Document:

exv10w28

 

Exhibit 10.28

CONFIDENTIAL

 

STOCK PURCHASE AGREEMENT

 

Among

OGLEBAY NORTON COMPANY,

O-N MINERALS COMPANY,

O-N MINERALS (LIME) COMPANY

and

UNITED STATES LIME & MINERALS, INC.

Dated

December ____, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 
	 	 	Page
	ARTICLE I DEFINITIONS; CONSTRUCTION
	 	 	1	 
	 
	 	 	 	 
	1.1 Definitions
	 	 	1	 
	1.2 Construction
	 	 	7	 
	 
	 	 	 	 
	ARTICLE II THE SALE AND PURCHASE
	 	 	8	 
	 
	 	 	 	 
	2.1 Closing
	 	 	8	 
	2.2 Sale and Purchase of Sale Shares
	 	 	8	 
	2.3 Purchase Price
	 	 	8	 
	2.4 Closing Matters
	 	 	8	 
	2.5 Purchase Price Working Capital Adjustment
	 	 	9	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF SELLERS
	 	 	11	 
	 
	 	 	 	 
	3.1 Organization and Authority
	 	 	11	 
	3.2 Authorization; Enforceability
	 	 	11	 
	3.3 Shares; Capitalization
	 	 	11	 
	3.4 No Violation of Laws or Agreements; Consents
	 	 	12	 
	3.5 Financial Statements; Books and Records
	 	 	12	 
	3.6 No Changes
	 	 	13	 
	3.7 Taxes
	 	 	14	 
	3.8 Owned and Leased Property; Condition of Assets
	 	 	16	 
	3.9 Condition of Assets
	 	 	17	 
	3.10 No Pending or Threatened Litigation
	 	 	17	 
	3.11 Compliance With Law; Permits
	 	 	17	 
	3.12 Intellectual Property Rights
	 	 	18	 
	3.13 Labor Matters
	 	 	18	 
	3.14 Employees: Employee Related Agreements and Plans; ERISA
	 	 	19	 
	3.15 Environmental Matters
	 	 	21	 
	3.16 Bank Accounts
	 	 	22	 
	3.17 Material Contracts
	 	 	22	 
	3.18 Brokers, Finders, Etc
	 	 	23	 
	3.19 Insurance
	 	 	23	 
	3.20 Inventories
	 	 	24	 
	3.21 Product Liability
	 	 	24	 
	3.22 Significant Customers and Suppliers
	 	 	24	 
	3.23 Accounts Receivable
	 	 	24	 
	3.24 Disclosure
	 	 	24	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER
	 	 	25	 
	 
	 	 	 	 
	4.1 Organization
	 	 	25	 
	4.2 Authorization; Enforceability
	 	 	25	 

i

 

 

 

	 	 	 	 	 
	 	 	Page
	4.3 No Violation of Laws; Consents
	 	 	25	 
	4.4 No Pending Litigation or Proceedings
	 	 	25	 
	4.5 Brokers, Finders, Etc
	 	 	25	 
	4.6 Investment
	 	 	25	 
	4.7 Financial Ability
	 	 	26	 
	 
	 	 	 	 
	ARTICLE V [Intentionally Left Blank]
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VI ADDITIONAL AGREEMENTS
	 	 	26	 
	 
	 	 	 	 
	6.1 Use of Names
	 	 	26	 
	6.2 Tax Matters
	 	 	26	 
	6.3 Employees and Plans
	 	 	29	 
	6.4 Insurance
	 	 	31	 
	6.5 No Public Announcement
	 	 	31	 
	6.6 Expenses
	 	 	31	 
	6.7 Covenant Not to Compete
	 	 	31	 
	6.8 Further Assurances and Cooperation
	 	 	32	 
	6.9 Regarding Accounting, Financial Statements, and SEC Reporting
	 	 	32	 
	6.10 Indemnification
	 	 	33	 
	6.11 Consents
	 	 	33	 
	6.12 Groundwater Monitoring Program
	 	 	33	 
	6.13 Accounts Receivable
	 	 	33	 
	6.14 Infringement Liability
	 	 	33	 
	6.15 Trapezoid Parcel
	 	 	34	 
	6.16 Master Lease and License Arrangements
	 	 	34	 
	6.17 Defense of Certain Disclosed Litigation and Claims
	 	 	34	 
	 
	 	 	 	 
	ARTICLE VII CONDITIONS TO CLOSING
	 	 	35	 
	 
	 	 	 	 
	7.1 Conditions Precedent to Obligation of Buyer
	 	 	35	 
	7.2 Conditions Precedent to Obligation of Sellers
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VIII INDEMNIFICATION
	 	 	35	 
	 
	 	 	 	 
	8.1 Survival of Representations, Warranties, Covenants and Agreements
	 	 	35	 
	8.2 General Indemnification
	 	 	36	 
	8.3 Procedures
	 	 	37	 
	8.4 Consequential Damages
	 	 	40	 
	8.5 Sole Remedy
	 	 	40	 
	8.6 Costs
	 	 	40	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	40	 
	 
	 	 	 	 
	9.1 Books and Records
	 	 	40	 
	9.2 Notices
	 	 	41	 
	9.3 Assignment; Governing Law
	 	 	42	 
	9.4 Amendment and Waiver; Cumulative Effect
	 	 	43	 
	9.5 No Third Party Beneficiaries
	 	 	43	 

ii

 

 

 

	 	 	 	 	 
	 	 	Page
	9.6 Severability
	 	 	43	 
	9.7 Multiple Counterparts
	 	 	44	 
	9.8 Joint Drafting
	 	 	44	 
	9.9 Entire Agreement
	 	 	44	 

iii

 

 

 

LIST OF SCHEDULES

Note: Schedules
Omitted. Registrant agrees to furnish supplementally a copy of any
omitted Schedules to the Commission upon request.

	 	 	 
	Schedule 1.1A -

	 	Closing Net Working Capital
	Schedule 1.1B -

	 	Permitted Encumbrances
	Schedule 3.3 -

	 	Shares; Capitalization
	Schedule 3.4(a) -

	 	No Violation of Laws or Agreements
	Schedule 3.4(b) -

	 	Consents
	Schedule 3.5 -

	 	Financial Statements; Books and Records
	Schedule 3.6 -

	 	No Changes
	Schedule 3.7 -

	 	Taxes
	Schedule 3.8(a) -

	 	Owned Real Property
	Schedule 3.8(b) -

	 	Leases of Real Property
	Schedule 3.8(d) -

	 	Shared Facilities
	Schedule 3.8(e) -

	 	Rights in the Assets
	Schedule 3.9 -

	 	Condition of Assets
	Schedule 3.10 -

	 	No Pending or Threatened Litigation
	Schedule 3.11(a) -

	 	Compliance With Law
	Schedule 3.11(b) -

	 	Permits
	Schedule 3.12(a) -

	 	Intellectual Property Agreements
	Schedule 3.12(b)(i) -

	 	Rights in Intellectual Property
	Schedule 3.12(b)(ii) -

	 	Patents
	Schedule 3.12(b)(iii)
- 

	 	Marks
	Schedule 3.13-

	 	Labor Matters
	Schedule 3.14(a) -

	 	List of Plans
	Schedule 3.14(b) -

	 	Status of Plans
	Schedule 3.14(c) -

	 	Liabilities
	Schedule 3.14(d) -

	 	Contributions
	Schedule 3.14(f)(i) -

	 	Employees
	Schedule 3.14(f)(ii) -

	 	Employees
	Schedule 3.15-

	 	Environmental Matters
	Schedule 3.15(c) -

	 	Permits
	Schedule 3.16-

	 	Bank Accounts
	Schedule 3.17-

	 	Material Contracts
	Schedule 3.18-

	 	Brokers, Finders, Etc.
	Schedule 3.19(a) -

	 	Insurance Policies
	Schedule 3.19(b) -

	 	Insurance Claims
	Schedule 3.20-

	 	Inventories
	Schedule 3.21-

	 	Product Liability
	Schedule 3.22-

	 	Significant Customers and Suppliers
	Schedule 3.23 -

	 	Accounts Receivable

IV

 

 

 

List of Exhibits

Note:
Exhibits Omitted. Registrant agrees to furnish supplementally a copy
of any omitted Exhibits to the Commission upon request.

	 	 	 
	Exhibit A

	 	Opinion of Sellers’ Counsel
	Exhibit B

	 	Escrow Agreement

V

 

 

 

STOCK PURCHASE AGREEMENT

     This STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of the 28th day of
December, 2005, by and among OGLEBAY NORTON COMPANY, an Ohio corporation (“Parent”), O-N MINERALS
COMPANY, an Ohio corporation (“O-N Minerals”), O-N MINERALS (LIME) COMPANY, a Georgia corporation
(“O-N Lime”, and together with Parent and O-N Minerals, “Sellers”), and UNITED STATES LIME &
MINERALS, INC., a Texas corporation (“Buyer”).

INTRODUCTORY STATEMENTS

	A.	 	Sellers directly or indirectly own all of the issued and outstanding capital stock of O-N
Minerals (St. Clair) Company, a Delaware corporation (the “Sale Shares” and the “Company,”
respectively).

	B.	 	On the terms and subject to the conditions set forth in this Agreement, O-N Lime desires to
sell to Buyer, and Buyer desires to purchase from O-N Lime, the Sale Shares.

     In consideration of the representations, warranties, covenants and agreements contained
herein, Sellers and Buyer, each intending to be legally bound hereby, agree as set forth below.

ARTICLE I

DEFINITIONS; CONSTRUCTION

     1.1 Definitions. As used in this Agreement, the following terms have the meanings
specified in this Section 1.1.

     “Accounts Receivable” has the meaning given that term in Section 3.23.

     “Affected Employees” has the meaning given that term in Section 6.3(a).

     “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly,
through one or more intermediaries, controls, is controlled by or is under common control with such
Person.

     “Affiliated Group” has the meaning given that term in Section 3.7(a).

     “Agreement” means this Stock Purchase Agreement, as it may be amended from time to time.

     “Applicable Contract” means any material Contract to which the Company is a party.

     “ATF” has the meaning given that term in Section 3.15(c).

     “Balance Sheet” has the meaning given that term in Section 3.5(a).

 

 

     “Balance Sheet Date” has the meaning given that term in Section 3.5(a).

     “Business” means the production and sale of limestone, quicklime, hydrated lime, chemical
limestone, blended lime, sized limestone, and related filler products operated out of the Company’s
facility located in Marble City, Oklahoma.

     “Business Day” means a day other than a Saturday, Sunday or other day on which commercial
banks in Cleveland, Ohio are authorized or required by law to close.

     “Buyer” has the meaning given that term in the preamble of this Agreement.

     “Buyer Benefit Programs” has the meaning given that term in Section 6.3(a).

     “Closing” has the meaning given that term in Section 2.1.

     “Closing Balance Sheet” means the Closing Balance Sheet delivered pursuant to Section
2.5(a), as adjusted, if at all, pursuant to Section 2.5(b).

     “Closing Date” has the meaning given that term in Section 2.1.

     “Closing Net Working Capital” means the excess of the current assets of the Company as of the
close of business on the Closing Date over the current liabilities of the Company as of the close
of business on the Closing Date, determined in accordance with GAAP and adjusted in accordance with
Schedule 1.1A.

     “COBRA” has the meaning given that term in Section 3.14(c)(ii).

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the
applicable rulings and regulations thereunder.

     “Company” has the meaning given that term in the Introductory Statements of this Agreement.

     “Company Share Transfer” has the meaning given that term in Section 2.2.

     “Competitive Business” has the meaning given that term in Section 6.7.

     “Contract” and “Contracts” means any agreement, written or oral, note, letter of credit,
indenture, financial instrument, lease or license to which the Company is a party or by which it is
bound.

     “DEQ” has the meaning given that term in Section 6.12.

     “Earnest Money Deposit” means the sum of $50,000, being the amount paid by Buyer to O-N Lime
prior to the date hereof as an earnest money deposit.

     “Encumbrance” means any mortgage, deed of trust, pledge, security interest, claim, easement,
lien, charge, option, restriction on transfer, conditional sale or other title retention agreement,
defect in title or other restriction of a similar kind.

 

 

     “Environmental Law” means all Laws (other than mining Laws applicable to the reclamation of
Lime Kiln Dust) in effect on the Closing Date relating to (i) the control of any Hazardous
Substance or the protection of the environment (including air, water, land, flora, and fauna), (ii)
the possession, generation, manufacture, processing, use, handling, management, treatment, storage,
disposal, release, distribution, or transportation of any Hazardous Substance or Lime Kiln Dust;
and (iii) the acquisition or beneficial use of surface water or groundwater.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and the
applicable rulings and regulations thereunder.

     “ERISA Affiliate” means, with respect to the Company, any other entity or trade or business
that, at the relevant time, is a member of a group described in Section 414(b), (c), (m) or (o) of
the Code or Section 4001(b)(1) of ERISA that includes the Company or that is a member of the same
“controlled group” as the Company pursuant to Section 4001(a)(14) of ERISA.

     “Escrow Agent” has the meaning given that term in Section 2.4(h).

     “Escrow Agreement” has the meaning given that term in Section 2.4(h).

     “Escrow Amount” has the meaning given that term in Section 2.4(h).

     “Expenses” means any and all reasonable expenses incurred in connection with any claim,
action, suit or proceeding incident to any matter indemnified against hereunder, including court
filing fees, court costs, arbitration fees or costs, costs of appeal including necessary
supercedeas and other bonds, witness fees and reasonable fees and disbursements of legal counsel,
investigators, expert witnesses, accountants and other professionals.

     “Financial Statements” has the meaning given that term in Section 3.5(a).

     “GAAP” means United States generally accepted accounting principles, consistently applied.

     “Governing Documents” means, with respect to any Person that is not a natural Person, the
certificate or articles of incorporation, bylaws or regulations, deed of trust, formation or
governing agreement and other charter documents or organizational or governing documents or
instruments of such Person.

     “Governmental Authority” means any court or government (federal, state, local, foreign or
provincial) or any political subdivision thereof, including without limitation, any department,
commission, board, bureau, agency or other regulatory, administrative or Governmental Authority or
instrumentality.

     “Hazardous Substance” means any solid, liquid or gaseous substance or material that (i) is
defined as a “hazardous material,” “pollutant,” “contaminant,” “hazardous waste,” or
“hazardous substance” under any Environmental Law or (ii) is toxic, explosive, corrosive,
infectious, radioactive, carcinogenic or mutagenic or otherwise hazardous and is regulated under
Environmental Laws, including gasoline, diesel fuel or other petroleum hydrocarbons,
polychlorinated biphenyls or asbestos.

 

 

     “Income Tax” means any Tax on net or gross income, profits or receipts, together with any
interest or penalties, imposed by any Governmental Authority.

     “Indebtedness” means any obligation for borrowed money of the Company, any capitalized lease
obligation of the Company, any obligation properly classified as indebtedness or debt under GAAP,
or any guarantee of the Company in respect of any indebtedness or obligation for borrowed money of
any Person (other than the endorsement of negotiable instruments for deposit or collection in the
ordinary course of business.)

     “Indemnified Party” has the meaning given that term in Section 8.2(a).

     “Indemnifying Party” has the meaning given that term in Section 8.2(a).

     “Independent Auditors” has the meaning given that term in Section 2.5(c).

     “Intellectual Property Assets” means: (i) all trademarks and service marks which are
registered or have applications to register pending and unregistered trademarks and service marks
of the Company (collectively, “Marks”) and, subject to the provisions of Section 6.1, the
corporate name of the Company and all fictional business names and trading names currently used by
the Company, (ii) all issued patents and patent applications of the Company (collectively,
“Patents”), (iii) all copyrights of the Company in both published works and unpublished works
including any registrations and applications appurtenant thereto, (iv) all Internet domain names
used by the Company and (v) all know-how, trade secrets, confidential information, customer lists,
software, technical information, data, process technology, plans, drawings and blue prints of the
Company.

     “IP Liability” has the meaning given that term in Section 6.14.

     “Knowledge” of a fact or matter, when used in relation to an individual, means: (a) such
individual is actually aware of such fact or other matter; or (b) a reasonable individual in such
Person’s position would be aware of such fact or other matter.

     “Law” means any applicable statute, law, ordinance, rule, regulation, order, judgment or
decree enacted, adopted, issued or promulgated by any Governmental Authority.

     “Leased Real Property” means those properties identified in Section 3.8(b).

     “Lime Kiln Dust” means lime kiln dust and materials derived therefrom in the operation of the
Business by the Company, including scrubber sludge.

     “Litigation” means any action, suit, arbitration or proceeding of any nature or kind
whatsoever, whether civil, criminal or administrative, at law or in equity, by or before any
Governmental Authority or arbitrator.

     “Losses” means, without duplication, any and all losses, costs, obligations, liabilities,
settlement payments, fines, penalties, damages, diminution in value (meaning a dollar-for-dollar
loss occurring as a result of a claim that is not a third party claim), Expenses or other charges,
as such term is further described in Section 8.2(c).

 

 

     “Marks” has the meaning given that term in the definition of “Intellectual Property Assets”
above.

     “Master Leases and Licenses” means the leases and licenses with General Electric Capital
Corporation, Associates Leasing, Inc., JWS Corporation and Datastream Systems, Inc. entered into on
a group basis by Sellers, as more particularly described in Schedule 3.4(b).

     “Material Adverse Effect” means a material adverse effect on the results of operations,
financial condition or assets of the Company other than changes (i) relating to generally
applicable economic conditions or events, (ii) the industry in which the Company operates in
general or (iii) resulting from the announcement by O-N Lime of its intention to sell the Company.

     “Multiemployer Plan” means a multiemployer plan within the meaning of Section 4001 of ERISA.

     “Non-Competition Party” means Parent and each Affiliate thereof.

     “Non-Competition Period” means the period commencing on the Closing Date and continuing until
the fifth anniversary of the Closing Date.

     “Non-Competition Products” means limestone, quicklime, hydrated lime, chemical limestone,
blended lime and sized limestone lime slurry, excluding lime used in the production of autoclaved
air entrained concrete.

     “Objection Notice” has the meaning given that term in Section 2.5(b).

     “O-N Minerals” has the meaning given that term in the preamble of this Agreement.

     “Owned Real Property” has the meaning given that term in Section 3.8(a).

     “O-N Lime” has the meaning given that term in the preamble of this Agreement

     “OPDES” has the meaning given that term in Section 6.12.

     “Parent” has the meaning given that term in the preamble of this Agreement.

     “Party” means each of Sellers and Buyer.

     “Patents” has the meaning given that term in the definition of “Intellectual Property Assets”
above.

     “Peg Amount” means Three Million Four Hundred Thousand Dollars ($3,400,000).

     “Permits” has the meaning given that term in Section 3.11(b).

     “Permitted Encumbrances” means (i) liens securing obligations of less than $10,000 (ii) liens
for Taxes and other governmental charges and assessments that are not yet due and payable, (iii)
liens of landlords and of carriers, warehousemen, mechanics, materialmen and repairmen

 

 

and other similar liens arising in the ordinary course of business for sums not yet due and payable, (iv)
liens reflected in the Financial Statements, (v) liens for purchase money security interests, (vi)
other liens on, or imperfections of title with respect to, property that are not material in amount
and do not materially detract from the value of or materially impair the existing use of the
property affected by such lien or imperfection and (vi) Encumbrances set forth on Schedule
1.1B.

     “Person” means and includes a natural person, a corporation, an association, a partnership, a
limited liability company, a trust, a joint venture, an unincorporated organization or a
Governmental Authority.

     “Pre-Closing Period” has the meaning given that term in Section 3.7(c).

     “Proceedings” has the meaning given that term in Section 8.2(a).

     “Purchase Price” has the meaning given that term in Section 2.3.

     “Related Party” means (i) any Affiliate of a Party or (ii) any officer or director of a Party
or of any Person identified in clause (i) preceding.

     “Remedial Action” has the meaning given that term in Section 8.3(g)(i).

     “Reserved Names” has the meaning given that term in Section 6.1.

     “Sale Shares” has the meaning given that term in the Introductory Statements of this
Agreement.

     “Schedules” means the disclosure schedules attached to this Agreement.

     “Section 338(h)(10) Election” has the meaning given that term in Section 6.2(g).

     “Securities Act” has the meaning given that term in Section 4.6.

     “SEC” has the meaning given that term in Section 6.9(a).

     “Sellers” has the meaning given that term in the preamble of this Agreement.

     “Sellers’ 401(k) Plan” means Oglebay Norton Company Investment Savings and Stock Ownership
Plan.

     “Sellers’ Employee Benefit Plan” means any (i) “employee benefit plan,” within the meaning of
Section 3(3) of ERISA or (ii) stock option, stock purchase, restricted stock, profit sharing,
pension, retirement, deferred compensation, incentive, fringe benefit, severance, medical, life,
disability, accident, salary continuation, sick pay, sick leave, supplemental
retirement and unemployment benefit plans or programs (whether or not insured), that has been
established, maintained, sponsored or contributed to by Sellers or the Company for the benefit of
any active, retired or former employee or director of the Company or for which the Company

 

 

otherwise may have any liability; provided, that “Sellers’ Employee Benefit Plan” shall not
include any Multiemployer Plan.

     “Sellers’ Knowledge” means the Knowledge of Karl Everett, Joseph Ferrell, Thomas Giordani,
Kurt Klutz, James Underwood, Richard Calhoun and Wilber Ferris.

     “Settlement Date” means the date on which the Closing Balance Sheet is finally determined
pursuant to Section 2.5(b).

     “Straddle Period” has the meaning given that term in Section 3.7(c).

     “Tax” means taxes of any kind, levies or other like assessments, customs, duties, imposts,
charges or fees, including income, gross receipts, ad valorem, value added, excise, real or
personal property, asset, sales, use, license, payroll, transaction, capital, net worth and
franchise taxes, estimated taxes, withholding, employment, social security, workers compensation,
utility, severance, production, unemployment compensation, occupation, premium, windfall profits,
transfer and gains taxes or other governmental taxes imposed by or payable to any Governmental
Authority including all applicable penalties and interest.

     “Tax Matters” has the meaning given that term in Section 6.2(c)(i).

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

     “Territory” means the states of Arkansas, Kansas, Louisiana, Missouri, Oklahoma and Texas.

     “Title Company” has the meaning given that term in Section 2.4(h).

     “Title Policy” has the meaning given that term in Section 2.4(h).

     “Trapezoid Parcel” means the parcel of land more particularly described in Schedule
3.8(e) as to which the Company does not possess legal title on the date hereof.

     “WARN Act” means the Federal Workers’ Adjustment and Retraining Notification Act.

     “Working Capital Adjustment Amount” has the meaning given that term in Section 2.5(d).

     1.2 Construction.

          (a) Unless the context otherwise requires, as used in this Agreement: (i) an
accounting term not otherwise defined herein has the meaning currently ascribed to it in accordance
with GAAP; (ii) “or” is not exclusive; (iii) “including” and its variants mean
“including, without limitation” and its variants; (iv) words defined in the singular have the
parallel meaning in the plural and vice versa; (v) references to “written” or “in writing” include
in electronic form; (vi) the terms “hereof”, “herein”, “hereby”, “hereto”, and derivative or
similar

 

 

words refer to this entire Agreement, including the Schedules hereto; and (vii) all
Sections, Articles and Schedules referred to herein are, respectively, Sections and Articles of,
and Schedules to, this Agreement.

          (b) Headings as to the contents of particular Articles and Sections are for
convenience only and are in no way to be construed as part of this Agreement.

          (c) Any reference to “days” means calendar days unless Business Days are expressly
specified.

          (d) A reference to any Person includes such Person’s successors and permitted assigns.

          (e) The Schedules to this Agreement are incorporated herein by reference and made a
part hereof for all purposes.

ARTICLE II

THE SALE AND PURCHASE

     2.1 Closing. Subject to the satisfaction or waiver of all of the conditions set forth in
Article VII, the closing of the purchase and sale of the Sale Shares contemplated hereby
(the “Closing”) shall take place at the offices of Thompson Hine llp, One Chase Manhattan
Plaza, 58th Floor, New York, New York 10005-1401, at 10:00 a.m. local time on the date of this
Agreement, (the “Closing Date”).

     2.2 Sale and Purchase of Sale Shares. Upon the terms and subject to the conditions of this
Agreement and in consideration of the Purchase Price, at the Closing, O-N Lime hereby sells,
assigns, transfers and delivers to Buyer (such sale, assignment, transfer and delivery, the
“Company Share Transfer”), and Buyer hereby purchases and takes delivery of the Sale Shares, free
and clear of all Encumbrances. The certificate representing the Sale Shares has been duly endorsed
or accompanied by a stock power duly endorsed by O-N Lime for transfer to Buyer.

     2.3 Purchase Price. The aggregate consideration hereunder paid by Buyer to O-N Lime with
respect to the Sale Shares (the “Purchase Price”) is (a) Fourteen Million Dollars ($14,000,000)
plus or minus (b) the Working Capital Adjustment Amount. The Purchase Price is being paid as
provided in Section 2.4(a) and (g) and 2.5(d).

     2.4 Closing Matters. At the Closing:

          (a) Buyer shall pay the difference between (i) that part of the Purchase Price stated
in Section 2.3(a), and (ii) the sum of (A) the Earnest Money Deposit and (B) the Escrow
Amount, by wire transfer of immediately available funds to an account designated by O-N Lime.

          (b) Sellers shall apply the Earnest Money Deposit against the Buyer’s obligation to
pay the Purchase Price.

 

 

          (c) Sellers shall pay and discharge, or cause to be paid and discharged, all
outstanding Indebtedness of the Company by wire transfer of immediately available funds.

          (d) Sellers shall deliver or cause to be delivered to Buyer pay-off letters, releases
and lien discharges (or agreements therefor) reasonably satisfactory to Buyer from each creditor to
whom any Indebtedness is owed by the Company.

          (e) O-N Lime shall deliver and cause to be delivered the Sale Shares.

          (f) Sellers shall cause to be delivered an opinion of counsel for Sellers in form and
substance as set forth in Exhibit A, hereto.

          (g) Buyer and Sellers will enter into an escrow agreement in the form of Exhibit
B (the “Escrow Agreement”) with an escrow amount of Eight Hundred Thousand Dollars ($800,000)
(the “Escrow Amount”) and The Bank of New York (the “Escrow Agent”) as escrow agent and Buyer shall
pay the Escrow Amount to the Escrow Agent.

          (h) Sellers shall, at their expense, deliver to Buyer:

                         (i) Endorsements to Owner’s Policy of Title Insurance #37 0080 106 4499, dated December 22,
1995, issued by Chicago Title Insurance Company (the “Title Company”), insuring the interest of
Global Stone St. Clair Inc., a Delaware corporation, in the described property (the “Title
Policy”), which shall (i) change the effective date of the Title Policy to Closing Date and reflect
only Permitted Exceptions, if any, and (ii) contain the agreement of the Title Company not to
assert the provisions of Exclusions from Coverage 3(a), (b) or (e) (commonly called a
Non-Imputation Endorsement); and

                         (ii) An Aerial Photographic Overlay Survey showing the legal descriptions of the Owned Real
Property and the Leased Real Property superimposed thereon, dated no earlier than December 15,
2005, prepared by Smith Roberts Baldischwiler, LLC, of Oklahoma City, Oklahoma.

          (i) Sellers shall deliver to Buyer executed resignations of all officers and directors
of the Company.

          (j) The Parties shall deliver to each other the documents required to be delivered at
the Closing pursuant to this Agreement.

     2.5 Purchase Price Working Capital Adjustment. Following the Closing Date, the Purchase
Price shall be adjusted, if at all, as set forth below:

     (a) Sellers shall prepare and deliver to Buyer, within forty-five (45) days after the Closing
Date, an unaudited balance sheet of the Company as of the close of business on the Closing Date
(the “Closing Balance Sheet”) which shall set forth a calculation of the Closing Net Working
Capital. The Closing Balance Sheet and the calculation of the Closing Net Working Capital shall be
prepared in a manner consistent with the preparation of the Balance Sheet and Schedule
1.1A. During such forty-five (45) day period, Sellers shall provide Buyer with reasonable
access to their books, records and personnel. Seller shall thereafter provide to

 

 

Buyer such supporting work papers or other supporting information relating to the Closing Balance Sheet and
the calculation of the Closing Net Working Capital as may be reasonably requested by Buyer.

          (b) On or prior to the 30th day following Sellers’ delivery of the Closing Balance Sheet,
Buyer may give Sellers a written notice stating in reasonable detail Buyer’s objections (an
“Objection Notice”) to the Closing Balance Sheet. Any Objection Notice shall specify in reasonable
detail the dollar amount of any objection and the basis therefor. Any determination set forth on
the Closing Balance Sheet which is not specifically objected to in the Objection Notice shall be
deemed accepted and shall be final and binding upon the parties upon delivery of the Objection
Notice. If Buyer does not give Sellers an Objection Notice within such 30-day period, then the
Closing Balance Sheet shall be final and binding upon the Parties for purposes of calculating the
Purchase Price under this Agreement.

          (c) Following Sellers’ receipt of any Objection Notice, Sellers and Buyer shall attempt to
negotiate in good faith to resolve such dispute. In the event that Sellers and Buyer fail to agree
on any of Buyer’s proposed adjustments set forth in the Objection Notice within thirty (30) days
after Sellers receive the Objection Notice, Sellers and Buyer agree that a mutually acceptable
accounting firm of nationally recognized standing (the “Independent Auditors”) shall, within the
30-day period immediately following referral of the Closing Balance Sheet and/or the calculation of
the Closing Net Working Capital to the Independent Auditors, make the final determination thereon
in accordance with the terms of this Agreement. Sellers and Buyer each shall provide the
Independent Auditors with their respective determinations of the Closing Net Working Capital. The
Independent Auditors shall make an independent determination of the Closing Net Working Capital
that, assuming compliance with the previous clause, shall be final and binding on Sellers and Buyer
if such independent determination shall be within the range proposed by Sellers and Buyer in the
Closing Net Working Capital and the Objection Notice. If the Independent Auditors’ determination
of any adjustment is outside of the range proposed by Sellers and Buyer in the Closing Net Working
Capital and the Objection Notice, then the Closing Net Working Capital proposed by the Party whose
adjustment was closer to that of the Independent Auditors shall be final and binding on Sellers and
Buyer. The fees, costs and expenses of the Independent Auditors shall be paid equally by the
Parties.

          (d) Promptly after the Closing Balance Sheet and the calculation of the Net Working Capital
are finally determined and become final and binding on the Parties under this Section 2.5,
Sellers and Buyer or the Independent Auditors (if applicable) shall recalculate the Purchase Price
by giving effect to such final and binding determinations. To the extent the Closing Net Working
Capital exceeds the Peg Amount, Buyer shall pay to O-N Lime an amount equal to the excess. To the
extent the Closing Net Working Capital is less than the Peg Amount, O-N Lime shall pay to Buyer an
amount equal to the shortfall. Any such payment shall be made by wire transfer of immediately available funds to an account designated by the Party entitled to
payment within two (2) Business Days following the Settlement Date. The foregoing payment shall be
referred to herein as the “Working Capital Adjustment Amount”.

 

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SELLERS

     Sellers, jointly and severally, represent and warrant to Buyer, the following representations
and warranties, which Buyer has relied upon.

     3.1 Organization and Authority. Sellers are corporations duly organized, validly existing
and in good standing under the Laws of their respective states of incorporation. Each Seller has
all corporate power and authority to enter into this Agreement and to perform its obligations
hereunder. The Company is duly organized, validly existing and in good standing under the Laws of
the State of Delaware and has all corporate power and authority to own, operate or lease its
properties and carry on the Business as now conducted. The Company is duly qualified to do
business and is in good standing in the State of Oklahoma. The Company is duly qualified to do
business and is in good standing in each other jurisdiction in which the character of the
properties owned, operated or leased by it or the nature of the activities conducted by it make
such qualification and good standing necessary, except where the failure to be so qualified or in
good standing could not reasonably be expected to have a Material Adverse Effect.

     3.2 Authorization; Enforceability. This Agreement has been duly executed and delivered by
and constitutes the legal, valid and binding obligation of each Seller, enforceable against it in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, fraudulent conveyance, moratorium and other Laws of general application
relating to or affecting creditors’ rights and to general principles of equity. The execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby have been
duly and validly authorized by all necessary corporate proceedings on the part of each Seller.

     3.3 Shares; Capitalization.

          (a) Sale Shares. The authorized capital stock of the Company and the number
of shares of capital stock issued, outstanding and held in treasury are listed on Schedule
3.3. All of the Sale Shares are owned of record and beneficially by O-N Lime and are free and
clear of any and all Encumbrances. All of the Sale Shares have been duly authorized and validly
issued and are fully paid and nonassessable. The Company has no outstanding options, warrants,
rights or subscriptions, nor has it entered into or incurred any other binding commitment or
obligation which remains enforceable to issue or sell any shares of its capital stock, or any
securities or obligations convertible into or exchangeable for any shares of its capital stock, nor
has it granted to any Person any right which is outstanding to subscribe for or acquire from it any
shares of its capital stock, and no such securities, obligations or rights are outstanding.

          (b) Transfer of Title. Upon delivery of the Sale Shares hereunder, Buyer
shall acquire title thereto, free and clear of any and all Encumbrances.

 

 

     3.4 No Violation of Laws or Agreements; Consents.

          (a) No Violation of Laws or Agreements. Except as set forth on Schedule
3.4(a), neither the execution and delivery by Sellers of this Agreement, the consummation of
the transactions contemplated hereby, nor the compliance with or fulfillment of the terms,
conditions or provisions hereof by Sellers:

               (i) violates any provision of the Governing Documents of a Seller or the Company;

               (ii) conflicts with, breaches, constitutes a default or an event of default under any of the
terms of, results in the termination of, accelerates the maturity of or creates any Encumbrance on
the Sale Shares or any asset or property of the Company or under any Applicable Contract;

               (iii) violates any Law to which the Company is subject or by which any asset of the Company is
bound or affected;

               (iv) will cause the Company to become subject to, or to become liable for, the payment of any
Tax that it is not subject to on the date hereof;

               (v) will contravene, conflict with or result in a violation or breach of any provision of, or
give any Person the right to declare a default or exercise any remedy under, or to accelerate to
maturity a performance of, or to cancel, terminate, or modify any Applicable Contract; and

               (vi) neither Sellers nor the Company are required to give notice to or to obtain any consent
from any Person or Governmental Authority in connection with the execution and delivery of this
Agreement or the consummation or performance of the terms hereof.

          (b) Consents. Except as set forth on Schedule 3.4(b), no material
consent, approval or authorization of, or registration or filing with, any Person is required in
connection with the execution or delivery by each Seller of this Agreement or the consummation by
each Seller of the transactions contemplated hereby.

3.5 Financial Statements; Books and Records.

          (a) The balance sheets of the Company as of December 31, 2003 and 2004 and the income
statements of the Company for the two one year periods ended on such dates and the unaudited
balance sheet and income statement for the Company as of June 30, 2005 (collectively, the
“Financial Statements”) have been delivered to Buyer and are attached hereto as Schedule
3.5. The Financial Statements (i) have been prepared in accordance with GAAP, except as set
forth on Schedule 3.5, and (ii) present fairly in all material respects the financial
condition and results of operations, changes in stockholders’ equity, and cash flow of the
Company at the dates and for the relevant periods indicated. The unaudited balance sheet of
the Company as of June 30, 2005 included in the Financial Statements shall be referred to herein as
the “Balance Sheet,” and June 30, 2005 shall be referred to herein as the “Balance Sheet Date”.
Except as set forth in Schedule 3.5, the Company has no liability required to be disclosed
in the

 

 

Financial Statements except for liabilities reflected or reserved against in the Balance
Sheet and current liabilities incurred in the ordinary course of business of the Company since the
Balance Sheet Date.

          (b) The books of account, minute books, stock record books, and other records of the
Company, all of which have been made available to Buyer, are complete and correct and have been
maintained in accordance with sound business practices, including the maintenance of an adequate
system of internal controls. The minute books of the Company contain accurate and complete records
of all meetings held of, and corporate action taken by, the stockholders, the Board of Directors,
and committees of the Board of Directors of the Company. At the Closing, all of those books and
records will be placed in the possession of the Company. Buyer agrees that Sellers shall have
reasonable access thereto after the Closing. There are no minutes for meetings of the Board of
Directors or the stockholders of the Company that are not included in the minute books of the
Company.

     3.6 No Changes. Except as set forth on Schedule 3.6, since the Balance Sheet Date
there has been no material adverse change in the business, operations, properties, assets,
contractual relationships or condition of the Company, the Company has conducted the Business only
in the ordinary course and there has not been:

          (a) any change in the financial condition, assets or liabilities of the Company other
than in the ordinary course of business;

          (b) any material damage or destruction to or loss of any asset of the Company, whether
or not covered by insurance;

          (c) any commitment by the Company to provide benefits payable to or for the benefit of
any employee of the Company upon the occurrence of a change in control or to pay a deal bonus to
any employee of the Company;

          (d) any material increase in the salary, wage or bonus payable by the Company to any
employee of the Company;

          (e) any change in any method of accounting;

          (f) any sale or other disposition of assets or operations identifiable with a product
line of the Company, or any acquisition of another business, whether through the purchase of
assets, stock or otherwise, except in the ordinary course of business;

          (g) any sale, lease or other disposition of any material assets of the Company (other
than inventory in the ordinary course of business), or any condemnation or expropriation
or other taking of any assets of the Company, or known threat thereof, by any Governmental
Authority;

          (h) any issuance, sale or disposition of capital stock or any other securities or
grant of any option, warrant or other right to subscribe for or purchase any capital stock or any
other securities of the Company;

 

 

          (i) any declaration or payment of any dividend or distribution with respect to the
capital stock of the Company or any redemption, purchase or acquisition of the capital stock of the
Company;

          (j) any write-offs, write-downs or write-ups of the value of any of the inventory or
other assets of the Company;

          (k) any mortgage or pledge of any material assets of the Company, except for Permitted
Encumbrances or arising in the ordinary course of business;

          (l) any creation or assumption of any Indebtedness, except for Indebtedness incurred
in the ordinary course of business or pursuant to Contracts disclosed on Schedule 3.6,
entered into in the ordinary course of business;

          (m) any guarantee of any liability (whether directly, contingently or otherwise) for
the obligations of any other Person except in the ordinary course of business and except for the
endorsement of negotiable instruments by the Company in the ordinary course of business;

          (n) any Tax election made, any Tax liability settled or compromised, or any waiver or
extension of the statute of limitations with respect to any Taxes; or

          (o) any agreement or commitment to do any of the foregoing.

     3.7 Taxes.

          (a) Affiliated Group. The Company is a member of an “affiliated group” (the
“Affiliated Group”) within the meaning of Section 1504(a) of the Code, and Oglebay Norton Company
is the “common parent” of the Affiliated Group.

          (b) Liabilities. Except as set forth in Schedule 3.7, each of the
Company or one or more of the Sellers, on the Company’s behalf, has:

               (i) duly and timely filed with the appropriate federal, state, local or other taxing
authorities all Tax Returns required to be filed by or on behalf of the Company, and

               (ii) duly and timely paid all Taxes with respect to the Company whether or not such Taxes are
shown or required to be shown to be due on a Tax Return. Any Tax Return or Taxes for which an
extension to file or pay has been obtained will be deemed to be timely if filed and paid by the
date provided by any such extension. Schedule 3.7 sets forth all Tax Returns for which an
extension to file or pay is currently outstanding.

          (c) Straddle Periods. Except as set forth on Schedule 3.7 and except
for Income Taxes, all Taxes and Tax liabilities of the Company (x) for all Tax periods ending on or
prior to the Closing Date or (y) with respect to any taxable year or period beginning before and
ending after the Closing Date (a “Straddle Period”), the portion of such Straddle Period ending on
and including the Closing Date (each such year or period or portion thereof ending on or before the
Closing Date, a “Pre-Closing Period”) to the extent due and payable have been paid or are being
contested in good faith.

 

 

          (d) Audits; Examinations. Except as set forth on Schedule 3.7:

               (i) (A) no audit or other examination of Taxes is currently pending with respect to the
Affiliated Group or the Company, or to Sellers’ Knowledge, threatened against the Company or the
Affiliated Group; and (B) no such audit or examination has been conducted with respect to which
there is any outstanding Tax liability of the Company, including the Taxes of any Person for which
the Company may be liable under Treasury Regulation §1.1502-6 (or any similar provision of state,
local or foreign law), as a transferee or successor, by Contract or otherwise;

               (ii) the Company has not received any written notice of any state, local or foreign income Tax
deficiency outstanding, proposed or assessed against or allocable to it; and

               (iii) as of the Closing Date, no statute of limitations will remain open as a result of its
having been waived or extended with respect to the payment or collection of Taxes of the Affiliated
Group or the Company.

          (e) Agreements. Except as disclosed in Schedule 3.7, there are no tax
sharing, allocation, indemnification or similar agreements in effect as between the Company and any
other Person (except for customary agreements to indemnify lenders or security holders in respect
of Taxes).

          (f) Consolidated Returns. Except with respect to the Affiliated Group or as
set forth on Schedule 3.7, the Company has not been included (nor has it been required to
be included) in any “consolidated”, “unitary” or “combined” Tax Return provided for under any Law
with respect to Taxes for which the Company may be liable for any taxable period for which the
statute of limitations has not expired.

          (g) All Taxes that the Company is required by law to withhold or collect, including
without limitation, sales and use taxes, and amounts required to be withheld for Taxes of
employees, have been duly withheld or collected and, to the extent required, have been paid over to
the proper Governmental Authority or are held in separate bank accounts for such purpose.

          (h) The Company has not received written notice of a claim made by any taxing
authority in a jurisdiction where it does not file Tax Returns that it is or may be subject to Tax
in such jurisdiction and, to the best knowledge of the Company, it is not required to file Tax
Returns in any jurisdiction other than those set forth in Schedule 3.7.

          (i) In the twenty four (24) months preceding the Closing Date, there have been no Tax
rulings, requests for rulings or closing agreements with any taxing authority with respect to the
Company other than those set forth on Schedule 3.7.

          (j) Neither the Company nor the Affiliated Group has deferred income reportable for a
current Tax period (or portion thereof) or a period (or portion thereof) beginning after the
Closing Date but that is attributable to a transaction (e.g., an installment sale) occurring in a
period (or portion thereof) ending on or prior to the Closing Date.

 

 

          (k) The Company has not distributed the stock of any corporation in a transaction
satisfying the requirements of Section 355 of the Code since April 16, 1997. No stock of the
Company has been distributed in a transaction satisfying the requirements of Section 355 of the
Code since April 16, 1997.

          (l) The Affiliated Group has disclosed on its federal income Tax Returns all positions
taken therein that would reasonably be expected to result in any “substantial understatement of
federal income tax” within the meaning of Section 6662 of the Code.

          (m) No member of the Affiliated Group, including the Company, has engaged in any
“reportable transaction” within the meaning of Treasury Regulation section 1.6011-4(b)(2).

          (n) The capital stock of the Company does not constitute a U.S. real property interest
within the meaning of Section 897 of the Code.

          (o) There are no Encumbrances for Taxes upon any of the assets of the Company other
than Permitted Encumbrances.

          (p) No power of attorney with respect to any matter relating to Taxes of the Company
will be in effect after the Closing Date other than those set forth on Schedule 3.7.

          (q) The Company has not made any payments, is not obligated to make any payments, or
is a party to any Contract that would reasonably be expected to obligate it to make any payments
that will not be deductible by reason of Section 162(m) or 280G of the Code.

          (r) The charges, accruals and reserves for Taxes for all Tax periods ending on or
before the date of this Agreement are adequate and are at least equal to the Company’s liabilities
for Taxes.

     3.8 Owned and Leased Property; Condition of Assets.

          (a) Owned Real Property. Schedule 3.8(a) sets forth a complete and
accurate list of all real property owned as of the date hereof by the Company (the “Owned Real
Property”). Except as set forth on Schedule 3.8(a), the Company has good and marketable
title to its Owned Real Property, free and clear of all Encumbrances, except for Permitted
Encumbrances.

          (b) Leases of Real Property. Schedule 3.8(b) sets forth a complete and
accurate list of all leases of real property to which the Company is a party on the date hereof.
Except as set forth on Schedule 3.8(b), the Company, as lessee under each lease set forth
on Schedule 3.8(b), is in possession of the real property covered thereby, and (1) each
such lease is (A) a valid and binding obligation of the Company and (B) to Sellers’ Knowledge, a
valid and binding obligation of each other party thereto, and (2) (A) the Company is not in
material breach thereof or material default thereunder (and to Sellers’ Knowledge, no event or
circumstance has occurred that with notice or lapse of time or both, would constitute such an event
of default) and (B) to Sellers’ Knowledge, no other party to any such lease is in material breach
thereof or material default thereunder.

 

 

          (c) Personal Property. The Company owns or holds under valid leases all material
plant, machinery, equipment and other tangible personal property used for the conduct of the
Business, free and clear of all Encumbrances of Sellers other than Permitted Encumbrances.

          (d) Shared Facilities. There is no office or other facility shared by the Company
with Sellers or any of Sellers’ Affiliates, except as set forth on Schedule 3.8(d). Except
for any such shared facilities, neither Sellers nor any of Sellers’ Affiliates owns any material
assets used in the Business.

          (e) Rights in the Assets. Except as set forth on Schedule 3.8(e), the
Company owns or controls or has valid contractual rights to use all of the assets required to
enable it to collectively operate the Business after the Closing Date in substantially the same
manner as the Business is presently conducted.

     3.9 Condition of Assets. Except as set forth on Schedule 3.9, the buildings,
plant, structures, and equipment of the Company are structurally sound, are in reasonable and
customary operating condition and repair, fair wear and tear and ordinary and routine maintenance
excepted, and are adequate for the uses to which they are being put. The nature and extent of the
buildings, plant, structures, and equipment of the Company are sufficient for the continued conduct
of the Company’s Business after closing in substantially the same manner as immediately before.

3.10 No Pending or Threatened Litigation. Except as set forth on Schedule 3.10,

          (a) no Litigation is pending or, to Sellers’ Knowledge, threatened against the
Company;

          (b) there is no outstanding judgment, decree, or order of any Governmental Authority
against or affecting the Company; and

          (c) since the date the Company became an Affiliate of Parent and, to Sellers’
Knowledge, prior to that date, the Company has not been given written notice of, served in
connection with or, named as a defendant in, any civil lawsuit in which any plaintiff asserted any
claim for injury or damage allegedly caused by exposure to asbestos or silica.

     3.11 Compliance With Law; Permits.

          (a) Compliance With Law. Except (i) as set forth on Schedule 3.11(a) and
(ii) with regard to environmental matters (which the Parties agree shall be dealt with solely
pursuant to Section 3.15), the Company complies in all material respects with all
applicable Laws.

          (b) Permits. Except (i) as set forth on Schedule 3.11(b) and (ii) with
regard to environmental matters (which the Parties agree shall be dealt with solely pursuant to
Section 3.15), the Company owns, holds, possesses or has applied for all governmental
licenses, permits, and other authorizations (collectively, “Permits”) that are required under
applicable Laws to entitle it to own or lease, operate and use its assets and to carry on and
conduct the Business as

 

 

currently conducted by it, and all such Permits are valid and in effect,
except in any such case where the failure to own, hold, possess or apply for such Permits, or
maintain them as valid and in effect, would not have a Material Adverse Effect.

     3.12 Intellectual Property Rights.

          (a) Intellectual Property Agreements. Schedule 3.12(a) sets forth a
complete and accurate list of all material agreements relating to the Intellectual Property Assets
to which the Company is a party on the date hereof or by which the Company is bound on the date
hereof, except for (i) any license implied by the sale of a product and (ii) perpetual, paid-up
licenses for software programs with an individual value of less than $10,000 per license under
which the Company is the licensee. There are no outstanding or, to Sellers’ Knowledge, threatened
disputes with respect to any such agreement. No such agreement permits termination by the other
party in the event of a change in the control of Seller.

          (b) Rights in Intellectual Property.

               (i) In General. Except as set forth on Schedule 3.12(b)(i), neither Sellers
nor any of their Affiliates, nor, to Sellers’ Knowledge, any other Person owns or controls any
Intellectual Property Assets that are material to the operation of the Business as presently
conducted by the Company. Except as set forth on Schedule 3.12(b)(i), the Company is the
owner of all right, title and interest in, or the licensee of, or otherwise has the right to
use, without payment to a third party, the Intellectual Property Assets, free and clear of all
Encumbrances (other than Permitted Encumbrances), except for those payments expressly set forth in
the relevant licenses.

               (ii) Patents. Schedule 3.12(b)(ii) sets forth a complete and accurate list of
all Patents. Except as set forth on Schedule 3.12(b)(ii), no Patent has been or is now
involved in any interference, reissue or reexamination proceeding. Except as set forth on
Schedule 3.12(b)(ii), to Sellers’ Knowledge, the Business, as conducted by Seller, does not
infringe upon or misappropriate the Intellectual Property Rights of any third party.

               (iii) Marks. Schedule 3.12(b)(iii) sets forth a complete and accurate list of
all Marks. All Marks that have been registered with the United States Patent and Trademark Office
are currently in compliance with all formal legal requirements (including the timely
post-registration filing of affidavits of use and renewal applications). Except as set forth on
Schedule 3.12(b)(iii), no Mark has been or is now involved in any opposition or
cancellation proceeding, and, to Sellers’ Knowledge, no such action is threatened with respect to
any of the Marks. Except as set forth on Schedule 3.12(b)(iii), to Sellers’ Knowledge, no
Mark is being infringed by any third party. To Sellers’ Knowledge, none of the Marks used by the
Company infringes any trade name, trademark or service mark of any third party

     3.13 Labor Matters. To Sellers’ Knowledge, the Company is in material compliance with all
Laws applicable to it respecting employment and employment practices, terms and conditions of
employment and wages and hours. Except as set forth on Schedule 3.13, there is no
collective bargaining agreement which is binding on the Company, and to Sellers’ Knowledge, there
is no union organizing effort underway, pending or threatened with respect to

 

 

the Company’s employees. There are no strikes, slowdowns or work stoppages pending between the Company and its
employees. The Company has not engaged in any unfair labor practices as defined in the National
Labor Relations Act and there is no unfair labor practice charge or complaint against the Company
pending or, to Sellers’ Knowledge, threatened before the National Relations Board or any similar
agency.

     3.14 Employees; Employee Related Agreements and Plans; ERISA.

          (a) List of Plans. Set forth on Schedule 3.14(a) is an accurate and
complete list of all Sellers’ Employee Benefit Plans.

          (b) Status of Plans. Each Sellers’ Employee Benefit Plan (including any related
trust) complies in form and is operating in accordance with the requirements of all applicable
Laws, including ERISA and the Code, and each Sellers’ Employee Benefit Plan (in each case,
including any related trust) has been maintained and operated in substantial compliance with its
terms. Except as set forth on Schedule 3.14(b), no complete or partial termination
(described in Section 411(d)(3) of the Code) of any Sellers’ Employee Benefit Plan has occurred or is expected to occur. No Sellers’
Employee Benefit Plan is a plan described in Section 4063(a) of ERISA.

          (c) Liabilities.

               (i) Schedule 3.14(c) identifies each Sellers’ Employee Benefit Plan that constitutes a
“defined benefit plan” as defined in Section 3(35) of ERISA. Neither the Company nor any ERISA
Affiliate thereof has incurred any liability under Title IV of ERISA, including, without
limitation, arising in connection with the termination of any such defined benefit plan of the
Company or any ERISA Affiliate thereof currently or previously covered by Title IV of ERISA, and
the Pension Benefit Guaranty Corporation has not instituted proceedings to terminate any such
defined benefit plan nor do any conditions exist that present a risk of such occurrence. With
respect to each Sellers’ Employee Benefit Plan subject to Title IV of ERISA, Sellers have made
available to Buyer the most recent actuarial report showing the present value of accrued benefits
under such plan, based upon the actuarial assumptions used for funding purposes with respect to
such plan. No Sellers’ Employee Benefit Plan or any trust established thereunder has incurred any
“accumulated funding deficiency” (as defined in Section 302 of ERISA and Section 412 of the Code),
whether or not waived, as of the last day of the most recent fiscal year of each such plan ended
prior to the date hereof; and all contributions required to be made with respect thereto (whether
pursuant to the terms of any Sellers’ Employee Benefit Plan or otherwise) on or prior to the date
hereof have been timely made.

               (ii) Each Sellers’ Employee Benefit Plan which is a “group health plan” (as such term is
defined in Section 5000(b)(1) of the Code or Section 607(1) of ERISA) has been administered and
operated in substantial compliance with the applicable requirements of Part 6 of Subtitle B of
Title I of ERISA and Section 4980B of the Code (“COBRA”), and the Company is not subject to any
liability, including additional contributions, fines, taxes, penalties or loss of tax deduction as
a result of the administration and operation of any such Sellers’ Employee Benefit Plan. No
Sellers’ Employee Benefit Plan which is such a group health plan is a “multiple employer welfare
arrangement,” within the meaning of Section 3(40) of ERISA.

 

 

Each Sellers’ Employee Benefit Plan that is intended to meet the requirements of Section 125 of the Code meets such requirements in all
material respects, and each program of benefits for which employee contributions are provided
pursuant to elections under any Sellers’ Employee Benefit Plan meets the requirements of the Code
applicable thereto.

               (iii) Except as disclosed on Schedule 3.14(c), no Sellers’ Employee Benefit Plan
(other than a plan qualified under Section 401(a) of the Code) provides for post-employment or
retiree health, life insurance and/or other welfare benefits, and the Company has no obligation
under any Sellers’ Employee Benefit Plan to provide any such benefits to any retired or former
employees or active employees following such employees’ retirement or termination of service,
except as required by COBRA or any similar state law. The Company has no unfunded liabilities
pursuant to any Sellers’ Employee Benefit Plan that is not intended to be qualified under Section
401(a) of the Code.

               (iv) The Company has not incurred any liability or civil penalty under Section 409, 502(i) or
502(l) of ERISA or liability for any tax or excise tax arising under Chapter 43 or Section 6652 of
the Code with respect to any Sellers’ Employee Benefit Plan and no event has occurred and no condition or circumstance exists that could reasonably be expected to give
rise to any such liability with respect to any Sellers’ Employee Benefit Plan.

               (v) There are no actions, suits or claims pending or, to Sellers’ Knowledge, threatened
against or with respect to any Sellers’ Employee Benefit Plan or the assets of any such plan (other
than routine claims for benefits and appeals of denied routine claims). No civil or criminal
action brought pursuant to the provisions of Title I, Subtitle B, Part 5 of ERISA is pending or, to
Sellers’ Knowledge, threatened against the Company or, to Sellers’ Knowledge, any fiduciary of any
Sellers’ Employee Benefit Plan with respect to any Sellers’ Employee Benefit Plan. Sellers have
not received any notice that any Sellers’ Employee Benefit Plan or any fiduciary thereof is
presently the direct or indirect subject of an audit, investigation or examination by any
Governmental Authority.

               (vi) Except as shown on Schedule 3.14(c), the Company has no liabilities (actual or
contingent) with respect to any Sellers’ Employee Benefit Plan.

          (d) Contributions. Except as set forth on Schedule 3.14(d), the
Company has made full and timely payment of all amounts required to be paid by it as contributions
or premiums to any Sellers’ Employee Benefit Plan.

          (e) Tax Qualification. Each Sellers’ Employee Benefit Plan intended to be
qualified under Section 401(a) of the Code, as currently in effect, is the subject of a favorable
determination letter issued by the Internal Revenue Service and the remedial amendment period
described in Section 401(b) of the Code applicable to any amendment of any such Sellers’ Employee
Benefit Plan adopted after the date of such letter has not expired. Each trust established in
connection with any Sellers’ Employee Benefit Plan which is intended to be exempt from federal
income taxation under Section 501(a) of the Code, as currently in effect, is the subject of a
favorable determination letter issued by the Internal Revenue Service and the remedial amendment
period described in Section 401(b) of the Code applicable to any amendment of any such Sellers’
Employee Benefit Plan adopted after the date of such letter has

 

 

not expired. Since the date of each most recent determination letter referred to in this paragraph (e), no event has occurred and
no condition or circumstance exists that has resulted or is reasonably likely to result in the
revocation of any such determination letter or that is reasonably likely to adversely affect the
qualified status of any such Sellers’ Employee Benefit Plan or the exempt status of any such trust.

          (f) Employees.

               (i) Schedule 3.14(f)(i) lists (A) all employees of the Company as of the date noted on
such Schedule (which includes any leased employees, contract employees and independent contract
employees), (B) each such employee’s current rate of compensation and (C) each such employee’s job
title. Schedule 3.14(f)(i) also indicates any such person who is absent from work due to a
work-related injury, military service or is on leave under the Family and Medical Leave Act, or is
receiving workers’ compensation or disability compensation.

               (ii) Except as listed in Schedule 3.14(f)(ii): (A) all officers and employees of the
Company are employees at-will, terminable without penalty; (B) there are no
outstanding agreements or arrangements with respect to severance payments; and (C) there are
no agreements requiring the Company to make any payment to any officer, director or employee of the
Company as a result of the transactions contemplated by this Agreement, including any “change in
control” provisions or agreements. Schedule 3.14(f)(ii) lists (x) all employees of the
Company that provide services to any other business conducted by Sellers or their Affiliates and
(y) all employees of the Company whose primary place of employment is not at the principal facility
of the Company.

               (iii) Sellers shall make all payments required under the retention agreements and management
incentive plan listed on Schedule 3.14(f)(ii).

          (g) No Multiemployer Plans. Neither the Company nor any ERISA Affiliate
thereof contributes to or is obligated to contribute, to any Multiemployer Plan or has contributed,
or had an obligation to contribute, to any such plan during the six-year period ending on the
Closing Date.

     3.15 Environmental Matters. Except as provided on Schedule 3.15:

          (a) Compliance. (i) The Company is in compliance in all material respects with all
applicable Environmental Laws, (ii) there are no conditions on the Owned Real Property or the
Leased Real Property that require Remedial Action under any Environmental Law, and (iii) the
Company did not cause or contribute to any conditions on any other property that the Company
previously owned, leased, or otherwise operated (as defined by Environmental Law)or on which the
Company disposed of or arranged for the disposal of Hazardous Substances or Lime Kiln Dust, that
require Remedial Action.

          (b) Claims. There are no pending or, to Sellers’ Knowledge, threatened actions,
suits, claims or proceedings by or before any Governmental Authority or by any Person directed
against the Company that pertain to (i) any Permits, obligations or liabilities under any
Environmental Law or (ii) violations of any Environmental Law.

 

 

          (c) Permits. All Permits required under all applicable Environmental Laws to
entitle the Company to operate and use its assets and to carry on and conduct the Business as
currently conducted by it have been duly obtained or have been applied for and are listed on
Schedule 3.15(c), and the Company has been informed by the Bureau of Alcohol, Tobacco, and
Firearms (“ATF”) that it is authorized by the ATF to continue to possess, purchase, and use
explosives in the manner previously authorized pending re-issuance of the Company’s ATF
license/permit.

          (d) Notice. In the three (3) years preceding the date hereof, or if unresolved, any previous years, the
Company (i) has not received written notice that any existing Permit that was obtained under any
Environmental Law is to be revoked or suspended by any Governmental Authority, (ii) has not
received any written notice of violation of any Environmental Law, or (iii) is not currently
operating or required to be operating under, or subject to, any outstanding compliance order,
decree or agreement pertaining to matters regulated by any Environmental Law.

          (e) Listed Properties. None of the Owned Real Property, Leased Real Property, or,
to Sellers’ Knowledge, other property that the Company previously owned, leased, or otherwise
operated (as defined by Environmental Law) is listed on the National Priorities List pursuant to
the Comprehensive Environmental Response, Compensation, and Liability Act, or on an equivalent
state list of sites required to be investigated or cleaned up under an Environmental Law.

          (f) Hazardous Substances. No Person has treated, stored, disposed of, transported
to, or released (as defined by Environmental Law) any Hazardous Substances or Lime Kiln Dust on or
under any Owned Real Property or Leased Real Property except in material compliance with applicable
Environmental Laws. The Company has not treated, stored, disposed of, arranged for disposal of,
transported to, or released any Hazardous Substance or Lime Kiln Dust on or under any property
other than Owned Real Property or Leased Real Property except in material compliance with then
applicable Environmental Laws.

          (g) Required Notice or Consent. No notice or other filing, consent or approval is
required under any Environmental Law as a prerequisite to the transfer of the Sale Shares to Buyer.

     3.16 Bank Accounts. Schedule 3.16 lists all bank, money market, savings and
similar accounts and safe deposit boxes of the Company, specifying the account numbers and the
authorized signatories or persons having access to such accounts or safe deposit boxes.

     3.17 Material Contracts. Schedule 3.17 sets forth a list of all currently
effective Applicable Contracts of the Company, including those in the following categories: (a)
each Contract providing for a partnership, joint venture, teaming or similar arrangement between
the Company and any other person or entity or entities to share in the profits or losses of any
parties thereto, (b) each Contract (i) under which the Company has created, incurred, assumed or
guaranteed Indebtedness or (ii) whereby the Company has an obligation to make an investment in or
loan to any Person, (c) each Contract for the purchase by the Company of goods and/or services
involving total annual payments in excess of $10,000, (d) each Contract for the sale by

 

 

the Company of goods and/or services involving total annual revenues in excess of $10,000, (e) each Contract,
containing covenants materially restricting or limiting the freedom of the Company to engage in any
line of business, (f) each Contract that includes “take or pay”, “meet or release”, “most favored nations” or similar pricing
or delivery arrangements involving annual payments or receipts in excess of $10,000, (g) each
Contract that was entered into outside the ordinary course of business, (h) each Contract that
extends for a term more than twelve (12) months from the Closing Date (unless terminable without
payment or penalty upon no more than thirty (30) days notice), or (i) each Contract between the
Company and an Affiliate that cannot be terminated by the Company on thirty (30) days or less
notice without penalty. Except as set forth on Schedule 3.17, (1) each such Contract is
(A) a valid and binding obligation of the Company and (B) to Sellers’ Knowledge, a valid and
binding obligation of each other party thereto, and (2)(A) the Company is not in material breach
thereof or material default thereunder (and to Sellers’ Knowledge, no event or circumstance has
occurred that with notice or lapse of time or both, would constitute an event of default) and (B)
to Sellers’ Knowledge, no other party to any such Contract is in material breach thereof or
material default thereunder. The Company has not agreed to indemnify any director, officer, or
employee, whether by agreement, charter provision, bylaw provision or resolution, against any Loss
or liability whatsoever, pursuant to which the Company may be liable to any such individual.

     3.18 Brokers, Finders, Etc. Except as set forth on Schedule 3.18, neither Sellers
nor any Affiliate of Sellers has employed, nor is any of them subject to any valid claim of
liability or obligation to, any broker, finder, consultant or other intermediary in connection with
the transactions contemplated by this Agreement who might be entitled to a fee or commission in
connection therewith. Sellers are solely responsible for any payment, fee or commission that may
be due to the parties listed on Schedule 3.18 in connection with the transactions
contemplated hereby.

     3.19 Insurance.

          (a) Policies. Schedule 3.19(a) sets forth a list of the policies of
insurance currently maintained by or on behalf of the Company or O-N Minerals with respect to the
products, properties, assets, operations and business of the Company (including any policies of
insurance maintained for purposes of providing benefits such as workers’ compensation and
employers’ liability coverage). Subject to Section 6.4, all such policies are in full
force and effect. All premiums due on such policies have been paid and no notice of cancellation
or termination or intent to cancel has been received by Sellers or the Company with respect to such
policies.

          (b) Claims. Schedule 3.19(b) sets forth a list of all pending claims
(including with respect to insurance obtained but not currently maintained) and the claims history
for the Company during the three (3) years preceding the date hereof.

          (c) Post-Closing Litigation and Claims Costs. Sellers’ general liability
insurance provider has not denied coverage for the litigation listed on Schedule 3.10 and
has taken up and, to Sellers’ Knowledge, will continue, the defense of the two cases listed on such
Schedule. Sellers workers compensation insurance provider is providing coverage for the
workers compensation claims listed on Schedule 3.19(b) and, to Sellers’ Knowledge,
will

 

 

continue to do so. Except to the extent covered by accruals in current liabilities for the
calculation of Closing Net Working Capital, Sellers and Buyer agree that any moneys reasonably
required to be paid by the Company or the Buyer after the Closing Date relating to the defense
and/or settlement (including insurance deductibles) of the litigation listed on Schedule
3.10 or the claims listed on Schedule 3.19(b), will be reimbursed by Sellers to Buyer
within ten (10) Business Days after Buyer presents proof of such payments or, in the event Sellers
fail to make any such payment, Buyer may make a claim for such amounts pursuant to the Escrow
Agreement.

     3.20 Inventories. Except as disclosed on Schedule 3.20, the inventories reflected
in the Financial Statements were classified as current assets in accordance with GAAP. Except as
disclosed on Schedule 3.20, all items of inventory reflected on the Balance Sheet, or
thereafter acquired by the Company (and not subsequently disposed of in the ordinary course of
business or appropriately reserved for on the Balance Sheet), are of a quality and quantity which
are saleable and/or useable in the ordinary course of business within one year of the Closing Date.
Except as indicated on Schedule 3.20, no inventories of the Company have been consigned to
the Company or are otherwise owned by a third party.

     3.21 Product Liability. Except as set forth on Schedule 3.21, there is no
currently pending, or to Sellers’ Knowledge threatened, material claim for product liability,
warranty, material backcharge, material additional work, field repair or other claims against the
Company by any third party arising from: (a) services rendered by the Company, (b) the sale or
distribution of products by the Company or (c) the manufacture of products by the Company.

     3.22 Significant Customers and Suppliers. Except as set forth in Schedule 3.22,
none of the fifteen (15) largest customers or suppliers of the Company (measured by value of net
sales or purchases, respectively) during the period ended on the Closing Date has terminated,
canceled or limited or made any materially adverse modification or change in, its business
relationship with the Company or, to Sellers’ Knowledge, threatened to do so.

     3.23 Accounts Receivable. All accounts receivable of the Company that are reflected on the
Balance Sheet or on the Closing Balance Sheet (collectively, the “Accounts Receivable”) represent
valid obligations arising from sales actually made or services actually performed in the ordinary
course of business. Schedule 3.23 contains a complete and accurate list of all Accounts
Receivable as of November 30, 2005, which list sets forth the aging of such accounts receivable.

     3.24 Disclosure. No representation or warranty of Sellers in this Agreement and no statement in the Schedules
hereto omits to state a material fact necessary to make the statements herein or therein, in light
of the circumstances in which they were made, not misleading.

 

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

     As an inducement to Sellers to enter into this Agreement and consummate the transactions
contemplated hereby, Buyer represents and warrants to Sellers, as follows:

     4.1 Organization. Buyer is a corporation validly existing and in good standing under the
Laws of its state of incorporation or formation, and has the corporate power and authority to own,
operate or lease its properties, carry on its business, enter into this Agreement and to perform
its obligations hereunder.

     4.2 Authorization; Enforceability. This Agreement has been duly and validly authorized by
all necessary corporate and other actions by Buyer and constitutes the legal, valid and binding
obligations of Buyer enforceable against it in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium and other Laws of general application relating to or affecting creditors’
rights and to general principles of equity.

     4.3 No Violation of Laws; Consents. Neither the execution and delivery of this Agreement,
the consummation of the transactions contemplated hereby nor the compliance with or fulfillment of
the terms, conditions or provisions hereof by Buyer will: (i) violate any provision of the
Governing Documents of Buyer or (ii) violate any Law to which Buyer is subject or by which any of
its assets may be bound or affected the result of which would have a Material Adverse Effect on the
financial condition, operation or business of Buyer. No consent, approval or authorization of, or
registration or filing with, any Person is required in connection with the execution or delivery by
Buyer of this Agreement or the consummation by Buyer of the transactions contemplated hereby.

     4.4 No Pending Litigation or Proceedings. No Litigation is pending against or affecting
or, to the knowledge of Buyer, threatened against Buyer in connection with any of the transactions
contemplated by this Agreement. There is presently no outstanding judgment, decree or order of any
Governmental Authority against or affecting Buyer in connection with the transactions contemplated
by this Agreement.

     4.5 Brokers, Finders, Etc. Neither Buyer nor any of its Affiliates have employed, nor are
any of them subject to any valid claim of liability or obligation to, any broker, finder,
consultant or other intermediary in connection with the transactions contemplated by this Agreement who might be entitled to a fee or
commission in connection therewith.

     4.6 Investment. Buyer is purchasing the Sale Shares for investment for its own account,
and not with a view to, or for the offer or sale in connection with, any distribution thereof.
Buyer acknowledges that the Sale Shares have not been registered under the Securities Act of 1933,
as amended (the “Securities Act”), or any state securities Laws, and that the Sale Shares may not
be transferred or sold except pursuant to the registration provisions of the Securities Act and any
applicable state securities Laws or pursuant to an applicable exemption therefrom.

 

 

     4.7 Financial Ability Buyer has the financial ability to consummate the transactions
contemplated by this Agreement without any delay or restriction which would adversely impact the
certainty of Buyer’s ability to so consummate. Buyer has furnished to Seller all documentation or
other evidence of such financial ability that has been requested by Seller.

ARTICLE V

[Intentionally Left Blank]

ARTICLE VI

ADDITIONAL AGREEMENTS

     6.1 Use of Names. Notwithstanding any provision of Section 3.12 to the contrary,
except for the name “St. Clair”, which O-N Lime hereby assigns, and delivers to Buyer, no Seller is
conveying any ownership rights to Buyer or the Company for, or licensing Buyer or the Company to
use, any of the trade names, trademarks or Internet domain names of Sellers or any of their
respective Affiliates, including the rights to the name “Oglebay Norton”, “ONCO”, “O-N”, “Global
Stone” or any derivation or variation thereof or any corporate name which includes the foregoing
names, including those names (all such names together the “Reserved Names”) and after the Closing:

          (a) Buyer shall promptly (but in no event later than sixty (60) days after the
Closing) destroy all stocks of written, printed or other graphic materials in its possession or
control that use or embody any names or marks of Sellers or any of its Affiliates, including the
Reserved Names, or modify such materials to remove or cover over any such names or marks;

          (b) Buyer shall promptly (but in no event later than thirty (30) days after the
Closing) remove or cause to be removed any links from the Company’s websites on the World Wide Web
to any website maintained by or on behalf of Sellers or its Affiliates and cease the use of any
metatags utilizing any Reserved Name or any confusingly similar word or phrase to direct traffic to
a website not owned by the owner of the Reserved Names; and

          (c) Buyer shall promptly (but in no event later than seven (7) days after the Closing)
(i) file the change of corporate name of the Company (which new name shall not
include any Reserved Names) with the appropriate Governmental Authorities and (ii) promptly
thereafter file requests to have the Permits issued or re-issued in such new corporate name of the
Company.

     6.2 Tax Matters.

          (a) Liability for Taxes.

               (i) Sellers shall be liable for and, pursuant to Article VIII, Sellers shall indemnify
and hold harmless the Buyer and the Company against all Taxes (whether assessed or unassessed)
applicable to the Company (1) attributable to a Pre-Closing Period, including the portion of any
Straddle Period ending on the Closing Date or (2) pursuant to Treas. Reg. §1.1502-6 (or any
comparable provision under state or local Law imposing several liability upon members of a
consolidated, combined, affiliated or unitary group) for any Pre-Closing Period; provided,
however, that Sellers shall not be liable for (w) any Taxes (other than Income Taxes)

 

 

to the extent accrued on the Closing Balance Sheet; (x) any Taxes imposed on the Company as a result
of transactions occurring on the Closing Date that are properly allocable to the portion of the
Closing Date after the Closing; (y) any interest or penalties attributable to the negligence, delay
or bad faith of Buyer or its Affiliates; and (z) any interest or penalties imposed or assessed, or
losses incurred, to the extent attributable to Buyer’s or its Affiliates’ late filing of any Tax
Return or late payment of any Taxes. Sellers shall be entitled to any refund of (or credit for)
Taxes allocable to any Pre-Closing Period. Buyer or the Company shall pay over to Sellers any such
refund or the amount of any credit within fifteen (15) days after receipt.

               (ii) Buyer shall be liable for and, pursuant to Article VIII, Buyer shall indemnify
and hold harmless Sellers and its Related Parties against all Taxes (whether assessed or
unassessed) applicable to the Company (A) attributable to (1) taxable years or periods beginning
after the Closing Date, (2) transactions occurring on the Closing Date that are properly allocable
to the portion of the Closing Date after the Closing, and (3) with respect to any Straddle Period,
the portion of such Straddle Period beginning after the Closing Date or (B) to the extent such
Taxes (other than Income Taxes) are accrued on the Closing Balance Sheet. Except as otherwise
provided herein, Buyer shall be entitled to any refund of (or credit for) Taxes allocable to any
taxable year or period that begins after the Closing Date and, with respect to any Straddle Period,
the portion of such Straddle Period beginning after the Closing Date.

               (iii) For purposes of Section 6.2(a)(i) and Section 6.2(a)(ii), whenever it is
necessary to determine the liability for Taxes for a Straddle Period, the determination of the
Taxes for the portion of the Straddle Period ending on and including, and the portion of the
Straddle Period beginning after, the Closing Date shall be determined by assuming that the Straddle
Period consisted of two taxable years or periods, one which ended at the close of the Closing Date
and the other of which began at the beginning of the day following the Closing Date, and items of
income, gain, deduction, loss or credit for the Straddle Period shall be allocated between such two
(2) taxable years or periods by assuming that the relevant books were closed at the close of the
Closing Date; provided, however, that (A) transactions occurring on the Closing
Date that are properly allocable to the portion of the Closing Date after the Closing shall be
allocated to the taxable year or period that is deemed to begin at the beginning of the day
following the Closing Date, and (B) exemptions, allowances or deductions that are
calculated on an annual basis, such as the deduction for depreciation, shall be apportioned
between such two (2) taxable years or periods on a daily basis and Taxes that are computed on a
periodic basis, such as property Taxes, shall also be so apportioned on a daily basis. Sales and
use Taxes shall be deemed to accrue in accordance with GAAP.

               (iv) Sellers or Buyer, as the case may be, shall provide reimbursement for any Tax paid by one
Party all or a portion of which is the responsibility of the other Party in accordance with the
terms of this Section 6.2(a). Within a reasonable time prior to the payment of any such
Tax, the Party paying such Tax shall give written notice to the other Party of the Tax payable and
the portion which is the liability of each Party, although failure to do so will not relieve the
other Party from its liability hereunder.

 

 

          (b) Tax Returns.

               (i) Sellers shall prepare, execute and timely file, or cause to be prepared, executed and
timely filed in a manner consistent with past practice, all federal and state income Tax Returns of
the Company with respect to any taxable period ending prior to or ending on and including the
Closing Date.

               (ii) Except as provided in Section 6.2(b)(i), Buyer shall have the exclusive authority
and obligation to prepare and timely file, or cause to be prepared and timely filed, all Tax
Returns for the Company that relate to taxable periods ending after the Closing Date. With respect
to any such Tax Return which includes a Pre-Closing Period for which Sellers may be required to
indemnify Buyer under Article VIII, Buyer shall provide Sellers with draft copies of such
Tax Returns and an opportunity to review and comment on such Tax Returns at least thirty (30) days
prior to the date for filing such Tax Returns. Buyer shall in good faith take into account such
comments in its preparation of such Tax Returns.

          (c) Tax Audits.

               (i) Buyer shall promptly notify Sellers in writing upon receipt by Buyer or any of its
Affiliates of notice of any pending or threatened federal, state or local Tax audits, examinations,
notices of deficiency or other adjustments, assessments or redeterminations (“Tax Matters”)
relating to a Pre-Closing Period for which Sellers may be liable to indemnify Buyer under
Article VIII. In the event that Buyer fails to notify Seller with respect to a Tax Matter
in accordance with the provisions of this Section 6.2(c)(i), Seller shall not be obligated to
indemnify Buyer under Article VIII of this Agreement with respect to such Tax Matter to the extent
that such failure to notify Seller adversely affects Seller’s ability to adequately defend against
such Tax Matter.

               (ii) Sellers shall have the sole right to control, contest, resolve and defend against any Tax
Matters or initiate any claim for refund or amend any Tax Return relating to the Income Taxes of
the Company for Pre-Closing Periods, in each case provided Sellers are obligated to indemnify Buyer
for such Income Taxes (or a portion of such Income Taxes with respect to a Straddle Period) under
Article VIII, and to employ counsel of its choice at its own expense; provided,
however, that (A) Sellers shall keep Buyer informed with respect to the commencement,
status and nature of any such Tax Matter, (B) neither Sellers nor the ultimate
parent entity filing the consolidated return that is the subject of such Tax Matter nor any of
their respective Affiliates shall enter into any settlement of or otherwise compromise any such Tax
Matter which adversely affects the Tax liability of Buyer, the Company or any Affiliate of either
of them (to the extent Buyer, the Company or any Affiliate of either of them may be required to
make any payment for such Tax liability that is not fully indemnified by Sellers pursuant to the
terms hereof) without the prior written consent of Buyer, which consent shall not be unreasonably
withheld or delayed, and (C) Sellers may decline to control any Tax Matters by providing Buyer with
written notice of such decision.

               (iii) Except as otherwise provided in Section 6.2(c)(ii) and except with respect to
federal or state Income Taxes, Buyer shall have the sole right to control any Tax Matters relating
to the Company, and to employ counsel of its choice at its own expense;

 

 

provided, however, that (A) Buyer shall keep Sellers informed with respect to the commencement,
status and nature of any Tax Matter for which Sellers may be liable pursuant to Article
VIII, and (B) neither Buyer nor any of its Affiliates shall enter into any settlement of or
otherwise compromise any Tax Matter for which Sellers are required to indemnify Buyer hereunder
without the prior written consent of Sellers, which consent shall not be unreasonably withheld or
delayed.

     (d) Assistance and Cooperation. After the Closing Date, each of Seller and
Buyer shall (and shall cause their respective Affiliates, including the Company, to):

               (i) assist the other Party in preparing any Tax Returns which such other Party is responsible
for preparing and filing in accordance with Section 6.2(b);

               (ii) upon reasonable notice and without undue interruption to the business of such Party or
the Company, provide access during normal business hours to the books and records of such Party
relating to the Taxes of the Company prior to the Closing Date;

               (iii) furnish the other with copies of all correspondence received from any taxing authority
in connection with any Tax Matter or information request with respect to any taxable period for
which the other may have a liability under this Section 6.2; and

               (iv) timely provide to the other powers of attorney or similar authorizations reasonably
necessary to carry out the purposes of this Section 6.2.

          (e) Disputes. If the Parties disagree as to the calculation of any amount
relating to Taxes governed by this Section 6.2, the Parties shall promptly consult with
each other in an effort to resolve the disagreement. If any such disagreement is not resolved
within 30 days after either Party gives the other written notice that it cannot be resolved, the
Parties shall jointly select a firm of nationally recognized independent accountants to resolve the
disagreement. Such firm’s determination shall be final, binding and conclusive on the Parties, and
any expenses relating to the engagement of such firm shall be shared equally by the Parties.

          (f) Purchase Price Adjustment. Any payment by Buyer or Sellers to or on
behalf of the other under this Section 6.2 will be an adjustment to the Purchase Price.

          (g) Section 338 Election. At the option of Buyer, Sellers and the Company
shall join with Buyer in making an election under Section 338(h)(10) of the Code with respect to
the purchase and sale of the Sale Shares hereunder (a “Section 338(h)(10) Election”). Buyer shall
be responsible for, and control, the preparation and filing of such election. The Company and
Sellers shall execute and deliver to Buyer such documents or forms as Buyer reasonably shall
request or as are required by Law for an effective Section 338(h)(10) Election. Buyer, the Company
and the Sellers shall report the purchase and sale of the Sale Shares consistent with such election
and shall take no position contrary thereto on any Tax Return.

     6.3 Employees and Plans.

          (a) Notice to Employees. Subject to the provisions of this Section 6.3, on
or prior to the Closing Date, Buyer and Sellers shall jointly give notice to all employees who are

 

 

then employed by the Company (the “Affected Employees”) that all benefits previously provided to
the Affected Employees under the Sellers’ Employee Benefit Plans are discontinued on the Closing
Date with respect to such Affected Employees and will be replaced by the employee benefit plans of
the Buyer (the “Buyer Benefit Programs”). Effective as of the Closing Date, Sellers shall cause
the Company to withdraw from and cease to be an employer under each Sellers’ Employee Benefit Plan.

          (b) Credit for Prior Service. Buyer agrees that the Affected Employees shall be
credited with their length of service with the Company and Sellers and its Affiliates under the
policies of the Buyer and for all purposes under the Buyer Benefit Programs (other than for
purposes of benefit accrual under a pension plan as defined in Section 3(2) of ERISA and early
retirement subsidies under a defined benefit plan as defined in Section 3(35) of ERISA) after the
Closing.

          (c) Vacation. Buyer shall take responsibility for and cause to be paid in the
normal course of business the vacation pay of all Affected Employees for all days of vacation to
which each such employee was entitled under Sellers’ or the Company’s vacation pay policy as of the
Closing Date. For purposes of computing eligibility for and the amount of vacation or holiday pay
of Affected Employees to be accrued after the Closing under Buyer’s vacation and holiday policies,
employment of such employees by the Company or Sellers or any of its Affiliates prior to Closing
shall be taken into account to the same extent as if it had been employment by the Company or
Buyer.

          (d) Existing Claims. Sellers shall retain the responsibility for payment of all
covered medical and dental claims or expenses actually incurred by any employee (or covered
dependent of any employee) of the Company prior to the Closing Date and Buyer shall not assume nor
shall Buyer or the Company be responsible for any liability with respect to such claims or
expenses.

          (e) COBRA. From and after the Closing, Sellers shall be responsible for providing any employee or former
employee of the Company and any “qualified beneficiaries” of any such person with COBRA
continuation coverage to the extent required by Law for the Company employee, former employee or
qualified beneficiary, if the qualifying event of such a Person occurs before the Closing Date.

          (f) Disability. Buyer will assume the responsibility for any short-term or
long-term disability benefits for all Affected Employees actively at work as of the Closing Date.
Sellers shall retain responsibility for any long-term disability benefits for any employee of the
Company who had qualified for long-term disability benefits as of the Closing Date and for any
long-term disability benefits for any employee of the Company who had qualified for short-term
disability benefits as of the Closing Date and who subsequently qualifies for long-term disability
benefits as a consequence of the same injury or disability.

          (g) WARN Act. Buyer shall be responsible for all liabilities or obligations under
the WARN Act resulting from Buyer’s or the Company’s actions following the Closing.

 

 

          (h) Sellers 401(k) Plan. Upon the withdrawal of the Company from the Sellers
401(k) Plan, Sellers shall cause the balances of all such participants in the Sellers 401(k) Plan
who are Affected Employees to be fully vested and distributions of the vested balances of all such
participants shall be made in accordance with ERISA and the Code and the terms of the Sellers’
401(k) Plan. Sellers and Buyer agree to provide each other with such records and information as
they may reasonably request relating to this Section 6.3 or the administration of the
Sellers 401(k) Plan.

     6.4 Insurance.

          (a) Termination by Sellers. Effective as of the Closing Date, Sellers shall cause
the termination of all insurance coverage relating to the Company (other than any reclamation bonds
purchased), the Business and the Company’s current or former employees and directors under
applicable policies of insurance. Buyer shall cause any reclamation bonds in place on the Closing
Date to be replaced within forty five (45) days after the Closing Date. Sellers shall provide
reasonable assistance to enable Buyer to do so. Twenty (20) days after the Closing Date, if such
reclamation bonds have not been replaced by Buyer, Buyer shall compensate O-N Lime for any costs
and expenses, including related interest expenses, incurred by any Seller in connection with such
reclamation bonds.

          (b) Information. To the extent that after the Closing a Party requires any
information from another Party regarding claim data, payroll or other information in order to make
filings with insurance carriers or self-insurance regulators, such other Party shall promptly
supply such information.

     6.5 No Public Announcement. Neither Buyer, Sellers nor their respective Affiliates shall,
without the written approval of the other Party, make any press release or other public
announcement concerning the transactions contemplated by this Agreement, except as and to the
extent that any such Person shall be so obligated by Law, in which case the other Party to this
Agreement shall be advised and the Parties shall use their best efforts to cause a mutually
agreeable release or announcement to be issued; provided, however, that the
foregoing shall not preclude communications or disclosures necessary to implement the provisions of
this Agreement or to comply with applicable accounting and disclosure obligations of any
Governmental Authority or the rules of any securities exchange.

     6.6 Expenses. Each of the Parties shall bear all of their own expenses in connection with
the negotiation and closing of this Agreement and the transactions contemplated hereby, including
the fees, expenses and disbursements of its counsel, investment bankers and independent public
accountants.

     6.7 Covenant Not to Compete; Covenant Not to Solicit.

          (a) During the Non-Competition Period, the Non-Competition Parties and their
respective Affiliates, whether currently or in the future in that relationship, shall not (and
shall cause each other Non-Competition Party not to), directly or indirectly own, manage, operate
or control any business engaged in the sale of the Non-Competition Products in the Territory in
competition with the business activities conducted by the Company (a “Competitive

 

 

Business”); provided, however, that the foregoing covenants shall not prohibit, or be
interpreted as prohibiting, any Non-Competition Party from:

               (i) entering into any relationship with a Person not owned, managed, operated or controlled by
any Non-Competition Party for purposes unrelated to a Competitive Business; or

               (ii) making equity investments in publicly owned companies which conduct a Competitive
Business, provided such investments do not confer control of any such Competitive Business upon any
Non-Competition Party.

     If a Seller and an Affiliate thereof terminate their relationship that causes one to cease to
be an Affiliate of the other, such Seller shall obtain an agreement in writing with the Affiliate
that such Affiliate will adhere to the terms of this Section after such termination.

          (b) Until the second anniversary of the Closing Date, neither Sellers nor any of their
respective Affiliates shall, directly or indirectly, solicit for employment, or induce or encourage
to leave employment with the Company, whether as an employee, consultant, contractor or otherwise,
any employee of Company on the date hereof; provided, however, that the foregoing
provision will not prevent Sellers or any of their respective Affiliates from (i) with the consent
of Buyer, employing any such employee in response to a general solicitation of
employment made by Sellers or such Affiliate in a trade journal or other publication not
specifically targeted at any employee of the Company, or (ii) hiring James Underwood upon the
expiration of six (6) months from the date hereof.

     6.8 Further Assurances and Cooperation. Sellers shall, at any time and from time to time
on and after the Closing Date, upon request by Buyer and without further consideration, take or
cause to be taken such actions and execute, acknowledge and deliver, or cause to be executed,
acknowledged and delivered, such instruments, documents, transfers and conveyances as may be
required for the better conveying, transferring, assigning and delivering of the Sale Shares to
Buyer.

     6.9 Regarding Accounting, Financial Statements, and SEC Reporting. After the Closing:

          (a) Sellers shall (and shall cause their respective Affiliates to) provide reasonable
assistance to the Buyer and the Company in preparing the 2005 audited financial statements of the
Company as necessary for or required by Securities and Exchange Commission (“SEC”) rules and
regulations, which Buyer is responsible for preparing and filing;

          (b) Sellers shall (and shall cause their respective Affiliates to) upon reasonable
notice, provide to Buyer access during normal business hours to the books, records, and financial
statements of the Sellers (and their respective Affiliates) and the Company relating to the Company
for the calendar year period prior to and including the Closing Date; and

          (c) Buyer shall (and shall cause its Affiliates, including the Company, to) upon
reasonable notice, provide to Sellers access during normal business hours to the books,

 

 

records, and financial statements of the Company relating to the period prior to and including the Closing
Date for any legitimate business purpose.

     6.10 Indemnification. Each Seller agrees that the Company’s Governing Documents shall be
amended, to the extent necessary, so that no indemnification or advancement or payment of expenses
shall thereafter be required to be paid by the Company to Sellers and/or their Affiliates for
events or matters that occurred before or occur after the Closing Date. Each Seller agrees to
maintain in effect insurance to the extent that it is now carried payable to such Persons for such
events or matters and to indemnify and hold harmless Buyer and the Company and their Affiliates for
any damages, costs, or expenses arising therefrom.

     6.11 Consents. Subject to any specific limitation herein described, Sellers and Buyer shall
each use their reasonable best efforts to obtain and to cooperate with each other in order to
obtain all consents, approvals and authorizations, and to make all registrations and filings
(including, without limitation, all filings with any Governmental Authorities) lawfully required to
be obtained from or filed with all applicable Governmental Authorities in connection with Sellers’
and Buyer’s execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby.

     6.12 Groundwater Monitoring Program. Sellers shall be liable for and, pursuant and subject
to Article VIII, shall indemnify and hold harmless Buyer against all Losses of the Company
associated with any corrective action required by the Oklahoma Department of Environmental Quality
(“DEQ”) in response to the groundwater monitoring program the DEQ is requiring as a condition to
issuance of the Oklahoma Pollutant Discharge Elimination System (“OPDES”) wastewater discharge
permit; provided, however, that Buyer shall assume liability (a) for the costs of
developing and installing the groundwater monitoring plan, (b) for performing monitoring of the
groundwater in compliance with the OPDES wastewater discharge permit, and (c) arising from Buyer’s
failure to comply with Law or the terms of such permit after the Closing Date. The Company’s
continued use of the surface impoundments in substantially the same manner as currently conducted
shall not be deemed a failure to comply with Law or the terms of such permit.

     6.13 Accounts Receivable. Sellers will promptly pay over to Buyer when received all monies
received by Sellers (or any applicable Affiliate) after the Closing with respect to any Accounts
Receivable.

     6.14 Infringement Liability. Seller shall be liable for and, pursuant to Article
VIII, Seller shall indemnify and hold harmless the Buyer against all Losses related to the
Company’s liability or obligations under any intellectual property law (“IP Liability”) (whether
assessed or unassessed) arising from or in connection with:

     (a) IP Liability arising out of or relating to the ownership or operation of the
Business by Seller at any time on or prior to the Closing Date.

     (b) Seller and Buyer agree to cooperate in connection with any indemnification claims
under this Section 6.14 and Article VIII.

 

 

     6.15 Trapezoid Parcel. Sellers at their expense, shall use their commercial best efforts to
obtain good and marketable title in the Company’s name to the Trapezoid Parcel. If such title is
not obtained prior to the second anniversary of the Closing Date, then $25,000 shall immediately be
distributed under the Escrow Agreement to Buyer without offset (whether such amount is paid to
Buyer pursuant to this provision or under Article VIII hereof), which amount shall be in
full and final settlement of all claims by Buyer against Sellers in respect of title to the
Trapezoid Parcel, other than those dealt with in the remaining sentences of this Section. In the
event that, after the payment of such amount to Buyer, the Company obtains good and marketable
title to the Trapezoid Parcel, Buyer shall return such amount to Sellers, less Buyer’s costs of
obtaining title. Sellers shall indemnify and hold harmless Buyer (without offset or reduction
under Article VIII hereof) against all Losses incurred by the Company in connection with
any formal written request initiated by a third party seeking the removal of Lime Kiln Dust from the Trapezoid Parcel
deposited prior to the Closing Date. Buyer shall (a) be liable for any Losses arising from such
deposits made after the Closing Date and (B) cooperate and assist Sellers in a reasonable manner in
the identification and potential use of an appropriate disposal site for such Lime Kiln Dust,
including making available, without charge, any appropriate disused mine or other redundant
property of the Company.

     6.16 Master Lease and License Arrangements. Anything in this Agreement to the contrary
notwithstanding, this Agreement and the transactions contemplated hereby shall not constitute an
agreement to convey any rights under the Master Leases and Licenses or any claim or right or any
benefit arising thereunder or resulting therefrom, without the consent of the applicable financing
party or lessor thereto, if such agreement would constitute a breach or other contravention of the
Master Leases and Licenses or in any way adversely affect the rights of Sellers (or the applicable
Affiliate of Sellers) thereunder. Prior to the date hereof, Buyer has sought, and expects to
obtain in the near future, satisfactory terms for the continued use by the Company of the assets
subject to the Master Leases and Licenses and pending the execution of the definitive documents
embodying such terms, Sellers and Buyer will cooperate in a mutually agreeable arrangement under
which the Company would obtain the benefits and assume the obligations under the Master Leases and
Licenses in accordance with this Agreement, including subcontracting, sublicensing, or subleasing
to the Company, or under which Sellers (or the applicable Affiliate) would enforce for the benefit
of the Company, with Buyer assuming Sellers’ (or the applicable Affiliate’s) obligations, and any
and all rights of Sellers (or the applicable Affiliate) against the applicable financing party or
lessor. After the Closing, Buyer shall indemnify and hold harmless Sellers from any failure of the
Company to discharge any liability or obligation to Sellers under the foregoing arrangement.
Buyer agrees to use its best efforts to promptly obtain the consent of the applicable financing
party or lessor under the Master Leases and Licenses to the continued use by the Company of the
underlying assets subject thereto.

     6.17 Defense of Certain Disclosed Litigation and Claims. Sellers will be responsible for
coordinating the defense for the two litigation cases listed on Schedule 3.10, including
consultation and coordination with the Sellers’ general liability insurance provider, and Buyer
will provide cooperation as reasonably requested by Sellers. Sellers will provide advance notice
to Buyer of any settlement or other hearings involving such litigation cases for which it is
anticipated that settlement costs would exceed $25,000. After the Closing Date, Buyer will be
responsible for the defense of all the workers’ compensation claims listed on Schedule
3.19(b), including consultation and coordination with the Sellers’ workers compensation
insurance

 

 

provider, and Sellers will provide cooperation as reasonably requested by Buyer. Buyer
will provide full written information to Sellers relating to such matters in advance of any
settlement or other hearings of any such claims for which it is anticipated that settlement costs
would exceed $25,000. No such claim shall be settled or compromised for an amount in excess of
$25,000 without the written consent of Sellers, which consent shall not be unreasonably withheld.

ARTICLE VII

CONDITIONS TO CLOSING

     7.1 Conditions Precedent to Obligation of Buyer. The obligation of Buyer to proceed with
the Closing under this Agreement is subject to the fulfillment prior to or at the Closing of the
following conditions, any one or more of which may be waived in whole or in part by Buyer:

          (a) Orders; Litigation. No statute, regulation or order of any Governmental
Authority shall be in effect that restrains or prohibits the transactions contemplated hereby, and
no proceeding shall have been commenced that restrains or prohibits the consummation of all or any
portion of the transactions contemplated hereby.

          (b) Share Certificates and Instruments of Transfer. Sellers shall have delivered
to Buyer stock certificates representing all of the Sale Shares and shall have executed,
acknowledged and delivered to Buyer such instruments of transfer of the Sale Shares as shall be
reasonably requested by Buyer to vest in Buyer all right, title and interest in and to the Sale
Shares.

          (c) Other Documents. Sellers shall have delivered to Buyer all other documents
referenced hereunder.

     7.2 Conditions Precedent to Obligation of Sellers. The obligation of Sellers to proceed
with the Closing under this Agreement is subject to the fulfillment prior to or at Closing of the
following conditions, any one or more of which may be waived in whole or in part by Sellers:

          (a) Orders; Litigation. No statute, regulation or order of any Governmental
Authority shall be in effect that restrains or prohibits the transactions contemplated hereby, and
no proceeding shall have been commenced that restrains or prohibits the consummation of all or any
portion of the transactions contemplated hereby.

ARTICLE VIII

INDEMNIFICATION

     8.1 Survival of Representations, Warranties, Covenants and Agreements. Subject to the
provisions of this Article VIII, the representations and warranties of Sellers contained in
Article III and those of the Buyer contained in Article IV and the covenants and
agreements of the Parties contained in this Agreement shall survive the Closing (and any

 

 

investigation by the Parties with respect to such representations and warranties) but shall
terminate and be of no further force or effect upon the expiration of twenty-four (24) months from
the Closing Date and no claims shall be made by any Indemnified Party (as hereinafter defined)
under this Section 8.1 thereafter. Notwithstanding the foregoing, (a) any such
representation or warranty as to which a claim relating thereto is asserted in writing (which
states with specificity the basis therefor) in accordance with Section 8.3 during such
survival period shall, with respect to such claim, continue in force and effect beyond such
survival period pending resolution of such claim, (b) the representations and warranties of Sellers
set forth in the second sentence of Section 3.2 (Authorization), Section 3.3(a)
(Capitalization), and Section 3.3(b) (Title), shall survive forever, (c) the
representations and warranties of Sellers set forth in Section 3.7 (Taxes), the covenants
of Sellers and Buyer set forth in Section 6.2 (Taxes) and Section 3.14 (Employees;
Employee Related Agreements and Plans; ERISA) shall survive until the expiration of the relevant
statutory period of limitations applicable to the underlying claims (provided,
however, that neither Buyer nor the Company may extend such period by giving any waiver or
agreeing to any extension thereof without the express prior written consent of Sellers), (d) the
representations and warranties of Sellers set forth in Section 3.15 (Environmental Matters)
and the covenants and agreements in Section 6.12 shall survive until the expiration of six
(6) years from the Closing Date, (e) the covenants and agreements in this Article VIII
shall survive the Closing and shall remain in full force and effect for such period as is necessary
to resolve any claim made with respect to any representation, warranty, covenant or agreement
contained in this Agreement during the survival period thereof, and (f) the remaining covenants and
agreements of the Parties contained in Article VI of this Agreement shall survive the
Closing without any contractual limitation on the period of survival unless a limitation on time is
contained in the relevant section, in which case such covenant shall survive for the period of time
so specified. The right to indemnification, payment of Expenses or other remedies based on any
representation, warranty, covenant or agreement contained herein will not be affected by any
investigation conducted with respect to, or any knowledge acquired (or capable of being acquired)
at any time, whether before or after the execution and delivery of this Agreement or the Closing
Date, with respect to the accuracy or inaccuracy or compliance with any such representation,
warranty, covenant or agreement. It is hereby stipulated that Buyer has relied on each and every
representation, warranty, covenant, and agreement contained herein, as qualified by the Schedules
hereto.

     8.2 General Indemnification. Subject to the provisions of Section 8.1:

          (a) Indemnification by Sellers and Buyer. Each of Buyer and each Seller, jointly
and severally, hereby agrees (in such capacity, an “Indemnifying Party” provided, that, the
Sellers, collectively, shall be regarded as one Indemnifying Party hereunder), from and after the
Closing, to indemnify, hold harmless and defend the other Party and its Related Parties (in such
capacity, an “Indemnified Party”) against any Losses that such Indemnified Party shall actually
incur, to the extent that such Losses (or claims, actions, suits or proceedings in respect thereof
and any appeals therefrom, “Proceedings”):

               (i) arise out of or in connection with any breach of or inaccuracy in any representation or
warranty made herein in Article III for the benefit of the Buyer or in Article IV
for the benefit of Sellers; or

 

 

               (ii) arise out of or in connection with any failure to perform any covenant made herein by the
Indemnifying Party for the benefit of the Indemnified Party.

          Notwithstanding the foregoing, the Indemnifying Party shall not have any liability to the
Indemnified Party under this Section 8.2(a) unless and until the aggregate amount of all
Losses exceed one percent (1.0%) of the Purchase Price, in which event only the amount in excess of
one-half of one percent (0.5%) of the Purchase Price shall be recoverable; and the liability of the
Indemnifying Party under this Section 8.2(a) shall not exceed forty percent (40%) of the Purchase
Price in the aggregate; provided, however, that the limitations set forth in this
sentence shall not apply with respect to Sellers’ liability to Buyer (x) for Taxes of the Company
for Pre-Closing Periods as set forth in Section 6.2(a) (Taxes) or arising out of breaches
of the representations and warranties in the second sentence of Section 3.2
(Authorization), Section 3.3(a) (Capitalization), Section 3.3(b) (Title),
Section 3.18 (Brokers and Finders), Buyer’s failure to pay the Purchase Price, or a willful
failure to comply with a covenant made herein. All indemnity payments made under this Article
VIII shall be treated as adjustments to the Purchase Price. For the purposes of determining
the amount of Losses incurred by an Indemnified Party in accordance with this Article VIII,
such Losses shall be offset by the proceeds of any insurance received by the Indemnified Party with
respect thereto.

          (b) Limitations. Sellers shall not be liable for any Losses resulting from a
breach of any of the representations, warranties and covenants set forth in Article III of
this Agreement or any of the covenants set forth in Article VI of this Agreement to the
extent that:

               (i) the liability for such breach occurs or is increased as a result of the adoption or
imposition of any Law not in force at the date of this Agreement or as a result of any increase in
rates of taxation after the date of this Agreement; or

               (ii) the Losses would not have arisen but for a change in accounting policy or practice of the
Buyer or the Company after the Closing.

          (c) Losses. To the extent that any breach of or inaccuracy in any
representation or warranty made herein by Sellers results from the NEGLIGENCE of Sellers or the
Company or from the imposition of STRICT LIABILITY against one or more of them, the term “Losses”
shall not be interpreted to exclude any liability or loss incurred by Buyer for breach of or
inaccuracy in any representation or warranty arising out of or connected therewith;
provided, however, that the foregoing provision shall not imply that the remedies
of Buyer hereunder (as limited by Section 8.5) are extended to include claims against
Sellers for negligence or strict liability.

     8.3 Procedures.

          (a) An Indemnified Party seeking indemnification under Section 8.1 shall give
prompt written notice to the Indemnifying Party of the assertion of any claim that does not
involve a Proceeding brought by a third party. The notice shall describe in reasonable detail the
nature of the claim, an estimate of the amount of Losses attributable to the claim to the extent
feasible and the basis of the request for indemnification under this Agreement.

 

 

          (b) If an Indemnified Party receives notice of a Proceeding brought by a third party
for which the Indemnified Party intends to assert an indemnification claim under Section
8.1 against the Indemnifying Party, then the Indemnified Party shall give notice of the
Proceeding to the Indemnifying Party no later than thirty (30) Business Days before the answer or
other response to the Proceeding is required to be made. The Indemnifying Party shall assume the
defense of any Proceeding by notice to the Indemnified Party no later than fifteen (15) Business
Days prior to the date by which an answer or other response to the Proceeding is required to be
made. Any failure by either Party to give the requisite notice within the time specified in this
Section 8.3(b) shall not relieve the Indemnifying Party of the obligation to indemnify the
Indemnified Party or the obligation to allow the Indemnifying Party to defend pursuant to this
Section 8.3(b) except to the extent that the defense of any Proceeding is materially
prejudiced by the delay. The Indemnifying Party shall utilize counsel reasonably satisfactory to
the Indemnified Party.

          (c) Notwithstanding the foregoing, if an Indemnified Party shows that a Proceeding
will materially adversely affect it or its Affiliates in the operation of their respective
businesses other than as a result of monetary damages for which it would be entitled to
indemnification under this Article or if the Proceeding involves an assessment of Taxes solely
against the Indemnified Party, the Indemnified Party may, by notice to the Indemnifying Party,
assume the exclusive right to defend, but not compromise or settle, such Proceeding. If a
compromise or settlement will adversely affect the Indemnifying Party, and subject to the terms
hereof, any compromise or settlement of such a Proceeding may only be made with the consent of the
Indemnifying Party.

          (d) If the Indemnifying Party assumes the defense of a Proceeding pursuant to
Section 8.3(b), then the Indemnifying Party may defend and conduct any proceedings or
negotiations in connection with the Proceeding, take all other required steps or proceedings to
settle or defend any Proceeding, and to employ counsel to contest any Proceeding in the name of the
Indemnified Party or otherwise; provided, however, (i) no compromise or settlement of any
Proceeding may be effected by the Indemnifying Party without the Indemnified Party’s consent unless
(A) there is no violation of the rights of any Person and no effect on any other claims that may be
made against the Indemnified Party, and (B) the sole relief provided is monetary damages that are
in fact paid in full by the Indemnifying Party and (ii) the Indemnified Party will have no
liability with respect to any compromise or settlement of such Proceeding effected without its
consent.

          (e) If the Indemnifying Party does not assume the defense of (having been given a
proper opportunity to do so), or if after so assuming the Indemnifying Party fails properly to
defend, any Proceeding, then the Indemnified Party may defend against any claim or
Proceeding in a manner reasonably appropriate and the Indemnified Party may settle any claim
or Proceeding on such terms as are reasonable in the circumstances (but subject to the provisions
of this Article VIII, including Section 8.3(f)).

          (f) The Indemnified Party shall have the right to participate in the defense of any
Proceeding related to any indemnified Losses at its sole cost and expense and the cost and expense
of that participation shall not be Losses subject to indemnification.

 

 

          (g) In connection with any and all environmental matters for which Sellers must
indemnify Buyer under this Article VIII, including, without limitation, claims relating to
the presence or removal of Lime Kiln Dust on the Trapezoid Parcel for which Sellers must indemnify
Buyer under Section 6.15 and/or Section 8.2(a):

               (i) Subject to the last two sentences of this Section 8.3(g)(i), Buyer shall have the
right to conduct and retain control over any action to investigate, evaluate, assess, test,
monitor, remove, respond to, treat, abate, remedy, correct, clean-up or otherwise remediate the
release or presence of any Hazardous Substance or Lime Kiln Dust, correction of noncompliance or
other action (collectively, “Remedial Action”), including the right to (A) investigate any
suspected contamination or noncompliance, (B) conduct and obtain any tests, reports, surveys and
investigations, (C) contact, negotiate or otherwise deal with Governmental Authorities, (D) prepare
any plan for such Remedial Action and (E) conduct or direct any such Remedial Action;
provided that Buyer shall consult with Sellers in good faith, including providing Sellers
the opportunity to review and comment on any plan for Remedial Action prior to submittal to any
Governmental Authority and the opportunity to participate in meetings with any Governmental
Authority regarding Remedial Actions. Prior to incurring an obligation or material proposed
expenditure for any Remedial Action under this Article VIII, Buyer will provide Seller with
notice of its intention to do so (with adequate information relating to such proposed expenditure),
and Seller shall have the right to consent to such expenditure, which consent shall not
unreasonably be withheld. Buyer shall apprise Sellers of any information regarding the
undertaking, scheduling and execution of any Remedial Action and shall provide Seller with copies
that it receives of all written reports associated with any Remedial Action. Neither Buyer nor any
Affiliate of Buyer (including the Company) shall initiate any Remedial Action other than (a) as
required by applicable Environmental Laws, (b) in connection with reasonable responses to any spill
or emergency situation occurring within a reasonable period of time following such spill or
emergency situation, or (c) reasonable Remedial Actions taken in good faith following the receipt
of information that would lead a reasonable and responsible corporate citizen to believe that
Remedial Action is advisable in the circumstances; provided, however, that
following notice of the Remedial Action by Buyer to Sellers as required above, Buyer shall follow
any commercially reasonable recommendations of Sellers which are designed to mitigate the risks of
Environmental Liabilities resulting from such Remedial Actions. Notwithstanding any other
provision of this Agreement to the contrary, neither Buyer nor any Affiliate of Buyer (including
the Company) shall initiate any Remedial Action in connection with Lime Kiln Dust unless required
to do so under any Environmental Law.

               (ii) Sellers and Buyer agree that any Remedial Action shall be the most cost-effective,
commercially reasonable method under the circumstances and based upon the understanding that the
Owned Real Property and Leased Real Property is and will continue to
be used for industrial purposes. Any Remedial Action shall make maximum use of institutional
controls, including, without limitation, deed restrictions, signs, fencing, buffers and controls,
to the extent permitted by Governmental Authorities; provided that such institutional
controls shall not unreasonably restrict or limit the industrial activities being performed by
Buyer or the Company on the Owned Real Property or Leased Real Property.

               (iii) Sellers and Buyer mutually agree to cooperate in connection with any indemnification
claims.

 

 

               (iv) Buyer shall not contact or importune any Governmental Authority in connection with any
matter that will or could become the subject of a claim under Section 8.2(a), unless
required by Environmental Law.

The rights and remedies for claims under Section 8.1(a) as set forth in this Agreement
shall be the exclusive remedy of Buyer with respect to environmental claims.

     8.4 Consequential Damages. In no event shall any Party be liable for punitive,
consequential, special, incidental or similar damages, including lost profits, under or in
connection with this Agreement or the transactions contemplated hereby, regardless of whether a
claim is based on contract, tort, strict liability or any other legal or equitable principle, and
each Party releases the other from liability for any such damages. No Party shall be entitled to
rescission of this Agreement as a result of breach of any other Party’s representations,
warranties, covenants or agreements, or for any other matter.

     8.5 Sole Remedy. From and after the Closing, the provisions of this Article VIII
shall be the sole and exclusive remedy of each Party for (a) any breach of a Party’s
representations or warranties contained in this Agreement, (b) subject to the last sentence of this
Section 8.5, any breach of a Party’s covenants or other agreements contained in this
Agreement or (c) any other matters relating to this Agreement other than claims for fraud. Buyer
and Sellers and their respective Related Parties are the only Persons entitled to exercise any
remedy provided by this Article VIII. Nothing set forth in this Article VIII
shall be deemed to prohibit or limit the other Party’s right to seek injunctive or other equitable
relief for the failure of (i) Buyer to perform any covenant set forth in Section 6.1
(Reserved Names) or (ii) Sellers to perform any covenant set forth in Section 6.7 (Covenant
not to Compete; Covenant not to Solicit).

     8.6 Costs. The prevailing party shall be entitled to be paid by the non-prevailing party
all Expenses incurred in enforcing the terms of this Agreement.

ARTICLE IX

MISCELLANEOUS

     9.1 Books and Records. From and after the Closing Date, Buyer shall cause the Company to maintain copies of all books
and records in the possession of the Company at the time of the Closing and shall prevent the
Company from destroying any of such books and records for a period of five (5) years following the
Closing Date without first allowing Sellers, at Sellers’ expense, to make copies of the same.
During that period, Buyer shall cause the Company (a) to grant to Sellers and their representatives
reasonable cooperation, access and staff assistance at all reasonable times and upon reasonable
notice to all of such books and records relating to the period prior to the Closing (including work
papers and correspondence with taxing authorities) that are not otherwise protected by legal
privilege, (b) to afford Sellers and their representatives the right, at Sellers’ expense, to take
extracts therefrom and to make copies thereof and (c) to have access to the employees of the
Company, all to the extent reasonably necessary or appropriate for general business purposes,
including the preparation of Tax returns and the handling of Tax audits, disputes and litigation;
provided, however, that such requested cooperation, access and assistance shall not
unreasonably interfere with the normal operations of Buyer or the Company.

 

 

     9.2 Notices. All notices, requests, demands, claims and other communications hereunder
shall be in writing. Any notice, request, demand, claim or other communication hereunder shall be
deemed duly given: (a) if personally delivered, when so delivered; (b) if mailed, two (2) Business
Days after having been sent by first class, registered or certified U.S. mail, return receipt
requested, postage prepaid and addressed to the intended recipient as set forth below; (c) if given
by facsimile, once such notice or other communication is transmitted to the facsimile number
specified below, provided that: (i) the sending facsimile machine generates a
transmission report showing successful completion of such transaction and (ii) such notice or other
communication is promptly thereafter mailed in accordance with the provisions of clause (b) above;
and provided, further, that if such facsimile is sent after 5:00 p.m. local time at
the location of the receiving facsimile machine, or is sent on a day other than a Business Day,
such notice or communication shall be deemed given as of 9:00 a.m. local time at such location on
the next succeeding Business Day, or (d) if sent through a nationally-recognized overnight delivery
service which guarantees next-day delivery, the Business Day following its delivery to such service
in time for next day-delivery:

if to Buyer, to:

United States Lime & Minerals, Inc.

13800 Montfort Drive, Suite 330

Dallas, Texas 75240

Attention: Timothy W. Byrne,

                  President & CEO

Facsimile: (972) 385-1340

with a required copy to:

Thompson & Knight

1700 Pacific Avenue, Suite 3300

Dallas, Texas 75201

Attention: Steven K. Cochran, Esq.

Facsimile: (214) 969-1751

If to any Seller, to:

Oglebay Norton Company

North Point Tower

1001 Lakeside Avenue, 15th Floor

Cleveland, OH 44114-1151

Attention: Chief Executive Officer

Facsimile: (216) 861-2313

with a required copy to:

Oglebay Norton Company

North Point Tower

1001 Lakeside Avenue, 15th Floor

 

 

Cleveland, OH 44114-1151

Attention: Legal Department

Facsimile: (216) 861-2313

or such other address or facsimile number as shall be designated from time to time by written
notice in accordance with this Section 9.2 by the Person entitled to such notice. To the
extent any notice provision in any other agreement, instrument or document required to be executed
or executed by the Parties in connection with the transactions contemplated herein contains a
notice provision which is different from the notice provision contained in this Section
9.2, with respect to matters arising under such other agreement, instrument or document, the
notice provision in such other agreement, instrument or document shall control.

     9.3 Assignment; Governing Law.

          (a) Assignment. Neither this Agreement nor any right, remedy, obligation or
liability arising hereunder or by reason hereof nor any of the documents executed in connection
herewith may be assigned by any Party without the consent of the other Party, which consent shall
not be unreasonably withheld or delayed; provided, however, that any transferee
shall agree to assume all obligations under this Agreement of the transferor. Nothing contained
herein, express or implied, is intended to confer upon any Person other than the Parties and their
successors in interest and permitted assignees any rights or remedies under or by reason of this
Agreement unless so stated herein to the contrary.

          (b) Governing Law. THE VALIDITY, INTERPRETATION AND PERFORMANCE OF THIS AGREEMENT
AND ANY DISPUTE CONNECTED HEREWITH SHALL BE GOVERNED AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE (OTHER THAN THE PRINCIPLES OF
CONFLICTS OF LAWS THEREOF).

          (c) Consent to Jurisdiction; Service of Process. EACH PARTY HERETO HEREBY AGREES
THAT ANY SUIT, ACTION OR PROCEEDING IN RESPECT THEREOF SHALL BE BROUGHT IN ANY STATE OR FEDERAL
COURT HAVING JURISDICTION SITTING IN THE STATE OF DELAWARE; AND EACH PARTY HERETO HEREBY
IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND ANY APPELLATE COURT THEREOF FOR THE
PURPOSE OF ANY SUIT, ACTION, PROCEEDING (AND WAIVES FOR SUCH PURPOSE ANY DEFENSE BASED ON LACK OF
PERSONAL JURISDICTION). EACH PARTY HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR
HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT BROUGHT IN ANY SUCH COURT, AND HEREBY FURTHER IRREVOCABLY WAIVES ANY
CLAIM THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN
INCONVENIENT FORUM. Each Party irrevocably consents to the service of process in any such action
or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to
such Party, at its address for notices set forth in Section 9.2 of this Agreement, such
service to become effective ten (10) days after such mailing. Each Party hereby irrevocably waives
any objection to such service of process and further irrevocably waives and agrees not to

 

 

plead or claim in any action or proceeding commenced hereunder or under any other documents contemplated
hereby that service of process was in any way invalid or ineffective. Subject to Section
9.3(d) of this Agreement, the foregoing shall not limit the rights of any Party to serve
process in any other manner permitted by law. The foregoing consents to jurisdiction shall not
constitute general consents to service of process for any purpose except as provided above and
shall not be deemed to confer rights on any Person other than the Parties.

          (d) Waivers. Each of the Parties hereby waives any right it may have under the
laws of any jurisdiction to commence by publication any legal action or proceeding with respect to
this Agreement. To the fullest extent permitted by applicable Law, each of the Parties hereby
irrevocably waives the objection which it may now or hereafter have to the laying of the venue of
any suit, action or proceeding arising out of or relating to this Agreement in any of the courts
referred to in Section 9.3(c) of this Agreement and hereby further irrevocably waives and
agrees not to plead or claim that any such court is not a convenient forum for any such suit,
action or proceeding.

          (e) Enforcement. The Parties agree that any judgment obtained by either Party or
its permitted successors or assigns in any action, suit or proceeding referred to above may, in the
discretion of such Party (or its permitted successors or assigns), be enforced in any jurisdiction,
to the extent permitted by applicable Law.

          (f) Deemed Acceptance. Each Related Party of Buyer or Sellers, as the case may be,
seeking the benefit of Article VIII of this Agreement shall be deemed to have accepted and
agreed to the provisions of this Section 9.3 as a condition to obtaining any benefits under
Article VIII as if such Person was one of the Parties.

     9.4 Amendment and Waiver; Cumulative Effect. To be effective, any amendment or waiver
under this Agreement must be in writing and be signed by the Party against whom enforcement of the
same is sought. Neither the failure of either Party to exercise any right, power or remedy
provided under this Agreement or to insist upon compliance by the other Party with its obligations
hereunder, nor any custom or practice of the Parties at variance with the terms hereof shall
constitute a waiver by such Party of its right to exercise any such right, power or remedy or to
demand such compliance. The rights and remedies of the Parties are cumulative and not exclusive of
the rights and remedies that they otherwise might have now or hereafter, at law, in equity, by
statute or otherwise.

     9.5 No Third Party Beneficiaries. Except for Persons indemnified hereunder, no Person not
a party to this Agreement shall have rights under this Agreement as a third party beneficiary or
otherwise.

     9.6 Severability. If any term or other provision of this Agreement is held by a court of
competent jurisdiction to be invalid, illegal or incapable of being enforced under any rule of Law
in any particular respect or under any particular circumstances, such term or provision shall
nevertheless remain in full force and effect in all other respects and under all other
circumstances, and all other terms, conditions and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of the transactions
contemplated hereby is not affected in any manner materially adverse to either

 

 

Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced,
the Parties shall negotiate in good faith to modify this Agreement so as to effect the original
intent of the Parties as closely as possible in an acceptable manner to the end that the
transactions contemplated hereby are fulfilled to the fullest extent possible.

     9.7 Multiple Counterparts. This Agreement may be executed in a number of identical
counterparts. If so executed, each of such counterparts is to be deemed an original for all
purposes and all such counterparts shall, collectively, constitute one agreement, but, in making
proof of this Agreement, it shall not be necessary to produce or account for more than one such
counterpart.

     9.8 Joint Drafting. The Parties have been represented by counsel in the negotiations and preparation of this
Agreement; therefore, this Agreement shall be deemed to be drafted by each of the Parties, and no
rule of construction shall be invoked respecting the authorship of this Agreement.

     9.9 Entire Agreement. This Agreement supersedes all prior agreements,
representations, warranties, and covenants, whether written or oral, between the parties with
respect to its subject matter (including any letter of intent and any confidentiality agreement
between Buyer and Sellers) and constitutes (along with the Schedules, Exhibits and other documents
delivered pursuant to this Agreement) a complete and exclusive statement of the terms of the
agreement, representations, warranties and covenants between the parties with respect to its
subject matter.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     IN WITNESS WHEREOF, the Parties have executed this Agreement as of the day and year first
above written.

	 	 	 
	 

	 	BUYER:
	 
	 	 
	 

	 	UNITED STATES LIME & MINERALS, INC.
	 
	 	 
	 

	 	By:                                                                                
	 

	 	Name:                                                                           
	 

	 	Title:                                                                             
	 
	 	 
	 

	 	SELLERS:
	 
	 	 
	 

	 	OGLEBAY NORTON COMPANY
	 
	 	 
	 

	 	By:                                                                                
	 

	 	Name:                                                                           
	 

	 	Title:                                                                             
	 
	 	 
	 

	 	O-N MINERALS COMPANY
	 
	 	 
	 

	 	By:                                                                          
	 

	 	Name:                                                                     
	 

	 	Title:                                                                       
	 
	 	 
	 

	 	O-N MINERALS (LIME) COMPANY
	 
	 	 
	 

	 	By:                                                                         
	 

	 	Name:                                                                    
	 

	 	Title:                                                                      

Signature Page – Stock Purchase Agreementexv10w8

 

Exhibit 10.8

THIRD AMENDMENT TO LEASE

     This Amendment date July 15, 2005 for reference purposes only, is made by and between Tasman
V, LLC (hereinafter sometime called “Lessor”) and Adeza Biomedical Corporation (hereinafter
sometimes called “Tenant”) for Premises commonly known as 1240 Elko Drive, Sunnyvale, California.

RECITAL

	 	A.	 	Tenant entered into that certain Lease Agreement dated July 7, 1999 with the Landlord
for the premises.
	 
	 	B.	 	On August 8, 2002, Tenant extended the lease according to the First Amendment to Lease
	 
	 	C.	 	The current lease term and extension expired on April 14, 2004 and tenant has remained
month-to-month
	 
	 	D.	 	On October 12, 2004 Tenant extended the lease for an additional one-(1) year from
October 1, 2004 to September 30, 2005. The monthly rent due under said lease shall remain
unchanged at $16,720.
	 
	 	E.	 	Subject to the provisions of the Lease Agreement and this Second Amendment, the tenant
wishes to renew the lease.

AGREEMENT

     For and in consideration of the mutual covenants and undertakings set forth hereinafter the
parties agree as follows:

	 	1.	 	Extension of Lease Term: The Lease term shall be extended an additional one (1) year
from October 1, 2005 to September 30, 2006.
	 
	 	2.	 	Base Monthly Rent: The monthly rent due during this extension shall be $14,960.00
	 
	 	3.	 	Option to Renew: Lessee shall have the option to extend the term of the Lease on all of
the provisions contained in the Lease for two-(2) additional one-(1) year period(s)
following the expiration the term specified in Paragraph 1 of this agreement by giving
written notice of exercise of the option to Lessor not less than 120 days before the
expiration of the lease term as specified in paragraph 1 of this agreement. The base
monthly rent to be paid by Lessee during the option term shall at market rent rate.
	 
	 	4.	 	Effect of Amendment: Each term used herein with initial capital letters shall have the
meaning ascribed to such term in the Lease unless specifically otherwise defined herein. In
the event of any inconsistency between this Amendment and the Lease, the terms of this
Amendment shall prevail. Time is of the essence as to each and every provision of this
amendment.
	 
	 	5.	 	Entire Understanding: This Amendment and Lease shall constitute the entire agreement
between the parties and no other written or oral agreement or understanding exists between
the parties. All other terms and conditions of the Lease shall remain the same. In the
event of any inconsistency between this Amendment and the Lease, the terms of the Amendment
shall prevail.

IN WITNESS WHEREOF, the parties have executed this Agreement on the date written below.

	 	 	 	 	 	 	 	 	 	 	 
	Landlord:

	 	Tasman V, LLC
	 	 	 	Tenant:
	 	Adeza Biomedical Corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jack E. Horton
 

	 	 	 	By:
	 	/s/ Mark Fischer-Colbrie
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name Printed:

	 	Jack E. Horton
	 	 	 	Name Printed:
	 	Mark Fischer-Colbrie	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Mgr. Member
	 	 	 	Title:
	 	VP Finance & Administration	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	9-16-05
	 	 	 	Date:
	 	9-12-05

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00099-of-00352.parquet"}]]