Document:

exv10w1

 

Exhibit 10.1

Execution Copy

 

SERIES D INCREMENTAL LOAN AGREEMENT

dated as of

January 17, 2007

 

LAMAR ADVERTISING OF PUERTO RICO, INC.,

formerly known as “QMC Media II, Inc.”

 

JPMORGAN SECURITIES INC.,

as Sole Lead Arranger and Sole Bookrunner

 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

 

 

SERIES D INCREMENTAL LOAN AGREEMENT

          SERIES D INCREMENTAL LOAN AGREEMENT dated as of January 17, 2007 between LAMAR ADVERTISING OF
PUERTO RICO, INC., formerly known as “QMC Media II, Inc.” (the “Initial Subsidiary
Borrower”), LAMAR MEDIA CORP. (the “Company”), the SUBSIDIARY GUARANTORS party hereto
(the “Subsidiary Guarantors” and together with the Company, the “Guarantors”), the
SERIES D INCREMENTAL LENDERS party hereto and JPMORGAN CHASE BANK, N.A., as Administrative Agent
for the lenders (in such capacity, together with its successors in such capacity, the
“Administrative Agent”).

          The Company, the Subsidiary Borrowers party thereto, the Subsidiary Guarantors party thereto,
the lenders party thereto and JPMorgan Chase Bank, N.A., as the Administrative Agent, are parties
to a Credit Agreement dated as of September 30, 2005 (as heretofore amended, the “Credit
Agreement”).

          Pursuant to Section 5.02(b) of the Credit Agreement, the Company has designated Lamar
Advertising of Puerto Rico, Inc., formerly known as “QMC Media II, Inc.”, a Wholly Owned Subsidiary
(as defined in the Credit Agreement) of the Company organized under the laws of Puerto Rico, as the
“Initial Subsidiary Borrower” under the Credit Agreement. Section 2.01(c) of the Credit Agreement
contemplates that the Initial Subsidiary Borrower may request that one or more persons (which may
include the Lenders under the Credit Agreement) offer to enter into commitments to make
“Incremental Loans” under and as defined in said Section 2.01(c), subject to the conditions
specified in said Section 2.01(c). The Initial Subsidiary Borrower accordingly has requested that
$7,000,000 in aggregate principal amount of Incremental Loans under said Section 2.01(c) be made
available to it in a single series of term loans to be designated the “Series D Incremental Loans”.
The Series D Incremental Lenders (as defined below) are willing to make such loans on the terms
and conditions set forth below and in accordance with the applicable provisions of the Credit
Agreement, and accordingly, the parties hereto hereby agree as follows:

ARTICLE I

DEFINED TERMS

          Terms defined in the Credit Agreement are used herein as defined therein. In addition, the
following terms have the meanings specified below:

     “Required Series D Incremental Lenders” means Series D Incremental Lenders
having Series D Incremental Loans and unused Series D Incremental Commitments representing
at least a majority of the sum of the total Series D Incremental Loans and unused Series D
Incremental Commitments at such time.

Series D Incremental Loan Agreement

 

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     “Series D Incremental Commitment” means, with respect to each Series D
Incremental Lender, the commitment of such Lender to make Series D Incremental Loans
hereunder. The amount of each Series D Incremental Lender’s Series D Incremental Commitment
is set forth on Schedule I hereto. The aggregate original amount of the Series D
Incremental Commitments is $7,000,000.

     “Series D Incremental Lender” means (a) on the date hereof, the Persons listed
on Schedule I hereto under the caption “Series D Incremental Lenders” and (b) thereafter,
any other Person from time to time holding Series D Incremental Commitments or Series D
Incremental Loans after giving effect to any assignments thereof pursuant to Section 10.04
of the Credit Agreement.

     “Series D Incremental Loan Effective Date” means the date on which the
conditions specified in Article IV are satisfied (or waived by the Required Series D
Incremental Lenders).

     “Series D Incremental Loans” means the Loans made to the Initial Subsidiary
Borrower pursuant to this Agreement which shall constitute a single Series of Incremental
Loans under Section 2.01(c) of the Credit Agreement.

ARTICLE II

SERIES D INCREMENTAL LOANS

          Section 2.01. Series D Incremental Commitments. Subject to the terms and conditions
set forth herein and in the Credit Agreement, each Series D Incremental Lender agrees to make
Series D Incremental Loans to the Initial Subsidiary Borrower, in an aggregate principal amount
equal to such Series D Incremental Lender’s Series D Incremental Commitment. Proceeds of Series D
Incremental Loans shall be used in accordance with Section 6.09 of the Credit Agreement.

          Section 2.02. Termination of Series D Incremental Commitments. Unless previously
terminated, the Series D Incremental Commitments shall terminate after the Borrowing of the Series
D Incremental Loans on the Series D Incremental Loan Effective Date.

Series D Incremental Loan Agreement

 

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          Section 2.03. Repayment of Series D Incremental Loans. The Initial Subsidiary
Borrower hereby unconditionally promises to pay to the Administrative Agent for the account of the
Series D Incremental Lenders the outstanding principal amount of the Series D Incremental Loans on
each Principal Payment Date set forth below in the aggregate principal amount set forth opposite
such Principal Payment Date:

	 	 	 	 	 
	Principal Payment Date	 	Principal Amount
	December 31, 2007
	 	$	87,500	 
	 
	 	 	 	 
	March 31, 2008
	 	$	87,500	 
	June 30, 2008
	 	$	87,500	 
	September 30, 2008
	 	$	87,500	 
	December 31, 2008
	 	$	87,500	 
	 
	 	 	 	 
	March 31, 2009
	 	$	87,500	 
	June 30, 2009
	 	$	87,500	 
	September 30, 2009
	 	$	87,500	 
	December 31, 2009
	 	$	262,500	 
	 
	 	 	 	 
	March 31, 2010
	 	$	262,500	 
	June 30, 2010
	 	$	262,500	 
	September 30, 2010
	 	$	262,500	 
	December 31, 2010
	 	$	262,500	 
	 
	 	 	 	 
	March 31, 2011
	 	$	262,500	 
	June 30, 2011
	 	$	262,500	 
	September 30, 2011
	 	$	262,500	 
	December 31, 2011
	 	$	1,050,000	 
	 
	 	 	 	 
	March 31, 2012
	 	$	1,050,000	 
	June 30, 2012
	 	$	1,050,000	 
	September 30, 2012
	 	$	1,050,000	 

To the extent not previously paid, all Series D Incremental Loans shall be due and payable on the
Term Loan Maturity Date.

          Notwithstanding the foregoing, if on any Test Date the maturity date for any then-outstanding
Senior Subordinated Notes, New Senior Subordinated Notes or New Senior Notes, or of any other
convertible notes or notes offered and sold publicly or under Rule 144A, shall fall within six
months after the Test Date then the Series D Incremental Loans shall be paid in full on the date
that is three months after the Test Date, provided that the foregoing shall not

Series D Incremental Loan Agreement

 

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apply if the Required Series D Incremental Lenders shall elect otherwise at any time prior to
the Test Date.

          Section 2.04. Applicable Rate. The “Applicable Rate” means, in the case of
any Type of Series D Incremental Loans, the respective rates indicated below for Series D
Incremental Loans of such Type based upon the Total Debt Ratio as at the last day of the fiscal
quarter most recently ended as to which the Company has delivered financial statements pursuant to
Section 6.01 of the Credit Agreement:

	 	 	 	 	 	 	 	 	 
	Range
	 	 	 	 
	of
	 	Base Rate Series D	 	Eurodollar Series D
	Total Debt Ratio
	 	Incremental Loans	 	Incremental Loans
	 
	Greater than or equal to 5.00
to 1
	 	 	0.250	%	 	 	1.250	%
	 
	 	 	 	 	 	 	 	 
	Less than 5.00 to 1 and
greater than or equal to 3.00
to 1
	 	 	0.000	%	 	 	1.000	%
	 
	 	 	 	 	 	 	 	 
	Less than 3.00 to 1 and
greater than or equal to 2.50
to 1
	 	 	0.000	%	 	 	0.875	%
	 
	 	 	 	 	 	 	 	 
	Less than 2.50 to 1
	 	 	0.000	%	 	 	0.750	%

          Each change in the “Applicable Rate” based upon any change in the Total Debt Ratio shall
become effective for purposes of the accrual of interest (including in respect of all
then-outstanding Series D Incremental Loans) hereunder on the date three Business Days after the
delivery to the Administrative Agent of the financial statements of the Company for the most
recently ended fiscal quarter pursuant to Section 6.01 of the Credit Agreement, and shall remain
effective for such purpose until three Business Days after the next delivery of such financial
statements to the Administrative Agent hereunder.

          Notwithstanding the foregoing, in the event the Company consummates any Acquisition or
Disposition for aggregate consideration of $75,000,000 or more, the Company shall forthwith deliver
to the Administrative Agent a certificate of a Financial Officer, in form and detail satisfactory
to the Administrative Agent, setting forth a redetermination of the Total Debt Ratio reflecting
such Acquisition or Disposition, and on the date three Business Days after the delivery of such
certificate, the Applicable Rate shall be adjusted to give effect to such redetermination of the
Total Debt Ratio.

          Anything in this Agreement to the contrary notwithstanding, the Applicable Rate shall be the
highest rates provided for above if the certificate of a Financial Officer shall not be delivered
by the times provided in Section 6.01 of the Credit Agreement or within three Business

Series D Incremental Loan Agreement

 

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Days after the occurrence of any Acquisition or Disposition described above (but only, in the
case of this paragraph, with respect to periods prior to the delivery of such certificate).

          Section 2.05. Status of Agreement. Series D Incremental Commitments of each Series D
Incremental Lender constitute Incremental Loan Commitments and each Series D Incremental Lender
constitutes an Incremental Loan Lender, in each case under and for all purposes of the Credit
Agreement. The Series D Incremental Loans constitute a single “Series” of Incremental Loans under
Section 2.01(c) of the Credit Agreement.

ARTICLE III

REPRESENTATION AND WARRANTIES; NO DEFAULTS

          Each Credit Party represents and warrants to the Lenders and the Administrative Agent as to
itself and each of its Subsidiaries that, after giving effect to the provisions hereof, (i) each of
the representations and warranties set forth in the Credit Agreement and the other Loan Documents
is true and correct on and as of the date hereof as if made on and as of the date hereof (or, if
any such representation or warranty is expressly stated to have been made as of a specific date,
such representation or warranty is true and correct as of such specific date) and as if each
reference therein to the Credit Agreement or Loan Documents included reference to this Agreement
and (ii) no Default has occurred and is continuing.

ARTICLE IV

CONDITIONS

          The obligation of the Series D Incremental Lenders to make the Series D Incremental Loans is
subject to the conditions precedent that each of the following conditions shall have been satisfied
(or waived by the Required Series D Incremental Lenders) on or prior to January 17, 2007:

     (a) Counterparts of Agreement. The Administrative Agent (or Special Counsel)
shall have received from each party hereto either (i) a counterpart of this Agreement signed
on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent
(which may include telecopy transmission of a signed signature page of this Agreement) that
such party has signed a counterpart of this Agreement.

     (b) Opinions of Counsel to Initial Subsidiary Borrower and the Credit Parties.
The Administrative Agent (or Special Counsel) shall have received a favorable written
opinion (addressed to the Administrative Agent and the Series D Incremental Lenders and
dated the Series D Incremental Loan Effective Date) of (i) Adsuar Muniz Goyco

Series D Incremental Loan Agreement

 

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Seda & Perez-Ochoa, P.S.C., special Puerto Rico counsel to the Initial Subsidiary
Borrower, substantially in the form of Annex 1, and (ii) Kean, Miller, Hawthorne, D’Armond,
McCowan & Jarman, L.L.P., counsel to the Credit Parties, substantially in the form of Annex
2; and the Initial Subsidiary Borrower and each of the Credit Parties hereby requests such
counsel to deliver such opinions.

     (c) Opinion of Special Counsel. The Administrative Agent shall have received a
favorable written legal opinion (addressed to the Administrative Agent and the Series D
Incremental Lenders and dated the Series D Incremental Loan Effective Date) of Special
Counsel, substantially in the form of Annex 3 (and the Administrative Agent hereby requests
Special Counsel to deliver such opinion).

     (d) Corporate Matters. The Administrative Agent (or Special Counsel) shall
have received such documents and certificates as the Administrative Agent or Special Counsel
may reasonably request relating to the organization, existence and good standing of the
Initial Subsidiary Borrower, the authorization of the Borrowings hereunder and any other
legal matters relating to the Initial Subsidiary Borrower or this Agreement, all in form and
substance reasonably satisfactory to the Administrative Agent.

     (e) Notes. The Administrative Agent (or Special Counsel) shall have received
for each Series D Incremental Lender that shall have requested a promissory note at least
one Business Day prior to the Series D Incremental Loan Effective Date, a duly completed and
executed promissory note for such Lender.

     (f) Fees and Expenses. JPMorgan Securities Inc. shall have received all fees
and other amounts due and payable on or prior to the Series D Incremental Loan Effective
Date, including, to the extent invoiced, reimbursement or payment of all out-of-pocket
expenses required to be reimbursed or paid by the Company hereunder.

     (g) Compliance with Financial Covenants. The Administrative Agent (or Special
Counsel) shall have received from the Financial Officer of the Company, evidence
satisfactory to the Administrative Agent that after giving effect to the Series D
Incremental Loans and the other transactions that are to occur on the Series D Incremental
Loan Effective Date, the Company is in compliance with the applicable provisions of Section
7.09 of the Credit Agreement.

     (h) Additional Conditions. Each of the conditions precedent set forth in
Sections 5.02(b) and 5.03 of the Credit Agreement to the making of Series D Incremental
Loans on the Series D Incremental Loan Effective Date shall have been satisfied, and the
Administrative Agent (or Special Counsel) shall have received a certificate to such effect,
dated the Series D Incremental Loan Effective Date and signed by the President, Vice
President or a Financial Officer of the Company.

Series D Incremental Loan Agreement

 

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ARTICLE V

NON-GUARANTOR RESTRICTED FOREIGN SUBSIDIARY

          The Company hereby confirms that QMC Transit, Inc. and Lamar Advertising of Puerto Rico, Inc.
are Non-Guarantor Restricted Foreign Subsidiaries under the Credit Agreement. The Company hereby
represents and warrants as of the date hereof and as of the Series D Incremental Loan Effective
Date that (i) the aggregate EBITDA attributable to all Non-Guarantor Restricted Foreign
Subsidiaries represents in the aggregate no more than 5% of the aggregate EBITDA of the Company and
its Restricted Subsidiaries, (ii) the free cash flow of such Subsidiaries has been distributed, or
is available for distribution, to the Company at its election at any time and (iii) no
Non-Guarantor Restricted Foreign Subsidiary is a guarantor in respect of any Senior Subordinated
Notes, New Senior Subordinated Notes or New Senior Notes (or in respect of any Refunding
Indebtedness).

ARTICLE VI

MISCELLANEOUS

          SECTION 6.01. Expenses. The Credit Parties jointly and severally agree to pay, or
reimburse JPMorgan Securities Inc. for paying, all reasonable out-of-pocket expenses incurred by
JPMorgan Securities Inc. and its Affiliates, including the reasonable fees, charges and
disbursements of Special Counsel, in connection with the syndication of the Series D Incremental
Loans provided for herein and the preparation of this Agreement.

          SECTION 6.02. Counterparts; Integration; Effectiveness. This Agreement may be
executed in counterparts (and by different parties hereto on different counterparts), each of which
shall constitute an original, but all of which when taken together shall constitute a single
contract. This Agreement shall become effective when this Agreement shall have been executed by
the Administrative Agent and when the Administrative Agent shall have received counterparts hereof
which, when taken together, bear the signatures of each of the other parties hereto, and thereafter
shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. Delivery of an executed counterpart of a signature page of this Agreement
by telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

          SECTION 6.03. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the law of the State of New York.

Series D Incremental Loan Agreement

 

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          SECTION 6.04. Headings. Article and Section headings used herein are for convenience
of reference only, are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

          SECTION 6.05. USA Patriot Act. Each Series D Incremental Lender hereby notifies the
Company that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56
(signed into law October 26, 2001)), such Series D Incremental Lender may be required to obtain,
verify and record information that identifies the Borrowers, which information includes the name
and address of the Borrowers and other information that will allow such Series D Incremental Lender
to identify the Borrowers in accordance with said Act.

Series D Incremental Loan Agreement

 

 

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          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their
respective authorized officers as of the day and year first above written.

	 	 	 	 	 
	 	 	LAMAR TRANSIT ADVERTISING CANADA LTD.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	 	 	Name: Keith A. Istre
	 

	 	 	 	Title: Vice President — Chief Financial Officer

	 	 	 	 	 
	 	 	LAMAR MEDIA CORP.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	 	 	Name: Keith A. Istre
	 

	 	 	 	Title: Executive Vice President — Chief Financial Officer

Series D Incremental Loan Agreement

 

- 10 -

SUBSIDIARY GUARANTORS

	 	 	 	 	 
	 	 	INTERSTATE LOGOS, L.L.C.
	 	 	THE LAMAR COMPANY, L.L.C.
	 	 	LAMAR CENTRAL OUTDOOR, LLC
	 
	 	 	 	 
	 	 	By: Lamar Media Corp.,
	 	 	Their Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

	 	 	 	 	 
	 	 	LAMAR ADVERTISING SOUTHWEST, INC.
	 	 	LAMAR OKLAHOMA HOLDING COMPANY, INC.
	 	 	LAMAR DOA TENNESSEE HOLDINGS, INC.
	 	 	LAMAR OBIE CORPORATION
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/Chief

Financial Officer

Series D Incremental Loan Agreement

 

- 11 -

Interstate Logos, L.L.C. Entities:

	 	 	 	 	 
	 	 	MISSOURI LOGOS, LLC
	 	 	KENTUCKY LOGOS, LLC
	 	 	OKLAHOMA LOGOS, L.L.C.
	 	 	MISSISSIPPI LOGOS, L.LC.
	 	 	DELAWARE LOGOS, L.L.C.
	 	 	NEW JERSEY LOGOS, L.L.C.
	 	 	GEORGIA LOGOS, L.L.C.
	 	 	VIRGINIA LOGOS, LLC
	 	 	MAINE LOGOS, L.L.C.
	 	 	WASHINGTON LOGOS, L.L.C.
	 
	 	 	 	 
	 	 	By: Interstate Logos, L.L.C.
	 	 	Their Managing Member
	 	 	By: Lamar Media Corp.
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Series D Incremental Loan Agreement

 

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Interstate Logos, L.L.C. Entities continued:

	 	 	 	 	 
	 	 	NEBRASKA LOGOS, INC.
	 	 	OHIO LOGOS, INC.
	 	 	UTAH LOGOS, INC.
	 	 	SOUTH CAROLINA LOGOS, INC.
	 	 	MINNESOTA LOGOS, INC.
	 	 	MICHIGAN LOGOS, INC.
	 	 	FLORIDA LOGOS, INC.
	 	 	NEVADA LOGOS, INC.
	 	 	TENNESSEE LOGOS, INC.
	 	 	KANSAS LOGOS, INC.
	 	 	COLORADO LOGOS, INC.
	 	 	NEW MEXICO LOGOS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

	 	 	 	 	 
	 	 	TEXAS LOGOS, L.P.
	 
	 	 	 	 
	 	 	By: Oklahoma Logos, L.L.C.
	 	 	Its: General Partner
	 	 	By: Interstate Logos, L.L.C.
	 	 	Its: Managing Member
	 	 	By: Lamar Media Corp.
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Series D Incremental Loan Agreement

 

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The Lamar Company, L.L.C. Entities:

	 	 	 	 	 
	 	 	LAMAR ADVERTISING OF COLORADO SPRINGS, INC.
	 	 	LAMAR TEXAS GENERAL PARTNER, INC.
	 	 	TLC PROPERTIES, INC.
	 	 	TLC PROPERTIES II, INC.
	 	 	LAMAR PENSACOLA TRANSIT, INC.
	 	 	LAMAR ADVERTISING OF YOUNGSTOWN, INC.
	 	 	LAMAR ADVERTISING OF MICHIGAN, INC.
	 	 	LAMAR ELECTRICAL, INC.
	 	 	AMERICAN SIGNS, INC.
	 	 	LAMAR OCI NORTH CORPORATION
	 	 	LAMAR OCI SOUTH CORPORATION
	 	 	LAMAR ADVERTISING OF KENTUCKY, INC.
	 	 	LAMAR FLORIDA, INC.
	 	 	LAMAR ADVERTISING OF SOUTH DAKOTA, INC.
	 	 	LAMAR OHIO OUTDOOR HOLDING CORP.
	 	 	OUTDOOR MARKETING SYSTEMS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Series D Incremental Loan Agreement

 

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     The Lamar Company, L.L.C. Entities continued:

	 	 	 	 	 
	 	 	LAMAR ADVERTISING OF PENN, LLC
	 	 	LAMAR ADVERTISING OF LOUISIANA, L.L.C.
	 	 	LAMAR TENNESSEE, L.L.C.
	 	 	LC BILLBOARD, L.L.C.
	 	 	LAMAR AIR, L.L.C.
	 
	 	 	 	 
	 	 	By: The Lamar Company, L.L.C.
	 	 	Their Managing Member
	 	 	By: Lamar Media Corp.
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/Chief

Financial Officer

	 	 	 	 	 
	 	 	LAMAR TEXAS LIMITED PARTNERSHIP
	 
	 	 	 	 
	 	 	By: Lamar Texas General Partner, Inc.
	 	 	Its: General Partner
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Series D Incremental Loan Agreement

 

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The Lamar Company, L.L.C. Entities continued:

	 	 	 	 	 
	 	 	TLC PROPERTIES, L.L.C.
	 	 	TLC FARMS, L.L.C.
	 
	 	 	 	 
	 	 	By: TLC Properties, Inc.
	 	 	Their Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

	 	 	 	 	 
	 	 	LAMAR T.T.R., L.L.C.
	 
	 	 	 	 
	 	 	By: Lamar Advertising of Youngstown, Inc.
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

	 	 	 	 	 
	 	 	OUTDOOR MARKETING SYSTEMS, L.L.C.
	 
	 	 	 	 
	 	 	By: Outdoor Marketing Systems, Inc.
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/Chief

Financial Officer

Series D Incremental Loan Agreement

 

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Lamar Central Outdoor, LLC Entities:

	 	 	 	 	 
	 	 	LAMAR ADVANTAGE HOLDING COMPANY
	 	 	PREMERE OUTDOOR, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

	 	 	 	 	 
	 	 	OUTDOOR PROMOTIONS WEST, LLC
	 	 	TRIUMPH OUTDOOR RHODE ISLAND, LLC
	 
	 	 	 	 
	 	 	By: Triumph Outdoor Holdings, LLC
	 	 	Their Managing Member
	 	 	By: Lamar Central Outdoor, LLC
	 	 	Its: Managing Member
	 	 	By: Lamar Media Corp.
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Series D Incremental Loan Agreement

 

- 17 -

Lamar Central Outdoor, LLC Entities continued:

	 	 	 	 	 
	 	 	TRIUMPH OUTDOOR HOLDINGS, LLC
	 	 	LAMAR ADVANTAGE GP COMPANY, LLC
	 	 	LAMAR ADVANTAGE LP COMPANY, LLC
	 
	 	 	 	 
	 	 	By: Lamar Central Outdoor, LLC
	 	 	Their Managing Member
	 	 	By: Lamar Media Corp.
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

	 	 	 	 	 
	 	 	LAMAR ADVANTAGE OUTDOOR COMPANY, L.P.
	 
	 	 	 	 
	 	 	By: Lamar Advantage GP Company, LLC
	 	 	Its: General Partner
	 	 	By: Lamar Central Outdoor, LLC
	 	 	Its: Managing Member
	 	 	By: Lamar Media Corp.
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Series D Incremental Loan Agreement

 

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Lamar Oklahoma Holding Company, Inc. Entities:

	 	 	 	 	 
	 	 	LAMAR BENCHES, INC.
	 	 	LAMAR I-40 WEST, INC.
	 	 	LAMAR ADVERTISING OF OKLAHOMA, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Lamar DOA Tennessee Holdings, Inc. Entities:

	 	 	 	 	 
	 	 	LAMAR DOA TENNESSEE, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Series D Incremental Loan Agreement

 

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Lamar Obie Corporation Entities:

	 	 	 	 	 
	 	 	O.B. WALLS, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/Chief

Financial Officer
	 
	 	 	 	 
	 	 	OBIE BILLBOARD, LLC
	 
	 	 	 	 
	 	 	By: Lamar Obie Corporation
	 	 	Its: Managing Member
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Keith A. Istre
	 

	 	 	 	 
	 

	 	Title:
	 	Executive Vice-President/
	 

	 	 	 	Chief Financial Officer

Series D Incremental Loan Agreement

 

- 20 -

	 	 	 	 	 
	 	ADMINISTRATIVE AGENT

JPMORGAN CHASE BANK, N.A.

as Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Series D Incremental Loan Agreement

 

- 21 -

	 	 	 	 	 
	 	SERIES D INCREMENTAL LENDERS

THE ROYAL BANK OF SCOTLAND PLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	MIZUHO CORPORATE BANK, LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Series D Incremental Loan Agreement

 

- 22 -

          By its signature below, the undersigned hereby consents to the foregoing Series D Incremental
Loan Agreement and confirms that the Series D Incremental Loans shall constitute “Guaranteed
Obligations” under and as defined in the Holdings Guaranty and Pledge Agreement and shall be
entitled to the benefits of the Guarantee and security provided under the Holdings Guaranty and
Pledge Agreement.

	 	 	 	 	 
	 	LAMAR ADVERTISING COMPANY

 	 
	 	By:  	/s/ Keith Istre
 	 
	 	 	Name:  	Keith A. Istre 	 
	 	 	Title:  	Vice President -- Chief Financial Officer 	 
	 

Series D Incremental Loan Agreement

 

 

SCHEDULE I

Series D Incremental Commitments

	 	 	 	 	 
	Name of Series D Incremental Lender	 	Series D Incremental Commitments
	The Royal Bank of Scotland plc
	 	$	3,500,000	 
	Mizuho Corporate Bank, Ltd.
	 	$	3,500,000	 

Schedule I

 

 

ANNEX 1

[Form of Opinion of Special Puerto Rico Counsel to the Initial Subsidiary Borrower]

	 	 	 
	 

	 	January [___], 2007

To the Series D Incremental Lenders

   and the Administrative Agent

   party to the Series D Incremental Loan

   Agreement and Credit Agreement

   referred to below

Ladies and Gentlemen:

     We have acted as special Puerto Rico counsel to Lamar Advertising of Puerto Rico, Inc.,
formerly known as “QMC Media II, Inc.” (the “Initial Subsidiary Borrower”) in connection
with the Series D Incremental Loan Agreement dated as of January 17, 2007 (the “Series D
Incremental Loan Agreement”) between Lamar Media Corp. (the “Company” and, together
with the Initial Subsidiary Borrower party thereto, the “Borrowers”), the Initial
Subsidiary Borrower, the Subsidiary Guarantors named therein, the Series D Incremental Lenders
party thereto (the “Series D Incremental Lenders”) and JPMorgan Chase Bank, N.A. (the
“Administrative Agent”), which Series D Incremental Loan Agreement is being entered into
pursuant to Section 2.01(c) of the Credit Agreement dated as of September 30, 2005 (as amended, the
“Credit Agreement”) between the Borrowers, the other Subsidiary Borrowers party thereto,
the Subsidiary Guarantors party thereto, the lenders party thereto and the Administrative Agent.
Terms defined in the Series D Incremental Loan Agreement and in the Credit Agreement are used
herein as defined therein. This opinion is being delivered pursuant to clause (b)(i) of Article IV
of the Series D Incremental Loan Agreement.

     In rendering the opinions expressed below, we have examined the following agreements,
instruments and other documents:

	 	(a)	the Credit Agreement;
	 
	 	(b)	the Subsidiary Borrower Designation Letter dated as of February 8, 2006
executed between the Company, the Initial Subsidiary Borrower and the Administrative
Agent (the “Subsidiary Borrower Designation Letter”);

 

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Form of Opinion of Special Puerto Rico Counsel to Initial Subsidiary Borrower

	 	(c)	the Series D Incremental Loan Agreement (together with the Credit Agreement and
the Subsidiary Borrower Designation Letter, the “Credit Documents”); and
	 
	 	(d)	such records of the Initial Subsidiary Borrower and such other documents as we
have deemed necessary as a basis for the opinions expressed below.
	 
	 	 	In our examination, we have assumed the genuineness of all signatures, the
authenticity of all documents submitted to us as originals and the conformity with
authentic original documents of all documents submitted to us as copies. When
relevant facts were not independently established, we have relied upon statements or
certificates of governmental officials and upon representations made in or pursuant
to the Credit Documents and certificates and/or opinions of appropriate
representatives of the Initial Subsidiary Borrower.

     In rendering the opinions expressed below, we have assumed, with respect to all of the
documents referred to in this opinion letter, that (except, to the extent set forth in the opinions
expressed below, as to the Initial Subsidiary Borrower):

	 	(i)	such documents have been duly authorized by, have been duly executed and
delivered by, and constitute legal, valid, binding and enforceable obligations of, all
of the parties to such documents;
	 
	 	(ii)	all signatories to such documents have been duly authorized; and
	 
	 	(iii)	all of the parties to such documents are duly organized and validly existing
and have the power and authority (corporate or other) to execute, deliver and perform
such documents.

     Based upon and subject to the foregoing and subject also to the comments and qualifications
set forth below, and having considered such questions of law as we have deemed necessary as a basis
for the opinions expressed below, we are of the opinion that:

	 	1.	The Initial Subsidiary Borrower is a corporation duly organized, validly
existing and in good standing under the laws of the Commonwealth of Puerto Rico
(“Puerto Rico”).
	 
	 	2.	The Initial Subsidiary Borrower has all requisite corporate or other power to
execute and deliver, and to perform its obligations under, the Subsidiary Borrower
Designation Letter and the Series D Incremental Loan Agreement.

 

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Form of Opinion of Special Puerto Rico Counsel to Initial Subsidiary Borrower

	 	3.	 	The execution, delivery and performance by the Initial Subsidiary Borrower of
the Subsidiary Borrower Designation Letter and the Series D Incremental Loan Agreement
have been duly authorized by all necessary corporate or other action on the part of the
Initial Subsidiary Borrower.
	 
	 	4.	 	The Subsidiary Borrower Designation Letter and the Series D Incremental Loan
Agreement have each been duly executed and delivered by the Initial Subsidiary
Borrower.
	 
	 	5.	 	Under Puerto Rico conflict of laws principles, the stated choice of New York
law to govern the Credit Documents will be honored by the courts of Puerto Rico and the
Credit Documents will be construed in accordance with, and will be treated as being
governed by, the law of the State of New York. However, if the Credit Documents were
stated to be governed by and construed in accordance with the law of Puerto Rico, or if
a Puerto Rico court were to apply the law of Puerto Rico to the Credit Documents, each
Credit Document would nevertheless constitute the legal, valid and binding obligation
of the Initial Subsidiary Borrower, enforceable against the Initial Subsidiary Borrower
in accordance with its terms, except as may be limited by bankruptcy, fraudulent
conveyance, insolvency, reorganization, moratorium or other similar laws relating to or
affecting the rights of creditors generally and except as the enforceability of the
Credit Documents is subject to the application of general principles of equity
(regardless of whether considered in a proceeding in equity or at law) and the
corresponding discretion of the court before which the proceedings may be brought,
including, without limitation, (a) the possible unavailability of specific performance,
injunctive relief or any other equitable remedy and (b) concepts of materiality,
reasonableness, good faith and fair dealing.
	 
	 	6.	 	No authorization, approval or consent of, and no filing or registration with,
any governmental or regulatory authority or agency of Puerto Rico is required for the
due execution, delivery or performance by the Initial Subsidiary Borrower of any of the
Credit Documents or for the borrowings by the Initial Subsidiary Borrower under the
Series D Incremental Loan Agreement.
	 
	 	7.	 	The execution, delivery and performance by the Initial Subsidiary Borrower of,
and the consummation by the Initial Subsidiary Borrower of the transactions
contemplated by, the Credit Documents do not and will not (a) violate any provision of
the charter or by-laws of the Initial Subsidiary Borrower, (b) violate any applicable
Puerto Rico law, rule or regulation, (c) violate any order, writ, injunction or decree
of any court or governmental authority or agency or any arbitral award applicable to
the Initial Subsidiary Borrower or any of its Subsidiaries of which we have knowledge
or (d) result in a breach of, constitute a

 

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Form of Opinion of Special Puerto Rico Counsel to Initial Subsidiary Borrower

default under, require any consent under, or result in the acceleration or required
prepayment of any indebtedness pursuant to the terms of, any agreement or instrument
of which we have knowledge and to which the Initial Subsidiary Borrower or any of
its Subsidiaries is a party or by which any of them is bound or to which any of them
is subject, or result in the creation or imposition of any Lien upon any property of
the Initial Subsidiary Borrower pursuant to, the terms of any such agreement or
instrument.

	 	8.	 	We have no knowledge of any legal or arbitral proceedings, or any proceedings
by or before any governmental or regulatory authority or agency, pending or threatened
against or affecting the Initial Subsidiary Borrower or any of its Subsidiaries or any
of their respective properties that, if adversely determined, could have a Material
Adverse Effect.
	 
	 	9.	 	Each of the Credit Agreement and the other Credit Documents to which the
Initial Subsidiary Borrower is a party is in proper legal form under the laws of Puerto
Rico for the enforcement thereof against it, and all formalities required in Puerto
Rico for the validity and enforceability of each Credit Document (including any
necessary registration, recording or filing with any court or other authority in such
jurisdiction) have been accomplished, and no Indemnified Taxes or Other Taxes are
required to be paid to Puerto Rico, or any political subdivision thereof or therein,
and no notarization is required, for the validity and enforceability thereof.

     In basing the opinions and other matters set forth herein on “our knowledge” or facts “known
to us”, the words “our knowledge” and “known to us” signify that, in the course of our
representation of the Initial Subsidiary Borrower in matters with respect to which we have been
engaged by the Initial Subsidiary Borrower, as counsel, and within the scope of such engagement, no
information has come to our attention which would give us actual knowledge or actual notice or
would otherwise lead us to believe that any such opinions, certificates, statements or other
matters are not accurate or that any of the foregoing documents, certificates, reports and
information on which we have relied are not accurate and complete.

     The foregoing opinions are subject to the following comments and qualifications:

     (i) we express no opinion in this letter as to any provision in the Credit Documents:
(a) which relates to the subject matter jurisdiction of any Federal court of the United States of
America, or any Federal appellate court, to adjudicate any controversy related to the Agreements
and (b) which contains a waiver of an inconvenient forum;

     (ii) we also note that any provision in the Credit Documents which provides for
liquidated damages may not be enforceable if such provision is punitive, unreasonable or if actual
damages are not uncertain and can be established without difficulty;

 

- 5 -

Form of Opinion of Special Puerto Rico Counsel to Initial Subsidiary Borrower

     (iii) we express no opinion as to the validity or enforceability of any provision in the
Credit Documents waiving, expressly or by implication, stated rights, defenses or rights granted by
laws, where such waivers are or may be deemed to be against public policy or prohibited by law;

     (iv) we express no opinion as to the effect on the opinions expressed herein of the
compliance or non-compliance of any party (other than the Initial Subsidiary Borrower) to the
Credit Documents with any state, Puerto Rico, federal or other laws or regulations applicable to
it;

     (v) we express no opinion as to the validity or enforceability of any rights to
indemnification provided for in the Credit Documents which may be limited by (a) laws rendering
indemnification unenforceable or contrary to federal or state securities laws and the public policy
underlying such laws, and (b) laws limiting the enforceability of provisions exculpating or
exempting a party from liability, or requiring indemnification of a party, for its own action or
inaction, to the extent such action or inaction involves gross negligence, recklessness or willful
or unlawful conduct;

     (vi) we express no opinion as to the validity or enforceability of any power of attorney
or attorney-in-fact provisions contained in any of the Credit Documents;

     (vii) we express no opinion as to the validity or enforceability of any provision in the
Credit Documents that provides that the terms of the Credit Documents may not be waived or modified
except in writing;

     (viii) we express no opinion as to any provision of the Credit Documents insofar as the
same authorizes any Person to set-off and apply to or for its account any deposit or property of
any other Person at any time held thereby, on any indebtedness at any time owing by any Person
thereto, to the extent that (x) the funds to be applied are not then due and payable, (y) the
respective Persons have been opportunely notified of an attachment or claim by a third party
against the funds to be applied, or (z) any such right to set-off is exercised with respect to
escrow deposits, payroll accounts or other special deposit accounts which, by the express terms on
which the same are created, are made subject to the legal rights of a third party;

     (ix) we express no opinion as to the validity or enforceability of the waivers by any
Person in the Credit Documents of the right to a trial by jury.

     The foregoing opinions are limited to matters involving the laws of Puerto Rico, and we do not
express any opinion as to the law of any other jurisdiction. The opinions rendered herein are given
on the date hereof and such opinions are rendered only with respect to facts existing on the date
hereof and laws, rules and regulations currently in effect. We assume no obligation to

 

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Form of Opinion of Special Puerto Rico Counsel to Initial Subsidiary Borrower

update or supplement our opinion to reflect any facts or circumstances which may hereafter
come to our attention or changes in law which may hereafter occur.

     This opinion letter is provided to you by us as special Puerto Rico counsel to the Initial
Subsidiary Borrower pursuant to clause (b)(i) of Article IV of the Series D Incremental Loan
Agreement and may not be relied upon by any other person or for any purpose other than in
connection with the transactions contemplated by the Credit Documents without our prior written
consent in each instance.

	 	 	 
	 

	 	Very truly yours,

 

 

ANNEX 2

[Form of Opinion of Counsel to the Credit Parties]

	 	 	 
	 

	 	January [___], 2007

To the Series D Incremental Lenders

   and the Administrative Agent

   party to the Series D Incremental Loan

   Agreement and Credit Agreement

   referred to below

Ladies and Gentlemen:

          We have acted as counsel to Lamar Advertising of Puerto Rico, Inc., formerly known as “QMC
Media II, Inc.” (the “Initial Subsidiary Borrower”), Lamar Advertising Company
(“Holdings”), Lamar Media Corp. (herein the “Company”) and the Subsidiary
Guarantors, in connection with the Series D Incremental Loan Agreement dated as of January 17, 2007
(the “Series D Incremental Loan Agreement”) between Lamar Media Corp. (the
“Company” and, together with the Initial Subsidiary Borrower, the “Borrowers”), the
Subsidiary Guarantors named therein, the Series D Incremental Lenders party thereto (the
“Series D Incremental Lenders”) and JPMorgan Chase Bank, N.A. (the “Administrative
Agent”), which Series D Incremental Loan Agreement is being entered into pursuant to Section
2.01(c) of the Credit Agreement dated as of September 30, 2005 (as amended, the “Credit
Agreement”) between the Borrowers, the other Subsidiary Borrowers party thereto, the Subsidiary
Guarantors party thereto, the lenders party thereto and the Administrative Agent. Terms defined in
the Series D Incremental Loan Agreement and in the Credit Agreement are used herein as defined
therein. This opinion is being delivered pursuant to Article IV(b)(ii) of the Series D Incremental
Loan Agreement.

          In rendering the opinions expressed below, we have examined the following agreements,
instruments and other documents:

	 	(a)	the Credit Agreement;
	 
	 	(b)	the Subsidiary Borrower Designation Letter dated as of February
8, 2006 executed between the Company, the Initial Subsidiary Borrower and the
Administrative Agent (the “Subsidiary Borrower Designation Letter”);

 

- 2 -

Form of Opinion of Counsel to Credit Parties

	 	(c)	 	the Series D Incremental Loan Agreement (together with the
Credit Agreement and the Subsidiary Borrower Designation Letter, the
“Credit Documents”); and
	 
	 	(d)	 	such records of the Credit Parties and such other documents as
we have deemed necessary as a basis for the opinions expressed below, including
information listed on Schedule A regarding the merging and/or consolidation of
certain subsidiaries.

          In our examination, we have assumed the genuineness of all signatures, the authenticity of all
documents submitted to us as originals and the conformity with authentic original documents of all
documents submitted to us as copies. When relevant facts were not independently established, we
have relied upon statements or certificates of governmental officials and upon representations made
in or pursuant to the Credit Documents and certificates and/or opinions of appropriate
representatives of the Credit Parties.

          In rendering the opinions expressed below, we have assumed, with respect to all of the
documents referred to in this opinion letter, that (except, to the extent set forth in the opinions
expressed below, as to the Credit Parties):

	 	(i)	 	such documents have been duly authorized by, have been duly executed
and delivered by, and constitute legal, valid, binding and enforceable obligations
of, all of the parties to such documents;
	 
	 	(ii)	 	all signatories to such documents have been duly authorized; and
	 
	 	(iii)	 	all of the parties to such documents are duly organized and validly
existing and have the power and authority (corporate or other) to execute, deliver
and perform such documents.

          References to “our knowledge” or equivalent words means the actual knowledge of the lawyers in
this firm responsible for preparing this opinion after such inquiry as they deemed appropriate,
including inquiry of such other lawyers in the firm and review of such files of the firm as they
have identified as being reasonably likely to have or contain information not otherwise known to
them needed to support the opinions set forth below. References to “after due inquiry” or
equivalent words means after inquiry of the Chief Financial Officer and General Counsel of
Holdings, and of lawyers in the firm reasonably likely to have knowledge of the matter to which
such reference relates.

 

- 3 -

Form of Opinion of Counsel to Credit Parties

          Based upon and subject to the foregoing and subject also to the comments and qualifications
set forth below, and having considered such questions of law as we have deemed necessary as a basis
for the opinions expressed below, we are of the opinion that:

     1. Holdings is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware. The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware. Each
Subsidiary of the Company that is a Credit Party is a corporation, partnership or other
entity duly organized, validly existing and, to our knowledge, in good standing under
the laws of the state indicated opposite its name in Schedule 4.14 to the Credit
Agreement.

     2. Each Credit Party has all requisite corporate or other power to execute and deliver,
and to perform its obligations under, the Credit Documents to which it is a party.

     3. The execution, delivery and performance by each Credit Party of each Credit Document
to which it is a party have been duly authorized by all necessary corporate or other action
on the part of such Credit Party.

     4. Each Credit Document has been duly executed and delivered by each Credit Party party
thereto.

     5. Under Louisiana conflict of laws principles, the stated choice of New York law to
govern the Credit Documents will be honored by the courts of the State of Louisiana and the
Credit Documents will be construed in accordance with, and will be treated as being governed
by, the law of the State of New York, except to the extent the result obtained from applying
New York law would be contrary to the public policy of the State of Louisiana, provided,
however, that we have no knowledge of any Louisiana public policy interest which could
reasonably be expected to result in the application of Louisiana law to the Credit
Documents. However, if the Credit Documents were stated to be governed by and construed in
accordance with the law of the State of Louisiana, or if a Louisiana court were to apply the
law of the State of Louisiana to the Credit Documents, each Credit Document would
nevertheless constitute the legal, valid and binding obligation of each Credit Party party
thereto, enforceable against such Credit Party in accordance with its terms, except as may
be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium or
other similar laws relating to or affecting the rights of creditors generally and except as
the enforceability of the Credit Documents is subject to the application of general
principles of equity (regardless of whether considered in a proceeding in equity or at law)
and the corresponding discretion of the court before which the proceedings may be brought,
including, without limitation, (a) the possible unavailability of specific performance,
injunctive relief or any other

 

- 4 -

Form of Opinion of Counsel to Credit Parties

equitable remedy and (b) concepts of materiality, reasonableness, good faith and fair
dealing.

     6. No authorization, approval or consent of, and no filing or registration with, any
governmental or regulatory authority or agency of the United States of America or the State
of Louisiana is required on the part of any Credit Party for the execution, delivery or
performance by any Credit Party of any of the Credit Documents or for the borrowings by the
Initial Subsidiary Borrower under the Credit Agreement.

     7. The execution, delivery and performance by each Credit Party of, and the
consummation by each Credit Party of the transactions contemplated by, the Credit Documents
to which such Credit Party is a party do not and will not (a) violate any provision of the
charter or by-laws of any Credit Party, (b) violate any applicable Louisiana or federal law,
rule or regulation, (c) violate any order, writ, injunction or decree of any court or
governmental authority or agency or any arbitral award applicable to the Credit Parties or
any of their respective Subsidiaries of which we have knowledge (after due inquiry) or (d)
based on an opinion of the General Counsel of the Company, result in a breach of, constitute
a default under, require any consent under, or result in the acceleration or required
prepayment of any indebtedness pursuant to the terms of, any agreement or instrument of
which we have knowledge (after due inquiry) and to which the Credit Parties or any of their
respective Subsidiaries is a party or by which any of them is bound or to which any of them
is subject, or result in the creation or imposition of any Lien upon any property of any
Credit Party pursuant to, the terms of any such agreement or instrument.

     8. Except as set forth in Schedule 4.06 to the Credit Agreement, we have no knowledge
(after due inquiry) of any legal or arbitral proceedings, or any proceedings by or before
any governmental or regulatory authority or agency, pending or threatened against or
affecting the Credit Parties or any of their respective Subsidiaries or any of their
respective properties that, if adversely determined, could have a Material Adverse Effect.

     9. The obligations of the Credit Parties under the Credit Documents constitute Senior
Indebtedness (as defined in the Senior Subordinated Notes Indentures) for all purposes of
the Senior Subordinated Notes Indentures.

     10. The Credit Agreement and the Series D Incremental Loan Agreement will constitute
the “Senior Credit Facility” under and for all purposes of each of the Senior Subordinated
Notes Indentures.

 

- 5 -

Form of Opinion of Counsel to Credit Parties

          The foregoing opinions are subject to the following comments and qualifications:

     (A) The enforceability of Section 10.03 of the Credit Agreement (and any similar
provisions in any of the other Credit Documents) may be limited by (i) laws rendering
unenforceable indemnification contrary to Federal or state securities laws and the public
policy underlying such laws and (ii) laws limiting the enforceability of provisions
exculpating or exempting a party, or requiring indemnification of a party for, liability for
its own action or inaction, to the extent the action or inaction involves gross negligence,
recklessness, willful misconduct or unlawful conduct.

     (B) The enforceability of provisions in the Credit Documents to the effect that terms
may not be waived or modified except in writing may be limited under certain circumstances.

     (C) We express no opinion as to (i) the effect of the laws of any jurisdiction in which
any Lender is located (other than the State of Louisiana) that limits the interest, fees or
other charges such Lender may impose for the loan or use of money or other credit, (ii) the
last sentence of Section 2.16(d) of the Credit Agreement, (iii) Section 3.06 or 3.09 of the
Credit Agreement (and any similar provisions in any of the other Credit Documents) and (iv)
the first sentence of Section 10.09(b) of the Credit Agreement (and any similar provisions
in any of the other Credit Documents), insofar as such sentence relates to the subject
matter jurisdiction of the United States District Court for the Southern District of New
York to adjudicate any controversy related to the Credit Documents.

     (D) We express no opinion as to the applicability to the obligations of any Subsidiary
Guarantor (or the enforceability of such obligations) of Section 548 of the Bankruptcy Code
or any other provision of law relating to fraudulent conveyances, transfers or obligations
or of the provisions of the law of the jurisdiction of incorporation of any Subsidiary
Guarantor restricting dividends, loans or other distributions by a corporation for the
benefit of its stockholders.

     (E) The opinions expressed herein as of the date hereof, and except as may otherwise be
provided herein, we have no obligation to advise you as to any change in the matters,
factual, legal or otherwise, set forth herein after the date of this letter. Without
limitation of the foregoing, our opinions in paragraphs 9 and 10 are limited to the Credit
Documents and Senior Subordinated Notes Indentures as in effect as of the date hereof.

          Partners or Associates of this Firm are members of the Bar of the State of Louisiana and we do
not hold ourselves out as being conversant with the laws of any jurisdiction other than those of
the United States of America and the State of Louisiana, and we express no

 

- 6 -

Form of Opinion of Counsel to Credit Parties

opinion as to the laws of any jurisdiction other than those of the United States of America, the
State of Louisiana and the General Corporation Law of the State of Delaware.

          At the request of our clients, this opinion letter is, pursuant to Section (b)(ii) of Article
IV of the Series D Incremental Loan Agreement, provided to you by us in our capacity as counsel to
the Credit Parties and may not be relied upon by any Person for any purpose other than in
connection with the transactions contemplated by the Credit Agreement without, in each instance,
our prior written consent.

	 	 	 
	 

	 	Very truly yours,

 

- 7 -

Form of Opinion of Counsel to Credit Parties

SCHEDULE A

	 	 	 
	Subsidiary Name	 	Merged/Consolidated into:
	Transit America Las Vegas, L.L.C.

	 	merged into Triumph Outdoor Holdings, LLC
	Lamar Advertising of New Orleans, LLC

	 	merged into Triumph Outdoor Holdings, LLC
	Trans West Outdoor Advertising, Inc.

	 	merged into Lamar California Acquisition
	 

	 	Corporation
	Select Media, Inc.

	 	merged into Lamar Obie Corporation
	Stokely Ad Agency, L.L.C.

	 	merged into Lamar Central Outdoor, LLC
	Lamar California Acquisition Corporation

	 	merged into Lamar Central Outdoor, LLC
	ADvantage Advertising, LLC

	 	merged into The Lamar Company, LLC
	Lamar Advan, Inc.

	 	merged into Lamar Advertising of Penn, LLC
	Ham Development Corporation

	 	merged into Lamar Central Outdoor, LLC
	10 Outdoor Advertising, Inc.

	 	merged into Lamar Central Outdoor, LLC
	Daum Advertising Company, Inc.

	 	merged into Lamar Advantage Outdoor
	 

	 	Company, L.P.

 

 

ANNEX 3

[Form of Opinion of Special Counsel to JPMCB]

	 	 	 
	 

	 	January [___], 2007

To the Series D Incremental Lenders

   and the Administrative Agent

   party to the Series D Incremental Loan

   Agreement and Credit Agreement

   referred to below

Ladies and Gentlemen:

          We have acted as special New York counsel to JPMorgan Chase Bank, N.A., as Administrative
Agent, under the Series D Incremental Loan Agreement dated as of January 17, 2007 (the “Series
D Incremental Loan Agreement”) between Lamar Advertising of Puerto Rico, Inc., formerly known
as “QMC Media II, Inc.” (the “Initial Subsidiary Borrower”), Lamar Media Corp. (the
“Company”), the Subsidiary Guarantors named therein (together with the Company, Lamar
Advertising Company, the Initial Subsidiary Borrower and Lamar Transit Advertising Canada Ltd., the
“Credit Parties”), the Series D Incremental Lenders party thereto (the “Series D
Incremental Lenders”) and JPMorgan Chase Bank, N.A., as Administrative Agent (the
“Administrative Agent”), which Series D Incremental Loan Agreement is being entered into
pursuant to Section 2.01(c) of the Credit Agreement dated as of September 30, 2005 (as amended by
Amendment No. 1 thereto dated as of October 5, 2006 and Amendment No. 2 thereto dated as of
December 11, 2006, the “Credit Agreement”) between the Company, the Subsidiary Borrowers
party thereto, the Subsidiary Guarantors party thereto, the lenders party thereto and the
Administrative Agent. Terms defined in the Series D Incremental Loan Agreement and in the Credit
Agreement are used herein as defined therein. This opinion is being delivered pursuant to clause
(c) of Article IV of the Series D Incremental Loan Agreement.

          In rendering the opinions expressed below, we have examined the following agreements,
instruments and other documents:

	 	(a)	 	the Credit Agreement;
	 
	 	(b)	 	the Subsidiary Borrower Designation Letter dated as of February
8, 2006 executed between the Company, the Initial Subsidiary Borrower and the
Administrative Agent (the “Subsidiary Borrower Designation Letter”);
and

 

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Form of Opinion of Special Counsel to JPMCB

	 	(c)	 	the Series D Incremental Loan Agreement (together with the
Credit Agreement and the Subsidiary Borrower Designation Letter, the
“Credit Documents”).

          In our examination, we have assumed the authenticity of all documents submitted to us as
originals, the conformity with authentic original documents of all documents submitted to us as
copies and, in the case of documents executed prior to the date of this opinion letter, that there
has been no amendment, waiver or other modification (whether in writing, orally or by course of
conduct, course of dealing, course of performance or otherwise) except as expressly referred to
herein. When relevant facts were not independently established, we have relied upon
representations made in or pursuant to the Credit Documents.

          In rendering the opinions expressed below, we have assumed, with respect to all of the
documents referred to in this opinion letter, that:

	 	(i)	 	such documents have been duly authorized by, have been duly executed
and delivered by, and (except to the extent set forth in the opinions below as to
the Credit Parties) constitute legal, valid, binding and enforceable obligations
of, all of the parties to such documents;
	 
	 	(ii)	 	all signatories to such documents have been duly authorized;
	 
	 	(iii)	 	all of the parties to such documents are duly organized and validly
existing and have the power and authority (corporate or other) to execute, deliver
and perform such documents; and
	 
	 	(iv)	 	all authorizations, approvals or consents of (including without
limitation all foreign exchange control approvals), and all filings or
registrations with, any governmental or regulatory authority or agency of Puerto
Rico required for the making and performance by the Credit Parties of the Credit
Documents have been obtained or made and are in effect.

          Based upon and subject to the foregoing and subject also to the comments and qualifications
set forth below, and having considered such questions of law as we have deemed necessary as a basis
for the opinions expressed below, we are of the opinion that each of the Credit Documents
constitutes the legal, valid and binding obligation of each Credit Party party thereto, enforceable
against such Credit Party in accordance with its terms, except as may be limited by bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance or transfer or other similar laws
relating to or affecting the rights of creditors generally, and to the possible judicial
application of foreign laws or governmental action affecting the rights of creditors generally, and
except as the enforceability of the Credit Documents is subject to the application of general
principles of equity (regardless of whether considered in a proceeding in equity or at law),
including, without limitation, (a) the possible unavailability of specific performance, injunctive
relief or any other equitable remedy and (b) concepts of materiality, reasonableness, good faith
and fair dealing.

 

- 3 -

Form of Opinion of Special Counsel 

          The foregoing opinions are subject to the following comments and qualifications:

     (A) The enforceability of Section 10.03 of the Credit Agreement (and any similar
provisions in any of the other Credit Documents) may be limited by laws limiting the
enforceability of provisions exculpating or exempting a party, or requiring indemnification
of a party for, liability for its own action or inaction, to the extent the action or
inaction involves gross negligence, recklessness, willful misconduct or unlawful conduct.

     (B) Clause (iii) of the second sentence of Section 3.02 of the Credit Agreement (and
any similar provisions in any of the other Credit Documents) may not be enforceable to the
extent that the Guaranteed Obligations (as defined in the Credit Agreement) are materially
modified.

     (C) The enforceability of provisions in the Credit Documents to the effect that terms
may not be waived or modified except in writing may be limited under certain circumstances.

     (D) We express no opinion as to (i) the effect of the laws of any jurisdiction in which
any Lender is located (other than the State of New York) that limit the interest, fees or
other charges such Lender may impose for the loan or use of money or other credit, (ii) the
last sentence of Section 2.16(d) of the Credit Agreement, (iii) Section 3.06 or 3.09 of the
Credit Agreement (and any similar provisions in any of the other Credit Documents), (iv) the
first sentence of Section 10.09(b) of the Credit Agreement (and any similar provisions in
any of the other Credit Documents), insofar as such sentence relates to the subject-matter
jurisdiction of the United States District Court for the Southern District of New York to
adjudicate any controversy related to the Credit Documents and (v) the waiver of
inconvenient forum set forth in the last sentence of Section 10.09(c) of the Credit
Agreement, and any similar provision in any of the other Credit Documents, with respect to
proceedings in the United States District Court for the Southern District of New York.

     (E) We express no opinion as to the applicability to the obligations of any Subsidiary
Guarantor (or the enforceability of such obligations) of Section 548 of the United States
Bankruptcy Code, Article 10 of the New York Debtor and Creditor Law or any other provision
of law relating to fraudulent conveyances, transfers or obligations or of the provisions of
the law of the jurisdiction of incorporation of any Subsidiary Guarantor restricting
dividends, loans or other distributions by a corporation for the benefit of its
stockholders.

          The foregoing opinions are limited to matters involving the Federal laws of the United States
of America and the law of the State of New York, and we do not express any opinion as to the laws
of any other jurisdiction.

          At the request of our clients, this opinion is rendered solely to you in connection with the
above matter. This opinion may not be relied upon by you for any other purpose or

 

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Form of Opinion of Special Counsel 

relied upon by any other Person (other than your successors and assigns as Lenders and Persons that
acquire participations in your extensions of credit under the Credit Agreement) without our prior
written consent.

	 	 	 
	 

	 	Very truly yours,

RJW/RMGexv10w1

 

Exhibit 10.1

****Certain confidential information contained in this document, marked by brackets,
has been omitted and filed with the Securities and Exchange Commission pursuant to Rule 24b-2
of the Securities Exchange Act of 1934, as amended.

ASSET PURCHASE AGREEMENT

     This Asset Purchase Agreement (the “Agreement”) is entered into as of February 15,
2007, by and between Silicon Integrated Systems Corporation, a California corporation
(“Buyer”) ESS Technology, Inc., a California corporation (“US Seller”) and ESS
Technology International, Inc., a Cayman corporation (“Cayman Seller”, and collectively
with US Seller, “Seller”).

AGREEMENT

     In consideration of the mutual agreements, representations, warranties and covenants set forth
below, Buyer and Seller agree as follows:

1. Definitions.

     1.1 Definitions. As used in this Agreement, the following terms shall have the
following meanings:

          (a) “Affiliate” means with respect to any Person, a Person directly or indirectly
controlling or controlled by or under common control with such Person. For these purposes,
“control” shall refer to (i) the possession, directly or indirectly, of the power to direct
the management or policies of the subject entity, whether through the ownership of voting
securities, by contract, or otherwise, or (ii) the ownership, directly or indirectly, of at least
fifty percent (50%) of the voting securities or other ownership interest of the subject entity, or
in the event such entity resides in a country where such level of ownership is not permitted, the
maximum percentage ownership therein allowed.

          (b) “Acquisition Proposal” means, other than the transactions contemplated by this
Agreement and the SiS-Cayman Agreement, any offer, proposal or inquiry relating to, or any Third
Party indication of interest in (i) any acquisition, purchase or transfer, direct or indirect, of
the Assets to be transferred and sold hereunder or of the intangible assets of Seller or of the
Transferred Employees to be transferred pursuant to the terms hereof, and (ii) any transaction,
including without limitation, a merger, consolidation, share exchange, business combination, sale
of substantially all assets of Seller, or tender offer, the consummation of which could reasonably
be expected to impede, interfere with, prevent or materially delay the transactions contemplated by
this Agreement or the SiS-Cayman Agreement or dilute materially the benefits to Buyer or SiS-Cayman
of the transactions contemplated hereby or by the SiS-Cayman Agreement.

          (c) “Business” means the business of designing, developing, modifying and enhancing,
manufacturing, having manufactured, marketing and distributing Products that are designed to: (i)
support all current or future video and/or audio formats for play-back from optical or other media
(except for applications in the Restricted Field of Use); or (ii) principally control blue-laser
based optical drives, but which may also support red-laser based optical drives

 

 

as a matter of
backward compatibility, and all derivatives thereof, as well as Products designed to support any
successor formats or standards, and the provision of services relating thereto.

          (d) “Buyer Products” means any Products designed, developed, modified, enhanced,
manufactured, marketed and distributed by or on behalf of Buyer or an Affiliate that are primarily
used in the Business, including all successor products and new versions thereof for use in the
Business, and includes the provision of services related to such Products.

          (e) “Closing” means the consummation of the transactions contemplated hereby.

          (f) “Closing Date” means the date of the Closing.

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

          (h) “Confidential Information” means nonpublic information that a party to this
Agreement (“Disclosing Party”) designates in writing as being confidential to the party
that receives such information (“Receiving Party”). “Confidential Information”
includes, without limitation, information in tangible or intangible form relating to and/or
including released or unreleased Disclosing Party software or hardware products, the marketing or
promotion of any Disclosing Party product, Disclosing Party’s business policies or practices, and
information received from others that Disclosing Party is obligated to treat as confidential.
Confidential Information which is disclosed in tangible form shall be marked as “confidential” or
words of similar import. Confidential Information which is disclosed verbally shall be designated
as “confidential” by the Disclosing Party when disclosed. Notwithstanding the foregoing, the
failure by the Disclosing Party to designate any tangible or intangible information as Confidential
Information shall not give the Receiving Party the right to treat such information as free from the
restrictions imposed by Section 6.17 of this Agreement if the circumstances would lead a reasonable
person to believe that such information is Confidential Information. Except as otherwise indicated
in this Agreement, the term “Disclosing Party” also includes all Affiliates of the
Disclosing Party and, except as otherwise indicated, the term “Receiving Party” also
includes all Affiliates of the Receiving Party. Confidential Information shall not include any
information, however designated, that: (i) is or subsequently becomes publicly available without
Receiving Party’s breach of any obligation owed to Disclosing Party; (ii) became known to Receiving
Party prior to Disclosing Party’s disclosure of such information to Receiving Party pursuant to the
terms of this Agreement without an obligation of confidentiality prior to the Disclosing Party’s
disclosure; (iii) became known to Receiving Party from a source other than Disclosing Party other
than by the breach of an obligation of confidentiality owed to Disclosing Party; or (iv) is
independently developed by Receiving Party.

          (i) “GAAP” means generally accepted accounting principles of the United States as set
forth by the Financial Accounting Standards Board.

          (j) “Governmental Authorizations” means the permits, authorizations, consents or
approvals of any Governmental Entity that are a condition to the lawful consummation of the
transactions contemplated hereby listed on Schedule 1.1(i) to this Agreement.

- 2 -

 

          (k) “Governmental Entity” means any court, or any federal, state, municipal or other
governmental authority, department, commission, board, agency or other instrumentality (domestic or
foreign).

          (l) “Knowledge” means that which is known by a Person and that of which a Person
should have constructive knowledge after conducting a reasonable examination of all matters
relating thereto.

          (m) “Lien” means any mortgage, pledge, lien, security interest, option, covenant,
condition, restriction, encumbrance, charge or other third-party claim of any kind.

          (n) “Material Adverse Effect” with respect to a Person means any event, change or
effect that is materially adverse to the condition (financial or otherwise), properties, assets,
liabilities, business, operations, results of operations, or prospects of such Person and its
Affiliates, taken as a whole, or an effect which prevents or materially delays a Person’s ability
to consummate the transactions contemplated by this Agreement.

          (o) “Person” means an individual, corporation, partnership, association, trust,
government or political subdivision or agent or instrumentality thereof, or other entity or
organization.

          (p) “Products” means semiconductor products, components, or boards or assemblies
incorporating such semiconductor products.

          (q) “Purchased Assets” has the meaning set forth in section 2.1.

          (r) “Restricted Field of Use” means the business of designing, developing, modifying
and enhancing, manufacturing, having manufactured and distributing standalone Products used for the
sole purpose of supporting current DVD optical disc technologies that utilize red laser technology
to read and write data, including desktop/portable DVD players, mini-combo DVD players, DVD home
theater systems and automotive DVD players which utilize such technology.

          (s) “SiS-Cayman Agreement” means that certain Asset Purchase Agreement of even date
herewith between Seller and Silicon Holding Limited, a company organized under the laws of the
Cayman Islands and an Affiliate of Buyer (“SiS-Cayman”), pursuant to which SiS-Cayman is
acquiring substantially all the intangible assets of the Business.

          (t) “Taxes” means all taxes, however denominated, including any interest, penalties or
other additions to tax that may become payable in respect thereof, (i) imposed by any federal,
territorial, state, local or foreign government or any agency or political subdivision of any such
government, for which Buyer could become liable as successor to or transferee of the Business or
the Purchased Assets or which could become a charge against or lien on any of the Purchased Assets,
which taxes shall include, without limiting the generality of the foregoing, all sales and use
taxes, ad valorem taxes, excise taxes, business license taxes, occupation taxes, real and personal
property taxes, stamp taxes, environmental taxes, real property gains taxes, transfer
taxes, payroll and employee withholding taxes, unemployment insurance contributions,

- 3 -

 

social
security taxes, and other governmental charges, and other obligations of the same or of a similar
nature to any of the foregoing, which are required to be paid, withheld or collected, or (ii) any
liability for amounts referred to in (i) as a result of any obligations to indemnify another
person.

          (u) “Transferred Employee” means any employee who was employed by Seller in the
Business as of December 31, 2006, who received and accepted an offer of employment by Buyer or an
Affiliate of Buyer, or a designated co-employer of any of the foregoing (each, a “Buyer
Party”), to commence work for such Buyer Party effective as of 12:01 a.m. on January 1, 2007
and who transferred employment to Buyer Party pursuant to such offer. Transferred Employees shall
not include any person on a disability leave of more than twenty-six (26) weeks..

          (v) “Transition Services Agreement” means each agreement between Seller and Buyer (or
an Affiliate of Buyer) dated as of January 1, 2007, pursuant to which Seller has agreed to provide
Buyer (or its indicated Affiliate) with certain transition services in accordance with the terms
thereof.

2. Sale and Purchase

     2.1 Transfer of Purchased Assets. Subject to the terms and conditions of this
Agreement, Seller shall sell, assign, grant, transfer, and deliver (or cause to be sold, assigned,
granted, transferred and delivered) to Buyer, or to any Affiliate of Buyer designated by Buyer, and
Buyer shall purchase and accept from Seller as of the Closing Date, free and clear of all Liens,
all of the Seller’s rights, title and interest in and to all of the following assets, properties
and business of Seller as the same shall exist on the Closing Date (the “Purchased
Assets”):

          (a) all tangible personal property and leases of and other interests in tangible personal
property exclusively related to the Business, including, without limitation, the items listed on
Schedule 2.1(a);

          (b) all rights under contracts, agreements, leases and other interests in real and personal
property, licenses, commitments, sales and purchase orders and other instruments, set forth on
Schedule 2.1(b) (collectively the “Contracts”);

          (c) all of Seller’s rights, claims, credits, causes of action or rights of set-off against
third parties relating to the Purchased Assets, including, without limitation, unliquidated rights
under warranties;

          (d) all permits, authorizations, consents and approvals of any Governmental Entity exclusively
related to the Business, including without limitation, the items listed on Schedule 2.1(d)
(the “Permits”);

          (e) all personnel and employment records relating to Transferred Employees; and

- 4 -

 

          (f) all goodwill associated with the Business or the Purchased Assets, together with the right
to represent to third parties that Buyer, together with its Affiliates, is the successor to the
Business.

     2.2 Excluded Assets. Buyer agrees that the assets of Seller set forth on Schedule
2.2 which are not expressly covered by Section 2.1 shall be excluded from the Purchased Assets
(the “Excluded Assets”).

     2.3 Assumed Liabilities. Effective as of the Closing, Buyer (or its designated
Affiliate(s), as the case may be) in accordance with Section 3.2 shall, without any further
responsibility or liability of or recourse to Seller or any of Seller’s Affiliates, subsidiaries,
stockholders, officers, directors, employees, agents, successors or assigns, absolutely and
irrevocably assume, pay, perform and be liable and responsible for any and all of the following
liabilities (collectively, the “Assumed Liabilities”):

          (a) all liabilities and obligations arising after the Closing Date with respect to the
Purchased Assets, provided however, that all liabilities arising prior to the Closing Date with
respect to the Purchased Assets and all unperformed or unmatured obligations and covenants of
Seller incurred by Seller prior to the Closing Date with respect to the Purchased Assets shall
remain the sole responsibility of Seller; and provided further that any claim arising after the
Closing Date that would not have occurred but for the inaccuracy of a representation or warranty of
Seller hereunder shall also remain the sole responsibility of Seller.

     2.4 Excluded Liabilities. Except for the Assumed Liabilities, Buyer shall not assume
and shall not be liable for, and Seller and its Affiliates shall retain and remain solely liable
for and obligated to discharge, all of the debts, contracts, agreements, commitments, obligations
and other liabilities of any nature whatsoever of Seller and its Affiliates, whether known or
unknown, accrued or not accrued, fixed or contingent, including without limitation, the following
(collectively, with the foregoing, the “Excluded Liabilities”):

          (a) Any liability for breaches by Seller or any of its Affiliates on or prior to the Closing
Date of any contract or any other instrument, contract or purchase order or any liability for
payments or amounts due under any Contract or any other instrument, contract or purchase order on
or prior to the Closing Date;

          (b) Any liability or obligation for Taxes attributable to or imposed upon Seller or any of its
Affiliates, or attributable to or imposed upon the Purchased Assets for any period (or portion
thereof) up to but excluding the Closing Date, other than transfer taxes, sales, value-added or
other similar taxes on the Purchased Assets directly attributable to or arising from the
transactions contemplated by this Agreement (for purposes of determining the amount of Taxes
attributable to the period up to the Closing Date, the amount of any Taxes based on or measured by
income or receipts shall be determined based on a closing of the books as of the close of business
on the day before the Closing Date, and the amount of other Taxes shall be deemed to be the amount
of such Tax for the entire taxable period multiplied by a fraction the numerator of which is the
number of days in the taxable period ending on the day before the Closing Date and the denominator
of which is the number of days in such entire taxable period);

- 5 -

 

          (c) Any liability or obligation for or in respect of any loan, other indebtedness for money
borrowed, or account payable of Seller or any of its Affiliates, including any such liabilities
owed to Affiliates of Seller;

          (d) Any liability or obligation arising as a result of any legal or equitable action or
judicial or administrative proceeding initiated at any time, to the extent relating to any action
or omission on or prior to the Closing Date by or on behalf of Seller or any of Affiliates,
including, without limitation, any liability for infringement of intellectual property rights,
breach of product warranty, injury or death caused by products, or violations of federal or state
securities or other laws;

          (e) Any liability or obligation arising on or prior to the Closing Date out of any “employee
benefit plan,” as such term is defined by the Employee Retirement Income Security Act of 1974
(“ERISA”) or other employee benefit plans;

          (f) Any liability or obligation for making payments of any kind (including as a result of the
sale of Purchased Assets or as a result of the termination of employment by Seller of employees, or
other claims arising out of the terms and conditions of employment with Seller, or for vacation or
severance pay or otherwise) to employees of Seller or in respect of payroll taxes for employees of
Seller;

          (g) Any liability of Seller incurred in connection with the making or performance of this
Agreement and the transactions contemplated hereby;

          (h) Any liability of Seller arising out of the violation of or failure to comply with any
environmental laws applicable to any aspect of the Business; and

          (i) Any costs or expenses of Seller incurred in connection with shutting down, deinstalling
and removing equipment not purchased by Buyer, and the costs associated with all contracts and
agreements not assumed by Buyer.

     2.5 Purchase Price. Subject to the performance by Seller of all of its obligations
under this Agreement (including delivering all documents required to be delivered) at the Closing,
in consideration of the acquisition of the Purchased Assets under Section 2.1, Buyer agrees to
deliver to Seller evidence that Buyer has cut a check in the amount of $50,000.00 (the
“Purchase Price”) payable to Seller which check shall be delivered to Seller within seven
(7) business days of the Closing Date, and Buyer agrees to assume the Assumed Liabilities.

     2.6 Allocation of Purchase Price. The Purchase Price shall be allocated [*****] to the
tangible personal property acquired pursuant to this Agreement for purposes of complying with the
requirements of Section 1060 of the Code and the regulations thereunder. Buyer and Seller agree to
each prepare and file on a timely basis with the Internal Revenue Service (and applicable state tax
authorities) substantially identical and supplemental Internal Revenue

 

**** Confidential Treatment Requested.

 

 

Service Forms 8594 (and corresponding state tax forms) consistent with such allocation of the
Purchase Price. If any Tax authority challenges such allocation, the party receiving notice of
such challenge shall give the other prompt written notice thereof and the parties shall cooperate
in order to preserve the effectiveness of such allocation. For purposes of this allocation, no
value is being attributed to goodwill or going concern, covenant not to compete or contingent or
assumed liabilities.

3. Closing

     3.1 Closing. Subject to the terms and conditions of this Agreement, the Closing shall
take place on such date, as soon as practicable after all conditions precedent in Sections 8 and 9
have been satisfied or waived, as the parties may agree (the “Closing Date”), but in any
case, no later than February 28, 2007, provided however that the parties may mutually agree to
extend the time permitted to effect the Closing beyond February 28, 2007.

     3.2 Actions at the Closing. At the Closing, Seller shall deliver the Purchased Assets
to Buyer, Buyer shall deliver the Purchase Price to Seller, and Buyer and Seller shall take such
actions and execute and deliver such agreements, bills of sale, and other instruments and documents
as necessary or appropriate to effect the transactions contemplated by this Agreement in accordance
with its terms, including without limitation the following:

          (a) Bill of Sale; Transfer Documents. Seller shall deliver to Buyer a general Bill of
Sale substantially in the form attached as Exhibit A and any other transfer documents as
may be required or desirable to effect the transfer of any of the Purchased Assets to Buyer (the
“Transfer Documents”) in each case duly executed by Seller, and in the aggregate assigning
to Buyer all of Seller’s right, title and interest in and to the Purchased Assets. Buyer may
designate one or more of its Affiliates as the recipient of certain of the Purchased Assets, and as
the party to assume certain of the Assumed Liabilities, in which case Seller shall transfer such
Purchased Assets and Assumed Liabilities to Buyer or the Affiliate(s) designated by Buyer pursuant
to such Transfer Documents.

          (b) Purchase Price. Buyer shall deliver to Seller evidence that Buyer has cut a check
in the amount of the Purchase Price payable to Seller, which check shall be delivered to Seller
within seven (7) business days of the Closing Date.

          (c) Title. Seller shall provide reasonable evidence of valid title to such of the
Purchased Assets as Buyer may reasonably request in writing prior to the Closing, in form and
substance reasonably satisfactory to Buyer.

          (d) Third Party Consents and Assignments. Seller shall deliver to Buyer any
assignments and the Required Consents (as defined below) to assignment, that it has obtained in
respect of any Purchased Assets, duly executed by parties having the authority to so assign or
consent to assign, in form and substance as Buyer shall reasonably request, as well as a written
confirmation from such third parties that the Purchased Assets are in good standing.

 

 

          (e) Seller Documents. At the Closing, Seller shall deliver to Buyer any and all
documents required to satisfy the conditions set forth in Section 9 of this Agreement and any other
closing documents reasonably requested by Buyer.

          (f) Buyer Documents. At the Closing, Buyer shall deliver to Seller any and all
documents required to satisfy the conditions set forth in Section 8 of this Agreement and any other
closing documents reasonably requested by Seller.

          (g) Post-Closing Actions. Subsequent to the Closing Date, Seller shall, and shall
cause any Affiliate of Seller to, from time to time execute and deliver, upon the request of Buyer,
all such other and further materials and documents and instruments of conveyance, transfer or
assignment as may reasonably be requested by Buyer to effect, record or verify the transfer to and
vesting in Buyer of Seller’s and any of Seller’s Affiliates’ right, title and interest in and to
the Purchased Assets, free and clear of all Liens in accordance with the terms of this Agreement.

4. Representations and Warranties of Seller

     Each representation and warranty set forth below is qualified by any exception or disclosures
set forth in the Seller Disclosure Schedule attached hereto, which exceptions specifically
reference the Section(s) to be qualified. In all other respects, each representation and warranty
set out in this Section 4 is not qualified in any way whatsoever, will not merge on Closing or by
reason of the execution and delivery of any agreement, document or instrument at the Closing, will
remain in force on and after the Closing Date, is given with the intention that liability is not
confined to breaches discovered before Closing, is separate and independent and is not limited by
reference to any other representation or warranty or any other provision of this Agreement, and is
made and given with the intention of inducing the Buyer to enter into this Agreement. Except as
otherwise set forth in the Seller Disclosure Schedule, Seller represents and warrants to Buyer as
follows:

     4.1 Organization, Standing and Power. US Seller is a corporation duly organized,
validly existing and in good standing under the laws of the State of California, and Cayman Seller
is a corporation duly organized, validly existing and in good standing under the laws of the Cayman
Islands. Seller has the requisite corporate power and authority and all necessary permits,
authorizations, consents, and approvals of all Governmental Entities to own, lease and operate its
properties and to carry on the Business as now being conducted and as proposed to be conducted,
except where the failure to have such power, authority and governmental approvals would not,
individually or in the aggregate, have a Material Adverse Effect. Seller is duly qualified or
licensed as a foreign corporation to do business, and is in good standing, in each jurisdiction
where the character of the properties owned, leased or operated by it or the nature of its business
makes such qualification or licensing necessary, except for failures to be so qualified or licensed
and in good standing that would not, individually or in the aggregate, have a Material Adverse
Effect. US Seller has previously delivered to Buyer true and complete copies of the Articles of
Incorporation and Bylaws of US Seller as presently in effect. Cayman Seller has delivered to Buyer
true and complete copies of the Articles of Association and related charter documents of Cayman
Seller as presently in effect.

- 8 -

 

     4.2 Authority. The execution and delivery of this Agreement (and all other agreements
and instruments contemplated under this Agreement) by Seller, the performance by Seller of its
obligations hereunder and thereunder, and the consummation by Seller of the transactions
contemplated hereby and thereby have been duly authorized by all necessary action by the Board of
Directors and shareholders of Seller, and no other act or proceeding on the part of or on behalf of
Seller or its shareholders is necessary to approve the execution and delivery of this Agreement and
such other agreements and instruments, the performance by Seller of its obligations hereunder and
thereunder and the consummation of the transactions contemplated hereby and thereby. The signatory
officers of Seller have the power and authority to execute and deliver this Agreement and all of
the other agreements and instruments to be executed and delivered by Seller pursuant hereto, to
consummate the transactions hereby and thereby contemplated and to take all other actions required
to be taken by Seller pursuant to the provisions hereof and thereof.

     4.3 Execution and Binding Effect. This Agreement has been duly and validly executed
and delivered by Seller and constitutes, and the other agreements and instruments to be executed
and delivered by Seller pursuant hereto, upon their execution and delivery by Seller, will
constitute (assuming, in each case, the due and valid authorization, execution and delivery thereof
by Buyer), legal, valid and binding agreements of Seller, enforceable against Seller in accordance
with their respective terms.

     4.4 Consents and Approvals of Governmental Entities. Other than the Governmental
Authorizations there is no requirement applicable to Seller to make any filing, declaration or
registration with, or to obtain any permit, authorization, consent or approval of, any Governmental
Entity as a condition to the lawful consummation by Seller of the transactions contemplated by this
Agreement and the other agreements and instruments to be executed and delivered by Seller pursuant
hereto or the consummation by Seller of the transactions contemplated herein or therein.

     4.5 No Violation. Neither the execution, delivery and performance of this Agreement
and all of the other agreements and instruments to be executed and delivered pursuant hereto, nor
the consummation of the transactions contemplated hereby or thereby, will, with or without the
passage of time or the delivery of notice or both, (a) conflict with, violate or result in any
breach of the terms, conditions or provisions of the Articles of Incorporation or Bylaws of Seller,
(b) conflict with or result in a violation or breach of, or constitute a default or require consent
of any Person (or give rise to any right of termination, cancellation or acceleration) under, any
of the terms, conditions or provisions of any contract, notice, bond, mortgage, indenture, license,
franchise, permit, agreement, lease or other instrument or obligation to which Seller is a party or
by which Seller or any of the Purchased Assets may be bound, (c) violate any statute, ordinance or
law or any rule, regulation, order, writ, injunction or decree of any Governmental Entity
applicable to Seller or by which any properties or assets of Seller may be bound, or (d) result in
any cancellation of, or obligation to repay, any grant, loan or other financial assistance received
by Seller from any Governmental Entity. No “bulk sales” legislation applies to the transactions
contemplated by this Agreement.

- 9 -

 

     4.6 Consents. Schedule 4.6 sets forth each agreement, contract, license or
other instrument binding upon Seller requiring a consent as a result of the execution, delivery and
performance of this Agreement or the consummation of the transactions contemplated hereby (each a
“Required Consent”).

     4.7 SEC Documents; Financial Information. Seller has delivered to Buyer a true and
complete copy of all filings it has made with the Securities and Exchange Commission
(“SEC”) since January 1, 2005 (the “SEC Documents”). The SEC Documents contain an
audited consolidated balance sheet of Seller as of December 31, 2005 and the related audited
consolidated statements of operations and cash flows for the year then ended and the Seller’s
unaudited consolidated balance sheet as of September 30, 2006, and the related unaudited
consolidated statements of operations and cash flows for the nine month period then ended. Seller
has also provided its unaudited balance sheet as of September 30, 2006, a copy of which is set
forth in the Seller Disclosure Schedule (the “Last Balance Sheet” and together with the SEC
Documents, “Seller’s Financials”). Seller’s Financials, and the notes thereto are correct
and complete in all material respects and were prepared in accordance with GAAP applied on a
consistent basis throughout the periods indicated and consistent with each other. Seller’s
Financials present fairly the financial condition and operating results and cash flows of Seller as
of the dates and during the periods indicated therein, subject, in the case of the unaudited
statements, to normal year-end adjustments, which will not be material in amount or significance.
Seller’s Financials accurately record the Purchased Assets as assets of Seller on each applicable
balance sheets included in the SEC Documents as well as on the Last Balance Sheet. Since the date
of the Last Balance Sheet, there has been no material change in Seller’s accounting policies and as
of their respective filing dates, the SEC Documents complied in all material respects with the
requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
none of the SEC Documents nor the Last Balance Sheet contained any untrue statement of a material
fact or omitted to state a material fact required to be state therein or necessary to make the
statement made therein, in light of the circumstances in which they were made, not misleading,
except to the extent corrected by a document subsequently filed with the SEC and provided to Buyer
prior to the date hereof.

     4.8 No Undisclosed Liabilities. The Purchased Assets do not have any liability, Lien,
indebtedness, obligation, expense, claim, deficiency, guaranty or endorsement of any type
associated with them, whether accrued, absolute, contingent, matured, unmatured or other (whether
or not required by GAAP to be reflected in the Seller’s Financials) which (i) have not been
reflected in the Last Balance Sheet or the US Seller’s annual report on Form 10-K, or (ii) have not
arisen in the ordinary course of the Seller’s business since the date of the Last Balance Sheet,
and are disclosed in the Seller Disclosure Schedule.

     4.9 Assets Generally.

          (a) The Purchased Assets include all tangible properties and Contracts used by Seller in
operating the Business and necessary for Buyer to operate the Business after the Closing Date.
Other than the Required Consents (including without limitation required Contract assignments) and
the Governmental Approvals, no licenses or other consents from, or payments

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to, any other Person are or will be necessary for Buyer to operate the Business and use the
Purchased Assets in the manner in which Seller has operated the same.

          (b) Seller holds good and marketable title, license to or leasehold interest in all of the
Purchased Assets and has the complete and unrestricted power and the unqualified right to sell,
assign and deliver the Purchased Assets to Buyer. Upon consummation of the transactions
contemplated by this Agreement, Buyer will acquire good and marketable title, license or leasehold
interest to the Purchased Assets free and clear of any Liens and there exists no restriction on the
use or transfer of the Purchased Assets, except as may be assumed hereunder by Buyer as an Assumed
Liability or as may otherwise be expressly disclosed in Schedule 4.9(b) hereto. No Person
other than Seller has any right or interest in the Purchased Assets, including the right to grant
interests in the Purchased Assets to third parties, except for Purchased Assets licensed or leased
from third parties which are set forth in the Seller Disclosure Schedule and identified as such.

          (c) None of the Purchased Assets that constitute tangible personal property is held under any
lease, security agreement, conditional sales contract, Lien, or other title retention or security
arrangement.

          (d) Except as provided in this Agreement, no restrictions will exist on Buyer’s right to sell,
resell, license or sublicense any of the Purchased Assets or engage in the Business, nor will any
such restrictions be imposed on Buyer as a consequence of the transactions contemplated by this
Agreement or by any agreement referenced in this Agreement.

          (e) All of the Purchased Assets are in operating condition and repair, as required for their
use in the Business as presently conducted, and conform to all applicable laws, and no notice of
any violation of any law relating to any of the Purchased Assets or Assumed Liabilities has been
received by Seller.

     4.10 Intellectual Property.

          (a) The execution, delivery and performance of this Agreement and the consummation of the
transactions contemplated hereby (including without limitation the continued conduct by Buyer after
the Closing Date of the Business as presently conducted by Seller and the incorporation of any
intellectual property of the Business in any product of Buyer or an affiliate of Buyer) will not
breach, violate or conflict with any instrument or agreement governing any intellectual property
necessary or required for, or used in, the conduct of the Business as presently conducted and will
not cause the forfeiture or termination or give rise to a right of forfeiture or termination of any
such intellectual property or in any material way impair the right of Buyer or any of its
affiliates to use, sell, license or dispose of, or to bring any action for the infringement of, any
such intellectual property or portion thereof;

          (b) Seller has not received any notice asserting that any of the Purchased Assets or the
proposed use, sale, license or disposition thereof conflicts or will conflict with the rights of
any other party, and to Seller’s knowledge there is no basis for any such assertion.

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     4.11 Licenses and Permits. Seller holds all consents, approvals, registrations,
certifications, authorizations, permits and licenses of, and has made all filings with, or
notifications to, all Governmental Entities pursuant to applicable requirements of all federal,
state, local and foreign laws, ordinances, governmental rules or regulations applicable to the
Business, including, but not limited to, all such laws, ordinances, governmental rules or
regulations relating to the Purchased Assets (at their current level of development and use). The
Business is in compliance with all federal, state, local and foreign laws, ordinances, governmental
rules and regulations relating to the products manufactured by the Business or otherwise related to
the Business and Seller has no reason to believe that any material consents, approvals,
authorizations, registrations, certifications, permits, filings or notifications that it has
received or made to operate the Business are invalid or have been or are being suspended, canceled,
revoked or questioned. There is no investigation or inquiry to which Seller is a party or, to
Seller’s knowledge, pending or threatened, relating to the Business and its compliance with
applicable foreign, state, local or foreign laws, ordinances, governmental rules or regulations.
Each such consent, approval, registration, certification, authorization, permit or license is
transferable and shall be transferred to Buyer in accordance with the terms of this Agreement.

     4.12 Employees.

          (a) Schedule 4.12 sets forth the names, compensation levels and job titles of all of
the employees of Seller currently engaged in the Business. All employees, consultants, officers,
directors and shareholders of Seller or any Seller Subsidiary that have had access to the Purchased
Assets are parties to a written agreement in Seller’s standard forms (copies of which have been
provided to Buyer)(each, a “Confidentiality Agreement”), under which each such person or
entity (i) is obligated to disclose and transfer to Seller, without the receipt by such person of
any additional value therefor (other than normal salary or fees for consulting services), all
inventions, developments and discoveries which, during the period of employment with or performance
of services for Seller, he or she makes or conceives of either solely or jointly with others, that
relate to any subject matter with which his or her work for Seller may be concerned, or relate to
or are connected with the Business, products or projects of Seller, or involve the use of the time,
material or facilities of Seller, and (ii) is obligated to maintain the confidentiality of
proprietary information of Seller. None of Seller’s employees, consultants, officers or directors
is obligated under any contract (including licenses, covenants or commitments of any nature) or
other agreement, or subject to any judgment, decree or order of any court or administrative agency,
that would conflict with their obligation to promote the interests of Seller with regard to the
Business or the Purchased Assets or that would conflict with the Business or the Purchased Assets.
Neither the execution nor the delivery of this Agreement, nor the carrying on of the Business by
its employees and consultants, will conflict with or result in a breach of the terms, conditions or
provisions of, or constitute a default under, any contract, covenant or instrument under which any
of such persons or entities are now obligated. It is currently not necessary nor will it be
necessary for Seller to utilize in the Business any inventions of any of such persons or entities
(or people it currently intends to hire) made or owned prior to their employment by or affiliation
with Seller, nor is it or will it be necessary to utilize any other assets or rights of any such
persons or entities (or people it currently intends to hire) made or owned prior to their
employment with or engagement by Seller, in violation of any registered patents, trade names,
trademarks or copyrights or any other limitations or restrictions to which any such persons or

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entity is a party or to which any of such assets or rights may be subject. To the Seller’s knowledge, none of
Seller’s employees, consultants, officers, directors or shareholders that has had knowledge or
access to information relating to the Purchased Assets has taken, removed or made use of any
proprietary documentation, manuals, products, materials, or any other tangible item from his or her
previous employer relating to the Purchased Assets by such previous employer which has resulted in
Seller’s access to or use of such proprietary items included in the Purchased Assets, and pursuant
to the transaction hereunder, Buyer will not gain access to or inadvertently make use of any such
proprietary items.

          (b) Except for the Confidentiality Agreements, there are no written or oral contracts of
employment between Seller and any Employee.

          (c) Seller is not a party to a collective bargaining agreement with any trade union, Seller’s
employees are not members of a trade union certified as a bargaining agent with the Seller and no
proceedings to implement any such collective bargaining agreement or certifications are pending.

     4.13 Employee Benefit and Compensation Plans. Buyer will incur no liability with
respect to, or on account of, and Seller will retain any liability for, and on account of, any
employee benefit plan of Seller, any of its Affiliates or any predecessor employer of any employee,
including, but not limited to, liabilities Seller may have to such employees under all employee
benefit schemes, incentive compensation plans, bonus plans, pension and retirement plans, vacation,
profit-sharing plans (including any profit-sharing plan with a cash-or-deferred arrangement) share
purchase and option plans, savings and similar plans, medical, dental, travel, accident, life,
disability and other insurance and other plans or arrangements, whether written or oral and whether
“qualified” or “non-qualified,” or to any employee as a result of termination of employment by
Seller as contemplated by this Agreement. Seller has not, with respect to any employee, maintained
or contributed to, or been obligated or required to contribute to, any retirement or pension plan
or any employee benefit plan. Seller is not a party to any collective bargaining agreement
covering any employee and Seller knows of no effort to organize any such employee as a part of any
collective bargaining unit. The Seller has complied with all of its obligations (including
obligations to make contributions) in respect of the pension funds of which its employees are
members, there is no outstanding liability of the Seller or any of its Affiliates to any such funds
and all such funds are fully funded to meet all potential claims for benefits by any and all such
employees and any former employee.

     4.14 Taxes. All Taxes have been or will be paid by Seller for all periods (or
portions thereof) prior to and including the Closing Date. Seller and any other person required to
file returns or reports of Taxes have duly and timely filed (or will file prior to the Closing
Date) all returns and reports of Taxes required to be filed prior to such date, and all such
returns and reports are true, correct, and complete. There are no liens for Taxes on any of the
Purchased Assets. Seller has complied with all record keeping and tax reporting obligations
relating to sales taxes and income and employment taxes due with respect to compensation paid to
employees or independent contractors providing services to the Business. US Seller is not a
“foreign person” within the meaning of Section 1445(f)(3) of the Code. There are no pending or,

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to Seller’s knowledge, threatened proceedings with respect to Taxes, and there are no outstanding waivers or
extensions of statutes of limitations with respect to assessments of Taxes.

     4.15 Compliance with Law. The operation of the Business has been conducted in all
material respects in accordance with all applicable laws, regulations and other requirements of
Governmental Entities having jurisdiction over the same.

     4.16 Products. Each of the products and services produced, sold or provided by Seller
in connection with the Business is, and at all times has been, in compliance in all material
respects with all applicable federal, state, local and foreign laws and regulations and is, and at
all relevant times has been, fit for the ordinary purposes for which it is intended to be used and
conforms in all material respects to any promises or affirmations of fact made in connection with
the sale of such product or service. There is no design defect with respect to any of such
products, and each of such products contains adequate warnings, presented in a reasonably prominent
manner, in accordance with applicable laws and current industry practice with respect to its
contents and use.

     4.17 Product Liability. There are no claims, actions, suits, inquiries, proceedings
or investigations pending by or against Seller, relating to any products the Business and
containing allegations that such products are defective or were improperly designed or manufactured
or improperly labeled or otherwise improperly described for use.

     4.18 Litigation; Other Claims.

          (a) There are no claims, actions, suits, inquiries, proceedings, or investigations against
Seller, or any of its officers, directors or shareholders, relating to the Business, the Purchased
Assets or Seller’s employees which are currently pending or threatened, at law or in equity or
before or by any Governmental Entity, or which challenges or seeks to prevent, enjoin, alter or
materially delay any of the transactions contemplated hereby, nor is Seller aware of any basis for
such claims, actions, suits, inquiries, proceedings, or investigations; and no Governmental Entity
has at any time challenged or questioned the legal right of Seller to manufacture, offer or sell
any of its products or services in the present manner or style thereof.

          (b) There are no grievance or arbitration proceedings pending or threatened, and there are no
actual or threatened strikes or work stoppages with respect to the Business, the Purchased Assets
or Seller’s employees, nor is Seller aware of any basis for such proceedings or events.

     4.19 Defaults. Seller is not in default under or with respect to any judgment, order,
writ, injunction or decree of any court or any Governmental Entity which could reasonably be
expected to have a Material Adverse Effect on the Business or any of the Purchased Assets. There
does not exist any default by Seller or by any other Person, or event that, with notice or lapse of
time, or both, would constitute a default under any agreement entered into by Seller as part of the
operations of the Business which could reasonably be expected to have a Material and Adverse Effect
on the Business or the Purchased Assets, and no notices of breach thereof have been received by
Seller.

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     4.20 Full Disclosure. Neither this Agreement nor any other agreement, exhibit,
schedule or officer’s certificate being entered into or delivered pursuant to this Agreement
contains any untrue statement of a material fact or, in light of the facts stated therein, omits to
state any material fact necessary in order to make the statements contained in such document not
misleading.

     4.20 Brokers and Finders. Neither Seller nor any of its officers, directors or
employees has employed any broker or finder or incurred any liability for any brokerage fee,
commission or finder’s fee in connection with the transactions contemplated by this Agreement.

     4.21 Fair Consideration; No Fraudulent Conveyance. The sale of the Purchased Assets
pursuant to this Agreement is made in exchange for fair and equivalent consideration. Seller is
not now insolvent and will not be rendered insolvent by the sale, transfer and assignment of the
Purchased Assets pursuant to the terms of this Agreement. Seller is not entering into this
Agreement or any of the other agreements referenced in this Agreement with the intent to defraud,
delay or hinder its creditors and the consummation of the transactions contemplated by this
Agreement, and the other agreements referenced in this Agreement, will not have any such effect.
The transactions contemplated in this Agreement or any agreements referenced in this Agreement will
not constitute a fraudulent conveyance, or otherwise give rise to any right of any creditor of
Seller to any of the Purchased Assets after the Closing.

     4.22 Insurance. The Seller Disclosure Schedule lists all insurance policies and
fidelity bonds covering the Purchased Assets. There is no claim by Seller pending under any of
such policies or bonds as to which coverage has been questioned, denied or disputed by the
underwriters of such policies and bonds. All premiums due and payable under all such policies and
bonds have been paid and Seller is otherwise in material compliance with the terms of such policies
and bonds (or other policies and bonds providing substantially similar insurance coverage). There
is no threatened termination of, or material premium increase with respect to, any of such
policies.

5. Representations and Warranties of Buyer

     Buyer represents and warrants to Seller as follows:

     5.1 Organization. Buyer is a corporation duly formed and validly existing under the
laws of California, and has full corporate power and authority and the legal right to execute and
deliver this Agreement and all of the other agreements and instruments to be executed and delivered
by Buyer pursuant hereto, and to consummate the transactions contemplated hereby and thereby.

     5.2 Authority. The execution and delivery of this Agreement (and all other agreements
and instruments contemplated hereunder) by Buyer, the performance by Buyer of its obligations
hereunder and thereunder, and the consummation by Buyer of the transactions contemplated hereby and
thereby have been duly authorized by all necessary action by the Board of Directors of Buyer, and
no other act or proceeding on the part of Buyer or its shareholders is necessary to approve the
execution and delivery of this Agreement and such other agreements and
instruments, the performance by Buyer of its obligations hereunder and thereunder and the

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consummation of the transactions contemplated hereby and thereby. The signatory officers of Buyer
have the power and authority to execute and deliver this Agreement and all of the other agreements
and instruments to be executed and delivered by Buyer pursuant hereto, to consummate the
transactions hereby and thereby contemplated and to take all other actions required to be taken by
Buyer pursuant to the provisions hereof and thereof.

     5.3 Execution and Binding Effect. This Agreement has been duly and validly executed
and delivered by Buyer and constitutes, and the other agreements and instruments to be executed and
delivered by Buyer pursuant hereto, upon their execution and delivery by Buyer, will constitute
(assuming, in each case, the due and valid authorization, execution and delivery thereof by
Seller), legal, valid and binding agreements of Buyer, enforceable against Buyer in accordance with
their respective terms, except as enforceability may be limited by bankruptcy, insolvency,
moratorium, or other laws affecting the enforcement of creditors’ rights generally or provisions
limiting competition, and by equitable principles.

     5.4 Consent and Approvals. There is no requirement applicable to Buyer to make any
filing, declaration or registration with, or to obtain any permit, authorization, consent or
approval of, any Governmental Entity as a condition to the lawful consummation by Buyer of the
transactions contemplated by this Agreement and the other agreements and instruments to be executed
and delivered by Buyer pursuant hereto, except for filings (a) which are referred to in the Seller
Disclosure Schedule or (b) the failure of making which would not have a Material Adverse Effect on
the transactions contemplated hereby.

     5.5 No Violation. Neither the execution, delivery and performance of this Agreement
and of all the other agreements and instruments to be executed and delivered pursuant hereto, nor
the consummation of the transactions contemplated hereby or thereby, will, with or without the
passage of time or the delivery of notice or both, (a) conflict with, violate or result in any
breach of the terms, conditions or provisions of the Articles of Incorporation or Bylaws of Buyer,
(b) conflict with or result in a violation or breach of, or constitute a default or require consent
of any Person (or give rise to any right of termination, cancellation or acceleration) under, any
of the terms, conditions or provisions of any notice, bond, mortgage, indenture, license,
franchise, permit, agreement, lease or other instrument or obligation to which Buyer is a party or
by which Buyer or any of its properties or assets may be bound, or (c) violate any statute,
ordinance or law or any rule, regulation, order, writ, injunction or decree of any Governmental
Entity applicable to Buyer or by which any of its properties or assets may be bound.

     5.6 Adequate Funds. As of the date the parties execute this Agreement, Buyer has
sufficient cash on hand to pay the Purchase Price and otherwise consummate the transactions
contemplated by this Agreement.

6. Covenants.

     6.1 Access to Information.

          (a) Prior and subsequent to the Closing, Seller will permit Buyer to make a full and complete
investigation of the Purchased Assets and to receive from Seller all information of

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Seller relating
to the Purchased Assets or reasonably related to Seller’s conduct of the Business. Without
limiting this right, Seller will give to Buyer and its accountants, legal counsel, and other
representatives full access, during normal business hours, at a mutually agreeable location
arranged in advance, to all of the books, records, files, documents, properties, and contracts of
Seller relating to the Purchased Assets or reasonably related to Seller’s conduct of the Business
and allow Buyer and any such representatives to make copies thereof, all of which shall be made
available in an organized fashion and so as to facilitate an orderly review. This Section 6.1
shall not affect or be deemed to modify any representation or warranty contained herein or the
conditions to the obligations of the parties to consummate the transactions contemplated by this
Agreement. Seller shall maintain and make available the information and records specified in this
Section 6.1(a) in the ordinary course of Seller’s business and document retention policies, as if
the transactions contemplated by this Agreement had not occurred.

          (b) At all times following the Closing, each party shall provide the other party (at such
other party’s expense) with such reasonable assistance, including the provision of available
relevant records or other information and reasonable access to and cooperation of any employees, as
may be reasonably requested by either of them in connection with the preparation of any financial
statement or tax return, any audit or examination by any taxing authority, or any judicial or
administrative proceeding relating to liability for Taxes, or other matters that may be related to
or involving the Assets.

     6.2 Third Party Consents. Seller and Buyer shall use commercially reasonable efforts
to obtain, within the applicable time periods required, all Required Consents (including without
limitation all required Contract assignments), waivers, permits, consents and approvals and to
effect all registrations, filings and notices with or to third parties or Governmental Entities
which are necessary to consummate the transactions contemplated by this Agreement so as to preserve
all rights of, and benefits to, the Buyer in the Purchased Assets.

     6.3 Certain Notifications. At all times prior to the Closing, Seller and Buyer shall
promptly notify the other party in writing of the occurrence of any event which will result, or has
a reasonable prospect of resulting, in the failure to satisfy any of the conditions specified in
Section 8 or Section 9 of this Agreement.

     6.4 Best Efforts. The Seller shall use its best efforts (i) to cause to be fulfilled
and satisfied all of the conditions to the Closing set forth in Section 8 below, (ii) to cause to
be performed all of the matters required of it at the Closing and (iii) to cause the Contracts to
be assigned to Buyer.

     6.5 Seller’s Conduct of the Business Prior to Closing. During the period from the
date of this Agreement to the Closing Date, Seller will conduct the Business in its ordinary and
usual course, consistent with past practice, and will use all reasonable efforts to preserve intact
all rights, privileges, franchises and other authority of the Business, to retain the employees,
and to maintain favorable relationships with licensors, licensees, suppliers, contractors,
distributors, customers, and others having relationships with the Business. Seller shall promptly
notify Buyer of any event or occurrence or emergency not in the ordinary course of business, and any
material event involving the Business or the Purchased Assets. Without limiting the generality of
the foregoing, and except as approved in writing by Buyer in advance, prior to the Closing, Seller:

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          (a) will not create, incur or assume (i) any borrowings under capital leases, or (ii) any
obligation which would in any material way affect the Business, the Purchased Assets or Buyer’s
ability to conduct the Business in substantially the same manner and condition as conducted by
Seller on the date of this Agreement;

          (b) will not change in any manner the compensation of, or agree to provide additional
benefits to, or enter into any employment agreement with, any employee;

          (c) will maintain insurance coverage in amounts adequate to cover the reasonably anticipated
risks of the business conducted with the Purchased Assets;

          (d) will not acquire or agree to acquire by merging or consolidating with, or by purchasing
any assets or equity securities of, or by any other manner, any business or any corporation,
partnership, association or other business organization or division thereof, or otherwise acquire
or agree to acquire any assets which are material, individually or in the aggregate, to the
Business.

          (e) will not sell, dispose of or encumber any of the Purchased Assets or license any
Purchased Assets to any Person;

          (f) will not enter into any agreements or commitments relating to the Business, except on
commercially reasonable terms in the ordinary course of business of the Business;

          (g) will comply in all material respects with all laws and regulations applicable to the
Business;

          (h) will not enter into any agreement with any third party for the distribution of any of the
Purchased Assets;

          (i) will use reasonable efforts to assist Buyer in employing after the Closing Date those
employees to whom offers of employment are made by Buyer, and will not (and will cause its
Affiliates not to) solicit such employees to remain in the employ of Seller or any of its
Affiliates after the Closing Date;

          (j) will not change or announce any change to the products or services sold by the Business
except with Buyer’s written consent or at Buyer’s request;

          (k) will not expand the use of the Purchased Assets within the organization of Seller;

          (l) will not violate, amend or otherwise change in any way the terms of any contracts
relating to the Purchased Assets; and

          (m) will not commence a lawsuit related to or involving the Purchased Assets other than (i)
for the routine collection of bills; (ii) for injunctive relief on the grounds that Seller has
suffered immediate and irreparable harm not compensable in money damages, provided that Seller has
obtained the prior written consent of Buyer, such consent not to be unreasonably withheld; or (iii)
for a breach of this Agreement.

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     6.6 No Other Bids. Until the earlier to occur of (a) the Closing or (b) the
termination of this Agreement pursuant to its terms, Seller shall not, and Seller shall not
authorize any of its officers, directors, employees or other representatives to, directly or
indirectly, (i) initiate, solicit or encourage (including by way of furnishing information
regarding the Business or the Purchased Assets) any Acquisition Proposal, or make any statements to
third parties which may reasonably be expected to lead to any Acquisition Proposal, or (ii)
negotiate, engage in any substantive discussions, or enter into any agreement, with any Person
concerning any Acquisition Proposal.

     6.7 Post-Closing Access to Information. If, after the Closing Date, in order properly
to operate the Business or prepare documents or reports required to be filed with governmental
authorities or Buyer’s financial statements, it is necessary that Buyer obtain additional
information within Seller’s possession relating to the Purchased Assets or the Business, Seller
will furnish or cause its representatives to furnish such information to Buyer. Such information
shall include, without limitation, all agreements between Seller and any Person relating to the
Business. Seller shall maintain and make available the information and records specified in this
Section 6.7 for a period of ten (10) years after the Closing Date.

     6.8 Post-Closing Cooperation. Seller agrees that, if reasonably requested by Buyer,
it will cooperate with Buyer, at Buyer’s expense, in enforcing the terms of any agreements between
Seller and any third party involving the Business, including without limitation terms relating to
confidentiality and the protection of intellectual property rights. In the event that Buyer is
unable to enforce its intellectual property rights against a third party as a result of a rule or
law barring enforcement of such rights by a transferee of such rights, Seller agrees to reasonably
cooperate with Buyer by assigning to Buyer such rights as may be required by Buyer to enforce its
intellectual property rights in its own name. If such assignment still does not permit Buyer to
enforce its intellectual property rights against the third party, Seller agrees to initiate
proceedings against such third party in Seller’s name, provided that Buyer shall be entitled to
participate in such proceedings and provided further that Buyer shall be responsible for the
expenses of such proceedings.

     6.9 Public Announcements. Until otherwise mutually agreed, Buyer and Seller shall
advise and confer with each other prior to the issuance of any reports, statements or releases
concerning this Agreement (including the exhibits and schedules hereto) and the transactions
contemplated herein. Neither Buyer nor Seller will make any public disclosure with respect to the
transactions contemplated herby or with respect to the Closing unless both parties mutually agree
on the text and timing of such public disclosure. Notwithstanding the foregoing, nothing contained
herein shall prevent either party at any time from furnishing any information to any Governmental
Entity as may be required by law, provided however, that the parties shall consult with each other
and use all reasonable efforts to agree on the content and manner of any disclosure that may be
permitted or required in the future.

     6.10 Post-Closing Actions. Subsequent to the Closing Date, Seller shall, from time to
time, execute and deliver, upon the request of Buyer, all such other and further materials and
documents and instruments of conveyance, transfer or assignment as may reasonably be requested by
Buyer to effect, record or verify the transfer to, and vesting in Buyer, of Seller’s

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right, title
and interest in and to the Purchased Assets, free and clear of all Liens, in accordance with the
terms of this Agreement. Buyer shall deliver a check payable to Seller in the amount of the
Purchase Price within seven (7) business days of the Closing Date.

     6.11 Non-Competition Agreement.

          (a) In consideration of the Buyer entering into this Agreement to acquire substantially all of
the tangible assets of the Business, Seller undertakes that for thirty (30) months after the
Closing Date neither it nor any Affiliate of it will:

               (i) participate, assist or otherwise be directly or indirectly involved or concerned,
financially or otherwise, as a member, shareholder, unitholder, director, consultant, adviser,
contractor, principal, agent, manager, beneficiary, partner, associate, trustee, financier or
otherwise in any business or activity which is the same as or substantially similar to the Business
or any material part of it (a “Restricted Business”);

               (ii) solicit, canvass, induce or encourage directly or indirectly any employee of Buyer to
leave the employment of Buyer, nor shall it hire any employee who left the employment of Buyer
during such thirty (30) month period without Buyer’s prior written consent, not to be unreasonably
withheld in the case of an employee for whom Buyer no longer can provide a viable position; or

               (iii) solicit, canvass, approach or accept any offer from any person or entity who was at any
time during the twenty-four (24) months immediately preceding the Closing Date a customer or
supplier of the Business with a view to establishing a relationship with or obtaining the patronage
of that person or entity in a Restricted Business.

Notwithstanding the foregoing, it is understood that Buyer and Seller and their respective
Affiliates may from time to time sell to or purchase from, or solicit sales or purchases to or
from, the same suppliers and/or customers. Such sales, purchases and solicitations are not
precluded under this Agreement except to the extent any such sales, purchases or solicitations by
Seller or its Affiliates are made with respect to Products or services in the Restricted Business
or are intended to benefit or support the participation of Seller or its Affiliates in the
Restricted Business.

          (b) If any of the separate and independent covenants and restraints referred to in clause (a)
of this Section 6.11 are or become invalid or unenforceable for any reason then that invalidity or
unenforceability will not affect the validity or enforceability of any other separate and
independent covenants and restraints.

          (c) If any prohibition or restriction contained in clause (a) of this Section 6.11 is judged
to go beyond what is reasonable in the circumstances, but would be judged reasonable if
that activity was deleted or that period or area was reduced, then the prohibitions or
restrictions apply with that activity deleted or period or area reduced by the minimum amount
necessary.

          (d) Seller acknowledges that:

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               (i) the prohibitions and restrictions contained in clause (a) of this Section 6.11
are
reasonable and necessary; and

               (ii) Seller has received valuable consideration for agreeing to the covenants in clause
(a) of
this Section 6.11.

          (e) Seller and Buyer acknowledge and agree that it will be difficult to compute the amount of
damage or loss to Buyer if Seller violated any of their agreements under this Section 6.11, that
Buyer will be without an adequate legal remedy if Seller violated the provisions of this Section
6.11, and that any such violation may cause substantial irreparable injury and damage to Buyer not
fully compensable by monetary damages. Therefore, Seller and Buyer agree that in the event of any
violation by Seller of this Section 6.11, Buyer shall be entitled (i) to recover from Seller
monetary damages, (ii) to obtain specific performance, injunctive or other equitable relief, of
either a preliminary or permanent type, and (iii) to seek any other available rights or remedies at
law or in equity which may be exercised concurrently with the rights granted hereunder.

     6.12 Permits. Seller will assist Buyer in obtaining any licenses, permits or
authorizations required for carrying on the Business but which are not transferable.

     6.13 Taxes. Buyer shall be responsible for paying, shall promptly discharge when due,
and shall reimburse, indemnify and hold harmless Seller from, any sales or use, import or export,
value added or similar tax or duty, transfer, excise, stamp, or other similar Taxes arising from,
imposed on or attributable to the transfer of the Purchased Assets pursuant to this Agreement or
otherwise as a direct result of the transactions contemplated by this Agreement.

     6.14 Confidential Information. Each party shall treat as confidential all Confidential
Information of the other party, shall not use such Confidential Information except as set forth
herein, and shall not disclose such Confidential Information to any third party without the prior
written consent of the Disclosing Party. Without limiting the foregoing, each of the parties
shall use at least the same degree of care which it uses to prevent the disclosure of its own
Confidential Information of like importance to prevent the disclosure of Confidential Information
disclosed to it by the other party under this Agreement. Each party hereby acknowledges as to the
other’s Confidential Information that such Confidential Information is commercially and
competitively valuable, that, by this Agreement, each party is taking reasonable steps to protect
its legitimate interest in its Confidential Information and that the restrictions contained in this
Agreement are reasonably necessary in order to protect each party’s legitimate interest in its
Confidential Information. For the avoidance of doubt, the parties hereby acknowledge and agree
that all information relating to the Assets being transferred to Buyer by Seller hereunder and

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personnel information (including without limitation social security numbers or other employment and
tax identification numbers, salary and performance information) relating to the Transferred
Employees (collectively, “Transaction Related Information”) shall hereafter be considered
Confidential Information of Buyer to the maximum extent such information has not been previously
disclosed by Seller to third parties who are not bound by an obligation of confidentiality with
respect thereto. The parties further agree that the exceptions to Confidential Information set
forth in subparts (ii), (iii) and (iv) of the last sentence of Section 1.1(h) shall not be
applicable to Seller’s confidentiality obligations with respect to any Transaction Related
Information.

7. Employee Matters

     7.1 Transferred Employees.

          (a) Offers of Employment. Subject to and in accordance with the provisions of this
Section 7, Buyer or one of its Affiliate has made offers of employment to employees of Seller who
were employed by Seller in the Business as of December 22, 2006 (the “Employees”). Seller
acknowledges that it cooperated with Buyer to identify those employees of Seller who are [*****]
for the [*****] (the “[*****]”). Other Employees engaged in the Business who are not designated as
[*****] may hereinafter be referred to as “[*****]”. Seller hereby acknowledges and agrees that
prior to the Closing, it authorized Buyer to contact any or all of the Employees for the purpose of
making offers of employment to each of them with Buyer (or any Affiliate or co-employer designated
by Buyer) and receiving written acceptances of such employment (in each case contingent on
consummation of the transactions contemplated by this Agreement). Contingent upon the Closing
having occurred, Buyer (or applicable Affiliates or co-employers designated by Buyer) shall be
deemed to have hired effective as of January 1, 2007 (the “Employment Date”) those
Employees to whom it made an offer of employment in accordance with this Section 7.1 and who
accepted such offer in the manner and within the time frame reasonably established by Buyer. Each
such Employee who actually transferred to employment with Buyer (or any Affiliate or co-employer
designated by Buyer) on the Employment Date and who shall continue to be employed by Seller on the
Closing Date is hereafter referred to as a “Transferred Employee.” Transferred Employees
shall not include any person on a disability leave of more than twenty-six (26) weeks.
Notwithstanding anything herein, Buyer shall not be obligated to hire any Employee unless an offer
of employment has been made to, and accepted by, such Employee; in addition, Buyer shall have no
obligation to hire any Employees of Seller after the Employment Date.

          (b) Transition. Contingent upon the Closing having occurred, the employment by Seller of
the Transferred Employees shall be deemed to have ended at the close of business on December 31,
2006 and the employment of the Transferred Employees by Buyer shall be deemed to have commenced at
12:01 a.m. on the Employment Date. The terms of employment with Buyer (or Buyer’s designated
co-employer or Affiliate) shall be as mutually agreed to between each Transferred Employee and
Buyer (or Buyer’s designated co-employer or Affiliate, as the case may be), subject to the
provisions of this Section 7.1. Buyer shall have no obligation with respect to payments of salary,
compensation, wages, health or similar benefits, commissions, bonuses (deferred or otherwise),
severance, stock or stock options or any other

 

 

sums due to any Transferred Employee that accrued before the Employment Date. Seller will be fully
responsible for all amounts payable to any Employee, including (without limitation) all termination
payments, redundancy compensation, severance pay, accrued vacation pay and other amounts payable in
respect of the termination of employment of any Employee in connection with the sale of the
Purchased Assets to Buyer. In addition, Seller will be fully responsible for all amounts owing to
Transferred Employees prior to the Employment Date. Notwithstanding the foregoing, Buyer will
assume all of the rights, obligations and liabilities related to the Labor Condition Application
(LCA) and immigration petitions of those Transferred Employees who are foreign national employees,
and Buyer (or its designated Affiliate or co-employer) will be a “successor in interest” employer
as the USCIS defines that term.

          (c) Retention of Employees Prior to Closing. Seller agrees that it used its best
efforts to retain the Employees as employees of the Business until the Employment Date, and it
assisted Buyer in securing the employment as of the Employment Date of those Employees to whom
Buyer (or the co-employer or Affiliate designated by Buyer) made offers of employment under
subsection (a) above. Seller acknowledges and agrees that it did not transfer any Employee to
employment with Seller outside of the Business prior to the Employment Date or without the consent
of Buyer. Prior to the Employment Date, Buyer had the right to request Seller to hire additional
employees for the Business, in which case Seller agreed to use commercially reasonable efforts to
identify and hire such employees.

     7.2 Compensation and Benefits of Transferred Employees. Contingent upon the Closing
having occurred, coverage for Transferred Employees under Buyer’s compensation and benefit plans
and other programs shall be deemed to have commenced as of 12:01 a.m. on the Employment Date.
Buyer is and shall continue be free to establish its own employee benefit plans; Buyer has and
shall continue to have no obligation to offer benefit plans of the same type or with terms similar
to or better than the terms of Seller’s current employee benefit plans, and Buyer shall not assume,
nor have any obligation to replace or convert any Seller stock options previously granted by Seller
to any Transferred Employees. Buyer may, at its option however, give each Transferred Employee
credit for such Transferred Employee’s years of most recent continuous service with Seller for
purposes of determining participation and benefit levels under all of Buyer’s vacation policies and
benefit plans and programs.

     7.3 Other Employees of the Business. With respect to each Employee of the Business as
of the Closing Date to whom Buyer has not made an offer of employment (each a “Non-Transferred
Employee”), Seller agrees that all such Non-Transferred Employees shall continue to be
employees of Seller other than in connection with the Business. Seller further acknowledges that
the Non-Transferred Employees shall not be employees of Buyer after the Closing (or after the
Employment Date).

     7.4 No Right to Continued Employment or Benefits. No provision in this Agreement
shall create any third party beneficiary or other right in any Person (including any beneficiary or
dependent thereof) for any reason, including, without limitation, in respect of continued, resumed
or new employment with Seller or Buyer (or any Affiliate or designated co-employer of Seller or
Buyer) or in respect of any benefits that may be provided, directly or indirectly, under any plan
or arrangement maintained by Seller, Buyer or any Affiliate or

 

 

designated co-employer of Seller or Buyer. Except as otherwise expressly provided in this
Agreement, Buyer is and has been under no obligation to hire any employee of Seller, provide any
employee with any particular benefits, or make any payments or provide any benefits to those
employees of Seller whom Buyer has chosen not to employ.

     7.5 No Solicitation or Hire by Seller. After the Employment Date, Seller agrees not
to solicit any Transferred Employee for employment without Buyer’s prior written consent. For
purposes of this Section 7.5, the term “solicit” shall not include the following activities by
Seller: (i) advertising for employment in any bulletin board (including electronic bulletin
boards), newspaper, trade journal or other publication available for general distribution to the
public without specific reference to any particular employees; and (ii) participation in any hiring
fair or similar event open to the public not targeted at Buyer’s employees.

8. Conditions to Buyer’s Obligations 

     The obligations of Buyer under this Agreement are subject to the fulfillment, prior to or on
the Closing Date, of each of the following conditions, all or any of which may be waived by Buyer
in writing, except as otherwise provided by law:

     8.1 Representations and Warranties True; Performance; Certificate.

          (a) The representations and warranties of Seller contained in this Agreement shall be true and
correct in all material respects as of the Closing Date with the same effect as though such
representations and warranties had been made or given again at and as of the Closing Date;

          (b) Seller shall have performed and complied with all of its agreements, covenants and
conditions required by this Agreement to be performed or complied with by them prior to or on the
Closing Date;

          (c) The conditions set forth in this Section 8 have been fulfilled or satisfied, unless
otherwise waived in writing by Buyer; and

          (d) Buyer shall have received a certificate, dated as of the Closing Date, signed and verified
by an officer of Seller on behalf of Seller certifying to the matters set forth in Sections 8.1(a)
and 8.1(b) above.

     8.2 Consents. All Governmental Authorizations, Required Consents and consents
required to transfer and assign any of the Purchased Asset to Buyer on the terms and conditions
provided to Seller, without change as a result of the transfer to Buyer, shall have been obtained.

     8.3 No Proceedings or Litigation.

          (a) No preliminary or permanent injunction or other order shall have been issued by any
Governmental Entity, nor shall any statute, rule, regulation or executive order be promulgated or
enacted by any Governmental Entity which prevents the consummation of the transactions contemplated
by this Agreement.

- 24 -

 

          (b) No suit, action, claim, proceeding or investigation before any Governmental Entity shall
have been commenced and be pending against any of the parties, or any of their respective
Affiliates, associates, officers or directors, seeking to prevent transactions contemplated by this
Agreement, including, without limitation, the sale of the Purchased Assets or asserting that the
sale of the Purchased Assets would be illegal or create liability for damages or which may have a
Material Adverse Effect on the Business or the Purchased Assets.

     8.4 Documents. This Agreement, the exhibits and schedules attached hereto, and any
other instruments of conveyance and transfer and all other documents to be delivered by Seller at
the Closing and all actions of Seller required by this Agreement and the exhibit agreements, or
incidental thereto, and all related matters, shall be in form and substance reasonably satisfactory
to Buyer and Buyer’s counsel and shall be in full force and effect.

     8.5 Governmental Filings. The parties shall have made any required filing with
Governmental Entities in connection with this Agreement and the exhibit agreements, and any
approvals related thereto shall have been obtained or any applicable waiting periods shall have
expired. If a proceeding or review process by a Governmental Entity is pending in which a decision
is expected, Buyer shall not be required to consummate the transactions contemplated by this
Agreement until such decision is reached or rendered, notwithstanding Buyer’s legal ability to
consummate the transactions contemplated by this Agreement prior to such decision being reached or
rendered.

     8.6 No Material Adverse Change. There shall have been no change that could have a
Material Adverse Effect on the Purchased Assets or the Business on the Closing Date as compared
with the date of this Agreement.

     8.7 Execution and Delivery of Asset Purchase Agreement, Escrow Agreements between Seller
and SiS-Cayman and Employee Retention Bonus Plan. Concurrently with the execution and delivery
of this Agreement, Seller and SiS-Cayman shall have executed and delivered the SiS-Cayman
Agreement. In addition, the parties hereto acknowledge and agree that SiS-Cayman, Buyer and
Chinatrust Commercial Bank (Taiwan) (“Escrow Agent”) shall use diligent efforts to
finalize, execute and deliver on or before February 28, 2007 that certain Escrow Agreement between
them (the “SiS-Cayman Escrow Agreement”), pursuant to which SiS-Cayman shall withhold from
the purchase price under the SiS-Cayman Agreement two million dollars ($2,000,000.00) and deposit
such amount into a designated escrow account (the “Escrow Fund”) from which any claims by
SiS-Cayman, Buyer or any of their respective Affiliates against Seller for any Damages (as defined
herein below in Section 10.2) shall be paid. In addition, the parties hereto acknowledge and agree
that SiS-Cayman, Buyer and Escrow Agent shall use diligent efforts to finalize, execute and deliver
that certain Escrow Bonus Agreement between them (the “Escrow Bonus Agreement”), pursuant
to which Seller shall set aside [*****] dollars ($[*****]) out of the purchase price to be received
by Seller under the SiS-Cayman Agreement and deposit such amount into a designated bonus escrow
account (the “Bonus Escrow Fund”) from which bonuses shall be paid to those Transferred
Employees who remain in the employment of Buyer or an Affiliate of Buyer or a designated
co-employer of either as of the first and second anniversaries of the Employment Date. In
addition, SiS-Cayman

 

 

and Seller shall have delivered the Employee Retention Bonus Plan attached as
an exhibit to the SiS-Cayman Agreement.

     8.8. Acceptance of Offers of Employment from Transferred Employees. Buyer shall have
received acceptances of offers of employment from at least [*****] of the [*****] and at least
[*****] of the [*****] prior to December 22, 2006.

     8.9 Legal Opinion. Buyer shall have received a legal opinion from Orrick, Herrington
& Sutcliffe, LLP, legal counsel to Seller, dated the Closing Date, in a form satisfactory to Buyer.

     8.10 Transition Services Agreement. SiS-Cayman and certain other Affiliates of Buyer
shall each have entered into a Transition Services Agreement with Seller in the form attached
hereto as Exhibit B, pursuant to which Seller shall provide certain “Transition
Services” (as defined in the Transition Service Agreement) to the indicated Affiliate of Buyer
for a period of up to twelve (12) months following the Closing at a price equal to Seller’s direct
cost to provide such Transition Services plus 5% or such other monthly amounts set forth therein.

9. Conditions to Seller’s Obligations

     The obligations of Seller under this Agreement are subject to the fulfillment, prior to or on
the Closing Date, of each of the following conditions, all or any of which may be waived in writing
by Seller, except as otherwise provided by law:

     9.1 Representations and Warranties True; Performance.

          (a) The representations and warranties of Buyer contained in this Agreement shall be true and
correct in all material respects as of the Closing Date with the same effect as though such
representations and warranties had been made or given again at and as of the Closing Date;

          (b) Buyer shall have performed and complied with all of its agreements, covenants and
conditions required by this Agreement to be performed or complied with by them prior to or on the
Closing Date;

          (c) Seller shall have received a certificate, dated as of the Closing Date, signed and
verified by an officer of Buyer on behalf of Buyer certifying to the matters set forth in Sections
9.1(a) and 9.1(b) above.

     9.2 No Proceeding or Litigation.

          (a) No preliminary or permanent injunction or other order shall have been issued by any
Governmental Entity, nor shall any statute, rule, regulation or executive order be promulgated or
enacted by any Governmental Entity which prevents the consummation of the transactions contemplated
by this Agreement.

 

**** Confidential Treatment Requested.

 

 

          (b) No suit, action, claim, proceeding or investigation before any Governmental Entity shall
have been commenced and be pending against any of the parties, or any of their respective
Affiliates, associates, officers or directors, seeking to prevent the sale of the Purchased Assets
or asserting that the sale of the Assets would be illegal or create liability for damages.

     9.3 Documents. This Agreement, any other instruments of conveyance and transfer and
all other documents to be delivered by Buyer to Seller at the Closing and all actions of Buyer
required by this Agreement or incidental thereto, and all related matters, shall be in form and
substance reasonably satisfactory to Seller and Seller’s counsel.

     9.4 Governmental Filings. The parties shall have made any filing required with
Governmental Entities, and any approvals shall have been obtained or any applicable waiting periods
shall have expired. If a proceeding or review process by a Governmental Entity is pending in which
a decision is expected, Seller shall not be required to consummate the transactions contemplated by
this Agreement until such decision is reached or rendered, notwithstanding Seller’s legal ability
to consummate the transactions contemplated by this Agreement prior to such decision being reached
or rendered.

10. Escrow and Indemnification

     10.1 Survival of Representations and Warranties. All covenants to be performed prior
to the Closing Date, and all representations and warranties in this Agreement, in the SiS Cayman
Agreement or in any instrument delivered pursuant hereto or thereto shall survive the consummation
of the transactions contemplated hereby and continue until the end of eighteen (18) months after
the Closing Date (the “Escrow Termination Date”); provided that if any claims for
indemnification have been asserted with respect to any such representations, warranties and
covenants prior to the Escrow Termination Date, the representations, warranties and covenants on
which any such claims are based shall continue in effect until final resolution of any claims, and
provided, further, that representations, warranties and covenants relating to Taxes
shall survive until 30 days after expiration of all applicable statutes of limitations relating to
such Taxes. All covenants to be performed after the Closing Date shall continue indefinitely.

     10.2 Indemnification. Subject to the limitations set forth in this Section 10, from and
after the Effective Time, Seller shall protect, defend, indemnify and hold harmless Buyer and
Buyer’s Affiliates, officers, directors, employees, representatives and agents (each of the
foregoing Persons is hereinafter referred to individually as an “Indemnified Person” and
collectively as “Indemnified Persons”) from and against any and all losses, costs, damages,
liabilities, fees (including without limitation attorneys’ fees) and expenses (collectively, the
“Damages”), that any of the Indemnified Persons incurs by reason of or in connection with
any claim, demand, action or cause of action alleging misrepresentation, breach of, or default in
connection with, any of the representations, warranties, covenants or agreements of the Seller
contained in this Agreement or in the SiS-Cayman Agreement, including any exhibits or schedules
attached hereto or thereto, known to Buyer prior to the Escrow Termination Date. Damages in each
case shall be net of the amount of any insurance proceeds and indemnity and contribution actually
recovered by Buyer. The Buyer and Seller agree to treat any

 

 

indemnification payment made pursuant to this Agreement or the SiS-Cayman Agreement as an
adjustment to the Purchase Price for federal, state and local income tax purposes.

     10.3 Damages Threshold. Buyer shall have the right to make claims for any Damages
experienced hereunder against the Escrow Fund established by SiS-Cayman and Seller pursuant to the
terms of the this Agreement, the SiS-Cayman Agreement and the SiS-Cayman Escrow Agreement.
Notwithstanding the foregoing, Buyer may not receive any amount of consideration (“Escrow
Consideration”) from the Escrow Fund unless and until a certificate or certificates signed by
an officer of Buyer (each, an “Officer’s Certificate”) identifying Damages in the aggregate
amount in excess of $[*****] (the “Escrow Threshold”) for claims under this Agreement
together with claims submitted by an officer of SiS-Cayman under the SiS-Cayman Agreement have been
delivered to the Escrow Agent and such amount is determined pursuant to this Section 10 to be
payable, in which case upon the Escrow Termination Date Buyer shall be entitled to receive Escrow
Consideration equal in value to the full amount of such Damages without deduction. In determining
the amount of any Damages attributable to a breach, any materiality standard contained in a
representation, warranty or covenant of Buyer shall be disregarded.

     10.4 Escrow Period. The Escrow Consideration shall be retained by the Escrow Agent
until the Escrow Termination Date. Subject to the last sentence of this Section 10.4, upon the
Escrow Termination Date, the Escrow Agent shall deliver to Buyer such amount of the Escrow
Consideration as shall have been determined by the parties to be payable to Buyer pursuant to
Officer’s Certificates delivered to Seller and Escrow Agent during the Escrow period in accordance
with Section 10.3 herein above, and the Escrow Agent shall deliver to Seller the remaining Escrow
Consideration; provided, however, that the amount of Escrow Consideration, which in the
reasonable judgment of Buyer, subject to the objection of the Escrow Agent and the subsequent
arbitration of the claim in the manner provided in the Escrow Agreement, is necessary to satisfy
any unsatisfied claims specified in any Officer’s Certificate delivered to the Escrow Agent prior
to the Escrow Termination Date with respect to facts and circumstances existing on or prior to the
Escrow Termination Date, shall remain in the possession of the Escrow Agent until such claims have
been resolved. As soon as all such claims have been resolved, any remaining Escrow Consideration
not required to satisfy such claims shall be distributed to Seller. Notwithstanding the foregoing,
any fees owed to the Escrow Agent and any taxes that may be payable (including taxes of the owner
of the Escrow Consideration) due to accrued interest on funds held by the Escrow Agent shall be
paid from the Escrow Fund prior to the final distribution of remaining Escrow Consideration to
Seller and all remaining accrued interest on the Escrow Consideration shall be paid to Buyer.

     10.5 Method of Asserting Claims. All claims for indemnification by the Buyer or any
other Indemnified Person pursuant to this Section 10 shall be made in accordance with the
provisions of the SiS-Cayman Escrow Agreement.

     10.6 Damages Limitation. Subject to Section 11.3 below and the following sentence, the
maximum liability of Seller to the Indemnified Persons taken together for all Damages arising with
respect to this Agreement and/or the SiS-Cayman Agreement shall be limited to $2,000,000.00.
Notwithstanding the foregoing the limitations of this Section 10.6 shall not apply

 

**** Confidential Treatment Requested.

 

 

to indemnification for breaches of the representations and warranties contained in Sections 4.2,
4.9(b), and 4.22, any breach of any covenant made by Seller hereunder or any Excluded Liability.

11. Termination.

     11.1 Termination of Agreement. This Agreement may be terminated at any time prior to
the Closing:

          (a) By mutual written consent of Buyer and Seller;

          (b) By either party, if the other party goes into liquidation, has an application or order
made for its winding up or dissolution, has a resolution passed or steps taken to pass a resolution
for its winding up or dissolution, becomes unable to pay its debts as and when they fall due, or
has a receiver, receiver and manager, administrator, liquidator, provisional liquidator, official
manager or administrator appointed to it or any of its assets; or

          (c) By Buyer or Seller if any Governmental Entity shall have issued an order, decree or
ruling or taken any other action restraining, enjoining or otherwise prohibiting the transactions
contemplated by this Agreement; or

          (d) By Buyer if the Closing does not occur by February 28, 2006.

     11.2 Procedure and Effect of Termination. In the event of termination of this
Agreement by any or all of the parties pursuant to Section 11.1, written notice shall be given to
each other party specifying the provision of Section 11.1, pursuant to which such termination is
made and shall become void and there shall be no liability on the part of Buyer or Seller (or their
respective officers, directors, partners or Affiliates), except as a result of any breach of this
Agreement by such party or to the extent such a party is entitled to indemnification under Section
10 of this Agreement.

     11.3 Break-Up Provision. In the event Seller or any Affiliate of Seller breaches
Section 6.6 hereof and such breach prevents the parties from consummating the transactions
contemplated hereunder, then Seller shall return the refundable deposit of $1,500,000.00 (the
“Deposit”) paid to Seller by Silicon Integrated Systems Corporation of Hsin-Chu, Taiwan, the sole
shareholder of Buyer (“Parent”), to Parent within five (5) Working Days of the earlier of the
Termination Date or the date on which Seller notifies Buyer that it does not intend to consummate
the Closing. If Seller fails to effect the Closing hereunder and has also received an Acquisition
Proposal, then Seller shall pay Buyer an additional amount equal to $1,500,000.00 within five (5)
Working Days of the earlier of the closing of the transaction contemplated by such Acquisition
Proposal, or the date on which Seller notifies Buyer that it does not intend to consummate the
Closing.

     11.4 Buyer Liability. All covenants to be performed by Buyer prior to the Closing
Date, and all representations and warranties of Buyer in this Agreement or in any instrument
delivered pursuant to this Agreement shall terminate as of the Closing Date and shall not survive
thereafter, provided however that the representation and warranty of Buyer contained in Section

 

 

5.2 shall survive indefinitely. After the parties have executed this Agreement but prior to the
Closing, if Buyer breaches any Buyer representation or warranty or covenant, or if Buyer
terminates the Agreement for any reason and fails to effect the Closing, Buyer’s maximum liability
to Seller and Seller’s Affiliates, and their respective officers, directors, employees,
representatives, agents and shareholders, under both this Agreement and the SiS-Cayman Agreement
shall not exceed the amount of the good faith fully refundable deposit of $1,500,000.00 previously
paid to Seller by Silicon Integrated Systems Corporation of Hsin-Chu, Taiwan, ROC, the sole
shareholder of Buyer (“Parent”), after execution by Seller and Parent of that certain
Letter of Intent dated December 7, 2006 regarding the transactions contemplated hereunder and
pursuant to the SiS-Cayman Agreement. Notwithstanding the foregoing the limitations of this
Section 11.4 shall not apply to Buyer’s liability for breach of the representation and warranty
contained in Section 5.2, any breach of any covenant made by Buyer which is to be performed after
the Closing hereunder or any Assumed Liability.

     12. Dispute Resolution.

     12.1 Required Negotiation. Subject to the rights of the parties set forth in Section
12(c) below, in case of any dispute between the parties relating to this Agreement, transfer of the
Assets, payment therefor, or other matters governed by the terms of this Agreement, Seller and
Buyer shall attempt in good faith to resolve such dispute for a period of 15 days after notice
thereof has been delivered by the party seeking relief to the other party or parties involved (the
“Negotiation Period”). Each party shall designate an executive who is knowledgeable about the
facts giving rise to the dispute, and the executives shall confer and seek to resolve the dispute
in a manner that is acceptable to both parties. If the executives should so agree during the
Negotiation Period, a memorandum setting forth such agreement shall be prepared and signed by the
parties and the matter shall be handled accordingly.

     12.2 Arbitration. If no such agreement has been reached by the end of the Negotiation
Period, any party may demand arbitration of the matter unless the amount of any claimed damages
from the dispute is at issue in pending litigation with a third party, in which event arbitration
shall not be commenced until such amount is ascertained by settlement or a non-appealable decision
of a court of competent jurisdiction or all the parties agree to arbitration; and in either such
event the matter shall be settled by arbitration conducted by a single arbitrator, selected by
mutual agreement of the parties or otherwise in accordance with the then prevailing rules of the
American Arbitration Association as adopted by the State of California. The arbitration shall be
conducted in Santa Clara County, California. The written decision of the arbitrator shall be
binding and conclusive upon the parties, and the parties shall be entitled to act in accordance
with such decision. The arbitrator shall award reimbursement to the prevailing party in the
arbitration of its reasonable expenses of the arbitration (including costs and reasonable
attorneys’ fees). The award of the arbitrator shall be the sole and exclusive monetary remedy of
the parties and shall be enforceable in any court of competent jurisdiction.

     12.3 Enforcement of Equitable Rights. Notwithstanding the foregoing, the parties
agree that irreparable damage would occur in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise breached. It is
accordingly agreed that the parties shall be entitled to seek injunctive relief or

 

 

other equitable remedies from any court of competent jurisdiction to prevent breaches of this
Agreement and to enforce specifically the terms and provisions of this Agreement, this being
in addition to any other remedy to which they are entitled at law or in equity subject to the terms
hereof.

13. Miscellaneous.

     13.1 Amendments and Waivers. Any term of this Agreement may be amended or waived with
the written consent of the parties or their respective successors and assigns. Any amendment or
waiver effected in accordance with this Section 12.1 shall be binding upon the parties and their
respective successors and assigns.

     13.2 Successors and Assigns. The terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the respective permitted successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

     13.3 Governing Law; Jurisdiction. This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be governed, construed
and interpreted in accordance with the laws of the State of California, without giving effect to
principles of conflicts of law. Each of the parties to this Agreement consents to the exclusive
jurisdiction and venue of the courts of the state and federal courts of Santa Clara County,
California.

     13.4 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall be deemed an original and all of which together shall constitute one instrument.

     13.5 Titles and Subtitles. The titles and subtitles used in this Agreement are used
for convenience only and are not to be considered in construing or interpreting this Agreement.

     13.6 Notices. Any notice required or permitted by this Agreement shall be in writing
and shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight
delivery service or confirmed facsimile, or forty-eight (48) hours after being deposited in the
regular mail as certified or registered mail (airmail if sent internationally) with postage
prepaid, if such notice is addressed to the party to be notified at such party’s address or
facsimile number as set forth below, or as subsequently modified by written notice.

     13.7 Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such provision in good faith,
in order to maintain the economic position enjoyed by each party as close as possible to that under
the provision rendered unenforceable. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded
from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such

 

 

provision were so excluded and (iii) the balance of the Agreement shall be enforceable in
accordance with its terms.

     13.8 Entire Agreement. This Agreement and the documents referred to herein are the
product of both of the parties hereto, and constitute the entire agreement between such parties
pertaining to the subject matter hereof and thereof, and merge all prior negotiations and drafts of
the parties with regard to the transactions contemplated herein and therein. Any and all other
written or oral agreements existing between the parties hereto regarding such transactions are
expressly canceled.

     13.9 Advice of Legal Counsel. Each party acknowledges and represents that, in
executing this Agreement, it has had the opportunity to seek advice as to its legal rights from
legal counsel and that the person signing on its behalf has read and understood all of the terms
and provisions of this Agreement. This Agreement shall not be construed against any party by
reason of the drafting or preparation thereof.

     13.10 No Assignment. This Agreement may not be assigned by Seller without the express
written consent of Buyer.

     13.11 Fees and Expenses. Each party shall bear its own fees and expenses (including
the fees and expenses of its financial, legal, accounting and other advisors) incurred in the
negotiation, documentation and delivery of the Agreement and the transactions contemplated hereby,
whether or not the Closing occurs.

[Signature pages follow]

 

 

     This Agreement has been duly executed and delivered by the duly authorized officers of Seller
and Buyer as of the date first above written.

	 	 	 	 	 	 	 
	 	 	SILICON INTEGRATED SYSTEMS CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	 

	 	 
	 

	 	Facsimile:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	ESS TECHNOLOGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Facsimile:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	ESS TECHNOLOGY INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Facsimile:	 	 	 	 
	 

	 	 	 	 

	 	 

 

 

List of Exhibits and Schedules

	 	 	 
	Exhibit A

	 	Bill of Sale
	Exhibit B

	 	Form of Transition Services Agreement
	 
	 	 
	Schedule 1.1(i)

	 	Governmental Authorizations
	Schedule 2.1(a)

	 	Purchased Assets (including all Tangible Personal Property used in the Business)
	Schedule 2.1(b)

	 	Contracts
	Schedule 2.1(d)

	 	Permits
	Schedule 2.2

	 	Excluded Assets
	Schedule 4.6

	 	Required Consents
	Schedule 4.9(b)

	 	Restrictions on Purchased Assets
	Schedule 4.12

	 	Seller Employees
	 
	 	 
	Seller Disclosure Schedule
	Seller Counsel Legal Opinion

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