Common use of PURCHASE AND SALE OF ASSETS AND ASSUMPTION Clause in Contracts

PURCHASE AND SALE OF ASSETS AND ASSUMPTION. OF LIABILITIES 9 Section 2.1 Purchase of Seller Assets and Assumption of Seller Liabilities 9 Section 2.2 Purchase of Maquiladora Assets and Assumption of Maquiladora Liabilities 10 Section 2.3 Purchased and Excluded Assets 10 Section 2.4 Assumed and Excluded Liabilities 13 ARTICLE III PURCHASE PRICE AND CLOSINGS 13 Section 3.1 Closing 13 Section 3.2 Maquiladora Closing 14 Section 3.3 Purchase Price 14 Section 3.4 Purchase Price Adjustment 14 Section 3.5 Allocation of Purchase Price 15 ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SELLER 16 Section 4.1 Organization 16 Section 4.2 Authorization of Transaction 16 Section 4.3 Noncontravention; Consents 16 Section 4.4 Financial Statements 17 Section 4.5 Absence of Certain Changes 17 Section 4.6 Title to and Sufficiency of Assets 18 Section 4.7 Contracts 19 Section 4.8 Real Property 19 Section 4.9 Intellectual Property 20 Section 4.10 Tax Matters 21 Section 4.11 Legal Compliance; Permits 21 Section 4.12 Litigation 22 Section 4.13 Product Liability; Product Warranties 22 Section 4.14 Employees and Employee Benefits 22 TABLE OF CONTENTS (continued) Page Section 4.15 Environmental 23 Section 4.16 Customers and Suppliers 23 Section 4.17 Brokers’ Fees 24 Section 4.18 Insurance 24 Section 4.19 Accounts Receivable 24 Section 4.20 Inventory 24 Section 4.21 LIMITATIONS ON REPRESENTATIONS AND WARRANTIES 24 ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE BUYER 25 Section 5.1 Organization 25 Section 5.2 Authorization of Transaction 25 Section 5.3 Noncontravention; Consents 25 Section 5.4 Litigation 26 Section 5.5 Availability of Funds 26 Section 5.6 Investigation 26 Section 5.7 Brokers’ Fees 26 Section 5.8 LIMITATIONS ON THE SELLER’S REPRESENTATIONS AND WARRANTIES 26 ARTICLE VI COVENANTS 27 Section 6.1 General 27 Section 6.2 Consents; Nonassignable Contracts 27 Section 6.3 Apportioned Obligations 28 Section 6.4 Agreements Regarding Employee Matters 29 Section 6.5 Agreements Regarding Tax Matters 30 Section 6.6 Preservation of Records 31 Section 6.7 Seller’s Obligation to Change its Name 32 Section 6.8 Non-Competition; Non-Solicitation 32

PURCHASE AND SALE OF ASSETS AND ASSUMPTION. OF LIABILITIES 9 1 Section 2.1 Purchase of Seller 1.1 Transferred Assets and 1 Section 1.2 Excluded Assets 3 Section 1.3 Assumption of Seller Liabilities 9 3 Section 2.2 Purchase of Maquiladora Assets and Assumption of Maquiladora 1.4 Liabilities 10 Section 2.3 Purchased and Excluded Assets 10 Section 2.4 Not Assumed and Excluded Liabilities 13 by Purchaser 5 ARTICLE III II. CLOSING, CALCULATION OF PURCHASE PRICE AND CLOSINGS CLOSING DELIVERIES 6 Section 2.1 Closing 6 Section 2.2 Calculation and Payment of Payment Amount 7 Section 2.3 Post-Closing Adjustments 8 Section 2.4 Prorations 10 Section 2.5 Closing Deliveries 11 Section 2.6 Allocation of the Payment Amount 13 Section 3.1 Closing 2.7 Further Assurances 13 Section 3.2 Maquiladora Closing 14 Section 3.3 Purchase Price 14 Section 3.4 Purchase Price Adjustment 14 Section 3.5 Allocation of Purchase Price 15 ARTICLE IV III. REPRESENTATIONS AND WARRANTIES OF THE SELLER 16 14 Section 4.1 3.1 Organization 16 14 Section 4.2 3.2 Authorization 14 Section 3.3 Non-Contravention 14 Section 3.4 Consents to Transaction 14 Section 3.5 Compliance with Law 15 Section 3.6 Litigation or Proceedings 15 Section 3.7 Title to and Condition of Transaction 16 Assets 15 Section 4.3 Noncontravention; Consents 16 Section 4.4 Financial Statements 3.8 Environmental Matters 17 Section 4.5 3.9 Employee Matters 18 Section 3.10 Taxes 19 Section 3.11 Deposit Liabilities 19 Section 3.12 Loans 20 Section 3.13 Agreements with Governmental Authorities 21 Section 3.14 No Brokers or Agents 21 Section 3.15 XXX Account Documentation 22 Section 3.16 Personal Property 22 Section 3.17 Records 22 Section 3.18 Absence of Certain Changes 17 Section 4.6 Title to and Sufficiency of Assets 18 Section 4.7 Contracts 19 Section 4.8 Real Property 19 Section 4.9 Intellectual Property 20 Section 4.10 Tax Matters 21 Section 4.11 Legal Compliance; Permits 21 Section 4.12 Litigation Events 22 Section 4.13 Product Liability; Product 3.19 Insurance 23 Section 3.20 Assumed Contracts 24 Section 3.21 Community Reinvestment Act and Fair Lending 24 Section 3.22 Undisclosed Liabilities 24 Section 3.23 Seller’s Official Checks 24 Section 3.24 Inter-Branch Transfer 24 Section 3.25 Representations and Warranties 22 24 ARTICLE IV. REPRESENTATIONS AND WARRANTIES OF PURCHASER 24 Section 4.14 Employees and Employee Benefits 22 4.1 Organization 24 Section 4.2 Authorization 25 TABLE OF CONTENTS (continued) Page Section 4.15 Environmental 23 Section 4.16 Customers and Suppliers 23 Section 4.17 Brokers’ Fees 24 Section 4.18 Insurance 24 Section 4.19 Accounts Receivable 24 Section 4.20 Inventory 24 Section 4.21 LIMITATIONS ON REPRESENTATIONS AND WARRANTIES 24 ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE BUYER 4.3 Non-Contravention 25 Section 5.1 Organization 25 Section 5.2 Authorization of 4.4 Consents to Transaction 25 Section 5.3 Noncontravention; Consents 4.5 Proceedings or Litigation 25 Section 5.4 Litigation 4.6 Regulatory Matters 25 Section 4.7 No Brokers or Agents 25 Section 4.8 Representations and Warranties 26 ARTICLE V. PRE-CLOSING COVENANTS 26 Section 5.5 Availability 5.1 Operation of Funds Business 26 Section 5.2 Notice of Potential Material Adverse Effect 27 Section 5.3 Public Announcements 28 Section 5.4 Exclusivity 28 Section 5.5 Regulatory Matters and Approvals 29 Section 5.6 Investigation 26 Employment 29 Section 5.7 Brokers’ Fees 26 Conveyance of Loans 31 Section 5.8 LIMITATIONS ON THE SELLER’S REPRESENTATIONS AND WARRANTIES 26 ARTICLE VI COVENANTS 27 Section 6.1 General 27 Section 6.2 Consents; Nonassignable Contracts 27 Section 6.3 Apportioned Obligations 28 Section 6.4 Agreements Regarding Employee Matters 29 Section 6.5 Agreements Regarding Tax Matters 30 Section 6.6 Preservation Availability of Records 31 Section 6.7 Seller’s Obligation to Change its Name 5.9 Maintenance of Properties 31 Section 5.10 Insurance 31 Section 5.11 Cooperation 32 Section 5.12 Landlord Consents 32 Section 5.13 Third Party Consents 32 Section 5.14 Insurance Proceeds and Casualty Payments 33 Section 5.15 Environmental Reports and Investigations 33 Section 5.16 Indebtedness and Collateral Obligations 35 Section 5.17 Loan Management 35 Section 5.18 Owned Real Property 35 Section 5.19 Condemnation 37 Section 5.20 MS Financial, Inc. Shareholder Meeting and Proxy Statement 37 ARTICLE VI. TRANSITIONAL MATTERS AND POST-CLOSING COVENANTS 37 Section 6.1 General 37 Section 6.2 Transition Planning 38 Section 6.3 Access 38 Section 6.4 Data Conversion 39 Section 6.5 Customers 39 Section 6.6 Direct Deposits 40 Section 6.7 Direct Debits 41 Section 6.8 Non-CompetitionEscheat Deposits 41 Section 6.9 Retirement Accounts 41 Section 6.10 Interest Reporting and Withholding 41 Section 6.11 Negotiable Instruments 42 Section 6.12 ATM Access/Debit Cards; POS Cards 42 Section 6.13 Handling of Certain Items 43 Section 6.14 Equipment Installation; Employee Training 44 Section 6.15 Non-Solicitation 32of Employees 44 Section 6.16 Non-Solicitation of Business and Covenant Not to Compete 45 TABLE OF CONTENTS (continued) Page Section 6.17 Names and Marks 46 Section 6.18 Inter-Branch Transfer 46

PURCHASE AND SALE OF ASSETS AND ASSUMPTION. OF LIABILITIES 9 7 Section 2.1 Purchase of Seller Assets and Assumption of Seller Liabilities 9 7 Section 2.2 Purchase of Maquiladora Assets and Assumption of Maquiladora Liabilities 10 Section 2.3 Purchased and Excluded Assets 10 Assets. 7 Section 2.4 2.3 Assumed and Excluded Liabilities 13 Liabilities. 10 ARTICLE III - PURCHASE PRICE AND CLOSINGS 13 CLOSING 11 Section 3.1 Closing 13 11 Section 3.2 Maquiladora Closing 14 Purchase Price 11 Section 3.3 Purchase Price 14 Section 3.4 Purchase Price Adjustment 14 Section 3.5 Allocation of Purchase Price 15 Price. 11 Section 3.4 Earnout. 12 ARTICLE IV - REPRESENTATIONS AND WARRANTIES OF THE SELLER 16 14 Section 4.1 Organization 16 14 Section 4.2 Authorization of Transaction 16 14 Section 4.3 Noncontravention; Consents 16 Consents. 14 Section 4.4 Financial Statements 17 Statements. 15 Section 4.5 Accounts Receivable 15 Section 4.6 Absence of Certain Changes or Events Subsequent to Balance Sheet 15 Section 4.7 Tax Matters. 16 Section 4.8 Material Contracts. 16 Section 4.9 Government Contracts. 17 Section 4.6 4.10 Title to and Sufficiency of Purchased Assets 18 Section 4.7 Contracts 4.11 Real Property. 18 Section 4.12 Permits 18 Section 4.13 Intellectual Property. 19 Section 4.8 Real Property 4.14 Litigation 19 Section 4.9 Intellectual Property 20 Section 4.10 Tax Matters 21 Section 4.11 Legal Compliance; Permits 21 Section 4.12 Litigation 22 Section 4.13 Product Liability; Product Warranties 22 Section 4.14 4.15 Employees and Employee Benefits 22 TABLE OF CONTENTS (continued) Page Section 4.15 Environmental 23 Benefits. 19 Section 4.16 Customers and Suppliers 23 Environmental Matters. 20 Section 4.17 Brokers’ Fees 24 Legal Compliance 21 Section 4.18 Insurance 24 Affiliate Transactions 21 Section 4.19 Accounts Receivable 24 Brokers' Fees 21 Section 4.20 Inventory 24 Suppliers; Customers 21 Section 4.21 LIMITATIONS Product Warranty 21 Section 4.22 Export Control Regulations 21 Section 4.23 LIMITATION ON REPRESENTATIONS AND WARRANTIES 24 21 ARTICLE V - REPRESENTATIONS AND WARRANTIES OF THE BUYER 25 22 Section 5.1 Organization 25 22 Section 5.2 Authorization of Transaction 25 22 Section 5.3 Noncontravention; Consents 25 Consents. 22 Section 5.4 Litigation 26 23 Section 5.5 Availability of Funds 26 Brokers' Fees. 23 Section 5.6 Investigation 26 Section 5.7 Brokers’ Fees 26 Section 5.8 LIMITATIONS LIMITATION ON THE SELLER’S REPRESENTATIONS AND 'S WARRANTIES 26 23 i ARTICLE VI - COVENANTS 27 23 Section 6.1 General 27 23 Section 6.2 Post-Closing Consents; Nonassignable Contracts 27 24 Section 6.3 Apportioned Obligations 28 Novation of Government Contracts 24 Section 6.4 Agreements Regarding Employee Matters 29 Litigation Support 25 Section 6.5 Pro-rations 26 Section 6.6 Agreements Regarding Tax Matters 30 Section 6.6 Preservation of Records 31 Matters. 26 Section 6.7 Seller’s Obligation to Change its Name 32 Records and Documents 27 Section 6.8 Intellectual Property; Use of Excluded Names. 27 Section 6.9 Non-Competition; Non-Solicitation 32Solicitation. 28 Section 6.10 Remittance of Receivables 29 ARTICLE VII - EMPLOYEE MATTERS 29 Section 7.1 Employment 29 Section 7.2 Employee Benefit Matters. 29 Section 7.3 Defined Contribution Plans 30 Section 7.4 Compliance with WARN 30 ARTICLE IX - CLOSING CONDITIONS 30 Section 8.1 Closing Deliveries of the Seller 30 Section 8.2 Closing Deliveries of the Buyer 31 ARTICLE VIII - REMEDIES 32 Section 9.1 Survival 32 Section 9.2 Indemnification by the Seller. 32 Section 9.3 Indemnification by the Buyer. 33 Section 9.4 Procedures for Indemnification. 33 Section 9.5 Certain Limitations 34 Section 9.6 Certain Benefits 34 Section 9.7 Treatment of Indemnity Payments 35 Section 9.8 Exclusive Remedy 35 Section 9.9 Mitigation 35 ARTICLE IX - MISCELLANEOUS 35 Section 10.1 Notices 35 Section 10.2 Expenses; No Offset 36 Section 10.3 Disclosure Schedules 36 Section 10.4 Bulk Sales or Transfer Laws 36 Section 10.5 Assignment; Successors and Assigns 36 Section 10.6 Amendment; Waiver 36 Section 10.7 Severability; Specific Performance 36 Section 10.8 Counterparts 37 Section 10.9 Descriptive Headings 37 Section 10.10 No Third-Party Beneficiaries 37 Section 10.11 Entire Agreement 37 Section 10.12 Exhibits and Schedules 37 Section 10.13 Governing Law 37 Section 10.14 Independence of Warranties and Representations 37 EXHIBITS: Exhibit A Xxxx of Sale and Assignment and Assumption Agreement Exhibit B Assignment of Patents Exhibit C Assignment of Trademarks Exhibit D Assignment and Assumption of Leases Exhibit E Transition Services Agreement Exhibit F Associate Contractor Agreement

PURCHASE AND SALE OF ASSETS AND ASSUMPTION. OF LIABILITIES 9 Section 2.1 Purchase of Seller Assets and Sale 9 2.2 Assumption of Seller Liabilities 9 Section 2.2 Purchase of Maquiladora Assets and Assumption of Maquiladora Liabilities 10 Section 2.3 Purchased and Excluded Assets 10 Section 2.4 Assumed and Excluded Liabilities 13 ARTICLE III PURCHASE PRICE AND CLOSINGS 13 Section 3.1 Closing 13 Section 3.2 Maquiladora Closing 14 Section 3.3 The Purchase Price 14 Section 3.4 9 2.4 Payment of Purchase Price Adjustment 14 Section 3.5 9 2.5 Allocation of Purchase Price 15 9 ARTICLE IV 3. CLOSING 10 3.1 Closing 10 3.2 Closing Obligations 10 ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF THE SELLER 16 Section 11 4.1 Organization 16 Section and Good Standing 11 4.2 Authorization of Transaction 16 Section Authority; No Conflict 11 4.3 Noncontravention; Consents 16 Section Subsidiaries 12 4.4 Financial Statements 17 Section 12 4.5 Books and Records 12 4.6 Title to Properties; Encumbrances 13 4.7 Accounts Receivable 13 4.8 Inventory 13 4.9 No Undisclosed Liabilities 13 4.10 Taxes 13 4.11 No Material Adverse Change 14 4.12 Employee Benefits 14 4.13 Compliance with Legal Requirements; Governmental Authorizations 15 4.14 Legal Proceedings; Orders 16 4.15 Absence of Certain Changes and Events 16 4.16 Contracts; No Defaults 17 Section 4.6 Title to and Sufficiency of Assets 18 Section 4.7 Contracts 4.17 Insurance 19 Section 4.8 Real Property 4.18 Environmental Matters 19 Section 4.9 4.19 Labor Relations; Compliance 20 4.20 Intellectual Property 20 Section 4.10 Tax Matters 21 Section 4.11 Legal Compliance4.21 Certain Payments 22 4.22 Relationships with Related Persons 22 4.23 Brokers Or Finders 22 4.24 Disclosure 22 4.25 Investment 23 ARTICLE 5. REPRESENTATIONS AND WARRANTIES OF PURCHASER 24 5.1 Organization and Good Standing 24 5.2 Authority; Permits 21 Section 4.12 Litigation 22 Section 4.13 Product Liability; Product Warranties 22 Section 4.14 Employees and Employee Benefits 22 TABLE OF CONTENTS No Conflict 24 5.3 Purchaser Common Stock 25 Table of Contents (continued) Page 5.4 Certain Proceedings 25 ARTICLE 6. COVENANTS OF Seller 25 6.1 Access and Investigation 25 6.2 Operation of the Business of Seller 25 6.3 Negative Covenant 26 6.4 Required Approvals 26 6.5 Notification; Supplement to Disclosure Memorandum 26 6.6 No Negotiation 26 6.7 Best Efforts 26 6.8 No Competition 26 ARTICLE 7. COVENANTS OF PURCHASER 27 7.1 Approvals of Governmental Bodies 27 7.2 Best Efforts 27 ARTICLE 8. CONDITIONS PRECEDENT TO OBLIGATION OF PURCHASER TO CLOSE 27 8.1 Accuracy of Representations 28 8.2 Performance of Seller 28 8.3 Consents 28 8.4 No Proceedings 28 8.5 No Claim Regarding Asset Ownership or Sale Proceeds 28 8.6 No Prohibition 28 8.7 Due Diligence 28 8.8 Payment of Indebtedness 28 ARTICLE 9. CONDITIONS PRECEDENT TO Seller’s OBLIGATION TO CLOSE 29 9.1 Accuracy of Representations 29 9.2 Purchaser’s Performance 29 9.3 Consents 29 9.4 No Injunction 29 ARTICLE 10. TERMINATION 29 10.1 Termination Events 29 10.2 Effect of Termination 30 ARTICLE 11. INDEMNIFICATION; REMEDIES 30 11.1 Survival; Right to Indemnification Not Affected By Knowledge 30 11.2 Indemnification and Payment of Damages By Seller 30 11.3 Indemnification and Payment of Damages By Purchaser 31 11.4 Time Limitations 31 11.5 Procedure For Indemnification - Third Party Claims 31 11.6 Procedure For Indemnification - Other Claims 33 ARTICLE 12. GENERAL PROVISIONS 33 12.1 Expenses 33 12.2 Public Announcements 33 Table of Contents (continued) Page 12.3 Confidentiality 33 12.4 Notices 34 12.5 Further Assurances 34 12.6 Waiver 34 12.7 Entire Agreement and Modification 35 12.8 Disclosure Memorandum 35 12.9 Assignments, Successors, and No Third-Party Rights 35 12.10 Severability 35 12.11 Section 4.15 Environmental 23 Section 4.16 Customers Headings, Construction 35 12.12 Time of Essence 35 12.13 Governing Law 35 12.14 Counterparts 36 Exhibit Index Exhibit 1-A Exhibit 1-B Exhibit 1-C Exhibit 1-D Exhibit 2.5 Exhibit 2.6-A Exhibit 2.6-B List of Certain Assets Xxxx of Sale Excluded Assets Excluded Liabilities Allocation of Purchase Price Escrow Agreement Security and Suppliers 23 Section 4.17 Brokers’ Fees 24 Section 4.18 Insurance 24 Section 4.19 Pledge Agreement Definition Index Accounts Receivable 24 Section 4.7 Applicable Contract Article 1 Assets Article 1 Assumed Liabilities Article 1 Balance Sheet Section 4.4 Best Efforts Article 1 Xxxx of Sale Article 1 Breach Article 1 CERCLA Article 1 Closing Section 3.1 Closing Date Section 3.1 Closing Obligations Section 3.2 Competing Business Section 4.24 Consent Article 1 Contemplated Transactions Article 1 Contract Article 1 Copyrights Section 4.20 Inventory 24 Damages Section 4.21 LIMITATIONS ON REPRESENTATIONS AND WARRANTIES 24 ARTICLE V REPRESENTATIONS AND WARRANTIES OF THE BUYER 25 11.2 Disclosure Memorandum Article 1 Encumbrance Article 1 Environment Article 1 Environmental, Health and Safety Liabilities Article 1 Environmental Law Article 1 ERISA Article 1 ERISA Plans Section 5.1 Organization 25 4.12(b) Excluded Assets Article 1 Excluded Liabilities Article 1 Facilities Article 1 Family Article 1 FWPCA Article 1 GAAP Article 1 Governmental Authorization Article 1 Governmental Body Article 1 Hazardous Activity Article 1 Hazardous Materials Article 1 Indemnified Persons Section 5.2 Authorization of Transaction 25 11.2 Intellectual Property Assets Section 5.3 Noncontravention; Consents 25 Section 5.4 Litigation 26 Section 5.5 Availability of Funds 26 Section 5.6 Investigation 26 Section 5.7 Brokers’ Fees 26 Section 5.8 LIMITATIONS ON THE SELLER’S REPRESENTATIONS AND WARRANTIES 26 ARTICLE VI COVENANTS 27 Section 6.1 General 27 Section 6.2 Consents; Nonassignable Contracts 27 Section 6.3 Apportioned Obligations 28 Section 6.4 Agreements Regarding Employee Matters 29 Section 6.5 Agreements Regarding Tax Matters 30 Section 6.6 Preservation of Records 31 Section 6.7 Seller’s Obligation to Change its Name 32 Section 6.8 Non-Competition; Non-Solicitation 324.20 IRC Article 1 IRS Article 1 Knowledge Article 1 Legal Requirement Article 1