Document:

Real Estate Purchase Agreement

 Exhibit 10.2 
  
  
 REAL ESTATE PURCHASE AGREEMENT 

DATED AS OF OCTOBER 30, 2008 
 BY
AND AMONG 
 MSC PRE FINISH METALS (MV) INC., 
 MATERIAL SCIENCES CORPORATION, 
 K. MATKEM OF MORRISVILLE, LP, 
 THEODORUS A. BUS 
 AND

 JAMES P. BUS 
  
  

 TABLE OF CONTENTS 
  

					
	  	  	Page
	ARTICLE 1 PURCHASE AND SALE OF ASSETS	  	1
	 Section 1.1.
	  	Purchased Assets	  	1
	 Section 1.2.
	  	Excluded Assets	  	1
	 Section 1.3.
	  	Assumed Liabilities	  	1
	 Section 1.4.
	  	Excluded Liabilities	  	2
	 Section 1.5.
	  	Liens and Encumbrances	  	2
		
	ARTICLE 2 CONSIDERATION AND MANNER OF PAYMENT	  	2
	 Section 2.1.
	  	Purchase Price	  	2
	 Section 2.2.
	  	Payment of Purchase Price	  	2
	 Section 2.3.
	  	Purchase Price Adjustment	  	2
	 Section 2.4.
	  	Adjustment Time	  	2
	 Section 2.5.
	  	Risk of Loss	  	3
		
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF SELLER	  	4
	 Section 3.1.
	  	Organization; Good Standing	  	4
	 Section 3.2.
	  	Authorization	  	4
	 Section 3.3.
	  	Consents and Approvals	  	4
	 Section 3.4.
	  	No Violation	  	4
	 Section 3.5.
	  	Brokers or Finders	  	5
	 Section 3.6.
	  	No Litigation; Compliance with Laws	  	5
	 Section 3.7.
	  	Taxes	  	5
	 Section 3.8.
	  	Real Property	  	5
	 Section 3.9.
	  	Insurance	  	6
	 Section 3.10.
	  	Utilities	  	6
	 Section 3.11.
	  	Disclaimer of Other Representations and Warranties	  	6
		
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER	  	6
	 Section 4.1.
	  	Buyer’s Organization	  	6
	 Section 4.2.
	  	Authorization	  	7
	 Section 4.3.
	  	Consents and Approvals	  	7
	 Section 4.4.
	  	No Violation	  	7
	 Section 4.5.
	  	No Brokers or Finders	  	8
		
	ARTICLE 5 COVENANTS OF THE PARTIES	  	8
	 Section 5.1.
	  	Further Assurances	  	8
	 Section 5.2.
	  	Conduct of Morrisville Facility Pending Closing	  	8
	 Section 5.3.
	  	Consummation of Transaction	  	8
	 Section 5.4.
	  	Public Announcements	  	9
	 Section 5.5.
	  	Location Survey/Metes and Bounds Description	  	9
	 Section 5.6.
	  	Commonwealth of Pennsylvania Department of Revenue Bulk Sales Clearance	  	9

  

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	 ARTICLE 6 CLOSING
	  	9
	 Section 6.1.
	  	Closing	  	9
	 Section 6.2.
	  	Conditions to Buyer’s Obligation to Close	  	10
	 Section 6.3.
	  	Conditions to Seller’s Obligation to Close	  	10
	 Section 6.4.
	  	Deliveries by Seller	  	11
	 Section 6.5.
	  	Deliveries by Buyer	  	12
		
	ARTICLE 7 TERMINATION	  	12
	 Section 7.1.
	  	Events Permitting Termination	  	12
	 Section 7.2.
	  	Effect of Termination	  	13
	 Section 7.3.
	  	Treatment of Down Payment	  	13
		
	ARTICLE 8 INDEMNIFICATION	  	13
	 Section 8.1.
	  	Survival	  	13
	 Section 8.2.
	  	Indemnification	  	14
	 Section 8.3.
	  	Procedures for Claims	  	15
	 Section 8.4.
	  	Other Provisions	  	17
	 Section 8.5.
	  	Environmental Matters	  	18
		
	ARTICLE 9 MISCELLANEOUS	  	20
	 Section 9.1.
	  	Notices	  	20
	 Section 9.2.
	  	General Definitions	  	21
	 Section 9.3.
	  	Entire Agreement; Amendment; Confidentiality Agreement	  	22
	 Section 9.4.
	  	Counterparts; Deliveries	  	23
	 Section 9.5.
	  	Third Parties	  	23
	 Section 9.6.
	  	Expenses	  	23
	 Section 9.7.
	  	Waiver	  	24
	 Section 9.8.
	  	Governing Law	  	24
	 Section 9.9.
	  	Assignments	  	24
	 Section 9.10.
	  	Headings	  	24
	 Section 9.11.
	  	Jurisdiction of Courts	  	24
	 Section 9.12.
	  	Waiver of Jury Trial	  	24
	 Section 9.13.
	  	Construction	  	24
	 Section 9.14.
	  	Knowledge	  	25
	 Section 9.15.
	  	Interpretive Matters	  	25
	 Section 9.16.
	  	Counterparts	  	25

  

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 INDEX OF DEFINED TERMS 
  

			
	 Term
	  	Section
	 Act of Acceleration
	  	8.5(b)
	 Affiliate
	  	9.2
	 Affiliated Group
	  	9.2
	 Agreement
	  	Preamble
	 Asset Purchase Agreement
	  	9.3
	 Assumed Liabilities
	  	1.3
	 Bulk Sales Statutes
	  	5.6
	 Buyer
	  	Preamble
	 Buyer Indemnified Parties
	  	8.2(a)
	 Buyer Principals
	  	Preamble
	 Cap
	  	8.2.(b)
	 CERCLA
	  	8.5(a)
	 Clearance Certificate
	  	5.6
	 Closing
	  	6.1
	 Closing Date
	  	6.1
	 Code
	  	9.2
	 Confidentiality Agreement
	  	9.3
	 Damages
	  	8.2(a)
	 Deductible
	  	8.2(b)
	 Down Payment
	  	2.2
	 Environment
	  	9.2
	 Environmental Actions
	  	8.5(b)
	 Environmental Laws
	  	9.2
	 Environmental Matters
	  	3.11
	 Escrow Agent
	  	2.2
	 Escrow Agreement
	  	2.2
	 Excluded Liabilities
	  	1.4
	 Existing Title Commitment
	  	1.5
	 Expenses
	  	9.6
	 GAAP
	  	9.2
	 Governmental Authority
	  	3.3
	 Hazardous Materials
	  	9.2
	 Indemnification Payment
	  	8.4(d)
	 Indemnified Party
	  	8.1
	 Indemnifying Party
	  	8.1
	 IRS
	  	9.2
	 Laws
	  	3.4(c)
	 Major Damage
	  	2.5(b)
	 Morrisville Facility
	  	Recitals
	 MSC
	  	Preamble
	 Occurrence Date
	  	2.5(b)

  

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	 Other Claim
	  	8.3(c)
	 Other Claim Notice
	  	8.3(c)
	 PA DOR
	  	5.6
	 Permitted Exceptions
	  	1.5
	 Permitted Liens
	  	9.2
	 Person
	  	9.2
	 Purchased Assets
	  	1.1
	 RCRA
	  	9.2
	 Real Property
	  	2.3(a)
	 Seller
	  	Preamble
	 Seller Indemnified Parties
	  	8.2(c)
	 Tax
	  	9.2
	 Tax Returns
	  	9.2
	 Third-Party Claim
	  	8.3(a)
	 Third-Party-Claim Notice
	  	8.3(a)
	 Transaction Document
	  	9.2
	 Transactions
	  	9.2
	 Valid Claim Notice
	  	8.1
	 Valid Other Claim Notice
	  	8.3(c)
	 Valid Third-Party Claim Notice
	  	8.3(a)

  

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 Exhibits 
 Exhibit A – Title Commitment 
 Exhibit B – Limited Partnership Agreement of Buyer 
 Schedules 
 Schedule 1.1 – Purchased Assets 

Schedule 3.3 – Required Consents and Approvals 
 Schedule 3.4 –
Violations 
 Schedule 3.6 – Litigation; Compliance with Laws 
  

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 REAL ESTATE PURCHASE AGREEMENT 
 THIS REAL ESTATE PURCHASE AGREEMENT (this “Agreement”), dated as of October 30, 2008, is by and among MSC Pre Finish Metals
(MV) Inc., a Delaware corporation (“Seller”), Material Sciences Corporation, a Delaware corporation (“MSC”); K. MATKEM of Morrisville, LP, a Pennsylvania limited partnership (the “Buyer”);
Theodorus A. Bus and James P. Bus (together, the “Buyer Principals”). 
 RECITALS 
 A. Seller owns and operates a coil coating facility located in Morrisville, Pennsylvania (the “Morrisville Facility”). 
 B. Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, all real property at the Morrisville Facility, on the terms and conditions
set forth herein. 
 In consideration of the mutual promises and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 ARTICLE 1 
 PURCHASE AND SALE OF ASSETS 
 Section 1.1. Purchased Assets. On the terms and subject to the conditions set forth in this Agreement, at the Closing, Seller agrees to sell, transfer, assign and deliver to Buyer, and Buyer agrees to purchase and assume
from Seller, all of Seller’s right, title and interest in and to the real property on which the Morrisville Facility is located and all improvements and fixtures thereon (the “Purchased Assets”) as more particularly described
on the legal description attached hereto and made a part hereof as Schedule 1.1, together with all of the Seller’s right, title and interest, if any, in and to the appurtenances pertaining thereto, including but not limited to
Seller’s right, title and interest in and to the adjacent streets, alleys and right-of-ways, and any easement rights, air rights, subsurface development rights and water rights, but excluding the Excluded Assets. 
 Section 1.2. Excluded Assets. Notwithstanding anything to the contrary herein, Seller shall not convey, assign or transfer to Buyer
pursuant to this Agreement any assets other than the Purchased Assets. 
 Section 1.3. Assumed Liabilities. Buyer shall
assume, agree to pay, perform and discharge the items apportioned to it pursuant to Section 2.4 (the “Assumed Liabilities”). 

 Section 1.4. Excluded Liabilities. Except for the Assumed Liabilities and as provided
in Section 8.5, in connection with this Agreement Buyer will not assume, agree to pay, perform or discharge, or in any way be responsible for, any debts (including interest and/or penalties thereon), liabilities or obligations of Seller
of any kind or nature whatsoever (the “Excluded Liabilities”). 
 Section 1.5. Liens and Encumbrances.
The sale of the Purchased Assets to be made by Seller to Buyer hereunder shall be subject to those title matters (the “Permitted Exceptions”) set forth in the title commitment, attached hereto and made a part hereof as Exhibit A
(the “Existing Title Commitment”). 
 ARTICLE 2 
 CONSIDERATION AND MANNER OF PAYMENT 
 Section 2.1. Purchase
Price. The aggregate consideration for the Purchased Assets shall be $4,600,000, as same may hereafter be adjusted pursuant to this Agreement (the “Purchase Price”). The Purchase Price shall be paid as set forth in this
Article 2. 
 Section 2.2. Payment of Purchase Price. Upon signing this Agreement, Buyer shall deliver to Wells
Fargo Bank, National Association (the “Escrow Agent”), by wire transfer of immediately available funds, an amount equal to $4,600,000 (the “Down Payment”), to be held pursuant to the terms of an escrow agreement
(the “Escrow Agreement”) among Buyer, Seller and the Escrow Agent, dated as of the date hereof. Subject to Section 7.3 (Treatment of Down Payment) if this Agreement is terminated, at the Closing, the Escrow Agent shall
pay the Down Payment, as adjusted pursuant to Section 2.3, to Seller. 
 Section 2.3. Purchase Price
Adjustment. At the time of Closing, the following liabilities shall be apportioned between Seller and Buyer, and the Purchase Price shall be adjusted accordingly: 
 (a) real estate taxes assessed against the real property included in the Purchased Assets (the “Real Property”) based
upon the amounts accruing through the Closing Date; 
 (b) water and sewer charges assessed against the Real Property based
upon the amounts accruing through the Closing Date; 
 (c) all other utility charges as of the Closing Date; and 

(d) if there are any confirmed or unconfirmed assessments for municipal improvements against the Real Property, Seller may elect to
have such assessments payable over the longest period permitted by the assessing authority, and such assessments shall be prorated based upon the amounts accruing through the Closing Date. 
 Section 2.4. Adjustment Time. All apportionments and adjustments shall be made as of 12:01 a.m. on the Closing Date. If after Closing,
the parties discover any errors in adjustments and apportionments, the same shall be corrected as soon after their discovery as possible. The provisions of this Section 2.4 shall survive the Closing, except that no adjustments shall be
made later than six months after the Closing Date unless prior to such date the party seeking the adjustment shall have delivered a written notice to the other specifying the nature and basis for such claim. 
  

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 Section 2.5. Risk of Loss. If, prior to the Closing, all or a material portion of the
Real Property is damaged by fire or other casualty, Seller shall promptly give Buyer written notice of such damage. 
 (a) If
such damage is not Major Damage (as hereinafter defined) then Buyer shall have the right at Closing to receive a credit against the Purchase Price in the amount of the deductible portion of Seller’s insurance (or such lesser amount as is equal
to the estimated cost of repair) plus all insurance proceeds received by Seller as a result of such loss, and an assignment of Seller’s rights to such insurance proceeds. This Agreement shall continue in full force and effect with no further
reduction in the Purchase Price, and Seller shall have no further liability or obligation to repair such damage or to replace the Real Property. 
 (b) If such damage occurs prior to Closing and the cost to repair such damage exceeds $3,000,000 or would materially interfere with the operation of the business (as conducted by Seller at the Morrisville Facility
prior to the Closing) (“Major Damage”), then Seller may, at its election (i) repair such damage and restore the Real Property to a condition that would permit operation of the business (as conducted by Seller at the Morrisville
Facility) in substantially the same manner as it operated prior to the damage, and the Closing shall be postponed until such repairs have been completed or (ii) terminate this Agreement in accordance with Section 7.1(e). Seller
shall provide written notice to Buyer of its election pursuant to this Section 2.5(b) within 30 days of the date on which Seller becomes aware that Major Damage has occurred (the “Occurrence Date”). If Seller elects to
repair such damage, but the Real Property has not been (or the Buyer and Seller agree that it cannot be) restored on or before the date that is six months after the Occurrence Date to a condition that would permit operation of the business (as
conducted by Seller at the Morrisville Facility) in substantially the same manner as it operated prior to the damage, then Buyer may, at its election, terminate this Agreement in accordance with Section 7.1(f). 
  

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 ARTICLE 3 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
 Seller hereby represents and warrants to Buyer that:

 Section 3.1. Organization; Good Standing. Seller is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite power and authority to own, lease and operate its assets, properties and business and to carry on its business as now being conducted. Seller is duly qualified or otherwise authorized as
a foreign entity to transact business in Pennsylvania and in each other jurisdiction in which the nature of its business or the location of the Purchased Assets requires it to so qualify. 
 Section 3.2. Authorization. Seller has all requisite corporate authority to execute, deliver and perform its obligations under this
Agreement and each Transaction Document to which Seller is a party and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the Transaction Documents to which Seller is a party, the
performance of its obligations hereunder and thereunder and the consummation by it of the Transactions have been duly authorized by all requisite action in accordance with applicable Law, and no other proceeding on the part of Seller is necessary.
This Agreement and the Transaction Documents to which Seller is a party have been duly executed and delivered by Seller and constitute the legal, valid and binding obligation of Seller enforceable against it in accordance with their respective
terms, except that such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or other similar Laws affecting or relating to creditors’ rights generally, and (b) the availability of injunctive relief
and other equitable remedies. 
 Section 3.3. Consents and Approvals. Except as set forth in Schedule 3.3, no
consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any multi-national, national, state, provincial, local, governmental, judicial, public, quasi-public, administrative or self-regulatory
authority, agency, commission, board, organization or instrumentality (collectively, “Governmental Authority”) or other Person is required to be made or obtained in connection with the authorization, execution, delivery and
performance by Seller of this Agreement and the Transaction Documents, or the consummation of the Transactions. 
 Section 3.4. No
Violation. The execution, delivery and performance by Seller of this Agreement and the Transaction Documents to which Seller is a party and the consummation by Seller of the Transactions do not and will not: 
 (a) conflict with or result in a violation of any provisions of the Certificate of Incorporation or By-Laws of Seller; 
 (b) except as set forth on Schedule 3.4, result in the breach of any of the terms or conditions of, or constitute (with or without
notice or lapse of time or both) a default under or an event which would give rise to any right of notice, modification, acceleration, payment, cancellation or termination under any mortgage, note, bond, indenture, contract, agreement, license or
other instrument or obligation of any kind or nature, in any case whether written or oral, by which the Purchased Assets will be adversely affected or which would have an adverse effect on Seller’s ability to perform its obligations under this
Agreement; 
  

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 (c) violate or conflict with any law, federal, state or local, order, permit, writ,
injunction, judgment, rule, regulation, statute, ordinance, treaty, constitution, directive, principle, code, order, decree or other decision of any court, administrative agency, or Governmental Authority (collectively, “Laws”); or

 (d) result in the creation or imposition of any Lien upon any Purchased Asset. 
 Section 3.5. Brokers or Finders. Neither Seller nor any Affiliate of Seller has retained any broker or finder, or made any statement
or representation to any Person that would entitle such Person to, or agreed to pay, any broker’s, finder’s or similar fees or commissions in connection with the Transactions. 
 Section 3.6. No Litigation; Compliance with Laws. 
 (a) Except as set forth on Schedule 3.6, there are no judgments against Seller, and there is no litigation or actions, suits,
proceedings, or investigations, either judicial or administrative, pending, or to Seller’s Knowledge, threatened in writing against or relating to or materially or adversely affecting the Purchased Assets or Seller’s ability to consummate
the Transactions. 
 (b) Except as set forth on Schedule 3.6, during the five years prior to Closing, Seller has not
received any written notice of any material violation of any Laws, ordinances, orders, rules, regulations, requirements, codes, covenants or restrictions, including without limitation as to use, zoning, occupancy, construction, administration,
health or safety, affecting any portion of the Real Property which remains uncorrected. 
 Section 3.7. Taxes. All Taxes
due and payable by Seller have been timely paid in full. Seller has timely filed all federal, state, county, local and foreign Tax Returns that it is required to have filed, and such returns are complete and correct in all material respects. There
are no Liens on any of the Purchased Assets that arose in connection with any failure (or alleged failure) to pay any Tax, other than Permitted Liens. 
 Section 3.8. Real Property. 
 (a) As of the date hereof, Seller has not
granted or entered into any leases, tenancies, licenses or other rights of present or future occupancy or use, written or oral, for any portion of the Real Property. 
 (b) The legal description of the Real Property is set forth on Schedule 1.1. To Seller’s Knowledge, there is no pending or
threatened condemnation or other governmental taking of the Real Property or any part thereof. To Seller’s Knowledge, there are no special, general or other assessments pending against Seller or affecting the Real Property that would be payable
by Seller. 
  

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 (c) No portion of the Real Property is, and Seller has not received any written notice
that, any portion of the Real Property is, subject to or affected by any condemnation, eminent domain or similar proceeding. 
 (d) Seller has not executed any other agreement of sale, option agreement, right of first refusal or right of first offer with respect to the Real Property. 
 (e) Seller is not a “foreign person” under the Foreign Investment in Real Property Tax Act of 1980 and, upon consummation of the
transactions contemplated hereby, Buyer will not be required to withhold from the Purchase Price any withholding tax. 
 (f)
Seller has provided Buyer with true, correct and complete copies of all structural, mechanical, electrical and environmental reports relating to the Real Property which are in Seller’s possession or control. 
 Section 3.9. Insurance. Seller has maintained and will maintain through the Closing Date insurance coverage for the Purchased Assets
in an amount not less than $5,000,000. 
 Section 3.10. Utilities. Seller represents that water, sewer, power, electric,
cable, gas, telephone, and all other utilities are available and servicing the Real Property; provided, however, that Buyer will have to open accounts with such utilities in Buyer’s name in order for such services to be available
to Buyer. 
 Section 3.11. Disclaimer of Other Representations and Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS
ARTICLE 3, THE PURCHASED ASSETS ARE BEING SOLD BY SELLER TO BUYER ON AN “AS-IS, WHERE-IS” BASIS. THE DISCLOSURE OF ANY MATTER OR ITEM IN ANY SCHEDULE HERETO SHALL NOT BE DEEMED TO CONSTITUTE A REPRESENTATION OR WARRANTY OR AN
ACKNOWLEDGEMENT THAT ANY SUCH MATTER IS REQUIRED TO BE DISCLOSED. SELLER MAKES NO OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, AT LAW OR EQUITY, REGARDING THE PURCHASED ASSETS, THE CONDITION OF THE PURCHASED ASSETS, OR THE REAL PROPERTY.
BUYER ACKNOWLEDGES THAT SELLER MAKES NO REPRESENTATIONS AND WARRANTIES PERTAINING TO ENVIRONMENTAL, HEALTH OR SAFETY MATTERS OR CONDITIONS, INCLUDING WITHOUT LIMITATION THOSE ARISING UNDER CERCLA OR ANY OTHER ENVIRONMENTAL LAWS, OR ANY OTHER
ENVIRONMENTAL MATTERS (“ENVIRONMENTAL MATTERS”): 
 ARTICLE 4 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer hereby represents and warrants
to Seller that: 
 Section 4.1. Buyer’s Organization. Buyer is a limited partnership duly organized and validly
existing under the laws of the Commonwealth of Pennsylvania. Buyer has the power and authority to own all of its properties and assets and to conduct its business, except where the failure to have such power would not have a material adverse effect
on its ability to consummate the Transactions. 
  

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 Section 4.2. Authorization. The execution and delivery of this Agreement and the
Transaction Documents to which Buyer is a party, the performance by Buyer of its obligations hereunder and thereunder and the consummation by Buyer of the Transactions have been duly authorized by all requisite corporate action in accordance with
applicable Law, and no other act or proceeding on the part of Buyer is necessary. Buyer has all requisite power and authority to enter into, execute and deliver this Agreement and the Transaction Documents to which it is a party and to perform its
obligations hereunder and thereunder. This Agreement and the Transaction Documents to which Buyer is a party have been duly executed and delivered by Buyer and constitute the valid and legally binding obligations of Buyer, enforceable in accordance
with their respective terms. 
 Section 4.3. Consents and Approvals. No consent, approval or authorization of, or
declaration, filing or registration with, or notice to, any Governmental Authority or other Person is required to be made or obtained by Buyer in connection with Buyer’s authorization, execution and delivery of this Agreement or the Transaction
Documents to which Buyer is a party, the performance by Buyer of its obligations hereunder and thereunder, and the consummation by Buyer of the Transactions. 
 Section 4.4. No Violation. The execution, delivery and performance by Buyer and the Buyer Principals of this Agreement and the Transaction Documents to which any of them is a party and the
consummation of the Transactions do not and will not: 
 (a) result in the breach of any of the terms or conditions of, or
constitute (with or without notice or lapse of time of both) a default under or an event which would give rise to any right of notice, modification, acceleration, payment, cancellation or termination under, or in any manner release any party thereto
from any obligation under, any mortgage, note, bond, indenture, contract, agreement, license or other instrument or obligation of any kind or nature by which Buyer or the Buyer Principals may be bound or affected which would have an adverse effect
on Buyer’s or the Buyer Principals’ ability to perform its obligations under this Agreement; 
 (b) violate any
Laws; or 
 (c) violate any provision of the certificate of incorporation or bylaws of Buyer. 
  

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 Section 4.5. No Brokers or Finders. Neither Buyer nor any Affiliate thereof has
retained any broker or finder, made any statement or representation to any Person that would entitle such Person to, or agreed to pay, any broker’s, finder’s or similar fees or commissions in connection with the Transactions. 

ARTICLE 5 
 COVENANTS OF THE
PARTIES 
 Section 5.1. Further Assurances. Each of the parties hereto agrees that subsequent to the Closing, upon the
reasonable request of any other party hereto from time to time, it shall execute and deliver, or cause to be executed and delivered, such further reasonable instruments and take such other commercially reasonable actions as may be necessary to carry
out the Transactions or to vest, perfect or confirm ownership of the Purchased Assets in Buyer. 
 Section 5.2. Conduct of
Morrisville Facility Pending Closing. Except (i) as set forth in this Agreement, (ii) as required by applicable Laws or (iii) with the prior written consent of Buyer (which consent shall not be unreasonably withheld, delayed
or conditioned), from and after the date hereof and prior to the Closing or such earlier date as this Agreement may be terminated in accordance with its terms, Seller shall not: 
 (a) sell, transfer, lease, license, pledge or encumber any of the Purchased Assets, except in the ordinary course of business; 

(b) enter into an agreement to do any of the foregoing, or to authorize, recommend or announce an intention to do any of the foregoing;
or 
 (c) intentionally take any other action or omit to take any other action that would cause the representations contained
in Article 3 to be untrue, as of the Closing, with respect to the period from the date of this Agreement through the Closing Date. 
 Section 5.3. Consummation of Transaction. Upon the terms and subject to the conditions set forth in this Agreement, each of the parties shall use its reasonable best efforts to take, or cause to be taken, all actions, and
to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective, as promptly as practicable, the Transactions in accordance with the terms of this
Agreement, including (i) the obtaining of all necessary approvals under any applicable Laws required in connection with this Agreement and the Transactions, (ii) the obtaining of all necessary actions or nonactions, waivers, consents,
approvals and authorizations from Governmental Authorities and the making of all necessary registrations and filings (including filings with Governmental Authorities) and the taking of all commercially reasonable steps as may be necessary to obtain
an approval or waiver from, or to avoid an action or proceeding by, any Governmental Authorities, (iii) the obtaining of all necessary waivers, consents, approvals and authorizations from third parties and (iv) the execution and delivery
of any additional instruments necessary to consummate the Transactions in accordance with the terms of this Agreement and fully to carry out the purposes of this Agreement; provided, however, that reasonable best efforts of Seller
shall not require Seller to expend any funds to obtain such waivers, consents, approvals, authorizations or the like from third parties, other than immaterial amounts for legal fees associated with obtaining the same. 
  

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 Section 5.4. Public Announcements. Prior to or at the Closing, any announcement
related to the Transactions shall be approved and agreed upon by Buyer and Seller, but neither Buyer nor Seller shall unreasonably withhold, delay or condition approval thereof. Thereafter, Buyer, on the one hand, and Seller, on the other hand,
shall, to the extent feasible, consult with each other before issuing, and provide each other reasonable opportunity to review and comment upon, any press release or other public statements with respect to the Transactions and shall not issue any
such press release or make any such public statement prior to such consultation, except as may be required by applicable Law. Buyer acknowledges that Seller must make press releases and filings as required by Law and that Seller must inform its
customers of the Transactions in order to facilitate an orderly transition of the business, and Buyer will cooperate with Seller with respect to these obligations. 
 Section 5.5. Location Survey/Metes and Bounds Description. During the term of this Agreement, Buyer shall have the right to obtain a survey of the Premises. If Buyer provides Seller with a location
survey of the Real Property that is prepared by a licensed surveyor and certified to Seller and Seller’s counsel prior to the Closing, Seller shall include in Seller’s deed a metes and bounds description of the Real Property that accords
with such survey. 
 Section 5.6. Commonwealth of Pennsylvania Department of Revenue Bulk Sales Clearance. As promptly as
is practical following the Closing Date, Seller shall apply to the Pennsylvania Department of Revenue (“PA DOR”) upon PA DOR Form REV-181 (or such successor form as is then prescribed by PA DOR) to obtain, with respect to the sale
of the Purchased Assets from Seller to Buyer pursuant to this Agreement, a Tax Clearance Certificate (the “Clearance Certificate”) pursuant to Section 1403 of the Pennsylvania Fiscal Code, 72 P.S. Sec. 1403 and
Section 321.1 of the Pennsylvania Tax Reform Code, 72 P.S. Sec. 7321.1 (collectively, the “Bulk Sales Statutes”). Seller shall thereafter diligently prosecute the application for the Clearance Certificate to successful
conclusion and the issuance of the Clearance Certificate (including the payment of all Taxes required to obtain the issuance of the Clearance Certificate) and shall deliver a copy of the Clearance Certificate to Buyer within 10 business days of
Seller’s receipt. 
 ARTICLE 6 
 CLOSING 
 Section 6.1. Closing. Subject to the terms and conditions set forth herein, the transactions
that are the subject of this Agreement shall be consummated at a closing (the “Closing”), which shall take place through an escrow, at the offices of the Title Insurer, 33 South Seventh Street, Allentown, PA 18105 on the first
business day after the date that is 30 days from the date hereof or as soon thereafter as practicable (but not more than three business days) following the satisfaction (or waiver) of the conditions to closing set forth in Sections 6.2 and
6.3 (other than conditions with respect to actions the parties will take at the Closing itself) or such other date as may be agreed to in writing by the parties hereto (the “Closing Date”). The Closing shall be deemed
effective at 11:59 p.m. on the Closing Date. 
  

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 Section 6.2. Conditions to Buyer’s Obligation to Close. The obligation of Buyer
to effect the Closing shall be subject to the satisfaction at or prior to the Closing of the following conditions, any one or more of which may be waived by Buyer: 
 (a) No Injunction. There shall not be in effect any injunction, order or decree of a court of competent jurisdiction that prohibits
or delays consummation of any material part of the Transactions, or that will require any material divestiture by Buyer as a result of Buyer’s acquisition of the Purchased Assets. 
 (b) Covenants. Seller shall have performed and complied in all material respects with the agreements contained in this Agreement
required to be performed and complied with by it prior to or at the Closing (except in each case for those agreements that are qualified as to “material,” “materiality,” “Material Adverse Change” or similar expressions,
which shall have been performed or complied with in all respects). 
 (c) Litigation. No action or proceeding shall
have been instituted by any Governmental Authority and, at what would otherwise have been the Closing Date, remain pending to restrain or prohibit any material part of the Transactions or to seek any material divestiture or to revoke or suspend any
material license, permit, order or approval by reason of any of the Transactions; nor shall any Governmental Authority have notified any party to this Agreement or any of their respective Affiliates that consummation of any material part of the
Transactions would constitute a violation of the laws of any jurisdiction or that it intends to commence an action or proceeding to restrain or prohibit any material part of the Transactions or to require such material divestiture, revocation or
suspension; unless, in either such case, such Governmental Authority shall have withdrawn such notice and abandoned such action or proceeding. 
 (d) Asset Purchase Agreement. The conditions to the obligation of Brightsmith, LLC to close the transactions contemplated by the Asset Purchase Agreement shall have been met, and the Asset Purchase Agreement
shall not have been terminated. Closing under this Agreement is conditioned upon simultaneous closing of, and shall simultaneously close with the closing of, the transactions contemplated by the Asset Purchase Agreement. 
 Section 6.3. Conditions to Seller’s Obligation to Close. The obligations of Seller to effect the Closing shall be subject to the
satisfaction at or prior to the Closing of the following conditions, any one or more of which may be waived by Seller: 
 (a)
No Injunction. There shall not be in effect any injunction, order or decree of a court of competent jurisdiction that prohibits or delays consummation of any material part of the Transactions. 
 (b) Covenants. Buyer shall have performed and complied in all material respects with the agreements contained in this Agreement
required to be performed and complied with by it prior to or at the Closing (except in each case for those agreements that are qualified as to “material,” “materiality,” “Material Adverse Change” or similar expressions,
which shall have been performed or complied with in all respects). 
  

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 (c) Litigation. No action or proceeding shall have been instituted by any
Governmental Authority and, at what would otherwise have been the Closing Date, remain pending to restrain or prohibit any material part of the Transactions or to seek any material divestiture or to revoke or suspend any material license, permit,
order or approval by reason of any of the Transactions; nor shall any Governmental Authority have notified any party to this Agreement or any of their respective Affiliates that consummation of any material part of the Transactions would constitute
a violation of the laws of any jurisdiction or that it intends to commence an action or proceeding to restrain or prohibit any material part of the Transactions or to require such material divestiture, revocation or suspension; unless, in either
such case, such Governmental Authority shall have withdrawn such notice and abandoned such action or proceeding. 
 (d)
Asset Purchase Agreement. The conditions to the Seller’s obligation to close the transactions contemplated by the Asset Purchase Agreement shall have been met, and the Asset Purchase Agreement shall not have been terminated. Closing
under this Agreement is conditioned upon simultaneous closing of, and shall simultaneously close with the closing of, the transactions contemplated by the Asset Purchase Agreement. 
 Section 6.4. Deliveries by Seller. At the Closing, Seller shall deliver or cause to be delivered to Buyer: 
 (a) Special Warranty Deed from Seller to Buyer conveying all of Seller’s right, title and interest in the Real Property subject to
the Permitted Exceptions, and other matters approved by Buyer in writing, together with such transfer tax declarations as are required in similar transactions; 
 (b) a certificate executed and delivered by the Secretary of Seller in form and substance reasonably satisfactory to Buyer, attesting and
certifying as to: (i) the certificate of incorporation (as also certified as of a recent date by the Secretary of the State of the State of Delaware); (ii) copies of resolutions of the board of directors and sole stockholder of Seller
authorizing the Transactions to which Seller is a party; and (iii) incumbency and specimen signature certificates with respect to the representatives of Seller; 
 (c) a certificate, executed by an authorized officer of Seller, certifying that the conditions specified in Section 6.2(b)
have been fulfilled; 
 (d) certificate of good standing of Seller issued not earlier than 15 days prior to the Closing Date
by the Secretaries of State of the States of Delaware and Pennsylvania; 
 (e) all documents required by the Title Insurer;

 (f) a non-foreign affidavit dated as of the Closing Date from Seller, sworn under penalty of perjury and in form and
substance required under the Treasury Regulations issued pursuant to Section 1445 of the Code stating that Seller is not a “foreign person” as defined in Section 1445 of the Code; 
  

 11 

 (g) keys to the Morrisville Facility; and 
 (h) such other documents and instruments as Buyer may reasonably require in order to effectuate the transactions that are the subject of
this Agreement. 
 All documents and instruments delivered to Buyer shall be in form and substance reasonably satisfactory to Buyer.

 Section 6.5. Deliveries by Buyer. At the Closing, Buyer shall deliver or cause to be delivered to Seller: 

(a) federal funds wire transfer(s) in accordance with Section 2.2; 
 (b) a certificate, executed and delivered by the General Partner of Buyer in form and substance reasonably satisfactory to Seller,
attesting and certifying as to: (i) a copy of the Certificate of Limited Partnership of Buyer, (ii) a copy of the Limited Partnership Agreement of Buyer, in the form attached hereto as Exhibit B, (iii) copies of the certificate
of formation and operating agreement of the General Partner of Buyer and (iv) incumbency and specimen signature certificates with respect to the individuals who may properly sign legal documents on behalf of Buyer; 
 (c) a certificate of good standing of Buyer issued not earlier than 15 days prior to the Closing Date from the Secretary of State of
Pennsylvania; 
 (d) a certificate, executed by an authorized officer of Buyer, certifying that the conditions specified in
Section 6.3(b) have been fulfilled; 
 (e) an insured closing letter from Stewart Title Guaranty Company; and

 (f) such other documents and instruments as Seller may reasonably require in order to effectuate the transactions that are
the subject of this Agreement. 
 All documents and instruments delivered to Seller shall be in form and substance reasonably satisfactory to
Seller. 
 ARTICLE 7 
 TERMINATION 
 Section 7.1. Events Permitting Termination. This Agreement may be terminated by written
notice given to all parties hereto prior to the Closing in the manner hereinafter provided: 
 (a) At any time prior to the
Closing Date by agreement in writing between the parties; 
 (b) By Buyer or Seller if the Closing shall not have occurred on
or before the date that is 60 days from the date hereof (or such other date as may have been agreed upon in writing by Buyer and Seller), other than as a result of the terminating party’s default hereunder; provided, however, that
if Major Damage has occurred, the parties’ termination rights shall be governed by Sections 2.5(b), 7.1(e) and 7.1(f), and neither Buyer nor Seller shall have a right to terminate under this Section 7.1(b);

  

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 (c) By Buyer, provided it is not then in breach of its obligations hereunder, if Seller
fails to perform any covenant in this Agreement in any material respect when performance thereof is due and has failed to cure such breach within 10 business days after receipt by Seller of written notice of such breach from Buyer; 
 (d) By Seller, provided it is not then in breach of its obligations hereunder, if Buyer fails to perform any covenant in this Agreement in
any material respect when performance thereof is due and has failed to cure such breach within 10 business days after receipt by Buyer of written notice of such breach from Seller; 
 (e) By Seller, if Major Damage occurs after the date hereof and prior to the Closing Date; or 
 (f) By Buyer, if Major Damage occurs after the date hereof and prior to the Closing Date and the Real Property has not been (or the Buyer
and Seller agree that it cannot be) restored on or before the date that is six months after the Occurrence Date to a condition that would permit operation of the business (as conducted by Seller at the Morrisville Facility) in substantially the same
manner as it operated prior to the damage. 
 Section 7.2. Effect of Termination. The rights of termination under
Section 7.1 are in addition to any other rights Buyer or Seller may have under this Agreement and the exercise of a right of termination will not be an election of remedies. If this Agreement is terminated pursuant to
Section 7.1, all further obligations of Buyer and Seller under this Agreement will terminate, except that Article 8, Sections 9.8, 9.11 and 9.12 shall survive the termination of this Agreement; provided that
(a) if this Agreement is terminated by Buyer because of a breach of this Agreement by Seller or because one or more of the conditions to Buyer’s obligations to consummate the Transactions under this Agreement is not satisfied as a result
of Seller’s failure to comply with its obligations under this Agreement, Buyer’s right to pursue all available remedies at law (consistent with this Agreement) shall survive such termination unimpaired; and (b) if this Agreement is
terminated by Seller because of a breach of this Agreement by Buyer or because one or more of the conditions to the Seller’s obligations to consummate the Transactions under this Agreement is not satisfied as a result of Buyer’s failure to
comply with its obligations under this Agreement, Seller’s right to pursue remedies (consistent with this Agreement) shall survive such termination unimpaired. 
 Section 7.3. Treatment of Down Payment. If this Agreement is terminated pursuant to Section 7.1(a), (b), (c), (e) or (f), the Down Payment shall be promptly
returned to Buyer. If this Agreement is terminated pursuant to Section 7.1(d), the Down Payment shall be promptly paid to Seller. 
 ARTICLE 8 
 INDEMNIFICATION 
 Section 8.1. Survival. The representations and warranties made in this Agreement or in any Transaction Document shall survive the Closing until the close of business on the date that is 18 months
after the Closing Date and shall thereupon expire, together with 

  

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any right to indemnification for breach thereof, except to the extent a Valid Third Party Claim Notice or Valid Other Claim Notice (each a “Valid
Claim Notice”) shall have been given prior to such date in accordance with this Article 8 by the party seeking indemnification under this Agreement (the “Indemnified Party”) to the party from whom indemnification is
being sought under this Agreement (the “Indemnifying Party”), in which case the representation or warranty alleged in the Valid Claim Notice to have been breached shall survive, to the extent of the claim set forth in the Valid
Claim Notice only, until such claim is resolved; provided, however, that the representations and warranties set forth in Sections 3.1 (Organization; Good Standing), 3.2 (Authorization), 3.3 (Consents and Approvals), 3.4
(No Violation) and 3.5 (Brokers or Finders) and Article 4, together with any right to indemnification for breach thereof, shall survive the Closing until the close of business on the 60th calendar day following the expiration of the applicable statute of limitations. The covenants and agreements contained herein (other than the covenant and agreement to indemnify
against breach of representations and warranties, which shall expire as set forth in the first sentence of this Section 8.1) shall survive the Closing until the expiration of the applicable statute of limitations. 
 Section 8.2. Indemnification. 
 (a) Subject to this Article 8 and consummation of the Closing, Seller and MSC, jointly and severally, shall indemnify Buyer and its Affiliates and each of their respective present and future directors,
officers, agents, representatives and employees (collectively, the “Buyer Indemnified Parties”) and hold them harmless from and against any losses, claims, damages, liabilities, costs or expenses (including reasonable
attorneys’ fees and disbursements) (collectively, “Damages”), that are incurred or suffered by any of them by reason of (i) the untruth or inaccuracy of any of the representations or warranties made by Seller in this
Agreement, (ii) the failure by Seller to perform or comply with any covenant or agreement in this Agreement, (iii) any Taxes imposed on Seller with respect to any period (or portion of any period) ending on or before the Closing Date and
any Taxes imposed on Seller with respect to the Transactions, except as provided in Section 2.3 or Section 9.6 or (iv) any unpaid Taxes (except as provided in Section 2.3 or Section 9.6) owed by
Seller to the Commonwealth of Pennsylvania in respect of taxable periods to and including the Closing Date, whether or not at that time such Taxes have been settled, assessed or determined, and for which the PA DOR holds Buyer liable under the Bulk
Sales Statutes by reason of Seller’s failure to procure and present to Buyer on or before the Closing Date, a PA DOR Clearance Certificate. 
 (b) Any recovery by the Buyer Indemnified Parties for indemnification shall be limited as follows: (i) no Buyer Indemnified Party shall be entitled to any recovery unless a claim for indemnification is made in
accordance with Section 8.3, so as to constitute a Valid Claim Notice, and within the time period of survival set forth in Section 8.1; (ii) no Buyer Indemnified Parties shall be entitled to recover any amount for
indemnification claims under Section 8.2(a) unless and until the amount that the Buyer Indemnified Parties are entitled to recover in respect of such claims exceeds, in the aggregate, $150,000 (the “Deductible”), in
which event (subject to clause (iii) below) the entire amount that the Buyer Indemnified Parties are entitled to recover in respect of such claims less the Deductible shall be payable; and (iii) the maximum amount recoverable by the Buyer

  

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Indemnified Parties for indemnification claims under Section 8.2(a) shall in the aggregate be equal to 25% of the Purchase Price (the
“Cap”). No Damages shall be included in determining whether the Deductible has been reached unless a Valid Claim Notice seeking indemnification for such Damages has been given by a Buyer Indemnified Party to Seller in accordance
with Section 8.3. Notwithstanding the foregoing, the Deductible and the Cap shall not apply to claims arising out of a breach of the representations and warranties in Section 3.7 and claims described in clauses
(iii) and (iv) of Section 8.2(a). 
 (c) Buyer and the Buyer Principals, jointly and
severally, shall indemnify Seller and its Affiliates and each of their respective present and future directors, officers, agents, representatives and employees (collectively, the “Seller Indemnified Parties”) and hold each of them
harmless from and against all Damages that are incurred or suffered by any of them by reason of (i) the untruth or inaccuracy of any of the representations or warranties made by Buyer in this Agreement or (ii) the failure by Buyer to
perform or comply with any covenants or agreement in this Agreement. Seller shall not be entitled to any recovery unless a claim for indemnification is made in accordance with Section 8.3, so as to constitute a Valid Claim Notice, and
within the time period of survival set forth in Section 8.1. 
 (d) Any recovery by the Seller Indemnified Parties
for indemnification shall be limited as follows: (i) no Seller Indemnified Party shall be entitled to any recovery unless a claim for indemnification is made in accordance with Section 8.3, so as to constitute a Valid Claim Notice,
and within the time period of survival set forth in Section 8.1; (ii) no Seller Indemnified Parties shall be entitled to recover any amount for indemnification claims under Section 8.2(c)(i), unless and until the amount
that the Seller Indemnified Parties are entitled to recover in respect of such claims exceeds, in the aggregate, the Deductible, in which event (subject to clause (iii) below) the entire amount that the Seller Indemnified Parties are entitled
to recover in respect of such claims less the Deductible shall be payable; and (iii) the maximum amount recoverable by the Seller Indemnified Parties for indemnification claims under Section 8.2(c)(i), shall in the aggregate be
equal to the Cap. No Damages shall be included in determining whether the Deductible has been reached unless a Valid Claim Notice seeking indemnification for such Damages has been given by a Seller Indemnified Party to Buyer in accordance with
Section 8.3. 
 Section 8.3. Procedures for Claims. 
 (a) In order for an Indemnified Party to be entitled to any indemnification provided for under this Article 8 in respect of,
arising out of or involving a claim made by any third party against the Indemnified Party (a “Third-Party Claim”), the Indemnified Party must notify the Indemnifying Party in writing of the Third-Party Claim (a
“Third-Party-Claim Notice”) promptly following receipt by such Indemnified Party of written notice of the Third-Party Claim, which notification, to be a valid Third-Party Claim Notice, with the effect set forth in Sections
8.1 and 8.2 (a “Valid Third-Party Claim Notice”), must be accompanied by a copy of the written notice, if any, of the third party claimant to the Indemnified Party asserting the 

  

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Third-Party Claim; provided, that the failure to provide such notice promptly (so long as a Valid Third-Party Claim Notice is given before the expiration of
the applicable period set forth in Section 8.1) shall not affect the obligations of the Indemnifying Party hereunder except to the extent the Indemnifying Party is prejudiced thereby. The Indemnified Party shall deliver to the
Indemnifying Party copies of all other notices and documents (including court papers), if any, received by the Indemnified Party relating to the Third-Party Claim. 
 (b) The Indemnifying Party shall have the right to defend against any such Third-Party Claim (including to conduct any proceedings or
settlement negotiations) with counsel of its own choosing. The Indemnified Party shall have the right to participate in the defense of any Third-Party Claim (including the right to participate in any settlement negotiations) and to employ its own
counsel (it being understood that the Indemnifying Party shall control such defense and settlement negotiations), at its own expense, provided, however, that if the Indemnified Party reasonably concludes, based on advice from counsel,
that the Indemnifying Party and the Indemnified Party have adversely conflicting interests with respect to such Third-Party Claim, the reasonable fees and expenses of counsel to the Indemnified Party solely in connection therewith shall be
considered “Damages” for purposes of this Agreement; provided, however, that in no event shall the Indemnifying Party be responsible for the fees and expenses of more than one counsel for all Indemnified Parties.
Whether or not the Indemnified Party participates in the defense of any Third-Party Claim, the Indemnified Party shall be entitled to reasonable notice of all court appearances and settlement negotiations and, to the extent requested by the
Indemnified Party, copies of all proceedings filed with any Governmental Authority in connection with such Third-Party Claim. Prior to the time the Indemnified Party is notified by the Indemnifying Party as to whether the Indemnifying Party will
assume the defense of a Third-Party Claim, the Indemnified Party shall take all actions reasonably necessary to timely preserve the collective rights of the parties with respect to such Third-Party Claim, including responding timely to legal
process. If the Indemnifying Party shall decline to assume the defense of a Third-Party Claim (or shall fail to notify the Indemnified Party of its election to defend such Third-Party Claim) within 30 days after the giving by the Indemnified Party
to the Indemnifying Party of a Valid Third-Party Claim Notice with respect to the Third Party Claim, the Indemnified Party shall defend against the Third-Party Claim and the Indemnifying Party shall be liable to the Indemnified Party for all
reasonable fees and expenses incurred by the Indemnified Party in the defense of the Third-Party Claim, including the reasonable fees and expenses of counsel employed by the Indemnified Party, if and to the extent that the Indemnifying Party is
responsible to indemnify for such Third-Party Claim, and such fees and expenses shall be considered “Damages” for purposes of this Agreement. Regardless of which party assumes the defense of a Third-Party Claim, the parties agree to
cooperate with one another in connection therewith. Such cooperation shall include providing records and information that are relevant to such Third-Party Claim, and making employees and officers available on a mutually convenient basis to provide
additional information and explanation of any material provided hereunder and to act as a witness or respond to legal process. Whether or not the Indemnifying Party assumes the defense of a Third-Party Claim, the Indemnified Party shall not admit
any liability, consent to the entry of judgment with respect to, or settle, compromise or discharge, such Third-Party Claim 

  

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without the Indemnifying Party’s prior written consent. If the Indemnifying Party assumes the defense of any Third-Party Claim, the Indemnifying Party
shall have the right to consent to the entry of judgment with respect to, or otherwise settle, compromise or discharge, such Third-Party Claim; provided, however, that the Indemnifying Party shall not, without the prior written consent
of the Indemnified Party (which consent shall not be unreasonably withheld, delayed or conditioned), consent to the entry of judgment with respect to, or otherwise settle, compromise or discharge, any Third-Party Claim if such judgment, settlement,
compromise or discharge involves equitable or other non-monetary damages or otherwise requires the Indemnified Party or any of its Affiliates to pay any amount to any Person, including the Indemnifying Party, or to take any action or refrain from
taking any action (other than the execution of a customary release or covenant not to sue). 
 (c) In order for an Indemnified
Party to be entitled to any indemnification provided for under this Article 8 in respect of a claim that does not involve a Third-Party Claim being asserted against such Indemnified Party (an “Other Claim”), the Indemnified
Party must promptly notify the Indemnifying Party in writing of such Other Claim (the “Other Claim Notice”), which notification, to be a Valid Other Claim Notice, with the effect set forth in Sections 8.1 and 8.2 (a
“Valid Other Claim Notice”), must certify that the Indemnified Party has in good faith already sustained some (though not necessarily all) Damages with respect to such claim. The failure by any Indemnified Party to notify the
Indemnifying Party promptly (so long as a Valid Other Claim Notice is given before the expiration of the applicable period set forth in Section 8.1) shall not relieve the Indemnifying Party from any liability that it may have to such
Indemnified Party under Section 8.2, except to the extent that the Indemnifying Party has been prejudiced by such failure. If the Indemnifying Party does not notify the Indemnified Party in writing within 60 days from its receipt
of an Other Claim Notice that the Indemnifying Party disputes such Other Claim, the Other Claim specified by the Indemnified Party in the Other Claim Notice shall be deemed a liability of the Indemnifying Party hereunder and, within 20 days of such
date shall be paid by the Indemnifying Party to the Indemnified Party. Any final and non-appealable judgment entered or settlement agreed upon with respect to a Other Claim shall be binding upon the Indemnifying Party and shall be paid within 10
days of the date of the relevant final judgment or settlement agreement. 
 Section 8.4. Other Provisions.

 (a) Exclusive Remedy. Except in case of fraud, the right to the indemnification provided in this Article
8 shall be the sole and exclusive monetary remedy for any inaccuracy or breach of any representation or warranty made by Seller or Buyer in this Agreement; provided, however, nothing herein shall be construed as limiting the rights of the
Indemnified Parties with respect to seeking equitable or injunctive relief with respect to any covenant or agreement as expressly provided in this Agreement. 
  

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 (b) Adjustment to Purchase Price. All amounts payable by one party in
indemnification of the other shall be treated as an adjustment to the Purchase Price by Buyer, Seller and their respective Affiliates, to the extent permitted by law. 
 (c) Certain Damages. In no event shall Seller be liable for loss of profits or consequential damages incurred by Buyer in
connection with an Other Claim. 
 (d) Subrogation. Upon making any payment to an Indemnified Party for any
indemnification claim under this Agreement, the Indemnifying Party shall be subrogated, to the extent of such payment (an “Indemnification Payment”), to any rights which the Indemnified Party or its Affiliate may have against any
other parties (including under any insurance policies) with respect to the subject matter underlying such indemnification claim. The Indemnified Party and its Affiliates shall cooperate with the Indemnifying Party in the pursuit of such rights and
shall promptly turn over to the Indemnifying Party any payments (up to the amount of the Indemnification Payment) received in respect of such rights. 
 (e) Compliance with Laws after Closing. Notwithstanding anything in this Agreement to the contrary, Seller shall have no liability for any failure by Buyer or any of its Affiliates to comply with applicable law
after the Closing by reason of the business being operated after the Closing in the manner operated prior to the Closing; provided, however, that nothing in this sentence shall affect Seller’s obligations under this Agreement with respect to
the period before the Closing. 
 Section 8.5. Environmental Matters. 
 (a) Buyer (on its own behalf and on behalf of its Affiliates and the successors and assigns of any of the foregoing) each hereby waives
any right to seek contribution or other recovery from Seller or from any of its Affiliates that any of them may now or in the future ever have under any Environmental Laws, including, without limitation, 42 U.S.C. §§ 9607 and 9613(f) of
the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), as such laws were in the past or are currently in effect, or may in the future be enacted or be in effect. Buyer (on its own behalf and on behalf
of its Affiliates and the successors and assigns of any of the foregoing) each hereby further unconditionally releases Seller and its Affiliates from any and all claims, demands and causes of action that any of them may now or in the future ever
have against Seller or any of its Affiliates for recovery under CERCLA or under any other Environmental Laws as such laws were in the past or are currently in effect, or may in the future be enacted or be in effect. 
 (b) UPON THE CLOSING, BUYER SHALL ASSUME THE RISK THAT ADVERSE ENVIRONMENTAL MATTERS, MAY NOT HAVE BEEN REVEALED BY SELLER’S OR
BUYER’S INVESTIGATIONS, AND BUYER SHALL BE DEEMED TO HAVE WAIVED, RELINQUISHED AND RELEASED SELLER FROM AND AGAINST ANY AND ALL CLAIMS, DEMANDS, CAUSES OF ACTION (INCLUDING CAUSES OF ACTION IN TORT), LOSSES, DAMAGES, LIABILITIES, COSTS AND
EXPENSES (INCLUDING ATTORNEYS’ FEES AND COURT COSTS) OF ANY AND 

  

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EVERY KIND OR CHARACTER, KNOWN OR UNKNOWN, WHICH BUYER OR ANY OTHER PERSON OR ENTITY MIGHT HAVE ASSERTED OR ALLEGED AGAINST SELLER AT ANY TIME BY REASON OF
OR ARISING OUT OF MATTERS REGULATED UNDER OR FOR WHICH LIABILITY MAY EXIST UNDER ENVIRONMENTAL LAWS. BUYER AGREES THAT SHOULD ANY INVESTIGATION, CLEANUP, REMEDIATION, CORRECTIVE ACTION OR REMOVAL OF HAZARDOUS SUBSTANCES OR OTHER ENVIRONMENTAL
CONDITIONS IN ANY WAY PERTAINING TO THE PROPERTY (INCLUDING ANY PAYMENTS, FINES OR PENALTIES PERTAINING THERETO) (COLLECTIVELY, “ENVIRONMENTAL ACTIONS”), BE REQUIRED AFTER THE CLOSING, SUCH ENVIRONMENTAL ACTIONS SHALL BE THE
RESPONSIBILITY OF AND SHALL BE PERFORMED AT THE SOLE COST AND EXPENSE OF BUYER. IN ADDITION AND NOT BY WAY OF LIMITING THE FOREGOING, SELLER SHALL HAVE NO LIABILITY FOR ANY POST-CLOSING LIABILITIES RESULTING IN WHOLE OR IN PART FROM ACTIONS
UNDERTAKEN OR ALLOWED BY BUYER, INCLUDING WITHOUT LIMITATION ENVIRONMENTAL INVESTIGATIONS OR TESTING OF ANY SORT, THAT REASONABLY COULD BE ANTICIPATED TO ACCELERATE THE TIMING OF A CLAIM ARISING FROM OR IN CONNECTION WITH THE PRESENCE OF HAZARDOUS
MATERIALS ON, IN, UNDER OR AROUND THE REAL PROPERTY ON WHICH THE MORRISVILLE FACILITY IS LOCATED (“ACT OF ACCELERATION”). ACTS OF ACCELERATION SHALL INCLUDE, WITHOUT LIMITATION, SOLICITING OR CONTACTING A GOVERNMENTAL AUTHORITY TO
OBTAIN OR REQUEST THE ISSUANCE OF AN ORDER OR DIRECTIVE REGARDING THE DISCLOSURE, INVESTIGATION OR REMEDIATION OF HAZARDOUS MATERIALS OR ANY OTHER REMOVAL OR REMEDIAL ACTION. NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, BUYER ASSUMES ALL
OBLIGATIONS, AND SELLER SHALL HAVE NO DUTY TO INDEMNIFY OR DEFEND BUYER INDEMNIFIED PARTIES, FOR ANY DAMAGES RESULTING FROM OR IN CONNECTION WITH AN ACT OF ACCELERATION OR ANY CONDITION DISCOVERED AS A RESULT THEREOF. NOTWITHSTANDING THE FOREGOING,
SELLER AND NOT BUYER SHALL BE RESPONSIBLE FOR ENVIRONMENTAL ACTIONS BROUGHT AGAINST SELLER WITH RESPECT TO ACTIVITIES OCCURRING OR CONDITIONS EXISTING PRIOR TO CLOSING IF SUCH ENVIRONMENTAL ACTIONS ARE NOT THE RESULT, IN WHOLE OR IN PART, OF ACTIONS
UNDERTAKEN (DIRECTLY OR INDIRECTLY) OR ALLOWED BY BUYER OR THE BUYER PRINCIPALS. 
  

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 ARTICLE 9 
 MISCELLANEOUS 
 Section 9.1. Notices. All notices, reports, records or other
communications that are required or permitted to be given to the parties under this Agreement shall be sufficient in all respects if given in writing and delivered in person, by facsimile, by email, by overnight courier or by registered or certified
mail, postage prepaid, return receipt requested, to the receiving party at the following address: 
  

					
	If to Seller or MSC:	    	Material Sciences Corporation
		    	2200 East Pratt Blvd.
		    	Elk Grove Village, IL 60007
		    	Email:	 	jim.froisland@matsci.com
		    		 	steve.hamilton@matsci.com
		    	Attn:	 	Jim Froisland
		
	with a copy to:	    	Katten Muchin Rosenman LLP
		    	525 West Monroe Street
		    	Chicago, Illinois 60661-3693
		    	Facsimile:	 	(312) 902-1061
		    	Email:	 	matthew.brown@kattenlaw.com
		    		 	nancy.stern@kattenlaw.com
		    	Attn:	 	Matthew S. Brown, Esq.
		    		 	Nancy Laethem Stern, Esq.
		
	If to Buyer	    	c/o ATAS International Inc.
	or the Buyer Principals:	    	6612 Snowdrift Road
		    	Allentown, PA 18106
		    	Facsimile:	 	(610) 395-9342
		    	Email:	 	dbus@atas.com
		    	Attn:	 	Theodorus A. Bus, President
		
	with a copy to:	    	Gross, McGinley, LaBarre & Eaton, LLP
		    	33 South Seventh Street, P.O. Box 4060
		    	Allentown, PA 18105
		    	Attn:	 	Michael A. Henry, Esq.
		    	Facsimile:	 	(610) 820-6006
		    	Email:	 	mhenry@gmle.com

 or such other address as such party may have given to the other parties by notice pursuant to this
Section 9.1. Notice shall be deemed given on (i) the date such notice is personally delivered, (ii) three days after the mailing if sent by certified or registered mail, (iii) one business day after the date of delivery to
the overnight courier if sent by overnight courier, or (iv) the next succeeding business day after transmission by facsimile or email, followed by mail delivery. 
  

 20 

 Section 9.2. General Definitions. For the purposes of this Agreement, the following
terms have the meaning set forth below: 
 “Affiliate” means, with respect to any Person, any other Person directly or
indirectly controlling, controlled by, or under common control with such Person, and any officer, director or executive employee of such Person, and includes any past or present Affiliate of any such Person. The term “control” (including,
with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, includes the possession, directly or indirectly, of 5% or more of the total number of votes
which may be cast by the holders of the total number of outstanding shares of stock of any class or classes of such Person in any election of directors of such Person (or in the case of a Person which is not a corporation, 5% or more of the
ownership interest, beneficial or otherwise) of such Person or the power otherwise to direct or cause the direction of the management and policies of that Person, whether through voting, by contract or otherwise. 
 “Affiliated Group” means an affiliated group as defined in Section 1504 of the Code (or analogous combined, consolidated or unitary
group defined under state, local or foreign income Tax law). 
 “Code” means the Internal Revenue Code of 1986, as amended.

 “Environment” means soil, land surface or subsurface strata, surface waters (including navigable waters, ocean waters,
streams, ponds, drainage basins and wetlands), groundwaters, drinking water supply, stream sediments, ambient air (including indoor air), plant and animal life and any other environmental medium or natural resource. 
 “Environmental Laws” means any Law that requires or relates to: pollution or protection of human health and the Environment. 

“GAAP” means generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as may be approved by a significant segment of the accounting
profession that are applicable to the circumstances from time to time. 
 “Hazardous Materials” means (i) hazardous
substances, as defined by CERCLA; (ii) hazardous wastes as defined by RCRA; (iii) petroleum, including without limitation, crude oil or any fraction thereof which is liquid at standard conditions of temperature and pressure; (iv) any
radioactive material, including, without limitation, any source, special nuclear, or by-product material as defined in 42 U.S.C. §2011 et seq.; (v) asbestos in any form or condition; (vi) polychlorinated biphenyls; and (vii) any
other material, substance or waste to which liability or standards of conduct are imposed under any Environmental Laws. 
 “IRS” means the Internal Revenue Service of the United States. 
 “Permitted Liens” means
(a) materialmen’s, mechanics’, carriers’, workmen’s, warehousemen’s, repairmen’s and other like Liens arising in the ordinary course of business and (b) Liens for Taxes not yet due and payable, or being
contested in good faith by appropriate proceedings. 
  

 21 

 “Person” means any individual, sole proprietorship, partnership, limited liability
company, joint venture, trust, unincorporated association, corporation or other entity or any Governmental Authority. 
 “RCRA” means the Resource Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. 
 “Tax”
means any multi-national, federal, state, local, municipal or foreign income, gross receipts, franchise, estimated, alternative minimum, add-on minimum, sales, use, transfer, registration, value added, excise, natural resources, sewer charges, sewer
taxes, entertainment, amusement, severance, stamp, occupation, premium, windfall profit, environmental, customs, duties, real property, personal property, ad valorem, capital stock, social security, unemployment, disability, payroll,
license, employee or other withholding, or other tax, of any kind whatsoever, including any interest, penalties or additions to Tax or additional amounts in respect of the foregoing; the foregoing shall include any transferee or secondary liability
for a Tax and any liability assumed by agreement or arising as a result of being (or ceasing to be) a member of any Affiliated Group (or being included (or required to be included) in any Tax Return relating thereto). 
 “Tax Returns” means returns, declarations, reports, claims for refund, information returns or other documents (including any related or
supporting schedules, statements or information) filed or required to be filed in connection with the determination, assessment or collection of any Tax of any party or the administration of any laws, regulations or administrative requirements
relating to any Tax. 
 “Transaction Document” means any written agreement, document, certificate or instrument delivered
pursuant to or in connection with this Agreement. 
 “Transactions” means the transactions contemplated by the Transaction
Documents. 
 Section 9.3. Entire Agreement; Amendment; Confidentiality Agreement. This Agreement, including the exhibits
and schedules hereto, the Transactions Documents and the instruments and agreements executed in connection herewith and therewith contain all of the terms, conditions and representations and warranties agreed upon by the parties relating to the
subject matter of this Agreement and supersede all prior and contemporaneous agreements, negotiations, correspondence, undertakings and communications of the parties, oral or written, respecting such subject matter, except for (a) the
Confidentiality and Non-Disclosure Agreement dated as of April 7, 2008 by and among ATAS International, Inc., Theodorus A. Bus, James P. Bus and Seller (the “Confidentiality Agreement”) and (b) the Asset Purchase Agreement
dated as of the date hereof among Seller, MSC, Brightsmith, LLC and the Buyer Principals (the “Asset Purchase Agreement”). This Agreement shall not be amended or modified except by an agreement in writing duly executed by each of
the parties hereto. Buyer shall, and shall cause its officers, directors, employees, Affiliates, financial advisors and agents to, comply with the provisions of the Confidentiality Agreement with respect to information received prior to the Closing,
and the provisions of the Confidentiality Agreement are hereby incorporated herein by reference with the same effect as if fully set forth herein. 
  

 22 

 Section 9.4. Counterparts; Deliveries. This Agreement may be executed simultaneously
in counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement, the Transaction Documents and each other agreement or instrument entered into in connection herewith
or therewith or contemplated hereby or thereby, and any amendments hereto or thereto, to the extent signed and delivered by means of a facsimile machine or other electronic transmission, shall be treated in all manner and respects and for all
purposes as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto or to any such agreement or
instrument, each other party hereto or thereto shall re-execute original forms thereof and deliver them to all other parties, except that the failure of any party to comply with such a request shall not render this Agreement invalid or
unenforceable. No party hereto or to any such agreement or instrument shall raise the use of a facsimile machine or other electronic transmission to deliver a signature or the fact that any signature or agreement or instrument was transmitted or
communicated through the use of a facsimile machine or other electronic transmission as a defense to the formation or enforceability of a contract and each such party forever waives any such defense. 
 Section 9.5. Third Parties. Nothing in this Agreement, express or implied, is intended to confer any right or remedy under or by
reason of this Agreement on any Person other than the parties signatory hereto, the Buyer Indemnified Parties, the Seller Indemnified Parties and their respective heirs, representatives, successors and assigns, nor is anything set forth herein
intended to affect or discharge the obligation or liability of any third Persons to any party to this Agreement, nor shall any provision give any third party any right of subrogation or action over against any party to this Agreement. 
 Section 9.6. Expenses. Each of the parties shall pay all costs and expenses incurred or to be incurred by it in negotiating and
preparing this Agreement and all documents executed in connection herewith and in closing and carrying out the Transactions including, but not limited to, legal and accounting fees and expenses (collectively, the “Expenses”). Buyer
shall be solely responsible for the cost of the title insurance and survey of the Real Estate. Buyer and Seller shall split equally the fees of the Title Insurer for serving as escrow agent and the transfer tax for the Real Property. Buyer shall be
solely responsible for all other sales, transfer, documentary, stamp, recording, conveyance and similar taxes and fees (including any penalties and interest) due with regard to the Transactions. 
  

 23 

 Section 9.7. Waiver. No failure of any party to exercise any right or remedy given to
such party under this Agreement or otherwise available to such party or to insist upon strict compliance by any other party with its obligations hereunder, and no custom or practice of the parties in variance with the terms hereof, shall constitute
a waiver of any party’s right to demand exact compliance with the terms hereof, unless such waiver is set forth in writing and executed by such party. Any such written waiver shall be limited to those items specifically waived therein and shall
not be deemed to waive any future breaches or violations or other non-specified breaches or violations unless, and to the extent, set forth therein. 
 Section 9.8. Governing Law. This Agreement shall be construed and governed in accordance with the internal laws of the State of Pennsylvania without regard to the principles of conflicting laws.

 Section 9.9. Assignments. This Agreement will be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns. This Agreement may not be assigned by Buyer without the prior written consent of Seller, except that Buyer may, without the requirement of prior written consent of Seller, assign this Agreement to an
Affiliate. Any such permitted assignment shall not release Buyer from its obligations under this Agreement. 
 Section 9.10.
Headings. The subject headings of articles and sections of this Agreement are included for purposes of convenience of reference only and shall not affect the construction or interpretation of any of its provisions. 
 Section 9.11. Jurisdiction of Courts. Any Proceeding initiated over any dispute arising out of or relating to this Agreement or any of
the Transactions shall be initiated in any federal or state court located within the Bucks County, Pennsylvania, and the parties further agree that venue for all such matters shall lie exclusively in those courts. The parties hereby irrevocably
waive, to the fullest extent permitted by applicable Law, any objection that they may now or hereafter have, including, but not limited to, any claim of forum non conveniens, to venue in the Court of Common Pleas of Bucks County,
Pennsylvania or the United States District Court for the Eastern District of Pennsylvania. The parties agree that a judgment in any such dispute may be enforced in other jurisdictions by Proceedings on the judgment or in any other manner provided by
Law. 
 Section 9.12. Waiver of Jury Trial. Each of the parties hereto hereby irrevocably waives any and all right to
trial by jury of any claim or cause of action in any legal proceeding arising out of or related to this Agreement or the transactions or events contemplated hereby or any course of conduct, course of dealing, statements (whether verbal or written)
or actions of any party hereto. The parties hereto each agree that any and all such claims and causes of action shall be tried by the court without a jury. Each of the parties hereto further waives any right to seek to consolidate any such legal
proceeding in which a jury trial has been waived with any other legal proceeding in which a jury trial cannot or has not been waived. 
 Section 9.13. Construction. The language used in this Agreement shall be deemed to be the language chosen by the parties to express their mutual intent, and no rule of strict construction shall be applied against any
party. 
  

 24 

 Section 9.14. Knowledge. For purposes of this Agreement and the Transaction Documents,
“knowledge of Seller” and each phrase having equivalent meaning (e.g., “known to Seller” or “to Seller’s knowledge”) shall mean the facts or other information actually known by Steven Hamilton or Joe
Domaracki. 
 Section 9.15. Interpretive Matters. Unless the context otherwise requires, (a) all references to
Articles, Sections or Schedules are to Articles, Sections or Schedules in this Agreement, (b) each accounting term not otherwise defined in this Agreement has the meaning assigned to it in accordance with GAAP, (c) words in the singular or
plural include the singular and plural, and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine, feminine and neuter and (d) whenever the words “include,” “includes” or
“including” are used in this Agreement they shall be deemed to be followed by the words “without limitation.” 
 Section 9.16. Counterparts. This Agreement may be executed and delivered in several counterparts, each of which, when so executed and delivered, shall constitute an original, fully enforceable counterpart for all
purposes. 
 [Signature pages follow.] 
  

 25 

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

  

			
	MSC PRE FINISHED METALS (MV) INC.
		
	By:	 	 /s/ Clifford D. Nastas

		 	Clifford D. Nastas, Chief Executive Officer
	
	MATERIAL SCIENCES CORPORATION
		
	By:	 	 /s/ Clifford D. Nastas

		 	Clifford D. Nastas, Chief Executive Officer
	
	K. MATKEM OF MORRISVILLE, LP
		
	By:	 	C&P Management Company, LLC, its General Partner
		
	By:	 	 /s/ Michelle C. Bus

		 	Michelle C. Bus, Member
		
	By:	 	 /s/ Kristina T. Montone

		 	Kristina T. Montone, Member
	
	 /s/ Theodore A. Bus

	Theodorus A. Bus
	
	 /s/ James P. Bus

	James P. BusEmployment Agreement dated January 9,2009

 Exhibit 10.1 
 GATEHOUSE MEDIA, INC. 
 GATEHOUSE MEDIA OPERATING, INC. 
 EMPLOYMENT AGREEMENT 
 THIS EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the
9th day of January, 2009 by and among GATEHOUSE MEDIA, INC., a Delaware corporation (“GHS”), GATEHOUSE MEDIA OPERATING, INC., a
Delaware corporation (“Operating” and together with GHS, the “Company”), and Kirk A. Davis (“Executive”). 
 WHEREAS in order to induce Executive to serve as the Company’s President and Chief Operating Officer, the Company desires to provide Executive with compensation and other benefits on the terms and conditions set
forth in this Agreement; and 
 WHEREAS, Executive is willing to accept such employment and perform services for the Company on the terms and
conditions herein set forth. 
 NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements herein contained, together
with other good and valuable consideration the receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 
 1.
SERVICES AND DUTIES. The Company hereby employs Executive, and Executive hereby accepts employment from the Company in the capacity of its President and Chief Operating Officer. Executive will report directly to the Company’s Chief
Executive Officer (“CEO”). Executive shall be a full-time employee of the Company and shall dedicate all of Executive’s working time to the Company and shall have no other employment and no other business ventures which are
undisclosed to the Company or which conflict with Executive’s duties under this Agreement. Executive will perform such duties as are required by the Company from time to time and normally associated with Executive’s position, together with
such additional duties, commensurate with the Executive’s position, as may be assigned to the Executive from time to time by the CEO. Notwithstanding the foregoing, nothing herein shall prohibit Executive from (i) engaging in personal
investment activities for himself and his family that do not give rise to any conflict of interests with the Company or its affiliates, (ii) subject to prior approval of the Board, accepting directorships unrelated to the Company that do not
give rise to any conflict of interests with the Company or its affiliates, (iii) engaging in charitable and civic activities, so long as such outside interests do not interfere with the performance of his duties hereunder and (iv) engaging
in the activities to the extent set forth in Schedule A. 
 2. START DATE; EMPLOYMENT-AT-WILL. Executive understands and agrees
(i) that he is an employee-at-will, (ii) that this Agreement does not constitute, for any reason, a guaranty or promise of continued employment with the Company (with the “Company” understood, for purposes of this Section 2,
to include any subsidiary of the Company and any successor in interest to the Company or to any such subsidiary), (iii) that the commencement of his employment with the Company does not constitute, for any reason, a guaranty or promise of
continued employment with the Company and (iv) that the continuation of his employment with the Company for any period of time does not constitute, for any reason, a guaranty or promise of continued employment with the Company. Executive
acknowledges that this Agreement has no term, and that the Company may terminate Executive’s employment with the Company at any 

 
time, with or without Cause (as defined below), subject to the Company’s obligations set forth in Section 5 below. The obligations under this
Agreement shall commence on or about January 9, 2009 (the actual date on which Executive is added to the Company’s payroll, the “Effective Date”). Notwithstanding anything to the contrary herein, in the event
of any termination of Executive’s employment, Executive shall nevertheless continue to be bound by the terms and conditions set forth in Sections 6 and 7 hereof, which provisions, along with Sections 8 and 9 hereof, shall survive any
termination of this Agreement. 
 3. COMPENSATION. 
 (a) Base Salary. In consideration of Executive’s full and faithful satisfaction of Executive’s duties under this Agreement, the Company agrees to pay to Executive a salary initially at
Executive’s current rate per annum (the “Base Salary”). The Base Salary will be payable in such installments as the Company pays its similarly placed employees (but not less frequently than each calendar month), subject to
usual and customary deductions for withholding taxes and similar charges, and customary employee contributions to health, welfare and retirement programs in which Executive is enrolled. The Base Salary shall be reviewed on an annual basis in
accordance with Executive’s annual performance evaluation and adjusted at the Company’s sole discretion; provided, however, in no event shall the Base Salary be reduced from its level at the time without Executive’s
approval. 
 (b) Annual Bonus Compensation. In addition to any salary payable pursuant to Section 3(a) above, Executive shall be
eligible to receive in respect of each fiscal year of the Company a bonus (for each such fiscal year, a “Bonus”), based on the achievement, as determined by the Board in its sole discretion, of certain performance standards as
agreed to by Executive and the Board, payable in such combination of cash and shares of common stock of GHS (“Common Stock”) as determined by the Board, in its sole discretion under the GateHouse Media, Inc. Stock Incentive Plan (or any
similar or successor plan) (the stock portion of any such Bonus, the “Restricted Stock Grant”). The number of shares comprising any Restricted Stock Grant shall be determined by dividing the applicable portion of the Bonus being awarded in
Common Stock by the fair market value (as determined by the Board in good faith) of the Common Stock on the date of grant. 
 The cash portion of each Bonus shall be paid to Executive within a reasonable time after the end
of the fiscal year, but in no event later than 2 1/2 months following completion of the Company’s fiscal year to which such
Bonus relates (“Outside Payment Date”); the Restricted Stock Grant portion of each Bonus shall be made on such date as the Board determines in its discretion, though no later than the applicable Outside Payment Date. Notwithstanding
anything to the contrary contained herein, no Bonus in respect of any fiscal year of the Company will be due to Executive unless he is employed by the Company on the last day of the fiscal year in respect of which the Bonus is awarded.

 (c) Withholding. All taxable compensation payable to Executive pursuant to this Section 3 or otherwise pursuant to this
Agreement shall be subject to customary withholding taxes and such other employment taxes as are required under Federal law or the law of any state or governmental body to be collected with respect to compensation paid to an employee. 
  

 - 2 - 

 4. BENEFITS AND PERQUISITES. 
 (a) Retirement and Welfare Benefits. During the Term, Executive will be entitled to all the usual benefits offered to employees at
Executive’s level, including vacation, sick time, participation in the Company’s medical, dental and insurance programs, as well as the ability to participate in the Company’s 401(k) retirement savings plan, subject to the applicable
limitations and requirements imposed by the terms of such benefit plans, in each case in accordance with the terms of such plans as from time to time in effect. Nothing in this Section 4, however, shall require the Company to maintain any
benefit plan or provide any type or level of benefits to its employees, including Executive; provided, however, during the Term, Executive shall be entitled to not less than four (4) weeks paid vacation annually; it being
understood that Executive shall be entitled to an additional week in calendar year 2009, which week was “carried over” from previous years. 
 (b) Reimbursement of Expenses. The Company shall reimburse Executive for any expenses reasonably and necessarily incurred by Executive in furtherance of Executive’s duties hereunder, including travel,
meals and accommodations, upon submission by Executive of vouchers or receipts and in compliance with such rules and policies relating thereto as the Company may from time to time adopt. 
 5. TERMINATION. Executive’s employment with the Company may be terminated (x) by the Company for Cause (as defined below), effective on
the date on which a written notice to such effect is delivered to Executive; (y) by the Company at any time without Cause, effective on the date on which a written notice to such effect is delivered to Executive; or (z) by Executive at any
time, effective on the date on which a written notice to such effect is delivered to the Company. 
 (a) For Cause Termination. If
Executive’s employment with the Company is terminated by the Company for Cause, Executive shall not be entitled to any further compensation or benefits other than accrued but unpaid Base Salary (payable as provided in Section 3(b)) and
accrued and unused vacation pay through the date of such termination (collectively, the “Accrued Benefits”). If the definition of “Cause” set forth below conflicts with such definition in any stock incentive plan or
agreement of the Company or any of its affiliates, the definition set forth herein shall control. 
 (b) Termination by Company without
Cause, “Change of Control”. If Executive’s employment is terminated by the Company other than for Cause, including within 12 months of a “change of control”, then Executive shall be entitled to, upon Executive’s
providing the Company with a signed release of claims in a form adopted by the Company’s Board of Directors from time to time and subject to Executive’s continued compliance with the provisions of Sections 6 and 7 hereof: (i) the
Accrued Benefits, (ii) an amount equal to twelve (12) months Base Salary payable in the same manner as provided under Section 3(a), (iii) any declared Bonus not yet paid, and (iv) continuation of Executive’s coverage
under the Company’s medical plan at the same levels as such benefits that have been provided to Executive, and in connection therewith Executive shall periodically pay to the Company amounts equivalent to that which he paid as required employee
contributions immediately prior to the date of termination, until the earlier of (A) the period of time it takes Executive to become eligible for the medical benefits 

  

 - 3 - 

 
program of a new employer (subject to Section 6(a) hereof) or (B) twelve (12) months from the date of such termination. Executive acknowledges
that executive’s termination of employment on the date of such termination shall constitute a “qualifying event” for the purposes of the Consolidated Omnibus Budget Reconciliation Act of 1986 (“COBRA”). Executive further
acknowledges on behalf of himself and his dependents that any period with respect to which any of them would be eligible to elect COBRA shall be reduced by the period of post-termination medical benefit continuation provided under this subsection.
Executive acknowledges that the Company may terminate Executive without Cause at any time, and that the Company shall have no obligations under such circumstances to Executive beyond the specific obligations set forth in this Section 5(b); and
any other binding agreement or arrangement between Executive and the Company. 
 (c) Resignation, Death or Disability. If
Executive’s employment is terminated by reason of Executive’s death, Disability or voluntary resignation, Executive shall not be entitled to receive any further compensation or benefits under this Agreement or otherwise other than the
Accrued Benefits. During any period that Executive fails to perform his duties hereunder as a result of disability or incapacity, Executive shall continue to receive his Base Salary and all other benefits and all other compensation pursuant to this
Agreement unless and until his employment is terminated pursuant to this Section 5. 
 (d) Definitions. For purposes of this
Agreement: 
 “Cause” means (i) conviction of, guilty plea concerning or confession of any felony,
(ii) any act of dishonesty committed by Executive in connection with the Company’s or its subsidiaries’ business, (iii) any material breach by Executive of this Agreement, after written notice thereof from the Board is given in
writing and such breach is not cured to the satisfaction of the Company within a reasonable period of time (not greater than 30 days) under the circumstances, (iv) any material breach of any reasonable and lawful rule or directive of the
Company, (v) the gross or willful neglect of duties or gross misconduct by Executive, or (vi) the habitual use of drugs or habitual, excessive use of alcohol to the extent that any of such uses in the Board’s good faith
determination materially interferes with the performance of Executive’s duties under this Agreement. 
 “Disability” means, as determined by the Board of Directors in good faith, Executive’s inability, due to disability or incapacity, to perform all of his duties hereunder on a full-time basis for (i) periods aggregating
90 days, whether or not continuous, in any continuous period of 365 days, or (ii) where Executive’s absence is adversely affecting the performance of the Company in a significant manner, periods greater than 30 days and Executive is unable
to resume his duties on a full time basis within 10 days of receipt of written notice of the Board’s determination under this clause (ii). 
 (e) Resignation as Officer or Director. Upon the termination of employment for any reason, Executive shall resign each position (if any) that he then holds as an officer or director of the Company or any of its subsidiaries.

  

 - 4 - 

 (f) Payments in Lieu of Other Severance Rights. The payments provided in subsections (a),
(b) and (c) of this Section 5 shall be made in lieu of any other severance payments under any severance agreement, plan, program or arrangement of the Company. 
 (g) Manner of Payment. Unless Executive breaches one of the restrictive covenants contained in Sections 6 and 7 of this Agreement, the payments
described in clauses (b) and (c) of this Section 5 shall be paid over a period of twelve (12) months commencing on the date of Executive’s termination of employment with the Company. Notwithstanding anything herein to the
contrary, (1) the payment of any amounts hereunder (including benefits continuation) shall cease on the date on which Executive breaches any of the restrictive covenants contained in Sections 6 and 7 of this Agreement. 
 6. RESTRICTIVE COVENANTS. Executive acknowledges that during the period of his employment with the Company he shall have access to the
Company’s Confidential Information (as defined below) and will meet and develop relationships with the Company’s potential and existing suppliers, financing sources, clients, customers and employees. 
 (a) Noncompetition. Executive agrees that during the period of his employment with the Company and for the one (1) year period immediately
following (i) termination of such employment for any reason by the Company for cause or by the Executive or (ii) termination of such employment by the Company without cause, unless Executive agrees at such time in writing within 5 days of
such termination to waive his rights to receive the amounts set forth in clauses (ii) and (iii) of Section 5(b) above (in which case the provisions of this Section 6(a) shall not apply, it being understood that Executive shall
still be required to deliver the release of claims described in Section 5(a) above in order to receive the rights set forth in clauses (i) and (iv) of Section 5(b) above). Executive shall not directly or indirectly, either as a
principal, agent, employee, employer, consultant, partner, shareholder of a closely held corporation or shareholder in excess of five (5%) percent of a publicly traded corporation, corporate officer or director, or in any other individual or
representative capacity, engage or otherwise participate in any manner or fashion in any business that is in competition in any manner whatsoever with more than 20% of the business activities of the Company or its affiliates in the United States.
Executive further covenants and agrees that this restrictive covenant is reasonable as to duration, terms and geographical area and that the same protects the legitimate interests of the Company and its affiliates, imposes no undue hardship on
Executive, is not injurious to the public, and that any violation of this restrictive covenant shall be specifically enforceable in any court with jurisdiction upon short notice. 
 (b) Solicitation of Employees, Etc. Executive agrees that during the period of his employment with the Company and for the one (1) year
period immediately following the date of termination of Executive’s employment with the Company for any reason, Executive shall not, directly or indirectly, (i) solicit or induce any officer, director, employee, agent or consultant of the
Company or any of its successors, assigns, subsidiaries or affiliates to terminate his, his or its employment or other relationship with the Company or its successors, assigns, subsidiaries or affiliates for the purpose of associating with any
competitor of the Company or its successors, assigns, subsidiaries or affiliates, or otherwise encourage any such person or entity to leave or sever his, his or its employment or other relationship with the Company or its successors, assigns,
subsidiaries or affiliates, for any other reason or (ii) hire any individual who left the employ of the Company or any of its affiliates during the immediately preceding one-year period. 
  

 - 5 - 

 (c) Solicitation of Clients, Etc. Executive agrees that during the period of his employment with
the Company and for the one (1) year period immediately following the date of termination of Executive’s employment with the Company for any reason, Executive shall not, directly or indirectly, solicit or induce (i) any customers or
clients of the Company or its successors, assigns, subsidiaries or affiliates or (ii) any vendors, suppliers or consultants then under contract to the Company or its successors, assigns, subsidiaries or affiliates, to terminate his, his or its
relationship with the Company or its successors, assigns, subsidiaries or affiliates, for the purpose of associating with any competitor of the Company or its successors, assigns, subsidiaries or affiliates, or otherwise encourage such customers or
clients, or vendors, suppliers or consultants then under contract, to terminate his, his or its relationship with the Company or its successors, assigns, subsidiaries or affiliates, for any other reason. 
 (d) Disparaging Comments. Executive agrees that during the period of his employment with the Company and thereafter, Executive shall not make any
disparaging or defamatory comments regarding the Company or, after termination of his employment relationship with the Company, make any comments concerning any mutually agreed to confidential aspects of the termination of their relationship. The
obligations of Executive under this subparagraph shall not apply to disclosures required by applicable law, regulation or order of any court or governmental agency. 
 Nothing contained in this Section 6 shall limit any common law or statutory obligation that the Executive may have to the Company or any of its affiliates. For purposes of this Section 6 and Section 7,
the “Company” refers to the Company and any incorporated or unincorporated affiliates of the Company, including any entity which becomes Executive’s employer as a result of any reorganization or restructuring of the Company.

 7. CONFIDENTIALITY. All books of account, records, systems, correspondence, documents, and any and all other data, in whatever
form, concerning or containing any reference to the works and business of the Company or its affiliated companies shall belong to the Company and shall be given up to the Company whenever the Company requires Executive to do so. Executive agrees
that Executive shall not at any time during the term of Executive’s employment or thereafter, without the Company’s prior written consent, disclose to any person (individual or entity) any information or any trade secrets, plans or other
information or data, in whatever form, (including, without limitation, (i) any financing strategies and practices, pricing information and methods, training and operational procedures, advertising, marketing, and sales information or
methodologies or financial information and (ii) any Proprietary Information (as defined below)), concerning the Company’s or any of its affiliated companies’ or customers’ practices, businesses, procedures, systems, plans or
policies (collectively, “Confidential Information”), nor shall Executive utilize any such Confidential Information in any way or communicate with or contact any such customer other than in connection with Executive’s employment by the
Company. Executive hereby confirms that all Confidential Information constitutes the Company’s exclusive property, and that all of the restrictions on Executive’s activities contained in this Agreement and such other nondisclosure policies
of the Company are required for the Company’s reasonable protection. Confidential Information shall not include 

  

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any information that has otherwise been disclosed to the public not in violation of this Agreement. This confidentiality provision shall survive the
termination of this Agreement and shall not be limited by any other confidentiality agreements entered into with the Company or any of its affiliates. 
 Executive agrees that he shall promptly disclose to the Company in writing all information and inventions generated, conceived or first reduced to practice by his alone or in conjunction with others, during or after
working hours, while in the employ of the Company (all of which is collectively referred to in this Agreement as “Proprietary Information”); provided, however, that such Proprietary Information shall not include
(i) any information that has otherwise been disclosed to the public not in violation of this Agreement and (ii) general business knowledge and work skills of Executive, even if developed or improved by Executive while in the employ of the
Company. All such Proprietary Information shall be the exclusive property of the Company and is hereby assigned by Executive to the Company. Executive’s obligation relative to the disclosure to the Company of such Proprietary Information
anticipated in this Section 7 shall continue beyond Executive’s termination of employment and Executive shall, at the Company’s expense, give the Company all assistance it reasonably requires to perfect, protect and use its right to
the Proprietary Information. 
 8. ASSIGNMENT. This Agreement, and all of the terms and conditions hereof, shall bind the Company and
its successors and assigns and shall bind Executive and Executive’s heirs, executors and administrators. No transfer or assignment of this Agreement shall release the Company from any obligation to Executive hereunder. Neither this Agreement,
nor any of the Company’s rights or obligations hereunder, may be assigned or otherwise subject to hypothecation by Executive. The Company may assign the rights and obligations of the Company hereunder, in whole or in part, to any of the
Company’s subsidiaries, affiliates or parent corporations, or to any other successor or assign in connection with the sale of all or substantially all of the Company’s assets or stock or in connection with any merger, acquisition and/or
reorganization, provided the assignee assumes the obligations of the Company hereunder. 
 9. SECTION 409A OF THE INTERNAL REVENUE CODE OF
1986, AS AMENDED. 
 If any of the payments to be made under this Agreement are deemed to be “deferred compensation”, as that
term is defined under Section 409A of the Internal Revenue Code of 1986, as amended, and such regulations and guidance promulgated by the Internal Revenue Service in connection therewith (collectively, “Section 409A”), the Company
reserves the right to modify the terms and provisions of this Agreement to comply with Section 409A. 
 10. GENERAL. 

(a) Notices. Any notices provided hereunder must be in writing and shall be deemed effective upon the earlier of one business day following
personal delivery (including personal delivery by telecopy or telex), or the third business day after mailing by first class mail to the recipient at the address indicated below: 
 To the Company: 
 GateHouse Media, Inc.

 350 WillowBrook Office Park 
 Fairport, NY 14450 
 Attn: Chairman of the Board of Directors 
  

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 To Executive: 
 Kirk A. Davis 
 2 Wellington Way 
 Hopkinton, MA 01748 
 or to such other address or to the
attention of such other person as the recipient party will have specified by prior written notice to the sending party. 
 (b)
Severability. Any provision of this Agreement which is deemed invalid, illegal or unenforceable in any jurisdiction shall, as to that jurisdiction and subject to this paragraph be ineffective to the extent of such invalidity, illegality or
unenforceability, without affecting in any way the remaining provisions hereof in such jurisdiction or rendering that or any other provisions of this Agreement invalid, illegal, or unenforceable in any other jurisdiction. If any covenant should be
deemed invalid, illegal or unenforceable because its scope is considered excessive, such covenant shall be modified so that the scope of the covenant is reduced only to the minimum extent necessary to render the modified covenant valid, legal and
enforceable. 
 (c) Entire Agreement. This document constitutes the final, complete, and exclusive embodiment of the entire agreement
and understanding between the parties related to the subject matter hereof and supersedes and preempts any prior or contemporaneous understandings, agreements, or representations by or between the parties, written or oral. 
 (d) Counterparts. This Agreement may be executed on separate counterparts, any one of which need not contain signatures of more than one party,
but all of which taken together will constitute one and the same agreement. 
 (e) Amendments. No amendments or other modifications to
this Agreement may be made except by a writing signed by all parties. Nothing in this Agreement, express or implied, is intended to confer upon any third person any rights or remedies under or by reason of this Agreement. 
 (f) Choice of Law. All questions concerning the construction, validity and interpretation of this Agreement will be governed by the laws of the
State of New York without giving effect to principles of conflicts of law of such state. 
 (g) Survivorship. The provisions of this
Agreement necessary to carry out the intention of the parties as expressed herein shall survive the termination or expiration of this Agreement. 
  

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 (h) Waiver. The waiver by either party of the other party’s prompt and complete performance,
or breach or violation, of any provision of this Agreement shall not operate nor be construed as a waiver of any subsequent breach or violation, and the failure by any party hereto to exercise any right or remedy which it may possess hereunder shall
not operate nor be construed as a bar to the exercise of such right or remedy by such party upon the occurrence of any subsequent breach or violation. No waiver shall be deemed to have occurred unless set forth in a writing executed by or on behalf
of the waiving party. No such written waiver shall be deemed a continuing waiver unless specifically stated therein, and each such waiver shall operate only as to the specific term or condition waived and shall not constitute a waiver of such term
or condition for the future or as to any act other than that specifically waived. 
 (i) Captions. The captions of this Agreement are
for convenience and reference only and in no way define, describe, extend or limit the scope or intent of this Agreement or the intent of any provision hereof. 
 (j) Construction. The parties acknowledge that this Agreement is the result of arm’s-length negotiations between sophisticated parties each afforded representation by legal counsel. Each and every
provision of this Agreement shall be construed as though both parties participated equally in the drafting of the same, and any rule of construction that a document shall be construed against the drafting party shall not be applicable to this
Agreement. 
 (k) Arbitration. Except as necessary for the Company and its subsidiaries, affiliates, successors or assigns or
Executive to specifically enforce or enjoin a breach of this Agreement (to the extent such remedies are otherwise available), the parties agree that any and all disputes that may arise in connection with, arising out of or relating to this
Agreement, or any dispute that relates in any way, in whole or in part, to Executive’s services on behalf of the Company or any subsidiary, the termination of such services or any other dispute by and between the parties or their subsidiaries,
affiliates, successors or assigns, shall be submitted to binding arbitration in New York, New York according to the National Employment Dispute Resolution Rules and procedures of the American Arbitration Association. The parties agree that the
prevailing party in any such dispute shall be entitled to reasonable attorneys’ fees, costs, and necessary disbursements in addition to any other relief to which he or it may be entitled. This arbitration obligation extends to any and all
claims that may arise by and between the parties or their subsidiaries, affiliates, successors or assigns, and expressly extends to, without limitation, claims or causes of action for wrongful termination, impairment of ability to compete in the
open labor market, breach of an express or implied contract, breach of the covenant of good faith and fair dealing, breach of fiduciary duty, fraud, misrepresentation, defamation, slander, infliction of emotional distress, disability, loss of future
earnings, and claims under the United States Constitution, and applicable state and federal fair employment laws, federal and state equal employment opportunity laws, and federal and state labor statutes and regulations, including, but not limited
to, the Civil Rights Act of 1964, as amended, the Fair Labor Standards Act, as amended, the Americans With Disabilities Act of 1990, as amended, the Rehabilitation Act of 1973, as amended, the Employee Retirement Income Security Act of 1974, as
amended, the Age Discrimination in Employment Act of 1967, as amended, and any other state or federal law. 
  

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 11. EXECUTIVE REPRESENTATION & ACCEPTANCE. By signing this Agreement, Executive hereby
represents that Executive is not currently under any contractual obligation to work for another employer and that Executive is not restricted by any agreement or arrangement from entering into this Agreement and performing Executive’s duties
hereunder. 
  

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 IN WITNESS WHEREOF AND INTENDING TO BE LEGALLY BOUND THEREOF, the parties hereto have executed and
delivered this Agreement as of the year and date first above written. 
 GATEHOUSE MEDIA, INC. 
 By: /s/ Michael E. Reed, Chief Executive Officer 
  
 GATEHOUSE MEDIA OPERATING, INC. 
 By: /s/ Michael E. Reed, Chief Executive Officer 
  
 EXECUTIVE 
 /s/ Kirk A. Davis 
  

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 Schedule A 
 Executive owns a small newspaper company in Central Massachusetts, which has its own publisher. Executive also serves on the SNA Foundation Board, ABC Board and New England Newspaper Association board. Executive will be resigning from his
position on the New England Newspaper Association Board. Executive is also on the Massachusetts Newspaper Publishers Association executive committee, and will be resigning from that position. 
  

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