Document:

Exhibit
10(p)

ASSET
PURCHASE AGREEMENT

THIS ASSET
PURCHASE AGREEMENT (“Agreement”) is made June 22, 2006, by and between National
Signal, Inc., a California corporation (“Purchaser”), and U.S. Traffic
Corporation, a Delaware corporation (“Seller”).

R E C I T A L S

A.                                   Seller
is engaged, among other things, in the manufacture and sale of portable,
changeable message signs, arrow boards, radar trailers and other miscellaneous
portable traffic-related signage (“PCMS”) and lighting products (“Lighting”)
(PCMS and Lighting collectively, the “Product Line”).

B.                                     Seller
desires to sell to Purchaser, and Purchaser desires to purchase from Seller,
certain of Seller’s assets used primarily in or related primarily to the
Product Line, on the terms contained in this Agreement.

A G R E E M E N T S

Therefore, for
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

1.                                       Agreement
to Purchase and Sell.  On the terms
contained in this Agreement, at the Closing (as herein defined) Purchaser shall
purchase from Seller, and Seller shall sell to Purchaser, all of Seller’s
right, title and interest in certain of Seller’s rights and assets used
exclusively in or held in connection with and/or relating primarily to the
Product Line (the “Purchased Assets”), free and clear of any liens, claims,
encumbrances or security interests (collectively, “Claims”), exclusive of the
Excluded Assets (as herein defined) and shall include the following assets of
Seller which are used primarily in or relate primarily to the Product Line:

(a)                                  The
inventory of packaging supplies, purchased parts, raw materials, work in
process and finished goods (“Inventory”), including without limitation, the
Inventory listed in Exhibit A hereto;

(b)                                 The
furniture, fixtures, equipment, tools, dies, jigs, patterns, molds and other
tangible personal property located at Seller’s facilities in Santa Fe Springs,
California, Salt Lake City, Utah or Tecate, Mexico (the “Equipment”), including
without limitation the items of Equipment listed on Exhibit B and the molds
listed on Exhibit B-1 hereto;

(c)                                  The
trademarks, trademark applications, trade names, service marks, patents, patent
applications and copyrights relating primarily to the Product Line, including, without
limitation, the names “Display Solutions,” “National Signal,” “Nu-Art,”
“Holcor,” and “Intermark” (the “Intellectual Property”) that are identified on
Exhibit C, all goodwill associated 

 

with the Intellectual
Property and other intangible property rights associated therewith and all
claims for past infringement thereof; all proprietary unpatented know-how and
methods utilized to produce the products of the Product Line, and all
engineering drawings, Gerber files, software and related source code that are
identified as Exhibit C;

(d)                                 The
contracts and agreements listed on Exhibit D hereto (the “Contracts”);

(e)                                  The
purchase orders listed on Exhibit E hereto, except any purchase orders that
require purchases of components that will not be used within one year in the
ordinary course of business (the “Purchase Orders”);

(f)                                    The
sales orders and sales contracts listed on Exhibit F hereto (the “Sales
Orders”);

(g)                                 The
customer lists, records and information, and all other books and records; and

(h)                                 The
claims and rights (and benefits arising therefrom) with or against all persons
whomsoever, including all rights against suppliers under warranties covering
any of the Inventory or Equipment.

2.                                       Excluded
Assets.  Seller shall retain the
following assets (the “Excluded Assets”), which shall not be Purchased Assets
under this Agreement:  (a) all assets of
Seller which are not specifically identified in Section 1 as being Purchased
Assets; (b) all accounts receivable resulting from sales of products of the
Product Line prior to Closing; (c) all accounts payable resulting from
operations of the Product Line prior to Closing; (d) the “U.S. Traffic” name
and mark; (e) Seller’s corporate name; (f) Seller’s documents relating to the
organization, maintenance and existence of Seller as a corporation, including
without limitation Seller’s corporate charter, by-laws, minute and stock
records, corporate seal; qualifications to conduct business as a foreign
corporation, arrangements with registered agents, taxpayer and other identification
numbers; (g) Seller’s insurance policies in effect on the Closing Date; and (h)
all cash, cash equivalents and investments.

3.                                       Liabilities.

(a)                                  On
the terms and subject to the conditions contained in this Agreement, at the
Closing, Purchaser assumes and agrees to discharge and perform when due all liabilities
of Seller under the Contracts, Purchase Orders and Sales Orders, to the extent
such liabilities relate to performance after the Closing Date and all product
warranty and return claims assumed by Purchaser pursuant to Section 9(f) (the
“Assumed Liabilities”).

(b)                                 Other
than as set forth in Section 3(a) above, Seller shall retain and Purchaser
shall not assume, and nothing contained in this Agreement shall be construed as
an assumption by Purchaser of any liabilities, obligations or undertakings of
Seller of any nature whatsoever, whether accrued, absolute, fixed or
contingent, known or unknown, due or to become due, unliquidated or
otherwise.  Seller shall be responsible
for all of the liabilities, obligations and undertakings of Seller which are
not Assumed Liabilities pursuant to Section 3(a) above, and such liabilities
shall remain the sole liabilities of Seller, and Purchaser does not

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assume and shall not be
responsible for, and shall not otherwise bear the economic burden of, any other
liabilities of Seller, including liabilities for accounts payable, accrued
expenses,  taxes, indebtedness for
borrowed money, or violations of or obligations under law (including
environmental matters) or otherwise (the “Excluded Liabilities”).  Seller agrees to discharge and perform in
full when due, all of the Excluded Liabilities.

4.                                       Purchase
Price.  The aggregate purchase price
of the Purchased Assets (the “Purchase Price”) is One Million Five Hundred Thousand
Dollars ($1,500,000).  The Purchase Price
shall be allocated among the Purchased Assets in the manner required by Section
1060 of the Internal Revenue Code of 1986, as amended, in accordance with
Exhibit G.  Purchaser shall pay the
Purchase Price by wire-transfer of immediately available funds to such bank
account as Seller shall specify by written notice delivered on or prior to the
Closing Date.

5.                                       Time
and Place of Closing.  The
transactions contemplated by this Agreement shall be consummated (the
“Closing”) at 10:00 a.m., prevailing business time, at the offices of Holland
& Knight LLP, 131 S. Dearborn Street, Chicago, Illinois 60603, and remotely
at such other offices and locations as may be suited by delivery by facsimile
or overnight courier, on the date hereof (the “Closing Date”).  The Closing shall be deemed to be effective
for all purposes as of the commencement of business on June 22, 2006.

At the Closing,
Seller shall deliver the Purchased Assets to Purchaser, Purchaser shall confirm
receipt of the Purchased Assets and Seller shall confirm receipt of the
Purchase Price.  At the Closing, the
Seller and the Purchaser shall execute and deliver:

(a)                                  
a Sublease of approximately 57,000 square feet of the Seller’s facilities at
9603 John Street, Santa Fe Springs, California in the form substantially
similar to Exhibit H (the “Santa Fe Springs Sublease”);

(b)                                 a
Sublease of approximately 2,000 square feet of the Seller’s facilities at 3612
West 2100 South Street, Salt Lake City, Utah in the form substantially similar
to Exhibit I (the “Salt Lake City Sublease,” and together with the Santa Fe
Springs Sublease, the “Subleases”)

(c)                                  a
Transition Services Agreement in the form substantially similar to Exhibit J
(the “Transition Services Agreement”).

6.                                       Purchaser’s
Representations and Warranties. 
Purchaser represents and warrants to Seller that:

(a)                                  Corporate.  Purchaser is a corporation duly organized,
validly existing and in good standing under the laws of California.

(b)                                 Power
and Authority.  Purchaser has full
corporate power and authority to enter into and perform (i) this Agreement,
(ii) the Sublease, and (iii) the Transition Services Agreement.  This Agreement, the Sublease and the
Transition Services Agreement have been duly executed and delivered by a duly
authorized officer or manager of Purchaser. 
Neither the execution and delivery of this Agreement, the Sublease, and
the Transition Services Agreement by Purchaser, nor the consummation by
Purchaser of the transactions contemplated hereby, will 

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conflict with or result
in a breach of any of the terms, conditions or provisions of Purchaser’s
Articles of Incorporation or by-laws, or of any statute or administrative
regulation, or of any order, writ, injunction, judgment or decree of any court
or governmental authority or of any arbitration award.

(c)                                  Consents.  No consent, authorization, order or approval
of, or filing or registration with, any governmental authority or other person,
organization or association is required for the execution and delivery by
Purchaser of this Agreement, the Sublease and the Transition Services Agreement,
and the consummation by Purchaser of the transactions contemplated by this
Agreement.

7.                                       Representations
and Warranties of Seller.  Seller
represents and warrants to Purchaser that:

(a)                                  Corporate.  Seller is a corporation duly organized,
existing and in good standing, under the laws of the State of Delaware.  Seller has all necessary corporate power and
authority and all authorizations, licenses, permits and certifications
necessary to manufacture and sell the Product Line in the manner in which the
Product Line is presently being manufactured and sold.  Seller has qualified as a foreign
corporation, and is in good standing, under the laws of the States of
California and Utah, and all other jurisdictions where the nature of the
Product Line or the nature or location of the assets of the Product Line
requires such qualification.

(b)                                 Power
and Authority.  Seller has full power and
authority to enter into and perform this Agreement, the Sublease and the
Transition Services Agreement.  This
Agreement, the Sublease and the Transition Services Agreement have been duly
executed and delivered by a duly authorized officer of Seller.  Neither the execution and delivery of this
Agreement, the Sublease and the Transition Services Agreement by Seller, nor
the consummation by Seller of the transactions contemplated hereby, will
conflict with or result in a breach of (i) any of the terms, conditions or
provisions of Seller’s Certificate of Incorporation or By laws, (ii) of any
statute or administrative regulation, or of any order, writ, injunction,
judgment or decree of any court or any governmental authority or of any
arbitration award, (iii) constitute a default under, result in the acceleration
of, create in any party the right to accelerate, terminate, modify or cancel,
or require any notice under any agreement, contract, lease, license, instrument
or other arrangement to which the Seller is a party or by which it is bound or
to which any of its assets is subject, or (iv) result in the imposition of any
security interest, lien, claim or other encumbrance upon any of the Purchased
Assets.

(c)                                  Consents.   Except with respect to Seller’s lender and
Seller’s landlord, no consent, authorization, order or approval of, or filing
or registration with, any governmental authority or other person, organization
or association is required for the execution and delivery by Seller of this
Agreement, the Sublease and the Transition Services Agreement and the
consummation by Seller of the transactions contemplated by this Agreement, the
Sublease and the Transition Services Agreement.

(d)                                 Equipment.  The Equipment constitutes all tangible
personal property necessary in order for Seller to manufacture products of the
Product Line in the manner in which 

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Seller has done so in the
past.  All Equipment is in reasonable
operating condition and repair (ordinary wear and tear excepted).

(e)                                  Title
to Assets.  Subject to the liens of
Seller’s lender which will be released at Closing, Seller has good and
marketable title to the Purchased Assets, free and clear of any Claims, and no
unreleased mortgage, trust deed, chattel mortgage, security agreement,
financing statement or other instrument encumbering any of the Purchased Assets
has been recorded, filed, executed or delivered.

(f)                                    Contracts.  The Contracts, Purchase Orders and Sales
Orders constitute all of the contracts and agreements between Seller and any
other party which relate to the manufacture or sale of the products of the
Product Line.  Except as set forth on
Schedule 7(f), the Contracts, Purchase Orders and Sales Orders are legal and in
full force and binding upon the parties thereto, and the Contracts, Purchase
Orders and Sales Orders will continue to be legal, binding and in full force
and effect on identical terms immediately after the Closing Date.  No default by Seller has occurred thereunder
and, to the best of Seller’s knowledge, no default by the other contracting
parties has occurred thereunder.  To
Seller’s knowledge, no event, occurrence or condition exists which, with the
lapse of time, the giving of notice, or both, or the happening of any further
event or condition, would become a default by Seller thereunder.  Complete and accurate copies of all
Contracts, Purchase Orders and Sales Orders have previously been delivered to
Purchaser.

(g)                                 Conflicts.
Subject to the liens of Seller’s lender which will be released at Closing and
receipt of Seller’s landlord’s consent, Seller is not a party to, or bound by,
any unexpired, undischarged or unsatisfied written or oral contract, agreement,
indenture, mortgage, debenture, note or other instrument under the terms of
which performance by Seller according to the terms of this Agreement will be a
default or an event of acceleration, or whereby timely performance by Seller
according to the terms of this Agreement may be prohibited, prevented or
delayed.

(h)                                 Tax
Matters.  Seller has filed all tax
returns that it was required to file and all such tax returns were correct and
complete in all material respects.  All
taxes owed by Seller have been paid. 
There are no liens or security interests on any of the assets of the
Seller that arose in connection with any failure to pay any tax.  The Seller has withheld and paid all taxes
that the Seller is required to withhold and pay in connection with amounts paid
or owing to any employee, independent contractor, creditor, or other third
party.

(i)                                     Intellectual
Property.  Seller owns or has the right
to use pursuant to license, sublicense agreement, or permission all
intellectual property necessary for the operation of the Product Line as
presently conducted, and Seller has taken all necessary action to maintain and
protect each item of intellectual property that it owns or uses in connection
with the Product Line.  To its knowledge,
Seller has not interfered with, infringed upon, misappropriated, or otherwise
come into conflict with any intellectual property rights of third parties, and
Seller has not received any charge, complaint, claim, demand, or notice
alleging any such interference, infringement, misappropriation, or violation
(including any claim that Seller must license or refrain from using any
intellectual property rights of any third party) that has not previously been
resolved.  To Seller’s knowledge, no
third party has interfered with, infringed upon, 

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misappropriated, or
otherwise come into conflict with any intellectual property rights of Seller
with respect to the Product Line.  To
Seller’s knowledge, none of the intellectual property will interfere with,
infringe upon, misappropriate, or otherwise come into conflict with, any
intellectual property rights of third parties as a result of the continued
operation of its Product Line as presently conducted.  Sellers owns or has the right to use pursuant
to license, sublicense, agreement or permission all Intellectual Property
identified on Exhibit C.  Except as set
forth on Schedule 7(i), each item of Intellectual Property owned or used by
Seller immediately prior to the Closing Date will be owned or available for use
by the Purchaser on identical terms and conditions immediately subsequent to
the Closing Date hereunder.

(j)                                     Product
Warranty.  No product of the Product Line
manufactured, sold, leased, or delivered by Seller is subject to any guaranty,
warranty, or other indemnity beyond the applicable standard terms and
conditions of sale or lease of Seller. 
Seller has made available to Purchaser copies of the standard terms and conditions
of sale or lease used by Seller (containing applicable guaranty, warranty, and
indemnity provisions) in the Product Line.

(k)                                  Product
Liability; Product Safety.  Except as set
forth on Schedule 7(k), Seller has not been notified, nor is it aware of any
liability arising out of any death or injury to individuals or damage to
property as a result of the ownership, possession, or use of any product
manufactured, sold, leased, or delivered, or any service provided, by Seller
with respect to the Product Line.  Seller
has not been required to file any notification or other report with or provide
information to any product safety agency, commission, board or other
governmental authority of any jurisdiction concerning actual or potential
hazards with respect to any product manufactured or sold by Seller with respect
to the Product Line.  To the best of
Seller’s knowledge, each product manufactured, distributed or sold by Seller in
the conduct of the Product Line complies in all material respects with all product
safety standards of each applicable product safety agency, commission, board or
other governmental authority.

(l)                                     Employee
Benefits.  Seller has provided Purchaser
with a description of each employee benefit plan that Seller maintains or to
which Seller contributes for the benefit of any current employee of Seller with
respect to the Product Line.  Seller has
no obligation to contribute to any multiemployer benefit plan.  Seller has complied with all HIPAA requirements.

(m)                               Environmental,
Health and Safety.  Seller has complied
with all environmental laws, and no action has been filed or commenced against
it alleging any violation of any environmental law.  Seller has obtained and is in compliance in
all material respects with all of the terms and conditions of all permits,
licenses, and other authorization which are required under, and has complied in
all material respects with all other limitations, restrictions, conditions,
standards, prohibitions, requirements, obligations, schedules, and timetables
which are contained in, all environmental laws. 
Seller has no environmental liabilities, and there are no conditions or
circumstances which might reasonably result in any environmental liabilities,
including any environmental liabilities with respect to:  (i) noncompliance with any applicable
environmental laws, or (ii) the presence or release or threatened release of
any hazardous materials, or (iii) personal injury, wrongful death, or other
tortious conduct relating specifically to any hazardous materials used,
manufactured, sold, or disposed of by or on behalf of seller.  Seller has complied in all materials
respects, and is currently in compliance in all material respects with, all
legal requirements relating to public health and safety, and worker health and

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safety (including,
without limitation, the Occupational Safety and Health Act).  Seller has provided Purchaser the opportunity
to review all documentary information in its possession or control regarding
environmental liabilities associated with the Product Line.  To Seller’s knowledge, the Santa Fe Springs
and the Salt Lake City facilities of Seller are currently, and at all times
during the Seller’s possession and/or operations at these facilities have been,
in compliance and in all material respects with all applicable environmental laws.

(n)                                 Suppliers.  The Seller currently is not in dispute with
any current or former supplier of merchandise relating to the Product Line.

(o)                                 Litigation.  Except as set forth at Schedule 7(o), no
action, suit, or proceeding is pending or, to the Seller’s knowledge,
threatened against the Seller before any court or quai-judicial or
administrative agency of any federal, state, local, or foreign jurisdiction
wherein an unfavorable injunction, judgment, order, decree, ruling, or charge
would (i) prevent consummation of any of the transactions contemplated by this
Agreement, (ii) cause any of the transactions contemplated by this Agreement to
be rescinded following consummation, or (iii) affect adversely the right of the
Purchaser to own the Purchased Assets. 
Except as set forth at Schedule 7(o), the Seller has no reason to
believe that any such action, suit, proceeding, hearing, or investigation may
be brought or threatened against the Seller.

(p)                                 Legal
Compliance.  The Seller has complied in
all material respects with all laws applicable to the Seller, and the Seller
has not received any notice of any violation of any applicable federal, state,
or local statute, law, or regulation (including, without limitation, any
applicable building, zoning, environmental protection, or other law, ordinance,
or regulation) affecting its properties or the operation of the Product
Line.  The Seller has, in full force and
effect, all licenses, permits and certificates, from federal, state, local and
foreign authorities (including, without limitation, federal and state agencies
regulating occupational health and safety) necessary to conduct the business of
the Seller and own and operate the Purchased Assets (collectively, the
“Permits”).  A true, correct and complete
list of all the Permits is set forth under Schedule 7(p), with an indication as
to whether the Permit is assignable to the Purchaser.  The Seller has conducted its business in
compliance with all term and conditions of the Permits.

(q)                                 Complete
Disclosure.  The representations and
warranties of Seller in this Agreement do not omit to state a material fact
necessary in order to make the representations, warranties or statements
contained herein not misleading.

Except for the
representations and warranties specifically set forth in this Section 7, Seller
makes no, and expressly disclaims all, express, implied or statutory warranties
of any kind whatsoever, including with respect to (a) any information furnished
by Seller or any of Seller’s other representatives or agents, (b) the physical
condition or value of any of the Purchased Assets or (c) the future
profitability or future earnings performance of the Product Line.  ALL IMPLIED OR STATUTORY WARRANTIES,
INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY EXCLUDED.

8.                                       Closing
Deliveries.  At the Closing, each
party shall deliver to the party entitled to the receipt thereof the documents
required to be delivered pursuant to Section 5 hereof and such 

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other documents,
instruments and materials as may be reasonably required to effectuate the
intent and provisions of this Agreement, and all such documents, instruments
and materials shall be satisfactory in form and substance to counsel for the
receiving party.  The conveyance,
transfer, assignment and delivery of the Purchased Assets shall be effected by
Seller’s execution and delivery to Purchaser of a bill of sale substantially in
the form attached hereto as Exhibit K (the “Bill of Sale”) and such other
instruments of conveyance, transfer, assignment and delivery as Purchaser may
reasonably request, and the assignment and assumption of the Assumed
Liabilities to Purchaser shall be effected by Seller’s and Purchaser’s
execution of an assignment and assumption agreement substantially in the form
attached hereto as Exhibit L (the “Assumption Agreement”).

9.                                       Post
Closing Agreements.  From and after
the Closing:

(a)                                  Employees.  On or before July 31, 2006, the Purchaser
will offer at-will employment to Seller’s employees identified on Exhibit M
(“Business Employees”) in positions and at compensation, with benefits, and
upon terms and conditions which are, in the aggregate, substantially similar to
the positions, compensation, benefits and terms and conditions of the Seller in
effect on the Closing Date. Until July 31, 2006, Seller will use its best
efforts to retain the Business Employees in positions and at compensation, with
benefits, and upon terms and conditions which are, in the aggregate,
substantially similar to the positions, compensation, benefits and terms and
conditions of the Seller in effect on the Closing Date. Prior to July 31, 2006,
the Seller will use the Business Employees to provide certain of the services
required of the Seller under the Transition Services Agreement.

(b)                                 Payments
of Receivables.  In the event Seller
shall receive any instrument of payment of any of Purchaser’s accounts
receivable, Seller shall forthwith deliver such instrument to Purchaser,
endorsed where necessary, without recourse, in favor of Purchaser.  In the event Purchaser shall receive any
instrument of payment of any of Seller’s accounts receivable, Purchaser shall
forthwith deliver such instrument to Seller, endorsed where necessary, without
recourse, in favor of Seller.

(c)                                  Sales
and Transfer Taxes and Fees.  Seller
shall pay when due all sales taxes and/or use taxes, recording fees, personal
property title application fees, patent and trademark assignment registration
fees and all other taxes and fees on the transfer of the Purchased Assets
arising by virtue of the sale of the Purchased Assets to Purchaser.

(d)                                 Inspection.  Seller, on the one hand, and Purchaser, on
the other hand, shall each retain and make their respective books and records
(including work papers in the possession of their respective accountants) with
respect to the Product Line available for inspection by the other party, or by
its duly authorized representatives, for reasonable business purposes at all
reasonable times during normal business hours, for a three (3) year period
following the Closing Date, with respect to all transactions relating to the
Product Line occurring prior to and those relating to the Closing, the
historical financial condition, assets, liabilities, results of operations and cash
flows of the Product Line.  As used in
this Section 9(d), the right of inspection includes the right to make extracts
or copies.  The representatives of a
party inspecting the records of the other party shall be reasonably
satisfactory to the other party.

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(e)                                  Unassigned
Assets.  Notwithstanding any provision to
the contrary contained herein, Seller shall not be obligated to assign to
Purchaser any Contract, Purchaser Order or Sales Order which provides that it
may not be assigned without the consent of the other party thereto and for
which such consent is not obtained, but in any such event, Seller shall, to the
extent reasonably necessary, cooperate with Purchaser in any reasonable
arrangement designed to provide the benefits thereof to Purchaser.  Without limiting the generality of any
provision elsewhere herein contained, the non-assignment of any of the
foregoing shall not, to the extent the liabilities thereunder would have been
Assumed Liabilities but for this paragraph (e), affect the status of such liabilities
as Assumed Liabilities, provided the full benefits of such Contract, Purchase
Order or Sales Order are obtained by Purchaser.

(f)                                    Product
Returns and Product Warranties.  During
the applicable warranty period for products shipped by Seller, (i) Purchaser
will be obligated to accept returns of products of the Product Line shipped by
Seller on and prior to the Closing Date, or which constitute finished goods or
partially finished goods inventory on the Closing Date, which are defective or
which fail to conform to the customer’s order in accordance with the customer’s
request, consistent with Seller’s past practices and in accordance with
applicable law; and (ii) Purchaser shall be obligated to honor any product
warranties which are in effect as of the Closing Date with respect to products
of the Product Line which were sold prior to the Closing Date.  Seller shall reimburse the Purchaser the
costs and expenses related to product warranty and return claims that exceed an
aggregate amount of $100,000 during such period.  Purchaser will advise Seller on a quarterly
basis of expenses and costs incurred by Purchaser with respect to product
returns and warranties, and estimates of costs and expenses related thereto.  Purchaser shall invoice the Seller on a quarterly
basis in arrears with respect to all costs and expenses that are
reimbursable.  Seller has provided
Purchaser with a written list of all such product returns and/or product
warranties, and an estimate of the costs and expenses related thereto, known or
to which Seller has reason to believe will be subject to product returns and
product warranties as of the Closing Date.

(g)                                 Non-Competition;
Non-Solicitation.  In consideration of
the benefits of this Agreement to Seller and in order to induce Purchaser to
enter into this Agreement, Seller hereby covenants and agrees that from and
after the Closing and until the fifth anniversary of the Closing Date, neither
Seller nor any of its affiliates (including, without limitation, Quixote
Corporation, and any present or future subsidiary of Quixote Corporation)
shall, directly, or indirectly, as a partner, stockholder, proprietor,
consultant, joint venturer, investor or in any other capacity:

(i)                                     Engage
in, or own, manage, operate, control, finance, or participate in the ownership,
management, operation, control, or financing of, any business or entity which
engages in the business of manufacturing products which are competitive with
the products of the Product Line;

(ii)                                  Hire
or solicit to perform services (as an employee, consultant or otherwise) any
Persons who are or, within the twelve (12) month period immediately preceding
Seller’s action were, employees of Purchaser or any of its affiliates or take
any actions which are intended to persuade any employee of Purchaser or any of
such affiliates to terminate his or her association with Purchaser or such
affiliates; provided, however, that general solicitations of 

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employment published in a journal, newspaper or other
publication of general circulation and not specifically directed towards such
employees shall not be deemed to constitute solicitation for purposes of this
subparagraph (ii); or

(iii)                               Solicit
any customer of Purchaser to purchase products or services which could be
supplied by Purchaser from the Product Line; provided however, notwithstanding
the provisions of this paragraph (g)(iii), Seller and its affiliates shall have
the right to continue to solicit for and sell products of the Product Line if
those products are components of an integrated system.

(h)                                 Confidentiality.  From and after the Closing, Seller and its
affiliates shall keep confidential and not disclose to any other person or
entity or use for their own benefit or the benefit of any other person or
entity, any information regarding the Product Line or Seller’s conduct of the
business or manufacturing and selling products of the Product Line.  The obligation of Seller under this paragraph
shall not apply to information which: 
(i) is or becomes generally available to the public without breach of
the commitment provided for in this paragraph; or (ii) is required to be
disclosed by law, order or regulation of a court or tribunal or government
authority; provided, however, that in any such case, Seller shall notify
Purchaser as early as reasonably practicable prior to disclosure to allow
Purchaser to take appropriate measures to preserve the confidentiality of such
information.

(i)                                     Injunctive
Relief.  Seller acknowledges that, given
the nature of the business of manufacturing and selling the products of the
Product Line, the covenants contained in this Section paragraphs (g) and (h)
contain reasonable limitations as to time, geographical area and scope of
activity to be restrained, and do not impose a greater restraint than is
necessary to protect and preserve for the benefit of Purchaser the goodwill of
Seller and to protect the legitimate business interests of Purchaser. If,
however, paragraphs (g) or (h) (or any portion thereof) is determined by any
court of competent jurisdiction to be unenforceable by reason of its extending
for too long a period of time or over too large a geographic area or by reason
of its being too extensive in any other respect or for any other reason it will
be interpreted to extend only over the longest period of time for which it may
be enforceable and/or over the largest geographical area as to which it may be
enforceable and/or to the maximum extent in all other aspects as to which it
may be enforceable, all as determined by such court and in such action.  Seller agrees that Purchaser’s remedies at
law for any breach or threat of breach by Seller or any of its affiliates of
the provisions of paragraph (h) or (i) will be inadequate, and that Purchaser
shall be entitled to an injunction or injunctions, without the necessity  for the posting of a bond or other collateral
security, to prevent breaches of the provisions of paragraphs (g) and (h) and
to enforce specifically the terms and provisions thereof.

(j)                                     Further
Assurances.  The parties shall execute
such further documents, and perform such further acts, as may be necessary to
transfer and convey the Purchased Assets to Purchaser, on the terms herein
contained, and to otherwise comply with the terms of this Agreement and to
consummate the transaction contemplated hereby.

(k)                                  Notwithstanding
the provisions of paragraph (g), for a period of twelve months from the Closing
Date, (i) Seller and its affiliates may continue to market and sell products of
the Product Line outside of North America; (ii) Seller or its affiliates will
offer to 

 10
 

 

buy such products from Purchaser, which Purchaser may
or may not have to accept; and (iii) if Purchaser accepts such order, Purchaser
will pay Seller or its affiliates a 5% commission on such purchase order.

10.                                 Indemnification
Obligations of Seller.  From and after
the Closing for eighteen (18) months with respect to matters identified in (a)
below and forever with respect to matters identified in (b), (c) and (d) below,
Seller shall defend, indemnify, save and keep harmless Purchaser and its
officers, directors, shareholders, lenders, successors and permitted assigns
against and from all Damages (as herein defined) sustained or incurred by any
of them resulting from or arising out of or by virtue of:

(a)                                  any
inaccuracy in or breach of any representation and warranty made by Seller in
this Agreement;

(b)                                 any
breach by Seller of, or failure by Seller to comply with, any of its covenants
or obligations under this Agreement;

(c)                                  the
failure to discharge when due any liability or obligation of Seller other than
the Assumed Liabilities, or any claim against Purchaser with respect to any
such liability or obligation or alleged liability or obligation, including,
without limitation, liability on account of taxes payable by Seller, or for
which Seller is liable, either by operation of law or pursuant to the
provisions of this Agreement;

(d)                                 any
claims by parties other than Purchaser to the extent caused by acts or
omissions of Seller on or prior to the Closing Date.

As used in this
Agreement, the term “Damages” shall mean all liabilities, demands, claims,
actions or causes of action, regulatory, legislative or judicial proceedings or
investigations, assessments, levies, losses, fines, penalties, damages, costs
and expenses, including reasonable attorneys’, accountants’, investigators’,
and experts’ fees and expenses, sustained or incurred in connection with the
defense or investigation of any claim.

11.                                 Indemnification
Obligations of Purchaser.  From and after
the Closing for eighteen (18) months with respect to matters identified in
paragraph (a) below and forever with respect to matters identified in
paragraphs (b), (c) and (d) below, Purchaser shall defend, indemnify, save and
keep harmless Seller from all Damages sustained or incurred by Seller or Shareholder
resulting from or arising out of or by virtue of:

(a)                                  any
inaccuracy in or breach of any representation and warranty made by Purchaser in
this Agreement;

(b)                                 any
breach by Purchaser of, or failure by Purchaser to comply with, any of its
covenants or obligations under this Agreement;

(c)                                  any
failure of Purchaser to pay and/or discharge any of the Assumed Liabilities;
and

 11
 

 

(d)                                 any
claims by parties other than Seller to the extent caused by acts or omissions
of Purchaser after the Closing Date, (provided such acts or omissions do not
arise as a result of Seller’s actions at or prior to the Closing), including
claims for Damages which arise or arose out of Purchaser’s manufacture and sale
of products of the Product Line after the Closing.

12.                                 Miscellaneous.

(a)                                  Publicity.  Except as otherwise required by law, press
releases concerning this transaction shall be made only with the prior
agreement of Seller and Purchaser.

(b)                                 Notices.  All notices required or permitted to be given
hereunder shall be in writing and may be delivered by hand, by facsimile, by
nationally recognized private courier, or by United States mail.  Notices delivered by mail shall be deemed
given three (3) business days after being deposited in the United States mail,
postage prepaid, registered or certified mail. 
Notices delivered by hand, by facsimile, or by nationally recognized
private carrier shall be deemed given on the first business day following
receipt; provided, however, that a notice delivered by facsimile shall only be
effective if such notice is also delivered by hand, or deposited in the United
States mail, postage prepaid, registered or certified mail, on or before two
(2) business days following its delivery by facsimile.  All notices shall be addressed as
follows:  (1) if to Seller, addressed to
Seller c/o Quixote Corporation, 35 E. Wacker Drive, Chicago, Illinois 60601,
Attention:  Daniel P. Gorey, facsimile
(312) 476-1356, with a copy to Holland & Knight, LLP, 131 S. Dearborn,
Chicago, Illinois 60603, Attention:  Anne
Hamblin Schiave, facsimile (312) 578-6666; (2) if to Purchaser, National
Signal, Inc., 9601 John Street, Santa Fe Springs, California 90670,
Attention:  Mark Fernandez, with a copy
to Rutan & Tucker, 611 Anton Boulevard, Suite 1400, Costa Mesa, CA 92626, Attn:
Vicki Dallas, facsimile 714-546-9035 or (3) to such other respective addresses
and/or addressees as may be designated by notice given in accordance with the
provisions of this Section 12(b).

(c)                                  Fees
and Expenses.  Each party hereto shall
bear all fees and expenses incurred by such party in connection with, relating
to or arising out of the execution, delivery and performance of this Agreement
and the consummation of the transaction contemplated hereby, including
attorneys’, accountants’, brokers’ and other professional fees and expenses.

(d)                                 Entire
Agreement.  This Agreement, and the
exhibits hereto, the Sublease, and the Transition Services Agreement constitute
the entire agreement between the parties and shall be binding upon and inure to
the benefit of the parties hereto and their respective legal representatives,
successors and permitted assigns.

(e)                                  Survival;
Non-Waiver.  All representations and
warranties shall survive the Closing 
(and none shall merge into any instrument of conveyance) regardless of
any investigation or lack of investigation by any of the parties hereto.  The failure in any one or more instances of a
party to insist upon performance of any of the terms, covenants or conditions
of this Agreement, to exercise any right or privilege in this Agreement
conferred, or the waiver by said party of any breach of any of the terms,
covenants or conditions of this Agreement, shall not be construed as a
subsequent waiver of any such terms, covenants, conditions, right or
privileges, but the same shall continue and remain in full force and effect as
if no such forbearance or 

 12
 

 

waiver had occurred. 
No waiver shall be effective unless it is in writing and signed by an
authorized representative of the waiving party.

(f)                                    Applicable
Law.  This Agreement shall be governed
and controlled as to validity, enforcement, interpretation, construction,
effect and in all other respects by the internal laws of the State of
California applicable to contracts made in that State, without regard to any
conflict of law principles of the State of California.

(g)                                 Consent
to Jurisdiction.  This Agreement has been
executed and delivered in and shall be deemed to have been made in
California.  Each of the parties agrees
to the exclusive jurisdiction of any state or Federal court within Los Angeles,
California, with respect to any claim or cause of action arising under or
relating to this Agreement, and waives personal service of any and all process
upon it, and consents that all services of process be made by registered or certified
mail or delivered by hand, directed to it as provided in the following
sentence, and service so made shall be deemed to be completed when
received.  Process to be served upon
Seller shall be mailed or delivered c/o Anne Hamblin Schiave, Holland &
Knight, LLP, 131 S. Dearborn Street, Chicago, Illinois 60603.  Process to be served upon Purchaser shall be
mailed or delivered to Vicki Dallas, Rutan & Tucker, 611 Anton Boulevard,
Suite 1400, Costa Mesa, CA 92626.  Each
of the parties waives any objection based on forum non conveniens and waives
any objection to venue of any action instituted hereunder.  Nothing in this paragraph shall affect the
right to serve legal process in any other manner permitted by applicable law.

(h)                                 Waiver
of Trial by Jury.  Each of the parties
waives the right to a jury trial in connection with any suit, action or
proceeding seeking enforcement of such party’s rights under this Agreement.

(i)                                     Binding
Effect.  This Agreement shall inure to
the benefit of and be binding upon the parties hereto, and their successors and
permitted assigns.  Nothing in this
Agreement, express or implied, is intended to confer on any person other than
the parties hereto, and their respective successors and permitted assigns any
rights, remedies, obligations or liabilities under or by reason of this
Agreement.

(j)                                     Assignment.  This Agreement shall not be assignable by
either party without the prior written consent of the other party.  Notwithstanding the foregoing, Purchaser may
assign this Agreement to any of its affiliates, or to a purchaser of
substantially all of its assets.  Any
permitted assignee will be obligated to assume the obligations of the assignor,
and the assignor shall remain liable performance of all obligations of the
assignee.

(k)                                  Amendments.  This Agreement shall not be modified or
amended except pursuant to an instrument in writing executed and delivered on
behalf of each of the parties hereto.

(l)                                     Headings.  The headings contained in this Agreement are
for convenience of reference only and shall not affect the meaning or
interpretation of this Agreement.

(m)                               Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any 

 13
 

 

provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, and this Agreement shall be
reformed, construed and enforced in such jurisdiction so as to best give effect
to the intent of the parties under this Agreement.

(n)                                 Counterparts.  Counterpart copies of this Agreement may be
signed by all Parties and signature pages exchanged by facsimile or email.  The Parties intend and agree that counterpart
copies signed and exchanged as provided in the preceding sentence shall be
fully binding.  Counterpart originals of
this Agreement shall be exchanged by U.S. mail or express service at the
earliest reasonable time following the exchange of signature pages by facsimile
or email, each of which shall be an original and all of which together shall
constitute the one and same instrument.

(o)                                 No
Strict Construction.  The parties hereto jointly
participated in the negotiation and drafting of this Agreement.  The language used in this Agreement shall be
deemed to be the language chosen by the parties hereto to express their
collective mutual intent, this Agreement shall be construed as if drafted
jointly by the parties hereto, and no rule of strict construction shall be
applied against any person or entity.

(p)                                 Gender.  As used in this Agreement, the masculine,
feminine or neuter gender shall be deemed to include the others whenever the
context so indicates or requires.

(q)                                 Interpretation.  Whenever the term “include” or “including” is
used in this Agreement, it shall mean “including, without limitation,” (whether
or not such language is specifically set forth) and shall not be deemed to limit
the range of possibilities to those items specifically enumerated.  The words “hereof”, “herein” and “hereunder”
and words of similar import refer to this Agreement as a whole and not to any
particular provision. Terms defined in the singular have a comparable meaning
when used in the plural and vice versa.

(r)                                    The
parties  hereby waive compliance with the
California Bulk Sales law.  Purchaser
will pay all of the Assumed Liabilities and Seller will pay the Excluded
Liabilities.

 14
 

 

IN WITNESS WHEREOF, the parties have executed this
Asset Purchase Agreement on the date first above written.

	
  

  	
  U.S. TRAFFIC CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Daniel P. Gorey

  	
   

  
	
   

  	
   

  
	
   

  	
  Its: Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NATIONAL SIGNAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  :     /s/ Mark Fernandez

  	
   

  
	
   

  	
   

  	
  President

  
						

 

 15Exhibit 10(q)

EXECUTION COPY

 

ASSET
PURCHASE AGREEMENT

between

DATA
TRANSMISSION NETWORK CORPORATION

and

SURFACE
SYSTEMS, INC.

 

Dated as of June
30, 2006

 

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE I

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONSTRUCTION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 1.01.

  	
   

  	
  Construction and Interpretation

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE II

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TRANSFER OF
  ASSETS AND RIGHTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01.

  	
   

  	
  Purchase and Sale of Assets

  	
   

  	
  1

  
	
  Section 2.02.

  	
   

  	
  Excluded Assets

  	
   

  	
  3

  
	
  Section 2.03.

  	
   

  	
  Assumed Forward Looking Obligations; Excluded
  Liabilities

  	
   

  	
  4

  
	
  Section 2.04.

  	
   

  	
  Purchase Price

  	
   

  	
  4

  
	
  Section 2.05.

  	
   

  	
  Closing

  	
   

  	
  4

  
	
  Section 2.06.

  	
   

  	
  Payment of Purchase Price

  	
   

  	
  4

  
	
  Section 2.07.

  	
   

  	
  Purchase Price Adjustment

  	
   

  	
  5

  
	
  Section 2.08.

  	
   

  	
  Allocation of Purchase Price

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE III

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES OF SELLER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01.

  	
   

  	
  Organization

  	
   

  	
  6

  
	
  Section 3.02.

  	
   

  	
  Authorization

  	
   

  	
  6

  
	
  Section 3.03.

  	
   

  	
  Noncontravention

  	
   

  	
  7

  
	
  Section 3.04.

  	
   

  	
  Litigation

  	
   

  	
  7

  
	
  Section 3.05.

  	
   

  	
  Assumed Agreements

  	
   

  	
  7

  
	
  Section 3.06.

  	
   

  	
  Customers

  	
   

  	
  8

  
	
  Section 3.07.

  	
   

  	
  Hardware and Other Equipment

  	
   

  	
  9

  
	
  Section 3.08.

  	
   

  	
  Software, Licenses and Data Bases

  	
   

  	
  9

  
	
  Section 3.09.

  	
   

  	
  Intellectual Property

  	
   

  	
  10

  
	
  Section 3.10.

  	
   

  	
  Supplies

  	
   

  	
  11

  
	
  Section 3.11.

  	
   

  	
  St. Louis Facility

  	
   

  	
  11

  
	
  Section 3.12.

  	
   

  	
  Compliance With Laws

  	
   

  	
  11

  
	
  Section 3.13.

  	
   

  	
  Tax Matters

  	
   

  	
  11

  
	
  Section 3.14.

  	
   

  	
  Financial Statements

  	
   

  	
  11

  
	
  Section 3.15.

  	
   

  	
  Absence of Specified Changes

  	
   

  	
  12

  
	
  Section 3.16.

  	
   

  	
  Title

  	
   

  	
  13

  
	
  Section 3.17.

  	
   

  	
  Licenses and Permits

  	
   

  	
  13

  
	
  Section 3.18.

  	
   

  	
  Consents and Approvals

  	
   

  	
  14

  
	
  Section 3.19.

  	
   

  	
  Broker or Finders’ Fees

  	
   

  	
  14

  
	
  Section 3.20.

  	
   

  	
  Employees; Compensation; Labor

  	
   

  	
  14

  
	
  Section 3.21.

  	
   

  	
  Employee Benefit Plans

  	
   

  	
  15

  

 

 

	
  Section 3.22.

  	
   

  	
  Insurance

  	
   

  	
  15

  
	
  Section 3.23.

  	
   

  	
  Fair Value

  	
   

  	
  15

  
	
  Section 3.24.

  	
   

  	
  Solvency

  	
   

  	
  15

  
	
  Section 3.25.

  	
   

  	
  Disclosure

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IV

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REPRESENTATIONS
  AND WARRANTIES OF BUYER

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01.

  	
   

  	
  Organization

  	
   

  	
  17

  
	
  Section 4.02.

  	
   

  	
  Authorization

  	
   

  	
  17

  
	
  Section 4.03.

  	
   

  	
  Noncontravention

  	
   

  	
  17

  
	
  Section 4.04.

  	
   

  	
  Litigation

  	
   

  	
  17

  
	
  Section 4.05.

  	
   

  	
  Broker or Finders’ Fees

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE V

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ADDITIONAL
  AGREEMENTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01.

  	
   

  	
  Conduct of Business

  	
   

  	
  17

  
	
  Section 5.02.

  	
   

  	
  Employee Leasing Agreement

  	
   

  	
  18

  
	
  Section 5.03.

  	
   

  	
  Product Marketing Agreement

  	
   

  	
  18

  
	
  Section 5.04.

  	
   

  	
  Subcontract

  	
   

  	
  18

  
	
  Section 5.05.

  	
   

  	
  Public Announcements

  	
   

  	
  18

  
	
  Section 5.06.

  	
   

  	
  No Solicitation

  	
   

  	
  19

  
	
  Section 5.07.

  	
   

  	
  Representations and Warranties

  	
   

  	
  19

  
	
  Section 5.08.

  	
   

  	
  Disclosure Schedules

  	
   

  	
  19

  
	
  Section 5.09.

  	
   

  	
  Due Diligence

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VI

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  POST-CLOSING
  COVENANTS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01.

  	
   

  	
  Further Action

  	
   

  	
  20

  
	
  Section 6.02.

  	
   

  	
  Consents and Authorizations

  	
   

  	
  20

  
	
  Section 6.03.

  	
   

  	
  Litigation Support

  	
   

  	
  20

  
	
  Section 6.04.

  	
   

  	
  Transition

  	
   

  	
  21

  
	
  Section 6.05.

  	
   

  	
  Confidentiality

  	
   

  	
  20

  
	
  Section 6.06.

  	
   

  	
  Noncompetition/Nonsolicitation Agreement

  	
   

  	
  22

  
	
  Section 6.07.

  	
   

  	
  Access to Records After the Closing

  	
   

  	
  22

  
	
  Section 6.08.

  	
   

  	
  RWIS Data Access

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CONDITIONS TO
  CLOSING

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.01.

  	
   

  	
  Conditions to Obligation of Buyer

  	
   

  	
  23

  

 

 ii
 

 

	
  Section 7.02.

  	
   

  	
  Conditions to Obligation of Seller

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE VIII

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SURVIVAL AND
  INDEMNIFICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 8.01.

  	
   

  	
  Survival

  	
   

  	
  26

  
	
  Section 8.02.

  	
   

  	
  Indemnification

  	
   

  	
  27

  
	
  Section 8.03.

  	
   

  	
  Time Limitation on Indemnification

  	
   

  	
  28

  
	
  Section 8.04.

  	
   

  	
  Third Party Claims, Etc

  	
   

  	
  28

  
	
  Section 8.05.

  	
   

  	
  Certain Other Indemnity Matters

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE IX

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TERMINATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 9.01.

  	
   

  	
  Termination Events

  	
   

  	
  29

  
	
  Section 9.02.

  	
   

  	
  Effect of Termination

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE X

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MISCELLANEOUS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 10.01.

  	
   

  	
  Notices

  	
   

  	
  30

  
	
  Section 10.02.

  	
   

  	
  Amendments and Waivers

  	
   

  	
  31

  
	
  Section 10.03.

  	
   

  	
  Expenses

  	
   

  	
  31

  
	
  Section 10.04.

  	
   

  	
  Successors and Assigns; Assignment

  	
   

  	
  31

  
	
  Section 10.05.

  	
   

  	
  Governing Law

  	
   

  	
  31

  
	
  Section 10.06.

  	
   

  	
  Counterparts; Effectiveness

  	
   

  	
  31

  
	
  Section 10.07.

  	
   

  	
  Entire Agreement; Third Party Beneficiaries

  	
   

  	
  32

  
	
  Section 10.08.

  	
   

  	
  Severability

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ARTICLE XI

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEFINITIONS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 11.01.

  	
   

  	
  Definitions

  	
   

  	
  32

  

 

 iii
 

 

	
  Exhibit
  A:

  	
   

  	
  Employee Leasing Agreement

  	
   

  	
   

  
	
  Exhibit B:

  	
   

  	
  Product Marketing Agreement

  	
   

  	
   

  
	
  Exhibit C:

  	
   

  	
  Form of Subcontract

  	
   

  	
   

  
	
  Exhibit D:

  	
   

  	
  Opinion of Seller’s Counsel

  	
   

  	
   

  
	
  Exhibit E:

  	
   

  	
  Bill of Sale, Assignment and Assumption Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Schedule 2.01(a):

  	
   

  	
  Customer Contracts and Customers

  	
   

  	
   

  
	
  Schedule 2.01(b):

  	
   

  	
  Software and Licenses

  	
   

  	
   

  
	
  Schedule 2.01(c):

  	
   

  	
  Data Bases

  	
   

  	
   

  
	
  Schedule 2.01(d):

  	
   

  	
  IP Rights

  	
   

  	
   

  
	
  Schedule 2.01(e):

  	
   

  	
  Hardware

  	
   

  	
   

  
	
  Schedule 2.01(f):

  	
   

  	
  Other Equipment

  	
   

  	
   

  
	
  Schedule 2.01(g):

  	
   

  	
  Supplies

  	
   

  	
   

  
	
  Schedule 2.01(h):

  	
   

  	
  Other Agreements

  	
   

  	
   

  
	
  Schedule 2.02(c):

  	
   

  	
  Storm Beacon Customers

  	
   

  	
   

  
	
  Schedule 2.02(d):

  	
   

  	
  Excluded Hardware

  	
   

  	
   

  
	
  Schedule 2.02(h):

  	
   

  	
  Unrelated Assets

  	
   

  	
   

  
	
  Schedule 2.07:

  	
   

  	
  Customers Contracts Requiring Consent

  	
   

  	
   

  
	
  Schedule 3.04:

  	
   

  	
  Litigation

  	
   

  	
   

  
	
  Schedule 3.06(b):

  	
   

  	
  Customer Disputes

  	
   

  	
   

  
	
  Schedule 3.06(c):

  	
   

  	
  Customer Bankruptcies

  	
   

  	
   

  
	
  Schedule 3.09:

  	
   

  	
  Non-Exclusive IP Rights

  	
   

  	
   

  
	
  Schedule 3.13:

  	
   

  	
  Tax Matters

  	
   

  	
   

  
	
  Schedule 3.14:

  	
   

  	
  Financial Statements

  	
   

  	
   

  
	
  Schedule 3.15:

  	
   

  	
  Absence of Specified Changes

  	
   

  	
   

  
	
  Schedule 3.16(a):

  	
   

  	
  Title

  	
   

  	
   

  
	
  Schedule 3.17:

  	
   

  	
  Licenses and Permits

  	
   

  	
   

  
	
  Schedule 3.18:

  	
   

  	
  Consents and Approvals

  	
   

  	
   

  
	
  Schedule 3.20:

  	
   

  	
  Employment Matters

  	
   

  	
   

  
	
  Schedule 3.21:

  	
   

  	
  Employee Benefit Plans

  	
   

  	
   

  
	
  Schedule 3.22:

  	
   

  	
  Insurance

  	
   

  	
   

  
	
  Schedule 5.04:

  	
   

  	
  Subcontract Customers

  	
   

  	
   

  

 

 iv

ASSET
PURCHASE AGREEMENT

This ASSET PURCHASE AGREEMENT
(this “Agreement”) is made and entered into this        
day of June, 2006 by and between DATA TRANSMISSION NETWORK
CORPORATION, a Delaware corporation (“Buyer”), and SURFACE SYSTEMS, INC., a Missouri corporation (“Seller”).  Buyer and Seller are jointly referred to
herein as the “Parties.”

W I T N E S S E T
H :

WHEREAS, Seller is engaged in the business of selling
information, software and other products related to the weather forecasting
business and providing services related thereto (the “Business”); and

WHEREAS, Buyer desires to purchase substantially all
of Seller’s assets associated with the Business, and Seller desires to sell
such assets to Buyer.

NOW, THEREFORE, in consideration of the promises and
the mutual representations, promises and covenants herein contained and for
other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the Parties hereto agree as follows:

ARTICLE
I

CONSTRUCTION

Section
1.01.  Construction and Interpretation.  All capitalized words or terms herein have
the meaning ascribed to them as immediately thereafter defined or as defined in
Article XI hereof.  The captions or
headings in this Agreement are for convenience of reference only and in no way
define, limit or describe the scope or intent of any provisions or Sections of
this Agreement.  All references in this
Agreement to particular Articles or Sections are references to the Articles or
Sections of this Agreement, unless some other references are clearly
indicated.  All accounting terms not
specifically defined in this Agreement shall be construed in accordance with
United States generally accepted accounting principles as in effect on the date
hereof.  In this Agreement, unless the
context otherwise requires, (a) words describing the singular number shall
include the plural and vice versa, (b) words denoting any gender shall
include all genders and (c) the word “including” shall mean “including,
without limitation.”  This Agreement and
the other instruments and documents to be delivered pursuant hereto shall not
be construed more favorably against one Party than the other based on who
drafted the same, it being acknowledged that all Parties hereto contributed
meaningfully to the drafting of this Agreement.

ARTICLE
II

TRANSFER OF ASSETS AND RIGHTS

Section
2.01.  Purchase and Sale of Assets.  Subject to the terms and conditions of this
Agreement, Seller agrees to sell, convey, assign, transfer and deliver to Buyer
as of the Effective Time, free and clear of any and all liabilities, claims,
liens, restrictions on transfer and 

 

encumbrances (except for the Forward Looking
Obligations and Permitted Liens, if any), and Buyer agrees to purchase from
Seller, all of the assets listed below, whether tangible, intangible, real,
personal or mixed, and wherever located, all of which are sometimes
collectively referred to in this Agreement as the “Purchased Assets”:

(a)           All rights of Seller in and to the
customer agreements identified on Schedule 2.01(a) (the “Customer
Contracts”), all rights of Seller to provide products and services to the
customers who are parties to such agreements or customers who otherwise receive
products and services related to the Business from Seller, each of whom is also
identified on Schedule 2.01(a) (the “Customers”) and all rights to provide
products and services to the prospective customers to whom proposals have been
presented by Seller as of the Effective Time (the “Proposals”), a list of which
shall be provided by Seller to Buyer as soon as reasonably practicable
following the Closing;

(b)           All computer software systems and
computer software licenses used and/or held by Seller in connection with or
otherwise related to the Business, including but not limited to those
identified on Schedule 2.01(b) (the “Software and Licenses”);

(c)           All data bases, including those
storing weather graphics and related content, used in connection with or
otherwise related to the Business, including but not limited to those identified
on Schedule 2.01(c) (the “Data Bases”);

(d)           All intellectual property rights
(e.g., trade names, trademarks, service marks, copyrights, patents, website
addresses, website content, domain names, e-mail addresses, patent rights,
licenses, brand names, trade secrets and trade dress) owned or used by Seller
in the operation of the Business, including but not limited to those identified
on Schedule 2.01(d) (the “IP Rights”);

(e)           All computer hardware owned by Seller
and used in connection with or otherwise related to the Business, including but
not limited to the computer hardware identified on Schedule 2.01(e) (the “Hardware”);

(f)            All other equipment, furniture and
appurtenances owned by Seller and used in connection with or otherwise related
to the Business, including but not limited to the equipment, furniture and
appurtenances identified on Schedule 2.01(f) (the “Other Equipment”);

(g)           All inventory, supplies and
expendable assets specifically related to the Business, including but not
limited to those identified on Schedule 2.01(g) (the “Supplies”);

(h)           All rights of Seller under the
contracts, commitments, leases, licenses and other agreements related to the
Business (other than Customer Contracts) which are specifically identified on
Schedule 2.01(h) (the “Other Agreements”);

(j)            All permits, licenses, franchises,
consents or authorizations issued by, and all registrations and filings with,
any Governmental Authority solely in connection with 

 2
 

 

the Business, whenever
issued or filed, excepting only those which by law or by their terms are
non-transferable and those which have expired (the “Permits”);

(k)           All warranties and guarantees of
manufacturers, contractors or suppliers which pertain to the Business (the “Warranties”);

(l)            All claims of Seller against third
parties related to the Business, whether known or unknown, fixed or continent
(the “Claims”);

(m)          All of Seller’s goodwill and other
intangibles associated with the Business and the operation thereof, including
but not limited to any goodwill associated with any Customers; and

(n)           All papers, documents, files and
records in Seller’s care, custody or control, whether paper or electronic,
relating to any or all of the above-described Purchased Assets, including but
not limited to all Customer lists, contracts, logs, correspondence, billing
records, files and sales records.

Section
2.02.  Excluded Assets.  Seller shall retain and not sell, convey,
assign or deliver to Buyer, and Buyer shall not purchase or accept from Seller,
any and all other assets not specifically identified as the Purchased Assets,
including, without limitation, the following properties and assets of Seller
(the “Excluded Assets”):

(a)           All cash and accounts receivable;

(b)           All rights of Seller pursuant to any
real estate leases, vehicle leases and equipment leases;

(c)           All customers of Seller’s “Storm
Beacon” product, including but not limited to those identified on Schedule
2.02(c) (the “Storm Beacon Customers”);

(d)           All computer hardware and related
items not specifically listed on Schedule 2.01(e) that have a shared use,
including but not limited to those identified on Schedule 2.02(d) (“Excluded
Hardware”);

(e)           All general office equipment not
specifically listed on Schedule 2.01(f), including, but not limited to copy
machines, telephones, facsimile machines and office furniture;

(f)            All rights and interests under any
Employee Benefit Plan;

(g)           Except as provided in
Section 3.14, all financial and business records of Seller which do not
directly and solely relate to the Purchased Assets;

(h)           Any assets not related to the
Business, including but not limited to those identified on
Schedule 2.02(h) (the “Unrelated Assets”);

 3
 

 

(i)            All other assets and properties of
Seller of every kind, character or description, other than the Purchased
Assets, which are owned, used or held for use (whether or not exclusively) by
Seller, wherever located, whether or not similar to the items detailed under
the Purchased Assets; and

(j)            All consideration to be received by
Seller under this Agreement and all other rights of Seller hereunder.

Section
2.03.  Assumed Forward Looking
Obligations; Excluded Liabilities.  Buyer shall assume all obligations incurred
after the Effective Time or accruing after the Effective Time related to the
Customer Contracts and Other Agreements purchased by Buyer pursuant to
Section 2.01 hereof (the “Forward Looking Obligations”).  Buyer shall not assume any other Liabilities,
obligations, contracts, leases and/or commitments of Seller of any nature, and
nothing contained or described in this Agreement shall obligate Buyer to assume
any other Liabilities, obligations, contracts or commitments of Seller, it
being agreed that Buyer shall not assume nor in any manner be liable for, and
Seller shall remain liable for and discharge and shall indemnify Buyer against
and hold Buyer harmless from, all other debts, Liabilities and obligations of
Seller incurred prior to or as of the Effective Time or arising prior to or as
of the Effective Time, or incurred after the Effective Time or arising after
the Effective Time in connection with or relating to the Business prior to the
Effective Time.  Without limiting the
foregoing, the Parties agree that Seller shall be solely responsible and liable
for, among other things, all Liabilities for Taxes and similar items however
designated, and all interest, penalties and additions to Tax, including Income
Taxes and all accrued real property, personal property, sales, use and payroll
Taxes incurred or arising prior to or as of the Effective Time, or incurred or
accrued after the Effective Time in connection with or relating to the
operation of the Business prior to the Effective Time.

Section
2.04.  Purchase Price.  Subject to adjustment as provided in Section
2.07, the total purchase price to be paid for the Purchased Assets and the
other covenants and agreements of Seller set forth herein (the “Purchase Price”)
shall be $1,900,000, less the amount of any fees or other amounts paid by
Customers to Seller prior to the Effective Time on account of products or
services to be provided to Customers after the Effective Time (the “Prepaid
Fees”), with the amount of such Prepaid Fees to be determined by the Parties
prior to Closing.  The Purchase Price
shall be payable to Seller as set forth in Section 2.06.

Section
2.05.  Closing.  Subject to the satisfaction or waiver of the
conditions set forth in Article VII hereof, the closing with respect to
the transactions contemplated herein (the “Closing”) shall take place on June
30, 2006 or at such other time as Buyer and Seller may mutually agree in
writing (the “Closing Date”) and shall become effective at 11:59:59 p.m.
Central Daylight Savings Time on June 30, 2006 or at such other time as Buyer
and Seller may mutually agree in writing (the “Effective Time”).  All Purchased Assets and related revenue,
expenses, responsibility and risk of loss shall pass to Buyer as of the
Effective Time.

Section
2.06.  Payment of Purchase Price.  Subject to adjustment as provided in Section
2.07 and set off for any indemnification claims of Buyer pursuant to Section
8.02(a), the Purchase Price shall be paid as follows:

 4
 

 

(a)           Closing Payment.  At Closing, Buyer shall pay to Seller (or its
designee(s)) the sum of $1,566,137.39 (the “Closing Payment”), in immediately
available funds via wire transfer pursuant to wiring instructions provided by
Seller to Buyer at least three (3) Business Days prior to Closing.

(b)           Consent Holdback.  The amount of $285,000 (the “Consent Holdback”)
shall be withheld from payment at Closing and shall be payable as follows:

(i)            On the date which is three (3)
months following the Closing Date (the “First Consent Date”), Buyer shall pay
to Seller the amount of the Consent Holdback which is in excess of the total of
all Consent Revenue associated with all Non-Consenting Customers as of the
First Consent Date.

(ii)           On the date which is six (6) months
following the Closing Date (the “Second Consent Date”), Buyer shall pay to
Seller the amount of the Consent Holdback which is in excess of the total of
all Consent Revenue associated with all Non-Consenting Customers as of the
Second Consent Date.

(iii)          On the date which is nine (9) months
following the Closing Date (the “Third Consent Date”), Buyer shall pay to
Seller the amount of the Consent Holdback which is in excess of the total of
all Consent Revenue associated with all Non-Consenting Customers as of the
Third Consent Date.

(iv)          On June 30, 2007 (the “Final Consent
Date”), Buyer shall pay to Seller the amount of the Consent Holdback which is
in excess of the total of all Consent Revenue associated with all
Non-Consenting Customers as of the Final Consent Date

All amounts due pursuant
to this Section 2.06(b) shall be paid in immediately available funds via wire
transfer pursuant to wiring instructions provided by Seller to Buyer at least
three (3) Business Days prior to the date on which such payment is due.

Section 2.07. 
Purchase Price Adjustment.  Schedule
2.07 sets forth each Customer Contract for which consent to assignment is
required (each an “Assignment Consent Customer”) and each Customer of Seller
for which Buyer shall provide services pursuant to a Subcontract for which
consent to subcontract is required (each a “Subcontract Consent Customer” and
together with the Assignment Consent Customers, the “Consent Customers”) and
for which such consent to assignment or subcontract has not been delivered to
Buyer as of the date hereof, together with the estimated 2006 fiscal year
annual revenues of each such Consent Customer (the “Consent Revenue”).  If Seller fails to deliver to Buyer the
Consent of any Consent Customer to the assignment to Buyer of the Customer
Contract of such Consent Customer or to the subcontracting of services to be
provided by Buyer to such Consent Customer, as applicable (each a “Non-Consenting
Customer”), on or prior to the Final Consent Date, then the Purchase Price
shall be reduced by an amount equal to the total of all Consent Revenue
associated with such Non-Consenting Customers. 
For the purpose of this Section 2.07, (a) with respect to any Assignment
Consent Customer, Consent shall mean: (i) 
the receipt by Buyer of payment for services rendered from an Assignment
Consent Customer pursuant to a Customer Contract, (ii) 

 5
 

 

the written acknowledgement by an Assignment Consent
Customer, in a form reasonably acceptable to Buyer (which may include e-mail or
other form of electronic communication), whereby such Assignment Consent
Customer agrees to the assignment of the Customer Contract, (iii) any
subsequent award to Buyer of a contract put out to bid by an Assignment Consent
Customer pursuant to which Buyer shall perform services substantially similar
to services provided pursuant to the applicable Customer Contract, or (iv) the
Consent by an Assignment Consent Customer to the subcontracting of such
Customer Contract to Buyer (in the manner provided for in subparagraph (b)
below) and the execution of a Subcontract by the parties hereto, and (b) with
respect to any Subcontract Consent Customer, Consent shall mean the consent of
a Subcontract Consent Customer in the form required pursuant to the applicable
contract.  The amount of the Purchase
Price reduction pursuant to this Section 2.07 shall be withheld from the
payment of the Consent Holdback as provided in Section 2.06(b) and in no event
shall the amount of such Purchase Price reduction exceed the amount of the
Consent Holdback.

Section 2.08.  Allocation of Purchase Price.  The Purchase Price
shall be allocated among the Purchased Assets as mutually agreed by Buyer and
Seller within ninety (90) days following the Effective Time.  Buyer and Seller agree to use such allocation
for all tax and reporting purposes and not to take any contrary position with
respect thereto.  In the event that the
Purchase Price is adjusted as the result of the operation of Section 2.07 or
any indemnification obligation pursuant to Section 8.02(a), the allocation of
the Purchase Price shall be revised accordingly as soon as reasonably
practicable.  Buyer and Seller shall take
all actions and file all Tax Returns (including but not limited to Internal
Revenue Service Form 8594) consistent with such allocation unless required to
do otherwise by law.

ARTICLE
III

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller represents and
warrants to Buyer that the statements contained in this Article III are
correct and complete as of the date of this Agreement and will be correct and
complete as of the Effective Time, except as set forth in the Disclosure
Schedules attached hereto and incorporated herein by this reference (the “Disclosure
Schedules”).  The Disclosure Schedules
will be arranged in paragraphs corresponding to numbered Sections contained in
this Article III.

Section
3.01.  Organization.  Seller has been duly organized and is a
validly existing corporation in good standing under the laws of the State of
Missouri.  Seller has all corporate power
required to carry on the Business as now conducted and to sell, transfer and
assign the Purchased Assets to Buyer. 
Quixote Corporation, a Delaware corporation (“Quixote”) is the sole legal
and beneficial owner of all of the outstanding capital stock of Quixote
Transportation Safety, Inc., a Delaware corporation, which is the sole legal
and beneficial owner of all of the outstanding capital stock of Seller.  There are no outstanding agreements for the
purchase or acquisition of any of the shares of Seller’s capital stock from
Seller or Quixote.  There are no
outstanding securities exercisable for or convertible into any capital stock of
Seller.

Section
3.02.  Authorization.  The execution, delivery and performance of
this Agreement by Seller is within Seller’s corporate power, has been duly
authorized by all necessary action on the part of Seller and, when executed and
delivered in accordance with the 

 6
 

 

terms hereof, will constitute a valid and legally
binding obligation of Seller enforceable in accordance with its terms.

Section
3.03.  Noncontravention.  Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions contemplated hereby,
will (a) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge or other restriction of any government,
governmental agency or court to which Seller is subject or any provision of the
articles of incorporation or bylaws of Seller or (b) conflict with, result
in a breach of, constitute a default under, result in the acceleration of or
create in any party the right to accelerate, terminate, modify or cancel any
material agreement, contract, lease, license, instrument or other arrangement
to which Seller is a party or by which Seller is bound or to which any of the
Purchased Assets are subject (or result in the imposition of any Security
Interest upon any of the Purchased Assets).

Section
3.04.  Litigation.  Except as disclosed in Schedule 3.04, there
is no action, order, writ, judgment or decree outstanding or suit, litigation
or proceeding pending or, to the Knowledge of Seller, threatened, against
Seller with respect to the Business, the Purchased Assets or the execution of
this Agreement or the consummation of the transaction contemplated thereby, nor
has any such action, order, writ, judgment or decree been outstanding or suit,
litigation or proceeding been pending against Seller during the past three (3)
years.

Section
3.05.  Assumed Agreements.

(a)           Schedule 2.01(a) identifies all
of the contracts, agreements or other relationships, whether written or oral,
which are in effect as of the date of this Agreement and pursuant to which
Seller sells, licenses or otherwise provides products or services of the
Business to third parties.  Seller has no
contracts, agreements or other relationships pursuant to which Seller sells,
licenses or otherwise provides products or services of the Business to third
parties other than the Customer Contracts.

(b)           Current, correct and complete copies
of all written agreements included within the Purchased Assets (including but
not limited to written Customer Contracts and Other Agreements), and summaries
of all oral agreements included within the Purchased Assets (including but not
limited to oral Customer Contracts and Other Agreements), have been provided to
or made available for inspection by Buyer.

(c)           Each written agreement included
within the Purchased Assets was duly executed and delivered by, and constitutes
a valid and binding obligation of, Seller, enforceable against Seller in
accordance with its terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles.

(d)           Each written agreement included
within the Purchased Assets was duly executed and delivered by, and to the
Knowledge of Seller, as of the Effective Time will constitute a valid and
binding obligation of, the other party to the agreement, enforceable against
the other party to the agreement in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws 

 7
 

 

of general applicability
relating to or affecting creditors’ rights and to general equity principles.

(e)           Each agreement included within the
Purchased Assets constitutes the entire agreement to which Seller is a party
with respect to the products and/or services being sold, licensed, acquired or
retained to or from the other party thereto.

(f)            There has been no material breach of
the terms of any agreement included within the Purchased Assets by Buyer or, to
Seller’s Knowledge, by any other party to such agreement.

(g)           As of the Effective Time, each
agreement included within the Purchased Assets will be legal, valid, binding
and enforceable by Buyer, and in full force and effect on identical terms.

(h)           Seller has not received any notice
and has no Knowledge of any actual or threatened termination of any agreement
included within the Purchased Assets.

(i)            Except as set forth on
Schedule 3.18, each agreement included within the Purchased Assets is
assignable to Buyer without any consent or approval of any person.

Section 3.06. 
Customers.

(a)           Except for customers of Seller’s “Storm
Beacon” product which will be terminated by Seller under their agreements or as
soon as otherwise practicable, Schedule 2.01(a) sets forth a complete and
correct list of all customers of the Business, together with the estimated 2006
fiscal year annual revenues of each such customer identified therein.  Seller provides no products or services of
the Business to any third-parties other than the Customers.

(b)           Except as set forth in
Schedule 3.06(b), Seller is not and has not been engaged in any material
dispute with any of its Customers since June 30, 2005.  Seller has not received any actual notice and
does not have any reason to believe that any of its Customers has ceased, or
after the Effective Time will cease, to use the products or services of the
Business or that any of its Customers has substantially reduced, or after the
Effective Time will substantially reduce, the use of such products or services
at any time.

(c)           Except as set forth in
Schedule 3.06(c), to the Knowledge of Seller, none of the Customers have
filed a petition in bankruptcy or voluntary reorganization, commenced any case
or proceeding under applicable bankruptcy laws or other similar laws, or had
commenced against them any case or proceeding under any applicable bankruptcy
or other similar laws, other than any petitions, cases or proceedings which
have been dismissed prior to the date of this Agreement.

(d)           Seller has provided Buyer with true,
accurate and complete Customer information, including but not limited to
contracts, pricing and addresses, as requested by Buyer.

 8
 

 

Section
3.07.  Hardware and Other Equipment.  Schedules 2.01(e) and 2.01(f) set forth an
accurate and complete list of all Hardware and Other Equipment owned by Seller
and used in connection with or otherwise related to the Business, and all of
such Hardware and Other Equipment is in good operating condition (reasonable
wear and tear excepted).

Section
3.08.  Software, Licenses and Data Bases.

(a)           Schedule 2.01(b) sets forth a
list of all of the software and licenses which are used by Seller in connection
with or otherwise related to the Business and are material to the operations
thereof, including all computer software programs and related documentation and
materials, other than any computer software programs and related documentation
and materials subject to “shrink wrap” and/or “click wrap” licenses.  Schedule 2.01(c) sets forth a list of
all data bases which are used by Seller in connection with or otherwise related
to the Business and are material to the operations thereof.

(b)           As specified on Schedules 2.01(b) and
(c), Seller either owns, free and clear of any liens, all right, title and
interest in all Software and Licenses and Data Bases and the media included in
the Purchased Assets on which such Software and Licenses and Data Bases owned
by Seller is contained, or has a valid license to use such Software and
Licenses and Data Bases contained on such media included in the Purchased
Assets and licensed or otherwise made available for use to it.

(c)           The use by Seller of any Software and
Licenses and Data Bases that are proprietary to Seller does not conflict with,
misappropriate or infringe upon the rights or ownership interests of any other
Person and, to the Knowledge of Seller, the use by Seller of any third-party
Software and Licenses and Data Bases does not conflict with, misappropriate or
infringe upon the rights or ownership interests of any other Person.

(d)           No claims (i) challenging the
validity, effectiveness or, other than with respect to any licensed Software
and Licenses and Data Bases, ownership by Seller of any of the Software and
Licenses and Data Bases or (ii) to the effect that the use, distribution,
licensing, sublicensing, sale or any other exercise of rights in the Software
and Licenses and Data Bases by Seller or its agents or use by its customers
infringes or will infringe on any rights or interests of any Person, have been
asserted or, to the Knowledge of Seller, are threatened by any Person, and Seller
has no Knowledge of the existence of any facts which could reasonably support
such a claim.

(e)           None of the Software and Licenses or
Data Bases contain any Self-Help Code or any Unauthorized Code.

(f)            The Software and Licenses and Data
Bases and the transferred rights and licenses thereto are sufficient to operate
the Business after Closing in the manner it was operated prior to Closing and
will not result in any additional license fees or charges after Closing in the
operation of the Business other than any license fees required to be paid
pursuant to the licenses identified on Schedules 2.01(b) and (c).

 9

 

Section 3.09. 
Intellectual Property.

(a)           Schedule 2.01(d) sets forth a
true and complete list of (i) all United States, state and foreign
registrations of and applications for patents, trademarks, service marks, trade
names and copyrights owned by Seller, (ii) all patent licenses, trademark
licenses, service mark licenses, trade name licenses, trade secret licenses and
copyright licenses held by Seller, and (iii) all other intellectual property
rights, owned, held or used by Seller in connection with the Business.

(b)           Except as set forth on
Schedule 3.09, Seller is the sole and exclusive owner of the entire right,
title, and interest in and to all IP Rights listed on Schedule 2.01(d).

(c)           All IP Rights are subsisting and have
not been adjudged invalid or unenforceable, in whole or in part, and Seller has
performed all acts and has paid all renewal, maintenance, and other fees and
taxes required to maintain each and every registration and application of
patents, trademarks, service marks, trade names and copyrights in full force
and effect.

(d)           Except as set forth on Schedule 3.09,
all of the IP Rights are valid and enforceable; no holding, decision, or
judgment has been rendered in any action or proceeding before any court or
administrative authority challenging the validity of, Seller’s right to
register, or Seller’s rights to own or use, any IP Rights and no such action or
proceeding is pending or, to the Knowledge of Seller, threatened.

(e)           All registrations and applications
for patents, trademarks, service marks, trade names and copyrights are standing
in the name of Seller, and none of the patents, trademarks, service marks,
trade names, copyrights or trade secrets has been licensed by Seller to any
Affiliate or third party.

(f)            Seller has been using appropriate
statutory notice of registration in connection with its use of registered
trademarks and service marks, proper marking practices in connection with the
use of patents, and appropriate notice of copyright in connection with the
publication of copyrights.

(g)            Except as set forth on Schedule
3.09, Seller’s operation of the Business does not infringe upon or otherwise
violate any trademark, service mark, trade name, patent, copyright, trade
secret or other intellectual property right owned or controlled by a third
party; no claim has been made that the use of any IP Rights owned or used by
Seller (or any of its respective licensees) violates the asserted rights of any
third party.

(h)           To the Knowledge of Seller, no third
party is infringing upon or otherwise violating any rights in any IP Rights
owned or used by Seller, or any of its licensees.

(i)            No settlement or consents, covenants
not to sue, nonassertion assurances, or releases have been entered into by  or otherwise binding upon Seller that
adversely affect Seller’s rights to own or use any IP Rights.

 10
 

 

(j)            Seller has not made a previous
assignment, sale, transfer or agreement constituting a present or future
assignment, sale, transfer or agreement related to any IP Rights that has not
been terminated or released.

(k)           The IP Rights are sufficient to
operate the Business after Closing in the manner in which it was operated prior
to Closing and will not result in any additional license fees or charges after
Closing in the operation of the Business, other than those regularly paid by
Seller in the ordinary course of business prior to Closing.

Section
3.10.  Supplies.  Schedule 2.01(g) sets forth an accurate
and complete list of all of the inventory, supplies and expendable assets which
are used by Seller in connection with the Business.

Section
3.11.  St. Louis Facility.  A correct and complete copy
of the real estate lease pertaining to Seller’s facility located at 11612
Lilburn Park Road, St. Louis, Missouri (such facility being referred to herein
as the “St. Louis Facility,” and such real estate lease being referred to
herein as the “St. Louis Real Estate Lease”) has been provided to or made
available for inspection by Buyer.  The
employees to be leased under the Employee Leasing Agreement will continue to
have access to the St. Louis Facility and while there will have the use of all
of the tools and equipment necessary for them to provide the same services for
Buyer that they have provided to Seller prior to the Closing.

Section
3.12.  Compliance With Laws.  Seller is in compliance with, is not in
violation of and, to Seller’s Knowledge, is not under investigation with
respect to any suspected or alleged violation of, any laws applicable to the
Purchased Assets and/or conduct of the Business.

Section
3.13.  Tax Matters.  Except as set forth on Schedule 3.13,
all Tax Returns for all periods ending on or before the Effective Time that
are, were or may in the future be required to be filed by or with respect to
the Business or the Purchased Assets, either separately or as a member of an
affiliated group of entities, have been filed or will be filed on a timely
basis, and in accordance in all material respects with the laws, regulations
and administrative requirements of any applicable Taxing Authority.  All such Tax Returns that have been filed on
or before the Effective Time or will be filed after the Effective Time relating
to the Business or Purchased Assets prior to the Effective Time, were and
continue to be or, when filed, will be true, correct and complete in all
material respects; and, except as set forth on Schedule 3.13, Seller has
paid, or will pay when due, all Taxes relating to the Business or the Purchased
Assets, including personal property taxes and payroll taxes, that have or may
become due for all periods (or portions thereof) ending on or before the
Effective Time.  There are no liens with
respect to Taxes upon any of the Purchased Assets (except for Taxes not yet
due).

Section 3.14. 
Financial Statements.

(a)           Schedule 3.14 to this Agreement
sets forth the unaudited balance sheets and statements of income pertaining to
the Business for the twelve (12) month periods ending June 30, 2005 and 2004,
certified by an officer of Seller (the “Financial Statements”).  The revenue set forth in the income statement
for the Business has been recognized in accordance with generally accepted
accounting principles in the United

 11
 

 

States in all material
respects.  The Financial Statements have
been prepared in accordance with accepted accounting principles in the United
States, applied on a consistent basis through the periods indicated and with
each other, are complete and correct in all material respects, are consistent
with the books and records of Seller, and accurately and fairly present the
financial position of the Business as of the date of the Financial Statements,
as well as the results of Seller’s Business operations for the periods
indicated.

(b)           The books and records of Seller
(i) accurately reflect all material items of income and expense and all
assets and Liabilities of Seller, (ii) are in all material respects
complete and correct and do not contain any material inaccuracies or
discrepancies, (iii) have been maintained in accordance with good business
and accounting practices, and (iv) have been made available to Buyer for
its inspection.

(c)           Seller has no Liability (and there is
no basis for any present or future proceeding against Seller giving rise to any
Liability), other than (i) Liabilities set forth on the face of the
Financial Statements (rather than the notes thereto), (ii) Liabilities
incurred in the Ordinary Course of Business consistent with past practice
subsequent to December 31, 2005 and (iii) obligations under Customer
Contracts and Other Agreements incurred in the Ordinary Course of Business
consistent with past practice subsequent to December 31, 2005, all of
which Liabilities and obligations referred to in the foregoing clauses (i)
through (iii), individually or in the aggregate, are not material to the
financial condition or operating results, assets or prospects of Seller.

Section 3.15. 
Absence of Specified Changes.  Except as listed on Schedule 3.15, since
December 31, 2005, there has not been any:

(a)           Material Adverse Effect on the
financial condition, Liabilities, assets, business, operating results or
prospects of the Business and/or the Purchased Assets;

(b)           destruction, damage to or loss of any
Business assets of Seller (whether or not covered by insurance) that has had or
may have a Material Adverse Effect on the assets, financial condition,
business, operating results or prospects of the Business;

(c)           labor disputes, preliminary union
organization or requests for union representation concerning the Business;

(d)           increase in the salary or other
compensation or benefits payable or to become payable to any of the employees
of Seller whose duties relate to the Business (“Employees”), other than those
increases provided to Employees in the Ordinary Course of Business;

(e)           sale or transfer of any Business
asset of Seller;

(f)            execution, creation, amendment,
nonrenewal or termination of any contract, agreement or license pertaining to
the Business;

 12
 

 

(g)           additional indebtedness for borrowed
money involving or relating to the Business or any of the Purchased Assets;

(h)           creation or assumption by Seller of
any mortgage, lien, Security Interest, pledge or other encumbrance on any of
the Purchased Assets;

(i)            waiver of any rights or cancellation
or forgiveness of any claims or indebtedness related to any Purchased Asset or
that would otherwise be a Purchased Assets;

(j)            any receipt by Seller of
(i) notice of any loss of, (ii) material order cancellation by,
(iii) material pricing or other contract changes with respect to,
(iv) material dispute with or (v) material complaints from, any
Customers;

(k)           initiation, receipt or settlement of
any action, arbitration, audit, hearing, investigation, litigation, lawsuit or
other similar proceeding affecting the Business or the Purchased Assets;

(l)            other event or condition of any
character that has or might reasonably have a Material Adverse Effect on the
financial condition, business, assets, operating results or prospects of the
Business and/or the Purchased Assets;

(m)          conduct or activity concerning the
Business and/or the Purchased Assets which has not been in the Ordinary Course
of Business; or

(n)           agreement by Seller to do any of the
things described in the preceding clauses (a) through (m).

Section 3.16. 
Title.

(a)           Except as identified on
Schedule 3.16(a), Seller is the owner of good and valid title to all of
the Purchased Assets, free and clear of all liabilities, liens, charges,
claims, licenses, rights, encumbrances and restrictions on transfers other than
the Forward Looking Obligations and Permitted Liens, if any; and, no financing
statement covering all or any portion of the Purchased Assets and naming Seller
as debtor has been filed in any public office which has not been released, and
Seller has not signed any financing statement or security agreement as debtor
or borrower which financing statement or security agreement covers all or any
portion of the Purchased Assets which has not been released.

(b)           As of the Effective Time, Buyer will
acquire the Purchased Assets for its exclusive use free and clear of all
liabilities, liens, charges, claims, licenses, rights, encumbrances and
restrictions on transfers, except those that may arise from acts of Buyer, the
Forward Looking Obligations or any Permitted Liens.  As of the Effective Time, Seller shall have no
right, title or interest in the Purchased Assets.

Section
3.17.  Licenses and Permits.  Schedule 3.17 hereto contains a list and
description of all licenses, authorizations and permits required by any
Governmental Authority in

 13
 

 

connection with the operation of the Business as
presently being conducted, including but not limited to the Permits.  Seller has all governmental licenses,
authorizations and permits required to carry on the Business as now conducted
and to sell, transfer and assign the Purchased Assets to Buyer, and all such
licenses, authorizations and permits are in full force and effect, except for
any licenses, authorizations and permits the absence of which, individually or
in the aggregate, would not have a Material Adverse Effect.  Seller is, and at all times during the past
two (2) years has been, in full compliance with all of the terms and
requirements of each of the licenses, authorizations and permits listed on
Schedule 3.17.  No event has
occurred or circumstance exists that may (with or without notice or lapse of
time): (a) constitute or result directly or indirectly in a violation of, or a
failure to comply with, any term or requirement of any license, authorization
or permit listed on Schedule 3.17, or (b) result directly or indirectly in
the revocation, withdrawal, suspension, cancellation or termination of, or any
modification to, any license, authorization or permit listed on
Schedule 3.17.

Section
3.18.  Consents and Approvals.  Schedule 3.18 hereto contains a list and
description of all notices or filings to and consents or approvals of any third
parties, including but not limited to any Governmental Authorities, customers,
suppliers, lessors or lenders, which may be necessary in order to effectively
and legally transfer all of the Purchased Assets to Buyer or to otherwise
complete the transactions contemplated by this Agreement, except for any
notices, filings, consents or approvals the absence of which, individually or
in the aggregate, would not have a Material Adverse Effect on the Business or
the Purchased Assets.

Section
3.19.  Broker or Finders’ Fees.  There is no third party investment banker,
broker, finder or other intermediary which has been retained by or is
authorized to act on behalf of Seller who would be entitled to any fee or
commission in connection with this Agreement or the transactions contemplated
hereby.

Section 3.20. 
Employees; Compensation; Labor.  Except as set forth on Schedule 3.20:

(a)           None of the Employees are subject to
a written employment agreement or change of control agreement;

(b)           As of the date of this Agreement and
as of the Closing Date, no general manager, operations manager, sales manager
or, to the Knowledge of Seller, any other Employee has formally indicated his
or her intention to reject an offer of employment from Buyer;

(c)           There are no unions representing the
interests of any of the Employees and, to the Knowledge of Seller, there are no
Employees seeking or attempting to organize other union representation;

(d)           There are no agreements between
Seller and any labor organizations representing any of the Employees;

(e)           There are neither pending nor, to the
Knowledge of Seller, threatened any strikes, work stoppages, work disruptions
or employment disruptions by any of the Employees;

 14
 

 

(f)            There are not any pending or, to the
Knowledge of Seller, threatened suits, actions, administrative proceedings,
hearings, arbitrations or other proceedings between Seller and any of the
Employees;

(g)           Since June 30, 2004, Seller
(i) has complied in all material respects with all laws and regulations
relating to the employment of labor, including any provisions thereof relating
to wages, hours, collective bargaining and the payment of social security and
similar Taxes, (ii) is not liable for any material arrearages of wages or
any Taxes or penalties for failure to comply with any of the foregoing,
(iii) has not committed any material unfair labor practices, and
(iv) has complied in all material respects with all applicable provisions
of the Occupational Safety and Health Act of 1970 and regulations promulgated
pursuant thereto; and

(h)           To the Knowledge of Seller, since
June 30, 2004, none of the Employees has filed any complaint relating to
Seller, the Business or the employment of such Employee with any governmental
or regulatory authority or brought any action in law or in equity with respect
to.

Section 3.21.  Employee Benefit
Plans.  Except as set forth on Schedule 3.21, each
Employee Benefit Plan that covers Employees (and each related trust, insurance
contract, or fund) complies in form and in operation in all material respects
with the applicable requirements of ERISA, the Code, and other applicable
laws.  Buyer shall not incur any
liability with respect to any Employee Benefit Plan that covers Employees.

Section
3.22.  Insurance.  Schedule 3.22 sets forth an accurate and
complete list of all indemnity bonds for the Business. With respect to each
bond:  (a) all premiums with respect
thereto are currently paid and the bond is legal, valid, binding and enforceable
in accordance with its terms and is in full force and effect, (b) Seller
is not in material breach or default of the bond and, to Seller’s Knowledge, no
event has occurred which, with notice or lapse of time, would constitute such a
breach or default, or permit termination or modification of the bond,
(c) Seller has not received any notice of cancellation or non-renewal of
the bond, and (d) the consummation of the transactions contemplated by
this Agreement will not cause a breach, termination, modification or
acceleration of the bond.

Section
3.23.  Fair Value.  After due consideration, Seller’s Board of
Directors has determined and represent to Buyer that the Purchase Price
constitutes full and fair consideration and reasonably equivalent value for the
sale of the Purchased Assets.

Section 3.24. 
Solvency.

(a)           Seller is not now insolvent and will
not be rendered insolvent by the execution and performance of this Agreement or
any of the related agreements or the consummation of the transactions
contemplated by this Agreement or any of the related agreements.  As used in this Section 3.24, “insolvent”
means that the sum of the debts and other probable liabilities of Seller exceed
the present fair saleable value of Seller’s assets.

 15
 

 

(b)           Immediately after giving effect to
the transactions contemplated by this Agreement:  (i) Seller will be able to pay its
liabilities as they become due in the usual course of its business;
(ii) Seller will not have unreasonably small capital with which to conduct
its present or future business; (iii) Seller will have assets (calculated
at fair market value) that exceed its liabilities; and (iv) taking into
account all pending and threatened litigation, any final judgments against
Seller in actions for money damages are not reasonably anticipated to be
rendered at a time when, or in amounts such that, Seller will be unable to
satisfy any such judgments promptly in accordance with their terms (taking into
account the maximum probable amount of such judgments in any such actions and
the earliest reasonable time at which such judgments might be rendered) as well
as all other obligations of Seller.  The
cash available to Seller, after taking into account all other anticipated uses
of the cash, will be sufficient to pay all such debts and judgments promptly in
accordance with their terms.

(c)           No action has been taken by or on
behalf of Seller for the termination, winding up, liquidation or dissolution of
it or to make any assignment for the benefit of creditors.  Seller is not unable to pay its debts as they
mature.  Seller has not filed a petition
in voluntary liquidation or bankruptcy or under other similar laws and has not
commenced any case or proceeding under applicable insolvency or bankruptcy laws
or other similar laws.  Seller has not
consented to the appointment of a receiver, administrator, custodian,
liquidator or trustee of all or any part of its assets.  Seller has not taken any action for the
purpose of effecting any of the foregoing. 
No order or decree has been rendered by any Governmental Authority with
respect to Seller regarding any of the foregoing.  Seller has not been adjudicated as bankrupt
or insolvent.  No petition for any
proceeding in bankruptcy, liquidation or insolvency or for the reorganization
or readjustment of indebtedness has been filed with respect to Seller.  No case or proceeding has been commenced
under any applicable bankruptcy or insolvency laws against Seller.  No receiver, administrator, custodian,
liquidator or trustee has been appointed for Seller or any part of the assets
of Seller.

Section
3.25.  Disclosure.  No representation or warranty of Seller in
this Agreement, nor any certificate, schedule, exhibit or written information
furnished or to be furnished by Seller pursuant to this Agreement or the
related agreements, or any document or certificate delivered to Buyers by or on
behalf of Seller pursuant to this Agreement or the related agreements, contains
or will contain, on the date of such statement, certificate, schedule, exhibit
or document, any untrue statement of material fact, or omits or will omit, on
such date, a material fact necessary to make the statements contained therein,
in light of the circumstances in which they are made, not misleading.

 16
 

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

 

Buyer represents and
warrants to Seller that the statements contained in this Article IV are correct
and complete as of the date of this Agreement, and will be correct and complete
as of the Effective Time.

Section
4.01.  Organization.  Buyer has been duly organized and is a
validly existing corporation in good standing under the laws of the State of
Delaware.  Buyer has all power required
to purchase, acquire and assume the Purchased Assets from Seller.

Section
4.02.  Authorization.  The execution, delivery and performance of
this Agreement by Buyer is within Buyer’s power, has been duly authorized by
all necessary action on the part of Buyer and, when executed and delivered in
accordance with the terms hereof, will constitute a valid and legally binding
obligation of Buyer enforceable in accordance with its terms.

Section
4.03.  Noncontravention.  Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions contemplated hereby,
will (a) violate any constitution, statute, regulation, rule, injunction,
judgment, order, decree, ruling, charge or other restriction of any government,
governmental agency or court to which Buyer is subject or any provision of the
articles of organization or operating agreement of Buyer or (b) conflict with,
result in a breach of, constitute a default under, result in the acceleration
of or create in any party the right to accelerate, terminate, modify or cancel
any material agreement, contract, lease, license, instrument or other
arrangement to which Buyer is a party or by which Buyer is bound.

Section
4.04.  Litigation.  There is no action, order, writ, judgment or
decree outstanding or suit, litigation or proceeding pending or, to the
Knowledge of Buyer, threatened, against Buyer with respect to the execution of
this Agreement or the consummation of the transaction contemplated thereby.

Section
4.05.  Broker or Finders’ Fees.  There is no third party investment banker,
broker, finder or other intermediary which has been retained by or is
authorized to act on behalf of Buyer who would be entitled to any fee or
commission in connection with this Agreement or the transactions contemplated
hereby.

ARTICLE
V

ADDITIONAL AGREEMENTS

Section
5.01.  Conduct of Business.  During the period from the date of this
Agreement to the Effective Time, Seller shall carry on the Business only in the
Ordinary Course of Business and in the same manner as conducted prior to the
date of this Agreement.  To the extent
consistent therewith, Seller shall use its Best Efforts to perform and satisfy
its obligations under the Customer Contracts and Other Agreements, preserve
intact the current business organization of the Business, keep available the
services of the current Employees and preserve such business

 17
 

 

relationships and goodwill with Employees, agents,
brokers, intermediaries, customers, suppliers, vendors and others having
business relationships with or interests in such business.

Section
5.02.  Employee Leasing Agreement.  Buyer and Seller shall, simultaneously with
the Closing, execute an employee leasing agreement with respect to the leasing
and outsourcing of certain employees  of
Seller to Buyer and the use of the St. Louis Facility by such employees and
Buyer (the “Employee Leasing Agreement”), substantially in the form of Exhibit
A hereto, effective as of the Effective Time.

Section
5.03.  Product Marketing Agreement.  Buyer and Quixote Transportation
Technologies, Inc., a Delaware corporation (“QTT”) shall, simultaneously with
the Closing, execute a product marketing agreement for the cross-sale and
promotion of the business services and products of Buyer and QTT (the “Product
Marketing Agreement”), substantially in the form of Exhibit B hereto, effective
as of the Effective Time.

Section
5.04.  Subcontract.

(a)           On or before July 7, 2006, Buyer and
Seller shall execute a subcontract (each a “Subcontract”) substantially in the
form of Exhibit C hereto, for the provision of services by Buyer for the
customers of Seller identified on Schedule 5.04, each Subcontract to be
effective as of the Effective Time and to continue throughout the remaining
duration of the contract being subcontracted. 
Promptly following the receipt of Consent, Buyer and Seller shall
execute a Subcontract with respect to all other contracts identified on
Schedule 5.04, to be effective throughout the remaining duration of the
contract being subcontracted.  Notwithstanding the foregoing, the parties
agree that, effective upon the Effective Time, Buyer shall perform the
forecasting requirements set forth in each of the contracts listed on Schedule
5.04 and, in consideration of such services, Seller shall pay to Buyer that
share of the payments received by Seller from the customer which are allocable
to such forecasting services.

 (b)          In
the event Seller enters into subsequent or additional contracts that include
forecasting services with those customers identified on Schedule 5.04, or any
customers for which a Subcontract is entered into due to the inability to
otherwise obtain a Consent pursuant to Section 2.07, then such forecasting
services shall also be subcontracted to Buyer.

Section 5.05. 
Public Announcements. 
Prior to July 6, 2006, Seller shall make no internal or external
announcement to its Employees and shall make no public announcements relating
to the subject matter of this Agreement. 
Seller shall not issue any press release and shall direct and cause its
officers, directors, employees, consultants and advisors not to issue any press
release relating to the subject matter of this Agreement without the prior
written approval of Buyer.  Seller and
Buyer will consult with each other concerning the means by which Seller’s
employees, Customers, vendors and suppliers and others having dealings with
Seller will be informed of the contemplated transactions for a reasonable time
following the Closing, and Buyer will have the right to be present for any such
communication.

 

 18

 

Section
5.06.  No Solicitation.  From and after the date of this Agreement,
until the earlier of the Effective Time or the termination of this Agreement
pursuant to Article VIII, Seller shall not, and Seller shall cause its
officers, directors, shareholders, employees, agents, representatives and
advisors not to:  (a) solicit,
initiate or encourage (including by way of furnishing information), or take any
other action to facilitate the submission of, any inquiry, proposal or offer
from any Person relating to (i) any purchase, pledge or other acquisition
of any material portion of the Business assets of Seller or of any of Seller’s
capital stock or options of or for any such capital stock, options or equity
interests, whether by any merger, consolidation, business combination,
amalgamation, asset sale, stock issuance, recapitalization, tender offer,
exchange offer, liquidation, dissolution, license or any other similar
transaction (other than the transaction contemplated by this Agreement), or
(ii) any other similar transaction, the consummation of which could
reasonably be expected to impair, impede, interfere with, prevent or materially
delay the transaction contemplated by this Agreement or could reasonably be
expected to dilute the benefits to Buyer of the transactions contemplated by
this Agreement (collectively, “Transaction Proposals”); (b) agree to or
endorse any Transaction Proposal (whether such agreement or endorsement is
oral, in writing, absolute, revocable, contingent or conditional); or
(c) enter into or participate in any discussions or negotiations regarding
any Transaction Proposal, or furnish to any other Person any information with
respect to Seller, the Purchased Assets or the Business in connection with any
Transaction Proposal, or otherwise cooperate in any way with, or assist,
participate in, facilitate or encourage, any effort or attempt by any other
Person to submit or otherwise act in furtherance of a Transaction
Proposal.  Without limiting any of the
foregoing provisions of this Section 5.06, it is understood that any
violation of the restrictions set forth in this Section 5.06 by any
investment banker, financial advisor, attorney, accountant or other agent or
representative of Seller shall be deemed a breach of this Section 5.06 by
Seller.

Section
5.07.  Representations and Warranties.  Each Party shall promptly notify the other
Party of any events or occurrences after the date hereof which cause or result,
or may cause or result, in any of the representations or warranties set forth
in this Agreement ceasing to be true and accurate in any material respect.

Section
5.08.  Disclosure Schedules.
 On
or prior to the date hereof, Seller has delivered to Buyer all Disclosure
Schedules required to be prepared and delivered by Seller hereunder and
delivered on the date hereof.  Seller
shall be entitled to further supplement or amend any Disclosure Schedule only
if doing so is required to update such Disclosure Schedule to reflect events or
occurrences after the date hereof, and Seller shall promptly provide to Buyer
any such updates after such event or occurrence.  In the event that any item included on any
supplement or amendment to the Disclosure Schedules reveals any facts or
circumstances which, in the reasonable opinion of Buyer, would have, individually
or in the aggregate, a Material Adverse Effect on the Purchased Assets or the
Forward Looking Obligations, or Buyer’s ability to conduct the Business
immediately following the Closing substantially as such is presently conducted,
Buyer and Seller shall immediately commence negotiations with respect to a
mutually agreeable adjustment to the Purchase Price and if Buyer and Seller are
unable to mutually agree upon an adjustment to the Purchase Price within five
(5) Business Days following the commencement of negotiations, Buyer may, by
written notice to Seller, terminate this Agreement.

 19
 

 

Section 5.09. 
Due Diligence. 
During the period from the date of this Agreement to the Effective Time,
Buyer shall have the right to inspect and review, and Seller agrees to make
available to Buyer or its representatives, any of the Purchased Assets and any
documents, records, data, agreements, financial statements or other items
related to the Purchased Assets or the Business which Buyer reasonably deems
necessary in order to evaluate the Purchased Assets, the Business and/or the
transactions contemplated by this Agreement. 
Unless the Parties otherwise agree to the contrary, any inspection or
review to be conducted on Seller’s premises shall be conducted during normal
business hours and upon reasonable prior notice.  Seller shall use its Best Efforts to
cooperate and assist with Buyer’s due diligence and to provide to Buyer all
documents, records, data, agreements, financial statements and other items
reasonably requested by Buyer in connection with its due diligence.

ARTICLE
VI

POST-CLOSING COVENANTS

Section
6.01.  Further Action.  The Parties agree that with respect to the
period following the Closing, in case at any time after the Closing any further
action is necessary or desirable to carry out the purposes of this Agreement,
each of the Parties will take
such further action (including the execution and delivery of such further
instruments and documents) as any other Party reasonably may request, and all
at the sole cost and expense of the requesting Party (unless the requesting
Party is entitled to indemnification therefore under Section 8.02 hereof);
provided that such cost and expense shall be limited to reasonable
out-of-pocket expenses without any application of overhead or profit.

Section
6.02.  Consents and Authorizations.  To the extent waived or otherwise not
required as a condition of Closing, by the Final Consent Date with respect to
those consents identified on Schedule 2.07 and within thirty (30) days
following the Closing with respect to all others, Seller shall deliver to Buyer
written confirmation of all consents, approvals, authorizations or orders of
and all registrations, declarations or filings with third parties, including
creditors, contract parties or Governmental Authorities, necessary for the
authorization, execution and delivery of this Agreement by Seller or the
consummation by Seller of the transactions contemplated by this Agreement,
including but not limited to those referred to in Sections 3.17 and 3.18.  Between the Effective Time and the date any
consent, approval, authorization or order is obtained as required by this
Section 6.02, subject to the terms of the applicable agreement and to the extent
permitted by law, the Parties will use their Best Efforts to (a) provide
to Buyer the benefits of the applicable agreement, (b) relieve Seller of
the performance obligations of the applicable agreement, to the extent
possible, (c) cooperate in any reasonable and lawful arrangement designed
to provide the benefits to Buyer, including entering into subcontracts for
performance, and (d) enforce at the request and sole expense of Buyer and
for the account of Buyer any rights of Seller arising from any such agreement
(including the right to elect to terminate such agreement in accordance with
the terms thereof upon the request of Buyer).

Section
6.03.  Litigation Agreement.  In the event, and for so long as, any Party
actively is contesting or defending against any action, suit, proceeding,
hearing, investigation, charge, complaint, claim or demand (other than against
the other Party) in connection with (i) any

 20
 

 

transaction contemplated under this Agreement or
(ii) any fact, situation, circumstance, status, condition, activity,
practice, plan, occurrence, event, incident, action, failure to act or
transaction on or prior to the Effective Time involving the Business or any of
the Purchased Assets, the other Party will cooperate with the contesting or
defending Party and its counsel in the contest or defense thereof, make
available its personnel and provide such testimony and access to its books and
records as shall be reasonably necessary in connection with the contest or
defense thereof, all at the sole cost and expense of the contesting or defending
Party (unless the contesting or defending Party is entitled to indemnification
therefor under Section 8.02 hereof).

Section
6.04.  Transition.  Seller will not take any action that is
designed or intended to have the effect of discouraging any licensor, customer,
supplier or other business associate from maintaining the same business
relationships with Buyer after the Effective Time as such party maintained with
Seller prior to the Effective Time. 
Seller will refer all customer inquiries relating to the Business to
Buyer from and after the Effective Time. 
Buyer and Seller shall each use their Best Efforts to cooperate with the
other, and to cause their respective employees to act accordingly, in order to
fulfill the intent and purpose of this Agreement.

Section 6.05. 
Confidentiality.

(a)           Seller will treat and hold as
confidential all of the Confidential Information, refrain from using any of the
Confidential Information except in connection with this Agreement and deliver
promptly to Buyer or destroy, at the request and option of Buyer, all tangible
embodiments (and all copies) of the Confidential Information which are in its
possession.  In the event that Seller is
requested or required (by oral question or request for information or documents
in any legal proceeding, interrogatory, subpoena, civil investigative demand or
similar process) to disclose any Confidential Information, Seller will notify
Buyer promptly of the request or requirement so that Buyer may seek an
appropriate protective order or waive compliance with the provisions of this
Section 6.05.  If, in the absence of a
protective order or the receipt of a waiver hereunder, Seller is, on the advice
of counsel, compelled to disclose any Confidential Information, Seller may
disclose the Confidential Information; provided, however, that Seller shall use
its Best Efforts to obtain, at the request and expense of Buyer, an order or
other assurance that confidential treatment will be accorded to such portion of
the Confidential Information required to be disclosed as Buyer shall designate.

(b)           Buyer and Seller each acknowledge
that: (i) they are not acting as an advisor to any other party and will
not receive any amount that could be construed as a “minimum fee” within the
meaning of Treas. Reg. §1.6011-4(b)(3) (or any successor thereto); and
(ii) notwithstanding any provision to the contrary set forth in this
Agreement or the Mutual Non-Disclosure Agreement between DTN Holding Company,
LLC and its affiliates and Quixote, dated May 19, 2005, as amended (the “Non-Disclosure
Agreement”), no Party is under any obligation to the other to keep confidential
the tax treatment or tax structure of the transactions contemplated by this
Agreement.

 21
 

 

Section 6.06. 
Noncompetition/Nonsolicitation.

(a)           Except as set forth in the Product
Marketing Agreement and the Employee Leasing Agreement, in consideration of the
promises contained herein and the consideration to be received hereunder,
Seller shall not, from and after the Closing until the date which is five (5)
years from the Closing Date (the “Restricted Period”), directly or indirectly
(including, but not limited to actions taken by or through its parent,
Quixote), own, manage, control, participate in, consult with, or render
services for, whether as an agent, employee, consultant, advisor, stockholder,
member, partner or joint venturer, or in any manner engage in any business that
competes with the Business within the Restricted Territory or solicit, divert,
take away or attempt to take away any of the customers of the Business or
interfere with or attempt to interfere with any then existing relationship
between Buyer and any of its customers, suppliers or other Persons with whom it
deals.  For purposes of this Section
6.06, the “Restricted Territory” shall mean the United States and Canada.  Notwithstanding any provision of this
Agreement to the contrary, Seller may bid on and fulfill any projects that
include weather forecasting services when combined with equipment, software and/or
maintenance services to be provided by Seller, so long as Seller relies on a
third-party provider for the weather forecasting portion of such contracts;
provided, however, that Buyer shall have a first priority right to bid on and
fulfill any such weather forecasting services to be provided under such
contracts on terms and conditions no less favorable than those formally offered
by such prospective third-party provider. 
Buyer’s decision to bid on or fulfill such projects shall be made
promptly and in a timely fashion as determined by the nature of the procurement
process for each such opportunity.

(b)           During the Restricted Period, Seller
shall not, directly or indirectly, hire or solicit to hire any employee of
Buyer or induce or attempt to induce any such employee to leave his or her
employment with Buyer after the Closing.

(c)           It is the desire and intent of the
parties that the provisions of this Section 6.06 be enforced to the fullest
extent permissible under applicable laws and public policies applied in each
jurisdiction in which enforcement is sought. 
Accordingly, if any particular provision of this Section 6.06 shall be
adjudicated to be invalid or unenforceable, such provision shall be deemed
amended to the extent necessary in order that such provision be valid and
enforceable, such amendment to apply only with respect to the operation of such
provision of this Section 6.06 in the particular jurisdiction in which such
adjudication is made.

Section 6.07. 
Access to Records After the Closing.

(a)           After the Closing, upon reasonable
prior notice, Buyer and its representatives shall be permitted reasonable
access, during normal business hours, to and to make inspection of Seller’s
books and records regarding the Business and the Purchased Assets, so long as
such records are maintained by Seller in accordance with its customary records
retention policy, and to make copies thereof as reasonably necessary to allow
Buyer to obtain information in Seller’s possession regarding the Business and
the Purchased Assets (but excluding attorney work product or other privileged

 22
 

 

communications).  Buyer shall pay Seller’s reasonable
out-of-pocket costs and expenses in connection with satisfying such
requests.  Seller shall provide Buyer
with at least thirty (30) days written notice prior to the destruction of
any books and records pertaining to the Business and the Purchased Assets, and
Buyer shall have the option of taking possession of any such books and records,
at its sole expense, prior to the expiration of such thirty (30) day
period.

(b)           After the Closing, upon reasonable
prior notice, Seller and its representatives shall be permitted reasonable
access, during normal business hours, to and to make inspection of Buyer’s
books and records regarding the Purchased Assets, so long as such records are
maintained by Buyer in accordance with its customary records retention policy,
and to make copies thereof as reasonably necessary to allow Seller to obtain
information in Buyer’s possession regarding the Purchased Assets (but excluding
attorney work product or other privileged communications) for the limited
purposes of preparing Seller’s books and records (including Tax Returns)
relating to the Purchased Assets.  Seller
shall pay Buyer’s reasonable out-of-pocket costs and expenses in connection
with satisfying such requests.

Section 6.08. 
RWIS Data Access.  From the Closing Date and until April 30,
2007, Seller will cooperate and assist Buyer in acquiring any roadway
information sensor data (“RWIS Data”) from any Customer or customer of Seller
being provided services by Buyer pursuant to a Subcontract (a “Subcontract
Customer”) that, despite its commercially reasonable efforts, Buyer is unable
to obtain directly from such Customer or Subcontract Customer.  To the extent it is contractually or legally
permitted to do so, Seller will provide Buyer with access to the RWIS Data in
the most expedient manner possible. 
Buyer shall be responsible for payment of any reasonable transmission or
hardware costs incurred in connection with the acquisition of such RWIS Data.

ARTICLE
VII

CONDITIONS TO CLOSING

Section
7.01.  Conditions to Obligation of Buyer.  The obligation of Buyer to consummate the
Closing under this Agreement is subject to the satisfaction of all of the
following conditions, compliance with which, or the occurrence of which, may be
waived in writing by Buyer in its sole discretion.

(a)           Accuracy of
Representations.  All of
the representations and warranties of Seller in this Agreement (considered
collectively), and each of these representations and warranties (considered
individually), shall have been accurate in all material respects as of the date
of this Agreement, and shall be accurate in all material respects as of the
time of the Closing as if then made, without giving effect to any supplement to
the Disclosure Schedules, except that those representations and warranties that
are qualified by terms such as “material” or “Material Adverse Effect” shall be
true and correct in all respects.  On the
Closing Date, Seller shall have delivered to Buyer a certificate, dated as of
the Closing Date and signed by an executive officer of Seller, as to the
matters set forth in this Section.

 23
 

 

(b)           Seller’s Performance.  All of the covenants and obligations
that Seller is required to perform or to comply with pursuant to this Agreement
at or prior to the Closing (considered collectively), and each of these
covenants and obligations (considered individually), shall have been duly
performed and complied with in all material respects.  On the Closing Date, Seller shall have delivered
to Buyer a certificate, dated as of the Closing Date and signed by an executive
officer of Seller, as to the matters set forth in this Section.

(c)           [Intentionally omitted]

(d)           Officer’s Certificate.  Seller shall have delivered to Buyer a
certificate of an executive officer of Seller, dated as of the Closing Date,
certifying as to the articles of incorporation and bylaws of Seller and to the
resolutions of Seller’s Board of Directors and sole shareholder authorizing the
execution, delivery and performance of this Agreement and the related
agreements.

(e)           Opinion of Counsel.  Seller shall have delivered to Buyer an
opinion of its General Counsel, substantially in the form attached hereto as
Exhibit D.

(f)            Delivery of Financial
Statements.  Seller shall
have delivered to Buyer the Financial Statements referenced in
Section 3.14.

(g)           Delivery of Employee
Leasing Agreement.  Seller
shall have executed and delivered to Buyer the Employee Leasing Agreement
referred to in Section 5.02.

(h)           Delivery of Product Marketing
Agreement.  QTT shall have
executed and delivered to Buyer the Product Marketing Agreement referred to in
Section 5.03.

(i)            [Intentionally omitted]

(j)            No Material Adverse Change.  Since December 31, 2005, there shall not
have been adverse changes in the business, operations, financial position or
assets of the Business which would have, individually or in the aggregate, a
Material Adverse Effect.

(k)           Due Diligence.  Buyer shall have completed its due diligence
as described in Section 5.09 hereof, and the results of such due diligence
shall be satisfactory to Buyer, in its sole discretion.

(l)            Legality; Governmental
Authorization.  The
acquisition of the Purchased Assets and the consummation of the other
transactions contemplated hereby shall not be enjoined or prohibited by any
applicable law.

(m)          Litigation.  No action, suit or proceeding shall be
pending before any court or quasi-judicial or administrative agency of any
federal, state, local or foreign jurisdiction or before any arbitrator wherein
an unfavorable injunction, judgment, order, decree, ruling or charge would
(i) prevent consummation of any of the transactions contemplated by this
Agreement, (ii) cause any of the transactions contemplated by this
Agreement to be rescinded following consummation or (iii) affect adversely
the right of

 24
 

 

Buyer to own the
Purchased Assets or assume the Customer Contracts and Other Agreements as
contemplated herein (and no such injunction, judgment, order, decree, ruling,
or charge shall be in effect).

(n)           Certificate of Good
Standing.  Seller shall
have delivered to Buyer a certificate of good standing for Seller issued by the
Secretary of State of the State of Missouri as of a date reasonably close to
the Closing Date.

(o)           Board of Directors
Approval.  The acquisition
of the Purchased Assets and the consummation of the other transactions
contemplated hereby shall have been approved by the Board of Directors of
Buyer.

(p)           Bill of Sale, Assignments
and Transfers; Lien Releases. 
Seller shall have executed and delivered to Buyer a Bill of Sale,
Assignment and Assumption Agreement (the “Bill of Sale”) with respect to the
Purchased Assets, substantially in the form of Exhibit E hereto, effective
as of the Effective Time, and such other good and sufficient bills of sale and
other instruments of transfer as shall be necessary to assign and transfer to
and vest in Buyer good and valid title to all of the Purchased Assets, free and
clear of any and all liabilities, liens, claims, rights, restrictions on
transfer and encumbrances except any Permitted Liens, and shall have delivered
to Buyer a release of any encumbrances on the Purchased Assets, including but
not limited to those identified on Schedule 3.16 but excluding any
Permitted Liens, effective as of the Effective Time.

(q)           Other Documents.  Seller shall have delivered to Buyer all
other documents reasonably requested by Buyer and contemplated by this
Agreement or required to be delivered by Seller to Buyer pursuant to this
Agreement and not previously delivered.

Section
7.02.  Conditions to Obligation of Seller.  The obligations of Seller to consummate the
Closing under this Agreement are subject to the satisfaction of all of the
following conditions, compliance with which, or the occurrence of which, may be
waived in writing by Seller in its sole discretion.

(a)           Accuracy of
Representations.  All of
Buyer’s representations and warranties in this Agreement (considered
collectively), and each of these representations and warranties (considered
individually), shall have been accurate in all material respects as of the date
of this Agreement, and shall be accurate in all material respects as of the
time of the Closing as if then made, except that those representations and
warranties that are qualified by terms such as “material” or “Material Adverse
Effect” shall be true and correct in all respects.

(b)           Buyer’s Performance.  All of the covenants and obligations
Buyer is required to perform or to comply with pursuant to this Agreement at or
prior to the Closing (considered collectively), and each of these covenants and
obligations (considered individually), shall have been duly performed and
complied with in all material respects.

 25
 

 

(c)           Legality; Governmental
Authorization; Litigation. 
The acquisition of the Purchased Assets and the consummation of the
other transactions contemplated hereby shall not be enjoined or prohibited by
any applicable law.  No action, suit or
proceeding shall be pending before any court or quasi-judicial or administrative
agency of any federal, state, local or foreign jurisdiction or before any
arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling
or charge would (i) prevent consummation of any of the transactions
contemplated by this Agreement, (ii) cause any of the transactions
contemplated by this Agreement to be rescinded following consummation or
(iii) affect adversely the right of Buyer to own the Purchased Assets or
assume the Customer Contracts and Other Agreements as contemplated herein (and
no such injunction, judgment, order, decree, ruling or charge shall be in
effect).

(d)           Delivery of Employee
Leasing Agreement.  Buyer
shall have executed and delivered to Seller the Employee Leasing Agreement
referred to in Section 5.02.

(e)           Delivery of Product
Marketing Agreement.  Buyer
shall have executed and delivered to QTT the Product Marketing Agreement
referred to in Section 5.03.

(f)            [Intentionally omitted]

(g)           Bill of Sale.  Buyer shall have delivered to Seller the Bill
of Sale referred to in Section 7.01(p), effective as of the Effective
Time.

(h)           Purchase Price.  Buyer shall have paid the Closing Payment to
Seller pursuant to Section 2.06(a) hereof.

(i)            Other Documents.  Buyer shall have delivered to Seller all
other documents reasonably requested by Seller and contemplated by this
Agreement or required to be delivered by Buyer to Seller pursuant to this
Agreement and not previously delivered.

ARTICLE
VIII

SURVIVAL AND INDEMNIFICATION

Section
8.01.  Survival.  The representations and warranties of the
Parties contained in this Agreement, any related agreement or in any
certificate delivered pursuant hereto, and any covenants and obligations of the
Parties contained in this Agreement, any related agreement or in any
certificate delivered pursuant hereto which are to be performed prior to the
Closing, shall survive the Closing for a period of eighteen (18) months, except
for those relating to Sections 3.01, 3.02, 3.13, 3.16 and 3.21 which will
survive until the one hundred eighty (180) days following the expiration
of the applicable statute of limitation. 
The covenants and obligations of the Parties contained in this
Agreement, any related agreement or in any certificate delivered pursuant
hereto which are to be performed after the Closing shall survive the Closing
indefinitely.

 26
 

 

Section 8.02. 
Indemnification.

(a)           Subject to the limitations set forth
herein, Seller hereby agrees to indemnify Buyer against, and agree to hold
Buyer harmless from, any loss, liabilities, fines, penalties or assessments
incurred or suffered by Buyer arising out of:

(i)            the failure of Seller to satisfy,
discharge or pay any Liability related to the Purchased Assets or the Business
which was incurred or accrued prior to the Effective Time, or which was
incurred or accrued after the Effective Time in connection with or related to
the Purchased Assets or the Business prior to the Effective Time;

(ii)           Seller’s operation or conduct of the
Business and/or ownership or use of the Purchased Assets prior to the Effective
Time;

(iii)          any misrepresentation or breach of
warranty by Seller in this Agreement or in any certificate delivered hereunder
or any breach of covenant or agreement made or to be performed by Seller
pursuant to this Agreement;

(iv)          any claim or litigation involving
Seller that is pending as of the Effective Time with respect to the Purchased
Assets or the Business or that arises out of the conduct of the Business by
Seller prior to the Effective Time; and

(v)           any claim or litigation related to
the employment practices of Seller prior to the Effective Time or any
individual’s employment by or with Seller or the termination of such employment
by Seller;

(vi)          the failure to file any Tax Returns
and/or the failure to pay any Taxes incurred or arising prior to or as of the
Effective Time or incurred or accrued after the Effective Time in connection
with or relating to the Business and/or the Purchased Assets prior to the
Effective Time, including but not limited to those identified on Schedule 3.13.

(b)           Buyer
hereby indemnifies Seller against, and agrees to hold Seller harmless from, any
loss incurred or suffered by Seller arising out of:

(i)            the failure of Buyer to satisfy or
discharge any Forward Looking Obligation;

(ii)           any misrepresentation or breach of
warranty by Buyer in this Agreement or in any certificate delivered hereunder
or any breach of covenant or agreement made or to be performed by Buyer
pursuant to this Agreement; and

(iii)          any claim or litigation arising out of
Buyer’s operation of the Business and/or ownership or use of the Purchased Assets
after the Effective Time.

 27
 

 

Section
8.03.  Time Limitation on Indemnification.  Except for claims relating to
Sections 3.01, 3.02, 3.13, 3.16 and 3.21 and claims relating to covenants
and obligations contained in this Agreement which are to be performed after the
Closing, no claim may be made and no suit may be instituted by Buyer or Seller
under Sections 8.02(a)(iii) or 8.02(b)(ii) of this Agreement after eighteen
(18) months from the Effective Time.  In
regard to all other claims relating to this Agreement, including, but not
limited to claims relating to Sections 3.01, 3.02, 3.13, 3.16 and 3.21 and
claims relating to covenants and obligations contained in this Agreement, such
claims may be made or suit instituted by Buyer or Seller only until one hundred
eighty (180) days following the expiration of the applicable statute of
limitation.

Section
8.04.  Third Party Claims, Etc.  Promptly after the receipt by any Indemnitee
of a notice of the commencement of any action or other claim against an
Indemnitee by a third party, an Indemnitee shall, if a claim with respect
thereto is or may be made by the Indemnitee against any Indemnifying Party
pursuant to this Article VIII, give such Indemnifying Party written notice
of the nature and basis of such claim, but the failure to notify an
Indemnifying Party will not relieve the Indemnifying Party of any Liability
that it may have to any Indemnitee, except to the extent that the Indemnifying
Party demonstrates that the defense of such action is prejudiced by the Indemnitee’s
failure to give such notice.  Prior to
the assumption by the Indemnifying Party of the defense of such claim as
described in the next sentence, the Indemnitee will defend against such claim
(provided that the Indemnitee may not settle such claim).  The Indemnifying Party shall have the right
to defend such claim, at the Indemnifying Party’s expense and with counsel of
its choice, which counsel is reasonably satisfactory to the Indemnitee.  So long as the Indemnifying Party is
conducting the defense of such claim as provided in the immediately preceding
sentence, the Indemnitee may retain separate co-counsel at its sole cost and
expense and may participate in defense of such claim.  Provided, however, if there is or may be a
conflict of interest between the Indemnifying Party and the Indemnitee, the
Indemnitee may retain separate counsel at the cost and expense of the
Indemnifying Party.  In the event the
Indemnifying Party does not assume defense of such claim as so provided, the
Indemnitee may defend against such at the Indemnifying Party’s cost and
expense.  Regardless of which party shall
assume the defense of such claim, each party shall provide to the other party
on request all information and documentation reasonably necessary to defend
such claim and shall provide reasonable access to all books, records and
personnel in its possession or under its control which would have a bearing on
the defense of such claim.  For purposes
of this Section, “Indemnitee” shall mean the party seeking indemnification
under this Article VIII, and “Indemnifying Party” shall mean the party
from whom indemnification is sought under this Article VIII.

Section 8.05. 
Certain Other Indemnity Matters.

(a)           Upon making any payment to an
Indemnitee for any indemnification claim pursuant to this Article VIII,
the Indemnifying Party shall be subrogated, to the extent of such payment, to
any rights which the Indemnitee may have against other Persons with respect to
the subject matter underlying such indemnification claim.

(b)           If after an indemnification payment
is made hereunder, the Party to which such payment is made receives insurance
proceeds in respect of the loss, such amount shall promptly be remitted to the
Indemnifying Party.

 

 28

 

(c)           Notwithstanding the foregoing, except
as provided by Section 8.02(a)(i), 8.02(a)(iv), 8.02(a)(v) and 8.02(a)(vi), the
Seller shall have no obligation to indemnify Buyer with respect to any breach
of a representation or warranty contained herein or in any certificate
delivered by the Seller pursuant hereto unless and until, and only to the
extent that, the aggregate of all such individual losses incurred or sustained
by all Buyer with respect to which Buyer is entitled to indemnification with
respect to such breach of a representation or warranty exceeds $20,000, in
which case the Seller shall only be liable for the amount by which all such
losses exceed such amount and (ii) the aggregate liability of the Seller to
indemnify the Buyer for losses with respect to any breach of a representation
or warranty contained herein or in any certificate delivered by the Seller
pursuant hereto shall in no event exceed the Purchase Price; provided,
that for purposes of determining whether any breach of a representation or
warranty has occurred with respect to a claim for indemnification or for the
purposes of measuring losses, such representations and warranties shall be
deemed to have been made without any materiality, Material Adverse Effect or
similar qualifications and without any dollar thresholds.

ARTICLE
IX

TERMINATION

Section
9.01.  Termination Events.  Subject to the provisions of
Section 9.02, this Agreement may, by written notice given at or prior to
the Closing Date in the manner hereinafter provided, be terminated and
abandoned only as follows:

(a)           By Seller upon written notice, if a
material default or breach shall be made by Buyer with respect to the due and
timely performance of any of Buyer’s covenants and agreements contained herein,
or with respect to the due compliance with any of Buyer’s representations and
warranties contained in Article IV, and such default cannot be cured prior to
the Closing Date and has not been waived;

(b)           By Buyer, upon written notice, if a
material default or breach shall be made by Seller with respect to the due and
timely performance of any of its covenants and agreements contained herein, or
with respect to the due compliance with any of the representations and
warranties of Seller contained in Article III, and such default cannot be
cured prior to the Closing Date and has not been waived;

(c)           By Buyer, in the event that any
update, amendment or modification pursuant to the terms of Sections 5.07
and 5.08 hereof reflects or results in a Material Adverse Effect;

(d)           By mutual written consent of Buyer
and Seller; or

(e)           By any Party, without further action
of such Party, if the conditions to such Party’s obligation to consummate the
Closing (as set forth in Article VII) shall not have been satisfied by
close of business on August 31, 2006.

 29
 

 

Section 9.02. 
Effect of Termination. 
In the event this Agreement is terminated pursuant to Section 9.01,
all further rights and obligations of the Parties hereunder shall terminate
without liability on the part of any Party, except that the obligations under
the Non-Disclosure Agreement, shall survive. 
Notwithstanding the foregoing, the rights of the terminating Party to
pursue all legal remedies for the breach of any representation, warranty,
covenant or agreement set forth in this Agreement prior to such termination
shall survive such termination, and the breaching Party shall be fully liable
for any and all damages, costs and expenses sustained or incurred by the
terminating Party as a result of such breach.

ARTICLE
X

MISCELLANEOUS

Section
10.01.  Notices.  All notices, requests and other
communications to any Party hereunder shall be in writing (including facsimile
transmission) and shall be given by registered or certified mail (postage
prepaid, return receipt requested), nationally-recognized overnight delivery
service, or personally delivered to the address provided below or sent by
facsimile transmission (with verification thereof by the sender) to the
facsimile number provided below:

	
  If to Seller:

  	
   

  	
  Surface Systems, Inc.

  
	
   

  	
   

  	
  4021 Stirrup
  Creek Drive, Suite 100

  
	
   

  	
   

  	
  Durham, NC 27703

  
	
   

  	
   

  	
  Attention: Mr.
  Bruce Reimer

  
	
   

  	
   

  	
  Telephone:
  919-433-8263

  
	
   

  	
   

  	
  Facsimile:
  919-361-2948

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
  Quixote Corporation

  
	
   

  	
   

  	
  35 East Wacker,
  Suite 1100

  
	
   

  	
   

  	
  Chicago, IL
  60601

  
	
   

  	
   

  	
  Attention: Ms.
  Joan Riley

  
	
   

  	
   

  	
  Telephone:
  312-705-8410

  
	
   

  	
   

  	
  Facsimile:
  312-467-0197

  
	
   

  	
   

  	
   

  
	
  If to Buyer:

  	
   

  	
  Data Transmission Network Corporation

  
	
   

  	
   

  	
  9110 West Dodge
  Road, Suite 200

  
	
   

  	
   

  	
  Omaha, NE 68114

  
	
   

  	
   

  	
  Attention: Mr.
  Richard Halle

  
	
   

  	
   

  	
  Telephone: (402)
  399-6468

  
	
   

  	
   

  	
  Facsimile: (402)
  882-4500

  

 

 30
 

 

 

	
  with a copy to:

  	
   

  	
  Kutak Rock LLP

  
	
   

  	
   

  	
  1650 Farnam
  Street

  
	
   

  	
   

  	
  Omaha, NE 68102

  
	
   

  	
   

  	
  Attention: Ms.
  Lisa A. Sarver

  
	
   

  	
   

  	
  Telephone: (402)
  346-6000

  
	
   

  	
   

  	
  Facsimile: (402)
  346-1148

  

 

Unless otherwise specified herein, such notices or
other communications shall be deemed received (a) on the date delivered,
if delivered personally, (b) two (2) Business Days after being sent by
Federal Express or other overnight courier of national reputation for next day
delivery, (c) one (1) Business Day after being delivered, if delivered by
facsimile and (d) two (2) Business Days after being sent, if sent by registered
or certified mail.  Any of the Parties
identified above shall be entitled to specify a different address by giving
notice as aforesaid to each of the other Parties identified above.

Section 10.02. 
Amendments and Waivers.

(a)           Any provision of this Agreement may
be amended or waived if, but only if, such amendment or waiver is in writing
and is signed, in the case of an amendment, by each Party to this Agreement, or
in the case of a waiver, by the Party against whom the waiver is to be
effective.

(b)           No failure or delay by any Party in
exercising any right, power or privilege hereunder shall operate as a waiver
thereof nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege.

Section
10.03.  Expenses.  All costs and expenses of whatsoever nature
incurred in connection with this Agreement shall be paid by the Party incurring
such cost or expense.  Seller shall be
responsible for the payment of the costs and expenses of all transfer,
documentary, gross receipts, sales and use taxes and similar liabilities, if
any, resulting from the sale of the Purchased Assets to Buyer and the
consummation of the transactions contemplated by this Agreement, other than
taxes based on Buyer’s income, which taxes shall be the sole responsibility of
Buyer.

Section
10.04.  Successors and Assigns;
Assignment.  The provisions
of this Agreement shall be binding upon and inure to the benefit of the Parties
hereto and their respective successors and assigns, provided that no Party may
assign, delegate or otherwise transfer any of its rights or obligations under
this Agreement without the prior written consent of the other Parties
hereto.  Any other purported assignment
or delegation in contravention of the foregoing shall be null and void.

Section
10.05.  Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Delaware applicable to
contracts made and to be performed entirely within such state.

Section
10.06.  Counterparts; Effectiveness.  This Agreement may be executed and delivered
in any number of counterparts, each of which shall be an original, but all of
which

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together shall constitute one and the same
instrument.  This Agreement may be
executed and delivered via facsimile. 
This Agreement shall become effective when each Party hereto shall have
received a counterpart hereof signed by the other Parties hereto.

Section
10.07.  Entire Agreement; Third Party
Beneficiaries.  This
Agreement, those agreements referred to hereunder and the Non-Disclosure
Agreement constitute the entire agreement between the Parties with respect to
the subject matter hereof and supersede all prior agreements and
understandings, both written and oral, between the Parties with respect to the
subject matter of this Agreement.  The
exhibits and schedules hereto are in integral part hereof and are incorporated
by reference herein for all purposes. 
Where required by context, a reference to a schedule shall be deemed to
refer to such schedule as amended or updated. 
Neither this Agreement nor any provision hereof shall confer upon any
Person other than the Parties hereto any rights or remedies hereunder.

Section
10.08.  Severability.  If any provision of this Agreement or the
application of any such provision to any Person or circumstance shall be held
invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision hereof.

ARTICLE XI

DEFINITIONS

Section 11.01. 
Definitions.

 “Affiliate” means, with respect to any Person, any other
Person that, directly or indirectly through one or more intermediaries,
Controls, is Controlled by or is under common Control with, such Person.  For purposes of this definition, “Control”
(including, with correlative meanings, the terms “Controlled by” and “under common
Control with”) means the possession, directly or indirectly, of the power to
direct or cause the direction of the management or policies of a Person,
whether through Ownership of stock, by contract or credit arrangement or
otherwise.

“Agreement” has
the meaning set forth in the preface of this Agreement.

“Assignment Consent Customer” has
the meaning set forth in Section 2.07 hereof.

“Best Efforts”
are the commercially reasonable efforts that a prudent person desirous of
achieving a result would use in similar circumstances to achieve that result as
expeditiously as possible.

“Bill of Sale”
has the meaning set forth in Section 7.01(p) hereof.

“Business”  has the meaning set forth in the preface of
this Agreement.

“Business Day”
means any day, other than a Saturday or Sunday or any other day on which banks
are required or authorized to close in Omaha, Nebraska.

“Buyer” has the
meaning set forth in the preface of this Agreement.

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“Claims” has the meaning set
forth in Section 2.01(l) hereof.

“Closing” has the
meaning set forth in Section 2.05 hereof.

“Closing Date”
has the meaning set forth in Section 2.05 hereof.

“Closing Payment”
has the meaning set forth in Section 2.06(a) hereof.

 “Code” means the Internal Revenue Code of 1986, as amended.

“Confidential Information”
means any information that is not already generally available to the public
concerning the business and operations of Buyer and Seller and their respective
Affiliates insofar as such information relates to the Purchased Assets and/or
the Business or Seller’s use of such information in connection with the
Purchased Assets and/or the Business, or otherwise relating to this
transaction.  Confidential Information
shall include, without limitation, information relating to business operations
(including customers, suppliers, equipment, services of employees, financial
information or methods of operation), know-how, trade secrets, technical and
economic data, computer programs, systems documentation, designs, procedures,
formulas, improvements, ideas (including patent information), copyrights or
publications of a confidential nature pertaining to a Party, its products and
services or its customers.  Confidential Information shall not include
information which (a) is now, or hereafter becomes, through no act or failure
to act on the part of Seller, generally known or available to the public; (b)
is furnished to others by Buyer without restriction on disclosure; or (c) is
hereafter rightfully furnished to Seller by a third party without, to the
Knowledge of Seller, any breach of any confidentiality obligation to Buyer.

“Consent Customers” has the meaning set forth in Section 2.07
hereof.

“Consent Holdback” has the
meaning set forth in Section 2.06(b) hereof.

“Consent Revenue” has the meaning set forth in Section 2.07
hereof.

“Customers” has
the meaning set forth in Section 2.01(a) hereof.

“Customer Contracts” has the
meaning set forth in Section 2.01(a) hereof.

“Data Bases” has the meaning set
forth in Section 2.01(c) hereof.

“Disclosure Schedules”
has the meaning set forth in the preface to Article III herein.

 “Effective Time” has the meaning set forth in
Section 2.05 hereof.

“Employees” has the meaning set
forth in Section 3.15(d) hereof.

“Employee Benefit Plan” means any
(a) nonqualified deferred compensation or retirement plan or arrangement,
(b) qualified defined contribution retirement plan or arrangement which is
an Employee Pension Benefit Plan, (c) qualified defined benefit retirement
plan or arrangement which is an Employee Pension Benefit Plan (including any
multiemployer pension plan as defined in the Taft-Hartley Act of 1947), or

 33
 

 

(d) Employee Welfare
Benefit Plan or material fringe benefit or other retirement, bonus or incentive
plan or program.

“Employee Leasing Agreement” has
the meaning set forth in Section 5.02 hereof.

“Employee Pension
Benefit Plan” has the meaning set forth in ERISA §3(2).

“Employee Welfare
Benefit Plan” has the meaning set forth in ERISA §3(1).

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

“Excluded Assets”
has the meaning set forth in Section 2.02 herein.

“Excluded Hardware” has the
meaning set forth in Section 2.02(d) hereof.

 “Financial Statements” has the meaning set forth in
Section 3.14 hereof.

“Final Consent Date” has the
meaning set forth in Section 2.06(b)(iv) hereof.

“First Consent Date” has the
meaning set forth in Section 2.06(b)(i) hereof.

“Forward Looking
Obligations” has the meaning set forth in Section 2.03 herein.

“Governmental Authority”
means any branch or agency of government, domestic or foreign, having
jurisdiction over the Parties or the subject matter of this Agreement.

“Hardware” has the meaning set
forth in Section 2.01(e) hereof.

“Income Taxes”
means any federal, state, local or foreign income or franchise taxes or other
taxes imposed on or with respect to net income or capital, together with any
interest or penalties or additions to tax imposed with respect thereto, and any
obligations under any arrangements with respect to any Income Taxes.

“Income Tax Returns”
means any federal, state, local or foreign Tax Returns required to be filed
with any Taxing Authority that pertains to Income Taxes.

“Indemnifying Party”
has the meaning set forth in Section 8.04 hereof.

“Indemnitee” has
the meaning set forth in Section 8.04 hereof.

“IP Rights” has the meaning set
forth in Section 2.01(d) hereof.

“Knowledge”
means the actual knowledge of such party or, in the case of an entity, the
officers of such party with responsibility for the matter in question after
reasonable investigation.

 “Liability” means any liability (whether known or unknown,
whether asserted or unasserted, whether absolute or contingent, whether accrued
or unaccrued, whether liquidated or unliquidated, and whether due or to become
due), including but not limited to any liability for Taxes.

 34
 

 

“Material Adverse Effect”
means any consequence, individually or in the aggregate, which has a material
and adverse impact on the financial position, assets, liabilities, business or
results of operations of Buyer, Seller, the Business and/or the Purchased
Assets or which materially affects the ability of either Party to perform its
obligations under this Agreement or to consummate the transactions contemplated
by this Agreement.  Without limiting the
generality of the foregoing, any change in the financial position, assets,
liabilities, business or results of operations which results in a loss in
excess of $10,000 shall be conclusively presumed to have a Material Adverse
Effect.

“Non-Consenting Customer” has the
meaning set forth in Section 2.07 hereof.

 “Ordinary Course of Business” means the ordinary course of
business consistent with past custom and practice (including with respect to
quantity and frequency).

“Other Agreements” has the
meaning set forth in Section 2.01(h) hereof.

“Other Equipment” has the meaning
set forth in Section 2.01(f) hereof.

 “Party” and “Parties” have
the meaning set forth in the preface to this Agreement.

“Permits” has the meaning set
forth in Section 2.01(j) hereof.

“Permitted Liens”
means liens for Taxes not yet due and payable.

“Person” means
an individual, a partnership, a corporation, a limited liability company, an
association, a joint stock company, a trust, a joint venture, an unincorporated
organization or a governmental entity (or any department, agency or political
subdivision thereof).

“Prepaid Fees” has the meaning
set forth in Section 2.04 hereof.

“Product Marketing Agreement” has
the meaning set forth in Section 5.03 hereof.

“Proposals” has the meaning set
forth in Section 2.01(a) hereof.

 “Purchased Assets” has the meaning set forth in
Section 2.01 hereof.  Purchased
Assets shall not include any other asset other that those described above and,
specifically, shall not include (i) the Excluded Assets, (ii) the
organizational documents, qualifications to conduct business as a foreign
corporation, arrangements with registered agents relating to foreign
qualifications, taxpayer and other identification numbers, seals, minute books,
shareholder records, and other documents relating to the organization, maintenance
and existence of Seller as a corporation or (iii) any of the rights of
Seller under this Agreement.

“Purchase Price”
has the meaning set forth in Section 2.04 hereof.

“QTT” has the meaning set forth
in Section 5.03 hereof.

“Quixote” has the meaning set
forth in Section 3.01 hereof.

 “Restricted
Period” has the meaning set forth in Section 6.06(a) hereof.

 35
 

 

“Restricted Territory” has the
meaning set forth in Section 6.06(a) hereof.

“RWIS Data” has the meaning set
forth in Section 6.08 hereof.

“Second Consent Date” has the
meaning set forth in Section 2.06(b)(ii) hereof.

 “Security Interest” means any lien, pledge, encumbrance,
charge or other security interest, other than (a) mechanic’s, materialmen’s,
and similar liens, (b) liens for Taxes not yet due and payable or for
Taxes that the taxpayer is contesting in good faith through appropriate
proceedings, and (c) other liens which secure the performance of Forward
Looking Obligations.

 “Seller” has the meaning set forth in the preface of this
Agreement.

“Self-Help Code” means any back
door, time bomb, drop dead device, or other software routine designed to
disable a computer program automatically with the passage of time or under the
positive control of a party other than the owner or authorized user of the
system.

“Software and Licenses”
has the meaning set forth in Section 2.01(b) hereof.

“St. Louise Facility” has the
meaning set forth in Section 3.11 hereof.

“St. Louis Real Estate Lease” has
the meaning set forth in Section 3.11 hereof.

“Storm Beacon Customers” has the
meaning set forth in Section 2.02(c) hereof.

“Subcontract” has the meaning set
forth in Section 5.04 hereof.

“Subcontract Consent Customer”
has the meaning set forth in Section 2.07 hereof.

“Subcontract Customer” has the
meaning set forth in Section 6.08 hereof.

“Supplies” has the meaning set
forth in Section 2.01(g) hereof.

 “Tax” or “Taxes” means
without limitation, any federal, state, local, foreign or other net income,
gross income, gross receipts, license, lease, payroll, employment, excise,
severance, stamp, occupation, premium, ad valorem, windfall profits,
environmental (including taxes under Section 59A of the Code), customs
duties, capital stock, franchise, service, service use, profits, withholding,
social security (or similar), unemployment, disability, real property, customs
duties, personal property, sales, use, transfer, registration, value added,
alternative or add-on minimum, estimated or other tax of any kind whatsoever,
including any interest, penalty or addition thereto, whether disputed or not;
and any obligations under any agreements or arrangements with respect to any
Taxes described herein.

“Taxing Authority”
means any Governmental Authority, domestic or foreign, having jurisdiction over
the assessment, determination, collection or other imposition of Taxes.

“Tax Returns”
means any returns, declarations, reports, information returns, claims for
refund, forms, statements or other documents (including any related or
supporting information or

 36
 

 

schedules and any amendment thereof) required to be
filed with any Taxing Authority in respect of any Taxes.

“Third Consent Date” has the
meaning set forth in Section 2.06(b)(iii) hereof.

“Transaction Proposals”
has the meaning set forth in Section 5.06 hereof.

“Unauthorized Code” means any
virus, Trojan horse, worm, or other software routines or hardware components
designed to permit unauthorized access; to disable, erase, or otherwise harm
software, hardware, or data; or to perform any other similar actions.

“Unrelated Assets” has the meaning
set forth in Section 2.02(h) hereof.

“Warranties” has the meaning set
forth in Section 2.01(k) hereof.

{SIGNATURE PAGE
FOLLOWS}

 37
 

 

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

	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  DATA TRANSMISSION NETWORK

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Richard G. Halle

  	
   

  
	
   

  	
   

  	
  Richard G. Hallé, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  SURFACE SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By 

  	
  /s/ Bruce Reimer

  	
   

  
	
   

  	
   

  	
  Bruce Reimer, Executive Vice President

  
					

 

 38

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