Document:

EX-4.52 Second Preferred Mortgage

Exhibit 4.52

SECOND PREFERRED MORTGAGE

 

 

by

 

ADVENTURE THREE S.A.

as mortgagor

 

in favour of

 

HOLLANDSCHE BANK-UNIE N.V.

as mortgagee

 

 

DATED the _____ day of March 2008

 

 

- relating to -

m.v. “FREE ENVOY”

 

NAUTADUTILH N.V.

ROTTERDAM

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Clause	 	Heading	 	Page
	1.

	 	Interpretation
	 	 	2	 
	2.

	 	Representations and warranties
	 	 	8	 
	3.

	 	Payment covenants
	 	 	9	 
	4.

	 	Charging Clause
	 	 	9	 
	5.

	 	Continuing security and other provisions
	 	 	10	 
	6.

	 	Covenants
	 	 	11	 
	7.

	 	Powers of Mortgagee to protect security and remedy defaults
	 	 	22	 
	8.

	 	Events of Default
	 	 	23	 
	9.

	 	Enforceability and Mortgagee’s powers
	 	 	27	 
	10.

	 	Application of Moneys
	 	 	28	 
	11.

	 	Omissions or Delay
	 	 	29	 
	12.

	 	Delegation of Powers
	 	 	29	 
	13.

	 	Indemnity
	 	 	29	 
	14.

	 	Power of Attorney
	 	 	30	 
	15.

	 	Further Assurance
	 	 	30	 
	16.

	 	Total amount;
	 	 	31	 
	17.

	 	Partial Invalidity
	 	 	31	 
	18.

	 	Notices
	 	 	31	 
	19.

	 	Law and jurisdiction
	 	 	32	 

 

 

THIS SECOND PREFERRED MORTGAGE is made the ___day of March 2008

BY:

ADVENTURE THREE S.A., a company incorporated and existing under the laws of the Marshall Islands,
having its registered office at Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960
(the “Mortgagor”)

IN FAVOUR OF:

HOLLANDSCHE BANK-UNIE N.V., a company incorporated and existing under the laws of the Netherlands,
having its registered office at Coolsingel 104, 3011 AG Rotterdam, the Netherlands (the
“Mortgagee”);

WHEREAS:

	(1)	 	the Mortgagor is the sole, absolute, legal and beneficial owner of the vessel described and
defined in clause 1.1;
	 
	(2)	 	by, and subject to and upon the terms and conditions of (i) a credit agreement signed by the
Mortgagee on the 24th day of June 2004 and signed by the Mortgagor on the 8th day
of July 2004 and in which Adventure One S.A. assumed joint and several liability towards the
Mortgagee for all sums which Mortgagor will owe to the Mortgagee under the credit agreement
from time to time, (ii) a short-term loan agreement dated the 8th day of July 2004 and made
between the Mortgagor and the Mortgagee, (iii) a credit agreement signed by the Mortgagee and
the Borrowers (as hereinafter defined) on the 21st day of January 2008 and (iv) a
short term loan agreement dated the 21st day of January 2008 (together as the same
may be amended, supplemented or varied from time to time together with the therein referred to
HBU General Banking Conditions of 1995 and HBU General Credit Provisions of July 2006 the
“Financial Agreement”, a copy of which is annexed hereto as Exhibit A, B, C and D) the
Mortgagee agreed to make available to the Borrowers (as hereinafter defined) as joint and
several obligors:

	 	(i)	 	an overdraft facility in the amount of USD 3,100,000 (three million
one hundred thousand United States Dollars) (“Overdraft I”);
	 
	 	(ii)	 	and overdraft facility in the amount of USD 1,500,000 (one million
five hundred thousand United States Dollars (“Overdraft II”);
	 
	 	(iii)	 	an overdraft facility in the amount of USD 3,000,000 (three million
United States Dollars) (“Overdraft III”); and
	 
	 	(iv)	 	an eight year roll-over loan facility in the amount of USD 27,000,000
(twenty-seven million United States Dollars) (“the Roll-Over Loan”)
(Overdraft I, Overdraft II, Overdraft III and the Roll-Over Loan together hereinafter
referred to as the “Facility”);

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	(3)	 	it is a condition of the Financial Agreement that the Mortgagor shall execute in favour of
the Mortgagee a second preferred mortgage over the Vessel (as hereinafter defined) for
securing the Outstanding Indebtedness (as hereinafter defined) in the form herein set out;
	 
	(4)	 	the Mortgagor in order to secure the repayment of the Facility and the payment of interest
thereon and all other sums of moneys from time to time owing to the Mortgagee under the
Financial Agreement and the performance and observance of and compliance with by the Mortgagor
of all the covenants, terms and conditions contained in the Financial Agreement and this
Mortgage, has duly authorized the execution and delivery of this Second Preferred Mortgage
under and pursuant to Chapter 3 of the Maritime Act, 1990 of the Republic of the Marshall
Islands (as amended) which is executed by the Mortgagor in consideration of the Mortgagee
making available the Facility.

NOW THIS MORTGAGE PROVIDES as follows:

	1.	 	Interpretation
	 
	1.1	 	In this Mortgage unless the context otherwise requires:
	 
	 	 	“Borrowers” means the Mortgagor, Adventure Two S.A. and Adventure Seven S.A., all
of Majuro, Marshall Islands;
	 
	 	 	“Business Day” means a day on which the banks are open for business in Amsterdam
and New York (whichever is applicable) for all kinds of business as contemplated herein
and/or the Financial Agreement;
	 
	 	 	“DOC” means a document of compliance issued to an Operator in accordance with the
ISM Code;
	 
	 	 	“Dollars” and “USD” means the lawful currency of the United States of
America;
	 
	 	 	“Earnings” means all moneys whatsoever from time to time due or payable actually
or contingently to the Mortgagor arising out of the use or operation of the Vessel,
including without limitation all freight, hire and passage moneys, moneys arising under
any contract or other agreement or arrangement with any operator, income arising under
pooling arrangements, compensation payable to

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	 	 	the Mortgagor as a result of, or otherwise in connection with, the requisition of the
Vessel for hire, remuneration for salvage and towage services, demurrage and detention
moneys, and all damages for breach, and all payments for, or otherwise in connection with
any variation or termination of any charterparty, contract or other agreement or
arrangement in respect of, or otherwise in connection with the employment of the Vessel;
	 
	 	 	“Environmental Approvals” means any and all consents, approvals, licences,
permits, exemptions or authorisations required under applicable Environmental Laws;
	 
	 	 	“Environmental Claim” means:

	 	(a)	 	any and all enforcement, clean-up, removal or other governmental, judicial
or regulatory action or order or claim instituted or made pursuant to any
Environmental Law or resulting from a Spill ; or
	 
	 	(b)	 	any claim made by any other party howsoever relating to a Spill;

	 	 	“Environmental Incident” means any Spill:

	 	(a)	 	from the Vessel;
	 
	 	(b)	 	from a vessel other than the Vessel in circumstances where:

	 	(i)	 	the Vessel or the Mortgagor, the Operator or the Manager
may be liable for Environmental Claims arising from the Spill (other than
the Environmental Claims arising and fully satisfied before the date of this
Mortgage); and/or
	 
	 	(ii)	 	the Vessel may be arrested or attached in connection with
any Environmental Claim arising from such Spill;

	 	 	“Environmental Law” means any and all national and international and state laws,
rules, regulations, treaties, conventions and agreements whatsoever relating to the
pollution or protection of human health or environment (including, without limitation the
United States Oil Pollution Act of 1990 and any comparable laws of the individual States
of the United States of America);
	 
	 	 	“Environmentally Sensitive Material” means pollutions, contaminants, toxic
substances, oil and its products and all hazardous substances and any other substance
whose release into the environment is regulated, prohibited or
penalised by or pursuant to any Environmental Law;

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	 	 	“Event of Default” means any one of the events of default specified and referred
to in the Financial Agreement and/or clause 8;
	 
	 	 	“Facility” has the meaning given in recital (2) hereto;
	 
	 	 	“Financial Agreement” has the meaning given in recital (2) hereto;
	 
	 	 	“Insurances” means all policies and contracts of insurance, including without
limitation all entries of the Vessel in a protection and indemnity or war risks
association which are from time to time in place or taken out or entered into by or for
the benefit of the Mortgagor in respect of, or otherwise in connection with, the Vessel
and/or her Earnings or any part thereof and all the benefits thereof, including without
limitation all claims of whatsoever nature and all return of premiums;
	 
	 	 	“ISM Code” means the International Safety Management Code for the Safe Operation
of Ships and for Pollution Prevention (as amended, including any regulation issued
thereunder), as adopted by the Assembly of the International Maritime Organisation on 4
November 1993 by resolution A.741 (18) and incorporated on 19 May 1994 as chapter IX of
the Safety of Life at Sea Convention 1974;
	 
	 	 	“ISPS Code” means the International Ship and Port Facility Security Code (as
amended, including any regulation issued thereunder), as adopted by the Assembly of the
International Maritime Organisation;
	 
	 	 	“ISSC” means an international ship security certificate issued in respect of the
Vessel in accordance with the ISPS Code;
	 
	 	 	“Major Casualty Amount” means USD 200,000 (two hundred thousand Dollars) or the
equivalent thereof in any other currency;

	 
	 	 	“Management Agreement” means the agreement dated 1 July 2004 and made between the
Mortgagor and the Manager regarding the management of the Vessel;
	 
	 	 	“Manager” means FREE BULKERS S.A. or such other manager of the Vessel as approved
by the Mortgagee in writing;

4

 

	 	 	“Material Adverse Change” means (a) any material adverse change in the business,
assets, condition (financial or otherwise), operations, performance or
prospects of the Mortgagor or any of the other Security Parties, (b) any material adverse
effect on the ability of the Mortgagor or any of the other Security Parties to perform any
of its obligations under any of the Security Documents to which it is a party or (c) any
material adverse effect on the validity, binding nature, or enforceability of any of the
Security Documents;
	 
	 	 	“Operator” means any entity who is at any time during the Security Period
concerned in the operation of the Vessel and falls within the definition of “Company” set
out in the ISM Code;
	 
	 	 	“Outstanding Indebtedness” means (a) the aggregate of all sums of money actual or
contingent, present or future due by the Borrowers as joint and several obligors to
the Mortgagee under or in connection with the Security Documents or any of them and
(b) all costs and expenses incurred in connection with the Security Documents,
including any taxes payable by the Mortgagee (other than on net profit), as well as
any reasonable costs and expenses incurred by the Mortgagee in connection with the
Mortgagor’s failure to comply with or fulfil any obligation under the Security
Documents at the time and in the manner required, including collection charges,
disbursements, fees of legal consultants and other experts and costs of proceedings,
irrespective against whom brought;
	 
	 	 	“Overdraft I” has the meaning given in recital (2) hereto;
	 
	 	 	“Overdraft II” has the meaning given in recital (2) hereto;
	 
	 	 	“Overdraft III” has the meaning given in recital (2) hereto;
	 
	 	 	“Pollutant” means and includes oil and its products, any other polluting, toxic or
hazardous substance and any other substance whose release into the environment is
regulated or penalised by Environmental Laws;
	 
	 	 	“Requisition Compensation” means all moneys or other compensation payable by
reason of requisition for title or other compulsory acquisition of the Vessel otherwise
than by requisition for hire;
	 
	 	 	“Roll-Over Loan” has the meaning given in recital (2) hereto;
	 
	 	 	“Security Documents” means the Financial Agreement, this Mortgage and any other
such document as may be executed from time to time to secure and/or regulate the
Outstanding Indebtedness;

5

 

	 	 	“Security Interest” means a mortgage, charge (whether fixed or floating), pledge,
lien, hypothecation, assignment or other security interest or arrangement of any kind
whatsoever;
	 
	 	 	“Security Parties” means the Borrowers and any other party to the Security
Documents other that the Mortgagee at any relevant time;
	 
	 	 	“Security Period” means the period commencing on the date of this Mortgage and
terminating on the date upon which all moneys payable or to become payable from time to
time pursuant to the terms of the Financial Agreement, this Mortgage and/or any of the
other Security Documents shall have been paid and discharged in full;
	 
	 	 	“SMC” means a safety management certificate issued in respect of the Vessel in
accordance with the ISM Code;
	 
	 	 	“Spill” means any actual or threatened emission, spill, release or discharge of a
Pollutant into the environment;
	 
	 	 	“Total Loss” means:

	 	(a)	 	actual or constructive or compromised or arranged total loss of the Vessel;
	 
	 	(b)	 	requisition for title or other compulsory acquisition of the Vessel
otherwise than by requisition for hire;
	 
	 	(c)	 	capture seizure arrest detention or confiscation of the Vessel by any
government or entity or individual acting or purporting to act on behalf of any
government unless the Vessel be released and restored to the Mortgagor from such
capture seizure arrest detention or confiscation within thirty (30) days after the
occurrence thereof;

	 	 	“Vessel” means the Marshall Islands flag vessel “FREE ENVOY” with Official Number
2161, Call Sign V7GR6, gross tonnage approximately 15715, net tonnage approximately 9106,
built in Ehime, Japan, and includes her engines, machinery, boats, tackle, outfit,
equipment, spare gear, fuel, consumable or other stores, belongings and appurtenances
whether on board or ashore and whether now owned or hereafter required.

6

 

	1.2	 	In clause 6.1:
	 
	 	 	“excess risks” means the proportion (if any) of claims for general average and
salvage charges and under the Institute Collision Clause not recoverable in consequence of
the value at which a vessel is assessed for the purpose of such claims exceeding her
insured value;
	 
	 	 	“protection and indemnity risks” means the usual risks (including pollution and a
Freight Demurrage and Defence cover) covered by a protection and indemnity association
including the proportion (if any) not recoverable in case of collision under the Institute
Collision Clause;
	 
	 	 	“war risks” includes the risks of mines and all risks excluded from the standard
form of English marine policy by the Institute War Exclusion Clause.
	 
	1.3	 	This Mortgage shall be read together with the Financial Agreement, but in the case of
conflict between the two instruments the provisions of the Financial Agreement shall prevail
in as far as it does not contravene the laws of the Marshall Islands.
	 
	1.4	 	In this Mortgage:

	 	(a)	 	clause headings are inserted for convenience of reference only and shall be
ignored in the interpretation of this Mortgage;
	 
	 	(b)	 	unless the context otherwise requires, words denoting the singular number
shall include the plural and vice versa;
	 
	 	(c)	 	references to clauses and schedules shall be construed as references to
clauses of and schedules to this Mortgage;
	 
	 	(d)	 	an “entity” shall be construed to include any firm, company, association,
partnership (whether or not having separate legal personality), institution,
government (local, national or supranational), state, agency or sub division thereof
or international organisation;
	 
	 	(e)	 	reference to any document including this Mortgage shall be construed as
reference to such document as amended supplemented or varied from time to time; and
	 
	 	(f)	 	the Mortgagee, the Mortgagor, the Borrowers, the Security Parties and any other
entity or individual shall include their respective successors
in title, estates and, in the event of an assignment permitted under this
Mortgage, assignees.

7

 

	2. 	 	Representations and warranties
	 
	2.1	 	The Mortgagor hereby represents and warrants to the Mortgagee that:

	 	(a)	 	Entitlement to grant Mortgage
	 
	 	 	 	it is fully entitled to grant this Mortgage and further to agree and perform the
terms and conditions hereof and that such granting and performance will not
cause the Mortgagor to be in breach of any agreement to which it is a party;
	 
	 	(b)	 	Ownership of Vessel
	 
	 	 	 	it is the sole, absolute, legal and beneficial owner of the Vessel;
	 
	 	(c)	 	Charter and sharing Earnings
	 
	 	 	 	the Vessel is not subject to any charter which, if entered into after the date of
this Mortgage, would have required the consent of the Mortgagee under clause
6.1(k) and there is no existing agreement or arrangement whereby the Earnings
may be shared with any other entity or individual;
	 
	 	(d)	 	Security Interest
	 
	 	 	 	the Vessel is not subject to any Security Interest (save as constituted by the
Security Documents or otherwise permitted by the terms thereof); and
	 
	 	(e)	 	DOC, SMC and ISSC
	 
	 	 	 	the Operator has obtained and maintains a DOC (a true copy of which has been
delivered to the Mortgagee) and has obtained and maintains a SMC and an ISSC
(true copies of which have been delivered to the Mortgagee) in respect of the
Vessel, all are in full force and effect and nothing has happened which might
cause any of them to be withdrawn, suspended, cancelled or modified.

8

 

	2.2	 	The Mortgagor hereby further represents and warrants to the Mortgagee that:

	 	(a)	 	all applicable Environmental Laws and Environmental Approvals relating to
the Vessel, its operation and management and the business of the Mortgagor (as now
conducted and as reasonably anticipated to be conducted in the future) have been
complied with;
	 
	 	(b)	 	no Environmental Claim has been made or threatened or is pending against
the Mortgagor, the Manager or otherwise in connection with the Vessel and not fully
satisfied; and
	 
	 	(c)	 	no Environmental Incident has occurred.

	3.	 	Payment covenants
	 
	 	 	The Mortgagor hereby covenants duly to observe and perform all its obligations under the
Financial Agreement in accordance with the terms and conditions thereof and in
particular:

	 	(a)	 	to repay the Facility by the instalments and on the dates referred to and
otherwise in the manner and upon the terms set out in the Financial Agreement;
	 
	 	(b)	 	to pay interest on the Facility and on other moneys payable under the
Financial Agreement at the rate or rates from time to time applicable thereto in the
manner and upon the terms set out in the Financial Agreement;
	 
	 	(c)	 	to pay all other moneys payable by the Mortgagor under or in connection
with the Security Documents or any of them at the times and in the manner therein
specified.

	4. 	 	Charging Clause
	 
	4.1	 	In pursuance of the Financial Agreement and in consideration of the premises and by way of
security for payment of the Outstanding Indebtedness and the performance of the obligations
under the Financial Agreement, this Mortgage and the other Security Documents by the Borrowers
as joint and several obligors, the Mortgagor as legal and beneficial owner with full
title guarantee hereby mortgages and charges and agrees to mortgage and charge to and
in favour of the Mortgagee all its right, title and interest (present and future) to and in
the Vessel TO HAVE AND HOLD the same unto and in favour of the Mortgagee forever upon the
terms set forth in this Mortgage to secure the

9

 

	 	 	Outstanding Indebtedness and further to secure the performance and observance of and the
compliance with the covenants, terms and conditions in the Financial Agreement, this
Mortgage and the other Security Documents contained.
	 
	4.2	 	Notwithstanding anything to the contrary in this Mortgage it is not intended that any
provision of this Mortgage shall waive the preferred status of this Mortgage and that if any
provision or part thereof in this Mortgage shall be construed as waiving the preferred status
of this Mortgage, then such provisions shall to such extent be void and of no effect.
	 
	4.3	 	The Mortgagor shall remain liable to perform all the obligations assumed by it in relation to
the Vessel and the Mortgagee shall not be under any obligation of any kind whatsoever in
respect thereof or be under any liability whatsoever in event of any failure by the Mortgagor
to perform its obligations in respect thereof.
	 
	5.	 	Continuing security and other provisions
	 
	 	 	It is declared and agreed that:

	 	(a)	 	the security created by this Mortgage and the other Security Documents
shall be held by the Mortgagee as a continuing security for the payment of the
Outstanding Indebtedness and the performance and observance of and compliance with
all obligations of the Mortgagor under the Security Documents or any of them, express
or implied;
	 
	 	(b)	 	the security so created shall not be satisfied by any intermediate payment
or satisfaction of any part of the Outstanding Indebtedness and shall be in addition
to and shall not in any way prejudice or affect and may be enforced by the Mortgagee
without prior recourse to the security created by any other of the Security Documents
or by any other security now or hereafter held by the Mortgagee and shall not in any
way be prejudiced or affected thereby or by the invalidity or unenforceability
thereof or by the Mortgagee releasing, modifying or refraining from perfecting or
enforcing any of the same or granting time or indulgence or compounding with any
liable entity or individual;

10

 

	 	(c)	 	all the rights, remedies and powers vested in the Mortgagee under this
Mortgage shall be in addition to and not a limitation of any and every
other right, power or remedy vested in the Mortgagee under any other of the
Security Documents or at law (whether Marshall Islands or otherwise) and that all
the powers so vested in the Mortgagee may be exercised from time to time and as
often as the Mortgagee may deem expedient; and
	 
	 	(d)	 	the Mortgagee shall not be obliged to make any enquiry as to the nature or
sufficiency of any payment received by it under this Mortgage or to make any claim or
to take any action or to enforce any rights and benefits hereby assigned to the
Mortgagee or to which the Mortgagee may at any time be entitled under this Mortgage.

	6.	 	Covenants
	 
	6.1	 	The Mortgagor further covenants with the Mortgagee throughout the Security Period:

	 	(a)	 	Insurance

	 	(i)	 	Type of insurances
	 
	 	 	 	to insure and keep the Vessel insured at the expense of the Mortgagor
against:

	 	(A)	 	fire and usual marine risks (including excess risks);
	 
	 	(B)	 	war risks;
	 
	 	(C)	 	protection and indemnity risks
(including pollution risks and a freight demurrage and defence
cover); and
	 
	 	(D)	 	where the Vessel shall, at any time
enter waters under the jurisdiction of the United States of America
and/or the Exclusive Economic Zone (as defined in the United States
Oil Pollution Act of 1990) and oil pollution liability risks in
excess of the cover for oil pollution liability risks included
within the cover for protection and indemnity risks;

	 	 	 	and, at the option of the Mortgagee, either (i) to effect and keep
effected, in the name and for the benefit of the Mortgagee, but at the
expense of the Mortgagor or (ii) to
reimburse the Mortgagee on demand for any and all costs incurred by it
in effecting and maintaining such insurance in relation to the Vessel:

11

 

	 	(E)	 	a mortgagee’s interest insurance; and
	 
	 	(F)	 	(where the Vessel shall, at any time
enter waters under the jurisdiction of the United States of America
and/or the Exclusive Economic Zone (as defined in the United States
Oil Pollution Act of 1990)) an insurance against the possible
consequences of pollution due to, without limitation, oil or any
other substance involving the Vessel including, without limitation,
the risk of expropriation or sequestration of the Vessel or the
imposition of any Security Interest having priority over the
Mortgage (“Mortgagee’s Interest Insurance — Additional Perils
(Pollution)”);

	 	(ii)	 	Currency and amounts
	 
	 	 	 	to effect and keep effected the Insurances
(if not effected by the Mortgagee) in such amounts and in such
currency and upon such terms and through such brokers (hereinafter
called the “approved brokers”) and with such insurance
companies, underwriters, war risks and protection and indemnity
associations (hereinafter called the “approved
associations”) as shall from time to time be approved in
writing by the Mortgagee PROVIDED HOWEVER that the insurances
against war risks and protection and indemnity risks may be
effected by the entry of the Vessel with such war risks and
protection and indemnity risks associations as shall from time to
time be approved in writing by the Mortgagee and if so required by
the Mortgagee (but without, as between the Mortgagor and the
Mortgagee, liability on the part of the Mortgagee for premiums or
calls) with the Mortgagee named as co-assured;
	 
	 	(iii)	 	Fleet cover
	 
	 	 	 	if any of the Insurances forms part of a
fleet cover, to procure that the approved brokers and (as the case
may be) the approved associations shall undertake to the Mortgagee
that
they shall neither set off against any claims in respect of the Vessel
any premiums due in respect of other vessels under such fleet cover or
any premiums due for other insurances, nor cancel such insurance in
respect of the Vessel for reason of non-payment of premiums for other
vessels under such fleet cover or of premiums for such other insurances
and shall undertake to issue a separate policy in respect of the Vessel
if and when so requested by the Mortgagee;

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	 	(iv)	 	Renewals
	 
	 	 	 	at least fourteen (14) days before the relevant policies, contracts or
entries expire, to notify the Mortgagee in writing of the names of the
brokers and/or the war risks and protection and indemnity risks
associations proposed to be employed by the Mortgagor for the purposes
of the renewal of such insurances (subject to the Mortgagee’s approval
of such brokers and/or associations) and of the amounts in which such
insurances are proposed to be renewed and the risks to be covered and,
(subject to compliance with any requirements of the Mortgagee pursuant
to this clause 6.1(a)), to renew (or procure the renewal of)
such Insurances at least ten (10) days before the relevant policies,
contracts or entries expire and to procure that such brokers and (as the
case may be) such associations will at least seven (7) days before such
expiry confirm such renewals in writing to the Mortgagee;
	 
	 	(v)	 	Payments
	 
	 	 	 	punctually to pay all premiums, calls, contributions or other sums
payable in respect of the Insurances and to produce all relevant
receipts or other evidence if and when so required by the Mortgagee;
	 
	 	(vi)	 	Guarantees, indemnities
	 
	 	 	 	to arrange for the execution of such guarantees or indemnities as may
from time to time be required by or in connection with any protection
and indemnity or war risks association or required by or in connection
with a usual marine risks policy (including excess risks and war risks);

13

 

	 	(vii)	 	Loss payable clause, notice of assignment
	 
	 	 	 	to procure that the interest of the Mortgagee shall be duly
endorsed upon all slips, cover notes, policies, certificates of entry or
other instruments of insurance issued or to be issued in connection with
the Insurances by means of a loss payable and notice of cancellation
clause and a notice of assignment (signed by the Mortgagor) in such
forms as from time to time required by the Mortgagee;
	 
	 	(viii)	 	Instruments of insurance
	 
	 	 	 	to procure that all instruments of the Insurances shall be deposited
with the approved brokers and that such brokers shall (if so required by
the Mortgagee) furnish the Mortgagee with pro forma copies thereof and a
letter or letters of undertaking in such form as may from time to time
be required by the Mortgagee;
	 
	 	(ix)	 	Letter(s) of undertaking
	 
	 	 	 	to procure that the protection and indemnity and/or war risks
associations wherein the Vessel is entered shall (if so required by the
Mortgagee) furnish the Mortgagee with a letter or letters of undertaking
in such form as may from time to time be required by the Mortgagee;
	 
	 	(x)	 	Use of the Vessel
	 
	 	 	 	not to employ the Vessel or suffer the Vessel to be employed otherwise
than in conformity with the terms of the instruments of the Insurances
(including any warranties express or implied therein) without first
obtaining the consent to such employment of the insurers and complying
with such requirements as to extra premium or otherwise as the insurers
may prescribe;

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	 	(xi)	 	Reimbursement
	 
	 	 	 	to reimburse to the Mortgagee on demand any costs or expenses incurred
by the Mortgagee in obtaining (if and when so required by the Mortgagee)
reports from an independent
marine insurance broker appointed by the Mortgagee as to the adequacy of
the insurances effected or proposed to be effected pursuant to this
clause 6 and procure that there is delivered to such broker any
and all such information in relation to such insurances as such broker
may require;
	 
	 	(xii)	 	No consent, acts or omissions
	 
	 	 	 	not to make, do, consent or agree to any act or omission which would or
might render any instrument of insurance invalid, void, voidable or
unenforceable or render any sum paid thereunder repayable in whole or in
part;
	 
	 	(xiii)	 	Co-operation with collecting insurance moneys
	 
	 	 	 	to do all things necessary and provide all documents, evidence and
information to enable the Mortgagee to collect or recover any moneys
which shall at any time become due in respect of the Insurances;
	 
	 	(xiv)	 	Application insurance moneys
	 
	 	 	 	to apply such sums receivable in respect of the Insurances other than in
respect of a Total Loss and any major casualty (that is to say any
casualty the claim in respect of which exceeds the Major Casualty Amount
inclusive of any deductible) which shall be payable to the Mortgagee as
are paid to the Mortgagor for the purpose of making good the loss and
fully repairing all damage in respect whereof the insurance moneys shall
have been received;
	 
	 	(xv)	 	Voyage declaration
	 
	 	 	 	to make all such quarterly or other voyage declaration as may from time
to time be required by the protection and indemnity risks association to
maintain cover for trading (including, without limitation, trading to
the United States of America and Exclusive Economic Zone (as defined in
the United States Oil Pollution Act 1990))

15

 

	 	 	PROVIDED ALWAYS THAT the Mortgagee shall be entitled to review the requirements
of this clause 6.1(a) from time to time in order
to take account of significant changes in circumstances after the date of this
Mortgage (such changes in circumstances include, without limitation, changes in
the availability or the cost of insurance coverage). The Mortgagee may notify the
Mortgagor in writing from time to time of any proposed modification to the
requirements of this clause 6.1(a) which it deems appropriate in the
circumstances, and such modification shall take effect on and from the date it is
notified in writing to the Mortgagor as an amendment to this clause
6.1(a) and shall bind the Mortgagor accordingly;

	 	(b)	 	Name and Registration
	 
	 	 	 	not to change the name of the Vessel and to keep the Vessel registered with full
registration as a Marshall Island ship in the Republic of the Marshall Islands at
the Port of Majuro in the name of the Mortgagor and not do or suffer to be done
anything, or omit to do anything, the doing or omission of which could or might
result in the Vessel being required to be registered otherwise than as a Marshall
Islands ship in the Republic of Marshall Islands at the Port of Majuro and not to
do or suffer to be done anything, or omit to do anything, the doing or omission
of which could or might result in such registration being forfeited, terminated
or imperilled and not to register the Vessel or permit its registration under any
other name, flag or at any other port or with any other numbers without the prior
written consent of the Mortgagee and to procure the renewal of such registration
of the Vessel as a Marshall Islands ship with full registration at least one
month before the same shall expire;
	 
	 	(c)	 	Operator

	 	(i)	 	to comply and to procure that the Operator will comply
with, and ensure that the Vessel and the Operator at all times comply with,
the requirements of the ISM Code and the ISPS Code;
	 
	 	(ii)	 	immediately to inform and to procure that the Operator
will inform the Mortgagee if there is any threatened or actual withdrawal,
suspension, cancellation or modification of its or the Operator’s DOC, the
Vessel’s SMC or the Vessel’s ISSC;
	 
	 	(iii)	 	promptly to inform and to procure that the Operator will
promptly inform the Mortgagee upon the issue to the
Mortgagor or the Operator of a DOC and to the Vessel of a SMC and an
ISSC;

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	 	(d)	 	Employment
	 
	 	 	 	not knowingly to employ the Vessel or suffer its employment in any trade or
business which is forbidden by international law or is otherwise illegal or in
carrying illegal or prohibited goods or in any manner whatsoever which may render
the Vessel or its cargo liable to condemnation in a Prize Court or to penalty,
destruction, seizure or confiscation and in the event of any major political
confrontation or hostilities (whether or not war shall have been formally
declared) or during any civil war or insurrection, not to carry or permit to be
carried on or in the Vessel any cargo that is or may be declared contraband of
war or that may render the Vessel or its cargo liable to penalty, destruction,
seizure, or confiscation unless special war risks policies previously approved by
the Mortgagee shall have been effected prior to undertaking any such risk and to
deliver the signed cover notes in respect thereof forthwith to the Mortgagee;
	 
	 	(e)	 	Encumbrances, sale or other disposal

	 	(i)	 	not without the previous consent in writing of the
Mortgagee to create or suffer the creation of any Security Interest on or in
respect of the Vessel to or in favour of any entity or individual other than
the Mortgagee;
	 
	 	(ii)	 	not without the previous consent in writing of the
Mortgagee (and then only subject to such terms as the Mortgagee may impose)
to sell agree to sell transfer or abandon or otherwise dispose of the Vessel
or any share or interest therein;

	 	(f)	 	Prevention of and release from arrest
	 
	 	 	 	to pay and discharge all debts and liabilities which may give rise to maritime
statutory or possessory liens on the Vessel or to claims enforceable by actions
in rem against the Vessel or similar process so as to keep her free from arrest
or detention and in the event of arrest or detention of the Vessel being
threatened or effected forthwith to notify the Mortgagee thereof and to take all
steps and to make all payments necessary to obtain the release of the Vessel from
such arrest or detention within thirty days from receiving notice thereof;

17

 

	 	(g)	 	Repair and Class

	 	(i)	 	to maintain the Vessel in her present class and to comply
with the provisions of all regulations and requirements (statutory or
otherwise) from time to time applicable to the Vessel and to comply with all
class recommendations of its classification society in accordance with their
terms; and
	 
	 	(ii)	 	to keep the Vessel in good and efficient state of repair
and procure that all repairs to or replacement of any damaged, worn or lost
parts or equipment are effected in such manner (both as regards workmanship
and quality of materials) as not to diminish the value of the Vessel;

	 	(h)	 	Surveys
	 
	 	 	 	to submit the Vessel to such periodical or other surveys as may be required for
classification purposes and if so required to supply to the Mortgagee copies of
all survey reports issued in respect thereof;
	 
	 	(i)	 	Inspections
	 
	 	 	 	to permit the Mortgagee to inspect the condition of the Vessel at all reasonable
and to give the Mortgagee sufficient notice whenever practicable of dry-dockings,
surveys and major repairs so as to enable the Mortgagee’s surveyors or other
entity or individual appointed by it to attend thereat and if so required to
supply to the Mortgagee copies of survey reports on the Vessel;
	 
	 	(j)	 	Modification, Removal of Parts, Equipment owned by third parties
	 
	 	 	 	not without the prior written consent of the Mortgagee to:

	 	(i)	 	make any modification to the Vessel in consequence of
which her structure, type or performance characteristics could or might
materially be altered or her value materially reduced; or
	 
	 	(ii)	 	remove any material part of the Vessel or any equipment
the value of which is such that its removal from the Vessel would materially
reduce the value of the Vessel without replacing the same with equivalent
parts or equipment owned by the
Mortgagor free from encumbrances; or

18

 

	 	(iii)	 	install on the Vessel any equipment owned by a third
party which cannot be removed without causing damage to the structure or
fabric of the Vessel and not to permit any of the foregoing by any third
party;

	 	(k)	 	Chartering
	 
	 	 	 	not without the prior written consent of the Mortgagee, which
shall not unreasonably be withheld, to:

	 	(a)	 	let the Vessel on demise charter for any period; or
	 
	 	(b)	 	let the Vessel on time or consecutive voyage charter or
otherwise dispose of the Vessel, except for a time or consecutive voyage
charter agreement for a period which does not exceed or which by virtue of
any optional extensions therein contained is not likely to exceed six (6)
months’ duration; or
	 
	 	(c)	 	charter the Vessel on terms whereby more than three (3)
months’ hire is payable in advance;

	 	(l)	 	Information
	 
	 	 	 	to supply to the Mortgagee on request full information regarding the Vessel, her
employment, position and engagements, particulars of all towages and salvages and
copies of all charters and other contracts concerning the Vessel;
	 
	 	(m)	 	Notification of certain events
	 
	 	 	 	to notify the Mortgagee forthwith by letter or in case of urgency by telefax of
any accident to the Vessel involving repairs the cost whereof is likely to exceed
the Major Casualty Amount, of any occurrence whereby the Vessel has or is likely
to become a Total Loss, of any actual or threatened arrest, detention, seizure,
confiscation or requisition of the Vessel, of any requirement of insurers,
classification society or any competent authority which is not immediately
carried out and of any petition or notice or meeting to consider any resolution
to dissolve wind-up or liquidate the Mortgagor;

19

 

	 	(n)	 	Reimbursement
	 
	 	 	 	to pay to the Mortgagee on demand all moneys whatsoever which the Mortgagee shall
or may expend be put to or become liable for in or about the protection
maintenance or enforcement of the security created by this Mortgage and the other
Security Documents or in or about the exercise by the Mortgagee of any of the
powers vested in it hereunder or thereunder and to pay interest thereon at the
default rate as per the Financial Agreement;
	 
	 	(o)	 	Costs
	 
	 	 	 	to pay on demand to the Mortgagee (or as it may direct) the amount of all
investigation and legal expenses of any kind whatsoever stamp duties (if any)
registration fees and any other charges incurred by the Mortgagee in connection
with the preparation completion registration and discharge of the Security
Documents or otherwise in connection with the Outstanding Indebtedness and the
security therefor and to pay interest thereon at the default rate as per the
Financial Agreement;
	 
	 	(p)	 	Manager
	 
	 	 	 	not without the previous consent in writing of the Mortgagee (and then only on
and subject to such terms as the Mortgagee may impose) to appoint a manager of
the Vessel other than the Manager or amend or terminate the Management Agreement;
	 
	 	(q)	 	Repairers’ liens
	 
	 	 	 	not without the previous consent in writing of the Mortgagee to put the Vessel
into the possession of any entity or individual for the purpose of work being
done upon her in an amount exceeding or likely to exceed the Major Casualty
Amount, unless such entity or individual shall first have given to the Mortgagee
and in terms satisfactory to it a written undertaking not to exercise any lien on
the Vessel or her Earnings for the cost of such work or otherwise;

20

 

	 	(r)	 	Payment of outgoings and evidence of payment
	 
	 	 	 	promptly to pay all tolls dues and other outgoings whatsoever in respect of the
Vessel and her Earnings and Insurances and to keep
proper books of account in respect of the Vessel and her Earnings and as and when
the Mortgagee may so require to make such books available for inspection on
behalf of the Mortgagee and furnish satisfactory evidence that the wages
allotments the premiums for social insurances and pension contributions of the
master and crew are being regularly paid and that all deductions from crew’s
wages in respect of Marshall Islands tax liability are being properly accounted
for and that the master has no claim for disbursements other than those incurred
by him in the ordinary course of trading on the voyage then in progress;
	 
	 	(s)	 	Notice on board Vessel
	 
	 	 	 	to carry a certified copy of this Mortgage with the Vessel’s papers on board and
exhibit it on demand to any person having business with the Vessel or to any
representative of the Mortgagee and to place and keep prominently displayed in
the chartroom and in the master’s cabin of the Vessel a notice, printed in plain
type of such size that the paragraph of reading matter shall cover a space not
less than six inches wide by nine inches high, framed, reading as follows:
	 
	 	 	 	“NOTICE OF MORTGAGE

This Vessel is covered by a SECOND PREFERRED SHIP MORTGAGE in favour of
HOLLANDSCHE BANK-UNIE N.V. under the authority of Chapter 3 of the Maritime Act
1990 of the Republic of the Marshall Islands (as amended). Under the terms of
said Mortgage, neither the Owner, any charterer nor the Master of the Vessel nor
any other person has any right, power or authority to create, incur or permit to
be imposed upon this vessel any lien whatsoever other than for crew’s wages or
salvage.”; and
	 
	 	(t)	 	Libel
	 
	 	 	 	if a libel be filed against the Vessel or the Vessel be otherwise attached,
levied upon or taken into custody by virtue of any legal proceedings in any
Court, to promptly notify the Mortgagee thereof by telex or fax confirmed by a
letter at its office as herein referred to and within thirty (30) days cause the
Vessel to be released and all liens thereon to be discharged except for this
Mortgage and promptly notify the Mortgagee within 48 (forty-eight) hours after is
has become known to the Mortgagor of any average or salvage incurred by the
Vessel.

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	6.2	 	Environmental Matters
	 
	 	 	The Mortgagor hereby further covenants with the Mortgagee that throughout the Security
Period and unless the Mortgagee shall have otherwise agreed in writing it will:

	 	(a)	 	comply, or procure compliance with, all Environmental Laws and
Environmental Approvals relating to the Vessel, its operation or management and the
business of the Mortgagor from time to time;
	 
	 	(b)	 	notify the Mortgagee forthwith upon:

	 	(i)	 	any Environmental Claim being made against the Mortgagor,
the Manager or otherwise in connection with the Vessel; and
	 
	 	(ii)	 	any Environmental Incident occurring; and

	 	(c)	 	keep the Mortgagee advised, in writing on such regular basis and in such
detail as the Mortgagee shall require, of the Mortgagor’s response to any such
Environmental Claim or Environmental Incident.

	7.	 	Powers of Mortgagee to protect security and remedy defaults
	 
	7.1	 	The Mortgagee shall without prejudice to its other rights and powers under this Mortgage and
the other Security Documents be entitled (but not bound) at any time and as often as may be
necessary to take any such action as it may in its discretion think fit for the purpose of
protecting or maintaining the security created by this Mortgage (including, without
limitation, such action as is referred to in clause 7.2) and each and every expense,
liability, or loss (including, without limitation, legal fees) so incurred by the Mortgagee in
or about the protection or maintenance of the said security together with default interest as
per the Financial Agreement payable thereon shall be repayable to it by the Mortgagor on
demand.
	 
	7.2	 	Without prejudice to the generality of clause 7.1:

	 	(a)	 	if the Mortgagor does not comply with the provisions of the Mortgagee shall
be entitled (but not bound) to effect or to replace and renew and thereafter to
maintain the Insurances in such manner as in its discretion it may think fit and to
require that all policies, contracts and other records relating to the Insurances
(including details of any

22

 

	 	 	 	correspondence concerning outstanding claims) be forthwith delivered to such
brokers as the Mortgagee may nominate and to collect, recover, compromise and
give a good discharge for all claims then outstanding or thereafter arising under
the Insurances or any of them and to take over or institute (if necessary using
the name of the Mortgagor) all such proceedings in connection therewith as the
Mortgagee in its absolute discretion may think fit and to permit the brokers
through whom the collection or recovery is effected to charge the usual brokerage
therefor; and
	 	(b)	 	if the Mortgagor does not comply with the provisions of or any of them the
Mortgagee shall be entitled (but not bound) to arrange for the carrying out of such
repairs to and/or surveys of the Vessel as it deems expedient or necessary; and
	 
	 	(c)	 	if the Mortgagor does not comply with the provisions of or any of them the
Mortgagee shall be entitled (but not bound) to pay and discharge all such debts,
damages and liabilities and all such tolls, dues, taxes, assessments, charges, fines,
penalties and other outgoings as are therein mentioned and/or to take any such
measures as it deems expedient or necessary for the purpose of securing the release
of the Vessel.

	8.	 	Events of Default
	 
	 	 	Upon the happening of any of the following events the Outstanding Indebtedness shall
immediately become due and payable to the Mortgagee without notice and without the
necessity of any Court declaration to the effect that an Event of Default has taken place:

	 	(a)	 	Non-payment
	 
	 	 	 	any of the Security Parties shall fail to pay on the due date (or before the
expiry of any grace period applicable thereto) any sum due under any Security
Document; or
	 
	 	(b)	 	Misrepresentation
	 
	 	 	 	any representation or warranty made by any of the Security Parties in any
Security Document or any notice, certificate or statement made or delivered
hereunder or thereunder is or proves to have been incorrect in any material
respect when made, or if replaced at any time during
the continuance of this Mortgage with reference to the facts subsisting at such
time, would no longer be correct and accurate in all material respects; or

23

 

	 	(c)	 	Other obligations
	 
	 	 	 	any of the Security Parties defaults in the due performance and observance of any
of the terms, undertakings or conditions of — or the due compliance with its
obligations under — any Security Document and, if and only if such default other
than set out under clause 8(a) is capable of remedy, such default is not
remedied within 30 (thirty) days; or
	 
	 	(d)	 	Cross-default
	 
	 	 	 	any loan, debt, guarantee or other obligation constituting indebtedness of any of
the Security Parties becomes due prior to its specified maturity by reason of
default (unless such default is caused solely by the Vessel becoming a Total
Loss) or is not paid when due or any of the Security Parties is otherwise in
material breach of or default under any agreement, deed or mortgage under or
pursuant to which such indebtedness was incurred unless in any such case the
non-payment, breach or default is remedied within 30 (thirty) days; or
	 
	 	(e)	 	Distress
	 
	 	 	 	a distress or other execution is levied or sued out upon or against any part of
the property of any of the Security Parties and is not discharged within 30
(thirty) days of having been so levied or sued out; or
	 
	 	(f)	 	Insolvency
	 
	 	 	 	any of the Security Parties suspends or threatens to suspend its operations or
transfers or disposes of all or a substantial part of its undertakings or assets
or transfers its business to another country or ceases to pursue its corporate
objects or changes its corporate statute in any material way; or
	 
	 	(g)	 	any of the Security Parties (i) is unable or admits in writing its
inability to pay its lawful debts as they mature, or (ii) makes a general assignment
or pledge for the benefit of or a composition with its creditors; or

24

 

	 	(h)	 	an application is made to, or any proceedings are commenced in or any order
or judgement is given by any court for the liquidation, winding-up, reorganisation or
reconstruction (where, in the opinion of the Mortgagee, such reorganisation or
reconstruction might prejudice the Mortgagee’s position hereunder or under any of the
Security Documents) of any of the Security Parties or for the appointment of a
receiver, trustee, liquidator, administrator or administrative receiver or similar
officer of any of the Security Parties or any part of its assets; or
	 
	 	(i)	 	any of the Security Parties is adjudicated bankrupt or insolvent or files a
voluntary petition in bankruptcy or insolvency; or
	 
	 	(j)	 	Authorisation
	 
	 	 	 	any authorisation, approval, consent, licence, exemption, registration,
notification or other requirement of any governmental or public body necessary
for the validity, enforceability or legality of any Security Document or the
performance thereof is not being obtained or, if obtained, ceases for any reason
to be in full force and effect; or
	 
	 	(k)	 	Total Loss, change ownership or registration of the Vessel
	 
	 	 	 	the Vessel becomes Total Loss, there is any change in the ownership of the Vessel
or the Vessel ceases to be registered under Marshall Islands flag; or
	 
	 	(l)	 	Change shareholder or control; material change of directorship or
management
	 
	 	 	 	without the prior written consent of the Mortgagee there is after the date hereof
any change in the shareholding or control in or any material change in the
directorship or management of any of the Security Parties; or
	 
	 	(m)	 	Breach or termination charterparty 
	 
	 	 	 	the Mortgagor defaults in the performance of any charterparty of the
Vessel in any material way or any charterparty of the Vessel terminates for any
reason other than the due performance in accordance with its terms or as a result
of a Total Loss; or

25

 

	 	(n)	 	Unenforceability
	 
	 	 	 	any of the Mortgagee’s rights or powers of enforcement against or in respect of
the Vessel under any Security Document becomes unenforceable; or
	 
	 	(o)	 	Unlawfulness
	 
	 	 	 	the due performance in accordance with its terms of any Security Document becomes
illegal or impossible under the law of the country of incorporation of any party
thereto; or
	 
	 	(p)	 	Change of law and governmental measure
	 
	 	 	 	the law or its interpretation changes or a governmental measure is taken which
affects or may affect any of the Security Documents, and/or the underlying value
thereof, and the parties to such documents and the Mortgagee shall not have
reached within a reasonable period a written agreement adjusting the relevant
provisions and/or securities, on such a basis that the position of the Mortgagee
is not detrimentally affected; or
	 
	 	(q)	 	Material Adverse Change
	 
	 	 	 	a Material Adverse Change occurs, or any events or circumstances arise which, in
the reasonable opinion of the Mortgagee, give grounds for belief that a Material
Adverse Change will occur; unless such events or circumstances are capable of
remedy and are remedied within 30 (thirty) days of the Mortgagee giving notice to
any of the Security Parties; or
	 
	 	(r)	 	Other events of default
	 
	 	 	 	if the Outstanding Indebtedness becomes immediately due and payable to the Mortgagee in
accordance with the provisions of the Financial Agreement or any of the other Security
Documents.

26

 

	9.	 	Enforceability and Mortgagee’s powers
	 
	 	 	Upon the happening of any Event of Default the Mortgagee shall become forthwith entitled
to enforce the security created by this Mortgage without
prior notice and in any manner available to it and in such sequence as the Mortgagee may
in its absolute discretion prefer and when it may see fit to put into force and to
exercise all or any of the rights powers and remedies conferred upon mortgagees by law
and/or possessed by it as mortgagee and chargee of the Vessel by virtue of this Mortgage
and in particular (without limiting the generality of the foregoing):

	 	(a)	 	to take possession of the Vessel;
	 
	 	(b)	 	to require that all policies, contracts, certificates of entry and other
records relating to the Insurances (including details of and correspondence
concerning outstanding claims) be forthwith delivered to such brokers as the
Mortgagee may nominate;
	 
	 	(c)	 	to collect, recover, compromise and give a good discharge for all claims
then outstanding or thereafter arising under the Insurances or any of them or in
respect of the Earnings or any Requisition Compensation and to take over or institute
(if necessary using the name of the Mortgagor) all such proceedings in connection
therewith as the Mortgagee in its absolute discretion thinks fit and to permit the
brokers through whom collection or recovery is effected to charge the usual brokerage
therefor;
	 
	 	(d)	 	to discharge compound release or compromise claims against the Mortgagor in
respect of the Vessel which have given or may give rise to any charge or lien on the
Vessel or which are or may be enforceable by proceedings against the Vessel;
	 
	 	(e)	 	to terminate any charterparty in respect of the Vessel without being
responsible for any loss thereby occurred;
	 
	 	(f)	 	to sell the Vessel or any share therein with or without prior notice to the
Mortgagor and with or without the benefit of any charterparty or other contract for
her employment by public auction or private contract at such place and upon such
terms as the Mortgagee in its absolute discretion may determine with power to
postpone any such sale and without being answerable for any loss occasioned by such
sale or resulting from postponement thereof;
	 
	 	(g)	 	to manage, insure, maintain and repair the Vessel and to employ or lay up
the Vessel in such manner and for such period as the Mortgagee in its absolute
discretion deems expedient and for the purposes aforesaid

27

 

	 	 	 	the Mortgagee shall be entitled to do all acts and things incidental or conducive
thereto and in particular to enter into such arrangement respecting the Vessel
her insurance management maintenance repair classification and employment in all
respects as if the Mortgagee was the owner of the Vessel and without being
responsible for any loss thereby incurred;
	 
	 	(h)	 	to recover from the Mortgagor on demand any such losses as may be incurred
by the Mortgagee in or about the exercise of the power vested in the Mortgagee under
sub-clause (g) of this clause with interest thereon at the default rate as
per the Financial Agreement from the date when such losses were incurred by the
Mortgagee until the date of payment whether before or after any relevant judgment;
	 
	 	(i)	 	to recover from the Mortgagor on demand all expenses payments and
disbursements incurred by the Mortgagee in or about or incidental to the exercise by
it of any of the powers aforesaid together with interest thereon at the default rate
as per the Financial Agreement from the date when such expenses payments or
disbursements were incurred by the Mortgagee until the date of payment whether before
or after any relevant judgment

	 	 	PROVIDED ALWAYS that (i) the Mortgagee shall not be liable as mortgagee in possession in
respect of the Vessel to account or be liable for any loss upon realisation or for any
neglect or default of any nature whatsoever in connection therewith for which a mortgagee
in possession may be liable as such and (ii) upon any sale of the Vessel or any share
therein by the Mortgagee pursuant to sub-clause (f) of this clause the purchaser
shall not be bound to see or enquire whether the Mortgagee’s power of sale has arisen in
the manner herein provided and the sale shall be deemed to be within the power of the
Mortgagee and the receipt of the Mortgagee for the purchase money shall effectively
discharge the purchaser who shall not be concerned with the manner of application of the
proceeds of sale or be in any way answerable therefor.
	 
	10.	 	Application of Moneys
	 
	 	 	Upon the happening of any Event of Default the Mortgagee shall become forthwith entitled
as and when it may see fit to apply any amounts received by it from the Mortgagor and the
Mortgagee shall similarly be entitled to apply any amounts received by it in respect of:

	 	(a)	 	sale of the Vessel or any share therein;

28

 

	 	(b)	 	recovery under the Insurances;
	 
	 	(c)	 	any Earnings or moneys received pursuant to the provisions of clause
9.(g);
	 
	 	(d)	 	any Requisition Compensation,

	 	 	in the manner as specified in the Financial Agreement.
	 
	11.	 	Omissions or Delay
	 
	 	 	No delay, indulgence or omission of the Mortgagee to exercise any right power or remedy
vested in it under the Security Documents or any of them shall in any way prejudice or
impair such right power or remedy or be construed as a waiver of or as acquiescence in any
default by the Mortgagor and in event of the Mortgagee at any time agreeing to waive any
such right power or remedy such waiver shall be revocable by the Mortgagee at any time and
the right power or remedy shall thereafter be again exercisable as though there had been
no such waiver.
	 
	12.	 	Delegation of Powers
	 
	 	 	The Mortgagee shall be entitled at any time and as often as may be expedient to delegate
all or any of the powers and discretions vested in it by the Security Documents or any of
them (including the powers vested in it by virtue of clause 7.2(a) and clause
14) in such manner upon such terms and to such entities or individuals as the
Mortgagee in its absolute discretion may think fit.
	 
	13.	 	Indemnity
	 
	13.1	 	The Mortgagor hereby agrees and covenants to indemnify the Mortgagee against all losses
actions claims expenses demands obligations and liabilities whatsoever and whensoever arising
which the Mortgagee may incur in respect of, in relation to or in connection with the Vessel
or otherwise, howsoever, in relation to or in connection with any of the matters dealt with in
the Security Documents or any of them.
	 
	13.2	 	The Mortgagor hereby agrees and undertakes to indemnify the Mortgagee on demand against all
losses, actions, claims, expenses, demands, obligations and liabilities sustained or incurred
as result of or in connection with any Environmental Claim being made against the Mortgagee or
otherwise
howsoever arising out of any Environmental Incident.

29

 

	14.	 	Power of Attorney
	 
	14.1	 	The Mortgagor, by way of security and in order more fully to secure the performance of the
Mortgagor’s obligations under this Mortgage, hereby irrevocably appoints the Mortgagee as its
attorney during the Security Period for the purposes of:

	 	(a)	 	doing in its name all acts and executing, signing and (if required)
registering in its name all documents which the Mortgagor itself could do, execute,
sign or register in relation to the Vessel (including without limitation,
transferring title to the Vessel to a third party and deleting the Vessel from the
Marshall Islands Ships Registry); provided, however, that such power shall not be
exercisable by or on behalf of the Mortgagee until this Mortgage shall have become
immediately enforceable pursuant to clause 9; and
	 
	 	(b)	 	executing, signing, perfecting, doing and (if required) registering every
such further assurance document, act or thing as is referred to in clause 15.

	14.2	 	The exercise of such power as is referred to in clause 14.1(a) by or on behalf of the
Mortgagee shall not put any entity or individual dealing with the Mortgagee upon any enquiry
as to whether this Mortgage has become enforceable nor shall such entity or individual be in
any way affected by notice that this Mortgage has not become enforceable and, in relation to
both clauses 14.1(a) and 14.1(b), the exercise by the Mortgagee of such power shall be
conclusive evidence of its right to exercise the same.
	 
	15.	 	Further Assurance
	 
	 	 	The Mortgagor hereby further covenants at its own expense from time to time to execute,
sign, perfect, do and (if required) register any such further assurance, document, act or
thing as in the opinion of the Mortgagee may be necessary or desirable for the purpose of
more effectually mortgaging and charging the Vessel or perfecting the security constituted
or intended to be constituted by the Security Documents.

30

 

	16.	 	Total amount;
	 
	 	 	For the purpose of recording this Mortgage as required by Chapter 3 of the
Maritime Act, 1990 of the Marshall Islands (as amended), the total amount of this Mortgage
is USD 34,600,000 (thirty-four million six hundred thousand United States Dollars)
together with interest thereon, fees, commissions and performance of mortgage covenants,
and the discharge amount is the same as the total amount.
	 
	17.	 	Partial Invalidity
	 
	 	 	If at any time any one or more of the provisions in this Mortgage is or becomes invalid,
illegal or unenforceable in any respect under any law or regulation, the validity,
legality and enforceability of the remaining provisions of this Mortgage shall not be in
any way affected or impaired thereby.
	 
	18.	 	Notices
	 
	18.1	 	Any notice or other communication under or in connection with this Mortgage shall be in
writing and delivered by hand or sent by facsimile, by courier, or by registered mail to:

the Mortgagor:

 - ADVENTURE THREE S.A.

 - c/o FREE BULKERS S.A.

 - Akti Miaouli 93

 - Piraeus 185 382

 - Greece

 - telephone:     +30 210 4528770

 - fax:               +30 210 4291100

the Mortgagee:

 - HOLLANDSCHE BANK-UNIE N.V.

 - Coolsingel 104

 - 3011 AG Rotterdam

 - the Netherlands

or

 - P.O. Box 249

 - 3000 AE Rotterdam

 - the Netherlands

 - telephone:     +31 10 2820282

 - fax:               +31 10 2820399.

31

 

	18.2	 	Any such notice or other communication shall be deemed to have been duly given or made as
follows:

	 	(a)	 	if sent by personal delivery, upon delivery at the address of the relevant
party;
	 
	 	(b)	 	if sent by courier service or registered mail three (3) Business Days after
the date of dispatch; and
	 
	 	(c)	 	if sent by facsimile, when dispatched.

	 	 	Any communication by facsimile sent by the Mortgagor to the Mortgagee shall be confirmed
by letter if so required by the Mortgagee.
	 
	19.	 	Law and jurisdiction
	 
	19.1	 	This Mortgage shall be governed by and construed in accordance with the laws of the Marshall
Islands.
	 
	19.2	 	Subject to clause 19.3, the courts of Rotterdam, the Netherlands shall have exclusive
jurisdiction in relation to all matters which may arise out of or connection with this
Mortgage with the exclusion of any other court of law.
	 
	19.3	 	For the exclusive benefit of the Mortgagee the Mortgagor agrees that the Mortgagee reserves
the right to commence proceedings in relation to any matter which arises out of or in
connection with this Mortgage in the courts of any place in the Netherlands other than
Rotterdam or any country other than the Netherlands and which have jurisdiction to that
matter.
	 
	19.4	 	In this clause 19 “proceedings” means proceedings of any kind, including an
application for a provisional or protective measure.
	 
	19.5	 	The Mortgagor hereby agrees that any writ, judgment or other notice of process shall be
sufficiently and effectively served on it, if served on it at the address specified in
clause 18.1.

IN WITNESS whereof the Mortgagor has caused this Mortgage to be duly executed the day and year
first written.

	 	 	 	 	 	 	 
	SIGNED

	 	 	)	 	 	 
	by: _______________

	 	 	)	 	 	 
	as attorney-in-fact for

	 	 	)	 	 	 
	ADVENTURE THREE S.A.

	 	 	)	 	 	 
	in the presence of:

	 	 	)	 	 	 

32Exhibit 10.1

EXECUTION VERSION

 

AGREEMENT AND PLAN OF MERGER

BY AND AMONG

COGDELL SPENCER INC.,

COGDELL SPENCER LP,

GOLDENBOY ACQUISITION CORP.,

MEA HOLDINGS, INC.,

MARSHALL ERDMAN & ASSOCIATES, INC.

MARSHALL ERDMAN DEVELOPMENT, LLC

AND

the persons collectively referred to herein as the

“SELLER REPRESENTATIVE”

Dated as of January 23, 2008

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page
	ARTICLE 1 MERGER AND LIQUIDATION
	 	 	2	 
	 
	 	 	 	 
	1.1 Merger
	 	 	2	 
	1.2 Filing of Articles of Merger; Effective Time of the Merger
	 	 	2	 
	1.3 Charter Documents, Directors and Officers of the Surviving Company
	 	 	2	 
	1.4 Conversion of Shares and Other Interests
	 	 	2	 
	1.5 Dissenters’ Rights
	 	 	4	 
	1.6 Miscellaneous Merger Terms
	 	 	4	 
	 
	 	 	 	 
	ARTICLE 2 ADJUSTMENTS TO MERGER CONSIDERATION; PAYMENT MECHANICS
	 	 	5	 
	 
	 	 	 	 
	2.1 Total Cash Equity Price Adjustments
	 	 	5	 
	2.2 Funds Transfers; Exchange of Certificates
	 	 	8	 
	2.3 Escrow; Limitation on Purchase Price; Reserve Account
	 	 	9	 
	 
	 	 	 	 
	ARTICLE 3 CLOSING; CONDITIONS PRECEDENT TO CLOSING
	 	 	11	 
	 
	 	 	 	 
	3.1 Closing
	 	 	11	 
	3.2 Conditions Precedent to the Parent’s and Merger Sub’s Obligations
	 	 	11	 
	3.3 Conditions Precedent to the Merging Companies’ Obligations
	 	 	14	 
	3.4 Merger Filings
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF THE MERGING COMPANIES
	 	 	15	 
	 
	 	 	 	 
	4.1 Authority; Authorization; Enforceability
	 	 	15	 
	4.2 No Conflict
	 	 	16	 
	4.3 Governmental Approvals
	 	 	17	 
	4.4 Voting Agreements
	 	 	17	 
	4.5 Corporate and Limited Liability Company Matters
	 	 	17	 
	4.6 Documentation
	 	 	17	 
	4.7 Capitalization
	 	 	17	 
	4.8 Subsidiaries
	 	 	18	 
	4.9 Tangible Personal Property
	 	 	19	 
	4.10 Leased Real Estate
	 	 	19	 
	4.11 Owned Real Estate
	 	 	19	 
	4.12 Proceedings
	 	 	19	 
	4.13 Intellectual Property
	 	 	19	 
	4.14 Financial Statements
	 	 	20	 
	4.15 Taxes
	 	 	21	 
	4.16 Material Contracts
	 	 	22	 
	4.17 Employees
	 	 	23	 

i 

 

	 	 	 	 	 
	 	 	Page
	4.18 Labor and Employment Matters
	 	 	23	 
	4.19 Employee Benefit Plans; ERISA
	 	 	23	 
	4.20 Events Since Balance Sheet Date
	 	 	24	 
	4.21 Environmental, Health and Safety Matters
	 	 	24	 
	4.22 Insurance
	 	 	25	 
	4.23 Compliance With Legal Requirements; Governmental Authorizations
	 	 	25	 
	4.24 Brokers; Agents
	 	 	25	 
	4.25 Affiliate Transactions
	 	 	26	 
	4.26 Indebtedness
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF BUYER PARTIES
	 	 	26	 
	 
	 	 	 	 
	5.1 Authority
	 	 	26	 
	5.2 No Conflict
	 	 	27	 
	5.3 Proceedings
	 	 	27	 
	5.4 Brokers; Agents
	 	 	27	 
	5.5 Sufficient Funds
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 6 PRE-CLOSING COVENANTS
	 	 	28	 
	 
	 	 	 	 
	6.1 Access to Information
	 	 	28	 
	6.2 Operation of Business of Company Prior to Closing
	 	 	28	 
	6.3 HSR Act
	 	 	31	 
	6.4 Efforts to Consummate
	 	 	31	 
	6.5 Shareholders Meeting
	 	 	31	 
	6.6 Execution of Additional Documents
	 	 	32	 
	6.7 Publicity
	 	 	32	 
	6.8 Contract Guarantees
	 	 	32	 
	6.9 Employee Bonuses
	 	 	32	 
	 
	 	 	 	 
	ARTICLE 7 DISCLOSURE SCHEDULE; ABSENCE OF OTHER WARRANTIES
	 	 	32	 
	 
	 	 	 	 
	7.1 General
	 	 	32	 
	7.2 No Additional Warranties or Representations; Due Diligence
	 	 	33	 
	 
	 	 	 	 
	ARTICLE 8 POST-CLOSING COVENANTS
	 	 	33	 
	 
	 	 	 	 
	8.1 Records and Personnel
	 	 	33	 
	8.2 Cooperation
	 	 	33	 
	8.3 Publicity
	 	 	33	 
	8.4 D&O Indemnification
	 	 	34	 
	8.5 D&O Liability Insurance
	 	 	34	 
	 
	 	 	 	 
	ARTICLE 9 TERMINATION
	 	 	34	 
	 
	 	 	 	 
	9.1 Grounds for Termination
	 	 	34	 
	9.2 Effect of Termination
	 	 	35	 

ii 

 

	 	 	 	 	 
	 	 	Page
	ARTICLE 10 INDEMNIFICATION
	 	 	35	 
	 
	 	 	 	 
	10.1 Indemnification by the Merging Companies or the Sellers
	 	 	35	 
	10.2 Indemnification by the Buyer Parties and the Surviving Company
	 	 	36	 
	10.3 Procedure Relative to Indemnification
	 	 	36	 
	10.4 Limits on Indemnification
	 	 	39	 
	10.5 Sole Remedy
	 	 	41	 
	 
	 	 	 	 
	ARTICLE 11 TAX MATTERS
	 	 	42	 
	 
	 	 	 	 
	11.1 Tax Returns
	 	 	42	 
	11.2 Certain Taxes
	 	 	42	 
	11.3 Tax Treatment of Certain Payments
	 	 	42	 
	 
	 	 	 	 
	ARTICLE 12 SELLER REPRESENTATIVE
	 	 	42	 
	 
	 	 	 	 
	12.1 Appointment of the Seller Representative
	 	 	42	 
	12.2 Other Powers and Duties of the Seller Representative
	 	 	43	 
	12.3 Reliance by the Seller Representative
	 	 	44	 
	12.4 Expenses of the Seller Representative
	 	 	44	 
	12.5 Indemnification
	 	 	44	 
	12.6 Survival
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 13 DEFINITIONS
	 	 	45	 
	 
	 	 	 	 
	ARTICLE 14 MISCELLANEOUS
	 	 	56	 
	 
	 	 	 	 
	14.1 Expenses
	 	 	56	 
	14.2 Notices
	 	 	56	 
	14.3 Entire Agreement
	 	 	58	 
	14.4 Confidentiality Agreement
	 	 	58	 
	14.5 Construction
	 	 	58	 
	14.6 Assignment
	 	 	58	 
	14.7 Binding Effect
	 	 	58	 
	14.8 Paragraph Headings
	 	 	58	 
	14.9 Severability
	 	 	58	 
	14.10 Governing Law
	 	 	58	 
	14.11 Use of Terms
	 	 	59	 
	14.12 Counterparts
	 	 	59	 
	14.13 Good Faith; Consents
	 	 	59	 
	14.14 No Third Party Beneficiary
	 	 	59	 

iii 

 

	 	 	 
	EXHIBITS

	 
	 	 
	Exhibit 3.2(e)

	 	Required Consents
	Exhibit 3.2(k)(iii)

	 	Form of Escrow Agreement
	Exhibit 3.2(k)(vi)

	 	Form of Termination and Release Agreement
	Exhibit 3.2(k)(vii)

	 	Form of Employment Agreement
	Exhibit 3.2(k)(viii)

	 	Form of Termination Agreement
	Exhibit 3.2(k)(ix)

	 	Contribution Agreements
	SCHEDULES

	Schedule 1.4(e)

	 	Company Options and Restricted Stock
	Schedule 2.1

	 	Policies to be Followed in Preparing the Closing Balance Sheet
	Schedule 3.2(k)(v)

	 	Excluded Liabilities
	Schedule 3.2(k)(vi)

	 	Pledge Agreements
	Schedule 3.2(k)(vii)

	 	Employees Party to Employment Agreements
	Schedule 3.2(k)(viii)

	 	Shareholder Agreements
	Schedule 3.2(k)(ix)

	 	Sellers Party to Contribution Agreement
	Schedule 4.2

	 	Conflicts
	Schedule 4.3

	 	Governmental Approvals
	Schedule 4.4

	 	Voting Agreements
	Schedule 4.7

	 	Capitalization
	Schedule 4.8

	 	Operating Company
	Schedule 4.9

	 	Permitted Liens
	Schedule 4.10

	 	Leased Real Estate
	Schedule 4.12

	 	Proceedings
	Schedule 4.13

	 	Intellectual Property
	Schedule 4.14

	 	Financial Statements
	Schedule 4.15

	 	Taxes
	Schedule 4.16

	 	Material Contracts
	Schedule 4.18

	 	Labor and Employment Matters
	Schedule 4.19

	 	Benefit Plans
	Schedule 4.21

	 	Environmental, Health and Safety Matters
	Schedule 4.22

	 	Insurance

iv 

 

	 	 	 
	Schedule 4.23

	 	Compliance with Legal Requirements; Government Authorizations
	Schedule 4.25

	 	Affiliate Transactions
	Schedule 6.2

	 	Interim Period Operations
	Schedule 6.2(xiii)

	 	Bonuses Payable
	Schedule 6.9

	 	Senior Executive Bonuses

v 

 

AGREEMENT AND PLAN OF MERGER

     THIS AGREEMENT AND PLAN OF MERGER (this “Agreement”) is made and entered into as of this 23rd
day of January, 2008 by and among Cogdell Spencer Inc., Cogdell Spencer LP, a Delaware limited
partnership (the “Parent”), Goldenboy Acquisition Corp., a Wisconsin corporation and a wholly-owned
subsidiary of the Parent (“Merger Sub”), MEA Holdings, Inc., a Wisconsin corporation (the “Holding
Company”), Marshall Erdman & Associates, Inc., a Wisconsin corporation (“MEA”) and Marshall Erdman
Development, LLC, a Wisconsin limited liability company (“MED,” and together with the Holding
Company and MEA, the “Merging Companies,” and each individually a “Merging Company”) and David
Pelisek, David Lubar and Scott Ransom, in their capacity as the Seller Representative. MEA and MED
shall each individually be referred to as an “Operating Company” and collectively as the “Operating
Companies.” Capitalized terms used but not otherwise defined in this Agreement have the meanings
ascribed to such terms in Article 13.

RECITALS

     WHEREAS, the Boards of Directors of the Parent, Merger Sub, the Holding Company, MEA, MED, and
the Parent, as the sole shareholder of Merger Sub, have adopted and approved this Agreement and the
merger of Merger Sub with and into the Holding Company (the “Merger”) in accordance with this
Agreement and the Wisconsin Business Corporation Law (the “WBCL”);

     WHEREAS, subsequent to the Holding Company’s approval of this Agreement and concurrently with
the execution of this Agreement and as a condition and inducement to the willingness of the Parent
and the Merger Sub to enter into this Agreement, the Holding Company has delivered to the Parent
one or more voting agreements pursuant to which certain shareholders holding in the aggregate 100%
of the Voting Common Shares, 51.05% of the Non-Voting Common Shares and 94.10% of the Preferred
Shares have agreed to vote such Shares owned by such shareholders in favor of the Merger;

     WHEREAS, concurrently with the execution of this Agreement, Cogdell Spencer Inc., the Parent
(sometimes hereinafter referred to as the “Operating Partnership”) and certain shareholders of the
Holding Company have entered into agreements (the “Contribution Agreements”) pursuant to which each
Contributor has agreed to contribute Common Shares to the Operating Partnership in exchange for
units of limited partnership interests issued by the Operating Partnership (“OP Units”), and the
parties anticipate that in addition to the shareholders who are parties to Contribution Agreements
(sometimes referred to in this Agreement as “Contributors”), other shareholders will enter into
Contribution Agreements prior to the Closing; and

     WHEREAS, the Parent, Merger Sub, the Holding Company, MEA and MED desire to consummate the
Merger and the other transactions contemplated herein upon the terms and subject to the conditions
set forth in this Agreement.

 

 

AGREEMENT

     NOW, THEREFORE, in consideration of the mutual promises herein made and the representations,
warranties, covenants and agreements set forth in this Agreement, the parties hereto agree as
follows:

ARTICLE 1

MERGER AND LIQUIDATION

     1.1 Merger. At the Effective Time, and in accordance with the terms and subject to
the conditions set forth in this Agreement and the WBCL, Merger Sub will be merged with and into
the Holding Company, the separate corporate existence of Merger Sub will cease and the Holding
Company will be the surviving corporation in the Merger (sometimes hereinafter referred to as the
“Surviving Company”). At the Effective Time, the Merger will have the other effects set forth in
this Agreement and provided in the applicable provisions of the WBCL.

     1.2 Filing of Articles of Merger; Effective Time of the Merger. Concurrently with the
Closing, the Surviving Company shall file properly executed articles of merger (“Articles of
Merger”) with the Department of Financial Institutions of the State of Wisconsin in a customary
form reasonably acceptable to both parties, conforming to the requirements of the WBCL and shall
make all other filings or recordings required under the WBCL. The Merger shall become effective at
the time specified in such Articles of Merger or, if no time is specified, at the time such
Articles of Merger are filed with the Department of Financial Institutions of the State of
Wisconsin (the “Effective Time”).

     1.3 Charter Documents, Directors and Officers of the Surviving Company. As of the
Effective Time, the Amended and Restated Articles of Incorporation and Bylaws of the Holding
Company will be amended and restated in their entirety to be identical to the Articles of
Incorporation and Bylaws of Merger Sub (except that the Articles of Incorporation and Bylaws shall
provide that the name of the Surviving Company is the name of the Holding Company), and will be the
Articles of Incorporation and Bylaws of the Surviving Company. The directors of Merger Sub
immediately before the Effective Time shall be the initial directors of the Surviving Company each
to hold office in accordance with the applicable provisions of the Articles of Incorporation and
Bylaws of the Surviving Company. The officers of the Holding Company immediately before the
Effective Time will be the initial officers of the Surviving Company, each to hold office in
accordance with the applicable provisions of the Articles of Incorporation and Bylaws of the
Surviving Company.

     1.4 Conversion of Shares and Other Interests. At the Effective Time, by virtue of the
Merger and without any further action on the part of any party to this Agreement or their
respective shareholders:

          (a) subject to Section 1.4(f) and Section 1.5, each Common Share outstanding
immediately prior to the Effective Time (each such Share, a “Merger Share” and collectively, the
“Merger Shares”) will be converted into and represent the right to receive the Per Share Merger
Consideration, payable to the holder thereof, without interest (except as otherwise expressly
provided herein), in accordance with the terms of this Agreement;

2

 

          (b) each issued and outstanding share of Preferred Stock, par value $0.01 per share, of the
Company (each a “Preferred Share” and each holder thereof a “Preferred Shareholder”) shall be
converted into the right to receive a price per share equal to the liquidation preference described
in Section B7 of Article IV of the Holding Company’s Amended and Restated Articles of
Incorporation, as amended from time to time, in effect immediately prior to the Effective Time (in
the aggregate, the “Liquidation Consideration”);

          (c) each share of capital stock of Merger Sub issued and outstanding as of the Effective Time
will be converted into and represent one (1) fully paid and nonassessable share of common stock of
the Surviving Company;

          (d) subject to Section 1.4(e), each warrant, option or other right to acquire any
capital stock of the Holding Company, if any, existing immediately prior to the Effective Time will
automatically be canceled and retired and cease to exist, and no payment will be made with respect
thereto; and

          (e) except as set forth on Schedule 1.4(e):

     (i) each Company Option outstanding immediately prior to the Effective Time,
whether or not currently exercisable as provided under the terms thereof, shall
become, immediately prior to the Effective Time, exercisable. As of the Effective
Time, each Company Option shall be cancelled and the holder thereof shall be
entitled solely to the right to receive cash consideration (if any) in an amount
(the “Option Payment”) equal to: (x) the product of (A) the number of shares subject
to such Company Option and (B) the excess, if any, of the Per Share Merger
Consideration over the exercise price per share subject to such Company Option.

     (ii) each share of Restricted Stock outstanding immediately prior to the
Effective Time shall become, immediately prior to the Effective Time, fully vested
and shall (except for required or permitted deductions and withholdings set forth
below) be treated for all purposes of this Agreement as a Merger Share (each, a
“Restricted Merger Share”).

     (iii) each holder of Company Options and Restricted Stock shall be deemed to be
“Sellers” for all purposes including, without limitation, with respect to
Article 10.

     (f) Notwithstanding the other provisions of this Section 1.4, the Common Shares that
the Contributors have agreed to contribute to the Operating Partnership pursuant to the
Contribution Agreements (the “Contributed Shares”) shall not be canceled and converted into the
right to receive the Per Share Merger Consideration and instead shall remain outstanding and, effective as of the Effective Time, shall be owned by the Parent, it being understood,
however, that the Contributors shall be entitled to receive the consideration provided for in their
respective Contribution Agreements. As a result of the foregoing provision and the provisions of
the Contribution Agreements, (i) the amounts of the Indemnity Escrow Amount, the Adjustment Amount
and the Appraisal Rights Amount (if any) required to be deposited by the Parent into the

3

 

Escrow
Account pursuant to Section 2.2(a) shall be reduced by the amounts thereof that would have
been attributable to the Contributed Shares were they not contributed to Parent as provided in this
Section 1.4(f); (ii) the amounts required to be provided by the Parent to the Exchange
Agent in respect of the Estimated Total Cash Equity Price similarly shall be reduced by the amount
thereof that would have been attributable to the Contributed Shares were they not contributed to
Parent as provided in this Section 1.4(f); (iii) the amounts to be paid or released to or
for the account of the Seller pursuant to Section 2.3 shall be reduced by the amounts
thereof that would have been attributable to the Contributed Shares were they not contributed to
Parent as provided in this Section 1.4(f); and (iv) the amounts to be paid or released to
the Parent from the Escrow Account shall be reduced by the amounts thereof that would have been
attributable to the Contributed Shares were they not contributed to Parent as provided in this
Section 1.4(f).

     1.5 Dissenters’ Rights. Notwithstanding any provision of this Agreement to the
contrary, any Dissenters’ Shares shall not be converted into or represent a right to receive any of
the Merger Consideration, but the holder thereof (each a “Dissenting Shareholder”) shall only be
entitled to such rights as are granted by Sections 180.1301 through 180.1331 of the WBCL.
Consequently, Dissenters’ Shares shall not be converted into the right to receive the Per Share
Merger Consideration, but instead shall entitle the holder thereof solely to payment of the fair
value of his or her Shares pursuant to Sections 180.1301 through 180.1331 of the WBCL. At the
Effective Time, such Dissenters’ Shares shall no longer be outstanding and shall automatically be
cancelled and shall cease to exist, and such holder shall cease to have any rights as a shareholder
with respect thereto, except the right to receive the fair value of such Shares as determined in
accordance with Sections 180.1301 through 180.1331 of the WBCL. If a holder of Shares who demands
appraisal of such Shares under the WBCL shall effectively withdraw or otherwise lose (through
failure to perfect or otherwise) the right to appraisal, then, as of the Effective Time or the
occurrence of such event, whichever last occurs, such Shares shall be converted into and represent
only the right to receive the Per Share Merger Consideration, without interest, upon the surrender
of the certificate or certificates representing such Shares. The Holding Company shall give the
Parent prompt notice of any written demands for appraisal of any Shares, attempted withdrawals of
such demands, and any other instruments served pursuant to the WBCL received by the Holding Company
relating to shareholders’ rights of appraisal. The Holding Company shall not, except with the
prior written consent of the Parent, voluntarily make any payment with respect to any demands for
appraisals of capital stock of the Holding Company, settle or offer to settle any demands or
approve any withdrawal of any such demands. Each Person holding of record or beneficially owning
Dissenting Shares will receive payment therefor from the Surviving Company.

     1.6 Miscellaneous Merger Terms.

          (a) At the Effective Time, except as provided in Section 1.4(f) with respect to the
Contributed Shares, (i) all Merger Shares will be canceled and cease to exist, and each holder of a
Merger Share (each, a “Seller” and collectively, the “Sellers”) will cease to have any rights as a
shareholder with respect to such Merger Share, and instead shall have solely the right to receive
the Per Share Merger Consideration or to preserve and perfect such holder’s dissenters’ rights if
such Merger Share is a Dissenter’s Share and (ii) all Preferred Shares will be cancelled and cease
to exist and each holder of a Preferred Share will cease to have any rights as a shareholder with
respect to such Preferred Share, and instead shall have the right solely to

4

 

receive the applicable
Liquidation Consideration. No transfers of Merger Shares or Preferred Shares will be made on the
stock transfer books of the Surviving Company, except that the foregoing shall not prohibit
transfers of Contributed Shares.

          (b) If payment of cash is to be made to a Person other than the Person in whose name the
certificate for the Merger Shares surrendered in exchange therefor is registered, then it is a
condition to such payment that the certificate so surrendered be properly endorsed and otherwise in
proper form for transfer satisfactory to the Surviving Company, and that the Person requesting such
payment pay to the Surviving Company any transfer and other Taxes required by reason of such
payment in any name other than that of the registered holder of the certificate surrendered or
establish to the satisfaction of the Surviving Company that such Tax either has been paid or is not
payable.

          (c) The Surviving Company is authorized to pay the cash attributable to any certificate for
the Merger Shares previously issued which has been lost or destroyed, upon receipt of satisfactory
evidence of ownership of the shares represented thereby satisfactory to the Surviving Company and
of appropriate indemnification.

          (d) Notwithstanding anything in this Agreement to the contrary, Parent, the Surviving Company,
the Exchange Agent and the Escrow Agent shall be entitled to deduct and withhold from the
consideration otherwise payable pursuant to this Agreement or the Escrow Agreement to any holder of
Shares or Company Options or other Persons such amounts as Parent, the Surviving Company, the
Exchange Agent and the Escrow Agent are required to deduct and withhold under the Code, or any
other Legal Requirement, with respect to the making of such payment. To the extent that amounts
are so withheld by Parent, the Exchange Agent or the Escrow Agent, such withheld amounts shall be
treated for all purposes of this Agreement as having been paid to the holder of Shares or Company
Options or other Person in respect of whom such deduction and withholding was made by Parent, the
Exchange Agent or the Escrow Agent.

ARTICLE 2

ADJUSTMENTS TO MERGER CONSIDERATION; PAYMENT MECHANICS

     2.1 Total Cash Equity Price Adjustments.

          (a)

     (i) The Total Cash Equity Price shall be (A) reduced or increased (without
duplication), as applicable, by the Working Capital Adjustment as derived from the
final Closing Statement and (B) reduced or increased, as applicable, by the amount
of Indebtedness Adjustment as derived from the final Closing Statement. Any net
reduction in or net addition to the Total Cash Equity Price required pursuant to the
preceding sentence is hereinafter referred to as the “Shortfall Reduction” or
“Excess Payment,” respectively.

5

 

     (ii) The Holding Company shall deliver to the Parent, no later than five (5)
Business Days prior to Closing, the Estimated Balance Sheet and the Estimated
Closing Statement.

          (b) Within sixty (60) days following the Closing Date, the Parent will prepare and deliver to
the Seller Representative an unaudited consolidated balance sheet of the Holding Company and its
subsidiaries as of the close of business on the day immediately preceding the Closing Date (the
“Closing Balance Sheet”), together with a statement (the “Closing Statement”) setting forth the
Working Capital, the Working Capital Adjustment, the Closing Date Indebtedness, the Indebtedness
Adjustment and the Total Cash Equity Price as reflected on and derived from the Closing Balance
Sheet. The Closing Balance Sheet shall be prepared in accordance with GAAP, subject to internal
reclassifications, conducted in accordance with the historical practices of the Holding Company and
using the same applicable accounting methods, accounting practices, assumptions, policies and
methodologies as were used in preparing the Financial Statements and the additional assumptions and
policies set forth on Schedule 2.1.

          (c) The Closing Statement shall become final and binding upon the parties on the date (the
“Final Settlement Date”) that is thirty (30) days following receipt thereof by the Seller
Representative unless the Seller Representative gives written notice of its disagreement (“Notice
of Disagreement”) to the Parent prior to such date. Any Notice of Disagreement shall specify in
reasonable detail the dollar amount, nature and basis of any disagreement so asserted and shall
identify with specificity the components of the Parent’s calculation of any aspect of the Closing
Statement as to which the Seller Representative objects. Any portion of the Closing Statement not
subject to any disagreement contained in the Notice of Disagreement shall be deemed to be final as
set forth in the Closing Statement. If a Notice of Disagreement is delivered to the Parent in a
timely manner, then the Closing Statement (as revised in accordance with Section 2.1(d)
below, if applicable) shall become final and binding on the parties on, and the “Final Settlement
Date” shall be, the earlier of (i) the date upon which the Seller Representative and the Parent
agree in writing with respect to all matters specified in the Notice of Disagreement and (ii) the
date upon which the final Closing Statement is issued by the Arbitrator.

          (d) During the first thirty (30) days following the date upon which the Parent receives a
Notice of Disagreement, the Seller Representative and the Parent shall attempt in good faith to
resolve in writing any differences that they may have with respect to all matters specified in the
Notice of Disagreement. If at the end of such thirty (30) day period (or earlier by mutual
agreement to arbitrate), the Parent and the Seller Representative have not reached agreement on
such matters, the matters that remain in dispute may be submitted to the Milwaukee office of Grant
Thornton LLP (the “Arbitrator”) by either party for review and resolution. If the
Milwaukee office of Grant Thornton LLP is unable to serve as the Arbitrator hereunder, the
Arbitrator shall be a nationally recognized independent public accounting firm selected by the
Parent and reasonably acceptable to the Seller Representative. As promptly as practicable (but in
no event more than thirty (30) days) after the retention of the Arbitrator, the Parent and the
Seller Representative shall each prepare and submit a presentation to the Arbitrator. As soon as
practicable (but in no event more than thirty (30) days) thereafter, the Arbitrator shall determine
the amount of each item in dispute and prepare a final Closing Statement and calculation of Working
Capital and Closing Date Indebtedness in accordance with the principles in this Section

6

 

2.1, which shall include an explanation in writing of the Arbitrator’s reasons for the
determinations set forth therein. The Arbitrator shall act as an arbitrator and not an expert,
shall address only those items in dispute and for each item may not assign a value greater than the
greatest value for such item claimed by either party or smaller than the smallest value for such
item claimed by either party. The decision of the Arbitrator shall be final and binding on the
parties. The costs, fees and expenses of the Arbitrator in connection with the Arbitrator’s review
pursuant to this Section 2.1(d) (including reasonable attorneys’ fees of the Arbitrator)
shall be paid by the party found by the Arbitrator to be in the greatest error with respect to its
position on the Closing Statement or, if no such finding is made by the Arbitrator, be borne fifty
percent (50%) by the Parent and fifty percent (50%) by the Sellers (out of the amounts on deposit
in the Reserve Account). Each of the Parent and the Seller Representative shall pay its own costs,
fees and expenses (including attorney’s fees) in connection with the Arbitrator’s review pursuant
to this Section 2.1(d), without right of reimbursement from such other party; provided,
that such costs, fees and expenses of the Seller Representative shall be paid out of the amounts on
deposit in the Reserve Account (but only after payment of any Arbitrator’s fees and expenses
payable by the Sellers pursuant to this Section 2.1(d)).

          (e) Any Shortfall Reduction or Excess Payment described in Section 2.1(a)(i) shall be
paid not later than five (5) Business Days after the Final Settlement Date (i) in the case of an
Excess Payment, by the Parent by wire transfer of immediately available funds to the Exchange Agent
to be added to the Exchange Fund for the benefit of, and to be distributed to, the Sellers in
accordance with Section 2.3(b), or (ii) in the case of a Shortfall Reduction, out of the
Adjustment Amount on deposit with the Escrow Agent pursuant to a joint written instruction that the
Seller Representative and the Parent shall send to the Escrow Agent, directing the Escrow Agent to
disburse funds in the amount of the Shortfall Reduction out of the Adjustment Amount on deposit in
the Escrow Account to Parent; provided that if the Adjustment Amount on deposit in the Escrow
Account is insufficient to pay all of the Shortfall Reduction (including the interest thereon), the
unpaid portion of the Shortfall Reduction shall be payable from the Indemnity Escrow Amount on
deposit with the Escrow Agent. The amount of any Shortfall Reduction or Excess Payment to be made
after the Closing Date pursuant to this Section 2.1(e) shall bear interest from and
including the Closing Date to but excluding the date of payment at a rate per annum equal to the
prime rate as published in the Wall Street Journal, Eastern Edition, in effect on the Closing Date.
Such interest shall be payable at the same time as the payment to which it relates and shall be
calculated daily on the basis of a year of 365 days and the actual number of days elapsed and, in
the case of a Shortfall Reduction, shall be paid out of the Escrow Account.

          (f) For purposes of complying with the terms set forth in this Section 2.1, each party
shall reasonably cooperate with and make reasonably available to the other Parties and their
respective representatives all information, records, data and working papers, and shall
permit reasonable access to its facilities and personnel, as may reasonably be required in
connection with the preparation of the Closing Balance Sheet and Closing Statement and any Notice
of Disagreement and in connection with the arbitration described in Section 2.1(d).

          (g) Any Shortfall Reduction or Excess Payment (in either case, together with interest thereon
as contemplated by Section 2.1(e)) payable pursuant to this Section 2.1 shall be
deemed to be an adjustment to the Total Cash Equity Price (including for Tax purposes).

7

 

     2.2 Funds Transfers; Exchange of Certificates.

          (a) Funding. At the Effective Time, (i) the Parent shall deposit the Liquidation
Consideration with the Exchange Agent; (ii) the Parent shall pay the obligations described in
Section 3.2(k)(v) (the Excluded Liabilities) and Section 3.2(k)(vi) (the M&I Debt)
in the amounts specified by the Persons to whom such obligations are owed in the Payoff Statement
referred to in Section 3.2(k)(v) such that the Merging Companies thereupon shall have no further
liability whatsoever to those Persons; (iii) the Parent shall deposit, or cause to be deposited,
the Indemnity Escrow Amount, the Adjustment Amount and the Appraisal Rights Amount (if any) (each
reduced in accordance with Section 1.4(f) by the amounts attributable to the Contributed
Shares) into the Escrow Account and (iv) the Parent shall pay the Reserve Amount to the Seller
Representative. Immediately following the Effective Time, and subject to Section 2.2(d),
the Parent shall provide funds, from time to time when and as required, to make the payments
provided for herein when due, to a bank or trust company designated by the Parent and reasonably
satisfactory to the Holding Company (the “Exchange Agent”), for the benefit of the holders of the
Merger Shares and Company Options, in cash in U.S. dollars in the amounts necessary to permit the
Parent to discharge its obligations under this Agreement in an aggregate amount equal to the
Estimated Total Cash Equity Price (reduced in accordance with Section 1.4(f) by the amounts
attributable to the Contributed Shares) (such cash, together with any Excess Payment (and interest
thereon), being hereinafter referred to as the “Exchange Fund”). The Exchange Agent shall deliver
the Merger Consideration and the Option Payments out of the Exchange Fund. The Exchange Fund shall
not be used for any other purpose. Payment of Merger Consideration and Option Payments shall be
made in installments as necessary, taking into account any Excess Payment and disbursement of the
Indemnity Escrow Amount, the Adjustment Amount, the Appraisal Rights Amount (if any) and the
Reserve Amount.

          (b) Merger Share Exchange Procedures. Subject to Section 1.5, promptly
following the Effective Time, the Parent shall instruct the Exchange Agent to mail to each holder
of record of a certificate or certificates which immediately prior to the Effective Time
represented outstanding Merger Shares (the “Certificates”) (i) a letter of transmittal (which shall
specify that delivery shall be effected, and risk of loss and title to the Certificates shall pass,
only upon proper delivery of the Certificates to the Exchange Agent and shall be in customary form
and satisfactory to the Holding Company and the Parent) and (ii) instructions for use in effecting
the surrender of the Certificates in exchange for the portion of the Merger Consideration
receivable in respect of such Certificates. Upon surrender of a Certificate for cancellation to
the Exchange Agent together with such letter of transmittal, properly completed and duly executed,
and such other documents as may be required pursuant to such instructions, the holder of such
Certificate shall be entitled to receive in exchange therefor the Per Share Merger
Consideration which such holder has the right to receive in respect of the Merger Shares formerly
represented by such Certificate, subject to the exclusions and deferrals provided for in
Section 2.3, and the Certificate so surrendered shall forthwith be canceled. Following any
receipt of an Excess Payment (together with related interest), the Exchange Agent will deliver to
each holder of surrendered Certificates, such holder’s pro rata portion thereof; provided, that if
the Exchange Agent receives an Excess Payment (together with related interest) prior to receipt of
surrendered Certificates and the letter of transmittal, then payment of the portion thereof
applicable to such unsurrendered Certificates shall be made at the same time as payment of the
balance of the applicable Merger Consideration upon surrender thereof. Parent acknowledges that
certain of

8

 

the Sellers have granted security interests on their Merger Shares to secure
indebtedness and other obligations to lenders, and that the payments to be made in respect of those
Merger Shares may be directed partly to those lenders and partly to those Sellers.

          (c) Preferred Stock Exchange Procedures. Promptly following the Effective Time, the
Surviving Company or the Exchange Agent on its behalf shall mail to each Preferred Shareholder (i)
a letter of transmittal (which shall specify that delivery shall be effected, and risk of loss and
title to certificates representing outstanding Preferred Shares (the “Holding Company Preferred
Stock Certificates”) shall pass, only upon proper delivery of the Holding Company Preferred Stock
Certificates to the Exchange Agent) and (ii) instructions for use in effecting the surrender of the
Holding Company Preferred Stock Certificates for payment of the Liquidation Consideration
therefore. Upon surrender of the Holding Company Preferred Stock Certificates to the Exchange
Agent, together with such letter of transmittal duly executed and any other documents required by
the Surviving Company or the Exchange Agent, such Preferred Shareholder shall be entitled to
receive his, her or its share of the Liquidation Consideration. No interest shall be paid or
accrue on the Liquidation Consideration payable upon surrender of the Holding Company Preferred
Stock Certificates. If any payment of the Liquidation Consideration is to be made to a Person
other than the one in whose name the Holding Company Preferred Stock Certificate surrendered in
exchange therefore is registered, it shall be a condition of such payment that the Holding Company
Preferred Stock Certificate so surrendered shall be properly endorsed and otherwise in proper form
for transfer. In the event any Holding Company Preferred Stock Certificate shall have been lost,
stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such
Holding Company Preferred Stock Certificate to be lost, stolen or destroyed, and an agreement by
such Person to indemnify the Surviving Company and the Parent against any claim that may be made
against them with respect to such Holding Company Preferred Stock Certificate, the Exchange Agent
shall deliver in exchange for such affidavit and agreement, payment for such Preferred
Shareholder’s share of the Liquidation Consideration.

          (d) Escheat. Notwithstanding the foregoing provisions of this Section 2.2,
neither the Exchange Agent nor any other party hereto shall be liable to any Seller or Preferred
Shareholder for any Merger Consideration or Liquidation Consideration delivered to a public
official pursuant to applicable escheat or similar law. Any funds held in the Exchange Fund shall
be returned to the Parent before they otherwise would become subject to any such escheat or similar
law.

     2.3 Escrow; Limitation on Purchase Price; Reserve Account. For the avoidance of doubt and without duplication, but subject in each case to the
provisions of Section 1.4(f) in respect of Contributed Shares:

          (a) Each payment initially to be made pursuant to Section 1.4 to a holder of Merger
Shares (including Restricted Merger Shares) or Company Options shall exclude an amount equal to
such holder’s pro rata portion of the Indemnity Escrow Amount. The Indemnity Escrow Amount shall
be delivered to the Escrow Agent at or prior to the Effective Time to be held in escrow pursuant to
the provisions of the Escrow Agreement as security for the indemnification obligations owed by the
Sellers to the Parent under this Agreement. Within five (5) Business Days after the date that is
the 240th day following the Closing Date (the “First

9

 

Escrow Release Date”), each of Parent and the
Seller Representative shall execute joint written instructions to the Escrow Agent instructing the
Escrow Agent to disburse to the former holders of Merger Shares (including Restricted Merger
Shares) and Company Options of their respective pro rata portions of an amount equal to (i)
$6,175,000, minus the sum of (A) the aggregate of all amounts previously paid from the Indemnity
Escrow Account in satisfaction of any indemnity claims made pursuant to Section 10.1 and
(B) the aggregate amount of all claims for indemnification asserted in writing by the Parent prior
to the First Escrow Release Date that have not paid or satisfied prior to the First Escrow Release
Date. Within five (5) Business Days after the date that is the 450th day following the Closing
Date
(the “Second Escrow Release Date”), each of Parent and the Seller Representative shall execute
joint written instructions to the Escrow Agent instructing the Escrow Agent to disburse to the
former holders of Merger Shares (including Restricted Merger Shares) and Company Options of their
respective pro rata portions of an amount equal to (x) the remaining balance of the Indemnity
Escrow Amount, together with any earnings thereon pursuant to the Escrow Agreement, minus (y) the
aggregate amount of all claims for indemnification asserted in writing by the Parent prior to the
Second Escrow Release Date that have not been paid or satisfied prior to the Second Escrow Release
Date.

          (b) Each payment initially to be made pursuant to Section 1.4 to a holder of Merger
Shares (including Restricted Merger Shares) or Company Options shall exclude an amount equal to
such holder’s pro rata portion of the Adjustment Amount. The Adjustment Amount shall be delivered
to the Escrow Agent at or prior to the Effective Time to be held in escrow as security for the
payment of any Shortfall Reduction to the Parent in accordance with Section 2.2 pursuant to
the provisions of the Escrow Agreement. Within five (5) Business Days of the Final Settlement
Date, each of the Parent and the Seller Representative shall execute joint written instructions to
the Escrow Agent instructing the Escrow Agent to disburse to the Exchange Agent for the benefit of
and distribution to the holders of Merger Shares (including Restricted Merger Shares) and Company
Options their respective pro rata portions of the balance, if any, of the Adjustment Amount,
together with any earnings thereon pursuant to the Escrow Agreement.

          (c) Each payment initially to be made pursuant to Section 1.4 to a holder of Merger
Shares (including Restricted Merger Shares) or Company Options shall exclude an amount equal to
such holder’s pro rata portion of the Appraisal Rights Amount (if any). The Appraisal Rights
Amount (if any) shall be delivered to the Escrow Agent at or prior to the Effective Time to be held
in escrow pursuant to the provisions of the Escrow Agreement as security for the payment of (i) any
costs incurred by the Surviving Company associated with all negotiations and proceedings with
respect to demands for appraisal under the WBCL and (ii) the
amount payable to any Dissenting Shareholder by the Holding Company following the resolution
of any demand for appraisal in excess of the amount payable to such Dissenting Shareholder in
respect of such holder’s Dissenters’ Shares pursuant to the terms of this Agreement if such
Dissenting Shareholder had not asserted appraisal rights (collectively, the “Appraisal Rights
Losses”). Within five (5) Business Days of the final resolution of all demands for appraisal
pursuant to the WBCL made by Dissenting Shareholders, each of Parent and the Seller Representative
shall execute joint written instructions to the Escrow Agent instructing the Escrow Agent to
disburse to the holders of Merger Shares (including Restricted Merger Shares) and Company Options
their respective pro rata portions of the balance, if any, of the Appraisal Rights Amount, together
with any earnings thereon pursuant to the Escrow Agreement.

10

 

          (d) Under no circumstances shall the aggregate amounts payable under this Agreement in respect
of Merger Shares (including Restricted Merger Shares) and Company Options exceed the Total Cash
Equity Price minus the amount thereof that would have been attributable to the Contributed Shares
were they not contributed to Parent as provided in Section 1.4(f).

          (e) At the Closing, the Parent shall deliver to the Seller Representative the sum of $100,000
(the “Reserve Amount”) for deposit into a bank account controlled by the Seller Representative (the
“Reserve Account”) to be used to cover the costs and expenses, if any, incurred by the Seller
Representative in defending any indemnification claims brought by the Indemnified Parties under
Article 10, or any other costs or expenses incurred by the Seller Representative in the
performance of its obligations as Seller Representative. Each payment initially to be made
pursuant to Section 1.4 to a holder of Merger Shares or Company Options shall exclude an
amount equal to such holder’s pro rata portion of the Reserve Amount. The Seller Representative
shall distribute all amounts remaining in the Reserve Account to the Sellers upon the later of the
Second Escrow Release Date or the resolution of all indemnification claims against the Sellers.

ARTICLE 3

CLOSING; CONDITIONS PRECEDENT TO CLOSING

     3.1 Closing. Subject to the satisfaction (or, where permissible, waiver) of the
conditions set forth in this Article 3, the Closing will be held at the offices of Clifford
Chance US LLP located at 31 West 52nd Street, New York, New York 10019 at 9:00 a.m. Eastern Time on
February 29, 2008, or at such other time and place as the Parent and the Holding Company mutually
agree. Except as otherwise provided in the Transaction Documents, all proceedings to be taken and
all documents to be executed at the Closing will be deemed to have been taken, delivered and
executed simultaneously, and no proceeding will be deemed taken or documents deemed executed or
delivered until all have been taken, delivered and executed.

     3.2 Conditions Precedent to the Parent’s and Merger Sub’s Obligations. The obligation
of the Parent and Merger Sub to consummate the Merger and the other Transactions is subject to the
satisfaction as of the Closing of each of the following conditions:

          (a) The Shareholder Approval shall have been obtained in accordance with the WBCL.

          (b) The representations and warranties of the Merging Companies set forth in Sections 4.1,
4.7, and 4.8(a) shall be true and correct. The other representations and warranties of the
Merging Companies set forth in Article 4 that are qualified by any reference to material
adverse effect shall be true and correct on and as of the date of this Agreement and as of the
Closing Date with the same force and effect as though made on and as of the Closing Date, except to
the extent that any representation or warranty that is limited by its terms to a specific date or
range of dates (in which case such representation and warranty need only be true and correct on the
date or during the range of dates so specified). All other representations and warranties of the
Merging Companies set forth in Article 4 shall be true and correct on and as of the date of
this Agreement and as of the Closing Date with the same force and effect as though

11

 

made on and as
of the Closing Date, except for any representation or warranty that is limited by its terms to a
specific date or range of dates (in which case such representation and warranty need only be true
and correct on the date or during the range of dates so specified) and except where the failure of
such representation and warranty to be true and correct would not reasonably be expected to have,
individually or in the aggregate with other such failures, a Material Adverse Effect. For purposes
of this Section 3.2 only, a failure to be true and correct shall be deemed to have a
Material Adverse Effect if the aggregate amount of Losses resulting from such failure reasonably
may be expected to exceed fifty percent (50%) of the Indemnity Escrow Amount.

          (c) Each of the Merging Companies shall have performed in all material respects the covenants
contained in this Agreement required to be performed by such Merging Company on or prior to the
Closing Date.

          (d) The Holding Company shall have delivered to the Parent a certificate dated the Closing
Date and signed by an authorized officer of the Holding Company, to the effect that the conditions
set forth in Sections 3.2(b)and (c) have been satisfied as of the Closing Date. The
statements contained in such certificate will be a representation and warranty of the Holding
Company which will survive the Closing as provided in Article 10.

          (e) The Required Consents listed on Exhibit 3.2(e), in each case in form and substance
reasonably satisfactory to the Parent, shall have been received on or prior to the Closing Date.

          (f) The applicable waiting period under the HSR Act shall have expired or been terminated and
all necessary Governmental Authorizations required in order that the consummation of the Merger and
the Transactions will not violate any Legal Requirement, shall have been obtained.

          (g) There shall be no injunction, restraining order, decree or other Legal Requirement of any
nature that is in effect that restrains or prohibits the consummation of the Merger or any of the
Transactions.

          (h) Since the date of this Agreement, no Material Adverse Effect shall have occurred.

          (i) The holders of less than three percent (3%) of the aggregate of the outstanding Common
Shares shall have delivered notices of intent to demand payment in accordance with Section 180.1321
of the WBCL.

          (j) [INTENTIONALLY OMITTED.]

          (k) The Merging Companies shall have delivered, as applicable, to the Parent each of the
following:

     (i) a certificate of the Secretary of each of the Merging Companies, in a form
reasonably satisfactory to the Parent, setting forth the resolutions of the Board of
Directors of each of the Merging Companies authorizing the execution

12

 

of the
Transaction Documents to which they are a party and the taking of any and all
actions deemed necessary or advisable to consummate the Transactions;

     (ii) a certificate of the Secretary or Assistant Secretary of the Holding
Company, in form reasonably satisfactory to the Parent, certifying that all
requisite approvals of the Merger by the directors and the sole shareholder of the
Merger Sub will have been obtained in accordance with its governing documents;

     (iii) the Escrow Agreement, in the form attached hereto as Exhibit
3.2(k)(iii), duly executed by the Seller Representative on behalf of the
Sellers;

     (iv) a good standing certificate for each of the Merging Companies, issued by
the Wisconsin Department of Financial Institutions, dated not earlier than ten (10)
days prior to the Closing Date;

     (v) a payoff statement from each of the creditors in respect of the obligations
described on Schedule 3.2(k)(v) (the “Excluded Liabilities”) listing all
indebtedness of the Merging Companies to such party as of the Closing Date that the
Holding Company will satisfy at or prior to the Closing pursuant to Section
2.2(a) via the Exchange Agent, acknowledging that payment of such amount will
satisfy all outstanding obligations of the Merging Companies arising in connection
with the Excluded Liabilities and, if applicable, providing wire transfer
instructions (the “Payoff Statements”), together in each case with an executed
release of such creditor in form satisfactory to Parent;

     (vi) An executed Termination and Release Agreement (relating to the pledge of
shares held by certain minority Sellers to secure indebtedness to M&I Marshall &
Ilsley Bank (all of such indebtedness collectively, the “M&I Debt”) for the original
purchase of such Shares), in the form attached hereto as Exhibit 3.2(k)(vi),
terminating each of the Pledge Agreements set forth on Schedule 3.2(k)(vi);

     (vii) Executed Employment Agreements, each substantially in the form attached
hereto as Exhibit 3.2(k)(vii) (the “Employment Agreements”), executed by the
employees of MEA set forth on Schedule 3.2(k)(vii) attached hereto;

     (viii) An executed Termination Agreement, in the form attached hereto as
Exhibit 3.2(k)(viii), terminating the Shareholder Agreements set forth on
Schedule 3.2(k)(viii) and the Investor Rights Agreement;

     (ix) In addition to those Contribution Agreements entered into at the time of
execution and delivery of this Agreement, each substantially in the form attached
hereto, Contribution Agreements shall have been entered into by some or all of the
Sellers named on Schedule 3.2(k)(ix), such that the aggregate amount of
Common Shares contributed by those Sellers and those previously executing
Contribution Agreements equals an aggregate amount of 1,259,259 Common Shares; and

13

 

     (x) An affidavit, under penalties of perjury, stating that the Holding Company
is not and has not been a United States real property holding corporation, dated as
of the Closing Date and in the form and substance required under Treasury Regulation
§ 1.897-2(h) so that the Parent is exempt from withholding any amount under § 1445
of the Code.

     3.3 Conditions Precedent to the Merging Companies’ Obligations. The obligation of the
Merging Companies to consummate the Merger and the other Transactions is subject to the
satisfaction as of the Closing of each of the following conditions:

          (a) The representations and warranties of the Parent and Merger Sub (the “Buyer Parties”) set
forth in Article 5 shall be true and correct on and as of the date of this Agreement and as
of the Closing Date with the same force and effect as though made on and as of the Closing Date,
for any representation or warranty that is limited by its terms to a specific date or range of
dates (in which case such representation and warranty need only be true and correct on the date or
during the range of dates so specified) and except where the failure of any representation and
warranty to be true and correct would not reasonably be expected to have, individually or in the
aggregate, a material adverse effect on the ability of the Buyer Parties to consummate the
Transactions.

          (b) The Buyer Parties have performed in all material respects the covenants of the Buyer
Parties contained in this Agreement required to be performed on or prior to the Closing Date.

          (c) The Buyer Parties shall have delivered to the Holding Company a certificate dated the
Closing Date and signed by an authorized officer of the Buyer Parties stating that each of the
conditions set forth in Sections 3.3(a) and (b) have been satisfied as of the Closing Date.
The statements contained in such certificate are a warranty of the Buyer Parties which survives
the Closing for the period as provided in Article 10.

          (d) There shall be no injunction, restraining order, decree or other Legal Requirement of any
nature that is in effect that restrains or prohibits the consummation of the Merger or any of the
Transactions.

          (e) The applicable waiting period under the HSR Act shall have expired or been terminated.

          (f) The Parent shall have delivered to the Seller Representative the following:

     (i) a certificate of the Secretary of each of the Buyer Parties, in a form
reasonably satisfactory to the Seller Representative, setting forth the resolutions
of the Board of Directors or other governing body of each of the Buyer Parties
authorizing the execution of the Transaction Documents and the taking of any and all
actions deemed necessary or advisable to consummate the Transactions;

     (ii) a certificate of the Secretary of the Parent, in form reasonably
satisfactory to the Seller Representative, certifying that all requisite approvals
of

14

 

the Merger by the directors and the sole shareholder of Merger Sub will have been
obtained in accordance with its governing documents;

     (iii) a good standing certificate for each of the Buyer Parties issued by the
Secretary of State of its jurisdiction of incorporation or organization dated no
earlier than ten (10) days prior to the Closing Date;

     (iv) the Escrow Agreement, duly executed by the Parent;

     (v) payment of the Merger Consideration pursuant to Article 2;

     (vi) the Employment Agreements, duly executed by the Surviving Company each
substantially in the form attached hereto as Exhibit 3.2(k)(vii) with each
of the employees listed in Exhibit 3.2(k)(vii); and

     (vii) the Contribution Agreements, duly executed by the Parent and the Sellers
set forth on Schedule 3.2(k)(ix).

     3.4 Merger Filings. At the Closing, Articles of Merger and such other instruments
required by the WBCL to complete the Merger and the other Transactions shall be executed by the
Holding Company, and subject to the provisions of this Article 3, at Closing the Holding
Company and Merger Sub will cause the Articles of Merger to be filed as provided in Section
1.2 and will take any and all other lawful actions and do any and all other lawful things
necessary to cause the Merger to become effective.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF THE MERGING COMPANIES

     The Merging Companies hereby jointly and severally represent and warrant to the Parent as
follows:

     4.1 Authority; Authorization; Enforceability.

          (a) The Holding Company has the power and authority to enter into the Transaction Documents to
which it is a party, to perform its obligations under each Transaction Document to which it is a
party and to consummate the Transactions. The execution, delivery and performance by the Holding
Company of the Transaction Documents to which it is a party have been duly and validly authorized
by all necessary corporate action on the part of the Holding Company. This Agreement has been, and
at Closing each other Transaction Document to which the Holding Company is a party will be, duly
and validly executed and delivered by the Holding Company. This Agreement constitutes, and at
Closing each other Transaction Document to which the Holding Company is a party will constitute,
the legal, valid and binding obligations of the Holding Company, enforceable against the Holding
Company in accordance with their respective terms, subject in each case to bankruptcy,
reorganization, insolvency and other similar laws affecting the enforcement of creditors’ rights in
general and to general principles of equity (regardless of whether considered in a proceeding in
equity or an action at law).

15

 

          (b) The Operating Companies each have the power and authority to enter into the Transaction
Documents to which it is a party, to perform its respective obligations under each Transaction
Document to which it is a party and to consummate the Transactions. The execution, delivery and
performance by the Operating Companies of the Transaction Documents to which they are a party have
been duly and validly authorized by all necessary corporate action and limited liability company
action, as applicable, on the part of the Operating Companies. This Agreement has been, and at
Closing each other Transaction Document to which the Operating Companies are parties will be, duly
and validly executed and delivered by the Operating Companies. This Agreement constitutes, and at
Closing each other Transaction Document to which the Operating Companies are parties will
constitute, the legal, valid and binding obligations of the Operating Companies, enforceable
against the Operating Companies in accordance with their respective terms, subject in each case to
bankruptcy, reorganization, insolvency and other similar laws affecting the enforcement of
creditors’ rights in general and to general principles of equity (regardless of whether considered
in a proceeding in equity or in an action at law).

          (c) The Holding Company’s Board of Directors has (at a meeting duly called and held prior to
the execution hereof) unanimously (i) approved and declared advisable this Agreement and each of
the other Transaction Documents to which the Holding Company is or will be a party, (ii) determined
that the Transactions are advisable, fair to and in the best interests of the holders of
outstanding Shares of the Holding Company (the “Shareholders”), (iii) recommended the approval and
adoption of this Agreement and the Merger to the Shareholders and (iv) directed that this Agreement
be submitted to the Shareholders for their approval and adoption (the “Shareholder Approval”). For
purposes of this Agreement, the Shareholder Approval shall be deemed obtained only when this
Agreement and the Merger are approved and adopted by the affirmative vote of (x) the holders of a
majority of the outstanding Voting Common Shares, voting as one class, (y) the holder of a majority
of the outstanding Non Voting Common Shares, voting as one class, and (z) the holders of a majority of the outstanding
Preferred Shares, voting as a separate class.

          (d) The affirmative votes constituting the Shareholder Approval are the only approvals of the
Shareholders necessary to approve, authorize and adopt this Agreement, the Merger, the other
Transaction Documents to which the Holding Company is or will be a party and the Transactions and
to consummate the Merger. No other vote, approval or other action is required on the part of the
Holding Company or any of the Operating Companies to approve or adopt this Agreement, the Merger or
the other Transaction Documents to which any of the Merging Companies is or will be party and the
Transactions.

          (e) No actions, approvals, waivers or consents are required on the part of the Holding Company
or any holder of Company Options in order to give effect to the provisions of Section
1.4(e) (regarding the treatment of the Company Options in the Merger).

     4.2 No Conflict. Except (a) for compliance with any applicable requirements of the
HSR Act and (b) as set forth in Schedule 4.2, neither the execution and delivery of any
Transaction Document to which the Merging Companies are a party nor the consummation or performance
of any of the Transactions by any of the Merging Companies (i) contravenes, conflicts with, or
results in a violation of or default under any provision of the applicable

16

 

governance documents of
any of the Merging Companies, (ii) assuming all Governmental Authorizations described in
Section 3.2(f) are obtained, contravenes, conflicts with or results in a violation of or
default under any Legal Requirement or any Order to which any of the Merging Companies, or any of
the assets owned by any of the Merging Companies is subject or (iii) assuming all Required Consents
are obtained, violates or conflicts with, or results in a default under, or gives any Person the
right to declare a default or exercise any remedy under, to accelerate the maturity or performance
of, or to cancel, terminate or modify any Material Contract, or result in the imposition or
creation of any Lien (other than Permitted Liens) upon or with respect to any of the assets owned,
leased or licensed by any of the Merging Companies, except, in each case, where the violation,
conflict, default or imposition or creation of any Lien would not reasonably be expected to have a
Material Adverse Effect.

     4.3 Governmental Approvals. Except for compliance with any applicable requirements of
the HSR Act and as set forth on Schedule 4.3, no action, consent, approval, order or
authorization of, or registration, declaration or filing with, any Governmental Body is required to
be obtained or made in connection with the execution and delivery by any of the Merging Companies
of any Transaction Document to which it is a party or the consummation by any of the Merging
Companies of the Transactions, except, in each case, where the failure to have such action,
consent, approval, order or authorization of or registration, declaration or filing, would not
reasonably be expected to have a Material Adverse Effect.

     4.4 Voting Agreements. Except as set forth on Schedule 4.4, (a) none of the Merging Companies nor, to the
Knowledge of the Holding Company, any other Person, are a party to any voting trust agreement,
power of attorney, shareholders’ agreement, proxy or other Contract relating to the sale, transfer,
purchase, redemption, voting, distribution or dividend rights or disposition of any of the Shares
or otherwise granting any Person any right in respect of the Shares and (b) to the Knowledge of the
Holding Company, there are no existing restrictions on the transfer of the Shares other than the
restrictions imposed by applicable federal and state securities laws.

     4.5 Corporate and Limited Liability Company Matters. The Holding Company and MEA are
corporations validly existing and in good standing under the laws of the State of Wisconsin. MED
is a limited liability company validly existing and in good standing under the laws of the State of
Wisconsin. Each of the Merging Companies have the corporate power or limited liability company
power, as applicable, and authority to own or lease their properties and assets as and where
currently owned or leased and to conduct the Business. Each of the Merging Companies are duly
qualified to do business and are in good standing in each jurisdiction in which the nature of the
Business or the ownership or leasing of its assets makes such qualification necessary, except where
the lack of such qualification would not have a Material Adverse Effect.

     4.6 Documentation. The articles of incorporation, by-laws and ownership record books
of the Merging Companies, in the form made available for inspection by the Parent and its Agents
prior to the date of this Agreement, are true and complete in all material respects.

     4.7 Capitalization.

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          (a) The authorized capital stock of the Holding Company consists of 5,000,000 Shares of Voting
Common Stock, par value $.01 per Share (the “Voting Common Shares”), of which 2,519,000 Shares are
issued and outstanding as of the date hereof, 5,000,000 Shares of Non-Voting Common Stock, par
value $.01 per Share (the “Non-Voting Common Shares”), of which 558,020.2308 Shares are issued and
outstanding as of the date hereof (44,348.22 of which are Shares of Restricted Stock) and 1,000,000
Preferred Shares, of which 251,685 Preferred Shares are issued and outstanding as of the date
hereof. As of the date hereof and as of Closing, options to acquire up to 15,498 additional
Non-Voting Common Shares have been granted and, as of Closing, will have fully vested and be
exercisable. Schedule 4.7 accurately sets forth the name of each holder of Company
Options, the number of Shares issuable upon exercise of the Company Options and the applicable
exercise prices. Except as set forth on Schedule 4.7, (a) the Shares constitute all the
issued and outstanding ownership interests of the Holding Company, of whatever class, series or
designation and (b) there are no outstanding warrants, options, subscriptions, convertible or
exchangeable securities or other agreements pursuant to which the Holding Company or any other
Merging Company is or may become obligated to issue or sell any ownership interests or other
securities of the Holding Company. Except as set forth on Schedule 4.7, there are no
outstanding or authorized equity
appreciation, phantom equity, equity plans or similar rights with respect to the equity
securities of the Holding Company or any other Merging Company. As of January 31, 2008, the
aggregate liquidation preference of the Preferred Shares will be $34,024,874.46 (including
$8,856,374.46 in accrued unpaid dividends).

          (b) All of the issued and outstanding Shares of capital stock of the Holding Company were
offered, issued and sold in full compliance with all applicable federal and state securities laws
and the Holding Company has not received, or been advised of any notice or allegation to the
contrary.

     4.8 Subsidiaries.

          (a) Schedule 4.8 sets forth a true and complete list, containing the name,
jurisdiction of organization and capitalization of each Subsidiary. Except as set forth on
Schedule 4.8, the Holding Company has no Subsidiaries. All of the issued and outstanding
shares of capital stock or equity interests, as applicable, of the Subsidiaries are fully paid and
nonassessable, except as provided under applicable federal and state securities laws. The Holding
Company holds of record and owns beneficially all of the outstanding shares or equity interest, as
applicable, of each Subsidiary and there are no outstanding warrants, options, subscriptions,
convertible or exchangeable securities or other agreements pursuant to which any Subsidiary is or
may become obligated to issue or sell any shares of capital stock, equity interest or other
securities of such Subsidiary. The Holding Company does not own, nor is the Holding Company a
party to any Contract to acquire, any equity securities or securities of any Person or any direct
or indirect equity or ownership in any other business.

          (b) There are no voting trust agreements, powers of attorney, shareholder agreements,
operating agreements, proxies or any other Contracts, relating to the sale, transfer, voting,
dividend rights or disposition of any of the outstanding shares of capital stock or equity
interests, as applicable, of any Subsidiary or otherwise granting any Person any right in respect
of the outstanding shares of capital stock or equity interests, as applicable, of any Subsidiary
and

18

 

there are no existing restrictions on the transfer of such outstanding shares of capital stock
or equity interests, as applicable, of any Subsidiary other than restrictions imposed by applicable
federal and state securities laws.

     4.9 Tangible Personal Property. All of the material tangible personal property
reflected on the Most Recent Balance Sheet or otherwise used by the Operating Companies in the
operation of their Business is either (a) owned by such Operating Company or (b) leased pursuant to
valid leasehold interests, in each case free and clear of all Liens, other than Permitted Liens
(including those described on Schedule 4.9).

     4.10 Leased Real Estate. Schedule 4.10 sets forth each Real Estate Lease.
Except as otherwise set forth on Schedule 4.10:

          (a) each Real Estate Lease is a valid and binding obligation of MEA, enforceable against MEA,
as the case may be, in accordance with its terms (except as enforceability may be limited by
bankruptcy, insolvency, moratorium, fraudulent conveyance and other similar laws affecting
creditors’ rights generally and by general principles of equity);

          (b) to the Knowledge of the Holding Company, neither MEA nor any other party to any such Real
Estate Lease is in material breach or material default under such Real Estate Lease, except for:
(i) such defaults and events as to which requisite waivers or consents have been obtained; and (ii)
breaches or defaults which, in the aggregate, would not reasonably be expected to have a Material
Adverse Effect; and

          (c) the consummation of the Transactions does not require the consent of any landlord,
sub-landlord or other Person under any such Real Estate Lease.

     4.11 Owned Real Estate. The Merging Companies do not own in fee simple any real
property.

     4.12 Proceedings. Except as set forth in Schedule 4.12, there is no
Proceeding pending or to the Knowledge of the Holding Company threatened against any of the Merging
Companies that would in either case reasonably be expected to have a Material Adverse Effect. No
Merging Company is subject to any Order which prohibits or enjoins the consummation of the
Transactions.

     4.13 Intellectual Property.

          (a) Schedule 4.13 contains a complete and correct list, as of the date hereof, of all
patents and patent applications, trademark registrations and applications, and copyright
registrations and applications owned by the Merging Companies that are material to the Business
(collectively, the “Listed Intellectual Property”).

          (b) Except as set forth on Schedule 4.13, to the Knowledge of the Holding Company,
either the Holding Company or MEA owns (or will own on the Closing Date) or has the right to use
(or will have the right to use on the Closing Date), in the United States, without payment of a
royalty, license fee or similar fee to any other party (other than pursuant to an agreement set
forth on Schedule 4.13 or any agreement that is not a Material Contract), the

19

 

patents,
trademarks, trade names and copyrights used by the Merging Companies in the Business, except where
the failure of the Merging Companies to own or have the right to use any such patent, trademark,
trade name or copyright would not reasonably be expected to have a Material Adverse Effect. Except
as set forth on Schedule 4.13, to the Knowledge of the Holding Company, the conduct of the
Business does not infringe on the intellectual property rights of any Person, in the United States,
except for such infringements which in the aggregate would not reasonably be expected to have a
Material Adverse Effect.

          (c) Except as set forth on Schedule 4.13, no Proceedings are pending or, to the
Knowledge of the Holding Company, threatened against any of the Merging Companies by any
other Person before any Governmental Body challenging or questioning either the right of any
of the Merging Companies to use, or the validity of, any Listed Intellectual Property (other than
claims, challenges, or questions by governmental intellectual property office examiners as part of
the application process), except for Proceedings that would not reasonably be expected to have a
Material Adverse Effect.

          (d) Except as set forth on Schedule 4.13, to the Knowledge of the Holding Company, no
other Person has claimed in writing against any of the Merging Companies and continues to claim the
right to use in an infringing manner any Listed Intellectual Property other than pursuant to an
agreement set forth on Schedule 4.16 or an arrangement that is not a Material Contract,
except as would not reasonably be expected to have a Material Adverse Effect.

     4.14 Financial Statements.

          (a) The Holding Company has delivered the following financial statements (the “Financial
Statements”) to the Parent, which are attached to Schedule 4.14: (a) the audited
consolidated balance sheet of the Holding Company as of December 31, 2006 (including the notes
thereto), and the related audited consolidated statements of operations, shareholders’ equity and
cash flows of the Holding Company for the year ended December 31, 2006 and (b) the unaudited
consolidated balance sheet of the Holding Company as of November 30, 2007 (the “Most Recent Balance
Sheet”) and the related unaudited consolidated statements of operations and cash flows of the
Holding Company for the eleven (11) months then ended (the “Interim Financial Statements”). Except
as set forth on Schedule 4.14 and in light in all respects of the fact that the Financial
Statements reflect a substantial portion of the Holding Company’s income, shareholders’ equity and
cash flows on a “percentage of completion method”: (i) each of the Financial Statements has been
prepared in accordance with GAAP applied on a basis consistent with prior periods (except as may be
indicated in any notes thereto), (ii) each of such balance sheets fairly presents in all material
respects the consolidated financial position of the Holding Company as of its respective date and
(iii) each of such statements of operations and cash flows fairly presents in all material respects
the results of operations of the Holding Company for the period covered thereby; provided,
however, that the Interim Financial Statements are subject to normal reclassifications,
adjustments and lack footnotes and other presentation items; provided, further,
that for purposes of this representation, in determining whether a statement of operations and cash
flows fairly presents the results of operations of the Holding Company, negative variances on
percentage of completion items shall be deemed to be offset by positive variances of comparable
amounts.

20

 

          (b) None of the Holding Company or its consolidated subsidiaries has any Indebtedness, whether
or not required to be reflected or reserved against on a consolidated balance sheet of the Holding
Company and its subsidiaries prepared in accordance with GAAP, except for any such Indebtedness (i)
set forth, reflected in or reserved against in the Most Recent Balance Sheet or (ii) incurred in
the ordinary course of business since October 31, 2007 and that could not individually or in the
aggregate reasonably be expected to have a Material Adverse Effect.

     4.15 Taxes.

          (a) Except as set forth on Schedule 4.15, all Returns required to be filed by the
Merging Companies or any Subsidiaries thereof for all Taxable Periods ending prior to the date
hereof have been duly and timely (within any applicable extension periods) filed with the
appropriate Tax Authorities in all jurisdictions in which such Returns are required to be filed.
All such Returns are correct and complete and all Taxes shown to be due and payable on such Returns
or otherwise due have been timely paid. The Tax bases of the intangible assets of the Merging
Companies and all Subsidiaries thereof shown on the Returns of such companies are correct and
complete in all respects. All amortization deductions arising from the acquisition of MEA in 2004
are properly allowable deductions under Section 197 of the Code. All Taxes that the Merging
Companies or any Subsidiaries thereof are required by any Legal Requirement to withhold or collect
have been duly withheld or collected and have been timely paid over to the appropriate Tax
Authority to the extent due and payable.

          (b) There is no claim or assessment pending or, to the Knowledge of the Holding Company,
threatened against any of the Merging Companies or any Subsidiaries thereof by any Tax Authority
for any alleged deficiency in Taxes.

          (c) No Merging Company or any Subsidiaries thereof has: (i) executed a waiver or consent
extending any statute of limitations for the assessment or collection of any Taxes which remain
outstanding; (ii) applied for a ruling related to Taxes; or (iii) entered into a closing agreement
with any Tax Authority.

          (d) To the Knowledge of the Holding Company, none of the Returns of any of the Merging
Companies or any of their Subsidiaries filed with respect to Tax years beginning on or after
January 1, 2004 has been or is currently being examined by the relevant Tax Authorities. There are
no examinations or other administrative or court proceedings relating to Taxes of any Merging
Company or any of their Subsidiaries in progress or pending or, to the Knowledge of the Holding
Company, threatened.

          (e) No Merging Company or any Subsidiaries thereof is a party to any written agreement
providing for the allocation or sharing of Taxes. No Merging Company or any Subsidiaries thereof
is liable for the Taxes of any other Person under law, by contract, as transferee or otherwise
(except for the other respective Tax liabilities of any member of the affiliated group (within the
meaning of §1504 of the Code) of which the Holding Company is the common parent).

21

 

          (f) No Merging Company or any Subsidiaries thereof is or has been a United States real
property holding corporation within the meaning of §897(c)(2) of the Code during the period
specified in §897(c)(1)(A)(ii) of the Code.

          (g) No written claim has ever been made by any Tax Authority in a jurisdiction where any of
the Merging Companies or any of their Subsidiaries do not file Returns that any such company is or
may be subject to taxation by that jurisdiction.

          (h) There are no liens for Taxes (other than Taxes not yet due and payable) upon any of the
assets of the Merging Companies or any Subsidiaries thereof.

          (i) No Merging Company or any Subsidiary thereof is a party to any agreement, contract,
arrangement or plan that has resulted or could result, separately or in the aggregate, in the
payment of:

     (i) Any “excess parachute payment” within the meaning of §280G of the Code;

     (ii) Any amount that will not be fully deductible as a result of §162(m) of the
Code; or

     (iii) Any amount that is subject to §409A of the Code.

          (j) No Merging Company or any of their Subsidiaries 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) Intercompany transaction or excess loss account described in Treasury
Regulations under §1502 of the Code (or any corresponding or similar provision of
state, local or foreign income Tax law);

     (iii) Installment sale or open transaction disposition made on or prior to the
Closing Date; or

     (iv) Prepaid amount received on or prior to the Closing Date.

          (k) No Merging Company or any Subsidiary thereof has engaged in any reportable transaction as
defined under §6111 of the Code.

     4.16 Material Contracts. Except for all subcontracts of any Merging Company that
would otherwise constitute a Material Contract, Schedule 4.16 sets forth a list of all
Material Contracts. Except as set forth on Schedule 4.16, (a) each Material Contract is a
valid and binding obligation of the Holding Company, MEA or MED as indicated, enforceable against
such Merging Company in accordance with its terms (except as enforceability may be limited by
bankruptcy, insolvency, moratorium, fraudulent conveyance and other similar laws affecting

22

 

creditors’ rights generally and by general principles of equity), (b) to the Knowledge of the
Holding Company, none of the Merging Companies nor any other party to any Material Contract are in
material breach or material default under any Material Contract, which breach or default would
reasonably be expected to have a Material Adverse Effect and (c) none of the Merging Companies
have, and, to the Knowledge of the Holding Company, no other party to such Material Contract has,
terminated any Material Contract; provided, however, that for purposes of this
representation, in
determining whether a breach of this Section 4.16 has occurred which breach relates to
job-cost estimations, negative variances on percentage of completion items shall be deemed to be
offset by positive variances of comparable amounts.

     4.17 Employees. The payroll information contained in the data room previously
furnished to the Parent in writing is true and correct at the dates indicated, and since such dates
there have been no material changes to such data.

     4.18 Labor and Employment Matters. To the Knowledge of the Holding Company, except as
set forth on Schedule 4.18, (a) none of the Merging Companies are in violation of any Legal
Requirement pertaining to employees or employment matters, except as would not reasonably be
expected to have a Material Adverse Effect and (b) no Merging Company is a party to any collective
bargaining agreement or other labor union contract applicable to any of its employees, and to the
Knowledge of the Holding Company there are no strikes, slowdowns, work stoppages, lockouts, or
threats thereof by or with respect to any such employees.

     4.19 Employee Benefit Plans; ERISA.

          (a) Except as set forth on Schedule 4.19, none of the Merging Companies maintain,
contribute to or have any obligation to make contributions to, any employee benefit plan (an “ERISA
Plan”) within the meaning of §3(3) of ERISA, or any other retirement, profit sharing, stock option,
stock bonus or deferred compensation, severance, sick leave or other material plan or arrangement
providing benefits to current or former employees, officers or directors, in each case whether or
not terminated, of any of the Merging Companies (a “Non-ERISA Plan” and, collectively, with all
ERISA Plans, the “Benefit Plans”). Except as set forth on Schedule 4.19, to the Knowledge
of the Holding Company, all Benefit Plans are being maintained and operated in all material
respects in accordance with all Legal Requirements applicable to such plans and the terms and
conditions of the respective plan documents, except where the failure to so maintain or operate
would not reasonably be expected to have a Material Adverse Effect. The IRS has issued, or is
deemed to have issued, a favorable determination letter with respect to each ERISA Plan that is
intended to be a “qualified plan” within the meaning of §401(a) of the Code. No ERISA Plan is
subject to Title IV or §302 of ERISA or §412 of the Code. No ERISA Plan is a Multiemployer Plan or
a plan that has two or more contributing sponsors at least two of whom are not under common
control, within the meaning of §4063 of ERISA. Except as set forth on Schedule 4.19, and
except for continuation coverage as required by §4980B of the Code or by applicable state insurance
Legal Requirements, no Benefit Plan provides life, health, medical or other welfare benefits to
former employees or beneficiaries or dependents thereof.

          (b) The Holding Company has delivered to the Parent, to the extent applicable, correct and
complete copies of the current plan documents and summary plan

23

 

descriptions, the most recent
determination letter received from the IRS, the most recent Form
5500 Annual Reports and all accompanying schedules, and all related trust agreements,
insurance contracts and other funding arrangements which implement each Benefit Plan.

          (c) All contributions (including all employer contributions and employee salary reduction
contributions, if any) which are due have been made within the time period prescribed by ERISA to
each ERISA Plan which is an Employee Pension Benefit Plan (within the meaning of §3(2) of ERISA).

          (d) None of the Merging Companies nor, to the Knowledge of the Holding Company, any trustee or
administrator of any such ERISA Plan, have engaged in any transaction with respect to such ERISA
Plan which would subject any of the Merging Companies to either a material civil penalty assessed
pursuant to §502(i) of ERISA or a material Tax or penalty on prohibited transactions imposed by
§4975 of the Code. No Proceedings with respect to the assets of any such ERISA Plan (other than
routine claims for benefits) are pending or, to the Knowledge of the Holding Company, threatened by
or before any Governmental Body which would reasonably be expected to have a Material Adverse
Effect.

     This Section 4.19, together with Section 4.17 (employees) and Section
4.18 (labor and employment matters), contain the sole and exclusive representations and
warranties of the Merging Companies with respect to any employment or labor matters with respect to
the Merging Companies, including any matters arising under ERISA.

     4.20 Events Since Balance Sheet Date. Since the date of the Most Recent Balance
Sheet, the Merging Companies have not suffered any Material Adverse Effect and no event, action or
omission has occurred that, if occurring after the date of this Agreement without Parent’s consent,
would breach Section 6.2.

     4.21 Environmental, Health and Safety Matters. Except as set forth on Schedule
4.21:

          (a) To the Knowledge of the Holding Company, the Merging Companies are in compliance with all
Environmental, Health and Safety Laws, except where the failure to so comply would not reasonably
be expected to have a Material Adverse Effect. Each Merging Company holds and is in compliance
with all Governmental Authorizations required to be held by such Merging Company under
Environmental, Health and Safety Laws, except where the failure to hold any such Governmental
Authorization or to comply with any such Governmental Authorization would not reasonably be
expected to have a Material Adverse Effect.

          (b) None of the Merging Companies have received written notice from any third party, including
any Governmental Body, that any of the Merging Companies have been identified by the United States
Environmental Protection Agency as a potentially responsible party under CERCLA with respect to a
site listed on the National Priorities List, 40 C.F.R. Part 300 Appendix B.

          (c) To the Knowledge of the Holding Company, no off-site location at which any of the Merging
Companies have disposed or arranged for the disposal of any waste is listed on the National
Priorities List or on any comparable state list.

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          (d) To the Knowledge of the Holding Company, none of the Merging Companies have released any
Materials of Environmental Concern at or from any Leased Real Estate, except as would not
reasonably be expected to have a Material Adverse Effect.

          (e) To the Knowledge of the Holding Company, no underground storage tanks are located on the
Leased Real Estate that: (i) contain or previously contained any Materials of Environmental
Concern; and (ii) are owned or operated by any of the Merging Companies.

This Section 4.21 contains the sole and exclusive representations and warranties of the
Merging Companies with respect to any environmental, health and safety matters with respect to the
Merging Companies, including any matters arising under any Environmental, Health and Safety Laws.

     4.22 Insurance. Schedule 4.22 sets forth a list of all policies of fire,
liability, workmen’s compensation, life, property and casualty and other insurance owned or held by
any of the Merging Companies in the ordinary course of business for the current period that
includes the date hereof under which any of the Merging Companies are the primary insured, other
than policies or insurance related to the Benefit Plans (the “Insurance Policies”). To the
Knowledge of the Holding Company, all of the Insurance Policies are in full force and effect.
Since the respective dates of the Insurance Policies, no written notice of cancellation or non
renewal with respect to any such policy has been received by any of the Merging Companies. Except
as set forth on Schedule 4.22 and other than related to the Benefit Plans, none of the
Merging Companies have any self insurance or co-insurance programs.

     4.23 Compliance With Legal Requirements; Governmental Authorizations. Except with
respect to (a) intellectual property matters (which are addressed in Section 4.13), (b)
employment and labor matters (which are addressed in Sections 4.17, 4.18 and 4.19) and (c)
environmental, health and safety matters (which are addressed in Section 4.21), (i) the
Merging Companies are, and at all times in the past have been, in compliance with all Legal
Requirements, except where the failure to comply would not reasonably be expected to have a
Material Adverse Effect, (ii) no written notice from any Governmental Body has been received by any
of the Merging Companies nor, to the Knowledge of the Holding Company, is any Proceeding pending
with respect to any alleged violation by any of the Merging Companies of any Legal Requirement,
(iii) the Merging Companies have all Governmental Authorizations required by all applicable Legal
Requirements in the operation of the Business, except where the failure to have such Governmental
Authorizations would not reasonably be expected to have a Material Adverse Effect and (iv) the
Merging Companies are in compliance with such Governmental Authorizations, except where the failure
to be in compliance with such
Governmental Authorizations would not reasonably be expected to have a Material Adverse
Effect.

     4.24 Brokers; Agents. Neither the Merging Companies nor any of their Affiliates or
representatives have dealt with any agent, finder, broker or other representative in any manner
which could result in the Parent or the Surviving Company being liable for any fee or commission in
the nature of a finder’s fee or originator’s fee or financial advisory fee in connection with the Transactions. The fee due to Wachovia Bank, N.A. in connection with the

25

 

Transactions is the sole
responsibility of the Sellers and neither the Parent nor the Surviving Company will have any
liability whatsoever with respect thereto.

     4.25 Affiliate Transactions.

          (a) Except for the following, the Merging Companies have no further obligations pursuant to
any written management, consulting or similar agreement with any officer, director, five percent
(5%) or greater member, shareholder or Affiliate of the Merging Companies: (a) as set forth on
Schedule 4.25; (b) normal advances to employees consistent with past practice; (c) payment
of compensation for employment or reimbursement of expenses to employees consistent with past
practice; (d) participation in the Benefit Plans by employees; (e) transactions or agreements
between or among shareholders of the Merging Companies; and (f) agreements or arrangements that
will be terminated without further liability to any of the Merging Companies prior to or at
Closing.

          (b) The property and assets (whether real or personal, tangible or intangible) reflected in
the Financial Statements or acquired after the date of the Financial Statements constitute all of
the assets, properties and rights used in the conduct of the business as heretofore conducted by
the Merging Companies. Immediately following the Closing, neither the Sellers nor any of their
affiliates will own or lease any assets, properties or rights that are used in the conduct of the
business of the Merging Companies. There are no facilities, services, assets or properties that
are owned or used in the conduct of the business by any of the Merging Companies that are shares
with any other Person.

     4.26 Indebtedness.

     The indebtedness and other obligations secured by the security interest reflected in UCC
Financing Statement 040000745218 (the “UCC Financing Statement”) have been discharged in full, and
UCC Termination Statement 070016948533 terminating such security interest reflected in the UCC
Financing Statement has been duly filed with the Wisconsin Department of Financial Institutions.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF BUYER PARTIES

     The Buyer Parties hereby jointly and severally represent and warrant to the Holding Company
and the Sellers, which representations and warranties survive the Closing for the periods, and
subject to the limitations, set forth in Article 10, that the following statements are true
and correct as the date hereof:

     5.1 Authority. Parent is a limited partnership, validly existing and in good standing
under the laws of the State of Delaware, and Merger Sub is a corporation validly existing and in
good standing under the laws of the State of Wisconsin. The Parent has the limited partnership
power and authority and the Merger Sub has the corporate power and authority to own or lease its
properties and assets and to carry on all business activities currently conducted by it. The
Parent has the limited partnership power and authority and the Merger Sub has the corporate power
and authority to enter into the Transaction Documents to be signed by it and to consummate the
Transactions. The execution and delivery of the Transaction Documents to

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which any of the Buyer
Parties is a party and the consummation of the Transactions have been duly and validly authorized
by all necessary limited partnership action on the part of the Parent and all necessary corporate
action on the part of the Merger Sub, as applicable. This Agreement has been, and at Closing each
other Transaction Document to which any of the Buyer Parties is a party will be, duly and validly
executed and delivered by an authorized representative of such Buyer Parties, as applicable. This
Agreement constitutes, and at Closing each other Transaction Document to which any of the Buyer
Parties is a party will constitute, the legal, valid and binding obligations of such Buyer Parties,
as applicable, enforceable against such Buyer Parties, as applicable, in accordance with their
respective terms subject in each case to bankruptcy, reorganization, insolvency and other similar
laws affecting the enforcement of creditors’ rights in general and to general principles of equity
(regardless of whether considered in a proceeding in equity or an action at law).

     5.2 No Conflict. Neither the execution and delivery of the Transaction Documents by
the Buyer Parties nor the consummation or performance of any of the Transactions (a) contravenes,
conflicts with, or results in a violation of or default under any provision of the articles of
incorporation, bylaws or other organizational documents of any of the Buyer Parties, (b)
contravenes, conflicts with, or results in a violation of or default under any Legal Requirement or
any Order to which any of the Buyer Parties may be subject or (c) violates or conflicts with, or
results in a default under, or gives any Person the right to declare a default or exercise any
remedy under, to accelerate the maturity or performance of, or to cancel, terminate or modify any
material Contract to which any of the Buyer Parties is subject. Except for compliance with any
applicable requirements of the HSR Act, no action, consent, approval, order or authorization of, or
registration, declaration or filing by any of the Buyer Parties with, any Governmental Body is
required to be obtained or made in connection with the execution and delivery of the Transaction
Documents by the Buyer Parties or the consummation by the Buyer Parties of any of the Transactions.

     5.3 Proceedings. There is no Proceeding pending against or relating to any of the
Buyer Parties which, if determined adversely to any of the Buyer Parties could affect the ability
of any of the Buyer Parties to consummate the Transactions.

     5.4 Brokers; Agents. Except for the fee due KeyBanc Capital Markets Inc. which will
be paid by the Buyer Parties in connection with the closing of the Transactions, none of the Buyer
Parties or any of their respective Affiliates has dealt with any agent, finder, broker or other
representative in any manner (other than KeyBanc Capital Markets Inc.) which could result in the
Sellers or, if the Closing does not occur, any of the Merging Companies being liable for any fee or
commission in the nature of a finder’s or originator’s fee in connection with the Transactions.

     5.5 Sufficient Funds. On the Closing Date, the Buyer Parties shall have the financial
capability and on the date hereof have all financing commitments necessary to have the financial
capability to consummate the Merger on the terms and subject to the conditions set forth in this
Agreement.

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ARTICLE 6

PRE-CLOSING COVENANTS

     6.1 Access to Information. From and after the date hereof and until the Closing, upon
reasonable notice, the Merging Companies will provide to the Parent and its authorized Agents
reasonable access during normal business hours to the offices, books and records, Returns,
Contracts, commitments, facilities and accountants of the Merging Companies, and will furnish and
make available to the Parent and its authorized Agents all such documents and copies of documents
(at the Parent’s expense) and all such additional financial and operating data and other
information pertaining to the affairs of the Merging Companies as the Parent and its authorized
Agents may reasonably request; provided, however, that (a) the activities of the
Parent and its Agents will be conducted in such a manner as not to interfere unreasonably with the
operation of the businesses of the Merging Companies and (b) in no event are the Merging Companies
required to furnish the Parent or its Agents with any documents or information that (i) the Merging
Companies are required by Legal Requirement, Order or Contract to keep confidential or (ii) that
would reasonably be expected to jeopardize the status of such document or information as
privileged, work product or as a trade secret. Notwithstanding the foregoing, prior to the Closing
Date, without the prior written consent of the Merging Companies none of the Buyer Parties nor any
of their Agents may contact any suppliers to or customers, employees or directors of, the Merging
Companies in connection with or pertaining to any subject matter of this Agreement.

     6.2 Operation of Business of Company Prior to Closing.

     The Merging Companies jointly and severally represent, warrant and covenant that, except (i)
as otherwise expressly provided in this Agreement (including as described on Schedule 6.2
and the other Transaction Documents) or (ii) as otherwise approved by Parent, during the period
commencing on the date hereof and ending on the Closing Date, each of the Merging Companies shall
use its reasonable best efforts to conduct its business in the ordinary course and maintain and
preserve intact its business organization and relationships with third parties and keep available
the services of its present officers and employees and preserve its relationships with customers,
suppliers and others having business dealings with them, in each case in all material respects.
Until the Closing, except (i) as otherwise expressly provided in this Agreement (including as
described on Schedule 6.2 and the other Transaction Documents) or (ii) as otherwise
approved by Parent none of the Merging Companies shall, take any of the following actions:

     (i) amend its articles of incorporation or bylaws or equivalent documents;

     (ii) (i) declare, set aside, pay or make any dividend or other distribution
with respect to its shares of capital stock, other than any such dividends or
distributions to the Holding Company in the ordinary course of business, (ii)
authorize for issuance, issue, grant, deliver, sell, pledge, dispose of or otherwise
encumber shares of its capital stock or other securities or issue any rights to
subscribe for or acquire any shares of its capital stock (other than the issuance of
shares of capital stock upon the exercise following the date of this

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Agreement of
Company Options outstanding on the date of this Agreement and in accordance with the
existing terms of such Company Options), (iii) split, combine or reclassify any
shares of its capital stock or (iv) repurchase, redeem or acquire, or any amend any
term of, any outstanding shares of capital stock or other securities;

     (iii) make any material change to its methods of accounting in effect on the
date hereof, except as required by changes in GAAP as concurred with by the
Company’s independent auditors, change its fiscal year or revalue any of its assets;

     (iv) except in the ordinary course of business, (i) enter into, modify any
material term of, or terminate, any Material Contract, (ii) waive, release or assign
any rights or claims other than immaterial rights or claims in the ordinary course
of business or (iii) waive the benefits of, or agree to modify in any manner, any
material confidentiality, standstill or similar agreement;

     (v) sell, transfer, assign, lease, license or otherwise dispose of or encumber
any of the material assets pertaining to its business, other than (i) sales of
inventory in the ordinary course of business and (ii) dispositions of immaterial
tangible personal property not required for use in its business;

     (vi) acquire by merger or consolidation with, or merge or consolidate with or
into, or purchase substantially all of the equity interests or assets of, or
otherwise acquire any material business of, any corporation, partnership,
association or other business organization or division thereof, or adopt a plan of
complete or partial liquidation, dissolution, restructuring or other reorganization;

     (vii) (x) take any action with respect to the grant of any material severance
or termination pay (other than pursuant to policies or agreements in effect on the
date hereof) which will become due and payable on or after the Closing Date, except
as otherwise required by Legal Requirement or consistent with past practices; (y)
make any material change in its key management structure, including, without
limitation, the hiring of additional officers or the termination of existing
officers, other than in the ordinary course of business; or (z) adopt, enter into or
amend any material provision of any Benefit Plan;

     (viii) settle any claim, litigation or action, whether now pending or hereafter
made or brought, other than immaterial claims occurring in the ordinary course of
business and other than any such settlement providing solely for the payment of
money in satisfaction in full of such claim, litigation or action to the extent such
payment or obligation to pay is reflected in a reserve reflected on the Most Recent
Balance Sheet;

     (ix) cancel (x) any indebtedness owed to it by any Affiliate or (y) any third
party indebtedness owed to it in excess of $50,000 in the aggregate;

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     (x) make or commit to make any capital expenditure if, after giving effect
thereto, the capital expenditures made or committed to be made after the date of
this Agreement would exceed $100,000 in the aggregate, or enter into any lease of
capital equipment or property under which the annual lease charges exceed $100,000
in the aggregate;

     (xi) make or change any material election in respect of Taxes, adopt or change
any accounting method in respect of Taxes and items stated on Tax returns, file any
material Tax return (except in the ordinary course of business), enter into any
closing agreement or settle any claim or assessment in respect of material Taxes, or
surrender any right to claim a material Tax refund or consent to any extension or
waiver of the limitation period applicable to any claim or assessment in respect of
material Taxes;

     (xii) enter into any transaction with any of its Affiliates other than pursuant
to arrangements in effect on the date hereof;

     (xiii) (i) make any changes in the terms of employment of any officer and
director outside the ordinary course of business, (ii) increase the compensation,
bonus or other benefits of any director, officer, consultant or employee, except for
increases in the ordinary course of business that are consistent with past practice,
or increases required pursuant to any Benefit Plan, (iii) other than in the ordinary
course of business, enter into, amend or modify any employment, consulting,
severance, termination or similar agreement with any
director, officer or employee, or otherwise increase the compensation of any
director, executive officer or employee, or other than as set forth on Schedule
6.2(xiii), grant any bonuses to any director, executive officer or employee,
(iv) accelerate the payment of compensation or benefits to any director, officer or
employee, except for payment required under any Benefit Plan or (v) take any action
that could give rise to severance benefits payable to any officer, director, or
employee of the Company or Company Sub as a result of consummation of any of the
transactions contemplated by this Agreement;

     (xiv) grant or authorize or propose any grant of any options, appreciation
rights or other rights to acquire securities or, except as permitted in or
contemplated by this Agreement, accelerate, amend or change the period of
exercisability or vesting of options or other rights granted under any stock plans
or authorize cash payments in exchange for any options or other rights granted under
any of such plans;

     (xv) except in the ordinary course of business, (w) create, incur or assume any
long-term debt, (x) create, incur or assume any Lien on any material asset other
than trading Liens and Liens under equipment leases, in each case, entered into in
the ordinary course of business, (y) assume, guarantee, endorse or otherwise become
liable or responsible (whether directly, contingently or otherwise) for any
obligations of any Person or (z) make any loans, advances or capital contributions
to or investments in any Person; or

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     (xvi) agree, whether in writing or otherwise, to do any of the foregoing.

     Notwithstanding the foregoing, nothing in this Section 6.2 prohibits the Merging
Companies from taking any action or omitting to take any action as required or as contemplated by
this Agreement, as required by Legal Requirement, or otherwise approved in writing by the Parent,
which approval may not be unreasonably withheld or delayed.

     6.3 HSR Act. Each of the Holding Company and the Parent will, to the extent required
by any applicable Legal Requirement and, if so required, as soon as practicable following the
execution and delivery of this Agreement by the parties hereto (but in no event later than fifteen
(15) days) thereafter, file or cause their respective ultimate parents to file, with the FTC and
the DOJ the notification and report form required for the Transactions and any supplemental
information requested in connection therewith pursuant to the HSR Act. Any such notification and
report form and supplemental information will be in substantial compliance with the requirements of
the HSR Act. The Holding Company and the Parent will furnish to the other such necessary
information and reasonable assistance as the other may request in connection with its preparation
of any filing or submission which is necessary under the HSR Act. The Holding Company and the
Parent will keep each other apprised of the status of any communications with, and any inquiries or
requests for additional information from, the FTC and the DOJ and will comply promptly with any
such inquiry or request. The Holding Company and the Parent will use their commercially reasonable
efforts to obtain any clearance required under the HSR Act for the
Transactions, provided, however, that under no circumstances shall the Parent
or its Affiliates be required to agree to any divestiture or hold separate arrangements or any
limitation on the operation of any business (including, after the Merger, any business of the
Merging Companies). The Parent is solely responsible for any filing fees payable by the Parent or
the Holding Company under the HSR Act.

     6.4 Efforts to Consummate. Each of parties hereto will use its commercially
reasonable efforts to take, or cause to be taken, all lawful and reasonable actions within such
party’s control and to do, or cause to be done, all lawful and reasonable things within such
party’s control necessary to fulfill the conditions precedent to the obligations of the other
party(ies) hereunder and to consummate and make effective as promptly as practicable the
Transactions and to cooperate with each other in connection with the foregoing. Without limiting
the generality of the foregoing (a) the Holding Company will use commercially reasonable efforts to
obtain the Required Consents, (b) the Holding Company will give any notices to, make any filings
with, and use commercially reasonable efforts to obtain the Governmental Authorizations described
in Section 3.2(f). Nothing in this Agreement is construed as an attempt or an agreement by
the Holding Company to assign or cause the assignment of any Contract or Governmental Authorization
which is by Legal Requirement non assignable without the consent of the other party or parties
thereto, unless such consent has been given. In no event are “commercially reasonable efforts”
deemed to require the payment of any cash or other consideration, or the making of any material
concession, by any party to this Agreement or any of their respective Affiliates.

     6.5 Shareholders Meeting. The Holding Company shall, in accordance with the WBCL and
its Articles of Incorporation and Bylaws, as promptly as reasonably practicable, duly call, give
notice of, convene and hold a special meeting of the Holding Company’s shareholders

31

 

(the
“Shareholders Meeting”) for the purpose of obtaining the Shareholder Approval. The notice of the
meeting shall include the notice of dissenters’ rights required by Section 180.1320 of the WBCL.
The notice of the Shareholders Meeting shall be accompanied by a proxy statement that is in form
and substance reasonably acceptable to the Parent, which shall include the recommendation of the
Holding Company’s Board of Directors that the Shareholder Approval be given.

     6.6 Execution of Additional Documents. Prior to Closing, from time to time, as and
when requested by a party hereto, each party hereto will execute and deliver, or cause to be
executed and delivered, all such documents and instruments and will take, or cause to be taken, all
such further or other actions as such other party may reasonably deem necessary to consummate the
Transactions or otherwise give effect to the provisions of this Agreement.

     6.7 Publicity. Except as provided in Section 8.3, no public release or
announcement concerning the Transactions may be issued by any party hereto or such party’s
Affiliates or Agents without the prior consent of the other parties hereto, except as follows: (a)
the Buyer Parties may make such
disclosure in any documents utilized in connection with its financing for the Transactions,
but only after the recipients of such documents have been informed of the confidential nature of
the Transactions and such recipients have agreed to maintain the confidentiality of the
Transactions; (b) any release or announcement required by applicable Legal Requirements, provided
the party required to make the release or announcement uses commercially reasonable efforts to
allow the other party reasonable time to comment on such release or announcement in advance of such
issuance; and (c) each party may disclose to their investors and advisors the names of the Holding
Company and the Buyer Parties, the date of the Transactions, the price and the key terms under this
Agreement, provided, however, that such investors and advisors understand the
confidential nature of such information and agree to maintain the confidentiality of such
information.

     6.8 Contract Guarantees. Prior to Closing, the parties shall use commercially
reasonable efforts (a) to cause all guarantees, suretyship, performance and other bonds, letters of
credit or similar arrangements securing the performance of any of the Merging Companies or any of
its subcontractors, agents or affiliates and required pursuant to the terms of the Contracts
(“Contract Guarantees”) to continue in full force and effect following the Effective Time or (b) to
cause such Contract Guarantees to be replaced with other guarantees, suretyship, performance and
other bonds, letters of credit or similar arrangements in accordance with the terms of such
Contracts, in either case referred to in clause (a) or (b), without cost or liability to any
Seller.

     6.9 Employee Bonuses. None of the bonuses described on Schedule 6.9 (the
“Senior Executive Bonuses”) were paid before January 1, 2008. All the Senior Executive Bonuses
shall be calculated and paid not later than the day before the Closing Date. Such bonuses shall be
calculated in the same manner as described on Schedule 4.15.

ARTICLE 7

DISCLOSURE SCHEDULE; ABSENCE OF OTHER WARRANTIES

     7.1 General. The information set forth in the Schedules attached hereto refers solely
to the section or paragraph of this Agreement to which such schedule and information is

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responsive
provided, however, that any matter set forth in a Schedule shall be deemed also to be a disclosure
against any other section of Article IV to the extent it is readily apparent on the face of such
Schedule that such matter is applicable to such other section. All capitalized terms used and not
otherwise defined in the Schedules have the same meanings ascribed to such terms in this Agreement.

     7.2 No Additional Warranties or Representations; Due Diligence. The Buyer Parties
acknowledge that none of the Merging Companies nor any other Person have made any representation or
warranty, expressed or implied, as to the accuracy or completeness of any information regarding the
Merging Companies or the Business, which has been communicated, furnished or made available to any
of the Buyer Parties or their respective
Agents, except as expressly set forth in the Transaction Documents. None of the Merging
Companies nor any other Person is or will be subject to any liability to any Buyer Indemnified
Party or any other Person resulting from the distribution to any of the Buyer Parties or their
respective Agents, or any of the Buyer Parties’ or their respective Agents’ use of, any such
information, documents or material made available to any of the Buyer Parties or their respective
Agents in Records stored on computer disks, in online or physical “data rooms,” provided during
management presentations or in any other forms in expectation of the Transactions except as
expressly set forth in the Transaction Documents. The Buyer Parties acknowledge and agree that
none of the Buyer Parties or any of their respective Agents has relied, and none of such Persons is
relying, upon any statement, warranty or representation (whether written or oral) not made in the
Transaction Documents.

ARTICLE 8

POST-CLOSING COVENANTS

     8.1 Records and Personnel. The Seller Representative may, following the Closing,
retain copies of the Merging Companies’ Records, including Records stored on computer disks or
tapes or any other storage medium, as the Seller Representative is reasonably likely to need in
connection with any accounting, auditing and Tax requirements, any Legal Requirements and any
claims or Proceedings relating in whole or in part to the Sellers or any of the Merging Companies.
Except to the extent reasonably necessary in connection with the foregoing, the Seller
Representative shall treat all such records and the information therein as strictly confidential
and shall use reasonable best efforts to prevent the disclosure thereof.

     8.2 Cooperation. The parties hereto will cooperate with each other and will cause
their respective Agents to cooperate with each other following the Closing to ensure the orderly
transition of the ownership of the Holding Company and the Business to the Parent and to minimize
any disruption to the Business that might result from the Transactions. If reasonably requested by
the Seller Representative following the Closing, the Surviving Corporation shall permit access by
the Seller Representative to the books, records and personnel of the Surviving Corporation, at the
sole cost and expense and only to the extent not disruptive of business operations.

     8.3 Publicity. Following the Closing, each party may disclose the general terms of
the Transactions for marketing purposes to the investment community; provided,
however, that

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in no case may such disclosure include the Merger Consideration, except to
the extent required by Legal Requirement.

     8.4 D&O Indemnification. Following the Closing, the Parent will cause the Surviving
Company and the Operating Companies to honor all obligations regarding limitation of liability and
indemnification of current or former directors and officers and the advancement of expenses
incurred, to the extent
such obligations are contained in the Articles of Incorporation, Bylaws or other
organizational documents, as applicable, of the Merging Companies as of the date of this Agreement
and will honor and fulfill to the fullest extent permitted by applicable law such limitation of
liability and indemnification obligations. Subsequent to the Closing, the Parent will cause the
Surviving Company and the Operating Companies to indemnify and advance expenses to current or
former directors, officers and employees of any of the Merging Companies, the Surviving Company,
and trustees or administrators of Benefit Plans, to the same extent as provided in the preceding
sentence.

     8.5 D&O Liability Insurance. The Parent acknowledges that prior to the Closing, the
Holding Company may purchase “tail” directors’ and officers’ liability insurance.

ARTICLE 9

TERMINATION

     9.1 Grounds for Termination. This Agreement may, by notice given prior to or at the
Closing, be terminated as follows:

          (a) by mutual written consent of the Parent and the Holding Company;

          (b) by either the Parent or the Holding Company if the Closing has not occurred (other than as
a result of any party seeking to terminate this Agreement to comply fully with such party’s
obligations under this Agreement) on or before March 31, 2008, or such later date as the parties
may agree upon in writing (the “Outside Date”).

          (c) by either the Holding Company or the Parent by giving written notice to the other party if
any Governmental Body shall have issued an order, decree or ruling or taken any other action
permanently restraining, enjoining or otherwise prohibiting the consummation of the Transactions,
and such order, decree, ruling or other action shall not be subject to appeal or shall have become
final and unappealable;

          (d) by the Holding Company if (i) there shall have been a material breach of any
representation or warranty on the part of the Parent or Merger Sub set forth in this Agreement, or
if any representation or warranty of the Parent or Merger Sub shall have become materially untrue,
in either case such that the conditions set forth in Section 3.3(a) would be incapable of
being satisfied by the Outside Date or (ii) there shall have been a material breach by Parent or
Merger Sub of any of their respective covenants or agreements hereunder such that the conditions
set forth in Section 3.3(b) would be incapable of being satisfied by the Outside Date;

          (e) by the Parent if (i) there shall have been a material breach of any representation or
warranty on the part of the Holding Company set forth in this Agreement, or if any representation
or warranty of the Holding Company shall have become materially untrue, in

34

 

either case such that
the conditions set forth in Section 3.2(b) would be incapable of being satisfied by the
Outside Date or (ii) there shall have been a material breach by the Holding
Company of its covenants or agreements hereunder such that the conditions set forth in
Section 3.2(c) would be incapable of being satisfied by the Outside Date; or

          (f) by the Parent if the Shareholders Meeting shall have been duly held and the vote cast at
the Shareholders Meeting (including any adjournment thereof) shall be insufficient to constitute
the Shareholder Approval.

     9.2 Effect of Termination. Any termination of this Agreement by a party under this
Article 9 will be without liability to the other parties, other than any liability of any
party may have arising out of a breach of this Agreement prior to such termination.

ARTICLE 10

INDEMNIFICATION

     10.1 Indemnification by the Merging Companies or the Sellers.

          (a) Subject to the limitations, conditions and restrictions set forth in this Agreement, if
the Closing has not occurred, the Merging Companies and their respective successors and assigns
will jointly and severally indemnify and defend the Buyer Indemnified Parties and hold them
harmless from and against any and all Losses of or against the Buyer Indemnified Parties to the
extent resulting from or arising out of (i) any breach as of the date hereof of any representation
or warranty made by the Merging Companies in the Transaction Documents; (ii) any breach or
non-fulfillment of any agreement or covenant of the Merging Companies contained in this Agreement
which are to be performed prior to Closing, (iii) any Pre-Closing Tax Liability, and any and all
Taxes of any Person other than a Merging Company or any Subsidiary thereof imposed on any Merging
Company or any Subsidiary thereof as a transferee or successor, by contract or pursuant to any law,
rule, or regulation, which Taxes relate to an event or transaction occurring on or before the later
of the Effective Date and the Closing Date (determined as provided in the definition of
“Pre-Closing Tax Liability”), but in each case covered by this clause (iii) only to the extent such
Pre-Closing Tax Liability exceeds the accrual for unpaid Taxes reflected on the final Closing
Statement.

          (b) Subject to the limitations, conditions and restrictions set forth in this Agreement, if
the Closing has occurred, each Seller and its successors and assigns will indemnify and defend the
Buyer Indemnified Parties and hold them harmless from and against any and all Losses of or against
the Buyer Indemnified Parties after the Closing to the extent resulting from or arising out of (i)
any inaccuracy or breach of any representation or warranty made by the Merging Companies in Article
4 of this Agreement or in any of the other Transaction Documents as of the date hereof or as of the
Closing Date; provided, however, that if any such representation or warranty is qualified in any
respect by knowledge (other than the knowledge qualifiers contained in Sections 4.12, 4.13(c),
4.15(b), 4.19(d) and 4.23 and the last sentence of Section 4.13(b), which shall be unaffected
by this provision), materiality or Material Adverse Effect, for purposes of this clause (i) such
knowledge, materiality or Material Adverse Effect qualification will in all respects be ignored,
(ii) any breach or non-fulfillment of any agreement or covenant of the Merging Companies contained
in this Agreement, (iii) any Pre-Closing Tax Liability to the

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extent such Pre-Closing Tax Liability exceeds the accrual for unpaid Taxes as computed under
Schedule 2.1, item 4, any Deal Bonus Tax Asset Shortfall, any Amortization Damage and,
notwithstanding any disclosure under Section 4.15, any liability or cost associated with,
including any loss of deduction resulting from any payment being an “excess parachute payment” for
purposes of Section 280G and 4999 of the Code and any and all Taxes of any Person other than a
Merging Company or any Subsidiary thereof imposed on any Merging Company or any Subsidiary thereof
as a transferee or successor, by contract or pursuant to any law, rule, or regulation, which Taxes
relate to an event or transaction occurring on or before the later of the Effective Date and the
Closing Date (determined as provided in the definition of “Pre-Closing Tax Liability”). For
avoidance of doubt, the knowledge qualifications contained in the representations and warranties
referred to above shall remain in full force and effect in accordance with the terms hereof for
purposes of this Article 10.

     10.2 Indemnification by the Buyer Parties and the Surviving Company.

          (a) Subject to the limitations, conditions and restrictions set forth in this Agreement, if
the Closing has not occurred, the Parent and Merger Sub and their successors and assigns will
jointly and severally indemnify and defend the Merging Companies and their respective successors
and assigns and hold each of them harmless from and against any and all Losses of or against the
Merging Companies and their respective Affiliates, to the extent resulting from or arising out of
(i) any breach as of the date hereof of any representation or warranty made by any of the Buyer
Parties in the Transaction Documents and (ii) any breach or non-fulfillment of any agreement or
covenant of any of the Buyer Parties contained in the Transaction Documents which are to be
performed prior to Closing.

          (b) Subject to the limitations, conditions and restrictions set forth in this Agreement, if
the Closing has occurred, the Parent, the Surviving Company, and their respective successors and
assigns will jointly and severally indemnify and defend the Sellers and their respective successors
and assigns and hold each of them harmless from and against any and all Losses of or against any of
the Sellers and their respective Affiliates, to the extent resulting from or arising out of (i) any
breach as of the date hereof or as of the Closing Date of any representation or warranty made by
any of the Buyer Parties in the Transaction Documents and or (ii) any breach or non-fulfillment of
any agreement or covenant of any of the Buyer Parties contained in the Transaction Documents.

          (c) Subject to the limitations, conditions and restrictions set forth in this Agreement, if
the Closing has occurred, the Parent, the Surviving Company, and their respective successors and
assigns will pay over to the Sellers, their Affiliates and their respective successors and assigns
any refund of any Pre-Closing Tax Liability received upon final resolution or settlement of any Tax
issue, item, audit, actual or proposed adjustment, litigation, or assessment relating to any Tax
Period or portion of a Tax Period that occurred prior to Closing; provided however, that any refund
of a Pre-Closing Tax Liability attributable to the carry back of a loss attributable to a Tax
Period ending after December 31, 2007 shall be retained by the Buyer.

     10.3 Procedure Relative to Indemnification.

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          (a) In the event that any party hereto claims that it is entitled to be indemnified, defended
or held harmless pursuant to the terms of this Article 10 (each, a “Claim”), such party
(the “Claiming Party”) will promptly notify the party or parties against which the claim is made
(the “Indemnifying Party”) in writing (a “Claim Notice”) of such Claim promptly after the Claiming
Party receives notice of any action, Proceeding, demand or assessment or otherwise has received
notice of any claim of a third party (a “Third-Party Claim”) that may reasonably be expected to
result in a Claim by the Claiming Party against the Indemnifying Party. The Claim Notice will
specify the breach of representation, warranty, agreement or covenant claimed by the Claiming Party
and the Losses incurred by, or imposed upon, the Claiming Party on account thereof. If such Losses
are liquidated in amount, the Claim Notice will so state, and such amount is deemed the amount of
the Claim of the Claiming Party. If the amount is not liquidated, the Claim Notice will so state,
and in such event a Claim is deemed asserted against the Indemnifying Party on behalf of the
Claiming Party, but no payment will be made on account thereof until the amount of such claim is
liquidated and the Claim is finally determined.

          (b) The following provisions apply to Claims of the Claiming Party which are based upon a
Third-Party Claim (including any form of Proceeding filed or instituted by any Governmental Body):

     (i) Subject to the other provisions of this Section 10.3(b), the
Indemnifying Party has the right, upon receipt of the Claim Notice and at its
expense, after acknowledging its responsibility to provide indemnity and defense, to
defend such Third-Party Claim in its own name or, if necessary, in the name of the
Claiming Party. If the Indemnifying Party wishes to exercise its right to defend a
Third-Party Claim, it must first give written notice to that effect to the Claiming
Party within 15 days after the Claiming Party gives notice of the Third-Party Claim.
The Claiming Party will cooperate with and make available to the Indemnifying Party
such assistance and materials as may be reasonably requested of the Claiming Party,
and the Claiming Party has the right, at the Claiming Party’s expense, to
participate in the defense. The Indemnifying Party has the right to settle and
compromise such Third-Party Claim only with the consent of the Claiming Party (which
consent may not be unreasonably withheld or delayed) unless there is no finding or
admission of any violation of Legal Requirements or any violation of the rights of
any Person and no effect on any other Claims that may be made against the Claiming
Party, and the sole relief provided is monetary damages that are paid in full by the
Indemnifying Party (subject to the Basket Amount).

     (ii) Regardless of whether the Indemnifying Party elects to defend the
Third-Party Claim, the Indemnifying Party has the right within thirty (30) days from
receipt of the Claim Notice to notify the Claiming Party that the Indemnifying Party
disputes the merits of the Third-Party Claim or that the Third-Party Claim is the
subject of indemnification hereunder. Following any such notice of dispute, the
Indemnifying Party no longer shall have the right to defend the Third-Party Claim
under Section 10.3(b)(i).

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     (iii) In the event that the Indemnifying Party notifies the Claiming Party that
the Indemnifying Party does not wish to defend the Third-Party Claim, or fails to
notify the Claiming Party of its election to defend the Third-Party Claim within the
15-day period referred to in Section 10.3(b)(i), then the Claiming Party has
the right to conduct a defense against such Third-Party Claim and will have the
right to settle and compromise such Third-Party Claim, and the Indemnifying Party
will have none of the rights designated in Section 10.3(b)(i).

          (c) Upon receipt of a Claim Notice that does not involve a Third-Party Claim, the Indemnifying
Party has thirty (30) days from the receipt of such Claim Notice to notify the Claiming Party that
the Indemnifying Party disputes such Claim. If the Indemnifying Party does not timely notify the
Claiming Party of such dispute, then the amount of such Claim is deemed, conclusively, a liability
of the Indemnifying Party hereunder. If the Indemnifying Party does timely notify the Claiming
Party of such dispute, then the Claiming Party has thirty (30) days to respond in a written
statement to the objection of the Indemnifying Party. If after such thirty (30)-day period there
remains a dispute as to any such Claim, then the Claiming Party and the Indemnifying Party will
attempt in good faith for a period not to exceed thirty (30) additional days to agree upon the
rights of the respective parties with respect to such Claim. If the parties should so agree, a
memorandum setting forth such agreement will be prepared and signed by the Parent and the Seller
Representative. If the parties do not agree within such additional thirty (30)-day period, then
the Claiming Party may pursue any and all other remedies available to it hereunder.

          (d) Once the amount of any Claim under this Article 10 is liquidated and the Claim is
finally determined, the Claiming Party is entitled to pursue each and every remedy available to it
at law or in equity to enforce the indemnification provisions of this Article 10 and, in
the event it is determined, or the Indemnifying Party agrees, that it is obligated to indemnify the
Claiming Party for such Claim, the Indemnifying Party agrees to pay all costs, expenses and fees,
including all reasonable attorneys’ fees which may be incurred by the Claiming Party in attempting
to enforce indemnification under this Article 10, whether the same is enforced by suit or
otherwise which the Indemnifying Party and the Claiming Party agree are due to the Claiming Party
or which a court, arbitrator or other judicial body determines are due to the Claiming Party. In
the event it is determined, or the Claiming Party agrees, that the Indemnifying Party is not
obligated to indemnify the Claiming Party for such Claim, the Claiming Party will pay all costs,
expenses and fees, including reasonable attorneys’ fees, which may have been incurred by the
Indemnifying Party in defending or disputing the Claim by the Claiming Party under this Article
10.

          (e) In the event that any Buyer Indemnified Party receives any oral or written communication
regarding any pending or threatened examination, claim, adjustment or other Proceeding with respect
to the liability of the Surviving Company and the Operating Companies for Taxes for which the
Sellers are or may be liable under this Agreement by reason of the indemnity provided in
Section 10.1(b)(iii) or a breach of any representation or warranty set forth in Section
4.15 (a “Tax Claim”), such Buyer Indemnified Party will, within 30 days, notify the Seller
Representative in writing thereof, and the Sellers, through the Seller Representative, are
entitled, at their sole expense, to control or settle the contest of, any examination, claim,
adjustment or Proceeding to the extent that such examination, claim, adjustment or Proceeding

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could give rise to such liability; provided, however, that the Sellers may not
take or advocate any position that could reasonably be expected to have an adverse effect on the
Surviving Company or any of its Affiliates without the prior written consent of the Surviving
Company. The Sellers through the Seller Representative will keep the Surviving Company fully and
timely informed with respect to the commencement, status and nature of any such Tax Proceeding.
The Surviving Company will cooperate fully with the Seller Representative in handling any such Tax
Claim. The Surviving Company will provide, or cause to be provided to the Seller Representative or
its designee, all necessary authorizations, including powers of attorney, to control any such Tax
Proceeding which the Sellers are entitled to control pursuant to this Section 10.3(e). If
any such Tax Proceeding relating to a Tax Claim results in the payment of any Taxes for which the
Sellers are liable hereunder, and the Surviving Company or any of its respective Affiliates
receives a corresponding Tax benefit relating to the circumstances which give rise to the Tax Claim
in the Tax Period of payment or in the subsequent two Tax Periods, then the Surviving Company or
its respective Affiliate shall pay to the Sellers (i) the actual reduction in Taxes due and payable
in such Tax Period below the amount of Taxes that would have been due and payable but for the
circumstances which give rise to such Tax payment by Sellers, or (ii) any refund of Taxes already
paid attributable to such Tax payment by Sellers, provided however, that any Tax benefit taken into
account for purposes of this sentence shall not also be taken into account or refunded pursuant to
Section 10.2(c).

          (f) For purposes of this Section 10.3 and subject to Article 12, the Seller
Representative will act on behalf of the Sellers.

          (g) No failure or delay on the part of any Buyer Indemnified Party in providing any notice
required hereunder shall limit or affect such Buyer Indemnified Party’s right to be indemnified
hereunder except only to the extent that the Sellers are actually prejudiced thereby.

     10.4 Limits on Indemnification.

          (a) Notwithstanding anything contained in the Transaction Documents to the contrary, neither
the Sellers nor the Merging Companies shall be obligated to indemnify, defend or hold harmless any
Buyer Indemnified Party with respect to any Losses from any Claim asserted pursuant to Section
10.1(b)(i) other than Specified Claims except to the extent that the aggregate Losses from all
Claims exceed an amount equal to $2,470,000 (the “Basket Amount”), which amount is to serve as a
“deductible” or “non-tipping basket.”

          (b) Notwithstanding anything contained in the Transaction Documents to the contrary:

     (i) in no event may the Sellers’ and the Merging Companies’ aggregate liability
for Losses pursuant to Section 10.1(b)(i) or otherwise other than Specified
Claims exceed, in the aggregate, the Escrow Account balance as determined and
reduced pursuant to Section 2.3; provided, however, that
such aggregate limit of liability shall not be less than the Escrow Account balance
immediately after First Escrow Release Date; and

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     (ii) any and all Losses recoverable by any Buyer Indemnified Party pursuant to
this Article 10 or otherwise shall first be paid from the funds in the
Escrow Account.

          (c) In the event the Closing does not occur and any Buyer Indemnified Party asserts a Claim
pursuant to Article 10, the Losses such Buyer Indemnified Person may recover from the
Merging Companies are limited to the costs and expenses (including reasonable attorneys’ and
accountants’ fees) actually incurred by such Buyer Indemnified Person in connection with this
Transaction.

          (d) Each of the representations and warranties of the Merging Companies and the Buyer Parties
contained in the Transaction Documents, and each of the agreements and covenants to be performed by
the Merging Companies and the Buyer Parties prior to the Closing, survive for a period equal to
four hundred fifty (450) days following the Closing Date; provided, however, all
claims for indemnity under Section 10.1(b)(iii) and all claims for indemnity based on any
of the representations, warranties, agreements and covenants of the Merging Companies and the
Sellers set forth in Sections 4.1 (Authority; Authorization; Enforceability), 4.7
(Capitalization), 4.15 (Taxes), and 4.24 (Brokers; Agents) and Article 11 (Tax Matters) (the
“Specified Claims”) shall survive the Closing until 30 days after the expiration of the longest
applicable statute of limitations. All of the agreements and covenants of the Merging Companies
and the Buyer Parties contained in the Transaction Documents to be performed after the Closing
shall survive after the Closing Date in accordance with their terms. Any Claim based upon a breach
of a representation, warranty, agreement or covenant which is made in writing prior to the
expiration of the applicable survival period survives such expiration until resolved or judicially
determined.

          (e) With respect to each Claim, the Claiming Party (or in the case of a Claim by any Buyer
Indemnified Party after Closing or the Surviving Company) will upon written request by the
Indemnifying Party use reasonable efforts to assert all claims that are applicable to such claim
under all insurance policies, and any Losses that may be recovered by the Claiming Party with
respect to such Claim will be net of any insurance proceeds actually received with respect thereto.
The parties will reasonably cooperate with a view to optimizing the availability of insurance
coverages. To the extent that insurance proceeds are collected after a Claim has been settled, the
Claiming Party will restore the Indemnifying Party to the same economic position as would have
existed had such insurance proceeds been collected prior to the settlement of such Claim. Nothing
in this Section 10.4(e) shall require the commencement of any litigation or other dispute
resolution procedures.

          (f) If any of the Losses for which an Indemnifying Party is responsible or allegedly
responsible under this Article 10 are recoverable or reasonably likely to be recoverable
against any third party at the time that payment is due hereunder, the Claiming Party will assign
any and all rights that it may have to recover such Losses to the Indemnifying Party or, if such
rights are not assignable for any reason, the Claiming Party will attempt in good faith but at the
Indemnifying Party’s sole cost and expense to collect any and all such Losses on account thereof
from such third party for the benefit of the Indemnifying Party. The Claiming Party will reimburse
the Indemnifying Party for any and all Losses paid by the Indemnifying Party to the Claiming Party
pursuant to this Agreement to the extent such amount is subsequently paid to the

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Claiming Party by any Person other than the Indemnifying Party. Nothing in this
Section 10.4(f) shall require the commencement of any litigation or other dispute
resolution procedure.

          (g) Notwithstanding anything contained in the Transaction Documents to the contrary, (i) to
the extent (but only to the extent) that any Loss resulting from any breach of any representation,
warranty, covenant or agreement of the Merging Companies under Article 4 is taken into
account as a current liability, reserved or accrued, in determining the final Closing Statement, or
otherwise taken into account in the calculation of the Final Merger Consideration, (A) no Buyer
Indemnified Party may recover the amount of such Loss that is so reserved or accrued through a
Claim pursuant to Article 10 or otherwise and (B) the amount of such Loss that is so
reserved or accrued is not included in the determination of whether all Losses, in the aggregate,
exceed the Basket Amount and (ii) no Buyer Indemnified Party may recover duplicative Losses in
respect of a single set of facts or circumstances under more than one representation or warranty in
the Transaction Documents regardless of whether such facts or circumstances would give rise to a
breach of more than one representation or warranty in this Agreement.

          (h) Notwithstanding anything contained in the Transaction Documents to the contrary, the
Losses for which indemnity is available shall not include consequential, incidental, indirect,
special, exemplary or punitive damages (except that any such damages awarded to a third party and
covered by a Third Party Claim shall be recoverable as Losses and shall not be subject to this
Section 10.4(h)), including loss of future revenue, income or profits, diminution of value
or loss of business reputation or opportunity; provided, however, that claims based on diminution
of value will be recoverable to the extent such claim (i) is made in respect of a breach of a
representation that adversely affects the earnings of the Merging Companies, (ii) in respect of an
issue which is recurring (as opposed to non-recurring) in nature, and (iii) is not otherwise
actually able to be mitigated via surcharges to customers of the Business with no other adverse
effect to the Business. For purposes of this Section 10.4(h), Amortization Damages (as
defined in Article 13) shall be deemed not to include any consequential, incidental,
indirect, special, exemplary or punitive damages.

          (i) The Claiming Party shall take and cause its Affiliates to take commercially reasonable
steps to mitigate any Losses upon becoming aware of any event which gives rise to such Claim;
provided, however, that an Indemnifying Party’s obligation under this Agreement shall survive even
if the Claiming Party or its Affiliates do not take commercially reasonable steps to mitigate any
Losses, so long as such failure does not materially prejudice such Indemnifying Party, in which
case such Indemnifying Party’s obligations shall be adjusted solely to the extent of such
prejudice.

     10.5 Sole Remedy. Following the Closing, the sole remedy of any Claiming Party for
any and all claims with respect to a breach of representations or warranties contained in the
Transaction Documents and the Transactions (except in the case of fraud or deliberate and knowing
breach of a representation or warranty) is as set forth in this Article 10, and no Person
has any other entitlement, remedy or recourse, whether in contract, tort or otherwise, against the
other parties
with respect to the Transactions, all of such remedies, entitlements and recourse being
expressly waived by the parties hereto to the fullest extent permitted by Legal Requirements.

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ARTICLE 11

TAX MATTERS

     11.1 Tax Returns. The Parent will cause the Surviving Company to timely file all
Pre-Closing Income Tax Returns of the Surviving Company due on or after the Closing Date. Except
to the extent that it would constitute a violation of law, such Returns will be prepared and filed
on a basis consistent with the existing procedures for preparing such Returns and in a manner
consistent with prior practices, elections and accounting methods for the treatment of specific
items on a Tax Return. At least thirty (30) days prior to the due date of any Pre-Closing Income
Tax Return (after taking into account any applicable extensions), the Parent will, or will cause
the Surviving Company to, deliver to the Seller Representative a copy of a Pre-Closing Income Tax
Return (and any related work papers) for the Seller Representative’s review and comment. The
Seller Representative will deliver a copy of such Pre-Closing Income Tax Return to the Parent with
any of its comments at least ten (10) days prior to the due date (after taking into account any
applicable extensions) of such Pre-Closing Income Tax Return, and the Parent will cause the
Surviving Company to incorporate all reasonable comments that could not be reasonably expected to
have an adverse effect on the Surviving Company prior to timely filing such Return with the
appropriate Tax Authority. Upon request of Parent, the Seller Representative shall cause the
Sellers to pay, when due and payable, all Pre-Closing Tax Liabilities to the extent such
Pre-Closing Tax Liabilities exceed the accrual for unpaid Taxes, calculated as provided in
Schedule 2.1. The Parent and the Surviving Company may not amend, modify or otherwise
change any Return that relates to any period ending on or before the Closing Date or take any
action to extend the applicable statute of limitations with respect to any Pre-Closing Income Tax
Return, in each case, without the prior written permission of the Seller Representative (which
shall not be unreasonably withheld) or unless such amendment, modification or change is legally
required.

     11.2 Certain Taxes. All transfer, documentary, sales, use, stamp, registration and
similar Taxes and fees (including any penalties and interest) attributable to the Merger and the
other Transactions pursuant to the Transaction Documents will be paid by the Surviving Company when
due, and the Surviving Company will, at its own expense, file all necessary 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 Legal Requirements, the Sellers will join in
the execution of any such Returns and other documentation.

     11.3 Tax Treatment of Certain Payments. For all relevant Tax purposes, all Losses
payable pursuant to Article 10 are treated as adjustments to the Merger Consideration. The
Sellers and the Parent agree to treat the Indemnity Escrow Amount as assets of the Parent and the
Sellers will pay all Taxes on any interest or other
income earned with respect to the Indemnity Escrow Amount until such funds are distributed in
accordance with the Escrow Agreement.

ARTICLE 12

SELLER REPRESENTATIVE

     12.1 Appointment of the Seller Representative. By approval and adoption of this
Agreement, each Seller hereby irrevocably appoints David Pelisek, David Lubar and Scott Ransom, and
their duly appointed successors, as its, his or her true and lawful attorney in fact

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and agent (the
“Seller Representative”), with full power of substitution or resubstitution, to act on behalf of
such Seller in any disputes involving the Transaction Documents (other than any disputes involving
Claims for which such Seller is solely liable), to do or refrain from doing all such further acts
and things, and to execute all such documents as the Seller Representative deems necessary or
appropriate in connection with the Transactions, including the power:

     (i) to act for such Seller with regard to Claims (other than Claims for which
such Seller is solely liable), including the power to compromise any Claim on behalf
of such Seller and to transact matters of litigation, and to act for such Seller
under the Escrow Agreement;

     (ii) to execute and deliver all amendments, waivers, ancillary agreements,
certificates and documents that the Seller Representative deems necessary or
appropriate in connection with the consummation of the Transactions;

     (iii) to receive funds, make payments of funds, and give receipts for funds;

     (iv) to retain and pay funds pursuant to Section 12.4;

     (v) to receive funds for the payment of expenses of such Seller and apply such
funds in payment for such expenses; and

     (vi) to do or refrain from doing any further act or deed on behalf of such
Seller that the Seller Representative deems necessary or appropriate in its sole
discretion relating to the subject matter of this Agreement as fully and completely
as such Seller could do if personally present.

     12.2 Other Powers and Duties of the Seller Representative. The Seller Representative
will act as a committee, and all decisions of the Seller Representative will be made by the
majority consent at a meeting (in person or telephonic) or the unanimous written consent of the
members (which may be evidenced by e-mail correspondence). Each member of the Seller
Representative is free to resign and is entitled to appoint his or her successor. The appointment
of the Seller Representative is deemed coupled with an interest and is irrevocable, and the parties
hereto and any other Person may conclusively and absolutely rely,
without inquiry, upon any action of the Seller Representative in all matters referred to
herein. Any action taken by the Seller Representative will be in writing and will be signed by any
member of the Seller Representative. All notices required to be made or delivered by any Buyer
Party or the Surviving Company to the Sellers pursuant to Section 12.1 or 12.2 or otherwise
will be made to the Seller Representative, which will discharge in full all other notice
requirements of the Buyer Parties to the Sellers with respect thereto. The Sellers hereby confirm
and ratify all that the Seller Representative does or causes to be done by virtue of its
appointment as the representative of the Sellers hereunder. The Seller Representative will act for
the Sellers on all of the matters set forth in this Agreement in the manner the Seller
Representative believes to be in the best interest of the Sellers, and consistent with the
obligations of the Sellers under this Agreement, but the Seller Representative is not responsible
to the Sellers for any loss or damages which the

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Sellers may suffer by the performance of the
Seller Representative’s duties under this Agreement, other than actual out-of-pocket loss or
damages arising from willful violation of any Legal Requirement bad faith or fraud in the
performance of such duties under this Agreement and in no event do any such losses or damages
include consequential, incidental, indirect, special, exemplary or punitive losses or damages of
any kind whatsoever. The Seller Representative does not have any duties or responsibilities except
those expressly set forth in this Agreement, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities are read into this Agreement or otherwise exist against the
Seller Representative.

     12.3 Reliance by the Seller Representative. The Seller Representative is entitled to
rely, and is fully protected in relying, upon any statements furnished to it by any party hereto or
any other evidence reasonably deemed by the Seller Representative to be reliable, and the Seller
Representative is entitled to act on the advice of counsel selected by it. The Seller
Representative is fully justified in failing or refusing to take any action under this Agreement
unless it has received such advice or concurrence of the Sellers as it deems appropriate or it has
been expressly indemnified to its satisfaction by the Sellers (severally but not jointly) against
any and all liability and expense that the Seller Representative may incur by reason of taking or
continuing to take any such action. The Seller Representative is in all cases fully protected in
acting, or refraining from acting, under this Agreement in accordance with a request of the Sellers
whose Escrow Account balances, in the aggregate, at the time of such request exceed fifty percent
(50%) of the Escrow Account balances of all Sellers at the time of such request, and such request,
and any action taken or failure to act pursuant thereto, is binding upon all the Sellers to the
extent otherwise permitted hereunder.

     12.4 Expenses of the Seller Representative. The Seller Representative is entitled to
retain counsel and to incur such expenses (including court costs and reasonable attorneys’ fees and
expenses) as the Seller Representative deems to be necessary or appropriate in connection with its
performance of its obligations under this Agreement. Each Seller will bear a percentage of all
reasonable fees and expenses incurred by the Seller Representative in performing its duties
hereunder or under the Escrow Agreement, which percentage is equal to such Seller’s pro rata share
of the Reserve Amount. Such expenses may be paid from the Reserve Amount.

     12.5 Indemnification. Each Seller hereby agrees (severally but not jointly) to indemnify the Seller
Representative (in its capacity as such) against, and to hold the Seller Representative (in its
capacity as such) harmless from, its proportionate share (based on the aggregate Per Share Merger
Consideration payable with respect to all of the Merger Shares held of record by such Seller as a
percentage of the Merger Consideration) of any and all Losses of whatever kind which may at any
time be imposed upon, incurred by or asserted against the Seller Representative in such capacity in
any way relating to or arising out of the Seller Representative’s action or failure to take action
pursuant to this Agreement or the Escrow Agreement or in connection herewith or therewith in such
capacity; provided, however, that no Seller is liable for the payment of any
portion of such Losses to the extent resulting from the bad faith or fraud of the Seller
Representative or any willful violation by the Seller Representative of its obligations under this
Agreement. Each Seller hereby authorizes the Seller Representative to apply proceeds otherwise
distributable to the Sellers pursuant to this Agreement or the Escrow Agreement to satisfy any of
such Seller’s obligations under this Section 12.5.

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     12.6 Survival. The agreements in this Article 12 survive termination of this
Agreement.

ARTICLE 13

DEFINITIONS

     “Adjustment Amount” means $8,645,000.

     “Affiliate” means with reference to any Person, another Person controlled by, under the
control of or under common control with, that Person.

     “Agent” means with respect to a particular Person, any director, manager, officer, employee,
agent, consultant, advisor or other representative of such Person, including legal counsel,
accountants and financial advisors.

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

     “Amortization Damage” means the present value of the disallowance of any current or future
amortization deductions with respect to the intangible assets reflected in the books and records of
the Merging Companies and arising, directly or indirectly, from the acquisition of MEA in 2004.
Such present value calculation shall be made using the prime rate as published in the Wall Street
Journal, Eastern Edition, in effect on the date of the final determination of such disallowance.

     “Appraisal Rights Amount” means (a) if there are no Dissenting Shareholders as of the Closing
Date, zero, and (b) otherwise, an amount equal to the Per Share Merger Consideration for each
Dissenters’ Share held by the Dissenting Shareholders, plus an amount equal to the greater of (x)
10% of such aggregate Per Share Merger Consideration of the Dissenters’ Shares and (y) $200,000.

     “Arbitrator” has the meaning set forth in Section 2.1(d).

     “Articles of Merger” has the meaning set forth in Section 1.2.

     “Basket Amount” has the meaning set forth in Section 10.4(a).

     “Benefit Plans” has the meaning set forth in Section 4.19(a).

     “Business” means the business of the Merging Companies as currently conducted.

     “Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day in which
commercial banks in New York, New York are authorized or required by Legal Requirement to be closed
for the conduct of regular banking business.

     “Buyer Indemnified Parties” means: (i) if the Closing has not occurred, then Buyer Parties and
their Affiliates; and (ii) if the Closing has occurred, then Buyer Parties and their Affiliates
including the Surviving Company and its subsidiaries.

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     “Buyer Parties” has the meaning set forth in Section 3.3(a).

     “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended.

     “Certificate” has the meaning set forth in Section 2.2(b).

     “Claim” has the meaning set forth in Section 10.3(a).

     “Claim Notice” has the meaning set forth in Section 10.3(a).

     “Claiming Party” has the meaning set forth in Section 10.3(a).

     “Closing” means the closing of the Merger and the other Transactions.

     “Closing Balance Sheet” has the meaning set forth in Section 2.1(b).

     “Closing Date” means the date on which the Closing occurs.

     “Closing Date Indebtedness” means the aggregate amount as of the close of business on the day
immediately preceding the Closing Date of all Indebtedness of the Holding Company and the other
Merging Companies, as finally determined pursuant to Section 2.1.

     “Closing Statement” has the meaning set forth in Section 2.1(b).

     “Code” means the Internal Revenue Code of 1986, as amended, or any successor law.

     “Common Shares” means, collectively, the Voting Common Shares and the Non-Voting Common
Shares.

     “Company Option” means an option to purchase Common Shares issued pursuant to the Holding
Company’s 2004 Management Equity Compensation Plan or the Holding Company’s 2004 Directors Equity
Compensation Plan.

     “Contract” means any agreement, contract, obligation, promise or undertaking that is legally
binding.

     “Contribution Agreements” has the meaning set forth in Section 3.2(k)(ix).

     “Contribution Amount” means the amount of the Per Share Merger Consideration paid to certain
Sellers pursuant to the terms and conditions of the Contribution Agreements.

     “Contract Guarantees” has the meaning set forth in Section 6.8.

     “Deal Bonus Tax Asset” means the tax asset permitted to be included on the Closing Balance
Sheet pursuant to Schedule 2.1, item 1.

     “Deal Bonus Tax Asset Shortfall” means the amount, if any, equal to the product of (x) any
portion of the deduction that MEA claims for the Tax Period ending December 31, 2008 in

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respect of
the payments set forth on Schedule 4.15 that is disallowed for tax purposes for whatever
reason (other than a unilateral action of the Surviving Company), multiplied by (y) the tax rate
with respect to which the Deal Bonus Tax Asset was computed pursuant to Schedule 2.1.

     “Dissenting Shareholder” has the meaning set forth in Section 1.5.

     “Dissenters’ Shares” means the Shares with respect to which notice of intent to demand payment
has been given in accordance with Section 180.1321 of the WBCL.

     “DOJ” means the Antitrust Division of the United States Department of Justice.

     “Effective Time” has the meaning set forth in Section 1.2.

     “Employment Agreements” has the meaning set forth in Section 3.2(k)(vii).

     “Environmental, Health and Safety Laws” means all existing and applicable Legal Requirements
of federal, state and local Governmental Bodies concerning pollution or protection of the
environment, public health and safety or employee health and safety, including Legal Requirements
relating to emissions, discharges, releases or threatened releases of Materials of Environmental
Concern into ambient air, surface water, ground water or lands or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of
Materials of Environmental Concern, as such requirements are enacted and in effect on the Closing
Date.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, or any
successor law, and the rules and regulations promulgated thereunder.

     “ERISA Plan” has the meaning set forth in Section 4.19(a).

     “Escrow Account” means the escrow account established pursuant to the Escrow Agreement.

     “Escrow Agreement” means the Escrow Agreement among the Seller Representative, the Parent and
Mellon Investor Services LLC, as escrow agent (the “Escrow Agent”).

     “Estimated Balance Sheet” means the estimated unaudited consolidated balance sheet of the
Holding Company, as of the close of business on the day prior to the Closing Date, certified by the
Chief Financial Officer of the Holding Company to have been prepared in accordance with the
methodologies set forth in Section 2.1(b).

     “Estimated Closing Date Indebtedness” means the Holding Company’s estimate of the Closing Date
Indebtedness as set forth in the Estimated Closing Statement.

     “Estimated Closing Statement” means a statement prepared by the Holding Company and certified
by the Chief Financial Officer of the Holding Company to have been prepared in accordance with this
Agreement, setting forth in reasonable detail (i) the Working Capital that would be calculated
under Section 2.1 if the Estimated Balance Sheet were deemed to be the Closing Balance
Sheet (assuming no disputes with respect thereto), (ii) a calculation of the

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Estimated Working
Capital Adjustment, (iii) a calculation of the Estimated Closing Date Indebtedness, and (iv) a
calculation of the Estimated Total Cash Equity Price.

     “Estimated Total Cash Equity Price” means the Total Cash Equity Price that would be payable if
the Estimated Working Capital Adjustment was deemed to be the Working Capital Adjustment and the
Estimated Closing Date Indebtedness was deemed to be the Closing Date Indebtedness (and as a
result, there was no Shortfall Reduction or Excess Payment) and assuming no amounts will be
released from the Escrow Account or the Reserve Account for the benefit of the Sellers as provided
in this Agreement.

     “Estimated Working Capital Adjustment” means the Holding Company’s estimate of the Working
Capital Adjustment as derived from the Estimated Closing Statement and the calculation of Working
Capital therein.

     “Excess Payment” has the meaning set forth in Section 2.1(a).

     “Exchange Agent” has the meaning set forth in Section 2.2(a).

     “Exchange Fund” has the meaning set forth in Section 2.2(a).

     “Excluded Liabilities” has the meaning set forth in Section 3.2(k)(v).

     “Final Settlement Date” has the meaning set forth in Section 2.1(c).

     “Financial Statements” has the meaning set forth in Section 4.14(a).

     “First Escrow Release Date” has the meaning set forth in Section 2.3(a).

     “FTC” means the United States Federal Trade Commission.

     “Fully Diluted Share Amount” means (a) the number of Merger Shares (including all shares of
Restricted Stock outstanding immediately before the Effective Time and including all
the Contributed Shares), plus (b) the number of Common Shares issuable under the Company
Options that are outstanding and unexercised immediately before the Effective Time.

     “GAAP” means generally accepted United States accounting principles and practices recognized
as such by the American Institute of Certified Public Accountants acting through its Accounting
Principles Board or by the Financial Accounting Standards Board or through other appropriate boards
or committees thereof and which are consistently applied for all periods so as to properly reflect
the financial position, the result of operations and operating cash flow on a consolidated basis of
the party, except that any accounting principle or practice required to be changed by the
Accounting Principles Board or Financial Accounting Standards Board (or other board or committee)
in order to continue as generally accepted accounting principles or practice may be so changed.
Notwithstanding anything contained herein to the contrary, the parties hereto hereby acknowledge
and agree that CB Medical South, LLC and CB Medical North, LLC are not consolidated with the
Holding Company in the Financial Statements in accordance with GAAP and that any accounting
principle or practice that would require such a consolidation shall be disregarded for purposes of
this Agreement (including, without limitation, with respect to the

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Working Capital Amount, the
Financial Statements and the definition of “Indebtedness”) and no Claim shall be permitted for
Losses arising from or in connection with such change or consolidation.

     “Governmental Authorization” means any approval, consent, license, permit, waiver or other
authorization issued, granted, given or otherwise made available by or under the authority of any
Governmental Body or pursuant to any Legal Requirement.

     “Governmental Body” means any (i) nation, state, county, city, town, village, district or
other jurisdiction of any nature, (ii) federal, state, local, municipal, foreign or other
government, (iii) governmental or quasi-governmental authority of any nature (including any
governmental agency, branch, department, official or entity and any court or other tribunal) or
(iv) body exercising, or entitled to exercise, any administrative, executive, judicial,
legislative, police, regulatory, or taxing authority or power of any nature.

     “Holding Company” has the meaning set forth in the Preamble to this Agreement.

     “Holding Company Preferred Stock Certificates” has the meaning set forth in
Section 2.2(c).

     “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the rules and
regulations promulgated thereunder, each as amended, or any successor law or regulation.

     “Indebtedness” means, with respect to any Person, or any liability of such Person (i) for
borrowed money; (ii) in respect of obligations evidenced by bonds, debentures, notes or other
similar instruments; (iii) in respect of letters of credit, bankers’ acceptances or other similar
instruments (including reimbursement obligations with respect thereto); (iv) to pay the deferred
and unpaid purchase price of any property (except trade payables); (v) in respect of any obligation
required under GAAP to be classified and accounted for as a capitalized lease or any sale/leaseback
transaction (except with respect to any sale/leaseback transactions relating to the
relocation of the corporate headquarters to One Erdman Place, Madison, WI 53717); (vi) in
respect of any or all Indebtedness of other Persons secured by a Lien on any asset of such Person,
whether or not such Indebtedness is assumed by such Person (excluding for the avoidance of doubt
all contractors’, mechanics’, materialmens’ and similar Liens imposed on the real property of third
parties that relate to design-build Contracts for such third parties that do not encumber assets of
a Merging Person do not constitute Indebtedness of any Merging Person); (vii) in respect of
Indebtedness of other Persons to the extent guaranteed by such Person; and (viii) to the extent not
otherwise included in this definition, net obligations of such Person under any interest rate,
foreign exchange or other swap, futures contract, option contract or other similar agreement or
hedging arrangement.

     “Indebtedness Adjustment” means the number (positive or negative) calculated by subtracting
the Closing Date Indebtedness from the Estimated Closing Date Indebtedness.

     “Indemnifying Party” has the meaning set forth in Section 10.3(a).

     “Indemnity Escrow Amount” means $24,700,000.

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     “Insurance Policies” has the meaning set forth in Section 4.22.

     “Interim Financial Statements” has the meaning set forth in Section 4.14(a).

     “IRS” means the Internal Revenue Service.

     “Knowledge” with respect to the Holding Company, means the actual knowledge of Scott Ransom,
William L. Peel, Jr. and Brian Happ, after due inquiry.

     “Leased Real Estate” means property leased, used or occupied by the Merging Companies pursuant
to a Real Estate Lease.

     “Legal Requirement” means any applicable federal, state, local, municipal, foreign,
international, multinational or other administrative order, constitution, law, ordinance, principle
of common law, regulation, statute or treaty.

     “Liens” means all mortgages, pledges, security interests, encumbrances, title defects, title
retention agreements, voting trust agreements, Liens, charges or similar restrictions or
limitations, including a restriction on the right to vote, sell or otherwise dispose of any Merger
Shares (other than restrictions on transfers imposed by federal or state securities laws).

     “Liquidation Consideration” has the meaning set forth in Section 1.4(b).

     “Listed Intellectual Property” has the meaning set forth in Section 4.13(a).

     “Losses” means all actual out-of-pocket damages (excluding incidental, punitive, lost
opportunity, speculative, multiple of profits and consequential or special damages of any nature
but subject to Section 10.4(h), including loss of value), losses, deficiencies,
liabilities, claims, actions, demands, judgments, fines, fees, costs and expenses (including,
without limitation, reasonable attorneys’ and accountants’ fees), Taxes and interest on any of the
foregoing.

     “M&I Debt” has the meaning set forth in Section 3.2(k)(vi).

     “Material Adverse Effect” means any change, effect or circumstance that has had, or reasonably
may be expected to have, a material adverse effect on the business, assets, financial or other
condition or results of operations of the Holding Company or the Surviving Company, as applicable,
or on the ability of the Holding Company to timely consummate the Transactions; excluding,
however, any such effect that results from: (i) changes in general business or economic
conditions, (ii) national or international political or social developments, including the
engagement by the United States in hostilities, whether or not pursuant to the declaration of a
national emergency or war, or the occurrence of any military or terrorist attack upon the United
States, or any of its territories, possessions, or diplomatic or consular offices or upon any
military installation, equipment or personnel of the United States, (iii) developments in
financial, banking or securities markets (including any disruption thereof and any decline in the
price of any security or any market index), (iv) changes in GAAP, (v) changes in Legal Requirements
(including without limitation Legal Requirements bearing upon or relating to the health care
industry or the health care construction industry), (vi) the negotiation, execution and delivery of
this Agreement, the identity or business plans of the Buyer Parties or their Affiliates, or the

50

 

announcement or consummation of the Transactions, including any impact thereof on relationships,
contractual or otherwise, with customers, suppliers, distributors, partners or employees or any
employee of the Merging Companies by reason of resignation, retirement, death or permanent
disability, or (vii) the taking of any action required or expressly permitted by the Transaction
Documents.

     “Material Contract” means any of the following Contracts currently in effect:

          (a) under which any of the Merging Companies are or are likely to be entitled to receive
revenues of more than $500,000 in any calendar year;

          (b) under which any of the Merging Companies are or are likely to become subject to any
obligation to pay a liability of more than $250,000 in any calendar year;

          (c) by which assets owned or used by any of the Merging Companies having a net book value of
$250,000 or more are bound;

          (d) which creates a Lien on any property or asset of any of the Merging Companies (other than
Permitted Liens) or the Shares;

          (e) which constitutes a Real Estate Lease;

          (f) among any of the Merging Companies and any Seller which holds more than five percent (5%)
of the Shares, any Related Person of any such Seller or any Affiliate of any such Seller;

          (g) containing non-competition covenants restricting any of the Merging Companies;

          (h) granting to any Person a first refusal, a first offer or similar preferential right to
purchase or acquire any Shares;

          (i) involving the acquisition by any of the Merging Companies of any business enterprise
whether via stock or asset purchase or otherwise; or

          (j) that could require reimbursement pursuant to Contract Guarantees.

     “Materials of Environmental Concern” means any hazardous waste, as defined by 42 U.S.C.
§6903(5), any hazardous substance as defined by 42 U.S.C. §9601(14), any pollutant or contaminant
as defined by 42 U.S.C. §9601(33) and mold or other fungus, any toxic substance, oil or hazardous
material, or any other chemical or substance regulated by any Environmental, Health and Safety
Laws.

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

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

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

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     “Merger Consideration” means the aggregate Per Share Merger Consideration.

     “Merger Share(s)” has the meaning set forth in Section 1.4(a).

     “Merger Sub” has the meaning set forth in the Preamble to this Agreement.

     “Merging Company(ies)” has the meaning set forth in the Preamble to this Agreement.

     “Most Recent Balance Sheet” has the meaning set forth in Section 4.14.

     “Multiemployer Plan” has the meaning set forth in ERISA § 3(37).

     “Non-ERISA Plan” has the meaning set forth in Section 4.19(a).

     “Non-Voting Common Shares” has the meaning set forth in Section 4.7(a).

     “Notice of Disagreement” has the meaning set forth in Section 2.1(c).

     “Operating Company” has the meaning set forth in the Preamble to this Agreement.

     “Option Payment” has the meaning set forth in Section 1.4(e)(i).

     “Order” means any award, decision, injunction, judgment, order, ruling, subpoena, or verdict,
entered, issued, made or rendered by any court, administrative agency or any other Governmental
Body or by any arbitrator.

     “Outside Date” has the meaning set forth in Section 9.1(b).

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

     “Payoff Statements” has the meaning set forth in Section 3.2(k)(v).

     “Per Share Merger Consideration” means the Total Cash Equity Price divided by the Fully
Diluted Share Amount.

     “Permitted Liens” means (i) Liens for Taxes, assessments or other governmental charges not yet
due and payable or which may thereafter be paid without penalty, (ii) mechanics’, workmen’s,
repairmen’s, warehousemen’s, carriers’ or other like Liens arising or incurred in the ordinary
course of business if the underlying obligations are not past due, (iii) any interest or title of a
lessor under an operating lease or capitalized lease or of any licensor under a license, (iv) Liens
identified on Schedule 4.9 and (v) imperfections of title and Liens the existence of which,
in the aggregate, would not reasonably be expected to have a Material Adverse Effect.

     “Person” means any individual, corporation, general or limited partnership, limited liability
company, joint venture, estate, trust, association, organization, labor union or other entity or
Governmental Body.

     “Pre-Closing Income Tax Return” means any Return filed on or after the Closing with respect to
any Tax Period that commenced prior to the Closing.

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     “Pre-Closing Tax Liability” means any liability for Taxes of any of the Merging Companies or
any Subsidiaries thereof payable with respect to any taxable period or portion thereof ending on or
before the Closing Date; for further clarity, deferred Taxes established to reflect timing
differences between book and Tax income shall not constitute a “Pre-Closing Tax Liability,” and any
liability for Taxes with respect to any portion of 2008 shall be calculated without reference to
any Tax deduction that may be available based on the Senior Executive Bonuses. For the purposes of
this definition, if the Effective Date is later than the Closing Date, then all references in this
definition to the Closing Date shall be deemed to be references to the Effective Date. For the
purposes of this definition, in the case of Taxes that are payable with respect to a taxable period
that begins before the Closing Date and ends after the Closing Date, the portion of any such Tax
that is allocable to the portion of the period ending on the Closing Date shall be:

          (i) in the case of Taxes that are either (x) based upon or related to income or receipts, or
(y) imposed in connection with any sale or other transfer or assignment of property (real or
personal, tangible or intangible) (other than conveyances pursuant to this Agreement, as provided
under Section 11.2), deemed equal to the amount which be payable if the taxable year ended
with the Closing Date; and

          (ii) in the case of Taxes imposed on a periodic basis with respect to the assets of any
Merging Company or any Subsidiary thereof or otherwise measured by the level or any item, deemed to
be the amount of such Taxes for the entire period (or, in the case of such Taxes determined on an
arrears basis, the amount of such Taxes for the immediately preceding period) multiplied by a
fraction the numerator of which is the number of calendar days in the period ending on the Closing
Date and the denominator of which is the number of calendar days in the entire period.

     “Preferred Shareholders” has the meaning set forth in Section 1.4(b).

     “Preferred Shares” means all of the issued and outstanding one cent ($.01) par value Series A
Preferred Stock in the Holding Company.

     “Proceeding” means any action, arbitration, audit, hearing, investigation, litigation or suit
(whether civil, criminal or administrative) commenced, brought, conducted or heard by or before, or
otherwise involving, any Governmental Body or arbitrator.

     “Real Estate Leases” means those Contracts pursuant to which any of the Merging Companies
lease real property.

     “Records” means all books, records, manuals and other materials and information of any of the
Merging Companies including, without limitation, customer records, personnel and payroll records,
accounting records, purchase and sale records, price lists, correspondence, quality control records
and all research and development files, wherever located.

     “Required Consents” means those consents identified in Exhibit 3.2(e).

     “Related Person” with respect to a particular individual means (i) each other member of such
individual’s Family, (ii) any Person that is directly or indirectly controlled by such

53

 

individual
or one or more members of such individual’s Family or (iii) any Person with respect to which such
individual or one or more members of such individual’s Family serves as a director, officer,
partner, executor or trustee (or in a similar capacity). For purposes of this definition, the
“Family” of an individual includes the individual’s spouse and issue.

     “Reserve Account” has the meaning set forth in Section 2.3(e).

     “Reserve Amount” has the meaning set forth in Section 2.3(e).

     “Restricted Merger Share” has the meaning set forth in Section 1.4(e)(ii).

     “Restricted Stock” means Common Shares received from the exercise of a Company Option where,
pursuant to the terms of the Company Option, the Common Shares have not vested.

     “Returns” means all returns, informational returns and statements required to be filed by any
of the Merging Companies in respect of any Taxes.

     “Schedules” means the schedules attached hereto pursuant to Articles 3, 4 and 7.

     “Second Escrow Release Date” has the meaning set forth in Section 2.3(a).

     “Seller Representative” has the meaning set forth in Section 12.1.

     “Seller(s)” has the meaning set forth in Section 1.6(a).

     “Senior Executive Bonuses” has the meaning set forth in Section 6.9.

     “Shareholder Agreements” means those agreements listed on Schedule 3.2(k)(viii) by and
among the Sellers or a Seller and the Holding Company restricting the sale, transfer or other
disposition of any of the Shares.

     “Shareholder Approval” has the meaning set forth in Section 4.1(c).

     “Shareholders” has the meaning set forth in Section 4.1(c).

     “Shares” means all of the issued and outstanding capital stock in the Holding Company which
Shares are collectively comprised of the Common Shares and the Preferred Shares.

     “Shortfall Reduction” has the meaning set forth in Section 2.1(a).

     “Specified Claim” has the meaning set forth in Section 10.4(d).

     “Subsidiary” or “Subsidiaries” means, with respect to any Person or any entity, any
corporation, partnership, association or other business entity of which (i) if a corporation, a
majority of the total voting power of shares of stock entitled (irrespective of whether, at the
time, stock of any other class or classes of such corporation has or might have voting power by
reason of the happening of any contingency) to vote in the election of directors, managers, or
trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or
entity or one or

54

 

more of the other Subsidiaries of that Person or entity or a combination thereof
or (ii) if a partnership, association or other business entity, a majority of the partnership or
other similar ownership interest thereof is at the time owned or controlled, directly or
indirectly, by any Person or one or more Subsidiaries of that Person or entity or a combination
thereof.

     “Surviving Company” has the meaning set forth in Section 1.1.

     “Tax” and “Taxes” means all federal, state, county, local, foreign and other taxes or
assessments including, without limitation, income, estimated income, business, occupation,
franchise, property (real and personal), sales, use, employment, social security, social welfare,
pension, medical, VAT, gross receipts, transfer, ad valorem, profits, license, capital, payroll,
employee withholding, unemployment, excise, goods and services, severance, escheat of unclaimed
property, stamp and including interest, penalties and additions in connection therewith.

     “Tax Authority” means any Governmental Body with regulatory authority to assess, assert or
otherwise impose Tax adjustments or collect unpaid Taxes of any Person.

     “Tax Claim” has the meaning set forth in Section 10.3(e).

     “Taxable Period” means any taxable year or any other period that is treated as a taxable year
(or other period, or portion thereof, in the case of a Tax imposed with respect to such other
period, e.g., a quarter) with respect to which any Tax may be imposed under applicable Legal
Requirement.

     “Third-Party Claim” has the meaning set forth in Section 10.3(a).

     “Total Cash Equity Price” means, without duplication (a) $247,000,000, minus (b) the
Liquidation Consideration, minus (c) the Closing Date Indebtedness, minus (d) the Excluded
Liabilities, plus or minus (e) the Excess Payment or Shortfall Reduction as finally determined
pursuant to Section 2.1, minus (f) the sum of the Indemnity Escrow Amount, the Appraisal
Rights Amount (if any) and the Reserve Amount, plus (g) the amounts released from the Escrow
Account and from the Reserve Account for the benefit of the Sellers as provided in this Agreement.

     “Transaction Documents” means, as to any party, this Agreement and the agreements, documents
and instruments to be executed and delivered by such party pursuant to this Agreement including,
without limitation, the voting agreements referred to in the Recitals to this Agreement and
excluding any employment or other agreement entered into by any Seller in his, her or its capacity
as an employee of or consultant to the Surviving Company.

     “Transactions” means the Merger, the Liquidation and the other transactions contemplated in
the Transaction Documents.

     “UCC Financing Statement” has the meaning set forth in Section 4.26.

     “Voting Common Shares” has the meaning set forth in Section 4.7(a).

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

     “Working Capital” means the amount (positive or negative) equal to (a) the Holding Company’s
consolidated current assets (including cash, cash equivalents and short term investments but not
including deferred Tax assets other than the Deal Bonus Tax Asset) as of the close of business on
the day immediately preceding the Closing Date, minus (b) the consolidated current liabilities
(including unpaid tax liabilities, calculated as provided in Schedule 2.1) of the Holding
Company as of the close of business on the day immediately preceding the Closing Date, each as
determined in accordance with GAAP with the adjustments and other exceptions reflected in
Schedule 2.1.

     “Working Capital Adjustment” means the number (positive or negative) calculated by subtracting
the Working Capital Target from the Working Capital.

     “Working Capital Target” means $zero.

ARTICLE 14

MISCELLANEOUS

     14.1 Expenses. Except as otherwise specifically provided in this Agreement, the
parties hereto will pay their own expenses, including, without limitation, accountants’ and
attorneys’ fees incurred in connection with the negotiation and consummation of the Transactions.
Any such fees that remain unpaid on the Closing Date will be paid by wire transfer at the Closing.

     14.2 Notices. All notices or other communications required or permitted to be given hereunder will be in
writing and will be considered to be given and received in all respects when hand delivered, when
sent by prepaid express or courier delivery service, when sent by facsimile transmission actually
received by the receiving equipment or three (3) days after deposited in the United States mail,
certified mail, postage prepaid, return receipt requested, in each case addressed as follows, or to
such other address as designated by notice duly given:

          (a) If to any of the Buyer Parties or the Surviving Company:

Cogdell Spencer Inc.

4401 Barclay Downs Drive

Suite 380

Charlotte, NC 28209

Attn: Frank Spencer

Fax No.: (704) 940-2957

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          (b) If to the Merging Companies:

Baird Capital Partners

777 East Wisconsin Avenue

P.O. Box 0672

Milwaukee, WI 53201

Attn: Dave Pelisek

Fax No.: (414) 298-7490

Lubar & Co.

700 North Water Street

Suite 1200

Milwaukee, WI 53202

Attn: David Lubar

Fax No.: (414) 291-9061

And a Copy To:

 Godfrey & Kahn, S.C.

780 North Water Street

Milwaukee, WI 53202

Attn: John A. Dickens, Esq.

Fax No.: (414) 273-5198

Telephone: (414) 273-3500

          (c) If to the Seller Representative:

Baird Capital Partners

777 East Wisconsin Avenue

P.O. Box 0672

Milwaukee, WI 53201

Attn: Dave Pelisek

Fax No.: (414) 298-7490

Lubar & Co.

700 North Water Street

Suite 1200

Milwaukee, WI 53202

Attn: David Lubar

Fax No.: (414) 291-9061

Marshall Erdman & Associates, Inc.

P.O. Box 44975

Madison, WI 53744

Attn: Scott Ransom

Fax No.: (608) 218-6575

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     14.3 Entire Agreement. This Agreement, the Schedules and the other Transaction
Documents constitute the entire agreement among the parties hereto relating to the subject matter
hereof, and all prior agreements, correspondence, discussions and understandings of the parties
(whether oral or written) are merged in and made a part of this Agreement, it being the intention
of the parties hereto that this Agreement and the instruments and agreements contemplated hereby
serves as the complete and exclusive statement of the terms of their agreement with respect to the
Transactions. No amendment, waiver or modification hereto or hereunder is valid unless in writing
signed by an authorized signatory of the party or parties to be affected thereby.

     14.4 Confidentiality Agreement. The parties acknowledge and agree that until such
time as the Closing occurs, or if this Agreement is terminated prior to the Closing, the terms and
conditions of the Confidentiality Agreement, dated August 9, 2007, by and between Cogdell Spencer
Inc. and Wachovia Capital Markets, LLC for the benefit of the Merging Companies remains binding on
the parties thereto in accordance with its terms; at the Closing, such Confidentiality Agreement
terminates and is of no further force and effect.

     14.5 Construction. The parties have participated jointly in the negotiation and
drafting of this Agreement. In the event an ambiguity or question of intent or interpretation
arises, this Agreement is construed as if drafted jointly by the parties and no presumption of
burden of proof arises
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement.

     14.6 Assignment. This Agreement and the rights hereunder are not assignable or
transferable by any party without the prior written consent of the Parent and the Holding Company
prior to Closing, and the Parent and the Seller Representative after Closing.

     14.7 Binding Effect. This Agreement is binding upon the parties hereto and their
respective heirs, successors, legal representatives and permitted assigns.

     14.8 Paragraph Headings. The headings in this Agreement are for purposes of
convenience and ease of reference only and do not limit or otherwise affect the meaning of any part
of this Agreement.

     14.9 Severability. The parties agree that if any provision of this Agreement under
any circumstances is deemed invalid or inoperative, then this Agreement is construed with the
invalid or inoperative provision deleted, and the rights and obligations of the parties are
construed and enforced accordingly.

     14.10 Governing Law. THIS AGREEMENT IS GOVERNED BY AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF WISCONSIN WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAW. THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY CONSENT TO SUBMIT TO THE EXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF WISCONSIN AND OF THE UNITED STATES OF AMERICA LOCATED IN
THE STATE OF WISCONSIN FOR ANY ACTIONS, SUITS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THE
TRANSACTION DOCUMENTS AND THE TRANSACTIONS (AND AGREE NOT TO COMMENCE ANY ACTION, SUIT, OR
PROCEEDING RELATING THERETO EXCEPT IN

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SUCH COURTS). THE PARTIES HEREBY IRREVOCABLY AND
UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE ON ANY ACTION, SUIT OR PROCEEDING
ARISING OUT OF THE TRANSACTION DOCUMENTS OR THE TRANSACTIONS, IN THE COURTS OF THE STATE OF
WISCONSIN OR THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF WISCONSIN, AND HEREBY FURTHER
IRREVOCABLY AND UNCONDITIONALLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY
SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT
FORUM.

     14.11 Use of Terms. In this Agreement (a) the words “hereof,” “herein,” “hereto,” “hereunder,” and words of
similar import may refer to this Agreement as a whole and not merely to a specific section,
paragraph, or clause in which the respective word appears, (b) words importing gender include the
other gender as appropriate, (c) any terms defined in this Agreement may, unless the context
otherwise requires, be used in the singular or the plural depending on the reference, (d) unless
otherwise stated, references to any Section, Article, Schedule or Exhibit are to such Section or
Article of, or Schedule or Exhibit to, this Agreement, (e) the word “including” means including
without limitation and (f) the word “shall” denotes a directive and obligation, and not an option.

     14.12 Counterparts. This Agreement may be executed in one or more counterparts, all
of which are considered but one and the same agreement, and become effective when one or more such
counterparts have been signed by each of the parties and delivered to the other party. A facsimile
signature of this Agreement is effective as an original.

     14.13 Good Faith; Consents. Each of the parties agrees to act in good faith in
connection with any matters arising under or relating to the Transaction Documents and the
Transactions and, where a consent may be required, not to unreasonably delay or withhold such
consent.

     14.14 No Third Party Beneficiary. Nothing in this Agreement, express or implied, is
intended to confer upon any Person, other than the parties hereto, the Sellers, a Claiming Party or
their respective heirs, successors, legal representatives and permitted assign, any rights or
remedies under or by reason of this Agreement.

59

 

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

	 	 	 	 	 	 	 
	 	 	COGDELL SPENCER INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 Name:
	 	 

Frank C. Spencer
	 	 
	 

	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	PARENT:	 	 
	 
	 	 	 	 	 	 
	 	 	COGDELL SPENCER LP	 	 
	 
	 	 	 	 	 	 
	 	 	By: CS Business Trust I, its General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Cogdell Spencer Inc., its Sole Beneficial Owner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 Name:
	 	 

Frank C. Spencer
	 	 
	 

	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	MERGER SUB:	 	 
	 
	 	 	 	 	 	 
	 	 	GOLDENBOY ACQUISITION CORP.	 	 
	 
	 	 	 	 	 	 
	 	 	By: Cogdell Spencer LP, its Sole Beneficial Owner	 	 
	 
	 	 	 	 	 	 
	 	 	By: CS Business Trust I, its General Partner	 	 
	 
	 	 	 	 	 	 
	 	 	By: Cogdell Spencer Inc., its Sole Beneficial Owner	 	 

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 
	 	 

	 	 
	 

	 	Name:
	 	Frank C. Spencer	 	 
	 

	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 
	 	 	THE HOLDING COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	MEA HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 Name:
	 	 

	 	 
	 

	 	 Title:
	 	 

	 	 
	 

	 	 
	 	 

	 	 

Signature page to Merger Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MEA:	 	 
	 
	 	 	 	 	 	 
	 	 	MARSHALL ERDMAN & ASSOCIATES, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 Name:
	 	 

	 	 
	 

	 	 Title:
	 	 

	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	MED:	 	 
	 
	 	 	 	 	 	 
	 	 	MARSHALL ERDMAN DEVELOPMENT, LLC	 	 
	 
	 

	 	By:	 	 	 	 
	 

	 	 Name:
	 	 

	 	 
	 

	 	 Title:
	 	 

	 	 
	 

	 	 
	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	SELLER REPRESENTATIVES:	 	 

	 	 	 	 	 
	 

	 	 

	 	 
	 

	 	David Pelisek	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	David Lubar	 	 
	 
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Scott Ransom

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]