First CVR Payment Notice (x) on account of mathematical error, (y) on
account of a failure to include any Vowel Tax Refunds or the applicable portion of Vowel Shared Tax
Offset Amounts received by Vowel or its Subsidiaries after the Effective Time and on or before the
First CVR Payment Event Date, or (z) on the grounds that any Recoupment Amount included in the
First CVR Payment Notice either has been paid or no notice for such Recoupment Amount has been
delivered under this Section 3, or on any other grounds that would be permissible under
Sections 3.1, 3.2, 3.3 or 3.4, as applicable, then the
Stockholders’ Representative shall deliver a reasonably detailed written notice of such objection
(the “First CVR Objection Notice”) to the Escrow Agent and Holdco within twenty (20)
Business Days after the First CVR Payment Notice was received by it in accordance with the terms of
this Section 3.6(a) and Section 13 of this Agreement, which notice must set forth a
calculation of the additional amount that it reasonably believes should be paid to the Rights Agent
(the “First CVR Disputed Amount”); provided, however, if the Stockholders’
Representative shall fail to timely deliver the First CVR Objection Notice in accordance with this
sentence (which notice must include such detail as is required by this paragraph), it shall have
thereupon irrevocably waived any right to object to such First CVR Payment Notice. If any portion
of the First CVR Disputed Amount is determined to be payable as a result of the dispute resolution
procedure in Section 3.7 of this Agreement, then such amount shall be paid to the Rights
Agent within five (5) Business Days after resolution of the dispute, unless the Stockholders
Representative (in its sole and absolute discretion) has previously elected by written notice to
the Escrow Agent to defer such payment until the Second CVR Payment Event Date. Notwithstanding
anything to contrary set forth in this Section 3.6(a), to the extent that Holdco fails to
deliver the First CVR Payment Notice by the 10th Business Day after the First CVR
Payment Event Date, then the Stockholders’ Representative shall have the right at any time after
such 10th Business Day, but not the obligation, to deliver such First CVR Payment
Notice, whereupon Holdco shall have the right to deliver the First CVR

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Objection Notice within twenty (20) Business Days after the First CVR Payment Notice was
received by it in accordance with the terms of this Section 3.6(a) and Section 13
of this Agreement. The First CVR Payment Notice will include the name of the bank to which such
payments shall be made, account name at the bank, account number at the bank to which such payments
shall be made, ABA routing number of the bank and any further credit instructions for payment to
the account. The Escrow Agent will deduct payments first from principal and second on interest on
any payments made from the CVR Escrow Fund.

               (b) Second CVR Payment. Within ten (10) Business Days after the Second CVR Payment
Event Date, Holdco shall give written notice to the Escrow Agent and the Stockholders’
Representative calculating in reasonable detail the Second CVR Payment Amount (the “Second CVR
Payment Notice”, and together with each Agreed Contingency Payment Notice, each Documented Cost
Payment Notice, the 280G Payment Notice, the Holdco 280G Payment Notice, the WC Payment Notice,
each Expense Notice and the First CVR Payment Notice, the “Payment Notices”, and each a
“Payment Notice”). On or prior to the second Business Day after receipt of the Second CVR
Payment Notice, the Escrow Agent shall pay the Rights Agent from the CVR Escrow Account the Second
CVR Payment Amount shown in the Second CVR Payment Notice, plus all interest, dividends or profit
on or proceeds or other income earned thereon. If the Stockholders’ Representative shall object to
the calculation of the Second CVR Payment Amount set forth in the Second CVR Payment Notice (x) on
account of mathematical error, (y) on account of a failure to include any Vowel Tax Refunds or the
applicable portion of Vowel Shared Tax Offset Amounts received by Vowel or its Subsidiaries after
the Effective Time and on or before the Second CVR Payment Event Date, or (z) on the grounds that
any Recoupment Amount included in the Second CVR Payment Notice either has been paid or no notice
for such Recoupment Amount has been delivered under this Section 3, or on any other grounds
that would be permissible under Sections 3.1, 3.2, 3.3 or 3.4, as
applicable, then the Stockholders’ Representative shall deliver a reasonably detailed written
notice of such objection (the “Second CVR Objection Notice”, and together with each AC
Objection Notice, each DC Objection Notice, the WC Objection Notice and the First CVR Objection
Notice, the “Objection Notices”, and each an “Objection Notice”) to the Escrow
Agent and Holdco within twenty (20) Business Days after the Second CVR Payment Notice was received
by it in accordance with the terms of this Section 3.6(b) and Section 13 of this
Agreement, which notice must set forth a calculation of the additional amount that it reasonably
believes should be paid to the Rights Agent (the “Second CVR Disputed Amount”);
provided, however, if the Stockholders’ Representative shall fail to timely deliver
the Second CVR Objection Notice in accordance with this sentence (which notice must include such
detail as is required by this paragraph), it shall have thereupon irrevocably waived any right to
object to such Second CVR Payment Notice. If any portion of the Second CVR Disputed Amount is
determined to be payable as a result of the dispute resolution procedure in Section 3.7 of
this Agreement, then such amount shall be paid to the Rights Agent within five (5) Business Days
after resolution of the dispute. Notwithstanding anything to contrary set forth in this
Section 3.6(b), to the extent that Holdco fails to deliver the Second CVR Payment Notice by
the 10th Business Day after the Second CVR Payment

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Event Date, then the Stockholders’ Representative shall have the right at any time after such
10th Business Day, but not the obligation, to deliver such Second CVR Payment Notice,
whereupon Holdco shall have the right to deliver the Second CVR Objection Notice within twenty (20)
Business Days after the Second CVR Payment Notice was received by it in accordance with the terms
of this Section 3.6(b) and Section 13 of this Agreement. The Second CVR Payment
Notice will include the name of the bank to which such payments shall be made, account name at the
bank, account number at the bank to which such payments shall be made, ABA routing number of the
bank and any further credit instructions for payment to the account. The Escrow Agent will deduct
payments first from principal and second on interest on any payments made from the CVR Escrow Fund.

               (c) Subsequent CVR Payment. If any funds remain in the CVR Escrow Account after the
payments, if any, made from the CVR Escrow Fund pursuant to Section 3.6(b), then, to the
extent such funds are subject to an Objection Notice, they shall remain in the CVR Escrow Account
until such Objection Notice(s) is/are resolved in accordance with Section 3.7 of this
Agreement. Upon resolution of the last such Objection Notice(s) in accordance with this Agreement,
all such funds then remaining in the CVR Escrow Account shall promptly be paid either to the Rights
Agent for further payment pursuant to the CVR Agreement in accordance with such resolution (if any,
the “Subsequent CVR Payment Amount”) or to Holdco, as the case may be. Any payment notice
given in connection with directing any such further payment will include the name of each bank to
which such payments shall be made, account name at such bank, account number at the bank to which
such payments shall be made, ABA routing number of such bank and any further credit instructions
for payment to such account.

               (d) Treatment of Excess Employee Payment Fund. Holdco and the Stockholders’
Representative hereby acknowledge and agree that the Excess Employee Payment Fund has been included
in the calculation of the First CVR Payment Amount and the Second CVR Payment Amount solely for
purposes of convenience and shall not be deemed as part of the CVR Escrow Fund. If, at any time or
from time to time after the date hereof and prior to the full distribution of the Excess Employee
Payment Fund, the Stockholders’ Representative (in its sole and absolute discretion) desires to
direct all or any portion of the Excess Employee Payment Fund to the Rights Agent for payment to
the holders of the CVRs, Holdco shall promptly execute a joint direction letter to the Escrow Agent
with respect to such payment and shall not have any right to object to such payment.

               3.7 Resolutions of Disputes.

               (a) If the Stockholders’ Representative (or Holdco pursuant to Section 3.6, as the
case may be) shall have timely delivered an Objection Notice in accordance with the terms of this
Agreement, then Holdco and the Stockholders’ Representative shall attempt to resolve the dispute
subject to such Objection Notice as promptly as possible. If Holdco and the Stockholders’
Representative resolve such dispute, they shall deliver to the Escrow Agent a joint written notice
(a “Settlement 

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Notice”) to that effect signed by a duly authorized representative of each of Holdco
and the Stockholders’ Representative. Such Settlement Notice shall direct the Escrow Agent to pay
from the CVR Escrow Fund to Holdco, the CVR Agent or retain the amount in the CVR Escrow Account,
if any, agreed to by both Holdco and the Stockholders’ Representative in settlement of such
dispute. If Holdco and the Stockholders’ Representative fail to resolve such dispute within thirty
(30) calendar days after receipt by Holdco (or the Stockholders’ Representative pursuant to
Section 3.6, as the case may be) of the Objection Notice corresponding to such dispute,
either party may at any time thereafter commence an arbitration in order to finally resolve such
dispute.

               (b) If Holdco or the Stockholders’ Representative commences arbitration pursuant to
Section 3.7(a), such dispute shall be resolved by arbitration administered by the American
Arbitration Association under its Commercial Arbitration Rules, and judgment on the Award (as
defined below) rendered by the arbitrators may be entered in any court having jurisdiction thereof.
The number of arbitrators shall be three. The arbitrators must be independent of each party,
meaning that neither they nor their current or past firm may have represented any party within the
five (5) years preceding their appointment. The arbitrators shall be lawyers or retired judges.
Within fifteen (15) days after the commencement of arbitration, each of Holdco and the
Stockholders’ Representative shall select one person to act as arbitrator, and the two selected
shall select a third arbitrator within fifteen (15) days of their appointment. If the arbitrators
selected by Holdco and the Stockholders’ Representative are unable or fail to agree upon the third
arbitrator, the third arbitrator shall be selected by the American Arbitration Association.

               (c) The arbitrators shall only have the power to construe this Agreement, the applicable
provisions of the Merger Agreement, the applicable provisions of the CVR Agreement and applicable
Law, solely for the purpose of determining whether and to whom payments are due in accordance with
this Agreement. The place of the arbitration shall be New York, New York. The arbitrators shall:
(a) commence the arbitration proceedings within ten (10) calendar days after the three arbitrators
have been appointed, and conduct any hearings as they shall reasonably determine, (b) require such
oral and written submissions as they reasonably determine; and (c) order a party to produce
business records or other documentation reasonably related to the given dispute that are within
such party’s possession and control as they reasonably determine. The arbitrators must issue their
written opinion within ninety (90) days of the commencement of the arbitration proceeding (the
“Award”), which Award shall specifically direct the Escrow Agent as to the payment of the
amount in dispute, and contain an assessment of the fees and costs of such arbitration (consisting
of the arbitrators’ reasonable fees and expenses, any amounts payable to the American Arbitration
Association, and each party’s reasonable documented out-of-pocket attorneys fees and expenses
incurred in connection with such arbitration) against the losing party.

               (d) Except as may be required by Law, neither a party nor an arbitrator may disclose the
existence, content or results of any arbitration hereunder without the prior written consent of
Holdco and the Stockholders’ Representative, except that either party may deliver a copy of the
Award to the Escrow Agent. If the Award

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assesses fees and expenses against Holdco in accordance with Section 3.7(c), then
Holdco shall promptly pay an amount equal to such fees and expenses to the Escrow Agent for deposit
into the CVR Escrow Account and such amount shall be added to the amount then payable from the CVR
Escrow Fund to the Rights Agent for distribution under the CVR Agreement. If the Award assesses
fees and expenses against the Stockholders’ Representative in accordance with Section
3.7(c), then the Escrow Agent shall promptly pay to Holdco from the CVR Escrow Fund, such fees
and expenses. Except as provided in the immediately preceding sentence, upon receipt of the Award,
the Escrow Agent shall promptly distribute funds from or retain funds in, as the case may be, the
CVR Escrow Fund in accordance with the Award, including all interest, dividends or profit on or
proceeds or other income earned thereon, less any fees and expenses paid pursuant to the
immediately preceding sentence.

               3.8 Certain Tax Matters.

               (a) The parties hereto hereby acknowledge and agree that, for tax reporting with respect to
federal, state and local taxes based on income, Holdco will be treated as the owner of each Escrow
Fund and will report all income, gain, loss, credit or deduction, if any, that is earned on, or
derived from or attributable to, any investment made from each such Escrow Fund as its income,
gain, loss, credit or deduction, in the taxable year or years in which such income tax item is
properly includible and pay any taxes attributable thereto, and as of the end of each calendar year
and, to the extent required by the U.S. Internal Revenue Service (the “IRS”), such income
shall be reported as having been earned by Holdco whether or not such income was disbursed during
such calendar year. Holdco will provide the Escrow Agent with an IRS Form W-9 concurrently with
its execution and delivery of this Agreement to comply with the Escrow Agent’s legal compliance
obligations. The parties hereto understand that if such tax reporting documentation is not
provided and certified to the Escrow Agent, the Escrow Agent may be required by the Code and the
rules and regulations of the IRS promulgated thereunder, to withhold a portion of any interest or
other income earned on the investment of the Escrow Funds.

               (b) Holdco shall be responsible for paying taxes (including any penalties and interest
thereon) on all interest and other income earned on any Escrow Fund pursuant to this Agreement and
for filing all necessary tax returns with respect to such income. None of Vowel, the Stockholders’
Representative, the holders of the CVRs (collectively, the “Holders”) or the Escrow Agent
shall have any obligation to file or prepare any tax returns or prepare any other reports for any
taxing authorities concerning matters covered by this Agreement with respect to income earned on
any Escrow Fund. The Escrow Agent shall have no responsibility to provide tax forms relating to
taxable transactions for claimants or closing payees.

               (c) To the extent that the Escrow Agent becomes liable for the payment of any taxes in respect
of income derived from the investment of any portion of the funds in an Escrow Fund, the Escrow
Agent shall satisfy such liability to the extent possible from such Escrow Fund. The parties
hereto hereby agree, severally and not jointly, to indemnify, defend and hold the Escrow Agent
harmless from and against any

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tax, late payment, interest, penalty or other cost or expense that may be assessed against the
Escrow Agent on or with respect to the Escrow Funds and the investment thereof unless such tax,
late payment, interest, penalty or other expense was directly caused by the gross negligence or
willful misconduct of the Escrow Agent. The indemnification provided by this Section
3.8(c) is in addition to the indemnification provided in Section 5.3 and shall survive
the resignation or removal of the Escrow Agent and the termination of this Agreement.

               (d) The Escrow Agent shall not be considered the payor with respect to payments made on
Holdco’s, the Stockholders’ Representative’s, the Holders’ or Surratt’s behalf and pursuant to any
Payment Notices, notice of an Award or similar disbursement or payment instructions. The Escrow
Agent shall not be considered the payor with respect to payments made on Holdco’s, the
Stockholders’ Representative’s, the Holders’ or Surratt’s behalf to non-resident aliens and,
accordingly, is not the “withholding agent” for purposes of the payments as that term is defined
under the rules and regulations of the IRS. The Escrow Agent has no direct knowledge of the
recipients of the payments and is not in a position to characterize the nature of the payments made
to recipients for tax purposes.

          4. Termination of Agreement. This Agreement shall become effective on the date hereof
and its term (the “Term”) shall continue until and terminate upon the full distribution of
all Escrow Funds pursuant to Section 3 hereof.

          5. Escrow Agent; Fees; Miscellaneous Matters Concerning Escrow Agent.

               5.1 The Escrow Agent shall be entitled to an administration fee of $2,500 and reimbursement of
its reasonable customary and documented out-of-pocket expenses including, but not by way of
limitation, the reasonable fees and costs of attorneys or agents which it may find necessary to
engage in the performance of its duties hereunder, all to be paid one half by Holdco and one half
from CVR Escrow Fund, and the Escrow Agent shall have, and is hereby granted, a prior lien upon any
property, cash, or assets of the Escrow Funds, as the case may be, with respect to its unpaid fees
and nonreimbursed expenses, superior to the interests of any other persons or entities. Except as
expressly provided in the immediately preceding sentence, the Escrow Agent does not have any
interest in the Escrow Funds deposited hereunder but is serving as escrow holder only and having
only possession thereof.

               5.2 The Escrow Agent agrees to hold and safeguard the Escrow Funds and to perform its duties
in accordance with the terms and provisions of this Agreement. Holdco, the Stockholders’
Representative and Surratt agree that the Escrow Agent does not assume any responsibility for the
failure of Holdco, the Stockholders’ Representative or Surratt to perform any of their respective
obligations in accordance with this Agreement, the Merger Agreement or any other agreement. The
acceptance by the Escrow Agent of its responsibilities hereunder is subject to the following terms
and conditions, which the parties hereto agree shall govern and control with respect to the Escrow
Agent’s rights, duties, liabilities and immunities:

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               (a) The Escrow Agent shall be protected in acting upon any written notice, consent, receipt or
other paper or document furnished to it, not only as to its due execution and validity and
effectiveness of its provisions but also as to the truth and accuracy of any information therein
contained, which the Escrow Agent believes to be genuine and what it purports to be. Should it be
necessary for the Escrow Agent to act upon any instructions, directions, documents or instruments
issued or signed by or on behalf of any corporation, fiduciary, or individual acting on behalf of
another party hereto, which the Escrow Agent in believes to be genuine, it shall not be necessary
for the Escrow Agent to inquire into such corporation’s, fiduciary’s or individual’s authority.
The Escrow Agent is also relieved from the necessity of satisfying itself as to the authority of
the persons executing this Agreement in a representative capacity.

               (b) The Escrow Agent shall not be liable for any error of judgment or for any act done or step
taken or omitted, or for any mistake of fact or law, or for anything which it may do or refrain
from doing in connection herewith, except for its own gross negligence, recklessness or willful
misconduct.

               (c) The Escrow Agent may consult with, and obtain advice from, legal counsel in the event of
any question as to any of the provisions hereof or the duties hereunder, and it shall incur no
liability and shall be deemed to be acting in accordance with the opinion and instructions of such
counsel. The reasonable costs of such counsel’s services shall be paid to the Escrow Agent in
accordance with Section 5.1 above and clause (f) of this Section 5.2. The
Escrow Agent may perform any and all of its duties through its agents, representatives, attorneys,
custodians, and/or nominees.

               (d) The Escrow Agent shall have no duties except those which are expressly set forth herein,
and it shall not be bound by the Merger Agreement, the CVR Agreement or any agreement of the other
parties hereto (whether or not it has any knowledge thereof) or by any notice of a claim, or demand
with respect thereto, or any waiver, modification, amendment, termination or rescission of this
Agreement, until received and acknowledged by an officer in its Shareowner Services department in
writing. The Escrow Agent shall have only those duties as are expressly provided herein, which
shall be deemed purely ministerial in nature, and shall under no circumstance be deemed a fiduciary
for any of the parties to this Agreement. The Escrow Agent shall neither be responsible for, nor
chargeable with, knowledge of the terms and conditions of any other agreement, instrument or
document between the other parties hereto, in connection herewith, including without limitation the
Merger Agreement or the CVR Agreement. This Agreement sets forth all matters pertinent to the
escrow contemplated hereunder, and no additional obligations of the Escrow Agent shall be inferred
from the terms of this Agreement or any other agreement. IN NO EVENT SHALL THE ESCROW AGENT BE
LIABLE, DIRECTLY OR INDIRECTLY, FOR ANY (i) DAMAGES OR EXPENSES ARISING OUT OF THE SERVICES
PROVIDED HEREUNDER, OTHER THAN DAMAGES WHICH RESULT FROM THE ESCROW AGENT’S FAILURE TO ACT IN
ACCORDANCE WITH THE STANDARDS SET FORTH IN THIS AGREEMENT, OR (ii) SPECIAL, INDIRECT OR

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CONSEQUENTIAL LOSSES OR DAMAGES, EVEN IF THE ESCROW AGENT HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH LOSSES OR DAMAGES.

               (e) In the event that any Escrow Account property shall be attached, garnished, or levied upon
by any court order, or the delivery thereof shall be stayed or enjoined by an order of a court, or
any order, judgment or decree shall be made or entered by any court order affecting the property
deposited under this Agreement, or any part thereof, the Escrow Agent is hereby expressly
authorized, in its sole discretion, to obey and comply with all writs, orders or decrees so entered
or issued, which it is advised by legal counsel of its own choosing is binding upon it, and in the
event that the Escrow Agent obeys or complies with any such writ, order, judgment or decree it
shall not be liable to any of the parties hereto or to any other Person by reason of such
compliance notwithstanding such writ, order, judgment or decree be subsequently reversed, modified,
annulled, set aside or vacated.

               (f) If the Escrow Agent becomes involved in litigation on account of this Agreement, it shall
have the right to retain counsel and shall be entitled to reimbursement for all reasonable
documented costs and expenses related thereto as provided in Sections 6.1 and
6.3(c) hereof; provided, however, that the Escrow Agent shall not be
entitled to any such reimbursement to the extent such litigation ultimately determines that the
Escrow Agent acted with gross negligence or willful misconduct.

               (g) In the event that conflicting demands are made upon the Escrow Agent for any situation not
addressed or addressed in this Agreement, the Escrow Agent may withhold performance of the terms of
this Agreement until such time as said conflicting demands shall have been withdrawn or the rights
of the respective parties shall have been settled by court adjudication, arbitration, joint order
or otherwise.

               (h) Any corporation or association into which the Escrow Agent may be converted or merged, or
with which it may be consolidated, or to which it may sell or transfer its corporate trust business
and assets as a whole or substantially as a whole, or any corporation or association resulting from
any such conversion, sale, merger, consolidation or transfer to which it is a party, so long as
such successor has capital and surplus of at least $5,000,000,000, shall be and become the
successor Escrow Agent hereunder and vested with all of the title to the whole property or trust
estate and all of the trusts, powers, immunities, privileges, protections and all other matters as
was its predecessor, without the execution or filing of any instrument or any further act, deed or
conveyance on the part of any of the parties hereto, anything herein to the contrary
notwithstanding.

               (i) The Escrow Agent shall not be liable for any action taken or not taken by it in accordance
with the direction or consent of the parties or their respective agents, representatives,
successors, or assigns. The Escrow Agent shall not be liable for acting or refraining from acting
upon any notice, request, consent, direction, requisition, certificate, order, affidavit, letter,
or other paper or document believed by it to be genuine and correct and to have been signed or sent
by the proper person or persons, without further inquiry into the person’s or persons’ authority.
Concurrently with the

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execution of this Agreement, the parties hereto shall deliver to the Escrow Agent authorized
signers’ forms in the form of Exhibits B-1, B-2 and B-3 to this Agreement.

               (j) The permissive rights of the Escrow Agent to do things enumerated in this Agreement shall
not be construed as duties.

               (k) No provision of this Agreement shall require the Escrow Agent to risk or advance its own
funds or otherwise incur any financial liability or potential financial liability in the
performance of its duties or the exercise of its rights under this Agreement.

               (l) This Agreement is subject to the parties of this Agreement passing all necessary
background, compliance and other required or best practice internal and/or mandated compliance
measures. The Escrow Agent reserves the right to terminate this Agreement if findings in a
compliance related background check or other source determine a reasonable cause eliminating
opportunity to continue relation and Escrow Agreement.

               5.3 Holdco, Vowel, the Stockholders’ Representative (solely to the extent of the CVR Escrow
Fund and the Excess Employee Payment Fund) and Surratt (solely to the extent of the 280G Escrow
Fund) hereby agree, severally and not jointly, to indemnify the Escrow Agent for and to hold it
harmless against any loss, liability or expense incurred without gross negligence, recklessness,
willful misconduct on the part of the Escrow Agent arising out of or in connection with its
performance under this Agreement. The obligations of Holdco, the Stockholders’ Representative and
Surratt set forth in this Section 5.3 shall survive the termination or assignment of this
Agreement and the resignation or removal of the Escrow Agent.

               5.4 Any tax returns required to be prepared and filed will be prepared and filed by the party
which is reported to have received such income with the IRS in all years income is earned, whether
or not income is received or distributed in any particular tax year (which party, in accordance
with Section 3.8, shall be Holdco), and the Escrow Agent shall have no responsibility for
the preparation and/or filing of any tax return with respect to any income earned by the Escrow
Funds. Any taxes payable on income earned from the investment of the Escrow Funds shall be paid by
the party which is reported to have received such income, whether or not the income was distributed
by the Escrow Agent during any particular year (which party, in accordance with Section
3.8, shall be Holdco). The Escrow Agent shall have no obligation to pay any taxes or estimated
taxes. After the Escrow Funds and the income earned thereon have been distributed by the Escrow
Agent, Holdco, the Stockholders’ Representative and Surratt agree to cooperate and to file any
amended reports which may be necessary in order to correct any filings with the IRS which reported
income as having been earned by a party which did not actually receive such income.

               5.5 Notwithstanding any provision herein to the contrary, the parties agree that the Escrow
Agent may interplead, should any controversy arise involving the parties hereto or any of them or
any other Person with respect to this

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Agreement or the Escrow Funds, or should a substitute escrow agent fail to be designated as
provided herein, or if the Escrow Agent should be in doubt as to what action to take, the Escrow
Agent shall have the right, but not the obligation, either to (a) withhold delivery of the
applicable Escrow Funds until the controversy is resolved, the conflicting demands are withdrawn or
its doubt is resolved or (b) institute a petition for interpleader in any court of competent
jurisdiction to determine the rights of the parties hereto. In the event the Escrow Agent is a
party to any dispute, the Escrow Agent shall have the additional right to refer such controversy to
binding arbitration. Should a petition for interpleader be instituted, or should the Escrow Agent
be threatened with litigation or become involved in litigation or binding arbitration in any manner
whatsoever in connection with this Agreement or any of the Escrow Funds, Holdco, Vowel and the
Stockholders’ Representative (solely to the extent of the CVR Escrow Funds and the Excess Employee
Payment Fund) each hereby agree to reimburse the Escrow Agent for one-half (1/2) of its reasonable
attorneys’ fees and any and all other expenses, losses, costs and damages incurred by the Escrow
Agent in connection with or resulting from such threatened or actual litigation or arbitration
prior to any disbursement hereunder any adverse claim or demand in the courts of the State of New
York and the United States District Court located in New York County, New York and the parties
agree to the jurisdiction of said Courts over their persons as well as the Escrow Funds.

               5.6 The Escrow Agent agrees that Holdco, Vowel, the Stockholders’ Representative and, to the
extent the 280G Escrow Fund has been established and funds remain in the 280G Escrow Account to
which Surratt is entitled, Surratt, may, by mutual written agreement executed by all of them
(including Surratt in the case of the 280G Escrow Account) at any time, remove the Escrow Agent as
escrow agent hereunder, and substitute another bank or trust company therefor, in which event, upon
receipt of written notice thereof, payment of any accrued but unpaid fees due the Escrow Agent, and
reimbursement of the Escrow Agent’s other fees and expenses, in accordance herewith, the Escrow
Agent shall account for and deliver to such substituted escrow agent the entire Escrow Funds, and
the Escrow Agent shall thereafter be discharged from all duties hereunder, except for its gross
negligence or willful misconduct.

          6. Entire Agreement. This Agreement, the Merger Agreement and the CVR Agreement
constitute the entire agreement among the parties with respect to the subject matter hereof and
supersede all prior agreements and undertakings, whether written or oral, with respect to the
subject matter hereof. Except for the Released Parties pursuant to Section 3.3 of this
Agreement, there are no express, implied or intended third party beneficiaries of this Agreement.
For the avoidance of doubt, none of the Holders or the Rights Agent shall be a beneficiary of this
Agreement.

          7. Amendment; Waiver. This Agreement may not be amended or modified except by an
instrument in writing signed by the Stockholders’ Representative, Holdco and the Escrow Agent. No
failure or delay by any party in exercising any right, power or privilege hereunder shall operate
as a waiver thereof.

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          8. Governing Law. This Agreement shall be governed by the laws of the State of New
York without regard for choice of law or conflicts of law principles thereof. Each party hereby
(a) irrevocably and unconditionally submits to the exclusive jurisdiction of the courts of the
State of New York and of the United States of America, in each case located in the State of New
York with respect to all actions and proceedings arising out of or relating to this Agreement or
the transaction contemplated hereby, (b) agrees that all claims with respect to any such action or
proceeding shall be heard and determined in such New York State or federal court and agrees not to
commence an action or proceeding relating to this Agreement or the transactions contemplated hereby
except in such courts, (c) irrevocably and unconditionally waives any objection to the laying of
venue of any action or proceeding arising out of this Agreement or the transactions contemplated
hereby and irrevocably and unconditionally waives the defense of an inconvenient forum, (d)
consents to service of process upon it by mailing or delivering such service to the address set
forth in Section 13 hereof, and (e) agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law.

          9. Assignment. Subject to the provisions of Section 5.2(h), this Agreement
shall not be assigned without the express written consent of the Stockholders’ Representative and
Holdco (which consent may be granted or withheld in the sole discretion of the Stockholders’
Representative and Holdco); provided that Holdco shall be entitled to assign this Agreement
to the same extent it is entitled to assign the Merger Agreement and the Stockholders
Representative shall be entitled to assign this Agreement to any successor in accordance with
Article VIII of the Merger Agreement. Notwithstanding the foregoing, no assignment of the interest
of any of the parties hereto shall be binding upon the Escrow Agent unless and until reasonable
written evidence of such assignment shall be delivered to the Escrow Agent.

          10. Counterparts. This Agreement may be executed in one or more counterparts, and by
the parties hereto in separate counterparts, each of which, when executed, shall be deemed to be an
original, but all of which taken together shall constitute one and the same agreement. The
exchange of copies of this Agreement and of signature pages by facsimile transmission or by
electronic transmission of portable document format (PDF) files or tagged image file format (TIF)
files shall constitute effective execution and delivery of this Agreement and may be used in lieu
of the originally executed Agreement for all purposes. Signatures of the parties transmitted by
facsimile or by electronic transmission of portable document format (PDF) files or tagged image
file format (TIF) files shall be deemed to be their original signatures for all purposes.

          11. Headings. The headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation of this Agreement.

          12. Severability. To the extent any provision of this Agreement is prohibited by or
invalid under the applicable law of any jurisdiction, such provision shall

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be ineffective only to the extent of such prohibition or invalidity and only in such
jurisdiction, without prohibiting or invalidating such provision in any other jurisdiction or the
remaining provisions of this Agreement in any jurisdiction.

          13. Notices. All notices, requests, consents and demands to or upon the respective
parties hereto will be in writing and will be deemed received (a) on the date of delivery if
delivered personally, (b) on the date that written confirmation of transmission is received if by
telecopy, facsimile or e-mail transmission of portable document format (PDF) files or tagged image
file format (TIF) files, provided that such written confirmation is received on a Business
Day on or prior to 3:00 p.m., New York City time, or if received after such time or on a day other
than a Business Day, then on the first Business Day thereafter, (c) on the first Business Day
following the date of dispatch if delivered by a recognized next-day courier service, or (d) on the
fifth Business Day following the date of mailing if delivered by registered or certified mail,
return receipt requested, postage prepaid. Any notice required to be delivered to more than one
party under this Agreement shall be delivered by such method(s) under this Section 13 to
ensure that all parties required to be recipients of said notice are deemed to have received such
notice on the same day pursuant to this Section 13. All notices hereunder must be
delivered as set forth below, or pursuant to instructions as may be designated in writing by the
party to receive such notice:

If to Holdco or Vowel, to:

c/o Veronis Suhler Stevenson

350 Park Avenue

New York, New York 10022

Attention: Scott J. Troeller

Tel: 212.381.8420

Fax: 212.381.8168

E-mail: troellers@vss.com

with a copy (which will not constitute notice) to:

Lowenstein Sandler PC

1251 Avenue of the Americas, 18th Floor

New York, New York 10020

Attention: Steven E. Siesser, Esq.

Tel: 212.204.8688

Fax: 973.597.2507

E-mail: ssiesser@lowenstein.com

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If to the Stockholders’ Representative, to:

Vowel Representative, LLC

c/o Perkins Coie LLP

131 South Dearborn Street, Suite 1700

Chicago, Illinois 60603

Attention: Phil Gordon, Esq.

Tel: 312.324.8600

Fax: 312.324.9400

E-mail: pgordon@perkinscoie.com

with a copy (which will not constitute notice) to:

Perkins Coie LLP

131 South Dearborn Street, Suite 1700

Chicago, Illinois 60603

Attention: Phil Gordon, Esq. and Jim Cruger, Esq.

Tel: 312.324.8600

Fax: 312.324.9400

E-mail: pgordon@perkinscoie.com

             jcruger@perkinscoie.com

If to Surratt, to:

Richard Surratt

Tel:

Fax:

E-mail:

If to the Escrow Agent, to:

Wells Fargo Bank, National Association

MAC N9311-115

625 Marquette Ave

11th Floor

Minneapolis, Minnesota 55402-2308

Attention: Aaron Soper

Tel: (612) 667-5628

Fax: (612) 667-2149

E-mail: aaron.soper@wellsfargo.com

          14. Service of Process. Any and all service of process shall be effective against any
party if given personally or by registered or certified mail, return receipt requested, or by any
other means of mail that requires a signed receipt, postage prepaid, mailed to such party as herein
provided. Nothing herein contained shall be

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deemed to affect the right of any party to serve process in any manner permitted by law or to
commence legal proceedings or otherwise proceed against any other party in any other jurisdiction.
No notice shall be effective under this Agreement unless given in a manner that complies with
Section 13 hereof.

          15. Certain Definitions. The following terms shall have the meanings ascribed
thereto:

               (a) “Business Day” means any day other than a Saturday, Sunday or other day on which
the Escrow Agent is not open for conducting business as an escrow agent, generally.

               (b) “Excess Employee Payment Amounts” has the meaning set forth in Section
5.24 of the Merger Agreement.

               (c) “First CVR Payment Amount” means an amount equal the sum of (A) 100% of the
aggregate amount held in the Excess Employee Payment Account as of the First CVR Payment Event
Date, plus (B) 50% of the excess, if any, of (x) the total amount held in the CVR Escrow
Account as of the First CVR Payment Event Date, minus (y) the then-unpaid portion of any
Recoupment Amount as of the First CVR Payment Event Date. For the avoidance of doubt, under no
circumstances shall any amounts in the Excess Employee Payment Fund be reduced or offset by any
amounts set forth in clause (y) in the preceding sentence.

               (d) “First CVR Payment Event Date” means the nine (9) month anniversary of the
Effective Time.

               (e) “Recoupment Amount” means an AC Payment Amount, DC Payment Amount, WC Payment
Amount or Expense Payment Amount, as such amounts are reflected in a notice given in accordance
with this Agreement, whether or not an Objection Notice has been delivered and whether or not the
period during which an Objection Notice may be delivered has expired.

               (f) “Second CVR Payment Amount” means an amount equal the (A) 100% of the aggregate
amount held in the Excess Employee Payment Account as of the Second CVR Payment Event Date
plus (B) the excess, if any, of (x) the total amount held in the CVR Escrow Account as of
the Second CVR Payment Event Date, minus (y) the then-unpaid portion of any Recoupment
Amount as of the Second CVR Payment Event Date. For the avoidance of doubt, under no circumstances
shall any amounts in the Excess Employee Payment Account be reduced or offset by any amounts set
forth in clause (y) in the preceding sentence.

               (g) “Second CVR Payment Event Date” means the eighteen (18) month anniversary of the
Effective Time.

               (h) “Specified Agreed Contingency” means the Agreed Contingencies identified in
Lines 5 and 6 of Section 9.15(i) of Vowel Disclosure Schedule.

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               (i) “Working Capital Adjustment” means the sum, if any, without duplication, of (x)
the payment to be made to Holdco pursuant to the mutual written agreement of Holdco and the
Stockholders Representative pursuant to Section 5.27(b) of the Merger Agreement, plus (y)
the amount set forth in the Working Capital Award (as that terms is defined in the Merger
Agreement), plus (z) without duplication of any amounts set forth in the Working Capital
Award or retained by Holdco pursuant to Section 5.27(e) of the Merger Agreement, any reasonable
documented out-of-pocket fees and expenses of the prevailing party as determined by the Independent
Accountant in accordance with Section 5.27(e) of the Merger Agreement.

[Remainder of Page Intentionally Left Blank]

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          IN WITNESS WHEREOF, the parties have executed this Escrow Agreement as of the date first above
written.

	 	 	 	 	 
	 	HOLDCO:

CAMBIUM HOLDINGS, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	VOWEL:

VOYAGER LEARNING COMPANY

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	STOCKHOLDERS’ REPRESENTATIVE:

VOWEL REPRESENTATIVE, LLC, as Stockholders’ Representative

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	SURRATT:

 	 
	 	
 	 
	 	Richard Surratt 	 
	 	 	 
	 
	 	ESCROW AGENT:

WELLS FARGO BANK, NATIONAL

ASSOCIATION, as Escrow Agent

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Escrow Agreement

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