Document:

Agreement for the Sale and Purchase of Part of the Business Opsys Limited

 Exhibit 10.4 
  
 AGREEMENT 
  
 OPSYS UK LIMITED 
  
 and 
  
 OPSYS LIMITED 
  
 FOR THE SALE AND PURCHASE OF PART OF 
 THE BUSINESS OF OPSYS LIMITED 
  
 24 October 2002 

 Contents 
  

					
	 1.
	  	 Definitions and interpretation
	  	1
	 2.
	  	 Sale of the Opsys UK Business and the Assets
	  	5
	 3.
	  	 Consideration
	  	5
	 4.
	  	 Property
	  	6
	 5.
	  	 Value Added Tax
	  	6
	 6.
	  	 Completion
	  	6
	 7.
	  	 Apportionments, Advance Payments and Advance Receipts
	  	7
	 8.
	  	 Post Completion
	  	7
	 9.
	  	 Contracts
	  	7
	 10.
	  	 Employees
	  	8
	 11.
	  	 Warranty
	  	8
	 12.
	  	 General
	  	8
	 13.
	  	 Costs and expenses
	  	9
	 14.
	  	 Notices
	  	9
	 15.
	  	 Governing law and jurisdiction
	  	10

  
 Annexure A - Employees 
 Annexure B - Excluded Contracts 
 Annexure C - Intellectual Property 
 Annexure D - Notice of Objection to Transfer 
 Annexure E - Excluded Items 
 Annexure F - Novation Agreements and Novated Agreements 
  
 Schedule (Property Schedule) 

 This Agreement is made the            
24th             day of             October             2002

  
 Between: 
  

	(1)	Opsys UK Limited (company number: 4421247) whose registered office is 2 Temple Back East, Temple Quay, Bristol, BS1 6EG, UK (the “Buyer”); and

  

	(2)	Opsys Limited (company number: 3426174) whose registered office is at Unit 8, Begbroke Business and Science Park, Sandy Lane, Yarnton, Kidlington, Oxon OX5 1PF (the
“Seller”). 

  
 Background: 
  
 The Buyer is the wholly owned subsidiary of the Seller. The Seller has agreed to sell to the
Buyer and the Buyer has agreed to purchase as a going concern the goodwill and undertaking of the Opsys UK Business (as defined below) carried on at present by the Seller on the terms of this Agreement. 
  
 It is agreed as follows: 
  

	1.	Definitions and interpretation 

  

	1.1	In this Agreement, unless the context otherwise requires, the following words have the following meanings: 

  

			
	“this Agreement”	 	this Agreement (including any schedule or annexure to it and any document in agreed
form);
		
	“Acquired Employees”	 	all the employees of the Seller engaged in the Opsys UK Business whose names are set out in Part One of annexure A and “Acquired Employee” means any of them;
		
	“Assets”	 	the goodwill and undertaking of the Opsys UK Business and all property, rights and assets employed, exercised or enjoyed in or in connection with the Opsys UK Business owned by the Seller,
other than the Excluded Assets, including but without limitation those listed and referred to in clause 2.1;
		
	“Assignment of Patent Rights”	 	the patent assignment in the agreed form initialled by the parties for identification purposes only;
		
	“Assignment of Trade Mark Rights”	 	the assignment of the Trade Marks in the agreed form initialled by the parties for identification purposes only;
		
	“Business Day”	 	a day (other than a Saturday or a Sunday) on which clearing banks are open for business in the City of London;
		
	“Claims”	 	other than claims for a tax asset, all rights and claims of the Seller against third parties relating to any of the Assets or otherwise arising (whether before or after Completion) out of or
in connection with the Opsys UK Business;

  

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	“Completion”	 	the performance by the parties of the obligations set out in clause 6 (Completion);
		
	“Consideration”	 	the purchase price for the Opsys UK Business and Assets referred to in clause 3.1;
		
	“Contracts”	 	save for the contracts of employment, the Excluded Contracts, the Novated Agreements and the Novation Agreements, all undischarged contracts, pending contracts, commitments and orders entered
into by or on behalf of the Seller relating to the Opsys UK Business;
		
	“Debts”	 	other than the Claims, all amounts owing to the Seller on the Transfer Date (whether or not then due and payable) in relation to the Opsys UK Business;
		
	“Domain Names”	 	the domain names listed in annexure C;
		
	“Employees”	 	the Retained Employees and the Acquired Employees and “Employee” means any of them;
		
	“Excluded Assets”	 	 (a)    cash in hand or at bank and all cheques and other securities representing them;

		
	 	 	 (b)    the Excluded Contracts;

		
	 	 	 (c)    the Excluded Items;

		
	 	 	 (d)    the Properties;

		
	 	 	 (e)    the Excluded Individuals;

		
	 	 	 (f)     the Debts; and

		
	 	 	 (f)     the Domain Names;

		
	“Excluded Contracts”	 	the contracts relating to the Opsys UK Business listed in annexure B;
		
	“Excluded Individuals”	 	Donald Barclay, Thomas Anthopoulos, Ebinezar Namdas, Jonathan Markham, Shih Chun Lo, Gary Richards, Sanjay Sharma, Esteban Ramon Vella, Sylvia Bettlington, Mounir Halim, Susie Jenkins, George
Robb, Philip Wood, Graham Turnbull, Steven Magennis, Richard Beavington, Christine Tedeschi and Dean Mathieson;

  

 2 

			
	“Excluded Items”	 	the items listed in annexure E;
		
	“Intellectual Property”	 	means patents, trade marks, service marks rights in designs, trade or business names, trade secrets, know-how, copyrights, topography rights and rights in databases (whether or not any of
these is registered and including applications for registration of any such thing) and all rights or forms of protection of a similar nature or having equivalent or similar effect to any of these which may subsist anywhere in the
world;
		
	“IT Architecture”	 	the Opsys VPN and the services provided to the Seller by CAE Office Systems;
		
	“Kodak Licence”	 	the licence between the Seller and Eastman Kodak Company for the cross licence of certain intellectual property rights, dated 31 March 2001;
		
	“Liabilities”	 	all claims, liabilities and obligations of the Seller on the Transfer Date relating exclusively to the Opsys UK Business and for the avoidance of doubt, excluding any liability relating to
the Excluded Assets or any of them and excluding liabilities relating to the Acquired Employees, the Retained Employees or under the TUPE Regulations (which shall, for the avoidance of doubt, be dealt with in the transaction agreement made between,
inter alios, the Buyer and the Seller and dated 23 October 2002);
		
	“notice”	 	includes any notice, demand, consent or other communication;
		
	“Novation Agreements”	 	the agreements listed in annexure F;
		
	“Novated Agreements”	 	the agreements being novated by the Novation Agreements;
		
	“Opsys UK Business”	 	the business of research and development of novel light emitting materials and other opto-electronic technologies for eventual application in organic electroluminescent displays and lighting
including, but not limited to, active and passive matrix displays;
		
	“Properties”	 	the Office Property and the Reception Area Property details of which are summarised in Part 1 of the Schedule and “Property” shall mean either one of them;

  

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	“Records”	 	the financial records and other records relating to the Opsys UK Business and the
Employees, held on whatever medium, excluding any which the Seller is required by
law to
retain;
		
	“Retained Employees”	 	means any employee, consultant or other individual who works for the Seller on the date hereof on any basis, other that the Acquired Employees and including the individuals whose names are
set out in Part Two of Annexure A and “Retained Employee” means any of them;
		
	“Trade Marks”	 	the trade marks listed in annexure C;
		
	“Transfer Date”	 	the date of this Agreement;
		
	“TUPE Regulations”	 	the Transfer of Undertakings (Protection of Employment) Regulations 1981.

  

	1.2	In this Agreement, unless the context otherwise requires: 

  

	 	(a)	words in the singular include the plural and vice versa and words in one gender include any other gender; 

  

	 	(b)	a reference to a statute or statutory provision includes: 

  

	 	(i)	any subordinate legislation (as defined in Section 21(1), Interpretation Act 1978) made under it; and 

  

	 	(ii)	any statute or statutory provision which modifies, consolidates, re-enacts or supersedes it ; 

  

	 	(c)	a reference to: 

  

	 	(i)	any party includes its successors in title and permitted assigns; 

  

	 	(ii)	a “person” includes any individual, firm, body corporate, association or partnership, government or state (whether or not having a separate legal personality);

  

	 	(iii)	clauses and schedules are to clauses and schedules of this Agreement and references to sub-clauses and paragraphs are references to sub-clauses and paragraphs of the clause or
schedule in which they appear; 

  

	 	(iv)	any provision of this Agreement is to that provision as amended in accordance with the terms of this Agreement; 

  

	 	(v)	any document being “in the agreed form” means in a form which has been agreed by the parties on or before the date of this Agreement and for identification purposes
signed by them or on their behalf by their solicitors; and 

  

	 	(vi)	 “indemnify” and “indemnifying” any person against any circumstance include indemnifying and keeping him 

  

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harmless from all actions, claims and proceedings from time to time made against him and all loss or damage and all payments, costs or expenses made or
incurred by that person as a consequence of or which would not have arisen but for that circumstance; 
  

	 	(d)	except as set out in sub-clause 1.1, terms defined in the Companies Act 1985 have the meanings attributed to them by that Act; 

  

	 	(e)	the table of contents and headings are for convenience only and shall not affect the interpretation of this Agreement; 

  

	 	(f)	the words “include”, “includes” and “including” shall be deemed to be followed by the phrase “without limitation”; and

  

	 	(g)	general words shall not be given a restrictive meaning: 

  

	 	(i)	if they are introduced by the word “other” by reason of the fact that they are proceeded by words indicating a particular class of act, matter or things; or

  

	 	(ii)	by reason of the fact that they are followed by particular examples intended to be embraced by those general words. 

  

	2.	Sale of the Opsys UK Business and the Assets 

  

	2.1	The Seller shall sell to the Buyer with full title guarantee free from all charges and encumbrances (whether monetary or not) and the Buyer shall purchase as at the Transfer Date
the Assets, including but not limited to: 

  

	 	(a)	the Intellectual Property owned by the Seller at the Transfer Date; 

  

	 	(b)	the benefit (so far as they can lawfully be assigned, transferred to or held in trust for the Buyer) of the Claims; 

  

	 	(c)	the benefit (subject to the burden) of the Contracts; and 

  

	 	(d)	the Records. 

  

	2.2	The Seller shall use all reasonable endeavours to procure the re-registration of the Domain Names in the name of the Buyer to take effect on or about twelve months after the
Transfer Date and shall use all reasonable endeavours to execute all documentation at the expense of the Buyer reasonably necessary to effect such re-registration. Where the failure to effect such re-registration on the intended date is outside the
control of the Seller and the Buyer, such failure will not be deemed to be a breach of this clause. 

  

	2.3	Title in, and risk of loss or damage to, the Assets shall pass to the Buyer on the Transfer Date. From the Transfer Date the Seller shall hold the Assets on trust for the Buyer
absolutely until they shall have been delivered, formally transferred or assigned to the Buyer, and shall act in accordance with the Buyer’s instructions in respect of any Asset which it so holds as trustee. 

  

	2.4	The Buyer hereby grants the Seller a non-exclusive, royalty free licence to use the Trade Marks for a period of 12 months from the date hereof. 

  

	3.	Consideration 

  

	3.1	The consideration is the payment by the Buyer to the Seller of the sum of $2,500,000 which shall be left out-standing on inter-company loan and the issue of 839 ordinary shares of
£1 each in the Buyer to the Seller. Any amounts expressed in this Agreement are exclusive of any value added tax which may be chargeable thereon and the amount of any such value added tax shall be payable in addition thereto.

  

 5 

	3.2	In addition, the Buyer shall assume the Liabilities and keep the Seller indemnified against all actions, proceedings, costs, damages, claims and demands in respect of them.

  

	3.3	The Buyer shall not be responsible for any liability in respect of the Opsys UK Business or Assets which is not expressly assumed by it under this Agreement and the Seller shall
indemnify the Buyer accordingly. 

  

	4.	Property 

  
 The provisions of the Schedule shall apply in relation to the Properties and where such provisions shall conflict with other provisions of this agreement
the provisions of the Schedule shall apply. 
  

	5.	Value Added Tax 

  

	5.1	Immediately after the Transfer Date, the Buyer shall use its best endeavours to: 

  

	 	(i)	obtain a VAT registration number; 

  

	 	(ii)	establish a closing date for the Buyer’s VAT period as soon as possible after the Transfer Date; 

  

	 	(iii)	file a claim for VAT in the event that there is a charge to VAT in the Seller connected with the Hive Down. 

  
 The Buyer reimburses the Seller on a pound for pound basis any amount it
receives from customs and excise in respect of any VAT charge incurred by the Seller relating to supplies made by the Buyer hereunder for purposes of VAT. 
  

	5.2	The Seller and the Buyer agree that the sale of the Assets is the transfer of part of the business of the Seller as a going concern for the purposes of both Section 49, VATA and
Article 5, Value Added Tax (Special Provisions) Order 1995 (“Article 5”). The Seller and the Buyer shall use their reasonable endeavours to secure that pursuant to such provisions the sale of the Assets is treated as neither a
supply of goods nor a supply of services for the purposes of VAT. 

  

	6.	Completion 

  

	6.1	Completion shall take place on the signing of this Agreement. 

  

	6.2	On Completion: 

  

	 	(a)	the Seller shall permit the Buyer to enter into and take possession of the Opsys UK Business and shall deliver or cause to be delivered to the Buyer: 

  

	 	(i)	any instruments of transfer which the Buyer may reasonably require to vest title in the Assets (including, without limitation, transfers, conveyances and assignments) together with
all deeds and documents of title relating to the Assets; 

  

	 	(ii)	those Records which are not stored at the Properties; 

  

	 	(iii)	duly executed releases from the holders of all outstanding charges over the Opsys UK Business and/or any of the Assets; 

  

 6 

	 	(iv)	the duly executed Assignment of Patent Rights; 

  

	 	(v)	the duly executed Assignment of Trade Mark Rights; and 

  

	 	(vi)	the duly executed Novation Agreements together with a copy of the Novated Agreements. 

  

	7.	Apportionments, Advance Payments and Advance Receipts 

  

	7.1	The following, shall be apportioned on a time basis so that the part attributable to the period ended on and including the Transfer Date shall be borne by the Seller and the part
attributable to the period commencing on the day following the Transfer Date shall be borne by the Buyer: 

  

	 	(a)	all periodical charges and outgoings attributable to the Opsys UK Business or the Assets (including, but not limited to, rent, rates, gas, electricity, water and telephone charges);

  

	 	(b)	all liabilities in relation to salaries, wages, accrued holiday pay, national insurance, pension contributions, PAYE remittances and all other payments to or in respect of the
Acquired Employees; and 

  

	 	(c)	all rents, licences, fees, royalties and any other amounts receivable in respect of the Opsys UK Business or the Assets; 

  
 and the resulting balance shall be paid over promptly after such
apportionment has been made. 
  

	8.	Post Completion 

  

	8.1	Forthwith after the Transfer Date: 

  

	 	(a)	the Seller shall wholly discontinue carrying on the Opsys UK Business; and 

  

	 	(b)	the parties shall, at the expense of the Buyer, send to the suppliers and customers of the Opsys UK Business letters in a form agreed between them. 

  

	8.2	For a period of twelve months after the Transfer Date, the Seller shall, forthwith upon receipt, forward to the Buyer any notices, correspondence, information or enquiries which
relate to the Opsys UK Business. 

  

	8.3	The Buyer shall preserve, or procure the preservation of the financial records of the Opsys UK Business for a period of seven years and shall permit and allow, upon giving
reasonable notice and during business hours, the Seller and/or its agents, accountants or other representatives access to, and at its own expense to take copies of, them. 

  

	9.	Contracts 

  

	9.1	With effect from Completion, the Buyer shall assume the obligations, and become entitled to the benefits, of the Seller under the Contracts. 

  

	9.2	The Seller and the Buyer shall together use their best efforts to procure the execution of the Novation Agreements by all parties to them. 

  

	9.3	If any Contract cannot be assigned by the Seller to the Buyer except by an agreement of novation or with a consent to assignment or without the assignment constituting an event of
default or termination, no assignment takes place by virtue of this Agreement until legally able to do so, but: 

  

 7 

	 	(a)	the Seller and the Buyer shall (at the request of the Buyer) together take all reasonable steps to obtain the consent or waiver to the event of default or to the termination;

  

	 	(b)	unless or until the Contract has been novated or assigned or the provision waived, the Seller shall hold it in trust for the Buyer; 

  

	 	(c)	the Buyer shall, at its own cost and for its own benefit, perform the Seller’s obligations under the Contract arising after the Transfer Date; and 

  

	 	(d)	the Buyer shall indemnify the Seller against the defective or negligent performance or non-performance of the Contract. 

  

	10.	Employees 

  

	10.1	The parties acknowledge and agree that, pursuant to the TUPE Regulations, the contracts of employment between the Seller and each of the Acquired Employees will have effect from the
Transfer Date as if made originally between the Buyer and each Acquired Employee. 

  

	10.2	The Seller shall procure that on the Transfer Date the Retained Employees shall give to the Seller and the Buyer a notice of objection in the form set out in annexure D.
Contemporaneously the Seller shall ensure that an offer is made by it to each Retained Employee to employ him under a new contract of employment which do not differ in any material way from the terms and conditions of employment of that Retained
Employee immediately before the Transfer Date. 

  

	11.	Warranty 

  
 The Seller warrants to the Buyer that it is the only legal and beneficial owner of the Assets; that the Assets are sold free from all charges and
encumbrances; and that it has obtained all corporate authorisations and all other applicable governmental, statutory, regulatory or other consents, licences, waivers or exemptions required to empower it to enter into and to perform its obligations
under this agreement and each document to be executed by it at or before Completion pursuant to this agreement. 
  

	12.	Stamp Duty 

  
 The Seller and the Buyer hereby certify that the transaction effected under this Agreement does not form part of a larger transaction or of a series of
transactions in respect of which the amount or value or the aggregate amount or value of the consideration (ignoring consideration which may be disregarded for stamp duty purposes) exceeds £60,000. 
  

	13.	General 

  

	13.1	Contracts (Rights of Third Parties) Act 1999 

  
 Unless expressly provided in this Agreement, no term of this Agreement is enforceable pursuant to the Contracts (Rights of Third Parties) Act 1999 by any
person who is not a party to it. 
  

	13.2	Entire Agreement 

  
 This Agreement sets out the entire agreement and understanding between the parties in respect of the subject matter of this Agreement. 
  

 8 

	13.3	Variation 

  
 No purported variation of this Agreement shall be effective unless it is in writing and signed by or on behalf of each of the parties. 
  

	13.4	Effect of Completion 

  
 Except to the extent already performed, all the provisions of this Agreement shall, so far as they are capable of being performed or observed, continue in
full force and effect notwithstanding Completion. 
  

	13.5	Invalidity 

  
 If any provision of this Agreement is found by any court or competent authority to be invalid, unlawful or unenforceable in any jurisdiction, that
provision shall be deemed not to be a part of this Agreement, but it shall not affect the enforceability of the remainder of this Agreement nor shall it affect the validity, lawfulness or enforceability of that provision in any other jurisdiction.

  

	13.6	Further assurance 

  
 After Completion, the Seller shall execute such documents and take such steps as the Buyer may reasonably require to vest the full title (to the extent
possible) to the Opsys UK Business and Assets in the Buyer and give the Buyer the full benefit of this Agreement. 
  

	13.7	Maintenance of Registered Intellectual Property 

  
 Seller shall, at the Buyer’s expense, take all reasonable steps to maintain the registrations of the Trade Marks and of the patents set out in
annexure C as are registered and to prosecute the applications of such of the foregoing as are pending registration, from the Transfer Date until the Buyer or its nominee or successor in title is recorded as proprietor thereof on the relevant
register, provided that the Seller shall be entitled, acting reasonably, to abandon, vary or amend any of the foregoing with the consent of the Buyer, which consent will not be unreasonably withheld or delayed. 
  

	13.8	Counterparts 

  

	 	(a)	This Agreement may be executed in any number of counterparts and by the parties on separate counterparts, but shall not be effective until each party has executed at least one
counterpart. 

  

	 	(b)	Each counterpart, when executed, shall be an original of this Agreement and all counterparts shall together constitute one instrument. 

  

	14.	Costs and expenses 

  

	14.1	Except as referred to in sub-clause 14.2 each party shall bear its own costs and expenses incurred in the preparation, execution and implementation of this Agreement.

  

	14.2	The Buyer shall pay all stamp and other transfer duties and registration fees applicable to any document to which it is a party and which arise as a result of or in consequence of
this Agreement. 

  

	15.	Notices 

  

	15.1	Any notice to a party under this Agreement shall be in writing signed by or on behalf of the party giving it and shall, unless delivered to a party personally, be left at, or sent
by prepaid first class post, prepaid recorded delivery or facsimile to the address of the party as set out on page 1 of this Agreement or as otherwise notified in writing from time to time. 

  

 9 

	15.2	A notice shall be deemed to have been served: 

  

	 	(a)	at the time of delivery if delivered personally; 

  

	 	(b)	48 hours after posting in the case of an address in the United Kingdom and 96 hours after posting for any other address; or 

  

	 	(c)	two hours after transmission if served by facsimile on a Business Day prior to 3pm or in any other case at 10 am on the Business Day after the date of despatch.

  
 If the deemed time of service is not during
normal business hours in the country of receipt, the notice shall be deemed served at or, in the case of faxes, two hours after the opening of business on the next Business Day of that country. 
  

	15.3	In proving service it will be sufficient to prove: 

  

	 	(a)	in the case of personal service, that it was handed to the party or delivered to or left in an appropriate place for receipt of letters at its address; 

  

	 	(b)	in the case of a letter sent by post, that the letter was properly addressed, stamped and posted; or 

  

	 	(c)	in the case of facsimile, that it was properly addressed and despatched to the number of the party. 

  

	15.4	A party shall not attempt to prevent or delay the service on it of a notice connected with this Agreement. 

  

	16.	Governing law and jurisdiction 

  

	16.1	This Agreement shall be governed by and construed in accordance with English Law. 

  

	16.2	Each of the parties irrevocably submits for all purposes in connection with this Agreement to the non-exclusive jurisdiction of the courts of England. 

  
 This Agreement is made on the date appearing at the head of page one. 
  

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	 Signed by
	 	    )	 	 	 	 
	 for and on behalf of
	 	)	 	 	 	/s/    Michael Holmes
	 Opsys Limited
	 	)	 	 	 	 
	 in the presence of:
	 	)	 	 	 	 
				
	 Signature of witness:     /s/    Jeremy Osler
	 	 	 	 	 	 
				
	 Name: Jeremy Osler
	 	 	 	 	 	 
				
	 Occupation: Solicitor
	 	 	 	 	 	 
				
	 Signed by
	 	    )	 	 	 	 
	 for and on behalf of
	 	)	 	 	 	/s/    Ian Butcher
	 Opsys UK Limited
	 	)	 	 	 	 
	 in the presence of:
	 	)	 	 	 	 
				
	 Signature of witness:     /s/    Magnus Vekauder
	 	 	 	 	 	 
				
	 Name: Magnus Vekauder
	 	 	 	 	 	 
				
	 Occupation:     SolicitorSubscription and Exchange Agreement, dated October 25, 2002

 Exhibit 10.5 
  
 SUBSCRIPTION AND EXCHANGE AGREEMENT 
  

Subscription and Exchange Agreement, dated as of October 25, 2002 (the “Agreement”), between CDT Acquisition Corp., a Delaware
corporation (the “Company”), and Toppan Printing Co., Ltd., a kabushiki kaisha organized under the laws of Japan (“Toppan”). Certain capitalized terms used herein are defined in Section 12. 
  
 WHEREAS, the Company is entering into a Transaction Agreement (the
“Transaction Agreement”) between the Company, Cambridge Display Technologies Limited, a private limited company organized under the laws of England (“CDT Ltd.”), Opsys Limited, a private limited company organized under the
laws of England (“Opsys”), Opsys UK Limited, a private limited company organized under the laws of England (“Opsys UK”), Alexis Zervoglos, Michael Holmes, Opsys US Corporation and Opsys US 2 Corporation; 

 
 WHEREAS, in connection with the transactions contemplated by the
Transaction Agreement (the “Opsys Transactions”), the Company and Toppan are entering into a Memorandum of Understanding (the “Memorandum of Understanding”) and a side letter (the “Side Letter”),
both of which set forth the parties’ mutual understanding with respect to certain business matters; 
  
 WHEREAS, also in connection with the Opsys Transactions, Toppan, Opsys, Opsys UK, CDT Ltd. and the Company are entering into a Novation and Amendment
Agreement (the “Novation Agreement”) with respect to a joint development agreement, dated July 4, 2002, between Toppan and Opsys; 
  
 WHEREAS, also in connection with the Opsys Transactions, Toppan desires to subscribe for, and the Company desires to make available for purchase, 309,598
shares (the “Subscription Shares” of the Company’s Class A Common Stock, par value $.01 per share (the “Class A Common Stock”); and 
  
 WHEREAS, also in connection with the Opsys Transactions, the Company has made an offer to acquire 2,821,622 shares of the
ordinary D-UK shares of Opsys (the “Opsys Shares”) owned by Toppan, and the Company proposes to deliver as consideration for the Opsys Shares 185,758 shares of the Class A Common Stock (the “Exchange Shares”;
together with the Subscription Shares, the “CDT Shares”). 

 NOW, THEREFORE, in consideration of the mutual covenants and obligations set forth in this Agreement, the
parties hereto agree as follows: 
  
 1. Purchase and Sale of
the Subscription Shares; Exchange of the Opsys Shares for the Exchange Shares. 
  
 (a) Subscription Shares. Subject to all of the terms and conditions of this Agreement, Toppan hereby subscribes for and agrees to purchase the Subscription Shares from the Company, and the Company hereby agrees
to sell the Subscription Shares to Toppan for Toppan’s own account for an aggregate purchase price of $5,000,000 (the “Consideration”). 
  
 (b) Exchange Shares. Subject to all of the terms and conditions of this Agreement, Toppan hereby agrees to sell the Opsys Shares to the Company,
and the Company hereby agrees to purchase the Opsys Shares from Toppan in exchange for the Exchange Shares (the “Exchange”). 
  
 (c) Closing. The sale and purchase of the Subscription Shares and the Exchange will occur at a closing (the “Closing”), which will
be held at the same place and at the same time as the closing under the Transaction Agreement. 
  
 2. Deliveries at the Closing. 
  
 (a) Company Deliveries. Against delivery of the Consideration and the Opsys Shares, the Company will deliver to Toppan at the Closing (i) a stock certificate registered in Toppan’s name and representing the number of
Subscription Shares purchased by Toppan, which certificate shall bear the applicable legends set forth in Section 6.07 of the Amended and Restated By-Laws of the Company, as adopted on July 26, 1999 (as they may be amended from time to time, the
“By-Laws”), (ii) a stock certificate registered in Toppan’s name and representing the number of Exchange Shares purchased by Toppan, which certificate shall bear the applicable legends set forth in Section 6.07 of the
By-Laws and (iii) a signature page executed by the Company to a joinder agreement substantially in the form attached hereto as Exhibit A (the “Joinder Agreement”) to the Registration Rights Agreement, dated as of July 27,
1999 (as it may be amended from time to time, the “Registration Rights Agreement”), among the Company and certain stockholders of the Company. 
  

(b) Toppan Deliveries. Against delivery of the CDT Shares, Toppan will deliver to the Company at the Closing (i) the Consideration by
wire transfer of immediately available funds to an account designated by the Company, (ii) one or more stock certificates representing the Opsys Shares, duly endorsed in blank (but undated) or accompanied by stock powers or other instruments
of transfer duly executed in blank (but undated) and (iii) a signature page to the Joinder Agreement, executed by Toppan. 
  
 (c) Contingent Obligations. The obligations of the Company and Toppan under this Section 2 are contingent on the simultaneous closing of the
Transaction Agreement and the execution of the Memorandum of Understanding, the Side Letter and the Novation Agreement. 
  

 2 

 3. Toppan’s Representations, Warranties and Covenants. 
  
 (a) Title to Shares; Voting. Toppan owns, beneficially and of record,
the Opsys Shares, free and clear of any Liens. Upon delivery and payment of the Opsys Shares to the Company as provided for in this Agreement, the Company will acquire beneficial title to the Opsys Shares being purchased by it, free and clear of any
Liens, other than Liens created by or on behalf of the Company and other than the requirement pursuant to the July 9, 2002 shareholders agreement between Opsys, Toppan and others (the “Opsys Shareholder Agreement”) that all of the
Opsys shareholders must consent to Toppan’s transfer of the Opsys Shares to the Company (the “Opsys Consent”). Once the Opsys Consent is obtained, the Company will acquire good and marketable title of record to the Opsys Shares
being purchased by it, free and clear of any Liens, other than Liens created by or on behalf of the Company. Until the Opsys Shares are registered in the name of the Company, Toppan covenants that it will vote the Opsys Shares in accordance with the
Company’s instructions. Other than the Opsys Shareholder Agreement, Toppan is not a party to any agreement, whether written or oral, relating to the Opsys Shares, or any interest therein or rights relating thereto, including the ownership,
voting or disposition thereof. 
  
 (b) Investment Intention and
Restrictions on Disposition. Toppan represents and warrants that Toppan is acquiring the CDT Shares solely for Toppan’s own account for investment and not with a view to, or for sale in connection with, any distribution thereof. Toppan
agrees that it will not, directly or indirectly, offer, transfer, sell, pledge, hypothecate or otherwise dispose of any of the CDT Shares (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of any of the CDT Shares) or any
interest therein or any rights relating thereto, except in compliance with the Securities Act, all applicable state securities or “blue sky” laws as they may be amended from time to time, this Agreement as it may be amended from time to
time, the By-Laws and the Registration Rights Agreement. Any attempt by Toppan, directly or indirectly, to offer, transfer, sell, pledge, hypothecate or otherwise dispose of any CDT Shares or any interest therein or any rights relating thereto
without complying with the provisions of the Securities Act, all applicable state securities or “blue sky” laws as they may be amended from time to time, this Agreement as it may be amended from time to time, the By-Laws and the
Registration Rights Agreement shall be void and of no effect. Toppan hereby: (i) certifies that Toppan has read and understands the restrictions on the transfer of the CDT Shares as set forth in Article VII of the By-Laws (the “By-Law
Restrictions”), (ii) understands and consents that as a “Minority Investor” under the By-Laws, the By-Law Restrictions apply to the CDT Shares, (iii) certifies that Toppan has read and understands the restrictions on
the transfer of the CDT Shares set forth in the Registration Rights 
  

 3 

 Agreement, including, but not limited to, the holdback provisions set forth in Section 5 of such agreement (the
“Registration Rights Restrictions”), (iv) understands and consents that as “Registrable Securities” under the Registration Rights Agreement, the Registration Rights Restrictions apply to the CDT Shares, and
(v) covenants that Toppan will not challenge the enforceability of the By-Law Restrictions or the Registration Rights Restrictions in any court of law. 
  

(c) Securities Laws Matters. Toppan acknowledges receipt of advice from the Company that (i) the CDT Shares have not been registered
under the Securities Act or qualified under any state securities or “blue sky” laws, (ii) it is not anticipated that there will be any public market for the CDT Shares, (iii) the CDT Shares must be held indefinitely and
Toppan must continue to bear the economic risk of the investment in the CDT Shares unless the CDT Shares are subsequently registered under the Securities Act and such state laws or an exemption from registration is available, (iv) Rule 144
promulgated under the Securities Act (“Rule 144”) is not presently available with respect to sales of any securities of the Company and the Company has made no covenant to make Rule 144 available and Rule 144 is not anticipated to
be available in the foreseeable future, (v) when and if the CDT Shares may be disposed of without registration in reliance upon Rule 144, such disposition can be made only in limited amounts and in accordance with the terms and conditions of
such Rule, (vi) if the exemption afforded by Rule 144 is not available, sale of the CDT Shares without registration will require the availability of an exemption under the Securities Act, (vii) applicable restrictive legends in the
forms set forth in Section 6.07 of the By-Laws shall be placed on the certificate representing the CDT Shares and (viii) a notation shall be made in the appropriate records of the Company indicating that the CDT Shares are subject to
restrictions on transfer and, if the Company should in the future engage the services of a stock transfer agent, appropriate stop-transfer instructions will be issued to such transfer agent with respect to the CDT Shares. 
  
 (d) Ability to Bear Risk. Toppan represents and warrants that
(i) Toppan’s financial situation is such that it can afford to bear the economic risk of holding the CDT Shares for an indefinite period and (ii) Toppan can afford to suffer the complete loss of Toppan’s investment in the CDT
Shares. 
  
 (e) Access to Information; Sophistication; Lack of
Reliance. Toppan represents and warrants that (i) Toppan has been granted the opportunity to ask questions of, and receive answers from, representatives of the Company concerning the Company and the terms and conditions of the purchase of
the CDT Shares and to obtain any additional information that Toppan deems necessary, (ii) Toppan’s knowledge and experience in financial and business matters is such that Toppan is capable of evaluating the merits and risk of the
investment in the CDT Shares and (iii) Toppan has carefully reviewed the terms and provisions of the By-Laws and the Registration Rights Agreement 
  

 4 

 and has evaluated the restrictions and obligations contained therein. In furtherance of the foregoing, Toppan represents
and warrants that (i) no representation or warranty, express or implied, whether written or oral, as to the financial condition, results of operations, prospects, properties or business of the Company or as to the desirability or value of an
investment in the Company has been made to Toppan by or on behalf of the Company, except for those representations and warranties contained in Section 4, (ii) Toppan has relied upon its own independent appraisal and investigation, and the
advice of Toppan’s own counsel, tax advisors and other advisors, regarding the risks of an investment in the Company and (iii) Toppan will continue to bear sole responsibility for making its own independent evaluation and monitoring of
the risks of its investment in the Company. 
  
 (f) Accredited
Investor. Toppan represents and warrants that it is an “accredited investor” as such term is defined in Rule 501(a) promulgated under the Securities Act. 
  
 (g) Due Organization; Power and Authority, etc. Toppan represents and warrants that it is a kabushiki kaisha
duly formed, and validly existing under the laws of Japan, with all necessary power and authority to enter into this Agreement and the Joinder Agreement and to carry out the transactions contemplated herein and therein. 
  
 (h) Authorization; Enforceability. All actions required to be taken by
or on behalf of Toppan to authorize it to execute, deliver and perform its obligations under this Agreement and the Joinder Agreement have been taken, and this Agreement and the Joinder Agreement have been duly executed and delivered by Toppan. This
Agreement and the Joinder Agreement constitute the valid and binding obligations of Toppan, enforceable against Toppan in accordance with their respective terms, except as the same may be affected by bankruptcy, insolvency, moratorium or similar
laws, or by legal or equitable principles relating to or limiting the rights of contracting parties generally. 
  
 (i) Compliance with Laws and Other Instruments. The execution and delivery of this Agreement and the Joinder Agreement and the consummation by
Toppan of the transactions contemplated hereby and thereby in the manner contemplated hereby and thereby do not and will not conflict with, or result in a breach of any terms of, or constitute a default under, any agreement or instrument or any
statute, law, rule or regulation, or any judgment, decree, writ, injunction, order or award of any arbitrator, court or governmental authority which is applicable to Toppan or by which Toppan or any material portion of its properties is bound,
except for conflicts, breaches and defaults that, individually or in the aggregate, will not have a material adverse effect upon the financial condition, business or operations of Toppan or upon Toppan’s ability to enter into and carry out its
obligations under this Agreement or the Joinder Agreement. 
  

 5 

 4. The Company’s Representations, Warranties and Covenants. 
  
 (a) Due Organization; Power and Authority, etc. The Company
represents and warrants that it is a corporation duly formed, validly existing and in good standing under the laws of the State of Delaware, with all necessary power and authority to enter into this Agreement and the Joinder Agreement and to carry
out the transactions contemplated herein and therein. 
  
 (b)
Authorization; Enforceability. All actions required to be taken by or on behalf of the Company to authorize it to execute, deliver and perform its obligations under this Agreement and the Joinder Agreement have been taken, and this Agreement
and the Joinder Agreement have been duly executed and delivered by the Company. This Agreement and the Joinder Agreement constitute the valid and binding obligations of the Company, enforceable against the Company in accordance with their respective
terms, except as the same may be affected by bankruptcy, insolvency, moratorium or similar laws, or by legal or equitable principles relating to or limiting the rights of contracting parties generally. 
  
 (c) Compliance with Laws and Other Instruments. The execution and
delivery of this Agreement and the Joinder Agreement and the consummation by the Company of the transactions contemplated hereby and thereby in the manner contemplated hereby and thereby do not and will not conflict with, or result in a breach of
any terms of, or constitute a default under, any agreement or instrument or any statute, law, rule or regulation, or any judgment, decree, writ, injunction, order or award of any arbitrator, court or governmental authority which is applicable to the
Company or by which the Company or any material portion of its properties is bound, except for conflicts, breaches and defaults that, individually or in the aggregate, will not have a material adverse effect upon the financial condition, business or
operations of the Company or upon the Company’s ability to enter into and carry out its obligations under this Agreement and the Joinder Agreement. 
  
 (d) Capitalization; Shares. The authorized capital stock of the Company consists of (i) 21,450,000 shares of Class A Common Stock, of which
15,890,029.75 shares are issued and outstanding as of the date hereof, and (ii) 850,000 shares of Class B Common Stock, par value $.01 per share, of which 311,692 shares are issued and outstanding as of the date hereof. Except for (i) 1,503,950
outstanding options issued pursuant to the Company’s Stock Incentive Plans (including options that the Company is contractually bound to issue pursuant to employment letters, letters of commitment and consultant agreements), to purchase shares
of the Company’s Class A Common Stock, and (ii) the Warrant, dated August 12, 2000, to purchase 5,500 shares of the Company’s Class A Common Stock, issued to Heidrick & Struggles, Inc., there no outstanding subscriptions, options,
warrants, calls, conversions or other rights, 
  

 6 

 agreements, commitments, arrangements or understandings of any kind obligating the Company to issue or sell any capital
stock of the Company, or securities convertible into or exchangeable for any capital stock of the Company, and no authorization therefor has been given. Notwithstanding the foregoing, on July 16, 2002, KIA VI purchased 526,316 shares of the
Company’s Class A Common Stock at $16.15 a share and KEP VI purchased 92,879 shares of the Company’s Class A Common Stock at $16.15 a share, but these shares have not yet been issued, and the Company has engaged in discussions with an
affiliate of Hillman CDT and Hillman CDT 2000 concerning a $10 million investment for shares of the Company’s Class A Common Stock, but this investment has not yet been funded. In the event that this investment is not funded and assuming that
the Company has a need for financing, the Company expects to make alternative arrangements for the financing with KIA VI and/or KEP VI on terms to be agreed. Except as set forth in Article VIII of the By-Laws and except with respect to 928,793
shares of the Company’s Class A Common Stock that have been issued to Strategic Investors, there are no preemptive or similar rights on the part of any holders of capital stock of the Company. The CDT Shares, when issued and delivered in
accordance with the terms hereof, will be duly authorized, validly issued, fully paid and nonassessable, and free and clear of any Liens other than those created by Toppan or pursuant to this Agreement, the By-Laws or the Registration Rights
Agreement. 
  
 (e) Delivery of Financial Information. The
Company covenants and agrees that, commencing on the date hereof and for so long as Toppan holds 75% of the CDT Shares issued to it on the date hereof, the Company shall deliver to Toppan any regularly prepared financial information that the Company
delivers to any of its other stockholders in their capacity as stockholders; provided that disclosure of such information does not violate any preexisting confidentiality obligations. The information rights provided hereunder shall terminate
upon the completion of the Company’s IPO; provided, however, that for so long as Toppan holds more than 1.5% of the issued and outstanding shares of the Company’s Class A Common Stock, for a period of 3 years following such IPO, the
Company shall deliver to Toppan copies of any filings, reports, and associated documents filed with the Securities and Exchange Commission, or any other securities exchange or regulatory agency. The Company’s obligation to deliver any financial
information to Toppan hereunder shall be contingent on Toppan’s execution and delivery of a confidentiality agreement in a form reasonably acceptable to the Company with respect to such financial information. 
  
 (f) Inspection Rights. The Company covenants and agrees that,
commencing on the date hereof and for so long as Toppan holds more than 1.5% of the issued and outstanding shares of the Company’s Class A Common Stock, Toppan shall have, at its own expense, the right to inspect the facilities and financial
records of the Company and each of its subsidiaries and to discuss the business, operations and conditions of the Company and its subsidiaries with the Company’s officers during the 
  

 7 

 regular business hours of the Company and its subsidiaries; provided that the Company is not required to cooperate
with any inspection requests of Toppan that are unreasonable or that may interfere with the business of the Company. Toppan’s inspection rights hereunder shall terminate upon completion of the Company’s IPO. The Company’s obligation
to allow any inspections by Toppan hereunder shall be contingent on Toppan’s execution and delivery of a confidentiality agreement in a form reasonably acceptable to the Company with respect to any information that Toppan may obtain in such
inspections. 
  
 (g) Amendment to the Registration Rights
Agreement. The Company and the Majority Investors covenant and agree that, prior to filing a registration statement with respect to any shares of the Class A Common Stock or other equity securities convertible into Class A Common Stock, they
shall amend Section 3(c) of the Registration Rights Agreement to include a new clause (v) to the effect that copies of all documents proposed to be filed with the Commission (as such term is defined in the Registration Rights Agreement) in
connection with a registration shall be furnished to one counsel who shall be designated by the Minority Investors and the Management Stockholders (it being understood that, for purposes of the Registration Rights Agreement, Toppan and any other
Strategic Investors shall be Minority Investors thereunder). 
  
 5. Public Announcements. With respect to any announcement or disclosure concerning the transactions that are subject of this Agreement and the Joinder Agreement, dated as of the date hereof, by and between the Company and Toppan (the
“Transactions”), that may be made by the Company or Toppan to the financial community, governmental agencies or the public generally, the Company and Toppan covenant that they shall use reasonable efforts to consult and agree in
advance on the timing and content of any such announcement or disclosure; provided, however, that the Company and Toppan acknowledge and agree that they shall publicly announce the consummation of the Transactions. 
  
 6. Strategic Investors. Toppan acknowledges and agrees that:
(a) the Company contemplates issuing shares of Class A Common Stock to additional investors who shall be Strategic Investors; (b) the Majority Investors and the Company intend to amend the By-Laws in order to create a new class of
stockholders, which shall consist of the Strategic Investors; (c) the Strategic Investors shall be subject to the same transfer restrictions and drag-along obligations as set forth in Sections 7 and 8 hereunder and shall enjoy the same
tag-along rights, preemptive rights and consent rights as set forth in Sections 8, 9 and 10 hereunder, including, but not limited to, any termination provisions relating thereto and definitions used therein; (d) Toppan shall be included in
the class of Strategic Investors; and (e) Toppan’s tag-along rights, drag-along obligations and preemptive rights as set forth in Sections 8 and 9 hereunder shall be shared on a pro rata basis with the other Strategic Investors.
Toppan further acknowledges and agrees that 
  

 8 

 any amendment of the By-Laws as contemplated by this Section 6 or the Company’s issuance of any shares of Class A
Common Stock to any Strategic Investors shall not require consent of Toppan. 
  
 7. Restrictions on Transfer of the Shares. No shares of Class A Common Stock, including, but not limited to, the CDT Shares, or any other equity securities of the Company acquired by Toppan after the date
hereof, whether owned by Toppan or any of its Permitted Transferees, nor any interest therein nor any rights relating thereto, may be Transferred without the consent of the board of directors of the Company; provided that, any such shares of
Class A Common Stock or other equity securities may be Transferred by Toppan without such consent to any Permitted Transferee who agrees to be bound by the terms of this Agreement pursuant to an agreement reasonably acceptable to the Company, or
pursuant to Section 8 hereof or the Registration Rights Agreement. The restrictions on transfer contained in this Section 7 shall terminate upon the occurrence of a Termination Event. 
  
 8. Tag-Along and Drag-Along Rights. 
  
 (a) Tag-Along Rights. For so long as Toppan holds 75% of the Shares issued to it on the date hereof, if at any time a
Majority Investor or a group of Majority Investors proposes to directly or indirectly sell any shares of Class A Common Stock to any Third Party Investor (a “Proposed Purchaser”), whether in a private sale, merger or other
transaction (other than a registered public offering) (a “Proposed Sale”), and the shares proposed to be sold in such Proposed Sale represent more than 25% of the total number of the then issued and outstanding shares of common
stock of the Company, then such Majority Investor or group of Majority Investors shall promptly deliver to Toppan written notice (a “Sale Notice”) of such Proposed Sale and the material terms of the Proposed Sale as of the date of
such Sale Notice, including the aggregate number of shares of Class A Common Stock the Proposed Purchaser is willing to purchase and the proposed closing date of the Proposed Sale, not less than 20 days prior to such proposed closing date. If within
10 days of the delivery of the Sale Notice, such Majority Investor or group of Majority Investors receives a written request from Toppan (a “Sale Request”) to include shares of Class A Common Stock held by Toppan in the Proposed
Sale, the Class A Common Stock held by Toppan shall be so included as provided therein, subject to the limitation set forth in the last sentence of this Section 8(a); provided, however, that any Sale Request shall be irrevocable unless
(x) there shall be a material adverse change in the terms of such Proposed Sale or (y) as otherwise mutually agreed to in writing by Toppan and such Majority Investor or group of Majority Investors. Subject to clause (e) in the first
sentence of Section 6 hereof, the maximum number of shares of Class A Common Stock that Toppan shall be permitted to include in a Proposed Sale pursuant to a Sale Request shall be the product of (i) the aggregate number of shares of Class A
Common Stock the Proposed Purchaser is willing to purchase, as set forth in the Sale 
  

 9 

 Notice, and (ii) a fraction, the numerator of which shall be the number of shares of Class A Common Stock that
Toppan holds and the denominator of which shall be the number of shares of Common Stock then held by such Majority Investor or group of Majority Investors. 
  
 (b) Drag-Along Rights. At any time a Majority Investor or group of Majority Investors proposes to directly or indirectly sell any shares of Class A
Common Stock to a Proposed Purchaser in a Proposed Sale, and the shares proposed to be sold represent more than 25% of the total number of the then issued and outstanding shares of common stock of the Company, then such Majority Investor or group of
Majority Investors may deliver to Toppan written notice (a “Drag-Along Notice”) of such Proposed Sale and the material terms of the Proposed Sale as of the date of the Drag-Along Notice, including the number of shares of Class A
Common Stock that the Proposed Purchaser is willing to purchase and the proposed closing date of the Proposed Sale, not less than 20 days prior to such proposed closing date. Subject to clause (e) in the first sentence of Section 6 hereof, Toppan
hereby agrees to sell to such Proposed Purchaser that number of shares of Class A Common Stock equal to the product of (i) the number of shares of Class A Common Stock then held by Toppan and (ii) a fraction, the numerator of which
shall be the number of shares of Common Stock that such Majority Investor or group of Majority Investors proposes to sell in the Proposed Sale and the denominator of which shall be number of shares of Common Stock then held by such Majority Investor
or group of Majority Investors. 
  
 (c) Terms of the Proposed
Sale. Shares of Class A Common Stock held by Toppan that are included in a Proposed Sale to a Proposed Purchaser pursuant to this Section 8 shall be sold to such Proposed Purchaser on the same terms and subject to the same conditions applicable
to the shares of Class A Common Stock that the Majority Investor or group of Majority Investors proposes to sell in the Proposed Sale. Such terms and conditions shall include, without limitation, (i) the sale consideration (which shall be
reduced by the fees and expenses incurred by the Majority Investor or group of Majority Investors in connection with the Proposed Sale, but which shall not include any amounts payable to the Majority Investor or group of Majority Investors as an
advisory, consulting, transaction or other similar fee payable by the Company in connection with the Proposed Sale) and (ii) the provision of information, representations, warranties, covenants and requisite indemnifications, provided,
however, that any representations and warranties relating specifically to any stockholder shall only be made by that stockholder and any indemnification provided by the stockholders shall be on a several, not joint, basis based on the number
of shares of Class A Common Stock (including shares of Class B Common Stock included in the Proposed Sale) being sold by each stockholder in the Proposed Sale; provided, further, however, that the form of consideration to be
received by the Majority Investor or group of Majority Investors in connection with a Proposed Sale may be different from that received by Toppan so long as the value of the 
  

 10 

 consideration to be received by the Majority Investor or group of Majority Investors is the same or less than that to be
received by Toppan (as reasonably determined by the Board of Directors of the Company in good faith). Toppan agrees that it shall execute such other agreements or documents as the Majority Investor or group of Majority Investors may reasonably
request in connection with the consummation of a Proposed Sale and the transactions contemplated thereby, including, without limitation, purchase agreements, proxies, written consents in lieu of meetings, waivers of appraisal rights and custody
agreements and powers of attorney in favor of the Majority Investor or group of Majority Investors with respect to any shares of Class A Common Stock to be sold by Toppan in the Proposed Sale. Toppan shall not exercise any dissenter’s rights
with respect to the consummation of any Proposed Sale; provided, however, that Toppan shall not be required to execute, deliver or otherwise consent to any agreement or document that materially alters any existing rights of Toppan
(other than as may apply to all stockholders of the Company) or imposes any liabilities or obligations on Toppan that are disproportionate to those imposed on the Majority Investors or group of Majority Investors or any other party transferring any
shares of Class A Common Stock pursuant to any tag along or drag along rights hereunder. 
  
 (d) Coordination. In the event that a Majority Investor or group of Majority Investors delivers a Drag-Along Notice to Toppan, such Majority Investor or group of Majority Investors shall not also be required to
deliver a Tag-Along Notice to Toppan. 
  
 (e) Termination.
Upon the occurrence of a Termination Event, the rights and obligations of the Majority Investors and Toppan under this Section 8 shall terminate. 
  
 (f) Registered Public Offering. With respect to a registered public offering, the Majority Investors and Toppan shall have the rights and
obligations set forth in the Registration Rights Agreement, and such rights and obligations shall not be affected by this Section 8. 
  
 9. Preemptive Rights. In the event that the Company proposes a Restricted New Issue, Toppan shall have the right, exercisable for a 14-day period
after the Company has given notice to Toppan of such proposed Restricted New Issue, to purchase a proportion of such shares of the Restricted New Issue equal to Toppan’s percentage ownership on a fully-diluted basis of Common Stock as of a
record date to be set by the Board of Directors of the Company not more than 30 days prior to the date of such Restricted New Issue. The price or prices and terms for such shares of the Restricted New Issue to be offered to Toppan shall be identical
to the price or prices and terms for the shares of the Restricted New Issue proposed to be issued to others. Upon the earlier of (i) the occurrence of a Termination Event, (ii) the date on which Toppan sells any 
  

 11 

 shares of Common Stock, any rights, options or warrants to purchase shares of Common Stock, or any securities that are,
or may become, convertible into or exchangeable for Common Stock or (iii) the date on which Toppan’s percentage ownership on a fully-diluted basis of Common Stock falls below 1%, Toppan’s rights under this Section 9 shall terminate.

  
 10. Amendment to the By-Laws. Any proposed amendment to
the By-Laws that would adversely affect Toppan or the other Strategic Investors must be approved by the affirmative vote of a majority of the voting power of all issued and outstanding Class A Common Stock owned by such Strategic Investors;
provided that the following actions shall not be deemed to adversely affect the Strategic Investors: (i) the Company’s issuance of Class A Common Stock or any other equity securities to the Majority Investors, (ii) the
Company’s issuance of Class A Common Stock or any other equity securities to any new or existing investors with rights that are pari passu with or inferior to those granted to the Strategic Investors or (iii) the amendment of the
By-Laws to include the provisions set forth or relating to Sections 6, 7, 8, 9 and 10 hereof. 
  
 11. Defined Terms. 
  
 “Affiliate” shall mean, with respect to a specified Person, any Person that directly or indirectly controls, is controlled by, or is under common control with the specified Person. As used in this definition, the term
“control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise. 
  
 “Class B Common Stock” shall mean the Company’s Class B Common
Stock, par value $.01 per share. 
  
 “Common Stock”
shall mean the Class A Common Stock and the Class B Common Stock. 
  
 “Hillman CDT” shall mean Hillman CDT LLC, a Delaware limited liability company. 
  
 “Hillman CDT 2000” shall mean Hillman CDT 2000 LLC, a Delaware limited liability company. 
  
 “IPO” shall mean an underwritten initial public offering of common
stock of the Company having an aggregate offering value (measured by the Company’s proceeds before underwriters’ discounts and selling commissions) of at least $25 million and after which an established trading market exists for common
stock. 
  

 12 

 “Kelso Designee” shall mean board members of Kelso & Companies, Inc., the Louis &
Patricia Kelso Trust, officers and directors of any current or former Kelso & Co. portfolio company, any other individuals designated by KIA VI and KEP VI, and any permitted transferee of any such Person under their respective stockholders’
agreement with KIA VI and KEP VI. 
  
 “KEP VI” shall
mean KEP VI LLC, a Delaware limited liability company. 
  
 “KIA VI” shall mean Kelso Investment Associates VI, L.P., a Delaware limited partnership. 
  
 “Liens” shall mean debts, claims, security interests, liens, encumbrances, pledges, assessments, royalty payments, restrictions, charges,
liabilities and obligations of every nature. 
  
 “Majority
Investors” shall mean, together, Hillman CDT, Hillman CDT 2000, Hillman Capital Management LLC, a Delaware limited liability company, Hillman Capital Management 2000 LLC, a Delaware limited liability company, KIA VI, KEP VI, the respective
Affiliates of any of the foregoing, and any Kelso Designee. 
  
 “Management Stockholders” shall mean the employees of the Company or its subsidiaries who are listed on Schedule A of the Management Stockholders Agreement, as such Schedule A may be amended from time to time. 
  
 “Management Stockholders Agreement” shall mean the Management
Stockholders Agreement, dated as of January 31, 2001, among the Company and certain of its employees. 
  
 “Minority Investors” shall mean the Persons set forth on Annex A to the By-Laws and the employees of the Company listed on Schedule A to the
Management Stockholders Agreement, as such Schedule A may be as amended from time to time. 
  
 “New Securities” shall mean: (i) any shares of Common Stock, whether authorized now or not; (ii) any rights, options or warrants to purchase shares of Common Stock; and (iii) any
securities that are, or may become, convertible into or exchangeable for Common Stock; provided that, the term “New Securities” does not include: (A) shares of Common Stock that are issuable upon the exercise of the rights,
options or warrants described in clause (ii) above or Section 4(d) hereof or the conversion or exchange of the securities described in clause (iii) above; (B) any securities offered to the public pursuant to a registration statement approved
by the Board of Directors of the Company and filed pursuant to the Securities Act; (C) any securities issued in connection with the acquisition of another Person by the Company by merger, stock purchase, purchase of substantially all the
assets of such Person or otherwise or other reorganization 
  

 13 

 approved by the Board of Directors of the Company; (D) any securities issued in connection with any borrowings,
direct or indirect, from financial institutions or other Persons by the Company that are approved by the Board of Directors of the Company, whether or not presently authorized, including any type of loan or payment evidenced by any type of debt
instrument; (E) any securities issued in connection with any equipment leases that are approved by the Board of Directors of the Company; (F) any securities issued to employees, consultants, officers or directors of the Company
pursuant to any stock option plan, stock purchase plan, stock bonus arrangement or sales representative agreement approved by the Board of Directors of the Company; (G) any securities issued in connection with any stock split, reverse stock
split, stock dividend, merger, recapitalization or other similar event if an adjustment has been made to the shares held by Toppan as a result of such event; and (H) any shares of Class A Common Stock issued upon conversion of shares of Class
B Common Stock. 
  
 “Permitted Transferee” shall mean
any Person who: (i) is an Affiliate of Toppan and (ii) acquires shares of Class A Common Stock or other equity securities of the Company from Toppan in a Transfer permitted pursuant to Section 7 hereof. Any such Person shall be a
“Permitted Transferee” only with respect to shares so acquired. 
  
 “Person” shall mean an individual, corporation, partnership, limited liability company, joint venture, association, trust or other entity or organization, including a government or political subdivision or
an agency or instrumentality thereof. 
  
 “Restricted New
Issue” shall mean any issuance of New Securities after the date hereof at a price of less than $16.15 per share of Common Stock, or if the New Securities are those referred to in clause (ii) or (iii) of the definition of “New
Securities”, at a price that is less than the equivalent of $16.15 per share of Common Stock, as such prices may be adjusted from time to time in the good faith judgment of the Board of Directors of the Company to reflect any stock split,
reverse stock split, stock dividend, merger, recapitalization, or other similar event. The price of any New Security referred to in clause (ii) or (iii) of the definition of “New Securities” shall be deemed to be the price paid for such
security plus the exercise, conversion or exchange price payable in order to exercise, convert or exchange such security for Common Stock. 
  
 “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Securities and Exchange Commission
thereunder. 
  
 “Strategic Investor” shall mean any
Person, including, but not limited to, Toppan, who: (i) purchases more than a 1% Class A Common Stock ownership interest in the Company at any time on or after October 16, 2001 and (ii) is designated as a “Strategic Investor”
in the purchase agreement pursuant to which such Person purchases such ownership interest. 
  

 14 

 “Termination Event” shall mean the first to occur of the closing of (A) an IPO or
(B) a sale of Class A Common Stock by the Majority Investors to a Third Party Investor whether in a stock sale transaction, merger or otherwise, following which sale a majority of the issued and outstanding shares of the Class A Common Stock
of the Company are owned by Third Party Investors. 
  
 “Third
Party Investor” shall mean any Person other than the Majority Investors, the Minority Investors and the Strategic Investors, including, but not limited to, Toppan, and including any Affiliate of any of the foregoing. 
  
 “Transfer” shall mean any direct or indirect sale, assignment,
mortgage, transfer, pledge or other disposition. 
  
 12.
Miscellaneous. 
  
 (a) Binding Effect; Benefits.
This Agreement shall be binding upon and inure to the benefit of the parties to this Agreement and their respective successors and permitted assigns. Nothing in this Agreement, express or implied, is intended or shall be construed to give any Person
other than the parties to this Agreement and their respective successors or permitted assigns any legal or equitable right, remedy or claim under or in respect of any agreement or any provision contained herein. 
  
 (b) Waiver. The waiver by either party hereto of a breach of any
provision of this Agreement shall not operate or be construed as a waiver of any preceding or succeeding breach and no failure by either party to exercise any right or privilege hereunder shall be deemed a waiver of such party’s rights or
privileges hereunder or shall be deemed a waiver of such party’s rights to exercise the same at any subsequent time or times hereunder. 
  
 (c) Amendments. This Agreement may be amended, modified or supplemented only by the agreement of the parties hereto. 
  
 (d) Assignability. Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be assignable by the Company without the prior written consent of Toppan or by Toppan without the prior written consent of the Company. 
  
 (e) Governing Law. This Agreement shall be governed by and construed
and interpreted in accordance with, the law of the State of Delaware, without giving effect to the choice of law principles thereof. 
  
 (f) Notices. All notices and other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to

  

 15 

 have been duly given if (a) delivered personally, (b) mailed, certified or registered mail with postage
prepaid, (c) sent by next-day or overnight mail or delivery or (d) sent by fax, as follows: 
  

	 	(i)	If to the Company, to it at: 

  
 c/o Cambridge Display Technology Limited 
 Greenwich House 
 Madingley House 
 Madingley Road 
 Cambridge CB3 0TX ENGLAND 
 Fax: 011-44-1223-723-503 
 Attention: Eric Lucas 
  
 with a copy to: 
  
 Debevoise & Plimpton 
 919 Third Avenue 
 New York, NY 10022 
 Fax: 212-909-6836 
 Attention: 
  

	 	(ii)	If to Toppan, to it at: 

  
 Toppan Printing Co., Ltd. 
 1, Kanda Izumicho 
 Chiyoda-ku, Tokyo 101-0024 JAPAN 
  
 with a copy to: 
  
 Squire, Sanders & Dempsey L.L.P. 
 Ebisu Prime Square Tower, 16F 
 1-1-39 Hiroo 
 Shibuya-ku, Tokyo 150-0012 JAPAN 
 Fax: 03-5774-1818 
 Attention: Stephen E. Chelberg, Esq. 
  
 , or to such other Person or
address as either party shall specify by notice in writing to the other party. All such notices, requests, demands, letters, waivers and other communications shall be deemed to have been received (w) if by personal delivery on the day after
such delivery, (x) if by certified or registered mail, on the fifth business day after the mailing thereof, (y) if by next-day or overnight mail or delivery, on the day delivered or (z) if by fax, on the next day following the
day on which such fax was sent. 
  

 16 

 (g) Headings. The headings contained herein are for convenience and shall not control or affect
the meaning or interpretation of any provision hereof. 
  
 (h)
Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and which together shall constitute one and the same agreement. A signature of a party delivered by telecopy shall
constitute an original signature of such party. 
  
 (i)
Severability. In case any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, the validity and enforceability of the remaining provisions shall not in any way be affected thereby. 
  
 (j) Entire Agreement. This Agreement, the By-Laws and the Registration
Rights Agreement constitute the entire agreement of the parties hereto with respect to the subject matter hereof and shall supersede all prior agreements, arrangements, understandings, documents, instruments and communications, whether written or
oral, with respect to such subject matter. 
  

 17 

 IN WITNESS WHEREOF, the Company and Toppan have executed this Agreement as of the date first set forth
above. 
  

			
	 CDT ACQUISITION CORP.

		
	 By:
	 	 /s/ David Fyfe

	 Name:
	 	 David Fyfe

	 Title:
	 	 Chief Executive Officer

	
	 TOPPAN PRINTING CO., LTD.

		
	 By:
	 	 /s/ Hideaki Kawai

	 Name:
	 	 Hideaki Kawai

	 Title:
	 	 Managing Director

	
	 With respect to Sections 4(g) and 8:

	
	 KELSO INVESTMENT ASSOCIATES VI, L.P.

		
	 By:
	 	 Kelso GP VI, LLC,

	 	 	 its general partner

		
	 By:
	 	 /s/ Phil Berney

	 	 	 Managing Member

	
	 KEP VI, LLC

		
	 By:
	 	 /s/ Gerald Paul Hillman

	 	 	 Managing Member

			
	 HILLMAN CDT LLC

		
	 By:
	 	 Hillman Capital Management LLC,

	 	 	 its managing member

		
	 By:
	 	 Gerald Paul Hillman

	 Name:
	 	 Gerald Paul Hillman

	 Title:
	 	 Managing Director

	
	 HILLMAN CDT 2000 LLC

		
	 By:
	 	 Hillman Capital Management 2000 LLC,
 its managing member

		
	 By:
	 	 /s/ Gerald Paul Hillman

	 Name:
	 	 Gerald Paul Hillman

	 Title:
	 	 Managing Director

  

 iii

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