Document:

Exhibit 10.1

 

ECHO GLOBAL LOGISTICS LLC

2005 STOCK OPTION PLAN

 

1.                                       ESTABLISHMENT,
PURPOSE AND TERM OF PLAN.

 

1.1                                 Establishment. Echo Global Logistics LLC 2005 Stock Option
Plan (the “Plan”) is hereby established
effective as of March 1, 2005.

 

1.2                                 Purpose. The purpose of the Plan is to advance the
interests of the Participating Company Group and its stockholders by providing
an incentive to attract, retain and reward persons performing services for the
Participating Company Group and by motivating such persons to contribute to the
growth and profitability of the Participating Company Group.

 

1.3                                 Term of Plan. The Plan shall continue in effect until the
earlier of its termination by the Board or the date on which all of the shares
of Stock available for issuance under the Plan have been issued and all
restrictions on such shares under the terms of the Plan and the agreements
evidencing Options granted under the Plan have lapsed. However, all Options
shall be granted, if at all, within ten (10) years from the earlier
of the date the Plan is adopted by the Board or the date the Plan is duly
approved by the stockholders of the Company.

 

2.                                       DEFINITIONS
AND CONSTRUCTION.

 

2.1                                 Definitions.
Whenever used herein, the following terms shall have their
respective meanings set forth below:

 

(a)                                  “Board”
means the Board of Directors or Managers of the Company. If one or more
Committees have been appointed by the Board to administer the Plan, “Board” also means such Committee(s).

 

(b)                                 “Code”
means the Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.

 

(c)                                  “Committee”
means the Compensation Committee or other committee of the Board duly appointed
to administer the Plan and having such powers as shall be specified by the
Board. Unless the powers of the Committee have been specifically limited, the
Committee shall have all of the powers of the Board granted herein, including,
without limitation, the power to amend or terminate the Plan at any time,
subject to the terms of the Plan and any applicable limitations imposed by law.

 

(d)                                 “Company”
means Echo Global Logistics LLC, a Delaware corporation, or any successor
corporation thereto.

 

(e)                                  “Consultant”
means any person, including an advisor, engaged by a Participating Company to
render services other than as an Employee or a Director.

 

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(f)                                    “Director” means a member of the
Board of Directors or Managers or of the board of directors of any other
Participating Company.

 

(g)                                 “Disability”
means the inability of the Optionee, in the opinion of a qualified physician
acceptable to the Company, to perform the major duties of the Optionee’s
position with the Participating Company Group because of the sickness or injury
of the Optionee.

 

(h)                                 “Employee”
means any person treated as an employee (including an officer or a Director who
is also treated as an employee) in the records of a Participating Company and,
with respect to any Incentive Stock Option granted to such person, who is an
employee for purposes of Section 422 of the Code; provided, however, that
neither service as a Director nor payment of a director’s fee shall be
sufficient to constitute employment for purposes of the Plan.

 

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

 

(j)                                     “Fair Market Value” means, as of any
date, the value of a share of Stock or other property as determined by the
Board, in its discretion, or by the Company, in its discretion, if such
determination is expressly allocated to the Company herein, subject to the
following:

 

(i)                                     If, on such date,
the Stock is listed on a national or regional securities exchange or market
system, the Fair Market Value of a share of Stock shall be the closing price of
a share of Stock (or the mean of the closing bid and asked prices of a share of
Stock if the Stock is so quoted instead) as quoted on the Nasdaq National
Market, The Nasdaq SmallCap Market or such other national or regional
securities exchange or market system constituting the primary market for the Stock,
as reported in The Wall Street Journal or such other source as the
Company deems reliable. If the relevant date does not fall on a day on which
the Stock has traded on such securities exchange or market system, the date on
which the Fair Market Value shall be established shall be the last day on which
the Stock was so traded prior to the relevant date, or such other appropriate
day as shall be determined by the Board, in its discretion.

 

(ii)                                  If, on such date,
there is no public market for the Stock, the Fair Market Value of a share of
Stock shall be as determined by the Board in good faith without regard to any
restriction other than a restriction which, by its terms, will never lapse.

 

(k)                                  “Incentive
Stock Option” means an Option intended to be (as set forth in
the Option Agreement) and which qualifies as an incentive stock option within
the meaning of Section 422(b) of the Code.

 

(l)                                     “Insider” means an officer or a
Director of the Company or any other person whose transactions in Stock are
subject to Section 16 of the Exchange Act.

 

(m)                               “Nonstatutory
Stock Option” means an Option not intended to be (as set forth
in the Option Agreement) or which does not qualify as an Incentive Stock
Option.

 

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(n)                                 “Option”
means a right to purchase Stock (subject to adjustment as provided in Section 4.2)
pursuant to the terms and conditions of the Plan. An Option may be either
an Incentive Stock Option or a Nonstatutory Stock Option.

 

(o)                                 “Option
Agreement” means a written agreement, including any related form of
stock option grant agreement, between the Company and an Optionee setting forth
the terms, conditions and restrictions of the Option granted to the Optionee
and any shares acquired upon the exercise thereof.

 

(p)                                 “Optionee”
means a person who has been granted one or more Options.

 

(q)                                 “Parent
Corporation” means any present or future “parent corporation” of
the Company, as defined in Section 424(e) of the Code.

 

(r)                                    “Participating Company” means the
Company or any Parent Corporation or Subsidiary Corporation.

 

(s)                                  “Participating
Company Group” means, at any point in time, all corporations
collectively which are then Participating Companies.

 

(t)                                    “Rule 16b-3” means Rule 16b-3
under the Exchange Act, as amended from time to time, or any successor rule or
regulation.

 

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

 

(v)                                 “Service”
means an Optionee’s employment or service with the Participating Company Group,
whether in the capacity of an Employee, a Director or a Consultant. The
Optionee’s Service shall not be deemed to have terminated merely because of a
change in the capacity in which the Optionee renders Service to the
Participating Company Group or a change in the Participating Company for which
the Optionee renders such Service, provided that there is no interruption or
termination of the Optionee’s Service. Furthermore, an Optionee’s Service with
the Participating Company Group shall not be deemed to have terminated if the
Optionee takes any military leave, sick leave, or other bona fide leave of
absence approved by the Company; provided, however, that if any such leave
exceeds ninety (90) days, on the ninety-first (91st) day of such leave the
Optionee’s Service shall be deemed to have terminated unless the Optionee’s
right to return to Service with the Participating Company Group is guaranteed
by statute or contract. Notwithstanding the foregoing, unless otherwise
designated by the Company or required by law, a leave of absence shall not be
treated as Service for purposes of determining vesting under the Optionee’s
Option Agreement. The Optionee’s Service shall be deemed to have terminated
either upon an actual termination of Service or upon the corporation for which
the Optionee performs Service ceasing to be a Participating Company. Subject to
the foregoing, the Company, in its discretion, shall determine whether the
Optionee’s Service has terminated and the effective date of such termination.

 

(w)                               “Stock”
means the common stock, shares, or units of the Company, as adjusted from time
to time in accordance with Section 4.2.

 

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(x)                                   “Subsidiary Corporation” means any
present or future “subsidiary corporation” of the Company, as defined in Section 424(f) of
the Code.

 

(y)                                 “Ten
Percent Owner Optionee” means an Optionee who, at the time an
Option is granted to the Optionee, owns stock possessing more than ten percent
(10%) of the total combined voting power of all classes of stock of a
Participating Company within the meaning of Section 422(b)(6) of the
Code.

 

2.2                                 Construction.
Captions and titles contained herein are for convenience only and
shall not affect the meaning or interpretation of any provision of the Plan. Except
when otherwise indicated by the context, the singular shall include the plural
and the plural shall include the singular. Use of the term “or” is not intended
to be exclusive, unless the context clearly requires otherwise.

 

3.                                       ADMINISTRATION.

 

3.1                                 Administration
by the Board. The Plan shall be
administered by the Board. All questions of interpretation of the Plan or of
any Option shall be determined by the Board, and such determinations shall be
final and binding upon all persons having an interest in the Plan or such
Option.

 

3.2                                 Authority of
Officers. Any officer of a Participating Company shall have the
authority to act on behalf of the Company with respect to any matter, right,
obligation, determination or election which is the responsibility of or which
is allocated to the Company herein, provided the officer has apparent authority
with respect to such matter, right, obligation, determination or election.

 

3.3                                 Administration
with Respect to Insiders. With
respect to participation by Insiders in the Plan, at any time that any class of
equity security of the Company is registered pursuant to Section 12 of the
Exchange Act, the Plan shall be administered in compliance with the
requirements, if any, of Rule 16b-3.

 

3.4                                 Powers of
the Board. In addition to any other
powers set forth in the Plan and subject to the provisions of the Plan, the
Board shall have the full and final power and authority, in its discretion:

 

(a)                                  to determine the
persons to whom, and the time or times at which, Options shall be granted and
the number of shares of Stock to be subject to each Option;

 

(b)                                 to designate Options
as Incentive Stock Options or Nonstatutory Stock Options;

 

(c)                                  to determine the Fair
Market Value of shares of Stock or other property;

 

(d)                                 to determine the
terms, conditions and restrictions applicable to each Option (which need not be
identical) and any shares acquired upon the exercise thereof, including,
without limitation, (i) the exercise price of the Option, (ii) the
method of payment for 

 

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shares purchased upon the exercise of the
Option, (iii) the method for satisfaction of any tax withholding
obligation arising in connection with the Option or such shares, including by
the withholding or delivery of shares of stock, (iv) the timing, terms and
conditions of the exercisability of the Option or the vesting of any shares
acquired upon the exercise thereof, (v) the time of the expiration of the
Option, (vi) the effect of the Optionee’s termination of Service with the
Participating Company Group on any of the foregoing, and (vii) all other
terms, conditions and restrictions applicable to the Option or such shares not
inconsistent with the terms of the Plan;

 

(e)                                  to approve one or
more forms of Option Agreement;

 

(f)                                    to amend, modify,
extend, cancel, renew, reprice or otherwise adjust the exercise price of, or
grant a new Option in substitution for, any Option or to waive any restrictions
or conditions applicable to any Option or any shares acquired upon the exercise
thereof;

 

(g)                                 to accelerate,
continue, extend or defer the exercisability of any Option or the vesting of
any shares acquired upon the exercise thereof, including with respect to the
period following an Optionee’s termination of Service with the Participating
Company Group;

 

(h)                                 to prescribe, amend or
rescind rules, guidelines and policies relating to the Plan, or to adopt
supplements to, or alternative versions of, the Plan, including, without
limitation, as the Board deems necessary or desirable to comply with the laws
of, or to accommodate the tax policy or custom of, foreign jurisdictions whose
citizens may be granted Options; and

 

(i)                                     to correct any
defect, supply any omission or reconcile any inconsistency in the Plan or any
Option Agreement and to make all other determinations and take such other
actions with respect to the Plan or any Option as the Board may deem
advisable to the extent consistent with the Plan and applicable law.

 

4.                                       SHARES
SUBJECT TO PLAN.

 

4.1                                 Maximum
Number of Shares Issuable. Subject
to adjustment as provided in Section 4.2, the maximum aggregate number of
shares of Stock that may be issued under the Plan shall be 3,330,000
shares and shall consist of authorized but unissued or reacquired shares of
Stock or any combination thereof. If an outstanding Option for any reason
expires or is terminated or canceled or if shares of Stock are acquired upon
the exercise of an Option subject to a Company repurchase option and are
repurchased by the Company at the Optionee’s exercise price, the shares of
Stock allocable to the unexercised portion of such Option or such repurchased
shares of Stock shall again be available for issuance under the Plan.

 

4.2                                 Adjustments
for Changes in Capital Structure. In
the event of any stock dividend, stock split, reverse stock split,
recapitalization, combination, reclassification or similar change in the
capital structure of the Company, appropriate adjustments shall be made in the
number and class of shares subject to the Plan and to any outstanding
Options and in the exercise price per share of any outstanding Options. If a
majority of the shares which are of the 

 

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same class as the shares that are
subject to outstanding Options are exchanged for, converted into, or otherwise
become (whether or not pursuant to an Ownership Change Event, as defined in Section 8.1)
shares of another corporation (the “New Shares”),
the Board may unilaterally amend the outstanding Options to provide that
such Options are exercisable for New Shares. In the event of any such
amendment, the number of shares subject to, and the exercise price per share
of, the outstanding Options shall be adjusted in a fair and equitable manner as
determined by the Board, in its discretion. Notwithstanding the foregoing, any
fractional share resulting from an adjustment pursuant to this Section 4.2
shall be rounded down to the nearest whole number, and in no event may the
exercise price of any Option be decreased to an amount less than the par value,
if any, of the stock subject to the Option. The adjustments determined by the
Board pursuant to this Section 4.2 shall be final, binding and conclusive.

 

5.                                       ELIGIBILITY
AND OPTION LIMITATIONS.

 

5.1                                 Persons
Eligible for Options. Options
may be granted only to Employees, Consultants, and Directors. For purposes
of the foregoing sentence, “Employees,” “Consultants” and “Directors” shall
include prospective Employees, prospective Consultants and prospective
Directors to whom Options are granted in connection with written offers of an
employment or other service relationships with the Participating Company Group.
Eligible persons may be granted more than one (1) Option.

 

5.2                                 Option Grant
Restrictions. Any person who is not an
Employee on the effective date of the grant of an Option to such person may be
granted only a Nonstatutory Stock Option. An Incentive Stock Option granted to
a prospective Employee upon the condition that such person become an Employee
shall be deemed granted effective on the date such person commences Service
with a Participating Company, with an exercise price determined as of such date
in accordance with Section 6.1.

 

5.3                                 Fair Market
Value Limitation. To the extent that
options designated as Incentive Stock Options (granted under all stock option
plans of the Participating Company Group, including the Plan) become
exercisable by an Optionee for the first time during any calendar year for
stock having a Fair Market Value greater than One Hundred Thousand Dollars
($100,000), the portions of such options which exceed such amount shall be
treated as Nonstatutory Stock Options. For purposes of this Section 5.3,
options designated as Incentive Stock Options shall be taken into account in
the order in which they were granted, and the Fair Market Value of stock shall
be determined as of the time the option with respect to such stock is granted. If
the Code is amended to provide for a different limitation from that set forth
in this Section 5.3, such different limitation shall be deemed
incorporated herein effective as of the date and with respect to such Options
as required or permitted by such amendment to the Code. If an Option is treated
as an Incentive Stock Option in part and as a Nonstatutory Stock Option in
part by reason of the limitation set forth in this Section 5.3, the
Optionee may designate which portion of such Option the Optionee is
exercising. In the absence of such designation, the Optionee shall be deemed to
have exercised the Incentive Stock Option portion of the Option first. Separate
certificates representing each such portion shall be issued upon the exercise
of the Option.

 

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6.                                       TERMS
AND CONDITIONS OF OPTIONS.

 

Options shall be evidenced by Option Agreements specifying the number
of shares of Stock covered thereby, in such form as the Board shall from
time to time establish. No Option or purported Option shall be a valid and
binding obligation of the Company unless evidenced by a fully executed Option
Agreement. Option Agreements may incorporate all or any of the terms of the
Plan by reference and shall comply with and be subject to the following terms
and conditions:

 

6.1                                 Exercise
Price. The exercise price for each
Option shall be established in the discretion of the Board; provided, however,
that (a) the exercise price per share for an Incentive Stock Option shall
be not less than the Fair Market Value of a share of Stock on the effective
date of grant of the Option, (b) the exercise price per share for a
Nonstatutory Stock Option shall be not less than eighty-five percent (85%) of
the Fair Market Value of a share of Stock on the effective date of grant of the
Option, and (c) no Option granted to a Ten Percent Owner Optionee shall
have an exercise price per share less than one hundred ten percent (110%) of
the Fair Market Value of a share of Stock on the effective date of grant of the
Option. Notwithstanding the foregoing, an Option (whether an Incentive Stock
Option or a Nonstatutory Stock Option) may be granted with an exercise
price lower than the minimum exercise price set forth above if such Option is
granted pursuant to an assumption or substitution for another option in a
manner qualifying under the provisions of Section 424(a) of the Code.

 

6.2                                 Exercise
Period. Options shall be
exercisable at such time or times, or upon such event or events, and subject to
such terms, conditions, performance criteria, and restrictions as shall be
determined by the Board and set forth in the Option Agreement evidencing such
Option; provided, however, that (a) no Option shall be exercisable after
the expiration of ten (10) years after the effective date of grant of such
Option, (b) no Incentive Stock Option granted to a Ten Percent Owner
Optionee shall be exercisable after the expiration of five (5) years after
the effective date of grant of such Option, (c) no Option granted to a
prospective Employee, prospective Consultant or prospective Director may become
exercisable prior to the date on which such person commences Service with a
Participating Company, and (d) with the exception of an Option granted to
an officer, Director or Consultant, no Option shall become exercisable at a
rate less than twenty percent (20%) per year over a period of five (5) years
from the effective date of grant of such Option, subject to the Optionee’s
continued Service. Subject to the foregoing, unless otherwise specified by the
Board in the grant of an Option, any Option granted hereunder shall have a term
of ten (10) years from the effective date of grant of the Option.

 

6.3                                 Payment of
Exercise Price.

 

(a)                                  Forms
of Consideration Authorized. Except as otherwise provided below,
payment of the exercise price for the number of shares of Stock being purchased
pursuant to any Option shall be made (i) in cash, by check or cash
equivalent, (ii) by tender to the Company, or attestation to the
ownership, of shares of Stock owned by the Optionee having a Fair Market Value
(as determined by the Company without regard to any restrictions on
transferability applicable to such stock by reason of federal or state
securities laws or agreements with an underwriter for the Company) not less
than the exercise price, (iii) by the assignment of 

 

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the proceeds of a sale or loan with respect
to some or all of the shares being acquired upon the exercise of the Option
(including, without limitation, through an exercise complying with the
provisions of Regulation T as promulgated from time to time by the Board
of Governors of the Federal Reserve System) (a “Cashless
Exercise”), (iv) by the Optionee’s promissory note in a form approved
by the Company, (v) by such other consideration as may be approved by
the Board from time to time to the extent permitted by applicable law, or (vi) by
any combination thereof. The Board may at any time or from time to time,
by adoption of or by amendment to the standard forms of Option Agreement
described in Section 7, or by other means, grant Options which do not
permit all of the foregoing forms of consideration to be used in payment of the
exercise price or which otherwise restrict one or more forms of consideration.

 

(b)                                 Limitations
on Forms of Consideration.

 

(i)                                     Tender of Stock. Notwithstanding the foregoing, an Option may not
be exercised by tender to the Company, or attestation to the ownership, of
shares of Stock to the extent such tender or attestation would constitute a
violation of the provisions of any law, regulation or agreement restricting the
redemption of the Company’s stock. Unless otherwise provided by the Board, an
Option may not be exercised by tender to the Company, or attestation to
the ownership, of shares of Stock unless such shares either have been owned by
the Optionee for more than six (6) months or were not acquired, directly
or indirectly, from the Company.

 

(ii)                                  Cashless
Exercise. The Company reserves, at any and all times, the right, in
the Company’s sole and absolute discretion, to establish, decline to approve or
terminate any program or procedures for the exercise of Options by means of a
Cashless Exercise.

 

(iii)                               Payment by
Promissory Note. No promissory note shall be permitted if the
exercise of an Option using a promissory note would be a violation of any law. Any
permitted promissory note shall be on such terms as the Board shall determine
at the time the Option is granted. The Board shall have the authority to permit
or require the Optionee to secure any promissory note used to exercise an
Option with the shares of Stock acquired upon the exercise of the Option or
with other collateral acceptable to the Company. Unless otherwise provided by
the Board, if the Company at any time is subject to the regulations promulgated
by the Board of Governors of the Federal Reserve System or any other
governmental entity affecting the extension of credit in connection with the
Company’s securities, any promissory note shall comply with such applicable
regulations, and the Optionee shall pay the unpaid principal and accrued
interest, if any, to the extent necessary to comply with such applicable
regulations.

 

6.4                                 Tax
Withholding. The Company shall have the
right, but not the obligation, to deduct from the shares of Stock issuable upon
the exercise of an Option, or to accept from the Optionee the tender of, a
number of whole shares of Stock having a Fair Market Value, as determined by
the Company, equal to all or any part of the federal, state, local and
foreign taxes, if any, required by law to be withheld by the Participating
Company Group with respect to such Option or the shares acquired upon the
exercise thereof. Alternatively or in addition, in its discretion, the Company
shall have the right to require the Optionee, through 

 

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payroll withholding, cash payment or
otherwise, including by means of a Cashless Exercise, to make adequate
provision for any such tax withholding obligations of the Participating Company
Group arising in connection with the Option or the shares acquired upon the
exercise thereof. The Company shall have no obligation to deliver shares of
Stock or to release shares of Stock from an escrow established pursuant to the
Option Agreement until the Participating Company Group’s tax withholding
obligations have been satisfied by the Optionee.

 

6.5                                 Repurchase
Rights. Shares issued under the
Plan may be subject to a right of first refusal, one or more repurchase
options, or other conditions and restrictions as determined by the Board in its
discretion at the time the Option is granted. The Company shall have the right
to assign at any time any repurchase right it may have, whether or not
such right is then exercisable, to one or more persons as may be selected
by the Company. Upon request by the Company, each Optionee shall execute any
agreement evidencing such transfer restrictions prior to the receipt of shares
of Stock hereunder and shall promptly present to the Company any and all
certificates representing shares of Stock acquired hereunder for the placement
on such certificates of appropriate legends evidencing any such transfer
restrictions.

 

6.6                                 Effect of
Termination of Service.

 

(a)                                  Option
Exercisability. Subject to earlier termination of the Option as
otherwise provided herein, an Option shall be exercisable after an Optionee’s
termination of Service as follows:

 

(i)                                     Disability. If the Optionee’s Service with the Participating
Company Group is terminated because of the Disability of the Optionee, the
Option, to the extent unexercised and exercisable on the date on which the
Optionee’s Service terminated, may be exercised by the Optionee (or the
Optionee’s guardian or legal representative) at any time prior to the
expiration of six (6) months (or such longer period of time as determined
by the Board, in its discretion) after the date on which the Optionee’s Service
terminated, but in any event no later than the date of expiration of the Option’s
term as set forth in the Option Agreement evidencing such Option (the “Option Expiration Date”).

 

(ii)                                  Death. If
the Optionee’s Service with the Participating Company Group is terminated
because of the death of the Optionee, the Option, to the extent unexercised and
exercisable on the date on which the Optionee’s Service terminated, may be
exercised by the Optionee’s legal representative or other person who acquired
the right to exercise the Option by reason of the Optionee’s death at any time
prior to the expiration of six (6) months (or such longer period of time
as determined by the Board, in its discretion) after the date on which the
Optionee’s Service terminated, but in any event no later than the Option
Expiration Date. The Optionee’s Service shall be deemed to have terminated on
account of death if the Optionee dies within thirty (30) days (or such longer
period of time as determined by the Board, in its discretion) after the
Optionee’s termination of Service.

 

(iii)                               Other
Termination of Service. If the Optionee’s Service with the
Participating Company Group terminates for any reason, except Disability or
death, the Option, to the extent unexercised and exercisable by the Optionee on
the date on which the Optionee’s Service terminated, may be exercised by
the Optionee within thirty (30) days (or such 

 

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longer period of time as determined by the
Board, in its discretion) after the date on which the Optionee’s Service
terminated, but in any event no later than the Option Expiration Date.

 

(b)                                 Extension
if Exercise Prevented by Law. Notwithstanding the foregoing, if
the exercise of an Option within the applicable time periods set forth in Section 6.6(a) is
prevented by the provisions of Section 11 below, the Option shall remain
exercisable until thirty (30) days (or such longer period of time as determined
by the Board, in its discretion) after the date the Optionee is notified by the
Company that the Option is exercisable, but in any event no later than the
Option Expiration Date.

 

(c)                                  Extension
if Optionee Subject to Section 16(b). Notwithstanding the
foregoing, if a sale within the applicable time periods set forth in Section 6.6(a) of
shares acquired upon the exercise of the Option would subject the Optionee to
suit under Section 16(b) of the Exchange Act, the Option shall remain
exercisable until the earliest to occur of (i) the tenth (10th) day
following the date on which a sale of such shares by the Optionee would no
longer be subject to such suit, (ii) the one hundred and ninetieth (190th)
day after the Optionee’s termination of Service, or (iii) the Option
Expiration Date.

 

7.                                       STANDARD
FORMS OF OPTION AGREEMENT.

 

7.1                                 General. Unless otherwise provided by the Board at the
time the Option is granted, an Option shall comply with and be subject to the
terms and conditions set forth in the standard forms of Option Agreement
adopted by the Board concurrently with its adoption of the Plan and as amended
from time to time.

 

7.2                                 Authority to
Vary Terms. The Board shall have the
authority from time to time to vary the terms of any of the standard forms of
Option Agreement described in this Section 7 either in connection with the
grant or amendment of an individual Option or in connection with the authorization
of a new standard form or forms; provided, however, that the terms and
conditions of any such new, revised or amended standard form or forms of
Option Agreement are not inconsistent with the terms of the Plan.

 

8.                                       CHANGE
IN CONTROL.

 

8.1                                 Definitions.

 

(a)                                  An “Ownership Change Event” shall be
deemed to have occurred if any of the following occurs with respect to the
Company:  (i) the direct or indirect
sale or exchange in a single or series of related transactions by the
stockholders of the Company of more than fifty percent (50%) of the voting
stock of the Company; (ii) a merger or consolidation in which the Company
is a party; (iii) the sale, exchange, or transfer of all or substantially
all of the assets of the Company; or (iv) a liquidation or dissolution of
the Company.

 

(b)                                 A “Change in Control” shall mean an
Ownership Change Event or a series of related Ownership Change Events
(collectively, a “Transaction”) wherein the
stockholders of the Company immediately before the Transaction do not retain
immediately after the Transaction, in substantially the same proportions as
their ownership of shares of the Company’s voting stock immediately before the
Transaction, direct or indirect beneficial 

 

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ownership of more than fifty percent (50%) of
the total combined voting power of the outstanding voting stock of the Company
or the corporation or corporations to which the assets of the Company were
transferred (the “Transferee Corporation(s)”),
as the case may be. For purposes of the preceding sentence, indirect
beneficial ownership shall include, without limitation, an interest resulting
from ownership of the voting stock of one or more corporations which, as a
result of the Transaction, own the Company or the Transferee Corporation(s), as
the case may be, either directly or through one or more subsidiary
corporations. The Board shall have the right to determine whether multiple
sales or exchanges of the voting stock of the Company or multiple Ownership
Change Events are related, and its determination shall be final, binding and
conclusive.

 

8.2                                 Effect of
Change in Control on Options. In
the event of a Change in Control, the surviving, continuing, successor, or
purchasing corporation or parent corporation thereof, as the case may be
(the “Acquiring Corporation”), may either
assume the Company’s rights and obligations under outstanding Options or
substitute for outstanding Options substantially equivalent options for the
Acquiring Corporation’s stock. For purposes of this Section 8.2, an Option
shall be deemed assumed if, following the Change in Control, the Option confers
the right to purchase in accordance with its terms and conditions, for each
share of Stock subject to the Option immediately prior to the Change in
Control, the consideration (whether stock, cash or other securities or
property) to which a holder of a share of Stock on the effective date of the
Change in Control was entitled. Any Options which are neither assumed or
substituted for by the Acquiring Corporation in connection with the Change in
Control nor exercised as of the date of the Change in Control shall terminate
and cease to be outstanding effective as of the date of the Change in Control. Notwithstanding
the foregoing, shares acquired upon exercise of an Option prior to the Change
in Control and any consideration received pursuant to the Change in Control
with respect to such shares shall continue to be subject to all applicable
provisions of the Option Agreement evidencing such Option except as otherwise
provided in such Option Agreement.

 

9.                                       PROVISION
OF INFORMATION.

 

At least annually, copies of the Company’s balance sheet and income
statement for the just completed fiscal year shall be made available to each
Optionee and purchaser of shares of Stock upon the exercise of an Option. The
Company shall not be required to provide such information to key employees
whose duties in connection with the Company assure them access to equivalent
information.

 

10.                                 NONTRANSFERABILITY
OF OPTIONS.

 

During the lifetime of the Optionee, an Option shall be exercisable
only by the Optionee or the Optionee’s guardian or legal representative. No
Option shall be assignable or transferable by the Optionee, except by will or
by the laws of descent and distribution.

 

11.                                 COMPLIANCE
WITH SECURITIES LAW.

 

The grant of Options and the issuance of shares of Stock upon exercise
of Options shall be subject to compliance with all applicable requirements of
federal, state and foreign law 

 

11

 

with respect
to such securities. Options may not be exercised if the issuance of shares
of Stock upon exercise would constitute a violation of any applicable federal,
state or foreign securities laws or other law or regulations or the
requirements of any stock exchange or market system upon which the Stock may then
be listed. In addition, no Option may be exercised unless (a) a
registration statement under the Securities Act shall at the time of exercise
of the Option be in effect with respect to the shares issuable upon exercise of
the Option or (b) in the opinion of legal counsel to the Company, the
shares issuable upon exercise of the Option may be issued in accordance
with the terms of an applicable exemption from the registration requirements of
the Securities Act. The inability of the Company to obtain from any regulatory
body having jurisdiction the authority, if any, deemed by the Company’s legal
counsel to be necessary to the lawful issuance and sale of any shares hereunder
shall relieve the Company of any liability in respect of the failure to issue
or sell such shares as to which such requisite authority shall not have been
obtained. As a condition to the exercise of any Option, the Company may require
the Optionee to satisfy any qualifications that may be necessary or
appropriate, to evidence compliance with any applicable law or regulation and
to make any representation or warranty with respect thereto as may be
requested by the Company.

 

12.                                 INDEMNIFICATION.

 

In addition to such other rights of indemnification as they may have
as members of the Board or officers or employees of the Participating Company
Group, members of the Board and any officers or employees of the Participating
Company Group to whom authority to act for the Board or the Company is
delegated shall be indemnified by the Company against all reasonable expenses,
including attorneys’ fees, actually and necessarily incurred in connection with
the defense of any action, suit or proceeding, or in connection with any appeal
therein, to which they or any of them may be a party by reason of any
action taken or failure to act under or in connection with the Plan, or any
right granted hereunder, and against all amounts paid by them in settlement
thereof (provided such settlement is approved by independent legal counsel
selected by the Company) or paid by them in satisfaction of a judgment in any
such action, suit or proceeding, except in relation to matters as to which it
shall be adjudged in such action, suit or proceeding that such person is liable
for gross negligence, bad faith or intentional misconduct in duties; provided,
however, that within sixty (60) days after the institution of such action, suit
or proceeding, such person shall offer to the Company, in writing, the
opportunity at its own expense to handle and defend the same.

 

12

 

13.                                 TERMINATION
OR AMENDMENT OF PLAN.

 

The Board may terminate or amend the Plan at any time. However,
subject to changes in applicable law, regulations or rules that would
permit otherwise, without the approval of the Company’s stockholders, there
shall be (a) no increase in the maximum aggregate number of shares of
Stock that may be issued under the Plan (except by operation of the provisions
of Section 4.2), (b) no change in the class of persons eligible
to receive Incentive Stock Options, and (c) no other amendment of the Plan
that would require approval of the Company’s stockholders under any applicable
law, regulation or rule. No termination or amendment of the Plan may adversely
affect any then outstanding Option or any unexercised portion thereof, without
the consent of the Optionee, unless such termination or amendment is required
to enable an Option designated as an Incentive Stock Option to qualify as an
Incentive Stock Option or is necessary to comply with any applicable law,
regulation or rule.

 

14.                                 STOCKHOLDER
APPROVAL.

 

The Plan or any increase in the maximum aggregate number of shares of
Stock issuable thereunder as provided in Section 4.1 (the “Authorized Shares”) shall be
approved by the stockholders of the Company within twelve (12) months of the
date of adoption thereof by the Board. Options granted prior to stockholder
approval of the Plan or in excess of the Authorized Shares previously approved
by the stockholders shall become exercisable no earlier than the date of
stockholder approval of the Plan or such increase in the Authorized Shares, as
the case may be.

 

13Exhibit 10.14

 

Execution Copy

 

 

ASSET PURCHASE AGREEMENT

 

by and among

 

ECHO/TMG HOLDINGS, LLC,

 

MOUNTAIN LOGISTICS, INC. 

d/b/a TRANSPORTATION MANAGEMENT GROUP,

 

WALTER BUSTER SCHWAB,

 

AND

 

RYAN RENNE

 

 

	
  Table of Contents

  
	
   

  
	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE I
  PURCHASE AND SALE OF ASSETS

  	
  1

  
	
   

  	
  1.1  Purchase
  and Sale of Assets

  	
  1

  
	
   

  	
  1.2  Retained
  Assets

  	
  3

  
	
   

  	
  1.3  Assumed
  Liabilities

  	
  3

  
	
   

  	
  1.4  Retained
  Liabilities

  	
  4

  
	
   

  	
  1.5  Purchase
  Price

  	
  4

  
	
   

  	
  1.6  Earn-Out

  	
  5

  
	
   

  	
  1.7  Restricted
  Stock; Escrow

  	
  8

  
	
   

  	
  1.8  Allocation
  of Purchase Price

  	
  8

  
	
  ARTICLE II
  CLOSING

  	
  8

  
	
   

  	
  2.1  Time
  and Place

  	
  8

  
	
   

  	
  2.2  Transactions
  at the Closing

  	
  8

  
	
  ARTICLE III
  REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

  	
  10

  
	
   

  	
  3.1  Title

  	
  10

  
	
   

  	
  3.2  Enforceability

  	
  10

  
	
   

  	
  3.3  No
  Brokers

  	
  11

  
	
  ARTICLE IV
  REPRESENTATIONS AND WARRANTIES OF SELLER

  	
  11

  
	
   

  	
  4.1  Organization

  	
  11

  
	
   

  	
  4.2  No
  Subsidiaries

  	
  11

  
	
   

  	
  4.3  Capitalization

  	
  11

  
	
   

  	
  4.4  Authorization;
  Consents

  	
  12

  
	
   

  	
  4.5  Financial
  Statements

  	
  12

  
	
   

  	
  4.6  Absence
  of Undisclosed Liabilities

  	
  12

  
	
   

  	
  4.7  Litigation

  	
  13

  
	
   

  	
  4.8  Insurance

  	
  13

  
	
   

  	
  4.9  Intellectual
  Property

  	
  13

  
	
   

  	
  4.10  Tax
  Matters

  	
  14

  
	
   

  	
  4.11  Contracts;
  No Defaults

  	
  15

  
	
   

  	
  4.12  Licenses
  and Permits; Compliance with Laws

  	
  16

  
	
   

  	
  4.13  Employee
  Relations

  	
  17

  
	
   

  	
  4.14  Employee
  Benefit Plans

  	
  17

  
	
   

  	
  4.15  Obligations
  to Related Parties

  	
  19

  
	
   

  	
  4.16  Powers
  of Attorney and Suretyships

  	
  19

  
	
   

  	
  4.17  Title
  and Condition of Purchased Assets

  	
  20

  
	
   

  	
  4.18  Real
  Property

  	
  20

  
	
   

  	
  4.19  Environmental
  Matters

  	
  21

  
	
   

  	
  4.20  Absence
  of Certain Changes

  	
  22

  
	
   

  	
  4.21  Customers

  	
  23

  
	
   

  	
  4.22  Vendors

  	
  23

  
	
   

  	
  4.23  Accounts
  Receivable

  	
  23

  
	
   

  	
  4.24  Accounts
  Payable

  	
  23

  
	
   

  	
  4.25  Certain
  Payments

  	
  23

  
	
   

  	
  4.26  No
  Brokers

  	
  23

  

 

i

 

	
   

  	
  4.27  Disclosure

  	
  24

  
	
  ARTICLE V
  REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

  	
  24

  
	
   

  	
  5.1  Organization

  	
  24

  
	
   

  	
  5.2  Authorization

  	
  24

  
	
   

  	
  5.3  No
  Broker

  	
  24

  
	
   

  	
  5.4  Financial Solvency

  	
  25

  
	
   

  	
  5.5  Restricted Stock

  	
  25

  
	
  ARTICLE VI
  PRE-CLOSING COVENANTS OF THE PARTIES

  	
  25

  
	
   

  	
  6.1  Conduct
  of the Business

  	
  25

  
	
   

  	
  6.2  Notices
  of Certain Events

  	
  26

  
	
   

  	
  6.3  Other
  Filings

  	
  26

  
	
   

  	
  6.4  Budget;
  Transition Plan

  	
  26

  
	
   

  	
  6.5  Non-Competition
  Agreements

  	
  27

  
	
   

  	
  6.6  Exclusivity

  	
  27

  
	
  ARTICLE VII
  OTHER COVENANTS OF THE PARTIES

  	
  27

  
	
   

  	
  7.1  Confidential
  Information; Non-Competition

  	
  27

  
	
   

  	
  7.2  Publicity

  	
  28

  
	
   

  	
  7.3  Access
  to Records

  	
  28

  
	
   

  	
  7.4  Commercially
  Reasonable Efforts

  	
  28

  
	
  ARTICLE VIII
  CONDITIONS TO CLOSING

  	
  29

  
	
   

  	
  8.1  Conditions
  to the Obligations of each Party

  	
  29

  
	
   

  	
  8.2  Conditions
  to the Obligations of the Purchaser

  	
  29

  
	
   

  	
  8.3  Conditions
  to the Obligations of the Seller

  	
  29

  
	
  ARTICLE IX
  SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

  	
  30

  
	
   

  	
  9.1  Survival
  of Representations, Warranties and Covenants of Seller and Shareholders

  	
  30

  
	
   

  	
  9.2  Survival
  of Representations, Warranties and Covenants of the Purchaser

  	
  30

  
	
  ARTICLE X
  INDEMNIFICATION

  	
  31

  
	
   

  	
  10.1  Indemnification
  by Seller and Shareholders

  	
  31

  
	
   

  	
  10.2  Indemnification
  by Purchaser

  	
  31

  
	
   

  	
  10.3  Computation
  of Losses

  	
  32

  
	
   

  	
  10.4  Claims
  for Indemnification

  	
  32

  
	
   

  	
  10.5  Right
  of Set-Off

  	
  33

  
	
   

  	
  10.6  Defense
  by the Indemnifying Party

  	
  33

  
	
   

  	
  10.7  Payment
  of Indemnification Obligation

  	
  33

  
	
   

  	
  10.8  Limitations

  	
  34

  
	
  ARTICLE XI
  OTHER AGREEMENTS AND COVENANTS

  	
  34

  
	
   

  	
  11.1  Transfer
  Taxes

  	
  34

  
	
   

  	
  11.2  Required
  Consents

  	
  34

  
	
   

  	
  11.3  Post-Closing
  Access to Records/Cooperation

  	
  35

  
	
   

  	
  11.4  Bulk
  Sale Waiver and Indemnity

  	
  36

  
	
   

  	
  11.5  Use
  of the Seller’s Name

  	
  36

  
	
  ARTICLE XII
  EMPLOYEE MATTERS

  	
  36

  
	
   

  	
  12.1  Offers
  of Employment

  	
  36

  
	
   

  	
  12.2  Liabilities

  	
  37

  
	
   

  	
  12.3  Severance

  	
  37

  
	
   

  	
  12.4  Accrued
  Vacation Time

  	
  37

  

 

ii

 

	
   

  	
  12.5  Employee
  Benefit Plans

  	
  37

  
	
  ARTICLE XIII
  TERMINATION

  	
  37

  
	
   

  	
  13.1  Termination

  	
  37

  
	
   

  	
  13.2  Effect
  of Termination

  	
  38

  
	
  ARTICLE XIV
  MISCELLANEOUS

  	
  38

  
	
   

  	
  14.1  Notices

  	
  38

  
	
   

  	
  14.2  Entire
  Agreement

  	
  39

  
	
   

  	
  14.3  Governing
  Law and Venue

  	
  40

  
	
   

  	
  14.4  Binding
  Effect

  	
  40

  
	
   

  	
  14.5  Counterparts

  	
  40

  
	
   

  	
  14.6  Further
  Assurances

  	
  40

  
	
   

  	
  14.7  Section Headings

  	
  40

  
	
   

  	
  14.8  Gender;
  Tense, Etc

  	
  40

  
	
   

  	
  14.9  Severability

  	
  41

  
	
   

  	
  14.10  No
  Third Party Rights

  	
  41

  
	
   

  	
  14.11  Expenses

  	
  41

  
	
   

  	
  14.12  Amendments;
  No Waivers

  	
  41

  
	
   

  	
  14.13  No
  Strict Construction

  	
  42

  
	
   

  	
  14.14  Guaranty

  	
  42

  

 

iii

 

ASSET PURCHASE
AGREEMENT

 

This ASSET PURCHASE AGREEMENT
(this “Agreement”) dated as of May 17, 2007, is made and entered
into by and among Echo/TMG Holdings, LLC, a Delaware limited liability company
(the “Purchaser”), Mountain Logistics, Inc., a Utah corporation doing
business as Transportation Management Group (the “Seller”), and Walter
Buster Schwab and Ryan Renne (collectively, the “Shareholders”), and
solely with respect to the provisions of Section 14.14 herein, Echo
Global Logistics, Inc., a Delaware corporation (“Echo”).

 

RECITALS

 

A.            WHEREAS, the Seller provides brokerage and third party
logistics services in the commercial trucking market (the “Business”);
and

 

B.            WHEREAS, the Shareholders own, and are the holders of,
all of the issued and outstanding stock of the Seller (collectively, the “Shares”);

 

C.            WHEREAS, Purchaser is a wholly-owned subsidiary of Echo;
and

 

D.            WHEREAS, the Purchaser wishes to purchase from Seller,
and Seller wishes to sell to Purchaser, the Purchased Assets, upon the terms
and subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants
set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

 

ARTICLE I

PURCHASE AND SALE OF ASSETS

 

1.1             Purchase and
Sale of Assets.  Subject to the terms
and conditions set forth in this Agreement and in reliance upon the
representations and warranties herein set forth, at the Closing (as defined
herein), Seller shall sell, transfer, convey, assign and deliver to the
Purchaser, and the Purchaser shall purchase from Seller, all of the Purchased
Assets (as defined herein), free and clear of any and all Liens and
Encumbrances (as defined herein).   The
term “Purchased Assets” shall mean all of the right, title and interest
in, to and under the assets, properties and business of Seller used or held for
use in the conduct of or in connection with the Business, whether tangible or
intangible, real, personal or mixed, and wherever located (but excluding the
Retained Assets), as the same shall exist on the Closing Date, including,
without limitation, the following:

 

(a)             Seller’s rights to
the Leased Real Property (as defined in Section 4.18 below) and all
other rights, if any, under the leases related thereto;

 

(b)             all tangible
assets (“Tangible Personal Property”), including machinery, equipment,
tools, appliances, furniture, office supplies, office equipment, fixtures,
computers 

 

1

 

and printers,
telephone systems, telecopiers and photocopiers, and other tangible personal
property of every kind and description, which are used or useable in, or
relating to, the Business, including, without limitation, those items listed on
Schedule 1.1(b)(A) to this Agreement, and all leases or subleases of any such Tangible Personal
Property as to which Seller is the lessee or sublessee, together with any
options to purchase the underlying property, including, without limitation,
those leases and subleases listed on Schedule 1.1(b)(B) to this
Agreement (the “Personal Property Leases”);

 

(c)             all inventories of
Seller, including all inventories of raw materials, work-in-process, parts,
supplies, samples and finished goods merchandise, wherever located;

 

(d)             all accounts
receivable, notes, contract or other rights to payment for goods sold or
services rendered (the “Accounts Receivable”);

 

(e)             all of Seller’s
right, title and interest in, to or under the Contracts (as defined below),
including but not limited to those Contracts (i) described on Schedule
4.11 or (ii) which relate to the Business and are not required to be
listed on Schedule 4.11 in accordance with the provisions of Section 4.11
below (collectively, the “Assigned Contracts”);

 

(f)              all of Seller’s
right, title and interest in, to or under any and all Intellectual Property (as
defined in Section 4.9 below);

 

(g)             all Permits (as
defined in Section 4.12 below) of Seller used in connection with,
or otherwise related to, the Business to the extent transferable or assignable
to Purchaser;

 

(h)             all Employee
Benefit Plans listed on Schedule 1.1(h) to this Agreement
(collectively, the “Transferred Plans”) and all assets held in
Transferred Plans;

 

(i)              all books of
account, ledgers, forms, records, documents, files, invoices, vendor or
supplier lists, reference materials, price guides, business records (excluding
tax returns, corporate minute books, stock ownership records and similar
records relating to the organization, maintenance and existence of Seller as
corporations), plans and other data relating to the ownership, use, maintenance
or enjoyment of the Purchased Assets or the operation of the Business and that
are owned by Seller (collectively, the “Records”); provided, however,
that the Shareholders may retain copies of and have access to such Records as
necessary to enable the Shareholders to fulfill their Tax filing, regulatory or
statutory obligations after the Closing Date;

 

(j)              all prepaid
expenses, deposits and advance payments of Seller relating to the Business and
all rights of Seller to receive discounts, refunds, reimbursements, rebates,
awards and the like;

 

(k)             Seller’s goodwill
related to the Business;

 

(l)              all of Seller’s
right, title and interest in any action, claim and cause of action or rights of
recovery or set-off of every kind and character related to the Purchased
Assets, including those arising under or pursuant to any warranty, guarantee or
indemnity;

 

2

 

(m)            all deposits held
by Seller with respect to services to be performed or products to be delivered
after the Closing;

 

(n)             any cash and cash
equivalents and marketable securities of Seller, together with Seller’s rights
in and to any and all bank accounts;

 

(o)             all other
properties, assets and rights of every kind, character or description which are
owned or used by Seller in conducting its Business and that are not Retained
Assets; and

 

(p)             all causes of
action and rights of recovery with respect to any of the foregoing.

 

1.2             Retained Assets.  Notwithstanding anything in this Agreement to
the contrary, Seller is retaining ownership and possession of, and Seller is
not selling, transferring, conveying, assigning or delivering to Purchaser any
right, title or interest of Seller in, to or under any of the following assets
(the “Retained Assets”) of Seller: (a) any assets identified on Schedule
1.2(a) to this Agreement; (b) any Employee Benefit Plan that is
not a Transferred Plan; (c) Tax records including tax returns, minute
books and other documents of Seller relating to its maintenance and existence; (d) Tax
refunds, assessments or charges due to Seller; (e) all of Seller’s right,
title and interest in, to or under any Contract or Permit to the extent not
assigned by Seller to Purchaser in accordance with the terms of this Agreement;
(f) all of Seller’s right, title and interest in the policies of insurance
maintained by Seller in connection with, or otherwise related to, the Business
or its employees, together with all benefits, proceeds and premium prepayments
or refunds payable or paid thereunder or with respect thereto, including but
not limited to, proceeds of insurance policies that relate to claims based on
events prior to the Closing; (g) all of Seller’s rights under this
Agreement, including payments to be made to Seller hereunder, and any other
agreement delivered in connection herewith; (h) all claims, rights or
causes of action related to any Retained Asset or Retained Liability; and (i) the
Seller’s bank accounts.

 

1.3             Assumed
Liabilities.  As additional
consideration for the purchase of the Purchased Assets, Purchaser shall, on the
Closing Date, by its execution and delivery of the Assumption Agreement, assume
and agree to pay, discharge, satisfy and perform only the following Liabilities
(as defined in Section 4.6 hereof) of Seller relating to the
Business (collectively, the “Assumed Liabilities”): (a) the
Liabilities of Seller under the Assigned Contracts that by their terms are to
be paid, discharged, satisfied or performed or completed at any time on and
after the Closing Date (provided, however, Purchaser is not
assuming any Liabilities of Seller in respect of a breach of or default under
any assigned Contract that occurs prior to the Closing Date to the extent
Seller knows of such default or breach as of the Closing Date and such default
or breach is disclosed on Schedule 4.11 to this Agreement); (b) Seller’s
Liabilities relating to the Business that are clearly set forth on Schedule
1.3 to this Agreement, but only to the extent of the monetary amount of
such obligations or liabilities so reflected; (c) any Liabilities under or
with respect to any Transferred Plan; (d) any Assumed Taxes; (e) all obligations of Seller under the Leased Real Property
arising and to be performed only on or after the Closing Date; and (f) all
obligations of Seller under the Personal Property Leases arising and to be
performed only on or after the Closing Date.  For purposes of this Agreement, “Assumed
Taxes” shall mean (i) real and personal property Taxes related to the
Purchased Assets for periods (or portions thereof) ending at or before the
Closing Date, to the extent that such Taxes 

 

3

 

are not yet
due and payable at or before the Closing Date and are clearly set forth on Schedule
1.3 to this Agreement, and (ii) withholdings, payroll, employment,
social security, or similar Taxes related to any Hired Employee for periods (or
portions thereof) ending at or before the Closing Date to the extent such Taxes
are not yet due and payable at or before the Closing Date and are clearly set
forth on Schedule 1.3 to this Agreement.

 

1.4             Retained
Liabilities.  All Liabilities other
than the Assumed Liabilities shall remain Liabilities of Seller, and Purchaser
shall not assume or pay any Liabilities (including any future legal actions)
relating to or arising out of the ownership, conduct or operation of the
Business or the Purchased Assets on or prior to the Closing Date or otherwise
arising out of events occurring or conditions existing on or prior to the
Closing Date, other than the Assumed Liabilities (the “Retained Liabilities”).  Except as otherwise expressly provided in Section 1.3
above, the Purchaser does not assume or agree to be liable for any Retained
Liabilities, including without limitation, (i) any Liability (whether
direct or as a result of successor liability, transferee liability, joint and
several liability or contractual liability) for Taxes related to the Retained
Assets, the Business or any Hired Employee (other than the Assumed Taxes) for
periods (or portions thereof) ending on or before the Closing Date, (ii) any
Liability (whether direct or as a result of successor liability, transferee
liability, joint and several liability or contractual liability) for income
Taxes or Taxes that are unrelated to the Purchased Assets, the Business or any
Hired Employee (including without limitation, any sales Taxes payable with
respect to accounts receivable collected by Seller prior to the Closing and not
being acquired by Purchaser hereunder), (iv) any Liability under any
Contract not assumed by the Purchaser under Section 1.3(a) above,
(v) any Liability (including certain notes and accounts payable) listed on
Schedule 1.3 under the heading “Liabilities not to be Assumed,” (vi) any
Liability under or with respect to any Employee Benefit Plan that is not a
Transferred Plan, (vii) any Liability
arising out of any claim, cause of action, proceeding or other litigation
(whether brought against Seller or Purchaser before or after the Closing)
arising, in whole or in part, from the conduct of the business of Seller prior
to or after the Closing, (viii) any costs and expenses incurred by
Seller incident to the negotiation and preparation of this Agreement and its
performance and compliance with the agreements and conditions contained herein,
(ix) any Liability of Seller to pay fees or commissions to any broker,
finder or agent with respect to the transactions contemplated by this Agreement,
(x) any Liability of Seller to its current or former shareholders, (in
their capacities as such as contrasted to their capacity as employees) or to
any other affiliate of Seller, (xi) any Liability of Seller to the extent
relating to any Retained Asset, (xii) any indebtedness for borrowed money or
for the deferred purchase price of property or services (but excluding accounts
payable and accrued expenses incurred in the ordinary course of business), any
obligations evidenced by notes, bonds, debentures or similar instruments, any
capital lease obligations, any guarantees of such indebtedness or obligations,
and any overdrafts or similar obligations, (xiii) any Liability of Seller for
accrued dividends, interest and shareholder and employee bonuses, or (xiv)
Seller’s obligations under this Agreement and any other agreement delivered in
connection herewith.  Seller shall remain
solely responsible for all Retained Liabilities.

 

1.5             Purchase Price.  The total purchase price for the Purchased
Assets (the “Purchase Price”) shall be paid in such amount and at such
times as follows:

 

4

 

(a)           the aggregate amount necessary to
pay-off the lenders listed on Schedule 1.3 under the heading “Liabilities
not to be Assumed” (collectively, the “Pay-Off Amount”), as evidenced by
a pay-off letter from each such lender indicating that upon payment of a
specified amount, such lender shall release its Liens and Encumbrances on, and
agree to execute UCC Termination Statements and such other documents necessary
to release of record its Liens and Encumbrances on, the assets and properties
of Seller, to be paid in cash at Closing by wire transfer of immediately
available funds to each such lender;

 

(b)           an amount equal to $4,250,000 less
the Pay-Off Amount (the “Closing Date Purchase Price”), to be paid in
cash at Closing by wire transfer of immediately available funds to an account
or accounts designated in writing by the Shareholders; plus

 

(c)           an additional amount up to
$6,450,000, to be paid in cash pursuant to Section 1.6
hereof; plus

 

(d)           the issuance of 550,000 shares of
Common Stock of Echo (the “Restricted Stock”) pursuant to Section 1.7
hereof.

 

1.6           Earn-Out.

 

(a)           For the purposes of this Section 1.6,
the following terms shall have the meanings set forth below:

 

“Adjusted
Gross Profit” shall mean (i) all revenues generated by Seller or the
Business, which revenue is determined on an accrual basis in accordance with
generally accepted accounting principles, consistently applied, less (ii) all
Costs of Goods Sold related to such revenues, less (iii) any sales
commissions paid by Seller or the Business with respect to such revenues.

 

“Costs
of Goods Sold” shall mean all purchased transportation costs
(including without limitation, fuel costs, accessorials and surcharges)
incurred by Seller or the Business, determined in accordance with generally
accepted accounting principles, consistently applied; provided, that
commissions, salaries, employee benefits, travel, entertainment or other
expenses incurred in promoting or selling products, general and administrative
expenses, depreciation, amortization, corporate overhead or other inter-company
charges among the Purchaser and its subsidiaries or affiliates, and expenses
incurred in connection with the technology transition contemplated by Section 1.6(g) hereof
shall not be included in Costs of Goods Sold.

 

“Cumulative
Adjusted Gross Profit” shall mean Adjusted Gross Profit generated
from the Closing Date through and including October 31, 2010.

 

“Earn-Out
Period” shall mean the period beginning on the date of the execution
of this Agreement and ending at the earliest to occur of (i) each of the
payments payable by Purchaser to Seller pursuant to Sections 1.6(b), 1.6(c) and
1.6(d) shall have been paid and (ii) May 31, 2012.

 

5

 

(b)           Purchaser shall pay Seller up to
$950,000, in cash, payable upon the achievement by Seller of Adjusted Gross
Profit as follows:

 

(i)           Upon Adjusted Gross Profit equaling
or exceeding $2,600,000 for the twelve (12) month period beginning June 1,
2007 and ending May 31, 2008, Purchaser shall pay Seller an amount equal
to $250,000;

 

(ii)          Upon Adjusted Gross Profit equaling or
exceeding $2,600,000 for the twelve (12) month period beginning June 1,
2008 and ending May 31, 2009, Purchaser shall pay Seller an amount equal
to $350,000; and

 

(iii)         Upon Adjusted Gross Profit equaling or
exceeding $2,600,000 for the twelve (12) month period beginning June 1,
2009 and ending May 31, 2010, Purchaser shall pay Seller an amount equal
to $350,000.

 

(c)           Purchaser shall pay Seller up to
$3,500,000, in cash, payable upon the achievement by Seller of Cumulative
Adjusted Gross Profit as follows:

 

(i)           Upon Cumulative Adjusted Gross Profit
equaling or exceeding $10,000,000 on or prior to May 31, 2010, Purchaser
shall pay Seller an amount equal to $1,000,000;

 

(ii)          Upon Cumulative Adjusted Gross Profit
equaling or exceeding $12,000,000 on or prior to May 31, 2010, Purchaser
shall pay Seller an amount equal to $1,000,000; and

 

(iii)         Upon Cumulative Adjusted Gross Profit
equaling or exceeding $15,000,000 on or prior to October 31, 2010,
Purchaser shall pay Seller an amount equal to $1,500,000.

 

(d)           In addition to the payments, if any,
pursuant to Sections 1.6(b) and 1.6(c), in the event that (i) the
Adjusted Gross Profit equals or exceeds $8,300,000 for the twelve (12) month
period beginning June 1, 2010 and ending May 31, 2011, Purchaser
shall pay Seller an amount equal to $1,000,000, and (ii) the Adjusted
Gross Profit equals or exceeds $8,300,000 for the twelve (12) month period
beginning June 1, 2011 and ending May 31, 2012, Purchaser shall pay
Seller an amount equal to $1,000,000.

 

(e)           Until the end of the Earn-Out Period,
Purchaser shall maintain separate books and records of Seller, including but
not limited to, separate quarterly profit and loss statements and balance
sheets of Seller, so as to make calculation of Adjusted Gross Profit feasible
and verifiable.  Within sixty (60) days
after each anniversary of the Closing Date, Purchaser shall provide to the
Seller a statement of the Adjusted Gross Profit for the applicable period (the “Earn-Out
Statement”).  Purchaser shall provide
to the Seller and his representatives copies of such records and work papers
created in connection with preparation of the Earn-Out Statement which are
reasonably required to support such Earn-Out Statement. Seller and its
representatives shall have the right to inspect Purchaser’s books and records
during business hours upon reasonable prior notice and solely for purposes
reasonably related to the determination of Adjusted Gross Profit.  Upon receipt of each such Earn-Out Statement,
Seller shall be entitled to 

 

6

 

object to the
calculation of Adjusted Gross Profit by delivery to Purchaser of a notice of
objections thereto (a “Notice of Objection”), in reasonable detail
describing the nature of the disagreement asserted.  If Seller fails to deliver a Notice of
Objection to Purchaser within twenty (20) days following receipt of the
Earn-Out Statement, the determination of Adjusted Gross Profit by the Purchaser
as set forth in the Earn-Out Statement shall be final and binding on the
parties hereto.  If Seller and Purchaser
are unable to reconcile their differences in writing within twenty (20) days
after a Notice of Objection is delivered by Seller, the items in dispute shall
be submitted to Crowe Chizek and Company LLP (the “Independent Accountants”).  The determination of Independent Accountants
shall be set forth in writing and shall be conclusive and binding upon the
parties, and the fees, costs and expenses of such Independent Accountants shall
be paid by the non-prevailing party.  The
Independent Accountants shall consider only the items in dispute and shall be
instructed to act within thirty (30) days (or such longer period as the Seller
and Purchaser may agree) to resolve all items in dispute.  If Seller in its discretion gives written
notification of its acceptance of an Earn-Out Statement prior to the end of
such 30-day period, such Earn-Out Statement shall thereupon become binding,
final and conclusive upon all the parties hereto.

 

(f)              Purchaser shall
pay Seller the amount shown as due on the Earn-Out Statement within fifteen
(15) days of a final determination that an Adjusted Gross Profit target has
been achieved pursuant to Section 1.6(b), 1.6(c) or 1.6(d) by
wire transfer of immediately available funds to an account or accounts
designated in writing by the Seller.

 

(g)             Notwithstanding
anything in this Agreement to the contrary, except as expressly set forth in
this Section 1.6, or as required by the Purchaser’s implied
contractual covenant of good faith and fair dealing, this Agreement shall
impose no restrictions on the operation of the Business or Seller by the
Purchaser following the Closing or on the operations, business or activities of
the Purchaser following the Closing; provided, however, that in
the event that Purchaser acts in an arbitrary or commercially unreasonable
manner in the conduct or operation of the Business that is reasonably likely to
materially interfere with the achievement by the Companies of the earn-out
targets set forth in Sections 1.6(b), 1.6(c) and 1.6(d),
Seller and Purchaser shall use good faith efforts to make an equitable
adjustment to the applicable earn-out targets to compensate for the adverse
effect of such action(s) on the achievement by Seller of such earn-out
targets.  In the event Purchaser and
Seller cannot agree on such equitable adjustment within thirty (30) days, the
Independent Accountants will receive the items or amounts in dispute and
compute such adjustment.  Such
determination shall be made in writing within thirty (30) days after the date
on which the Independent Accountants begin their review and shall be conclusive
and binding on the parties.  The fees,
costs and expenses of the Independent Accountants shall be paid by the party
whose calculation of the equitable adjustment is further from the Independent
Accountants’ calculation.  Without
limiting the foregoing, Seller acknowledges and agrees that after the Closing, (i) Purchaser
may operate the Business under the name “Echo Global,” (ii) all financial
statements, billing matters, payment of accounts payables, collections of
accounts receivables, bank accounts, credit facilities and other financial
operations or activities of the Business will be consolidated with the
Purchaser, (iii) Seller will transition to using the Purchaser’s
operational and financial technology, and in connection with such transition,
Purchaser shall use its commercially reasonable efforts to insure that no
material deterioration in the timeliness and accuracy of order processing, job
tracking, billing, collections or the availability of budgeted operating
capital results from such transition, 

 

7

 

and (iv) the Purchaser
may, in its sole discretion, dissolve or terminate Seller and operate the
Business as a division of the Purchaser.

 

1.7           Restricted Stock; Escrow.  In connection with the issuance of the
Restricted Stock to Seller, Echo and Seller shall enter into a Restricted Stock
Agreement in the form attached hereto as Exhibit A (the “Restricted
Stock Agreement”).  To secure the
obligations of Seller and the Shareholders under Article X hereof,
the Restricted Stock shall be issued to Seller and the stock certificates
evidencing such Restricted Stock, together with the Restricted Stock Agreement,
the Voting Agreement Joinder and the Co-Sale Agreement Joinder (collectively,
the “Escrow Property”), shall be held by Purchaser in escrow for a
period of eighteen (18) months after the Closing Date.  The Escrow Property shall be released by
Purchaser to Seller, less an amount (based on the fair market value of the
Restricted Stock as of the date of this Agreement) equal to any Losses incurred
or suffered by Purchaser for which Purchaser is entitled to indemnification
under Article X.  The parties acknowledge and agree that the fair
market value of the Restricted Stock as of the date of this Agreement is equal
to $1.28 per share.  Purchaser shall
release to Seller the Escrow Property (or the portion thereof as shall be due
and payable to Seller) upon the later of (i) the date which is eighteen
(18) months after the Closing Date and (ii) the final resolution of any
claim for indemnification by Purchaser under Article X which had
been made by Purchaser prior to the date which is eighteen (18) months after
the Closing Date.  Any investment
earnings (including cash or stock dividends) on the Escrow Property shall be
added to and become a part of the Escrow Property.  All income earned on property (whether or not
distributed) shall be taxable to Seller, and Purchaser shall report to the
Internal Revenue Service, as of each calendar year-end, all income earned from
the investment of any amounts held in the Escrow Property against Seller.

 

1.8           Allocation of Purchase Price.  The Purchase Price (and all relevant Assumed Liabilities and other
relevant items) shall be allocated among the Purchased Assets and the
Restrictive Covenants set forth in Section 7.1 below (the “Purchase
Price Allocation”) in accordance with Schedule 1.8 to this
Agreement.  The Purchase Price Allocation
shall be prepared in accordance with the applicable provisions of the Internal
Revenue Code of 1986, as amended (the “Code”), and the methodology set
forth on Schedule 1.8 to this Agreement. 
The parties shall make consistent use of the allocation, fair market
value and useful lives specified on Schedule 1.8 to this Agreement for
all Tax reporting purposes and agree to report the transactions in accordance
with the Purchase Price Allocation.

 

ARTICLE II

CLOSING

 

2.1           Time and Place.  The closing of the transactions contemplated
by this Agreement (the “Closing”) shall take place at the offices of
Winston & Strawn LLP, 35 West Wacker Drive, Chicago, Illinois at 10:00 a.m.
local time on or before May 31, 2007, or at such other time and place as
Purchaser and Seller mutually agree (the “Closing Date”).

 

2.2           Transactions at the Closing.  At the Closing, the parties shall take the
following actions, which shall be deemed to occur simultaneously at the
Closing:

 

(a)           Purchaser shall take the following
actions:

 

8

 

(i)            deliver to Seller the Closing Date Purchase Price by
means of wire transfer of immediately available funds into one or more bank
accounts designated in writing by the Seller to Purchaser prior to the Closing
Date; and

 

(ii)           deliver to Seller the following:

 

(A)          an Assumption Agreement, in substantially the form attached
hereto as Exhibit B, duly executed by Purchaser and reflecting the
assumption of the Assumed Liabilities;

 

(B)           a copy of the resolutions duly adopted by the Board of
Directors of Echo, as the sole member of Purchaser, certified by the Secretary
thereof, authorizing the execution, delivery and performance of this Agreement
by Purchaser and the issuance and delivery of the Restricted Stock by Echo;

 

(C)           a certificate of an officer of the Purchaser as to the
incumbency of the officers authorized to execute this Agreement on behalf of
the Purchaser;

 

(D)          a certificate from the Secretary of State of the State of
Delaware as to the good standing of the Purchaser;

 

(E)           the certificate required to be delivered pursuant to Section 8.3(a);

 

(F)           an employment agreement between the Purchaser and Walter
Buster Schwab, in substantially the form attached hereto as Exhibit C
(the “Schwab Employment Agreement”);

 

(G)           an employment agreement between the Purchaser and Ryan
Renne, in substantially the form attached hereto as Exhibit D (the “Renne
Employment Agreement” and together with the Schwab Employment Agreement,
the “Employment Agreements”); and

 

(H)          such other documents or certificates as are deemed reasonably
necessary by Seller and its counsel.

 

(b)           Seller shall deliver to Purchaser the following:

 

(i)            a Bill of Sale and Assignment Agreement, in substantially
the form attached hereto as Exhibit E, duly executed by Seller;

 

(ii)           a copy of the resolutions duly adopted by Seller,
certified by the Secretary thereof, authorizing the execution, delivery and
performance of this Agreement;

 

(iii)          a certificate of an officer of Seller as to the incumbency
of its officers authorized to execute this Agreement on behalf of Seller;

 

(iv)          a certificate from the Secretary of State of the State of
Utah as to the good standing of Seller;

 

9

 

(v)           the certificate required to be delivered pursuant to Section 8.2(a);

 

(vi)          each of the consents required to be obtained from third
parties as identified under Section 4.4 of this Agreement;

 

(vii)         each of the Employment Agreements;

 

(viii)        a joinder or other instrument of
accession to the Voting Agreement of Echo (the “Voting Agreement Joinder”);

 

(ix)           a joinder or other instrument of accession to the Co-Sale
Agreement of Echo (the “Co-Sale Agreement Joinder”);

 

(x)            copies of the non-competition agreements required to be
delivered pursuant to Section 6.5;

 

(xi)           an opinion of Hitchcock, Bowman & Schachter,
counsel for the Seller and the Shareholders, dated the Closing Date and
substantially in the form attached hereto as Exhibit F;

 

(xii)          A certificate, duly completed and executed by Seller
pursuant to Section 1.1445-2(b)(2) of the Treasury Regulations,
certifying that Seller is not a “foreign person” within the meaning of Section 1445
of the Code; and

 

(xiii)         such other documents or certificates as
are deemed reasonably necessary by the Purchaser and its counsel.

 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE SHAREHOLDERS

 

Each of the Shareholders hereby, severally and not
jointly, represents and warrants to the Purchaser as follows:

 

3.1             Title.  Such Shareholder has good and marketable
title to the Shares owned by such Shareholder. 
Such Shares are free and clear of any and all covenants, conditions,
restrictions, voting trust arrangements, liens, charges, encumbrances, options
and adverse claims or rights whatsoever (“Liens and Encumbrances”).

 

3.2             Enforceability.  This Agreement and all other agreements and
obligations entered into and undertaken in connection with the transactions
contemplated hereby to which such Shareholder is a party constitute the valid
and legally binding obligations of such Shareholder, enforceable against him in
accordance with their respective terms (except to the extent that the
enforceability of obligations and the availability of certain remedies
thereunder are subject to and may be limited by general principles of equity or
by bankruptcy, insolvency, reorganization, arrangement, fraudulent transfer,
moratorium and other laws relating to or affecting creditors’ rights
generally).  The execution, delivery and
performance by such Shareholder of this Agreement and the agreements provided
for herein, and the consummation by such Shareholder of the transactions
contemplated hereby and thereby, will not, with or without the giving of 

 

10

 

notice or the passage of
time or both, (a) violate the provisions of any law, rule or
regulation applicable to such Shareholder, (b) violate any judgment,
decree, order or award of any court, governmental body or arbitrator applicable
to such Shareholder, or (c) conflict with or result in the breach or
termination of any term or provision of, or constitute a default under, or
cause any acceleration under, or cause the creation of any lien, charge or
encumbrance upon the properties or assets of such Shareholder pursuant to, any
indenture, mortgage, deed of trust or other agreement or instrument to which
such Shareholder is a party or by which he is or may be bound.

 

3.3             No Brokers.  No broker, finder, agent or similar
intermediary has acted for or on behalf of such Shareholder in connection with
this Agreement or the transactions contemplated hereby, and no other broker,
finder, agent or similar intermediary is entitled to any broker’s, finder’s or
similar fee or other commission in connection therewith based on any agreement,
arrangement or understanding with such Shareholder.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Each of Seller and the Shareholders, jointly and
severally, hereby represents and warrants to the Purchaser as follows:

 

4.1             Organization.  Seller is a corporation duly organized,
validly existing and in good standing under the corporation laws of the State
of Utah, and has all requisite power and authority to own its properties, to
carry on its business as now being conducted, to execute and deliver this
Agreement and the agreements contemplated herein, and to consummate the
transactions contemplated hereby and thereby. 
Seller is duly qualified to do business and in good standing in all
jurisdictions in which its ownership of property or the character of its
business requires such qualification, except where the failure to be so
qualified would not have a material adverse effect on Seller or its business,
properties, assets or condition.  A list
of the jurisdictions where Seller is so qualified is set forth on Schedule
4.1.

 

4.2             No Subsidiaries.   Except as set forth on Schedule 4.2,
Seller has no subsidiaries and has not made any advance to, or investment in,
any securities of, or acquired any other equity interest in, any business
entity, enterprise or organization, public or private.

 

4.3             Capitalization.  The Shares constitute all of the issued and
outstanding shares of capital stock of Seller and are owned and held of record
by the Shareholders, free and clear of all Liens or Encumbrances.  All of the Shares have been, and on the
Closing Date will be, duly and validly issued and are, or will be on such date,
fully paid.  There are not, and on the
Closing Date there will not be, outstanding (i) any options, warrants or
other rights to purchase from Seller any securities of Seller, (ii) any
securities convertible into or exchangeable for securities of Seller, or (iii) any
other commitments of any kind for the issuance of securities of Seller or
options, warrants or other securities of Seller.  There are no outstanding or authorized stock
appreciation, phantom stock or similar rights with respect to Seller.  There are no voting trusts, proxies or other
agreements or understandings with respect to the voting of the capital stock or
equity securities of Seller.  Except as
set forth on Schedule 4.3, as of the Closing, Seller does 

 

11

 

not have any outstanding
indebtedness to any lender for borrowed money.

 

4.4             Authorization; Consents.  The execution and delivery by Seller of this
Agreement and the agreements provided for herein, and the consummation by
Seller of all transactions contemplated hereunder and thereunder, have been
duly authorized by all requisite corporate or limited liability company action,
as applicable.  This Agreement has been
duly executed by Seller.  This Agreement
and all other agreements and obligations entered into and undertaken in
connection with the transactions contemplated hereby to which Seller is a party
constitute the valid and legally binding obligations of Seller, enforceable
against Seller in accordance with their respective terms (except to the extent
that the enforceability of obligations and the availability of certain remedies
thereunder are subject to and may be limited by general principles of equity or
by bankruptcy, insolvency, reorganization, arrangement, fraudulent transfer,
moratorium and other laws relating to or affecting creditors’ rights
generally).  The execution, delivery and
performance by Seller of this Agreement and the agreements provided for herein,
and the consummation by Seller of the transactions contemplated hereby and
thereby, will not, with or without the giving of notice or the passage of time
or both, (a) violate the provisions of any law, rule or regulation
applicable to Seller, (b) violate the provisions of the Articles of
Incorporation or Bylaws of Seller, as applicable, (c) violate any
judgment, decree, order or award of any court, governmental body or arbitrator
applicable to Seller, or (d) conflict with or result in the breach or
termination of any term or provision of, or constitute a default under, or
cause any acceleration under, or cause the creation of any lien, charge or
encumbrance upon the properties or assets of Seller pursuant to, any indenture,
mortgage, deed of trust or other agreement or instrument to which Seller is a
party or by which Seller is or may be bound, except as set forth on Schedule
4.4.  Except as set forth on Schedule 4.4, no filing, declaration or registration with, or
consent, approval, order or authorization of, any governmental authority or
other person is required to be made or obtained by Seller or any Shareholder in
connection with the consummation by Seller or any Shareholder of the
transactions contemplated by this Agreement or by any other agreement delivered
in connection herewith by Seller or any Shareholder.

 

4.5             Financial Statements.  Seller has delivered to Purchaser the
unaudited financial statements of Seller as of December 31, 2006 and December 31,
2005, and the related statements of income and cash flow for the fiscal years
then ended (collectively, the “Year End Financial Statements”) and the
unaudited balance sheet of Seller (the “Current Balance Sheet”) as of April 30,
2007 (the “Current Balance Sheet Date”) and the related statement of
income and cash flow of Seller for the two-month period then ended
(collectively, the “Current Financial Statements”).  The Year End Financial Statements and the
Current Financial Statements are herein collectively referred to as the “Financial
Statements.”  The Financial Statements
have been prepared in accordance with GAAP applied consistent with past
practices, are complete and correct in all material respects and present fairly
as of their respective dates the financial condition, retained earnings, cash
flows and the results of operations of the Companies’ business for the periods
indicated, except, in the case of the Current Financial Statements, for
year-end adjustments and the failure to include footnotes and approvals of
third parties that are required in connection with the consummation by the
Companies of the transactions contemplated by this Agreement.

 

4.6             Absence of Undisclosed
Liabilities.  Seller has no debts,
liabilities or obligations 

 

12

 

of any nature, whether accrued,
secured, unsecured, absolute, contingent, direct, indirect, perfected,
inchoate, unliquidated or otherwise (collectively, “Liabilities”), except and to the extent (i) clearly and
accurately reflected and accrued for or fully reserved against in the Current
Balance Sheet, (ii) incurred in the ordinary course of business since December 31,
2006 (but not obligations or liabilities that result from, arise out of or are
attributable to, any breach of such Contract if such breach occurred prior to
the Closing and Seller is aware of such breach and have disclosed such breach
on Schedule 4.4), and (iii) set forth on Schedule 4.6.

 

4.7             Litigation.  Except as set forth on Schedule 4.7, (a) there
is no action, suit, claim, proceeding or investigation to which Seller is a
party pending or, to the Seller’s Knowledge, threatened before any court or
governmental agency, authority, body or arbitrator, (b) Seller has not
been permanently or temporarily enjoined by any order, writ, injunction,
judgment or decree of any court or governmental agency, authority or body from
engaging in or continuing any conduct or practice in connection with the
Business or the assets or properties of Seller, and (c) there is not in
existence on the date hereof any order, writ, injunction, judgment or decree of
any court, tribunal or agency relating in any way to Seller or enjoining or
requiring Seller to take any action of any kind with respect to the Business or
its assets or properties.  There is no action,
suit, claim, proceeding or investigation by Seller currently pending or that
Seller intends to initiate relating in any way to Seller or the Business.  For purposes of this Agreement, “Knowledge”
or words of similar import shall mean the facts or other information that are
actually known by Seller or the Shareholders and that Seller or any Shareholder
should be reasonably expected to know after due inquiry as of the date of this
Agreement.

 

4.8             Insurance.  Schedule 4.8 sets forth a list of all
insurance policies maintained by Seller, specifying the type of coverage, the
amount of coverage, the insurer and the expiration date of each such policy
(collectively, the “Insurance Policies”) and all claims under such
Insurance Policies since January 1, 2006 in excess of $10,000.  Each Insurance Policy is in good standing,
valid and subsisting, and in full force and effect in accordance with its terms
and, collectively, such Insurance Policies are reasonably adequate and
customary for the conduct of the Business. 
All premiums due on the Insurance Policies or renewals thereof have been
paid and there is no default under any of the Insurance Policies.  Seller not has received any notice or other
communication from any issuer of the Insurance Policies since January 1,
2006 validly canceling or amending any of the Insurance Policies, increasing
any deductibles or retained amounts thereunder, and, to the Seller’s Knowledge,
no such cancellation, amendment or increase of deductibles, retainages or
premiums is threatened.

 

4.9             Intellectual Property.  Schedule
4.9 sets forth an accurate and complete list of all Intellectual
Property.  Except as otherwise disclosed
in Schedule 4.9:  (i) Seller
is the owner of all right, title and interest in and to its Intellectual
Property (excluding any Intellectual Property which Seller licenses or
otherwise has rights to use) free and clear of all Liens and Encumbrances; (ii) Seller
has the right and authority to use its Intellectual Property in connection with
the conduct of its business in the manner presently conducted; and (iii) Seller
has not received written notice of a pleading or threatened claim, interference
action or other judicial or adversarial proceeding against Seller that any of
Seller’s operations, activities, products, services or publications infringes
any patent, trademark, trade name, copyright, trade secret or other property
right of a third party, or that it is illegally or otherwise using the trade
secrets, formulae or property rights of others. 
The term “Intellectual Property” means all 

 

13

 

intellectual property owned or licensed by,
or used in the business of, Seller, including (i) all registered and
unregistered trade names, trade marks, logos, service marks and trade mark and
service mark applications, together with all goodwill associated with any of
the foregoing and all registrations and applications therefore, (ii) all
patents, patent applications and inventions and discoveries that may be
patentable, (iii) all registered and unregistered copyrights in both
published and unpublished works and applications for registration thereof, (iv) all
know-how, trade secrets, or confidential or proprietary information, customer
and supplier lists and information, software (other than commercially
available, off-the-shelf software), process technology, technical information,
drawings and plans, financial, marketing and business data, pricing and cost
information, and business and marketing plans, and (v) all rights in
internet web sites or protocol addresses, internet domain names and
registration rights, uniform resource locators, and related security passwords
or codes.

 

4.10           Tax Matters. 
Seller has complied in all material respects with all laws relating to
Taxes and has timely filed or caused to be timely filed all returns,
statements, schedules, reports, and other information required to be filed with
any governmental authority or third party (collectively, “Tax Returns”) with respect
to any net income, capital gains, gross income, gross receipts, sales, use,
transfer, ad valorem, franchise, profits, license, capital, withholding,
payroll, estimated, employment, excise, goods and services, severance, stamp,
occupation, premium, property, social security, environmental (including Code
section 59A), alternative or add-on, value added, registration, windfall
profits or other tax or customs duties or amount imposed by any governmental or
taxing authority, or any interest, penalties, additions to tax or other
additional amounts incurred or accrued under applicable tax law or properly
assessed or charged by any governmental or taxing authority (collectively, “Taxes”).  All such
Tax Returns were true, correct and complete in all material respects.  All Taxes of Seller due and payable (whether
or not shown as due on a Tax return) have been paid.  There are no unpaid assessments for
additional Taxes of Seller for any period, and to the Knowledge of Seller,
there is no basis therefor.  There are no
liens for Taxes on any assets of Seller, other than liens for Taxes not yet due
and payable.  Seller has (i) withheld
all required amounts from its employees, agents, contractors, nonresidents, and
other persons and remitted such amounts to the proper agencies in accordance
with all applicable laws; (ii) paid all employer contributions and
premiums; and (iii) filed all federal, state, local and foreign returns
and reports with respect to employee income Tax withholding, social security
Taxes and premiums, and unemployment Taxes and premiums, all in compliance with
the Code (and other applicable federal, state, local or foreign laws) as in
effect for the applicable year.  No
federal, state, local or foreign Tax audits or other administrative
proceedings, discussions or court proceedings are presently in progress or
pending, or to the Knowledge of Seller, threatened with regard to any Taxes or
Tax Returns of Seller.  Seller has duly
elected to be treated as an S corporation pursuant to Code section 1362(a) and
the laws of each State in which Seller conducts business, effective as of its
date of incorporation.  This election is
currently effective.   No event has
occurred (or fact has existed) that would cause Seller not to initially qualify
as an S corporation under Code section 1361(a) or which would terminate
Seller’s S corporation status (other than the transaction contemplated by this
Agreement).  No taxing authority has
challenged the effectiveness of this election. 
Seller has not incurred (and has no potential for) any liability for
income Taxes (including, without limitation, under Code section 1374) on the
sale or other disposition of its assets (whether actual or deemed).  There is no contract, agreement, plan or
arrangement covering any employee or former employee or independent contractor
or former independent contractor of Seller that, 

 

14

 

individually or
collectively, could give rise to a payment by Purchaser (or the provision by
Seller of any other benefit such as accelerated vesting) that would not be
deductible by reason of Code section 280G or subject to an excise tax under
Code section 4999.  Seller has no
indemnity obligation for any excise taxes imposed under Code section 4999.

 

4.11           Contracts; No Defaults.

 

(a)             Schedule 4.11 contains a
true, complete and correct list of the following contracts and agreements,
whether written or oral (collectively, the “Contracts”):

 

(i)            all agreements relating to the acquisition or divestiture
of capital stock or other equity securities, assets or business of any person
or entity;

 

(ii)           all agreements for the employment of any officer,
individual employee or other person on a full-time or consulting basis (other
than contracts for at will employment that are not in writing);

 

(iii)          all loan agreements, promissory notes, indentures, mortgages
and guarantees to which Seller is a party or by which Seller is bound;

 

(iv)          all pledges, conditional sale or title retention
agreements, security agreements (including but not limited to maintenance
agreements), equipment leases and other equipment obligations, other personal
property leases and lease purchase agreements to which Seller is a party or by
which Seller or any of its property is bound, and all leases of personal
property, whether operating, capital or otherwise, under which Seller is lessor
or lessee;

 

(v)           all contracts, agreements, commitments, purchase orders or
other understandings or arrangements to which Seller is a party or by which
Seller or any of its property is bound which either (1) involve payments
or receipts by Seller of more than $25,000 in the case of any single contract,
agreement, commitment, understanding or arrangement under which full
performance (including payment) has not been rendered by all parties thereto,
other than for purchases or sales of inventory in the ordinary course of Seller’s
business, or (2) may adversely effect the condition (financial or
otherwise) or the properties, assets, business or prospects of Seller;

 

(vi)          all collective bargaining agreements, employment and
consulting agreements, executive compensation plans, bonus plans, deferred
compensation agreements, pension plans, retirement plans, employee unit option
or unit purchase plans and group life, health and accident insurance and other
employee benefit plans, agreements, arrangements or commitments to which Seller
is a party;

 

(vii)         all agency, distributor, sales representative, franchise or
similar agreements to which Seller is a party;

 

(viii)        all contracts, agreements or other
understandings or arrangements between Seller and any of its affiliates (as
such term is defined in the Securities Act of 1933, as amended, and the
regulations promulgated thereunder);

 

15

 

(ix)           all Leases to which Seller is a party; and

 

(x)            all agreements or contracts entered into outside the
ordinary course of Seller’s business and any other material agreements or
contracts entered into by Seller.

 

(b)             Except as set forth on Schedule
4.11:

 

(i)            each Contract is a valid and binding agreement of Seller,
enforceable against Seller in accordance with its terms (except to the extent
that the enforceability of obligations and the availability of certain remedies
thereunder are subject to and may be limited by general principles of equity or
by bankruptcy, insolvency, reorganization, arrangement, fraudulent transfer,
moratorium and other laws relating to or affecting creditors’ rights
generally);

 

(ii)           Seller has fulfilled all obligations required pursuant to
the Contracts to have been performed by Seller on its part prior to the date
hereof;

 

(iii)          Seller is not in breach of or default under any Contract,
and no event has occurred which with the passage of time or giving of notice or
both would constitute such a breach or default, result in a loss of rights or
result in the creation of any lien, charge or encumbrance thereunder or
pursuant thereto;

 

(iv)          to the Knowledge of Seller, no other party to any Contract
has breached in any material respect any provision or is in material default
under any Contract; and

 

(v)           no consent, authorization or approval is required under
any Contract in connection with the consummation of the transactions
contemplated by this Agreement.

 

(c)           Except as set forth on Schedule
4.4 or Schedule 4.11, the continuation, validity and effectiveness
of each Contract will not be affected by the consummation of the transactions
contemplated hereunder.  Except as set
forth on Schedule 4.11, there are no pending renegotiations of any of
the Contracts and Seller not has received written notice from, and Seller has no
Knowledge that a party to any Contract intends to, terminate, cancel or
materially change the terms of, any such Contract.

 

(d)           Neither the execution and delivery of
this Agreement nor the consummation of the transactions contemplated hereby
will result in any payment (including, without limitation, severance,
unemployment compensation, golden parachute, bonus or otherwise) to any
stockholder, director, manager, member or employee of Seller from Seller
becoming due, materially increasing or accelerating.

 

4.12         Licenses
and Permits; Compliance with Laws.  Schedule
4.12 sets forth a complete and correct list of all licenses, franchises,
permits, operating authorities, state operating licenses or registrations and
other interstate, intrastate, national or international regulatory licenses and
other governmental authorizations held by Seller as of the date hereof relating
to the Business (collectively, “Permits”).  Such Permits (or, if renewed after the date
hereof, such renewals) are valid and in effect and Seller has not received any
written notice that any governmental authority intends to cancel, terminate or
not renew any of the same.  Seller 

 

16

 

holds and is in compliance
in all material respects with all Permits necessary for the ownership and use
of its assets or properties and the operation of the Business as presently
conducted.  No such Permit is subject to
termination or modification as a result of the transactions contemplated hereby
and except as set forth on Schedule 4.12, no filings, consents or
approvals are necessary to assign or transfer any of such Permits to Purchaser
and all of such Permits will be in full force and effect following consummation
of the transactions contemplated hereby. 
The Business as conducted on the date hereof is in compliance in all
material respects with all applicable federal, state, local and all other
applicable laws, regulations, ordinances or orders.  Seller has not received any notice or other
communication from any governmental authority, agency or body or any other
person regarding any actual or alleged violation of or failure to comply with
any term or requirement of applicable law.

 

4.13           Employee Relations.

 

(a)             Seller is in compliance in all
material respects with all federal, state and municipal laws with respect to
employment and employment practices, terms and conditions of employment, and
wages and hours, and is not engaged in any unfair labor practice, and there are
no arrears in the payment of wages or social security taxes, except where the
failure to so comply or where such practice or such arrears would not have a
material adverse effect on Seller or its business, properties, assets or
condition.  None of the employees of
Seller are represented by a union and there have been no union organizing
efforts conducted at Seller and none are now being conducted.  Seller has not had at any time, nor, to the
Seller’s Knowledge, is there now threatened, any strike or other labor trouble.

 

(b)             Schedule 4.13 sets forth a
true and complete list, as of May 1, 2007, of the names, base
compensation, and any bonus, commission or other compensation arrangements,
whether oral or written, of all of the employees and independent contractors of
Seller who perform services for or in connection with Seller’s business.  Except as listed on Schedule 4.13,
Seller has not entered into any agreements or arrangements with any officers,
directors, and employees of Seller that have not been fully performed as of the
Closing Date.  To Seller’s Knowledge,
each employee and independent contractor of Seller is currently deploying all
of his or her business time to the conduct of the business of Seller, and no
employee or independent contractor of Seller has any intention to terminate his
or her employment or relationship with Seller or to change his or her work
schedule in any material respect, either as a result of the transactions
contemplated by this Agreement or otherwise.

 

4.14           Employee Benefit Plans.

 

(a)             Schedule 4.14  sets
forth a true and complete list as of the date hereof of each “employee pension
benefit plan” (as such term is defined in Section 3(2) of ERISA), “employee
welfare benefit plan” (as such term is defined in Section 3(1) of
ERISA), material personnel or payroll policy (including vacation time, holiday
pay, service awards, moving expense reimbursement programs and sick leave) or
material fringe benefit, severance agreement or plan or any medical, hospital,
dental, life or disability plan, excess benefit plan, bonus, stock option,
stock purchase, or other incentive plan (including any equity or equity-based
plan), top hat plan or deferred compensation plan, salary reduction agreement,
change-of-control agreement, employment agreement, consulting agreement,
collective bargaining agreement, indemnification 

 

17

 

agreement, or retainer
agreement, or any other benefit plan, policy, program, arrangement, agreement
or contract, whether or not written, with respect to any employee, former
employee, director, independent contractor, or any beneficiary or dependent
thereof (including, without limitation, any “employee benefit plan”, as defined
in Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”)), maintained, or contributed to, by Seller or
to which Seller may have any liability, including contingent liability by
reason of being (or having been) a part of a controlled group of companies
under Code Section 414(b), (c), (m) or (o) (each other company
hereinafter referred to as an “ERISA Affiliate”) (the “Employee
Benefit Plans”).

 

(b)             With respect to each Employee
Benefit Plan, Seller has heretofore delivered or made available to Purchaser a
true, correct and complete copy of: (A) each writing constituting a part
of such Employee Benefit Plan, including without limitation all plan documents,
trust agreements, and insurance contracts and other funding vehicles; (B) the
most recent Annual Report (Form 5500 Series) and accompanying schedule, if
any; (C) the current summary plan description and any material
modifications thereto, if any (in each case, whether or not required to be
furnished under ERISA); (D) the most recent annual financial report,
trustee report, audit report, or actuarial report, if any; and (E) the
most recent determination letter from the Internal Revenue Service (“IRS”),
if any.  Except as specifically provided
in the foregoing documents delivered to Purchaser, there are no amendments to
any Employee Benefit Plan that have been adopted or approved nor has Seller
undertaken to make any such amendments or to adopt or approve any new Employee
Benefit Plan.

 

(c)             No Employee Benefit Plan is a “multiemployer
pension plan” (as such term is defined in Section 3(37) of ERISA) (a “Multiemployer
Plan”), a plan that has two or more contributing sponsors at least two of
whom are not under common control, within the meaning of Section 4063 of
ERISA (a “Multiple Employer Plan”) or a plan that is subject to Title IV
of ERISA or the funding provision of Section 412 of the Code.

 

(d)             Neither Seller nor any ERISA
Affiliate has (a) at any time contributed to or been obligated to
contribute to any “multiemployer plan” (as such term is defined in Section 3(37)
of ERISA) or a “multiple employer plan” (as such term is defined in Section 4063
of ERISA), or (b) incurred any withdrawal liability to a multiemployer
plan as a result of a complete or partial withdrawal from such multiemployer
plan that has not been satisfied in full.

 

(e)             Each of the Employee Benefit Plans intended
to be “qualified” within the meaning of Section 401(a) of the Code
has received a favorable determination letter as to such qualification from the
IRS, and no event has occurred, either by reason of any action or failure to
act, which would cause the loss of any such qualification.

 

(f)              No Employee Benefit Plan provides
benefits, including, without limitation, death or medical benefits (whether or
not insured), with respect to current or former employees of Seller beyond
their retirement or other termination of service, other than (1) coverage
mandated by applicable law, (2) death benefits or retirement benefits
under any “employee pension plan” (as such term is defined in Section 3(2) of
ERISA), or (3) deferred compensation benefits accrued as liabilities on
the books of Seller.

 

18

 

(g)             Each of the Employee Benefit Plans
has been operated and administered in all material respects in accordance with
applicable laws and administrative rules and regulations of any
governmental entity, including, but not limited to, ERISA and the Code.  All contributions or other amounts payable by
Seller as of the Closing with respect to each Employee Benefit Plan in respect
of current or prior plan years will have been paid or accrued by such time in
accordance with GAAP.

 

(h)             With respect to each Employee
Benefit Plan, there are no claims or other proceedings pending or threatened
with respect to the assets thereof (other than routine claims for benefits),
and which could reasonably give rise to any liability, claim or other
proceeding against any Employee Benefit Plan, any fiduciary or plan
administrator or other person dealing with any Employee Benefit Plan or the
assets of any such Employee Benefit Plan.

 

(i)              Each Employee Benefit Plan that is
a Transferred Plan may be amended, terminated, modified or otherwise revised on
and after the Closing, without further material liability to Purchaser
(excluding ordinary administrative expenses and routine claims for benefit
plans).

 

(j)              The consummation of the
transactions contemplated by this Agreement will not (i) entitle any
current or former employee of Seller to severance pay, unemployment
compensation or any other payment except as set forth on Schedule 4.14, (ii) accelerate
the time of payment or vesting or increase the amount of compensation due to
any such employee or former employee, except as expressly provided in this
Agreement, or (iii) result in any prohibited transaction described in Section 406
of ERISA or Section 4975 of the Code for which an exemption is not
available.

 

4.15           Obligations to Related Parties.  Except as set forth on Schedule 4.15, (i) Seller
is not indebted, directly or indirectly, to any person who is a shareholder,
member, manager, director, officer or employee of Seller or any affiliate of
any such person in any amount whatsoever other than for salaries and bonuses
set forth on Schedule 4.15 for services rendered or reimbursable
business expenses, all of which have been reflected on the Current Financial
Statements, and no such shareholder, member, manager, director, officer or employee
is indebted to Seller, except for advances made to employees of Seller in the
ordinary course of business to meet reimbursable business expenses anticipated
to be incurred by such obligor, (ii) none of the shareholders, members,
managers, directors, officers or employees of Seller, or any members of their
immediate families, are indebted to Seller or have any direct or indirect
ownership interest in any firm or corporation with which Seller is affiliated
or with which Seller has a business relationship, or any firm or corporation
which competes with Seller, except that managers, members, officers, directors
and/or stockholders of Seller may own stock in publicly traded companies which
may compete with Seller, and (iii) no shareholder, member, manager,
director, officer or employee of Seller, or any member of their immediate
families, is, directly or indirectly, interested in any Contract with Seller
(other than employment agreements).

 

4.16           Powers of Attorney and
Suretyships.  Except as set forth on Schedule
4.16, Seller does not have any powers of attorney outstanding and has no
obligation or liability as guarantor, surety, co-signor, endorser, co-maker,
indemnitor or otherwise in respect of the obligation of any person or business
entity, except as endorser to makers of checks or letters of credit, 

 

19

 

respectively, endorsed or
made in the ordinary course of business.

 

4.17           Title and Condition of Purchased
Assets.  Except as set forth on Schedule
4.17, Seller has valid title to, and are the lawful owners of, all of the
Purchased Assets, free and clear of all Liens and Encumbrances, other than
statutory liens.  There are no agreements
with, options, commitments or rights in favor of any person to directly or
indirectly acquire the Business or any interest therein or any tangible
properties or assets of Seller other than in the ordinary course of business
consistent with past practices.  All of
the rights, properties and assets utilized or required in connection with
owning and operating the Business (other than the Retained Assets) are either
owned by Seller and included in the Purchased Assets or licensed or leased to
Seller under one of the Assigned Contracts. 
No assets, properties or rights used by Seller are held in the name or
in the possession of any person or entity other than Seller.  All tangible assets and properties included
in the Purchased Assets, whether real or personal, owned or leased, have been well
maintained and are in good operating condition and repair (with the exception
of normal wear and tear).

 

4.18           Real Property.

 

(a)             Except as set forth in Schedule
4.18, Seller does not own, operate, manage, or possess any real property or
any interest therein.

 

(b)             All real property leases and
subleases as to which Seller is a party and any amendments or modifications
thereof are listed in Schedule 4.18 (each a “Lease” and
collectively, the “Leases”).  Schedule
4.18 indicates each real property (the “Leased Real Property”) of which
Seller is the tenant or subtenant.   The
Leased Real Property Leased constitutes all of the facilities used or occupied
by Seller in connection with the Business. 
The Leases are valid, in full force and effect and enforceable (except
to the extent that the enforceability of obligations and the availability of
certain remedies thereunder are subject to and may be limited by general
principles of equity or by bankruptcy, insolvency, reorganization, arrangement,
fraudulent transfer, moratorium and other laws relating to or affecting
creditors’ rights generally).  With
respect to the Leased Real Property:  (i) Seller
has all easements and rights necessary to conduct the Business in a manner
consistent with past practices; (ii) no portion thereof is subject to any
pending or, to the knowledge of the Seller, threatened condemnation proceeding
or proceeding by any governmental authority; (iii) the buildings, plants,
improvements and structures, including, without limitation, heating,
ventilation and air conditioning systems, roof, foundation and floors, are in
good operating condition and repair, subject only to ordinary wear and tear,
and are not in compliance, in all material respects, with all zoning or other
applicable federal, state or local laws or regulations; (iv) Seller has
not received notice, and the Seller has no Knowledge, of any leases, subleases,
licenses, concessions or other agreements, written or oral, granting to any
party or parties the right of use or occupancy of any portion of any parcel of
Leased Real Property; (v) Seller has not received notice, and the Seller
has no Knowledge, of any outstanding options or rights of first refusal to
purchase any parcel of Leased Real Property, or any portion or interest
therein; (vi) Seller has not received notice, and the Seller has no
Knowledge, of any parties (other than Seller) in possession of any parcel of
Leased Real Property, other than tenants under any leases of the Leased Real
Property who are in possession of space to which they are entitled and Seller
enjoy peaceful and undisturbed possession under all leases for Leased Real
Property; (vii) the Leased Real Property 

 

20

 

is supplied with utilities
and other services necessary for the operation of the Business in a manner
consistent with past practices; and (viii) each parcel of Leased Real
Property abuts on and has direct vehicular access to a public road or access to
a public road via a permanent, appurtenant easement which benefits the parcel
of Leased Real Property.

 

4.19           Environmental Matters.

 

(a)             To the Seller’s Knowledge (without
independent investigation or inquiry), Seller has complied and is in compliance
with all applicable Environmental Laws, except for such noncompliance as could
not reasonably be expected to have a material adverse effect on the assets or
business of Seller, and Seller has not received written notice, report,
communication or information regarding any liabilities (whether accrued,
absolute, contingent, unliquidated or otherwise), or any corrective,
investigatory or remedial obligations, arising under any applicable
Environmental Laws in connection with Seller activities.

 

(b)             Seller does not now, and in the
past Seller has never did, in violation of Environmental Laws, maintain, store,
use, generate, treat, release, dispose (or cause to be disposed) of Hazardous
Substances in, at, under, upon or from any real property at any time owned,
leased, operated or controlled by Seller, including, without limitation, the
real property subject to the Leases, except for such noncompliance as could not
individually or in the aggregate reasonably be expected to have a material
adverse effect on the business, properties, assets or condition of Seller.

 

(c)             Seller is not subject to, nor has
it received any written notice of, any private, administrative or judicial
action, or an intended private, administrative or judicial action relating to
the presence or alleged presence of Hazardous Substances in, at, under or upon
the real property subject to the Leases in connection with Seller activities,
and there are no pending or, to the Seller’s Knowledge (without independent
investigation or inquiry), threatened actions or proceedings (or notices or
potential actions or proceedings) against Seller from any Governmental
Authority regarding any matter relating to any Environmental Laws.

 

For the purposes of this Agreement, “Environmental
Laws” means all applicable federal, state and local laws, rules,
regulations, ordinances, requirements and common law relating to public health
and safety, worker health and safety and pollution and protection of the
environment pertaining to (i) treatment, storage, disposal, generation and
transportation of toxic or hazardous substances or solid or hazardous waste, (ii) air,
water and noise pollution, (iii) groundwater and soil contamination, (iv) the
release or threatened release into the environment of toxic or hazardous
substances, or solid or hazardous waste, including, without limitation,
emissions, discharges, injections, spills, escapes or dumping of pollutants,
contaminants or chemicals, (v) the protection of wild life, marine
sanctuaries and wetlands, including, without limitation, all endangered and
threatened species, (vi) storage tanks, vessels and containers, (vii) underground
and other storage tanks or vessels, abandoned, disposed or discarded barrels,
containers and other closed receptacles, (viii) health and safety of
employees and other persons, and (ix) manufacture, processing, use,
distribution, treatment, storage, disposal, transportation or handling of
pollutants, contaminants, chemicals or toxic or hazardous substances or oil or
petroleum products or solid or hazardous waste, including, without limitation,
the Comprehensive Environmental Response, Compensation and Liability Act,
U.S.C. §9601 et seq., 

 

21

 

the Resource Conservation and Recovery Act of 1976, 42 U.S.C. §6901 et
seq., the Emergency Planning and Community Right-to-Know Act, 42 U.S.C. §11001
et seq., the Clean Air Act, 42 U.S.C. §7401 et seq., the Federal Water
Pollution Control Act, 33 U.S.C. §1251 et seq., the Toxic Substance Control
Act, 15 U.S.C. §2601 et seq., the Safe Drinking Water Act, 42 U.S.C. §300f et
seq., and the Occupational Safety and Health Act, 42 U.S.C. §1891 et seq., all
as in effect as of the date hereof, and any regulations, rules, ordinances
adopted or publications promulgated pursuant thereto.  “Hazardous Substances” means (i) hazardous
materials, hazardous substances, extremely hazardous substances, toxic
substances, hazardous wastes or words of similar import as defined under any
Environmental Laws other than customary office equipment and cleaning supplies,
(ii) petroleum, including without limitation, crude oil or any fraction
thereof, (iii) any radioactive material, (iv) asbestos in any form or
condition, and (v) polychlorinated byphenyls (“PCBs”) or
PCB-containing materials.  “Governmental
Authority” means any governmental agency, department, bureau, commission or
similar body.

 

4.20           Absence of Certain Changes.  Except as set forth on Schedule 4.20
and except as required by this Agreement, since the Current Balance Sheet Date,
there has not been any:

 

(a)             incident of damage, destruction or
loss of any property owned by Seller or used in the operation of the Business,
whether or not covered by insurance, having a replacement cost or fair market
value in excess of $50,000;

 

(b)             voluntary or involuntary sale,
transfer, surrender, abandonment, waiver, release or other disposition of any
kind by Seller of any right, power, claim, debt, asset or property (having a
replacement cost or fair market value in excess of $50,000 in the aggregate),
except the sale of inventory and collection of accounts in the ordinary course
of business consistent with past custom and practices;

 

(c)             material loan or advance by Seller
to any person, other than advances to employees for business expenses to be
incurred in the ordinary course of business consistent with past practice or
sales to customers on credit in the ordinary course of business consistent with
past practices;

 

(d)             declaration, setting aside, or
payment of any dividend or other distribution in respect of Seller’s equity
interests or any direct or indirect redemption, purchase, or other acquisition
of such stock, or the payment of principal or interest on any note, bond, debt
instrument or debt to any affiliate of Seller;

 

(e)             issuance by Seller of any notes,
bonds, or other debt securities or any equity securities or securities
convertible into or exchangeable for any equity securities;

 

(f)              cancellation, waiver or release by
Seller of any material debts, rights or claims, except in the ordinary course
of business consistent with past practices;

 

(g)             change in accounting principles,
methods or practices (including, without limitation, any change in depreciation
or amortization policies or rates) utilized by Seller;

 

(h)             capital expenditures or commitments
therefor by Seller in excess of $50,000 individually; or

 

22

 

(i)              adoption, amendment or termination
of any Employee Plan or increase in the benefits provided under any Employee
Plan, or payment of any bonus or profit sharing payments in each case except in
the ordinary course of business consistent with past practices or as required
by applicable law.

 

4.21           Customers.  The customer list set forth on Schedule
4.21 represents a true, complete and correct list of the top twenty (20)
customers of Seller that generated revenues in 2006, together with revenues
generated during that period from such customer.  To the Knowledge of Seller, except as set
forth on Schedule 4.21, there are no material outstanding disputes with
any customer included on the customer list, and no such customer has terminated
or materially altered its relationship with Seller or has stated its intention
not to continue to do business with Seller or to terminate or materially alter
its relationship with Seller.

 

4.22           Vendors.  The vendor list set forth on Schedule 4.22
represents a true, complete and correct list of the top twenty (20) vendors to
which Seller made payments during 2006. 
To the Knowledge of Seller, except as set forth on Schedule 4.22,
there are no material outstanding disputes with any such vendor included on Schedule
4.22, and no such vendor has terminated or materially altered its
relationship with Seller or has stated its intention not to continue to do
business with Seller or to terminate or materially alter its relationship with
Seller.

 

4.23           Accounts Receivable.  Attached as Schedule 4.23 is a true,
correct and complete list of all accounts receivable of Seller as of the
Closing Date (the “Accounts Receivable”).  All accounts receivable of Seller are
collectible at the aggregate recorded amounts thereof in the ordinary course of
Seller’s business, and are not subject to any offsets, defenses or
counterclaims.

 

4.24           Accounts Payable.  Attached as Schedule 4.24 is a true,
correct and complete list of all accounts payable of Seller as of the Closing
Date.  All accounts payable of Seller as
of the date hereof arose in the ordinary course of business and none is
delinquent or past due.  Seller has
disclosed to Purchaser in writing any objections, defenses or setoff rights to
the accounts payable of Seller.  The
accounts payable have been calculated in accordance with generally accepted
accounting principles consistently applied.

 

4.25           Certain Payments.  During the last three years, neither Seller,
nor any director, officer, member, manager, agent, or employee of Seller or any
other person associated with or acting for or on behalf of Seller, has directly
or indirectly, with respect to the Business (a) made any bribes, payoffs
or kickbacks, whether in money, property, or services (i) to obtain
favorable treatment in securing business, (ii) to pay for favorable
treatment for business secured, or (iii) to obtain special concessions or
for special concessions already obtained, or (b) established or maintained
any material fund or asset that has not been recorded in the books and records
of Seller, provided that the foregoing shall not be applicable or relate to
gifts, entertainment, travel, lodging and similar benefits afforded to
representatives of customers, vendors and suppliers and others in accordance
with industry practices.

 

4.26           No Brokers.  No broker, finder, agent or similar
intermediary has acted for or on behalf of Seller in connection with this
Agreement or the transactions contemplated hereby, and no other broker, finder,
agent or similar intermediary is entitled to any broker’s, finder’s or 

 

23

 

similar fee or other
commission in connection therewith based on any agreement, arrangement or
understanding with Seller.

 

4.27           Disclosure.  No representation or warranty by Seller in
this Agreement contains or will contain any untrue statement of a fact, or
omits to state a material fact, necessary in order to make the statements
contained herein, in light of the circumstances in which they were made, not
misleading.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

The Purchaser hereby represents and warrants to
Seller and the Shareholders as follows:

 

5.1             Organization.  The Purchaser is a limited liability company
duly organized, validly existing and in good standing under the limited
liability company laws of the State of Delaware, and has all requisite power
and authority to own its properties, to carry on its business as now being
conducted, to execute and deliver this Agreement and the agreements
contemplated herein, and to consummate the transactions contemplated hereby and
thereby.

 

5.2             Authorization.  The execution and delivery by the Purchaser
of this Agreement and the agreements provided for herein, and the consummation
by the Purchaser of all transactions contemplated hereunder and thereunder,
have been duly authorized by all requisite corporate and stockholder
action.  This Agreement has been duly
executed by the Purchaser.  This Agreement
and all other agreements and obligations entered into and undertaken in connection
with the transactions contemplated hereby to which the Purchaser is a party
constitute the valid and legally binding obligations of the Purchaser,
enforceable against the Purchaser in accordance with their respective terms
(except to the extent that the enforceability of obligations and the
availability of certain remedies thereunder are subject to and may be limited
by general principles of equity or by bankruptcy, insolvency, reorganization,
arrangement, fraudulent transfer, moratorium and other laws relating to or
affecting creditors’ rights generally). 
The execution, delivery and performance by the Purchaser of this
Agreement and the agreements provided for herein, and the consummation by the
Purchaser of the transactions contemplated hereby and thereby, will not, with
or without the giving of notice or the passage of time or both, (a) violate
the provisions of any law, rule or regulation applicable to the Purchaser,
(b) violate the provisions of the charter or bylaws of the Purchaser, (c) violate
any judgment, decree, order or award of any court, governmental body or
arbitrator applicable to the Purchaser, or (d) conflict with or result in
the breach or termination of any term or provision of, or constitute a default
under, or cause any acceleration under, or cause the creation of any lien,
charge or encumbrance upon the properties or assets of the Purchaser pursuant
to, any indenture, mortgage, deed of trust or other agreement or instrument to
which the Purchaser is a party or by which the Purchaser is or may be bound,
except as set forth on Schedule 5.2. 
Schedule 5.2 sets forth a list of all consents and approvals of
third parties that are required in connection with the consummation by the
Purchaser of the transactions contemplated by this Agreement.

 

5.3             No Broker.  No broker, finder, agent or similar
intermediary has acted for or on 

 

24

 

behalf of the Purchaser in
connection with this Agreement or the transactions contemplated hereby, and no broker,
finder, agent or similar intermediary is entitled to any broker’s, finder’s or
similar fee or other commission in connection therewith based on any agreement,
arrangement or understanding with the Purchaser.

 

5.4             Financial Solvency.  The Purchaser has the financial capacity to
perform all of its obligations hereunder. 
The Purchaser
is not insolvent as of the date hereof and will not be rendered insolvent in
connection with the consummation of the transactions contemplated hereunder,
after giving effect to all financing arrangements contemplated by the Purchaser
in connection with the transactions contemplated hereunder.  The Purchaser will be able to meet all of its
debts, including the liabilities assumed hereunder, as they become due and
payable.  The Purchaser confirms that it
is its present intention (i) to pay bona fide creditors of Seller as they
become due in the ordinary course and (ii) not to render the Purchaser
insolvent by granting any security interest over the assets or the business of Seller.

 

5.5             Restricted Stock.  Upon issuance, the Seller will acquire good
and marketable title to the Restricted Stock, free and clear of all Liens and
Encumbrances, subject to the restrictions on transfer imposed by the Restricted
Stock Agreement, the Voting Agreement Joinder, the Co-Sale Agreement Joinder or
applicable securities laws and regulations.

 

ARTICLE VI

PRE-CLOSING COVENANTS OF THE PARTIES

 

Prior to the Closing, the parties hereto
covenant and agree as follows:

 

6.1             Conduct of the Business.

 

(a)             From the date hereof until the
Closing Date, Seller shall conduct the Business in the ordinary course
consistent with past practices and shall use commercially reasonable efforts to
preserve intact its business organization and relationships with third parties
and to keep available the services of its present officers, employees and
independent contractors and preserve the goodwill, reputation and present
relationships of the Business with suppliers, customers, licensors and others
having business relations with Seller. 
Without limiting the generality of the foregoing, from the date hereof
until the Closing Date, Seller will not:

 

(i)           adopt or propose any change in its Articles of
Incorporation or Bylaws;

 

(ii)          merge or consolidate with any other entity;

 

(iii)         sell, lease, license, encumber or otherwise dispose of any
material assets or property except (A) pursuant to existing contracts or
commitments and (B) in the ordinary course consistent with past practices;

 

(iv)         except for salary increases or the introduction of new or
modifications to employee benefit arrangements consistent with the ordinary
course of business, (A) materially increase in any manner the base
compensation of, or enter into any new bonus or incentive agreement or
arrangement with, any of its employees or independent contractors, (B) enter
into any new employment, severance, consulting, or other 

 

25

 

compensation agreement with any of its
existing employees or independent contractors, (C) amend or enter into a
new Employee Plan (except as required by law), or (iv) make or agree to
make any bonus or profit sharing payments to any employee or independent
contractor;

 

(v)             issue any capital stock or other equity interests of, or
any securities convertible into, or any rights, warrants, calls, subscriptions
or options to acquire, any such capital stock, equity interests, or convertible
securities of Seller;

 

(vi)            incur any indebtedness for borrowed money, except in the
ordinary course consistent with past practice, or guarantee any such
indebtedness or issue or sell any debt securities or warrants or rights to
acquire any debt securities of such party or guarantee any debt securities of
others; or

 

(vii)           may make cash distributions to the Shareholders except for
tax obligations of the Shareholders in the ordinary course consistent with past
practices.

 

(b)             Seller will not, (i) take or
agree or commit to take any action that would make any representation and
warranty made by Seller under this Agreement on the date of its execution and
delivery inaccurate in any respect at, or as of any time prior to, the Closing
Date or (ii) omit or agree or commit to omit to take any action necessary
to prevent any such representation or warranty from being inaccurate in any
respect at any such time.

 

6.2             Notices of Certain Events.  Shareholders will promptly notify the
Purchaser of:

 

(a)             any notice or other communication
from any person or entity alleging that the consent of such person or entity is
or may be required in connection with the transactions contemplated by this
Agreement;

 

(b)             any material notice or other
communication from any governmental or regulatory agency or authority in
connection with the transactions contemplated by this Agreement; and

 

(c)             any material actions, suits,
claims, investigations or proceedings commenced or, to the Seller’s Knowledge,
threatened against, or relating to or involving or otherwise affecting Seller
or that relate to the consummation of the transactions contemplated by this
Agreement.

 

6.3             Other Filings.  Seller, Shareholders and Purchaser shall
cooperate with each other (i) in determining whether any other action by
or in respect of, or filing with, any governmental body, agency, official or
authority is required, or any actions, consents, approvals or waivers are
required to be obtained from parties to any material contracts, in connection
with the consummation of the transactions contemplated by this Agreement and (ii) in
taking such actions or making any such filings, furnishing information required
in connection therewith and seeking timely to obtain any such actions,
consents, approvals or waivers.

 

6.4             Budget; Transition Plan.  Prior to the Closing, Seller and Purchaser
shall mutually agree upon an operating budget for the Businsess for the fiscal
years ended December 31, 2007 and December 31, 2008 (the “Budget”).  The parties anticipate that Seller will
operate under their current names for a period of time following the Closing,
and that over a one year period 

 

26

 

following the Closing that
Seller will transition to the Purchaser’s operational and financial technology.

 

6.5             Non-Competition Agreements.  At the Closing, Shareholders shall cause the
employees and sales representatives of Seller listed on Schedule 6.5 to
enter into to twelve (12) month non-competition agreements with the Purchaser
in form and substance reasonably acceptable to the Purchaser.

 

6.6             Exclusivity.  During the period from the date of this Agreement
through the Closing or the earlier termination of this Agreement pursuant to Article XII
hereof, Shareholders shall not take or permit any other person on its behalf to
take any action to encourage, initiate or engage in discussions or negotiations
with, or provide any information to, any person (other than Purchaser and
Purchaser’s representatives) concerning any purchase of the Shares, any merger
or recapitalization involving Seller, any sale of all or substantially all of
the assets of Seller or similar transaction involving Seller (other than assets
sold in the ordinary course of business). 
Shareholders shall, and shall cause Seller and its officers, directors,
managers, agents and representatives to, terminate any and all negotiations or
discussions with any third party regarding any proposal concerning any purchase
of the Securities, any merger or recapitalization involving Seller, any sale of
all or substantially all the assets of Seller or other similar transaction.

 

ARTICLE VII

OTHER COVENANTS OF THE PARTIES

 

The parties hereto covenant and agree as
follows:

 

7.1             Confidential Information;
Non-Competition.

 

(a)             From and after the Closing,
Shareholders shall keep secret and retain in confidence, and not use for the
benefit of any person or entity other than Purchaser, all confidential matters
and trade secrets known to him relating to the Business; provided, however,
that the Shareholders may disclose such confidential matters or trade secrets
if required by law or pursuant to an order from a court or governmental
authority.

 

(b)             For a period of five (5) years
after the Closing Date, each of the Shareholders and their respective
affiliates shall not directly or indirectly, alone or as a partner, joint
venturer, officer, director, employee, consultant, agent, independent
contractor or stockholder of any company or business:

 

(i)              engage or participate in any business activity that is
directly or indirectly in competition with any of the commercial trucking
services of Seller that exist on the Closing Date (other than as an owner of
not more than one percent (1%) of the shares of stock of any publicly traded
company),

 

(ii)             solicit, induce or attempt to solicit or induce any
vendor or customer of Seller to terminate or otherwise cease its relationship
with Seller, or

 

27

 

(iii)            recruit or solicit any person who is an employee or agent
of Seller, other than any person who is not and has not been an employee or
agent of Seller for a period of at least twelve (12) months.

 

(c)             If any Shareholders breaches, or
threatens to commit a breach of, any of the covenants set forth in this Section 7.1
(the “Restrictive Covenants”), the Purchaser shall have the right and
remedy to have the Restrictive Covenants specifically enforced against
Shareholder by any court of competent jurisdiction, including immediate
temporary injunctive relief without bond and without the necessity of showing
actual monetary damages, it being agreed that any breach or threatened breach
of the Restrictive Covenants would cause irreparable injury to the Purchaser
and that money damages would not provide an adequate remedy to the Purchaser or
the Companies, which right and remedy is in addition to, and not in lieu of,
any other rights and remedies available to the Purchaser under law or in
equity.

 

(d)             If any court of competent
jurisdiction at any time deems the Restrictive Covenants, or any part hereof,
unenforceable because of the duration or geographical scope of such provisions,
the other provisions of this Section 7.1, will nevertheless stand
and to the full extent consistent with law continue in full force and effect,
and it is the intention and desire of the parties that the court treat any
provisions of this Agreement which are not fully enforceable as having been
modified to the extent deemed necessary by the court to render them reasonable
and enforceable, and that the court enforce them to such extent.

 

7.2             Publicity.  No publicity release or announcement
concerning this Agreement or the transactions contemplated herein shall be
issued without advance written approval of the form and substance thereof by
the Purchaser and the Shareholders; provided, however, that such
restrictions shall not apply to any disclosure required by regulatory authorities,
applicable law or the rules of any securities exchange which may be
applicable.

 

7.3             Access to Records.  Purchaser agrees to permit Seller and its
attorneys, accountants, agents and designees, such access to, and right to
copy, such books and records as the Seller may deem reasonably necessary or
reasonably desirable in connection with the defense of any actual or threatened
litigation or the preparation of any tax returns of Seller.  Any such examination and copying shall be at
the expense of Seller, shall be performed at the place where the books and
records are regularly maintained by Purchaser and shall not unreasonably
interfere with the normal business activities of Purchaser.

 

7.4             Commercially Reasonable Efforts.  Subject to the terms and conditions of this
Agreement, each party will use its commercially reasonable efforts to take, or
cause to be taken, all actions and to do, or cause to be done, all things
necessary or desirable under applicable laws and regulations to consummate the
transactions contemplated by this Agreement and to vest in the Purchaser good,
valid and marketable title to the Purchased Assets, free and clear of any and
all Liens and Encumbrances.  Seller and
Purchaser each agree, and the Shareholders agree prior the Closing to cause
Seller, and the Purchaser agrees after the Closing to cause Seller, to execute
and deliver such other documents, certificates, agreements and other writings
and to take such other actions as may be necessary or desirable in order to
consummate or implement expeditiously the transactions contemplated by this
Agreement and to vest in the Purchaser good, valid and marketable title to the
Purchased Assets, free and clear of any and all Liens and

 

28

 

Encumbrances.

 

ARTICLE VIII

CONDITIONS TO CLOSING

 

8.1             Conditions to the Obligations of
each Party.  The obligations of the
Purchaser, Seller, and the Shareholders to consummate the Closing are subject
to the satisfaction of the following conditions:

 

(a)             No provision of any applicable law
or regulation and no judgment, injunction, order or decree shall prohibit the
consummation of the Closing.

 

(b)             Each other party to this Agreement
shall have executed and delivered each of the ancillary agreements to be entered
into by it at Closing, in each case substantially in the form attached as an
exhibit to this Agreement, and any other documents or items required to be
delivered by it pursuant to Section 2.2.

 

8.2             Conditions to the Obligations of
the Purchaser.  The obligation of the
Purchaser to consummate the Closing is subject to the satisfaction of the
following further conditions:

 

(a)             (i) Seller and Shareholders
shall have performed in all material respects all of their obligations
hereunder required to be performed by them on or prior to the Closing Date, (ii) the
representations and warranties of Seller and Shareholders contained in this
Agreement (without giving effect to any “materiality” or “material adverse
effect” qualification or exception therein) at the time of its execution and
delivery shall be true and correct in all material respects at and as of the
Closing Date as if made at and as of such date, and (iii) the Purchaser
shall have received a certificate signed by the President of Seller and by the
Shareholders to the foregoing effect.

 

(b)             Seller shall have received all of
the consents, authorizations or approvals from the governmental agencies
referred to in Section 4.4, in each case in form and substance
reasonably satisfactory to the Purchaser, and no such consent, authorization or
approval shall have been revoked, except where the failure to receive or
maintain such consent, authorization or approval would not have, and is not
reasonably likely to have, individually or in the aggregate, a material adverse
effect on Seller or its business, properties, assets or condition.

 

(c)             No event or events shall have
occurred since the date of this Agreement which would have, or is not
reasonably likely to have, individually or in the aggregate, a material adverse
effect on Seller or its business, properties, assets or condition, other than
those, if any, that result from actions or changes expressly permitted by, and
the transactions contemplated by, this Agreement.

 

(d)             Purchaser shall be fully satisfied
in its sole and absolute discretion with the results of its due diligence
investigation of Seller and the Business.

 

8.3             Conditions to the Obligations of
the Seller.  The obligation of the
Seller to consummate the Closing is subject to the satisfaction of the
following further conditions:

 

29

 

(a)             (i) the Purchaser shall have
performed in all material respects all of its obligations hereunder required to
be performed by it at or prior to the Closing Date, (ii) the
representations and warranties of the Purchaser contained in this Agreement at
the time of its execution and delivery shall be true and correct in all
material respects at and as of the Closing Date as if made at and as of such
date, and (iii) the Shareholders shall have received a certificate signed
by the President of Purchaser to the foregoing effect.

 

(b)             The Purchaser shall have received
all consents, authorizations or approvals from governmental agencies referred
to in Section 5.2, in each case in form and substance reasonably
satisfactory to the Seller, and no such consent, authorization or approval
shall have been revoked, except where the failure to receive or maintain such
consent, authorization or approval would not have, and is not reasonably likely
to have, individually or in the aggregate, 
a material adverse effect on the Seller.

 

ARTICLE IX

SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS

 

9.1             Survival of Representations,
Warranties and Covenants of Seller and Shareholders.  All representations and warranties of Seller
and the Shareholders contained herein shall survive the execution and delivery
of this Agreement and the Closing and shall thereafter terminate and expire
eighteen (18) months after the Closing Date; provided, however,
that (i) the representations and warranties set forth in Section 4.10
(Tax Matters) (the “Tax Representations”) and Section 4.19
(Environmental Matters) hereof shall survive for the period of any applicable
statute of limitations plus thirty (30) days, at which time such
representations and warranties shall terminate, and (ii) the
representations and warranties set forth in Section 3.1 (Title), Section 4.1
(Organization), Section 4.3 (Capitalization), Section 4.17
(Title to Assets), and Section 4.27 (No Brokers) (collectively, the
“Unlimited Representations”) shall survive indefinitely.  All covenants and other obligations of Seller
and the Shareholders contained herein shall survive the execution and delivery
of this Agreement and the Closing.  The
right to indemnification based upon such representations, warranties, covenants
and obligations shall not be affected by any examination, inspection, audit or
other investigation conducted by the Purchaser with respect to, or any
knowledge acquired at any time with respect to, the accuracy or inaccuracy of
or compliance with any such representation, warranty, covenant or
obligation.  Each of Seller and the
Shareholders acknowledge and agree that, notwithstanding Purchaser’s
participation in the preparation and drafting of the Schedules to this
Agreement or Purchaser’s knowledge of any facts which have failed to be
disclosed or set forth on such Schedules, Purchaser shall have the right to
rely fully upon the representations, warranties, covenants and obligations of
Seller and the Shareholders contained in this Agreement or any agreement or
instrument required to be delivered hereunder, and no presumption or burden of
proof shall arise in favor of Seller or the Shareholders by virtue of such
participation by Purchaser.

 

9.2             Survival of Representations,
Warranties and Covenants of the Purchaser. 
All representations and warranties of the Purchaser contained herein
shall survive the execution and delivery of this Agreement and the Closing and
shall thereafter terminate and expire eighteen (18) months after the Closing
Date; provided, however, that the representations and warranties
set forth in Section 5.4 (Financial Solvency) and Section 5.5
(Restricted Stock) shall survive indefinitely. 
All covenants and other obligations of the Purchaser contained herein
shall survive 

 

30

 

the execution and delivery
of this Agreement and the Closing.

 

ARTICLE X

INDEMNIFICATION

 

10.1           Indemnification by Seller and
Shareholders.  Provided the Purchaser’s
Indemnitees (as defined herein) claim therefor is instituted by written notice
within the applicable time periods specified in Section 9.1 above,
each of Seller and the Shareholders, jointly and severally, shall indemnify,
defend and hold harmless the Purchaser, its successors and assigns in interest,
and each of their respective shareholders, directors, officers, and employees
(the “Purchaser Indemnitees”) from and against any and all actual
damages, awards, liabilities, judgments, payments, and other losses, all costs
and expenses of investigating any claim, lawsuit or arbitration and any appeal
therefrom, all reasonable attorneys’ fees incurred in connection therewith, and
all amounts paid incident to any compromise or settlement of any such claim,
lawsuit or arbitration (“Losses”) that may be incurred or suffered by
the Purchaser which may arise out of or result from the following:

 

(a)             any misrepresentation or breach of
the representations and warranties contained in Article III hereof;

 

(b)             any misrepresentation or breach of
the representations and warranties contained in Article IV hereof;

 

(c)             any breach of any covenant or
agreement of Seller or any Shareholder contained in this Agreement (including,
without limitation, the Restrictive Covenants);

 

(d)             any Taxes of Seller with respect to
any period ending on or prior to the Closing Date, or the portion of any period  ending on the Closing Date, and any Taxes
of any person that Seller is liable for in a period ending on the Closing Date (or
a portion of any  period ending on the
Closing Date) as a result of joint and several liability as a transferee or
successor, by contract, or otherwise;

 

(e)             any claim by any person for
brokerage or finder’s fees or commissions or similar payments based upon any
agreement or understanding alleged to have been made by any such person with
Seller or the Shareholders (or any person acting on their behalf) in connection
with the transactions contemplated by this Agreement;

 

(f)              any claim by any person for payment
of any other expenses incurred by Seller or the Shareholders in connection with
this Agreement and the transactions contemplated hereby; and

 

(g)             any and all actions, suits,
proceedings, claims, demands, assessments, judgments, costs and expenses, including,
without limitation, reasonable legal fees and expenses, incurred in enforcing
this indemnity.

 

10.2           Indemnification by Purchaser.  Provided the Seller Indemnitees (as defined
herein) claim therefor is instituted by written notice within the time period
specified in Section 9.2 above, the Purchaser shall indemnify,
defend and hold harmless the Seller and its respective 

 

31

 

successors and assigns in
interest (the “Seller Indemnitees”) from and against any Losses that may
be incurred or suffered by the Seller which may arise out of or result from the
following:

 

(a)             any misrepresentation or breach of
the representations and warranties contained in Article V hereof;

 

(b)             any breach of any covenant or agreement
of the Purchaser contained in this Agreement;

 

(c)             arising from any claim (including,
without limitation, any product liability claim, whether such claim is for
bodily injury, property damage or any other type of damage) in connection with
the Business related to or arising from any act or omission occurring on or
after the Closing Date; and

 

(d)             any and all actions, suits,
proceedings, claims, demands, assessments, judgments, costs and expenses,
including, without limitation, reasonable legal fees and expenses, incurred in
enforcing this indemnity.

 

10.3           Computation of Losses.  For purposes of calculating any Losses
suffered by an Indemnified Party pursuant to Sections 10.1 or 10.2
hereof or under any other specific indemnification covenant contained in this
Agreement, the amount of the Losses suffered by the Indemnified Party shall be
the net amount of the Loss so suffered after giving effect to the aggregate
value of any money or other assets with a readily determinable value
(including, without limitation, proceeds of insurance) realized by the
Indemnified Party in connection therewith.

 

10.4           Claims for Indemnification.  Whenever any claim shall arise for
indemnification under this Article X, the Purchaser or the Seller
and the Shareholders, as the case may be (the party seeking such
indemnification, the “Indemnified Party”), shall promptly notify the
other party or parties hereto (the party or parties from whom indemnification
is sought, the “Indemnifying Party”), and such Indemnifying Party’s counsel
pursuant to Section 12.1 herein, in writing (the “Indemnification
Notice”) of the claim, which writing shall include the facts constituting
the basis for such claim, the specific section of this Agreement upon which the
claim is based and an estimate, if possible, of the amount of damages suffered
by the Indemnified Party.  In the event
of any such claim for indemnification hereunder resulting from or in connection
with any claim or legal proceedings by a third party (a “Third Party Claim”),
the Indemnification Notice shall specify, if known, the amount or an estimate
of the amount of the liability arising therefrom and shall attach all
correspondence and demands from such third party.  The failure to give an Indemnification Notice
to the Indemnifying Party shall not relieve the Indemnifying Party of any
liability hereunder unless the Indemnifying Party was prejudiced thereby under
this Article X, and then only
to the extent of such prejudice.  In the
event that any claim for indemnification involves a matter other than a Third
Party Claim, the Indemnifying Party shall have thirty (30) days from receipt of
the Indemnification Notice to object to such claim by delivery of a written
notice of such objection to the Indemnified Party specifying in reasonable detail
the basis for such objection.  Failure to
timely object to such claims shall constitute a final and binding acceptance of
the claim for indemnification by the Indemnifying Party and the claim shall be
paid in accordance with Section 10.7 hereof.

 

32

 

10.5           Right of Set-Off.  Upon notice to the Seller specifying in
reasonable detail the basis therefor, Purchaser may set-off any amount to which
it may be entitled under this Article X against amounts otherwise
payable by Purchaser under Section 1.3 hereof.  The exercise of a right of set-off by
Purchaser in good faith, whether or not ultimately determined to be justified,
will not constitute a breach of Section 1.3 hereof.  Neither the exercise of, nor the failure to
exercise, such right of set-off will constitute an election of remedies or
limit Purchaser in any manner in the enforcement of any other remedies that may
be available to it.

 

10.6           Defense by the Indemnifying Party.

 

(a)             In connection with any Third Party
Claim, the Indemnifying Party may, upon written notice given to the Indemnified
Party, assume the defense of any such Third Party Claim if the Indemnifying
Party acknowledges to the Indemnified Party in writing the obligation of the
Indemnifying Party to indemnify the Indemnified Party with respect to all
elements of such Third Party Claim.  If
the Indemnifying Party assumes the defense of any such Third Party Claim, the
Indemnifying Party shall select counsel to conduct the defense of such Third Party
Claim, and at the sole cost and expense of the Indemnifying Party, shall take
all steps it deems necessary or appropriate in the defense or settlement
thereof.  The Indemnifying Party shall
not consent to a settlement of, or the entry of any judgment arising from, any
such Third Party Claim without the prior written consent of the Indemnified
Party (which consent shall not be unreasonably withheld or delayed), unless
such settlement or judgment includes a full release of the Indemnified Party
from such Third Party Claim.  No
settlement or compromise which seeks non-monetary damages which could have an
adverse effect on the business or assets of the Indemnified Party shall be
entered into without the consent of the Indemnified Party.  The Indemnified Party shall be entitled to
participate in (but not control) the defense of any such Third Party Claim,
with its own counsel and at its own expense. 
If the Indemnifying Party does not assume the defense of any such Third
Party Claim within thirty (30) days after the date it receives written notice
of such Third Party Claim from the Indemnified Party: (i) the Indemnified
Party may defend against such Third Party Claim in such manner as it may deem
necessary or appropriate, including, but not limited to, settling such Third
Party Claim so long as such settlement includes a full release of the
Indemnifying Party from such Third Party Claim, on such terms as the
Indemnified Party may deem appropriate; and (ii) the Indemnifying Party
shall be entitled to participate in (but not control) the defense of such
action, with its counsel and at its own expense.  If the Indemnifying Party thereafter seeks to
question the manner in which the Indemnified Party defended such Third Party Claim
or the amount or nature of any such settlement, the Indemnifying Party shall
have the burden to prove by a preponderance of the evidence that the
Indemnified Party did not defend or settle such Third Party Claim in a
reasonably prudent manner.

 

(b)             The Indemnifying Party and the
Indemnified Party shall cooperate with each other in all reasonable respects in
connection with the defense of any Third Party Claim, including making
available records relating to such claim and furnishing employees of the
Indemnified Party as may be reasonably necessary for the preparation of the
defense of any such Third Party Claim or for testimony as witnesses in any
proceeding relating to a Third Party Claim.

 

10.7           Payment of Indemnification
Obligation.  Upon a final
determination of an indemnification claim made by the Indemnified Party,
whereby such final determination is by 

 

33

 

reason of (i) a failure
of the Indemnifying Party to timely object to an Indemnification Notice or (ii) the
mutual agreement of the Indemnifying Party and the Indemnified Party, or (iii) a
final, non-appealable judgment of a court of competent jurisdiction, then the
amount of the Losses stated in such claim or otherwise agreed to or determined,
as the case may be, shall be paid in cash or by cashier’s check or by wire
transfer of immediately available funds to the Indemnified Party.   All payments paid by Purchaser or Seller, as
the case may be, under this Article X shall be treated as
adjustments to the Purchase Price for all tax purposes.

 

10.8           Limitations.

 

(a)             Seller shall have no obligation to
indemnify the Purchaser under Section 10.1 unless and until the
aggregate amount of all Losses incurred or sustained by the Purchaser in
respect thereof exceeds $100,000 (the “Deductible”), whereupon the
Seller shall be obligated in respect of all Losses in excess of the Deductible;
provided, however, that the Deductible shall not apply to Losses
arising under or related to (i) Sections 10.1(a) or 10.1(b) due
to a breach of the Tax Representations or the Unlimited Representations, or (ii) 
Sections 10.1(d), 10.1(e), 10.1(f), 10.1(g), 10.1(h) or
14.11.

 

(b)             Seller shall have no obligation to
indemnify the Purchaser under Section 10.1 for the aggregate amount
of all Losses incurred or sustained by the Purchaser in respect thereof which
exceed $4,000,000 (the “Indemnification Cap”); provided, however,
that the Indemnification Cap shall not apply to Losses arising under or related
to (i) Sections 10.1(a) or 10.1(b) due to a breach
of the Tax Representations or the Unlimited Representations, or (ii)  Sections
10.1(d), 10.1(e), 10.1(f), 10.1(g), 10.1(h) or
14.11.

 

(c)             Subject to the foregoing and Section 10.3,
an Indemnified Party shall be entitled to recover the full amount of any Losses
incurred due to the matter for which indemnification is sought, including
reasonable attorney’s fees incurred in connection therewith.  Except with respect to any Loss that is the
result of fraud, intentional misrepresentation or willful misconduct on the
part of the other party or any of its affiliates, each of the parties hereto
agrees that, from and after the Closing, his or its sole and exclusive remedy
with respect to any and all claims relating to breaches of covenants (other
than the Restrictive Covenants), representations and warranties of this
Agreement shall be indemnification pursuant to Article X;  provided, however,
that nothing in this provision shall limit any equitable remedy, including
injunctions and specific performance, that a party may have pursuant to this
Agreement or the transactions contemplated hereby.

 

ARTICLE XI

OTHER AGREEMENTS AND COVENANTS

 

11.1           Transfer Taxes.  Any and all transfer, sales, use, purchase,
value added, excise, real property, personal property, intangible, stamp, or
similar Taxes (collectively, “Transfer Taxes”) imposed on, or resulting
from, the transfer of any Purchased Assets (including those Transfer Taxes
imposed on Purchaser or the Purchased Assets) shall be shared equally by Seller
and Purchaser.

 

34

 

11.2           Required Consents.

 

(a)             To the extent that the consents and
approvals set forth in Schedule 4.4 and Schedule 4.11 of the
Disclosure Schedule are not obtained by Seller, Seller will, during the sixty
(60) day period commencing with the Closing Date, use reasonable efforts, at
its own expense, to obtain such consents or approvals.  Purchaser shall reasonably cooperate with
Seller to obtain such consents or approvals. 
Without limiting the generality or effect of any provision of this
Agreement, to the extent that any Contract to be transferred pursuant to the
terms of this Agreement is not capable of being transferred without such
consent or approval, nothing in this Agreement shall constitute a transfer or
attempted transfer thereof.

 

(b)             To the extent that any of the
consents and approvals set forth in Schedule 4.4 and Schedule 4.11
of the Disclosure Schedule are not obtained by Seller, Seller will, during the
60-day period commencing with the Closing Date or such longer period as
Purchaser may reasonably request (but, as to any particular Contract, not
longer than the term thereof), use commercially reasonable efforts with costs
and expenses of Seller related thereto to be borne by Seller to (i) provide
to Purchaser, at the request of Purchaser, the benefits (and the burdens) of
the related Contract, (ii) cooperate in any reasonable and lawful
arrangement designed to provide such benefits (and burdens) to Purchaser
without incurring any obligation to any other person or entity other than to
provide such benefits to Purchaser, and (iii) enforce, at the request of
Purchaser for the account of Purchaser, any rights of Seller arising from the
related Contract.  Purchaser shall
reasonably cooperate with Seller in connection with the foregoing.  At the end of such 60-day period (or such
longer period as Purchaser may reasonably request), Seller will have no further
obligations hereunder with respect to any such Contract and the failure to
obtain any required consent or approval with respect thereto will not be a
breach of this Agreement; provided, that nothing contained in this Section 11.2(b) shall
affect the liability of Seller, if any, pursuant to this Agreement for having
failed to disclose the need for such consent or approval in Schedule 4.4
or Schedule 4.11  or to use
reasonable efforts in accordance with the provisions hereof to obtain such
required consent or approval.  Provided
(and for so long as) Purchaser receives substantially all of the benefits of
the related Contract not transferred to Purchaser hereunder, Purchaser shall
perform the obligations of Seller under or in connection with such Contract for
the benefit of the other party or parties thereto.

 

11.3           Post-Closing Access to
Records/Cooperation.

 

(a)             Purchaser, on the one hand, and
Seller and the Shareholders, on the other hand, shall provide each other with
such assistance as may reasonably be requested by the other in connection with
the preparation of any return or report of Taxes, any audit or other
examination by any taxing authority, any judicial or administrative proceedings
relating to liabilities for Taxes, or any other matter for which cooperation
and assistance is reasonable requested. 
Such assistance shall include making employees available on a mutually
convenient basis to provide additional information or explanation of material
provided hereunder and shall include providing copies of relevant Tax Returns
and supporting material.  The party
requesting assistance hereunder shall reimburse the assisting party for
reasonable out-of-pocket expenses incurred in providing assistance.  Purchaser, on the one hand, and Seller and
the Shareholders, on the other hand, will retain for the full period of any
statute of limitations and provide the others with any records or information
which may be relevant to such preparation, audit, examination, proceeding or
determination.

 

35

 

(b)             Each of Seller, the Shareholders
and Purchaser agree that in the event after the Closing Date any further action
is necessary or desirable to carry out the purposes of this Agreement, each
such party will take such further action (including the execution and delivery
of such further instruments and documents) as any other party reasonably may
request, at the sole cost and expense of the requesting party (unless the
requesting party is entitled to indemnification therefor under Section 10).

 

11.4           Bulk Sale Waiver and Indemnity.  The parties hereto acknowledge and agree that
no filings with respect to any bulk sales or similar laws have been made, nor
are they intended to be made, nor are such filings a condition precedent to the
Closing; and, in consideration of such waiver by Purchaser, Seller and the
Shareholders shall indemnify, defend and hold Purchaser Indemnified Parties
harmless against any claims or damages resulting or arising from such waiver
and failure to comply with applicable bulk sales laws, except such indemnity
shall not apply with respect to claims and damages arising out of Assumed Liabilities.

 

11.5           Use of the Seller’s Name.  Seller and the Shareholders acknowledge and
agree that all of Seller’s rights in and to, and ownership of, the name under
which it is doing business and any names related or substantially similar
thereto shall be transferred hereunder to Purchaser.  From and after the Closing, Seller and its
affiliates shall be prohibited from using such names, except as necessary to
effect the change of the name under which Seller is doing business or to
evidence that such change has occurred. 
Seller shall file all documents with the appropriate governmental
authorities in the State of Utah (within five (5) business days after the
Closing), and such other states in which Seller is qualified or registered to
do business as a foreign corporation (within five (5) business days after
the Closing), to change the name under which Seller is doing business to a name
which does not contain the words “Transportation Management Group” or any other
substantially similar words.

 

ARTICLE XII

EMPLOYEE MATTERS

 

12.1           Offers of Employment.   After the Closing, Purchaser agrees to make
an offer of employment to substantially all employees of Seller (the “Potential
Employees”), such offers to be effective as of the Closing Date (the “Hire
Date”).  Seller gives its full
authorization and consent for (i) Purchaser to make such offers of
employment to the Potential Employees, and (ii) the Potential Employees to
accept and commence employment with Purchaser on the Hire Date, at which time
Seller shall terminate the employment of such Potential Employees.  Each of Seller and the Shareholders agree to
assist Purchaser as reasonably requested by Purchaser in communicating any such
offers of employment to the Potential Employees and arranging for Purchaser to
meet with such employees regarding the offers. 
All Potential Employees who accept employment with Purchaser will become
employees of Purchaser effective as of the Hire Date (each a “Hired Employee”).  Potential Employees who do not accept
employment with Purchaser will not become employees of the Purchaser.  Except with respect to any employment
agreement that Purchaser may enter into with any Hired Employee, each Hired
Employee shall be an employee at will subject to Purchaser’s employment
policies.  Purchaser acknowledges that
Seller is relying on this covenant for purposes of assessing its obligations to
give notice of the transactions contemplated hereby to its employees or to take
any other action under applicable laws.

 

36

 

12.2           Liabilities. Seller shall
remain responsible at all times and Purchaser shall have no liability or
responsibility for any Liabilities or other claims related to any suit,
proceeding or claim brought by any of the Potential Employees relating to or
arising from their employment with Seller or the termination of their
employment with Seller.  Seller shall be
solely responsible for all Liabilities for severance pay by any of the
Potential Employees and any claims that the consummation of the transaction
contemplated by this Agreement constitutes a termination or constructive
termination of the employment of any of the Potential Employees.  Notwithstanding any other provision of this
Agreement to the contrary, including any other indemnification provisions and
limitations contained elsewhere in this Agreement, Seller and the Shareholders,
jointly and severally, shall indemnify, reimburse, defend and hold harmless
Purchaser from and against any and all claims, actions or proceedings for matters
occurring on or prior to the Closing Date based upon, arising out of or
otherwise in respect of any employment action or practice of Seller in
connection with persons previously employed, employed or seeking to be employed
by Seller, including, without limitation, claims, actions or proceedings
relating to or arising under the Workers Adjustment and Retraining Notification
Act of 1988 or any similar or successor federal, state or local law resulting
from its actions under this Agreement or from its termination of employment of
any of its employees.

 

12.3           Severance. Subject to
compliance by Purchaser with its obligations under Section 14.11,
Seller shall be solely responsible for all Liabilities for severance pay to any
of the Potential Employees due as a result of their termination of employment
with Seller.

 

12.4           Accrued Vacation Time.
Purchaser hereby agrees to satisfy when due all obligations of Seller to
provide accrued paid vacation (or pay in lieu thereof) to each Hired Employee
solely to the extent such accrued vacation as of the Closing Date is reflected
on Schedule 1.3.   Purchaser will
give each Hired Employee credit under Purchaser’s vacation policies, for
purposes of eligibility and entitlement to benefits, for such Hired Employee’s
service with Seller prior to the Closing to the extent such service was
credited under Seller’s policies.

 

12.5           Employee Benefit Plans.  Purchaser shall not adopt or assume any of
Seller’s Employee Benefit Plans listed on Schedule 4.14.  Seller and Purchaser agree to furnish each
other with such information concerning the Potential Employees and Hired
Employees, and to take all such other reasonable action, as is necessary and
appropriate to effect the transactions contemplated herein.  Purchaser may adopt and provide for Hired
Employees such employee benefit plans as it may determine in its sole
discretion.

 

ARTICLE XIII

TERMINATION

 

13.1           Termination.  This Agreement may be terminated at any time
prior to the Closing:

 

(a)             by written agreement of Seller, the
Shareholders and the Purchaser;

 

(b)             by either the Seller or the
Purchaser if the Closing shall not have been consummated on or before May 18,
2007; provided, however, that such termination right shall not be
available to a party that has failed to fulfill its obligations under this
Agreement or whose 

 

37

 

actions or omissions have
been a significant cause of the Closing not occurring on or before such date;

 

(c)             by the Purchaser if any of the
conditions in Section 8.1 or Section 8.2 is or becomes
impossible (other that through failure of the Purchaser to fulfill its
obligations under this Agreement) and the Purchaser has not waived in writing
such condition on or before the Closing;

 

(d)             by the Seller if any of the conditions
in Section 8.1 or Section 8.3 is or becomes impossible
(other that through failure of the Seller to fulfill its obligations under this
Agreement) and the Seller has not waived in writing such condition on or before
the Closing; or

 

(e)             by either the Seller or the
Purchaser if there shall be any law or regulation that makes consummation of
the transactions contemplated hereby illegal or otherwise prohibited or if
consummation of the transactions contemplated hereby would violate any
non-appealable final order, decree or judgment of any court or governmental
body having competent jurisdiction.

 

The party desiring to terminate this
Agreement pursuant to clauses (b) or (e) shall give notice of such
termination to the other parties.

 

13.2           Effect of Termination.  If this Agreement is terminated as permitted
by Section 13.1, such termination shall be without liability of
either party (or any shareholder, member, director, officer, employee, agent,
consultant or representative of such party) to the other party to this
Agreement; provided, however, that if such termination shall
result from the willful failure of any party to fulfill a condition to the
performance of the obligations of another party or to perform a covenant of
this Agreement or from a willful breach of any representation or warranty by
any party to this Agreement, such party shall be fully liable for any and all
Losses incurred or suffered by the other parties as a result of such failure or
breach.  The provisions of Sections
6.4 (Confidentiality), 14.1 (Notices), 14.2 (Entire
Agreement), 14.3 (Governing Law and Venue), and 14.11 (Expenses)
shall survive any termination of this Agreement pursuant to this Article XIII.

 

ARTICLE XIV 

MISCELLANEOUS

 

14.1           Notices.  All notices, waiver, requests and other
communications hereunder shall be in writing and shall be delivered by courier
or other means of personal service (including by means of a nationally
recognized courier service or a professional messenger service), or sent by
facsimile or mailed first class, postage prepaid, by certified mail, return
receipt requested, in all cases, addressed as follows:

 

38

 

	
   

  	
  if to the
  Purchaser:

  	
   

  	
  Echo/TMG
  Holdings, LLC

  
	
   

  	
   

  	
   

  	
  c/o Echo
  Global Logistics, Inc.

  
	
   

  	
   

  	
   

  	
  600 West
  Chicago Ave.

  
	
   

  	
   

  	
   

  	
  Suite 830

  
	
   

  	
   

  	
   

  	
  Chicago,
  Illinois 60610

  
	
   

  	
   

  	
   

  	
  Attention:
  Orazio Buzza

  
	
   

  	
   

  	
   

  	
  Fax: (773)
  326-0807

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  	
  Winston & Strawn LLP

  
	
   

  	
   

  	
   

  	
  35 West Wacker Drive

  
	
   

  	
   

  	
   

  	
  Chicago, Illinois 60601

  
	
   

  	
   

  	
   

  	
  Attention: Richard E. Ginsberg

  
	
   

  	
   

  	
   

  	
  Fax: (312) 558-5700

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  if to the Seller:

  	
   

  	
  Transportation Management Group

  
	
   

  	
   

  	
   

  	
  2700 Homestead Road, Unit 201

  
	
   

  	
   

  	
   

  	
  Park City, Utah 84098

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  	
  Hitchcock, Bowman & Schachter

  
	
   

  	
   

  	
   

  	
  Suite 1030 Del Amo Boulevard

  
	
   

  	
   

  	
   

  	
  Torrance, California 90503-3579

  
	
   

  	
   

  	
   

  	
  Attention: Robert Schachter

  
	
   

  	
   

  	
   

  	
  Fax: (310) 540-8734

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  if to the Shareholders:

  	
   

  	
  Walter Buster Schwab

  
	
   

  	
   

  	
   

  	
  c/o Transportation Management Group

  
	
   

  	
   

  	
   

  	
  2700 Homestead Road, Unit 201

  
	
   

  	
   

  	
   

  	
  Park City, Utah 84098

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  and to:

  	
   

  	
  Ryan Renne

  
	
   

  	
   

  	
   

  	
  c/o Transportation Management Group

  
	
   

  	
   

  	
   

  	
  2700 Homestead Road, Unit 201

  
	
   

  	
   

  	
   

  	
  Park City, Utah 84098

  

 

All notices, requests and other
communications shall be deemed given on the date of actual receipt or delivery
as evidenced by written receipt, acknowledgment or other evidence of actual
receipt or delivery to the address.  In
case of service by facsimile, a copy of such notice shall be personally delivered
or sent by registered or certified mail, in the manner set forth above, within
three (3) business days thereafter. 
Either party hereto may from time to time by notice in writing served as
set forth above designate a different address or a different or additional
person to which all such notices or communications thereafter are to be given.

 

14.2           Entire Agreement.  This Agreement (including without limitation
the schedules and exhibits hereto) and the agreements, documents and
instruments to be executed and delivered pursuant hereto or thereto are
intended to embody the final, complete and exclusive agreement among the
parties with respect to the sale of the Purchased Assets and related 

 

39

 

transactions;
are intended to supersede all prior letters of intent, agreements,
understandings and representations (whether written or oral) with respect
thereto; and may not be contradicted by evidence of any such prior or
contemporaneous agreement, understanding or representation, whether written or
oral.

 

14.3           Governing Law
and Venue.  THIS AGREEMENT IS TO BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED WHOLLY WITHIN SUCH STATE, AND
WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.  ANY SUIT BROUGHT HEREON AND ANY AND ALL LEGAL
PROCEEDINGS TO ENFORCE THIS AGREEMENT, WHETHER IN CONTRACT, TORT, EQUITY OR
OTHERWISE, SHALL BE BROUGHT IN THE STATE OR FEDERAL COURTS SITTING IN THE STATE
OF ILLINOIS, THE PARTIES HERETO HEREBY WAIVING ANY CLAIM OR DEFENSE THAT SUCH
FORUM IS NOT CONVENIENT OR PROPER.  EACH
PARTY HEREBY AGREES THAT ANY SUCH COURT SHALL HAVE IN PERSONAM JURISDICTION
OVER IT, CONSENTS TO SERVICE OF PROCESS IN ANY MANNER PRESCRIBED IN SECTION 14.1
OR IN ANY OTHER MANNER AUTHORIZED BY ILLINOIS LAW, AND AGREES THAT A FINAL
JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
SPECIFIED BY LAW.

 

14.4           Binding Effect.  This Agreement and the rights, covenants,
conditions and obligations of the respective parties hereto and any instrument
or agreement executed pursuant hereto shall be binding upon the parties and
their respective successors, assigns and legal representatives.  Neither this Agreement, nor any rights or
obligations of any party hereunder, may be assigned by a party without the
prior written consent of the other party.

 

14.5           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.  A facsimile signature shall be acceptable as
an originally executed signature for all purposes of this Agreement.  In making proof of this Agreement it shall
not be necessary to produce or account for more than one counterpart.

 

14.6           Further Assurances.  Each party hereto agrees to promptly execute
and deliver all further instruments and documents and take all further action
necessary or appropriate or that the other party may reasonably request in
order to effect the purposes of this Agreement and the other agreements
delivered in connection herewith.

 

14.7           Section Headings.  The section headings of this Agreement are
for convenience of reference only and shall not be deemed to alter or affect
any provision hereof.

 

14.8           Gender; Tense,
Etc.  Where the context or
construction requires, all words applied in the plural shall be deemed to have
been used in the singular, and vice versa; the masculine shall include the
feminine and neuter, and vice versa; and the present tense shall include the
past and future tense, and vice versa.

 

40

 

14.9           Severability.  In the event that any provision or any part
of any provision of this Agreement shall be void or unenforceable for any
reason whatsoever, then such provision shall be stricken and of no force and
effect. However, unless such stricken provision goes to the essence of the
consideration bargained for by a party, the remaining provisions of this
Agreement shall continue in full force and effect, and to the extent required,
shall be modified to preserve their validity.

 

14.10         No Third Party
Rights.

 

(a)             Nothing in this
Agreement, whether express or implied, is intended to confer any rights or
remedies under or by reason of this Agreement on any person or entity other
than the parties to it and their respective successors in interest and assigns,
nor is anything in this Agreement intended to relieve or discharge the
obligation or liability of any third persons to any party to this Agreement,
nor shall any provision give any third persons any right of subrogation or
action over against any party to this Agreement.

 

(b)             No provision in
this Agreement shall create any third party beneficiary or other rights in any
employee or former employee (including any beneficiary or dependent thereof) of
Seller in respect of continued employment (or resumed employment) with Seller
and no provision shall create any such rights in any such persons in respect of
any benefits that may be provided, directly or indirectly, under any Employee
Plan or Benefit Arrangement or any plan or arrangement that may be established
by the Purchaser or any of its affiliates. 
No provision of this Agreement shall constitute a limitation on rights
to amend, modify or terminate after the Closing Date any Employee Benefit Plan.

 

14.11         Expenses.  Except as otherwise set forth in this
Agreement, Seller and the Shareholders, on the one hand, and Purchaser, on the
other hand, will each bear their own costs and expenses incurred in connection
with the negotiation and preparation of this Agreement and the consummation and
performance of the transactions contemplated herein; provided, however,
that Seller and the Shareholders shall be solely responsible for (i) any
legal, accounting or other costs or expenses incurred by Seller or any
Shareholder in connection with this Agreement and the transactions contemplated
hereby and (ii) any brokers’, finders’ or referral fees payable by Seller
or any Shareholder in connection with the transactions contemplated hereby.

 

14.12         Amendments; No
Waivers.

 

(a)             Any provision of
this Agreement may be amended prior to the Closing Date if, and only if, such
amendment is in writing and signed by the Purchaser, Seller and the
Shareholders.  Any provision of this
Agreement may be waived if the waiver is in writing and signed by the party to
be bound.

 

(b)             No failure or
delay by either party in exercising any right, power or privilege hereunder
shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other of further exercise thereof or the exercise of any
other right, power or privilege.  The
rights and remedies herein provided shall be cumulative and not exclusive of
any rights or remedies provided by law.

 

41

 

14.13         No Strict Construction.  The language used in this Agreement will be
deemed to be the language chosen by the parties hereto to express their mutual
intent, and no rule of strict construction will be applied against any
party hereto.

 

14.14         Guaranty.  Echo hereby irrevocably and unconditionally
guarantees (the “Guaranty”) to Seller the full and timely payment of any
amounts payable and the prompt performance of all obligations of Purchaser
under this Agreement (for purposes of this Section 20, the “Obligations”)
when and as the same shall become due hereunder.  The Guaranty is a guarantee of payment and
performance and not of collection only.  Seller
acknowledges and agrees that the Obligations are subject to and shall be
determined in accordance with the express terms and conditions of this
Agreement.  The liability of Echo under
the Guaranty is absolute and unconditional and the Guaranty shall be binding
upon Echo and its successors and assigns, shall not be subject to any
counterclaim, setoff, deduction or defense based upon any claim Echo may have
against Seller hereunder or otherwise, and shall remain in full force and
effect without regard to, and shall not be released, discharged or in any way
affected by, any circumstance or condition whatsoever which might otherwise
constitute a legal or equitable discharge or defense of a guarantor; provided,
that any claim under the Guaranty against Echo shall be subject to, and Echo
shall have available to it in defense of any such claim, any and all of
Purchaser’s rights and defenses (including rights of set-off or deduction),
whether arising hereunder or otherwise, in respect of any such claim.  Echo agrees that the Guaranty may be enforced
by Seller without the necessity at any time of resorting to or exhausting any
other remedy or without the necessity at any time of having recourse to this
Agreement.  Echo waives any right now or
hereafter existing requiring Seller, as a condition to proceeding against Echo,
to proceed against Purchaser or any other person.

 

[Signature Page Follows] 

 

42

 

IN WITNESS WHEREOF, the parties hereto have
duly executed this Agreement as of the day and year first above written.

 

	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  ECHO/TMG HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Echo Global Logistics, Inc., its sole
  member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas R. Waggoner

  
	
   

  	
  Name:

  	
  Douglas R. Waggoner

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  MOUNTAIN LOGISTICS, INC. d/b/a

  TRANSPORTATION MANAGEMENT GROUP

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Buster Schwab

  
	
   

  	
  Name:

  	
  Buster Schwab

  
	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  
	
   

  	
  SHAREHOLDERS:

  
	
   

  	
   

  
	
   

  	
  /s/ Walter W. Schwab

  
	
   

  	
  Walter Buster Schwab

  
	
   

  	
   

  
	
   

  	
  /s/ Ryan Renne

  
	
   

  	
  Ryan Renne

  

 

 

[Signature Page to Asset
Purchase Agreement]

 

The undersigned is hereby executing and delivering this Agreement
solely for the purpose of agreeing to the provisions of and accepting any
obligations under Section 14.14 

 

43

 

hereof.

 

	
   

  	
  ECHO:

  
	
   

  	
   

  
	
   

  	
  ECHO GLOBAL LOGISTICS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Douglas R. Waggoner

  
	
   

  	
  Name:

  	
  Douglas R. Waggoner

  
	
   

  	
  Its:

  	
  Chief Executive Officer

  
	
   

  	
   

  

 

[Signature Page to Asset Purchase
Agreement]

 

44

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00141-of-00352.parquet"}]]