Document:

Exhibit 4.1

Exhibit 4.1

TAX BENEFITS PRESERVATION RIGHTS AGREEMENT

DATED AS OF MARCH 3, 2011

BY AND BETWEEN

CAPITAL TRUST, INC.

AND

AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	Section 1. Certain Definitions
	 	 	1	 
	 
	 	 	 	 
	Section 2. Appointment of Rights Agent
	 	 	7	 
	 
	 	 	 	 
	Section 3. Issue of Right Certificates
	 	 	8	 
	 
	 	 	 	 
	Section 4. Form of Right Certificates
	 	 	9	 
	 
	 	 	 	 
	Section 5. Countersignature and Registration
	 	 	10	 
	 
	 	 	 	 
	Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated, Destroyed, Lost or Stolen Right Certificates
	 	 	11	 
	 
	 	 	 	 
	Section 7. Exercise of Rights; Exercise Price; Expiration Date of Rights
	 	 	12	 
	 
	 	 	 	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	14	 
	 
	 	 	 	 
	Section 9. Reservation and Availability of Preferred Stock
	 	 	14	 
	 
	 	 	 	 
	Section 10. Preferred Stock Record Date
	 	 	15	 
	 
	 	 	 	 
	Section 11. Adjustment of Exercise Price, Number and Kind of Shares or Number
of Rights
	 	 	16	 
	 
	 	 	 	 
	Section 12. Certificate of Adjusted Exercise Price or Number of Shares
	 	 	23	 
	 
	 	 	 	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	 	 	23	 
	 
	 	 	 	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	25	 
	 
	 	 	 	 
	Section 15. Rights of Action
	 	 	26	 
	 
	 	 	 	 
	Section 16. Agreement of Right Holders
	 	 	26	 
	 
	 	 	 	 
	Section 17. Right Certificate Holder Not Deemed a Stockholder
	 	 	27	 
	 
	 	 	 	 
	Section 18. Concerning the Rights Agent
	 	 	27	 
	 
	 	 	 	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	28	 
	 
	 	 	 	 
	Section 20. Duties of Rights Agent
	 	 	28	 
	 
	 	 	 	 

 

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	 	 	Page	 
	 
	 	 	 	 
	Section 21. Change of Rights Agent
	 	 	30	 
	 
	 	 	 	 
	Section 22. Issuance of New Right Certificates
	 	 	31	 
	 
	 	 	 	 
	Section 23. Redemption
	 	 	31	 
	 
	 	 	 	 
	Section 24. Exchange
	 	 	32	 
	 
	 	 	 	 
	Section 25. Notice of Certain Events
	 	 	34	 
	 
	 	 	 	 
	Section 26. Notices
	 	 	35	 
	 
	 	 	 	 
	Section 27. Supplements and Amendments
	 	 	35	 
	 
	 	 	 	 
	Section 28. Successors
	 	 	36	 
	 
	 	 	 	 
	Section 29. Determinations and Actions by the Board of Directors
	 	 	36	 
	 
	 	 	 	 
	Section 30. Benefits of this Agreement
	 	 	36	 
	 
	 	 	 	 
	Section 31. Severability
	 	 	36	 
	 
	 	 	 	 
	Section 32. Governing Law
	 	 	37	 
	 
	 	 	 	 
	Section 33. Counterparts
	 	 	37	 
	 
	 	 	 	 
	Section 34. Descriptive Headings
	 	 	37	 
	 
	 	 	 	 
	Section 35. Force Majeure
	 	 	37	 
	 
	 	 	 	 
	Exhibit A — Articles Supplementary for Series A Junior Participating
Preferred Stock
	 	 	 	 
	 
	 	 	 	 
	Exhibit B — Form of Right Certificate
	 	 	 	 
	 
	 	 	 	 

 

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TAX BENEFITS PRESERVATION RIGHTS AGREEMENT

This Tax Benefits Preservation Rights Agreement, dated as of March 3, 2011 (as it may be
amended from time to time as provided herein, the “Agreement”), is entered into by and
between Capital Trust, Inc., a Maryland corporation (the “Company”), and American Stock
Transfer & Trust Company, LLC, a New York limited liability trust company (the “Rights
Agent” which term shall include any successor Rights Agent hereunder). Capitalized terms
contained herein and not otherwise defined shall have the meanings ascribed to them in Section 1.

W I T N E S S E T H

WHEREAS, the Company has generated Tax Benefits (as defined in Section 1 hereof) for United
States federal income tax purposes, and as such Tax Benefits may potentially provide valuable tax
benefits to the Company, the Company desires to avoid an “ownership change” within the meaning of
Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”) and the Treasury
Regulations promulgated thereunder, and thereby preserve the ability to utilize fully such Tax
Benefits and, in furtherance of such objective, the Company desires to enter into this Agreement;

WHEREAS, the Board of Directors of the Company (“Board of Directors”) has authorized,
and the Company declared, a dividend distribution of one Right (as defined below) for each share of
Common Stock outstanding as of the Close of Business on March 14, 2011 (the “Record Date”),
and authorized the issuance of one Right for each share of Common Stock of the Company issued
between the Record Date and the earlier of the Distribution Date or the Expiration Date, each Right
initially representing the right to purchase one one-thousandth of a share of Series A Junior
Participating Preferred Stock of the Company having the rights, powers and preferences set forth on
Exhibit A hereto, upon the terms and subject to the conditions hereinafter set forth (the
“Rights”); and

WHEREAS, the Company desires to appoint the Rights Agent to act as rights agent hereunder, in
accordance with the terms and conditions hereof.

NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth,
the parties hereby agree as follows:

Section 1. Certain Definitions. For purposes of this Agreement, the following terms have the
meanings indicated:

“Acquiring Person” shall mean any Person who or which, together with all Affiliates
and Associates of such Person, shall be the Beneficial Owner of 4.9% or more of the shares of
Common Stock of the Company then outstanding, but shall not include (i) the Company, (ii) any
Subsidiary of the Company, (iii) any employee benefit plan or compensation arrangement of the
Company or any Subsidiary of the Company, (iv) any Person holding shares of Common Stock of the
Company organized, appointed or established by the Company or any Subsidiary of the Company for or
pursuant to the terms of any such employee benefit plan or compensation arrangement (the Persons
described in clauses (i) through (iv) above are referred to herein as “Exempt Persons”), or
(v) any Grandfathered Person, unless such Grandfathered Person becomes the Beneficial Owner of a
percentage of the shares of Common Stock of the Company then outstanding equal to or exceeding such
Grandfathered Person’s
Grandfathered Percentage (at which such time such Grandfathered Person shall be deemed an
“Acquiring Person”).

 

 

 

Notwithstanding the foregoing, no Person shall become an “Acquiring Person” (i) as the result
of an acquisition by the Company of Common Stock of the Company which, by reducing the number of
shares outstanding, increases the proportionate number of shares Beneficially Owned by such Person
to 4.9% (or in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such
Grandfathered Person) or more of the shares of Common Stock of the Company then outstanding;
provided, however, that if a Person shall become the Beneficial Owner of 4.9% (or
in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such
Grandfathered Person) or more of the shares of Common Stock of the Company then outstanding by
reason of share purchases by the Company and shall, after such share purchases by the Company,
become the Beneficial Owner of any additional shares (other than pursuant to a stock split, stock
dividend or similar transaction) of Common Stock of the Company and immediately thereafter be the
Beneficial Owner of 4.9% (or in the case of a Grandfathered Person, the Grandfathered Percentage
applicable to such Grandfathered Person) or more of the shares of Common Stock of the Company then
outstanding, then such Person shall be deemed to be an “Acquiring Person,” (ii) who becomes the
Beneficial Owner of 4.9% or more of the outstanding shares of Common Stock as a result of the
acquisition of shares of Common Stock directly from the Company, as long as, prior to the
acquisition of shares of Common Stock directly from the Company, the Company has been apprised in
writing by any such Person of the number of shares of Common Stock Beneficially Owned by such
Person immediately prior to any such acquisition; provided, however, that if a
Person shall become the Beneficial Owner of 4.9% or more of the shares of Common Stock then
outstanding as a result of a direct purchase from the Company and shall, after that date, acquire
one or more additional shares of the Company’s Common Stock without the prior written consent of
the Company and shall then Beneficially Own more than 4.9% of the shares of Common Stock then
outstanding, then such Person shall be deemed to be an “Acquiring Person;” (iii) who becomes a
Beneficial Owner of 4.9% or more of the shares of Common Stock then outstanding and whose
Beneficial Ownership would not, as determined by the Board of Directors in its sole discretion,
jeopardize or endanger the availability to the Company of its Tax Benefits (a “Board Exempt
Person”); provided further, however, that if a Person is not an
Acquiring Person solely by reason of clause (iii) above, then such Person shall cease to be a Board
Exempt Person if (A) such Person ceases to Beneficially Own 4.9% or more of the shares of the then
outstanding Common Stock or (B) the Board of Directors, in its sole discretion, makes a contrary
determination with respect to the effect of such Person’s Beneficial Ownership with respect to the
availability to the Company of its Tax Benefits; and (iv) by virtue of the exercise (whether
partially or in full) of “Warrant No. 1,” issued by the Company on March 16, 2009 to JPMorgan Chase
Funding, Inc. to purchase (prior to any adjustments) 2,034,665 shares of the Company’s Common Stock
(“Warrant No. 1.”); provided, however, that if a Person shall become the Beneficial
Owner of 4.9% or more of the shares of Common Stock then outstanding as a result of the exercise of
Warrant No. 1 and shall, after that date, acquire one or more additional shares of the Company’s
Common Stock (other than through the full or partial exercise of Warrant No. 1) without the prior
written consent of the Company and shall then Beneficially Own more than 4.9% of the shares of
Common Stock then outstanding, then such Person shall be deemed to be an “Acquiring Person.”

In addition, notwithstanding the foregoing, and notwithstanding anything to the contrary
provided in this Agreement including without limitation in Sections 1, 3(a) or 27, a Person shall
not be an “Acquiring Person” if the Board of Directors determines at any time that a Person who
would otherwise be an “Acquiring Person,” has become such inadvertently without intending to become
an
“Acquiring Person,” and such Person divests (without exercising or retaining any power,
including, voting power, with respect to such securities) as promptly as practicable (or within
such period of time as the Board of Directors determines is reasonable) a sufficient number of
shares of Common Stock of the Company so that such Person would no longer be an “Acquiring Person.”

 

2

 

“Adjustment Shares” shall have the meaning set forth in Section 11(a)(ii) hereof.

“Affiliate” and “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the General Rules and Regulations (the “Rules”) under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in effect on the date
of this Agreement; and to the extent not included within the foregoing, shall also include with
respect to any Person, any other Person whose shares of Common Stock of the Company would be deemed
to be constructively owned by such Person, owned by a “single entity” as defined in Section
1.382-3(a)(1) of the Treasury Regulations, or otherwise aggregated with shares owned by such first
Person, pursuant to the provisions of the Code, or any successor or replacement provision, and the
Treasury Regulations thereunder; provided, however, that a Person shall not be
deemed to be the Affiliate or Associate of another Person solely because either or both Persons are
or were directors of the Company.

A Person shall be deemed the “Beneficial Owner” of, and shall be deemed to
“Beneficially Own” and have “Beneficial Ownership” of (or any derivative of such
phrases), any securities:

(i) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has the right to acquire (whether such right is exercisable immediately or only after
the passage of time) pursuant to any agreement, arrangement or understanding (whether or not in
writing) (including any purchase orders for shares of Common Stock initiated prior to the first
public announcement of the adoption of this Plan) or upon the exercise of conversion rights,
exchange rights, warrants, options, or other rights (in each case, other than upon exercise or
exchange of the Rights); provided, however, that a Person shall not be deemed the
Beneficial Owner of, or to Beneficially Own securities (including rights, options or warrants)
which are convertible or exchangeable into or exercisable for Common Stock until such time as such
securities are converted or exchanged into or exercised for Common Stock except to the extent the
acquisition or transfer of such rights, options or warrants would be treated as exercised on the
date of its acquisition or transfer under Section 1.382-4(d) of the Treasury Regulations;
provided, further, that a Person shall not be deemed the Beneficial Owner of, or to
Beneficially Own, securities tendered pursuant to a tender or exchange offer made by such Person or
any of such Person’s Affiliates or Associates until such tendered securities are accepted for
purchase or exchange;

(ii) which such Person or any of such Person’s Affiliates or Associates, directly or
indirectly, has or shares the right to vote or dispose of, or has “beneficial ownership” of (as
defined under Rule 13d-3 of the Rules), including pursuant to any agreement, arrangement or
understanding (whether or not in writing), but only if the effect of such agreement, arrangement or
understanding is to treat such Person or any of such Person’s Affiliates or Associates as an
“entity” under Section 1.382-3(a)(1) of the Treasury Regulations; or

 

3

 

(iii) of which any other Person is the Beneficial Owner, if such Person or any of such
Person’s Affiliates or Associates has any agreement, arrangement or understanding (whether or not
in writing) with such other Person (or any of such other Person’s Affiliates or Associates) with
respect to acquiring, holding, voting or disposing of such securities of the Company, but only if
the effect of such agreement, arrangement or understanding is to treat such Person or any of such
Person’s Affiliates or Associates as an “entity” under Section 1.382-3(a)(1) of the Treasury
Regulations; provided, however, that a Person shall not be deemed the Beneficial
Owner of, or to Beneficially Own, any security (A) if such Person has the right to vote such
security pursuant to an agreement, arrangement or understanding (whether or not in writing) which
(1) arises solely from a revocable proxy or consent given to such Person in response to a public
proxy or consent solicitation made pursuant to, and in accordance with, the applicable rules and
regulations promulgated under the Exchange Act and (2) is not also then reportable on Schedule 13D
or Schedule 13G under the Exchange Act (or any comparable or successor report), or (B) if such
Beneficial Ownership arises solely as a result of such Person’s status as a “clearing agency,” as
defined in Section 3(a)(23) of the Exchange Act; provided, further, that nothing in
this definition shall cause a Person engaged in business as an underwriter of securities or member
of a selling group to be the Beneficial Owner of, or to Beneficially Own, any securities acquired
through such Person’s participation in good faith in an underwriting syndicate or selling group
until the expiration of 40 calendar days after the date of such acquisition, or such later date as
the Board may determine in any specific case.

Notwithstanding anything herein to the contrary, to the extent not within the foregoing
provisions of this definition, a Person shall be deemed the Beneficial Owner of, and shall be
deemed to Beneficially Own or have Beneficial Ownership of, securities which such Person would be
deemed to constructively own or which otherwise would be aggregated with shares owned by such
Person pursuant to Section 382 of the Code, or any successor provision or replacement provision and
the Treasury Regulations thereunder.

“Board Exempt Person” shall have the meaning set forth in the definition of “Acquiring
Person.”

“Business Day” shall mean any day other than a Saturday, Sunday, or a day on which
banking institutions in the State of New York are authorized or obligated by law or executive order
to close.

“Charter” when used in reference to the Company shall mean the charter of the Company,
as may be amended or supplemented from time to time, of the Company.

“Close of Business” on any given date shall mean 5:00 p.m., New York, New York time,
on such date; provided, however, that if such date is not a Business Day it shall
mean 5:00 p.m., New York, New York time, on the next succeeding Business Day.

“Code” shall have the meaning set forth in the preamble to this Agreement.

“Common Stock” when used in reference to the Company shall mean the Class A Common
Stock, par value $0.01 per share, of the Company or any other shares of capital stock of the
Company into which such stock shall be reclassified or changed. “Common Stock” when used with
reference to any Person other than the Company organized in corporate form shall mean (i) the
capital
stock or other equity interest of such Person with the greatest voting power, (ii) the equity
securities or other equity interest having power to control or direct the management of such Person
or (iii) if such Person is a Subsidiary of another Person, the Person or Persons which ultimately
control such first-mentioned Person and which have issued any such outstanding capital stock,
equity securities or equity interest. “Common Stock” when used with reference to any Person not
organized in corporate form shall mean units of beneficial interest which (x) shall represent the
right to participate generally in the profits and losses of such Person (including without
limitation any flow-through tax benefits resulting from an ownership interest in such Person) and
(y) shall be entitled to exercise the greatest voting power of such Person or, in the case of a
limited partnership, shall have the power to remove or otherwise replace the general partner or
partners.

 

4

 

“Common Stock Equivalents” shall have the meaning set forth in Section 11(a)(iii)
hereof.

“Current Value” shall have the meaning set forth in Section 11(a)(iii) hereof.

“Definitive Acquisition Agreement” shall mean any agreement entered into by the
Company that is conditioned on the approval by the holders of not less than a majority of the
outstanding shares of Common Stock entitled to vote at a meeting of the stockholders called with
respect to (i) a merger, consolidation, recapitalization, reorganization, share exchange, business
combination or similar transaction involving the Company or (ii) the acquisition in any manner,
directly or indirectly, of more than 50% of the consolidated total assets (including, without
limitation, equity securities of its subsidiaries) or earning power of the Company.

“Depositary Agent” shall have the meaning set forth in Section 7(c) hereof.

“Distribution Date” shall have the meaning set forth in Section 3(a) hereof.

“Exchange Date” shall have the meaning set forth in Section 7(a) hereof.

“Equity Compensation Plan Shares” shall have the meaning set forth in the definition
of “Grandfathered Percentage.”

“Exempt Person” shall have the meaning set forth in the definition of “Acquiring
Person.”

“Exercise Price” shall mean, as of any date, the price at which a holder may purchase
securities issuable upon exercise of one whole Right. Until adjustment thereof in accordance with
the terms hereof, the Exercise Price shall equal $6.00.

“Expiration Date” and “Final Expiration Date” shall have the meanings set
forth in Section 7(a) hereof.

“Fair Market Value” of any securities or other property shall be as determined in
accordance with Section 11(d) hereof.

 

5

 

“Grandfathered Percentage” shall mean, with respect to any Grandfathered Person, the
percentage of the outstanding shares of Common Stock of the Company that such Grandfathered Person,
together with all Affiliates and Associates of such Grandfathered Person, Beneficially Owns as
of the Grandfathered Time, plus (i) an additional 1/4% and (ii) any shares of Common Stock issued
to a Grandfathered Person pursuant to the Company’s equity compensation plans (“Equity Compensation
Plan Shares”); provided, however, that, in the event any Grandfathered Person shall
sell, transfer, or otherwise dispose of any outstanding shares of Common Stock of the Company after
the Grandfathered Time, the Grandfathered Percentage shall, subsequent to such sale, transfer or
disposition, mean, with respect to such Grandfathered Person, the lesser of (i) the Grandfathered
Percentage as in effect immediately prior to such sale, transfer or disposition or (ii) the
percentage of outstanding shares of Common Stock of the Company that such Grandfathered Person
Beneficially Owns immediately following such sale, transfer or disposition, plus (a) an additional
1/4% and (b) any Equity Compensation Plan Shares granted to such Grandfathered Person subsequent to
such sale, transfer or disposition.

“Grandfathered Person” shall mean any Person who or which, together with all
Affiliates and Associates of such Person, is, as of the Grandfathered Time, the Beneficial Owner of
4.9% or more of the shares of Common Stock of the Company then outstanding. Notwithstanding
anything to the contrary provided in this Agreement, any Grandfathered Person who after the
Grandfathered Time becomes the Beneficial Owner of less than 4.9% of the shares of Common Stock of
the Company then outstanding shall cease to be a Grandfathered Person and shall be subject to all
of the provisions of this Agreement in the same manner as any Person who is not and was not a
Grandfathered Person.

“Grandfathered Time” shall mean 5:00 p.m., New York, New York time, on March 3, 2011.

“Group” shall have the meaning set forth in clause (b) of the definition of “Person.”

“Person” shall mean (a) an individual, a corporation, a partnership, a limited
liability company, an association, a joint stock company, a trust, a business trust, a government
or political subdivision, any unincorporated organization, or any other association or entity
including any successor (by merger or otherwise) thereof or thereto, and (b) a “group” as that term
is used for purposes of Section 13(d)(3) of the Exchange Act.

“Preferred Stock” shall mean shares of Series A Junior Participating Preferred Stock,
par value $0.01 per share, of the Company having the rights and preferences set forth in the form
of the articles supplementary attached hereto as Exhibit A.

“Preferred Stock Equivalents” shall have the meaning set forth in Section 11(b)
hereof.

“Principal Party” shall have the meaning set forth in Section 13(b) hereof.

“Record Date” shall have the meaning set forth in the Preamble of this Agreement.

“Redemption Date” shall have the meaning set forth in Section 7(a) hereof.

“Redemption Price” shall have the meaning set forth in Section 23 hereof.

“Registered Common Stock” shall have the meaning set forth in Section 13(b) hereof.

 

6

 

“Rights” shall have the meaning set forth in the Preamble of this Agreement.

“Right Certificates” shall have the meaning set forth in Section 3(a) hereof.

“Section 11(a)(ii) Event” shall have the meaning set forth in Section 11(a)(ii)
hereof.

“Section 11(a)(ii) Trigger Date” shall have the meaning set forth in Section
11(a)(iii) hereof.

“Section 13 Event” shall mean any event described in clauses (x), (y) or (z) of
Section 13(a) hereof.

“Section 24(a)(i) Exchange Ratio” shall have the meaning set forth in Section 24(a)(i)
hereof.

“Section 24(a)(ii) Exchange Ratio” shall have the meaning set forth in Section
24(a)(ii) hereof.

“Securities Act” shall mean the Securities Act of 1933, as amended.

“Spread” shall have the meaning set forth in Section 11(a)(iii) hereof.

“Stock Acquisition Date” shall mean the date of the first public announcement (which
for purposes of this definition shall include, without limitation, the issuance of a press release
or the filing of a publicly-available report or other document with the Securities and Exchange
Commission or any other governmental agency) by the Company, acting pursuant to a resolution
adopted by the Board of Directors, or by an Acquiring Person, subject in each case to the last
paragraph of the definition of “Acquiring Person,” that an Acquiring Person has become such
Acquiring Person.

“Subsidiary” shall mean, with reference to any Person, any corporation or other entity
of which securities or other ownership interests having ordinary voting power sufficient, in the
absence of contingencies, to elect a majority of the board of directors or other persons performing
similar functions of such corporation or other entity are at the time directly or indirectly
Beneficially Owned or otherwise controlled by such Person either alone or together with one or more
Affiliates of such Person.

“Substitution Period” shall have the meaning set forth in Section 11(a)(iii) hereof.

“Tax Benefits” shall mean the net operating loss carryovers, capital loss carryovers,
general business credit carryovers, alternative minimum tax credit carryovers, foreign tax credit
carryovers, any loss or deduction attributable to a “net unrealized built-in loss” within the
meaning of Section 382 of the Code, and the Treasury Regulations promulgated thereunder, of the
Company or any of its Subsidiaries.

“Triggering Event” shall mean any Section 11(a)(ii) Event or any Section 13 Event.

Section 2. Appointment of Rights Agent. The Company hereby appoints the Rights Agent to act
as agent for the Company in accordance with the terms and conditions hereof, and the Rights Agent
hereby accepts such appointment. The Company may from time to time appoint such Co-Rights Agents
as it may deem necessary or desirable. In the event the Company appoints one or more
Co-Rights Agents, the respective duties of the Rights Agent and any Co-Rights Agents shall be as
the Company shall determine. The Company shall give ten (10) days’ prior written notice to the
Rights Agent of the appointment of one or more Co-Rights Agents and the respective duties of the
Rights Agent and any such Co-Rights Agents. The Rights Agent shall have no duty to supervise, and
shall in no event be liable for, the acts or omissions of any such Co-Rights Agent.

 

7

 

Section 3. Issue of Right Certificates.

(a) From the date hereof until the earlier of (i) the Close of Business on the tenth calendar
day after the Stock Acquisition Date or (ii) the Close of Business on the tenth Business Day (or
such later calendar day, if any, as the Board of Directors may determine in its sole discretion)
after the date a tender or exchange offer by any Person, other than an Exempt Person, is first
published or sent or given within the meaning of Rule 14d-4(a) of the Exchange Act, or any
successor rule, if, upon consummation thereof, such Person could become the Beneficial Owner of
4.9% (or in the case of a Grandfathered Person, the Grandfathered Percentage applicable to such
Grandfathered Person) or more of the shares of Common Stock of the Company then outstanding
(including any such date which is after the date of this Agreement and prior to the issuance of the
Rights) (the earliest of such dates being herein referred to as the “Distribution Date”),
(x) the Rights will be evidenced (subject to the provisions of Section 3(b) hereof) by the
certificates for the Common Stock of the Company registered in the names of the holders of the
Common Stock of the Company (which certificates for Common Stock of the Company shall be deemed
also to be certificates for Rights) and not by separate certificates, and (y) the Rights will be
transferable only in connection with the transfer of the underlying shares of Common Stock of the
Company. As soon as practicable after the Distribution Date, the Rights Agent will, at the
Company’s expense send, by first-class, insured, postage prepaid mail, to each record holder of the
Common Stock of the Company as of the Close of Business on the Distribution Date, at the address of
such holder shown on the records of the Company, one or more certificates, in substantially the
form of Exhibit B hereto (the “Right Certificates”), evidencing one Right for each
share of Common Stock of the Company so held, subject to adjustment as provided herein. In the
event that an adjustment in the number of Rights per share of Common Stock of the Company has been
made pursuant to Section 11(o) hereof, the Company may make the necessary and appropriate rounding
adjustments (in accordance with Section 14(a) hereof) at the time of distribution of the Right
Certificates, so that Right Certificates representing only whole numbers of Rights are distributed
and cash is paid in lieu of any fractional Rights. As of and after the Close of Business on the
Distribution Date, the Rights will be evidenced solely by such Right Certificates.

(b) With respect to certificates for Common Stock of the Company issued prior to the Close of
Business on the Record Date, the Rights will be evidenced by such certificates for the Common Stock
of the Company on or until the Distribution Date (or the earlier redemption, expiration or
termination of the Rights), and the registered holders of the Common Stock of the Company also
shall be the registered holders of the associated Rights. Until the Distribution Date (or the
earlier redemption, expiration or termination of the Rights), the transfer of any of the
certificates for the Common Stock of the Company outstanding prior to the date of this Agreement
shall also constitute the transfer of the Rights associated with the Common Stock of the Company
represented by such certificate.

 

8

 

(c) Certificates for the Common Stock of the Company issued after the Record Date, but prior
to the earlier of the Distribution Date or the Expiration Date, shall be deemed also to be
certificates for Rights, and shall bear a legend, substantially in the form set forth below:

This certificate also evidences and entitles the holder hereof to certain Rights
as set forth in a Tax Benefits Preservation Rights Agreement between Capital Trust,
Inc. and American Stock Transfer & Trust Company, LLC (or any successor thereto), as
Rights Agent, dated as of March 3, 2011 as amended, restated, renewed, supplemented
or extended from time to time (the “Rights Agreement”), the terms of which
are hereby incorporated herein by reference and a copy of which is on file at the
principal offices of Capital Trust, Inc. and the stock transfer administration office
of the Rights Agent. Under certain circumstances, as set forth in the Rights
Agreement, such Rights will be evidenced by separate certificates and will no longer
be evidenced by this certificate. Capital Trust, Inc. may redeem the Rights at a
redemption price of $0.001 per Right, subject to adjustment, under the terms of the
Rights Agreement. Capital Trust, Inc. will mail to the holder of this certificate a
copy of the Rights Agreement, as in effect on the date of mailing, without charge
promptly after receipt of a written request therefor. Under certain circumstances,
Rights issued to or held by Acquiring Persons or any Affiliates or Associates thereof
(as defined in the Rights Agreement), and any subsequent holder of such Rights, may
become null and void. The Rights shall not be exercisable, and shall be void so long
as held, by a holder in any jurisdiction where the requisite qualification, if any,
to the issuance to such holder, or the exercise by such holder, of the Rights in such
jurisdiction shall not have been obtained or be obtainable.

With respect to such certificates containing the foregoing legend, the Rights associated with
the Common Stock of the Company represented by such certificates shall be evidenced by such
certificates alone until the earlier of the Distribution Date or the Expiration Date, and the
transfer of any of such certificates shall also constitute the transfer of the Rights associated
with the Common Stock of the Company represented by such certificates. In the event that the
Company purchases or acquires any shares of Common Stock of the Company after the Record Date but
prior to the Distribution Date, any Rights associated with such Common Stock of the Company shall
be deemed canceled and retired so that the Company shall not be entitled to exercise any Rights
associated with the shares of Common Stock of the Company which are no longer outstanding. The
failure to print the foregoing legend on any such certificate representing Common Stock of the
Company or any defect therein shall not affect in any manner whatsoever the application or
interpretation of the provisions of Section 7(e) hereof.

Section 4. Form of Right Certificates.

(a) The Right Certificates (and the forms of election to purchase shares and of assignment and
certificate to be printed on the reverse thereof) shall each be substantially in the form of
Exhibit B hereto and may have such marks of identification or designation and such legends,
summaries or endorsements printed thereon as the Company may deem appropriate and as are not
inconsistent with the provisions of this Agreement, or as may be required to comply with any
applicable law, rule or regulation or with any rule or regulation of any stock exchange on which
the Rights may from time to time be listed, or to conform to customary usage. The Right
Certificates shall be in a machine printable format and in a form reasonably satisfactory to the
Rights Agent. Subject to the provisions of Section 11 and Section 22 hereof, the Right
Certificates, whenever distributed, shall be dated as of the Record
Date, shall show the date of countersignature, and on their face shall entitle the holders
thereof to purchase such number of one one-thousandths of a share of Preferred Stock as shall be
set forth therein at the Exercise Price, but the number of such shares and the Exercise Price shall
be subject to adjustment as provided herein.

 

9

 

(b) Any Right Certificate issued pursuant to Section 3(a) or Section 22 hereof that represents
Rights Beneficially Owned by (i) an Acquiring Person or any Associate or Affiliate of an Acquiring
Person, (ii) a transferee of an Acquiring Person (or of any Associate or Affiliate of an Acquiring
Person) who becomes a transferee after the Acquiring Person becomes such, or (iii) a transferee of
an Acquiring Person (or of any such Associate or Affiliate) who becomes a transferee prior to or
concurrently with the Acquiring Person becoming such and receives such Rights pursuant to either
(A) a transfer (whether or not for consideration) from the Acquiring Person to holders of equity
interests in such Acquiring Person or to any Person with whom the Acquiring Person has any
continuing agreement, arrangement or understanding (whether or not in writing) regarding the
transferred Rights, the shares of Common Stock of the Company associated with such Rights or the
Company or (B) a transfer which the Board of Directors has determined is part of a plan,
arrangement or understanding which has as a primary purpose or effect the avoidance of Section 7(e)
hereof, and any Right Certificate issued pursuant to Section 6, Section 11 or Section 22 upon
transfer, exchange, replacement or adjustment of any other Right Certificate referred to in this
sentence, shall have deleted therefrom the second sentence of the existing legend on such Right
Certificate and in substitution therefor shall contain the following legend:

The Rights represented by this Right Certificate are or were Beneficially Owned by a
Person who was or became an Acquiring Person or an Affiliate or an Associate of an
Acquiring Person (as such terms are defined in the Rights Agreement). This Right
Certificate and the Rights represented hereby may become null and void under certain
circumstances as specified in Section 7(e) of the Rights Agreement.

The Company shall give notice to the Rights Agent promptly after it becomes aware of the
existence and identity of any Acquiring Person or any Associate or Affiliate thereof. The Company
shall instruct the Rights Agent in writing of the Rights which should be so legended. The failure
to print the foregoing legend on any such Right Certificate or any defect therein shall not affect
in any manner whatsoever the application or interpretation of the provisions of Section 7(e)
hereof.

Section 5. Countersignature and Registration.

(a) The Right Certificates shall be executed on behalf of the Company by its Chairman or Vice
Chairman of the Board of Directors, its President, any Vice President, Chief Executive Officer, its
Chief Operating Officer or its Chief Financial Officer, either manually or by facsimile signature,
and shall have affixed thereto the Company’s seal or a facsimile thereof which shall be attested to
by the Treasurer, any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company,
either manually or by facsimile signature. The Right Certificates shall be countersigned, either
manually or by facsimile signature, by an authorized signatory of the Rights Agent and shall not be
valid for any purpose unless so countersigned, and such countersignature upon any Right Certificate
shall be conclusive evidence, and the only evidence, that such Right Certificate has been duly
countersigned as required hereunder. In case any officer of the Company who shall have signed any
of the Right Certificates shall cease to be such officer of the Company before countersignature by
the
Rights Agent and issuance and delivery by the Company, such Right Certificates, nevertheless,
may be countersigned by an authorized signatory of the Rights Agent, and issued and delivered by
the Company with the same force and effect as though the person who signed such Right Certificates
had not ceased to be such officer of the Company; and any Right Certificates may be signed on
behalf of the Company by any person who, at the actual date of the execution of such Right
Certificate, shall be a proper officer of the Company to sign such Right Certificate, although at
the date of the execution of this Rights Agreement any such person was not such an officer.

 

10

 

(b) Following the Distribution Date, the Rights Agent will keep or cause to be kept, at one of
its offices designated as the appropriate place for surrender of Right Certificates upon exercise
or transfer, books for registration and transfer of the Right Certificates issued hereunder. Such
books shall show the names and addresses of the respective holders of the Right Certificates, the
number of Rights evidenced on its face by each of the Right Certificates and the date of each of
the Right Certificates.

Section 6. Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates.

(a) Subject to the provisions of Section 4(b), Section 7(e) and Section 14 hereof, at any time
after the Close of Business on the Distribution Date, and at or prior to the Close of Business on
the Expiration Date, any Right Certificate or Certificates may be transferred, split up, combined
or exchanged for another Right Certificate or Certificates, entitling the registered holder to
purchase a like number of one one-thousandths of a share of Preferred Stock (or following a
Triggering Event, Common Stock of the Company, cash, property, debt securities, Preferred Stock or
any combination thereof, including any such securities, cash or property following a Section 13
Event) as the Right Certificate or Certificates surrendered then entitled such holder to purchase
and at the same Exercise Price. Any registered holder desiring to transfer, split up, combine or
exchange any Right Certificate shall make such request in writing delivered to the Rights Agent,
and shall surrender the Right Certificate or Certificates to be transferred, split up, combined or
exchanged, with the form of assignment and certificate duly executed, at the office or offices of
the Rights Agent designated for such purpose. Neither the Rights Agent nor the Company shall be
obligated to take any action whatsoever with respect to the transfer of any such surrendered Right
Certificate until the registered holder shall have completed and signed the certificate contained
in the form of assignment on the reverse side of such Right Certificate and shall have provided
such additional evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof as the Company shall reasonably request. Thereupon the Rights
Agent shall, subject to Section 4(b), Section 7(e) and Section 14 hereof, countersign and deliver
to the Person entitled thereto a Right Certificate or Certificates, as the case may be, as so
requested. The Company may require payment by the registered holder of a Right Certificate, of a
sum sufficient to cover any tax or governmental charge that may be imposed in connection with any
transfer, split up, combination or exchange of Right Certificates.

(b) Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory to
them of the loss, theft, destruction or mutilation of a Right Certificate, and, in case of loss,
theft or destruction, of indemnity or security satisfactory to them, and reimbursement to the
Company and the Rights Agent of all reasonable expenses incidental thereto, and upon surrender to
the Rights Agent and cancellation of the Right Certificate, if mutilated, the Company will execute
and deliver a new Right Certificate of like tenor to the Rights Agent for countersignature and
delivery to the registered owner in lieu of the Right Certificate so lost, stolen, destroyed or
mutilated.

 

11

 

Section 7. Exercise of Rights; Exercise Price; Expiration Date of Rights.

(a) Subject to Section 7(e) hereof, the registered holder of any Right Certificate may
exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at
any time after the Distribution Date upon surrender of the Right Certificate, with the form of
election to purchase and the certificate on the reverse side thereof duly executed, to the Rights
Agent at the office or offices of the Rights Agent designated for such purpose, together with
payment of the aggregate Exercise Price for the total number of one one-thousandths of a share of
Preferred Stock (or other securities, cash or other assets, as the case may be) as to which such
surrendered Rights are then exercised, at or prior to the earliest of (i) the Close of Business on
the third anniversary of the Record Date (the “Final Expiration Date”), (ii) the time at
which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”) or
(iii) the time at which such Rights are exchanged as provided in Section 24 hereof (the
“Exchange Date”) (iv) the final adjournment of the Company’s 2011 annual meeting of
stockholders if stockholder approval of this Agreement has not been received prior to such time,
(v) the repeal of Section 382 of the Code or any successor statute if the Board determines that
this Plan is no longer necessary for the preservation of Tax Benefits, (vi) the beginning of a
taxable year of the Company with respect to which the Board determines that no Tax Benefits may be
carried forward, or (vii) such time as the Board determines that a limitation on the use of the Tax
Benefits under Section 382 of the Code would no longer be material to the Company (the earliest of
(i), through (vii) being herein referred to as the “Expiration Date”). The Board shall at least
annually consider whether to make the determination provided by Section 7(a)(vii) in light of all
relevant factors, including, in particular, the amount and anticipated utilization of the Company’s
Tax Benefits and the Company’s market capitalization. The Company shall promptly notify the Rights
Agent in writing upon the occurrence of the Expiration Date and, if such notification is given
orally, the Company shall confirm same in writing on or prior to the Business Day next following.
Until such notice is received by the Rights Agent, the Rights Agent may presume conclusively for
all purposes, prior to the Close of Business on March 14, 2014, that the Expiration Date has not
occurred. Except as set forth in Section 7(e) hereof and notwithstanding any other provision of
this Agreement, any Person who prior to the Distribution Date becomes a record holder of shares of
Common Stock of the Company is entitled to all of the rights of a registered holder of a Right
Certificate with respect to the Rights associated with such shares of Common Stock of the Company
in accordance with the provisions of this Agreement, as of the date such Person becomes a record
holder of shares of Common Stock of the Company.

(b) The Exercise Price shall be payable in lawful money of the United States of America in
accordance with Section 7(c) below.

(c) As promptly as practicable following the Distribution Date, the Company shall deposit with
a corporation, trust, bank or similar institution in good standing organized under the laws of the
United States or any State of the United States, which is authorized under such laws to exercise
corporate trust or stock transfer powers and is subject to supervision or examination by a federal
or state authority (such institution is hereinafter referred to as the “Depositary Agent”),
certificates representing the shares of Preferred Stock that may be acquired upon exercise of the
Rights and the Company shall cause such Depositary Agent to enter into an agreement pursuant to
which the Depositary Agent shall issue receipts representing interests in the shares of Preferred
Stock so deposited. Upon receipt of a Right Certificate representing exercisable Rights, with the
form of election to purchase and the certificate on the reverse side thereof duly executed,
accompanied by payment of the Exercise Price for the shares to be purchased and an amount equal to
any

 

12

 

applicable
transfer tax (as determined by the Rights Agent) by certified check or bank draft payable to the order of the Company or by money
order, the Rights Agent shall, subject to Section 20(k) and Section 14(b) hereof, thereupon
promptly (i) requisition from the Depositary Agent (or make available, if the Rights Agent is the
Depositary Agent) depositary receipts or certificates for the number of one one-thousandths of a
share of Preferred Stock to be purchased and the Company hereby irrevocably authorizes the
Depositary Agent to comply with all such requests, (ii) when appropriate, requisition from the
Company the amount of cash, if any, to be paid in lieu of issuance of fractional shares in
accordance with Section 14 hereof, (iii) promptly after receipt of such certificates or depositary
receipts, cause the same to be delivered to or upon the order of the registered holder of such
Right Certificate, registered in such name or names as may be designated by such holder and (iv)
when appropriate, after receipt of each certificate or depositary receipts promptly deliver such
cash to or upon the order of the registered holder of such Right Certificate. In the event that
the Company is obligated to issue other securities (including Common Stock of the Company) of the
Company, pay cash or distribute other property pursuant to Section 11(a) hereof, the Company will
make all arrangements necessary so that such other securities, cash or other property are available
for distribution by the Rights Agent, if and when appropriate. The payment of the Exercise Price
may be made by certified or bank check payable to the order of the Company, or by money order or
wire transfer of immediately available funds to the account of the Company (provided that notice of
such wire transfer shall be given by the holder of the related Right to the Rights Agent).

(d) In case the registered holder of any Right Certificate shall exercise less than all the
Rights evidenced thereby, a new Right Certificate evidencing Rights equivalent to the Rights
remaining unexercised shall be issued by the Rights Agent and delivered to the registered holder of
such Right Certificate or to his duly authorized assigns, subject to the provisions of Section 14
hereof.

(e) Notwithstanding anything in this Agreement to the contrary, from and after the first
occurrence of a Section 11(a)(ii) Event or Section 13 Event, any Rights Beneficially Owned by (i)
an Acquiring Person or any Associate or Affiliate of an Acquiring Person, (ii) a transferee of an
Acquiring Person (or of any Associate or Affiliate of an Acquiring Person) who becomes a transferee
after the Acquiring Person becomes such or (iii) a transferee of an Acquiring Person (or of any
Associate or Affiliate of an Acquiring Person) who becomes a transferee prior to or concurrently
with the Acquiring Person becoming such and receives such Rights pursuant to either (A) a transfer
(whether or not for consideration) from the Acquiring Person to holders of equity interests in such
Acquiring Person or to any Person with whom the Acquiring Person has any continuing agreement,
arrangement or understanding regarding the transferred Rights, the shares of Common Stock of the
Company associated with such Rights or the Company, or (B) a transfer which the Board of Directors
has determined is part of a plan, arrangement or understanding which has as a primary purpose or
effect the avoidance of this Section 7(e), shall be null and void without any further action and no
holder of such Rights shall have any rights whatsoever with respect to such Rights, whether under
any provision of this Agreement or otherwise. The Company shall use all reasonable efforts to
ensure that the provisions of this Section 7(e) and Section 4(b) hereof are complied with, but
shall have no liability to any holder of Right Certificates or other Person as a result of its
failure to make any determinations with respect to an Acquiring Person or any Affiliates or
Associates of an Acquiring Person or any transferee of any of them hereunder.

(f) Notwithstanding anything in this Agreement to the contrary, neither the Rights Agent nor
the Company shall be obligated to undertake any action with respect to a registered holder of
Rights upon the occurrence of any purported exercise as set forth in this Section 7 unless such
registered
holder shall have (i) completed and signed the certificate contained in the form of election
to purchase set forth on the reverse side of the Right Certificate surrendered for such exercise,
and (ii) provided such additional evidence of the identity of the Beneficial Owner (or former
Beneficial Owner) or Affiliates or Associates thereof as the Company shall reasonably request.

 

13

 

Section 8. Cancellation and Destruction of Right Certificates. All Right Certificates
surrendered for the purpose of exercise, transfer, split up, combination or exchange shall, if
surrendered to the Company or any of its agents, be delivered to the Rights Agent for cancellation
or in canceled form, or, if surrendered to the Rights Agent, shall be canceled by it, and no Right
Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions
of this Agreement. The Company shall deliver to the Rights Agent for cancellation and retirement,
and the Rights Agent shall so cancel and retire, any other Right Certificate purchased or acquired
by the Company otherwise than upon the exercise thereof. The Rights Agent shall deliver all
canceled Right Certificates to the Company, or shall, at the written request of the Company,
destroy such cancelled Rights Certificates, and in such case shall deliver a certificate of
destruction thereof to the Company.

Section 9. Reservation and Availability of Preferred Stock.

(a) The Company covenants and agrees that it will cause to be reserved and kept available out
of its authorized and unissued shares of preferred stock, the number of shares of Preferred Stock
that will be sufficient to permit the exercise in full of all outstanding and exercisable Rights.
Upon the occurrence of any events resulting in an increase in the aggregate number of shares of
Preferred Stock issuable upon exercise of all outstanding Rights in excess of the number then
reserved, the Company shall make appropriate increases in the number of shares so reserved.

(b) The Company shall use commercially reasonable efforts to cause, from and after such time
as the Rights become exercisable, all shares of Preferred Stock issued or reserved for issuance to
be listed, upon official notice of issuance, upon the principal national securities exchange, if
any, upon which the Common Stock of the Company is listed or, if the principal market for the
Common Stock of the Company is not on any national securities exchange, to be eligible for
quotation on such system as the Common Stock is then quoted.

(c) The Company shall use commercially reasonable efforts to (i) file, as soon as practicable
following the earliest date after the occurrence of a Section 11(a)(ii) Event on which the
consideration to be delivered by the Company upon exercise of the Rights has been determined in
accordance with Section 11(a)(iii) hereof, or as soon as required by law following the Distribution
Date, as the case may be, a registration statement under the Securities Act, with respect to the
securities purchasable upon exercise of the Rights on an appropriate form, (ii) cause such
registration statement to become effective as soon as practicable after such filing and (iii) cause
such registration statement to remain effective (with a prospectus that at all times meets the
requirements of the Securities Act) until the earlier of (A) the date as of which the Rights are no
longer exercisable for such securities or (B) the Expiration Date. The Company will also take such
action as may be appropriate under, and which will ensure compliance with, the securities or “blue
sky” laws of the various states in connection with the exercisability of the Rights. The Company
may temporarily suspend, for a period of time not to exceed one hundred twenty (120) days after the
date determined in accordance with the provisions of the first sentence of this Section 9(c), the
exercisability of the Rights in order to prepare and file such registration statement and permit it
to become effective. Upon such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended, as
well as a public announcement at such time as the suspension is no longer in effect, in each case
with prompt written notice to the Rights Agent. Notwithstanding any such provision of this
Agreement to the contrary, the Rights shall not be exercisable in any jurisdiction unless the
requisite qualification in such jurisdiction shall have been obtained.

 

14

 

(d) The Company covenants and agrees that it will take all such action as may be necessary to
ensure that all shares of Preferred Stock delivered upon the exercise of the Rights shall, at the
time of delivery of the certificates or depositary receipts for such shares (subject to payment of
the Exercise Price), be duly and validly authorized and issued and fully paid and nonassessable.

(e) The Company further covenants and agrees that it will pay when due and payable any and all
federal and state transfer taxes and charges which may be payable in respect of the issuance or
delivery of the Right Certificates or of any certificates for shares of Preferred Stock and/or
other property upon the exercise of Rights. The Company shall not, however, be required to pay any
transfer tax which may be payable in respect of any transfer or delivery of Right Certificates or
the issuance or delivery of other securities or property to a Person other than, or in respect of
the issuance or delivery of securities or other property in a name other than that of, the
registered holder of the Right Certificates evidencing Rights surrendered for exercise or to issue
or deliver any certificates for securities or other property in a name other than that of the
registered holder upon the exercise of any Rights until such tax shall have been paid (any such tax
being payable by the holder of such Right Certificate at the time of surrender) or until it has
been established to the Company’s satisfaction that no such tax is due.

Section 10. Preferred Stock Record Date. Each Person in whose name any certificate for
Preferred Stock or other securities (including any fraction of a share of Preferred Stock or such
other securities) is issued upon the exercise of Rights shall for all purposes be deemed to have
become the holder of record of the shares of Preferred Stock or such other securities represented
thereby on, and such certificate shall be dated, the date upon which the Right Certificate
evidencing such Rights was duly surrendered and payment of the Exercise Price (and any applicable
transfer taxes) was made; provided, however, that if the date of such surrender and
payment is a date upon which the transfer books of the Company for the Preferred Stock or such
other securities, as applicable, are closed, such Person shall be deemed to have become the record
holder of such shares of Preferred Stock or such other securities on, and such certificate shall be
dated, the next succeeding Business Day on which the transfer books of the Company are open; and
further provided, however, that if delivery of shares of Preferred Stock or such
other securities is delayed pursuant to Section 9(c) hereof, such Person shall be deemed to have
become the record holder of such shares of Preferred Stock or such other securities only when such
shares or such other securities first become deliverable. Prior to the exercise of the Right
evidenced thereby, the holder of a Right Certificate shall not be entitled to any rights of a
stockholder of the Company with respect to shares for which the Rights shall be exercisable,
including, without limitation, the right to vote, to receive dividends or other distributions or to
exercise any preemptive rights, and shall not be entitled to receive any notice of any proceedings
of the Company, except as provided herein.

 

15

 

Section 11. Adjustment of Exercise Price, Number and Kind of Shares or Number of Rights. The
Exercise Price, the number and kind of shares covered by each Right and the number of Rights
outstanding are subject to adjustment from time to time as provided in this Section 11.

(a) (i) In the event the Company shall at any time after the date of this Agreement (A)
declare a dividend on the Preferred Stock payable in shares of Preferred Stock, (B) subdivide the
outstanding Preferred Stock, (C) combine the outstanding Preferred Stock into a smaller number of
shares, or (D) issue, change or alter any shares of its stock in a reclassification or
recapitalization of the Preferred Stock (including any such reclassification or recapitalization in
connection with a consolidation or merger in which the Company is the continuing or surviving
Person), except as otherwise provided in this Section 11(a) and Section 7(e) hereof, the Exercise
Price in effect at the time of the record date for such dividend or the effective time of such
subdivision, combination, reclassification or recapitalization, and the number and kind of shares
of stock issuable on such date or at such time, shall be proportionately adjusted so that the
holder of any Right exercised after such time shall be entitled to receive the aggregate number and
kind of shares of stock which, if such Right had been exercised immediately prior to such date and
at a time when the Preferred Stock transfer books of the Company were open, such holder would have
owned upon such exercise and been entitled to receive by virtue of such dividend, subdivision,
combination, reclassification or recapitalization; provided, however, that in no
event shall the consideration to be paid upon the exercise of a Right be less than the aggregate
par value of the shares of stock of the Company issuable upon exercise of a Right. If an event
occurs which would require an adjustment under both Section 11(a)(i) and Section 11(a)(ii) hereof,
the adjustment provided for in this Section 11(a)(i) shall be in addition to, and shall be made
prior to, any adjustment required pursuant to Section 11(a)(ii) hereof.

(ii) Subject to the provisions of Section 24 hereof, in the event any Person, alone or
together with its Affiliates and Associates, shall become an Acquiring Person, then, promptly
following any such occurrence (a “Section 11(a)(ii) Event”), proper provision shall be made
so that each holder of a Right, except as provided in Section 7(e) hereof, shall thereafter have a
right to receive, upon exercise thereof at the then current Exercise Price in accordance with the
terms of this Agreement, in lieu of a number of one one-thousandths of a share of Preferred Stock,
such number of shares of Common Stock of the Company as shall equal the result obtained by (x)
multiplying the then current Exercise Price by the then number of one one-thousandths of a share of
Preferred Stock for which a Right was exercisable immediately prior to the first occurrence of a
Section 11(a)(ii) Event, whether or not such Right was then exercisable, and dividing that product
by (y) 50% of the Fair Market Value per share of Common Stock of the Company (determined pursuant
to Section 11(d)) on the date of the occurrence of a Section 11(a)(ii) Event (such number of shares
being referred to as the “Adjustment Shares”).

(iii) In lieu of issuing any shares of Common Stock of the Company in accordance with Section
11(a)(ii) hereof, the Company, acting by or pursuant to a resolution of the Board of Directors,
may, and in the event that the number of shares of Common Stock of the Company which are authorized
by the Company’s Charter but not outstanding or reserved for issuance for purposes other than upon
exercise of the Rights is not sufficient to permit the exercise in full of the Rights in accordance
with the foregoing subparagraph (ii) of this Section 11(a), the Company, acting by or pursuant to a
resolution of the Board of Directors, shall: (A) determine the excess of (X) the Fair Market Value
of the Adjustment Shares issuable upon the exercise of a Right (the “Current Value”) over
(Y) the Exercise Price attributable to each Right (such excess being referred to as the
“Spread”) and (B) with respect to all or a portion of each Right (subject to Section 7(e)
hereof), make adequate provision to substitute for the Adjustment Shares, upon payment of the
applicable Exercise Price, (1) Common Stock of the Company or equity securities, if any, of the
Company other than Common Stock of the Company (including without limitation shares, or units of
shares, of preferred stock, such as the Preferred

 

16

 

 Stock, that the Board of Directors has determined to have the same value as shares of Common Stock
of the Company (such shares of preferred stock being referred to herein as “Common Stock
Equivalents”)), (2) cash, (3) a reduction in the Exercise Price, (4) Preferred Stock
Equivalents which the Board of Directors has deemed to have the same value as shares of Common
Stock of the Company, (5) debt securities of the Company, (6) other assets or securities of the
Company or (7) any combination of the foregoing, having an aggregate value equal to the Current
Value, where such aggregate value has been determined by the Board of Directors after receiving the
advice of a nationally recognized investment banking firm selected by the Board of Directors;
provided, however, that if the Company shall not have made adequate provision to
deliver value pursuant to clause (B) above within thirty (30) days following the later of (x) the
first occurrence of a Section 11(a)(ii) Event and (y) the date on which the Company’s right of
redemption pursuant to Section 23(a) expires (the later of (x) and (y) being referred to herein as
the “Section 11(a)(ii) Trigger Date”), then the Company shall be obligated to deliver, upon
the surrender for exercise of a Right and without requiring payment of the Exercise Price, shares
of Common Stock of the Company (to the extent available) and then, if necessary, cash, which shares
and/or cash have an aggregate value equal to the Spread. If the Board of Directors shall determine
in good faith that it is likely that sufficient additional shares of Common Stock of the Company
could be authorized for issuance upon exercise in full of the Rights, the 30-day period set forth
above may be extended to the extent necessary, but not more than ninety (90) days after the Section
11(a)(ii) Trigger Date, in order that the Company may seek stockholder approval for the
authorization of such additional shares (such period, as it may be extended, being referred to
herein as the “Substitution Period”). To the extent that the Company determines that some
action need be taken pursuant to the first and/or second sentences of this Section 11(a)(iii), the
Company (x) shall provide, subject to Section 7(e) hereof, that such action shall apply uniformly
to all outstanding Rights and (y) may suspend the exercisability of the Rights until the expiration
of the Substitution Period in order to seek any authorization of additional shares and/or to decide
the appropriate form of distribution to be made pursuant to such first sentence and to determine
the value thereof. In the event of any such suspension, the Company shall issue a public
announcement stating that the exercisability of the Rights has been temporarily suspended and a
public announcement at such time as the suspension is no longer in effect. For purposes of this
Section 11(a)(iii), the value of the Common Stock of the Company and of the Preferred Stock shall
be the Fair Market Value (as determined pursuant to Section 11(d) hereof) per share of the Common
Stock of the Company and the Preferred Stock, respectively, on the Section 11(a)(ii) Trigger Date,
the value of any Common Stock Equivalent shall be deemed to have the same value as the Common Stock
of the Company on such date and the value of any Preferred Stock Equivalent shall be deemed to have
the same value as the Preferred Stock on such date.

(b) If the Company shall fix a record date for the issuance of rights, options or warrants to
all holders of Preferred Stock entitling them (for a period expiring within forty-five (45)
calendar days after such record date) to subscribe for or purchase Preferred Stock (or securities
having the same or more favorable rights, privileges and preferences as the shares of Preferred
Stock (“Preferred Stock Equivalents”)) or securities convertible into Preferred Stock or
Preferred Stock Equivalents at a price per share of Preferred Stock or per share of Preferred Stock
Equivalents (or having a conversion price per share, if a security convertible into Preferred Stock
or Preferred Stock Equivalents) less than the Fair Market Value (as determined pursuant to Section
11(d) hereof) per share of Preferred Stock on such record date, the Exercise Price to be in effect
after such record date shall be determined by multiplying the Exercise Price in effect immediately
prior to such record date by a fraction, the numerator of which shall be the number of shares of
Preferred Stock outstanding on such record date, plus the number of shares of Preferred Stock which
the aggregate offering price of

 

17

 

 the
total number of shares of Preferred Stock and/or Preferred Stock Equivalents to be offered (and the
aggregate initial conversion price of the convertible securities so to be offered) would purchase
at such Fair Market Value and the denominator of which shall be the number of shares of Preferred
Stock outstanding on such record date, plus the number of additional shares of Preferred Stock and
Preferred Stock Equivalents to be offered for subscription or purchase (or into which the
convertible securities so to be offered are initially convertible); provided,
however, that in no event shall the consideration to be paid upon the exercise of a Right
be less than the aggregate par value of the shares of stock of the Company issuable upon exercise
of a Right. In case such subscription price may be paid in a consideration part or all of which
shall be in a form other than cash, the value of such consideration shall be the Fair Market Value
thereof determined in accordance with Section 11(d) hereof. Shares of Preferred Stock owned by or
held for the account of the Company shall not be deemed outstanding for the purpose of any such
computation. Such adjustments shall be made successively whenever such a record date is fixed; and
in the event that such rights or warrants are not so issued, the Exercise Price shall be adjusted
to be the Exercise Price which would then be in effect if such record date had not been fixed.

(c) If the Company shall fix a record date for the making of a distribution to all holders of
Preferred Stock (including any such distribution made in connection with a consolidation or merger
in which the Company is the continuing or surviving corporation), of evidences of indebtedness,
cash (other than a regular periodic cash dividend out of the earnings or retained earnings of the
Company), assets (other than a dividend payable in Preferred Stock, but including any dividend
payable in stock other than Preferred Stock) or convertible securities, subscription rights or
warrants (excluding those referred to in Section 11(b)), the Exercise Price to be in effect after
such record date shall be determined by multiplying the Exercise Price in effect immediately prior
to such record date by a fraction, the numerator of which shall be the Fair Market Value (as
determined pursuant to Section 11(d) hereof) per one one-thousandth of a share of Preferred Stock
on such record date, less the Fair Market Value (as determined pursuant to Section 11(d) hereof) of
the portion of the cash, assets or evidences of indebtedness so to be distributed or of such
convertible securities, subscription rights or warrants applicable to one one-thousandth of a share
of Preferred Stock and the denominator of which shall be the Fair Market Value (as determined
pursuant to Section 11(d) hereof) per one one-thousandth of a share of Preferred Stock;
provided, however, that in no event shall the consideration to be paid upon the
exercise of a Right be less than the aggregate par value of the shares of stock of the Company
issuable upon exercise of a Right. Such adjustments shall be made successively whenever such a
record date is fixed; and in the event that such distribution is not so made, the Exercise Price
shall again be adjusted to be the Exercise Price which would be in effect if such record date had
not been fixed.

(d) For the purpose of this Agreement, the “Fair Market Value” of any share of
Preferred Stock, Common Stock or any other stock or any Right or other security or any other
property shall be determined as provided in this Section 11(d).

(i) In the case of a publicly-traded stock or other security, the Fair Market Value on any
date shall be deemed to be the average of the daily closing prices per share of such stock or per
unit of such other security for the 30 consecutive Trading Days (as such term is hereinafter
defined) immediately prior to such date; provided, however, that in the event that
the Fair Market Value per share of any share of stock is determined during a period following the
announcement by the issuer of such stock of (x) a dividend or distribution on such stock payable in
shares of such stock or securities convertible into shares of such stock or (y) any subdivision,
combination or reclassification of such stock, and prior to the expiration of the 30 Trading Day
period after the ex-dividend date for

 

18

 

such dividend or distribution, or the record date for such subdivision, combination or
reclassification, then, and in each such case, the Fair Market Value shall be properly adjusted to
take into account ex-dividend trading. The closing price for each day shall be the last sale
price, regular way, or, in case no such sale takes place on such day, the average of the closing
bid and asked prices, regular way, in either case as reported in the principal consolidated
transaction reporting system with respect to securities listed or admitted to trading on the New
York Stock Exchange or, if the securities are not listed or admitted to trading on the New York
Stock Exchange, as reported in the principal consolidated transaction reporting system with respect
to securities listed on the principal national securities exchange on which such security is listed
or admitted to trading; or, if not listed or admitted to trading on any national securities
exchange, the last quoted price (or, if not so quoted, the average of the last quoted high bid and
low asked prices) in the over-the-counter market, as reported by the OTC Bulletin Board, the Pink
Sheets or such other system then in use; or, if on any such date no bids for such security are
quoted by any such organization, the average of the closing bid and asked prices as furnished by a
professional market maker making a market in such security selected by the Board of Directors. If
on any such date no market maker is making a market in such security, the Fair Market Value of such
security on such date shall be determined reasonably and with utmost good faith to the holders of
the Rights by the Board of Directors; provided, however, that if at the time of
such determination there is an Acquiring Person, the Fair Market Value of such security on such
date shall be determined by a nationally recognized investment banking firm selected by the Board
of Directors, which determination shall be described in a statement filed with the Rights Agent and
shall be binding on the Rights Agent and the holders of the Rights. The term “Trading Day”
shall mean a day on which the principal national securities exchange on which such security is
listed or admitted to trading is open for the transaction of business or, if such security is not
listed or admitted to trading on any national securities exchange, a Business Day.

(ii) If a security is not publicly held or not so listed or traded, “Fair Market
Value” shall mean the fair value per share of stock or per other unit of such security,
determined reasonably and in good faith to the holders of the Rights by the Board of Directors;
provided, however, that if at the time of such determination there is an Acquiring
Person, the Fair Market Value of such security on such date shall be determined by a nationally
recognized investment banking firm selected by the Board of Directors, which determination shall be
described in a statement filed with the Rights Agent and shall be binding on the Rights Agent and
the holders of the Rights; provided, however, that for the purposes of making any
adjustment provided for by Section 11(a)(ii) hereof, the Fair Market Value of a share of Preferred
Stock shall not be less than the product of the then Fair Market Value of a share of Common Stock
multiplied by the higher of the then Dividend Multiple or Vote Multiple (as both of such terms are
defined in the articles supplementary attached as Exhibit A hereto) applicable to the
Preferred Stock and shall not exceed 105% of the product of the then Fair Market Value of a share
of Common Stock multiplied by the higher of the then Dividend Multiple or Vote Multiple applicable
to the Preferred Stock.

(iii) In the case of property other than securities, the Fair Market Value thereof shall be
determined reasonably and in good faith to the holders of Rights by the Board of Directors;
provided, however, that if at the time of such determination there is an Acquiring
Person, the Fair Market Value of such property on such date shall be determined by a nationally
recognized investment banking firm selected by the Board of Directors, which determination shall be
described in a statement filed with the Rights Agent and shall be binding upon the Rights Agent and
the holders of the Rights.

 

19

 

(e) Anything herein to the contrary notwithstanding, no adjustment in the Exercise Price shall
be required unless such adjustment would require an increase or decrease of at least 1.0% in the
Exercise Price; provided, however, that any adjustments which by reason of this
Section 11(e) are not required to be made shall be carried forward and taken into account in any
subsequent adjustment. All calculations under this Section 11 shall be made to the nearest cent or
to the nearest one-millionth of a share of Common Stock of the Company or hundred-millionth of a
share of Preferred Stock, as the case may be, or to such other figure as the Board of Directors may
deem appropriate. Notwithstanding the first sentence of this Section 11(e), any adjustment
required by this Section 11 shall be made no later than the earlier of (i) three (3) years from the
date of the transaction which mandates such adjustment or (ii) the Expiration Date.

(f) If as a result of any provision of Section 11(a) or Section 13(a) hereof, the holder of
any Right thereafter exercised shall become entitled to receive any shares of stock of the Company
other than Preferred Stock, thereafter the number of such other shares so receivable upon exercise
of any Right shall be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to the Preferred Stock contained in
Section 11(a), (b), (c), (d), (e), (g) through (k) and (m), inclusive, and the provisions of
Sections 7, 9, 10, 13 and 14 hereof with respect to the Preferred Stock shall apply on like terms
to any such other shares.

(g) All Rights originally issued by the Company subsequent to any adjustment made to the
Exercise Price hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the
number of one one-thousandths of a share of Preferred Stock (or other securities or amount of cash
or combination thereof) purchasable from time to time hereunder upon exercise of the Rights, all
subject to further adjustment as provided herein.

(h) Unless the Company shall have exercised its election as provided in Section 11(i), upon
each adjustment of the Exercise Price as a result of the calculations made in Section 11(b) and
(c), each Right outstanding immediately prior to the making of such adjustment shall thereafter
evidence the right to purchase, at the adjusted Exercise Price, that number of one one-thousandths
of a share of Preferred Stock (calculated to the nearest hundred-millionth) as the Board of
Directors determines is appropriate to preserve the economic value of the Rights, including, by way
of example, that number obtained by (i) multiplying (x) the number of one one-thousandths of a
share of Preferred Stock for which a Right may be exercisable immediately prior to this adjustment
by (y) the Exercise Price in effect immediately prior to such adjustment of the Exercise Price and
(ii) dividing the product so obtained by the Exercise Price in effect immediately after such
adjustment of the Exercise Price.

(i) The Company may elect on or after the date of any adjustment of the Exercise Price to
adjust the number of Rights, in substitution for any adjustment in the number of shares of
Preferred Stock purchasable upon the exercise of a Right. Each of the Rights outstanding after the
adjustment in the number of Rights shall be exercisable for the number of one one-thousandths of a
share of Preferred Stock for which a Right was exercisable immediately prior to such adjustment.
Each Right held of record prior to such adjustment of the number of Rights shall become that number
of Rights (calculated to the nearest one-millionth) obtained by dividing the Exercise Price in
effect immediately prior to adjustment of the Exercise Price by the Exercise Price in effect
immediately after adjustment of the Exercise Price. The Company shall make a public announcement
of its election to adjust the number of Rights, indicating the record date for the adjustment, and,
if known at the time, the amount of the adjustment to be made. This record date may

 

20

 

be the date on
which the Exercise Price is adjusted or any day thereafter, but, if the Right Certificates have been issued, shall be at
least ten (10) days later than the date of the public announcement. If Right Certificates have
been issued, upon each adjustment of the number of Rights pursuant to this Section 11(i), the
Company shall, as promptly as practicable, cause to be distributed to holders of record of Right
Certificates on such record date Right Certificates evidencing, subject to Section 14 hereof, the
additional Rights to which such holders shall be entitled as a result of such adjustment, or, at
the option of the Company, shall cause to be distributed to such holders of record in substitution
and replacement for the Right Certificates held by such holders prior to the date of adjustment,
and upon surrender thereof, if required by the Company, new Right Certificates evidencing all the
Rights to which such holders shall be entitled after such adjustment. Right Certificates so to be
distributed shall be issued, executed and countersigned in the manner provided for herein (and may
bear, at the option of the Company, the adjusted Exercise Price) and shall be registered in the
names of the holders of record of Right Certificates on the record date specified in the public
announcement.

(j) Irrespective of any adjustment or change in the Exercise Price or the number of one
one-thousandths of a share of Preferred Stock issuable upon the exercise of the Rights, the Right
Certificates theretofore and thereafter issued may continue to express the Exercise Price per share
and the number of shares which were expressed in the initial Right Certificates issued hereunder
without prejudice to any adjustment or change.

(k) Before taking any action that would cause an adjustment reducing the Exercise Price below
the then aggregate par value, if any, of the number of one one-thousandths of a share of Preferred
Stock issuable upon exercise of the Rights, the Company shall take any corporate action which may,
in the opinion of its counsel, be necessary in order that the Company may validly and legally issue
fully paid and nonassessable shares of Preferred Stock at such adjusted Exercise Price.

(l) In any case in which this Section 11 shall require that an adjustment in the Exercise
Price be made effective as of a record date for a specified event, the Company may elect to defer
until the occurrence of such event the issuing to the holder of any Right exercised after such
record date the number of one one-thousandths of a share of Preferred Stock or other stock or
securities of the Company, if any, issuable upon such exercise over and above the number of one
one-thousandths of a share of Preferred Stock and other stock or securities of the Company, if any,
issuable upon such exercise on the basis of the Exercise Price in effect prior to such adjustment;
provided, however, that the Company shall deliver to such holder a due bill or
other appropriate instrument evidencing such holder’s right to receive such additional shares upon
the occurrence of the event requiring such adjustment.

(m) Anything in this Section 11 to the contrary notwithstanding, the Company shall be entitled
to make such reductions in the Exercise Price, in addition to those adjustments expressly required
by this Section 11, as and to the extent that in its good faith judgment the Board of Directors
shall determine to be advisable in order that any consolidation or subdivision of the Preferred
Stock, issuance wholly for cash of any shares of Preferred Stock at less than the Fair Market
Value, issuance wholly for cash of shares of Preferred Stock or securities which by their terms are
convertible into or exchangeable for shares of Preferred Stock, stock dividends or issuance of
rights, options or warrants referred to hereinabove in this Section 11, hereafter made by the
Company to holders of its Preferred Stock, shall not be taxable to such stockholders.

 

21

 

(n) The Company covenants and agrees that it shall not, at any time after the Distribution
Date and so long as the Rights have not been redeemed pursuant to Section 23 hereof or exchanged
pursuant to Section 24 hereof, (i) consolidate with (other than a Subsidiary of the Company in a
transaction that complies with the proviso at the end of this sentence), (ii) merge with or into,
or (iii) sell or transfer (or permit any Subsidiary to sell or transfer), in one transaction or a
series of related transactions, assets or earning power aggregating 50% or more of the assets or
earning power of the Company and its Subsidiaries taken as a whole, to any other Person or Persons
(other than the Company and/or any of its Subsidiaries in one or more transactions each of which
complies with the proviso at the end of this sentence) if (x) at the time of or immediately after
such consolidation, merger or sale there are any rights, warrants or other instruments outstanding
or agreements or arrangements in effect which would substantially diminish or otherwise eliminate
the benefits intended to be afforded by the Rights, or (y) prior to, simultaneously with or
immediately after such consolidation, merger or sale the stockholders of a Person who constitutes,
or would constitute, the “Principal Party” for the purposes of Section 13(a) hereof shall have
received a distribution of Rights previously owned by such Person or any of its Affiliates and
Associates; provided, however, that, subject to the following sentence, this
Section 11(n) shall not affect the ability of any Subsidiary of the Company to consolidate with, or
merge with or into, or sell or transfer assets or earning power to, any other Subsidiary of the
Company. The Company further covenants and agrees that after the Distribution Date it will not,
except as permitted by Section 23 or Section 27 hereof, take (or permit any Subsidiary to take) any
action if at the time such action is taken it is reasonably foreseeable that such action will
substantially diminish or otherwise eliminate the benefits intended to be afforded by the Rights.

(o) Notwithstanding anything in this Agreement to the contrary, in the event the Company shall
at any time after the date of this Agreement and prior to the Distribution Date (i) declare or pay
any dividend on the outstanding Common Stock of the Company payable in shares of Common Stock of
the Company or (ii) effect a subdivision, combination or consolidation of the outstanding shares of
Common Stock of the Company (by reclassification or otherwise than by payment of dividends in
shares of Common Stock of the Company) into a greater or lesser number of shares of Common Stock of
the Company, then in any such case (A) the number of one one-thousandths of a share of Preferred
Stock purchasable after such event upon proper exercise of each Right shall be determined by
multiplying the number of one one-thousandths of a share of Preferred Stock so purchasable
immediately prior to such event by a fraction, the numerator of which is the number of shares of
Common Stock of the Company outstanding immediately prior to such event and the denominator of
which is the number of shares of Common Stock of the Company outstanding immediately after such
event, and (B) each share of Common Stock of the Company outstanding immediately after such event
shall have issued with respect to it that number of Rights which each share of Common Stock of the
Company outstanding immediately prior to such event had issued with respect to it. The adjustments
provided for in this Section 11(o) shall be made successively whenever such a dividend is declared
or paid or such a subdivision, combination or consolidation is effected.

(p) The exercise of Rights under Section 11(a)(ii) shall only result in the loss of rights
under Section 11(a)(ii) to the extent so exercised and neither such exercise nor any exchange of
Rights pursuant to Section 24 shall otherwise affect the rights of holders of Right Certificates
under this Rights Agreement, including rights to purchase securities of the Principal Party
following a Section 13 Event which has occurred or may thereafter occur, as set forth in Section 13
hereof. Upon exercise of a Right Certificate under Section 11(a)(ii), the Rights Agent shall
return such Right Certificate duly marked to indicate that such exercise has occurred.

 

22

 

Section 12. Certificate of Adjusted Exercise Price or Number of Shares. Whenever an
adjustment is made as provided in Section 11 or Section 13 hereof, the Company shall (a) promptly
prepare a certificate setting forth such adjustment and a brief statement of the facts accounting
for such adjustment, (b) promptly file with the Rights Agent and with each transfer agent for the
Preferred Stock and the Common Stock of the Company a copy of such certificate and (c) mail a brief
summary thereof to each holder of a Right Certificate (or, if prior to the Distribution Date, to
each holder of a certificate representing shares of Common Stock of the Company) in accordance with
Section 26 hereof. The Rights Agent shall be fully protected in relying on any such certificate
and on any adjustment contained therein and shall not be deemed to have knowledge of any such
adjustment unless and until it shall have received such certificate.

Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power.

(a) In the event that, following the Stock Acquisition Date, directly or indirectly, (x) the
Company shall consolidate with, or merge with and into, any other Person (other than a Subsidiary
of the Company in a transaction which is not prohibited by Section 11(n) hereof), and the Company
shall not be the continuing or surviving corporation of such consolidation or merger, (y) any
Person (other than a Subsidiary of the Company in a transaction which is not prohibited by the
proviso at the end of the first sentence of Section 11(n) hereof) shall consolidate with the
Company, or merge with and into the Company and the Company shall be the continuing or surviving
corporation of such merger and, in connection with such merger, all or part of the shares of Common
Stock of the Company shall be changed into or exchanged for stock or other securities of any other
Person or cash or any other property, or (z) the Company shall sell, mortgage or otherwise transfer
(or one or more of its Subsidiaries shall sell, mortgage or otherwise transfer), in one transaction
or a series of related transactions, assets or earning power aggregating 50% or more of the assets
or earning power of the Company and its Subsidiaries (taken as a whole) to any other Person or
Persons (other than the Company or any Subsidiary of the Company in one or more transactions, each
of which is not prohibited by the proviso at the end of the first sentence of Section 11(n)
hereof), then, and in each such case, proper provision shall be made so that: (i) each holder of a
Right, except as provided in Section 7(e) hereof, shall have the right to receive, upon the
exercise thereof at the then current Exercise Price in accordance with the terms of this Agreement,
such number of validly authorized and issued, fully paid and nonassessable shares of freely
tradable Common Stock of the Principal Party (as hereinafter defined in Section 13(b)), free and
clear of rights of call or first refusal, liens, encumbrances, transfer restrictions or other
adverse claims, as shall be equal to the result obtained by (1) multiplying the then current
Exercise Price by the number of one one-thousandths of a share of Preferred Stock for which a Right
is exercisable immediately prior to the first occurrence of a Section 13 Event (without taking into
account any adjustment previously made pursuant to Section 11(a)(ii) or 11(a)(iii) hereof), and
dividing that product by (2) 50% of the Fair Market Value (determined pursuant to Section 11(d)
hereof) per share of the Common Stock of such Principal Party on the date of consummation of such
consolidation, merger, sale or transfer; (ii) such Principal Party shall thereafter be liable for,
and shall assume, by virtue of such consolidation, merger, sale, mortgage or transfer, all the
obligations and duties of the Company pursuant to this Agreement; (iii) the term “Company” shall
thereafter be deemed to refer to such Principal Party, it being specifically intended that the
provisions of Section 11 hereof shall apply to such Principal Party; and (iv) such Principal Party
shall take such steps (including, but not limited to, the reservation of a sufficient number of
shares of its Common Stock to permit exercise of all outstanding Rights in accordance with this
Section 13(a) and the making of payments in cash and/or other securities in accordance with Section
11(a)(iii) hereof) in connection with such consummation as may be necessary
to assure that the provisions hereof shall thereafter be applicable, as nearly as reasonably
may be, in relation to its shares of Common Stock thereafter deliverable upon the exercise of the
Rights.

 

23

 

(b) “Principal Party” shall mean

(i) in the case of any transaction described in clause (x) or (y) of the first sentence of
Section 13(a), the Person that is the issuer of any securities into which shares of Common Stock of
the Company are converted in such merger or consolidation, or, if there is more than one such
issuer, the issuer of Common Stock that has the highest aggregate Fair Market Value (determined
pursuant to Section 11(d)), and if no securities are so issued, the Person that is the other party
to the merger or consolidation, or, if there is more than one such Person, the Person the Common
Stock of which has the highest aggregate Fair Market Value (determined pursuant to Section 11(d));
and

(ii) in the case of any transaction described in clause (z) of the first sentence of Section
13(a), the Person that is the party receiving the greatest portion of the assets or earning power
transferred pursuant to such transaction or transactions, or, if each Person that is a party to
such transaction or transactions receives the same portion of the assets or earning power
transferred pursuant to such transaction or transactions or if the Person receiving the largest
portion of the assets or earning power cannot be determined, whichever Person the Common Stock of
which has the highest aggregate Fair Market Value (determined pursuant to Section 11(d));

provided, however, that in any such case described in clauses (i) or (ii) of
Section 13(b) hereof, (1) if the Common Stock of such Person is not at such time and has not been
continuously over the preceding 12-month period registered under Section 12 of the Exchange Act
(“Registered Common Stock”) or such Person is not a corporation, and such Person is a
direct or indirect Subsidiary or Affiliate of another Person who has Registered Common Stock
outstanding, “Principal Party” shall refer to such other Person; (2) if the Common Stock of such
Person is not Registered Common Stock or such Person is not a corporation, and such Person is a
direct or indirect Subsidiary of another Person but is not a direct or indirect Subsidiary of
another Person which has Registered Common Stock outstanding, “Principal Party” shall refer to the
ultimate parent entity of such first-mentioned Person; (3) if the Common Stock of such Person is
not Registered Common Stock or such Person is not a corporation, and such Person is directly or
indirectly controlled by more than one Person, and one or more of such other Persons has Registered
Common Stock outstanding, “Principal Party” shall refer to whichever of such other Persons is the
issuer of the Registered Common Stock having the highest aggregate Fair Market Value (determined
pursuant to Section 11(d)); and (4) if the Common Stock of such Person is not Registered Common
Stock or such Person is not a corporation, and such Person is directly or indirectly controlled by
more than one Person, and none of such other Persons has Registered Common Stock outstanding,
“Principal Party” shall refer to whichever ultimate parent entity is the corporation having the
greatest stockholders’ equity or, if no such ultimate parent entity is a corporation, “Principal
Party” shall refer to whichever ultimate parent entity is the entity having the greatest net
assets.

 

24

 

(c) The Company shall not consummate any such consolidation, merger, sale or transfer unless
prior thereto (x) the Principal Party shall have a sufficient number of authorized shares of its
Common Stock, which have not been issued or reserved for issuance, to permit the exercise in full
of the Rights in accordance with this Section 13, and (y) the Company and each Principal Party and
each other Person who may become a Principal Party as a result of such consolidation, merger, sale
or transfer shall have executed and delivered to the Rights Agent a supplemental agreement
providing for
the terms set forth in Section 13(a) and (b) and further providing that, as soon as
practicable after the date of any consolidation, merger, sale or transfer of assets mentioned in
Section 13(a), the Principal Party at its own expense will:

(i) prepare and file a registration statement under the Securities Act with respect to the
Rights and the securities purchasable upon exercise of the Rights on an appropriate form, cause
such registration statement to become effective as soon as practicable after such filing and cause
such registration statement to remain effective (with a prospectus that at all times meets the
requirements of the Securities Act) until the Expiration Date;

(ii) qualify or register the Rights and the securities purchasable upon exercise of the Rights
under the blue sky laws of such jurisdictions as may be necessary or appropriate;

(iii) list (or continue the listing of) the Rights and the securities purchasable upon
exercise of the Rights on a national securities exchange or meet the eligibility requirements for
listing on an automated quotation system or such other system on which the Common Stock of the
Company is then traded; and

(iv) deliver to holders of the Rights historical financial statements for the Principal Party
and each of its Affiliates which comply in all respects with the requirements for registration on
Form 10 under the Exchange Act.

(d) In case the Principal Party which is to be a party to a transaction referred to in this
Section 13 has a provision in any of its authorized securities or in its charter or By-laws or
other instrument governing its affairs, which provision would have the effect of (i) causing such
Principal Party to issue (other than to holders of Rights pursuant to this Section 13), in
connection with, or as a consequence of, the consummation of a transaction referred to in this
Section 13, shares of Common Stock of such Principal Party at less than the then current Fair
Market Value (determined pursuant to Section 11(d)) or securities exercisable for, or convertible
into, Common Stock of such Principal Party at less than such Fair Market Value, or (ii) providing
for any special payment, tax or similar provisions in connection with the issuance of the Common
Stock of such Principal Party pursuant to the provisions of this Section 13, then, in such event,
the Company shall not consummate any such transaction unless prior thereto the Company and such
Principal Party shall have executed and delivered to the Rights Agent a supplemental agreement
providing that the provision in question of such Principal Party shall have been canceled, waived
or amended, or that the authorized securities shall be redeemed, so that the applicable provision
will have no effect in connection with, or as a consequence of, the consummation of the proposed
transaction.

The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers.

Section 14. Fractional Rights and Fractional Shares.

(a) The Company shall not be required to issue fractions of Rights, except prior to the
Distribution Date as provided in Section 11(o) hereof, or to distribute Right Certificates which
evidence fractional Rights. If the Company elects not to issue such fractional Rights, the Company
shall pay, in lieu of such fractional Rights, to the registered holders of the Right Certificates
with regard to which
such fractional Rights would otherwise be issuable, an amount in cash equal to the same
fraction of the Fair Market Value of a whole Right, as determined pursuant to Section 11(d) hereof.

 

25

 

(b) The Company shall not be required to issue fractions of shares of Preferred Stock (other
than fractions which are integral multiples of one one-thousandth of a share of Preferred Stock)
upon exercise of the Rights or to distribute certificates which evidence fractional shares of
Preferred Stock (other than fractions which are integral multiples of one one-thousandth of a share
of Preferred Stock). In lieu of fractional shares of Preferred Stock that are not integral
multiples of one one-thousandth of a share of Preferred Stock, the Company may pay to the
registered holders of Right Certificates at the time such Rights are exercised as herein provided
an amount in cash equal to the same fraction of the Fair Market Value of one one-thousandth of a
share of Preferred Stock. For purposes of this Section 14(b), the Fair Market Value of one
one-thousandth of a share of Preferred Stock shall be determined pursuant to Section 11(d) hereof
for the Trading Day immediately prior to the date of such exercise.

(c) The holder of a Right by the acceptance of the Rights expressly waives his right to
receive any fractional Rights or any fractional shares upon exercise of a Right, except as
permitted by this Section 14.

Section 15. Rights of Action. All rights of action in respect of this Agreement, other than
rights of action vested in the Rights Agent pursuant to Sections 18 and 20 hereof, are vested in
the respective registered holders of the Right Certificates (or, prior to the Distribution Date,
the registered holders of the Common Stock of the Company); and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Common Stock of the Company), without the
consent of the Rights Agent or of the holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Stock of the Company), may, in such registered holder’s own behalf
and for such registered holder’s own benefit, enforce, and may institute and maintain any suit,
action or proceeding against the Company to enforce, or otherwise act in respect of, his right to
exercise the Right evidenced by such Right Certificate in the manner provided in such Right
Certificate and in this Agreement. Without limiting the foregoing or any remedies available to the
holders of Rights, it is specifically acknowledged that the holders of Rights would not have an
adequate remedy at law for any breach of this Agreement and shall be entitled to specific
performance of the obligations hereunder and injunctive relief against actual or threatened
violations of the obligations hereunder of any Person subject to this Agreement. Holders of Rights
shall be entitled to recover the reasonable costs and expenses, including attorneys’ fees, incurred
by them in any action to enforce the provisions of this Agreement.

Section 16. Agreement of Right Holders. Every holder of a Right, by accepting the same,
consents and agrees with the Company and the Rights Agent and with every other holder of a Right
that:

(a) prior to the Distribution Date, each Right will be transferable only simultaneously and
together with the transfer of shares of Common Stock of the Company;

(b) after the Distribution Date, the Right Certificates are transferable only on the registry
books of the Rights Agent if surrendered at the office or offices of the Rights Agent designated
for such purpose, duly endorsed or accompanied by a proper instrument of transfer;

 

26

 

(c) subject to Sections 6(a) and 7(f), the Company and the Rights Agent may deem and treat the
person in whose name a Right Certificate (or, prior to the Distribution Date, the associated
certificate representing Common Stock of the Company) is registered as the absolute owner thereof
and of the Rights evidenced thereby (notwithstanding any notations of ownership or writing on the
Right Certificates or the associated certificate representing Common Stock of the Company made by
anyone other than the Company or the Rights Agent) for all purposes whatsoever, and, subject to the
last sentence of Section 7(e), neither the Company nor the Rights Agent shall be affected by any
notice to the contrary; and

(d) notwithstanding anything in this Agreement to the contrary, neither the Company nor the
Rights Agent shall have any liability to any holder of a Right or other Person as the result of its
inability to perform any of its obligations under this Agreement by reason of any preliminary or
permanent injunction or other order, decree or ruling issued by a court of competent jurisdiction
or by a governmental, regulatory or administrative agency or commission, or any statute, rule,
regulation or executive order promulgated or enacted by any governmental authority prohibiting or
otherwise restraining performance of such obligations; provided, however, that the
Company must use commercially reasonable efforts to have any such order, decree or ruling lifted or
otherwise overturned as soon as possible.

Section 17. Right Certificate Holder Not Deemed a Stockholder. No holder, as such, of any
Right Certificate shall be entitled to vote, receive dividends or be deemed for any purpose the
holder of the shares of Preferred Stock or any other securities of the Company which may at any
time be issuable on the exercise of the Rights represented thereby, nor shall anything contained
herein or in any Right Certificate be construed to confer upon the holder of any Right Certificate,
as such, any of the rights of a stockholder of the Company or any right to vote for the election of
directors or upon any matter submitted to stockholders at any meeting thereof, or to give or
withhold consent to any corporate action, or to receive notice of meetings or other actions
affecting stockholders (except as provided in Section 25 hereof), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights evidenced by such Right Certificate
shall have been exercised in accordance with the provisions hereof.

Section 18. Concerning the Rights Agent.

(a) The Company agrees to pay to the Rights Agent such compensation as shall be agreed to in
writing between the Company and the Rights Agent for all services rendered by it hereunder and,
from time to time, on demand of the Rights Agent, its reasonable expenses and attorney fees and
disbursements and other disbursements incurred in the administration and execution of this
Agreement and the exercise and performance of its duties hereunder. The Company also agrees to
indemnify the Rights Agent for, and to hold it harmless against, any loss, liability, or expense,
incurred without gross negligence, bad faith or willful misconduct on the part of the Rights Agent,
for anything done or omitted by the Rights Agent in connection with the acceptance and
administration of this Agreement, including the costs and expenses of defending against any claim
of liability arising therefrom, directly or indirectly. The provisions of this Section 18(a) shall
survive the expiration of the Rights and the termination of this Agreement.

(b) The Rights Agent shall be protected and shall incur no liability for or in respect of any
action taken, suffered or omitted by it in connection with its administration of this Agreement in
reliance upon any Right Certificate or certificate representing Common Stock of the Company,
Preferred
Stock, or other securities of the Company, instrument of assignment or transfer, power of
attorney, endorsement, affidavit, letter, notice, direction, consent, certificate, statement, or
other paper or document believed by it in good faith and without gross negligence to be genuine and
to be signed and executed by the proper Person or Persons.

 

27

 

(c) The Rights Agent shall not be liable for consequential damages under any provision of this
Agreement or for any consequential damages arising out of any act or failure to act hereunder. Any
liability of the Rights Agent under this Agreement will be limited to the amount of fees paid by
the Company to the Rights Agent.

Section 19. Merger or Consolidation or Change of Name of Rights Agent.

(a) Any corporation into which the Rights Agent or any successor Rights Agent may be merged or
with which it may be consolidated, or any corporation resulting from any merger or consolidation to
which the Rights Agent or any successor Rights Agent shall be a party, or any corporation
succeeding to the corporate trust or stockholder services business of the Rights Agent or any
successor Rights Agent, shall be the successor to the Rights Agent under this Agreement without the
execution or filing of any paper or any further act on the part of any of the parties hereto,
provided that such corporation would be eligible for appointment as a successor
Rights Agent under the provisions of Section 21 hereof. In case at the time such successor Rights
Agent shall succeed to the agency created by this Agreement, any of the Right Certificates shall
have been countersigned but not delivered, any such successor Rights Agent may adopt the
countersignature of the predecessor Rights Agent and deliver such Right Certificates so
countersigned; and in case at that time any of the Right Certificates shall not have been
countersigned, any successor Rights Agent may countersign such Right Certificates either in the
name of the predecessor or in the name of the successor Rights Agent; and in all such cases such
Right Certificates shall have the full force provided in the Right Certificates and in this
Agreement.

(b) In case at any time the name of the Rights Agent shall be changed and at such time any of
the Right Certificates shall have been countersigned but not delivered, the Rights Agent may adopt
the countersignature under its prior name and deliver Right Certificates so countersigned; and in
case at that time any of the Right Certificates shall not have been countersigned, the Rights Agent
may countersign such Right Certificates either in its prior name or in its changed name; and in all
such cases such Right Certificates shall have the full force provided in the Right Certificates and
in this Agreement.

Section 20. Duties of Rights Agent. The Rights Agent undertakes the duties and obligations
expressly imposed by this Agreement upon the following terms and conditions, by all of which the
Company and the holders of Right Certificates, by their acceptance thereof, shall be bound:

(a) The Rights Agent may consult with legal counsel selected by it (who may be legal counsel
for the Company), and the opinion of such counsel shall be full and complete authorization and
protection to the Rights Agent as to any action taken or omitted by it in good faith and in
accordance with such opinion.

(b) Whenever in the performance of its duties under this Agreement the Rights Agent shall deem
it necessary or desirable that any fact or matter (including, without limitation, the identity of
any Acquiring Person and the determination of “Fair Market Value”) be proved or established by the
Company prior to taking or suffering any action hereunder, such fact or matter (unless other
evidence in
respect thereof shall be herein specifically prescribed) may be deemed to be conclusively
proved and established by a certificate signed by a person believed by the Rights Agent to be the
Chairman of the Board of Directors, a Vice Chairman of the Board of Directors, the President, a
Vice President, the Treasurer, any Assistant Treasurer, the Secretary or an Assistant Secretary of
the Company and delivered to the Rights Agent. Any such certificate shall be full authorization to
the Rights Agent for any action taken or suffered in good faith by it under the provisions of this
Agreement in reliance upon such certificate.

 

28

 

(c) The Rights Agent shall be liable hereunder only for its own gross negligence, bad faith or
willful misconduct.

(d) The Rights Agent shall not be liable for or by reason of any of the statements of fact or
recitals contained in this Agreement or in the Right Certificates (except its countersignature
thereof) or be required to verify the same, but all such statements and recitals are and shall be
deemed to have been made by the Company only.

(e) The Rights Agent shall not be under any responsibility in respect of the validity of this
Agreement or the execution and delivery hereof (except the due execution hereof by the Rights
Agent) or in respect of the validity or execution of any Right Certificate (except its
countersignature thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate; nor shall it be
responsible for any change in the exercisability of the Rights (including the Rights becoming void
pursuant to Section 7(e) hereof) or any adjustment required under the provisions of Sections 11, 13
or 24(c) hereof or responsible for the manner, method or amount of any such adjustment or the
ascertaining of the existence of facts that would require any such adjustment (except with respect
to the exercise of Rights evidenced by Right Certificates after receipt of a certificate describing
any such adjustment furnished in accordance with Section 12 hereof), nor shall it be responsible
for any determination by the Board of Directors of the Fair Market Value of the Rights or Preferred
Stock pursuant to the provisions of Section 14 hereof; nor shall it by any act hereunder be deemed
to make any representation or warranty as to the authorization or reservation of any shares of
Common Stock of the Company or Preferred Stock to be issued pursuant to this Agreement or any Right
Certificate or as to whether or not any shares of Common Stock of the Company or Preferred Stock
will, when so issued, be validly authorized and issued, fully paid and nonassessable.

(f) The Company agrees that it will perform, execute, acknowledge and deliver or cause to be
performed, executed, acknowledged and delivered all such further and other acts, instruments and
assurances as may reasonably be required by the Rights Agent for the carrying out or performing by
the Rights Agent of the provisions of this Agreement.

(g) The Rights Agent is hereby authorized and directed to accept instructions with respect to
the performance of its duties hereunder and certificates delivered pursuant to any provision hereof
from any person believed by the Rights Agent to be the Chairman of the Board of Directors, any Vice
Chairman of the Board of Directors, the President, a Vice President, the Secretary, an Assistant
Secretary, the Treasurer or an Assistant Treasurer of the Company, and is authorized to apply to
such officers for advice or instructions in connection with its duties, and it shall not be liable
for any action taken or suffered to be taken by it in good faith in accordance with instructions of
any such officer. Any application by the Rights Agent for written instructions from the Company
may, at the option of the
Rights Agent, set forth in writing any action proposed to be taken or omitted by the Rights
Agent under this Agreement and the date on or after which such action shall be taken or such
omission shall be effective. The Rights Agent shall not be liable for any action taken by, or
omission of, the Rights Agent in accordance with a proposal included in such application on or
after the date specified in such application (which date shall not be less than five Business Days
after the date any officer of the Company actually receives such application, unless any such
officer shall have consented in writing to an earlier date) unless, prior to taking any such action
(or the effective date in the case of an omission), the Rights Agent shall have received written
instructions in response to such application specifying the action to be taken or omitted.

 

29

 

(h) The Rights Agent and any stockholder, director, officer or employee of the Rights Agent
may buy, sell or deal in any of the Rights or other securities of the Company or become pecuniarily
interested in any transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not the Rights Agent
under this Agreement. Nothing herein shall preclude the Rights Agent from acting in any other
capacity for the Company or for any other legal entity.

(i) The Rights Agent may execute and exercise any of the rights or powers hereby vested in it
or perform any duty hereunder either itself or by or through its attorneys or agents.

(j) No provision of this Agreement shall require the Rights Agent to expend or risk its own
funds or otherwise incur any financial liability in the performance of any of its duties hereunder
or in the exercise of its rights if there shall be reasonable grounds for believing that repayment
of such funds or adequate indemnification against such risk or liability is not reasonably assured
to it.

(k) If, with respect to any Right Certificate surrendered to the Rights Agent for exercise or
transfer, the certificate attached to the form of assignment or form of election to purchase, as
the case may be, has either not been completed or indicates an affirmative response to clause (1)
or clause (2) thereof, the Rights Agent shall not take any further action with respect to such
requested exercise or transfer without first consulting with the Company.

Section 21. Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign
and be discharged from its duties under this Agreement upon thirty (30) days’ notice in writing
mailed to the Company by first class mail, provided, however, that in the event the
transfer agency relationship in effect between the Company and the Rights Agent with respect to the
Common Stock of the Company terminates, the Rights Agent will be deemed to have resigned
automatically on the effective date of such termination. The Company may remove the Rights Agent
or any successor Rights Agent (with or without cause), effective immediately or on a specified
date, by written notice given to the Rights Agent or successor Rights Agent, as the case may be,
and to each transfer agent of the Common Stock of the Company and Preferred Stock, and by giving
notice to the holders of the Right Certificates by any means reasonably determined by the Company
to inform such holders of such removal (including without limitation, by including such information
in one or more of the Company’s reports to stockholders or reports or filings with the Securities
and Exchange Commission). If the Rights Agent shall resign or be removed or shall otherwise become
incapable of acting, the Company shall appoint a successor to the Rights Agent. If the Company
shall fail to make such appointment within a period of thirty (30) days after giving notice of such
removal or after it has been notified in writing of such resignation or incapacity by the

 

30

 

resigning
or incapacitated Rights Agent or by the holder of a Right Certificate (who shall, with such notice, submit his Right Certificate for
inspection by the Company), then the incumbent Rights Agent or the registered holder of any Right
Certificate may apply to any court of competent jurisdiction for the appointment of a new Rights
Agent. Any successor Rights Agent, whether appointed by the Company or by such a court, shall be
(a) a corporation organized and doing business under the laws of the United States, the State of
Maryland or the State of New York (or of any other state of the United States so long as such
corporation is authorized to do business as a banking institution in the State of Maryland or the
State of New York), in good standing, which is authorized under such laws to exercise stock
transfer or corporate trust powers and is subject to supervision or examination by federal or state
authority and which has at the time of its appointment as Rights Agent a combined capital and
surplus of at least $100,000,000 or (b) an Affiliate of a Person described in clause (a) of this
sentence. After appointment, the successor Rights Agent shall be vested with the same powers,
rights, duties and responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and transfer to the successor
Rights Agent any property at the time held by it hereunder, and execute and deliver any further
assurance, conveyance, act or deed necessary for the purpose. Not later than the effective date of
any such appointment, the Company shall file notice thereof in writing with the predecessor Rights
Agent and each transfer agent of the Common Stock of the Company and the Preferred Stock, and give
notice to the holders of the Right Certificates by any means reasonably determined by the Company
to inform such holders of such appointment (including without limitation, by including such
information in one or more of the Company’s reports to stockholders or reports or filings with the
Securities and Exchange Commission). Failure to give any notice provided for in this Section 21,
however, or any defect therein, shall not affect the legality or validity of the resignation or
removal of the Rights Agent or the appointment of the successor Rights Agent, as the case may be.

Section 22. Issuance of New Right Certificates. Notwithstanding any of the provisions of this
Agreement or of the Rights to the contrary, the Company may, at its option, issue new Right
Certificates evidencing Rights in such form as may be approved by the Board of Directors to reflect
any adjustment or change in the Exercise Price per share and the number or kind or class of shares
of stock or other securities or property purchasable under the Right Certificates made in
accordance with the provisions of this Agreement. In addition, in connection with the issuance or
sale of shares of Common Stock of the Company following the Distribution Date and prior to the
redemption or expiration of the Rights, the Company (a) shall, with respect to shares of Common
Stock of the Company so issued or sold pursuant to the exercise of stock options or under any
employee plan or arrangement, or upon the exercise, conversion or exchange of securities hereafter
issued by the Company, and (b) may, in any other case, if deemed necessary or appropriate by the
Board of Directors, issue Right Certificates representing the appropriate number of Rights in
connection with such issuance or sale; provided, however, that (i) no such Right
Certificate shall be issued if, and to the extent that, the Company shall be advised by counsel
that such issuance would create a significant risk of material adverse tax consequences to the
Company or the Person to whom such Right Certificate would be issued, and (ii) no such Right
Certificate shall be issued if, and to the extent that, appropriate adjustments shall otherwise
have been made in lieu of the issuance thereof.

Section 23. Redemption.

(a) The Board of Directors may, at its option, redeem all but not less than all of the then
outstanding Rights at a redemption price of $0.001 per Right, appropriately adjusted to reflect any
stock dividend declared or paid, any subdivision or combination of the outstanding shares of Common
Stock of the Company or any similar event occurring after the date of this Agreement (such
redemption price, as adjusted from time to time, being hereinafter referred to as the
“Redemption Price”). The Rights may be redeemed at any time prior to the earlier to occur
of (i) a Distribution Date, or (ii) the Final Expiration Date.

 

31

 

(b) Immediately upon the action of the Board of Directors ordering the redemption of the
Rights in accordance with Section 23 hereof, and without any further action and without any notice,
the right to exercise the Rights will terminate and the only right thereafter of the holders of
Rights shall be to receive the Redemption Price for each Right so held. Promptly after the action
of the Board of Directors ordering the redemption of the Rights in accordance with this Section 23,
the Company shall give notice of such redemption to the Rights Agent and the holders of the then
outstanding Rights by mailing such notice to the Rights Agent and to all such holders at their last
addresses as they appear upon the registry books of the Rights Agent or, prior to the Distribution
Date, on the registry books of the transfer agent for the Common Stock of the Company. Any notice
which is mailed in the manner herein provided shall be deemed given, whether or not the holder
receives the notice. The Company promptly shall mail a notice of any such exchange to all of the
holders of such Rights at their last addresses as they appear upon the registry books of the Rights
Agent. Any notice which is mailed in the manner herein provided shall be deemed given, whether or
not the holder receives the notice. Each such notice of redemption will state the method by which
the payment of the Redemption Price will be made. Neither the Company nor any of its Affiliates or
Associates may redeem, acquire or purchase for value any Rights at any time in any manner other
than that specifically set forth in this Section 23 or Section 24 hereof or in connection with the
purchase of shares of Common Stock of the Company prior to the Distribution Date.

(c) The Company may, at its option, pay the Redemption Price in cash, shares of Common Stock
of the Company (based on the Fair Market Value of the Common Stock of the Company as of the time of
redemption) or any other form of consideration deemed appropriate by the Board of Directors.

Section 24. Exchange.

(a) (i) The Board of Directors may, at its option, at any time on or after the occurrence of a
Section 11(a)(ii) Event, exchange all or part of the then outstanding Rights, whether or not
previously exercised (but which exchange shall not include Rights that have become void pursuant to
the provisions of Section 7(e) hereof) for shares of Common Stock of the Company at an exchange
ratio of one share of Common Stock of the Company per Right, appropriately adjusted to reflect any
stock split, stock dividend or similar transaction occurring after the date hereof (such exchange
ratio being hereinafter referred to as the “Section 24(a)(i) Exchange Ratio”).
Notwithstanding the foregoing, the Board of Directors shall not be empowered to effect such
exchange at any time after any Person (other than an Exempt Person), together with all Affiliates
and Associates of such Person, becomes the Beneficial Owner of 50% or more of the Common Stock of
the Company.

 

32

 

(ii) Notwithstanding the foregoing, the Board of Directors may, at its option, at any time on
or after the occurrence of a Section 11(a)(ii) Event, exchange all or part of the then outstanding
and exercisable Rights (which shall not include Rights that have become null and void pursuant to
the provisions of Section 7(e) hereof) for shares of Common Stock of the Company at an exchange
ratio specified in the following sentence, as appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date of this Agreement. Subject to
the adjustment described in the foregoing sentence, each Right may be exchanged for that number of
shares of Common Stock of the Company obtained by dividing the Spread (as defined in Section
11(a)(iii)) by the then Fair Market Value of a share of Common Stock of the Company on the earlier
of (x) the date on which any Person becomes an Acquiring Person or (y) the date on which a tender
or exchange offer by any Person (other than an Exempt Person) is first published or sent or given
within the meaning of Rule 14d-4(a) of the Exchange Act or any successor rule, if upon consummation
thereof such Person could become an Acquiring Person (such exchange ratio being referred to herein
as the “Section 24(a)(ii) Exchange Ratio”). Notwithstanding the foregoing, the Board of
Directors shall not be empowered to effect such exchange at any time after any Person (other than
an Exempt Person), together with all Affiliates and Associates of such Person, becomes the
Beneficial Owner of 50% or more of the Common Stock of the Company.

(b) Immediately upon the action of the Board of Directors ordering the exchange of any Rights
pursuant to subsection (a) of this Section 24 and without any further action and without any
notice, the right to exercise such Rights pursuant to Section 11(a)(ii) shall terminate and the
only right thereafter of a holder of such Rights shall be to receive that number of shares of
Common Stock of the Company equal to the number of such Rights held by such holder multiplied by
the Section 24(a)(i) Exchange Ratio or the Section 24(a)(ii) Exchange Ratio, as applicable;
provided, however, that the holder of a Right exchanged pursuant to this Section 24
shall continue to have the right to purchase securities or other property of the Principal Party
following a Section 13 Event that has occurred or may thereafter occur. The Company shall promptly
give notice of any such exchange in accordance with Section 26 hereof and shall promptly mail a
notice of any such exchange to all of the holders of such Rights at their last addresses as they
appear upon the registry books of the Rights Agent; provided, however, that the
failure to give, or any defect in, such notice shall not affect the validity of such exchange. Any
notice which is mailed in the manner herein provided shall be deemed given, whether or not the
holder receives the notice. Each such notice of exchange will state the method by which the
exchange of the shares of Common Stock of the Company for Rights will be effected and, in the event
of any partial exchange, the number of Rights which will be exchanged. Any partial exchange shall
be effected pro rata based on the number of Rights (other than Rights which have become null and
void pursuant to the provisions of Section 7(e) hereof) held by each holder of Rights.

(c) In any exchange pursuant to this Section 24, the Company, at its option, may substitute
Preferred Stock (or Preferred Stock Equivalent, as such term is defined in Section 11(b) hereof)
for Common Stock of the Company exchangeable for Rights, at the initial rate of one one-thousandth
of a share of Preferred Stock (or Preferred Stock Equivalent) for each share of Common Stock of the
Company, as appropriately adjusted to reflect adjustments in the voting rights of the Preferred
Stock pursuant to the terms thereof, so that the fraction of a share of Preferred Stock delivered
in lieu of each share of Common Stock of the Company shall have the same voting rights as one share
of Common Stock of the Company.

(d) In the event that there shall not be sufficient shares of Common Stock of the Company or
Preferred Stock (or Preferred Stock Equivalents) authorized but unissued to permit any exchange of
Rights as contemplated in accordance with this Section 24, the Company shall take all such action
as may be necessary to authorize additional shares of Common Stock of the Company or Preferred
Stock (or Preferred Stock Equivalent) for issuance upon exchange of the Rights.

 

33

 

(e) The Company shall not be required to issue fractions of Common Stock of the Company or to
distribute certificates which evidence fractional shares of Common Stock of the Company. If the
Company elects not to issue such fractional shares of Common Stock of the Company, the Company
shall pay, in lieu of such fractional shares of Common Stock of the Company, to the registered
holders of the Right Certificates with regard to which such fractional shares of Common Stock of
the Company would otherwise be issuable, an amount in cash equal to the same fraction of the Fair
Market Value of a whole share of Common Stock of the Company. For the purposes of this paragraph
(e), the Fair Market Value of a whole share of Common Stock of the Company shall be the closing
price of a share of Common Stock of the Company (as determined pursuant to the second sentence of
Section 11(d)(i) hereof) for the Trading Day immediately prior to the date of exchange pursuant to
this Section 24.

Section 25. Notice of Certain Events.

(a) In case the Company shall propose, at any time after the Distribution Date, (i) to pay any
dividend payable in stock of any class to the holders of Preferred Stock or to make any other
distribution to the holders of Preferred Stock (other than a regular periodic cash dividend out of
earnings or retained earnings of the Company), or (ii) to offer to the holders of Preferred Stock
rights or warrants to subscribe for or to purchase any additional shares of Preferred Stock or
shares of stock of any class or any other securities, rights or options, or (iii) to effect any
reclassification of Preferred Stock (other than a reclassification involving only the subdivision
of outstanding shares of Preferred Stock), or (iv) to effect any consolidation or merger into or
with, or to effect any sale, mortgage or other transfer (or to permit one or more of its
Subsidiaries to effect any sale, mortgage or other transfer), in one transaction or a series of
related transactions, of 50% or more of the assets or earning power of the Company and its
Subsidiaries (taken as a whole) to, any other Person (other than a Subsidiary of the Company in one
or more transactions each of which is not prohibited by the proviso at the end of the first
sentence of Section 11(n) hereof), or (v) to effect the liquidation, dissolution or winding up of
the Company, or (vi) to declare or pay any dividend on the Common Stock of the Company payable in
Common Stock of the Company or to effect a subdivision, combination or consolidation of the Common
Stock of the Company (by reclassification or otherwise than by payment of dividends in Common Stock
of the Company) then in each such case, the Company shall give to each holder of a Right
Certificate and to the Rights Agent, in accordance with Section 26 hereof, a notice of such
proposed action, which shall specify the record date for the purposes of such stock dividend,
distribution of rights or warrants, or the date on which such reclassification, consolidation,
merger, sale, transfer, liquidation, dissolution, or winding up is to take place and the date of
participation therein by the holders of the shares of Common Stock of the Company and/or Preferred
Stock, if any such date is to be fixed, and such notice shall be so given in the case of any action
covered by clause (i) or (ii) above at least twenty (20) days prior to the record date for
determining holders of the shares of Preferred Stock for purposes of such action, and in the case
of any such other action, at least twenty (20) days prior to the date of the taking of such
proposed action or the date of participation therein by the holders of the shares of Common Stock
of the Company and/or Preferred Stock, whichever shall be the earlier; provided,
however, no such notice shall be required pursuant to this Section 25 as a result of any
Subsidiary of the Company effecting a consolidation or merger with or into, or effecting a sale or
other transfer of assets or earnings power to, any other Subsidiary of the Company in a manner not
inconsistent with the provisions of this Agreement.

 

34

 

(b) In case any Section 11(a)(ii) Event shall occur, then, in any such case, the Company shall
as soon as practicable thereafter give to each registered holder of a Right Certificate and to the
Rights Agent, in accordance with Section 26 hereof, a notice of the occurrence of such event, which
shall specify the event and the consequences of the event to holders of Rights under Section
11(a)(ii) hereof.

Section 26. Notices. Notices or demands authorized by this Agreement to be given or made by
the Rights Agent or by the holder of any Right Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail, postage prepaid, by facsimile transmission
or by nationally-recognized overnight courier addressed (until another address is filed in writing
with the Rights Agent) as follows:

Capital Trust, Inc.

410 Park Avenue, 14th Floor

New York, NY 10022

Facsimile: 212-655-0244

Attention: Chief Financial Officer

Subject to the provisions of Section 21, any notice or demand authorized by this Agreement to
be given or made by the Company or by the holder of any Right Certificate to or on the Rights Agent
shall be sufficiently given or made if sent by first-class mail, postage prepaid, by facsimile
transmission or by nationally-recognized overnight courier addressed (until another address is
filed in writing with the Company) as follows:

American Stock Transfer & Trust Company, LLC

6201 15th Avenue

Brooklyn, NY 11219

Facsimile: 718-921-8200

Attention: General Counsel

Notices or demands authorized by this Agreement to be given or made by the Company or the
Rights Agent to the holder of any Right Certificate (or, prior to the Distribution Date, to the
holder of any certificate representing shares of Common Stock of the Company) shall be sufficiently
given or made if sent by first-class mail, postage prepaid, addressed to such holder at the address
of such holder as shown on the registry books of the Company.

Section 27. Supplements and Amendments. Prior to the occurrence of a Section 11(a)(ii) Event,
the Company and the Rights Agent shall, if the Board of Directors so directs, supplement or amend
any provision of this Agreement as the Board of Directors may deem necessary or desirable without
the approval of any holders of certificates representing shares of Common Stock of the Company.
From and after the occurrence of a Section 11(a)(ii) Event, the Company and the Rights Agent shall,
if the Board of Directors so directs, supplement or amend this Agreement without the approval of
any holder of Right Certificates in order (i) to cure any ambiguity, (ii) to correct or supplement
any provision contained herein which may be defective or inconsistent with any other provisions
herein, (iii) to shorten or lengthen any time period hereunder, or (iv) to change or supplement the
provisions hereof in any manner which the Board of Directors may deem necessary or desirable and
which shall not adversely affect the interests of the holders

 

35

 

of Right
Certificates (other than an Acquiring Person or any Affiliate or Associate of an Acquiring Person); provided,
however, that from and after the occurrence of a Section 11(a)(ii) Event this Agreement may
not be supplemented or amended to lengthen, pursuant to clause (iii) of this sentence, (A) a time
period relating to when the Rights may be redeemed at such time as the Rights are not then
redeemable or (B) any other time period unless such lengthening is for the purpose of protecting,
enhancing or clarifying the rights of, and the benefits to, the holders of Rights (other than an
Acquiring Person or any Affiliate or Associate of an Acquiring Person). Upon the delivery of such
certificate from an appropriate officer of the Company which states that the proposed supplement or
amendment is in compliance with the terms of this Section 27, the Rights Agent shall execute such
supplement or amendment, and any failure of the Rights Agent to so execute such supplement or
amendment shall not affect the validity of the actions taken by the Board of Directors pursuant to
this Section 27. Prior to the occurrence of a Section 11(a)(ii) Event, the interests of the
holders of Rights shall be deemed coincident with the interests of the holders of Common Stock of
the Company. Notwithstanding any other provision hereof, the Rights Agent’s consent must be
obtained regarding any amendment or supplement pursuant to this Section 27 which alters the Rights
Agent’s rights or duties.

Section 28. Successors. All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Rights Agent shall bind and inure to the benefit of their respective
successors and assigns hereunder.

Section 29. Determinations and Actions by the Board of Directors. The Board of Directors
shall have the exclusive power and authority to administer this Agreement and to exercise all
rights and powers specifically granted to the Board of Directors or to the Company, or as may be
necessary or advisable in the administration of this Agreement, including without limitation, the
right and power to (i) interpret the provisions of this Agreement and (ii) make all determinations
and computations deemed necessary or advisable for the administration of this Agreement (including
a determination to redeem or not redeem the Rights or to amend the Agreement). All such actions,
calculations, interpretations and determinations (including, for purposes of clause (y) below, all
omissions with respect to the foregoing) which are done or made by the Board of Directors in good
faith shall (x) be final, conclusive and binding on the Company, the Rights Agent, the holders of
the Rights and all other parties, and (y) not subject any member of the Board of Directors to any
liability to the holders of the Rights or to any other person.

Section 30. Benefits of this Agreement. Nothing in this Agreement shall be construed to give
to any Person other than the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, the Common Stock of the Company) any legal or
equitable right, remedy or claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders of the Right
Certificates (and, prior to the Distribution Date, registered holders of the Common Stock of the
Company).

Section 31. Severability. If any term, provision, covenant or restriction of this Agreement
is held by a court of competent jurisdiction or other authority to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement
shall remain in full force and effect and shall in no way be affected, impaired or invalidated;
provided, however, that notwithstanding anything in this Agreement to the contrary,
if any such term, provision, covenant or restriction is held by such court or authority to be
invalid, void or unenforceable and the Board of Directors determines in good faith that severing
the invalid language from the Agreement would
adversely affect the purpose or effect of the Agreement, the right of redemption set forth in
Section 23 hereof shall be reinstated and shall not expire until the Close of Business on the tenth
day following the date of such determination by the Board of Directors.

 

36

 

Section 32. Governing Law. This Agreement and the Rights issued hereunder shall be governed
by and construed in accordance with the internal laws of Maryland without regard to the principles
of conflicts of laws; provided, however, that all provisions regarding the rights,
obligations, duties and immunities of the Rights Agent shall be governed by and construed in
accordance with, the laws of the State of New York. The courts of the State of Maryland and of the
United States of America located in the State of Maryland (the “Maryland Courts”) shall
have exclusive jurisdiction over any litigation arising out of or relating to this Agreement and
the transactions contemplated hereby, and any Person commencing or otherwise involved in any such
litigation shall waive any objection to the laying of venue of such litigation in the Maryland
Courts and shall not plead or claim in any Maryland Court that such litigation brought therein has
been brought in an inconvenient forum. Notwithstanding the foregoing, the Company and the Rights
Agent may mutually agree to a jurisdiction other than Maryland for any litigation directly between
the Company and the Rights Agent arising out of or relating to this Agreement.

Section 33. Counterparts. This Agreement may be executed in any number of counterparts and
each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument.

Section 34. Descriptive Headings. Descriptive headings of the several Sections of this
Agreement are inserted for convenience only and shall not control or affect the meaning or
construction of any of the provisions hereof.

Section 35. Force Majeure. Notwithstanding anything to the contrary contained herein, neither
the Company nor the Rights Agent shall be liable for any delay or failure in performance resulting
directly from any act or event beyond its reasonable control and without the fault or gross
negligence of the delayed or non-performing party that causes a sudden, substantial or widespread
disruption in business activities, including, without limitation, fire, flood, natural disaster or
act of God, strike or other industrial disturbance, war (declared or undeclared), embargo,
blockade, legal restriction, riot, insurrection, act of terrorism, disruption in transportation,
communications, electric power or other utilities, or other vital infrastructure or any means of
disrupting or damaging internet or other computer networks or facilities (each, a “Force
Majeure Condition”); provided, that such delayed or non-performing party shall use
reasonable commercial efforts to resume performance as soon as practicable. If any Force Majeure
Condition occurs, the party delayed or unable to perform shall give prompt written notice to the
other party, stating the nature of the Force Majeure Condition and any action being taken to avoid
or minimize its effect.

[Remainder of page intentionally left blank]

 

37

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as an
instrument under seal and attested, all as of the day and year first above written.

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	CAPITAL TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Geoffrey G. Jervis
 

Name: Geoffrey G. Jervis
	 	By:
	 	/s/ Stephen D. Plavin
 

Name: Stephen D. Plavin
	 	 
	 

	 	Title: Secretary
	 	 	 	Title: President	 	 

 

38

 

	 	 	 	 	 	 	 	 	 
	ATTEST:	 	AMERICAN STOCK TRANSFER
& TRUST COMPANY, LLC, as Rights Agent	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ David Brill
 

Name: David Brill
	 	By:
	 	/s/ Karishma Kadiani
 

Name: Karishma Kadiani
	 	 
	 

	 	Title: Authorized Officer
	 	 	 	Title: Counsel	 	 

 

39

 

Exhibit A

CAPITAL TRUST, INC.

ARTICLES SUPPLEMENTARY

SERIES A JUNIOR PARTICIPATING PREFERRED STOCK

Capital Trust, Inc., a Maryland corporation (the “Corporation”), hereby certifies to
the State Department of Assessments and Taxation of Maryland that:

FIRST: Under a power contained in Article VI of the charter of the Corporation (the
“Charter”), the Board of Directors of the Corporation (the “Board”), by duly adopted resolutions,
reclassified and designated 50,000 shares of the authorized but unissued shares of preferred stock
of the Corporation, $0.01 par value per share (the “Preferred Stock”), as shares of Series
A Junior Participating Preferred Stock, $0.01 par value per share, with the following preferences,
conversion and other rights, voting powers, restrictions, limitations as to dividends and other
distributions, qualifications and terms and conditions of redemption, which, upon any restatement
of the Charter, shall become part of Article VI of the Charter, with any necessary or appropriate
renumbering or relettering of the sections or subsections hereof:

Section 1. Designation and Amount. The shares of such series shall be designated as
“Series A Junior Participating Preferred Stock” (the “Series A Preferred Stock”) and the
number of shares constituting such series shall be 50,000. Such number of shares may be increased
or decreased by resolution of the Board in accordance with the Charter; provided, that no decrease
shall reduce the number of shares of Series A Preferred Stock to a number less than the number of
shares then outstanding plus the number of shares reserved for issuance upon the exercise of
outstanding options, rights or warrants or upon the conversion of any outstanding securities issued
by the Corporation convertible into Series A Preferred Stock.

Section 2. Dividends and Distributions.

(A) (i) Subject to the rights of the holders of any shares of any class or series of preferred
stock (or any similar stock) ranking prior and superior to the Series A Preferred Stock with
respect to dividends, the holders of shares of Series A Preferred Stock, in preference to the
holders of shares of Class A Common Stock of the Corporation, par value $.01 per share (“Common
Stock”) and of any other class or series of stock ranking junior to the Series A Preferred
Stock, shall be entitled to receive, when, as and if authorized by the Board and declared by the
Corporation out of funds legally available for the purpose, quarterly dividends payable in cash on
the first day of March, June, September and December in each year (each such date being referred to
herein as a “Quarterly Dividend Payment Date”), commencing on the first Quarterly Dividend
Payment Date after the first issuance of a share or fraction of a share of Series A Preferred
Stock, in an amount per share (rounded to the nearest cent) equal to the greater of (a) $0.01 or
(b) subject to the provisions for adjustment hereinafter set forth, 1,000 times the aggregate per
share amount of all cash dividends, and 1,000 times the aggregate per share amount (payable in
kind) of all non-cash dividends or other distributions other than a
dividend payable in shares

 

 

 

 of Common Stock or a subdivision of the outstanding shares of Common Stock
(by reclassification or otherwise), declared on the Common Stock since the immediately preceding
Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date,
since the first issuance of any share or fraction of a share of Series A Preferred Stock. The
multiple of cash and non-cash dividends declared on the Common Stock to which holders of the Series
A Preferred Stock are entitled, which shall be 1,000 initially but which shall be adjusted from
time to time as hereinafter provided, is hereinafter referred to as the “Dividend
Multiple.” In the event the Corporation shall at any time after March 3, 2011 (the “Rights
Declaration Date”) (i) declare or pay any dividend on Common Stock payable in shares of Common
Stock, or (ii) effect a subdivision or combination or consolidation of the outstanding shares of
Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common
Stock) into a greater or lesser number of shares of Common Stock, then in each such case the
Dividend Multiple thereafter applicable to the determination of the amount of dividends which
holders of shares of Series A Preferred Stock shall be entitled to receive shall be the Dividend
Multiple applicable immediately prior to such event multiplied by a fraction, the numerator of
which is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

(ii) Notwithstanding anything else contained in this paragraph (A), the Corporation shall, out
of funds legally available for that purpose, declare a dividend or distribution on the Series A
Preferred Stock as provided in this paragraph (A) immediately after it declares a dividend or
distribution on the Common Stock (other than a dividend payable in shares of Common Stock);
provided that, in the event no dividend or distribution shall have been declared on the Common
Stock during the period between any Quarterly Dividend Payment Date and the next subsequent
Quarterly Dividend Payment Date, a dividend of $0.01 per share on the Series A Preferred Stock
shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date.

(B) Dividends shall begin to accrue and be cumulative on outstanding shares of Series A
Preferred Stock from the Quarterly Dividend Payment Date next preceding the date of issue of such
shares of Series A Preferred Stock, unless the date of issue of such shares is prior to the record
date for the first Quarterly Dividend Payment Date, in which case dividends on such shares shall
begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly
Dividend Payment Date or is a date after the record date for the determination of holders of shares
of Series A Preferred Stock entitled to receive a quarterly dividend and before such Quarterly
Dividend Payment Date, in either of which events such dividends shall begin to accrue and be
cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear
interest. Dividends paid on the shares of Series A Preferred Stock in an amount less than the
total amount of such dividends at the time accrued and payable on such shares shall be allocated
pro rata on a share-by-share basis among all such shares at the time outstanding. The Board of
Directors may fix in accordance with applicable law a record date for the determination of holders
of shares of Series A Preferred Stock entitled to receive payment of a dividend or distribution
declared thereon, which record date shall be not more than such number of days prior to the date
fixed for the payment thereof as may be allowed by applicable law.

 

2

 

Section 3. Voting Rights. The holders of shares of Series A Preferred Stock shall
have the following voting rights:

(A) Subject to the provision for adjustment hereinafter set forth, each share of Series A
Preferred Stock shall entitle the holder thereof to 1,000 votes on all matters submitted to a vote
of the stockholders of the Corporation. The number of votes which a holder of a share of Series A
Preferred Stock is entitled to cast, which shall initially be 1,000 but which may be adjusted from
time to time as hereinafter provided, is hereinafter referred to as the “Vote Multiple.”
In the event the Corporation shall at any time after the Rights Declaration Date (i) declare or pay
any dividend on Common Stock payable in shares of Common Stock, or (ii) effect a subdivision or
combination or consolidation of the outstanding shares of Common Stock (by reclassification or
otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number
of shares of Common Stock, then in each such case the Vote Multiple thereafter applicable to the
determination of the number of votes per share to which holders of shares of Series A Preferred
Stock shall be entitled shall be the Vote Multiple immediately prior to such event multiplied by a
fraction, the numerator of which is the number of shares of Common Stock outstanding immediately
after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event.

(B) Except as otherwise provided in the Charter or by law, the holders of shares of Series A
Preferred Stock and the holders of shares of Common Stock and the holders of shares of any other
stock of this Corporation having general voting rights, shall vote together as one class on all
matters submitted to a vote of stockholders of the Corporation.

(C) (i) Whenever, at any time or times, dividends payable on any shares of Series A Preferred
Stock shall be in arrears in an amount equal to at least six full quarter dividends (whether or not
declared and whether or not consecutive), the holders of record of the outstanding shares of Series
A Preferred Stock shall have the exclusive right, voting separately as a single class, to elect two
directors of the Corporation at a special meeting of stockholders of the Corporation or at the
Corporation’s next annual meeting of stockholders, and at each subsequent annual meeting of
stockholders, as provided below.

(ii) Upon the vesting of such right of the holders of shares of Series A Preferred Stock, the
maximum authorized number of members of the Board of Directors shall automatically be increased by
two and the two vacancies so created shall be filled by vote of the holders of the outstanding
shares of Series A Preferred Stock as hereinafter set forth. A special meeting of the stockholders
of the Corporation then entitled to vote shall be called by the Chairman of the Board, Chief
Executive Officer or President of the Corporation or the Secretary of the Corporation, if requested
in writing by the holders of record of not less than 5% of the shares of Series A Preferred Stock
then outstanding. At such special meeting, or, if no such special meeting shall have been called,
then at the next annual meeting of stockholders of the Corporation, the holders of the shares of
Series A Preferred Stock shall elect, voting as above provided, two directors of the Corporation to
fill the aforesaid vacancies created by the automatic increase in the number of members of the
Board of Directors. At any and all such meetings for such election, the holders of a majority of
the outstanding shares of Series A Preferred Stock shall be necessary to constitute a quorum for
such election, whether present in person or proxy, and such two directors shall be elected by a
plurality of the votes cast by the holders of Series A Preferred Stock. Each such additional
director shall serve until the next annual meeting of stockholders for the election of directors,
or until his successor shall be elected and shall qualify, or until his right to hold such office
terminates pursuant to the provisions of this Section 3(C). Any director elected by holders of
shares of Series A Preferred Stock pursuant to this Section 3(C) may be removed at
any annual or special meeting, by vote of a majority of the stockholders voting as a class who
elected such director, with or without cause. In case any vacancy shall occur among the directors
elected by the holders of shares of Series A Preferred Stock pursuant to this Section 3(C), such
vacancy may be filled by the remaining director so elected, or his successor then in office, and
the director so elected to fill such vacancy shall serve until the next meeting of stockholders for
the election of directors.

 

3

 

(iii) The right of the holders of shares of Series A Preferred Stock, voting
separately as a class, to elect two members of the Board as aforesaid shall continue until, and
only until, such time as all arrears in dividends (whether or not declared) on the Series A
Preferred Stock shall have been paid or declared and set apart for payment, at which time such
right shall terminate, subject to revesting in the event of each and every subsequent default of
the character above-mentioned. Upon any termination of the right of the holders of the Series A
Preferred Stock as a class to vote for directors as herein provided, the term of office of all
directors then in office elected by the holders of shares of Series A Preferred Stock pursuant to
this Section 3(C) shall terminate immediately and the number of directors shall be reduced
accordingly. The voting rights granted by this Section 3(C) shall be in addition to any other
voting rights granted to the holders of the Series A Preferred Stock in this Section 3.

(D) Except as set forth herein, holders of Series A Preferred Stock shall have no voting
rights and their consent shall not be required (except to the extent they are entitled to vote with
holders of Common Stock as set forth herein) for taking any corporate action.

Section 4. Certain Restrictions.

(A) Whenever dividends or distributions payable on the Series A Preferred Stock as provided in
Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and distributions,
whether or not declared, on shares of Series A Preferred Stock outstanding shall have been paid in
full, the Corporation shall not:

(i) declare or pay dividends on, make any other distributions on, or redeem or purchase or
otherwise acquire for consideration any shares of stock ranking junior (either as to dividends or
upon liquidation, dissolution or winding up) to the Series A Preferred Stock;

(ii) declare or pay dividends on or make any other distributions on any shares of stock
ranking on a parity (either as to dividends or upon liquidation, dissolution or winding up) with
the Series A Preferred Stock, except dividends paid ratably on the Series A Preferred Stock and all
such parity stock on which dividends are payable or in arrears in proportion to the total amounts
to which the holders of all such shares are then entitled;

(iii) except as permitted in subsection 4(A)(iv) below, redeem, purchase or otherwise acquire
for consideration shares of any stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Preferred Stock, provided that the
Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock
in exchange for shares of any stock of the Corporation ranking junior (either as to dividends or
upon dissolution, liquidation or winding up) to the Series A Preferred Stock; or

 

4

 

(iv) redeem, purchase or otherwise acquire for consideration any shares of Series A Preferred
Stock, or any shares of any stock ranking on a parity (either as to dividends or upon liquidation,
dissolution or winding up) with the Series A Preferred Stock, except in accordance with a purchase
offer made in writing or by publication (as determined by the Board) to all holders of such shares
upon such terms as the Board, after consideration of the respective annual dividend rates and other
relative rights and preferences of the respective series and classes, shall determine in good faith
will result in fair and equitable treatment among the respective series or classes.

(B) The Corporation shall not permit any subsidiary of the Corporation to purchase or
otherwise acquire for consideration any shares of stock of the Corporation unless the Corporation
could, under subsection (A) of this Section 4, purchase or otherwise acquire such shares at such
time and in such manner.

Section 5. Reacquired Shares. Any shares of Series A Preferred Stock purchased or
otherwise acquired by the Corporation in any manner whatsoever shall become authorized but unissued
shares of preferred stock without designation as to series and may be reissued as part of a new
series of preferred stock to be created by resolution or resolutions of the Board, subject to the
conditions and restrictions on issuance set forth in the Charter or otherwise required by law.

Section 6. Liquidation, Dissolution or Winding Up. Upon any liquidation, dissolution
or winding up of the Corporation (voluntary or otherwise), no distribution shall be made (x) to the
holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution
or winding up) to the Series A Preferred Stock unless, prior thereto, the holders of shares of
Series A Preferred Stock shall have received an amount (the “Series A Liquidation
Preference”) equal to accrued and unpaid dividends and distributions thereon, whether or not
declared, to the date of such payment, plus an amount equal to the greater of (1) $1,000.00 per
share or (2) an aggregate amount per share, subject to the provision for adjustment hereinafter set
forth, equal to 1,000 times the aggregate amount of all cash or other property to be distributed
per share to holders of Common Stock upon such liquidation, dissolution or winding up of the
Corporation, or (y) to the holders of stock ranking on a parity (either as to dividends or upon
liquidation, dissolution or winding up) with the Series A Preferred Stock, except distributions
made ratably on the Series A Preferred Stock and all other such parity stock in proportion to the
total amounts to which the holders of all such shares are entitled upon such liquidation,
dissolution or winding up. In the event the Corporation shall at any time after the Rights
Declaration Date (i) declare or pay any dividend on Common Stock payable in shares of Common Stock,
or (ii) effect a subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in each such case the aggregate
amount per share to which holders of shares of Series A Preferred Stock were entitled immediately
prior to such event under clause (x) of the preceding sentence shall be adjusted by multiplying
such amount by a fraction, the numerator of which is the number of shares of Common Stock
outstanding immediately after such event and the denominator of which is the number of shares of
Common Stock that were outstanding immediately prior to such event.

In the event, however, that there are not sufficient assets available to permit payment in
full of the Series A Liquidation Preference and the liquidation preferences of all other classes
and series of stock of the Corporation, if any, that rank on a parity with the Series A Preferred
Stock in respect
thereof, then the assets available for such distribution shall be distributed ratably to the
holders of the Series A Preferred Stock and the holders of such parity shares in proportion to
their respective liquidation preferences.

 

5

 

Neither the consolidation of nor merging of the Corporation with or into any other corporation
or corporations, nor the sale or other transfer of all or substantially all of the assets of the
Corporation, shall be deemed to be a liquidation, dissolution or winding up of the Corporation
within the meaning of this Section 6.

Section 7. Consolidation, Merger, etc. In case the Corporation shall enter into any
consolidation, merger, combination or other transaction in which the outstanding shares of Common
Stock are exchanged for or changed into other stock or securities, cash and/or any other property,
then in any such case each share of Series A Preferred Stock shall at the same time be similarly
exchanged or changed in an amount per share (subject to the provision for adjustment hereinafter
set forth) equal to 1,000 times the aggregate amount of stock, securities, cash and/or any other
property (payable in kind), as the case may be, into which or for which each share of Common Stock
is changed or exchanged, plus accrued and unpaid dividends, if any, payable with respect to the
Series A Preferred Stock. In the event the Corporation shall at any time after the Rights
Declaration Date (i) declare or pay any dividend on Common Stock payable in shares of Common Stock,
or (ii) effect a subdivision or combination or consolidation of the outstanding shares of Common
Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock)
into a greater or lesser number of shares of Common Stock, then in each such case the amount set
forth in the preceding sentence with respect to the exchange or change of shares of Series A
Preferred Stock shall be adjusted by multiplying such amount by a fraction, the numerator of which
is the number of shares of Common Stock outstanding immediately after such event and the
denominator of which is the number of shares of Common Stock that were outstanding immediately
prior to such event.

Section 8. Redemption. The shares of Series A Preferred Stock shall not be
redeemable; provided, however, that the foregoing shall not limit the ability of
the Corporation to purchase or otherwise deal in such shares to the extent otherwise permitted, by
the Charter or by law.

Section 9. Ranking. Any class or series of shares of stock of the Corporation shall
be deemed to rank: (A) prior to the Series A Preferred Stock, as to the payment of dividends and as
to distribution of assets upon liquidation, dissolution or winding up, if the holders of such class
or series shall be entitled to the receipt of dividends or of amounts distributable upon
liquidation, dissolution or winding up, as the case may be, in preference or priority to the
holders of Series A Preferred Stock; (B) on a parity with the Series A Preferred Stock, as to the
payment of dividends and as to distribution of assets upon liquidation, dissolution or winding up,
whether or not the dividend rates, dividend payment dates or redemption or liquidation prices per
share thereof be different from those of the Junior Preferred Stock, if the holders of such class
or series and the Series A Preferred Stock shall be entitled to the receipt of dividends and of
amounts distributable upon liquidation, dissolution or winding up in proportion to their respective
amounts of accrued and unpaid dividends per share or liquidation preferences, without preference or
priority one over the other; or (C) junior to the Series A Preferred Stock, as to the payment of
dividends or as to the distribution of assets upon liquidation, dissolution or winding up.

 

6

 

Section 10. Fractional Shares. Series A Preferred Stock may be issued in whole
shares or in any fraction of a share that is one one-thousandth (1/1,000th) of a share or any
integral multiple of such fraction, which shall entitle the holder, in proportion to such holder’s
fractional shares, to exercise voting rights, receive dividends, participate in distributions and
to have the benefit of all other rights of holders of Series A Preferred Stock. In lieu of
fractional shares, the Corporation may elect to make a cash payment as provided in the Rights
Agreement for fractions of a share other than one one-thousandth (1/1,000th) of a share or any
integral multiple thereof.

Section 11. Amendment. At any time any shares of Series A Preferred Stock are
outstanding, the Charter and the foregoing Sections 1 through 10, inclusive, and this Section 11
shall not be amended in any manner, including by merger, consolidation or otherwise, which would
materially alter or change the powers, preferences or special rights of the Series A Preferred
Stock so as to affect them adversely without the affirmative vote of the holders of two-thirds or
more of the outstanding shares of Series A Preferred Stock, voting separately as a class.

SECOND: The Series A Preferred Stock has been classified and designated by the Board of
Directors under the authority contained in the Charter.

THIRD: These Articles Supplementary have been approved by the Board of Directors in the manner
and by the vote required by law.

FOURTH: The undersigned officer of the Corporation acknowledges these Articles Supplementary
to be the corporate act of the Corporation and, as to all matters or facts required to be verified
under oath, the undersigned officer acknowledges that, to the best of his knowledge, information
and belief, these matters and facts are true in all material respects and that this statement is
made under the penalties of perjury.

 

7

 

IN WITNESS WHEREOF, the Corporation has caused these Articles Supplementary to be signed in
its name and on its behalf by its President and attested to by its Secretary as of the 3rd

day of

 March 

2011.

	 	 	 	 	 	 	 	 	 
	Attested:	 	CAPITAL TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Geoffrey G. Jervis	 	By:	 	/s/ Stephen D. Plavin	 	 
	 

	 	 

Name: Geoffrey G. Jervis
	 	 	 	 

Name: Stephen D. Plavin
	 	 
	 

	 	Title: Secretary
	 	 	 	Title: President and Chief Executive Officer	 	 

 

 

 

Exhibit B

FORM OF RIGHT CERTIFICATE

Certificate No. R-                    Rights

NOT EXERCISABLE AFTER MARCH 14, 2014 OR EARLIER IF NOTICE OF REDEMPTION IS GIVEN OR THE RIGHTS
ARE TERMINATED IN ACCORDANCE WITH SECTION 7(a) OF THE RIGHTS AGREEMENT (DEFINED BELOW). THE RIGHTS
ARE SUBJECT TO REDEMPTION, AT THE OPTION OF CAPITAL TRUST, INC., AT $0.001 PER RIGHT, ON THE TERMS
SET FORTH IN THE TAX BENEFITS PRESERVATION RIGHTS AGREEMENT BETWEEN CAPITAL TRUST, INC. AND
AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC, AS RIGHTS AGENT, DATED AS OF MARCH 3, 2011 (THE
“RIGHTS AGREEMENT”). UNDER CERTAIN CIRCUMSTANCES SPECIFIED IN SECTION 7(e) OF THE RIGHTS
AGREEMENT, RIGHTS BENEFICIALLY OWNED BY AN ACQUIRING PERSON OR AN ASSOCIATE OR AFFILIATE OF AN
ACQUIRING PERSON (AS SUCH TERMS ARE DEFINED IN THE RIGHTS AGREEMENT) AND ANY SUBSEQUENT HOLDER OF
SUCH RIGHTS MAY BECOME NULL AND VOID.

Right Certificate

CAPITAL TRUST, INC.

This
certifies that
          , or registered assigns, is the registered
owner of the number of Rights set forth above, each of which entitles the owner thereof, subject to
the terms, provisions and conditions of the Tax Benefits Preservation Rights Agreement dated as of
March 3, 2011 (the “Rights Agreement”) between Capital Trust, Inc., a Maryland corporation
(the “Company”), and American Stock Transfer & Trust Company, LLC, a New York limited
liability trust company, as Rights Agent (the “Rights Agent”), to purchase from the Company
at any time after the Distribution Date (as such term is defined in the Rights Agreement) and prior
to the close of business on March 14, 2014 at the office or offices of the Rights Agent designated
for such purpose, or its successors as Rights Agent, one one-thousandth of a fully paid,
non-assessable share of the Series A Junior Participating Preferred Stock (the “Preferred
Stock”) of the Company, at a purchase price of $6.00 per one one-thousandth of a share (the
“Exercise Price”), upon presentation and surrender of this Right Certificate with the Form
of Election to Purchase and the related Certificate duly executed. The number of Rights evidenced
by this Right Certificate (and the number of shares which may be purchased upon exercise thereof)
set forth above, and the Exercise Price per share set forth above, are the number and Exercise
Price as of
 _____, based on the Preferred Stock as constituted at such
date.

Upon the occurrence of a Section 11(a)(ii) Event (as such term is defined in the Rights
Agreement), if the Rights evidenced by this Right Certificate are beneficially owned by (i) an
Acquiring Person or an Affiliate or Associate of any such Person (as such terms are defined in the
Rights Agreement), (ii) a transferee of any such Acquiring Person or Associate or Affiliate
thereof, or (iii) under certain circumstances specified in the Rights Agreement, a transferee of a
Person who, after such transfer, became an Acquiring Person or an Affiliate or Associate of an
Acquiring Person, such Rights
shall become null and void and no holder hereof shall have any right with respect to such
Rights from and after the occurrence of such Section 11(a)(ii) Event.

 

 

 

As provided in the Rights Agreement, the Exercise Price and the number of shares of Preferred
Stock or other securities which may be purchased upon the exercise of the Rights evidenced by this
Right Certificate are subject to modification and adjustment upon the happening of certain events.

This Right Certificate is subject to all of the terms, provisions and conditions of the Rights
Agreement, which terms, provisions and conditions are hereby incorporated herein by reference and
made a part hereof and to which Rights Agreement reference is hereby made for a full description of
the rights, limitations of rights, obligations, duties and immunities hereunder of the Rights
Agent, the Company and the holders of the Right Certificates, which limitations of rights include
the temporary suspension of the exercisability of such Rights under the specific circumstances set
forth in the Rights Agreement. Copies of the Rights Agreement are on file at the principal office
of the Company and the designated office of the Rights Agent and are also available upon written
request to the Company or the Rights Agent.

This Right Certificate, with or without other Right Certificates, upon surrender at the office
or offices of the Rights Agent designated for such purpose, may be exchanged for another Right
Certificate or Certificates of like tenor and date evidencing Rights entitling the holder to
purchase a like aggregate number of shares of Preferred Stock as the Rights evidenced by the Right
Certificate or Certificates surrendered shall have entitled such holder to purchase. If this Right
Certificate shall be exercised in part, the holder shall be entitled to receive upon surrender
hereof another Right Certificate or Certificates for the number of whole Rights not exercised. If
this Right Certificate shall be exercised in whole or in part pursuant to Section 11(a)(ii) of the
Rights Agreement, the holder shall be entitled to receive this Right Certificate duly marked to
indicate that such exercise has occurred as set forth in the Rights Agreement.

Under certain circumstances, subject to the provisions of the Rights Agreement, the Board of
Directors at its option may cause the Company to exchange all or any part of the Rights evidenced
by this Certificate for shares of the Company’s Common Stock or Preferred Stock at an exchange
ratio (subject to adjustment) specified in the Rights Agreement.

Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
may be redeemed by the Board of Directors at its option at a redemption price of $0.001 per Right
(payable in cash, Common Stock or other consideration deemed appropriate by the Board of
Directors).

The Company is not obligated to issue fractional shares of stock upon the exercise of any
Right or Rights evidenced hereby (other than fractions which are integral multiples of one
one-thousandth of a share of Preferred Stock, which may, at the election of the Company, be
evidenced by depositary receipts). If the Company elects not to issue such fractional shares, in
lieu thereof a cash payment will be made, as provided in the Rights Agreement.

No holder of this Right Certificate, as such, shall be entitled to vote or receive dividends
or be deemed for any purpose the holder of shares of Preferred Stock, Common Stock or any other
securities of the Company which may at any time be issuable on the exercise hereof, nor shall
anything contained in the Rights Agreement or herein be construed to confer upon the holder hereof,
as such, any of the
rights of a stockholder of the Company or any right to vote for the election of directors or
upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to
any corporate action, or to receive notice of meetings or other actions affecting stockholders
(except as provided in the Rights Agreement), or to receive dividends or subscription rights, or
otherwise, until the Right or Rights evidenced by this Right Certificate shall have been exercised
as provided in the Rights Agreement.

 

2

 

This Right Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by an authorized signatory of the Rights Agent.

WITNESS the facsimile signature of the proper officers of the Company as a document under
corporate seal.

	 	 	 	 	 	 	 	 	 
	Attested:	 	CAPITAL TRUST, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 	 	 
	 

	 	 

Name: Geoffrey G. Jervis
	 	 	 	 

Name: Stephen D. Plavin
	 	 
	 

	 	Title: Secretary
	 	 	 	Title: President	 	 

	 	 	 	 	 
	Countersigned:	 	 
	 
	 	 	 	 
	AMERICAN STOCK TRANSFER & TRUST COMPANY, LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

 

3

 

[Form of Reverse Side of Right Certificate]

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Right Certificate.)

FOR VALUE RECEIVED
                     hereby sells,
assigns and transfers unto
                                        
(Please print name and address of transferee)
                    

this Right Certificate, together with all right, title and interest therein,
and does hereby irrevocably constitute and appoint
           Attorney,
to transfer the within Right Certificate on the books of the within-named Company, with full power
of substitution.

	 	 	 	 	 
	Dated:                     ,
 _____ 

	 	 	 
	 
	 	 	 	 
	Signature
	 	 

	 	 
	 
	 	 	 	 
	Signature Guaranteed:
	 	 

	 	 
	 

	 	 	 

CERTIFICATE

The undersigned hereby certifies by checking the appropriate boxes that:

(1) the Rights evidenced by this Right Certificate o are o are
not being transferred by or on behalf of a Person who is or was an Acquiring Person or an Affiliate
or Associate of any such Person (as such terms are defined in the Rights Agreement); and

(2) after due inquiry and to the best knowledge of the undersigned, the undersigned
o did o did not directly or indirectly acquire the Rights evidenced by this Right
Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or Associate
of any such Person.

	 	 	 	 	 
	Dated:                     ,
 _____ 

	 	 

Signature
	 	 

NOTICE

The signature to the foregoing Assignment and Certificate must correspond to the name as
written upon the face of this Right Certificate in every particular, without alteration or
enlargement or any change whatsoever.

 

 

 

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to

exercise the Right Certificate.)

To CAPITAL TRUST, INC.:

The undersigned hereby irrevocably elects to exercise
 _____ 

Rights represented by this Right
Certificate to purchase the shares of Preferred Stock issuable upon the exercise of the Rights (or
such other securities of the Company or of any other person which may be issuable upon the exercise
of the Rights) and requests that certificates for such shares be issued in the name of:

	 	 
	Please insert social security or other identifying taxpayer number: 
	 
	 
	 
	 
	 

(Please print name and address)

If such number of Rights shall not be all the Rights evidenced by this Right Certificate or if
the Rights are being exercised pursuant to Section 11(a)(ii) of the Rights Agreement, a new Right
Certificate for the balance of such Rights shall be registered in the name of and delivered to:

	 	 
	Please insert social security or other identifying taxpayer number: 
	 
	 
	 
	 
	 

(Please print name and address)

	 	 	 	 	 
	Dated:                     ,
 _____ 

	 	 

Signature
	 	 

	 	 	 	 	 
	Signature Guaranteed:
	 	 	 	 

 

 

 

CERTIFICATE

The undersigned hereby certifies by checking the appropriate boxes that:

(1) the Rights evidenced by this Right Certificate o are o are
not being exercised by or on behalf of a Person who is or was an Acquiring Person or an Affiliate
or Associate of any such Person (as such terms are defined in the Rights Agreement); and

(2) after due inquiry and to the best knowledge of the undersigned, the undersigned
o did o did not directly or indirectly acquire the Rights evidenced by this
Right Certificate from any Person who is, was or became an Acquiring Person or an Affiliate or
Associate of any such Person.

	 	 	 	 	 
	Dated:                     ,
 _____ 

	 	 

Signature
	 	 

 

 

 

NOTICE

The signature to the foregoing Election to Purchase and Certificate must correspond to the
name as written upon the face of this Right Certificate in every particular, without alteration or
enlargement or any change whatsoever.exv10w1

Exhibit 10.1

 

AMENDED AND RESTATED

EQUITY INTEREST PURCHASE AGREEMENT

among

WCA WASTE CORPORATION,

WCA WASTE SYSTEMS, INC.,

WCA OF MISSISSIPPI, LLC

EWS HOLDINGS, LLC,

WRH GAINESVILLE, LLC,

WRH GAINESVILLE HOLDINGS, LLC,

WRH ORANGE CITY, LLC,

EWS CENTRAL FLORIDA HAULING, LLC,

MACLAND HOLDINGS, INC.,

MACLAND DISPOSAL CENTER, INC.,

MACLAND DISPOSAL INC. II

and

EMERALD WASTE SERVICES, LLC

 

February 28, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I
	 	 	2	 
	1. Transfer of Equity Interests; Delivery of Consideration; Assignment of Accounts and Deferred Revenue; Assignment of Rights
	 	 	2	 
	1.1 Specified Interests
	 	 	2	 
	1.2 Equity Interests Free and Clear of Liens
	 	 	2	 
	1.3 Closing
	 	 	2	 
	1.4 Assignment of Accounts Receivable and Accounts Payable; Deferred Revenue
Adjustment; Prepaid Expense Amount
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II
	 	 	5	 
	2. Purchase Price; Escrow Agreement
	 	 	5	 
	2.1 Payment of Purchase Price
	 	 	5	 
	2.2 Indemnification Shares
	 	 	7	 
	2.3 Adjustments to Indemnification Shares
	 	 	7	 
	 
	 	 	 	 
	ARTICLE III
	 	 	7	 
	3. Representations and Warranties of the Emerald Parties
	 	 	7	 
	3.1 Due Organization
	 	 	8	 
	3.2 Authorization, Validity and Effect of Agreements; Non-Contravention
	 	 	8	 
	3.3 Equity Interests of the Emerald Companies; Sufficiency of Assets
	 	 	9	 
	3.4 Obligations to Issue or Sell Equity Interests
	 	 	9	 
	3.5 Subsidiaries
	 	 	9	 
	3.6 Predecessor Status, etc.
	 	 	10	 
	3.7 Financial Statements
	 	 	10	 
	3.8 Liabilities and Obligations
	 	 	11	 
	3.9 Approvals
	 	 	11	 
	3.10 Permits and Intangibles
	 	 	11	 
	3.11 Personal Property and Leases
	 	 	12	 
	3.12 Customers; Contracts and Commitments
	 	 	12	 
	3.13 Real Property
	 	 	13	 
	3.14 Insurance
	 	 	14	 
	3.15 Employment Matters
	 	 	14	 
	3.16 Parachute Provisions
	 	 	14	 
	3.17 Benefit Plans; ERISA Compliance
	 	 	14	 
	3.18 Conformity with Law
	 	 	16	 
	3.19 Taxes
	 	 	17	 
	3.20 Completeness; No Defaults
	 	 	19	 
	3.21 Government Contracts
	 	 	19	 
	3.22 Absence of Changes
	 	 	19	 
	3.23 Deposit Accounts; Powers of Attorney; Escheatment
	 	 	21	 
	3.24 Proprietary Rights
	 	 	21	 
	3.25 Relations with Governments
	 	 	22	 
	3.26 Environmental Matters
	 	 	22	 
	3.27 No Broker’s or Finder’s Fees
	 	 	24	 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	3.28 Litigation
	 	 	24	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	25	 
	4. Representations and Warranties of the WCA Parties
	 	 	25	 
	4.1 Organization; Standing and Power
	 	 	25	 
	4.2 Capitalization
	 	 	25	 
	4.3 Authorization, Validity and Effect of Agreements; Non-contravention
	 	 	26	 
	4.4 SEC Reports; Financial Statements
	 	 	26	 
	4.5 Litigation
	 	 	28	 
	4.6 Insurance
	 	 	28	 
	4.7 Conformity with Law
	 	 	28	 
	4.8 Relations with Governments
	 	 	29	 
	4.9 Contracts and Commitments
	 	 	29	 
	4.10 Absence of Certain Changes or Events
	 	 	30	 
	4.11 Required Vote
	 	 	31	 
	4.12 Financial Capability; Solvency
	 	 	31	 
	4.13 Valid Issuance of the Securities
	 	 	31	 
	4.14 Offering
	 	 	31	 
	4.15 Purchase for Investment
	 	 	31	 
	4.16 Investor Qualifications
	 	 	31	 
	4.17 No Broker’s or Finder’s Fees
	 	 	31	 
	 
	 	 	 	 
	ARTICLE V
	 	 	32	 
	5. Covenants of Both Parties
	 	 	32	 
	5.1 Emerald Tax Covenants
	 	 	32	 
	5.2 Regulatory and Other Approvals
	 	 	34	 
	5.3 Interim Conduct of the Business
	 	 	34	 
	5.4 WCA Parent’s Approval of Certain Transactions
	 	 	35	 
	5.5 NASDAQ Listing
	 	 	35	 
	5.6 Pre-Closing Access
	 	 	36	 
	5.7 Employee Matters
	 	 	36	 
	5.8 Notice of Developments
	 	 	36	 
	5.9 Exclusivity
	 	 	37	 
	5.10 Confidentiality
	 	 	37	 
	5.11 Publicity
	 	 	38	 
	5.12 Legal Requirements
	 	 	38	 
	5.13 Further Assurances
	 	 	38	 
	5.14 Financial Statements
	 	 	38	 
	5.15 Real Property Documents
	 	 	39	 
	5.16 Use of Emerald Company Name
	 	 	39	 
	5.17 Closure Financial Assurances; Other Bond Obligations
	 	 	39	 
	5.18 Updated Disclosure: Breaches
	 	 	39	 
	5.19 Gulf Coast Business
	 	 	40	 
	5.20 Post-Closing Transfer of Gulf Coast Contracts
	 	 	40	 
	5.21 Escrow Agreements
	 	 	40	 

-ii-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE VI
	 	 	41	 
	6. Survival of Covenants, Representations and Warranties; Indemnification
	 	 	41	 
	6.1 Survival of Covenants, Representations, and Warranties
	 	 	41	 
	6.2 Indemnification by Emerald
	 	 	41	 
	6.3 Indemnification by the WCA Parties
	 	 	41	 
	6.4 Notice and Defense of Claims
	 	 	42	 
	6.5 Payment and Interest
	 	 	43	 
	6.6 Limits of Liability
	 	 	44	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	46	 
	7. Conditions to Closing
	 	 	46	 
	7.1 Conditions to the WCA Parties’ Obligations
	 	 	46	 
	7.2 Conditions to the Emerald Parties’ Obligations
	 	 	48	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	50	 
	8. Termination
	 	 	50	 
	8.1 Termination
	 	 	50	 
	8.2 Effect of Termination
	 	 	50	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	50	 
	9. Certain Definitions
	 	 	50	 
	 
	 	 	 	 
	ARTICLE X
	 	 	57	 
	10. General
	 	 	57	 
	10.1 Costs
	 	 	57	 
	10.2 Entire Agreement
	 	 	57	 
	10.3 Counterparts
	 	 	58	 
	10.4 Notices
	 	 	58	 
	10.5 Modification or Waiver
	 	 	58	 
	10.6 Binding Effect and Assignment
	 	 	59	 
	10.7 Governing Law; Venue; Waiver of Jury Trial
	 	 	59	 
	10.8 Section Headings
	 	 	59	 
	10.9 Severability
	 	 	59	 
	10.10 Drafting
	 	 	60	 
	10.11 References
	 	 	60	 
	10.12 Calendar Days, Weeks, Months and Quarters
	 	 	60	 
	10.13 Gender; Plural and Singular
	 	 	60	 
	10.14 Cumulative Rights
	 	 	60	 
	10.15 No Implied Covenants
	 	 	60	 
	10.16 Indirect Action
	 	 	60	 
	10.17 Attorneys’ Fees
	 	 	60	 
	10.18 Time of the Essence
	 	 	60	 
	10.19 No Third-Party Beneficiaries
	 	 	61	 
	10.20 Specific Performance
	 	 	61	 
	10.21 MacLand Companies; WCA Mississippi
	 	 	61	 

-iii-

 

TABLE OF CONTENTS

(continued)

	 	 	 
	Exhibits	 	 
	Exhibit A
	 	Assignment and Assumption Agreement
	Exhibit B
	 	Voting Agreement
	Exhibit C
	 	Stockholders’ Agreement
	Exhibit D
	 	Registration Rights Agreement

-iv-

 

AMENDED AND RESTATED EQUITY INTEREST PURCHASE AGREEMENT

     THIS AMENDED AND RESTATED EQUITY INTEREST PURCHASE AGREEMENT (this “Agreement”) is made
effective February 28, 2011, by and among WCA Waste Corporation, a Delaware corporation (“WCA
Parent”), WCA Waste Systems, Inc., a Delaware corporation (“WCA Systems”), WCA of Mississippi, LLC,
a Delaware limited liability company (“WCA Mississippi”), EWS Holdings, LLC, a Delaware limited
liability company (“EWS Holdings”), WRH Gainesville, LLC, a Florida limited liability company (“WRH
Gainesville”), WRH Gainesville Holdings, LLC, a Florida limited liability company (“WRH Gainesville
Holdings”), WRH Orange City, LLC, a Florida limited liability company (“WRH Orange City”), EWS
Central Florida Hauling, LLC, a Florida limited liability company (“EWS CF”), Emerald Waste
Services, LLC, a Florida limited liability company (“EWS”), MacLand Holdings, Inc., a Delaware
corporation (“MacLand Holdings”), MacLand Disposal Center, Inc., a Mississippi corporation
(“MacLand I”), and MacLand Disposal Inc. II, a Mississippi corporation (“MacLand II”). WCA Parent
and WCA Systems are collectively referred to as the “WCA Parties,” EWS Holdings, WRH Gainesville,
WRH Gainesville Holdings, WRH Orange City, EWS CF and EWS are collectively referred to as the
“Emerald Parties,” and MacLand Holdings, MacLand I and MacLand II are collectively referred to as
the “MacLand Companies”. Capitalized terms used, but not otherwise defined, herein shall have the
meanings set forth in Article 9.

R E C I T A L S:

     WHEREAS, the Parties have previously entered into the Equity Interest Purchase Agreement (the
“Original Agreement”) dated December 15, 2010 (the “Original Agreement Date”) and the Parties wish
to amend and restate the Original Agreement in its entirety;

     WHEREAS, EWS Holdings is the sole record and beneficial owner of all of the issued and
outstanding limited liability company interests or capital stock, as applicable, of each of (i) WRH
Gainesville, which owns and operates a transfer station located at 5002 SW 41st Boulevard,
Gainesville, Florida 32608 (the “Gainesville Transfer Station”); (ii) WRH Gainesville Holdings,
which holds the permit for the Gainesville Transfer Station; (iii) WRH Orange City, which owns
certain real property (the “Orange City Property”) located at 1378 South Volusia Avenue, Orange
City, Florida 32763; (iv) EWS CF, which owns and operates certain hauling operations servicing EWS
Holdings’ Central Florida operations (the “Central Florida Business”); and (v) EWS, which (except
for the Gulf Coast Business) is a party to certain contracts associated with the Central Florida
Business (the foregoing entities referred to in clauses (i) through (v) collectively as the
“Emerald Companies”), and the limited liability company interests of the Emerald Companies owned by
EWS Holdings (collectively, the “Equity Interests”) represent all of the authorized, issued and
outstanding equity interests of each of WRH Gainesville, WRH Gainesville Holdings, WRH Orange City,
EWS CF, and EWS;

     WHEREAS, EWS Holdings wishes to sell and WCA Systems wishes to buy all of the Equity Interests
of WRH Gainesville, WRH Gainesville Holdings, WRH Orange City, EWS CF and EWS; and

1

 

     WHEREAS, prior to the Closing (defined below), EWS shall transfer all Gulf Coast Assets and
Gulf Coast Liabilities to a Subsidiary of EWS Holdings that is not also an Emerald Company (such
Subsidiary shall hereinafter be referred to as “EWS Gulf Coast”).

A G R E E M E N T:

     NOW, THEREFORE, in consideration of the promises and of the mutual agreements set forth below,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows, intending to be legally bound hereby:

ARTICLE I

1. Transfer of Equity Interests; Delivery of Consideration; Assignment of Accounts and Deferred
Revenue; Assignment of Rights.

     1.1 Specified Interests. Subject to the terms and conditions of this Agreement,
effective as of the Closing Date (as hereinafter defined) the parties will take the following
actions and shall further deliver the consideration specified below and take the further actions
required of them under this Agreement:

          (a) EWS Holdings shall assign, convey, transfer and deliver to WCA Systems 100% of the Equity
Interests.

          (b) WCA Parent will deliver the Purchase Price (defined below), on behalf of EWS Holdings, to
the parties and in the manner set forth in Section 2.1 below.

     1.2 Equity Interests Free and Clear of Liens. All of the Equity Interests shall be
delivered hereunder free and clear of all liens and encumbrances, except for Permitted Liens.

     1.3 Closing. Subject to the satisfaction or waiver of the conditions to the Closing
set forth in Article 7 below, the closing of the transactions contemplated hereby shall
take place by facsimile transmission or by electronic mail in PDF format of all required documents
(with the original executed documents to be delivered by overnight courier) to the offices of
Andrews Kurth LLP, 600 Travis, Suite 4200, Houston, Texas 77002, at such time and place, as shall
be agreed upon by the Parties, but in any event as soon as reasonably practicable following the
satisfaction of the conditions to Closing (which time and place are designated as the “Closing” and
the date on which the Closing occurs is designated as the “Closing Date”). The Parties hereby
agree that the Closing may take place through the exchange of digital copies of all closing
documents, which shall be delivered in escrow to the attorneys for the respective Parties and
disbursed and
delivered upon the satisfaction of all conditions to Closing set forth in this Agreement. The
Parties agree to furnish original executed copies of each of the closing documents to the other
Party no later than two (2) business days following the Closing Date. For accounting purposes and
legal transfer of ownership of the Equity Interests, the Closing shall be effective as of 12:01
a.m. Eastern Standard Time on March 1, 2011 (the “Effective Time”).

2

 

     1.4 Assignment of Accounts Receivable and Accounts Payable; Deferred Revenue Adjustment;
Prepaid Expense Amount.

          (a) Accounts Receivable and Accounts Payable. As soon as practicable prior to the
Closing Date, EWS Holdings shall provide to WCA Parent an estimate of the Accounts Receivable and
Accounts Payable of the Emerald Companies (other than those related to the Gulf Coast Business) as
of the Closing Date, including sufficient background detail regarding the basis for such amounts
(the “Account Worksheet”). As soon as practicable prior to Closing, WCA Parent shall provide any
comments and revisions to the Account Worksheet. At Closing, EWS Holdings shall provide the final
Accounts Receivable and Accounts Payable of the Emerald Companies (other than those related to the
Gulf Coast Business) as of the Effective Time (the “Final Account Worksheet”), in form reasonably
acceptable to WCA Parent. At Closing, the Emerald Companies shall cause the assignment to EWS Gulf
Coast of the Accounts Receivable and Accounts Payable set forth on the Final Account Worksheet
pursuant to an Assignment and Assumption Agreement attached as Exhibit A hereto. From and
after the Closing Date, EWS Gulf Coast shall (i) have the right to collect the Accounts Receivable
and shall be entitled to retain all amounts collected and (ii) be solely responsible for the
payment of the Accounts Payable promptly following Closing. Except as set forth in this
Section 1.4(a), the WCA Parties, including the Emerald Companies after the Effective Time,
shall not have any obligation to EWS Gulf Coast or any other Person with respect to any collection
of the Accounts Receivable set forth on the Final Account Worksheet or with respect to the payment
of the Accounts Payable set forth on the Final Account Worksheet. Notwithstanding the foregoing,
following the Closing WCA Parent shall, and shall cause each of its Subsidiaries (including each
Emerald Company) to, (i) cooperate with and assist EWS Gulf Coast in connection with the collection
of the Accounts Receivable by taking such actions that are reasonably requested by the EWS Gulf
Coast in connection therewith and (ii) cause all correspondence, invoices or any other documents
relating to the Accounts Receivable or Accounts Payable set forth on the Final Account Worksheet
that are received by WCA Parent or any Subsidiary (including any Emerald Company) to be delivered
to EWS Gulf Coast not less often than on a monthly basis. If WCA Parent or any of its Subsidiaries
(including any Emerald Company) receives any payment with respect to the Accounts Receivable, it
shall deliver any such payment to EWS Gulf Coast in the form received no later than the last
business day of the week following its receipt thereof.

          (b) Deferred Revenue. (i) As soon as practicable prior to the Closing Date, EWS
Holdings shall provide to WCA Parent an estimate of the Deferred Revenue of the Emerald Companies
(other than those related to the Gulf Coast Business) as of the Closing Date, including sufficient
background detail regarding the basis for such amounts (the “Deferred Revenue Worksheet”). As soon
as practicable prior to the Closing, WCA Parent shall provide any comments and revisions to the
Deferred Revenue Worksheet. At Closing, EWS Holdings
shall provide the Deferred Revenue of the Emerald Companies (other than those related to the
Gulf Coast Business) as of the Effective Time (the “Final Deferred Revenue Worksheet”), in form
reasonably acceptable to WCA Parent. At Closing, WCA Parent shall deduct from the Net Cash
Purchase Price an amount equal to the Deferred Revenue set forth on the Final Deferred Revenue
Worksheet (such amount, the “Estimated Deferred Revenue Amount”).

               (ii) Within 120 days after the Closing Date, WCA Parent shall deliver to EWS Holdings a
statement (the “Statement”) setting forth the actual Deferred Revenue of the

3

 

Emerald Companies
(other than those related to the Gulf Coast Business) as of the Effective Time (the “Actual
Deferred Revenue Amount”). WCA Parent will prepare the Statement in a manner consistent with the
preparation of the Deferred Revenue Worksheet. The Statement shall contain a supporting schedule
detailing the calculation of the proposed Actual Deferred Revenue Amount and will be accompanied
with copies of all back up materials used in preparing the Statement and determining the Actual
Deferred Revenue Amount.

               (iii) EWS Holdings and its representatives will be entitled to examine the back up materials
used in the preparation of the Statement and determining the Actual Deferred Revenue Amount and to
discuss the preparation of the Statement and determining the Actual Deferred Revenue Amount with
WCA Parent’s accounting personnel. If EWS Holdings disagrees with the calculation of the Actual
Deferred Revenue it must deliver to WCA Parent, within thirty (30) days after the date WCA Parent
delivered the Statement to EWS Holdings, a written description of each such disagreement (the
“Protest Notice”), which such Protest Notice shall be in reasonable detail based on all information
available to EWS Holdings. WCA Parent and EWS Holdings will thereafter negotiate in good faith to
resolve any such disagreements. If, after a period of fifteen (15) days following the date on
which such written the Protest Notice is delivered by EWS Holdings to WCA Parent, EWS Holdings and
WCA Parent have not resolved each such disagreement set forth in the Protest Notice, then either
EWS Holdings or WCA Parent will be entitled to submit such disagreements to Grant Thornton LLP (the
“Disputes Auditor”) so long as such submitting party provides prompt written notice of such
submission to the nonsubmitting party. Within seven days after receipt of such written notice, EWS
Holdings and WCA Parent will each deliver to the Disputes Auditor (with a copy to the other Party)
a written settlement offer setting forth its calculation of the Actual Deferred Revenue Amount
(each, a “Settlement Offer”). WCA Parent will grant (and will cause each Emerald Company to grant)
to the Disputes Auditors reasonable access to WCA Parent and the Emerald Companies’ respective
books and records. WCA Parent will cause their accounting personnel to discuss with the Disputes
Auditor the preparation of the Statement and the calculation of Actual Deferred Revenue Amount and
to grant to the Disputes Auditor reasonable access to the back up materials of WCA Parent’s
accountants and accounting personnel used in the preparation of the Statement and determining the
Actual Deferred Revenue Amount. The Disputes Auditor will resolve the disagreements (the “Final
Resolution”) set forth in the Protest Notice within thirty (30) days after the date on which the
Disputes Auditor is engaged or as soon thereafter as possible. The calculation of the Actual
Deferred Revenue Amount by the Disputes Auditor will be binding upon the Parties. The cost of the
services of the Disputes Auditor will be borne half by EWS Holdings and half by WCA Parent. If
either party fails to deliver a Settlement Offer in accordance with this Section
1.4(b)(iii), the costs of the Disputes Auditor will be borne solely by such party.

               (iv) If the Actual Deferred Revenue Amount exceeds the Estimated Deferred Revenue Amount, EWS
Holdings shall pay to WCA Parent, within fifteen (15) days from the date of delivery of the
Statement (or if a Protest Notice is delivered by EWS Holdings pursuant to this Section
1.4, then within fifteen (15) days from the later of the date that the last of the
disagreements set forth in the Protest Notice are amicably resolved by EWS Holdings and WCA Parent
or the date of delivery to EWS Holdings and WCA Parent of a Final Resolution by the Disputes
Auditor), an amount in cash equal to the amount by which the Actual Deferred Revenue Amount exceeds
the Estimated Deferred Revenue Amount. If the Actual Deferred

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Revenue is less than the Estimated
Deferred Revenue Amount, WCA Parent shall pay to EWS Holdings, within fifteen (15) days from the
date of delivery of the Statement (or if a Protest Notice is delivered by EWS Holdings pursuant to
this Section 1.4, then within fifteen (15) days from the later of the date that the last of
the disagreements set forth in the Protest Notice are amicably resolved by EWS Holdings and WCA
Parent or the date of delivery to EWS Holdings and WCA Parent of a Final Resolution by the Disputes
Auditor), an amount in cash equal to the amount by which the Estimated Deferred Revenue Amount
exceeds the Actual Deferred Revenue Amount.

               (c) Prepaid Items and Reimbursed Expenses. Schedule 1.4(c) hereto sets forth the
Prepaid Item Amount as of the Original Agreement Date (the “Prepaid Item Estimate”) and those
certain capital expenditure expenses that the Emerald Companies have incurred and for which the WCA
Parties have agreed to reimburse the Emerald Parties (collectively, the “Reimbursed Expenses
Amount”), including sufficient background detail regarding the basis for such amounts. As soon as
practicable prior to the Closing, EWS Holdings shall provide to WCA Parent a worksheet (the
“Reimbursement and Prepaid Items Worksheet”) containing (i) an estimate of the Reimbursed Expenses
Amount as of the Closing Date and (ii) an estimate of the Prepaid Item Amount of the Emerald
Companies (other than with respect to the Gulf Coast Business) as of the Closing Date, to be
prepared and calculated consistently with the preparation and calculation of the Prepaid Item
Estimate and the Reimbursed Expenses Amount, respectively, and including sufficient background
detail regarding the basis for such amounts. As soon as practicable prior to the Closing, WCA
Parent shall provide any comments to and request revisions of the Reimbursement and Prepaid Items
Worksheet. At Closing, EWS Holdings shall provide the final Reimbursed Expenses Amount (the “Final
Reimbursed Expenses Amount”) and the final Prepaid Items Amount (the “Final Prepaid Items Amount”)
as of the Effective Time (the “Final Reimbursement and Prepaid Items Worksheet”), in form
reasonably acceptable to WCA Parent. Notwithstanding the foregoing, unless otherwise agreed to by
WCA Parent in writing, in no event shall an amount that was not set forth on Schedule 1.4(c) and
was not approved by WCA Parent after the Original Agreement Date be set forth on the Reimbursement
and Prepaid Items Worksheet or the Final Reimbursement and Prepaid Items Worksheet.

ARTICLE II

2. Purchase Price; Escrow Agreement.

     2.1 Payment of Purchase Price. Upon the terms and conditions set forth in this Agreement, in consideration of the transfer
of the Equity Interests and the covenants and agreements set forth in Article 5, at the
Closing WCA Parent shall pay the aggregate consideration set forth in this Section 2.1
(collectively, the “Purchase Price”) as follows:

          (a) the amount (such amount, the “Comerica Release Amount”) necessary to cause Comerica Bank,
a Texas banking association (“Comerica”), to release all Liens in favor of Comerica under the
Comerica Credit Facility on any assets or properties of the Emerald Companies, as set forth in a
payoff letter (which such payoff letter shall provide that all such Liens shall be terminated and
released (including the termination of all UCC financing statements filed by or on behalf of
Comerica) upon receipt by Comerica of the Comerica Release

5

 

Amount) to be delivered by Comerica to
the Emerald Parties and WCA Parent prior to the Closing (the “Comerica Payoff Letter”), shall be
paid by wire transfer of immediately available funds in accordance with the wire transfer
instructions set forth in the Comerica Payoff Letter;

          (b) the amount (such aggregate amount the “Other Indebtedness Payment Amount”) necessary to
satisfy in full certain indebtedness, including amounts owed pursuant to vehicle leasing
arrangements, described on Schedule 2.1(b) (which such schedule can be amended or supplemented at
any time by the Emerald Parties up to the Closing) owed to such creditors identified on Schedule
2.1(b) (the “Other Creditors”), as set forth, in each case, in a payoff letter (which each such
payoff letter shall provide that all Liens on any assets or properties of any Emerald Company shall
be terminated and released (including the termination of all UCC financing statements filed by or
on behalf of the applicable Other Creditor) and, to the extent applicable, that a bill of sale
evidencing the transfer of title to all property that was the subject of any lease described on
Schedule 2.1(b) shall be delivered as promptly as practicable after the Closing) upon receipt by
each such Other Creditor of such Other Creditor’s portion of the Other Indebtedness Payment Amount
set forth on such Other Creditor’s payoff letter) to be delivered by EWS Holdings to WCA Parent
prior to Closing (each such payoff letter descried in this Section 2.1(b), an “Other
Creditor Payoff Letter”), shall be paid by wire transfer of immediately available funds in
accordance with the wire transfer instructions set forth in each Other Creditor Payoff Letter;

          (c) the amount (such aggregate amount the “Transaction Expenses Amount”) necessary to satisfy
in full all transaction expenses owed by any of the Emerald Companies to each of (1) Livingstone
Partners, (2) Katten Muchin Rosenman LLP, and (3) Lowndes, Drosdick, Doster, Kantor & Reed, P.A.
(each of the foregoing, an “Emerald Professional”) as set forth, in each case, in a payoff letter
to be delivered by EWS Holdings to WCA Parent prior to Closing (each such payoff letter descried in
this Section 2.1(c), an “Emerald Professional Payoff Letter”), shall be paid by wire
transfer of immediately available funds in accordance with the wire transfer instructions set forth
in each Emerald Professional Payoff Letter;

          (d) an amount in cash equal to the Base Cash Purchase Price less (i) the Comerica
Release Amount, less (ii) the Other Indebtedness Payment Amount, less (iii) the
Estimated Deferred Revenue Amount, less (iv) the Transaction Expenses Amount plus
(iv) the sum of (A) the Final Reimbursed Expenses Amount and (B) the Final Prepaid Items Amount,
such net amount (the “Net Cash Purchase Price”), to be paid by wire transfer of immediately
available funds in accordance with the wire transfer instructions to be delivered by EWS
Holdings to WCA Parent in writing prior to Closing;

          (e) (i) a stock certificate representing 180,723 shares (the “First Indemnification Shares”)
of common stock, par value $0.01 per share, of WCA Parent (the “WCA Parent Common Stock”) and a
stock certificate representing 722,891 shares (the “Second Indemnification Shares” and, together
with the First Indemnification Shares, the “Indemnification Shares”) of WCA Parent Common Stock,
both to be deposited by WCA Parent on the Closing Date into an escrow account (the “Escrow Fund”)
in accordance with Section 2.2 for the benefit of EWS Holdings and (ii) a stock certificate
representing 1,506,025 shares (the “Distributed Shares,” and together with the Indemnification
Shares, the “Closing Shares”) of

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WCA Parent Common Stock to be issued by WCA Parent on the Closing Date to EWS Holdings; and

          (f) an amount in cash necessary to satisfy in full certain obligations incurred for the
purchase of vehicles described on Schedule 2.1(f) shall be paid by wire transfer of immediately
available funds in accordance with the payment instructions set forth on Schedule 2.1(f).

     2.2 Indemnification Shares.

          (a) The Indemnification Shares will be deposited by WCA Parent at the Closing with BOKF, NA
dba Bank of Texas (the “Escrow Agent”) in accordance with the terms and conditions of an escrow
agreement, in form reasonably satisfactory to all Parties (the “Escrow Agreement”), and will be
distributed by the Escrow Agent in accordance with Section 2.2(b).

          (b) The Indemnification Shares shall be held in the Escrow Fund to satisfy the indemnification
obligations of EWS Holdings pursuant to Article 6 and shall be held in the Escrow Fund
pursuant to the terms of the Escrow Agreement and Section 6.5 (i), in the case of the First
Indemnification Shares, until May 29, 2011; provided, that, in the event that any Claim has been
made by a WCA Indemnified Person pursuant to Article 6 or in the event that WCA Parent
believes in good faith that all Accounts Payable of the Emerald Companies have not been paid in
full by such date, such later date as WCA Parent provides an Accounts Payable Notice (as defined in
the Escrow Agreement) to the Escrow Agent or such later date as provided in the Escrow Agreement,
and (ii) in the case of the Second Indemnification Shares, until the third anniversary of the
Closing Date.

     2.3 Adjustments to Indemnification Shares. If, at any time subsequent to the Closing
and prior to the date that no Indemnification Shares remain held in the Escrow Fund, the number of
shares of WCA Parent Common Stock are proportionately increased or decreased, changed or converted
into or exchanged for a different number or kind of shares of stock or other securities of WCA
Parent or of another corporation or other property, including cash (whether as a result of a stock
split, stock dividend, combination or exchange of shares, exchange for other securities,
reclassification,
reorganization, redesignation, merger, consolidation, recapitalization or otherwise), then any
Indemnification Shares held in an Escrow Fund shall be adjusted in a manner to appropriately and
equitably reflect any such increase or decrease, change, conversion or exchange in the manner set
forth in the Escrow Agreement with respect to such Indemnification Shares.

ARTICLE III

3. Representations and Warranties of the Emerald Parties. Prior to or upon the execution of this
Agreement, EWS Holdings has delivered to the WCA Parties a schedule (the “Emerald Disclosure
Schedule”) setting forth, among other things, items the disclosure of which is necessary or
appropriate either in response to an express disclosure requirement contained in any provision
hereof or as an exception to one or more representations or warranties contained in Article
3 or one or more of its covenants contained in Article 5. The inclusion of any

7

 

information in the Emerald Disclosure Schedule shall not be deemed to be an admission or
acknowledgment, in and of itself, that such information is required by the terms hereof to be
disclosed, is material to the Emerald Parties, has resulted in or would result in a Material
Adverse Effect, or is outside the ordinary course of business.

     The Emerald Parties (other than EWS with respect to its Gulf Coast Business) make the
following representations and warranties jointly and severally, and represent and warrant that all
of the following representations and warranties are true as of the Original Agreement Date:

     3.1 Due Organization.

          (a) EWS Holdings is a limited liability company, duly organized, validly existing and in good
standing under the laws of the State of Delaware, and has all requisite power and authority to
carry on its business in the places and in the manner as now conducted.

          (b) Each of WRH Gainesville, WRH Gainesville Holdings, WRH Orange City and EWS CF and EWS is a
limited liability company, duly organized, validly existing and in good standing under the laws of
the state of Florida, and each has all requisite power and authority to carry on its respective
business in the places and in the manner as now conducted, and each has all requisite power and
authority to carry on its respective business in the places and in the manner as now conducted.
The records and minutes books of each Emerald Company (other than EWS with respect to its Gulf
Coast Business), as heretofore made available to WCA Parent, are correct and complete with respect
to matters occurring on and after January 1, 2008, and will be delivered to WCA Parent at the
Closing.

     3.2 Authorization, Validity and Effect of Agreements; Non-Contravention.

          (a) The execution and delivery of this Agreement by each Emerald Party and the performance of
the transactions contemplated herein by each Emerald Party have been duly and validly authorized by
each Emerald Party. This Agreement constitutes, and all agreements
and documents contemplated hereby when executed and delivered pursuant hereto (collectively,
the “Transaction Documents”) for value received will constitute, the valid and legally binding
obligations of the Emerald Parties to this Agreement and each of the Transaction Documents to which
such Emerald Parties are parties enforceable in accordance with their terms, subject to (i)
applicable bankruptcy, insolvency or other similar laws relating to creditor’s rights generally and
(ii) general principles of equity, regardless of whether considered in a proceeding in equity or at
law.

          (b) Except as set forth in Section 3.2(b) of the Emerald Disclosure Schedule, the execution
and delivery of this Agreement by the Emerald Parties and each of the other Transaction Documents
to which such Emerald Parties are parties does not, and the consummation of the transactions
contemplated hereby by the Emerald Parties will not, (i) result in the breach of any term or
provision of, or constitute a default under, or result in the acceleration of or entitle any party
to accelerate, terminate or modify (whether after the giving of notice or the lapse of time or
both) any obligation under, or result in the creation or imposition of any Lien (defined below)
upon any part of the property of the Emerald Parties (other than EWS with respect to its Gulf Coast
Business) pursuant to any provision of any order, judgment,

8

 

arbitration award, injunction, decree,
indenture, mortgage, lease, license, lien, or other agreement or instrument to which any Emerald
Party (other than EWS with respect to its Gulf Coast Business) is a party or by which it is bound;
or (ii) violate or conflict with any provision of the respective Organizational Documents of the
Emerald Parties, except with respect to clause (i) for any such event that is not reasonably
expected to have a Material Adverse Effect on the Emerald Parties.

     3.3 Equity Interests of the Emerald Companies; Sufficiency of Assets.

          (a) All of the issued and outstanding shares of capital stock or limited liability company
interests of the Emerald Companies, as applicable, are set forth on Section 3.3(a) of the Emerald
Disclosure Schedule. All of the shares of capital stock and limited liability company interests of
the Emerald Companies, as applicable, have been duly authorized and validly issued, are fully paid
and nonassessable, are owned of record and beneficially by the parties set forth in Section 3.3(a)
of the Emerald Disclosure Schedule, and, except as set forth on Section 3.3(a) of the Emerald
Disclosure Schedule, are free and clear of all Liens.

          (b) Except as set forth on Section 3.3(b) of the Emerald Disclosure Schedule, the assets
owned, leased or licensed by the Emerald Companies (other than EWS with respect to its Gulf Coast
Business) constitute all of the assets, tangible and intangible, of any nature whatsoever,
necessary to operate the Acquired Businesses as currently conducted.

     3.4 Obligations to Issue or Sell Equity Interests. Except as set forth on Section 3.4
of the Emerald Disclosure Schedule, there are no (a) outstanding securities or obligations that are
convertible into or exchangeable for any shares of capital stock or limited liability company
interests, as applicable, or any other securities of any Emerald Company, or (b) right of first
refusal, option, warrant, call, conversion right, contracts,
arrangements or commitments, written or otherwise, of any kind which obligates any Emerald
Company, or under which any Emerald Company is or may become bound, to issue or sell any of its
authorized but unissued shares of capital stock or limited liability company interests, as
applicable, or any other securities or equity interests. Without limiting the generality of the
foregoing, except as set forth on Section 3.4 of the Emerald Disclosure Schedule, there is no valid
basis upon which any Person (other than EWS Holdings) may claim to be in any way the record or
beneficial owner of, or to be entitled to acquire (of record or beneficially), any share of capital
stock or limited liability company interest, as applicable, or any other security or equity
interest of any Emerald Company, and no Person has made or, to the Knowledge of the Emerald
Parties, threatened to make any such claim. In addition, no Emerald Company has any obligation
(contingent or otherwise) to purchase, redeem or otherwise acquire any of its shares of capital
stock or limited liability company interests, as applicable, or any other securities or equity
interests therein or to pay any dividend or make any distribution in respect thereof.

     3.5 Subsidiaries. Except as set forth in Section 3.5 of the Emerald Disclosure
Schedule, no Emerald Company (a) presently owns, of record or beneficially, or controls, directly
or indirectly, any capital stock, securities convertible into capital stock, membership interest,
partnership interest, limited partnership interest or any other equity interest in any corporation,
limited liability company, partnership, limited partnership, association or business

9

 

entity; or (b)
is, directly or indirectly, a participant in any joint venture, partnership or other non-corporate
entity, save and except any joint venture solely with another Emerald Company.

     3.6 Predecessor Status, etc. To the Knowledge of the Emerald Parties, set forth on
Section 3.6 of the Emerald Disclosure Schedule is a list of all of the names of all predecessors of
each Emerald Company (other than EWS with respect to its Gulf Coast Business), including the names
of any entities from whom each Emerald Company (other than EWS with respect to its Gulf Coast
Business) previously acquired significant assets or with whom each Emerald Company merged. To the
Knowledge of the Emerald Parties, except as disclosed in Section 3.6 of the Emerald Disclosure
Schedule, no Emerald Company has ever been a subsidiary or division of another company nor been a
part of an acquisition which was later rescinded.

     3.7 Financial Statements.

          (a) Prior to the Closing Date, the Emerald Parties have furnished to the WCA Parties the
audited financial statements (balance sheet, statement of operations and statement of cash flows
and related footnotes) of each of the Emerald Companies as, at and for the fiscal years ended
December 31, 2008 and December 31, 2009 (collectively, the “Emerald Financial Statements”). Prior
to the Original Agreement Date, the Emerald Parties have furnished to WCA Parent consolidated
audited financial statements (balance sheet, statement of operations and statement of cash flows
and related footnotes) of Waste Recyclers Holdings, LLC as, at and for the fiscal years ended
December 31, 2008 and December 31, 2009.

          (b) The Emerald Parties have furnished to the WCA Parties the unaudited financial statements
(balance sheet, statement of operations and statement of cash flows and related footnotes) of the
Emerald Companies (other than with respect to the Gulf Coast Business) as, at and for the three
month periods ended March 31, 2010, June 30, 2010 and September 30, 2010 and the one month and ten
month periods ended October 31, 2010 (collectively, the “Interim Emerald Financial Statements”).

          (c) The Emerald Financial Statements and the Interim Emerald Financial Statements,
collectively, fairly present in all material respects the financial condition and operating results
of the Emerald Companies (other than with respect to the Gulf Coast Business) as of the dates
indicated, and the results of their operations as of the dates and for the periods indicated, and
were prepared in accordance with GAAP, except as may be otherwise specified in such financial
statements or the notes thereto or in Section 3.7(c) of the Emerald Disclosure Schedule and except
that unaudited financial statements may not contain all footnotes required by GAAP and year-end
adjustments. Since January 1, 2008, the Emerald Companies have maintained a standard system of
accounting established in accordance with GAAP. Since January 1, 2008, there are no significant
deficiencies or material weaknesses in the internal controls over financial reporting of the
Emerald Companies.

          (d) the Final Account Worksheet, Final Deferred Revenue Worksheet and Approved Prepaid Expense
Amount delivered at Closing will be complete and accurate in all respects as of the Closing Date.

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     3.8 Liabilities and Obligations.

          (a) The Emerald Parties do not have any liabilities of any kind, character and description,
whether accrued, obsolete, secured or unsecured, contingent or otherwise, except (i) to the extent
clearly and accurately reflected and accrued for or fully reserved against in the Interim Emerald
Financial Statements, (ii) for liabilities and obligations which have arisen after October 31, 2010
(the “Latest Balance Sheet Date”) in the ordinary course of business consistent with past custom
and practice, (iii) as set forth in Section 3.8(a) of the Emerald Disclosure Schedule, (iv) with
respect to the Gulf Coast Business, (v) any Transfer Station Liabilities (as defined below) or (vi)
for liabilities that would not reasonably be expected to have a Material Adverse Effect on the
Emerald Parties.

          (b) At Closing, after taking into account the repayment of indebtedness of the Emerald
Companies provided for by Section 2.1, there will be no outstanding indebtedness or
liabilities outstanding under any operating leases for any of the Emerald Companies except for
those operating leases set forth on Section 3.8(b) of the Emerald Disclosure Schedule.

          (c) Section 3.8(c) of the Emerald Disclosure schedule lists each letter of credit of each
Emerald Company.

     3.9 Approvals. Except as set forth on Section 3.9 of the Emerald Disclosure Schedule, no authorization,
consent or approval of, or registration or filing with, any Governmental or Regulatory Authority or
any other Person is or was required to be obtained or made by any Emerald Party in connection with
the execution, delivery or performance of this Agreement or any of the Transaction Documents.

     3.10 Permits and Intangibles.

          (a) The Emerald Parties (other than EWS with respect to its Gulf Coast Business) hold all
certificates of need, permits, titles (including motor vehicle titles and current registrations),
fuel permits, Licenses, orders, approvals, franchises and certificates (“Permits”) (other than
those relating to environmental matters, which are exclusively covered in Section 3.26) as
are adequate for the operation of the Emerald Companies (other than EWS with respect to its Gulf
Coast Business), as presently constituted other than would not reasonably be expected to have a
Material Adverse Effect on the Emerald Parties and no Emerald Party has received any written notice
or, to the Knowledge of the Emerald Parties, any oral notice of violation of such Permits.

          (b) Other than with respect to EWS’ Gulf Coast Business, the Emerald Parties have delivered to
the WCA Parties a description and copies as of the Original Agreement Date, of all of the Emerald
Companies’ material reports, notifications, pending permit applications and engineering studies
filed or submitted or required to be filed or submitted to governmental agencies, any other
governmental approvals or applications for approval and of all material written notifications from
such governmental agencies with respect to the Permits, in each case with respect to such items
that have been received or obtained by the Emerald Parties since January 1, 2008 or which are
otherwise in the possession of the Emerald Parties.

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     3.11 Personal Property and Leases. Section 3.11 of the Emerald Disclosure Schedule
sets forth an accurate list and a complete description as of the Original Agreement Date of all of
the personal property and leases for equipment used by the Emerald Companies (other than EWS with
respect to its Gulf Coast Business) in excess of $10,000 per annum. All assets used by the Emerald
Companies (other than EWS with respect to its Gulf Coast Business) are either owned by an Emerald
Company (other than EWS with respect to its Gulf Coast Business) or leased or licensed as indicated
on Section 3.11 of the Emerald Disclosure Schedule. Except (i) as described on Section 3.11 of the
Emerald Disclosure Schedule, (ii) for Permitted Liens or (iii) for any Liens that remain in favor
of Comerica after the Closing Date as an administrative convenience in its capacity as both the
collateral agent under the Comerica Credit Facility and as the collateral agent on behalf of the
lenders to the WCA Parties, there are no Liens on any personal property or assets owned by any
Emerald Company (other than EWS with respect to its Gulf Coast Business).

     3.12 Customers; Contracts and Commitments.

          (a) Section 3.12(a) of the Emerald Disclosure Schedule sets forth the names and addresses of
all of the customers of the Emerald Companies (other than EWS with respect to its Gulf Coast
Business) as of the Original Agreement Date. To the Knowledge of the Emerald Parties, the
consummation of the transactions contemplated by this Agreement will not have a Material Adverse
Effect on the business relationship of the Emerald Companies (other than EWS with respect to its
Gulf Coast Business) with any customer and the Emerald Parties have received no written notice or,
to the Knowledge of the Emerald Parties, oral notice to such effect.

          (b) Section 3.12(b) of the Emerald Disclosure Schedule sets forth a true and complete list of
the following Emerald Companies’ contracts, agreements and other instruments and arrangements (i)
by which any Emerald Company (other than EWS with respect to its Gulf Coast Business) is bound or
(ii) to which any Emerald Company (other than EWS with respect to its Gulf Coast Business) is a
party (other than any Pension Plan, Welfare Plan or Benefit Plan) (the “Contracts”):

               (i) arrangements relating to providing solid waste collection, transportation or disposal
services to any Person or entity in excess of $50,000;

               (ii) Licenses, Permits and other material arrangements concerning or relating to real estate
owned or leased by any Emerald Company (other than EWS with respect to its Gulf Coast Business);

               (iii) employment, consulting, collective bargaining or other similar arrangements relating to
or for the benefit of current employees, independent contractors or consultants;

               (iv) agreements and instruments relating to the borrowing of money or obtaining of or
extension of credit;

               (v) brokerage or finder’s agreements;

               (vi) contracts involving a sharing of profits or expenses;

12

 

               (vii) acquisition or divestiture agreements;

               (viii) service or operating agreements, manufacturer’s representative agreements or
distributorship agreements in excess of $25,000;

               (ix) arrangements limiting or restraining any Emerald Company (other than EWS with respect to
its Gulf Coast Business) from engaging or competing in any lines of business or with any Person;

               (x) leases for personal property requiring aggregate annual payments in excess of $25,000;

               (xi) any arrangement with any labor union;

               (xii) any settlement or similar agreement with continuing financial or compliance obligations
to any Emerald Company (other than EWS with respect to its Gulf Coast Business); and

               (xiii) any other agreements or arrangements that are material to the operation of the Emerald
Companies (other than EWS with respect to its Gulf Coast Business).

     3.13 Real Property. Except as set forth on Section 3.13 of the Emerald Disclosure
Schedule:

          (a) WRH Gainesville and WRH Orange City each have good and marketable title to real property
owned by each of them described on Section 3.13 of the Emerald Disclosure Schedule
(respectively, each “Emerald Company’s Real Property”), free and clear of any Lien, other than the
Permitted Liens, and no Person has an option to purchase all or any portion of such real property;
provided that promptly following the delivery by the Title Insurer of the commitments for title
insurance referred to in Section 5.15, the Emerald Parties may update Section 3.13 of the
Emerald Disclosure Schedule prior to the Closing to reflect the information regarding each Emerald
Company’s Real Property received from the Title Insurer;

          (b) No Emerald Company’s Real Property is subject to any pending or, to the Knowledge of the
Emerald Parties, threatened, condemnation Proceedings against all or part thereof;

          (c) To the Knowledge of the Emerald Parties, no Emerald Company has ever granted any Person or
entity a lease, sublease, license, concession, or other right, written or oral, to use or occupy
such Emerald Company’s Real Property, nor has any Emerald Company ever entered into an option,
right of first refusal, or other agreement that would permit any Person to purchase all or part of
such Emerald Company’s Real Property;

          (d) No Emerald Company has ever owned, occupied, or conducted operations on any real property,
other than that respective Emerald Company’s Real Property or any other real property owned or
leased by any Affiliate of such Emerald Company; and

13

 

          (e) No Emerald Company (other than EWS with respect to its Gulf Coast Business) has ever
entered into an option, right of first refusal or other agreement that would permit or obligate
such Emerald Company to purchase any real property.

     3.14 Insurance. Set forth on Section 3.14 of the Emerald Disclosure Schedule is a
list of all current policies covering general liability, excess liability, product liability, auto
liability, foreign liability, all-risk property or environmental liability of the Emerald Companies
(other than EWS with respect to its Gulf Coast Business), as well as an accurate list of: (a) all
of their respective insurance loss runs and worker’s compensation claims received since January 1,
2008; (b) all open claims; and (c) to the Knowledge of the Emerald Parties, all circumstances
reasonably likely to result in a claim. All such policies are currently in full force and effect.
Except as set forth on Section 3.14 of the Emerald Disclosure Schedule, no insurance policy of any
Emerald Company (other than EWS with respect to its Gulf Coast Business) has ever been canceled, and
no Emerald Company (other than EWS with respect to its Gulf Coast Business) has ever been denied
insurance coverage. To the Knowledge of the Emerald Parties, Payroll Management, Inc. or its
Affiliates (“PMI”) provides workers compensation insurance on behalf of the Emerald Companies
pursuant to the Client Services Contract between EWS and PMI.

     3.15 Employment Matters. Section 3.15 of the Emerald Disclosure Schedule contains a
list of all employees engaged to perform services for the Emerald Companies (other than EWS with
respect to its Gulf Coast Business), including all employees (the “Emerald Company Employees”)
leased pursuant to a Client Service Contract between EWS and PMI. Prior to the Closing Date, the
Emerald Parties will have delivered to the WCA Parties a schedule setting forth the annual
compensation, hourly wages, daily rate of pay, sick pay and other benefits for all Emerald Company
Employees. PMI has paid or caused to be paid in full to all Emerald Company Employees all wages,
salaries, commissions on jobs finished, bonuses and other direct compensation due and payable as of
the Original Agreement Date for all services performed (including accrued vacation) as of the
Original Agreement Date and all amounts required to be reimbursed to the Emerald Company Employees.
The Emerald Companies (other than EWS with respect to its Gulf Coast Business) are in material
compliance with all federal, state, local and foreign laws and regulations respecting employment
and employment practices, terms and conditions of employment and wages and hours.

     3.16 Parachute Provisions. Set forth on Section 3.16 of the Emerald Disclosure
Schedule is a list of any and all of the Emerald Companies’ employment agreements and any other
agreements containing “parachute” provisions, and deferred compensation agreements, together with
copies of such plans, agreements and any trusts related thereto, and classifications of employees
covered thereby as of the Original Agreement Date.

     3.17 Benefit Plans; ERISA Compliance.

          (a) Section 3.17(a) of the Emerald Disclosure Schedule contains a list of each “employee
pension benefit plan” (as defined in Section 3(2) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”)) (sometimes referred to in this Agreement as “Pension Plans”), “employee
welfare benefit plans” (as defined in Section 3(1) of ERISA) (sometimes referred to in this
Section 3.17 as “Welfare Plans”) or any other Benefit Plans, as

14

 

defined below maintained by
any Emerald Party (other than EWS with respect to its Gulf Coast Business) with respect to the
Emerald Company Employees.

          (b) No Emerald Company (other than EWS with respect to its Gulf Coast Business) maintains any
Pension Plan or Benefit Plan intended to be a tax qualified plan described Section 401(a) of the
Code, and no such plan which is maintained by any Emerald Party is or has been subject to the
minimum funding rules of Code Section 412 or ERISA Section 302, or the plan termination insurance
provisions of Title IV of ERISA.

          (c) There are no voluntary employee benefit associations maintained by any Emerald Company
(other than EWS with respect to its Gulf Coast Business) that are intended to be exempt from
federal income tax under Section 501(c)(9) of the Internal Revenue Code of 1986, as amended (the
“Code”).

          (d) Except as set forth in Section 3.17(d) of the Emerald Disclosure Schedule, neither the
execution of this Agreement nor the consummation of the transactions contemplated by this Agreement
will give rise to, or trigger, any change of control, severance or other similar provisions in any
Pension Plan, Welfare Plan or Benefit Plan that will obligate any Emerald Company (other than EWS
with respect to its Gulf Coast Business) to make such payment. Except as set forth in Section
3.17(d) of the Emerald Disclosure Schedule, the consummation of any transaction contemplated by
this Agreement will not result in any: (i) payment (whether of severance pay or otherwise)
becoming due from the Emerald Companies (other than EWS with respect to its Gulf Coast Business) to
any of their respective officers, employees, former employees or directors or to the trustee under
any “rabbi trust” or similar arrangement; (ii) benefit under any Benefit Plan applicable to the
Emerald Companies (other than EWS with respect to its Gulf Coast Business) being established or
becoming accelerated, vested or payable; or (iii) payment or series of payments by any Emerald
Company (other than EWS with respect to its Gulf Coast Business), directly or indirectly, to any
Person that would constitute a “parachute payment” within the meaning of Section 280G of the Code.

          (e) Except as set forth in Section 3.17(e) of the Emerald Disclosure Schedule, no Emerald
Company (other than EWS with respect to its Gulf Coast Business) provides any material
post-retirement medical, health, disability or death protection coverage or contribute to or
maintain any employee welfare benefit plan which provides for medical, health, disability or death
benefit coverage following termination of employment by any officer, director or employee except as
is required by Section 4980B of the Code or other applicable statute, nor has any Emerald Company
(other than EWS with respect to its Gulf Coast Business) made any representations, agreements,
covenants or commitments to provide that coverage.

          (f) With respect to any Welfare Plan applicable to the Emerald Companies (other than EWS with
respect to its Gulf Coast Business), except as would not reasonably be expected to result in
material liability to the Emerald Companies (i) each such Welfare Plan that is a group health plan,
as such term is defined in Section 5000(b)(1) of the Code, complies in all material respects with
any applicable requirements of Part 6 of Title I of ERISA and Section 4980B(f) of the Code and (ii)
each such Welfare Plan (including any such plan covering retirees or other former employees) may be
amended or terminated with respect to health claims incurred after the date of such amendment
(presuming proper notice thereof) without liability to any

15

 

Emerald Company (other than EWS with
respect to its Gulf Coast Business) on or at any time after the Closing Date.

          (g) Except as would not reasonably be expected to result in material liability to the Emerald
Companies, all contributions by any Emerald Company (other than EWS with respect to its Gulf Coast
Business) required by law or by a collective bargaining or other agreement to be made under any
Pension Plan, Welfare Plan or Benefit Plan with respect to all periods through the Closing Date,
including a pro rata share of contributions due for the current plan year, will have been made by
such date.

          (h) No Emerald Company (other than EWS with respect to its Gulf Coast Business) has nor, as of
the Closing, will any Emerald Company (other than EWS with respect to its Gulf Coast Business)
have, any liability or obligation for taxes, penalties, contributions, losses, claims, damages,
judgments, settlement costs, expenses, costs, or any other liability or liabilities of any nature
whatsoever arising out of or in any manner relating to any Pension Plan, Welfare Plan or Benefit
Plan (including but not limited to employee benefit plans such as foreign plans which are not
subject to ERISA), that has been, or is, contributed to by any entity, whether or not incorporated,
which is deemed to be under common control (as defined in Section 414 of the Code), with any such
Emerald Company (other than EWS with respect to its Gulf Coast Business) as of or prior to the
Closing.

     3.18 Conformity with Law. Except as set forth on Section 3.18 of the Emerald
Disclosure Schedule:

          (a) Each Emerald Company (other than EWS with respect to its Gulf Coast Business) has complied
in all material respects with, and no Emerald Company (other than EWS with respect to its Gulf
Coast Business) is in material default under, any ruling, directive, order, award, judgment or
decree of any Governmental or Regulatory Authority except where such failure would not be
reasonably expected to have a Material Adverse Effect on the Emerald Parties.

          (b) There are no Proceedings pending or, to the Knowledge of the Emerald Parties, threatened,
against or affecting any Emerald Company (other than EWS with respect to its Gulf Coast Business),
at law or in equity, or before or by any Governmental or Regulatory Authority and no notice of any
Proceeding, pending or, to the Knowledge of the Emerald Parties, threatened, has been received by
any Emerald Company (other than EWS with respect to its Gulf Coast Business) that would reasonably
be expected to have a Material Adverse Effect on such Emerald Company.

          (c) Since January 1, 2008, the Emerald Companies (other than EWS with respect to its Gulf
Coast Business) have conducted and are conducting their respective operations in material
compliance with the Law, and, to the Knowledge of the Emerald Parties, no Emerald Company (other
than EWS with respect to its Gulf Coast Business) has received any notification of any asserted
present or past unremedied failure by it to comply with any Law, in either case that would
reasonably be expected to have a Material Adverse Effect on such Emerald Company.

16

 

     3.19 Taxes.

          (a) Except as set forth on Section 3.19(a)-1 of the Emerald Disclosure Schedule, each Emerald
Party has timely filed all federal and other Tax Returns that it was required to file for all
Taxable periods in all jurisdictions in which each Emerald Party has established a Taxable presence
and has paid all Taxes (whether or not shown as due on a filed Tax Return). Each filed Tax Return
is true, complete and correct and each Emerald Party has made all deposits required with respect to
Taxes. Except as set forth on Section 3.19(a)-2 of the Disclosure Schedule, none of the Emerald
Parties has waived any statute of limitations in respect of Taxes or agreed to an extension of time
with respect to a Tax assessment or deficiency for any Taxable period. None of the Tax Returns for
any Emerald Party for any Taxable period is currently the subject of audit by a Taxing Authority.

          (b) None of the Emerald Companies is a party to any Tax allocation or sharing agreement or
similar contract or arrangement. Except as set forth on Section 3.19(b)-1 of the Emerald
Disclosure Schedule, none of the Emerald Parties has been a member of an affiliated group filing a
consolidated federal Tax Return for any Taxable period and, except as set forth on Section
3.19(b)-2 of the Emerald Disclosure Schedule, no Emerald Party has received written notice of any
claim, whether pending or threatened, for Taxes; there are no requests for rulings pending by any
Emerald Company with any Taxing Authority; no material penalty or deficiency in respect of any
Taxes that has been assessed against any Emerald Party remains unpaid.

          (c) (i) No Emerald Company is a subchapter S corporation within the meaning of Sections 1361
and 1362 of the Code, (ii) no Emerald Company is, or owns any equity interests in, any “qualified
subchapter S subsidiary” within the meaning of Sections 1361(b)(3)(B) and 1362 of the Code, and
(iii) each Emerald Company is a disregarded entity for U.S. federal income Tax purposes.

          (d) There are no Liens on any of the assets of any Emerald Party that arose in connection with
any failure (or alleged failure) to pay any Tax. Further, all of the assets of the Emerald Parties
have been properly listed and described on the property tax rolls for all periods prior to and
including the Closing Date, and no portion of the assets of the Emerald Parties constitute omitted
property for property tax purposes.

          (e) No claim has ever been made by a Taxing Authority in a jurisdiction where any Emerald
Party does not file Tax Returns that any Emerald Party is or may be subject to taxation by that
jurisdiction.

          (f) Each of the Emerald Parties has withheld and paid all Taxes required to have been withheld
and paid in connection with any amounts paid or owing to any employee, independent contractor,
creditor stockholder or other third party.

          (g) For the time period on or before January 6, 2008, to the Knowledge of the Emerald Parties,
and for the time period beginning after January 6, 2008, none of the Emerald Parties (i) has been a
stockholder of a “controlled foreign corporation” as defined in Section 957 of the Code (or any
similar provision of United States state, local or foreign law), (ii) has been a stockholder of a “passive foreign investment company” within the meaning of Section 1297 of

17

 

the Code; or (iii) has engaged in a trade or business, had a permanent establishment (within
the meaning of an applicable Tax treaty) or otherwise become subject to Tax jurisdiction in a
country other than the country of its formation.

          (h) Each Emerald Party has disclosed on its federal income Tax Returns all positions taken
therein that could give rise to a substantial understatement of federal income Tax within the
meaning of Code Section 6662.

          (i) Except as set forth on Section 3.19(i) of the Emerald Disclosure Schedule, no Emerald
Party will be required to include any item of income in, or exclude any item of deduction from,
Taxable income for any Taxable period (or portion thereof) ending after the Closing Date as a
result of any:

               (i) change in the method of accounting for a Taxable period ending on or prior to the Closing
Date;

               (ii) “closing agreement” as described in Code Section 7121 (or any corresponding or similar
provision of state, local or foreign income Tax law) executed on or prior to the Closing Date;

               (iii) Intercompany transaction or excess loss account described in Treasury Regulations under
Code Section 1502 (or any corresponding or similar provision of state, local or foreign Tax law);
or

               (iv) installment sale or open transaction disposition made on or prior to the Closing Date or
prepaid amount received on or prior to the Closing Date.

          (j) The unpaid Taxes of the Emerald Companies (i) did not, as of September 30, 2010, exceed
the reserve for Tax liability (rather than any reserve for deferred Taxes established to reflect
timing differences between book and Tax income) set forth on the face of the Interim Emerald
Financial Statements (rather than in any notes thereto) and (ii) do not exceed that reserve as
adjusted for the passage of time through the Closing Date in accordance with the past custom and
practice of Emerald Companies in filing their Tax Returns.

          (k) For the time period on or before January 6, 2008, to the Knowledge of the Emerald Parties,
and for the time period beginning after January 6, 2008, none of the Emerald Parties has any
liability for the Taxes of any other Person, other than another Emerald Party, under Treasury
Regulations Section 1.1502—6 (or any similar provision of United States state, local, or foreign
Law), as a result of being a member of a consolidated or combined group (other than a consolidated
or combined group the common parent of which is Waste Recyclers Holdings, LLC), as a transferee, by
contract, or otherwise.

          (l) For the time period on or before January 6, 2008, to the Knowledge of the Emerald Parties,
and for the time period beginning after January 6, 2008, none of the Emerald Companies has
constituted either a “distributing corporation” or a “controlled corporation” in a distribution of
stock qualifying for tax-free treatment under Section 355 of the Code (i) in the two years prior to
the Original Agreement Date, or (ii) in a distribution which could otherwise

18

 

constitute part of a “plan” or “series of related transactions” (within the meaning of Section
355(e) of the Code) that includes the transactions contemplated by this Agreement.

          (m) None of the Emerald Parties has been a party to a transaction that is or is substantially
similar to a “reportable transaction,” within the meaning of Treasury Regulations Section 1.6011
4(b), or any other transaction requiring disclosure under analogous provisions of United States,
state, local or foreign Tax law.

          (n) None of the Emerald Parties has engaged in any activity in a state of the United States or
political subdivision of a state of the United States (which activity creates a taxable nexus or
permanent establishment) where Tax Returns have not been filed. None of the Emerald Parties has
entered into any voluntary disclosure agreements with any Taxing Authority.

          (o) WCA Parent has been provided with true and complete copies of (i) all Tax Returns of the
Emerald Companies for all taxable periods ending after December 31, 2006, and (ii) all revenue
agents’ reports and other similar reports relating to any audit, examination or contest of the Tax
Returns of the Emerald Companies for all taxable periods ending after December 31, 2006.

     3.20 Completeness; No Defaults. EWS Holdings has made available to the WCA Parties
true, correct and complete copies of: (a) the operating agreements, as amended, and record and
minute books of each Emerald Company that is a limited liability company with respect to matters
occurring on or after January 1, 2008, (b) the certificates of incorporation and bylaws, as
amended, and record and minute books of each Emerald Company that is a corporation with respect to
matters occurring on or after January 1, 2008 and (c) each lease, instrument, agreement, license,
permit, certificate or other document that are included on Section 3.11, Section 3.12 and Section
3.13 of the Emerald Disclosure Schedule (collectively, the “Delivered Documents”). No Emerald
Party hereto is in material default under any of the Delivered Documents.

     3.21 Government Contracts. Except as set forth on Section 3.21 of the Emerald
Disclosure Schedule, no Emerald Company (other than EWS with respect to its Gulf Coast Business) is
now, and since January 1, 2008, has not been, a party to any governmental contract subject to price
redetermination or renegotiation.

     3.22 Absence of Changes. Except as set forth in Section 3.22 of the Emerald
Disclosure Schedule, since October 31, 2010 there has not been:

          (a) any event having a Material Adverse Effect on the financial condition, assets, liabilities
(contingent or otherwise), income or business of any Emerald Company (other than EWS with respect
to its Gulf Coast Business);

          (b) any damage, destruction or loss (whether or not covered by insurance), change in zoning,
or change in any law, rule, regulation, ordinance, or permit condition, materially adversely
affecting the properties or business of any Emerald Company (other than EWS with respect to its
Gulf Coast Business) with a value in excess of $50,000;

19

 

          (c) any change in the authorized or outstanding capital stock or limited liability company
interests, as applicable, of any Emerald Company or any grant of any options, warrants, calls,
conversion rights or commitments;

          (d) any declaration or payment of any dividend or distribution in respect of the capital stock
or limited liability company interests, as applicable, or any direct or indirect redemption,
purchase or other acquisition of any of the capital stock or limited liability company interests,
as applicable, of any Emerald Company;

          (e) any bonus or increase in the compensation, sales commissions, fringe benefits or fee
arrangements payable or that have become payable by any Emerald Company (other than EWS with
respect to its Gulf Coast Business) to any of its officers, directors, employees, consultants or
agents or any change in the method by which sales commissions are calculated and paid;

          (f) any work interruptions, labor grievances or claims filed or, to the Knowledge of the
Emerald Parties, any proposed law or regulation or any event or condition of any character, that
could reasonably be expected to have a Material Adverse Effect on the business or future prospects
of the Emerald Companies (other than EWS with respect to its Gulf Coast Business);

          (g) any sale or transfer, or any agreement to sell or transfer, other than in the ordinary
course of business, any assets, property or rights of any Emerald Company (other than EWS with
respect to its Gulf Coast Business) to any Person;

          (h) any cancellation, or agreement to cancel, any indebtedness or other obligation owing to
any Emerald Company (other than EWS with respect to its Gulf Coast Business) outside of the
ordinary course of business consistent with past practices;

          (i) any plan, agreement or arrangement granting any preferential rights to purchase or acquire
any interest in the assets, property or rights of any Emerald Company (other than EWS with respect
to its Gulf Coast Business) or requiring consent of any party to the transfer and assignment of any
such assets, property or rights;

          (j) any purchase or acquisition, or agreement, plan or arrangement to purchase or acquire, any
property, rights or assets of any Emerald Company (other than EWS with respect to its Gulf Coast
Business);

          (k) any waiver of any material rights or claims of any Emerald Company (other than EWS with
respect to its Gulf Coast Business);

          (l) any breach, amendment, termination, notice of non-renewal or material changes in the terms
and conditions of any material contract, agreement, license, permit or other right to which any Emerald Company (other than EWS with respect to its Gulf Coast Business) is
a party that would reasonably be expected to have a Material Adverse Effect on any Emerald Company;

20

 

          (m) any transaction by any Emerald Company (other than EWS with respect to its Gulf Coast
Business) outside the ordinary course of its business;

          (n) any written notice of any claim, whether threatened or pending, for any material Taxes or
notice of any material penalty or deficiency in respect of any Taxes that has been assessed against
any Emerald Party and no other event has occurred that would be reasonably be expected to cause a
material increase in the Tax reserves or effective Tax rate of any Emerald Company; or

          (o) any amendment to any Tax Returns, or any election made, any accounting method or fiscal
year adopted, or any position taken in any Tax Returns relating to any of the Emerald Parties that
is inconsistent with any such election, accounting method, fiscal year or position previously made,
adopted or taken with respect to any Emerald Party.

     3.23 Deposit Accounts; Powers of Attorney; Escheatment.

          (a) Set forth on Section 3.23(a) of the Emerald Disclosure Schedule is a list, as of the
Original Agreement Date, of: (i) the name of each financial institution in which each such Emerald
Company (other than EWS with respect to its Gulf Coast Business) has accounts or safe deposit
boxes; (ii) the names in which such accounts or boxes are held; and (iii) the type of accounts.

          (b) No Person holds a general or special power of attorney from any Emerald Company (other
than EWS with respect to its Gulf Coast Business).

          (c) Set forth on Section 3.23(c) of the Emerald Disclosure Schedule is a list of all financial
assurance instruments issued by or on behalf of each Emerald Company (other than EWS with respect
to its Gulf Coast Business), including the names of the surety, the obligee and the obligor for
each such instrument, the penal sum for each such instrument, the purpose of such instrument, and
the termination or renewal date of each such instrument.

          (d) To the Knowledge of the Emerald Parties, there is no property or obligation of the Emerald
Parties, including uncashed checks to vendors, customers or employees, non-refunded overpayments or
credits, that is escheatable or payable to any state or municipality under any applicable
escheatment or unclaimed property Laws or that may at any time become escheatable to any state or
municipality under any such Laws.

     3.24 Proprietary Rights. Except as set forth on Section 3.24 of the Emerald
Disclosure Schedule, no Emerald Company (other than EWS with respect to its Gulf Coast Business)
owns or has any right or interest in any registered trademarks, trade names, patents, patent
applications or registered copyrights (“Intellectual Property”) or any license or assignment with respect thereto. No
Emerald Company (other than EWS with respect to its Gulf Coast Business) has granted to any third
party a License or other authorization to use any Intellectual Property of such Emerald Company
(except to any other one or more of the Emerald Companies) and no third party owns any ownership
interest in or holds any Lien on any Emerald Company’s Intellectual Property (other than with
respect to EWS’ Gulf Coast Business). No Emerald Party has received any notification that any
Emerald Company (other than EWS with respect to its Gulf Coast Business) has infringed upon or is
infringing upon, or has engaged in or

21

 

is engaging in any unauthorized use or misappropriation of,
any Intellectual Property owned by or belonging to any other Person that would reasonably be
expected to have a Material Adverse Effect on such Emerald Company; and there is no pending or, to
the Knowledge of the Emerald Parties, threatened claim, and no basis for the assertion of any valid
claim, against any Emerald Company (other than EWS with respect to its Gulf Coast Business) with
respect to any such infringement, unauthorized use or misappropriation. Except for software used
in connection with the operation of the Emerald Companies, no Emerald Company (other than EWS with
respect to its Gulf Coast Business) has entered into any licensing agreements to use the
Intellectual Property of third parties, and no Emerald Company (other than EWS with respect to its
Gulf Coast Business) owes to any third parties royalties for the use of Intellectual Property.

     3.25 Relations with Governments. Since January 1, 2008, no Emerald Company (other
than EWS with respect to its Gulf Coast Business) nor to the Knowledge of the Emerald Parties, any
shareholder, member, manager, director, officer, agent, employee or other person acting on behalf
of any Emerald Company, has used any funds of any Emerald Company (other than EWS with respect to
its Gulf Coast Business) for improper or unlawful contributions, payments, gifts or entertainment,
or made any improper or unlawful expenditures relating to political activity to domestic or foreign
government officials or others. Each Emerald Company (other than EWS with respect to its Gulf
Coast Business) has adequate financial controls to prevent such improper or unlawful contributions,
payments, gifts, entertainment or expenditures. To the Knowledge of the Emerald Parties, no
Emerald Company (other than EWS with respect to its Gulf Coast Business) or any partner,
shareholder, member, manager, director, officer, agent, employee or other person acting on behalf
of such Emerald Company, has accepted or received any improper or unlawful contributions, payments,
gifts or expenditures. To the Knowledge of the Emerald Parties, the Emerald Companies (other than
EWS with respect to its Gulf Coast Business) have at all times complied, and are in compliance, in
all material respects, with the Foreign Corrupt Practices Act and in all material respects with all
foreign laws and regulations relating to prevention of corrupt practices.

     3.26 Environmental Matters. The Emerald Companies and the Emerald Parties have made
available to the WCA Parties all of the material correspondence, agreements, notices or other
documents related to the items set forth on Section 3.26 of the Emerald Disclosure Schedule.

     Except as set forth in Section 3.26 of the Emerald Disclosure Schedule:

          (a) the Emerald Companies and all property (whether real or personal) which is or was formerly
leased, used, operated, owned or managed in whole or in part in any manner by any Emerald Company
or any of its organizational predecessors (individually, any “Business Facility”, and collectively,
the “Business Facilities”) and all operations of the Emerald Companies and their respective
Business Facilities, are in material compliance and to the Knowledge of Emerald Company have been
in material compliance with all applicable Environmental Laws;

          (b) each Emerald Company and its Business Facilities has obtained and is in material
compliance with all material permits, Licenses, registrations, approvals and other authorizations
(including all applications for all of the foregoing) required under any

22

 

Environmental Law for the
business of such Emerald Company as currently conducted (collectively, “Environmental Permits”),
and Section 3.26(b) of the Emerald Disclosure Schedule contains an accurate and complete listing of
all of the Business Facilities and all of the material Environmental Permits of each Emerald
Company;

          (c) there is no present, or to the Knowledge of the Emerald Parties, past event, condition or
circumstance that may reasonably be expected to interfere with the conduct of any Emerald Company’s
business in the manner now conducted relating to such Emerald Company’s compliance with
Environmental Laws or which constitutes a material violation thereof, or which could reasonably be
expected to have a Material Adverse Effect upon the Emerald Parties;

          (d) during the term of each Emerald Company’s ownership of or control of its Business
Facilities (the “Ownership Term”), each Emerald Company and its respective Business Facilities, and
any operations thereon, have not been and are not currently subject to an Environmental Claim;

          (e) there are no Environmental Claims or investigations pending or, to the Knowledge of the
Emerald Parties, threatened, involving the release or threat of release of any Polluting Substances
from or on (i) any Business Facility of any Emerald Company, or (ii) any other property where
Polluting Substances generated by any Emerald Company or originating from any Business Facility of
any Emerald Company have been recycled, stored, treated, released or disposed, or (iii) any
property to which Polluting Substances were transported by any Emerald Company or (iv) any property
on which any Emerald Company performs or performed Remediation;

          (f) there are no Polluting Substances on any Business Facility of any Emerald Company in an
amount or concentration which would require: (i) reporting to any governmental authority under
release reporting, emergency planning, or similar requirements of Environmental Laws and which have
not been so reported; or (ii) Remediation to comply with the requirements of Environmental Laws;

          (g) no Emerald Company has undertaken Remediation of any facility or site or entered into any
agreement or extended any offer for the payment of costs associated with such activity;

          (h) each Emerald Company has filed all material notices, notifications, financial assurance,
applications and all similar documents which are required to be obtained or filed for the operation
of its business or the use or operation of any of its Business Facilities and has not received any
notification that such filings are incomplete or insufficient;

          (i) there are no Environmental Claims covered by any of the Emerald Companies’ insurance
policies for which any Emerald Company has failed to notify its insurers within contractually
required notice periods or for which insurers have denied coverage or reserved their rights to deny
coverage;

          (j) The Emerald Company has not knowingly made false or misleading statements in any current
or prior Environmental Permit or application for an Environmental

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Permit, including those currently
pending, relating to any Emerald Company or any of its Business Facilities;

          (k) the transactions contemplated by this Agreement will not require the amendment or transfer
of any of the Environmental Permits;

          (l) no Emerald Company is now, and to the Knowledge of the Emerald Parties, no Emerald Company
is reasonably expected to be in the future (based solely upon the Environmental Laws as they exist
on the Closing Date), as a result of the operation or condition of any Business Facility of any
Emerald Company or the businesses thereon as conducted since January 1, 2007 or at Closing, subject
to any material: (i) contingent liability in connection with any Release or threatened Release into
the environment other than the normal or routine disposal of solid waste, whether on or off the
Properties or any Business Facility of any Emerald Company; (ii) Remediation requirements under
Environmental Laws, or any reporting requirements related thereto, except for ordinary closure
requirements under Environmental Laws; or (iii) consent order, compliance order or administrative
order relating to or issued under any Environmental Law;

          (m) there are no obligations, undertakings or liabilities arising out of or relating to
Environmental Laws which any Emerald Company has agreed to, assumed or retained, by contract or
otherwise, except as required by Environmental Law or referenced in the Environmental Permits; and

          (n) all storage tanks on or under any Business Facility of any Emerald Company, have been
maintained and remediated in material compliance with all Environmental Laws.

     3.27 No Broker’s or Finder’s Fees. Except for Livingstone Partners LLC, no agent,
broker, investment banker, person or firm has acted directly or indirectly on behalf of the Emerald
Parties or any Emerald Company in connection with this Agreement or the transactions contemplated
herein who will be entitled to any broker’s or finder’s fee or any other commission or similar fee
or expense, directly or indirectly, in connection with this Agreement or the transactions
contemplated herein.

     3.28 Litigation. There are no Proceedings pending or, to the Knowledge of the Emerald Parties, threatened
against any Emerald Company (other than EWS with respect to its Gulf Coast Business), or
challenging the validity or propriety of the transactions contemplated by this Agreement or any
Environmental Permit or other permit or governmental authorization; to the Knowledge of the Emerald
Parties, there is no basis or ground for any such Proceedings; and there is no outstanding order,
writ, injunction or decree of any court, administrative agency, governmental body or arbitration
tribunal against any Emerald Party (other than EWS with respect to its Gulf Coast Business) or its
assets, which relates to or would reasonably be expected to have a Material Adverse Effect on such
Emerald Company. Set forth on Section 3.28 of the Emerald Disclosure Schedule are all Proceedings
known to the Emerald Parties (other than EWS with respect to its Gulf Coast Business) to have
commenced since January 1, 2008 to which any Emerald Company (other than EWS with respect to its
Gulf Coast Business) was a party, or which, to the Knowledge of the Emerald Parties, were
threatened against any Emerald Company

24

 

(other than EWS with respect to its Gulf Coast Business), or
which relate in any manner to the assets of any Emerald Company
(other than EWS with respect to its Gulf Coast Business).

ARTICLE IV

4. Representations and Warranties of the WCA Parties. Prior to or upon the execution of this
Agreement, the WCA Parties have delivered to EWS Holdings a schedule (the “WCA Parties’ Disclosure
Schedule”) setting forth, among other things, items the disclosure of which is necessary or
appropriate either in response to an express disclosure requirement contained in any provision
hereof or as an exception to one or more representations or warranties contained in Article
4. The inclusion of any information in the WCA Disclosure Schedule shall not be deemed to be
an admission or acknowledgment, in and of itself, that such information is required by the terms
hereof to be disclosed, is material to the WCA Parties, has resulted in or would result in a
Material Adverse Effect, or is outside the ordinary course of business.

     The WCA Parties make the following representations and warranties jointly and severally, and
represent and warrant that all of the following representations and warranties are true as of the
Original Agreement Date:

     4.1 Organization; Standing and Power. The WCA Parties are corporations duly
organized, validly existing and in good standing under the laws of the State of Delaware and have
all requisite power and authority to own, operate and lease its properties and to carry on its
business in the places and in the manner as now being conducted.

     4.2 Capitalization.

          (a) As of the Original Agreement Date, the authorized capital stock of WCA Parent consists of
50,000,000 shares common stock and 8,000,000 shares of preferred stock. No other capital stock is
authorized. As of the Original Agreement Date, there were 20,610,832
shares of WCA Parent Common Stock and 913,802 shares of WCA Parent preferred stock
outstanding, and 1,073,957 shares of WCA Parent Common Stock and no shares of WCA Parent preferred
stock were held in WCA Parent’s treasury. As of the Original Agreement Date, 10,173,640 shares of
WCA Parent Common Stock were reserved for issuance upon the conversion of WCA Parent preferred
stock and the exercise of long-term stock awards, stock options and other equity-type rewards
pursuant to the Fourth Amended and Restated 2004 WCA Waste Corporation Incentive Plan (the “WCA
Parent Stock Plan”) and 2,000,000 shares of WCA Parent Common Stock (the “Live Earth Earn-Out
Shares”) reserved for issuance pursuant to the earn-out provisions set forth in the Equity Interest
and Asset Purchase Agreement dated December 9, 2009 by and between WCA Parent, Live Earth LLC and
certain other parties (the “Live Earth Agreement”). All of the issued and outstanding shares of
WCA Parent Common Stock and preferred stock have been duly authorized and validly issued and are
fully paid, nonassessable and free of preemptive rights, with no personal liability attaching to
the ownership thereof. Except for the equity awards issuable pursuant to WCA Parent Stock Plan,
the Live Earth Earn-Out Shares and WCA Parent Common Stock issuable upon conversion of WCA Parent
preferred stock, WCA Parent does not have and is not bound by any outstanding subscriptions,
options, warrants, calls, commitments or agreements of any character calling for the purchase or
issuance of any shares of WCA Parent Common Stock or any other equity

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securities of WCA Parent or any securities representing the right to purchase or otherwise receive any shares of WCA Parent
Common Stock or preferred stock.

          (b) Section 4.2(b) of the WCA Parties’ Disclosure Schedule attached hereto sets forth a true
and correct list of all of WCA Parent’s Subsidiaries as of the Original Agreement Date. WCA parent
owns, directly or indirectly, all of the issued and outstanding shares of capital stock of each of
the subsidiaries of WCA Parent, free and clear of all Liens other than Permitted Liens, and all of
such shares are duly authorized and validly issued and are fully paid, nonassessable and free of
preemptive rights. No Subsidiary of WCA Parent has or is bound by any outstanding subscriptions,
options, warrants, calls, commitments or agreements of any character calling for the purchase or
issuance of any shares of capital stock or any other equity security of such subsidiary or any
securities representing the right to purchase or otherwise receive any shares of capital stock or
any other equity security of such subsidiary.

     4.3 Authorization, Validity and Effect of Agreements; Non-contravention. The
execution and delivery of this Agreement by each WCA Party and the performance of the transactions
contemplated herein by each WCA Party have been duly and validly authorized by each WCA Party.
This Agreement constitutes, and all Transaction Documents when executed and delivered pursuant
hereto for value received will constitute, the valid and legally binding obligations of the WCA
Parties to this Agreement and each of the Transaction Documents to which such WCA Parties are
parties enforceable in accordance with their terms, subject to (i) applicable bankruptcy,
insolvency or other similar laws relating to creditor’s rights generally and (ii) general
principles of equity, regardless of whether considered in a proceeding in equity or at law. The
execution and delivery of this Agreement by the WCA Parties and each of the other Transaction
Documents to which such WCA Parties are parties does not, and the consummation of the transactions
contemplated hereby by the WCA Parties will not except as set forth on Section 4.3 of the WCA
Parties’ Disclosure Schedule, (i) require the consent, approval or authorization of, or
declaration, filing or registration with, any governmental or regulatory
authority or any third party; (ii) result in the breach of any term or provision of, or
constitute a default under, or result in the acceleration of or entitle any party to accelerate,
terminate or modify (whether after the giving of notice or the lapse of time or both) any
obligation under, or result in the creation or imposition of any Lien upon any part of the property
of the WCA Parties pursuant to any provision of any order, judgment, arbitration award, injunction,
decree, indenture, mortgage, lease, license, lien, or other agreement or instrument to which any
WCA Party is a party or by which it is bound; or (iii) violate or conflict with any provision of
the respective Certificates of Incorporation or Bylaws, each as amended to the Original Agreement
Date and as applicable, of the WCA Parties.

     4.4 SEC Reports; Financial Statements.

          (a) Since January 1, 2008, WCA Parent has filed all reports, schedules, forms, statements and
other documents required to be filed by WCA Parent under, and in accordance with the requirements
of, each of the Securities Act of 1933, as amended (the “Securities Act”), and the Exchange Act, as
the case may be, and the rules and regulations thereunder (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein, being collectively referred to
herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of
filing and has filed any such SEC Reports prior to the

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expiration of any such extension. Except to the extent corrected by subsequent SEC Reports or amendments to a prior SEC Report, as of their
respective dates, the SEC Reports complied in all material respects with the requirements of the
Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, at the time when
filed, contained any untrue statement of a material fact or omitted to state a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading. The certifications of the SEC
Reports by the chief executive officer and the chief financial officer are each true and correct.
No subsidiary of WCA Parent is or has been required to file any form report, registration statement
or other document with the SEC.

          (b) The financial statements and notes contained or incorporated by reference in the SEC
Reports of WCA Parent comply in all material respects with applicable accounting requirements and
the rules and regulations of the SEC with respect thereto as in effect at the time of filing. Such
financial statements (i) have been prepared in accordance with GAAP and Regulation S-X of the SEC,
subject, in the case of interim financial statements, to normal recurring year-end adjustments (the
effect of which are not expected to be, individually or in the aggregate, materially adverse) and
the omission of notes to the extent permitted by Regulation S-X of the SEC and (ii) fairly present
in all material respects the financial position of WCA Parent and its Subsidiaries as of and for
the dates thereof and the results of operations, changes in stockholders’ equity, and cash flows
for the periods then ended. The financial statements referred to in this Section 4.4(b)
reflect the consistent application of such accounting principles throughout the periods involved,
except as disclosed in the notes to such financial statements. No financial statements of any
Person other than WCA Parent and its Subsidiaries are required by GAAP to be included in the
consolidated financial statements of WCA Parent.

          (c) WCA Parent and its Subsidiaries maintain disclosure controls and procedures required by
Rule 13a-15 or 15d-15 under the Exchange Act. Such disclosure controls and procedures are
reasonably designed to ensure that information required to be disclosed by WCA Parent is recorded
and reported on a timely basis to the individuals responsible for the preparation of WCA Parent’s
filings with the SEC and other public disclosure documents. WCA Parent and its Subsidiaries
maintain internal control over financial reporting (as defined in Rule 13a-15 or 15d-15, as
applicable, under the Exchange Act). WCA Parent has completed an evaluation of the effectiveness
of its internal control over financial reporting in compliance with Section 404 of the Sarbanes
Oxley Act for the year ended December 31, 2009, and such evaluation concluded that such controls
were effective. WCA Parent has disclosed and identified, based on the most recent evaluation of
its chief executive officer and its chief financial officer prior to the Original Agreement Date,
for WCA Parent’s auditors and the audit committee of WCA Parent’s board of directors (i) any
significant deficiencies in the design or operation of its internal controls over financial
reporting that are reasonably likely to adversely affect WCA Parent’s ability to record, process,
summarize and report financial information, (ii) any material weaknesses in internal control over
financial reporting and (iii) any fraud, whether or not material, that involves management or other
employees who have a significant role in WCA Parent’s or its subsidiaries’ internal control over
financial reporting.

          (d) Since the date of the latest unaudited financial statements included within the SEC
Reports, there has been no event, occurrence or development that has had or that could reasonably
be expected to result in a Material Adverse Effect with respect to WCA Parent. Since

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September 30, 2010, each WCA Party (i) has been operated in all material respects in the ordinary course of
business and (ii) has not made any material changes in its respective capital or corporate
structures.

          (e) WCA Parent is in compliance with the applicable listing rules of NASDAQ and has not
received any notice from NASDAQ asserting any non-compliance with such rules. To the Knowledge of
the WCA Parties, each director and executive officer of WCA Parent has filed with the SEC on a
timely basis all statements required by Section 16(a) of the Exchange Act and the rules and
regulations thereunder.

     4.5 Litigation. Except as set forth in the SEC Reports, there are no Proceedings
pending or, to the Knowledge of the WCA Parties, threatened against any WCA Parent or any of its
Subsidiaries, or challenging the validity or propriety of the transactions contemplated by this
Agreement; to the Knowledge of the WCA Parties and the Emerald Parties, there is no basis or ground
for any such Proceedings; and there is no outstanding order, writ, injunction or decree of any
court, administrative agency, governmental body or arbitration tribunal against WCA Parent or any
of its Subsidiaries or their respective assets, which relates to or would reasonably be expected to
have a Material Adverse Effect on WCA Parent or any of its Subsidiaries.

     4.6 Insurance. WCA Parent and its Subsidiaries are presently insured, and since
January 1, 2008, have been insured, for reasonable amounts with financially sound and reputable
insurance companies, against such risks as companies engaged in a similar business would, in accordance with good
business practice, customarily be insured. Except as would not reasonably be expected to have a
Material Adverse Effect on WCA Parent, all of the insurance policies and bonds maintained by WCA
Parent and its Subsidiaries is in full force and effect, neither WCA Parent nor any of its
Subsidiaries are in material default thereunder and all material claims thereunder have been filed
in due and timely fashion.

     4.7 Conformity with Law.

          (a) WCA Parent and each of its Subsidiaries has complied in all material respects with, and
neither WCA Parent nor any of its Subsidiaries is in material default under, any ruling, directive,
order, award, judgment or decree of any Governmental or Regulatory Authority except where such
failure would not be reasonably expected to have a Material Adverse Effect on WCA Parent or any of
its Subsidiaries.

          (b) Except as set forth in the SEC Reports, there are no Proceedings pending or, to the
Knowledge of the WCA Parties, threatened against or affecting WCA Parent or any of its
Subsidiaries, at law or in equity, or before or by any Governmental or Regulatory Authority and no
notice of any Proceeding, pending or, to the Knowledge of the WCA Parties, threatened, has been
received by WCA Parent or any of its Subsidiaries that would reasonably be expected to have a
Material Adverse Effect on WCA Parent or any of its Subsidiaries.

          (c) Except as set forth in the SEC Reports, WCA Parent and its Subsidiaries have conducted and
are conducting their respective operations in material compliance with the Law, and to the
Knowledge of the WCA Parties, neither WCA Parent nor any of its Subsidiaries has received any
notification of any asserted present or past unremedied failure by it to comply

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with any Law that would reasonably be expected to have a Material Adverse Effect on WCA Parent or any of its
Subsidiaries.

     4.8 Relations with Governments. No WCA Party nor to the Knowledge of the WCA Parties,
any shareholder, member, manager, director, officer, agent, employee or other person acting on
behalf of any WCA Party, has used any funds of any WCA Party for improper or unlawful
contributions, payments, gifts or entertainment, or made any improper or unlawful expenditures
relating to political activity to domestic or foreign government officials or others. Each WCA
Party has adequate financial controls to prevent such improper or unlawful contributions, payments,
gifts, entertainment or expenditures. To the Knowledge of the WCA Parties, no WCA Party, partner,
shareholder, member, manager, director, officer, agent, employee or other person acting on behalf
of any WCA Party, has accepted or received any improper or unlawful contributions, payments, gifts
or expenditures. To the Knowledge of the WCA Parties, the WCA Parties have at all times complied,
and are in compliance, in all material respects, with the Foreign Corrupt Practices Act and in all
material respects with all foreign laws and regulations relating to prevention of corrupt
practices.

     4.9 Contracts and Commitments.

          (a) Except for this Agreement, neither WCA Parent nor any of its Subsidiaries is a party to or
bound by any contract, arrangement, commitment or understanding (whether written or oral) which (i)
is a material contract (as defined in Item 601(b)(10) of Regulation S-K of the SEC) to be performed
after the Original Agreement Date that has not been filed or incorporated by reference in the SEC
Reports or (ii) which materially restricts the conduct of any line of business by WCA Parent or any
of its Subsidiaries. Each contract, arrangement, commitment or understanding of the type described
in this Section 4.9 is referred to herein as a “WCA Contract.”

          (b) Each WCA Contract is a valid and binding obligation of WCA Parent or such of its
Subsidiaries that is a party thereto and, to the Knowledge of the WCA Parties, of each other party
thereto, is in full force and effect, except where such failure to be in full force and effect
would not have or be reasonably likely to have a Material Adverse Effect on WCA Parent or such of
its applicable Subsidiaries. WCA Parent and each of its Subsidiaries have performed all
obligations required to be performed by them to date under each WCA Contract to which WCA Parent or
such of its Subsidiaries is a party thereto, except where such nonperformance, individually or in
the aggregate, would not have or be reasonably likely to have a Material Adverse Effect. No event
or condition exists which constitutes or, after notice or lapse of time or both, would constitute,
a material default on the part of WCA Parent or any of its Subsidiaries to any such WCA Contract,
except where such default, individually or in the aggregate, would not have or be reasonably likely
to have a Material Adverse Effect. To the Knowledge of the WCA Parties, no other party to any WCA
Contract is in default under the terms of any WCA Contract, except where such default, individually
or in the aggregate, would not have or be reasonably likely to have a Material Adverse Effect.

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     4.10 Absence of Certain Changes or Events.

          (a) Except as disclosed in the SEC Reports filed prior to the Original Agreement Date, since
September 30, 2010, no event has occurred which has caused, or is reasonably likely to cause,
individually or in the aggregate, a Material Adverse Effect on WCA Parent or any of its
Subsidiaries.

          (b) Since September 30, 2010:

               (i) WCA Parent and each of its Subsidiaries has been operated in all material respects in the
ordinary course of business;

               (ii) neither WCA Parent nor any of its Subsidiaries has made any material changes in its
respective capital or corporate structures;

               (iii) no Person (including the WCA Parties) has accelerated, terminated, modified or cancelled
any material contract, agreement or other instrument or arrangements by which WCA Parent or any of
its Subsidiaries is bound or affected or to which WCA Parent or any of its Subsidiaries is a party;

               (iv) neither WCA Parent nor any of its Subsidiaries has permitted any material Lien or claim
against WCA Parent’s or any of its Subsidiaries’ assets outside the ordinary course of business and
no event has occurred which would reasonably be expected to result in a material impairment to any
significant asset of WCA Parent or any of its Subsidiaries;

               (v) neither WCA Parent nor any of its Subsidiaries has made any material investment in or loan
to any other Person or incurred any material indebtedness to any other Person;

               (vi) there are no Environmental Claims or investigations pending, or to the Knowledge of the
WCA Parties, threatened, against WCA Parent or any of its Subsidiaries that would reasonably be
expected to be disclosed in any report filed by WCA Parent pursuant to the Exchange Act;

               (vii) neither WCA Parent nor any of its Subsidiaries has received any written notice or, to
the Knowledge of the WCA Parties, oral notice of any claim, whether threatened or pending, for any
material Taxes or notice of any material penalty or deficiency in respect of any Taxes that has
been assessed against WCA Parent or any of its Subsidiaries and no other event has occurred that
would be reasonably be expected to cause a material increase in the Tax reserves or effective Tax
rate of WCA Parent or any of its Subsidiaries; and

               (viii) each WCA employee benefit plan (as the term is defined in Section 3(3) of ERISA, and
other arrangements or agreement providing benefits to any employee or former employee of WCA
Parent, its Subsidiaries or any ERISA Affiliate (collectively, the “WCA Plans”) has been operated
and administered in all material respects in accordance with its terms and applicable law, neither
WCA Parent nor any of its Subsidiaries has received notice of any material claims, whether
threatened or pending (other than routine claims for benefits) by, on behalf of or against any WCA
Plans or trusts related thereto and no other event has occurred that

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would reasonably be expected to cause WCA Parent or any of its Subsidiaries to record a material liability or impairment to the
value of any assets held with respect to the WCA Plans.

     4.11 Required Vote. No vote of the stockholders of WCA Parent is required by law, WCA
Parent’s certificate of incorporation or bylaws or otherwise to approve this Agreement and the
transactions contemplated hereby.

     4.12 Financial Capability; Solvency. As of the Closing, WCA Parent will have
sufficient funds to deliver the Cash Purchase Price as and when due, and to consummate the
transactions contemplated by this Agreement. Upon the Closing, WCA Parent and its Subsidiaries
will not be insolvent as defined in Section 101 of Title 11 of the United States Code.

     4.13 Valid Issuance of the Securities. The Closing Shares, when issued, sold and
delivered in accordance with the terms of this Agreement, as applicable, will be duly authorized,
validly issued, fully paid and nonassessable, and will be free of restrictions on transfer and pre-emptive rights other than
restrictions on transfer under this Agreement and under applicable state and federal securities
laws.

     4.14 Offering. The offer, sale and issuance of the Closing Shares as contemplated by
this Agreement is exempt from the registration or qualification requirements of the Securities Act,
and any applicable state securities laws, and neither WCA Parent nor any authorized agent acting on
its behalf will take any action hereafter that would cause the loss of such exemption.

     4.15 Purchase for Investment. Each of the WCA Parties is acquiring the Equity
Interests for investment and not with a view to distributing all or any part thereof in any
transaction which would constitute a “distribution” within the meaning of the Securities Act. Each
of the WCA Parties acknowledges that none of the Equity Interests has been registered under the
Securities Act and none of the Emerald Parties is under any obligation to file a registration
statement or similar filing with the SEC or any state agency with respect to the Equity Interests.

     4.16 Investor Qualifications. Each of the WCA Parties (a) has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks
of its investment in the Equity Interests; (b) is able to bear the complete loss of its investment
in the Equity Interests; (c) has had the opportunity to ask questions of the Emerald Parties and
the management of each of the Emerald Companies concerning the terms and conditions of the Equity
Interests and the Acquired Businesses; (d) has had the opportunity to obtain additional information
about the Emerald Companies and the Acquired Businesses and all of such WCA Party’s questions have
been answered to their satisfaction; and (e) is otherwise an “accredited investor” as such term is
defined in Rule 501 promulgated under the Securities Act.

     4.17 No Broker’s or Finder’s Fees. No agent, broker, investment banker, person or
firm has acted directly or indirectly on behalf of the WCA Parties in connection with this
Agreement or the transactions contemplated herein who will be entitled to any broker’s or finder’s
fee or any other commission or similar fee or expense, directly or indirectly, in connection with
this Agreement or the transactions contemplated herein.

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ARTICLE V

5. Covenants of Both Parties.

     5.1 Emerald Tax Covenants.

          (a) For purposes of the Taxable year in which the transaction contemplated by this Agreement
shall close, the Emerald Parties, at the Emerald Parties’ sole cost and expense, shall prepare or
cause to be prepared and file or cause to be filed all Tax Returns for the Emerald Companies for
all periods ending on or prior to the Closing Date (after giving effect to any valid extension of
time to file). Prior to the filing of any such Tax Return, the Emerald Parties shall provide WCA
Parent with a substantially final draft of such Tax Return at least fifteen (15) Business Days
prior to the due date for such Tax Return and shall accept all reasonable comments from WCA Parent.
The Emerald Companies shall promptly upon filing provide WCA Parent with filed copies of all such
Tax Returns. The Emerald Parties shall timely pay to the appropriate Taxing Authority all Taxes
(including estimated Taxes) shown due on such Tax Returns.

          (b) WCA Parent shall prepare or cause to be prepared and file or cause to be filed any Tax
Returns of any of the Emerald Companies for Tax periods which begin before the Closing Date and end
after the Closing Date. Prior to the filing of any such Tax Return, WCA Parent shall provide EWS
Holdings with a substantially final draft of such Tax Return at least ten (10) Business Days prior
to the due date for such Tax Return (after taking into account any extensions to such due date) and
shall accept all reasonable comments from EWS Holdings. EWS Holdings shall pay by cash, check or
wire transfer to WCA Parent, within five (5) days before the date on which Taxes are to be paid
with respect to such periods, an amount equal to the portion of such Taxes which relates to the
portion of such Tax period ending on the Closing Date. For purposes of this Section 5.1,
in the case of any Taxes that are imposed on a periodic basis and are payable for a Tax period that
includes (but does not end on) the Closing Date, the portion of such Tax which relates to the
portion of such Tax period ending on the Closing Date shall (x) in the case of any Taxes other than
Taxes based upon or related to income, gains or receipts, or employment or payroll Taxes, be deemed
to be the amount of such Tax for the entire Tax period multiplied by a fraction the numerator of
which is the number of days in the Tax period ending on the Closing Date and the denominator of
which is the number of days in the entire Tax period, and (y) in the case of any Tax based upon or
related to income, gains or receipts, or employment or payroll Taxes, be deemed equal to the amount
which would be payable if the relevant Tax period ended on the Closing Date. All determinations
necessary to give effect to the foregoing allocations shall be made in a manner consistent with
past practice of the Emerald Companies to the extent in compliance with applicable Law.

          (c) The Parties agree to:

               (i) cooperate fully, as and to the extent reasonably requested by the other Party, in
connection with the filing of Tax Returns pursuant to this Agreement and any audit, litigation or
other proceeding with respect to Taxes. Such cooperation shall include the
retention and (upon the other Party’s request) the provision of records and information that
are reasonably relevant to any such audit, litigation or other proceeding and making employees

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available on a mutually convenient basis to provide additional information and explanation of any
material provided hereunder. The Parties agree (A) to retain all books and records with respect to
Tax matters pertinent to each of the Emerald Companies relating to any Taxable period beginning
before the Closing until the expiration of the statute of limitations (unless, prior to such
expiration, the WCA Parties deliver a written notice to EWS Holdings requesting that such books and
records be retained and specifying the additional retention period) of the respective Taxable
periods and to abide by all record retention agreements entered into with any Taxing Authority, and
(B) to give the other Party reasonable written notice prior to transferring, destroying or
discarding any such books and records and, if the other Party so requests, the WCA Parties or the
Emerald Parties, as the case may be, shall allow the other Party to take possession of such books
and records.

          (ii) use their best efforts to obtain any certificate or other document from any Governmental
or Regulatory Authority or any other Person as may be necessary to mitigate, reduce or eliminate
any Tax that could be imposed (including, but not limited to, with respect to the transactions
contemplated hereby).

     (d) Without the prior written consent of WCA Parent, after the execution of this Agreement and
prior to the Closing none of the Emerald Parties shall amend any Tax Returns, or make any election,
adopt any accounting method or fiscal year, or take any position in any Tax Returns relating to any
of the Emerald Parties that is inconsistent with any such election, accounting method, fiscal year
or position previously made, adopted or taken with respect to any Emerald Party.

     (e) All sales and transfer taxes, deed taxes, conveyance fees, recording charges and similar
taxes imposed as a result of the transactions contemplated by this Agreement, together with any
interest, penalties or additions to such transfer taxes (“Transfer Taxes”), shall be borne one-half
by WCA Parent and one-half by EWS Holdings. WCA Parent and EWS Holdings shall cooperate in filing
all necessary Tax Returns under applicable Laws with respect to Transfer Taxes.

     (f) WCA Parent shall inform EWS Holdings of the commencement of any audit, examination or
proceeding (“Tax Contest”) relating in whole or in part to a Tax Claim for which a WCA Indemnified
Person may be entitled to indemnity from EWS Holdings hereunder. With respect to any Tax Contest
for which EWS Holdings is liable under Article 6 for all Loss relating thereto, EWS
Holdings shall be entitled to control, in good faith, all proceedings taken in connection with such
Tax Contest with counsel satisfactory to WCA Parent; provided, however, that (x)
EWS Holdings shall promptly notify WCA Parent in writing of their intention to control such Tax
Contest, (y) in the case of a Tax Contest relating to Taxes of the Company for a Tax period
beginning before and ending after the Closing Date, EWS Holdings and WCA Parent shall jointly
control all proceedings taken in connection with any such Tax Contest and (z) if any Tax Contest
could reasonably be expected to have an adverse effect on any WCA Indemnified Person in any Tax
period beginning after the Closing Date, the Tax Contest shall not be settled or resolved without
Buyer’s consent, which consent shall not be unreasonably withheld or delayed. Notwithstanding the
foregoing, if notice is given to EWS Holdings of the commencement of any
Tax Contest and EWS Holdings do not, within ten (10) Business Days after WCA Parent’s notice
is given, give notice to WCA Parent of its election to assume the defense thereof (and in

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connection therewith, acknowledge in writing the indemnification obligations hereunder of EWS
Holdings), EWS Holdings shall be bound by any determination made in such Tax Contest or any
compromise or settlement thereof effected by WCA Parent. The failure of WCA Parent to give
reasonably prompt notice of any Tax Contest shall not release, waive or otherwise affect EWS
Holdings’ obligations with respect thereto. WCA Parent and the Emerald Companies shall use their
reasonable efforts to provide EWS Holdings with such assistance as may be reasonably requested by
EWS Holdings in connection with a Tax Contest controlled solely or jointly by EWS Holdings.

     5.2 Regulatory and Other Approvals. The WCA Parties will, as promptly as practicable,
(i) take all commercially reasonable steps necessary or desirable to obtain all consents, approvals
or actions of, make all filings with and give all notices to Governmental or Regulatory Authorities
or any other Person required of the WCA Parties to consummate the transactions contemplated by this
Agreement or the Transaction Documents, (ii) provide such other information and communications to
such Governmental or Regulatory Authorities or other Persons as the Emerald Parties or such
Governmental or Regulatory Authorities or other Persons may reasonably request in connection
therewith and (iii) cooperate with the Emerald Parties in connection with the performance of its
obligations under this Section 5.2. To the extent that any involvement from any Emerald
Party is needed, the Emerald Parties agree to reasonably cooperate with and assist the WCA Parties
in the performance of its obligations under this Section 5.2. The WCA Parties will provide
prompt notification to EWS Holdings when any such consent, approval, action, filing or notice above
is obtained, taken, made or given, as applicable, and will advise Emerald of any communications
(and, unless precluded by Law, provide copies of any such communications that are in writing) with
any Governmental or Regulatory Authority or other Person regarding any of the transactions
contemplated by this Agreement or any of the Transaction Documents.

     5.3 Interim Conduct of the Business. Until Closing, except for effecting the Gulf
Coast Business Transfer (as defined below) by EWS to EWS Gulf Coast, the Emerald Parties will
conduct their businesses only in the ordinary and usual course consistent with past practice. The
Emerald Parties agrees to promptly notify WCA Parent of any event or occurrence not in the ordinary
course of business of the Emerald Companies (except for effecting the Gulf Coast Business Transfer
by EWS to EWS Gulf Coast) and any event that could reasonably be expected to have a material effect
on the business of the Emerald Companies. Without limiting the generality of the foregoing and
except for effecting the Gulf Coast Business Transfer by EWS to EWS Gulf Coast, each Emerald Party
will use commercially reasonable efforts to:

          (a) pay its debts, Taxes and other obligations when due subject to good faith disputes over
such debts or Taxes and obtaining WCA Parent’s consent (which such consent shall not be
unreasonably withheld, conditioned or delayed) to the filing of material Tax Returns, if
applicable;

          (b) preserve intact its relationships with suppliers, customers, employees, creditors, and
others having business dealings with the Emerald Companies;

          (c) maintain in full force and effect its existing policies of insurance which affect the
Emerald Companies;

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          (d) preserve, protect and maintain all assets of each Emerald Company, ordinary wear and tear
excepted;

          (e) continue performance in the ordinary course of its obligations under the Contracts and
other obligations; and

          (f) take no action which would interfere with or prevent performance and consummation of this
Agreement, including without limitation solicitation from any other Person, any inquiries or
proposals related to the disposition of all or any portion of the Emerald Companies, or pursuing or
engaging in discussions with respect thereto.

     5.4 WCA Parent’s Approval of Certain Transactions. Until Closing, with respect to the
operation of the Emerald Companies (except for effecting the Gulf Coast Business Transfer by EWS to
EWS Gulf Coast), the Emerald Parties shall not, without WCA Parent’s prior written consent (which
such consent shall not be unreasonably withheld, conditioned or delayed), except in the ordinary
course of business consistent with past practices, directly or indirectly:

          (a) except for draws from time to time on the Comerica Credit Facility, incur, commit to incur
or permit to be incurred any debt or other obligation or liability, which increases the liabilities
of the Emerald Companies or results in the creation of a Lien other than a Permitted Lien on any
asset of an Emerald Company;

          (b) sell, assign, transfer, license or otherwise dispose of any interest in any asset of an
Emerald Company;

          (c) enter into any lease of real or personal property or any renewals thereof involving a
rental obligation;

          (d) permit any Lien other than a Permitted Lien or claims against any assets of an Emerald
Company;

          (e) enter into any transaction, contract or commitment or waive any right, cancel any debt or
claim, or voluntarily suffer any extraordinary loss;

          (f) make any capital expenditure or commitments for additions to property, plant or equipment
constituting capital assets on behalf of the Emerald Companies in an aggregate amount exceeding
$50,000;

          (g) enter into any lease or installment purchase agreement providing for annual payments in
excess of $25,000; or

          (h) enter into any agreement to do or engage in any of the foregoing.

     5.5 NASDAQ Listing. WCA Parent agrees to list, prior to the Closing, on NASDAQ the
Closing Shares to be issued hereunder.

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     5.6 Pre-Closing Access. The Emerald Parties agree that upon reasonable notice and
subject to applicable Laws relating to the exchange of information, between the Original Agreement
Date and the Closing, the Emerald Parties will permit representatives of the WCA Parties to have
access at all reasonable times, and in a manner so as not to interfere unreasonably with the normal
business operations of the Emerald Companies, to the premises, properties, personnel, books,
records (including Tax records), contracts, and documents of or pertaining to the Emerald Companies
and to the Emerald Company Employees.

     5.7 Employee Matters. Except as may be required by Law and with respect to effecting
the Gulf Coast Business Transfer by EWS to EWS Gulf Coast, the Emerald Parties will refrain from
directly or indirectly:

          (a) making any material representation or promise, oral or written, to any Emerald Company
Employee concerning any Benefit Plan, except for statements as to the rights or accrued benefits of
any Emerald Company Employee under the terms of any Benefit Plan;

          (b) making any increase in the salary, wages or other compensation of any Emerald Company
Employee;

          (c) adopting, entering into or becoming bound by any Benefit Plan, employment-related Contract
or collective bargaining agreement with respect to the Acquired Businesses or any of the Emerald
Company Employees, or amending, modifying or terminating (partially or completely) any such Benefit
Plan, employment-related Contract or collective bargaining agreement, except to the extent required
by applicable Law; or

          (d) establishing or modifying any (i) targets, goals, pools or similar provisions in respect
of any fiscal year under any Benefit Plan or any employment-related Contract or other compensation
arrangement with or for Emerald Company Employees or (ii) salary ranges, increase guidelines or
similar provisions in respect of any Benefit Plan or any employment-related Contract or other
compensation arrangement with or for Emerald Company Employees.

          (e) EWS Holdings will administer each Benefit Plan, or cause the same to be so administered,
in all material respects in accordance with the applicable provisions of the Code, ERISA and all
other applicable Laws. EWS Holdings will promptly notify WCA Parent in writing of each receipt by
the Emerald Parties (and furnish WCA Parent with copies) of any notice of investigation or
administrative proceeding by the IRS, Department of Labor, the Pension Benefit Guaranty Corporation
or other Person involving any Benefit Plan.

          (f) Prior to Closing, the Parties shall cooperate and take such actions reasonably necessary
and appropriate to provide for the transition of the Emerald Company Employees and the provision of
benefits to such Emerald Company Employees up to and following the Closing Date.

     5.8 Notice of Developments. Each Party will give prompt written notice to the other
Party of any fact, event or circumstances known to it that (i) is reasonably likely, individually
or taken together with all other facts, events and circumstances known to it, to result in any
Material Adverse Effect or (ii) would cause or constitute a material breach of any of its
representations, warranties or covenants in this Agreement. Except as otherwise provided in this
Agreement, no

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disclosure by any Party pursuant to this Section, however, shall be deemed to amend
or supplement any schedule hereto or to prevent or cure any misrepresentation or breach of
warranty.

     5.9 Exclusivity . Until the earlier of the Closing or the termination of this
Agreement in accordance with Article 8, no Emerald Party nor any of its Affiliates will
solicit, initiate, encourage, negotiate or enter into any agreement regarding the submission of any
proposal or offer from any Person other than the WCA Parties relating to the acquisition of all or
any portion of the equity interests or the assets of any Emerald Company (other than the Gulf Coast
Business) (including any acquisition structured as a merger, consolidation, or share exchange).

     5.10 Confidentiality. Neither the Emerald Parties nor any direct or indirect
subsidiary of EWS Holdings shall disclose to any Person or make use of any trade secrets or
confidential information of the Emerald Companies (collectively, “Emerald Confidential
Information”), other than (i) to disclose the Emerald Confidential Information to the WCA Parties
and its counsel, (ii) in the ordinary course of business prior to the Effective Time or (iii) with
respect to the ownership or operation of the Gulf Coast Business by EWS Holdings or any of its
Affiliates (or any successor in interest thereto) prior to and after the Effective Time. The term
“Emerald Confidential Information” does not include any trade secrets or confidential information
of the Emerald Companies that (i) is or becomes generally available to the public other than as a
result of a disclosure by any Emerald Party or any direct or indirect subsidiary of EWS Holdings
prior to the Effective Time or by EWS Holdings or any direct or indirect subsidiary of EWS Holdings
(but excluding any Emerald Company) (collectively the “Emerald Restricted Parties”) after the
Effective time, in either case in violation of this Section 5.10, (ii) lawfully becomes
available to any Emerald Restricted Party after the Effective Time hereof on a nonconfidential
basis from a source not bound by a confidentiality agreement with or other contractual, legal or
fiduciary obligation of confidentiality to any Emerald Restricted Party or (iii) is independently
developed by or on behalf of Emerald Restricted Party without use of or reference to any Emerald
Confidential Information. In the event that any Emerald Party or any direct or indirect subsidiary
of EWS Holdings prior to the Effective Time or any Emerald Restricted Party after the Effective
Time is requested or required (by oral questions, interrogatories, requests for information or
documents in legal proceedings, subpoena, civil investigative demand or other similar or
equivalent process) to disclose any of the Emerald Confidential Information, such party shall,
to the extent lawfully permitted, provide WCA Parent with written notice of any such request or
requirement so that WCA Parent may seek (at WCA Parent’s sole cost and expense) a protective order
or other appropriate remedy, consult with such party with respect to taking steps to resist or
narrow the scope of such request or legal process and/or waive compliance, in whole or in part,
with the provisions of this Section 5.10. If, in the absence of a protective order or
other remedy or the receipt of a waiver by WCA Parent, such Emerald Party or Emerald Restricted
Party, as the case may be, is nonetheless, upon the advice of its legal counsel, legally compelled
to disclose any Emerald Confidential Information, such party may, without liability under this
Section 5.10, disclose only that portion of such Emerald Confidential Information that such
counsel advises that such party is legally required to be disclosed, provided that such party
exercises its good faith efforts to preserve the confidentiality of the Emerald Confidential
Information, including, without limitation, by cooperating with WCA Parent (at WCA Parent’s sole
cost and expense) to obtain an appropriate protective order or other reliable assurance that
confidential treatment will be accorded such Emerald Confidential Information. Without

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limiting
the right of the WCA Parties to pursue all other legal and equitable rights available to it for
violation of this Agreement by the any Emerald Party or any direct or indirect subsidiary of EWS
Holdings or their respective agents, it is agreed that other remedies cannot fully compensate the
WCA Parties for such a violation and that the WCA Parties shall be entitled to injunctive relief to
prevent violation or continuing violation thereof. It is the intent and understanding of each
party hereto that if, in any action before any court or agency legally empowered to enforce this
Agreement, any term, restriction, covenant or promise shall be deemed modified to the extent
necessary to make it enforceable by such court or agency. Notwithstanding anything to the contrary
in this Agreement, each WCA Party acknowledges and recognizes that the Emerald Restricted Parties
or their Affiliates either are or may from time to time be engaged in one or more lines of business
that directly or indirectly compete with one or more of the WCA Parties or their Affiliates (a
“Competing Business”). Each WCA Party agrees and recognizes that nothing in this Section
5.10 shall (i) prevent, deter, limit or hinder, in any way, any Emerald Restricted Party or any
of their Affiliates or their respective successors in interest from engaging in any Competing
Business, including, but not limited to, the Gulf Coast Business and (ii) restrict any Emerald
Restricted Party’s use of any of its overall knowledge and understanding of the waste services
industry.

     5.11 Publicity. No Emerald Party shall issue a press release or other public
disclosure without advance approval thereof by WCA Parent except to the extent required by Law.
EWS Holdings shall have the right to review and comment on any press release or other public
disclosure issued by WCA Parent concerning this Agreement or the transactions contemplated hereby.

     5.12 Legal Requirements. Each of Emerald Parties and the WCA Parties will take all
reasonable actions necessary to comply promptly with all legal requirements which may be imposed on
them with respect to the consummation of the transactions contemplated by this Agreement or the
Transaction Documents and will promptly cooperate with and furnish information to any Party
necessary in connection with any such requirements imposed upon such other Party in connection with
the consummation of the transactions contemplated by this Agreement or the Transaction Documents.

     5.13 Further Assurances. Subject to the terms and conditions of this Agreement, the
Emerald Parties and the WCA Parties each agree to use reasonable best efforts in good faith and to
cause to be taken, such further actions and execute such other documents as may be reasonably
required to promptly fulfill the conditions to the Closing, permit the consummation of the
transactions contemplated under this Agreement and to further secure to each party the rights
intended to be conferred hereby and the other agreements ancillary to the transactions contemplated
hereby.

     5.14 Financial Statements.

          (a) As promptly as reasonably practicable and in any event on or before the twentieth day of
each month from the Original Agreement Date to the Closing Date, EWS Holdings shall deliver to WCA
Parent the internal monthly unaudited financial statements (balance sheet, statement of operations
and statement of cash flows) of the Emerald Companies for the prior month.

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          (b) EWS Holdings shall provide unaudited financial statements for each of the Emerald
Companies for the three months ending December 31, 2010 on or prior to March 31, 2011.

     5.15 Real Property Documents. As promptly as practicable following the execution
hereof, WCA Waste will obtain a commitment for title insurance from Chicago Title Insurance Company
(the “Title Insurer”) with respect to real property located in Florida covering the Emerald
Companies’ Real Property, together with copies of all documents evidencing title exceptions
thereon, and an updated survey of such real property. Copies of such commitments for title
insurance and updated surveys shall be provided to EWS Holdings. All such title insurance policies
and any fees or other expenses related thereto shall be paid for by WCA Parent.

     5.16 Use of Emerald Company Name. Promptly following the Closing, WCA Parent shall
take all necessary action to change the company name of EWS. Following the Closing, neither WCA
Parent nor any of its Subsidiaries will use the terms “Emerald” or “EWS” in connection with the
businesses of the Emerald Companies. Notwithstanding the foregoing, WCA Parent and its
Subsidiaries shall be entitled to keep the names “Emerald,” “Emerald Waste Services,” “EWS” or
other similar names on assets of the Emerald Companies, including vehicles and containers, for a
period not to exceed 18 months following Closing. In addition, WCA Parent and its Subsidiaries may
use the names “Emerald,” “Emerald Waste Services,” “EWS” or other similar names to the extent
reasonably necessary to obtain all rights, benefits and privileges under any agreement to which an
Emerald Company is a party.

     5.17 Closure Financial Assurances; Other Bond Obligations. The Parties acknowledge
that, notwithstanding any limitation of this Agreement to the contrary, at Closing the WCA Parties
shall succeed to all the closure and post-closure obligations and liabilities as well as any new,
continuing or recurring compliance obligations associated with the Gainesville Transfer Station
(all such foregoing obligations and liabilities, the “Transfer Station Liabilities”). Any and all
performance bonds, collection bonds and other types of bonds or any other kind of financial
assurance provided related to the Gainesville Transfer Station in effect prior to the Closing Date,
each of which is set forth on Schedule 5.17 hereto, shall be assumed by a WCA Party or
terminated on or prior to the Closing Date and any associated collateral shall be returned as
directed by EWS Holdings. The WCA Parties shall obtain all performance bonds, collection bonds and
other types of bonds related to the Gainesville Transfer Station and provided financial assurance
in connection therewith required by and in accordance with applicable Laws and such bonds shall be
effective as of the Closing Date.

     5.18 Updated Disclosure: Breaches.

          (a) From and after the Original Agreement Date until the Closing each Party hereto shall
promptly notify the other Parties hereto in writing of (i) the occurrence, or non-occurrence, of
any event that would be likely to cause any condition to the obligations of any Party to effect the
transactions contemplated by this Agreement not to be satisfied or (ii) the failure of any WCA
Party or any Emerald Party, as the case may be, to comply with or satisfy any covenant, condition
or agreement to be complied with or satisfied by it pursuant to this Agreement that would be likely
to result in any condition to the obligations of any Party to effect

39

 

the transactions contemplated
by this Agreement not to be satisfied; provided, however, that the delivery of any notice pursuant
to this Section 5.18 shall not otherwise limit or affect the remedies available hereunder
to the Parties receiving such notice.

          (b) Until the Closing, the Emerald Parties shall have the continuing obligation to promptly
amend or supplement the information contained in the Emerald Disclosure Schedule with respect to
any matter heretofore existing or hereafter discovered that was in existence on the Original
Agreement Date or hereafter arising which, if existing, occurring or known as of the Original
Agreement Date, would have been required to be set forth or described in the Emerald Disclosure
Schedule or which is otherwise necessary to correct any information in the Emerald Disclosure
Schedule which has been rendered inaccurate thereby.

          (c) Neither the amendment or supplementation of the Emerald Disclosure Schedule pursuant to
the obligation in Section 5.18(b) nor any disclosure after the Original Agreement Date of
the untruth of any representation and warranty made in this Agreement shall operate as a cure of
any breach of (i) the failure to disclose the information or (ii) any untrue representation or
warranty made herein. Notwithstanding the foregoing, if such supplementation by an Emerald Party
(x) is consented to in writing by WCA Parent or (y) was provided to WCA Parent not less than five
(5) Business Days prior to the Closing Date and discloses any fact or set of facts that, either
singly or in the aggregate with other facts disclosed pursuant to such obligation, is not, or is
not reasonably likely to result in, a Material Adverse Effect on the
Emerald Companies, such supplementation shall be deemed to cure any such untrue representation
or warranty, and such representation or warranty, as so supplemented, shall be deemed to have been
amended accordingly.

     5.19 Gulf Coast Business. EWS shall take all necessary actions to transfer the Gulf
Coast Assets and Gulf Coast Liabilities to EWS Gulf Coast (the “Gulf Coast Business Transfer”).
The assets and liabilities of EWS that remain with EWS following the Gulf Coast Business Transfer
will be as set forth on Schedule 5.19.

     5.20 Post-Closing Transfer of Gulf Coast Contracts. To the extent that any contract,
license, permit or other asset pertaining to the Gulf Coast Business has not been previously
assigned, transferred or contributed (“Transferred”) by EWS to EWS Gulf Coast on or prior to the
Closing because such contract, license, permit or other asset is not capable of being Transferred
without the consent, approval, novation or waiver of a third Person or a Governmental or Regulatory
Authority and such consent, approval, novation or waiver has not been able to be obtained from such
third Person or a Governmental or Regulatory Authority by the Emerald Parties on or prior to the
Closing, then from and after the Closing the WCA Parties (including each Emerald Company) will
cooperate with EWS Holdings and its remaining Subsidiaries (including EWS Gulf Coast) in obtaining
each such consent, approval, novation or waiver and, in the interim, shall provide to EWS Gulf
Coast the benefits (and the burdens) of any such contract, license, permit or other asset until
each such contract, license, permit or other asset has been Transferred to EWS Gulf Coast.

     5.21 Escrow Agreements. The Parties shall take all necessary actions to agree upon
the terms and conditions of the Escrow Agreement prior to the Closing.

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ARTICLE VI

6. Survival of Covenants, Representations and Warranties; Indemnification.

     6.1 Survival of Covenants, Representations, and Warranties.

          (a) The representations and warranties of the Parties contained in this Agreement shall
survive the Closing hereunder and continue in full force and effect for eighteen (18) months
following the Closing Date (“R&W Expiration Date”). EWS Holdings shall be obligated to indemnify
the WCA Indemnified Parties for (i) any Claims (other than Environmental Claims or Tax Claims) for
a period of two (2) years following the Closing Date and (ii) any Environmental Claims or Tax
Claims for three (3) years following the Closing Date (each, a “Claims Expiration Date” and,
together with the R&W Expiration Date, each an “Expiration Date”).

          (b) No Party shall be obligated to indemnify any other Party pursuant to this Article
6 for any Claim that is first made after the applicable Expiration Date. Claims pursuant to
this Article 6 first made prior to an applicable Expiration Date shall be subject to
indemnity pursuant to this Article 6 throughout the entirety of the Proceeding or
Proceedings arising out of such Claim, notwithstanding the fact that such Proceeding or Proceedings
may extend beyond the applicable Expiration Date.

     6.2 Indemnification by Emerald. From and after the Closing, subject to the
limitations set forth in this Article 6, for Claims for indemnification made under this
Section 6.2, EWS Holdings will, from and after Closing and during the period prior to the
Expiration Date, unconditionally, absolutely and irrevocably agree to and shall defend, indemnify
and hold harmless the WCA Parties and each of their respective subsidiaries, shareholders,
Affiliates, officers, directors, employees, counsel, accountants, agents, successors, assigns,
heirs and legal and personal representatives (the WCA Parties and all such Persons are collectively
referred to as “WCA Indemnified Persons”) from and against, and shall reimburse the WCA Indemnified
Persons for, each and every Loss paid, imposed on or incurred by the WCA Indemnified Persons
relating to, resulting from or arising out of: (a) any inaccuracy in any representation or warranty
of any Emerald Party under this Agreement, (including the schedules hereto), or any breach or
nonfulfillment of any covenant, agreement or other obligation of any Emerald Party under this
Agreement or any Transaction Document delivered pursuant hereto and (b) all Claims arising with
respect to facts, conditions, events, operations and circumstances existing prior to the Closing
Date other than facts, conditions, events, operations and circumstances disclosed in the Emerald
Disclosure Schedule or any Transfer Station Liabilities; provided, however, in the event of any
Claim that arises with respect to facts, conditions, events, operations and circumstances arising
both before and after the Closing Date, EWS Holdings’ indemnification obligations shall be limited
to such matters arising with respect to facts, conditions, events, operations and circumstance on
or prior to the Closing Date.

     6.3 Indemnification by the WCA Parties. For claims for indemnification made under
this Section 6.3, the WCA Parties will, from and after Closing and during the period prior
to the R&W Expiration Date, jointly and severally, unconditionally, absolutely and irrevocably
agree to and shall defend, indemnify and hold harmless EWS Holdings and its subsidiaries (other

41

 

than the Emerald Companies), shareholders, Affiliates, officers, directors, employees, counsel,
accountants, agents, successors, assigns, heirs and legal and personal representatives (EWS
Holdings and all such Persons are collectively referred to as “Emerald Indemnified Persons”) from
and against, and shall reimburse the Emerald Indemnified Persons for, each and every Loss paid,
imposed on or incurred by Emerald Indemnified Persons, directly or indirectly, relating to,
resulting from or arising out of any inaccuracy in any representation or warranty of any WCA Party
under this Agreement, (including the schedules hereto), or any breach or nonfulfillment of any
covenant, agreement or other obligation of any WCA Party under this Agreement or any Transaction
Document delivered pursuant hereto.

     6.4 Notice and Defense of Claims.

          (a) Third Party Claims. In the event that, subsequent to the Closing, any Third Party
Claim shall be brought or asserted under this Article 6 against a Party (or any successor
thereto) (each such Party, an “Indemnified Person”) in respect of which indemnity may be sought
under this Article 6 from another Party (or any successor thereto) (each such Party, an
“Indemnifying Person(s)”), the Indemnified Person shall give prompt written notice of such Third
Party Claim, together with a statement of any available information regarding such claim, to the
Indemnifying Person within ten (10) days after learning of such claim (or within such shorter time
as may be necessary to give the Indemnifying Party a reasonable opportunity to respond to and
defend such claim). The Indemnifying Person shall have the right upon written notice to the
Indemnified Person, within thirty (30) days after receipt from the Indemnified Person of notice of
such claim, to conduct at its expense the defense against such claim in its own name, or if
necessary in the name of the Indemnified Person. In the event that the Indemnifying Party elects
to conduct the defense of the subject claim, the Indemnifying Party shall employ counsel reasonably
satisfactory to the Indemnified Person and pay all expenses of such counsel and the Indemnified
Person will cooperate with and make available to the Indemnifying Person such assistance and
materials as may be reasonably requested by such Indemnifying Person. In no event shall any
Indemnified Person be required to make any expenditure or bring any cause of action to enforce the
Indemnifying Person’s obligations and liability under and pursuant to the indemnifications set
forth in this Article 6. In addition, the filing of a Proceeding shall not be required as
a condition or prerequisite to the Indemnifying Person’s obligations under this Article 6,
if the Indemnified Person is required to expend sums for investigation or remedial purposes as a
result of a threatened Third Party Claim. The Indemnified Person shall have the right to employ
separate counsel in any of the foregoing Third Party Claims and to participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of the Indemnified
Person unless the Indemnified Person shall in good faith, upon advice of counsel, determine that
there exist actual or potential conflicts of interest which make representation by the same counsel
inappropriate. The Indemnified Person’s right to participate in the defense or response to any
Third Party Claim should not be deemed to limit or otherwise modify its obligations under this
Article 6, provided that the Indemnified Person shall have the right to compromise and
settle such Third Party Claim only with the prior written consent of the Indemnifying Person. In
the event that the Indemnifying Person, within thirty (30) days after notice of any such Third
Party Claim, fails to assume the defense thereof, the Indemnified Person shall have the right to
undertake the defense, compromise or settlement of such Third Party Claim for the account of the
Indemnifying Person, subject to the right of the Indemnifying Person to assume the defense of such
Third Party Claim with counsel reasonably

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satisfactory to the Indemnified Person at any time prior
to the settlement, compromise or final determination thereof. Anything in this Article 6
to the contrary notwithstanding, the Indemnifying Person shall not, without the Indemnified
Person’s prior written consent, settle or compromise any Third Party Claim or consent to the entry
of any judgment with respect to any Third Party Claim for anything other than money damages paid by
or on behalf of the Indemnifying Person. If an offer is made to settle a Third Party Claim, which
offer the Indemnifying Person is permitted to settle under this Section 6.4(a) only upon
the prior written consent of the Indemnified Person, and the Indemnifying Person desires to accept
and agree to such offer, the Indemnifying Person will give prompt written notice to the Indemnified
Person to that effect. If the Indemnified Person does not consent to such firm offer within twenty
(20) days
after its receipt of such notice, the Indemnified Person may continue to contest or defend
such Third Party Claim and, in such event, the maximum liability of the Indemnifying Person as to
such Third Party Claim (subject to the limitations set forth in this Article 6, including,
but not limited to, Section 6.6) will not exceed the amount of such settlement offer, plus
costs and expenses paid or incurred by the Indemnified Person through the date such settlement
offer is given to the Indemnified Person to the extent such amount is otherwise indemnifiable
hereunder. The Indemnifying Person may, without the Indemnified Person’s prior written consent,
settle or compromise any such Third Party Claim or consent to entry of any judgment with respect to
any such Third Party Claim that requires solely the payment of money damages by or on behalf of the
Indemnifying Person and that includes as an unconditional term thereof the release by the claimant
or the plaintiff of the Indemnified Person from all liability in respect of such Proceeding. The
Indemnifying Person shall be liable (subject to the limitations set forth in this Article
6, including, but not limited to, Section 6.6) for any settlement of any Third Party
Claim effected pursuant to and in accordance with this Section 6.4(a) and for any final
judgment (subject to any right of appeal), and the Indemnifying Person shall indemnify and hold
harmless (subject to the limitations set forth in this Article 6, including, but not
limited to, Section 6.6) an Indemnified Person from and against any Loss by reason of such
settlement or judgment. No Indemnified Person shall take any action the purpose of which is to
prejudice the defense of any Third Party Claim subject to indemnification hereunder or to induce a
third party to assert a Third Party Claim subject to indemnification hereunder.

          (b) Direct Claims. It is the intent of the Parties that all Direct Claims by an
Indemnified Person against a Party not arising out of a Third Party Claim shall be subject to and
benefit from the terms of this Article 6. Any Direct Claim may only be asserted by giving
the Indemnifying Party reasonably prompt written notice thereof, and the Indemnifying Party will
have a period of thirty (30) days within which to satisfy such Direct Claim. If the Indemnifying
Party does not so respond within such thirty (30) day period, the Indemnifying Party will be deemed
to have rejected such Direct Claim (a “Dispute”), in which event the Indemnified Person and the
Indemnifying Party will attempt in good faith to resolve through negotiation such Dispute.

     6.5 Payment and Interest. The Indemnifying Person shall make any payment required to
be made under this Section 6.5 in immediately available funds and on demand; provided that
EWS Holdings may make payments required to be made under this Article 6 through the
delivery of all or a portion of the Indemnification Shares pursuant to the terms of the Escrow
Agreement and until such time as the Indemnification Shares are exhausted. Indemnification Shares
shall be deemed to have a per share value equal to the closing sales price

43

 

of WCA Parent’s common
stock as reported on NASDAQ for the ten (10) Trading Days ending one (1) Trading Day prior to the
date on which such indemnification claim is fully and finally resolved pursuant to the procedures
set forth in this Article 6 (the “Share Value”). Any amounts or payments required to be
paid by an Indemnifying Person under this Section 6.5 which are not paid within sixty (60)
days of receipt by the Indemnifying Person of the Indemnified Person’s demand therefor shall
thereafter be deemed delinquent, and the Indemnifying Person shall pay to the Indemnified Person
immediately upon demand, interest at the rate of eight percent (8%) per annum, from the date such
payment becomes delinquent to the date of payment of such delinquent sums. The WCA
Parties and the Emerald Parties agree that the Share Value has been agreed upon solely for the
purpose of satisfying indemnification claims hereunder and that such Share Value may not be the
fair market value of each share of WCA Parent Common Stock on such relevant date.

     6.6 Limits of Liability.

          (a) Except as set forth in Section 6.6(b) below and in the case of fraud or
intentional misconduct of the WCA Parties, the liability of the WCA Parties to the Emerald Parties
under this Agreement shall not exceed $4,500,000 (the “WCA Cap”). Except in the case of fraud or
intentional misconduct of the Emerald Parties, the liability of EWS Holdings to the WCA Parties
under this Agreement shall not exceed $4,500,000 (the “Emerald Cap”); provided,
however, if there has not been any Claim made by any WCA Indemnified Person pursuant to
Article 6 prior to or on the date the First Indemnification Shares are released from the Escrow
Fund pursuant to the terms of the Escrow Agreement, then after such date the “Emerald Cap” shall
instead be an amount not in excess of $3,600,000. The liability of EWS Holdings shall not exceed
the interest of EWS Holdings in the Indemnification Shares and neither EWS Holdings nor any Emerald
Equity Holder shall have any further liability pursuant to this Article 6 once all
Indemnification Shares have been released or otherwise distributed from the Escrow. No such party
shall be obligated to provide indemnification under this Agreement for any damage until the
aggregate indemnifiable Losses exceed $150,000 (the “Threshold”).

          (b) Notwithstanding the limits set forth in (a) above, no Party’s indemnity obligations
hereunder shall be subject to the Threshold, nor shall be limited to the respective Party’s Cap
with respect to any obligations of the respective Parties (including all subsidiaries thereof) to
indemnify for Tax Claims; provided that any such indemnity obligations shall be subject to the
provisions of Section 6.2.

          (c) Notwithstanding anything to the contrary contained in this Agreement, the following
limitations shall apply to claims under this Article 6 or otherwise made with respect to
this Agreement or any Transaction Agreement:

               (i) The amount of any Losses to which the WCA Parties are entitled with respect to any claim
pursuant to this Article 6 shall be reduced by (A) the amount of any payment recovered or
recoverable by the WCA Parties with respect such Losses from any insurance provider or any other
third party and (B) the amount of any cash Tax benefit, as determined by WCA Parent in good faith
after consultation with its tax advisors, realizable by WCA Parent or its Subsidiaries that is
attributable to the Losses to which such claim relates. If an Indemnified Person receives any
amounts under applicable insurance policies, or from any

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other third party alleged to be
responsible for any Losses, subsequent to an indemnification payment by an Indemnifying Party, then
such Indemnified Person shall promptly reimburse such Indemnifying Party for any payment made or
expense incurred by such Indemnifying Party in connection with providing such indemnification
payment up to the amount received by the Indemnified Person, net of any expenses reasonably
incurred by such Indemnified Person in collecting such amount; provided that if a portion of any
Losses incurred by a WCA Indemnified Person was not indemnified due to the operation of the Emerald
Cap, then such WCA
Indemnified Person will only be required to reimburse EWS Holdings if and to the extent the
amount received by such WCA Indemnified Person exceeds the amount of the non-indemnified Losses.
Each Indemnified Person shall use commercially reasonable efforts to collect any amounts available
from such other third party alleged to have responsibility therefor (but shall not be required to
seek payment from any insurance coverage) prior to making any claim for indemnification under this
Article 6.

               (ii) In no event shall any Indemnifying Person have any obligation or liability for (A) any
Losses that are consequential, in the nature of lost profits (including, without limitation, loss
of profit or revenue, any multiple of reduced cash flow or any adjustment based on price to
earnings or similar ratios), interference with operations, or loss of customers, tenants, lenders,
investors or buyers, diminution in the value of property, special or punitive or otherwise not
actual out-of-pocket damages, or (B) any Losses arising from or relating to, directly or
indirectly, any act, omission or transaction carried out by or at the express written request of
the WCA Parties before, on or after the Closing Date, including, without limitation, any change in
the accounting policies, practices or procedures of the Emerald Companies after the Closing.

               (iii) Any liability for indemnification hereunder shall be determined without duplication of
recovery by reason of the state of facts giving rise to such liability constituting a breach of
more than one representation, warranty, covenant or agreement. Without limiting the foregoing,
amounts paid in accordance with Section 1.4 with respect to Deferred Revenue shall not be
subject to duplication (e.g., in the event or to the extent that an inaccuracy in the Emerald
Companies’ financial statement representations gives rise to such adjustment).

               (iv) Each Indemnified Party shall take, and shall cause their respective Affiliates to take,
all reasonable steps to mitigate and otherwise minimize its Losses to the extent reasonably
possible upon and after becoming aware of any event which would reasonably be expected to give rise
to any Losses.

          (d) From and after the Closing, except with respect to claims for equitable relief, including,
without limitation, specific performance, or claims based on fraud or intentional
misrepresentation, made with respect to breaches of any covenant or agreement contained in this
Agreement or the Transaction Documents, the rights provided to the WCA Indemnified Persons and the
Emerald Indemnified Persons under this Article 6 shall be the sole and exclusive remedies
of the Parties and their respective Affiliates with respect to claims under this Agreement or
otherwise relating to the transactions contemplated hereby. Without limiting the generality of the
foregoing, in no event shall any Party, its successors or permitted assigns be entitled to claim or
seek rescission of the transactions contemplated by this Agreement.

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ARTICLE VII

7. Conditions to Closing.

     7.1 Conditions to the WCA Parties’ Obligations. The obligations of the WCA Parties to
consummate the Closing are subject to the fulfillment or waiver by WCA Parent in writing on or
before the Closing of each of the following conditions by the Emerald Parties:

          (a) Representations and Warranties. The representations and warranties of the Emerald
Parties contained in Article 3 shall be true and correct on and as of the Closing with the
same effect as though such representations and warranties had been made on and as of the date of
the Closing, except where the failure of any such representation or warranty to be true and correct
would not reasonably be expected to have a Material Adverse Effect.

          (b) Performance. The Emerald Parties shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement or the Transaction Documents
that are required to be performed or complied with by it on or before the Closing, except where the
failure to so perform would not reasonably be expected to have a Material Adverse Effect.

          (c) No Actions or Proceedings. No Proceeding shall be pending or threatened in
writing before any Governmental or Regulatory Authority which presents a substantial risk of the
restraint or prohibition of the transactions contemplated by this Agreement or the Transaction
Documents.

          (d) Government Approvals. All authorizations, permits, consents, orders or approvals
of, or declarations or filings with, or expiration of waiting periods imposed by, any Governmental
or Regulatory Authority necessary for the consummation of the transactions contemplated by this
Agreement shall have been filed, occurred or been obtained.

          (e) Third-Party Consents. All consents or waivers listed on Schedule 7.1(e) shall
have been obtained.

          (f) SAS No. 100 Review. WCA Parent shall have received from the Emerald Companies
independent audit firm a Statement on Accounting Standards (SAS) No. 100 review of the financial
statements of the Emerald Companies for each of the three month periods ended March 31, 2010, June
30, 2010 and September 30, 2010 and the nine-month period ended September 30, 2010.

          (g) Title to Real Property. Based on the review of the title commitments, title
exception documents and updated surveys obtained by the WCA Parties pursuant to Section
5.15, the title to the Emerald Companies Real Property are reasonably satisfactory to WCA
Parent, and the Title Insurer is ready, willing and able to issue at Closing, subject to the
payment of the appropriate premium therefor, title insurance policies in a form reasonably
satisfactory to WCA insuring the title to such properties subject to no exceptions other than those
that are reasonably acceptable to WCA Parent or which constitute Permitted Liens.

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          (h) Emerald Parties’ Deliveries. The applicable Emerald Parties shall have delivered,
or caused to be delivered, to WCA Parent the following (which in each case shall be in form and
substance satisfactory to WCA Parent):

               (i) Compliance Certificate. An authorized officer of EWS Holdings shall have
delivered to WCA Parent at the Closing a certificate stating that the conditions specified in
Sections 7.1(a) and (b) have been fulfilled.

               (ii) Secretary’s Certificate. The Secretary of EWS Holdings shall have delivered to
WCA Parent at the Closing a certificate stating that all approvals necessary to consummate the
transactions contemplated by this Agreement have been obtained and attaching thereto: (i) a copy of
the Organizational Documents of each Emerald Party (as amended and in effect through the date of
the Closing), certified by the Secretary of each such Emerald Party as the true and correct copies
thereof as of the Closing; and (ii) copies of resolutions of the manager and resolutions of the
members of EWS Holdings, evidencing the approval of this Agreement, the Transaction Documents and
other matters contemplated hereby.

               (iii) Escrow Agreement. EWS Holdings Holder shall have executed and delivered the
Escrow Agreement in form reasonably acceptable to WCA Parent.

               (iv) Pay-Off Letters. WCA shall have received a pay-off letter from each of Comerica
and the Other Creditors that confirms the satisfaction, release and termination of each Emerald
Party’s indebtedness to such party upon consummation of the transactions contemplated under this
Agreement.

               (v) Voting Agreement. EWS Holdings shall have executed and delivered a Voting
Agreement in substantially the form attached hereto as Exhibit B.

               (vi) Stockholders’ Agreement. EWS Holdings Holder shall have executed and delivered
the Stockholders’ Agreement in substantially the form attached hereto as Exhibit C.

               (vii) Release of Liens. Except for any Liens which are to be released by Comerica and
each Other Creditor upon receipt of the payoff amount set forth in such creditors’ payoff letter
pursuant to Sections 2.1(a) and 2.1(b), all other Liens (except for Permitted
Liens) shall have been irrevocably released and the Emerald Parties shall have delivered
documentation reasonably acceptable to WCA Parent to evidence that such Liens have been released.

               (viii) Delivery of Financial Statements. EWS Holdings shall have delivered to WCA
Parent the following financial statements in form satisfactory to WCA Parent in its discretion: (A)
“carve out” audited financial statements for the Emerald Companies for the fiscal years ended
December 31, 2008 and 2009 which have been audited by a PCAOB registered accounting firm, (B)
complete unaudited financial statements for the Emerald Companies for the nine month periods ended
September 30, 2009 and 2010, and (C) complete unaudited financial statements for the Emerald
Companies for each of the three month periods ended March 31, 2010, June 30, 2010 and September 30,
2010 and for the month ended October 31, 2010.

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               (ix) Delivery of Final Account Worksheet, Final Deferred Revenue Worksheet and Final
Reimbursement and Prepaid Items Worksheet. EWS Holdings shall have delivered to WCA Parent the
Final Account Worksheet, Final Deferred Revenue Worksheet and Final Reimbursement and Prepaid Items
Worksheet, each in form reasonably acceptable to WCA Parent.

               (x) Assignment and Assumption Agreement. The Emerald Companies shall have executed a
Assignment and Assumption Agreement with EWS Gulf Coast relating to the Accounts Receivable and
Accounts Payable in the form attached as Exhibit A hereto.

               (xi) Release Agreement. The Emerald Parties and the Mac Land Companies shall have
executed and delivered a release agreement in form reasonably acceptable to WCA Parent.

     7.2 Conditions to the Emerald Parties’ Obligations. The obligations of the Emerald
Parties to the WCA Parties under this Agreement are subject to the fulfillment or waiver by EWS
Holdings in writing on or before each Closing of each of the following conditions by the WCA
Parties:

          (a) Representations and Warranties. The representations and warranties of the WCA
Parties contained in Article 4 shall be true and correct on and as of the Closing with the
same effect as though such representations and warranties had been made on and as of the date of
the Closing, except where the failure of any such representation or warranty to be true and correct
would not reasonably be expected to have a Material Adverse Effect on the WCA Parties.

          (b) Performance. The WCA Parties shall have performed and complied with all
agreements, obligations and conditions contained in this Agreement or the Transaction Documents
that are required to be performed or complied with by the WCA Parties on or before the Closing,
except where the failure to so perform would not reasonably be expected to have a Material Adverse
Effect, it being acknowledged that the failure to pay all or any portion of the Purchase Price
shall be deemed to be failure to perform that would have a Material Adverse Effect.

          (c) No Actions or Proceedings. No Proceeding shall be pending or threatened in
writing before any Governmental or Regulatory Authority which presents a substantial risk of the
restraint or prohibition of the transactions contemplated by this Agreement or the Transaction
Documents.

          (d) Government Approvals. All authorizations, permits, consents, orders or approvals
of, or declarations or filings with, or expiration of waiting periods imposed by, any Governmental
or Regulatory Authority necessary for the consummation of the transactions contemplated by this
Agreement shall have been filed, occurred or been obtained.

          (e) Third-Party Consents. All consents or waivers listed on Schedule 7.2(e) shall
have been obtained.

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          (f) WCA Party Deliveries. The applicable WCA Party shall have delivered, or caused to
be delivered, to EWS Holdings or such other Persons described below, the following (which in each
case shall be in form and substance satisfactory to EWS Holdings):

               (i) Compliance Certificate. The President of WCA Parent shall have delivered to EWS
Holdings at the Closing a certificate stating that the conditions specified in Sections
7.2(a) and (b) have been fulfilled.

               (ii) Escrow Agreement. WCA Parent shall have executed and delivered the Escrow
Agreement in form reasonably acceptable to EWS Holdings.

               (iii) Net Cash Purchase Price. In the event the Net Cash Purchase Price is greater
than $0, WCA Parent shall have paid the Net Cash Purchase Price to EWS Holdings in accordance with
Section 2.1(d).

               (iv) Comerica Release Amount. WCA Parent shall have paid the Comerica Payment Amount
to Comerica in accordance with the Comerica Payoff Letter.

               (v) Other Indebtedness Payment Amount. WCA Parent shall have paid the Other
Indebtedness Payment Amount to each of the Other Creditors in accordance with each of the Other
Creditor Payoff Letters.

               (vi) Transaction Expenses Amount. WCA Parent shall have paid the Transaction Expenses
Amount to each of the Emerald Professionals in accordance with each of the Emerald Professional
Payoff Letters.

               (vii) Issuance of Closing Shares. WCA Parent shall have issued the Indemnification
Shares to the Escrow Agent to be held in the Escrow Fund for the benefit of EWS Holdings.

               (viii) Issuance of Distributed Shares. WCA Parent shall have issued the Distributed
Shares to EWS Holdings.

               (ix) Stockholders’ Agreement. WCA Parent shall have executed and delivered the
Stockholders’ Agreement in substantially the form attached as Exhibit C hereto.

               (x) Registration Rights Agreement. WCA Parent shall have executed and delivered the
Registration Rights Agreement in substantially the form attached as Exhibit D hereto.

               (xi) Release Agreement. WCA Parties shall have executed and delivered a release
agreement in form reasonably acceptable to EWS Holdings.

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ARTICLE VIII

8. Termination.

     8.1 Termination. This Agreement may be terminated, and the transactions contemplated
hereby may be abandoned:

          (a) at any time before the Closing, by mutual written agreement of the Emerald Parties and the
WCA Parties;

          (b) at any time before the Closing, by the Emerald Parties or the WCA Parties, in the event
(i) of a material breach hereof by the non-terminating party if such non-terminating party fails to
cure such breach within five (5) Business Days following notification thereof by the terminating
party or (ii) upon notification of the non-terminating party by the terminating party that the
satisfaction of any condition to the terminating party’s obligations under this Agreement becomes
impossible or impracticable with the use of commercially reasonable efforts if the failure of such
condition to be satisfied is not caused by a breach hereof by the terminating party; or

          (c) at any time after March 31, 2011 by either the Emerald Parties, on the one hand, or the
WCA Parties, on the other hand, upon notification of the non-terminating party by the terminating
party if the Closing shall not have occurred on or before such date and such failure to consummate
the Closing is not caused by a material breach of this Agreement by the terminating party.

     8.2 Effect of Termination. If this Agreement is validly terminated pursuant to
Section 8.1, this Agreement will forthwith become null and void, and there will be no
liability or obligation on the part of the Emerald Parties or the WCA Parties (or any of their
respective officers, directors, employees, agents or other representatives or Affiliates), except
as provided in the next succeeding sentence and except that the provisions with respect to expenses
in Section 10.1 will continue to apply following any such termination. Notwithstanding any
other provision in this Agreement to the contrary, upon termination of this Agreement pursuant to
Article 8, the Emerald Parties will remain liable to the WCA Parties for any willful breach
of this Agreement by the Emerald Parties existing at the time of such termination, and the WCA
Parties will remain liable to the Emerald Parties for any willful breach of this Agreement by the
WCA Parties existing at the time of such termination, and the Emerald Parties or the WCA Parties
may seek such remedies, including damages and fees of attorneys, against the other with respect to
any such breach as are provided in this Agreement or as are otherwise available at Law or in
equity.

ARTICLE IX

9. Certain Definitions.

     “Accounts Payable” means the accounts and amounts due and owing from the Emerald Companies to
its vendors, suppliers and other trade creditors on or prior to the Closing Date.

     “Accounts Receivable” means all trade accounts receivable and other rights to payment from
customers of the Emerald Companies and the full benefit of all security for such accounts or rights
to payment, including, but not limited to, all trade or other accounts receivable representing
amounts receivable in respect of goods shipped or products sold or services rendered to customers
of the Emerald Companies, (b) all other accounts or notes receivable of

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the Emerald Companies and
the full benefit of all security for such accounts or notes, (c) any claim, remedy or other right
related to any of the foregoing and (d) the BP Settlement Fund Receivable.

     “Acquired Businesses” means the business conducted by the Emerald Companies (but excluding,
for the avoidance of doubt, the Gulf Coast Business) of owning and operating and the Central
Florida Business, the Gainesville Transfer Station and the Orange City Property.

     “Affiliate” means (a) any entity directly or indirectly controlled by, controlling or under
common control with a Party; (b) any director or executive officer of such Party or of any entity
referred to in (a) above; and (c) if any Party is an individual, any member of the immediate family
(including parents, spouse, siblings, children and grandchildren) of such individual and any trust
whose principal beneficiary is such individual or one or more members of such immediate family and
any Person who is controlled by any such member or trust. For purposes of this definition, any
Person which owns directly or indirectly 20% or more of the securities having ordinary voting power
for the election of directors or other governing body of a corporation or 20% or more of the
partnership or other ownership interests of any entity (other than as a limited partner of such
other entity) will be deemed to “control” (including, with its correlative meanings, “controlled
by” and “under common control with”) such Person.

     “Base Cash Purchase Price” means Thirty Three Million Dollars ($33,000,000).

     “Benefit Plan” means any collective bargaining agreement or any bonus, pension, profit
sharing, deferred compensation, incentive compensation, stock ownership, stock purchase, stock
option, phantom stock, retirement, vacation, severance, disability, death benefit, hospitalization,
medical, dependent care, cafeteria, employee assistance, scholarship or other plan, program,
arrangement or understanding (whether or not legally binding) maintained in whole or in part,
contributed to, or required to be contributed to by the Companies for the benefit of any of their
respective present or former officers, employees or directors which is not a Pension Plan or
Welfare Plan.

     “BP Settlement Fund Receivable” means any account or note receivable, claim, remedy or other
right to payment from BP p.l.c. or its Affiliates or from any insurance provider or any other third
party (including, but not limited to, any alleged or actual joint tortfeasor or any Affiliate of
such joint tortfeasors) any of the foregoing Persons shall hereinafter be referred to as a “BP
Payor”) with respect to all claims asserted by or on behalf of any Emerald Company, regardless of
whether such claims are asserted before or after the Closing, with respect to damages suffered for
the period prior to the Effective Time by any such Emerald Company arising from the Deepwater
Horizon explosion and subsequent oil spill in the Gulf of Mexico, including, but not limited to,
(i) the emergency advance claim for $1,829,863 submitted on behalf of EWS Holdings to the Gulf
Coast Claims Facility administered by Kenneth R. Feinberg, as administrator thereof (the “GCCF”),
on or about November 21, 2010, or any claims for interim or final payments submitted by or on
behalf of EWS Holdings with respect to EWS and/or the Gulf Coast Business (such claim described in
this clause (i) shall hereinafter be referred to as an “EWS Holdings Claim” or a “EWS BP Claim”),
or (ii) any appeals of any denials of any EWS BP Claim.

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     “Claims” means any claims, liabilities, causes of action (arising under common law,
contract or statute), suits, judgments, demands, Liens (other than Permitted Liens), or
governmental investigations by any Person (other than any Emerald Company) relating to the Emerald
Companies, including, but not limited to, any Employee Benefit Claim, Environmental Claim,
Litigation Claim, Tax Claim or Title Claim and any Claim related to the Gulf Coast Business.

     “Comerica Credit Facility” means the Third Amended and Restated Revolving Credit and Term Loan
Agreement dated August 29, 2008 by and among EWS Holdings, MacLand Holdings and the financial
institutions party thereto, as the same may be amended prior to the Effective Time.

     “Deferred Revenue” means payments received and billings for services by the Emerald Parties
prior to the Closing Date for services to be provided by the Emerald Companies after the Closing
Date.

     “Direct Claim” means any claim under Article 6 by an Indemnified Party for
indemnification other than indemnification with respect to a Third Party Claim.

     “Disposal” or “disposed” means the unpermitted discharge, deposit, injection, dumping,
spilling, leaking or placing of any Polluting Substance into or on any land or water so that such
Polluting Substance or any constituent thereof may enter the environment or be emitted into the air
or discharged into any waters, including ground waters.

     “Employee Benefits Claim” means all claims, liabilities notices, actions, causes of action
(arising under common law, contract or statute), suits, judgments, demands, liens, governmental or
private investigations arising under any Pension Plan, Welfare Plan or other Benefit Plan.

     “Environmental Claim(s)” means all claims, liabilities, notices, actions, causes of action
(arising under common law, contract or statute), suits, judgments, demands, liens, written or other
express demand for investigations or testing, demands to study or notification of status of being
potentially responsible for clean-up of any facility or for being in violation or in potential
violation of any requirement of Environmental Law, whether threatened, sought, brought or imposed
relating to or which seeks to impose liability or to recover damages, losses, payments, penalties,
costs, fines, penalties, disbursements or expenses (including, without limitation, fees
disbursements and expenses of attorneys and other professional advisors and of expert witnesses and
costs of investigation, testing and preparation) regarding any Emerald Company or any of its
facilities, its assets or any operations conducted by such Emerald Company. The term
“Environmental Claim” also includes any costs incurred in responding to efforts to require or in
testing for the need for Remediation

     “Environmental Law(s)” means any and all federal, state and local laws, ordinances, rules,
regulations, operational memoranda, interpretations and orders of courts or administrative agencies
or authorities relating to pollution, contamination, preservation, protection or cleanup of the
environment (including, without limitation, ambient air, surface water, ground water, land surface,
wildlife, wetlands and subsurface strata), including, without limitation, the

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Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended; the
Solid Waste Disposal Act, as amended (“RCRA”); the Atomic Energy Act of 1954, as amended; the
Hazardous Materials Transportation Act, as amended; the Toxic Substances Control Act, as amended;
the Pollution Prevention Act of 1990, as amended; the Emergency Planning and Community Right to
know Act, as amended; the Clean Air Act, as amended; the Clean Water Act, as amended; the Oil
Pollution Act of 1990, as amended; the Safe Drinking Water Act, as amended; the Occupational Safety
and Health Act, as amended; all regulations promulgated under any of the foregoing from time to
time; and any and all other laws, rules and regulations relating to (a) improper use or treatment
of wetlands, pinelands or other protected land or wildlife; (b) pollution, contamination,
preservation, protection, decontamination, remediation or clean-up of the air, surface water,
groundwater, soil or protected lands; (c) exposure of persons or property to Polluting Substances
and the effects thereof; or (d) the release, threatened release, generation, extraction, mining,
presence, manufacture, processing, distribution in commerce, use, handling, discharge, recycling,
management, transfer, transportation, treatment, storage, Disposal or remediation of Polluting
Substances. Any specific references to a law shall include any amendments to it promulgated from
time to time.

     “Governmental or Regulatory Authority” means any court or federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrumentality having jurisdiction
over such Emerald Company or any of their respective assets or businesses.

     “Gulf Coast Area” means, collectively, Alabama and the Florida Panhandle area as it is
commonly known.

     “Gulf Coast Assets” means all of the assets associated with the Gulf Coast Business owned,
leased or used by EWS.

     “Gulf Coast Business” means the business of (i) owning and operating those certain hauling
operations in the Gulf Coast Area owned and operated by EWS and (ii) owning and operating each of
the landfills located in the Gulf Coast Area owned and operated by certain Subsidiaries of EWS
Holdings (but excluding any Emerald Company).

     “Gulf Coast Liabilities” means all of the liabilities associated with the Gulf Coast Business
owed by EWS.

     “Knowledge of the Emerald Parties” means (i) the actual knowledge of Mike Holmes and Nat
Buonfiglio and any other officer of the Emerald Parties with a title of vice president or higher
after reasonable inquiry of any other officers, directors and other employees or consultants of the
Emerald Parties reasonably believed to have knowledge of or who is responsible for such matters
after such named person, officer, director or employee shall have performed reasonable due
diligence to investigate such matter and (ii) the actual knowledge of Justin Kaplan, Paul Echausse
and Jeffrey Dombrick.

     “Knowledge of the WCA Parties” means the actual knowledge of the executive officers of WCA
Parent after reasonable inquiry of officers, directors and other employees or consultants of such
party (or subsidiaries of such party) reasonably believed to have knowledge of or who is

53

 

responsible for such matters after such officer, director or employee shall have performed
reasonable due diligence to investigate such matter.

     “Laws” means the requirements, standards, criteria and conditions set forth in applicable
federal, state and local statutes, ordinances, permits, licenses, orders, approvals, variances,
rules and regulations, including, without limitation, all such laws, rules, ordinances, decrees and
orders relating to intellectual property protection, transportation, wage and hour, antitrust
matters, consumer protection, currency exchange, environmental protection, equal employment
opportunity, health and occupational safety, pension and employee benefit matters, securities and
investor protection matters, labor and employment matters, and trading-with-the-enemy matters.

     “Lien” means any lien, mortgage, charge, restriction, pledge, security interest, option,
lease, claim, easement, encroachment or other encumbrance of any kind or nature whatsoever or
however arising, including any Tax lien.

     “Licenses” means all licenses, permits (including, without limitation, environmental,
construction and operation permits), franchises, certificates (including, without limitation,
certificates of occupancy) and other governmental authorizations.

     “Litigation Claim” means all claims, liabilities, causes of action (arising under common law,
contract or statute), suits, judgments, demands, Liens (other than Permitted Liens), governmental
or private investigations arising pursuant to any Proceeding involving any Emerald Party.

     “Loss” means any loss, damage, injury, liability, claim, demand, Proceeding, settlement,
judgment, award, fine, penalty, tax, fee, charge, cost or expense (including, without limitation,
reasonable costs of attempting to avoid or in opposing the imposition thereof, interest, penalties,
costs of preparation and investigation, and the reasonable fees, disbursements and expenses of
attorneys, accountants and other professional advisors) with respect to any claim, as well as with
respect to compliance with the requirements of the Environmental Laws or Environmental Claims.

     “Material Adverse Effect” means, with respect to any Person, any change, effect, event,
occurrence, state of facts or development that, individually or in the aggregate with any other
change, effect, event, occurrence, state of facts or development, is materially adverse to the
financial condition or results of operations of such Person, taken as a whole, and that cannot be
cured or favorably resolved prior to the Closing Date; provided, however, that none
of the following shall be deemed in itself, or in any combination, to constitute, and none of the
following shall be taken into account in determining whether there has been or will be, a Material
Adverse Effect: (a) any adverse change, effect, event, occurrence, state of facts or development
attributable to the announcement or pendency of the transactions contemplated by this Agreement;
(b) any adverse change, effect, event, occurrence, state of facts or development attributable to
conditions generally affecting the industry in which such Person participates, the United States
economy as a whole or the capital markets in general or the geographical markets in which such
Person operates; (c) any adverse change, event, development, or effect arising from or relating to
changes in GAAP; (d) any adverse change, event, development, or effect arising from or relating to
changes or proposed changes in Law or other binding directives issued

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by any Governmental or Regulatory Authority; (e) any adverse change, effect, event,
occurrence, state of facts or development resulting from or relating to compliance with the terms
of, or the taking of any action required by, this Agreement; or (f) any adverse change, effect,
event, occurrence, state of facts or development arising from or relating to the commencement,
continuation or escalation of a war, material armed hostilities or other material international or
national calamity or act of terrorism directly or indirectly involving the United States of
America.

     “NASDAQ” shall mean The Nasdaq Global Market.

     “Organizational Documents” means with respect to any Person, (a) the articles or certificate
of incorporation and the by-laws of a corporation; (b) any charter or similar document adopted or
filed in connection with the creation, formation, or organization of a Person (e.g., a certificate
of formation, articles of organization or certificate of limited partnership), and any agreement
governing such Person (e.g., a limited liability company agreement, operating agreement or
partnership agreement); and (c) any amendment to any of the foregoing.

     “Parties” means the parties hereto.

     “Permitted Liens” means (a) those encumbrances to title listed on Section 3.11 of the Emerald
Disclosure Schedule, (b) mechanic’s, materialmen’s, landlord’s and similar liens, (c) liens arising
under worker’s compensation, unemployment insurance, social security, retirement and similar
legislation, (d) liens on goods in transit incurred pursuant to documentary letters of credit, in
each case arising in the ordinary course of business, (e) liens for Taxes not yet due and payable,
(f) liens for Taxes which are being contested in good faith and by appropriate proceedings, (g)
liens relating to capitalized lease financings or purchase money financings that have been entered
into in the ordinary course of business, (h) liens arising solely by action of the WCA Parties, (i)
with respect to each parcel of real property owned by any of the Emerald Companies (1) minor
imperfections of title, if any, none of which materially detracts from the value or impairs the use
of such parcel of real property or impairs the operations of the applicable Emerald Companies
thereon, (2) zoning laws and other land use restrictions that do not impair the present or
anticipated use of such parcel of real property, and (3) matters disclosed on any of the title
insurance policies, commitments, opinions, abstracts, and surveys previously delivered to the WCA
Parties and (j) liens which do not materially and adversely impair the use or value of the assets
of the Emerald Companies.

     “Person” means an individual, corporation, partnership, association, joint stock company,
limited liability company, Governmental or Regulatory Authority, trust, unincorporated organization
or other legal entity.

     “Polluting Substances” means (a) any material, waste or substance designated, classified,
regulated or included within the statutory and/or regulatory definitions of “hazardous substances,”
“radioactive material,” “hazardous waste,” “extremely hazardous substance,” “hazardous chemical,”
“regulated substance,” “contaminant,” “pollutant,” “hazardous material,” or “toxic substance” under
any Environmental Law; (b) any material, waste or substance which is or contains hydrocarbons,
petroleum, oil or a fraction thereof; (c) radioactive material (including regulated naturally
occurring radioactive materials); (d) solid waste, as defined under

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RCRA other than which is disposed of in compliance with applicable Environmental Laws, that
poses an imminent and substantial endangerment to health or the environment; (e) such other
substances, materials, or wastes that become classified or regulated as hazardous or toxic under
any federal, state or local law or regulation from time to time; and (f) methane to the extent it
is not being managed in accordance with applicable Law. To the extent that the laws or regulations
of any applicable state or local jurisdiction establish a meaning for any term defined herein
through reference to federal Environmental Laws which is broader than the meaning under such
federal Environmental Laws, such broader meaning shall apply.

     “Prepaid Item Amount” means the aggregate amounts paid by the Emerald Companies prior to
Closing for expenses of the Emerald Companies (other than with respect to the Gulf Coast Business)
to be incurred after the Effective Time.

     “Proceeding” means any action, suit, claim, investigation, review or other judicial,
administrative, arbitral, investigatory or other proceeding. “Proceeding” includes all
post-judgment actions (including but not limited to appeals and actions for collection), which any
such post-judgment action shall be considered a “Proceeding” until such time as a final,
non-appealable determination has been issued with respect to such post-judgment action. If any
Proceeding is settled, such Proceeding shall be deemed final upon earlier of (i) the completion of
all obligations of all parties to such settlement or (ii) the execution and delivery of a
settlement agreement among all parties to such settlement.

     “Release” means any unpermitted release, spill, emission, leaking, pumping, pouring, dumping
emptying, injection, disposal, discharge, leaching or migration of any Polluting Substance.

     “Remediation” means any action necessary to (i) correct noncompliance with the requirements of
Environmental Law, or (ii) to abate Releases of Polluting Substances in violation of, or which
would cause liability under any Environmental Law including (a) services of professionals; or, (b)
the removal and Disposal, in situ remediation, reclamation, cleanup, decontamination or containment
(if containment is practical under the circumstances and is permissible within requirements of
Environmental Law), investigation, or monitoring of any and all Polluting Substances at or on any
Business Facility of any Company.

     “Subsidiary” means, when used with respect to any party, any corporation, partnership or other
organization, whether incorporated or unincorporated, which such party owns more than fifty percent
(50%) of the aggregate voting power (or of any other form of voting equity interests in the case of
a Person that is not a corporation) which is beneficially owned by that party directly or
indirectly through one or more other Persons.

     “Tax” means any tax of any kind, however denominated, including any interest, penalties, fines
or other additions to tax that may become payable in respect thereof or in respect of a failure to
comply with any requirement relating to any Tax Return, imposed by any federal, territorial, state,
local or foreign Governmental or Regulatory Authority, including all income, gross income, gross
receipts, profits, goods and services, social security, health, old age security, federal pension
plan, state pension plan, sales and use, ad valorem, excise, custom, franchise, business license,
property, occupation, real property gains, payroll and employee withholding,

56

 

unemployment or employment insurance, real and personal property, stamp, environmental,
transfer, workers’ compensation, payroll, severance, alternative minimum, windfall, and capital
gains taxes, premiums, surtaxes, charges, levies, assessments, reassessments, and other obligations
of the same or a similar nature to any of the foregoing whether or not shown on a Tax Return,
whether computed on a separate or consolidated, unitary or combined basis or in any other manner,
whether disputed or not and including any obligation to indemnify or otherwise assume or succeed to
the Tax liability of any other Person.

     “Tax Claim” means any Tax owed, due or payable by any Emerald Party for any Tax period (or a
portion thereof) ending on or before the Closing Date.

     “Tax Return” means all tax returns, declarations, reports, estimates, information returns and
statements or any other schedule or attachment thereto and including any amendment thereof required
to be filed with any Taxing Authority, or provided to any partner, stockholder, joint venturer or
member under federal, state, local or foreign Laws (including reports with respect to backup
withholding and payments to Persons other than Taxing Authorities), and annual tax returns or
information returns on behalf of employee benefit plans sponsored by EWS Holdings or any of its
respective ERISA Affiliates.

     “Taxing Authority” means any Governmental or Regulatory Authority responsible for the
imposition, assessment, enforcement or collection of any Tax.

     “Third Party Claim” means any claim, issuance of any order or the commencement of any
Proceeding by any Person who is not a Party to this Agreement or an Affiliate of a Party.

     “Title Claims” means any claims, liabilities, causes of action (arising under common law,
contract or statute), suits, judgments, demands, Liens (other than Permitted Liens), governmental
or private investigations arising due to any Lien (other than a Permitted Lien) on any property or
assets owned by any Emerald Company.

     “Trading Day” means a full trading day (beginning at 9:30 a.m., New York City time, and ending
at 4:00 p.m., New York City time) on the NASDAQ.

     “Treasury Regulations” means the regulations promulgated by the United States Treasury
Department under the Code.

ARTICLE X

10. General.

     10.1 Costs. The Parties shall pay their respective expenses (including, without
limitation, the fees, disbursements and expenses of their attorneys and accountants) in connection
with the negotiation and preparation of this Agreement and the consummation of the transactions
contemplated hereby.

     10.2 Entire Agreement. This Agreement, together with all exhibits and schedules hereto, each of which are hereby
incorporated by this reference and made a part hereof, embodies the entire agreement and
understanding between the Parties hereto relating to the

57

 

subject matter hereof and supersedes any
prior agreements and understandings relating to the subject matter hereof.

     10.3 Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which collectively shall constitute one and the
same instrument representing this Agreement between the Parties hereto, and it shall not be
necessary for the proof of this Agreement that any Party produce or account for more than one such
counterpart. Facsimile signatures shall be given the same force and effect as original signatures
and shall be treated for all purposes and intents as original signatures.

     10.4 Notices. All notices, requests, demands and other communications under this
Agreement shall be in writing and shall be deemed to have been duly given (i) on the day of service
if served personally on the Party to whom notice is to be given, (ii) on the day of transmission if
sent via facsimile transmission to the facsimile number given below, (iii) on the day after
delivery to an overnight courier service, or (iv) on the fifth day after mailing, if mailed to the
Party to whom notice is to be given, by first class mail, registered or certified, postage prepaid
and properly addressed, to the Party as follows:

	 	 	 	 
	 	 	 
	 	If to the WCA Parties:

	 	WCA Waste Corporation

One Riverway, Suite 1400

Houston, Texas 77056

Attention: President

Facsimile: 713-292-2455
	 	 
	 	 
	 	Copy to:

	 	Andrews Kurth LLP

600 Travis, Suite 4200

Houston, Texas 77002

Attention: Jeff Dodd

Facsimile: 713-238-7368
	 	 
	 	 
	 	If to EWS Holdings:

	 	c/o BNY Mellon-Alcentra Mezzanine Partners

200 Park Avenue, 7th Floor

New York, New York 10166

Attention: Justin Kaplan

Facsimile: (212) 922-8529
	 	 
	 	 
	 	Copy to:

	 	Katten Muchin Rosenman LLP

525 W. Monroe Street

Chicago, Illinois 60661

Attention: Michael W. Jones

Facsimile: (312) 577-4492

     Any Party may change its address for the purpose of this Section 10.4 by giving the
other Party written notice of its new address in the manner set forth above.

     10.5 Modification or Waiver. This Agreement may be amended, modified or superseded,
and any of the terms, covenants, representations, warranties or conditions hereof

58

 

may be waived,
but only by a written instrument executed by the Parties hereto. No waiver of any nature, in any
one or more instances, shall be deemed to be or construed as a further or continued waiver of any
condition or any breach of any other term, covenant, representation or warranty in this Agreement.

     10.6 Binding Effect and Assignment. Except as otherwise provided in this Agreement,
no Party hereto shall assign this Agreement or any rights or obligations hereunder without the
prior written consent of the other Party hereto and any such attempted assignment without such
prior written consent shall be void and of no force and effect. This Agreement shall inure to the
benefit of and shall be binding upon the successors and permitted assigns of the Parties hereto.

     10.7 Governing Law; Venue; Waiver of Jury Trial.

          (a) THIS AGREEMENT, AND ALL QUESTIONS RELATING TO ITS VALIDITY, INTERPRETATION, PERFORMANCE
AND ENFORCEMENT (INCLUDING, WITHOUT LIMITATION, PROVISIONS CONCERNING LIMITATIONS OF ACTION), SHALL
BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE (EXCLUSIVE OF THE
CONFLICT OF LAW PROVISIONS THEREOF) APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY
WITHIN SUCH STATE.

          (b) THE PARTIES (i) AGREE AND CONSENT TO THE JURISDICTION OF THE COURT OF CHANCERY OF THE
STATE OF DELAWARE; (ii) ACKNOWLEDGE THAT SUCH COURT SHALL CONSTITUTE PROPER AND CONVENIENT FORUM
FOR THE RESOLUTION OF ANY ACTIONS AMONG THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF; AND
(iii) AGREE THAT SUCH COURT SHALL BE THE SOLE AND EXCLUSIVE FORUM FOR THE RESOLUTION OF ANY ACTIONS
AMONG THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF.

          (c) THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED
BY LAW, TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY
COUNTERCLAIM THEREIN.

     10.8 Section Headings. The section headings contained in this Agreement are inserted for convenience of reference
only and shall not affect the meaning or interpretation of this Agreement.

     10.9 Severability. If for any reason whatsoever, any one or more of the provisions
hereof shall be held or deemed to be illegal, inoperative, unenforceable or invalid as applied to
any particular case or in all cases, such circumstances shall not have the effect of rendering such
provision illegal, inoperative, unenforceable or invalid in any other case or of rendering any of
the other provisions hereof illegal, inoperative, unenforceable or invalid. Furthermore, in lieu
of each such illegal, invalid, unenforceable or inoperative provision, there shall be added
automatically, as part of this Agreement, a provision similar in terms of such illegal, invalid,

59

 

unenforceable or inoperative provision as may be possible and as shall be legal, valid, enforceable
and operative.

     10.10 Drafting. The Parties acknowledge and confirm that they and/or their respective
attorneys have participated jointly in the review and revision of this Agreement and that it has
not been written solely by any one Party or counsel for any one Party. The Parties therefore
stipulate and agree that the rule of construction to the effect that any ambiguities are to be or
may be resolved against the drafting Party shall not be employed in the interpretation of this
Agreement to favor any Party against another.

     10.11 References. The use of the words “hereof,” “herein,” “hereunder,” “herewith,”
“hereto,” “hereby,” and words of similar import shall refer to this entire Agreement, and not to
any particular article, section, subsection, clause, or paragraph of this Agreement, unless the
context clearly indicates otherwise.

     10.12 Calendar Days, Weeks, Months and Quarters. Unless otherwise specified herein,
any reference to “day,” “week,” “month” or “quarter” herein shall mean a calendar day, week, month
or quarter.

     10.13 Gender; Plural and Singular. Unless the context clearly indicates otherwise,
the singular shall include the plural and vice versa. Whenever the masculine, feminine or neuter
gender is used inappropriately in this Agreement, this Agreement shall be read as if the
appropriate gender had been used.

     10.14 Cumulative Rights. All rights and remedies specified herein are cumulative and
are in addition to, not in limitation of, any rights or remedies the Parties may have by statute,
at law, in equity, or otherwise, and all such rights and remedies may be exercised singularly or
concurrently.

     10.15 No Implied Covenants. Each Party, against the other, waives and relinquishes any right to assert, either as a
claim or as a defense, that any other Party is bound to perform or liable for the nonperformance of
any implied covenant or implied duty or implied obligation.

     10.16 Indirect Action. Where any provision hereof refers to action to be taken by any
Person or Party, or which such Person or Party is prohibited from taking, such provision shall be
applicable whether the action in question is taken directly or indirectly by such Person or Party.

     10.17 Attorneys’ Fees. The prevailing Party in any dispute between the Parties
arising out of the interpretation, application or enforcement of any provision hereof shall be
entitled to recover all of its reasonable attorneys’ fees and costs whether suit be filed or not,
including without limitation costs and attorneys’ fees related to or arising out of any trial or
appellate proceedings.

     10.18 Time of the Essence. With regard to all dates and time periods set forth or
referred to in this Agreement, time is of the essence.

60

 

     10.19 No Third-Party Beneficiaries. This Agreement shall not confer any rights or
remedies upon any person other than the Parties, the WCA Indemnified Parties, the Emerald
Indemnified Parties and their respective successors and permitted assigns.

     10.20 Specific Performance. The Parties hereby acknowledge and agree that the failure
of any of the WCA Parties, on the one hand, or any of the Emerald Parties, on the other hand, as
applicable, to perform its agreements and covenants hereunder, including its failure to take all
actions as are necessary on its part to consummate the Closing, will cause irreparable injury to
the other Party, for which damages, even if available, will not be an adequate remedy.
Accordingly, each Party hereby consents to the issuance of injunctive relief by an court of
competent jurisdiction to compel performance of any of the WCA Party’s and/or any of the Emerald
Party’s obligations, as applicable, and to the granting by any court of the remedy of specific
performance of its obligations hereunder.

     10.21 MacLand Companies; WCA Mississippi. The MacLand Companies and WCA Mississippi
are Parties hereto only for the purpose of acknowledging and agreeing to the amendment of the
Original Agreement, and, for the avoidance of doubt, shall not be liable for anything arising out
of or relating to the representations, warranties, covenants or other obligations of the Emerald
Parties or the WCA Parties under or relating to this Agreement.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

61

 

     IN WITNESS WHEREOF, the undersigned have executed this Amended and Restated Equity Interest
Purchase Agreement as of the date first above stated.

	 	 	 	 	 
	 	WCA PARTIES:

WCA WASTE CORPORATION,

a Delaware corporation

 	 
	 	By:  	/s/ Jerome M. Kruszka
 	 
	 	 	Name:  	Jerome M. Kruszka 	 
	 	 	Title:  	President & Chief Operating Officer 	 
	 
	 	WCA WASTE SYSTEMS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Jerome M. Kruszka
 	 
	 	 	Name:  	Jerome M. Kruszka 	 
	 	 	Title:  	President 	 
	 
	 	WCA OF MISSISSIPPI, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Jerome M. Kruszka
 	 
	 	 	Name:  	Jerome M. Kruszka 	 
	 	 	Title:  	President 	 
	 

Signature Page to

Amended and Restated Equity Interest Purchase Agreement

 

 

	 	 	 	 	 
	 	EMERALD PARTIES:

EWS HOLDINGS, LLC,

a Delaware limited liability company

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 
	 	WRH GAINESVILLE, LLC,

a Florida limited liability company

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 
	 	WRH GAINESVILLE HOLDINGS, LLC,

a Florida limited liability company

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 
	 	WRH ORANGE CITY, LLC,

a Florida limited liability company

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 
	 	EWS CENTRAL FLORIDA HAULING, LLC,

a Florida limited liability company

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 

Signature Page to

Amended and Restated Equity Interest Purchase Agreement

 

 

	 	 	 	 	 
	 	EMERALD WASTE SERVICES, LLC,

a Florida limited liability company

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 
	 	MACLAND HOLDINGS, INC.,

a Delaware corporation

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 
	 	MACLAND DISPOSAL CENTER, INC.,

a Mississippi corporation

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 
	 	MACLAND DISPOSAL INC. II,

a Mississippi corporation

 	 
	 	By:  	/s/ Justin Kaplan
 	 
	 	 	Name:  	Justin Kaplan 	 
	 	 	Title:  	Vice President & Secretary 	 
	 

Signature Page to

Amended and Restated Equity Interest Purchase Agreement

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