Document:

exv10w1

 

Exhibit 10.1

February 5, 2007

Mr. Edward D. Goetz

258 Spruce Circle

Simi Valley, CA 93065

Re:       Change in Position and Termination of Employment Agreement

Dear Ed:

As we have
discussed, effective January 30, 2007, you have resigned as President of BCI Eclipse
Company, LLC (“BCI”) and hereby accept a non-officer position with BCI as a consultant in the
acquisition of new content as described herein.

1. Your Employment Agreement
 dated November 5, 2003, as amended August 4, 2006, is hereby
terminated and superseded by this letter agreement.

2. You will continue to be an employee of BCI but will no longer be an officer of BCI or an
executive officer of Navarre Corporation. You will serve in a full-time capacity with the title of
Consultant, Content Acquisition. You will report directly to Marvin Gleicher and perform duties as
assigned by him. It will be your responsibility to keep that office informed on a timely basis on
your progress with respect to your duties.

3. Your employment shall continue until terminated by either you or BCI. You specifically
understand and agree that your employment hereunder shall be at all times on an “at will” basis,
meaning that either you or BCI can terminate your employment at any time and for any reason, with
or without cause or notice, and nothing contained herein shall be construed as establishing any
other relationship between you and BCI, subject, however, to the terms of paragraph 5 below
regarding severance.

4. Until May 4, 2007, your compensation and benefits will be the same as your current compensation
and benefits under the Employment Agreement. Compensation for continued employment after such date
will be $4,166/month, or an annual salary of $50,000. While you are employed pursuant to this
letter agreement your previous stock option grants will continue to vest and be exercisable,
subject to the terms, conditions and limitations set forth in the agreements that provided for such
grants.

 

 

Mr. Edward D. Goetz

February 5, 2007

Change in Position and Termination of Employment Agreement

Page 2

5. If BCI terminates your employment prior to May 4, 2007 for any reason other than Company Cause
(as defined in the Employment Agreement), or your employment is terminated prior to that date due
to your death or disability (as defined in the Employment Agreement), you will be entitled to
receive the payments described in Paragraph 6 of the Employment Agreement.

6. The Confidentiality, Non-Compete, Non-Solicitation and Non-Disparagement provisions in Paragraph
7 of the Employment Agreement continue to apply and are hereby incorporated herein.

Ed, I hope that you find the foregoing terms acceptable. You may indicate your agreement with these
terms and accept this letter agreement by signing below.

	 	 	 	 	 
	Very truly yours,

BCI ECLIPSE COMPANY, LLC

 	 
	/s/ CARY L. DEACON
 	 
	Cary L. Deacon 	 
	Chief Strategic Officer 	 
	 

	 	 	 	 	 
	 	ACCEPTED AND AGREED:

 	 
	 	  	/s/ EDWARD D. GOETZ
 	 
	 	 	Edward D. Goetz 	 
	 	 	 
Date: February 5, 2007Exhibit 10.21 (Asset Purchase Agreement)

    
      

    

    Exhibit
      10.21

    

      ASSET
        PURCHASE AGREEMENT

      

      This
        Asset Purchase Agreement (this "Agreement") is made and
        entered into as of the 6th day of October, 2006 (the "Effective Date" or
        "Closing Date") by and among Erin Truckways, Ltd. d/b/a Digby Truck Line,
        Inc.,
        a Delaware corporation ("Digby"), Digby's sole shareholder, Cynthia J. Bedore
        (the "Shareholder") (Digby and the Shareholder are referred to herein
        collectively, and when the context so requires, individually as "Seller"),
        and
        Celadon Trucking Services, Inc., a New Jersey corporation (the
        "Purchaser").

      

      RECITALS

      

      Digby
        owns and operates a commercial van trucking business that
        operates and provides services to customers throughout the United States
        (the
        "Business").

      

      Purchaser
        desires to purchase certain assets and assume certain
        liabilities of the Business, and Seller desires to sell such assets and assign
        such liabilities to Purchaser upon the terms and conditions set forth in
        this
        Agreement.

      

      Seller,
        singly or collectively, constitutes the sole legal and
        beneficial owner(s) of the Purchased Assets (as hereinafter defined).

      

      NOW,
        THEREFORE, in consideration of the mutual promises and
        covenants contained in this Agreement, the parties hereby agree as
        follows:

      

      1.     PURCHASE
        AND SALE
        OF ASSETS.

      

      1.1     Purchase
        and
        Sale.

      

      (a)     
Simultaneous
        with the execution
        of this Agreement, Purchaser shall purchase from Seller, and Seller shall
        sell
        to Purchaser, all of Seller's right, title and interest in and to the assets
        described on Exhibit A, which is attached to this Agreement and incorporated
        by
        this reference herein (collectively the "Purchased Assets").

      

      (b)     
Notwithstanding
        anything in this
        Agreement to the contrary, the Purchased Assets shall not include any item
        not
        specifically identified in Section 1.1(a) (the "Excluded Assets"). The Excluded
        Assets shall include, without limitation, the following:

      

      (i)     
Seller's
        articles of
        incorporation, bylaws, minute books, income tax returns, books and
        records;

      

      (ii)    
All
        cash and cash equivalents,
        including cash on hand or in bank accounts, certificates of deposit, commercial
        paper and securities;

      

      (iii)   
All
        governmental permits that are not
        transferable by the terms thereof or by operation of law;

      

      (iv)   
All
        of Seller's customer accounts
        receivables, notes receivable, negotiable instruments, chattel paper and
        driver
        receivables;

      

      (v)    
All
        of Seller's supplies, furniture,
        fixtures and inventories;

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (vi)   
All
        of Seller's real estate, including any
        buildings and improvements owned by Seller and all real estate leases;

      

      (vii) 
All
        of Seller's prepaid amounts, insurance policies
        (including any premium refunds), insurance proceeds, deposits, advances,
        tax
        refunds, rights to payments under letters of credit and/or other prepaid
        expenses;

      

      (viii) All
        of Seller's additional property, assets, capital
        stock, rights, claims, causes of action, contracts, records and goodwill
        relating to the Business other than the Purchased Assets; and

      

      (ix)   Seller's
        rights under this Agreement and the
        other agreements, certificates and instruments to be executed by Seller in
        connection with or pursuant to this Agreement.

      

      1.2     Excluded
        Liabilities. Purchaser does not assume and shall not be responsible for any
        liabilities or obligations of Seller, of any kind or nature, whether or not
        relating to the Business or the Purchased Assets, whether known or unknown,
        absolute, accrued, contingent or otherwise, or whether due or to become due,
        arising out of events or transactions or facts occurring on, prior to, or
        after
        the Effective Date (collectively the "Excluded Liabilities"), including,
        but not
        limited to, the following Excluded Liabilities:

      

      (a)     
all
        liabilities and obligations
        of any kind existing as of the Effective Date owed or owing by the Business
        to
        any shareholder of Digby and/or any affiliate of either Seller;

      

      (b)     
all
        liabilities and obligations
        relating to current or former employees, agents, consultants or other
        independent contractors of the Seller, whether or not such persons are employed
        by the Purchaser after the Effective Date, relating to services performed,
        benefit accruals or claims accrued or incurred prior to the Effective Date
        or
        with respect to employee benefit plans, programs or arrangements at any time
        on
        or after the Effective Date, including but not limited  to, any "employee
        benefit plan," as defined in Section 3(3) of the Employee Retirement Income
        Security Act of 1974, as amended, ("ERISA") and all retirement, stock, stock
        option, welfare benefit, savings, deferred compensation, incentive compensation,
        paid time off, severance pay, salary continuation, disability, fringe benefit,
        compensation, accrued payroll, accrued vacation pay, sick leave, severance,
        worker's compensation, unemployment compensation, employee welfare or retirement
        benefits (including any liability or obligation of the Seller under any welfare
        plan or policy for continuing health coverage), and other employee benefit
        arrangements, plans, policies, or practices maintained, contributed to, or
        required to be contributed by the Seller or any ERISA Affiliate (defined
        as any
        person, entity, any trade or business (whether or not incorporated) that
        is
        treated as a single employer with the Seller under Section 414 of the Code)
        or
        with respect to which the Seller or any ERISA Affiliate may have any liability
        (collectively the "Benefit Plans") or obligations under any employment agreement
        or arrangement, liabilities under the Worker Adjustment and Retraining
        Notification ("WARN") Act and obligations or agreements to rehire or give
        preferential treatment to laid-off or terminated employees;

      

      
        
          
          

        

        
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      (c)     
all
        liabilities and obligations,
        whether absolute, accrued, contingent or otherwise, for federal, state, county,
        local, foreign or other income, sales, use, real estate, property, excise,
        employee payroll or other taxes or assessments (including interest and
        penalties) of any kind whatsoever relating to the Business for periods up
        to and
        including the Effective Date and any income taxes resulting from the
        transactions contemplated by this Agreement;

      

      (d)     
any
        and all damages, losses,
        liabilities, actions, claims, costs and expenses (including, without limitation,
        closure costs, fines, penalties, expenses of investigation and remediation
        and
        ongoing monitoring and reasonable attorneys' fees) directly or indirectly
        based
        upon, arising out of, resulting from or relating to (i) any violation of
        any
        Environmental Law by the Seller or any person or entity acting on behalf
        of the
        Seller or the person from or through which the Seller acquired title on or
        prior
        to the Effective Date (including, without limitation, any failure to obtain
        or
        comply with any permit, license or other operating authorization under
        provisions of any Environmental Law), (ii) any and all liabilities under
        any
        Environmental Law arising out of or otherwise in respect of any act, omission,
        event, condition or circumstance occurring or existing in connection with
        the
        Business or the Purchased Assets on or prior to the Effective Date (including,
        without limitation, liabilities relating to (X) removal, remediation,
        containment, cleanup or abatement of the presence of any Regulated Substance,
        whether on-site or off-site and (Y) any claim by any third party, including
        without limitation, tort suits for personal or bodily injury, property damage
        or
        injunctive relief; and

      

      (e)     
all
        liabilities and obligations
        arising out of any lawsuit, action, proceeding, inquiry, claim, order or
        investigation by or before any governmental authority related to the Business
        arising out of events, transactions, facts, acts or omissions which occurred
        prior to or on the Effective Date, including, without limitation, personal
        injury or property damage, product liability or strict liability.

      

      1.3     Purchase
        Price. The aggregate purchase price to be paid by Purchaser to Seller for
        the Purchased Assets ("Purchase Price") shall be $21,200,000.00, subject
        to any
        post-Closing adjustment required by Sections 1.5 of this Agreement. 

      

      1.4     Payment
        of the
        Purchase Price. The Purchase Price shall be payable by Purchaser upon
        execution of this Agreement to Boult, Cummings, Conners & Berry, PLC (the
        "Escrow Agent") to be held in a non-interest bearing escrow account subject
        to
        the terms of the Equipment Payoff Escrow Agreement dated the Effective Date
        among Seller, Purchaser and Escrow Agent. A copy of the Equipment Payoff
        Escrow
        Agreement is attached hereto as Exhibit B and incorporated by this reference
        herein.  Once the equipment vendors and lenders on the
        purchased assets have been paid from the Equipment Payoff Escrow, the remaining
        balance, if any, shall be paid to Seller or at Seller's direction by wire
        transfer or other form of readily available funds.

      

      
        
          
          

        

        
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      1.5     Post-Closing
        Adjustments. 

      

      Within
        forty five (45) days following the Effective Date Seller
        shall deposit with the Escrow Agent the sum of $300,000.00 (the "Escrow Amount")
        to be held in an interest-bearing, escrow account subject to the terms of
        the
        Escrow Agreement dated the Effective Date among Seller, Purchaser and Escrow
        Agent. A copy of the Escrow Agreement is attached hereto as Exhibit C and
        incorporated by this reference herein (the "Escrow Agreement"). Seller's
        obligation to deposit the Escrow Amount shall be secured by a security interest
        in Seller's accounts receivable granted pursuant to a security agreement
        in the
        form attached hereto as Exhibit D and incorporated herein by reference. As
        soon
        as practicable following the Effective Date, Purchaser, at Purchaser's expense,
        shall have the condition of all rolling stock included in the Purchased Assets
        inspected by an independent inspector (the "Inspections") to (i) determine
        whether all units meet the Department of Transportation ("DOT") vehicle
        inspection requirements and (ii) to determine whether any units have damage
        (excluding normal wear and tear) in excess of $500.00 for tractor units and
        $250.00 for trailer units ("Excess Damage"). For all tractors included in
        the
        rolling stock, the Inspections shall be performed by the earlier of (x) the
        third dispatch of the tractor immediately following the Effective Date or
        (y)
        the thirtieth (30th) day following the Effective Date. Each tractor
        Inspection shall be performed by a certified Freightliner dealership located
        near the Purchaser's turn-in locations for such tractor. For all trailers
        included in the rolling stock, the Inspections shall be performed by the
        earlier
        of (1) the third dispatch of the trailer immediately following the Effective
        Date or (2) the sixtieth (60th) day following the Effective Date.
        Each trailer Inspection shall be performed by a certified GE Equipment Services
        facility located near the Purchaser's turn-in locations for such trailer.
        Immediately upon completion of the Inspections, but in any event within sixty
        (60) days of the Effective Date, Purchaser shall submit to Seller a written
        report (the "Inspection Report") regarding the condition on the Effective
        Date
        of each item of rolling stock included in the Purchased Assets that failed
        to
        meet the DOT vehicle inspection requirements and/or had Excess Damage (the
        "Nonconforming Items"). The Inspection Report shall include the following
        information as of the Effective Date for each of the Nonconforming Items:

      

      (a)     
The
        description of the
        Nonconforming Item on Exhibit A of this Agreement, including any vehicle
        identification number or other identifying number.

      

      (b)     
A
        detailed description of (i)
        the violation(s) of DOT vehicle inspection requirements and/or (ii) the Excess
        Damage that existed on the Effective Date.

      

      (c)     
For
        each tractor, the good faith
        estimate of the Freightliner dealership that performed the Inspection, and
        for
        each trailer, the good faith estimate of the GE Equipment Services facility
        that
        performed the Inspection of the dollar amount of repairs in excess of $500.00
        for each tractor and the $250.00 for each trailer required for each
        Nonconforming Item to meet the requirements set forth in this Section 1.5
        as of
        the Effective Date (the "Nonconforming Amount"). These dollar amounts are
        thresholds and are not to be considered deductible amounts for purposes of
        calculating repair expenses. 

      

      (d)     
The
        total of all Nonconforming
        Amounts claimed by Purchaser.

      

      
        
          
          

        

        
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      Seller
        shall promptly review the Inspection Report and notify
        Purchaser in writing regarding any disputed Excess Damage Amounts. Within
        ninety
        (90) days immediately following the Effective Date, Purchaser and Seller
        shall
        use commercially reasonable efforts to resolve such disputes. If the parties
        are
        unable to resolve such disputes, the dispute resolution provisions of Section
        8.8 shall apply. If the Nonconforming Amount for any individual tractor exceeds
        $10,000.00 and/or if the Nonconforming Amount for any individual trailer
        exceeds
        $2,000.00 then Seller may, in its sole discretion, elect to (i) accept the
        Nonconforming Amount or (ii) substitute as the Nonconforming Amount for such
        Nonconforming Item the amount stated on Exhibit A for such Nonconforming
        Item.

      

      As
        soon as practicable after the Effective Date, but in any event
        within ten (10) business days immediately following the Effective Date,
        Purchaser shall take inventory of the Rolling Stock to determine its location.
        Purchaser shall promptly submit to Seller a written list of any and all missing
        Rolling Stock (the "Missing Rolling Stock"). Until the expiration of the
        45-day
        inspection period, Purchaser shall use diligent efforts to locate the Missing
        Rolling Stock. Upon the earlier of the first dispatch by Purchaser of any
        item
        of Missing Rolling Stock or Purchaser's discovery of the location of such
        item
        of Missing Rolling Stock, Purchaser shall promptly notify Seller and such
        item
        of Missing Rolling Stock shall be removed from the list of Missing Rolling
        Stock. All items of Missing Rolling Stock that are not dispatched and/or
        located
        by Purchaser by the 60th day following the Effective Date shall be
        treated as Nonconforming Items and the dollar amount included on Exhibit
        A for
        each item of Missing Rolling Stock shall be treated as a Nonconforming Amount.
        

      

      Purchaser
        shall be entitled to a credit against the Purchase Price
        (the "Post-Closing Credit") for (y) the amount of any unpaid repair bills,
        towing charges, storage expenses and any other expenses Purchaser is required
        to
        pay to take possession, due on the Effective Date that are applicable to
        Rolling
        Stock in the possession on the Effective Date of the person or entity that
        performed the repairs and (z) the aggregate Nonconforming Amount (including
        amounts for Missing Rolling Stock) agreed upon by the parties. Notwithstanding
        anything in this Agreement to the contrary, the amount of the Post-Closing
        Credit shall be limited to $300,000.00. Purchaser's sole remedy for Damaged
        Items and/or Missing Rolling Stock shall be the Post-Closing Credit.
        Notwithstanding anything in this Agreement to the contrary, Purchaser shall
        not
        be entitled to a Post-Closing Credit for any item of Rolling Stock set forth
        on
        Schedule 1.5.

      

      If
        the Post-Closing Credit is less than $300,000.00, then the
        Escrow Agent shall (i) return the portion of the Escrow Amount equal to the
        Post-Closing Credit, plus accrued interest on the returned portion, to Purchaser
        and (ii) pay the remainder of the Escrow Amount, plus accrued interest on
        the
        remainder portion, to Seller. If the Post-Closing Credit is equal to or greater
        than $300,000.00, then the Escrow Agent shall return the entire Escrow Amount,
        plus accrued interest, to Purchaser.

      

      As
        soon as practicable, but in any event within ten (10) days
        after the parties agree on the amount of the Post-Closing Credit, Purchaser
        shall return to Seller (a) all Nonconforming Items for which Seller elected
        to
        substitute the Exhibit A amount as the Nonconforming Amount in the calculation
        of the Post-Closing Credit and (b) all title certificates, lien releases
        and/or
        other documents relating to the Missing Rolling Stock.

      
        
          
          

        

        
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      1.6     Allocation
        of
        Income and Expenses. All revenue from loads picked up prior to 11:59 p.m.
        CDT on the Effective Date shall belong to Seller, and all revenue from loads
        picked up after 11:59 p.m. CDT on the Effective Date (the "Post-Closing Loads")
        shall belong to Purchaser. As soon as reasonably practicable after the Effective
        Date, but in any event within thirty (30) days following the Effective Date,
        representatives of Seller and Purchaser shall examine all relevant books
        and
        records of the Business as of the Effective Date to determine (i) the time
        and
        date of delivery and the division of revenue from loads in transit immediately
        prior to and/or immediately after the Effective Date and (ii) the amount
        of
        direct expenses incurred by Seller for Post-Closing Loads (the "Direct
        Expenses"). Direct Expenses shall be calculated at One Dollar ($1.00) per
        mile
        for the billed miles and return miles of the Post-Closing Load. Purchaser
        shall
        promptly reimburse Seller for the Direct Expenses within ten (10) business
        days
        after determination. If the parties are unable to agree on the amount of
        the
        reimbursement for Direct Expenses, the dispute resolution provisions of Section
        8.8 shall apply.

      

      1.7     Allocation
        of
        Purchase Price. The Purchase Price shall be allocated among the Purchased
        Assets as set forth on Schedule 1.7 which is attached hereto and incorporated by
        this reference herein. Seller and Purchaser each agree to comply with the
        requirements of Section 1060 of the Internal Revenue Code and to report the
        federal, state and local income and other tax consequences of the transactions
        contemplated herein in a manner consistent with the purchase price allocation
        set forth on Schedule 1.7.

      

      1.8     Sales,
        Use and
        Other Taxes. In the event that any sales, use, transfer, license, title or
        other similar taxes or charges are assessed on or after the Effective Date
        as a
        result of the transactions described in this Agreement, upon transfer and/or
        reissue of vehicle titles or at any time thereafter on the transfer of any
        of
        the Purchased Assets, then in each instance such taxes or charges incurred
        as a
        result of the transactions contemplated hereby shall be paid by Purchaser.
        

      

      2.     CLOSING.

      

      Simultaneous
        with the execution of this Agreement on the Effective
        Date, Seller has executed and delivered to Purchaser such lease assignments,
        bills of sale and instruments of assignment and assumption as are necessary
        to
        convey title to the Purchased Assets and Purchaser has paid the Purchase
        Price
        to Seller and the Escrow Agent. All such actions shall be deemed to have
        been
        taken simultaneously at the time the last of any such actions is taken or
        completed.

      

      3.     REPRESENTATIONS
        AND WARRANTIES OF SELLER. Seller hereby represents and warrants to Purchaser
        as follows: 

      

      3.1     Organization
        and
        Good Standing. Digby is a corporation duly incorporated, validly existing
        and in good standing under the laws of the state of Delaware. 

      

      3.2     Corporate
        Power. Seller has the corporate power, authority and legal right to execute,
        deliver and perform this Agreement.

      

      
        
          
          

        

        
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      3.3     Authorization,
        Binding Effect. The execution, delivery and performance of this Agreement
        and the other agreements, documents and instruments required to be delivered
        by
        Seller in accordance with the provisions of this Agreement (collectively
        the
        "Seller Documents") and the underlying transactions contemplated by this
        Agreement and the Seller Documents have been duly authorized by Seller. This
        Agreement and the Seller Documents have been duly executed and delivered
        by
        Seller. This Agreement is and the Seller Documents are the legal, valid and
        binding obligations of Seller enforceable in accordance with their terms
        except
        as their enforceability may be limited by laws and/or equitable principles
        relating to or affecting creditors' rights. 

      

      3.4     No
        Conflicts;
        Consents and Approvals. The execution and delivery of this Agreement and the
        Seller Documents, the consummation of the transactions herein and therein
        contemplated, and the performance of, fulfillment of and compliance with
        the
        terms and conditions hereof and thereof by Seller do not and will not conflict
        with or result in a breach of the articles of incorporation or the bylaws
        of
        Seller. No authorization, approval, consent of, and no registration or filing
        with, any governmental or regulatory official body or authority is required
        in
        connection with Seller's execution, delivery or performance of this Agreement
        or
        the Seller Documents.

      

      3.5     Title
        to
        Properties. Seller has good and marketable title to the Purchased Assets,
        except as to any Purchased Assets held under lease. On the Effective Date,
        Purchaser will acquire all of Seller's right, title and interest in and to
        all
        of the Purchased Assets, free and clear of any lien, claim or encumbrance.
        Seller shall use commercially reasonable efforts to cause the original title
        certificates for all rolling stock included in the Purchased Assets to be
        delivered to Purchaser within five (5) business days following the Effective
        Date.

      

      3.6     Brokers
        and
        Finders. Except for Bryan Financial Services, Inc., Seller has not engaged
        any person or entity to act or render services as a broker, finder or similar
        capacity that would be entitled to receive a fee and/or commission from Seller
        in connection with the transactions contemplated herein. No person or entity
        has, as a result of any agreement or action by Seller, any right or valid
        claim
        against Purchaser or any of Purchaser's affiliates for any commission, fee
        or
        other compensation as a broker or finder, or in any similar capacity in
        connection with the transactions contemplated herein.

      

      3.7     Adverse
        Events. To Seller's knowledge, without investigation and subject to the
        impact of the transactions contemplated by this Agreement and any other asset
        sale transactions Seller has and/or intends to enter into, Seller is not
        aware
        of any past, present or impending action or event, or threatened action or
        event, that would cause a material adverse affect on the Business in its
        current
        condition on the Effective Date.

      

      3.8     Post-Closing
        Actions. To the extent such efforts would not conflict with the interests of
        Seller's creditors and/or shareholders, violate the terms of any agreement
        to
        which Seller is a party and/or violate any statute, law, rule, regulation,
        license, permit or other governmental authority, Seller shall use commercially
        reasonable efforts to reduce any expense and/or damage Purchaser might incur
        as
        a result of any voluntary bankruptcy filing or assignment for the benefit
        of
        creditors by Seller after the Effective Date.

      
        
          
          

        

        
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      4.     REPRESENTATIONS
        AND WARRANTIES OF PURCHASER. Purchaser hereby represents and warrants to
        Seller as follows:

      

      4.1     Organization
        and
        Good Standing. Purchaser is a duly organized, validly existing and in good
        standing under the Laws of the State of New Jersey.

      

      4.2     Corporate
        Power
        and Authority. Purchaser has the corporate power and authority to execute,
        deliver and perform this Agreement.

      

      4.3     Authorization,
        Binding Effect. The execution, delivery and performance of this Agreement
        and the other agreements, documents and instruments required to be delivered
        by
        Purchaser in accordance with the provisions of this Agreement (collectively
        the
        "Purchaser Documents") and the underlying transactions contemplated by this
        Agreement and the Purchaser Documents have been duly authorized by Purchaser.
        This Agreement and the Purchaser Documents have been duly executed and delivered
        by Purchaser. This Agreement is and the Purchaser Documents are the legal,
        valid
        and binding obligations of Purchaser enforceable in accordance with their
        terms
        except as their enforceability may be limited by laws and/or equitable
        principles relating to or affecting creditors' rights. 

      

      4.4     Brokers
        and
        Finders. Purchaser has not engaged any Person to act or render services as a
        broker, finder or similar capacity in connection with the transactions
        contemplated herein and no Person has, as a result of any agreement or action
        by
        Purchaser any right or valid claim against Seller, or any of its affiliates
        for
        any commission, fee or other compensation as a broker or finder, or in any
        similar capacity in connection with the transactions contemplated herein.

      

      5.     CERTAIN
        COVENANTS.

      

      5.1     Consents
        and
        Approvals. 

      

      (a)     
Each
        of the parties hereto
        shall, and shall cause each of its affiliates to, use its reasonable efforts
        in
        good faith to obtain at the earliest practicable date any approvals,
        authorizations and consents, including but not limited to the third party
        consents necessary to consummate the transactions contemplated by this Agreement
        and take such actions as the other parties may reasonably request to consummate
        the transactions contemplated by this Agreement. For a period of up to thirty
        (30) days immediately following the Effective Date, Seller shall use
        commercially reasonable efforts (which shall not require Seller to incur
        any
        expense) to cooperate with Purchaser in connection with Purchaser's application
        for the transfer, renewal or issuance of any permits, licenses, plates,
        approvals or authorizations required to transfer the Purchased Assets from
        Seller to Purchaser.

      

      (b)     
Nothing
        in this Section 5.1
        shall require a party to expend any monies to obtain any approval or consent
        required hereunder, except for customary attorneys' fees and filing fees
        incident to the transactions contemplated hereby or as otherwise specifically
        required under this Agreement.

      
        
          
          

        

        
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      5.2     Employees.

      

      (a)     
Schedule
        5.2(a) (the "Driver
        List") sets forth the name of and other employment information for each employee
        driver, owner-operator driver and lease-purchase driver of Seller (collectively
        the "Drivers") on the Effective Date. Notwithstanding anything in this Agreement
        to the contrary, Purchaser shall, on the Effective Date, offer employment
        (at
        the base compensation and wage levels and on other terms and conditions as
        the
        Purchaser shall determine in its sole discretion) to all Drivers on the Driver
        List, except those Drivers that fail to meet Purchaser's standard driver
        employment requirements. Simultaneous with the execution of this Agreement,
        Purchaser shall deliver to Seller a list of the Drivers to whom Purchaser
        intends to make offers of employment (the "Hired Driver List") and a list
        of the
        Drivers to whom Purchaser does not intend to make offers of employment (the
        "Non-hired Drivers List"). By 5:00 p.m. CDT on the fifth (5th)
        business day immediately following the Effective Date, Purchaser shall deliver
        to Seller a list of the Drivers that accepted employment with Purchaser.

      

      (b)     
On
        the Effective Date, Seller
        and/or Purchaser shall contact all of the Drivers on the Non-hired Driver
        List
        and instruct them to deliver to the nearest Purchaser turn-in location any
        rolling stock and/or other assets included in the Purchased Assets. The
        following Purchaser turn-in locations shall be used: Richmond, Virginia,
        Indianapolis, Indiana, Waxahachie and Laredo, Texas and Nashville, Tennessee.
        Notwithstanding anything in this Agreement to the contrary, the Non-hired
        Drivers shall not be deemed to be employees of Purchaser for any reason,
        including but not limited to repositioning the rolling stock to Purchaser's
        turn-in locations. Purchaser shall arrange and pay for the reasonable
        transportation expense to relocate all Non-hired Drivers from the Purchaser
        turn-in location to the Non-Hired Driver's home. Within ten (10) business
        days
        following the Effective Date, (i) Seller and Purchaser shall calculate and
        agree
        on the amount of repositioning expense incurred by Seller at the rate of
        One
        Dollar ($1.00) per billed mile and return mile to get the rolling stock
        delivered to the Purchaser's turn-in locations and (ii) Purchaser shall
        reimburse Seller at the rate of One Dollar ($1.00) per billed mile and return
        mile for repositioning expenses incurred by Seller. If the parties are unable
        to
        agree on the amount of the reimbursement for repositioning expenses, the
        dispute
        resolution provisions of Section 8.8 shall apply.

      

      (c)     
To
        facilitate the repositioning
        of rolling stock in the possession of Non-Hired Drivers on the Effective
        Date,
        Purchaser shall lease all such rolling stock to Seller from the Effective
        Date
        until such rolling stock is delivered to one of the Purchaser's turn-in
        locations. 

      

      (d)     
Schedule
        5.2(d) (the "Non-Driver
        List") sets forth the name of and other employment information for each
        non-driver employee of Seller (the "Non-Drivers") on the Effective Date.
        Simultaneous with the execution of this Agreement, the Purchaser shall deliver
        to Seller a list of the Non-Drivers to whom Purchaser intends to offer
        employment (at the base compensation and wage levels and on other terms and
        conditions as the Purchaser shall determine in its sole discretion). By 5:00
        p.m. CDT on the fifth (5th) business day immediately following the
        Effective Date, Purchaser shall deliver to Seller a list of the Non-Drivers
        that
        accepted employment with Purchaser.

      
        
          
          

        

        
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      (e)     
On
        or after the Effective Date,
        Seller shall send the notices required by the Worker Adjustment and Retraining
        ("WARN") Act and be responsible for any costs and expenses connected therewith.
        

      

      (f)     
Notwithstanding
        anything set
        forth below or herein to the contrary, (i) nothing in this Agreement shall
        create any obligation on the part of the Purchaser to continue the employment
        of
        any employee hired from Seller for any definite period following the Effective
        Date, and (ii) nothing in this Agreement shall preclude the Purchaser from
        altering, amending, or terminating any of its employee benefit plans, or
        the
        participation of any of its employees in such plans, at any time. No employee
        or
        former employee of the Seller, including any beneficiary or dependent thereof,
        or any other person not a party to this Agreement, shall be entitled to assert
        any claim hereunder as a third-party beneficiary to this Agreement.

      

      5.3     Driver
        Escrow
        Accounts. Within thirty (30) days after Seller receives the list of Drivers
        that accepted employment from Purchaser, Seller shall pay each Driver hired
        by
        Purchaser an amount equal to the difference between (i) the driver escrow
        amount, if any, held by Seller on the Effective Date and (ii) any amounts
        the
        Driver owes Seller on the Effective Date. 

      

      5.4     Collection
        of
        Seller Account Receivables. 

      

      (a)     
From
        and after the Effective
        Date, Purchaser shall provide Seller with reasonable assistance with respect
        to
        Seller's collection of its existing accounts receivables associated with
        the
        Business and which are not Purchased Assets. Within five (5) days of receipt,
        Purchaser shall remit to Seller all payments received by Purchaser from
        customers for revenue that accrued prior to the Effective Date (which, for
        the
        avoidance of doubt, shall exclude revenues relating to Post-Closing Loads).
        

      

      (b)     
From
        and after the Effective
        Date, Seller shall provide Purchaser with reasonable assistance with respect
        to
        Purchaser's collection of accounts receivables associated with the Business.
        Within five (5) days of receipt, Seller shall remit to Purchaser all payments
        received by Seller from customers for revenue that accrued after the Effective
        Date (which, for the avoidance of doubt, shall include revenues relating
        to
        Post-Closing Loads). 

      

      (c)     
For
        not less than 180 days after
        the Effective Date, Purchaser and Seller shall keep accurate records of all
        payments received in connection with the Business and allow each other
        reasonable access to such records for the purpose of verifying the amount
        and
        application of such payments to the period before or after the Effective
        Date.

      

      
        
          
          

        

        
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      5.5     "As
        Is"
        Transaction. Purchaser hereby acknowledges and agrees that, except as
        otherwise expressly provided in this Agreement, Seller makes no representations
        or warranties whatsoever, express or implied, with respect to any matter
        relating to the Purchased Assets, including, without limitation, income to
        be
        derived or expenses to be incurred in connection with the Purchased Assets,
        the
        physical condition of any of the Purchased Assets, the value of the Purchased
        Assets (or any portion thereof), the transferability of the Purchased Assets,
        THE MERCHANTABILITY OR FITNESS OF THE PERSONAL PROPERTY OR ANY OTHER PORTION
        OF
        THE PURCHASED ASSETS FOR ANY PARTICULAR PURPOSE, OR ANY OTHER MATTER OR THING
        RELATING TO THE PURCHASED ASSETS OR ANY PORTION THEREOF. WITHOUT IN ANY WAY
        LIMITING THE FOREGOING, SELLER HEREBY DISCLAIMS ANY WARRANTY, EXPRESS OR
        IMPLIED, OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE AS TO ANY
        PORTION OF THE PURCHASED ASSETS. Purchaser further acknowledges that Purchaser
        has conducted an independent inspection and investigation of the physical
         condition of the Purchased Assets and all such other matters relating to
        or affecting the Purchased Assets as Purchaser deemed necessary or appropriate
        and that in proceeding with its acquisition of the Purchased Assets, except
        for
        any representations and warranties expressly set forth in this Agreement,
        Purchaser is doing so based solely upon such independent inspections and
        investigations. ACCORDINGLY, EXCEPT WITH RESPECT TO ANY REPRESENTATIONS AND
        WARRANTIES OF SELLER EXPRESSLY SET FORTH IN THIS AGREEMENT, PURCHASER WILL
        ACCEPT THE PURCHASED ASSETS ON THE EFFECTIVE DATE "AS IS," "WHERE IS," AND
        "WITH
        ALL FAULTS." Purchaser hereby irrevocably waives all claims against Seller
        with
        respect to the Purchased Assets, other than the Post-Closing Credit and/or
        claims for breach of the representations, warranties and covenants specifically
        set forth in this Agreement. Notwithstanding the foregoing and subject to
        any
        manufacturer restrictions, Seller shall use commercially reasonable efforts
        to
        assign to Purchaser any and all manufacturers' warranties applicable to the
        Purchased Assets if such manufacturers' warranties are transferable.
        Notwithstanding anything contained in this Section 5.5 to the contrary, nothing
        in this Section 5.5 shall limit Purchaser's right to conduct the Inspections
        or
        to make claims against the Escrow Amount for any Post-Closing Credit resulting
        from such Inspections.

      

      5.6     Transition
        Services. For a period of thirty (30) days immediately following the
        Effective Date, Seller shall (i) continue to employ the Non-Drivers not offered
        employment by Purchaser and required for the transition activities and (ii)
        use
        reasonable efforts to assist Purchaser with transition of the Business from
        Seller to Purchaser. Purchaser shall reimburse Seller for (a) the cost of
        continuing to employ the Non-Drivers that are required for transition activities
        for this 30-day period and (b) other direct and indirect expenses incurred
        by
        Seller during the 30-day transition period.

      

      5.7     Employment
        and
        Non-Compete Agreements. At the Closing, Cynthia J. Bedore and James F. Digby
        shall execute and deliver a consulting agreement in the form attached hereto
        as
        Exhibit E (the "Cynthia J. Bedore and James F. Digby Consulting Agreement"),
        Cynthia J. Bedore shall execute and deliver a non-competition agreement in
        the
        form attached hereto as Exhibit F (the "Cynthia J. Bedore Non-Compete
        Agreement") and James F. Digby shall execute and deliver a non-competition
        agreement in the form attached hereto as Exhibit G (the "James F. Digby
        Non-Compete Agreement"). 

      
        
          
          

        

        
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      6.     INDEMNIFICATION.

      

      6.1     Indemnification
        of
        Purchaser. Subject to the limitations set forth in Sections 6.3 and 6.4,
        Seller shall indemnify and hold Purchaser harmless from, against, for and
        in
        respect of (i) any and all damages, losses, settlement payments, obligations,
        liabilities, claims, actions or causes of action and encumbrances suffered,
        sustained, incurred or required to be paid by Purchaser, net of any resulting
        income tax benefits or insurance proceeds to Purchaser, (A) because of the
        breach of any written representation, warranty, agreement or covenant of
        Seller
        contained in this Agreement or the Seller Documents or (B) in respect of
        any
        liability arising out of any transaction or event relating to the Purchased
        Assets or the operation of the Business occurring prior to or on the Effective
        Date; and (ii) all reasonable costs and expenses (including, without limitation,
        attorneys' fees, interest and penalties) incurred by Purchaser in connection
        with any action, suit, proceeding, demand, assessment or judgment incident
        to
        any of the matters indemnified against in this Section 6.1.

      

      6.2     Indemnification
        of
        Seller. Subject to the limitations set forth in Sections 6.3 and 6.4,
        Purchaser shall indemnify and hold Digby, Shareholder and James F. Digby
        (the
        "Seller Indemnitees") harmless from, against, for and in respect of (i) any
        and
        all damages, losses, settlement payments, obligations, liabilities, claims,
        actions or causes of action and encumbrances suffered, sustained, incurred
        or
        required to be paid by the Seller Indemnitees, net of any resulting income
        tax
        benefits or insurance proceeds received by the Seller Indemnitees, (A) because
        of the breach of any written representation, warranty, agreement or covenant
        of
        Purchaser contained in this Agreement or the Purchaser Documents or (B) in
        respect of any liability arising out of any transaction or event relating
        to the
        Purchased Assets occurring after the Effective Date; and (ii) all reasonable
        costs and expenses (including, without limitation, attorneys' fees, interest
        and
        penalties) incurred by the Seller Indemnitees in connection with any action,
        suit, proceeding, demand, assessment or judgment incident to any of the matters
        indemnified against in this Section 6.2.

      

      6.3     Survival
        of
        Representations, Warranties and Covenants. All representations and
        warranties made by any party to this Agreement or pursuant hereto shall be
        deemed to be material and to have been relied upon by the parties hereto,
        and
        shall survive the execution hereof, notwithstanding any investigation conducted
        at any time with respect to such representations and warranties, for six
        (6)
        months immediately following the Effective Date or until the resolution,
        pursuant to the dispute resolution provisions of Section 8.8, of any dispute
        for
        which written notice of such dispute was received by the Indemnifying Party
        (as
        defined below) prior to the expiration of such 6-month period. Notice of
        any
        claim, whether made under the indemnification provisions hereof or otherwise,
        based on a breach of a representation or agreement must be given prior to
        the
        expiration of such representation or warranty; and any claim not made within
        such period shall be of no force or effect. 

      

      6.4     General
        Rules
        Regarding Indemnification. The obligations and liabilities of each
        indemnifying party hereunder with respect to claims resulting from the assertion
        of liability by the other party shall be subject to the following terms and
        conditions:

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      (a)     
The
        indemnified party shall give
        prompt written notice (which in no event shall exceed 30 days from the date
        on
        which the indemnified party first became aware of such claim or assertion)
        to
        the indemnifying party of any claim which might give rise to a claim by the
        indemnified party against the indemnifying party based on the indemnity
        agreements contained in Sections 6.1 or 6.2 hereof, stating the nature and
        basis
        of said claims and the amounts thereof, to the extent known. The failure
        to
        give, or any delay in giving, a notice of an indemnity claim shall not relieve
        the indemnifying party of its indemnification obligations unless and then
        only
        to the extent: (i) that the failure to give, or delay in giving, such notice
        prevents the indemnifying party from raising a defense to the claim or otherwise
        materially and adversely affects the indemnifying party's ability to defend
        against the claim or (b) the indemnification rights hereunder have lapsed
        because of the survival provisions of Section 6.3.

      

      (b)     
If
        any action, suit or
        proceeding is brought against the indemnified party with respect to which
        the
        indemnifying party may have liability under the indemnity agreements contained
        in Sections 6.1 or 6.2 hereof, the action, suit or proceeding shall, at the
        election of the indemnifying party, be defended (including all proceedings
        on
        appeal or for review which counsel for the indemnified party shall deem
        appropriate) by the indemnifying party. The indemnified party shall have
        the
        right to employ its own counsel in any such case, but the fees and expenses
        of
        such counsel shall be at the indemnified party's own expense unless the
        employment of such counsel and the payment of such fees and expenses both
        shall
        have been specifically authorized in writing by the indemnifying party in
        connection with the defense of such action, suit or proceeding. Notwithstanding
        the foregoing, (A) if there are defenses available to the indemnified party
        which are inconsistent with those available to the indemnifying party to
        such
        extent as to create a conflict of interest between the indemnifying party
        and
        the indemnified party, the indemnified party shall have the right to direct
        the
        defense of such action, suit or proceeding insofar as it relates to such
        inconsistent defenses, and the indemnifying party shall be responsible for
        the
        reasonable fees and expenses of the indemnified party's counsel insofar as
        they
        relate to such inconsistent defenses (but shall not otherwise be obligated
        to
        raise or pursue such inconsistent defenses), and (B) if such action, suit
        or
        proceeding involves or could have an effect on matters beyond the scope of
        the
        indemnity agreements contained in Sections 6.1 and 6.2 hereof, the indemnified
        party shall have the right to direct (at its own expense) the defense of
        such
        action, suit or proceeding insofar as it relates to such other matters (but
        shall not otherwise be obligated to raise or pursue such other matters).
        The
        indemnified party shall be kept fully informed of such action, suit or
        proceeding at all stages thereof whether or not it is represented by separate
        counsel.

      

      (c)     
The
        indemnified party shall make
        available to the indemnifying party and its attorneys and accountants all
        books
        and records of the indemnified party relating to such proceedings or litigation
        and the parties hereto agree to render to each other such assistance as they
        may
        reasonably require of each other in order to ensure the proper and adequate
        defense of any such action, suit or proceeding.

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      (d)     
The
        indemnified party shall not
        make any settlement of any claims without the written consent of the
        indemnifying party. The indemnifying party shall not settle any claims without
        the written consent of the indemnified party if the settlement would impose
        any
        cost or admission of liability upon the indemnified party.

      

      (e)     
An
        indemnified party shall not
        make any claim hereunder unless and until it has incurred claims, liabilities,
        damages and expenses of a cumulative aggregate in an amount (the "Basket
        Amount") equal to $25,000, and shall thereafter be entitled to make a claim
        only
        for amounts in excess of such Basket Amount; provided, however, that this
        provision shall not limit or apply to any claim by Seller under Section 6.2
        (B)
        or to any adjustment of the Purchase Price described in Section 1.3.

      

      (f)     
Except
        for any reduction in the
        Purchase Price for the Post-Closing Credit, the Seller shall not be liable
        hereunder for damages in excess of a cumulative aggregate of $250,000 in
        excess
        of the Basket Amount.

      

      (g)     
In
        no event shall the
        indemnifying party be liable hereunder for consequential, exemplary, punitive
        or
        other speculative damages incurred by the indemnified party as a result of
        an
        indemnified claim, but shall be liable for such damages asserted by any third
        party against the indemnified party, subject to the limitations of this Article
        6.

      

      7.     CONDITIONS
        PRECEDENT TO CLOSING.

      

      7.1     Conditions
        Precedent to Purchaser's Obligations. All obligations of Purchaser under
        this Agreement are, at Purchaser's discretion, subject to the fulfillment
        or
        satisfaction, at the times indicated herein, of each of the following conditions
        precedent:

      

      (a)     
Representations
        and
        Warranties True as of the Closing Date. The representations and warranties
        of Seller contained in this Agreement or in any schedule, certificate or
        document delivered by Seller to Purchaser pursuant to the provisions hereof
        shall be true on the date hereof and shall be true on the Closing Date with
        the
        same effect as though such representations and warranties were made as of
        such
        date.

      

      (b)     
Compliance
        with this
        Agreement. Seller shall have performed and complied with all agreements and
        conditions required by this Agreement to be performed or complied with by
        it
        prior to or at the Closing. 

      

      (c)     
Closing
        Certificate.
        Purchaser shall have received a certificate from Seller dated the Closing
        Date,
        certifying in such detail as Purchaser may reasonably request that the
        conditions specified in Sections 7.1(a) and (b) hereof have been fulfilled
        and
        certifying that Seller has obtained all consents and approvals required with
        respect to the transaction contemplated herein. 

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      (d)     
No
        Threatened or Pending
        Litigation. On the Closing Date, no suit, action or other proceeding, or
        injunction or final judgment relating thereto, shall be threatened or be
        pending
        before any court or governmental or regulatory official, body or authority
        in
        which it is sought to restrain or prohibit or to obtain damages or other
        relief
        in connection with this Agreement or the consummation of the transactions
        contemplated hereby, and Seller shall be aware of no investigation that might
        result in any such suit, action or proceeding shall be pending or
        threatened.

      

      (e)     
Requisite
        Approvals.
        Prior to Closing, Purchaser shall have obtained requisite approvals from
        its
        Board of Directors and any approvals required of its lenders, if
        applicable.

      

      (f)     
Consents,
        Approvals and
        Notices. To the extent required by applicable law:

       

      (i)     
The
        holders of any indebtedness
        of Seller, the lessors or lessees of any real or personal property or assets
        leased by Seller, the parties (other than Purchaser) to any contract, commitment
        or agreement to which Seller is a party or subject, any governmental or
        regulatory official, body or authority or any other person which owns or
        has
        authority to grant any authorization and any governmental, judicial or
        regulatory official, body or authority having jurisdiction over Seller or
        Purchaser to the extent that their consent or approval is required or necessary
        under the pertinent debt, lease, contract, commitment, agreement, other document
        or instrument, authorization or under applicable orders, laws, rules or
        regulations, for the consummation of the transactions contemplated hereby
        in the
        manner herein provided, shall have granted such consent or approval.

      

      (ii)    
Purchaser
        shall have obtained all
        necessary governmental and quasi-governmental permits, licenses, authorizations,
        plates and similar matters to allow it to operate the Business as a common
        carrier in a manner comparable to that of the Seller prior to Closing.

      

      (iii)   
If
        any consent or approval shall not be
        obtained or if any attempted assignment would be ineffective or would impair
        Purchaser's rights under the Purchased Assets in question so that Purchaser
        would not in effect acquire the benefit of all such rights, and Purchaser
        elects
        to close this transaction without such consent, approval or assignment,
        Purchaser shall have the discretion to require that Seller, to the maximum
        extent permitted by law, cooperate with Purchaser and act after the Closing
        as
        Purchaser's agent in order to obtain for it the benefits of such asset. 

      

      (g)     
Customer
        Commitment.
        Purchaser shall have received written consent to the assignment to Purchaser
        of
        various shipper contracts between Seller and its ten (10) largest customers,
        along with the commitment of such customers, satisfactory to Purchaser in
        its
        sole discretion, that no major changes are expected in current business
        volumes.

      

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      (h)     
Material
        Adverse Changes.
        The business, operations, assets, properties or prospects of the Business
        shall
        not have been and shall not be threatened to be materially adversely affected
        in
        any way as a result of any event or occurrence. 

      

      (i)     
Approval
        of Counsel;
        Corporate Matters. All instruments and documents required to carry out this
        Agreement or incidental hereto shall have been approved on the Closing Date
        by
        the General Counsel of Purchaser, in the exercise of its reasonable judgment.
        Seller shall also have delivered to Purchaser such other documents, instruments,
        certifications and further assurances as such counsel may reasonably
        require.

      

      (j)     
Seller's
        Deliveries.
        Seller shall have delivered to the Purchaser at or prior to the Closing the
        following, all of which shall be in a form reasonably satisfactory to the
        Purchaser:

      

      (i)     
Such
        bills of sale, deeds and
        assignments with covenants of warranty, assignments, endorsements and other
        good
        and sufficient instruments and documents of conveyance and transfer, in form
        reasonably satisfactory to Purchaser and its General Counsel, as shall be
        necessary and effective to transfer and assign to, and vest in, Purchaser
        (aa)
        good and valid title in and to the Purchased Assets free and clear of all
        liens
        and encumbrances except as provided herein, and (bb) Seller's rights under
        all
        agreements, warranties, contracts, commitments, leases, plans, quotations,
        proposals, instruments and other documents included in the Purchased Assets.
        

      

      (ii)    
Agreements,
        contracts, commitments,
        leases, plans, bids, quotations, proposals, instruments, computer programs
        and
        software, data bases whether in the form of computer tapes or otherwise,
        related
        object and source codes, manuals and guidebooks, price books and price lists,
        customer and subscriber lists, supplier lists, sales records, files,
        correspondences, legal opinions, rulings issued by governmental entities,
        and
        other documents, books, records, papers, files, office supplies and data
        belonging to Seller which are part of the Purchased Assets; and simultaneously
        with such delivery, all such steps will be taken as may be required to put
        Purchaser in actual possession and operating control of the  Purchased
        Assets. 

      

      (iii)   
Evidence
        satisfactory to Purchaser that,
        as of the Closing Date, all tax liabilities pertaining to the Purchased Assets
        which might otherwise inure to the detriment of Purchaser (including, but
        not
        limited to, federal highway use tax, excise taxes, sales, use and transaction
        privilege taxes, etc.) have been paid through the Closing.

      

      (iv)   
Retention
        of Customers. Seller shall
        continue to operate in the normal course of business and shall continue to
        maintain its equipment and vehicles in a manner consistent with industry
        standards. 

      

      
        
          
          

        

        
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      7.2     Conditions
        Precedent to the Obligations of Seller. All obligations of Seller under this
        Agreement are subject to the fulfillment or satisfaction, prior to or at
        the
        Closing, of each of the following conditions precedent: 

      

      (a)     
Representations
        and
        Warranties True as of the Closing Date. The representations and warranties
        of Purchaser contained in this Agreement or in any schedule, certificate
        or
        document delivered by Purchaser to Seller pursuant to the provisions hereof
        shall be true on the Closing Date with the same effect as though such
        representations and warranties were made as of such date.

      

      (b)     
Compliance
        with this
        Agreement. Purchaser shall have performed and complied with all agreements
        and conditions required by this Agreement to be performed or complied with
        by
        them prior to or at the Closing. 

      

      (c)     
No
        Threatened or Pending
        Litigation. On the Closing Date, no suit, action, or other proceeding, or
        injunction or final judgment relating thereto, shall be threatened or be
        pending
        before any court or governmental or regulatory official, body or authority
        in
        which it is sought to restrain or prohibit or to obtain damages or other
        relief
        in connection with this Agreement or the consummation of the transactions
        contemplated hereby, and no investigation that might result in any such suit,
        action or proceeding shall be pending or threatened.

      

      (d)     
Approval
        of Counsel;
        Corporate Matters. All instruments and documents required to carry out this
        Agreement or incidental hereto shall have been approved on the Closing Date
        by
        counsel for Seller in the exercise of their reasonable judgment. Purchaser
        shall
        also have delivered to Seller such other documents, instruments, certifications
        and further assurances as such counsel for Seller may reasonably require.

      

      8.     POST
        CLOSING
        MATTERS.

      

      8.1     Employee
        Benefits. Purchaser is not assuming any liability under any Benefit Plan
        with respect to any employee, former employee, dependent, beneficiary, or
        independent contractor and regardless of whether such liability is incurred
        prior to or after the Effective Date. All employees of Seller who accept
        employment with Purchaser on or after the Effective Date shall be new employees
        of Purchaser and any prior employment by Seller of such employees shall not
        affect entitlement to, or the amount of, salary or other cash compensation,
        current or deferred, which Purchaser may make available to its employees.

      

      8.2     Employees.
        For
        a period of thirty (30) days immediately following the Effective Date, Seller,
        at no expense to Seller, shall use commercially reasonable efforts to assist
        Purchaser in employing as new employees of Purchaser, the Drivers on the
        Hired
        Driver List and those Non-Drivers that Purchaser desires to hire.

      

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      8.3     Maintenance
        of
        Books and Records. Seller shall retain all material records relating to the
        Purchased Assets and/or the Business (the "Seller Records") until the first
        (1st) anniversary of the Effective Date. After the expiration of
        the
        60-day period covered by the Transition Services Agreement, Seller shall
        continue to provide Purchaser with reasonable access to the Seller Records
        during regular business hours. After expiration of the 60-day period covered
        by
        the Transition Services Agreement, Purchaser shall have the right to make
        copies
        of the Seller Records at Purchaser's sole cost and expense. Without the prior
        written consent of Seller, Purchaser and its officers, directors and
        representatives shall not disclose trade secrets or confidential business
        information of Seller contained in the Seller Records except (i) as such
        disclosure is required by law or (ii) where such information becomes generally
        known or available to the public and/or to Purchaser's competitors through
        sources other than Purchaser, its affiliates or its officers, directors or
        representatives.

      

      8.4     Payments
        Received. Seller and Purchaser each agree that after the Effective Date they
        will hold and will promptly transfer and deliver to the other, from time
        to time
        as and when received by them, any cash, checks with appropriate endorsements
        (using commercially reasonable efforts not to convert such checks into cash),
        or
        other property that they may receive on or after the Effective Date that
        properly belongs to the other party, including without limitation any insurance
        proceeds, and will account to the other for all such receipts.

      

      8.5     Use
        of Name.
        As soon as practicable after the Effective Date, Seller will sign such consents
        and take such other action as Purchaser shall reasonably request in order
        to
        permit Purchaser to use the name "Digby Truck Line" and variants thereof.
        From
        and after the Effective Date, Seller shall discontinue use of the name "Digby
        Truck Line" or any names similar thereto or variants thereof.

      

      8.6     Phase
        I.
        Seller will deliver to Purchaser the most recent Phase I Environmental
        Assessment for Seller's headquarters terminal in La Vergne, Tennessee (near
        Nashville, Tennessee), together with a certificate from Seller that to the
        knowledge of Seller there has been no change in the environmental condition
        of
        the property since the date of the Assessment. 

      

      8.7     Further
        Assurances. From time to time after the Effective Date, Seller shall upon
        reasonable request from Purchaser, execute, acknowledge and deliver to Purchaser
        such other instruments and take such other actions and execute and deliver
        such
        other documents, certifications and further assurances as Purchaser may
        reasonably require to vest more effectively in Purchaser, or to put Purchaser
        more fully in possession of, any of the Purchased Assets. Each of the parties
        hereto shall cooperate with the other and execute and deliver to the other
        parties hereto such other instruments and documents and take such other actions
        as may be reasonably requested from time to time by any other party hereto
        as
        necessary to carry out, evidence and confirm the intended purposes of this
        Agreement.

      

      8.8     Dispute
        Resolution. It is the intention of the parties that in the event any dispute
        arises under this Agreement, the parties shall first meet and confer with
        one
        another to attempt to negotiate a resolution of such dispute without recourse
        to
        arbitration and/or litigation. If, after commercially reasonable efforts
        to
        resolve any dispute arising under this Agreement, the parties are unable
        to
        agree, the dispute shall be submitted to arbitration in accordance with the
        Commercial Arbitration Rules of the American Arbitration Association ("Rules"),
        and further subject to the following: 

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      (a)     
There
        shall be one (1)
        independent arbitrator ("Arbitrator") selected according to the Rules.

      

      (b)     
The
        Arbitrator shall determine
        what discovery shall be permitted, consistent with the goal of limiting the
        cost
        and time which the parties must expend for discovery; provided the arbitrator
        shall permit such discovery as he or she deems necessary to permit an equitable
        resolution of the dispute.

      

      (c)     
The
        determination of the
        Arbitrator shall be binding on the parties hereto, and shall not, absent
        bad
        faith on the part of the Arbitrator, be appealable or otherwise subject to
        challenge.

      

      (d)     
Judgment
        on any award rendered
        by the Arbitrator may be entered in any court having jurisdiction thereof.

      

      (e)     
The
        right to arbitration
        hereunder shall survive any termination of this Agreement.

      

      (f)     
The
        Arbitrator shall select an
        exclusive location for arbitration of any such dispute, controversy, or claim
        and such selection shall be limited to Nashville, TN or Indianapolis, IN.

      

      (g)     
The
        Arbitrator shall be directed
        that any arbitration under this Agreement shall be completed as soon a
        practicable after the filing of notice of a request for such arbitration,
        but in
        any event within ninety (90) days of the request for arbitration. 

      

      (h)     
All
        payments determined by the
        Arbitrator shall be paid in U.S. funds by the responsible party within five
        (5)
        business days following determination thereof. A disputed performance or
        suspended performance pending the resolution of the arbitration shall be
        completed within a reasonable time period following the final decision of
        the
        arbitrator.

      

      (i)     
The
        arbitration proceedings and
        the decision shall not be made public without the joint consent of the parties
        and each party shall maintain the confidentiality of such proceedings and
        decision unless otherwise permitted by the other party.

      

      (j)     
The
        fees and expenses payable to
        the Arbitrator in connection with such determination will be borne 50% by
        Seller
        and 50% by Purchaser.

      

      9.     MISCELLANEOUS.

      

      9.1     Expenses.
        Except as otherwise expressly provided herein, each of the Purchaser and
        Seller
        shall pay its own expenses incurred in connection with this Agreement and
        the
        transactions contemplated hereby. Purchaser shall be responsible for transfer
        taxes, title registration fees and similar charges incurred in connection
        with
        the sale of the Purchased Assets. 

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      9.2     Entire
        Agreement. This Agreement and the exhibits and Schedules hereto contain the
        complete agreement among the parties with respect to the transactions
        contemplated hereby and supersede all prior agreements and understandings,
        oral
        or written, among the parties with respect to such transactions. Section
        and
        other headings are for reference purposes only and shall not affect the
        interpretation or construction of this Agreement. The parties hereto make
        no
        representations or warranties except as expressly set forth in this Agreement
        or
        in any duly executed certificate or schedule delivered pursuant hereto.

      

      9.3     Public
        Announcements. No party to this Agreement shall issue any press release
        relating to, or otherwise publicly disclose the transactions contemplated
        by
        this Agreement without the prior approval of the other party, which approval
        may
        not be unreasonably withheld or delayed. Notwithstanding the foregoing, any
        party may make such disclosure as may be required by law, provided the
        disclosing party provides to the other party reasonable advance written notice
        of such required disclosure describing the substance of the proposed disclosure
        (such as the content of a proposed press release).

      

      9.4     Counterparts.
        This Agreement may be executed in any number of counterparts, each of which
        when
        so executed and delivered shall be deemed an original, and such counterparts
        together shall constitute only one original.

      

      9.5     Notices.
        All
        notices, demands, requests or other communications that may be or are required
        to be given, served or sent by any party to any other party pursuant to this
        Agreement shall be in writing and shall be transmitted by a reputable overnight
        courier service or by hand delivery or facsimile transmission, addressed
        as
        follows:

      

      
        	
                (a) 
                  

              	
                If
                  to Seller:

              	
                Cynthia
                  J. Bedore

                14141
                  Old Hickory Blvd.

                Antioch,
                  TN 37013

                Tel: (615)
                  207-2998

                Fax: (615)
                  ______

              
	 	 	 
	 	
                             
                  w/ a copy to:

              	
                John
                  L. Van Cleave, Esq.

                Watkins
                  & McNeilly, PLLC

                214
                  Second Avenue, North

                Suite
                  300

                Nashville,
                  TN 37201

                Tel: (615)
                  255-2191

                Fax: (615)
                  242-0238

              
	 	 	 
	
                (b) 
                  

              	
                If
                  to Purchaser:

              	
                Paul
                  Will, CFO

                Celadon
                  Trucking Services, Inc.

                One
                  Celadon Drive

                Indianapolis,
                  IN 46235

                Tel:
                   317-972-7000

                Fax:
                   317-890-8099

              

      

      

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      Each
        party may designate by notice in writing a new address to
        which any notice, demand, request or communication may thereafter be so given,
        served, or sent. Each notice, demand, request or communication that is mailed,
        delivered, or transmitted in the manner described above shall be deemed
        sufficiently given, served, sent and received for all purposes at such time
        as
        it is delivered to the addressee (with the return receipt, the delivery receipt,
        fax confirmation sheet or the affidavit of courier or messenger being deemed
        conclusive evidence of such delivery) or at such time as delivery is refused
        by
        the addressee upon presentation.

      

      9.6     Assignment;
        Successors and Assigns. This Agreement may be assigned by either of the
        parties hereto by providing the other party with prior written notice of
        such
        assignment. This Agreement and the rights, interests and obligations hereunder
        shall be binding upon and shall inure to the benefit of the parties hereto
        and
        their respective successors and permitted assigns.

      

      9.7     Governing
        Law. This Agreement is made pursuant to and shall be construed and enforced
        according to the substantive laws of the State of Indiana and without regard
        to
        its laws concerning choice of law. The parties agree that any legal action
        brought by either party hereto in connection with this Agreement shall be
        maintained only in the federal district court or state court sitting in
        Indianapolis, Indiana. and each party hereby irrevocably submits to the sole
        jurisdiction and venue of said courts.

      

      9.8     Waiver
        and Other
        Action. This Agreement may be amended, modified, or supplemented only by a
        written instrument executed by the parties against which enforcement of the
        amendment, modification or supplement is sought.

      

      9.9     Severability.
        If any provision of this Agreement is held to be illegal, invalid, or
        unenforceable, such provision shall be fully severable, and this Agreement
        shall
        be construed and enforced as if such illegal, invalid or unenforceable provision
        were never a part hereof; the remaining provisions hereof shall remain in
        full
        force and effect and shall not be affected by the illegal, invalid or
        unenforceable provision or by its severance; and in lieu of such illegal,
        invalid or unenforceable provision, there shall be added automatically as
        part
        of this Agreement, a provision as similar in its terms to such illegal, invalid
        or unenforceable provision as may be possible and be legal, valid and
        enforceable so as to give effect to the intention of the parties.

      

      9.10     Third-Party
        Beneficiaries. This Agreement and the rights, obligations, duties and
        benefits hereunder are intended for the parties hereto, and no other person
        or
        entity shall have any rights, obligations, duties and benefits pursuant
        hereto.

      

      9.11     Mutual
        Contribution. The parties to this Agreement and their counsel have mutually
        contributed to its drafting. Consequently, no provision of this Agreement
        shall
        be construed against any party on the ground that such party drafted the
        provision or caused it to be drafted or the provision contains a covenant
        of
        such party.

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      9.12     Business
        Days.
        Whenever any obligation hereunder is required to be performed on a day which
        is
        not a "business day," the time required for such performance shall be extended
        to the next succeeding calendar day which is a business day. As used herein,
        the
        term "business day" shall mean any day other than (i) a Saturday, (ii) a
        Sunday
        or (iii) a day on which commercial banks are authorized or required to close
        in
        Nashville, TN or Indianapolis, IN.

      

      

      

      [This
        space intentionally left blank. Signature page
        follows.]

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        the parties hereto have executed this Agreement to be effective as of the
        Effective Date.

      

      
        	 	
                Seller:

              
	 	 
	 	
                Erin
                  Truckways, Ltd. d/b/a Digby Truck Line, Inc.,

                A
                  Delaware corporation

              
	 	 
	 	
                By:

              	
                /s/
                  Cynthia J. Bedore

              
	 	 	 
	 	
                Name:

              	
                Cynthia
                  J. Bedore

              
	 	 	 
	 	
                Title:

              	
                President

              
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	
                Purchaser:

              
	 	 
	 	
                Celadon
                  Trucking Services, Inc.,

                a
                  New Jersey corporation

              
	 	 	 
	 	
                By:

              	
                /s
                  Paul Will

              
	 	 	 
	 	
                Name:

              	
                Paul
                  Will

              
	 	 	 
	 	
                Title:

              	
                Chief
                  Financial Officer

              

      

       

      Back
        to Form 10-Q

      

      
        
          
          

        

        
          23

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