Document:

Purchase Agreement among Koppers, Carbon Investments and ArcelorMittal S.A.

 Exhibit 10.49 
 Execution Version 
 PURCHASE AGREEMENT 
 dated as of August 3, 2008 
 by and among 
 KOPPERS INC., 
 CARBON INVESTMENTS, INC.,

 and 
 ARCELORMITTAL S.A.

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		
	 ARTICLE I DEFINITIONS
	  	1
			
	 1.1
	  	 General Provisions
	  	1
			
	 1.2
	  	 Specific Provisions
	  	2
		
	 ARTICLE II PURCHASE AND SALE OF INTERESTS
	  	10
			
	 2.1
	  	 Purchase and Sale
	  	10
			
	 2.2
	  	 Purchase Price
	  	10
			
	 2.3
	  	 Purchase Price Adjustment
	  	10
		
	 ARTICLE III CLOSING
	  	12
			
	 3.1
	  	 Closing Date
	  	12
			
	 3.2
	  	 Items to be Delivered at the Closing by Koppers
	  	12
			
	 3.3
	  	 Items to be Delivered at the Closing by CI
	  	13
			
	 3.4
	  	 Items to be Delivered at the Closing by Buyer
	  	13
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLERS
	  	13
			
	 4.1
	  	 Organization and Related Matters
	  	13
			
	 4.2
	  	 Capitalization
	  	14
			
	 4.3
	  	 Subsidiaries and Investments
	  	14
			
	 4.4
	  	 Authorization; No Conflicts; Consents
	  	14
			
	 4.5
	  	 Legal Proceedings
	  	15
			
	 4.6
	  	 Compliance with Law
	  	15
			
	 4.7
	  	 No Brokers or Finders
	  	16
			
	 4.8
	  	 Financial Schedule; No Material Liabilities
	  	16
			
	 4.9
	  	 Real Property; Tangible Assets
	  	17
			
	 4.10
	  	 Intangible Property
	  	18
			
	 4.11
	  	 Material Contracts
	  	19
			
	 4.12
	  	 Insurance
	  	20
			
	 4.13
	  	 Employees
	  	21
			
	 4.14
	  	 Benefit Plans
	  	21
			
	 4.15
	  	 Labor Relations; Compliance
	  	22
			
	 4.16
	  	 Taxes
	  	23
			
	 4.17
	  	 Environmental
	  	24
			
	 4.18
	  	 Related Party Transactions
	  	25
			
	 4.19
	  	 No Other Representation
	  	25
			
	 4.20
	  	 Disclosure of Information
	  	25
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES OF BUYER
	  	25
			
	 5.1
	  	 Organization and Related Matters
	  	25

  

 -i- 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 5.2
	  	 Authorization; No Conflicts
	  	25
			
	 5.3
	  	 Legal Proceedings
	  	26
			
	 5.4
	  	 No Brokers or Finders
	  	26
			
	 5.5
	  	 Availability of Funds
	  	26
			
	 5.6
	  	 Qualified Buyer
	  	26
			
	 5.7
	  	 Securities Matters
	  	26
		
	 ARTICLE VI INTERIM COVENANTS
	  	27
			
	 6.1
	  	 Access
	  	27
			
	 6.2
	  	 Conduct of Business
	  	27
			
	 6.3
	  	 Approvals and Permits; Filings with Governmental Entities
	  	29
			
	 6.4
	  	 Efforts
	  	29
			
	 6.5
	  	 Notification of Certain Matters
	  	29
			
	 6.6
	  	 Competing Transaction
	  	30
			
	 6.7
	  	 Interference with Business
	  	30
			
	 6.8
	  	 Real Estate Matters
	  	30
			
	 6.9
	  	 Koppers Contracts
	  	31
			
	 6.10
	  	 Tar Supply Contracts
	  	32
			
	 6.11
	  	 Preservation of Rights; Assistance
	  	32
		
	 ARTICLE VII ADDITIONAL CONTINUING COVENANTS
	  	33
			
	 7.1
	  	 Post-Closing Access
	  	33
			
	 7.2
	  	 Excluded Intangible Property
	  	33
			
	 7.3
	  	 Insurance
	  	33
		
	 ARTICLE VIII GENERAL CONDITIONS TO CLOSE
	  	34
			
	 8.1
	  	 No Orders; Legal Proceedings
	  	34
			
	 8.2
	  	 HSR
	  	34
			
	 8.3
	  	 Union Matters
	  	34
		
	 ARTICLE IX CONDITIONS TO OBLIGATIONS OF BUYER
	  	34
			
	 9.1
	  	 Representations and Warranties and Covenants of Sellers
	  	34
			
	 9.2
	  	 Closing Documents
	  	35
			
	 9.3
	  	 Approvals and Permits
	  	35
			
	 9.4
	  	 Release of Liens
	  	36
		
	 ARTICLE X CONDITIONS TO OBLIGATIONS OF SELLERS
	  	36
			
	 10.1
	  	 Representations and Warranties and Covenants of Buyer
	  	36
			
	 10.2
	  	 Closing Documents
	  	36

  

 -ii- 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE XI TERMINATION OF OBLIGATIONS; SURVIVAL
	  	36
			
	 11.1
	  	 Termination of Agreement
	  	36
			
	 11.2
	  	 Effect of Termination
	  	37
		
	 ARTICLE XII INDEMNIFICATION
	  	37
			
	 12.1
	  	 Obligations of Koppers
	  	37
			
	 12.2
	  	 Obligations of CI
	  	38
			
	 12.3
	  	 Obligations of Buyer
	  	38
			
	 12.4
	  	 Procedure
	  	39
			
	 12.5
	  	 Limitations on Indemnification
	  	40
			
	 12.6
	  	 Survival of Obligations
	  	40
			
	 12.7
	  	 Tax Treatment
	  	41
			
	 12.8
	  	 Remedies Exclusive
	  	41
		
	 ARTICLE XIII TAX MATTERS
	  	41
			
	 13.1
	  	 Tax Covenant
	  	41
			
	 13.3
	  	 Returns and Reports and Payment of Taxes
	  	42
			
	 13.4
	  	 Allocation of Tax Liability
	  	42
			
	 13.5
	  	 Refunds
	  	43
			
	 13.6
	  	 Survival
	  	43
		
	 ARTICLE XIV EMPLOYEE MATTERS
	  	43
			
	 14.1
	  	 Union Contract; Initial Employment of Transferred Employees
	  	43
			
	 14.2
	  	 Employee Benefits
	  	43
			
	 14.3
	  	 COBRA, Disability and Workers Compensation Liabilities
	  	44
			
	 14.4
	  	 Assumption of Benefit Liability
	  	45
			
	 14.5
	  	 Retirement Plan Matters
	  	45
			
	 14.6
	  	 Retiree Medical
	  	47
			
	 14.7
	  	 Retiree Life
	  	47
			
	 14.8
	  	 Modification and Amendment
	  	47
		
	 ARTICLE XV PUBLICITY/CONFIDENTIALITY
	  	47
			
	 15.1
	  	 Publicity and Reports
	  	47
			
	 15.2
	  	 Confidentiality
	  	47
		
	 ARTICLE XVI GENERAL
	  	48
			
	 16.1
	  	 Amendments; Waivers
	  	48
			
	 16.2
	  	 Exhibits and Schedules; Integration
	  	48
			
	 16.3
	  	 Efforts
	  	48
			
	 16.4
	  	 Governing Law
	  	48
			
	 16.5
	  	 No Assignment
	  	48

  

 -iii- 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 16.6
	  	 Headings
	  	48
			
	 16.7
	  	 Counterparts
	  	48
			
	 16.8
	  	 Parties in Interest
	  	49
			
	 16.9
	  	 Notices
	  	49
			
	 16.10
	  	 Expenses; Transfer Taxes
	  	50
			
	 16.11
	  	 Representation by Counsel; Interpretation
	  	50
			
	 16.12
	  	 Severability
	  	51
			
	 16.13
	  	 Dispute Resolution; Agreement to Arbitrate
	  	51
			
	 16.14
	  	 Consent to Jurisdiction
	  	52
			
	 16.15
	  	 Waiver of Jury Trial
	  	52
			
	 16.16
	  	 Further Assurances
	  	52

  

					
	EXHIBITS	  	
			
	 A
	  	 [reserved]
	  	
			
	 B-1
	  	 Form of Supply Contract
	  	
			
	 B-2
	  	 Specific Terms to be Reflected in Supply Contract
	  	
			
	 C
	  	 Current Financial Schedule
	  	
			
	 C-2
	  	 Statements of Operations
	  	
			
	 D
	  	 Tar Supply Contract 1
	  	
			
	 E
	  	 Tar Supply Contract 2
	  	
			
	 F
	  	 Tar Supply Contract 3
	  	
			
	 G
	  	 Tar Supply Contract 4
	  	
		
	INFORMATIONAL SCHEDULES	  	
			
	 1.1(d) (Part I)
	  	 Koppers’ Knowledge
	  	
			
	 1.1(d) (Part II)
	  	 Buyer’s Knowledge
	  	
			
	 2.3
	  	 Principles to be Applied in Preparing Closing Financial Schedule
	  	
			
	 6.2
	  	 Conduct of the Business
	  	
			
	 9.1(f)
	  	 Services Covered by Transition Services Agreement
	  	
		
	DISCLOSURE SCHEDULE	  	
			
	 4.4
	  	 Approvals
	  	
			
	 4.8(c)
	  	 Material Liabilities
	  	

  

 -iv- 

					
			
	 4.8(d)
	  	 Certain Events Subsequent to Date of Current Financial Schedule
	  	
			
	 4.9(a)
	  	 Title to Real Property
	  	
			
	 4.9(c)
	  	 Title to Tangible Assets
	  	
			
	 4.9(d)
	  	 Production Exceptions
	  	
			
	 4.10(a)
	  	 Intangible Property
	  	
			
	 4.10(c)
	  	 Claims Against Material Intangible Property
	  	
			
	 4.10(e)
	  	 Third Party Rights to Material Intangible Property
	  	
			
	 4.11(a)
	  	 Material Contracts
	  	
			
	 4.11(b)
	  	 Defaults Under Material Contracts
	  	
			
	 4.12
	  	 Insurance Policies
	  	
			
	 4.13(a)
	  	 Employee Information
	  	
			
	 4.13(c)
	  	 Severance Plan Payment Obligations
	  	
			
	 4.14(a)
	  	 Benefit Plans
	  	
			
	 4.14(b)
	  	 Benefit Exceptions
	  	
			
	 4.14(c)
	  	 Post-Termination and Retiree Welfare Benefits
	  	
			
	 4.14(d)
	  	 Benefit Plan Liabilities
	  	
			
	 4.15
	  	 Labor Relations
	  	
			
	 4.16
	  	 Tax Return Matters
	  	
			
	 4.17(a)
	  	 Exceptions to Environmental Laws and Environmental Permits
	  	
			
	 4.17(b)
	  	 Environmental Claims
	  	
			
	 4.17(c)
	  	 Environmental Notices Specifically Applicable to Facility
	  	
			
	 4.17(d)
	  	 Certain Materials Present at Facility
	  	
		
	BUYER’S DISCLOSURE SCHEDULE	  	
			
	 5.2
	  	 Governmental Approvals
	  	

  

 -v- 

 PURCHASE AGREEMENT 
 THIS PURCHASE AGREEMENT, dated as of August 3, 2008 (this “Agreement”), by and among Koppers Inc., a Pennsylvania corporation (“Koppers”), Carbon Investments, Inc., a Delaware
corporation (“CI” and, together with Koppers, “Sellers”), which is a party to this Agreement solely for the purpose of being bound by Article II and Sections 3.3, 6.6, 12.2, 13.1 and 15.2 of this Agreement and
making the representations and warranties in Sections 4.2(b), 4.4(b), 4.4(d) and 4.7(b) of this Agreement, and ArcelorMittal S.A., a société anonyme organized under the laws of Luxembourg, acting directly or through its designee
(“Buyer”). 
 RECITALS 
 WHEREAS, Koppers Monessen Partners LP, a Delaware limited partnership (the “Partnership”), is engaged in the business of producing coke and various by-products of the coke production process (the
“Business”) at its Monessen, Pennsylvania facility (the “Facility”); 
 WHEREAS, Koppers owns a 95%
interest in the Partnership and CI owns a 5% interest in the Partnership, each of which shall be converted at Closing (the “Conversion”), pro rata, into the sole membership interests (such converted interests, respectively,
the “Koppers Interests” and the “CI Interests,” and together, the “Interests”) of a newly formed Delaware Limited Liability Company (the “Limited Liability Company”); and; 
 WHEREAS, Buyer desires to purchase from each of Koppers and CI, and each of Koppers and CI desires to sell to Buyer, upon the terms and subject to the
conditions hereinafter set forth, the Koppers Interests and the CI Interests, respectively. 
 NOW THEREFORE, in consideration of the mutual
promises and covenants contained herein and intending to be legally bound, each of the parties hereto hereby agrees as follows: 
 ARTICLE
I 
 DEFINITIONS 
 1.1
General Provisions. For all purposes of this Agreement, except as otherwise expressly provided: 
 (a) the terms
defined in this Article I have the meanings assigned to them in this Article I and include the plural as well as the singular; 
 (b) all references herein to designated “Articles,” “Sections” and other subdivisions and to “Exhibits” and “Schedules” are to the designated Articles, Sections and other subdivisions of the body of
this Agreement and to the exhibits and schedules to this Agreement; 
 (c) pronouns of either gender or neuter shall include,
as appropriate, the other pronoun forms; 
  

 1 

 (d) when any representation, warranty, covenant or agreement contained in this Agreement
is expressly qualified by reference to “Koppers’ knowledge” or words of similar import, it shall mean the current, actual knowledge of the individuals set forth in Part I of Schedule 1.1(d), following reasonable inquiry.

 (e) where any representation, warranty or other provision in this Agreement refers to notice or written notice having been
delivered or received by the Partnership or any of its Affiliates, such representation, warranty or other provision shall be interpreted to include only any notice to the individuals set forth in Part I of Schedule 1.1(d) or any notice of
which one of such individuals has actual knowledge, following reasonable inquiry as to the sending or receipt of such notice. 
 (f) when any representation, warranty, covenant or agreement contained in this Agreement is expressly qualified by reference to “Buyer’s knowledge” or words of similar import, it shall mean the current, actual
knowledge of the individuals set forth in Part II of Schedule 1.1(d), following reasonable inquiry. 
 (g) the Parties
anticipate that, immediately prior to Closing, the Partnership will be converted into a Delaware Limited Liability Company as provided for in Section 9.1(e) hereof. All references in this Agreement to the “Partnership,” including,
without limitation, with respect to the representations and warranties and covenants of Koppers and/or CI concerning the Partnership, the Partnership Agreement and the Interests of the Partnership, shall be deemed, upon conversion, to apply to the
Limited Liability Company (notwithstanding any specific references elsewhere in this agreement to the Limited Liability Company). 
 (h) all references herein to “books and records” shall include, without limitation, computer records and files; and 
 (i) all references to Sellers, Buyer or the Partnership shall include any successor or assign of such Person. 
 1.2 Specific Provisions. As used herein the following definitions shall apply: 
 “30-Day
Period” is defined in Section 2.3(c). 
 “Accountants’ Determination” is defined in
Section 2.3(c). 
 “Action” means any action, complaint, investigation, petition, suit, arbitration or
other proceeding, whether civil or criminal, in law or in equity, or before any arbitrator or Governmental Entity. 
 “Adjusted Purchase Price” shall mean an amount equal to the Initial Purchase Price, plus (y) the dollar amount of Net Working Capital (as finally determined in accordance with Section 2.3 below).

  

 2 

 “Affiliate” means a Person that directly or indirectly, through one or
more intermediaries, controls, or is controlled by, or is under common control with, a specified Person. 
 “Agreed
Rate” means, as of the date of any payment of interest to be made by reference thereto, the interest rate from time to time announced by PNC Bank as its prime rate calculated on the basis of a 365-day year and charged for the actual number
of days elapsed. 
 “Agreement” is defined in the caption to this Agreement. 
 “Amount Transferred” is defined in Section 14.5(c). 
 “Approval” means with respect to a given Person any approval, authorization, consent, qualification or registration, or
any waiver of any of the foregoing, required to be obtained by such Person from, or any notice, statement or other communication required to be filed by such Person with or delivered by such Person to, any Governmental Entity or any other Person.

 “Approval Contract” is defined in Section 6.9(b). 
 “Arbitrating Accountants” is defined in Section 2.3(c). 
 “Assignment” is defined in Section 3.2(a). 
 “Assignable Contract” is defined in Section 6.9(a). 
 “Assumed Koppers Liabilities” is defined in Section 2.3(d). 
 “Assumed Retirement Liabilities” is defined in Section 14.5 
 “Business” is defined in the Recitals to this Agreement. 
 “Buyer” is defined in the caption to this Agreement. 
 “Buyer Actuary” is defined in Section 14.5(b). 
 “CI” is defined in the Recitals to this Agreement. 
 “CI Interests” is defined in the Recitals to this Agreement. 
 “Closing” means the consummation of the purchase and sale of the Interests pursuant to this Agreement. 
 “Closing Date” means the date of the Closing. 
 “Closing Financial Schedule” is defined in Section 2.3(a). 
 “Code” means the Internal Revenue Code of 1986, as amended. 
  

 3 

 “Commercially Reasonable Efforts” means as to a party, an undertaking by
such party to perform or satisfy an obligation or duty or otherwise act in a manner reasonably calculated to obtain the intended result, provided that such party shall not be required to take actions, other than in the ordinary course of business,
which would cause it to (i) expend funds other than for payment of the reasonable and customary costs and expenses of employees, counsel, consultants, representatives or agents of such party in connection with the performance or satisfaction of
such obligation or duty or other action, (ii) institute litigation or arbitration as a part of its Commercially Reasonable Efforts or (iii) amend, waive or modify a term or condition of, or grant any concessions under or with respect to,
any contract or relationship with respect to which an approval is sought or any other agreement or relationship with such Person. 
 “Competing Transaction” is defined in Section 6.6. 
 “Contract” means any
binding agreement, contract, guarantee, license, lease, promise, understanding or arrangement (written or unwritten), bond, note, commitment, franchise, indemnity, indenture, instrument, lease or license, together with any schedules or documents
executed or delivered in connection therewith and any modifications, amendments or supplements thereto. 
 “Conversion” is defined in the Recitals to this Agreement. 
 “Current Financial
Schedule” is defined in Section 4.8(a). 
 “Dell Leased Equipment” means the computer equipment
leased from Dell Financial Services L.P. pursuant to lease schedules number 053, 054, 082, 083, 085 and 097 executed under that certain Master Lease Agreement No. 6059888 dated as of October 12, 1998 and used by the Partnership, to the
extent such schedules relate to the equipment described in Section 4.11(a) of the Disclosure Schedule. 
 “Draft Purchase Price Allocation” is defined in Section 13.2. 
 “Employee Benefit
Plans” means all Employee Pension Benefit Plans (as defined in Section 3(2) of ERISA, whether or not subject to ERISA), all Employee Welfare Benefit Plans (as defined in Section 3(1) of ERISA, whether or not subject to ERISA) and
each other employee benefit program, policy, agreement, arrangement or payroll practice, whether or not subject to ERISA or the Code, which provides any bonus, commission, profit-sharing, incentive, change in control, equity or equity-based
severance or termination benefit, or that is a payroll policy, vacation, fringe benefit, deferred compensation, retirement benefits, employment agreement or similar program, policy, agreement or arrangement. 
 “Employees” means those personnel employed by Koppers in connection with the operation of the Business as of
July 24, 2008, each of whom is listed in Section 4.13(a) of the Disclosure Schedule (including those employees currently on inactive status), and non-executive new hires who are hired in, and have terms and conditions of employment
consistent with, the ordinary course of business. For the avoidance of doubt, Employees does not include personnel employed by Koppers 50% or more of whose time spent providing services that extend beyond the operation of the Business. 

 

 4 

 “Encumbrance” means any claim, charge, easement, lien, lease, covenant,
security interest, encumbrance, option, pledge, rights of others or other restriction. 
 “Environmental
Laws” means all applicable laws, statutes, judicial decisions, regulations, ordinances and other requirements of Governmental Entities or duties under common law relating to the protection of health, safety, the environment or natural
resources. 
 “Environmental Permits” means all licenses, permits and other authorizations or registrations
required under any Environmental Laws, including those arising from any construction or modification of any emission sources. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the related regulations and published interpretations. 
 “Estimated Amount” is defined in Section 14.5(c). 
 “Excluded Intangible Property” the names “Koppers” and any names derived therefrom and any rights (ownership,
licensed or otherwise) of the Partnership to use the mark “Koppers,” and the color associated therewith, and any other trademarks, service marks, brand names, Internet domain names, logos, trade dress, trade names, corporate names and
other indicia of origin, and any derivatives of the foregoing, and all registrations and applications for registration of any of the foregoing, and all goodwill associated with and symbolized by the foregoing. 
 “Facility” is defined in the caption to this Agreement. 
 “Final Asset Transfer Amount” is defined in Section 14.5(b). 
 “Final Determination Date” is defined in Section 2.3(d). 
 “Former Employee” is defined in Section 14.4. 
 “Governmental Entity” means any government or any agency, bureau, board, commission, court, department, official,
political subdivision, tribunal or other instrumentality of any government, whether federal, state or local, domestic or foreign. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the related regulations and published interpretations. 
 “Indebtedness” means obligations on account of money borrowed, bonds, debentures, notes or similar instruments,
capitalized leases, letters of credit or guarantees. 
 “Indemnifiable Claim” means any Loss for or against
which any party is entitled to indemnity under this Agreement. 
  

 5 

 “Indemnified Party” means a party entitled to indemnity under this
Agreement. 
 “Indemnifying Party” means a party obligated to provide indemnity under this Agreement.

 “Initial Purchase Price” shall mean an amount equal to one hundred sixty million dollars
($160,000,000.00). 
 “Intangible Property” means the patents and patent applications, trade names,
trademarks and goodwill associated therewith (including registrations or applications therefor), service marks, trade secrets, copyrights (including registrations or applications therefor) and computer software applications, software licenses and
all other items of intellectual or intangible property throughout the world. 
 “Interests” is defined in the
Recitals to this Agreement. 
 “Investment” means, with respect to a particular Person, a minority equity
interest, held directly or indirectly by such Person. 
 “IRS” means the Internal Revenue Service or any
successor entity. 
 “Koppers” is defined in the Recitals to this Agreement. 
 “Koppers Actuary” is defined in Section 14.5(b). 
 “Koppers Benefit Plans” is defined in Section 4.14(a). 
 “Koppers Interests” is defined in the Recitals to this Agreement. 
 “Koppers Litigation” means the lawsuit captioned Nicholas v. Staffieri filed against Koppers in the United States
District Court for the Western District of Pennsylvania on May 13, 1997, and any related or successor claim in any court. 
 “Law” means any constitutional provision, statute, ordinance or other law, rule, regulation, or interpretation of any Governmental Entity and any Order, in each instance as in effect as of the date hereof. 
 “Limited Liability Company” is defined in the Recitals to this Agreement. 
 “Loss” means any action, cost, damage (excluding special, punitive, incidental or consequential damages), disbursement,
expense, liability, loss, deficiency, obligation, penalty or settlement of any kind or nature, whether foreseeable or unforeseeable, including, but not limited to, interest or other carrying costs, penalties, and reasonable legal, accounting and
other professional fees and expenses incurred in the investigation, collection, prosecution and defense of claims and amounts paid in settlement, that may be imposed on or otherwise incurred or suffered by the specified Person. 
  

 6 

 “Material Adverse Effect” means a material adverse effect on the
business, assets, financial condition, revenues or net income of the Partnership, taken as a whole, or on the ability of the Sellers or the Partnership to consummate the transactions contemplated hereby; provided, however, that none of
the following will be deemed, individually or collectively, to constitute a “Material Adverse Effect”: (i) any changes, circumstances or effects resulting from or relating to changes or developments in the economy, interest rates,
financial markets, securities markets or commodity markets or in the political climate generally or in any specific region; (ii) any changes in conditions or developments generally applicable to the industry in which the Partnership is
involved; (iii) any changes in applicable Laws or accounting practices or conventions and (iv) any changes, circumstances or effects arising as a result of or otherwise related to the matters described in Sections 4.9(d) and 4.11(b)(1)
of the Disclosure Schedule. 
 “Material Contract” is defined in Section 4.11(a). 
 “Material Intangible Property” is defined in Section 4.10(a). 
 “Material Licenses” is defined in Section 4.10(a). 
 “Net Working Capital” is defined in Section 2.3(d). 
 “New Union Contract” is defined in Section 8.4. 
 “Non-Consenting Contract” is defined in Section 6.9(b). 
 “Non-Union Employees” means Employees other than Union Employees. 
 “Notice” is defined in Section 6.5(c). 
 “Notice of Adjustment” is defined in Section 2.3(b). 
 “Notified Parties” is defined in Section 6.5(c). 
 “Notifying Parties” is defined in Section 6.5(c). 
 “Objection Notice” is defined in Section 2.3(c). 
 “Order” means any award, decision, decree, injunction, stay, judgment, order, ruling, subpoena, verdict, assessment or
writ. 
 “Owned Material Intangible Property” is defined in Section 4.10(a). 
 “PADEP” means the Pennsylvania Department of Environmental Protection. 
 “PADEP Consent Order” means that Consent Order and Agreement dated December 29, 1994 by and between the PADEP and
Koppers. 
 “Partnership” is defined in the Recitals to this Agreement. 
  

 7 

 “Partnership Agreement” means the Amended and Restated Agreement of
Limited Partnership dated December 1, 1999 by and between Koppers (formerly known as Koppers Industries, Inc.) and Carbon Investments, Inc., as amended. 
 “PBGC” is defined in Section 4.14(b). 
 “Permit” means any license, registration, permit, franchise, certificate of authority, approval, order or other similar
authorization, or any waiver of the foregoing, required to be issued by any Governmental Entity. 
 “Permitted
Encumbrance” means (i) any Encumbrances for Taxes not yet due and payable, (ii) mechanics liens arising or incurred in the ordinary course of business with respect to which the underlying obligation is not delinquent. the rights
of any person claiming by, through or under Buyer, (iii) Encumbrances under equipment leases with third parties entered into in the ordinary course of business and (iv) in the case of tangible property, Encumbrances or defects of title
which do not (a) secure an obligation to pay money in excess of $100,000, or (b) individually or in the aggregate, materially affect the use or value of such property as used in the Business through the Closing Date. 
 “Per Claim Amount” is defined in Section 12.5(b). 
 “Per Claim Deductible” is defined in Section 12.5(b). 
 “Person” means an association, a corporation, a limited liability company, an individual, a partnership, a joint venture,
an estate, a trust, a union or any other entity or organization, including a Governmental Entity. 
 “Purchase Price
Allocation” is defined in Section 13.2. 
 “Retiree Life Plan” means the employee welfare
benefit plans sponsored by Koppers that provides retiree life insurance benefits to certain Union Employees and Non-Union Employees and in which such Union Employees and Non-Union Employees participate immediately prior to the Closing. 

“Retiree Medical Plan” means the employee welfare benefit plan sponsored by Koppers that provides retiree medical
benefits to certain and Non-Union Employees and in which such and Non-Union Employees participate immediately prior to the Closing. 
 “Retirement Plan” means the defined benefit plan of Koppers in which the Employees participate immediately prior to the Closing. 
 “Sellers” is defined in the caption to this Agreement. 
 “Settlement
Agreement” is defined in Section 2.3(c). 
 “Straddle Period” means any Tax period beginning
before and ending after the Closing Date. 
  

 8 

 “Subsidiary” means, with respect to a particular Person, each Person a
majority of the shares of stock or other equity interests of which are owned, directly or indirectly, by such particular Person. 
 “Supply Contract” is defined in Section 3.2(b). 
 “Tangible Assets” is
defined in Section 4.9(b). 
 “Tax” means all amounts paid or payable to a Governmental Entity, whether
foreign, federal, state, county or local taxes, charges, fees, levies, or other assessments of whatsoever kind or nature, including without limitation, all net income, gross income, gross receipts, sales, use, services, ad valorem, occupation,
transfer, franchise, capital stock, profits, license, withholding, payroll, employment, unemployment, excise, estimated, severance, stamp, occupancy or property taxes, custom duties, assessments of charges of any kind whatever (together with any
interest, penalty or addition to tax). 
 “Tax Return” means any return, report, declaration, estimate,
information return or other document (including any related or supporting information) filed or required to be filed with any Governmental Entity with respect to Taxes. 
 “Termination Notice” is defined in Section 6.5(c). 
 “Third Party Rights” is defined in Section 4.10(b). 
 “Title Company” is defined in Section 6.8. 
 “Transferred Employee” is defined in Section 14.1(b). 
 “True-Up Amount” is defined in Section 14.5(c). 
 “Unadjusted Purchase Price” shall mean an amount equal to the Initial Purchase Price, plus (y) the dollar
amount of the “net working capital” line item on the Current Financial Schedule. 
 “Union” is
defined in Section 4.15. 
 “Union Employees” means those Employees whose employment is covered by the
Union Contract. 
 “Union Contract” is defined in Section 4.15. 
 “WARN Act” is defined in Section 4.13(c). 
  

 9 

 ARTICLE II 
 PURCHASE AND SALE OF INTERESTS 
 2.1 Purchase and Sale. At the Closing, upon the terms and
subject to the conditions of this Agreement, (i) Koppers agrees to sell and deliver to Buyer, and Buyer agrees to purchase from Koppers, the Koppers Interests, free and clear of any Encumbrances, and (ii) CI agrees to sell and deliver to
Buyer, and Buyer agrees to purchase from CI, the CI Interests, free and clear of any Encumbrances. 
 2.2 Purchase Price. The total
purchase price for the Koppers Interests (the “Koppers Purchase Price”) shall be an amount equal to (x) 95% of the Adjusted Purchase Price, minus (y) the dollar amount (expressed as a positive number) of the Assumed
Koppers Liabilities. The total purchase price for the CI Interests (the “CI Purchase Price”) shall be an amount equal to 5% of the Adjusted Purchase Price. 
 2.3 Purchase Price Adjustment. 
 (a) As promptly as practicable following the Closing Date, but in no event more than 60 business days after the Closing Date, Koppers shall prepare an updated version of the Current Financial Schedule as of the end of
the day on the Closing Date (the “Closing Financial Schedule”). The Closing Financial Schedule shall reflect the same line items as are included in the Current Financial Schedule and shall be prepared in accordance with the specific
principles set forth on Schedule 2.3 and in a manner consistent with the preparation of the Current Financial Schedule. 
 (b) Upon completion of the Closing Financial Schedule, Koppers shall promptly deliver the same to the Buyer, together with a notice (the “Notice of Adjustment”) setting forth (i) the dollar amount of the “net
working capital” line item on the Closing Financial Schedule and (ii) the dollar amount of the “assumed Koppers liabilities” line item identified on the Closing Financial Schedule. The parties shall provide to one another, and to
each of their respective advisors, reasonable access upon prior written request to such parties’ personnel, advisors, properties, books and records, in each case to the extent relevant to the preparation and analysis of the Closing Financial
Schedule. 
 (c) Following receipt of the Closing Financial Schedule and the accompanying Notice of Adjustment, the Buyer will
be afforded a period of 30 business days (the “30-Day Period”) to review the Closing Financial Schedule and the Notice of Adjustment. At or before the end of the 30-Day Period, the Buyer will either (A) accept the calculation
of the net working capital and/or assumed Koppers liabilities as set forth in the Notice of Adjustment or (B) deliver to the Sellers a written notice (an “Objection Notice”) identifying any calculations relating to the net
working capital and/or assumed Koppers liabilities that the Buyer dispute together with a reasonably detailed explanation as to the basis for and amount of such dispute. The failure by the Buyer to deliver an Objection Notice within the 30-Day
Period shall constitute the Buyer’s acceptance of the amount of the net working capital and/or assumed Koppers liabilities as set forth in the Notice of Adjustment. If the Buyer delivers an Objection Notice in a timely manner, then, within a
further period of 20 business days from the end of the 30-Day Period, the parties and, if desired, their 

  

 10 

 
accountants will attempt to resolve in good faith any disputes relating to the net working capital and reach a written agreement (the “Settlement
Agreement”) with respect thereto. Failing such resolution, any unresolved disputed items relating to the net working capital will be referred for final binding resolution to a mutually acceptable accounting firm (the “Arbitrating
Accountants”), the fees and expenses of which shall be paid by the Buyer. The amount of the net working capital will be deemed to be as determined by the Arbitrating Accountants. Such determination (the “Accountants’
Determination”) shall be (A) in writing, (B) furnished to Buyer and Sellers as soon as practicable after the items in dispute have been referred to the Arbitrating Accountants, (C) made in a manner consistent with the
preparation of the Current Financial Schedule, and (D) nonappealable and incontestable by the parties hereto and each of their respective stockholders, partners, members, managers, Affiliates and successors and not subject to collateral attack
for any reason other than manifest error or fraud. 
 (d) For purposes this Section 2.3, the “Final Determination
Date” shall mean the earliest to occur of (A) the thirty-first business day following the receipt by the Buyer of the Closing Financial Schedule and accompanying Notice of Adjustment provided the Buyer shall have failed to deliver an
Objection Notice to Sellers within the 30-Day Period, (B) the date on which the Buyer gives the Sellers a written notice to the effect that the Buyer has no objection to the Sellers’ determination of the net working capital, (C) the
date on which the Buyer and Sellers execute and deliver a Settlement Agreement, and (D) the date as of which the Buyer and Sellers shall have received the Accountants’ Determination. For purposes of this Agreement, “Net Working
Capital” shall mean the dollar amount of the “net working capital” line item on the Closing Financial Schedule and “Assumed Koppers Liabilities” shall mean the dollar amount of the “assumed Koppers
liabilities” line item on the Closing Financial Schedule, in each case as finally determined in accordance with the procedures in this Section 2.3. 
 (e) Post Closing Adjustment. The following payments shall be made promptly following the Final Determination Date, in each case to
the extent required based upon the final calculation of the Net Working Capital and the Assumed Koppers Liabilities in accordance with this Section 2.3: 
 (i) The “Koppers Adjustment Amount” shall be the amount determined in accordance with the following formula: (x) 95%
of the result obtained by taking (A) the Net Working Capital and subtracting (B) the dollar amount of the “net working capital” line item on the Current Financial Schedule, plus (y) the result obtained
by taking (A) the Assumed Koppers Liabilities and subtracting (B) the dollar amount of the “assumed Koppers liabilities” line item on the Current Financial Schedule. If the Koppers Adjustment Amount is positive,
then Buyer shall deliver or cause to be delivered to Koppers an amount equal to the Koppers Adjustment Amount, plus interest thereon from the Closing Date through the date of payment calculated at the Agreed Rate. If the Koppers Adjustment Amount is
negative, then Koppers shall deliver or cause to be delivered to Buyer an amount equal to the absolute value of the Koppers Adjustment Amount, plus interest thereon from the Closing Date through the date of payment calculated at the Agreed Rate.

  

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 (ii) The “CI Adjustment Amount” shall be the amount determined in
accordance with the following formula: 5% of the result obtained by taking (A) the Net Working Capital and subtracting (B) the dollar amount of the “net working capital” line item on the Current Financial Schedule.
If the CI Adjustment Amount is positive, then Buyer shall deliver or cause to be delivered to CI an amount equal to the CI Adjustment Amount, plus interest thereon from the Closing Date through the date of payment calculated at the Agreed Rate. If
the CI Adjustment Amount is negative, then CI shall deliver or cause to be delivered to Buyer an amount equal to the absolute value of the CI Adjustment Amount, plus interest thereon from the Closing Date through the date of payment calculated at
the Agreed Rate. 
 (f) To the extent there is a disagreement between Koppers and Buyer concerning the amount of the Net
Pension Liability that comprises the assumed Koppers liabilities line item on the Closing Financial Schedule as a result of the failure of Koppers and Buyer to have agreed upon the amount of the Assumed Retirement Liabilities in Section 14.5 of
this Agreement, then the parties agree that they will (i) exclude the Net Pension Liability line item from the calculation of the assumed Koppers liabilities for purposes of this Section 2.3, but otherwise comply with the provisions of
this Section 2.3 with respect to all other amounts, (ii) resolve any disagreement regarding the amount of the Net Pension Liability pursuant to Section 14.5, and (iii) within 10 days of the final determination of the amount of
the Net Pension Liability pursuant to Section 14.5, make any additional payments as required to reflect the final amount of the Net Pension Liability as if it had been included in the original calculation of the assumed Koppers liabilities.

 ARTICLE III 
 CLOSING

 3.1 Closing Date. The Closing shall take place at the offices of Reed Smith LLP, 435 Sixth Avenue, Pittsburgh, Pennsylvania
15219, on the last business day of the month during which the conditions specified in Articles VIII, IX and X shall have been satisfied or waived, or at such other place or on such other date as Koppers and Buyer may agree. The Closing shall be
effective as of 11:59 PM eastern standard time on the Closing Date. 
 3.2 Items to be Delivered at the Closing by Koppers. At the
Closing, Koppers shall deliver or cause to be delivered: 
 (a) A duly and validly authorized and executed copy of the
Assignment and Assumption of Interests (the “Assignment”) in the form of Exhibit A. 
 (b) To the
Limited Liability Company, a copy of the Coal Tar Supply Contract (the “Supply Contract”) in the form of Exhibit B-1 hereto, as revised to reflect the terms described in Exhibit B-2 hereto, duly executed by Koppers.

 (c) Any and all of the Partnership’s and the Limited Liability Company’s records and documents relating to the
Business. 
 (d) An executed certificate of a duly authorized officer of Koppers, dated as of the Closing Date, certifying
that the conditions contained in Sections 9.1(a), 9.1(b), 9.2 and 9.3(b) have been satisfied to the extent such conditions relate to Koppers as a Seller. 
  

 12 

 3.3 Items to be Delivered at the Closing by CI. At the Closing, CI shall deliver or cause to be
delivered: 
 (a) A duly and validly authorized and executed copy of the Assignment. 
 (b) An executed certificate of a duly authorized officer of CI, dated as of the Closing Date, certifying that the conditions contained in
Sections 9.1(a), 9.1(b) and 9.2 have been satisfied to the extent such conditions relate to CI as a Seller. 
 3.4 Items to be Delivered
at the Closing by Buyer. At the Closing, Buyer shall deliver or cause to be delivered: 
 (a) To Koppers, by wire transfer
in funds immediately available, an amount equal to (i) the Unadjusted Purchase Price, minus (ii) the dollar amount (expressed as a positive number) of the “assumed Koppers liabilities” line item on the Current Financial
Schedule (it being understood that, promptly following the Closing, Koppers shall deliver to CI an amount equal to 5% of the Unadjusted Purchase Price, less transaction expenses and fees attributable to CI). 
 (b) To each applicable Seller, a duly and validly authorized receipt of Assignment, which shall have been duly executed by the applicable
Buyer. 
 (c) To Koppers, the Supply Contract in the form of Exhibit B-1 hereto, as revised to reflect the terms
described in Exhibit B-2 hereto, duly executed by Buyer and Koppers. 
 (d) An executed certificate of a duly
authorized officer of Buyer, dated the Closing Date, certifying that the conditions contained in Article X have been satisfied. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF SELLERS 
 Each representation and warranty contained in this Article IV is qualified by the disclosures made with respect to such representation and warranty in
the Disclosure Schedule attached to this Agreement (the “Disclosure Schedule”). Except as set forth on the Disclosure Schedule, Koppers hereby makes the representations and warranties to Buyer set forth in Sections 4.1, 4.2(a), 4.3,
4.4(a), 4.4(c), 4.4(e), 4.5, 4.6, 4.7(a), 4.8, 4.9, 4.10, 4.11, 4.12, 4.13, 4.14, 4.15, 4.16, 4.17, 4.18, 4.19 and 4.20 and CI hereby makes the representations and warranties to Buyer set forth in Sections 4.2(b), 4.4(b), 4.4(d) and 4.7(b).

 4.1 Organization and Related Matters. The Partnership is a limited partnership duly formed, validly existing and in good standing
under the laws of the State of Delaware, and has full partnership power and authority to carry on the Business as currently conducted. At Closing, the Limited Liability Company shall be a limited liability company duly formed, validly existing and
in good standing under the laws of the State of Delaware, and shall have full power and authority to carry on the Business as currently conducted. 
  

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 4.2 Capitalization. 
 (a) Koppers is the record and beneficial owner and holder of the Koppers Interests free and clear of all Encumbrances. At the Closing,
Koppers will transfer to Buyer the Koppers Interests free and clear of all Encumbrances. Other than this Agreement and the Partnership Agreement, there are no Contracts relating to the sale or transfer of the Koppers Interests. The Koppers Interests
have been issued in compliance with all applicable Laws. There are no outstanding contractual obligations of the Partnership, and at Closing there will be no such outstanding obligations of the Limited Liability Company, to repurchase, redeem or
otherwise acquire the Koppers Interests or to provide funds to, or make any investment (in the form of a loan, capital contribution or otherwise) in, any other Person. The Koppers Interests and the CI Interests represent all of the interests in the
Partnership, and at Closing will represent all of the interests in the Limited Liability Company. 
 (b) CI is the record and
beneficial owner and holder of the CI Interests free and clear of all Encumbrances. At the Closing, CI will transfer to Buyer the CI Interests free and clear of all Encumbrances. Other than this Agreement and the Partnership Agreement, there are no
Contracts relating to the sale or transfer of the CI Interests. The CI Interests have been issued in compliance with all applicable Laws. There are no outstanding contractual obligations of the Partnership, and at Closing there will be no such
outstanding obligations of the Limited Liability Company, to repurchase, redeem or otherwise acquire the CI Interests. 
 4.3 Subsidiaries
and Investments. The Partnership has no Subsidiaries or Investments. 
 4.4 Authorization; No Conflicts; Consents. 
 (a) The execution, delivery and performance of this Agreement, the Conversion and the Assignment by Koppers have been duly and validly
authorized by all necessary corporate action on the part of Koppers. This Agreement and, upon consummation of the Closing, the Assignment, constitute the legally valid and binding obligations of Koppers, enforceable against Koppers in accordance
with their terms except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or limiting creditors’ rights generally and by general principles of equity and public
policy. 
 (b) The execution, delivery and performance of this Agreement, the Conversion and the Assignment by CI have been
duly and validly authorized by all necessary corporate action on the part of CI. This Agreement and, upon consummation of the Closing, the Assignment, constitute the legally valid and binding obligations of CI, enforceable against CI in accordance
with their terms except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or limiting creditors’ rights generally and by general principles of equity and public
policy. 
 (c) The execution, delivery and performance of this Agreement, the Conversion and the Assignment by Koppers and the
consummation of the transactions contemplated hereby, will not (i) violate the charter documents or bylaws of either Koppers or the Partnership or the Limited Liability Company, (ii) assuming receipt of Approvals listed in 

  

 14 

 
Section 4.4 of the Disclosure Schedule, violate or constitute a breach or default (whether upon lapse of time and/or the occurrence of any act or
event or otherwise) under any Material Contract or (iii) assuming receipt of the Approvals and Permits listed in Section 4.4 of the Disclosure Schedule, violate any Law. Except for matters identified in Section 4.4 of the
Disclosure Schedule, the execution, delivery and performance by Koppers of this Agreement, and the consummation of the transactions contemplated hereby and thereby, will not require any Approval or Permit by any Governmental Entity or other
Person. The execution, delivery and performance of this Agreement, the Conversion and the Assignment by CI and the consummation of the transactions contemplated hereby, will not (i) violate the charter documents of the Partnership or the
Limited Liability Company, (ii) assuming receipt of Approvals listed in Section 4.4 of the Disclosure Schedule, violate or constitute a breach or default (whether upon lapse of time and/or the occurrence of any act or event or
otherwise) under any Material Contract or (iii) assuming receipt of the Approvals and Permits listed in Section 4.4 of the Disclosure Schedule, violate any Law. 
 (d) The execution, delivery and performance of this Agreement, the Conversion and the Assignment by CI and the consummation of the
transactions contemplated hereby, will not violate the charter documents or bylaws of CI. Except for matters identified in Section 4.4 of the Disclosure Schedule, the execution, delivery and performance by CI of this Agreement, and the
consummation of the transactions contemplated hereby and thereby, will not require any Approval or Permit by any Governmental Entity or other Person. 
 (e) The execution, delivery and performance of the Supply Contract by Koppers has been duly and validly authorized by all necessary corporate action. When executed, the Supply Agreement will constitute the legally
valid and binding obligation of Koppers, enforceable against Koppers in accordance with its terms except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or limiting
creditors’ rights generally and by general principles of equity and public policy. 
 4.5 Legal Proceedings. Except for the
Koppers Litigation, there is no Action pending, or, to Koppers’ knowledge, threatened, against the Partnership or that otherwise relates to the Business, nor is there any Order existing against the Partnership or that otherwise relates to the
Business or the Facility, that individually or when aggregated with one or more other Actions or Orders has had, or would reasonably be expected to have, a Material Adverse Effect. 
 4.6 Compliance with Law. 
 (a) Each of the Business and the Partnership has been conducted in all material respects in accordance with all applicable Laws. The Partnership has not received notice of any violation of any Law applicable to and material to the
Partnership, the Business or the consummation of the transactions contemplated by this Agreement. 
  

 15 

 (b) Except as to Environmental Permits and Environmental Laws, which are addressed
exclusively in Section 4.17 of this Agreement, (i) the Partnership has complied in all material respects with the terms of any applicable Permits, and has not received written notification from any Governmental Entity of any violation of
any Permit or any Law governing the issuance or continued validity thereof which is material to the Partnership, the Business or the consummation of the transactions contemplated by this Agreement and (ii) the Partnership has all material
Permits required in connection with the conduct of the Business. 
 4.7 No Brokers or Finders. 
 (a) No agent, broker, finder, or investment or commercial banker, or other Person engaged by Koppers or an Affiliate of Koppers in
connection with the negotiation, execution or performance of this Agreement or the transactions contemplated by this Agreement is or will be entitled to any brokerage or finder’s or similar fee or other commission as a result of this Agreement
or such transactions except for certain fees payable to UBS Investment Bank as to which fees Sellers shall have full responsibility and neither Buyer nor the Partnership shall have any liability. 
 (b) No agent, broker, finder, or investment or commercial banker, or other Person engaged by CI or an Affiliate of CI in connection with
the negotiation, execution or performance of this Agreement or the transactions contemplated by this Agreement is or will be entitled to any brokerage or finder’s or similar fee or other commission as a result of this Agreement or such
transactions except for certain fees payable to UBS Investment Bank as to which fees Sellers shall have full responsibility and neither Buyer nor the Partnership shall have any liability. 
 4.8 Financial Schedule; No Material Liabilities. 
 (a) Koppers has made available to the Buyer an unaudited financial schedule of the Partnership as of June 30, 2008, a copy of which is attached to this Agreement as Exhibit C (the “Current
Financial Schedule”) setting forth the net assets and assumed liabilities of the Business as of such date. The Current Financial Schedule was prepared in accordance with the policies set forth in Schedule 2.3 and fairly presents in
accordance with the policies set forth in Schedule 2.3 the financial condition of the Business as of June 30, 2008. 
 (b) Koppers has made available to the Buyer a Statement of Operations of the Partnership for the six month period ended June 30, 2008 and the year ended December 31, 2007, a copy of which is attached to this Agreement as
Exhibit C-2 (the “Statements of Operations”) setting forth the results of operations of the Business for each such period. Each of the Statements of Operations fairly presents the financial results of the Business for the
relevant period. In addition, the Statement of Operations reconciles the tax basis results of the Partnership to amounts reflected in Koppers’ underlying books and records which are prepared in accordance with applicable generally accepted
accounting principles. 
 (c) There are no liabilities of the Business, other than the liabilities (i) reflected on the
Current Financial Schedule, (ii) disclosed in Section 4.8(c) of the Disclosure Schedule, (iii) incurred since the date of the Current Financial Schedule in the ordinary course of business, consistent with past practice or
(iv) that would not, individually or in the aggregate, have a Material Adverse Effect. 
  

 16 

 (d) Since the date of the Current Financial Schedule, there has not been any Material
Adverse Effect and, except with respect to actions permitted under Section 6.2 of this Agreement during the period between the date of this Agreement and Closing, the Business has been conducted in the ordinary course consistent with past
practice. Except as set forth in Section 4.8(d) of the Disclosure Schedule, and except with respect to actions permitted under Section 6.2 of this Agreement during the period between the date of this Agreement and Closing, since the
date of the Current Financial Schedule there has not been any (i) change in any of the interests of the Partnership; grant of any option or right to purchase any interests of the Partnership; issuance of any security convertible or exchangeable
into such interests; (ii) amendment to the Partnership Agreement; (iii) entry into, termination of, amendment, waiver or receipt of notice of termination of any Material Contract, except for such entry, termination, amendment or waiver
that has not had and is not reasonably expected to have a Material Adverse Effect; (iv) sale, lease or other disposition of any material asset or property of the Partnership or the Business, or mortgage, pledge or imposition of any Encumbrance,
other than Permitted Encumbrances, on any material asset or property of the Partnership or the Facility; (v) material change in the accounting methods or policies used by the Partnership or (vi) agreement, whether written or oral, to do
any of the foregoing. 
 4.9 Real Property; Tangible Assets. 
 (a) The Partnership owns all of the real property on which the Facility is located, which is described in detail on Section 4.9(a)
of the Disclosure Schedules (the “Real Property”). Except for the Facility, the Partnership does not own or lease any other real property. Except as described in Section 4.9(a) of the Disclosure Schedule, the
Partnership has good and marketable title to the Real Property free and clear of any Encumbrances, other than Permitted Encumbrances. No Person other than the Partnership is entitled to possession of the Real Property, and there are no leases,
subleases or licenses granting to any third party the right of use or occupy of any portion of the Real Property. There are no outstanding options, rights of first refusal or other preferential rights to purchase, lease, occupy or otherwise use the
Real Property or any portion thereof or interest therein. The plants, buildings and structures located on the Real Property currently have (i) access to water supply, storm and sanitary sewer facilities, telephone, gas and electrical
connections, fire protection, drainage and other public utilities, in each case as is necessary for the conduct of the Business as it is presently conducted and (ii) adequate rights of access to dedicated public ways. Except for such plants,
buildings or structures not material to the operation of the Business, the plants, building and structures of the Facility are in good operating condition and in a state of good maintenance and repair, ordinary wear and tear excepted, and are
structurally sound. There are no condemnation or appropriation or similar proceedings pending or, to Koppers’ knowledge, threatened against the Real Property. 
  

 17 

 (b) To Koppers’ knowledge: (i) there are no violations of any zoning
ordinances, building codes or other governmental or regulatory laws affecting the Real Property or planned material changes in any zoning ordinances or building codes or other governmental or regulatory laws, other than Environmental Laws, that
would affect the Real Property, (ii) any variance, conditional use permit, special use permit or other similar approval required for operation of the Facility has been obtained and remains in effect and (iii) other than Environmental Laws,
there are no planned or commenced public improvements related to the Real Property that may result in material special assessments against any part of the Real Property, except in each case as would not have a Material Adverse Effect. 
 (c) Except as set forth in Section 4.9(c) of the Disclosure Schedule, the Partnership owns and has good and marketable title
to all of the tangible assets listed on Schedule 4.9(c) of the Disclosure Schedule (the “Tangible Assets”). Except as described in Section 4.9(c) of the Disclosure Schedule, the Tangible Assets are free and clear
of all Encumbrances other than Permitted Encumbrances and constitute all of the property necessary for the conduct of the Business as currently conducted. 
 (d) Except as set forth in Section 4.9(d) of the Disclosure Schedule, production at the Facility since December 31, 2007 has continued in the ordinary course, consistent with past practice and
substantially similar output has been produced on a monthly basis during 2008 compared to output in the corresponding months during the prior three (3) years. 
 4.10 Intangible Property. 
 (a) Section 4.10(a) of the Disclosure Schedule
lists all Intangible Property which is material to the Business as presently conducted (the “Material Intangible Property”). Part I of Section 4.10(a) of the Disclosure Schedule lists all Material Intangible
Property owned by the Partnership (“Owned Material Intangible Property”). Part II of Section 4.10(a) of the Disclosure Schedule also lists all Material Intangible Property which is owned by third parties and the
agreement pursuant to which Koppers is licensed to use (in connection with the operation of the Business) any Material Intangible Property (“Material Licenses”). The Partnership has good title to the Owned Material Intangible
Property. The Partnership has the right to use the Intangible Property covered by each Material License in the operation of the Business as currently conducted in accordance with the terms of such Material License. 
 (b) As of the date of this Agreement, the Partnership owns or has a valid license to use all of the Material Intangible Property used in
or necessary for the operation of the business of the Partnership and its subsidiaries. 
 (c) Except as set forth in
Section 4.10(c) of the Disclosure Schedule, there is no pending reexamination, opposition, interference, cancellation, invalidation or other Action against the Partnership with respect to any Material Intangible Property. Except as set
forth in Section 4.10(c) of the Disclosure Schedule or as would not be reasonably expected to have a Material Adverse Effect, (i) there are no pending or, to Koppers’ knowledge, threatened written claims against the Partnership
alleging that use of the Material Intangible Property by the Partnership in connection with the Business infringes or conflicts with the rights of others in the Material Intangible Property (“Third Party Rights”); (ii) the
Partnership has not received any complaint, claim or notice alleging that it has violated or, by using the 

  

 18 

 
Material Intangible Property in connection with the Business as now conducted, would violate any Third Party Rights or that any Material Intangible Property
owned by it are invalid or unenforceable; and (iii) no consent judgment or pending litigation in a court of law exists to which the Partnership is a party, which would prevent the Partnership from using any of the Material Intangible Property
in the Business now conducted. 
 (d) To Koppers’ Knowledge, all of the material computer networks, systems, software,
and hardware used by the Facility (the “IT Systems”) are in good working order and the Facility has not experienced any material defects in design, workmanship or material in connection with their use. To Koppers’ Knowledge,
the IT Systems are free of all viruses, worms, trojan horses and other material known contaminants, and do not contain any bugs, errors, or problems of a material nature that could disrupt its operation. 
 (e) Except as identified in Section 4.10(e) of the Disclosure Schedule, the Partnership has not granted material rights to
others in the Material Intangible Property. 
 4.11 Material Contracts. 
 (a) Section 4.11(a) of the Disclosure Schedule identifies all of the following Contracts (each a “Material
Contract”) to which the Partnership is a party or which relates to the Business or the Facility: 
 (i) Contracts for
the purchase or sale of assets by or of the Partnership having a value in excess of $100,000 in any calendar year; 
 (ii)
Contracts containing covenants of the Partnership not to compete in any line of business, with any Person or in any geographical area or not to offer or sell any product or service to any Person or class of Persons; 
 (iii) Any employment contracts between the Partnership or Koppers and any individual and any collective bargaining agreement with respect
to the Business; 
 (iv) Contracts relating to the incurrence of Indebtedness by the Partnership; 
 (v) Contracts with customers involving the provision of goods or services for which the aggregate consideration will exceed $100,000 in
any calendar year; 
 (vi) All Material Licenses; 
 (vii) Contracts which grant to any third party a license to any Owned Material Intangible Property; 
 (viii) Contracts with vendors or suppliers of goods or services for which the aggregate consideration will exceed $100,000 in any calendar
year; 
  

 19 

 (ix) Contracts involving a termination fee or otherwise requiring payment in exchange for
the right to terminate such agreement, in each case in excess of $100,000; 
 (x) Contracts which contain any non-compete,
grant of exclusivity, most-favored-pricing clauses or otherwise operate to restrict or limit the operation of the Partnership or the Business; 
 (xi) Contracts which constitute (a) an outsourcing arrangement of any material systems or operations of the Partnership or (b) a joint venture or joint development agreement; 
 (xii) Any joint venture, alliance, partnership or other similar agreement; 
 (xiii) Any agreement creating or purporting to create an Encumbrance (other than a Permitted Encumbrance) on a material asset; 

(xiv) Any contracts with an Affiliate of either Seller which exceed, in the aggregate, $100,000; and 
 (xv) Any other agreement or commitment not made in the ordinary course of business in excess of $100,000. 
 (b) Except as set forth in Section 4.11(b) of the Disclosure Schedule or as would not be reasonably expected to have a
Material Adverse Effect, (i) the Partnership is not in, nor alleged to be in, default under any Material Contract, (ii) to Koppers’ knowledge, there is no default by any other party to any Material Contract, and (iii) there
exists no event, condition or occurrence which, after notice or lapse of time, or both, is reasonably likely to constitute a default by the Partnership, or to Koppers’ knowledge, any other Person, under a Material Contract. All of the Material
Contracts are in full force and effect and constitute legal, valid and binding obligations of the parties thereto in accordance with their terms, and, except as set forth in Section 4.11(b) of the Disclosure Schedule, will remain in full
force and effect after the Closing without any Approval by any other party, except as contemplated by Sections 4.4 hereof. 
 4.12
Insurance. Section 4.12 of the Disclosure Schedule lists all insurance policies currently held by Koppers that relate to the Business or the Facility together with each loss control survey report provided to Koppers in respect of
the Facility within the past six months. No event relating to the Business or the Partnership has occurred which will result in cancellation of any such insurance policies. Neither the Partnership nor the Business is in default under any such
insurance policies and all premiums owed thereunder have been paid, and no material claims for coverage thereunder have been denied, except for any such failures as would not have a Material Adverse Effect. 
  

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 4.13 Employees. 
 (a) Section 4.13(a) of the Disclosure Schedule sets forth the following information for each Employee: name; job title;
current salary or hourly rate, as applicable, annual target bonus, if any; and service date or any adjusted service date reflecting service credit for prior employment. All of the employees of the Business are employed by Koppers, and the
Partnership does not employ any Persons. 
 (b) Except for the production Employees who are members of the Union,
(i) none of the Employees have, or are subject to, contracts of employment with Koppers or the Partnership, (ii) all Employees are employees “at will” whose employment is terminable without liability therefor (other than
liability for severance payments or liability for retention or stay payments), and (iii) none of the Employees have, or are subject to, contracts or other agreements relating to stay bonuses and offer letters providing for retention or stay
payments, commissions, compensation, special monetary or vacation awards, non-compete provisions or agreements, perquisites, warrants or other benefits to Employees; except in all cases that would not have a Material Adverse Effect. 
 (c) In the three (3) years prior to the date hereof, neither Koppers nor the Partnership has effectuated (i) a “plant
closing” (as defined in the Worker Adjustment and Retraining Notification Act (the “WARN Act”) or any similar Law) affecting employees employed by Koppers in connection with the operation of the Business at the Facility or that
would otherwise be required to be aggregated under the WARN Act with any other layoffs or terminations that would include any Employees or (ii) a “mass layoff” (as defined in the WARN Act, or any similar Law) affecting employees
employed by Koppers in connection with the operation of the Business at the Facility or that would otherwise be required to be aggregated under the WARN Act with any other layoffs or terminations that would include any Employees. Neither Koppers nor
the Partnership has laid off any employees employed by Koppers in connection with the operation of the Business at the Facility in the ninety (90) calendar days prior to the date hereof, nor has Koppers laid off any employees as part of any
layoff that would be required to be aggregated under the WARN Act with any other layoffs or terminations that would include any Employees. 
 4.14 Benefit Plans. 
 (a) All Employee Benefit Plans which provide benefits or coverages to any Employee or
with respect to which the Partnership has or could be reasonably expected to have any obligation to contribute or other liability(collectively, the “Koppers Benefit Plans”) are listed in Section 4.14(a) of the Disclosure
Schedule. The Retirement Plan and any Koppers’ Benefit Plan which permits contributions described in Code Section 401(k) on behalf of Transferred Employees meet the requirements for qualification under Section 401(a) of the Code,
and there are no facts or circumstances that would reasonably be expected to result in the disqualification of such plans under Section 401(a) of the Code. The Partnership does not maintain or contribute to, or otherwise have any liability with
respect to, any Employee Benefit Plans other than the Koppers Benefit Plans. Koppers has made available to Buyer true and complete copies of the most recent Form 5500 Annual Returns/Reports for each Koppers Benefit Plan and the current summary plan
description for each Koppers Benefit Plan. The Partnership and the Employees participate in the Koppers Benefit Plans due to the Partnership’s status as an Affiliate of Koppers. 
  

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 (b) Except as set forth in Section 4.14(b) of the Disclosure Schedule, each
Koppers Benefit Plan has been established and maintained in accordance with its terms and all applicable laws, except where any such non-compliance individually or in the aggregate could not reasonably be expected to result in any material liability
to the Partnership or, following the Closing, Buyer or any of its Affiliates. 
 (c) Except as set forth in
Section 4.14(c) of the Disclosure Schedule, no Koppers Benefit Plan provides, and the Partnership does not have any liability (whether contingent or otherwise) to provide post-termination or retiree welfare benefits (other than pension
benefits) to any Employee or former employee of the Business or any other Person except as may be required by COBRA. 
 (d)
With respect to each Koppers Benefit Plan which is an “employee pension benefit plan” within the meaning of Section 3(2) of ERISA as to which the Partnership or any ERISA Affiliate may have any liability under, or which is subject to
Section 302 of the Code or Title IV of ERISA, (i) no such plan is a “multiemployer plan” within the meaning of Section 3(37) of ERISA or a “multiple employer plan” within the meaning of Section 413(c) of the
Code; (ii) no such plan has been terminated so as to result, directly or indirectly, in any material liability, contingent or otherwise, of the Partnership or any of its ERISA Affiliates under Title IV of ERISA; and (iii) no complete or
partial withdrawal from such plan has been made by any Person so as to result in any material liability to the Partnership or any of its ERISA Affiliates, whether such liability is contingent or otherwise. Except as otherwise indicated in
Section 4.14(d) of the Disclosure Schedule, with respect to any of the Koppers Benefit Plans, no event has occurred and no condition or set of circumstances exists, in connection with which the Partnership or the Business will be
directly or indirectly, through an ERISA Affiliate, subject to any liability, Encumbrance or loss of Tax deduction under ERISA or the Code or under any agreement, instrument, statute, rule of law or regulation pursuant to or under which any of the
Partnership or the Business has indemnified or is required to indemnify any Person against any such liability (except liability for benefit claims and funding obligations payable in the ordinary course). Neither Koppers nor the Partnership, nor any
defined benefit plan maintained by Koppers, the Partnership or any ERISA Affiliates have incurred any material liability to the Pension Benefit Guaranty Corporation (“PBGC”) or the IRS except liabilities to the PBGC pursuant to
Section 4007 of ERISA, all of which have been paid as due. Except as otherwise indicated in Section 4.14(d) of the Disclosure Schedule, no reportable event (as such term is used in section of 4043 of ERISA and for which the 30 day
notice requirement has not been waived) or no “accumulated funding deficiency” (as such term is used in section 412 or 4971 of the Code) has occurred with respect to any of the Koppers Benefit Plans subject to Title IV of ERISA.

 4.15 Labor Relations; Compliance. Koppers and the Partnership are parties to a collective bargaining agreement dated March 28,
2008 (the “Union Contract”) with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Works International Union (the “Union”), which governs all of the hourly Employees
listed in Section 4.13 of the Disclosure Schedules. Except as set forth in Section 4.15 of the 

  

 22 

 
Disclosure Schedule, there has not been, there is not presently pending or existing, and to Koppers’ knowledge there is not threatened, against
Koppers or the Partnership or with respect to the Business (a) any strike, slowdown, picketing or work stoppage, (b) any proceeding based on the alleged violation of any Law pertaining to labor relations or employment matters, including
any charge or complaint filed by an employee or union with the National Labor Relations Board, the Equal Employment Opportunity Commission, or any comparable Governmental Entity, organizational activity, or other labor or employment dispute against
Koppers arising with respect to the Business or the Partnership, except in each case as would not have a Material Adverse Effect, or (c) any application for certification of a collective bargaining agent. 
 4.16 Taxes. 
 (a) The
Partnership qualifies as a partnership for federal and state income tax purposes and has so qualified since its formation. The Partnership has filed or caused to be filed all material Tax Returns that are or were required to be filed by or with
respect to any of them, either separately or as a member of a group of corporations, pursuant to applicable Law. The Partnership has delivered or made available to Buyer copies of all state and local income Tax Returns that pertain solely to the
Partnership during ownership by the Partnership filed for periods beginning on or after January 1, 2005. The Partnership has paid all Taxes that have been shown as due on those Tax Returns. 
 (b) Except as set forth in Section 4.16 of the Disclosure Schedule, none of the United States federal or state income Tax
Returns of the Partnership has been audited by relevant federal or state tax authorities. Except as set forth in Section 4.16 of the Disclosure Schedule, no adjustments have been made by the IRS to the income of the Partnership on the
United States federal income Tax Returns filed by the Partnership. There is no audit presently in progress involving a Tax Return filed by the Partnership for which the Partnership has given or been requested to give a waiver or extension of any
statute of limitations relating to the payment of Taxes for which the Partnership may be liable. Except as set forth in Section 4.16 of the Disclosure Schedule, no audit or other proceeding by any Governmental Entity is pending or
threatened with respect to any Taxes due from or with respect to the Partnership or any Tax Return filed by or with respect to the Partnership. 
 (c) All Taxes that are or were required by Law to be withheld or collected have been duly withheld or collected and, to the extent required, have been paid to the proper Governmental Entity or other Person.

 (d) All Tax Returns filed by (or that include on a consolidated basis) the Partnership are true, correct and complete in
all material respects. 
 (e) The Partnership has no liability for any Tax or any portion of any Tax of any other Person, as
transferee or successor, by contract, intercompany account system or otherwise and has never been a member of an affiliated group filing consolidated Tax Returns for federal, state, local or foreign purposes. 
  

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 (f) No claim has been made in writing by a taxing authority in a jurisdiction where the
Partnership does not file Tax Returns that it is or may be subject to taxation in the jurisdiction with respect to income or assets of the Business. 
 (g) The Partnership will not be required to include any item of income in, or exclude any item of deduction from, taxable income for any taxable period (or portion thereof) ending after the Closing Date as a result of
any transaction, other than a transaction in the ordinary course of business, that occurred prior to the Closing Date. 
 (h)
Sellers make no representation or warranty as to the availability of tax credits under Section 45K of the Code in respect of sales of fuel produced at the Facility for purposes of any Tax Return filed after the date of this Agreement.

 4.17 Environmental. 
 (a) Except as set forth in Section 4.17(a) of the Disclosure Schedule, each of the Business and the Partnership has been conducted in all material respects in accordance with all Environmental Laws and
Koppers has timely applied for, obtained or maintained in effect, as appropriate, all Environmental Permits and is in material compliance with all such Environmental Permits, including without limitation the PADEP Consent Order, except in each case
as would not reasonably be expected to have a Material Adverse Effect. Except as set forth in Section 4.17(a) of the Disclosure Schedule, neither Koppers nor the Partnership has any unresolved notice of any violation of any Environmental
Law or Environmental Permit applicable to the Partnership or the Business. 
 (b) Except as set forth in
Section 4.17(b) of the Disclosure Schedule, there are no pending or, to Koppers’ knowledge, threatened Actions or Orders including, without limitation, contractual claims, or any consent decrees or other agreements in effect that
relate to environmental conditions in, on, under or related to the Facility, except in each case as would not reasonably be expected to have a Material Adverse Effect. 
 (c) Except as set forth in Section 4.17(c) of the Disclosure Schedule, the Partnership has not received any written notice
from a Governmental Entity regarding a new, proposed regulation under any Environmental Law which would be applicable to the Facility specifically and not to other entities with operations in the Business which, if instituted or promulgated, would
have a Material Adverse Effect. 
 (d) Except as set forth in Section 4.17(d) of the Disclosure Schedule, to
Koppers’ knowledge, no polychlorinated biphenyls, underground storage tanks, or landfill, impoundment or other disposal area, is present at the Facility, except as would not reasonably be expected to have a Material Adverse Effect. 

(e) To Koppers’ knowledge, all waste materials generated by the Partnership or the Business have been properly stored,
transported, treated and disposed of in accordance with all applicable Environmental Laws, except as would not reasonably be expected to have a Material Adverse Effect. 
  

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 (f) Koppers has provided Buyer with access to all known material environmental, audits,
investigations, and sampling or similar reports relating to the Facility. 
 (g) No liens pursuant to Environmental Laws have
been or are imposed on the Facility, and to Koppers’ knowledge no such liens have been threatened. 
 4.18 Related Party
Transactions. Upon the consummation of the Closing, no Affiliate or related Person of Sellers will beneficially own or have any other material interest in any assets of the Partnership with a value in excess of $50,000. 
 4.19 No Other Representation. Neither the Sellers nor the Partnership nor any of their respective partners or officers have made, or shall be
deemed to have made, and neither the Sellers nor the Partnership is liable for or bound in any manner by, any express or implied representations, warranties, guaranties, promises or statements pertaining to the Business or the transactions
contemplated under this Agreement, except as specifically and expressly set forth in this Article IV. 
 4.20 Disclosure of
Information. To Koppers’ knowledge, no representation or warranty by the Sellers in this Agreement, and no exhibit, document, certificate, or Disclosure Schedule furnished or to be furnished to the Buyer pursuant hereto in connection with
the transactions contemplated hereby, considered as a whole, contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements or facts contained herein or therein, in
the context of the overall information provided to Buyer, not misleading. 
 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Each representation and warranty contained in this Article V is qualified by the disclosures made with respect to such representations and warranty in the Buyer’s Disclosure Schedule attached to this Agreement (the
“Buyer’s Disclosure Schedule”). Except as set forth in the Buyer’s Disclosure Schedule, Buyer represents and warrants to Sellers as follows: 
 5.1 Organization and Related Matters. The Buyer is a société anonyme duly organized, validly existing and in good standing under the Laws of its jurisdiction of organization. The Buyer has
all necessary corporate power and corporate authority to execute, deliver and perform this Agreement and the Supply Agreement. 
 5.2
Authorization; No Conflicts. 
 (a) The execution, delivery and performance of each of this Agreement and the Supply
Contract has been duly and validly authorized by all necessary corporate action on the part of Buyer. This Agreement constitutes, and when executed and delivered in accordance with this Agreement, the Supply Contract will constitute, the legally
valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws relating to or limiting
creditors’ rights generally and general principles of equity and public policy. The execution, delivery and performance of this Agreement and 

  

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the Supply Contract, and the consummation of the transactions contemplated hereby and thereby, will not (i) violate the charter documents or bylaws of
the Buyer, (ii) violate or constitute a breach or default (whether upon lapse of time and/or the occurrence of any act or event or otherwise under any material Contract to which the Buyer is a party) or (iii) violate any Law. 

(b) Except for matters identified in Section 5.2(b) of the Buyer’s Disclosure Schedule, the execution, delivery and
performance by Buyer of this Agreement and the Supply Agreement, and the consummation of the transactions contemplated hereby and thereby, will not require any Approval or Permit of any Governmental Entity. 
 5.3 Legal Proceedings. There is no Action pending, or, to Buyer’s knowledge, threatened, against Buyer nor is there any Order existing
against Buyer, that individually or when aggregated with one or more other Actions or Orders would prohibit or limit the ability of the Buyer to consummate the transactions contemplated hereby. 
 5.4 No Brokers or Finders. No agent, broker, finder or investment or commercial banker, or other Person engaged by or acting on behalf of Buyer or
any of their Affiliates in connection with the negotiation, execution or performance of this Agreement or the transactions contemplated by this Agreement is or will be entitled to any brokerage or finder’s or similar fee or other commission as
a result of this Agreement or such transactions. 
 5.5 Availability of Funds. At Closing, Buyer will have sufficient funds available
to enable Buyer to consummate the transactions contemplated hereby and to permit Buyer to timely perform all of their obligations under this Agreement. 
 5.6 Qualified Buyer. Buyer is qualified to obtain any permits, licenses or authorizations necessary for Buyer to own the Interests as contemplated by this Agreement and to operate the Facility. 
 5.7 Securities Matters. 
 (a) The Interests to be received by Buyer will be acquired for investment for such Buyer’s own account, not with a view to the distribution of any part thereof, and Buyer have no present intention of selling, granting any participation
in, or otherwise distributing the same. The Buyer does not have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to the Interests.

 (b) Buyer understands that the Interests are characterized as “restricted securities” under the U.S. federal
securities laws inasmuch as such securities are being acquired in a transaction not involving a public offering and that under such laws and applicable regulations such securities may not be resold in the absence of an effective registration
statement covering the Interests or an exemption from registration under the Securities Act of 1933, as amended. 
  

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 ARTICLE VI 
 INTERIM COVENANTS 
 6.1 Access. Koppers shall permit Buyer and its representatives (which term
shall be deemed to include its independent accountants and counsel), to have reasonable access during normal business hours, upon reasonable notice and in such manner as will not unreasonably interfere with the conduct of the Business, to the
Partnership’s properties, books, records and all other information with respect to the Business and the Facility, as Buyer may from time to time reasonably request, and at Buyer’s expense to make copies of such books, records and other
documents as Buyer considers reasonably necessary or appropriate for the purposes of familiarizing themselves with the Business, obtaining any necessary Approvals of or Permits for the transactions contemplated by this Agreement and conducting an
evaluation of the Business; provided, however, that under no circumstances shall Koppers be required to provide to Buyer and its representatives access to, nor shall any of them have rights to make copies of, (a) Tax Returns filed by either
Seller or any of their Affiliates, other than the Partnership, (b) any information or materials required to be kept confidential by Law, or (c) any privileged attorney-client communications or attorney work-product relating
(i) specifically to this Agreement or the transactions contemplated hereby, or (ii) to the Business, unless with respect to (ii) only, Buyer enters into a customary joint-defense agreement if Koppers is advised by its counsel that
such agreement is both necessary and sufficient to avoid waiver of attorney-client privilege. 
 6.2 Conduct of Business. Koppers
shall use its Commercially Reasonable Efforts, and shall cause the Partnership to use its Commercially Reasonable Efforts, to preserve intact the Business, maintain and keep its properties and equipment in good repair, keep available the services of
the current officers, employees, and agents of the Business, and maintain the relations and good will with suppliers, customers, employees and others having business relationships with the Business. Without limiting the generality of the foregoing,
from the date hereof until the Closing Date, without the prior consent of Buyer, except as set forth in Section 6.2 of the Schedule, Koppers will not permit the Partnership to: 
 (a) other than as expressly contemplated by this Agreement, conduct the Business in any manner except in the ordinary course of business,
consistent with the past practice; 
 (b) sell, lease, license, transfer, mortgage, encumber or otherwise dispose of any
material amount of assets except in the ordinary course of business and except for sales of excess inventory consistent with past practice over the last 12 months. 
 (c) adopt or propose any change in its limited partnership documents other than the Conversion, provided that if the Buyer notifies
Koppers (which notice shall be delivered not less than 15 days before the Closing) that it no longer wishes to effect the Conversion, the parties shall make such amendments as are necessary to this Agreement so as to provide for the sale of the
Partnership in its current form rather than in the form of the Limited Liability Company; 
 (d) merge or consolidate with any
other Person; 
  

 27 

 (e) make an Investment in any Person; 
 (f) acquire an amount of assets of any other Person outside of the ordinary course of business; 
 (g) authorize, recommend, propose or announce an intention to adopt a plan of complete or partial liquidation or dissolution; 

(h) (i) grant any material increase in the salary or other compensation of its employees, agents, independent contractors or
representatives, except pursuant to the terms of written agreements in effect on the date hereof, nor grant any material bonus or other extraordinary payment to any employee, agent, independent contractor or representative, enter into any
employment, independent contractor or representative agreement, make any loan to or enter into any material transaction of any other nature with any employee, agent, independent contractor or representative of the Partnership or (ii) amend or
terminate any Koppers Benefit Plan or adopt any new arrangement that would be a Koppers Benefit Plan if such arrangement were in effect as of the date hereof; 
 (i) terminate the employment of any key Employee, other than for “cause”; 
 (j) incur, renew, extend, assume or guarantee any indebtedness for borrowed money, other than working capital in the ordinary course of
business; 
 (k) sell, transfer, license, abandon, cancel, let lapse, fail to renew, fail to continue to prosecute, protect or
defend, or otherwise dispose of, any Owned Material Intangible Property; 
 (l) fail to maintain its books, accounts and
records in the usual manner and consistent with past practice; 
 (m) authorize, issue or sell any additional interests in the
Partnership or make any distribution of any asset of the Partnership, other than cash, provided that any such distribution of cash shall be permitted only to the extent that it would not result in the Partnership having less than $1 million in cash
following such distribution; 
 (n) modify, amend or terminate, or waive or assign any material right under any Material
Contract; 
 (o) enter into any activities unrelated to the Business (except for sales of excess inventory consistent with
past practice over the last 12 months); 
 (p) take any other action that would cause or be likely to cause a breach of the
representations and warranties set forth in Article IV hereof if such representations or warranties were made as of the Closing; or 
 (q) agree or commit to do any of the foregoing. 
  

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 6.3 Approvals and Permits; Filings with Governmental Entities. 
 (a) Koppers shall cause the Partnership to use Commercially Reasonable Efforts to obtain, and will promptly cause the Partnership to
prepare and file all registrations, filings and applications, requests and notices preliminary to, all Approvals and Permits required for the consummation of the transactions contemplated herein, and Buyer agrees to cooperate in good faith with
Koppers and the Partnership in order to obtain all such Approvals and Permits. 
 (b) As soon as reasonably practicable after
the execution of this Agreement, Koppers and Buyer shall make any and all filings required under the HSR Act and any other Law requiring filings with any Governmental Entity with respect to the transactions contemplated hereby. Koppers and Buyer
shall furnish each other such necessary information and reasonable assistance as the other may reasonably request in connection with its preparation of necessary filings or submissions under the provisions of such Laws. Koppers and Buyer will
promptly supply to each other copies of all correspondence, filings or communications, including file memoranda evidencing telephonic conferences, by such party or its Affiliates with any Governmental Entity or members of its staff, with respect to
the transactions contemplated by this Agreement, except for documents filed pursuant to the Hart-Scott Rodino Notification and Report Form or communications regarding the same. 
 (c) Within 5 business days after the execution of this Agreement, Koppers and Buyer shall make initial contact with PADEP to obtain a
Consent Order and Agreement from PADEP as required under Section 18 of the PADEP Consent Order. 
 (d) Buyer and Sellers
shall bear on an equal basis all fees, including filing fees, in connection with filings required under the HSR Act and to obtain the requisite Approval from PADEP. Buyer and Sellers shall pay their own fees and expenses in connection with all other
filings under this Section 6.3. 
 6.4 Efforts. Upon the terms and subject to the conditions of this Agreement, each of the
parties hereto shall use its Commercially Reasonable Efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary, proper or advisable consistent with applicable law to cause the fulfillment of the
conditions to Closing set forth herein and to consummate and make effective in the most expeditious manner practicable the transactions contemplated hereby. 
 6.5 Notification of Certain Matters. 
 (a) Koppers shall give prompt notice to Buyer
of any fact, event or circumstance known to it that (i) is reasonably likely, individually or taken together with all other facts, events and circumstances known to it, to result in any Material Adverse Effect, (ii) would cause or
constitute a material breach of any of its representations, warranties, covenants or agreements contained herein or (iii) would make it impossible for Sellers to consummate the transactions contemplated by this Agreement. 
  

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 (b) Buyer shall give prompt notice to Koppers of any fact, event or circumstance known to
it that (i) is reasonably likely, individually or taken together with all other facts, events and circumstances known to them, to result in any material adverse effect on Buyer’s ability to perform their obligations under this Agreement,
(ii) would cause or constitute a material breach of any of their representations, warranties, covenants or agreements contained herein or (iii) would make it impossible for Buyer to consummate the transactions contemplated by this
Agreement. 
 (c) If Koppers, on the one hand, or Buyer, on the other hand, provides notice pursuant to subsections
(a) or (b) above, respectively (such notice a “Notice”; and the Party providing such notice, the “Notifying Party”), that a fact, event or circumstance known to the Notifying Party would give rise to a
right to termination under Section 11.1(d) of this Agreement, the Party receiving such Notice (the “Notified Party”) shall provide notice to the Notifying Party (a “Termination Notice”) within fifteen days of
receipt of the Notice if the Notified Party intends to exercise such right to terminate as a result of the matters set forth in the Notice; otherwise the Notified Party shall be deemed to have waived such right with respect to the matters set forth
in the Notice. Notwithstanding anything contained herein to the contrary, to the extent that the Notified Parties’ rights with respect to the matters set forth in the Notice are waived as a result of the Notified Parties’ failure to
provide the Notifying Parties with a Termination Notice within the 15 day period (it being understood that such failure shall constitute such a waiver), the matter described in the Notice shall not thereafter (i) be grounds for termination of
this Agreement by the Notified Parties under Article XI hereof or (ii) give rise to a claim by the Notified Parties under Article XII hereof. 
 6.6 Competing Transaction. From the date of this Agreement until the Closing, neither Sellers, nor any of their respective Affiliates, shall initiate, solicit or encourage (including by way of furnishing
information or assistance), or take any other action intended to facilitate, any inquiries or the making of any proposal that constitutes, or may reasonably be expected to lead to, any Competing Transaction, or enter into discussions or negotiate
with any Person in furtherance of any such Competing Transaction (regardless of the Person initiating contact), or agree to any Competing Transaction, or authorize or permit any of the officers or employees of the Partnership or any of its
investment bankers, financial advisors, attorneys, accountants or other representatives to take any such action. For purposes of this Agreement, “Competing Transaction” shall mean any of the following involving the Business:
(i) any sale, lease, exchange, mortgage, pledge, transfer or other disposition of a material portion of the assets of the Business in a single transaction or series of transactions; (ii) any acquisition of interests in the Partnership; or
(iii) any other investment in the Business by a non-affiliate. 
 6.7 Interference with Business. Prior to the Closing, Buyer
shall not communicate with any customer or supplier of the Business or otherwise interfere with the Business without the prior written consent of Koppers, which shall not be unreasonably withheld or delayed; provided, however, that
Koppers shall be entitled to be present and participate in any such approved communication with any customer or supplier. 
 6.8 Real
Estate Matters. Buyer, at its own discretion and sole expense, may order a preliminary title report from a nationally recognized title company (the “Title Company”) with respect to the Real Property. Koppers shall, and shall
cause the Partnership to use Commercially Reasonable Efforts in cooperating with Buyer and the Title Company in 

  

 30 

 
connection with the compilation, review and examination of title to the Real Property and in connection with Buyer’s efforts to obtain a title insurance
policy pursuant thereto, including, by providing customary affidavits and other similar instruments are as reasonably and customarily required by the Title Company for (i) issuance of a non-imputation endorsement and (ii) the deletion of
any standard or printed exceptions, in any title insurance policy issued pursuant thereto, that are customarily deleted by virtue of a seller delivering such instruments in commercial real estate transactions of a similar nature in the state or
province in which the Real Property is located (provided that such affidavits shall be based on the actual knowledge of the signatory). Such cooperation by Koppers and the Partnership shall include providing Buyer and the Title Company copies of,
with respect to the Real Property, reasonably requested existing surveys, maps, GIS reports (including GIS-based compartment maps), aerial photographs, existing title reports and title insurance policies and true, correct and complete copies of the
encumbrance documents identified therein, to the extent the same are in the possession of Koppers or the Partnership, and to the extent the same are not publicly available, such as due to having been recorded in public real estate records. It being
understood that any liability arising pursuant to such customary affidavits described in this Section 6.8 shall be the liability of the Koppers alone, and Buyer shall have no responsibility for such liability. 
 6.9 Koppers Contracts; Environmental Permits. 
 (a) Prior to the Closing, Koppers shall assign to the Partnership, and shall cause the Partnership to assume, those Material Contracts designated with the symbol “***” on Section 4.11(a) of the
Disclosure Schedule (each Material Contract so designated, an “Assignable Contract”). 
 (b) Prior to the
Closing, Koppers and Buyer shall use their respective Commercially Reasonable Efforts to seek to obtain any Approvals required in order for Koppers to assign to the Partnership, and for the Partnership to assume, those Material Contracts designated
with the symbol “##” on Section 4.11(a) of the Disclosure Schedule (each Material Contract so designated, an “Approval Contract”). In the event all Approvals required in order for Koppers to assign to the Partnership,
and for the Partnership to assume, a particular Approval Contract are actually obtained prior to the Closing, Koppers shall assign to the Partnership, and shall cause the Partnership to assume, that particular Approval Contract. In the event any
Approval required in order for Koppers to assign to the Partnership, and for the Partnership to assume, a particular Approval Contract is not obtained prior to Closing (such an Approval Contract, a “Non-Consenting Contract”), then
following the Closing (i) Koppers and Buyer shall use their respective Commercially Reasonable Efforts to seek to obtain the Approvals required in order for Koppers to assign, and for the Partnership to assume, such Non-Consenting Contract and
(ii) to the extent permissible under the terms of such Non-Consenting Contract, Koppers shall remain a party to such Non-Consenting Contract and shall continue to perform and to accept performance under such contract in consultation with the
Limited Liability Company and shall pass through to the Limited Liability Company the benefits and burdens of such Non-Consenting Contract as if the Limited Liability Company were party to such Non-Consenting Contract. The Buyer shall, or shall
cause the Limited Liability Company to, reimburse Koppers for all amounts paid and expenses incurred in connection with the performance of its obligations under such Non-Consenting Contract. 
  

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 (c) Notwithstanding subsection (b) above, the parties agree that in lieu of Koppers
seeking to assign to the Partnership the lease schedules covering the Dell Leased Equipment, Koppers may elect to purchase the Dell Leased Equipment and assign such equipment to the Partnership prior to Closing. 
 (d) Koppers and Buyer shall use their respective Commercially Reasonable Efforts to seek to obtain the Approvals required in order to
transfer to Buyer prior to Closing the Environmental Permits or the applications for Environmental Permits, as applicable, listed in Section 4.4 of the Disclosure Schedule. 
 (e) Unless otherwise requested by the Buyer, Koppers shall use its Commercially Reasonable Efforts to assign to the Buyer or the
Partnership as of the Closing the rights (and the Buyer or the Partnership shall assume the corresponding obligations) of Koppers relating to the continued use of the pilot plant referenced in Section 4.9(d) of the Disclosure Schedule.
In the event that such rights and obligations cannot be transferred as of the Closing, following the Closing Koppers shall (unless advised by Buyer that Buyer does not want Koppers to) pass to the Limited Liability Company the benefits and burdens
of Koppers relating to the continued use of such pilot plant in accordance with the provision in Section 6.9(b) relating to Non-Consenting Contracts. 
 6.10 Tar Supply Contracts. As promptly as practicable following the date hereof, but in any event at or prior to Closing, each of Koppers and Buyer shall execute and deliver (or shall cause its appropriate
affiliate to execute and deliver) the tar supply contracts attached hereto as Exhibits D, E, F and G, respectively. 
 6.11
Preservation of Rights; Assistance. 
 (a) Until the Closing, Koppers shall cause the Partnership to use Commercially
Reasonable Efforts to preserve intact and defend all of its rights under any coal supply Contracts (including but not limited to those set forth in items 1-6 of Section 4.11(a) of the Disclosure Schedule), and shall keep Buyer fully
informed of all material communications (written or oral) with the counterparties thereto. 
 (b) Following the Closing,
Koppers shall (i) use its Commercially Reasonable Efforts to make available to the Buyer and the Limited Liability Company any personnel whose assistance, testimony or presence the Buyer reasonably deems necessary in evaluating, defending or
asserting any claim relating to such Contracts, as well as any documents, records and other materials in the possession of Koppers that are reasonably required by the Buyer in connection therewith, and (ii) otherwise cooperate with the Buyer
and the Limited Liability Company at Buyer’s reasonable request and at Buyer’s expense in connection with such matters. 
  

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 ARTICLE VII 
 ADDITIONAL CONTINUING COVENANTS 
 7.1 Post-Closing Access. Each party shall use Commercially
Reasonable Efforts to cooperate with the other party to make available to the other party all financial, Tax and other information reasonably required by the other party in connection with (a) any audit of the other party by the other
party’s outside accountants, or any audit or other investigation by any taxing authority or any required reports or submissions (including any consolidated financial or statutory reporting obligations of Koppers or its Affiliates) to
Governmental Entities with respect to the Business and (b) matters relating to insurance coverage of the Business, third-party litigation, claims, proceedings and investigations provided that neither Sellers nor Buyer shall be required
to provide the others with Tax Returns. Buyer shall cause such information to be preserved after the Closing Date for the same period of time that Buyer’s Affiliates preserve such information with respect to similar assets owned by such
Affiliates, and thereafter will dispose thereof only after Buyer shall have given (or caused to be given) Koppers ninety days’ prior written notice of such impending disposition and the opportunity (at Koppers’ expense) to remove and
retain such information. Buyer acknowledges that the Partnership has an obligation to the Sellers similar to the obligation of the Buyer hereunder. Any information obtained pursuant to this Section 7.1 or pursuant to any other section hereof
providing for the sharing of information shall be subject to Section 15.2. 
 7.2 Excluded Intangible Property. Buyer
acknowledges and agrees that any rights to ownership or use by the Partnership of the Excluded Intangible Property shall cease upon the Closing. From and after the Closing, Buyer shall, and shall cause the Partnership and the Subsidiaries to, not
engage in any use of any such Excluded Intangible Property in connection with any advertising, marketing or solicitation efforts or otherwise. 
 7.3 Insurance. To the extent that (i) there are any third-party insurance policies maintained by Koppers, or any policies which Koppers became the beneficiary of upon its purchase of the Facility, which, although expired, may
continue to provide coverage for prior periods (the “Koppers’ Insurance Policies”) covering any loss, liability, damage or expense relating to the assets, business, operations, conduct, products and employees (including former
employees) of, and any aspect of the Business at, the Facility relating to or arising out of occurrences prior to the Closing (and such loss, liability, damage or expense, a “Facilities Liability”) and (ii) the Koppers’
Insurance Policies continue to permit claims after the Closing to be made with respect to such Facility Liabilities, Koppers agrees to cooperate with the Buyer in submitting, and to submit any such claims on behalf of the Buyer or the Facility under
the Koppers’ Insurance Policies with respect to such Facility Liabilities. To the extent Koppers’ actually receives a cash payment under a Koppers’ Insurance Policy with respect to a Facilities Liability, Koppers agrees to pay over to
Buyer the amount of such cash payment, less the amount of any loss recognized by Koppers prior to the Closing with respect to such Facilities Liability. 
  

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 ARTICLE VIII 
 GENERAL CONDITIONS TO CLOSE 
 The obligations of the parties to effect the Closing shall be subject
to the following conditions: 
 8.1 No Orders; Legal Proceedings. No Law or Order shall have been enacted, entered, issued,
promulgated or enforced by any Governmental Entity, nor shall any Action have been instituted and remain pending by any Governmental Entity on what would otherwise be the Closing Date, which prohibits or restricts or would (if successful) prohibit
or restrict the transactions contemplated by this Agreement. 
 8.2 Regulatory Filings. Any applicable waiting period under the HSR
Act and any other Laws requiring filings with any Governmental Entity as provided in Section 6.3(b) shall have expired or been terminated. 
 8.3 Union Matters. Buyer shall have either (i) recognized the Union and assumed in writing the Union Contract and delivered to Koppers signed copies of such assumption or (ii) entered into a new contract with the Union
which replaces the Union Contract effective as of the Closing Date (the “New Union Contract”) and delivered to Koppers signed copies of the New Union Contract. 
 ARTICLE IX 
 CONDITIONS TO OBLIGATIONS OF BUYER 
 The obligations of Buyer to effect the Closing shall be subject to the following conditions except to the extent waived in writing by Buyer: 

9.1 Representations and Warranties and Covenants of Sellers. The obligation of Buyer to consummate the transactions contemplated by this
Agreement is subject to the fulfillment, on or prior to the Closing Date, of each of the following conditions (any or all of which may be waived by Buyer in whole or in part to the extent permitted by applicable Law): 
 (a) The representations and warranties of Sellers set forth in this Agreement qualified as to materiality shall be true and correct, and
those not so qualified shall be true and correct in all material respects, when made and at and as of the Closing Date as though made on the Closing Date, except to the extent such representations and warranties expressly relate to an earlier date
(in which case such representations and warranties qualified as to materiality shall be true and correct, and those not so qualified shall be true and correct in all material respects, on and as of such earlier date); and 
 (b) Each Seller and the Partnership shall have performed and complied in all material respects with all obligations and covenants required
by this Agreement to be performed or complied with by such Seller and the Partnership, respectively, on or prior to the Closing Date. 
  

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 (c) Each Seller shall deliver to the Buyer a duly executed certificate stating that such
Seller is not a foreign person within the meaning set forth in Treasury Regulation Section 1.1445-2(b)(2)(iv). If such certificate is not delivered to the Buyer by a Seller, the Buyer shall be entitled to withhold 10% of amounts otherwise
payable to such Seller. 
 (d) Koppers shall have assigned to the Partnership, and the Partnership shall have assumed, the
Assignable Contracts. 
 (e) The Partnership shall have been converted to the Limited Liability Company pursuant to
Section 18-214 of the Limited Liability Company Act of the State of Delaware. 
 (f) Koppers and the Buyer shall have
entered into a transitional services agreement with respect to those services described on Schedule 9.1(f) to be provided on a transitional basis by Koppers to the Limited Liability Company following the Closing for the period identified on
such schedule and on such other customary terms mutually agreeable to the parties. 
 Notwithstanding anything in this
Agreement to the contrary, the parties agree that the matters described Sections 4.9(d) and 4.11(b) of the Disclosure Schedule shall not give rise to or otherwise form the basis upon which Buyer relieved of its obligation under this Agreement
to effect the Closing. 
 9.2 Closing Documents. Each of the Sellers shall have delivered the Assignment and all of the resolutions,
certificates, documents and instruments required by each Seller or the Partnership by this Agreement on or prior to the Closing. 
 9.3
Approvals and Permits. 
 (a) Buyer shall have either entered into a new Consent Order and Agreement with PADEP or
executed an assignment and assumption agreement approved by PADEP with respect to the PADEP Consent Order, in either case with terms and conditions substantially the same as those in the PADEP Consent Order. 
 (b) All requisite approvals or authorizations required from any Governmental Entity for the consummation of the transactions herein shall
have been duly obtained and all applicable mandatory waiting periods shall have expired or otherwise terminated. 
 (c) All
requisite Approvals shall have been obtained with respect to the items set forth in Section 4.4 of the Disclosure Schedule; provided, however, that (i) the receipt of any Approvals required in order for Koppers to
assign to the Partnership, and for the Partnership to assume, any of the Approval Contracts shall not constitute a condition to Buyer’s obligation to consummate the transactions contemplated by this Agreement and (ii) with respect to any
Approvals required in connection with the transfer of the Environmental Permits set forth in item 8 of Section 4.4 of the Disclosure Schedule, the obligation of Buyer to consummate the transactions contemplated by this Agreement shall be
subject only to the condition that Buyer shall have received reasonably satisfactory assurances from the relevant Governmental Entity indicating that it will not object to the transfer of such Environmental Permit in connection with the transactions
contemplated hereby. 
  

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 9.4 Release of Liens. All Encumbrances on the assets of the Partnership arising under
Koppers’ senior secured credit facility shall have been released. 
 ARTICLE X 
 CONDITIONS TO OBLIGATIONS OF SELLERS 
 The obligations of Sellers to effect the Closing shall be subject to the following conditions, except to the extent waived in writing by Sellers: 
 10.1 Representations and Warranties and Covenants of Buyer. The obligations of Sellers to consummate the transactions contemplated by this Agreement are subject to the fulfillment, on or prior to the Closing
Date, of each of the following conditions (any or all of which may be waived by Sellers in whole or in part to the extent permitted by applicable Law): 
 (a) The representations and warranties of Buyer set forth in this Agreement qualified as to materiality shall be true and correct, and those not so qualified shall be true and correct in all material respects, when
made and at and as of the Closing Date as though made on the Closing Date, except to the extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties qualified as to materiality
shall be true and correct, and those not so qualified shall be true and correct in all material respects, on and as of such earlier date); and 
 (b) Buyer shall have performed and complied in all material respects with all obligations and covenants required by this Agreement to be performed or complied with by each Buyer on or prior to the Closing Date.

 10.2 Closing Documents. Buyer shall have delivered all of the resolutions, certificates, documents and instruments required of it
by this Agreement on or prior to the Closing. 
 ARTICLE XI 
 TERMINATION OF OBLIGATIONS; SURVIVAL 
 11.1 Termination of Agreement.
Anything herein to the contrary notwithstanding, this Agreement and the transactions contemplated by this Agreement shall automatically terminate, without any notice, demand or action by either party, if the Closing does not occur on or before the
close of business on September 30, 2008 unless extended by mutual consent in writing by Buyer and Koppers and otherwise may be terminated at any time before the Closing as follows and in no other manner: 
 (a) Mutual Consent. By mutual consent in writing by Buyer and Koppers. 
 (b) Conditions to Buyer’s Performance Not Met. By Buyer by written notice to Koppers if any event occurs or condition exists
which would render impossible the satisfaction of one or more conditions to the obligations of Buyer to consummate the transactions contemplated by this Agreement as set forth in Articles VIII or IX. 
  

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 (c) Conditions to Sellers’ Performance Not Met. By Koppers by written notice
to Buyer if any event occurs or condition exists which would render impossible the satisfaction of one or more conditions to the obligation of Sellers to consummate the transactions contemplated by this Agreement as set forth in Articles VIII or X.

 (d) Material Breach. By Buyer or Koppers if there has been a material misrepresentation or other material breach by
the other party in its representations, warranties and covenants set forth herein; provided, however, that the breaching party shall have ten business days after receipt of notice from the other party of its intention to terminate this Agreement if
such breach continues, in which to cure such breach. For the avoidance of doubt, the parties agree that matters described Sections 4.9(d) and 4.11(b) of the Disclosure Schedule shall not give rise to or otherwise form a basis upon which Buyer
may terminate this Agreement under this Section 11.1. 
 (e) Change in Law. By either Koppers or Buyer if there
shall be any change in any Law that makes consummation of the transactions contemplated hereby illegal or otherwise prohibited. 
 (f) Governmental Action. By Buyer or Koppers, if any court or Governmental Entity of competent jurisdiction in the United States shall have issued an Order or taken any other action, permanently prohibiting the transactions
contemplated by this Agreement, and such Order shall have become final and non-appealable. 
 The party desiring to terminate this Agreement
shall give notice of such termination to the other party. 
 11.2 Effect of Termination. In the event that this Agreement shall be
terminated pursuant to Section 11.1, all further obligations of the parties under this Agreement shall terminate; provided that the obligations of the parties contained in Sections 15.2, 16.13, 16.14 and 16.15 shall survive any such
termination, and that a termination under Section 11.1 shall not relieve either party of any liability for a breach of, or for any misrepresentation under this Agreement, or be deemed to constitute a waiver of any available remedy (including
specific performance, if available) for any such breach or misrepresentation. 
 ARTICLE XII 
 INDEMNIFICATION 
 12.1 Obligations
of Koppers. Subject to the provisions of Sections 12.5 and 12.7, from and after the Closing, Koppers agrees to indemnify and hold harmless Buyer and its officers, directors, agents and Affiliates from and against any and all Losses, as a result
of, or based upon or arising from, directly or indirectly: 
 (a) any inaccuracy in or breach of any of the representations or
warranties made by Koppers in this Agreement (which for the purpose of determining Losses for indemnification purposes shall exclude any representation and warranties made exclusively by CI in this Agreement); and 
  

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 (b) any breach or nonperformance of any of the other covenants and agreements made by
Koppers in this Agreement other than any breach or nonperformance which has been waived by Buyer in writing. 
 (c) any Action
or Order under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, to the extent arising from or relating to hazardous substances generated by the Business or arranged for treatment or disposal by the
Partnership prior to or as of the Closing; 
 (d) the Koppers Litigation; and 
 (e) the complaint described in item 5 of Section 4.17(b) of the Disclosure Schedule. 
 12.2 Obligations of CI. Subject to the provisions of Sections 12.5 and 12.7, from and after the Closing, CI agrees to indemnify and hold harmless
Buyer and its officers, directors, agents and Affiliates from and against any and all Losses as a result of, or based upon or arising from, directly or indirectly: 
 (a) any inaccuracy in or breach of any of the representations or warranties made by CI in Sections 4.2(b), 4.4(b), 4.4(d) and 4.7(b) of
this Agreement (which for the purpose of determining Losses for indemnification purposes shall exclude any representation and warranties made exclusively by Koppers in this Agreement); and 
 (b) any breach or nonperformance of any of the other covenants and agreements made by CI in this Agreement other than any breach or
nonperformance which has been waived by Buyer in writing. 
 12.3 Obligations of Buyer. Subject to the provisions of
Section 12.5, from and after the Closing, Buyer agrees to indemnify and hold harmless Sellers and their respective officers, directors, agents and Affiliates from and against any and all Losses as a result of, or based upon or arising from,
directly or indirectly: 
 (a) any inaccuracy in or breach of any of the representations or warranties made by Buyer in this
Agreement; 
 (b) any breach or nonperformance of any of the other covenants and agreements made by Buyer in this Agreement
other than any breach or nonperformance which has been waived by Koppers in writing; and 
 (c) the Conversion. 
  

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 12.4 Procedure. 
 (a) Notice. Written notice to the Indemnifying Party of the existence of a third-party claim shall be given by the Indemnified
Party within fifteen days after its receipt of a written assertion of liability from the third party. The Indemnified Party shall not be foreclosed by any failure to provide timely notice of the existence of a third party claim to the Indemnifying
Party, except to the extent that the Indemnifying Party has been materially prejudiced as a direct result of such delay. 
 (b) Defense. The Indemnifying Party shall be entitled to assume the defense and control of any Indemnifiable Claim with experienced counsel reasonably satisfactory to the Indemnified Party; provided, however that if in the reasonable
opinion of counsel for the Indemnified Party, there is an actual conflict of interest between the Indemnified Party and the Indemnifying Party, the Indemnifying Party shall withdraw from the defense of such Indemnifiable Claim. In the event the
Indemnifying Party assumes the defense of any Indemnifiable Claim, it shall promptly notify the Indemnified Party of its intention to do so, provided such notice includes an acknowledgement that the claim is an Indemnifiable Claim under the terms of
this Agreement. If the Indemnifying Party does not assume such defense, the Indemnified Party may retain counsel to assume such defense and may compromise or settle the claim on behalf of and for the account and risk of the Indemnifying Party, who
shall be responsible for the reasonable fees and expenses of such counsel and shall be bound by the result of such compromise or settlement. 
 (c) Settlement Limitations. Notwithstanding anything in this Section 12.4 to the contrary, the Indemnifying Party shall not, without the written consent of the Indemnified Party, settle or compromise any
Indemnifiable Claim or permit a default or consent to entry of any judgment unless the claimant and the Indemnifying Party provide to the Indemnified Party an unqualified release from all liability in respect of the claim. Notwithstanding the
foregoing, if a settlement offer solely for money damages is made by the applicable third party claimant, and the Indemnifying Party notifies the Indemnified Party in writing of the Indemnifying Party’s willingness to accept the settlement
offer and pay the amount called for by such offer, and the Indemnified Party declines to accept such offer, the Indemnified Party may continue to contest such claim, free of any participation by the Indemnifying Party, and the amount of any ultimate
liability with respect to such Indemnifiable Claim that the Indemnifying Party has an obligation to pay hereunder shall be limited to the lesser of (i) the amount of the settlement offer that the Indemnified Party declined to accept or
(ii) the aggregate Losses of the Indemnified Party with respect to such claim. If the Indemnifying Party makes any payment on any claim, the Indemnifying Party shall be subrogated, to the extent of such payment, to all rights and remedies of
the Indemnified Party to any insurance benefits or other claims of the Indemnified Party with respect to such claim. 
  

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 12.5 Limitations on Indemnification. 
 (a) Any Indemnifiable Claim shall be limited to the amount of actual damages sustained by the Indemnified Party by reason of a breach or
nonperformance by the Indemnifying Party, less (i) any Tax benefits by the Indemnified Party based on the present value thereof, discounted at the Agreed Rate as of the time of such claim, by reason of such Losses and (ii) the dollar
amount of any insurance proceeds paid to the Indemnified Party with respect to such Losses; provided, that payment of such Indemnifiable Claim shall not be withheld pending resolution or final payment with respect to any such insurance proceeds; and
provided further, that any insurance proceeds paid to the Indemnified Party with respect to Losses for which the Indemnified Party has previously received payment pursuant to this Article XII shall be promptly delivered to the Indemnifying Party.

 (b) Except in the case of breaches of the representations and warranties in Sections 4.1, 4.2(a), 4.4(a) and 4.4(c)(i),
Koppers shall not be required to indemnify Buyer under Section 12.1 unless the amount of the claim for Losses exceeds $100,000 per individual claim or series of related claims arising from the same set of facts or circumstances (the
“Per Claim Amount”) and unless the aggregate amount of all claims for which indemnity would otherwise be payable by Koppers to Buyer under Section 12.1 exceeds $1,000,000 (the “Deductible Amount”), and, in such
event, Koppers shall be responsible only for the amount in excess of the Deductible Amount. Except in the case of breaches of the representations and warranties in Sections 4.2(b) and 4.4(b), CI shall not be required to indemnify Buyer under
Section 12.2 unless the amount of the claim for Losses exceeds the Per Claim Amount and unless the aggregate amount of all claims for which indemnity would otherwise be payable by CI to Buyer under Section 12.2 exceeds the Deductible
Amount, and, in such event, CI shall be responsible only for the amount in excess of the Deductible Amount. Notwithstanding any provision of this Agreement to the contrary, but subject only to Section 12.5(c) below, Koppers’ indemnity
obligations under Section 12.1 shall be limited, in the aggregate, to ten percent (10%) of the Koppers Purchase Price. 
 (c) With respect to any breaches or inaccuracies of the representations and warranties in Sections 4.1, 4.2(a), 4.4(a), 4.4(c)(i) and 4.7(a), the maximum aggregate liability of Koppers will equal the amount of the Koppers Purchase Price and
with respect to any indemnity obligation of Koppers pursuant to Section 12.1(d), the Per Claim Amount, Deductible Amount and aggregate liability limitation set forth in Section 12.5(b) shall not apply. With respect to any breaches or
inaccuracies of the representations and warranties in Sections 4.2(b), 4.4(b), 4.4(d) and 4.7(b), the maximum aggregate liability of CI will equal the amount of the CI Purchase Price. 
 (d) Buyer shall not be required to indemnify Sellers under Section 12.3 unless with respect to any such claim the amount thereof
shall exceed the Per Claim Amount and the aggregate of all amounts for which indemnity would otherwise be payable by Buyer in respect of all such claims by Sellers exceeds the Deductible Amount, and in such event, Buyer shall be responsible only for
the amount in excess of the Deductible Amount. 
 (e) For the avoidance of doubt, the parties acknowledge and agree that the
matters described Sections 4.9(d) and 4.11(b) of the Disclosure Schedule shall not give rise to or otherwise form a basis upon which Buyer may seek indemnification under this Agreement. 
 12.6 Survival of Obligations. The representations and warranties made by Koppers in Sections 4.2(a) and 4.4(a) and the representations and
warranties made by CI in Sections 4.2(b) and 4.4(b) shall survive indefinitely. All other representations and warranties of Sellers 

  

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made in this Agreement or in any exhibit, schedule, or the Supply Contract shall survive any investigation made by any party hereto and the Closing of the
transactions contemplated hereby until the eighteen (18) month anniversary of the Closing Date; provided, however, that the representations and warranties in Section 4.16 shall survive until thirty (30) days after the expiration of
the applicable statute of limitations. No party will be liable to another under any warranty or representation after the applicable expiration of such warranty or representation; provided, however, that if a claim or notice is given
under this Article XII with respect to any representation or warranty prior to the applicable expiration date, such claim may be pursued to resolution notwithstanding expiration of the representation or warranty under which the claim was brought.

 12.7 Tax Treatment. All payments made pursuant to this Article XII and Article XIII shall be treated as an adjustment to the
Purchase Price for all tax purposes. If, contrary to the intent of the parties expressed above, any payment made pursuant to this Article XII or Article XIII is treated as taxable income of the Indemnified Party, then the payor shall indemnify and
hold harmless the Indemnified Party from any liability for Taxes attributable to the receipt of such payment, net of any off-setting tax benefit to the Indemnified Party pursuant to Section 12.5(a). 
 12.8 Remedies Exclusive. The remedies provided for in this Article XII, as limited by the limitations set forth in this Article XII, shall
constitute the sole and exclusive remedies for any post-Closing claims made for breach of this Agreement or in connection with the transactions contemplated hereby. Each party hereby waives any provision of Law to the extent that it would limit or
restrict the agreement contained in this Section 12.8. Notwithstanding anything to the contrary elsewhere herein, no party or its Affiliates shall seek or be liable, whether under this Article XII or otherwise, for any special, incidental,
punitive or consequential damages, including, but not limited to, loss of profits, revenue or income, or loss of business reputation or opportunity relating to any breach or alleged breach of this Agreement. 
 ARTICLE XIII 
 TAX MATTERS

 13.1 Tax Covenants. 
 (a) For purposes of calculating the amount of fuel sales which qualify for tax credits under Section 45K of the Code, Sellers shall be entitled to the benefit of tax credits generated in respect of sales made
through the end of the business day on the Closing Date. 
 (b) Buyer covenants that it will not cause or permit any of their
Affiliates to make or change any Tax election, amend any Tax Return or take any Tax position on any Tax Return, take any action, omit to take any action or enter into any transaction that results in any increased Tax liability or reduction of any
Tax asset of Sellers or the Partnership in respect to any Tax period including the Closing Date or ending on or before the close of business on the Closing Date. 
  

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 13.2 Allocation. Within one hundred twenty (120) days after the Closing Date, Buyer will
prepare and deliver to Sellers a draft allocation of the Adjusted Purchase Price (and all other capitalized costs) among the assets of the Partnership (the “Draft Purchase Price Allocation”). Buyer will prepare the Draft Purchase
Price Allocation in accordance with Code Section 1060 and the Treasury regulations thereunder (and any similar provision of state, local or foreign law, as appropriate). Each party shall timely and properly prepare, execute, file and deliver
all such documents, forms and other information as the other party may reasonably request to prepare the Draft Purchase Price Allocation. Any objection by Sellers, and the resolution of any dispute between the parties, regarding the Draft Purchase
Price Allocation shall be resolved in accordance with the procedures outlined in Section 2.3 above. The “Purchase Price Allocation” shall mean the Draft Purchase Price Allocation together with any revisions thereto pursuant to this
Section 13.2. Buyer and Sellers and their respective Affiliates, if any, shall report, act and file Tax Returns (including, but not limited to Internal Revenue Service form 8594) in all respects and for all purposes consistent with such
Purchase Price Allocation. Neither Buyer nor Sellers shall take any position (whether in audits, tax returns or otherwise) that is inconsistent with such Purchase Price Allocation unless required to do so by applicable Law. 
 13.3 Returns and Reports and Payment of Taxes. Koppers shall file or cause to be filed when due all Tax Returns with respect to Taxes that are
required to be filed by or with respect to the Partnership for taxable years or periods ending on or before the Closing Date, and Sellers shall pay any Taxes due in respect of such Tax Returns. Buyer shall file or cause to be filed when due all Tax
Returns with respect to Taxes that are required to be filed by or with respect to the Partnership for taxable years or periods ending after the Closing Date and shall pay any Taxes due in respect of such Tax Returns, other than Taxes that are the
responsibility of Koppers under Section 13.4 below. 
 13.4 Allocation of Tax Liability . The Sellers shall be responsible for,
and shall indemnify Buyer for (i) any and all Taxes levied or imposed on the Partnership for any period ending prior to or on the Closing Date, including the portion of any Straddle Period ending on the Closing Date and (ii) all Taxes of
any member of an affiliated, consolidated, combined or unitary group of the LLC (or any of its predecessors) that is or was a member on or prior to the Closing Date, pursuant to Treas. Reg. 1.1502-6 or any analogous or similar provision of state,
local or foreign Law. The portion of any Taxes that are payable with respect to a Straddle Period that are allocable to the portion of the Straddle Period ending on the Closing Date shall, (i) in the case of Taxes that are either (x) based
upon or related to income, receipts or shareholders’ equity or (y) imposed in connection with any sale, transfer or assignment or any deemed sale, transfer or assignment of property (real or personal, tangible or intangible) be deemed
equal to the amount payable if the Tax year ended on the Closing Date and (ii) in the case of Taxes (other than those described above in clause (i)) imposed on a periodic basis or otherwise measured by the level of any item, be deemed to be the
amount of such Taxes for the entire Straddle Period multiplied by a fraction, the numerator of which is the number of calendar days in the portion of the Straddle Period ending on the Closing Date and the denominator of which is the number of
calendar days in the entire Straddle Period. Notwithstanding anything to the contrary in this Section 13.4, Buyer, on the one hand, and Sellers, on the other hand, shall each be responsible for one-half of any applicable real estate transfer
taxes payable as a result of the Closing. 
  

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 13.5 Refunds. Any refunds (including interest thereon) of Taxes paid by Sellers shall be for the
account of Sellers. Any refunds (including interest thereon) of Taxes paid by Buyer shall be for the account of Buyer. Buyer agrees to assign and promptly remit to Sellers all refunds (including interest thereon) of Taxes which Sellers are entitled
to hereunder and which are received by Buyer or any Affiliate of Buyer. Sellers agree to assign and promptly remit to Buyer all refunds (including interest thereon) of Taxes which Buyer is entitled to hereunder and which are received by Sellers or
any of their Affiliates. 
 13.6 Survival. Notwithstanding anything in this Agreement to the contrary, the provisions of this Article
XIII shall survive through the expiration of the applicable statute of limitations as the same may be extended. 
 ARTICLE XIV

 EMPLOYEE MATTERS 
 14.1 Union Contract; Initial Employment of Transferred Employees. 
 (a) From the date of this Agreement until
the Closing, Buyer, with the co-operation of Koppers, shall engage in discussions and negotiations with the Union as are necessary to enable Buyer to satisfy the condition to closing set forth in Section 8.4 of this Agreement. 
 (b) Buyer shall (or shall cause the Partnership or another subsidiary of Buyer to) offer continued employment on and after the Closing to
all Employees (including Employees who are on approved leaves of absence on the Closing Date, such as short-term disability or sick leave, military leave, workers’ compensation leave or FMLA leave), other than Employees who are absent from
employment due to long-term disability entitling such Employees to long-term disability benefits under an applicable Koppers Benefit Plan. An offer of “continued employment” for Union Employees shall mean an offer of continued employment
under the terms and conditions set forth in the Union Contract or the New Union Contract, as applicable, and for Non –Union Employees shall mean an offer of continued employment on terms that, in the aggregate, are comparable to the terms of
employment applicable to the Employee on the day prior to the Closing Date. Employees who are offered continued employment with Buyer and who accept such offer and actually commence employment with Buyer on or after the Closing Date are hereinafter
referred to as “Transferred Employees.” Without limiting the foregoing, Buyer shall provide Non-Union Employees who become Transferred Employees, for a minimum of twelve (12) months following the Closing Date, base salary,
incentive compensation; and health, welfare and retirement benefit opportunities which, in the aggregate, are reasonably similar to those provided to such Employees immediately prior to the transfer. 
 14.2 Employee Benefits. 
 (a) Benefits provided or accruing with respect to Transferred Employees under Koppers Benefit Plans shall cease on the Closing Date. 
  

 43 

 (b) Effective immediately following the Closing, the Transferred Employees shall be
eligible to participate in Buyer’s Retirement Plan and in each Buyer welfare and/or fringe benefit plan, fund, program and/or arrangement, including severance, stock option and incentive compensation plans, being provided to similarly situated
employees of Buyer (collectively, the “Buyer Benefit Plans”) in accordance with their terms and, for purposes of eligibility for participation and vesting within Buyer Benefit Plans, Transferred Employees shall receive credit for
their service with Koppers to the same extent such service was recognized under the corresponding Koppers’ Benefit Plans. For purposes of any Buyer Benefit Plan which is a employee welfare benefit plan, a Transferred Employee (and his or her
dependents, if applicable) shall be immediately eligible to participate as of the Closing Date without regard to any otherwise applicable waiting period and without any exclusion from coverage for any preexisting condition, to the extent such
employee and his or her dependents satisfied, immediately prior to the Closing Date, the applicable waiting periods and exclusions from coverage for preexisting conditionsin the comparable Koppers’ Benefit Plan in which such Transferred
Employee and his or her dependents participated immediately prior to the Closing Date. Transferred Employees shall receive credit under Buyer Benefit Plans for any deductibles, copayments or other out-of-pocket expenses paid by the Transferred
Employees for the current plan year. 
 (c) On and after the Closing Date, Transferred Employees shall be entitled to receive
those benefits, if any, from Koppers’ Benefit Plans which are provided to similarly situated terminated employees in accordance with the terms of such plans. Buyer shall permit Transferred Employees to make direct rollovers of their account
balances (including any outstanding participant loans) under the Employee Savings Plan of Koppers Inc. and Subsidiaries and the Koppers Inc. Savings Plan for Union Hourly Employees to the comparable plan, if any, included in Buyer Benefit Plans,
subject to the Transferred Employee’s execution and delivery of such documents as are reasonably and customarily required by the administrator of such Buyer’s plan. 
 14.3 COBRA, Disability and Workers Compensation Liabilities. Koppers shall be responsible for (i) claims for workers compensation or for the
type of benefits described in Section 3(1) of ERISA (whether or not covered by ERISA) that are incurred on or prior to the Closing Date by Transferred Employees (provided, that Buyer shall cooperate with Koppers in making available to
Transferred Employees on workers’ compensation leave on the Closing Date light duty positions or opportunities in order to facilitate their return to work with the Buyer), and (ii) claims relating to continuation coverage required under
Section 4980 of the Code, Part 6 of Title I of ERISA or applicable state law (“COBRA”) attributable to “qualifying events” occurring on or prior to the Closing Date with respect to any individual, including
Transferred Employees and their beneficiaries and dependents. Buyer shall be responsible for (i) disability benefits and workers compensation benefits for Transferred Employees for claims incurred after the Closing Date, and (ii) claims
relating to COBRA coverage attributable to “qualifying events” occurring after the Closing Date with respect to Transferred Employees and their beneficiaries and dependents. For purposes of the foregoing, a medical/dental claim shall be
considered incurred when the medical services are rendered or medical supplies are provided, and not when the condition arose; provided that claims relating to a hospital confinement that commences on or prior to the Closing Date but continues
thereafter shall be treated as incurred on or prior to the Closing Date. A disability shall be considered incurred on or prior to the Closing Date if the injury or condition giving rise to the claim occurs on or prior to the Closing Date. A
workers’ compensation claim shall be considered incurred on or prior to the Closing Date if the compensable injury occurred, and the individual ceased being able to work as a result of such injury, on or prior to the Closing Date. 

 

 44 

 14.4 Assumption of Benefit Liability. Except as expressly assumed by Buyer under this Agreement,
Koppers shall retain any and all liability for, and Koppers acknowledges that Buyer shall have no obligation or responsibility for any, liabilities or obligations arising with respect to any Employee’s employment with Koppers. Buyer and its
Affiliates shall assume and become responsible for the liabilities and other obligations with respect to the Transferred Employees solely with respect to (a) the participation in or accrual of benefits or compensation under the Retirement Plan,
subject to the transfer to Buyer and its Affiliates by Koppers, the Koppers trustee and/or the Retirement Plan, as applicable, of all amounts required pursuant to Section 14.5, the obligation to pay retiree medical and/or retiree life benefits
to the Transferred Employees, to the extent applicable, and the obligation to pay retirement bonuses to Union Employees who become Transferred Employees and who retire after the Closing Date under the Union Contract or the New Union Contract (as
applicable), (b) accrued but unpaid or unfunded salaries, wages, bonuses, incentive compensation, vacation or sick pay, other compensation or payroll items (including, without limitation, deferred compensation), and (c) any liabilities or
obligations arising with respect to the Transferred Employees’ employment with Buyer. 
 14.5 Retirement Plan Matters.

 (a) Prior to the Closing Date, Buyer shall establish a new defined benefit plan which mirrors the terms of the Retirement
Plan (or amend an existing plan to include provisions that mirror the terms of the Retirement Plan) for the benefit of the Transferred Employees) (the “Buyer Retirement Plan”) and a trust account to hold assets related to the Buyer
Retirement Plan that meets applicable ERISA requirements (the “Buyer Plan Trust”). Effective as soon as administratively practicable following the Closing, Koppers shall cause the trustee of the Retirement Plan to transfer to the
Buyer Plan Trust an amount of cash equal to 70% of the estimated value of the assets of the Retirement Plan that are transferrable in connection with the estimated liability of the Retirement Plan with respect to the Transferred Employees, as
determined by the Retirement Plan’s actuary (the “Initial Transferred Plan Assets”); provided, however, that such transfer shall be contingent upon Buyer providing Koppers with a copy of the plan’s most recent favorable
determination letter relating to the Buyer Retirement Plan and the Buyer Plan Trust, and contingent upon Koppers providing Buyer with a copy of the plan’s most recent favorable determination letter relating to the Retirement Plan and the trust
associated with the Retirement Plan. 
 (b) Following the Closing, Koppers shall cause the Retirement Plan’s actuary (the
“Koppers Actuary”) to (i) determine in accordance with Code Section 414(l) and ERISA Section 4044 the actual value of the liability of the Retirement Plan with respect to the Transferred Employees as of Closing Date
(the “Assumed Retirement Liabilities”) and the value of the assets of the Retirement Plan allocable to the Assumed Retirement Liabilities (the “Asset Transfer Amount”) and (ii) provide a certification of its
determination to Koppers and Buyer within 60 business days following the Closing. Buyer may submit, at Buyer’s cost and expense, the determination of Koppers Actuary to an actuary appointed by the Buyer (the 

  

 45 

 
“Buyer Actuary”) for verification. Koppers shall cause Koppers Actuary to promptly provide to the Buyer Actuary information requested by
Buyer Actuary and used in making the determination certified by Koppers Actuary. In the event that the Buyer Actuary determines that the Asset Transfer Amount differs from the amount determined by Koppers Actuary, Koppers and Buyer shall cause
Koppers Actuary and Buyer Actuary to cooperate in good faith to reconcile any difference. If Koppers Actuary and Buyer Actuary fail to reconcile such difference within 90 business days following the Closing and (A) the Buyer Actuary’s
calculation of the Revised Retirement Plan Transfer Amount is within two percent (2%) of the Koppers Actuary’s calculation, the average of the amount calculated by the Koppers’ Actuary and the amount calculated by the Buyer Actuary
shall be used; or (B) the difference between the Buyer Actuary’s calculation and the Koppers Actuary’s calculation of the Revised Retirement Plan Transfer Amount exceeds two percent (2%), the Koppers Actuary and the Buyer Actuary
shall jointly designate a third, independent actuary whose calculation of the value, as of the Closing Date, of the Asset Transfer Amount shall be final and binding in the absence of fraud or manifest error. The fees and expenses incurred in
connection with the retention of such independent actuary shall be allocated between Koppers and the Buyer such that the amount of the fees and expenses paid by Buyer bears the same proportion to the total amount of fees and expenses that the
aggregate dollar amount unsuccessfully disputed by Buyer bears to the total dollar amount of the disputed items that were submitted for resolution where such total amount of disputed items is equal to the difference between the Asset Transfer Amount
as estimated by Buyer’s Actuary and the Asset Transfer Amount as determined by Koppers Actuary, and Koppers shall pay the balance. The final, verified value, as of the Closing Date, of the assets as determined in accordance with this
Section 14.5(b) shall be referred to herein as the “Final Asset Transfer Amount.” 
 (c) Within 5
business days after the Final Asset Transfer Amount is determined, Koppers shall cause its trustee to transfer to the Buyer Plan Trust the difference (if any) in cash between the Final Asset Transfer Amount and the Initial Transferred Plan Assets
plus the sum of (i) the difference between the Final Asset Transfer Amount and the Initial Transferred Plan Assets multiplied by the time-weighted rate of return (positive or negative), net of expenses, on the assets in the Retirement Plan from
the Closing Date and ending on the last day of the month immediately preceding the date of transfer under this Section 14.5(c) and (ii) interest on such difference for the month during which the date of transfer occurs, at the Agreed Rate
(the amount so adjusted, the “True-Up Amount”). Buyer and Koppers agree that the transfer of assets and liabilities hereunder shall comply with Sections 401(a)(12), 414(l), and 411(d)(6) of the Code and the underlying regulations.
If the sum of the Final Asset Transfer Amount and the True-Up Amount as modified to reflect any adjustment pursuant to the immediately preceding sentence is less than the Initial Transferred Plan Assets, then Buyer shall cause the trustee of the
Buyer Plan Trust to transfer the difference to the trustee of the Retirement Plan in cash within 5 days after the Final Asset Transfer Amount is determined. In the event the amount to be transferred to the Buyer Plan Trust or the trust for the
Retirement Plan (as applicable) is limited by the trustee of the transferring plan or otherwise, Koppers or Buyer (as applicable) shall pay in cash the excess of the amount required to be transferred under this Section 14.5 over the amount
actually transferred by the applicable trustee. 
  

 46 

 14.6 Retiree Medical. Following the Closing Date, Buyer shall permit each Transferred Employee to
participate in the Buyer’s retiree medical plan to the extent such Transferred Employee participated in the Retiree Medical Plan prior to the Closing Date. Buyer shall maintain such comparable benefits for a minimum of twelve (12) months
following the Closing Date. 
 14.7 Retiree Life. Following the Closing Date, Buyer shall provide retiree life insurance benefits on
the terms required by the Union Contract or the New Union Contract for the benefit of Transferred Employees who are Union Employees, and shall permit each Transferred Employee who is a Non-Union Employee to participate in Buyer’s retiree life
insurance plan to the extent such Transferred Employee participated in the Retiree Life Plan prior to the Closing Date. Buyer shall maintain such comparable benefits for a minimum of twelve (12) months following the Closing Date. 
 14.8 Modification and Amendment. Nothing herein is intended to amend or modify any Employee Benefit Plan sponsored by Koppers or the Buyer or
prevent Koppers or the Buyer from amending, modifying or terminating any Employee Benefit Plan at any time provided that this Section 14.8 does not affect Buyer’s obligation to provide comparable benefits to the extent set forth in Article
XIV. In addition, nothing herein shall limit the right of Buyer or any of its subsidiaries to terminate the employment of any Transferred Employee. 
 ARTICLE XV 
 PUBLICITY/CONFIDENTIALITY 
 15.1 Publicity and Reports. Koppers and Buyer shall coordinate all publicity relating to the transactions contemplated by this Agreement, and neither party shall issue any press release, publicity statement or
other public notice relating to the transfer of the Business, the identity of Buyer or the Purchase Price (or any component thereof) hereunder without consulting with the other party, except that neither party shall be precluded from making such
filings or giving such notices as may be required by Law or the rules of any stock exchange. 
 15.2 Confidentiality. All information
disclosed by either party or its representatives, whether before or after the date hereof, in connection with the transactions contemplated by, or the discussions and negotiations preceding this Agreement to the other party or its representatives
shall be kept confidential by any such other Person and shall not be used by any such Persons other than as contemplated by this Agreement, except to the extent that such information (a) was known by the recipient when received, (b) is or
hereafter becomes obtainable from other sources other than by breach of Law or any Contract, (c) is necessary or appropriate to disclose to a Governmental Entity having jurisdiction over the parties, (d) is otherwise required to be
disclosed by Law or (e) is otherwise disclosed after confidentiality is waived in writing by the other party. If this Agreement is terminated in accordance with its terms, each party shall return all documents and reproductions thereof received
by it or its representatives from the other parties and, in the case of reproductions, all such reproductions made by the receiving party that include information not within the exceptions contained in the first sentence of this Section 15.2,
unless the recipients provide assurances satisfactory to the requesting party that such documents have been destroyed. 
  

 47 

 ARTICLE XVI 
 GENERAL 
 16.1 Amendments; Waivers. This Agreement and any schedule or exhibit attached hereto
may be amended only by agreement in writing by Sellers, on one hand, and Buyer, on the other hand. No waiver of any provision nor consent to any exception to the terms of this Agreement shall be effective unless in writing and signed by the party to
be bound and then only to the specific purpose, extent and instance so provided. 
 16.2 Exhibits and Schedules; Integration. Each
exhibit and schedule delivered pursuant to the terms of this Agreement shall be in writing and shall constitute a part of this Agreement, although such exhibits and schedules need not be attached to each copy of this Agreement. This Agreement,
together with such exhibits and schedules, constitutes the entire agreement between the parties pertaining to the subject matter hereof and supersedes all prior agreements and understandings of the parties in connection therewith except that the
terms of the Confidentiality Agreement, between Koppers and ArcelorMittal S.A., dated as of April 16, 2008, as supplemented by that certain Addendum to Confidentiality Agreement dated as of July 4, 2008, shall remain in full force and
effect unless and until the Closing shall occur. 
 16.3 Efforts. Each party will use its Commercially Reasonable Efforts to cause all
conditions to its obligations hereunder to be timely satisfied, to the end that the transactions contemplated by this Agreement shall be effected substantially in accordance with its terms as soon as reasonably practicable. 
 16.4 Governing Law. This Agreement, the legal relations between the parties and any Action, whether contractual or non-contractual, instituted by
any party with respect to matters arising under or growing out of or in connection with or in respect of this Agreement shall be governed by and construed in accordance with the Laws of the Commonwealth of Pennsylvania applicable to contracts made
and performed in such state and without regard to conflicts of law doctrines. 
 16.5 No Assignment. Neither this Agreement nor any
rights or obligations under it are assignable or otherwise transferable without the prior written consent of the other parties by operation of law or otherwise. Any attempted assignment in violation of this Section 16.5 shall be void.
Notwithstanding the foregoing, Buyer may assign any of its rights (including the right to purchase the Interests) and obligations to any Affiliate of Buyer without obtaining the Sellers’ consent but no such assignment shall relieve such Buyer
of its obligations hereunder. 
 16.6 Headings. The descriptive headings of the Articles, Sections and subsections of this Agreement
are for convenience only and do not constitute a part of this Agreement. 
 16.7 Counterparts. This Agreement and any amendment hereto
or any other agreement or document delivered pursuant hereto may be executed in one or more counterparts and by different parties in separate counterparts. All of such counterparts shall constitute one and the same agreement or other document and
shall become effective unless otherwise provided therein when one or more counterparts have been signed by each party and delivered to the other party. 
  

 48 

 16.8 Parties in Interest. This Agreement shall be binding upon and inure to the benefit of each
party and its respective successors and assigns, and nothing herein, express or implied, is intended to confer upon any other person any rights or remedies of any nature whatsoever under or by reason of this Agreement. 
 16.9 Notices. Any notice or other communication hereunder must be given in writing and (a) delivered in person, (b) transmitted by
telex, telefax, e-mail or telecommunications mechanism provided that any notice so given is also mailed or sent as provided in clause (c) or (c) mailed by certified or registered mail, postage prepaid, receipt requested or sent by
reputable overnight courier as follows: 
 If to Buyer, addressed to: 
 ArcelorMittal S.A. 
 c/o ArcelorMittal Ltd.

 7th Floor, Berkeley Square House 
 Berkeley Square, London, W1J 6DA 
 Attention: Mr. Sudhir Maheshwari, Group Management Board Member, 
 M&A, Business Development, Corp. Finance and Tax Committee 
 Fax: +44 20 7629 7993 
 With a copy to: 
 Cleary Gottlieb
Steen & Hamilton LLP 
 One Liberty Plaza 
 New York, New York 10006 
 E-mail: jjuantorena@cgsh.com 
 Fax: 212-225-3999 
 Attn: Jorge U. Juantorena

 If to Koppers, addressed to: 
 Koppers Inc. 
 436 Seventh Avenue 
 Pittsburgh, PA 15219 
 E-mail: lacysr@koppers.com 
 Fax: 412-227-2333 
 Attn: Steven R. Lacy, Esq.

 With a copy to: 
 Reed Smith
LLP 
 435 Sixth Avenue 

  

 49 

 
Pittsburgh, Pennsylvania 15219 
 E-mail:
hfrank@reedsmith.com 
 Fax: 412-288-3063 
 Attn: Hannah T. Frank 
 If to CI, addressed to: 
 Carbon Investments, Inc. 
 82 Devonshire Street, R7D 
 Boston, MA 02109 
 E-mail:
Gary.Greenstein@FMR.COM 
 Fax: 617-385-1952 
 With a copy to: 
 Sullivan & Worcester LLP 
 One Post Office Square 
 Boston, MA 02109

 E-mail: ccurtis@sandw.com 
 Fax: 617-338-2880 
 Attn: Christopher C. Curtis 
 or to such other address or to such other person as either party shall have last designated by such notice to the other party. Each such notice or other communication shall be effective, (i) if given by
telecommunication, when transmitted to the applicable number specified in (or pursuant to) this Section 16.9 and an appropriate answerback is received, and (ii) if given by mail or courier or any other means, when actually delivered.

 16.10 Expenses; Transfer Taxes. Except as otherwise provided herein, Sellers and Buyer shall each pay their own expenses incident
to the negotiation, preparation and performance of this Agreement and the transactions contemplated hereby, including, but not limited to, the fees, expenses and disbursements of its attorneys, accountants and other advisers. Buyer, on the one hand,
and Sellers, on the other hand, shall share equally all real and personal property transfer Taxes, if any, and all sales, use and other similar Taxes, if any, imposed on or in connection with the transfers contemplated by this Agreement. 

16.11 Representation by Counsel; Interpretation. Sellers and Buyer each acknowledge that each party to this Agreement has been represented by
counsel in connection with this Agreement and the transactions contemplated by this Agreement. Accordingly, any rule of Law or any legal decision that would require interpretation of any claimed ambiguities herein against the party that drafted it
has no application and is expressly waived. The provisions of this Agreement shall be interpreted in a reasonable manner to effect the intent of the Buyer and Sellers. 
  

 50 

 16.12 Severability. If any provision of this Agreement is determined to be invalid, illegal or
unenforceable by any Governmental Entity, the remaining provisions of this Agreement shall remain in full force and effect provided that the essential terms and conditions of this Agreement for both parties remain valid, binding and enforceable. To
the extent permitted by Law, the parties hereby to the same extent waive any provision of Law that renders any provision hereof prohibited or unenforceable in any respect. 
 16.13 Dispute Resolution; Agreement to Arbitrate 
 (a) The parties will attempt in good faith to resolve any dispute, controversy or claim under, arising out of, relating to or in connection with this Agreement, including, but not limited to, the negotiation,
execution, interpretation, construction, performance, nonperformance, breach, termination, validity, scope, coverage or enforceability of this Agreement or any alleged fraud in connection therewith, promptly by negotiations between executives of the
parties (or its Affiliates) who have authority to settle the controversy, and who are at a higher level of management than the persons with direct responsibility for the administration of this Agreement. If any such dispute, controversy or claim
should arise, such duly authorized representatives of Buyer and Sellers (or their respective Affiliates) will meet at least once and will attempt to resolve the matter. Either representative may request the other to meet again within fourteen days
thereafter, at a mutually agreed time and place. If the matter has not been resolved within thirty days after the first meeting of the representatives (which period may be extended by mutual agreement), the parties will attempt in good faith to
resolve the controversy or claim in accordance with the then current Center for Public Resources Model Procedure for Mediation of Business Disputes and the costs of the mediator associated with such mediation process shall be borne equally by the
Sellers and Buyer. 
 (b) If the matter has not been resolved pursuant to the foregoing procedures within sixty days after the
first meeting (which period may be extended by mutual agreement), the matter shall be settled, at the request of either party, by arbitration conducted in accordance with the provisions of the Federal Arbitration Act and in accordance with the then
current International Institute of Conflict Prevention Non-Administered Arbitration. Each party shall nominate one arbitrator and deliver written notification of such nomination to the other party and to the Center for Public Resources within thirty
days after delivery of the Request for Arbitration. In the event a party fails to nominate an arbitrator or deliver notification of such nomination to the other party and to the Center for Public Resources within this time period, upon request of
either party, such arbitrator shall instead by appointed by the Center for Public Resources within thirty days of receiving such request. The two arbitrators appointed in accordance with the above provisions shall nominate the third arbitrator and
notify the parties and the Center for Public Resources in writing of such nomination within fifteen days of their appointment. If the first two appointed arbitrators fail to nominate a third arbitrator or notify the parties and the Center for Public
Resources of that nomination within this time period, then, upon request of either party, the third arbitrator shall be appointed by the Center for Public Resources within fifteen days of receiving such request. The third arbitrator shall serve as
Chairman of the Tribunal. The arbitration of such issues, including the determination of any amount of damages suffered by any party hereto by reason of the acts or omissions of any party, shall be final and binding upon the parties, except that the
arbitrator shall not be empowered to act as amiable compositeur or authorized to award punitive damages with respect to any such claim, dispute or controversy. No party shall seek any punitive damages relating to any matters under, arising
out of, in connection with or 

  

 51 

 
relating to this Agreement. Equitable remedies shall be available in any such arbitration. The parties intend that this agreement to arbitrate be valid,
binding, enforceable and irrevocable. The substantive and procedural Law of the Commonwealth of Pennsylvania shall apply to any such arbitration proceedings. The place of any such arbitration shall be Philadelphia, Pennsylvania. Judgment upon the
award rendered by the arbitrators may be entered by any court having jurisdiction thereof and the costs of the arbitrator associated with such arbitration proceeding shall be borne equally by Sellers and Buyer. 
 (c) Notwithstanding the provisions of this Section 16.13, either party may seek injunctive or other equitable relief to maintain the
status quo before any court of competent jurisdiction in connection with any claim, dispute or controversy arising out of this Agreement and Buyer may seek injunctive or other equitable relief in connection with any breach or alleged breach of the
provisions of Articles XIII or XIV and Buyer or Sellers, as the case may be, may seek injunctive or other equitable relief in connection with any breach or alleged breach of the provisions of Section 15.2 hereof. 
 16.14 Consent to Jurisdiction. Subject to Section 16.13, each of the parties hereto agree that any suit, action or proceeding instituted
against such party under or in connection with this Agreement shall be brought in the United States District Court for the Western District of Pennsylvania. By its execution hereof, each party hereto irrevocably waives any objection to, and any
right of immunity on the grounds of, improper venue, the convenience of the forum, the personal jurisdiction of such court or the execution of judgments resulting therefrom. Each party hereto hereby irrevocably accepts and submits to the exclusive
jurisdiction of such court in any such action, suit or proceeding. 
 16.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY ANY OF THEM AGAINST THE OTHERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, OR ANY OTHER AGREEMENTS EXECUTED IN CONNECTION HEREWITH OR THE ADMINISTRATION THEREOF OR
ANY OF THE TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN. No party to this Agreement shall seek a jury trial in any lawsuit, proceeding, counterclaim, or any other litigation procedure based upon, or arising out of, this Agreement or any related
instruments or the relationship between the parties. No party will seek to consolidate any such action, in which a jury trial has been waived, with any other action in which a jury trial cannot be or has not been waived. 
 16.16 Further Assurances. Each party shall execute and deliver such further certificates, agreements and other documents and take such other
actions as the other party may reasonably request to consummate or implement the transactions contemplated hereby or to evidence such events or matters. 
  

 52 

 IN WITNESS WHEREOF, Buyer and Sellers have caused this Agreement to be executed by their
duly authorized representatives as of the date first above written. 
  

			
	KOPPERS INC.
		
	By:	 	 
	Name:	 	 
	Title: 	 	 

  

			
	ARCELORMITTAL S.A.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 Signature Page to Purchase Agreement 

 LIMITED JOINDER 
 The undersigned, as an inducement to Koppers to enter into this Agreement and intending to be legally bound, has executed this Limited Joinder solely for the purpose of agreeing to be bound by Article II and Sections
3.3, 6.6, 12.2, 13.1 and 15.2 of this Agreement and making the representations and warranties in Sections 4.2(b), 4.4(b), 4.4(d) and 4.7(b) of this Agreement. 
 IN WITNESS WHEREOF, this Limited Joinder is executed as of the date first above written. 
  

			
	CARBON INVESTMENTS, INC.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 Signature Page to Purchase AgreementStock Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 STOCK PURCHASE AGREEMENT 
 by and among 
 WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION, 
 STANDARD CAR TRUCK COMPANY 
 and 

ROBCLIF, INC. 
 Dated September 12,
2008 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 ARTICLE I
	  	DEFINITIONS	  	1
			
	 ARTICLE II
	  	TRANSACTIONS; PURCHASE PRICE	  	10
			
	 2.1
	  	Sale of Shares and Durox Shares	  	10
			
	 2.2
	  	Purchase Price	  	10
			
	 2.3
	  	Payment of Closing Payment and Escrow Amount	  	11
			
	 2.4
	  	Tax Treatment of Sale of Shares and Durox Shares	  	11
			
	 2.5
	  	Allocation of Purchase Price	  	11
			
	 ARTICLE III
	  	ADJUSTMENTS TO PURCHASE PRICE	  	11
			
	 3.1
	  	Pre-Closing Calculation	  	11
			
	 3.2
	  	Post-Closing Calculation	  	11
			
	 3.3
	  	Dispute Notice	  	12
			
	 3.4
	  	Adjustments	  	12
			
	 3.5
	  	Payment	  	13
			
	 ARTICLE IV
	  	REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	13
			
	 4.1
	  	Corporate Existence	  	13
			
	 4.2
	  	Corporate Authority	  	13
			
	 4.3
	  	Absence of Conflicts	  	14
			
	 4.4
	  	Capitalization	  	14
			
	 4.5
	  	Subsidiaries	  	14
			
	 4.6
	  	Governmental Approvals; Consents	  	14
			
	 4.7
	  	Financial Statements	  	15
			
	 4.8
	  	Absence of Changes	  	15
			
	 4.9
	  	Real Property	  	16
			
	 4.10
	  	Contracts	  	16
			
	 4.11
	  	Litigation; Orders	  	17
			
	 4.12
	  	Intellectual Property Rights	  	18
			
	 4.13
	  	Tax Matters	  	18
			
	 4.14
	  	Labor Matters	  	19
			
	 4.15
	  	Employee Benefit Plans; Employees	  	20
			
	 4.16
	  	Permits; Compliance with Laws	  	21
			
	 4.17
	  	Assets, Inventories and Receivables	  	22
			
	 4.18
	  	Environmental Matters	  	22

  

 - i - 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 4.19
	  	Insurance	  	23
			
	 4.20
	  	Absence of Undisclosed Liabilities	  	23
			
	 4.21
	  	Related Party Transactions	  	23
			
	 4.22
	  	Product Warranties	  	24
			
	 4.23
	  	Product Liability	  	24
			
	 4.24
	  	Finders; Brokers	  	24
			
	 ARTICLE V
	  	REPRESENTATIONS AND WARRANTIES OF SELLER	  	25
			
	 5.1
	  	Corporate Existence	  	25
			
	 5.2
	  	Corporate Authority and Ownership	  	25
			
	 5.3
	  	Absence of Conflicts	  	25
			
	 5.4
	  	Governmental Approvals; Consents	  	25
			
	 ARTICLE VI
	  	REPRESENTATIONS AND WARRANTIES OF THE BUYING PARTIES	  	26
			
	 6.1
	  	Corporate Existence	  	26
			
	 6.2
	  	Corporate Authority	  	26
			
	 6.3
	  	Absence of Conflicts	  	26
			
	 6.4
	  	Governmental Approvals; Consents	  	26
			
	 6.5
	  	Finders; Brokers	  	27
			
	 6.6
	  	Purchase for Investment	  	27
			
	 6.7
	  	Financing	  	27
			
	 6.8
	  	Litigation	  	27
			
	 6.9
	  	Independent Investigation	  	27
			
	 ARTICLE VII
	  	AGREEMENTS OF ALL PARTIES	  	28
			
	 7.1
	  	Operation of the Business	  	28
			
	 7.2
	  	Mutual Cooperation; No Inconsistent Action	  	29
			
	 7.3
	  	Public Disclosures	  	31
			
	 7.4
	  	Access to Records and Personnel	  	31
			
	 7.5
	  	Employee Relations and Benefits	  	33
			
	 7.6
	  	Update to Disclosure	  	34
			
	 7.7
	  	Director and Officer Indemnification.	  	35
			
	 7.8
	  	Tax Matters	  	36
			
	 7.9
	  	No Negotiation	  	38

  

 - ii - 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 7.10
	  	Divestiture	  	38
			
	 ARTICLE VIII
	  	CONDITIONS	  	39
			
	 8.1
	  	Conditions to the Obligations of the Buying Parties	  	39
			
	 8.2
	  	Conditions to the Obligations of Seller	  	39
			
	 8.3
	  	Conditions to Obligations of Buying Parties and Seller	  	40
			
	 8.4
	  	Frustration of Closing Conditions	  	40
			
	 ARTICLE IX
	  	CLOSING	  	40
			
	 9.1
	  	Closing Date	  	40
			
	 9.2
	  	The Buying Parties’ Deliveries to Seller	  	41
			
	 9.3
	  	The Buying Parties’ Delivery to Escrow Agent	  	41
			
	 9.4
	  	Seller’s Deliveries	  	41
			
	 ARTICLE X
	  	INDEMNIFICATION	  	42
			
	 10.1
	  	Agreement to Indemnify	  	42
			
	 10.2
	  	Survival of Representations and Warranties	  	44
			
	 10.3
	  	Notice of Claims for Indemnification	  	45
			
	 10.4
	  	Defense of Claims	  	45
			
	 10.5
	  	Settlement or Compromise	  	46
			
	 10.6
	  	Subrogation and Mitigation	  	46
			
	 10.7
	  	Environmental Actions	  	46
			
	 10.8
	  	Indemnification Calculations	  	48
			
	 10.9
	  	Tax Treatment	  	48
			
	 10.10
	  	Escrow Amount	  	48
			
	 10.11
	  	Asbestos Losses, Designated Losses and Designated Environmental Losses	  	50
			
	 10.12
	  	Exclusive Remedy	  	51
			
	 ARTICLE XI
	  	TERMINATION	  	51
			
	 11.1
	  	Termination Events	  	51
			
	 11.2
	  	Effect of Termination	  	52
			
	 ARTICLE XII
	  	GUARANTEE	  	52
			
	 12.1
	  	Buyer Guarantee	  	52
			
	 12.2
	  	Joint and Several Obligations	  	53
			
	 ARTICLE XIII
	  	MISCELLANEOUS AGREEMENTS OF THE PARTIES	  	53

  

 - iii - 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page
	 13.1
	  	Notices	  	53
			
	 13.2
	  	Transfer Taxes	  	54
			
	 13.3
	  	Expenses	  	54
			
	 13.4
	  	Non-Assignability	  	54
			
	 13.5
	  	Amendment; Waiver	  	54
			
	 13.6
	  	Third Parties	  	55
			
	 13.7
	  	Currency	  	55
			
	 13.8
	  	Governing Law; Submission to Jurisdiction; Waivers	  	55
			
	 13.9
	  	Specific Performance	  	55
			
	 13.10
	  	Entire Agreement	  	56
			
	 13.11
	  	Interpretation and Rules of Construction	  	56
			
	 13.12
	  	Severability	  	56
			
	 13.13
	  	Disclosure Letter	  	57
			
	 13.14
	  	Language	  	57
			
	 13.15
	  	Counterparts	  	57

  

 - iv - 

 STOCK PURCHASE AGREEMENT 
 This STOCK PURCHASE AGREEMENT, dated this 12th day of September, 2008, is by and among Westinghouse Air Brake Technologies Corporation, a Delaware corporation (“Buyer”), Standard Car Truck
Company, a Delaware corporation (the “Company”), and Robclif, Inc., a Delaware corporation (“Seller”). Buyer, the Company and Seller may be referred to in this Agreement individually as a
“Party” or collectively as “Parties.” Capitalized terms used herein shall have the meanings set forth in Article I unless otherwise defined herein. 
 WHEREAS, the Company owns 100% of the Durox Shares and the Company desires to sell to RFPC Holding Corp., a Delaware corporation and Subsidiary of Buyer
(“RFPC”), and RFPC desires to purchase from the Company, all, but not less than all, of the Durox Shares upon the terms and subject to the conditions set forth in this Agreement. As a result of the transactions contemplated
hereby, RFPC will acquire all of the Durox Shares, and Seller, as the parent of the Company, will receive the consideration described in Article II of this Agreement; and 
 WHEREAS, Seller owns 100% of the Shares and Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, all, but not less than all, of
the Shares upon the terms and subject to the conditions set forth in this Agreement. As a result of the transactions contemplated hereby, Buyer will acquire all of the Shares, and Seller will receive the consideration described in Article II
of this Agreement. 
 NOW, THEREFORE, in consideration of the premises, promises and covenants set forth herein, and intending to be legally
bound hereby, the Parties agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Defined terms used in this Agreement shall have the meanings set forth below: 
 “Affiliate” means, with respect to any Person, any other Person that controls, is controlled by, or is under common control with
such Person. The term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, by ownership of securities, contract, credit arrangement or otherwise.

 “Agreement” means this Stock Purchase Agreement, including all Exhibits, Schedules, the Disclosure Letter and the
Buyer Disclosure Letter, as each may be amended, modified or supplemented from time to time in accordance with its terms or this Agreement. 
 “Allocation” has the meaning set forth in Section 2.4. 
 “Anchor
Obligations” has the meaning set forth in Section 7.10. 
 “Ancillary Agreements” has the
meaning set forth in Section 13.13. 
 “Antitrust Laws” means the Sherman Act, the Clayton Act, the HSR Act,
the Federal Trade Commission Act and all other applicable Laws issued by any Governmental Authority that are designed or intended to prohibit, restrict or regulate actions having the purpose or effect of monopolization or restraint of trade or
lessening of competition through merger or acquisition. 
  

 - 1 - 

 “Asbestos Claims” means (a) any claims against the Company or any SCT
Subsidiary arising out of or relating to the use, sale, distribution or handling of asbestos or any asbestos containing product prior to the Closing Date by the Company, any SCT Subsidiary, any of their Affiliates or any of their predecessors or
successors (including products liability claims or premises liability claims) and (b) any claims described on Exhibit I. 
 “Asbestos Loss” means cash paid by the Company, any SCT Subsidiary or Buying Parties to an unaffiliated third party of Buying Parties with respect to an Asbestos Claim and the reasonable out-of-pocket costs, fees and
expenses incurred in defending such Asbestos Claim. 
 “Asbestos Protocol” means the Company’s and the SCT
Subsidiaries’ historical practice, as of the Closing Date, of managing, communicating and reporting the Asbestos Claims as set forth on Exhibit F. 
 “Benefit Plans” means all material employee benefit plans (as defined in Section 3.3 of ERISA), pension, retirement savings, stock purchase, stock option, welfare, severance, employment,
change-in-control, vacation, fringe benefit, collective bargaining, bonus, incentive and deferred compensation plans and agreements maintained on or before the Closing Date by the Company or any of the SCT Subsidiaries or to which on or before the
Closing Date the Company or any of the SCT Subsidiaries contributes or is a party or is bound or under which it may have liability. 
 “Books and Records” has the meaning set forth in Section 7.4(b). 
 “Brake Shoe
Business” means the business conducted by Anchor Brake Shoe Company, including the sintered brake shoe business. 
 “Business” means the business of designing, manufacturing, distributing, marketing and selling railway-related components, parts and products to the railroad freight car and locomotive markets as conducted by the
Company and the SCT Subsidiaries on the date hereof, other than the Brake Shoe Business. 
 “Business Day” means any
day, excluding Saturday, Sunday and any other day on which commercial banks in Chicago, Illinois are authorized or required by Law to close. 
 “Buyer” has the meaning set forth in the introductory paragraph of this Agreement. 
 “Buyer
Disclosure Letter” means the letter delivered by the Buying Parties to Seller in a letter executed by the Buying Parties dated the date hereof. 
 “Buyer Indemnitees” has the meaning set forth in Section 10.1(a). 
 “Buyer Material Adverse Effect” means a material adverse effect on the ability of any of the Buying Parties to consummate the Transactions and perform all of their obligations hereunder. 
  

 - 2 - 

 “Buying Parties” means the Buyer, RFPC and the Designated Buyer, if any.

 “Cash” means all cash and cash equivalents of the Company and SCT Subsidiaries. 
 “Clayton Act” means the Clayton Act of 1914, as amended, and the rules and regulations promulgated thereunder, and any successor
to such statute, rules or regulations. 
 “Closing” has the meaning set forth in Section 9.1. 
 “Closing Date” has the meaning set forth in Section 9.1. 
 “Closing Payment” means $300,000,000 less (i) the Preliminary Net Funded Debt, (ii) the Preliminary Customer Deposits
and (iii) the Escrow Amount. 
 “Code” means the Internal Revenue Code of 1986, as amended, and the rules and
regulations promulgated thereunder, and any successor to such statute, rules or regulations. 
 “Company” has the
meaning set forth in the introductory paragraph of this Agreement. 
 “Company Intellectual Property” has the meaning
set forth in Section 4.12(a). 
 “Company’s Auditors” means Grant Thornton LLP. 
 “Confidentiality Letter” means the letter agreement dated April 4, 2008 between the Company and Buyer. 
 “Contract” means any contract or other legally binding agreement, whether written or oral. 
 “Customer Deposits” means the cash deposit by Companhia Vale Do Rio Doce. 
 “Deemed Asset Sale” has the meaning set forth in Section 2.4. 
 “Designated Buyer” shall be a 100% wholly-owned Subsidiary of Buyer designated by Buyer to purchase the Shares by Buyer providing
prior written notice to Seller at least ten (10) Business Days prior to the Closing Date. 
 “Designated Claims”
means the claims specifically described on Exhibit D attached hereto. 
 “Disclosed Contracts” has the meaning
set forth in Section 4.10(a). 
 “Designated Environmental Conditions” means the conditions specifically
described on Exhibit E attached hereto. 
 “Designated Environmental Conditions Protocol” means the
Company’s and the SCT Subsidiaries’ historical practice, as of the Closing Date, of managing communicating and reporting the Designated Environmental Conditions as set forth on Exhibit G. 
  

 - 3 - 

 “Designated Environmental Losses” means cash paid by the Buying Parties after the
Closing Date as a result of any Third Party Claim with respect to any Designated Environmental Conditions. 
 “Designated
Losses” means cash paid by the Company, any SCT Subsidiary or Buying Parties to an unaffiliated third party of Buying Parties with respect to a Designated Claim and the reasonable out-of-pocket costs, fees and expenses incurred in
defending such Designated Claim. 
 “Disclosure Letter” means the letter delivered by Seller to the Buying Parties
dated the date hereof. 
 “Dispute Notice” has the meaning set forth in Section 3.3. 
 “Divestiture” means the sale of Anchor Brake Shoe Company and the Brake Shoe Business. 
 “Divestiture Adjustment” means the adjustment to the Purchase Price, if any, as set forth on Exhibit C attached hereto.

 “Durox” means Durox Company, an Ohio corporation and a wholly-owned Subsidiary of the Company. 
 “Durox Shares” means all of the issued and outstanding shares of capital stock of Durox. 
 “Employees” has the meaning set forth in Section 4.15(a) 
 “Environmental Law” means all federal, state and local statutes and regulations having the force of law and as in force on the
date of this Agreement and concerning pollution or protection of the environment, including all those relating to the presence, use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing,
processing, discharge, release, threatened release, control, investigation, remediation, remedial action, or cleanup of any Hazardous Substances. 
 “Environmental Work” has the meaning set forth in Section 10.7(b). 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated thereunder, and any successor to such statute, rules or regulations. 
 “Escrow Agent” means Manufacturers and Traders Trust Company, a New York commercial bank with trust powers. 
 “Escrow Agreement” means the Escrow Agreement in the form attached hereto as Attachment I. 
 “Escrow Amount” means an amount equal to Twenty-Five Million Dollars ($25,000,000). 
  

 - 4 - 

 “Escrow Fund” has the meaning set forth in Section 10.10(a).

 “Exchange Rate” means the applicable exchange rate for converting the relevant foreign currency into U.S. currency
that was used to calculate the Preliminary Working Capital. 
 “Executive Incentive Plan” means the Standard Car
Truck Company and Affiliates Executive Incentive Compensation Plan, as amended and restated effective as of January 1, 2005. 
 “Federal Trade Commission Act” means the Federal Trade Commission Act of 1914, as amended, and the rules and regulations promulgated thereunder, and any successor to such statute, rules or regulations. 
 “Final Closing Balance Sheet” has the meaning set forth in Section 3.2. 
 “Final Distribution Date” has the meaning set forth in Section 10.10(b)(iii). 
 “Financial Statements” has the meaning set forth in Section 4.7(a). 
 “First Distribution Date” has the meaning set forth in Section 10.10(b)(i). 
 “Funded Debt” means all interest rate swap agreements and debt for borrowed money of the Company and the SCT Subsidiaries owed to
any bank or other financial institution as of the Closing Date, excluding trade accounts payable of the Company and the SCT Subsidiaries. 
 “GAAP” means United States generally accepted accounting principles. 
 “Governmental
Authority” means any foreign, federal, state, provincial or local governmental or regulatory commission, board, bureau, agency, court or regulatory or administrative body. 
 “Hazardous Substances” means any chemical, material or substance whether solid, liquid or gaseous, designated as a hazardous
waste, hazardous substance, hazardous material, pollutant, contaminant or toxic substance by any applicable Environmental Law, including any petroleum, petroleum products or other hydrocarbon products, by-products, derivatives, additives or
fractions (including used or spent products), asbestos or asbestos containing materials, polychlorinated biphenyls, or radioactive materials. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder, and any successor to such statute, rules or regulations. 
 “Indemnifying Party” has the meaning set forth in Section 10.3. 
 “Indemnitees” has the meaning set forth in Section 10.1(c). 
 “Independent Auditor” has the meaning set forth in Section 3.3. 
  

 - 5 - 

 “Intellectual Property” means any of the following intellectual property:
(a) patents and patent applications, (b) trademarks, service marks, trade names, trade dress and domain names, together with the goodwill associated exclusively therewith, (c) copyrights, including copyrights in computer software,
(d) confidential and proprietary information, including Trade Secrets and (e) registrations and applications for registration of the foregoing. 
 “Interim Loss” means cash paid at any time by or on behalf of any Buyer Indemnitee to an unaffiliated third party of any Buyer Indemnitee and the reasonable out-of-pocket costs, fees and
expenses incurred in defending any related Third Party Claim. 
 “Knowledge”, when used to qualify any representation
or warranty, means that such Party has no actual knowledge after reasonable inquiry that such representation or warranty is not true and correct to the same extent as provided in the applicable representation or warranty. For the purpose of this
definition, the “actual knowledge” of the Company shall mean the actual present awareness, upon reasonable inquiry, of Rick Mathes, Dan Schroeder, Mark Pace, David Watson and Mickey Korzeniowski and the “actual knowledge” of a
Buying Party for purposes of Article VI and Section 7.2(e) shall mean the actual present awareness, upon reasonable inquiry, of Mark Cox, David M. Seitz and Pat Dugan. 
 “Law” means any foreign, federal, state or local law, statute, ordinance, regulation, rule, constitution, code, order or treaty
of any Governmental Authority. 
 “Lease” has the meaning set forth in Section 4.9(b). 
 “Leased Real Property” has the meaning set forth in Section 4.9(b). 
 “Liens” mean all liens, charges, security interests, pledges, mortgages or other material encumbrances (other than restrictions
on transfer generally arising under the Securities Act or other applicable securities Laws). 
 “Loss” means any
liability, expense (including reasonable attorney’s fees), loss, damage, or obligation, including Asbestos Losses, Interim Losses, Designated Environmental Losses and Designated Losses. 
 “Management” means the members of management of the Company who are entitled to receive payments under the Management Incentive
Program. 
 “Management Escrow Amount” means that portion of the Escrow Amount to be contributed by Management, which
amount will be provided to Buyer three (3) days prior to the Closing. 
 “Management Incentive Compensation
Program” means the Standard Car Truck Company Senior Management Incentive Compensation Program dated October 24, 2006. 
 “Management Incentive Payment” means the aggregate amount to be paid to Management pursuant to the Management Incentive Compensation Program less the Management Escrow Amount. 
  

 - 6 - 

 “Material Adverse Effect” means a material adverse effect on (a) the results
of operations or financial condition of the Company and the SCT Subsidiaries taken as a whole, after taking into effect any insurance recoveries; provided, however, that none of the following shall be deemed in and of themselves,
either alone or in combination, to constitute, and none of the following shall be taken into account in determining whether there has been or will be, a Material Adverse Effect: (i) any failure by the Company and the SCT Subsidiaries to meet
internal projections or forecasts or revenue or earnings predictions for any period ending (or for which revenues or earnings are released) on or after the date of this Agreement, (ii) changes, effects, events, occurrences or circumstances that
generally affect the United States or the global economy or the securities, financial capital or credit markets in the United States or elsewhere or the industries in which the Company and the SCT Subsidiaries operate, (iii) general economic,
financial or securities market conditions in the United States or elsewhere, (iv) the execution, delivery or announcement of this Agreement or the announcement or pendency of the Transactions (including any cancellations of or delays in
customer orders, any reductions in sales, any disruption in supplier, distributor, partner or similar relationships or any loss of employees), (v) changes in GAAP or legal requirements applicable to the Company and the SCT Subsidiaries,
(vi) changes in Laws or interpretations thereof by a Governmental Authority, (vii) changes, effects or events caused by or resulting from the taking of any action required by this Agreement or approved by Buyer, (viii) any actions
required to be taken under this Agreement to obtain any approval or authorization under any Antitrust Laws for the consummation of the Transactions, (ix) national or international political or social conditions, including the engagement by the
United States in hostilities, whether or not pursuant to the declaration of a national emergency or war, any outbreak or material escalation of hostilities in which the United States is involved or the occurrence of any military or any terrorist
attack upon the United States, or any of its territories, possessions or diplomatic or consular offices or upon any military installation, equipment or personnel of the United States or directed against United States’ facilities or citizens
wherever located or (x) as described on Exhibit H; or (b) the ability of the Company or Seller to consummate the Transactions. 
 “Maximum Amount” has the meaning set forth in Section 10.1(b)(ii). 
 “Media”
has the meaning set forth in Section 10.7(a). 
 “Minimum Amount” has the meaning set forth in
Section 10.1(b)(i). 
 “Multiple Employer Plan” has the meaning set forth in Section 4.15(a).

 “Net Funded Debt” means the amount equal to the Funded Debt less Cash, in each case as of the Closing Date.

 “Owned Real Property” has the meaning set forth in Section 4.9(a). 
 “Party” or “Parties” has the meaning set forth in the introductory paragraph of this Agreement.

 “Permits” means licenses, permits or franchises issued by any Governmental Authority and other certificates,
authorizations and approvals of any Governmental Authority. 
  

 - 7 - 

 “Permitted Liens” means all (a) Liens set forth on Section 1.1 of
the Disclosure Letter; (b) Liens disclosed in the Financial Statements; (c) Liens for Taxes, assessments and other governmental charges not yet due and payable or, if due, (i) not delinquent or (ii) being contested in good
faith by appropriate proceedings described on Section 4.13(d) of the Disclosure Letter; (d) materialmen’s, mechanics’, workmen’s, repairmen’s, warehousemen’s, carriers’ or other like Liens arising or
incurred in the ordinary course of business; (e) Liens associated with original purchase price conditional sales contracts and equipment leases with third parties entered into in the ordinary course of business; and (f) with respect to any
parcel of the Real Property: (i) easements, licenses, covenants, rights-of-way and other similar restrictions, including any other agreements or restrictions which would be shown by a current title report or other similar report or listing,
(ii) any conditions that may be shown by a current survey or physical inspection of the Real Property and (iii) zoning, building and other similar restrictions, so long as none of (i), (ii) or (iii) prevent the use of such Real
Property substantially as currently used. 
 “Permitted Transactions” has the meaning set forth in Section
7.1. 
 “Person” means any individual, firm, partnership, association, trust, corporation, joint venture,
unincorporated organization, limited liability company, Governmental Authority or other entity. 
 “Post-Signing Supplemental
Information” has the meaning set forth in Section 7.6(a). 
 “Post-Signing Supplemental Information
Losses” has the meaning set forth in Section 7.6(c). 
 “Pre-Signing Supplemental
Information” has the meaning set forth in Section 7.6(a). 
 “Preliminary Closing Balance
Sheet” has the meaning set forth in Section 3.1. 
 “Preliminary Customer Deposits” means
the good faith estimate of Customer Deposits as of the Closing Date as determined in accordance with Article III. 
 “Preliminary Net Funded Debt” means the good faith estimate of the Net Funded Debt as of the Closing Date as determined in accordance with Article III. 
 “Proceeding” means any action, arbitration, litigation, suit or formal investigation (whether civil, criminal, administrative,
judicial or investigative) commenced, brought, conducted or heard by or before any Governmental Authority or arbitrator. 
 “Product” has the meaning set forth in Section 4.23(a). 
 “Proper
Courts” has the meaning set forth in Section 13.8. 
 “Purchase Price” has the meaning set forth
in Section 2.2. 
 “QSub Election” has the meaning set forth in Section 4.13(f). 

“Qualified Claims” has the meaning set forth in Section 10.1(b)(i). 
  

 - 8 - 

 “Real Property” has the meaning set forth in Section 4.9(d).

 “Recalls” has the meaning set forth in Section 4.23(a). 
 “Release” means any spilling, leaking, emitting, discharging, disposing, injecting, depositing, escaping, leaching, dumping, or
other releasing into the environment, whether intentional or unintentional. 
 “Restrictions” means any transfer
restrictions, proxies, voting agreements, agreements to sell or purchase and similar restrictions (other than restrictions on transfer generally arising under the Securities Act or other applicable securities Laws). 
 “RFPC” has the meaning set forth in the recitals of this Agreement. 
 “S Corporation Parent” has the meaning set forth in Section 4.13(f). 
 “S Election” has the meaning set forth in Section 4.13(f). 
 “SCT Subsidiary” or SCT Subsidiaries” means any or all Standard Research and Design Corporation, SanCasT,
Inc., Durox Company, Standard Car Truck-Asia, Inc., Barber Truck International, Inc., Standard Car Truck of Canada, Inc., SCT Europe Ltd., SCT Technology, LLC, Barber Tian Rui Railway Supply, LLC and Barber Brake Beam LLC. 
 “Second Distribution Date” has the meaning set forth in Section 10.10(b)(ii). 
 “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, and any
successor to such statute, rules or regulations. 
 “Seller” has the meaning set forth in the introductory paragraph
of this Agreement. 
 “Seller Indemnitees” has the meaning set forth in Section 10.1(c). 
 “Seller Representative” shall mean H.S. Russell, or such other person as designated, from time to time, by Seller in writing to
Buyer. 
 “Shares” means all of the issued and outstanding shares of capital stock of the Company. 
 “Sherman Act” means the Sherman Act of 1890, as amended, and the rules and regulations promulgated thereunder, and any successor
to such statute, rules or regulations. 
 “Straddle Period” has the meaning set forth in Section 7.8(b).

 “Subsidiary” or “Subsidiaries” of any Person means any corporation, partnership, limited
liability company or other legal entity in which such Person (either alone or through or together with any other Subsidiary), owns, directly or indirectly, 25% or more of the stock or other equity or ownership interests. 
 “Taxes” means any federal, state, provincial, local, territorial and foreign income, profits, franchise, gross receipts, payroll,
sales, employment, use, property, real estate, excise, value added, estimated, stamp, withholding and any other taxes, duties or assessments, together with all interest, penalties and additions imposed with respect to such amounts. 
  

 - 9 - 

 “Tax Returns” means all federal, state, local, provincial and foreign tax
returns, declarations, statements, reports, schedules, forms and information returns and any amended tax return relating to Taxes (as they relate to the Business). 
 “Termination Date” means December 31, 2008; provided, however, that the Parties may, by mutual agreement, extend such date if the Closing has not occurred due to the
condition set forth in Section 8.3(b) not being fulfilled. 
 “Third Party Claim” has the meaning set
forth in Section 10.4. 
 “Trade Secrets” means all secret, proprietary or confidential information of the
Company or any SCT Subsidiary, including any and all information not generally known to, or ascertainable by, Persons not employed by the Company or any SCT Subsidiary, the disclosure or knowledge of which would permit those Persons to derive actual
material economic value therefrom or to cause material economic or material financial harm to the Company or any SCT Subsidiary. 
 “Transactions” means the transactions contemplated by this Agreement. 
 “Working
Capital” has the meaning set forth in Section 3.2. Any amounts which are to be included in any calculation of Working Capital which are expressed in a currency other than U.S. dollars shall be converted into U.S. dollars at
the Exchange Rate. 
 ARTICLE II 
 TRANSACTIONS; PURCHASE PRICE 
 2.1 Sale of Shares and Durox Shares. Subject to the satisfaction or waiver of the conditions
set forth in Article VIII, at the Closing and as of the Closing Date: 
 (a) The Company shall sell, convey, assign and transfer to
RFPC, and RFPC shall purchase, acquire and accept from the Company, all of the Company’s right, title and interest in and to all of the Durox Shares free and clear of any Liens; and 
 (b) Immediately after the transfer of the Durox Shares to RFPC pursuant to Section 2.1(a) above, Seller shall sell, convey, assign and
transfer to Buyer, and Buyer shall purchase, acquire and accept from Seller, all of Seller’s right, title and interest in and to all of the Shares free and clear of any Liens. 
 2.2 Purchase Price. The aggregate purchase price for the Durox Shares and the Shares shall be $300,000,000 less (a) Net Funded Debt and
(b) Customer Deposits, subject to adjustment pursuant to Article III below (the “Purchase Price”); provided, however, that the Purchase Price shall be adjusted by the Divestiture Adjustment, if any.

  

 - 10 - 

 2.3 Payment of Closing Payment and Escrow Amount. At the Closing, Buyer shall (a) pay to
Seller in immediately available U.S. federal funds the Closing Payment and (b) deposit with Escrow Agent in immediately available U.S. federal funds the Escrow Amount pursuant to the Escrow Agreement. 
 2.4 Tax Treatment of Sale of Shares and the Durox Shares. Pursuant to Treasury Regulation Section 1.1361-5(b), the Parties shall treat the
purchase and sale of the Shares and the purchase and sale of the Durox Shares hereunder for U.S. federal income tax purposes (and, where applicable, for state and local income tax purposes), as a sale of the assets of the Company and each of the SCT
Subsidiaries for which a QSub election has been made by Seller to Buyer in exchange for the Purchase Price plus the amount of liabilities as of the Closing Date of the Company and the SCT Subsidiaries for which a QSub election has been made (the
“Deemed Asset Sale”). Any amounts received by Seller for the purchase and sale of the Durox Shares shall be deemed received by the Company and distributed by the Company to Seller immediately prior to the Buyer’s
purchase and sale of the Shares. Consistent with such treatment, Seller will include any income, gain, loss, deduction or other Tax item resulting from the Deemed Asset Sale on its Tax Returns in accordance with applicable Law. 
 2.5 Allocation of Purchase Price. The Purchase Price (as adjusted pursuant to Article III) plus the amount of liabilities as of the
Closing Date of the Company and each of the SCT Subsidiaries for which a QSub election has been made shall be allocated among the assets pursuant to the methodology set forth on the attached Exhibit A (the
“Allocation”). Buyer and Seller shall prepare all relevant Tax Returns in a manner consistent with the Allocation and shall cooperate with each other in the preparation thereof. At least five (5) Business Days prior to
the Closing, the Parties shall submit a mutually acceptable Allocation of the Purchase Price, which Allocation will not be changed without both Parties’ written consent. 
 ARTICLE III 
 ADJUSTMENTS TO PURCHASE PRICE 
 3.1 Pre-Closing Calculation. Three (3) Business Days prior to the Closing Date, the Company shall prepare and deliver to Parent a
consolidated balance sheet of the Company and the SCT Subsidiaries (the “Preliminary Closing Balance Sheet”) setting forth the Preliminary Net Funded Debt and the Preliminary Customer Deposits. The Preliminary Closing Balance
Sheet shall be calculated in accordance with GAAP and the Financial Statements and shall be reasonably acceptable to Buyer. 
 3.2
Post-Closing Calculation. Within seventy-five (75) days following the Closing Date, Buyer shall, at its sole expense, prepare and deliver to Seller a consolidated balance sheet of the Company and the SCT Subsidiaries as of the Closing
Date (the “Final Closing Balance Sheet”) setting forth in reasonable detail the Net Funded Debt, the Customer Deposits and the Working Capital. The Final Closing Balance Sheet shall be prepared in accordance with GAAP and the
Financial Statements. In connection therewith, from and after Closing, the Buying Parties shall provide Seller and its advisors with reasonable access during normal working hours to all Company records and work papers used in preparing the Final
Closing Balance Sheet and necessary to compute the Net Funded Debt, the Customer Deposits and the Working Capital, as 

  

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well as the right to make copies of all such records and work papers. The Buying Parties shall also make available to Seller and its advisors the
Company’s personnel and advisors involved in preparing the foregoing. Without limiting or prejudicing Seller’s rights with respect to access to records, work papers, personnel and advisors as set forth above, the Parties, however, agree
that in the event that there is a dispute with respect to the calculations, the Parties shall not have the right to discovery under the Federal Rules of Procedures. The calculation of the Net Funded Debt, the Customer Deposits and the Working
Capital as delivered to Seller shall be final and binding on the Parties unless, within thirty (30) Business Days after delivery to Seller, Seller shall deliver to Buyer a Dispute Notice. After delivery of a Dispute Notice, Buyer and Seller
shall promptly negotiate in good faith with respect to the subject of the Dispute Notice, and if they are unable to reach an agreement within fifteen (15) Business Days after delivery to Buyer of the Dispute Notice, the dispute shall be
submitted to the Independent Auditor. In the event that Buyer and Seller disagree on the process and procedure relating to the resolution of the dispute, the Independent Auditor shall conclusively resolve such dispute and establish the process and
procedure to be used in connection with its review of the disputed items. The Independent Auditor shall be directed to issue a final and binding decision within thirty (30) days of submission of the Dispute Notice, as to the issues of
disagreement referred to in the Dispute Notice and not resolved by the Parties. The calculation of the Net Funded Debt, the Customer Deposits and the Working Capital, as so adjusted by agreement or by the Independent Auditor (if required), shall be
final and binding on the Parties. “Working Capital” shall mean the amount equal to Seller’s total current assets (excluding Cash) less Seller’s total current liabilities, calculated in accordance with GAAP
consistently applied and applied on a basis consistent with the Financial Statements (including the calculation of the value of inventory on a “last in-first out” basis) as of the Closing Date. A sample calculation of the Working Capital
as of December 31, 2007 is attached hereto as Exhibit B. 
 3.3 Dispute Notice. In connection with the calculations of the
Net Funded Debt, the Customer Deposits and the Working Capital, a “Dispute Notice” shall mean a written notice from Seller indicating disagreement with the calculations of the Net Funded Debt, the Customer Deposits and/or the
Working Capital and summarizing the items in dispute. The “Independent Auditor” shall mean a national public accounting firm with no material relationship to either of the Parties or their respective Affiliates chosen by
agreement of the Parties, or, if they are unable to agree, shall mean a national firm with no such material relationship chosen by lot. The fees and expenses of the Independent Auditor retained as a result of any dispute related to any statement
shall be equitably allocated by the Independent Auditor, based on the accuracy of the Parties’ positions relative to the final determination by the Independent Auditor. 
 3.4 Adjustments. 
 (a) If the Net
Funded Debt as determined pursuant to Section 3.2 is more than the Preliminary Net Funded Debt, then Buyer shall be entitled to recover from the Escrow Fund the amount of the difference within three (3) Business Days following the
determination thereof. If the Net Funded Debt as determined pursuant to Section 3.2 is less than the Preliminary Net Funded Debt, then Buyer shall promptly, but in no event later than three (3) Business Days following the determination
thereof, pay the amount of the difference to Seller. 
  

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 (b) If the Customer Deposits as determined pursuant to Section 3.2 are more than the Preliminary
Customer Deposits, then Buyer shall be entitled to recover from the Escrow Fund the amount of the difference within three (3) Business Days following the determination thereof. If the Customer Deposits as determined pursuant to Section
3.2 are less than the Preliminary Customer Deposits, then Buyer shall promptly, but in no event later than three (3) Business Days following the determination thereof, pay the amount of the difference to Seller. 
 (c) If the Working Capital as determined pursuant to Section 3.2 is less than $40,349,000, then Buyer shall be entitled to recover from the Escrow
Fund the amount of the difference within three (3) Business Days following the determination thereof. If the Working Capital as determined pursuant to Section 3.2 is more than $40,349,000, then Buyer shall promptly, but in no event later
than three (3) Business Days following the determination thereof, pay the amount of the difference to Seller. 
 3.5 Payment. Any
amounts due to Buyer or to Seller under Section 3.4 shall be netted against one another such that only one payment shall be necessary to satisfy the Parties’ obligations under Section 3.4. Amounts due to Seller under
Section 3.4 shall be reduced by any payments required to be paid under the Management Incentive Compensation Program as a result of the adjustments to the Purchase Price set forth herein, such amounts to be paid to Management by the
Company or the Buyer at the same time payment is made to Seller. The Seller Representative shall provide Buyer in writing no later than two (2) Business Days prior to the payment date with the amounts to be paid to each member of Management
along with wire transfer instructions. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
 Except as set forth on the Disclosure Letter, the Company
hereby represents and warrants to Buying Parties that, as of the date of this Agreement: 
 4.1 Corporate Existence. The Company and
each SCT Subsidiary is a corporation or limited liability company validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization and has all necessary corporate power and authority to carry on its
business as now conducted. The Company and each SCT Subsidiary is legally qualified to transact business as a foreign corporation and is in good standing in each jurisdiction where the nature of its properties and the conduct of its business
requires such qualification, except for those jurisdictions where the failure to so qualify or be in good standing would not reasonably be expected to have a Material Adverse Effect. 
 4.2 Corporate Authority. This Agreement and the consummation of the Transactions have been duly authorized by all requisite corporate acts or
proceedings of the Company prior to Closing, and the Company has all necessary corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly executed and delivered by the
Company and, assuming due authorization, execution and delivery hereof by the Buying Parties, constitutes a valid and binding obligation of the Company, enforceable in accordance with its terms. 
  

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 4.3 Absence of Conflicts. Except as set forth on Section 4.3 of the Disclosure Letter,
the execution and delivery of this Agreement by the Company and, subject to the required compliance with Antitrust Laws related to the Transactions, the consummation by the Company of the Transactions will not (a) violate, conflict with or
result in the breach of the certificate of incorporation, bylaws or operating agreement (or similar organizational documents) of the Company or any of the SCT Subsidiaries, (b) conflict with or violate any Law, judgment or decree of any
Governmental Authority applicable to the Company or any of the SCT Subsidiaries or (c) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both, would become a default)
under, require any consent under, or give to others any rights of termination or cancellation, modification or acceleration of, any Disclosed Contract to which the Company or any of the SCT Subsidiaries is a party. 
 4.4 Capitalization. Section 4.4 of the Disclosure Letter sets forth the authorized, issued and outstanding shares of capital stock of
the Company. Seller is the sole record and beneficial owner of, and has good and valid title to, all of the Shares, free and clear of all Liens and Restrictions. The Company is the sole record and beneficial owner of, and has good and valid title
to, all of the Durox Shares, free and clear of all Liens and Restrictions. All of the Shares and the Durox Shares are duly authorized, validly issued, fully paid and nonassessable. There are no outstanding options, warrants, preemptive rights,
agreements or other rights of any kind relating to the sale or issuance of additional shares of capital stock or other securities convertible into, exchangeable for or evidencing the right to purchase, any shares of capital stock or other securities
in the Company. 
 4.5 Subsidiaries. 
 (a) Section 4.5(a) of the Disclosure Letter sets forth for each SCT Subsidiary (i) its name and jurisdiction of formation, (ii) the authorized, issued and outstanding equity ownership interests
of such entity, and (iii) the names of the holders thereof, and the number of ownership interests held by each such holder. 
 (b) Each
holder of the ownership interests of each SCT Subsidiary has good and valid title to, and is the sole record and beneficial owner of, such ownership interests, free and clear of all Liens and Restrictions. 
 (c) All of the equity ownership interests of each SCT Subsidiary are duly authorized, validly issued, fully paid and nonassessable. Except as set forth
on Section 4.5(c) of the Disclosure Letter, there are no outstanding options, warrants, agreements or other rights of any kind relating to the sale or issuance of additional shares of capital stock or other securities convertible into,
exchangeable for or evidencing the right to purchase any shares of capital stock or other securities in any SCT Subsidiary. Except for the ownership of the equity interests in each SCT Subsidiary, neither the Company nor any SCT Subsidiary legally
and beneficially owns any equity interest in any other Person. 
 4.6 Governmental Approvals; Consents. No claim, legal action, suit,
arbitration, governmental investigation or other legal or administrative Proceeding is pending or, to the Knowledge of the Company, threatened in writing against the Company or any SCT Subsidiary which would enjoin or delay the Transactions. Except
as set forth on Section 4.6 of the  

  

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Disclosure Letter and except as required by Antitrust Laws, no consent, approval, order or authorization of, license or permit from, notice to or
registration, declaration or filing with any Governmental Authority, or any third party with respect to a Disclosed Contract, is required on the part of the Company or any SCT Subsidiary in connection with the execution and delivery of this
Agreement or the consummation of the Transactions, except for such consents, approvals, orders or authorizations of, licenses or permits, filings, registrations, declarations or notices which have been obtained or which may be necessary as a result
of any facts relating solely to the Buying Parties or their Affiliates. 
 4.7 Financial Statements. 
 (a) The Company has heretofore delivered to Buyer the following consolidated financial statements of the Company (the “Financial
Statements”), copies of which are attached as Section 4.7(a) of the Disclosure Letter: 
 (i) audited financial
statements of the Company for the fiscal years ended December 31, 2006 and December 31, 2007; 
 (ii) consolidated balance sheet
as of June 30, 2008; 
 (iii) consolidated statement of operations for the six-month period ended June 30, 2008; and 

(iv) consolidated cash flow statement for the six-month period ended June 30, 2008. 
 (b) The Financial Statements have been prepared from the books, records and accounts of the Company and the SCT Subsidiaries in accordance with GAAP
consistently applied during the periods covered thereby (except for the absence of footnotes in the interim period Financial Statements). Each balance sheet included in the Financial Statements fairly presents in all material respects the
consolidated financial position of the Company and the SCT Subsidiaries as of the respective dates thereof, and the consolidated operations and cash flow statements included in the Financial Statements fairly present in all material respects the
results of operations and the cash flows of the Company and the SCT Subsidiaries for the respective periods indicated therein, in accordance with GAAP (except for the absence of footnotes in the interim period Financial Statements). The books of
account, ledgers and other records of the Company and each of the SCT Subsidiaries are complete and correct in all material respects. 
 4.8
Absence of Changes. Except as set forth in Section 4.8 of the Disclosure Letter, since June 30, 2008 to the date hereof: 
 (a) except as contemplated or permitted by this Agreement, the Business has been conducted in all material respects in the ordinary course consistent with past practice; and 
 (b) there has not occurred any change or event that has resulted in, or would reasonably be expected to have, a Material Adverse Effect. 
  

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 4.9 Real Property. 
 (a) Section 4.9(a) of the Disclosure Letter lists all of the real property and interests therein owned by the Company or any of the SCT Subsidiaries (with all easements and other rights appurtenant to such
property, the “Owned Real Property”). The Company or a SCT Subsidiary, as the case may be, holds fee simple title to the applicable parcel of Owned Real Property, free and clear of any Liens, except Permitted Liens.

 (b) Section 4.9(b) of the Disclosure Letter lists all of the real property and interests therein leased or subleased by the
Company or any of the SCT Subsidiaries (the “Leased Real Property”). For each item of Leased Real Property, Section 4.9(b) of the Disclosure Letter lists the lease or sublease, pursuant to which the Company or a
SCT Subsidiary, as the case may be, holds a possessory interest in the Leased Real Property and all material amendments, renewals, or extensions thereto (each, a “Lease”). The leasehold interest of the Company or a SCT
Subsidiary, as the case may be, with respect to each item of Leased Real Property is held free and clear of any Liens, except Permitted Liens. Except as set forth on Section 4.9(b) of the Disclosure Letter, neither the Company nor any of
the SCT Subsidiaries is a sublessor of, and has not assigned any Lease covering, any portion of the Leased Real Property. 
 (c) Each Lease
is valid and binding on the Company or the applicable SCT Subsidiary and, to the Knowledge of the Company, is valid and binding on the other parties thereto. The Company or the applicable SCT Subsidiary that is a party to the Lease and, to the
Knowledge of the Company, the other parties thereto are not in material default or breach under any such Lease, and there are no pending claims affecting the Leases as of which the Company and the SCT Subsidiaries have written notice. 
 (d) The Owned Real Property and the Leased Real Property (collectively, the “Real Property”) constitute all material interests in
real property currently owned or leased by the Company or any of the SCT Subsidiaries in connection with the Business. Neither the Company nor any of the SCT Subsidiaries has received written notice that the location, construction, occupancy,
operation or use of the buildings located on the Real Property violates any restrictive covenant or deed restriction recorded against such Real Property or any other Laws. 
 4.10 Contracts. 
 (a) Except as set
forth on Section 4.10 of the Disclosure Letter, there are no outstanding Contracts to which the Company or any of the SCT Subsidiaries is a party or by which the Company or any of the SCT Subsidiaries is bound that: 
 (i) involve commitments by such Person for terms in excess of three (3) years and involve annual payments or sales of more than $100,000;

 (ii) individually and currently involve annual payments or sales of more than $500,000 in the aggregate by such Person; 
 (iii) consist of obligations for Funded Debt; 
 (iv) involve employment, severance, change in control, or other agreements involving compensation of any employees of such Person for services rendered or to be rendered, other than offer letters to (a) current salaried employees in
the ordinary course of business and (b) hourly employees; 
  

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 (v) involve the retention of any sales representative, marketing representative, agent or consultant to
the Company or to any SCT Subsidiary; 
 (vi) consist of Contracts between the Company or any of the SCT Subsidiaries, on one hand, and
Seller or its Affiliates (other than the Company and the SCT Subsidiaries), on the other hand; 
 (vii) involve any political contribution;

 (viii) by their express terms purport to limit or restrain the Company or any SCT Subsidiary from engaging or competing in any business;

 (ix) involve any license, sublicense or agreement pursuant to which the Company or any SCT Subsidiary has granted rights to a third
Person pertaining to the Company’s or any SCT Subsidiary’s Intellectual Property, which license, sublicense or agreement is material to the Company and the SCT Subsidiaries; 
 (x) involve any license, sublicense or agreement pursuant to which the Company or any SCT Subsidiary has been granted any rights to the Intellectual
Property of any third Person, which grant of rights is material to the Company and the SCT Subsidiaries; 
 (xi) represent a joint venture
or similar arrangement; and 
 (xii) represent a guaranty or suretyship arrangement. 
 Contracts required to be disclosed on Section 4.10 of the Disclosure Letter are hereafter referred to as the “Disclosed Contracts”.

 (b) Each Disclosed Contract is valid and binding on the Company or the applicable SCT Subsidiary and, to the Knowledge of the Company, is
valid and binding on the other parties thereto. The Company or the applicable SCT Subsidiary that is a party to the Disclosed Contract and, to the Knowledge of the Company, the other parties thereto are not in material default or breach under any
such Disclosed Contract, and there are no pending claims affecting the Disclosed Contracts as of which the Company and the SCT Subsidiaries have written notice. 
 4.11 Litigation; Orders. Except as set forth on Section 4.11 of the Disclosure Letter, there is no pending or, to the Knowledge of the Company, threatened in writing legal or administrative
Proceeding, against the Company or any of the SCT Subsidiaries. There is no judgment, order, injunction or decree imposed upon the Company or any of the SCT Subsidiaries by any Governmental Authority. 
  

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 4.12 Intellectual Property Rights. 
 (a) Section 4.12(a) of the Disclosure Letter sets forth an accurate and complete list of all patents and patent applications, registered
trademarks and trademark applications, and registered copyrights and copyright applications which are owned by the Company and the SCT Subsidiaries and are material to the operation of the Business as currently conducted (“Company
Intellectual Property”). With respect to each item of Company Intellectual Property, the Company or a SCT Subsidiary, as the case may be, owns the entire right, title and interest in and to such Company Intellectual Property, free and
clear of all Liens (other than Permitted Liens). To the Knowledge of the Company, and as described on Exhibit D, (i) except as set forth on Section 4.12(a)(i) of the Disclosure Letter no Person is engaging in any activity
that infringes any Company Intellectual Property, (ii) except as set forth on Section 4.12(a)(ii) of the Disclosure Letter no claim has been asserted to the Company in writing that the use of any Company Intellectual Property or the
operation of the Business as currently conducted infringes or violates the Intellectual Property of any third Person and (iii) the Company or a SCT Subsidiary, as the case may be, owns or has the right to use all Intellectual Property material
to the operation of the Business as currently conducted. 
 (b) The Company or a SCT Subsidiary, as the case may be, owns or has the right to
use all computer software (including data bases and related documentation) which is used in the conduct of the Business. 
 (c) Except as
described on Exhibit D, none of the Company Intellectual Property infringes upon or is in misappropriation of any patent, copyright, trade secret or other proprietary right of any third Person. 
 4.13 Tax Matters. 
 (a) All Tax
Returns required to be filed by, or with respect to, the Company and the SCT Subsidiaries have been timely filed and are true, accurate and complete in all material respects. All Taxes (whether or not shown to be due on any Tax Returns) have been
paid or have been accrued for on the Financial Statements. 
 (b) The Company and each SCT Subsidiary has duly and timely withheld and paid
all Taxes and other amounts required by any Governmental Authority to be collected or withheld by it (including any Taxes and other amounts required to be withheld by it in respect of any amount paid or credited or deemed to be paid or credited by
it to or for the account or benefit of any Person, including any employees, officers, directors and any non-resident Person), and have properly prepared in all material respects and timely filed all Form W-2s and 1099s (and any similar state, local
or foreign forms) with the appropriate Governmental Authorities. 
 (c) No waivers of statute of limitations or any agreement to extend the
time with respect to a Tax assessment or deficiency have been given or requested with respect to any Taxes payable by the Company or any of the SCT Subsidiaries. 
 (d) There are no Liens for Taxes (other than for Taxes not yet due or being contested in good faith and by appropriate proceedings, which proceedings, if any, are set forth on Section 4.13(d) of the Disclosure
Letter) on any of the assets of the Company or the SCT Subsidiaries. 
  

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 (e) No Tax is required to be withheld pursuant to Section 1445 of the Code as a result of the
transfer contemplated by this Agreement. 
 (f) From May 1, 1997 through December 31, 2000, Seller (i) had in effect and
maintained a valid election pursuant to Section 1362 of the Code to be subject to taxation under Subchapter S of the Code (an “S Election”), (ii) was an S corporation within the meaning of Section 1361(a)(1) of
the Code, (iii) filed all income Tax Returns in a manner consistent with its status as an S corporation, and (iv) had in effect and maintained, with respect to the Company and each SCT Subsidiary set forth on Section 4.13(f) of the
Disclosure Letter, valid “qualified subchapter S subsidiary” elections pursuant to Section 1361(b)(3) of the Code (a “QSub Election”). Since December 31, 2000 and at all times thereafter, Russell
Enterprises, Inc., the owner of all of the outstanding capital stock of Seller (“S Corporation Parent”), has had in effect and maintained a valid S Election and has been an S corporation within the meaning of
Section 1361(a)(1) of the Code, and has had in effect and maintained, with respect to Seller, the Company and each of the SCT Subsidiaries set forth on Section 4.13(f) of the Disclosure Letter, a valid QSub Election. Neither the
Company nor any SCT Subsidiary set forth on Section 4.13(f) of the Disclosure Letter has in the past ten years: acquired assets from another corporation in a transaction in which the Tax basis for the acquired assets was determined, in
whole or in part, by reference to the Tax basis of the acquired assets (or any other property) in the hands of the transferor, or acquired the stock of any corporation which is a qualified subchapter S subsidiary. 
 (g) Except as set forth on Section 4.13(g) of the Disclosure Letter, neither the Company nor any SCT Subsidiary will be required to include
any item of income in or exclude any item of deduction from any Tax period (or portion thereof) beginning on or after the Closing Date as a result of: (i) a change in accounting method for a Tax period (or portion thereof) beginning on or
before the Closing Date; (ii) any “closing agreement” as described in Section 7121 of the Code (or any similar provision of state, local or foreign Law); (iii) any installment sale or open transaction made on or prior to the
Closing Date; or (iv) any prepaid amount received on or prior to the Closing Date. 
 (h) Neither the Company nor any SCT Subsidiary
constitutes either a “distributing corporation” or a “controlled corporation” (within the meaning of Section 355(a)(1)(A) of the Code) in a distribution of shares qualifying for tax-free treatment under Section 355 of
the Code (i) in the five years prior to the date of this Agreement or (ii) in a distribution that could otherwise constitute part of a “plan” or “series of related transactions” (within the meaning of
Section 355(e) of the Code) in conjunction with the purchase of the Shares. 
 4.14 Labor Matters. Except as described on
Section 4.14 of the Disclosure Letter, (a) as of August 15, 2008, there are no pending unfair labor practice charges, grievances or complaints filed with any Governmental Authority based on the employment or termination by the
Company or any of the SCT Subsidiaries of any employee, (b) there is no labor strike, dispute, slowdown or work stoppage actually pending or, to the Knowledge of the Company, threatened in writing against the Company or any of the SCT
Subsidiaries, (c) neither the Company nor any of the SCT Subsidiaries is a party to a collective bargaining agreement, and no collective bargaining agreement relating to the employees of the Company or any of the SCT 

  

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Subsidiaries is currently being negotiated, and (d) neither the Company nor any SCT Subsidiary has committed any violation of any Law prohibiting
discrimination in employment in any form (including claims for harassment and/or other discrimination on the basis of age, race, color, religion, sex, national origin and/or mental or physical disability) and no events or circumstances exist which
would reasonably be expected to give rise to such a claim against the Company. 
 4.15 Employee Benefit Plans; Employees. 

(a) Section 4.15(a) of the Disclosure Letter sets forth a complete list of all Benefit Plans covering the current or former employees of
the Business, the Company and the SCT Subsidiaries (“Employees”), and neither the Company nor any SCT Subsidiary has any other Benefits Plans. Each Benefit Plan has in all material respects been established and administered
in accordance with its terms and in compliance with applicable Laws. Except as provided in Section 4.15(a) of the Disclosure Letter, the Internal Revenue Service has issued a favorable determination letter with respect to each Benefit
Plan that is intended to be a “qualified plan” within the meaning of Section 401(a) of the Code. Section 4.15(a) of the Disclosure Letter lists each Benefit Plan subject to Title IV or Section 302 of ERISA or
Section 412 of the Code. Except as provided in Section 4.15(a) of the Disclosure Letter, no Benefit Plan is a “multiemployer plan” within the meaning of Section 3(37) of ERISA. Except as provided in
Section 4.15(a) of the Disclosure Letter, no Benefit Plan has two or more contributing sponsors at least two of whom are not under common control, within the meaning of Section 4063 of ERISA (a “Multiple Employer
Plan”), nor has the Company or any SCT Subsidiary at any time contributed to, or been obligated to contribute to, any Multiple Employer Plan or any “multiemployer plan”. 
 (b) Except as provided in Section 4.15(b) of the Disclosure Letter, except for continuation coverage as required by Section 4980(B) of
the Code or by applicable state insurance Laws, no Benefit Plan provides life, health, medical or other welfare benefits to former employees or beneficiaries or dependents thereof and the Company and the SCT Subsidiaries have no current or projected
liability with respect to post employment or post retirement health or medical or life insurance benefits for retired, former or current employees, except as required to avoid excise tax under Section 4980B of the Code. 
 (c) With respect to any Benefit Plan for current or former Employees, no event has occurred and no condition or set of circumstances exists other than
the Divestiture under which any of the Company, the SCT Subsidiaries or the Business has indemnified or is required to indemnify any person against any liability (except liability for benefit claims and funding obligations payable in the ordinary
course). Except as provided in Section 4.15(c) of the Disclosure Letter neither the Company, the SCT Subsidiaries or their Affiliates nor any defined benefit plan maintained by the Company, the SCT Subsidiaries or their Affiliates have
incurred any material liability to the Pension Benefit Guaranty Corporation or the Internal Revenue Code except liabilities to the PBGC pursuant to Section 4007 of ERISA, all of which have been paid as due. Except as provided in
Section 4.15(c) of the Disclosure Letter no reportable event (as such term is used in section of 4043 of ERISA) or no “accumulated funding deficiency” (as such term is used in section 412 or 4971 of the Code) has occurred with
respect to Benefit Plan subject to Title IV of ERISA. 
  

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 (d) Except as set forth on Section 4.15(d) of the Disclosure Letter, neither the execution
and delivery of this Agreement, nor the consummation of the Transactions will (i) entitle any current or former employee of the Company or the SCT Subsidiaries to any increased or modified benefit or payment; (ii) increase the amount of
compensation due to any such employee, consultant, officer or director; (iii) accelerate the vesting, payment or funding of any compensation, stock-based benefit, incentive or other benefit; or (iv) result in any “parachute
payment” under Section 280G of the Code (whether or not such payment is considered to be reasonable compensation for services rendered). 
 (e) Section 4.15(e) of the Disclosure Letter sets forth a complete and accurate list of all of the Employees together with the following information for each such Employee: name, position held, current salary, 2008 (anticipated)
annual bonus and long-term incentive payments, (if any), Fair Labor Standards Act status, date of hire, annual vacation entitlement, accrued but unused vacation and service date for employee benefit plan purposes. Section 4.15(e) of the
Disclosure Letter indicates which Employees are inactive employees due to an approved medical, family, military or personal leave and, to the extent known, the date on which each inactive employee is expected to return to active employment.
Section 4.15(e) of the Disclosure Letter will be updated as of the date that is five (5) Business Days prior to the Closing Date and will be true and correct as of that date. 
 (f) Except as set forth in Section 4.15(f) of the Disclosure Letter, all Employees are employees “at will” whose employment is
terminable without liability therefor. Except as described in Section 4.15(f) of the Disclosure Letter and other than offer letters to (i) current salaried employees in the ordinary course of business and (ii) hourly employees,
none of the Employees have contracts or other agreements relating to stay bonuses and offer letters providing for retention or stay payments, commissions, compensation, special monetary or vacation awards, non-compete provisions or agreements,
perquisites (e.g., club memberships), stock options, warrants or other benefits to Employees. 
 (g) Except as provided in
Section 4.15(g) of the Disclosure Letter, the Company and the SCT Subsidiaries have not received written notification of any impediment to the employment of the Employees under applicable Laws and the Company does not otherwise have
Knowledge of any impediment. Except as set forth in Section 4.15(g) of the Disclosure Letter, each of the Company and the SCT Subsidiaries is in material compliance with the requirements of IRCA and none of the Employees is working based
upon a non-resident Visa. Seller and its Affiliates have each complied in all material respects with the requirements of Executive Order 11246. 
 4.16 Permits; Compliance with Laws. The Company and the SCT Subsidiaries have all Permits required by any Governmental Authority that are material to the operation of the Business and the use of its properties as presently conducted
or used, and all such Permits are in full force and effect. No action, claim or proceeding is pending, nor, to the Knowledge of the Company, threatened in writing, to suspend, revoke, revise, limit, restrict or terminate any of such Permits or
declare any such Permit invalid. The Company and the SCT Subsidiaries are in compliance in all material respects with the Permits and all applicable Laws, and the Company has not received any written notice to the contrary. 
  

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 4.17 Assets, Inventories and Receivables. 
 (a) Except as set forth on Section 4.17 of the Disclosure Letter, the Company or one of the SCT Subsidiaries has good and valid title to, and
is the lawful owner of, all of the tangible assets the Company or such SCT Subsidiary purports to own, free and clear of all Liens, other than Permitted Liens. The tangible assets of the Company and the SCT Subsidiaries are in good working
condition, reasonable wear and tear and loss due to normal operations excepted. 
 (b) The inventories of the Business consist of a quality
and quantity usable and, with respect to finished goods, saleable, in the ordinary course of the Business, and do not include obsolete items (consistently calculated in accordance with the Company’s and the SCT Subsidiaries’ current
methodology) in excess of any reserves for obsolete inventory included in the Financial Statements and the Final Closing Balance Sheet. 
 (c) (i) No fact or circumstance exists which would result in the un-collectability of any accounts receivables of the Company or any SCT Subsidiary and (ii) there is no contest, claim, defense or right of setoff pending, other than
returns in the ordinary course of business, under any Contract with any account debtor of an account receivable relating to the amount or validity of such account receivable, in each case in excess of any reserves included in the Financial
Statements and the Final Closing Balance Sheet. 
 4.18 Environmental Matters. 
 (a) Except as set forth on Section 4.18(a) of the Disclosure Letter: 
 (i) The Company and SCT Subsidiaries have complied in all material respects with all Environmental Laws; 
 (ii) Neither the Company nor any SCT Subsidiary has received written notice of any violation of Environmental Laws by any Governmental Authority or
other Person; 
 (iii) None of the Company or any SCT Subsidiary has received any written notice that any property owned, operated or leased
by the Company or any SCT Subsidiary is listed on any list of sites requiring investigation or cleanup; and no Lien has been filed against either the personal or real property of the Company or any SCT Subsidiary under any Environmental Law or any
regulation promulgated thereunder or order issued with respect thereto; 
 (iv) There has been no Release of any Hazardous Substance in, on
or affecting any properties owned, leased or operated by the Company or any SCT Subsidiary other than in accordance with applicable Environmental Laws; 
 (v) None of the Company or any SCT Subsidiary has treated, stored, disposed of, arranged for disposal or treatment of, or arranged with a transporter for disposal or treatment of, or Released any Hazardous Substance
at or to any third party owned property or facility, so as to give rise to any current or future liability, including any liability for response costs, corrective action costs, personal injury, property damage, natural resources damages or
attorney’s fees, or any investigative, corrective or remedial obligation, pursuant to any Environmental Laws; 
  

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 (vi) The Company and the SCT Subsidiaries have obtained all material Permits required under applicable
Environmental Laws necessary for the operation of the Business, and all such Permits are in full force and effect, and no action, claim or proceeding is pending, nor, to the Knowledge of the Company, threatened, to suspend, revoke, revise, limit,
restrict or terminate any of such Permits or declare any such Permit invalid; and 
 (vii) There are no underground or above ground storage
tanks regulated pursuant to RCRA § 9001 (42 U.S.C. § 6991) or equivalent authorized state program located at, on, in or under the Real Property. 
 (b) Notwithstanding the generality of any other representations and warranties in this Agreement, the representations and warranties in this Section 4.18 shall be deemed the only representations and warranties
in this Agreement with respect to matters directly or indirectly relating to, or arising out of, Environmental Laws or Hazardous Substances. 
 4.19 Insurance. Section 4.19 of the Disclosure Letter sets forth the following information with respect to each insurance policy to which the Company or any of the SCT Subsidiaries is a party: the name of the insurer, the
policy number, the period of coverage and the amount of coverage. To the Knowledge of the Company, all of the insurance policies set forth on Section 4.19 of the Disclosure Letter are in full force and effect. All premiums due with
respect to the insurance policies set forth on Section 4.19 of the Disclosure Letter have been paid and no notice of cancellation or termination or intent to cancel any such insurance policy has been received by the Company or any SCT
Subsidiary, and neither Company nor any SCT Subsidiary is in default under any such insurance policy. 
 4.20 Absence of Undisclosed
Liabilities. Except (a) for liabilities incurred in connection with the Transactions; (b) for liabilities set forth in the Financial Statements or otherwise disclosed in the notes thereto; (c) for liabilities or obligations
arising under any Contract to which the Company or any of the SCT Subsidiaries is a party or is bound (excluding any liability for a breach by the Company or any of the SCT Subsidiaries of any such Contract); (d) for liabilities incurred in the
ordinary course of business since June 30, 2008; or (e) as set forth on Section 4.20 of the Disclosure Letter, the Company has no liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise)
required by GAAP to be set forth on a consolidated balance sheet of the Company or in the notes thereto. 
 4.21 Related Party
Transactions. Except as set forth on Section 4.21 of the Disclosure Letter, no stockholder, director or officer of the Company or any SCT Subsidiary: 
 (a) owns or leases any asset used in the Business, or 
 (b) is a party to any Contract with the Company or
any of the SCT Subsidiaries. 
 4.22 Product Warranties. Except as set forth on Section 4.22 of the Disclosure Letter,
each product manufactured, sold, leased or delivered by the Company or any SCT Subsidiary in 

  

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connection with the Business has been in conformity in all material respects with all applicable Contracts and all express and implied warranties. None of
the Company or any SCT Subsidiary has any liability for replacement or repair of any product manufactured, sold, leased or delivered by the Company or any SCT Subsidiary in connection with the Business in excess of the reserves therefor set forth on
the Financial Statements and the Final Closing Balance Sheet. 
 4.23 Product Liability. 
 (a) Except as set forth on Section 4.23(a) of the Disclosure Letter, (i) there is no Proceeding, nor has the Company received any written
notice of violation or investigation of a civil, criminal or administrative nature by or before any court or other Governmental Authority against or involving any product, substance or material manufactured, assembled, produced, distributed,
serviced or sold by or on behalf of the Company or any SCT Subsidiary (collectively, “Product”), or class of claims or lawsuits involving a Product which is pending or, to the Knowledge of the Company, threatened in writing,
on behalf of the purchaser of any Product, resulting from an alleged defect in design, manufacture, materials or workmanship of any Product, or any alleged failure to warn or from any breach of express or implied specifications or warranties or
representations, and (ii) there has not been, and there is not under consideration or investigation by the Company or any SCT Subsidiary, any Product recall or post-sale warning (collectively, such recalls and post-sale warnings are referred to
as “Recalls”) conducted by or on behalf of the Company or any SCT Subsidiary concerning any Product, or, to the Knowledge of the Company, any Recall conducted by or on behalf of any third Person as a result of any alleged defect in
any Product in excess of the reserves therefor set forth on the Financial Statements and the Final Closing Balance Sheet for product warranty and product liability. 
 (b) No event has occurred and no circumstance exists that would reasonably be expected to give rise to any liability in excess of the reserves therefor set forth on the Financial Statements and the Final Closing
Balance Sheet for product warranty and product liability or serve as a basis for the commencement of any Proceeding, hearing, charge, complaint or claim against the Company or any SCT Subsidiary or otherwise relating to the Business based on or
related to any Product. 
 4.24 Finders; Brokers. Except as set forth on Section 4.24 of the Disclosure Letter, the
Company is not party to any agreement with any finder or broker, or in any way obligated to any finder or broker for any commissions, fees or expenses, in connection with the origin, negotiation, execution or performance of this Agreement for which
the Buying Parties will be liable. 
  

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 ARTICLE V 
 REPRESENTATIONS AND WARRANTIES OF SELLER 
 Except as set forth on the Disclosure Letter, Seller hereby
represents and warrants to Buying Parties that, as of the date of this Agreement: 
 5.1 Corporate Existence. Seller is a corporation
validly existing and in good standing under the laws of the State of Delaware and has all necessary corporate power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the Transactions. 
 5.2 Corporate Authority and Ownership. This Agreement and the consummation of the Transactions have been duly authorized by all requisite
corporate acts or proceedings of Seller, and Seller has all necessary corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly executed and delivered by Seller and,
assuming due authorization, execution and delivery hereof by the Buying Parties, this Agreement constitutes a valid and binding obligation of Seller, enforceable in accordance with its terms. Seller is the sole record and beneficial owner of, and
has good and valid title to, all of the Shares, free and clear of all Liens and Restrictions. 
 5.3 Absence of Conflicts. The
execution and delivery of this Agreement by Seller and, subject to the required compliance with Antitrust Laws related to the Transactions, the consummation by Seller of the Transactions will not (a) violate, conflict with or result in the
breach of the certificate of incorporation or bylaws of Seller, (b) conflict with or violate any Law, judgment or decree of any Governmental Authority applicable to Seller or (c) conflict with, result in any breach of, constitute a default
(or event which with the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights of termination or cancellation, modification or acceleration of, any Contract to which Seller
is a party. 
 5.4 Governmental Approvals; Consents. No claim, legal action, suit, arbitration, governmental investigation or other
legal or administrative Proceeding is pending or, to the Knowledge of Seller, threatened in writing against Seller which would enjoin or delay the Transactions. Except as required by Antitrust Laws, no consent, approval, order or authorization of,
license or permit from, notice to or registration, declaration or filing with any Governmental Authority or of any third party, is or has been required on the part of Seller in connection with the execution and delivery of this Agreement or the
consummation of the Transactions, except for such consents, approvals, orders or authorizations of, licenses or permits, filing, registrations, declarations or notices which have been obtained or which may be necessary as a result of any facts
relating solely to the Buying Parties or their Affiliates. 
 EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN ARTICLE IV
AND ARTICLE V, NONE OF SELLER, THE COMPANY OR ANY SCT SUBSIDIARY NOR ANY OTHER PERSON MAKES ANY OTHER REPRESENTATIONS OR WARRANTIES, WRITTEN OR ORAL, STATUTORY, EXPRESS OR IMPLIED, WITH RESPECT TO THE COMPANY AND THE SCT SUBSIDIARIES OR THE
BUSINESS, 

  

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OPERATIONS, ASSETS, LIABILITIES, CONDITION (FINANCIAL OR OTHERWISE) OR PROSPECTS OF THE COMPANY AND THE SCT SUBSIDIARIES OR THE NEGOTIATION, EXECUTION,
DELIVERY OR PERFORMANCE OF THIS AGREEMENT BY THE COMPANY OR SELLER. MORE SPECIFICALLY, EXCEPT AS EXPRESSLY PROVIDED IN ARTICLE IV, THE COMPANY AND SELLER DO NOT MAKE OR PROVIDE, ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, AS TO THE
QUALITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMITY TO SAMPLES, OR CONDITION OF THE COMPANY’S AND THE SCT SUBSIDIARIES’ ASSETS OR ANY PART THEREOF. 
 ARTICLE VI 
 REPRESENTATIONS AND WARRANTIES OF THE BUYING PARTIES 
 Except as set forth on Buyer Disclosure Letter, the Buying Parties jointly and severally represent and warrant to the Company and Seller, as of the date
of this Agreement: 
 6.1 Corporate Existence. Each of the Buying Parties is a corporation validly existing and in good standing under
the laws of the jurisdiction of its incorporation and has all necessary corporate power and authority to enter into this Agreement, to carry out its obligations hereunder and to consummate the Transactions. 
 6.2 Corporate Authority. This Agreement and the consummation of all of the Transactions have been duly authorized by all requisite corporate acts
or proceedings of each Buying Party, and each Buying Party has all necessary corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder. This Agreement has been duly executed and delivered by each
Buying Party and, assuming due authorization, execution and delivery hereof by the Company and Seller, constitutes a valid and binding obligation of each Buying Party, enforceable in accordance with its terms. 
 6.3 Absence of Conflicts. The execution and delivery of this Agreement by the Buying Parties and, subject to the required compliance with
Antitrust Laws related to the Transactions, the consummation by the Buying Parties of the Transactions will not (a) violate, conflict with or result in the breach of the certificate of incorporation or bylaws (or similar organizational
documents) of any Buying Party, (b) conflict with or violate any Law, judgment or decree of any Governmental Authority applicable to any Buying Party or (c) conflict with, result in any breach of, constitute a default (or event which with
the giving of notice or lapse of time, or both, would become a default) under, require any consent under, or give to others any rights of termination or cancellation, modification or acceleration of, any Contract to which either of the Buying
Parties is a party, except, in the case of clauses (b) and (c), as would not reasonably be expected to have a Buyer Material Adverse Effect. 
 6.4 Governmental Approvals; Consents. No claim, legal action, suit, arbitration, governmental investigation, action, or other legal or administrative Proceeding is pending or, to the Knowledge of either Buying Party, threatened in
writing against a Buying Party which would enjoin or delay the Transactions. Except as required by Antitrust Laws, no consent, approval, order or authorization of, license or permit from, notice to or registration, declaration or filing 

  

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with any Governmental Authority or of any third party, is or has been required on the part of either Buying Party in connection with the execution and
delivery of this Agreement or the consummation of the Transactions, except for such consents, approvals, orders or authorizations of, licenses or permits, filings, registrations, declarations or notices the failure of which to obtain or make would
not reasonably be expected to have a Buyer Material Adverse Effect or which have been obtained. 
 6.5 Finders; Brokers. Neither
Buying Party is a party to any agreement with any finder or broker, or in any way obligated to any finder or broker for any commissions, fees or expenses, in connection with the origin, negotiation, execution or performance of this Agreement for
which Seller or any of its Affiliates will be liable. 
 6.6 Purchase for Investment. Each Buying Party is aware that the Shares and
the Durox Shares being acquired are not registered under the Securities Act, or under any state or foreign securities Laws. Neither Buying Party is an underwriter, as such term is defined under the Securities Act, and the Buying Parties are
purchasing such Shares and such Durox Shares solely for investment, with no present intention to distribute any such Shares or such Durox Shares to any Person, and neither Buying Party will sell or otherwise dispose of the Shares or the Durox Shares
except in compliance with the registration requirements or exemption provisions under the Securities Act and the rules and regulations promulgated thereunder, or any other applicable securities laws. 
 6.7 Financing. On the Closing Date, the Buying Parties will have sufficient cash, available lines of credit or other sources of immediately
available funds to enable the Buying Parties to pay, in cash, the Purchase Price and all other amounts payable pursuant to this Agreement or otherwise necessary to consummate the Transactions. 
 6.8 Litigation. There is no pending or, to the Knowledge of the Buying Parties, threatened in writing legal or administrative Proceeding, against
either of the Buying Parties which would reasonably be expected to affect the legality, validity or enforceability of this Agreement or the consummation of the Transactions. 
 6.9 Independent Investigation. The representations and warranties of the Company and Seller set forth in Article IV and Article V
constitute the sole and exclusive representations and warranties of the Company and Seller to the Buying Parties in connection with the Transactions, and the Buying Parties understand, acknowledge and agree that all other representations and
warranties of any kind or nature expressed or implied, at common law, by statute or otherwise (including, any relating to the future or historical financial condition, results of operations, assets or liabilities of the Company and the SCT
Subsidiaries, or the quality, quantity or condition of the Company’s and SCT Subsidiaries’ assets) are specifically disclaimed by the Company and Seller. Except as expressly set forth in Article IV, the Company and Seller do not
make or provide any warranty or representation, express or implied, as to the quality, merchantability, fitness for a particular purpose, conformity to samples, or condition of the Company’s or the SCT Subsidiaries’ assets or any part
thereof. The Buying Parties hereby acknowledge and agree to the limitations and acknowledgements set forth in all capital letters at the end of Article V. Except as expressly provided in this Agreement and the Disclosure Schedules and except
for fraud, the Buying Parties hereby expressly waive and relinquish any 

  

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and all rights, claims and causes of action against the Company, the SCT Subsidiaries, Seller and their respective Affiliates and representatives in
connection with, the accuracy, completeness or materiality of any information, data or other materials (written or oral) heretofore furnished to the Buying Parties and their respective representatives by or on behalf of the Company or Seller
(including the confidential memorandum, management presentation and other information provided to the Buying Parties by the Company, Seller or their representatives). Without limiting the foregoing, neither the Company nor Seller are making any
representation or warranty to the Buying Parties with respect to any financial projection or forecast relating to the business, operations, assets, liabilities, condition (financial or otherwise) or prospects of the Company and the SCT Subsidiaries
or any subset thereof. With respect to any projection or forecast delivered on behalf of the Company or Seller to the Buying Parties or their respective representatives, the Buying Parties acknowledge that (i) there are uncertainties inherent
in attempting to make such projections and forecasts, (ii) the Buying Parties are familiar with such uncertainties, (iii) the Buying Parties are taking full responsibility for making their own evaluation of the adequacy and accuracy of all
such projections and forecasts furnished to them and (iv) the Buying Parties shall have no claim against Seller, the Company, the SCT Subsidiaries or their respective Affiliates with respect solely thereto. 
 ARTICLE VII 
 AGREEMENTS OF ALL PARTIES

 7.1 Operation of the Business. Except as contemplated by this Agreement or as disclosed on Section 7.1 of the Disclosure
Letter (such exceptions and disclosed matters herein referred to as “Permitted Transactions”), from the date hereof until the earlier of the Closing or the termination of this Agreement, Seller shall cause the Company and
the SCT Subsidiaries to use all commercially reasonable efforts (i) to continue, in a manner consistent with the past practices of the Business, operating and conducting the Business in the ordinary course, and (ii) not to take any of the
following actions in connection with or on behalf of the Business without the prior written approval of Buyer (which approval shall not be unreasonably withheld, conditioned or delayed): 
 (a) sell, lease, transfer or otherwise dispose of or encumber (other than Permitted Liens) any of the properties or assets of the Business, other than
(i) in the ordinary course of business, (ii) properties or assets of the Business with an aggregate value less than $500,000 or (iii) with respect to the Divestiture; 
 (b) cancel any material debts or waive any material claims or rights pertaining to the Business, except in the ordinary course of business; 

(c) grant any increase in the compensation of officers or employees, except for increases (i) in the ordinary course of business and consistent
with past practice, (ii) as a result of collective bargaining, (iii) as required by any Benefit Plan or agreement, or (iv) as required by Law; 
 (d) except in the ordinary course of business, incur, assume or guarantee any Funded Debt other than (i) purchase money borrowings, (ii) refunding of existing Funded Debt, (iii) indebtedness to an
Affiliate incurred in the ordinary course of business, and (iv) other Funded Debt with an aggregate principal amount of less than $1,000,000; 
  

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 (e) issue, sell or grant any shares of capital stock of the Company or any capital stock or other equity
interest of any SCT Subsidiary, or any securities or rights convertible into, exchangeable or exercisable for, or evidencing the right to subscribe for, any shares of such capital stock or other equity interest other than with respect to the
Divestiture; 
 (f) make voluntary investments in or acquisitions on behalf of or for the Business (by purchase of securities or assets,
merger or consolidation, or otherwise) of other Persons, businesses or divisions thereof for consideration in excess of $500,000 in the aggregate for all such investments and acquisitions, except for acquisitions in settlement of outstanding debts
or pursuant to bankruptcy or restructuring plans of entities of which the Company or any of the SCT Subsidiaries is a creditor; 
 (g) make
loans or advances on behalf of or for the Business (other than travel and similar advances to its employees and trade credit to customers in the ordinary course of business) to any Person, except for those loans or advances not in excess of $5,000
in the aggregate outstanding at any time without taking into account any Permitted Transactions; 
 (h) amend in any respect the
organizational or charter documents of the Company or any of the SCT Subsidiaries; 
 (i) adopt a plan or agreement of complete or partial
liquidation, dissolution, restructuring, recapitalization, merger, consolidation or other reorganization of the Company or any of the SCT Subsidiaries (other than as contemplated hereby); 
 (j) enter into any new customer or supplier Contract involving aggregate payments or sales in excess of $500,000; 
 (k) take any action that would cause the Company or any SCT Subsidiary (other than any SCT Subsidiary that is not currently a qualified subchapter S
subsidiary) to not be a qualified subchapter S subsidiary as defined in Section 1361(b)(3)(B) of the Code as of the Closing Date; or 
 (l) agree, whether in writing or otherwise, to do any of the foregoing; 
 provided, however, that the limitations set forth in
clauses Section 7.1(a) through Section 7.1(l) shall not apply to any action, transaction or event occurring exclusively between the Company and any SCT Subsidiary or between any of the SCT Subsidiaries in the ordinary course
of business. 
 7.2 Mutual Cooperation; No Inconsistent Action. 
 (a) Subject to the terms and conditions of this Agreement, Seller and the Company, on the one hand, and the Buying Parties, on the other hand, shall
cooperate with each other and use their respective commercially reasonable efforts to promptly (i) take or cause to be taken all actions, and do or cause to be done all things necessary, proper or advisable under this 

  

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Agreement and applicable Laws to consummate the Transactions as soon as practicable, including preparing and filing promptly and fully all documentation to
effect all necessary filings, notices, petitions, statements, registrations, submissions of information, applications and other documents (including any required filings under applicable Antitrust Laws) and (ii) subject to this
Section 7.2, obtain all approvals, consents, registrations, permits, authorizations and other confirmations from any Governmental Authority necessary to consummate the Transactions. The Company shall in good faith consult with Buyer
regarding the material terms and progress of any negotiation or renegotiation of any collective bargaining agreement or other union contract. Subject to applicable Laws relating to the exchange of information and in addition to
Section 7.2(c), the Parties shall have the right to review in advance, and to the extent practicable each will consult the other regarding, all the information relating to the Party, as the case may be, that appears in any filing made
with, or written materials submitted to, any third party and/or any Governmental Authority in connection with the Transactions. 
 (b) In
furtherance and not in limitation of the foregoing, each Party agrees to make an appropriate filing of a Notification and Report Form pursuant to the HSR Act with respect to the Transactions as promptly as practicable and in any event within ten
(10) Business Days of the date hereof and to supply as promptly as practicable any additional information and documentary material that may be requested pursuant to the HSR Act and any other applicable Antitrust Laws and use its best efforts to
take, or cause to be taken, all other actions consistent with, and subject to, this Section 7.2 necessary to cause the expiration or termination of the applicable mandatory waiting periods under the HSR Act as soon as practicable,
including requesting early termination of the waiting period under the HSR Act. 
 (c) Each Party shall use commercially reasonable efforts
to (i) cooperate in all respects with each other in connection with any filing or submission with any Governmental Authority in connection with the Transactions and in connection with any investigation or other inquiry by or before a
Governmental Authority relating to the Transactions, including any Proceeding initiated by a private party, and (ii) keep the other Party informed in all material respects and on a reasonably timely basis of any communication received by such
Party or its Affiliates from, or given by such Party to, the Federal Trade Commission, the Antitrust Division of the Department of Justice, or any other Governmental Authority and of any communication received or given in connection with any
Proceeding by a private party, in each case regarding any of the Transactions. 
 (d) In furtherance and not in limitation of the covenants
of the Parties contained in this Section 7.2, and subject to the conditions below, each Party shall use its best efforts to resolve such objections, if any, as may be asserted by a Governmental Authority or other Person with respect to
the Transactions. Without limiting any other provision hereof, but subject to the conditions below, the Parties shall each use its best efforts to (i) avoid the entry of, or to have vacated or terminated, any decree, order or judgment that
would restrain, prevent or delay the consummation of the Transactions, on or before the Termination Date, including by defending through litigation on the merits any claim asserted in any court by any Person, and (ii) avoid or eliminate each
and every impediment under any Antitrust Law that may be asserted by any Governmental Authority with respect to the Transactions so as to enable the consummation of the Transactions to occur as soon as reasonably possible (and in any event no later
than the Termination Date). The Buying Parties agree to negotiate, commit to or effect as promptly as 

  

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practicable, by consent decree, hold separate orders, or otherwise, the sale, divesture or disposition of such assets, properties or businesses of the Buying
Parties or of the Business to be acquired by them pursuant hereto, and the entrance into such other arrangements, as are necessary or advisable in order to avoid the entry of, and the commencement of litigation seeking the entry of, or to effect the
dissolution of, any injunction, temporary restraining order or other order in any Proceeding, which would otherwise have the effect of materially delaying or preventing the consummation of the Transactions; provided, however, that the
Buying Parties shall not be required to take any such actions that would cause the Buying Parties or their Subsidiaries to (i) divest any business, asset, or product line of the Business generating either revenues in excess of Twenty-Five
Million Dollars ($25,000,000), or earnings before interest and taxes in excess of Three Million Dollars ($3,000,000), in fiscal year 2007, (ii) restrict, curtail, hold separate or otherwise affect or limit the operation of any business, asset
or product line of the Business such that the Buying Parties’ or their Subsidiaries’ revenues (or anticipated revenues in the case of the Business) would be decreased by more than Twenty-Five Million Dollars ($25,000,000) or the Buying
Parties’ or their Subsidiaries’ earnings before interest and taxes (or anticipated earnings before interest and taxes in the case of the Business) would be decreased by more than Three Million Dollars ($3,000,000), based on the results of
fiscal year 2007 or (iii) divest any other business or product line of Buyer or its Affiliates (other than as provided in subclauses (i) and (ii) above). In addition, the Buying Parties shall use their best efforts to defend through
litigation on the merits any claim asserted in court by any party in order to avoid entry of, or to have vacated or terminated, any decree, order or judgment (whether temporary, preliminary or permanent) that would prevent the Closing from occurring
as promptly as practicable; provided, however, that such efforts shall not require the Buying Parties to appeal any adverse decision beyond the United States Court of Appeals. 
 (e) The Company and Seller, on the one hand, and the Buying Parties, on the other hand, shall notify and keep the other advised as to any litigation or
administrative Proceeding pending and known to such Party, or, to its Knowledge, threatened in writing, which challenges the Transactions. Subject to Section 7.2 and Article XI, the Company, Seller and the Buying Parties shall not take
any action inconsistent with their obligations under this Agreement or which would materially hinder or delay the consummation of the Transactions. 
 7.3 Public Disclosures. Prior to the Closing Date, no Party shall (except in the case of the Company with respect to disclosures made to the employees or customers of the Company and the SCT Subsidiaries) issue any press release or
make any other public disclosures concerning this Transactions or the contents of this Agreement without the prior written consent of the other Party, unless a Party believes, upon advice of counsel, it is required by Law or regulation (of
any applicable stock or securities exchange or otherwise) to make such public disclosure. The Parties shall reasonably cooperate as to the timing and contents of any public announcement or communication. 
 7.4 Access to Records and Personnel. 
 (a) From the date hereof until the earlier of the Closing or termination of this Agreement, upon reasonable notice, Seller shall cause the Company and the SCT Subsidiaries to (i) afford the Buying Parties and their representatives
reasonable access to the senior managers of the Company and the SCT Subsidiaries and (ii) furnish to the representatives of the Buying 

  

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Parties such additional financial and operating data and other material information regarding the Business (or copies thereof) as the Buying Parties may from
time to time reasonably request; provided, however, that any such access or furnishing of information shall be conducted at the Buying Parties’ expense, during normal business hours, and in such a manner as not to unreasonably
interfere with the normal operations of the Business. Notwithstanding anything to the contrary in this Agreement, neither Seller, the Company nor the SCT Subsidiaries shall be required to disclose any information to the Buying Parties if such
disclosure would (i) jeopardize any attorney-client or other legal privilege, (ii) contravene any applicable Laws (including applicable Antitrust Laws), fiduciary duty or binding agreement entered into prior to the date hereof,
(iii) disrupt or jeopardize any material customer or vendor relationship or (iv) include Tax information pertaining to Seller or its Affiliates other than the Company and the SCT Subsidiaries. 
 (b) From and after the Closing Date, the Parties shall, and the Buying Parties shall cause the Company and the SCT Subsidiaries to, retain the books,
records, documents, instruments, accounts, correspondence, writings, evidences of title and other papers relating to the Company and the SCT Subsidiaries in their possession (the “Books and Records”) for seven (7) years
or for such longer period as may be required by Law. 
 (c) From and after the Closing Date, the Parties shall allow each other, and Buyer
shall cause the Company and the SCT Subsidiaries to allow Seller, its Affiliates and their respective representatives, reasonable access during normal business hours to the Books and Records and to personnel having knowledge of the whereabouts
and/or contents of the Books and Records, for legitimate non-competitive business reasons, including all information required to calculate and verify the amounts set forth in Article III, the preparation of the Preliminary Closing Balance
Sheet, the Final Closing Balance Sheet and Seller’s Tax Returns and the defense of Proceedings. Each Party shall be entitled to recover its out-of-pocket costs (including copying costs) incurred in providing such Books and Records to the other
Party, except with respect to information provided by Buyer, the Company and the SCT Subsidiaries to Seller in connection with the preparation of the Preliminary Closing Balance Sheet, the Final Closing Balance Sheet or Seller’s Tax Returns or
resolution of any dispute with respect to Article III. The requesting Party shall, and the Buying Parties shall cause the Company, the SCT Subsidiaries and their respective Affiliates to hold in confidence all confidential information
identified as such by, and obtained after the Closing from, the disclosing Party or any of its officers, agents, representatives or employees; provided, however, that information that (i) was in the public domain; (ii) was in
fact known to the requesting Party prior to disclosure by the disclosing Party, its officers, agents, representatives or employees; (iii) becomes known to the requesting Party from or through a third party not under an obligation of
non-disclosure to the disclosing Party; or (iv) Seller is required by Law or otherwise deems necessary and proper to disclose in connection with the filing, examination or defense of any Tax Return or other document required to be filed, shall
not be deemed to be confidential information. In addition, the Parties agree that confidential information may only be used for the purpose for which it was supplied. 
  

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 7.5 Employee Relations and Benefits. 
 (a) Immediately prior to the Closing, the Company shall pay to Management in immediately available U.S. federal funds the Management Incentive Payment.
Seller shall be responsible for all Tax, withholding, reporting, accounting and other obligations associated with the Management Incentive Payment and except as provided in Section 3.5, the Buying Parties shall have no responsibility
therefor. 
 (b) (i) As soon as practicable after the Closing, Seller and the Company shall take appropriate corporate action to distribute
the balances of the incentive compensation accounts of all participants in the Executive Incentive Plan in the form of a lump sum in accordance with the terms of the Executive Incentive Plan. Upon completion of such distribution, the Buying Parties
shall be under no obligation to continue to maintain the Executive Incentive Plan. 
 (ii) Buying Parties acknowledge and agree that the
Company shall pay to the employees all accrued benefits under the Annual SCT Bonus Plan including any appropriate accruals related to the period beginning on January 1, 2008 and ending on the Closing Date, in accordance with the terms of the
Annual SCT Bonus Plan, to the extent that such accrued benefits and 2008 accruals are reserved against on the Preliminary Closing Balance Sheet; provided, however, that in no event shall the Company pay to the employees pursuant to the
Annual SCT Bonus Plan any amounts that are less than the amount of such benefits that have been reserved against on the Preliminary Closing Balance Sheet. After the Closing Date, employees may become eligible to participate in Buyer bonus and
incentive plans in Buyer’s discretion. 
 (iii) Buying Parties acknowledge and agree that the accruals for the Company’s existing
401(k) profit sharing plans (as described in Section 4.15(a) of the Disclosure Letter) related to the period beginning on January 1, 2008 and ending on the Closing Date shall be credited and funded to eligible Employees’ profit
sharing accounts as soon as practicable following the Closing Date. 
 All amounts described in this Section 7.5(b) shall be paid or credited, as
applicable, no later than the last day of the calendar month following the calendar month in which the Closing Date occurs. 
 (c) The Buying
Parties or one of its Affiliates shall recognize all service of the employees with the Company and the SCT Subsidiaries prior to the Closing Date as service with the Buying Parties and its Affiliates in connection with any tax-qualified pension
plan, 401(k) savings plan, welfare benefit plans and employment policies (including vacations and holiday policies) maintained by the Buying Parties or one of their Affiliates that are made available following the Closing Date by the Buying Parties
or one of their Affiliates for purposes of any waiting period, vesting, eligibility and benefit entitlement (but excluding pension plan accruals); provided, however, that with respect to any defined benefit pension plan maintained by
the Buying Parties or one of their Affiliates in which such employee participates following the Closing Date, such service credit shall be measured from the earliest date that such employee commenced participation in a tax-qualified pension or
savings plan maintained by the Company and the SCT Subsidiaries. 
  

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 (d) The Buying Parties shall (i) waive, or use commercially reasonable efforts to cause their
insurance carriers to waive, all limitations as to pre-existing and at-work conditions, if any, with respect to participation and coverage requirements applicable to the employees of the Company and the SCT Subsidiaries under any welfare benefit
plan (as defined in Section 3(l) of ERISA) that is made available to such employees following the Closing Date by the Buying Parties or one of their Affiliates, and (ii) provide credit to such employees for any co-payments, deductibles and
out-of-pocket expenses paid by such employees under the employee benefit plans, programs and arrangements of the Company and the SCT Subsidiaries during the portion of the relevant plan year including the Closing Date. The Buying Parties shall
assume responsibility for all liabilities arising under the Benefit Plans in accordance with Section 4980B of the Code regardless of whether such liability accrued before or after the Closing Date. 
 (e) Nothing herein, expressed or implied, shall confer upon any employee or former employee of the Company or any of the SCT Subsidiaries, or the Buying
Parties or any of their respective Affiliates, any right to employment or continued employment for any specified period, under or by reason of this Agreement. 
 (f) The Buying Parties shall retain full responsibility for compliance with the Worker’s Adjustment and Restraining Notification Act of 1988, as amended, and be solely responsible for furnishing any required
notice of any “plant closing” or “mass layoff”, as applicable, which arise as a result of any facility closings, reductions in work force or termination or other action, that the Company and the SCT Subsidiaries may cause or
initiate on or after the Closing Date and shall jointly and severally indemnify Seller and its Affiliates for any liability related thereto, including reasonable attorneys’ fees related thereto. 
 (g) If the terms of any Benefit Plan named in Section 4.15(b) of the Disclosure Letter, provide any eligible current or former employee of
the Company or the SCT Subsidiaries, as a result of the Transactions, with (i) an increased or modified benefit or payment; (ii) an increased amount of compensation due to any such employee, consultant, officer or director; or
(iii) accelerated vesting, payment or funding of any compensation, stock-based benefit, incentive or other benefit, then Buyer shall provide such benefit or compensation as soon as reasonably practicable following the Closing Date. This
Section 7.5(g) includes the full and immediate vesting and payment of the balances in the incentive compensation accounts of each individual who is a participant in the Standard Car Truck Company and Affiliates Executive Incentive
Compensation Plan on the Closing Date, which payment shall be in the form of a lump sum and shall be made as soon as practicable following the Closing Date. 
 7.6 Update to Disclosure. 
 (a) Between the date of this Agreement and the Closing, Seller shall
promptly inform Buyer in writing should it become aware of the existence or occurrence of (i) any representation or warranty in this Agreement made as of the date hereof being untrue or of any breach of any covenant of Seller in this Agreement
(“Pre-Signing Supplemental Information”) or (ii) any matter arising after the date hereof but prior to the Closing that if existing or occurring 

  

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at or prior to the date of this Agreement would have been required to be set forth or described in the Disclosure Letter, (“Post-Signing
Supplemental Information”). Pre-Signing Supplemental Information and Post-Signing Supplemental Information shall be taken into account in determining satisfaction of the conditions specified in Section 8.1(a) and
Section 8.1(c). 
 (b) If the Closing occurs, Buyer Indemnitees shall be entitled to indemnification in accordance with and
subject to Article X for any Losses incurred as a result of a breach of representation and warranty or covenant identified in the Pre-Signing Supplemental Information. 
 (c) If the Closing occurs, Buyer Indemnitees shall be entitled to indemnification in accordance with and subject to Article X for any Interim
Losses incurred as a result of a breach of representation and warranty or covenant identified in the Post-Signing Supplemental Information solely to the extent such Interim Losses are in excess of Two Million Five Hundred Thousand Dollars
($2,500,000); provided, however, that any Interim Losses in relation to Post-Signing Supplemental Information (whether indemnified or not) (“Post-Signing Supplemental Information Losses”) shall be taken into
account in determining whether the Minimum Amount has been met. 
 7.7 Director and Officer Indemnification. 
 (a) For a period of six (6) years from and after the Closing Date, the Buying Parties, shall cause the charter and other organizational documents of
the Company and the SCT Subsidiaries to contain provisions no less favorable in any manner to the directors and officers of the Company and the SCT Subsidiaries with respect to limitation of liabilities of directors and officers, indemnification and
advancement of expenses than are set forth as of the date of this Agreement in the applicable organizational or charter documents of the Company and the SCT Subsidiaries, which provisions shall not be amended, repealed or otherwise modified in a
manner that would adversely affect the rights thereunder of the directors and officers of the Company and the SCT Subsidiaries. In addition, the Buying Parties shall, and shall cause the Company and the SCT Subsidiaries to, pay any expenses
(including fees and expenses of legal counsel) of any director or officer under this Section 7.7 (including in connection with enforcing the indemnity and other obligations provided for in this Section 7.7) as incurred to the
fullest extent permitted under applicable Law, provided that the Person to whom expenses are advanced provides an undertaking to repay such advances to the extent required by applicable Law. 
 (b) The Company shall purchase a “run-off” or “tail” directors’ and officers’ liability and fiduciary liability insurance
policy to the current policy of the Company with a claims period of at least six (6) years from and after the Closing Date from an insurance carrier with the same or better credit rating as the Company’s current insurance carrier and
having (i) the coverage levels, benefits and other terms and conditions no less favorable as the current policies of the Company with respect to matters existing or occurring at or prior to the Closing Date (including in connection with this
Agreement or the Transactions) and (ii) an annual premium no greater than $12,000. 
 (c) In the event any claim is asserted or made,
any determinations that are required to be made with respect to whether a director’s or an officer’s conduct complies with an 

  

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applicable standard shall be made by independent legal counsel selected by the director or officer in question; provided that nothing in this Section
7.7 shall impair any rights of any current or former director or officers of the Company or any of the SCT Subsidiaries, including pursuant to the respective organizational or charter documents, under applicable Law or otherwise. 
 (d) For a period of six (6) years from and after the Closing Date, the obligations of the Buying Parties, the Company and the SCT Subsidiaries under
this Section 7.7 shall continue in full force and effect following the Closing and shall not be terminated or modified in such a manner as to adversely affect the rights of any director or officer to whom this Section 7.7 applies
unless the affected director or officer shall have consented in writing to such termination or modification (it being expressly agreed that the directors and officers to whom this Section 7.7 applies shall be third party beneficiaries of this
Section 7.7). The provisions of this Section 7.7 are (i) intended to be for the benefit of, and shall be enforceable by, each director and officer, his or her heirs and his or her representatives and (ii) in addition to, and
not in substitution for, any other rights to indemnification or contribution that any such Person may have by contract, Law or otherwise. 
 (e) For a period of six (6) years from and after the Closing Date, if Buyer or any of its successors or assigns (i) consolidates with or merges into any other Person and shall not be the continuing or surviving corporation or
entity in such consolidation or merger or (ii) transfers all or substantially all its properties and assets to any Person, then, and in each case, proper provision shall be made so that the successors and assigns of Buyer, assume, honor and
discharge the obligations set forth in this Section 7.7. 
 7.8 Tax Matters. 
 (a) Seller will be responsible for the preparation and filing of all Tax Returns of the Company and the SCT Subsidiaries for all periods ending on or
prior to the Closing Date. Seller will make all payments required with respect to any such Tax Returns. If Seller utilizes in connection with the filing of any such Tax Return any Tax asset taken into account in determining the Working Capital,
Seller shall immediately reimburse Buyer for such amount. 
 (b) Buyer will be responsible for the preparation and filing of all Tax Returns
of the Company and the SCT Subsidiaries for all periods ending after the Closing Date including for any Tax year beginning before and ending after the Closing Date (“Straddle Period”). Buyer shall provide Seller, at least 30
days prior to the applicable deadline for filing Tax Returns relating to any Straddle Period, a copy of such Tax Returns for Seller’s review and comment. Buyer will make all payments required with respect to any such Tax Return;
provided, however, that Seller will reimburse Buyer for Taxes related to any Straddle Period to the extent (i) any payment by Buyer relates to the operation of the Company or any SCT Subsidiary for any period ending on or before
the Closing Date as determined pursuant to Section 7.8(e) and (ii) such portion exceeds the amount identified for such Taxes and taken into account in determining the Working Capital. 
 (c) Buyer and Seller agree to utilize, or cause their respective affiliates to utilize the alternative procedure set forth in Rev. Proc. 2004-53 with
respect to wage reporting. 
  

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 (d) Without regard to the limitations set forth in Section 10.1(b), Seller agrees to
indemnify and hold harmless Buyer, the Company and the SCT Subsidiaries from and against any Loss that any of Buyer, Company, the SCT Subsidiaries or any of their Affiliates may suffer from, arising out of, relating to, in the nature of, or caused
by: (i) any liability of Seller or its stockholders that becomes a liability of Buyer, the Company, any SCT Subsidiary or their Affiliates under any bulk transfer law of any jurisdiction, under any common law doctrine of de facto merger or
successor liability, or otherwise by operation of Law; (ii) any liability of the Company or any SCT Subsidiary for unpaid Taxes with respect to any Tax year or portion thereof ending on or before the Closing Date (or for any Straddle Period)
identified for such Taxes and to the extent allocable to the portion of such year beginning before and ending on the Closing Date to the extent such Taxes exceed the amount, if any, taken into account in determining the Working Capital;
(iii) any liability of the Company or any SCT Subsidiary for unpaid Taxes of any Person (including Seller and its subsidiaries) under Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Law), as a transferee or
successor, by contract, or otherwise; or (iv) any Tax liability of the SCT Subsidiaries, the Company or the Buying Parties, with respect to payments made under the Management Incentive Compensation Program (including liabilities arising under
Code Sections 280G or 4999). 
 (e) For purposes of this Section 7.8, whenever it is necessary to determine the liability for
Taxes based on the income or receipts of the Company or a SCT Subsidiary for a Straddle Period, the determination of the Taxes of the Company or any SCT Subsidiary for the portion of the Straddle Period ending on and including, and the portion of
the Straddle Period beginning and ending after, the Closing Date shall be determined by assuming that the Straddle Period consisted of two taxable periods, one which ended at the close of the Closing Date and the other which began at the beginning
of the day following the Closing Date and items of income, gain, deduction, loss or credit of the Company for the Straddle Period shall be allocated between such two taxable years or periods on a “closing of the books basis” by assuming
that the books of the Company and any SCT Subsidiary, as the case may be, were closed at the close of the Closing Date; provided, however, that, occurrences or events occurring on the Closing Date but after the Closing that are outside
of the ordinary course of business shall be apportioned to the post-Closing period; provided further, that, exemptions, allowances or deductions that are calculated on an annual basis, such as the deduction for depreciation, shall be
apportioned between such two taxable years or periods on a daily basis. Notwithstanding the previous sentence, any income associated with the Divestiture shall be apportioned to the pre-Closing period. The amount of other Taxes of the Company for a
Straddle Period shall be allocated to the periods before and after the Closing Date pro rata, based on the number of days of the Straddle Period in the period before and ending on the Closing Date, on the one hand, and the number of days in the
Straddle Period in the period after the Closing Date, on the other hand. By way of clarification, this Section 7.8(e) shall govern any and all indemnification rights that Buyer Indemnitees, the Company and any SCT Subsidiary may have
with respect to any Tax matters and none of the Buyer Indemnitees, the Company or any SCT Subsidiary shall have any additional rights to collect for the same matters for a breach of Section 4.13. 
 (f) Seller, the Company and Buyer shall reasonably cooperate, and shall cause their respective Affiliates, officers, employees, agents, auditors and
representatives reasonably to cooperate, in preparing and filing all Tax Returns, including maintaining and making available to each other all records necessary in connection with Taxes and in resolving all disputes and audits 

  

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with respect to all taxable periods relating to Taxes. Buyer recognizes that Seller and its stockholders may need access, from time to time, after the
Closing Date, to certain accounting and tax records and information held by the Company to the extent such records and information pertain to events occurring prior to the Closing Date; therefore, Buyer agrees that from and after the Closing Date,
Buyer shall, and shall cause the Company, the SCT Subsidiaries and their affiliates and successors to (i) retain and maintain such records and information until such time as Seller agrees in writing that such retention and maintenance is no
longer necessary, and (ii) allow Seller and its stockholders (and their agents and representatives) to inspect, review and make copies of such records and information as they may deem necessary or appropriate from time to time. Buyer shall
cause the Company to permit Seller and its stockholders to control any Tax audit for or covering any pre-Closing Tax period, and shall promptly forward and shall cause the Company to promptly forward to Seller and its stockholders all notices or
other communications received with respect to any such Tax audit; provided that Seller shall promptly inform Buyer of any material development in any such Tax Audit and promptly provide Buyer with copies of any correspondence received from or sent
to the relevant taxing authority in connection with any such Tax Audit. 
 (g) Seller shall be entitled to receive any refunds of any Taxes
of the Company and the SCT Subsidiaries for any taxable year or period that ends on or before the Closing Date and, with respect to any taxable year or period beginning before and ending after the Closing Date, the portion of such taxable year
ending on and including the Closing Date, except (i) to the extent that any such refunds are taken into account in determining the Working Capital and (ii) occurs as a result of a carry back of a loss attributable to a post-Closing Tax
period. 
 (h) The Parties acknowledge and agree that any income Tax deductions related to payments under the Management Incentive
Compensation Program, whether paid at Closing or thereafter, shall be claimed by the S Corporation Parent on its income Tax Returns and the Parties shall not take any position inconsistent with this Section 7.8(h). 
 (i) Following the Closing, Buyer shall not amend any Tax Returns for taxable years or periods ending on or before the Closing Date without Seller’s
prior written consent. 
 7.9 No Negotiation. Until such time, if any, as this Agreement is closed or terminated pursuant to
Article XI, Seller will not, and will cause the Company not to, directly or indirectly solicit, initiate, or encourage any inquiries or proposals from, discuss or negotiate with, provide any non-public information to, or consider the merits
of any unsolicited inquiries or proposals from, any Person (other than Buying Parties) relating to any transaction involving the sale of the Business or assets (other than in the ordinary course of business or with respect to the Divestiture) of the
Company or any SCT Subsidiary, or any of the capital stock of the Company or any SCT Subsidiary, or any merger, consolidation, business combination, or similar transaction involving the Company or any SCT Subsidiary (other than with respect to the
Divestiture). 
 7.10 Divestiture. Subject to any transition services or similar agreement entered into between the Company and the
purchaser of Anchor Brake Shoe Company for the provision of administrative services, Seller will cause such purchaser to (a) acknowledge and agree that 

  

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neither the Company nor any SCT Subsidiary nor Buying Parties will have any liability or obligation to indemnify purchaser with respect to Anchor Brake Shoe
Company or its operations (“Anchor Obligations”) and (b) agree to defend any and all Anchor Obligations. In addition, the definitive agreement with respect to the Divestiture shall expressly provide that Buyer is a third
party beneficiary of such agreement with respect to the Anchor Obligations. For a period not to exceed eighteen (18) months from the Closing Date, Buyer agrees to provide administrative or reasonable transition services to the third party buyer
in connection with the Divestiture. 
 ARTICLE VIII 
 CONDITIONS 
 8.1 Conditions to the Obligations of the Buying Parties. The obligations of the Buying
Parties to consummate the Transactions shall be subject to the satisfaction or waiver at or prior to the Closing Date of the following conditions: 
 (a) the representations and warranties of the Company and Seller contained in this Agreement shall be true and correct in all material respects at and as of the date hereof and as of the Closing Date (except for representations and
warranties qualified by materiality which shall be true and correct in all respects) except (i) for changes specifically permitted by this Agreement, (ii) that those representations and warranties which address matters only as of a
particular date shall remain true and correct as of such date and (iii) that those instances in which the failure of the representations and warranties in the aggregate to be true and correct would not reasonably be expected to have a Material
Adverse Effect; 
 (b) the Company and Seller shall have performed and complied in all material respects with all of their respective
obligations required by this Agreement to be performed or complied with at or prior to the Closing Date; 
 (c) since the date of this
Agreement, there shall not have occurred or be existing any fact, event or circumstance that would reasonably be expected to have a Material Adverse Effect; and 
 (d) the Company and Seller shall have delivered to Buyer a certificate executed by an executive officer of the Company on behalf of the Company and an executive officer of Seller on behalf of Seller, respectively,
dated as of the Closing Date, certifying that the conditions specified in paragraphs (a), (b) and (c) immediately above have been satisfied. 
 8.2 Conditions to the Obligations of Seller. The obligations of Seller to consummate the Transactions shall be subject to the satisfaction or waiver at or prior to the Closing Date of the following conditions:

 (a) the representations and warranties of the Buying Parties contained in this Agreement shall be true and correct in all material respects
at and as of the Closing Date with the same force and effect as though made at and as of that time except (i) that those representations and warranties which address matters only as of a particular date shall remain true and correct as of such
date, (ii) that those representations and warranties which by their terms are qualified by 

  

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materiality shall be true in all respects, and (iii) those instances in which the failure of the representations and warranties in the aggregate to be
true and correct would not reasonably be expected to have a Buyer Material Adverse Effect; 
 (b) the Buying Parties shall have performed and
complied with all of their respective obligations required by this Agreement to be performed or complied with at or prior to the Closing Date; and 
 (c) the Buying Parties shall have delivered to Seller a certificate, dated as of the Closing Date, and executed by an executive officer of Buyer on behalf of Buyer, certifying that the conditions specified in paragraphs (a) and
(b) immediately above have been satisfied. 
 8.3 Conditions to Obligations of Buying Parties and Seller. The respective
obligations of the Buying Parties and Seller to consummate the Transactions shall be subject to the satisfaction or waiver at or prior to the Closing Date of the following conditions: 
 (a) No Injunction, Etc. At the Closing Date, there shall be no injunction, restraining order or decree of any nature of any Governmental Authority
that is in effect that prohibits or materially restricts the consummation of the purchase by, or the transfer by Seller to Buyer of the Shares; provided, however, that the benefits of this Section 8.3(a) shall not be available to a
Party whose failure to fulfill its obligations pursuant to Sections 7.2 and 7.4 shall have been the cause of, or shall have resulted in, such injunction, restraining order or decree. 
 (b) Antitrust Approvals. All mandatory (i) waiting periods specified under the HSR Act or similar domestic or foreign Antitrust Laws with
respect to the Transactions shall have elapsed or been terminated and (ii) approvals required under foreign Antitrust Laws with respect to the Transactions have been obtained, all of which are listed on Section 8.3(b) of the Buyer Disclosure
Letter. 
 (c) Divestiture. The Divestiture shall have been completed on or before the Closing Date. 
 8.4 Frustration of Closing Conditions. Neither the Buying Parties nor Seller may rely on the failure of any condition set forth in Section
8.1, Section 8.2 or Section 8.3, as the case may be, to be satisfied if such failure was caused by such Party’s failure to consummate the Transactions, as required by and subject to Section 7.2. 
 ARTICLE IX 
 CLOSING 
 9.1 Closing Date. Unless this Agreement shall have been terminated pursuant to Article XI hereof, the closing of the Transactions (the
“Closing”) shall take place at the offices of McDermott Will & Emery LLP, 227 West Monroe Street, Chicago, Illinois, at 10:00 A.M., Chicago time, three (3) Business Days after all of the conditions to the
Closing set forth in Article VIII hereof have been satisfied or waived, or such other date, time and place as shall be agreed upon by Seller and Buyer (the actual date and time being herein called the “Closing Date”).

  

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 9.2 The Buying Parties’ Deliveries to Seller. At the Closing, the Buying Parties shall
deliver, or caused to be delivered, to Seller the following, in form and substance reasonably acceptable to Seller: 
 (a) a copy of the
certificate of incorporation and bylaws, partnership agreement or analogous organizational document of each Buying Party, as amended, certified by the corporate secretary or assistant secretary of such Buying Party; 
 (b) a copy of the resolutions duly adopted by the Board of Directors of each Buying Party evidencing its authorization of the execution and delivery of
this Agreement and the consummation of the Transactions, certified by the corporate secretary or assistant secretary of such Buying Party; 
 (c) the Closing Payment in immediately available U.S. federal funds; 
 (d) the Escrow Agreement duly executed by the Buying
Parties; and 
 (e) a certificate of an officer of each Buying Party (i) certifying the names and signatures of the officers of such
Buying Party authorized to sign this Agreement and the other agreements relating hereto and (ii) certifying those matters set forth in Section 8.2 above. 
 9.3 The Buying Parties’ Delivery to Escrow Agent. At the Closing, the Buying Parties shall deliver or cause to be delivered, to Escrow Agent, the Escrow Amount in immediately available U.S. federal funds.

 9.4 Seller’s Deliveries. At the Closing, Seller shall deliver, or cause to be delivered, to the Buying Parties the following,
in form and substance reasonably acceptable to the Buying Parties: 
 (a) a copy of the certificate of incorporation and bylaws, partnership
agreement, operating agreement or analogous organizational document of Seller, the Company and each of the SCT Subsidiaries certified by the corporate secretary of such entity; 
 (b) certificates evidencing the Shares properly endorsed or with stock powers executed in blank or otherwise in form suitable for transfer; 

(c) certificates evidencing the Durox Shares properly endorsed or with stock powers executed in blank or otherwise in form suitable for transfer;

 (d) certificates of good standing dated not more than thirty (30) days prior to the Closing Date with respect each of Seller, the
Company and the SCT Subsidiaries (other than Standard Car Truck of Canada, Inc. and SCT Europe Ltd.) from the Secretary of State (or other appropriate governmental official) of the state, province or country of its formation if such certificates or
analogous documents are issued by the appropriate Governmental Authority; 
 (e) a certificate of an officer of the Company
(i) certifying the names and signatures of the officers of the Company authorized to sign this Agreement and any other agreements relating hereto and (ii) certifying those matters set forth in Section 8.1 above; 
  

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 (f) a certificate of an officer of Seller (i) certifying the names and signatures of the officers of
Seller authorized to sign this Agreement and any other agreements relating hereto and (ii) certifying those matters set forth in Section 8.1 above; 
 (g) a copy of the resolutions duly adopted by the Board of Directors of the Company and Seller evidencing its authorization of the execution and delivery of this Agreement and the consummation of the Transactions,
certified by the corporate secretary of the Company and Seller, respectively; 
 (h) noncompetition agreements in substantially the form
attached hereto as Attachment II, from each of H.S. Russell, Patricia Russell and Diana Terlato; 
 (i) non-competition agreements in
substantially the form attached hereto as Attachment III duly executed by each of Rick Mathes, Dan Schroeder, Mark Pace, Mickey Korzeniowski and David Watson; 
 (j) non-competition agreements in substantially the form attached hereto as Attachment IV duly executed by each of David East, Donald Popernick, Wilson Pak, Phillip Lindsell, Andrew Haas and Paul Bumby;

 (k) the Escrow Agreement duly executed by Seller; 
 (l) written resignations of the officers and directors of the Company and the SCT Subsidiaries; 
 (m) payoff
letters and release and termination of all Liens associated with all debt for borrowed money owed to any bank or other financial institution by the Company and the SCT Subsidiaries, each in a form reasonably satisfactory to Buyer; and 
 (n) evidence reasonably satisfactory to Buyer that Seller and/or the S Corporation Parent has withheld and/or reported any Taxes required to be
withheld and/or reported in connection with the Management Incentive Payment. 
 ARTICLE X 
 INDEMNIFICATION 
 10.1 Agreement to
Indemnify. 
 (a) Subject to the limitations provided in this Article X and in Sections 7.6 and 10.11, Seller shall
indemnify and hold harmless the Buying Parties and their respective Affiliates, the Company and any SCT Subsidiary (collectively, the “Buyer Indemnitees”) to the extent set forth in this Article X in respect of any
Losses incurred by Buyer Indemnitees as a result of any (i) inaccuracy or misrepresentation in any representation or warranty of the Company or Seller made herein, (ii) breach of or failure to perform any covenant, agreement or obligation
of the Company or Seller in this Agreement or any agreement, document or certificate delivered hereunder, (iii) Asbestos Claims (but only with respect to Asbestos Losses), (iv) Designated Claim I (but only with respect to Designated
Losses), (v) Designated Claim II (but only with respect to Designated Losses) or (vi) Designated Environmental Conditions (but only with respect to Designated Environmental Losses). 
  

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 (b) Notwithstanding the foregoing paragraph (a): 
 (i) Seller shall not be liable under Section 10.1(a): (A) for any Losses (other than any Designated Losses with respect to Designated Claim
I) in respect of any claim (or group of directly related claims) subject to Section 10.1(a) having an aggregate value of not more than $5,000 (“Qualified Claims”), and (B) until all Losses in respect of all
Qualified Claims exceed $1,500,000 in the aggregate (the “Minimum Amount”), and thereafter Seller shall be liable, subject to the other limitations provided for elsewhere in this Agreement, for Qualified Claims to the extent
in excess of the Minimum Amount. Notwithstanding the foregoing, any Designated Losses with respect to Designated Claim I and any Asbestos Losses with respect to the Asbestos Claims described on Exhibit I shall not be subject to the Minimum
Amount. 
 (ii) Other than with respect to (a) fraud by Seller, (b) Section 7.8(d), and
(c) Section 11.2, the aggregate liability of Seller and its Affiliates for all Losses under this Agreement and any agreement, document or certificate delivered herewith and the Transactions shall not exceed the amount held in the
Escrow Fund (the “Maximum Amount”) and the rights of Buyer Indemnitees to assert claims against the Escrow Fund under this Article X shall be the sole and exclusive remedy of Buyer Indemnitees for any breach of this
Agreement, the Asbestos Claims, Designated Claims, Designated Environmental Conditions or the Transactions contemplated hereby. 
 (iii)
Buyer shall not be entitled to indemnification for any Losses under Section 10.1(a)(i) in the event that Seller can prove by a preponderance of the evidence that Mark Cox, David M. Seitz or Pat Dugan (i) had actual knowledge prior
to the Closing of facts which clearly and obviously constitute a breach by the Company or Seller of a representation or warranty made in this Agreement, (ii) had an actual understanding prior to the Closing that such facts constitute a breach
of a representation or warranty by the Company or Seller under this Agreement, and (iii) fails to disclose such knowledge to the Company and Seller prior to the Closing. 
 (iv) IN NO EVENT SHALL SELLER OR ITS AFFILIATES HAVE ANY LIABILITY OR OBLIGATION TO INDEMNIFY ANY BUYER INDEMNITEE FOR CONSEQUENTIAL DAMAGES, SPECIAL
DAMAGES, SPECULATIVE DAMAGES, INCIDENTAL DAMAGES, INDIRECT DAMAGES, PUNITIVE DAMAGES, DIMINUTION IN VALUE, LOST PROFITS OR SIMILAR ITEMS; PROVIDED, HOWEVER, THAT INCIDENTAL DAMAGES, INDIRECT DAMAGES, PUNITIVE DAMAGES, DIMINUTION IN VALUE, LOST
PROFITS OR SIMILAR ITEMS PAID TO AN UNAFFILIATED THIRD PARTY OF ANY PARTY HERETO WILL BE DEEMED TO BE DIRECT LOSSES UNDER THIS AGREEMENT AND NOT INCLUDED IN THIS EXCEPTION; and 
 (v) Seller shall have no liability to indemnify any Buyer Indemnitee for any Losses (A) related to any liability that is reflected or reserved for
(i) in the calculation of Working Capital or (ii) on the Financial Statements or the Final Closing Balance Sheet, (B) as 

  

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set forth in Section 10.1(b)(iii), (C), except with respect to actions taken by Buying Parties pursuant to this Agreement, to the extent arising
as a result of any action taken or omitted to be taken by any Buying Party or their respective Affiliates (including failure to comply with the Asbestos Protocol or the Designated Environmental Conditions Protocol), or (D) to the extent arising
from a change in Law that becomes effective after the Closing Date. 
 (c) Buying Parties jointly and severally shall indemnify and hold
harmless Seller and its Affiliates (collectively the “Seller Indemnitees” and, together with Buyer Indemnitees, the “Indemnitees”) to the extent set forth in this Article X in respect of any and
all Losses incurred by any Seller Indemnitee: (i) as a result of any inaccuracy or misrepresentation in any representation or warranty of a Buying Party made herein or any breach of or failure to perform any covenant, agreement or obligation of
any Buying Party in this Agreement or any agreement, document or certificate delivered hereunder; or (ii) except as specifically permitted in Article X, as a result of liabilities of the Company and its Subsidiaries, including liabilities
arising from matters, facts and circumstances set forth in the Disclosure Letter to Article IV hereof. IN NO EVENT SHALL THE BUYER OR ITS AFFILIATES HAVE ANY LIABILITY OR OBLIGATION TO INDEMNIFY ANY SELLER INDEMNITEE FOR CONSEQUENTIAL
DAMAGES, SPECIAL DAMAGES, SPECULATIVE DAMAGES, INCIDENTAL DAMAGES, INDIRECT DAMAGES, PUNITIVE DAMAGES, DIMINUTION IN VALUE, LOST PROFITS OR SIMILAR ITEMS; PROVIDED, HOWEVER, THAT INCIDENTAL DAMAGES, INDIRECT DAMAGES, PUNITIVE DAMAGES, DIMINUTION IN
VALUE, LOST PROFITS OR SIMILAR ITEMS PAID TO AN UNAFFILIATED THIRD PARTY OF ANY PARTY HERETO WILL BE DEEMED TO BE DIRECT LOSSES UNDER THIS AGREEMENT AND NOT INCLUDED IN THIS EXCEPTION. 
 10.2 Survival of Representations and Warranties. All representations and warranties shall survive the Closing and expire on the eighteen
(18) month anniversary of the Closing Date; provided, however, that (i) the representations and warranties contained in Sections 4.1 (Corporate Existence), 4.2 (Corporate Authority), 4.4 (Capitalization),
5.1 (Corporate Existence) and 5.2 (Corporate Authority and Ownership) shall survive until the ten (10) year anniversary of the Closing Date, (ii) the representation and warranties contained in Sections 4.13 (Tax
Matters), 4.15 (Employee Benefit Plans) and 4.18 (Environmental Matters) shall survive until the five (5) year anniversary of the Closing Date and (iii) claims of fraud by Seller with respect to its representations and
warranties shall survive for the applicable statute of limitations. The covenants, agreements or obligations of the Parties hereto shall survive the Closing and expire on the first anniversary of the Closing Date, unless a different term is
expressly specified. All claims for indemnification of Designated Environmental Losses shall survive the Closing and expire on the five (5) year anniversary of the Closing Date. All claims for indemnification of Asbestos Losses shall survive
the Closing and expire on the ten (10) year anniversary of the Closing Date. All claims for indemnification of Designated Losses shall survive the Closing and shall expire at such time that the applicable U.S. Proceedings referred to in the
definition of Designated Claims shall have ended conclusively and no right to appeal shall exist with respect to such U.S. Proceeding or the Complaint. Any cause of action for any inaccuracy, misrepresentation, failure or breach of a representation
or warranty, covenant, agreement or obligation (including any indemnification obligation for any Asbestos Loss, Designated Environmental Loss or Designated Loss) contained herein shall expire and terminate unless the Party claiming that such
inaccuracy, misrepresentation, failure, breach or obligation occurred 

  

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delivers to the other Party written notice and a reasonably detailed explanation of the alleged inaccuracy, misrepresentation, failure, breach or obligation
on or before 5:00 P.M., Chicago time, on the date on which such representation or warranty, covenant, agreement or obligation expires pursuant to this Section 10.2. 
 10.3 Notice of Claims for Indemnification. If any Indemnitee shall believe that such Indemnitee is entitled to indemnification pursuant to
Section 10.1 in respect of any Losses, such Indemnitee shall give the appropriate indemnifying Party (the “Indemnifying Party”) written notice within thirty (30) days of its becoming aware thereof (but prior
to the expiration of the survival period specified in Section 10.2 for the relevant representation, warranty, covenant, agreement, or obligation), which notice shall specify in reasonably sufficient detail the facts alleged to give rise
to a claim for indemnification and the amount the Indemnitee seeks hereunder from the Indemnifying Party, together with such information as may be necessary for the Indemnifying Party to determine whether the limitations in Section
10.1(b)(i), have been satisfied; provided, however, the failure to give such notice shall not release the Indemnifying Party from its obligations under this Article X except to the extent the Indemnifying Party has been
prejudiced by the failure. If the Indemnifying Party contests the assertion of a claim, the Parties covenant and agree to use their commercially reasonable efforts to resolve their dispute with respect to such claim. 
 10.4 Defense of Claims. Subject to the last sentence of this Section 10.4, in connection with any claim for which indemnification has been
sought under this Article X resulting from or arising out of any claim or Proceeding against an Indemnitee by a Person that is not a Party hereto (a “Third Party Claim”), the Indemnifying Party may assume the defense
of any such Third Party Claim (unless such Indemnitee elects not to seek indemnity hereunder for such Third Party Claim), upon written notice to the relevant Indemnitee. If the Indemnifying Parties shall have assumed the defense of any Third Party
Claim in accordance with this Section 10.4, the Indemnifying Parties shall be authorized to settle, or consent to the entry of any judgment arising from, any such Third Party Claim, without the prior written consent of such Indemnitee;
provided, however, that the Indemnifying Parties shall pay or cause to be paid all amounts arising out of such settlement or judgment concurrently with the effectiveness thereof (less any unapplied portion of the Minimum Amount and up
to the Maximum Amount); provided, further, that the Indemnifying Parties shall not be authorized to encumber any of the assets of any Indemnitee or to agree to any restriction that would apply to any Indemnitee or to its conduct of
business; and provided, further, that a condition to any such settlement shall be a complete release of such Indemnitee and its Affiliates, officers, employees, consultants and agents with respect to such Third Party Claim. Each
Indemnitee shall be entitled to participate in (but not control) the defense of any such Third Party Claim, with its own counsel and at its own expense. Each Indemnitee shall, and shall cause each of its Affiliates, officers, employees, consultants
and agents to, cooperate fully with the Indemnifying Parties in the defense of any Third Party Claim being defended by the Indemnifying Parties pursuant to this Section 10.4. The assumption of any defense hereunder by an Indemnifying Party
shall not be deemed an admission of responsibility for the Third Party Claim. If the Indemnifying Parties do not assume the defense of any Third Party Claim in accordance with the terms of this Section 10.4, the Indemnitee must defend
against such Third Party Claim. The Indemnitee shall not pay, or permit to be paid, any part of a settlement or a judgment arising from a Third Party Claim unless the Indemnifying Parties consent in writing to such payment or unless a final judgment
from which no appeal may 

  

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be taken by or on behalf of the Indemnifying Party is entered against the Indemnitee for such Third Party Claim; provided, however,
(a) that the Indemnifying Party shall respond no later than the earlier of (i) ten (10) Business Days or (ii) the response deadline required by the terms of such settlement offer (provided the Indemnifying Party is given
reasonable advance notice of the deadline) with respect to its consent to such settlement or judgment and (b) if Seller is the Indemnifying Party such consent (or withholding of consent) shall be given by the Seller Representative. If the
Indemnitee assumes the defense of any Third Party Claim in accordance with this Section 10.4 and proposes to settle such Third Party Claim prior to a final judgment thereon or to forego any appeal with respect thereto, then the
Indemnitee shall give the Indemnifying Party prompt written notice thereof and the Indemnifying Party shall have the right to participate in the settlement negotiations or assume or reassume the defense of such Third Party Claim. Any Asbestos Claims
described on Exhibit I shall be handled in accordance with the procedures described in Exhibit I. 
 10.5 Settlement or
Compromise. Any settlement or compromise made or caused to be made by the Indemnitee (unless the Indemnifying Party has the exclusive right to settle or compromise under Section 10.4) or the Indemnifying Party, as the case may be, of
any such claim, suit, action or proceeding of the kind referred to in Section 10.4 shall also be binding upon the Indemnifying Party or the Indemnitee, as the case may be, in the same manner as if a final judgment or decree had been
entered by a court of competent jurisdiction in the amount of such settlement or compromise; provided, that (i) no obligation, restriction or Loss shall be imposed on the Indemnitee as a result of such settlement or compromise without its prior
written consent, which consent shall not be unreasonably withheld, and (ii) the Indemnitee will not compromise or settle any claim, suit, action or proceeding without the prior written consent of the Indemnifying Party, which consent shall not
be unreasonably withheld; provided, however, (a) that the Indemnifying Party shall respond no later than the earlier of (i) ten (10) Business Days or (ii) the response deadline required by the terms of such settlement offer
(provided the Indemnifying Party is given reasonable advance notice of the deadline) with respect to its consent to such settlement or judgment and (b) if Seller is the Indemnifying Party, such consent (or withholding of consent) shall be given
by the Seller Representative. Any Asbestos Claims described on Exhibit I shall be handled in accordance with the procedures described in Exhibit I. 
 10.6 Subrogation and Mitigation. To the extent that any Indemnifying Party discharges any claim for indemnification hereunder, such Indemnifying Party shall be subrogated to all rights of any Indemnitee against
third parties, including all rights relating to claims under any insurance, contracts, common law or otherwise. Such Indemnitee (and its Affiliates) and Indemnifying Party will execute upon request all instruments reasonably necessary to evidence or
further protect such subrogation rights. The Indemnitee shall take, and shall cause their respective Affiliates to take, all reasonable steps to mitigate and otherwise minimize their Losses to the maximum extent reasonably possible upon and after
becoming aware of any event which would reasonably be expected to give rise to any Losses. 
 10.7 Environmental Actions. 

(a) With respect to the Designated Environmental Conditions, Buying Parties shall not, directly or indirectly, initiate any communication with any
Governmental Authority authorized to enforce any Environmental Laws or any other Person unless (i) Buying Parties are 

  

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required to do so under applicable Environmental Law and such communication is limited to those issues addressed in the applicable Environmental Laws or
(ii) approved by Seller (in Seller’s reasonable discretion) after Seller has received reasonable prior notice of Buying Parties’ intended communications. Buying Parties shall provide Seller with reasonable prior notice of actions or
communications to or from any Governmental Authority or other Person that are reasonably likely to result in any Designated Environmental Losses, and shall provide full access to information at Buyer’s disposal regarding such claims. Nothing in
this Agreement will be construed as an admission by any Party of any Losses under the Environmental Laws. None of the Buying Parties or their respective Affiliates, nor any of their consultants, contractors, agents or representatives shall perform
or undertake after the Closing Date any investigation or sampling of any Hazardous Substance or contaminants in, on, at, upon or under any surface soil, subsurface soil, surface water, groundwater, building material or any other media of any form or
type in, at, upon, under or from the Real Property (collectively “Media”), except to the extent that Buyer, in its sole discretion, concludes that an investigation and/or sampling of any Media is (a) reasonably required
in connection with a future sale of the Real Property by Buyer to a bona fide third party purchaser; (b) reasonably required in connection with a bona fide third party financing transaction in which Buyer or any of its Affiliates is the
borrowing entity; (c) warranted by any future construction or development on the Real Property by Buyer (and then only to the extent related to the area of construction or development); (d) required by Law; or (e) reasonably required
in connection with a response to a bona fide Third Party Claim asserting liability for the Release of Hazardous Substances in, at, upon, under or from the Real Property. 
 (b) To the extent that any environmental, health and safety compliance equipment costs and corrective action activity costs related to the Designated Environmental Conditions are incurred (“Environmental
Work”): 
 (i) The Environmental Work shall be performed in a manner employing the most cost effective reasonable means available
that are acceptable to the applicable Governmental Authority, including, for example, the development of site specific clean-up standards, risk assessment, utilization of performance standards (e.g., capping) and/or institutional controls. Except as
may be required by applicable Law, all Environmental Work shall take into account and be based on the industrial use of the affected Real Property. 
 (ii) The Environmental Work shall include only the equipment and activities that are legally required to bring the Company and affected Real Property into compliance with Environmental Laws for the Business as it was
conducted as of the Closing Date. 
 (iii) Management of the Buyer shall control and direct such environmental consultants and contractors
in the performance of the Environmental Work. 
 (c) If either Seller or Buyer disagrees as to whether any particular cost or activity is
included within the scope of the Environmental Work, as to whether any particular non-compliance issue or release of Hazardous Substances existed pre-Closing, or as to whether any cost or activity is required by Designated Environmental Conditions
or satisfies the conditions of subparts (i) or (ii) above, then either Party can elect to have the issue decided by an independent third party expert mutually agreed to by the Parties. If the Parties cannot mutually agree on the selection
and retention of a third party environmental expert, then either Party can elect to have the issue decided in accordance with subparagraph (e) below. 
  

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 (d) The Escrow Fund shall be the sole source for the satisfaction of all Designated Environmental Losses.
Buyer Indemnitee’s sole recourse against Seller related to environmental matters and environmental claims or liabilities, including all Designated Environmental Losses arising from or relating in any way to any Designated Environmental
Conditions, shall be the Escrow Fund and Seller shall have no obligation to Buyer for any environmental matters and environmental claims or liabilities, including all Designated Environmental Losses arising from or relating in any way to any
Designated Environmental Conditions, beyond the Escrow Fund. 
 (e) In the event of a disagreement between the Parties on who the expert
should be, the Parties will select a nationally recognized third party expert with no material relationship with any Party by lot. The decision of the third party expert shall be final and binding upon the Parties. The fees and expenses of such
third party expert retained pursuant to this Section 10.7 as a result of any dispute related to the Environmental Work shall be equitably allocated by such third party expert based on the accuracy of the Parties’ positions relative to the
final determination by such third party expert. 
 10.8 Indemnification Calculations. The amount of any Losses for which
indemnification is provided under this Article X shall be computed net of any insurance proceeds or other recoveries actually received by any Indemnitee in connection with such Losses and net of any Tax benefits arising by reason of any such
Loss. Each Indemnitee shall exercise commercially reasonable efforts to obtain such proceeds, benefits and recoveries. If any such proceeds, benefits or recoveries are received by an Indemnitee (or any of its Affiliates) with respect to any Losses
after an Indemnifying Party has made a payment to the Indemnitee with respect thereto, the Indemnitee (or such Affiliate) shall promptly pay to the Indemnifying Party the amount of such proceeds, benefits or recoveries (up to the amount of the
Indemnifying Party’s payment). 
 10.9 Tax Treatment. The Parties agree that any indemnification payments made pursuant to this
Agreement shall be treated for Tax purposes, as between Buyer and Seller, as an adjustment to the Purchase Price, unless otherwise required by applicable Law or Governmental Authority interpretations thereof. 
 10.10 Escrow Amount. 
 (a) On the
Closing Date, Seller, Buyer and Escrow Agent shall enter into an Escrow Agreement providing for the formation of an escrow fund. In order to secure Seller’s indemnity obligations to Buyer under this Agreement, the Escrow Amount shall be
deposited by wire transfer into an account designated by Escrow Agent in accordance with Section 2.3 to be held in escrow pursuant to the terms of the Escrow Agreement (the amount held in escrow as reduced from time to time pursuant to
this Section 10.10 and this Article X, is hereinafter referred to as the “Escrow Fund”). 
  

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 (b) Pursuant to the Escrow Agreement and subject to Section 10.11, the Escrow Amount shall be
released from the Escrow Fund as follows: 
 (i) On the eighteen (18) month anniversary of the Closing Date (the “First
Distribution Date”), Escrow Agent shall distribute to Seller an amount from the Escrow Fund equal to Fifteen Million Dollars ($15,000,000) less the sum of (x) any portion of the Escrow Fund previously distributed to Buyer on
or prior to the First Distribution Date, (y) any amounts to satisfy a claim for indemnification made by Buyer under Section 10.1(a)(i), (ii), (iv) or (v) prior to the First Distribution Date but which remains pending as of
the First Distribution Date (to the extent such amount is reasonably estimable) and (z) any pending Asbestos Claims described on Exhibit I (to the extent such amount is reasonably estimable). If on the First Distribution Date, there are
Asbestos Claims (other than any Asbestos Claims described on Exhibit I) that all of the Company’s insurers are unwilling or unable to fully insure or indemnify (as opposed to providing coverage with a reservation of rights) after proper
notice of such claim has been made to the insurers, then in that event only $7,500,000 as adjusted pursuant to subsections (x), (y) and (z) shall be distributed from the Escrow Fund by Escrow Agent to Seller on the First Distribution Date;
provided, however, that in the event Seller is able to obtain a final, non-appealable judgment against the Company’s insurers awarding Seller 100% of the damages associated with such Asbestos Claims and the Buyer Indemnitees have
reasonable assurance that the Company’s insurers (either jointly or severally) are liable for coverage of such Asbestos Claims and are financially able to honor any liability with respect to such Asbestos Claims, then, upon Seller providing
Buyer with satisfactory evidence establishing the foregoing, the Escrow Agent shall distribute to Seller an additional amount from the Escrow Fund equal to Seven Million Five Hundred Thousand Dollars ($7,500,000). 
 (ii) On the fifth (5th) anniversary of the Closing Date (the “Second Distribution Date”), Escrow Agent shall distribute to
Seller an amount from the Escrow Funds equal to (i) Five Million Dollars ($5,000,000) or (ii) if less than Five Million Dollars ($5,000,000) is then remaining in the Escrow Fund, all remaining amounts from the Escrow Fund, if on the Second
Distribution Date Asbestos Losses paid as of the Second Distribution Date are equal to or less than One Million Dollars ($1,000,000) less (x) any amounts to satisfy a claim for indemnification made by Buyer under
Section 10.1(a)(i), (ii), (iv) or (v) prior to the Second Distribution Date but which remains pending as of the Second Distribution Date (to the extent such amount is reasonably estimable) and (y) any pending Asbestos
Claims described on Exhibit I (to the extent such amount is reasonably estimable). If on the Second Distribution Date, (i) Asbestos Losses (other than any Asbestos Claims described on Exhibit I) paid as of the Second Distribution
Date are greater than One Million Dollars ($1,000,000) or (ii) there are Asbestos Claims that all of the Company’s insurers are unwilling or unable to fully insure or indemnify (as opposed to providing coverage with a reservation of
rights) after proper notice of such claim has been made to the insurers, then no distributions from the Escrow Fund shall be made by Escrow Agent to Seller on the Second Distribution Date; provided, however, that in the event Seller is
able to obtain a final, non-appealable judgment against the Company’s insurers awarding Seller 100% of the damages associated with such Asbestos Claims and the Buyer Indemnitees have reasonable assurance that the Company’s insurers (either
jointly or severally) are liable for coverage of such Asbestos Claims and are financially able to honor any liability with respect to such Asbestos Claims, then, upon Seller providing Buyer with satisfactory evidence establishing the foregoing, the
Escrow Agent shall distribute to Seller that portion of the Escrow Fund retained with respect to the Asbestos Claims. 
  

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 (iii) On the tenth (10th) anniversary of the Closing Date (the “Final Distribution
Date”), Escrow Agent shall distribute to Seller all remaining amounts from the Escrow Fund less any amounts reasonably necessary to satisfy a claim for indemnification made by Buyer under Section 10.1(a)(i) prior to
the Final Distribution Date, but which remain pending as of the Final Distribution Date. 
 (c) In the event of a disagreement between the
Parties on the reasonable estimate of any amounts to satisfy a claim for indemnification made by Buyer under Section 10.1(a)(i), (ii), (iv) or (v), or with respect to the Asbestos Claims described in Exhibit I, prior to the
First Distribution Date or the Second Distribution Date but which remains pending as of the First Distribution Date or the Second Distribution Date, as the case may be, the Parties will select a third party expert with no material relationship with
any Party by lot to determine the reasonable estimated amount of such pending claim within thirty (30) days following the Parties’ submission of the claim to such expert. The decision of the third party expert shall be final and binding
upon the Parties and the estimated amount determined by the third party expert shall remain in the Escrow Fund pending resolution of the indemnification claim in accordance with Article X. The fees and expenses of such third party expert
retained pursuant to this Section 10.10(c) shall be equitably allocated by such third party expert based on the accuracy of the Parties’ positions relative to the final determination of the estimated amount by such third party expert.

 10.11 Asbestos Losses, Designated Losses and Designated Environmental Losses. 
 (a) Notwithstanding anything in this Article X to the contrary and subject to Section 10.1, Buyer Indemnitees shall only be entitled to
indemnification for Asbestos Claims to the extent any of the Company, any SCT Subsidiary or Buying Parties have actually paid Asbestos Losses to unaffiliated third parties prior to the First Distribution Date, the Second Distribution Date or the
Final Distribution Date, as applicable. More specifically, and for the avoidance of doubt, to the extent there are any pending Asbestos Claims as of the First Distribution Date, the Second Distribution Date or the Final Distribution Date pursuant to
which the Company, any SCT Subsidiary or Buying Parties have not paid any Asbestos Losses prior to the First Distribution Date, the Second Distribution Date or the Final Distribution Date, as applicable, Buyer Indemnitees shall not be entitled to
retain any portion of the Escrow Fund with respect to such Asbestos Claims. The Buying Parties shall, and shall cause the Company and the SCT Subsidiaries to, comply with the Asbestos Protocol and with the protocol described on Exhibit I as
of and from the Closing Date. 
 (b) Notwithstanding anything in Article X to the contrary and subject to Section 10.1, Buyer
Indemnitees shall only be entitled to indemnification for Designated Environmental Conditions to the extent any of the Company, any SCT Subsidiary or Buying Parties have actually paid Designated Environmental Losses to unaffiliated third parties
prior to the Second Distribution Date. In addition, and for the avoidance of doubt, to the extent there are any pending Third Party Claims with respect to Designated Environmental Conditions as of the First Distribution Date or Second Distribution
Date, the Buyer Indemnitees shall be entitled to 

  

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retain that portion of the Escrow Fund with respect to such pending Third Party Claims relating to the Designated Environmental Conditions equal to a
reasonable estimate of the costs related to remediation based on a report or recommendation prepared by a nationally recognized third party expert selected in accordance with Section 10.7(e). The Buying Parties shall, and shall cause the
Company and the SCT Subsidiaries, to comply with the Designated Environmental Conditions Protocol as of and from the Closing Date. 
 10.12
Exclusive Remedy. Except as set forth in Section 13.9 or as specifically provided in this Agreement and except for fraud, the indemnification provisions in Section 7.8 and in Article X of this Agreement shall
provide the sole and exclusive remedy of the Buying Parties with respect to any and all Losses of any kind or nature whatever incurred because of or resulting from or arising out of this Agreement, any agreement, document or certificate delivered
herewith or therewith, the Transactions, the Business, the Company and the SCT Subsidiaries and any of their assets and liabilities. 
 ARTICLE XI 
 TERMINATION 
 11.1 Termination Events. Without prejudice to other remedies which may be available to the Parties by Law or this Agreement, this Agreement may be terminated and the Transactions may be abandoned prior to Closing: 
 (a) by mutual written consent of the Parties hereto; 
 (b) by Buyer or Seller, by written notice to the other if: 
 (i) the Closing shall not have been consummated on or before the
Termination Date, unless extended by written agreement of the Parties hereto; provided, however, that the right to terminate this Agreement under this Section 11.1(b) shall not be available to any Party whose failure to perform
or comply with any of its obligations under this Agreement shall have been the cause of, or shall have resulted in, the failure of the Closing to occur by such date; or 
 (ii) any Governmental Authority shall have enacted, promulgated, issued, entered or enforced (A) any Law prohibiting the Transactions or making them illegal, or (B) any injunction, judgment, order or ruling
or taking any other action, in each case, permanently enjoining, restraining or prohibiting the Transactions, which shall have become final and nonappealable. 
 (c) by Buyer: 
 (i) if the condition set forth in Sections 8.1 shall not have been satisfied on or
prior to the Termination Date; or 
  

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 (ii) if all of the conditions set forth in Article VIII shall have been satisfied and Seller
shall not have made all of the deliveries required by Section 9.4 on or before ten (10) days following the date designated for Closing pursuant to Section 9.1; or 
 (d) by Seller: 
 (i) if the condition set
forth in Section 8.2 shall not have been satisfied on or prior to the Termination Date; or 
 (ii) if all of the conditions set forth
in Article VIII shall have been satisfied and (i) the Buying Parties shall not have made all of the deliveries required by Section 9.2 or Section 9.3 on or before ten (10) days following the date designated for
Closing pursuant to Section 9.1. 
 11.2 Effect of Termination. In the event of any termination of the Agreement as provided in
Section 11.1 above, then all further obligations of the Parties under this Agreement shall terminate without further liability on the part of any Party to the others, other than (a) with respect to the obligations of the Buying
Parties and Seller under the Confidentiality Letter and Sections 7.3, 11.2, 12.1, 12.2, and 13.3 of this Agreement, (b) liability for any intentional or fraudulent misrepresentation, breach or default in
connection with any warranty, representation, covenant or obligation given, occurring or arising pursuant to this Agreement, including failing to consummate the transactions contemplated hereby and (c) specific performance as contemplated in
Section 13.9. Nothing herein nor any termination hereof shall limit the right of the non-breaching Party to seek specific performance and all other remedies available at Law or equity. A Party’s right to terminate this Agreement is
in addition to, and not in lieu of, any other legal or equitable rights or remedies which such Party may have. 
 ARTICLE XII 
 GUARANTEE 
 12.1 Buyer Guarantee. In
the event that Buyer designates a Designated Buyer, Buyer hereby unconditionally and absolutely guarantees to Seller the prompt and full payment and performance of all covenants, agreements and other obligations of Buyer hereunder, including
Buyer’s indemnification obligations pursuant to Article X. The foregoing guarantee shall be direct, absolute, irrevocable and unconditional and shall not be impaired irrespective of any modification, release, supplement, extension or
other change in the terms of all or any of the obligations of Buyer hereunder, including payment of the Purchase Price or for any other reason whatsoever. Buyer hereby waives any requirement of promptness, diligence or notice with respect to the
foregoing guaranty and any requirement that Seller exhaust any right or take any action against Buyer in respect of any of their obligations hereunder. The Parties hereto agree that any third party beneficiaries to this Agreement shall be a third
party beneficiary of, shall be entitled to rely on and shall be entitled to enforce the provisions of this Section 12.1. 
  

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 12.2 Joint and Several Obligations. All obligations of the Buying Parties and each of them under
this Agreement and in connection with the Transactions shall be joint and several, regardless of whether specifically stated in each instance. 
 ARTICLE XIII 
 MISCELLANEOUS AGREEMENTS OF THE PARTIES 
 13.1 Notices. All notices and other communications provided for hereunder shall be in writing and deemed given if (i) delivered personally,
(ii) sent by facsimile, with conforming copy sent as set forth in clause (iii), or (iii) sent by Federal Express, DHL, UPS or overnight courier (providing proof of delivery) to the Parties, in each case at the following addresses:

  

			
	If to any Buying Party:
	
	 Westinghouse Air Brake Technologies Corporation
 1001 Air Brake Avenue
 Wilmerding, PA 15148
 Attention: Legal Department
 Fax: 412-825-1305

	
	with a copy to:
	
	 Reed Smith LLP
 435 Sixth
Avenue
 Pittsburgh, PA 15219
 Attention: David L.
DeNinno
 Fax: 412-288-3063

	
	If to Seller prior to Closing:
	
	 Robclif, Inc.
 865 Busse
Highway
 Park Ridge, IL 60068
 Attention: Richard A.
Mathes
 Fax: 847-692-7404

	
	with a copy to:
	
	 McDermott Will & Emery LLP
 227 West Monroe Street
 Chicago, IL 60606

	Attention:	 	 Michael R. Fayhee, P.C.
 John P.
Tamisiea

	Fax.: 312-984-7700

  

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	If to Seller or Seller Representative following Closing:
	
	 Robclif, Inc.
 74 Pondsbury
Road
 Mount Pleasant, SC 29464
 Attention: H.S.
Russell
 Fax: 843-216-3986

	
	with a copy to:
	
	 McDermott Will & Emery LLP
 227 West Monroe Street
 Chicago, IL 60606

	Attention:	 	Michael R. Fayhee, P.C.
		 	John P. Tamisiea
	Fax.: 312-984-7700

 Unless otherwise specified herein, such notices or other communications shall be deemed effective, (a) on the
date received, if personally delivered or sent by facsimile during normal business hours, or (b) if delivered by overnight courier, on the date delivered as established by return receipt or courier service confirmation or the date on which the
return receipt or courier service confirms that acceptance of delivery was returned by the addressee. Each of the Parties hereto shall be entitled to specify a different address by giving notice as aforesaid to each of the other Parties hereto.

 13.2 Transfer Taxes. Buyer and Seller shall each be responsible for the payment of fifty percent (50%) of any sales and
transfer Taxes that may be payable with respect to the consummation of the Transactions and, to the extent any exemptions from such Taxes are available, Buyer and Seller shall cooperate to prepare any certificates or other documents necessary to
claim such exemptions. 
 13.3 Expenses. Subject to Section 13.2, Seller, Seller on behalf of the Company and the Buying
Parties shall each pay their respective expenses (such as legal, investment banker and accounting fees) incurred in connection with the origination, negotiation, execution and performance of this Agreement, except that the Buying Parties shall be
responsible for the payment of all filing fees under the HSR Act and any other Antitrust Laws. 
 13.4 Non-Assignability. This
Agreement shall inure to the benefit of and be binding on the Parties hereto and their respective successors and permitted assigns. This Agreement shall not be assigned by operation of Law or otherwise by any Party hereto without the express prior
written consent of the other Parties, and any attempted assignment, without such consents, shall be null and void. Notwithstanding the foregoing and subject to Article XII, Buyer may assign its rights under this Agreement to a Designated Buyer
without the prior consent of Seller. 
 13.5 Amendment; Waiver. This Agreement may be amended, supplemented or otherwise modified only
by a written instrument executed by the Parties hereto. No waiver by any Party of any of the provisions hereof shall be effective unless explicitly set forth in writing 

  

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and executed by the Party so waiving. The waiver by any Party hereto of any condition to this Agreement or breach of any provision of this Agreement shall
not operate or be construed as a waiver of any other condition of this Agreement or subsequent breach. 
 13.6 Third Parties. Except
for the rights provided in Sections 7.5 and 7.7 and Article XII, this Agreement does not create any rights, claims or benefits inuring to any Person that is not a Party hereto nor create or establish any third party beneficiary
hereto. 
 13.7 Currency. All references to currency, monetary values and dollars set forth herein shall mean U.S. dollars and all
payments hereunder shall be made in U.S. dollars. 
 13.8 Governing Law; Submission to Jurisdiction; Waivers. This Agreement and each
other document delivered pursuant to this Agreement shall be determined under, governed by, and construed in accordance with, the internal laws of the State of Illinois without regard to principles of conflicts of laws. Each of the Parties agrees
that if any dispute is not resolved by the Parties, it shall be resolved only in the courts of the State of Illinois sitting in Cook County or the United States District Court for the Northern District of Illinois and the appellate courts having
jurisdiction of appeals in such courts (collectively, the “Proper Courts”). In that context, and without limiting the generality of the foregoing, each of the Parties irrevocably and unconditionally (a) submits for
itself and its property in any action relating to this Agreement or any document delivered pursuant to this Agreement or for recognition and enforcement of any judgment in respect thereof, to the exclusive jurisdiction of the courts, and agrees that
all claims in respect of any such action shall be heard and determined in such Illinois state court or, to the extent permitted by Law, in such federal court; (b) consents that any such action may and shall be brought in such Proper Court and
waives any objection that it may now or thereafter have to the venue or jurisdiction of any such action in any such Proper Court or that such action was brought in an inconvenient court and agrees not to plead or claim the same; (c) waives all
right to trial by jury in any action (whether based on contract, tort or otherwise) arising out of or relating to this Agreement or any document delivered pursuant to this Agreement, or its performance under or the enforcement of this Agreement or
any document delivered pursuant to this Agreement; (d) agrees that service of process in any such action may be effected by mailing a copy of such process by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Party at its address as provided in Section 13.1; and (e) agrees that nothing in this Agreement or any document delivered pursuant to this Agreement shall affect the right to effect service of process in any other
manner permitted by the Laws of the State of Illinois. 
 13.9 Specific Performance. The Parties agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. The Parties hereto agree and acknowledge that, in the event of a breach of any provision of this
Agreement, the aggrieved Party may be without an adequate remedy at law. The Parties therefore agree that in the event of a breach of any provision of this Agreement the aggrieved party may elect to institute and prosecute proceedings exclusively in
the Proper Court to obtain specific performance or to enjoin the continuing breach of such provision, as well as to obtain damages for breach of this Agreement and to obtain reasonable attorneys’ fees, without bond or other security being
required. By seeking or obtaining any such relief, the aggrieved Party will not be precluded from seeking or obtaining any other relief to which it may be entitled at Law or in equity. 
  

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 13.10 Entire Agreement. This Agreement, the Disclosure Letter hereto and Exhibits, Schedules and
agreements referred to herein (including the Confidentiality Letter) set forth the entire understanding of the Parties hereto as to matters not expressly excepted or excluded herefrom. 
 13.11 Interpretation and Rules of Construction. In this Agreement, except to the extent otherwise provided or that the context otherwise requires:

 (a) when a reference is made in this Agreement to an Article, Section, Exhibit or Schedule, such reference is to an Article or Section of,
or an Exhibit or Schedule to, this Agreement unless otherwise indicated; 
 (b) the table of contents and headings for this Agreement are for
reference purposes only, are for convenience only and not deemed to be a part of this Agreement and do not affect in any way the meaning or interpretation of this Agreement; 
 (c) whenever the words “include,” “includes” or “including” are used in this Agreement, they are deemed to be followed by
the words “without limitation”; 
 (d) the words “hereof,” “herein” and “hereunder” and words of
similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement; 
 (e)
all terms defined in this Agreement have the defined meanings when used in any certificate or other document made or delivered pursuant hereto, unless otherwise defined therein; 
 (f) the definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms; 
 (g) reference to any agreement (including this Agreement), document, schedule, exhibit or instrument means such agreement, document, schedule, exhibit or
instrument as amended or modified and in effect from time to time in accordance with the terms thereof, and, if applicable, the terms hereof; 
 (h) references to a Person are also to its permitted successors and assigns; 
 (i) reference to a Person in a particular capacity
excludes such Person in any other capacity or individually; and 
 (j) the use of “or” is not intended to be exclusive unless
expressly indicated otherwise. 
 13.12 Severability. If any provision of this Agreement shall be declared by any court of competent
jurisdiction to be illegal, void or unenforceable, all other provisions of this Agreement 

  

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shall not be affected and shall remain in full force and effect. Upon such determination that any term or other provision is invalid, illegal or incapable of
being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible to the fullest extent permitted by applicable Law in an acceptable manner to the end
that the Transactions are fulfilled to the fullest extent possible. With respect to any provision of this Agreement finally determined by a court of competent jurisdiction to be unenforceable, the Buying Parties and Seller hereby agree that such
court shall have jurisdiction to reform such provision so that it is enforceable to the maximum extent permitted by Law, and the Parties agree to abide by such court’s determination. If any such provision of this Agreement cannot be reformed,
such provision shall be deemed to be severed from this Agreement, but every other provision of this Agreement shall remain in full force and effect. 
 13.13 Disclosure Letter. Any information disclosed pursuant to a particular section of the Disclosure Letter hereto shall be deemed to be disclosed with respect to any other section of the Disclosure Letter to
which it is reasonably apparent that the information is applicable to such section of the Disclosure Letter and corresponding representation and warranty, notwithstanding the omission of a cross-reference thereto. Neither the specification of any
dollar amount or any item or matter in any provision of this Agreement or any agreement, document or instrument entered into or delivered in connection with the Transactions (the “Ancillary Agreements”) nor the inclusion of
any specific item or matter in the Disclosure Letter or any schedule to any Ancillary Agreement is intended to imply that such amount, or higher or lower amounts, or the item or matter so specified or included, or other items or matters, are or are
not material, shall not be employed as a point of reference in determining any standard of materiality under this Agreement and no Party shall use the fact of the specification of any such amount or the specification or inclusion of any such item or
matter in any dispute or controversy between the Parties as to whether any item or matter is or is not material for purposes of this Agreement or any Ancillary Agreement. Neither the specification of any item or matter in any provision of this
Agreement or any Ancillary Agreement nor the inclusion of any specific item or matter in the Disclosure Letter or any schedule to any Ancillary Agreement is intended to imply that such item or matter, or other items or matters, are or are not in the
ordinary course of business and no Party shall use the fact or the specification or the inclusion of any such item or matter in any dispute or controversy between the Parties as to whether any item or matter is or is not in the ordinary course of
business for purposes of this Agreement or any Ancillary Agreement. 
 13.14 Language. Seller and the Buying Parties agree that the
language used in this Agreement is the language chosen by the Parties to express their mutual intent, and that no rule of strict construction is to be applied against Seller or the Buying Parties. Each of Seller and the Buying Parties and their
respective counsel have reviewed and negotiated the terms of this Agreement. 
 13.15 Counterparts. This Agreement may be executed in
any number of counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same instrument. 
 *    *    * 
  

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 IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the date first above
written. 
  

			
	WESTINGHOUSE AIR BRAKE TECHNOLOGIES CORPORATION
		
	By:	 	 /s/ Alvaro Garcia-Tunon

	Name:	 	Alvaro Garcia-Tunon
	Title:	 	Senior Vice President, Chief Financial Officer and Secretary
	
	STANDARD CAR TRUCK COMPANY
		
	By:	 	 /s/ Richard A. Mathes

	Name:	 	Richard A. Mathes
	Title:	 	President
	
	ROBCLIF, INC.
		
	By:	 	 /s/ H.S. Russell

	Name:	 	H.S. Russell
	Title:	 	Vice President

 Exhibit/Schedule List for SCT Stock Purchase Agreement* 
 Exhibits 
 Exhibit A 
 Exhibit B 
 Exhibit C 
 Exhibit D 
 Exhibit E 
 Exhibit F 
 Exhibit G 
 Exhibit H 
 Exhibit I 
 Seller Disclosure Letter 
 Section 1.1 Permitted Liens

 Section 4.3 Absence of Conflicts 
 Section 4.4
Capitalization 
 Sections 4.5 SCT Subsidiaries 
 Section 4.6 Governmental Approvals; Consents 
 Section 4.7 Financial Statements 
 Section 4.8 Absence of Changes 
 Section 4.9 Real Property

 Section 4.10 Contracts 
 Section 4.11 Litigation

 Section 4.12 Intellectual Property Rights 
 Section 4.13 Tax Matters 
 Section 4.14 Labor Matters 

 Section 4.15(a) Employee Benefit Plans 
 Section 4.17 Title to Assets 
 Section 4.18 Environmental Matters 
 Section 4.19 Insurance 
 Section 4.20 Undisclosed Liabilities

 Section 4.21 Related Party Transactions 
 Section 4.22 Product Warranties 
 Section 4.23 Product Liability 
 Section 4.24 Finders; Brokers 
 Section 7.1 Operation of the Business 
 4.7 (i) Consolidated Financial Statements and Report of Independent Certified Public Accountants Standard Car Truck Company and Subsidiaries December 31, 2007
and 2006 
 4.7 (ii) Balance Sheet 6/30/08 
 4.7
(iii) Income Statement 6/30/08 
 4.7 (iv) Cash Flow Statement 6/30/08 
 4.10 (iii) 2 Outstanding Letters of Credit 7/8/08 
 4.12 List of Patents and Trademarks 
 Section 4.15 (e) Schedule of Employee Compensation 
 Section 4.15 (e) Leave Schedule 
 4.22-2 SCT QER Report as of 8/22/08 
 4.22-3 Triangle QER Report as of 8/22/08 
 4.22-4 Durox QER Report as of 8/22/08 

 Buyer Disclosure Letter 
 Section 8.3(b) Antitrust approvals 
 Attachment I – Escrow Agreement 
 Attachment II Wabtec Corporation Non-Competition and Confidentiality Agreement 
 Attachment III – Wabtec Corporation
Employee Non-Competition and Confidentiality Agreement 
 Attachment IV – Wabtec Corporation Employee Non-Competition and Confidentiality Agreement

  

	*	The schedules and exhibits to this agreement have been omitted. A copy of the omitted schedule and exhibits will be provided to the Securities and Exchange Commission upon request.

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