Document:

Exhibit 10.1

CREDIT FACILITY
AGREEMENT AMENDMENT 2

This CREDIT FACILITY AGREEMENT
AMENDMENT 2 (“Amendment
2”) is made as of December 30,
2015 by and among TRANSCAT, INC. (“Borrower”), a corporation
formed under the laws of the State of Ohio with offices at 35 Vantage Point
Drive, Rochester, New York 14624, and MANUFACTURERS AND TRADERS TRUST COMPANY
(“Lender”), a New York banking corporation, with offices
at 255 East Avenue, Rochester, New York 14604. 

WHEREAS, Borrower and Lender
are parties to a Credit Facility Agreement dated September 20, 2012, as amended
by Credit Facility Agreement Amendment 1 dated August 26, 2014 (as amended,
modified and supplemented from time to time, the “Credit Agreement”), pursuant to which the Lender has made certain
loans and financial accommodations available to Borrower; 

WHEREAS, Borrower has
requested that the Lender amend the Credit Agreement to increase the limit of
permitted acquisitions, and the Lender is willing to accommodate Borrower's
request on the terms and conditions hereinafter set forth;

WHEREAS, Borrower is entering
into this Amendment 2 with the understanding and agreement that, except as
specifically provided herein, none of the Lender’s rights or remedies as set
forth in the Credit Agreement or any other Loan Document is being waived or
modified by the terms of this Amendment 2; 

NOW, THEREFORE, in
consideration of the agreements and provisions herein contained, effective on
the Amendment 2 Effective Date (defined below), the parties hereby agree as
follows: 

1. Definitions. Any capitalized term used but not otherwise defined in this Amendment 2
shall have the meaning ascribed to such term in the Credit Agreement, and the
interpretations set forth in the Credit Agreement shall apply to this Amendment
2. 

2. Amendments to Credit Agreement. Subject to Section 3 below, effective on the
Amendment 2 Effective Date, the
Credit Agreement is hereby amended as follows: 

(a) Section 1.1 of the Credit
Agreement is hereby amended to add the following definitions: 

“Amendment 2” means Credit Facility Agreement Amendment 2 made between Borrower and
Lender effective as of the Amendment 2 Effective Date. 

“Amendment 2 Effective Date” means December 30, 2015. 

(b) Section 1.1 of the Credit
Agreement is hereby amended to modify subsection (k) of the definition of
“Permitted Acquisition” to read in its entirety as follows: 

	                     	(k) 	no more than an aggregate of $17,000,000 for
      the Fiscal Year ending March 31, 2016, and $15,000,000 for each Fiscal
      Year ending thereafter, of Acquisitions shall have been financed, directly
      or indirectly, with the Revolving Credit
Facility.

3. Conditions to Effectiveness of this Amendment
2. This Amendment 2 is subject to
satisfaction of each of the following conditions to the satisfaction of the
Lender:

(a) The Lender shall have
received such Loan Documents as Lender may request, in form and substance
satisfactory to the Lender, including a Reaffirmation of Guaranties and Security
Agreements. 

(b) The Borrower shall have
delivered evidence satisfactory to the Lender of the due authorization,
execution, delivery and performance of Amendment 2 and the related Loan
Documents. 

(c) The Borrower shall have
delivered to the Lender a certificate of good standing from appropriate
governmental officials to the effect that it is validly subsisting in good
standing in its jurisdiction of formation. 

4. Representations and Warranties. In order to induce Lender to enter into this
Amendment 2 and take the other actions provided for herein, Borrower represents
and warrants to each Lender that the following statements are true and correct
in all respects: 

(a) Authority. Each of the Loan Parties has the requisite corporate power and
authority to execute and deliver this Amendment 2 and any other Loan Documents
delivered in connection therewith, and to perform its obligations hereunder and
under such Loan Documents (as amended or modified hereby) to which it is a
party. The execution, delivery and performance by each of the Loan Parties of
this Amendment 2 and the other Loan Documents delivered in connection herewith
have been duly approved by all necessary corporate or company action and no
other corporate or company proceedings are necessary to consummate such
transactions. 

(b) Enforceability. This Amendment 2 and the related Loan Documents
have been duly executed and delivered by the Loan Parties. This Amendment 2 and
the related Loan Documents are the legal, valid and binding obligations of the
Loan Parties, enforceable against each of them respectively in accordance with
their terms, and are in full force and effect. 

(c) Representations and Warranties. The representations and warranties contained in
the Credit Agreement and in this Amendment 2 are correct on and as of the date
hereof as though made on and as of the date hereof other than such
representations or warranties that, by their terms, are specifically made as of
a date other than the date hereof, all of which shall have been true and correct
as of the applicable stated date. 

(d) Litigation. Except as set forth on Schedule 4(d), as of the
date hereof there is no action, suit or proceeding at law or in equity by or
before any court or any Governmental
Authority pending or, to the knowledge of the Loan Parties threatened against or
affecting the Loan Parties. 

2 

(e) No Contravention. The execution, delivery and performance of this
Amendment 2 by the Borrower have received all necessary governmental approvals,
if any, and do not contravene any law of contractual restrictions binding on
Borrower. 

(f) No Default. No event has occurred and is continuing that constitutes a Default or
an Event of Default. 

5. General Confirmations and
Amendments. 

(a) Continuing Effect. Except as specifically provided herein, the
Credit Agreement and the other Loan Documents shall remain in full force and
effect in accordance with their respective terms and are hereby ratified and
confirmed in all respects. 

(b) No Waiver. The execution, delivery and effectiveness of this Amendment 2 shall
not, except as expressly provided herein, operate as a modification, acceptance
or waiver of any right, power or remedy of the Lender under any of the Loan
Documents, nor constitute a waiver of any provision of the Loan Documents,
except as specifically set forth herein. 

(c) Reference to and Effect on the Loan
Documents. Upon and after the
effectiveness of this Amendment 2, each reference in the Credit Agreement to
“this Agreement,” “hereunder,” “hereof” or words of like import referring to the
Credit Agreement, and each reference in the other Loan Documents to “the Credit
Agreement,” “thereof” or words of like import referring to the Credit Agreement,
shall mean and be a reference to the Credit Agreement as modified and amended
hereby. 

To the extent that any terms
and conditions in any of the Loan Documents shall contradict or be in conflict
with any terms or conditions of the Credit Agreement, after giving effect to
this Amendment 2, such terms and conditions are hereby deemed modified or
amended accordingly to reflect the terms and conditions of the Credit Agreement
as modified or amended hereby. 

6. Miscellaneous. 

(a) Governing Law. This Amendment 2 shall be governed by, and
construed in accordance with, the internal laws of the State of New York.

(b) Severability. The provisions of this Amendment 2 are
severable, and if any subsection or provision shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof, in
such jurisdiction and shall not in any manner affect such clause or provision in
any other jurisdiction, or any other clause or provision in this Amendment 2 in
any jurisdiction. 

3 

(c) Counterparts. This Amendment 2 may be executed in any number
of counterparts, each of which counterparts when executed and delivered shall be
an original, but all of which shall together constitute one and the same
instrument.

(d) Binding Effect; Assignment. This Amendment 2 shall be binding upon and inure
to the benefit of Borrower and the Lender and their respective successors and
assigns; provided, however, that the rights and obligations of Borrower under
this Amendment 2 shall not be assigned or delegated without the prior written
consent of the Lender. 

IN WITNESS WHEREOF, the
parties have caused this Amendment 2 to be executed by their duly authorized
representatives by their signatures below as of the date first above written.

[Signature Pages
Follow]

4 

MANUFACTURERS AND TRADERS
TRUST COMPANY 

	By:          	  /s/ Curt S. Provenzo	 
		  Curt
      S. Provenzo
		  Vice
      President

TRANSCAT, INC. 

	By:          	  /s/ John J. Zimmer	 
		  John
      J. Zimmer
		  Senior Vice President of
      Finance,
		  Chief
      Financial Officer and
		  Corporate
  Secretary

SCHEDULE 4(e)
LITIGATION

NoneExhibit 10.2

ASSET PURCHASE AGREEMENT

by and among

TRANSCAT, INC.,

SPECTRUM TECHNOLOGIES,
INC.

and

BRIAN E.
HUBLER AND
KENNETH E. HORVATH 

Dated as of December 31,
2015 

Table of Contents

	
      Article I. Definitions
	     	1
	       	1.1
      Definitions		1
		1.2 Accounting
      Terms		6
		1.3 Other
      Definitional Provisions		6
	 	 	 	 
	
      Article II. Purchase And Sale
		7
		2.1 Transfer of
      Purchased Assets		7
		2.2 Excluded
      Assets		8
		2.3 Use of
      Seller’s Name and Phone Numbers		8
		2.4 Purchase
      Price		8
		2.5 Payment of
      Purchase Price		8
		2.6 Closing Date
      Adjustment to Purchase Price		9
		2.7 Security
      Holdback		10
		2.8 Post-Closing
      Purchase Price Adjustment		11
	 	 	 	 
	Article III. Liabilities and
      Contracts
		12
		3.1 No Assumption
      of Liabilities or Contracts		12
		3.2 Contracts
      Assumed		12
	 	 	 	 
	
      Article IV. Seller’s And Shareholders’
      Representations And Warranties
		12
		4.1 Organization,
      Standing and Power		12
		4.2 Authority for
      Transaction		13
		4.3 No
      Conflict		13
		4.4 Financial
      Statements		13
		4.5 No
      Undisclosed Liabilities		14
		4.6 Absence of
      Certain Changes		14
		4.7
    Title		14
		4.8 Compliance
      with Laws; Permits		14
	 	4.9 Condition and
      Sufficiency of Purchased Assets		14
		4.10 Privacy Laws
      and Data Protection		15
		4.11 Accounts
      Receivable		15
		4.12
      Inventory		15
		4.13 Intellectual
      Property		15
		4.14 Assigned
      Contracts		16
		4.15 Other
      Contracts		16
		4.16 Legal
      Proceedings		16
		4.17 Tax
      Matters		17
		4.18
      Insurance		17
		4.19 Labor
      Relations and Employment Issues		17
		4.20 Employee
      Benefits		18
		4.21
      Environmental Matters		20
		4.22 Real
      Property		21
		4.23 Product and
      Service Warranties		22
		4.24 Relationship
      with Customers and Suppliers		22
		4.25 Officers,
      Directors and Shareholders		22
		4.26 Brokers and
      Finders		22

i 

	       	4.27 Material
      Misstatements or Omissions	     	22
	 	 	 	 
	
      Article V. Buyer’s Representations And
      Warranties
		22
		5.1 	Organization,
      Standing and Power		22
		5.2	Authority for Transaction		23
		5.3	No
    Conflict		23
		5.4	Legal Proceedings		23
	 	5.5	Brokers and
      Finders		23
		5.6	Material Misstatements or Omissions		23
	 	 	 	 	 
	
      Article VI. Survival And
      Indemnification
		24
		6.1	Survival or Representations, Warranties and
      Covenants		24
		6.2	Indemnification
      by Seller and Shareholders		24
		6.3	Indemnification by Buyer		24
		6.4	Limitations on
      Indemnification		25
		6.5	Indemnification Claim Procedures		26
		6.6	Recoupment
      Against Holdback		27
		6.7	Tax Treatment of Indemnification
      Payments		28
		6.8	Effect of
      Investigation		28
	 	 	 	 	 
	
      Article VII. Closing
		28
		7.1	Closing		28
		7.2	Closing Deliveries of Seller and
      Shareholders		28
		7.3	Closing
      Deliveries of Buyer		29
	 	 	 	 	 
	
      Article VIII. Further
Covenants
		30
		8.1	Taxes on
      Transaction		30
		8.2	Expenses of the Parties		30
		8.3	Confidentiality		30
		8.4	Non-Disclosure; Non-Solicitation and
      Non-Competition		30
		8.5	Employment of
      Shareholders		30
		8.6	Notices to and Consents of Third
    Parties		30
		8.7	Further
      Assurances		30
		8.8	Employees and COBRA Compliance		31
		8.9	Uncollected
      Receivables		31
	 	 	 	 	 
	
      Article IX. General Provisions
		31
		9.1	Amendment and
      Waiver		31
		9.2	Assignment		32
		9.3	Notices		32
		9.4	Binding Effect		32
		9.5	Governing Law;
      Venue		33
		9.6	Effect of Agreement		33
		9.7	Severability		33
		9.8	Negotiated Transaction		33
		9.9	Headings;
      Counterparts		33

ii

Asset Purchase Agreement

This Asset Purchase Agreement is entered into effective as of December 31, 2015,
by and among Transcat, Inc., an Ohio corporation (“Buyer”),
Spectrum Technologies, Inc., a
Pennsylvania corporation (“Seller”), and
Brian E. Hubler and
Kenneth E. Horvath (each
individually, a “Shareholder”, and
collectively, the “Shareholders”).
Buyer, Seller and the Shareholders are collectively referred to herein as the
“Parties”, and each is a “Party.” 

The Parties agree as follows:

ARTICLE I.
DEFINITIONS 

1.1 Definitions. As used in
this Agreement and, unless the context requires otherwise, in each other
agreement, document or instrument delivered under or in connection with this
Agreement:

“Accounts
Receivable” has the meaning
given to it in Section 2.1(d). 

“Action”
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry,
audit, notice of violation, proceeding, litigation, citation, summons, subpoena
or investigation of any nature, civil, criminal, administrative, regulatory or
otherwise, whether at law or in equity. 

“Adjustment
Amount” has the meaning given
to it in Section 2.8(a). 

“Adjustment
Year” means the one year
period beginning on January 1, 2016 and ending on December 31, 2016. 

“Adjustment Year
EBITDA” means the earnings
before interest, taxes, depreciation and amortization deriving from Buyer’s
conduct of the Business using the Purchased Assets during the Adjustment Year,
as all such items are determined in accordance with GAAP, if applicable, but
applied in a manner consistent with the EBITDA calculation derived from the
Financial Statements for the most recent fiscal year.

“Adverse
Effect” means an effect in
the condition (financial or otherwise), properties, assets, liabilities, rights,
obligations, Business or prospects of Seller, which effect, individually or in
the aggregate, is materially adverse to such condition, properties, assets,
liabilities, rights, obligations, operations, Business or prospects of Seller,
or which is materially adverse to Seller’s ability to consummate the
transactions contemplated hereby. 

“Affiliate” means,
with respect to a Party, any Person that directly or indirectly controls, is
controlled by, or under common control with, such Party. 

“Agreement” means this
Asset Purchase Agreement, together with all Exhibits and Schedules hereto.

“Assigned
Contracts” has the meaning
given to it in Section 2.1(f). 

“Assignment and
Assumption Agreement” has the
meaning given to it in Section 7.2(d). 

“Assumed Leases”
means the Existing Leases
that Buyer will assume at Closing, as identified in Schedule 2.1(f)

“Assumed
Liabilities” has the meaning
given to it in Section 3.2. 

“Basket”
has the meaning given to it
in Section 6.4(a). 

“Business” means
Seller’s business of providing commercial instrument calibration and test
equipment repair services and product sales.

“Buyer” has the
meaning given to it in the preamble. 

“Buyer Indemnified
Parties” has the meaning
given to it in Section 6.2.

“Cap”
has the meaning given to it
in Section 6.4(a).

“Closing” means the
closing of the purchase and sale hereunder.

“Closing
Date” means the date of the
Closing, as defined in Section 7.1. 

“Closing Date AR
Value” means the value, as of
the Closing Date, of the Accounts Receivable included in the Assets, as
determined in accordance with the provisions of Section 2.6.

“Closing Statement”
has the meaning given to it
in Section 2.4. 

“Closing Statement
Adjustment” has the meaning
given to it in Section 2.4. 

“COBRA” means the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended, Section
4980B of the Code, Title I Part 6 of ERISA, and any similar state group health
plan continuation Law. 

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

“Collection Period”
has the meaning given to it
in Section 8.9.

“Contracts” means and
includes all contracts, subcontracts, agreements, leases, options, notes, bonds,
mortgages, indentures, deeds of trust, collateral assignments of lease and
rights, guarantees, warranties, licenses, franchises, permits, purchase orders,
arrangements, transactions, commitments, undertakings and understandings of
every kind, written or oral. 

“Customer” has the meaning given to it in Section 4.24.

“Customer Contracts”
means and includes those
Contracts between the Seller and certain Customers which set forth the general
terms and conditions under which calibrations, repair services, and purchases
are made on an ongoing basis for multiple jobs or sites for that Customer with,
or without, subsequent quotes and purchase orders with respect to each job or
site.

2

“Customer Purchase
Orders and Quotes” means and
includes the Contracts with Customers that are documented by quotes from Seller
and related purchase orders from the Customer for which there is not a separate
Customer Contract and which include work that is done on an annual or other
periodic basis for the Customer or which may be for a one-time job or a
periodically scheduled job. 

“Deemed Acceptance”
has the meaning given to it
in Section 6.5(b).

“Dispute
Notice” has the meaning given
to it in Section 6.5(b).

“EBITDA Holdback
Amount” has the meaning given
to it in Section 2.8(c).

“Employee Benefit
Plan” has the meaning given
to it in Section 4.20.

“Employment Confirmation
Letter” has the meaning given
to it in Section 8.5.

“Encumbrances” means
and includes all liens, options, pledges, mortgages, security interests,
charges, adverse claims, rights, restrictions, burdens and encumbrances of every
kind.

“Environmental
Laws” means any applicable
Law, and any Governmental Order or binding agreement with any Governmental
Authority: (a) relating to pollution (or the cleanup thereof) or the protection
of natural resources, endangered or threatened species, human health or safety,
or the environment (including ambient air, soil, surface water or groundwater,
or subsurface strata); or (b) concerning the presence of, exposure to, or the
management, manufacture, use, containment, storage, recycling, reclamation,
reuse, treatment, generation, discharge, transportation, processing, production,
disposal or remediation of any Hazardous Substance.

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

“ERISA
Affiliate” means any Person
that is a member of “controlled group of corporations” with, or is under “common
control” with, or is a member of the same “affiliated service group” with
Seller, as defined in Section 414 of the Code. 

“Estimated Closing Date
AR Value” has the meaning
given to it in Section 2.6(a).

“Estimated Increase
Amount” has the meaning given
to it in Section 2.6(a).

“Estimated Reduction
Amount” has the meaning given
to it in Section 2.6(a).

“Excluded
Assets” has the meaning given
to it in Section 2.2. 

“Existing
Leases” has the meaning given
to it in Section 4.22(b). 

“Final Closing Date AR
Value” has the meaning given
to it in Section 2.6(b).

“Final Increase Amount”
has the meaning given to it
in Section 2.6(c).

“Final Reduction Amount”
has the meaning given to it
in Section 2.6(c). 

3

“Financial
Statements” has the meaning
given to it in Section 4.4. 

“GAAP” means, at any
time, United States generally accepted accounting principles, methods and
practices, consistently maintained and applied throughout the periods
referenced. 

“Governmental Authority”
means any federal, state, local or foreign government or political subdivision
thereof, or any agency or instrumentality of such government or political
subdivision, or any self-regulated organization or other non-governmental
regulatory authority or quasi-governmental authority (but only to the extent
that the rules, regulations or orders of such organization or authority have the
force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

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

“Hazardous
Substance”
means any (a) substance, gas,
material or chemical which poses or may pose a hazard to human health or safety,
(b) toxic substance or hazardous waste, substance or related material, or any
pollutant or contaminant, or (c) asbestos, urea formaldehyde foam insulation,
petroleum and petroleum by-products and which, in each case described above in
(a), (b) and (c), is now subject to any Environmental Law.

“Holdback
Period” means the period
beginning on the Closing Date and ending on the first anniversary of the Closing
Date.

“Indemnified
Party” has the meaning given
to it in Section 6.5(a).

“Indemnifying
Party” has the meaning given
to it in Section 6.5(a).

“Intellectual
Property” has the meaning
given to it in Section 4.13(a).

“Interim Balance Sheet
Date” has the meaning given
to it in Section 4.4.

“Inventory” has the
meaning given to it in Section 2.1(c). 

“Knowledge” means,
with respect to a Party, the actual or constructive knowledge of such Party,
after due inquiry. When used with respect to Seller, Knowledge shall include
only the Knowledge of Kenneth E. Horvath and Brian E. Hubler. 

“Landlord” means
Hubler and Horvath Realty, a Pennsylvania general partnership, the owner of the
Paxinos Property. 

“Law” means any statute, law,
ordinance, regulation, rule, code, order, constitution, treaty, common law,
judgment, decree, or other requirement of any Governmental Authority.

“Leased Real Property”
has the meaning given to it
in Section 4.22.

“Liability” means any
liability, obligation, claim against or Contract of Seller of any kind or
nature, at any time existing or asserted, whether or not accrued, whether fixed,
contingent or otherwise, whether known or unknown, and whether or not recorded
on the books and records of Seller, arising
out of or by reason of this or any other transaction or event occurring prior or
subsequent to the Closing. 

4

“Losses” means
losses, damages, liabilities, deficiencies, Actions, judgments, interest,
awards, penalties, fines, costs or expenses of whatever kind, including
reasonable attorneys’ fees and the cost of enforcing any right to
indemnification hereunder.

“Net Adjustment Payment”
has the meaning given to it
in Section 2.6(c).

“Notice of Claim”
has the meaning given to it
in Section 6.5(a).

“Party” or
“Parties” have the meanings given to such terms in the
preamble. 

“Paxinos
Lease” means the Lease
Agreement, in substantially the form attached hereto as Exhibit A, to be entered into by Buyer and Landlord with
respect to the Leased Real Property as of the Closing Date. 

“Paxinos Property”
means the real property located at 1228 State Road 487, Paxinos, Pennsylvania,
which is leased by Seller from Landlord, as more particularly described in
Schedule 4.22. 

“Permits”
means all material permits, licenses, franchises, approvals, authorizations,
registrations, certificates, variances and similar rights obtained, or required
to be obtained, from Governmental Authorities. 

“Person” means and
includes any individual, partnership, corporation, trust, unincorporated
organization or other entity or Government Authority. 

“Personal
Information” means the type
information regulated or subject to Privacy Laws and collected, used, disclosed
or retained by Seller including information regarding Seller’s clients,
customers, suppliers, employees, agents, dependent and independent contractors
including an individual’s name, address, age, gender, identification or social
insurance number, income, citizenship, employment, assets, liabilities, payment
records, credit information, personal and professional references and health
and/or medical records. 

“Privacy
Laws” means all applicable
Laws governing the collection, use, disclosure or retention of Personal
Information. 

“Purchased
Assets” means the assets
being purchased and sold hereunder, as defined in Section 2.1. 

“Purchased
IP” has the meaning given to
it in Section 4.13(b). 

“Purchase
Price” has the meaning given
to it in Section 2.4. 

“Representative”
means, with respect to any
Person, any and all directors, officers, employees, consultants, financial
advisors, counsel, accountants and other agents of such Person. 

5

“Restrictive Covenant
Agreement” has the meaning
given to it in Section 8.4.

“Restrictive Covenant
Payments” has the meaning
given to it in Section 2.5(b).

“Security Holdback
Amount” has the meaning given
to it in Section 2.7.

“Seller” has the
meaning given to it in the preamble.

“Seller Indemnified
Parties” has the meaning
given to it in Section 6.3. 

“Shareholder” or
“Shareholders” have
the meanings given to such terms in the preamble. 

“Target AR
Ceiling” means $590,000.

“Target AR
Floor” means $540,000.

“Taxes”
means all federal, state, local, foreign and other income, gross receipts,
sales, use, production, ad valorem, transfer, documentary, franchise,
registration, profits, license, lease, service, service use, withholding,
payroll, employment, unemployment, estimated, excise, severance, environmental,
stamp, occupation, premium, property (real or personal), real property gains,
windfall profits, customs, duties or other taxes, fees, assessments or charges
of any kind whatsoever, together with any interest, additions or penalties with
respect thereto and any interest in respect of such additions or penalties.

“Tax Return”
means any return, declaration, report, claim for refund, information return or
statement or other document relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof. 

“Third Party Action”
has the meaning given to it
in Section 6.5(d). 

“Transaction Documents”
means this Agreement, the Restrictive Covenant Agreements, the Assignment and
Assumption Agreement, Paxinos Lease, the bill of sale and the other agreements,
instruments and documents required to be delivered at the Closing. 

“Uncollected
Receivables” has the meaning
given to it in Section 8.9.

1.2 Accounting Terms. As used
in this Agreement and, unless the context requires otherwise, in each other
agreement, document or instrument delivered under or in connection with this
Agreement, all accounting terms not otherwise defined herein or therein shall
have the meanings assigned to them in accordance with GAAP. 

1.3 Other Definitional Provisions. Unless the context requires otherwise, references to “Articles” and
“Sections” are to the Articles or Sections of this Agreement, and references to
“Exhibits” and “Schedules” are to the Exhibits and Schedules annexed hereto. Any
of the terms defined in this Article I may, unless the context requires
otherwise, be used in the singular or the plural depending on the reference.
Wherever used herein, the masculine pronoun shall include the feminine and the
neuter, as appropriate in the context. With respect to any matter or thing, “including” or “includes” means including
but not limited to such matter or thing. All references to currency contained in
this Agreement shall be to United States currency. 

6

ARTICLE II.
PURCHASE AND SALE 

2.1 Transfer of Purchased Assets. Subject to all of the terms and conditions of this Agreement, at the
Closing Seller shall sell, transfer, convey, assign and deliver to Buyer, free
and clear of all Encumbrances, and Buyer shall purchase and accept from Seller,
all of the assets, of every nature and description whatsoever and wherever
situated, tangible or intangible, owned by Seller on the Closing Date
(collectively, the “Purchased
Assets”), including the
following (but excluding the Excluded Assets):

(a) Seller’s leasehold interest in the Leased Real Property (subject, in the
case of the Paxinos Property, to modification pursuant to the Paxinos Lease);

(b) all of Seller’s tangible personal property, including equipment,
machinery, furniture, fixtures, leasehold improvements, vehicles and supplies,
including without limitation those described in Schedule 2.1(b), together with related product warranties;

(c) all of Seller’s inventory, raw materials, work in progress and finished
goods (collectively, the “Inventory”),
including those described in Schedule 2.1(c);

(d) all of Seller’s accounts receivable and notes receivable and interest
receivable thereon, all as more particularly described in Schedule 2.1(d) (collectively, the “Accounts Receivable”);

(e) all of Seller’s deposits (including security deposits) and prepaid
expenses, all as more particularly described in Schedule 2.1(e);

(f) all of Seller’s interest in and to the Customer Contracts, Customer
Purchase Orders and Quotes, Assumed Leases and certain other Contracts, all as
more particularly described in Schedule 2.1(f)
(collectively, the “Assigned
Contracts”);

(g) all of Seller’s interest in and to (1) all patents, applications for
patents, copyrights, license agreements (including software license agreements),
assumed names, trade names, trademark and/or service mark registrations,
applications for trademark and/or service mark registrations, trademarks and
service marks of Seller, as more particularly described in Schedule 2.1(g), and all variants thereof, including all of
Seller’s rights to use the name “Spectrum Technologies” to the exclusion of
Seller; (2) all of Seller’s rights in and to client information, client lists,
and candidate/prospect lists; (3) all telephone numbers, fax numbers, telephone
directory advertising, web sites, domain names, domain leases, and e-mail
addresses used or held for use in the Business, all as identified on
Schedule 2.1(g); (4) all of Seller’s other proprietary
information, including trade secrets, know-how, product designs and
specifications, operating data and other information pertaining to the Business;
and (5) the goodwill associated with the Business; 

(h) all Permits necessary for or incident to the operation of the Business,
to the extent assignable; 

7

(i) all of Seller’s business and operational records relating to the
Business, including employee records (to the extent permitted under applicable
Law), office and sales records, blueprints, marketing strategies, business
plans, studies and inventory lists and records (but expressly excluding Seller’s
capital stock records, corporate minute books, bank account records and Tax
Returns); and 

(j) all other assets of Seller, not described above, which are either (1)
reflected on the Financial Statements and not disposed of by Seller in the
ordinary course of business between the Interim Balance Sheet Date and the
Closing Date, or (2) acquired by Seller in the ordinary course of business
between the Interim Balance Sheet Date and the Closing Date. 

2.2 Excluded Assets.
Notwithstanding the provisions of Section 2.1, the “Purchased Assets” shall not
include, and Buyer shall not acquire hereunder (collectively, the
“Excluded
Assets”): (i) any of the
capital stock of Seller, (ii) any Employee Benefit Plan, or any interest therein
or right thereunder, (iii) Seller’s capital stock records, corporate minute
books, bank account records and Tax Returns, (iv) Seller’s cash,
cash-equivalents and securities, or (v) the assets identified on Schedule 2.2.

2.3 Use of Seller’s Name and Phone Numbers. In furtherance of the purchase and sale of the
Purchased Assets hereunder, immediately upon the Closing Seller and the
Shareholders shall cause Seller’s corporate name to be changed to a name
completely dissimilar to “Spectrum Technologies, Inc.”, and thereafter shall not
adopt, use, cause to be used, or approve or sanction the use of such name, or
any name so similar as to cause confusion therewith, or any other trade name or
assumed name listed in Schedule
2.1(g). Promptly after the
Closing, Seller shall discontinue use of its existing business telephone numbers
and shall take all reasonable action (at no cost to Seller) and sign all
documents as may be reasonably necessary to make such telephone numbers
available for use by Buyer.

2.4 Purchase Price. Subject to
the provisions of this Agreement (including, without limitation, the adjustments
set forth in Section 2.6 and Section 2.8), the total purchase price shall be
$11,750,000 (the “Purchase
Price”) and the Purchase
Price shall be allocated among the Purchased Assets and to the Restrictive
Covenant Agreement as set forth in Schedule 2.4. The Purchase
Price shall be payable to Seller and the Shareholders in accordance with the
provisions of Section 2.5. At the Closing, Buyer, Seller and each Shareholder
shall execute a closing statement in a form acceptable to the Parties (the
“Closing
Statement”) that sets forth
the calculation of the Closing Cash Payment pursuant to Section 2.5(a), and may
include certain other adjustments or credits to the Purchase Price (and the
Closing Cash Payment) agreed upon by the Parties (the “Closing Statement Adjustment”).

2.5 Payment of Purchase Price.
Subject to the adjustment described in Section 2.6 and all of the terms and
conditions of this Agreement, at the Closing: 

(a) Buyer shall pay to Seller an amount (the “Closing Cash Payment”) equal to (i) the Purchase Price, (ii)
less the Security Holdback Amount, (iii)
less the EBITDA Holdback Amount (iv) less the Restrictive Covenant Payment, (v) less the Estimated Reduction Amount, if any, (vi) plus the Estimated Increase Amount, if any, and (vii) plus or less, as the case may be, the Closing Statement Adjustment, by wire transfer of
immediately available funds to an account designated in writing by Seller;

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(b) Buyer shall pay to each Shareholder the sum of $100,000, by wire transfer
of immediately available to an account designated in writing by such
Shareholder, in consideration for such Shareholder’s execution and delivery of
the Restrictive Covenant Agreement (collectively, the “Restrictive Covenant
Payments”); and 

(c) Buyer shall hold the Security Holdback Amount in accordance with Section
2.7. 

(d) Buyer shall hold the EBITDA Holdback Amount in accordance with Section
2.8(c). 

2.6 Closing Date Adjustment to Purchase Price. The Purchase Price shall be subject to
adjustment in accordance with the following procedures: 

(a) No
later than one day prior to the Closing Date, Seller shall deliver to Buyer a
good faith estimate of the Closing Date AR Value, which shall be determined in
accordance with GAAP and shall be calculated net of the bad debt reserve agreed
upon by Buyer and Seller prior to Closing (the “Estimated Closing Date AR
Value”). If the Estimated
Closing Date AR Value is less than the Target AR Floor, then the Purchase Price
and, as provided in Section 2.5(a), the Closing Cash Payment shall be reduced,
on a dollar-for-dollar basis, by the amount by which the Estimated Closing Date
AR Value is less than the Target AR Floor (the “Estimated Reduction Amount”). If the Estimated Closing Date AR Value is
greater than the Target AR Ceiling, then the Purchase Price and, as provided in
Section 2.5(a), the Closing Cash Payment, shall be increased, on a
dollar-for-dollar basis, by the amount by which the Estimated Closing Date AR
Value is greater than the Target AR Ceiling (the “Estimated Increase Amount”). If the Estimated Closing Date AR Value is equal
to or greater than the Target AR Floor but less than or equal to the Target AR
Ceiling, then neither the Purchase Price nor the Closing Cash Payment shall be
adjusted pursuant to this Section 2.6(a). 

(b) Within 200 days after the Closing Date, Buyer shall prepare and deliver
to Seller the calculation of the Closing Date AR Value. The calculation of
Closing Date AR Value shall be prepared in accordance with GAAP and shall not
include the amount of any Uncollected Receivables (as provided in Section 8.9),
but shall not otherwise be reduced by any bad debt reserve used in calculating
the Estimated Closing Date AR Value. Buyer’s calculation of the Closing Date AR
Value shall be final and binding on the Parties for purposes of this Section 2.6
unless, within 10 days after delivery thereof to Seller, Seller delivers to
Buyer a written notice of dispute specifying in reasonable detail the items in
dispute. After delivery of such a dispute notice, Seller and Buyer shall
promptly negotiate in good faith with respect to the subject of the dispute
notice. The Closing Date AR Value finally determined under this Section 2.6(b)
shall be referred to as the “Final Closing Date AR Value”. 

9

(c) Subject to the provisions of this Section 2.6(c), (i) if the Final
Closing Date AR Value is less than the Target AR Floor, then the Purchase Price
shall be reduced, on a dollar-for-dollar basis, by the amount by which the Final
Closing Date AR Value is less than the Target AR Floor (the “Final Reduction Amount”); (ii) if the Final Closing Date AR Value is
greater than the Target AR Ceiling, then
the Purchase Price shall be increased, on a dollar-for-dollar basis, by the
amount by which the Final Closing Date AR Value is greater than the Target AR
Ceiling (the “Final Increase
Amount”); and (iii) if the
Final Closing Date AR Value is equal to or greater than the Target AR Floor but
less than or equal to the Target AR Ceiling, then the Purchase Price shall not
be adjusted pursuant to this Section 2.6(c). Notwithstanding the foregoing, for
purposes of determining the amount, if any, due from Buyer or Seller as a result
of the adjustments set forth in this Section 2.6(c) (the “Net Adjustment Payment”), any Estimated Reduction Amount or Estimated
Increase Amount paid under Section 2.6(a) shall be applied to or offset or
netted against, as applicable, the Final Reduction Amount or Final Increase
Amount, as appropriate, so that the Net Adjustment Payment shall result in the
net aggregate amount of payments or adjustments made pursuant to Section 2.6(a)
and Section 2.6(c) reflecting the adjustment, if any, that would be due pursuant
to this Section 2.6(c) based on the Final Closing Date AR Value and Buyer or
Seller, as applicable, shall pay to the other the Net Adjustment Payment so
calculated, as provided in Section 2.6(d). For purposes of clarification, if
the Final Closing Date AR Value is greater than the Target AR Floor but less
than the Target AR Ceiling (resulting in there being no adjustment to the
Purchase Price pursuant to this Section 2.6(c)), but there was an adjustment to
the Purchase Price made at Closing pursuant to Section 2.6(a), then the Net
Adjustment Payment shall be equal to the Estimated Reduction Amount (which shall
be returned and paid by Buyer to Seller) or Estimated Increase Amount (which
shall be returned and paid by Seller to Buyer), as the case may be, calculated
under Section 2.6(a). 

(d) If
the Purchase Price is reduced (or the Net Adjustment Payment is otherwise due
from Seller) pursuant to Section 2.6(c), then, within 10 days after
determination of the Final Closing Date AR Value, Seller and the Shareholders,
jointly and severally, shall pay to Buyer in cash the full amount of the Net
Adjustment Payment (or authorize Buyer in writing to offset such amount against
the Security Holdback Amount in accordance with Section 6.6). If Seller and the
Shareholders fail to pay when due the amount of the Net Reduction Payment, if
any, due from them then, in addition to any other rights and remedies available
to Buyer (and notwithstanding any failure by Seller and the Shareholders to
authorize such offset as provided above), Buyer shall have the right to offset
such amounts against the Security Holdback Amount, subject to and in accordance
with the terms of Section 6.6. If the Purchase Price is increased (or the Net
Adjustment Payment is otherwise due from Buyer) pursuant to Section 2.6(c), then
Buyer shall pay to Seller, in cash, within 10 days after determination of the
Final Closing Date AR Value, the full amount of the Net Adjustment Payment. Any
reduction or increase in the Purchase Price made pursuant to this Section 2.6
shall be treated by the Parties as an adjustment to the Purchase Price for
income tax purposes. For purposes of clarification, a Final Reduction Amount
shall be treated as a reduction of the Purchase Price and a reduction of the
portion of the Purchase Price allocated to Accounts Receivable. 

2.7 Security Holdback. As
security for the obligations of Seller and the Shareholders pursuant to Section
6.2 and Section 8.9, at the Closing, Buyer shall withhold from the Purchase
Price the sum of $1,175,000 (the “Security Holdback Amount”). Buyer shall hold the Security Holdback Amount during the Holdback
Period, pursuant to the terms of this Agreement. Subject to and in accordance
with the provisions of Section 6.6, Buyer shall have the right to deduct from
and set off against the Security Holdback Amount (A) any Losses for which Buyer
is entitled to indemnification from Seller and the Shareholders pursuant to
Section 6.2, and (B) any amounts due to Buyer from Seller or the Shareholders
with respect to the Net Adjustment Amount pursuant to Section 2.6(d) (and not otherwise paid by Seller or the
Shareholders pursuant to Section 2.6(d)). Upon expiration of the Holdback
Period, Buyer shall pay to Seller, in immediately available funds, an amount
equal to (i) the Security Holdback Amount, less (ii) any amounts set off against the Security Holdback Amount pursuant
to this Section 2.6 or Section 6.6, less (iii) any amounts
that Buyer is permitted to continue to hold pursuant to Section 6.6,
plus (iv) interest, at the rate of 0.5% per annum, on
the portion of the Security Holdback Amount payable to Seller (not including
amounts that Buyer is permitted to set off or continue to hold, as described in
clauses (ii) and (iii)) from the Closing Date to the date of payment.

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2.8 Post-Closing Purchase Price Adjustment. The Purchase Price shall be subject to
adjustment after the Closing as provided in this Section 2.8. 

(a) If
the Adjustment Year EBITDA (as determined in accordance with Section 2.8(b)) is
less than $1,808,000,
then the Purchase Price shall be
reduced by an amount (the “Adjustment Amount”)
equal to the product of (i) an amount equal to (A) $1,808,000 minus (B) the
Adjustment Year EBITDA, multiplied by (ii) 6.5; provided, however, that in no
event shall the Purchase Price be reduced by an amount greater than the EBITDA
Holdback Amount. If the Adjustment Year EBITDA (as determined in accordance with
Section 2.8(b)) equals or exceeds $1,808,000, then the Purchase Price shall not be adjusted pursuant to this Section.
If the Purchase Price is reduced pursuant to this Section, then Buyer may retain
from the EBITDA Holdback Amount an amount equal to the Adjustment Amount. Any
reduction of the Purchase Price made pursuant to this Section 2.8 shall be
treated by the Parties as an adjustment to the Purchase Price for income tax
purposes. 

(b) On
or before January 31, 2017, Buyer shall prepare and deliver to Seller a written
statement setting forth in reasonable detail Buyer’s determination of Adjustment
Year EBITDA and its calculation of the resulting Adjustment Amount, if any.
Buyer’s calculation of the Adjustment Year EBITDA and the resulting Adjustment
Amount shall be final and binding on the Parties for purposes of this Section
2.8 unless, within 10 days after delivery thereof to Seller, Seller delivers to
Buyer a written notice of dispute specifying in reasonable detail the items in
dispute. After delivery of such a dispute notice, Seller and Buyer shall
promptly negotiate in good faith with respect to the subject of the dispute
notice and the calculation of the Adjustment Amount. Within 30 days after the
end of each of the first three fiscal quarters during the Adjustment Year, Buyer shall provide Seller with a
written calculation of its estimate of the Adjustment Year EBITDA through the
end of such quarter, which estimate shall be for informational purposes only and
shall not be binding on the Parties for purposes of the calculation of the
Adjustment Year EBITDA pursuant to this Section 2.8(b). 

(c) As
security for the payment of the Adjustment Amount, if any, at the Closing, Buyer
shall withhold from the Purchase Price the sum of $500,000 (the
“EBITDA Holdback
Amount”). Within 10 days
after the final determination of the Adjustment Amount pursuant to Section
2.8(b), Buyer shall pay to Seller an amount equal to (i) the EBITDA Holdback
Amount, less (ii) the Adjustment Amount, if any,
plus (iii) interest, at the rate of 0.5% per annum, on
the portion of the EBITDA Holdback Amount payable to Seller (not including the
Adjustment Amount) from the Closing Date to the date of payment. Buyer shall
retain the Adjustment Amount, as a reduction to the Purchase Price, in
accordance with Section 2.8(a). 

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(d) After the Closing, Buyer shall have sole discretion with regard to all
matters relating to the operation of its business and the Purchased Assets.
Notwithstanding the foregoing, during the Adjustment Period, Buyer shall: (i)
operate the Business in a manner consistent in all material respects with
Seller’s operation of the Business prior to the Closing; (ii) not, directly or
indirectly, take any actions in bad faith that would have the purpose of
reducing the Adjustment Year EBITDA; and (iii) not include in the calculation of
Adjustment Year EBITDA expenses of the type that were not incurred in the
Business for the most recent fiscal year as reflected in the Financial
Statements and the supporting general ledger and trial balance. For
clarification, for example, the calculation shall not include expenses allocated
or charged to the Business for (1) publicly traded company compliance costs, (2)
corporate overhead expenses or other intercompany charges, or (3)
administration, legal and accounting costs materially in excess of those
historically incurred in the operation of the Business.

ARTICLE III.
LIABILITIES AND CONTRACTS 

3.1 No Assumption of Liabilities or Contracts. It is expressly understood and agreed that Buyer
does not assume nor shall it be liable for any Liability unless such Liability
is expressly assumed by Buyer under Section 3.2. Seller shall pay or make
adequate provision for the payment of all of the Liabilities of every kind and
nature not so assumed by Buyer, and Seller and the Shareholders shall jointly
and severally indemnify Buyer, as provided by Section 6.2, with respect to all
such Liabilities not assumed by Buyer under Section 3.2. 

3.2 Contracts Assumed. Subject
to all of the terms and conditions of this Agreement, at the Closing Buyer shall
assume and become responsible to perform and discharge when due, to the extent
the same have not been performed or discharged by Seller prior to the Closing,
the Liabilities arising after the Closing Date under the Assigned Contracts, but
only to the extent that such Liabilities do not relate to any breach, default or
violation by Seller of the Assigned Contracts on or prior to the Closing Date
(collectively, the “Assumed
Liabilities”). Upon
assumption by Buyer of the Assigned Contracts at Closing, Buyer shall be
entitled to all of Seller’s rights and benefits thereunder and shall relieve
Seller of its obligations to perform the same; provided, however, that nothing
herein contained shall relieve Seller of its obligations or
Liabilities arising thereunder or in connection therewith prior to such
assumption by Buyer at the Closing. Buyer shall indemnify Seller, as provided by
Section 6.3, with respect to all of the Assumed Liabilities from and after the
Closing Date. 

ARTICLE IV.
SELLER’S AND SHAREHOLDERS’ REPRESENTATIONS
AND WARRANTIES 

Seller and each Shareholder
hereby jointly and severally represent and warrant to Buyer, as of the Closing
Date, as follows: 

4.1 Organization, Standing and Power. Seller is a corporation duly organized, validly existing and in good
standing under the Laws of the State of Pennsylvania. Seller has all necessary
corporate power and authority to own, use and transfer its properties and assets
and to transact the Business as now being conducted. Schedule 4.1 sets forth each jurisdiction in which Seller is
licensed or qualified to do business and, except as set forth in Schedule 4.1, Seller is duly licensed or qualified to do
business and is in good standing in each jurisdiction in which the ownership of the Purchased Assets or the operation
of the Business as currently conducted makes such licensing or qualification
necessary. Seller has no subsidiaries. Schedule 4.1 includes a
list of all of the holders of the outstanding capital stock of Seller, and the
number of shares held by each such holder. 

12

4.2 Authority for Transaction.
Seller’s execution and delivery of this Agreement and all other Transaction
Documents to which it is a party, its compliance with the provisions hereof and
thereof and the consummation of all of the transactions contemplated hereby and
thereby, have all been duly and validly authorized by all necessary corporate
action on the part of Seller, and this Agreement and all other Transaction
Documents to which Seller is a party are valid and binding upon Seller in
accordance with their respective terms. Each Shareholder has full power and
authority to execute and deliver this Agreement and all other Transaction
Documents to which such Shareholder is a party, to comply with the provisions
hereof and thereof and to consummate the transactions contemplated hereby and
thereby. This Agreement and all other Transaction Documents to which each
Shareholder is a party are valid and binding upon such Shareholder in accordance
with their respective terms. 

4.3 No Conflict. Neither the
execution and delivery of this Agreement or any other Transaction Document by
Seller or either Shareholder, nor compliance by Seller or either Shareholder
with any of the provisions hereof or thereof, nor the consummation of the
transactions contemplated hereby or thereby, will: 

(a) conflict with or result in a breach of any provision of Seller’s
certificate of incorporation or by-laws; 

(b) except as set forth in Schedule 4.3, result in a
default, or give rise to any right of termination, cancellation or acceleration,
under any term, condition or provision of any Contract, Encumbrance or other
instrument or obligation to which Seller or either Shareholder is a party or by
which they or any of their respective properties or assets may be
bound;

(c) violate any Governmental Order or Law applicable to Seller or any of its
properties or assets; or 

(d) require any consent, waiver or approval by, notice to or filing with any
Person, except for such consents, waivers, approvals, notices or filings set
forth in Schedule
4.3, all of which have been
obtained, given or made. 

4.4 Financial Statements.
Seller has heretofore delivered to Buyer a true, correct and complete copy of
the following (collectively, the “Financial Statements”): ( i) the unaudited compiled balance sheets and related statements of
income for Seller for the fiscal years ended December 31, 2012, December 31,
2013 and December 31, 2014, respectively; and (ii) the unaudited balance sheet
of Seller as of October 31, 2015 (the “Interim Balance Sheet Date”), and related unaudited statement of income for the 10-month period then
ended. The Financial Statements are compilation statements compiled from the
books of account and records of Seller and have been compiled in accordance with
GAAP, except that the Financial Statements do not contain notes, do not contain
reserves for bad debts and accruals of certain non-material items, and may be
subject to normal audit and GAAP adjustments of the type that are not required
for compilations, none of which adjustments are expected to be material. The
Financial Statements fairly present Seller’s financial position as at the dates
thereof and the results of Seller’s operations, changes in Seller’s financial
position and other information of Seller included therein for the periods or as
at the dates therein set forth. 

13

4.5 No Undisclosed Liabilities. Seller has no Liabilities with respect to the Business, except (a)
those which are adequately reflected or reserved against in the Financial
Statements as of the Interim Balance Sheet Date, and (b) those which have been
incurred in the ordinary course of business consistent with past practice since
the Interim Balance Sheet Date and which are not, individually in excess of
$20,000 or in the aggregate in excess of $50,000.

4.6 Absence of Certain Changes. Except as disclosed in Schedule 4.6, since the
Interim Balance Sheet Date, (a) Seller has conducted the Business only in the
ordinary course of business consistent with past practice, (b) there has not
been any aggregate net material adverse change in the condition (financial or
otherwise), assets, Liabilities or Business of Seller, or any damage,
destruction or loss, whether or not covered by insurance, materially adversely
affecting its properties or the Business, and (c) Seller has not experienced any
other change in the Business resulting in or which could have an Adverse
Effect.

4.7 Title. Seller has, and
shall transfer to Buyer at the Closing, good title to each item comprising the
Purchased Assets, free and clear of all Encumbrances. 

4.8 Compliance with Laws; Permits.

(a) Seller has complied, and is now complying, in all material respects with
all Laws applicable to ownership and use of the Purchased Assets or the
operation of the Business and, to the Knowledge of Seller and the Shareholders,
there is no basis for any Action arising out of or in connection therewith.
Seller has not received any notice of any violation of any Law, and Seller is
not party to any settlement agreement or consent decree with continuing
obligations or restrictions on Seller. To the Knowledge of Seller and the
Shareholders, each item comprising the Purchased Assets and the current uses
thereof conform in all material respects to all applicable Laws.

(b) All Permits required for Seller to conduct the Business as currently
conducted or for the ownership and use of the Purchased Assets have been
obtained by Seller and are valid and in full force and effect. All fees and
charges with respect to such Permits as of the date hereof have been paid in
full. Schedule
4.8(b) lists all current Permits
issued to Seller which are related to the conduct of the Business as currently
conducted or the ownership and use of the Purchased Assets, including the names
of the Permits and their respective dates of issuance and expiration. No event
has occurred that, with or without notice or lapse of time or both, would
reasonably be expected to result in the revocation, suspension, lapse or
limitation of any Permit set forth in Schedule 4.8(b).

4.9 Condition and Sufficiency of Purchased Assets. Each item of tangible property included in the
Purchased Assets is in good condition and repair, ordinary wear and tear
excepted, and none of such tangible personal property is in need of maintenance
or repairs except for ordinary, routine maintenance and repairs that are not in
the aggregate material in nature or cost. The Purchased Assets (i) constitute
all of the rights, property and assets used to conduct the Business as currently
conducted, except for the Excluded Assets, and (ii) include all of the operating
assets of Seller. None of the assets used or useful in the operation of the
Business are owned by the Shareholders. 

14

4.10 Privacy Laws and Data Protection. Seller has complied in all respects with all applicable Privacy Laws.
There are no restrictions on the collection, use, disclosure and retention of
Personal Information by Seller except as provided by Privacy Laws. With respect
to the Business, Seller has established, implemented, updated, maintained and
enforced such policies, programs, procedures, contracts and systems with respect
to the collection, use, storage, transfer, retention, deletion, destruction,
disclosure and other forms of processing of any and all Personal Information as
are consistent and compliant with practice and standards typical for companies
of comparable size to Seller that conduct businesses similar to the Business.
Seller and the Shareholders do not have any Knowledge of any actual, suspected
or threatened (i) breach, misappropriation, or unauthorized disclosure, access,
use, dissemination or modification of any Personal Information ; or (ii) breach
or violation of any of Seller’s policies, programs, procedures, contracts and
systems described in this Section 4.10. 

4.11 Accounts Receivable. The
Accounts Receivable (a) have arisen from bona fide transactions entered into by
Seller involving the sale of goods or the rendering of services in the ordinary
course of business consistent with past practice; (b) constitute only valid
claims of Seller that, to the Knowledge of Seller, are not subject to any claims
of set-off or other defenses or counterclaims or disputes, other than normal
cash discounts or volume discounts or other discounts specified in the Customer
Contract or Customer Purchase Order and Quote and accrued in the ordinary course
of business consistent with past practice; and (c) are required by the terms of
the invoice to be paid in full within 90 days after the date of
invoice.

4.12 Inventory. All of the
Inventory (i) consists of inventories of the kind, quality and quantity
regularly and currently used in the Business, and (ii) is in good and saleable
condition and fit for Seller’s purposes.

4.13 Intellectual Property.

(a) “Intellectual Property” means any and all of the
following in any jurisdiction throughout the world: (A) trademarks and service
marks, including all applications and registrations and the goodwill connected
with the use of and symbolized by the foregoing; (B) copyrights, including all
applications and registrations related to the foregoing; (C) trade secrets and
confidential know-how; (D) patents and patent applications; (E) websites and
internet domain name registrations; and (F) other intellectual property and
related proprietary rights, interests and protections (including all rights to
sue and recover and retain damages, costs and attorneys' fees for past, present
and future infringement and any other rights relating to any of the
foregoing).

(b) Schedule 2.1(g) lists all
Intellectual Property included in the Purchased Assets (“Purchased IP”). Seller is the sole and
exclusive legal and beneficial owner of all of the Purchased IP, free and clear
of all Encumbrances, and has the valid right to use all other Intellectual
Property used in or necessary for the conduct of the Business as currently
conducted.

15

(c) Seller’s prior and current use of the Purchased IP, and Seller’s conduct
of the Business as currently conducted, has not and does not infringe, violate,
dilute or misappropriate the Intellectual Property of any Person. To the
Knowledge of Seller and the Shareholders, no Person is infringing,
misappropriating, diluting or otherwise violating any of the Purchased IP.

(d) There are no Actions (including any oppositions, interferences or
reexaminations) settled, pending or, to the Knowledge of Seller and the
Shareholders, threatened (including in the form of offers to obtain a license):
(i) alleging any infringement, misappropriation, dilution or violation of the
Intellectual Property of any Person by Seller in connection with the Business; ;
(ii) challenging the validity, enforceability, registrability or ownership of
any of the Purchased IP or Seller’s rights with respect to any Purchased IP; or
(iii) by Seller or any other Person alleging any infringement, misappropriation,
dilution or violation by any Person of any Purchased IP. Seller is not subject
to any outstanding or prospective Governmental Order (including any motion or
petition therefor) that does or would restrict or impair the use of any
Purchased IP or restrict the licensing thereof to any Person. 

(e) None of the past or present employees, officers, directors or
shareholders of Seller has any rights in any of the Purchased IP or in any
inventions, whether or not patented, which have been or are used by Seller in
the Business or which pertain to the Business. 

4.14 Assigned Contracts. Each
of the Assigned Contracts is valid and binding, in full force and effect and,
except for obtaining any consents, waivers or approvals or giving any notice
listed in Schedule
4.3, is fully assignable to and
assumable by Buyer, so that immediately after the Closing, Buyer will be
entitled to the full benefits thereof. None of Seller or, to the Knowledge of
Seller and the Shareholders, any other party thereto is in breach of or default
under (or is alleged to be in breach of or default under), or has provided or
received any notice of any intention to terminate, any Assigned Contract, except
as disclosed in Schedule
4.14. To the Knowledge of Seller
and the Shareholders, no event or circumstance has occurred that, with or
without notice or lapse of time or both, would constitute an event of default
under any Assigned Contract or result in a termination thereof or would cause or
permit the acceleration or other changes of any right or obligation or the loss
of benefit thereunder. Seller has made available to Buyer complete and correct
copies of each Assigned Contract. There are no disputes pending or, to the
Knowledge of Seller and the Shareholders, threatened under any Assigned
Contract. 

4.15 Other Contracts. Other
than the Assigned Contracts, Seller is not a party to, or otherwise bound by,
any Contract or other instrument which is material or necessary to the ownership
of the Purchased Assets or the operation of the Business or which has an Adverse
Effect on any of the Purchased Assets or the Business.

4.16 Legal Proceedings. Except
as set forth in Schedule
4.16, there are no Actions
pending or, to the Knowledge of Seller and the Shareholders, threatened against
or by Seller (a) relating to or affecting the Business, the Purchased Assets or
the Assumed Liabilities; or (b) that challenge or seek to prevent, enjoin or
otherwise delay the transactions contemplated by this Agreement. To the
Knowledge of Seller and the Shareholders, no event has occurred or circumstances
exist that may give rise to, or serve as a basis for, any such Action. There are
no outstanding Governmental Orders and no unsatisfied judgments, penalties or
awards against, relating to or affecting the Business. 

16

4.17 Tax Matters. Seller has
filed all federal, state, county and local Tax Returns which are required to be
filed prior to the date of this Agreement and has paid or has reserved for the
payment of all Taxes which have become due and payable. All such Tax Returns are
complete and accurate and disclose all Taxes required to be paid. No event has
occurred which could impose on Buyer any successor or transferee liability for
any Taxes in respect of Seller, except as may occur by operation of law under
any Laws which provide for such liability upon the transfer of all or
substantially all of the assets of Seller. No examination or audit of any Tax Return is currently in progress and no
Governmental Authority is asserting, or has threatened in writing to assert,
against Seller any deficiency, proposed deficiency or claim for additional Taxes
or any adjustment thereof with respect to any period for which a Tax Return has
been filed, for which Tax Returns have not yet been filed or for which Taxes are
not yet due and payable. All amounts required to be withheld by Seller
(including from employees for income Taxes and social security and other payroll
Taxes) have been collected or withheld, and either paid to the respective Taxing
authorities, set aside in accounts for such purpose, or accrued, reserved
against and entered upon the books of Seller.

4.18 Insurance. Schedule 4.18 contains (a) a list and general description of
all fire, theft, casualty, liability, life, hospitalization, medical
reimbursement and other insurance coverage insuring the Purchased Assets, Seller
and its personnel and Business operations; and (b) with respect to workmen’s
compensation, liability insurance and property insurance claims, a copy of the
claims history obtained from Seller’s insurance providers for the period
described on Schedule
4.18. There are no claims related
to the Business, the Purchased Assets or the Assumed Liabilities pending under any such insurance policies as to which
coverage has been questioned, denied or disputed or in respect of which there is
an outstanding reservation of rights. Seller has provided to Buyer true, correct
and complete copies of the insurance policies identified on Schedule 4.18.

4.19 Labor Relations and Employment Issues.

(a) Seller has made available to Buyer a true, correct and complete list
setting forth the names, date of hire, the rate of compensation (and the
portions thereof attributable to salary and bonuses, respectively), the amount
of accrued but unused vacation time as of the date of this Agreement, and work
location of all current employees of Seller. Seller has made available to Buyer
a true, correct and complete list setting forth the names of all employees of
Seller currently on short-term or long-term disability leave, workers’
compensation leave, leave under the Family Medical Leave Act, and any other
leave.

(b) Except as set forth in Schedule 4.19, (1) Seller
has not entered into any collective bargaining agreement or other contract with
any employee, union, labor organization or other employee representative or
group of employees and, to the Knowledge of Seller and the Shareholders, no such
organization or Person has made or is making any attempt to organize or
represent employees of Seller; (2) there is no pending grievance or arbitration
and no unsatisfied or unremedied grievance or arbitration award against Seller
or any agent, representative or employee of Seller and, to the Knowledge of
Seller and the Shareholders, there is no basis for any such grievance or
arbitration; (3) there is no unfair labor practice charge, pending trial of
unfair labor practice charges, unremedied unfair labor practice finding or
adverse decision of the National Labor Relations Board or administrative law
judge thereof, against Seller or any agent, representative or employee of Seller
and, to the Knowledge of Seller and the Shareholders, there is no basis for any
such unfair labor practice charge; and (4) there is not pending or, to the
Knowledge of Seller and the Shareholders, threatened with respect to Seller or
its employees any labor dispute, strike or work stoppage. 

17

(c) Without limiting the generality of Section 4.8, Seller is in compliance
in all material respects with all applicable Laws, standards and Contracts
relating to employment, and the payment and withholding of Taxes and other
similar obligations, and Seller has not received any notice of any violation of
any such Law, standard or Contract.

(d) Except as set forth in Schedule 4.19, no current
or former employee of Seller is owed by Seller overtime pay (other than overtime
pay for the current payroll period), wages or salary for any period other than
the current payroll period, vacation, holiday or other time off or pay in lieu
thereof (other than time off or pay in lieu thereof earned in respect of the
current year), or any amount arising from any violation of any Law, or Contract
relating to the payment of wages, fringe benefits, wage supplements or hours of
work. 

4.20 Employee Benefits.

(a) Schedule 4.20 lists all
employee benefit plans and collective bargaining, employment or severance
agreements or other similar arrangements which Seller or any ERISA Affiliate,
has sponsored, or maintained after July 1, 1999, or to which contributions are
made or have been made after July 1, 1999, or for which obligations have been
incurred, for the benefit of employees or former employees of Seller or any
ERISA Affiliate, or with respect to which Seller or any ERISA Affiliate could
have any Liability including, without limitation, (1) any “employee benefit
plan” (within the meaning of Section 3(3) of ERISA), (2) any profit-sharing,
stock bonus, deferred compensation, bonus, stock option, stock purchase,
restricted stock, equity incentive, phantom equity, pension, retirement,
retainer, compensation, consulting, severance, retention, indemnification,
welfare or incentive plan, agreement or arrangement, (3) any plan, agreement or
arrangement providing for “fringe benefits” or perquisites to employees,
officers, directors or agents, including but not limited to benefits relating to
automobiles, clubs, vacation, child care, parenting, sabbatical, sick leave,
tuition reimbursement, medical, dental, hospitalization, life insurance,
disability insurance and other types of insurance, whether written or unwritten,
and (4) any employment agreement. The plans, agreements and arrangements
described in this Section 4.20 are referred to herein as “Employee Benefit Plans.” 

(b) None of the Employee Benefit Plans is, and neither Seller nor any ERISA
Affiliate has ever contributed to or had any obligation to contribute to: (i) a
plan subject to Title IV of ERISA or Section 412 of the Code; (ii) a
“multiemployer plan” (within the meaning of Section 3(37) of ERISA); (iii) a
“multiple employer plan” (within the meaning of Section 413(c) of the Code);
(iv) any “voluntary employees’ beneficiary association” (within the meaning of
Section 501(c)(9) of the Code); or (v) any “multiple employer welfare
arrangement” (within the meaning of Section 3(40) of ERISA). 

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(c) Seller has delivered to Buyer copies of all documents and summary plan
descriptions of the Employee Benefit Plans or summary descriptions of any such
Employee Benefit Plan not otherwise in writing, which documents and descriptions
are true, correct and complete in all respects. Seller has delivered to
Buyer true, correct and complete copies of the most recent determination
letters, advisory letters and opinion letters and the Forms 5500 filed in the
most recent three plan years with respect to any Employee Benefit Plan,
including all schedules thereto and financial statements with attached opinions
of independent accountants. Seller has delivered to Buyer summaries of material
modifications distributed since the most recent summary plan description and
material communications distributed within the last year to the participants of
each Employee Benefit Plan. 

(d) Each Employee Benefit Plan (and any related trust agreement, insurance
contract or fund) has been maintained, funded and administered in accordance
with its terms and any applicable collective bargaining agreement, and each
Employee Benefit Plan, Seller and each ERISA Affiliate, is in compliance with
the applicable provisions of ERISA, the Code and all Laws applicable thereto.
Seller has not incurred and could not reasonably be expected to incur an
employer shared responsibility penalty under Section 4980H of the Code. None of
Seller, any ERISA Affiliate, nor any Employee Benefit Plan fiduciary has, with
respect to the Employee Benefit Plans, engaged in a breach of fiduciary duty or
a non-exempt “prohibited transaction,” as such term is defined in Section 4975
of the Code or Section 406 of ERISA. 

(e) No
Actions (other than routine claims for benefits in the ordinary course) are
pending or, to the Knowledge of Seller and the Shareholders, threatened with
respect to any Employee Benefit Plan. No audits, inquiries, reviews,
proceedings, claims, or demands are pending with any Governmental Authority with
respect to any Employee Benefit Plan. There are no facts which could give rise
to any Liability in the event of any such Action, audit, review, or other
proceeding. 

(f) Each Employee Benefit Plan that is intended to be qualified under Section
401(a) of the Code has received a favorable determination letter (or an opinion
or advisory letter on which it is entitled to rely) from the Internal Revenue
Service that such Employee Benefit Plan is qualified under Section 401(a) of the
Code, and such determination letter, opinion letter or advisory letter has not
expired as of the date hereof (or, in the case of an expired determination
letter, the Employee Benefit Plan’s sponsor has a timely filed application for
an updated determination letter pending with the Internal Revenue Service and
has no reason to believe that a favorable determination letter will not be
issued). Each Employee Benefit Plan that is intended to be qualified under
Section 401(a) of the Code has been timely amended to reflect the provisions of
all statutory or regulatory changes requiring amendments for which the deadline
for amendment has passed. No event has occurred that will or could give rise to
the revocation of any applicable determination letter or the loss of the right
to rely on any applicable opinion or advisory letter, or the disqualification or
loss of tax-exempt status of any such Employee Benefit Plan or trust under
Sections 401(a) or 501(a) of the Code. 

(g) Except as set forth in Schedule 4.20, no Employee
Benefit Plan provides for or continues medical or health benefits, or life
insurance or other welfare benefits (through insurance or otherwise) for any
person or any dependent or beneficiary of any person after such person’s
retirement or other termination of employment except as may be required by COBRA
or applicable state Law, and there has been no communication to any person that
could reasonably be expected to promise or guarantee any such benefits.

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(h) No
condition exists as a result of which Seller or any ERISA Affiliate would have
any Liability, whether absolute or contingent, including any obligations under
the Employee Benefit Plans, with respect to any misclassification of a Person
performing services for Seller or an ERISA Affiliate as an independent
contractor or the employee of another entity rather than as an employee of
Seller or an ERISA Affiliate. 

(i) Since January 1, 2015, Seller and its ERISA Affiliates have offered
minimum essential coverage (as described in Section 4980H of the Code) to their
common law employees who must be treated as “full-time employees” under Section
4980H of the Code and its implementing regulations, and such coverage has
satisfied the affordability and minimum value standards under Section 4980H of
the Code and its implementing regulations. 

(j) No
common law employee of Seller or any ERISA Affiliate has been awarded an
applicable premium tax credit or cost-sharing reduction, as such terms are
defined under Section 4980H of the Code, with respect to health insurance
coverage purchased in a state or federal health insurance marketplace (also
known as an “exchange”) and neither Seller nor any ERISA Affiliate has
heretofore been and reasonably does not expect to be subject to any penalty
under Section 4980H of the Code with respect to any period prior to the Closing.

(k) Neither the execution of this Agreement nor the consummation of the
transactions contemplated by this Agreement will (either alone or upon the
occurrence of any additional or subsequent events): (i) entitle any individual
to severance pay or any other payment; (ii) accelerate the time of payment,
funding or vesting (other than vesting required due to the termination of
tax-qualified retirement plans, which shall not require an additional
contribution to such plans), or increase the amount of compensation due to any
such individual; (iii) increase the amount payable under or result in any other
material obligation pursuant to any Employee Benefit Plan; or (iv) result in
“excess parachute payments” within the meaning of Section 280G(b) of the Code.
No person is entitled to receive any additional payment (including any tax
gross-up or other payment) as a result of the imposition of the excise Taxes
required by Section 4999 of the Code. 

(l) Each Employee Benefit Plan that is a “nonqualified deferred compensation
plan” (as defined in Section 409A(d)(1) of the Code) has been operated since
January 1, 2005, in compliance with the applicable provisions of Section 409A of
the Code, and since January 1, 2009 has been in documentary compliance with the
applicable provisions of Section 409A of the Code; and neither Seller nor any
ERISA Affiliate is or has been required to report any Taxes due as a result of a
failure of an Employee Benefit Plan to comply with Section 409A of the Code.
With respect to each Employee Benefit Plan, neither Seller nor any ERISA
Affiliate has any indemnity obligation for any Taxes or interest imposed or
accelerated under Section 409A of the Code. 

4.21 Environmental Matters.
Seller is in compliance in all material respects with all applicable
Environmental Laws. Neither Seller nor either Shareholder has received any
notice of any violation of Environmental Laws. Seller has not used the Leased
Real Property in any manner at any previous time for the storage, disposal,
treatment, processing, production, refinement, generation or other handling of,
any Hazardous Substances, except such Hazardous Substances that are used in the
ordinary course of Seller’s Business in compliance with all applicable
Environmental Laws. Neither Seller nor any of its employees or agents, has ever
disposed of liquid, solid or semi-solid wastes on the Leased Real Property or on
any other premises on which the Business is or was conducted. To the Knowledge
of Seller and the Shareholders, no portion of the Paxinos Property contains, or
has been used in any manner at any previous time for the storage, disposal,
treatment, processing, production, refinement, generation or other handling of
(except in the ordinary course of business in compliance with applicable
Environmental Laws), any Hazardous Substances. 

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4.22 Real Property.

(a) Except for its interest in the Leased Real Property, Seller does not own
any right, title or interest in any real property nor has Seller ever owned any
real property.

(b) Schedule 4.22 contains a
list of all of the real property leased (or otherwise used) by Seller in
connection with the Business (collectively, the “Leased Real Property”), and identifies each Contract under which such
real property is leased (the “Existing Leases”).
Seller has delivered to Buyer true, correct and complete copies of the written
Existing Leases, including all amendments, modifications, notices or memoranda
of lease thereto, and a written description of the terms of all oral Existing
Leases.

(c) With respect to each parcel of the Leased Real Property, except as
limited to the Paxinos Property below or as set forth in Schedule 4.22, (i) the buildings and improvements included in
the Paxinos Property (including, without limitation, the roof, the walls and all
plumbing, wiring, electrical, heating, air conditioning, fire protection and
other systems, as well as all paved areas, included therein or located thereat)
are in good working order, condition and repair, reasonable wear and tear
excepted, and are not in need of maintenance or repairs except for maintenance
or repairs which are routine, ordinary and are not material in costs; (ii)
Seller has received all approvals of all Governmental Authorities (including
Permits) required in connection with Seller’s use and operation of the Leased
Real Property, and Seller has operated and maintained the Leased Real Property
in accordance with all applicable Laws; (iii) there are no Contracts granting to
any person or entity (other than Seller) the right of use or occupancy of any
portion of the Leased Real Property, and there are no Persons (other than
Seller) in possession of any of the Leased Real Property, excepting home offices
or Leased Real Property that is shared use or multi-tenant property; and (iv)
there are no outstanding options or rights of first refusal or similar rights to
purchase any of the Leased Real Property or any portion thereof or interest
therein. To the Knowledge of Seller and the Shareholders, no event or condition
currently exists which would create a legal or other impediment to the use of
any of the Leased Real Property as currently used, or would increase the
additional charges or other sums payable by the tenant under any Existing Lease
(including, without limitation, any pending Tax reassessment or other special
assessment affecting the Leased Real Property). Neither Seller nor either
Shareholder has received notice from any Governmental Authority of any
violations of any Law affecting any portion of the Leased Real Property. The
Leased Real Property is sufficient for the continued conduct of the Business
after the Closing in substantially the same manner as conducted prior to the
Closing and constitutes all of the real property necessary to conduct the
Business as currently conducted. 

21

4.23 Product and Service Warranties. Except as set forth in Schedule 4.23, and except
for warranties under applicable Law (if any) or warranties set forth in the
Customer Contracts or Customer Purchase Orders and Quotes that Buyer made
available to Seller prior to Closing, (a) there are no warranties, express or
implied, written or oral, with respect to the products and services of the
Business, and (b) there are no pending or, to the Knowledge of Seller and the
Shareholders, threatened claims or Liabilities with respect to any such
warranties. Schedule
4.23 described the terms and
conditions of any standard warranties made by Buyer in the Customer Contracts
and Customer Purchase Orders and Quotes. 

4.24 Relationship with Customers and Suppliers. Seller has delivered to Buyer a true, correct
and complete list of each customer of Seller to whom Seller sold products or
services during the year ended December 31, 2013, the year ended December 31,
2014, or the current year, together with, in each case, the amount billed during
such periods (each, a “Customer”). Seller and
the Shareholders have not received notice from any Customer that such Customer
is canceling or otherwise materially reducing its usage or purchase of the
products and services of Seller, except as set forth in Schedule 4.24. To the Knowledge of Seller and the Shareholders,
no current supplier to Seller of items material to the conduct of the Business
has threatened to terminate or change the terms of its business relationship
with Seller for any reason.

4.25 Officers, Directors and Shareholders. Except as set forth on Schedule 4.25, Seller does not have any business relationship,
whether under any Contract or otherwise, with any Person who is an officer,
director or shareholder of Seller, or any of their respective spouses, children
or Affiliates, other than employment relationships in the ordinary course of
business. Except as set forth on Schedule 4.25, no officer,
director or shareholder of Seller, nor any spouse, child or Affiliate thereof,
has any interest in any competitor, supplier or customer of Seller, except for
immaterial interests in publicly held companies. 

4.26 Brokers and Finders.
Except as set forth on Schedule
4.26, neither Seller nor either
Shareholder nor any of their respective officers, directors, employees or agents
has employed any broker or finder or incurred any Liability for any brokerage
fees, commissions or finders’ fees in connection with the transactions
contemplated hereby. 

4.27 Material Misstatements or Omissions. No representation or warranty of Seller or
either Shareholder made in this Agreement, nor any Schedule, document,
statement, certificate or other information furnished or to be furnished to
Buyer by or on behalf of Seller or either Shareholder pursuant hereto or in
connection with the transactions contemplated hereby, contains (or will when
furnished contain) any untrue statement of a material fact, or omits (or will
then omit) to state a material fact necessary in order to make the statement of
facts made therein not misleading. 

ARTICLE V.
BUYER’S REPRESENTATIONS AND WARRANTIES

Buyer represents and warrants
to Seller and each Shareholder, as of the Closing Date, as follows: 

5.1 Organization, Standing and Power. Buyer is a corporation duly formed, validly existing and in good
standing under the Laws of the State of Ohio. Buyer has all necessary corporate power and authority
to execute and deliver this Agreement and each other Transaction Document to
which Buyer is a party, to comply with the provisions hereof and thereof and to
consummate the transactions contemplated hereby and thereby.

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5.2 Authority for Transaction.
Buyer’s execution and delivery of this Agreement and each other Transaction
Document to which Buyer is a party, its compliance with the provisions hereof
and thereof and the consummation of all of the transactions contemplated hereby
and thereby have been duly and validly authorized by all necessary corporate
action on the part of Buyer, and this Agreement and each other Transaction
Document to which Buyer is a party is valid and binding upon Buyer in accordance
with their respective terms. 

5.3 No Conflict. Neither the
execution and delivery of this Agreement or any other Transaction Document by
Buyer, nor compliance by Buyer with any of the provisions hereof or thereof, nor
the consummation of the transactions contemplated hereby or thereby will:

(a) conflict with or result in a breach of any provision of Buyer’s articles
of incorporation or code of regulations; 

(b) result in a default, or give rise to any right of termination,
cancellation or acceleration, under any term, condition or provision of any
Contract, Encumbrance or other instrument or obligation to which Buyer is a
party or by which it or any of its properties or assets may be bound;

(c) violate any Governmental Order or Law applicable to Buyer or any of its
properties or assets; or 

(d) require any consent, waiver or approval by, notice to or filing with any
Person, except for such consents, waivers, approvals, notices or filings set
forth in Schedule
5.3, all of have been obtained,
given or made. 

5.4 Legal Proceedings. There
is no Action pending or, to the Knowledge of Buyer, threatened against or
affecting Buyer or any of its assets which, if adversely determined, would
adversely affect the ability of Buyer to consummate the transactions
contemplated hereby. 

5.5 Brokers and Finders.
Neither Buyer nor any of its officers, directors, employees or agents has
employed any broker or finder or incurred any liability for any brokerage fees,
commissions or finders’ fees in connection with the transactions contemplated
hereby. 

5.6 Material Misstatements or Omissions. No representation or warranty of Buyer made in
this Agreement, nor any Schedule, document, statement, certificate or other
information furnished or to be furnished to Seller or either Shareholder by or
on behalf of Buyer pursuant hereto or in connection with the transactions
contemplated hereby, contains (or will when furnished contain) any untrue
statement of a material fact, or omits (or will then omit) to state a material
fact necessary in order to make the statement of facts made therein not
misleading. 

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ARTICLE VI.
SURVIVAL AND INDEMNIFICATION 

6.1 Survival or Representations, Warranties and Covenants. Subject to the provisions of this Agreement, the
representations and warranties contained in this Agreement shall survive the
Closing and shall remain in full force and effect until the date that is 18
months from the Closing Date; provided, however, that the representations and
warranties in Section 4.1, Section 4.2, Section 4.7, Section 4.17, Section 4.20,
Section 4.21, Section 5.1 and Section 5.2 (collectively, the “Fundamental Representations”) shall survive for the full period of all
applicable statutes of limitations (giving effect to any waiver, mitigation or
extension thereof). All covenants and agreements of the Parties contained herein
shall survive the Closing indefinitely or for the period explicitly specified
therein. 

6.2 Indemnification by Seller and Shareholders. Subject to all of the terms and conditions of
this Agreement including, without limitation, Section 6.4, Seller and each
Shareholder jointly and severally agree to defend, indemnify and hold harmless
each of Buyer and its Affiliates and their respective Representatives,
successors and assigns (collectively, the “Buyer Indemnified Parties”), from and against any and all Losses suffered,
sustained, incurred or required to be paid by any Buyer Indemnified Party
arising out of, based upon, in connection with or as a result of: 

(a) any Liability, other than the Assumed Liabilities;

(b) any failure or breach of any representation or warranty of Seller or
either Shareholder made in this Agreement or any other Transaction Document;

(c) any breach or nonfulfillment of any covenant or agreement of Seller or
either Shareholder made in this Agreement or in any other Transaction
Document;

(d) any Excluded Asset;

(e) any arrangements or agreements made or alleged to have been made by
Seller or either Shareholder with any broker, finder or other agent in
connection with the transactions contemplated by this Agreement; or 

(f) the Parties’ non-compliance with any applicable Laws of the State of
Pennsylvania pertaining to “bulk transfers” including, without limitation, the
Pennsylvania Fiscal Bulk Sales Act, 72 P.S. §1403. 

6.3 Indemnification by Buyer.
Subject to all of the terms and conditions of this Agreement including, without
limitation, Section 6.4, Buyer shall be responsible for, and hereby agrees to
defend, indemnify and hold harmless Seller and each Shareholder and their
respective Representatives, successors and assigns (collectively,
“Seller Indemnified
Parties”), from and against
any and all Losses suffered, sustained, incurred or required to be paid by any
Seller Indemnified Party arising out of, based upon, in connection with or as a
result of: 

(a) any Assumed Liability; 

24

(b) any failure or breach of any representation or warranty of Buyer made in
this Agreement or any other Transaction Document; or 

(c) any breach or nonfulfillment of any covenant or agreement of Buyer made
in this Agreement or any other Transaction Document. 

6.4 Limitations on Indemnification.

(a) Notwithstanding the provisions of Section 6.2 and except as provided in
Section 6.4(b), Sellers and the Shareholders shall have no liability for
indemnification for breaches of representations and warranties (other than the
Fundamental Representations) pursuant to Section 6.2(b) unless and until the
aggregate amount of Losses incurred by the Buyer Indemnified Parties relating to
claims for breaches of such representations and warranties exceed $25,000 (the
“Basket”), at which time Seller and the Shareholders shall
be obligated to indemnify the Buyer Indemnified Parties for all such Losses from
the first dollar, and not merely Losses in excess of the Basket. Notwithstanding
the provisions of Section 6.2 and except as provided in Section 6.4(b), the
aggregate liability of Seller and the Shareholders under 6.2(b) for Losses
arising from breaches of representations and warranties (other than the
Fundamental Representations) shall not exceed, in the aggregate, an amount equal
to 25% of the Purchase Price
(the “Cap”).

(b) Notwithstanding the provisions of Section 6.4(a), neither the Basket nor
the Cap shall apply to (i) Seller’s and Shareholders’ indemnification
obligations with respect to the matters set forth in Section 6.2(a), Section
6.2(c), Section 6.2(d), Section 6.2(e), or Section 6.2(f), (ii) any breach of
the Fundamental Representations; (iii) any amounts payable with respect to the
Uncollected Receivables pursuant to Section 8.9; or (iv) any facts or
circumstances which constitute fraud, intentional misrepresentation or willful
misconduct by Seller or the Shareholders. 

(c) The obligation of Seller and Shareholders to indemnify Buyer Indemnified
Parties under Section 6.2(b) shall expire, with respect to any representation or
warranty, on the date on which the survival of such representation or warranty
shall expire in accordance with Section 6.1, except with respect to any Notice
of Claim which any Buyer Indemnified Parties have delivered to Seller and the
Shareholders prior to such date, in which case the obligation of Seller and the
Shareholders to indemnify Buyer Indemnified Parties shall continue until any
Losses payable to Buyer Indemnified Parties with respect to such Notice of Claim
are finally determined. Notwithstanding anything in this Agreement to the contrary, any claims
based on any facts or circumstances which constitute fraud, intentional
misrepresentation or willful misconduct by Seller or the Shareholders shall not
be subject to the time limitations set forth in this Section.

(d) The obligation of Buyer to indemnify Seller Indemnified Parties under
Section 6.3(b) shall expire, with respect to any representation or warranty, on
the date on which the survival of such representation or warranty shall expire
in accordance with Section 6.1, except with respect to any Notice of Claim which
any Seller Indemnified Parties have delivered to Buyer prior to such date, in
which case the obligation Buyer to indemnify Seller Indemnified Parties shall
continue until any Losses payable to Seller Indemnified Parties with respect to
such Notice of Claim are finally determined. Notwithstanding anything in this
Agreement to the contrary, any claims based on any facts or circumstances which
constitute fraud, intentional misrepresentation or willful misconduct by Buyer shall not be subject to the time
limitations set forth in this Section.

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(e) Except as otherwise provided in this Section 6.4(e), the rights and
remedies that a Party may have against another Party for claims for a breach of
any representation, warranty, covenant or obligation under this Agreement are
exclusively governed by this Agreement. Except as otherwise provided in this
Section 6.4(e), to the extent permitted by applicable Law, any further claims
and remedies, irrespective of the nature, amount or legal basis, are hereby
expressly waived and excluded; provided, however, that nothing in this Section
6.4(e) shall limit any Person’s right to seek and obtain (a) any equitable
relief (including claims for specific performance, injunctive relief or other
equitable remedy) to which any Person shall be entitled or (b) any remedy on
account of any Party’s fraud, intentional misrepresentation or willful
misconduct; or (c) any rights or remedies available to any Party under or in
respect of the other Transaction Documents.

6.5 Indemnification Claim Procedures.

(a) If
any Buyer Indemnified Party or Seller Indemnified Party (an “Indemnified Party”) believes that it has suffered or incurred or
will suffer or incur any Losses for which it is entitled to indemnification
under this Article VI, such Indemnified Party shall deliver to the Party or
Parties from whom indemnification is being claimed (an “Indemnifying Party”) reasonably prompt written notice of such claim
setting forth, in reasonable detail, the nature and basis of the claim and the
amount thereof, to the extent known, and any other relevant information in the
possession of the Indemnified Party (a “Notice of Claim”).
The Notice of Claim shall be accompanied by any relevant documents in the
possession of the Indemnified Party relating to the claim. Subject to the
provisions of this Agreement including, without limitation, 6.4(c) and Section
6.4(d), the failure of an Indemnified Party to give any Notice of Claim required
by this Section shall not affect any of such Party’s rights under this Article
VI or otherwise except and to the extent that such failure is actually
prejudicial to the rights and obligations of the Indemnifying Party.
Notwithstanding anything herein to the contrary, if any Notice of Claim relates
to a Third Party Action, the procedures of Section 6.5(d) shall apply to such
Third Party Action.

(b) After an Indemnified Party has delivered a Notice of Claim requesting
payment from an Indemnifying Party for any Losses, the Indemnifying Party shall,
within 30 days of receipt of such Notice of Claim, (i) pay to the Indemnified
Party, in immediately available funds, the amount of Losses, or (ii) deliver to
the Indemnified Party written notice (a “Dispute Notice”) advising the Indemnified Party that it disputes
the claim for indemnification. If, within 30 days of receipt of such Notice of
Claim, the Indemnifying Party fails to pay said amount to the Indemnified Party
or deliver to the Indemnified Party a Dispute Notice the Indemnifying Party
shall be deemed to have accepted and agreed to such claim for indemnification (a
“Deemed
Acceptance”) and the
Indemnified Party may exercise any and all legal or equitable remedies available
to the Indemnified Party under this Agreement or otherwise with respect to such
Losses.

(c) If, within such 30 day period following receipt of the Notice of Claim,
the Indemnifying Party delivers a Dispute Notice with respect to the Indemnified
Party’s claim for indemnification for Losses, the Indemnifying Party and the
Indemnified Party agree that, prior to commencing any litigation or other
proceedings against the other concerning any matter in which such Party intends to claim a right of
indemnification, they will negotiate in good faith to resolve any dispute with
respect to such claim and to provide each other with all relevant information
relating to such dispute. If the Indemnifying Party and the Indemnified Party
are unable to resolve any such dispute within 30 days of the delivery of a
Dispute Notice (or such longer period as the Parties may agree upon), the
Indemnifying Party or the Indemnified Party may thereafter commence litigation
or other proceedings to resolve such dispute. The successful Party in any such
proceeding shall be entitled to reimbursement from the non-successful Party for
any and all of the successful Party’s costs and expenses including, without
limitation, reasonable attorneys’ fees, incurred in connection with such
proceeding. 

26

(d) If
any Notice of Claim relates to any Action against any Indemnified Party by a
third party (a “Third Party
Action”), the Indemnifying
Party shall be entitled to participate in the such Third Party Action and, at
its option, assume the defense thereof with its own counsel (to be reasonably
satisfactory to the Indemnified Party), at the Indemnifying Party’s sole
expense, by providing written notice to the Indemnified Party delivered within
30 days after the Indemnifying Party receives the Notice of Claim; provided,
however, that the Indemnifying Party shall not have the right to assume the
defense of any Third Party Action if the Indemnified Party shall have one or
more legal or equitable defenses available to the Indemnified Party which are
different from or in addition to those available to the Indemnifying Party, and,
in the reasonable opinion of counsel for the Indemnified Party, counsel for the
Indemnifying Party could not adequately represent the interests of the
Indemnified Party because such interests could be in conflict with those of the
Indemnifying Party. If the Indemnifying Party shall assume the defense of any
Third Party Action, the Indemnified Party shall be entitled to participate in
any Third Party Action at its expense. The Indemnifying Party shall not consent
to the entry of a judgment with respect to the Third Party Action or enter into
any settlement that involves anything other than the payment of money by the
Indemnified Party without the Indemnified Party’s prior written consent (which
shall not be unreasonably withheld or delayed). Whether or not the Indemnifying
Party assumes the defense of any Third Party Action, the Indemnified Party shall
not admit any liability with respect to, or settle, compromise or discharge,
such Third Party Action without the Indemnifying Party’s prior written consent
(which consent shall not be unreasonably withheld). The Indemnified Party shall provide the Indemnifying
Party with access to its records and personnel relating to any such Third Party
Action during normal business hours and shall otherwise cooperate with the
Indemnifying Party in the defense or settlement thereof. 

6.6 Recoupment Against Holdback. Subject to the notice, dispute and other procedures in Section 6.5,
Seller and the Shareholders agree that any payments which may be due to Seller
from Buyer pursuant to Section 2.7 with respect to the Security Holdback Amount
may be used by Buyer to satisfy (i) Seller’s indemnification obligations with
respect to any claim for Losses required to be paid by Seller or the
Shareholders pursuant to Section 6.2; and (ii) any obligation of Seller or the
Shareholders to pay Buyer the Net Adjustment Amount pursuant to Section 2.6(d),
which right may be exercised at any time after the Net Adjustment Amount is
determined in accordance with Section 2.6(b) (provided Seller and the
Shareholders do not otherwise timely pay the Net Adjustment Amount to Buyer
pursuant to Section 2.6(d)). If, at the time payment of the Security Holdback
Amount is due to Seller pursuant to Section 2.7, there is a pending claim by
Buyer against Seller or the Shareholders for indemnification pursuant to Section
6.2 or a claim by Buyer for payment of the Net Adjustment Amount under Section
2.6(d), then Buyer may withhold from the payment of the Security Holdback Amount
then due to Seller an amount that Buyer
reasonably deems necessary to fully satisfy such claim, and instead hold such
amount until there is a final resolution of such claim (at which time Buyer may
set off the amount necessary to satisfy the claim, and pay the balance, if any,
to Seller). Any portion of the Security Holdback Amount not so set-off or held
pursuant to this Section 6.6 shall be timely paid to Seller when due pursuant to
Section 2.7. 

27

6.7 Tax Treatment of Indemnification Payments. All indemnification payments made under this
Agreement shall be treated by the Parties as an adjustment to the Purchase Price
for Tax purposes, unless otherwise required by Law. For example, indemnification
payments made by Seller or the Shareholders shall be treated as a reduction of
the Purchase Price. 

6.8 Effect of Investigation.
The representations, warranties and covenants of the Indemnifying Party, and the
Indemnified Party’s right to indemnification with respect thereto, shall not be
affected or deemed waived by reason of any investigation made by or on behalf of
the Indemnified Party (including by any of its Representatives).

ARTICLE VII.
CLOSING 

7.1 Closing. The Closing shall
take place simultaneously with the execution of this Agreement on the date of
this Agreement; provided, however, that the Closing shall be deemed to have
occurred on, and to be effective as of, December 31, 2015 (the “Closing Date”). For all purposes
hereunder the Closing shall be deemed effective as of 11:59 p.m. on the Closing
Date. The Closing shall take place at a location acceptable to the Parties, and
may be completed remotely through the exchange of signature pages by electronic
means. The Parties shall take such actions, including the delivery of documents
in escrow or by facsimile or e-mail, in order to facilitate completion on the
Closing Date of all of the transactions contemplated hereby. Each Party’s
obligations to consummate the transactions contemplated pursuant to this
Agreement shall be conditioned on the other Party delivering at the Closing each
of the documents or items required to be delivered by such other Party under
Section 7.2 or Section 7.3, as applicable.

7.2 Closing Deliveries of Seller and Shareholders. At (or prior to) the Closing, Seller and the
Shareholders shall deliver to Buyer the following: 

(a) A
certificate, duly executed by the Secretary of Seller, containing true, correct
and complete copies of the following: 

(i) Certificate of the Secretary of the State of Pennsylvania, attesting to
the good standing of Seller in such jurisdiction as of a date reasonably
proximate to the Closing Date; 

(ii) A
copy of the certificate of incorporation of Seller and of all amendments
thereto, certified by the Secretary of the State of Pennsylvania; 

(iii) A
copy of the by-laws of the Seller as amended through the Closing Date; and

(iv) a
copy of all actions taken by Seller’s Board of Directors and by the Shareholders
approving this Agreement and the transactions contemplated hereby; 

28

(b) A
Bill of Sale, duly executed by Seller, in a form reasonably acceptable to Buyer
and Seller, conveying the Purchased Assets to Buyer free and clear of all
Encumbrances; 

(c) Certificates of title for all title motor vehicles included in the
Purchased Assets, duly endorsed for transfer to Buyer; 

(d) An
Assignment and Assumption Agreement, duly executed by Seller, with respect to
each of the Assigned Contracts, in a form reasonably acceptable to Buyer and
Seller (the “Assignment and
Assumption Agreement”),
together with all consents and approvals as may be required in connection with
the assignment by Seller and the assumption by Buyer of the Assigned Contracts;

(e) A
written acceptance of an Employment Confirmation Letter, duly executed by each
Shareholder, as provided in Section 8.5; 

(f) A
Restrictive Covenant Agreement, duly executed by Seller and each Shareholder;

(g) The Paxinos Lease, duly executed by the Landlord; 

(h) The Closing Statement, duly executed by Seller and each Shareholder; and 

(i) Such other instruments and documents necessary to transfer title in the
Purchased Assets to the Buyer or to consummate any of the other transactions
contemplated hereby as shall have been reasonably requested by counsel to Buyer
on or before the Closing Date.

7.3 Closing Deliveries of Buyer. At (or prior to) the Closing, Buyer shall deliver to Seller and the
Shareholders the following: 

(a) The Closing Cash Payment; 

(b) The Paxinos Lease, duly executed by Buyer; 

(c) The Assignment and Assumption Agreement, duly executed by Buyer;

(d) An
Employment Confirmation Letter for each Shareholder, duly executed by Buyer, as
provided in Section 8.5;

(e) The Closing Statement, duly executed by Buyer; and 

(f) Such other instruments and documents necessary to consummate any of the
transactions contemplated hereby as shall have been reasonably requested by
counsel to Seller on or before the Closing Date. 

29

ARTICLE VIII.
FURTHER COVENANTS 

8.1 Taxes on Transaction. All
sales or use Taxes payable by reason of the sale and transfer of any of the
Purchased Assets hereunder shall be paid by Buyer.

8.2 Expenses of the Parties.
Except as otherwise expressly provided in this Agreement, all expenses involved
in the preparation, negotiation, authorization and consummation of this
Agreement and the transactions contemplated hereby, including all fees and
expenses of Representatives, shall be borne solely by the Party who shall have
incurred the same, and no other Party shall have any responsibility with respect
thereto. 

8.3 Confidentiality. Except
for necessary disclosure to such Party’s directors, officers, employees,
counsel, accountants, bankers and other agents, and except for the disclosure
contemplated by Section 8.6 or this Section 8.3, each Party shall keep the
provisions of this Agreement confidential both prior and subsequent to the
Closing Date. Without limiting the generality of the foregoing, no Party shall
make any press release or announcement with respect to the transactions
contemplated hereby without the prior consent of Buyer and Seller, unless such
Party determines, upon the advice of counsel, that such action is required by
Law or the rules or regulations of any stock exchange or relevant Governmental
Authority to which such party is subject.

8.4 Non-Disclosure; Non-Solicitation and Non-Competition. At the Closing, Seller and each Shareholder
shall execute a Non-Competition, Non-Solicitation and Non-Disclosure Agreement
in favor of Buyer in the form attached hereto as Exhibit B (each, a “Restrictive Covenant
Agreement”). 

8.5 Employment of Shareholders. At the Closing, Buyer and each Shareholder shall execute an employment
confirmation letter on terms mutually acceptable to Buyer and such Shareholder,
whereby such Shareholder will agree to become an employee of Buyer after the
Closing (the “Employment
Confirmation Letters”).

8.6 Notices to and Consents of Third Parties. Each of Buyer, Seller and the Shareholders shall
in a timely fashion give all notices to and make all filings with all
governmental authorities and other Persons required to be given or made by such
Party under any license, authorization, Contract or other instrument or
otherwise in connection with the transactions contemplated by this Agreement
including, without limitation, those described on Schedule 4.3 and Schedule 5.3.

8.7 Further Assurances. Each
Party shall cooperate with the others, take such further action, and execute and
deliver such further documents, as may be reasonably requested by any other
Party in order to carry out the terms and purposes of this Agreement. Without
limiting the generality of the foregoing, from and after the Closing Date:

(a) Each Party shall file all Tax Returns consistent with the allocation of
the Purchase Price set forth in Schedule 2.4, and no Party
shall take any position on audit or in litigation which is inconsistent with
such allocation if such position would result in the payment of any additional
Tax by, or the disallowance of any deduction or credit to, any other Party; and

(b) On
the request of Buyer, Seller and the Shareholders shall take such action and
deliver to Buyer such further instruments of assignment, conveyance or transfer
and other documents of further assurance as in the reasonable opinion of counsel
to Buyer may be reasonably desirable to assure, complete and evidence the full
and effective transfer, conveyance and
assignment of the Purchased Assets and possession thereof to Buyer, its
successors and assigns, and the performance of this Agreement by Seller and the
Shareholders in all respects. In addition, on the request of Buyer, Seller and
the Shareholders shall provide Buyer with such advice and assistance as may be
reasonably necessary or appropriate to convey to Buyer the proprietary
information, know-how and other intellectual property included in the Purchased
Assets. 

30

8.8 Employees and COBRA Compliance. Whether or not Buyer hires after the Closing any employees of Seller
(including the Shareholders), Seller shall be responsible for all compensation
and benefits (including, without limitation, salary, bonus, accrued vacation,
any benefits attributable to compensation and service earned prior to the
Closing, and sick pay) accruing prior to the Closing Date. Without limiting the
generality of Section 3.2, Buyer is not assuming any obligations or Liability
(i) to any of Seller’s employees for sick or vacation pay or other benefits, or
(ii) under any Employee Benefit Plan. Seller agrees and acknowledges that all
COBRA obligations arising with respect to the Purchased Assets or Seller’s
Business prior to or in connection with the transactions contemplated by this
Agreement are and shall remain the sole responsibility of Seller, regardless of
which Party is responsible under the COBRA regulations. Notwithstanding the
foregoing, in no event will Seller have any Cobra obligations with respect to an
individual who experiences a COBRA qualifying event under Buyer’s group health
plan.

8.9 Uncollected Receivables.
If, during the 180 day period beginning on the day immediately following the
Closing Date (the “Collection
Period”), Buyer does not
collect in full any of the Accounts Receivable of Seller (as reduced by the
amounts of any applicable discounts that the Customer is entitled to pursuant to
the applicable Customer Contracts or Customer Purchase Orders and Quotes)
included in the Purchased Assets, then Buyer shall deliver to Seller and the
Shareholders written notice identifying all such Accounts Receivable that were
not so collected (“Uncollected
Receivables”). The
Uncollected Receivables shall not be included in the Closing Date AR Value for
purposes of calculating the Final Closing Date AR Value pursuant to Section
2.6(b). Buyer shall assign, without recourse, the Uncollected Receivables to
Seller, and Seller and the Shareholders shall thereafter be entitled to take
reasonable actions to collect, for Seller’s and the Shareholders’ benefit, the
Uncollected Receivables. During the Collection Period, Buyer shall use
commercially reasonable efforts to collect the Accounts Receivable (but Buyer
shall not be obligated to bring collection actions to collect any such accounts
from an account debtor). Buyer shall apply amounts received during the
Collection Period from customers in payment of accounts receivables (including
the Accounts Receivable) to the specific outstanding invoice to which such
payment relates. 

ARTICLE IX.
GENERAL PROVISIONS 

9.1 Amendment and Waiver. This
Agreement may be amended only by a writing executed by each of the Parties. No
waiver of compliance with any provision or condition hereof, and no consent
provided for herein, shall be effective unless evidenced by an instrument in
writing duly executed by the Party sought to be charged therewith. No failure on
the part of any Party to exercise, and no delay in exercising, any of its rights
hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise by any Party of any right preclude any other or future exercise thereof
or the exercise of any other right. 

31

9.2 Assignment. No Party shall
assign or attempt to assign any of its rights or obligations under this
Agreement without the prior written consent of each of the other Parties.

9.3 Notices. Each notice,
report, demand, waiver, consent and other communication required or permitted to
be given hereunder shall be in writing and shall be sent either by registered or
certified first-class mail, postage prepaid and return receipt requested, or by
Facsimile or e-mail, addressed as follows: 

	       	If to Buyer:	Transcat, Inc.
				35
      Vantage Point Drive
				Rochester, New York 14624
				Attention: John J. Zimmer, CFO
	 			Fax:
      (585) 352-7788
				e-mail: jzimmer@transcat.com
			 
		with a copy to:	Harter, Secrest & Emery LLP
		 		1600
      Bausch & Lomb Place
				Rochester, New York 14604
				Attention: James M. Jenkins, Esq.
				Fax:
      (585) 232-2152
				e-mail: jjenkins@hselaw.com
			 
		If to Seller:	Spectrum Technologies, Inc.
				3045
      Irish Valley Road
				Paxinos PA 17860
				Attention: Brian Hubler, President
				e-mail: dives@ptd.net
			 
		If to the Shareholders, to their addresses
      identified on Schedule
      4.1:
			 
		     	in the case of Seller and each Shareholder,  
			with
      a copy
      to:          	Williamson, Friedberg & Jones
				10
      Westwood Rd
				Pottsville, Pennsylvania 17901
				Attention: David Rattigan, Esq.
				Fax:
      (570) 622-5033
				e-mail: drattigan@wfjlaw.net

Each such notice and other
communication given by mail shall be deemed to have been given when it is
deposited in the United States mail in the manner specified herein, and each
such notice and other communication given by e-mail shall be deemed to have been
given when it is so transmitted and the appropriate answerback is received. Any
Party may change its address for the purpose hereof by giving notice in
accordance with the provisions of this Section 9.3. 

9.4 Binding Effect. Subject to
the provisions of Section 9.2, this Agreement shall be binding upon and shall
inure to the benefit of the Parties and their respective successors and permitted assigns. This Agreement creates no
rights of any nature in any Person not a party hereto. 

32

9.5 Governing Law; Venue. This
Agreement shall be governed by and construed in accordance with the Laws of the
State of New York applicable to agreements made and to be performed entirely
within such State. Any legal suit, action or proceeding arising out of or
related to this Agreement or the matters contemplated hereunder shall be
instituted exclusively in the federal courts of the United States or the courts
of the State of New York in each case located in the City of Rochester and
County of Monroe, and each Party irrevocably submits to the exclusive
jurisdiction of such courts in any such suit, action or proceeding and waives
any objection based on improper venue or forum non conveniens.
Service of process, summons, notice or other document by mail to such Party’s
address set forth herein shall be effective service of process for any suit,
action or other proceeding brought in any such court. Each Party hereby waives
the right to a trial by jury.

9.6 Effect of Agreement. This
Agreement sets forth the entire understanding of the Parties with respect to the
subject matter hereof, and supersedes any and all prior agreements, arrangements
and understandings, written or oral, relating to the subject matter hereof.

9.7 Severability. Whenever
possible, each provision of this Agreement shall be interpreted in such manner
as to be effective and valid under applicable Law, but if any provision of this
Agreement shall be prohibited or invalid under applicable Law, such provision
shall be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this
Agreement. 

9.8 Negotiated Transaction.
The provisions of this Agreement were negotiated by the Parties hereto and this
Agreement shall be deemed to have been drafted by all the Parties hereto,
notwithstanding any presumptions at law to the contrary. Each of the Parties
hereto has had the opportunity to seek legal and/or other professional counsel
in connection with the negotiation and drafting of this Agreement and with
respect to the consummation of the transactions contemplated hereby. 

9.9 Headings; Counterparts.
The Article and Section headings of this Agreement are for convenience of
reference only and do not form a part hereof and do not in any way modify,
interpret or construe the intention of the Parties. This Agreement may be
executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

[Signature page follows]

33

In Witness Whereof, the
Parties have duly executed this Agreement on the date first written above.

		Transcat, Inc.
		 	
		 	
		By:     	/s/ John J.
      Zimmer	 
			John J. Zimmer, Vice President, Finance and
      CFO
		 
		 
		Spectrum Technologies, Inc.
		 	
		 	
	 	By:	/s/ Brian E.
      Hubler	 
			Brian E. Hubler, President
			 
			 
			/s/ Brian E.
      Hubler	 
			Brian E. Hubler
			 
			 
			/s/ Kenneth E.
      Horvath	 
			Kenneth E.
Horvath

34

Table of Schedules and Exhibits 

Upon request, Transcat, Inc.
will furnish supplementally a copy of any schedule or exhibit to this Asset
Purchase Agreement to the Securities and Exchange Commission. 

Schedules
Schedule
2.1(b) – Tangible Personal Property
Schedule 2.1(c) – Inventory
Schedule 2.1(d) – Accounts
Receivable
Schedule 2.1(e) - Deposits and Prepaid Expenses
Schedule 2.1(f)
- Assigned Contracts
Schedule 2.1(g) – Intellectual Property
Schedule 2.2
– Excluded Assets
Schedule 2.4 – Purchase Price Allocation
Schedule 4.1–
Shareholders
Schedule 4.3 – Seller
Conflicts; Rights to Terminate; Consents Required
Schedule 4.6 – Absence of Change
Schedule
4.8(b) – Compliance with Laws (Permits)
Schedule 4.14 – Breach or Default
Notices
Schedule 4.16 – Legal Proceedings
Schedule 4.18 –
Insurance
Schedule 4.19 – Labor Relations
Schedule 4.20 – Employee
Benefits
Schedule 4.21 – Environmental Matters
Schedule 4.22 – Leased Real
Property; Existing Leases; Paxinos Property
Schedule 4.23 – Product and Service Warranties
Provided; Known Warranty Claims
Schedule 4.24 - Customers and
Suppliers
Schedule 4.25 – Officers, Directors and Shareholders
Schedule
4.26 - Brokers and Finders
Schedule 5.3 – Buyer Conflicts 

Exhibits 

Exhibit A –Form of Lease
Agreement
Exhibit B - Form of
Restrictive Covenant Agreement 

35

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