UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): March 26, 2013

 

 

The ExOne Company

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-35806   46-1684608

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

127 Industry Boulevard

North Huntingdon, Pennsylvania

  15642
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (724) 863-9663

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01 Entry into a Material Definitive Agreement

Entry Into Indemnification Agreements with Directors and Certain Officers

On March 26, 2013, the Board of Directors of the Company approved a form of indemnification agreement (“Indemnification Agreement”) to be entered into between the Company and each of its directors and executive officers (the “Indemnitees”). Pursuant to this authorization, the Company will enter into an Indemnification Agreement with each of its current directors and executive officers.

Pursuant to the Indemnification Agreement, the Company will indemnify the directors and the executive officers to the fullest extent permitted under Delaware law against all expenses and, in the case of proceedings other than those brought by or in the right of the Company, judgments, fines, penalties and amounts actually and reasonably paid in settlement by the Indemnitee or on the Indemnitee’s behalf in connection with proceedings in which the Indemnitiee is involved. The Company will also indemnify the Indemnitee to the fullest extent permitted by law against all expenses actually and reasonably incurred by or on the Indemnitee’s behalf in connection with any such proceeding or defense, in whole or in part, to which the Indemnitee is a party or participant and in which the Indemnitee is successful. In addition, and subject to certain limitations, each Indemnification Agreement provides for the advancement of expenses incurred by or on behalf of the Indemnitee in connection with any proceeding not initiated by the Indemnitee, and the reimbursement to the Company of the amounts advanced to the extent that it is ultimately determined that the Indemnitee is not entitled to be indemnified by the Company. Additionally, the Indemnification Agreements provide for the provision of directors’ and officers’ liability insurance policies. The provisions of the Indemnification Agreement applies with respect to all periods of such Indemnitee’s service and shall continue so long as such Indemnitee shall be subject to a possible claim, even though the directors or executive officers may have ceased to be directors or executive officers of the Company.

The above description of the Indemnification Agreement does not purport to be complete and is qualified in its entirety by reference to the form of such Indemnification Agreement, which is attached hereto as Exhibit 10.1.

Acquisition of Assets from Variable Interest Entities

On March 27, 2013, the Company entered into two asset purchase agreements pursuant to which the Company’s wholly-owned subsidiary, ExOne Americas LLC (formerly known as Pro Metal RCT, LLC), a Delaware limited liability company, acquired certain assets, including property and equipment (principally land, buildings and machinery and equipment) held by its two variable interest entities, Troy Metal Fabricating, LLC (“TMF”) and Lone Star Metal Fabrication, LLC (“Lone Star”), and assumed all outstanding debt of such variable interest entities, including certain related interest rate swap agreements. Lone Star is owned by Rockwell Forest Products and TMF is owned by the S. Kent Rockwell Revocable Trust. S. Kent Rockwell, our chairman and Chief Executive Officer, is the trustee and beneficiary of the S. Kent Rockwell Revocable Trust, which is the 100% owner of Rockwell Venture Capital, Inc. which is the 100% owner of RFP.

In exchange for the acquisition of assets, ExOne Americas LLC paid approximately $1.9 million to TMF and approximately $0.2 million to Lone Star. These payments included a return of capital to these entities, which are controlled by Mr. Rockwell, of approximately $1.4 million. There was no gain, loss or goodwill generated as a result of this transaction.

Simultaneous with the completion of this transaction, the Company also repaid all of the outstanding debt and settled the related interest rate swap agreements assumed from the variable interest entities, resulting in a payment of approximately $4.7 million. The asset purchase agreements contain customary representations, warranties and covenants.

The consideration paid to TMF and Lone Star was derived by the Company based upon the net book value of the related property and equipment at the variable interest entity level. The Company used a portion of the net proceeds from its initial public offering of common stock in February 2013 to pay the consideration to TMF and Lone Star under the asset purchase agreements.


The above description of the asset purchase agreements does not purport to be complete and is qualified in its entirety by reference to the TMF Asset Purchase Agreement and the Lone Star Asset Purchase Agreement, which are attached hereto as Exhibits 2.1 and 2.2, respectively.

Item 5.03 Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

On March 26, 2013, the Board determined that it was in the best interests of the Company and its stockholders to amend and restate the Bylaws of the Company and by resolution authorized, approved and adopted the Amended and Restated Bylaws of the Company (the “Amended and Restated Bylaws”), replacing the former Bylaws of the Company therewith in their entirety. The Amended and Restated Bylaws became effective immediately upon their adoption.

The Amended and Restated Bylaws are substantially the same as the prior version of the Bylaws, with the following substantive changes. The Amended and Restated Bylaws provide broad indemnification rights to officers, directors and other persons and related conditions and procedures with respect thereto, including the advancement of expenses incurred by such persons in connection with certain claims. Additionally, the Amended and Restated Bylaws permit the Company to obtain directors’ and officers’ liability insurance.

The above description of the Amended and Restated Bylaws does not purport to be complete and is qualified in its entirety by reference to such Amended and Restated Bylaws, which is attached hereto as Exhibit 3.1.

Item 5.05 Amendments to the Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics.

The Board approved administrative amendments to the Company’s Code of Ethics and Business Conduct (the “Code”), effective March 26, 2013, which applies to all directors, officers and employees of the Company. The description is a summary only and is qualified in its entirety by reference to the full text of the Code, which is filed herewith as Exhibit 14.1. The Code, as amended, has also been posted to the Company’s website at www.exone.com .

Item 5.08 Shareholder Director Nominations

The Board of Directors of Company (the “Board”) has determined, in accordance with the Company’s Bylaws, that the Company will hold its first annual meeting of stockholders (the “2013 Annual Meeting”) at 10:00 a.m. on August 19, 2013.

The Board established the close of business on June 24, 2013 as the record date for determination of stockholders entitled to receive notice of and to vote at the Annual Meeting and at any adjournments or postponements thereof.

The Board also established that any shareholder proposal to be submitted for inclusion in the Company’s proxy materials for the 2013 Annual Meeting must be submitted to the Secretary of the Company on or before April 11, 2013. In addition, the Board also established that any stockholder seeking to have a nominee to the Board to be included in the Company’s proxy materials for the 2013 Annual Meeting must provide notice to the Company of its intent to do so on a Schedule 14N and file that notice with the Securities and Exchange Commission on or before April 11, 2013. Finally, the Board established that any stockholder seeking to present a proposal for consideration at the 2013 Annual Meeting which will not be included in the proxy materials for the 2013 Annual Meeting must be received by the Secretary of the Company on or before June 20, 2013. Any proposal or nomination made by any stockholder with respect to the 2013 Annual Meeting must comply with the rules and regulations promulgated by the Securities and Exchange Commission and the procedures set forth in the Company’s Bylaws.

The Company will, by order of the Board, mail materials related to the 2013 Annual Meeting in compliance with the rules and regulations of the SEC.


Item 9.01 Financial Statements and Exhibits

 

  (c) Exhibits. The following exhibits are being filed in accordance with Item 601 of Regulation S-K and General Instructions B.2 to this Form:

 

Exhibit No,

  

Description

2.1    Asset Purchase Agreement, dated March 27, 2013, by and between the Company and TMF
2.2    Asset Purchase Agreement, dated March 27, 2013, by and between the Company and Lone Star
3.1    Amended and Restated Bylaws
10.1    Form of Indemnification Agreement
14.1    Code of Ethics and Business Conduct

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

THE EXONE COMPANY
By:   /s/ John Irvin
  John Irvin
  Chief Financial Officer

Dated: March 29, 2013

Exhibit 2.1

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT made as of the 27th day of March, 2013, (“Execution Date”) by and between TROY METAL FABRICATING, LLC, a Delaware limited liability company with a registered address of c/o Wilmington Trust SP Services (Delaware), Inc., 1105 N. Market Street, Suite 1300, Wilmington, DE 19801 (hereinafter referred to as “Seller”) and PROMETAL RCT, LLC, a Delaware limited liability company with a registered address of c/o Wilmington Trust SP Services (Delaware), Inc., 1105 N. Market Street, Suite 1300, Wilmington, DE 19801 (hereinafter referred to as “Buyer”).

WHEREAS, Seller owns certain real property, fixtures, and personal property located at 2341 Alger Street, Troy, Michigan 48083 and certain personal property located in Harris County, Texas, all as more specifically described on Exhibit A attached hereto and incorporated by reference herein (the “Assets”), which Seller uses in its business operations (the “Business”); and

WHEREAS, Buyer currently leases the Assets from Seller under various lease agreements; and

WHEREAS, Seller desires to sell to Buyer and Buyer desires to purchase from Seller all of Seller’s right, title and interest in the Assets, all in accordance with the further terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:

1. SALE OF ASSETS. Except as is otherwise provided in this Agreement, Seller shall sell to Buyer and Buyer shall purchase, free and clear of all liens, mortgages, security interests, encumbrances and liabilities, the Assets from Seller. Seller shall retain all of its cash, cash equivalents and accounts receivable.

2. PURCHASE PRICE. In consideration of the sale of the Assets set forth in Section 1 hereof and the other terms and conditions of this Agreement, Buyer shall pay to Seller a purchase price of Five Million Eight Hundred Eighty One Thousand Four Hundred Fifty Five and 00/100 Dollars ($5,881,455.00) (hereinafter the “Purchase Price”). The Purchase Price shall be allocated among the Assets, such allocation being set forth on Exhibit B attached hereto. Seller shall be responsible for the cost of deed preparation and all matters of title clearance pertaining to the real property to be conveyed to Buyer. All costs of any title examination and report (interim title binder), title premiums and insurance pertaining to the real property to be conveyed to Buyer shall be paid by Seller. Any taxes and stamps assessed on the transfer of the real property from Seller to Buyer shall be paid by Seller. The balance of the closing costs pertaining to the real property to be conveyed to Buyer shall be allocated between Seller and Buyer according to custom in


Oakland County, Michigan. In addition, the real estate taxes shall be apportioned between the parties as of the Closing Date (as defined in Section 5) on their respective tax year assessment bases, i.e., fiscal or calendar. The payment of any of the Financial Obligations as defined in Section 7(i) shall be credited against the Purchase Price to be paid to Seller.

3. NO ASSUMPTION OF LIABILITIES. Buyer shall not assume any of the liabilities pertaining to the Assets or any liabilities of the Business or Seller.

4. PAYMENT OF PURCHASE PRICE. At the Closing (as defined in Section 5), Buyer shall either wire transfer to a bank account designated by Seller or issue a check to Seller for the Purchase Price less any amounts paid by Buyer to satisfy the Financial Obligations (as defined in Section 7(i)) of Seller.

5. CLOSING. The sale and transfer of the Assets (the “Closing”) shall take place at the offices of Buyer on or before March 27, 2013 (“Closing Date”), time being of the essence, or at such other place and at such time as the parties may mutually agree provided all other conditions in Sections 9 and 10 have been fulfilled or waived.

6. DOCUMENTS AND FURTHER REQUIREMENTS OF SELLER. Seller shall deliver at the Closing the following:

(a) A Bill of Sale covering those Assets that are not real property, substantially in the form of Exhibit C;

(b) A Warranty Deed to the real property located at 2341 Alger Street, Troy, Michigan 48083 in recordable form, subject to such terms and conditions as are set forth in this Agreement;

(c) A Good Standing Certificate issued by the Delaware Department of State, Division of Corporations dated within thirty (30) days of the Closing Date;

(d) A Good Standing Certificate issued by the Michigan Department of Licensing and Regulatory Affairs dated within thirty (30) days of the Closing Date; and

(e) Such other good and sufficient instruments of conveyance and transfer in a form satisfactory to Buyer’s counsel as shall be effective to vest in Buyer good and marketable title to the Assets.

7. SELLER’S REPRESENTATIONS AND WARRANTIES. Seller hereby makes the following representations and warranties to Buyer as of the Execution Date, and acknowledges Buyer’s reliance thereon, and between the Execution Date and the Closing Date, Seller shall take no actions that would render the representations and warranties made by Seller to Buyer untrue as of the Closing Date:

 

2


(a) Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and is properly registered to do business in the State of Michigan. Seller has full power and authority to enter into this Agreement and consummate the transactions on its part contemplated hereby. The execution and delivery of this Agreement, and the sale, transfer and other actions contemplated hereby have been duly authorized by the managing member of Seller, which is the only approval required of Seller. Neither the execution and delivery of this Agreement nor the consummation of the transactions herein by Seller constitute a violation or breach of applicable law or of Seller’s Certificate of Formation or Operating Agreement.

(b) There are no claims, actions, suits or proceedings pending or threatened against or affecting Seller, the Business and/or the Assets, or any portion thereof, nor are there any actions or proceedings by any federal, state, county or municipal department, commission, board, bureau, agency or other governmental instrumentality. Seller is not in default with respect to any order, writ, injunction or decree of any court or governmental department, commission, board, bureau, agency or instrumentality, which involves the possibility of any judgment or liability which may result in any material adverse change in the financial condition of Seller, the Business and/or the Assets.

(c) There are no attachments, executions, assignments for the benefit of creditors, or voluntary or involuntary proceedings in bankruptcy or under any other debtor relief laws contemplated by or pending or threatened against Seller.

(d) Seller has and will carry on the Business in substantially the same manner as it has previously been carried on. Seller shall not enter into any contract, commitment or transaction other than in the ordinary course of business. Seller shall not do any act or omit to do any act, or permit any act or omission to act, that will cause a material breach of any material contract, commitment or obligation by which it is bound.

(e) Seller neither owns, has in existence, has any rights or interest in or to, nor uses in the Business or in conjunction with the Assets:

(i) any trademark or any copyright, invention, letters patent or application for letters patent that have not been licensed to Buyer; or

(ii) any contract or commitment for the future purchase of, or payment for, machinery and equipment.

 

3


(f) This Agreement constitutes a legally binding obligation of Seller enforceable in accordance with its terms and conditions. The execution and delivery of this Agreement and the performance by Seller will not conflict with, result in a breach of, or cause a default under any agreement, order of court or other restriction to which Seller is subject or by which Seller is bound.

(g) Seller has not contracted and shall not contract to sell or transfer to any third party all or any part of the Assets.

(h) Seller has filed or caused to be filed all federal, state and local tax returns, and reports of Seller that are due and required to be filed and has paid or caused to be paid all taxes due and any assessment of taxes received, except taxes or assessments that are being contested in good faith and have been adequately reserved against. All taxes, statutory contributions and payroll that may be or become due and payable, of whatever nature, whether due and owing either as a result of operations of Seller through and including the Closing Date or as a result of this transaction, have been or will be paid by Seller.

(i) As of the Closing Date, Seller will have good and marketable title to each Asset, free and clear of all liens, mortgages, security interests, encumbrances and liabilities, and all Assets are in good repair and condition and are suitable and sufficient for the conduct of the Business, and shall remain so through the Closing Date, normal wear and tear excepted. There are no mortgages, security interests, loans, interest rate swaps or other financial obligations of Seller (the “Financial Obligations”) other than those set forth on Exhibit D, and the Financial Obligations shall be terminated at Closing if not already terminated prior thereto.

(j) Seller has not adopted any retirement plan under the Employee Retirement Income Security Act of 1974, as amended, and is not a member of any controlled group under said Act.

(k) Seller has materially complied with all Federal, Michigan, Oakland County and municipal (and any agency thereof) laws, statutes, ordinances, rules, regulations and/or orders.

(l) In regard to the real property to be conveyed by Seller to Buyer as part of the assets:

(i) As of Closing, there are no adverse or other parties in possession of any part of the real property or any lessees, tenants at sufferance or trespassers thereof or thereon, or which have been disclosed by survey.

 

4


(ii) Seller has no knowledge and has not received notice of any pending or threatened condemnation or similar proceeding or assessment affecting the real property (sidewalks, sewers, other similar capital improvements) or any part thereof, nor to the knowledge, information and belief of Seller is there any such proceeding or assessment contemplated by any governmental authority.

(iii) Seller has received no legal notices to the effect that Seller, or any use of the real property, violated or has violated any applicable laws, codes, ordinances, regulations, statutes, rules and restrictions relating to the real property and/or the use thereof. Seller has not implicated the real property, or any portion of the real property, in any violation of any local, state or federal environmental law, regulation or permit as applicable thereto. There is no claim, governmental proceeding, adverse notice, judgment, cause of action, special assessment, or charge pending, whether asserted or unasserted, against or related in any way to any portion of the real property, or to Seller, with respect to the real property or any portion thereof, as a result of any violation of any local, state or federal environmental law, regulation or permit.

(iv) As of the Closing, without the express written consent of Buyer, no work will have been performed or will be in progress at the real property and no materials will have been delivered to the real property that might provide the basis for a mechanic’s, materialman’s or other lien against the real property or any portion thereof which is not dismissed or bonded off as of the relevant date; and Seller will operate and maintain the real property, or cause the same to be operated and maintained, in a normal manner from the Execution Date through the Closing.

(v) Seller has received no legal process to the effect that any default or breach exists, or as of the closing will exist, under any of the covenants, conditions, restrictions, zoning, rights-of-way or easements affecting the real property or any portion thereof.

(vi) As of the Closing, there will not be any action, suit or proceeding pending against Seller or the real property or any portion thereof, or relating to or arising out of the ownership of the real property, by any federal, state, county or municipal department, commission, board, bureau or agency or other governmental instrumentality. Any such judicial proceedings of record will be finally dismissed and terminated prior to the Closing.

(vii) There are no attachments, executions, assignments for the benefit of creditors, or voluntary or involuntary proceedings in bankruptcy or under any other debtor relief laws contemplated by Seller, or pending against Seller or the real property.

(viii) After the date of this Agreement, Seller shall not create or voluntarily permit to be created any liens, easements or other conditions affecting any portion of the real property without the prior written consent of Buyer (such consent not to be unreasonably withheld) or as permitted herein.

 

5


(ix) The real property has a zoning classification that will permit the current activities of Buyer under its lease with Seller on the real property; and there exists no notice to Seller of any uncorrected violations of building, safety or fire ordinances.

(x) There shall be no leases or any other agreements giving any person or persons the right to use or occupy any portion or all of the real property and no person shall be in possession of the real property except Buyer.

(xi) Except as specifically set forth in this Agreement, Seller makes no representations or warranties as to the condition or suitability of the real property for any particular use or purpose and Buyer is purchasing and taking title to the real property “AS IS”, “WHERE IS” and “WITH ALL FAULTS”.

(m) The representations and warranties of Seller shall survive the Closing.

8. BUYER’S REPRESENTATIONS AND WARRANTIES. Buyer represents and warrants that this Agreement constitutes a legally binding obligation of Buyer enforceable in accordance with its terms and conditions and has been approved by the managing member of Buyer in accordance with Buyer’s certificate of formation and operating agreement. The execution, delivery and performance by Buyer of its obligations hereunder will not conflict with, result in a breach of, or cause a default under any agreement, order of court or other restriction to which Buyer is subject.

9. CONDITIONS TO BUYER’S CLOSING. All obligations of Buyer hereunder are subject to fulfillment of the following conditions on or before the Closing Date:

(a) All of Seller’s representations and warranties herein are true, complete and accurate as of the date hereof, and Seller shall take no action that would render such representations and warranties untrue as of the Closing Date.

(b) No law, rule, regulation, order, writ or judgment of any court, arbitrator or other agency of government shall have prevented or prohibited the consummation of the transactions contemplated hereby.

(c) Seller shall have delivered to Buyer’s counsel a certificate from the managing member of Seller certifying to certain resolutions of the managing member of Seller approving this Agreement and the transactions and obligations contemplated hereunder.

(d) Buyer has secured a title insurance policy issued by a title insurance company authorized to insure titles in the State of Michigan insuring Buyer’s title to the real property to be conveyed by Seller in the full amount of the purchase price allocated to the real property and building.

 

6


(e) Seller shall grant and convey to Buyer good, marketable and fee simple title to the real property by Warranty Deed, free and clear of all mortgages, liens, encumbrances, security interests and/or claims of any nature whatsoever except to the extent of: (i) building and use restrictions of record; (ii) vehicular or pedestrian easements of record affecting the real property and being contiguous to the front, rear or side lot lines; (iii) water, sewer, gas, electric and telephone lines or easements therefor of record or as previously installed; provided, however, that said lines or easements shall not adversely affect the use of the real property for its intended purposes; and (iv) prior grants, reservations or leases of coal, oil, gas or other minerals as shown by instruments of record.

(f) Seller shall cancel and terminate at no cost or expense to Buyer all lease agreements between Buyer and Seller pertaining to the Assets, with Seller being permitted to retain all rent and lease payments under such leases for the month of March, 2013.

10. CONDITIONS TO SELLER’S CLOSING. All obligations of Seller hereunder are subject to fulfillment, prior to or on the Closing Date, of the following conditions:

(a) All representations, warranties, covenants and statements given by Buyer are true, complete and accurate from and after the Execution Date to and including the Closing Date and shall survive the Closing.

(b) No law, rule, regulation, order, writ or judgment of any court, arbitrator, or other agency of government shall have prevented or prohibited the consummation of the transaction contemplated hereby.

11. FAILURE OF THE CONDITIONS. In the event that Seller or Buyer fails to fulfill any of the conditions precedent to the transactions contemplated herein, Buyer, in the case of the failure of Seller to fulfill any condition precedent, or Seller, in the case of the failure of Buyer to fulfill any condition precedent owed to such party, may declare this Agreement null and void or may waive the fulfillment of such condition. If a party declares this Agreement null and void because a condition precedent has not been fulfilled, such party shall be permitted to bring an action against the other party for any damages incurred, but only to the extent such failed condition was a result of a breach of this Agreement by the other party.

12. INDEMNIFICATION . Seller and the managing member of Seller, jointly and severally, shall defend, indemnify and hold Buyer harmless from and against any and all liabilities, demands, damages, losses, judgments, expenses and obligations of, or claims arising out of the conduct of the Business and the ownership of the Assets

 

7


through the Closing; and all actual or potential claims, demands, liabilities, damages, losses and out of pocket expenses including reasonable attorneys fees whether or not reduced to judgment, order or award, caused by or arising out of the breach of any provision, term, condition, representation or warranty made by Seller in this Agreement or in any exhibit, list, certificate or document delivered by it pursuant hereto. Notwithstanding the foregoing, the managing member of Seller shall be liable under this Indemnification provision only to the extent of any amounts that the managing member may receive from Seller in the form of compensation and distributions. Buyer shall defend, indemnify and hold Seller harmless from and against all damages, losses and out of pocket expenses including reasonable attorney’s fees, caused by or arising out of the breach of any provision, term, condition, representation or warranty made by Buyer in this Agreement or in any exhibit, list, certificate or document delivered by it pursuant hereto. Promptly after any service of process by any third person in any litigation in respect of which indemnity may be sought from the other party pursuant to this Section 12, the party so served shall notify the indemnifying party of the commencement of such litigation, and the indemnifying party shall be entitled to assume the defense thereof at its expense with counsel of its own choosing.

13. RISK OF LOSS. Seller assumes the risk of loss, damage or destruction resulting from fire, theft or other casualty to the Assets to be sold hereunder from the date hereof through the Closing. In the event of a material loss, destruction or damage due to fire or other casualty prior to Closing, Buyer shall have the option of rescinding this Agreement or going forward with this Agreement without reduction in the Purchase Price provided that Seller assigns or pays over to Buyer all insurance proceeds attributable to the loss or damage of such items. Said option shall be exercised no later than ten (10) days after written notice from Seller to Buyer in the event of the loss or damage.

14. BROKER’S COMMISSIONS. The parties acknowledge that there are no broker’s commissions for the transactions set forth in this Agreement, and Seller shall indemnify and hold Buyer harmless for any such commissions.

15. AMENDMENT AND MODIFICATION. This Agreement may not be amended, modified or supplemented except by a written instrument executed by each of the parties hereto.

16. PRIOR AGREEMENTS SUPERSEDED. This Agreement, and the accompanying Exhibits, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and undertakings with respect to the matters covered hereby. There are no representations, promises, warranties, covenants or undertakings with respect to the matters covered hereby other than those expressly set forth herein or in the Exhibits.

 

8


17. WAIVER. The failure of any party to seek redress for violation of or to insist upon strict performance of any covenant or condition of this Agreement shall not be considered a waiver, nor shall it deprive that party of the right thereafter to insist upon strict adherence to that or any other term of this Agreement.

18. ASSIGNMENT. This Agreement is not assignable by either Buyer or Seller; provided, however, that Buyer may assign this Agreement to any affiliate of Buyer.

19. NOTICES . All notices shall be in writing and shall be (i) delivered in person, (ii) sent by registered or certified mail, return receipt requested, postage prepaid, to the address of the parties listed below or to such other address as such party shall have designated by proper notice, or (iii) sent by confirmed facsimile transmission with a duplicate copy sent by registered or certified mail in accordance with the preceding clause.

 

Buyer:

   Seller:

ProMetal RCT, LLC

   Troy Metal Fabricating, LLC

127 Industry Boulevard

   960 Penn Avenue

Irwin, PA 15642

   Suite 400
  

Pittsburgh, PA 15222

Attention: John Irvin

   Attention: Lisa Fera

With a copy to:

   With a copy to:

JoEllen Lyons Dillon, Chief Legal Officer

   Scott P. Magnuson, Esquire

The ExOne Company

   2651 Monroeville Boulevard

127 Industry Boulevard

   Suite 101

Irwin, PA 15642

   Monroeville, PA 15146

20. MANAGING MEMBER. The managing member of Seller acknowledges that the managing member will benefit from the sale of the Assets by Seller through distributions by Seller and that such benefits provide fair and adequate consideration for the managing member’s execution of this Agreement and being liable under the Indemnification provisions of Section 12 of this Agreement.

21. IRS Form 8594. Seller and Buyer shall each file a Form 8594 with their respective Federal income tax returns for the 2013 tax year. Seller and Buyer shall complete such Form consistently with the allocation of the Purchase Price as set forth on Exhibit B of this Agreement. Seller and Buyer shall each timely file their respective tax returns.

 

9


22. MISCELLANEOUS. This Agreement shall inure to the benefit of and be binding upon the parties hereto, their respective successors and permitted assigns. This Agreement shall be governed and interpreted in accordance with the laws of the Commonwealth of Pennsylvania except for the conveyance of the real property, which shall be governed by Michigan law. Each party shall bear such party’s expenses in connection with this Agreement regardless of whether the contemplated transactions are consummated. No remedies or rights herein conferred upon or provided to Seller or Buyer are intended to be exclusive of any remedy or right provided by law, but each shall be cumulative and shall be in addition to every other remedy or right given hereunder or now or hereafter existing at law or in equity, including specific performance, or by statute.

WITNESS the following signatures and seals.

 

WITNESS:

   

TROY METAL FABRICATING, LLC

/s/ Lisa A. Fera

   

By:

  /s/ S. Kent Rockwell
   

                         Managing Member

WITNESS:

   

MANAGING MEMBER

   

S. Kent Rockwell Revocable Trust

/s/ Lisa A. Fera

   

By:

  /s/ S. Kent Rockwell
   

                         Trustee

WITNESS:

   

PROMETAL RCT, LLC

/s/ JoEllen Lyons Dillon

   

By:

  /s/ John Irvin
   

Title: Chief Financial Officer

 

10


ASSET PURCHASE AGREEMENT

LIST OF EXHIBITS

 

Exhibit A    Assets
Exhibit B    Purchase Price Allocation
Exhibit C    Bill of Sale
Exhibit D    Existing Security Interests

 

11


EXHIBIT “A”

ASSETS

Real property located at 2341 Alger Street, Troy, MI 48083. Land in the City of Troy, County of Oakland, and State of Michigan described as:

Lots 5 and 6 of Jack Elwell’s Industrial Park Subdivision, according to the Plat thereof as recorded in Liber 178 of Plats, pages 13 through 16 of the Oakland County Records. Tax Identification No. 20-26-200-060 and recorded at LIBER 40344, Page 767

Building on the above described real property

S15 RCT Machine S/N 004

S15 RCT Machine S/N 020

S15 RCT Machine S/N 0018

S-Max Houston S/N 0005

S-Max Machine S/N 0008

S-Max Unit S/N 009

 

12


EXHIBIT “B”

PURCHASE PRICE ALLOCATION

 

 

Assets

  

Land located at 2341 Alger Street, Troy, MI 48083

   $ 112,475.00   

Building located at 2341 Alger Street, Troy, MI 48083

     887,857.00   

S15 RCT Machine S/N 004

     284,762.00   

S15 RCT Machine S/N 020

     334,286.00   

S15 RCT Machine S/N 0018

     392,857.00   

S-Max Houston S/N 0005

     1,142,622.00   

S-Max Machine S/N 0008

     1,305,940.00   

S-Max Unit S/N 009

     1,420,656.00   
  

 

 

 

TOTAL PURCHASE PRICE

   $ 5,881,455.00   
  

 

 

 

 

13


EXHIBIT “C”

BILL OF SALE

KNOW ALL MEN BY THESE PRESENTS, that pursuant to that certain Asset Purchase Agreement (the “Agreement”) dated March     , 2013, TROY METAL FABRICATING, LLC (“Seller”), for and in consideration of the Purchase Price paid under the Agreement by PROMETAL RCT, LLC (“Buyer”), at or before the sealing and delivery of these presents, the receipt of which is hereby acknowledged, has granted, bargained, sold, released and confirmed and by these presents does grant, bargain, sell, release and confirm unto Buyer, its successors and assigns, all the Assets (other than the real property) as more specifically described on Exhibit A attached to the Agreement (the “Property”), TO HAVE AND TO HOLD the Property.

AND Seller, for itself, its successors and assigns, hereby covenants that it is the lawful owner of the Property, and that it shall and will and forever defend by these presents the same and every part thereof unto Buyer, its successors and assigns, from and against all persons whomsoever.

WITNESS the due execution and sealing hereof the day of March, 2013.

 

WITNESS:

    TROY METAL FABRICATING, LLC
     

By:

   
          Managing Member

 

14


EXHIBIT “D”

MORTGAGES, SECURITY INTERESTS, LOANS,

INTEREST RATE SWAPS & OTHER FINANCIAL OBLIGATIONS

1) LaSalle Bank Midwest National Association Commercial Mortgage dated April 25, 2008 in the principal amount of $3,860,000

A) Capex Loan Note dated January 13, 2009 in the principal amount of $2,000,000

B) Capex Loan Note dated January 13, 2009 in the principal amount of $1,000,000

C) ISDA Interest Rate Swap dated June 6, 2008 in the principal amount of $860,000

D) ISDA Interest Rate Swap dated July 1, 2008 in the principal amount of $1,970,472.51

2) Flagstar Promissory Note dated December 23, 2011 in the principal amount of $1,290,575.72

3) Flagstar Promissory Note dated December 18, 2012 in the principal amount of $1,193,351.27

 

15

Exhibit 2.2

ASSET PURCHASE AGREEMENT

THIS ASSET PURCHASE AGREEMENT made as of the 27th day of March, 2013, (“Execution Date”) by and between LONE STAR METAL FABRICATION, LLC, a Texas limited liability company with a registered address of 10130 FM 2920 RD Unit 300, Tomball, TX, 77375-8951 (hereinafter referred to as “Seller”) and PROMETAL RCT, LLC, a Delaware limited liability company with a registered address of c/o Wilmington Trust SP Services (Delaware), Inc., 1105 N. Market Street, Suite 1300, Wilmington, DE 19801 (hereinafter referred to as “Buyer”).

WHEREAS, Seller owns certain real property and personal property located at 7409 Railhead Lane, Houston, TX 77086, all as more specifically described on Exhibit A attached hereto and incorporated by reference herein (the “Assets”), which Seller uses in its business operations (the “Business”); and

WHEREAS, Buyer currently leases the Assets from Seller under various lease agreements; and

WHEREAS, Seller desires to sell to Buyer and Buyer desires to purchase from Seller all of Seller’s right, title and interest in the Assets, all in accordance with the further terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, the parties hereto, intending to be legally bound hereby, agree as follows:

1. SALE OF ASSETS. Except as is otherwise provided in this Agreement, Seller shall sell to Buyer and Buyer shall purchase, free and clear of all liens, mortgages, security interests, encumbrances and liabilities, the Assets from Seller. Seller shall retain all of its cash, cash equivalents and accounts receivable.

2. PURCHASE PRICE. In consideration of the sale of the Assets set forth in Section 1 hereof and the other terms and conditions of this Agreement, Buyer shall pay to Seller a purchase price of Nine Hundred Forty One Thousand Nine Hundred Eighty and 00/100 Dollars ($941,980.00) (hereinafter the “Purchase Price”). The Purchase Price shall be allocated among the Assets, such allocation being set forth on Exhibit B attached hereto. Seller shall be responsible for the cost of deed preparation and all matters of title clearance pertaining to the real property to be conveyed to Buyer. All costs of any title examination and report (interim title binder), title premiums and insurance pertaining to the real property to be conveyed to Buyer shall be paid by Seller. The balance of the closing costs pertaining to the real property to be conveyed to Buyer shall be allocated between Seller and Buyer according to custom in Harris County, Texas. In addition, the real estate taxes shall be apportioned between the parties as of the Closing Date (as defined in Section 5) on their respective tax year assessment bases, i.e., fiscal or calendar. The payment of any of the Financial Obligations as defined in Section 7(i) shall be credited against the Purchase Price to be paid to Seller.


3. NO ASSUMPTION OF LIABILITIES. Buyer shall not assume any of the liabilities pertaining to the Assets or any liabilities of the Business or Seller.

4. PAYMENT OF PURCHASE PRICE. At the Closing (as defined in Section 5), Buyer shall either wire transfer to a bank account designated by Seller or issue a check to Seller for the Purchase Price less any amounts paid by Buyer to satisfy the Financial Obligations (as defined in Section 7(i)) of Seller.

5. CLOSING. The sale and transfer of the Assets (the “Closing”) shall take place at the offices of Buyer on or before March 27, 2013 (“Closing Date”), time being of the essence, or at such other place and at such time as the parties may mutually agree provided all other conditions in Sections 9 and 10 have been fulfilled or waived.

6. DOCUMENTS AND FURTHER REQUIREMENTS OF SELLER. Seller shall deliver at the Closing the following:

(a) A Bill of Sale covering those Assets that are not real property, substantially in the form of Exhibit C;

(b) A Special Warranty Deed to the real property located at 7901 Railhead Lane, Houston, Texas 77086 in recordable form, subject to such terms and conditions as are set forth in this Agreement;

(c) A Good Standing Certificate issued by the Texas Secretary of State dated within thirty (30) days of the Closing Date; and

(d) Such other good and sufficient instruments of conveyance and transfer in a form satisfactory to Buyer’s counsel as shall be effective to vest in Buyer good and marketable title to the Assets.

7. SELLER’S REPRESENTATIONS AND WARRANTIES. Seller hereby makes the following representations and warranties to Buyer as of the Execution Date, and acknowledges Buyer’s reliance thereon, and between the Execution Date and the Closing Date, Seller shall take no actions that would render the representations and warranties made by Seller to Buyer untrue as of the Closing Date:

(a) Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Texas. Seller has full power and authority to enter into this Agreement and consummate the transactions on its part

 

2


contemplated hereby. The execution and delivery of this Agreement, and the sale, transfer and other actions contemplated hereby have been duly authorized by the managing member of Seller, which is the only approval required of Seller. Neither the execution and delivery of this Agreement nor the consummation of the transactions herein by Seller constitute a violation or breach of applicable law or of Seller’s Certificate of Formation or Operating Agreement.

(b) There are no claims, actions, suits or proceedings pending or threatened against or affecting Seller, the Business and/or the Assets, or any portion thereof, nor are there any actions or proceedings by any federal, state, county or municipal department, commission, board, bureau, agency or other governmental instrumentality. Seller is not in default with respect to any order, writ, injunction or decree of any court or governmental department, commission, board, bureau, agency or instrumentality, which involves the possibility of any judgment or liability which may result in any material adverse change in the financial condition of Seller, the Business and/or the Assets.

(c) There are no attachments, executions, assignments for the benefit of creditors, or voluntary or involuntary proceedings in bankruptcy or under any other debtor relief laws contemplated by or pending or threatened against Seller.

(d) Seller has and will carry on the Business in substantially the same manner as it has previously been carried on. Seller shall not enter into any contract, commitment or transaction other than in the ordinary course of business. Seller shall not do any act or omit to do any act, or permit any act or omission to act, that will cause a material breach of any material contract, commitment or obligation by which it is bound.

(e) Seller neither owns, has in existence, has any rights or interest in or to, nor uses in the Business or in conjunction with the Assets:

(i) any trademark or any copyright, invention, letters patent or application for letters patent that have not been licensed to Buyer; or

(ii) any contract or commitment for the future purchase of, or payment for, machinery and equipment.

(f) This Agreement constitutes a legally binding obligation of Seller enforceable in accordance with its terms and conditions. The execution and delivery of this Agreement and the performance by Seller will not conflict with, result in a breach of, or cause a default under any agreement, order of court or other restriction to which Seller is subject or by which Seller is bound.

 

3


(g) Seller has not contracted and shall not contract to sell or transfer to any third party all or any part of the Assets.

(h) Seller has filed or caused to be filed all federal, state and local tax returns, and reports of Seller that are due and required to be filed and has paid or caused to be paid all taxes due and any assessment of taxes received, except taxes or assessments that are being contested in good faith and have been adequately reserved against. All taxes, statutory contributions and payroll that may be or become due and payable, of whatever nature, whether due and owing either as a result of operations of Seller through and including the Closing Date or as a result of this transaction, have been or will be paid by Seller.

(i) As of the Closing Date, Seller will have good and marketable title to each Asset, free and clear of all liens, mortgages, security interests, encumbrances and liabilities, and all Assets are in good repair and condition and are suitable and sufficient for the conduct of the Business, and shall remain so through the Closing Date, normal wear and tear excepted. There are no mortgages, security interests, loans, interest rate swaps or other financial obligations of Seller (the “Financial Obligations”) other than those set forth on Exhibit D, and the Financial Obligations shall be terminated at Closing if not already terminated prior thereto.

(j) Seller has not adopted any retirement plan under the Employee Retirement Income Security Act of 1974, as amended, and is not a member of any controlled group under said Act.

(k) Seller has materially complied with all Federal, Texas, Harris County and municipal (and any agency thereof) laws, statutes, ordinances, rules, regulations and/or orders.

(l) In regard to the real property to be conveyed by Seller to Buyer as part of the assets:

(i) As of Closing, there are no adverse or other parties in possession of any part of the real property or any lessees, tenants at sufferance or trespassers thereof or thereon, or which have been disclosed by survey.

(ii) Seller has no knowledge and has not received notice of any pending or threatened condemnation or similar proceeding or assessment affecting the real property (sidewalks, sewers, other similar capital improvements) or any part thereof, nor to the knowledge, information and belief of Seller is there any such proceeding or assessment contemplated by any governmental authority.

 

4


(iii) Seller has received no legal notices to the effect that Seller, or any use of the real property, violated or has violated any applicable laws, codes, ordinances, regulations, statutes, rules and restrictions relating to the real property and/or the use thereof. Seller has not implicated the real property, or any portion of the real property, in any violation of any local, state or federal environmental law, regulation or permit as applicable thereto. There is no claim, governmental proceeding, adverse notice, judgment, cause of action, special assessment, or charge pending, whether asserted or unasserted, against or related in any way to any portion of the real property, or to Seller, with respect to the real property or any portion thereof, as a result of any violation of any local, state or federal environmental law, regulation or permit.

(iv) As of the Closing, without the express written consent of Buyer, no work will have been performed or will be in progress at the real property and no materials will have been delivered to the real property that might provide the basis for a mechanic’s, materialman’s or other lien against the real property or any portion thereof which is not dismissed or bonded off as of the relevant date; and Seller will operate and maintain the real property, or cause the same to be operated and maintained, in a normal manner from the Execution Date through the Closing.

(v) Seller has received no legal process to the effect that any default or breach exists, or as of the closing will exist, under any of the covenants, conditions, restrictions, zoning, rights-of-way or easements affecting the real property or any portion thereof.

(vi) As of the Closing, there will not be any action, suit or proceeding pending against Seller or the real property or any portion thereof, or relating to or arising out of the ownership of the real property, by any federal, state, county or municipal department, commission, board, bureau or agency or other governmental instrumentality. Any such judicial proceedings of record will be finally dismissed and terminated prior to the Closing.

(vii) There are no attachments, executions, assignments for the benefit of creditors, or voluntary or involuntary proceedings in bankruptcy or under any other debtor relief laws contemplated by Seller, or pending against Seller or the real property.

(viii) After the date of this Agreement, Seller shall not create or voluntarily permit to be created any liens, easements or other conditions affecting any portion of the real property without the prior written consent of Buyer (such consent not to be unreasonably withheld) or as permitted herein.

(ix) The real property has a zoning classification that will permit the current activities of Buyer under its lease with Seller on the real property; and there exists no notice to Seller of any uncorrected violations of building, safety or fire ordinances.

(x) There shall be no leases or any other agreements giving any person or persons the right to use or occupy any portion or all of the real property and no person shall be in possession of the real property except Buyer.

 

5


(xi) Except as specifically set forth in this Agreement, Seller makes no representations or warranties as to the condition or suitability of the real property for any particular use or purpose and Buyer is purchasing and taking title to the real property “AS IS”, “WHERE IS” and “WITH ALL FAULTS”.

(m) The representations and warranties of Seller shall survive the Closing.

8. BUYER’S REPRESENTATIONS AND WARRANTIES. Buyer represents and warrants that this Agreement constitutes a legally binding obligation of Buyer enforceable in accordance with its terms and conditions and has been approved by the managing member of Buyer in accordance with Buyer’s certificate of formation and operating agreement. The execution, delivery and performance by Buyer of its obligations hereunder will not conflict with, result in a breach of, or cause a default under any agreement, order of court or other restriction to which Buyer is subject.

9. CONDITIONS TO BUYER’S CLOSING. All obligations of Buyer hereunder are subject to fulfillment of the following conditions on or before the Closing Date:

(a) All of Seller’s representations and warranties herein are true, complete and accurate as of the date hereof, and Seller shall take no action that would render such representations and warranties untrue as of the Closing Date.

(b) No law, rule, regulation, order, writ or judgment of any court, arbitrator or other agency of government shall have prevented or prohibited the consummation of the transactions contemplated hereby.

(c) Seller shall have delivered to Buyer’s counsel a certificate from the managing member of Seller certifying to certain resolutions of the managing member of Seller approving this Agreement and the transactions and obligations contemplated hereunder.

(d) Buyer has secured a title insurance policy issued by a title insurance company authorized to insure titles in the State of Texas insuring Buyer’s title to the real property to be conveyed by Seller in the full amount of the purchase price allocated to the real property, building and building improvements.

(e) Seller shall grant and convey to Buyer good, marketable and fee simple title to the real property by Special Warranty Deed, free and clear of all mortgages, liens, encumbrances, security interests and/or claims of any nature whatsoever except to the extent of: (i) building and use restrictions of record; (ii) vehicular or pedestrian easements of record affecting the real property and being contiguous to the front, rear or side lot lines; (iii) water, sewer, gas, electric and telephone lines or easements therefor of

 

6


record or as previously installed; provided, however, that said lines or easements shall not adversely affect the use of the real property for its intended purposes; and (iv) prior grants, reservations or leases of coal, oil, gas or other minerals as shown by instruments of record.

(f) Seller shall cancel and terminate at no cost or expense to Buyer all lease agreements between Buyer and Seller pertaining to the Assets, with Seller being permitted to retain all rent and lease payments under such leases for the month of March, 2013.

10. CONDITIONS TO SELLER’S CLOSING. All obligations of Seller hereunder are subject to fulfillment, prior to or on the Closing Date, of the following conditions:

(a) All representations, warranties, covenants and statements given by Buyer are true, complete and accurate from and after the Execution Date to and including the Closing Date and shall survive the Closing.

(b) No law, rule, regulation, order, writ or judgment of any court, arbitrator, or other agency of government shall have prevented or prohibited the consummation of the transaction contemplated hereby.

11. FAILURE OF THE CONDITIONS. In the event that Seller or Buyer fails to fulfill any of the conditions precedent to the transactions contemplated herein, Buyer, in the case of the failure of Seller to fulfill any condition precedent, or Seller, in the case of the failure of Buyer to fulfill any condition precedent owed to such party, may declare this Agreement null and void or may waive the fulfillment of such condition. If a party declares this Agreement null and void because a condition precedent has not been fulfilled, such party shall be permitted to bring an action against the other party for any damages incurred, but only to the extent such failed condition was a result of a breach of this Agreement by the other party.

12. INDEMNIFICATION . Seller and the managing member of Seller, jointly and severally, shall defend, indemnify and hold Buyer harmless from and against any and all liabilities, demands, damages, losses, judgments, expenses and obligations of, or claims arising out of the conduct of the Business and the ownership of the Assets through the Closing; and all actual or potential claims, demands, liabilities, damages, losses and out of pocket expenses including reasonable attorneys fees whether or not reduced to judgment, order or award, caused by or arising out of the breach of any provision, term, condition, representation or warranty made by Seller in this Agreement or in any exhibit, list, certificate or document delivered by it pursuant hereto. Notwithstanding the foregoing, the managing member of Seller shall be liable under this Indemnification provision only to the extent of any amounts that the managing member

 

7


may receive from Seller in the form of compensation and distributions. Buyer shall defend, indemnify and hold Seller harmless from and against all damages, losses and out of pocket expenses including reasonable attorney’s fees, caused by or arising out of the breach of any provision, term, condition, representation or warranty made by Buyer in this Agreement or in any exhibit, list, certificate or document delivered by it pursuant hereto. Promptly after any service of process by any third person in any litigation in respect of which indemnity may be sought from the other party pursuant to this Section 12, the party so served shall notify the indemnifying party of the commencement of such litigation, and the indemnifying party shall be entitled to assume the defense thereof at its expense with counsel of its own choosing.

13. RISK OF LOSS. Seller assumes the risk of loss, damage or destruction resulting from fire, theft or other casualty to the Assets to be sold hereunder from the date hereof through the Closing. In the event of a material loss, destruction or damage due to fire or other casualty prior to Closing, Buyer shall have the option of rescinding this Agreement or going forward with this Agreement without reduction in the Purchase Price provided that Seller assigns or pays over to Buyer all insurance proceeds attributable to the loss or damage of such items. Said option shall be exercised no later than ten (10) days after written notice from Seller to Buyer in the event of the loss or damage.

14. BROKER’S COMMISSIONS. The parties acknowledge that there are no broker’s commissions for the transactions set forth in this Agreement, and Seller shall indemnify and hold Buyer harmless for any such commissions.

15. AMENDMENT AND MODIFICATION. This Agreement may not be amended, modified or supplemented except by a written instrument executed by each of the parties hereto.

16. PRIOR AGREEMENTS SUPERSEDED. This Agreement, and the accompanying Exhibits, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior agreements and undertakings with respect to the matters covered hereby. There are no representations, promises, warranties, covenants or undertakings with respect to the matters covered hereby other than those expressly set forth herein or in the Exhibits.

17. WAIVER. The failure of any party to seek redress for violation of or to insist upon strict performance of any covenant or condition of this Agreement shall not be considered a waiver, nor shall it deprive that party of the right thereafter to insist upon strict adherence to that or any other term of this Agreement.

18. ASSIGNMENT. This Agreement is not assignable by either Buyer or Seller; provided, however, that Buyer may assign this Agreement to any affiliate of Buyer.

 

8


19. NOTICES . All notices shall be in writing and shall be (i) delivered in person, (ii) sent by registered or certified mail, return receipt requested, postage prepaid, to the address of the parties listed below or to such other address as such party shall have designated by proper notice, or (iii) sent by confirmed facsimile transmission with a duplicate copy sent by registered or certified mail in accordance with the preceding clause.

 

Buyer:

   Seller:

ProMetal RCT, LLC

   Lone Star Metal Fabrication, LLC

127 Industry Boulevard

   960 Penn Avenue

Irwin, PA 15642

   Suite 400
   Pittsburgh, PA 15222

Attention: John Irvin

   Attention: Lisa Fera

With a copy to:

   With a copy to:

JoEllen Lyons Dillon, Chief Legal Officer

   Scott P. Magnuson, Esquire

The ExOne Company

   2651 Monroeville Boulevard

127 Industry Boulevard

   Suite 101

Irwin, PA 15642

   Monroeville, PA 15146

20. MANAGING MEMBER. The managing member of Seller acknowledges that the managing member will benefit from the sale of the Assets by Seller through distributions by Seller and that such benefits provide fair and adequate consideration for the managing member’s execution of this Agreement and being liable under the Indemnification provisions of Section 12 of this Agreement.

21. IRS Form 8594. Seller and Buyer shall each file a Form 8594 with their respective Federal income tax returns for the 2013 tax year. Seller and Buyer shall complete such Form consistently with the allocation of the Purchase Price as set forth on Exhibit B of this Agreement. Seller and Buyer shall each timely file their respective tax returns.

 

9


22. MISCELLANEOUS. This Agreement shall inure to the benefit of and be binding upon the parties hereto, their respective successors and permitted assigns. This Agreement shall be governed and interpreted in accordance with the laws of the Commonwealth of Pennsylvania except for the conveyance of the real property, which shall be governed by Texas law. Each party shall bear such party’s expenses in connection with this Agreement regardless of whether the contemplated transactions are consummated. No remedies or rights herein conferred upon or provided to Seller or Buyer are intended to be exclusive of any remedy or right provided by law, but each shall be cumulative and shall be in addition to every other remedy or right given hereunder or now or hereafter existing at law or in equity, including specific performance, or by statute.

WITNESS the following signatures and seals.

 

WITNESS:     LONE STAR METAL FABRICATION, LLC
/s/ Lisa A. Fera     By:   /s/ S. Kent Rockwell
      Managing Member
ATTEST:     MANAGING MEMBER
    Rockwell Forest Products, Inc.
/s/ Lisa A. Fera     By:   /s/ S. Kent Rockwell
Secretary       President
WITNESS:     PROMETAL RCT, LLC
/s/ Lisa A. Fera     By:   /s/ John Irvin
    Title:   Chief Financial Officer

 

10


ASSET PURCHASE AGREEMENT

LIST OF EXHIBITS

 

Exhibit A    Assets
Exhibit B    Purchase Price Allocation
Exhibit C    Bill of Sale
Exhibit D    Existing Security Interests

 

11


EXHIBIT “A”

ASSETS

Real property located at 7409 Railhead Lane, Houston, TX 77086. Being a tract of land containing 0.8430 acre, located in the Wiley S. Powell Survey, Abstract 622, in Harris County, Texas, said 0.8430 acre tract being out of a call 5.746 acre tract of land recorded in the name of A.E.N. West Rail Industrial L.P. in Harris County Clerk’s File (H.C.C.F.) Number Z313859 and being out of Restricted Reserve “A” out of Novo Industrial Park, a subdivision recorded in Film Code Number 351106 of the Harris County Map Records; said 0.8430 acre tract being more particularly described on Exhibit “A” to a Special Warranty Deed recorded in the Harris County Clerk’s office at File #20090082401 on 2/27/2009.

Building and improvements on the above described real property

Three (3) ton crane

 

12


EXHIBIT “B”

PURCHASE PRICE ALLOCATION

 

Assets

  

Land located at 7409 Railhead Lane, Houston, TX 77086

   $ 65,000.00   

Building located at 7409 Railhead Lane, Houston, TX 77086

     536,601.00   

Building Improvement

     243,964.00   

Building Improvement

     58,189.00   

Three (3) Ton Crane

     38,226.00   
  

 

 

 

TOTAL PURCHASE PRICE

   $ 941,980.00   
  

 

 

 

 

13


EXHIBIT “C”

BILL OF SALE

KNOW ALL MEN BY THESE PRESENTS, that pursuant to that certain Asset Purchase Agreement (the “Agreement”) dated March             , 2013, LONE STAR METAL FABRICATION, LLC (“Seller”), for and in consideration of the Purchase Price paid under the Agreement by PROMETAL RCT, LLC (“Buyer”), at or before the sealing and delivery of these presents, the receipt of which is hereby acknowledged, has granted, bargained, sold, released and confirmed and by these presents does grant, bargain, sell, release and confirm unto Buyer, its successors and assigns, all the Assets (other than the real property) as more specifically described on Exhibit A attached to the Agreement (the “Property”), TO HAVE AND TO HOLD the Property.

AND Seller, for itself, its successors and assigns, hereby covenants that it is the lawful owner of the Property, and that it shall and will and forever defend by these presents the same and every part thereof unto Buyer, its successors and assigns, from and against all persons whomsoever.

WITNESS the due execution and sealing hereof the     day of March, 2013.

 

WITNESS:     LONE STAR METAL FABRICATION, LLC
      By:    
      Managing Member

 

14


EXHIBIT “D”

MORTGAGES, SECURITY INTERESTS, LOANS,

INTEREST RATE SWAPS & OTHER FINANCIAL OBLIGATIONS

Vista Bank Promissory Note dated July 9, 2009 in the principal amount of $850,000.00 secured by a Deed of Trust filed in the Harris County Clerk’s office at File #20090314884.

 

15

Exhibit 3.1

THE EXONE COMPANY

(the “Corporation”)

AMENDED AND RESTATED

BYLAWS

Article I.

Offices and Corporate Seal

The registered office of the Corporation required by the Delaware General Corporation Law shall be 1209 N. Orange Street, Wilmington, Delaware, 19801, and the address of the registered office may be changed from time to time by the Board of Directors. The principal place of business of the Corporation shall be located in the Borough of North Huntingdon, County of Westmoreland, Commonwealth of Pennsylvania, unless otherwise determined by the Board of Directors. The Corporation may have such other offices, either within or without the Commonwealth of Pennsylvania, as the Board of Directors may designate or as the business of the Corporation may require from time to time.

The registered office of the Corporation for qualification as a foreign corporation under the Pennsylvania Business Corporation Law may be, but need not be, the same as its principal place of business in the Commonwealth of Pennsylvania, and the address of the registered office may be changed from time to time by the Board of Directors.

The Board of Directors shall provide a corporate seal which shall be circular in form and shall have inscribed thereon the name of the Corporation and the state of incorporation and the words “Corporate Seal”.

Article II.

Board of Directors

Section 1. General Powers. The business and affairs of the Corporation shall be managed by, or under the direction of, its Board of Directors.

Section 2. Number, Tenure and Qualifications. Subject to the rights of the holders of any class or series of Preferred Stock, if any, the number of directors of the Corporation shall be between one and seven or such other number as is fixed from time to time by the Board of Directors, provided however, that the Board of Directors shall at no time consist of fewer than three directors or more than sixteen. Except as provided in Section 3 of this Article II, each director shall be elected by the vote of the majority of the shares cast with respect to the director at any meeting of stockholders for the election of directors at which a quorum is present, provided that, if at the close of the notice periods set forth in Section 13 of Article III, the Presiding Stockholder Meeting Chair (as described in Section 14 of Article III) determines that the number of persons properly nominated to serve as directors of the Corporation exceeds the number of directors to be elected (a “Contested Election”), the directors shall be elected by a plurality of the votes of the shares represented at the meeting and entitled to vote on the election of directors.

For purposes of this 2 Section, a vote of the majority of the shares cast means that the number of shares voted “for” a director must exceed the number of votes cast which are not “for” that director. If a director is a nominee in a non-Contested Election and is not elected, the director shall offer to tender his or her resignation to the Board of Directors. The Nominating Committee of the Board of Directors, or such other committee designated by the Board of Directors pursuant to Section 5 of this Article II for the purpose of recommending director nominees to the Board of Directors, will make a recommendation to the Board of Directors as to whether to accept or reject the resignation, or whether other action should be taken. The Board of Directors will act on the committee’s recommendation and publicly disclose its decision and rationale within 90 days following the date of the certification of the election results. The director who tenders his or her resignation will not participate in the Board’s decision with respect to that resignation.


Each director shall hold office until his or her successor shall have been elected and qualified, or until his or her earlier death or resignation. Any director may resign at any time by delivering his or her written resignation to the Secretary, such resignation to specify whether it will be effective at a particular time, upon receipt by the Secretary or as determined by the Board of Directors.

Section 3. Vacancies. Subject to the rights of the holders of any class or series of Preferred Stock, if any, to elect additional directors under specified circumstances, any vacancy occurring in the Board of Directors, including a vacancy created by an increase in the number of directors, may be filled by the affirmative vote of a majority of the directors then in office although less than a quorum, for the remainder of the unexpired term and until his or her successor shall have been elected and qualified or until his or her earlier death, resignation or removal, with or without cause; provided that in lieu of filling a vacancy, the Board of Directors may reduce the number of directors pursuant to Section 2 of this Article II.

Section 4. Compensation. Directors who also are employees of the Corporation shall not receive any additional compensation for services provided as a member of the Board of Directors. The non-employee directors shall be entitled to receive, pursuant to resolution of the Board of Directors, fixed fees or other compensation for their services as directors, including committee fees. In addition, reimbursement of travel and other expenses incurred for attendance at each regular or special meeting of the Board of Directors or at any meeting of a committee of the Board of Directors or in connection with their other services to the Corporation may be permitted. Nothing herein contained shall be construed to preclude any director from serving the Corporation in any other capacity and receiving compensation therefor.

Section 5. Committees of Directors. The Board of Directors may, by resolution passed by a majority of the whole Board, designate one or more committees. Each committee shall consist of one or more of the directors of the Corporation, as selected by the Board of Directors, and the Board of Directors shall also designate a chairman of each committee. The members of each committee shall designate a person to act as secretary of the committee to keep the minutes of, and serve the notices for, all meetings of the committee and perform such other duties as the committee may direct. Such person may, but need not be, a member of the committee.

The Board of Directors may designate one or more directors of the Corporation as alternate members of any such committee, who may replace any absent or disqualified member or members at any meeting of such committee. Any such committee may be abolished or re-designated from time to time by the Board of Directors. Each member (and each alternate member) of any such committee (whether designated at an annual meeting of the Board of Directors, or to fill a vacancy, or otherwise) shall serve as a member of such committee until his or her successor shall have been designated or until he or she shall cease to be a director, or until his or her resignation or removal, with or without cause, from such committee. Each committee, except as otherwise provided in this section, shall have and may exercise such powers of the Board of Directors as may be provided by resolution or resolutions of the Board of Directors, however, no committee shall have the power of authority: (1) to approve or adopt, or recommend to the stockholders, any action or matter expressly required by the Delaware General Corporation Law to be submitted to the stockholders for approval; or (2) to adopt, amend or repeal the Bylaws of the Corporation.

Any committee may be granted by the Board of Directors power to authorize the seal of the Corporation to be affixed to any or all papers that may require it. Each committee of the Board of Directors may establish its own rules of procedure. Except as otherwise specified in a resolution designating a committee, one-third of the members of a committee shall be necessary to constitute a quorum of that committee for the transaction of business and the act of a majority of committee members present at a meeting at which a quorum is present shall be the act of the committee.

Section 6. Validity of Contracts. No contract or other transaction entered into by the Corporation shall be affected by the fact that a director or officer of the Corporation is in any way interested in or connected with any party to such contract or transaction, or himself is a party to such contract or transaction, even though in the case of a director the vote of the director having such interest or connection shall have been necessary to obligate the Corporation upon such contract or transaction; provided, however, that in any such case (i) the material facts of such interest are known or disclosed to the directors or stockholders and the contract or transaction is authorized or approved in good faith by the stockholders or by the Board of Directors or a committee thereof through the affirmative vote of a majority of the disinterested directors (even though not a quorum), or (ii) the contract or transaction is fair to the Corporation as of the time it is authorized, approved or ratified by the stockholders, or by the Board of Directors, or by a committee thereof.


Article III.

Stockholders’ Meetings

Section 1. Place of Meetings. The Board of Directors or Chairman of the Board of Directors (the “Chairman of the Board”) may designate any place as the place of meeting for any annual meeting or for any special meeting called by the Board of Directors. If no designation is made, the place of meeting shall be the principal place of business of the Corporation in the Commonwealth of Pennsylvania.

Section 2. Annual Meetings. The annual meeting of the stockholders shall be held on the first Monday in the month of May in each year, at the hour of 10:00 o’clock A.M., or at such other day and hour as may be fixed by or under the authority of the Board of Directors, from time to time, for the purpose of electing directors and for the transaction of such other business as may come before the meeting. If the day fixed for the annual meeting shall be a legal holiday in the state where the meeting is to be held, such meeting shall be held on the next succeeding business day. If the election of directors shall not be held on the day designated herein for the annual meeting of the stockholders, or at any adjournment thereof, the Board of Directors shall cause the election to be held at a special meeting of the stockholders as soon thereafter as is convenient.

Section 3. Special Meetings.

(a) Special meetings of the stockholders may be called for any purpose or purposes, unless otherwise prescribed by statute, by the Chairman of the Board or by the Board of Directors at any time.

(b) Special meetings of the stockholders shall be called by the Board of Directors upon written request (a “Request”) to the Secretary of the Corporation by one or more stockholders of the Corporation holding shares representing in the aggregate not less than twenty percent (20%) of the total number of votes entitled to be cast on the matter or matters to be brought before the proposed special meeting. To be valid, a stockholder Request for a special meeting shall: (i) be directed to the Secretary in writing and shall be signed by each stockholder requesting the special meeting, or a duly authorized agent of such stockholder; and (ii) be accompanied by a written notice setting forth the specific purpose(s) of the special meeting and information required by Section 13 of this Article, including the information as to any nominations proposed to be presented and any other business proposed to be conducted at such special meeting and as to the stockholder(s) requesting the special meeting.

(c) A special meeting requested by stockholders shall be held at such date, time and place as may be designated by the Board of Directors or Chairman of the Board; provided, however, that the date of any such special meeting shall be not more than ninety (90) days after receipt by the Secretary of a Request satisfying the requirements of this Section 3. Notwithstanding the foregoing, a special meeting requested by stockholders shall not be held if:

(i) a valid Request is not delivered in the manner and form prescribed pursuant to this Section 3;

(ii) the stated business to be brought before the special meeting is not a proper subject for stockholder action under applicable law;

(iii) the Chairman of the Board or the Board of Directors has called or calls for an annual or special meeting of stockholders to be held within ninety (90) days of the time the Secretary receives the Request for the special meeting and the Board of Directors determines in good faith that the business of such annual or special meeting includes (among any other matters properly brought before the annual or special meeting) the business specified in the stockholder Request;

(iv) an identical or substantially similar item was presented at any meeting of stockholders held within one hundred and twenty (120) days prior to the stockholder Request for a special meeting; or

(v) documentary evidence of the record and beneficial ownership of such shares of stock as of the record date is not established as required by this Section and Section 13 of this Article.


(d) A stockholder may revoke a Request for a special meeting at any time by written revocation delivered to the Secretary, and if, following such revocation, there are unrevoked Requests from stockholders holding in the aggregate less than the requisite number of shares of stock entitling the stockholders to request a special meeting be called, the Chairman of the Board or the Board of Directors, in their discretion, may cancel the special meeting. If none of the stockholders who submitted the Request for a special meeting appears or sends a qualified representative to present the nominations proposed to be presented or other business proposed to be conducted at the special meeting, the Corporation need not present such nominations or other business for a vote at such meeting.

(e) Business transacted at a special meeting requested by stockholders shall be limited to the matters described in the Corporation’s notice for such meeting and only such business will be considered as shall have been stated in the Corporation’s notice for such meeting; provided, however, that nothing herein shall prohibit the Board of Directors from submitting matters to the stockholders at any special meeting requested by stockholders (in addition to those specified in a stockholder Request). The Board of Directors may elect the distribution method of the Corporation’s notice and proxy materials as electronic or as otherwise permitted.

Section 4. Voting; Quorum . Subject to Section 11 of this Article III, each outstanding share, regardless of class, shall be entitled to one vote on each matter submitted to a vote at a meeting of stockholders, except to the extent that the voting rights of any class or classes are enlarged, limited or denied by the Certificate of Incorporation or in the manner therein provided. A majority of the shares entitled to vote, represented in person or by proxy, shall constitute a quorum at a meeting of stockholders. If a quorum is present, the affirmative vote of a majority of the shares represented at the meeting and entitled to vote on the subject matter shall be the act of the stockholders, except as otherwise required by Delaware law, the Certificate of Incorporation, or these Bylaws. No matter shall be considered at a meeting of stockholders except upon a motion duly made and seconded. If less than a majority of the outstanding shares are represented at a meeting, a majority of the shares so represented may adjourn the meeting from time to time without further notice. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally called.

Section 5. Adjournment of Meetings. If less than a majority of the outstanding shares are represented at a meeting of the stockholders, a majority of the shares so represented may adjourn the meeting from time to time without further notice. The Presiding Stockholder Meeting Chair (as described in Section 14 of this Article III) may adjourn a meeting of the stockholders from time to time without further notice, whether or not a quorum is present at the meeting. No notice of the time and place of adjourned meetings need be given except as required by law. In no event shall a public notice of an adjournment of any meeting of the stockholders commence a new time period for the giving of stockholder notice of nominations or proposals for other business as described in Section 13 of Article III. At such adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally called.

Section 6. Proxies. At all meetings of stockholders, a stockholder may vote by proxy executed in writing or submitted by electronic transmission by the stockholder or by the stockholder’s duly authorized attorney-in-fact. No proxy shall be valid after three years from the date of its execution, unless otherwise expressly provided in the proxy.

Section 7. Notice of Meetings. Written notice stating the place, day and hour of the meeting and, in the case of a special meeting, the purpose or purposes for which the meeting is called, shall be delivered not less than ten days (twenty days if the stockholders are to approve a merger or consolidation or a sale, lease or exchange of all or substantially all the Corporation’s assets) nor more than sixty days before the date of the meeting, by or at the direction of the Board of Directors, Chairman of the Board, or the Secretary, or the officer or persons calling the meeting, to each stockholder of record entitled to vote at such meeting. The notice provisions of Article IX, Section 1 of these Bylaws shall apply to notices given under this Section 7.

Section 8. Postponement of Meetings. Any previously scheduled meeting of the stockholders may be postponed by resolution of the Board of Directors (1) upon public notice given prior to the time previously scheduled for such meeting of the stockholders or (2) announcement at the meeting which is to be postponed. In no event shall public notice of a postponement of any previously scheduled meeting of the stockholders commence a new time period for the giving of stockholder notice of nominations or proposals for other business as described in Section 13 of Article III.


Section 9. Cancellation of Meetings. Any special meeting of the stockholders called by the Chairman of the Board or by the Board of Directors may be canceled by resolution of the Board of Directors upon (1) public notice given prior to the time previously scheduled for such meeting of the stockholders or (2) announcement at the meeting which is to be postponed. Any special meeting of stockholders requested by stockholders may be cancelled as permitted under Section 3 of this Article.

Section 10. Voting Lists. The officer or agent having charge of the stock ledger of the Corporation shall make, at least ten days before each meeting of stockholders, a complete list of the stockholders entitled to vote at such meeting, or any adjournment thereof, arranged in alphabetical order, with the postal address of and the number of shares held by each; which list, for a period of ten days prior to such meeting, shall be kept at the principal place of business of the Corporation. The list shall be subject to inspection by any stockholder for any purpose germane to the meeting, at any time during usual business hours. Such list shall also be produced and kept open at the time and place of the meeting and shall be subject to the inspection of any stockholder during the whole time of the meeting. The original stock ledger shall be prima facie evidence as to who are the stockholders entitled to examine such list or ledger or to vote at any meeting of stockholders.

Section 11. Fixing of Record Date. For the purpose of determining stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, or entitled to receive payment of any dividend, or in order to make a determination of stockholders for any other proper purpose, the Board of Directors of the Corporation may fix in advance a date as the record date for any such determination of stockholders. Such date in any case to be not more than sixty days and, in case of a meeting of stockholders, not less than ten days prior to the date on which the particular action, requiring such determination of stockholders, is to be taken. If no record date is fixed for the determination of stockholders entitled to notice of or to vote at a meeting of stockholders, or stockholders entitled to receive payment of a dividend, the close of business on the date next preceding the date on which notice of the meeting is mailed or the date on which the resolution of the Board of Directors declaring such dividend is adopted, as the case may be, shall be the record date for such determination of stockholders. When a determination of stockholders entitled to vote at any meeting of stockholders has been made as provided in this Section, such determination shall apply to any adjournment thereof; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.

Section 12. Voting of Shares by Certain Holders. Neither treasury shares nor shares of the Corporation held by another corporation, if a majority of the shares entitled to vote in the election of directors of such other corporation is held, directly or indirectly, by the Corporation, shall be entitled to vote or to be counted for quorum purposes. Nothing in this paragraph shall be construed as limiting the right of the Corporation to vote its own stock held by it in a fiduciary capacity.

Shares standing in the name of another corporation, domestic or foreign, may be voted in the name of such corporation by any officer thereof or pursuant to any proxy executed in the name of such corporation by any officer of such corporation unless there has been express written notice filed with the Secretary that such officer has no authority to vote such shares. Shares held by an administrator, executor, guardian, conservator, trustee in bankruptcy, receiver or assignee for creditors may be voted by him or her, either in person or by proxy, without a transfer of such shares into such person’s name. Shares standing in the name of a fiduciary may be voted by such person, either in person or by proxy.

A stockholder whose shares are pledged shall be entitled to vote such shares unless in the transfer by the pledgor on the books of the Corporation the pledgor has expressly empowered the pledgee to vote thereon, in which case only the pledgee, or the pledgee’s proxy, may represent such stock and vote thereon.

Section 13. Advance Notice of Stockholder Nominations and Proposals for other Business.

(a) Notice. Nominations of persons for election to the Board of Directors and the proposal of business to be transacted by the stockholders may be made at an annual meeting or, only if and to the extent such matters are included in the Corporation’s notice for such a meeting, at a special meeting of the stockholders only (i) pursuant to the Corporation’s notice with respect to such meeting, (ii) by or at the direction of the Board of Directors or (iii) by any stockholder of the Corporation who was a stockholder of record on the record date set with respect to such meeting (as provided for in Section 11 of Article III), who is entitled to vote at the meeting and who has complied with the notice procedures set forth in this Section 13. For nominations or proposals for other business to be properly brought before an annual or special meeting by a stockholder pursuant to clause (iii) above, the stockholder must give timely notice thereof in writing to the Secretary of the Corporation and such business must be a proper matter for stockholder action under the Delaware General Corporation Law and a proper matter for consideration at such meeting under the Certificate of Incorporation and these Bylaws, including, without limitation, Section 3 of this Article.


For notice under this Section to be timely, it must be delivered to the Secretary at the principal place of business of the Corporation not earlier than the 120th day prior to the date of such meeting and (A) in the case of an annual meeting of stockholders, at least 45 days before the anniversary date on which the Corporation filed its definitive proxy materials (regardless of whether or not thereafter revised or supplemented) with the Securities and Exchange Commission for the prior year’s annual meeting of stockholders; provided, however, that in the event that the date of the annual meeting is advanced by more than thirty (30) days or delayed (other than as a result of adjournment) by more than thirty (30) days from the anniversary of the previous year’s annual meeting, notice by the stockholder to be timely must be delivered not later than the close of business on the later of (1) the sixtieth (60th) day prior to such annual meeting or (2) the tenth (10th) day following the day on which public announcement of the date of such meeting is first made, and (B) in the case of a special meeting, not later than the close of business on the later of (i) the sixtieth (60th) day prior to the date of such meeting or (ii) the tenth (10th) day following the day on which public announcement of the date of such meeting is first made.

(b) Nominations. If such stockholder notice under this Section 13 relates to a proposal by such stockholder to nominate one or more persons for election or re-election as a director, it shall set forth (in addition to the requirements in paragraph (d) below) all information relating to each such person that is required to be disclosed in solicitations of proxies for election of directors, or is otherwise required, in each case pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) (including such person’s written consent to being named in the proxy statement as a nominee and to serving as a director if elected). Persons nominated by stockholders to serve as directors of the Corporation who have not been nominated in accordance with this Section 13 shall not be eligible to serve as directors.

(c) Other Business. If such stockholder notice under this Section 13 relates to any other business that the stockholder proposes to bring before the meeting, it shall set forth (in addition to the requirements in paragraph (d) below) a brief description of such business, the reasons for conducting such business at the meeting and any personal or other direct or indirect material interest in such business of such stockholder and the beneficial owner, if any, on whose behalf the proposal is made.

(d) Other Requirements. Each such notice under this Section 13 shall also set forth as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made:

(i) the name and address of such stockholder, as they appear on the Corporation’s books, and of such beneficial owner;

(ii) documentary evidence of the class and number of shares of capital stock of the Corporation which are owned beneficially and of record by each such stockholder and each such beneficial owner;

(iii) a representation by the stockholder and beneficial owner that within five (5) business days after the record date for such meeting it will provide ownership information as of the record date for such meeting;

(iv) a description of any agreement, arrangement or understanding (whether or not in writing) related to the below between or among such stockholder or beneficial owner and any other person at the time of notice under this Section 13 and a representation that the stockholder will notify the Corporation of the same in writing within five (5) business days after the record date for such meeting:

(A) with respect to the nomination or other business, including without limitation any agreements that would be required to be described or reported pursuant to Item 5 of Item 6 of Schedule 13D (regardless of whether the requirements to file a Schedule 13D is applicable to the stockholder or beneficial owner);

(B) any derivative or short positions, profit interests, options, hedging transactions, and borrowed or loaned shares (regardless of whether settled in shares or cash) or other similar arrangement that has been entered into, the effect of which is to mitigate loss, manage risk or benefit from changes in the share price of any class of the Corporation’s stock, or increase or decrease the voting power of the stockholder or beneficial owner with respect to stock of the Corporation; and


(C) related to acquiring, holding, voting or disposing of any shares of stock of the Corporation, including the number of shares that are the subject of such agreement, arrangement or understanding;

(v) a representation as to whether the stockholder or beneficial owner will engage in a solicitation with respect to such nomination or proposal and, if so, the name of each participant (as defined in Item 4 of Schedule 14A under the Exchange Act) in such solicitation and whether such person or group intends to deliver a proxy statement and/or form of proxy to stockholders; and

(vi) as to the stockholder giving the notice and the beneficial owners, if any, on whose behalf the nomination or proposal is made, such stockholder’s and beneficial owners’ written consent to the public disclosure of information provided pursuant to this Section.

(e) The requirements of this Section 13 shall not apply to a stockholder if the stockholder has notified the Corporation of his or her intention to present a stockholder proposal at an annual or special meeting pursuant to and in compliance with Rule 14a-8 under the Exchange Act and wished to have such proposal in the Corporation’s proxy materials. With respect to any such matter proposed to be presented pursuant to and in compliance with Rule 14a-8, (i) the notice required by this Section 13 shall be considered timely if delivered within the time period specified in Rule 14a-8(e), and (ii) the person proposing to have such matter presented at the meeting shall provide the information required by paragraphs (c) and (d) of this Section, provided that the information required by paragraph (d)(i) and (ii) of this Section 13 may be satisfied by providing the information required pursuant to Rule 14a-8(b).

(f) Only such business shall be conducted at an annual or special meeting of stockholders as shall have been brought before the meeting in accordance with this Section 13; provided, however, that nothing herein shall prohibit the Board of Directors from submitting matters to stockholders at any special meeting requested by stockholders. The Presiding Stockholder Meeting Chair (as described in Section 14 of this Article III) of the meeting shall determine whether a nomination or any business proposed to be transacted by the stockholders has been properly brought before the meeting (including without limitation if a stockholder does not meet the provisions of Section 3 of this Article in the case of a stockholder requested special meeting) and, if any proposed nomination or business has not been properly brought before the meeting, the Presiding Stockholder Meeting Chair (as described in Section 14 of this Article III) shall declare that such proposed business or nomination shall not be presented for stockholder action at the meeting, notwithstanding that proxies in respect of such matters may have been received. For purposes of this Section 13, “public announcement” shall mean disclosure in a press release or other means reasonably designed to provide broad distribution of the information to the public, or in a document publicly filed by the Corporation with the Securities Exchange Commission pursuant to Sections 13, 14 or 15(d) of the Exchange Act. Notwithstanding any provision in this Section 13 to the contrary, requests for inclusion of proposals in the Corporation’s proxy statement made pursuant to Rule 14a-8 under the Exchange Act shall be deemed to have been delivered in a timely manner if delivered in accordance with such Rule.

Notwithstanding compliance with the requirements of this Section 13, the Presiding Stockholder Meeting Chair (as described in Section 14 of this Article III) presiding at any meeting of the stockholders may, in his or her sole discretion, refuse to allow a stockholder or stockholder representative to present any proposal which the Corporation would not be required to include in a proxy statement under any rule promulgated by the Securities and Exchange Commission.

Nothing in this Section 13 shall be deemed to affect any rights of the holders of any series of Preferred Stock, if any, to elect directors, established by resolution of the Board of Directors as provided in the Certificate of Incorporation.

Section 14. Procedures. The Chairman of the Board or other person presiding as provided in these Bylaws or by the Board of Directors (the “Presiding Stockholder Meeting Chair”), shall call meetings of the stockholders to order. The Secretary, or in the event of his or her absence or disability, the Assistant Secretary, if any, or if there be no Assistant Secretary, in the absence of the Secretary, an appointee of the Presiding Stockholder Meeting Chair, shall act as Secretary of the meeting.

The order of business and all other matters of procedure at every meeting of stockholders may be determined by such Presiding Stockholder Meeting Chair. Except to the extent inconsistent with applicable law, these Bylaws or any rules and regulations adopted by the Board of Directors, the Presiding Stockholder Meeting Chair of any


meeting of the stockholders shall have the right and authority to prescribe such rules, regulations and procedures and to do all such acts, including causing an adjournment of such meeting, as, in the judgment of such Presiding Stockholder Meeting Chair, are appropriate. Such rules, regulations or procedures, whether adopted by the Board of Directors or prescribed by the Presiding Stockholder Meeting Chair of the meeting, may include, without limitation, the following: (a) the establishment of an agenda or order of business for the meeting; (b) rules and procedures for maintaining order at the meeting and the safety of those present; (c) limitations on attendance at or participation in the meeting to stockholders of record of the Corporation, their duly authorized and constituted proxies or such other persons as the Presiding Stockholder Meeting Chair shall permit; (d) restrictions on entry to the meeting after the time fixed for the commencement thereof; (e) limitations on the time allotted to questions or comments by participants; and (f) establishing times for opening and closing of the voting polls for each item upon which a vote is to be taken. Unless, and to the extent determined by the Board of Directors or the Presiding Stockholder Meeting Chair of the meeting, meetings of the stockholders shall not be required to be held in accordance with rules of parliamentary procedure.

Article IV.

Board of Directors’ Meetings

Section 1. Annual Meetings. An annual meeting of the Board of Directors for the purpose of electing officers and for the transaction of such other business as may come before the meeting shall be held without other notice than this Bylaw immediately after, and at the same place as, the annual meeting of stockholders.

Section 2. Special Meetings. Special meetings of the Board of Directors may be called by or at the request of the Chairman of the Board or any two directors. The person or persons authorized to call special meetings of the Board of Directors may fix any place, either within or without the State of Delaware, as the place for holding any special meeting of the Board of Directors called by them.

Section 3. Meetings in Executive Session. During any annual meeting or special meeting of the Board of Directors, the Board of Directors may have an executive session with only the nonemployee directors or only the independent directors present and such other invitees as the directors participating in the executive session shall so determine. No separate notice of the executive session is required. The presiding director, as determined by the Board of Directors’ established procedures, shall preside at such executive session unless the directors participating in the executive session shall select another director to preside.

Section 4. Notice. Notice of the annual meeting of the Board of Directors need not be given. Except as set forth in the next sentence, special meetings of the Board of Directors may be called: (i) on 24 hours notice if notice is given to each director personally or by telephone, including a voice messaging system, or other system or technology designed to record and communicate messages, telegraph, facsimile, electronic mail or other electronic means, or (ii) on two days notice if notice is sent by overnight courier or (iii) on five days notice if notice is mailed, to each director, addressed to him or her at his or her usual place of business or residence. If, however, the meeting is called by or at the request of the Chairman of the Board and if the Chairman of the Board decides that unusual and urgent business is to be transacted at the meeting (which decision shall be conclusively demonstrated by the Chairman of the Board giving notice of the meeting less than 24 hours prior to the meeting), then at least 2 hours prior notice shall be given. Any director may waive notice of any meeting. The attendance of a director at a meeting shall constitute a waiver of notice of such meeting, except where a director attends a meeting and objects at the meeting to the transaction of any business because the meeting is not lawfully called or convened. Neither the business to be transacted at, nor the purpose of, any special meeting of the Board of Directors need be specified in the notice or waiver of notice of such meeting.

Section 5. Quorum. One-third of the number of directors fixed by, or pursuant to, Section 2 of Article II shall constitute a quorum for the transaction of business at any meeting of the Board of Directors, but if less than such one-third is present at a meeting, a majority of the directors present may adjourn the meeting from time to time without further notice.

Section 6. Manner of Acting. Except as otherwise required by law, the Certificate of Incorporation or these Bylaws, the act of the majority of the directors present at a meeting at which a quorum is present shall be the act of the Board of Directors.


Section 7. Presumption of Assent. A director of the Corporation who is present at a meeting of the Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless his or her dissent is entered in the minutes of the meeting or unless the director files a written dissent to such action with the person acting as the secretary of the meeting before the adjournment thereof or forwards such dissent by registered mail to the Secretary of the Corporation immediately after the adjournment of the meeting. Such right to dissent shall not apply to a director who voted in favor of such action.

Section 8. Action by Directors Without a Meeting. Any action required to be taken at a meeting of the Board of Directors, or at a meeting of a committee of directors, or any other action which may be taken at a meeting, may be taken without a meeting if a consent in writing or by electronic transmission setting forth the action so taken shall be signed by all of the directors or members of the committee thereof entitled to vote with respect to the subject matter thereof and filed with the minutes of proceedings of the Board of Directors or committee and such consent shall have the same force and effect as a unanimous vote.

Section 9. Participation in a Meeting by Telephone. Members of the Board of Directors or any committee of directors may participate in a meeting of such Board or committee by means of conference telephone or similar communications equipment by means of which all persons participating in the meeting can hear each other, and participating in a meeting pursuant to this Section 9 shall constitute presence in person at such meeting.

Section 10. Regulations; Manner of Acting. To the extent consistent with applicable law, the Certificate of Incorporation and these Bylaws, the Board of Directors may adopt such rules and regulations for the conduct of meetings of the Board of Directors and for the management of the property, affairs and business of the Corporation as the Board of Directors may deem appropriate.

Article V.

Officers and Chairman of the Board

Section 1. Elected Officers. The elected officers of the Corporation shall include a Chief Executive Officer and Secretary of the Corporation and such other officers as the Board of Directors may designate by resolution to be elected directly by the Board of Directors or in any other manner as the Board of Directors may determine. The elected officers of the Corporation shall have such powers and duties as generally pertain to their respective offices, subject to these Bylaws. Any two or more offices may be held by the same person. Each elected officer shall hold office until his or her successor shall have been duly elected or until his or her death or until he or she shall resign or shall have been removed. Any elected officer serves at the pleasure of the Board of Directors and may be removed by the Board of Directors at any time for any reason. Except as may be otherwise determined by the Board of Directors, any elected officer of the Corporation other than the Chief Executive Officer, the President (if any), the Chief Financial Officer, the Secretary or the Controller may be removed by the CEO at any time for any reason, provided that the CEO is a member of the Board of Directors.

Section 2. The Chairman of the Board of Directors. The Board of Directors shall annually elect one of its own members to be the Chairman of the Board of Directors. The Chairman of the Board (who may also be the Chief Executive Officer of the Corporation) may also be an elected officer of the Corporation. The Chairman of the Board shall preside at all meetings of the Board of Directors and of the stockholders, except as otherwise provided under these Bylaws, and may at any time call any meeting of the Board of Directors. The Board of Directors may remove or replace the Chairman of the Board as Chairman at any time for any reason.

Section 3. The Chief Executive Officer. The Board of Directors may appoint one or more officers of the Corporation as the Chief Executive Officer (such one or more individuals, the “CEO”). The CEO shall be the senior executive officer of the Corporation and shall in general supervise and control all the business and affairs of the Corporation. The CEO shall direct the policies of the Corporation and shall perform all other duties incident to the office or as may be delegated or assigned by the Board of Directors by resolution from time to time. The CEO may delegate powers to any other officer of the Corporation.

Section 4. The President. The President (who may also be the Chief Operating Officer) shall have such duties as are incident to such office or as may be delegated or assigned by the Board of Directors by resolution from time to time. Prior to any action by the Board of Directors, in the absence or disability of the CEO, the President shall exercise the functions of the CEO and shall have the authority of the CEO. There is no requirement that there be a President.


Section 5. Vice Presidents. Vice Presidents shall have such duties as are incident to such office or as may be delegated or assigned by the Board of Directors by resolution from time to time.

Section 6. The Secretary. The Secretary shall give notice of, and keep the minutes of, all meetings of the Board of Directors and the stockholders. He or she shall in general perform all of the duties which are incident to the office of secretary of a company, subject at all times to the direction and control of the Board of Directors, and shall have such other duties as may be delegated or assigned by the Board of Directors by resolution from time to time. The Secretary may appoint one or more Assistant Secretaries, each of whom shall have the power to affix and attest the corporate seal of the Corporation, and to attest to the execution of documents on behalf of the Corporation and perform such duties as may be assigned by the Secretary.

Section 7. The Chief Financial Officer. The Chief Financial Officer shall be the senior financial officer of the Corporation and shall have such duties as are incident to such office or as may be delegated or assigned from time to time by the CEO or by the Board of Directors.

Section 8. The Treasurer. The Treasurer shall have the custody of all of the funds and securities of the Corporation and shall have such duties as are incident to such office or as may be delegated or assigned from time to time by the CEO or by the Board of Directors. The Treasurer may appoint one or more Assistant Treasurers to perform such duties as may be assigned by the Treasurer.

Section 9. Statutory Duties. Each respective officer shall discharge any and all duties pertaining to their respective office, which is imposed on such officer by the provisions of any present or future statute of the State of Delaware.

Section 10. Delegation of Duties. In case of the absence of any officer of the Corporation, the Chairman of the Board or the Board of Directors may delegate, for the time being, the duties of such officer to any other officer or to any director.

Article VI.

Certificates for Shares and Their Transfer

Section 1. Certificates for Shares. Certificates representing shares of the Corporation shall be in such form as shall be determined by the Board of Directors. Such certificates shall be signed by the CEO or President, and by the Treasurer or the Secretary. Any or all of the signatures on the certificate may be a facsimile. In case any officer, transfer agent, or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, it may be issued by the Corporation with the same effect as if he or she were such officer, transfer agent, or registrar at the date of issue. All certificates for shares shall be consecutively numbered or otherwise identified. The name and address of the person to whom the shares represented thereby are issued, with the number of shares and date of issue, shall be entered on the stock ledger of the Corporation.

Section 2. Transfer of Certificate. Transfer of shares of the Corporation shall be made only upon the records of the Transfer Agent appointed for this purpose, by the owner in person or by the legal representative of such owner and, upon such transfer being made, the old certificates shall be surrendered to the Transfer Agent who shall cancel the same and thereupon issue a new certificate or certificates therefor. Whenever a transfer is made for collateral security, and not absolutely, the fact shall be so expressed in the recording of the transfer.

Section 3. Transfer Agent and Registrar. The Board of Directors may appoint a transfer agent and registrar of transfers and thereafter may require all stock certificates to bear the signature of such transfer agent and such registrar of transfers. The signature of either the transfer agent or the registrar may be a facsimile.

Section 4. Registered Holder. The Corporation shall be entitled to treat the registered holder of any shares as the absolute owner thereof and, accordingly, shall not be bound to recognize any equitable or other claim thereto, or interest therein, on the part of any other person, whether or not it shall have express or other notice thereof, save as expressly provided by the statutes of the State of Delaware.


Section 5. Rules of Transfer. The Board of Directors also shall have the power and authority to make all such rules and regulations as they may deem expedient concerning the issue, transfer and registration of the certificates for the shares of the Corporation.

Section 6. Lost Certificates. Any person claiming a certificate for shares of this Corporation to be lost or destroyed, shall make affidavit of the fact and lodge the same with the Secretary of the Corporation, accompanied by a signed application for a new certificate. Such person shall give to the Corporation, to the extent deemed necessary by the Secretary or Treasurer, a bond of indemnity with one or more sureties satisfactory to the Secretary, and in an amount which, in his or her judgment, shall be sufficient to save the Corporation from loss, and thereupon the proper officer or officers may cause to be issued a new certificate of like tenor with the one alleged to be lost or destroyed. But the Secretary may recommend to the Board of Directors that it refuse the issuance of such new certificate in the event that the applicable provisions of the Uniform Commercial Code are not met.

Article VII.

Contracts, Loans, Checks and Deposits

Section 1. Contracts. The Board of Directors may authorize, by these Bylaws or any resolution, any officer or officers, agent or agents, to enter into any contract or execute and deliver any instrument in the name of and on behalf of the Corporation, and such authority may be general or confined to specific instances.

Section 2. Loans. No loans shall be contracted on behalf of the Corporation and no evidences of indebtedness shall be issued in its name unless authorized by these Bylaws or a resolution of the Board of Directors. Such authority may be general or confined to specific instances.

Section 3. Checks, Drafts, Etc. All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the Corporation, shall be signed by such officer or officers, agent or agents, of the Corporation and in such manner as shall from time to time be determined by these Bylaws or a resolution of the Board of Directors.

Section 4. Deposits. All funds of the Corporation not otherwise employed shall be deposited from time to time to the credit of the Corporation in such banks, trust companies or other depositories as the Board of Directors may select.

Article VIII.

Books and Records

Complete books and records of account together with minutes of the proceedings of the meetings of the stockholders and Board of Directors shall be kept. A record of stockholders, giving the names and addresses of all stockholders, and the number and class of the shares held by each, shall be kept by the Corporation at its registered office or principal place of business in the Commonwealth of Pennsylvania or at the office of a Transfer Agent or Registrar.

Article IX.

Notices

Section 1. Manner of Notice. Whenever, under the provisions of the Certificate of Incorporation or of the Bylaws of the Corporation or of the statutes of the State of Delaware, notice is required to be given to a stockholder, to a director or to an officer, it shall not be construed to mean personal notice, unless expressly stated so to be. Without limiting the manner by which notice otherwise may be given to stockholders, any notice so required (other than notice by publication) may be given in writing by depositing the same in the United States mail, postage prepaid, directed to the stockholder, director or officer, at his, or her, address as the same appears on the records of the Corporation, and the time when the same is mailed shall be deemed the time of the giving of such notice or by electronic transmission consented to (in a manner consistent with the Delaware General Corporation Law) by the stockholder. Any such notice by electronic transmission shall be deemed to be given: (1) if by facsimile, when directed to a number at which the stockholder has consented to receive notice; (2) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to (in a manner consistent with the


Delaware General Corporation Law) receive notice; (3) if by posting on an electronic network together with separate notice to the stockholder of specific posting, upon the later of such posting and the giving of the separate notice, and (4) if by any other form of electronic transmission, when directed by the stockholder.

Section 2. Waiver of Notice. Notice of the time, place, and purpose of any meeting of stockholders may be waived (i) in writing signed by the person entitled to notice thereof or (ii) by electronic transmission made by the person entitled to notice, in each case either before or after such meeting. Neither the business to be transacted at, nor the purpose of, any regular or special meeting of the stockholders need be specified in a written waiver of notice or any waiver by electronic transmission. Notice will be waived by any stockholder by his or her attendance thereat in person or by proxy, except when the stockholder attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Any stockholder so waiving notice of such meeting shall be bound by the proceedings of any such meeting in all respects as if due notice thereof had been given.

Article X.

Fiscal Year

The fiscal year of the Corporation shall begin on the 1st day of January and terminate on the 31st day of December or as otherwise determined by the Board of Directors.

Article XI.

Emergency Bylaws

The Emergency Bylaws provided in this Article XI shall be operative upon (a) the declaration of a civil defense emergency by the President of the United States or by concurrent resolution of the Congress of the United States pursuant to Title 50, Appendix, Section 2291 of the United States Code, or any amendment thereof, or (b) upon a proclamation of a civil defense emergency by the Governor of the Commonwealth of Pennsylvania which relates to an attack or imminent attack on the United States or any of its possessions. Such Emergency Bylaws, or any amendments to these Bylaws adopted during such emergency, shall cease to be effective and shall be suspended upon any proclamation by the President of the United States, or the passage by the Congress of a concurrent resolution, or any declaration by the Governor of Pennsylvania that such civil defense emergency no longer exists.

During any such emergency, any meeting of the Board of Directors may be called by any officer of the Corporation or by any director. Notice shall be given by such person or by any officer of the Corporation. The notice shall specify the place of the meeting, which shall be at the principal place of business of the Corporation at the time if feasible, and otherwise, any other place specified in the notice. The notice shall also specify the time of the meeting. Notice may be given only to such of the directors as it may be feasible to reach at the time and by such means as may be feasible at the time, including publication or radio. If given by mail, messenger, telephone, or telegram, the notice shall be addressed to the director at his or her residence or business address, or such other place as the person giving the notice shall deem most suitable. Notice shall be similarly given, to the extent feasible in the judgment of the person giving the notice, to the other directors. Notice shall be given at least two days before the meeting, if feasible in the judgment of the person giving the notice, and otherwise on any shorter time he or she may deem necessary.

Article XII.

Amendment of Bylaws By Directors

These Bylaws may be altered, amended or repealed and new Bylaws may be adopted at any meeting of the Board of Directors by a majority vote of the directors present at the meeting.


Article XIII.

Indemnification and Insurance

(A) Each person who was or is made a party or is threatened to be made a party to or is otherwise involved in any action, suit, or proceeding, whether civil, criminal, administrative or investigative (hereinafter a “proceeding”), by reason of the fact that he or she or a person of whom he or she is the legal representative is or was, at any time during which this Bylaw is in effect (whether or not such person continues to serve in such capacity at the time any indemnification or payment of expenses pursuant hereto is sought or at the time any proceeding relating thereto exists or is brought), a director or officer of the Corporation or is or was serving at the request of the Corporation as a director, officer, trustee, employee or agent of another corporation or of a partnership, joint venture, trust or other enterprise, including service with respect to employee benefit plans maintained or sponsored by the Corporation, whether the basis of such proceeding is alleged action in an official capacity as a director, officer, trustee, employee or agent or in any other capacity while serving as a director, officer, trustee, employee or agent, shall be indemnified and held harmless by the Corporation to the fullest extent authorized by the General Corporation Law of the State of Delaware as the same exists or may hereafter be amended (but, in the case of any such amendment, only to the extent that such amendment permits the Corporation to provide broader indemnification rights than said law permitted the Corporation to provide prior to such amendment), against all expense, liability and loss (including attorneys’ fees, judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement) reasonably incurred or suffered by such person in connection therewith and such indemnification shall continue as to a person who has ceased to be a director, officer, trustee, employee or agent and shall inure to the benefit of his or her heirs, executors and administrators; provided, however, that except as provided in paragraph (C) of this Bylaw, the Corporation shall indemnify any such person seeking indemnification in connection with a proceeding (or part thereof) initiated by such person only if such proceeding (or part thereof) was authorized by the Board of Directors. The right to indemnification conferred in this Bylaw shall include the right to be paid by the Corporation the expenses incurred in defending any such proceeding in advance of its final disposition, such advances to be paid by the Corporation within 20 days after the receipt by the Corporation of a statement or statements from the claimant requesting such advance or advances from time to time; provided, however, that if the General Corporation Law of the State of Delaware requires, the payment of such expenses incurred by a director or officer in his or her capacity as a director or officer (and not in any other capacity in which service was or is rendered by such person while a director or officer, including, without limitation, service to an employee benefit plan) in advance of the final disposition of a proceeding, shall be made only upon delivery to the Corporation of an undertaking by or on behalf of such director or officer, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right of appeal that such director or officer is not entitled to be indemnified under this Bylaw or otherwise. The rights conferred in this Bylaw shall be contract rights that vest at the time of such person’s service to or at the request of the Corporation and such rights shall continue as to an indemnitee who has ceased to be a director, officer, trustee, employee or agent and shall inure to the benefit of the indemnitee’s heirs, executors and administrators.

(B) To obtain indemnification under this Bylaw, a claimant shall submit to the Corporation a written request, including therein or therewith such documentation and information as is reasonably available to the claimant and is reasonably necessary to determine whether and to what extent the claimant is entitled to indemnification. Upon written request by a claimant for indemnification pursuant to the first sentence of this paragraph (B), a determination, if required by applicable law, with respect to the claimant’s entitlement thereto shall be made as follows: (1) if requested by the claimant, by Independent Counsel (as hereinafter defined), or (2) if no request is made by the claimant for a determination by Independent Counsel, (i) by the Board of Directors by a majority vote of a quorum consisting of Disinterested Directors (as hereinafter defined), or (ii) if a quorum of the Board of Directors consisting of Disinterested Directors is not obtainable or, even if obtainable, such quorum of Disinterested Directors so directs, by Independent Counsel in a written opinion to the Board of Directors, a copy of which shall be delivered to the claimant, or (iii) if a quorum of Disinterested Directors so directs, by the stockholders of the Corporation. In the event the determination of entitlement to indemnification is to be made by Independent Counsel at the request of the claimant, the Independent Counsel shall be selected by the Board of Directors unless there shall have occurred within two years prior to the date of the commencement of the action, suit or proceeding for which indemnification is claimed a “Change of Control”, in which case the Independent Counsel shall be selected by the claimant unless the claimant shall request that such selection be made by the Board of Directors. If it is so determined that the claimant is entitled to indemnification, payment to the claimant shall be made within 10 days after such determination.


(C) If a claim under paragraph (A) of this Bylaw is not paid in full by the Corporation within 30 days after a written claim pursuant to paragraph (B) of this Bylaw has been received by the Corporation, the claimant may at any time thereafter bring suit against the Corporation to recover the unpaid amount of the claim and, if successful in whole or in part, the claimant shall be entitled to be paid also the expense of prosecuting such claim. It shall be a defense to any such action (other than an action brought to enforce a claim for expenses incurred in defending any proceeding in advance of its final disposition where the required undertaking, if any is required, has been tendered to the Corporation) that the claimant has not met the standard of conduct which makes it permissible under the General Corporation Law of the State of Delaware for the Corporation to indemnify the claimant for the amount claimed, but the burden of proving such defense shall be on the Corporation. Neither the failure of the Corporation (including its Board of Directors, Independent Counsel or stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he or she has met the applicable standard of conduct set forth in the General Corporation Law of the State of Delaware, nor an actual determination by the Corporation (including its Board of Directors, Independent Counsel or stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that the claimant has not met the applicable standard of conduct.

(D) If a determination shall have been made pursuant to paragraph (B) of this Bylaw that the claimant is entitled to indemnification, the Corporation shall be bound by such determination in any judicial proceeding commenced pursuant to paragraph (C) of this Bylaw.

(E) The Corporation shall be precluded from asserting in any judicial proceeding commenced pursuant to paragraph (C) of this Bylaw that the procedures and presumptions of this Bylaw are not valid, binding and enforceable and shall stipulate in such proceeding that the Corporation is bound by all the provisions of this Bylaw.

(F) The right to indemnification and the payment of expenses incurred in defending a proceeding in advance of its final disposition conferred in this Bylaw (i) shall not be exclusive of any other right which any person may have or hereafter acquire under any statute, provision of the Certificate of Incorporation, Bylaws, agreement, vote of stockholders or Disinterested Directors or otherwise and (ii) cannot be terminated by the Corporation, the Board of Directors or the stockholders of the Corporation with respect to a person’s service prior to the date of such termination. Any amendment, modification, alteration or repeal of this Bylaw that in any way diminishes, limits, restricts, adversely affects or eliminates any right of an indemnitee or his or her successors to indemnification, advancement of expenses or otherwise shall be prospective only and shall not in any way diminish, limit, restrict, adversely affect or eliminate any such right with respect to any actual or alleged state of facts, occurrence, action or omission then or previously existing, or any action, suit or proceeding previously or thereafter brought or threatened based in whole or in part upon any such actual or alleged state of facts, occurrence, action or omission.

(G) The Corporation may maintain insurance, at its expense, to protect itself and any director, officer, employee or agent of the Corporation or another corporation, partnership, joint venture, trust or other enterprise against any expense, liability or loss, whether or not the Corporation would have the power to indemnify such person against such expense, liability or loss under the General Corporation Law of the State of Delaware. To the extent that the Corporation maintains any policy or policies providing such insurance, each such director or officer, and each such agent or employee to which rights to indemnification have been granted as provided in paragraph (H) of this Bylaw, shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage thereunder for any such director, officer, employee or agent.

(H) The Corporation may, to the extent authorized from time to time by the Board of Directors, grant rights to indemnification, and rights to be paid by the Corporation the expenses incurred in defending any proceeding in advance of its final disposition, to any employee or agent of the Corporation to the fullest extent of the provisions of this Bylaw with respect to the indemnification and advancement of expenses of directors and officers of the Corporation.

(I) If any provision or provisions of this Bylaw shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (1) the validity, legality and enforceability of the remaining provisions of this Bylaw (including, without limitation, each portion of any paragraph of this Bylaw containing any such provision held to be invalid, illegal or unenforceable, that is not itself held to be invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby; and (2) to the fullest extent possible, the provisions of this Bylaw (including, without limitation, each such portion of any paragraph of this Bylaw containing any such provision held to be invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested by the provision held invalid, illegal or unenforceable.


(J) For purposes of this Bylaw:

(1) “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

(i) individuals who constitute the Board as of the Effective Date (the “ Incumbent Board ”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a Director subsequent to such date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least two-thirds of the Directors then comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination) will be deemed to have then been a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(ii) consummation of a reorganization, merger or consolidation of the Company or a direct or indirect wholly owned subsidiary thereof, a sale or other disposition (whether by sale, taxable or nontaxable exchange, formation of a joint venture or otherwise) of all or substantially all of the assets of the Company, or other transaction involving the Company (each, a “ Business Combination ”), unless, in each case, immediately following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners of Voting Stock of the Company immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding shares of Voting Stock of the entity resulting from such Business Combination or any direct or indirect parent corporation thereof (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (B) no Person other than the Company beneficially owns 25% or more of the combined voting power of the then outstanding shares of Voting Stock of the entity resulting from such Business Combination or any direct or indirect parent corporation thereof (disregarding all “acquisitions” described in subsections (A)—(C) of Section 1 (a) (i)), and (C) at least a majority of the members of the Board of Directors of the entity resulting from such Business Combination or any direct or indirect parent corporation thereof were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or

(iii) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company, except pursuant to a Business Combination that complies with clauses (A), (B) and (C) of Section 1(a)(iii).

(iv) Other Events. Any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended, whether or not the Company is then subject to such reporting requirement.

(2) “Disinterested Director” means a director of the Corporation who is not and was not a party to the matter in respect of which indemnification is sought by the claimant.

(3) “Independent Counsel” means a law firm, a member of a law firm, or an independent practitioner, that is experienced in matters of corporation law and shall include any person who, under the applicable standards of professional conduct then prevailing, would not have a conflict of interest in representing either the Corporation or the claimant in an action to determine the claimant’s rights under this Bylaw.

(K) Any notice, request or other communication required or permitted to be given to the Corporation under this Bylaw shall be in writing and either delivered in person or sent by telecopy, telex, telegram, overnight mail or courier service, or certified or registered mail, postage prepaid, return receipt requested, to the Secretary of the Corporation and shall be effective only upon receipt by the Secretary.

Exhibit 10.1

THE EXONE COMPANY

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made as of             , 20    , (the “ Effective Date ”) by and between The ExOne Company, a Delaware corporation (the “ Company ”), and             (the “ Indemnitee ”).

RECITALS:

A. It is essential that the Company retain and attract as directors and officers the most capable persons available.

B. The Indemnitee is (or is being elected as) a director and/or officer of the Company and in that capacity is (or will be) performing a valuable service for the Company.

C. In recognition of Indemnitee’s need for protection against personal liability in order to enhance Indemnitee’s service and continued service to the Company in an effective manner, the potential difficulty in obtaining satisfactory Directors and Officers Liability Insurance (“ D & O Insurance ”) coverage, the Company desires to provide in this Agreement for the indemnification of and the advancing of expenses to Indemnitee to the fullest extent permitted by law and as set forth in this Agreement, and, to the extent insurance is maintained, for the continued coverage of Indemnitee under the Company’s D & O Insurance policies.

D. The Indemnitee is willing to serve and/or to continue to serve, the Company, only on the condition that the Company furnish the indemnity provided for herein.

NOW, THEREFORE, in consideration of Indemnitee’s service and/or continuing to serve the Company directly, or, at its request, another enterprise and intending to be legally bound hereby, the parties hereto agree as follows:

1. Definitions .

(a) A “ Change in Control ” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

(i) the acquisition after the date hereof by any individual, entity or group (within the meaning of section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “ Person ”) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of more than 25% of the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of its directors (“ Voting Stock ”); provided, however, that for purposes of this Section 1(a)(i), the following acquisitions will not constitute a Change in Control: (A) any issuance of Voting Stock of the Company directly from the Company that is approved by the Incumbent Board (as defined in Section 1(a)(ii), below), (B) any acquisition by the Company of Voting Stock of the Company, (C) any acquisition of Voting Stock of the Company by any employee benefit plan (or related trust) sponsored or maintained by the Company or any Subsidiary, (D) any acquisition of Voting Stock of the


Company by an underwriter holding securities of the Company in connection with a public offering thereof, or (E) any acquisition of Voting Stock of the Company by any Person pursuant to a Business Combination that complies with clauses (A), (B) and (C) of Section 1(a)(iii) below; or

(ii) individuals who constitute the Board as of the Effective Date (the “ Incumbent Board ,” as modified by this Section 1(a)(ii)), cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a Director subsequent to such date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least two-thirds of the Directors then comprising the Incumbent Board (either by a specific vote or by approval of the proxy statement of the Company in which such person is named as a nominee for director, without objection to such nomination) will be deemed to have then been a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of Directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; or

(iii) consummation of a reorganization, merger or consolidation of the Company or a direct or indirect wholly owned subsidiary thereof, a sale or other disposition (whether by sale, taxable or nontaxable exchange, formation of a joint venture or otherwise) of all or substantially all of the assets of the Company, or other transaction involving the Company (each, a “ Business Combination ”), unless, in each case, immediately following such Business Combination, (A) all or substantially all of the individuals and entities who were the beneficial owners of Voting Stock of the Company immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the combined voting power of the then outstanding shares of Voting Stock of the entity resulting from such Business Combination or any direct or indirect parent corporation thereof (including, without limitation, an entity which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly or through one or more subsidiaries), (B) no Person other than the Company beneficially owns 25% or more of the combined voting power of the then outstanding shares of Voting Stock of the entity resulting from such Business Combination or any direct or indirect parent corporation thereof (disregarding all “acquisitions” described in subsections (A)—(C) of Section 1 (a) (i)), and (C) at least a majority of the members of the Board of Directors of the entity resulting from such Business Combination or any direct or indirect parent corporation thereof were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or

(iv) approval by the stockholders of the Company of a complete liquidation or dissolution of the Company, except pursuant to a Business Combination that complies with clauses (A), (B) and (C) of Section 1(a)(iii).

(v) Other Events. Any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item on any similar schedule or form) promulgated under the Securities Exchange Act of 1934, as amended, whether or not the Company is then subject to such reporting requirement.

 

2


(b) “ Corporate Status ” describes the status of a person who is or was a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of the Company.

(c) “ Disinterested Director ” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

(d) “ Expenses ” include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees and costs of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond or other appeal bond or their equivalent, and (ii) for purposes of Section 12(d), Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement or under any directors’ and officers’ liability insurance policies (“ D&O Insurance ”) maintained by the Company. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

(e) “ Independent Counsel ” means a law firm, or a partner or member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent (i) the Company or Indemnitee in any matter material to either such party (other than as Independent Counsel with respect to matters concerning Indemnitee under this Agreement or as Independent Counsel with respect to matters concerning other indemnitees under other indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

(f) “ Interested Shareholder ” means any person (other than the Company or any subsidiary of the Company and other than any profit sharing, employee stock ownership, or other employee benefit plan of the Company or any subsidiary of the Company or any trustee of or fiduciary with respect to any such plan when acting in such capacity) who or which:

(i) is at such time the beneficial owner, directly or indirectly, of more then fifteen percent (15%) of the voting power of the outstanding common stock of the Company;

(ii) was at any time within the two-year period immediately prior to such time the beneficial owner, directly or indirectly, of more than fifteen percent (15%) of the voting power of the then outstanding common stock of the Company; or

 

3


(iii) is at such time an assignee of or has otherwise succeeded to the beneficial ownership of any shares of common stock of the Company which were at any time within the two-year period immediately prior to such time beneficially owned by any Interested Shareholder, if such assignment or succession has occurred in the course of a transaction or series of transactions not involving a public offering within the meaning of the Securities Act of 1933, as amended.

(g) A “ Potential Change of Control ” shall occur if:

(i) the Company enters into an agreement or arrangement the consummation of which would result in the occurrence of a Change of Control;

(ii) any Person (including the Company) publicly announces an intention to take or to consider taking actions which if consummated would constitute a Change in Control; or

(iii) the Board of Directors of the Company adopts a resolution to the effect that, for purposes of this Agreement, a Potential Change of Control has occurred.

(h) “ Proceeding ” means any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, including any appeal therefrom and including without limitation any such Proceeding pending as of the date of this Agreement, in which Indemnitee was, is or will be involved as a party, a potential party, a non-party witness or otherwise by reason of (i) the fact that Indemnitee is or was a director or officer of the Company, (ii) any action taken by Indemnitee or any action or inaction on Indemnitee’s part while acting as a director or officer of the Company, or (iii) the fact that he or she is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust, limited liability company or other enterprise, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification or advancement of expenses can be provided under this Agreement.

(i) “ Unaffiliated Director ” means any member of the Board of Directors of the Company who is unaffiliated with, and not a representative of, an Interested Shareholder and who was a member of the Board of Directors prior to the time that the Interested Shareholder became an Interested Shareholder or became a member subsequently to fill a vacancy created by an increase in the size of the Board of Directors and did receive the favorable vote of two-thirds (2/3) of the Disinterested Directors in connection with being nominated for election by the shareholders to fill such vacancy or in being elected by the Board of Directors to fill such vacancy, and any successor of a Disinterested Director who is unaffiliated with, and not a representative of, the Interested Shareholder and is recommended or elected to succeed a Disinterested Director by a majority of the Disinterested Directors then on the Board of Directors.

 

4


Reference to “ other enterprises ” shall include employee benefit plans and administrative committees thereof; references to “ fines ” shall include any excise taxes assessed on a person with respect to any employee benefit plan; references to “ serving at the request of the Company ” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; a person who acted in good faith and in a manner he or she reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “ not opposed to the best interests of the Company ” as referred to in this Agreement; references to “ to the fullest extent permitted by applicable law ” shall include, but not be limited to: (i) the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL and (ii) the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

2. Indemnity in Third-Party Proceedings . The Company shall indemnify Indemnitee in accordance with the provisions of this Section 2 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 2, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company and, with respect to any criminal action or proceeding, had no reasonable cause to believe that his or her conduct was unlawful.

3. Indemnity in Proceedings by or in the Right of the Company . The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this Section 3 in respect of any claim, issue or matter as to which Indemnitee shall have been adjudged by a court of competent jurisdiction to be liable to the Company, unless and only to the extent that the Delaware Court of Chancery or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification for such expenses as the Delaware Court of Chancery or such other court shall deem proper.

4. Indemnification for Expenses of a Party Who is Wholly or Partly Successful . To the extent that Indemnitee is a party to or a participant in and is successful (on the merits or otherwise) in defense of any Proceeding or any claim, issue or matter therein, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith. To the extent permitted by applicable law, if

 

5


Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, in defense of one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection with each successfully resolved claim, issue or matter. For purposes of this Section, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

5. Indemnification for Expenses of a Witness . Notwithstanding any other provision of this Agreement, to the extent that Indemnitee, by reason of his or her Corporate Status, is to be a witness or to be interviewed in any threatened, pending or completed action, suit, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee’s behalf in connection therewith.

6. Additional Indemnification . In the event that applicable law permits indemnification in addition to the indemnification provided in Sections 2, 3 and 4, the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his or her behalf in connection with the Proceeding or any claim, issue or matter therein. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Company’s certificate of incorporation and bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change, subject to the restrictions expressly set forth herein or therein. If the Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion of such Expenses to which the Indemnitee is entitled.

7. Contribution . To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee, then in respect of any actual or threatened proceeding in which the Company is jointly liable with Indemnitee (or would be if joined in such proceeding) the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for Expenses, judgments, fines or amounts paid or to be paid in settlement, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and transaction(s) giving rise to such Proceeding; and (ii) the relative fault of Indemnitee and the Company (and its other directors, officers, employees and agents) in connection with such event(s) and transaction(s).

 

6


8. Notification and Defense of Claim .

(a) Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. The written notification to the Company shall include a description of the nature of the Proceeding and the facts underlying the Proceeding. The failure by Indemnitee to notify the Company will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights. With respect to any Proceeding as to which the Indemnitee has so notified the Company:

(i) The Company will be entitled to participate therein at its own expense; and

(ii) Except as otherwise provided below, the Company may assume the defense thereof, with counsel reasonably satisfactory to the Indemnitee. After the Company notifies the Indemnitee of its election to so assume the defense, the Company will not be liable to the Indemnitee under this Agreement for any legal Expenses subsequently incurred by the Indemnitee in connection with the defense, other than legal Expenses relating to the reasonable costs of investigation, including an investigation in connection with determining whether there exists a conflict of interest of the type described in clause (ii) of this paragraph, or as otherwise provided in this paragraph. The Indemnitee shall have the right to employ his or her counsel in such action, suit or proceeding but the fees and expenses of such counsel incurred after the Company notifies the Indemnitee of its assumption of the defense shall be at the expense of the Indemnitee unless (i) the Company authorizes the Indemnitee’s employment of counsel, provided, that following a Change of Control, the Indemnitee shall be entitled to employ his or her own counsel at the Company’s expense after giving not less than 30 days’ notice to the Company unless the Company has Disinterested Directors and a majority of the Disinterested Directors determine that the Indemnitee’s interests are adequately represented by the counsel employed by the Company; (ii) the Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and the Indemnitee in the conduct of the defense or (iii) the Company shall not have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of counsel shall be at the expense of the Company. The Company shall not be entitled to assume the defense of any action, suit or proceeding brought by or on behalf of the Company or as to which the Indemnitee shall have made the conclusion described in clause (ii) of this paragraph.

(b) The Company shall not be obligated to indemnify the Indemnitee under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent. The Company shall not settle any action or claim in any manner which would impose any penalty or limitation on the Indemnitee without the Indemnitee’s written consent. Neither the Company nor the Indemnitee shall unreasonably withhold their consent to any proposed settlement.

 

7


9. Procedure for Indemnification .

(a) To obtain indemnification, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and as is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding. The Company shall, as soon as reasonably practicable after receipt of such a request for indemnification, advise the board of directors that Indemnitee has requested indemnification.

(b) Upon written request by Indemnitee for indemnification pursuant to Section 9(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Company’s board of directors, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Company’s board of directors, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Company’s board of directors, by the stockholders of the Company. If it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or expenses (including attorneys’ fees and disbursements) reasonably incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company, to the extent permitted by applicable law.

(c) In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 9(b), the Independent Counsel shall be selected as provided in this Section 9(c). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Company’s board of directors, and the Company shall give written notice to Indemnitee advising him or her of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Company’s board of directors, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided , however , that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 1 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as

 

8


Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit. If, within twenty (20) days after the later of (i) submission by Indemnitee of a written request for indemnification pursuant to Section 9(a) hereof and (ii) the final disposition of the Proceeding, the parties have not agreed upon an Independent Counsel, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and for the appointment as Independent Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 9(b) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a) of this Agreement, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing),

(d) The Company agrees to pay the reasonable fees and expenses of any Independent Counsel and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

10. Advancement of Expenses; Procedure for Advances . The Company shall advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding. Advances shall be unsecured and interest free and made without regard to Indemnitee’s ability to repay such advances. Indemnitee hereby undertakes to repay any advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company. To obtain advances of Expenses, Indemnitee shall submit from time to time to the Company a written request requesting such advances and shall provide copies of invoices received by Indemnitee in connection with such Expenses but, in the case of invoices in connection with legal services, any references to legal work performed or to expenditure made that Indemnitee’s lawyers believe would likely cause Indemnitee to waive any privilege accorded by applicable law may be redacted from the copy of the invoice submitted to the Company (in which case, Indemnitee shall also submit a letter addressed to the Company from such lawyers to the effect that they believe submission of the redacted information would likely cause Indemnitee to waive a privilege accorded by applicable law). Upon receipt of a such a request for an advance of Expenses along with copies of the related invoices (and, if applicable, a letter from Indemnitee’s lawyers with respect to redactions on the legal invoice(s)), Company shall advance the Expenses to Indemnitee as soon as reasonably practicable, but in any event no later than sixty (60) days, after such receipt by the Company. This Section 10 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 16 of this Agreement.

11. Maintenance of Insurance; Funding .

(a) The Company represents that a summary of the terms of the D&O Insurance in effect as of the date of this Agreement is attached hereto as Exhibit A (the “ Insurance Policies ”). Subject only to the provisions of Section 11(b) hereof, the Company agrees that, so long as Indemnitee shall continue to serve as an officer or director of the Company (or shall continue at the request of the Company to serve as a director, officer, employee, trustee or

 

9


representative of another corporation, partnership, joint venture, trust or other enterprise, including service with respect to an employee benefit plan) and thereafter so long as Indemnitee shall be subject to any possible claim or threatened, pending or completed action, suit or proceeding, whether civil, criminal or investigative, by reason of the fact that Indemnitee was a director or officer of the Company (or served in any of said other capacities), the Company shall purchase and maintain in effect for the benefit of Indemnitee one or more valid, binding and enforceable policy or policies of D & O Insurance providing coverage at least comparable to that provided pursuant to the Insurance Policies.

(b) The Company shall not be required to maintain said policy or policies of D & O Insurance in effect if, in the reasonable, good faith business judgment of the then Board of Directors of the Company (i) the premium cost for such insurance is substantially disproportionate to the amount of coverage, (ii) the coverage provided by such insurance is so limited by exclusions that there is insufficient benefit from such insurance or (iii) said insurance is not otherwise reasonably available; provided, however, that in the event the then Board of Directors makes such a judgment, the Company shall purchase and maintain in force a policy or policies of D & O Insurance in the amount and with such coverage as the then Board of Directors determines to be reasonably available. Notwithstanding the general provisions of this Section 11(b), following a Change of Control, any decision not to maintain any policy or policies of D & O Insurance or to reduce the amount or coverage under any such policy or policies shall be effective only if there are Disinterested Directors (as defined in Section 1(e) hereof) and shall require the concurrence of a majority of the Disinterested Directors.

(c) If and to the extent the Company, acting under Section 11(b), does not purchase and maintain in effect the policy or policies of D & O Insurance described in Section 11(a), the Company shall indemnify and hold harmless the Indemnitee to the full extent of the coverage which would otherwise have been provided by such policies. The rights of the Indemnitee hereunder shall be in addition to all other rights of Indemnitee under the remaining provisions of this Agreement.

(d) In the event of a Potential Change of Control and if and to the extent the Company is not required to maintain in effect the policy or policies of D & O Insurance described in Section 11(a) pursuant to the provisions of Section 11(b), the Company shall, upon written request of Indemnitee, create a “Trust” for the benefit of Indemnitee, and from time to time, upon written request by Indemnitee, shall fund such Trust in an amount sufficient to pay any and all Expenses and any and all liability and loss, including judgments, fines, ERISA excise taxes or penalties and amounts paid or to be paid in settlement actually and reasonably incurred by him or on his behalf for which the Indemnitee is entitled to indemnification or with respect to which indemnification is claimed, reasonably anticipated or proposed to be paid in accordance with the terms of this Agreement or otherwise; provided that in no event shall more than $100,000 be required to be deposited in any Trust created hereunder in excess of the amounts deposited in respect of reasonably anticipated Expenses. The amounts to be deposited in the Trust pursuant to the foregoing funding obligation shall be determined by a majority of the Unaffiliated Directors whose determination shall be final and conclusive. At all times the Trust shall remain as an asset of the Company and subject to the claims of the Company’s creditors.

 

10


The terms of the Trust shall provide that upon a Change of Control (i) the Trust shall not be revoked or the principal thereof invaded, without the written consent of the Indemnitee except as set forth in the preceding paragraph, (ii) the procedures set forth in Section 10 regarding advancement of expenses with respect to the Company shall apply to the Trust, (iii) the Trust shall continue to be funded by the Company in accordance with the funding obligation set forth above (and in the event that there are no Unaffiliated Directors, the decision regarding the amount to fund shall be made by Independent Counsel selected as provided in Section 9(c)), (iv) the Trustee shall promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled to indemnification pursuant to this Agreement or otherwise, and (v) all unexpended funds in such Trust shall revert to the Company upon a final determination by a majority of the Unaffiliated Directors or by Independent Counsel or a court of competent jurisdiction, as the case may be, that the Indemnitee has been fully indemnified under the terms of this Agreement. The Trustee shall be a bank or trust company or other individual or entity chosen by the Indemnitee and reasonably acceptable and approved of by the Company.

12. Remedies of Indemnitee .

(a) Subject to Section 12(d), in the event that (i) a determination is made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 10 or 12(d) of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 9 of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification pursuant to this Agreement is not made (A) within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification or (B) with respect to indemnification pursuant to Sections 4, 5 or 12(d) of this Agreement, within thirty (30) days after receipt by the Company of a written request therefor, or (v) the Company or any other person or entity takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or proceeding designed to deny, or to recover from, Indemnitee the benefits provided or intended to be provided to Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by the Delaware Court of Chancery of Indemnitee’s right to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his or her option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration in accordance with this Agreement.

(b) The failure of the Company, its board of directors, any committee or subgroup of the board of directors, Independent Counsel or stockholders to have made a determination that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct shall not be a defense to the action or create a presumption that Indemnitee has or has not met the applicable standard of conduct. In the event that a determination shall have been made pursuant to Section 9 of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 12, the Company shall, to the fullest extent not prohibited by law, have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

 

11


(c) To the fullest extent not prohibited by law, the Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. If a determination shall have been made pursuant to Section 9 of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statements not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

(d) The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (as soon as reasonably practicable, but in any event no later than sixty (60) days, after receipt by the Company of a written request therefor) advance such Expenses to Indemnitee, that are incurred by Indemnitee in connection with any action for indemnification or advancement of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, to the extent Indemnitee is successful in such action and to the extent not prohibited by law.

(e) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement to indemnification shall be required to be made prior to the final disposition of the Proceeding.

13. Presumptions and Effect of Certain Proceedings .

(a) In making a determination with respect to entitlement to indemnification hereunder, the person, persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9 of this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by such person, persons or entity of any determination contrary to that presumption.

(b) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he or she reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

 

12


(c) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith to the extent Indemnitee relied in good faith on (i) the records or books of account of the Company, including financial statements, (ii) information supplied to Indemnitee by the officers of the Company in the course of their duties, (iii) the advice of legal counsel for the Company or its board of directors or counsel selected by any committee of the board of directors or (iv) information or records given or reports made to the Company by an independent certified public accountant, an appraiser, investment banker or other expert selected with reasonable care by the Company or its board of directors or any committee of the board of directors. The provisions of this Section 13(c) shall not be deemed to be exclusive or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

(d) Neither the knowledge, actions nor failure to act of any other director, officer, agent or employee of the Company shall be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

14. Subrogation; No Duplication of Payments . In the event that the Company pays any Expenses under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of the Indemnitee, who shall execute all papers required and shall do everything that may be necessary to secure such rights, including the execution of such documents necessary to enable the Company effectively to bring suit to enforce such rights. The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder (or for which advancement is provided hereunder) if and to the extent that Indemnitee has otherwise actually received payment from a third party for such amounts under any insurance policy, contract, agreement or otherwise; provided, however, that if the Indemnitee repays any of these payments to such third party (whether due to a reservation of rights or otherwise), the Company shall again be obligated to Indemnitee under this Agreement with respect to such payments.

15. Services to Company . Indemnitee agrees to serve as a director or officer of the Company for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his or her resignation. This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries) and Indemnitee. Indemnitee specifically acknowledges that any employment with the Company (or any of its subsidiaries) is at will, and Indemnitee may be discharged at any time for any reason, with or without cause, with or without notice, except as may be otherwise expressly provided in any executed, written employment contract between Indemnitee and the Company (or any of its subsidiaries), any existing formal severance policies adopted by the Company’s board of directors or, with respect to service as a director or officer of the Company, the Company’s certificate of incorporation or bylaws or the DGCL.

16. Exclusions . Notwithstanding the foregoing, the Company shall not be liable under this Agreement to pay any Expenses in connection with any Proceeding:

(a) for any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by Indemnitee from the sale of securities of the Company, as required in each case under the Securities Exchange Act of

 

13


1934, as amended (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (the “ Sarbanes-Oxley Act ”), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act), if Indemnitee is held liable therefor (including pursuant to any settlement arrangements);

(b) for a disgorgement of profits made from the purchase and sale by the Indemnitee of securities pursuant to Section 16(b) of the Securities Exchange Act of 1934 and amendments thereto or similar provisions of any state statutory law or common law;

(c) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees, agents or other indemnitees, unless (i) the Company’s board of directors authorized the Proceeding (or the relevant part of the Proceeding) prior to its initiation, (ii) otherwise authorized in Section 12(d) or (iii) otherwise required by applicable law; or

(d) if prohibited by applicable law.

17. Amendments . The entitlement to payment hereunder of an Indemnitee shall not be affected or diminished by any amendment, termination or repeal of the General Corporation Law of the State of Delaware or the Bylaws of the Company with respect to any Proceeding arising out of or relating to any actions, transactions or facts occurring prior to the final adoption of any such amendment, termination or repeal. This Agreement may not be modified or altered except by a formal writing signed by both parties that specifically refers to this Agreement.

18. Counterparts . This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one instrument.

19. Indemnification Hereunder Not Exclusive . Nothing herein shall be deemed to diminish or otherwise restrict the Indemnitee’s right to indemnification under any provision of the Restated Certificate of Incorporation or the Bylaws of the Company and amendments thereto or under law. Except as expressly set forth herein, no right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy. It is the intention of the parties in entering into this Agreement that the insurers under any D & O Insurance policy shall be obligated ultimately to pay any claims by Indemnitee which are covered by such policy and not to give such insurers any rights against the Company under or with respect to this Agreement, including, without limitation, any right to be subrogated to any of Indemnitee’s rights hereunder, unless otherwise expressly agreed to by the Company in writing, and the obligation of such insurers to the Company or Indemnitee shall not be deemed reduced or impaired in any respect by virtue of the provisions of this Agreement.

20. Governing Law . This Agreement shall be governed by and construed in accordance with Delaware law.

 

14


21. Saving Clause . Wherever there is conflict between any provision of this Agreement and any applicable present or future statute, law or regulation contrary to which the Company and the Indemnitee have no legal right to contract, the latter shall prevail but (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby but in such event the affected provisions of this Agreement shall be curtailed and restricted only to the extent necessary to bring them within applicable legal requirements.

22. Coverage; Continuation of Indemnity . The provisions of this Agreement shall apply with respect to the Indemnitee’s service as a Director or officer of the Company prior to the date of this Agreement (if any) and with respect to all periods of such service after the date of this Agreement, even though the Indemnitee may have ceased to be a Director or officer of the Company and shall inure to the benefit of the heirs, executors and administrators of Indemnitee. All agreements and obligations of the Company contained in this Agreement shall continue during the period the Indemnitee is a director or officer of the Company (or is or was serving at the request of the Company as a director, trustee, general partner, managing member, officer, employee, agent or fiduciary of another corporation, partnership, joint venture, trust, limited liability company or other enterprise) and shall continue thereafter so long as the Indemnitee shall be subject to any possible claim or threatened, pending or completed action, suit or proceeding, whether civil, criminal or investigative, by reason of the fact that the Indemnitee was a director or officer of the Company or serving in any other capacity referred to herein.

23. Successors . This Agreement shall be binding upon the Company and its successors and assigns, including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company, and shall inure to the benefit of Indemnitee and Indemnitee’s heirs, executors and administrators. The Company shall require and cause any successor (whether direct or indirect by purchase, merger, consolidation or otherwise) to all or substantially all of the business or assets of the Company, by written agreement, expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

24. Miscellaneous .

(a) No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing signed by both of the parties hereto; provided, however, that the Company may amend this Agreement from time to time without Indemnitee’s consent to the extent deemed necessary or appropriate, in its sole discretion, to effect compliance with

 

15


Section 409A of the Code, including regulations and interpretations thereunder, which amendments may result in a reduction of benefits provided hereunder and/or other unfavorable changes to Indemnitee.

(b) This Agreement is intended to provide for the indemnification of, and/or purchase of insurance policies providing for payments of, expenses and damages incurred with respect to bona fide claims against the Indemnitee, as a service provider, or the Company, as the service recipient, in accordance with Treas. Reg. Section 1.409A-1(b)(10), pursuant to which the Agreement shall not provide for the deferral of compensation. The Agreement shall be construed consistently, and limited in accordance with, the provisions of such regulation.

 

16


IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and signed as of the day and year first above written.

 

THE EXONE COMPANY
By:    
Name:  
Title:  
INDEMNITEE
 
Name:  
Title:  

 

17

Exhibit 14.1

THE EXONE COMPANY

Code of Ethics and Business Conduct

1. Introduction .

1.1 The Board of Directors of The ExOne Company, a Delaware corporation (together with its subsidiaries, the “ Company ”), has adopted this Code of Ethics and Business Conduct (the “ Code ”) in order to:

(a) promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest;

(b) promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with, or submits to, the Securities and Exchange Commission (the “ SEC ”) and in other public communications made by the Company;

(c) promote compliance with applicable governmental laws, rules and regulations;

(d) promote the protection of Company assets, including corporate opportunities and confidential information;

(e) promote fair dealing practices;

(f) deter wrongdoing; and

(g) ensure accountability for adherence to the Code.

1.2 All directors, officers and employees are required to be familiar with the Code, comply with its provisions and report any suspected violations as described below in Section 10, Reporting and Enforcement.

2. Honest and Ethical Conduct .

2.1 The Company’s policy is to promote high standards of integrity by conducting its affairs honestly and ethically.

2.2 Each director, officer and employee must act with integrity and observe the highest ethical standards of business conduct in his or her dealings with the Company’s customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job.


3. Conflicts of Interest .

3.1 A conflict of interest occurs when an individual’s private interest (or the interest of a member of his or her family) interferes, or even appears to interfere, with the interests of the Company as a whole. A conflict of interest can arise when an employee, officer or director (or a member of his or her family) takes actions or has interests that may make it difficult to perform his or her work for the Company objectively and effectively. Conflicts of interest also arise when an employee, officer or director (or a member of his or her family) receives improper personal benefits as a result of his or her position in the Company.

3.2 Loans by the Company to, or guarantees by the Company of obligations of, employees or their family members are of special concern and could constitute improper personal benefits to the recipients of such loans or guarantees, depending on the facts and circumstances. Loans by the Company to, or guarantees by the Company of obligations of, any director or officer or their family members are expressly prohibited other than in connection with work related expenses or as permitted by benefit or compensation plans which are available to employees generally.

3.3 Whether or not a conflict of interest exists or will exist can be unclear. Conflicts of interest should be avoided unless specifically authorized as described in Subsection 3.4.

3.4 Persons other than directors and executive officers who have questions about a potential conflict of interest or who become aware of an actual or potential conflict should discuss the matter with, and seek a determination and prior authorization or approval from, the Chief Legal Officer who shall be the Chief Compliance Officer under this Code until another person or officer is so designated.

Directors and executive officers must seek determinations and prior authorizations or approvals of potential conflicts of interest exclusively from the Audit Committee.

4. Compliance .

4.1 Employees, officers and directors should comply, both in letter and spirit, with all applicable laws, rules and regulations in the cities, states and countries in which the Company operates.

4.2 Although not all employees, officers and directors are expected to know the details of all applicable laws, rules and regulations, it is important to know enough to determine when to seek advice from appropriate personnel. Questions about compliance should be addressed to the Chief Legal Officer.

 

2


4.3 No director, officer or employee may purchase or sell any Company securities while in possession of material non-public information regarding the Company, nor may any director, officer or employee purchase or sell another company’s securities while in possession of material non-public information regarding that company. It is against Company policies and illegal for any director, officer or employee to use material non-public information regarding the Company or any other company to:

(a) obtain profit for himself or herself; or

(b) directly or indirectly “tip” others who might make an investment decision on the basis of that information.

5. Disclosure .

5.1 The Company’s periodic reports and other documents filed with the SEC, including all financial statements and other financial information, must comply with applicable federal securities laws and SEC rules.

5.2 Each director, officer and employee who contributes in any way to the preparation or verification of the Company’s financial statements and other financial information must ensure that the Company’s books, records and accounts are accurately maintained. Each director, officer and employee must cooperate fully with the Company’s Accounting Department, as well as the Company’s independent public accountants and counsel.

5.3 Each director, officer and employee who is involved in the Company’s disclosure process must:

(a) be familiar with and comply with the Company’s disclosure controls and procedures and its internal control over financial reporting; and

(b) take all necessary steps to ensure that all filings with the SEC and all other public communications about the financial and business condition of the Company provide full, fair, accurate, timely and understandable disclosure.

6. Protection and Proper Use of Company Assets .

6.1 All directors, officers and employees should protect the Company’s assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on the Company’s profitability and are prohibited.

6.2 All Company assets should be used only for legitimate business purposes. Any suspected incident of fraud or theft should be reported for investigation immediately.

 

3


6.3 The obligation to protect Company assets includes the Company’s proprietary information. Proprietary information includes intellectual property such as trade secrets, patents, trademarks, and copyrights, as well as business and marketing plans, engineering and manufacturing ideas, designs, databases, records and any non-public financial data or reports. Unauthorized use or distribution of this information is prohibited and could also be illegal and result in civil or criminal penalties.

7. Corporate Opportunities . All directors, officers and employees owe a duty to the Company to advance its interests when the opportunity arises. Directors, officers and employees are prohibited from taking for themselves personally (or for the benefit of friends or family members) opportunities that are discovered through the use of Company assets, property, information or position. Directors, officers and employees may not use Company assets, property, information or position for personal gain (including gain of friends or family members). In addition, no director, officer or employee may compete with the Company.

8. Confidentiality . Directors, officers and employees should maintain the confidentiality of information entrusted to them by the Company or by its customers, suppliers or partners, except when disclosure is expressly authorized or legally required. Confidential information includes all non-public information (regardless of its source) that might be of use to the Company’s competitors or harmful to the Company or its customers, suppliers or partners if disclosed.

9. Fair Dealing . Each director, officer and employee must deal fairly with the Company’s customers, suppliers, partners, service providers, competitors, employees and anyone else with whom he or she has contact in the course of performing his or her job. No director, officer or employee may take unfair advantage of anyone through manipulation, concealment, abuse or privileged information, misrepresentation of facts or any other unfair dealing practice.

10. Reporting and Enforcement .

10.1 Reporting and Investigation of Violations.

(a) Actions prohibited by this Code involving directors or executive officers must be reported to the Audit Committee.

(b) Actions prohibited by this Code involving any other person must be reported to the Chief Compliance Officer.

 

4


(c) After receiving a report of an alleged prohibited action, the Audit Committee or the Chief Compliance Officer must promptly take all appropriate actions necessary to investigate.

(d) All directors, officers and employees are expected to cooperate in any internal investigation of misconduct.

10.2 Enforcement .

(a) The Company must ensure prompt and consistent action against violations of this Code.

(b) If, after investigating a report of an alleged prohibited action by a director or executive officer, the Audit Committee determines that a violation of this Code has occurred, the Audit Committee will report such determination to the Board of Directors.

(c) If, after investigating a report of an alleged prohibited action by any other person, the Chief Compliance Officer determines that a violation of this Code has occurred, the Chief Compliance Officer will report such determination to the Chief Executive Officer.

(d) Upon receipt of a determination that there has been a violation of this Code, the Board of Directors or the Chief Executive Officer will take such preventative or disciplinary action as it deems appropriate, including, but not limited to, reassignment, demotion, dismissal and, in the event of criminal conduct or other serious violations of the law, notification of appropriate governmental authorities.

10.3 Waivers .

(a) Each of the Board of Directors (in the case of a violation by a director or executive officer) and the Chief Legal Officer (in the case of a violation by any other person) may, in its discretion, waive any violation of this Code.

(b) Any waiver for a director or an executive officer shall be disclosed as required by SEC and the NASDAQ rules.

10.4 Prohibition on Retaliation .

The Company does not tolerate acts of retaliation against any director, officer or employee who makes a good faith report of known or suspected acts of misconduct or other violations of this Code.

 

5


ACKNOWLEDGMENT OF RECEIPT AND REVIEW

To be signed and returned to the Chief Compliance Officer.

I,                     , acknowledge that I have received and read a copy of The ExOne Company Code of Ethics and Business Conduct. I understand the contents of the Code and I agree to comply with the policies and procedures set out in the Code.

I understand that I should approach the Chief Compliance Officer if I have any questions about the Code generally or any questions about reporting a suspected conflict of interest or other violation of the Code.

 

[NAME]
[PRINTED NAME]
 
[DATE]

 

6