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<SEC-DOCUMENT>0000950123-10-107575.txt : 20101122
<SEC-HEADER>0000950123-10-107575.hdr.sgml : 20101122
<ACCEPTANCE-DATETIME>20101122060357
ACCESSION NUMBER:		0000950123-10-107575
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20101119
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20101122
DATE AS OF CHANGE:		20101122

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INSTEEL INDUSTRIES INC
		CENTRAL INDEX KEY:			0000764401
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES & ROLLING & FINISHING MILLS [3310]
		IRS NUMBER:				560674867
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09929
		FILM NUMBER:		101207154

	BUSINESS ADDRESS:	
		STREET 1:		1373 BOGGS DR
		CITY:			MOUNT AIRY
		STATE:			NC
		ZIP:			27030
		BUSINESS PHONE:		9107862141

	MAIL ADDRESS:	
		STREET 1:		1373 BOGGS DRIVE
		CITY:			MOUNT AIRY
		STATE:			NC
		ZIP:			27030

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EXPOSAIC INDUSTRIES INC
		DATE OF NAME CHANGE:	19880511
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>g25361e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vk</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>








<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>UNITED STATES SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>CURRENT REPORT<BR>
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>Date of Report (Date of earliest event reported): November&nbsp;19, 2010</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
<B>Commission File Number 1-9929</B></DIV>


<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B><FONT style="border-bottom: 1px solid #000000">Insteel Industries, Inc.</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">
(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>North Carolina</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>56-0674867</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of <BR>
incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer<BR>
Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>1373 Boggs Drive, Mount Airy, North Carolina</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>27030</B></TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt">
Registrant&#146;s telephone number, including area code: (<B>336) 786-2141</B></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">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:</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" nowrap align="left"><FONT style="font-family: Wingdings">&#111;</FONT></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>

</TABLE>
</DIV>

<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Item&nbsp;9.01. Financial Statements and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003"> SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004"> EXHIBIT INDEX</A></TD></TR>
<TR><TD colspan="9"><A HREF="g25361exv10w1.htm">EX-10.1</A></TD></TR>
<TR><TD colspan="9"><A HREF="g25361exv10w2.htm">EX-10.2</A></TD></TR>
<TR><TD colspan="9"><A HREF="g25361exv99w1.htm">EX-99.1</A></TD></TR>
</TABLE>
</CENTER>
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<!-- link1 "Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets" -->
<DIV align="left"><A NAME="000"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.01 Completion of Acquisition or Disposition of Assets</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">On November&nbsp;19, 2010 Insteel Industries, Inc., through its wholly-owned subsidiary, Insteel Wire
Products Company (together referred to as &#147;Insteel&#148;), entered into and consummated an Asset
Purchase Agreement (the &#147;Agreement&#148;) with Ivy Steel &#038; Wire, Inc. (&#147;Ivy&#148;) pursuant to which Insteel
purchased certain assets for a purchase price of $51.1&nbsp;million, subject to certain post-closing
adjustments (the &#147;Ivy Acquisition&#148;). Insteel also issued a press release on November&nbsp;19, 2011
announcing the consummation of the Ivy Acquisition, which is attached hereto as Exhibit&nbsp;99.1 and is
incorporated herein by reference.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ivy, a division of Oldcastle, Inc., the U.S. holding company of CRH PLC, is one of the nation&#146;s
largest producers of welded wire reinforcement and wire products for concrete construction
applications. Ivy operates five facilities, which are located in Arizona, Florida, Missouri,
Pennsylvania and Texas.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the terms of the Agreement, Insteel acquired, among other assets, certain of Ivy&#146;s
inventories, and its production facilities located in Hazleton, Pennsylvania; Jacksonville,
Florida; Kingman, Arizona; and St. Joseph, Missouri, in addition to the production equipment at its
Houston, Texas facility, for $37.6&nbsp;million of cash and a $13.5&nbsp;million secured subordinated
promissory note (the &#147;Seller Note&#148;). The Seller Note is secured by the Kingman, Arizona and St.
Joseph, Missouri facilities and made by Insteel Wire Products Company payable to Ivy over five
years. Ivy retains, among other assets, accounts receivable and the assets associated with its
Pilot Steel operations in Pompano Beach, Florida<B>. </B>The purchase price is subject to an adjustment
to be determined based upon the closing working capital balance and may be further adjusted if Ivy
does not comply with certain obligations in the Agreement. The cash portion of the purchase price
was funded with cash and cash equivalents on hand. The purchase price is subject to a further $5.0
million reduction (taken against the Seller Note) if Ivy and its independent registered public
accounting firm fail to deliver on or before January&nbsp;28, 2011 certain audited financial statements
and related consents, opinions and reports related to Ivy&#146;s business to be filed by Insteel as an
exhibit to a Current Report on Form 8-K (or an amendment thereto) as required in connection with
the Ivy Acquisition by U.S. Securities and Exchange Commission rules and regulations (the
&#147;Financial Statements&#148;). Insteel will reimburse Ivy for up to $2.0&nbsp;million in aggregate severance
costs for Ivy employees terminated in connection with the transaction; if severance costs paid by
both Ivy and Insteel (with respect to Ivy employees hired by Insteel in the transaction who are
terminated within six months of closing) exceed $2.0&nbsp;million, Ivy will reimburse Insteel for any
amount Insteel pays in excess of $2.0&nbsp;million.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Insteel and Ivy made customary representations, warranties and covenants in the Agreement and each
party has certain indemnification obligations under the Agreement. In addition to customary
obligations, the indemnification obligations of Ivy extend generally to losses or damages arising
from or related to environmental laws affecting the acquired assets or from so-called &#147;Buy
American&#148; laws (and related laws, rules and regulations). The Agreement prohibits Ivy from
competing in the business of producing steel wire and welded wire reinforcement products (other
than for its own use) for three years.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The disclosures of the material terms and conditions of the Seller Note contained in Item&nbsp;2.03,
below, are hereby incorporated into this Item&nbsp;2.01 by reference.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The foregoing description of the Ivy Acquisition and the Agreement does not purport to be complete
and is qualified in its entirety by reference to the complete text of the Agreement, which is
attached hereto as Exhibit&nbsp;10.1 and incorporated herein by reference.</I></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The Agreement has been included to provide shareholders with information regarding its terms. It is
not intended to provide any other factual information about Insteel or Ivy or their respective
subsidiaries or affiliates. The representations, warranties and covenants contained in the
Agreement were made solely for purposes of the Agreement and as of specific dates, were solely for
the benefit of the parties to the Agreement, may be subject to limitations agreed upon by the
contracting parties, including being qualified by confidential disclosures made for the purposes of
allocating contractual risk between the parties to the Agreement instead of establishing these
matters as facts, and may be subject to standards of materiality applicable to the contracting
parties that differ from those applicable to shareholders. Shareholders are not third-party
beneficiaries under the Agreement and should not rely on the representations, warranties and
covenants or any descriptions thereof as characterizations of the actual state of facts or
condition of Insteel or Ivy or their respective subsidiaries or affiliates. Moreover, information
concerning the subject matter of the representations and warranties may change after the date of
the Agreement, which subsequent information may or may not be fully reflected in Insteel&#146;s public
disclosures.</I></DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "Item&nbsp;2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant" -->
<DIV align="left"><A NAME="001"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As partial payment of the purchase price in the Ivy Acquisition, Insteel Wire Products Company
provided the $13.5&nbsp;million Seller Note to Ivy, which bears interest at an annual rate of 6% and is
secured by a first-priority interest in Insteel Wire Products Company&#146;s interest in its newly
acquired Kingman, Arizona and St. Joseph, Missouri facilities. Interest payments pursuant to the
Seller Note are to be made semi-annually in arrears. In addition, repayment of principal is
required in five annual payments as follows: $675,000 on November&nbsp;19 of each of 2011, 2012 and
2013, and $5.7&nbsp;million on November&nbsp;19 of each of 2014 and 2015. The aggregate outstanding
principal amount and periodic payments described in the immediately preceding sentence would be
reduced by $5.0&nbsp;million (in the aggregate) if the Financial Statements are not timely delivered to
Insteel. The Seller Note includes customary events of default that permit Ivy to pursue remedies
up to and including declaring all or any portion of the obligations due and payable. The events of
default include failure to make payments and Insteel&#146;s bankruptcy or insolvency.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The disclosures of the material terms and conditions of the Ivy Acquisition contained in Item&nbsp;2.01,
above, are hereby incorporated into this Item&nbsp;2.03 by reference.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><I>The foregoing description of the Seller Note does not purport to be complete and is qualified in
its entirety by reference to the complete text of the Seller Note, which is attached hereto as
Exhibit&nbsp;10.2 and incorporated herein by reference.</I></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Cautionary Note Regarding Forward-Looking Statements</I></U></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Current Report on Form 8-K contains forward-looking statements within the meaning of the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this news
release, the words &#147;believes,&#148; &#147;anticipates,&#148; &#147;expects,&#148; &#147;estimates,&#148; &#147;plans,&#148; &#147;intends,&#148; &#147;may,&#148;
&#147;should&#148; and similar expressions are intended to identify forward-looking statements. Although
Insteel believes that its plans, intentions and expectations reflected in or suggested by such
forward-looking statements are reasonable, such forward-looking statements are subject to a number
of risks and uncertainties, and Insteel can provide no assurances that such plans, intentions or
expectations will be achieved. Many of these risks and uncertainties are discussed in detail in
Insteel&#146;s periodic and other reports and statements that it files with the U.S. Securities and
Exchange Commission (the &#147;SEC&#148;), in particular in its Annual Report on Form 10-K for the year ended
October&nbsp;3, 2009. You should carefully review these risks and uncertainties.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All forward-looking statements attributable to Insteel or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. All forward-looking
statements speak only to the respective dates on which such statements are made and Insteel does
not undertake and specifically declines any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any future events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events, except as may be required by law.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is not possible to anticipate and list all risks and uncertainties that may affect Insteel&#146;s
future operations or financial performance; however, they include, but are not limited to, the
following: potential difficulties that may be encountered in integrating the Ivy Acquisition into
Insteel&#146;s existing business; potential difficulties in realizing synergies with respect to the Ivy
Acquisition; competitive and customer responses to Insteel&#146;s expanded business; general economic
and competitive conditions in the markets in which Insteel operates; credit market conditions and
the relative availability of financing to Insteel, its customers and the construction industry as a
whole; the continuation of reduced spending for nonresidential construction, particularly
commercial construction, and the impact on demand for Insteel&#146;s products; the timing of the
resolution of a new multi-year federal transportation funding authorization and the magnitude of
the infrastructure-related funding provided for that requires the use of Insteel&#146;s products; the
severity and duration of the downturn in residential construction and the impact on those portions
of Insteel&#146;s business that are correlated with the housing sector; the cyclical nature of the steel
and building material industries; fluctuations in the cost and availability of Insteel&#146;s primary
raw material, hot-rolled steel wire rod, from domestic and foreign suppliers; competitive pricing
pressures and Insteel&#146;s ability to raise selling prices in order to recover increases in wire rod
costs; changes in U.S. or foreign trade policy affecting imports or exports of steel wire rod or
Insteel&#146;s products; unanticipated changes in customer demand, order patterns and inventory levels;
the impact of weak demand and reduced capacity utilization levels on Insteel&#146;s unit manufacturing
costs; Insteel&#146;s ability to further develop the market for engineered structural mesh (&#147;ESM&#148;) and
expand its shipments of ESM; legal, environmental, economic or regulatory developments that
significantly impact Insteel&#146;s operating costs; unanticipated plant outages, equipment failures or
labor difficulties; continued escalation in certain of Insteel&#146;s</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">operating costs; and the other risks and uncertainties discussed in Insteel&#146;s Annual Report on Form
10-K for the year ended October&nbsp;3, 2009 and in other filings made by Insteel with the SEC.</DIV>

<!-- link1 "Item&nbsp;9.01. Financial Statements and Exhibits" -->
<DIV align="left"><A NAME="002"></A></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01. Financial Statements and Exhibits</B>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(a)&nbsp;Financial Statements of Businesses Acquired
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">The financial statements required to be filed with the
Securities and Exchange Commission (the &#147;SEC&#148;) relating to
the asset purchase transaction will be filed by amendment to
this Current Report on Form 8-K not later than February&nbsp;5,
2011.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(b)&nbsp;Pro Forma Financial Information
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">The pro forma financial information required to be filed with
the SEC relating to the asset purchase transaction will be
filed by amendment to this Current Report on Form 8-K not
later than February&nbsp;5, 2011.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">(d)
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="6%"></TD>
    <TD width="3%"></TD>
    <TD width="85%"></TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Asset Purchase Agreement between Insteel Wire Products
Company and Ivy Steel &#038; Wire, Inc. dated as of November&nbsp;19,
2010.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Secured Term Note dated as of November&nbsp;19, 2010, made and
delivered by Insteel Wire Products Company in favor of Ivy
Steel &#038; Wire, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Exhibit&nbsp;99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated November&nbsp;19, 2010, announcing the
purchase of certain assets of Ivy Steel &#038; Wire, Inc.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 " SIGNATURES" -->
<DIV align="left"><A NAME="003"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SIGNATURES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><U>INSTEEL INDUSTRIES, INC.</U><BR>
Registrant<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: November 19, 2010&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Michael C. Gazmarian
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Michael C. Gazmarian&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Vice President, Chief Financial Officer
and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>

</TABLE>
<!-- link1 " EXHIBIT INDEX" -->
<DIV align="left"><A NAME="004"></A></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="92%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Asset Purchase Agreement between Insteel Wire Products
Company and Ivy Steel &#038; Wire, Inc. dated as of November&nbsp;19,
2010.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Secured Term Note dated as of November&nbsp;19, 2010, made and
delivered by Insteel Wire Products Company in favor of Ivy
Steel &#038; Wire, Inc.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Press release dated November&nbsp;19, 2010, announcing the
purchase of certain assets of Ivy Steel &#038; Wire, Inc.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>g25361exv10w1.htm
<DESCRIPTION>EX-10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.1</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>EXECUTION VERSION</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ASSET PURCHASE AGREEMENT</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">By and Among
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>IVY STEEL &#038; WIRE, INC.</B>,
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as the Seller
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>OLDCASTLE BUILDING PRODUCTS, INC.</B>,
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as the Guarantor
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">and
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>INSTEEL WIRE PRODUCTS COMPANY</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">as the Buyer
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">Dated as of November&nbsp;19, 2010
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE I DEFINITIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.1 Certain Defined Terms</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;1.2 Table of Definitions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE II PURCHASE AND SALE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.1 Purchase and Sale of Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.2 Excluded Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.3 Assumed Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.4 Excluded Liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.5 Consideration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.6 Closing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">17</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.7 Post-Closing Adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">18</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.8 Post Closing Inventory Representation Adjustment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">19</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.9 Allocation of Purchase Price for Tax Purposes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;2.10 Proration of Certain Items</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">21</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.1 Organization and Qualification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.2 Authority</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">22</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.3 No Conflict; Required Filings and Consents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.4 Transferred Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">23</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.5 Books and Records</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.6 Title to and Sufficiency of Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.7 Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">24</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.8 Absence of Certain Changes or Events</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.9 Compliance with Laws; Permits and Licenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.10 Permits and Licenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.11 Real Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">25</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.12 Tangible Personal Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.13 Domestic Content</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.14 Intentionally Omitted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.15 Employee Plans</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.16 Labor and Employment Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.17 Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">29</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.18 Environmental Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.19 Insurance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.20 Transferred Contracts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">30</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.21 Intellectual Property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.22 Brokers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->i<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS<BR>
(Continued)</B>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.23 Customers and Suppliers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.24 Solvency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.25 Product Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.26 Related Party Transactions</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.27 Names</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.28 Litigation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;3.29 Exclusivity of Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE BUYER</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.1 Organization and Qualification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.2 Authority</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.3 No Conflict; Required Filings and Consents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">33</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.4 Financing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.5 Brokers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;4.6 Buyer&#146;s Investigation and Reliance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE V COVENANTS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.1 Employees and Employee Benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.2 Confidentiality</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.3 Use of Names</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.4 Refunds and Remittances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.5 No Solicitation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.6 Noncompetition and Nonsolicitation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">39</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.7 Bulk Sales</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.8 Public Announcements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.9 Delivery of Audited Financial Information</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">40</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;5.10 Further Assurances</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE VI TAX MATTERS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.1 Apportionment of Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.2 Transfer Taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;6.3 Tax Returns</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE VII CLOSING DELIVERABLES</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.1 Deliverables by the Seller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;7.2 Deliverables by the Buyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->ii<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>TABLE OF CONTENTS<BR>
(Continued)</B>
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE VIII INDEMNIFICATION</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.1 Indemnification by the Seller</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.2 Indemnification by the Buyer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.3 Procedures</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">47</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.4 Limits on Indemnification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">49</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.5 Tax Effect of Indemnification Payments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.6 Survival of Covenants, Representations and Warranties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.7 Exclusivity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.8 Indemnification &#151; Environmental and Domestic Manufacturing Matters</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">51</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;8.9 Miscellaneous</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">ARTICLE IX GENERAL PROVISIONS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.1 Fees and Expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.2 Amendment and Modification</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.3 Waiver</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.4 Notices</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">53</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.5 Interpretation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.6 Entire Agreement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">54</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.7 No Third-Party Beneficiaries</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.8 Governing Law</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.9 Submission to Jurisdiction</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.10 Disclosure Generally</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.11 Personal Liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.12 Assignment; Successors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.13 Enforcement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.14 Currency</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.15 Severability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.16 Waiver of Jury Trial</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.17 Arbitration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.18 Counterparts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">57</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.19 Facsimile Signature</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.20 Time of Essence</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.21 No Presumption Against Drafting Party</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Section&nbsp;9.22 Guarantee by Guarantor</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->iii<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ASSET PURCHASE AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASSET PURCHASE AGREEMENT, dated as of November&nbsp;19, 2010 (this &#147;<U>Agreement</U>&#148;), between
Ivy Steel &#038; Wire, Inc., a Delaware corporation (the &#147;<U>Seller</U>&#148;), Oldcastle Building Products,
Inc., a Delaware corporation (the &#147;<U>Guarantor</U>&#148;) and Insteel Wire Products Company, a North
Carolina corporation (the &#147;<U>Buyer</U>&#148;).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>RECITALS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.&nbsp;The Seller is engaged in the business of producing steel wire and welded wire reinforcement
products (the &#147;<U>Business</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.&nbsp;The Seller wishes to sell to the Buyer, and the Buyer wishes to purchase from the Seller,
certain assets of the Business used in the operation of the Business at the St. Joseph Facility,
the Jacksonville Facility, the Hazleton Facility, the Kingman Facility, the Aldine Facility and the
Tampa Facility, and in connection therewith the Buyer is willing to assume certain liabilities and
obligations of the Seller relating thereto as set forth in this Agreement, all upon the terms and
subject to the conditions set forth herein.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>AGREEMENT</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In consideration of the foregoing and the mutual covenants and agreements herein contained,
and intending to be legally bound hereby, the parties agree as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE I<BR>
DEFINITIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.1 <U>Certain Defined Terms</U>. For purposes of this Agreement:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>action</U>&#148; means any claim, action, suit, arbitration or proceeding by or before any
Governmental Authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Affiliate</U>&#148; means, with respect to any Person, any other Person that directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under common
control with, such first Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aldine Facility</U>&#148; means that separate facility of the Seller located at 12800 Aldine
Westfield Road, Houston, Texas 77039.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Aldine Lease</U>&#148; means that certain lease agreement related to the Aldine Facility real
estate, dated April&nbsp;11, 2005 between MMI Products, Inc. and GSL Partners Sub Eight, L.P., as
amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Ancillary Agreements</U>&#148; means the Bill of Sale, the Assignment and Assumption
Agreement, the Transition Services Agreement, the Houston Aldine Property Sublease, the Protocol
Agreement, the Guaranty Agreement and the Real Estate Documents.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Assignment and Assumption Agreement</U>&#148; means an instrument of assignment and assumption
substantially in the form attached hereto as <U>Exhibit&nbsp;A</U> pursuant to which the Seller shall
assign to the Buyer and the Buyer shall assume all of the Assumed Liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Bill of Sale</U>&#148; means a bill of sale substantially in the form attached hereto as
<U>Exhibit&nbsp;B</U> transferring to the Buyer all of the Transferred Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Books Accounts Payable</U>&#148; means accounts 2010-0000 (Accounts Payable-Trade), 2010-0001
(Accounts Payable &#151; Outstanding Checks), 2025-0000 (A/P &#151; Manual Accruals), 2029-0000 (A/P &#151; BOA
P-card Clearing Account), 2020-0001 (A/P &#151; PO System Accruals), 2030-0000 (A/P &#151; Freight
Clearing), 2031-0000 (A/P- Freight on Rod), 2045-0000 (A/P-Other) and 2045 &#151;0004 (A/P &#151; Wire
Scrap).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Day</U>&#148; means any day that is not a Saturday, a Sunday or other day on which
banks are required or authorized by Law to be closed in the State of Georgia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Business Employees</U>&#148; means those individuals listed on <U>Schedule&nbsp;5.1</U>. In
addition, solely for purposes of Section&nbsp;5.1(b) and Section&nbsp;2.4(b), employees at the Tampa Facility
shall be treated as Business Employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Buy American Law</U>&#148; means the Buy American Act, 41 U.S.C. &#167;&#167; 10a-10d, the Buy America
Act, 49 U.S.C. &#167;5323(j), the Trade Agreements Act, 19 U.S.C. &#167;&#167; 2501-2582, Division A, Section
1605 of the American Recovery and Reinvestment Act of 2009, the False Claims Act, 31 U.S.C.
&#167;&#167;3729-3733, and the Fraud Enforcement and Recovery Act of 2009, and 23 U.S.C. &#167;313 all as amended,
and all rules and regulations related thereto or issued thereunder, and any similar federal, state
or local law respecting the design, construction, production, content, manufacture, distribution,
marketing or sale of goods.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Buyer Material Adverse Effect</U>&#148; means any event, change, occurrence or effect that
would prevent, materially delay or materially impede the performance by the Buyer of its
obligations under this Agreement or the Ancillary Agreements or the consummation of the
transactions contemplated hereby or thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148; means the Internal Revenue Code of 1986, as amended through the date hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>control</U>,&#148; including the terms &#147;<U>controlled by</U>&#148; and &#147;<U>under common control
with</U>,&#148; means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting
securities, as trustee or executor, as general partner or managing member, by contract or
otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>delivery</U>&#148; including the term &#147;<U>delivered</U>&#148; means delivery of a physical or
electronic version, either in Person, by mail, delivery service, electronic transmission or
providing access to such item in a mutually agreed upon location, such as a physical or electronic
data room.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Domestic Content Liabilities</U>&#148; means any losses, damages, liabilities, claims, awards,
judgments, penalties, costs and expenses (including, without limitation, costs of investigating,
preparing or defending applicable claims or proceedings and reasonable legal fees, consulting fees
and disbursements), as and when incurred by such parties and whether or not related to a
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Third Party Claim arising out of or resulting from the non-compliance, compliance or alleged
non-compliance of the Seller or any Affiliate of the Seller with any Buy American Law (including
any of the foregoing that constitute punitive, consequential, indirect, special or incidental
damages or liabilities, including business interruption, loss of future revenue, profits or income,
or loss of business reputation or opportunity); <U>provided</U> that the Seller is not responsible
for the Buyer&#146;s misuse or inappropriate sale of any properly labeled products.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Employee Plans</U>&#148; means all &#147;employee benefit plans&#148; within the meaning of Section&nbsp;3(3)
of ERISA, whether or not funded and whether or not terminated, all formal written plans and all
other compensation and benefit plans, contracts, policies, programs and arrangements of the Seller
(other than routine administrative procedures) in connection with the Business in effect as of the
date hereof, whether or not subject to ERISA, including all pension, profit sharing, savings and
thrift, bonus, stock bonus, stock option or other cash or equity-based incentive or deferred
compensation, severance pay, vacation, travel, incentive and medical, disability, welfare and life
insurance plans in which any of the Business Employees or their dependents participate, whether or
not funded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Encumbrance</U>&#148; means any charge, claim, mortgage, lien, option, pledge, easement,
encroachment, right of first option, right of first refusal or similar restriction, including any
restriction on use, voting, transfer, receipt of income or exercise of any other attribute of
ownership, security interest or other restriction of any kind.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environment</U>&#148; means soil, land surface or subsurface strata, surface waters (including
navigable waters and ocean waters), groundwaters, drinking water supply, stream sediments, ambient
air (including indoor air), plant and animal life and any other environmental medium or natural
resource.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental, Health and Safety Liabilities</U>&#148; means any cost, damages, expense,
liability, obligation or other responsibility arising from or under any Environmental Law or
Occupational Safety and Health Law, including those consisting of or relating to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any environmental, health or safety matter or condition (including on-site or off-site
contamination, occupational safety and health and regulation of any chemical substance or product);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any fine, penalty, judgment, award, settlement, legal or administrative proceeding,
damages, loss, claim, demand or response, remedial or inspection cost or expense arising under any
Environmental Law or Occupational Safety and Health Law;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;financial responsibility under any Environmental Law or Occupational Safety and Health Law
for cleanup costs or corrective action, including any cleanup, removal, containment or other
remediation or response actions (&#147;<U>Cleanup</U>&#148;) required by any Environmental Law or
Occupational Safety and Health Law and for any natural resource damages; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any other compliance, corrective or remedial measure required under any Environmental Law
or Occupational Safety and Health Law.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms &#147;removal,&#148; &#147;remedial,&#148; and &#147;response action&#148; include the types of activities covered
by the United States Comprehensive Environmental Response, Compensation and Liability Act of 1980,
as amended (CERCLA).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Environmental Law</U>&#148; means any Law that requires or relates to:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;advising appropriate authorities, employees or the public of intended or actual Releases
of pollutants or hazardous substances or materials, violations of discharge limits or other
prohibitions and the commencement of activities, such as resource extraction or construction, that
could have significant impact on the Environment;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;preventing or reducing to acceptable levels the Release of pollutants or hazardous
substances or materials into the Environment;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;reducing the quantities, preventing the Release or minimizing the hazardous
characteristics of wastes that are generated;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;assuring that products are designed, formulated, packaged and used so that they do not
present unreasonable risks to human health or the Environment when used or disposed of;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;protecting resources, species or ecological amenities;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;reducing to acceptable levels the risks inherent in the transportation of hazardous
substances, pollutants, oil or other potentially harmful substances;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;cleaning up pollutants that have been Released, preventing the Threat of Release or paying
the costs of such clean up or prevention; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;making responsible parties pay private parties, or groups of them, for damages done to
their health or the Environment or permitting self-appointed representatives of the public interest
to recover for injuries done to public assets.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>ERISA</U>&#148; means the Employee Retirement Income Security Act of 1974, as amended.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exemption Certificates</U>&#148; means exemption certificates confirming the inapplicability
of Transfer Taxes, in the forms attached hereto as <U>Exhibit&nbsp;I</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Foreign Rod</U>&#148; means all wire rod of foreign origin that is equal to or greater than
8.0 millimeter in diameter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Governmental Authority</U>&#148; means any foreign or United States federal, state, local or
municipal or other governmental, regulatory or administrative authority, agency or commission or
any judicial or arbitral body.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Guaranty Agreement</U>&#148; means the guaranty agreement substantially in the form attached
hereto as <U>Exhibit&nbsp;C</U> of the Guarantor to guaranty the obligations of the Seller under this
Agreement and the other Ancillary Agreements.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazardous Material</U>&#148; means any substance, material or waste which is regulated by any
Governmental Authority including any material, substance or waste which is defined as a &#147;hazardous
waste,&#148; &#147;hazardous material,&#148; &#147;hazardous substance,&#148; &#147;extremely hazardous waste,&#148; &#147;restricted
hazardous waste,&#148; &#147;contaminant,&#148; &#147;toxic waste&#148; or &#147;toxic substance&#148; under any provision of
Environmental Law, and including petroleum, petroleum products, asbestos, presumed
asbestos-containing material or asbestos-containing material, urea formaldehyde and polychlorinated
biphenyls.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Hazleton Facility</U>&#148; means that separate facility of the Seller located at an address
listed as &#147;409A Forest Drive&#148; by the Hazle Township Zoning Office and &#147;Forest Road&#148; by the Hazle
Township Tax Collector and changed by Seller to &#147;503 Forest Street&#148;, Hazleton, Pennsylvania 18202.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Houston Clinton Facility</U>&#148; means that separate facility of the Seller located at 6933
Clinton Drive, Houston, Texas 77020.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>IFRS</U>&#148; means International Financial Reporting Standards as in effect on the date
hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Improvements</U>&#148; means all buildings and other improvements, fixtures and appurtenances
owned by the Seller and located on the Owned Real Property and all of the Seller&#146;s (or its
applicable Affiliate&#146;s) interest in any improvements, fixtures and appurtenances located on the
Leased Real Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Jacksonville Facility</U>&#148; means that separate facility of the Seller located at 3050
Melson Ave, Jacksonville, Florida 32254.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Kingman Facility</U>&#148; means that separate facility of the Seller located at 4750 North
Olympic Dr, Kingman, Arizona 86401.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Knowledge</U>&#148; with respect to the Seller means the actual (but not constructive or
imputed) knowledge of the persons listed in <U>Schedule&nbsp;1.1</U> as of the date of this Agreement
(or, with respect to a certificate delivered pursuant to this Agreement, as of the date of delivery
of such certificate).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Law</U>&#148; means any statute, law, ordinance, regulation, rule, code, injunction, ruling,
judgment, decree, enforcement policy, agreement or order of or with, as applicable, any
Governmental Authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Material Adverse Effect</U>&#148; means any event, change, occurrence or effect that (a)&nbsp;would
be (or could be reasonably expected to be) a materially adverse effect to the business, financial
condition or results of operations of the Business, taken as a whole; or (b)&nbsp;would prevent,
materially delay or materially impede the performance by the Seller of its obligations under this
Agreement or the Ancillary Agreements or the consummation of the transactions contemplated hereby
or thereby, other than any event, change, occurrence or effect resulting from (i)&nbsp;general changes
or developments in the industry in which the Business operates; (ii)&nbsp;changes in global, national or
regional political conditions (including the outbreak of war or acts of terrorism) or in general
economic, business, regulatory, political or market conditions or in national or global financial
markets; (iii)&nbsp;any actions required under this Agreement to obtain any approval or
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">authorization under applicable antitrust or competition Laws for the consummation of the
transaction; (iv)&nbsp;changes in any applicable Laws or applicable accounting regulations or principles
or interpretations thereof; (v)&nbsp;the announcement, pendency and performance of this Agreement and
the transactions contemplated hereby including compliance with the covenants set forth herein; (vi)
any action taken by the Seller which is required or permitted by or resulting from or arising in
connection with this Agreement; or (vii)&nbsp;any actions taken (or omitted to be taken) at the request
of the Buyer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Mexico Sale</U>&#148; means that certain proposed sale of finished goods utilizing Foreign Rod
to TPL De Mexico, S.A. De C.V. as discussed between the parties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Occupational Safety and Health Law</U>&#148; means any Law designed to provide safe and
healthful working conditions and to reduce occupational safety and health hazards, including the
Occupational Safety and Health Act, and any program, whether governmental or private (such as those
promulgated or sponsored by industry associations and insurance companies), designed to provide
safe and healthful working conditions.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Order</U>&#148; means any order, injunction, judgment, decree, ruling, assessment or
arbitration award of any Governmental Authority or arbitrator.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Permitted Encumbrance</U>&#148; means each of the following (i)&nbsp;statutory liens for current
Taxes not yet due and payable (or which may be paid without interest or penalties) or the validity
or amount of which is being contested in good faith by appropriate proceedings, (ii)&nbsp;to the extent
set forth on <U>Schedule&nbsp;1.2(a)</U>, mechanics&#146;, carriers&#146;, workers&#146;, repairers&#146; and other similar
liens arising or incurred in the ordinary course of business relating to obligations as to which
there is no default on the part of the Seller for a period greater than sixty (60)&nbsp;days, or the
validity or amount of which is being contested in good faith by appropriate proceedings, or
pledges, deposits or other liens securing the performance of bids, trade contracts, leases or
statutory obligations (including workers&#146; compensation, unemployment insurance or other social
security legislation); <U>provided</U>, that with respect to Owned Real Property and Leased Real
Property, the term &#147;Permitted Encumbrance&#148; shall mean (i)&nbsp;Encumbrances specifically set forth on
<U>Schedule&nbsp;1.2(b)</U>, (ii)&nbsp;statutory liens for current Taxes not yet due and payable
(or which may be paid without interest or penalties), entitlements, covenants, restrictions,
zonings and other land use and environmental regulations by Governmental Authorities, (iii)&nbsp;all
recorded exceptions, restrictions, easements, imperfections of title, charges, rights-of-way, and
encroachments, and (iv)&nbsp;all matters which would be shown by a current and accurate survey of the
Owned Real Property or the Leased Real Property that do not materially and adversely interfere with
the present use of the Owned Real Property or the Leased Real Property or the Business conducted
thereon.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Person</U>&#148; means an individual, corporation, partnership, limited liability company,
limited liability partnership, syndicate, person, trust, association, organization or other entity,
including any Governmental Authority, and including any successor, by merger or otherwise, of any
of the foregoing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Pilot Steel Facility</U>&#148; means that separate facility of the Seller located at 1950 W.
Copans Road, Pompano Beach, Florida.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Protocol Agreement</U>&#148; means that certain Protocol Agreement in substantially the form
attached hereto as Exhibit&nbsp;K between the Buyer and the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Real Estate Documents</U>&#148; means the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;A General Warranty Deed (or local equivalent) for all of the Owned Real Property, duly
executed, acknowledged and delivered in recordable form by the Seller conveying to the Buyer title
to the Owned Real Property in accordance with the provisions of this Agreement, subject only to the
Permitted Encumbrances. Each General Warranty Deed shall be in the form of, and upon the terms
contained in, <U>Exhibit&nbsp;D</U>, as adjusted for the applicable state;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Any and all owner/seller title affidavits and lien affidavits as are reasonably required
by First American Title Insurance Company (&#147;<U>Title Company</U>&#148;) in the form attached as
<U>Exhibit&nbsp;E</U>;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Any and all transfer tax declarations, declarations of value, consideration affidavits, or
affidavits of residence as may be required by the Title Company and/or applicable recorders&#146;
offices to record any General Warranty Deed; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Such resolutions, authorizations, certificates and/or other entity documents relating to
the Seller as are reasonably required by the Buyer and/or the Title Company in connection with the
transactions contemplated under this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Release</U>&#148; means any release, spill, emission, leaking, pumping, pouring, dumping,
emptying, injection, deposit, disposal, discharge, dispersal, leaching or migration on or into the
Environment or into or out of any property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Relevant Locations</U>&#148; means the St. Joseph Facility, the Jacksonville Facility, the
Hazleton Facility, the Kingman Facility and the Aldine Facility.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Remedial Action</U>&#148; means all actions, including any capital expenditures, (a)&nbsp;to clean
up, remove, treat or in any other way address any Hazardous Material or other substance; (b)&nbsp;to
prevent the Release or Threat of Release or to minimize the further Release of any Hazardous
Material or other substance so it does not migrate or endanger or threaten to endanger public
health or welfare or the Environment; (c)&nbsp;to perform pre-remedial studies and investigations or
post-remedial monitoring and care; or (d)&nbsp;to bring all Transferred Assets and the operations
conducted thereon into compliance with Environmental Laws and environmental Governmental
Authorizations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Representatives</U>&#148; means, with respect to any Person, the officers, directors,
employees, agents, accountants, advisors, bankers and other representatives of such Person.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>St. Joseph Facility</U>&#148; means that separate facility of the Seller located at 810
Atchison St, St. Joseph, Missouri 64503.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Steeltex Inventory</U>&#148; means the Steeltex finished goods, galvanized wire and zinc and
Steeltex paper.
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Tampa Facility</U>&#148; means that separate facility of the Seller located at 2835 Overpass
Road, Tampa, Florida 33619.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Taxes</U>&#148; means any and all taxes of any kind, whether imposed directly, through
withholding, or otherwise, including without limitation income, profits, receipts, margin,
franchise, license, sales, use, privilege, commercial activity, occupation, occupancy, property,
severance, communications, excise, value added, environmental, employment, social or employment
security, worker&#146;s compensation and other taxes, unclaimed property and other assessments, duties,
fees and imposts (together with any and all interest, penalties, additions thereon and additional
amounts imposed with respect thereto) imposed by any Governmental Authority.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Threat of Release</U>&#148; means a reasonable likelihood of a Release that may require action
in order to prevent or mitigate damage to the Environment that may result from such Release.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Transition Services Agreement</U>&#148; means the transition services agreement substantially
in the form attached hereto as <U>Exhibit&nbsp;F</U> between the Buyer and the Seller or its relevant
Affiliate setting out the terms of certain services to be provided by the Seller or its relevant
Affiliate to the Buyer post-Closing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;1.2 <U>Table of Definitions</U>. The following terms have the meanings set forth in the Sections
referenced below:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Definition</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Location</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Actual Current Liabilities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(d)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Actual Working Capital </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Adjustment Statement </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(f)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Agreement </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Alleged Obsolete Unit </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Alleged Obsolete Units Notice Schedule </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Allocation Schedule </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.9</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Assumed Liabilities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Audited Financial Statements </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basket Amount </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4(b)(iii)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Books and Records </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(h)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Recitals</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business Patents </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.21(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business Permits </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(g)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business Registered Copyrights </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.21(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business Registered IP </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.21(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Business Registered Marks </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.21(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buyer </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buyer Employee Plans </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buyer Indemnified Parties </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buyer Savings Plan </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Buyer&#146;s Value </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8(a)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Definition</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Location</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cleanup </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closing </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.6</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closing Date </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.6</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Closing Date Payment </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.5(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">COBRA Obligations </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1(g)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Confidentiality Agreement </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.2</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Copyright Registrations </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(k)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Core Reps </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4(b)(iii)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Disclosure Schedules </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Article III</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Effective Time </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.6</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Engagement Letter </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9(d)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excluded Assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excluded Contracts </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2(k)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excluded Inventory </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2(m)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excluded Liabilities </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.4</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Excluded Purchase Orders </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2(l)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statement Deadline </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Financial Statements </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.7</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Finished Goods Credit </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Houston Aldine Property Sublease </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.5(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indemnified Party </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Indemnifying Party </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Independent Accountants </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(g)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intellectual Property </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(k)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Inventions </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(k)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Leased Real Property </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.11(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Losses </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Marks </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(k)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Minimum Loss Amount </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.4(b)(iii)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notice of Disagreement </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(g)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Financial Materials </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Owned Real Property </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.11(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Parent </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Patents </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(k)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Pre Close Default </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.3(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Production Equipment </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">3.6</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase Price </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(h)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Purchase Price Reduction </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Receivables </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.2(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">SEC </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Seller </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Preamble</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Seller Indemnified Parties </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.2</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Seller Note </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.5(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Seller Savings Plan </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Seller&#146;s Value </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.8(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Severance Cap </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1(b)(ii)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->9<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Definition</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Location</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Sundry Payables </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.4(o)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tampa Assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tampa Welding Production Assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Tangible Personal Property </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(d)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Target Working Capital </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Party Claim </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">8.3(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Title Company </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">1.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trade Secrets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(k)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Trademark Registrations </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(k)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transfer Taxes </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6.2</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transferred Assets </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transferred Assets Auditor </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.9(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transferred Contracts </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transferred Employee </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1(a)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transferred Inventory </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(f)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transferred Inventory Value </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Transferred Purchase Orders </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">transition period </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5.1(d)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unit Count </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(e)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Unit Inventory Schedule </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.7(c)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">WARN Act </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.4(b)</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Works of Authorship </DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2.1(k)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE II<BR>
PURCHASE AND SALE</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.1 <U>Purchase and Sale of Assets</U>. Upon the terms and subject to the conditions of this
Agreement, at the Closing and effective as of the Effective Time, the Seller shall sell, assign,
transfer, convey and deliver to the Buyer all of the Transferred Assets, and the Buyer shall
purchase, acquire, accept and pay for the Transferred Assets free and clear of any Encumbrances
(other than Permitted Encumbrances) and assume the Assumed Liabilities. &#147;<U>Transferred
Assets</U>&#148; shall mean all the following assets, properties and rights referred to below (wherever
located), whether tangible or intangible (other than the Excluded Assets):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all contracts and agreements that are specifically listed or described on <U>Schedule
2.1(a)</U> (the &#147;<U>Transferred Contracts</U>&#148;), <U>provided</U>, <U>however</U>, that the
Transferred Contracts described on Schedule&nbsp;3.3 shall be transferred to and assumed by the Buyer
only upon receipt by the Seller of any required consents;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all purchase orders listed or described on <U>Schedule&nbsp;2.1(b)</U> outstanding as of
November&nbsp;17, 2010 and all purchase orders that arise after November&nbsp;17, 2010 and prior to the
Effective Time in the ordinary course of business consistent with past practice (the
&#147;<U>Transferred Purchase Orders</U>&#148;); <U>provided</U>, that, except as approved in writing by
the Buyer, the Transferred Purchase
Orders shall <U>not</U> include: (i)&nbsp;purchase orders creating obligations extending beyond
December&nbsp;31, 2010, (ii)&nbsp;purchase orders
</DIV>



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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">representing commitments to sell more than one hundred (100)&nbsp;tons of inventory; or (iii)
purchase orders with respect to the Seller&#146;s purchase of wire, rod and finished goods inventory,
except, in each case, to the extent set forth on <U>Schedule&nbsp;2.1(b)</U>;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all Owned Real Property and other interests in real property listed on <U>Schedule
3.11(a)</U>, together in each case with the Seller&#146;s right, title and interest in and to all
structures, facilities or Improvements located thereon and all easements, licenses, rights and
appurtenances relating to the foregoing;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all machinery, equipment, furniture, furnishings, parts, spare parts, vehicles, tools,
office equipment and other tangible personal property owned, used or leased by the Seller and used
or held for use in the Business at the Relevant Locations (including any such items held by
Business Employees (employed at the Relevant Locations) and used in the performance of their
duties)) including the items listed on <U>Schedule&nbsp;2.1(d)</U> (the &#147;<U>Tangible Personal
Property</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the welding production line and associated equipment located at the Tampa Facility (the
&#147;<U>Tampa Welding Production Assets</U>&#148;) and certain other assets at the Tampa Facility listed on
<U>Schedule&nbsp;2.1(e)</U> (collectively, the &#147;<U>Tampa Assets</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;all raw materials inventories, work-in-progress, finished goods inventories, supplies,
packaging materials and other inventories used or held for use in the Business at the Relevant
Locations, together with those assets used or held for use at such other locations as described on
<U>Schedule&nbsp;2.1(f)</U> (the &#147;<U>Transferred Inventory</U>&#148;), except for the Excluded Inventory;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;all registrations, permits and licenses used or held for use in the Business at the
Relevant Locations to the extent transferrable (the &#147;<U>Business Permits</U>&#148;), excluding the
Aldine Facility;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;to the extent permitted by Law, all books of account, financial and accounting, files,
invoices, customers&#146; and suppliers&#146; lists, billing records and personnel records (but only with
respect to any Transferred Employees), including all documentation with respect to Transferred
Employees necessary to enable compliance with statutory requirements as provided by 8 CFR
&#167;274a.2(b)(1)(viii)(A)(7)(ii), to the extent relating to the Transferred Assets or Assumed
Liabilities (the &#147;<U>Books and Records</U>&#148;) but excluding such items to the extent they relate
exclusively to the Excluded Assets and Excluded Liabilities; <U>provided</U> that the Seller or
its Affiliates may retain a copy of any Books and Records for archival purposes as well as for
purposes related to any other business of the Seller or its Affiliates to which such records
relate;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;all credits, prepaid expenses and security deposits to the extent relating to the Business
at the Relevant Locations (except the security deposit with respect to the Aldine Lease deposited
by the Seller&#146;s Affiliate);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;all rights to causes of action, lawsuits, judgments, claims and demands of any nature,
known or unknown, contingent or non-contingent, in favor of the Seller to the extent relating
exclusively to the Business, the Assumed Liabilities or the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Transferred Assets prior to the
Closing, including all rights under all guarantees, warranties, indemnities and similar rights in
favor of the Seller; <U>provided</U> that this does not include any of the Seller&#146;s or its
Affiliates&#146; &#147;self-insurance&#148; or &#147;captive insurance&#148; policies or proceeds or any other rights or
claims against the Seller or any of its Affiliates;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;all of the intellectual properties and intellectual property rights to the extent that
these are owned, licensed or used by the Seller in connection with the Business including, without
limitation: (i)&nbsp;all actual and potential trademarks, service marks, trade names, logos and other
designations including, without limitation, all of the Seller&#146;s right to use the names &#147;Ivy Steel &#038;
Wire,&#148; &#147;Steeltex&#148; (subject to Section&nbsp;5.3(b) with respect to Steeltex Inventory) and &#147;Varigrid&#148;
(collectively, the &#147;<U>Marks</U>&#148;) and all United States, foreign and state registrations and
applications for registration relating to the Marks (the &#147;<U>Trademark Registrations</U>&#148;); (ii)
all works of authorship (the &#147;<U>Works of Authorship</U>&#148;) and all United States, foreign and
state copyright registrations and applications for registration relating to the Works of Authorship
(the &#147;<U>Copyright Registrations</U>&#148;); (iii)&nbsp;all patented or patentable inventions (the
&#147;<U>Inventions</U>&#148;) and all United States and foreign patents and applications for patent
relating thereto (the &#147;<U>Patents</U>&#148;); and (iv)&nbsp;all confidential or proprietary processes,
inventions patentable or not, formulas, technical data and other similar information and
technologies that are of commercial value to the Business (the &#147;<U>Trade Secrets</U>&#148;) (the Marks,
the Trademark Registrations, the Works of Authorship, the Copyright Registrations, the Inventions,
the Patents and the Trade Secrets being referred to collectively herein as the &#147;<U>Intellectual
Property</U>&#148;), together with all goodwill related to the Intellectual Property, rights to sue for
infringement, and any royalty and other income from or related to the Intellectual Property
accruing after the Closing Date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;all other intangible assets of any kind or description, wherever located, which are
carried on the books of the Business or which are owned or used by the Seller to the extent used in
or relating to the operations of the Business; <U>provided</U> that to the extent that such
intangible assets are also used in the Seller&#146;s or its Affiliates businesses Seller and its
Affiliates are hereby granted a nonexclusive license to use same;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;any and all of the Seller&#146;s goodwill in and any going concern value of the Business; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;Notwithstanding the foregoing: (i)&nbsp;the transfer of the Transferred Assets pursuant to this
Agreement shall not include the assumption of any liability or other obligation related to the
Transferred Assets unless the Buyer expressly assumes that liability or other obligation pursuant
to Section&nbsp;2.3; and (ii)&nbsp;for purposes of Section&nbsp;3.18 and Section&nbsp;8.8, the term &#147;Transferred
Assets&#148; shall include the Buyer&#146;s sublease interest in the Aldine Facility pursuant to the Houston
Aldine Property Lease.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.2 <U>Excluded Assets</U>. Notwithstanding anything contained in Section&nbsp;2.1 to the contrary,
the Seller is not selling, and the Buyer is not purchasing, any assets other than those
specifically listed or described in Section&nbsp;2.1, and without limiting the generality of the
foregoing, the term &#147;Transferred Assets&#148; shall expressly exclude the following assets of the
Seller, all of which shall be retained by the Seller (collectively, the &#147;<U>Excluded Assets</U>&#148;):
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all of the Seller&#146;s cash and cash equivalents;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;all accounts receivable, notes receivable, supplier rebate receivables and other similar
receivables due to the Seller that arise out of the operation of the Business prior to the Closing
Date (the &#147;<U>Receivables</U>&#148;), together with any unpaid interest or fees accrued thereon or
other amounts due with respect thereto;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the Seller&#146;s corporate books and records of internal corporate proceedings, Tax records,
work papers and books and records that the Seller is required by Law to retain;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;the Intellectual Property other than the Intellectual Property described on <U>Schedule
2.1(k)</U> including the following names and marks and any variation or derivation thereof: &#147;MMI&#148;,
&#147;Oldcastle&#148; and &#147;Pilot Steel&#148;;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;all of the Seller&#146;s bank accounts;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;all accounting records (including records relating to Taxes) and internal reports relating
to the business activities of the Seller or any of its Affiliates that are not Transferred Assets;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;any interest in or right to any refund of Taxes relating to the Business, the Transferred
Assets or the Assumed Liabilities for, or applicable to, any taxable period (or portion thereof)
ending on or prior to the Closing Date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;any insurance policies and rights, claims or causes of action thereunder (but only to the
extent not included in Transferred Assets pursuant to Section&nbsp;2.1(j));
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;any assets relating to any Employee Plan;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;all rights, claims and causes of action relating to any Excluded Asset or any Excluded
Liability;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;all rights under contracts and arrangements other than the Transferred Contracts,
including those set forth on <U>Schedule&nbsp;2.2(k)</U> (the &#147;<U>Excluded Contracts</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;all rights under purchase orders other than the Transferred Purchase Orders, including
those set forth on <U>Schedule&nbsp;2.2(l</U>) (the &#147;<U>Excluded Purchase Orders</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;all the raw materials inventories, work-in-progress, finished goods inventories, supplies,
packaging materials and other inventories owned by the Seller listed or described on <U>Schedule
2.2(m)</U> and the Foreign Rod (&#147;<U>Excluded Inventory</U>&#148;);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;the Tampa Facility real estate, all real property leases with respect to the Tampa
Facility and all assets of the Seller located at the Tampa Facility other than the Tampa Assets;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;the Houston Clinton Facility, all real property with respect to the Houston Clinton
Facility and all assets of the Seller located at such facility;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;the Aldine Facility real estate, all real property leases with respect to such facility,
all Improvements in such facility and all assets expressly being leased by the Seller pursuant to
the Aldine Lease (excluding assets of the Seller located at such facility);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)&nbsp;the Pilot Steel Facility, all real property leases with respect to the Pilot Steel
Facility and all the assets and working capital of the Seller relating exclusively to the Seller&#146;s
operations located at the Pilot Steel Facility;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r)&nbsp;all performance evaluations or similar records relating to the Business Employees;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s)&nbsp;all rights of the Seller to the assets listed in <U>Schedule&nbsp;2.2(s)</U>;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t)&nbsp;the security deposit with respect to the Aldine Lease deposited with the lessor of such
lease by the Seller&#146;s Affiliate; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u)&nbsp;all rights of the Seller under this Agreement and the Ancillary Agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.3 <U>Assumed Liabilities</U>. The Transferred Assets shall be sold and conveyed to the Buyer
free and clear of all Encumbrances whatsoever (other than Permitted Encumbrances);
<U>provided</U>, <U>however</U>, that the Buyer assumes at Closing the obligations of the Seller
described below (the &#147;<U>Assumed Liabilities</U>&#148;). The Buyer shall in no event assume or be
liable for any liability or obligation of the Seller not specifically assumed pursuant to this
Section&nbsp;2.3, and the Seller shall retain responsibility for all liabilities and obligations with
respect to it, whether or not accrued and whether or not disclosed. Specifically, but without
limiting the generality of the foregoing, the Buyer shall not assume any liability or obligation of
the Seller in respect to the use, storage, presence, transportation, discharge, handling or
disposal of any Hazardous Material prior to the Closing Date, any liability with respect to product
liability and negligence claims and liabilities for refunds, adjustments, allowances, repairs,
exchanges, returns and warranty or similar claims arising out of actions taken or omitted to
be taken on or prior to the Closing Date, any liability with respect to workers&#146; compensation
claims or any Domestic Content Liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Assumed Liabilities shall consist exclusively of the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;trade accounts payable incurred in the ordinary course of business consistent with past
practice including the Book Accounts Payable (other than a trade account payable to an Affiliate of
the Seller and other than Sundry Payables) that remains unpaid as of the Effective Time;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any Taxes to be paid by the Buyer pursuant to Article&nbsp;VI;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all liabilities arising after the Effective Time under the Transferred Contracts, the
Transferred Purchase Orders and the Business Permits, to the extent assignment thereof is not
prohibited (other than a liability arising out of or relating to (the following a &#147;<U>Pre Close
Default</U>&#148;) (i)&nbsp;a breach that occurred prior to the Closing Date or (ii)&nbsp;an action taken by the
Seller or failure to act by the Seller prior to the Closing Date that is not timely or in
accordance with such Transferred Contracts, Transferred Purchase Orders or Business Permits); and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;all accrued vacation/paid time-off of Transferred Employees, as shown on <U>Schedule
2.3(d)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.4 <U>Excluded Liabilities</U>. Notwithstanding any other provision of this Agreement to the
contrary, the Buyer is not assuming and the Seller shall retain the sole responsibility of and
shall pay, perform or otherwise satisfy, all liabilities of the Seller other than the Assumed
Liabilities (the &#147;<U>Excluded Liabilities</U>&#148;), including without limitation the following:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;all liabilities for Taxes, including all Taxes arising from or with respect to the
Transferred Assets or the operation of the Business that are incurred in or attributable to any
period, or any portion of any period, ending on or before the Effective Time (except as otherwise
provided in Article&nbsp;VI), any Taxes that arise as a result of the sale of the Transferred Assets
pursuant to this Agreement (except as otherwise provided in Article&nbsp;VI), and any other Taxes to be
paid by the Seller pursuant to Article&nbsp;VI;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;except as specified in Section&nbsp;2.3(d), all liabilities relating to the Business Employees,
including (i)&nbsp;subject to Section&nbsp;5.1(b), any severance obligations; (ii)&nbsp;bonuses and incentive
compensation to the extent related to services performed in the period prior to the Effective Time;
(iii)&nbsp;sick leave; (iv)&nbsp;all workers&#146; compensation liabilities to the extent related to an injury
incurred by a Business Employee before the Effective Time; and (v)&nbsp;subject to Section&nbsp;5.1(e), all
obligations and liabilities under the Worker Adjustment Retraining and Notification Act and any
similar state or local law (the &#147;<U>WARN Act</U>&#148;) (provided that, for the avoidance of doubt,
Buyer shall be solely responsible for any liabilities incurred with respect to Transferred
Employees after the Effective Time);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;all liabilities arising prior to the Effective Time under the Transferred Contracts, the
Transferred Purchase Orders and the Business Permits to the extent assignment thereof is not
prohibited (other than any liability arising out of a Pre Close Default);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any liabilities arising under the Employee Plans;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any indebtedness for borrowed money or guarantees thereof outstanding as of the Effective
Time, other than current accounts payable (which are Assumed Liabilities pursuant to Section
2.3(a));
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;any Environmental, Health and Safety Liabilities arising out of or with respect to the
Seller or the Owned Real Property prior to the Effective Time;
</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;all liabilities owed to any Affiliates of the Seller;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;all liabilities in respect of products manufactured, marketed, distributed or sold by the
Seller before the Effective Time, including product liability and negligence claims and liabilities
for refunds, adjustments, allowances, repairs, exchanges, returns and warranty or similar claims;
<U>provided</U>, that the Buyer retains all liabilities to the extent arising out of its actions
or inactions after the Effective Time that cause any such liabilities;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;liabilities arising out of any litigation or other proceeding pending as of the Effective
Time or commenced after the Effective Time to the extent it relates to matters that occurred prior
to the Effective Time;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;any liability arising out of or resulting from the Seller&#146;s compliance or non-compliance
with any Law or Order of any Governmental Authority (including, without limitation Environmental,
Health and Safety Liabilities and Domestic Content Liabilities);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;any liabilities arising out of the ownership or operation of the Transferred Assets or the
Business prior to the Effective Time (other than the Assumed Liabilities);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;any liability of Seller based upon Seller&#146;s acts or omissions occurring after the
Effective Time;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;any liability of the Seller under this Agreement or any other document executed in
connection with the transactions contemplated by this Agreement, including without limitation the
Ancillary Agreements;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;any liability or obligation relating to an Excluded Asset; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;all &#147;<U>Sundry Payables</U>&#148; as defined on <U>Schedule&nbsp;2.4(o)</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.5 <U>Consideration</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;As consideration for the sale, assignment, transfer, conveyance and delivery of the
Transferred Assets to the Buyer, at the Closing, the Buyer shall (i)&nbsp;pay to the Seller, by wire
transfer to a bank account designated in writing by the Seller to the Buyer an amount equal to
$37.588&nbsp;million (the &#147;<U>Closing Date Payment</U>&#148;) in immediately available funds in United
States dollars; (ii)&nbsp;deliver to the Seller the note, substantially in the form attached hereto as
<U>Exhibit&nbsp;G</U> (the &#147;<U>Seller Note</U>&#148;) in the aggregate principal amount of $13.5&nbsp;million;
and (iii)&nbsp;assume the Assumed Liabilities. The aggregate consideration hereunder will be adjusted
first by the working capital adjustment and then by the inventory adjustment in accordance with
Sections&nbsp;2.7 and 2.8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Buyer and the Seller shall execute and deliver a sublease with respect to that
property known as the &#147;Houston Aldine Property&#148; in substantially the form set forth as <U>Exhibit
H</U> hereto (the &#147;<U>Houston Aldine Property Sublease</U>&#148;).
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;If, on or prior to March&nbsp;31, 2011, the Buyer sells for scrap the Tampa Welding Production
Assets then, in addition to the Purchase Price, the Buyer shall pay the Seller the actual proceeds,
net of the Buyer&#146;s expenses (and net of any Transfer Taxes, but without modifying the allocation of
ultimate responsibility therefor under Article&nbsp;VI), from such sale. Whether the Tampa Welding
Production Assets are sold, and the terms and conditions of any such sale, shall be in the Buyer&#146;s
sole discretion. Whether or not the Buyer sells the Tampa Welding Production Assets on or prior to
March&nbsp;31, 2011, the Buyer shall promptly (or in any event by March&nbsp;31, 2011) remove the Tampa
Assets from the Tampa Facility and if the Buyer fails to do so, Seller may do so at the Buyer&#146;s
expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Buyer will remove the Transferred Inventory held by the Seller at the Houston Port
facility within sixty (60)&nbsp;days after the Closing at the Buyer&#146;s expense. The Buyer shall be
permitted to store the Transferred Inventory at such facility during such 60-day period without
cost.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Buyer will store the Foreign Rod for the Seller where located as of Closing at the
Relevant Locations at no charge to the Seller for six (6)&nbsp;months immediately following the Closing.
The Buyer will use commercially reasonable efforts to cooperate with the Seller to complete the
Mexico Sale. If the Mexico Sale is completed by the Seller, the Seller will handle the invoicing
and order processing and, so long as the styles of mesh sold in the Mexico Sale are consistent with
the Buyer&#146;s production capabilities at such time, the Buyer will convert the Foreign Rod to
finished product at one of the Buyer&#146;s manufacturing facilities in Texas, which may or may not be a
Relevant Location acquired from the Seller. The Seller shall reimburse the Buyer for its
manufacturing costs incurred in such conversion and the out of pocket freight costs, if any,
incurred by the Buyer in order to ship such Foreign Rod inventory from its location at Closing to
the Buyer&#146;s manufacturing facility in Texas. The Seller will arrange for the customer in the
Mexico Sale to pick up the finished goods FOB the Buyer&#146;s applicable
Texas manufacturing facility, and the Seller shall collect the purchase price therefor, or if
the purchase price is paid to the Buyer, the Buyer shall pay it over to the Seller. Further, if
the Seller does not complete the Mexico Sale, then it may provide for the liquidation of such
inventory by sale to third parties, and the Buyer, at the Seller&#146;s expense, will exercise
commercially reasonable efforts for a period of no more than six (6)&nbsp;months to cooperate with the
Seller in such efforts. Proceeds from such liquidation shall be received by or paid to the Seller.
If the Mexico Sale or liquidation has not occurred within the six-month period immediately
following the Closing, the Seller shall promptly remove the Foreign Rod from the Buyer&#146;s facility,
and if the Seller fails to do so, the Buyer may do so at the Seller&#146;s expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.6 <U>Closing</U>. The sale and purchase of the Transferred Assets and the assumption of the
Assumed Liabilities contemplated by this Agreement shall take place at a closing (the
&#147;<U>Closing</U>&#148;) to be held at the offices of Womble Carlyle Sandridge &#038; Rice, PLLC, in
Winston-Salem, North Carolina, at 10:00&nbsp;a.m. Eastern time on the date hereof, which is referred to
as the &#147;<U>Closing Date</U>&#148; or as otherwise mutually agreed to by the parties. For purposes of
passage of title and risk of loss, allocation of expenses, adjustments and other economic or
financial effects of the transactions contemplated
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">hereby, the Closing when completed shall be
deemed to have occurred at 11:59&nbsp;p.m., local time, on the Closing Date (the &#147;<U>Effective
Time</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.7 <U>Post-Closing Adjustment</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The &#147;<U>Target Working Capital</U>&#148; is $18,679,394.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The &#147;<U>Actual Working Capital</U>&#148; shall be the excess of the Transferred Inventory
Value over the Actual Current Liabilities.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The &#147;<U>Transferred Inventory Value</U>&#148; shall be the aggregate value of the Transferred
Inventory calculated based on the Unit Count valued at the value per unit of Transferred Inventory
in accordance with the inventory valuation schedule attached hereto on <U>Schedule&nbsp;2.7</U> (the
&#147;<U>Unit Valuation Schedule</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The &#147;<U>Actual Current Liabilities</U>&#148; shall consist of all of the liabilities referred
to in Section&nbsp;2.3(a) that are Assumed Liabilities as of the Closing Date accounted for in
accordance with IFRS.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;No later than 5:00 pm on November&nbsp;22, 2010, the Buyer and the Seller will conduct and
agree upon the results of a physical count of the number and type of units of Transferred Inventory
as of November&nbsp;22, 2010 (the &#147;<U>Unit Count</U>&#148;) and calculate and agree upon the resulting
Transferred Inventory Value. All units of Transferred Inventory shall be included in the Unit
Count and valued at the value set forth on the Unit Valuation Schedule whether or not such unit(s)
are usable,
saleable or otherwise of a nature that would (or would not) cause them to be categorized as
Alleged Obsolete Units.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The Actual Current Liabilities as of the Closing shall be calculated by the Buyer after
the Closing in accordance with the Seller&#146;s past practice. The Buyer shall also calculate the
Actual Working Capital based on (i)&nbsp;the Transferred Inventory Value as agreed by the Buyer and the
Seller on November&nbsp;22, 2010 and (ii)&nbsp;the Buyer&#146;s calculation of the Actual Current Liabilities.
The Buyer&#146;s calculation of such amounts (the &#147;<U>Adjustment Statement</U>&#148;) shall be delivered by
the Buyer to the Seller as soon as practicable following the Closing Date, but not later than
thirty (30)&nbsp;days thereafter. The Representatives of the Seller shall have the right at the
Seller&#146;s cost and expense to participate with the Representatives of the Buyer in the process of
preparing the Adjustment Statement and shall (subject to confidentiality restrictions) have access
to all data, schedules and work papers used by the Buyer in preparing the Adjustment Statement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The determination of Actual Working Capital shall become final and binding upon the
parties on the 30th day following receipt of the Adjustment Statement by the Seller unless the
Seller delivers written notice of its disagreement (&#147;<U>Notice of Disagreement</U>&#148;) to the Buyer
prior to such date. Any Notice of Disagreement shall specify the amounts set forth on the
Adjustment Statement with which the Seller disagrees. If a Notice of Disagreement is sent by the
Seller, then the Actual Working Capital (as recalculated in accordance with this section) shall
become final and binding upon the parties on the earlier of (x)&nbsp;the date the parties hereto resolve
in writing any differences
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">they have with respect to any matter specified in the Notice of
Disagreement or (y)&nbsp;the date any disputed amounts are finally determined in accordance with the
balance of this paragraph. During the 30-day period following the delivery of a Notice of
Disagreement, the Seller and the Buyer shall seek in good faith to resolve in writing any
differences which they may have with respect to any amount specified in the Notice of Disagreement
or identified by the Buyer during said 30-day period. If, at the end of such 30-day period, the
Seller and the Buyer have not reached agreement on such amounts, the amounts which remain in
dispute shall be recalculated by an accounting firm mutually agreed upon by the Seller and the
Buyer (the &#147;<U>Independent Accountants</U>&#148;). The Independent Accountants shall make a ratable
allocation to each of the Seller and the Buyer of their charges for such work as a part of their
determination, based on the proportion by which the amount in dispute was determined in favor of
one party or the other. Any amounts so recalculated shall be final and binding on the parties.
Neither the Buyer nor the Seller shall be permitted to dispute the Transferred Inventory Value as
agreed based on the Unit Count and the Unit Valuation Schedule.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;If the Actual Working Capital is less than the amount of the Target Working Capital, then
the Seller shall promptly deliver to the Buyer the amount of such shortfall. If the Actual Working
Capital is greater than the amount of the Target Working Capital, then the Buyer shall promptly
deliver to the Seller the amount of such excess. The Closing Date Payment as so adjusted plus the
original principal amount of the Seller Note shall be the &#147;<U>Purchase Price</U>&#148;.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.8 <U>Post Closing Inventory Representation Adjustment</U>.<U></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;If after Closing, the Buyer in good faith concludes that one or more specifically
identified units of Transferred Inventory were recorded on the books and records of the Seller as
of the Closing at a value in excess of the value that such units should have been recorded in
accordance with IFRS, net of applicable reserves, consistent with the Seller&#146;s past practice,
because such unit or units can be accurately described by one of the categories set forth below
(each such Unit an &#147;<U>Alleged Obsolete Unit</U>&#148;):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Any pipe mesh and engineered structural mesh produced from imported wire rod for which no
customer purchase commitment exists;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Any product in inventory that is over three hundred and sixty (360)&nbsp;days old;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;Any wire or mesh products that do not meet applicable ASTM specifications;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Any pipe mesh products of random lengths not ordered by a customer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;Any pipe mesh products with telescoped centers (measured on the side of the roll from
which the center protrudes starting from the inside wrap on the mandrel) exceeding four (4)&nbsp;inches
as measured from the outside edge of the innermost
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">overhang or longitudinal wire, as the case may
be, to the outside edge of the outer most overhang or longitudinal wire; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;Any finished goods quantities by SKU that exceed the previous twelve (12)&nbsp;months
shipments for which there is no customer commitment to purchase, written or verbal, as of the
Closing Date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;Any customer-specific finished goods SKUs which the customer has discontinued ordering
as of the Closing Date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;Any domestic work in process that is not traceable by size, grade, and rod source;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">then within sixty (60)&nbsp;days after the Closing Date, the Buyer shall deliver to the Seller a
schedule (the &#147;<U>Alleged Obsolete Units Notice Schedule</U>&#148;) setting forth: (a)&nbsp;the specifically
identified Alleged Obsolete Unit; (b)&nbsp;the category in (i) &#151; (viii)&nbsp;above in which such unit is
properly categorized in the Buyer&#146;s view; and (c)&nbsp;the dollar amount by which the Buyer&#146;s
calculation of the correct value calculated in accordance with IFRS (&#147;<U>Buyer&#146;s Value</U>&#148;) is
below the value of such identified Alleged Obsolete Unit on the Seller&#146;s books and records
(&#147;<U>Seller&#146;s Value</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Buyer and the Seller will negotiate in good faith to resolve any disagreements with
respect to the proper valuation of the Alleged Obsolete Units for 15&nbsp;days after the Seller&#146;s
receipt of the Alleged Obsolete Units Notice Schedule. If, after such period, the parties do not
agree on any adjustment to the price to be made with respect to one or more Alleged Obsolete Units
that falls within one or more of the categories (i)-(viii), then with respect to one or more of
such Units, the Seller may either: (i)&nbsp;pay to the Buyer the excess of Seller&#146;s Value over Buyer&#146;s
Value or (ii)&nbsp;purchase such Alleged Obsolete Unit from the Buyer at Seller&#146;s Value and then
liquidate such unit with the Buyer&#146;s cooperation, with the proceeds of such liquidation to be
received by or paid to Seller. The Buyer shall store any such unit purchased by the Seller on the
Buyer&#146;s premises at no cost for six (6)&nbsp;months immediately following the Closing and shall
cooperate (at no cost to the Buyer) with the Seller in liquidation of same. If the Seller fails to
remove any such unit(s) purchased the Seller from the Buyer&#146;s premises within six (6)&nbsp;months, the
Buyer may do so at the Seller&#146;s expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any finished good Transferred Inventory that are Alleged Obsolete Units,
the Seller shall have a credit of $100,000 (the &#147;<U>Finished Goods Credit</U>&#148;) that can be used
by the Seller to either (i)&nbsp;compensate the Buyer for the excess of Seller&#146;s Value over Buyer&#146;s
Value or (ii)&nbsp;purchase the Alleged Obsolete Units from the Buyer at Seller&#146;s Value and then
liquidate such units in accordance with Section&nbsp;2.8(b). The Seller may not use such credit with
respect to Alleged Obsolete Units, that are not finished goods inventory, <U>provided</U> however,
that for any and all Alleged Obsolete Units of any kind, including finished goods inventory, the
Seller may utilize the Basket Amount (to the extent available at a given time) as a credit to
compensate the Buyer in the same manner as the Finished Goods Credit. Any such utilization of the
Basket Amount shall
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">lower the amount of the Basket Amount available for other indemnity claims on a
dollar for dollar basis.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;None of such activities in this Section&nbsp;2.8, nor liquidation or sale of Foreign Rod
whether pursuant to the Mexico Sale or otherwise shall be a violation of the noncompete covenants
in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;In connection with the foregoing, and in order that the Transferred Inventory can be
accurately and efficiently counted, Buyer covenants and agrees that such inventory will remain in
place and not be moved, processed, transported, converted or otherwise disturbed, and there will be
no production, shipments in or shipments out until both Buyer and Seller agree that the count is
complete; provided however that on Friday November&nbsp;19, 2010, plant personnel can weigh drawn wire
and/or straight cut and segregate it from drawn wire and/or straight cut that is required for
production.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.9 <U>Allocation of Purchase Price for Tax Purposes</U>. The Seller and the Buyer agree that for tax
purposes only, the Purchase Price and the Assumed Liabilities (plus other relevant items) shall be
allocated among the Transferred Assets as provided on the allocation schedule (the &#147;<U>Allocation
Schedule</U>&#148;). A draft of the Allocation Schedule shall be prepared by the Buyer and delivered to
the Seller as soon as practicable following the Closing Date but not later than thirty (30)&nbsp;days
after the date the Post-Closing Adjustment is established. If the Seller notifies the Buyer in
writing within ten (10)&nbsp;days of the date that the Buyer delivers the Allocation Schedule to the
Seller that the Seller objects to one or more items reflected in the Allocation Schedule, the
Seller and the Buyer shall negotiate in good faith to resolve such dispute; provided, however, that
if the Seller and the Buyer are unable to resolve any dispute with respect to the Allocation
Schedule within thirty (30)&nbsp;days, such dispute shall be resolved by an impartial nationally
recognized firm of independent certified public accountants acting as experts and not arbitrators.
The fees and expenses of such accounting firm shall be borne equally by the Seller and the Buyer.
The Buyer and the Seller shall file all Tax Returns (including amended returns and claims for
refund) and information reports in a manner consistent with the Allocation Schedule. Any
adjustments to the Purchase Price pursuant to this Agreement shall be allocated in a manner
consistent with the Allocation Schedule.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;2.10 <U>Proration of Certain Items</U>. With respect to certain expenses incurred in the
operation of the Business at the Relevant Locations, the following prorations shall be made:1
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Operating Expenses</U>. Subject to the specific provisions of this Agreement,
the Seller shall be responsible for all costs and expenses attributable to the operation of the
Business or the ownership of the Transferred Assets up to the Closing
</DIV>


<DIV align="left">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 18%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD width="96"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left"><SUP style="FONT-size: 85%; vertical-align: text-top">1</sup></TD>
    <TD>&nbsp;</TD>
    <TD>Parties to ensure proration is consistent with
working capital adjustment and transferred liabilities once working capital
adjustment is agreed.</TD>
</TR>

</TABLE>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Date, and the Buyer shall
become responsible for all costs and expenses attributable to ownership of the Transferred Assets
from and after the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Taxes</U>. Taxes shall be apportioned as set forth in Article&nbsp;VI.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Utilities</U>. Utilities, water and sewer charges shall be paid directly to the
obligee by the Seller and the Buyer based on meter readings as of the Closing Date at the
prevailing rates, if possible; otherwise such charges shall be apportioned based on the number of
operating days occurring before and after the Closing Date during the billing period for each such
charge.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Timing</U>. Appropriate cash payments by the Seller or the Buyer, as the case may
require, shall be made from time to time, as soon as practicable after the facts giving rise to the
obligation for such payments are known, to give effect to the prorations provided in this section.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE III<BR>
REPRESENTATIONS AND WARRANTIES<BR>
OF THE SELLER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in the Disclosure Schedules attached hereto (collectively, the
&#147;<U>Disclosure Schedules</U>&#148;), the Seller hereby represents and warrants to the Buyer as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.1 <U>Organization and Qualification</U>. The Seller is a corporation duly organized, validly
existing and in good standing under the laws of Delaware and has all necessary corporate power and
authority to own, lease and operate the Transferred Assets and to carry on the Business as it is
now being conducted. The Seller is duly qualified and licensed to do business, and is in good
standing, in each jurisdiction where the ownership or operation of the Transferred Assets or the
conduct or operation of the Business makes such qualification or licensing necessary, except, in
each case, for any such failures that would not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.2 <U>Authority</U>. The Seller has the corporate power and authority to execute and deliver
this Agreement and each of the Ancillary Agreements to which it will be a party, to perform its
obligations hereunder and thereunder and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance by the Seller of this Agreement and each of the
Ancillary Agreements to which it will be a party and the consummation by the Seller of the
transactions contemplated hereby and thereby have been duly and validly authorized by all necessary
corporate action. This Agreement has been, and upon their execution each of the Ancillary
Agreements to which the Seller will be a party will have been, duly executed and delivered by the
Seller. This Agreement constitutes, and upon their execution each of the Ancillary Agreements to
which the Seller will be a party will constitute, the legal, valid and binding obligations of the
Seller, enforceable against the Seller in accordance with their respective terms, except as
enforcement may be limited by applicable bankruptcy, insolvency, reorganization,
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">moratorium or
similar laws affecting creditors&#146; rights generally and by general principles of equity (regardless
of whether considered in a proceeding in equity or at law).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.3 <U>No Conflict; Required Filings and Consents.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The execution, delivery and performance by the Seller of this Agreement and each of the
Ancillary Agreements to which the Seller will be a party, and the consummation of the transactions
contemplated hereby and thereby, do not and will not:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;conflict with or violate the certificate of incorporation or bylaws of the Seller;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;conflict with or violate any Law applicable to the Seller, the Business or any of the
Transferred Assets or by which the Seller, the Business or any of the Transferred Assets may be
bound or affected; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;except as set forth on <U>Schedule&nbsp;3.3</U>, conflict with, result in any breach of,
constitute a default (or an event that, with notice or lapse of time or both, would become a
default) under, require any notice to or consent of any Person pursuant to, or give to others any
rights of termination, acceleration or cancellation of, any material contract or agreement;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">except, in the case of clause (ii)&nbsp;or (iii), for any such conflicts, violations, breaches, defaults
or other occurrences that would not, individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect or that arise as a result of any facts or circumstances relating to
the Buyer or any of its Affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Seller is not required to file, seek or obtain any notice, authorization, approval,
order, permit or consent of or with any Governmental Authority in connection with the execution,
delivery and performance by the Seller of this Agreement and each of the Ancillary Agreements to
which the Seller will be a party except where failure to obtain any consent, approval,
authorization or action, or to make any filing or notification, would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.4 <U>Transferred Assets</U>. This Agreement and the instruments and documents to be delivered
by the Seller to the Buyer at or following the Closing shall be adequate and sufficient to transfer
to the Buyer the Seller&#146;s entire right, title and interest in and to the Transferred Assets. The
Seller is not in the ordinary business of, and the Business does not involve and the Relevant
Locations are not used for, selling assets such as the Transferred Assets (other than inventory
sold in the ordinary course of business). Without limiting the foregoing, excluding any inventory
constituting a Transferred Asset, the Seller has not sold assets of a kind similar to the
Transferred Assets more than twice, nor for more than seven days, in any given twelve-month period.
None of the Transferred Assets (other than those Transferred Assets that have been booked by the
Seller as, and are being transferred to the Buyer as, inventory) were purchased by the Seller for
the original purposes of resale.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.5 <U>Books and Records</U>. The Seller has offered to make available to the Buyer upon the
Buyer&#146;s request, and as soon as practicable after the Closing the Seller will deliver to the Buyer,
true and complete copies of the books and records of the Seller that constitute Transferred Assets.
Except as forth on <U>Schedule&nbsp;3.5</U>, such books and records for the fiscal year ended December
26, 2009 and the interim period ended September&nbsp;25, 2010 are true, accurate and complete and have
been maintained in accordance with IFRS applied on a consistent basis. The Aldine Facility either
is separately accounted for as a separate division, branch or segment of the Business, or the
income and expenses of the Aldine Facility are segregable or separately ascertainable from the
books of account or records of the rest of the Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.6 <U>Title to and Sufficiency of Assets</U>. Except as set forth on <U>Schedule&nbsp;3.6</U>, the
Seller has good and marketable title to all of the Transferred Assets, free and clear of any
Encumbrances other than Permitted Encumbrances and the Encumbrances set forth on <U>Schedule
3.6</U>. With the exception of the Excluded Assets, the Transferred Assets constitute all of the
assets, tangible and intangible, of any nature whatsoever, that are owned, leased, used, or held
for use, by the Seller or an Affiliate of the Seller in the operation of the Business at the
Relevant Locations in the manner presently operated by the Seller. Except as set forth on
<U>Schedule&nbsp;3.6</U>, and except for Excluded Assets, Excluded Liabilities and assets used in the
delivery of services pursuant to the Transition Services Agreement, all assets and rights relating
to the Business that are owned by the Seller or any
of its Affiliates are owned or held by the Seller or such Affiliates. <U>Schedule&nbsp;2.1(d)</U>
sets forth all of the Production Equipment owned by the Seller and located at the Relevant
Locations. &#147;<U>Production Equipment</U>&#148; means the following types of equipment or machinery: (a)
wire drawing production equipment; (b)&nbsp;straight and cut equipment; and (c)&nbsp;welding lines. Seller
has not sold, retired, relocated, moved, conveyed, or otherwise transferred any Production
Equipment since August&nbsp;31, 2010. With the exception of the Tampa Welding Production Assets at the
Tampa Facility, the Transferred Assets comprise all of the tangible assets (i.e., not including
real estate and intangible assets) owned, leased, used, or held for use, by the Seller with respect
to any given Relevant Location, other than Excluded Inventory, and as such, the sale of the
Transferred Assets with respect to such Relevant Locations will represent a cessation of the
Seller&#146;s business at such Relevant Locations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.7 <U>Financial Statements</U>. The Seller has previously delivered to the Buyer true and
complete copies of (a)&nbsp;the statements of net assets of the Seller as of December&nbsp;26, 2009 and the
related statements of operations for the fiscal year then ended; (b)&nbsp;interim unaudited financial
reports prepared for the period from December&nbsp;27, 2009 through September&nbsp;25, 2010; and (c)&nbsp;monthly
statements of net assets, for the Business for the period from December&nbsp;27, 2009 through September
25, 2010 (collectively referred to as the &#147;<U>Financial Statements</U>&#148;). The Financial
Statements:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;are true, complete and correct;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;are in accordance with the books and records of the Seller;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;present fairly the assets, liabilities and financial condition of the Seller as of the
respective dates thereof, and the results of operations for the periods then ending; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;have been prepared in accordance with IFRS; except for such year-end and other adjustments
and footnotes as would be required by an audit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Except as set forth on <U>Schedule&nbsp;3.7</U> hereto, the Seller has no liability required
to be recorded in accordance with IFRS that is not reflected or reserved against in the Financial
Statements other than those incurred in the ordinary course of business since December&nbsp;31, 2009 or
set forth on subsequent interim financial statements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.8 <U>Absence of Certain Changes or Events</U>. Except as set forth on <U>Schedule&nbsp;3.8</U>, the
Business has been conducted, in all material respects, in the ordinary course of business
consistent with past practice and since August&nbsp;31, 2010, there has not occurred any Material
Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.9 <U>Compliance with Laws; Permits and Licenses</U>. Except as set forth on <U>Schedule
3.9</U> hereto, there is not outstanding or, to the Knowledge of the Seller, threatened any order,
writ, injunction or decree of any Governmental Authority or arbitration tribunal against or
involving the Seller, the Business or the Transferred Assets. To the Knowledge of the Seller, the
Business is currently, and has been at all times since
April&nbsp;1, 2006, conducted in full compliance with all Laws. Except as set forth on
<U>Schedule&nbsp;3.9</U> hereto, to the best Knowledge of the Seller, there has been no allegation of
any material violation of any such Laws, and no investigation or review by any federal, state or
local body or agency is pending, threatened or planned with respect to the Seller, the Business or
the Transferred Assets.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No representation or warranty is made under this Section&nbsp;3.9 with respect to ERISA,
employment, Taxes or environmental matters, which are covered exclusively by Sections&nbsp;3.15, 3.16,
3.17 and 3.18, respectively.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.10 <U>Permits and Licenses</U>. The Seller is in possession of all Business Permits required
for the conduct of the Business and the ownership and operation of the Transferred Assets, each of
which is in full force and effect. All aspects of the Business have been conducted in compliance
in all material respects with all such Business Permits since April&nbsp;1, 2006. No suspension,
cancellation, modification, revocation or nonrenewal of any Business Permit is pending or, to the
Knowledge of the Seller, threatened. All Business Permits material to the operation of the
Business are set forth on <U>Schedule&nbsp;3.10</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.11 <U>Real Property.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Owned</U>. <U>Schedule&nbsp;3.11(a)</U> contains a true and correct description of all
real property owned by the Seller and used in connection with the Business at the Relevant
Locations (the &#147;<U>Owned Real Property</U>&#148;). Only to the extent as set forth in <U>Schedule
3.11(a)</U>, true and correct copies of (i)&nbsp;all surveys, maps and plats, if any, of the Owned Real
Property, excluding the Owned Real Property in Jacksonville, Florida, that to
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the Seller&#146;s
Knowledge are in its possession; (ii)&nbsp;all permits, certificates, licenses and registrations that,
to the Seller&#146;s Knowledge, are in its possession and are necessary and/or required to operate the
Owned Real Property for the purposes for which such properties are presently being used; and (iii)
to the extent transferrable, all warranties, if any and that, to the Seller&#146;s Knowledge, are in its
possession, for all Improvements. To the extent as set forth in <U>Schedule&nbsp;3.11(a)</U>, the
originals of the items referenced in clauses (i)&nbsp;through (iv)&nbsp;of this sub-section shall be provided
to the Buyer on the Closing Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Leased</U>. <U>Schedule&nbsp;3.11(b)</U> contains a true and correct description of all
real property leased by the Seller and used in connection with the Business. A true and correct
copy of the Aldine Lease has been delivered to the Buyer. The Aldine Lease is valid, binding and
enforceable in accordance with its terms and is in full force and effect, and there are no offsets
or defenses by either landlord or tenant thereunder. There are no existing defaults, and no events
or circumstances have occurred which, with or without notice or lapse of time or both, would
constitute defaults, under the Aldine Lease. The subletting of any portion of the Aldine Lease by
the Seller to the Buyer will not (i)&nbsp;permit the landlord to accelerate the rent or cause the lease
terms to be renegotiated; (ii)&nbsp;constitute a default thereunder; (iii)&nbsp;require the consent of the
landlord or any third party; or (iv)&nbsp;affect the continuation, validity, or effectiveness thereof or
the terms thereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Improvements</U>. The Owned Real Property and property subject to the Aldine
Lease (the &#147;<U>Leased Real Property</U>&#148;) are zoned for the various purposes for which the
Improvements thereon are presently being used. To the best Knowledge of the Seller: (i)&nbsp;all
Improvements are in compliance with all applicable zoning and land use laws, ordinances and
regulations; and (ii)&nbsp;no part of any Improvement encroaches on any real property not included in
the Owned Real Property or the Leased Real Property, except in each case to the extent that would
not materially interfere with the use of such Improvements in the Business for the purposes for
which they are normally used.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;To the best Knowledge of the Seller and except as would not have a Material Adverse
Effect: (i)&nbsp;the Owned Real Property and the Leased Real Property have adequate water and sewer
supply for the current use of such property, and all sewer and water supply facilities required for
the current use of all such property are properly and fully installed and operating; (ii)&nbsp;all other
public or private utilities necessary for the operation of the Owned Real Property and the Leased
Real Property for current uses are properly and fully installed and operating; and (iii)&nbsp;all such
utilities enter the Owned Real Property and the Leased Real Property through adjoining public
streets or through valid easements across adjoining private lands, and all installation, connection
and similar charges in connection with such utilities have been paid in full.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;Except as forth on <U>Schedule&nbsp;3.11(e)</U>, to the best Knowledge of the Seller and
except as would not have a Material Adverse Effect: (i)&nbsp;the Improvements have been completed, and
there are no interior or exterior structural defects or other material defects in such Improvements
or any material defects in the plumbing, electrical, mechanical, heating, ventilating or
air-conditioning systems or other systems; and (ii)&nbsp;all such systems are in satisfactory working
order for current use, and all roofs and basements of the Improvements are in working condition.
With respect to the on-going projects set
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">forth on <U>Schedule&nbsp;3.11(e)</U> and to the best
Knowledge of the Seller (i)&nbsp;such projects are being performed by licensed contractors and (ii)
there is no material defect in the workmanship with respect to such projects.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Each portion of the Improvements is covered by a permanent certificate of occupancy that
is in full force and effect. To the best Knowledge of the Seller and except as would not have a
Material Adverse Effect, the condition and use of the Owned Real Property and Leased Real Property
conform to any certificates and permits required to be issued in connection with such property,
including, without limitation, the sewage and waste disposal and water system.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;The Seller has received no notice and has no Knowledge of any violations of any Law
affecting the Owned Real Property or the construction, management, ownership, maintenance, use,
acquisition or sale thereof (including, without limitation, building, health and environmental
laws, regulations and ordinances). The Seller has no Knowledge of any pending change in any Law
which may adversely affect the use or ownership of the Owned Real Property or the Leased Real
Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Except as set forth on <U>Schedule&nbsp;2.1(a)</U> or <U>Schedule&nbsp;3.11</U>, the Seller has
entered into no agreement, oral or written, not referred to herein, with reference to the Owned
Real Property or the Leased Real Property, and neither the Seller nor any portion of the Owned Real
Property or the Leased Real Property is subject to any claim, demand, suit, unfiled lien,
proceeding or litigation of any kind, pending or outstanding, or to the Knowledge of the Seller,
threatened which would in any way materially and adversely affect or limit the use of the Owned
Real Property or the Leased Real Property by the Buyer or its successors or assigns consistent with
the Seller&#146;s past practice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;There are no pending or, to the Knowledge of the Seller, threatened or contemplated
condemnation actions involving all or any portion of the Owned Real Property or the Leased Real
Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;Except as set forth on <U>Schedule&nbsp;2.1(a)</U>, there are no management, service,
maintenance, brokerage agreements, obligations, commitments, arrangements, written or oral entered
into by Seller, with respect to the Owned Real Property or the Leased Real Property that will
survive the Closing Date and bind the Buyer or the Owned Real Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;To the best of Seller&#146;s Knowledge and except as would not have a Material Adverse Effect,
(i)&nbsp;all streets and easements necessary for operation, maintenance and enjoyment of the Owned Real
Property and Leased Real Property are available to the boundaries of the Real Property consistent
with past practice; (ii)&nbsp;all curb cuts and street opening permits or licenses required for
vehicular access to and from the Owned Real Property and the Leased Real Property from any
adjoining public street have been obtained and paid for and are in full force and effect; and (iii)
there are no pending or threatened governmental proceedings which would limit or result in the
termination of the access to and from the Owned Real Property or the Leased Real Property and
adjoining public streets and roads.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.12 <U>Tangible Personal Property</U>. While no representation is made with respect to a
single or particular unit of Tangible Personal Property, the Tangible Personal Property taken as a
whole is in operating order, condition and repair, is suitable for use in the ordinary course of
business of the Business at the Relevant Locations consistent with past practice, and considered in
the aggregate, is free from material defects and is of a quality and quantity presently usable in
the ordinary course of business of the Business at the Relevant Locations consistent with past
practice.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.13 <U>Domestic Content</U>. Except as otherwise properly identifiable or traceable, all
engineered structural mesh and concrete pipe reinforcement products included in the Transferred
Assets were produced from wire rod melted and poured in the United States and these products can be
certified to be compliant with Buy American Laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.14 <U>Intentionally Omitted</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.15 <U>Employee Plans</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Compensation</U>. The Seller has previously made available to the Buyer a complete
and correct list of the name, position, rate of compensation and any incentive compensation
arrangements, bonuses or commissions or fringe or other benefits, whether payable in cash or in
kind, of each Business Employee.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Employee Benefit Plans</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U>Schedule&nbsp;3.15</U> contains a correct and complete list of all Employee Plans.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Except with respect to which the Buyer will have no liability, the Seller does not
contribute to, has no obligation to contribute to or otherwise has no liability or potential
liability with respect to (A)&nbsp;any Multiemployer Plan (as such term is defined in Section&nbsp;3(37) of
ERISA); (B)&nbsp;any Employee Plan of the type described in Sections&nbsp;4063 and 4064 of ERISA or in
Section&nbsp;413 of the Code (and regulations promulgated thereunder); or (C)&nbsp;any plan which provides
health, disability, life insurance, accident or other &#147;welfare-type&#148; benefits to current or future
retirees or current former employees, their spouses or dependents, other than in accordance with
Section&nbsp;4980B of the Code or applicable state continuation coverage law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;The Buyer and its Affiliates will not have any liability with respect to any plan
subject to Title IV of ERISA as a result of the transactions contemplated by this Agreement. The
Seller has not been required to post any security pursuant to Section&nbsp;307 of ERISA or Section
401(a)(29) of the Code, and neither the Seller nor any officer or director of the Seller has
Knowledge of any facts which could be expected to give rise to such lien or such posting of
security.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;The Seller Savings Plan, which is intended to be qualified under Section 401(a) of the
Code, and each trust forming a part thereof, has received a favorable determination letter from the
Internal Revenue Service as to the qualification
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">under the Code of such Seller Savings Plan and the
Tax-exempt status of such related trust, and nothing has occurred since the date of such
determination letter that could adversely affect the qualification of the Seller Savings Plan or
the Tax-exempt status of such related trust.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.16 <U>Labor and Employment Matters</U>. With respect to employment matters:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Except with respect to the Tampa Facility and the Hazleton Facility, no employees of the
Seller who work in the Business are or have been represented since April&nbsp;1, 2006 by a union or
other labor organization or covered by any collective bargaining agreement, and to the Knowledge of
the Seller, no union is attempting to organize any such employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;There is no labor strike, dispute, slowdown, unfair labor practice charge, stoppage or
similar labor difficulty pending or, to the Knowledge of the Seller, threatened against or
affecting the Business, nor have there been any such events pending or threatened since December
31, 2009.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Seller is in compliance with all Laws respecting employment and employment practices,
terms and conditions of employment and wages and hours, and there is no unfair labor practice
complaint against the Seller pending or, to the Knowledge of the Seller, threatened.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Except for any communications expressly approved by the Buyer in writing, no
representations other than a true and complete representation as to Buyer&#146;s obligation under the
second sentence of Section&nbsp;5.1(b)(ii) to pay severance benefits to certain Transferred Employees
and general statements that are non-binding as to the Buyer or the Seller regarding the Buyer&#146;s
intentions as expressed to the Seller, have been made by the Seller or its employees or agents to
employees of the Seller with respect to the Buyer&#146;s intentions to employ, or not to employ, the
Seller&#146;s employees or with respect to the conditions of any such employment. It is expressly
understood that the Buyer has made no representation as to its intentions to employ or not employ
any particular Business Employee or to retain any particular Transferred Employee for any specific
period of time.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.17 <U>Taxes</U>. The Seller has properly completed and timely filed all material tax returns
that relate to the Business or the Transferred Assets. All such tax returns are accurate, complete
and correct in all material respects and the Seller has timely paid all Taxes shown as due on such
tax returns. All material Taxes in respect of the Business or the Transferred Assets, have been
timely paid or, if not yet due, will be fully paid or adequately provided for in the Financial
Statements of the Seller. The Seller has timely made and will timely make all withholdings of
material Tax required to be made under all applicable Laws, and such withholdings have either been
paid or will be paid to the respective Governmental Authorities or have been set aside in accounts
for such purpose or accrued, reserved against and entered upon the Financial Statements of the
Seller. There are no Tax Encumbrances (other than liens for taxes which are not yet due
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and
payable) upon any of the Transferred Assets. The Seller is not a &#147;foreign person&#148; within the
meaning of Section&nbsp;1445 of the Code.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.18 <U>Environmental Matters</U>. Since April&nbsp;1, 2006 and except with respect to the
Jacksonville Facility for which no representation is made, to the best Knowledge of the Seller, the
existing and prior uses of the Transferred Assets comply with, and at all times have complied with,
and the Seller is not in violation of, and has not violated, in connection with the ownership, use,
maintenance or operation of the Transferred Assets, any Environmental or Occupational Safety and
Health Law. Specifically, but not in limitation of the foregoing:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;There are no Encumbrances on any of the Transferred Assets resulting from any Cleanup
or proposed Cleanup under the Environmental Laws.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except with respect to a portion of the Jacksonville Facility, no part of the real estate
included in the Transferred Assets constitutes &#147;wetlands&#148; as defined under any Environmental Law or
other law or regulation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.19 <U>Insurance</U>. <U>Schedule&nbsp;3.19</U> describes the self-insurance arrangements affecting
the Seller with respect to the Business.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.20 <U>Transferred Contracts</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Other than the Excluded Contracts and the Excluded Purchase Orders, the Transferred
Contracts listed or described on <U>Schedule&nbsp;2.1(a)</U> are all of the contracts used in or
necessary to conduct the Business in the Relevant Locations as conducted by the Seller prior to the
Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;With respect to each Transferred Contract and each Transferred Purchase Order: (i)&nbsp;the
Transferred Contract or Transferred Purchase Order, as applicable (giving effect to the course of
dealing modifications expressly set forth on <U>Schedules 2.1(a)</U> or <U>2.1(b)</U>, as
applicable), is legal, valid, binding and enforceable and in full force and effect with respect to
the Seller, as applicable, and is legal, valid, binding, enforceable and in full force and effect
with respect to each other party thereto to the Knowledge of the Seller (giving effect to the
course of dealing modifications expressly set forth on <U>Schedules 2.1(a)</U> or <U>2.1(b)</U>,
as applicable), in either case subject to the effect of bankruptcy, insolvency, moratorium or other
similar laws affecting the enforcement of creditors&#146; rights generally and except as the
availability of equitable remedies may be limited by general principles of equity; (ii)&nbsp;the
Transferred Contract or Transferred Purchase Order, as applicable, (giving effect to the course of
dealing modifications expressly set forth on <U>Schedules 2.1(a)</U> or <U>2.1(b)</U>, as
applicable) will continue to be legal, valid, binding and enforceable and in full force and effect
immediately following the Closing in accordance with its terms as in effect prior to the Closing,
subject to the effect of bankruptcy, insolvency, moratorium or other similar laws affecting the
enforcement of creditors&#146; rights generally and except as the availability of equitable remedies may
be limited by general principles of equity; and (iii)&nbsp;neither the Seller, nor any other party, to
the Knowledge of the Seller, is in breach or default in any material respect, and no event has
occurred (or by entering into this
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Agreement will occur) that with notice or lapse of time would
constitute a breach or default in any material respect by the Seller, or by any such other party,
or permit termination, or modification of, or acceleration of any payment due under, such
Transferred Contract or Transferred Purchase Order, and no notice of any such alleged breach or
default has been served on or received by the Seller.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.21 <U>Intellectual Property</U>.<U></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Schedule&nbsp;3.21(a)(i)</U> sets forth an accurate and complete list of all registered
Marks and applications for registration of Marks included in the Intellectual Property
(collectively, the &#147;<U>Business Registered Marks</U>&#148;), <U>Schedule&nbsp;3.21(a)(ii)</U> sets forth an
accurate and complete list of all Patents and applications for Patent included in the Intellectual
Property (collectively, the &#147;<U>Business Patents</U>&#148;) and <U>Schedule&nbsp;3.21(a)(iii)</U> sets
forth an accurate and complete list of all Copyrights Registrations and all applications for
registration of Copyright Registrations included in the Business Intellectual Property
(collectively, the &#147;<U>Business Registered Copyrights</U>&#148; and, together with the Business
Registered Marks and the Business Patents, the &#147;<U>Business Registered IP</U>&#148;). No Business
Registered IP is involved in any interference, reissue, reexamination, opposition or cancellation
proceeding. All filing, examination, issuance, post registration
and maintenance fees, annuities and the like associated with or required with respect to any
of the Business Registered IP have been paid.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Except as forth on <U>Schedule&nbsp;1.2</U>, the Seller owns all right, title and interest in
and to the Business Registered IP, free and clear of any claims, licenses or encumbrances, and, to
the Knowledge of the Seller, all issued Business Registered IP is valid, subsisting and
enforceable. The Seller has not received since April&nbsp;1, 2006 any notice or claim asserting that
any Intellectual Property is invalid or unenforceable, asserting any encumbrance or other claim
with respect to the Intellectual Property or challenging the Seller&#146;s sole ownership of any
Intellectual Property. No Intellectual Property is subject to any outstanding order, judgment,
decree, stipulation or agreement restricting the use or licensing thereof by the Seller or any
Affiliate thereof or which would restrict the use thereof by the Buyers.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;To the Knowledge of the Seller, none of the products or services distributed, sold or
offered by the Business, nor any activity or conduct of Seller in connection with the Business,
infringes upon or misappropriates any intellectual property right of any third party, and the
Seller has not received within the prior three years any notice or claim (including offers to
license) asserting that any such infringement or misappropriation has or may have occurred. To the
Knowledge of the Seller, no third party is misappropriating or infringing any Intellectual
Property.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Except as specifically set forth on <U>Schedule&nbsp;3.21(d)</U>, the Seller has not entered
into any license, covenant not to sue, concurrent-use agreement, consent to use or similar
agreement that grants any right to use, or consents to any use of, any Mark included in the
Intellectual Property.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.22 <U>Brokers</U>. No broker, finder or investment banker is entitled to any brokerage,
finder&#146;s or other fee or commission payable by the Buyer in connection with the transactions
contemplated hereby based upon arrangements made by or on behalf of the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.23 <U>Customers and Suppliers</U>. <U>Schedule&nbsp;3.23</U> lists, by dollar volume paid for the
ten months ended October&nbsp;23, 2010, the material customers of the Seller and the material suppliers
of the Seller (in each case solely with respect to the Business).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.24 <U>Solvency</U>. Immediately after giving effect to the transactions contemplated hereby,
each of the Seller and MMI Products, Inc. shall be able to pay their respective debts as they
become due and shall own property which has a fair saleable value greater than the amounts required
to pay their respective debts (including a reasonable estimate of the amount of all contingent
liabilities). Immediately after giving effect to the transactions contemplated hereby, each of the
Seller and MMI Products, Inc. shall have adequate capital to carry on their respective businesses.
No transfer of property is being made and no obligation is being incurred in connection with the
transactions contemplated by this Agreement with the intent to hinder, delay, or defraud either
present or future creditors of the Seller or MMI Products, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.25 <U>Product Warranties</U>. There are no continuing or outstanding warranties applicable to
goods or products manufactured or sold by the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.26 <U>Related Party Transactions</U>. Except as set forth in <U>Schedule&nbsp;3.26</U>, the Aldine
Lease, the leases of Tangible Personal Property that are Transferred Contracts, the Transferred
Purchase Orders and the Transferred Contracts do not include any agreement with, or any other
commitment to an Affiliate of the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.27 <U>Names</U>. Since April&nbsp;1, 2006, except as set forth in <U>Schedule&nbsp;3.27</U>, during the
term of its existence, the Seller has not been known by or conducted business under any other name.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.28 <U>Litigation</U>. Except as set forth on <U>Schedule&nbsp;3.28</U>, as of the date hereof,
there is no action or proceeding by or against the Seller in connection with the Business or which
could affect the Transferred Assets pending, or to the Knowledge of the Seller, threatened in
writing (a)&nbsp;seeking damages in excess of $100,000, (b)&nbsp;pursuing any criminal sanctions or
penalties, (c)&nbsp;seeking equitable or injunctive relief or (d)&nbsp;that would otherwise, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect or would affect the
legality, validity or enforceability of this Agreement or any Ancillary Agreement or the
consummation of the transactions contemplated hereby or thereby.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;3.29 <U>Exclusivity of Representations and Warranties</U>. Neither the Seller nor any of its
Affiliates or Representatives is making any representation or warranty of any kind or nature
whatsoever, oral or written, express or implied (including, but not limited to, any relating to
financial condition or results of operations of the Business or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">maintenance, repair, condition,
design, performance, value, merchantability or fitness for any particular purpose of the
Transferred Assets), except as expressly set forth in this Agreement and the Ancillary Agreements,
and the Seller hereby disclaims any such other representations or warranties.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IV<BR>
REPRESENTATIONS AND WARRANTIES OF THE BUYER</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Buyer hereby represents and warrants to the Seller as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.1 <U>Organization and Qualification</U>. The Buyer is a corporation duly organized, validly
existing and in good standing under the laws of North Carolina and has all necessary corporate
power and authority to own, lease and operate its properties and to carry on its business as it is
now being conducted. The Buyer is duly qualified or licensed to do business, and is in good
standing, in each jurisdiction where the ownership or operation of the Transferred Assets or the
conduct or operation of the Business after the Closing Date makes such qualification or licensing
necessary, except, in each case, for any such failures that would not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.2 <U>Authority</U>. The Buyer has the corporate power and authority to execute and deliver
this Agreement and each of the Ancillary Agreements to which it will
be a party, to perform its obligations hereunder and thereunder and to consummate the
transactions contemplated hereby and thereby. The execution, delivery and performance by the Buyer
of this Agreement and each of the Ancillary Agreements to which it will be a party and the
consummation by the Buyer of the transactions contemplated hereby and thereby have been duly and
validly authorized by all necessary corporate action. This Agreement has been, and upon their
execution each of the Ancillary Agreements to which the Buyer will be a party will have been, duly
and validly executed and delivered by the Buyer. This Agreement constitutes, and upon their
execution each of the Ancillary Agreements to which the Buyer will be a party will constitute, the
legal, valid and binding obligations of the Buyer, enforceable against the Buyer in accordance with
their respective terms, except as enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting creditors&#146; rights generally and by general
principles of equity (regardless of whether considered in a proceeding in equity or at law).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.3 <U>No Conflict; Required Filings and Consents</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The execution, delivery and performance by the Buyer of this Agreement and each of the
Ancillary Agreements to which the Buyer will be a party, and the consummation of the transactions
contemplated hereby and thereby, do not and will not:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;conflict with or violate the articles of incorporation or bylaws of the Buyer;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;conflict with or violate any Law applicable to the Buyer or by which any property or
asset of the Buyer is bound or affected; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;conflict with, result in any breach of, constitute a default (or an event that, with
notice or lapse of time or both, would become a default) under, or require any notice to or consent
of any Person pursuant to, or give to others any rights of termination, acceleration or
cancellation of, any material contract or agreement to which the Buyer is a party;
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">except, in the case of clause (ii)&nbsp;or (iii), for any such conflicts, violations, breaches, defaults
or other occurrences that would not, individually or in the aggregate, reasonably be expected to
have a Buyer Material Adverse Effect or that arise as a result of any actions of the Seller or any
of its Affiliates.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Buyer is not required to file, seek or obtain any notice, authorization, approval,
order, permit or consent of or with any Governmental Authority in connection with the execution,
delivery and performance by the Buyer of this Agreement and each of the Ancillary Agreements to
which it will be a party or the consummation of the transactions contemplated hereby or thereby,
except for where failure to obtain any consent, approval, authorization or action, or to make any
filing or notification, would not, individually or in the aggregate, reasonably be expected to have
a Buyer Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.4 <U>Financing</U>. The Buyer has sufficient funds to permit the Buyer to consummate the
transactions contemplated by this Agreement and the Ancillary Agreements. The Buyer has provided
the Seller with accurate and complete copies of materials satisfactory to the Seller evidencing the
Buyer&#146;s possession of sufficient funds for the transactions contemplated by this Agreement.
Notwithstanding anything to the contrary contained herein, the parties acknowledge and agree that
it shall not be a condition to the obligations of the Buyer to consummate the transactions
contemplated hereby that the Buyer have sufficient funds for payment of the Purchase Price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.5 <U>Brokers</U>. Except for Harris Williams, the fees of which will be paid by the Buyer, no
broker, finder or investment banker is entitled to any brokerage, finder&#146;s or other fee or
commission in connection with the transactions contemplated hereby based upon arrangements made by
or on behalf of the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;4.6 <U>Buyer&#146;s Investigation and Reliance</U>. The Buyer is not relying on any statement,
representation or warranty, oral or written, express or implied, made by the Seller or its
Affiliates or Representatives, except as expressly set forth in this Agreement and the Ancillary
Agreements. Neither the Seller nor any of its Affiliates or Representatives shall have any
liability to the Buyer or any of its Affiliates or Representatives resulting from the use of any
information, documents or materials made available to the Buyer, whether orally or in writing, in
any confidential information memoranda, &#147;data rooms,&#148; management presentations, due diligence
discussions or in any other form in expectation of the transactions contemplated by this Agreement
except as otherwise set forth in the representations and warranties set forth in this Agreement.
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Neither the Seller nor any of its Affiliates or Representatives is making, directly or indirectly,
any representation or warranty with respect to any estimates, projections or forecasts involving
the Business or the Transferred Assets. The Buyer acknowledges that there are inherent
uncertainties in attempting to make such estimates, projections and forecasts and that it takes
full responsibility for making its own evaluation of the adequacy and accuracy of any such
estimates, projections or forecasts (including the reasonableness of the assumptions underlying any
such estimates, projections and forecasts). The Buyer acknowledges that, except as provided in,
and subject in all respects to the terms and conditions of, this Agreement (including Article&nbsp;III
and the Disclosure Schedules) and in any Ancillary Agreements, the Buyer shall acquire the Business
and the Transferred Assets, on an &#147;as is&#148; and &#147;where is&#148; basis.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE V<BR>
COVENANTS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.1 <U>Employees and Employee Benefits</U>.<U></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;<U>Employment of Business Employees</U>. Effective as of the Closing Date, the Buyer
shall offer employment to all Business Employees listed on <U>Schedule&nbsp;5.1(a)</U> who are actively
at work with the Seller on the Closing Date. The Seller will encourage such Business Employees to
accept the offer, and will take no action to hinder such acceptance. The Buyer&#146;s offer and the
Business Employee&#146;s acceptance shall be contingent upon the Business Employee&#146;s satisfaction of the
Buyer&#146;s employment
screening. Upon satisfaction of such employment screening, the Business Employee&#146;s employment
by the Buyer shall commence effective as of the Closing Date. A Business Employee whose employment
with the Buyer becomes effective under this Section&nbsp;5.1(a) shall be referred to herein as a
&#147;<U>Transferred Employee</U>&#148;. The Seller shall pay all amounts due to such Transferred Employees
pursuant to the terms of any Employee Plan as required thereby, excluding all earned vacation. In
all events, the Buyer shall make offers of employment to a sufficient number of Business Employees
to avoid the Seller having any liability under the WARN Act with respect to any Business Employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;<U>Severance Obligations</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Seller maintains a severance policy, the terms of which are set forth in <U>Schedule
5.1(b)(i)</U>. The Seller shall pay severance benefits in accordance with such severance policy to
any Business Employee who either (i)&nbsp;is not offered employment by the Buyer because the Buyer
informs the Seller that it will not hire such Business Employee, or (ii)&nbsp;is offered employment but
does not accept the Buyer&#146;s offer of employment. The Seller shall not pay severance benefits to
any Business Employee who is offered employment by the Buyer but does not satisfy the Buyer&#146;s
employment screening. The terms the Buyer&#146;s employment screening are set forth in the sections
entitled &#147;drugs and alcohol&#148; and &#147;background check&#148; policies set forth in the Buyer&#146;s Employee
Handbook, copies of which policies are attached in <U>Schedule&nbsp;5.1(b)(ii)</U>. The amount paid by
the Seller under the severance policy shall be applied towards any obligation the Seller may have
under the WARN Act. Notwithstanding anything herein to the contrary, the Buyer shall in no case be
responsible for severance-related costs (as defined in Section
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.1(b)(ii), below) incurred by the
Seller with respect to the Seller&#146;s president and chief financial officer.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Within thirty (30)&nbsp;days after receiving an itemized invoice from the Seller, the Buyer
shall reimburse the Seller for all &#147;severance-related costs&#148; paid by the Seller to Business
Employees in accordance with Section&nbsp;5.1(b)(i), up to a total of $2,000,000 (the &#147;Severance Cap&#148;).
The Buyer shall not be obligated to reimburse the Seller for any severance-related costs incurred
by the Seller other than in accordance with the terms of the severance policy as set forth in
Schedule&nbsp;5.1(b)(i). In addition, the Buyer shall pay severance-related costs in accordance with
the Seller&#146;s severance policy specified on Schedule&nbsp;5.1(b)(i) to any Transferred Employee whose
employment with the Buyer terminates within six (6)&nbsp;months following the Closing Date under
circumstances entitling the Transferred Employee to benefits under such policy (or as otherwise
provided in a letter agreement assumed by the Buyer). To the extent that the Buyer&#146;s aggregate
severance-related costs under Section&nbsp;5.1(b) (including, for the avoidance of doubt, any
reimbursement it pays to the Seller pursuant hereto) exceed the Severance Cap, the Seller shall
reimburse the Buyer therefor within thirty (30)&nbsp;days after receiving an invoice from the Buyer.
For purposes of this Section&nbsp;5.1, &#147;severance related costs&#148; shall include severance pay and
outplacement benefits paid by the Seller or the Buyer in accordance with the Seller&#146;s severance
policy, plus the amount of any subsidy paid by the Seller on behalf of a terminated Business
Employee, or by the Buyer on behalf
of a terminated Transferred Employee, pursuant to a separation agreement towards the premium
for COBRA health benefits.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;<U>Employee Welfare Benefits</U>. The Transferred Employees shall cease participating in
the Employee Plans at 11:59&nbsp;p.m. on the Closing Date, except that their participation under the
Seller&#146;s group health plan shall be deemed to continue) in accordance with the provisions of
subsection (d). The Buyer agrees that the Transferred Employees will be eligible to commence
participation in the Buyer&#146;s employee welfare benefit plans for which they are eligible, other than
the Buyer&#146;s group health plan (the <U>&#147;Buyer Employee Plans</U>&#148;) as of 12:01&nbsp;a.m. on the day
immediately following the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;<U>Transition Health Benefits</U>. The Transferred Employees shall continue to
participate in the Seller&#146;s group health plan under the health care continuation law known as
&#147;COBRA&#148; from the Closing Date through December&nbsp;31, 2010 (the &#147;<U>transition period</U>&#148; During the
transition period, the Buyer shall pay to the Seller&#146;s health plan the aggregate amount of the
COBRA premium for coverage of the Transferred Employees and their eligible dependents and
beneficiaries. The Buyer may, at its option, withhold the amount of the Transferred Employees&#146;
regular contribution as in effect immediately before the Closing for such coverage from their
compensation paid by the Buyer during the transition period. The Buyer agrees that the Transferred
Employees will be eligible to commence participation in a group health plan sponsored by the Buyer
no later than the day following the end of the transition period. Within three hundred
and sixty-five (365)&nbsp;days following the end of the transition period, the Seller shall provide the
Buyer with an itemized accounting of the claims incurred under the Seller&#146;s group health plan
during the transition period with respect to Transferred Employees and their eligible
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">dependents
and beneficiaries. If the total amount of such claims incurred during the transition period
exceeds the total of the premiums paid by the Buyer to the Seller&#146;s health plan during the
transition period (disregarding for this purpose any amount collected from Transferred Employees&#146;
compensation during the period), the Buyer will pay the amount of the excess to the Seller within
fifteen (15)&nbsp;business days following the date the Seller provides the itemized report. If the
total amount of the claims incurred is less than the total of the premiums paid by the Buyer, then
the Seller will pay the difference to the Buyer within fifteen days of providing the itemized
report. For purposes of this report, a claim will be deemed to be incurred on the date that
services giving rise to a claim for reimbursement under the Seller&#146;s group health plan are
rendered, regardless of the date of onset of the disease or condition giving rise to the claim, and
without regard to when the claim is paid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U>401(k) Retirement Plan</U>. The Buyer maintains a Tax-qualified defined contribution
plan with a salary reduction arrangement, the terms of which meet the requirements of Sections
401(a) and 401(k) of the Code (the &#147;<U>Buyer Savings Plan</U>&#148;). Each Transferred Employee who is
eligible to contribute to the Seller&#146;s Tax-qualified defined contribution plan (the &#147;<U>Seller
Savings Plan</U>&#148;) on the Closing shall be eligible to contribute to the Buyer Savings Plan
commencing with the first payroll period ending on or after January&nbsp;12, 2011. As soon as
practicable following the Closing Date, but no later than 120
days following the Closing Date, the Seller shall cause the Seller Savings Plan to transfer to
the Buyer Savings Plan the accounts (including outstanding loans) of all Transferred Employees who
are still employed by the Buyer on the date of the transfer. In addition, from the Closing Date
through the date of such asset transfer, the Buyer shall, subject to employee consent, withhold
from the paychecks of Transferred Employees with outstanding loans under the Seller Savings Plan
the required amount of all loan repayments and promptly remit such withholdings to the trustee of
the Seller Savings Plan. The Sellers agree to reimburse the Buyers for any future contributions
required under the Buyer Savings Plan as a result of any administrative errors under the Seller
Savings Plan prior to the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;<U>WARN Act</U>. The Seller shall comply with all requirements of the WARN Act in
connection with its termination of any Business Employees and any other employees, and the Buyer
shall comply with all requirements of the WARN Act in connection with its termination of employment
of any Transferred Employees and any other employees. Amounts paid by the Buyer (i)&nbsp;under Buyer&#146;s
severance policy or (ii)&nbsp;pursuant to Section&nbsp;5.1(b)(ii), in accordance with the Seller&#146;s severance
policy specified on Schedule&nbsp;5.1(b)(i) to any Transferred Employee whose employment with the Buyer
terminates within six (6)&nbsp;months following the Closing Date under circumstances entitling the
Transferred Employee to benefits under such policy (or as otherwise provided in a letter agreement
assumed by the Buyer), shall apply towards any obligation the Buyer may have under the WARN Act.
For the avoidance of doubt, amounts paid by the Buyer in respect of its own WARN Act liabilities
shall be applied towards the Severance Cap. Notwithstanding the foregoing, if the Seller becomes
subject to the WARN Act as a result of actions taken by the Buyer after the Closing, the Buyer
shall be responsible for any liabilities incurred by the Seller with respect thereto. In
addition, the Buyer shall be solely responsible for any liabilities arising under the WARN Act at
the Aldine Facility.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;<U>COBRA</U>. The Buyer shall be responsible for all obligations for continuation
coverage under Section&nbsp;601 <I>et seq. </I>of ERISA (&#147;<U>COBRA Obligations</U>&#148;) with respect to the
Transferred Employees and their qualified beneficiaries whose qualifying event occurs after the
Closing Date. The Seller shall retain all COBRA obligations for (i)&nbsp;all Business Employees who do
not become Transferred Employees, including Business Employees who incurred a qualifying event
under COBRA prior to or in connection with the Closing; and (ii)&nbsp;all Business Employees who are not
actively at work on the Closing Date and do not become Transferred Employees for any reason.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;<U>Wage Reporting</U>. Seller and Buyer agree to utilize the standard procedure set
forth in Rev. Proc. 2004-53 with respect to wage reporting for Transferred Employees who are
employed by Buyer following the Closing Date.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.2 <U>Confidentiality</U>. Each of the parties shall hold, and shall cause its Representatives
to hold, in confidence all documents and information furnished to it by or on behalf of the other
party in connection with the transactions contemplated hereby pursuant to the terms of the
confidentiality agreement dated June&nbsp;28, 2010, between the Buyer and the Seller (the
&#147;<U>Confidentiality Agreement</U>&#148;), which shall continue in full force and effect until the
Closing Date, at which time such Confidentiality Agreement and the obligations of the parties under
this Section&nbsp;5.2 shall terminate; <U>provided</U>, <U>however</U>, that after the Closing Date,
the Confidentiality Agreement shall terminate only in respect of that portion of the Evaluation
Material (as defined in the Confidentiality Agreement) exclusively relating to the transactions
contemplated by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.3 <U>Use of Names</U>.<U></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Subject to the terms of Section&nbsp;5.3(b), on the Closing Date, the Seller shall cease to use
the Intellectual Property transferred to the Buyer as part of the Transferred Assets, including its
rights to use the names &#147;Ivy Steel &#038; Wire,&#148; &#147;Steeltex&#148; and &#147;Varigrid.&#148; Promptly after the Closing
Date, the Seller shall take all actions necessary to change its name, including filing with
secretaries of state amendments to its organizational and governing documents.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Notwithstanding anything set forth in this Agreement, the Buyer acknowledges and agrees
that, after the Closing Date, the Seller shall use the name &#147;Steeltex&#148; in order to sell the
Steeltex Inventory until such inventory is depleted and the Buyer hereby grants the Seller a
limited, non-exclusive license for such use.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.4 <U>Refunds and Remittances</U>.<U></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;After the Closing: (i)&nbsp;if the Seller or any of its Affiliates receive any refund or other
amount that is a Transferred Asset or is otherwise properly due and owing to the Buyer in
accordance with the terms of this Agreement, the Seller promptly shall remit, or shall cause to be
remitted, such amount to the Buyer; and (ii)&nbsp;if the Buyer or any of its Affiliates receive any
refund or other amount that is an Excluded Asset or is otherwise properly due and owing to the
Seller or any of its Affiliates in accordance with the terms of this Agreement, including, without
limitation any payments with respect to
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">any accounts receivable, the Buyer promptly shall remit, or
shall cause to be remitted, such amount to the Seller.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Without limiting the generality of the foregoing, for the 4-month period beginning on the
Closing Date, the Buyer shall use commercially reasonable efforts consistent with Buyer&#146;s practice
with respect to its own receivables to collect the Receivables on behalf of the Seller and the
proceeds thereof shall be remitted to the Seller once per month on the first business day of the
month for the collections during the immediately preceding month. Any payments not specifically
designated by the customer as payment for a specific invoice shall be applied to the oldest
outstanding service charge and then to the oldest outstanding invoice; <U>provided</U> that the
Buyer shall not and shall not explicitly or implicitly encourage customers to give precedence to
payment of receivables of the Buyer over the Receivables. Nothing herein shall be construed to
prevent the Seller from pursuing collection actions directly with account debtors.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.5 <U>No Solicitation</U>. The Buyer will not, for a period of eighteen (18)&nbsp;months following
the Closing Date, without the prior written consent of the Seller,
either alone or in conjunction with any other Person, directly or indirectly, or through its
present or future Affiliates, solicit (other than a solicitation by general advertisement) any
person who is an employee of the Seller or any of its Affiliates, at the date hereof or at any time
hereafter that precedes the Closing or such termination, to terminate his or her employment with
the Seller or such Affiliate, except as expressly permitted or required by Section&nbsp;5.1 of this
Agreement. The Buyer agrees that any remedy at law for any breach by the Buyer of this Section&nbsp;5.5
would be inadequate, and that the Seller would be entitled to injunctive relief in such a case. If
it is ever held that this restriction on the Buyer is too onerous and is not necessary for the
protection of the Seller, the Buyer agrees that any court of competent jurisdiction may impose such
lesser restrictions which such court may consider to be necessary or appropriate properly to
protect the Seller.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.6 <U>Noncompetition and Nonsolicitation</U>. As an inducement for the Buyer to enter into this
Agreement and as additional consideration for the consideration to be paid to the Buyer under this
Agreement, each of the Seller and the Guarantor agrees that:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;For a period of three (3)&nbsp;years after the Closing:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;Neither the Seller nor the Guarantor will, directly or indirectly, engage or invest in,
own, manage, operate, finance, control or participate in the ownership, management, operation,
financing or control of, be employed by, associated with or in any manner connected with, or render
services or advice or other aid to, or guarantee any obligation of, any Person engaged in or
planning to become engaged in the Business or any other business whose products or activities
compete in whole or in part with the Business anywhere in the United States of America;
<U>provided</U>, <U>however</U>, that either of the Seller or the Guarantor may purchase or
otherwise acquire up to (but not more than) one percent of any class of securities of any
enterprise (but without otherwise participating in the activities of such enterprise) if such
securities are listed on any national or regional securities exchange or have been registered under
Section 12(g) of the
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Securities Exchange Act of 1934, as amended. Each of the Seller and the
Guarantor agrees that this covenant is reasonable with respect to its duration, geographical area
and scope.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;Neither the Seller nor the Guarantor will, for a period of eighteen (18)&nbsp;months following
the Closing Date, without the prior written consent of the Buyer, either alone or in conjunction
with any other Person, directly or indirectly, or through its present or future Affiliates, solicit
(other than a solicitation by general advertisement) any person who is an employee of the Buyer or
any of its Affiliates, at Closing Date, to terminate his or her employment with the Buyer or such
Affiliate.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In the event of a breach by either of the Seller or the Guarantor of any covenant set
forth in the foregoing Section&nbsp;5.6(a), the term of such covenant will be extended by the period of
the duration of such breach.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Each of the Seller and the Guarantor agrees that any remedy at law for any breach by
either the Seller or the Guarantor of this Section&nbsp;5.6 would be inadequate, and that the Buyer
would be entitled to injunctive relief in such a case. If it is
ever held that this restriction on the Seller or the Guarantor is too onerous and is not
necessary for the protection of the Buyer, the Seller and the Guarantor agree that any court of
competent jurisdiction may impose such lesser restrictions which such court may consider to be
necessary or appropriate properly to protect the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Notwithstanding anything set forth in this Agreement, the Buyer acknowledges and agrees
that the Seller, the Guarantor or any of their Affiliates may (i)&nbsp;at any time, produce any products
that compete in whole or in part with the Business for use by the Seller, the Guarantor or any of
their Affiliates as components of or as a source of supply for or in connection with their
respective businesses and (ii)&nbsp;sell their remaining inventory of PC Strand products and the
Steeltex Inventory.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.7 <U>Bulk Sales</U>. Subject to the provisions of this Agreement relating to Transfer Taxes,
the parties agree to waive the requirements, if any, of all applicable bulk sales laws. As an
inducement to the Buyer to enter into such waiver, the Seller represents and warrants that it will
not be rendered insolvent by the transactions contemplated by this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.8 <U>Public Announcements</U>. The Seller and the Buyer have agreed to issue the press
release(s) substantially in the form attached hereto as <U>Exhibit&nbsp;J</U>, announcing the
transactions contemplated hereby. In connection with the transactions contemplated by this
Agreement, Insteel Industries, Inc. may make such announcements, disclosures and filings, and
furnish such documents, as it deems necessary or appropriate in connection with its status as a
publicly traded corporation.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.9 <U>Delivery of Audited Financial Information</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;The Seller has engaged Ernst &#038; Young LLP, an independent registered public accounting firm
(as defined by the Sarbanes-Oxley Act of 2002) (the &#147;<U>Transferred Assets Auditor</U>&#148;). The
Seller shall (i)&nbsp;cause such Transferred Assets Auditor to prepare and timely deliver to the Buyer:
(A)&nbsp;audited financial statements and the notes
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">relating thereto (and the Transferred Assets
Auditor&#146;s reports and unqualified opinions thereon) related to the Seller, including the operations
relating to the Pilot Steel Facility, for the fiscal years ended December&nbsp;27, 2008 and December&nbsp;26,
2009 and the nine-month period ended September&nbsp;25, 2010, that meet the requirements for audited
financial statements under accounting principles generally accepted in the United States (&#147;GAAP&#148;)
and Regulation&nbsp;S-X promulgated by the United States Securities and Exchange Commission (the
&#147;<U>SEC</U>&#148;), in sufficient form, scope and substance so that they may be (x)&nbsp;timely filed as an
exhibit to a Current Report on Form 8-K (or a timely filed amendment thereto) of the Buyer&#146;s parent
so that the Buyer may satisfy the SEC&#146;s financial statement reporting requirements triggered by the
transactions covered by this Agreement (the &#147;Form&nbsp;8-K&#148;) and (y)&nbsp;used and relied upon in the
preparation of the Annual Report on Form 10-K for the year ending October&nbsp;1, 2011 of the Buyer&#146;s
parent (the &#147;Form&nbsp;10-K&#148;), and (B)&nbsp;any consents needed in order to permit the Buyer&#146;s parent to
include such financial statements, opinions and reports thereon in any existing or subsequent
governmental filings (including, without limitation, any registration statements of the Buyer&#146;s
parent that are on file or that the
Buyer&#146;s parent may file with the SEC) ((A) and (B)&nbsp;together, the &#147;Audited Financial
Statements&#148;); and (ii)&nbsp;provide all associated pro forma adjustments and pro forma financial
statements to the Audited Financial Statements for the fiscal periods noted in (a)(i)(A) hereof, in
compliance with Regulation&nbsp;S-X and GAAP, necessary to exclude assets not purchased by the Buyer and
other related amounts in sufficient form, scope and substance so that such pro forma adjustments
and pro forma financial statements may be (x)&nbsp;timely filed as or included with an exhibit to the
Form 8-K and (y)&nbsp;used and relied upon in the preparation of the Form 10-K (the &#147;Pro Forma
Adjustments&#148;). The Seller shall provide to the Buyer written status reports prepared by the Seller
with respect to the preparation of the Audited Financial Statements and Pro Forma Adjustments no
less than once each week immediately following the date the Agreement is executed and shall
promptly provide the Buyer with written notification if the Transferred Assets Auditor, or the
Seller itself, expresses a doubt or concern that the Audited Financial Statements or the Pro Forma
Adjustments will not be delivered prior to the Financial Statement Deadline. The Seller shall
deliver to the Buyer the Audited Financial Statements and Pro Forma Adjustments described in the
preceding sentences on or before the seventieth (70th) day after the Closing Date (the
&#147;<U>Financial Statement Deadline</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;In addition to the foregoing, if requested by the Buyer, the Seller shall procure and
deliver at its own expense, within forty-five (45)&nbsp;days of any such request, such other financial
statements, financial information, audit work papers and related information and documentation
related to the Seller, including the operations relating to the Pilot Steel Facility and the pro
forma adjustments to the Audited Financial Statements necessary to exclude assets and other items
not purchased by the Buyer, in compliance with Regulation&nbsp;S-X and GAAP, as may be reasonably
requested or required by the Transferred Assets Auditor, Grant Thornton LLP (or such other
independent registered public accounting firm designated by the Buyer) or the SEC in connection
with the Buyer&#146;s need to satisfy the SEC&#146;s compliance, disclosure and reporting obligations (the
&#147;<U>Other Financial Materials</U>&#148;). Such Other Financial Materials shall be sufficient in form,
scope and substance for such purposes as requested or required, and shall include customary
consents, opinions and reports related thereto. For purposes of clarity and the avoidance of
doubt, the Seller shall be subject to the obligations set forth in this Section
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.9(b) until the
Buyer&#146;s parent files its Annual Report on Form 10-K for the year ending October&nbsp;1, 2011.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;The Seller shall direct the Transferred Assets Auditor to coordinate and cooperate with
the Buyer&#146;s independent registered public accounting firm as to the scope and conduct of any audit
services to be rendered in connection with the preparation of any audited or unaudited financial
statements required under or as a result of this Agreement and as to the thresholds or other
standards to be applied in determining the fiscal periods to be provided and the materiality of any
adjustment or other item. In addition, the Seller shall make available to the Buyer and the
Buyer&#146;s independent registered public accounting firm appropriate personnel on a reasonable basis
to assist in the preparation of the Audited Financial Statements, Pro Forma Adjustments and Other
Financial Materials contemplated by this Section&nbsp;5.9 and shall cooperate with the Buyer with
respect to any reasonable request (including such access, information and records as
may reasonably be requested) in connection with the obligations of the Buyer to prepare and
file with the SEC the financial statements and information required to satisfy its public reporting
obligations, including but not limited to the Audited Financial Statements, the Pro Forma
Adjustments and the Other Financial Materials. The Buyer shall reimburse the Seller for the
reasonable actual out-of-pocket fees and costs of the Transferred Assets Auditor incurred in
accordance with the Engagement Letter and in connection with the preparation and delivery of the
Audited Financial Statements and Other Financial Materials. Such payment shall be made promptly
upon receipt of invoices, billing statements and other reasonable supporting information received
by the Buyer after delivery of the Audited Financial Statements described in this Section&nbsp;5.9. For
purposes of clarity and the avoidance of doubt, the Seller shall be subject to the obligations set
forth in this Section&nbsp;5.9(c) until the Buyer&#146;s parent files its Annual Report on Form 10-K for the
year ending on October&nbsp;1, 2011.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;The Transferred Assets Auditor has delivered to the Buyer a copy of the engagement letter
pursuant to which the Transferred Assets Auditor has been engaged to provide the Audited Financial
Statements (the &#147;<U>Engagement Letter</U>&#148;). The Seller hereby represents and warrants that (i)
the Engagement Letter provided to the Buyer is true, correct and complete, that such letter has not
been amended, modified or terminated as of the date hereof and that such Engagement Letter sets
forth a true and complete description of the Transferred Assets Auditor&#146;s engagement; and (ii)&nbsp;the
audit committee (or similar body) of the board of directors of the parent company of Seller has
discussed with the Transferred Assets Auditor the independence of the Transferred Assets Auditor.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;The Buyer and the Seller acknowledge and agree that the Buyer would not have entered into
this Agreement unless the Buyer had received assurances that the Audited Financial Statements and
the Pro Forma Adjustments would be provided on or before the Financial Statement Deadline. The
Seller represents and warrants to the Buyer that the Seller is not aware of any fact, condition or
circumstance that will prevent or delay the Transferred Assets Auditor from providing the Audited
Financial Statements to the Buyer, or the Seller from providing the Pro Forma Adjustments, prior to
the Financial Statement Deadline. Both (i)&nbsp;the delivery of the Audited Financial Statements and
the Pro Forma Adjustments and (ii)&nbsp;the timeliness of such delivery are of great value and
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">importance to the Buyer. Accordingly, in the event that (i)&nbsp;the Audited Financial Statements and
the Pro Forma Adjustments prepared in accordance with this Section&nbsp;5.9 are not received by the
Buyer on or before the Financial Statement Deadline and (ii)&nbsp;the Buyer does not and reasonably
could not file such Audited Financial Statements or the Pro Forma Adjustments with the SEC on a
timely basis due to the Seller&#146;s failure to comply with the Financial Statement Deadline, then, the
outstanding principal amount of the Seller Note shall immediately (and without further action by
any party) be reduced by $5,000,000 (the &#147;<U>Purchase Price Reduction</U>&#148;). Of the consideration
defined in Section&nbsp;2.5, $5,000,000 is specifically allocated as consideration for receiving the
Audited Financial Statements and the Pro Forma Adjustments described in this Section&nbsp;5.9 on or
before the Financial Statement Deadline; the failure of the Seller to deliver the Audited Financial
Statements or the Pro Forma Adjustments on or before the Financial Statement Deadline will
constitute a failure of this consideration, which will
result in the Purchase Price Reduction, said reduction to be accomplished by the reduction of
the outstanding principal amount of the Seller Note as described above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;The foregoing adjustment of the outstanding principal amount of the Seller Note in the
event the Audited Financial Statements or the Pro Forma Adjustments are not delivered to the Buyer
by the Financial Statement Deadline shall not relieve the Seller from its obligation to ultimately
cause the production thereof after the Financial Statement Deadline and shall not limit the Buyer&#146;s
right to maintain an action for breach of this Section&nbsp;5.9 seeking specific performance as further
explained below. The Buyer and the Seller acknowledge and agree that the Seller&#146;s performance of
its obligations under this Section&nbsp;5.9 is critical to the Buyer&#146;s parent remaining in compliance
with Laws (including without limitation the regulations and rules promulgated by the SEC) and that
money damages would not be a sufficient remedy to fully compensate the Buyer and its parent for a
failure by the Seller to perform its obligations under this Section&nbsp;5.9 or a complete failure to
produce the Audited Financial Statements, the Pro Forma Adjustments and the Other Financial
Materials. Accordingly, the Seller agrees and consents to a court of competent jurisdiction
entering an order finding that the Buyer and its parent are without an adequate remedy at law as a
result of the failure by the Seller to perform its obligations under this Section&nbsp;5.9 and to the
granting of an order or decree of specific performance requiring the Seller (i)&nbsp;to provide the Pro
Forma Adjustments and Other Financial Materials, (ii)&nbsp;to direct the Transferred Assets Auditor to
perform any and all actions reasonably necessary to deliver, as soon as possible, the Audited
Financial Statements and (iii)&nbsp;to use its best efforts to cooperate with the Transferred Assets
Auditor and to facilitate production of the Audited Financial Statements, Pro Forma Adjustments and
Other Financial Materials, as soon as possible and in each case without proof of actual damages as
a remedy for any such breach. Such remedies and the Purchase Price Reduction shall be the
exclusive remedies for the Buyer&#146;s failure to receive the Audited Financial Statements, the Pro
Forma Adjustments and the Other Financial Materials or any other breach by the Seller of Section
5.9, whether at law or equity or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;5.10 <U>Further Assurances</U>. The Seller shall execute and deliver all such further instruments
of conveyance, assignment and further assurances, and shall take all such further acts, and provide
such further information, as may be reasonably requested by Buyer, in order to sell, transfer,
convey, assign and deliver to the Buyer all of Seller&#146;s
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">right, title and interest in and to the
Transferred Assets or to otherwise carry out the provisions and intent of this Agreement and the
Ancillary Agreements. The Seller specifically agrees that it shall cause its Affiliates that hold,
control or use the Transferred Assets, or in whose name any such assets may be titled, to promptly
take any and all such actions, and execute and deliver all instruments of conveyance, assignment
and further assurances, to deliver to the Buyer (and vest title in the Buyer) all Transferred
Assets.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VI<BR>
TAX MATTERS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.1 <U>Apportionment of Taxes</U>. The Seller shall be responsible for and pay any Taxes of the
Business acquired by the Buyer relating to periods (or portions thereof) ending at or before the
Effective Time. The Buyer shall be responsible for any
Taxes of the Business relating to periods (or portions thereof) beginning after the Effective
Time. For the sole purpose of appropriately apportioning any Taxes relating to a period that
includes (but that does not end on) the Closing Date, the portion of such Tax (or refund of such
Tax) that is attributable to the portion of such period that ends at the Effective Time shall be
(a)&nbsp;in the case of a Tax that is not transaction-based (e.g., real and personal property Taxes),
the total amount of such Tax for the full Tax period that includes the Closing Date multiplied by a
fraction, the numerator of which is the number of days from the beginning of such Tax period to and
including the Closing Date and the denominator of which is the total number of days in such full
Tax period and (b)&nbsp;in the case of a Tax that is transaction-based (e.g., income Taxes, employment
Taxes and sales Taxes), the Tax that would be due with respect to such partial period, if such
partial period were a full Tax period, apportioning income, gain, expenses, loss, deductions and
credits equitably based on an interim closing of the books.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;6.2 <U>Transfer Taxes</U>. Each party shall be responsible for one half of all stamp, transfer,
documentary, sales and use and value added Taxes (and similar Taxes ordinarily arising upon asset
transfers), if any, that are actually incurred as a result of the purchase and the sale of the
Transferred Assets (collectively, &#147;Transfer Taxes&#148;). The Buyer and the Seller agree to cooperate in
the preparation and filing of any tax returns with respect to Transfer Taxes. Notwithstanding the
foregoing, if and to the extent that such Transfer Taxes are incurred as a result of a breach of
(a)&nbsp;a Seller representation or warranty with Knowledge of the inaccuracy or incompleteness thereof,
or (b)&nbsp;a Seller covenant, in each case under this Agreement or the Ancillary Agreements, then in
any such case the Seller shall pay all such Transfer Taxes. Furthermore, the Seller shall bear no
indemnification for Losses resulting from breaches of the representations in the final two
sentences of Section&nbsp;3.4 or the final sentence of Section&nbsp;3.6, other than for Transfer Taxes and
directly related Losses such as penalties, interest, and associated professional fees (which shall
be treated as Excluded Liabilities under Article&nbsp;VIII).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;6.3 <U>Tax Returns</U>. Except as set forth below, the Buyer shall not file or amend any Tax Return
with respect to any tax period or portion thereof ending on or before the Closing Date in respect
of the Seller&#146;s Business without the prior written consent of the Seller, such Seller consent not
to be unreasonably withheld, conditioned, or delayed. For purposes of the preceding sentence, Tax
Return means any federal, state,
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">local or foreign return, declaration, report, statement,
information statement, declaration of estimated Tax, election and any other document, supporting
schedule, records and data required to be filed with respect to Taxes. Notwithstanding anything to
the contrary in this Agreement, the Buyer may file or amend a Tax Return with respect to a tax
period or portion thereof ending on or before the Closing Date in respect of the Seller&#146;s Business
without the prior written consent of the Seller, and the Seller shall nevertheless have an
indemnification obligation with respect to any Losses (as Excluded Liabilities) therefrom, if (a)
such filing or amendment is made after a Governmental Authority, on its own initiative, contacts
the Buyer regarding such pre-Closing period taxes, (b)&nbsp;the Buyer investigates such pre-Closing
period taxes and determines that there is sufficient question with respect thereto in order to
merit a request for an opinion of a state tax professional regarding same and (c)&nbsp;such professional
renders a written opinion that (i)&nbsp;such filing or
amendment is legally required and (ii)&nbsp;a post-Closing filing requirement would also apply to Buyer
with respect to such taxes in such jurisdiction. The Buyer shall submit a written proposal to the
Seller of a tax professional to render such an opinion to the Buyer. If the Seller does not object
to such proposal in writing within ten (10)&nbsp;days of such proposal, then the Seller shall be deemed
to have accepted such selection, and the professional fees for such opinion shall be borne wholly
by the Buyer, except as set forth in the last sentence of this Section&nbsp;6.3. If the Seller
communicates to the Buyer its written disagreement with such selection prior to the close of
business on such tenth day, then the parties shall mutually and reasonably agree upon an
alternative professional, such agreement to be reached by no later than the fifteenth (15th) day
following the Buyer&#146;s original proposal. The costs of the opinion rendered by the agreed-upon
professional shall be borne evenly by the parties, except as set forth in the next sentence. If
the professional rendering the opinion determines that the filing or amendment is required, the
professional fees for the opinion shall be Losses fully indemnifiable by the Seller as Excluded
Liabilities under Article&nbsp;VIII.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VII<BR>
CLOSING DELIVERABLES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;7.1 <U>Deliverables by the Seller</U>. At the Closing, the Seller shall deliver to the Buyer:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;signed counterparts of this Agreement and each of the Ancillary Agreements, each duly
executed and acknowledged by the Seller and any applicable Affiliates of the Seller;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;documents of title for the Transferred Assets, if any;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;those Exemption Certificates which by their terms call for the Seller&#146;s signature, each
duly executed and acknowledged by the Seller and any applicable Affiliates of the Seller;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;a certification of non-foreign status executed by the Seller and satisfying the
requirements of Section&nbsp;1.1445-2(b)(2)(i) of the United States Treasury Regulations;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;the Engagement Letter, duly executed by the Seller and the Transferred Assets Auditor;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;a certificate dated the Closing Date executed by the Secretary of the Seller certifying as
to the director, stockholder and other resolutions authorizing this Agreement and the Ancillary
Agreements to which the Seller is a party, in form reasonably satisfactory to the Buyer; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;a certificate dated the Closing Date executed by the Secretary of the Guarantor certifying
as to the director, stockholder and other resolutions authorizing this Agreement and the Ancillary
Agreements to which the Guarantor is a party, in form reasonably satisfactory to the Buyer.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 7.2 <U>Deliverables by the Buyer</U>. At the Closing, the Buyer shall deliver to the Seller:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;the Closing Date Payment;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;a signed counterpart of this Agreement and each of the Ancillary Agreements, each duly
executed and acknowledged by the Buyer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;a duly executed Seller Note, signed by the Buyer;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;those Exemption Certificates which by their terms call for the Buyer&#146;s signature, each
duly executed and acknowledged by the Buyer; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;a certificate dated the Closing Date executed by the Secretary of the Buyer certifying as
to the director, stockholder and other resolutions authorizing this Agreement and the Ancillary
Agreements to which the Buyer is a party, in form reasonably satisfactory to the Seller.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE VIII<BR>
INDEMNIFICATION</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.1 <U>Indemnification by the Seller</U>. The Seller shall save, defend, indemnify and hold
harmless the Buyer and its Affiliates, officers, directors, employees, agents, successors and
assigns (collectively, the &#147;<U>Buyer Indemnified Parties</U>&#148;) from and against any and all
losses, damages (excluding any of the foregoing that constitute punitive damages or liabilities,
except to the extent included in a Third Party Claim), liabilities, claims, awards, judgments,
penalties, interest, fines, costs and expenses (including, without limitation, costs of
investigating, preparing or defending applicable claims or proceedings and reasonable legal fees,
consulting fees and disbursements), as and when incurred by such parties and whether or not related
to a Third Party Claim (hereinafter collectively and generically, &#147;<U>Losses</U>&#148;) to the extent
resulting from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any breach or inaccuracy of any representation or warranty made by the Seller contained in
this Agreement;
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;noncompliance with any bulk sales laws or fraudulent transfer law (including, without
limitation, 11 U.S.C. Section&nbsp;548 and comparable state laws);
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any brokerage or finder&#146;s fees or commissions or similar payments based upon any agreement
or understanding made, or alleged to have been made, by any Person with the Seller in connection
with the transactions contemplated by this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any breach of any covenant or agreement by the Seller or its Affiliates contained in this
Agreement; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any Excluded Liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.2 <U>Indemnification by the Buyer</U>. The Buyer shall save, defend, indemnify and hold
harmless the Seller and its Affiliates, officers, directors, employees, agents, successors and
assigns (collectively, the &#147;<U>Seller Indemnified Parties</U>&#148;) from and against any and all
Losses incurred by such parties to the extent resulting from:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any breach or inaccuracy of any representation or warranty made by the Buyer contained in
this Agreement;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any breach of any covenant or agreement by the Buyer contained in this Agreement; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;any Assumed Liability.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.3 <U>Procedures.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;In order for a Buyer Indemnified Party or Seller Indemnified Party (the &#147;<U>Indemnified
Party</U>&#148;) to be entitled to any indemnification provided for under this Agreement as a result of
a Loss or a claim or demand made by any Person against the Indemnified Party (a &#147;<U>Third Party
Claim</U>&#148;), such Indemnified Party shall deliver notice thereof to the party against whom
indemnity is sought (the &#147;<U>Indemnifying Party</U>&#148;) as soon as practicable after receipt by such
Indemnified Party of written notice of the Third Party Claim, describing in reasonable detail the
facts giving rise to any claim for indemnification hereunder, the amount or method of computation
of the amount of such claim (if known) and such other information with respect thereto as the
Indemnifying Party may reasonably request. The failure to provide such notice (and any delay with
respect thereto), however, shall not release the Indemnifying Party from any of its obligations
under this Article&nbsp;VIII except to the extent that the Indemnifying Party is prejudiced by such
failure.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;The Indemnifying Party shall have the right, upon written notice to the Indemnified Party
within fifteen (15)&nbsp;days of receipt of notice from the Indemnified Party of the commencement of
such Third Party Claim, to assume the defense thereof at the expense of the Indemnifying Party with
counsel selected by the Indemnifying Party and reasonably satisfactory to the Indemnified Party.
If the Indemnifying Party assumes the defense of such Third Party Claim, the Indemnified Party
shall have the right to employ separate counsel and to participate in the defense thereof, but the
fees and expenses of such counsel shall be at the expense of the Indemnified Party;
<U>provided</U>, that if in the reasonable
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">opinion of counsel for the Indemnified Party, there is
a conflict of interest between the Indemnified Party and the Indemnifying Party, the Indemnifying
Party shall be responsible for the reasonable fees and expenses of one counsel to such Indemnified
Party in connection with such defense. If the Indemnifying Party assumes the defense of any Third
Party Claim, the Indemnified Party shall (y)&nbsp;cooperate with the Indemnifying Party in such defense
and make available to the Indemnifying Party all witnesses, pertinent records, materials and
information in the Indemnified Party&#146;s possession or under the Indemnified Party&#146;s control relating
thereto as is reasonably required by the Indemnifying
Party; and (z)&nbsp;not compromise or settle any such Third Party Claim without the prior written
consent of the Indemnifying Party not to be unreasonably withheld or delayed. The Indemnifying
Party shall not compromise or settle any such Third Party Claim, and shall not enter into any
settlement negotiations in connection therewith, without the prior written consent of the
Indemnified Party not to be unreasonably withheld or delayed. The Indemnified Party may, at its
own cost, participate in the investigation, trial and defense of any such proceeding defended by
the Indemnifying Party and any appeal arising therefrom and employ its own counsel in connection
therewith. The parties shall cooperate with each other in connection with any defense and in any
notifications to insurers. If the Indemnifying Party fails to promptly and diligently assume the
defense of such proceeding after receipt of notice hereunder, the Indemnified Party against which
such Third Party Claim has been asserted shall (upon delivering notice to such effect to the
Indemnifying Party) have the right to undertake the defense, compromise or settlement of such
proceeding with counsel of its own choosing and the Indemnifying Party shall have the right to
participate therein at its own cost. The Indemnified Party shall provide prompt notice to the
Indemnifying Party in the event of any compromise or settlement entered into pursuant to the
immediately preceding sentence. Losses shall be paid within five (5)&nbsp;Business Days of the final
determination of the merits and amount of a Third Party Claim.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;In the event any Indemnified Party should have a claim against any Indemnifying Party
hereunder that does not involve a Third Party Claim being asserted against or sought to be
collected from such Indemnified Party, the Indemnified Party shall deliver notice of such claim as
soon as practicable following notice thereof to the Indemnifying Party, describing in reasonable
detail the facts giving rise to any claim for indemnification hereunder, the amount or method of
computation of the amount of such claim (if known) and such other information with respect thereto
as the Indemnifying Party may reasonably request. The failure to provide such notice (and any
delay with respect thereto), however, shall not release the Indemnifying Party from any of its
obligations under this Article&nbsp;VIII except to the extent that the Indemnifying Party is prejudiced
by such failure. The Indemnified Party shall reasonably cooperate and assist the Indemnifying
Party in determining the validity of any claim for indemnity by the Indemnified Party and in
otherwise resolving such matters. Such assistance and cooperation shall include providing
reasonable access to and copies of information, records and documents relating to such matters,
furnishing employees to assist in the investigation, defense and resolution of such matters and
providing legal and business assistance with respect to such matters.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.4 <U>Limits on Indemnification.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;No claim may be asserted against either party for breach of any representation, warranty
or covenant contained herein unless written notice of such claim is received by such party,
describing in reasonable detail the facts and circumstances with respect to the subject matter of
such claim on or prior to the date on which the representation, warranty or covenant on which such
claim is based ceases to survive as set forth in Section&nbsp;8.6, in which case such representation,
warranty or covenant shall survive as to such claim until such claim has been finally resolved.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Notwithstanding anything to the contrary contained in this Agreement but subject to
Section&nbsp;8.4(f) and Section&nbsp;8.8:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;the maximum aggregate amount of indemnifiable Losses that may be recovered from the Seller
by the Buyer Indemnified Parties pursuant to Section&nbsp;8.1(a) shall be $6,600,000;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;the maximum aggregate amount of indemnifiable Losses that may be recovered from the Buyer
by the Seller Indemnified Parties pursuant to Section&nbsp;8.2(a) shall be $6,600,000;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;an Indemnifying Party shall not be liable to any Indemnified Party for any claim for
indemnification pursuant to Section&nbsp;8.1(a) or Section&nbsp;8.2(a) unless and until the aggregate amount
of indemnifiable Losses that may be recovered from such Indemnifying Party equals or exceeds
$675,000 (the &#147;<U>Basket Amount</U>&#148;), in which case the Indemnifying Party shall be liable only
for the Losses in excess of the Basket Amount; <U>provided</U>, <U>however</U>, that no Losses
may be claimed by any Indemnified Party or shall be reimbursable by any Indemnifying Party or shall
be included in calculating the aggregate Losses for purposes of this clause (iii)&nbsp;other than Losses
in excess of $20,000 (the &#147;<U>Minimum Loss Amount</U>&#148;) resulting from any single claim or
aggregated claims arising out of the same facts, events or circumstances; <U>provided</U>,
<U>further,</U> that the limitations set forth in Section&nbsp;8.4(b)(i)-(iii) shall not apply to
Losses arising out of any breach or inaccuracy of any representation or warranty contained in
Sections&nbsp;3.1, 3.2, 3.3, 3.4 (last three (3)&nbsp;sentences), 3.6, 3.13, 3.15, 3.17, 3.22, 4.1, 4.2, and
4.3 (collectively, the &#147;<U>Core Reps</U>&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;Losses shall be net of (A)&nbsp;any insurance proceeds or other amounts actually received by
the Indemnified Party or its Affiliates from third parties (other than captive insurance and
risk-sharing pool arrangements) in connection with the facts giving rise to the right of
indemnification and without any right of subrogation and (B)&nbsp;any Tax benefit actually realized by
such Indemnified Party or its Affiliates arising in connection with the accrual, incurrence or
payment of any such Losses in the year in which such Loss was incurred or in any preceding year;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the rights to indemnification in this Agreement are cumulative and not alternative, and
the recovery by a Person under any section hereof shall not limit or otherwise adversely affect the
right of such Person to indemnification under any other
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">section of this Agreement;<U>
provided</U>, however, that under no circumstances shall the Buyer be entitled under this Agreement
to more than one recovery for any Loss amount. For the avoidance of doubt, to the extent that a
given Loss might be attributable to a claim under one or more of these enumerated subsections on
the one hand, <U>and</U> to a claim under Section&nbsp;8.1(a) or 8.2(a) or 8.8 on the other hand, such
Losses and related indemnity with respect to Section&nbsp;8.8 shall not be limited in any manner by
Section&nbsp;8.4(b) based on the fact that they also arise under Sections&nbsp;8.1(a) and 8.2(a);
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;other than with respect to the reduction in Purchase Price set forth in Section&nbsp;5.9, the
Buyer shall have no right to setoff any obligations of the Seller or any of its Affiliates or
Representatives to any Buyer Indemnified Party, whether arising under this Article&nbsp;VIII or
otherwise, against the obligations of the Buyer or any of its Affiliates, or of any other surety or
guarantor thereof or under the Seller Note; the Buyer shall pay all amounts payable by it under the
Seller Note without setoff or deduction for any such obligations of the Seller or any of its
Affiliates or Representatives;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;no claim for Remedial Action shall be indemnifiable to the extent that the Remedial Action
exceeds that reasonably required by Law; and
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;nothing contained in this Agreement shall limit the maximum aggregate amount of
indemnifiable Losses that may be recovered from the Seller by the Buyer Indemnified Parties
pursuant to Section&nbsp;8.1(b)-(e) or from the Buyer by the Seller Indemnified Parties pursuant to
Section&nbsp;8.2(c).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.5 <U>Tax Effect of Indemnification Payments</U>. All indemnity payments made by the Seller to
Buyer Indemnified Persons, or by Buyer Indemnified Persons to the Seller, pursuant to this
Agreement shall be treated for all Tax purposes as adjustments to the Purchase Price.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.6 <U>Survival of Covenants, Representations and Warranties</U>. Each of the covenants,
indemnities, representations and warranties of the Seller and the Buyer in this Agreement or in any
schedule, instrument or other document delivered pursuant to this Agreement shall survive the
Closing Date and shall continue in force thereafter until the expiration of twenty-four (24)&nbsp;months
following the Closing Date; <U>provided</U>, <U>however</U>, that (a)(i) the representations,
warranties, covenants, agreements and Closing certifications made by the Seller and the Buyer in
relation to the Core Reps (and Transfer Taxes), and (ii)&nbsp;claims related to Excluded Liabilities,
shall each survive the Closing until the date which six (6)&nbsp;months after the date on which the
respective applicable statute of limitations has expired; and (b)&nbsp;covenants which by their terms
are to in effect beyond such 24-month period shall survive for such longer period in accordance
with their terms; <U>provided</U>, <U>further</U> that, the representations, warranties,
covenants and agreements made by the Seller with respect to fraudulent misrepresentation shall
survive until the date on which the statute of limitations with respect thereto has expired; and
<U>provided</U>, <U>further</U> that the covenants set forth in Section&nbsp;8.8 shall survive
indefinitely; and <U>provided</U>, <U>finally</U>, the representations, warranties and covenants
made in the General Warranty Deeds shall not be limited by the terms of this Article&nbsp;VIII.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.7 <U>Exclusivity</U>. After the Closing, this Article&nbsp;VIII will provide the exclusive remedy
against the Seller, its Affiliates and Representatives for any breach of any representation,
warranty, or covenant (other than the offset and other remedies provided in Section&nbsp;5.9) in this
Agreement (excluding any and all Ancillary Agreements).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.8 <U>Indemnification &#151; Environmental and Domestic Manufacturing Matters</U>. In addition to
the other indemnification provisions in this Article&nbsp;VIII, the Seller will indemnify, defend and
hold harmless the Buyer and the other Buyer Indemnified
Parties, and will reimburse the Buyer and the other Buyer Indemnified Parties, for any Losses
(which term, for purposes of amounts in respect of Section&nbsp;8.8(e) also includes losses or damages
that constitute indirect, special, incidental, consequential or punitive damages or liabilities,
including business interruption, loss of future revenue, profits or income, loss of business
reputation or opportunity), arising from or in connection with:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;any Environmental, Health and Safety Liabilities arising out of or relating to: (i)&nbsp;the
ownership or operation by any Person at any time on or prior to the Closing Date of any of the
Transferred Assets or the Business; or (ii)&nbsp;any Hazardous Materials or other contaminants that were
present on the Transferred Assets at any time on or prior to the Closing Date;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;any bodily injury (including illness, disability and death, regardless of when any such
bodily injury occurred, was incurred or manifested itself), personal injury, property damage
(including trespass, nuisance, wrongful eviction and deprivation of the use of real property) or
other damage of or to any Person or any Transferred Assets in any way arising from or allegedly
arising from any activity conducted by any Person with respect to the Business of the Seller or the
Transferred Assets prior to the Closing Date or from any Hazardous Material that was (i)&nbsp;present or
suspected to be present on or before the Closing Date on or at the Transferred Assets (or present
or suspected to be present on any other property, if such Hazardous Material emanated or allegedly
emanated from any Transferred Assets and was present or suspected to be present on any Transferred
Assets, on or prior to the Closing Date); or (ii)&nbsp;Released or allegedly Released by any Person on
or at any Transferred Assets at any time on or prior to the Closing Date; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;the termination of the Houston Aldine Property Sublease or the Aldine Lease or the
eviction or lockout of Buyer, as subtenant under the Houston Aldine Property Sublease, except for
any termination, eviction or lockout arising solely from Buyer&#146;s default or breach of the Houston
Aldine Property Sublease;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;any statutory landlord lien rights which may be asserted by the landlord under the Aldine
Lease, except for any statutory landlord lien rights arising solely from Buyer&#146;s failure to pay the
rent due and payable, as and when due, under the Houston Aldine Property Sublease; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;any Domestic Content Liabilities arising out of or relating to the Transferred Assets or
the Business; <U>provided</U>, that the maximum aggregate amount of indemnifiable Losses that may
be recovered from the Seller for any and all Domestic
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Content Liabilities shall be $15,000,000.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As provided in the Protocol Agreement, the Seller will be entitled to control any Remedial
Action and any Proceeding relating to environmental claims. Except as provided in the following
sentence, the Buyer shall control any other Proceeding with respect to which indemnity may be
sought under this Section&nbsp;8.8. The procedure described in Section&nbsp;8.3 will apply to any claim
solely for monetary damages relating to a matter covered by this Section&nbsp;8.8.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;8.9 <U>Miscellaneous</U>. THE INDEMNIFICATION PROVISIONS IN THIS ARTICLE VIII SHALL BE
ENFORCEABLE REGARDLESS OF WHETHER THE LIABILITY IS BASED UPON PAST, PRESENT OR FUTURE ACTS, CLAIMS
OR LAWS (INCLUDING ANY PAST, PRESENT OR FUTURE BULK SALES LAW, ENVIRONMENTAL LAW, FRAUDULENT
TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH LAW OR PRODUCTS LIABILITY, SECURITIES OR OTHER LAW)
AND REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT)
ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON
SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED UPON THE PERSON SEEKING
INDEMNIFICATION. EXCEPT WITH RESPECT TO THE CONTENT OF A REPRESENTATION OR WARRANTY (AND THE
RELATED DISCLOSURE SCHEDULES) IN DETERMINING A BREACH THEREOF AND CLAIM UNDER SECTION 8.1(a), THE
INDEMNIFICATION PROVISIONS IN THIS ARTICLE VIII SHALL NOT BE AFFECTED BY ANY INVESTIGATION OR
ASSESSMENT CONDUCTED WITH RESPECT TO, OR ANY KNOWLEDGE ACQUIRED (OR CAPABLE OF BEING ACQUIRED) AT
ANY TIME, WHETHER BEFORE OR AFTER THE EXECUTION AND DELIVERY OF THIS AGREEMENT, WITH RESPECT TO THE
ACCURACY OR INACCURACY OF OR COMPLIANCE WITH ANY REPRESENTATION, WARRANTY, COVENANT OR OBLIGATION
IN THIS AGREEMENT OR ANY EVENT, CIRCUMSTANCE, OCCURRENCE OR MATTER SUBJECT TO THE INDEMNIFICATION
PROVISIONS IN THIS ARTICLE VIII. THE WAIVER OF ANY CONDITION BASED UPON THE ACCURACY OF ANY
REPRESENTATION OR WARRANTY, OR ON THE PERFORMANCE OF OR COMPLIANCE WITH ANY COVENANT OR OBLIGATION,
WILL NOT AFFECT THE RIGHT TO INDEMNIFICATION, REIMBURSEMENT OR OTHER REMEDY BASED UPON SUCH
REPRESENTATIONS, WARRANTIES, COVENANTS AND OBLIGATIONS.
</DIV>


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</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>ARTICLE IX<BR>
GENERAL PROVISIONS</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.1 <U>Fees and Expenses</U>. Except as otherwise provided herein, all fees and expenses
incurred in connection with or related to this Agreement and the Ancillary Agreements and the
transactions contemplated hereby and thereby shall be paid by the party incurring such fees or
expenses, whether or not such transactions are consummated.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.2 <U>Amendment and Modification</U>. This Agreement may not be amended, modified or
supplemented in any manner, whether by course of conduct or otherwise, except by an instrument in
writing specifically designated as an amendment hereto, signed on behalf of each party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.3 <U>Waiver</U>. The rights and remedies of the Parties to this Agreement are cumulative and
not alternative. No failure or delay of either party in exercising any right or remedy hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such right or power, or any course
of conduct, preclude any other or further exercise thereof or the exercise of any other right or
power. Any agreement on the part of either party to any such waiver shall be valid only if set
forth in a written instrument executed and delivered by a duly authorized officer on behalf of such
party.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.4 <U>Notices</U>. All notices and other communications hereunder shall be in writing and shall
be deemed duly given (a)&nbsp;on the date of delivery if delivered personally, or if by facsimile, upon
written confirmation of receipt by facsimile, e-mail or otherwise; (b)&nbsp;on the first
(1<SUP style="FONT-size: 85%; vertical-align: text-top">st</SUP>) Business Day following the date of dispatch if delivered utilizing a next-day
service by a recognized next-day courier; or (c)&nbsp;on the earlier of confirmed receipt or the fifth
(5<SUP style="FONT-size: 85%; vertical-align: text-top">th</SUP>) Business Day following the date of mailing if delivered by registered or certified
mail, return receipt requested, postage prepaid. All notices hereunder shall be delivered to the
addresses set forth below, or pursuant to such other instructions as may be designated in writing
by the party to receive such notice:
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if to the Seller, to:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 12%; margin-top: 0pt">Oldcastle, Inc.<BR>
375 Northridge Road<BR>
Suite&nbsp;350<BR>
Atlanta, GA30350<BR>
Attention: Michael O&#146;Driscoll, Chief Financial Officer<BR>
Facsimile: 770-677-2370
</DIV>





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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with a copy (which shall not constitute notice) to:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 12%; margin-top: 6pt">Gibson, Dunn &#038; Crutcher LLP<BR>
200 Park Avenue<BR>
New York, New York 10166<BR>
Attention: Steven Shoemate<BR>
Facsimile: 212-351-5316
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>if to the Buyer, to:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 12%; margin-top: 6pt">Insteel Wire Products Company<BR>
1373 Boggs Drive<BR>
Attention: James Petelle<BR>
Facsimile: (336)&nbsp;786-2144
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="6%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>with a copy (which shall not constitute notice) to:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 12%; margin-top: 6pt">Womble Carlyle Sandridge &#038; Rice, PLLC<BR>
One West Fourth Street<BR>
Winston-Salem, NC 27101<BR>
Attention: Christopher E. Leon<BR>
Facsimile: 336-726-6932
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.5 <U>Interpretation</U>. When a reference is made in this Agreement to a Section, Article,
Exhibit or Schedule such reference shall be to a Section, Article, Exhibit or Schedule of this
Agreement unless otherwise indicated. The table of contents and headings contained in this
Agreement, any Exhibit or Schedule are for convenience of reference purposes only and shall not
affect in any way the meaning or interpretation of this Agreement. All words used in this
Agreement will be construed to be of such gender or number as the circumstances require. Any
capitalized terms used in any Exhibit or Schedule but not otherwise defined therein shall have the
meaning as defined in this Agreement. All Exhibits and Schedules annexed hereto or referred to
herein are hereby incorporated into and made a part of this Agreement as if set forth herein. The
word &#147;including&#148; and words of similar import when used in this Agreement will mean &#147;including,
without limitation,&#148; unless otherwise specified.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.6 <U>Entire Agreement</U>. This Agreement (including the Exhibits and Schedules hereto), the
Ancillary Agreements and the Confidentiality Agreement constitute the entire agreement, and
supersede all prior written agreements, arrangements, communications and understandings and all
prior and contemporaneous oral agreements, arrangements, communications and understandings between
the parties with respect to the subject matter hereof and thereof. Neither this Agreement nor any
Ancillary Agreement shall be deemed to contain or imply any restriction, covenant, representation,
warranty, agreement or undertaking of any party with respect to the transactions contemplated
hereby or thereby other than those expressly set forth herein or therein or in any document
required to be delivered hereunder or thereunder, and none shall be deemed to exist or be inferred
with respect to the subject matter hereof. Notwithstanding any oral agreement or
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">course of action of the parties or their Representatives to the contrary, no party to this
Agreement shall be under any legal obligation to enter into or complete the transactions
contemplated hereby unless and until this Agreement shall have been executed and delivered by each
of the parties.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.7 <U>No Third-Party Beneficiaries</U>. Nothing in this Agreement, express or implied, is
intended to or shall confer upon any Person other than the parties and their respective successors
and permitted assigns any legal or equitable right, benefit or remedy of any nature under or by
reason of this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.8 <U>Governing Law</U>. This Agreement and all disputes or controversies arising out of or
relating to this Agreement or the transactions contemplated hereby shall be governed by, and
construed in accordance with, the internal Laws of the State of Georgia, without regard to the Laws
of any other jurisdiction that might be applied because of the conflicts of laws principles of the
State of Georgia; <U>provided</U> that notwithstanding anything to the contrary herein, the
parties agree that the provisions of Section&nbsp;5.6 shall be construed under, governed by and enforced
in accordance with the laws of the State of North Carolina.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.9 <U>Submission to Jurisdiction</U>. Each of the parties irrevocably agrees that any legal
action or proceeding arising out of or relating to this Agreement brought by the other party or its
successors or assigns shall be brought and determined in any Georgia state or federal court sitting
in Fulton County in Atlanta, Georgia (or, if such court lacks subject matter jurisdiction, in any
appropriate Georgia state or federal court sitting in Georgia), which the parties agree shall be
the exclusive venue for such suits. Each of the parties further irrevocably agrees that any legal
action or proceeding arising out of or relating to the provisions contained in Section&nbsp;5.6 (or the
enforceability or enforcement thereof) brought by the other party or its successors or assigns
shall be brought and determined only in any North Carolina state or federal court sitting in Surry
County, North Carolina (or, if such court lacks subject matter jurisdiction, in any appropriate
North Carolina state or federal court sitting in North Carolina), which the parties agree shall be
the exclusive venue for resolution of disputes arising from or relating to Section&nbsp;5.6 hereof.
Each of the parties hereby irrevocably submits to the exclusive jurisdiction of and waives any
objections to personal jurisdiction in the state and federal courts of Georgia and North Carolina
for itself and with respect to its property, generally and unconditionally, with regard to any such
action or proceeding arising out of or relating to this Agreement and the transactions contemplated
hereby. Each of the parties agrees not to commence any action, suit or proceeding relating thereto
except in the courts described above in Georgia (or, with respect to Section&nbsp;5.6, North Carolina),
other than actions in any court of competent jurisdiction to enforce any judgment, decree or award
rendered by any such court in Georgia or North Carolina as described herein. Each of the parties
further agrees that notice as provided herein shall constitute sufficient service of process and
the parties further waive any argument that such service is insufficient. Each of the parties
hereby irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a
defense, counterclaim or otherwise, in any action or proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby, (a)&nbsp;any claim that it is not personally subject
to the jurisdiction of the courts in Georgia and North Carolina
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">as described herein for any reason, (b)&nbsp;that it or its property is exempt or immune from
jurisdiction of any such court or from any legal process commenced in such courts (whether through
service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) and (c)&nbsp;that (i)&nbsp;the suit, action or proceeding in any such
court is brought in an inconvenient forum; (ii)&nbsp;the venue of such suit, action or proceeding is
improper; or (iii)&nbsp;this Agreement, or the subject matter hereof, may not be enforced in or by such
courts.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.10 <U>Disclosure Generally</U>. Notwithstanding anything to the contrary contained in the
Disclosure Schedules or in this Agreement, the information and disclosures contained in any
Disclosure Schedule shall be deemed to be disclosed and incorporated by reference in any other
Disclosure Schedule as though fully set forth in such Disclosure Schedule for which applicability
of such information and disclosure is reasonably apparent on its face. The fact that any item of
information is disclosed in any Disclosure Schedule shall not be construed to mean that such
information is required to be disclosed by this Agreement. The Seller shall use good faith efforts
to include cross references to all relevant Disclosure Schedules on each Disclosure Schedule.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.11 <U>Personal Liability</U>. This Agreement shall not create or be deemed to create or permit
any personal liability or obligation on the part of any direct or indirect stockholder of the
Seller or the Buyer or any officer, director, employee, Representative or investor of either party
hereto.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.12 <U>Assignment; Successors</U>. Neither this Agreement nor any of the rights, interests or
obligations under this Agreement may be assigned or delegated, in whole or in part, by operation of
law or otherwise, by either party without the prior written consent of the other party, and any
such assignment without such prior written consent shall be null and void; <U>provided</U>, that
the Seller may assign any of its rights under this Agreement, including the right to receive the
Purchase Price, to one or more Affiliates of the Seller without the consent of the Buyer;
<U>provided</U>, <U>further</U>, that no assignment shall limit the assignor&#146;s obligations
hereunder. Subject to the preceding sentence, this Agreement will be binding upon, inure to the
benefit of, and be enforceable by, the parties and their respective successors and assigns.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.13 <U>Enforcement</U>. The parties agree that irreparable damage would occur in the event that
any of the provisions of this Agreement were not performed in accordance with their specific terms
or were otherwise breached. Accordingly, each of the parties shall be entitled to specific
performance of the terms hereof, including an injunction or injunctions to prevent breaches of this
Agreement and to enforce specifically the terms and provisions of this Agreement in any Georgia
State or federal court sitting in Atlanta, Georgia (or, if such court lacks subject matter
jurisdiction, in any appropriate Georgia State or federal court), this being in addition to any
other remedy to which such party is entitled at law or in equity. Each of the parties hereby
further waives (a)&nbsp;any defense in any action for specific performance that a remedy at law would be
adequate and (b)&nbsp;any requirement under any law to post security as a prerequisite to obtaining
equitable relief.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->56<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.14 <U>Currency</U>. All references to &#147;dollars&#148; or &#147;$&#148; or &#147;US$&#148; in this Agreement or any
Ancillary Agreement refer to United States dollars, which is the currency used for all purposes in
this Agreement and any Ancillary Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.15 <U>Severability</U>. Whenever possible, each provision or portion of any provision of this
Agreement shall be interpreted in such manner as to be effective and valid under applicable Law,
but if any provision or portion of any provision of this Agreement is held to be invalid, illegal
or unenforceable in any respect under any applicable Law or rule in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other provision or portion of any
provision in such jurisdiction, and this Agreement shall be reformed, construed and enforced in
such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any
provision had never been contained herein.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.16 <U>Waiver of Jury Trial</U>. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Acknowledged</U>:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="21%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Ivy Steel &#038; Wire, Inc.
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Insteel Wire Products Company</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-bottom: 1px solid #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-bottom: 1px solid #000000">/s/ H.O. Woltz III</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.17 <U>Arbitration</U>. Except for matters relating to specific performance, injunctive relief
or other equitable remedies, the parties hereto agree to submit to arbitration of any and all
matters in dispute or in controversy among them concerning the terms and provisions of this
Agreement. All such disputes and controversies shall be determined and adjudged by a panel of
three arbitrators, and the hearing shall be held in Atlanta, Georgia. The selection of the
arbitrators and the procedure shall be in accordance with the commercial arbitration rules then in
effect of the American Arbitration Association. Any award rendered shall be final and conclusive
upon the parties and a judgment thereon may be entered in the highest court of the forum, state or
federal, having jurisdiction. The expenses of arbitration shall be borne equally by the parties to
the arbitration, <U>provided</U> that each party pay for and bear the costs of its own experts,
evidence and counsel&#146;s fees, and <U>provided</U> <U>further</U> that in the discretion of the
arbitrators, any award may include the costs of a party&#146;s counsel if the arbitrators expressly
determine that a party against whom such award is entered has caused the dispute, controversy or
claim to be submitted to arbitration in bad faith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.18 <U>Counterparts</U>. This Agreement may be executed in two or more counterparts, all of
which shall be considered one and the same instrument and shall become effective when one or more
counterparts have been signed by each of the parties and delivered to the other party.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->57<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.19 <U>Facsimile Signature</U>. This Agreement may be executed by facsimile signature and a
facsimile signature shall constitute an original for all purposes.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.20 <U>Time of Essence</U>. Time is of the essence with regard to all dates and time periods set
forth or referred to in this Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.21 <U>No Presumption Against Drafting Party</U>. Each of the Buyer and the Seller acknowledges
that each party to this Agreement has been represented by counsel in connection with this Agreement
and the transactions contemplated by this Agreement. Accordingly, any rule of law or any legal
decision that would require interpretation of any claimed ambiguities in this Agreement against the
drafting party has no application and is expressly waived.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section&nbsp;9.22 <U>Guarantee by Guarantor</U>. In order to induce the Buyer to enter into this Agreement and
in recognition of the benefits flowing to the Guarantor from the consummation of the transactions
contemplated hereby, the Guarantor shall enter into the Guaranty Agreement.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>&#091;Signature page follows&#093;</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->58<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Seller, the Guarantor and the Buyer have caused this Agreement to be
executed as of the date first written above by their respective officers thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">SELLER:<BR>
<BR>
<B>IVY STEEL &#038; WIRE, INC.</B><BR>
<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Elizabeth A. Potts
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">Elizabeth A. Potts&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">BUYER:<BR>

<BR>
<B>INSTEEL WIRE PRODUCTS COMPANY</B><BR><br>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ H.O. Woltz III
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">H.O. Woltz III&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>

<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">GUARANTOR:
<BR>
<BR>
<B>OLDCASTLE BUILDING PRODUCTS, INC.</B><BR><br>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ William J. Sandbrook
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">William J. Sandbrook&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">SIGNATURE PAGE TO THE ASSET PURCHASE AGREEMENT BETWEEN<BR>
IVY STEEL &#038; WIRE, INC. AND INSTEEL WIRE PRODUCTS COMPANY
</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>List of Omitted Schedules and Exhibits<BR>
to that certain<BR>
Asset Purchase Agreement dated as of November&nbsp;19, 2010<BR>
between<BR>
Ivy Steel &#038; Wire, Inc.,<BR>
Oldcastle Building Products, Inc.,<BR>
and<BR>
Insteel Wire Products Company</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><DIV style="width: 100%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to Item&nbsp;601(b)(2) of Regulation&nbsp;S-K, Insteel Industries, Inc. hereby agrees to furnish
supplementally a copy of any omitted schedule or exhibit identified below to the Securities and
Exchange Commission upon request.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>OMITTED SCHEDULES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedule&nbsp;1.1 &#151; The Seller Persons with Knowledge<BR>
Schedule&nbsp;1.2(a) &#151; Permitted Encumbrances (Personal Property)<BR>
Schedule&nbsp;1.2(b) &#151; Permitted Encumbrances (Real Property)<BR>
Schedule&nbsp;2.1(a) &#151; Transferred Contracts<BR>
Schedule&nbsp;2.1(b) &#151; Transferred Purchase Orders<BR>
Schedule&nbsp;2.1(d) Tangible Personal Property<BR>
Schedule&nbsp;2.1(e) &#151; Tampa Assets<BR>
Schedule&nbsp;2.1(f) &#151; Transferred Inventory<BR>
Schedule&nbsp;2.1(k) &#151; Intellectual Property<BR>
Schedule&nbsp;2.2(k) &#151; Excluded Contracts<BR>
Schedule&nbsp;2.2(l) &#151; Excluded Purchase Orders<BR>
Schedule&nbsp;2.2(m) &#151; Excluded Inventory<BR>
Schedule&nbsp;2.2(s) &#151; Excluded Assets<BR>
Schedule&nbsp;2.3(a) &#151; Assumed Trade Accounts<BR>
Schedule&nbsp;2.3(d) &#151; Accrued Vacation/Paid Time Off of Transferred Employees<BR>
Schedule&nbsp;2.4(o) &#151; Sundry Payables<BR>
Schedule&nbsp;2.7 &#151; Unit Valuation Schedule<BR>
Schedule&nbsp;3.3 &#151; List of Consents required<BR>
Schedule&nbsp;3.5 &#151; Books and Records<BR>
Schedule&nbsp;3.6 &#151; Title to and Sufficiency of Assets<BR>
Schedule&nbsp;3.7 &#151; Financial Statements<BR>
Schedule&nbsp;3.8 &#151; Absence of Certain Changes or Events<BR>
Schedule&nbsp;3.9 &#151; Compliance with Law; Permits and Licenses<BR>
Schedule&nbsp;3.10 &#151; Business Permits<BR>
Schedule&nbsp;3.11(a) &#151; Owned Real Property<BR>
Schedule&nbsp;3.11(b) &#151; Leased Real Property<BR>
Schedule&nbsp;3.11(e) &#151; Improvements<BR>
Schedule&nbsp;3.15 &#151; Employee Plans

</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Schedule&nbsp;3.19 &#151; Insurance<BR>
Schedule&nbsp;3.21(a) &#151; Intellectual Property<BR>
Schedule&nbsp;3.21(d) &#151; Intellectual Property<BR>
Schedule&nbsp;3.23 &#151; Material Customers and Suppliers<BR>
Schedule&nbsp;3.26 &#151; Related Party Transactions<BR>
Schedule&nbsp;3.27 &#151; Other Names by which the Business was conducted<BR>
Schedule&nbsp;3.28 &#151; Litigation<BR>
Schedule&nbsp;5.1 &#151; Business Employees<BR>
Schedule&nbsp;5.1(a) &#151; Transferred Employees<BR>
Schedule&nbsp;5.1(b)(i) &#151; Severance Policies

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>OMITTED EXHIBITS</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Exhibit&nbsp;A &#151; Form of Assignment and Assumption Agreement<BR>
Exhibit&nbsp;B &#151; Form of Bill of Sale<BR>
Exhibit&nbsp;C &#151; Form of Guaranty Agreement<BR>
Exhibit&nbsp;D &#151; Form of General Warranty Deed for each State<BR>
Exhibit&nbsp;E &#151; Form of Owner Title Affidavit<BR>
Exhibit&nbsp;F &#151; Form of Transition Services Agreement<BR>
Exhibit&nbsp;G &#151; Form of Seller Note<BR>
Exhibit&nbsp;H &#151; Form of Houston Aldine Property Sublease<BR>
Exhibit&nbsp;I &#151; Form of Exemption Certificates<BR>
Exhibit&nbsp;J &#151; Form of Press Release<BR>
Exhibit&nbsp;K &#151; Form of Protocol Agreement

</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>g25361exv10w2.htm
<DESCRIPTION>EX-10.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.2</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>SUBORDINATED SECURED TERM NOTE</B></U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">$13,500,000
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">Mount Airy, North Carolina</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">November&nbsp;19, 2010</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED, the undersigned (the &#147;<B><I>Maker</I></B>&#148;), promises to pay to the order of Ivy Steel &#038;
Wire, Inc., a Delaware corporation (together with its permitted successors and assigns, the
&#147;<B><I>Holder</I></B>&#148;), in lawful money of the United States of America and in immediately available funds, the
principal amount of THIRTEEN MILLION AND FIVE HUNDRED THOUSAND DOLLARS ($13,500,000) (subject to
reduction pursuant to Section&nbsp;2.4), at the location and to the account specified in or pursuant to
Section&nbsp;7.4 below, together with interest, upon the terms and conditions set forth below.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;I</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>DEFINITIONS AND RELATED MATTERS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.1 </B><U><B>Definitions</B></U>. The following terms with initial capital letters have the following
meanings:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Affiliate</I></B>&#148; means, with respect to any Person, (i)&nbsp;any other Person that, directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, such first Person, and (ii)&nbsp;any officer or director of such Person (or any Person
with similar responsibilities). The term &#147;<B><I>control</I></B>&#148; means the possession, directly or indirectly,
of the power, whether or not exercised, (i)&nbsp;to vote 10% or more of the securities having voting
power for the election of directors (or Persons performing similar functions) of such Person or
(ii)&nbsp;to direct or cause the direction of the management or policies of a Person, whether through
the ownership of voting securities, by contract or otherwise, and the terms &#147;<B><I>controlled</I></B>&#148; and
&#147;<B><I>common control</I></B>&#148; have correlative meanings.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Applicable Law</I></B>&#148; means all applicable provisions of all (i)&nbsp;constitutions, treaties, statutes,
laws, rules, regulations and ordinances of any Governmental Authority, (ii)&nbsp;Governmental Approvals
and (iii)&nbsp;orders, decisions, judgments, awards and decrees of any Governmental Authority (including
common law and principles of public policy).</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Bankruptcy Code</I></B>&#148; means Title 11 of the United States Code (11 U.S.C. Section&nbsp;101 <I>et seq</I>.), as
amended from time to time.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Business Day</I></B>&#148; means any day that is not a Saturday, Sunday or other day on which banks in
Atlanta, Georgia are authorized or obligated to close.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Change of Control</I></B>&#148; means any of the following: (i)&nbsp;any person or group of persons (within
the meaning of the Securities Exchange Act of 1934, as amended) shall have acquired beneficial
ownership (within the meaning of Rule&nbsp;13d-3 promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934, as amended) of 20% or more of the issued and outstanding
shares of capital stock of Insteel Industries, Inc. having the</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Term Note</U>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">right to vote for the election of directors of Insteel Industries, Inc. under ordinary
circumstances, (ii)&nbsp;during any period of twelve consecutive calendar months, individuals who at the
beginning of such period constituted the board of directors of Insteel Industries, Inc. (together
with any new directors whose election by the board of directors of Insteel Industries, Inc. or
whose nomination for election by the stockholders of Insteel Industries, Inc. was approved by a
vote of at least two-thirds of the directors then still in office who either were directors at the
beginning of such period or whose election or nomination for election was previously so approved)
cease for any reason other than death or disability to constitute a majority of the directors then
in office, (iii)&nbsp;Insteel Industries, Inc. ceases to directly own and control all of the economic
and voting rights associated with all of the outstanding capital stock of Maker, or (iv)&nbsp;Insteel
Industries, Inc. ceases to own and control all of the economic and voting rights associated with
all of the outstanding capital stock of any of its Subsidiaries other than Maker.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Collateral</I></B>&#148; means, collectively, (i)&nbsp;the real property described on Schedule&nbsp;I hereto, (ii)
all &#147;equipment&#148; and all &#147;fixtures&#148; (in each case, as defined in the Uniform Commercial Code as the
same may, from time to time, be enacted and in effect in the State of Georgia) now or hereafter
located on such real property described on Schedule&nbsp;I hereto, and (iii)&nbsp;all proceeds of the
foregoing in whatever form, whether derived from voluntary or involuntary disposition, all products
of any of such property, and all renewals, replacements, substitutions, additions, accessions,
rents, issues, royalties and profits of, to or from any such property.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Contractual Obligation</I></B>&#148; means, as applied to any Person, any provision of any security issued
by that Person or of any material agreement or other material instrument to which that Person is a
party or by which it or any of the properties owned or leased by it is bound or otherwise subject.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Default</I></B>&#148; means any condition or event that, with the giving of notice or lapse of time or
both, would, unless cured or waived, become an Event of Default.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Distribution</I></B>&#148; means, with respect to any indebtedness, obligation or security, (i)&nbsp;any
payment or distribution by any person or entity of cash, securities or other property, by setoff or
otherwise, on account of such indebtedness, obligation or security, (ii)&nbsp;any redemption, purchase
or other acquisition of such indebtedness, obligation or security by any person or entity or (iii)
the granting of any lien or security interest to or for the benefit of the holders of such
indebtedness, obligation or security in or upon any property of any person or entity.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Enforcement Action</I></B>&#148; means (i)&nbsp;to take from or for the account of the Maker or any guarantor
of the Maker Obligations, by set-off or in any other manner, the whole or any part of any moneys
which may now or hereafter be owing by the Maker or any such guarantor with respect to the Maker
Obligations, (ii)&nbsp;to sue for payment of, or to initiate or participate with others in any suit,
action or proceeding against the Maker or any such guarantor to (a)&nbsp;enforce payment of or to
collect the whole or any part of the Maker Obligations or (b)&nbsp;commence judicial enforcement of any
of the rights and remedies under this Term Note and all other agreements, documents and instruments
executed from time to time in connection herewith, or applicable law with respect to the Maker
Obligations, (iii)&nbsp;to accelerate the Maker Obligations, (iv)&nbsp;to exercise any put option or to cause
the Maker or any such guarantor to honor any redemption or mandatory prepayment obligation under
this Term Note and all other agreements, documents and</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">instruments executed from time to time in connection herewith, or (v)&nbsp;to take any action under
the provisions of any state or federal law, including, without limitation, the Uniform Commercial
Code, or under any contract or agreement, to enforce, foreclose upon, take possession of or sell
any property or assets of the Maker or any such guarantor, including the Collateral..
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>GAAP</I></B>&#148; means generally accepted accounting principles as in effect in the United States of
America from time to time.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Governmental Approval</I></B>&#148; means an authorization, consent, approval, permit or license issued
by, or a registration or filing with, any Governmental Authority.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Governmental Authority</I></B>&#148; means any nation and any state or political subdivision thereof and
any entity exercising executive, legislative, judicial, regulatory or administrative functions of
or pertaining to government and any tribunal or arbitrator of competent jurisdiction.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Lien</I></B>&#148; means any lien, mortgage, pledge, security interest, charge, or encumbrance of any kind
(including any conditional sale or other title retention agreement or any lease in the nature
thereof) and any agreement to give or refrain from giving any lien, mortgage, pledge, security
interest, charge, or other encumbrance of any kind.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Maker Obligations</I></B>&#148; means any and all indebtedness, liabilities and obligations owing to
Holder at any time (whether such amounts represent obligations which are due or not due, direct or
indirect, absolute or contingent) pursuant to the terms of this Term Note.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Maker Parties</I></B>&#148; means, collectively, the Maker and its Subsidiaries.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Material</I></B>,&#148; &#147;<B><I>Material Adverse Effect</I></B>&#148; or &#147;<B><I>Material Adverse Change</I></B>&#148; means (i)&nbsp;a condition or
event material to, (ii)&nbsp;a material adverse effect on or (iii)&nbsp;a material adverse change in, as the
case may be, any one or more of the following: (a)&nbsp;the business, assets, results of operations,
condition (financial or otherwise) or prospects of the Maker Parties taken as a whole or (b)&nbsp;the
ability of the Maker to perform its obligations hereunder or (c)&nbsp;the validity, legality or
enforceability of this Term Note, any material provision therein, or the rights or remedies of the
Holder hereunder. &#147;<B><I>Materially</I></B>&#148; has a correlative meaning.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Permitted Encumbrances</I></B>&#148; means the following encumbrances: (i)&nbsp;Liens for taxes or assessments
or other governmental charges not yet due and payable or which are being contested in good faith by
appropriate proceedings; (b)&nbsp;pledges or deposits of money securing statutory obligations under
workmen&#146;s compensation, unemployment insurance, social security or public liability laws or similar
legislation; (c)&nbsp;workers&#146;, mechanics&#146;, repairmen&#146;s, carriers&#146;, warehousemen&#146;s, suppliers or similar
Liens arising in the ordinary course of business; or (d)&nbsp;zoning restrictions, easements, licenses
or other restrictions on the use of any real estate or other minor defects or irregularities in
title (including leasehold title) thereto, so long as the same do not materially impair the
ordinary conduct of the business of the Maker or the use of such real estate.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Permitted Maker Payments</I></B>&#148; means payments due and payable on a non-accelerated basis in
accordance with the terms of Sections&nbsp;2.1(a) and 2.2(a) of this Term Note.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Person</I></B>&#148; means an individual, a corporation, a partnership, a limited liability company, a
trust, an unincorporated organization or any other entity or organization, including a government
or any agency or political subdivision thereof.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Revolving Credit Agreement</I></B>&#148; means that certain Second Amended and Restated Credit Agreement,
dated as of June&nbsp;2, 2010, among Maker, as borrower, Insteel Industries, Inc. and Intercontinental
Metals Corporation, a wholly-owned subsidiary of Insteel Industries, Inc., as credit parties and
guarantors, General Electric Capital Corporation, as agent and lender, and the lenders who may
become signatories from time to time, as such agreement may be amended, amended and restated,
refinanced, replaced, supplemented or otherwise modified from time to time.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Senior Default</I></B>&#148; means any &#147;Event of Default&#148; under any or all documentation relating to any
or all of the Senior Obligations, or any condition or event that, after notice or lapse of time or
both, would constitute such an Event of Default if that condition or event were not cured or
removed within any applicable grace or cure period set forth therein.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Senior Obligations</I></B>&#148; means any and all indebtedness, liabilities and obligations, whether now
existing or hereafter arising, of the Maker (i)&nbsp;for borrowed money, (ii)&nbsp;for, under or with respect
to guarantees of obligations for borrowed money, (iii)&nbsp;arising under, or with respect or pursuant
to, any or all documentation relating to any or all of the obligations described in (i)&nbsp;and/or (ii)
above, in each case, from time to time owed to General Electric Capital Corporation (or its
successors or assigns), as agent for various lenders, and such lenders under the Revolving Credit
Agreement and under all other agreements, documents and instruments executed from time to time in
connection with the Revolving Credit Agreement or in replacement or substitution thereof; together
with, in each case, all accrued and unpaid interest and all fees, costs and expenses, whether
primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and from time to time
hereafter owing, due or payable, whether before or after the filing of a proceeding under the
Bankruptcy Code, without regard to whether or not such interest is an allowed claim.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Subsidiary</I></B>&#148; means, with respect to any Person, any other Person of which more than 50% of the
total voting power of the capital stock entitled to vote in the election of the board of directors
(or other Persons performing similar functions) are at the time directly or indirectly owned by
such first Person. Unless otherwise indicated, &#147;<B><I>Subsidiary</I></B>&#148; refers to a Subsidiary of the Maker.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B><I>Taxes</I></B>&#148; means any present or future income, stamp and other taxes, charges, fees, levies,
duties, imposts, withholdings or other assessments, together with any interest and penalties,
additions to tax and additional amounts imposed by any federal, state, local or foreign taxing
authority upon any Person.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>


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</DIV>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>1.2 </B><U><B>Related Matters</B></U>.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Construction</B>. Unless the context of this Term Note clearly requires otherwise,
&#147;including&#148; is not limiting. References in this Term Note to any law (or any part
thereof) include any rules and regulations promulgated thereunder (or with respect to such
part) by the relevant Governmental Authority, as amended from time to time.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Accounting Terms and Determinations</B>. Unless otherwise specified herein (and whether or
not expressly stated), all accounting terms used herein shall be interpreted, all accounting
determinations hereunder shall be made, and all financial statements required to be delivered
hereunder shall be prepared in accordance with GAAP.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;II</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>PAYMENTS ON THIS TERM NOTE</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.1 </B><U><B>Interest</B></U>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Interest Rate and Payment</B>. This Term Note shall bear interest on the unpaid principal
balance until payment in full at a fixed rate equal to 6.00% per annum. Accrued interest shall be
due and payable semi-annually in arrears on each April&nbsp;19 and November&nbsp;19, until November&nbsp;19, 2015.
Additionally, in the event of any repayment or prepayment of any principal amount under this Term
Note, accrued interest on the principal amount repaid or prepaid shall be payable on the date of
such repayment or prepayment. Any amount of principal of or interest on this Term Note that is not
paid when due, whether at stated maturity or otherwise, shall bear interest at the rate per annum
otherwise applicable hereunder plus 2%.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Computations</B>. Interest on this Term Note and the amounts payable hereunder shall be
computed on the basis of a 365- or 366-day year and the actual number of days elapsed (including
the first and excluding the last day of the period).</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Maximum Lawful Rate of Interest</B>. The rate of interest payable on this Term Note shall in
no event exceed the maximum rate permissible under Applicable Law. If the rate of interest payable
is ever reduced as a result of this Section and at any time thereafter the maximum rate permitted
by Applicable Law shall exceed the rate of interest provided for in this Term Note, then the rate
provided for in this Term Note shall be increased to the maximum rate provided by Applicable Law
for such period as is required so that the total amount of interest received by the Holder is that
which would have been received by the Holder but for the operation of the first sentence of this
Section.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.2 </B><U><B>Repayments and Prepayments of Principal</B></U>.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Repayment.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Maker shall make the following payments of the unpaid principal amount on the
following dates (each a &#147;<B><I>Payment Date</I></B>&#148;):
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>


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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Payment Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Amount</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">November&nbsp;19, 2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;&nbsp;&nbsp;$675,000</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">November&nbsp;19, 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;&nbsp;&nbsp;$675,000</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">November&nbsp;19, 2013</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;&nbsp;&nbsp;$675,000</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">November&nbsp;19, 2014</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$5,737,500</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px">November&nbsp;19, 2015</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">$5,737,500</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) This Term Note in any event shall be payable in full on November&nbsp;19, 2015 (the
&#147;<B><I>Maturity Date</I></B>&#148;). Any principal amount of this Term Note prepaid or repaid may not be
reborrowed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b)&nbsp;Optional Prepayments.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Maker may, at its option, at any time or from time to time, prepay this Term
Note in whole or in part, without premium or penalty upon not less than three Business Days&#146;
prior notice. Any notice of optional prepayment shall be irrevocable, and the payment
amount specified in such notice shall be due and payable on the date specified in such
notice, together with interest accrued thereon to such date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Any voluntary prepayment shall reduce the installments of principal of this Term
Note payable on each Payment Date in inverse order of maturity thereof.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c)&nbsp;Substitution of Collateral. </B>If (A)&nbsp;any portion of the Collateral shall be sold, assigned,
leased, conveyed, transferred or otherwise disposed of by the Maker, or if (B)&nbsp;there occurs a
condemnation, seizure or taking in whole of any of the real properties included in the Collateral,
by exercise of the power of eminent domain or otherwise, of such Collateral, or confiscation of any
of the real properties included in the Collateral in whole, then the Maker and Holder shall within
ninety (90)&nbsp;days of such event agree upon substitute collateral with a value reasonably equivalent
to the Collateral sold, assigned, leased, conveyed, seized, taken transferred or otherwise disposed
of by Maker and Maker shall thereafter promptly grant to Holder a first priority security interest
in and lien upon such substitute collateral upon substantially the same terms as provided in the
Collateral Documents.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Payments Set Aside. </B>To the extent the Holder receives payment of any amount under this
Term Note, whether by way of payment by the Maker, setoff, or otherwise, which payment is
subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be
repaid to a trustee, receiver or any other party under any bankruptcy law, other law or equitable
cause, in whole or in part, then, to the extent of such payment received, this Term Note or the
part hereof intended to be satisfied thereby shall be revived and continue in full force and
effect, as if such payment had not been received by the Holder.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.3 </B><U><B>Manner of Payment</B></U>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>The Maker shall make each payment under this Term Note to the Holder without any deduction
whatsoever, including any deduction for any setoff, recoupment, counterclaim or Taxes, except for
the setoff provided for pursuant to Section&nbsp;2.4, not later than 10:00&nbsp;a.m. (New York time) on the
due date thereof.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>Whenever any payment to be made hereunder shall be due on a day that is not a Business
Day, such payment shall instead be made on the next succeeding Business Day, together with interest
accrued during the period of such extension.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.4 </B><U><B>Reduction of Note</B></U><B>. </B>This Term Note is delivered pursuant to that certain Asset
Purchase Agreement of even date between Holder, Maker and Oldcastle Building Products, Inc. (the
&#147;<B><I>Asset Purchase Agreement</I></B>&#148;). Pursuant to Section&nbsp;5.9 of the Asset Purchase Agreement upon the
occurrence of certain events, the Purchase Price (as defined in the Asset Purchase Agreement) and
the principal amount evidenced by this Term Note shall be reduced by $5,000,000 and the payments to
be made under section 2.2(a)(i) shall be as follows: (1)&nbsp;November&nbsp;19, 2011, $425,000; (2)&nbsp;November
19, 2012, $425,000; (3)&nbsp;November&nbsp;19, 2013, $425,000; (4)&nbsp;November&nbsp;19, 2014, $3,612,500; (5)
November&nbsp;19, 2015, $3,612,500.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>2.5
</B><U><B>Security</B></U><b>.</b> This Term Note will, from and after the effective date of the
Collateral Documents, be secured by the Collateral, subject to the terms and conditions of the
Collateral Documents.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;III</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>REPRESENTATIONS AND WARRANTIES</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Maker represents and warrants to the Holder as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.1 </B><U><B>Organization, Powers and Good Standing</B></U><B>. </B>The Maker is a corporation duly
organized, validly existing and in good standing under the laws of North Carolina, and has all
necessary corporate power and authority to own, lease and operate its properties and to carry on
its business as it is now being conducted. The Maker is duly qualified or licensed to do business
and in good standing in each jurisdiction where the conduct of its business makes such
qualification or licensing necessary, except any jurisdictions where any failure to be so
qualified, individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>3.2 </B><U><B>Authorization, Binding Effect, No Conflict Etc.</B></U>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>The execution and delivery of, and performance by the Maker of its obligations under, this
Term Note have been duly authorized by all necessary corporate action on the part of the Maker.
This Term Note has been duly executed and delivered by the Maker and is the legal, valid and
binding obligation of the Maker, enforceable against it in accordance with its terms, except as
enforcement may be limited by equitable principles and by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to creditors&#146; rights generally.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Term Note</U>
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>The execution and delivery of, and performance by the Maker of its obligations under, this
Term Note, and the consummation of the transactions contemplated hereby, do not and will not (i)
violate any provision of the article of incorporation or bylaws of the Maker, (ii)&nbsp;except for
consents that have been obtained and are in full force and effect, conflict with, result in a
breach of, or constitute (or, with the giving of notice or lapse of time or both, would constitute)
a default under, or require the approval or consent of any Person pursuant to, any Contractual
Obligation of the Maker, or violate any Applicable Law binding on the Maker, except where such
violation, conflict, breach, or default could not reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect and would not subject the Holder to any liability, or
(iii)&nbsp;result in the creation or imposition of any Lien upon any asset of the Maker, or any income
or profits therefrom.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>No Governmental Approval is or will be required in connection with the execution and
delivery of, and performance by the Maker of its obligations under, this Term Note, or the
transactions contemplated hereby or to ensure the legality, validity or enforceability hereof.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;IV</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>AFFIRMATIVE COVENANTS OF THE MAKER</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So long as any amount remains outstanding under this Term Note:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.1 </B><U><B>Corporate Existence, Etc</B></U>. The Maker shall, and shall cause each of its Subsidiaries
to, at all times preserve and keep in full force and effect its corporate existence and all
material rights, franchises and other Governmental Approvals, <I>provided</I>, <I>however</I>, that: (a)&nbsp;the
corporate existence of any Subsidiary may be terminated, and any such Governmental Approval may be
terminated or not renewed, if such termination or nonrenewal, as the case may be, is determined by
the Board of Directors of the Maker to be in the best interest of the Maker and is not
disadvantageous in any material respect to the Holder; and (b)&nbsp;the Maker or any Subsidiary may fail
to keep in full force and effect its corporate existence or any material rights, franchises or
other Governmental Approvals so long as such failure, individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>4.2 </B><U><B>Security Interest</B></U>. Within 30&nbsp;days of the date hereof, the Maker shall grant the
Holder, as security for the prompt payment and performance in full when due of its obligations
hereunder, a perfected, first priority security interest in all of its right, title and interest
in, to and under the Collateral, whether now owned or hereafter acquired by the Maker, all pursuant
to a documentation reasonably satisfactory in form and substance to the Holder and the Maker (which
in any event shall include a recorded mortgage for each parcel of real property and a security
agreement and UCC-1 for all personal property included in the Collateral (the &#147;<B><I>Collateral
Documents</I></B>&#148;). It is understood and agreed that Maker shall bear the costs of recording the
mortgages and obtaining mortgagee title insurance for the real properties included in the
Collateral. The Maker shall not, directly or indirectly, make, create, incur, assume or suffer to
exist any Lien securing indebtedness for borrowed money upon or with respect to any
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">part of the Collateral, whether now owned or hereafter acquired, other than Liens in favor of the
Holder pursuant to the Collateral Documents.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;V</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>&#091;Intentionally Deleted&#093;</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Article&nbsp;VI</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>EVENTS OF DEFAULT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.1 </B><U><B>Events of Default</B></U><B>. </B>The occurrence of any one or more of the following events,
acts or occurrences shall constitute an event of default (each an &#147;<B><I>Event of Default</I></B>&#148;):
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a)&nbsp;Failure to Make Payments</B>. The Maker (i)&nbsp;shall fail to pay as and when due (whether at
stated maturity, upon acceleration, upon required prepayment or otherwise) any principal of this
Term Note which failure continues for a period of five Business Days after Maker receives written
notice of such failure from Holder, or (ii)&nbsp;shall fail to pay any interest or other amounts payable
under this Term Note, or any other Maker Obligations, which failure continues for a period of five
Business Days after Maker receives written notice of such failure from Holder; or</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) &#091;Intentionally Deleted&#093;</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) &#091;Intentionally Deleted&#093;</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d)&nbsp;Other Defaults. </B>The Maker shall fail to perform, comply with or observe any
agreement, covenant or obligation under any provision of this Term Note (other than those
provisions referred to in Sections&nbsp;6.01(a)) or of any Collateral Document, and such failure shall
not have been remedied within 30&nbsp;days after written notice of such failure is provided to an
executive officer of the Maker or such longer period as is reasonably necessary to cure such
failure so long as Maker is diligently pursuing the cure of such failure; or</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e)&nbsp;Breach of Warranty. </B>Any representation or warranty or certification made or furnished by
the Maker under Article&nbsp;III of this Term Note, or under any Collateral Document, shall prove to
have been false or incorrect in any material respect when made; or</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f)&nbsp;Involuntary Bankruptcy; Appointment of Receiver, Etc. </B>There shall be commenced against
any Maker Party, an involuntary case seeking the liquidation or reorganization of such Maker Party
under Chapter&nbsp;7 or Chapter&nbsp;11, respectively, of the Bankruptcy Code or any similar proceeding
under any other Applicable Law or an involuntary case or proceeding seeking the appointment of a
receiver, liquidator, sequestrator, custodian, trustee or other officer having similar powers of
any Maker Party or to take possession of all or a substantial portion of its property or to operate
all or a substantial portion of its business, and any of the following events occur: (i)&nbsp;such
Maker Party consents to the institution of such</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">involuntary case or proceeding, (ii)&nbsp;the petition commencing the involuntary case or proceeding
is not timely controverted, (iii)&nbsp;the petition commencing such involuntary case or proceeding
remains undismissed and unstayed for a period of 60&nbsp;days, or (iv)&nbsp;an order for relief shall have
been issued or entered therein; or
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(g)&nbsp;Voluntary Bankruptcy; Appointment of Receiver, Etc. </B>Any Maker Party shall institute a
voluntary case seeking liquidation or reorganization under Chapter&nbsp;7 or Chapter&nbsp;11, respectively,
of the Bankruptcy Code or any similar proceeding under any other Applicable Law, or shall consent
thereto; or shall consent to the conversion of an involuntary case to a voluntary case; or shall
file a petition, answer a complaint or otherwise institute any proceeding seeking, or shall consent
to or acquiesce in the appointment of, a receiver, liquidator, sequestrator, custodian, trustee or
other officer with similar powers of it or to take possession of all or a substantial portion of
its property or to operate all or a substantial portion of its business; or shall make a general
assignment for the benefit of creditors; or shall generally not pay its debts as they become due;
or the Board of Directors of such Maker Party (or any committee thereof) adopts any resolution or
otherwise authorizes action to approve any of the foregoing; or</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(h)&nbsp;Change of Control. </B>A Change of Control shall occur at any time; or</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(i) &#091;Intentionally Deleted&#093;</B></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(j)&nbsp;Invalidity. </B>Any material provision of this Term Note or any Collateral Document for any
reason ceases to be valid, binding and enforceable in accordance with its terms (or any Maker Party
shall challenge the enforceability of this Term Note or any Collateral Document or shall assert in
writing, or engage in any action or inaction based on any such assertion, that any provision of
this Term Note or any Collateral Document has ceased to be or otherwise is not valid, binding and
enforceable in accordance with its terms).</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>6.2 </B><U><B>Remedies</B></U>. Upon the occurrence of an Event of Default:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>If an Event of Default occurs under Section&nbsp;6.01(f) or 6.01(g), then the unpaid principal
amount of this Term Note and all other obligations of the Maker hereunder, and all other Maker
Obligations, shall automatically become immediately due and payable, without presentment, demand,
protest, notice or other requirements of any kind, all of which are hereby expressly waived by the
Maker.</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>If an Event of Default occurs, other than under Section&nbsp;6.01(f) or 6.01(g), the Holder
may, by written notice to the Maker, declare the unpaid principal amount of this Term Note and all
other obligations of the Maker hereunder, and all other Maker Obligations, to be, and the same
shall thereupon become, due and payable, without presentment, demand, protest, any additional
notice or other requirements of any kind, all of which are hereby expressly waived by the Maker.</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>



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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;VII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>MISCELLANEOUS</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.1 </B><U><B>Expenses</B></U>. The Maker shall pay promptly after demand any and all reasonable costs and
expenses (including reasonable fees and disbursements of in-house and other attorneys, appraisers
and consultants) incurred by the Holder in any amendment, workout, restructuring or similar
arrangements or, after a Default, in connection with the protection, preservation, exercise or
enforcement of any of the terms of this Term Note or in connection with any foreclosure, collection
or bankruptcy proceedings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.2 </B><U><B>Waivers; Amendments in Writing</B></U>. No amendment of any provision of this Term Note
(including a waiver thereof or consent relating thereto) shall be effective unless the same shall
be in writing and signed or consented to by the Holder. Any waiver or consent shall be effective
only in the specific instance and for the specific purpose for which given. No notice to or demand
on the Maker in any case shall entitle the Maker to any other or further notice or demand in
similar or other circumstances.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.3 </B><U><B>Cumulative Remedies; Failure or Delay</B></U>. The rights and remedies provided for under
this Term Note are cumulative and are not exclusive of any rights and remedies that may be
available to the Holder under Applicable Law or otherwise. No failure or delay on the part of the
Holder in the exercise of any power, right or remedy under this Term Note shall impair such power,
right or remedy or operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or remedy preclude other or further exercise thereof or of any other power, right
or remedy.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.4 </B><U><B>Notices, Etc</B></U>. All notices and other communications under this Term Note shall be in
writing and shall be personally delivered or sent by prepaid courier, by overnight, registered or
certified mail (postage prepaid), or by prepaid telex or telecopy, and shall be deemed given when
received by the intended recipient thereof. Unless otherwise specified in a notice sent or
delivered in accordance with this Section&nbsp;7.04, all notices and other communications shall be given
to the parties hereto as follows:
</DIV>
<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">If to Maker, to it at:<BR>
Insteel Wire Products Company<BR>
1373 Boggs Drive<BR>
Mount Airy, NC 27030
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Fax: 336-786-2144<BR>
Phone: 336-786-2141<BR>
Attention: James Petelle
</DIV>


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</DIV>



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<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">If to Holder, to it at:<BR>
Oldcastle, Inc.<BR>
375 Northridge Road<BR>
Suite&nbsp;350<BR>
Atlanta, GA 30350
</DIV>

<DIV align="left" style="font-size: 10pt; margin-left: 6%; margin-top: 6pt">Fax: 770-677-2370<BR>
Phone: 770- 677-2325<BR>
Attention: Michael O&#146;Driscoll, Chief Financial Officer
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.5 </B><U><B>Successors and Assigns</B></U>. This Term Note shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and transferees. The Maker may not assign or
transfer any interest hereunder without the prior written consent of the Holder. The Holder may
assign all or any part of this Term Note without the consent of the Maker.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.6 </B><U><B>Governing Law</B></U>. <B>THIS TERM NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH, AND THIS TERM
NOTE AND ALL CLAIMS AND CAUSES OF ACTION ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY SHALL
BE GOVERNED BY, THE LAWS OF THE STATE OF GEORGIA (OTHER THAN CHOICE OF LAW RULES THAT WOULD REQUIRE
THE APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION).</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.7 </B><U><B>Choice of Forum</B></U>. Each of the Maker and (by acceptance hereof) Holder irrevocably
agrees that any legal action or proceeding arising out of or relating to this Term Note brought by
the other party or its successors or assigns shall be brought and determined in any Georgia State
or federal court sitting in Fulton County in Atlanta, Georgia (or, if such court lacks subject
matter jurisdiction, in any appropriate Georgia State or federal court), and each of the parties
hereby irrevocably submits to the exclusive jurisdiction of the aforesaid courts for itself and
with respect to its property, generally and unconditionally, with regard to any such action nor
proceeding arising out of or relating to this Term Note. Each of the parties agrees not to
commence any action, suit or proceeding relating thereto except in the courts described above in
Georgia, other than actions in any court of competent jurisdiction to enforce any judgment, decree
or award rendered by any such court in Georgia as described herein. Each of the parties further
agrees that notice as provided herein shall constitute sufficient service of process and the
parties further waive any argument that such service is insufficient. Each of the parties hereby
irrevocably and unconditionally waives, and agrees not to assert, by way of motion or as a defense,
counterclaim or otherwise, in any action or proceeding arising out of or relating to this Term
Note, (i)&nbsp;any claim that it is not personally subject to the jurisdiction of the courts in Georgia
as described herein for any reason, (ii)&nbsp;that it or its property is exempt or immune from
jurisdiction of any such court or from any legal process commenced in such courts (whether through
service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise) and (iii)&nbsp;that (a)&nbsp;the suit, action or proceeding in any such
court is brought in an inconvenient forum; (b)&nbsp;the venue of such suit, action or proceeding is
improper; or (iv)&nbsp;this Term Note may not enforced in or by such courts. Nothing contained in this
Section shall preclude the Holder from bringing any action or proceeding
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">arising out of or relating to this Term Note in the courts of any place where the Maker or any
of its assets may be found or located.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.8 </B><U><B>Setoff</B></U>. The Holder shall have no right, other than by operation of Section&nbsp;2.4, to
setoff any obligations of the Maker to Holder or any of its Affiliates, whether arising under the
transactions contemplated by this Term Note or otherwise, against any obligations of the Holder or
any of its Affiliates to Maker, whether arising under the transactions contemplated by this Term
Note or otherwise.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.9 </B><U><B>Complete Agreement</B></U>. This Term Note is intended by Maker as a final expression of its
agreement regarding the subject matter hereof and contains a complete and exclusive statement of
the terms and conditions of such agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.10 </B><U><B>Headings</B></U>. The Article and Section headings used in this Term Note are for convenience
of reference only and shall not affect the construction hereof.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.11 </B><U><B>Severability</B></U>. If any provision of this Term Note shall be held to be invalid, illegal
or unenforceable under Applicable Law in any jurisdiction, such provision shall be ineffective only
to the extent of such invalidity, illegality or unenforceability, which shall not affect any other
provisions hereof or the validity, legality or enforceability of such provision in any other
jurisdiction.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.12 </B><U><B>Limitation of Liability, Etc; Certain Waivers</B></U>. No claim shall be made by any Maker
Party against the Holder or the Affiliates, directors, officers, employees or agents of the Holder
for any special, indirect, consequential or punitive damages in respect of any claim for breach of
contract or under any other theory of liability arising out of or related to the transactions
contemplated by this Term Note, or any act, omission or event occurring in connection therewith;
and the Maker, on behalf of itself and its Subsidiaries, waives, releases and agrees not to sue
upon any claim for any such damages, whether or not accrued and whether or not known or suspected
to exist in its favor. Maker expressly waives any presentment, demand, protest, notice of dishonor
or any other notice of any kind in connection with this Term Note now or hereafter required by
Applicable Law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>7.13 </B><U><B>WAIVER OF TRIAL BY JURY</B></U>. <B>TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE MAKER AND THE
HOLDER (BY ACCEPTANCE HEREOF) WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION UNDER THIS TERM NOTE
OR ANY ACTION ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHICH PARTY
INITIATES SUCH ACTION OR ACTIONS.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>


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<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Article&nbsp;VIII</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>SUBORDINATION</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.1 </B><U><B>Payment Subordination</B></U><B>. </B>Notwithstanding anything to the contrary contained in this
Term Note:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(a) </B>the payment of all Maker Obligations shall be subordinate and subject in right and time of
payment, to the extent and in the manner hereinafter set forth, to the prior indefeasible payment
in full in cash of the Senior Obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(b) </B>the Maker hereby agrees that it may not make, and the Holder hereby agrees that it will
not accept, any Distribution with respect to the Maker Obligations until the Senior Obligations are
indefeasibly paid in full in cash and all commitments to lend under the documents relating to any
or all of the Senior Obligations have been terminated other than the Permitted Maker Payments;
provided, however, that the Maker and the Holder further agree that no Permitted Maker Payments may
be made by the Maker or accepted by the Holder if:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at the time of such payment, a Senior Default exists and such Senior Default shall
not have been cured or waived; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 1%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Borrowing Availability (as such term is defined in the General Electric Capital
Corporation Credit Agreement) is less than $10,000,000 immediately before or after giving
effect to such payment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(c) </B>in the event of any proceeding under the Bankruptcy Code involving the Maker or any other
voluntary or involuntary insolvency, bankruptcy, receivership, custodianship, liquidation,
dissolution, reorganization, assignment for the benefit of creditors, appointment of a custodian,
receiver, trustee or other officer with similar powers proceeding for the liquidation, dissolution
or other winding up of the Maker (each a &#147;<B><I>Proceeding</I></B>&#148;):
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all Senior Obligations shall first be indefeasibly paid in full in cash and all
commitments to lend under the documents relating to any or all of the Senior Obligations
shall be terminated before any Distribution, whether in cash, securities or other property,
shall be made to the Holder on account of any Maker Obligation, and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Distribution, whether in cash, securities or other property which would
otherwise, but for the terms hereof, be payable or deliverable in respect of the Maker
Obligations shall be paid or delivered directly to the holders of the Senior Obligations
until all Senior Obligations are indefeasibly paid in full in cash and all commitments to
lend under the documents relating to any or all of the Senior Obligations have been
terminated; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Senior Obligations shall continue to be treated as Senior Obligations and the
provisions of this Section shall continue to govern the relative rights and priorities of
the holders of Senior Obligations and Holder even if all or part of the Senior Obligations
or the security interests securing the Senior Obligations are
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">subordinated, set aside, avoided, invalidated or disallowed in connection with any such
Proceeding and these provisions shall be reinstated if at any time any payment of any of the
Senior Obligations is rescinded or must otherwise be returned by any holder of Senior
Obligations or any representative of such holder;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(d) </B>until the Senior Obligations are indefeasibly paid in full in cash and all commitments to
lend under any or all of the documents relating to any or all of the Senior Obligations have been
terminated, the Holder shall not take any Enforcement Action with respect to the Maker Obligations;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(e) </B>if any Distribution on account of the Maker Obligations not permitted to be made by the
Maker or accepted by the Holder under this Section is made and is received by the Holder, such
Distribution shall not be commingled with any of the assets of the Holder, shall be held in trust
by the Holder for the benefit of the holders of the Senior Obligations and shall be promptly paid
over to the holders of the Senior Obligations for application to the payment of the Senior
Obligations then remaining unpaid, until all of the Senior Obligations are paid in full; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>(f) </B>with respect to the value of any Distribution that the Holder pays over to the holders of
the Senior Obligations under the terms of this Section, the Holder shall be subrogated to the
rights of the holders of the Senior Obligations, provided, however, that the Holder shall not
assert or enforce any of such rights of subrogation it may acquire as a result of any such
Distributions until all Senior Obligations are indefeasibly paid in full in cash and all
commitments to lend under the documents relating to any or all of the Senior Obligations have been
terminated. The Maker acknowledges and agrees that the value of any Distributions received by the
Holder that are paid over to the holders of the Senior Obligations pursuant to this Section shall
not reduce any of the Maker Obligations.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Notwithstanding the foregoing, (i)&nbsp;no provision herein shall prevent the Holder from filing
lawsuits to prevent the running of any applicable statute of limitations or other similar
restrictions on claims (provided, however, that such lawsuits shall not be filed earlier than one
month prior to the running of the applicable statute of limitation or other similar restrictions on
claims), and (ii)&nbsp;in any liquidation, reorganization, bankruptcy or similar proceeding in respect
of the Maker, the Holder may file proofs of claim against the Maker.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.2 </B><U><B>Modifications to and Enforcement of Senior Obligations.</B></U> The holders of the Senior
Obligations or any representative thereof may at any time and from time to time without the consent
of or notice to Holder, without incurring liability to Holder and without impairing or releasing
the obligations of Holder hereunder, change the manner or place of payment or extend the time of
payment of or increase the amount of indebtedness advanced or to be advanced under or renew or
alter any of the terms of the Senior Obligations, or amend in any manner any agreement, note,
guaranty or other instrument evidencing or securing or otherwise relating to the Senior Obligations
or take any moneys which may now or hereafter be owing with respect to the Senior Obligations or
take any action with respect to the whole or any part of the Senior Obligations, including, without
limitation, any action to enforce payment of or to collect the whole or any part of the Senior
Obligations, to accelerate payment of the Senior Obligations or to foreclose or realize upon or
enforce any of their rights with respect to any of the collateral (including, without limitation,
any inventory) securing Senior Obligations (&#147;<B><I>Senior Collateral</I></B>&#148;)
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">(including, without limitation, the disposition thereof). Holder agrees not to initiate,
prosecute or participate in any claim, action or other proceeding challenging the enforceability,
validity, perfection or priority of the Senior Obligations or any liens and security interests
securing the Senior Obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>8.3 </B><U><B>Access.</B></U> The holders of the Senior Obligations (or their representatives or
invitees) may at any time and from time to time enter the real property described on Schedule&nbsp;I
hereto without any interference by Holder to inspect or remove any or all of the Senior Collateral,
provided, however, that the holders of the Senior Obligations shall promptly repair, at their
expense, or reimburse Holder for any physical damage to such real property actually caused by any
removal of Senior Collateral by or through such holders (ordinary wear and tear excluded).
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Section&nbsp;8.1, Section&nbsp;8.2 and Section&nbsp;8.3 are intended for the benefit of, and will be enforceable
as a third party beneficiary by, any or all present and future holders of the Senior Obligations,
and no amendment or supplement to the provisions set forth in Section&nbsp;8.1, Section&nbsp;8.2 or Section
8.3 shall become effective unless such amendment or supplement is consented to in writing signed by
the holders of the Senior Obligations.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Space intentionally left blank.&#093;
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>IN WITNESS WHEREOF</B>, the Maker has caused this Term Note to be executed and delivered as of the
date first set forth above.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Maker:<BR>
<BR>
<BR>
<U>INSTEEL WIRE PRODUCTS COMPANY</U><BR>
a North Carolina corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ H.O. Woltz III
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD align="left">H.O. Woltz III&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD align="left">President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>Schedule&nbsp;I &#151; Real Property Collateral</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Kingman Facility</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Location Number: 502
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Building Description: ICM, 109,300 sq ft
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Address: 4750 North Olympic Dr, Kingman, AZ 86401
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Legal Description:
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">The following described real property located in Mohave County, Arizona:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U><B>PARCEL NO. 1</B></U><B>:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Parcel IX-K, as shown on Survey Plat recorded August&nbsp;23, 1988, at Fee No.&nbsp;88-35230 and
retraced on plat recorded December&nbsp;19, 1990, at Fee No.&nbsp;90-85600, records of Mohave County,
Arizona and being a division of the Northeast quarter (NE1/4) of Section&nbsp;26, Township 22
North, Range 16 West of the Gila and Salt River Base and Meridian, Mohave County, Arizona.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">EXCEPT all coal and other minerals, as reserved in instrument recorded in Book 34 of Deeds,
Page 308.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%"><U><B>PARCEL NO. 2</B></U><B>:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">Parcel IX-G-B, as shown on Record of Survey Plat recorded October&nbsp;21, 1991, in Book 7 of
Records of Surveys, Page 89, records of Mohave County, Arizona and being a division of the
Northeast quarter (NE1/4) of Section&nbsp;26, Township 22 North, Range 16 West of the Gila and
Salt River Base and Meridian, Mohave County, Arizona.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">EXCEPT the Northwesterly 186.03 feet thereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">EXCEPT all coal and other minerals, as reserved in instrument recorded in Book 34 of Deeds,
Page 308.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 4%">EXEMPT: A.R.S. 11-1134 B7
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>St. Joseph Facility</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Location Number: 503
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Building Description: Concrete, 156,980 sq ft
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Address: 801 Atchison St, St. Joseph, MO, 64503
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio --> Schedule I - Page 1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Legal Description:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The following described real property located in Buchanan County, Missouri:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TRACT A:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Lots 8, 9, 10, 11, 12 and 13, in Block 2, Lots 1 to 17 inclusive, in Block 3, Lots 1 to 20
inclusive in Block 4 and Lots 1 to 6 inclusive, 8 to 13 inclusive and 15 to 20 inclusive, in Block
5, all in Fowler&#146;s addition to the City of St. Joseph, Mo.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The west 90 feet of Block 2 and all of Block 3, in Guthrie&#146;s addition, an addition to the City of
St. Joseph, Buchanan County, Mo., situate in the southern quarter of Section&nbsp;20, TWP. 57 N., RNG.
35 W.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The west 90 feet of the east/west alley in said Block 2, Fowler&#146;s addition, vacated by Special
Ordinance #10871 of the City of St. Joseph, Missouri. All of the east/west alley in Block 3,
Fowler&#146;s addition, vacated by Special Ordinance #8300 of the City of St. Joseph, Missouri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of the east/west alley in Block 4, Fowler&#146;s addition, vacated by Special Ordinance #8300 of the
City of St. Joseph, Missouri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The west 90 feet of the east/west alley in Block 5, in Fowler&#146;s addition, vacated by Special
Ordinance #10871 of the City of St. Joseph, Missouri. The north/south alley in Block 5, Fowler&#146;s
addition and the east/west alley in said Block 5, Fowler&#146;s addition lying between 10th Street and
the east line of said north/south alley, vacated by Special Ordinance #16387 of the City of St.
Joseph, Missouri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All of the Fowler Street from the west line of Ninth Street to the west line of Fowler&#146;s addition,
as vacated by Special Ordinance #8298 of the City of St. Joseph, Missouri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The north one half of Fowler Street adjoining Lots 11, 12, and 13, Block 2, Fowler&#146;s addition on
the south and the south one half of Fowler Street adjoining Lots 8, 9, and 10, in Block 5, Fowler&#146;s
addition on the north, as vacated by Special Ordinance #10871 of the City of St. Joseph, Missouri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Belle Street from the west line of the north/south alley in Block 5, in Fowler&#146;s addition west to
right of way of the Chicago, Rock Island &#038; Pacific Railroad Company, vacated by Special Ordinance
#11219 of the City of St. Joseph, Missouri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ninth Street from the south line of Atchison Street to the north line of Belle Street, vacated by
Special Ordinance #10871 of the City of St. Joseph, Missouri and from the south line of Belle
Street south to the right of way of the Chicago, Rock Island and Pacific Railroad Company, vacated
by Special Ordinance #11219 of the City of St. Joseph, Missouri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A parcel of land located in the southeast quarter (se 1/4) of Section&nbsp;Twenty (20), Township
Fifty-Seven (57)&nbsp;North, Range Thirty-Five (35)&nbsp;West, being more fully described as follows:
commencing at the center of Section&nbsp;Twenty (20), Township Fifty-Seven (57)&nbsp;North, Range Thirty-Five
(35)&nbsp;West; thence east measured along the east and west center line of Section
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --> Schedule I - Page 2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Twenty (20), seven hundred twelve and six-tenths (712.6) feet; thence southerly at an angle of
ninety six degrees and ten minutes (96<SUP style="FONT-size: 85%; vertical-align: text-top">o</SUP>10&#146;) to the right, three hundred eight and
sixty-seven hundredths (308.67) feet to the Point of Beginning. Said point being twelve and
five-tenths (12.5) feet easterly measured radially to Chicago, Rock Island and Pacific Railroad
Company&#146;s main track as now located; thence continuing southerly parallel with and twelve and
five-tenths (12.5) feet from the center line of said Tract two hundred forth-one and eight tenths
(241.8) feet; thence southeasterly at an angle to the left of five degrees and fifty-eight minutes
(5<SUP style="FONT-size: 85%; vertical-align: text-top">o</SUP>58&#146;) from a line produced through the two (2)&nbsp;last described points one hundred
twenty-four and four tenths (124.4) feet, to a point twenty-five (25)&nbsp;feet easterly measured
radially to the center line of the original location of old main line to Trenton; thence
southeasterly on a curve to the left with a radius of four hundred fifty-three and thirty-four
hundredths (453.34) feet, a distance of three hundred seventy-eight and eight-tenths (378.8) feet;
thence northeasterly at right angles to tangent to said curve, a distance of fifty (50)&nbsp;feet;
thence northwesterly on a curve to the right with a radius of four hundred three and thirty-four
hundredths (403.34) feet, a distance of four hundred twenty-one and six tenths (421.6) feet; thence
westerly at right angles to tangent to said curve, forty-five (45)&nbsp;feet to a point thirty (30)&nbsp;feet
easterly measured radially to the centerline of the original main track; thence northerly parallel
with and thirty (30)&nbsp;feet from the center line of said Railroad Company&#146;s main track to Atchison
Street, two hundred seventy (270)&nbsp;feet; thence westerly seventeen and five tenths (17.5) feet to
the Point of Beginning, except any part thereof conveyed by St. Joseph Structural Steel Company, a
Missouri corporation, to Chicago, Rock Island and Pacific Railroad Company, a Delaware corporation
by quit claim deed dated June&nbsp;21, 1954 and recorded in Book 955, at Page 147 in the Office of the
Recorder of Deeds, Buchanan County, Missouri.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">TRACT B:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Point of Beginning being on a line thirty feet easterly of and parallel to the centerline of
Grantor&#146;s St. Joseph to Winthrop Main Track and on a line oriented at right angles to said
centerline located five hundred sixty-nine and nine tenths feet southerly of the east/west
centerline of Section&nbsp;20, as measured along said track centerline, Township 57 North, Range 35 West
of the Fifth Principal Meridian; thence easterly along said line oriented at right angles to said
centerline to a line twenty-five feet easterly of and parallel to the centerline of Grantor&#146;s Wye
Track to his abandoned St. Joseph to Coburn Line; thence southeasterly along the last line
intersected to a line oriented at right angles to said track centerline located four hundred
eighty-four feet southerly of said east/west centerline of Section&nbsp;20, as measured along said track
centerline; thence northerly along a line radial to said track centerline to a line seventy-five
feet northerly of and parallel to said track centerline; thence easterly along the last line of
intersected to the west line of the east thirty feet of Lot 2, Block 2 of Guthrie&#146;s addition to the
City of St. Joseph; thence southerly along the last line intersected one hundred ninety-five feet
more or less, to the south line of the north half of the southeast quarter of said Section&nbsp;20;
thence westerly along said south line five hundred forty-eight feet, more or less, to the easterly
line of that highway easement from the Grantor to the State Highway Commission of Missouri dated
February&nbsp;28, 1978; thence north 0<SUP style="FONT-size: 85%; vertical-align: text-top">o</SUP>50&#146;24&#148; east for fifty-three and twenty-one hundredths
feet; thence north 14<SUP style="FONT-size: 85%; vertical-align: text-top">o</SUP>31&#146;14&#148; west for one hundred twenty-one and twenty-seven hundredths
feet; thence south 75<SUP style="FONT-size: 85%; vertical-align: text-top">o</SUP>28&#146;46&#148; west for sixty-one and seven tenths feet; thence north
14<SUP style="FONT-size: 85%; vertical-align: text-top">o</SUP>31&#146;14&#148; west one hundred seven feet, more or less, to said line thirty feet easterly
of and parallel to said main track centerline; thence northerly along the last line intersected to
the Point of Beginning; all in
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio --> Schedule I - Page 3<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">the north half of the southeast quarter of Section&nbsp;20, Township 57 North, Range 35 West of the
Fifth Principal Meridian.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u>Term Note</u>
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio --> Schedule I - Page 4<!-- /Folio -->
</DIV>

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<TYPE>EX-99.1
<SEQUENCE>4
<FILENAME>g25361exv99w1.htm
<DESCRIPTION>EX-99.1
<TEXT>
<HTML>
<HEAD>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;99.1</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><IMG src="g25361g2536100.gif" alt="(INSTEEL INDUSTRIES LOGO)">
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><u><B>NEWS RELEASE</B></u>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">FOR IMMEDIATE RELEASE
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Contact:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Michael C. Gazmarian</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President, Chief Financial Officer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">and Treasurer</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Insteel Industries, Inc.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">336-786-2141, Ext. 3020</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>INSTEEL INDUSTRIES ACQUIRES ASSETS OF IVY STEEL &#038; WIRE</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">MOUNT AIRY, N.C., November&nbsp;19, 2010 &#151; Insteel Industries, Inc. (NasdaqGS: IIIN) today announced
that its wholly-owned subsidiary, Insteel Wire Products Company (together referred to as &#147;Insteel&#148;
in this press release) has purchased certain of the assets of Ivy Steel &#038; Wire, Inc. (&#147;Ivy&#148;) for a
purchase price of approximately $51.1&nbsp;million, subject to certain post-closing adjustments (the
&#147;Ivy Acquisition&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ivy, a division of Oldcastle, Inc, the U.S. holding company of CRH PLC (NYSE: CRH), is one of the
nation&#146;s largest producers of welded wire reinforcement and wire products for concrete construction
applications. Ivy operates five facilities, which are located in Arizona, Florida, Missouri,
Pennsylvania and Texas. In 2009, Ivy reported net sales of $104.3&nbsp;million
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Under the terms of the purchase agreement, Insteel acquired, among other assets, certain of Ivy&#146;s
inventories and its production facilities located in Hazleton, Pennsylvania; Jacksonville, Florida;
Kingman, Arizona; and St. Joseph, Missouri in addition to the production equipment located at its
Houston, Texas facility for $37.6&nbsp;million of cash and a $13.5&nbsp;million secured subordinated note
payable to Ivy over five years. Ivy retains, among other assets, accounts receivable and the assets
associated with its Pilot Steel operations located in Pompano Beach, Florida. The purchase price is
subject to an adjustment to be determined based upon the closing working capital balance and may be
further adjusted if Ivy does not comply with certain obligations contained in the purchase
agreement. The cash portion of the purchase price was funded from cash and cash equivalents on
hand.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;The addition of Ivy&#146;s facilities to our existing geographic footprint enhances Insteel&#146;s
competitiveness in the Northeast, Midwest and Florida markets in addition to providing a platform
to serve west coast markets more effectively,&#148; commented H.O. Woltz III, Insteel
president and chief executive officer. &#147;We expect that the integration of Ivy will result in
enhanced customer service capabilities and significantly lower operating costs.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>About Insteel</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Insteel is one of the nation&#146;s largest manufacturers of steel wire reinforcing products for
concrete construction applications. Insteel manufactures and markets PC strand and welded wire
reinforcement, including concrete pipe reinforcement, engineered structural mesh (&#147;ESM&#148;) and
standard welded wire reinforcement. Insteel&#146;s products are sold primarily to manufacturers of
concrete products that are used in nonresidential construction. Headquartered in Mount Airy, North
Carolina, Insteel operates six manufacturing facilities located in the United States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Cautionary Note Regarding Forward-Looking Statements</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This news release contains forward-looking statements within the meaning of the safe harbor
provisions
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">(MORE)
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>1373 BOGGS DRIVE / MOUNT AIRY, NORTH CAROLINA 27030 / 336-786-2141/ FAX 336-786-2144</B>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Page 2 of 2
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of the Private Securities Litigation Reform Act of 1995. When used in this news release, the words
&#147;believes,&#148; &#147;anticipates,&#148; &#147;expects,&#148; &#147;estimates,&#148; &#147;plans,&#148; &#147;intends,&#148; &#147;may,&#148; &#147;should&#148; and similar
expressions are intended to identify forward-looking statements. Although Insteel believes that
its plans, intentions and expectations reflected in or suggested by such forward-looking statements
are reasonable, such forward-looking statements are subject to a number of risks and uncertainties,
and Insteel can provide no assurances that such plans, intentions or expectations will be achieved.
Many of these risks and uncertainties are discussed in detail in Insteel&#146;s periodic and other
reports and statements that it files with the U.S. Securities and Exchange Commission (the &#147;SEC&#148;),
in particular in its Annual Report on Form 10-K for the year ended October&nbsp;3, 2009. You should
carefully review these risks and uncertainties.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All forward-looking statements attributable to Insteel or persons acting on its behalf are
expressly qualified in their entirety by these cautionary statements. All forward-looking
statements speak only to the respective dates on which such statements are made and Insteel does
not undertake and specifically declines any obligation to publicly release the results of any
revisions to these forward-looking statements that may be made to reflect any future events or
circumstances after the date of such statements or to reflect the occurrence of anticipated or
unanticipated events, except as may be required by law.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">It is not possible to anticipate and list all risks and uncertainties that may affect Insteel&#146;s
future operations or financial performance; however, they include, but are not limited to, the
following: potential difficulties that may be encountered in integrating the Ivy Acquisition into
Insteel&#146;s existing business; potential difficulties in realizing synergies with respect to the Ivy
Acquisition; competitive and customer responses to Insteel&#146;s expanded business; general economic
and competitive conditions in the markets in which Insteel operates; credit market conditions and
the relative availability of financing to Insteel, its customers and the construction industry as a
whole; the continuation of reduced spending for nonresidential construction, particularly
commercial construction, and the impact on demand for Insteel&#146;s products; the timing of the
resolution of a new multi-year federal transportation funding authorization and the magnitude of
the infrastructure-related funding provided for that requires the use of Insteel&#146;s products; the
severity and duration of the downturn in residential construction and the impact on those portions
of Insteel&#146;s business that are correlated with the housing sector; the cyclical nature of the steel
and building material industries; fluctuations in the cost and availability of Insteel&#146;s primary
raw material, hot-rolled steel wire rod, from domestic and foreign suppliers; competitive pricing
pressures and Insteel&#146;s ability to raise selling prices in order to recover increases in wire rod
costs; changes in U.S. or foreign trade policy affecting imports or exports of steel wire rod or
Insteel&#146;s products; unanticipated changes in customer demand, order patterns and inventory levels;
the impact of weak demand and reduced capacity utilization levels on Insteel&#146;s unit manufacturing
costs; Insteel&#146;s ability to further develop the market for engineered structural mesh (&#147;ESM&#148;) and
expand its shipments of ESM; legal, environmental, economic or regulatory developments that
significantly impact Insteel&#146;s operating costs; unanticipated plant outages, equipment failures or
labor difficulties; continued escalation in certain of Insteel&#146;s operating costs; and the other
risks and uncertainties discussed in Insteel&#146;s Annual Report on Form 10-K for the year ended
October&nbsp;3, 2009 and in other filings made by Insteel with the SEC.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">###
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT style="FONT-variant: SMALL-CAPS"><B>Insteel Industries, Inc.</B></FONT>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>



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