Document:

EX-10.43

	2008 Management Incentive Plan (MIP) Effective January 1, 2008

 

 

	Compensation Philosophy The corporation recognizes that an equitable compensation philosophy helps to attract,
motivate, and retain the most critical resource — employees. Our compensation programs are based
on a commitment to equitable pay for all positions using the factors of market value, internal
comparisons and results achieved. Performance is the most important component in advancement
decisions and is measured by the execution of set goals through accepted behaviors which lead to
the achievement of the corporate Vision. Managers work within set guidelines to determine increases
and incentive awards, carefully considering performance when allocating available funds. The
corporate compensation programs, merit increases and incentive bonuses are determined without
regard to race, color, religion, gender, sexual orientation, national origin, citizenship, age,
disability or status as a disabled veteran, other veteran, recently separated veteran, or
Vietnam-era veteran. Corporate Vision The corporate Vision directs the strategies that are used to
design compensation plans. .. We must earn the right to be an independent bank by increasing
shareholder value . We will achieve this goal by growing profitability and more quickly than our
market competitors .. We will deliver extraordinary value to our clients . We will have a solutions
based sales and sales management process while being committed to internal and external service
excellence .. We will attract, retain and develop the very best people in our markets . We will
hold our people accountable and reward them for both individual and team behaviors and results ..
We will share information and communicate honestly and openly with each other across all areas of
our company . We will be a learning organization with a collaborative, boundaryless environment ..
We will continuously improve our company while operating effectively, cost efficiently and
prudently managing our risks .. We will be the leading bank in the Midwest Incentive Compensation
Committee An incentive compensation design committee — comprised of representatives Executive
Management, HR Corporate Compensation Committee, Human Resources and the Financial Management Group
— developed the incentive plan. They defined component categories, established goals, created
payout formulas and developed reporting and tracking systems. The incentive compensation committee
is accountable for interpretation of the performance plan and resolves any discrepancies or
exceptions.

 

 

	Ethics & Professional Standards Eligibility for payment under this program is conditioned on
demonstrating the highest level of professionalism and ethics, while adhering to the Citizens
Republic Bancorp Code of Conduct and other performance standards. Records It is understood that all
incentives are considered earned income and are subject to all federal, state and local tax laws
and any voluntary payroll deductions such as 401(k) contributions. All appropriate records
necessary for tax purposes will be maintained by the Human Resource Payroll department. Incentives
payable but not received under this program will still be awarded in the event of the death of a
participant. Participants of record with incentive payable but not received, whose beneficiary is
unable to be located within one year of a distribution will forfeit their distribution to the Bank.
General Provisions & Eligibility Requirements Eligible participants include Senior Vice Presidents
and above and certain other officers based upon corporate responsibilities who are not participants
in another established incentive plan with payment amounts determined by performance in relation to
goal. Staff members become eligible to participate in the plan by virtue of promotion or new hire.
        . Awards will be pro-rated based on months served for participants with less than 12 months of
service in a plan year. Some new hire participant awards may be guaranteed based on offer letter.
To be eligible for incentive payment, participants must meet the following requirements: . Be
actively employed at the time of the incentive payment .. A participant who terminates employment
prior to the plan year end is not eligible to receive an award. . Not be on corrective action
(written or termination warning) at the end of the plan year nor at the time of payment .. Results
and payouts will not be prorated . Be performing at a minimum performance level of “Productive” The
discretion of management, CEO and the incentive compensation committee is the final factor in the
determination of eligibility and for final determination of payment award. Special Rules . The Plan
is effective beginning January 1, 2008 and is subject to change at any time prior to the actual
payment, per the Bank’s sole and absolute discretion. . The Plan is not intended to be a contract,
and no participant shall have any contractual right to payment or employment for a particular term
under the Plan. . The Plan will be administered in accordance with Citizens EEO/Affirmative Action
Policy. . The Management Incentive Plan is administered by the Compensation and Human Resources
Committee of the Corporation.

 

 

	.. The Administrator has complete authority to interpret Plan provisions, revise the Plan and
make all of the determinations they deem appropriate for fair administration of the Plan. o The
Administrator reserves the right to terminate this Plan or to revise any aspect of this Plan at any
time, including individual payouts, without prior notification to participants. o Any exceptions to
the Plan must be approved by the Plan Administrator. . While all attempts will be made to follow
the incentive formulas and metrics, subjective adjustments occasionally can and will be made both
upwards and downwards based on management discretion which will require CEO approval. ..
Adjustments will be considered based on value of an individual’s contribution to performance during
the year and not based on comparison to prior year awards, comparison to peer’s incentive levels,
attitude, effort, etc. .. Subjective adjustments will be the exception and not the rule. Management
will however reserve the right to make these subjective adjustments if necessary to be equally fair
to shareholders and plan participants. . The incentive award for the Chairman, President and CEO
will be determined by the Compensation and Human Resources Committee. . A special award fund
(Discretionary) equal to 15% of the aggregate incentive award will be available for individual
awards as determined by the President and CEO. Awards from this fund are made to staff members who
are not participants in the Management Incentive Plan. .. Awards for the Discretionary Fund will be
made only in recognition of exemplary achievements. .. Distribution of all available amounts in
this fund is not mandatory. (see discretionary award guidelines) . This Plan supersedes in their
entirety any previous compensation plan(s), letters, or arrangements with respect to any and all
compensation or incentive pay plans. All other agreements are void and have no further effect. .
This document and is contents are confidential and proprietary to Citizens Bank and shall remain
the property of Citizens Bank. .. Neither this document nor its contents may be discussed,
disclosed, or revealed to anyone outside the Company. The participant is responsible for
maintaining the security of this document. . A participant is responsible for immediately
communicating any incentive underpayments or overpayments to the Human Resources Compensation team.
        .. Failure to communicate any errors on a timely basis may result in corrective action up to and
including termination.

 

 

	Plan Objectives The objectives of the plan are to: . Ensure achievement of strategic goals and
align with the financial goals of the bank: .. Profitable revenue growth, Deposit growth, Efficient
use of capital, NIE management, Credit Quality . Be a “win-win” program for our company,
shareholders and participants. . Strengthen links between pay and performance. . Allow for changes
and/or modifications which support our corporate and line of business strategies. Targeted
Incentive Pool Determination Base Salary x Participation Rate x Service Factor = Targeted Incentive
Pool The participant’s Base Salary at plan year end is used in the calculation. Participation Rates
are determined at start of plan year and approved by the Human Resources Compensation Committee.
Participation Rates are stated as % of base salary and are based on job function and value to the
corporation. The participation rate for individual positions is benchmarked from market data
research provided by various surveys and consultants. The Service Factor is equal to the number of
months the participant is employed with the corporation (or holds an eligible position) during the
plan year divided by 12 and stated as a percentage. Example: 100% is equal to 12 months, 50% is
equal to 6 months. Level Participation Determination

 

 

	Corporate Level Incentive Components The Management Incentive Plan Corporate components consist of
Primary and Secondary Factors: . Primary Factors: Total Revenue, Net Income after Taxes, Total
Deposits, Non Performing Assets, Expense Management. .. All components are independent .. The
results of each Corporate Level component will be placed against the payout tier structure at the
end of the plan year to determine the weighted average payout for Corporate Level performance. (See
payout tier structure at end of document) . Secondary Factors: A Revenue and Net Income Peer
Ranking vs. Peer Group factor may be utilized to determine the FINAL weighted average factor for
the Corporate Component portion of the payout.

 

 

	Line of Business & Individual Level Incentive Goal Setting & Results Each manager is accountable
for establishing goals and providing year end results for their participating staff: . Management
will be provided an automated goal planning and scoring template for each participant. . They will
make the determination, with input from the participant, on the type of goals (quantifiable vs.
qualitative) to be assigned based on the level of participation (line of business results vs.
individual results) of the participant. Each level of participation allows for both goal types. .
Goal setting should provide the measure, the goal/desired outcome and an assigned weighting for
each goal so that the total of all weightings in the assigned participation levels equals 100%. .
At plan year end, managers will be asked to provide results and actual outcomes for all goals, to
score each participant on the core corporate competencies and to provide payout percentages based
on defined payout ranges. Automated goal planning and scoring templates will be provided for each
participant. Quantifiable Goals: . Includes items such as growth, financial measures, service
levels, etc... — Items typically numerical in nature and measurable. . Goals should be set at
levels that are challenging to reach at 100%. . The results for each measurable goal will be placed
against a corporate payout tier structure at the end of the plan year to determine a weighted
average result. Qualitative Goals: . Goals that are not quantifiable, but are measurable on the 1-4
rating scale. . Includes items such as audits, surveys, specific special projects/initiatives,
solutions/strategies, implementations, etc... — Non-numerical. . Goals should be set at levels
that are challenging to reach. . The results for each goal/initiative will be placed against a
corporate payout tier structure on a 1-4 rating scale at the end of the plan year to determine a
weighted average Individual result. Individual Level Performance Modifier: All participants will be
rated on the Core Corporate Competencies to establish a performance multiplier: . Performance for
the full plan year should be considered when rating each participant. . A performance modifier of
0% to 150% will be assigned based on an overall average rating for the participant. . A performance
modifier with results exceeding 100% (average rating of 3.00 or higher) should be reserved for
truly extraordinary performance. See a SAMPLE of the Line of Business & Individual Level Goal
Planning & Scoring Template beginning on page 9.

 

 

	MIP Incentive Calculation (Targeted Incentive Pool x Weighted Avg. Corporate Result) + (Targeted
Incentive Pool x Weighted Avg. Line of Business Result) + (Targeted Incentive Pool x Weighted Avg.
Individual Result) x Performance Factor = Calculated MIP Incentive $        Earned Award Payments All
awards earned under the Management Incentive Plan will be paid as soon as practical following
approvals by the Compensation and Human Resources Committee in February following the plan year
end. Discretionary Award Guidelines . Objectives: To recognize and promote exemplary individual
performance or initiative. . Eligible Participants: All staff members are eligible except staff
members who are in established incentive plans with payment amounts determined by performance in
relation to established goals. . Nomination Process: Managers nominate staff member(s) according to
established guidelines. They must obtain concurrence and approval from their Leadership Team
member. . Monetary Guidelines: Range of $500 to $3000. Larger amounts can be given in exceptional
circumstances. . Guidelines: Discretionary awards can be given in recognition for one or more of
the following performance criteria: Earnings: • Expense reduction • Revenue enhancement Innovation:
· Continuous improvement efforts • Innovative delivery alternatives • Foresight and planning to
prevent crises Achievement: • Unique/specialized skills or knowledge of value to the company, i.e.,
Key Performers • Sustained high performance • Exemplary performance during unusual circumstances or
specific events • Special projects completed in an exceptional manner, with value added •
Extraordinary client service

 

 

	SAMPLE — Line of Business & Individual Level Goal Planning & Scoring Template

 

 

	INDIVIDUAL LEVEL OVERALL

 

 

	1-4 Rating Guideline (Applied separately against each qualitative goal) Both rating
definitions/guidelines and performance must be taken into consideration when assigning a final
rating: Example: . A (4) “Role Model” rating translates to meeting the performance requirement
stated for a (4) AND performing within the guidelines for a (4) rating. (ie. Actively shares best
practices, Helps team exceed goals, etc...). . If both performance AND rating guidelines are not
met, the rating should be lowered until the results meet the required level of standard. Component
Rating — 1 — Needs Improvement Definition: Did not achieve goals set; does not demonstrate
competency expectations at this level. Performance improvement is priority. • Does not meet minimum
stated goal set • Does not learn from repeated mistakes • Requires significant guidance from
supervisor to complete related task or demonstrate competency • Few if any examples in event file
demonstrating the competency • No appropriate strength competency comment • Many examples in event
file of not demonstrating competency • Requires significant guidance from supervisor to demonstrate
competency Component Rating — 2 — Productive Definition: Meets goals set within minimum to
exceeds standard range; a solid performer with some guidance, demonstrates potential to develop
full competency and willingness to become skilled at all elements of performance. • Meets goals
within minimum to exceeds standard • Demonstrates understanding of process • Learns from mistakes •
Requires some guidance from supervisor to complete related tasks • Some examples in event file
demonstrating the competency • Several specific examples of strengths demonstrating competency •
Requires some guidance from supervisor to demonstrate competency • Assists others to achieve
competency when asked Component Rating — 3 — Accomplished Definition: Exceeds goals while
demonstrating strong values and competencies; demonstrates full knowledge of competency and
independently applies it. Expresses positive attitude and demonstrates willingness to expand role.
· Meets goals at or above exceeds standard • Has very few mistakes and demonstrates ability to
learn from those mistakes • Works without assistance to achieve goal

 

 

	· Demonstrates best practice process to achieve goal • Has shared best practices • Many
examples in event file demonstrating the competency • Many specific examples of strengths
demonstrating competency • Seldom requires guidance from supervisor to demonstrate competency •
Regularly shares best practices and assists others within team to achieve this competency Component
Rating — 4 — Role Model Definition: Exceptional performance in every measurable aspect;
innovative, insightful and perceptive. Inspires others through extraordinary attitude and ability
to leverage expert knowledge to others in the team. Sets example that every staff member should
follow. • Always above exceeds standard • Results are consistently among industry best • Normally
mistake free • Actively shares best practices • Helps team exceed goals • Numerous examples in
event file demonstrating the competency • Numerous specific examples of strengths demonstrating
competency • Rarely requires guidance from supervisor to demonstrate competency • Always shares
best practices and assists others within team to achieve this competency • Responsible for team
increasing performance on this competency

 

 

 

	LINE OF BUSINESS LEVEL QUANTIFIABLE GOALS LINE OF BUSINESS INDIVIDUAL LEVEL QUALITATIVE GOALS
INDIVIDUAL LEVEL PERFORMANCE MODIFIEREX-10.1

Exhibit 10.1

 

STOCK PURCHASE AGREEMENT

by and between

Energy West Incorporated

and

Richard M. Osborne, Trustee

Rebecca Howell

Stephen G. Rigo

Marty Whelan

Thomas J. Smith

Dated as of September 12, 2008

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. DEFINITIONS
	 	 	2	 
	 
	 	 	 	 
	1.1. Defined Terms
	 	 	2	 
	1.2. Construction of Certain Terms and Phrases
	 	 	9	 
	 
	 	 	 	 
	2. THE PURCHASE AND SALE OF STOCK
	 	 	10	 
	 
	 	 	 	 
	2.1. Sale and Transfer
	 	 	10	 
	2.2. Payment of the Purchase Price
	 	 	10	 
	 
	 	 	 	 
	3. PRE-CLOSING COVENANTS AND UNDERTAKINGS
	 	 	11	 
	 
	 	 	 	 
	3.1. Satisfaction of Closing Conditions
	 	 	11	 
	3.2. Conduct of the Business of the Companies and Subsidiaries Prior to Closing
	 	 	11	 
	3.3. Consents and Approvals
	 	 	13	 
	3.4. Access, Information and Confidentiality
	 	 	14	 
	3.5. Delivery of Financial Statements and Regulatory Filings
	 	 	15	 
	3.6. Public Announcements
	 	 	16	 
	 
	 	 	 	 
	4. ADDITIONAL AGREEMENTS
	 	 	16	 
	 
	 	 	 	 
	4.1. Tax Matters
	 	 	16	 
	4.2. Employee and Benefit Matters
	 	 	19	 
	4.3. Guaranties or Bonds
	 	 	20	 
	4.4. Agreement Not to Solicit Employees
	 	 	20	 
	4.5. Insurance Claims
	 	 	20	 
	 
	 	 	 	 
	5. REPRESENTATIONS AND WARRANTIES OF RMO REGARDING THE COMPANIES AND SUBSIDIARIES
	 	 	20	 
	 
	 	 	 	 
	5.1. Organization and Good Standing of the Companies and Subsidiaries; Foreign
Qualifications
	 	 	21	 
	5.2. Capitalization of the Companies and Subsidiaries
	 	 	21	 
	5.3. Financial Statements; Undisclosed Liabilities
	 	 	22	 
	5.4. Taxes
	 	 	22	 
	5.5. Tangible Personal Property
	 	 	23	 
	5.6. Agreement Related to Other Instruments; Consents
	 	 	23	 
	5.7. Absence of Changes
	 	 	23	 
	5.8. Material Claims
	 	 	24	 
	5.9. Permits; Compliance With Laws
	 	 	25	 
	5.10. Real Property
	 	 	25	 
	5.11. Intellectual Property; Software
	 	 	26	 
	5.12. Material Contracts
	 	 	27	 
	5.13. Labor Matters
	 	 	28	 
	5.14. ERISA and Related Matters
	 	 	29	 
	5.15. Guaranties or Bonds
	 	 	29	 
	5.16. Employees
	 	 	29	 

i

 

	 	 	 	 	 
	5.17. Environmental Matters
	 	 	30	 
	5.18. Insurance Coverage
	 	 	31	 
	5.19. Governmental Filings: No Violations
	 	 	31	 
	5.20. Accounts Receivable
	 	 	32	 
	5.21. Gratuitous Payments
	 	 	32	 
	5.22. Disclosures
	 	 	33	 
	5.23. Litigation
	 	 	33	 
	5.24. Brokers and Finders
	 	 	33	 
	5.25. Regulatory Proceedings
	 	 	33	 
	 
	 	 	 	 
	6. REPRESENTATIONS AND WARRANTIES OF RMO REGARDING SELLER, THE COMPANIES, AND SUBSIDIARIES AND THE
PURCHASED SHARES
	 	 	34	 
	 
	 	 	 	 
	6.1. Power and Authority; Enforceability
	 	 	34	 
	6.2. No Violation or Conflict by Seller
	 	 	34	 
	6.3. Seller Governmental Approvals
	 	 	34	 
	6.4. Title to the Purchased Shares
	 	 	35	 
	6.5. Litigation Against Seller
	 	 	35	 
	 
	 	 	 	 
	7. REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	35	 
	 
	 	 	 	 
	7.1. Organization and Standing
	 	 	35	 
	7.2. Corporate Power and Authority; Enforceability
	 	 	35	 
	7.3. No Violation or Conflict by Purchaser
	 	 	36	 
	7.4. Purchaser Governmental Approvals
	 	 	36	 
	7.5. Litigation Against Purchaser
	 	 	36	 
	7.6. Purchase for Investment
	 	 	36	 
	7.7. Knowledge of Inaccuracies
	 	 	37	 
	7.8. Investigations
	 	 	37	 
	7.9. “As Is” Sale
	 	 	37	 
	 
	 	 	 	 
	8. CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER
	 	 	38	 
	 
	 	 	 	 
	8.1. Representations True at the Closing
	 	 	38	 
	8.2. Covenants of Seller
	 	 	38	 
	8.3. No Injunction, Etc.
	 	 	38	 
	8.4. Consents, Approvals and Waivers
	 	 	38	 
	8.5. Absence of Material Adverse Effect
	 	 	39	 
	 
	 	 	 	 
	9. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER
	 	 	39	 
	 
	 	 	 	 
	9.1. Representations True at Closing
	 	 	39	 
	9.2. Covenants of Purchaser
	 	 	39	 
	9.3. No Injunction, Etc.
	 	 	39	 
	9.4. Consents, Approvals and Waivers
	 	 	40	 
	 
	 	 	 	 
	10. CLOSING
	 	 	40	 
	 
	 	 	 	 
	10.1. Time and Place of Closing
	 	 	40	 
	10.2. Transactions at Closing
	 	 	40	 

ii

 

	 	 	 	 	 
	11. SURVIVAL OF REPRESENTATION AND WARRANTIES; INDEMNIFICATION
	 	 	42	 
	 
	 	 	 	 
	11.1. Survival of Representations, Warranties and Agreements
	 	 	42	 
	11.2. Agreements to Indemnify Purchaser Indemnitees
	 	 	42	 
	11.3. Agreements to Indemnify the Seller Indemnitees
	 	 	43	 
	11.4. Recoveries
	 	 	43	 
	11.5. Survival
	 	 	43	 
	11.6. Notice and Defense of Actions
	 	 	44	 
	11.7. Exclusive Remedy
	 	 	46	 
	11.8. Treatment
	 	 	46	 
	 
	 	 	 	 
	12. TERMINATION
	 	 	46	 
	 
	 	 	 	 
	12.1. Method of Termination
	 	 	46	 
	12.2. Procedure and Effect of Termination
	 	 	48	 
	 
	 	 	 	 
	13. GENERAL PROVISIONS
	 	 	48	 
	 
	 	 	 	 
	13.1. Notices
	 	 	48	 
	13.2. Brokers
	 	 	50	 
	13.3. Expenses
	 	 	50	 
	13.4. Further Assurances
	 	 	50	 
	13.5. Attribution of Knowledge
	 	 	50	 
	13.6. Waiver
	 	 	51	 
	13.7. Assignment; Binding Effect; No Third-Party Beneficiaries
	 	 	51	 
	13.8. Headings
	 	 	51	 
	13.9. Entire Agreement
	 	 	51	 
	13.10. Modifications
	 	 	51	 
	13.11. Governing Law
	 	 	52	 
	13.12. Severability
	 	 	52	 
	13.13. Counterparts
	 	 	52	 
	13.14. Exhibits and Schedules Incorporated
	 	 	52	 
	13.15. Joint Preparation
	 	 	52	 
	13.16. Performance by Affiliates
	 	 	53	 
	13.17. Consent to Jurisdiction; Waivers of Trial by Jury
	 	 	53	 
	13.18. Shareholder Obligations
	 	 	53	 

iii

 

LIST OF EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Seller’s Closing Certificate
	 
	 	 
	Exhibit B

	 	Form of Purchaser’s Closing Certificate

iv

 

LIST OF SCHEDULES

	 	 	 
	Schedule 1.1

	 	Assumed Debt
	Schedule 3.2(j)

	 	Pre-Closing Employee Payment Issues
	Schedule 3.2(k)

	 	Pre-Closing Company and Non-Company Affiliate Agreements
	Schedule 4.2.1

	 	Each Company’s or Subsidiary’s Employees
	Schedule 4.2.2

	 	NEO and Orwell Vacation and Sick Leave Policy
	Schedule 5.2.1

	 	Seller’s Ownership Allocation of Purchased Shares
	Schedule 5.3.1

	 	Financial Statements
	Schedule 5.3.2

	 	Undisclosed Liabilities
	Schedule 5.4

	 	Taxes
	Schedule 5.5.1

	 	Tangible Personal Property
	Schedule 5.5.2

	 	Companies’ Procedure to Collect Accounts Receivable
	Schedule 5.7

	 	Absence of Changes
	Schedule 5.8

	 	Material Claims
	Schedule 5.9

	 	Permits; Compliance with Laws
	Schedule 5.10.1

	 	Owned Real Property
	Schedule 5.10.2

	 	Leased Real Property
	Schedule 5.10.3

	 	Real Property Matters
	Schedule 5.11.1

	 	Intellectual Property
	Schedule 5.11.2(a)

	 	Each Company’s and Subsidiary’s Software
	Schedule 5.11.2(b)

	 	Non-Company Affiliates’ Software
	Schedule 5.12

	 	Material Contracts
	Schedule 5.13

	 	Labor Matters
	Schedule 5.14

	 	ERISA and Related Matters
	Schedule 5.15

	 	Guaranties or Bonds
	Schedule 5.16

	 	Employees
	Schedule 5.17

	 	Environmental Compliance
	Schedule 5.18

	 	Insurance Coverage
	Schedule 5.19

	 	Government Filings
	Schedule 5.20

	 	Accounts Receivable
	Schedule 6.2

	 	No Violation or Conflict by Seller
	Schedule 6.4

	 	Title to the Purchased Shares
	Schedule 6.5

	 	Litigation Against Seller
	Schedule 7.3

	 	No Violation or Conflict by Purchaser
	Schedule 7.4

	 	Purchaser Governmental Approvals
	Schedule 13.5(a)

	 	Attribution of Knowledge for Seller
	Schedule 13.5(b)

	 	Attribution of Knowledge for Purchaser

v

 

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is entered into as of this
12th day of September, 2008 (the “Effective Date”), by and among RICHARD M. OSBORNE,
TRUSTEE, an Ohio resident (“RMO”), REBECCA HOWELL (“Howell”), STEPHEN G. RIGO
(“Rigo”), MARTY WHELAN (“Whelan”), and THOMAS J. SMITH (“Smith”) (RMO,
Howell, Rigo, Whelan and Smith are hereinafter collectively referred to as “Seller”), and
ENERGY WEST INCORPORATED, a corporation incorporated under the laws of the State of Montana, USA
(“Purchaser”).

W I T N E S S E T H:

     WHEREAS, Seller collectively own one hundred percent (100%) of the outstanding shares of
common stock of Lightning Pipeline Co., Inc., an Ohio corporation (“Lightning”), Great
Plains Natural Gas Company, an Ohio corporation (“Great Plains”), and Brainard Gas Corp.,
an Ohio corporation (“BGC”) and one hundred percent (100%) of the membership interests in
Great Plains Land Development Co., Ltd., an Ohio limited liability company (“GPL” together
with Lightning, Great Plains, and BGC, to collectively be referred to as the “Companies”
and each to be sometimes referred to as a “Company”);

     WHEREAS, Orwell Natural Gas Company, an Ohio corporation (“ONG”) and Northeast Ohio
Natural Gas Corp., an Ohio corporation (“NEO”) are wholly owned subsidiaries of Lightning
and Great Plains, respectively (collectively the “Subsidiaries” and each to sometimes be
referred to as a Subsidiary);

     WHEREAS, Purchaser is a regulated utility company whose service area includes Montana,
Wyoming, Maine, and North Carolina;

     WHEREAS, ONG, NEO, and BGC are regulated utility companies whose service areas include
portions of Ohio and Pennsylvania;

     WHEREAS, Purchaser desires to increase its service area into Ohio and Pennsylvania; and

     WHEREAS, Seller desires to sell to Purchaser and Purchaser desires to purchase, all of the
issued and outstanding capital stock of the Lightning, Great Plains, and BGC, and the all of the
issued and outstanding membership units of GPL, all in accordance with the terms and subject to the
conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises and the mutual promises, representations,
warranties and covenants hereinafter set forth, the parties hereto agree as follows:

 

 

1. DEFINITIONS

          1.1. Defined Terms.

     As used herein, the following terms shall have the following meanings unless the context
otherwise requires:

     “Accounts Receivable” means any and all accounts receivable of the Companies and
Subsidiaries, as the term “accounts receivable” is understood under GAAP.

     “Accrued Tax Liability” means the aggregate amount of Income Tax liabilities
(including deferred Taxes) of the Companies, Subsidiaries, and Affiliates as reflected on the
Closing Date balance sheet.

     “Action” has the meaning set forth in Section 11.6.1.

     “Active Customers” means all customers that receive a gas bill for an active meter
from either NEO, BGC or ONG during the ninety (90) days prior to the Closing Date.

     “Affiliate” means (a) with respect to RMO, the Companies, and each of the
Subsidiaries; and (b) with respect to any other Person, any Person that, directly or indirectly,
through one or more intermediaries, Controls, is Controlled by, or is under common Control with,
such first Person. For purposes of this definition and this Agreement, the Companies and
Subsidiaries shall be deemed to be Affiliates of Seller prior to the Closing and Affiliates of
Purchaser from and after the Closing.

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

     “Assets” means all of the assets, rights, interests, contract rights, accounts,
claims, credits, franchises and properties of the Companies and the Subsidiaries, whether real,
personal, tangible or intangible.

     “Assumed Debt” means all long term debt obligations of the Companies and Subsidiaries
as of the date of Closing, provided, however, that Assumed Debt shall be limited to long term debt
obligations that have been incurred in the Ordinary Course of Business and, further provided that,
Assumed Debt as of August 15, 2008, was approximately $20,867,865.63, as set forth in Schedule
1.1.

     “Average Closing Price” means the average of the closing prices per share of the
common stock of Purchaser as reported on Nasdaq for the twenty (20) consecutive trading days ending
seven (7) calendar days before the Closing Date.

     “Benefit Plan” means: (a) each “employee benefit plan,” as such term is defined in
Section 3(3) of ERISA, (b) each plan that would be an “employee benefit plan”, as such term is
defined in Section 3(3) of ERISA, if it was subject to ERISA, such as foreign plans and plans for
directors, (c) each stock bonus, stock ownership, stock option, stock purchase, stock appreciation
rights, phantom stock, or other stock plan (whether qualified or nonqualified), and (d) each bonus
or incentive compensation plan; provided, however, the term “Benefit Plan” shall
not

2

 

include (i) routine employment policies and procedures or payroll plans developed and applied
in the ordinary course of business and consistent with past practice, including wage, vacation,
holiday, and sick or other leave policies, (ii) workers’ compensation insurance, and (iii)
directors’ and officers’ liability insurance.

     “Business Day” means any day excluding Saturday, Sunday and any day that is a legal
holiday in the State of Ohio.

     “CERCLA” has the meaning given to it in the definition of “Environmental Law.”

     “Closing” means the consummation of the transactions contemplated by Section
10.2.

     “Closing Date” has the meaning set forth in Section 10.1.

     “Companies” has the meaning set forth in the Preamble.

     “Company” has the meaning set forth in the Preamble.

     “Company Insurance Policies” means any

     “Company Plans” means each Benefit Plan (other than the Seller Plans) that is
sponsored or maintained as of the date of this Agreement by any of the Companies, or the
Subsidiaries for the benefit of any of their current or former directors, members (as the case may
be), officers or employees.

     “Confidential Information” means (a) all information concerning a party hereto and/or
its Affiliates furnished to another party hereto or any director, member, officer, employee, agent,
advisor, or other representative (a “Representative”) of such receiving party or any of its
Affiliates in writing, orally or electronically by such disclosing party or any Representative of
such disclosing party or any of its Affiliates in connection with this Agreement or the
transactions contemplated herein, whether before or after the date hereof, including, but not
limited to, any such information (i) concerning the business, financial condition, operations,
products, services, assets, customers, forecasts and/or liabilities of such disclosing party and/or
its Affiliates, (ii) which relates to technologies, intellectual property or capital, models,
concepts, or ideas of such disclosing party and/or its Affiliates, (iii) of third parties that such
disclosing party and/or its Affiliates is required under applicable Law or contracts to keep
confidential, or (iv) that has been clearly identified as confidential; and (b) terms and
conditions of this Agreement and any other agreement entered into pursuant hereto, the fact that
the parties hereto have entered into this Agreement, and that this Agreement exists;
provided, however, the term “Confidential Information” shall not include
information that: (i) is already known or in the possession of such receiving party at the time of
disclosure, as evidenced by such receiving party’s written documentation, unless received or
obtained as confidential information; (ii) becomes subsequently available to such receiving party
on a non-confidential basis from a source not known or reasonably suspected by such receiving party
to be bound by a confidentiality agreement or secrecy obligation owed to such disclosing party;
(iii) is or becomes generally available to the public other than as a result of a breach of
Section 3.4.2 by such receiving party or any Representative of such receiving party or any
of its Affiliates; or (iv) is independently developed by such receiving party without use, directly
or indirectly, of

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Confidential Information of such disclosing party, as evidenced by such receiving party’s
written documentation; provided further, however, if only a portion of the
Confidential Information falls under one of the foregoing exceptions, then only that portion shall
not be deemed Confidential Information.

     “Consolidated” means: (i) with respect to the financial statement(s) of the Companies
and the Subsidiaries, the presentation of the results of operations and the financial position of
the Companies and the Subsidiaries essentially as if the Companies and the Subsidiaries were a
single company with one or more branches or divisions; and (ii) with respect to any financial
item(s) of the Companies and the Subsidiaries, the presentation of such item(s) essentially as if
the Companies and the Subsidiaries were a single company with one or more branches or divisions, in
each case as determined in accordance with GAAP (whether or not the Companies and the Subsidiaries
would in fact be Consolidated under GAAP).

     “Consolidated Income Tax Returns” means any Income Tax Returns filed for any
consolidated, combined or unitary group of corporations under federal, state or local laws, the
common parent of which is Seller.

     “Contract” means any legally binding obligation or agreement (other than a Benefit
Plan) to which the Companies or any of the Subsidiaries is a party, whether or not reduced to
writing, and specifically including but not limited to any note, bond, mortgage, lease of real or
personal property, license agreement, construction contract, subcontract, engineering contract,
guarantee, suretyship agreement, pledge agreement, indemnity, joint venture or partnership
agreement, confidentiality agreement, non-competition agreement, insurance contract, employment
agreement or other contract or agreement.

     “Control” means (a) possession, directly or indirectly, of the power to direct or
cause the direction of management and policies of a Person, whether through the ownership of voting
securities, as a trustee or executor, by contract or credit arrangement or otherwise, or (b) the
ownership of more than fifty percent (50%) of the equity interest in a Person.

     “Deductible” has the meaning set forth in Section 11.5.

     “Default” shall mean (a) a material breach or default, or (b) the occurrence of an
event that with the passage of time or the giving of notice or both would constitute a material
breach or default.

     “DOJ” means the United States Department of Justice.

     “Dollar” or “$” means the lawful currency of the United States.

     “Environmental Law” means any federal, state, provincial or local law, statute,
ordinance, rule, regulation, or order relating to the protection of the environment, including the
Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et seq.)
(“CERCLA”), the Hazardous Material Transportation Act (49 U.S.C. § 1801 et seq.), the
Resource Conservation and Recovery Act (42 U.S.C. § 6901 et seq.), the Federal Water Pollution
Control Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.),

4

 

the Toxic Substances Control Act (15 U.S.C. § 2601 et seq.), and the Safe Drinking Water Act
(42 U.S.C. § 300 et seq.), as amended or supplemented, that is in effect on the Closing Date.

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

     “FERC” means the United States Federal Energy Regulatory Commission.

     “Financial Statements” means the Year-End Financial Statements.

     “FIRPTA Certificate” means a certificate, as described in Treasury Regulation Section
1.1445-2(b)(2), which is signed under penalties of perjury by an authorized representative of
Seller, and which (i) certifies that the Seller is not a “foreign person,” as defined in Treasury
Regulation Section 1.1445-2(b)(2), and (ii) provides Seller’s name, identifying number (as defined
in Section 6109 of the Code), and office address.

     “FTC” means the United States Federal Trade Commission.

     “GAAP” means generally accepted accounting principles as recognized by the American
Institute of Certified Public Accountants, as in effect from time to time.

     “Governmental Authority” means any nation, province, state, county, municipality and
any other political subdivision of any of the foregoing, and any Person exercising executive,
legislative, regulatory or administrative functions of or pertaining to government, including MPSC,
WPSC, PPUC, FERC, FTC, DOJ, PUCO, SEC and IRS.

     “Guaranty or Bond” means any guaranty, letter of credit, surety bond and any other
similar material agreement or arrangement pursuant to which Seller or one or more Non-Company
Affiliates has obligations with respect to any obligations of the Companies or the Subsidiaries,
and any security or collateral furnished in connection with any such guaranty, letter of credit,
surety bond or other similar agreement or arrangement.

     “Hazardous Substance” means and includes each substance designated as a hazardous
waste, hazardous substance, hazardous material, pollutant, contaminant or toxic substance under any
Environmental Law and any petroleum hydrocarbons.

     “Income Tax” means any Taxes imposed on, or measured by, net income.

     “Income Tax Returns” means any Tax Returns relating to Income Taxes.

     “Indemnified Party” means any Person seeking indemnification from another Person
pursuant to Section 11.

     “Indemnifying Party” means any Person against whom a claim for indemnification is
asserted pursuant to Section 11.

     “Index Price” on a given date means the closing value on such date of the American Gas
Stock Index as maintained by the American Gas Association.

5

 

     “Intellectual Property” means the following intellectual property rights, including
both statutory and common law rights, if applicable: (a) copyrights and registrations for
copyrights, (b) trademarks, service marks, trade names, slogans, domain names, logos, symbols, and
trade dress, and registrations and applications for registrations thereof, and (c) trade secrets
and confidential information, including ideas, designs, concepts, compilations of information,
methods, techniques, procedures, processes and other know-how, whether or not patentable.

     “IRS” means the United States Internal Revenue Service.

     “Law” means any law, statute, code, ordinance, regulation, order, reporting or
licensing requirement, or rule, including those promulgated, interpreted or enforced by any
Governmental Authorities.

     “Lien” means any mortgage, pledge, lien, security interest, hypothecation, conditional
sale agreement, restriction, option, defect in title, easement, encumbrance, charge, or other
similar title exception; provided, however, that the term “Lien” shall not include
(a) liens for current Taxes not yet due and payable, including liens for nondelinquent ad valorem
taxes and nondelinquent statutory liens arising other than by reason of any default on the part of
any of the Companies, the Subsidiaries, Seller or any of their Affiliates, (b) liens in favor of
carriers, warehousemen, mechanics, landlords and materialmen imposed by mandatory provisions of Law
and incurred in the Ordinary Course of Business for sums not yet due and payable, and (c) as to any
leased Asset, the rights of the lessor or landlord with respect to such leased Asset.

     “Losses” has the meaning set forth in Section 11.2.1.

     “Major Customer” shall mean any customer of the Companies or any of the Subsidiaries
from which the Companies or the Subsidiaries recognized in accordance with GAAP at least
Twenty-Five Thousand Dollars ($25,000.00) in revenue between January 1, 2008, and June 30, 2008.

     “Material Adverse Effect” means any change (or changes taken together) in, or effect
on, the business, financial condition, prospects, or operations of any of the Companies or
Subsidiaries that is (are) materially adverse to the business, financial condition, prospects, or
operations of the Companies or Subsidiaries, taken as a whole, but excluding any change (or changes
taken together) or effect which is cured (including by the payment of money) before the earlier of
the Closing or the termination of this Agreement under Section 12.1. Without limiting the
foregoing and except for purposes of Sections 5.7(l) and 8.5, any uninsured loss or
damage suffered by the Companies or Subsidiaries individually of Twenty-Five Thousand Dollars
($25,000) (or in the aggregate in excess of One Hundred Thousand Dollars ($100,000.00) shall be
deemed to have a Material Adverse Effect.

     “Material Contracts” has the meaning set forth in Section 5.12.1.

     “Mortgage” means any real estate mortgages which secure land and buildings owned by GPL.

     “MPSC” means the Montana Public Service Commission.

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     “New Guaranty or Bond” has the meaning set forth in Section 4.3.1.

     “Non-Company Affiliate” means any Affiliate controlled by RMO other than the Companies
or the Subsidiaries.

     “Ordinary Course of Business” means, with respect to the Companies and Subsidiaries,
the ordinary course of business which is consistent with past practices of the Companies and the
Subsidiaries.

     “Organizational Documents” means articles of incorporation, articles of organization,
certificate of incorporation, charter, bylaws, code of regulations, certificate of formation,
limited liability company operating agreement, joint venture agreement or partnership agreement, as
applicable.

     “Patent” means (a) any patent granted by the U.S. Patent and Trademark Office or
comparable agency of any other country, as well as any reissued and reexamined patent and
extensions corresponding to such patent, and (b) any patent application filed with the U.S. Patent
and Trademark Office or comparable agency in any other country, as well as any related continuation
or continuation in part, any divisional application and patent issuing therefrom, and any
respective foreign counterpart patent application or foreign patent issuing therefrom.

     “Permits” means all licenses and permits issued by any Governmental Authority.

     “Person” means an individual, partnership, limited partnership, joint venture, limited
liability company or partnership, corporation, bank, trust, company, business entity, governmental
entity or organization, or unincorporated organization.

     “PPUC” means the Pennsylvania Public Utilities Commission.

     “Pre-Closing Income Tax Returns” has the meaning set forth in Section 4.1.1.

     “Property and Casualty Claims” has the meaning set forth in Section 4.5.

     “PUCO” means The Public Utilities Commission of Ohio.

     “Purchase Price” has the meaning set forth in Section 2.2.

     “Purchased Shares” has the meaning set forth in Section 2.1.

     “Purchaser” has the meaning set forth in the Preamble.

     “Purchaser Indemnitees” has the meaning set forth in Section 11.2.1.

     “Purchaser’s Plans” has the meaning set forth in Section 4.2.1 [no def/ref
only].

     “Real Property Leases” has the meaning set forth in Section 5.10.2.

     “Regulatory Approval” means the approval by the MPSC, WPSC, PPUC and PUCO of the
transaction contemplated by this Agreement.

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     “Regulatory Filings” has the meaning set forth in Section 3.3.3(a).

     “Representative” has the meaning given to it in the definition of “Confidential
Information.”

     “Restricted Period” means the period commencing on the Closing Date and expiring on
the second anniversary of the Closing Date.

     “Retained Employee Liabilities” has the meaning set forth in Section 4.2.1.

     “Scheduled Claim” means any of the matters set forth in Schedule 5.7.

     “SEC” means the United States Securities and Exchange Commission.

     “Seller” has the meaning set forth in the Preamble.

     “Seller Indemnitees” has the meaning set forth in Section 11.3.

     “Seller Insurance Policies” means policies of insurance with insurance carriers and
contractual arrangements with insurance adjusters maintained by the Company or Subsidiaries or by
any Non-Company Affiliate that covers the Company or Seller prior to the Closing.

     “Seller Plan” means each Benefit Plan (other than the Company Plans) that is
sponsored, maintained or contributed to as of the Closing Date by the Companies or Subsidiaries or
a Non-Company Affiliate and that covers the current or former directors, officers or employees of
the Companies or Subsidiary.

     “Seller’s Employees” has the meaning set forth in Section 4.2.1.

     “Separate Income Tax Returns” means Income Tax Returns of the Companies, its
Subsidiaries, and any Affiliate, other than Consolidated Income Tax Returns.

     “Share Consideration Value” shall mean a dollar amount equal to the aggregate number
of shares of Purchaser’s common stock being issued to Seller hereunder multiplied by the Average
Closing Price (where such calculation shall be made to the closest whole dollar).

     “Software” means computer software programs including operating systems, application
programs and software tools.

     “Starting Date” shall mean the last full trading day prior to the announcement by
press release of the transaction contemplated by this Agreement or, if such announcement occurs
after the close of trading on any trading day, such trading day.

     “Straddle Returns” has the meaning set forth in Section 4.1.2.

     “Subsidiaries” has the meaning set forth in the Preamble.

     “Tangible Personal Property” means all machines, equipment, tools, computers,
terminals, telephones, telephone systems, furniture, automobiles, fixtures, leasehold

8

 

improvements, parts and other tangible personal property and fixtures owned or leased by the
Companies or the Subsidiaries, including the property listed on Schedule 5.5.1.

     “Tax” or “Taxes” means all United States, federal, state and local, and all
foreign, income, profits, franchise, gross receipts, payroll, transfer, sales, employment, use,
property, excise, value added, ad valorem, estimated, stamp, alternative or ad-on minimum,
recapture, environmental, withholding and any other taxes, charges, duties, impositions or
assessments, together with all penalties and additions imposed on or with respect to such amounts,
or levied, assessed or imposed against the Companies or any of the Subsidiaries, including any
liability for taxes of any predecessor entity.

     “Tax Audit” has the meaning set forth in Section 4.1.7(a).

     “Tax Indemnified Person” has the meaning set forth in Section 4.1.7(a).

     “Tax Indemnifying Person” has the meaning set forth in Section 4.1.7(a)

     “Tax Return” means any return, declaration, report, claim for refund, or information
return or statement filed or required to be filed by the Companies, including any predecessor
entities, with any taxing authority in connection with the determination, assessment, collection or
imposition of any Taxes.

     “Third Party” means any Person other than Seller, Purchaser, any Indemnified Party or
any Affiliate of Seller, Purchaser or any Indemnified Party.

     “Transfer
Tax” has the meaning set forth in Section 4.1.6“Transferred
Employee” has the meaning set forth in Section 4.2.1.

     “Walkaway Determination Date” shall mean the date that is seven (7) calendar days
prior to the Closing Date.

     “WPSC” means the Wyoming Public Service Commission.

     “Year-End Financial Statements” means the unaudited, pro forma consolidated balance
sheet of the Companies dated December 31, 2007.

          1.2. Construction of Certain Terms and Phrases

     Unless the context of this Agreement otherwise requires, (a) words of any gender include the
other gender; (b) words using the singular or plural number also include the plural or singular
number, respectively; (c) the terms “hereof,” “herein,” “hereunder,” “hereby” and derivative or
similar words refer to this entire Agreement; (d) the terms “include,” “includes,” and “including”
shall be deemed to be followed by the words “but not limited to;” (e) the term “Section” refers to
the specified Section of this Agreement; (f) the term “Schedule” or “Exhibit” refers to a Schedule
or Exhibit attached to this Agreement; (g) references to time are to Cleveland, Ohio time; and (h)
the term “material” and derivative or similar words refer to materiality with respect to the
Companies and the Subsidiaries on an aggregate basis. Whenever this Agreement refers to a number
of days, such number shall refer to calendar days unless Business Days are specified.
Except as otherwise stated herein, all accounting terms used herein and not expressly defined
herein shall have the meanings given to them under GAAP.

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2. THE PURCHASE AND SALE OF STOCK

          2.1. Sale and Transfer

     Upon the terms and subject to the conditions hereinafter set forth, Seller shall, at the
Closing, sell, assign, transfer, convey and deliver to Purchaser, and Purchaser shall purchase and
acquire from Seller, all of Seller’s right, title and interest in and to all of the issued and
outstanding shares of common stock of Lightning, Great Plains and BGC, and the issued and
outstanding membership units of GPL (the “Purchased Shares”), in exchange for the Purchase
Price.

          2.2. Payment of the Purchase Price

               2.2.1. Upon the terms and subject to the conditions hereinafter set forth, the aggregate
purchase price to be paid by Purchaser shall be Thirty-Four Million Three Hundred Four Thousand
Dollars ($34,304,000.00) (the “Preliminary Purchase Price”), subject to adjustment up or
down, as the case may be, by the Adjustment Amount. The Preliminary Purchase Price as adjusted by
the Adjustment Amount shall be referred to in the Agreement as the “Purchase Price”.
Purchaser shall pay the Purchase Price at Closing by assuming the Assumed Debt, as reflected on the
respective balance sheets of the Companies for the month preceding the Closing Date, and the
balance of the Purchase Price shall be paid by the issuance of a certain number of validly issued,
fully paid and non-assessable shares of Purchaser’s common stock.

     For purposes of this Agreement, the share price utilized for purposes of the Purchase Price
shall be the greater of (i) the average closing price of Purchaser’s common stock for the ten (10)
trading days prior to the execution of this Agreement or (ii) Ten Dollars ($10.00).

               2.2.2. The parties acknowledge that as of June 12, 2008 the number of aggregate Active
Customers of ONG, BGC, and NEO was 20,900. Within three (3) business days prior to Closing the
parties will determine the actual aggregate Active Customers of ONG, BGC and NEO. At Closing, the
Preliminary Purchase Price shall be increased or decreased, as the case may be, by the difference
between (i) the actual number of aggregate Active Customers as of the Closing Date and (ii) 20,900,
which difference shall then multiplied by $1,598.09, the product of which shall be referred to
herein as the “Adjustment Amount”. For example, if the actual number of Active Customers
at Closing is 21,000, then the Adjustment Amount shall be $159,809
[21,000 - 20,900 = 100 x
$1,598.09]. If on the other hand the number of Active Customers is 20,800, then the Adjustment
Amount shall be ($159,809) [20,800 - 20,900 = (100) x $1,598.09].

               2.2.3. The Purchase Price shall be allocated as follows: Three Million One Hundred Thousand
Dollars ($3,100,000.00) shall be allocated to the purchase of the real property owned by GPL and
the balance shall be allocated to the other Assets of the Companies and Subsidiaries. This
allocation shall be binding on the parties, shall be used for all purposes on

10

 

their respective federal, state and local income tax returns, and shall be supported by them
in any audits or other disputes or litigation involving any such returns.

3. PRE-CLOSING COVENANTS AND UNDERTAKINGS

          3.1. Satisfaction of Closing Conditions

The parties shall use their commercially reasonable efforts to bring about, as soon as
practical after the date hereof, the satisfaction of all the conditions set forth in
Sections 8 and 9.

          3.2. Conduct of the Business of the Companies and Subsidiaries Prior
to Closing

     Except as in the Ordinary Course of Business or with the prior written consent of Purchaser
(which consent shall not be unreasonably withheld, delayed or denied), or as otherwise provided in
Schedule 3.2 or in any other Schedule attached to this Agreement, and except as may be
required to effect the transactions contemplated by this Agreement, or as is otherwise authorized
by this Agreement, RMO covenants that he shall, and shall cause the Companies and Subsidiaries to,
during the period commencing on the date of this Agreement and terminating at the Closing:

                    (a) preserve intact the legal existence of the Companies and Subsidiaries and carry on each
Company’s and each Subsidiary’s business in the Ordinary Course of Business, and use its
commercially reasonable efforts to preserve the goodwill of the Companies and Subsidiaries;

                    (b) maintain the Tangible Personal Property in the Ordinary Course of Business;

                    (c) keep in force at no less than their present limits all existing surety bonds and policies
of insurance insuring the Assets and each Company’s and Subsidiary’s business, except to the extent
that any such surety bond or insurance policy is no longer applicable or otherwise required
pursuant to the business of the Companies and Subsidiaries;

                    (d) use commercially reasonable efforts to maintain in full force and effect all Permits held
by the Companies or Subsidiaries, except those Permits the failure of which to hold, individually
or in the aggregate, could not reasonably be expected to have a Material Adverse Effect;

                    (e) neither enter into, modify, amend or terminate any Material Contract or Real Property
Lease, nor waive, release, compromise or assign any material rights or claims thereunder, nor
suffer, permit or incur any of the transactions or events described in Section 5.7 to the
extent such events or transactions are within the reasonable control of Seller, the Companies, or
the Subsidiaries;

                    (f) not make any distributions of the Assets to Seller in the form of return of capital or
dividends, except for the transactions contemplated in Section 4.1;

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                    (g) not make or permit any change in each Company’s or Subsidiary’s Organizational Documents,
or in any Company’s or Subsidiary’s authorized, issued or outstanding securities, except that Great
Plains may increase the number of its outstanding shares to two million (2,000,000) and Lightning
may increase the number of its outstanding shares to one million (1,000,000) shares;

                    (h) not issue any additional shares of capital stock, membership interests or other securities
or ownership interests of any Company or Subsidiary, grant any stock option or right to purchase
any security or ownership interest of any Company or Subsidiary, issue any security or ownership
interest convertible into such securities or ownership interests, purchase, redeem, retire or
otherwise acquire any of such securities or ownership interests, or declare, set aside or pay any
dividend or cash distribution in respect of the securities or ownership interests of any Company or
Subsidiary, except for the transfer of shares prior to Closing to Howell, Rigo, Whelan, and Smith
in accordance with the ownership allocation set forth in Schedule 5.2.1;

                    (i) not make any changes in the accounting methods or practices of the Companies or
Subsidiaries;

                    (j) not (i) pay, or incur any obligation for any payment of, any contribution or other amount
to, or with respect to, any Company Plan, (ii) pay any bonus to, make any loan, pay or transfer any
Assets to, or grant any increase in the compensation of, any Company or Subsidiary director,
officer, or employee, (iii) make any increase in the pension, retirement or other benefits of the
directors, officers, or employees, except as set forth in Schedule 3.2(j), or (iv) hire
any additional employees without the prior written consent of the Purchaser, which consent shall
not be unreasonable withheld;

                    (k) not have the Companies or Subsidiaries pay, lend or advance any amount to or in respect
of, or sell, transfer or lease any Assets to, or enter into any agreement, arrangement or
transaction with, Seller or any Non-Company Affiliate, except for the payments, agreements,
arrangements, leases, transactions and arrangements set forth in Schedule 3.2(k);

                    (l) not permit the Companies or Subsidiaries to (i) incur or assume any indebtedness for
borrowed money or issue any debt securities, or (ii) assume, guarantee, endorse or otherwise become
liable or responsible (whether directly, contingently or otherwise) for the obligations of any
Person;

                    (m) not permit the Companies or Subsidiaries to (i) make any loans, advances or capital
contributions to, or investments in, any Person, (ii) pledge or otherwise encumber shares of any
Company or Subsidiary capital stock, or (iii) mortgage or pledge any of the Assets, or create or
suffer to exist any Lien thereupon;

                    (n) not permit the Companies or Subsidiaries to acquire, sell, lease or dispose of any
Assets;

                    (o) not permit the Companies or Subsidiaries to (i) acquire any Person (or division thereof),
any equity interest therein or all or substantially all of the assets thereof
whether through a merger, consolidation or purchase, or (ii) enter into a joint venture,
partnership or any other equity alliance with any Person;

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                    (p) not permit RMO or any Non-Company Affiliate to hire away any essential employee of the
Companies or Subsidiaries without Purchaser’s prior written consent; and

                    (q) not agree to do anything, or agree to permit the Companies or Subsidiaries to do anything,
that would violate any of the foregoing affirmative and negative covenants of this Section
3.2.

          3.3. Consents and Approvals

               3.3.1. Subject to the allocation of responsibility set forth in Section 3.3.2, RMO
agrees to, and agrees to cause the Companies or Subsidiaries, as the case may be, to apply for and
use commercially reasonable efforts to obtain no later than at the Closing (a) the Regulatory
Approval, (b) the waiver, consent and approval of all Persons whose waiver, consent or approval is
required by Law for Seller’s execution and delivery of this Agreement and Seller’s and each
Company’s or Subsidiary’s consummation of the transactions contemplated herein, and (c) the waiver,
consent and approval of all Persons whose waiver, consent or approval is required by any Material
Contract, Real Property Lease, consent, judgment, decree, order or Permit to which Seller, the
Companies, or Subsidiaries is a party or subject immediately prior to the Closing, and which would
prohibit or require the waiver, consent or approval of any Person to, such transactions or under
which, without such waiver, consent or approval, such transactions would constitute an occurrence
of Default under the provisions thereof, provided, however, that neither RMO nor
the Companies or Subsidiaries shall make any agreements or understandings adversely affecting the
Assets or the Companies or Subsidiaries, or their business, as a condition to obtaining any
waivers, consents or approvals required by this Section 3.3.1, except as otherwise provided
herein or with the prior written consent of Purchaser, and further provided that if RMO fails to
obtain any consents that are required under this Section 3.3 prior to Closing (except any
required governmental consents, consents of lenders or consents relating to any of the pipelines),
such failure shall not be deemed a Default under this Agreement and/or cause this Agreement not to
be consummated so long as the failure to obtain the consent does not have a Material Adverse Effect
on the consummation of this Agreement, the Company, the Subsidiaries, or the Assets.

               3.3.2. Each of the parties hereto (a) will take all commercially reasonable actions necessary
to comply promptly with all Laws that may be imposed on such party with respect to the transactions
contemplated herein (including requesting all necessary approvals for and executing all necessary
agreements for the novation of any Material Contracts with any Governmental Authority, requesting
all necessary material approvals of subcontractors to such contracts, providing notices and
disclosures as required for foreign Persons, and furnishing all information required under any Law
in connection with approvals of or filings with any Governmental Authority (including without
limitation MPSC, PUCO, WPSC, FTC, DOJ, SEC, PPUC or IRS)); provided, however, the
foregoing shall not require any of the parties hereto or any of their Affiliates to sell or
otherwise divest of a material portion of their respective assets or properties or discontinue any
of their respective significant operations; and (b) will promptly cooperate with and furnish
information to each other in connection with any such legal

13

 

requirements imposed upon any of them in connection with the transactions contemplated herein.
Any filings or approvals required to be accomplished by Seller, the Companies, Subsidiaries or any
Non-Company Affiliate in accordance with this Section 3.3.1 shall be at Seller’s or such
Non-Company Affiliate’s expense.

               3.3.3. MPSC, WPSC, PPUC and PUCO Regulatory Filings.

                    (a) Purchaser and Seller shall have joint responsibility for the preparation and filing of
the regulatory filings to be made to the MPSC, WPSC, PPUC and PUCO requesting Regulatory
Approval ( “Regulatory Filings”). Upon the request of the other party, RMO and
Purchaser shall use commercially reasonable efforts to cooperate with such other party to
prepare and file such Regulatory Filings [if necessary].

                    (b) Purchaser and RMO shall use commercially reasonable efforts to file as soon as
practicable after the date hereof the Regulatory Filings, and execute all agreements and
documents, in each case, to obtain as promptly as practicable the Regulatory Approvals.
Purchaser and RMO shall act diligently, and shall coordinate in completing and submitting the
Regulatory Filings. Purchaser and RMO shall each have the right to review and approve (which
such approval shall not be unreasonably withheld, delayed or conditioned) in advance all of the
information relating to the transactions contemplated by this Agreement which appears in the
Regulatory Filings. Purchaser and RMO agree that all telephonic calls and meetings with the
MPSC, WPSC, PPUC or PUCO relating to the transactions contemplated by this Agreement shall be
conducted by Purchaser and RMO jointly. Each party will bear its own legal costs incurred in
connection with the preparation and filing of the Regulatory Filings.

               3.3.4. Nothing in this Agreement will require Purchaser, Seller, Company or Subsidiaries to
accept any condition to, limitation on or other term concerning the grant of Regulatory Approval if
such condition, limitation or other term, alone or in the aggregate with such other conditions,
limitation or other terms would (i) require the disposition by Purchaser, Seller, Company or
Subsidiaries of any material asset(s); (ii) have a Material Adverse Effect on Purchaser, Seller,
Company or Subsidiaries in its acquisition, ownership, use, operation or disposition of any
property other than the Assets; or (iii) materially change or impair the commercial expectation of
the Purchaser. Seller, Company or Subsidiaries with respect to the sale or distribution of gas by
the Companies or the Subsidiaries.

          3.4. Access, Information and Confidentiality

               3.4.1. Prior to the Closing, Seller shall cause the Companies or Subsidiaries to (a) give
Purchaser and its authorized Representatives reasonable access, during normal business hours and
upon reasonable notice, to the books, records, files, documents and contracts of the Companies and
Subsidiaries, and (b) allow Purchaser (together with its authorized Representatives) to make a
reasonable number of visits to each office, facility and other property owned or leased by the
Companies or Subsidiaries.

               3.4.2. (a) Subject to the first sentence of subsection (b) of this Section 3.4.2, a
party hereto receiving Confidential Information from another party hereto shall not disclose

14

 

and shall keep strictly confidential all such Confidential Information of such disclosing
party; provided, however, that such receiving party may disclose Confidential Information of such
disclosing party (i) to any Representative of such receiving party or any of its Affiliates who
needs to know such information for purposes of consummating the transactions contemplated herein;
(ii) to any partner, Affiliate, lender or investor of such receiving party or any of its
Affiliates, or any Representative of such partner, Affiliate, lender or investor who needs to know
such information for purposes of consummating the transactions contemplated herein; and (iii) to
the extent that such receiving party or Representative is required to disclose such information in
order to avoid committing a violation of any applicable law, rule or regulation, including any
rules or regulations of any securities association, stock exchange or national securities quotation
system.

                    (b) In the event that a receiving party or any Representative of such receiving party or any
of its Affiliates is requested or required, pursuant to any applicable court order, administrative
order, statute, regulation or other official order by any Governmental Authority, to disclose any
Confidential Information of a disclosing party, such receiving party shall (i) provide such
disclosing party with prompt written notice of any such request or requirement so that such
disclosing party may seek a protective order or other appropriate remedy and/or waive compliance
with the provisions of this Section 3.4.2, and (ii) reasonably cooperate with such
disclosing party to obtain such protective order or other remedy. In the event such protective
order or other remedy is not obtained and a disclosing party fails to waive compliance with the
relevant provisions of this Section 3.4.2, such receiving party agrees to (A) furnish only
that portion of the Confidential Information for which such receiving party is advised by written
opinion of its legal counsel obtained at the disclosing party’s expense, is legally required to be
disclosed, (B) upon such disclosing party’s request and expense, use its commercially reasonable
efforts to obtain assurances that confidential treatment will be accorded to such information, and
(C) give such disclosing party prior written notice of the Confidential Information to be
disclosed.

                    (c) If this Agreement is terminated prior to the Closing or at any other time for any reason,
upon the written request of a disclosing party, each receiving party will, and will cause all
Representatives of such receiving party or any of its Affiliates to promptly, (i) deliver to such
disclosing party all original Confidential Information (whether written or electronic) furnished to
such receiving party or any Representative of such receiving party or any of its Affiliates by or
on behalf of such disclosing party, and (ii) if specifically requested by such disclosing party,
destroy (A) any copies of such Confidential Information (including any extracts therefrom), and (B)
any portion of such Confidential Information that may be found in reports, analyses, notes,
compilations, studies and other documents prepared by or for such receiving party. From and after
the Closing, Purchaser shall be released from all obligations owed by it to Seller under this
Section 3.4.2 with respect to the Confidential Information owned by the Companies or
Subsidiaries. This Section 3.4.2 shall survive any termination of this Agreement

          3.5. Delivery of Financial Statements and Regulatory Filings

     During the period commencing on the date of this Agreement and terminating at the Closing, RMO
shall deliver to Purchaser, within thirty (30) days of being available or filed,

15

 

copies of (a) all regularly prepared unaudited monthly, quarterly and annual consolidated
financial statements of the Companies and Subsidiaries prepared after the date of this Agreement,
and (b) all material filings or submissions by the Companies or Subsidiaries with any Governmental
Authority made after the date of this Agreement.

          3.6. Public Announcements

     No party hereto or any of its Affiliates shall make any public announcement of the execution
and delivery of this Agreement or the transactions contemplated by this Agreement without first
obtaining the prior written consent of the other party hereto, such consent not to be unreasonably
withheld, delayed or conditioned; provided, however, that nothing contained in this
Section 3.6 shall prohibit any party hereto or any of its Affiliates from (a) making any
disclosures or having any discussions with the MPSC, WPSC, PPUC or PUCO regarding this Agreement or
the transaction contemplated by this Agreement in accordance with Section 3.3.2, or (b)
making any public announcement in accordance with any required SEC filing, or (c) having
discussions with its lenders, or (d) making any public announcement if such party or its Affiliate
determines in good faith, on the advice of legal counsel, that such public disclosure is required
by applicable Law or any listing agreement with a national securities exchange or trading market;
provided further, that in such event, such party or its Affiliate shall consult
with the other party hereto prior to making such disclosure to the extent reasonably practicable.

4. ADDITIONAL AGREEMENTS

          4.1. Tax Matters 

               4.1.1. RMO shall (i) cause each Company and Subsidiary to prepare and file on a timely basis
all Tax Returns of the Companies and Subsidiaries for all Tax periods which end on or prior to the
Closing Date, which are filed before or after the Closing Date; and (ii) pay all Taxes of the
Companies and Subsidiaries with respect to such Tax periods, or, at Purchaser’s option, shall
reimburse Purchaser within fifteen (15) days after payment by Purchaser of such Taxes. RMO shall
cause to be prepared all Income Tax Returns of the Companies and Subsidiaries due after the Closing
Date that relate solely to periods ending on or before the Closing Date (such Separate Income Tax
Returns being referred to as “Pre-Closing Income Tax Returns”). RMO shall submit to
Purchaser any Pre-Closing Income Tax Returns at least thirty (30) days prior to the due date of
such Tax Return for Purchaser’s review. Purchaser and Seller shall collectively cause the
Companies and Subsidiaries to timely and appropriately file all Pre-Closing Income Tax Returns
submitted by the Seller in accordance with this Section 4.1.1.

               4.1.2. Purchaser shall cause the Companies and Subsidiaries to prepare and file on a timely
basis all Tax Returns of the Companies and Subsidiaries (other than Pre-Closing Income Tax Returns)
due after the Closing Date, including all Tax Returns that relate to periods beginning before and
ending after the Closing Date (“Straddle Returns”). All Straddle Returns shall be prepared
on a basis consistent with procedures and practices of the Companies and Subsidiaries in effect as
of the date hereof for filing such Tax Returns. Purchaser shall submit all Straddle Returns
related to Income Taxes to Seller at least thirty (30) days prior to the due date of such Straddle
Return for Seller’s review and approval (which will not be unreasonably withheld, delayed or
conditioned).

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               4.1.3. Purchaser and RMO shall to the extent permitted under applicable law (i) elect to have
the tax year of the Companies and Subsidiaries that end on the Closing Date to end on (and include)
the Closing Date and (ii) treat all transactions occurring on the Closing Date but after the
Closing as occurring on the day after the Closing Date. To the extent that the tax year of the
Companies and Subsidiaries does not end on the Closing Date such that the Tax Return is a Straddle
Return, the Income Taxes payable on the Straddle Return shall be allocated between the portion of
the period ending on the Closing Date and the portion of the period beginning after the Closing
Date assuming that the taxable period for the Straddle Return actually included two separate
periods, one ending on the Closing Date and one beginning on the date after the Closing Date,
provided that all exemptions, allowances, or deductions for the entire taxable for the Straddle
Return which are calculated on an annual basis (including, but not limited to, depreciation and
amortization deductions) shall be allocated between the two short periods in proportion to the
number of days in each period.

               4.1.4. Access to Information

                    (a) From and after the Effective Date, RMO shall grant to Purchaser (or its designees) access
to the information, books and records relating to the Companies and Subsidiaries (including without
limitation work papers and correspondence with taxing authorities, and shall afford Purchaser (or
its designees) the right to take extracts therefrom and to make copies thereof for purposes of
preparing Tax Returns, to conduct negotiations with taxing authorities, and to implement the
provisions of, or to investigate or defend any claims between the parties arising under, this
Section 4.1.

                    (b) From and after the Effective Date, Purchaser shall grant to RMO (or its designees) access
to all of the information, books and records relating to the Companies and Subsidiaries within the
possession of Purchaser or the Companies and Subsidiaries (including without limitation work papers
and correspondence with taxing authorities), and shall afford RMO (or his designees) the right (at
RMO’s expense) to take extracts therefrom and to make copies thereof, to the extent reasonably
necessary to permit RMO (or his designees) to prepare Tax Returns, to conduct negotiations with
taxing authorities, and to implement the provisions of, or to investigate or defend any claims
between the parties arising under, this Agreement.

                    (c) Each of the parties hereto will preserve and retain all schedules, work papers and other
documents relating to any Tax Returns of or with respect to the Companies or Subsidiaries or to any
claims, audits or other proceedings affecting the Companies or Subsidiaries until the expiration of
the statute of limitations (including extensions) applicable to the taxable period to which such
documents relate or until the final determination of any controversy with respect to such taxable
period, and until the final determination of any payments that may be required with respect to such
taxable period under this Agreement.

               4.1.5. Purchaser and RMO shall provide (and cause the Companies and Subsidiaries to provide)
each other with such assistance as may reasonably be requested by the other in connection with the
preparation of any Tax Return, any audit or other examination by any taxing authority, or any
judicial or administrative proceedings relating to liabilities for Taxes. 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

17

 

providing copies of relevant tax returns and supporting material. Purchaser and RMO will
retain (and shall cause the Companies and Subsidiaries to retain) for the full period of any
statute of limitations any documents which may be relevant to such preparation, audit, examination,
proceeding or determination.

               4.1.6. Purchaser shall pay all federal, state, local, foreign and other transfers, sales, use
or similar Tax (a “Transfer Tax”) applicable to, imposed upon or arising out of the
transfer of the Purchased Shares or any other transaction contemplated by this Agreement.

               4.1.7. Contest Provisions.

                    (a) Each of Purchaser, on the one hand, and Seller, on the other hand (the “Tax
Indemnified Person”), shall promptly notify the chief tax officer (or other appropriate person)
of Seller or Purchaser, as the case may be (the “Tax Indemnifying Person”), in writing upon
receipt by the Tax Indemnified Person of written notice of any pending or threatened audits,
adjustments, claims, examinations, assessments or other proceedings (a “Tax Audit”) which
are likely to affect the liability for Taxes of such other party, provided, however, that failure
to file timely written notice to the other party shall not affect the other party’s indemnification
obligations hereunder unless such failure materially adversely affects the other party’s rights to
participate in the Tax Audit.

                    (b) If such Tax Audit relates to any taxable period, or portion thereof, ending on or before
the Closing Date or for any Taxes for which RMO is liable in full under this Agreement, RMO shall,
at his expense, control the defense and settlement of such Tax Audit. If such Tax Audit relates to
any taxable period, or portion thereof, beginning on or after the Closing Date or for any
Taxes for which Purchaser is liable in full under this Agreement, Purchaser shall, at its expense,
control the defense and settlement of such Tax Audit.

                    (c) If such Tax Audit relates to Taxes for which both RMO and Purchaser are liable under this
Agreement, to the extent practicable, such Tax items will be distinguished and each party will
control the defense and settlement of Taxes for which it is so liable. If such Tax Audit relates
to a taxable period, or portion thereof, beginning before and ending after the Closing Date and any
Tax item cannot be identified as being a liability of only one party or cannot be separated from a
Tax item for which the other party is liable, Purchaser may either elect, at its expense, to
control the defense and settlement of the Tax Audit or require RMO, at his expense, to control the
defense and settlement of the Tax Audit, provided that such party defends the items as reported on
the relevant Tax Return and provided further that no such matter shall be settled without the
written consent of both parties, not to be unreasonably withheld.

                    (d) Any party whose liability for Taxes may be affected by a Tax Audit shall be entitled to
participate at its expense in such defense and to employ counsel of its choice at its expense and
shall have the right to consent to any settlement of such Tax Audit (not to be unreasonably
withheld) to the extent such settlement would have an adverse effect for a period for which that
party is not liable for Taxes, under this Agreement or otherwise.

18

 

               4.1.8. All Tax sharing or similar agreements that include RMO and the Companies or
Subsidiaries shall be cancelled prior to the Closing Date such that the Companies or Subsidiaries,
as the case may be, shall have no further rights or obligations under such agreements.

               4.1.9. FIRPTA Certificate. Prior to Closing, Seller shall deliver a FIRPTA
Certificate to Purchaser.

          4.2. Employee and Benefit Matters

               4.2.1. Schedule 4.2.1 contains a list of employees who are actively employed by the
Companies or Subsidiaries (including individuals on vacation, short-term disability or similar
leave but excluding those persons on long-term disability leave) on the date hereof who the
parties agree and acknowledge will be treated as employees of the Companies and Subsidiaries for
purposes of this Agreement, which such Schedule 4.2.1 shall be amended as of the Closing
Date to include such employees employed in positions at the Companies and Subsidiaries as of the
Closing Date (“Seller’s Employees”). Section 4.2.1 shall also include the amount
of accrued sick leave, flex time and vacation time for each of Seller’s Employees. From and after
the Closing Date, Purchaser shall have the right to terminate any or all of Seller’s Employees at
will or to continue the employment of any or all of Seller’s Employees with the Companies and
Subsidiaries upon terms and conditions acceptable to Purchaser in Purchaser’s sole and absolute
discretion. Purchaser shall provide Seller with written notification at least three (3) days
prior to the Closing Date of any employee who will be terminated as of the Closing Date. Each of
Seller’s Employees who continues employment with the Companies or Subsidiaries as of the Closing
Date shall hereinafter be referred to as a “Transferred Employee.” Seller shall retain
and satisfy any and all responsibility, and Purchaser shall have no liability or responsibility
whatsoever, for any and all claims, liabilities and obligations, whether contingent or otherwise,
relating to (i) any current, former or retired employee of the Companies or Subsidiaries who is
not a Transferred Employee, including, without limitation, any unpaid salary, wages, bonuses or
other compensation or severance pay or benefits, (ii) any Transferred Employee arising out of or
relating to any period, or otherwise incurred, prior to the Closing Date, including, without
limitation, any unpaid salary, wages, bonuses or other compensation or severance pay, benefits or
group health care coverage required by Section 4980B of the Code or Section 601 of ERISA, and
(iii) the Seller’s Benefit Plans (such claims, liabilities and obligations, collectively the
“Retained Employee Liabilities”). Purchaser shall have no obligation to continue the
employment of any Transferred Employee for any period following the Closing Date, and may
terminate the employment of any Transferred Employee at will. Purchaser shall not receive assets
from, nor be required to assume any of the liabilities of, the Seller Plans.

               4.2.2. On the Closing Date, Purchaser shall assume all liabilities relating to each
Transferred Employee’s unused flexible holiday, vacation and sick time, if any. Schedule
4.2.2 provides the vacation and sick leave policies of NEO and Orwell together with accrued
vacation and sick leave as of the date hereof, and Schedule 4.2.2 shall be updated within
three (3) business days of Closing.

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          4.3. Guaranties or Bonds

               4.3.1. After the date hereof and prior to the Closing, RMO shall not, and shall cause the
Company or Subsidiaries not to, without the prior written consent of Purchaser, (a) enter into,
issue or obtain any Guaranty or Bond (each individually, a “New Guaranty or Bond”), or (b)
amend or otherwise modify any Guaranty or Bond; provided, however, that Purchaser
shall not unreasonably withhold, delay or condition its consent to any New Guaranty or Bond which
is entered into in the Ordinary Course of Business, and Purchaser shall not unreasonably withhold,
delay or condition its consent to any amendment or other modification of any Guaranty or Bond in
the Ordinary Course of Business if such amendment or other modification would not result in a
breach of any provision of this Agreement; and

               4.3.2. RMO shall promptly provide Purchaser with a true and correct copy of any New Guaranty
or Bond or amendment or other modification to a Guaranty or Bond.

          4.4. Agreement Not to Solicit Employees

     Unless otherwise consented to in writing by Purchaser, Seller agrees that during the
Restricted Period, neither RMO nor any Non-Company Affiliate will solicit or hire away any
Transferred Employee.

          4.5. Insurance Claims

     RMO shall be solely responsible for the administration and, to the extent applicable, payment
of any Property and Casualty Claims with a date of occurrence prior to the Closing, and hereby
releases Purchaser, the Companies, Subsidiaries, and their Affiliates of any responsibility or
liability therefor. Purchaser shall be solely responsible for the administration and, to the
extent applicable, payment of any Property and Casualty Claims with a date of occurrence on or
after the Closing, and hereby releases Seller of any responsibility or liabilities therefor. For
purposes hereof, “Property and Casualty Claims” shall mean workers’ compensation, auto liability,
general liability, products liability, professional liability, fiduciary liability, pollution
liability and director and officer liability claims relating to the business of the Companies and
Subsidiaries and claims for damages caused to facilities of the Companies or Subsidiaries generally
insured under causes-of-loss — special form property and boiler and machinery insurance coverage,
in each case including reported claims and incurred but not reported claims. RMO shall be solely
responsible for the administration and payment of all costs associated with claims for workers’
compensation and other occupational health or injury claims of employees the Companies and
Subsidiaries prior to the Closing Date and for any claim filed subsequent to the Closing Date made
in connection with any injury, event or occurrence taking place prior to the Closing Date.

5. REPRESENTATIONS AND WARRANTIES OF RMO REGARDING THE COMPANIES AND SUBSIDIARIES

     RMO represents and warrants to Purchaser that:

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     5.1. Organization and Good Standing of the Companies and Subsidiaries; Foreign Qualifications

               5.1.1. Lightning, Great Plains, BGC and the Subsidiaries are corporations duly incorporated,
validly existing and in good standing under the laws of the State of Ohio, USA, and each has all
requisite corporate power and authority to carry on its business as such business is currently
conducted.

               5.1.2. GPL is a limited liability company duly organized, validly existing and in good
standing under the laws of the State of Ohio, USA, and has all requisite limited liability company
power and authority to carry on its business as such business is currently conducted.

               5.1.3. The Companies and Subsidiaries are duly licensed, registered and qualified to do
business as a foreign corporation or limited liability company, as the case may be, and are in good
standing in all jurisdictions in which the ownership, leasing or operation of their assets or the
conduct of their business as currently conducted requires such qualification under applicable Law.

               5.1.4. Seller has heretofore made available to Purchaser true, correct and complete copies of
the Organizational Documents, each as amended to the date hereof, of the Companies and
Subsidiaries.

          5.2. Capitalization of the Companies and Subsidiaries

               5.2.1. As of the date of this Agreement, the authorized capital stock of Lightning consists of
750 shares of common stock, $0 par value per share, of which 750 shares are issued and outstanding.
The authorized capital stock of Great Plains consists of 750 shares of common stock, $0 par value
per share, of which 300 shares are issued and outstanding. The authorized capital stock of BGC
consists of 750 shares of common stock, $0 par value per share, of which 100 shares are issued and
outstanding. The authorized capital stock of ONG consists of 5,000 shares of common stock, $0 par
value per share, of which 2,100 shares are issued or outstanding. The authorized capital stock of
NEO consists of 750 shares of common stock, $0 par value per share, of which 300 shares are issued
or outstanding. GPL has 100 membership units issued and outstanding. The Purchased Shares (a)
constitute all of the issued and outstanding shares of capital stock of the Lightning, Great
Plains, BGC, and all of the issued and outstanding membership units of GPL, (b) are validly
authorized and issued, fully paid, and nonassessable, and (c) will as of Closing be owned
beneficially and of record entirely by Seller as set forth in Schedule 5.2.1. No Purchased
Shares were issued in violation of any preemptive, right of first refusal or other subscription
rights of any shareholder of Lightning, Great Plains, BGC, or of any member of GPL or any other
Person, and all Purchased Shares were offered and sold in compliance with all applicable federal,
state and provincial securities Laws. There are no outstanding options, warrants, calls,
commitments or plans by the Companies to issue any additional shares of its capital stock, or to
pay any dividends on such shares, or to purchase, redeem or retire any outstanding shares of their
capital stock, or membership units, as the case may be, nor are there outstanding any securities or
obligations which are convertible into or exchangeable for any shares of capital stock of the
Companies or membership units as the case may be. There are no stock or membership appreciation
rights, as the case may be, phantom

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stock or similar rights in existence with respect to the Companies. No Person other than
Seller owns or otherwise has any rights to any equity securities of the Companies.

               5.2.2. Lightning owns one hundred percent (100%) of the issued and outstanding equity
interests in ONG and Great Plains owns one hundred percent (100%) of the outstanding equity
interests of NEO. All of such issued and outstanding equity interests were duly authorized for
issuance and were not issued in violation of any preemptive, first refusal or other subscription
rights, and all equity interests in the Subsidiaries were offered and sold in compliance with all
applicable federal, state and provincial securities Laws. There are no outstanding options,
warrants, calls, commitments or plans by the Subsidiaries to issue any additional equity interests,
or to pay any dividends on such equity, or to purchase, redeem or retire any outstanding equity
interests, nor are there outstanding any securities or obligations which are convertible into or
exchangeable for any equity interest in the Subsidiaries. No person other than the Companies own
or otherwise has any rights to any equity interests in the Subsidiaries.

               5.2.3. Neither the Companies nor the Subsidiaries own, directly or indirectly, any capital
stock or other equity interest in any corporation, partnership, joint venture, limited liability
company or partnership, association or other legal entity.

          5.3. Financial Statements; Undisclosed Liabilities 

               5.3.1. Attached hereto as Schedule 5.3.1 are true, correct and complete copies of the
Financial Statements which have been generated in accordance with the books and records of the
Companies and Subsidiaries. Except as set forth in Schedule 5.3.1, the Financial
Statements (a) have been prepared in material accordance with GAAP, and (b) fairly and accurately
present in all material respects the financial position and the results of operations of the
Companies and the Subsidiaries on a consolidated, pro forma basis as of the dates and for the
periods indicated in accordance with GAAP.

               5.3.2. The Companies nor Subsidiaries do not have any material liability or obligation that
would be required to be disclosed on a balance sheet prepared in accordance with GAAP, except for
the liabilities and obligations of the Companies and Subsidiaries (a) disclosed or reserved against
in the Financial Statements, (b) set forth in Schedule 5.3.2, or (c) incurred or accrued in
the Ordinary Course of Business since December 31, 2007.

          5.4. Taxes

     Except as provided in Schedule 5.4: (i) the Companies and the Subsidiaries have timely
extended or filed all material Separate Income Tax Returns and other material Tax Returns known to
the Companies or the Subsidiaries to be required to be filed for the Companies or the Subsidiaries
on a separate basis; (ii) the Companies and the Subsidiaries have paid (or have established
adequate reserves on their books and records amounts for) all material Taxes known to the Companies
or the Subsidiaries to be due and payable in respect of such Tax Returns except those being
contested in good faith; (iii) the Companies and the Subsidiaries have withheld all amounts known
to the Companies or the Subsidiaries to be required to be withheld from payments to employees and
other third parties and have remitted such amounts to the appropriate

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taxing authority in accordance with applicable laws; (iv) neither the Companies nor the
Subsidiaries have executed or filed with any taxing authority (whether federal, state, local or
foreign) any agreement or other document (other than normal requests to extend the time for filing
a Tax Return) extending or having the effect of extending the period for assessment of any Tax that
is due with respect to a Separate Income Tax Return or other material Tax Returns that the
Companies or the Subsidiaries are required to file on a separate basis; and (v) no federal, state,
local or foreign Tax audits or other administrative proceeding, discussions or court proceedings
are presently in progress with regard to any Separate Income Tax Returns or other material Tax
Returns that the Companies or the Subsidiaries are required to file on a separate basis.

          5.5. Tangible Personal Property

               5.5.1. Schedule 5.5.1 sets forth a list of all Tangible Personal Property with a cost
greater than Five Thousand Dollars ($5,000.00) owned by the Companies or Subsidiaries. Except as
set forth in Schedule 5.5.1, the Companies and Subsidiaries have good and valid title (or,
in the case of leased Tangible Personal Property, a good and valid leasehold interest) to all of
the Tangible Personal Property used in the operation of the business of the Companies and
Subsidiaries as currently conducted, in each case free and clear of any material lien except
Assumed Debt.

               5.5.2. All of the Accounts Receivable shown on the Financial Statements and the Accounts
Receivable constituting a part of the Assets arose in the Ordinary Course of Business in connection
with bona fide transactions. Schedule 5.5.2 reflects the procedures the Companies use to
collect their Accounts Receivable.

          5.6. Agreement Related to Other Instruments; Consents

     The execution, delivery and performance by Seller of this Agreement and the other documents,
instruments and agreements to be entered into by Seller pursuant hereto do not and will not, and
the consummation of the transactions contemplated hereby and thereby will not, conflict with or
violate any provision of the Organizational Documents of each Company and Subsidiary.

          5.7. Absence of Changes

     Since December 31, 2007 through the Effective Date, the Companies and Subsidiaries have not,
except as set forth in Schedule 5.7 or in the Ordinary Course of Business:

                    (a) transferred, assigned or conveyed any material Assets ;

                    (b) suffered any material destruction, damage or loss to any material Assets (casualty or
other), whether or not covered by insurance;

                    (c) except as described in Schedule 5.12 or Schedule 3.2(k), entered into any
Material Contract;

23

 

                    (d) except as described in Schedule 5.12 or Schedule 3.2(k), terminated or
amended or suffered the termination or amendment of, failed to perform in all material respects its
obligations under, or suffered or permitted any Default to exist under, any Material Contract or
Real Property Lease;

                    (e) caused or consented to the imposition of a material Lien on any Asset except for the
Assumed Debt;

                    (f) made any distributions to Seller in the form of the return of capital, dividends or cash
distributions;

                    (g) incurred or assumed any indebtedness for borrowed money or issued any debt security except
as set forth in Schedule 5.12;

                    (h) waived any material right of the Companies or Subsidiaries or cancelled any debt or claim
held by the Companies or Subsidiaries;

                    (i) made any loan to any officer, director, employee or shareholder of the Companies or
Subsidiaries;

                    (j) increased, directly or indirectly, the compensation paid or payable to any officer,
director, employee or agent of the Companies or Subsidiaries except in accordance with Section
3.2(j) hereof;

                    (k) hired or fired any employees of the Companies or Subsidiaries or changed any such
employee’s terms or conditions of employment except in accordance with Section 3.2 hereof;

                    (l) taken or suffered any other act that may reasonably be expected to cause or result in a
Material Adverse Effect;

                    (m) received any adverse ruling or denial of any request by any Governmental Authority,
including but not limited to the MPSC, WPSC, PPUC, or PUCO; or

                    (n) agreed to do any of the foregoing items of this Section 5.7.

          5.8. Material Claims

     Except as set forth in Schedule 5.8, there is no litigation, suit, action, proceeding
or claim pending or, to the knowledge of Seller or Seller’s counsel, any basis therefore or threat
thereof against the Companies or Subsidiaries that would be reasonably expected to result in a
Material Adverse Effect on the Company, Subsidiaries or Assets. Except as set forth in
Schedule 5.8, there is no judgment, decree, injunction, order, determination, award,
finding or letter of deficiency of any Governmental Authority or arbitrator outstanding with
respect to the Agreement or against the Companies or Subsidiaries or any of the Assets, except for
existing tariffs issued by the PUCO.

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          5.9. Permits; Compliance With Laws

     Except as set forth in Schedule 5.9 and for Environmental Matters, which are addressed
exclusively in Section 5.17, to Seller’s knowledge the Companies or Subsidiaries possess
all Permits that are required under applicable Law for the ownership or operation of the business
of the Companies or Subsidiaries as currently conducted, to Seller’s knowledge all such Permits are
in full force and effect, and to Seller’s knowledge the Companies and Subsidiaries are in
compliance with all of the terms and conditions of such Permits. No proceeding is pending or, to
Seller’s knowledge, threatened seeking the revocation, cancellation, non-renewal or limitation, in
whole or in part, of any such Permit. Neither the Companies nor the Subsidiaries have received any
written notice from any Governmental Authority alleging violation of any applicable Law. 

          5.10. Real Property

               5.10.1. The Companies and Subsidiaries do not own any fee simple interest in real property
other than the real property, buildings and improvements described in Schedule 5.10.1. The
Companies owns good, valid and marketable fee simple title to such real property, free and clear of
any Lien other than the Mortgage or any other Liens that, individually or in the aggregate, could
not materially adversely affect the function of such property in connection with its use in the
Ordinary Course of Business. Except as set forth on Schedule 5.10.1 and except for
easements, conditions and other conditions of record, no part of such real property is subject to
any assignment, lease, license, sublease or other agreement granting to any Person any right to the
possession, use, occupancy or enjoyment of such property. All such real property complies in all
material respects with all federal, state, provincial and local Laws and all applicable private
restrictions.

               5.10.2. RMO has heretofore delivered to Purchaser true, correct and complete copies of all
leases (including all amendments thereto) of real property currently leased by the Companies or
Subsidiaries, a list of which is set forth in Schedule 5.10.2 (collectively, the “Real
Property Leases”). Each Real Property Lease is valid and binding on the Companies or
Subsidiaries that is a party thereto, and on the other parties thereto, and is enforceable against
the Companies and Subsidiaries and the other parties thereto in accordance with the terms thereof,
except as enforceability may be limited by bankruptcy, insolvency, fraudulent conveyance,
fraudulent transfer, reorganization, moratorium, applicable equitable principles or other similar
Laws from time to time in effect affecting the enforcement of creditors’ rights generally. Except
as described in Schedule 5.10.2, the Companies and Subsidiaries have performed all material
obligations required to be performed by them to date under all such Real Property Leases, and
neither the Companies, Subsidiaries, nor any other party thereto is in Default under any of the
Real Property Leases. Except as set forth in Schedule 5.10.2 and to the knowledge of RMO,
no part of the property leased pursuant to a Real Property Lease is subject to any assignment,
lease, license, sublease, or other agreement granting to any Person other than as specified in such
Real Property Lease any right to the possession, use, occupancy or enjoyment of such leased
property.

               5.10.3. The real property listed in Schedules 5.10.1 and 5.10.2 shall collectively be
referred to herein as the “Real Property”. The Real Property includes all of the Real
Property used by the Companies and Subsidiaries in their business operations. To Seller’s
knowledge, all improvements to the Real Property are located within the boundary lines of the

25

 

Real Property, and no structure, fixture, facility or improvement on any parcel adjacent to
the Real Property encroaches onto any portion of the Real Property. To Seller’s knowledge, the
Companies and Subsidiaries have good and valuable rights of physical and legal ingress and egress
to and from the Real Property from and to the public systems for all usual streets, roads and
utility purposes, and to Seller’s knowledge no condition exists that would reasonably be expected
to result in the termination of such ingress and egress. Except as set forth in Schedule
5.10.3 to Seller’s knowledge the Real Property and any present or proposed use of the Real
Property comply with all applicable Laws and all covenants, conditions, restrictions and similar
matters affecting or applicable to the Real Property. To Seller’s knowledge, the Companies or
Subsidiaries have obtained all Permits from Governmental Authorities (including certificates of
use and occupancy, licenses and other Permits), required in connection with the construction,
repair, maintenance, ownership, use and occupation of the Real Property. To Seller’s knowledge,
there are no pending, or threatened condemnation, fire, health, safety, building or other land use
regulatory proceedings, lawsuits or administration actions related to any portion of the Real
Property and neither the Companies nor the Subsidiaries have received written notice of any
pending or threatened special assessment proceedings affecting any portion of the Real Property.
Except for real property taxes with respect to the tax period in which the Closing Date occurs,
all real property taxes (and applicable penalties and interest, if any) that are due and payable
with respect to the Real Property have been paid or will be paid at or prior to the Closing Date.
There are no outstanding options, rights of first offer, rights of refusal or similar contracts or
rights to purchase the Real Property or any portion thereof or interest therein. No work,
repairs, installation, construction or other services have been performed on any of the Real
Property or materials supplied to the Real Property in the four (4) month period prior to the
Closing Date that could give rise to a materialmen’s, mechanic’s, repair man’s, contractor’s, tax
or other similar lien, or if such work, repairs, installation, construction or other services have
been performed on any of the Real Property or materials supplied to the Real Property, all
providers of such work or materials have been paid in full.

          5.11. Intellectual Property; Software

               5.11.1. Schedule 5.11.1 sets forth a list of all issued Patents and registered
copyrights, trademarks, service marks and trade names owned or licensed by the Companies and
Subsidiaries and currently used in conducting their respective businesses in the United States or
any foreign country, and the annual licensing fee to be paid by the Companies or Subsidiaries for
the use of such Intellectual Property, if any. The Companies and Subsidiaries own, or have the
license or right to use in the United States and in any foreign country in which they conduct
business, all Intellectual Property currently used and necessary to conduct the business of the
Companies and Subsidiaries as presently conducted, in each case in the United States and in each
foreign country where the Companies use such Intellectual Property.

               5.11.2. Schedule 5.11.2(a) sets forth a list of all Software owned or licensed by the
Companies and Subsidiaries, and Schedule 5.11.2(b) sets forth a list of all Software owned
or licensed by any Non-Company Affiliate, which is currently used in conducting any Company or
Subsidiary business in the United States or any foreign country. Schedules 5.11.2(a) and
5.11.2(b) also set forth the annual licensing fee owed by the Companies or Subsidiaries to
utilize said Software. The Companies and Subsidiaries own, or have the license or right to use all
such

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Software currently used and necessary to conduct the business of the Companies or Subsidiaries
as presently conducted, in each case in the United States and in each foreign country where the
Companies or Subsidiaries use such Software.

               5.11.3. To the knowledge of Seller, (a) no Third Party is infringing upon, violating or
interfering with or otherwise engaging in the unlawful appropriation of any right, title, interest
of or the goodwill associates with any Intellectual Property which is owned by any Company or
Subsidiary, and (b) within the last three years no Company or Subsidiary nor any of the Affiliates
has brought or threatened a claim against any Third Party alleging that or otherwise has reason to
believe that any Intellectual Property owned by any Company, Subsidiary or any of the Affiliates is
being infringed upon, violated or interfered with or unlawfully appropriated.

          5.12. Material Contracts

               5.12.1. Schedule 5.12 sets forth a true, correct and complete list, as of the date
hereof, of all material Contracts (other than Real Property Leases and other than those material
Contracts which will be superseded by the Contracts listed in Schedule 3.2) of the
following categories (collectively, the “Material Contracts”):

                    5.12.1.1. any Contract (including any confidentiality agreements) between the Companies or
Subsidiaries and one or more Major Customers;

                    5.12.1.2. any Contract that by its terms limits or otherwise restricts each Company from
engaging or competing in any line of business or in any geographic area;

                    5.12.1.3. any partnership agreement, joint venture agreement or non-wholly-owned limited
liability company operating agreement;

                    5.12.1.4. any Contract evidencing the transportation agreements between BGC, NEO, and ONG, on
one hand, and Cobra Pipeline Company, Ltd. and Orwell-Trumbull Pipeline Company, LLC, on the other
hand;

                    5.12.1.5. any Contracts evidencing the marketing agreements between BGC, NEO and ONG, on one
hand, and ONG Marketing, Inc., John D. Oil and Gas Marketing Company, LLC and NEO Gas Marketing,
LLC, on the other hand.

                    5.12.1.6. any guaranty, surety bond or letter of credit issued or posted, as applicable, by
the Companies or Subsidiaries in which the Companies or Subsidiaries are the guarantor, indemnitor
or reimbursing party, as applicable;

                    5.12.1.7. any agreement requiring payment to any Person of a commission or fee other than in
the Ordinary Course of Business;

                    5.12.1.8. any distributor, sales representative, independent contractor or similar
agreement;

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                    5.12.1.9. any agreement under which the Companies, the Subsidiaries or any of their officers
or directors are restricted from carrying on any business, or competing in any line of business, in
the State where any Company or Subsidiary does business;

                    5.12.1.10. any indenture, trust agreement, loan agreement or note to which a Company or
Subsidiary is a party that involves or evidences outstanding indebtedness, obligation or
liabilities for borrowed monies;

                    5.12.1.11. any agreement for the disposition of a material portion of any Company’s or
Subsidiary’s Assets (other than the sale of inventory in the Ordinary Course of Business);

                    5.12.1.12. any stand-alone indemnification agreement providing for indemnification obligations
on the part of the Companies or Subsidiaries;

                    5.12.1.13. any agreement for the acquisition of any of the properties, securities or other
ownership interest of the Companies or Subsidiaries or the grant to any Person of any options,
rights of first refusal, exclusive negotiation or preferential similar rights to purchase any of
such Assets, properties, securities or other ownership interest; and

                    5.12.1.14. any commitment or agreement to enter into or post any of the foregoing items of
this Section 5.12.1.

               5.12.2. For purposes of Section 5.12.1 above, a contract will be deemed “material” if it
obligates the Company or Subsidiaries to a liability in excess of Ten Thousand Dollars
($10,000.00).

               5.12.3. As of the date of this Agreement, Seller has made available to Purchaser true, correct
and complete copies of all written Material Contracts. Each Material Contract is in full force and
effect, and is valid and binding on the Companies and Subsidiaries, the other parties thereto, and
is enforceable against the Companies and Subsidiaries and the other parties thereto in accordance
with the terms thereof, except as enforceability may be limited by bankruptcy, insolvency,
fraudulent conveyance, fraudulent transfer, reorganization, moratorium, applicable equitable
principles or similar laws from time to time in effect affecting the enforcement of creditors’
rights generally. Except as set forth in Schedule 5.12, to Seller’s knowledge the
Companies and Subsidiaries have performed all material obligations required to be performed by them
to date under such Material Contract, and to Seller’s knowledge neither the Companies,
Subsidiaries, nor any other party thereto is in Default under such Material Contract, nor to
Seller’s knowledge does any condition exist that with notice or lapse of time would constitute a
Default thereunder. No surety bond or letter of credit that constitutes a Material Contract has
been called or drawn upon.

          5.13. Labor Matters

     Except as set forth on Schedule 5.13, within the last three (3) years, (a) the
Companies and Subsidiaries have not been the subject of any union activity, nor has there been any
strike of any kind called against the Companies, Subsidiaries, nor has there been any lockout or
work stoppage involving the Companies or Subsidiaries, and (b) the Companies and Subsidiaries have

28

 

not violated any applicable federal, state or provincial Law relating to labor or labor
practices. Except as set forth on Schedule 5.13, neither the Companies nor the
Subsidiaries are a party to any collective bargaining agreement.

          5.14. ERISA and Related Matters

               5.14.1. Schedule 5.14 sets forth a true, correct and complete list, as of the date
hereof, of all Company Plans. Seller has made available to Purchaser true, correct and complete
copies of the most recent summary plan descriptions, if any, with respect to the Company Plans.

               5.14.2. The Companies and Subsidiaries do not contribute or have any obligation to contribute,
and has not within six (6) years prior to the date of this Agreement contributed or had an
obligation to contribute, to a multiemployer plan (within the meaning of Section 3(37) of ERISA) or
a Benefit Plan (other than a Seller Plan) subject to Title IV of ERISA, Section 302 of ERISA or
Section 412 of the Code.

               5.14.3. With respect to any “employee benefit plan,” within the meaning of Section 3(3) of
ERISA, that is not a Company Plan, and which is sponsored, maintained, or contributed to, or has
been sponsored, maintained, or contributed to within six (6) years prior to the date of this
Agreement, by the Companies and Subsidiaries or any corporation, trade, business, or entity under
common control with the Companies and Subsidiaries, within the meaning of Section 414(b), (c), or
(m) of the Code or Section 4001 of ERISA, to Seller’s knowledge: (a) no withdrawal liability,
within the meaning of Section 4201 of ERISA, has been incurred, which withdrawal liability has not
been satisfied, (b) no liability to the Pension Benefit Guaranty Corporation has been incurred by
any such entity, which liability has not been satisfied, (c) no accumulated funding deficiency,
whether or not waived, within the meaning of Section 302 of ERISA or Section 412 of the Code has
been incurred, and (d) all contributions (including installments) to such plan required by Section
302 of ERISA and Section 412 of the Code have been timely made.

               5.14.4. In connection with the consummation of the transactions contemplated by this
Agreement, to Seller’s knowledge no payments of money or other property, acceleration of benefits,
or provision of other rights have been or will be made hereunder, under any agreement contemplated
herein, or under any Company Plan that would be reasonably likely to be nondeductible under Section
280G of the Code, whether or not some other subsequent action or event would be required to cause
such payment, acceleration, or provision to be triggered.

          5.15. Guaranties or Bonds

     Schedule 5.15 sets forth a true, correct and complete list, as of the date hereof, of
all Guaranties or Bonds.

          5.16. Employees

     Except as set forth on Schedule 5.16, the Companies and Subsidiaries do not have any
written or oral contract with any individual currently engaged, or previously engaged, in the
business of the Companies or Subsidiaries as an employee, independent contractor or otherwise.
Schedule 5.16 sets forth a true, correct and complete list, as of the date(s) set forth
therein, of the

29

 

names, position and initial employment date of all current employees of the Companies and
Subsidiaries. No changes in such base pay for such employees have been promised or authorized by
the Companies or Subsidiaries, except in the Ordinary Course of Business or except as described in
Schedule 5.16. Except as set forth in Schedule 5.16, there are no loans or other
obligations payable or owing by the Companies or Subsidiaries to any officer, director or employee
of the Companies or Subsidiaries, except salaries, wages, vacation pay, bonuses and salary
advances and reimbursement of expenses incurred and accrued in the Ordinary Course of Business, nor
are any loans or debts payable or owing by any such individuals to the Companies or Subsidiaries,
nor have the Companies nor the Subsidiaries guaranteed any of such individuals’ respective loans or
material obligations. The Companies and Subsidiaries are not (a) delinquent in the payment to any
of their employees or independent contractors any wages, salaries, commissions, bonuses or other
direct compensation for any services performed by them or amounts required to be reimbursed to such
employees or consultants or any Taxes or any penalty for failure to comply with any of the
foregoing or (b) liable for any payment to any trust or other fund or to any Governmental
Authority, with respect to unemployment compensation benefits, social security or other benefits or
obligations for employees (other than routine payments to be made in the Ordinary Course of
Business and consistent with past practices). The Seller is not aware and the Companies and
Subsidiaries have not received notice that any employee or independent contractor of the Companies
or Subsidiaries intends to terminate his or her employment relationship or engagement with the
Companies or Subsidiaries. The Seller is not aware and the Companies and Subsidiaries have not
received notice that any employee, director or officer of the Companies and Subsidiaries are
obligated under any contract or subject to any judgment, decree or administrative order that would
conflict or interfere with (a) the performance of the Person’s duties as an employee, director or
officer of the Companies or Subsidiaries, or (b) the business of the Companies or Subsidiaries as
conducted or proposed to be conducted. Between the Effective Date and the Closing Date, no more
than twenty percent (20%) of the total employees engaged by the Companies or Subsidiaries shall
have resigned, been terminated for any reason, or had their working hours materially reduced except
in the Ordinary Course of Business.

          5.17. Environmental Matters

     Except as set forth in Schedule 5.17. to Seller’s knowledge:

               5.17.1. the Companies and Subsidiaries and their respective operations are in material
compliance with all applicable Environmental Laws;

               5.17.2. the Companies and Subsidiaries are not subject to any pending or threatened claim,
action, suit, investigation, inquiry or proceeding under any Environmental Law and to Seller’s
knowledge there is no such action proposed or threatened;

               5.17.3. all Permits, if any, required to be obtained by the Companies and Subsidiaries under
any Environmental Law in connection with their respective operations as they are currently being
conducted, including those relating to the management of Hazardous Substances, have been obtained
by the Companies or Subsidiaries, and are in full force and effect on the date hereof;

30

 

               5.17.4. there have been no releases of Hazardous Substances on any real property owned or
leased by the Companies and Subsidiaries in connection with the operations of the Companies or
Subsidiaries that requires remediation under applicable Environmental Laws;

               5.17.5. no real property formerly owned or leased by each Company and Subsidiary in connection
with the operations of the operations and each Company and Subsidiary has been contaminated with
any Hazardous Substances during or prior to such period of ownership or operation which could
reasonably be expected to result in liability relating to or requiring any remediation under the
applicable Environmental Laws;

               5.17.6. no Company or Subsidiary is subject to any order, decree, injunction or other
arrangement with any Governmental Authority or any agreement with any third party pursuant to which
any Company or Subsidiary is indemnifying any third party for liability under any Environmental
Laws; and

               5.17.7. Seller and each Company and Subsidiary shall make available to Purchaser on a
confidential basis all environmental site assessment reports, studies and related documents in the
possession of each Company, Seller or any Non-Company Affiliate and relating to environmental
matters in connection with operation of the Assets.

          5.18. Insurance Coverage 

               5.18.1. sets forth a true, correct and complete summary of all Seller Insurance Policies
applicable to the Companies and Subsidiaries and any surety bonds (if applicable) covering the
Companies, Subsidiaries, the Assets, the business of the Companies and Subsidiaries, and the
employees of the Companies and Subsidiaries, other than any such insurance policies related to
Benefit Plans. There is no claim by the Companies or Subsidiaries pending under any such policies
or bonds as to which coverage has been questioned, denied or disputed by the underwriters of such
policies and bonds. All premiums due and payable under such policies and bonds have been paid, and
the Companies and Subsidiaries are otherwise in material compliance with the terms and conditions
of all such policies and bonds.  To the knowledge of Seller, there is no threatened
termination of such policies and bonds.

          5.19. Governmental Filings: No Violations

               5.19.1. Except as disclosed on the attached Schedule 5.19, to Seller’s knowledge no
notices, reports or other filings are required to be made by Seller, the Companies or Subsidiaries
with, nor are any consents, registrations, approvals, permits or authorizations required to be
obtained by Seller, the Companies or Subsidiaries from, any Governmental Authority in connection
with the execution and delivery of this Agreement by Seller and the consummation of the
transactions contemplated hereby, except those that the failure to make or obtain would not have a
Material Adverse Effect.

               5.19.2. Subject to the filings, registrations, consents, approvals, permits, authorizations
and/or notices referred to in Schedule 5.19 and/or in Schedule 6.2, Seller’s
execution, delivery and performance of this Agreement and the consummation of the transactions
contemplated hereby will not constitute or result in (i) a breach or violation of any provisions of
the Organizational Documents of each Company or Subsidiary, (ii) a breach or

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violation of any Law of any Governmental Authority by which each Company is bound or (iii) a
breach or violation of, or a default under, the acceleration of any obligations under, or the
creation of a Lien on the assets of any Company or Subsidiary (with or without notice, lapse of
time or both) pursuant to, any Contract binding upon any Company or Subsidiary, except, in the case
of clauses (ii) and (iii) above, for any breach, violation, default, acceleration or creation that
would not have a Material Adverse Effect.

     Except as disclosed on the attached Schedule 5.19, neither the Seller nor the
Companies needs to provide any notice to, or obtain any Permits from any Governmental Authority for
the consummation of the transactions contemplated by this Agreement

          5.20. Accounts Receivable

     Schedule 5.20 sets forth a true and correct list of all Accounts Receivable of the
Companies and Subsidiaries as of the end of the business day on August 21, 2008. All Accounts
Receivable represent valid obligations and to Seller’s knowledge are not subject to any set offs or
counterclaims. All Accounts Receivable and all Accounts Receivable arising between the Effective
Date and the Closing Date are owned by the Companies and Subsidiaries. Except as set forth in
Schedule 5.20, no Account Receivable has been outstanding for more than sixty (60) days.
To Seller’s knowledge, the Companies and Subsidiaries have not received written notice from an
account debtor stating that any Account Receivable in an amount in excess of Ten Thousand Dollars
($10,000.00) is subject to any contest, claim or set off by such account debtor. No discount or
allowance from any Account Receivable has been made or agreed to.

          5.21. Gratuitous Payments

     Neither the Companies, Subsidiaries, nor any of the directors, members, executives,
independent contractors or employees of the Companies or Subsidiaries, nor any agents acting on
behalf of or for the benefit of the Companies or Subsidiaries, directly or indirectly, has (i)
offered or paid any remuneration, in cash or in kind, to, or made any financial arrangements with,
any past or present customers or third party payors of the Companies, Subsidiaries, or potential
customers of the Companies or Subsidiaries in order to obtain business from such customers, other
than standard pricing or discount arrangements consistent with proper legal and business practices,
(ii) given, or agreed to give, or is aware that there has been made, or that there is an agreement
to make, any gift or gratuitous payment of any kind, nature or description (whether in money,
property or services) to any customer, third party payor, supplier, source of financing, landlord,
sub-tenant, licensee or anyone else other than in connection with promotional or entertainment
activities consistent with proper legal and business practices, (iii) made, or has agreed to make,
or is aware that there has been made, or that there is any agreement to make, any illegal political
contribution or gift, or any contributions, payments or gifts of its funds or property to, or for
the private use of, any governmental official, employee or agent, where either the contribution,
payment or gift or the purpose of such contribution, payment or gift is illegal under the laws of
the United States, or under the laws of any state thereof or any other jurisdiction (foreign or
domestic) under which such payment or gift was made, (iv) established or maintained any unrecorded
fund or asset for any purpose, or has made any false or artificial entries on any of its books or
records for any reason or (v) made, or has agreed to make, or is aware that there has been made, or
that there is any agreement to make, any payments to any

32

 

person with the intention or understanding that any part of such payment was to be used for
any purpose other than that described in the documents supporting the payments. No notice or claim
inconsistent with the representations in this Section 5.21 has been received by the
Companies or Subsidiaries.

          5.22. Disclosures

     Neither this Agreement, nor any other agreement entered into pursuant to the transactions
contemplated by this Agreement, nor any schedule, exhibit, report, document, certificate or
instrument prepared by and furnished by the Seller to Purchaser or its counsel in connection with
the transactions contemplated by this Agreement contains or will contain any untrue statement of a
material fact or omits or will omit to state a material fact necessary in order to make the
statements contained herein or therein, in light of the circumstances under which they were made,
not misleading except to the extent that any such statement or omission will not be reasonably
likely to have a material effect on the business, financial condition, prospects, or operation of
the Companies, Subsidiaries or Assets.

          5.23. Litigation

     Except as set forth in Schedule 5.8, there is no action, suit or proceeding at law or
in equity against any Company or Subsidiary pending, or to the knowledge of Seller, threatened,
which (a) relates to or involves uninsured amounts of more than $5,000, (b) would, if decided
adversely to Seller or any Company or Subsidiary, prohibit the transactions contemplated by this
Agreement or (c) is reasonably likely to have a Material Adverse Effect. No Company or Subsidiary
has been permanently or temporarily enjoined or barred by order, judgment or decree requiring any
Company or Subsidiary to take, or refrain from taking, action with respect to its business.

          5.24. Brokers and Finders

     No broker or finder has been retained or employed by Seller in connection with the
transactions contemplated in this Agreement. Each Company and Subsidiary does not have, and will
not have, any financial obligation to any broker or finder.

          5.25. Regulatory Proceedings

     As of the date hereof, neither the Companies nor the Subsidiaries , (a) have rates which have
been or are being collected subject to refund, pending final resolution of any proceeding pending
before a Governmental Authority or on appeal to the Courts or (b) are a party to any proceeding
before a Governmental Authority or on appeal from orders of a Governmental Authority which, in each
case, has resulted or would reasonably be expected to result in orders have a Material Adverse
Effect.

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6. REPRESENTATIONS AND WARRANTIES OF RMO REGARDING SELLER, THE COMPANIES, AND SUBSIDIARIES AND THE PURCHASED SHARES

     RMO represents and warrants to Purchaser that except as otherwise set forth in this Agreement:

          6.1. Power and Authority; Enforceability

     Seller, the Companies, and the Subsidiaries have all requisite power and authority to execute
and deliver this Agreement and the other documents, instruments and agreements to be entered into
by it pursuant hereto, to perform its obligations hereunder and thereunder, and to consummate the
transactions contemplated hereby and thereby. This Agreement has been duly and validly executed
and delivered by Seller, and, on the Closing Date, all other agreements to be entered into by
Seller pursuant hereto will have been duly and validly executed and delivered by Seller. This
Agreement is, and each and every agreement, document and instrument provided for herein to be
executed and delivered and to which Seller, the Companies, and the Subsidiaries are a party will
be, when executed and delivered by the parties thereto, valid and binding on Seller, the Companies,
and the Subsidiaries and enforceable against Seller, the Companies, and the Subsidiaries in
accordance with its respective terms, except as enforceability may be limited by applicable
equitable principles or by bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer,
reorganization, moratorium or similar Laws from time to time in effect affecting the enforcement of
creditors’ rights generally.

          6.2. No Violation or Conflict by Seller

     Except as set forth in Schedule 6.2, the execution, delivery and performance by Seller
of this Agreement and each and every other agreement, document and instrument to be entered into by
Seller, the Companies, or Subsidiaries pursuant hereto do not and will not, and the consummation of
the transactions contemplated hereby and thereby will not, constitute an occurrence of a Default or
require the consent or approval of any Person under any provision of any Material Contract to which
Seller, the Companies, or Subsidiaries are a party or by which they are bound.

          6.3. Seller Governmental Approvals

     Except as set forth in Schedule 5.19, the execution, delivery and performance by
Seller of this Agreement, and the other documents, instruments and agreements to be entered into by
Seller, the Companies, or Subsidiaries pursuant hereto, do not and will not, and the consummation
of the transactions contemplated hereby and thereby will not (a) violate any consent, judgment,
order or decree or any applicable rule or regulation of any Governmental Authority to which Seller,
the Companies, Subsidiaries or any Non-Company Affiliate is a party or is subject to, (b) require
of Seller, the Companies, Subsidiaries, or any Non-Company Affiliate a filing or registration with
any Governmental Authority, or (c) require Seller, the Companies, Subsidiaries or any Non-Company
Affiliate to obtain any consent, approval, Permit, certificate or order of any Governmental
Authority under applicable Law or by any applicable consent, judgment, order or decree or any
applicable rule or regulation of any Governmental Authority.

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          6.4. Title to the Purchased Shares

     As of the Closing Date, Seller will collectively own, beneficially and of record, all of the
Purchased Shares free and clear of any and all Liens except as set forth on Schedule 6.4.
There are no outstanding subscriptions, options, warrants, rights of first refusal or other
agreements or commitments, other than this Agreement, obligating Seller to transfer, or granting an
option or right by Seller to any Person to purchase or acquire from Seller the Purchased Shares or
any other securities of the Companies or Subsidiaries.

          6.5. Litigation Against Seller

     Except as set forth in Schedule 6.5, to Seller’s knowledge there is no litigation,
suit, action, proceeding, claim or investigation pending or, to the knowledge of Seller, proposed
or threatened against Seller, the Companies, or Subsidiaries that (a) affects Seller, any
Non-Company Affiliate, the Companies, Subsidiaries, or the Assets, and could, individually or in
the aggregate, if pursued or resulting in a judgment against Seller, reasonably be expected to
materially adversely effect on the ability of Seller to consummate the transactions described
herein, or (b) seeks restraint, prohibition, or other injunctive relief in connection with this
Agreement or the consummation of the transactions contemplated hereby. There is no judgment,
decree, injunction, order, determination, award, finding or letter of deficiency of any
Governmental Authority or arbitrator outstanding against Seller, the Companies, or Subsidiaries
with respect to this Agreement.

7. REPRESENTATIONS AND WARRANTIES OF PURCHASER

     Purchaser represents and warrants to Seller that:

          7.1. Organization and Standing

     Purchaser is a corporation duly incorporated, validly existing and in good standing under the
laws of the State of Montana.

          7.2. Corporate Power and Authority; Enforceability

     Purchaser has all requisite corporate power and authority to execute and deliver this
Agreement and the other documents, instruments and agreements to be entered into by it pursuant
hereto, to perform its obligations hereunder and thereunder, and to consummate the transactions
contemplated hereby and thereby. The execution, delivery and performance by Purchaser of this
Agreement and each and every other agreement, document and instrument to be executed, delivered and
performed by Purchaser in connection herewith have been duly authorized and approved by all
requisite corporate action on the part of Purchaser. This Agreement has been duly and validly
executed and delivered by Purchaser, and, on the Closing Date, all other agreements to be entered
into by Purchaser pursuant hereto will have been duly and validly executed and delivered by
Purchaser. This Agreement is, and each and every agreement, document and instrument provided for
herein to be executed and delivered and to which Purchaser is a party will be, when executed and
delivered by the parties thereto, valid and binding on Purchaser, and enforceable against Purchaser
in accordance with their respective terms, except as enforceability may be limited by applicable
equitable principles or by

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bankruptcy, insolvency, fraudulent conveyance, fraudulent transfer, reorganization, moratorium
or similar Laws from time to time in effect affecting the enforcement of creditors’ rights
generally.

          7.3. No Violation or Conflict by Purchaser

     Except as set forth in Schedule 7.3, the execution, delivery and performance by
Purchaser of this Agreement and each and every other agreement, document and instrument to be
entered into by Purchaser pursuant hereto do not and will not, and the consummation of the
transactions contemplated hereby and thereby will not, conflict with or violate any provisions of
the articles of incorporation or the bylaws of Purchaser, or constitute an occurrence of Default or
require the consent or approval of any Person under any provision of any contract or agreement to
which Purchaser is a party or by which it is bound.

          7.4. Purchaser Governmental Approvals

     Except as set forth in Schedule 7.4, the execution, delivery and performance by
Purchaser of this Agreement, and the other documents, instruments and agreements to be entered into
by Purchaser pursuant hereto, do not and will not, and the consummation of the transactions
contemplated hereby and thereby will not (a) violate any consent, judgment, order or decree or any
rule or regulation of any Governmental Authority to which Purchaser or any Affiliate of Purchaser
is a party or is subject to, (b) require of Purchaser or any Affiliate of Purchaser a filing or
registration with any Governmental Authority, or (c) require Purchaser or any Affiliate of
Purchaser to obtain any consent, approval, Permit, certificate or order of any Governmental
Authority under applicable Law or by any applicable consent, judgment, order or decree or any
applicable rule or regulation of any Governmental Authority.

          7.5. Litigation Against Purchaser

     There is no litigation, suit, action, proceeding, claim or investigation pending or, to the
knowledge of Purchaser, proposed or threatened against Purchaser that (a) affects Purchaser or any
Affiliate of Purchaser and could, individually or in the aggregate, if pursued or resulting in a
judgment against Purchaser or such Affiliate, reasonably be expected to materially adversely effect
the ability of Purchaser to consummate the transactions described herein, or (b) seeks restraint,
prohibition, or other injunctive relief in connection with this Agreement or the consummation of
the transactions contemplated hereby. There is no judgment, decree, injunction, order,
determination, award, finding or letter of deficiency of any Governmental Authority or arbitrator
outstanding against Purchaser with respect to this Agreement.

          7.6. Purchase for Investment

     Purchaser is acquiring the Purchased Shares pursuant to the exemption provided by Section 4(2)
of the Securities Act of 1933, as amended, and has made, independently and without reliance on
Seller (except to the extent that Purchaser has relied upon the representations and warranties of
Seller contained herein), its own analysis of the Purchased Shares, the Companies and Subsidiaries
and the Assets for the purpose of acquiring the Purchased Shares, and Purchaser has had reasonable
and sufficient access to such documents and other information and materials as it considers
appropriate to make its necessary evaluation. Purchaser is acquiring the

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Purchased Shares solely for its own account for investment and not with a view to or for the
distribution thereof. Purchaser acknowledges that the Purchased Shares are not registered under
the Securities Act of 1933, as amended, and that none of the Purchased Shares may be transferred or
sold except pursuant to the registration provisions of the Securities Act of 1933, as amended, or
pursuant to an applicable exemption therefrom. Purchaser is able to bear the economic risk of its
investment in the Purchased Shares pursuant to this Agreement, and has sufficient knowledge and
experience in financial and business matters in that it is capable of evaluating the merits and
risks of the acquisition of the Purchased Shares, and Purchaser is able to financially bear the
risk thereof.

          7.7. Knowledge of Inaccuracies 

     Purchaser shall promptly notify the Seller if at any time prior to the Closing Purchaser
acquires knowledge of any inaccuracy in any of the representations made by the Seller in this
Agreement, provided, however, that Purchaser’s failure to inform Seller shall not be considered a
breach hereunder.

          7.8. Investigations

     Purchaser acknowledges that it has been furnished with and has an opportunity to read this
Agreement to which it is a party and all materials relating to the Company, the Subsidiaries and
the Assets that have been requested by Purchaser. Purchaser further acknowledges that it has been
given ample opportunity to ask questions and request information of, and receive answers from
Seller concerning the Company, the Subsidiaries and the Assets, including but not limited to
information relating to the business, finances, operations and prospects of the Company and the
Subsidiaries.

          7.9. “As Is” Sale

     EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF RMO, AND OF RMO ON BEHALF OF THE COMPANIES,
AND SUBSIDIARIES SET FORTH IN THIS AGREEMENT, PURCHASER UNDERSTANDS AND AGREES THAT THE ASSETS,
INCLUDING THE TANGIBLE PERSONAL PROPERTY, ARE BEING ACQUIRED “AS IS, WHERE IS” ON THE CLOSING DATE,
AND IN THEIR CONDITION ON THE CLOSING DATE “WITH ALL FAULTS,” AND THAT PURCHASER IS RELYING ON ITS
OWN EXAMINATION OF THE ASSETS. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING AND EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES OF RMO, AND OF RMO ON BEHALF OF THE COMPANIES, AND SUBSIDIARIES
EXPRESSLY SET FORTH IN THIS AGREEMENT, PURCHASER UNDERSTANDS AND AGREES THAT RMO, THE COMPANIES AND
SUBSIDIARIES EXPRESSLY DISCLAIM ANY REPRESENTATIONS OR WARRANTIES AS TO THE OPERATION OF THE
ASSETS, INCLUDING THE TITLE, CONDITION, VALUE OR QUALITY OF THE ASSETS OR THE PROSPECTS,
LIABILITIES, RISKS AND OTHER INCIDENTS OF THE ASSETS AND ANY REPRESENTATION OR WARRANTY OF
MERCHANTABILITY, USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE
ASSETS OR ANY PART THEREOF, OR AS TO THE WORKMANSHIP THEREOF OR THE ABSENCE OF ANY DEFECTS THEREIN,
WHETHER LATENT OR PATENT.

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PURCHASER FURTHER AGREES THAT, EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES OF RMO, AND OF
RMO ON BEHALF OF THE COMPANIES AND SUBSIDIARIES EXPRESSLY SET FORTH IN THIS AGREEMENT AND THE
SCHEDULES AND EXHIBITS ATTACHED HERETO, NO DUE DILIGENCE MATERIALS OR OTHER INFORMATION OR
MATERIALS PROVIDED BY, OR COMMUNICATION MADE BY, SELLER, THE COMPANIES AND SUBSIDIARIES OR ANY
REPRESENTATIVE OF SELLER WILL CONSTITUTE, CREATE OR OTHERWISE CAUSE TO EXIST ANY REPRESENTATION OR
WARRANTY WHATSOEVER, WHETHER OR NOT EXPRESSLY DISCLAIMED BY THE FOREGOING.

8. CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER

     The obligations of Purchaser to consummate the transactions contemplated by this Agreement
shall be subject to the satisfaction, on or before the Closing, of each and every one of the
following conditions, all or any of which may be waived, in whole or in part, by Purchaser for
purposes of consummating such transactions:

          8.1. Representations True at the Closing

     The representations and warranties made by RMO or of RMO on behalf of the Companies, and
Subsidiaries in this Agreement shall be true and correct in all material respects when made, and
immediately prior to the Closing with the same force and effect as though such representations and
warranties had been made as of such time.

          8.2. Covenants of Seller

     Seller, the Companies, and Subsidiaries shall have duly performed in all material respects all
of the covenants, acts and undertakings to be performed by them respectively on or prior to the
Closing pursuant to the Agreement, and a duly authorized officer of the Companies and Subsidiaries,
and RMO himself shall have delivered to Purchaser a certificate in the form attached hereto as
Exhibit A dated as of the Closing Date certifying to the fulfillment of this condition and
the condition set forth in Section 8.1.

          8.3. No Injunction, Etc.

     No action, proceeding, investigation, regulation or legislation shall have been instituted or
threatened by any Person other than Purchaser or any Affiliate of Purchaser before any court or
Governmental Authority to enjoin, restrain, or prohibit the consummation of the transactions
contemplated hereby.

          8.4. Consents, Approvals and Waivers

     Seller’s execution and delivery of this Agreement and consummation of the transactions
contemplated hereby shall have been approved by (a) all Governmental Authorities, including the
Regulatory Approval, (b) all of Seller’s lenders whose approval is required under any applicable
loan documents, and (c) Purchaser’s lenders, LaSalle Bank N.A. and the holders of those current
unsecured bond debt notes due June 29, 2017, but only if such lender approvals are required under
the applicable loan documents, and no such approvals, independently or in the

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aggregate, shall have resulted in a Material Adverse Effect on the regulatory treatment of the
Companies or Subsidiaries. In addition, this Agreement shall have been approved by the special
committee of the board of directors of Purchaser, the board of directors of Purchaser (other than
Richard M. Osborne in his individual capacity, and Thomas J. Smith), and Purchaser’s shareholders.
Either (i) Purchaser shall have received a true, correct and complete copy of each consent,
approval, waiver and agreement required to be obtained by Seller no later than the Closing pursuant
to Section 3.3, or (ii) if Seller was unable to obtain such consent, approval, waiver or
agreement after having complied with its obligations under Section 3.3, Seller shall have
obtained for, or provided Purchaser with, in a form reasonably acceptable to Purchaser, the
economic practical benefit to Purchaser as if such consent, approval, waiver or agreement had been
received.

          8.5. Absence of Material Adverse Effect

     No Material Adverse Effect that is not as of the Effective Date hereof contained in a schedule
shall have occurred between the Effective Date and the Closing Date.

9. CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLER

     The obligations of Seller to consummate the transactions contemplated by this Agreement shall
be subject to the satisfaction, on or before the Closing, of each and every one of the following
conditions, all or any of which may be waived, in whole or in part, by Seller for purposes of
consummating such transactions:

          9.1. Representations True at Closing

     The representations and warranties made by Purchaser in this Agreement shall be true and
correct in all material respects when made, and immediately prior to the Closing with the same
force and effect as though such representations and warranties had been made on and as of such
time.

          9.2. Covenants of Purchaser

     Purchaser shall have duly performed in all material respects all of the covenants, acts and
undertakings to be performed by it on or prior to the Closing pursuant to the Agreement, and the
President of Purchaser shall have delivered to Seller a certificate in the form attached hereto as
Exhibit B dated as of the Closing Date certifying to the fulfillment of this condition and
the condition set forth in Section 9.1.

          9.3. No Injunction, Etc.

     No action, proceeding, investigation, regulation or legislation shall have been instituted or
threatened by any Person other than Seller, the Companies, Subsidiaries, or any Non-Company
Affiliate before any court or Governmental Authority to enjoin, restrain or prohibit the
consummation of the transactions contemplated hereby.

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          9.4. Consents, Approvals and Waivers

     Purchaser’s execution and delivery of this Agreement and the consummation of the transactions
contemplated hereby shall have been approved by (a) the special committee of the board of directors
of Purchaser, the board of directors of Purchaser (other than Richard M. Osborne in his individual
capacity, and Thomas J. Smith), and approval by Purchaser’s shareholders, (b) all Governmental
Authorities whose approvals are required by Law, (c) Purchaser’s lenders, LaSalle Bank N.A. and
the holders of those current unsecured bond debt notes due June 29, 2017, but only if such lender
approvals are required under the applicable loan documents, and (d) all of Seller’s lenders whose
approval is required under any applicable loan documents. Seller shall have received a true,
correct and complete copy of each consent, approval, waiver and agreement required to be obtained
by Purchaser no later than the Closing pursuant to Section 3.3. Seller’s execution and
delivery of this Agreement and the consummation of the transactions contemplated hereby shall have
been approved by all Governmental Authorities whose approvals are required by Law, except for any
such approval which could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect on the ability of Seller to consummate the transactions described herein.

10. CLOSING

          10.1. Time and Place of Closing

     Upon the terms and subject to the conditions set forth herein, the Closing shall take place at
the offices of Kohrman, Jackson, & Krantz., P.L.L., 1375 E. Ninth Street, 20th Floor,
Cleveland, Ohio, 44114, commencing at 10:00 a.m., on the first (1st ) Business Day of
the first (1st) full month following the Business Day on which all of the conditions to
the Closing set forth in Sections 8 and 9 are satisfied or waived, or at such other
place, time or date the parties may agree in writing (the date of the Closing being referenced
herein as the “Closing Date”). In the event the Closing Date has not occurred by the end
of the business day which is twelve (12) months following the effective date of this Agreement,
then unless the Closing has been extended by the mutual agreement of the parties, this Agreement
shall terminate and be of no further effect except as to any remedy set forth in this Agreement
with respect to a breach hereof which results in a failure to close or as may otherwise be provided
in this Agreement.

          10.2. Transactions at Closing

     At the Closing, each of the following shall occur:

               10.2.1. Seller’s Performance. At the Closing, Seller shall deliver to Purchaser each
of the following:

                    10.2.1.1. all certificates representing the Purchased Shares or, if applicable, replacement
certificates together with lost certificate affidavits and indemnifications (in form and substance
reasonably acceptable to Purchaser), duly endorsed for transfer or accompanied with executed blank
stock powers (in form and substance reasonably acceptable to Purchaser), together with a new
certificate representing such shares issued in the name of Purchaser;

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                    10.2.1.2. original stock ledgers, articles of incorporation, certificates of incorporation,
charters, certificates of formation, bylaws, joint venture agreements, partnership agreements,
limited liability company operating agreements, and board of directors’, shareholders’ and members’
minutes of the Companies and Subsidiaries;

                    10.2.1.3. the certificate of Seller as described in Section 8.4;

                    10.2.1.4.
evidence of the consents, approvals, waivers and agreements described in
Section 8.4 in a form reasonably satisfactory to Purchaser;

                    10.2.1.5. certificates of existence or good standing of the Companies and Subsidiaries, as
of the most recent practicable date, from the appropriate Governmental Authority of the
jurisdiction of their respective incorporations or formations and the jurisdictions in which each
is qualified to do business;

                    10.2.1.6. resignations, or evidence of termination of his or her office, by each director,
manager, and officer of the Companies and Subsidiaries, unless otherwise agreed by the parties;

                    10.2.1.7. such other evidence of the performance of all covenants and satisfaction of all
conditions required of Seller by this Agreement, at or prior to the Closing, as Purchaser may
reasonably require;

                    10.2.1.8. all books and records relating to the operation of the Companies and Subsidiaries,
including but not limited to all such electronic records, files, ledgers and other documentation
reasonably required by Purchaser in connection with the ongoing operation of the Companies and
Subsidiaries; and

                    10.2.1.9.
such documents necessary to evidence Seller‘s release from the assumed debt
obligations set forth in Section 2.2 including but not limited to any acknowledgments,
consents or any lender’s of such assumed debt.

     10.2.2. Purchaser’s Performance. At the Closing, Purchaser shall deliver to Seller
each of the following:

                    10.2.2.1. the certificate of the President of Purchaser described in Section 9.2;

                    10.2.2.2. certificates of existence or good standing of Purchaser, as of the most recent
practicable date, from the appropriate Governmental Authority of the jurisdiction of its
incorporation;

                    10.2.2.3. Secretary or Assistant Secretary certified copies of resolutions of the board of
directors of Purchaser approving the transactions contemplated by this Agreement;

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                    10.2.2.4. Secretary or Assistant Secretary certificates of incumbency for the officers of
Purchaser who sign on behalf of Purchaser this Agreement and any other documents, instruments or
agreements to be entered into by Purchaser pursuant hereto;

                    10.2.2.5. such other evidence of the performance of all covenants and satisfaction of all
conditions required of Purchaser by this Agreement, at or prior to the Closing, as Seller may
reasonably require;

                    10.2.2.6. a receipt of Purchaser evidencing Purchaser’s receipt of the Purchased Shares;

                    10.2.2.7. such documents necessary to evidence Purchaser’s assumption of Seller’ s debt as
provided in Section 2.2; and

                    10.2.2.8 copy of corporate resolutions of the Purchaser authorizing this transaction.

11. SURVIVAL OF REPRESENTATION AND WARRANTIES; INDEMNIFICATION

          11.1. Survival of Representations, Warranties and Agreements

                    11.1.1. All representations, warranties, covenants, indemnities and obligations made or
undertaken by Seller in this Agreement are material, have been relied upon by Purchaser and shall
survive the Closing hereunder as set forth in Section 11.5, and shall not merge in the
performance of any obligation by any party hereto.

                    11.1.2. All representations, warranties, covenants, indemnities and obligations made or
undertaken by Purchaser in this Agreement are material, have been relied upon by Seller and shall
survive the Closing hereunder as set forth in Section 11.5, and shall not merge in the
performance of any obligation by any party hereto.

          11.2. Agreements to Indemnify Purchaser Indemnitees

                    11.2.1. Subject to the other provisions of this Section 11 and subject to Section
5.25, RMO hereby agrees to indemnify and hold harmless Purchaser, each Affiliate of Purchaser,
their respective directors and officers, and their respective successors and assigns (collectively,
“Purchaser Indemnitees”), from and against any and all liability, obligation, loss, Lien,
damage, injury, cost and expense (including reasonable attorneys’ fees and costs and expenses
related thereto) (collectively, “Losses”) suffered or incurred by any Purchaser Indemnitee
arising from: (a) any material breach of any indemnity, covenant, representation or warranty of
Seller contained in this Agreement, (b) any misrepresentation in the certificate delivered at the
Closing pursuant to Section 8.2, (c) the Seller Plans, (d) all Income Taxes of the
Companies and Subsidiaries (including Income Taxes of any other Person for which the Companies or
Subsidiaries is liable under Treasury Regulation section 1.1502-6 or similar provision of foreign,
state or local law) for periods (or portions thereof) ending on or prior to the Closing Date to the
extent such Income Taxes exceed the Accrued Tax Liability; or (e) any Scheduled Claim, which claims
the parties acknowledge and agree that Seller has acknowledged

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its duty to defend in accordance with Section 11.6.2 and, thereby, Seller has a right
to control the defense of in accordance with the provisions of Section 11.6.2

               11.2.2. For all purposes of this Section 11, after the Closing, any Loss suffered or
incurred by the Companies or Subsidiaries arising from any breach of any indemnity, covenant,
representation or warranty by RMO referenced in Section 11.2.1 shall be deemed suffered and
incurred by Purchaser for purposes of such Section 11.2.1, and Purchaser shall be entitled
to seek indemnification under such Section 11.2.1 against RMO alone for any such Loss.

          11.3. Agreements to Indemnify the Seller Indemnitees

     Subject to the other provisions of this Section 11, Purchaser hereby agrees to
indemnify and hold harmless Seller, each Non-Company Affiliate, their respective directors and
officers, and their respective successors and assigns (collectively, the “Seller
Indemnitees”), from and against all Losses suffered or incurred by any Seller Indemnitee
arising from: (a) any material breach of any indemnity, covenant, representation, or warranty of
Purchaser contained in this Agreement, (b) any misrepresentation in the certificate delivered at
the Closing pursuant to Section 9.2, or (c) any Income Taxes incurred as a result of any
transaction engaged in by the Companies, Subsidiaries after the Closing.

          11.4. Recoveries

     The determination of the amount of any Loss for purposes of this Section 11 shall take
into account the amount of insurance proceeds payable with respect thereto pursuant to any Third
Party insurance policy, but only to the extent such amounts are actually paid to the Indemnified
Party.

          11.5. Survival

               11.5.1. All claims by a Purchaser Indemnitee for indemnification pursuant to this Section
11 resulting from breaches of representations or warranties herein shall be forever barred
unless Seller is notified:

                    11.5.1.1. in the case of a claim based upon a breach of Section 5.4 with respect to
any taxable period ending on or prior to the Closing Date, within the statutory period of
limitations (including any extensions thereof), unless such claim is raised by the taxing authority
by way of an offset against any claim or suit for refund by or on behalf of the Companies or
Subsidiaries, or pursuant to the mitigation provisions contained in the Code or any applicable
statutes, in which case a claim may be made within one (1) year after such offset or assessment; or

                    11.5.1.2. in all other cases within eighteen (18) months after the Closing Date;
provided that if written notice for a claim of indemnification has been given by
Purchaser pursuant to Section 11.6.1 on or prior to the last day of the foregoing 18-month
period, then the obligation of Seller to indemnify any Purchaser Indemnitee pursuant to this
Section 11 shall survive with respect to such claim until such claim is finally resolved;
provided, further, however, that claims based upon a breach of Section
5.2.1, Section 5.2.2, the first three sentences

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of Section 6.1, or Section 6.4 may be brought at any time within the statute
of limitations that applies to such claim or claims.

                    11.5.2. All claims by a Seller Indemnitee for indemnification pursuant to this Section
11 resulting from breaches of representations or warranties herein shall be forever barred
unless Purchaser is notified within eighteen (18) months after the Closing Date; provided
that if written notice for a claim of indemnification has been given by Seller on behalf of
any Seller Indemnitee pursuant to Section 11.6.1 on or prior to the last day of the
foregoing twelve (12) month period, then the obligation of Purchaser to indemnify any Seller
Indemnitee pursuant to this Section 11 shall survive with respect to such claim until such
claim is finally resolved; provided, further, however, that claims based
upon a breach of the first three sentences of Section 7.2 may be brought at any time within
the statute of limitations that applies to such claim or claims.

          11.6. Notice and Defense of Actions

     The obligations and liabilities of each Indemnifying Party hereunder shall be subject to the
following terms and conditions:

                       11.6.1. Notice. Except with respect to any Scheduled Claim, the Indemnified Party
shall give written notice to the Indemnifying Parties promptly after it becomes aware of any claim,
action or proceeding (each, an “Action”) as to which indemnity may be sought under this
Section 11; provided that in any event, the Indemnified Parties shall give
written notice of an Action within thirty (30) days after being served with the related process or
legal proceeding. Such notice shall state the nature and basis of such claims or events and the
amounts thereof, to the extent known, and shall attach copies of any complaint, demand or
arbitration notice received by the Indemnified Party. Such notice shall be given in accordance
with Section 13.1. The failure of the Indemnified Party to give notice as provided herein
shall relieve the Indemnifying Party of any obligation under this Section 11 only if and to
the extent that such failure materially prejudices the ability of the Indemnifying Party to defend
such Action, and such failure shall in no event relieve the Indemnifying Party of any liability
that the Indemnifying Party may have to the Indemnified Party otherwise under this Section
11.

                    11.6.2. Defense of Actions.

                       11.6.2.1. (a) Except with respect to any Scheduled Claim, in the event that the Indemnifying
Parties acknowledge in writing a duty to defend with respect to such Action, the Indemnifying
Parties shall have the right, at their expense, to control the defense of any such Action. If the
Indemnifying Parties wish to control the defense of such Action, they shall deliver written notice
thereof to the Indemnified Parties within sixty (60) days after receipt of the notice described in
Section 11.6.1. After such notice, the Indemnifying Parties shall engage independent
internal or external legal counsel (and reasonably acceptable to the Indemnified Parties) to assume
the defense of such Action; provided, however, that the Indemnified Party may also
participate in such defense, at its own expense; and provided, further,
that any Indemnifying Party shall not be entitled to assume the defense or control of any
Action if (i) the Indemnifying Party fails to acknowledge its duty to defend as set forth in the
preceding sentence, (ii) the Indemnified Party agrees, in writing, to assume the defense of such

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Action and forego any indemnity claimed under this Section 11, (iii) in the reasonable
opinion of legal counsel for the Indemnified Party, such Action involves the potential imposition
of a criminal liability on the Indemnified Party, its directors, officers, employees or agents,
(iv) in the reasonable opinion of legal counsel for the Indemnified Party, an actual or potential
conflict of interest exists where it is advisable for such Indemnified Party to be represented by
separate legal counsel, or (v) with respect to Purchaser only, failure to stay the enforcement of
such Action will result in the imminent risk of sale, forfeiture or loss of all or any material
portion of the Assets or a material disruption in the operation of the acquired business. In the
circumstances identified in the foregoing subsections 11.6.2(a)(i) through (v), the
Indemnified Party shall be entitled to control and assume responsibility for the defense of such
Action, at the cost and expense of the Indemnifying Party. The Indemnifying Party may, in any
event, participate in such proceedings at its own cost and expense.

                         (b) With respect to any Scheduled Claim, Seller shall have the right and obligation, at its
expense, to control the defense of such Scheduled Claim. Purchaser also may participate in such
defense, at its own expense. Seller shall have the right to select and engage internal or external
legal counsel (which shall be reasonably acceptable to Purchaser if selected and engaged after the
date of this Agreement) to assume the defense of such Scheduled Claim. From and after the
Effective Date, the cost of the defense of all Scheduled Claims and any claims that arise or are
filed between the Effective Date and the Closing Date shall be borne by the Purchaser provided,
however, the cost of the defense of any claims that arise after the date of this Agreement, but
before the Closing Date, shall be borne by Seller.

                    11.6.2.2. The Indemnifying Party, in the defense of any such Action, shall have the right in
its sole discretion to settle such Action only if (a) settlement involves only the payment of money
and execution of appropriate releases of the Indemnified Party and its Affiliates, as the case may
be, (b) there is no finding or admission of any violation of Law or violation of the rights of any
Person by the Indemnified Party or its Affiliates, as the case may be, and (c) the Indemnified
Party or its Affiliates, as the case may be, will have no liability with respect to such compromise
or settlement. Otherwise, no such Action shall be settled or agreed to without the prior written
consent of the Indemnified Party (which consent shall not be unreasonably withheld, delayed or
conditioned). If the Indemnified Party withholds, delays or conditions its consent in an
unreasonable manner, the Indemnified Party shall not be entitled to indemnification under this
Section 11 for any Loss in excess of the amount for which the Action could reasonably have
been compromised but for such withholding, delay or conditioning of consent.

                    11.6.2.3. Except with respect to any Scheduled Claim, in the event that the Indemnifying
Parties shall not agree in writing to assume the defense of such Action or in the event the
Indemnified Party assumes control of such Action pursuant to Section 11.6.2, the
Indemnified Parties may engage internal or external legal counsel acceptable to them to assume the
defense and may contest, pay, settle or compromise any such Action on such terms and conditions
reasonably acceptable to the Indemnified Parties. If the Indemnifying Parties are obligated to
indemnify the Indemnified Parties in respect to such Action under this Agreement, the fees and
expenses of such counsel retained by the Indemnified Parties shall constitute litigation expenses
subject to indemnification under this Section 11.

45

 

                    11.6.2.4. In the defense of any Action, regardless of who is in control, the Indemnified
Parties and the Indemnifying Parties shall fully cooperate in good faith in connection with such
defense and shall cause their legal counsel, accountants and Affiliates to do so, and shall make
available to the other party all relevant books, records, and information (in such Person’s
control) during normal business hours, and shall furnish to each other, at the Indemnifying Party’s
expense, such other assistance as the other party may reasonably require in connection with such
defense.

          11.7. Exclusive Remedy

     Except for remedies that cannot be waived as a matter of law and remedies available for
breaches under Section 13.2, the indemnification obligations under this Section 11
shall be the sole and exclusive remedies of the parties hereto with respect to any breach of any
representation, warranty, covenant, indemnity, or agreement under this Agreement or any certificate
delivered pursuant hereto by any party hereto, except that nothing contained herein shall be
construed as limiting or impairing the rights and remedies that the parties hereto may have at
equity for injunctive relief and specific performance, including such equitable remedies with
respect to enforcement of rights and obligations under Sections 2.1, 2.2, 3.4.2, 4.3, 4.4 and
4.5.

          11.8. Treatment

     All indemnification payments under this Agreement shall be treated as adjustments to the
Purchase Price.

12. TERMINATION

          12.1. Method of Termination

     This Agreement constitutes the binding and irrevocable agreement of the parties hereto to
consummate the transactions contemplated hereby subject to the terms and conditions contained
herein, the consideration for which is the covenants set forth in Sections 2, 3 and
4, and expenditures and obligations incurred and to be incurred by Purchaser, on the one
hand, and by Seller, the Companies, and Subsidiaries, on the other hand, in respect of this
Agreement, and this Agreement may be terminated or abandoned only as follows:

               12.1.1. By the unanimous written consent of Seller and Purchaser, notwithstanding prior
approval (if any) by the board of directors of either Purchaser or Seller;

               12.1.2. If any condition to the Closing under Sections 8 and 9 has not been
satisfied (or waived) by 5:00 p.m. on the one (1) year anniversary of the Effective Date or at such
other time and date as may be mutually agreed upon by the parties in writing, Seller may terminate
this Agreement by written notice given to Purchaser if Seller has neither (a) proximately
contributed to the occurrence of the failure to satisfy the conditions set forth in Sections
8 and 9 by such date, nor (b) failed to use its commercially reasonable efforts to
satisfy the conditions set forth in Sections 8 and 9;

46

 

               12.1.3. If any condition to the Closing under Sections 8 and 9 has not been
satisfied (or waived) by 5:00 p.m. on the one (1) year anniversary of the Effective Date or at such
other time and date as may be mutually agreed upon by the parties in writing, Purchaser may
terminate this Agreement by written notice given to Seller if Purchaser has neither (a) proximately
contributed to the occurrence of the failure to satisfy the conditions set forth in Sections
8 and 9 by such date, nor (b) failed to use its commercially reasonable efforts to
satisfy the conditions set forth in Sections 8 and 9; or

               12.1.4. By either Seller or Purchaser if (a) there shall be any Law that makes consummation of
the transactions contemplated herein illegal or otherwise prohibited; or (b) any judgment,
injunction, order or decree permanently enjoining any of the parties hereto from consummating the
transactions contemplated herein is entered and such judgment, injunction, order or decree shall
become final and non-appealable.

               12.1.5. By Seller at any time during the five (5) day period ending two (2) calendar days
before the Closing Date, if:

	 	(i)	 	the Average Closing Price is less than $9.49;
and
	 
	 	(ii)	 	(A) the number obtained by dividing the Average
Closing Price by $9.49 shall be less than (B) the number obtained by
dividing the Index Price on the Walkaway Determination Date by the
Index Price on the Starting Date and subtracting 0.20 from such
quotient.

     If Seller elects to exercise this termination right, he shall give written notice to be
received by Purchaser no later than one day following the Walkaway Determination Date; provided
that, such notice of termination may be withdrawn by Seller at any time prior to two calendar days
before the Closing Date. For five days after receipt of such a notice, Purchaser shall have the
irrevocable right to increase the number of shares of Purchaser’s common stock being issued to
Seller hereunder so that the Share Consideration Value is equal to the Purchase Price less the
Assumed Debt. If Purchaser makes this election, it shall give written notice to Seller of such
election and the revised number of Purchased Shares being issued hereunder. In such event, no
termination will occur pursuant to this Section 12.1.5, and this Agreement shall remain in
effect in accordance with its terms (except that the number of shares of Purchaser’s common stock
being issued to Seller hereunder shall have been so modified), and any reference in this Agreement
to the issuance of shares of Purchaser’s common stock to Seller shall be deemed to refer to the
share issuance after giving effect to the adjustment made pursuant to this Section.

     If Purchaser declares or affects a stock dividend, reclassification, recapitalization,
split-up, combination or similar transaction between the Starting Date and the Walkaway
Determination Date (or establishes a record date in respect thereof), the price of Purchaser’s
common stock shall be appropriately adjusted for the purposes of applying this Section.

     Notwithstanding anything in this Section 12.1 to the contrary, no party hereto that is
in breach of a material obligation under this Agreement shall be entitled to terminate this
Agreement except with the prior written consent of the other party hereto. In the event Seller

47

 

exercises its right to terminate this Agreement pursuant to this Section 12.1.5 then Seller
shall pay Purchaser One Hundred Thousand Dollars ($100,000) as consideration for such termination.

          12.2. Procedure and Effect of Termination

               12.2.1. In the event of a termination by any party pursuant to and in accordance with
Section 12.1, such terminating party shall give prompt written notice thereof as provided
therein to the other party, and the transactions contemplated hereby shall be abandoned and
terminated, without further action by any of the parties hereto, except as provided in Section
12.2.1.

               12.2.2. In the event of a termination pursuant to Section 12.1:

                    12.2.2.1. All filings, applications and other submissions relating to the consummation of
the transactions contemplated herein shall, to the extent practicable, be withdrawn from the
Governmental Authority or other Person to which made; and

                    12.2.2.2. No party hereto, or any of its Affiliates, nor any shareholder, member, partner,
director, officer, employee, or agent of any such party or any of its Affiliates, shall have any
liability or further obligation to any other party hereto or any of its Affiliates, nor to any
shareholder, member, partner, director, officer, employee, or agent of such other party or any of
its Affiliates pursuant to this Agreement, except (a) that the provisions of Sections
3.4.2, 12.2, 13.2, and 13.3  (and associated defined terms) shall
survive any such termination and not be extinguished thereby, provided that the
provisions of Section 3.4.2 shall terminate on the later of the second anniversary of such
termination or the date the Confidential Information loses its status as a trade secret or no
longer qualify as confidential under applicable Law; and (b) any party hereto nevertheless shall be
entitled to seek any remedy to which it may be entitled at law or in equity for the violation or
breach by the other party hereto of any agreement, covenant, indemnity, representation or warranty
contained in this Agreement that occurs prior to the termination.

13. GENERAL PROVISIONS

          13.1. Notices

     All notices, demands and requests hereunder by any party hereto to the other party hereto
shall be in writing, and shall be delivered by hand, nationally recognized overnight courier,
facsimile, or registered or certified mail, return receipt requested, first class postage prepaid,
addressed as follows:

13.1.1. If to Seller:

Richard M. Osborne

8500 Station St., Suite 113

Mentor, OH 44060

Facsimile No. (440) 255-8645

48

 

and copies to legal counsel to Purchaser:

Dworken & Bernstein Co., LPA

60 South Park Place

Painesville, OH 44077

Attn: Melvyn E. Resnick and Jodi Littman Tomaszewski

Facsimile No.: (440) 352-3469

13.1.2. If to Purchaser:

Energy West Incorporated

P.O. Box 2229

Great Falls, MT 59403

Attn: Kevin J. Degenstein, President and Chief Operating Officer

Facsimile No.: (406) 791-7560

and copies to legal counsel to Purchaser:

Kohrman, Jackson & Krantz., PLL

1375 E. Ninth Street

One Cleveland Center

Twentieth Floor

Cleveland, Ohio 44114

Attn: Marc Krantz

Facsimile No.: (216) 621-6536

and

McCarthy, Lebit, Crystal & Liffman Co., L.P.A.

101 West Prospect Avenue, Suite 1800

Cleveland, Ohio 44115-1088

Attn: Kenneth B. Liffman

Facsimile No. (216) 696-1210

               13.1.3. If delivered by hand or nationally recognized overnight courier, the day on which a
notice, demand or request is delivered shall be the date on which such delivery is made, if
delivered by facsimile, the day upon which sender receives from its facsimile machine the correct
answerback of the addressee and confirmation of uninterrupted transmission by a transmission report
or the recipient confirming by telephone to the sender that the recipient has received the
facsimile message shall be the date on which such delivery is made (provided a hard copy of such
transmission is dispatched by first class mail within 48 hours), and, if delivered by mail, the day
on which such notice, demand or request is received shall be the date of delivery; provided
that a notice given in accordance with this Section 13.1 but received on any day
other than a Business Day or after business hours in the place of receipt, will be deemed to be
received on the next Business Day in that place.

49

 

               13.1.4. Any party hereto may change its address or facsimile number specified for notices
herein by designating a new address or facsimile number for notices by notice to the other party in
accordance with this Section 13.1.

          13.2. Brokers

                    13.2.1. Purchaser represents and warrants to Seller that no investment banker, broker or
finder has acted for Purchaser in connection with this Agreement or the transactions. Purchaser
hereby agrees to indemnify and hold harmless Seller, the Companies, and Subsidiaries and their
respective Affiliates against any fee, loss or expense arising out of any claim by any investment
banker, broker or finder employed or alleged to have been employed by Purchaser or any of its
Affiliates in connection with this Agreement or the transactions contemplated herein.

                    13.2.2. Seller represents and warrants to Purchaser that no investment banker, broker or
finder has acted for Seller, the Companies, or Subsidiaries or any of their Affiliates in
connection with this Agreement or the transactions contemplated herein. Seller hereby agrees to
indemnify and hold harmless Purchaser, any Affiliate of Purchaser, and, after the Closing, the
Companies, and Subsidiaries against any fee, loss or expense arising out of any claim by any
investment banker, broker or finder employed or alleged to have been employed by Seller, the
Companies, Subsidiaries or any of their Affiliates in connection with this Agreement or the
transactions contemplated herein.

          13.3. Expenses

     All expenses incurred by a party hereto in connection with or related to the authorization,
preparation, negotiation and execution of this Agreement and the Closing of the transactions
contemplated hereby, including all fees and expenses of agents, representatives, legal counsel,
accountants and other technical consultants employed by such party, shall be borne solely and
entirely by the party that has incurred the same (except as otherwise expressly provided herein),
and provided that all expenses incurred by Seller shall be paid by Seller, as opposed to the
Companies or Subsidiaries.

          13.4. Further Assurances

     Each party covenants that at any time, and from time to time, after the Closing, it will
execute such additional instruments and take such actions as may be reasonably requested by the
other party to confirm or perfect or otherwise to carry out the intent and purposes of this
Agreement.

          13.5. Attribution of Knowledge

     With respect to any representation or warranty set forth in this Agreement or any other
agreements, certificates or instruments delivered pursuant hereto that is expressly qualified by:
(a) the phrase “to the knowledge of Seller” or “to the best knowledge of Seller” and variations
thereof when used with respect to Seller shall refer to matters actually known, and not
constructively known, to any of the individuals listed on Schedule 13.5(a); and (b) the
phrase “to the knowledge of Purchaser” or “to the best knowledge of Purchaser” and variations
thereof

50

 

when used with respect to Purchaser shall refer only to matters actually known, and not
constructively known, to any of the individuals listed on Schedule 13.5(b). Without
limiting the foregoing, a matter shall be deemed to be “actually known” by an individual listed on
Schedule 13.5 if such individual has received written notice of such matter.

          13.6. Waiver

     Any failure on the part of any party hereto to comply with any of its obligations, agreements
or conditions hereunder may be waived in writing by the other party to whom such compliance is
owed. No waiver of any provision of this Agreement shall be deemed, or shall constitute, a waiver
of any other provision, whether or not similar, nor shall any waiver constitute a continuing
waiver.

          13.7. Assignment; Binding Effect; No Third-Party Beneficiaries

     Neither this Agreement nor any of the rights, interests or obligations under this Agreement
may be assigned or delegated, in whole or in part, by operation of law or otherwise by any party
hereto without the prior written consent of the other party hereto, and any such assignment without
such prior written consent shall be null and void, except that Purchaser may assign this contract
to its parent company without Sellers’ consent, but in such case Purchaser shall provide Seller
with written notice of such assignment. Subject to the preceding sentence, this Agreement shall be
binding upon, inure to the benefit of, and be enforceable by, the parties hereto and their
respective successors and permitted assigns. No provision of this Agreement or any agreement
referenced herein shall create a third-party beneficiary relationship or otherwise confer any
benefit, entitlement or right upon any Person other than the parties to this Agreement or such
referenced agreement, as the case may be, except for Sections 11.2 and 11.3, which
are intended to benefit and be enforceable by any of the Purchaser Indemnitees or the Seller
Indemnitees, respectively.

          13.8. Headings

     The section and other headings in this Agreement are inserted solely as a matter of
convenience and for reference, and are not a part of this Agreement. References to any “Section”
herein (such as “Section 5”) shall be construed to include a reference to all subsections
thereunder (i.e., 5.1, 5.1.1, 5.1.2, ... 5.5, 5.6 ... etc).

          13.9. Entire Agreement

     This Agreement constitutes the entire agreement between the parties hereto with respect to the
subject matter herein and supersedes and cancels any prior agreements, representations, warranties,
or communications, whether oral or written, between the parties hereto relating to the transactions
contemplated hereby or the subject matter herein.

          13.10. Modifications

     Neither this Agreement nor any provision hereof may be modified, amended, changed, waived,
discharged or terminated orally, but only by an agreement in writing signed by the party

51

 

against whom or which the enforcement of such modification, amendment, change, waiver,
discharge or termination is sought.

          13.11. Governing Law

     This Agreement shall be governed by and construed in accordance with the laws of the State of
Ohio, without regards to the principles of conflicts of laws thereof.

          13.12. Severability

     The provisions of this Agreement shall be deemed severable and the invalidity or
unenforceability of any provision shall not affect the validity or enforceability of the other
provisions hereof. If any provision of this Agreement, or the application thereof to any Person or
any circumstance, is invalid or unenforceable, (a) a suitable and equitable provision shall be
substituted therefor in order to carry out, so far as may be valid and enforceable, the intent and
purpose of such invalid or unenforceable provision, and (b) the remainder of this Agreement and the
application of such provision to other Persons or circumstances shall not be affected by such
invalidity or unenforceability, nor shall such invalidity or unenforceability affect the validity
or enforceability of such provision, or the application thereof, in any other jurisdiction.

          13.13. Counterparts

     This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. Execution by
facsimile signature shall be deemed to be, and shall have the same effect as, execution by original
signature.

          13.14. Exhibits and Schedules Incorporated

     All Exhibits and Schedules attached hereto are incorporated herein by reference. The section
numbers in the Schedules correspond to the section numbers in this Agreement; provided, however,
that any information disclosed in the Schedules under any section number shall be deemed to be
disclosed and incorporated in any other section of this Agreement where such disclosure is made
with such specificity, or in such a context, that it is reasonably apparent that such disclosure is
applicable to such other section numbers. Prior to the Closing Date, Seller shall supplement or
amend the Schedules with respect to any matter relating to the subject matter thereof hereafter
arising which, if existing or occurring at the date of this Agreement, would have been required to
be set forth or described in the Schedules. No supplement or amendment of any Schedule made
pursuant to this Section 13.14 shall be deemed to cure any breach of, or expand or limit
the scope of, or otherwise modify or affect any representations or warranty made in this Agreement
unless the parties agree thereto in writing unless the omitted item is an obligation, liability or
other matter which occurred or was incurred by the Companies or the Subsidiaries in the Ordinary
Course of Business.

          13.15. Joint Preparation

     The parties have participated jointly in the negotiation and drafting of this Agreement. In
the event an ambiguity or question of intent or interpretation arises, this Agreement shall be

52

 

construed as if drafted jointly by the parties and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of
this Agreement.

          13.16. Performance by Affiliates

     Any obligation of any party hereto owed to any other party hereto under this Agreement, which
obligation is performed, satisfied or fulfilled by an Affiliate of such party, shall be deemed to
have been performed, satisfied or fulfilled by such party.

          13.17. Consent to Jurisdiction; Waivers of Trial by Jury 

     Each party irrevocably agrees that any legal action or proceeding arising out of or relating
to this Agreement or for recognition and enforcement of any judgment in respect hereof or thereof
brought by another party hereto or its successors or assigns may be brought and determined in the
United States District Court, Northern District of Ohio and each party hereby irrevocably submits
with regard to any action or proceeding for itself and in respect to its property, generally and
unconditionally, to the nonexclusive jurisdiction of the aforesaid courts. Each party hereto
hereby irrevocably waives, and agrees not to assert, by way of motion, as a defense, counterclaim
or otherwise, in any action or proceeding with respect to this Agreement, (a) any claim that it is
not personally subject to the jurisdiction of the above-named courts for any reason other than the
failure to lawfully serve process, (b) that it or its property is exempt or immune from
jurisdiction of any such court or from any legal process commenced in such courts (whether through
service of notice, attachment prior to judgment, attachment in aid of execution of judgment,
execution of judgment or otherwise), and (c) to the fullest extent permitted by applicable law,
that (i) the suit, action or proceeding in any such court is brought in an inconvenient forum, (ii)
the venue of such suit, action or proceeding is improper and (iii) this Agreement, or the subject
matter hereof or thereof, may not be enforced in or by such courts. Each party hereto further
agrees that service of any process, summons, notice or document by U.S. registered mail to such
party’s respective address set forth in Section 13 shall be effective service of process
for any action, suit or proceeding with respect to any matters to which it has submitted to
jurisdiction in this Section 13.17. EACH PARTY HERETO IRREVOCABLY AND UNCONDITIONALLY
WAIVES TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING RELATING TO A DISPUTE AND FOR ANY
COUNTERCLAIM WITH RESPECT THERETO.

          13.18. Shareholder Obligations 

     Each party irrevocably agrees that Howell, Rigo, Whelan and Smith shall have no liability
under this Agreement in regard to any breach of a representation or warranty or covenant. Where in
this Agreement provision is made for an action to be taken or not taken by Seller, RMO shall cause
Seller to take or not take such action, as the case may be.

[Signatures On The Following Page]

53

 

     IN WITNESS WHEREOF, each party hereto has caused this Stock Purchase Agreement to be executed
on its behalf, all as of the day and year first above written.

	 	 	 	 	 
	 	Seller:

 	 
	 	/s/ Richard M. Osborne, Trustee
 	 
	 	Richard M. Osborne, Trustee
 	 
	 	Dated: September 12, 2008 	 
	 
	 	 	 
	 	                                              /s/ Rebecca Howell
 	 
	 	Rebecca Howell 	 
	 	
Dated: September 12, 2008 	 
	 
	 	 	 
	 	                                              /s/ Stephen G. Rigo
 	 
	 	Stephen G. Rigo 	 
	 	
Dated: September 12, 2008 	 
	 
	 	 	 
	 	                                              /s/ Marty Whelan
 	 
	 	Marty Whelan 	 
	 	
Dated: September 12, 2008 	 
	 
	 	 	 
	 	                                              /s/ Thomas J. Smith
 	 
	 	Thomas J. Smith 	 
	 	
Dated: September 12, 2008 	 
	 
	 	Purchaser:

ENERGY WEST INCORPORATED

 	 
	 	By:  	/s/ James W. Garrett
 	 
	 	James W. Garrett, Vice President of Business 	 
	 	Development

Dated: September 12, 2008 	 
	 

54

 

EXHIBIT A

to

Stock Purchase Agreement

Form of Seller’s Closing Certificate

A-1

 

EXHIBIT B

to

Stock Purchase Agreement

Form of Purchaser’s Closing Certificate

B-1

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