Document:

exh102_082611.htm

Exhibit 10.2

 

DISBURSEMENT REQUEST AND AUTHORIZATION

 

	
Principal

	
Loan Date

	
Maturity

	
Loan No

	
Call / Coll

	
Account

	
Officer

	
Initials

	
$1,906,781.18

	
07-11-2011

	
09-09-2011

	
1089922418

	
410 / 4

	
MACC PE00

	
755

	  
	
References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	
 

Borrower:

	
 

MACC PRIVATE EQUITIES INC.

101 2ND ST SE SUITE 800

CEDAR RAPIDS, IA 52401-1219

 

	
 

Lender:

	
 

CEDAR RAPIDS BANK AND TRUST COMPANY

500 1ST AVENUE NE STE 100

CEDAR RAPIDS, IA 52401

 

 

LOAN TYPE.  This is a Variable Rate Nondisclosable Loan to a Corporation for $1,906,781.18 due on September 9, 2011.  This is a secured renewal loan.

 

PRIMARY PURPOSE OF LOAN.  The primary purpose of this loan is for:

 

	 	 o	Personal, Family, or Household Purposes or Personal Investment.	 
	 	 	 	 
	 	 o	Business (Including Real Estate Investment).	 

  

SPECIFIC PURPOSE.  The specific purpose of this loan is: Origianl purpose to refinance SBA debentures.

 

DISBURSEMENT INSTRUCTIONS.  Borrower understands that no loan proceeds will be disbursed until all of Lender’s conditions for making the loan have been satisfied.  Please disburse the loan proceeds of $1,906,781.18 as follows:

 

	 	
Other Disbursements:

	  	
$1,906,781.18

	 
	 	
$1,906,781.18 Amount disbursed

	  	  	 
	 	  	  	  	 
	 	
Note Principal:

	  	
$1,906,781.18

	 
	 	  	  	  	 

CHARGES PAID IN CASH.  Borrower has paid or will pay in cash as agreed the following charges:

 

	 	
Prepaid Finance Charges Paid in Cash:

	  	
$0.00

	 
	 	  	  	  	 
	 	
Other Charges Paid in Cash:

	  	
$500.00

	 
	 	
$500.00 documentation Fee

	  	  	 
	 	  	  	  	 
	 	
Total Charges Paid in Cash:

	  	
$500.00

	 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS DISBURSEMENT REQUEST AND AUTHORIZATION AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT.

 

FINANCIAL CONDITION.  BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER’S FINANCIAL CONDITION AS DISCLOSED IN BORROWER’S MOST RECENT FINANCIAL STATEMENT TO LENDER.  THIS AUTHORIZATION IS DATED JULY 11, 2011.

 

BORROWER:

	
MACC PRIVATE EQUITIES, INC.

	  	  	  	  	  
	  	  	  	  	  
	
By:

	/s/ David R. Schroder	  	
By:

	/s/ Robert A. Comey	  
	  	
DAVID R SCHRODER, President/Secretary of MACC

	  	  	
Robert A Comey, Executive V. P./CFO of MACC

	  	
PRIVATE EQUITIES INC.

	  	  	
PRIVATE EQUITIES INC.exh103_082611.htm

Exhibit 10.3

 

NOTICE OF FINAL AGREEMENT

 

 

	
Principal

	
Loan Date

	
Maturity

	
Loan No

	
Call / Coll

	
Account

	
Officer

	
Initials

	
$1,906,781.18

	
07-11-2011

	
09-09-2011

	
1089922418

	
410 / 4

	
MACC PE00

	
755

	  
	
References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	
 

Borrower:

	
 

MACC PRIVATE EQUITIES INC.

101 2ND ST SE SUITE 800

CEDAR RAPIDS, IA 52401-1219

 

	
 

Lender:

	
 

CEDAR RAPIDS BANK AND TRUST COMPANY

500 1ST AVENUE NE STE 100

CEDAR RAPIDS, IA 52401

 

 

	 	 	 	 	 	 
	 	 	  

IMPORTANT: READ BEFORE SIGNING.  THE TERMS OF THE LOAN AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.  NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THE WRITTEN LOAN AGREEMENT MAY BE LEGALLY ENFORCED.  BORROWER MAY CHANGE THE TERMS OF THE LOAN AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.

 

As used in this Notice, the following terms have the following meanings:

 

Loan.  The term “Loan” means the following described loan: a Variable Rate Nondisclosable Loan to a Corporation for $1,906,781.18 due on September 9, 2011.  This is a secured renewal loan.

 

Loan Agreement.  The term “Loan Agreement” means one or more promises, promissory notes, agreements, undertakings, security agreements, deeds of trust or other documents, or commitments, or any combination of those actions or documents, relating to the Loan, including without limitation the following:

 

LOAN DOCUMENTS

Corporate Resolution:  MACC PRIVATE EQUITIES INC.                                                                                                Change In Terms Agreement

Disbursement Request and Authorization                                                                                        Notice of Final Agreement

 

Parties.  The term “Parties” means CEDAR RAPIDS BANK AND TRUST COMPANY and any and all entities or individuals who are obligated to repay the loan or have pledged property as security for the Loan, including without limitation the following:

	 	 
	 	 	 	 	 	 

 

Each Party who signs below, other than CEDAR RAPIDS BANK AND TRUST COMPANY, acknowledges, represents, and warrants to CEDAR RAPIDS BANK AND TRUST COMPANY that it has received, read and understood this Notice of Final Agreement.  This Notice is dated July 11, 2011.

 

BORROWER:

	
MACC PRIVATE EQUITIES, INC.

	  	  	  	  	  
	
By:

	/s/ David R. Schroder	  	
By:

	/s/ Robert A. Comey	  
	  	
DAVID R SCHRODER, President/Secretary of MACC

	  	  	
Robert A Comey, Executive V. P./CFO of MACC

	  	
PRIVATE EQUITIES INC.

	  	  	
PRIVATE EQUITIES INC.

	  	  	  	  	  
	
LENDER:

	  	  	  

 

	
CEDAR RAPIDS BANK AND TRUST COMPANY

	  	  	  

 

	
X

	/s/ John Hall	  	  	  
	  	
John Hall, Asst. Vice PresidentExhibit 10.11

Exhibit 10.11

Execution Version

AGREEMENT AND PLAN OF MERGER

Among

Roadrunner Transportation Systems, Inc.

Prime Acquisition Corp.

Prime Logistics Corp.

and

the other parties named herein

August 23, 2011

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	 
	 	 	 	 
	ARTICLE I — THE MERGER
	 	 	1	 
	 
	 	 	 	 
	Section 1.1. The Merger
	 	 	1	 
	Section 1.2. Effective Time of the Merger
	 	 	1	 
	Section 1.3. Effect of Merger
	 	 	1	 
	Section 1.4. Certificate of Incorporation
	 	 	1	 
	Section 1.5. Bylaws
	 	 	1	 
	Section 1.6. Directors
	 	 	1	 
	Section 1.7. Officers
	 	 	2	 
	Section 1.8. Shares of Merger Sub
	 	 	2	 
	Section 1.9. Effect on Company Preferred Stock
	 	 	2	 
	Section 1.10. Effect on Company Common Stock
	 	 	2	 
	Section 1.11. Effect on Company Options
	 	 	3	 
	Section 1.12. Dissenting Shares
	 	 	3	 
	Section 1.13. Withholding Rights
	 	 	4	 
	Section 1.14. Procedure to Exchange Shares
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II — CLOSING
	 	 	5	 
	 
	 	 	 	 
	Section 2.1. Closing
	 	 	5	 
	Section 2.2. Delivery of Estimates; Calculation of Merger Consideration and Per Share Merger
Consideration
	 	 	5	 
	Section 2.3. Payment of Preferred Stock Payment
	 	 	6	 
	Section 2.4. Payment of Merger Consideration
	 	 	6	 
	Section 2.5. Payment of Option Merger Consideration
	 	 	6	 
	Section 2.6. True Up of Estimated Merger Consideration
	 	 	6	 
	Section 2.7. Payment of Funded Indebtedness; Unpaid Company Transaction Expenses
	 	 	7	 
	Section 2.8. Closing Deliveries
	 	 	8	 
	Section 2.9. Termination in Absence of Closing
	 	 	8	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE OWNERS
	 	 	9	 
	 
	 	 	 	 
	Section 3.1. Existence and Qualification
	 	 	9	 
	Section 3.2. Authority, Approval and Enforceability
	 	 	9	 
	Section 3.3. Capitalization and Business Records
	 	 	10	 
	Section 3.4. No Company Defaults or Consents
	 	 	10	 
	Section 3.5. No Proceedings
	 	 	11	 
	Section 3.6. Employee Benefit Matters
	 	 	11	 
	Section 3.7. Financial Statements
	 	 	13	 
	Section 3.8. No Undisclosed Liabilities; Accounts Receivable; Liens
	 	 	13	 
	Section 3.9. Absence of Certain Changes
	 	 	14	 
	Section 3.10. Compliance with Laws
	 	 	15	 
	Section 3.11. Litigation
	 	 	15	 
	Section 3.12. Real Property
	 	 	15	 
	Section 3.13. Contracts
	 	 	16	 
	Section 3.14. Insurance
	 	 	17	 
	Section 3.15. Intangible Rights
	 	 	17	 
	Section 3.16. Equipment and Other Tangible Property
	 	 	18	 
	Section 3.17. Permits; Environmental Matters
	 	 	18	 
	Section 3.18. Banks
	 	 	19	 
	Section 3.19. Customers; Relationships
	 	 	19	 
	Section 3.20. Absence of Certain Business Practices
	 	 	19	 
	Section 3.21. Authorizations
	 	 	19	 
	Section 3.22. Transactions With Affiliates
	 	 	19	 
	Section 3.23. Brokers
	 	 	20	 

 

-i-

 

TABLE OF CONTENTS

(CONT.)

	 	 	 	 	 
	 	 	Page	 
	Section 3.24. Owner Organization and Authority
	 	 	20	 
	Section 3.25. Owner Authorization and Enforceability
	 	 	20	 
	Section 3.26. No Owner Defaults or Consents
	 	 	20	 
	Section 3.27. Owner Title to Securities
	 	 	20	 
	Section 3.28. Investment Representations
	 	 	20	 
	Section 3.29. No Other Representations and Warranties
	 	 	21	 
	 
	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER AND MERGER SUB
	 	 	22	 
	 
	 	 	 	 
	Section 4.1. Existence and Qualification
	 	 	22	 
	Section 4.2. Authority, Approval and Enforceability
	 	 	22	 
	Section 4.3. No Default or Consents
	 	 	22	 
	Section 4.4. No Proceedings
	 	 	22	 
	Section 4.5. Brokers or Finders’ Fees
	 	 	22	 
	Section 4.6. Parent SEC Filings
	 	 	23	 
	Section 4.7. No Undisclosed Liabilities
	 	 	23	 
	Section 4.8. Absence of Certain Changes or Events
	 	 	23	 
	Section 4.9. Tax Matters
	 	 	23	 
	Section 4.10. Financial Ability to Perform
	 	 	23	 
	 
	 	 	 	 
	ARTICLE V OBLIGATIONS PRIOR TO CLOSING
	 	 	24	 
	 
	 	 	 	 
	Section 5.1. Parent’s Access to Information and Properties
	 	 	24	 
	Section 5.2. Company’s Conduct of Business and Operations
	 	 	24	 
	Section 5.3. General Restrictions
	 	 	24	 
	Section 5.4. Notice Regarding Changes
	 	 	26	 
	Section 5.5. Ensure Conditions Met
	 	 	26	 
	Section 5.6. Employee Matters
	 	 	26	 
	Section 5.7. Cooperation with Respect to Financing
	 	 	26	 
	Section 5.8. No Shop
	 	 	27	 
	Section 5.9. Hart-Scott-Rodino
	 	 	27	 
	Section 5.10. Notice of Appraisal Rights and Action by Written Consent
	 	 	27	 
	 
	 	 	 	 
	ARTICLE VI CONDITIONS TO THE PARTIES’ OBLIGATIONS
	 	 	27	 
	 
	 	 	 	 
	Section 6.1. Conditions to Obligations of the Company
	 	 	27	 
	Section 6.2. Conditions to Obligations of Parent
	 	 	28	 
	 
	 	 	 	 
	ARTICLE VII POST-CLOSING OBLIGATIONS
	 	 	29	 
	 
	 	 	 	 
	Section 7.1. Further Assurances
	 	 	29	 
	Section 7.2. Publicity
	 	 	29	 
	Section 7.3. Post-Closing Indemnity
	 	 	29	 
	Section 7.4. Non-Competition, Non-Solicitation and Non-Disclosure
	 	 	30	 
	Section 7.5. Stock Exchange Listing; SEC Reports
	 	 	32	 
	 
	 	 	 	 
	ARTICLE VIII TAX MATTERS
	 	 	32	 
	 
	 	 	 	 
	Section 8.1. Representations and Obligations Regarding Taxes
	 	 	32	 
	Section 8.2. Indemnification for Taxes
	 	 	34	 
	Section 8.3. Additional Agreements
	 	 	36	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	37	 
	 
	 	 	 	 
	Section 9.1. Limitation on Liability
	 	 	37	 
	Section 9.2. [Intentionally Omitted]
	 	 	39	 
	Section 9.3. Brokers
	 	 	39	 
	Section 9.4. Costs and Expenses
	 	 	39	 
	Section 9.5. Notices
	 	 	39	 
	Section 9.6. Dispute Resolution; Waiver of Jury Trial
	 	 	41	 
	Section 9.7. Representations and Warranties
	 	 	41	 

 

-ii-

 

TABLE OF CONTENTS

(CONT.)

	 	 	 	 	 
	 	 	Page	 
	Section 9.8. Entire Agreement; Amendments and Waivers
	 	 	41	 
	Section 9.9. Binding Effect and Assignment
	 	 	42	 
	Section 9.10. Remedies
	 	 	42	 
	Section 9.11. Exhibits and Schedules
	 	 	42	 
	Section 9.12. Multiple Counterparts
	 	 	42	 
	Section 9.13. References and Construction
	 	 	42	 
	Section 9.14. Survival
	 	 	42	 
	Section 9.15. Attorneys’ Fees
	 	 	42	 
	Section 9.16. Risk of Loss
	 	 	42	 
	Section 9.17. Choice of Law; Venue
	 	 	43	 
	Section 9.18. Conflicts and Privilege
	 	 	43	 
	 
	 	 	 	 
	ARTICLE X OWNERS’ REPRESENTATIVE
	 	 	43	 
	 
	 	 	 	 
	Section 10.1. Appointment of Owners’ Representatives
	 	 	43	 
	Section 10.2. Authority
	 	 	43	 
	Section 10.3. Reliance
	 	 	44	 
	Section 10.4. Resignation and Removal
	 	 	44	 
	Section 10.5. No Liability
	 	 	44	 
	Section 10.6. Expenses
	 	 	44	 
	 
	 	 	 	 
	ARTICLE XI DEFINITIONS
	 	 	45	 
	 
	 	 	 	 
	Section 11.1. Affiliate
	 	 	45	 
	Section 11.2. Affiliated Group
	 	 	45	 
	Section 11.3. Available Cash
	 	 	45	 
	Section 11.4. Benefit Program or Agreement
	 	 	45	 
	Section 11.5. Bonus Plans
	 	 	45	 
	Section 11.6. Business Day
	 	 	45	 
	Section 11.7. Class A Common Stock
	 	 	45	 
	Section 11.8. Class B Common Stock
	 	 	45	 
	Section 11.9. Code
	 	 	45	 
	Section 11.10. Company Capital Stock
	 	 	45	 
	Section 11.11. Company Common Stock
	 	 	45	 
	Section 11.12. Competing Business
	 	 	45	 
	Section 11.13. Confidential Information
	 	 	46	 
	Section 11.14. Contracts
	 	 	46	 
	Section 11.15. Damages
	 	 	46	 
	Section 11.16. Equity Holder
	 	 	46	 
	Section 11.17. Exchange Ratio
	 	 	46	 
	Section 11.18. Funded Indebtedness
	 	 	46	 
	Section 11.19. GAAP
	 	 	46	 
	Section 11.20. Governmental Authorities
	 	 	47	 
	Section 11.21. Greenfield Competing Business
	 	 	47	 
	Section 11.22. Hazardous Material
	 	 	47	 
	Section 11.23. Knowledge of the Company
	 	 	47	 
	Section 11.24. Legal Requirements
	 	 	47	 
	Section 11.25. Management Owners
	 	 	47	 
	Section 11.26. Material Adverse Effect
	 	 	47	 
	Section 11.27. Non-Management Owner
	 	 	47	 
	Section 11.28. Option
	 	 	47	 
	Section 11.29. Option Plan
	 	 	48	 
	Section 11.30. Parent Common Stock
	 	 	48	 
	Section 11.31. Parent Common Stock Market Price
	 	 	48	 
	Section 11.32. Permits
	 	 	48	 
	Section 11.33. Permitted Liens
	 	 	48	 
	Section 11.34. Person
	 	 	48	 

 

-iii-

 

TABLE OF CONTENTS

(CONT.)

	 	 	 	 	 
	 	 	Page	 
	Section 11.35. Properties
	 	 	48	 
	Section 11.36. Proportionate Share
	 	 	48	 
	Section 11.37. Regulations
	 	 	48	 
	Section 11.38. Series A Preferred Stock
	 	 	48	 
	Section 11.39. Subsidiary
	 	 	48	 
	Section 11.40. Tax
	 	 	48	 
	Section 11.41. Tax Return
	 	 	48	 
	Section 11.42. Trade Secrets
	 	 	49	 
	Section 11.43. Unpaid Company Expenses
	 	 	49	 
	Section 11.44. Used
	 	 	49	 
	Section 11.45. Vested Option
	 	 	49	 
	Section 11.46. Working Capital
	 	 	49	 

 

-iv-

 

	 	 	 
	LIST OF SCHEDULES

	 
	 	 
	Schedule 1

	 	Election by Owners
	Schedule 2.7

	 	Funded Indebtedness
	Schedule 3.1

	 	Qualifications as Foreign Corporation
	Schedule 3.3(a)

	 	Capitalization
	Schedule 3.3(b)

	 	Options
	Schedule 3.3(c)

	 	Subsidiaries
	Schedule 3.4

	 	Company Defaults or Consents
	Schedule 3.6(a)

	 	Employee Arrangements
	Schedule 3.6(c)

	 	Compliance with Employee Benefit Plans
	Schedule 3.6(f)

	 	Employees
	Schedule 3.7

	 	Financial Statements
	Schedule 3.8(a)

	 	Liabilities
	Schedule 3.8(b)

	 	Accounts Receivable
	Schedule 3.8(c)

	 	Ownership of Properties
	Schedule 3.9(a)

	 	Absence of Changes
	Schedule 3.9(b)

	 	Certain Actions
	Schedule 3.10

	 	Compliance with Laws
	Schedule 3.11

	 	Litigation
	Schedule 3.12

	 	Leased Premises
	Schedule 3.13

	 	Contracts
	Schedule 3.14

	 	Insurance
	Schedule 3.15

	 	Intangible Rights
	Schedule 3.16(a)

	 	Equipment and Other Tangible Property
	Schedule 3.16(b)

	 	Vehicles
	Schedule 3.17(a)

	 	Permits
	Schedule 3.17(b)

	 	Environmental Matters
	Schedule 3.17(c)

	 	Noncompliance with Environmental Laws
	Schedule 3.18

	 	Banks, Accounts and Authorized Signatories
	Schedule 3.19

	 	Customers
	Schedule 3.21

	 	Authorizations
	Schedule 3.22

	 	Affiliate Transactions
	Schedule 3.27

	 	Owner Title to Securities
	Schedule 6.2(f)

	 	Terminations and Waivers
	Schedule 7.4(a)(ii)

	 	Specified Competitive Businesses
	Schedule 8.1

	 	Tax Matters
	Schedule 11.5

	 	Bonus Plans
	Schedule 11.36

	 	Proportionate Share
	Schedule 11.46

	 	Working Capital
	 
	 	 
	LIST OF EXHIBITS
	 
	 	 
	Exhibit A

	 	Opinion of Company Counsel

 

 

 

AGREEMENT AND PLAN OF MERGER

This AGREEMENT AND PLAN OF MERGER (the “Agreement”) is made and entered into as of
August 23, 2011, by and among Roadrunner Transportation Systems, Inc., a Delaware corporation
(“Parent”); Prime Acquisition Corp., a Delaware corporation and wholly owned subsidiary of
Parent (“Merger Sub”); Prime Logistics Corp., a Delaware corporation (the
“Company”); and each of the stockholders of the Company listed on the signature pages
hereto (each individually a “Owner” and collectively the “Owners”).

Recitals

A. The boards of directors of Parent, Merger Sub and the Company have determined that it is in
the best interests of their companies and shareholders for Parent to acquire the Company through
the statutory merger of Merger Sub with and into the Company, with the Company as the surviving
corporation (the “Merger”).

B. By executing this Agreement, the parties intend to establish the terms and conditions of
the Merger and to make certain representations, warranties and agreements in connection therewith.

Agreement

NOW, THEREFORE, in consideration of the premises and of the mutual covenants contained herein,
the parties agree as follows:

ARTICLE I — THE MERGER

Section 1.1. The Merger. Upon the terms and subject to the conditions hereof, at the
Effective Time (defined in Section 1.2), Merger Sub shall be merged with and into the
Company and the separate existence of Merger Sub shall thereupon cease, and the Company shall
continue as the surviving corporation in the Merger (the “Surviving Corporation”) under the
laws of the State of Delaware.

Section 1.2. Effective Time of the Merger. Subject to the terms and conditions
hereof, a Certificate of Merger (the “Certificate of Merger”) shall be filed with the
Secretary of State of the State of Delaware on the Closing Date in accordance with the provisions
of the Delaware General Corporation Law (the “DGCL”). The Merger shall be effective at the
time at which the Certificate of Merger is accepted for filing by the Secretary of State of the
State of Delaware (the “Effective Time”).

Section 1.3. Effect of Merger. The Merger shall, from and after the Effective Time,
have all the effects provided herein, in the Certificate of Merger and in the applicable provisions
of the DGCL.

Section 1.4. Certificate of Incorporation. The certificate of incorporation of Merger
Sub as in effect immediately prior to the Effective Time shall be the certificate of incorporation
of the Surviving Corporation, until thereafter changed or amended as provided therein or by
applicable law, except that the name of Merger Sub in Article I thereof shall be changed to “Prime
Logistics Corp.”

Section 1.5. Bylaws. The bylaws of Merger Sub as in effect immediately prior to the
Effective Time shall be the bylaws of the Surviving Corporation, until thereafter changed or
amended as provided therein or by applicable law.

Section 1.6. Directors. The directors of Merger Sub immediately prior to the
Effective Time shall be the directors of the Surviving Corporation, each to hold office in
accordance with the certificate of incorporation and bylaws of the Surviving Corporation until the
earlier of their resignation or removal or until their respective successors are duly elected and
qualified, in any case in the manner provided in the certificate of incorporation and bylaws of the
Surviving Corporation and in accordance with applicable law.

 

1

 

Section 1.7. Officers. The officers of the Merger Sub immediately prior to the
Effective Time shall be the officers of the Surviving Corporation, each to hold office in
accordance with the certificate of incorporation and bylaws of the Surviving Corporation until the
earlier of their resignation or removal or until their respective successors are duly elected and
qualified, in any case in the manner provided in the certificate of incorporation and bylaws of the
Surviving Corporation and in accordance with applicable law.

Section 1.8. Shares of Merger Sub. As of the Effective Time, by virtue of the Merger
and without any action on the part of any Person, each issued and outstanding share of common stock
of Merger Sub shall be converted and become one fully paid and nonassessable share of common stock,
par value $0.01 per share, of the Surviving Corporation.

Section 1.9. Effect on Company Preferred Stock.

(a) Treasury Shares. As of the Effective Time, by virtue of the Merger and without
any action on the part of any Person, each share of preferred stock of the Company that is held in
the Treasury of the Company shall automatically be cancelled and retired and shall cease to exist,
and no consideration shall be delivered in exchange therefor.

(b) Preferred Stock Payment. As of the Effective Time, by virtue of the Merger and
without any action on the part of any Person, and subject to Section 1.12, each share of
Series A Preferred Stock issued and outstanding shall be converted into the right to receive from
the Surviving Corporation, in the manner set forth in Section 1.14 hereof, an amount in
cash equal to the sum of (i) $1,000.00 plus (ii) the amount of accrued but unpaid dividends on such
share of Series A Preferred Stock at the Effective Time, rounded down to the nearest $0.01.

Section 1.10. Effect on Company Common Stock.

(a) Treasury Shares. As of the Effective Time, by virtue of the Merger and without
any action on the part of any Person, each share of Company Common Stock that is held in the
treasury of the Company shall automatically be cancelled and retired and shall cease to exist, and
no consideration shall be delivered in exchange therefor.

(b) Shares Held by Parent or Merger Sub. As of the Effective Time, by virtue of the
Merger and without any action on the part of any Person, each share of Company Common Stock that is
owned by Parent or Merger Sub, if any, shall automatically be cancelled and retired and shall cease
to exist and no consideration shall be delivered in exchange therefor.

(c) Election as to Company Common Stock. Each outstanding share of Company Common
Stock not otherwise cancelled pursuant to Section 1.10(a) and 1.10(b) shall, as of
the Effective Time, no longer be outstanding and shall automatically be cancelled and shall cease
to exist, and each holder of such shares of outstanding Company Common Stock shall cease to have
any rights with respect thereto, except such holder shall be given the following option (the
“Election”):

(i) to elect to receive cash in an amount equal to (A) the number of shares of Company Common
Stock owned by such holder, multiplied by (B) the Per Share Merger Consideration
(such election, the “All Cash Election”); or

(ii) to elect to convert a portion of such holder’s shares of Company Common Stock (the
“Stock Portion”) into the right to receive such number of shares of Parent Common Stock
equal to the number of shares of Company Common Stock in the Stock Portion multiplied by the
Exchange Ratio, and the remainder of such holder’s aggregate number of shares of Company Common
Stock (the “Cash Portion”) shall be converted into the right to receive cash in an amount
equal to (A) the number of shares of Company Common Stock in the Cash Portion, multiplied
by (B) the Per Share Merger Consideration (such election, the “Mixed Election”)
provided that:

A) Fractional shares of Parent Common Stock will not be issued and cash will be paid in lieu
thereof as provided in Section 1.10(e); and

 

2

 

B) In no event shall, in the aggregate, more than twenty percent (20%) of Company Common Stock
issued and outstanding immediately prior to the Effective Time be converted into and become shares
of Parent Common Stock.

(d) Schedule of Owner Elections. Schedule 1 hereto sets forth opposite the name of
each holder of Company Common Stock the Election made pursuant to Section 1.10(c) by such
holder. If a holder of Company Common Stock entitled to make an Election is not included on
Schedule 1 hereto, all of such holder’s shares of Company Common Stock shall be converted
into the right to receive cash in an amount equal to the Per Share Merger Price.

(e) Fractional Shares. No certificates or scrip representing less than one (1) share
of Parent Common Stock shall be issued upon the surrender for exchange of a certificate or
certificates which immediately prior to the Effective Time represented outstanding shares of
Company Common Stock. In lieu of any such fractional share, each holder of such shares who would
otherwise have been entitled to a fraction of a share of Parent Common Stock, upon surrender of
certificates representing shares of Company Common Stock for exchange, shall be paid upon such
surrender cash (without interest) in an amount equal to such fraction multiplied by the Parent
Common Stock Market Price, rounded down to the nearest $0.01.

Section 1.11. Effect on Company Options.

(a) Subject to Section 1.13, immediately prior to the Effective Time, by virtue of the
Merger and without any action on the part of the holder of any Vested Option (an “Option
Holder”), each Vested Option shall be cancelled in exchange for the right to receive a single
lump sum cash payment equal to the product of (i) the number of shares of Company Common Stock
issuable upon exercise of such Vested Option, multiplied by (ii) the excess, if any, of (x) the Per
Share Merger Consideration over (y) the per share exercise price under such Vested Option (the
“Per Share Option Merger Consideration,” and in the aggregate, the “Option Merger
Consideration”). The Option Merger Consideration shall be treated as compensation by the
Company and the Company shall be entitled to deduct and withhold applicable federal or state
withholding tax.

(b) The Company shall (i) certify in writing to Parent within two (2) Business Days prior to
the Closing Date (x) the name of each Option Holder, (y) the number of Vested Options such Option
Holder owns, and (z) the extent to which the “Investor IRR” (as defined in the Option Plan) for
such Vested Options will be met after giving effect to the Merger based on the estimated Per Share
Merger Consideration set forth in the Closing Payment Certificate contemplated by Section
2.2(a), (ii) take all necessary action so that all Options that are not Vested Options are
cancelled prior to the Closing and no longer represent the right to purchase Company Common Stock
or the right to receive any other consideration or have any other further force or effect, and
(iii) promptly advise Parent in writing if and to the extent any Vested Options are exercised or
non-vested Options are terminated prior to the Closing.

Section 1.12. Dissenting Shares. Notwithstanding anything in this Agreement to the
contrary, any issued and outstanding shares of the Company Capital Stock held by a Person (a
“Dissenting Stockholder”) who shall not have voted in favor of the Merger or consented
thereto in writing and who shall have properly demanded appraisal in accordance with the provisions
of Section 262 of the DGCL concerning the right of holders of the Company Capital Stock to dissent
from the Merger and require appraisal of their shares (“Dissenting Shares”) shall not be
converted as described in this Article I but shall become the right to receive such
consideration as may be determined to be due to such Dissenting Stockholder pursuant to Section 262
of the DGCL. If, after the Effective Time, such Dissenting Stockholder withdraws his or its demand
for appraisal or fails to perfect or otherwise loses his or its right of appraisal, in any case
pursuant to the DGCL, his/her/its Dissenting Shares shall be deemed to be converted as of the
Effective Time into the right to receive cash equal in value to the Merger Consideration to which
such Dissenting Shareholder is entitled under Section 1.9 and Section 1.10(c)(i).
The Company shall give Parent (i) prompt notice of any demands for appraisal of shares received by
the Company, and (ii) the opportunity to participate with the Company (or, subsequent to the
Effective Time, the Owners’ Representative) in all negotiations and proceedings with respect to any
such demands. The Company will not voluntarily make any payment with respect to any demands for
appraisal and will not, except with the prior written consent of Parent (which shall not be
unreasonably withheld or delayed), settle or offer to settle any such demands. By execution of
this Agreement, each Owner hereby waives his or its rights under Section 262 of the DGCL.

 

3

 

Section 1.13. Withholding Rights. Each of the Company, the Surviving Corporation and
Parent shall be entitled to deduct and withhold from the consideration otherwise payable pursuant
to this Agreement to any Equity Holder such amounts as are required to be deducted and withheld
with respect to the making of such payment under the Code or any provisions of applicable state,
local or foreign Tax law. To the extent that amounts are so deducted and withheld by the Company,
the Surviving Corporation or Parent, such deducted and withheld amounts shall be treated for all
purposes of this Agreement as having been paid to the Equity Holder in respect of which such
deduction and withholding was made by the Company, the Surviving Corporation or Parent.

Section 1.14. Procedure to Exchange Shares.

(a) As soon as reasonably practicable after the date of this Agreement, Parent will provide to
each holder of Company Capital Stock of record on the date of this Agreement: (i) a letter of
transmittal in a form reasonably acceptable to the Company (the “Letter of Transmittal”),
and (ii) instructions for effecting the surrender of the certificate(s) representing Company
Capital Stock in exchange for cash payable in the Merger and, if applicable, Parent Common Stock
(including cash in lieu of fractional shares, if any). Any holder of a certificate representing
Company Capital Stock who, at least two (2) Business Days prior to the Closing Date, surrenders
such certificate to the Company for cancellation, together with a duly executed Letter of
Transmittal (copies of which certificates and Letters of Transmittal shall promptly be provided to
Parent), shall be entitled, upon the Closing, to receive from Parent in exchange therefor cash
payable pursuant to the Merger and, if applicable, the shares of Parent Common Stock (including
cash in lieu of fractional shares, if any), which shall be reflected in book entry form on Parent’s
stock records, that such holder is entitled to receive pursuant to this Agreement. Any holder of a
certificate representing Company Capital Stock who, after the date that is two (2) Business Days
prior to the Closing Date, surrenders such certificate to the Company for cancellation, together
with a duly executed Letter of Transmittal, shall be entitled, as soon as practicable after the
receipt thereof, and in no event later than five (5) Business Days after receipt thereof, to
receive from Parent in exchange therefor cash payable pursuant to the Merger and, if applicable,
the shares of Parent Common Stock (including cash in lieu of fractional shares, if any) into which
the shares of Company Capital Stock theretofore represented by such certificate shall have been
converted pursuant to this Agreement. To facilitate the foregoing, in the event that, as of the
Effective Time, any holder of Company Capital Stock of record as of the Effective Time shall not
have delivered to the Company a duly executed Letter of Transmittal, the Surviving Corporation
shall, as soon as reasonably practicable after the Effective Time, mail to each such stockholder a
Letter of Transmittal and such related instructions.

(b) No interest will be paid or will accrue on the cash payable upon the surrender of any
certificate representing Company Capital Stock. If payment is to be made to a Person other than
the Person in whose name the certificate so surrendered is registered, it shall be a condition of
payment that such certificate shall be properly endorsed or otherwise in proper form for transfer
and that the Person requesting such payment shall pay any transfer or other Taxes required by
reason of such certificate or establish to the satisfaction of the Company that such Tax has been
paid or is not applicable. Upon payment for a surrendered certificate representing Company Capital
Stock in accordance with this Section 1.14, such certificate shall forthwith be cancelled.
Until surrendered and paid for as contemplated by this Section 1.14, each certificate
(other than certificates representing Dissenting Shares and certificates representing any shares of
Series A Preferred Stock or Company Common Stock to be cancelled or retired pursuant to or
Section 1.9(a), Section 1.10(a), or Section 1.10(b)) shall be deemed at any
time after the Effective Time to represent only the right to receive upon such surrender the amount
of cash or stock, without interest, into which the shares of Company Capital Stock theretofore
represented by such certificate shall have been converted pursuant to this Agreement.

(c) No dividends or other distributions declared after the Effective Time with respect to
Parent Common Stock shall be paid to the holder of any unsurrendered certificate formerly
representing shares of Company Common Stock until such holder shall surrender such certificate in
accordance with this Section 1.14. After the surrender of a certificate in accordance with
this Section 1.14, the record holder thereof shall be entitled to receive any such
dividends or other distributions, without any interest thereon, which theretofore have become
payable with respect to shares of Parent Common Stock.

 

4

 

(d) At the Effective Time, the stock transfer books of Company shall be closed and no transfer
of Company Common Stock shall thereafter be made or recognized. If, after the Effective Time,
certificates representing such shares are presented for transfer, they shall be cancelled and
exchanged for the Merger Consideration as provided in this Agreement.

(e) In the event any certificate shall have been lost, stolen, destroyed or mutilated, upon
the making of an affidavit of that fact by the Person claiming such certificate to be lost, stolen,
destroyed or mutilated and, if required by Parent, the making of an indemnity agreement in a form
reasonably requested by Parent and/or the posting by such Person of a bond in such amount as Parent
may reasonably direct as indemnity against any claim that may be made against it with respect to
such certificate, Parent will issue in exchange for such lost, stolen, destroyed or mutilated
certificate the Merger Consideration deliverable in respect thereof pursuant to this Agreement.

ARTICLE II — CLOSING

Section 2.1. Closing. Unless otherwise agreed by Parent and the Company, subject to
the conditions stated in Article VI of this Agreement, the closing of the transactions
contemplated hereby (the “Closing”) shall be held at 9:00 a.m., local time, on August 31,
2011, or, if the conditions set forth in Article VI have not been satisfied or waived on
such date, on the fifth (5th) Business Day after all such conditions shall have been satisfied or
waived. The date upon which the Closing occurs is hereinafter referred to as the “Closing
Date.” The Closing shall be deemed completed as of the Effective Time. The Closing Date
Working Capital shall be calculated as of 11:59 p.m. on the Closing Date.

Section 2.2. Delivery of Estimates; Calculation of Merger Consideration and Per Share
Merger Consideration. 

(a) The Company shall provide to Parent, at least two (2) Business Days prior to the Closing
Date, a certificate (the “Closing Payment Certificate”) setting forth its good faith
estimates of each of the following: (i) Available Cash of the Company and the Subsidiary as of the
Closing Date, (ii) the Funded Indebtedness of the Company and the Subsidiary, as of the Closing
Date, (iii) the Company’s Working Capital as of the Closing Date, (iv) the Per Share Merger
Consideration and amounts to be paid hereunder to each Equity Holder and (v) Unpaid Company
Expenses. Parent and its agents shall be entitled to review the Closing Payment Certificate and
any working papers, trial balances or similar materials relating thereto prepared by the Company or
its agents.

(b) For purposes of this Agreement, “Merger Consideration” means an amount equal to
the sum of (i) Ninety-Seven Million Five Hundred Thousand Dollars ($97,500,000), minus
(ii) the amount of the Funded Indebtedness of the Company and the Subsidiary as of the Closing, if
any, plus (iii) the amount of the Available Cash of the Company and the Subsidiary as of
the Closing, minus (iv) the excess, if any, of $1,200,000 over the Company’s Working
Capital as of the Closing Date, plus (v) the excess, if any, of the Company’s Working
Capital as of Closing Date over $1,800,000, minus (vi) Unpaid Company Expenses, subject to
further adjustment as provided in Section 7.3.

(c) For purposes of this Agreement, “Per Share Merger Consideration” means the
quotient of (i) the sum of (a) the aggregate Merger Consideration, less (b) the aggregate amount
paid pursuant to Section 1.9, plus (c) the aggregate exercise price of all Vested
Options outstanding immediately prior to the Effective Time, divided by (ii) the sum of (x)
the shares of Company Common Stock issued and outstanding immediately prior to the Effective Time,
plus (y) the shares of Company Common Stock issuable upon the exercise of all Vested Options
outstanding immediately prior to the Effective Time, rounded down to the nearest $0.01.

 

5

 

Section 2.3. Payment of Preferred Stock Payment. Upon the Closing, Parent shall pay
(or cause to be paid) to each holder of Series A Preferred Stock the cash into which such holder’s
shares of Series A Preferred Stock shall have been converted pursuant to this Agreement against
delivery of a duly executed Letter of Transmittal and surrender of the related certificates
representing Series A Preferred Stock for cancelation, all as more fully set forth in
Section 1.14. Each such payment shall be wired in immediately available funds, to the
account or accounts designated by the respective holder of Series A Preferred Stock in their
respective Letters of Transmittal.

Section 2.4. Payment of Merger Consideration. Subject to Section 2.6, upon
the Closing, Parent shall pay (or cause to be paid) to each holder of Company Capital Stock the
cash and, if applicable, Parent Common Stock (including cash in lieu of fractional shares, if any)
into which such holder’s shares of Company Capital Stock shall have been converted pursuant to this
Agreement against delivery of a duly executed Letter of Transmittal and surrender of the related
certificates representing Company Capital Stock for cancellation, all as more fully set forth in
Section 1.14. Cash shall be wired, in immediately available funds, to the account or
accounts designated by the respective holders of Company Capital Stock in their respective Letters
of Transmittal. Parent Common Stock shall be issued in book entry form in the name of the Person
specified in the Letter of Transmittal.

Section 2.5. Payment of Option Merger Consideration. Subject to Section 2.6,
at the Closing, Parent shall pay (or cause to be paid) to the Company, by wire transfer of
immediately available funds, the Option Merger Consideration, and the Company shall pay to each
Option Holder the Per Share Option Merger Consideration. Such payments shall be subject to all
applicable withholding and employment taxes.

Section 2.6. True Up of Estimated Merger Consideration.

(a) Notwithstanding anything to the contrary in this Agreement, all payments required to be
made pursuant to Section 2.4 and Section 2.5 shall be based upon the estimated Per
Share Merger Consideration reflected in the Closing Payment Certificate.

(b) As soon as practical (and in no event later than thirty (30) days after the Closing Date)
Parent shall cause to be prepared and delivered to Mason Wells Buyout Fund II, Limited Partnership
(the “Owners’ Representative”) its good faith calculation of the Per Share Merger
Consideration, including reasonably detailed calculations of each item in the Closing Payment
Certificate and reasonably detailed schedules and data as may be appropriate to support such
calculations. The Owners’ Representative and its agents shall be entitled to review Parent’s
calculation of the Per Share Merger Consideration and any working papers, trial balances or similar
materials relating thereto prepared by Parent or its accountants.

(c) The following clauses (i) and (ii) set forth the procedures for resolving any disputes
among the parties with respect to the determination of the Per Share Merger Consideration (and, as
a result thereof, the Per Share Option Merger Consideration):

(i) Within thirty (30) days after delivery to the Owners’ Representative of Parent’s
calculation of the Per Share Merger Consideration pursuant to Section 2.6(b), the Owners’
Representative may deliver to Parent a written report (the “Report”) advising Parent either
that the Owners’ Representative (A) agrees with Parent’s calculation of the Per Share Merger
Consideration, or (B) deems that one or more adjustments are required. If Parent shall concur with
the adjustments proposed by the Owners’ Representative, or if Parent shall not object thereto in a
writing delivered to the Owners’ Representative within five (5) Business Days after Parent’s
receipt of the Report, the calculation of the Per Share Merger Consideration set forth in the
Report shall become final and not be subject to further review, challenge or adjustment absent
fraud or manifest error. If the Owners’ Representative does not submit a Report within the thirty
(30) day period provided herein, then the Per Share Merger Consideration as calculated by Parent
shall become final and not subject to further review, challenge or adjustment absent fraud or
manifest error.

 

6

 

(ii) In the event the Owners’ Representative submits a Report and Parent and the Owners’
Representative are unable to resolve the disagreements set forth in such Report within five (5)
Business Days after Parent’s receipt of the Owners’ Representative Report, then such disagreements
shall be referred to PricewaterhouseCoopers LLP or another recognized firm of independent certified
public accountants selected by mutual agreement of the Owners’ Representative and Parent (the
“Settlement Accountants”), and the determinations of the Settlement Accountants with
respect to the Per Share Merger Consideration shall be final and shall not be subject to further
review, challenge or adjustment absent fraud or manifest error. The Owners’ Representative and
Parent shall instruct the Settlement Accountants to use their best efforts to reach a determination
not more than thirty (30) days after such referral.

(iii) Each of the Owners (on the one hand) and Parent (on the other hand) shall pay their or
its own costs and expenses incurred in connection with this Section 2.6. The costs and
expenses of the services of the Settlement Accountants shall be paid by the Owners (in accordance
with each Owner’s Proportionate Share) if (A) the absolute difference between (i) the Per Share
Merger Consideration resulting from the determinations of the Settlement Accountants, and (ii) the
Per Share Merger Consideration reflected in the Report, is greater than (B) the absolute difference
between (i) the Per Share Merger Consideration resulting from the determinations of the Settlement
Accountants, and (ii) the Per Share Merger Consideration reflected in Parent’s deliveries pursuant
to Section 2.6(b); otherwise, such costs and expenses of the Settlement Accountants shall
be paid by Parent.

(d) If the final Per Share Merger Consideration is greater than the estimated Per Share Merger
Consideration reflected in the Closing Payment Certificate, Parent shall cause the Surviving
Corporation to pay to the Equity Holders (in accordance with Section 2.4 and Section
2.5) the excess of (x) the aggregate amounts required to be paid pursuant to Section
2.4 and Section 2.5, over (y) the amounts theretofore paid pursuant to Sections
2.4, 2.5 and 2.6(a). If the final Per Share Merger Consideration is less than
the estimated Per Share Merger Consideration reflected in the Closing Payment Certificate, the
Owners shall pay (in accordance with each Owner’s Proportionate Share) to the Surviving Corporation
the excess of (x) the amounts theretofore paid pursuant to Sections 2.4, 2.5 and
2.6(a), over (y) the aggregate amounts required to be paid pursuant to Section 2.4
and Section 2.5. Payments under this Section 2.6(d) shall be made promptly after
the Per Share Merger Consideration becomes final.

Section 2.7. Payment of Funded Indebtedness; Unpaid Company Transaction Expenses.

(a) The Company represents and warrants to Parent that all Contracts evidencing the Funded
Indebtedness of the Company and the Subsidiary are set forth in Schedule 2.7 hereto. At
least three (3) Business Days prior to the Closing Date, the Company shall provide Parent with
customary pay-off letters (the “Pay-Off Letters”) from all holders of Funded Indebtedness,
if any (which letters shall contain payoff amounts, per diem amounts, wire transfer instructions
and an agreement authorizing the debtor, upon full payment, to file UCC-3 termination statements,
other appropriate releases and an agreement to provide at the Closing, any original promissory
notes or other evidences of indebtedness marked canceled), and make arrangements satisfactory to
Parent for such holders to provide to the Company recordable form lien releases, canceled notes,
trademark and patent assignments and other documents reasonably requested by Parent simultaneously
with the repayment of all such Funded Indebtedness. At the Closing, Parent shall repay, or cause
to be repaid, on behalf of the Company and the Subsidiary, all Funded Indebtedness of the Company
and the Subsidiary outstanding as of the Closing Date, if any, all in accordance with the terms of
the Pay-Off Letters, by wire transfer of immediately available funds to the accounts specified in
such Pay-Off Letters.

(b) At least three (3) Business Days prior to the Closing Date, the Company shall provide
Parent with reasonable evidence of the amount of all Unpaid Company Expenses, acknowledgments by
each applicable obligee with respect thereto, and wire transfer instructions (the “Expense
Acknowledgments”). At the Closing, Parent shall pay, or cause to be paid, on behalf of the
Company and the Subsidiary, all Unpaid Company Expenses by wire transfer of immediately available
funds to accounts specified in the Expense Acknowledgments.

 

7

 

Section 2.8. Closing Deliveries.

(a) At the Closing, the Company shall deliver or cause to be delivered to Parent:

(i) the Certificate of Merger, duly executed by the Company;

(ii) the stock book, stock ledger and minute books of the Company;

(iii) an updated Schedule 3.3(a) and Schedule 3.3(b) showing the number of
shares of each class of outstanding Company Capital Stock, as well as each Vested Option, and the
holders thereof immediately prior to Closing;

(iv) a certificate executed by the Company to the effect that the conditions set forth in
Section 6.2(a) and Section 6.2(e) have been satisfied;

(v) constructive possession of all originals and copies of agreements, instruments, documents,
deeds, books, records and files pertaining to the Company or the Subsidiary (collectively, the
“Records”) that are within the possession of the Company or the Subsidiary;

(vi) constructive possession of all originals and copies of Records that are within the
possession of the Owners, but only to the extent that (A) neither the Company nor the Subsidiary
has possession of the original or copy of such Records, and (B) such Records are necessary or
useful in operating the Business;

(vii) evidence satisfactory to Parent that Parent’s designees shall be the only authorized
signatories with respect to the Company’s various accounts, credit lines, safe deposit boxes or
vaults set forth or required to be set forth in Schedule 3.18; and

(viii) an affidavit stating that the shares of Company Capital Stock are not a “United States
real property interest” within the meaning of Section 897(c) of the Code, dated as of the Closing
Date and in form and substance required under Sections 1.897-2(h) and 1.1445-2(c) of the Treasury
Regulations.

(b) At or prior to the Closing, Parent shall deliver to Owners’ Representative:

(i) the Certificate of Merger, duly executed by Merger Sub; and

(ii) a certificate executed by an authorized officer of Parent, on behalf of Parent, to the
effect that the conditions set forth in Section 6.1(a) and Section 6.1(b) have been
satisfied.

Section 2.9. Termination in Absence of Closing.

(a) Subject to the provisions of Section 2.9(b) and Section 2.9(c), if by the
close of business on September 15, 2011, the Closing has not occurred, then Parent, the Company or
the Owners’ Representative may thereafter terminate this Agreement by written notice to such effect
to the other parties hereto, without liability of or to any party to this Agreement or any
stockholder, director, officer, employee or representative of such party, unless the reason for
Closing having not occurred is (i) such party’s willful breach of the provisions of this Agreement,
or (ii) if all of the conditions to such party’s obligations set forth in Article VI have
been satisfied or waived in writing by the date scheduled for the Closing pursuant to Section
2.1, the failure of such party to perform its obligations under this Article II on such date;
provided, however, that the provisions of Sections 9.2 through 9.6 and Section
9.15 shall survive any such termination; and provided further, however, that any termination
pursuant to this Section 2.9 shall not relieve any party hereto who was responsible for
Closing having not occurred as described in clauses (i) or (ii) above of any liability for (x) such
party’s willful breach of the provisions of this Agreement, or (y) if all of the conditions to such
party’s obligations set forth in Article VI have been satisfied or waived in writing by the
date scheduled for the Closing pursuant to Section 2.1, the failure of such party to
perform its obligations under this Article II on such date.

 

8

 

(b) This Agreement and the transactions contemplated herein may be terminated and abandoned at
any time on or prior to the Closing Date by notice from Parent to the Owners’ Representative if:

(i) the representations and warranties made herein for the benefit of Parent are untrue in any
material respect; or

(ii) the Company or the Owners shall have defaulted in any material respect in the performance
of any material obligation under this Agreement, and such default shall have not been cured within
ten (10) days of written notice thereof.

(c) This Agreement and the transactions contemplated herein may be terminated and abandoned at
any time on or prior to the Closing Date by notice from the Owners’ Representative to Parent if:

(i) the representations and warranties made herein for the benefit of the Owners are untrue in
any material respect; or

(ii) Parent shall have defaulted in any material respect in the performance of any material
obligation under this Agreement, and such default shall have not been cured within ten (10) days of
written notice thereof.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

AND THE OWNERS

A. Company Representations. The Company hereby represents and warrants to Parent and
Merger Sub that:

Section 3.1. Existence and Qualification. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws of the State of Delaware. The
Company has the corporate power to own, manage, lease and hold its Properties and to carry on its
business as and where such Properties are presently located and such business is presently
conducted. Neither the character of the Company’s Properties nor the nature of the Company’s
business requires the Company to be duly qualified to do business as a foreign corporation in any
jurisdiction outside those identified in Schedule 3.1 hereto, except where the failure to
be so qualified would not, individually or in the aggregate, have a Material Adverse Effect, and
the Company is qualified as a foreign corporation and in good standing in each jurisdiction listed
in Schedule 3.1.

Section 3.2. Authority, Approval and Enforceability. This Agreement has been duly
executed and delivered by the Company, and the Company has all requisite power and authority to
execute and deliver this Agreement, to consummate the transactions contemplated hereby, and to
perform its obligations hereunder. This Agreement constitutes the legal, valid and binding
obligation of the Company, enforceable in accordance with its terms, except as such enforcement may
be limited by general equitable principles or by applicable bankruptcy, insolvency, moratorium, or
similar laws and judicial decisions from time to time in effect which affect creditors’ rights
generally. The execution, delivery and performance of this Agreement and the consummation by the
Company of the Merger and the other transactions contemplated hereby have been duly authorized by
all necessary corporate action on the part of the Company (including approval of the Company’s
board of directors and stockholders) and, except for the notice required by Section 228 of the
DGCL, no other corporate proceedings on the part of the Company are necessary to authorize this
Agreement or to consummate the Merger or other transactions contemplated hereby.

 

9

 

Section 3.3. Capitalization and Business Records.

(a) The authorized Company Capital Stock consists of (i) 100,000 shares of preferred stock,
$0.00001 par value, of which 20,000 have been designated as Series A Preferred Stock, (ii)
4,900,000 shares of common stock, par value $0.00001 per share of which 4,400,000 shares have been
designated as Class A Common Stock and 500,000 shares have been designated as Class B Common Stock.
All issued and outstanding shares of Company Capital Stock are owned of record as set forth on
Schedule 3.3(a) hereto. All of the outstanding shares of Company Capital Stock are duly
authorized, validly issued, fully paid and non-assessable and were not issued in violation of (i)
any preemptive or other rights of any Person to acquire securities of the Company, or (ii) any
applicable federal or state securities laws, and the rules and regulations promulgated thereunder
(collectively, the “Securities Laws”).

(b) Except as set forth on Schedule 3.3(b), there are no outstanding subscriptions,
Options, convertible securities, warrants, calls or similar agreements relating to any shares of
Company Capital Stock. Schedule 3.3(b) sets forth a true and complete listing of all
outstanding stock Options and warrants, including (i) the name of the holder thereof, (ii) the
number of shares of Company Capital Stock subject thereto, (iii) the per share exercise price, (iv)
the date of grant, and (v) any applicable vesting schedule.

(c) Except for the Subsidiary, the Company does not own, directly or indirectly, any
outstanding securities of or other interests in any other corporation, partnership, joint venture
or other Person. The outstanding shares of capital stock of the Subsidiary are validly issued,
fully paid and non-assessable, and all such shares are owned by the Company free and clear of any
and all Liens of any kind whatsoever, except as set forth in Schedule 3.3(c). There is no
existing option, warrant, call, commitment or agreement to which the Subsidiary is a party
requiring, and there are no convertible securities of the Subsidiary outstanding which upon
conversion would require, the issuance of any additional shares of capital stock of the Subsidiary
or other securities convertible into shares of capital stock of the Subsidiary or other equity
security of the Subsidiary. The Subsidiary is a duly organized and validly existing corporation or
other entity in good standing under the laws of the jurisdiction of its organization and, except
where the failure to be so qualified would not (individually or in the aggregate) have a Material
Adverse Effect, is duly qualified to do business and is in good standing under the laws of (i) each
jurisdiction in which it owns or leases real property and (ii) each other jurisdiction in which the
conduct of its business or the ownership of its assets requires such qualification. The Subsidiary
has all requisite corporate power and authority to own its own Properties and carry on its business
as presently conducted.

(d) The copies of the certificate of incorporation and the bylaws of the Company and the
articles of incorporation and bylaws of Subsidiary provided to Parent are true, accurate and
complete and reflect all amendments made through the date of this Agreement. The stock and minute
books of the Company and the Subsidiary made available to Parent for review were correct and
complete as of the date of such review, no further entries have been made through the date of this
Agreement, and such minute books contain an accurate record of all shareholder and director actions
taken by written consent or at a meeting since September 30, 2009.

Section 3.4. No Company Defaults or Consents. Except as otherwise set forth in
Schedule 3.4 hereto, neither the execution and delivery of this Agreement nor the carrying
out of any of the transactions contemplated hereby will:

(i) violate or conflict with any of the terms, conditions or provisions of the certificate of
incorporation or bylaws of the Company or the articles of incorporation and bylaws of the
Subsidiary;

(ii) violate any Legal Requirements applicable to the Company or the Subsidiary;

(iii) violate, conflict with, result in a breach of, constitute a default under (whether with
or without notice or the lapse of time or both), or accelerate or permit the acceleration of the
performance required by, or give any other party the right to terminate, any Contract or Permit
binding upon or applicable to the Company or the Subsidiary;

 

10

 

(iv) result in the creation of any Lien, charge or other encumbrance on any Properties of the
Company or the Subsidiary; or

(v) require either the Company or the Subsidiary to obtain or make any waiver, consent,
action, approval or authorization of, or registration, declaration, notice or filing with, any
private non-governmental third party or any Governmental Authority.

Section 3.5. No Proceedings. No suit, action or other proceeding is pending or, to
the Knowledge of the Company, threatened before any Governmental Authority seeking to restrain the
Company or any of the Owners or prohibit their entry into this Agreement or prohibit the Closing,
or seeking damages against the Company, the Subsidiary or any of their Properties as a result of
the consummation of this Agreement.

Section 3.6. Employee Benefit Matters.

(a) Schedule 3.6(a) provides a true and complete list of each (i) “employee benefit
plan,” as such term is defined in Section 3(3) of the Employee Retirement Income Security Act of
1974 (“ERISA”) that is sponsored, maintained or contributed to by the Company or the Subsidiary for
the benefit of the employees or agents of the Company or the Subsidiary or with respect to which
the Company or the Subsidiary has or could reasonably be expected to have any actual or contingent
liability (each, a “Plan”); or (ii) Benefit Program or Agreement.

(b) True, correct and complete copies of each of the Plans and each Benefit Program or
Agreement (if any), and related trusts, if applicable, including all amendments thereto, have been
furnished to Parent. There has also been furnished to Parent, with respect to each Plan required
to file such report or maintain such description, the most recent reports on Form 5500 and the
summary plan description (if separate from the plan document).

(c) Except as otherwise set forth in Schedule 3.6(c) hereto,

(i) Neither the Company nor the Subsidiary contributes to or has an obligation to contribute
to, and neither the Company nor the Subsidiary has at any time contributed to or had an obligation
to contribute to, and neither the Company nor the Subsidiary has any actual or contingent liability
under (x) a multiemployer plan within the meaning of Section 3(37) of ERISA or a multiple employer
plan within the meaning of Section 413(b) and (c) of the Code, (y) a defined benefit plan subject
to Title IV of ERISA or (z) a plan subject to Section 412 of the Code;

(ii) Each of the Company and the Subsidiary has substantially and timely performed all
obligations, whether arising under Legal Requirements or by contract, required to be performed by
it in connection with the Plans and the Benefit Programs and Agreements and, to the Knowledge of
the Company, there have been no material defaults or violations by any other party to the Plans or
Benefit Programs or Agreements;

(iii) All reports and disclosures relating to the Plans required to be filed with or furnished
to Governmental Agencies, Plan participants or Plan beneficiaries have been filed or furnished in
accordance with applicable Legal Requirements in a timely manner, and each Plan and each Benefit
Program or Agreement has been administered in substantial compliance with its governing documents;

(iv) Each of the Plans intended to be qualified under Section 401 of the Code satisfies the
requirements of such Section and has either (A) received a favorable determination letter from the
Internal Revenue Service (“IRS”) regarding such qualified status or (B) is based upon a
prototype plan that has been approved by the IRS;

(v) There are no actions, suits or claims pending (other than routine claims for benefits) or,
to the Knowledge of the Company, threatened against, or with respect to, any of the Plans or
Benefit Programs or Agreements or their assets;

 

11

 

(vi) All contributions required to be made to the Plans pursuant to their terms and provisions
and applicable Legal Requirements have been made timely;

(vii) None of the Plans nor any trust created thereunder or with respect thereto has engaged
in any “prohibited transaction” or “party-in-interest transaction” as such terms are defined in
Section 4975 of the Code and Section 406 of ERISA that could reasonably be expected to subject any
Plan, the Company, the Subsidiary or any officer, director or employee thereof to a tax or penalty
on prohibited transactions or party-in-interest transactions pursuant to Section 4975 of the Code
or Section 502(i) of ERISA;

(viii) To the Knowledge of the Company, there is no matter pending (other than routine
qualification determination filings) with respect to any of the Plans or Benefit Programs or
Agreements before the IRS, the Department of Labor or the Pension Benefit Guaranty Corporation;

(ix) Neither the Company nor the Subsidiary has any obligation to provide health benefits or
death benefits to former employees, except as specifically required by law;

(x) Neither the execution and delivery of this Agreement nor the consummation of any or all of
the transactions contemplated hereby will: (A) entitle any current or former employee of the
Company or the Subsidiary to severance pay, unemployment compensation or any similar payment, (B)
accelerate the time of payment or vesting or increase the amount of any compensation due to any
such employee or former employee or (C) directly or indirectly result in any payment made to or on
behalf of any person to constitute a “parachute payment” within the meaning of Section 280G of the
Code;

(xi) Each plan or arrangement to which the Company or the Subsidiary is party or by which it
is bound that constitutes a nonqualified deferred compensation plan subject to Section 409A of the
Code is in the form required by, and has been operated in all material respects in compliance with,
the provisions of Section 409A of the Code and other generally applicable guidance published by the
IRS; and

(xii) Since September 30, 2009, there have not been any (i) work stoppages, labor disputes or
other significant controversies between the Company or the Subsidiary and their employees, (ii)
labor union grievances or organizational efforts, or (iii) unfair labor practice or labor
arbitration proceedings pending or, to the Knowledge of the Company, threatened.

(d) None of the employees employed by the Company or the Subsidiary as of the date of this
Agreement are subject to union or collective bargaining agreements.

(e) Each of the Company and the Subsidiary is in compliance with all applicable federal,
state, and local laws respecting employment and employment practices, terms and conditions of
employment, compensation and wages and hours.

(f) Each of the Company and the Subsidiary is employing individuals who are lawfully permitted
to work in the United States and each employer is in compliance with all applicable laws and
regulations of the United States regarding immigration and/or employment of non-citizen workers.
Neither the Company nor the Subsidiary has been notified of any pending or threatened investigation
by any branch or department of U.S. Immigration and Customs Enforcement (“ICE”), or other federal
agency charged with administration and enforcement of federal immigration laws concerning it, and
neither the Company nor the Subsidiary has received any “no match” notices from ICE, the Social
Security Administration or the IRS within the previous 12 months of the date of this Agreement.

(g) To the Knowledge of the Company, the Company and the Subsidiary have properly classified
individuals as employees or independent contractors and as exempt or non-exempt.

 

12

 

(h) Neither the Company nor the Subsidiary has implemented any facility closing or mass layoff
of employees as those terms are defined in the Worker Adjustment Retraining and Notification Act of
1988, as amended, mass termination provisions of any applicable employment standards legislation or
any similar federal, state, provincial or local law or regulation and no layoffs that could
reasonably be expected to implicate such laws or regulations up through and including the Closing
Date are currently contemplated or have been effected within the six (6) months prior to Closing.

Section 3.7. Financial Statements. The Company has delivered to Parent true and
complete copies of (a) the audited balance sheets and related statements of income and retained
earnings with respect to the Company and the Subsidiary as of and for the year ended December 31,
2010, and for the period October 1, 2009 through December 31, 2009, and (b) the unaudited balance
sheets and related statement of income with respect to the Company and the Subsidiary as of and for
the six (6) months ended June 30, 2011 (the “Interim Financial Statements” and together
with the financial statements in clause (a), the “Financial Statements”); and said
Financial Statements are attached to Schedule 3.7. Except as set forth in Schedule
3.7, the Financial Statements present fairly in all material respects the financial condition
and results of operations of the Company for the dates or periods indicated thereon in accordance
with GAAP applied on a consistent basis (except that the Interim Financial Statements do not
include GAAP footnote disclosure and are subject to normal year-end adjustments which are not
expected to be material). The accounting records of the Company and the Subsidiary fairly reflect
in all material respects, in accordance with all applicable requirements of GAAP, (i) all
transactions relating to the Company and the Subsidiary, and (ii) all items of income and expense,
assets and liabilities and accruals relating to the Company and the Subsidiary. The Company
maintains a system of internal control over financial reporting that is reasonably sufficient in
all material respects to provide reasonable assurance that transactions are recorded as necessary
to permit preparation of financial statements in conformity with GAAP. The Company has no
significant deficiencies or material weaknesses in the design or operation of its internal control
over financial reporting that would reasonably be expected to adversely affect the Company’s
ability to record, process, summarize and report financial information and (ii) the Company does
not have Knowledge of any fraud, whether or not material, that involves management or other
employees who have a significant role in the Company’s internal control over financial reporting.

Section 3.8. No Undisclosed Liabilities; Accounts Receivable; Liens.

(a) Except for (i) the liabilities reflected on the Company’s December 31, 2010 balance sheet
included with the Financial Statements, (ii) liabilities and obligations (excluding liabilities for
violation of Legal Requirements, breach of contract, or tort) incurred since December 31, 2010 (the
“Balance Sheet Date”) in the ordinary course of business, (iii) executory contract
obligations under (x) Contracts listed in Schedule 3.13, and/or (y) Contracts not required
to be listed in Schedule 3.13, and (iv) the liabilities set forth in Schedule
3.8(a) hereto, neither the Company nor the Subsidiary has any material liabilities or
obligations (whether accrued, absolute or contingent, known, unknown or otherwise), including but
not limited to, material liabilities for violation of Legal Requirements, breach of Contract, or
tort.

(b) Except as otherwise set forth in Schedule 3.8(b) hereto, the accounts receivable
reflected in the December 31, 2010 balance sheet included in the Interim Financial Statements and
all of the Company’s and Subsidiary’s accounts receivable arising since the Balance Sheet Date
arose from bona fide transactions in the ordinary course of business, and the services involved
have been sold, delivered and performed to the account obligors, no further filings (with
governmental agencies, insurers or others) are required to be made, and no further services are
required to be rendered in order to entitle the Company or the Subsidiary to collect the accounts
receivable in full. Except as set forth in Schedule 3.8(b), no such account has been
assigned or pledged to any other person, firm or corporation, and, except only to the extent fully
reserved against as set forth in the Financial Statements, no defense or set-off to any such
account has been asserted by the account obligor or exists.

(c) Except as provided under the provisions of the agreements described in
Schedule 3.8(c) hereto, the Company and the Subsidiary has and will have as of the Closing
Date legal and beneficial ownership of its Properties, free and clear of any and all Liens except
the Permitted Liens.

 

13

 

Section 3.9. Absence of Certain Changes.

(a) Except as otherwise set forth in Schedule 3.9(a) hereto, since the Balance Sheet
Date, there has not been:

(i) any event, circumstance or change that had or might have a Material Adverse Effect; or

(ii) any damage, destruction or loss (whether or not covered by insurance) that had or might
have a Material Adverse Effect.

(b) Except as otherwise set forth in Schedule 3.9(b) hereto, since the Balance Sheet
Date, neither the Company nor the Subsidiary has done any of the following:

(i) merged into or with or consolidated with, any other corporation or acquired the business
or assets of any Person;

(ii) purchased any securities of any Person;

(iii) created, incurred, assumed, guaranteed or otherwise become liable or obligated with
respect to any Funded Indebtedness, or made any loan or advance to, or any investment in, any
Person, except in each case in the ordinary course of business;

(iv) made any change in any existing election, or made any new election, with respect to any
Tax law in any jurisdiction which election could reasonably be expected to have an effect on the
Tax treatment of the Company or the Subsidiary or their operations;

(v) entered into, amended or terminated any material Contract;

(vi) sold, transferred, leased, mortgaged, encumbered or otherwise disposed of, or agreed to
sell, transfer, lease, mortgage, encumber or otherwise dispose of, any Properties except (i) in the
ordinary course of business, or (ii) pursuant to any Contract specified in Schedule 3.13;

(vii) settled any claim or litigation, or filed any motions, orders, briefs or settlement
agreements in any proceeding before any Governmental Authority or any arbitrator;

(viii) incurred or approved, or entered into any Contract to make, any expenditures in excess
of $100,000 (other than those arising in the ordinary course of business or those required pursuant
to any Contract specified in Schedule 3.13);

(ix) maintained its books of account other than in the usual, regular and ordinary manner on a
basis consistent with prior periods or made any change in any of its accounting methods or
practices that would be required to be disclosed under GAAP;

(x) adopted any Plan or Benefit Program or Agreement, or granted any increase in the
compensation payable or to become payable to officers or employees (including, without limitation,
any such increase pursuant to any bonus, profit-sharing or other plan or commitment), other than
merit increases to non-officer employees in the ordinary course of business and consistent with
past practice;

(xi) suffered any extraordinary losses or waived any rights of material value;

(xii) made any payment to any Affiliate, including but not limited to any distributions or
other payments to any Owner, or forgiven any indebtedness due or owing from any Affiliate to the
Company;

(xiii) provided discounts on pricing or receivables other than in the ordinary course, (B)
accelerated the collection of receivables, (C) delayed the payment of expenses, trade payables or
other liabilities, or (D) changed in any material respect the Company’s or the Subsidiary’s
practices in connection with the payment of payables and/or the collection of receivables;

 

14

 

(xiv) engaged in any one or more activities or transactions (A) with an Affiliate; or (B)
outside the ordinary course of business;

(xv) declared, set aside or paid any dividends, or made any distributions or other payments in
respect of its equity securities, or repurchased, redeemed or otherwise acquired any such
securities;

(xvi) amended its certificate of incorporation or articles of incorporation, as applicable, or
bylaws;

(xvii) issued any capital stock or other securities, or granted, or entered into any agreement
to grant, any Options, convertible rights, other rights, warrants, calls or agreements relating to
its capital stock; or

(xviii) committed to do any of the foregoing.

Section 3.10. Compliance with Laws. Except as otherwise set forth in Schedule
3.10 hereto, the Company and the Subsidiary is and has been since September 30, 2009, in
compliance in all material respects with any and all Legal Requirements applicable to it. Except
as otherwise set forth in Schedule 3.10 hereto and without limiting the generality of the
foregoing, neither the Company nor the Subsidiary (x) has received or entered into any citations,
complaints, consent orders, compliance schedules, or other similar enforcement orders or received
any written notice from any Governmental Authority or any other written notice that would indicate
that it is not currently in compliance with all Legal Requirements and (y) to the Knowledge of the
Company, (i) no formal or informal investigation or review related to the Company or the Subsidiary
is being conducted by any commission, board or other Governmental Authority, and (ii) no such
investigation or review is scheduled, pending or threatened against the Company or the Subsidiary.

Section 3.11. Litigation. Except as otherwise set forth in Schedule 3.11
hereto, there are no claims, actions, suits, investigations, proceedings or inquiries against the
Company or the Subsidiary pending or, to the Knowledge of the Company, threatened in any court or
before or by any Governmental Authority, or before any arbitrator, and, to the Knowledge of the
Company, there is no reasonable basis for any such claim, action, suit, investigation, proceeding
or inquiry. Schedule 3.11 also includes a true and correct listing of all material
actions, suits, investigations, claims or proceedings that were pending, settled or adjudicated
since September 30, 2009.

Section 3.12. Real Property.

(a) Neither the Company nor the Subsidiary owns any real property (including without
limitation any option or other right or obligation to purchase any real property).

(b) Schedule 3.12 sets forth a list of all leases, licenses or similar agreements
relating to the Company’s or the Subsidiary’s Use or occupancy of real property owned by a third
party (“Leases”), true and correct copies of which (including amendments thereto) have previously
been furnished to Parent, in each case setting forth (i) the lessor and lessee thereof and the date
of each such Lease, and (ii) the street address and legal description of each property covered
thereby (the “Leased Premises”).

 

15

 

(c) The Company or the Subsidiary have a valid leasehold interest in the Leased Premises, free
and clear of any Liens, encumbrances, covenants and easements or title defects that have had or
could reasonably be expected to have an adverse effect on its Use and occupancy of the Leased
Premises. The portions of the buildings located on the Leased Premises that are used in the
business of the Company and the Subsidiary are in good repair and condition, normal wear and tear
excepted, and are in the aggregate sufficient to satisfy the Company’s and the Subsidiary’s current
and reasonably anticipated normal business activities as conducted thereon and, to the Knowledge of
the Company, there is no latent material defect in the improvements on any Leased Premises, the
structural elements thereof, the mechanical systems (including, without limitation, all heating,
ventilating, air conditioning, plumbing, electrical, utility and sprinkler systems) therein, the
utility system servicing such Leased Premises or the roofs which have not been disclosed to Parent
in writing prior to the date of this Agreement. Each of the Leased Premises (a) has direct access
to public roads or access to public roads by means of a perpetual access easement, such access
being sufficient to satisfy the current transportation requirements of the business conducted at
such parcel; and (b) is served by all utilities in such quantity and quality as are necessary and
sufficient to satisfy the current business activities conducted at such parcel. Since
September 30, 2009, neither the Company, the Subsidiary nor any of their Affiliates has received
notice of (a) any condemnation, eminent domain or similar proceeding affecting any portion of the
Leased Premises or any access thereto, and, to the Knowledge of the Company, no such proceedings
are contemplated, (b) any special assessment or pending improvement liens to be made by any
Governmental Authority which reasonably be expected to affect any of the Leased Premises, or (c)
any violations of building codes and/or zoning ordinances or other governmental regulations with
respect to the Leased Premises.

Section 3.13. Contracts.

(a) Except as otherwise set forth in Schedule 3.13 hereto, neither the Company nor the
Subsidiary is a party to or bound by any of the following, whether written or oral:

(i) any Contract obligating the Company or the Subsidiary to spend in excess of $150,000 in
any twelve (12) month period;

(ii) any material lease or license with respect to any personal Properties, whether as
licensor or licensee;

(iii) any Contract relating to Funded Indebtedness, the guarantee of any obligation, or the
deferred payment of the purchase price of any Properties;

(iv) any shareholder, partnership, joint venture, limited liability company operating or
similar entity governance Contract;

(v) any Contract with any Affiliate of the Company or the Subsidiary relating to the provision
of funds, goods or services by or to the Company or the Subsidiary;

(vi) any Contract for the sale of any assets other than in the ordinary course of business;

(vii) any Contract that purports to limit the Company’s or the Subsidiary’s freedom to compete
freely in any line of business or in any geographic area;

(viii) any Contract with a customer listed or required to be listed in Schedule 3.19
hereto;

(ix) any preferential purchase right, right of first refusal, or similar Contract; or

(x) any other Contract that is material to the Company’s or the Subsidiary’s business, results
of operations, Properties, financial condition, assets, liabilities, cash flows or working capital.

(b) All of the Contracts listed or required to be listed in Schedule 3.13 hereto are
valid, binding and in full force and effect, and neither the Company nor the Subsidiary has been
notified or advised by any party thereto of such party’s intention or desire to terminate or modify
any such Contract in any material respect, except as disclosed in Schedule 3.13. Neither
the Company, the Subsidiary nor, to the Knowledge of the Company, any other party is in breach of
any of the terms or covenants of any Contract listed or required to be listed in Schedule
3.13. Immediately following the Closing, the Company or the Subsidiary will continue to be
entitled to all of the benefits currently held by it under each Contract listed or required to be
listed in Schedule 3.13.

 

16

 

(c) Except as otherwise set forth in Schedule 3.22 hereto, neither the Company nor the
Subsidiary is a party to or bound by any Contract or Contracts the terms of which were arrived at
by or otherwise reflect less-than-arms’-length negotiations or bargaining.

Section 3.14. Insurance. Schedule 3.14 hereto is a complete and correct list
of all insurance policies (including, without limitation, fire, liability, workers’ compensation,
umbrella and vehicular) presently in effect that relate to the Company, the Subsidiary or their
Properties, all of which have been in full force and effect from and after the date(s) set forth in
Schedule 3.14. Such policies are sufficient for compliance by the Company and the
Subsidiary with all applicable Legal Requirements and all material Contracts. None of the
insurance carriers has indicated to the Company or the Subsidiary an intention to cancel any such
policy or to materially increase any insurance premiums (including, without limitation, workers’
compensation premiums), or that any insurance required to be listed in Schedule 3.14 will
not be available in the future on substantially the same terms as currently in effect. Neither the
Company nor the Subsidiary has a claim pending or anticipated against any of its insurance carriers
under any of such policies and, to the Knowledge of the Company, there has been no actual or
alleged occurrence of any kind which could reasonably be expected to give rise to any such claim.
Since December 31, 2007, all notices required to have been given by the Company or the Subsidiary
to any insurance company have been timely and duly given, and no insurance company has asserted
that any claim is not covered by the applicable policy relating to such claim.

Section 3.15. Intangible Rights. Set forth in Schedule 3.15 hereto is a list
and description of all material foreign and domestic patents, patent rights, trademarks, service
marks, trade names, brands and copyrights (whether or not registered and, if applicable, including
pending applications for registration) owned, Used, licensed or controlled by the Company or the
Subsidiary. The Company and the Subsidiary owns or has the right to Use and shall as of the
Closing Date own or have the right to Use any and all information, know-how, trade secrets,
patents, copyrights, trademarks, tradenames, software, formulae, methods, processes and other
intangible properties that are customarily Used by the Company and the Subsidiary for the
ownership, management or operation of its Properties (“Intangible Rights”) including, but
not limited to, the Intangible Rights listed in Schedule 3.15. Except as set forth in
Schedule 3.15, (i) the Company or the Subsidiary is the sole and exclusive owner of all
right, title and interest in and to all of the Intangible Rights, and, to the Company’s Knowledge,
has the exclusive right to use and license the same, free and clear of any claim or conflict with
the Intangible Rights of others; (ii) no royalties, honorariums or fees are payable by the Company
or the Subsidiary to any person by reason of the ownership or use of any of the Intangible Rights;
(iii) there have been no claims since September 30, 2009, made against the Company or the
Subsidiary asserting the invalidity, abuse, misuse, or unenforceability of any of the Intangible
Rights and, to the Company’s Knowledge, no grounds for any such claims exist; (iv) neither the
Company nor the Subsidiary has made any claim of any violation or infringement by others of any of
its Intangible Rights or interests therein and, to the Knowledge of the Company, no grounds for any
such claims exist; (v) neither the Company nor the Subsidiary has received since September 30,
2009, any notice that it is in conflict with or infringing upon the asserted intellectual property
rights of others in connection with the Intangible Rights, and neither the use of the Intangible
Rights nor the operation of the Company’s or the Subsidiary’s business is infringing or has
infringed upon any intellectual property rights of others; (vi) the Intangible Rights are
sufficient and include all intellectual property rights necessary for the Company to lawfully
conduct its business as presently being conducted; (vii) no interest in any of the Company’s or the
Subsidiary’s Intangible Rights has been assigned, transferred, licensed or sublicensed by the
Company or the Subsidiary to any Person; (viii) to the extent that any item constituting part of
the Intangible Rights has been registered with, filed in or issued by, any Governmental Authority,
such registrations, filings or issuances are listed in Schedule 3.15 and were duly made and
remain in full force and effect; (ix) to the Knowledge of the Company, there has not been any act
or failure to act by the Company or the Subsidiary or any of their directors, officers, employees,
attorneys or agents during the prosecution or registration of, or any other proceeding relating to,
any of the Intangible Rights or of any other fact which could render invalid or unenforceable, or
negate the right to issuance of any of the Intangible Rights; (x) to the extent any of the
Intangible Rights constitutes proprietary or confidential information, the Company and the
Subsidiary have taken reasonable steps to adequately safeguard such information from disclosure;
and (xi) all of the Company’s current Intangible Rights will remain in full force and effect
immediately following the Closing without alteration or impairment.

 

17

 

Section 3.16. Equipment and Other Tangible Property. Except as otherwise set forth in
Schedule 3.16(a) hereto, the Company’s and the Subsidiary’s equipment, furniture,
machinery, tractors, trailers, and other vehicles, structures, fixtures and other tangible property
included in its Properties (the “Tangible Company Properties”) is suitable for the purposes
for which intended and in good operating condition and repair consistent with normal industry
standards, except for ordinary wear and tear, and except for such Tangible Company Properties as
shall have been taken out of service on a temporary basis for repairs or replacement consistent
with the Company’s prior practices and normal industry standards. To the Knowledge of the Company,
the Tangible Company Properties are free of any and all defects, and since September 30, 2009,
there has not been any significant interruption of the Company’s or the Subsidiary’s business due
to inadequate maintenance or obsolescence of the Tangible Company Properties.

Section 3.17. Permits; Environmental Matters.

(a) Except as otherwise set forth in Schedule 3.17(a) hereto, each of the Company and
the Subsidiary has all Permits necessary to own, operate, Use and/or maintain its Properties and to
conduct its business and operations as presently conducted. All such Permits are in effect, no
proceeding is pending or, to the Knowledge of the Company, threatened to modify, suspend or revoke,
withdraw, terminate, or otherwise limit any such Permits, and no administrative or governmental
actions have been taken or, to the Knowledge of the Company, threatened in connection with the
expiration or renewal of such Permits, which could adversely affect the ability of the Company and
the Subsidiary to in all material respects own, operate, use or maintain any of its Properties or
conduct its business and operations as presently conducted. Except as otherwise set forth in
Schedule 3.17(a) hereto, (i) no violations have occurred that remain uncured, unwaived, or
otherwise unresolved, or are occurring in respect of any such Permits, other than inconsequential
violations; (ii) no circumstances exist that would prevent or delay the obtaining of any requisite
consent, approval, waiver or other authorization of the transactions contemplated hereby with
respect to such Permits that by their terms or under applicable law may be obtained only after
Closing; and (iii) there exists no set of facts which could reasonably be expected to furnish a
basis for the recall, withdrawal or suspension of any registration, license, or other Permit,
approval or consent of any Governmental Authority with respect to the Company.

(b) Except as set forth in Schedule 3.17(b) hereto, (i) there are no claims,
liabilities, investigations, litigation, administrative proceedings, judgments or orders relating
to any Hazardous Materials (collectively called “Environmental Claims”) asserted or, to the
Knowledge of the Company, threatened against the Company or the Subsidiary or relating to any real
property currently or formerly leased or otherwise Used by the Company or the Subsidiary; (ii)
neither the Company, the Subsidiary nor, to the Knowledge of the Company, any current or prior
owner, lessee or operator of said real property, has caused or permitted any Hazardous Material to
be used, generated, reclaimed, transported, released, treated, stored or disposed of in a manner
which could reasonably be expected to form the basis for an Environmental Claim against the
Company, the Subsidiary or Parent; and (iii) no Hazardous Materials are or were in the last
five (5) years stored or otherwise located, and no underground or above-ground storage tanks or
surface impoundments are or were in the last five (5) years located, on real property currently or
formerly owned, leased or Used by the Company, the Subsidiary or, to the Knowledge of the Company,
on adjacent parcels of real property, and no part of such real property or, to the Knowledge of the
Company, any part of such adjacent parcels of real property, including the groundwater located
thereon, is presently contaminated by Hazardous Materials.

(c) Except as set forth in Schedule 3.17(c) hereto, the Company and the Subsidiary has
been and is currently in compliance with in all material respects all applicable environmental
Legal Requirements, including obtaining and maintaining in effect all Permits required by
applicable environmental Legal Requirements.

 

18

 

Section 3.18. Banks. Schedule 3.18 hereto sets forth (i) the name of each
bank, trust company or other financial institution and stock or other broker with which the Company
or the Subsidiary has an account, credit line or safe deposit box or vault, (ii) the names of all
Persons authorized to draw thereon or to have access to any safe deposit box or vault, (iii) the
purpose of each such account, safe deposit box or vault, and (iv) the names of all persons
authorized by proxies, powers of attorney or other like instrument to act on behalf of the Company
in matters concerning any of its business or affairs. Except as otherwise set forth in Schedule
3.18 hereto, no such proxies, powers of attorney or other like instruments are irrevocable.

Section 3.19. Customers; Relationships. Schedule 3.19 hereto sets forth (a)
the twenty (20) principal customers of the Company during each of the fiscal years ended
December 31, 2010, and 2009, as measured by highest gross revenue for each such fiscal year and (b)
the percentage of the Company’s gross revenue attributable to each such customer during such fiscal
year. Except as otherwise set forth in Schedule 3.19 hereto, the Company maintains good
business relations with all customers listed or required to be listed in Schedule 3.19; and
no such customer has canceled, terminated or made any written threat to the Company to cancel or
otherwise terminate its business relationship with the Company or to materially decrease its
purchase or usage of the services of the Company.

Section 3.20. Absence of Certain Business Practices. None of the Company, nor any
other Affiliate or agent of the Company, or any other Person acting on behalf of or associated with
the Company, acting alone or together, has (a) received, directly or indirectly, any rebates,
payments, commissions, promotional allowances or any other economic benefits, regardless of their
nature or type, from any customer, supplier, employee or agent of any customer or supplier; or (b)
directly or indirectly given or agreed to give any money, gift or similar benefit to any customer,
supplier, employee or agent of any customer or supplier or any official or employee of any
government (domestic or foreign), or any political party or candidate for office (domestic or
foreign), or other Person who was, is or could reasonably be expected to be in a position to help
or hinder the business of the Company (or assist the Company in connection with any actual or
proposed transaction), in each case (i.e. with respect to any matter under (a) and (b) above) which
(i) could reasonably be expected to subject the Company to any damage or penalty in any civil,
criminal or governmental litigation or proceeding, (ii) if not given in the past, could reasonably
be expected to have had an adverse effect on the business, results of operations, financial
conditions, or cash flows of the Company or the Subsidiary exceeding $150,000 in value or (iii) if
not continued in the future, could reasonably be expected to have a Material Adverse Effect.

Section 3.21. Authorizations. Set forth in Schedule 3.21 hereto is a list of
all material authorizations, consents, approvals, franchises, licenses and Permits required by any
Person (other than a Governmental Authority) for the operation of the business of the Company as
presently operated (the “Other Person Authorizations”). All of the Other Person
Authorizations have been duly issued or obtained and are in full force and effect, and the Company
is, in all material respects, in compliance with the terms of all the Other Person Authorizations.
The Company has no Knowledge of any facts which could reasonably be expected to cause it to believe
that the Other Person Authorizations will not be renewed by the appropriate Person in the ordinary
course. Each of the Other Person Authorizations will continue in full force and effect following
the Closing, in each case without (i) the occurrence of any breach, default or forfeiture of rights
thereunder, or (ii) the consent, approval, or act of, or the making of any filings with, any
Person.

Section 3.22. Transactions With Affiliates. Except as set forth in Schedule
3.22 hereto and except for normal advances to employees consistent with past practices, payment
of compensation for employment to employees consistent with past practices, and participation in
scheduled Plans or Benefit Programs and Agreements by employees, neither the Company nor the
Subsidiary has purchased, acquired or leased any property or services from, or sold, transferred or
leased any property or services to, or loaned or advanced any money to, or borrowed any money from,
or entered into or been subject to any management, consulting or similar agreement with, or engaged
in any other significant transaction with (in each case either directly or indirectly) any Owner or
any other officer, employee, director or security holder of the Company or any of their respective
Affiliates. Except as set forth in Schedule 3.22, neither any Owner nor any other
Affiliate of the Company is, directly or indirectly, indebted to the Company for money borrowed or
other loans or advances, and the Company is not, directly or indirectly, indebted to any such
Person.

 

19

 

Section 3.23. Brokers. Except for BB&T Capital Markets, Inc., no broker, finder or
investment banker is entitled to any brokerage, finder’s or other fee or commission in connection
with the transactions contemplated by this Agreement based upon any arrangements made by or on
behalf of the Company or the Subsidiary.

B. Owner Representations. Each Owner, individually and not jointly and severally,
represents and warrants to Parent and Merger Sub with respect to such Owner (and only such Owner)
the following:

Section 3.24. Owner Organization and Authority. In the case of a Owner that is not an
individual, such Owner is an entity duly formed, legally existing and in good standing under the
laws of the jurisdiction of its organization.

Section 3.25. Owner Authorization and Enforceability. This Agreement has been duly
authorized, executed and delivered by such Owner. Such Owner has all requisite power and capacity
to execute and deliver this Agreement, to consummate the transactions contemplated hereby, and to
perform his or its obligations hereunder. Assuming the due authorization, execution and delivery
by the other parties hereto, this Agreement constitutes the legal, valid and binding obligation of
such Owner, enforceable against such Owner in accordance with its terms, except as such enforcement
may be limited by general equitable principles or by applicable bankruptcy, insolvency, moratorium,
or similar laws and judicial decisions from time to time in effect which affect creditors’ rights
generally.

Section 3.26. No Owner Defaults or Consents. The execution and delivery of this
Agreement by such Owner and the performance by such Owner of his or its obligations hereunder and
thereunder will not violate in any material respect any Legal Requirement applicable to such Owner
or conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a
default under, any Contract to which such Owner is a party, in each case except to the extent that
such violation, default or breach could not reasonably be expected to delay or otherwise
significantly impair the ability of the parties to timely consummate the transactions contemplated
hereby.

Section 3.27. Owner Title to Securities. Such Owner is the record and beneficial owner
of and has good and valid title to the shares of the Company Capital Stock and Options, if
applicable, set forth opposite such Owner’s name on Schedule 3.3(a) and Schedule
3.3(b), free and clear of any and all Liens except as set forth in Schedule 3.27.

Section 3.28. Investment Representations. In connection with such Owner’s Mixed
Election, each Owner electing to convert a portion of such Owner’s shares of Company Common Stock
into shares of Parent Common Stock pursuant to Section 1.10(c)(ii) hereby represents and
warrants to Parent as follows:

(a) In evaluating the suitability of an investment in Parent, such Owner has not relied upon
any representations or other information (whether written or oral) from Parent, except as expressly
set forth herein. Such Owner also acknowledges that it has relied solely upon the information
contained herein and upon investigations made by it in making the Election decision.

(b) Such Owner is aware that an investment in Parent involves a high degree of risk and has
carefully considered the risk factors set forth in Parent’s Annual Report on Form 10-K filed with
the Securities and Exchange Commission (“SEC”).

(c) Such Owner is not relying upon Parent with respect to such Owner’s tax and other economic
circumstances in connection with its Election. In regard to the tax and other economic
considerations related to such investment, such Owner has relied on the advice of, or has consulted
with, only its own professional advisors.

 

20

 

(d) Such Owner is aware that the Parent Common Stock is being issued by means of an exemption
under the Securities Act of 1933, as amended (the “Securities Act”), as well as exemptions
under certain state securities laws for nonpublic offerings, and that it makes the representations,
declarations and warranties as contained in this Section 3.29 with the intent that the same
shall be relied upon in determining its suitability as an acquirer of such Parent Common Stock.

(e) Such Owner is an “Accredited Investor” as defined in Rule 501 of Regulation D and has such
knowledge and experience in financial and business matters that it is capable of evaluating the
merits and risks of an investment in Parent and of making an informed investment decision.

(f) Such Owner is aware that it cannot sell or otherwise transfer the Parent Common Stock
without registration under applicable securities laws or without an exemption therefrom, and is
aware that it will be required to bear the financial risks of its purchase for an indefinite period
of time because, among other reasons, the Parent Common Stock of Parent acquired hereunder has not
been registered with any regulatory authority and, therefore, cannot be transferred or resold
unless subsequently registered under applicable securities laws or an exemption from such
registration is available. Such Owner also understands that Parent is under no obligation to
register the Parent Common Stock acquired hereunder on its behalf or to assist it in complying with
any exemption from registration under applicable securities laws.

(g) Such Owner recognizes that no federal or state agency has recommended or endorsed the
Election to receive Parent Common Stock or passed upon the adequacy or accuracy of the information
set forth herein, and that Parent is relying on the truth and accuracy of the representations,
declarations and warranties made by such Owner as contained herein in issuing such stock.

(h) Such Owner has at all times been given the opportunity to obtain reasonably requested
additional information, to verify the accuracy of the information received and to ask questions of
and receive answers from certain representatives of Parent concerning the terms and conditions of
such Owner’s investment in Parent and the nature and prospects of Parent’s business.

(i) Such Owner is acquiring the Parent Common Stock for investment for its own account and not
with a view to or for sale in connection with any distribution of the Parent Common Stock to or for
the accounts of others. Such Owner agrees that it will not dispose of the Parent Common Stock, or
any portion thereof or interest therein, unless and until counsel for Parent shall have determined
that the intended disposition is permissible and does not violate the Securities Act or the rules
and regulations of the SEC thereunder, or the provisions of any applicable state securities laws,
or any rules or regulations thereunder.

(j) Such Owner understands and agrees that depending upon its state of residence, a legend in
substantially the following form may be placed on all certificates evidencing the shares of Parent
Common Stock:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) NOR ANY APPLICABLE STATE
SECURITIES LAWS BY REASON OF SPECIFIC EXEMPTIONS THEREUNDER RELATING TO THE LIMITED
AVAILABILITY OF THE OFFERING. THESE SECURITIES CANNOT BE SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF TO ANY PERSON OR ENTITY UNLESS SUBSEQUENTLY REGISTERED UNDER
THE ACT AND THE [SPECIFIC STATE SECURITIES CODE], IF SUCH REGISTRATION IS REQUIRED.

Section 3.29. No Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS
AND WARRANTIES CONTAINED IN THIS ARTICLE III (INCLUDING THE SCHEDULES), NEITHER THE COMPANY
NOR THE OWNERS MAKE ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY.

 

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER AND MERGER SUB

Parent and Merger Sub hereby represent and warrant to the Company and the Owners that:

Section 4.1. Existence and Qualification. Each of Parent and Merger Sub is a
corporation duly organized, validly existing and in good standing under the laws of the State of
Delaware; has the corporate power to own, manage, lease and hold its properties and to carry on its
business as and where such properties are presently located and such business is presently
conducted; and is duly qualified to do business and is in good standing as a foreign corporation in
each of the jurisdictions where the character of its properties or the nature of its business
requires it to be so qualified.

Section 4.2. Authority, Approval and Enforceability. This Agreement has been duly
executed and delivered by Parent and Merger Sub and each of Parent and Merger Sub has all requisite
corporate power and legal capacity to execute and deliver this Agreement, to consummate the
transactions contemplated hereby, and to perform its obligations hereunder. The execution and
delivery of this Agreement and the performance of the transactions contemplated hereby has been
duly and validly authorized and approved by all corporate action necessary on behalf of Parent and
Merger Sub. This Agreement constitutes the legal, valid and binding obligation of Parent,
enforceable in accordance with its terms, except as such enforcement may be limited by general
equitable principles or by applicable bankruptcy, insolvency, moratorium, or similar laws and
judicial decisions from time to time in effect which affect creditors’ rights generally.

Section 4.3. No Default or Consents. Neither the execution and delivery of this
Agreement nor the carrying out of the transactions contemplated hereby will:

(i) violate or conflict with any of the terms, conditions or provisions of Parent’s or Merger
Sub’s certificate of incorporation or bylaws;

(ii) violate any Legal Requirements applicable to Parent or Merger Sub;

(iii) violate, conflict with, result in a breach of, constitute a default under (whether with
or without notice or the lapse of time or both), or accelerate or permit the acceleration of the
performance required by, or give any other party the right to terminate, any contract or Permit
applicable to Parent or Merger Sub;

(iv) result in the creation of any lien, charge or other encumbrance on any property of Parent
or Merger Sub; or

(v) require Parent or Merger Sub to obtain or make any waiver, consent, action, approval or
authorization of, or registration, declaration, notice or filing with, any private non-governmental
third party or any Governmental Authority, except with respect to the HSR Act, defined below.

Section 4.4. No Proceedings. No suit, action or other proceeding is pending or, to
Parent’s knowledge, threatened before any Governmental Authority seeking to restrain Parent or
Merger Sub or prohibit their entry into this Agreement or prohibit the Closing, or seeking Damages
against Parent or Merger Sub or their properties as a result of the consummation of this Agreement.

Section 4.5. Brokers or Finders’ Fees. No broker, finder or investment banker is
entitled to any brokerage, finder’s or other fee or commission in connection with the transactions
contemplated by this Agreement based upon any arrangements made by or on behalf of Parent or Merger
Sub.

 

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Section 4.6. Parent SEC Filings.

(a) Parent has filed or furnished all reports, schedules, forms, statements and other
documents required to be filed or furnished by Parent with the SEC under the Securities Act or the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) since December 31, 2010
(the “Parent SEC Documents”).

(b) As of its respective filing date, or, if amended, as of the date of the last amendment
prior to the date of this Agreement, each Parent SEC Document complied in all material respects
with the requirements of the Exchange Act or the Securities Act, as the case may be, and the rules
and regulations of the SEC promulgated thereunder applicable to such Parent SEC Document, and did
not contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of the circumstances
under which they were made, not misleading.

(c) The consolidated financial statements of Parent included in the Parent SEC Documents
(including, in each case, any notes or schedules thereto) (the “Parent Financial
Statements”), comply as to form in all material respects with applicable accounting
requirements and the published rules and regulations of the SEC with respect thereto. The Parent
Financial Statements fairly present in all material respects the financial condition and the
consolidated results of operations and cash flows of Parent (on a consolidated basis) as of the
respective dates of and for the periods referred to in the Parent Financial Statements, all in
accordance with GAAP (except as otherwise noted therein), subject, in the case of interim Parent
Financial Statements, to normal year-end adjustments and the absence of notes.

Section 4.7. No Undisclosed Liabilities. Except (a) as reflected or reserved against
in Parent’s consolidated balance sheets (or the notes thereto) included in the Parent’s Annual
Report on Form 10-K for the year ended December 31, 2010, (b) as permitted or contemplated by this
Agreement, (c) for liabilities and obligations incurred since December 31, 2010 in the ordinary
course of business and (d) for liabilities or obligations which have been discharged or paid in
full in the ordinary course of business, neither Parent nor any subsidiary of Parent has any
liabilities or obligations of any nature, whether or not accrued, contingent or otherwise, that
would be required by GAAP to be reflected on a consolidated balance sheet of Parent and its
consolidated subsidiaries (or in the notes thereto), other than those which would not reasonably be
expected to have, individually or in the aggregate, a material impact on Parent.

Section 4.8. Absence of Certain Changes or Events. Since January 1, 2011, and through
the date of this Agreement, except as otherwise contemplated by this Agreement, there has not been
any event, change, effect, development, condition or occurrence that, individually or in the
aggregate, has been or would reasonably be expected to have, a material adverse effect on Parent
and its subsidiaries.

Section 4.9. Tax Matters. The Parent and its subsidiaries file their U.S. federal
income tax returns on a consolidated basis pursuant to a valid election made in accordance with
Treasury regulations Section 1.1502-75.

Section 4.10. Financial Ability to Perform. Parent has delivered to the Company true
and correct copies of the commitment letters of U.S. Bank National Association, Regions Bank,
SunTrust Bank, Branch Banking and Trust Company, KeyBank National Association, and Stifel Bank &
Trust (together, the “Debt Commitment Letters”). Assuming Parent receives the debt
financing contemplated by the Debt Commitment Letters, the proceeds of such debt financing,
together with Parent’s available cash, will be sufficient to satisfy all of Parent’s obligations
under this Agreement. Since the date of their execution, there has not been any change or
modification to any of the Debt Commitment Letters. Parent has not received any notice from any
lender that it does not intend to proceed with the debt financing contemplated by a Debt Commitment
Letter and Parent has no reason to believe that any lender will fail to so proceed.

 

23

 

ARTICLE V

OBLIGATIONS PRIOR TO CLOSING

From the date of this Agreement until the Closing:

Section 5.1. Parent’s Access to Information and Properties. The Company shall permit
Parent and its authorized employees, agents, accountants, legal counsel and other representatives
to have access to the books, records, senior executives, counsel, accountants, and other
representatives of the Company at all times reasonably requested by Parent upon reasonable notice,
and in coordination with the Company, for the purpose of conducting an investigation of the
Company’s financial condition, corporate status, operations, prospects, business and Properties.
The Company shall make available to Parent for examination and reproduction all documents and data
of every kind and character relating to the Company in possession or control of, or subject to
reasonable access by, the Company and/or the Owners, including, without limitation, all files,
records, data and information relating to the Properties (whether stored in paper, magnetic or
other storage media) and all agreements, instruments, contracts, assignments, certificates, orders,
and amendments thereto. Also, the Company shall allow Parent access to, and the right to inspect,
its Properties, except to the extent that such Properties are operated by a third-party operator,
in which case the Company shall use reasonable commercial efforts to cause the operator of such
Properties to allow Parent access to, and the right to inspect, such Properties. The Company may
limit the access granted pursuant to this Section 5.1 to, other things, preserve the
confidential nature of this Agreement and the transactions contemplated hereby. Parent further
agrees that all information derived by Parent or any of its authorized representatives as a result
of the above shall be governed by the terms and conditions of that certain Mutual Confidentiality
Agreement between Parent and the Company dated June 22, 2011. Without limiting the foregoing,
neither Parent nor any of its representatives shall communicate with any customer, vendor or other
third party with whom the Company or the Subsidiary has business dealings in connection with this
Agreement or the transactions contemplated hereunder unless (i) a representative of the Company is
permitted to participate in such communications, or (ii) the Company has been given prior notice.

Section 5.2. Company’s Conduct of Business and Operations. The Company and each Owner
severally shall keep Parent reasonably advised as to all material operations and proposed material
operations relating to the Company. The Company shall and shall cause the Subsidiary to, use all
reasonable commercial efforts to (a) conduct its business in the ordinary course, (b) keep
available the services of present employees, (c) maintain and operate its Properties in a good and
workmanlike manner, (d) pay or cause to be paid all costs and expenses (including but not limited
to insurance premiums) incurred in connection therewith in a timely manner, (e) keep all Contracts
listed or required to be listed in Schedule 3.13 in full force and effect, (f) comply with
all of the material covenants contained in all such Contracts, (g) maintain in force until the
Closing Date insurance policies equivalent to those in effect on the date hereof, (h) comply in all
material respects with all applicable Legal Requirements, and (i) preserve the present
relationships of the Company with customers, suppliers and other Persons having significant
business relations therewith.

Section 5.3. General Restrictions. Except as otherwise expressly permitted in this
Agreement, without the prior written consent of Parent, which consent shall not be unreasonably
withheld, the Company shall not and shall not permit the Subsidiary to:

(a) declare, set aside or pay any dividends, or make any distributions or other payments in
respect of its equity securities, or repurchase, redeem or otherwise acquire any such securities;

(b) merge into or with or consolidate with, any other corporation or acquire the business or
any substantial portion of the assets of any Person;

(c) purchase any securities of any Person;

(d) amend its certificate of incorporation or bylaws;

 

24

 

(e) issue any capital stock or other securities, or grant, or enter into any agreement to
grant, any Options, convertibility rights, other rights, warrants, calls or agreements relating to
its securities;

(f) create, incur, assume, guarantee or otherwise become liable or obligated with respect to
any Funded Indebtedness (other than in accordance with the Contracts set forth on
Schedule 2.7), or make any loan or advance to, or any investment in, any Person;

(g) become a party to or bound by any Contract of the type described in
Section 3.13(a), whether written or oral;

(h) amend or terminate any Contract listed or required to be listed in Schedule 3.13;

(i) sell, transfer, lease, mortgage, encumber or otherwise dispose of, or agree to sell,
transfer, lease, mortgage, encumber or otherwise dispose of, any Properties except (i) in the
ordinary course of business, or (ii) pursuant to any Contract specified in Schedule 3.13;

(j) settle any material claim or litigation, or file any material motions, orders, briefs or
settlement agreements in any proceeding before any Governmental Authority or any arbitrator;

(k) incur or approve, or enter into any Contract to make, any capital expenditures in excess
of $100,000 (other than those required pursuant to any Contract specified in Schedule
3.13);

(l) maintain its books of account other than in the usual, regular and ordinary manner on a
basis consistent with prior periods or make any change in any of its accounting methods or
practices except as may be required by a change in GAAP;

(m) make any material change to any Contract with any of the customers listed or required to
be listed in Schedule 3.19;

(n) accelerate collection of any notes or accounts receivable in advance of their regular due
dates or the dates when they would have been collected in the ordinary course of business
consistent with past practices;

(o) delay payment of any accrued expense, trade payable or other liability beyond its due date
or the date when such liability would have been paid in the ordinary course of business consistent
with past practices;

(p) make or change any election, change an annual accounting period, adopt or change any
accounting method, file any amended Tax Return, enter into any closing agreement, settle any Tax
claim or assessment relating to the Company or the Subsidiary, surrender any right to claim a
refund of Taxes, consent to any extension or waiver of the limitation period applicable to any Tax
claim or assessment relating to the Company or the Subsidiary, or take any other similar action, or
omit to take any action relating to the filing of any Tax Return or the payment of any Tax, if such
election, adoption, change, amendment, agreement, settlement, surrender, consent or other action or
omission would have the effect of increasing the present or future Tax liability or decreasing any
present or future Tax benefit of the Company or the Subsidiary;

(q) engage in any activity or transaction outside the ordinary course of business;

(r) enter into any transaction or make any commitment which could reasonably be expected to
result in any of the representations, warranties or covenants of the Company and/or the Owners
contained in this Agreement not being true and correct after the occurrence of such transaction or
event; or

(s) commit to do any of the foregoing.

 

25

 

Section 5.4. Notice Regarding Changes.

(a) The Company shall promptly disclose to Parent in writing any change in facts and
circumstances that renders any of the representations and warranties made herein by the Company
inaccurate or misleading in any material respect if such representations and warranties had been
made as of the date of the occurrence of the fact or circumstance in question.

(b) Parent shall promptly inform the Owners’ Representative in writing of any change in facts
and circumstances that could reasonably be expected to render any of the representations and
warranties made herein by Parent inaccurate or misleading in any material respect if such
representations and warranties had been made as of the date of the occurrence of the fact or
circumstance in question.

Section 5.5. Ensure Conditions Met. Subject to the terms and conditions of this
Agreement, each party hereto shall severally use all reasonable commercial efforts to take or cause
to be taken all actions and do or cause to be done all things required under applicable Legal
Requirements in order to consummate the transactions contemplated hereby, including, without
limitation, (i) obtaining all Permits, authorizations, consents and approvals of any Governmental
Authority or other Person which are required for or in connection with the consummation of the
transactions contemplated hereby and by the Collateral Agreements, (ii) taking any and all
reasonable actions necessary to satisfy all of the conditions to each party’s obligations hereunder
as set forth in Article VI, and (iii) executing and delivering all agreements and documents
required by the terms hereof to be executed and delivered by such party on or prior to the Closing;
provided, however, that nothing in this Section 5.5 shall require any party
to (x) divest to others or hold separate any of its assets or businesses or (y) pay any monies or
incur any material liability that is not contemplated by a Contract or Legal Requirement that is
currently in existence.

Section 5.6. Employee Matters.

(a) From the date of this Agreement until the Closing, the Company shall take all actions
necessary or appropriate to cause each Plan or Benefit Program or Agreement in effect on the date
of this Agreement to remain in full force and effect.

(b) Upon consent of the Company (which consent will not be unreasonably withheld, conditioned
or delayed), Parent may contact and make arrangements with the Company’s employees for the purpose
of discussing their continued employment with the Surviving Corporation after the Closing and for
the purpose of ensuring the continuity of the Surviving Corporation’s business, and the Company
agrees not to discourage any such employees from consulting with Parent with respect thereto.

Section 5.7. Cooperation with Respect to Financing.

(a) Parent shall use commercially reasonable efforts to take, or cause to be taken, all
actions necessary, proper or advisable to consummate the financing contemplated by the Debt
Commitment Letter at or prior to Closing. Parent will from time to time provide such information
as the Company may reasonably request regarding the status of such financing, and will notify the
Company if parent has reason to believe that the financing contemplated by the Debt Commitment
Letter will not be available to Parent or Merger Sub on the Closing Date.

(b) The Company agrees to provide, and shall cause the Subsidiary and its officers, employees
and advisers to provide, commercially reasonable cooperation in connection with the arrangement of
Parent’s debt financing for the transactions contemplated by this Agreement, including without
limitation, (i) upon reasonable notice and at reasonable times, making senior management reasonably
available to participate in lender and rating agency meetings and due diligence sessions,
(ii) cooperating in Parent’s preparation of bank/lender and/or rating agency presentations,
offering memoranda, and similar documents, (iii) provided that no obligations arise unless there is
a Closing hereunder, executing and delivering in the name and on behalf of the Company and/or the
Subsidiary, any commitment letters, pledge and security documents, other definitive financing
documents or other reasonably requested certificates or documents, and (iv) using reasonable
commercial efforts to obtain, at Parent’s sole expense, customary certificates of the Company’s
chief financial officer, comfort letters of accountants and legal opinions as may be reasonably
requested by Parent; provided, however, that nothing in this Section 5.7
shall require the Company to (i) incur any financial obligation prior to the Closing, or (ii)
engage in any activities that could reasonably be expected to interfere in any material respect
with the operation of its business.

 

26

 

Section 5.8. No Shop. From the date of this Agreement until the earlier of (i) the
Closing Date, or (ii) the termination of this Agreement, the Company and each Owner severally shall
not, and the Company and each Owner severally shall cause the Company’s officers, directors,
employees and other agents not to, directly or indirectly, take any action to solicit, initiate or
encourage any offer or proposal or indication of interest in a merger, consolidation or other
business combination involving any equity interest in, or a substantial portion of the assets of
the Company, other than in connection with the transactions contemplated by this Agreement. The
Company shall immediately advise Parent of the terms of any offer, proposal or indication of
interest that it receives or otherwise becomes aware of.

Section 5.9. Hart-Scott-Rodino. The parties hereto specifically agree to promptly
prepare and file their respective Notification and Report Forms under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (“HSR Act”), in accordance with applicable
law, if such filings are required under applicable law with respect to this Agreement and the
transactions contemplated hereby. Each of the parties hereto shall furnish to the others such
information and assistance as any other party may reasonably request in connection with the
preparation of any such HSR Act filings or submissions and provide the others with copies of all
correspondence, filings or communications (or memoranda setting forth the substance thereof)
between such party or any of its representatives, on the one hand, and any Governmental Authority
or members of their respective staffs, on the other hand, with respect to this Agreement and the
transactions contemplated hereby.

Section 5.10. Notice of Appraisal Rights and Action by Written Consent. Within three
Business Days after the date of this Agreement, in accordance with the DGCL, the Company shall
prepare and mail a notice (the “Stockholder Notice”), in a form reasonably acceptable to
Parent, to every holder of Company Common Stock that did not execute this Agreement or a written
consent effecting approval of this Agreement and the transactions contemplated hereby. The
Stockholder Notice shall (a) provide the holders of Company Common Stock to whom it is sent with
notice of the actions taken in such written consent, including the approval of the Merger, and (b)
notify such holder of their dissent and appraisal rights pursuant to Section 262 of the DGCL. The
Stockholder Notice will include therewith a copy of Section 262 of the DGCL and be sufficient in
form and substance to start the twenty (20)-day period during which a holder of Company Common
Stock must demand appraisal of such holder’s shares of Common Stock as contemplated by Section
262(d)(2) of the DGCL. The Company shall give Parent (i) prompt notice of any demands for
appraisal of shares received by the Company, and (ii) the opportunity to participate with the
Company in all negotiations and proceedings with respect to any such demands. The Company shall
not voluntarily make any payment with respect to any demands for appraisal and shall not, except
with the prior written consent of Parent, settle or offer to settle any such demands.

ARTICLE VI

CONDITIONS TO THE PARTIES’ OBLIGATIONS

Section 6.1. Conditions to Obligations of the Company. The obligations of the Company
to carry out the transactions contemplated by this Agreement are subject, at the option of the
Company, to the satisfaction or waiver by the Company of the following conditions:

(a) All representations and warranties of Parent contained in this Agreement shall be true and
correct in all material respects at and as of the Closing, and Parent shall have performed and
satisfied in all material respects all covenants and agreements required by this Agreement to be
performed and satisfied by Parent at or prior to the Closing, including delivery of the items set
forth in Section 2.8(b).

 

27

 

(b) As of the Closing Date, no suit, action or other proceeding (excluding any such matter
initiated by or on behalf of the Company, any Owner or any of their Affiliates) shall be pending or
threatened before any Governmental Authority seeking to restrain the Company or prohibit the
Closing or seeking Damages against any Owner as a result of the consummation of this Agreement.

(c) If so requested by the Company, Parent shall have furnished the Company with a certified
copy of all necessary corporate action on its behalf approving its execution, delivery and
performance of this Agreement.

(d) The Company shall have received evidence, in form and substance satisfactory to the
Company, of the termination or expiration of the HSR Act waiting period related to the Merger, and
the consent to the transactions contemplated by this Agreement of all Governmental Authorities.

Section 6.2. Conditions to Obligations of Parent. The obligations of Parent to carry
out the transactions contemplated by this Agreement are subject, at the option of Parent, to the
satisfaction or waiver by Parent of the following conditions:

(a) All representations and warranties of the Company and the Owners contained in this
Agreement shall be true and correct in all material respects at and as of the Closing, and (ii) the
Company and the Owners shall have performed and satisfied in all material respects all agreements
and covenants required by this Agreement to be performed and satisfied by them at or prior to the
Closing, including the items set forth in Section 2.8(a).

(b) As of the Closing Date, no suit, action or other proceeding (excluding any such matter
initiated by or on behalf of Parent or any of its Affiliates) shall be pending or threatened before
any court or governmental agency seeking to restrain Parent or prohibit the Closing or seeking
Damages against Parent or the Company or its Properties as a result of the consummation of this
Agreement.

(c) The Company shall have furnished Parent with a certified copy of all necessary corporate
and stockholder action on its behalf approving the Company’s execution, delivery and performance of
this Agreement and the Merger.

(d) Parent shall have received the opinion letter of Baker & Daniels LLP, counsel to the
Company (“Company Counsel”), dated as of the Closing Date, addressed to Parent and
containing such exceptions and assumptions and in form and substance which are reasonably
satisfactory to Parent, and addressing the legal opinions substantially similar to those set forth
on Exhibit A hereto. In rendering such opinion letter, Company Counsel may rely as to
factual matters on certificates of officers, directors and stockholders of the Company and on
certificates of governmental officials.

(e) Except for matters disclosed in Schedule 3.9(a) or Schedule 3.9(b) hereto,
since the Balance Sheet Date and up to and including the Closing, there shall not have been any
Material Adverse Effect.

(f) Parent shall have received evidence that the agreements set forth on
Schedule 6.2(f) hereto have been terminated.

(g) Parent shall have received evidence, in form and substance satisfactory to Parent, of (x)
the termination or expiration of the HSR Act waiting period related to the Merger, and (y) the
consent to the transactions contemplated by this Agreement of all Persons, Governmental
Authorities, quasi-governmental and private third parties (including, without limitation, Persons
leasing real or personal property to the Company) listed on Schedule 6.2(g).

(h) No proceeding in which the Company, the Subsidiary or any Owner shall be a debtor,
defendant or party seeking an order for its own relief or reorganization shall have been brought or
be pending by or against such Person under any United States or state bankruptcy or insolvency law.

 

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(i) Parent shall have received copies of the Pay-Off Letters and other evidence, reasonably
satisfactory to it, setting forth the amount of funds necessary for the termination, at or prior to
Closing, of all Funded Indebtedness and any and all Liens, other than Permitted Liens, that
encumber the Company’s Properties pursuant thereto.

(j) Parent shall have obtained financing for the transactions contemplated hereby on
substantially the terms set forth on the Debt Commitment Letter or reasonably equivalent substitute
terms.

(k) Parent shall have received all audited historical and unaudited pro forma Financial
Statements with respect to the Company, if any, together with any required consent of the Company’s
independent public accountants, that may be required to be included in Parent’s Current Report on
Form 8-K to be filed in connection with this Agreement and the Merger.

(l) Parent shall have received from the Company (i) evidence that upon the Effective Time the
Bonus Plans shall be terminated, (ii) a certificate setting forth the amounts owed pursuant to the
Bonus Plans through the Closing Date, and (iii) written acknowledgements from the participants
under the Bonus Plans that upon receipt of such payments the Company shall have satisfied its
obligations under the Bonus Plans in full.

ARTICLE VII

POST-CLOSING OBLIGATIONS

Section 7.1. Further Assurances. Following the Closing, the parties hereto shall
severally execute and deliver such documents, and take such other action, as shall be reasonably
requested by any other party hereto to carry out the transactions contemplated by this Agreement.
If, at any time after the Effective Time, any further assignments or assurances in law or any other
things are necessary or desirable to vest or to perfect or confirm of record in the Surviving
Corporation the title to any properties or rights of the Company and/or Merger Sub, or otherwise to
carry out the provisions of this Agreement, the officers and directors of the Surviving Corporation
are hereby authorized and empowered, in the name of and on behalf of the Company and/or Merger Sub,
to execute and deliver any and all things necessary or proper to vest or perfect or confirm title
to such properties or rights in the Surviving Corporation, and otherwise to carry out the purposes
and provisions of this Agreement.

Section 7.2. Publicity. None of the parties hereto shall issue or make, or cause to
have issued or made, any public release or announcement concerning this Agreement or the
transactions contemplated hereby, without the advance approval in writing of the form and substance
thereof by Parent and the Owners’ Representative, except as required by any applicable Legal
Requirements (in which case, so far as possible, there shall be consultation among Parent and the
Owners’ Representative prior to such announcement), and Parent and the Owners’ Representative shall
endeavor jointly to agree on the text of any public release or announcement so approved or
required. For purposes of clarity, the parties acknowledge that disclosures by the Company to its
stockholders concerning the terms and conditions of this Agreement to enable such stockholders to
comply with reporting obligations owed to their direct and indirect owners shall not be deemed to
be “public disclosures.” Notwithstanding the foregoing, following the Closing and without any
further consent required, any party may disclose (a) to its lenders and direct and indirect owners
such information about this Agreement and the transactions consummated hereunder as is customary
for transactions of this nature and (b) to the public generally, via press release, web site
disclosures, published “tombstones” and the like, the fact of this transaction without disclosing
any of the material terms of this Agreement, including, without limitation, the amount of the
Merger Consolidation.

Section 7.3. Post-Closing Indemnity.

(a) Subject to Section 9.1, from and after the Closing, the Owners shall severally (in
accordance with each Owner’s Proportionate Share) indemnify and hold harmless Parent and its
Affiliates, directors, officers and employees from and against any and all Damages arising out of,
resulting from or in any way related to a breach of, inaccuracy in, or the failure to perform or
satisfy any of, the representations, warranties, covenants and agreements made by the Company in
this Agreement (it being agreed that, for purposes of this Section 7.3 and Section
9.1, all qualifications and exceptions relating to materiality, Material Adverse Effect or
words of similar import (but not specific dollar thresholds) shall be disregarded). Any payment
made to Parent pursuant to the indemnification obligations under this Section 7.3 shall
constitute a reduction in the Merger Consideration paid hereunder.

 

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(b) Subject to Section 9.1, from and after the Closing, each Owner shall indemnify and
hold harmless Parent from and against any and all Damages arising out of, resulting from, or in any
way related to a breach of, inaccuracy in, or failure to perform or satisfy any of the
representations, warranties, covenants and agreements made by such Owner (but no other Owner) in
this Agreement.

(c) Subject to Section 9.1, from and after the Closing, Parent shall indemnify and
hold harmless each Owner and its Affiliates, directors, officers and employees from and against any
and all Damages arising out of, resulting from or in any way related to a breach of, inaccuracy in,
or the failure to perform or satisfy any of, the representations, warranties, covenants and
agreements made by Parent in this Agreement (it being agreed that, for purposes of this Section
7.3 and Section 9.1, all qualifications and exceptions relating to materiality,
material adverse effect or words of similar import (but not specific dollar thresholds) shall be
disregarded).

(d) THE RIGHTS OF INDEMNITY PROVIDED IN THIS SECTION 7.3 AND IN SECTION 8.2
AND SECTION 9.3 ARE THE PARTIES’ SOLE AND EXCLUSIVE REMEDY AFTER THE EFFECTIVE TIME
RELATING IN ANY WAY TO BREACHES OF REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN.

Section 7.4. Non-Competition, Non-Solicitation and Non-Disclosure.

(a) General. In consideration of the payment of the Merger Consideration, and in
order to induce Parent to enter into this Agreement and to consummate the transactions contemplated
hereby, each of the Management Owners and Non-Management Owners, as applicable, hereby severally
covenants and agrees as follows:

(i) Without the prior written consent of Parent, no Management Owner nor any of his Affiliates
shall for a period of five (5) years from the Closing Date: (1) directly or indirectly through
another Person acquire or own in any manner any interest in any Person, firm, partnership,
corporation, association or other Person that engages in any Competing Business anywhere in the
United States (the “Territory”), except for ownership of the Parent Common Stock and
passive ownership of one percent (1%) or less of any other Person whose securities have been
registered under the Securities Act or Section 12 of the Exchange Act; or (2) be employed by or
serve as an employee, agent, officer, director of, or as an independent contractor as a consultant
to, any Person that engages in any Competing Business within the Territory.

(ii) Without the prior written consent of Parent, no Non-Management Owner nor any of its
Affiliates (it being understood that for purposes of this Section 7.4 “Affiliates” shall
not include a Non-Management Owner’s limited partners or investors) shall for a period of three (3)
years from the Closing Date, directly or indirectly through another Person, acquire or own (except
for ownership of the Parent Common Stock and passive ownership of one percent (1%) or less of any
other Person whose securities have been registered under the Securities Act or Section 12 of the
Exchange Act) in any manner any interest in (1) any of the Persons identified on Schedule
7.4(a)(ii) or their respective subsidiaries or divisions that engage in a Competing Business;
or (2) any Greenfield Competing Business.

(iii) Each Owner acknowledges and agrees that (A) it or he is selling the goodwill of the
Company’s and the Subsidiary’s business and is disposing of all of its or his ownership interest in
the Company in return for the consideration provided for in this Agreement; (B) that the
consideration provided for in this Agreement is fair and adequate to compensate him for the
goodwill of the Company’s and the Subsidiary’s business and his ownership interest therein sold
pursuant hereto; (C) the covenants set forth above are reasonable and necessary in terms of scope,
duration, area and line of business; and (D) the covenants set forth above are intended to protect
the Company’s and the Subsidiary’s legitimate business interests in light of the Surviving
Corporation’s (and its Affiliates’) intention to carry on a like business to that presently
operated by the Company. Each Owner expressly authorizes the enforcement of the covenants provided
for in this Section 7.4(a) by (1) the Surviving Corporation and the Subsidiary, (2) the
Surviving Corporation’s permitted assigns, and (3) any successors to the Surviving Corporation’s
business.

 

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(iv) Without the prior consent of the Surviving Corporation, no Owner shall for a period of
five (5) years from the Closing Date, directly or indirectly, on behalf of himself, itself or any
other Person, (A) attempt to employ or enter into any contractual arrangement with any employee or
former employee of the Surviving Corporation or the Subsidiary, other than an Owner, unless such
employee or former employee has not been employed by the Surviving Corporation or the Subsidiary
for a period in excess of nine (9) months, (B) call on or solicit any of the actual or targeted
prospective customers of the Surviving Corporation or the Subsidiary for any purpose related to
selling any services for any Competing Business, (C) make known any Confidential Information
relating in any way to the Surviving Corporation’s or the Subsidiary’s trade or business
relationships with its customers, nor (D) disparage or induce any other person to disparage Parent,
the Surviving Corporation or any of their respective subsidiaries or Affiliates, or otherwise
engage in any conduct that is injurious to Parent’s or the Surviving Corporation’s or the
Subsidiary’s reputation or interests.

(b) Confidential Information.

(i) For a period of five (5) years from the Closing Date, no Owner shall divulge, communicate
or use to the detriment of the Surviving Corporation or the Subsidiary or for the benefit of any
other Person or Persons, any Confidential Information or Trade Secrets (collectively,
“Surviving Corporation Information”) pertaining to the Surviving Corporation or any of its
Affiliates. Any Surviving Corporation Information now known, known as of the Closing Date, or
acquired after the Closing Date pursuant to this Agreement by any Owner with respect to the
Surviving Corporation or any of its Affiliates shall be deemed a valuable, special and unique asset
of the Surviving Corporation that is received by such Owner in confidence. Each Owner will take
reasonable steps to protect the Surviving Corporation Information from disclosure. Notwithstanding
the foregoing, this Section 7.4(b) shall not apply with respect to (i) any Surviving
Corporation Information that is required to be disclosed by the Owners or their Affiliates as a
result of any Legal Requirement, or (ii) any disclosures otherwise permitted under Section
7.2.

(ii) All Confidential Information shall be the exclusive property of the Surviving Corporation
and shall not be copied, duplicated, replicated, transformed, modified or removed from the premises
of the Surviving Corporation except pursuant to the business of the Surviving Corporation and shall
be returned immediately to the Surviving Corporation on the Surviving Corporation’s request at any
time or destroyed and confirmed so in writing. Notwithstanding the foregoing sentence,
Confidential Information prepared solely by the Owners’ shall remain the property of such Owners
and not subject to this Section 7.4(b)(ii) but shall retain its character as confidential
and subject to the prohibitions on disclosure set forth herein.

(c) Use of Names. No Owner shall, directly or indirectly, use the name “Prime
Logistics Corp.,” “Prime Distribution Services” or any derivative thereof for any commercial
purpose whatsoever except in connection with disclosures via press release, web site disclosures,
published “tombstones” and the like permitted under Section 7.2.

(d) Injunction. It is recognized and hereby acknowledged by the parties hereto that a
breach or violation by any Owner or his or its Affiliates of any or all of the covenants and
agreements contained in this Section 7.4 may cause irreparable harm and damage to Surviving
Corporation or the Subsidiary in a monetary amount which may be virtually impossible to ascertain.
As a result, such Owner recognizes and hereby acknowledges that Parent, the Surviving Corporation
and the Subsidiary shall be entitled to an injunction from any court of competent jurisdiction
enjoining and restraining any breach or violation of any or all of the covenants and agreements
contained in this Section 7.4 by such Owner and/or his or its associates, Affiliates,
partners or agents, either directly or indirectly, and that such right to injunction shall be
cumulative and in addition to whatever other rights or remedies Parent, the Surviving Corporation
and/or the Subsidiary may possess hereunder, at law or in equity. Nothing contained in this
Section 7.4(d) shall be construed to prevent Parent, Surviving Corporation or the
Subsidiary from seeking and recovering from such Owner (or his or its Affiliates) Damages sustained
by it as a result of any breach or violation by such party of any of the covenants or agreements
contained herein.

 

31

 

(e) Savings Provisions. If at the time of enforcement of any of the covenants
contained in Section 7.4(a) above (the “Protective Covenants”), a court shall hold
that the duration, scope or area restrictions stated therein are unreasonable under circumstances
then existing, the parties agree that the maximum duration, scope or area reasonable under such
circumstances shall be substituted for the stated duration, scope or area and that the court shall
be allowed and directed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law. Each Owner has consulted with legal counsel regarding the
Protective Covenants and based on such consultation has determined and hereby acknowledges that the
Protective Covenants: (i) protect a legitimate business interest; (ii) do not place an undue burden
on him; (iii) are reasonable in terms of duration, the scope and area restrictions and are
necessary to protect the goodwill of the business of the Surviving Corporation and its Affiliates
(including Parent) and the substantial investment in the Surviving Corporation made by Parent
pursuant to this Agreement; and (iv) are not adverse to the public welfare. Each Owner further
acknowledges and agrees that the Protective Covenants are being entered into by him or it in
connection with the sale by such Owner of the goodwill of the business of the Surviving Corporation
pursuant to this Agreement and not directly or indirectly in connection with any other relationship
with Parent or any of its Affiliates.

Section 7.5. Stock Exchange Listing; SEC Reports. Parent shall use commercially
reasonable efforts to cause the shares of Parent Common Stock issued pursuant to this Agreement to
be approved for listing on the New York Stock Exchange, subject to official notice of issuance,
prior to the Closing Date. Parent shall also use commercially reasonable efforts to file timely
all reports required to be filed by Parent under the Exchange Act to assure that the Parent Common
Stock issued pursuant to this Agreement is eligible for sale under Rule 144 of the Securities Act.

ARTICLE VIII

TAX MATTERS

Section 8.1. Representations and Obligations Regarding Taxes. The Company represents
and warrants to, and agrees with, Parent that, except as set forth in Schedule 8.1 hereto:

(a) Each of the Company and the Subsidiary has filed all Tax Returns that it has been required
to file. All such Tax Returns were correct and complete in all material respects. All Taxes owed
by the Company and the Subsidiary (whether or not shown on any Tax Return and whether or not any
Tax Return was required) have been paid. Neither the Company nor the Subsidiary is currently the
beneficiary of any extension of time within which to file any Tax Return. No claim has ever been
made by a taxing authority in a jurisdiction where the Company or the Subsidiary does not file Tax
Returns that it is or may be subject to taxation by that jurisdiction. There are no Liens on any
of the Properties of the Company or the Subsidiary that arose in connection with any failure (or
alleged failure) to pay any Tax, except for Liens for Taxes not yet due. Each of the Company and
the Subsidiary has since its inception filed its Tax Returns using the accrual method of
accounting.

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

(c) There is no dispute or claim concerning any Tax liability of the Company or the Subsidiary
either (i) claimed or raised by any taxing authority in writing, or (ii) as to which any Owner or
other directors or officers (or employees responsible for Tax matters) of the Company or the
Subsidiary has actual knowledge based upon personal contact with any agent of such taxing
authority. No issue relating to Taxes has been raised in writing by a taxing authority during any
pending audit or examination, and no issue relating to Taxes was raised in writing by a taxing
authority in any completed audit or examination, that reasonably can be expected to recur in a
later taxable period. The Company has delivered to Parent correct and complete copies of all
Federal income Tax and other material Returns, examination reports and statements of deficiencies
assessed against or agreed to by the Company or the Subsidiary since December 31, 2007.

 

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(d) Neither the Company nor the Subsidiary has waived any statute of limitations in respect of
Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.

(e) Neither the Company nor the Subsidiary is a party to any Tax allocation or sharing
agreement.

(f) The unpaid Taxes of the Company and the Subsidiary (i) did not, as of the most recent
fiscal month end, exceed the reserve for Tax liability (other than any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) set forth on the face of the
most recent balance sheet (rather than in any notes thereto) and (ii) do not exceed that reserve as
adjusted for the passage of time through the Closing Date in accordance with the past custom and
practice of the Company and the Subsidiary in filing its Tax Returns.

(g) Neither the Company nor the Subsidiary is a party to any joint venture, partnership or
other arrangement or contract that could be treated as a partnership for Federal income tax
purposes.

(h) Neither the Company nor the Subsidiary has entered into any sale leaseback or leveraged
lease transaction that fails to satisfy the requirements of Revenue Procedure 2001-28 (or similar
provisions of foreign law) or any safe harbor lease transaction.

(i) Neither the Company nor the Subsidiary has or had a permanent establishment in any foreign
country and does not and has not engaged in a trade or business in any foreign country.

(j) Neither the Company nor the Subsidiary has had any funded Indebtedness that (i) was
“corporate acquisition indebtedness” as defined in section 279 of the Code; (ii) bore interest any
portion of which was “disqualified interest” as defined in section 163(j)(3) of the Code, or (iii)
was an “applicable high yield discount obligation” as defined in section 168(i)(1) of the Code.
Neither the Company nor the Subsidiary has deducted any amounts that would properly be capitalized.

(k) Except as set forth on the attached “Taxes Schedule”, none of the Owners is a foreign
person within the meaning of Section 1445 of the Code.

(l) No taxing authority is asserting, or has stated in writing that it intends to assert, a
claim against the Company or the Subsidiary under or as a result of Section 482 of the Code or any
similar provision of any foreign, state or local Tax law.

(m) All material elections with respect to Taxes affecting the Company and the Subsidiary are
disclosed or attached to a Tax Return of the Company or the Subsidiary.

(n) All private letter rulings issued by the IRS to the Company or the Subsidiary (and any
corresponding ruling or determination of any state, local or foreign taxing authority) have been
disclosed in Schedule 8.1, and there are no pending requests for any such rulings (or corresponding
determinations).

(o) Neither the Company nor the Subsidiary will be required to include any items of income in,
or exclude any items of deduction from, taxable income for any taxable period (or portion thereof)
ending after the Closing Date as a result of any (i) change in method of accounting for a taxable
period ending on or prior to the Closing Date under Section 481(c) of the Code (or any
corresponding or similar provision of state, local or foreign income tax law); (ii) “closing
agreement” as described in Section 7121 of the Code (or any corresponding or similar provision of
state, local or foreign income tax law); (iii) installment sale or open transaction made on or
prior to the Closing Date; (iv) cash method or percentage of completion method of accounting; (v)
Section 108(i) of the Code; (vi) prepaid amount received on or prior to the Closing Date; or (vii)
intercompany transaction or excess loss account described in Treasury Regulations under Section
1502 of the Code (or any corresponding or similar provision of Tax law).

 

33

 

(p) Each of the Company and the Subsidiary has disclosed on its Tax Returns all positions
taken therein that could reasonably be expected to give use to a substantial understatement of Tax
within the meaning of Section 6662 of Code (or any similar provision under any state, local, or
foreign tax law).

(q) Neither the Company nor the Subsidiary has been a member of an affiliated group filing a
consolidated federal income Tax Return. The Company does not have any material liability for the
Taxes of any Person (other than Taxes of the Company) (i) under Treasury regulation Section
1.1502-6 (or any similar provision of state, local or foreign law), (ii) as a transferee or
successor, (iii) by contract, or (iv) otherwise.

(r) Neither the Company nor the Subsidiary has distributed the stock of any corporation in a
transaction satisfying the requirements of Section 355 of the Code within the last five (5) years,
and the stock of the Company has not been distributed in a transaction satisfying the requirements
of Section 355 of the Code within the last five (5) years.

(s) Neither the Company nor the Subsidiary has entered into any transaction identified as a
“reportable transaction” for purposes of Treasury regulations Sections 301.6011-4(b). If the
Company or the Subsidiary has entered into any transaction such that, if the treatment claimed by
it were to be disallowed, the transaction would constitute a substantial understatement of federal
income tax within the meaning of Section 6662 of the Code, then it believes that it has either (i)
substantial authority for the tax treatment of such transaction or (ii) disclosed on its Tax
Returns the relevant facts affecting the tax treatment of such transaction.

Section 8.2. Indemnification for Taxes.

(a) Subject to the limitations set forth in Section 9.1, the Owners shall severally
(in accordance with each Owner’s Proportionate Share) indemnify and hold harmless Parent and its
Affiliates, including, after the Closing, the Surviving Corporation (each herein sometimes referred
to as an “Indemnified Taxpayer”) against, and protect, save and hold harmless each
Indemnified Taxpayer from, any and all claims, damages, deficiencies and losses and all expenses,
including, without limitation, attorneys’, accountants’ and experts’ fees and disbursements (all
herein referred to as “Losses”) resulting from:

(i) A claim by any taxing authority for (A) except for Taxes reflected in the calculation of
Closing Date Working Capital, any Taxes of the Company or the Subsidiary allocable to any period
ending on or prior to the Closing Date or allocable to any period that begins before and ends after
the Closing Date (subject to the provisions set forth below with respect to any Straddle Period),
and (B) any Taxes of the Company or the Subsidiary as a result of the applicability of Treas. Reg.
§1.1502-6 or similar provisions of foreign, state or local Tax law for Taxes of the any other
corporation affiliated with the Company or any Company Subsidiary on or prior to the Closing Date;

(ii) A claim by any taxing authority for any Taxes arising from or occasioned by the
consummation of the Merger pursuant to this Agreement; or

(iii) Any misrepresentation or breach of any representation, warranty or obligation set forth
in this Article VIII.

In the case of Taxes that are payable with respect to any Taxable period that includes (but
does not end on) the Closing Date (a “Straddle Period”):

(A) the parties hereto shall treat the Closing Date as the last day of such period (i.e., the
parties hereto shall “close the books” effective as of 11:59 p.m. on such date) and shall elect to
do so if permitted by applicable law, and the parties acknowledge and agree that any payments made
under Section 2.5 or Section 2.7(b) shall be deemed to have been made immediately
prior to the Closing; and

 

34

 

(B) the portion of any such Tax that is allocable to the portion of the taxable period ending
on the Closing Date shall be, (a) in the case of Taxes based on income or receipts determined under
the closing of the books method and (b) in the case of other Taxes, deemed to be the amount of such
Taxes for the entire Straddle Period (after giving effect to amounts which may be deducted from or
offset against such Taxes with respect to such periods under the relevant Tax law) (or in the case
of such Taxes determined on an arrears basis, the amount of such Taxes for the immediately
preceding period), multiplied by a fraction the numerator of which is the number of days in the
Straddle Period ending on the Closing Date (including the Closing Date) and the denominator of
which is the number of days in the entire Straddle Period. Any credit or refund resulting from an
overpayment of Taxes for a Straddle Period shall be prorated based upon the method employed in this
paragraph (B).

(b) Subject to the resolution of any Tax contest pursuant to Section 8.2(c), upon
notice from Parent to Owners’ Representative that an Indemnified Taxpayer is entitled to an
indemnification payment for a Loss pursuant to Section 8.2(a), each Owner shall thereupon
pay to the Indemnified Taxpayer such Owner’s Proportionate Share of the amount that will indemnify
and hold the Indemnified Taxpayer harmless from such Loss, subject to Section 9.1(f).

(c) (i) If a claim shall be made by any taxing authority that, if successful, would result in
the indemnification of an Indemnified Taxpayer, the Indemnified Taxpayer shall promptly notify
Owners’ Representative in writing of such fact; provided, however, that any failure
to give such notice will not waive any rights of the Indemnified Taxpayer except to the extent the
rights of the indemnifying party are actually materially prejudiced.

(ii) Owners shall have the right to defend the Indemnified Taxpayer against such claim with
counsel selected by Owners’ Representative satisfactory to the Indemnified Taxpayer so long as (A)
Owners’ Representative notifies the Indemnified Taxpayer in writing within fifteen (15) days after
the Indemnified Taxpayer has given notice of such claim that Owners will indemnify the Indemnified
Taxpayer from and against the entirety of any Losses the Indemnified Taxpayer may suffer resulting
from, arising out of, relating to, in the nature of, or caused by the claim (subject to the
limitations set forth in Section 9.1), (B) Owners provide the Indemnified Taxpayer with
evidence acceptable to the Indemnified Taxpayer that Owners will have the financial resources to
defend against the claim and fulfill their indemnification obligations hereunder, (C) if the
Indemnified Taxpayer is requested to pay the Tax claimed and sue for a refund, Owners shall have
advanced to the Indemnified Taxpayer, on an interest free basis, the full amount the Indemnified
Taxpayer is required to pay, and (D) Owners conduct the defense of the claim actively and
diligently. To the extent the Indemnified Taxpayer may legally do so and to the extent that it is
compensated in advance by Owners for any out-of-pocket costs and expenses thereby incurred, the
Indemnified Party agrees to render such assistance as Owners may reasonably request in connection
with such defense.

(iii) Subject to the provisions of paragraph (ii) above, Owners shall be entitled to prosecute
such contest to a determination in a court of initial jurisdiction, and if Owners shall reasonably
request, to a determination in an appellate court.

(iv) Owners shall not without the consent of Parent, which shall not be unreasonably withheld
or delayed, be entitled to settle or to contest any claim relating to Taxes if the settlement of,
or an adverse judgment with respect to, the claim would be likely, in the good faith judgment of
the Indemnified Taxpayer, to cause the liability for any Tax of the Indemnified Taxpayer or of any
Affiliate of the Indemnified Taxpayer for any taxable period ending after the Closing Date to
increase (including, without limitation, by making any election or taking any action having the
effect of making any election, by deferring the inclusion of any amount in income or by
accelerating the deduction of any amount or the claiming of any credit) or to take a position that,
if applied to any taxable period ending after the Closing Date, would be adverse to the interest of
the Indemnified Taxpayer or any Affiliate of the Indemnified Taxpayer.

 

35

 

(v) If, after actual receipt by the Indemnified Taxpayer of an amount advanced by Owners
pursuant to paragraph (ii)(C) above, the extent of the liability of the Indemnified Taxpayer with
respect to the indemnified matter shall be established by the judgment or decree of a court that
has become final or a binding settlement with an administrative agency having jurisdiction thereof
that has become final, the Indemnified Taxpayer shall promptly pay to Owners any refund received by
or credited to the Indemnified Taxpayer with respect to the indemnified matter (together with any
interest paid or credited thereon by the taxing authority and any recovery of legal fees from such
taxing authority). Notwithstanding the foregoing, the Indemnified Taxpayer shall not be required
to make any payment hereunder before such time as Owners shall have made all payments or
indemnities then due with respect to Indemnified Taxpayer pursuant to this Article VIII.

(vi) If any of the conditions in Section 8.2(c)(ii) above are or become unsatisfied,
(A) the Indemnified Taxpayer may defend against, and consent to the entry of any judgment or enter
into any settlement with respect to, the claim in any manner it may deem appropriate (and the
Indemnified Taxpayer need not consult with, or obtain any consent from, Owner in connection
therewith), (B) Owners will reimburse the Indemnified Taxpayer (in accordance with each Owner’s
Proportionate Share) promptly and periodically for the costs of defending against the claim
(including, without limitation, attorneys’, accountants’ and experts’ fees and disbursements) and
(C) Owners will remain responsible for any Losses (in accordance with each Owner’s Proportionate
Share) the Indemnified Taxpayer may suffer to the fullest extent provided in this Section
8.2.

(d) Anything to the contrary in this Agreement notwithstanding, the indemnification
obligations of Owners under this Article VIII shall survive the Closing until the
expiration of three (3) years from the Closing Date. With respect to any indemnification
obligation for any Tax for which a taxing authority asserts a claim within ninety (90) days before
the end of such three (3) year period an Indemnified Taxpayer shall be treated as having provided
timely notice to Owners by providing written notice to Owners’ Representative on or before the
ninetieth (90th) day after the Indemnified Taxpayer’s receipt of a written assertion of
the claim by the taxing authority.

(e) All transfer, documentary, sales, use, stamp, registration and other such Taxes and fees
(including any penalties and interest) incurred in connection with this Agreement shall be paid by
Owners when due, and each Owner will, at his, her or its own expense, file all necessary Tax
Returns and other documentation with respect to all such transfer, documentary, sales, use, stamp,
registration and other Taxes and fees, and, if required by applicable law, Parent will, and will
cause its Affiliates to, join in the execution of any such Tax Returns and other documentation.

Section 8.3. Additional Agreements.

(a) The Company shall grant to Parent or its designees access at all reasonable times to all
of the Company’s books and records (including tax workpapers and returns and correspondence with
tax authorities), including the right to take extracts therefrom and make copies thereof, to the
extent such books and records relate to taxable periods ending on or prior to or that include the
Closing Date. Parent shall (i) grant to Owners’ Representative access at all reasonable times to
all of the Company’s books and records (including tax workpapers and returns and correspondence
with tax authorities), including the right to take extracts therefrom and make copies thereof, to
the extent that such books and records relate to the operations of the Company during taxable
periods ending on or prior to or that include the Closing Date, and (ii) otherwise cooperate with
Owner in connection with any audit of Taxes that relate to the business of the Company prior to
Closing.

(b) The Parent shall (at the Owners’ cost and expense (in accordance with each Owner’s
Proportionate Share) for Pre-Closing Period Returns relating to income Taxes, including that
portion of a Straddle Period Return allocable the Pre-Closing Period, and at Parent’s expense for
other Tax Returns) prepare and file (or cause the preparation of and filing) with the appropriate
governmental Persons all Tax Returns that are due after the Closing and that have not been filed
prior to the Closing. Any such Tax Return for a Straddle Period or a period ending prior to the
Closing Date (“Pre-Closing Period Return”) shall be (i) prepared by Somerset CPAs (subject
to the review and approval of Parent) consistent with past practice, except as required by law, and
(ii) furnished to the Owners’ Representative for its review at least ten (10) days prior to the due
date for filing such Tax Returns. Parent shall make such changes as reasonably requested by the
Owners’ Representative. The Owners will remit to the Parent not less than seven (7) days prior to
the due date (or extended due date) of any Pre-Closing Period Returns or any Return for a Straddle
Period (and indemnify and hold the Parent harmless from and against) all Taxes due with respect to
such Tax Returns for which the Owners are liable pursuant to Section 8.2, except to the
extent such Taxes have been paid or deposited prior to the Closing Date. The Owners and the
Owners’ Representative shall cooperate fully in connection with the preparation and filing of such
Tax Returns.

 

36

 

(c) To the extent not included as an asset in calculating Working Capital on the Closing
Payment Certificate or with respect to a carryback of a Tax attribute arising after the Closing
Date, Parent shall pay or cause payment to be made to the Owners’ Representative (for distribution
to the Equity Holders in accordance with Section 2.4 and Section 2.5) an amount
equal to all refunds of Taxes or credits against Taxes received by Parent, the Surviving
Corporation or any of their respective subsidiaries for Tax periods ending on or before the Closing
Date or that portion of Straddle Periods ending on the Closing Date. Such payments shall be made
(i) with respect to a refund, within twenty (20) days after the date such refund is received by
Parent, the Surviving Corporation or any of their respective subsidiaries, and (ii) with respect to
a credit, within twenty (20) days after the earlier of the date that (x) the credit has been
applied against any Tax or (y) a Tax Return realizing the benefit of such credit has been filed
with any Governmental Authority. Parent shall cause the Surviving Corporation to carry back any
losses for the taxable year ending with the Effective Date.

ARTICLE IX

MISCELLANEOUS

Section 9.1. Limitation on Liability.

(a) The representations, warranties, agreements, and indemnities of the Company and the Owners
set forth in this Agreement shall survive the Closing; provided, however, that the Owners shall
have no liability under this Agreement to indemnify (i) under Section 7.3(a) with respect
to breaches of the provisions of Section 3.4 (clauses (ii), (iii), (iv) and (v)), and
Section 3.5 through 3.23 (collectively, the “Business Representations”), in
each case unless the Owners’ Representative receives notice in writing from Parent of Parent’s
claim for indemnification on or before the fifteen (15)-month anniversary of the Closing Date.

(b) The Owners shall be obligated to indemnify Parent and its Affiliates severally (in
accordance with each Owner’s Proportionate Share) (i) with respect to breaches of the Business
Representations and (ii) under Section 8.2 with respect to Taxes other than income, payroll
and withholding Taxes, only if and to the extent the aggregate of all of their liability under such
indemnity obligations exceeds One Million Dollars ($1,000,000), it being understood that such One
Million Dollar ($1,000,000) figure is to serve as a “deductible” for indemnification (for example,
if the indemnity claims for which Owners would, but for the provisions of this paragraph (b), be
liable aggregate Two Million Dollars ($2,000,000), Owners would then be liable for only One Million
Dollars ($1,000,000). For purposes of clarification, all indemnity obligations of the Owners under
clauses (i) and (ii) above shall be aggregated for purposes of determining whether such One Million
Dollar ($1,000,000) deductable threshold has been met. Any Tax Cost or Tax Benefit (as defined in
Section 9.1(f)) received by Parent shall not be taken into consideration when determining
whether such One Million Dollar ($1,000,000) deductable threshold has been met. In addition, in no
event shall the aggregate indemnification liability (x) with respect to the Business
Representations and (y) under Section 8.2 with respect to Taxes other than income, payroll
and withholding Taxes, exceed Nine Million Dollars ($9,000,000).

 

37

 

(c) Parent shall be obligated to indemnify the Owners with respect to breaches of the
provisions of Section 4.3 (clauses (ii), (iii), (iv) and (v), and Sections 4.4
through 4.8 (“Parent’s Business Representations”) only if and to the extent the
aggregate of all of its liability under such indemnity obligations exceeds One Million Dollars
($1,000,000), it being understood that such One Million Dollar ($1,000,000) figure is to serve as a
“deductible” for indemnification (for example, if the indemnity claims for which Parent would, but
for the provisions of this paragraph (c), be liable aggregate Two Million Dollars ($2,000,000),
Parent would then be liable for only One Million Dollars ($1,000,000). In addition, in no event
shall the aggregate indemnification liability with respect to Parent’s Business Representations
exceed Nine Million Dollars ($9,000,000). Parent shall have no liability under this Agreement to
indemnify the Owners for Parent’s Business Representations unless Parent receives notice in writing
from Owners’ Representative of an Owner’s claim for indemnification on or before the fifteen
(15)-month anniversary of the Closing Date.

(d) For purposes of this Section 9.1(d), a party making a claim for indemnity under
this Agreement is hereinafter referred to as an “Indemnified Party” and the party against
whom such claim is asserted is hereinafter referred to as the “Indemnifying Party.” All
claims by any Indemnified Party under this Agreement shall be asserted and resolved in accordance
with the following provisions. If any claim or demand for which an Indemnifying Party would be
liable to an Indemnified Party is asserted against or sought to be collected from such Indemnified
Party by a third party, said Indemnified Party shall with reasonable promptness notify in writing
the Indemnifying Party of such claim or demand stating with reasonable specificity the
circumstances of the Indemnified Party’s claim for indemnification; provided,
however, that any failure to give such notice will not waive any rights of the Indemnified
Party except to the extent the rights of the Indemnifying Party are actually prejudiced or to the
extent that any applicable period set forth in Section 9.1(a) has expired without such
notice being given. The Indemnifying Party shall have the right, upon notice to the Indemnified
Party within fifteen (15) days after the Indemnified Party has given notice to the Indemnifying
Party of such third party claim, to defend, manage and conduct any proceedings, negotiations or
communications involving such third party claim. In the event that the Indemnifying Party fails to
assume the defense of any third party claim within such fifteen (15) day period, the Indemnified
Party will have the right to undertake the defense of such third party claim at the expense and for
the account of the Indemnifying Party. Upon request of the Indemnifying Party, the Indemnified
Party shall, to the extent it may legally do so and to the extent that it is compensated in advance
by the Indemnifying Party for any costs and expenses thereby incurred,

(i) take such action as the Indemnifying Party may reasonably request in connection with such
action,

(ii) allow the Indemnifying Party to dispute such action in the name of the Indemnified Party
and to conduct a defense to such action on behalf of the Indemnified Party, and

(iii) render to the Indemnifying Party all such assistance (including providing reasonable
access to records and documents) as the Indemnifying Party may reasonably request in connection
with such dispute and defense.

(e) The amount of any indemnification obligations payable under this Agreement by an
Indemnifying Party will be computed net of any insurance proceeds with respect to the matter for
which such indemnification relates. Each Indemnified Party must take and must cause their
respective affiliates to take all reasonable steps to mitigate and otherwise minimize the
indemnification obligations to the maximum extent reasonably possible upon and after becoming aware
of any event which would reasonably be expected to give rise to any indemnification obligations,
including without limitation using reasonable efforts to collect available insurance proceeds and
to pursue recoveries against third parties. In addition, Parent must cause the Surviving
Corporation to maintain, following the Closing, insurance coverages appropriate to the Surviving
Corporation’s business activities

(f) In determining the indemnification obligation payable under this Agreement (including
under Section 7.3 and Section 8.2) by an Indemnifying Party, the amount of Damages
and Losses incurred by an Indemnified Party shall be (i) increased to take into account any
additional Tax cost incurred by the Indemnified Party arising from the receipt of indemnification
payments hereunder (“Tax Costs”) and (ii) decreased to take into account any deduction,
credit or other Tax benefit actually realized by the Indemnified Party with respect to such Damages
and Losses (“Tax Benefits”). In computing the amount of any such Tax Cost or Tax Benefit,
the Indemnified Party shall be deemed to recognize all other items of income, gain, loss, deduction
or credit before recognizing any item arising from the receipt of any indemnification payment
hereunder or the incurrence or payment of any indemnified Damages or Losses.

 

38

 

(g) NOTWITHSTANDING ANY PROVISION TO THE CONTRARY HEREIN, NO INDEMNIFIED PARTY WILL BE
ENTITLED TO RECOVER ANY CONSEQUENTIAL, SPECIAL, EXEMPLARY OR PUNITIVE DAMAGES IN CONNECTION WITH
ANY CLAIM ASSERTED UNDER THIS AGREEMENT EXCEPT TO THE EXTENT THAT SUCH DAMAGES HAVE BEEN PAID OR
ARE PAYABLE BY AN INDEMNIFIED PARTY TO A PERSON WHO IS NOT AN INDEMNIFIED PARTY HEREUNDER.

Section 9.2. [Intentionally Omitted].

Section 9.3. Brokers. Regardless of whether the Closing shall occur, (i) the Owners
shall (in accordance with each Owner’s Proportionate Share) indemnify and hold harmless Parent from
and against any and all liability for any brokers or finders’ fees arising with respect to brokers
or finders retained or engaged by the Company or any Owner or their respective Affiliates in
respect of the transactions contemplated by this Agreement, and (ii) Parent shall indemnify and
hold harmless the Company and the Owners from and against any and all liability for any brokers’ or
finders’ fees arising with respect to brokers or finders retained or engaged by Parent or its
Affiliates in respect of the transactions contemplated by this Agreement.

Section 9.4. Costs and Expenses. Each of the parties to this Agreement shall bear
his, her or its own expenses incurred in connection with the negotiation, preparation, execution
and closing of this Agreement and the transactions contemplated hereby including financial
advisors’, attorneys’, brokers’ and other professional fees and expenses (the “Transaction
Expenses”); provided, however, (a) that the Owners shall be responsible for and
shall discharge all Transaction Expenses (in accordance with each Owner’s Proportionate Share)
incurred by or on behalf of the Company prior to the Closing, and (b) each Owner shall be
responsible for and shall discharge all Transaction Expenses incurred by or on behalf of such Owner
prior to the Closing (it being the parties’ agreement that the Company shall not bear or otherwise
be liable for any such expenses).

Section 9.5. Notices. Any notice, request, instruction, correspondence or other
document to be given hereunder by any party hereto to another (herein collectively called “Notice”)
shall be in writing and delivered personally or mailed by registered or certified mail, postage
prepaid and return receipt requested, by facsimile or e-mail or by Federal Express, UPS, or other
reputable overnight courier as follows:

	 	 	 
	IF TO BUYER:

	 	Roadrunner Transportation Systems, Inc.

4900 S. Pennsylvania Avenue

Cudahy, WI 53110-8903

Attn.: Peter Armbruster

Fax: (414) 486-0092

Email: parmruster@rrts.com
	 
	 	 
	 

	 	With copies to:
	 
	 	 
	 

	 	HCI Equity Partners

IDS Center

80 South 8th Street, Suite 4508

Minneapolis, MN 55402

Attn.: Judy Vijums

Fax: (612) 332-2012

Email: jvijums@hciequity.com
	 
	 	 
	 

	 	and
	 
	 	 
	 

	 	Greenberg Traurig, LLP

2375 East Camelback Road, Suite 700

Phoenix, AZ 85016

Attn.: Brandon Lombardi

Fax: (602) 445-8679

Email: lombardib@gtlaw.com

 

39

 

	 	 	 
	IF TO THE COMPANY (PRIOR TO
THE CLOSING), ANY OF THE
OWNERS OR THE OWNERS’
REPRESENTATIVE:

	 	Mason Wells Buyout Fund II, Limited
Partnership, 
Owners’ Representative

411 E. Wisconsin Avenue, Suite 1280

Milwaukee, WI 53202

Attn.: Kevin P. Kenealey

Fax: (414) 727-6410

Email: kkenealey@masonwells.com
	 
	 	 
	 

	 	Mark R. Holden

315 East 650 North

West Lafayette, IN 47906

Fax: (765) 337-6582

Email: holdenmark59@aol.com
	 
	 	 
	 

	 	Jerry R. Linzey

5062 Shooting Star Lane

West Lafayette, IN 47906

Fax: (765) 586-1342

Email: jerrylinzey@yahoo.com
	 
	 	 
	 

	 	Anthony W. Lenhart

13328 Ridgemoor Drive

Prospect, KY 40059

Fax: (502) 777-8369

Email: tonylen@yahoo.com
	 
	 	 
	 

	 	Richard A. Mitchell, Jr.

16821 Mallet Hill Drive

Louisville, KY 40245

Fax: (502) 777-2399

Email: finstrat@msn.com
	 
	 	 
	 

	 	With a copy to:
	 
	 	 
	 

	 	Baker & Daniels LLP

600 E. 96th Street, Suite 600

Indianapolis, IN 43240

Attn.: Trevor Belden

Fax: (317) 569-4800

Email: trevor.belden@bakerd.com

Notice given by facsimile or e-mail shall be effective upon actual receipt if received during the
recipient’s normal business hours, or at the beginning of the recipient’s next normal Business Day
after receipt if not received during the recipient’s normal business hours. All Notices by
facsimile or email shall be confirmed by the sender thereof promptly after transmission in writing
by registered or certified mail, personal delivery, Federal Express, UPS or other reputable
overnight courier.

 

40

 

Section 9.6. Dispute Resolution; Waiver of Jury Trial. Subject to Section 2.5
hereof, if the parties should have a dispute arising out of or relating to this Agreement or the
parties’ respective rights and duties hereunder, then the parties will resolve such dispute in the
following manner:

(a) Any party may at any time deliver to the others a written dispute notice setting forth a
brief description of the issue(s) for which such notice initiates the dispute resolution mechanism
contemplated by this Section 9.6.

(b) During the thirty (30)-day period following the delivery of the notice described in
Section 9.6(a) above, appropriate representatives of the parties will meet and seek to
resolve the disputed issue(s) through negotiation.

(c) If such representatives of the parties are unable to resolve the disputed issue(s) through
negotiation, then after the period described in Section 9.6(b) above, the parties (or
either of them) will refer the issue (to the exclusion of a court of law) to final and binding
arbitration in Milwaukee, Wisconsin in accordance with the then existing Commercial Arbitration
Rules (the “Rules”) of the AAA, and judgment upon the award rendered by the arbitrators may
be entered in any court having jurisdiction thereof; provided, however, that the law applicable to
any controversy shall be as set forth in Section 9.17 hereof. In any arbitration pursuant
to this Agreement, the award or decision shall be rendered by a panel of three arbitrators (unless
Parent and Owners’ Representative mutually agree to a single arbitrator, in which case there shall
be a single arbitrator) who shall be appointed by mutual agreement of Parent and Owners’
Representative. In the event of the failure of Parent and Owners’ Representative to agree within
forty-five (45) days after the commencement of the arbitration proceeding upon the appointment of
panel of arbitrators (three or one), the panel shall be appointed in accordance with the Rules.
Upon the completion of the selection of the panel, an award or decision shall be rendered as soon
as practicable. The arbitrators’ award or decision shall be in writing and shall state the
reasoning on which the award or decision rests.

(d) Except for the disputes to be addressed by Section 2.6(c), the procedures
specified in this Section shall be the sole and exclusive procedures for the resolutions of
disputes between the parties arising out of or relating to this Agreement; provided, however, that
either party may seek preliminary or permanent injunctive relief, whether prohibitive or mandatory,
and such request shall not be subject to arbitration and may be adjudicated only by the U.S.
District Court for the State of Wisconsin.

(e) EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT IT
MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING
HEREUNDER.

Section 9.7. Representations and Warranties. Each of the representations and
warranties of the Company and Parent shall be deemed to have been made, and the certificate
delivered pursuant to subsections (a)(iv) and (b)(ii) of Section 2.8 shall be deemed to
constitute the making of such representations and warranties, again at and as of the Closing by and
on behalf of the Company and Parent.

Section 9.8. Entire Agreement; Amendments and Waivers. This Agreement, together with
all exhibits and schedules attached hereto, constitutes the entire agreement between and among the
parties hereto pertaining to the subject matter hereof and supersedes all prior agreements,
understandings, negotiations and discussions, whether oral or written, of the parties, and there
are no warranties, representations or other agreements between the parties in connection with the
subject matter hereof except as set forth specifically herein or contemplated hereby. Subject to
Section 10.2(c), no supplement, modification or waiver of this Agreement shall be binding
unless executed in writing by the party to be bound thereby. No waiver of any of the provisions of
this Agreement shall be deemed or shall constitute a waiver of any other provision hereof
(regardless of whether similar), nor shall any such waiver constitute a continuing waiver unless
otherwise expressly provided.

 

41

 

Section 9.9. Binding Effect and Assignment. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective permitted heirs, beneficiaries,
executors, personal representatives, successors and assigns; but neither this Agreement nor any of
the rights, benefits or obligations hereunder shall be assigned, by operation of law or otherwise,
by any party hereto without the prior written consent of the other parties, provided, however, that
nothing herein shall prohibit the assignment of Parent’s rights (but not obligations) to any
lender. Nothing in this Agreement, express or implied, is intended to confer upon any person or
entity other than the parties hereto and their respective permitted successors and assigns, any
rights, benefits or obligations hereunder.

Section 9.10. Remedies. Except as otherwise provided in Section 7.3(c), the
rights and remedies provided by this Agreement are cumulative, and the use of any one right or
remedy by any party hereto shall not preclude or constitute a waiver of its right to use any or all
other remedies. Except as otherwise provided in this Agreement, such rights and remedies are given
in addition to any other rights and remedies a party may have by law, statute or otherwise.

Section 9.11. Exhibits and Schedules. The exhibits and Schedules referred to herein
are attached hereto and incorporated herein by this reference. Disclosure of a specific item in
any one Schedule shall be deemed restricted only to the Section of this Agreement to which such
disclosure specifically relates except where (i) there is an explicit cross-reference to another
Schedule, and (ii) Parent could reasonably be expected to ascertain the scope of the modification
to a representation intended by such cross-reference.

Section 9.12. Multiple Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

Section 9.13. References and Construction.

(a) Whenever required by the context, the singular number shall include the plural and
pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter,
singular or plural, as the identification the Person may require. References to monetary amounts,
specific named statutes and GAAP are intended to be and shall be construed as references to United
States dollars, statutes of the United States of the stated name and United States GAAP,
respectively, unless the context otherwise requires.

(b) The provisions of this Agreement shall be construed according to their fair meaning and
neither for nor against any party hereto irrespective of which party caused such provisions to be
drafted, and no rule of strict construction shall be applied against any party. Each of the
Owners, the Company, and Parent acknowledge that he or it has been represented by an attorney in
connection with the preparation and execution of this Agreement.

Section 9.14. Survival. Any provision of this Agreement which contemplates
performance or the existence of obligations after the Closing Date, and any and all representations
and warranties set forth in this Agreement, shall not be deemed to be merged into or waived by the
execution and delivery of the instruments executed at the Closing, but shall expressly survive
Closing and shall be binding upon the party or parties obligated thereby in accordance with the
terms of this Agreement, subject to any limitations expressly set forth in this Agreement.

Section 9.15. Attorneys’ Fees. In the event any suit or other legal proceeding is
brought for the enforcement of any of the provisions of this Agreement, the parties hereto agree
that the prevailing party or parties shall be entitled to recover from the other party or parties,
as determined by the court or arbitrators upon final judgment on the merits reasonable attorneys’
fees (and sales taxes thereon, if any), including attorneys’ fees for any appeal, and costs
incurred in bringing such suit or proceeding.

Section 9.16. Risk of Loss. Prior to the Closing, the risk of loss of damage to, or
destruction of, any and all of the Company’s Properties shall remain with the Company, and the
legal doctrine known as the “Doctrine of Equitable Conversion” shall not be applicable to this
Agreement or to any of the transactions contemplated hereby.

 

42

 

Section 9.17. Choice of Law; Venue. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO ANY CHOICE
OF LAW OR CONFLICTING PROVISION OR RULE THAT WOULD CAUSE THE LAWS OF ANY JURISDICTION OTHER THAN
THE STATE OF DELAWARE TO BE APPLIED.

Section 9.18. Conflicts and Privilege. Parent acknowledges that Baker & Daniels LLP
(“B&D”) and Quarles and Brady LLP (“Q&B”) each represents the interests of the Owners in the
transactions contemplated by this Agreement. Parent hereby agrees that, in the event a dispute
arises after the Closing between Parent and the Owners, B&D and Q&B may represent the Owners in
such dispute even though the interests of the Owners may be directly adverse to Parent, the Company
and the Subsidiary, and even though B&D and Q&B may have represented the Company or the Subsidiary
in a matter substantially related to such dispute, or may be handling ongoing matters for Parent,
the Company or the Subsidiary. Parent further agrees that, as to all communications between B&D or
Q&B on the one hand, and the Company, the Subsidiary and the Owners, on the other hand, that relate
in any way to the transaction contemplated by this Agreement, the attorney-client privilege and the
expectation of client confidence belongs to the Owners and may be controlled by the Owners, and
shall not pass to or be claimed or controlled by Parent, the Company or the Subsidiary.
Notwithstanding the foregoing, in the event a dispute arises between the Parent, the Company, the
Subsidiary and a party other than a party to this Agreement after the Closing, the Company and the
Subsidiary may assert the attorney-client privilege to prevent disclosure of confidential
communications by B&D or Q&B to such third party.

ARTICLE X

OWNERS’ REPRESENTATIVE

Section 10.1. Appointment of Owners’ Representatives. Each of the Owners hereby
irrevocably constitutes and appoints the Owners’ Representative to represent him or it in
connection with this Agreement as set forth in this Article X. This power is irrevocable and
coupled with an interest, and shall not be affected by the death, incapacity, illness, dissolution
or other inability to act of any of the Owners.

Section 10.2. Authority. Each of the Owners hereby irrevocably grants the Owners’
Representative full power and authority:

(a) to execute and deliver, on behalf of such Owner, and to accept delivery of, on behalf of
such Owner, such documents as may be deemed by the Owners’ Representative, in its sole discretion,
to be appropriate to consummate the transactions contemplated by this Agreement;

(b) to (i) dispute or refrain from disputing, on behalf of such Owner, any claim made by
Merger Sub and/or Parent or any other Person under this Agreement; (ii) negotiate and compromise,
on behalf of such Owner, any dispute that may arise under, and to exercise or refrain from
exercising any remedies available under, this Agreement; and (iii) execute, on behalf of such
Owner, any settlement agreement, release or other document with respect to such dispute or remedy;

(c) to (i) waive, on behalf of such Owner, any closing condition contained in Article
VI of this Agreement, (ii) agree to, on behalf of such Owner, any amendments of this Agreement
deemed by the Owners’ Representative, in its sole discretion, to be necessary or appropriate under
this Agreement, and (iii) execute, on behalf of such Owner, any documents that may be necessary or
appropriate in connection therewith;

(d) to enforce, on behalf of such Owner, any claim against Merger Sub and Parent arising under
this Agreement;

(e) to engage attorneys, accountants and agents at the expense of such Owner; and

 

43

 

(f) to give such instructions and to take such action or refrain from taking such action, on
behalf of such Owner, as the Owners’ Representative deems, in its sole discretion, necessary or
appropriate to carry out the provisions of this Agreement.

Section 10.3. Reliance. Each Owner hereby agrees that:

(a) in all matters in which action by the Owners’ Representative is required or permitted, the
Owners’ Representative is authorized to act on behalf of such Owner, notwithstanding any dispute or
disagreement among any of the Owners or between any Owner and the Owners’ Representative, and
Merger Sub and Parent shall be entitled to rely on any and all action taken by the Owners’
Representative under this Agreement without any liability to, or obligation to inquire of, any of
the Owners, notwithstanding any knowledge on the part of Merger Sub or Parent of any such dispute
or disagreement;

(b) the power and authority of the Owners’ Representative, as described in this Agreement,
shall continue in force until all rights and obligations of the Owners under this Agreement shall
have terminated, expired or been fully performed; and

(c) a decision, act, consent or instruction of the Owners’ Representative shall constitute a
decision, act, consent or instruction from all of the Owners and shall be final, binding and
conclusive upon each of the Owners. Parent may rely upon any such decision, act, consent or
instruction of the Owners’ Representative as being the decision, act, consent or instruction of
every such Owner. Parent is hereby relieved from any liability to any Persons for any acts done by
it in accordance with such decision, act, consent or instruction of the Owners’ Representative. In
furtherance of the foregoing, any reference to a power of the Owners under this Agreement, to be
exercised or otherwise taken, shall be a power vested in the Owners’ Representative.

Section 10.4. Resignation and Removal. The Owners’ Representative may resign from its
capacity as Owners’ Representative at any time by written notice delivered to Parent and the
Owners. A majority in interest of the Owners (based upon each Owner’s Proportionate Share) shall
have the right to remove the Owner’s Representative, with or without cause, upon written notice
delivered to the Owners’ Representative and Parent. If there is a vacancy at any time in the
position of the Owners’ Representative for any reason, such vacancy shall be filled by a majority
in interest of the Owners (based upon each Owner’s Proportionate Share).

Section 10.5. No Liability. The Owners’ Representative shall not be liable to
Parent, the Company, the Subsidiary or the Owners in its capacity as Owners’ Representative for any
error of judgment, or any act done or step taken or omitted by it in good faith or for any mistake
in fact or law, or for anything which it may do or refrain from doing in connection with this
Agreement, except for its own bad faith or willful misconduct. The Owners’ Representative may seek
the advice of legal counsel in the event of any dispute or question as to the construction of any
of the provisions of this Agreement or its duties hereunder, and it shall incur no liability in its
capacity as Owners’ Representative and shall be fully protected with respect to any action taken,
omitted or suffered by it in good faith in accordance with the opinion of such counsel.

Section 10.6. Expenses. Each Owner shall reimburse the Owners’ Representative for
such Owner’s Proportionate Share of any reasonable, third-party expenses incurred by the Owners’
Representative in connection with the performance of its duties under this Agreement. The Owners’
Representative may from time to time submit invoices to the Owners covering such expenses and, upon
the request of any Owner, shall provide such Owner with an accounting of all expenses paid. The
Owners’ Representative shall notify the Owners with respect to any reimbursable expense expected to
exceed $50,000.

 

44

 

ARTICLE XI

DEFINITIONS

Capitalized terms used in this Agreement are used as defined in this Article X or
elsewhere in this Agreement.

Section 11.1. Affiliate. The term “Affiliate” shall mean, with respect to any Person,
any other Person directly or indirectly controlling, controlled by or under common control with
such Person. For purposes of this definition, the term “control” (including the terms
“controlling,” “controlled by” and “under common control with”) means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a
Person, whether through the ownership of voting securities, by contract or otherwise, and such
“control” will be presumed if the first Person owns five percent (5%) or more of the voting capital
stock or other ownership interests, directly or indirectly, of such other Person.

Section 11.2. Affiliated Group. The term “Affiliated Group” shall mean any affiliated
group within the meaning of Section 1504(a) of the Code or any similar group defined under a
similar provision of state, local or foreign law.

Section 11.3. Available Cash. The term “Available Cash” shall mean all cash and cash
equivalents (including marketable securities and short-term investments) held by the Company or the
Subsidiary as of 11:59 p.m. on the Closing Date less the amount of cash and cash equivalents
necessary to cover outstanding checks which have been mailed or otherwise delivered by the Company
or the Subsidiary prior to such time but have not cleared.

Section 11.4. Benefit Program or Agreement. The term “Benefit Program or Agreement”
shall mean each personnel policy, employee manual or other written statements of rules or policies
concerning employment, equity compensation plan, collective bargaining agreement, bonus plan or
arrangement, incentive award plan or arrangement, vacation and sick leave policy, severance pay
policy or agreement, deferred compensation agreement or arrangement, consulting agreement or
employment contract.

Section 11.5. Bonus Plans. The term “Bonus Plans” shall mean the Company’s Senior
Management Value Creation Bonus Plan and the payments described in Schedule 11.5 hereto.

Section 11.6. Business Day. “Business Day” means any day other than a Saturday, a
Sunday or a day on which banking institutions in Milwaukee, Wisconsin are authorized by law,
regulation or executive order to remain closed.

Section 11.7. Class A Common Stock. The term “Class A Common Stock” means the
Company’s Class A common stock, par value $0.00001 per share.

Section 11.8. Class B Common Stock. The term “Class B Common Stock” means the
Company’s Class B common stock, par value $0.00001 per share.

Section 11.9. Code. The term “Code” shall mean the Internal Revenue Code of 1986, as
amended.

Section 11.10. Company Capital Stock. The term “Company Capital Stock” shall mean all
common stock and preferred stock of the Company.

Section 11.11. Company Common Stock. The term “Company Common Stock” shall mean all
Class A Common Stock and Class B Common Stock.

Section 11.12. Competing Business. The term “Competing Business” shall mean the
business of (i) multi-vendor Less-Than-Truckload consolidation, or (ii) warehousing solutions
involving the management of transportation for consumer goods companies supplying retailers.

 

45

 

Section 11.13. Confidential Information. The term “Confidential Information” shall
mean confidential data and confidential information (whether or not specifically labeled or
identified as “confidential”), in any form or medium, relating to the business, or services of the
Company or the Subsidiary (which does not rise to the status of a Trade Secret under applicable
law) which is or has been disclosed to the Owners or of which the Owners became aware as a
consequence of or through his or its employment with or ownership of the Company and which has
value to the Company and is not generally known to the competitors of the Company. Confidential
Information includes, but is not limited to, the following: (i) internal business information
(including information relating to strategic and staffing plans and practices, business, training,
marketing, promotional and sales plans and practices, cost, rate and pricing structures and
accounting and business methods), (ii) specific contractual arrangements with, and confidential
information about, the customers, independent contractors or other business relations of the
Company or the Subsidiary, (iii) know-how, compilations of data and analyses, techniques, systems,
research, records, reports, manuals, documentation, data and data bases relating thereto and
(iv) inventions, innovations, improvements, developments, methods, designs, analyses, drawings,
reports and all similar or related information (whether or not patentable). Notwithstanding the
foregoing, Confidential Information shall not include any data or information that (i) has been
voluntarily disclosed to the general public by the Company or its Affiliates, (ii) has been
independently developed and disclosed to the general public by others, or (iii) otherwise enters
the public domain through lawful means.

Section 11.14. Contracts. The term “Contracts,” when described as being those of or
applicable to any Person, shall mean any and all contracts, agreements, commitments, franchises,
understandings, arrangements, leases, licenses, registrations, easements, servitudes, rights of
way, mortgages, bonds, notes, guaranties, liens, indebtedness, approvals or other instruments or
undertakings to which such Person is a party or to which or by which such Person or the property of
such Person is subject or bound, excluding any Permits.

Section 11.15. Damages. The term “Damages” shall mean any and all damages,
liabilities, obligations, penalties, fines, judgments, claims, deficiencies, Losses, costs, wages,
liquidated damages, expenses and assessments (including without limitation income and other taxes,
interest, penalties and accountants’ fees and disbursements).

Section 11.16. Equity Holder. The term “Equity Holder” shall mean any Owner or Option
Holder.

Section 11.17. Exchange Ratio. The term “Exchange Ratio” shall mean the quotient
(rounded to the nearest one thousandth) obtained by dividing the Per Share Merger Consideration by
the Parent Common Stock Market Price.

Section 11.18. Funded Indebtedness. The term “Funded Indebtedness” shall mean the
aggregate amount (including the current portions thereof) of all (i) notes payable, indebtedness
for money borrowed from others, and dividend distributions payable to any Owner (other than
dividends payable on Series A Preferred Stock pursuant to Section 1.9(b)); (ii) without
duplication, indebtedness of the type described in clause (i) above guaranteed, directly or
indirectly, in any manner by the Company or the Subsidiary, or in effect guaranteed, directly or
indirectly, in any manner by the Company or the Subsidiary, through an agreement, contingent or
otherwise, to supply funds to, or in any other manner invest in, the debtor, or to purchase
indebtedness, or to purchase and pay for property if not delivered or to pay for services if not
performed, primarily for the purpose of enabling the debtor to make payment of the indebtedness or
to assure the owners of the indebtedness against loss, but excluding endorsements of checks and
other instruments in the ordinary course; (iii) without duplication, indebtedness of the type
described in clause (i) above secured by any Lien upon property owned by the Company or the
Subsidiary, even though the Company or the Subsidiary has not in any manner become liable for the
payment of such indebtedness; and (iv) interest expense accrued but unpaid, and all prepayment
premiums, on or relating to any of such indebtedness.

Section 11.19. GAAP. The term “GAAP” shall mean U.S. generally accepted accounting
principles.

 

46

 

Section 11.20. Governmental Authorities. The term “Governmental Authorities” shall
mean any nation or country (including but not limited to the United States) and any state,
commonwealth, territory or possession thereof and any political subdivision of any of the
foregoing, including but not limited to courts, departments, commissions, boards, bureaus,
agencies, ministries or other instrumentalities.

Section 11.21. Greenfield Competing Business. The term “Greenfield Competing
Business” shall mean any Person that begins to engage in any Competing Business in the Territory
after the Closing Date as a “start-up” business with no prior operating history prior to starting
such Competing Business.

Section 11.22. Hazardous Material. The term “Hazardous Material” shall mean all or any of the following: (a) substances that
are defined or listed in, or otherwise classified pursuant to, any applicable laws or regulations
as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic substances” or any
other formulation intended to define, list or classify substances by reason of deleterious
properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity or
“EP toxicity;” (b) oil, petroleum or petroleum derived substances, natural gas, natural gas liquids
or synthetic gas and drilling fluids, produced waters and other wastes associated with the
exploration, development or production of crude oil, natural gas or geothermal resources; (c) any
flammable substances or explosives or any radioactive materials; and (d) asbestos in any form or
electrical equipment which contains any oil or dielectric fluid containing levels of
polychlorinated biphenyls in excess of fifty parts per million.

Section 11.23. Knowledge of the Company. The term “Knowledge of the Company” shall
mean the actual knowledge of any of the Management Owners, after reasonably inquiry, with respect
to the matter in question. Any such Management Owner will be deemed to have knowledge of a
particular matter if a reasonable person who has the duties and responsibilities of such Management
Owner in the customary performance of such duties and responsibilities reasonably should have known
such matter.

Section 11.24. Legal Requirements. The term “Legal Requirements,” when described as
being applicable to any Person, shall mean any and all laws (statutory, judicial, tax, or
otherwise), ordinances, regulations, judgments, orders, directives, injunctions, writs, decrees or
awards of, and any Contracts with, any Governmental Authority, in each case as and to the extent
applicable to such person or such person’s business, operations or properties.

Section 11.25. Management Owners. The term “Management Owners” shall mean,
collectively, Mark R. Holden, Jerry R. Linzey, Anthony W. Lenhart and Richard R. Mitchell, Jr.

Section 11.26. Material Adverse Effect. The term “Material Adverse Effect” shall mean
a material adverse effect upon: (a) the businesses, operations, financial condition or results of
operations of the Company and the Subsidiary, taken as a whole; or (b) the ability of the Company
and the Owners to perform their material obligations under the Agreement; provided that the term
Material Adverse Effect shall not include any effect attributable to (i) a change (after the date
hereof) in or the enactment of any Legal Requirement or any change in the interpretation thereof;
(ii) any change or event relating to the general economy of any nation or region in which the
Company and the Subsidiary operate; (iii) any change or event generally relating to the industries
in which the Company and the Subsidiary operate or their businesses as a whole; (iv) compliance by
any party hereto with the terms of, or taking any action contemplated by, this Agreement or any
agreement or document executed in connection herewith; (v) the identity of Parent or Parent’s plans
for the customers, suppliers, employees, businesses, operations or assets of the Company and the
Subsidiary; or (vi) the announcement of the transactions contemplated by this Agreement.

Section 11.27. Non-Management Owner. The term “Non-Management Owners” shall mean
Mason Wells Buyout Fund II, Limited Partnership and MW Buyout Executive Fund II, LLC.

Section 11.28. Option. The term “Option” shall mean any option to purchase shares of
Company Capital Stock issued under the Option Plan or other compensation plan or arrangement of the
Company.

 

47

 

Section 11.29. Option Plan. The term “Option Plan” shall mean the Company’s 2009
Employee Stock Option Plan.

Section 11.30. Parent Common Stock. The term “Parent Common Stock” shall mean the
common stock, par value $0.01 per share, of Roadrunner Transportation Systems, Inc.

Section 11.31. Parent Common Stock Market Price. The term “Parent Common Stock Market
Price” shall mean the average closing sales price of Parent Common Stock as reported in The Wall
Street Journal during the twenty (20) trading days preceding the Closing Date.

Section 11.32. Permits. The term “Permits” shall mean any and all permits, rights,
approvals, licenses, authorizations or orders under any Legal Requirement or otherwise granted by
any Governmental Authority.

Section 11.33. Permitted Liens. The term “Permitted Liens” shall mean (a) Liens for
Taxes, assessments or government charges or levies not yet delinquent; (b) statutory and
contractual Liens granted by the Company or the Subsidiary to any landlord, lessor or licensor; (c)
Liens incurred in connection with worker’s compensation, unemployment compensation, and other types
of social security or in connection with surety bonds, bids, performance bonds and similar
obligations for sums not overdue or being contested in good faith, and (d) Liens that constitute
purchase money security interests.

Section 11.34. Person. The term “Person” shall mean an individual, corporation,
limited liability company, general or limited partnership, association, joint stock company, trust,
joint venture, unincorporated organization or a governmental entity (or any department, agency or
political subdivision thereof).

Section 11.35. Properties. The term “Properties” shall mean any and all properties
and assets (real, personal or mixed, tangible or intangible) owned or Used by the Company.

Section 11.36. Proportionate Share. The term “Proportionate Share” shall mean, as to
each Owner, the percentage set forth opposite such Seller’s name in Schedule 11.36 hereto.

Section 11.37. Regulations. The term “Regulations” shall mean any and all regulations
promulgated by the Department of the Treasury pursuant to the Code.

Section 11.38. Series A Preferred Stock. The term “Series A Preferred Stock” means
the Company’s Series A preferred stock, par value $0.00001 per share.

Section 11.39. Subsidiary. The term “Subsidiary” shall mean Prime Distribution
Services, Inc., an Indiana corporation.

Section 11.40. Tax. The term “Tax” shall mean (i) any federal, state, local, or
foreign income, gross receipts, license, payroll, employment, excise, severance, stamp, occupation,
premium, windfall profits, environmental (including taxes under Section 59A of the Code), custom
duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment,
disability, real property, personal property, sales, use, transfer, registration, value added,
alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any
interest, penalty, or addition thereto, whether disputed or not, and any amounts payable pursuant
to the determination or settlement of an audit, and (ii) liability of the Company for the payment
of any amounts of the type described in clause (i) above as a result of any express or implied
obligation to indemnify or otherwise assume or succeed to the liability of any other Person.

Section 11.41. Tax Return. The term “Tax Return” shall mean any return, declaration,
report, claim for refund, or information return or statement relating to Taxes, including any
schedule or attachment thereto, and including any amendment thereof.

 

48

 

Section 11.42. Trade Secrets. The term “Trade Secrets” shall mean information of the
Company including, but not limited to, technical or nontechnical data, formulas, patterns,
compilations, programs, financial data, financial plans, product or service plans or lists of
actual or potential customers or suppliers which each Owner acknowledges and agrees is economically
valuable and which (i) derives economic value, actual or potential, from not being generally known
to, and not being readily ascertainable by proper means by, other persons who can obtain economic
value from its disclosure or use, and (ii) is the subject of efforts that are reasonable under the
circumstances to maintain its secrecy.

Section 11.43. Unpaid Company Expenses. The term “Unpaid Company Expenses” means
(a) amounts payable under the Bonus Plans, and (b) the Transaction Expenses, but, in each case,
only to the extent they have not been paid by the Company in cash prior to the close of business on
the Business Day immediately prior to the Closing Date.

Section 11.44. Used. The term “Use” or Used” shall mean, with respect to the
Properties, Contracts or Permits of the Company, those owned, leased, licensed or otherwise held by
the Company which were acquired for use or held for use by the Company in connection with the
Company’s business and operations, whether or not reflected on the Company’s books of account.

Section 11.45. Vested Option. The term “Vested Option” shall mean each Option that
(i) is outstanding and vested immediately prior to the Effective Time or that shall vest in
accordance with its terms at the Effective Time, and (ii) has a per share exercise price less than
the Per Share Merger Consideration.

Section 11.46. Working Capital. The term “Working Capital” shall mean the remainder,
if any, of (a) total current assets excluding (i) cash and cash equivalents and (ii) income tax
assets, minus (b) total current liabilities excluding (i) Unpaid Company Expenses, (ii) current
liabilities related to any Funded Debt paid at Closing and (iii) income tax liabilities, in each
case, calculated in accordance with GAAP and presented in a manner consistent in all material
respects (including the principles, practices and methods of accounting) with the preparation of
the Company’s audited December 31, 2010, balance sheet. Solely for the purpose of demonstrating
the methodology for calculating Working Capital, Schedule 11.46 sets forth an example of
the calculation of the Working Capital of the Company as of December 31, 2010, based upon the
balance sheet set forth in the Company’s audited Financial Statements.

 

49

 

EXECUTED as of the date first written above.

	 	 	 	 	 	 	 
	 	 	BUYER:	 	 
	 
	 	 	 	 	 	 
	 	 	ROADRUNNER TRANSPORTATION SERVICES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Armbruster
 

Name: Peter Armbruster
	 	 
	 

	 	 	 	Title: Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	MERGER SUB:	 	 
	 
	 	 	 	 	 	 
	 	 	PRIME ACQUISITION CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Peter Armbruster
 

Name: Peter Armbruster
	 	 
	 

	 	 	 	Title: Vice President and Chief Financial Officer	 	 

[Signature Page to Agreement and Plan of Merger]

 

 

	 	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	PRIME LOGISTICS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Mark R. Holden
 

Name: Mark R. Holden
	 	 
	 

	 	 	 	Title: President and Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	OWNERS:	 	 
	 
	 	 	 	 	 	 
	 	 	MASON WELLS BUYOUT FUND II, LIMITED PARTNERSHIP	 	 
	 
	 	 	 	 	 	 
	 	 	By: MASON WELLS BUYOUT PARTNERS II, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Kevin P. Kenealey
 

Name: Kevin P. Kenealey
	 	 
	 

	 	 	 	Title: Member	 	 
	 
	 	 	 	 	 	 
	 	 	MW BUYOUT EXECUTIVE FUND II LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John T. Byrnes
 

Name: John T. Byrnes
	 	 
	 

	 	 	 	Title: Managing Member	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Mark R. Holden	 	 
	 	 	 	 	 
	 	 	MARK R. HOLDEN, individually	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Jerry R. Linzey	 	 
	 	 	 	 	 
	 	 	JERRY R. LINZEY, individually	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Anthony W. Lenhart	 	 
	 	 	 	 	 
	 	 	ANTHONY W. LENHART, individually	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Richard A. Mitchell, Jr.	 	 
	 	 	 	 	 
	 	 	RICHARD A. MITCHELL, JR., individually	 	 

[Signature Page to Agreement and Plan of Merger]

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