Document:

exv10w1

Exhibit 10.1

EXECUTION VERSION

STOCK PURCHASE AGREEMENT

by and among

VP ACQUISITION HOLDINGS, INC.,

THE STOCKHOLDERS OF VP ACQUISITION HOLDINGS, INC.,

THE OPTIONHOLDERS OF VP ACQUISITION HOLDINGS, INC.,

AMERICAN CAPITAL, LTD.,

as Securityholder Representative,

and

NORDSON CORPORATION

Dated as of July 15, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 DEFINITIONS
	 	 	1	 
	Section 1.01. Definitions
	 	 	1	 
	Section 1.02. Cross-References to Other Defined Terms
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 2 PURCHASE AND SALE
	 	 	8	 
	Section 2.01. Estimated Purchase Price
	 	 	8	 
	Section 2.02. Purchase and Sale of the Shares; Payment of Options
	 	 	9	 
	Section 2.03. The Closing
	 	 	9	 
	Section 2.04. Post-Closing Adjustment
	 	 	10	 
	Section 2.05. Reserve Account
	 	 	12	 
	 
	 	 	 	 
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	13	 
	Section 3.01. Organization and Qualification
	 	 	13	 
	Section 3.02. Capitalization; Subsidiaries; Securities Owned
	 	 	13	 
	Section 3.03. Authority of the Company
	 	 	14	 
	Section 3.04. Compliance with Laws
	 	 	15	 
	Section 3.05. Advisory and Other Fees
	 	 	15	 
	Section 3.06. Taxes
	 	 	15	 
	Section 3.07. Officers and Directors; Books and Records
	 	 	16	 
	Section 3.08. Litigation
	 	 	16	 
	Section 3.09. Financial Statements
	 	 	17	 
	Section 3.10. Transactions with Affiliates
	 	 	17	 
	Section 3.11. Real Properties
	 	 	18	 
	Section 3.12. Absence of Material Adverse Effect
	 	 	18	 
	Section 3.13. Absence of Certain Changes
	 	 	18	 
	Section 3.14. Tangible Personal Property
	 	 	18	 
	Section 3.15. Intellectual Property
	 	 	19	 
	Section 3.16. Contracts
	 	 	19	 
	Section 3.17. Insurance
	 	 	21	 
	Section 3.18. Permits
	 	 	21	 
	Section 3.19. Employee Benefit Plans
	 	 	21	 
	Section 3.20. Employees; Labor Matters
	 	 	23	 
	Section 3.21. Environmental Matters
	 	 	23	 
	Section 3.22. Employee Relations
	 	 	23	 
	Section 3.23. Accounts Receivable
	 	 	24	 
	Section 3.24. Bank Accounts
	 	 	24	 
	Section 3.25. Foreign Corrupt Practices Act
	 	 	24	 
	Section 3.26. No Other Representations and Warranties
	 	 	24	 

i

 

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE SECURITYHOLDERS
	 	 	25	 
	Section 4.01. Organizational Authorization
	 	 	25	 
	Section 4.02. Governmental Authorization
	 	 	25	 
	Section 4.03. Noncontravention
	 	 	25	 
	Section 4.04. Ownership of Securities
	 	 	25	 
	Section 4.05. Advisory and Other Fees
	 	 	25	 
	Section 4.06. No Action
	 	 	25	 
	Section 4.07. No Other Representations and Warranties
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF THE BUYER
	 	 	26	 
	Section 5.01. Existence and Power
	 	 	26	 
	Section 5.02. Organizational Authorization
	 	 	26	 
	Section 5.03. Governmental Authorization
	 	 	26	 
	Section 5.04. Noncontravention
	 	 	27	 
	Section 5.05. Financing
	 	 	27	 
	Section 5.06. Purchase for Investment
	 	 	27	 
	Section 5.07. Actions and Proceedings
	 	 	27	 
	Section 5.08. Finder’s Fees
	 	 	27	 
	Section 5.09. Solvency
	 	 	27	 
	Section 5.10. Acknowledgment by the Buyer
	 	 	27	 
	Section 5.11. No Knowledge of Misrepresentations or Omissions; No Reliance
	 	 	29	 
	Section 5.12. No Other Representations and Warranties
	 	 	29	 
	 
	 	 	 	 
	ARTICLE 6 COVENANTS OF THE COMPANY AND THE SECURITYHOLDERS
	 	 	29	 
	Section 6.01. Conduct of the Company and the Subsidiaries
	 	 	29	 
	Section 6.02. Access
	 	 	31	 
	Section 6.03. Subsequent Actions
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 7 COVENANTS OF THE BUYER
	 	 	32	 
	Section 7.01. Confidentiality
	 	 	32	 
	Section 7.02. Access
	 	 	32	 
	Section 7.03. Notification
	 	 	33	 
	Section 7.04. Director and Officer Liability, Indemnification and Insurance
	 	 	33	 
	Section 7.05. Regulatory Filings
	 	 	34	 
	Section 7.06. Contact with Employees, Customers and Suppliers
	 	 	34	 

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	 	 	Page	 
	ARTICLE 8 ADDITIONAL COVENANTS OF THE PARTIES
	 	 	35	 
	Section 8.01. Reasonable Best Efforts; Further Assurances
	 	 	35	 
	Section 8.02. Further Cooperation
	 	 	35	 
	Section 8.03. Public Announcements
	 	 	35	 
	Section 8.04. Tax Matters
	 	 	35	 
	Section 8.05. Disclosure Generally
	 	 	36	 
	Section 8.06. Conflicts and Privilege
	 	 	36	 
	Section 8.07. Antitrust Filings
	 	 	37	 
	Section 8.08. WARN
	 	 	37	 
	 
	 	 	 	 
	ARTICLE 9 CONDITIONS TO CLOSING
	 	 	38	 
	Section 9.01. Conditions to the Buyer’s Obligations
	 	 	38	 
	Section 9.02. Conditions to the Company and the Securityholders’ Obligations
	 	 	39	 
	 
	 	 	 	 
	ARTICLE 10 TERMINATION
	 	 	40	 
	Section 10.01. Termination
	 	 	40	 
	Section 10.02. Effect of Termination
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 11 INDEMNIFICATION/SECURITYHOLDER REPRESENTATIVE
	 	 	41	 
	Section 11.01. Survival Period
	 	 	41	 
	Section 11.02. Indemnification
	 	 	41	 
	Section 11.03. Limitation of Recourse
	 	 	44	 
	Section 11.04. Securityholder Representative
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 12 MISCELLANEOUS
	 	 	47	 
	Section 12.01. Notices
	 	 	47	 
	Section 12.02. Amendments and Waivers
	 	 	48	 
	Section 12.03. Construction; Severability
	 	 	49	 
	Section 12.04. Expenses
	 	 	49	 
	Section 12.05. Successors and Assigns
	 	 	49	 
	Section 12.06. Governing Law
	 	 	49	 
	Section 12.07. Arbitration
	 	 	50	 
	Section 12.08. Forum
	 	 	51	 
	Section 12.09. Waiver of Jury Trial
	 	 	51	 
	Section 12.10. Specific Performance
	 	 	51	 
	Section 12.11. Prevailing Party
	 	 	52	 
	Section 12.12. Counterparts; Third Party Beneficiaries
	 	 	52	 
	Section 12.13. Entire Agreement
	 	 	52	 
	Section 12.14. Termination of Agreements
	 	 	52	 

iii

 

INDEX OF EXHIBITS

	 	 	 

	Exhibit A

	 	Initial Securityholder Allocations
	 
	 	 
	Exhibit B

	 	Transaction Expenses
	 
	 	 
	Exhibit C

	 	Securityholders Party to Joinder Agreements
	 
	 	 
	Exhibit D

	 	Joinder Agreement

INDEX OF SCHEDULES

	 	 	 	 	 

	Schedule 1.01

	 	—
	 	Persons with Knowledge
	Schedule 2.01(f)

	 	—
	 	Net Working Capital
	Schedule 2.03(b)(v)

	 	—
	 	Indebtedness to be Repaid
	Schedule 9.01(c)

	 	—
	 	Required Consents
	Schedule 9.01(d)

	 	—
	 	Governmental Approvals
	Disclosure Schedules
	 	 	 	 

iv

 

STOCK PURCHASE AGREEMENT

          THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of July 15, 2011, by and
among VP Acquisition Holdings, Inc., a Delaware corporation (the “Company”), the Persons
identified as “Stockholders” of the Company listed on the signature pages hereto (each, a
“Stockholder,” and collectively, the “Stockholders”), the Persons identified as
“Optionholders” on the signature pages hereto (each, an “Optionholder,” and collectively,
the “Optionholders”), and the Persons listed on Exhibit C hereto and which have, or
by the Closing Date will have, joined in this Agreement pursuant to a Joinder Agreement (the
“Joinder Agreements”) in the form attached hereto as Exhibit D (together with the
Stockholders and the Optionholders sometimes referred to herein as the “Securityholders,”
and each, a “Securityholder”), ACAS, in its capacity as the Securityholder Representative
(the “Securityholder Representative”), and Nordson Corporation, an Ohio corporation (the
“Buyer”). Unless otherwise provided, capitalized terms used herein are defined in
Article 1 below.

PRELIMINARY STATEMENTS

          A. The Stockholders collectively own all of the issued and outstanding capital stock of the
Company, which as of the date hereof consists of 36,040 shares of Common Stock (the
“Shares”).

          B. The Optionholders own all of the Options, which as of the date hereof consists of Options
to acquire up to 3,289 shares of Common Stock on the terms and conditions provided in the Stock
Incentive Plan and the agreements evidencing such Options.

          C. Upon the terms and subject to the conditions set forth herein, the Buyer desires to acquire
from the Stockholders, and the Stockholders desire to sell to the Buyer, all of the issued and
outstanding Shares as of the Closing.

STATEMENT OF AGREEMENT

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

ARTICLE 1

DEFINITIONS

     Section 1.01. Definitions. The following terms, as used herein, have the following meanings:

          “ACAS” means American Capital, Ltd.

          “ACEI” means American Capital Equity I, LLC.

          “ACEII” means American Capital Equity II, LP.

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          “Affiliate” means (except as otherwise specifically defined herein), as to any Person,
any other Person which, directly or indirectly, controls, or is controlled by, or is under common
control with, such Person. As used in this definition, “control” (including, with its correlative
meanings, “controlled by” and “under common control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of management or policies of a Person,
whether through the ownership of securities or partnership or other ownership interests, by
contract or otherwise. Notwithstanding the foregoing, no Person of which ACAS, ACEI or ACEII owns
debt or equity interests, other than the Company and its Subsidiaries, shall be deemed an Affiliate
of the Company or any Subsidiary for purposes of this Agreement.

          “Antitrust Approval Fees” means all fees payable by the Company, any Subsidiary and
the Securityholders to any Governmental Authority in connection with the Antitrust Approvals to the
extent not paid by the Buyer pursuant to Section 8.07(a).

          “Antitrust Approvals” means each notification of the transactions contemplated hereby
filed with the appropriate Governmental Authority, and the approval of the transactions
contemplated hereby by such Governmental Authority and/or the expiration of any applicable waiting
period related thereto, in each case as required pursuant to such Antitrust Law.

          “Antitrust Law” means any applicable antitrust and competition Law, including the HSR
Act.

          “Business Day” means any day excluding Saturday, Sunday and any day on which banking
institutions located in the State of Colorado are authorized or required to close.

          “Cap” means $12,500,000.

          “Cash” means cash, cash equivalents and marketable securities.

          “Cash Amount” means the bank balance of all Cash held by the Company or any Subsidiary
as of the close of business on the Closing Date plus an amount equal to the aggregate exercise
price the Optionholders would have paid if the Optionholders had exercised all Options immediately
prior to the Closing, before giving effect to the transactions contemplated hereby, plus any
deposits posted by the Company or any Subsidiary as reserves, escrows, security deposits, cash
collateral or other similar amounts, as all are to be classified in accordance with GAAP.

          “Code” means the Internal Revenue Code of 1986, as amended, and any reference to any
particular Code section shall be interpreted to include any revision of or successor to that
section regardless of how numbered or classified.

          “Common Stock” means the Company’s common stock, par value $0.001 per share.

          “Employee Benefit Plan” means each retirement, welfare, severance, incentive or bonus,
deferred compensation, cafeteria or Section 125, profit sharing, vacation or paid-time-off, stock
purchase, stock option or equity incentive plan, program, agreement or arrangement, and any other
material employee benefit plan, program or arrangement that is maintained or

2

 

contributed to by the
Company or any ERISA Affiliate, other than (i) statutorily-mandated plans or programs and (ii) any
agreement or arrangement for future benefits contained or described in this Agreement or in an
agreement, document or instrument to be executed and delivered by the Company or any Subsidiary
pursuant to or as contemplated in this Agreement.

          “ERISA Affiliate” means any Subsidiary of the Company and any trade or business
(whether or not incorporated) that is part of the same controlled group, or under common control
with, or part of an affiliated service group that includes the Company or any Subsidiary within the
meaning of Section 414(b), (c), (m), or (o) of the Code.

          “Fully Diluted Number of Shares” means the sum of the total number of shares of Common
Stock issued and outstanding immediately prior to the Closing held by the Stockholders, plus the
total number of shares of Common Stock that the Optionholders could have purchased if the
Optionholders had exercised their Options in full immediately prior to the Closing.

          “GAAP” means United States generally accepted accounting principles, consistently
applied in accordance with the Latest Balance Sheet.

          “HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as
amended, and the rules and regulations promulgated thereunder.

          “Indebtedness” means, with respect to any Person at any date, without duplication, all
obligations of such Person:

     (a) under capitalized leases;

     (b) for borrowed money or in respect of loans or advances;

     (c) for notes payable and drafts accepted representing extensions of credit whether or
not representing obligations for borrowed money;

     (d) for the face amount of any letter of credit issued as to which that Person is
otherwise liable for reimbursement of drawings;

     (e) for the direct or indirect guarantee, endorsement, co-making, discounting with
recourse of sale with recourse by such Person of the obligation of another Person;

     (f) for all obligations of such Person in respect of any exchange traded or over the
counter derivative transaction, including, without limitation, any interest rate agreement
and currency agreement, whether entered into for hedging or speculative purposes;

     (g) for all unpaid or deferred income Tax liabilities;

     (h) with regard to the Company, the amount of any unpaid management fees payable to
ACAS or its Affiliates; and

3

 

     (i) for all accrued interest, prepayment premiums or penalties and fees on the
foregoing which would be payable if such obligations were paid in full as of such date.

For the avoidance of doubt, Indebtedness shall not include (i) any guarantees, letters of credit,
performance bonds, bid bonds or other sureties of any kind or nature issued by or on behalf of the
Company or any Subsidiary in connection with any customer contracts, proposals or otherwise, (ii)
any trade payables accumulated in the ordinary course of business of the Company or any Subsidiary,
or (iii) payables or loans of any kind or nature between the Company and its Subsidiaries or
between Subsidiaries.

          “Indebtedness Amount” means the amount required to repay all outstanding Indebtedness
of the Company and any Subsidiary as of the close of business on the date immediately preceding the
Closing Date. The foregoing shall be determined on a consolidated basis for the Company and its
Subsidiaries and in accordance with GAAP (except as otherwise provided in the definition of
Indebtedness), consistent with the preparation of the Latest Balance Sheet.

          “Knowledge” when used in the phrase “to the Knowledge of the Company” or similar
phrases means, and shall be limited to, the actual knowledge of the individuals listed on
Schedule 1.01 hereto.

          “Lazard” means Lazard Middle Market LLC.

          “Material Adverse Effect” means a material adverse effect which has occurred to the
financial condition or results of operations of the Company and the Subsidiaries on a consolidated
basis; provided, that for purposes of this Agreement, a Material Adverse Effect
shall not include the effect of (a) changes to the industry or markets in which the business of the
Company or any Subsidiary operates that are not unique to such business, (b) the announcement or
disclosure of the transactions contemplated herein, (c) general economic, regulatory or political
conditions or changes, (d) changes in or the condition of financial, banking or securities markets
(including any disruption thereof and any decline in the price of any security or any market
index), (e) military action or any act of terrorism, (f) changes in Law or GAAP after the date
hereof, (g) compliance with the terms of this Agreement or any request of the Buyer, (h) actions
taken or to be taken in connection with the sale of the Shares, (i) a flood, hurricane, earthquake
or other natural disaster, or (j) the failure of the Company or any Subsidiary to meet or achieve
the results set forth in any internal projection, or (k) any matter set forth in Schedule
3.06, Schedule 3.08, Schedule 3.12, items 9, 10 or 11 of Schedule 3.19,
or Schedule 3.21. The Buyer acknowledges that there could be a disruption to the Company or
any Subsidiary’s business as a result of the execution of this Agreement, the announcement by the
Buyer of its intention to purchase the Company or the announcement of the Stockholders of their
intention to sell the Company, and the consummation of the transactions contemplated hereby, and
the Buyer agrees that such disruptions do not and shall not constitute a Material Adverse Effect.

          “Net Working Capital” means, subject to the exceptions and qualifications, if any, set
forth on Schedule 2.01(f) hereto, the excess of (a) the Company’s current assets (excluding
Cash, Tax assets and the Payable Amount), over (b) the Company’s current liabilities (excluding Tax
liabilities and Indebtedness).

4

 

          “Net Working Capital Amount” means the Net Working Capital of the Company as of the
close of business on the date immediately preceding the Closing Date.

          “Options” shall mean all options to purchase Common Stock of the Company validly
issued under the Stock Incentive Plan which are vested and exercisable (or will become vested and
exercisable as a result of the transactions contemplated hereby) and which are outstanding
immediately prior to the Closing.

          “Payables Amount” means the aggregate amount of all accounts payable owed by the Buyer
or any of its Affiliates to the Company or any of its Subsidiaries as of the Closing Date.

          “Permitted Liens” means any (i) Liens in respect of Taxes and other government charges
and assessments the validity of which is being contested in good faith by appropriate proceedings
or Liens in respect of Taxes and other government charges and assessments not yet due and payable
or which can be paid currently with no penalty; (ii) landlords’, lessors’, warehousemens’,
employees’, materialmens’, mechanics’, carriers’, workmen’s, repairmen’s, statutorily imposed or
other like Liens arising or incurred in the ordinary course of business for amounts not yet due and
payable; (iii) Liens arising under original purchase price conditional sales contracts and
equipment leases with third parties that are contracts entered into in connection with the Company
or any Subsidiary; (iv) limitations on the rights of the Company or any Subsidiary under any
Contract or Real Property Lease that are expressly set forth in such contract or lease; (v) survey
exceptions, imperfections of title, Liens or other title matters affecting any tangible asset owned
by the Company or any Subsidiary that would not, individually or in the aggregate, impair the
occupancy or current use of the tangible asset they encumber; (vi) Liens and other similar
restrictions of record identified in any title reports obtained by or made available to Buyer;
(vii) with respect to the Leased Real Property, zoning, building codes and other land use Laws
regulating the use or occupancy of such Leased Real Property or the activities conducted thereon
that are imposed by any Governmental Authority having jurisdiction over such Leased Real Property
and do not materially interfere with the present use of the Leased Real Property; (viii) any and
all service contracts and agreements affecting any tangible asset owned by the Company or any
Subsidiary; (ix) Liens securing Indebtedness to be repaid and released in connection with the
Closing; (x) with respect to Shares or Options, restrictions on transfer under applicable
securities Laws, the Stock Incentive Plan, or the Stockholders’ Agreement; (xi) Liens that secure
obligations reflected as liabilities in the Financial Statements (or the existence of which is
referred to in the notes accompanying the Audited Financial Statements); (xii) deposits or pledges
to secure the payment of workers’ compensation, unemployment insurance, social security benefits or
obligations arising under similar laws, or to secure the performance of public or statutory
obligations, surety or appeal bonds, and other obligations of a like nature; (xiii) Liens which are
being contested in good faith solely to the extent of any reserve included in the calculation of
Net Working Capital hereunder; and (xiv) Liens which, individually or in the aggregate, do not
materially detract from the value, or materially interfere with the present use, of the Company’s
tangible personal property.

          “Person” means an individual, corporation, partnership, limited liability company,
association, trust or other entity or organization, including a government or political subdivision
or any agency or instrumentality thereof.

5

 

          “Reference Date” means October 14, 2005.

          “Securityholder Allocation Percentage” means (A) with respect to each Stockholder, the
quotient determined by dividing (i) the number of Shares held by such Stockholder immediately prior
to the Closing by (ii) the Fully Diluted Number of Shares, and (B) with respect to each
Optionholder, the quotient determined by dividing (i) the number of shares of Common Stock such
Optionholder could have purchased if such Optionholder had exercised such Optionholder’s Options in
full immediately prior to the Closing by (ii) the Fully Diluted Number of Shares. The initial
Securityholder Allocation Percentage for each Securityholder is set forth on Exhibit A
hereto, which exhibit may be updated and delivered to the Buyer in connection with the deliveries
to be made pursuant to Section 2.01. Notwithstanding the foregoing, the Securityholder
Representative shall have the right and authority to equitably adjust the Securityholder Allocation
Percentages of the Securityholders with respect to the amounts to be released to the
Securityholders from the Reserve Account in connection with the payment of Losses resulting from
breaches of a particular Securityholder’s representations, warranties, covenants or agreements
hereunder.

          “Stock Incentive Plan” shall mean the Company’s Stock Incentive Plan dated December
31, 2008.

          “Stockholders’ Agreement” means that certain Stockholders’ Agreement dated as of
October 14, 2005, by and among the Company and the Stockholders party thereto, as amended.

          “Subsidiary” means any entity, the securities or other ownership interests of which
are directly or indirectly owned by the Company.

          “Target Working Capital Amount” means $3,747,145.33.

          “Tax” means any federal, state, local or foreign income, gross receipts, capital
stock, franchise, profits, withholding, social security, unemployment, disability, real property,
ad valorem/personal property, stamp, excise, occupation, sales, use, transfer, value added,
alternative minimum, estimated or other tax, assessment, duty, fee, levy or other governmental
charge, including any interest, penalty or addition thereto.

          “Tax Returns” means any return, report, information return or other document
(including schedules or any related or supporting information) filed or required to be filed with
any Governmental Authority or other authority in connection with the determination, assessment or
collection of any Tax or the administration of any Laws relating to any Tax.

          “Transaction Expenses” means the fees, costs or expenses incurred by any
Securityholder, the Company or any Subsidiary in connection with the sale of the Shares or the
cancellation of the Options and set forth on Exhibit B hereto (as the same may be updated
on or prior to the Closing Date), including all fees and expenses of Lazard but excluding Antitrust
Approval Fees.

          “Transaction Tax Benefit Amount” means the amount obtained by multiplying (A) the sum
of (i) all of the Optionholder Closing Payment Amounts for all Optionholders, (ii)

6

 

payments under
deferred compensation arrangements and (iii) any other deductible Transaction Expenses by (B)
39.6%.

          “Treasury Regulations” means the regulations promulgated under the Code. Any
reference in this Agreement to Treasury Regulations are intended to refer to such regulations and
to such regulations as they may be amended and to any corresponding provision or provisions of
succeeding Law.

     Section 1.02. Cross-References to Other Defined Terms. Each term listed below is defined in
the Section of this Agreement listed opposite such term:

	 	 	 
	Term	 	Section
	Agreement

	 	Preface
	AP

	 	Section 8.06
	Approvals

	 	Section 3.18
	Assignee

	 	Section 12.05
	Audited Financial Statements

	 	Section 3.09(a)(i)
	Buyer

	 	Preface
	Buyer’s Representatives

	 	Section 7.01
	Closing

	 	Section 2.03(a)
	Closing Date

	 	Section 2.03(a)
	Collateral Source

	 	Section 11.02(e)
	Company

	 	Preface
	Confidentiality Agreement

	 	Section 7.01
	Contracts

	 	Section 3.16
	Draft Computation

	 	Section 2.04(a)
	Environmental Requirement(s)

	 	Section 3.21
	ERISA

	 	Section 3.19(b)
	Estimated Purchase Price

	 	Section 2.01
	Financial Statements

	 	Section 3.09(a)(ii)
	Firm

	 	Section 2.04(a)
	Fundamental Representations

	 	Section 11.01
	Governmental Authority

	 	Section 3.04
	Indemnified Representative

	 	Section 7.04
	Indemnitee

	 	Section 11.02(d)
	Indemnitors

	 	Section 11.02(d)
	Initial Reserve Amount

	 	Section 2.05
	Joinder Agreements

	 	Preface
	Judicial Action

	 	Section 12.08
	Latest Balance Sheet

	 	Section 3.09(a)(ii)
	Laws

	 	Section 3.04
	Leased Real Property; Leased Real Properties

	 	Section 3.11(b)
	Liens

	 	Section 3.14
	Loss; Losses

	 	Section 11.02
	Objection Notice

	 	Section 2.04(a)
	Optionholder; Optionholders

	 	Preface

7

 

	 	 	 
	Term	 	Section
	Optionholder Closing Payment Amount

	 	Section 2.02(b)
	Panel

	 	Section 12.07(b)
	PB

	 	Section 2.03(a)
	Purchase Price

	 	Section 2.01
	Real Property Lease; Real Property Leases

	 	Section 3.11(a)
	Reserve Account

	 	Section 2.05
	Schedule; Schedules

	 	Article 3 Preamble
	Securityholder; Securityholders

	 	Preface
	Securityholder Representative

	 	Section 11.04(a)
	Securityholder Working Capital Payment

	 	Section 2.04(b)(ii)
	Shares

	 	Preliminary Statement A
	Stockholder; Stockholders

	 	Preface
	Stockholder Closing Payment Amount

	 	Section 2.02(a)
	Survival Period

	 	Section 11.01
	Tax and ERISA Representations

	 	Section 11.01
	Tax Benefit

	 	Section 11.02(e)
	Terminating Agreements

	 	Section 12.14
	Third Party Claim

	 	Section 11.02(d)
	Unaudited Financial Statements

	 	Section 3.09(a)(ii)
	Updated Schedules

	 	Section 6.03

ARTICLE 2

PURCHASE AND SALE

     Section 2.01. Estimated Purchase Price. At least two (2) Business Days prior to the Closing
Date, the Company shall deliver to the Buyer the Company’s good faith estimate, on a reasonable
basis using the Company’s then available financial information, of the Purchase Price (such
estimate is referred to as the “Estimated Purchase Price”) and the initial Securityholder
Allocation Percentage for each Securityholder. The Estimated Purchase Price, and each component
thereof, shall be determined on a consolidated basis using the same accounting methods, policies,
principles, practices and procedures, with consistent classifications, judgments and estimation
methodology, as were used in preparation of the Latest Balance Sheet or, to the extent applicable,
in accordance with any changes to such accounting methods, policies, principles, practices and
procedures which are documented in the Company’s books and records prior to the Closing. The
amount of the Estimated Purchase Price payable to each Securityholder is set forth on Exhibit
A hereto, which exhibit may be updated and delivered to the Buyer in connection with the
deliveries to be made pursuant to this Section 2.01. For purposes of this Agreement,
“Purchase Price” means an amount equal to:

          (a) $250,000,000,

          (b) plus the Cash Amount,

          (c) plus the Payables Amount,

          (d) minus the Indebtedness Amount,

8

 

          (e) plus the Transaction Tax Benefit Amount,

          (f) (i) plus the excess of the Net Working Capital Amount over the Target Working Capital
Amount, if any, or (ii) minus the excess of the Target Working Capital Amount over the Net Working
Capital Amount,

          (g) minus the amount of the Transaction Expenses,

          (h) plus the amount of the Antitrust Approval Fees.

     Section 2.02. Purchase and Sale of the Shares; Payment of Options.

          (a) Purchase and Sale of Shares. As of the Closing, upon the terms and subject to the
conditions set forth in this Agreement, each Stockholder shall sell, assign, transfer and convey to
the Buyer, and the Buyer shall purchase and acquire from each such Stockholder, all of the Shares
held by such Stockholder. Subject to Section 2.04, the purchase price to be paid by the
Buyer to each Stockholder for the Shares held by such Stockholder shall consist of a payment at the
Closing, by wire transfer of immediately available funds to the account of such Stockholder set
forth on Exhibit A hereto (as the same may be updated prior to Closing), of an amount of
cash equal to the result of (A) the Estimated Purchase Price multiplied by such Stockholder’s
Securityholder Allocation Percentage, minus (C) the Initial Reserve Amount multiplied by such
Stockholder’s Securityholder Allocation Percentage (with respect to a Stockholder, such
Stockholder’s “Stockholder Closing Payment Amount”).

          (b) Cash Out of the Options. As of the Closing and simultaneously with the payment to
the Stockholders of the Stockholder Closing Payment Amounts, upon the terms and subject to the
conditions set forth in this Agreement (including Section 2.04), the Buyer shall pay, or
irrevocably cause the Company to pay (by providing funds to the Company or otherwise), to each
Optionholder, in cancellation of such Optionholder’s Options, an amount in cash equal to the excess
of (i) the result of (A) the Estimated Purchase Price multiplied by such Optionholder’s
Securityholder Allocation Percentage, minus (B) the Initial Reserve Amount multiplied by
such Optionholder’s Securityholder Allocation Percentage, over (ii) the aggregate exercise price
such Optionholder would have paid if such Optionholder had exercised all such Options immediately
prior to the Closing (with respect to an Optionholder, such Optionholder’s “Optionholder
Closing Payment Amount”), less all applicable withholding Taxes. Each Optionholder agrees that
he or she will not exercise his or her Option at or prior to the Closing, and that upon the payment
by the Company or the Buyer to such Optionholder of the Optionholder Closing Payment Amount, less
all applicable withholding Taxes, the Options held by such Optionholder will be cancelled and of no
further force and effect.

     Section 2.03. The Closing.

          (a) The closing of the transactions contemplated by this Agreement (the “Closing”)
shall take place at the offices of Patton Boggs LLP (“PB”) in Dallas, Texas, at 10:00 a.m.
on the third (3rd) Business Day following full satisfaction or due waiver of all of the
closing conditions set forth in Article 9 hereof (other than those to be satisfied at the
Closing) or on such other date as is mutually agreeable to the Buyer and Securityholder
Representative. The date of the Closing is referred to herein as the “Closing Date.”

9

 

          (b) Upon the terms and subject to the conditions set forth in this Agreement, the parties
hereto shall consummate the following transactions as of the Closing:

          (i) each Stockholder shall deliver to the Buyer all of the stock certificates
representing the Shares held by such Stockholder duly endorsed for transfer or accompanied
by duly executed stock powers (or other form of assignment or transfer) or a duly executed
lost stock affidavit in a form reasonably acceptable to the Buyer and the Company;

          (ii) the Buyer shall deliver to each Stockholder, by wire transfer of immediately
available funds to the account designated by such Stockholder, cash in an amount equal to
such Stockholder’s Stockholder Closing Payment Amount;

          (iii) the Buyer shall pay to each such Optionholder, by wire transfer of immediately
available funds to the account designated by such Optionholder, an amount equal to such
Optionholder’s Optionholder Closing Payment Amount, less all applicable withholding Taxes;

          (iv) the Buyer shall deliver to the Securityholder Representative, for the benefit of
the Securityholders in accordance with their respective Securityholder Allocation
Percentages, by wire transfer of immediately available funds to the Reserve Account, cash in
an amount equal to the Initial Reserve Amount;

          (v) the Buyer shall pay on behalf of the Company and the Subsidiaries, all Indebtedness
of the Company and the Subsidiaries set forth on Schedule 2.03(b)(v) hereto in
accordance with the payoff letters and other payment instructions provided by the Company or
the Securityholder Representative;

          (vi) the Buyer shall pay on behalf of the Company and the Securityholders, the
Transaction Expenses set forth on Exhibit B hereto; and

          (vii) the Buyer, the Company and the Securityholders shall make such other deliveries
as are required by and in accordance with Article 9 hereof.

     Section 2.04. Post-Closing Adjustment.

          (a) Post-Closing Determination. Within forty-five (45) days after the Closing Date,
the Buyer and its auditors shall prepare and deliver to the Securityholder Representative (i) the
Buyer’s determinations of the Cash Amount, the Indebtedness Amount, and the Net Working Capital
Amount, and (ii) the Buyer’s calculation of the Purchase Price (collectively, the “Draft
Computation”). The Draft Computation shall be prepared and the Cash Amount, the Indebtedness
Amount, and the Net Working Capital Amount shall be determined on a consolidated basis using the
same accounting methods, policies, principles, practices and procedures, with consistent
classifications, judgments and estimation methodology, as were used in preparation of the Latest
Balance Sheet or, to the extent applicable, in accordance with any changes to such accounting
methods, policies, principles, practices and procedures which are documented in the Company’s books
and records prior to the Closing, and shall not include any changes in assets or liabilities as a
result of purchase or other non-cash accounting adjustments

10

 

or other changes arising from or
resulting as a consequence of the transactions contemplated hereby. The parties agree that the
purpose of preparing the Draft Computation and determining the Cash Amount, the Indebtedness
Amount, and the Net Working Capital Amount and the related purchase price adjustment contemplated
by this Section 2.04 is to measure the amount of Cash and Indebtedness and changes in Net
Working Capital, and such processes are not intended to permit the introduction of different
judgments, accounting methods, policies, principles, practices, procedures, classifications or
estimation methodologies for the purpose of preparing the Draft Computation or determining Cash,
Indebtedness or Net Working Capital. The Company and its auditors will make available to the Buyer
and its auditors, employees and advisors all records and work papers used in preparing the
Estimated Purchase Price. The Buyer and its auditors will make available to the Securityholder
Representative and its auditors, employees and advisors all records and work papers used in
preparing the Draft Computation and will prepare and deliver to the Securityholder Representative a
detailed analysis of the changes behind any material variance(s) between the Buyer’s determination
of the Cash Amount, the Indebtedness Amount and the Net Working Capital Amount, and the
corresponding estimates of such amounts as determined by the Company pursuant to Section
2.01 hereof. If the Securityholder Representative disagrees with any aspect of the Draft
Computation, the Securityholder Representative may, within forty-five (45) days after receipt of
the Draft Computation, deliver a notice (an “Objection Notice”) to the Buyer setting forth
the Securityholder Representative’s determination of the Cash Amount, the Indebtedness Amount,
and/or the Net Working Capital Amount and the Securityholder Representative’s calculation of the
Purchase Price. If the Securityholder Representative does not deliver an Objection Notice to the
Buyer within forty-five (45) days after receipt of the Draft Computation, then the parties hereto
will be deemed to have agreed to the Draft Computation and the components of such Draft Computation
shall be deemed to be finally determined as set forth therein. The Buyer and the Securityholder
Representative shall use reasonable efforts to resolve any disagreements as to the Draft
Computation and the Objection Notice, but if they do not obtain a final resolution within
forty-five (45) days after the Buyer has received the Objection Notice, the Buyer and the
Securityholder Representative shall jointly retain Grant Thornton LLP or such other accounting firm
acceptable to the Buyer and the Securityholder Representative (the “Firm”) to resolve any
remaining disagreements. The Buyer and the Securityholder Representative shall direct the Firm to
render a determination within thirty (30) days after its retention and the Buyer, the
Securityholder Representative and their respective agents shall cooperate with the Firm during its
engagement. The Firm will act as an expert and not as an arbitrator in conducting its analysis and
may consider only those items and amounts in the Draft Computation or Objection Notice which the
Buyer and the Securityholder Representative are unable to resolve. In resolving any disputed item,
the Firm may not assign a value to any item greater than the greatest value for such item claimed
by either party or less than the smallest value for such item claimed by either party. The Firm’s
determination shall be based solely on written submissions by the Buyer and the Securityholder
Representative (i.e., not on independent review) and on the definitions included herein. The
determination of the Firm shall be conclusive and binding upon the Buyer, the Securityholder
Representative and the Securityholders. Until the Firm makes its determination, the costs and
expenses of the Firm shall be borne equally by the Buyer, on the one hand, and the Securityholder
Representative (on behalf of the Securityholders in accordance with their respective Securityholder
Allocation Percentages), on the other hand; provided, that when the Firm makes its
determination, any costs and expenses (including costs and expenses

11

 

previously advanced) shall be
allocated between the Securityholder Representative (on behalf of the Securityholders in accordance
with their respective Securityholder Allocation Percentages), on the one hand, and the Buyer, on
the other hand, based upon the percentage that the portion of the contested amount not awarded to
each party bears to the amount actually contested by such party. For example, if the
Securityholder Representative claims the Net Working Capital Amount is $1,000 greater than the
amount determined by the Buyer, and the Buyer contests only $500 of the amount claimed by the
Securityholder Representative, and if the Firm ultimately resolves the dispute by awarding the
Securityholders $300 of the $500 contested, then the costs and expenses of the Firm will be
allocated 60% (i.e., 300 ÷ 500) to the Buyer and 40% (i.e., 200 ÷ 500) to the Securityholder
Representative (on behalf of the Securityholders in accordance with their respective Securityholder
Allocation Percentages).

          (b) Post-Closing Adjustment.

          (i) Payment by the Buyer. If the Purchase Price as finally determined pursuant
to Section 2.04(a) exceeds the Estimated Purchase Price by more than $250,000, then
within five (5) Business Days after such final determination, the Buyer shall pay to the
Securityholder Representative (on behalf of the Securityholders in accordance with their
respective Securityholder Allocation Percentages), by wire transfer or delivery of other
immediately available funds, an amount equal to the amount by which such excess exceeds
$250,000; provided, however, that in lieu of any distribution of
such amount to the Securityholders, the Securityholder Representative, in its sole
discretion, may retain all or any portion of such amounts as part of the Reserve Account.

          (ii) Payment by the Securityholders. If the Purchase Price as finally
determined pursuant to Section 2.04(a) is less than the Estimated Purchase Price,
then within five (5) Business Days after the determination thereof, the Securityholder
Representative shall pay to the Buyer from the Reserve Account an amount equal to the amount
by which such excess exceeds $250,000 (the amount of such excess, the “Securityholder
Working Capital Payment”) and, in the event that the Reserve Account is insufficient to
pay the full amount of the Securityholder Working Capital Payment, then each Securityholder
shall promptly pay to Buyer by wire transfer or delivery of other immediately available
funds, an amount equal to (i) the unpaid portion of the Securityholder Working Capital
Payment multiplied by (ii) such Securityholder’s Securityholder Allocation
Percentage.

     Section 2.05. Reserve Account. At Closing, the Securityholder Representative shall retain
from the Estimated Purchase Price the sum of One Million Dollars ($1,000,000) (the “Initial
Reserve Amount”) for deposit into a bank account controlled by the Securityholder
Representative (together with any amount retained by the Securityholder Representative pursuant to
Section 2.04(b)(i), the “Reserve Account”). All amounts on deposit in the Reserve
Account, including any earnings thereon, shall be available to the Securityholder Representative to
cover costs and expenses incurred by the Securityholder Representative in the performance of its
obligations as Securityholder Representative, including, without limitation, costs and expenses, if
any, incurred by the Securityholder Representative (i) in resolving any adjustments pursuant to
Section 2.04, (ii) in defending any indemnification claims brought under Article 11
hereof, and (iii) in paying any amounts (including fees, costs and expenses) otherwise payable by
the

12

 

Securityholders to the Buyer or the Securityholder Representative pursuant to the terms hereof.
Amounts in the Reserve Account may also be applied by the Securityholder Representative as
permitted in accordance with Section 11.04.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

          The Company represents and warrants to the Buyer that each statement contained in this
Article 3 is correct and complete, except as set forth in the Schedules accompanying this
Agreement or in any Updated Schedule delivered pursuant to Section 6.03 (each a
“Schedule” and, collectively, the “Schedules”). Capitalized terms used in the
Schedules and not otherwise defined therein shall have the meanings ascribed to such terms in this
Agreement.

     Section 3.01. Organization and Qualification.

          (a) The Company and each of the Subsidiaries are corporations duly organized, validly existing
and, where applicable, in good standing under the Laws of their respective jurisdictions of
organization. The Company and each of its Subsidiaries have full corporate power and authority to
own or lease their respective properties and to conduct their businesses in the manner and in the
places where such properties are owned or leased and where such businesses are currently conducted,
except where the failure to have such power and authority would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The copies of the Company’s
and the Subsidiaries’ respective certificates or articles of incorporation and bylaws, as each have
been amended to date and heretofore made available to the Buyer and/or its agents, are complete and
correct, and no amendments thereto are pending.

          (b) The Company and each of the Subsidiaries are duly licensed and qualified to do business
and in good standing in each jurisdiction in which the properties owned or leased by it or the
operation of its business makes such licensing or qualification to do business necessary, except
where the failure to be so licensed or qualified would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     Section 3.02. Capitalization; Subsidiaries; Securities Owned.

          (a) The authorized capital stock of the Company consists of 1,000,000 shares of Common Stock,
36,040 shares of which are issued and outstanding as of the date hereof. Schedule 3.02
hereto sets forth (i) all of the holders of the Company’s issued and outstanding Shares and
Options, and (ii) the number of Shares and Options held by each such holder. All of the Shares
have been duly authorized, are validly issued, fully paid and nonassessable, and are neither
subject to, nor were they issued in violation of, any preemptive rights. The Company is the sole
owner, directly or indirectly, of 100% of the outstanding capital stock of each of the Subsidiaries
which are listed on Schedule 3.02 hereto. The ownership and capitalization of each of the
Subsidiaries is as set forth on Schedule 3.02 hereto. Other than the shares the Company
owns in the Subsidiaries, the Company does not own any capital stock or other equity securities
issued by any other Person (other than Cash). Except for this Agreement, the Options, as
contemplated by the Stock Incentive Plan, the rights and restrictions set forth in the
Stockholders’ Agreement or as set forth on Schedule 3.02 hereto, there are no outstanding
or

13

 

authorized options, warrants, rights, contracts, rights to subscribe, conversion rights,
preemptive rights, or other agreements or commitments to which the Company or any Subsidiary is a
party or which are binding upon the Company or any Subsidiary providing for the issuance,
disposition or acquisition of any shares of capital stock of the Company or any Subsidiary. Except
as set forth on Schedule 3.02, the outstanding capital stock of each Subsidiary is free and
clear of any Lien, except for Permitted Liens.

          (b) Except as set forth on Schedule 3.02:

          (i) there are no outstanding or authorized stock appreciation, phantom stock, profit
participation or similar rights with respect to the Company or any Subsidiary;

          (ii) except as set forth in the Stockholders’ Agreement, there are no voting trusts,
proxies or other written agreements or understandings with respect to the voting of the
capital stock of the Company or any Subsidiary;

          (iii) there are no dividends which have accrued or been declared but are unpaid on any
of the Shares or the capital stock of any Subsidiary; and

          (iv) except as set forth in the Stockholders’ Agreement, there are no shareholder or
similar agreements which affect or restrict the voting rights or right to transfer any of
the Shares or the capital stock of any Subsidiary, and there are no registration rights or
similar agreements with respect to the Company or any Subsidiary in force or effect.

     Section 3.03. Authority of the Company.

          (a) The Company has the full right, power and authority to enter into this Agreement and each
agreement, document and instrument to be executed and delivered by it pursuant to or as
contemplated by this Agreement and to carry out the transactions contemplated hereby and thereby.
The execution and delivery of this Agreement and the performance of the Company’s obligations
hereunder have been duly authorized by all necessary corporate action on the part of the Company.
This Agreement and each agreement, document and instrument to be executed and delivered by the
Company pursuant to this Agreement constitute, or will when executed and delivered constitute,
valid and binding obligations of the Company, enforceable in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws
affecting creditors’ rights generally, and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in equity).

          (b) The execution, delivery and performance by the Company of this Agreement and each such
agreement, document and instrument contemplated by this Agreement to which it is a party:

          (i) do not and will not violate any provision of the certificate of incorporation or
bylaws of the Company or the equivalent governing documents of any Subsidiary;

14

 

          (ii) subject to the Antitrust Approvals, do not and will not violate any Laws of the
United States, or any state or other jurisdiction applicable to the Company or any
Subsidiary, or require the Company to obtain any Approval, consent or waiver of, or make any
filing with, any Person (including any Governmental Authority) that has not been obtained or
made, which violation or failure to obtain or make would, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect; and

          (iii) do not and will not result in a breach of, constitute a default under, accelerate
any obligation under, or give rise to a right of termination of any indenture, loan or
credit agreement, or any other agreement, contract, instrument, mortgage, deed of trust,
lien, lease, permit, authorization, order, writ, judgment, injunction, decree, determination
or arbitration award, whether written or oral, to which the Company or any Subsidiary is a
party or by which the property of the Company or any Subsidiary is bound, except where any
of the foregoing would not, individually or in the aggregate, reasonably be expected to have
a Material Adverse Effect or except as otherwise set forth on Schedule 3.03(b)(iii)
hereto.

     Section 3.04. Compliance with Laws. Except as set forth on Schedule 3.04 hereto, and
except with respect to the subject matter of the representations and warranties set forth in
Section 3.06 (Taxes), Section 3.15 (Intellectual Property), Section 3.18
(Permits), Section 3.19 (Employee Benefit Plans), Section 3.21 (Environmental
Matters), and Section 3.22 (Employee Relations), the Company and each of the Subsidiaries
are in material compliance with all applicable statutes, ordinances, orders, rules and regulations
(“Laws”) promulgated by any federal, state, territory, municipal or other governmental
authority (each, a “Governmental Authority”), which are necessary for the operation of the
business of the Company or such Subsidiary as presently conducted.

     Section 3.05. Advisory and Other Fees. Neither the Company nor any of the Subsidiaries has
incurred or shall become liable for any advisory fee, broker’s commission or finder’s fee relating
to or in connection with the transactions contemplated by this Agreement, other than fees payable
to Lazard and ACAS, which fees shall be paid as provided in Section 12.04, and other than
the Transaction Expenses.

     Section 3.06. Taxes. Except as set forth on Schedule 3.06 hereto:

          (a) (i) since the Reference Date, all United States federal income Tax Returns of or with
respect to the Company and the Subsidiaries required by Law to be filed have been timely filed
(after giving effect to any applicable extensions granted) and all other material Tax Returns of or
with respect to the Company and the Subsidiaries required by applicable federal, foreign, state,
local or other Law to be filed have been timely filed (after giving effect to any applicable
extensions granted);

          (ii) since the Reference Date, the Company and each of the Subsidiaries have timely paid
or caused to be paid as of the date hereof all Taxes shown as due on the Tax Returns
referred to in Section 3.06(a)(i), except to the extent such Taxes are being
contested in good faith by the Company or a Subsidiary or are properly reserved for on the
books or records of the Company or such Subsidiary; and

15

 

          (iii) since the Reference Date, there has not been any audit of any Tax Return filed by
or with respect to the Company or any Subsidiary for which the applicable statute of
limitations has not expired; no audit of any such Tax Return of or including the Company or
any Subsidiary is in progress; and neither the Company nor any Subsidiary has been notified
in writing by any Governmental Authority that any audit is contemplated or pending. Since
the Reference Date, no written claim has been made by any Governmental Authority in a
jurisdiction where the Company or any Subsidiary does not file Tax Returns that the Company
or such Subsidiary is or may be subject to taxation by that jurisdiction.

          (b) Neither the Company nor any Subsidiary is a party to, bound by or has any
obligation under any agreement relating to allocating or sharing the payment of, or liability for,
Taxes or has any liability for Taxes of any Person other than members of the affiliated group,
within the meaning of Section 1504(a) of the Code, filing consolidated federal income tax returns
of which the Company is the common parent under Treasury Regulation § 1.1502-6 (or a similar
provision of state, local or foreign Law), as a transferee or successor, by contract or otherwise.

          (c) No closing agreement pursuant to Section 7121 of the Code or any similar provision of any
state, local or foreign Law has been entered into by or with respect to the Company or any
Subsidiary. Neither the Company nor any Subsidiary has agreed to, or is required to make any
adjustment for, any period after the Closing Date pursuant to Section 481(a) of the Code by reason
of any change in any accounting method. There is no application pending with any Governmental
Authority requesting permission for any such change in any accounting method of the Company or any
Subsidiary and the Internal Revenue Service has not proposed in writing any such adjustment or
change in accounting method.

     Section 3.07. Officers and Directors; Books and Records.

          (a) Schedule 3.07(a) hereto sets forth the name and title of each officer and director
of the Company and each Subsidiary.

          (b) The copies of the records of the Company and the Subsidiaries, as made available by the
Company to the Buyer and/or its agents, are true and complete copies of the originals of such
documents.

     Section 3.08. Litigation. Schedule 3.08 hereto sets forth each continuing action,
suit, investigation and other proceeding pending or, to the Company’s Knowledge, threatened against
the Company or any of the Subsidiaries, at law or in equity, or before or by any Governmental
Authority (including any action, suit, investigation or proceeding (i) regarding the existence of a
defect in the manufacture, production, distribution or sale of any products made or sold by or on
behalf of the Company or any Subsidiary, or (ii) against or relating to any Employee Benefit Plan),
other than workers’ compensation claims and routine claims for benefits under the Company’s
Employee Benefit Plans, which would not reasonably be expected to have a Material Adverse Effect,
and any action, suit, investigation or proceeding that is reasonably expected to be covered by
insurance. Except as set forth on Schedule 3.08, neither the Company nor any

16

 

Subsidiary is
a party to any judgment, order or decree of any court, administration agency, commission or other
Governmental Authority.

     Section 3.09. Financial Statements.

          (a) The Company has delivered to the Buyer the following financial statements, attached as
Schedule 3.09(a) hereto:

          (i) audited consolidated balance sheet of the Company and the Subsidiaries as of
December 31, 2010 and audited consolidated statements of operations, stockholders’ equity,
and cash flows for the fiscal year then ended (collectively, the “Audited Financial
Statements”); and

          (ii) unaudited consolidated balance sheets of the Company and the Subsidiaries as of
June 30, 2011 (the “Latest Balance Sheet”), and the related statements of operations
and cash flows for the fiscal year and the six (6) months then ended (collectively, the
“Unaudited Financial Statements” and, together with the Audited Financial
Statements, the “Financial Statements”).

          (b) The Audited Financial Statements have been prepared in accordance with GAAP applied
consistently during the periods covered thereby, and present fairly in all material respects the
financial condition of the relevant entities at the dates of said statements and the results of
their operations and cash flows for the periods covered thereby. The Unaudited Financial
Statements have been prepared in accordance with GAAP applied consistently during the period
covered thereby, and present fairly in all material respects the financial condition of the Company
and the Subsidiaries at the date of such statements and the results of their operations and cash
flows for the period covered thereby, except that they do not contain the materials and disclosures
to be found in notes to financial statements prepared in accordance with GAAP, nor do they reflect
year-end adjustments.

          (c) Except as set forth on Schedule 3.09(c) hereto, neither the Company nor any
Subsidiary has any liabilities that would be required to be reflected on a balance sheet prepared
in accordance with GAAP, except for (i) liabilities reflected or reserved against on the Latest
Balance Sheet (including all notes thereto); (ii) liabilities incurred in the ordinary course of
business since the date of the Latest Balance Sheet; (iii) liabilities incurred in connection with
the transactions contemplated hereby; (iv) liabilities arising under Contracts or other matters
otherwise set forth in the Schedules hereto; and (iv) the Transaction Expenses.

     Section 3.10. Transactions with Affiliates. Except (i) for intra-company transactions amongst
the Company and the Subsidiaries, (ii) transactions, agreements, contracts or understandings
between ACAS, ACEI or ACEII and the Company or any Subsidiary or which otherwise relate to the
purchase, transfer or voting of securities, in each case, which will be terminated as of the
Closing, (iii) the Company’s or any Subsidiary’s organizational documents, (iv) as set forth on
Schedule 3.10 hereto, and (v) to the extent reflected in the Financial Statements, since
the date of the Latest Balance Sheet there have been no material transactions, contracts,
understandings or agreements of any kind between the Company or any Subsidiary and any Person which
is an Affiliate of the Company or such Subsidiary.

17

 

     Section 3.11. Real Properties.

          (a) The Company owns no real property.

          (b) Schedule 3.11(b) hereto sets forth each lease or other agreement under which the
Company or any Subsidiary leases or has rights to use any material real property owned by a Person
other than the Company or a Subsidiary (the “Real Property Leases” and, each individually,
a “Real Property Lease”). The Real Property Leases are in full force and effect and (i)
the Company or the applicable Subsidiary, as the case may be, has not defaulted thereunder and (ii)
to the Knowledge of the Company, no event has occurred that with notice or lapse of time, or both,
would constitute a default by the Company or the applicable Subsidiary, as the case may be, which
would reasonably be expected to result in a termination of the applicable Real Property Lease.
True and complete copies of the Real Property Leases have been made available to the Buyer and/or
its agents by the Company. Except as set forth on Schedule 3.11(b) hereto, the Company or
a Subsidiary has a valid and subsisting leasehold interest in all the real property which is the
subject of each of the respective Real Property Leases set forth on Schedule 3.11(b) hereto
(individually, the “Leased Real Property” and, collectively, the “Leased Real
Properties”).

          (c) To the Knowledge of the Company, no material permit, license or certificate of occupancy
pertaining to the leasing or operation of any Leased Real Property, other than those which are
transferable with such property, is required by any Governmental Authority.

     Section 3.12. Absence of Material Adverse Effect. Except as set forth on
Schedule 3.12 hereto, since the date of the Latest Balance Sheet, there has not been any
Material Adverse Effect.

     Section 3.13. Absence of Certain Changes. Except as set forth on Schedule 3.13
hereto, or as contemplated by this Agreement, the Company and each Subsidiary have complied in all
material respects with the covenants and restrictions set forth in Section 6.01 hereof to
the same extent as if this Agreement had been executed on, and had been in effect since, the date
of the Latest Balance Sheet.

     Section 3.14. Tangible Personal Property. Except as set forth on Schedule 3.14
hereto, (a) the Company or a Subsidiary has valid title to or a valid license or leasehold interest
in all of the material items of tangible personal property reflected on the Latest Balance Sheet,
except as sold or disposed of subsequent to the date thereof in the ordinary course of business
consistent with past practices, and (b) all such tangible personal property (other than licensed or
leased tangible property) is owned or, in the case of licensed or leased tangible personal
property, the Company or the applicable Subsidiary has a valid license or leasehold interest in
such tangible personal property, in each case free and clear of all liens, encumbrances, contracts
and security interests (collectively, “Liens”), except for Permitted Liens. Except as set
forth on Schedule 3.14 hereto, to the Knowledge of the Company, the facilities, plants,
machinery and equipment of the Company and the Subsidiaries are in good working order and
condition, ordinary wear and tear excepted and subject to routine maintenance, and are fit for the
purpose for which they are currently being used.

18

 

     Section 3.15. Intellectual Property. Schedule 3.15 hereto sets forth all patents,
trademark registrations, service mark registrations, trade names, domain name registrations,
copyright registrations, and all applications for any of the foregoing, that are material to the
business of the Company and its Subsidiaries and that are owned by the Company or any Subsidiary.
To the Knowledge of the Company, no intellectual property is owned by a third party that is
necessary for the operation of the Company’s business (other than such intellectual property
currently licensed by the Company or one of its Subsidiaries). Except as set forth on Schedule
3.15 hereto, since the Reference Date, neither the Company nor any Subsidiary has received any
written notice of infringement of or conflict with asserted rights of others with respect to any
know-how, trade secrets, patents, trademarks, trade names, brand names and copyrights that are
owned or used by, or licensed to, the Company or any Subsidiary. Except as set forth on
Schedule 3.15 hereto, the Company does not have Knowledge of any material infringement or
misappropriation by the Company of any third party’s material intellectual property. Except as set
forth on Schedule 3.15 hereto, the Company does not have Knowledge of any material
infringement or misappropriation by any third party of the material intellectual property owned by
the Company.

     Section 3.16. Contracts. Except for contracts, commitments, plans, agreements and licenses
listed on Schedule 3.16 hereto (true and complete copies of which or, with respect to oral
Contracts, true and correct written summaries of which, in each case, together with all amendments,
supplements or other modifications thereto have been made available to the Buyer and/or its agents)
(in each case, whether oral or written, the “Contracts”), and except for purchase orders
entered into in the ordinary course of business, neither the Company nor any Subsidiary is a party
to or subject to:

          (a) any plan or contract providing for bonuses, stock, options, stock purchases, profit
sharing, collective bargaining or the like (other than the Options and the Stock Incentive Plan) or
any contract or agreement with any labor union (other than the plans listed on Schedule
3.19 hereto);

          (b) any employment contract or contract for services which requires the payment of more than
$150,000 annually in total cash compensation, which is not terminable on sixty (60) or fewer days
notice by the Company or a Subsidiary without liability for any material penalty or severance
payment;

          (c) any contract or agreement for the purchase of any commodity, material or equipment in
excess of $150,000;

          (d) any other contracts or agreements creating any obligation of the Company or any Subsidiary
of more than $150,000 annually with respect to any such contract;

          (e) any contract or agreement requiring the purchase of all or substantially all of its
requirements of a particular product from a supplier, except any contract or agreement relating to
the purchase of inventory in the ordinary course of business;

19

 

          (f) any contract or agreement that by its terms does not terminate or is not terminable by the
Company or a Subsidiary within twelve (12) months after the date hereof without payment of a
penalty of $150,000 or more;

          (g) any contract containing covenants materially limiting the freedom of the Company or any
Subsidiary to compete in any line of business or with any Person;

          (h) any contract or agreement for the purchase of any fixed asset for a price in excess of
$150,000;

          (i) any partnership, joint venture or other similar contract or agreement;

          (j) any material contract or agreement providing for the license of patents, trademarks,
service marks, trade names or copyrights between the Company or any Subsidiary and any third party;

          (k) any agreement concerning confidentiality, except for (i) such agreements entered into in
connection with transactions or communications with third parties in the ordinary course of
business, (ii) such agreements by the Company or its agents or representatives with third parties
in connection with any proposed sale, financing or similar transaction of the Company or its
Subsidiaries, including the transactions contemplated hereby and whether similar to the
Confidentiality Agreement or otherwise, and (iii) such agreements entered into with employees of
the Company or any Subsidiary in the ordinary course of business;

          (l) any agreement in which a Securityholder, or an Affiliate of any Securityholder, is a
party, other than employment, stock option or other employee benefit agreement;

          (m) any material sales, marketing, distributorship, agency or representative agreements where
the counter-party to such agreement has the right or power to bind the Company or any Subsidiary;

          (n) any agreements with respect to reorganizations, mergers or acquisitions of capital stock
or business assets of any Person since January 1, 2006;

          (o) any power of attorney granted by the Company or any Subsidiary that is currently effective
and outstanding and vests in any Person decision-making authority or the right or power to bind the
Company or any Subsidiary;

          (p) any agreements, notes, contracts or other documents under which the Company or any
Subsidiary has created, incurred, assumed or guaranteed any Indebtedness, or under which it has
created a Lien on any of its assets; and

          (q) any agreement requiring the payment of any royalty.

                All Contracts are valid and in full force and effect and constitute legal, valid and binding
obligations of the Company or the applicable Subsidiary and, to the Knowledge of the Company, the
other parties thereto, and are enforceable against the Company or such Subsidiary in accordance
with their respective terms, subject to applicable bankruptcy, insolvency,

20

 

reorganization,
moratorium and similar Laws affecting creditors’ rights generally, and subject, as to
enforceability, to general principles of equity (regardless of whether enforcement is sought in a
proceeding at law or in equity). To the Knowledge of the Company, neither the Company nor any
Subsidiary is in default in complying with any material provisions thereof, nor has the Company or
any Subsidiary received written notice of any such default, and, to the Knowledge of the Company,
no condition or event or facts exist that, with notice, lapse of time or both, would constitute a
default thereof on the part of the Company or any Subsidiary.

     Section 3.17. Insurance. The Company has made available to Buyer true and complete copies of
all policies of insurance and fidelity bonds to which the Company or any Subsidiary is a party or
under which the company or any Subsidiary is covered. All policies of insurance or fidelity bonds
maintained by the Company or any Subsidiary are in full force and effect. All premiums due on any
policy of insurance or fidelity bonds have been paid to the extent such premiums are due and
payable and the Company and its Subsidiaries have otherwise performed all of their obligations
under such policies.

     Section 3.18. Permits. Except as set forth on Schedule 3.18 hereto, (i) the Company
and each of the Subsidiaries have obtained all permits, registrations, licenses, franchises,
certifications and other approvals (collectively, the “Approvals”) from Governmental
Authorities (other than Approvals subject to the representations and warranties in Section
3.11 (Real Property), Section 3.15 (Intellectual Property) and Section 3.21
(Environmental Matters)) necessary for the conduct of its business as presently conducted, except
where the failure to obtain such Approvals would not reasonably be expected to have a Material
Adverse Effect, (ii) all such Approvals are valid and in full force and effect and (iii) none of
such Approvals is subject to termination by its terms as a result of the execution of this
Agreement by the Company or by the consummation of the transactions contemplated by this Agreement.

     Section 3.19. Employee Benefit Plans. All material Employee Benefit Plans maintained by the
Company or any Subsidiary or to which the Company (or any Subsidiary) is obligated to contribute
are listed on Schedule 3.19 hereto. Except as set forth on Schedule 3.19 hereto:

          (a) all such Employee Benefit Plans have been made available to the Buyer and/or its agents;

          (b) all such Employee Benefit Plans have been maintained, funded and administered in
compliance in all material respects with all applicable Laws, including without limitation, the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the Code, except
where such noncompliance would not reasonably be expected to result in a material liability;

          (c) since the Reference Date, no such Employee Benefit Plan, or any trustee, administrator,
employee or “fiduciary” thereof has, to the Knowledge of the Company, engaged in any breach of
fiduciary responsibility or any “prohibited transaction” (as such term is defined in Section 406 of
ERISA or Section 4975 of the Code) to which Section 406 of ERISA or Section 4975 of the Code
applies and which could subject any such Employee Benefit Plan, trustee, administrator, employee or
fiduciary thereof, or any party dealing with any such

21

 

Employee Benefit Plan, to a material Tax or
penalty on prohibited transactions imposed by Section 4975 of the Code or Section 502 of ERISA;

          (d) no Employee Benefit Plan is a defined benefit pension plan or has within the six (6) years
preceding the date of this Agreement been subject to the minimum funding requirements of Section
412 of the Code or Title IV of ERISA;

          (e) neither the Company nor any ERISA Affiliate has or has ever had any obligation to
contribute to any “multiemployer plan” within the meaning of Section 3(37) of ERISA;

          (f) each Employee Benefit Plan intended to qualify under Section 401 of the Code has received
a favorable determination letter from the Internal Revenue Service that such Employee Benefit Plan
is a “qualified plan” under Section 401(a) of the Code; the related trusts are exempt from tax
under Section 501(a) of the Code; and, to the Knowledge of the Company, no facts or circumstances
exist that would be reasonably likely to jeopardize the qualification of such Employee Benefit
Plan;

          (g) with respect to the Employee Benefit Plans, to the Knowledge of the Company, all required
contributions have been made or properly accrued on the Financial Statements;

          (h) neither the Company nor any ERISA Affiliate has liability under any Employee Benefit Plan,
or otherwise, to provide medical or death benefits with respect to current or former employees of
the Company or any Subsidiaries beyond their termination of employment (other than coverage
mandated by Law), and there are no reserve assets, surplus or prepaid premiums under any such
Employee Benefit Plan;

          (i) the consummation of the transactions contemplated by this Agreement will not, other than
pursuant to the Employee Benefit Plans listed on Schedule 3.19 hereto or pursuant to
actions taken by the Buyer, result in any material liability to any present or former employee or
independent contractor, including, but not limited to, as a result of the Worker Adjustment
Retraining and Notification Act;

          (j) except as set forth in Schedule 3.19, neither the execution and delivery of this
Agreement nor the consummation of the transactions contemplated hereby will (i) result in any
payment becoming due to any current or former officer, partner, contractor or employee of Company
or an ERISA Affiliate, (ii) increase any benefits otherwise payable under any Employee Benefit
Plan, (iii) increase any benefits otherwise payable under any Employee Benefit Plan or (iv) result
in the acceleration of the time of payment or vesting of any such benefits under any such Employee
Benefit Plan; and

          (k) no amount required to be paid or payable to or with respect to any employee or other
service provider of Company or an ERISA Affiliate in connection with the transactions contemplated
hereby (either solely as a result thereof or as a result of such transactions in conjunction with
any other event) could be an “excess parachute payment” within the meaning of Section 280G of the
Code. Each Employee Benefit Plan that constitutes a nonqualified deferred compensation plan for
purposes of Section 409A of the Code has been operated in compliance in form and substance with
Section 409A of the Code and all applicable guidance from the IRS.

22

 

     Section 3.20. Employees; Labor Matters. Neither the Company nor any Subsidiary is delinquent
in any material payments to any of their respective employees for any wages, salaries, commissions,
bonuses, severance, termination pay or other direct compensation for any services performed for it
to the date hereof or amounts required to be reimbursed to such employees. Except as set forth on
Schedule 3.20 hereto, neither the Company nor any Subsidiary has any written policy,
practice, plan or program of paying severance pay or any written form of severance compensation in
connection with the termination of employment. Except as set forth on Schedule 3.20
hereto, to the Knowledge of the Company, there are no material grievances, complaints or charges
that have been filed against the Company or any Subsidiary under any dispute resolution procedure
(including, but not limited to, any proceedings under any dispute resolution procedure under any
collective bargaining agreement) that have not been dismissed. Except as set forth on Schedule
3.20 hereto, no collective bargaining agreements are in effect or are currently being
negotiated by the Company or any Subsidiary.

     Section 3.21. Environmental Matters. Except as set forth on Schedule 3.21 hereto,
since the Reference Date, the Company and the Subsidiaries have obtained and possessed all material
Approvals required under federal, state and local Laws concerning pollution or protection of the
environment, in each case in effect on or prior to the date hereof, including all such Laws
relating to the emission, discharge, release or threatened release of any petroleum, pollutants,
environmental contaminants or hazardous or toxic materials, substances or wastes into air, surface
water, groundwater or lands (“Environmental Requirements”), except where the failure to
obtain or possess such Approvals would not reasonably be expected to have a Material Adverse
Effect. Except as set forth on Schedule 3.21 hereto, to the Knowledge of the Company, the
Company and each Subsidiary are in compliance with all terms and conditions of such Approvals and
are also in compliance with all other Environmental Requirements, except for such failures to
comply that would not reasonably be expected to have a Material Adverse Effect. Except as set
forth on Schedule 3.21 hereto, since the Reference Date, neither the Company nor any
Subsidiary has received any written notice from any Governmental Authority or other Person
asserting or alleging that the Company or any Subsidiary has failed in any material respect to
comply with any Environmental Requirements, or that the Company or any Subsidiary is liable in any
material respect for any material injury or material damages to any Person or property because of
the release or threatened release of any petroleum, pollutants, environmental contaminants,
hazardous or toxic materials, substances or wastes except as would not reasonably be expected to
have a Material Adverse Effect. The Company has made available to the Buyer all material
environmental audits and reports that are in the Company’s possession and that relate to the
Company’s or any Subsidiary’s past or current properties, facilities or operations.
Notwithstanding any implication to the contrary contained herein, this Section 3.21
constitutes the sole and exclusive representations and warranties of the Company with respect to
Environmental Requirements and all other environmental matters.

     Section 3.22. Employee Relations. Except as set forth on Schedule 3.22 hereto, none
of the employees of the Company or the Subsidiaries is represented by a union, and, to the
Knowledge of the Company, since the Reference Date, no union organizing efforts have been conducted
or are now being conducted. Set forth on Schedule 3.22 hereto is a list of all material
actions, suits and proceedings pending between the Company or any Subsidiary and any employees,
former employees or prospective employees of the Company or such Subsidiary or involving other
labor-related matters (including, without limitation, charges of employment

23

 

discrimination or
unfair labor practices) other than ordinary course claims for benefits under Employee Benefit Plans
and workers’ compensation claims that would not reasonably be expected to have a Material Adverse
Effect. To the Knowledge of the Company, neither the Company nor any Subsidiary is in violation in
any material respect of any provision of any Law promulgated by any Governmental Authority
regarding the terms and conditions of employees, former employees or prospective employees or other
labor-related matters, including, without limitation, Laws relating to discrimination, fair labor
standards and occupational health and safety, wrongful discharge or violation of the personal
rights of employees, former employees or prospective employees of the Company or any Subsidiary,
except where such violation would not, individually or in the aggregate, currently have a Material
Adverse Effect.

     Section 3.23. Accounts Receivable. All accounts receivable reflected on the Latest Balance
Sheet and those accounts receivable that have arisen since the date of the Latest Balance Sheet and
have not yet been collected, represent valid obligations of customers of the Company and its
Subsidiaries arising from bona fide transactions entered into in the ordinary course of business
and, except from Permitted Liens, are free and clear of all Liens.

     Section 3.24. Bank Accounts. The Company has provided to Buyer a correct and complete list of
each account maintained by the Company and its Subsidiaries at any bank or other financial
institution, including the following information for each such account: (a) the name and location
of the institution at which such account is maintained, (b) the name in which such account is
maintained and the account number of such account, (c) a brief description of such account and (d)
the names of all individuals authorized to draw on or make withdrawals from such account.

     Section 3.25. Foreign Corrupt Practices Act. Except as would not reasonably be expected to
have a Material Adverse Effect, neither the Company, nor any Subsidiary, nor any director, officer,
agent, employee or other person associated with or acting on behalf of the Company or any
Subsidiary has (i) violated or is in violation of any provision of the U.S. Foreign Corrupt
Practices Act of 1977, as amended, and the rules and regulations thereunder; (ii) used any
corporate funds for any unlawful contribution, gift, entertainment or other unlawful expense
relating to political activity or to influence official action; (iii) made any direct or indirect
unlawful payment to any foreign or domestic government official or employee from corporate funds;
or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment to
any foreign or domestic government official or employee from corporate funds.

     Section 3.26. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND
WARRANTIES CONTAINED IN THIS ARTICLE 3 (QUALIFIED BY THE SCHEDULES), NEITHER THE COMPANY
NOR ANY OF THE SUBSIDIARIES MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, AND THE
COMPANY AND EACH SUBSIDIARY HEREBY DISCLAIM ANY SUCH REPRESENTATION OR WARRANTY IN CONNECTION WITH
THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT.

24

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE SECURITYHOLDERS

          Each Securityholder, severally and not jointly, represents and warrants to the Buyer, as to
such Securityholder that:

     Section 4.01. Organizational Authorization. If such Securityholder is an entity, the
execution, delivery and performance by such Securityholder of this Agreement and the consummation
of the transactions contemplated hereby are within such Securityholder’s organizational powers and
have been duly authorized by all necessary action on the part of such Securityholder. This
Agreement and the Joinder Agreement, as applicable, constitutes a valid and binding agreement of
such Securityholder, enforceable against such Securityholder in accordance with its terms, subject
to applicable bankruptcy, insolvency, reorganization, moratorium and similar Laws affecting
creditors’ rights generally, and subject, as to enforceability, to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity).

     Section 4.02. Governmental Authorization. Subject to the Antitrust Approvals, the execution,
delivery and performance by such Securityholder of this Agreement and the Joinder Agreement, as
applicable, require no material action by or in respect of, or material filing with, any
Governmental Authority, agency or official.

     Section 4.03. Noncontravention. The execution, delivery and performance by such
Securityholder of this Agreement and the Joinder Agreement, as applicable, do not and will not (i)
with respect to any Securityholder that is an entity, violate its certificate or articles of
incorporation or bylaws or other equivalent governing documents, (ii) assuming compliance with the
matters referred to in Section 4.02, violate any material Law applicable to the
transactions contemplated hereby or (iii) require any material consent or other material action by
any Person under, constitute a default under, or give rise to any right of termination,
cancellation or acceleration of any right or obligation of such Securityholder under any provisions
of any material agreement or other material instrument binding upon such Securityholder.

     Section 4.04. Ownership of Securities. As of the date hereof, such Securityholder (a) if a
Stockholder, is the owner of the number of Shares set forth opposite such Securityholder’s name on
Schedule 3.02 hereto, free and clear of any Lien, except for Permitted Liens; and (b) if an
Optionholder, is the owner of the number of Options at the exercise prices indicated thereon set
forth opposite such Optionholder’s name on Schedule 3.02 hereto, free and clear of any
Lien, except for Permitted Liens. Such Securityholder will be, as of the Closing, the record and
beneficial owner of such Securityholder’s respective Shares and/or Options, free and clear of any
Liens, except Permitted Liens.

     Section 4.05. Advisory and Other Fees. Such Securityholder has not incurred nor shall become
liable for any advisory fee, broker’s commission or finder’s fee relating to or in connection with
the transactions contemplated by this Agreement.

     Section 4.06. No Action. Such Securityholder (i) does not have any action or cause of action
or other claim whatsoever against the Company or any Subsidiary, (ii) except for (A)

25

 

rights under
this Agreement, (B) unpaid Indebtedness payable to ACAS, ACEI, ACEII or any of their respective
Affiliates, which will be paid in accordance with Section 2.03(b)(v) hereof, (C) rights
under matters set forth in Schedule 3.10 hereto or arising under Contracts disclosed
pursuant to Section 3.16(l), (D) wages and other employee benefits owed to any
Securityholder that is also an employee of the Company or a Subsidiary or (E) rights to
indemnification owed to any Securityholder or its Affiliates by virtue of such Securityholder’s
service as a director, employee, agent or representative of the Company or any Subsidiary, is not
owed any amount by and does not owe any amount to the Company or any Subsidiary.

     Section 4.07. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND
WARRANTIES CONTAINED IN THIS ARTICLE 4, SUCH SECURITYHOLDER MAKES NO EXPRESS OR IMPLIED
REPRESENTATION OR WARRANTY, AND SUCH SECURITYHOLDER HEREBY DISCLAIMS ANY SUCH REPRESENTATION OR
WARRANTY IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE CONSUMMATION OF
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF THE BUYER

          The Buyer represents and warrants to the other parties hereto that:

     Section 5.01. Existence and Power. Buyer is a corporation duly organized, validly existing
and in good standing under the Laws of the State of Ohio and has all corporate powers and all
material Approvals from Governmental Authorities required to carry on its business as now
conducted.

     Section 5.02. Organizational Authorization. The Buyer has the full right, power and authority
to enter into this Agreement and each agreement, document and instrument to be executed and
delivered by it pursuant to or as contemplated by this Agreement and to carry out the transactions
contemplated hereby and thereby. The execution and delivery of this Agreement and the performance
of the Buyer’s obligations hereunder have been duly authorized by all necessary corporate action on
the part of the Buyer. This Agreement and each agreement, document and instrument to be executed
and delivered by the Buyer pursuant to this Agreement constitute, or will when executed and
delivered constitute, valid and binding obligations of the Buyer, enforceable in accordance with
their respective terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
and similar Laws affecting creditors’ rights generally, and subject, as to enforceability, to
general principles of equity (regardless of whether enforcement is sought in a proceeding at law or
in equity).

     Section 5.03. Governmental Authorization. Subject to the Antitrust Approvals, the execution,
delivery and performance by the Buyer of this Agreement and each agreement, document and instrument
to be executed and delivered by it pursuant to or as contemplated by this Agreement and the
consummation of the transactions contemplated hereby or thereby require no material action by or in
respect of, or material filing with, any Person (including any Governmental Authority).

26

 

     Section 5.04. Noncontravention. The execution, delivery and performance by the Buyer of this
Agreement and each agreement, document and instrument to be executed and delivered by it pursuant
to or as contemplated by this Agreement and the consummation of the transactions contemplated
hereby and thereby do not and will not (i) violate the certificate of incorporation or code of
regulations of the Buyer, (ii) assuming compliance with the matters referred to in Section
5.03, violate any material Law, judgment, injunction, order or decree or (iii) require any
material consent or other material action by any Person under, constitute a default under, or give
rise to any right of termination, cancellation or acceleration of any right or obligation of the
Buyer under any provisions of any material agreement or other material instrument binding upon the
Buyer.

     Section 5.05. Financing. The Buyer has on the date hereof, and at the Closing shall have,
sufficient cash, available lines of credit or other sources of immediately available funds or
committed capital to enable it to fulfill its obligations hereunder and to make payment of all
amounts to be paid by it hereunder on and after the Closing Date.

     Section 5.06. Purchase for Investment. The Buyer is purchasing the Shares for investment for
its own account and not with a view to, or for sale in connection with, any distribution thereof.
The Buyer is an “accredited investor” and has sufficient knowledge and experience in financial and
business matters so as to be capable of evaluating the merits and risks of its investment in the
Shares and is capable of bearing the economic risks of such investment.

     Section 5.07. Actions and Proceedings. There are no (i) outstanding judgments, orders, writs,
injunctions or decrees of any court, Governmental Authority or arbitration tribunal against the
Buyer or any of its Affiliates, which have or could have a material adverse effect on the ability
of the Buyer to consummate the transactions contemplated hereby or (ii) actions, suits, claims or
legal, administrative or arbitration proceedings or investigations pending or, to the knowledge of
the Buyer, threatened against the Buyer, which have or could have a material adverse effect on the
ability of the Buyer to consummate the transactions contemplated hereby.

     Section 5.08. Finder’s Fees. There is no investment banker, broker, finder or other
intermediary that has been retained by or is authorized to act on behalf of the Buyer who might be
entitled to any fee or commission upon the consummation of the transactions contemplated by this
Agreement.

     Section 5.09. Solvency. Immediately after giving effect to the transactions contemplated by
this Agreement and any financing arrangements incurred by the Buyer in connection therewith, the
Company and each Subsidiary will be able to pay their respective debts as they become due and will
own property that has a fair saleable value greater than the amounts required to pay their
respective debts (including a reasonable estimate of the amount of all contingent liabilities).
Immediately after giving effect to the transactions contemplated by this Agreement, the Company and
each Subsidiary will have adequate capital to carry on their respective businesses. No transfer of
property is being made and no obligation is being incurred in connection with the transactions
contemplated by this Agreement with the intent to hinder, delay or defraud either present or future
creditors of the Company and the Subsidiaries.

27

 

     Section 5.10. Acknowledgment by the Buyer.

          (A) The Buyer has conducted to its satisfaction, an independent investigation and verification
of the financial condition, results of operations, assets, liabilities, properties and projected
operations of the Company and, in making its determination to proceed with the transactions
contemplated by this Agreement, the Buyer has relied on the results of its own independent
investigation and verification and the representations and warranties of the Company and/or the
Securityholders expressly and specifically set forth in this Agreement. SUCH REPRESENTATIONS AND
WARRANTIES BY THE COMPANY AND/OR THE SECURITYHOLDERS CONSTITUTE THE SOLE AND EXCLUSIVE
REPRESENTATIONS AND WARRANTIES OF THE COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS TO THE
BUYER IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY, AND THE BUYER UNDERSTANDS,
ACKNOWLEDGES AND AGREES THAT ALL OTHER REPRESENTATIONS AND WARRANTIES OF ANY KIND OR NATURE
EXPRESSED OR IMPLIED (INCLUDING, WITHOUT LIMITATION, ANY RELATING TO THE FUTURE OR HISTORICAL
FINANCIAL CONDITION, RESULTS OF OPERATIONS, ASSETS OR LIABILITIES OF THE COMPANY OR THE
SUBSIDIARIES OR THE QUALITY, QUANTITY OR CONDITION OF THE ASSETS OF THE COMPANY OR THE
SUBSIDIARIES) ARE SPECIFICALLY DISCLAIMED BY THE COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS.
THE COMPANY, THE SUBSIDIARIES AND THE SECURITYHOLDERS DO NOT MAKE OR PROVIDE, AND THE BUYER HEREBY
WAIVES, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE QUALITY, MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO SAMPLES, OR CONDITION OF THE COMPANY’S OR ANY OF
THE SUBSIDIARIES’ ASSETS OR ANY PART THEREOF.

          (b) In connection with the Buyer’s investigation of the Company and the Subsidiaries, the
Buyer has received from or on behalf of the Company and the Subsidiaries or the Securityholders
certain projections, including projected statements of operating revenues and income from
operations of the Company and the Subsidiaries for the fiscal year ending December 31, 2011 and for
subsequent fiscal years and certain business plan information for such fiscal year and succeeding
fiscal years. The Buyer acknowledges that there are uncertainties inherent in attempting to make
such estimates, projections and other forecasts and plans, that the Buyer is familiar with such
uncertainties, that the Buyer is taking full responsibility for making its own evaluation of the
adequacy and accuracy of all estimates, projections and other forecasts and plans so furnished to
it (including the reasonableness of the assumptions underlying such estimates, projections and
forecasts), and that the Buyer shall have no claim against the Securityholders with respect
thereto. Accordingly, neither the Company, the Subsidiaries nor the Securityholders make any
representations or warranties whatsoever with respect to such estimates, projections and other
forecasts and plans (including the reasonableness of the assumptions underlying such estimates,
projections and forecasts). The Buyer agrees that neither any of the Securityholders nor any other
Person will have or be subject to any liability to the Buyer or any other Person resulting from the
distribution to the Buyer, or the Buyer’s use of, any information regarding the Company or any of
its Subsidiaries or their respective businesses, including the Confidential Information Memorandum
prepared by Lazard, and any information, document or material made available to the Buyer or its
Affiliates in certain physical or on-line “data rooms,” management presentations or any other form
in expectation of the transactions contemplated by this Agreement.

28

 

     Section 5.11. No Knowledge of Misrepresentations or Omissions; No Reliance. The Buyer has no
knowledge that any representation or warranty of the Company or the Securityholders in this
Agreement is not true and correct in all material respects. In addition, the Buyer has no
knowledge of any material errors in, or material omissions from, the Schedules. The Buyer
acknowledges and agrees that the representations and warranties made by the Company in this
Agreement (as qualified by the Schedules) supersede, replace and nullify in every respect the data
set forth in any other document, material or statement, whether written or oral, made available to
the Buyer, and the Buyer shall be deemed to have not relied on any data contained in such other
document, material or statement for any purpose whatsoever, including, without limitation, as a
promise, projection, guaranty, representation, warranty or covenant.

     Section 5.12. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS AND
WARRANTIES CONTAINED IN THIS ARTICLE 5 (AS MODIFIED BY THE SCHEDULES), THE BUYER MAKES NO
EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY, AND THE BUYER HEREBY DISCLAIMS ANY SUCH
REPRESENTATION OR WARRANTY IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS AGREEMENT AND THE
CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

ARTICLE 6

COVENANTS OF THE COMPANY AND THE SECURITYHOLDERS

     Section 6.01. Conduct of the Company and the Subsidiaries. During the period from the date of
this Agreement and continuing until the Closing, the Company agrees as to itself and the
Subsidiaries that, except (i) as expressly contemplated or permitted by this Agreement, (ii) as
required by applicable Law, or (iii) to the extent that the Buyer shall otherwise consent in
writing, which consent shall not be unreasonably withheld, conditioned or delayed:

          (a) the Company and the Subsidiaries shall use reasonable efforts to carry on their respective
businesses in the usual, regular and ordinary course in all material respects, in substantially the
same manner as heretofore conducted, and shall use reasonable efforts to preserve intact their
present lines of business, maintain their rights and franchises and preserve their relationships
(contractual or otherwise) with customers, suppliers and others having business dealings with them
(including, without limitation, through ordinary course renewals, negotiations with and amendments
to such relationships) to the end that their ongoing businesses shall not be impaired in any
material respect at the Closing; provided, however, that no action by the
Company or any Subsidiary with respect to matters specifically addressed by any other provision of
this Section 6.01 shall be deemed a breach of this Section 6.01(a), unless such
action would constitute a breach of one or more of such other provisions;

          (b) neither the Company nor any Subsidiary shall incur or commit to any capital expenditures
or any obligations or liabilities in connection with capital expenditures, except for (i) capital
expenditures and obligations or liabilities in connection therewith incurred or committed to in the
ordinary course of business consistent with past practice or (ii) other capital expenditures and
obligations or liabilities in connection therewith in an amount not to exceed $150,000 in the
aggregate;

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          (c) the Company shall not, and shall not permit any of the Subsidiaries to, (i) declare or pay
any dividends on or make other distributions in respect of any of its capital stock or other equity
interests (except for dividends in Cash and dividends by a Subsidiary to another Subsidiary or the
Company), (ii) split, combine or reclassify any of its capital stock or other equity interests or
issue or authorize or propose the issuance of any other securities in respect of, in lieu of or in
substitution for, shares of its capital stock or other equity interests (except for any such
transaction by a direct or indirect Subsidiary that remains a direct or indirect Subsidiary after
consummation of such transaction), or (iii) repurchase, redeem or otherwise acquire any shares of
its capital stock or any securities convertible into or exercisable for any shares of its capital
stock or other equity interests (except for repurchases and redemptions paid in Cash and upon the
exercise of Options);

          (d) the Company shall not, and shall not permit any Subsidiary to, issue, deliver or sell, or
authorize or propose the issuance, delivery or sale of, any shares of its capital stock of any
class, or any securities convertible into or exercisable for, or any rights, warrants or options to
acquire, any such shares of their respective capital stock, or enter into any agreement with
respect to any of the foregoing, other than the issuance of shares upon the exercise of Options or
other securities convertible into or exercisable for shares of capital stock issued and outstanding
as of the date hereof, issuances of capital stock by a direct or indirect Subsidiary to such
Subsidiary’s parent or another direct or indirect Subsidiary, the transactions contemplated herein
or the Stock Incentive Plan;

          (e) other than to the extent required to comply with its obligations hereunder or required by
Law, the Company shall not, and shall not permit any Subsidiary to, amend or propose to amend its
certificate of incorporation or bylaws or equivalent formation documents;

          (f) the Company shall not, and shall not permit any Subsidiary to, acquire or agree to acquire
by merging or consolidating with, or by purchasing an equity interest in or any portion of the
assets 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 or
in-license any assets or rights (other than the acquisition or in-license of assets used in the
operations of the business of the Company or any Subsidiary in the ordinary course consistent with
past practice); provided, however, that the foregoing shall not prohibit
(i) the creation of new direct or indirect Subsidiaries organized to conduct or continue activities
otherwise permitted by this Agreement or (ii) internal reorganizations or consolidations involving
existing direct or indirect Subsidiaries that remain direct or indirect Subsidiaries;

          (g) other than (i) internal reorganizations or consolidations involving existing direct or
indirect Subsidiaries that remain direct or indirect Subsidiaries or (ii) as may be required by or
in conformance with applicable Law in order to permit or facilitate the consummation of the
transactions contemplated hereby, the Company shall not, and shall not permit any Subsidiary to,
sell, encumber (other than Permitted Liens) or otherwise dispose of, or agree to sell, encumber
(other than Permitted Liens) or otherwise dispose of, any of its assets other than in the ordinary
course of business consistent with past practice;

          (h) the Company shall not, and shall not permit any Subsidiary to, (i) make any loans,
advances or capital contributions to, or investments in, any other Person, other than (A) by the

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Company or a direct or indirect Subsidiary to or in the Company or any other direct or indirect
Subsidiary, (B) pursuant to any contract or other legal obligation of the Company or in any
Subsidiary as in effect as of the date hereof or (C) in the ordinary course of business consistent
with past practice or (ii) create, incur, assume or suffer to exist any indebtedness, issuances of
debt securities, guarantees, loans or advances to the Company or any Subsidiary not in existence as
of the date of this Agreement except (A) pursuant to the credit facilities, indentures (but not in
excess of amounts authorized for issuance thereunder as of the date of this Agreement) and other
arrangements in existence on the date of this Agreement, (B) by the Company or a direct or indirect
Subsidiary to or in the Company or any other direct or indirect Subsidiary, or (C) trade debt and
commercial finance in the ordinary course of business consistent with past practice, in each case
as such credit facilities, indentures and other arrangements and other existing indebtedness may be
amended, extended, modified, refunded, renewed or refinanced after the date of this Agreement;

          (i) other than as required by an existing contract or agreement, an Employee Benefit Plan or
applicable Law and other than in the ordinary course of business consistent with past practice,
neither the Company nor any Subsidiary shall (A) increase the amount of cash compensation or
severance pay of any director or executive officer, (B) make any material increase in, or
commitment to increase materially, any employee benefits, (C) adopt or make any commitment to adopt
any material new Employee Benefit Plan or make any material contribution, other than regularly
scheduled contributions, to any Employee Benefit Plan; or (D) enter into any employment, severance
or similar contract or collective bargaining agreement with respect to any employees.

          (j) neither the Company nor any Subsidiary shall (A) change its fiscal year, (B) make, change
or revoke any material Tax election (except in the ordinary course of business consistent with past
practice or as otherwise required by applicable Law) or (C) except as required by changes in GAAP
or as required by applicable Law, materially change its methods of accounting in effect as of the
date hereof; and

          (k) other than in connection with any action expressly permitted by any other subsection of
this Section 6.01 and except for any new contract awards, and any contract renewals,
negotiations and amendments entered into in the ordinary course of business and consistent with
past practice, neither the Company nor any Subsidiary shall (A) enter into or become bound by, or
permit any of the assets owned or used by it to become bound by, any contract of the type required
to be disclosed pursuant to Section 3.16 of this Agreement (other than in the ordinary
course of business), or (B) prematurely terminate (other than in the ordinary course of business),
or waive any material right or remedy under, any such contract.

     Section 6.02. Access. From the date hereof until the Closing Date, the Company and each
Subsidiary will give the Buyer, its counsel, financial advisors, auditors and other authorized
representatives reasonable access to the offices, employees, properties, books and records of the
Company and the Subsidiaries; provided, that any such access (i) shall be during
normal business hours on reasonable notice, (ii) shall not, except as otherwise agreed in writing
by the Securityholder Representative and the Company, include sampling or testing of soil,
sediment, surface or ground water and/or building material, (iii) shall not be required where such
access would be prohibited or otherwise limited by any applicable Law or agreement and (iv) shall
not

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otherwise unreasonably interfere with the conduct of the business of the Company or the
Subsidiaries; provided, further, that nothing herein shall require the
Company or any Subsidiary to provide access to, or to disclose any information to, the Buyer if
such access or disclosure (x) would cause significant competitive harm to the Company or the
Subsidiaries if the transactions contemplated by this Agreement are not consummated or (y) would be
in violation of applicable Laws of any Governmental Authority (including Antitrust Laws) or the
provisions of any agreement to which the Company or any of the Subsidiaries is a party.

     Section 6.03. Subsequent Actions. On or before the Closing Date, the Company and the
Securityholders may disclose to the Buyer in writing any exceptions to or variances from the
representations and warranties in Article 3 or Article 4, and such disclosures
shall amend and supplement the appropriate Schedules (such updated schedules to be referred to
herein collectively as the “Updated Schedules”). Except for the purposes of Section
9.01(a) as specifically set forth therein, the delivery of such Updated Schedules will be
deemed to have cured any misrepresentation or breach of warranty that otherwise might have existed
hereunder by reason of such exception or variance, and the Buyer shall have no rights or claims
under Article 11 of this Agreement with respect to any such misrepresentation or breach of
warranty that is deemed cured by the Updated Schedules.

ARTICLE 7

COVENANTS OF THE BUYER

     Section 7.01. Confidentiality. Prior to the Closing Date and after any termination of this
Agreement, the Buyer shall hold and shall cause its Affiliates, officers, directors, employees,
accountants, counsel, consultants, advisors and agents (collectively, the “Buyer’s
Representatives”) to hold, in confidence, all confidential documents and information concerning
the Company or any Subsidiary furnished to the Buyer or the Buyer’s Representatives in connection
with the transactions contemplated by this Agreement in the manner specified in the Confidentiality
Agreement dated as of April 25, 2011, between Lazard and the Buyer, as amended from time to time
(the “Confidentiality Agreement”).

     Section 7.02. Access. From and after the Closing, the Buyer and the Company (and each
Subsidiary) shall afford promptly to the Securityholder Representative and its designees and
representatives reasonable access to the books, records (including accountants’ work papers) and
employees of the Company and the Subsidiaries to the extent necessary to permit the Securityholder
Representative to determine any matter relating to the Securityholder Representative’s or the
Securityholders’ rights and obligations hereunder or to any period ending on or before the Closing
Date; provided, that any such access by the Securityholder Representative (i) shall
be during normal business hours on reasonable notice, (ii) shall not be required where such access
would be prohibited by applicable Law or agreement, and (iii) shall not otherwise unreasonably
interfere with the conduct of the business of the Company or the Subsidiaries. Unless otherwise
consented to in writing by the Securityholder Representative, neither the Buyer, the Company nor
any Subsidiary shall, for a period of seven (7) years after the Closing Date, destroy, alter or
otherwise dispose of any of the material corporate, financial, Tax and accounting books and records
(which shall not include e-mails) of the Company or any Subsidiary, without first offering to
surrender to the Securityholder Representative such books

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and records or any portion thereof which
the Buyer, the Company or any Subsidiary may intend to destroy, alter or otherwise dispose of.

     Section 7.03. Notification. Prior to the Closing, upon discovery of any variances from the
representations and warranties contained in this Agreement, the Buyer shall promptly notify the
Company and the Securityholder Representative of such variances.

     Section 7.04. Director and Officer Liability, Indemnification and Insurance. For a period of
six (6) years after the Closing Date, the Buyer shall not, and shall not permit the Company or any
Subsidiary to amend, repeal or modify any provision in the Company’s or any Subsidiary’s
certificate of incorporation or bylaws (or equivalent governing documents) relating to the
exculpation or indemnification of any current or former officer, manager, director or similar
functionary (the “Indemnified Representatives”) (unless required by Law), it being the
intent of the parties that the Indemnified Representatives prior to the Closing shall continue to
be entitled to such exculpation and indemnification to the fullest extent of the Law. The Buyer
shall cause the Company and each Subsidiary, at the Company’s sole cost and expense, to maintain
its existing officers’ and directors’ liability insurance, or other liability insurance that covers
events occurring prior to the Closing on terms and in amounts no less favorable to the Indemnified
Representatives than its existing officers’ and directors’ liability insurance for a period of six
(6) years after the Closing. The Buyer shall, to the fullest extent permitted by applicable Law,
cause the Company and its Subsidiaries, at the Company’s sole cost and expense, to honor all of the
Company’s and its Subsidiaries’ obligations to indemnify (including any obligations to advance
funds for expenses) the Indemnified Representatives for acts or omissions by such Indemnified
Representatives occurring prior to the Closing Date to the extent that such obligations of the
Company or any of its Subsidiaries exist on the date of this Agreement, whether pursuant to the
organizational documents of the Company or any of its Subsidiaries, individual indemnity
agreements, management board resolution or otherwise, and such obligations shall survive the
Closing and shall continue in full force and effect in accordance with the terms of the
organizational documents of the Company or any of its Subsidiaries, as the case may be, and such
board resolutions or individual indemnity agreements from the Closing Date until the expiration of
the applicable statute of limitations with respect to any claims against such Indemnified
Representatives arising out of such acts or omissions. From and after the Closing Date, to the
fullest extent permitted by applicable law, Buyer shall, and shall cause the Company to, indemnify,
defend and hold harmless the Indemnified Representatives against all Losses, as incurred (payable
monthly upon written request which request shall include reasonable evidence of the Losses set
forth therein) to the extent arising from, relating to, or otherwise in respect of, any actual or
threatened Third Party Claim in respect of actions or omissions occurring at or prior to the
Closing Date in connection with such Indemnified Representatives duties as an officer, director or
employee of the Company or any of its Subsidiaries, including in respect to this Agreement and the
other transactions contemplated by the this Agreement. Each of the Buyer and its Affiliates
(determined after the Closing Date) covenants for itself and its respective successors, assigns,
heirs, legatees and personal representatives that it shall not institute any Third Party Claim
against any of the current or former officers or directors of the Company or any of its
Subsidiaries, in their capacity as such, with respect to any Losses or other liabilities, actions
or causes of action, judgments, claims and demands of any nature or description (consequential,
compensatory, punitive or otherwise) arising from or relating to actions occurring prior to the
Closing, whether or not such Person would be entitled to indemnification

33

 

by the Company under this
Section 7.04. If the Company or any Subsidiary or any of their respective successors or
assigns (i) shall consolidate with or merge into any other Person and shall not be the continuing
or surviving corporation or entity of such consolidation or merger or (ii) shall transfer all or
substantially all of its properties and assets to any Person, then, and in each such case, proper
provisions shall be made so that the successors and assigns of the Company or each Subsidiary shall
assume all of the obligations set forth in this Section 7.04. The provisions of this
Section 7.04 are intended for the benefit of, and will be enforceable by, each Indemnified
Representative and his or her heirs and representatives, and are in addition to, and not in
substitution for, any other rights to indemnification or contribution that any such person may have
had by contract or otherwise. The Buyer and the Company acknowledge and agree that, to the extent
that an Indemnified Representative is entitled to be indemnified by the Company or any Subsidiary
as contemplated by this Section 7.04 and by any Securityholder or any Affiliate of any such
Securityholder (other than the Company or any Subsidiary) under any other agreement or instrument,
or by any insurer under a policy maintained by any such Securityholder or Affiliate, (i) the
obligations of the Company hereunder shall be primary, and the obligations of such Securityholder,
Affiliate or insurer secondary, (ii) the Indemnified Representative shall proceed first against the
Company and any insurer under any policy maintained by the Company, and second, if indemnification
is not provided by the Company or any such insurer on a timely basis, against any insurer under a
policy maintained by any such Securityholder or Affiliate, (iii) the Company shall be required to
advance the full amount of expenses incurred by any Indemnified Representative and shall be liable
for the full amount of all expenses, judgments, penalties, fines and amounts paid in settlement to
the extent legally permitted and as required by the terms of this Agreement, and (iv) the Company
shall not be entitled to contribution or indemnification from or subrogation against any such
Securityholder, Affiliate or insurer under a policy maintained by any such Securityholder or
Affiliate. In the event that any such Securityholder or Affiliate makes indemnification payments
or advances to the Indemnified Representative in respect of any Losses (including all interest,
assessments and other charges paid or payable in connection with or in respect of any such Losses)
for which the Company would also be obligated as contemplated by this Agreement, the Company shall
indemnify, reimburse and hold harmless such Securityholder or Affiliate in full on demand.

     Section 7.05. Regulatory Filings. Except as otherwise provided in Section 8.07, the
Buyer shall, within three (3) Business Days after the date hereof, make or cause to be made all
filings and submissions required of the Buyer under any Laws applicable to the Buyer for the
consummation of the transactions contemplated herein. The Buyer shall be responsible for all
filing fees under any such Laws applicable to the Buyer.

     Section 7.06. Contact with Employees, Customers and Suppliers. Prior to the Closing, neither
the Buyer nor any of the Buyer’s Representatives shall contact or otherwise communicate with any
employees, customers or suppliers of the Company or any Subsidiary in connection with or regarding
the transactions contemplated hereby, except to the extent approved in writing by the
Securityholder Representative.

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ARTICLE 8

ADDITIONAL COVENANTS OF THE PARTIES

     Section 8.01. Reasonable Best Efforts; Further Assurances. Subject to the terms and
conditions of this Agreement, the Buyer, the Company and the Securityholders shall use their
commercially reasonable best efforts to take, or cause to be taken, all actions necessary or
desirable to cause the conditions set forth in Article 9 to be satisfied and the
transactions contemplated by this Agreement to be consummated, in each case as promptly after the
date hereof as practicable. Except as otherwise expressly set forth in this Agreement, neither the
Securityholders nor the Company on the one hand, nor the Buyer on the other hand, shall have any
obligation to pay any amounts or incur any liability or obligation to any third party as a
condition or inducement for obtaining any consents described on Schedule 9.01(c) hereto.
Each of the Securityholders, the Company and the Buyer agree to execute and deliver such other
documents, certificates, agreements and other writings and to take such other actions as may be
reasonably necessary or desirable in order to consummate or implement expeditiously the
transactions contemplated by this Agreement. From time to time, as and when requested by any party
hereto and at such party’s expense, any other party shall execute and deliver, or cause to be
executed and delivered, all such documents and instruments and shall take, or cause to be taken,
all such further or other actions as such other party may reasonably deem necessary or desirable to
evidence and effectuate the transactions contemplated by this Agreement.

     Section 8.02. Further Cooperation. Each of the Securityholders and the Buyer shall cooperate
with each other (i) in determining whether any action by or in respect of, or filing with, any
Governmental Authority is required, or any actions, consents, approvals or waivers are required to
be obtained under any material contracts, in each case in connection with the consummation of the
transactions contemplated by this Agreement, and (ii) in taking such actions or making any such
filings, in furnishing information required in connection therewith and in seeking timely to obtain
any such actions, consents, approvals or waivers.

     Section 8.03. Public Announcements. No press release or other public announcement related to
this Agreement or the transactions contemplated herein shall be issued or made without the joint
approval of the Buyer, the Securityholder Representative and, prior to the Closing Date, the
Company, unless required by Law or the requirements of any stock exchange or Nasdaq (in the
reasonable opinion of counsel), in which case the Buyer, the Securityholder Representative and,
prior to the Closing Date, the Company shall, to the extent practicable, have the right to review
and comment on such public announcement prior to publication. Notwithstanding the foregoing, on or
after the Closing, ACAS, ACEI and ACEII shall be permitted to disclose any returns, gains or losses
realized as a result of their respective investments in the Company and the transactions
contemplated hereby without any approval of the Company, the Buyer or the Securityholder
Representative; provided, that neither ACAS, ACEI nor ACEII may, without the
consent of the Buyer, disclose in such announcement the purchase price or the multiple of EBITDA
paid for the Company hereunder.

     Section 8.04. Tax Matters. All transfer, documentary, sales, use, stamp, registration, value
added and other such Taxes and fees (including any penalties and interest) incurred in connection
with this Agreement, shall be borne and paid by the Buyer when due, and the Buyer will, at its own
expense, file all necessary Tax Returns and other documentation with respect to

35

 

all such Taxes and
fees, and, if required by applicable Law, then the Securityholders will execute and deliver, and
will cause their respective Affiliates to join in the execution and delivery of, any such Tax
Returns and other documentation. The Buyer shall prepare or cause to be prepared and file or cause
to be filed all Tax Returns for the Company and each Subsidiary for all periods ending prior to or
including the Closing Date which are filed after the Closing Date. At least fifteen (15) days
prior to the date on which each such income Tax Return is filed, the Buyer shall submit such Tax
Return to the Securityholder Representative for its review and approval, which approval shall not
be unreasonably withheld, conditioned or delayed. Buyer shall provide to the Securityholder
Representative such use and sales Tax Returns promptly after filing such Tax Returns.

     Section 8.05. Disclosure Generally. The Schedules have been arranged, for purposes of
convenience only, as separately titled Schedules corresponding to the Sections of Article
3. Any information set forth in any Schedule or incorporated in any Section of this Agreement
shall be considered to have been set forth in each other Schedule to the extent the relevance of
such information is reasonably apparent on the face of such Schedule and shall be deemed to modify
the representations and warranties in Article 3 whether or not such representations and
warranties refer to such Schedule. The specification of any dollar amount in the representations
and warranties contained in this Agreement or the inclusion of any specific item in the Schedules
is not intended to imply that such amounts, or higher or lower amounts, or the items so included or
other items, are or are not required to be disclosed or are within or outside of the ordinary
course of business, and neither party shall use the fact of the setting of such amounts or the fact
of the inclusion of any such item in the Schedules in any dispute or controversy with any party as
to whether any obligation, item or matter not described herein or included in a Schedule is or is
not required to be disclosed (including, without limitation, whether such amounts are required to
be disclosed as material) or in the ordinary course of business for the purposes of this Agreement.
The information contained in the Schedules is disclosed solely for the purposes of this Agreement,
and no information contained therein shall be deemed to be an admission by any party hereto to any
third party of any matter whatsoever, including of any violation of Law or breach of any agreement.

     Section 8.06. Conflicts and Privilege. It is acknowledged by each of the parties hereto that
ACAS, ACEI, ACEII, the Company and the Securityholder Representative have retained PB and
Arnold & Porter LLP (“AP”) to act as their counsel in connection with the transactions
contemplated hereby and that neither PB nor AP has acted as counsel for any other party in
connection with the transactions contemplated hereby and that none of the other parties has the
status of a client of PB or AP for conflict of interest or any other purposes as a result thereof.
The Buyer hereby agrees that, in the event that a dispute arises after the Closing between the
Buyer, ACAS, ACEI, ACEII or the Securityholder Representative, PB or AP may represent ACAS, ACEI,
ACEII or the Securityholder Representative in such dispute even though the interests of ACAS, ACEI,
ACEII or the Securityholder Representative may be directly adverse to Buyer, the other
Securityholders, the Company or the Subsidiaries, and even though PB or AP, as applicable, may have
represented the Company or the Subsidiaries in a matter substantially related to such dispute, or
may be handling ongoing matters for the Buyer, the Company or the Subsidiaries. The Buyer further
agrees that, as to all communications among PB or AP and the Company, any Subsidiary, ACAS, ACEI,
ACEII and/or the Securityholder Representative that relate in any way to the transactions
contemplated by this Agreement, the

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attorney-client privilege and the expectation of client
confidence belongs to the Securityholder Representative and may be controlled by the Securityholder
Representative and shall not pass to or be claimed by the Buyer, the Company or any Subsidiary.
Notwithstanding the foregoing, in the event that a dispute arises between the Buyer, the Company or
any Subsidiary and a third party other than a party to this Agreement after the Closing, the
Company or such Subsidiary may assert the attorney-client privilege to prevent disclosure of
confidential communications by PB or AP to such third party; provided, however,
that neither the Company nor such Subsidiary may waive such privilege without the prior
written consent of PB or AP, as applicable. Each of PB and AP is an intended third party
beneficiary of this Section 8.06 and shall be entitled to rely on the provisions hereof.

     Section 8.07. Antitrust Filings.

          (a) The Buyer, the Securityholder Representative and the Company shall, within three (3)
Business Days after the date hereof, if required by the Antitrust Laws, file with the appropriate
Governmental Authority all forms and documentation required to be filed by them under the Antitrust
Laws concerning the transactions contemplated hereby, and shall request early termination of the
waiting period, if applicable, under such Antitrust Laws. From the date of such filing until the
Closing Date, the Buyer, the Securityholder Representative and the Company shall file all reports
or other documents required or requested by the appropriate Governmental Authority under the
Antitrust Laws, or otherwise and will comply promptly with any requests by such Governmental
Authority for additional information concerning the transactions contemplated hereby, so that the
waiting period specified in the Antitrust Laws will expire or terminate as soon as reasonably
possible after the execution and delivery of this Agreement. The Buyer shall pay all filing fees
required in connection with any filing required under the Antitrust Laws. The Buyer, the
Securityholder Representative and the Company agree to use reasonable efforts to insure that any
applicable waiting periods imposed under the Antitrust Laws terminate or expire as early as
practicable. Without limiting the foregoing, the Buyer, the Securityholder Representative and the
Company agree to use reasonable efforts to cooperate and oppose any preliminary injunction sought
by any Governmental Body preventing the consummation of the transactions contemplated by this
Agreement.

          (b) The Buyer and the Securityholder Representative shall cause their respective counsel to
furnish each other such necessary information and reasonable assistance as the other may reasonably
request in connection with its preparation of necessary filings or submissions under the provisions
of the Antitrust Laws. The Buyer and the Securityholder Representative will cause their respective
counsel to supply to each other copies of all correspondence, filings or written communications by
or to such party or its Affiliates with or from any Governmental Authority or staff members
thereof, with respect to the transactions contemplated by this Agreement and any related or
contemplated transactions, except for documents filed pursuant to Item 4(c) of the HSR Act
Notification and Report Form or communications regarding the same documents or information
submitted in response to any request for additional information or documents pursuant to the
Antitrust Laws that in each case reveal the Company’s or the Buyer’s negotiating objectives or
strategies or purchase price expectations.

     Section 8.08. WARN. For a period of one year following the Effective Time, the Buyer agrees
to cause the Company and each of its Subsidiaries to provide any required notice under

37

 

the WARN Act, or any similar law, and to otherwise comply with any such law with respect to any “plant
closing” or “mass layoff” (as defined in the WARN Act or similar law) or similar event affecting
the employees of the Company or any of its Subsidiaries.

ARTICLE 9

CONDITIONS TO CLOSING

     Section 9.01. Conditions to the Buyer’s Obligations. The obligations of the Buyer to
consummate the transactions contemplated by this Agreement are subject to the satisfaction (or the
Buyer’s waiver) of the following conditions as of the Closing Date:

          (a) the representations and warranties of the Company and the Securityholders contained in
Article 3 and Article 4 hereof will be true and correct in all material respects
(or, to the extent qualified by materiality within any such representation or warranty, true and
correct in all respects) at and as of the time of the Closing (without taking into account any
Updated Schedules delivered in accordance with Section 6.03 except to the extent that the
disclosures in such Updated Schedules are the result of activities explicitly contemplated by this
Agreement or permitted by Section 6.01), as if made on the Closing Date and the Closing
Date were substituted for the date of this Agreement throughout such representations and
warranties, except (i) to the extent that the failure of such representations and warranties to be
true and correct has not caused a Material Adverse Effect, (ii) for activities explicitly
contemplated by this Agreement or permitted by Section 6.01, and (iii) for those
representations and warranties that address matters as of any other particular date (in which case
such representations and warranties shall have been true and correct in all material respects (or,
to the extent qualified by materiality within any such representation or warranty, true and correct
in all respects) as of such particular date, except to the extent that the failure of such
representations and warranties to have been true and correct as of such particular date has not
caused a Material Adverse Effect);

          (b) the Company and the Securityholders shall have performed in all material respects all of
the covenants and agreements required to be performed by them under this Agreement at or prior to
the Closing;

          (c) all consents which are set forth on Schedule 9.01(c) hereto shall have been
obtained;

          (d) all material governmental filings and Approvals, including the Antitrust Approvals, that
are required for the consummation of the transactions contemplated hereby and set forth on
Schedule 9.01(d) hereto shall have been made and obtained;

          (e) any applicable waiting period under the Antitrust Laws, including any extension, shall
have expired or shall have been earlier terminated;

          (f) no action, suit, claim or legal, administrative or arbitration proceeding or investigation
shall be pending or, to the Knowledge of the Company, threatened before any Governmental Authority
wherein an unfavorable decision issued pursuant to such action would reasonably be anticipated to
(i) prevent consummation of any of the transactions contemplated by this Agreement, (ii) cause any
of the transactions contemplated by this Agreement to be rescinded following consummation or (iii)
permit consummation of the transactions

38

 

contemplated by this Agreement only subject to any
condition or restriction that has had or would reasonably be expected to have a Material Adverse
Effect;

          (g) the Company shall have delivered to the Buyer a certificate, dated the Closing Date,
stating that the preconditions specified in Sections 9.01(a) and 9.01(b), as they
relate to the Company, have been satisfied;

          (h) the Company shall have delivered a certificate of an officer of the Company (i) certifying
and attaching the resolutions of the board of directors of the Company authorizing the consummation
of the transactions set forth herein and (ii) certifying to the incumbency and signatures of the
officers of the Company executing this Agreement and any other documents delivered pursuant to this
Agreement;

          (i) no Material Adverse Effect shall have occurred after the date of this Agreement;

          (j) the Company shall have delivered evidence that the so-called “shareholder approval
requirements” of Section 280G(b)(5)(B) of the Code and the regulations thereunder (including,
without limitation, the 75 percent shareholder approval requirement and the adequate disclosure
requirement) have been met with respect to each payment that would otherwise be treated as a
parachute payment pursuant to Section 280G of the Code, including, without limitation, the matters
referenced in the disclosures set forth in items 3 through 14 on Schedule 3.03(b)(iii); and

          (k) each of the Securityholders set forth on Exhibit C shall have executed and
delivered to the Buyer a Joinder Agreement.

     Section 9.02. Conditions to the Company and the Securityholders’ Obligations. The obligation
of the Company and the Securityholders to consummate the transactions contemplated by this
Agreement is subject to the satisfaction (or the Securityholder Representative’s waiver) of the
following conditions as of the Closing Date:

          (a) The representations and warranties of the Buyer contained in Article 5 hereof
shall have been true and correct in all material respects (or, to the extent qualified by
materiality within any such representation or warranty, true and correct in all respects) as of the
date of this Agreement and as of the Closing Date, except (i) for changes contemplated by this
Agreement, and (ii) for those representations and warranties that address matters only as of the
date of this Agreement or any other particular date (in which case such representations and
warranties shall have been true and correct in all material respects (or, to the extent qualified
by materiality within any such representation or warranty, true and correct in all respects) as of
such particular date);

          (b) the Buyer shall have performed in all material respects all of the covenants and
agreements required to be performed by it under this Agreement at or prior to the Closing;

          (c) all consents which are set forth on Schedule 9.01(c) hereto shall have been
obtained;

39

 

          (d) all material governmental filings and Approvals, including the Antitrust Approvals, that
are required for the consummation of the transactions contemplated hereby and set forth on
Schedule 9.01(d) hereto shall have been made and obtained;

          (e) any applicable waiting period under the Antitrust Laws, including any extension, shall
have expired or shall have been earlier terminated;

          (f) no action, suit, claim or legal, administrative or arbitration proceeding or investigation
shall be pending or, to the Knowledge of the Company, threatened before any Governmental Authority
wherein an unfavorable decision issued pursuant to such action would reasonably be anticipated to
(i) prevent consummation of any of the transactions contemplated by this Agreement, (ii) cause any
of the transactions contemplated by this Agreement to be rescinded following consummation or (iii)
permit consummation of the transactions contemplated by this Agreement only subject to any
condition or restriction that has had or would reasonably be expected to have a Material Adverse
Effect;

          (g) the Buyer shall have delivered to the Securityholder Representative a certificate of the
Buyer, dated the Closing Date, stating that the preconditions specified in Sections 9.02(a)
and 9.02(b), as they relate to the Buyer, have been satisfied.

ARTICLE 10

TERMINATION

     Section 10.01. Termination. This Agreement may be terminated at any time prior to the
Closing:

          (a) by the mutual written consent of the Buyer and the Securityholder Representative;

          (b) by the Buyer, if there has been a material breach by the Company or any Securityholder of
any covenant or other agreement contained herein and such breach has not been waived by the Buyer
or cured by the Company or such Securityholder within ten (10) Business Days after the Company’s or
the Securityholder Representative’s receipt of written notice thereof from the Buyer;

          (c) by the Securityholder Representative, if there has been a material breach by the Buyer of
any covenant or other agreement contained herein and such breach has not been waived by the
Securityholder Representative or cured by the Buyer within ten (10) Business Days after the Buyer’s
receipt of written notice thereof from the Securityholder Representative; provided,
that the failure to deliver the payments required by Sections 2.02 or 2.03
as required hereunder shall not be subject to cure hereunder unless otherwise agreed to in writing
by the Securityholder Representative;

          (d) by the Buyer, if the transactions contemplated hereby have not been consummated on or
before September 13, 2011; provided, that, if the only outstanding condition to
closing (other than deliveries to be made at or as of the Closing) is the Antitrust Approvals
required by Sections 9.01(d) and 9.02(d), then such date shall automatically be
extended to October 13, 2011; provided, further, that the Buyer shall not be
entitled to terminate this Agreement pursuant

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to this Section 10.01(d) if the Buyer’s
knowing or willful breach of this Agreement has prevented the consummation of the transactions
contemplated hereby; or

          (e) by the Securityholder Representative, if the transactions contemplated hereby have not
been consummated on or before September 13, 2011; provided, that, if the only
outstanding condition to closing (other than deliveries to be made at or as of the Closing) is the
Antitrust Approvals required by Sections 9.01(d) and 9.02(d), then such date shall
automatically be extended to October 13, 2011; provided, further, that the
Securityholder Representative shall not be entitled to terminate this Agreement pursuant to this
Section 10.01(e) if the Company’s or the Securityholders’ knowing or willful breach of this
Agreement has prevented the consummation of the transactions contemplated hereby.

     The party desiring to terminate this Agreement pursuant to clauses (b), (c), (d) or (e) of
this Section 10.01 shall give written notice of such termination to the other parties
hereto.

     Section 10.02. Effect of Termination. In the event this Agreement is terminated by either the
Buyer or the Securityholder Representative as provided in Section 10.01, the provisions of
this Agreement shall immediately become void and of no further force and effect (other than
Section 7.01 (Confidentiality), Section 7.06 (Contact with Employees, Customers and
Suppliers), Section 8.03 (Public Announcements), this Section 10.02, Section
11.04 (Securityholder Representative) and Article 12, each of which shall survive the
termination of this Agreement), and there shall be no liability on the part of the Buyer, the
Company, the Securityholder Representative or any of the Securityholders to any other party hereto,
except for willful breaches of this Agreement prior to the time of such termination and, in the
case of the Buyer, any failure to have sufficiently available funds for the consummation of the
transactions contemplated hereby or to pay the amounts due at Closing as set forth in Sections
2.02 and 2.03.

ARTICLE 11

INDEMNIFICATION/SECURITYHOLDER REPRESENTATIVE

     Section 11.01. Survival Period. The representations, warranties, covenants and agreements set
forth in this Agreement and in any certificates delivered at the Closing in connection with this
Agreement shall survive for a period beginning on the Closing Date and ending on April 30, 2012
(the “Survival Period”), and shall thereafter be of no further force or effect;
provided, that with respect to any covenant or agreement contained herein that
expressly contemplates performance after the end of the Survival Period, the Survival Period for
such covenant or agreement shall continue through the period of such contemplated performance
provided further, that, (i) the representations and warranties set forth in Sections 3.01,
3.02, 3.03, 3.05, 3.14 (with respect to the first sentence thereof
only), 4.01, 4.04, 4.05, 5.01, 5.02, 5.08 (the
“Fundamental Representations”), and claims arising out of actual fraud or an intentional
and knowing breach of subsections (b) – (k) of Section 6.01 shall survive the Closing
indefinitely and (ii) the representations and warranties in Sections 3.06 and 3.19
(the “Tax and ERISA Representations”) shall survive until the date that is ninety (90) days
after the expiration of the statute of limitations applicable to the underlying action.

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     Section 11.02. Indemnification.

          (a) Subject to the provisions of this Section 11.02 and Section 11.03 below,
after the Closing, the Securityholders, severally but not jointly and severally, shall indemnify
the Buyer and hold it harmless against any actual loss, liability, damage or expense (including
reasonable legal fees and expenses, but excluding incidental, consequential or punitive damages or
any liability for lost profits or the like or any damages or liability based on multiple of
profits, multiple of cash flow or similar valuation methodology) (collectively, “Losses”
and individually, a “Loss”) which the Buyer suffers as a result of any breach of the
representations, warranties, covenants and agreements of the Company or the Securityholders set
forth herein and as restated in any certificates delivered by or on behalf of the Company (or any
Subsidiary) or the Securityholders at the Closing; provided, that the Buyer’s right
to seek indemnification for such breaches shall be limited to an amount of Losses not to exceed the
Cap except for Losses relating to or arising out of (i) (A) a breach of the Fundamental
Representations, (B) a breach of the Tax and ERISA Representations, and (C) actual fraud or an
intentional and knowing breach of subsections (b) – (k) of Section 6.01 by the Company,
which shall be limited to an amount of such Losses not to exceed the Purchase Price, or (ii) actual
fraud committed by a Securityholder in such Securityholder’s capacity as a securityholder of the
Company, which shall be limited to an amount of such Losses; and provided, further,
that the Buyer shall not be entitled to seek indemnification with respect to any individual
Loss, unless such Loss is greater than $50,000 and unless such Loss, together with all other Losses
that are greater than $50,000, exceeds $2,500,000, in which case the Buyer shall be entitled to
indemnification only for the amount of such excess up to the Cap, the Purchase Price or the amount
of such Losses, as applicable.

          (b) Subject to the provisions of this Section 11.02 and Section 11.03 below,
after the Closing the Buyer shall indemnify the Securityholder Representative and each
Securityholder and hold them harmless against any Loss which the Securityholder Representative or
any Securityholder (as the case may be) suffers as a result of (i) any breach by the Buyer of its
covenants, agreements, representations and warranties set forth herein and as restated in any
certificates delivered by the Buyer at the Closing and any breach by the Company of its covenants
or agreements herein following the Closing or (ii) the operations of the Company and the
Subsidiaries following the Closing, including, without limitation, any personal injury or other
product liability claim arising out of the ownership, possession or use of any product
manufactured, distributed or sold by the Company or any of its Subsidiaries after the Closing Date.

          (c) No Person shall be liable for any claim for indemnification under subsections (a) or (b)
above unless written notice specifying in reasonable detail the nature of the claim for
indemnification is delivered by the Person seeking indemnification to the Person from whom
indemnification is sought prior to the expiration of the Survival Period, in which case the
representation, warranty, covenant or agreement which is the subject of such claim shall survive,
to the extent of such claim only, until such claim is resolved, whether or not the amount of the
Losses resulting from such breach has been finally determined at the time the notice is given, if,
but only if, (i) in the case of a claim made by reason of a Third Party Claim, the written notice
is accompanied by a copy of the written notice of the third party claimant and (ii) in the case of
any claim made other than by reason of a Third Party Claim, some Losses shall have been incurred in
good faith at or prior to the date of such notice.

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          (d) Promptly after the assertion by any third party of any claim (a “Third Party
Claim”) against any Person entitled to indemnification under this Section 11.02 (the
“Indemnitee”) that results or may result in the incurrence by such Indemnitee of any Loss
for which such Indemnitee would be entitled to indemnification pursuant to this Agreement, such
Indemnitee shall promptly provide notice of such Third Party Claim to the parties from whom such
indemnification could be sought (the “Indemnitors”) and, if the Securityholders are the
Indemnitors, the Securityholder Representative. The Indemnitors may (and if the Indemnitors are
the Securityholders, the Securityholders Representative may, at its option, on behalf of the
Securityholders), assume the defense of the Indemnitee against such Third Party Claim, (including
the employment of counsel and the payment of reasonable expenses). Any Indemnitee shall have the
right to employ separate counsel in any such Third Party Claim and to participate in the defense
thereof, but the fees and expenses of such counsel shall not be an expense of the Indemnitor unless
(i) the Indemnitor shall have failed, within a reasonable time after having been notified by the
Indemnitee of the existence of such Third Party Claim as provided in the preceding sentence, to
assume the defense of such Third Party Claim or (ii) the employment of such counsel has been
specifically authorized by the Indemnitor. In no event will an Indemnitee consent to the entry of
any judgment or enter into any settlement with respect to any Third Party Claim without the prior
written consent of the Indemnitor.

          (e) The amount of any Loss subject to indemnification hereunder or of any claim therefor shall
be calculated net of (i) any accruals or reserves on the Latest Balance Sheet that specifically
relate to the matter(s) for which indemnification is claimed, (ii) any amounts actually recovered
by an Indemnitee pursuant to any indemnification by or indemnification agreement with any
non-affiliated third party (net of all direct collection expenses), (iii) any insurance proceeds or
other cash receipts or sources of reimbursement received as an offset against such Loss (net of all
direct collection expenses) received or receivable by the Buyer or the Company, any Subsidiary or
any of their Affiliates on account of such Loss (each such source named in clauses (ii) and (iii),
a “Collateral Source”), and (iv) any Tax Benefit inuring to the Buyer, the Company, any
Subsidiary, or any of their Affiliates on account of such Loss. If the Buyer, the Company, any
Subsidiary or any of their Affiliates receives a Tax Benefit after an indemnification payment is
made, the Buyer shall promptly pay to the Securityholder Representative (on behalf of the
Securityholders in accordance with their respective Securityholder Allocation Percentages) the
amount of such Tax Benefit at such time or times as and to the extent that such Tax Benefit is
realized. For purposes hereof, “Tax Benefit” shall mean any refund of Taxes paid or
reduction in the amount of Taxes which otherwise would have been paid, in each case computed at the
effective tax rates. The Buyer, the Company and the Subsidiaries shall seek full recovery of any
Loss from all Collateral Sources covering such Loss to the same extent as they would if such Loss
were not subject to indemnification hereunder. The Buyer, the Company and the Subsidiaries shall
not terminate or cancel any insurance policies in effect for periods prior to the Closing. In the
event that a recovery from a Collateral Source is made by the Buyer, the Company, any Subsidiary or
any of their Affiliates with respect to any Loss for which any such Person has been indemnified
hereunder, then a refund equal to the aggregate amount of the recovery (net of all direct
collection expenses) shall be made promptly to the Securityholder Representative (on behalf of the
Securityholders in accordance with their respective Securityholder Allocation Percentages). The
Indemnitors shall be subrogated to all rights of the Indemnitees in respect of any Losses
indemnified by the Indemnitors.

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          (f) Each Person entitled to indemnification hereunder shall take all reasonable steps to
mitigate all losses, costs, expenses and damages after becoming aware of any event which could
reasonably be expected to give rise to any losses, costs, expenses and damages that are
indemnifiable or recoverable hereunder or in connection herewith.

          (g) All indemnification payments made hereunder shall be treated by all parties as adjustments
to the Purchase Price.

          (h) Notwithstanding anything to the contrary contained in this Section 11.02, there
shall be no recovery for any Loss or alleged Loss by the Buyer under this Section 11.02,
and the Loss shall not be included in meeting the stated thresholds hereunder, to the extent such
item has been included in the calculation of the Net Working Capital Amount or the Indebtedness
Amount as determined pursuant to Section 2.04 hereof.

          (i) There shall be no recovery for any Loss or alleged Loss by the Buyer for the conduct of
any environmental investigatory, corrective or remedial action: (1) with respect to any conditions
of contamination identified through any environmental sampling or analysis, or any report to any
Governmental Authority, in either case which is not required by Environmental Requirements, or (2)
except to the extent of such action necessary to attain compliance in a cost effective manner with
Environmental Requirements assuming continued commercial or industrial use of the subject property
and employing risk based standards and institutional controls where available.

     Section 11.03. Limitation of Recourse.

          (a) Except for Losses resulting from (i) actual fraud or an intentional and knowing breach of
subsections (b) – (k) of Section 6.01 by the Company (which, in any case, will be subject
to the limitations of Section 11.02(a) and Section 11.03(b)), or (ii) actual fraud
committed by a Securityholder in such Securityholder’s capacity as a securityholder of the Company,
the indemnification provided by Section 11.02(a) shall be the sole and exclusive remedy for
any Losses of the Buyer, the Company or any Subsidiary with respect to any misrepresentation or
inaccuracy in, or breach of, any representations or warranties or any breach or failure in
performance of any covenants or agreements made by the Company, any Subsidiary, the Securityholder
Representative or any Securityholder in this Agreement or in any exhibit or Schedules hereto or any
certificate delivered hereunder. Each party acknowledges and agrees that, from and after the
Closing, except: (i) for claims resulting from (A) actual fraud or an intentional and knowing
breach of subsections (b) – (k) of Section 6.01 by the Company (which, in any case, will be
subject to the limitations of Section 11.02(a) and Section 11.03(b)) or (B) actual
fraud committed by a Securityholder in such Securityholder’s capacity as a securityholder of the
Company; (ii) for claims of, or causes of action for which the sole remedy sought is equitable
relief; or (iii) for specific performance of obligations to be performed after the Closing Date,
the sole and exclusive remedy of the parties hereto for breach of this Agreement shall be
indemnification in accordance with this Article 11.

          (b) Each Securityholder’s liability for each Loss shall be limited to such Securityholder’s
Securityholder Allocation Percentage multiplied by the amount of such Loss. In no event shall the
aggregate amount of Losses payable by any Securityholder in respect of

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claims for indemnification
exceed such Securityholder’s Securityholder Allocation Percentage multiplied by the Cap;
provided that, each Securityholder’s liability for Losses in respect of claims
relating to or arising out of (i)(A) a breach of the Fundamental Representations, (B) a breach of
the Tax and ERISA Representations, and (C) actual fraud or an intentional and knowing breach of
subsections (b) – (k) of Section 6.01 by the Company shall not exceed such Securityholder’s
Securityholder Allocation Percentage multiplied by the Purchase Price, and (ii) actual fraud or an
intentional and knowing breach of subsections (b) – (k) of Section 6.01 by such
Securityholder shall not exceed the amount of such Loss.

          (c) No Securityholder shall have any liability for a breach of any other Securityholder’s
representations, warranties, covenants or agreements in this Agreement, or the actual fraud
committed by any other Securityholder in such other Securityholder’s capacity as a securityholder
of the Company, and, in each case, the Buyer shall have no right to seek indemnification from any
other Securityholder for any portion of such Loss.

          (d) No claim shall be brought or maintained by the Buyer, the Company or any Subsidiary or
their respective successors or permitted assigns against any officer, director, employee (present
or former) or Affiliate of any party hereto which is not otherwise expressly identified as a party
hereto, and no recourse shall be brought or granted against any of them in such capacities, by
virtue of or based upon any alleged misrepresentation or inaccuracy in or breach of any of the
representations, warranties or covenants of any party hereto set forth or contained in this
Agreement or any exhibit or Schedule hereto or any certificate delivered hereunder.

          (e) The Buyer shall not have any right to assert any claim against the Securityholders with
respect to any Loss, cause of action or other claim to the extent such Loss is a Loss, cause of
action or claim with respect to which the Buyer or any of its Affiliates has taken action (or
caused action to be taken) with the primary intent of accelerating the time period in which such
matter is asserted or payable in order to cause a claim to be made prior to the applicable
expiration date set forth in Section 11.01.

     Section 11.04. Securityholder Representative.

          (a) Each Securityholder hereby appoints ACAS as the “Securityholder Representative” to
act as the agent of the Securityholders with the full power (i) to resolve all questions, disputes,
conflicts and controversies concerning Losses as provided in this Article 11, (ii) to
execute and enter into, on behalf of the Securityholders, and to take all actions thereunder for
and on their behalf, including but not limited the authorization of payments from the Reserve
Account (including any increase thereof pursuant to Section 2.04(b)(i)) in connection with
Losses as provided herein, (iii) to negotiate and/or settle all claims under this Agreement, (iv)
to receive from the Buyer monies payable to the Securityholders in accordance with the provisions
of this Agreement, (v) to otherwise take such actions (or refrain from taking actions) and execute
such documents (including any modifications, waivers or amendments thereto) on the Securityholders’
behalf in connection with this Agreement as the Securityholder Representative, in its sole
discretion, deems proper, (vi) to pay, release and/or distribute any or all of the Reserve Account
or otherwise to pay Losses hereunder, each in its sole discretion, (vii) to adjust the
Securityholder Allocation Percentage of the Reserve Account otherwise payable to any particular

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Securityholder as a result of the payment of Losses resulting from breaches of such
Securityholder’s representations, warranties, covenants or agreements hereunder) and (viii) to
perform all of the functions of the Securityholder Representative under this Agreement. The Buyer
is entitled to rely on the acts and agreements of the Securityholder Representative as the acts and
agreements of the Securityholders. The Securityholder Representative shall be entitled to retain
counsel and to incur such reasonable expenses (including court costs and reasonable attorney’s fees
and expenses) as the Securityholder Representative deems to be reasonably necessary or appropriate
in connection with its performance of its obligations under this Agreement, and all such fees and
expenses incurred by the Securityholder Representative shall be borne pro rata by the
Securityholders based upon their respective initial Securityholder Allocation Percentages.

          (b) The Securityholders hereby agree severally to indemnify the Securityholder Representative
(in its capacity as such), on a pro rata basis based upon their respective Securityholder
Allocation Percentages, against, and to hold the Securityholder Representative (in its capacity as
such) harmless from (and the Securityholder Representative shall have the right to deduct from the
Reserve Account or, after the exhaustion thereof, to seek payment directly from the Securityholders
for the amount of), any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of whatever kind which may at any time be
imposed upon, incurred by or asserted against the Securityholder Representative in such capacity in
any way relating to or arising out of its action or failure to take action pursuant to this
Agreement or in connection herewith in such capacity; provided, that none of the
Securityholders shall be liable for any portion of such liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely from the
gross negligence or willful misconduct of the Securityholder Representative. The Securityholder
Representative may from time to time submit invoices to the Securityholders covering such expenses
and/or liabilities and, upon the request of any Securityholder, shall provide such Securityholder
with an accounting of all expenses paid. In addition to any other rights or remedies (including
Section 11.02(d)), the Securityholder Representative may, upon prior or contemporaneous
written notice, offset any amounts determined by it to be owed to the Securityholder Representative
against the Reserve Account and against any amounts to be paid to the Securityholders hereunder.
The agreements in this Section 11.04 shall survive termination of this Agreement.

          (c) The Buyer shall be fully protected in dealing with the Securityholder Representative under
this Agreement and may rely upon the authority of the Securityholder Representative to act on
behalf of the Securityholders. Any payment by the Buyer to the Securityholder Representative to
the extent authorized under this Agreement shall be considered a payment by the Buyer to the
Securityholders. The appointment of the Securityholder Representative is coupled with an interest
and shall be irrevocable by any Securityholder in any manner or for any reason. This power of
attorney shall not be affected by the death, illness, dissolution, disability, incapacity or other
inability to act of the principal pursuant to any applicable Law.

          (d) The Securityholder Representative may resign from its capacity as Securityholder
Representative at any time by written notice delivered to the Buyer and the Securityholders. If
there is a vacancy at any time in the position of Securityholder Representative for any reason,

46

 

such vacancy shall be filled by a Securityholders vote in the form of a writing executed by the
Securityholders entitled to a majority of the number of votes referred to in the next sentence. In
such event, each Securityholder shall have a number of votes equal to such Securityholder’s
Securityholder Allocation Percentage multiplied by 100 and the authorization of a majority of such
number of votes shall be binding on all of the Securityholders and shall constitute the
authorization of the Securityholders.

          (e) The Securityholder Representative shall not be liable to the Buyer or the Securityholders
in its capacity as the Securityholder Representative for any liability of a Securityholder or for
any error of judgment, or any act done or step taken or omitted by it believed by it to be in good
faith or for any mistake in fact or law, or for anything which it may do or refrain from doing in
connection with this Agreement except in the case of gross negligence or willful misconduct by it.
The Securityholder Representative may seek the advice of reputable legal counsel in the event of
any dispute or question as to the construction of any of the provisions of this Agreement or its
duties hereunder, and it shall incur no liability in its capacity as Securityholder Representative
to the Buyer or the Securityholders and shall be fully protected with respect to any action taken,
omitted or suffered by it in good faith in accordance with the opinion of such counsel.

ARTICLE 12

MISCELLANEOUS

     Section 12.01. Notices. All notices, requests and other communications to any party hereunder
shall be in writing (including facsimile transmission) and shall be given,

     if to the Company (after the Closing) or to the Buyer, then to:

Nordson Corporation

28601 Clemens Road

Westlake, Ohio 44145

Attn: Robert Veillette, Vice President, General Counsel and Secretary

Fax: 440-892-9253

     with a copy to:

Ulmer & Berne LLP

1660 West 2nd St., Suite 1100

Cleveland, OH 44113-1448

Attn: Peter A. Rome, Esq.

Fax: 216-583-7005

or, if to the Company (before the Closing), ACAS, ACEI, ACEII or the Securityholder
Representative, then to:

American Capital, Ltd.

Two Bethesda Metro Center, 14th floor

Bethesda, Maryland 20814

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Attn: Compliance Officer

Fax: (301) 659-6714

          with copies to (which copies shall not constitute notice):

American Capital, Ltd.

2200 Ross Avenue, Suite 5000E

Dallas, Texas 75201

Attn: Kyle Bradford

Fax: (214) 273-6635

          and

Patton Boggs LLP

2000 McKinney Avenue, Suite 1700

Dallas, Texas 75201

Attn: Akash D. Sethi

Fax: (214) 758-1550

     and, for notices to the Company (before the Closing), with a copy to (which shall not
constitute notice):

VP Acquisition Holdings, Inc.

c/o Value Plastics, Inc.

3325 South Timberline Road

Fort Collins, CO 80525

Attn: Chief Financial Officer

Fax: (970) 267-2063

or, if to any other Securityholder, at the address set forth below such Securityholder’s
name on the signature pages hereto or the Joinder Agreement, as applicable.

All such notices, requests and other communications shall be deemed received on the date of receipt
by the recipient thereof if received on a Business Day in the place of receipt prior to 5:00 p.m.
in the place of receipt. Otherwise, any such notice, request or communication shall be deemed not
to have been received until the next succeeding Business Day in the place of receipt.

     Section 12.02. Amendments and Waivers.

          (a) Except as otherwise provided herein, any provision of this Agreement may be amended or
waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an
amendment, by the Buyer and the Securityholder Representative, or in the case of a waiver, by the
party against whom the waiver (in the case of any Securityholder, the Securityholder
Representative) is to be effective.

          (b) No failure or delay by any party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise thereof

48

 

preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

     Section 12.03. Construction; Severability. The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their mutual intent, and no rule
of strict construction shall be applied against any Person. The headings of the sections and
paragraphs of this Agreement have been inserted for convenience of reference only and shall in no
way restrict or otherwise modify any of the terms or provisions hereof. In the event a subject
matter is addressed in more than one representation and warranty in Article 3, the Buyer
shall be entitled to rely only on the most specific representation and warranty addressing such
subject matter. Whenever possible, each provision of this Agreement shall be interpreted in such
manner as to be effective and valid under applicable Law, but, if any provision of this Agreement
is held to be prohibited by or invalid under applicable Law, then such provision shall be
ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement. Unless otherwise
indicated, references in this Agreement to $ or dollars are to U.S. dollars.

     Section 12.04. Expenses. Except as otherwise provided herein, and subject to Section
11.04, each party shall pay all of its own fees, costs and expenses (including, without
limitation, fees, costs and expenses of legal counsel, investment bankers, brokers or other
representatives and consultants and appraisal fees, costs and expenses) incurred in connection with
the negotiation of this Agreement and the other agreements contemplated hereby, the performance of
its obligations hereunder and thereunder, and the consummation of the transactions contemplated
hereby and thereby; provided, that the Buyer shall pay any and all expenses
relating to surveys, title insurance, and any other filings and consents required in connection
with the transactions contemplated by this Agreement; and provided, further,
that all fees payable by the Buyer, the Company, any Subsidiary or the Securityholders in
connection with the Antitrust Approvals shall be paid by the Buyer.

     Section 12.05. Successors and Assigns. The provisions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and assigns;
provided, that no party may assign, delegate or otherwise transfer any of its
rights or obligations under this Agreement without the consent of each other party hereto, except
(i) that Buyer may assign this Agreement to an Affiliate (an “Assignee”) provided that
Buyer remains liable for the obligations, representations, warranties, covenants and agreements of
Assignee hereunder, and (ii) that following the Closing, the Securityholder Representative may
assign, delegate or otherwise transfer any of its rights to one or more of its Affiliates.
Notwithstanding the foregoing, upon notice to the Securityholder Representative, the Buyer may
assign any or all of its rights and obligations under this Agreement to any lender to the Buyer as
security for indebtedness to any such lender with respect to a financing arrangement in connection
with the transactions contemplated under this Agreement.

     Section 12.06. Governing Law. All issues and questions concerning the construction, validity,
interpretation and enforceability of this Agreement and the exhibits and Schedules hereto shall be
governed by and construed in accordance with the laws of the State of Delaware, without giving
effect to any choice of law or conflict of law rules or provisions (whether of the

49

 

State of
Delaware or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Delaware.

     Section 12.07. Arbitration.

          (a) Except for the matters set forth in Section 2.04(a) and the rights of the parties
to equitable relief pursuant to Section 12.10, any dispute, controversy, or claim under,
arising out of, or relating in any way to this Agreement and/or the negotiation, inducement,
validity, interpretation, or breach thereof shall be resolved solely and exclusively by binding
arbitration. Such arbitration shall be conducted in accordance with the Commercial Arbitration
Rules of the American Arbitration Association in effect at the time a demand for arbitration is
made, and the provisions of this Section. In the event of a conflict between the provisions of
this Section and the Commercial Arbitration Rules, the provisions of this Section shall govern.

          (b) Any dispute, controversy, or claim shall be deemed submitted to arbitration under this
Section upon the filing with the Washington, D.C. office of the American Arbitration Association
and delivery to the parties hereto of a written demand for arbitration, which demand shall describe
in reasonable detail the facts and legal grounds forming the basis for the claim and any request
for relief. The arbitration shall be conducted before a panel of three (3) arbitrators (the
“Panel”) who are mutually agreeable to the parties. If the parties cannot mutually agree
upon the selection of an arbitrator, the arbitrator shall be selected in accordance with the rules
of the then-effective Commercial Arbitration Rules of the American Arbitration Association. The
arbitration shall be held in New York, New York, or at another location if agreed to by all
parties.

          (c) The arbitration hearing shall commence within one hundred and twenty (120) calendar days
of the selection of the arbitrator and shall proceed and be completed expeditiously thereafter.

          (d) Unless otherwise ordered by the Panel upon application by a party and good cause shown by
such party, discovery for each party shall be limited to fifteen (15) interrogatories, twenty-five
(25) requests for production of documents, and three (3) depositions. All issues concerning
discovery (including the scope of discovery) upon which the parties cannot agree shall be submitted
to the arbitrator for determination.

          (e) Each party shall identify, no less than twenty (20) business days before the date of the
commencement of the arbitration hearing, all persons that may testify at the arbitration hearing,
all exhibits to be introduced into evidence at the arbitration hearing, and all documents
considered, used, or relied upon by any witness in support of or in connection with that witness’
testimony at the arbitration hearing.

          (f) In rendering an award, the arbitrator shall determine the rights and obligations of the
parties according to the laws of the State of Delaware, except as otherwise expressly provided in
this Section.

          (g) The arbitrator’s decision and award shall be made in writing and shall be issued in a
final, confirmable form no more than forty-five (45) calendar days after the commencement of the
arbitration hearing. The arbitrator shall not have the power to award damages that are

50

 

specifically excluded under this Agreement, and each party hereby irrevocably waives any claim to
such damages. The decision and award of the arbitrator shall be final and binding on the parties
and shall not be subject to appeal. Judgment upon the award rendered by the arbitrator may be
entered in any court having jurisdiction thereof.

          (h) Notwithstanding the provisions of Sections 11.02(a) and (b), and subject
to Section 11.04, each party shall bear its own costs and fees in connection with any
arbitration conducted pursuant to this Section 12.07 and any proceedings in connection
therewith.

          (i) Any party unsuccessfully refusing to comply with an order of the arbitrator shall be
liable for costs and expenses, including reasonable attorneys’ fees, incurred by the other party in
enforcing the order.

     Section 12.08. Forum. Except for the dispute resolution procedures otherwise set forth in
Section 2.04(a) and the rights of the parties to seek equitable relief pursuant to
Section 12.10, each party agrees that any suit, action or proceeding brought by such party
against the other in connection with or arising from this Agreement shall be subject to the
arbitration provisions set forth in Section 12.07. Any equitable remedies sought in
connection with this Agreement (“Judicial Action”) shall be brought against any of the
parties only in any United States federal or state court located in the State of Delaware and each
of the parties hereto hereby consents to the exclusive jurisdiction of such courts (and of the
appropriate appellate courts therefrom) in any such Judicial Action and waives any objection to
venue laid therein. Process in any such Judicial Action proceeding may be served on any party
anywhere in the world, whether within or without the State of Delaware. Without limiting the
generality of the foregoing, each party hereto agrees that service of process upon such party at
the address referred to in Section 12.01, together with written notice of such service to
such party, shall be deemed effective service of process upon such party.

     Section 12.09. Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT TO ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
TRANSACTION CONTEMPLATED HEREBY. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE OF ANY
OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF ANY LEGAL PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 12.09.

     Section 12.10. Specific Performance. Each of the parties hereto acknowledges that the rights
of each party to consummate the transactions contemplated hereby are unique and recognize and
affirm that in the event of a breach of this Agreement by any party, money damages may be
inadequate and the non-breaching party may have no adequate remedy at law. Accordingly, the
parties agree that such non-breaching party shall have the right, in addition to any other rights
and remedies existing in their favor at law or in equity, to enforce their rights

51

 

and the other party’s obligations hereunder not only by an action or actions for damages but also by an action or
actions for specific performance, injunctive and/or other equitable relief (without posting of bond
or other security).

     Section 12.11. Prevailing Party. If any litigation or other court action, arbitration or
similar adjudicatory proceeding is commenced by any party hereto to enforce its rights under this
Agreement against any other party, all fees, costs and expenses, including, without limitation,
reasonable attorneys fees and court costs, incurred by the prevailing party in such litigation,
action, arbitration or proceeding shall be reimbursed by the losing party; provided,
that if a party to such litigation, action, arbitration or proceeding prevails in part, and
loses in part, then the court, arbitrator or other adjudicator presiding over such litigation,
action, arbitration or proceeding shall award a reimbursement of the fees, costs and expenses
incurred by such party on an equitable basis. For the avoidance of doubt, the foregoing sentence
shall not apply to any fees, costs or expenses in connection with Section 2.04(a) or as
contemplated by Section 12.07(h).

     Section 12.12. Counterparts; Third Party Beneficiaries. This Agreement may be signed in any
number of counterparts, each of which shall be an original, with the same effect as if the
signatures thereto and hereto were upon the same instrument. This Agreement shall become effective
when each party hereto shall have received a counterpart hereof signed by the other parties hereto.
Except as otherwise specifically set forth herein (including specifically, but not limited to, the
Persons not party hereto entitled to the benefits of Sections 7.04, 8.06,
11.01, 11.02 and 11.03), no provision of this Agreement is intended to
confer upon any Person other than the parties hereto any rights or remedies hereunder.

     Section 12.13. Entire Agreement. This Agreement and the documents referred to herein
(including the Confidentiality Agreement) contain the complete agreement between the parties hereto
and supersede any other prior understandings, agreements, representations or warranties by or
between the parties, written or oral, which may have related to the subject matter hereof in any
way.

     Section 12.14. Termination of Agreements. Each Securityholder (other than ACAS for the sole
purpose of the enforcement by ACAS of the provisions thereof prior to the Closing), to the extent a
party thereto, agrees that the Stockholders Agreement and that certain Agreement dated October 14,
2005 between the Company and its Subsidiaries, on the one hand, and ACAS, on the other hand
(together, the “Terminating Agreements”) shall be of no further force or effect from and
after the Closing, and hereby waives any and all (i) notice requirements and (ii) rights or
restrictions with respect to the transfer of the shares of Common Stock of the Company set forth in
the Stockholders Agreement. Each Securityholder (other than ACAS for the sole purpose of the
enforcement by ACAS of the provisions thereof prior to the Closing), to the extent a party thereto,
hereby waives any and all rights under the Terminating Agreements, and, except for the continuing
obligations provided for herein, releases all other parties to the Terminating Agreements from all
obligations, commitments, liabilities or claims arising thereunder.

* * *

52

 

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

BUYER:

	 	 	 	 	 
	 	NORDSON CORPORATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Additional Signature Pages Follow]

[Signature Page to Stock Purchase Agreement]

 

 

COMPANY:

	 	 	 	 	 
	 	VP ACQUISITION HOLDINGS, INC.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Additional Signature Pages Follow]

[Signature Page to Stock Purchase Agreement]

 

 

STOCKHOLDERS:

	 	 	 	 	 
	 	AMERICAN CAPITAL, LTD.

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	AMERICAN CAPITAL EQUITY I, LLC

 	 
	 	By:  	American Capital Equity Management,
 	 
	 	 	LLC, its Manager 	 
	 	 	 	 
	 

					
	 	
 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	AMERICAN CAPITAL EQUITY II, LP

 	 
	 	By:  	American Capital Equity Management II,
 	 
	 	 	LLC, its General Partner 	 
	 	 	 	 
	 

					
	 	
 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Additional Signature Pages Follow]

[Signature Page to Stock Purchase Agreement]

 

 

STOCKHOLDERS (cont.):

	 	 	 	 	 

	 	 	 
	 	 	Jim Pisula
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Jeff Jensen
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Bruce Williams
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	John Gibson
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Charles Philipp
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 

[Additional Signature Pages Follow]

[Signature Page to Stock Purchase Agreement]

 

 

OPTIONHOLDERS:

	 	 	 	 	 

	 	 	 
	 	 	Bruce Williams
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	John Gibson
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Charles Philipp
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 	 	Terry Gibbons
	 
	 	 	 	 
	 

	 	Address:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 	 	 

[Additional Signature Page Follows]

[Signature Page to Stock Purchase Agreement]

 

 

SECURITYHOLDER REPRESENTATIVE:

	 	 	 	 	 
	 	AMERICAN CAPITAL, LTD., solely in its 

capacity as Securityholder Representative

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Stock Purchase Agreement]

 

 

Exhibit A

Initial Securityholder Allocation

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Initial Securityholder	 	 	Estimated	 	 	Reserve	 
	Names	 	Allocation (%)1	 	 	Purchase Price ($)2	 	 	Account ($)3	 
	American Capital, Ltd.
	 	 	50.2937	%	 	 	 	 	 	$	502,936.82	 
	American Capital Equity I, LLC
	 	 	25.8791	%	 	 	 	 	 	$	258,791.20	 
	American Capital Equity II, LP
	 	 	10.0943	%	 	 	 	 	 	$	100,943.30	 
	Jeff Jensen
	 	 	0.8136	%	 	 	 	 	 	$	8,136.49	 
	Jim Pisula
	 	 	1.0171	%	 	 	 	 	 	$	10,170.61	 
	Terry Gibbons
	 	 	1.8002	%	 	 	 	 	 	$	18,001.98	 
	John Gibson
	 	 	2.5172	%	 	 	 	 	 	$	25,172.26	 
	Charles Philipp
	 	 	2.0901	%	 	 	 	 	 	$	20,900.61	 
	Bruce Williams
	 	 	5.4947	%	 	 	 	 	 	$	54,946.73	 
	TOTAL
	 	 	100.0	%	 	$	 	 	 	$	1,000,000.00	 
	 
	 	 	 	 	 	 	 	 	 

 

			
	1	 	Subject to adjustment as set forth in the definition
of “Security Allocation Percentage” and Section 11.04.
	 
	2	 	Subject to adjustment pursuant to
Section 2.04.
	 
	3	 	Amounts subject to increase pursuant to Section
2.05.

 

 

Exhibit B

Transaction
Expenses4

 

			
	4	 	To be provided at least 2 Business Days prior to the
Closing Date.

 

 

Exhibit C

Securityholders Party to Joinder Agreements

Jeff Jensen

 

 

Exhibit D

Joinder Agreement

 

 

Schedule 1.01

Persons With Knowledge

Bruce Williams

Terry Gibbons

John Gibson

Chuck Philipp

 

 

Schedule 2.01(f)

Net Working Capital

None.

 

 

Schedule 2.03(b)(v)

Indebtedness
to be Repaid1

Indebtedness to ACAS and its affiliates.

 

			
	1	 	To be provided at least 2 Business Days prior to the
Closing Date.

 

 

Schedule 9.01(c)

Required Consents

None.

 

 

Schedule 9.01(d)

Governmental Approvals

The Anti-Trust Approvals.Exhibit 10.1

Exhibit 10.1

FIRST AMENDMENT TO FORBEARANCE AGREEMENT

THIS FIRST AMENDMENT TO FORBEARANCE AGREEMENT (hereinafter, this “Amendment”) dated as of
September 7, 2011 is by and among YA GLOBAL INVESTMENTS, L.P., formerly known as Cornell Capital
Partners, LP (the “Lender”), a Cayman Islands exempt limited partnership with an office located at
101 Hudson Street, Suite 3700, Jersey City, New Jersey 07302, HOMELAND SECURITY CAPITAL
CORPORATION, a Delaware corporation (the “Company”) with its principal office located at 4601
Fairfax Road, Suite 1200, Arlington, VA 22203, NTG MANAGEMENT CORP. (formerly known as Nexus
Technologies Group, Inc.) a Delaware corporation (“Nexus”), with its principal office located at 7
West Cross Street, Hawthorne, NY 10532 and FIDUCIA HOLDINGS LLC, a Delaware limited liability
company (“Fiducia”) with its principal office located at 4601 Fairfax Road, Suite 1200, Arlington,
VA 22203. Unless otherwise defined herein, capitalized terms used herein shall have the meanings
assigned in the Forbearance Agreement (as defined below).

WITNESSETH

WHEREAS, the Lender, the Company, Homeland Security Advisory Services, Inc., (“HSAS”),
Celerity Systems, Inc. and Nexus entered into a Forbearance Agreement dated as of July 29, 2011
(the “Forbearance Agreement”);

WHEREAS, Celerity Systems, Inc. is a former name of the Company and by executing the
Forbearance Agreement as both Homeland Security Capital Corporation and Celerity Systems, Inc., the
Company executed the Forbearance Agreement twice;

WHEREAS, pursuant to that certain Certificate of Cancellation of Homeland Security Advisory
Services, LLC filed with the Secretary of State of the State of Delaware on August 15, 2011, HSAS
has been dissolved;

WHEREAS, as required by the Forbearance Agreement, Fiducia delivered to the Lender that
certain Guaranty Agreement dated as of August 16, 2011 and joined the Security Agreement pursuant
to that certain Joinder Agreement dated as of August 16, 2011 by Fiducia, Nexus and the Company in
favor of the Lender;

WHEREAS, the Existing Defaults have not been remedied on or prior to the Forbearance
Termination Date and are continuing as of the date hereof; and

WHEREAS, the Company has requested that the Lender extend the Forbearance Period by extending
the Termination Date from August 31, 2011 to September 14, 2011, and the Lender is willing to do
so, but only on the terms and conditions set forth herein.

NOW THEREFORE, in consideration of the premises and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

Amendment

	1.	 	The definition of “Nexus” shall be amended by deleting the following phrase in the
parenthetical “and, collectively with HSAS and Celerity, the “Guarantors” and each, a
Guarantor.”

 

 

 

	2.	 	Section 1 of the Forbearance Agreement shall be amended by inserting the following definition
in its proper alphabetical order:

“Guarantors” means, collectively, Nexus, HSAS, and Fiducia Holdings LLC, a Delaware limited
liability company.

	3.	 	The definition of “Termination Date” in Section 1 of the Forbearance Agreement shall be
deleted in its entirety and replaced with the following language:

“Termination Date” means September 14, 2011.”

	4.	 	The last sentence of Section 14 of the Forbearance Agreement shall be amended by deleting the
reference to “Section 13” and inserting in lieu thereof “Section 14.”

	5.	 	Exhibit A to the Forbearance Agreement shall be amended by adding to the list of documents,
instruments and agreements the following:

	 	“33.	 	Guaranty Agreement dated as of August 16, 2011 by Fiducia Holdings LLC in favor of the
Lender.

	 	34.	 	Joinder Agreement dated as of August 16, 2011 by and among Fiducia Holdings LLC,
Nexus and the Company.”

Fiducia Joinder

	6.	 	Fiducia hereby makes and undertakes, as the case may be, each covenant, representation and
warranty made by a Guarantor pursuant to the Forbearance Agreement as of the date hereof
(except to the extent any such representation or warranty relates solely to an earlier date in
which case such representation and warranty shall be true and correct as of such earlier date)
and agrees to be bound by all covenants, agreements and obligations of a Guarantor pursuant to
the Forbearance Agreement.

Effective Date

	7.	 	This Amendment shall become effective as of the date hereof upon receipt by the Lender of
counterparts of the Amendment duly executed and delivered by the Company, Nexus and Fiducia.

Interpretation

	8.	 	The Lender, the Company, Nexus and Fiducia each hereby acknowledges and agrees that the
Forbearance Agreement and the Financing Documents shall continue to be and shall remain
unchanged and in full force and effect in accordance with their terms. Any terms or
conditions contained in this Amendment shall control over any inconsistent terms or conditions
in the Forbearance Agreement.

 

2

 

	9.	 	Nothing contained in this Amendment shall be construed or interpreted or is intended as a
waiver of any default or Event of Default or of any rights, powers, privileges or remedies
that the Lender has or may have under the Forbearance Agreement, the Financing Documents
and/or applicable law on account of such default or Event of Default.

	10.	 	For purposes of the Forbearance Agreement, the representations, warranties and covenants
contained in this Amendment shall be deemed to be, and shall be, representations, warranties
and covenants under the Financing Documents. Without limiting the foregoing sentence, if the
Company, Nexus and/or Fiducia breach(es) any provision contained herein, or should any
representation or warranty set forth herein be untrue, then such event shall, without the
necessity of any further action by any party, automatically constitute an Event of Default and
a Termination Event.

Waiver of Claims 

	11.	 	The Company, Nexus and Fiducia each hereby acknowledges and agrees that it has no offsets,
defenses, claims, or counterclaims against the Lender, its general partner, and its investment
manager, and each of their respective agents, servants, attorneys, advisors, officers,
directors, employees, affiliates, representatives, investors, partners, members, managers,
predecessors, successors, and assigns (collectively, the “Lender Parties”) and that if the
Company, Nexus or Fiducia now has, or ever did have, any offsets, defenses, claims, or
counterclaims against the Lender Parties, or any one of them, whether known or unknown, at
law or in equity, from the beginning of the world through this date and through the time of
execution of this Amendment, all of them are hereby expressly WAIVED, and the Company, Nexus
and Fiducia each hereby RELEASES the Lender Parties from any liability therefor.

Acknowledgment of Indebtedness

	12.	 	The principal and interest figures set forth in Section 14 of the Forbearance Agreement are
hereby updated as of the date hereof as follows, and the Company, Nexus and Fiducia each
hereby acknowledges and agrees that, in accordance with the terms and conditions of the
Financing Documents, it is liable to the Lender as follows:

	 	a.	 	Due under November 28 Promissory Note as of the date hereof:

	 	 	 	 	 
	Principal
	 	$	71,345.00	 
	Interest
	 	$	28,166.62	 
	 
	 	 	 
	Total
	 	$	99,511.62	 

	 	b.	 	Due under the November 26 Promissory Note as of the date hereof:

	 	 	 	 	 
	Principal
	 	$	178,655.00	 
	Interest
	 	$	70,659.28	 
	 
	 	 	 
	Total
	 	$	249,314.28	 

 

3

 

	 	c.	 	Due under the First March 2008 Promissory Note as of the date hereof:

	 	 	 	 	 
	Principal
	 	$	878,923.00	 
	Interest
	 	$	0.00	 
	 
	 	 	 
	Total
	 	$	878,923.00	 

	 	d.	 	Due under the Second March 2008 Promissory Note as of the date hereof:

	 	 	 	 	 
	Principal
	 	$	6,750,000.00	 
	Interest
	 	$	1,758,009.54	 
	 
	 	 	 
	Total
	 	$	8,508,009.54	 

	 	e.	 	Due under the Third March 2008 Promissory Note as of the date hereof:

	 	 	 	 	 
	Principal
	 	$	6,310,000.00	 
	Interest
	 	$	2,318,021.40	 
	 
	 	 	 
	Total
	 	$	8,628,021.40	 

	 	f.	 	For all interest accruing upon the principal balances of the Promissory Notes
from and after the date hereof, and for all fees, redemption premiums, liquidated
damages, costs, expenses, and costs of collection (including attorneys’ fees and
expenses) heretofore or hereafter accrued or incurred by the Lender in connection with
the Financing Documents.

Representations, Warranties, and Covenants

	13.	 	The Company, Nexus and Fiducia each hereby represents, warrants, and covenants to the Lender
as follows:

	 	a.	 	The execution and delivery of this Amendment by the Company, Nexus and Fiducia
and the performance by the Company, Nexus and Fiducia of its obligations and agreements
under this Amendment, the Forbearance Agreement, and the Financing Documents are within
the authority of the Company, Nexus and Fiducia, have been duly authorized by all
necessary corporate proceedings, if applicable, on behalf of the Company, Nexus and
Fiducia and do not and will not contravene any provision of law, statute, rule or
regulation to which the Company, Nexus or Fiducia is subject or, if applicable, the
Company’s, Nexus’ or Fiducia’s charter, other organization papers, by-laws or any stock
provision or any amendment thereof or of any agreement or other instrument binding upon
the Company, Nexus and/or Fiducia.

	 	b.	 	This Amendment, the Forbearance Agreement and the Financing Documents
constitute legal, valid and binding obligations of the Company, Nexus and Fiducia,
enforceable in accordance with their respective terms, except as limited by bankruptcy,
insolvency, moratorium, fraudulent transfer, reorganization and other laws of general
applicability relating to or affecting the rights or remedies of creditors and by
general equitable principles (whether considered in a proceeding in equity or at law).

 

4

 

	 	c.	 	No approval or consent of, or filing with, any governmental agency or authority
is required to make valid and legally binding the execution, delivery or performance by
the Company, Nexus and/or Fiducia of this Amendment, the Forbearance Agreement or any
of the Financing Documents.

	 	d.	 	The Company, Nexus and Fiducia have performed and complied in all material
respects with all terms and conditions herein required to be performed or complied with
by the Company, Nexus and Fiducia prior to or at the time hereof, and as of the date
hereof, and to the best knowledge of the Company, Nexus and Fiducia, no default and/or
Event of Default has occurred and is continuing under any of the Financing Documents,
with the sole exception of the Existing Defaults.

	 	e.	 	The representations and warranties contained in the Financing Documents were
true and correct in all material respects at and as of the date made and are true and
correct as of the date hereof, except to the extent of changes resulting from
transactions specifically contemplated or specifically permitted by this Amendment, the
Forbearance Agreement and the Financing Documents, and changes occurring in the
ordinary course of business that singly or in the aggregate are not materially adverse
to the financial condition of the Company, Nexus and/or Fiducia and to the extent that
such representations and warranties relate expressly to an earlier date.

	 	f.	 	To the best knowledge of the Company, Nexus and Fiducia, the Company, Nexus and
Fiducia currently have no commercial tort claims (as such term is defined in the Code),
and each of the Company, Nexus and Fiducia hereby covenants and agrees that in the
event it shall hereafter hold or acquire a commercial tort claim, it shall immediately
notify the Lender of the particulars of such claim in writing and shall grant to the
Lender a security interest therein and in the proceeds thereof, upon such terms and
documentation as may be satisfactory to the Lender.

	 	g.	 	The Company, Nexus and Fiducia have read and understand each of the terms and
conditions of this Amendment and confirms that it is entering into this Amendment
freely and voluntarily, without duress, after having had an opportunity for
consultation with independent counsel of its own selection, and not in reliance upon
any representations, warranties, or agreements made by the Lender and not set forth in
this Amendment.

Entire Agreement

	14.	 	This Amendment shall be binding upon the Company, Nexus, Fiducia and the Company’s, Nexus’
and Fiducia’s employees, representatives, successors, and assigns, and shall inure to the
benefit of the Lender and the Lender’s successors and assigns. The Forbearance Agreement, as
amended by the Amendment, incorporates all of the discussions and negotiations between the
Company, Nexus, Fiducia and the Lender, either expressed or implied, concerning the matters
included herein and in such other documents, instruments and agreements, any statute, custom,
or usage to the contrary notwithstanding. No such discussions or negotiations shall limit,
modify, or otherwise affect the provisions hereof. No modification, amendment, or waiver of
any provision of the Forbearance Agreement, as amended by this Amendment, or any provision of
any other document, instrument, or agreement between the Company, Nexus and/or Fiducia, on the
one hand, and the Lender, on the other hand, shall be effective unless executed in writing by
the party to be charged with such modification, amendment, or waiver, and if such party be the Lender,
then by a duly authorized officer thereof.

 

5

 

Construction of Amendment

	15.	 	In connection with the interpretation of this Amendment:

	 	a.	 	All rights and obligations hereunder and thereunder, including matters of
construction, validity, and performance, shall be governed by and construed in
accordance with the law of the State of New Jersey and are intended to take effect as
sealed instruments.

	 	b.	 	The captions of this Amendment are for convenience purposes only, and shall not
be used in construing the intent of the Lender or the Company, Nexus or Fiducia under
this Amendment.

	 	c.	 	Except as specifically modified herein, all terms and conditions of the
Forbearance Agreement shall remain in full force and effect.

	 	d.	 	The Lender, the Company, Nexus and Fiducia have prepared this Amendment with
the aid and assistance of their respective counsel. Accordingly, all of them shall be
deemed to have been drafted by the Lender , the Company, Nexus or Fiducia and shall not
be construed against the Lender, the Company, Nexus or Fiducia.

Illegality or Unenforceablility

	16.	 	Any determination that any provision or application of this Amendment is invalid, illegal, or
unenforceable in any respect, or in any instance, shall not affect the validity, legality, or
enforceability of any such provision in any other instance, or the validity, legality, or
enforceability of any other provision of this Amendment.

Counterparts

	17.	 	This Amendment may be executed in multiple identical counterparts, each of which when duly
executed shall be deemed an original, and all of which shall be construed together as one
agreement.

[Remainder of Page Intentionally Left Blank]

 

6

 

IN WITNESS WHEREOF, this Amendment has been executed as of the date first set forth above.

	 	 	 	 	 
	 	HOMELAND SECURITY CAPITAL CORPORATION

 	 
	 	By:  	/s/ C. Thomas McMillen
 	 
	 	 	Name:  	C. Thomas McMillen 	 
	 	 	Title:  	CEO 	 
	 
	 	NTG MANAGEMENT CORP.

 	 
	 	By:  	/s/ Michael T. Brigante
 	 
	 	 	Name:  	Michael T. Brigante 	 
	 	 	Title:  	CEO 	 
	 
	 	FIDUCIA HOLDINGS LLC

 	 
	 	By:  	/s/ C. Thomas McMillen
 	 
	 	 	Name:  	C. Thomas McMillen 	 
	 	 	Title:  	CEO 	 
	 
	 	YA GLOBAL INVESTMENTS, L.P.

 	 
	 	By: 	Yorkville Advisors, LLC
 	 
	 	Its: 	Investment Manager 	 
	 	 	 
	 	By:  	/s/ Gerald Eicke
 	 
	 	 	Name:  	Gerald Eicke 	 
	 	 	Title:  	Managing Member

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