Document:

exv4w5

EXHIBIT 4.5

 

GUARANTEE AGREEMENT

Dated as of December 10, 2009

By and Between

U.S. BANCORP,

as Guarantor

and

WILMINGTON TRUST COMPANY,

as Trustee

 

 

 

CROSS REFERENCE TABLE1

			
	Section of Trust	 	Section of
	Indenture Act of	 	Guarantee
	1939, as amended	 	Agreement
	310(a) 

310(b) 

310(c) 

311(a) 

311(b) 

311(c) 

312(a) 

312(b) 

312(c) 

313(a) 

313(b) 

313(c) 

313(d) 

314(a) 

314(b) 

314(c) 

314(d) 

314(e) 

314(f) 

315(a) 

315(b) 

315(c) 

315(d) 

316(a) 

316(b) 

316(c) 

317(a) 

317(b) 

318(a)
	 	4.1(a)

2.8; 4.1(c)

Inapplicable

2.2(b)

2.2(b)

Inapplicable

2.2(a); 2.9

2.2(b); 2.9

2.9

2.3

2.3

2.3

2.3

2.4

Inapplicable

2.5

Inapplicable

2.5

Inapplicable

3.1(d); 3.2(a)

2.7(a)

3.1(c)

3.1(d)

2.6; 5.4(a)

5.3

Inapplicable

2.10

Inapplicable

2.1(b)

 

			
	1	 	This Cross-Reference Table does not constitute
part of the Agreement and shall not have any bearing upon the interpretation of
any of its terms or provisions.

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Table of Contents

Page

	 	 	 	 	 
	ARTICLE 1 INTERPRETATION AND DEFINITIONS
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.1. Interpretation and Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 TRUST INDENTURE ACT
	 	 	5	 
	 
	 	 	 	 
	SECTION 2.1. Trust Indenture Act; Application
	 	 	5	 
	SECTION 2.2. Lists of Holders of Securities
	 	 	5	 
	SECTION 2.3. Reports by Guarantee Trustee
	 	 	5	 
	SECTION 2.4. Periodic Reports to Guarantee Trustee
	 	 	5	 
	SECTION 2.5. Evidence of Compliance with Conditions Precedent
	 	 	6	 
	SECTION 2.6. Guarantee Event of Default; Waiver
	 	 	6	 
	SECTION 2.7. Guarantee Event of Default; Notice
	 	 	6	 
	SECTION 2.8. Conflicting Interests
	 	 	6	 
	SECTION 2.9. Disclosure of Information
	 	 	6	 
	SECTION 2.10. Guarantee Trustee May File Proofs of Claim
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 3 POWERS, DUTIES AND RIGHTS OF GUARANTEE TRUSTEE
	 	 	7	 
	 
	 	 	 	 
	SECTION 3.1. Powers and Duties of Guarantee Trustee
	 	 	7	 
	SECTION 3.2. Certain Rights of Guarantee Trustee
	 	 	8	 
	 
	 	 	 	 
	ARTICLE 4 GUARANTEE TRUSTEE
	 	 	10	 
	 
	 	 	 	 
	SECTION 4.1. Guarantee Trustee; Eligibility
	 	 	10	 
	SECTION 4.2. Appointment, Removal and Resignation of Guarantee Trustee
	 	 	11	 
	 
	 	 	 	 
	ARTICLE 5 GUARANTEE
	 	 	12	 
	 
	 	 	 	 
	SECTION 5.1. Guarantee
	 	 	12	 
	SECTION 5.2. Waiver of Notice and Demand
	 	 	12	 
	SECTION 5.3. Obligations Not Affected
	 	 	12	 
	SECTION 5.4. Rights of Holders
	 	 	13	 
	SECTION 5.5. Guarantee of Payment
	 	 	13	 
	SECTION 5.6. Subrogation
	 	 	14	 
	SECTION 5.7. Independent Obligations
	 	 	14	 
	 
	 	 	 	 
	ARTICLE 6 LIMITATION OF TRANSACTIONS; SUBORDINATION
	 	 	14	 
	 
	 	 	 	 
	SECTION 6.1. Limitation of Transactions
	 	 	14	 
	SECTION 6.2. Ranking
	 	 	15	 
	SECTION 6.3. Subordination of Common Securities
	 	 	15	 

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	 	 	 	Page
	ARTICLE 7 TERMINATION
	 	 	15	 
	 
	 	 	 	 
	SECTION 7.1. Termination
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 8 INDEMNIFICATION
	 	 	15	 
	 
	 	 	 	 
	SECTION 8.1. Indemnification
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 9 MISCELLANEOUS
	 	 	16	 
	 
	 	 	 	 
	SECTION 9.1. Successors and Assigns
	 	 	16	 
	SECTION 9.2. Amendments
	 	 	16	 
	SECTION 9.3. Notices
	 	 	16	 
	SECTION 9.4. Benefit
	 	 	17	 
	SECTION 9.5. Governing Law
	 	 	17	 

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GUARANTEE AGREEMENT

          This GUARANTEE AGREEMENT (the “Guarantee”), dated as of December 10, 2009, is executed and
delivered by U.S. BANCORP, a Delaware corporation (the “Guarantor”), and WILMINGTON TRUST COMPANY,
a Delaware banking corporation, as trustee (the “Guarantee Trustee”), for the benefit of the
Holders (as defined herein) from time to time of the Securities (as defined herein) of USB CAPITAL
XIII, a Delaware statutory trust (the “Trust”).

RECITALS

          WHEREAS, pursuant to the Trust Agreement (as defined herein), the Trust may issue up to
$500,000,000 aggregate liquidation amount of capital securities, having a liquidation amount of
$1,000 per security and designated the “6.625% Trust Preferred Securities” of the Trust (the
“Capital Securities”) and $1,000,000 aggregate liquidation amount of common securities, having a
liquidation amount of $1,000 per security and designated the “6.625% Common Securities” of the
Trust (the “Common Securities” and, together with the Capital Securities, the “Securities”);

          WHEREAS, as incentive for the Holders to purchase the Securities, the Guarantor desires
irrevocably and unconditionally to agree, to the extent set forth in this Guarantee, to pay to the
Holders of the Securities the Guarantee Payments (as defined herein) and to make certain other
payments on the terms and conditions set forth herein; and

          WHEREAS, if a Trust Enforcement Event (as defined herein) has occurred and is continuing, the
rights of holders of the Common Securities to receive Guarantee Payments (as defined herein) under
this Guarantee are subordinated to the rights of Holders of Capital Securities to receive Guarantee
Payments under this Guarantee;

          NOW, THEREFORE, in consideration of the purchase by each Holder of Securities, which purchase
the Guarantor hereby agrees shall benefit the Guarantor, the Guarantor executes and delivers this
Guarantee for the benefit of the Holders.

ARTICLE
1

INTERPRETATION AND DEFINITIONS

     SECTION 1.1. Interpretation and Definitions. In this Guarantee, unless the context
otherwise requires:

     (a) capitalized terms used in this Guarantee but not defined in the preamble above have
the respective meanings assigned to them in this Section 1.1;

     (b) a term defined anywhere in this Guarantee has the same meaning throughout;

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     (c) all references to “the Guarantee” or “this Guarantee” are to this Guarantee as
modified, supplemented or amended from time to time;

     (d) all references in this Guarantee to Articles, Sections and Recitals are to
Articles, Sections and Recitals of this Guarantee, unless otherwise specified;

     (e) unless otherwise defined in this Guarantee, a term defined in the Trust Indenture
Act has the same meaning when used in this Guarantee;

     (f) a reference to the singular includes the plural and vice versa and a reference to
any masculine form of a term shall include the feminine form of a term, as applicable; and

     (g) the following terms have the following meanings:

          “Affiliate” has the same meaning as given to that term in Rule 405 of the Securities Act of
1933, as amended, or any successor rule thereunder.

          “Business Day” has the meaning specified in the Trust Agreement.

          “Capital Securities” has the meaning specified in the Recitals hereto.

          “Common Securities” has the meaning specified in the Recitals hereto.

          “Common Stock” means the common stock, par value $0.01 per share, of the Guarantor.

          “Corporate Trust Office” means the principal office of the Guarantee Trustee at which at any
particular time its corporate trust business shall be administered, which office at the date of
execution of this Guarantee is located at 1100 Market Street, Wilmington, Delaware 19890.

          “Debentures” means the series of 6.625% Junior Subordinated Debentures due 2039 designated the
“6.625% Junior Subordinated Debentures due 2039”, held by the Property Trustee as defined in the
Trust Agreement.

          “Deferral Period” has the meaning specified in the Indenture.

          “Global Security” means a fully registered, global Capital Security, as defined in the
Indenture, representing the Capital Securities.

          “Guarantee Event of Default” means a default by the Guarantor on any of its payment or other
obligations under this Guarantee.

          “Guarantee Payments” means the following payments or distributions, without duplication, with
respect to the Securities, to the extent not paid by or on behalf of the Trust: (i) any accumulated
and unpaid Distributions (as defined in the Trust Agreement) that are required to be paid on such
Securities to the extent the Trust has sufficient funds available

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therefor at the time, (ii) the redemption price, including all accumulated and unpaid Distributions to the
date of redemption, with respect to any Securities called for redemption by the Trust, to the
extent the Trust shall have sufficient funds available therefor at the time or (iii) upon a
voluntary or involuntary dissolution, winding-up or termination of the Trust (other than in
connection with the distribution of Debentures to the Holders in exchange for Securities as
provided in the Trust Agreement), the lesser of (a) the aggregate of the liquidation amount and all
accumulated and unpaid Distributions on the Securities to the date of payment, to the extent the
Trust has sufficient funds available therefor and (b) the amount of assets of the Trust remaining
available for distribution to Holders in liquidation of the Trust (in either case, the “Liquidation
Distribution”).

          “Guarantee Trustee” means Wilmington Trust Company, until a Successor Guarantee Trustee has
been appointed and has accepted such appointment pursuant to the terms of this Guarantee and
thereafter means each such Successor Guarantee Trustee.

          “Holder” means any holder of Securities, as registered on the books and records of the Trust;
provided, however, that, in determining whether the Holders of the requisite percentage of Capital
Securities have given any request, notice, consent or waiver hereunder, “Holder” shall not include
the Guarantor or any Affiliate of the Guarantor or any other obligor on the Capital Securities.

          “Indenture” means the Junior Subordinated Indenture dated as of April 28, 2005, between U.S.
Bancorp and Delaware Trust Company, National Association (the “Original Indenture Trustee”), as
supplemented by the First Supplemental Indenture dated as of August 3, 2005, between U.S. Bancorp
and the Original Indenture Trustee, as further supplemented by the Second Supplemental Indenture
dated as of December 29, 2005, between U.S. Bancorp, the Original Indenture Trustee, and Wilmington
Trust Company, as successor trustee (the “Successor Indenture Trustee”), as further supplemented by
the Third Supplemental Indenture dated as of March 17, 2006, between U.S. Bancorp and the Successor
Indenture Trustee, as further supplemented by the Fourth Supplemental Indenture dated as of April
12, 2006, between U.S. Bancorp and the Successor Indenture Trustee, as further supplemented by the
Fifth Supplemental Indenture dated as of August 30, 2006, between U.S. Bancorp and the Successor
Indenture Trustee, as further supplemented by the Sixth Supplemental Indenture dated as of February
1, 2007, between U.S. Bancorp and the Successor Indenture Trustee, and as further supplemented by
the Seventh Supplemental Indenture dated of December 10, 2009, between U.S. Bancorp and the
Successor Indenture Trustee, and any indenture supplemental thereto pursuant to which the
Debentures are to be issued to the Property Trustee, as defined in the Trust Agreement.

          “List of Holders” has the meaning assigned to it in Section 2.2 hereof.

          “Majority in Liquidation Amount” means, except as provided in the terms of the Capital
Securities or by the Trust Indenture Act, Holder(s) of outstanding Securities, voting together as a
single class, or, as the context may require, Holders of outstanding Capital Securities or Holders
of outstanding Common Securities, voting separately as a class, who are the record owners of more
than 50% of the aggregate liquidation amount (including the stated amount that would be paid on
redemption, liquidation or otherwise, plus accumulated and unpaid

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Distributions to the date upon which the voting percentages are determined) of all outstanding
Securities of the relevant class. In determining whether the Holders of the requisite amount of
Securities have voted, Securities which are owned by the Guarantor or any Affiliate of the
Guarantor or any other obligor on the Securities shall be disregarded for the purpose of any such
determination.

          “Officers’ Certificate” means, with respect to any Person, a certificate signed on behalf of
such Person by two Authorized Officers (as defined in the Trust Agreement) of such Person. Any
Officers’ Certificate delivered with respect to compliance with a condition or covenant provided
for in this Guarantee shall include:

     (i) a statement that each officer signing the Officers’ Certificate has read
the covenant or condition and the definitions relating thereto;

     (ii) a brief statement of the nature and scope of the examination or
investigation undertaken by each officer on behalf of such Person in rendering the
Officers’ Certificate;

     (iii) a statement that each such officer has made such examination or
investigation as, in such officer’s opinion, is necessary to enable such officer on
behalf of such Person to express an informed opinion as to whether or not such
covenant or condition has been complied with; and

     (iv) a statement as to whether, in the opinion of each such officer acting on
behalf of such Person, such condition or covenant has been complied with.

          “Person” means a legal person, including any individual, corporation, estate, partnership,
joint venture, association, joint stock company, limited liability company, trust, unincorporated
association, or government or any agency or political subdivision thereof, or any other entity of
whatever nature.

          “Redemption Price” has the meaning specified in the Trust Agreement.

          “Responsible Officer” means, with respect to the Guarantee Trustee, any officer with direct
responsibility for the administration of this Guarantee and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is referred because of
that officer’s knowledge of and familiarity with the particular subject.

          “Securities” has the meaning specified in the Recitals hereto.

          “Successor Guarantee Trustee” means a successor Guarantee Trustee possessing the
qualifications to act as Guarantee Trustee under Section 4.1.

          “Trust Agreement” means the Amended and Restated Trust Agreement, dated as of the date hereof,
as amended, modified or supplemented from time to time, among the trustees of the Trust named
therein, the Guarantor, as sponsor, and the Holders, from time to time, of undivided beneficial
ownership interests in the assets of the Trust.

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          “ Trust Enforcement Event” in respect of the Securities means an Event of Default (as defined
in the Indenture) has occurred and is continuing in respect of the Debentures.

          “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended from time to time, or
any successor legislation.

ARTICLE 2

TRUST INDENTURE ACT

     SECTION 2.1. Trust Indenture Act; Application. (a) This Guarantee is subject to
the provisions of the Trust Indenture Act that are required to be part of this Guarantee and shall,
to the extent applicable, be governed by such provisions.

          (b) If and to the extent that any provision of this Guarantee limits, qualifies or conflicts
with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act, such imposed
duties shall control.

     SECTION 2.2. Lists of Holders of Securities. (a) The Guarantor shall provide the
Guarantee Trustee (i) except while the Capital Securities are represented by one or more Global
Securities, at least two Business Days prior to the date for payment of Distributions, a list, in
such form as the Guarantee Trustee may reasonably require, of the names and addresses of the
Holders of the Securities (“List of Holders”) as of the record date relating to the payment of such
Distributions, and (ii) at any other time, within 30 days of receipt by the Guarantor of a written
request from the Guarantee Trustee for a List of Holders as of a date no more than 15 days before
such List of Holders is given to the Guarantee Trustee; provided that the Guarantor shall not be
obligated to provide such List of Holders at any time the List of Holders does not differ from the
most recent List of Holders given to the Guarantee Trustee by the Guarantor. The Guarantee Trustee
shall preserve, in as current a form as is reasonably practicable, all information contained in
Lists of Holders given to it, provided that the Guarantee Trustee may destroy any List of Holders
previously given to it on receipt of a new List of Holders.

          (b) The Guarantee Trustee shall comply with its obligations under Sections 311(a), 311(b) and
312(b) of the Trust Indenture Act.

     SECTION 2.3. Reports by Guarantee Trustee. Within 60 days after May 15 of each year
(commencing with the year of the first anniversary of the issuance of the Securities), the
Guarantee Trustee shall provide to the Holders of the Securities such reports as are required by
Section 313 of the Trust Indenture Act (if any) in the form and in the manner provided by Section
313 of the Trust Indenture Act. The Guarantee Trustee shall also comply with the requirements of
Section 313(d) of the Trust Indenture Act.

     SECTION 2.4. Periodic Reports to Guarantee Trustee. The Guarantor shall provide to
the Guarantee Trustee such documents, reports and information as required by Section 314(a) (if
any) of the Trust Indenture Act and the compliance certificate required by Section 314(a) of the
Trust Indenture Act in the form, in the manner and at the times required by Section 314(a) of the
Trust Indenture Act, but in no event later than 120 days after the end of each calendar year.

- 5 -

 

     SECTION 2.5. Evidence of Compliance with Conditions Precedent. The Guarantor shall
provide to the Guarantee Trustee such evidence of compliance with any conditions precedent, if any,
provided for in this Guarantee that relate to any of the matters set forth in Section 314(c) of the
Trust Indenture Act. Any certificate or opinion required to be given by an officer pursuant to
Section 314(c)(1) may be given in the form of an Officers’ Certificate.

     SECTION 2.6. Guarantee Event of Default; Waiver. The Holders of a Majority in
Liquidation Amount of the Capital Securities may, by vote or written consent, on behalf of the
Holders of all of the Securities, waive any past Guarantee Event of Default and its consequences.
Upon such waiver, any such Guarantee Event of Default shall cease to exist, and any Guarantee Event
of Default arising therefrom shall be deemed to have been cured, for every purpose of this
Guarantee, but no such waiver shall extend to any subsequent or other default or Guarantee Event of
Default or impair any right consequent thereon.

     SECTION 2.7. Guarantee Event of Default; Notice. (a) The Guarantee Trustee shall,
within 90 days after the occurrence of a Guarantee Event of Default actually known to a Responsible
Officer of the Guarantee Trustee, transmit by mail, first class postage prepaid, to the Holders of
the Securities, notices of all such Guarantee Events of Default, unless such defaults have been
cured before the giving of such notice; provided, that the Guarantee Trustee shall be protected in
withholding such notice if and so long as a Responsible Officer of the Guarantee Trustee in good
faith determines that the withholding of such notice is in the interests of the Holders of the
Securities.

          (b) The Guarantee Trustee shall not be deemed to have knowledge of any Guarantee Event of
Default unless the Guarantee Trustee shall have received written notice thereof or a Responsible
Officer of the Guarantee Trustee charged with the administration of this Guarantee Agreement shall
have obtained actual knowledge thereof.

     SECTION 2.8. Conflicting Interests. The Trust Agreement shall be deemed to be
specifically described in this Guarantee for the purposes of clause (i) of the first proviso
contained in Section 310(b) of the Trust Indenture Act.

     SECTION 2.9. Disclosure of InformationThe disclosure of information as to the names
and addresses of the Holders of the Securities in accordance with Section 312 of the Trust
Indenture Act, regardless of the source from which such information was derived, shall not be
deemed to be a violation of any existing law, or any law hereafter enacted which does not
specifically refer to Section 312 of the Trust Indenture Act, nor shall the Guarantee Trustee be
held accountable by reason of mailing any material pursuant to a request made under Section 312(b)
of the Trust Indenture Act.

     SECTION 2.10. Guarantee Trustee May File Proofs of Claim. Upon the occurrence of a
Guarantee Event of Default, the Guarantee Trustee is hereby authorized to (a) recover judgment, in
its own name and as trustee of an express trust, against the Guarantor for the whole amount of any
Guarantee Payments remaining unpaid and (b) file such proofs of claim and other papers or documents
as may be necessary or advisable in order to have its claims and those of the Holders of the
Securities allowed in any judicial proceedings relative to the Guarantor, its creditors or its
property.

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ARTICLE 3

POWERS, DUTIES AND RIGHTS OF

GUARANTEE TRUSTEE

     SECTION 3.1. Powers and Duties of Guarantee Trustee.

          (a) This Guarantee shall be held by the Guarantee Trustee on behalf of the Trust for the
benefit of the Holders of the Securities, and the Guarantee Trustee shall not transfer this
Guarantee to any Person except a Holder of Securities exercising his or her rights pursuant to
Section 5.4(b) or to a Successor Guarantee Trustee on acceptance by such Successor Guarantee
Trustee of its appointment to act as Successor Guarantee Trustee. The right, title and interest of
the Guarantee Trustee in and to this Guarantee shall automatically vest in any Successor Guarantee
Trustee, and such vesting and succession of title shall be effective whether or not conveyance
documents have been executed and delivered pursuant to the appointment of such Successor Guarantee
Trustee.

          (b) If a Guarantee Event of Default actually known to a Responsible Officer of the Guarantee
Trustee has occurred and is continuing, the Guarantee Trustee shall enforce this Guarantee for the
benefit of the Holders of the Securities.

          (c) The Guarantee Trustee, before the occurrence of any Guarantee Event of Default and after
the curing of all Guarantee Events of Default that may have occurred, shall undertake to perform
only such duties as are specifically set forth in this Guarantee, and no implied covenants shall be
read into this Guarantee against the Guarantee Trustee. In case a Guarantee Event of Default has
occurred (that has not been cured or waived pursuant to Section 2.6) and is actually known to a
Responsible Officer of the Guarantee Trustee, the Guarantee Trustee shall exercise such of the
rights and powers vested in it by this Guarantee, and use the same degree of care and skill in its
exercise thereof, as a prudent person would exercise or use under the circumstances in the conduct
of his or her own affairs.

          (d) No provision of this Guarantee shall be construed to relieve the Guarantee Trustee from
liability for its own negligent action, its own negligent failure to act, or its own willful
misconduct, except that:

     (i) prior to the occurrence of any Guarantee Event of Default and after the
curing or waiving of all such Guarantee Events of Default that may have occurred:

	 	(A)	 	the duties and obligations of the
Guarantee Trustee shall be determined solely by the express
provisions of this Guarantee, and the Guarantee Trustee shall
not be liable except for the performance of such duties and
obligations as are specifically set forth in this Guarantee, and
no implied covenants or obligations shall be read into this
Guarantee against the Guarantee Trustee; and

- 7 -

 

	 	(B)	 	in the absence of bad faith on
the part of the Guarantee Trustee, the Guarantee Trustee may
conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any
certificates or opinions furnished to the Guarantee Trustee and
conforming to the requirements of this Guarantee; but in the
case of any such certificates or opinions that by any provision
hereof are specifically required to be furnished to the
Guarantee Trustee, the Guarantee Trustee shall be under a duty
to examine the same to determine whether or not they conform to
the requirements of this Guarantee;

     (ii) the Guarantee Trustee shall not be liable for any error of judgment made
in good faith by a Responsible Officer of the Guarantee Trustee, unless it shall be
proved that the Guarantee Trustee was negligent in ascertaining the pertinent facts
upon which such judgment was made;

     (iii) the Guarantee Trustee shall not be liable with respect to any action
taken or omitted to be taken by it in good faith in accordance with the direction of
the Holders of not less than a Majority in Liquidation Amount of the Securities
relating to the time, method and place of conducting any proceeding for any remedy
available to the Guarantee Trustee, or exercising any trust or power conferred upon
the Guarantee Trustee under this Guarantee; and

     (iv) no provision of this Guarantee shall require the Guarantee Trustee to
expend or risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its rights or powers,
if the Guarantee Trustee shall have reasonable grounds for believing that the
repayment of such funds or liability is not reasonably assured to it under the terms
of this Guarantee or if the Guarantee Trustee shall have reasonable grounds for
believing that an indemnity, reasonably satisfactory to the Guarantee Trustee,
against such risk or liability is not reasonably assured to it under the terms of
this Guarantee.

     SECTION 3.2. Certain Rights of Guarantee Trustee. (a) Subject to the provisions of
Section 3.1:

     (i) The Guarantee Trustee may conclusively rely, and shall be fully protected
in acting or refraining from acting upon, any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document believed
by it to be genuine and to have been signed, sent or presented by the proper party
or parties;

     (ii) Any direction or act of the Guarantor contemplated by this Guarantee shall
be sufficiently evidenced by an Officers’ Certificate;

- 8 -

 

     (iii) Whenever, in the administration of this Guarantee, the Guarantee Trustee
shall deem it desirable that a matter be proved or established before taking,
suffering or omitting any action hereunder, the Guarantee Trustee (unless other
evidence is herein specifically prescribed) may, in the absence of bad faith on its
part, request and conclusively rely upon an Officers’ Certificate which, upon
receipt of such request, shall be promptly delivered by the Guarantor;

     (iv) The Guarantee Trustee shall have no duty to see to any recording, filing
or registration or any instrument (or any rerecording, refiling or re-registration
thereof);

     (v) The Guarantee Trustee may consult with counsel, and the advice or opinion
of such counsel with respect to legal matters shall be full and complete
authorization and protection in respect of any action taken, suffered or omitted by
it hereunder in good faith and in accordance with such advice or opinion. Such
counsel may be counsel to the Guarantor or any of its Affiliates and may include any
of its employees. The Guarantee Trustee shall have the right at any time to seek
instructions concerning the administration of this Guarantee from any court of
competent jurisdiction;

     (vi) The Guarantee Trustee shall be under no obligation to exercise any of the
rights or powers vested in it by this Guarantee at the request or direction of any
Holder, unless such Holder shall have provided to the Guarantee Trustee such
security and indemnity, reasonably satisfactory to the Guarantee Trustee, against
the costs, expenses (including attorneys’ fees and expenses and the expenses of the
Guarantee Trustee’s agents, nominees or custodians) and liabilities that might be
incurred by it in complying with such request or direction, including such
reasonable advances as may be requested by the Guarantee Trustee; provided, that
nothing contained in this Section 3.2(a)(vi) shall be taken to relieve the Guarantee
Trustee, upon the occurrence of a Guarantee Event of Default, of its obligation to
exercise the rights and powers vested in it by this Guarantee;

     (vii) The Guarantee Trustee shall not be bound to make any investigation into
the facts or matters stated in any resolution, certificate, statement, instrument,
opinion, report, notice, request, direction, consent, order, bond, debenture, note,
other evidence of indebtedness or other paper or document, but the Guarantee
Trustee, in its discretion, may make such further inquiry or investigation into such
facts or matters as it may see fit;

     (viii) The Guarantee Trustee may execute any of the trusts or powers hereunder
or perform any duties hereunder either directly or by or through agents, nominees,
custodians or attorneys, and the Guarantee Trustee shall not be responsible for any
misconduct or negligence on the part of any agent or attorney appointed with due
care by it hereunder;

     (ix) Any action taken by the Guarantee Trustee or its agents hereunder shall
bind the Holders, and the signature of the Guarantee Trustee or its agents

- 9 -

 

alone shall be sufficient and effective to perform any such action. No third
party shall be required to inquire as to the authority of the Guarantee Trustee to
so act or as to its compliance with any of the terms and provisions of this
Guarantee, both of which shall be conclusively evidenced by the Guarantee Trustee’s
or its agent’s taking such action; and

     (x) Whenever in the administration of this Guarantee, the Guarantee Trustee
shall deem it desirable to receive instructions with respect to enforcing any remedy
or right or taking any other action hereunder, the Guarantee Trustee (i) may request
written instructions from the Holders of a Majority in Liquidation Amount of the
Securities, (ii) may refrain from enforcing such remedy or right or taking such
other action until such written instructions are received and (iii) shall be
protected in conclusively relying on or acting in accordance with such written
instructions.

          (b) No provision of this Guarantee shall be deemed to impose any duty or obligation on the
Guarantee Trustee to perform any act or acts or exercise any right, power, duty or obligation
conferred or imposed on it in any jurisdiction in which it shall be illegal, or in which the
Guarantee Trustee shall be unqualified or incompetent to act in accordance with applicable law, to
perform any such act or acts or to exercise any such right, power, duty or obligation. No
permissive power or authority available to the Guarantee Trustee shall be construed to be a duty.

ARTICLE 4

GUARANTEE TRUSTEE

     SECTION 4.1. Guarantee Trustee; Eligibility.

(a) There shall be at all times a Guarantee Trustee which shall:

     (i) not be an Affiliate of the Guarantor; and

     (ii) be a corporation organized and doing business under the laws of the United
States of America or any state or territory thereof or of the District of Columbia,
or a corporation or other Person permitted by the Securities and Exchange Commission
to act as an institutional trustee under the Trust Indenture Act, authorized under
such laws to exercise corporate trust powers, having a combined capital and surplus
of at least 50 million U.S. dollars ($50,000,000), and subject to supervision or
examination by federal, state, territorial or District of Columbia authority. If
such corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of the supervising or examining authority referred to above,
then, for the purposes of this Section 4.1(a)(ii), the combined capital and surplus
of such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published.

- 10 -

 

          (b) If at any time the Guarantee Trustee shall cease to be eligible to so act under Section
4.1(a), the Guarantee Trustee shall immediately resign in the manner and with the effect set out in
Section 4.2(c).

          (c) If the Guarantee Trustee has or shall acquire any “conflicting interest” within the
meaning of Section 310(b) of the Trust Indenture Act, the Guarantee Trustee and Guarantor shall in
all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

     SECTION 4.2. Appointment, Removal and Resignation of Guarantee Trustee.

          (a) Subject to Section 4.2(b), unless a Guarantee Event of Default shall have occurred and be
continuing, the Guarantee Trustee may be appointed or removed with or without cause at any time by
the Guarantor.

          (b) The Guarantee Trustee shall not be removed in accordance with Section 4.2(a) until a
Successor Guarantee Trustee has been appointed and has accepted such appointment by written
instrument executed by such Successor Guarantee Trustee and delivered to the Guarantor.

          (c) The Guarantee Trustee appointed to office shall hold such office until a Successor
Guarantee Trustee shall have been appointed or until its removal or resignation. The Guarantee
Trustee may resign from office (without need for prior or subsequent accounting) by an instrument
in writing executed by the Guarantee Trustee and delivered to the Guarantor, which resignation
shall not take effect until a Successor Guarantee Trustee has been appointed and has accepted such
appointment by instrument in writing executed by such Successor Guarantee Trustee and delivered to
the Guarantor and the resigning Guarantee Trustee.

          (d) If no Successor Guarantee Trustee shall have been appointed and accepted appointment as
provided in this Section 4.2 within 60 days after delivery to the Guarantor of an instrument of
removal or resignation, the removed or resigning Guarantee Trustee may petition any court of
competent jurisdiction for appointment of a Successor Guarantee Trustee. Such court may thereupon,
after prescribing such notice, if any, as it may deem proper, appoint a Successor Guarantee
Trustee.

          (e) No Guarantee Trustee shall be liable for the acts or omissions to act of any Successor
Guarantee Trustee.

          (f) Upon termination of this Guarantee or removal or resignation of the Guarantee Trustee
pursuant to this Section 4.2, the Guarantor shall pay to the Guarantee Trustee all amounts owing
for fees and reimbursement of expenses which have accrued to the date of such termination, removal
or resignation.

- 11 -

 

ARTICLE 5

GUARANTEE

     SECTION 5.1. GuaranteeThe Guarantor irrevocably and unconditionally agrees to pay in
full to the Holders the Guarantee Payments (without duplication of amounts theretofore paid by the
Trust), as and when due, regardless of any defense, right of set-off or counterclaim that the Trust
may have or assert. The Guarantor’s obligation to make a Guarantee Payment may be satisfied by
direct payment of the required amounts by the Guarantor to the Holders or by causing the Trust to
pay such amounts to the Holders. Notwithstanding anything to the contrary herein, the Guarantor
retains all of its rights under the Indenture to defer the interest payments on the Debentures
pursuant to the terms thereof and the Guarantor shall not be obligated hereunder to make any
Guarantee Payments during any Extension Period (as defined in the Indenture) with respect to the
Distributions (as defined in the Trust Agreement) on the Securities.

     SECTION 5.2. Waiver of Notice and Demand.

          The Guarantor hereby waives notice of acceptance of this Guarantee and of any liability to
which it applies or may apply, presentment, demand for payment, any right to require a proceeding
first against the Trust or any other Person before proceeding against the Guarantor, protest,
notice of nonpayment, notice of dishonor, notice of redemption and all other notices and demands.

     SECTION 5.3. Obligations Not Affected.

          The obligations, covenants, agreements and duties of the Guarantor under this Guarantee shall
be absolute and unconditional and shall remain in full force and effect until the entire
liquidation amount of all outstanding Securities shall have been paid and such obligation shall in
no way be affected or impaired by reason of the happening from time to time of any event, including
without limitation, the following, whether or not with notice to, or the consent of, the Guarantor:

     (a) The release or waiver, by operation of law or otherwise, of the performance or
observance by the Trust of any express or implied agreement, covenant, term or condition
relating to the Securities to be performed or observed by the Trust;

     (b) The extension of time for the payment by the Trust of all or any portion of the
Distributions, Redemption Price, Liquidation Distribution or any other sums payable under
the terms of the Securities or the extension of time for the performance of any other
obligation under, arising out of, or in connection with the Securities (other than an
extension of time for payment of Distributions, Redemption Price, Liquidation Distribution
or other sum payable that results from the extension of any interest payment period on the
Debentures);

     (c) Any failure, omission, delay or lack of diligence on the part of the Property
Trustee or the Holders to enforce, assert or exercise any right, privilege, power or remedy
conferred on the Property Trustee or the Holders pursuant to the terms of the

- 12 -

 

Securities, or any action on the part of the Trust granting indulgence or extension of
any kind;

     (d) The voluntary or involuntary liquidation, dissolution, sale of any collateral,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of debt of, or other similar
proceedings affecting, the Trust or any of the assets of the Trust;

     (e) Any invalidity of, or defect or deficiency in, the Securities;

     (f) The settlement or compromise of any obligation guaranteed hereby or hereby
incurred; or

     (g) Any other circumstance whatsoever that might otherwise constitute a legal or
equitable discharge or defense of a guarantor, it being the intent of this Section 5.3 that
the obligations of the Guarantor hereunder shall be absolute and unconditional under any and
all circumstances.

          There shall be no obligation of the Guarantee Trustee or the Holders to give notice to, or
obtain consent of the Guarantor or any other Person with respect to the happening of any of the
foregoing.

          No setoff, counterclaim, reduction or diminution of any obligation, or any defense of any kind
or nature that the Guarantor has or may have against any Holder shall be available hereunder to the
Guarantor against such Holder to reduce the payments to it under this Guarantee.

     SECTION 5.4. Rights of Holders.

          (a) The Holders of at least a Majority in Liquidation Amount of the Securities have the right
to direct the time, method and place of conducting any proceeding for any remedy available to the
Guarantee Trustee in respect of this Guarantee or to direct the exercise of any trust or power
conferred upon the Guarantee Trustee under this Guarantee.

          (b) If the Guarantee Trustee fails to enforce this Guarantee, then any Holder of Securities
may, subject to the subordination provisions of Section 6.2, institute a legal proceeding directly
against the Guarantor to enforce the Guarantee Trustee’s rights under this Guarantee without first
instituting a legal proceeding against the Trust, the Guarantee Trustee or any other person or
entity. In addition, if the Guarantor has failed to make a Guarantee Payment, a Holder of
Securities may, subject to the subordination provisions of Section 6.2, directly institute a
proceeding against the Guarantor for enforcement of the Guarantee for such payment to the Holder of
the Securities of the principal of or interest on the Debentures on or after the respective due
dates specified in the Debentures, and the amount of the payment will be based on the Holder’s pro
rata share of the amount due and owing on all of the Securities. The Guarantor hereby waives any
right or remedy to require that any action on this Guarantee be brought first against the Trust or
any other person or entity before proceeding directly against the Guarantor.

     SECTION 5.5. Guarantee of Payment.

- 13 -

 

          This Guarantee creates a guarantee of payment and not of collection.

     SECTION 5.6.  Subrogation. 

          The Guarantor shall be subrogated to all (if any) rights of the Holders of Securities against
the Trust in respect of any amounts paid to such Holders by the Guarantor under this Guarantee;
provided, however, that the Guarantor shall not (except to the extent required by mandatory
provisions of law) be entitled to enforce or exercise any right that it may acquire by way of
subrogation or any indemnity, reimbursement or other agreement, in all cases as a result of payment
under this Guarantee, if at the time of any such payment, any amounts are due and unpaid under this
Guarantee. If any amount shall be paid to the Guarantor in violation of the preceding sentence,
the Guarantor agrees to hold such amount in trust for the Holders and to pay over such amount to
the Guarantee Trustee for the benefit of the Holders.

     SECTION 5.7. Independent Obligations.

          The Guarantor acknowledges that its obligations hereunder are independent of the obligations
of the Trust with respect to the Securities, and that the Guarantor shall be liable as principal
and as debtor hereunder to make Guarantee Payments pursuant to the terms of this Guarantee
notwithstanding the occurrence of any event referred to in subsections 5.3(a) through 5.3(g),
inclusive, hereof.

ARTICLE 6

LIMITATION OF TRANSACTIONS; SUBORDINATION

     SECTION 6.1. Limitation of Transactions.

          So long as any Securities remain outstanding, (i) if there shall have occurred an Event of
Default (as defined in the Indenture) with respect to the Debentures, (ii) if there shall have
occurred a Guarantee Event of Default or (iii) during any Deferral Period as provided in the
Indenture, then the Guarantor shall not, and shall not permit any subsidiary of the Guarantor, to
(x) declare or pay any dividends or distributions on, or redeem, purchase, acquire or make a
liquidation payment with respect to, any of the Guarantor’s capital stock or (y) make any payment
of principal, interest or premium, if any, on or repay, purchase or redeem any debt securities of
the Guarantor that rank pari passu with or junior in interest to the Debentures, other than pro
rata payments of accrued and unpaid interest on the Debentures and any other debt securities of the
Guarantor that rank equally with the Debentures except and to the extent the terms of any such debt
securities would prohibit the Guarantor from making such pro rata payment or (z) make any guarantee
payments with respect to any guarantee by the Guarantor of the debt securities of any subsidiary of
the Guarantor if such guarantee ranks pari passu with or junior in interest to the this Guarantee,
other than pro rata payments of accrued and unpaid amounts on this Guarantee and any other
guarantees by the Guarantor of debt securities of any subsidiary of the Guarantor that rank equally
with this Guarantee except and to the extent the terms of any such debt securities would prohibit
the Guarantor from making such pro rata payment (other than (a) dividends or distributions in
Common Stock of the Guarantor, (b) any declaration of a dividend in connection with the
implementation of a rights plan or the issuance

- 14 -

 

of stock under any such plan or the redemption or repurchase of any such rights pursuant
thereto, (c) payments under this Guarantee and (d) purchases of Common Stock related to the
issuance of Common Stock or rights under any of the Company’s benefits plans for its directors,
officers or employees).

     SECTION 6.2. Ranking.

          This Guarantee will constitute an unsecured obligation of the Guarantor and will rank
subordinate and junior in right of payment to all Senior and Subordinated Debt (as defined in
[Section 3.1(o)] of the Seventh Supplemental Indenture) of the Guarantor in the same manner and to
the same extent as set forth in Article XIII of the Indenture.

     SECTION 6.3. Subordination of Common Securities.

          If a Trust Enforcement Event has occurred and is continuing under the Trust Agreement, the
rights of the holders of the Common Securities to receive Guarantee Payments hereunder shall be
subordinated to the rights of the Holders of the Capital Securities to receive Guarantee Payments
under this Guarantee.

ARTICLE 7

TERMINATION

     SECTION 7.1. Termination.

          This Guarantee shall terminate upon (i) full payment of the Redemption Price of all
Securities, (ii) distribution of the Debentures to the Holders of all the Securities or (iii) full
payment of the amounts payable in accordance with the Trust Agreement upon liquidation of the
Trust. Notwithstanding the foregoing, this Guarantee will continue to be effective or will be
reinstated, as the case may be, if at any time any Holder of Securities must restore payment of any
sums paid under the Securities or under this Guarantee.

ARTICLE 8

INDEMNIFICATION

     SECTION 8.1. Indemnification.

          The Guarantor agrees to indemnify each Debenture Issuer Indemnified Person, the Property
Trustee and the Delaware Trustee (as each such term is defined in the Trust Agreement) for, and to
hold each such Person harmless against any loss, liability or expense incurred without negligence
or bad faith on its part, arising out of or in connection with the acceptance or administration of
the trust or trusts hereunder, including the reasonable costs and expenses of defending itself
against, or investigating, any claim or liability in connection with the exercise or performance of
any of its powers or duties hereunder. The provisions of this Section 8.1 shall survive the
termination of this Guarantee or the resignation or removal of the Guarantee Trustee.

- 15 -

 

ARTICLE 9

MISCELLANEOUS

     SECTION 9.1. Successors and Assigns.

          All guarantees and agreements contained in this Guarantee shall bind the successors, assigns,
receivers, trustees and representatives of the Guarantor and shall inure to the benefit of the
Holders of the Securities then outstanding. Except in connection with a consolidation, merger or
sale involving the Guarantor that is permitted under Article VIII of the Indenture and pursuant to
which the successor or assignee agrees in writing to perform the Guarantor’s obligations hereunder,
the Guarantor shall not assign its obligations hereunder.

     SECTION 9.2. Amendments.

          Except with respect to any changes that do not materially adversely affect the rights of the
Holders (in which case no consent of the Holders will be required), this Guarantee may not be
amended without the prior approval of the Holders of at least a Majority in Liquidation Amount of
the Securities. The provisions of Section 11.2 of the Trust Agreement with respect to meetings of,
and action by written consent of, the Holders of the Securities apply to the giving of such
approval.

     SECTION 9.3. Notices.

          All notices provided for in this Guarantee shall be in writing, duly signed by the party
giving such notice, and shall be delivered by hand, telecopied or mailed by registered or certified
mail, as follows:

     (a) If given to the Guarantee Trustee, at the Guarantee Trustee’s mailing address set
forth below (or such other address as the Guarantee Trustee may give notice of to the
Guarantor and the Holders of the Securities):

Wilmington Trust Company

1100 North Market Street

Wilmington, Delaware 19890

Facsimile No.: (302) 636-4145

Attention: Corporate Trust Administration

     (b) If given to the Guarantor, at the Guarantor’s mailing addresses set forth below (or
such other address as the Guarantor may give notice of to the Guarantee Trustee and the
Holders of the Securities):

- 16 -

 

U.S. Bancorp

800 Nicollet Mall

Minneapolis, Minnesota 55402

Facsimile No.: (612) 303-1338

Attention: Treasury Department

     (c) If given to any Holder of Securities, at the address set forth on the books and
records of the Trust.

          All such notices shall be deemed to have been given when received in person, telecopied with
receipt confirmed, or mailed by first class mail, postage prepaid, except that if a notice or other
document is refused delivery or cannot be delivered because of a changed address of which no notice
was given, such notice or other document shall be deemed to have been delivered on the date of such
refusal or inability to deliver.

     SECTION 9.4. Benefit.

          This Guarantee is solely for the benefit of the Holders of the Securities and, subject to
Section 3.1(a), is not separately transferable from the Securities.

     SECTION 9.5. Governing Law. THIS GUARANTEE SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

[The remainder of this page left blank intentionally; the signature page follows.]

- 17 -

 

     IN WITNESS WHEREOF, this Guarantee is executed as of the day and year first above written.

	 	 	 	 	 
	 	U.S. BANCORP,

as Guarantor

 	 
	 	By:  	/s/  Kenneth D. Nelson
 	 
	 	 	Name:  	Kenneth D. Nelson 	 
	 	 	Title:  	Executive Vice President and Treasurer 	 

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY,

as Guarantee Trustee

 	 
	 	By:  	/s/  Denise M. Geran
 	 
	 	 	Name:  	Denise M. Geran 	 
	 	 	Title:  	Vice President 	 

- 18 -exv10w1

EXHIBIT 10.1

EQUITY PURCHASE AGREEMENT

by and among

XATA CORPORATION,

TURNPIKE GLOBAL TECHNOLOGIES INC.,

TURNPIKE GLOBAL TECHNOLOGIES LLC,

THE STOCKHOLDERS OF TURNPIKE GLOBAL TECHNOLOGIES INC.,

THE MEMBERS OF TURNPIKE GLOBAL TECHNOLOGIES LLC,

and

BRENDAN STAUB, AS SELLERS’ REPRESENTATIVE

DATED AS OF DECEMBER 4, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	1.1
	 	Definitions	 	 	1	 
	1.2
	 	Interpretation	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE II PURCHASE AND SALE	 	 	11	 
	2.1
	 	Purchase of the Shares and Membership Interests	 	 	11	 
	2.2
	 	Purchase Price	 	 	12	 
	2.3
	 	Closing and Guaranteed Payments	 	 	12	 
	2.4
	 	Purchase Price Adjustment	 	 	12	 
	2.5
	 	Earnout Payments	 	 	13	 
	2.6
	 	Non-Accredited US Sellers	 	 	16	 
	2.7
	 	Shareholder Approval	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLERS AS TO THE COMPANIES	 	 	16	 
	3.1
	 	Organization and Authorization	 	 	16	 
	3.2
	 	Due Execution and Delivery; Binding Obligations	 	 	17	 
	3.3
	 	Capitalization	 	 	17	 
	3.4
	 	No Conflict or Violation	 	 	19	 
	3.5
	 	Legal Proceedings, Orders and Judgments	 	 	19	 
	3.6
	 	Compliance with Law	 	 	19	 
	3.7
	 	Financial Statements	 	 	19	 
	3.8
	 	Absence of Undisclosed Liabilities	 	 	20	 
	3.9
	 	Absence of Changes	 	 	20	 
	3.10
	 	Material Contracts	 	 	22	 
	3.11
	 	Material Customers	 	 	23	 
	3.12
	 	Real Property	 	 	23	 
	3.13
	 	Tangible Property	 	 	24	 
	3.14
	 	Taxes	 	 	24	 
	3.15
	 	Permits	 	 	26	 
	3.16
	 	Intellectual Property	 	 	26	 

 

 

	 	 	 	 	 	 	 
	3.17
	 	Employee Matters and Benefit Plans	 	 	29	 
	3.18
	 	Environmental Matters	 	 	33	 
	3.19
	 	Insurance	 	 	33	 
	3.20
	 	Affiliate Transactions	 	 	34	 
	3.21
	 	No Brokers or Finders	 	 	34	 
	3.22
	 	Accounts Receivable	 	 	34	 
	3.23
	 	Inventory	 	 	34	 
	3.24
	 	Powers of Attorney	 	 	34	 
	3.25
	 	Product Warranties	 	 	34	 
	3.26
	 	Products Liability	 	 	35	 
	3.27
	 	Material Suppliers	 	 	35	 
	3.28
	 	Indebtedness	 	 	35	 
	3.29
	 	Privacy Matters	 	 	35	 
	3.30
	 	Full Disclosure	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLERS	 	 	37	 
	4.1
	 	Organization and Authorization; Capacity	 	 	37	 
	4.2
	 	Due Execution and Delivery; Binding Obligations	 	 	37	 
	4.3
	 	Title to Shares and Membership Interests	 	 	37	 
	4.4
	 	No Conflict or Violation	 	 	37	 
	4.5
	 	Regulation D Securities	 	 	38	 
	4.6
	 	Regulation S Securities	 	 	39	 
	4.7
	 	Non-Accredited US Sellers	 	 	40	 
	4.8
	 	Legal and Other Advice; Access to Information	 	 	40	 
	4.9
	 	No Other Representations	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER	 	 	41	 
	5.1
	 	Organization and Authorization of Purchaser	 	 	41	 
	5.2
	 	Due Execution and Delivery; Binding Obligations	 	 	41	 
	5.3
	 	No Conflict or Violation	 	 	41	 
	5.4
	 	No Brokers or Finders	 	 	41	 
	5.5
	 	Investment Intent	 	 	41	 
	5.6
	 	Issuance of Shares of Purchaser Common Stock	 	 	42	 
	5.7
	 	Financing Agreement	 	 	42	 
	5.8
	 	No Other Representations and Warranties	 	 	42	 

 

 

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE VI COVENANTS	 	 	42	 
	6.1
	 	Access to Information	 	 	42	 
	6.2
	 	Conduct of the Business	 	 	42	 
	6.3
	 	Regulatory and Other Authorizations; Consents; Permits	 	 	44	 
	6.4
	 	Confidentiality	 	 	44	 
	6.5
	 	Publicity	 	 	45	 
	6.6
	 	Indemnification of Officers and Directors	 	 	45	 
	6.7
	 	Tax Matters	 	 	45	 
	6.8
	 	Further Assurances	 	 	47	 
	6.9
	 	Post-Closing Maintenance of Records	 	 	47	 
	6.10
	 	Employees and Employee Benefit Plans	 	 	47	 
	6.11
	 	Purchaser Shareholder Approval	 	 	48	 
	6.12
	 	Covenant Not to Compete	 	 	49	 
	6.13
	 	No Shopping	 	 	49	 
	6.14
	 	Lock-Up Agreement	 	 	50	 
	6.15
	 	Registration of Purchaser Common Stock	 	 	50	 
	6.16
	 	Audit	 	 	50	 
	6.17
	 	Financing Agreement	 	 	50	 
	 
	 	 	 	 	 	 
	ARTICLE VII CONDITIONS PRECEDENT TO PURCHASER’S PERFORMANCE	 	 	50	 
	7.1
	 	Accuracy of Sellers’ Representations and Warranties	 	 	51	 
	7.2
	 	Performance of Seller Parties’ Covenants	 	 	51	 
	7.3
	 	No Governmental Order or Adverse Law	 	 	51	 
	7.4
	 	Deliverables	 	 	51	 
	7.5
	 	Contemporaneous Closing	 	 	51	 
	7.6
	 	No Material Adverse Effect	 	 	51	 
	7.7
	 	Required Consents	 	 	51	 
	7.8
	 	Good Standings	 	 	51	 
	 
	 	 	 	 	 	 
	ARTICLE VIII CONDITIONS PRECEDENT TO SELLERS’ PERFORMANCE	 	 	52	 
	8.1
	 	Accuracy of Purchaser’s Representations and Warranties	 	 	52	 
	8.2
	 	Performance of Purchaser’s Covenants	 	 	52	 
	8.3
	 	No Governmental Order or Adverse Law	 	 	52	 
	8.4
	 	Deliverables	 	 	52	 
	 
	 	 	 	 	 	 
	ARTICLE IX TERMINATION PRIOR TO CLOSING	 	 	52	 

 

 

	 	 	 	 	 	 	 
	9.1
	 	Termination	 	 	52	 
	9.2
	 	Effect on Obligations	 	 	53	 
	 
	 	 	 	 	 	 
	ARTICLE X THE CLOSING	 	 	53	 
	10.1
	 	Closing	 	 	53	 
	10.2
	 	Sellers’ Obligations	 	 	53	 
	10.3
	 	Purchaser’s Obligations	 	 	54	 
	 
	 	 	 	 	 	 
	ARTICLE XI INDEMNIFICATION	 	 	55	 
	11.1
	 	Survival of Representations and Warranties	 	 	55	 
	11.2
	 	Indemnification Obligations	 	 	55	 
	11.3
	 	Exclusive Remedy	 	 	57	 
	11.4
	 	Materiality Qualifiers	 	 	57	 
	11.5
	 	Effect of Knowledge	 	 	57	 
	11.6
	 	Adjustments to Purchase Price	 	 	58	 
	11.7
	 	Right of Set Off	 	 	58	 
	11.8
	 	Patent Claims	 	 	58	 
	 
	 	 	 	 	 	 
	ARTICLE XII MISCELLANEOUS PROVISIONS	 	 	58	 
	12.1
	 	Fees and Expenses	 	 	58	 
	12.2
	 	Notices	 	 	58	 
	12.3
	 	Schedules	 	 	59	 
	12.4
	 	Entire Agreement	 	 	59	 
	12.5
	 	Governing Law	 	 	60	 
	12.6
	 	Waiver and Amendment	 	 	60	 
	12.7
	 	Assignment	 	 	60	 
	12.8
	 	Successors and Assigns	 	 	60	 
	12.9
	 	No Third Party Beneficiaries	 	 	60	 
	12.10
	 	Sellers’ Representative	 	 	60	 
	12.11
	 	Severability	 	 	61	 
	12.12
	 	No Presumption	 	 	61	 
	12.13
	 	Counterparts	 	 	61	 
	12.14
	 	Facsimile Signatures	 	 	61	 
	12.15
	 	Waiver of Jury Trial	 	 	62	 

 

 

EQUITY PURCHASE AGREEMENT

          This EQUITY PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of
December 4, 2009, by and among XATA Corporation, a Minnesota corporation (“Purchaser”),
Turnpike Global Technologies Inc., an Ontario corporation (the “CA Company”), all
stockholders (except Kelly Frey) of the CA Company (which are listed on Schedule A attached
hereto) (“CA Company Sellers”), Turnpike Global Technologies LLC, a Delaware limited
liability company (the “US Company” and together with the CA Company, the
“Companies” and each a “Company”), all members of the US Company (which are listed
on Schedule B attached hereto) (the “US Company Sellers” and together with the CA
Company Sellers, the “Sellers” and each a “Seller”), and Brendan Staub in his
capacity as the Sellers’ Representative (the “Sellers’ Representative”).

RECITALS

          A. The CA Company Sellers own all of the issued and outstanding shares of capital stock (the
“Shares”) of the CA Company, except 54,550 shares of common stock of the CA Company owned
by Kelly Frey (the “Frey Shares”).

          B. The US Company Sellers own all of the issued and outstanding membership interests (the
“Membership Interests”) of the US Company.

          C. The CA Company Sellers desire to sell the Shares to Purchaser and the US Company Sellers
desire to sell the Membership Interests to Purchaser, and Purchaser desires to purchase the Shares
and the Membership Interests from Sellers, in each case on the terms and subject to the conditions
set forth in this Agreement.

          D. Simultaneously with the closing of the transactions contemplated hereby, the Purchaser
shall also close on the transactions contemplated by that certain Equity Purchase Agreement, dated
as December 2, 2009, between Kelly Frey and the Purchaser, (the “Frey Purchase Agreement”),
pursuant to which the Purchaser is purchasing the Frey Shares.

          E. On the date hereof, Purchaser has entered into a Note Purchase Agreement with various
investors (the “Financing Agreement”) for purposes of financing the acquisitions
contemplated hereby.

AGREEMENT

          NOW, THEREFORE, in consideration of the foregoing recitals and the respective covenants,
agreements, representations and warranties contained herein, the parties, intending to be legally
bound, agree as follows:

ARTICLE I

DEFINITIONS

          1.1 Definitions. The following capitalized terms used herein shall have the meanings
indicated:

 

 

          “Acceptance Notice” has the meaning set forth in Section 2.4.

          “Accounts Receivable” has the meaning set forth in Section 3.22.

          “Accredited US Sellers” has the meaning set forth in Section 4.5.

          “Action” means any action, claim, suit, litigation, arbitration, mediation or other
proceeding by or before any Governmental Authority.

          “Affected Employees” has the meaning set forth in Section 6.10.

          “Affiliate” means, with respect to any Person, any other Person that, directly or
indirectly, through one or more intermediaries, controls, or is controlled by, or is under common
control with such Person. For purposes of this definition, “control” means, with respect to any
Person, 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.

          “Agreement” has the meaning given to such term in the preamble hereto.

          “Ancillary Documents” means, with respect to a Person, any document executed and
delivered by or on behalf of such Person, in connection with the execution and delivery of this
Agreement or Closing, pursuant to the terms of this Agreement (but not including this Agreement).

          “Business Day” means any day, other than a Saturday or Sunday or a statutory holiday,
on which banks are generally open for the transaction of business in Minneapolis, Minnesota and
Toronto, Ontario.

          “CA Company” has the meaning given to such term in the preamble hereto.

          “CA Company Sellers” has the meaning given to such term in the preamble hereto.

          “CA Company Common Stock” has the meaning given to such term in Section 3.3.

          “CA Company Preferred Stock” has the meaning given to such term in Section
3.3.

          “Canadian GAAP” means generally accepted accounting principles as in effect in Canada
from time to time.

          “Cap” has the meaning set forth in Section 11.2.

          “Closing” has the meaning given to such term in Section10.1.

          “Closing Cash Amount” means $9,050,000.

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          “Closing Date” has the meaning given to such term in Section 10.1.

          “COBRA” has the meaning given to such term in Section 3.17.

          “Code” means the Internal Revenue Code of 1986, as amended, and rules and regulations
promulgated thereunder.

          “Combined Audited Financial Statements” means the financial statements of the Combined
Companies as of September 30, 2009, prepared in connection with this Agreement and audited by Grant
Thornton LLP.

          “Combined Companies” means both of the Companies on a combined basis for purposes of
preparation of financial statements.

          “Company Benefit Plan” means (i) any “employee welfare benefit plan,” as defined in
Section 3(l) of ERISA, (ii) any “employee pension benefit plan,” as defined in Section 3(2) of
ERISA, (iii) any “multi-employer plan,” as defined in Section 4001(a)(3) of ERISA, and (iv) any
other employee benefit plan, fund, program, agreement, or arrangement, in each case, (A) that is or
was at any time sponsored, administered, or maintained, or required to be sponsored, administered,
or maintained, by either Company or to which either Company makes or has made, or has or has had an
obligation to make, contributions at any time and (B) which provides or at any time provided
benefits to current or former employees of either Company or the dependents of any such employees.

          “Company IP” means all Intellectual Property owned by or filed in the name of the US
Company or the CA Company.

          “Company Product” means a product sold, licensed, or offered for sale or license by
the US Company or the CA Company to a customer, including the Company Software Products.

          “Company Service” means a service as sold, offered for sale or provided by the US
Company or the CA Company to a customer.

          “Company Software Products” means all object code software products offered for
license, licensed, or sublicensed by either Company to a customer, whether included in or with
another Company Product or separately provided to a customer.

          “Contract” means any contract, purchase order, license, lease (including without
limitation Lease), instrument, note, agreement, arrangement, or other binding commitment or
obligation, in each case whether written or oral.

          “Damages” means any loss, liability, damage or reasonable expense incurred as a result
thereof, including, without limitation, reasonable attorneys’, accountants’ and experts’ fees.

          “Deductible” has the meaning set forth in Section 11.2.

-3-

 

          “Disclosure Schedule” has the meaning given to such term in the preamble to
Article III.

          “Dispute Notice” has the meaning set forth in Section 2.4.

          “Documentation” means documentation, specifications, manuals and other user
instructional materials related to Company Products, Company Services and Owned Data Bases.

          “Employee” means any employee of the US Company or the CA Company immediately prior to
the Closing.

          “Encumbrance” means any mortgage, lien, pledge, charge, security interest,
encumbrance, or restriction.

          “Environmental Laws” means all federal, state, provincial, local and foreign statutes,
regulations, ordinances and similar provisions having the force or effect of law, all judicial and
administrative orders and determinations, all contractual obligations and all common law concerning
public health and safety, worker health and safety, and pollution or protection of the environment,
including without limitation all those relating to the presence, use, production, generation,
handling, transportation, treatment, storage, disposal, distribution, labeling, testing,
processing, discharge, release, threatened release, control, or cleanup of any hazardous materials,
substances or wastes, chemical substances or mixtures, pesticides, pollutants, contaminants, toxic
chemicals, petroleum products or byproducts, asbestos, polychlorinated biphenyls or radiation.

          “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

          “ERISA Affiliate” means any Person (whether incorporated or unincorporated) that
together with the US Company would be deemed a “single employer” within the meaning of Section 414
of the Code.

          “ERISA Affiliate Plan” means (i) any “group health plan,” as defined in Section
5000(b)(1) of the Code, (ii) any “employee pension benefit plan,” as defined in Section 3(2) of
ERISA that is subject to Title IV of ERISA, and (iii) any “multi-employer plan,” as defined in
Section 4001(a)(3) of ERISA, sponsored, administered, or maintained, or required to be sponsored,
administered or maintained, at any time by any ERISA Affiliate, or to which such ERISA Affiliate
makes or has made, or has or has had an obligation to make, contributions at any time.

          “Final Net Working Capital” means the Net Working Capital on the Closing Date as
determined pursuant to Section 2.4.

          “Financing Agreement” shall have the meaning set forth in the recitals hereto.

          “Final Order” shall mean an action by any regulatory authority having jurisdiction (i)
with respect to which action no timely request for stay, motion or petition for reconsideration or
rehearing, application or request for review or notice of appeal or other judicial petition for
review is pending and (ii) as to which the time for filing any such request, motion, petition,

-4-

 

application, appeal or notice and for the entry of orders staying, reconsidering or reviewing
on such regulatory authority’s own motion has expired.

          “First Earnout Amount” means $2.5 million, less any amounts set off against such
amount pursuant to Section 11.7 hereof.

          “First Earnout Period” means the period beginning on October 1, 2009 and ending on
September 30, 2010.

          “First Earnout Trigger” has the meaning given to such term in Section 2.5.

          “Foreign Sellers” has the meaning given to such term in Section 4.6.

          “Frey Purchase Agreement” has the meaning given to such term in the recitals to this
Agreement.

          “Frey Shares” has the meaning given to such term in the recitals to this Agreement.

          “GAAP” means generally accepted accounting principles as in effect in the United
States from time to time.

          “Governmental Authority” means (i) any nation, state, province, county, city or other
legal jurisdiction, (ii) any federal, state, provincial, local, municipal, foreign or other
government, (iii) any governmental or quasi-governmental authority of any nature or (iv) any body
exercising executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

          “Guaranteed Stock Amount” means $2.5 million.

          “Hazardous Substance” means any solid, liquid or gaseous substance, chemical,
compound, product, byproduct, waste, pollutant, contaminant or material, including, without
limitation, asbestos in friable form, urea formaldehyde, polychlorinated biphenyls and petroleum
and its refined products, that is subject to regulation, control or remediation by any applicable
Governmental Authority or by any Environmental Law.

          “Indebtedness” means, without duplication, (i) any indebtedness for borrowed money,
(ii) any indebtedness evidenced by a note, bond or debenture, and (iii) any interest, principal,
prepayment penalties, fees or expenses to the extent paid in respect of those items listed in the
foregoing clauses (i) and (ii).

          “Indemnified Party” means a Purchaser Indemnified Party or a Seller Indemnified Party,
as the case may be.

          “Indemnifying Party” means a party that is required to indemnify any Indemnified Party
pursuant to Article XI.

          “Independent Auditor” has the meaning set forth in Section 2.4.

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          “Insurance Policy” has the meaning set forth in Section 3.19.

          “Intellectual Property” means all of the following: (i) patents, patent applications,
patent disclosures, and inventions, as well as any reissues, continuations, continuations-in-part,
divisions, extensions, revisions, or reexaminations thereof; (ii) computer software (including but
not limited to source code, executable code, data, databases and documentation); (iii) trademark
rights, service mark rights and rights to trade names and internet domain names, and registrations
and applications for registration thereof; (iv) copyrights and copyrightable works, and
registrations and applications for registration thereof; (v) trade secrets, inventions, know-how,
and confidential or proprietary information, and (vi) other intellectual property rights.

          “IT Assets” means all of the computer software, computer firmware, computer hardware
and related network hardware, software and communications devices (whether general or specific
purpose), websites and web based content, computer and telecommunications networks, Owned Data
Bases and other similar or related items of automated, computerized, and/or software systems that
used or relied on by either Company in the conduct of its business.

          “Knowledge of the Companies” means the actual knowledge of any Seller who is a natural
person and any individual who is serving as a director, manager, officer or similar executive of
either Company, and what any such individual should have known after a reasonable investigation.

          “Laws” means all laws of any country or any political subdivision thereof, including,
without limitation, all federal, state, provincial, and local statutes, regulations, ordinances,
orders or decrees or any other laws, common law theories or reported decisions of any court
thereof.

          “Leases” means all leases, subleases, licenses and other lease agreements, together
with all amendments, supplements and nondisturbance agreements pertaining thereto, under which
either Company leases, subleases, licenses or uses any real property.

          “Lock-Up Period” has the meaning given to such term in Section 6.14.

          “Material Adverse Effect” means any condition, change, effect or circumstance that,
individually or when taken together with all such conditions, changes effects or circumstances has
or could reasonably be expected to have a material adverse effect on the operations, condition
(financial or otherwise), business, results of operations, assets or liabilities of either Company,
other than any such effect resulting from (i) changes in the United States or Canadian economy in
general, (ii) changes generally affecting the industries in which the Companies operate their
business, (iii) financial, banking, or securities markets (including any disruption thereof and any
decline in the price of any security or any market index), or (iv) the outbreak or escalation of
hostilities, war or acts of terrorism; provided that with respect to clauses (i) through (iv), the
changes or conditions do not have a materially disproportionate effect on the Companies (relative
to other participants in such industries).

          “Material Contract” has the meaning given to such term in Section 3.10.

          “Material Customer” has the meaning given to such term in Section 3.11.

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          “Membership Interests” has the meaning given to such term in the recitals to this
Agreement.

          “Necessary IP Rights” shall have the meaning ascribed in Section 3.16.

          “Net New Subscriptions” for any period means the total number of Units that are newly
sold and deployed by the Companies (including successors and assigns) during such period, less
attrition during such period.

          “Net Working Capital” shall be determined for the Combined Companies in accordance
with the methodology set forth on Exhibit A.

          “Non-Accredited US Seller” means any CA Company Seller that is both (a) a “U.S.
person” as defined in Rule 902(k) of Regulation S under the Securities Act, and (b) not an
“accredited investor” as defined in Rule 501 promulgated under the Securities Act.

          “Non-Compete Period” has the meaning given to such term in Section 6.12.

          “Organizational Documents” means, with respect to a Person: (a) the articles or
certificate of incorporation, formation or organization (as applicable) and the by-laws or similar
governing document of such Person; (b) any limited liability company agreement, partnership
agreement, operating agreement, shareholder agreement, or similar document of or regarding such
Person; (c) any other charter or organizational document adopted or filed in connection with the
incorporation, formation, organization or governance of such Person; or (d) any amendment to any of
the foregoing.

          “Owned Data Bases” shall have the meaning ascribed in Section 3.16.

          “Per Share Price” means $3.00.

          “Permits” means all franchises, permits, licenses, qualifications, municipal and other
authorizations, orders and other rights from, and filings with, any Governmental Authority.

          “Permitted Encumbrances” means (i) statutory liens for Taxes and other charges and
assessments by any Governmental Authority that are not yet due and payable or are being contested
in good faith, (ii) mechanics’, materialmen’s, and similar liens arising or incurred in the
ordinary course of business of the Company that can be satisfied by a payment of cash to the
lienholders, (iii) as to real property interests, including leasehold interests, any easements,
rights-of-way, servitudes, permits, restrictions, and minor imperfections or irregularities in
title that do not, individually or in the aggregate, interfere with the ability to own, use, or
operate such real property, and (iv) notice filings with respect to equipment leases or other
leases of personal property.

          “Person” means any individual, any entity or any unincorporated organization,
including a partnership, a corporation, a limited liability company, an association, a joint stock
company, a trust, or a joint venture.

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          “Personal Information” means any information about an identifiable individual which is
protected by any Privacy Law.

          “Pre-Closing Products” means any product or service offered by a Company prior to the
Closing Date.

          “Pre-Closing Tax Period” has the meaning given to such term in Section 6.7.

          “Privacy Policies” means the practices, policies and procedures of the Companies in
respect of Personal Information.

          “Product Revenue” for any particular period means revenue recognized by the Companies
(including successors and assigns) during such period from the sale, licensing or other commercial
exploitation of any technology, products and software developed by either Company, including but
not limited to: (a) RouteTracker-based product hardware for Units or access-points; (b) licensing
and software that enable third party hardware to operate in place of a RouteTracker; and (c) all
software revenue generated by and related to a Company’s software as a service model including but
not limited to fuel tax, hours of service, TPMobile, TPDispatch, government road analysis and
webservices.

          “Proportionate Interest” with respect to any CA Company Seller means the percentage
set forth opposite such CA Company Seller’s name on Schedule F hereto.

          “Proxy Statement” has the meaning set forth in Section 6.11.

          “Publicly Available Software” has the meaning set forth in Section 3.16.

          “Purchase Price” has the meaning given to such term in Section 2.2.

          “Purchaser” has the meaning given to such term in the preamble hereto.

          “Purchaser Common Stock” has the meaning given to such term in Section 2.3.

          “Purchaser Indemnified Parties” has the meaning given to such term in Section
11.2.

          “Purchaser Shareholder Approval” has the meaning given to such term in Section
6.11.

          “Purchaser Shareholder Meeting” has the meaning given to such term in Section
6.11.

          “Purchaser’s Statement” has the meaning set forth in Section 2.4.

          “Records” has the meaning set forth in Section 6.9.

          “Registered IP” means all unexpired U.S., Canadian, international and foreign (i)
patents and patent applications (including provisional applications and design patents and
applications) and all reissues, divisions, divisionals, renewals, extensions, counterparts,

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continuations and continuations-in-part thereof, and all patents, applications, and filings
claiming priority thereto or serving as a basis for priority thereof, (ii) registered trademarks,
service marks, applications to register trademarks, applications to register service marks,
intent-to-use applications, or other registrations or applications related to trademarks, (iii)
registered copyrights and applications for copyright registration, (iv) domain name registrations
and Internet URL number assignments, and (v) other intellectual property rights that are the
subject of an application, certificate, filing, registration or other document filed or recorded
with, or issued by, any governmental agency, in the case of each of clauses (i)-(v) above, owned
by, under obligation of assignment to, or filed in the name of, either Company.

          “Registration Statement” has the meaning set forth in Section 6.15.

          “Representative” of a party means any officer, director, manager, employee, principal,
member, shareholder or partner of such party or any attorney, accountant or advisor to such party.

          “Review Period” has the meaning set forth in Section 2.4.

          “RouteTracker” means the product currently known as RouteTracker and any other product
which is at any time based upon the technology of either Company.

          “Rule 144” has the meaning set forth in Section 4.5.

          “SEC” means the U. S. Securities and the Exchange Commission.

          “Second Earnout Amount” means $2.5 million.

          “Second Earnout Period” means the period beginning on October 1, 2010 and ending on
September 30, 2011.

          “Second Earnout Trigger” has the meaning set forth in Section 2.5.

          “Securities” means the shares of Purchaser Common Stock issuable to the CA Company
Sellers pursuant hereto.

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

          “Seller Indemnified Parties” has the meaning given to such term in Section
11.2.

          “Seller Parties” means the Companies, the Sellers and the Sellers’ Representative.

          “Sellers” has the meaning given to such term in the preamble hereto and
“Seller” means any of the Sellers.

          “Sellers’ Representative” has the meaning given to such term in the preamble hereto.

          “Shares” has the meaning given to such term in the recitals to this Agreement.

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          “Specified Representations” has the meaning given to such term in Section
11.1.

          “Target Amount” shall mean $100,000.

          “Tax(es)” means all taxes, charges, fees, levies, duties, imposts or other assessments
or charges imposed by and required to be paid to any federal, state, provincial, local or foreign
taxing authority, including, without limitation, income, excise, property (whether real or tangible
personal property), sales, use, transfer, gains, ad valorem, value added, stamp, payroll, windfall,
profits, gross receipts, license, occupation, commercial activity, employment, withholding, social
security, workers’ compensation, unemployment compensation, capital stock and franchise taxes,
alternative or add-on minimum (including any interest, penalties or additions attributable to or
imposed on or with respect to any such assessment) and any estimated payments or estimated taxes.

          “Tax Return” means any return, report, information return or other similar document or
statement (including any related or supporting information) filed or required to be filed with any
Governmental Authority in connection with the determination, assessment or collection of any Tax or
the administration of any Laws, regulations or administrative requirements relating to any Tax,
including, without limitation, any information return, claim for refund, amended return or
declaration of estimated Tax and all federal, state, provincial, local and foreign returns, reports
and similar statements.

          “Third Earnout Amount” means $2.5 million.

          “Third Earnout Period” means the period beginning on October 1, 2011 and ending on
September 30, 2012.

          “Third Earnout Trigger” has the meaning set forth in Section 2.5.

          “Units” means a motor vehicle or trailer which uses any products or software which are
based upon the technology of either Company.

          “US Company” has the meaning given to such term in the preamble hereto.

          “US Company Sellers” has the meaning given to such term in the preamble hereto.

          “Working Capital Taxes” means state sales, use, property and business Taxes,
(including excise and franchise Taxes), but excluding state or federal Taxes measured by income
incurred by a Company in the ordinary course of business and consistent with past practice
(including by type and amount) that are not due and payable as of the Closing Date.

          1.2 Interpretation. In this Agreement, unless otherwise specified or where the
context otherwise requires:

               (a) language shall be construed simply according to its fair meaning and not strictly for or
against any party;

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               (b) the headings of particular provisions of this Agreement are inserted for convenience only
and will not be construed as a part of this Agreement or serve as a limitation or expansion on the
scope of any term or provision of this Agreement;

               (c) words importing any gender shall include other genders;

               (d) words importing the singular only shall include the plural and vice versa;

               (e) the words “include,” “includes” or “including” shall be deemed to be followed by the words
“without limitation;”

               (f) the words “hereby,” “hereof,” “herein” and “herewith” and words of similar import shall,
unless otherwise stated, be construed to refer to this Agreement as a whole and not to any
particular provision of this Agreement;

               (g) references to “Article,” “Section” or “Schedule” shall be to an Article, Section or
Schedule of or to this Agreement;

               (h) references to any Person include the successors and permitted assigns of such Person;

               (i) any definition of or reference to any Law, agreement, instrument or other document herein
will be construed as referring to such Law, agreement, instrument or other document as from time to
time amended, supplemented or otherwise modified;

               (j) any definition of or reference to any statute will be construed as referring also to any
rules and regulations promulgated thereunder;

               (k) references to “dollars” and “$” shall, unless otherwise stated, refer to U.S. dollars.

ARTICLE II

PURCHASE AND SALE

          2.1 Purchase of the Shares and Membership Interests. On the terms and subject to the
conditions of this Agreement, at the Closing:

               (a) each CA Company Seller shall sell, assign and deliver the number and type of Shares set
forth opposite such CA Company Seller’s name on Schedule A attached hereto to Purchaser,
and Purchaser shall purchase and acquire such Shares from such CA Company Seller; and

               (b) each US Company Seller shall sell, assign and deliver the Membership Interests set forth
opposite such US Company Seller’s name on Schedule B attached hereto to Purchaser, and
Purchaser shall purchase and acquire such Membership Interests from such US Company Seller.

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          2.2 Purchase Price.

               (a) The aggregate purchase price for the Shares (the “Purchase Price”) shall be equal
to the Closing Cash Amount, plus the Guaranteed Stock Amount, plus the First Earnout Amount (if
required to be paid pursuant hereto), plus the Second Earnout Amount (if required to be paid
pursuant hereto), plus the Third Earnout Amount (if required to be paid pursuant hereto), subject
to adjustment pursuant to Section 2.4.

               (b) The aggregate purchase price for the Membership Interests shall equal one dollar ($1).

          2.3 Closing and Guaranteed Payments.

               (a) The Closing Cash Amount shall be withheld and paid by Purchaser at Closing as follows:

                    (i) Purchaser shall withhold $424,252.26 with respect to the Indebtedness set forth on
Exhibit B hereto;

                    (ii) Purchaser shall withhold the settlement amount set forth on Exhibit C hereto,
such amount to be paid on behalf of the Companies in settlement of the matter set forth on such
exhibit; and

                    (iii) An amount equal to the Closing Cash Amount, less the amounts withheld under Sections
2.3(a)(i) and 2.3(a)(ii), shall be paid at the Closing by Purchaser by wire transfer of
immediately available funds to such account as the Sellers’ Representative designates in writing
prior to the Closing, for allocation among the CA Company Sellers in accordance with Schedule
G.

               (b) Subject to Section 2.6 and Section 2.7, Purchaser shall pay the Guaranteed
Stock Amount promptly, and in any event within 10 Business Days, after the Purchaser Shareholder
Approval has been obtained, by issuing to each CA Company Seller a number of unregistered,
restricted shares of Purchaser common stock, $.01 par value (“Purchaser Common Stock”),
equal to such CA Company Seller’s Proportionate Interest multiplied by the Guaranteed Stock Amount,
divided by the Per Share Price. The number of shares issued to each CA Company Seller pursuant to
this Section 2.3(b) shall be rounded down to the nearest whole share.

          2.4 Purchase Price Adjustment.

               (a) Statement of Net Working Capital. No later than 60 days following the Closing
Date, the Purchaser shall prepare and deliver to the Sellers’ Representative a statement of the Net
Working Capital of the Combined Companies as of the close of business on the Closing Date
(“Purchaser’s Statement”), together with reasonable backup documentation to support the
line items included therein. The Sellers’ Representative shall have a period of thirty (30) days
from the receipt of Purchaser’s Statement (the “Review Period”) to review the Purchaser’s
Statement and the Sellers’ Representative shall deliver to the Purchaser, prior to the expiration
of the Review Period, either (i) a written notice of disagreement (a “Dispute Notice”)

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with respect to any dispute relating to the Purchaser’s Statement, specifying in reasonable
detail the nature and amount of such disagreement and including the Sellers’ determination of the
Net Working Capital as of the Closing Date or (ii) a written statement accepting Purchaser’s
Statement (an “Acceptance Notice”), in which case Purchaser’s Statement shall be final and
binding, effective as of the date on which the Purchaser receives the Acceptance Notice. If the
Sellers’ Representative does not deliver a Dispute Notice or an Acceptance Notice within the Review
Period, then Purchaser’s Statement shall be final and binding, effective as of the first Business
Day after the expiration of the Review Period.

               (b) Resolution of Disputes. If the Sellers’ Representative delivers a Dispute Notice
to the Purchaser prior to the expiration of the Review Period, then Purchaser and the Sellers’
Representative shall attempt in good faith to resolve such dispute within fifteen (15) days from
the date of the Dispute Notice (or such longer period as such parties may mutually agree). If the
Purchaser and the Sellers’ Representative cannot reach agreement within such fifteen (15) day
period (or such longer period as they may mutually agree), then the Purchaser and the Sellers’
Representative shall promptly refer the specific items in dispute to McGladrey & Pullen, LLP (the
“Independent Auditor”) for binding resolution. The Independent Auditor shall work to
resolve such dispute promptly and, to the extent practicable, within thirty (30) days from the date
the dispute is submitted to the Independent Auditor. The Independent Auditor shall act based
solely on the presentations of the Purchaser and the Sellers’ Representative and not by independent
review unless, in the opinion of the Independent Auditor, independent review is reasonably
necessary under the circumstances. Any item not specifically referred to the Independent Auditor
for evaluation shall be deemed final and binding on the parties. The Independent Auditor shall
deliver to the Purchaser and the Sellers’ Representative a written opinion setting forth the final
determination of the Net Working Capital as of the Closing Date calculated in accordance with the
provisions of this Agreement. The determination of the Independent Auditor shall be final and
binding, effective as of the date the Independent Auditor’s written opinion is received by the
Purchaser and the Sellers’ Representative. The fees, costs and expenses of the Independent Auditor
shall be borne 50% by the Purchaser and 50% by the Sellers’ Representative on behalf of the
Sellers.

               (c) Final Settlement. If the Final Net Working Capital is less than the Target
Amount, the Sellers’ Representative shall, on behalf of the Sellers, within five (5) Business Days
from the effective date of such final determination, pay to the Purchaser the amount of such
difference, such payment to be made by wire transfer of immediately available funds to such bank
account as the Purchaser may designate (or in the absence of any such designation, by corporate
check mailed to the Purchaser). If the Final Net Working Capital is greater than the Target
Amount, the Purchaser shall, within five (5) Business Days from the date of such final
determination, pay to the Sellers’ Representative the amount of such difference, such payment to be
made by wire transfer of immediately available funds to such bank account(s) as the Sellers’
Representative may designate, for pro rata distribution among the CA Company Sellers based on their
respective Proportionate Interests.

               (d) Any payments made pursuant to this Section 2.4 shall be consistently treated as
adjustments to the Purchase Price.

          2.5 Earnout Payments.

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               (a) The First Earnout Amount shall only become due and payable to the CA Company Sellers if
both of the following conditions are met with respect to the First Earnout Period (the “First
Earnout Trigger”):

                    (i) Product Revenue is at least $7.9 million; and

                    (ii) Net New Subscriptions is at least 10,875.

               (b) The Second Earnout Amount shall only become due and payable to the CA Company Sellers if
both of the following conditions are met with respect to the Second Earnout Period (the “Second
Earnout Trigger”):

                    (i) Product Revenue is at least $11.9 million; and

                    (ii) Net New Subscriptions is at least 13,100.

               (c) The Third Earnout Amount shall only become due and payable to the CA Company Sellers if
both of the following conditions are met with respect to the Third Earnout Period (the “Third
Earnout Trigger”):

                    (i) Product Revenue is at least $16.8 million; and

                    (ii) Net New Subscriptions is at least 16,602.

               (d) Subject to Section 2.6 and Section 2.7, within 30 days following the date
on which Purchaser’s delivery of the Earnout Notice for the First Earnout Period is due under
Section 2.5(g), if the First Earnout Trigger has been met, Purchaser shall pay the First
Earnout Amount by issuing to each CA Company Seller a number of shares of Purchaser Common Stock
equal to such CA Company Seller’s Proportionate Interest multiplied by the First Earnout Amount,
divided by the Per Share Price. The number of shares issued to each CA Company Seller pursuant to
this Section 2.5(d) shall be rounded down to the nearest whole share.

               (e) Subject to Section 2.6 and Section 2.7, within 30 days following the date
on which Purchaser’s delivery of the Earnout Notice for the Second Earnout Period is due under
Section 2.5(g), if the Second Earnout Trigger has been met, Purchaser shall pay the Second
Earnout Amount by issuing to each CA Company Seller a number of shares of Purchaser Common Stock
equal to such CA Company Seller’s Proportionate Interest multiplied by the Second Earnout Amount,
divided by the Per Share Price. The number of shares issued to each CA Company Seller pursuant to
this Section 2.5(e) shall be rounded down to the nearest whole share.

               (f) Subject to Section 2.6 and Section 2.7, within 30 days following the date
on which Purchaser’s delivery of the Earnout Notice for the Third Earnout Period is due under
Section 2.5(g), if the Third Earnout Trigger has been met, Purchaser shall pay the Third
Earnout Amount by issuing to each CA Company Seller a number of shares of Purchaser Common Stock
equal to such CA Company Seller’s Proportionate Interest multiplied by the

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Third Earnout Amount, divided by the Per Share Price. The number of shares issued to each CA
Company Seller pursuant to this Section 2.5(f) shall be rounded down to the nearest whole
share.

               (g) As soon as reasonably practicable, but in any event not more than 60 days after the end of
each Earnout Period, Purchaser shall determine the amount of Product Revenue and Net New
Subscriptions for such Earnout Period, and deliver written notice thereof which provides the
particulars of such determination (each, an “Earnout Notice”) to the Sellers’
Representative, along with a statement signed by an officer of Purchaser as to whether the Earnout
Trigger for such Earnout Period has been met. If so requested by the Sellers’ Representative,
Purchaser shall consult with the Sellers’ Representative regarding such determination before the
Earnout Notice is delivered and provide the Sellers’ Representative with reasonable access to all
relevant information in connection therewith.

               (h) From the Closing Date until September 30, 2013, Purchaser agrees to prepare and preserve
all books and records necessary for the determination of whether an Earnout Payment is due with
respect to each Earnout Period (the “Earnout Records”). The Earnout Records shall be
prepared in accordance with US GAAP, consistently applied. Purchaser shall permit Sellers’
Representative (or a person appointed by Sellers’ Representative), during the period that Purchaser
is required to preserve books and records as set forth above, upon seven days prior written notice
and during Purchaser’s regular business hours, to review and copy at Purchaser’s corporate offices,
or another mutually acceptable location, all necessary accounting records and all work papers used
by Purchaser in the preparation of the Earnout Records.

               (i) It is agreed that in some cases the Purchaser will sell products or software that generate
Product Revenue from a customer (“Turnpike Products or Software”) and to the same customer
sell products or software which are not Turnpike Products or Software (“XATA Products or
Software”). It is agreed that in any such event pricing shall be allocated fairly;
accordingly, it is further agreed that if a situation occurs that results in a discount being given
to a customer in a transaction that includes both Turnpike Products or Software and XATA Products
or Software, for purposes of determining Product Revenue such discount will be allocated between
the Purchaser and the Companies pro rata in accordance with their respective portions of the
transaction’s value.

               (j) The Sellers acknowledge and agree that (i) their sole and exclusive right under this
Section 2.5 will be to receive the First Earnout Amount, Second Earnout Amount, and/or
Third Earnout Amount, in each case if required by this Section 2.5, (ii) Purchaser will
have the right to operate the Companies as it chooses, in its sole discretion, (iii) Purchaser is
not under any obligation to provide any specific level of investment or financial assistance to the
Companies or to undertake any specific actions (or to refrain from taking any specific actions)
with respect to the operation of the Companies, (iv) Purchaser is not representing or warranting
that any specific level of performance will be achieved or sought, and (v) Sellers will not have
any claims against Purchaser arising from the failure of the Companies to achieve for any reason
the First Earnout Trigger, Second Earnout Trigger, Third Earnout Trigger, or any other specific
level of performance, so long as Purchaser acts in good faith.

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          2.6 Non-Accredited US Sellers. Notwithstanding anything herein to the contrary, no
shares of Purchaser Common Stock shall be issued pursuant to this Agreement to any Non-Accredited
US Seller. At any time when shares of Purchaser Common Stock would, but for the terms of this
Section 2.6, be required to be issued to a Non-Accredited US Seller pursuant to this
Agreement, the Purchaser shall instead pay cash to such Non-Accredited US Seller in an amount equal
to (i) the number of shares of Purchaser Common Stock that would have otherwise been issuable to
such Non-Accredited US Seller, multiplied by (ii) the Per Share Price. Any such cash amounts to be
paid by Purchaser shall be aggregated and paid by wire transfer of immediately available funds to
such account as the Sellers’ Representative designates in writing, for appropriate allocation among
the Non-Accredited US Sellers.

          2.7 Shareholder Approval.

               (a) Notwithstanding anything herein to the contrary, no shares of Purchaser Common Stock shall
be issued pursuant to this Agreement unless the Purchaser Shareholder Approval has been obtained.
The Purchaser shall use commercially reasonable best efforts to obtain the Purchaser Shareholder
Approval.

               (b) If the Purchaser Shareholder Approval has not been obtained on or prior to the six-month
anniversary of the Closing Date, then an amount in cash equal to the Guaranteed Stock Amount shall
promptly be paid by Purchaser by wire transfer of immediately available funds to such account as
the Sellers’ Representative designates in writing, for allocation among the CA Company Sellers pro
rata in accordance with their Proportionate Interests, and Purchaser shall have no obligation to
pay the Guaranteed Stock Amount in shares of Purchaser Common Stock.

               (c) If the Purchaser Shareholder Approval has not been obtained on or prior to the time that
an Earnout Payment becomes due and payable pursuant to Section 2.5, then an amount in cash
equal to such Earnout Payment shall promptly be paid by Purchaser by wire transfer of immediately
available funds to such account as the Sellers’ Representative designates in writing, for
allocation among the CA Company Sellers pro rata in accordance with their Proportionate Interests,
and Purchaser shall have no obligation to pay such Earnout Amount in shares of Purchaser Common
Stock.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE SELLERS AS TO THE COMPANIES

          The Sellers, jointly and severally, represent and warrant to Purchaser as follows, subject to
the exceptions set forth in the disclosure schedule attached hereto, which is numbered to
correspond to the sections qualified by the disclosures thereon (the “Disclosure
Schedule”).

          3.1 Organization and Authorization.

               (a) The CA Company is a corporation, duly organized, validly existing and in good standing
under the Laws of the Province of Ontario and has all requisite corporate power and authority to
(i) own, lease, and operate its properties and assets and to carry on its business as presently
conducted and (ii) enter into this Agreement and the Ancillary Documents, perform its obligations
hereunder and thereunder, and consummate the transactions contemplated

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hereby and thereby. The CA Company is qualified to do business in each jurisdiction in which
the conduct of its business or ownership of its properties and assets make such qualification
necessary, except for such jurisdictions in which the failure to be so qualified can be cured
without material expense and will not render unenforceable any Contract to which the CA Company is
a party or by which the CA Company or its assets is bound.

               (b) The US Company is a limited liability company, duly organized, validly existing and in
good standing under the Laws of the State of Delaware and has all requisite company power and
authority to (i) own, lease, and operate its properties and assets and to carry on its business as
presently conducted and (ii) enter into this Agreement and the Ancillary Documents, perform its
obligations hereunder and thereunder, and consummate the transactions contemplated hereby and
thereby. The US Company is qualified to do business in each jurisdiction in which the conduct of
its business or ownership of its properties and assets make such qualification necessary, except
for such jurisdictions in which the failure to be so qualified can be cured without material
expense and will not render unenforceable any Contract to which the US Company is a party or by
which the US Company or its assets is bound.

          3.2 Due Execution and Delivery; Binding Obligations.

               (a) The execution, delivery and performance of this Agreement and the Ancillary Documents by
the CA Company has been duly authorized by all necessary action on the part of the CA Company.
This Agreement has been, and at the Closing the Ancillary Documents will be, duly executed and
delivered by the CA Company, and this Agreement constitutes, and each Ancillary Document will
constitute when executed, a legal, valid and binding agreement of the CA Company, enforceable
against it in accordance with its terms, except as such enforcement may be limited by bankruptcy,
insolvency, reorganization, arrangement, moratorium or other Laws relating to or limiting
creditors’ rights generally or by equitable principles relating to enforceability.

               (b) The execution, delivery and performance of this Agreement and the Ancillary Documents by
the US Company has been duly authorized by all necessary action on the part of the US Company.
This Agreement has been, and at the Closing the Ancillary Documents will be, duly executed and
delivered by the US Company, and this Agreement constitutes, and each Ancillary Document will
constitute when executed, a legal, valid and binding agreement of the US Company, enforceable
against it in accordance with its terms, except as such enforcement may be limited by bankruptcy,
insolvency, reorganization, arrangement, moratorium or other Laws relating to or limiting
creditors’ rights generally or by equitable principles relating to enforceability.

          3.3 Capitalization.

               (a) The authorized capital stock of the CA Company consists of an unlimited number of shares
of common stock, no par value, of which 1,362,307 shares are issued and outstanding (such issued
and outstanding shares, the “CA Company Common Stock”), an unlimited number of shares of
class A preferred stock, no par value, of which 27,000 shares are issued and outstanding (such
issued and outstanding shares, the “CA Company Preferred Stock”), and an unlimited number
of shares of preference stock, no par value, of which zero

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shares are issued and outstanding. The CA Company Common Stock and the CA Company Preferred
Stock together constitute the Shares. The Shares are duly and validly authorized, issued and
outstanding, fully paid and non-assessable. No equity interest in the CA Company was issued in
violation of any Organizational Document of the CA Company, any Law, or any preemptive right (or
other similar right) of any Person. There are no: (1) outstanding subscriptions, options,
warrants, put or call rights, preemptive rights, purchaser rights, subscription rights, conversion
rights, exchange right or other securities, agreements or commitments of any nature, whether legal
or equitable, and whether written or oral, whereby any Person has, or has a right to receive, any
economic, voting, ownership or any other type of interest, equity or security in the CA Company;
(2) agreements or commitments of any nature, whether legal or equitable, and whether written or
oral, obligating the CA Company or any other Person to transfer, sell, purchase, redeem or
otherwise acquire any securities of the CA Company; (3) equity appreciation, phantom stock, profit
participation or similar right with respect to the CA Company or any agreement or commitment of any
nature to establish the same, whether legal or equitable, and whether written or oral; or (4)
except as set forth on Section 3.3(a) of the Disclosure Schedule, voting trust, proxy or
other Contract with respect to any equity or voting interest in the CA Company. True and correct
copies of the CA Company’s Organizational Documents have been made available to Purchaser.

               (b) The authorized capitalization of the US Company consists solely of the Membership
Interests, and there are no other outstanding ownership interests of any kind with respect to the
US Company. The Membership Interests are duly and validly authorized, issued and outstanding,
fully paid and non-assessable. No equity interest in the US Company was issued in violation of any
Organizational Document of the US Company, any Law, or any preemptive right (or other similar
right) of any Person. There are no: (1) outstanding subscriptions, options, warrants, put or call
rights, preemptive rights, purchaser rights, subscription rights, conversion rights, exchange right
or other securities, agreements or commitments of any nature, whether legal or equitable, and
whether written or oral, whereby any Person has, or has a right to receive, any economic, voting,
ownership or any other type of interest, equity or security in the US Company; (2) agreements or
commitments of any nature, whether legal or equitable, and whether written or oral, obligating the
US Company or any other Person to transfer, sell, purchase, redeem or otherwise acquire any
securities of the US Company; (3) equity appreciation, phantom stock, profit participation or
similar right with respect to the US Company or any agreement or commitment of any nature to
establish the same, whether legal or equitable, and whether written or oral; or (4) voting trust,
proxy or other Contract with respect to any equity or voting interest in the US Company, other than
the US Company’s Limited Liability Company Agreement dated as of February 23, 2006, which shall be
terminated immediately prior to Closing. True and correct copies of the US Company’s
Organizational Documents have been made available to Purchaser.

               (c) Neither Company owns, directly or indirectly, any voting securities or other equity
interests in, or has the right to control, any other Person.

               (d) Turnpike Holdings, Inc., a Delaware corporation, has no interest in, title to, or right
with respect to any asset or property of any kind other than the Membership Interests set forth
opposite its name on Schedule B attached hereto. Turnpike Global Holdings Inc., an Ontario
corporation, has no interest in, title to, or right with respect to any asset or

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property of any kind other than the shares of capital stock of Turnpike Holdings, Inc. held
by it, which shares constitute all of the issued and outstanding shares of capital stock of
Turnpike Holdings, Inc.

          3.4 No Conflict or Violation. Except as set forth on Section 3.4 of the
Disclosure Schedule, neither the execution and delivery of this Agreement by the US Company or
the CA Company nor the consummation of the transactions contemplated hereby will result in (i) a
breach or violation of, a conflict with, or create a right or obligation under, the Organizational
Documents of either Company, (ii) a violation by either Company of any applicable Law, (iii) a
breach or violation by either Company of or default under any order, judgment, writ, injunction
decree or award to which either Company is a party or by which either Company is bound, or (iv) a
breach, violation of or a default under, conflict with or give rise to or create any right of any
Person to accelerate, increase, terminate, modify or cancel any right or obligation in a manner
adverse to either Company or result in the creation of any Encumbrance, other than a Permitted
Encumbrance, under, any Contract to which any Seller or either Company is a party or by which any
asset of either Company is bound. Except as set forth on Section 3.4 of the Disclosure
Schedule, no consents, Permits, approvals or authorizations of, or notices, declarations,
filings, applications, transfers or registrations with, any Governmental Authority or any other
Person are required to be made or obtained by either Company by virtue of, or in order to permit,
the execution, delivery or performance of this Agreement by either Company or the consummation of
the transactions contemplated hereby by either Company.

          3.5 Legal Proceedings, Orders and Judgments. Except as set forth on Section 3.5
of the Disclosure Schedule, there is no action, claim, suit, complaint, investigation,
arbitration, hearing, or other proceeding pending, or to the Knowledge of the Companies, threatened
against either Company, or any of such Company’s properties or assets, or to which either Company
is a party. Neither Company, nor any of the assets or properties of either Company, is subject to
any order, judgment, injunction, writ, indictment or information, grand jury subpoena or civil
investigative demand, plea agreement, stipulation, decree or award (whether rendered by a court,
commission, arbitration tribunal, or judicial, governmental or administrative department, body,
agency, administrator or official, grand jury or any other forum for the resolution of grievances).

          3.6 Compliance with Law. At all times since their respective formation or
incorporation, as applicable, the Companies have been operated in compliance in all material
respects with all applicable Laws. Neither Company has received any notice from any Governmental
Authority claiming any material violation of or material non-compliance with any Law. Each Company
possesses and is in compliance in all material respects with each Permit necessary for such Company
to own, operate and use its assets and conduct its business.

          3.7 Financial Statements.

               (a) Purchaser has been provided with a true, correct and complete copy of the Combined Audited
Financial Statements of the Combined Companies for the fiscal year ended September 30, 2009,
including the notes thereto. The Combined Audited Financial Statements have been prepared in
accordance with US GAAP consistently applied during the respective periods covered thereby. The
Combined Audited Financial Statements are true and

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correct in all material respects and fairly present in all material respects the financial
condition of the Combined Companies as of the dates thereof and the results of operations of the
Combined Companies for the periods covered thereby.

               (b) The financial records of each Company, all of which have been made available to Purchaser,
are true, correct and complete in all material respects, represent actual, bona fide transactions,
and have been maintained in accordance with sound business practices, including the maintenance of
an adequate system of internal controls.

          3.8 Absence of Undisclosed Liabilities. Neither Company has any liabilities or
obligations (whether absolute or contingent) except for liabilities and obligations (i) reflected
or reserved for on the most recent balance sheet included in the Combined Audited Financial
Statements or disclosed in the notes to the Combined Audited Financial Statements; (ii) that have
arisen since the date of such balance sheet in the ordinary course of business consistent with past
practice, which are not in the aggregate material, and which do not arise out of, relate to or
result from, and which are not in the nature of and were not caused by, any breach of contract,
breach of warranty, tort, infringement or violation of applicable Law; or (iii) liabilities,
commitments or obligations to the extent expressly disclosed in the Disclosure Schedule.

          3.9 Absence of Changes. Since September 30, 2009, (i) each Company has operated its
business in the ordinary course, consistent with past practice, (ii) no change or event has
occurred that, individually or in the aggregate, has had or would reasonably be anticipated to have
a Material Adverse Effect, (iii) no material asset or property of either Company has been
destroyed, damaged or otherwise lost (whether or not covered by insurance); and (iv) neither
Company has:

               (a) sold, transferred, disposed of, or agreed to sell, transfer, or dispose of, any material
assets other than sales of inventory in the ordinary course of business consistent with past
practice;

               (b) acquired any material assets other than purchases of inventory in the ordinary course of
business consistent with past practice, nor acquired or merged with any other Person;

               (c) changed any financial or Tax accounting practice, policy or method (except with respect to
the New York sales and use tax);

               (d) made any loan, advance or capital contributions to or investment in any Person;

               (e) made any capital expenditure (or series of related capital expenditures) involving more
than $50,000 or outside the ordinary course of business consistent with past practice;

               (f) (1) incurred any Indebtedness or entered into any guaranty of such Indebtedness, or (2)
become subject to any material liabilities, except liabilities incurred in the ordinary course of
business consistent with past practice;

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               (g) canceled or forgiven any material debts or claims or redeemed or repaid any Indebtedness
outside of the ordinary course of business consistent with past practice;

               (h) delayed or postponed the payment of any accounts payable or other liabilities outside the
ordinary course of business consistent with past practice;

               (i) except as set forth on Section 3.9(i) of the Disclosure Schedule, subjected any of
its material assets to any Encumbrance, other than any Permitted Encumbrance;

               (j) (1) become a guarantor with respect to any obligation of any other Person, (2) assumed or
otherwise become obligated for any obligation of another Person for borrowed money, or (3) agreed
to maintain the financial condition of any other Person;

               (k) (1) except in the ordinary course of business consistent with past practices, entered into
any material Contract, or amended in any material fashion or terminated any material Contract to
which such Company is or was a party or by which such Company’s assets are or were bound, or (2)
waived, released or assigned any right or claim under any such material Contract;

               (l) (1) failed to prepare and timely file all Tax Returns relating to such Company required to
be filed by it during such period or timely withhold and remit any employment Taxes applicable to
such Company, (2) filed any amended Tax Return, (3) made or changed any election with respect to
Taxes, or (4) settled or compromised any Tax liability, entered into any Tax closing agreement,
surrendered any right to claim a refund of Taxes, consented to any extension or waiver of the
limitation period applicable to any Tax claim or assessment or took any other similar action
relating to any Tax;

               (m) failed to preserve and prevent any material degradation in such Company’s relationship
with any of its suppliers, customers, or others having material business relations with such
Company;

               (n) except as set forth on Section 3.9(n) of the Disclosure Schedule, (1) adopted,
entered into, amended or terminated any bonus, profit-sharing, compensation, severance,
termination, pension, retirement, deferred compensation or other employee benefit plan, agreement,
trust, fund or other arrangement for the benefit or welfare of any individual, (2) entered into or
amended any employment arrangement or relationship with any new or existing employee that had or
will have the legal effect of any relationship other than at-will employment or other employment
relationship implied by applicable law, (3) increased the compensation or any fringe benefit of any
director, manager, officer or employee or paid any benefit to any director, manager, officer or
employee, other than pursuant to a then-existing plan or arrangement and in amounts consistent with
past practice, or (4) granted any award to any director, manager, officer or employee under any
bonus, incentive, performance or other compensation plan or arrangement (including the removal of
any existing restriction in any benefit plan or agreement or award made thereunder);

               (o) amended such Company’s Organizational Documents;

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               (p) declared, set aside or paid any dividend or made any distribution with respect to its
capital stock or membership interests (whether in cash or in kind) or redeemed, purchased or
otherwise acquired any of its capital stock;

               (q) authorized or issued any shares of capital stock or membership interests, or any
subscription, option, warrant, call right, preemptive right or other agreement or commitment
obligating such Company to issue, sell, deliver or transfer (including any rights of conversion or
exchange under any outstanding security or other instrument) any economic, voting, ownership or any
other type of interest or security in such Company; or

               (r) entered into any Contract, or agreed or committed (binding or otherwise), to do any of the
foregoing.

          3.10 Material Contracts.

               (a) Section 3.10 of the Disclosure Schedule lists each of the following Contracts to
which either Company is a party or by which any properties or assets of either Company are bound
(each such Contract, a “Material Contract”):

                    (i) each Contract involving the borrowing of money by, or any extension of credit to,
either Company (including any loan agreement, promissory note, guarantee, letter of credit or
similar Contract);

                    (ii) each Contract (or group of related Contracts) pursuant to which either Company is
committed to make payments in excess of $25,000;

                    (iii) each Contract to sell, lease or otherwise dispose of any material assets or
properties, either individually or in the aggregage, of either Company other than sales of
inventory in the ordinary course of business consistent with past practice;

                    (iv) each Contract with a Material Customer;

                    (v) each joint venture, partnership, or similar Contract;

                    (vi) each Contract in the nature of or including a non-competition, non-solicitation or
confidentiality agreement;

                    (vii) each employment or severance Contract;

                    (viii) each collective bargaining Contract;

                    (ix) each material Contract to pay or receive any royalty or license fee or to license
(either as licensor or licensee) any Intellectual Property (other than any non-exclusive
license for the use of any commercially available off-the-shelf software which was entered into
in the ordinary course of business);

                    (x) each Contract with any distributor or broker of products or services offered by either
Company;

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                    (xi) each Contract containing any form of most-favored pricing provision in favor of any
customer of either Company; or

                    (xii) each other material Contract not entered into in the ordinary course of business of
the Company.

               (b) The Companies have delivered to Purchaser true, correct and complete copies of each
Material Contract. Each Material Contract is valid, binding and enforceable against the Company
that is a party thereto and, to the Knowledge of the Companies, each other party thereto in
accordance with its terms, except that such enforcement may be subject to (i) bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer or other Laws, now or hereafter in
effect, relating to or limiting creditors’ rights generally, and (ii) general principles of equity.
To the Knowledge of the Companies, no event has occurred that (with or without the passage of time
or giving of notice) would constitute a material breach or default of, or permit termination,
modification, acceleration or cancellation of, any Material Contract or of any material right or
liability under any Material Contract. Except as set forth on Section 3.10 of the Disclosure
Schedule, neither Company is in material breach of any Material Contract, and no breach will
occur as a result of the execution of this Agreement or the consummation of the transactions
contemplated hereby. To the Knowledge of the Companies, none of the other parties to any Material
Contract is in material breach thereof.

          3.11 Material Customers. Section 3.11 of the Disclosure Schedule contains a
true and complete list of each customer, or related group of customers, of the Companies (listing
dollar amount of sales for each) that accounted for sales by the Companies in excess of $15,000 for
the 12-month period ended on the date hereof (each, a “Material Customer”). As of the date
hereof, except as set forth on Section 3.11 of the Disclosure Schedule, no customer of
either Company has informed either Company, and to the Knowledge of the Companies there are no
circumstances indicating, that such customer intends to cease doing business with such Company or
to terminate or materially decrease its business with such Company. To the Knowledge of the
Companies, the consummation of the transactions contemplated hereby will not adversely affect in
any material manner either Company’s business relationship with any customer.

          3.12 Real Property. Neither Company owns (or has owned) any real property.
Section 3.12 of the Disclosure Schedule sets forth a complete list of all Leases. The real
property subject to the Leases constitutes all of the real property interests which are leased,
licensed, used or occupied (or that have ever been leased, licensed, used or occupied) in whole or
in part by either Company in connection with its business. Each Lease is valid, binding and
enforceable against the Company that is a party thereto in accordance with its terms, except that
such enforcement may be subject to (i) bankruptcy, insolvency, reorganization, moratorium,
fraudulent transfer or other Laws, now or hereafter in effect, relating to or limiting creditors’
rights generally, and (ii) general principles of equity. To the Knowledge of the Companies, no
event has occurred that (with or without the passage of time or giving of notice) would constitute
a material breach or default of, or permit termination, modification, acceleration or cancellation
of, any Lease or of any material right or liability under any Lease. Neither Company is in
material breach of any Lease, and, to the Knowledge of the Companies, none of the other parties to
any Lease is in material breach thereof. The Companies have provided to Purchaser true, complete
and correct copies of each of the Leases. Neither Company has executed or given any estoppel

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certificates or similar instruments to any mortgagee or other third party that would preclude
assertion of any claim by the tenant under any Lease, affect any of the tenant’s rights or
obligations under such Lease or otherwise be binding upon any successor to such Company’s position
under such Lease. Neither Company has contested, or is currently contesting, any operating costs,
real estate taxes or assessments or other charges payable by the tenant under any Lease. Except
for the Leases, there are no leases, subleases or occupancy agreements in effect with respect to
the real property affected by such Leases. There are no pending or, to the Knowledge of the
Companies, threatened or contemplated actions or proceedings regarding condemnation or other
eminent domain actions or proceedings affecting the real property covered by any Lease or any part
thereof, or of any sale or other disposition of such real property or any part thereof in lieu of
condemnation.

          3.13 Tangible Property. Except as set forth on Section 3.13 of the Disclosure
Schedule, each Company has good and marketable title to, or a valid leasehold interest in, all
equipment, furniture and other tangible assets used in the ordinary course, or necessary for the
conduct, of its business and operations, free and clear of any Encumbrances other than Permitted
Encumbrances. All of the tangible assets, owned or leased by either Company are in good working
order, ordinary wear and tear excepted, are free from any material defects, have been maintained in
accordance with applicable industry standards, and are suitable for the purposes for which they are
being used.

          3.14 Taxes.

               (a) Each Company has timely filed all Tax Returns that it was required to file. All such Tax
Returns were correct and complete in all material respects and were prepared in material compliance
with all applicable Laws. All Taxes due and owing by each Company have been paid or are properly
accrued for on the books of such Company whether or not shown as due on any return, and the Working
Capital Taxes will be reflected as a current liability as part of the adjustment to the Purchase
Price under Section 2.4. Neither Company is the beneficiary of any extension of time
within which to file any Tax Return. No claim has ever been made by a Governmental Authority in a
jurisdiction where either Company does not file Tax Returns that such Company is or may be subject
to taxation by such jurisdiction. There are no liens for Taxes (other than Taxes not yet due and
payable or contested in good faith) upon any asset of either Company.

               (b) Each Company has withheld and paid all Taxes required to have been withheld and paid by it
in connection with any amount paid or owing to any employee, independent contractor, creditor,
stockholder, or other Person.

               (c) No Governmental Authority has any reasonable basis to assess any additional Taxes with
respect to either Company for any period for which a Tax Return has been filed. No Tax audit or
Tax proceeding is pending or being conducted or, to the Knowledge of the Companies, is threatened
by or under the authority of any Governmental Authority with respect to either Company. Neither
Company has received from any Governmental Authority (including in any jurisdiction where such
Company has not filed any Tax Return) any (1) notice indicating an intent to open an audit or other
proceeding, (2) request for information related to Tax matters, or (3) notice of deficiency or
proposed adjustment for any amount of Tax proposed, asserted, or

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assessed by any Governmental Authority against such Company. Sellers have delivered to
Purchaser correct and complete copies of each Tax Return, examination report, and statement of
deficiency assessed against or agreed to by either Company that was filed or received since January
1, 2005.

               (d) Neither Company 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 Company is a party to any Contract or other arrangement or plan that has resulted
or could result, separately or in the aggregate, in the payment of any “excess parachute payment”
within the meaning of section 280G of the Code (or any similar provision of applicable state,
local, or foreign law). Neither Company has been a United States real property holding corporation
within the meaning of Section 897(c)(2) of the Code during the applicable period specified in
Section 897(c)(1)(A)(ii) of the Code. Each Company has disclosed on all of its federal income Tax
Returns all positions taken therein that could give rise to a substantial understatement of federal
income Tax within the meaning of Section 6662 of the Code. Neither Company is a party to or bound
by any Tax allocation or sharing Contract. Neither Company (A) has been a member of an affiliated
group filing a consolidated federal income Tax Return (other than a group the common parent of
which was such Company) and (B) has any liability or obligation for the Taxes of any Person (other
than such Company) under Regulation 1.1502-6 (or any similar provision of applicable state, local,
or foreign law), as a transferee or successor, by Contract, or otherwise.

               (f) The unpaid Taxes of each Company, if any, (1) did not, as of the date of the Combined
Audited Financial Statements, exceed the reserve for Tax liability (rather than any reserve for
deferred Taxes established to reflect timing differences between book and Tax income) set forth on
the face of the Combined Audited Financial Statements (rather than in any notes thereto) and (2) do
not materially exceed that reserve as adjusted for the passage of time through the Closing Date in
accordance with the past custom and practice of such Company in filing its Tax Returns. Since the
date of the Combined Audited Financial Statements, neither the US Company nor the CA Company has
incurred any liability or obligation for Taxes arising from extraordinary gains or losses, as such
term is used in GAAP, outside the ordinary course of business.

               (g) Neither Company will be required to include any item of income in, or exclude any item of
deduction from, Taxable income for any Taxable period (or portion thereof) ending after the Closing
Date as a result of any:

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

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

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

                    (iv) installment sale or open transaction disposition made on or prior to the Closing
Date; or

                    (v) prepaid amount received on or prior to the Closing Date.

               (h) [Intentionally omitted]

               (i) Each CA Company Seller who is a non-resident of Canada within the meaning of the Income
Tax Act (Canada) is (1) listed on Section 3.14(i) of the Disclosure Schedule, (2) a
resident of the United States of America for purposes of the Canada — U.S. Income Tax Convention
(1980), as amended (the “Treaty”), (3) entitled to the full benefits of Article XIII of the
Treaty such that any gain arising on the disposition of the Shares is only taxable in the United
States of America, and (4) for greater certainty, not limited to claiming benefits under the Treaty
under Article XXIX-A of the Treaty.

               (j) There are no circumstances existing and no transaction or event or series of transactions
or events has occurred which could result in the application of any of sections 17, 78, 80, 80.01,
80.02, 80.03 or 80.04 of the Income Tax Act (Canada) or any equivalent or analogous provision of
any applicable Tax legislation to CA Company or any subsidiary. The CA Company and each subsidiary
is not subject to a liability for Taxes of any other person, including without limitation,
liability arising under section 160 of the Income Tax Act (Canada) or liability under any agreement
under section 191.3 of the Income Tax Act (Canada). The CA Company has made or obtained records or
documents that meet the requirements of paragraphs 247(4)(a) to (c) of the Income Tax Act (Canada)
with respect to all transactions and arrangements between the CA Company and any non-resident
person, within the meaning of the Income Tax Act (Canada), with whom the CA Company was not dealing
at arm’s length, within the meaning of the Income Tax Act (Canada).

          3.15 Permits. Each Company has all material Permits, if any, that are necessary to
entitle it to own or lease, operate and use its assets and to carry on and conduct its business as
currently conducted. There are no pending or, to the Knowledge of the Companies, threatened claims
or proceedings challenging the validity of or seeking to revoke or discontinue, or alter in any
respect that could adversely affect the ownership or leasing, operation or use of the assets or
conduct of the business of either Company, any of the Permits, and each such Permit is in full
force and effect.

          3.16 Intellectual Property.

               (a) Except as set forth on Section 3.16(a) of the Disclosure Schedule, each Company
owns or otherwise holds the right to use all Intellectual Property necessary or desirable for the
conduct of such Company’s business as currently conducted or as currently proposed to be conducted
(the “Necessary IP Rights”). The consummation of the transactions contemplated by this
Agreement will not (i) alter, restrict, encumber, impair or extinguish any

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Necessary IP Rights, (ii) result in the creation of any Encumbrance with respect to any of the
Necessary IP Rights, or (iii) release any source code from either Company from escrow with a third
party.

               (b) Except as set forth on Section 3.16(b) of the Disclosure Schedule, there are no
legal disputes or claims pending or, to the Knowledge of the Companies, threatened (i) alleging
infringement, misappropriation or any other violation of any Intellectual Property of any Person by
either Company or any of the Company Products or Company Services, or (ii) challenging the scope,
ownership, validity, or enforceability of the Company IP or of either Company’s rights under the
Necessary IP Rights. Except as set forth on Section 3.16(b) of the Disclosure Schedule, to
the Knowledge of the Companies, neither Company has infringed, misappropriated or otherwise
violated any Intellectual Property of any Person.

               (c) (i) The Companies hold all right, title and interest in and to the Company IP, free and
clear of any Encumbrance, other than Permitted Encumbrances, (ii) except for agreements disclosed
in the Disclosure Schedules, or previously disclosed by a Company to the Purchaser, no Person,
other than the Companies, possesses any current or contingent rights to license, sell or otherwise
distribute or perform the Company Products or Company Services or any other products or services
utilizing the Company IP, and (iii) except as set forth on Section 3.16(c) of the Disclosure
Schedule, there are no material restrictions on the disclosure, use, license or transfer of the
Necessary IP Rights, the Company IP, the Company Products, or the Company Services.

               (d) Section 3.16(d)(i) of the Disclosure Schedule contains a true and complete list of
all Registered IP. The Companies have taken all actions necessary to maintain and protect the
Registered IP, including payment of applicable maintenance fees, filing of applicable statements of
use, timely response to office actions and disclosure of any required material information, and all
assignments (and licenses where required) of the Registered IP have been duly recorded with the
appropriate governmental authorities. Section 3.16(d)(i) of the Disclosure Schedule
contains a true and complete list of all actions that must be taken within 90 days of either the
date hereof or the Closing Date with respect to any of the Registered IP. The Companies have
complied with all applicable notice and marking requirements for the Registered IP. None of the
Registered IP has been adjudged invalid or unenforceable in whole or part and, to the Knowledge of
the Companies, all of the Registered IP is valid and enforceable.

               (e) Section 3.16(e) of the Disclosure Schedule contains a true and complete list of
(A) all agreements pursuant to which either Company has provided source code of any Company Product
or related to Company Services or any part thereof to a third party, and (B) all third parties to
whom either Company has granted a contingent right to receive the source code of any Company
Product or any part thereof, whether pursuant to an escrow arrangement or otherwise.

               (f) The Companies have taken all reasonable steps to protect their rights in the Company IP
and to protect any confidential information provided to them by any other Person under obligation
of confidentiality. Without limitation of the foregoing, neither Company has made any of its
material trade secrets or other material confidential or proprietary information that it intended
to maintain as confidential (including source code with respect to

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Company Products and Company Services) available to any other Person except pursuant to
written agreements or other circumstances requiring such Person to maintain the confidentiality of
such information or materials.

               (g) The Companies have obtained from all Persons (including current or former directors,
managers, officers, employees and consultants) who have created any portion of, or otherwise who
would have any rights in or to, any Company IP, Company Product or Company Services valid and
enforceable written assignments of any such rights to, and waivers of moral rights thereto in favor
of, the Companies (to the extent such written assignments and waivers are necessary for the
Companies to own all rights in or to any Company IP, Company Product or Company Services). Neither
Company is obligated to provide any consideration (whether financial or otherwise) to any third
party with respect to any exercise of rights by such Company, or any successor to such Company, in
any Company IP, Company Product, or Company Service.

               (h) The Companies have previously disclosed to Purchaser all Company Products and Company
Services.

               (i) Except as set forth on Section 3.16(i) of the Disclosure Schedule, no Company
Product or Company Service (including any Company Product or Company Service currently under
development) contains any code that is, in whole or in part, subject to the provisions of any
license to software that is made generally available to the public without requiring payment of
fees or royalties (including any obligation or condition under any “open source” license such as,
without limitation, the GNU General Public License, GNU Lesser General Public License, Mozilla
Public License or BSD licenses) (collectively, “Publicly Available Software”), nor has any
Publicly Available Software been used in the creation of any Company Product or Company Service.
All Publicly Available Software used by either Company has been used in its entirety and without
modification. Neither Company has incorporated or otherwise used Publicly Available Software in a
manner that would require, or condition the use or distribution of, any Company Product or Company
Service on the disclosure, licensing or distribution of any source code for any portion of such
Company Product or Company Service.

               (j) To the Knowledge of the Companies, the Company Products, the Company Services, and the
other IT Assets do not contain or use any computer code designed to disrupt, disable, harm, distort
or otherwise impede in any manner the legitimate operation of any IT Assets, or any Company Product
or the Company Services by their authorized users, or any other associated software, firmware,
hardware, computer system or network (including without limitation what are sometimes referred to
as “viruses”, “worms”, “time bombs” and/or “back doors”).

               (k) Except as disclosed in the Disclosure Schedules, neither Company has transferred ownership
of, or granted any exclusive license with respect to, any Company IP to any other Person.

               (l) No funding, facilities or personnel of any governmental agency were used, directly or
indirectly, to develop or create, in whole or in part, any Company IP,

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Company Product, or any Company Service. Neither Company is (or has ever been) a member or
promoter of, or a contributor to, any industry standards body or similar organization that could
compel either Company to grant or offer to any other Person any license or right to any Company IP.

               (m) The IT Assets operate and perform in all material respects in a manner that permits the
Companies to conduct their business as currently conducted and, to the Knowledge of the Companies,
no person has gained unauthorized access to any IT Asset. The Companies have implemented
reasonable backup and disaster recovery processes consistent with industry best practices.

               (n) The Companies have disclosed to Purchaser all computer data bases owned by either Company
which include, without limitation, customer and prospective customer mailing lists (the “Owned
Data Bases”). The Companies have full and exclusive right, title and ownership, freely
transferable, in all of the Owned Data Bases, including all intellectual property rights associated
therewith, free and clear of any Encumbrances. Neither the execution of this Agreement nor the
consummation of the transactions contemplated hereby will trigger any obligation on the part of
either Company to place into, hold or release any Owned Data Base in escrow. The data in the Owned
Data Base was developed and collected solely through the effort of the Companies and none of the
data is derived from any source other than through use of the Company Products and the Company
Services. No derivative work of any of the Owned Data Bases exists separate from such Owned Data
Bases.

               (o) The Company Products and the Company Services are as described in their respective
Documentation in all material respects and functionally perform in accordance with such
Documentation in all material respects.

          3.17 Employee Matters and Benefit Plans.

               (a) Section 3.17(a) of the Disclosure Schedule lists the following: (i) the names and
titles of all Employees together with the location of their employment; (ii) the date each Employee
was hired; (iii) the rate of annual remuneration of each Employee at the date hereof, any bonuses
paid since the end of the Companies’ last completed financial year; (iv) the names of all retired
employees of the Companies who are entitled to benefits from the Companies and the nature of such
benefits; and (v) the names of all non-active employees, the reason they are non-active employees,
whether they are expected to return to work and, if so, when, and the nature of any benefits to
which such non-active employees are entitled from the Companies. Except as disclosed in the
Disclosure Schedule, no Employee is employed under a contract which cannot be terminated by the CA
Company with or without notice, except for those Employees who are employed on indefinite hirings
requiring reasonable notice of termination by applicable Canadian law.

               (b) No Employees are represented by any labor organization, and neither Company is a party to
or bound by any collective bargaining agreement or other agreement with any labor organization.
There have been no representation or certification proceedings, or petitions seeking a
representation proceeding, pending or, to the Knowledge of the Companies, threatened to be brought
or filed with the National Labor Relations Board, the

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Canada Industrial Relations Board, the Ontario Labor Relations Board, or any other labor
relations tribunal or Governmental Authority with respect to any Employees.

               (c) There are no strikes, work stoppages, slowdowns, job actions, disputes, lockouts,
arbitrations, or grievances or other material labor disputes pending or, to the Knowledge of the
Companies, threatened, against or involving either Company. There are no unfair labor practice
charges, grievances, or complaints pending or, to the Knowledge of the Companies, threatened by or
on behalf of any Employee or group of Employees. To the knowledge of the Companies, there have been
no actual or threatened and there are no pending union organizing activities involving the
Employees and the Companies do not have any labor problems that might adversely affect the business
or lead to an interruption of operations.

               (d) Except as set forth on Section 3.17(d) of the Disclosure Schedule, neither Company
has received written notice of any complaints, charges, or claims against it and, to the Knowledge
of the Companies, there are no complaints, charges or claims threatened to be brought or filed with
any Governmental Authority, based on, arising out of, in connection with, or otherwise relating to
the hiring, employment or termination of employment of any individual by either Company.

               (e) There has been no “mass layoff” or “plant closing” as defined by the federal Worker
Adjustment, Retraining and Notification Act or any similar Canadian, state, provincial, or foreign
statute or law in respect of either Company within the six months prior to the date of this
Agreement.

               (f) The Sellers have provided the Purchaser with all inspection reports under Occupational
Health and Safety Acts relating to the CA Company. There are no outstanding inspection Orders nor
any pending or threatened charges made under any Occupational Health and Safety Acts relating to
the CA Company. There have been no fatal or critical accidents within the last three years which
might lead to charges involving the CA Company under Occupational Health and Safety Acts. The CA
Company has complied in all respects with any Orders issued under Occupational Health and Safety
Acts. There are no appeals of any Orders under Occupational Health and Safety Acts relating to the
CA Company which are currently outstanding.

               (g) There are no notices of assessment, provisional assessment, reassessment, supplementary
assessment, penalty assessment or increased assessment (collectively, “assessments”) or any other
communications related thereto which the CA Company has received from any workers’ compensation or
workplace safety and insurance board or similar authorities in any jurisdictions where the business
of the CA Company is carried on. There are no assessments which are unpaid on the date hereof or
which will be unpaid at the Closing Date, and there are no facts or circumstances which may result
in an increase in liability to the CA Company from any applicable workers’ compensation or
workplace safety and insurance legislation, regulations or rules after the Closing Date.

               (h) Section 3.17(h) of the Disclosure Schedule contains (i) a true and complete list
of each Company Benefit Plan in effect as of the date of this Agreement, (ii) a list of all
insurance policies with respect to Company Benefit Plans, and (iii) a list of all self

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insurance arrangements for Company Benefit Plans. Neither Company is a party to or bound by,
nor does either Company have any liability or contingent liability with respect to, any Company
Benefit Plan other than those listed in Section 3.17(h) of the Disclosure Schedule.

               (i) Neither the US Company nor any ERISA Affiliate currently maintains, nor at any time in the
six calendar years ending immediately prior to the calendar year in which the Closing Date occurs
maintained or had an obligation to contribute to, any defined benefit pension plan subject to Title
IV of ERISA, or any “multiemployer plan” as defined in Section 3(37) of ERISA, or any defined
benefit pension or superannuation plan or scheme that is or was subject to the laws of any
jurisdiction outside of the United States.

               (j) No Company Benefit Plan is or, if it were to be properly registered would be, a
“registered pension plan” as defined in subsection 248(1) of the Income Tax Act (Canada). The CA
Company is the only participating employer in the Company Benefit Plans in which Employees of the
CA Company participate.

               (k) With respect to each Company Benefit Plan, each Company has made available to Purchaser a
true and complete copy of the plan documents and any amendments thereto; if the plan is required to
file an annual report with any governmental authority (e.g., Form 5500 annual reports, if any, in
the United States), copies of the annual reports filed for the last three plan years with
accompanying schedules; the current summary plan description for each Company Benefit Plan covering
Employees in the United States for which a summary plan description is required, or similar
employee disclosure documents for each Company Benefit Plan covering Employees in Canada; and each
trust agreement, insurance contracts, or other funding vehicles associated with a Company Benefit
Plan or related to the funding of a Company Benefit Plan.

               (l) Each Company Benefit Plan complies, and has complied (except for any noncompliance that
has been fully addressed and resolved as of the date hereof including, where applicable, to the
satisfaction of applicable Governmental Authorities), in all material respects with the applicable
provisions of, and has been administered in material compliance with and if applicable, is in good
standing under, all applicable Laws (including the Code and ERISA with respect to a plan in the
United States, and applicable pension, insurance and securities law, the Income Tax Act (Canada)
and the Guidelines for Capital Accumulation Plans with respect to a plan in Canada, and all other
applicable Laws, including applicable data privacy directives).

               (m) There is no pending or, to the Knowledge of the Companies, threatened claim, legal action,
proceeding, audit, or investigation against or involving any Company Benefit Plan, other than
routine claims for benefits. No filings have been made or are currently pending with respect to
any Company Benefit Plan that is a plan in the United States under any voluntary compliance program
of the Internal Revenue Service or the Department of Labor. Neither Company nor any plan fiduciary
has engaged in any “prohibited transaction” (as defined in Section 4975 of the Code or Section 406
of ERISA), which would reasonably be expected to subject such Company or any person that such
Company has an obligation to indemnify to any material tax or penalty imposed under Section 4975 of
the Code or Section 502 of ERISA.

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               (n) Each Company Benefit Plan that meets or purports to meet the requirements of Section
401(a) of the Code is qualified in form and operation under Section 401(a) of the Code and has
received a current favorable determination letter from the Internal Revenue Service. Each Company
Benefit Plan that is registered under the Income Tax Act (Canada) is the subject of a current
registration letter from the Canada Revenue Agency.

               (o) All contributions or payments with respect to or on behalf of Employees that were required
to be made by either Company or by an ERISA Affiliate under the terms of the Company Benefit Plans
or applicable Law have been made on a timely basis.

               (p) No Company Benefit Plan provides for life, health, medical or other welfare benefits to
former employees or beneficiaries or dependents thereof, except for health continuation coverage as
required by Section 4980B of the Code or Part 6 of Title I of ERISA.

               (q) Any Company Benefit Plan that is a nonqualified deferred compensation plan subject to the
requirements of Code Section 409A by its terms is in compliance with the requirements of Code
Section 409A and applicable guidance and regulations in effect from time to time thereunder, and
has been operated in compliance with such requirements. No event has occurred that would be
treated by Code Section 409A(b) as a transfer of property for purposes of Code Section 83.

               (r) Neither the execution and delivery of this Agreement nor the consummation of the
transactions contemplated hereby will (either alone or in conjunction with any other event) result
in, cause the accelerated vesting, funding or delivery of, or increase the amount or value of
(including the forgiveness of indebtedness), any payment or benefit to any employee, officer,
manager, or director of either Company under a Company Benefit Plan, or result in any limitation on
the right of either Company to amend, merge or terminate any Company Benefit Plan or related trust.

               (s) Except as disclosed on Section 3.17(s) of the Disclosure Schedule, each Employee
of the US Company is an employee-at-will, and the US Company would have no obligation to make
severance payments to any Employee if it were to terminate the Employee’s employment with the US
Company.

               (t) None of the Employees or independent contractors engaged by either Company as of the date
of this Agreement has given notice terminating his or her contract of employment or engagement with
the Company with which he or she has a contract of employment or engagement.

               (u) None of the Employees has been provided or is under notice of dismissal, nor is there any
liability outstanding to any Employee or independent contractor engaged by either Company as at the
date of this Agreement or any former employee of either Company or any individual formerly engaged
as an independent contractor by either Company, except for remuneration or other benefits accruing
due, and no such remuneration or other benefit that has fallen due for payment has not been paid.

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               (v) With respect to all Employees and former employees of either Company, each Company: (i) is
in compliance in all material respects with all applicable Laws respecting labor and employment,
including all employment standards, human rights, labor relations, occupational health and safety,
pay equity, employment equity, employee privacy and workers’ compensation or workplace safety and
insurance legislation and there are no outstanding claims, complaints, investigations, prosecutions
or orders under such legislation; (ii) is in compliance with all employment practices, terms and
conditions of employment and wages and hours; (iii) has withheld and reported in a timely manner
all amounts required by law or by agreement to be withheld and reported with respect to wages,
salaries and other payments; (iv) is not liable for any arrears of wages or any Taxes or any
penalty for failure to comply with the foregoing; and (v) is not liable for any payment to any
trust or other fund governed by or maintained by or on behalf of any Governmental Entity, with
respect to unemployment compensation/insurance benefits, social security, or other benefits or
obligations (other than routine payments to be made in the normal course of business and consistent
with past practice).

               (w) No employee or former employee of the US Company, or family member thereof, is receiving
continuation coverage through the US Company under the Consolidated Omnibus Budget Reconciliation
Act of 1985, as amended (“COBRA”), as of the date of this Agreement.

          3.18 Environmental Matters.

               (a) Each Company is in compliance in all material respects with all Environmental Laws. Each
Company has obtained and is in compliance, in all material respects, with all Permits that may be
required pursuant to Environmental Laws for the occupation of its facilities and the operation of
its business as currently conducted.

               (b) Neither Company has received any notice regarding any actual or alleged violation of
Environmental Laws, including any investigatory, remedial or corrective obligations, arising under
Environmental Laws.

               (c) Neither Company has installed, used, generated, treated, disposed of, or arranged for the
disposal of any Hazardous Substances in any manner so as to create any liability or obligation
under any Environmental Law or any other liability for either Company or Purchaser.

          3.19 Insurance.

               (a) Section 3.19(a) of the Disclosure Schedule lists all policies to which each
Company is a party or under which any of its assets, employees, officers, managers, or directors
(in each such individual’s capacity as such) is a named insured or otherwise the beneficiary of
coverage thereunder (each such policy, an “Insurance Policy”). Section 3.19(a) of the
Disclosure Schedule also lists all self-insurance arrangements affecting either Company.

               (b) With respect to each Insurance Policy: (1) such Insurance Policy is legal, valid, binding,
enforceable, and in full force and effect; (2) such Insurance Policy will continue to be legal,
valid, binding, enforceable, and in full force and effect on identical terms following the
consummation of the transactions contemplated by this Agreement; (3) neither

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Company is, and to the Knowledge of the Companies, no other party to such Insurance Policy is,
in breach or default thereunder (including regarding payment of premiums or giving of notices); and
(4) no event has occurred that (with or without the passage of time or giving of notice) would
constitute such a breach or default, or permit termination, modification, cancellation or
acceleration under such Insurance Policy. Neither Company has received any notice of any actual or
threatened modification or cancellation of, or default under, any Insurance Policy.

          3.20 Affiliate Transactions. Except for the Contracts listed on Section 3.20 of
the Disclosure Schedule, no Seller nor any officer, manager, director, employee, stockholder,
or Affiliate of any Seller or of either Company is a party to any Contract or transaction with, or
has any claim for indemnification under applicable Law or any agreement against, either Company or
has any interest in any property, real or personal or mixed, tangible or intangible, of either
Company.

          3.21 No Brokers or Finders. No agent, broker, finder, investment or commercial
banker or other Person, engaged by or acting on behalf of any Seller or any Affiliate of any Seller
or either Company in connection with the negotiation, execution or performance of this Agreement or
the transactions contemplated hereby, is or will be entitled to any broker’s or finder’s or similar
fees or other commissions from either Company as a result of this Agreement or the transactions
contemplated hereby.

          3.22 Accounts Receivable. All accounts receivable (including any notes receivable)
of either Company that are reflected on the Combined Audited Financial Statements or on the
accounting records of either Company as of the Closing (collectively, the “Accounts
Receivable”) represent or will represent valid obligations arising from sales actually made or
services actually performed by the Companies in the ordinary course of business consistent with
past practices. The Accounts Receivable are and will be as of Closing current and collectible net
of any reserves therefor shown on the Combined Audited Financial Statements or such accounting
records (which reserves are adequate and calculated consistent with the Companies’ past practice).
There is no contest, claim or right of set-off (other than returns in the ordinary course of
business which are not, individually or in the aggregate, material) under any Contract with any
obligor of any Account Receivable regarding the amount or validity of such Account Receivable.

          3.23 Inventory. With respect to the inventory of each Company, (a) all such
inventory is in good and merchantable condition and is fit for the purpose for which it is
intended, (b) all of such inventory is of a quality usable and salable in the ordinary course of
business consistent with past practices, (c) none of such inventory is slow-moving, obsolete,
damaged, or defective, and (d) none of such inventory is on consignment. The inventory of the
Combined Companies is valued on the Combined Audited Financial Statements at the lesser of cost or
fair market value net of reserves in accordance with GAAP.

          3.24 Powers of Attorney. There is no outstanding power of attorney with respect to
either Company.

          3.25 Product Warranties. Each product manufactured, sold, licensed, or delivered by
the Company is, or was at all times when such actions occurred, in material

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conformance with all applicable contractual obligations and all applicable express and implied
warranties. Neither Company has any liability (and to the Knowledge of the Companies there is no
reasonable basis for any proceeding against either Company that could give rise to any liability)
for replacement or repair or other damages in connection with product warranty claims, subject only
to the reserve for product warranty claims shown on the face of the Combined Audited Financial
Statements (rather than in any notes thereto). The Companies have disclosed to Purchaser any
guaranty, warranty, or other indemnity to which any Company Product is subject.

          3.26 Products Liability. To the Knowledge of the Companies, neither Company has any
liability, and there is no reasonable basis for any proceeding against either Company that could
give rise to any liability, arising out of, relating to or resulting from any injury to any
individual or property as a result of the ownership, possession or use of any product manufactured,
sold, licensed, or delivered by the Company prior to the Closing Date.

          3.27 Material Suppliers. Section 3.27 of the Disclosure Schedule lists the
suppliers (listing dollar volume for each) of products and services to the Companies that involve
payments by the Companies in excess of $50,000 for the 12-month period ended as of the date of this
Agreement. Neither Company has received any communication indicating that, and, to the Knowledge
of the Companies, there are no circumstances indicating that, any current supplier of either
Company is terminating, materially reducing or making a materially adverse change in, or intends to
terminate, materially reduce, or make a materially adverse change in, any aspect of its or any of
its Affiliate’s business relationship with either Company. To the Knowledge of the Companies, the
consummation of the transactions contemplated hereby will not adversely affect in any material
manner either Company’s business relationship with any current supplier.

          3.28 Indebtedness. All Indebtedness of the Companies is disclosed in the Combined
Audited Financial Statements. Neither Company is in default with respect to any Indebtedness.
Sellers have delivered to Purchaser true, correct, and complete copies of all documents relating to
any Indebtedness of either Company.

          3.29 Privacy Matters.

               (a) Disclosure to the Purchaser. The disclosure or transfer of the Personal Information by
the Companies to any Person and transfer of the Personal Information by the Companies to the
Purchaser as part of the Purchaser’s due diligence and as contemplated by this Agreement or any
ancillary agreement complies in all material respects with applicable Privacy Laws and is
consistent with the Privacy Policies.

               (b) Compliance. The Companies carry on and have carried on their business in compliance in
all material respects with all Privacy Laws wherever such Personal Information may be situate.

               (c) Consent. Where consent of an individual to the collection, use or disclosure of Personal
Information is required, either by law or in accordance with the Privacy Policies such consent has
been obtained in accordance in all material respects with Privacy Law and with the Privacy
Policies.

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               (d) Purposes. All Personal Information held by the Companies was collected and is used and
disclosed by the Companies for reasonable and legitimate purposes in accordance in all material
respects with Laws and the Privacy Policies.

               (e) Agents. Where an information protection agreement was required, such agreements were
entered into by the applicable Company and the applicable agent or third party.

               (f) No Changes in Privacy Laws. To the Knowledge of the Companies, there are no pending or
proposed changes to Privacy Laws which would render unlawful or restrict the operations of the
Companies, or any part thereof, or the manufacture, sale, distribution or provision of any Company
Products or Company Services by the Companies.

               (g) No Investigations, Orders or Offences.

                    (i) there are no current or unresolved requests for access to Personal Information, nor is
any Company the subject of a complaint, audit, review, investigation or inquiry or similar
proceeding, made under any Privacy Law;

                    (ii) no order has been issued, nor any recommendations made, by any privacy commissioner
or other data protection authority, in respect of either of the Companies or any of their
authorized agents, of Personal Information held by or on behalf of either Company or of any
privacy practices or procedures of either Company;

                    (iii) neither Company has been charged with or convicted of an offence for non-compliance
with or breach of any Privacy Law nor has either Company been fined or otherwise sentenced for
non-compliance with or breach of any Privacy Law nor has a Company settled any prosecution
short of conviction for non-compliance with or breach of any Privacy Law;

                    (iv) neither Company has received any notice of judgment or commencement of proceedings of
any nature, or experienced any search and seizure related to, any breach or alleged breach of
or non-compliance with any Privacy Law; and

                    (v) to the Knowledge of the Companies, there are no facts or circumstances that could give
rise to breach or alleged breach of, or non-compliance with, any Privacy Law.

          3.30 Full Disclosure. In all material respects and to the Knowledge of the
Companies, the representations and warranties contained in this Article III do not contain
any untrue statements or omit a material fact necessary to make the statements and information in
this Article III not misleading.

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLERS

          Each Seller, severally and not jointly, represents and warrants to Purchaser as follows with
respect only to such Seller.

          4.1 Organization and Authorization; Capacity. If such Seller is an entity, such
Seller is a corporation or limited liability company duly organized, validly existing and in good
standing under the Laws of its state of incorporation or formation, as applicable, and has all
requisite power and authority to enter into this Agreement and the Ancillary Documents, perform its
obligations hereunder and thereunder, and consummate the transactions contemplated hereby and
thereby. If such Seller is a natural person, such Seller has the legal capacity to execute and
deliver this Agreement and the Ancillary Documents, to perform his or her obligations hereunder and
thereunder, and to consummate the transactions contemplated hereby and thereby.

          4.2 Due Execution and Delivery; Binding Obligations. The execution, delivery and
performance of this Agreement and the Ancillary Documents has been duly authorized by all necessary
action on the part of such Seller. This Agreement has been, and at the Closing the Ancillary
Documents will be, duly executed and delivered by such Seller, and this Agreement constitutes, and
each Ancillary Document will constitute when executed, a legal, valid and binding agreement of such
Seller, enforceable against such Seller in accordance with its terms, except as such enforcement
may be limited by bankruptcy, insolvency, reorganization, arrangement, moratorium or other Laws
relating to or limiting creditors’ rights generally or by equitable principles relating to
enforceability.

          4.3 Title to Shares and Membership Interests. Each CA Company Seller owns, of record
and beneficially, the Shares set forth opposite such CA Company Seller’s name on Schedule A
attached hereto, and at the Closing such Shares will be free and clear of all Encumbrances, except
for restrictions on transfer under foreign, federal, provincial, and state securities Laws. Each US
Company Seller owns, of record and beneficially, the Membership Interests set forth opposite such
US Company Seller’s name on Schedule B attached hereto, and at the Closing such Membership
Interests will be free and clear of all Encumbrances, except for restrictions on transfer under
foreign, federal, and state securities Laws.

          4.4 No Conflict or Violation. Neither the execution and delivery of this Agreement
by such Seller nor the consummation of the transactions contemplated hereby by such Seller will
result in (i) a breach or violation of, a conflict with, or create a right or obligation under, the
Organizational Documents of such Seller, if such Seller is an entity, (ii) a violation by such
Seller of any applicable Law, (iii) a breach or violation by such Seller of or default under any
order, judgment, writ, injunction decree or award to which such Seller is a party or by which such
Seller or such Seller’s Shares and/or Membership Interests, as applicable, are bound, or (iv) a
breach, violation of or a default under, conflict with or give rise to or create any right of any
Person to accelerate, increase, terminate, modify or cancel any right or obligation in a manner
adverse to such Seller, or result in the creation of any Encumbrance under, any Contract or other
obligation to which such Seller’s Shares and/or Membership Interests, as applicable, may be
subject. No consents, Permits, approvals or authorizations of, or notices, declarations, filings,
applications, transfers or registrations with, any Governmental Authority or any other Person are

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required to be made or obtained by such Seller by virtue of the execution, delivery or
performance of this Agreement or the consummation of the transactions contemplated hereby.

          4.5 Regulation D Securities. In connection with the acquisition of the Securities,
each of the CA Company Sellers listed on Schedule C hereto (the “Accredited US
Sellers”) represents to Purchaser as follows:

               (a) Such Seller has been provided the opportunity to ask questions and receive answers
concerning Purchaser and the transaction in which the Securities are being issued, and to obtain
any other information it deems necessary to verify the accuracy of the information provided to it;
and has otherwise acquired information about Purchaser sufficient to reach an informed and
knowledgeable decision to acquire its pro rata portion of the Securities. Such Seller is acquiring
its pro rata portion of the Securities for its own account for investment purposes only and not
with a view to, or for resale in connection with, any “distribution” thereof for purposes of the
Securities Act.

               (b) Such Seller is aware of the provisions of Rule 144 promulgated by the SEC under the
Securities Act (“Rule 144”), which, in substance, permits limited public resale of
“restricted securities” acquired, directly or indirectly, from the issuer thereof (or from an
affiliate of the issuer), in a nonpublic offering subject to the satisfaction of certain
conditions.

               (c) Such Seller understands that the Securities have not been registered under any state,
provincial or other securities laws, nor has any prospectus been filed with respect thereto, and
may not be offered or sold without compliance with applicable state, provincial or other securities
laws, whether through registration of the offer and sale of the Securities, the filing of, and
obtaining of a final receipt for, a prospectus in respect of such offer and sale of the Securities,
or in reliance upon one or more exemptions from registration or prospectus requirements available
under state, provincial or other securities laws.

               (d) Such Seller further understands that the Securities must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from registration or
prospectus requirements is otherwise available. In addition, such Seller understands that the
certificate evidencing its pro rata portion of the Securities will be imprinted with a legend in
substantially the following form:

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY PROVINCIAL, STATE OR OTHER SECURITIES LAWS AND MAY NOT BE
OFFERED, SOLD, TRANSFERRED, OR ASSIGNED EXCEPT (i) PURSUANT TO REGISTRATIONS THEREOF
UNDER SUCH LAWS, OR (ii) IF, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO
XATA CORPORATION THE PROPOSED TRANSFER MAY BE EFFECTED IN COMPLIANCE WITH APPLICABLE
SECURITIES LAWS WITHOUT SUCH REGISTRATIONS.

               (e) Such Seller acknowledges that the Securities being sold to the Foreign Sellers are being
offered and sold in reliance upon Regulation S under the Securities Act

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and in reliance on the prospectus exemption from Ontario securities laws relating to
securities issued in connection with a takeover bid and that Purchaser will refuse to register any
transfer of such Securities not made in accordance with the provisions of Regulation S or Canadian
securities laws, pursuant to registration under the Securities Act, pursuant to a prospectus for
which a final receipt has been issued by the applicable securities regulatory authority, or
pursuant to an available exemption from registration, or a combination of the foregoing as
applicable. Such Seller agrees that stop-transfer instructions may be filed with respect to such
Securities with the transfer agent for such Securities. Such Seller acknowledges that the
Securities acquired by such Seller may not be offered or sold in the United States or to “U.S.
persons” as defined in Rule 902(k) of Regulation S under the Securities Act, unless they are
registered under the Securities Act or an exemption from the registration requirements of the
Securities Act is available.

               (f) Such Seller has carefully read this Agreement and has discussed the limitations upon the
such Seller’s ability to dispose of the Securities with the Seller’s counsel, to the extent the
Seller has felt necessary.

               (g) Such Seller is an “accredited investor” as defined in Rule 501 promulgated under the
Securities Act.

          4.6 Regulation S Securities. In connection with his, her or its acquisition of the
Securities, each of the CA Company Sellers listed on Schedule D hereto (the “Foreign
Sellers”) represents to Purchaser as follows:

               (a) Such Seller is not a “U.S. person” as defined in Rule 902(k) of Regulation S under the
Securities Act and will not be acquiring any of the Securities for the account or benefit of any
such “U.S. person.”

               (b) Such Seller is aware of the provisions of Rule 144, which, in substance, permits limited
public resale of “restricted securities” acquired, directly or indirectly, from the issuer thereof
(or from an affiliate of the issuer), in a nonpublic offering subject to the satisfaction of
certain conditions.

               (c) Such Seller understands that the Securities have not been registered under any state or
other securities laws and may not be offered or sold without compliance with applicable state or
other securities laws, whether through registration of the offer and sale of the Securities or in
reliance upon one or more exemptions from registration available under state or other securities
laws.

               (d) Such Seller further understands that the Securities must be held indefinitely unless
subsequently registered under the Securities Act or unless an exemption from registration is
otherwise available. In addition, such Seller understands that the certificate evidencing its pro
rata portion of the Securities will be imprinted with a legend in substantially the following form:

THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE OR OTHER SECURITIES LAWS AND MAY NOT BE OFFERED,
SOLD,

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TRANSFERRED, OR ASSIGNED EXCEPT (i) PURSUANT TO REGISTRATIONS THEREOF UNDER SUCH
LAWS, OR (ii) IF, IN THE OPINION OF COUNSEL REASONABLY SATISFACTORY TO XATA
CORPORATION THE PROPOSED TRANSFER MAY BE EFFECTED IN COMPLIANCE WITH APPLICABLE
SECURITIES LAWS WITHOUT SUCH REGISTRATIONS.

               (e) Such Seller acknowledges that the Securities being sold to the Foreign Sellers are being
offered and sold in reliance upon Regulation S under the Securities Act and that Purchaser will
refuse to register any transfer of such Securities not made in accordance with the provisions of
Regulation S, pursuant to registration under the Securities Act, or pursuant to an available
exemption from registration. Such Seller agrees that stop-transfer instructions may be filed with
respect to such Securities with the transfer agent for such Securities. Such Seller acknowledges
that the Securities acquired by such Seller may not be offered or sold in the United States or to
“U.S. persons” as defined in Rule 902(k) of Regulation S under the Securities Act, unless they are
registered under the Securities Act or an exemption from the registration requirements of the
Securities Act is available.

               (f) Such Seller is acquiring its pro rata portion of the Securities for such Seller’s own
account, and such Seller shall not dispose of any of the Securities in any manner that would
violate the Securities Act or any applicable rule or regulation promulgated thereunder. Such
Seller agrees not to engage in hedging transactions with regard to the Securities unless in
compliance with the Securities Act.

               (g) Such Seller acknowledges that the offer of Securities is being made to such Seller outside
the United States and that this Agreement was delivered to such Seller and executed by such Seller
outside the United States.

               (h) Such Seller has carefully read this Agreement and has discussed the limitations upon the
such Seller’s ability to dispose of the Securities with the Seller’s counsel, to the extent the
Seller has felt necessary.

          4.7 Non-Accredited US Sellers. Each of the CA Company Sellers listed on Schedule
E hereto represents to Purchaser that such Seller is a Non-Accredited US Seller.

          4.8 Legal and Other Advice; Access to Information. Each Seller that will receive
Securities hereunder has consulted with its own counsel and accountant for advice concerning the
various legal, tax and economic considerations relating to the prospective investment, including
the limitations on trading the Securities and the resale restrictions imposed by applicable
securities laws. Each Seller acknowledges that Purchaser has made no representation regarding any
applicable hold periods or other resale restrictions, that such Seller is solely responsible to
determine what the restrictions are and for compliance therewith. Each Seller has been provided
the opportunity to ask questions and receive answers concerning Purchaser and the transaction in
which the Securities are being issued and the transactions contemplated by the Financing Agreement,
and to obtain any other information it deems necessary to verify the accuracy of the information
provided to it; and has otherwise acquired information about Purchaser sufficient to reach an
informed and knowledgeable decision to

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acquire its pro rata portion of the Securities
(including without limitation a copy of the Financing Agreement and related agreements, and any
other material information about the transactions contemplated thereby).

          4.9 No Other Representations. Each Seller makes no representations or warranties, express
or implied, of any nature whatsoever except as specifically set forth in this Agreement and the
Ancillary Documents.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PURCHASER

          Purchaser represents and warrants to Sellers as follows:

          5.1 Organization and Authorization of Purchaser. Purchaser is a corporation duly
organized, validly existing and in good standing under the Laws of the State of Minnesota.
Purchaser has the requisite corporate power and authority to enter into this Agreement, to perform
its obligations hereunder, and to consummate the transactions contemplated hereby.

          5.2 Due Execution and Delivery; Binding Obligations. The execution, delivery and
performance by Purchaser of this Agreement have been duly authorized by all necessary action on the
part of Purchaser. This Agreement has been duly executed and delivered by Purchaser. This
Agreement constitutes the legal, valid and binding agreement of Purchaser, enforceable in
accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency,
reorganization, arrangement, moratorium or similar Laws relating to or limiting creditors’ rights
generally or by equitable principles relating to enforceability.

          5.3 No Conflict or Violation. Neither the execution and delivery of this Agreement
by Purchaser nor the consummation of the transactions contemplated hereby, will result in (i) a
violation of, or a conflict with, Purchaser’s Organizational Documents, (ii) a material violation
by Purchaser of any applicable Law, or (iii) a violation by Purchaser of any order, judgment, writ,
injunction decree or award to which it is a party or by which it is bound. No consents, Permits,
approvals or authorizations of, or declarations, filings, applications, transfers or registrations
with, any Governmental Authority or any other Person are required to be made or obtained by
Purchaser by virtue of the execution, delivery or performance of this Agreement or the consummation
of the transactions contemplated hereby.

          5.4 No Brokers or Finders. No agent, broker, finder, investment or commercial banker
or other Person engaged by or acting on behalf of Purchaser or any of its Affiliates in connection
with the negotiation, execution or performance of this Agreement or the transactions contemplated
herein is or will be entitled to any broker’s or finder’s or similar fees or other commissions as a
result of this Agreement or the transactions contemplated herein except for such fees that will be
payable by Purchaser or by either Company after the Closing.

          5.5 Investment Intent. Purchaser is acquiring the Shares and the Membership
Interests for its own account for investment and not with a view to, or for sale in connection
with, any distribution thereof. Purchaser has no present intention of selling, granting
participation in, or otherwise distributing the Shares or the Membership Interests. Purchaser is
an “accredited investor” as defined in Rule 501 promulgated under the Securities Act. Purchaser

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understands that neither the Shares nor the Membership Interests have been registered under
the Securities Act, and that neither the Shares nor the Membership Interests may be sold,
transferred or otherwise disposed of without registration under the Securities Act, or an exemption
therefrom. Purchaser has such knowledge and experience in financial, Tax, and business matters in
general, and investments in securities in particular, so as to enable Purchaser to evaluate the
merits and risks of an investment in the Shares and the Membership Interests and to make an
informed investment decision with respect to an investment in the Shares and the Membership
Interests.

          5.6 Issuance of Shares of Purchaser Common Stock. Subject to receipt of the
Purchaser Shareholder Approval, the Securities have been duly authorized and reserved, and, upon
issuance in accordance with the terms of this Agreement will be validly issued, fully paid and
non-assessable.

          5.7 Financing Agreement. Purchaser has provided Sellers’ Representative with a true
and correct copy of the Financing Agreement, as executed by the parties thereto.

          5.8 No Other Representations and Warranties. Purchaser makes no representations or
warranties, express or implied, of any nature whatsoever except as specifically set forth in this
Agreement and the Ancillary Documents.

ARTICLE VI

COVENANTS

          6.1 Access to Information. Between the date of this Agreement and the Closing, the
Seller Parties shall afford Purchaser and its authorized representatives reasonable access during
normal business hours and upon reasonable prior notice to all of the properties, personnel, books,
and records of each Company, and shall promptly deliver or make available to Purchaser information
concerning the business, properties, assets, and personnel of each Company as Purchaser may from
time to time reasonably request.

          6.2 Conduct of the Business. Except as specifically contemplated by this Agreement,
from the date hereof through the Closing Date, each Company shall conduct its business in the
ordinary course consistent with past practice. Without limiting the generality of the foregoing,
except as specifically contemplated by this Agreement or as consented to in writing by Purchaser,
neither Company shall:

               (a) amend its Organizational Documents;

               (b) authorize or issue any shares of capital stock or any subscription, option, warrant, call
right, preemptive right or other agreement or commitment obligating the Company to issue, sell,
deliver or transfer (including any rights of conversion or exchange under any outstanding security
or other instrument) any economic, voting, ownership or any other type of interest or security in
such Company;

               (c) sell, transfer, dispose of, or agree to sell, transfer, or dispose of, any material assets
other than sales of inventory in the ordinary course of business consistent with past practice;

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               (d) acquire any material assets other than purchases of inventory in the ordinary course of
business consistent with past practice, or acquire or merge with any other Person;

               (e) change any financial or Tax accounting practice, policy or method;

               (f) make any loan, advance or capital contributions to or investment in any Person;

               (g) incur any indebtedness for borrowed money or enter into any guarantee of such
indebtedness;

               (h) cancel or forgive any material debts or claims or redeem or repay any Indebtedness;

               (i) grant any Encumbrance on any asset, other than any Permitted Encumbrance;

               (j) become a guarantor with respect to any obligation of any other Person, (2) assume or
otherwise became obligated for any obligation of another Person for borrowed money, or (3) agree to
maintain the financial condition of any other Person;

               (k) (1) enter into any material Contract, or amend or terminate (other than upon expiration
in accordance with its terms) in any respect that is or was material and adverse to the Company any
material Contract to which the Company is or was a party, or (2) waive, release or assign any
material right or claim under any such material Contract;

               (l) (1) fail to prepare and timely file all Tax Returns relating to such Company required to
be filed by it during such period or timely withhold and remit any employment Taxes applicable to
such Company, (2) file any amended Tax Return, (3) make or change any election with respect to
Taxes, or (4) settle or compromise any Tax liability, enter into any Tax closing agreement,
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 or took any other similar action
relating to any Tax;

               (m) fail to preserve, or fail to prevent any degradation in, such Company’s relationship with
any of its suppliers, customers or others having material business relations with such Company;

               (n) (1) adopt, enter into, amend or terminate any Company Benefit Plan, bonus, profit-sharing,
compensation, severance, termination, pension, retirement, deferred compensation or other employee
benefit plan, agreement, trust, fund or other arrangement for the benefit or welfare of any
individual, except as required to comply with applicable Law, (2) enter into or amend any
employment arrangement or relationship with any new or existing employee that had or will have the
legal effect of any relationship other than at-will employment, (3) increase the compensation or
any fringe benefit of any director, officer or management-level employee or pay any benefit to any
director, officer or management-level employee, other than pursuant to a then-existing plan or
arrangement and in amounts consistent with past practice, or

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(4) grant any award to any director, officer or management-level employee under any bonus,
incentive, performance or other compensation plan or arrangement (including the removal of any
existing restriction in any benefit plan or agreement or award made thereunder); or

               (o) authorize, commit or agree to take any of the foregoing actions.

          6.3 Regulatory and Other Authorizations; Consents; Permits. Each party hereto shall
use its commercially reasonable efforts to obtain and provide all authorizations, notifications,
consents, orders and approvals of any Governmental Authority that may be or become necessary for
its execution and delivery of, and the performance of its obligations pursuant to, this Agreement
and will cooperate fully with the other party in promptly seeking to obtain all such
authorizations, consents, orders and approvals. The Sellers, Purchaser and the Company shall each
use commercially reasonable efforts to obtain, as soon as practicable, the consent of each other
Person that is required under any Contract, Lease, Permit or otherwise as a result of the
transactions contemplated by this Agreement; provided, however, that prior to the
Closing, Purchaser shall not contact such Persons without the prior written consent of the Company,
and that the responsibility for obtaining such consents is that of the Seller Parties. Without
limiting the generality of the foregoing, Purchaser agrees to provide such assurances as to
financial capability, resources and credit worthiness as may be reasonably requested by any Person
whose consent or approval is sought hereunder; provided, however, that Purchaser is
not required to make any payment to any other Person regarding any authorizations, consents, orders
or approvals.

          6.4 Confidentiality. For a period of five years from the Closing Date (except for
all trade secrets of either Company, for which the period shall continue until it is no longer a
trade secret as a result of disclosure of such information by persons other than the Sellers and
their employees and representatives) each Seller will hold, and will use its reasonable best
efforts to cause its representatives and Affiliates to hold, in confidence, except to the extent
required by applicable Law, all confidential information regarding either Company, except to the
extent that such information can be shown to have been (i) previously known on a nonconfidential
basis by such Seller, (ii) in the public domain through no fault of such Seller or (iii) later
lawfully acquired by such Seller from sources (other than either Company or its employees, or the
Purchaser or any of its subsidiaries) that are not under a non-disclosure or confidentiality
obligation in favor of either Company or the Purchaser or any of its subsidiaries; provided, that
such Seller may disclose such information (A) to its representatives who need to know such
information for purposes of participating in the evaluation, negotiation and/or execution of the
transactions contemplated by this Agreement and the Ancillary Documents so long as such persons are
informed by such Seller of the confidential nature of such information and are directed by such
Seller to treat such information confidentially and (B) to the extent required to defend any claim
asserted against such Seller or assert any claim that may be available to such Seller. The Seller
shall be responsible for any failure to treat such information confidentially by such persons.
Each Seller specifically acknowledges and agrees that (1) this Section 6.4 and each term
hereof are reasonable and necessary to ensure that the Purchaser receives the expected benefits of
acquiring the Shares and the Membership Interests, (2) the Purchaser has refused to enter into this
Agreement in the absence of this Section 6.4 and (3) breach of this Section 6.4
will harm the Purchaser to such an extent that monetary damages alone would be an inadequate
remedy. Therefore, in the event of a breach by any Seller of this Section 6.4, the
Purchaser (in

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addition to all other remedies the Purchaser may have) will be entitled to seek a temporary
restraining order, injunction and other equitable relief (without posting any bond or other
security) restraining the Seller from committing or continuing such breach.

          6.5 Publicity. Except as may be required by applicable Law and regulations, no
Seller Party shall, or shall allow any of its Affiliates, to make any public announcements in
respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any
news media without prior consent of Purchaser. Purchaser shall use reasonable efforts to provide
Sellers’ Representative with prior notice of, and an opportunity to review and comment on, the
initial public announcement of the transactions contemplated hereby, provided that the
timing and contents of such announcement shall remain in Purchaser’s sole discretion.

          6.6 Indemnification of Officers and Directors. For a period of not less than six
years after the Closing, Purchaser shall, and shall cause each Company to, (i) indemnify, defend
and hold harmless the officers, directors, employees and agents of such Company to the fullest
extent permitted under applicable Law against Damages arising out of claims brought or made by
third parties based on the actions of such persons in their capacities as officers, directors,
employees or agents of such Company prior to the Closing, and (ii) maintain in full force and
effect and honor, all obligations to indemnify the officers, directors, employees and agents of
such Company and to advance expenses existing in favor of such persons in effect as of the Closing
Date under the laws of such Company’s jurisdiction of organization or as provided in the
Organizational Documents of such Company or in any written agreement between such Company, on the
one hand, and any such Person, on the other hand.

          6.7 Tax Matters. The following provisions shall govern the allocation of
responsibility as between Purchaser and Sellers for certain tax matters following the Closing Date:

               (a) Tax Periods Ending On or Before the Closing Date. Purchaser shall prepare or
cause to be prepared and file or cause to be filed all Tax Returns for the Companies for all
periods ending on or prior to the Closing Date (the “Pre-Closing Tax Period”) which are
filed after the Closing Date. Purchaser shall permit Sellers’ Representative to review and comment
on each such Tax Return described in the preceding sentence at least 15 days prior to the due date
for such Tax Returns and shall make such revisions to such Tax Returns as are reasonably requested
by Sellers’ Representative. Sellers shall reimburse Purchaser for Taxes of the Companies with
respect to all Pre-Closing Tax Periods. Such reimbursement payment will be made at least 3 days
before payment by Purchaser or the Companies of such Taxes to the extent such Taxes in the
aggregate exceed the aggregate amount of Taxes reflected in Final Net Working Capital.

               (b) Tax Periods Beginning Before and Ending After the Closing Date. Purchaser shall
prepare or cause to be prepared and file or cause to be filed any Tax Returns of the Companies for
Tax periods which begin before the Closing Date and end after the Closing Date. Purchaser shall
permit Sellers’ Representative to review and comment on each such Tax Return described in the
preceding sentence at least 15 days prior to the due date for such Tax Returns and shall make such
revisions to such Tax Returns as are reasonably requested by Sellers’ Representative. Sellers
shall pay to Purchaser within 3 days before the date on which

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Taxes are paid with respect to such periods an amount equal to the portion of such Taxes which
relates to the portion of such Tax period ending on the Closing Date to the extent such Taxes in
the aggregate exceed the aggregate amount of Taxes reflected in the Final Net Working Capital.
For purposes of this Section 6.7, in the case of any Taxes that are imposed on a periodic
basis and are payable for a taxable period that includes (but does not end on) the Closing Date,
the portion of such Tax which relates to the portion of such taxable period ending on the Closing
Date shall (x) in the case of any Taxes other than Taxes based upon or related to income or
receipts, be deemed to be the amount of such Tax for the entire taxable period multiplied by a
fraction the numerator of which is the number of days in the taxable period ending on the Closing
Date and the denominator of which is the number of days in the entire taxable period, and (y) in
the case of any Tax based upon or related to income or receipts be deemed equal to the amount which
would be payable if the relevant taxable period ended on the Closing Date. All determinations
necessary to give effect to the foregoing allocations shall be made in a manner consistent with
prior practice of the applicable Company.

               (c) Cooperation on Tax Matters. Purchaser and the Seller Parties shall cooperate
fully, as and to the extent reasonably requested by the other party, in connection with the filing
of Tax Returns pursuant to this Section 6.7 and any audit, litigation or other proceeding
with respect to Taxes. Such cooperation shall include the retention and (upon the other party’s
request) the provision of records and information which are reasonably relevant to any such audit,
litigation or other proceeding and making employees available on a mutually convenient basis to
provide additional information and explanation of any material provided hereunder. The party that
is liable for the payment of any Taxes under this Agreement shall control such audit, litigation or
other proceeding with respect to such Taxes and shall control the decision as to any settlement.
Such party shall also pay all costs and expenses in connection with such audit, litigation or other
proceeding (including any cost of cooperation of the other party). The Companies and Sellers agree
(i) to retain all books and records with respect to Tax matters pertinent to the Companies relating
to any taxable period beginning before the Closing Date until the expiration of the statute of
limitations (and, to the extent notified by Purchaser or Sellers, any extensions thereof) of the
respective taxable periods, and to abide by all record retention agreements entered into with any
taxing authority, and (ii) to give the other party reasonable written notice prior to transferring,
destroying or discarding any such books and records and, if the other party so requests, the
Companies or Sellers, as the case may be, shall allow the other party to take possession of such
books and records.

               (d) Certain Taxes. 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 the Sellers when due, and the Sellers will, at their 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,
Purchaser will, and will cause its Affiliates to, join in the execution of any such Tax Returns and
other documentation.

               (e) Post-Closing Notification for non-Canadian Sellers. The Purchaser shall complete
a “Notification of an Acquisition of Treaty-Protected Property from a Non-Resident Vendor” form
T2062C with respect to each non-Canadian CA Company Seller that is listed on Section 3.14(i) of
the Disclosure Schedule. Each such Seller shall complete the “Non-

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resident Vendor Certification” Part D of such T2062C. The Purchaser shall file such completed
forms T2062C in respect of each non-Canadian CA Company Seller on or before the date that is 30
days after the Closing Date in the manner required by applicable laws and shall provide each
non-Canadian CA Company Seller with evidence of such timely filing in a form satisfactory to each
such Seller, acting reasonably.

          6.8 Further Assurances. Each party will execute, acknowledge and deliver such
documents and instruments reasonably requested by the other party, and will take any other action
consistent with the terms of this Agreement that may reasonably be requested by the other party,
for the purpose of giving effect to the transactions contemplated by this Agreement.

          6.9 Post-Closing Maintenance of Records. The Purchaser shall: (i) maintain all
books and other records, including without limitation, Tax Returns of the Company (the
“Records”) for 7 years after the Closing Date, (ii) grant the Sellers access to the Records
at any reasonable time, and from time to time, upon request by the Sellers in connection with any
reasonable business purpose; and (iii) permit Sellers to make copies of such Records for the
foregoing purposes, at Sellers’ expense. The Sellers may retain copies of such Records as they
deem necessary after the Closing.

          6.10 Employees and Employee Benefit Plans.

               (a) Purchaser agrees that for a one year period following the Closing it shall, or shall cause
one of its Affiliates to, provide the Affected Employees with employee benefits and compensation
that are substantially comparable in the aggregate either to (i) those provided to other similarly
situated employees of the Purchaser or (ii) those provided as of the Closing Date to the Affected
Employees by the Companies. For purposes of this Agreement, “Affected Employees” shall
mean Employees and former employees of the Companies as of the Closing Date and, if applicable, any
of their dependents, beneficiaries, qualified beneficiaries under COBRA and alternate payees.

               (b) Nothing contained herein shall obligate Purchaser to employ, or offer to employ, or cause
the Companies to continue to employ, any current or former employee of either Company, to retain
any Employees for any specific period, to institute or maintain any levels of compensation or
benefit plans or arrangements, or otherwise to take or continue any actions with respect to the
Employees after the Closing, it being understood that no Employee is intended to or shall receive
by reason of this Agreement, other than by operation of law due to the consummation of the
transactions contemplated herein, any direct or third party beneficiary rights against Purchaser.

               (c) Except as expressly set forth in this Agreement, Purchaser shall have at all times
complete discretion to determine the specific benefit plans, programs, policies and arrangements to
be provided to Employees; however, Employees shall be given credit for purposes of eligibility and
vesting under each employee benefit plan, program, policy or arrangement of Purchaser or any
Affiliate thereof in which the Employees are eligible to participate for all service with the
applicable Company (to the extent such credit was given for a similar purpose by a comparable
employee benefit plan, program, policy or arrangement, if any, of the applicable Company).
Purchaser shall take all reasonable steps to ensure that each

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Employee’s vacation and personal time off accrued through the Closing Date shall continue to
be honored after the Closing Date.

          6.11 Purchaser Shareholder Approval.

               (a) The Seller Parties acknowledge that, in order to issue shares of Purchaser Common Stock
pursuant to Section 2.5 hereof, Purchaser will be required by applicable Law and
regulations (including the Minnesota Business Corporation Act and the rules and regulations of the
SEC and the NASDAQ stock market ) to first obtain the approval of its shareholders (the
“Purchaser Shareholder Approval”) with respect to (i) an amendment to the Purchaser’s
articles of incorporation and (ii) certain other matters in connection with the issuance of such
shares and other matters in connection with the Financing Agreement, as required by the rules and
regulations of the NASDAQ stock market. After the date of this Agreement, Purchaser shall prepare
and cause to be filed with the SEC a proxy statement (the “Proxy Statement”) in connection
with a meeting of Purchaser’s shareholders for the purpose of seeking the Purchaser Shareholder
Approval (the “Purchaser Shareholders Meeting”). Purchaser shall use all reasonable
efforts (i) to cause the Proxy Statement to comply with the rules and regulations promulgated by
the SEC, (ii) to respond promptly to any comments of the SEC on the Proxy Statement, and (iii) to
cause the Proxy Statement to be mailed to Purchaser’s shareholders. The Seller Parties shall use
all reasonable efforts to provide, or assist Purchaser in the preparation of, all information about
the Seller Parties and the transactions contemplated hereby that is required by applicable Law and
regulations (including the Minnesota Business Corporation Act and the rules and regulations of the
SEC and the NASDAQ stock market ) to be included in the Proxy Statement.

               (b) The Purchaser’s board of directors (the “Board”) has determined to recommend that
the Purchaser’s shareholders approve of all matters necessary to give the Purchaser Shareholder
Approval, and to include a statement to that effect in the Proxy Statement and in any additional
soliciting materials relating to the Purchaser Shareholders Meeting (the “Purchaser Board
Recommendation”). The Purchaser will, and will use its best efforts to, within one-hundred
twenty (120) days after the date hereof (and in any event no later than the date of the next annual
meeting of shareholders of the Purchaser), in accordance with its articles of incorporation and
bylaws, and with applicable law (including the Minnesota Business Corporation Act and the rules and
regulations of the SEC and the Nasdaq), duly call, give notice of, and convene and hold the
Purchaser Shareholders Meeting, regardless of whether the Purchaser Board Recommendation is later
withdrawn or modified in a manner adverse to the Purchasers. Except to the extent the Board
determines on advice of counsel to be restricted from doing so by its fiduciary duties to the
shareholders of the Purchaser under applicable law, (i) the Board will include the Purchaser Board
Recommendation in the Proxy Statement and in any additional soliciting materials relating to the
Purchaser Shareholders Meeting, and (ii) the Purchaser Board Recommendation shall not be withdrawn
or modified in a manner adverse to the Purchasers, and no resolution by the Board or any committee
thereof to withdraw or modify the Purchaser Board Recommendation in a manner adverse to the
Purchasers shall be adopted. The Purchaser will use its best efforts to solicit and obtain the
Shareholder Approval.

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          6.12 Covenant Not to Compete.

               (a) Each Seller hereby agrees that, throughout the period that begins on the Closing Date and
ends on the third anniversary of the Closing Date (the “Non-Compete Period), except for the
covenants and restrictions contained in Section 6.12(a)(iv) hereof which will last
indefinitely, such Seller will not at any time directly or indirectly:

                    (i) own, operate, invest in, lend money to, consult with, render services to, act as agent
for, acquire or hold any interest in (i) any business of any nature that competes with any
business owned or operated by the Companies as of the Closing Date or (ii) any corporation,
partnership, association or other entity of any nature that owns, operates or has an interest
in any business described in the immediately preceding clause (i) (except that nothing herein
will prohibit any Seller from owning not more than one percent of the outstanding shares of any
class of stock of a corporation if such class of stock is regularly traded on a recognized
national securities exchange);

                    (ii) solicit, request, advise or induce any present or potential customer, supplier or
other business contact of the Companies to cancel, curtail or otherwise adversely change its
relationship with the Companies;

                    (iii) criticize or disparage in any manner or by any means (whether written or oral,
express or implied) Purchaser, either Company or any aspect of Purchaser’s or the Company’s
management, policies, operations, products, services, practices or personnel; or

                    (iv) use any name to promote a separate business that includes (i) the words “Turnpike” or
“Global” or “Technologies,” or any confusingly similar combination or variation of any of such
words, in any geographical area or (ii) any other name that implies a connection or affiliation
with Purchaser or the Companies.

               (b) The Sellers specifically acknowledge and agree that (1) this Section 6.12 and each
term hereof are reasonable and necessary to ensure that the Purchaser receives the expected
benefits of acquiring the Shares and the Membership Interests, (2) the Purchaser has refused to
enter into this Agreement in the absence of this Section 6.12 and (3) breach of this
Section 6.12 will harm the Purchaser to such an extent that monetary damages alone would be
an inadequate remedy. Therefore, in the event of a breach by any Seller of this Section
6.12, the Purchaser (in addition to all other remedies the Purchaser may have) will be entitled
to seek a temporary restraining order, injunction and other equitable relief (without posting any
bond or other security) restraining the Sellers from committing or continuing such breach.

          6.13 No Shopping. From the date of this Agreement until the earlier of the Closing
or the termination of this Agreement pursuant to Article IX, none of the Seller Parties
will, and the Seller Parties will cause their Affiliates and representatives not to, directly or
indirectly, solicit, encourage, facilitate, participate, or engage in (including by way of
discussions, negotiations, or furnishing any nonpublic information concerning the businesses,
properties, or assets of the Companies), any proposal made by a Person other than the Purchaser

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for a merger or other business combination involving either Company, for the acquisition of
any equity or ownership interest in either Company, or for the acquisition of a substantial portion
of the assets of either Company.

          6.14 Lock-Up and Sale Limitation Agreement. Each Seller agrees that, (i) from the
date the Purchaser Shareholder Approval is obtained, and (ii) from each of the dates upon which the
First Earnout Amount, Second Earnout Amount and Third Earnout Amount are paid (if at all, in each
case), through the 6 month anniversary of each such date (the “Lock-Up Periods”), such
Seller will not, without the prior written consent of Purchaser, (a) offer, sell, contract to sell,
pledge or otherwise dispose of (“Transfer”), directly or indirectly, any shares of
Purchaser Common Stock or securities convertible into or exchangeable or exercisable for any shares
Purchaser Common Stock, (b) enter into a transaction which would have the same effect, or enter
into any swap, hedge or other arrangement that transfers, in whole or in part, any of the economic
consequences of ownership of shares of Purchaser Common Stock, or (c) publicly disclose the
intention to make any such offer, sale, pledge or disposition, or to enter into any such
transaction, swap, hedge or other arrangement; provided however that the Lock-Up Periods set forth
in clause (ii) above shall only apply to the Sellers listed on Exhibit E hereto. Further,
each Seller listed on Exhibit E agrees that, from the expiration of each Lock-Up Period
through the 24 month anniversary of such expiration, such Seller shall not directly or indirectly
Transfer during any continuous three (3) month period a number of shares of Purchaser Common Stock
that exceeds one percent of the Company’s outstanding common stock (as shown on the most recent
report or statement published by the Company as of the date of Transfer)

          6.15 Registration of Purchaser Common Stock. Purchaser shall use its reasonable best
efforts to cause any shares of Purchaser Common Stock issued pursuant to this Agreement to be
registered with the SEC for resale by the CA Company Sellers holding such shares on a registration
statement on Form S-3 (the “Registration Statement”); provided, however,
that the foregoing covenant shall not apply to any shares of Purchaser Common Stock issued pursuant
to this Agreement that may be sold in compliance with Rule 144 following expiration of the Lock-Up
Period.

          6.16 Audit. The Purchaser shall be responsible for payment of the fees and expenses
of the independent auditor incurred in connection with preparation of the Combined Audited
Financial Statements.

          6.17 Financing Agreement. Purchaser shall consummate the transactions contemplated
by the Financing Agreement simultaneously with the Closing hereunder.

ARTICLE VII

CONDITIONS PRECEDENT TO PURCHASER’S PERFORMANCE

          The obligation of Purchaser to consummate the transactions contemplated by this Agreement is
subject to the satisfaction, at or before the Closing Date, of each of the following conditions,
unless waived in writing by Purchaser:

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          7.1 Accuracy of Sellers’ Representations and Warranties. The representations and
warranties of Sellers contained in this Agreement shall be true and correct when made and on and as
of the Closing Date as though made at that time (without regard to any “material,” “materiality” or
“Material Adverse Effect” qualifications included therein (other than defined terms such as
“Material Customers” and “Material Contracts”) and except for those representations and warranties
that speak as to a stated date, in which case such representation shall be true and correct as of
such date), except to the extent that the failure of the representations and warranties of Sellers,
taken as a whole, to be true and correct would not reasonably be expected to have a Material
Adverse Effect, to materially delay the Closing or to materially and adversely affect the ability
of Purchaser or Sellers to consummate the transactions contemplated by this Agreement.

          7.2 Performance of Seller Parties’ Covenants. All covenants, agreements and
obligations required by the terms of this Agreement to be performed, satisfied or complied with by
any Seller Party at or before the Closing Date shall have been duly and properly performed,
satisfied and complied with at or before the Closing Date.

          7.3 No Governmental Order or Adverse Law. There shall not be any applicable Law that
restrains, prohibits or enjoins (whether temporarily, preliminarily or permanently) consummation of
any transaction contemplated herein that has been enacted, issued, promulgated, enforced or
entered. There shall not be any pending or threatened proceeding, order, writ, judgment,
injunction, decree, stipulation, determination or award by any Governmental Authority that seeks to
restrain, prohibit or enjoin (whether temporarily, preliminarily or permanently), or that
reasonably could cause the rescission of, or otherwise challenge the validity of, the consummation
of any transaction contemplated herein.

          7.4 Deliverables. Purchaser shall have received from each Seller each of the
deliverables described in Section 10.2.

          7.5 Contemporaneous Closing. All conditions of closing for the benefit of the
Purchaser under the Frey Purchase Agreement shall have been satisfied or shall have been waived by
it and the transactions contemplated thereby shall have closed as contemplated thereby.

          7.6 No Material Adverse Effect. Since the date of this Agreement, there shall not
have been any Material Adverse Effect.

          7.7 Required Consents. The Sellers shall have obtained and delivered to Purchaser a
written consent to the transactions contemplated by this Agreement, in form and substance
reasonably acceptable to Purchaser, from each of the parties (and with respect to each of the
contracts or other instruments) set forth on Exhibit D.

          7.8 Good Standings. Purchaser shall have been furnished with certificates from
appropriate authorities, dated within 5 days of the Closing Date, as to the good standing of each
Company and each Seller that is not a natural person, in their respective jurisdictions of
incorporation or formation, as applicable.

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ARTICLE VIII

CONDITIONS PRECEDENT TO SELLERS’ PERFORMANCE

          The obligation of Sellers to consummate the transactions contemplated by this Agreement is
subject to the satisfaction, at or before the Closing Date, of each of the following conditions,
unless waived in writing by Sellers:

          8.1 Accuracy of Purchaser’s Representations and Warranties. The representations and
warranties of Purchaser contained in this Agreement shall be true and correct when made and on and
as of the Closing Date as though made at that time (without regard to any “materiality”
qualifications included therein), except to the extent that the failure of the representations and
warranties of Purchaser, taken as a whole, to be true and correct would not reasonably be expected
to materially delay the Closing or to materially and adversely affect the ability of Purchaser to
consummate the transactions contemplated by this Agreement.

          8.2 Performance of Purchaser’s Covenants. All covenants, agreements and obligations
required by the terms of this Agreement to be performed, satisfied or complied with by Purchaser at
or before the Closing Date shall have been duly and properly performed, satisfied and complied with
by Purchaser at or before the Closing Date.

          8.3 No Governmental Order or Adverse Law. There shall not be any applicable Law that
restrains, prohibits or enjoins (whether temporarily, preliminarily or permanently) consummation of
any transaction contemplated herein that has been enacted, issued, promulgated, enforced or
entered. There shall not be any pending or threatened proceeding, order, writ, judgment,
injunction, decree, stipulation, determination or award by any Governmental Authority that seeks to
restrain, prohibit or enjoin (whether temporarily, preliminarily or permanently), or that
reasonably could cause the rescission of, or otherwise challenge the validity of, the consummation
of any transaction contemplated herein.

          8.4 Deliverables. Sellers shall have received from Purchaser each of the
deliverables described in Section 10.3.

ARTICLE IX

TERMINATION PRIOR TO CLOSING

          9.1 Termination. This Agreement and the transactions contemplated hereby may be
terminated at any time prior to Closing:

               (a) By the mutual written consent of Purchaser and Sellers;

               (b) By Purchaser, by prior written notice to the Sellers, if (1) any of the Sellers or either
Company commits a material breach of any of the terms of this Agreement, and (2) such breach is not
cured within 15 days after Purchaser has notified Sellers of its intent to terminate pursuant to
this Section 9.1(b); or

               (c) By Sellers, by prior written notice to Purchaser, if (1) Purchaser commits a material
breach of any of the terms of this Agreement, and (2) such breach is not

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cured within 15 days after the Sellers have notified Purchaser of their intent to terminate
pursuant to this Section 9.1(c).

          9.2 Effect on Obligations. Termination of this Agreement pursuant to Section
9.1 shall terminate all obligations of the parties hereunder, and upon such termination this
Agreement shall become void and have no effect without any liability on the part of any party,
except for the obligations under 6.5 (Publicity), 11.2 (Indemnification
Obligations), and Article XII (Miscellaneous Provisions); provided,
however, that termination shall not relieve any party defaulting or breaching this
Agreement from any liability for such default or breach (or be deemed a waiver of any right of the
non-defaulting or non-breaching party in connection therewith). The exercise of a right of
termination of this Agreement is not an election of remedies.

ARTICLE X

THE CLOSING

          10.1 Closing. Subject to the satisfaction and/or waiver of the conditions set forth
herein, the consummation of the sale and purchase of the Shares and the Membership Interests (the
“Closing”) shall occur on the date hereof following satisfaction and/or waiver of the
conditions to the Closing (other than conditions that by their nature are to be satisfied at
Closing, but subject to the satisfaction or waiver of such conditions at Closing) or on such other
date as may be mutually agreed to by the parties (the “Closing Date”). Closing will be
effective as of 12:01 a.m. on the Closing Date.

          10.2 Sellers’ Obligations. At the Closing, each Seller shall deliver to Purchaser:

               (a) the certificate(s) representing the Shares and the Membership Interests being sold by such
Seller, accompanied by stock or membership interest transfer power(s), as applicable, duly executed
on behalf of such Seller, and otherwise in a form acceptable for transfer on the books of the
applicable Company and approved in advance by the Purchaser (such approval not to be unreasonably
withheld);

               (b) a certificate, dated the Closing Date, from each of the Companies and such Seller, signed
by an authorized officer of each Company and by such Seller (or by an authorized officer of such
Seller, if such Seller is not a natural person), certifying that the conditions specified in
Section 7.1 and Section 7.2 above have been fulfilled;

               (c) a duly executed resignation, effective as of the Closing, from each director of the CA
Company and each director/manager of the US Company;

               (d) the true, correct and complete minute books and ownership records of each Company;

               (e) a certificate of a duly authorized officer of such Seller, if such Seller is not a natural
person, in a form approved in advance by Purchaser (such approval not to be unreasonably withheld),
dated the Closing Date and executed by such officer, certifying (1) that attached thereto is a
true, correct and complete copy of the Organizational Documents of

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such Seller, in each case as are then in full force and effect, (2) that attached thereto is a
true, correct and complete copy of the resolutions of the Board of Directors (or other managing
body) of such Seller authorizing the execution, delivery and performance of this Agreement and each
Ancillary Document of such Seller and the transactions contemplated herein and therein, in each
case as are then in full force and effect, and (3) as to the incumbency and signatures of the
officers or other authorized persons of such Seller;

               (f) a certificate of a duly authorized officer of the CA Company, in a form approved in
advance by Purchaser (such approval not to be unreasonably withheld), dated the Closing Date and
executed by such officer, certifying (1) that attached thereto is a true, correct and complete copy
of the Organizational Documents of the CA Company, in each case as are then in full force and
effect, (2) that attached thereto is a true, correct and complete copy of the resolutions of the
Board of Directors of the CA Company authorizing the execution, delivery and performance of this
Agreement and each Ancillary Document of the CA Company and the transactions contemplated herein
and therein, in each case as are then in full force and effect and (3) as to the incumbency and
signatures of the officers of the CA Company; and

               (g) a certificate of a duly authorized officer of the US Company, in a form approved in
advance by Purchaser (such approval not to be unreasonably withheld), dated the Closing Date and
executed by such officer, certifying (1) that attached thereto is a true, correct and complete copy
of the Organizational Documents of the US Company, in each case as are then in full force and
effect, (2) that attached thereto is a true, correct and complete copy of the resolutions of the
board of directors (or other managing body) of the US Company authorizing the execution, delivery
and performance of this Agreement and each Ancillary Document of the US Company and the
transactions contemplated herein and therein, in each case as are then in full force and effect and
(2) as to the incumbency and signatures of the officers of the US Company.

          10.3 Purchaser’s Obligations. At the Closing, Purchaser shall:

               (a) pay the Closing Cash Amount in accordance with Section 2.3;

               (b) deliver to the Sellers’ Representative a certificate, dated the Closing Date, from
Purchaser and signed by an authorized officer of Purchaser, certifying that the conditions
specified in Section 8.1 and Section 8.2 above have been fulfilled; and

               (c) deliver to the Sellers’ Representative a certificate of a duly authorized officer of
Purchaser in a form approved in advance by Sellers (such approval not to be unreasonably withheld),
dated the Closing Date and executed by such officer, certifying (1) that attached thereto is a
true, correct and complete copy of the Organizational Documents of Purchaser, in each case as are
then in full force and effect, (2) that attached thereto is a true, correct and complete copy of
the resolutions of the Board of Directors of Purchaser, authorizing the execution, delivery and
performance of this Agreement and each Ancillary Document of Purchaser and the transactions
contemplated herein and therein, in each case as are then in full force and effect and (3) as to
the incumbency and signatures of the officers or other authorized persons of Purchaser.

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ARTICLE XI

INDEMNIFICATION

          11.1 Survival of Representations and Warranties. All representations and warranties
under this Agreement shall survive the Closing through September 30, 2010, at which date such
representations and warranties shall terminate; provided, however, that the
representations and warranties set forth in Sections 3.1, 3.2, 3.3,
3.14, 3.21, 4.1, 4.2, 4.3, 4.4, 5.1,
5.2, 5.3, 5.4, and 5.6 (collectively, the “Specified
Representations”) shall survive until the expiration of the applicable statutes of limitations.
For each claim for indemnification under this Agreement regarding a breach of representation or
warranty that is made prior to the expiration of the survival period for such representation or
warranty, such claim and associated right to indemnification will not terminate before final
determination and satisfaction of such claim.

          11.2 Indemnification Obligations.

               (a) Indemnification by Sellers. Sellers shall indemnify and hold harmless Purchaser
and each Company (after Closing) and their respective officers, directors, managers, members, and
employees (collectively, the “Purchaser Indemnified Parties”) from and against, and shall
reimburse the Purchaser Indemnified Parties for, any and all Damages resulting from, arising out
of, based on, or relating to any untruth, inaccuracy or breach of representation, warranty,
covenant, or agreement of the Sellers or either Company in this Agreement, the Disclosure Schedule,
or any Ancillary Document. The indemnification obligations of Sellers hereunder shall be joint and
several; provided, however, that the indemnification obligations of Sellers hereunder shall be
several (not joint and several) with respect to any (i) untruth or inaccuracy of the
representations and warranties set forth in Article IV and (ii) breaches of any covenant or
agreement by a Seller.

               (b) Indemnification by Purchaser. Purchaser shall, and from and after the Closing,
the Companies shall, indemnify and hold harmless Sellers, their Affiliates and any of their
respective officers, directors and employees (collectively, the “Seller Indemnified
Parties”) from and against, and shall reimburse the Seller Indemnified Parties for, any and all
Damages, resulting from, arising out of, based on, or relating to any untruth, inaccuracy or breach
of representation, warranty, covenant, or agreement of Purchaser in this Agreement, the Disclosure
Schedule, or any Ancillary Document.

               (c) Limitations on Liability. Notwithstanding the rights of the Indemnified Parties
to indemnification under this Article XI, and except with respect to claims for fraud or
intentional misrepresentation, or claims for breaches of covenants, an Indemnifying Party’s
indemnification obligations to the Indemnified Party shall be limited as follows:

                    (i) an Indemnifying Party shall only be liable for Damages that are based on an untruth,
inaccuracy or breach of representation or warranty in this Agreement, the Disclosure Schedule or
any Ancillary Document, other than a breach of the Specified Representations (which shall not be so
limited), if and to the extent such Damages exceed $50,000 in the aggregate (the
“Deductible”); provided, however, that if the aggregate amount of such
Damages exceeds the Deductible, then Indemnifying Party will be obligated for all such Damages,
subject to the other terms of this Article XI;

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                    (ii) the aggregate amount of all Sellers’ liability for Damages under this Article XI
on the one hand, and the aggregate amount of Purchaser’s liability for Damages under this
Article XI on the other hand, other than for breaches of the Specified Representations
(which shall not be so limited), shall not exceed the First Earnout Amount (the “Cap”); and

                    (iii) Purchaser’s sole recourse for indemnification claims by it under this Article
XI, except with respect to claims for breaches of the Specified Representations, shall be
pursuant to Section 11.7.

               (d) Claims for Indemnity. Whenever a claim for Damages shall arise for which an
Indemnified Party shall be entitled to indemnification hereunder other than a third party claim
addressed by Section 11.2(e), such Indemnified Party shall notify the Indemnifying Party in
writing within 15 days of the first receipt of notice of such claim, and in any event within such
shorter period as may be necessary for the Indemnifying Party to take appropriate action to resist
such claim. Such notice shall specify in reasonable detail the facts and circumstances known to
the Indemnified Party regarding the claim and shall explain in reasonable detail the basis on which
the Indemnified Party claims a right to indemnity, including citation to relevant sections of this
Agreement, and, if estimable, shall estimate the amount of the liability arising therefrom. The
failure to provide such notice shall not result in a waiver of any right to indemnification
hereunder except to the extent, and only to the extent, the Indemnifying Party is able to
demonstrate it was prejudiced by such failure. If the Indemnifying Party shall be duly notified of
such indemnity claim, the parties shall attempt to settle and compromise the same, or if unable to
do so within 30 days of the Indemnified Party’s delivery of notice of indemnity claim, the parties
may pursue such legal proceedings as may be lawfully available to them. Any rights of
indemnification established by reason of such settlement or proceedings shall thereafter be paid
and satisfied by the Indemnifying Party promptly after such date that the indemnified amount is
finally determined.

               (e) Defense of Third Party Claims. Upon receipt by the Indemnifying Party of a notice
from the Indemnified Party with respect to any claim of a third party against the Indemnified Party
for which the Indemnified Party seeks indemnification hereunder, the Indemnifying Party shall have
the right to assume the defense of such claim, except if (i) the aggregate amount of the potential
obligations of the Indemnified Party regarding such claim is reasonably likely to exceed the
maximum obligations of the Indemnifying Party under this Agreement regarding such claim, or (ii) it
is reasonably likely that such third party claim will adversely affect the Indemnified Party, other
than as a result of money damages. The Indemnifying Parties and the Indemnified Parties shall
cooperate to the extent reasonably requested by the other in defense or prosecution thereof and
shall furnish such records, information and testimony and attend all such conferences, discovery
proceedings, hearings, trials and appeals as may be reasonably requested by the other in connection
therewith. To elect to conduct such defense, the Indemnifying Party must give written notice of
such election to the Indemnified Party within 15 days (or within the shorter period, if any, during
which a defense must be commenced for the preservation of rights) after the Indemnified Party gives
the corresponding initial claim notice to the Indemnifying Party (otherwise, such right to conduct
such defense will be deemed waived). If the Indemnifying Party validly makes such election, it
will nonetheless lose such right to conduct such defense if it fails to continue to actively and

-56-

 

diligently conduct such defense. Also, if the Indemnifying Party validly makes such election,
the Indemnified Party will have the right to employ its own counsel in any such case, but the fees
and expenses of such counsel shall be at the expense of the Indemnified Party (except that the
Indemnifying Party will be responsible for the fees and expenses of the Indemnified Party’s counsel
if the Indemnified Party reasonably concludes that counsel to the Indemnifying Party has a conflict
of interest), and will have the right to receive copies of all notices, pleadings or other similar
submissions regarding such defense. If the Indemnifying Party has assumed the defense of any claim
against the Indemnified Party, the Indemnifying Party will keep the Indemnified Party reasonably
informed of all matters material to such defense and third party claim at all stages thereof, and
there will be no settlement or compromise of such third party claim without the prior written
consent of the Indemnified Party (which consent shall not be unreasonably withheld, conditioned or
delayed). If the Indemnifying Party does not assume the defense of a third party claim and
disputes the Indemnified Party’s right to indemnification, the Indemnified Party shall have the
right to assume control of the defense of such claim through counsel of its choice in any manner
that the Indemnified Party reasonably deems appropriate, the costs of which shall be at the
Indemnifying Party’s expense in the event that the Indemnified Party’s right of indemnification is
ultimately established through settlement, compromise or other legal proceeding. In no
circumstance may the Indemnified Party compromise or settle a claim with a third party for which it
has an established right to indemnification from the Indemnifying Party without first obtaining the
prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld,
conditioned or delayed.

          11.3 Exclusive Remedy. Except for claims for fraud or intentional misrepresentation
or as otherwise expressly provided in this Agreement, the indemnification provided in this
Article XI will constitute the exclusive remedy of the Purchaser Indemnified Parties and
the Seller Indemnified Parties, as the case may be, and their respective successors and assigns,
from and against any and all Damages asserted against, resulting to, imposed upon or incurred or
suffered by, any of them, directly or indirectly, as a result of, or based upon or arising from the
transactions contemplated by this Agreement, including without limitation, any breach of any
representation or warranty herein or the non-fulfillment of any agreement or covenant herein or in
any other agreement, document, or instrument required hereunder.

          11.4 Materiality Qualifiers. For purposes of this Article XI, in determining
the amount of Damages resulting from, arising out of, based on, or relating to an untruth,
inaccuracy or breach of a representation or warranty in this Agreement, the Disclosure Schedule or
any Ancillary Document, all “material,” “materiality” or “Material Adverse Effect” qualifications
included therein will be ignored, and such representation or warranty will for such purpose be read
and interpreted without regard to any such qualification (provided that any such qualification will
be taken into account to determine whether an untruth, inaccuracy or breach of a representation or
warranty has occurred.

          11.5 Effect of Knowledge. No right or obligation under this Article XI will
be waived or otherwise affected by any knowledge of Purchaser or by any investigation, due
diligence or verification by or on behalf of Purchaser on or before the date hereof or at or before
Closing. All representations, warranties, covenants and agreements herein will be deemed to be
relied upon by each party, and none will be waived by any failure to pursue any action or by
consummation of the transactions contemplated herein, except to the extent stated herein.

-57-

 

          11.6 Adjustments to Purchase Price. Any payments made pursuant to this Article
XI shall be consistently treated as adjustments to the Purchase Price for all purposes by
Sellers and Purchaser.

          11.7 Right of Set Off. Purchaser will have the right to set off the amount of any
Damages related to any claim for indemnification under this Agreement against the First Earnout
Amount. Such right of set off will be Purchaser’s sole recourse for indemnification claims by it
under this Article XI, except with respect to claims for breaches of the Specified
Representations.

          11.8 Patent Claims. The parties agree that, notwithstanding anything else contained
in this Agreement, the Sellers shall not have any liability whatsoever to Purchaser or its
affiliates (including liability for Damages, liability under Section 11.2 or otherwise) for
any demand, action, claim, suit or other proceeding brought by any person at any time arising out
of any infringement, misappropriation or violation of any patent by either Company unless, with
respect to such patent proceeding, the Sellers have breached the representations and warranties in
Section 3.5 (Legal Proceedings, Orders and Judgments) or 3.16(b) (Intellectual
Property).

ARTICLE XII

MISCELLANEOUS PROVISIONS

          12.1 Fees and Expenses. Except as otherwise provided herein, Purchaser, on the one
hand, and the Sellers, on the other hand, shall pay all costs and expenses incurred on behalf of
such party(ies) in connection with the negotiation, preparation and execution of this Agreement and
the consummation of the transactions contemplated hereby, including, without limitation, the fees
and expenses of attorneys and accountants; provided, however, that the fees and
expenses incurred by the Companies in connection with the negotiation, preparation and execution of
this Agreement and the consummation of the transactions contemplated hereby, including, without
limitation, the fees and expenses of the Companies’ attorneys and accountants, will be the
responsibility of the Sellers. For the avoidance of doubt, any such fees and expenses incurred by
the Companies, to the extent not paid prior to the Closing Date, shall be included in the
calculation of Working Capital Liabilities (as defined on Exhibit A hereto) for purposes of the
adjustment contemplated by Section 2.4 hereof.

          12.2 Notices. All notices, requests, demands and other communications made under
this Agreement shall be in writing, correctly addressed to the recipient as follows:

	 	 	 
	If to Purchaser (or either Company after
the Closing):

	 	XATA Corporation

965 Prairie Center Drive

Eden Prairie, MN 55344

Attn: Mark Ties

Facsimile No.: (952) 641-5848

-58-

 

	 	 	 
	with a copy to:

	 	Faegre & Benson LLP

2200 Wells Fargo Center

90 South Seventh Street

Minneapolis, Minnesota 55402

Attn: Michael Coddington, Esq.

Facsimile No.: (612) 766-1600
	 
	 	 
	If to Sellers’ Representative:

	 	Brendan Staub

Turnpike Global Technologies Inc.

2401 Bristol Circle, Suite C-100

Oakville, ON L6H 5S9

Facsimile No.: (416) 946-1106
	 
	 	 
	with a copy to:

	 	WeirFoulds LLP

Attn: Ralph Kroman

The Exchange Tower

1600 — 130 King Street West

PO Box 480

Toronto, ON M5X1J5

Facsimile No.: 416-365-1876

Notices, requests, demands and other communications made under this Agreement shall be deemed to
have been duly given (i) upon delivery, if served personally on the party to whom notice is to be
given, (ii) on the date of receipt, refusal or non-delivery indicated on the receipt if mailed to
the party to whom notice is to be given by registered or certified, postage prepaid or by air
courier, or (iii) upon confirmation of transmission, if sent by facsimile. Any party may give
written notice of a change of address in accordance with the provisions of this Section
12.2 and after such notice of change has been received, any subsequent notice shall be given to
such party in the manner described at such new address.

          12.3 Schedules. The inclusion of any information in any Schedule attached hereto
will not be deemed an admission or acknowledgment, in and of itself and solely by virtue of the
inclusion of such information in such Schedule, that such information is required to be listed in
such Schedule. The headings, if any, of the individual sections of the Schedules are inserted for
convenience only and will not be deemed to constitute a part thereof or a part of this Agreement.
The Schedules are arranged in sections corresponding to the sections of this Agreement for
convenience, and the disclosure of an item in one Schedule as an exception to a particular
covenant, representation or warranty will be deemed disclosed as an exception with respect to all
other covenants, representations or warranties to the extent that the relevance of such item to
such other covenants, representations or warranties is reasonably apparent on the face of such
item.

          12.4 Entire Agreement. This Agreement, together with the Disclosure Schedule, and
the Standard Non-Disclosure Agreement, dated July 1, 2009, between Purchaser and the Companies,
sets forth the entire agreement between the parties with regard to the subject

-59-

 

matter hereof, and supersedes all other prior agreements and understandings, written or oral,
between the parties or any of their respective Affiliates with respect to such subject matter.

          12.5 Governing Law. The validity, construction and performance of this Agreement,
and any action arising out of or relating to this Agreement shall be governed by the Laws of the
State of Minnesota, without regard to the Laws of such State as to choice or conflict of Laws.

          12.6 Waiver and Amendment. This Agreement may be amended, supplemented, modified
and/or rescinded only through an express written instrument signed by all parties or their
respective successors and permitted assigns. Any party may specifically and expressly waive in
writing any portion of this Agreement or any breach hereof, but only to the extent such provision
is for the benefit of the waiving party, and no such waiver shall constitute a further or
continuing waiver of any preceding or succeeding breach of the same or any other provision. The
consent by one party to any act for which such consent was required shall not be deemed to imply
consent or waiver of the necessity of obtaining such consent for the same or similar acts in the
future, and no forbearance by a party to seek a remedy for noncompliance or breach by another party
shall be construed as a waiver of any right or remedy with respect to such noncompliance or breach.

          12.7 Assignment. Except as specifically provided otherwise in this Agreement,
neither this Agreement nor any interest herein shall be assignable (voluntarily, involuntarily, by
judicial process, operation of Law or otherwise), in whole or in part, by any party without the
prior written consent of the other party, and any such attempted assignment shall be null and void.

          12.8 Successors and Assigns. Each of the terms, provisions and obligations of this
Agreement shall be binding upon, shall inure to the benefit of, and shall be enforceable by the
parties and their respective legal representatives, successors and permitted assigns.

          12.9 No Third Party Beneficiaries. Except as otherwise specifically set forth
herein, nothing in this Agreement will be construed as giving any Person, other than the parties to
this Agreement and their successors and permitted assigns, any right, remedy or claim under, or in
respect of, this Agreement or any provision hereof; provided, however, that, for greater certainty,
it is acknowledged that, for purposes of the indemnification protection afforded by Article XI
hereof, the Purchaser is entering into this Agreement on its own behalf and as agent and trustee
for the other Purchaser Indemnified Parties and each of the Sellers is entering into this Agreement
on its own behalf and as agent and trustee for the Seller Indemnified Party(ies) with which it is
associated.

          12.10 Sellers’ Representative. Each Seller hereby appoints the Sellers’
Representative as his or her attorney-in-fact, authorizing him to act on such Seller’s behalf to
supervise the Closing on behalf of the Sellers, to execute and deliver any Ancillary Documents and
any instruments of transfer or other documents required of the Sellers and to receive all documents
to be delivered by Purchaser at the Closing, to take all actions (including giving any approvals or
consents) and make all decisions contemplated by this Agreement (whether to be given before or
after Closing), and take any other action permitted or required by this Agreement

-60-

 

or any Ancillary Document to be taken on behalf of the Sellers or any particular Seller, and
to administer all other matters related hereto. The Sellers’ Representative may be removed or
replaced by one or more Sellers who together, as of the date hereof, hold a majority of the
outstanding common stock of the CA Company; provided, that Purchaser consents to such
replacement Sellers’ Representative, which consent will not be unreasonably withheld. Each of the
Sellers hereby agrees that (i) the Sellers’ Representative shall not have any liability to any of
the other Sellers for any actions or omissions in connection with serving as the Sellers’
Representative absent willful misconduct or gross negligence; (ii) Purchaser and its Affiliates
shall have no liability to the Sellers for any actions or omissions of the Sellers’ Representative
and Purchaser shall be entitled to rely upon any action, decision or direction taken, omitted to be
taken or given by the Sellers’ Representative without further action or inquiry; and (iii) any
requirement (under this Agreement or any Ancillary Documents) that Purchaser make delivery to one
or more Sellers shall be deemed satisfied by delivery to the Sellers’ Representative. Each of the
CA Company Sellers agrees to reimburse the Sellers’ Representative for his, her or its pro rata
portion of any costs or expenses incurred by Sellers’ Representative in connection with serving as
the Sellers’ Representative, in each case based on such CA Company Seller’s Proportionate Interest.

          12.11 Severability. It is the desire and intent of the parties that the provisions
of this Agreement be enforced to the fullest extent permissible under the Law and public policies
applied in each jurisdiction in which enforcement is sought. Accordingly, if any term or provision
of this Agreement, or the application thereof to any Person or circumstance, is adjudicated by a
court of competent jurisdiction to be invalid, prohibited or unenforceable in any jurisdiction: (i)
a substitute and equitable provision shall be substituted therefor in order to carry out, so far as
may be valid and enforceable in such jurisdiction, the intent and purpose of the invalid,
prohibited or unenforceable provision; and (ii) the remainder of this Agreement and the application
of such provision to other persons or circumstances shall not be affected by such invalidity,
prohibition or unenforceability, nor shall such invalidity, prohibition or unenforceability of such
provision affect the validity or enforceability of such provision, or the application thereof, in
any other jurisdiction.

          12.12 No Presumption. This Agreement shall be construed without regard to any
presumption or rule requiring construction or interpretation against the party drafting or causing
any instrument to be drafted.

          12.13 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 a single
agreement.

          12.14 Facsimile Signatures. This Agreement and any other document or agreement
executed in connection herewith may be executed by delivery of a facsimile copy of an executed
signature page with the same force and effect as the delivery of an originally executed signature
page.

-61-

 

          12.15 Waiver of Jury Trial. EACH PARTY HEREBY EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE
TO A JURY TRIAL IN ANY PROCEEDING EXISTING UNDER OR RELATING TO THIS AGREEMENT OR ANY ANCILLARY
DOCUMENT.

[The remainder of this page has been intentionally left blank. Signature page follows.]

-62-

 

[Signature page to Equity Purchase Agreement]

          IN WITNESS WHEREOF, each of the parties has executed this Agreement as of the date first set
forth above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	PURCHASER:	 	 	 	SELLERS’ REPRESENTATIVE:	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XATA CORPORATION	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Wesley Fredenburg	 	 	 	By:	 	/s/ Brendan Staub	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Wesley Fredenburg
	 	 	 	 	 	Name:
	 	Brendan Staub	 	 
	 

	 	Title:
	 	General Counsel
and Secretary	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	THE CA COMPANY:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TURNPIKE GLOBAL TECHNOLOGIES INC.	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Colin Warkentin	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Colin Warkentin	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	President	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	THE US COMPANY:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TURNPIKE GLOBAL TECHNOLOGIES LLC	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Brendan Staub	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Brendan Staub	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	President and CEO	 	 	 	 	 	 	 	 	 	 

 

 

[Signature page to Equity Purchase Agreement (continued)]

EACH OF THE SELLERS ACKNOWLEDGES AND AGREES THAT WEIRFOULDS LLP ACTS ONLY FOR TURNPIKE GLOBAL
TECHNOLOGIES INC. AND TURNPIKE GLOBAL TECHNOLOGIES LLC REGARDING THIS AGREEMENT. WEIRFOULDS LLP
DOES NOT REPRESENT ANY OF THE SELLERS OR THE SELLERS’ REPRESENTATIVE WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER MATTERS. EACH OF THE SELLERS AND THE SELLERS’ REPRESENTATIVE ACKNOWLEDGES THAT
WEIRFOULDS LLP HAS RECOMMENDED THAT EACH SUCH PERSON OBTAIN INDEPENDENT LEGAL ADVICE AND, IF SUCH
PERSON HAS NOT DONE SO, SUCH PERSON HEREBY WAIVES HIS, HER OR ITS RIGHT TO INDEPENDENT LEGAL
ADVICE.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CA COMPANY SELLERS:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BUFFALO CITY CENTER LEASING LLC	 	 	 	ONTARIO JV HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Jim Williams	 	 	 	By:	 	/s/ Jim Williams	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Jim Williams
	 	 	 	 	 	Name:
	 	Jim Williams	 	 
	 

	 	Title:
	 	President
	 	 	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	REBEL YOUTH PRODUCTIONS (2006) INC.	 	 	 	DUKE CAPITAL HOLDINGS, LLC	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Luke Metcalf	 	 	 	By:	 	/s/ Brendan Staub	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Luke Metcalf
	 	 	 	 	 	Name:
	 	Brendan Staub	 	 
	 

	 	Title:
	 	President
	 	 	 	 	 	Title:
	 	President	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Colin David Warkentin	 	 	 	/s/ Mark Cunningham	 	 
	 	 	 	 	 	 	 
	Colin David Warkentin	 	 	 	Mark Cunningham	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Rakinder Kalirai	 	 	 	/s/ Peter Blair	 	 
	 	 	 	 	 	 	 
	Rakinder Kalirai	 	 	 	Peter Blair	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Emily Carry	 	 	 	/s/ Steve Massey	 	 
	 	 	 	 	 	 	 
	Emily Carry	 	 	 	Steve Massey	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Narinder Bhogal	 	 	 	/s/ Rita Asturi	 	 
	 	 	 	 	 	 	 
	Narinder Bhogal	 	 	 	Rita Asturi	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/ Chris Sekula	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Chris Sekula	 	 	 	 	 	 	 	 	 	 

 

 

[Signature page to Equity Purchase Agreement (continued)]

EACH OF THE SELLERS ACKNOWLEDGES AND AGREES THAT WEIRFOULDS LLP ACTS ONLY FOR TURNPIKE GLOBAL
TECHNOLOGIES INC. AND TURNPIKE GLOBAL TECHNOLOGIES LLC REGARDING THIS AGREEMENT. WEIRFOULDS LLP
DOES NOT REPRESENT ANY OF THE SELLERS OR THE SELLERS’ REPRESENTATIVE WITH RESPECT TO THIS AGREEMENT
OR ANY OTHER MATTERS. EACH OF THE SELLERS AND THE SELLERS’ REPRESENTATIVE ACKNOWLEDGES THAT
WEIRFOULDS LLP HAS RECOMMENDED THAT EACH SUCH PERSON OBTAIN INDEPENDENT LEGAL ADVICE AND, IF SUCH
PERSON HAS NOT DONE SO, SUCH PERSON HEREBY WAIVES HIS, HER OR ITS RIGHT TO INDEPENDENT LEGAL
ADVICE.

	 	 	 	 	 	 	 	 	 	 	 
	CA COMPANY SELLERS (continued):	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Anthony Nanula	 	 	 	/s/ Brad Georgal	 	 
	 	 	 	 	 	 	 
	Anthony Nanula	 	 	 	Brad Georgal	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Chris DiLalla	 	 	 	/s/ James F. Williams	 	 
	 	 	 	 	 	 	 
	Chris DiLalla	 	 	 	James F. Williams	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Bob Stolfo	 	 	 	/s/ Dave Decicco	 	 
	 	 	 	 	 	 	 
	Bob Stolfo	 	 	 	Dave Decicco	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	STEVEN LINDSAY & LYNNE RYAN (JOINTLY)	 	 	 	GORDON FORBES & LINDA FORBES (JOINTLY)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Steven Lindsay	 	 	 	/s/ Gordon Forbes	 	 
	 	 	 	 	 	 	 
	Steven Lindsay	 	 	 	Gordon Forbes	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Lynne Ryan	 	 	 	/s/ Linda Forbes	 	 
	 	 	 	 	 	 	 
	Lynne Ryan	 	 	 	Linda Forbes	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	US COMPANY SELLERS:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	TURNPIKE HOLDINGS INC.	 	 	 	/s/ Brendan Staub	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	Brendan Staub
	 	 
	By:	 	/s/ Brendan Staub	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Brendan Staub
	 	 	 	/s/ Derek Staub	 	 
	 

	 	Title:
	 	President
	 	 	 	 
Derek Staub

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