Document:

exv4w2

Exhibit 4.2

THE SECURITIES REPRESENTED BY THIS INSTRUMENT AND THE SECURITIES ISSUABLE UPON EXERCISE
THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS
OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO A
REGISTRATION STATEMENT RELATING THERETO IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

WARRANTS TO PURCHASE COMMON STOCK OF

XPO LOGISTICS, INC.

	 	 	 

	No. [•]

	 	Certificate for [INSERT HOLDER ALLOCATION] Warrants

     This Warrant Certificate (“Warrant Certificate”) certifies that [INSERT NAME OF
HOLDER], or registered assigns, is the registered holder of the number of Warrants set forth above.
Each warrant represented hereby (a “Warrant”) entitles the holder thereof (the
“Holder”), subject to the provisions contained herein, to purchase from XPO Logistics,
Inc., a Delaware corporation (the “Company”), one share of the Company’s common stock, par
value $0.001 per share (“Company Common Stock”), subject to adjustment upon the occurrence
of certain events specified herein, at the exercise price of $7.00 per share (the “Exercise
Price”), subject to adjustment upon the occurrence of certain events specified herein.

     This Warrant Certificate is issued under and in accordance with the Investment Agreement,
dated as of June 13, 2011 (the “Investment Agreement”), by and among Jacobs Private Equity,
LLC, the other Investors party thereto and the Company, and is subject to the terms and provisions
contained in the Investment Agreement. Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to such terms in the Investment Agreement.

 

 

ARTICLE I

Exercise Price; Exercise of Warrants and Expiration of Warrants

          SECTION 1.01. Exercise Price. This Warrant Certificate shall entitle the Holder
hereof, subject to the provisions of this Warrant Certificate, to purchase one share of Company
Common Stock for each Warrant represented hereby, at the Exercise Price, in each case subject to
all adjustments made on or prior to the date of exercise thereof as herein provided.

          SECTION 1.02. Exercise of Warrants. (a) The Warrants shall be exercisable in whole
or in part from time to time on any Business Day beginning on the Issuance Date and ending on the
Expiration Date in the manner provided for herein.

          SECTION 1.03. Expiration of Warrants. Any unexercised Warrants shall expire and the
rights of the Holder of such Warrants to purchase Company Common Stock shall terminate at the close
of business on the Expiration Date.

          SECTION 1.04. Method of Exercise; Payment of Exercise Price. (a) In order to
exercise a Warrant, the Holder hereof must (i) surrender this Warrant Certificate to the Company,
with the Exercise Subscription Form attached hereto as Annex I duly completed and executed, at any
time during usual business hours at its principal place of business or the offices of the Transfer
Agent, and (ii) pay in full the Exercise Price then in effect for the shares of Company Common
Stock as to which this Warrant Certificate is submitted for exercise in the manner provided in
paragraph (b) of this Section 1.04.

          (b) Simultaneously with the exercise of each Warrant, payment in full of the Exercise Price
shall be delivered to the Company. Such payment shall be made in cash, by bank wire transfer in
immediately available funds to an account designated by the Company.

          (c) If fewer than all the Warrants represented by this Warrant Certificate are surrendered,
this Warrant Certificate shall be surrendered and a new Warrant Certificate of the same tenor and
for the number of Warrants that were not surrendered shall promptly be executed and delivered to
the Person or Persons as may be directed in writing by the Holder (subject to the terms hereof),
and the Company shall register the new Warrant Certificate in the name of such Person or Persons.
Any new Warrant Certificate shall be executed on behalf of the Company by its President, Chief
Executive Officer, Chief Financial Officer or Secretary, either manually or by facsimile signature
printed thereon. In case any Officer of the Company whose signature shall have been placed upon
any Warrant Certificate shall cease to be such Officer of the Company before issue and delivery
thereof, such Warrant Certificate may, nevertheless, be issued and delivered with the same force
and effect as though such person had not ceased to be such Officer of the Company.

          (d) Upon surrender of this Warrant Certificate in accordance with the foregoing provisions,
the Company shall instruct the Transfer Agent to transfer to the

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Holder appropriate evidence of ownership of any shares of Company Common Stock or other
securities or property (including cash) to which the Holder is entitled, registered or otherwise
placed in, or payable to the order of, such name or names as may be directed in writing by the
Holder (subject to the terms hereof), and shall deliver such evidence of ownership and any other
securities or property (including cash) to the Person or Persons entitled to receive the same,
together with an amount in cash in lieu of any fraction of a share as provided in Section 2.03.
Upon payment of the Exercise Price therefor, the Holder (or its designee) shall be deemed to own
and have all of the rights associated with any Company Common Stock or other securities or property
(including cash) to which it is entitled pursuant to this Warrant Certificate upon the surrender of
this Warrant Certificate in accordance with the terms of this Warrant Certificate.

          SECTION 1.05. Compliance with the Securities Act. (a) No Warrants or shares of
Company Common Stock issued upon exercise thereof may be sold, transferred or otherwise disposed of
(any such sale, transfer or other disposition, a “Sale”), except in compliance with the
registration requirements of the Securities Act and any other applicable securities laws or
pursuant to an exemption from registration under the Securities Act and any other applicable
securities laws, or in a transaction not subject to such laws. The Warrants and the shares of
Company Common Stock issuable upon exercise of the Warrants will have the benefit of certain
registration rights under the Securities Act pursuant to a Registration Rights Agreement entered
into by the Company on the Issuance Date.

          (b) Shares of Company Common Stock issued upon exercise of Warrants under a Warrant
Certificate while such Warrant Certificate bears the legend set forth on the first page of this
Warrant Certificate as of the Issuance Date, shall, subject to Section 6.04, be in global form and
bear the following legend:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO A REGISTRATION STATEMENT RELATING THERETO IN
EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER SUCH ACT OR SUCH LAWS.

ARTICLE II

Adjustments; Changes upon Certain Other Transactions

          SECTION 2.01. Anti-dilution Adjustments. (a) The number of shares issuable upon
exercise of the Warrants and the Exercise Price shall be subject to the following adjustments from
time to time:

     (i) Stock Dividends. In case the Company shall pay or make a dividend
or other distribution on the Company Common Stock in

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Company Common Stock, the number of shares of Company Common Stock issuable
upon exercise of each Warrant, as in effect at the opening of business on the day
following the date fixed for the determination of stockholders of the Company
entitled to receive such dividend or distribution, shall be adjusted so that the
Holder shall thereafter be entitled to receive the number of shares of Company
Common Stock that the Holder would have owned or have been entitled to receive
after the happening of the dividend or other distribution, had such Warrant been
exercised immediately prior to the date fixed for such determination; and, in the
event of any such adjustment, the Exercise Price, as in effect at the opening of
business on the day following the date fixed for the determination of stockholders
of the Company entitled to receive such dividend or other distribution, shall be
adjusted by multiplying such Exercise Price by a fraction of which the numerator
shall be the number of shares of Company Common Stock outstanding at the close of
business on the date fixed for such determination and the denominator shall be the
sum of such number of shares and the total number of shares constituting such
dividend or other distribution. Such adjustments shall become effective
immediately after the opening of business on the day following the date fixed for
such determination.

     (ii) Stock Purchase Rights. In case the Company shall issue to all
holders of Company Common Stock options, warrants or other rights entitling them to
subscribe for or purchase shares of Company Common Stock for a period expiring
within 60 days from the date of issuance of such options, warrants or other rights
at a price per share of Company Common Stock less than the Market Value on the date
fixed for the determination of stockholders of the Company entitled to receive such
options, warrants or other rights (other than pursuant to a dividend reinvestment,
share purchase or similar plan), the number of shares of Company Common Stock
issuable upon the exercise of each Warrant shall be adjusted by multiplying the
number of shares of Company Common Stock issuable upon exercise of each Warrant, as
in effect at the opening of business on the day following the date fixed for such
determination, by a fraction, the numerator of which shall be the number of shares
of Company Common Stock outstanding at the close of business on the date fixed for
such determination plus the number of shares of Company Common Stock so offered for
subscription or purchase, either directly or indirectly, and the denominator of
which shall be the number of shares of Company Common Stock outstanding at the
close of business on the date fixed for such determination plus the number of
shares of Company Common Stock which the aggregate consideration expected to be
received by the Company upon the exercise, conversion or exchange of such options,
warrants or other rights (as determined in good faith by the Board, whose
determination shall be conclusive and described in a Board Resolution) would
purchase at such Market Value; and, in the event of any such adjustment, the
Exercise Price in effect at the opening of business on

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the day following the date fixed for such determination shall be adjusted by
multiplying such Exercise Price by a fraction, the numerator of which shall be the
number of shares of Company Common Stock outstanding at the close of business on
the date fixed for such determination plus the number of shares of Company Common
Stock which the aggregate consideration expected to be received by the Company upon
the exercise, conversion or exchange of such options, warrants or other rights (as
determined in good faith by the Board, whose determination shall be conclusive and
described in a Board Resolution) would purchase at such Market Value and the
denominator of which shall be the number of shares of Company Common Stock
outstanding at the close of business on the date fixed for such determination plus
the number of shares of Company Common Stock so offered for subscription or
purchase, either directly or indirectly. Such adjustments shall become effective
immediately after the opening of business on the day following the date fixed for
such determination; provided, however, that no such adjustments
shall be made if the Holder would be entitled to receive such options, warrants or
other rights upon exercise at any time of the Warrants; provided,
further, however, that if any of the foregoing options, warrants or
other rights are only exercisable upon the occurrence of a Triggering Event, then
no such adjustments shall be made until such Triggering Event occurs.

     (iii) Stock Splits, Reverse Splits and Combinations. In case
outstanding shares of Company Common Stock shall be subdivided, split or
reclassified into a greater number of shares of Company Common Stock, then the
number of shares of Company Common Stock issuable upon exercise of each Warrant in
effect at the opening of business on the day following the date upon which such
subdivision, split or reclassification becomes effective shall be adjusted so that
the Holder shall thereafter be entitled to receive the number of shares of Company
Common Stock that the Holder would have owned or would have been entitled to
receive had such Warrant been exercised immediately prior to such subdivision,
split or reclassification becoming effective; and, in the event of any such
adjustment, the Exercise Price in effect at the opening of business on the day
following the date upon which such subdivision, split or reclassification becomes
effective shall be proportionately reduced. Conversely, in case outstanding shares
of Company Common Stock shall be combined or reclassified into a smaller number of
shares of Company Common Stock, then the number of shares of Company Common Stock
issuable upon exercise of each Warrant in effect at the opening of business on the
day following the date upon which such combination or reclassification becomes
effective shall be adjusted so that the Holder shall thereafter be entitled to
receive the number of shares of Company Common Stock that the Holder would have
owned or would have been entitled to receive had such Warrant been exercised
immediately prior to such combination or reclassification becoming effective; and,
in the event of any such adjustment, the Exercise Price in effect at the opening of

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business on the day following the date upon which such combination or
reclassification becomes effective shall be proportionately increased. Such
adjustments shall become effective immediately after the opening of business on the
day following the date upon which such subdivision, split, reclassification or
combination becomes effective.

     (iv) Debt, Asset or Security Distributions. (A) In case the Company
shall, by dividend or otherwise, distribute to all holders of Company Common Stock
evidences of its indebtedness, assets or securities (but excluding any dividend or
distribution of options, warrants or other rights referred to in paragraph (ii) of
this Section 2.01(a), any dividend or distribution paid exclusively in cash, any
dividend or distribution of shares of Capital Stock of any class or series, or
similar equity interests, of or relating to a Subsidiary or other business unit in
the case of a Spin-off referred to in the next subparagraph, or any dividend or
distribution referred to in paragraph (i) of this Section 2.01(a)), then the number
of shares of Company Common Stock issuable upon the exercise of each Warrant
immediately prior to the close of business on the date fixed for the determination
of stockholders of the Company entitled to receive such distribution shall be
increased to a number determined by multiplying the number of shares of Company
Common Stock issuable upon the exercise of such Warrant immediately prior to the
date fixed for such determination by a fraction, the numerator of which shall be
the Market Value on the date fixed for such determination plus the fair market
value (as determined in good faith by the Board, whose determination shall be
conclusive and described in a Board Resolution) of the portion of the assets or
evidences of indebtedness so distributed applicable to one share of Company Common
Stock and the denominator of which shall be the Market Value on the date fixed for
such determination; and, in the event of any such adjustment, the Exercise Price
shall be reduced by multiplying the Exercise Price in effect immediately prior to
the close of business on the date fixed for the determination of stockholders of
the Company entitled to receive such distribution by a fraction, the numerator of
which shall be the Market Value on the date fixed for such determination and the
denominator of which shall be such Market Value plus the fair market value (as
determined in good faith by the Board, whose determination shall be conclusive and
described in a Board Resolution) of the portion of the assets or evidences of
indebtedness so distributed applicable to one share of Company Common Stock. Such
adjustments shall become effective immediately prior to the opening of business on
the day following the date fixed for the determination of stockholders of the
Company entitled to receive such distribution. In any case in which this
subparagraph (iv)(A) is applicable, subparagraph (iv)(B) of this Section
2.01(a)(iv) shall not be applicable.

     (B) In the case of a Spin-off, the number of shares of Company Common
Stock issuable upon the exercise of each Warrant

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immediately prior to the close of business on the date fixed for
determination of stockholders of the Company entitled to receive such
distribution shall be increased to a number determined by multiplying the
number of shares of Company Common Stock issuable upon the exercise of such
Warrant immediately before the close of business on such date by a fraction,
the numerator of which shall be the Market Value plus the fair market value (as
determined in good faith by the Board, whose determination shall be conclusive
and described in a Board Resolution) of the portion of those shares of Capital
Stock or similar equity interests so distributed applicable to one share of
Company Common Stock, and the denominator of which shall be the Market Value;
and, in the event of any such adjustment, the Exercise Price in effect
immediately prior to the close of business on the date fixed for determination
of stockholders of the Company entitled to receive such distribution shall be
reduced by multiplying the Exercise Price by a fraction, the numerator of which
shall be the Market Value and the denominator of which shall be the Market
Value plus the fair market value (as determined in good faith by the Board,
whose determination shall be conclusive and described in a Board Resolution) of
the portion of those shares of Capital Stock or similar equity interests so
distributed applicable to one share of Company Common Stock. Any adjustments
under this subparagraph (iv)(B) will occur on the date that is the earlier of
(1) the tenth Trading Day from, and including, the effective date of the
Spin-off and (2) the date of the Initial Public Offering of the securities
being distributed in the Spin-off, if that Initial Public Offering is effected
simultaneously with the Spin-off.

     (v) Tender Offers. In the case that a tender or exchange offer made
by the Company or any Subsidiary of the Company for all or any portion of the
Company Common Stock shall expire and such tender or exchange offer (as amended
through the expiration thereof) shall require the payment to stockholders of the
Company (based on the acceptance (up to any maximum specified in the terms of the
tender or exchange offer) of Purchased Shares) of aggregate consideration having a
fair market value (as determined in good faith by the Board, whose determination
shall be conclusive and described in a Board Resolution) per share of Company
Common Stock that exceeds the Closing Sale Price of the Company Common Stock on the
Trading Day next succeeding the last date on which tenders or exchanges may be made
pursuant to such tender or exchange offer, then, immediately prior to the opening
of business on the day after the date of the last time (the “Expiration
Time”) tenders or exchanges could have been made pursuant to such tender or
exchange offer (as amended through the expiration thereof), the number of shares of
Company Common Stock issuable upon the exercise of each Warrant immediately prior
to the close of business on the date of the Expiration Time shall be increased to a
number determined by multiplying the

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number of shares of Company Common Stock issuable upon exercise of each
Warrant immediately prior to the close of business on the date of the Expiration
Time by a fraction (A) the numerator of which shall be equal to (x) the product of
(I) the Market Value on the date of the Expiration Time and (II) the number of
shares of Company Common Stock outstanding (including any tendered or exchanged
shares) on the date of the Expiration Time less the number of all shares validly
tendered or exchanged, not withdrawn and accepted for payment on the date of the
Expiration Time (such validly tendered or exchanged shares, up to any such maximum,
being referred to as the “Purchased Shares”) plus (y) the amount of cash
plus the fair market value (determined as aforesaid) of the aggregate consideration
payable to stockholders of the Company pursuant to the tender or exchange offer
(assuming the acceptance, up to any maximum specified in the terms of the tender or
exchange offer, of Purchased Shares), and (B) the denominator of which shall be
equal to the product of (x) the Market Value on the date of the Expiration Time and
(y) the number of shares of Company Common Stock outstanding (including any
tendered or exchanged shares) on the date of the Expiration Time; and, in the event
of any such adjustment, the Exercise Price shall be reduced by multiplying the
Exercise Price immediately prior to the close of business on the date of the
Expiration Time by a fraction (A) the numerator of which shall be equal to the
product of (x) the Market Value on the date of the Expiration Time and (y) the
number of shares of Company Common Stock outstanding (including any tendered or
exchanged shares) on the date of the Expiration Time, and (B) the denominator of
which shall be equal to (x) the product of (I) the Market Value on the date of the
Expiration Time and (II) the number of shares of Company Common Stock outstanding
(including any tendered or exchanged shares) on the date of the Expiration Time
less the number of Purchased Shares plus (y) the amount of cash plus the fair
market value (determined as aforesaid) of the aggregate consideration payable to
stockholders of the Company pursuant to the tender or exchange offer (assuming the
acceptance, up to any maximum specified in the terms of the tender or exchange
offer, of Purchased Shares).

          (b) De Minimis Adjustments. Notwithstanding anything herein to the contrary, no
adjustment under this Section 2.01 need be made to the number of shares issuable upon exercise of a
Warrant or the Exercise Price unless such adjustment would require an increase or decrease of at
least 1.0% of the number of shares issuable upon exercise of the Warrants or the Exercise Price
immediately prior to the making of such adjustment. Any lesser adjustment shall be carried forward
and shall be made at the time of and together with the next subsequent adjustment, if any, which,
together with any adjustment or adjustments so carried forward, shall result in an increase or
decrease of at least 1.0% of the number of shares issuable upon exercise of a Warrant or the
Exercise Price immediately prior to the making of such adjustment. No adjustment to the Exercise
Price under this Section 2.01 shall be made if such adjustment will result in an Exercise Price
that is less than the par value of the Company Common Stock. All adjustments to

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the number of shares issuable upon exercise of the Warrants or the Exercise Price shall be
calculated to the nearest 1/10,000th of a share of Company Common Stock (or if there is not a
nearest 1/10,000th of a share to the next lower 1/10,000th of a share) or the nearest $0.0001 (or
if there is not a nearest $0.0001 to the next lower $0.0001), as the case may be.

          (c) Tax-Related Adjustments. The Company may make such increases in the number of
shares issuable upon exercise of the Warrants or reductions in the Exercise Price, in addition to
those required by this Section 2.01, as the Board considers advisable in order to avoid or diminish
any income tax to any holders of shares of Company Common Stock resulting from any dividend or
distribution of stock or issuance of rights or warrants to purchase or subscribe for stock or from
any event treated as such for income tax purposes. In the event the Company elects to make such an
increase in the number of shares issuable upon exercise of the Warrants or such a reduction in the
Exercise Price, the Company will comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder, if and to the extent that such laws and
regulations are applicable in connection with the increase in the number of shares issuable upon
exercise of the Warrants or the reduction in the Exercise Price.

          (d) Stockholder Rights Plans. Upon exercise of the Warrants, to the extent that the
Holder receives Company Common Stock, the Holder shall receive, in addition to the shares of
Company Common Stock and any cash for fractional shares in accordance with Section 2.03, if any,
the rights issued under any future stockholder rights plan the Company may establish whether or not
such rights are separated from the Company Common Stock prior to exercise. A distribution of
rights pursuant to any stockholder rights plan will not result in an adjustment to the number of
shares issuable upon exercise of the Warrants or the Exercise Price pursuant to Section 2.01(a)(ii)
or 2.01(a)(iv), provided that the Company has provided for the Holder to receive such
rights upon exercise.

          (e) Reversal of Adjustment. If the Company shall take a record of the holders of
Company Common Stock for the purpose of entitling them to receive a dividend or other distribution,
and shall thereafter (and before the dividend or distribution has been paid or delivered to
stockholders) legally abandon its plan to pay or deliver such dividend or distribution, then
thereafter no adjustment in the number of shares issuable upon exercise of the Warrants or the
Exercise Price then in effect shall be required by reason of the taking of such record.

          (f) Exceptions to Adjustment. The applicable number of shares issuable upon exercise
of the Warrants and Exercise Price shall not be adjusted:

     (i) upon the issuance of any shares of Company Common Stock pursuant to any
present or future plan providing for the reinvestment of dividends or interest
payable on the Company’s securities and the investment of additional optional
amounts in shares of Company Common Stock under any such plan;

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     (ii) upon the issuance of any shares of Company Common Stock or options or
rights to purchase those shares pursuant to any present or future employee,
director or consultant benefit plan or program of or assumed by the Company or any
of its Subsidiaries;

     (iii) upon the issuance of any shares of Company Common Stock pursuant to any
option, warrant, right or exercisable, exchangeable or convertible security
outstanding as of the Issue Date;

     (iv) for a change in the par value of the Company Common Stock;

     (v) for accrued and unpaid dividends on the Company’s Series A Convertible
Perpetual Preferred Stock, par value $0.001 per share; or

     (vi) for the 4-for-1 reverse stock split consummated on the Issuance Date
pursuant to the Investment Agreement.

          SECTION 2.02. Recapitalizations, Reclassifications and Changes in the Company’s Stock.
In the event of any reclassification of outstanding shares of Company Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to par value), or any
consolidation or merger of the Company with or into another Person (other than with a Subsidiary of
the Company) or any merger of another Person with or into the Company (other than a consolidation
or merger in which the Company is the resulting or surviving Person and that does not result in any
reclassification or change of outstanding Company Common Stock), or any sale or other disposition
to another Person of all or substantially all of the assets of the Company (computed on a
consolidated basis) (any of the foregoing, a “Transaction”), upon exercise of the Warrants,
the Holder will be entitled to receive the kind and amount of securities (of the Company or another
issuer), cash and other property receivable upon such Transaction by a holder of the number of
shares of Company Common Stock issuable upon exercise of the Warrants immediately prior to such
Transaction, after giving effect to any adjustment event or, in the event holders of Company Common
Stock have the opportunity to elect the form of consideration to be received in any Transaction,
the weighted average of the forms and amounts of consideration received by the holders of Company
Common Stock. In the event that at any time, as a result of an adjustment made pursuant to this
Warrant Certificate, the Holder shall become entitled upon exercise to any securities other than,
or in addition to, shares of Company Common Stock, thereafter the number or amount of such other
securities so receivable upon exercise and the Exercise Price therefor 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 Company Common Stock set forth in this Warrant Certificate.

          SECTION 2.03. Fractional Shares. No fractional shares of Company Common Stock shall
be issued to the Holder upon exercise of any Warrant. In lieu of any fraction of a share of
Company Common Stock that would otherwise be issuable upon exercise of the aggregate number of
Warrants exercised by the Holder, the Holder shall have the right to receive an amount in cash
(computed to the nearest cent) equal to

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the same fraction of the Closing Sale Price on the Trading Day next preceding the date of
exercise.

          SECTION 2.04. Notice of Adjustment. Whenever the number of shares of Company Common
Stock or other stock or property issuable upon the exercise of each Warrant or the Exercise Price
is adjusted, as herein provided, the Company shall (i) compute such adjustment in accordance with
this Article II and prepare and transmit to the Transfer Agent an Officer’s Certificate setting
forth the adjustment, the method of calculation thereof in reasonable detail and the facts
requiring such adjustment and upon which such adjustment is based and (ii) as soon as practicable
following the occurrence of an event that requires an adjustment pursuant to this Article II (or if
the Company is not aware of such occurrence, as soon as practicable after becoming so aware), the
Company or, at the request and expense of the Company, the Transfer Agent shall provide a written
notice to the holders of Warrants (including the Holder) of the occurrence of such event and a
statement setting forth in reasonable detail the method by which the adjustment was determined and
setting forth the adjusted amount.

ARTICLE III

Warrant Transfer Books

          SECTION 3.01. Warrant Transfer Books. (a) The Company shall keep at its principal
place of business a register in which the Company shall provide for the registration of Warrant
Certificates and of any exchanges of Warrant Certificates as herein provided.

          (b) At the option of the Holder, Warrant Certificates may be exchanged at such office and upon
payment of the charges hereinafter provided. Whenever any Warrant Certificates are so surrendered
for exchange, the Company shall execute and deliver the Warrant Certificates that the Holder is
entitled to receive.

          (c) All Warrant Certificates issued upon any registration of transfer or exchange of Warrant
Certificates shall be the valid obligations of the Company, evidencing the same obligations, and
entitled to the same benefits, as the Warrant Certificates surrendered for such registration of
transfer or exchange.

          (d) Every Warrant Certificate surrendered for registration of exchange shall (if so required
by the Company) be duly endorsed, or be accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company, duly executed by the Holder or his attorney duly authorized
in writing.

          (e) No service charge shall be payable by the Holder for any registration of transfer or
exchange of this Warrant Certificate, and the Company shall pay any taxes or other governmental
charges that may be imposed in connection with any registration of exchange of Warrant
Certificates.

          (f) This Warrant Certificate when duly endorsed in blank shall be deemed negotiable and when
this Warrant Certificate shall have been so endorsed, the Holder

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hereof may be treated by the Company and all other Persons dealing therewith as the absolute
owner hereof for any purpose and as the Person entitled to exercise the rights represented hereby.

ARTICLE IV

Voting

          SECTION 4.01. No Voting Rights. Prior to the exercise of the Warrants, the Holder, in
its capacity as such, shall not be entitled to any rights of a stockholder of the Company,
including the right to vote or to consent with respect to any matter.

ARTICLE V

Covenants

          SECTION 5.01. Reservation of Company Common Stock for Issuance on Exercise of
Warrants. The Company covenants that it will at all times reserve and keep available, free
from preemptive rights and solely for the purpose of issue upon exercise of the Warrants as herein
provided, out of its authorized but unissued Company Common Stock, such number of shares of Company
Common Stock as shall then be issuable upon the exercise of all Warrants issuable hereunder and all
other Warrant Certificates. The Company covenants that all shares of Company Common Stock issuable
upon exercise of the Warrants shall, upon such issue, be duly and validly issued and fully paid and
non-assessable, free from preemptive rights and free from all taxes, liens, charges and security
interests with respect to the issuance thereof.

          SECTION 5.02. Notice of Dividends. At any time when the Company declares any dividend
or other distribution on the Company Common Stock, it shall give notice to the holders of all the
then outstanding Warrants (including the Holder) of any such declaration not less than 15 days
prior to the related record date for payment of the dividend or distribution so declared.

          SECTION 5.03. HSR Act Compliance. If the Holder determines that a notification under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations
promulgated thereunder (the “HSR Act”), is required in connection with the exercise of the
Warrants represented by this Warrant Certificate, the Company shall reasonably cooperate with the
Holder by (i) promptly effecting all necessary notifications and other filings under the HSR Act
that are required to be made by the Company and (ii) responding as promptly as reasonably
practicable to all inquiries or requests received from the United States Federal Trade Commission
(the “FTC”), the Department of Justice (the “DOJ”) or any other governmental
authority in connection with such notifications and other filings. For the avoidance of doubt,
nothing in this Section 5.03 shall require that the Company or any of its Subsidiaries commit to
any divestiture, license or hold separate or similar arrangement with respect to the business,
assets or properties of the Company or any of its Subsidiaries. Any such notifications and
responses by the Company will be in full compliance with the

12

 

requirements of the HSR Act. The Company shall, to the extent legally permissible, keep the
Holder reasonably apprised of the status of any communications with, and any inquiries or requests
for additional information from, the FTC, the DOJ or such other governmental authority. The
Company shall pay the filing fees in connection with the above filings, and shall otherwise each
bear its costs and expenses in connection with the preparation of such filings and responses to
inquires or requests.

          SECTION 5.04. Certain Other Events. If any event occurs as to which the provisions of
Article II are not strictly applicable or, if strictly applicable, would not fairly protect the
rights of the holders of the Warrants in accordance with the essential intent and principles of
such provisions, then the Board shall make such adjustments in the application of such provisions,
in accordance with such essential intent and principles, as shall be reasonably necessary, in the
good faith judgment of the Board, to protect such purchase rights as aforesaid.

ARTICLE VI

Miscellaneous

          SECTION 6.01. Tax Matters. (a) The Company shall pay all transfer, stamp and other
similar taxes due with respect to the issuance or delivery of shares of Company Common Stock or
other securities or property upon exercise of the Warrants; provided, however, that
the Company shall not be required to pay any tax that may be payable with respect to any transfer
involved in the issuance or delivery of shares of Company Common Stock or other securities or
property in a name other than that of the Holder, and the Holder shall be responsible for any such
tax.

          SECTION 6.02. Surrender of Warrant Certificate. This Warrant Certificate, if
surrendered for exercise or purchase, shall be promptly canceled by the Company and shall not be
reissued by the Company. The Company shall destroy such canceled Warrant Certificate.

          SECTION 6.03. Mutilated, Destroyed, Lost or Stolen Warrant Certificate. (a) If (i)
this Warrant Certificate is mutilated and surrendered to the Company or (ii) the Company receives
evidence to its satisfaction of the destruction, loss or theft of this Warrant Certificate, and
there is delivered to the Company such appropriate affidavit of loss, applicable processing fee and
indemnity as may be reasonably required by the Company to save it harmless, then, in the absence of
notice to the Company that this Warrant Certificate has been acquired by a bona fide purchaser, the
Company shall execute and deliver, in exchange for this Warrant Certificate if mutilated or in lieu
of this Warrant Certificate if destroyed, lost or stolen, a new Warrant Certificate of like tenor
and for a like aggregate number of Warrants.

          (b) Upon the issuance of any new Warrant Certificate under this Section 6.03, the Company
shall pay any taxes or other governmental charges that may be imposed in relation thereto and other
expenses in connection therewith.

13

 

          (c) Every new Warrant Certificate executed and delivered pursuant to this Section 6.03 in lieu
of any destroyed, lost or stolen Warrant Certificate shall constitute an original contractual
obligation of the Company, whether or not the destroyed, lost or stolen Warrant Certificate shall
be at any time enforceable by anyone.

          (d) The provisions of this Section 6.03 are exclusive and shall preclude (to the extent
lawful) all other rights or remedies with respect to the replacement of a mutilated, destroyed,
lost or stolen Warrant Certificate.

          SECTION 6.04. Removal of Legends.

          (a) In the event (i) the transfer of the Warrants or the shares of Company Common Stock issued
upon exercise of the Warrants are registered under the Securities Act or (ii) there is delivered to
the Company such satisfactory evidence, which may include an Opinion of Counsel licensed to
practice law in the State of New York, as may be reasonably required by the Company, that such
Warrants or shares are not “restricted securities” within the meaning of Rule 144 under the
Securities Act, the Company shall, or shall direct the Transfer Agent to and the Transfer Agent
shall, upon surrender by the Holder of this Warrant Certificate or certificates evidencing such
shares of Company Common Stock, as applicable, to the Company or the Transfer Agent, exchange such
certificates for certificates without the legend set forth on the first page of this Warrant
Certificate as of the Issuance Date or referred to in Section 1.05(b), as applicable.

          (b) In order to effect a Sale of Warrants or shares of Company Common Stock issued upon
exercise of the Warrants (other than pursuant to an effective registration statement under the
Securities Act), the Holder shall (i) give written notice to the Company of its intention to effect
such Sale, which notice shall describe the manner and circumstances of the proposed transaction in
reasonable detail and shall include a certification by the Holder to the effect that such proposed
Sale may be effected without registration under the Securities Act or under applicable state
securities laws, and (ii) provide such additional certifications of the Holder or its transferee or
Opinions of Counsel (which shall be reasonably satisfactory to the Company) as the Company may
reasonably request solely in order to confirm the availability of the applicable exemption from the
registration requirements of applicable securities laws. The Company will refuse to register any
Sale of Warrants or shares of Company Common Stock issued upon exercise of the Warrants that is not
made in accordance with the provisions of the legend set forth on the first page of this Warrant
Certificate as of the Issuance Date or referred to in Section 1.05(b), as applicable;
provided that the provisions of this Section 6.04(b) shall not be applicable to any such
security that does not bear any such legend.

          SECTION 6.05. Notices. Any notice, demand or delivery to the Company authorized by
this Warrant Certificate shall be sufficiently given or made when mailed if sent by first-class
mail, postage prepaid, addressed to the Company as follows:

14

 

XPO Logistics, Inc.

3399 South Lakeshore Drive, Suite 225

Saint Joseph, MI 49085

Facsimile: 269-695-7458

Attention: Secretary of the Board of Directors

          SECTION 6.06. Applicable Law. This Warrant Certificate and each Warrant represented
hereby and all rights arising hereunder shall be construed in accordance with the laws of the State
of Delaware, regardless of the laws that might otherwise govern under applicable principles of
conflicts of laws thereof.

          SECTION 6.07. Persons Benefiting. This Warrant Certificate shall be binding upon and
inure to the benefit of the Company and its successors, assigns, beneficiaries, executors and
administrators, and the Holder from time to time of the Warrants represented hereby. Except as
otherwise expressly provided herein, nothing in this Warrant Certificate is intended or shall be
construed to confer upon any Person, other than the Company and the Holder from time to time of the
Warrants represented hereby, any right, remedy or claim under or by reason of this Warrant
Certificate or any part hereof.

          SECTION 6.08. Supplements or Amendments. This Warrant Certificate may not be
supplemented or amended without the written approval of both the Holder and the Company.

          SECTION 6.09. Headings. The descriptive headings of the several Articles and Sections
of this Warrant Certificate are inserted for convenience and shall not control or affect the
meaning or construction of any of the provisions hereof.

          SECTION 6.10. Copies of Agreements. Copies of the Investment Agreement and the
Registration Rights Agreement referred to in Section 1.05(a) are on file at the principal place of
business of the Company and may be obtained by writing to the Company at the address set forth in
Section 6.05.

ARTICLE VII

Definitions.

          As used in this Warrant Certificate, the following terms shall have the following meanings:

          “Board” means the board of directors of the Company.

          “Board Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board and to

15

 

be in full force and effect on the date of such certification, and delivered to the Transfer
Agent.

          “Business Day” means any day other than a Saturday or Sunday or any other day on which
banks in the City of New York are authorized or required by law or executive order to close.

          “Capital Stock” of any Person means any and all shares, interests, participations or
other equivalents however designated of corporate stock or other equity participations, including
partnership interests, whether general or limited, of such Person and any rights (other than debt
securities convertible or exchangeable into an equity interest), warrants or options to acquire an
equity interest in such Person.

          The “Closing Sale Price” of the Company Common Stock on any date means the closing
sale price per share (or if no closing sale price is reported, the average of the closing bid and
ask prices or, if more than one in either case, the average of the average closing bid and the
average closing ask prices) on such date as reported on the over-the-counter “Pink Sheets” market
or, if the Company Common Stock is listed on a national securities exchange, the principal national
securities exchange on which the Company Common Stock is traded. In the absence of such a
quotation, the Closing Sale Price of the Company Common Stock will be an amount determined in good
faith by the Board to be the fair market value of such Company Common Stock, and such determination
shall be conclusive.

          “Company” has the meaning set forth in the introduction to this Warrant Certificate,
and its successors and assigns.

          “Company Common Stock” has the meaning set forth in the introduction to this Warrant
Certificate.

          “DOJ” has the meaning set forth in Section 5.03.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Exercise Price” has the meaning set forth in the introduction to this Warrant
Certificate.

          “Expiration Date” means the tenth anniversary of the Issuance Date.

          “Expiration Time” has the meaning set forth in Section 2.01(a)(v).

          “FTC” has the meaning set forth in Section 5.03.

          “Holder” means the initial Holder of this Warrant Certificate and any permitted
assignee or transferee thereof.

          “HSR Act” has the meaning set forth in Section 5.03.

16

 

          “including” means “including, without limitation”.

          “Initial Public Offering” means, in the event of a Spin-off, the first time securities
of the same class or type as the securities being distributed in the Spin-off are bona fide offered
to the public for cash.

          “Investment Agreement” has the meaning set forth in the introduction to this Warrant
Certificate.

          “Issuance Date” means September 2, 2011.

          “Market Value” means, with respect to any date of determination, the average Closing
Sale Price of the Company Common Stock for a five consecutive Trading Day period preceding the
earlier of (i) the day preceding the date of determination and (ii) the day before the “ex date”
with respect to the issuance or distribution requiring such computation. For purposes of this
definition, the term “ex date”, when used with respect to any issuance or distribution, means the
first date on which the Company Common Stock trades, regular way, on the over-the-counter “Pink
Sheets” market or, if the Company Common Stock is listed on a national securities exchange, the
principal national securities exchange on which the Company Common Stock is traded at that time,
without the right to receive the issuance or distribution.

          “Officer” means the Chairman of the Board, President, Chief Executive Officer, any
Vice President, the Chief Financial Officer, the Chief Accounting Officer, the Treasurer, any
Assistant Treasurer, the Controller, any Assistant Controller, the Secretary or any Assistant
Secretary of the Company.

          “Officer’s Certificate” means a certificate signed by two Officers.

          “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to
the Company or the Transfer Agent. The counsel may be an employee of or counsel to the Company or
the Transfer Agent.

          “Person” means any natural person, corporation, limited liability company,
partnership, joint venture, trust, business association, governmental entity or other entity.

          “Purchased Shares” has the meaning set forth in Section 2.01(a)(v).

          “Sale” has the meaning set forth in Section 1.05(a).

          “Securities Act” means the Securities Act of 1933, as amended.

          “Spin-off” means a dividend or other distribution of shares of Capital Stock of any
class or series, or similar equity interests, of or relating to a Subsidiary or other business unit
of the Company.

17

 

          “Subsidiary” of any Person means any other Person (i) more than 50% of whose
outstanding shares or securities representing the right to vote for the election of directors or
other managing authority of such other Person are, now or hereafter, owned or controlled, directly
or indirectly, by such first Person, but such other Person shall be deemed to be a Subsidiary only
so long as such ownership or control exists, or (ii) which does not have outstanding shares or
securities with such right to vote, as may be the case in a partnership, joint venture or
unincorporated association, but more than 50% of whose ownership interest representing the right to
make the decisions for such other Person is, now or hereafter, owned or controlled, directly or
indirectly, by such first Person, but such other Person shall be deemed to be a Subsidiary only so
long as such ownership or control exists.

          “Trading Day” means a day during which trading in securities generally occurs on the
over-the-counter “Pink Sheets” market or, if the Company Common Stock is listed on a national
securities exchange, the principal national securities exchange on which the Company Common Stock
is traded.

          “Transaction” has the meaning set forth in Section 2.02.

          “Transfer Agent” means Computershare Trust Company, N.A. unless and until a successor
is selected by the Company, and then such successor.

          “Triggering Event” means a specified event the occurrence of which entitles the
holders of rights, options or warrants to exercise such rights, options or warrants.

          “Warrants” has the meaning set forth in the introduction to this Warrant Certificate.

18

 

	 	 	 	 	 
	 	XPO LOGISTICS, INC.,

 	 
	 	by  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

19

 

ANNEX I

EXERCISE SUBSCRIPTION FORM

(To be executed only upon exercise of Warrant)

To:    XPO Logistics, Inc. (the “Company”)

          The undersigned irrevocably exercises            of the Warrants represented by the
Warrant Certificate for the purchase of one share (subject to adjustment in accordance with the
Warrant Certificate) of Company Common Stock, par value $0.001 per share, for each such Warrant and
herewith makes payment of $            (such payment being by bank wire transfer in immediately available
funds), all at the Exercise Price and on the terms and conditions specified in the Warrant
Certificate, surrenders this Warrant Certificate and all right, title and interest therein to the
Company and directs that the shares of Company Common Stock deliverable upon the exercise of such
Warrants be registered in the name and delivered at the address specified below.

Date:

	 	 	 	 	 	 	 

	 	 	 
	 

	 	(Signature of Owner)*	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 

	 	(Street Address)	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 
	 

	 	(City)
	 	(State)
	 	(Zip Code)

Securities to be issued to:

Please insert social security or identifying number:

Name:

Street Address:

City, State and Zip Code:

 

			
	*	 	The signature must correspond with the name as written upon the face of the Warrant
Certificate in every particular, without alteration or any change whatsoever.exv4w3

Exhibit 4.3

 

REGISTRATION RIGHTS AGREEMENT

by and among

JACOBS PRIVATE EQUITY, LLC,

THE OTHER HOLDERS OF REGISTRABLE SECURITIES AND

DESIGNATED SECURED LENDERS

and

XPO LOGISTICS, INC.

Dated as of September 2, 2011

 

 

 

TABLE OF CONTENTS

ARTICLE I

Definitions

ARTICLE II

Registration Rights

	 	 	 	 	 
	 	 	Page
	SECTION 2.01. Demand Registration Rights
	 	 	5	 
	SECTION 2.02. Piggyback Registration Rights
	 	 	7	 

ARTICLE III

Registration Procedures

	 	 	 	 	 

	SECTION 3.01. Expenses of Registration and Selling
	 	 	9	 
	SECTION 3.02. Obligations of the Company
	 	 	9	 
	SECTION 3.03. Suspension of Sales
	 	 	12	 
	SECTION 3.04. Furnishing Information
	 	 	13	 

ARTICLE IV

Indemnification and Contribution

	 	 	 	 	 

	SECTION 4.01. Indemnification
	 	 	13	 
	SECTION 4.02. Contribution
	 	 	15	 

ARTICLE V

Miscellaneous

	 	 	 	 	 

	SECTION 5.01. Indemnities to Survive
	 	 	16	 
	SECTION 5.02. Lock-Up Agreements
	 	 	16	 
	SECTION 5.03. Enforcement
	 	 	16	 
	SECTION 5.04. Rule 144 Reporting
	 	 	17	 
	SECTION 5.05. Notices
	 	 	17	 
	SECTION 5.06. Governing Law
	 	 	18	 
	SECTION 5.07. Assignment; Persons Benefiting
	 	 	18	 
	SECTION 5.08. Counterparts
	 	 	19	 
	SECTION 5.09. Amendments
	 	 	19	 
	SECTION 5.10. Severability
	 	 	19	 
	SECTION 5.11. Headings
	 	 	19	 
	SECTION 5.12. Entire Agreement
	 	 	19	 
	SECTION 5.13. Attorney’s Fees
	 	 	19	 
	SECTION 5.14. Limitation of Liability
	 	 	19	 
	 	 	 	 	 
	 	 	 	 	 
	SCHEDULE I    Initial Holders
	 	 	 	 

 

 

     REGISTRATION RIGHTS AGREEMENT dated as of September 2, 2011 (this
“Agreement”), by and among JACOBS PRIVATE EQUITY, LLC (the
“Investor Representative”), each of the other Holders (as defined
below), each Designated Secured Lender (as defined below) and XPO
LOGISTICS, INC., a Delaware corporation (the “Company”).

WITNESSETH:

          WHEREAS, this Agreement is entered into pursuant to that certain Investment Agreement dated as
of June 13, 2011 (the “Investment Agreement”), by and among the Investor Representative,
each of the other Initial Holders party thereto and the Company, pursuant to which the execution
and delivery of this Agreement is a condition to the closing of the transactions contemplated
thereby.

          NOW, THEREFORE, in consideration of the foregoing, the Investor Representative, the other
Initial Holders and the Company hereby agree as follows:

ARTICLE I

Definitions

          As used in this Agreement, the following terms shall have the following meanings:

          “Agreement” has the meaning set forth in the preamble to this Agreement.

          “Board” means the Board of Directors of the Company.

          “Company” has the meaning set forth in the preamble to this Agreement, and its
successors and permitted assigns.

          “Company Common Stock” means the common stock, par value $0.001 per share, of the
Company.

          “Demand Registration” has the meaning set forth in Section 2.01(a).

2

 

          “Demand Registration Statement” has the meaning set forth in Section 2.01(a).

          “Designated Secured Lender” means any secured lender or other pledgee of a Holder to
whom any Registrable Securities of such Holder are pledged as collateral or otherwise subjected to
a lien to secure an obligation of such Holder, and with respect to which the applicable Holder has
provided written notice to the Company that such person shall constitute a “Designated Secured
Lender” for purposes of this Agreement.

          “Exchange Act” means the Securities Exchange Act of 1934, as amended.

          “Expenses” means all expenses incurred by the Company, the Holders and any Designated
Secured Lenders in effecting any registration pursuant to this Agreement, including all
registration and filing fees, printing expenses, reasonable fees and disbursements of one counsel
selected by the Investor Representative to represent all Holders and Designated Secured Lenders of
Registrable Securities included in such registration, blue sky fees and expenses and expenses of
the Company’s independent accountants in connection with any regular or special reviews or audits
incident to or required by any such registration, but excluding all underwriting discounts and
selling commissions applicable to the sale of the applicable Registrable Securities.

          “Holder” means each holder of Registrable Securities, including the Initial Holders
and any assignees or transferees thereof (including any pledgees who acquire and hold Registrable
Securities upon foreclosure of the underlying obligation).

          “including” means “including, without limitation”.

          “Initial Holders” means the persons set forth on Schedule I to this Agreement.

          “Investment Agreement” has the meaning set forth in the preamble to this Agreement.

          “Investor Representative” has the meaning set forth in the preamble to this Agreement.

          “Majority Holders” has the meaning set forth in Section 2.01(a).

          “Maximum Number of Shares” has the meaning set forth in Section 2.01(c).

          “person” means any natural person, corporation, limited liability company,
partnership, joint venture, trust, business association, governmental entity or other entity.

          “Piggyback Registration” has the meaning set forth in Section 2.02(a).

          “Preferred Stock” means the shares of Series A Convertible Perpetual Preferred Stock
of the Company issued pursuant to the Investment Agreement.

3

 

          “Prospectus” means the prospectus included in any Registration Statement, as amended
or supplemented by any prospectus supplement with respect to the terms of the offering of any of
the Registrable Securities covered by such Registration Statement and by all other amendments and
supplements to the prospectus, including post-effective amendments and all material incorporated by
reference in such prospectus.

          “registered and registration” shall refer to a registration effected by preparing and
(a) filing a Registration Statement in compliance with the Securities Act
and applicable rules and regulations thereunder, and the declaration of or automatic
effectiveness of such Registration Statement or (b) filing a Prospectus and/or prospectus
supplement in respect of an appropriate effective Registration Statement on Form S-3.

          “Registrable Securities” means shares of Preferred Stock, Warrants and shares of
Company Common Stock or other securities issued or issuable upon conversion of the Preferred Stock
or upon exercise of the Warrants. Registrable Securities shall continue to be Registrable
Securities (whether they continue to be held by the Initial Holders or they are transferred to
other persons) until (i) they are sold pursuant to an effective Registration Statement under the
Securities Act; or (ii) they may be sold by their holder without registration under the Securities
Act pursuant to Rule 144 without limitation thereunder on volume or manner of sale or other
restrictions under Rule 144.

          “Registration Rights” means the rights of Holders set forth in Article II to have
Registrable Securities registered under the Securities Act for sale under one or more effective
Registration Statements.

          “Registration Statement” means any registration statement filed by the Company under
the Securities Act pursuant to the Registration Rights, including the Prospectus, any amendments
and supplements to such registration statement, including post-effective amendments, and all
exhibits and all material incorporated by reference in such registration statement.

          “Rule 144 and Rule 415” mean, in each case, such rule promulgated under the Securities
Act (or any successor provision), as such rule may be amended from time to time.

          “Scheduled Black-Out Period” means, with respect to any fiscal quarter, the period
from and including the last day of such fiscal quarter to and including the day that is one day
after the day on which the Company publicly releases its earnings for such fiscal quarter.

          “SEC” means the Securities and Exchange Commission.

          “Securities Act” means the Securities Act of 1933, as amended.

          “Warrants” means the warrants to purchase Company Common Stock issued pursuant to the
Investment Agreement.

4

 

ARTICLE II

Registration Rights

          SECTION 2.01. Demand Registration Rights. (a) Subject to the provisions hereof, any
Holder or group of Holders holding Registrable Securities constituting, convertible into or
exercisable for, in the aggregate, no less than a majority of the total number of shares of Company
Common Stock that either constitute Registrable Securities or are issuable upon conversion of
Preferred Stock or exercise of
Warrants that constitute Registrable Securities (the “Majority Holders”) may, at any
time from and after the date hereof, request registration for resale under the Securities Act of
all or part of the Registrable Securities (a “Demand Registration”) by giving written
notice thereof to the Company (which request shall specify the number of shares of Registrable
Securities to be offered by each Holder and/or its Designated Secured Lenders and whether such
Registration Statement shall be a “shelf” Registration Statement under Rule 415 promulgated under
the Securities Act). The Company shall give written notice of any request for a Demand
Registration, which request complies with this Section 2.01(a), within five days after the receipt
thereof, to each Holder who did not initially join in such request. Within 10 days after receipt
of such notice, any such Holder may request in writing that all or part of its Registrable
Securities be included in such Demand Registration, and the Company shall include in the Demand
Registration the Registrable Securities of each such Holder requested to be so included, subject to
the provisions of Section 2.01(c). Each such request shall specify the number of shares of
Registrable Securities to be offered by such Holder and/or its Designated Secured Lenders. If
requested by any Holder, the Company shall include as a selling security holder in the applicable
Registration Statement any Designated Secured Lender of the applicable Holder with respect to the
Registrable Securities of the applicable Holder, subject to Section 3.04. Subject to Section
2.01(c) below, upon receipt of a Demand Registration notice in accordance herewith, the Company
shall use reasonable best efforts (i) to file a Registration Statement (which shall be a “shelf”
Registration Statement under Rule 415 promulgated under the Securities Act if requested pursuant to
the request of the Majority Holders pursuant to the first sentence of this Section 2.01(a))
registering for resale such number of Registrable Securities as requested to be so registered as
promptly as reasonably practicable and in any event within 30 days, in the case of a registration
statement on Form S-3, or 45 days, in the case of a registration statement on Form S-1, after the
request of the Majority Holders therefor (such Registration Statement, a “Demand Registration
Statement”) and (ii) to cause such Demand Registration Statement to be declared effective by
the SEC as promptly as reasonably practicable thereafter. Notwithstanding the foregoing, the
Company shall not be required to effect a registration pursuant to this Section 2.01(a): (A) with
respect to securities that are not Registrable Securities; (B) during any Scheduled Black-Out
Period; (C) if the aggregate offering price of the Registrable Securities to be offered is less
than $5,000,000, unless the Registrable Securities to be offered constitute all of the
then-outstanding Registrable Securities; or (D) within 90 days after the effective date of a prior
Demand Registration Statement. If permitted under the Securities Act, such Demand Registration
Statement shall be one that is automatically effective upon filing.

5

 

          (b) The Holders shall be entitled to a total of three Demand Registrations. A Registration
Statement shall not count as a permitted Demand Registration unless and until it has become
effective and Holders are able to register at least 75% of the Registrable Securities requested by
the Holders to be included in such registration. A Demand Registration shall not count against the
number of such registrations set forth in the second preceding sentence if (i) after the applicable
Demand Registration Statement has become effective, such Demand Registration Statement or the
related offer, sale or distribution of Registrable Securities thereunder becomes the subject of any
stop order, injunction or other order or restriction imposed by the SEC or any other governmental
agency or court for any reason attributable to the Company and such interference is not
thereafter eliminated so as to permit the completion of the contemplated distribution of
Registrable Securities or (ii) in the case of an underwritten offering, the conditions specified in
the related underwriting agreement, if any, are not satisfied or waived for any reason attributable
to the Company or for any reason not attributable to the selling Holder or Holders or their
applicable Designated Secured Lenders, and as a result of any such circumstances described in
clause (i) or (ii), less than all of the Registrable Securities covered by the Demand Registration
Statement are sold by the selling Holder or Holders or their applicable Designated Secured Lenders
pursuant to the Demand Registration Statement.

          (c) The Company may include in a Demand Registration Statement shares of Company Common Stock
for sale for its own account or for the account of other security holders of the Company. If such
Demand Registration Statement is in respect of an underwritten offering and the managing
underwriters of the requested Demand Registration advise the Company and the Investor
Representative that in their reasonable opinion the number of shares of Company Common Stock or
other securities proposed to be included in the Demand Registration Statement exceeds the number of
shares of Company Common Stock or other securities that can be sold in such underwritten offering
without materially delaying or jeopardizing the success of the offering (including the offering
price per share) (such maximum number of shares, the “Maximum Number of Shares”), the
Company will include in such Demand Registration Statement only such number of shares of Company
Common Stock and other securities that in the reasonable opinion of the managing underwriters can
be sold without materially delaying or jeopardizing the success of the offering (including the
offering price per share), which shares of Company Common Stock and other securities will be so
included in the following order of priority: (i) first, the Registrable Securities of all Holders
requested to be included therein, pro rata on the basis of the aggregate number of shares of
Company Common Stock represented (including upon exercise or conversion) by the Registrable
Securities requested to be included by each such Holder; (ii) second, the shares of Company Common
Stock and other securities the Company proposes to sell; and (iii) third, any other shares of
Company Common Stock and other securities that have been requested to be so included by any other
person.

          (d) If any of the Registrable Securities covered by a Demand Registration are to be sold in an
underwritten offering, the Company and the Investor Representative shall mutually agree upon the
selection of the managing underwriter or underwriters. If the Company and the Investor
Representative are unable to agree on the managing

6

 

underwriter or underwriters within a reasonable
amount of time, the Company and the Investor Representative shall each select a managing
underwriter and such underwriters shall serve as joint managing underwriters in respect of such
offering.

          (e) Notwithstanding the foregoing, if the Board determines in its good faith judgment that the
filing of a Demand Registration Statement would require the disclosure of material non-public
information concerning the Company that at the time is not, in the good faith judgment of the
Board, in the best interests of the Company to disclose and is not, in the opinion of the Company’s
counsel, otherwise required to be
disclosed, then the Company shall have the right to defer such filing for the period during
which such registration would require such disclosure; provided, however, that (x)
the Company may not defer such filing for a period of more than 45 days per notice, (y) the total
number of days that any such deferrals may be in effect in any 12-month period shall not exceed 90
days in the aggregate, less (without duplication) the number of days during such 12-month period in
which any suspensions pursuant to Section 3.03(ii) are or have been in effect, and (z) the Company
shall not exercise its right to defer a Demand Registration more than three times in the aggregate
in any 12-month period, less the number of suspensions pursuant to Section 3.03(ii) that are or
have been in effect during such 12-month period. The Company shall give written notice of its
determination to the Holders and any applicable Designated Secured Lenders to defer the filing and
of the fact that the purpose for such deferral no longer exists, in each case, as promptly as
reasonably practicable after the occurrence thereof.

          (f) The Company shall use reasonable best efforts to keep each Demand Registration Statement
effective until the earlier of (i) two years (in the case of a shelf Demand Registration Statement)
or 90 days (in the case of any other Demand Registration Statement) from the effective date of such
Demand Registration Statement and (ii) such time as all of the Registrable Securities covered by
such Demand Registration Statement have been sold pursuant to such Demand Registration Statement.

          SECTION 2.02. Piggyback Registration Rights. (a) If at any time the Company has
registered or has determined to register any of its securities for its own account or for the
account of other security holders of the Company on any registration form (other than Form S-4 or
S-8 or a successor form, or any other form if substantially all of the proceeds thereof are to be
used to finance any publicly-announced acquisition) which permits the inclusion of the Registrable
Securities (a “Piggyback Registration”), the Company will give the Holders written notice
thereof promptly (but in no event less than 15 days prior to the anticipated filing date) and,
subject to this Section 2.02, shall include in such registration all Registrable Securities
requested to be included therein pursuant to the written request of one or more Holders received
within 10 days after delivery of the Company’s notice. If requested by any Holder, the Company
shall include as a selling security holder in the applicable Registration Statement any Designated
Secured Lender of the applicable Holder with respect to the Registrable Securities of the
applicable Holder, subject to Section 3.04. If a Piggyback Registration is initiated as a primary
underwritten offering on behalf of the Company, and the managing underwriters advise the Company
and the Investor Representative that in their reasonable opinion the number of shares of Company
Common Stock and other

7

 

securities proposed to be included in such registration exceeds the Maximum
Number of Shares, the Company shall include in such registration: (i) first, the number of shares
of Company Common Stock and other securities that the Company proposed to sell; (ii) second, the
number of shares of Company Common Stock and other Registrable Securities requested to be included
therein by all Holders who have requested registration of Registrable Securities in accordance with
this Section 2.02(a), pro rata on the basis of the aggregate number of shares of Company Common
Stock represented (including upon exercise or conversion) by the Registrable Securities requested
to be included by each such Holder; and (iii) third, any other shares of Company Common
Stock and other securities that have been requested to be so included by any other person.

          (b) If a Piggyback Registration is initiated as an underwritten registration on behalf of a
holder of shares of Company Common Stock or other securities other than the Holders (or, for the
avoidance of doubt, their assignees) pursuant to a written agreement enforceable against the
Company, and the managing underwriters advise the Company and the Investor Representative that in
their reasonable opinion the number of shares of Company Common Stock and other securities proposed
to be included in such registration exceeds the Maximum Number of Shares, then the Company shall
include in such registration: (i) first, the number of shares of Company Common Stock and other
securities requested to be included therein by the holder(s) requesting such registration; (ii)
second, the number of shares of Company Common Stock and other Registrable Securities requested to
be included therein by all Holders who have requested registration of Registrable Securities in
accordance with Section 2.02(a), pro rata on the basis of the aggregate number of shares of Company
Common Stock represented (including upon exercise or conversion) by the Registrable Securities
requested to be included by each such Holder; (iii) third, the number of shares of Company Common
Stock and other securities that the Company proposes to sell; and (iv) fourth, any other shares of
Company Common Stock and other securities that have been requested to be so included by any other
person.

          (c) If any Piggyback Registration is a primary or secondary underwritten offering, the Company
shall have the right to select, in its sole discretion, the managing underwriter or underwriters to
administer any such offering.

          (d) The Company shall not grant to any person the right to request the Company to register any
shares of Company Common Stock or other securities in a Piggyback Registration unless such rights
are consistent with the provisions of this Section 2.02.

          (e) Each Holder may withdraw all or any part of its Registrable Securities (on its own behalf
or on behalf of its applicable Designated Secured Lender) from a Piggyback Registration at any time
by delivering written notice of such withdrawal request to the Company, unless such Piggyback
Registration is underwritten, in which case Registrable Securities may not be withdrawn after the
effective date of the applicable Registration Statement.

8

 

ARTICLE III

Registration Procedures

          SECTION 3.01. Expenses of Registration and Selling. All Expenses of the Company, the
Holders and the applicable Designated Secured Lenders incurred in connection with any registration,
qualification or compliance hereunder or the sale of any securities registered hereunder shall be
borne by the Company.

          SECTION 3.02. Obligations of the Company. Whenever required to effect the
registration of any Registrable Securities, the Company shall, as expeditiously as reasonably
practicable, subject to the other provisions of this Agreement:

          (a) Prepare and file with the SEC a Registration Statement with respect to a proposed offering
of Registrable Securities and use reasonable best efforts to have such Registration Statement
declared effective as promptly as practicable.

          (b) Prepare and file with the SEC such amendments and supplements to the applicable
Registration Statement and the Prospectus or prospectus supplement used in connection with such
Registration Statement as may be necessary to comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities covered by such Registration Statement.

          (c) Furnish to the selling Holder or Holders, any applicable Designated Secured Lender and any
underwriters such number of copies of the applicable Registration Statement and each such amendment
and supplement thereto (including in each case all exhibits) and of a Prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities Act, and such other
documents as they may reasonably request in order to facilitate the disposition of Registrable
Securities owned or to be distributed by them.

          (d) Use reasonable best efforts to register and qualify the securities covered by such
Registration Statement under such other securities or blue sky laws of such jurisdictions as shall
be reasonably requested by the Investor Representative or any managing underwriter(s), to keep such
registration or qualification in effect for so long as such Registration Statement remains in
effect and to take any other action which may be reasonably necessary to enable the selling Holder
or Holders or their applicable Designated Secured Lenders to consummate the disposition in such
jurisdictions of the securities owned by the selling Holder or Holders or their applicable
Designated Secured Lenders; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to qualify to do business, to file a
general consent to service of process or to become subject to taxation in any such states or
jurisdictions.

          (e) Notify the selling Holder or Holders and their applicable Designated Secured Lenders at
any time when a Prospectus relating thereto is required to be delivered under the Securities Act of
the happening of any event as a result of which the applicable Prospectus, as then in effect,
includes an untrue statement of a material fact or

9

 

omits to state a material fact required to be
stated therein or necessary to make the statements therein, in the light of the circumstances under
which such statements were made, not misleading.

          (f) Give written notice to the selling Holder or Holders and their applicable Designated
Secured Lenders:

     (i) when any Registration Statement filed pursuant to Section 2.01 or 2.02 or
any amendment thereto has been filed with the SEC and when
such Registration Statement or any post-effective amendment thereto has become
effective;

     (ii) of any request by the SEC for amendments or supplements to any
Registration Statement or the Prospectus included therein or for additional
information;

     (iii) of the issuance by the SEC of any stop order suspending the
effectiveness of any Registration Statement or the initiation of any proceedings
for that purpose;

     (iv) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of the Registrable Securities
for sale in any jurisdiction or the initiation or threatening of any proceeding for
such purpose; and

     (v) of the happening of any event that requires the Company to make changes in
any effective Registration Statement or Prospectus in order to make the statements
therein not misleading (in the case of the Prospectus, in the light of the
circumstances under which such statements were made), which notice shall be
accompanied by an instruction to suspend the use of the Prospectus until the
requisite changes have been made.

          (g) Use reasonable best efforts to prevent the issuance or obtain the withdrawal of any order
suspending the effectiveness of any Registration Statement referred to in Section 3.02(f)(iii) at
the earliest practicable time.

          (h) Upon the occurrence of any event contemplated by Section 3.02(f)(v), promptly prepare a
post-effective amendment to such Registration Statement or a supplement to the related Prospectus
or file any other required document so that, as thereafter delivered to the selling Holder or
Holders, their applicable Designated Secured Lenders and any underwriters, the Prospectus will not
contain an untrue statement of a material fact or omit to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading. If the Company notifies the selling Holder or Holders and their applicable Designated
Secured Lenders in accordance with Section 3.02(f)(v) to suspend the use of the Prospectus until
the requisite changes to the Prospectus have been made, then the selling Holder or Holders and
their applicable Designated Secured Lenders and any underwriters shall suspend use of such
Prospectus and use reasonable best efforts to return to the
Company

10

 

all copies of such Prospectus
(at the Company’s expense) other than permanently filed copies then in the possession of the
selling Holder or Holders, their applicable Designated Secured Lenders or the underwriters.

          (i) Use reasonable best efforts to procure the cooperation of the Company’s transfer agent in
settling any offering or sale of Registrable Securities, including with respect to the transfer of
physical stock certificates into book-entry form
in accordance with any procedures reasonably requested by the Investor Representative or any
managing underwriter(s).

          (j) In the case of an underwritten offering, enter into an underwriting agreement in form,
scope and substance as is customarily entered into for similar underwritten offerings of equity
securities by similar companies and take all such other actions reasonably requested by the
Investor Representative or by the managing underwriter(s), if any, to expedite or facilitate the
underwritten disposition of such Registrable Securities, and in connection therewith (i) make such
representations and warranties to the selling Holder or Holders, their applicable Designated
Secured Lenders and the managing underwriter(s) with respect to the business of the Company and its
subsidiaries, and the Registration Statement, Prospectus and documents, if any, incorporated or
deemed to be incorporated by reference therein, in each case, in form, substance and scope as are
customarily made by the issuer in similar underwritten offerings of equity securities by similar
companies, and, if true, confirm the same if and when requested; (ii) use reasonable best efforts
to furnish the underwriter(s) with opinions of counsel to the Company, addressed to the managing
underwriter(s), covering the matters customarily covered in the opinions requested in similar
underwritten offerings of equity securities by similar companies; (iii) use reasonable best efforts
to obtain “cold comfort” letters from the current and former independent certified public
accountants of the Company (and, if necessary, any other independent certified public accountants
of any business acquired by the Company for which financial statements and financial data are
included in the Registration Statement) who have certified the financial statements included in
such Registration Statement, such letters to be in customary form and covering matters of the type
customarily covered in “cold comfort” letters in connection with similar underwritten offerings of
equity securities by similar companies; (iv) if an underwriting agreement is entered into, provide
that the same shall contain indemnification provisions and procedures customary in similar
underwritten offerings of equity securities by similar companies and consistent with the provisions
of Section 4.01 hereof; and (v) deliver such documents and certificates as may be reasonably
requested by the selling Holder or Holders, their counsel and the managing underwriter(s) to
evidence the continued validity of the representations and warranties made pursuant to clause (i)
above and to evidence compliance with any customary conditions contained in the underwriting
agreement or other agreement entered into by the Company.

          (k) Make available for inspection by a single representative of the selling Holder or Holders
and their applicable Designated Secured Lenders, and the managing underwriter(s), if any, and their
respective attorneys or accountants, at the offices where normally kept, during reasonable business
hours, financial and other records, pertinent corporate documents and properties of the Company,
and cause the officers, directors and

11

 

employees of the Company to supply all information in each
case reasonably requested by any such representative, managing underwriter(s), attorney or
accountant in connection with such Registration Statement.

          (l) (i) Use reasonable best efforts to cause all shares of Company Common Stock covered by a
Registration Statement to be listed on the national securities exchange on which the Company Common
Stock is then listed, and enter into such
customary agreements, including a supplemental listing application and indemnification
agreement in customary form; provided, however, that the applicable listing
requirements are satisfied, and (ii) provide a transfer agent and registrar for such Registrable
Securities covered by such Registration Statement no later than the effective date of such
Registration Statement. For the avoidance of doubt, the Company shall bear the cost of all
reasonable expenses associated with any listing.

          (m) Make reasonably available senior executives of the Company to participate in “road show”
and other marketing presentations from time to time as reasonably requested by the managing
underwriter(s), if any.

          SECTION 3.03. Suspension of Sales. During (i) any Scheduled Black-Out Period, (ii)
upon receipt of written notice from the Company that the Board has determined, in good faith, that
permitting continuing offers and sales of Registrable Securities registered under a shelf
Registration Statement would require the disclosure of material non-public information concerning
the Company that at the time is not, in the good faith judgment of the Board, in the best interests
of the Company to disclose and is not, in the opinion of the Company’s counsel, otherwise required
to be disclosed, the period during which allowing such offers and sales would require such
disclosure (provided that (x) the Company may not suspend use of the applicable
Registration Statement pursuant to this clause (ii) for a period of more than 45 days per notice,
(y) the total number of days that any such suspensions pursuant to this clause (ii) may be in
effect in any 12-month period shall not exceed 90 days in the aggregate, less (without duplication)
the number of days during such 12-month period in which any deferrals pursuant to Section 2.01(e)
are or have been in effect, and (z) the Company shall not exercise its right to suspend use of a
Registration Statement pursuant to this clause (ii) more than three times in the aggregate in any
12-month period, less the number of deferrals pursuant to Section 2.01(e) that are or have been in
effect during such 12-month period), or (iii) the period following receipt of written notice from
the Company that a Registration Statement, Prospectus or prospectus supplement contains or may
contain an untrue statement of a material fact or omits to state a material fact required to be
stated therein or necessary to make the statements therein not misleading (excluding for purposes
of this clause (iii) any event or circumstances to which clause (ii) could be applicable), the
selling Holder or Holders and their applicable Designated Secured Lenders shall discontinue
disposition of Registrable Securities pursuant to the applicable Registration Statement until the
termination of such Scheduled Black-Out Period or until the selling Holder or Holders and their
applicable Designated Secured Lenders have received copies of a supplemented or amended Prospectus
or prospectus supplement, or until the selling Holder or Holders and their applicable Designated
Secured Lenders are advised in writing by the Company that the use of the Prospectus and, if
applicable,

12

 

prospectus supplement may be resumed. If so directed by the Company, in the case of a
suspension pursuant to clause (iii), the selling Holder or Holders and their applicable Designated
Secured Lenders shall deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in their possession, of the Prospectus and, if applicable, prospectus
supplement covering such Registrable Securities current at the time of receipt of such suspension
notice. The Company shall use reasonable best efforts to cure any untrue statement of a material
fact or material omission in order to
permit the resumption of dispositions at the earliest practicable date following a suspension
in accordance with clause (iii).

          SECTION 3.04. Furnishing Information. It shall be a condition precedent to the
obligations of the Company to include the Registrable Securities of any Holder and its Designated
Secured Lenders in any Registration Statement that the applicable Holder or its applicable
Designated Secured Lender furnish to the Company such information regarding itself, the Registrable
Securities held by or pledged to it and the intended method of disposition of such securities as
shall be required to effect the registered offering of its Registrable Securities in accordance
with the Securities Act and the requirements of the applicable Securities Act form. As a condition
to any Designated Secured Lender being named as a selling security holder in any Registration
Statement pursuant hereto, the Company may, in its discretion, require that such Designated Secured
Lender confirm in writing its agreement to comply with the obligations of a Designated Secured
Lender specified in this Agreement with respect to such registration.

ARTICLE IV

Indemnification and Contribution

          SECTION 4.01. Indemnification. (a) In connection with each registration pursuant to
Article II, the Company agrees to indemnify and hold harmless each selling Holder and each
Designated Secured Lender named as a selling security holder in the applicable Registration
Statement, and each person, if any, who controls any such person within the meaning of Section 15
of the Securities Act, as follows:

     (i) against any and all loss, liability, claim, damage and expense whatsoever,
as incurred, arising out of an untrue statement or alleged untrue statement of a
material fact contained in the Registration Statement (or any amendment thereto),
or the omission or alleged omission therefrom of a material fact required to be
stated therein or necessary to make the statements therein not misleading, or
arising out of an untrue statement of a material fact included in any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto), or the
omission or alleged omission therefrom of a material fact necessary in order to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; and

13

 

     (ii) against any and all loss, liability, claim, damage and expense
whatsoever, as incurred, to the extent of the aggregate amount paid in settlement
of any litigation, or investigation or proceeding by any governmental agency or
body, commenced or threatened, or of any claim whatsoever based upon any such
untrue statement or omission, or any such alleged untrue statement or omission, if
such settlement is effected with the written consent of the Company, which consent
shall not be unreasonably withheld;

provided, however, that, with respect to any selling Holder or Designated Secured
Lender, this indemnity shall not apply to any loss, liability, claim, damage or expense to the
extent arising out of an untrue statement or omission or alleged untrue statement or omission made
in reliance upon and in conformity with written information furnished to the Company by such
selling Holder or Designated Secured Lender expressly for use in the Registration Statement (or any
amendment thereto), or any preliminary prospectus or the Prospectus (or any amendment or supplement
thereto).

          (b) Each selling Holder and each Designated Secured Lender agrees, severally and not jointly,
to indemnify and hold harmless the Company, its directors, each of its officers who signed a
Registration Statement and the other selling Holders and applicable Designated Secured Lenders, and
each person, if any, who controls the Company, any other selling Holder or any Designated Secured
Lender within the meaning of Section 15 of the Securities Act, against any and all loss, liability,
claim, damage and expense described in the indemnity contained in Section 4.01(a), as incurred, but
only with respect to untrue statements or omissions, or alleged untrue statements or omissions,
made in the Registration Statement (or any amendment thereto), or any preliminary prospectus or the
Prospectus (or any amendment or supplement thereto), in reliance upon and in conformity with
written information furnished to the Company by such selling Holder or Designated Secured Lender
expressly for use in the Registration Statement (or any amendment thereto), or any preliminary
prospectus or the Prospectus (or any amendment or supplement thereto); provided that no
such selling Holder or Designated Secured Lender shall be liable under this Section 4.01 for any
amounts exceeding the product of the sales price per Registrable Security and the number of
Registrable Securities being sold pursuant to such Registration Statement or Prospectus by such
selling Holder or Designated Secured Lender.

          (c) Each indemnified party shall give prompt notice to each indemnifying party of any action
commenced against it in respect of which indemnity may be sought hereunder, but failure to so
notify an indemnifying party shall not relieve the indemnifying party from any liability it may
have under this Agreement, except to the extent that the indemnifying party is prejudiced thereby.
If it so elects, after receipt of such notice, an indemnifying party, jointly with any other
indemnifying parties receiving such notice, may assume the defense of such action with counsel
chosen by it; provided, however, that the indemnified party shall be entitled to
participate in (but not control) the defense of such action with counsel chosen by it, the
reasonable fees and expenses of which shall be paid by such indemnified party, unless a conflict
would arise if one counsel were to represent both the indemnified party and the indemnifying party,
in

14

 

which case the reasonable fees and expenses of counsel to the indemnified party shall be paid by
the indemnifying party or parties. In no event shall the indemnifying party or parties be liable
for a settlement of an action with respect to which they have assumed the defense if such
settlement is effected without the written consent of such indemnifying party, or for the
reasonable fees and expenses of more than one counsel for (i) the Company and its officers,
directors and controlling persons as a group, and (ii) the selling Holders, the applicable
Designated Secured Lenders and their controlling persons as a group, in each case, in connection
with any one action or separate but similar or related actions in the same jurisdiction arising out
of the same general allegations or
circumstances; provided, however, that if, in the reasonable judgment of an
indemnified party, a conflict of interest may exist between such indemnified party and the Company
or any other of such indemnified parties with respect to such claim, the indemnifying party shall
be obligated to pay the reasonable fees and expenses of such additional counsel.

          SECTION 4.02. Contribution. (a) If the indemnification provided for in or pursuant
to Section 4.01 is due in accordance with the terms hereof, but held by a court of competent
jurisdiction to be unavailable or unenforceable in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then each applicable indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying party on the one
hand and of the indemnified party on the other in connection with the statements or omissions which
result in such losses, claims, damages, liabilities or expenses as well as any other relevant
equitable considerations. The relative fault of the indemnifying party on the one hand and of the
indemnified party on the other shall be determined by reference to, among other things, whether the
untrue or alleged untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the indemnifying party or by the indemnified
party, and by such party’s relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. In no event shall the liability of any selling
Holder or Designated Secured Lender be greater in amount than the amount for which such selling
Holder or Designated Secured Lender would have been obligated to pay by way of indemnification if
the indemnification provided for under Section 4.01(a) had been available under the circumstances.

          (b) No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this Section 4.02(b), each director of the Company,
each officer of the Company who signed a Registration Statement, and each person, if any, who
controls the Company or a selling Holder or Designated Secured Lender within the meaning of Section
15 of the Securities Act shall have the same rights to contribution as the Company or such selling
Holder or Designated Secured Lender, as the case may be.

15

 

ARTICLE V

Miscellaneous

          SECTION 5.01. Indemnities to Survive. The indemnity and contribution agreements
contained in this Agreement shall remain operative and in full force and effect regardless of (i)
any termination of any underwriting or agency agreement; (ii) any investigation made by or on
behalf of the selling Holder or Holders, any applicable Designated Secured Lender, the Company or
any underwriter or agent or controlling person; or (iii) the consummation of the sale or successive
resales of the Registered Securities.

          SECTION 5.02. Lock-Up Agreements. (a) The Company agrees that, in connection with an
underwritten offering in respect of which Registrable Securities are being sold, if requested by
the managing underwriter(s), it will not, directly or indirectly, sell, offer to sell, grant any
option for the sale of, or otherwise dispose of, any Company Common Stock or securities convertible
into or exchangeable or exercisable for Company Common Stock (subject to customary exceptions),
other than any such sale or distribution of Company Common Stock upon conversion of the Preferred
Stock or upon exercise of the Warrants, for a period of 90 days from the effective date of the
registration statement pertaining to such Registrable Securities or such shorter period to which
the selling Holder or Holders and the Designated Secured Lenders are subject.

          (b) The lock-up agreements set forth in Section 5.02(a) shall be subject to customary
exceptions that may be set forth in a written underwriting agreement.

          SECTION 5.03. Enforcement. The Company, the Holders and the Designated Secured
Lenders agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were otherwise breached. It
is accordingly agreed that the Company, the Holders and the Designated Secured Lenders shall be
entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions of this Agreement in the Delaware Court of Chancery (and if
the Delaware Court of Chancery shall be unavailable, in any Delaware State court or the Federal
court of the United States of America sitting in the State of Delaware), this being in addition to
any other remedy to which they are entitled at law or in equity. Each of the parties agrees that it
will not oppose the granting of an injunction, specific performance and other equitable relief on
the basis that (x) any party has an adequate remedy at law or (y) an award of specific performance
is not an appropriate remedy for any reason at law or equity.

16

 

          SECTION 5.04. Rule 144 Reporting. With a view to making available to the Holders the
benefits of certain rules and regulations of the SEC which may permit the sale of the Registrable
Securities to the public without registration, the Company agrees to use reasonable best efforts
to:

          (a) for so long as it is subject to the periodic reporting obligations of the Exchange Act,
make and keep public information available, as those terms are understood and defined in Rule
144(c)(1) or any similar or analogous rule promulgated under the Securities Act, at all times after
the effective date of this Agreement;

          (b) for so long as it is subject to the periodic reporting obligations of the Exchange Act,
file with the SEC, in a timely manner, all reports and other documents required of the Company
under the Exchange Act; and

          (c) furnish to the Holders and any Designated Secured Lenders forthwith upon request: (i) in
the event the Company is no longer subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act, a written statement by the Company as to its compliance with the reporting
requirements of Rule 144 under the
Securities Act and of the Exchange Act; (ii) in the event the Company is subject to the
reporting requirements of Section 13 or 15(d) of the Exchange Act, a copy of the most recent annual
or quarterly report of the Company; and (iii) such other reports and documents as the Holders may
reasonably request in availing themselves of any rule or regulation of the SEC allowing them to
sell any such securities without registration; provided, however, that the Company
shall be deemed to have furnished any such document if it shall have timely made such document
available on the SEC’s Electronic Data Gathering, Analysis and Retrieval System, or a successor
system.

          SECTION 5.05. Notices. Any notice, demand or delivery to the Investor Representative
or the Company authorized by this Agreement shall be sufficiently given or made when mailed if sent
by first-class mail, postage prepaid, addressed to the Investor Representative or the Company, as
applicable, as follows:

          if to the Investor Representative, to:

Jacobs Private Equity, LLC

350 Round Hill Road

Greenwich, CT 06831

Facsimile: 203-661-6684

Attention: Bradley S. Jacobs

17

 

          with a copy to:

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019

Facsimile: 212-474-3700

Attention: Eric L. Schiele, Esq.

          if to the Company, to:

XPO Logistics, Inc.

3399 South Lakeshore Drive, Suite 225

Saint Joseph, MI 49085

Facsimile: 269-695-7458

Attention: John D. Welch,

or such other address as shall have been furnished to the party giving or making such notice,
demand or delivery.

          Any notice required to be given by the Company to the Holders (other than the Investor
Representative) or any Designated Secured Lenders pursuant to this Agreement shall be made by
mailing by registered mail, return receipt requested, to such Holders at their respective addresses
shown on the register of the Company or to such Designated Secured Lenders at their respective
addresses designated in writing to the
Company by the applicable Holders. Any notice that is mailed to any such Holder or Designated
Secured Lender in the manner herein provided shall be conclusively presumed to have been duly given
when mailed, whether or not such Holder or Designated Secured Lender receives the notice.

          SECTION 5.06. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware, regardless of the laws that might otherwise
govern under applicable principles of conflicts of laws thereof.

          SECTION 5.07. Assignment; Persons Benefiting. Any Holder may assign all or a portion
of its rights hereunder (including the exclusive right to exercise the Registration Rights with
respect to such Holder’s Registrable Securities) to any person (including any secured lender or
other pledgee of such Holder) to which such Holder assigns or transfers any interest in all or a
portion of such Holder’s Registrable Securities. The Company shall acknowledge any such assignment
promptly upon the written request (including documentation reasonably satisfactory to the Company
of such assignment) of such Holder or such Holder’s assignee. This Agreement shall be binding upon
and inure to the benefit of the Company and the Investor Representative, and their respective
successors, assigns, beneficiaries, executors and administrators, and the Holders from time to time
of the Registrable Securities, and the Designated Secured Lenders. Except as otherwise expressly
provided herein, nothing in this Agreement is intended or shall be construed to confer upon any
person, other than the Company, the

18

 

Investor Representative, the Holders and the Designated Secured
Lenders, any right, remedy or claim under or by reason of this Agreement or any part hereof.

          SECTION 5.08. Counterparts. This Agreement may be executed in any number of
counterparts, including by means of facsimile and/or electronic mail transmission, each of which
shall be deemed an original, but all of which together constitute one and the same instrument.

          SECTION 5.09. Amendments. Neither this Agreement nor any provisions hereof shall be
waived, modified, changed, discharged or terminated other than in a writing signed by each of the
Company and the Majority Holders.

          SECTION 5.10. Severability. If any provision of this Agreement or the application of
any such provision to any person or circumstance shall be held invalid, illegal or unenforceable in
any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability
shall not affect the validity, legality or enforceability of any other provision hereof and the
invalidity of a particular provision in a particular jurisdiction shall not invalidate such
provision in any other jurisdiction.

          SECTION 5.11. Headings. The descriptive headings of the several Articles and Sections
of this Agreement are inserted for convenience and shall not control or affect the meaning or
construction of any of the provisions hereof.

          SECTION 5.12. Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof, and
supersedes all prior agreements and understandings, both written and oral, between the parties
with respect to the subject matter hereof.

          SECTION 5.13. Attorney’s Fees. In any action or proceeding brought to enforce any
provision of this Agreement, the successful party shall be entitled to recover reasonable
attorney’s fees in addition to its costs and expenses and any other available remedy.

          SECTION 5.14. Limitation of Liability. No party to this Agreement shall be liable to
any other party for any consequential, indirect or special damages under any provision of this
Agreement or for any consequential, indirect, punitive or special damages arising out of any act or
failure to act hereunder even if that party has been advised of or has foreseen the possibility of
such damages.

19

 

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

	 	 	 	 	 
	 	XPO LOGISTICS, INC.

 	 
	 	by  	/s/ Michael R. Welch
 	 
	 	 	Name:  	Michael R. Welch 	 
	 	 	Title:  	Chief Executive
Officer 	 
	 

 

 

	 	 	 	 	 
	 	JACOBS PRIVATE EQUITY, LLC,

for itself and on behalf of each of the

other Initial Holders listed on Schedule I

hereto

 	 
	 	by  	                           /s/ Bradley S. Jacobs
 	 
	 	 	Name:  	Bradley S. Jacobs 	 
	 	 	Title:  	Managing Member 	 
	 

 

 

SCHEDULE I

INITIAL HOLDERS

Albert J. Jacobs Trust

Fred Bratman

Ronald B. Brown

Sharon Jacobs Brown

Charles Cahn III

Charlotte S. Jacobs Trust

Eli Dominitz

Martin Flumenbaum

Ben Gordon

William Harrison

Jacobs Private Equity, LLC

Theodore R. Jacobs

Adrian P. Kingshott

Michael J. Kneeland

James J. Martell

Michael G. Jesselson 4/8/71 Trust

Michael G. Jesselson 12/18/80 Trust

Michael S. Nervick Revocable Trust dated 5/26/05

Robert Nardone

Jay Novik

Lucy M. Peterson

Springer Wealth Management LLC

Taha, LLC

Christopher Tsai

Tong Yu

XPO Partners LLC

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