Document:

exv10w3

Exhibit 10.3

STOCK PURCHASE AGREEMENT

BY AND AMONG

SARGENT TRUCKING, INC.

BIG ROCK TRANSPORTATION, INC.

MIDWEST CARRIERS, INC.

SMITH TRUCK BROKERS, INC.

B & J TRANSPORTATION, INC.

THE SELLERS LISTED HEREIN

AND

SARGENT TRANSPORTATION GROUP, INC.

DATED AS OF OCTOBER 4, 2006

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I PURCHASE AND SALE OF STOCK	 	 	1	 
	1.1
	 	Stock Purchase	 	 	1	 
	1.2
	 	Purchase Price	 	 	1	 
	1.3
	 	Closing Transactions	 	 	1	 
	1.4
	 	Contingent Payments	 	 	3	 
	1.5
	 	Payment and Cancellation of Certain Accounts	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE II [RESERVED]	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE III [RESERVED]	 	 	6	 
	 
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES CONCERNING THE ACQUIRED ENTITIES	 	 	6	 
	4.1
	 	Organization	 	 	6	 
	4.2
	 	Authorization	 	 	6	 
	4.3
	 	Capitalization	 	 	7	 
	4.4
	 	Subsidiaries	 	 	7	 
	4.5
	 	Absence of Conflicts	 	 	7	 
	4.6
	 	Financial Statements	 	 	7	 
	4.7
	 	Absence of Undisclosed Liabilities	 	 	8	 
	4.8
	 	Absence of Certain Developments	 	 	8	 
	4.9
	 	Real and Personal Property	 	 	9	 
	4.10
	 	Accounts Receivable	 	 	10	 
	4.11
	 	Taxes	 	 	11	 
	4.12
	 	Contracts and Commitments	 	 	12	 
	4.13
	 	Proprietary Rights	 	 	14	 
	4.14
	 	Litigation; Proceedings	 	 	15	 
	4.15
	 	Brokerage	 	 	15	 
	4.16
	 	Permits	 	 	15	 
	4.17
	 	Employee Benefit Plans	 	 	15	 
	4.18
	 	Insurance	 	 	17	 
	4.19
	 	Officers and Directors; Bank Accounts	 	 	17	 
	4.20
	 	Affiliate Transactions	 	 	17	 
	4.21
	 	Compliance with Laws	 	 	17	 
	4.22
	 	Environmental and Safety Matters	 	 	17	 
	4.23
	 	[Reserved]	 	 	19	 
	4.24
	 	Employees	 	 	19	 
	4.25
	 	Powers of Attorney	 	 	19	 
	4.26
	 	Indebtedness	 	 	20	 
	4.27
	 	Customers and Suppliers	 	 	20	 
	4.28
	 	Cash	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES WITH RESPECT TO SELLERS	 	 	20	 
	5.1
	 	Residency	 	 	21	 
	5.2
	 	Authorization	 	 	21	 
	5.3
	 	Absence of Conflicts	 	 	21	 
	5.4
	 	Brokerage	 	 	21	 
	5.5
	 	Securities	 	 	21	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	5.6
	 	Litigation	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER	 	 	22	 
	6.1
	 	Organization	 	 	22	 
	6.2
	 	Authorization	 	 	22	 
	6.3
	 	Absence of Conflicts	 	 	22	 
	6.4
	 	Litigation	 	 	22	 
	6.5
	 	Brokerage	 	 	22	 
	6.6
	 	Securities Matters	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE VII [Reserved]	 	 	23	 
	 
	 	 	 	 	 	 
	ARTICLE VIII INDEMNIFICATION AND RELATED MATTERS	 	 	23	 
	8.1
	 	Survival	 	 	23	 
	8.2
	 	Indemnification	 	 	23	 
	8.3
	 	[Reserved]	 	 	27	 
	8.4
	 	Exclusive Remedy	 	 	27	 
	8.5
	 	Limitation on Special or Punitive Damages	 	 	27	 
	8.6
	 	Subrogation	 	 	28	 
	8.7
	 	Indemnity Payments as Purchase Price Adjustments	 	 	28	 
	 
	 	 	 	 	 	 
	ARTICLE IX ADDITIONAL AGREEMENTS	 	 	28	 
	9.1
	 	Tax Matters	 	 	28	 
	9.2
	 	Press Releases and Announcements	 	 	30	 
	9.3
	 	Further Transfers	 	 	30	 
	9.4
	 	Specific Performance	 	 	30	 
	9.5
	 	Investigation and Confidentiality	 	 	30	 
	9.6
	 	Expenses	 	 	31	 
	9.7
	 	Submission to Jurisdiction; Waiver of Jury Trial	 	 	31	 
	9.8
	 	Books and Records	 	 	31	 
	9.9
	 	Reserved	 	 	32	 
	9.10
	 	Non-Compete; Non-Solicitation	 	 	32	 
	9.11
	 	Directors and Officers Indemnification	 	 	33	 
	9.12
	 	Contingent Payment Covenants	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE X MISCELLANEOUS	 	 	35	 
	10.1
	 	Amendment and Waiver	 	 	35	 
	10.2
	 	Notices	 	 	35	 
	10.3
	 	Binding Agreement; Assignment	 	 	36	 
	10.4
	 	Severability	 	 	36	 
	10.5
	 	Construction	 	 	36	 
	10.6
	 	Captions	 	 	37	 
	10.7
	 	Entire Agreement	 	 	37	 
	10.8
	 	Counterparts	 	 	37	 
	10.9
	 	Governing Law	 	 	37	 
	10.10
	 	Parties in Interest	 	 	37	 
	10.11
	 	Knowledge	 	 	37	 
	 
	 	 	 	 	 	 
	ARTICLE XI Definitions	 	 	38	 
	11.1
	 	Certain Definitions	 	 	38	 
	11.2
	 	Terms Defined Elsewhere in this Agreement	 	 	41	 

ii

 

	 	 	 
	INDEX OF EXHIBITS
	Exhibit A
	 	Form of Sargent Note
	Exhibit B
	 	Form of Tweedie Note
	Exhibit C
	 	Form of Stock Power
	Exhibit D
	 	Form of Employment Agreement (Sargent)
	Exhibit E
	 	Form of Employment Agreement (Tweedie)
	Exhibit F
	 	Form 8883 Methodologies

	 	 	 
	INDEX OF SCHEDULES
	Schedule 1.1
	 	Securities Ownership
	Schedule 1.3(b)(ii)
	 	Wire Transfer Instructions
	Schedule 1.3(b)(viii)
	 	Required Consents and Approvals
	Schedule 4.1
	 	Foreign Qualifications
	Schedule 4.3
	 	Capitalization
	Schedule 4.5
	 	Absence of Conflicts
	Schedule 4.6(a)
	 	Financial Statements
	Schedule 4.6(b)
	 	GAAP Exceptions
	Schedule 4.7
	 	Undisclosed Liabilities
	Schedule 4.8
	 	Absence of Certain Developments
	Schedule 4.9(a)
	 	Owned Real Property
	Schedule 4.9(b)
	 	Leased Real Property
	Schedule 4.9(c)
	 	Exceptions to Condition of Improvements
	Schedule 4.9(d)
	 	Title / Encumbrances
	Schedule 4.10
	 	Accounts Receivable
	Schedule 4.11
	 	Taxes
	Schedule 4.11(f)
	 	State Elections
	Schedule 4.12(a)
	 	Material Contracts
	Schedule 4.12(c)
	 	Material Contracts Exceptions
	Schedule 4.13(a)
	 	Proprietary Rights
	Schedule 4.13(b)
	 	Proprietary Rights Exceptions
	Schedule 4.14
	 	Litigation
	Schedule 4.15
	 	Brokerage
	Schedule 4.16
	 	Permits
	Schedule 4.17
	 	Employee Benefit Plans
	Schedule 4.17(d)
	 	Benefit Plan Liabilities
	Schedule 4.18
	 	Insurance
	Schedule 4.19
	 	Officers and Directors; Bank Accounts
	Schedule 4.20
	 	Affiliate Transactions
	Schedule 4.21
	 	Compliance with Laws
	Schedule 4.22
	 	Environmental and Safety Matters
	Schedule 4.24
	 	Employees
	Schedule 4.27(a)
	 	Independent Contractors
	Schedule 4.27(b)
	 	Customers
	Schedule 4.27(c)
	 	Third-Party Carriers
	Schedule 4.27(d)
	 	Agents
	Schedule 4.28
	 	Cash Distributions
	Schedule 6.3
	 	Absence of Buyer Conflicts
	Schedule 9.1(e)
	 	Fuel Tax Agreements
	Schedule 9.11
	 	D&O Policy
	Schedule 9.12(b)(ii)
	 	Thayer Advisory Agreement
	Schedule 11.1(a)
	 	Certain Permitted Indebtedness

iii

 

	 	 	 
	Schedule 11.1(b)
	 	Transaction Bonuses

iv

 

STOCK PURCHASE AGREEMENT

     This Stock Purchase Agreement (the “Agreement”) is made as of October 4, 2006, by and
among (i) Sargent Trucking, Inc., a Maine corporation, (ii) Big Rock Transportation, Inc., an
Indiana corporation, (iii) Midwest Carriers, Inc., an Indiana corporation, (iv) Smith Truck
Brokers, Inc., a Maine corporation, (v) B & J Transportation, Inc., a Maine corporation (together
with each of the entities named in the foregoing clauses (i) through (iv), collectively the
“Acquired Entities” and individually, an “Acquired Entity”), (vi) Bruce Sargent
(“Sargent”), (vii) Michael Tweedie (“Tweedie” and together with Sargent,
collectively, “Sellers” and individually a “Seller”) and (viii) Sargent
Transportation Group, Inc., a Delaware corporation (“Buyer”).

     WHEREAS, Sellers own directly and beneficially all of the issued and outstanding capital stock
of the Acquired Entities (collectively, the “Securities”).

     WHEREAS, subject to the terms and conditions of this Agreement, Buyer desires to acquire from
Sellers, and Sellers desire to sell to Buyer, all of the Securities.

     NOW, THEREFORE, the parties hereto, intending to be legally bound, agree as follows:

ARTICLE I

PURCHASE AND SALE OF STOCK

     1.1 Stock Purchase.
Subject to the terms and conditions set forth in this Agreement, at the Closing, Buyer will
purchase from each Seller, and each Seller will sell and transfer to Buyer, all of the Securities
owned by such Seller as such ownership is set forth on Schedule 1.1 attached hereto, free
and clear of all Encumbrances (other than applicable restrictions under the Securities Act and
state securities Laws).

     1.2 Purchase Price.
Subject to the terms and conditions set forth in this Agreement, at the Closing, the aggregate
consideration to be paid to Sellers for the Securities will be: (i) $46,500,000 in cash
minus the aggregate amount of Indebtedness of the Acquired Entities outstanding as of
immediately prior to the Closing minus the aggregate amount of Transaction Bonuses paid
and/or payable to the Transaction Bonus Recipients minus $372,000 (the net result derived
in this clause (i), the “Cash Portion”); (ii) delivery to Sargent of a subordinated
promissory note issued by Buyer in the aggregate principal amount of $2,500,000, dated as of the
Closing Date and in substantially the form attached hereto as Exhibit A (the “Sargent
Note”); and (iii) delivery to Tweedie of a subordinated promissory note issued by Buyer in the
aggregate principal amount of $2,500,000, dated as of the Closing Date and in substantially the
form attached hereto as Exhibit B (the “Tweedie Note”, and together with the
Sargent Note, the “Seller Notes”) (the amounts described in clauses (i) — (iii),
collectively, the “Purchase Price”).

     1.3 Closing Transactions.

          (a) Closing. The closing of the purchase and sale of the Securities contemplated by
this Agreement (the “Closing”) will take place at the offices of Kirkland & Ellis LLP, 200
East Randolph Drive, Chicago, Illinois 60601, commencing at 10:00 a.m. (Chicago time) on the date
hereof. The date on which the Closing takes place is referred to herein as the “Closing
Date”.

          (b) Closing Transactions. Subject to the conditions set forth in this Agreement, the
parties shall consummate the following transactions at the Closing:

 

 

          (i) Each Seller shall deliver to Buyer the certificates representing the Securities
owned by such Seller, duly endorsed for transfer or accompanied by stock powers in
substantially the form attached hereto as Exhibit C, and free and clear of all
Encumbrances (other than applicable restrictions under the Securities Act and state
securities Laws);

          (ii) Buyer shall deliver to each Seller, by wire transfer of immediately available
funds to the account designated by such Seller on Schedule 1.3(b)(ii), an amount
equal to the product of (A) such Seller’s Pro Rata Share and (B) the Cash Portion;

          (iii) Buyer shall execute and deliver to Sargent the Sargent Note;

          (iv) Buyer shall execute and deliver to Tweedie the Tweedie Note;

          (v) [Reserved];

          (vi) The Acquired Entities shall pay to each of the Bonus Recipients the unpaid portion
of any Transaction Bonus due and payable to such Bonus Recipient as of the Closing within
five (5) Business Days following the Closing; it being understood and agreed that, in each
case, such payment shall be subject to reduction in respect of all applicable federal, state
and local tax withholdings;

          (vii) Sellers shall deliver to Buyer or to the premises of the Acquired Entities all
corporate books and records of each of the Acquired Entities;

          (viii) Sellers shall deliver to Buyer copies of all consents and approvals listed on
Schedule 1.3(b)(viii);

          (ix) Sellers shall deliver to Buyer copies of all filings, authorizations and approvals
and other Permits by, with or to any Governmental Entity listed on Schedule
1.3(b)(viii);

          (x) Sellers shall deliver to Buyer payoff letters with respect to all Indebtedness
included in the determination of the Cash Portion of the Purchase Price which Buyer has
notified the Sellers of its intent to repay or prepay on the Closing Date and releases of
any and all Encumbrances in respect of any Indebtedness shall have been obtained, in each
case on terms reasonably satisfactory to Buyer;

          (xi) Sellers shall deliver, or caused to be delivered, to Buyer all of the following:

               (A) certified copies of the resolutions of each Acquired Entity’s board of directors
authorizing the execution, delivery and performance of this Agreement and the other
agreements contemplated hereby and the consummation of the transactions contemplated hereby
and thereby;

               (B) certified copies of the certificate of incorporation and by-laws of each Acquired
Entity;

               (C) a certificate of the secretary of state of the state in which each Acquired Entity
is incorporated and each state in which each Acquired Entity is required to be qualified to
do business stating that such Acquired Entity is in good standing in such state;

2

 

               (D) a certificate from each Acquired Entity meeting the requirements of Treasury
Regulation Section 1.1445-2(c)(3);

               (E) resignations from each director of the Acquired Entities; and

               (F) all of the documents required to be delivered by each Seller and such Seller’s
spouse (if any) pursuant Section 9.1(g), duly executed by such Seller and/or such
Seller’s spouse, as applicable.

          (xii) On or prior to the Closing Date, Buyer will have delivered, or caused to be
delivered, to Sellers all of the following:

               (A) certified copies of the resolutions of Buyer’s board of directors authorizing the
execution, delivery and performance of this Agreement and the other agreements contemplated
hereby and the consummation of the transactions contemplated hereby and thereby;

               (B) certified copies of the certificate of incorporation and by-laws of Buyer; and

               (C) a certificate of the Secretary of State of the State of Delaware stating that Buyer
is in good standing in such state.

          (xiii) Each of Sargent and Buyer shall enter into, as of the Closing, the employment
agreement in substantially the form of Exhibit D attached hereto; and

          (xiv) Each of Tweedie and Buyer shall enter into, as of the Closing, the employment
agreement in substantially the form of Exhibit E attached hereto.

     1.4 Contingent Payments.

          (a) Following the Closing and as additional consideration for the Securities, Buyer shall
make, or cause the Acquired Entities to make, to Sellers (subject to the terms and conditions set
forth in this Section 1.4) additional cash payments based on the performance of the
Acquired Entities during each of the twelve month periods ending (i) December 31, 2006, (ii)
December 31, 2007, (iii) December 31, 2008 and (iv) December 31, 2009 (each, a “Contingent
Payment Period”). With respect to each Contingent Payment Period, Buyer shall make, or cause
the Acquired Entities to make, to Sellers cash payments in an aggregate amount equal to the amount,
if any, by which EBITDA during such Contingent Payment Period exceeds $8,000,000 (each such excess,
if and to the extent earned for any such Contingent Payment Period, a “Contingent
Payment”). The Contingent Payment, if any, for each Contingent Payment Period shall be paid by
Buyer or (at Buyer’s direction) the Acquired Entities as follows: (A) Buyer or (at Buyer’s
direction) the Acquired Entities shall pay to each Seller an amount equal to 50% of such Seller’s
Pro Rata Share of such Contingent Payment in accordance with Section 1.4(b) below and (B)
Buyer or (at Buyer’s direction) the Acquired Entities shall pay to each Seller an amount equal to
50% of such Seller’s Pro Rata Share of such Contingent Payment on April ___, 2012.

          (b) Within five (5) Business Days following Buyer’s receipt of its audited consolidated
financial statements for a particular Contingent Payment Period, but in any event within 95 days
following the last day of each Contingent Payment Period, Buyer’s board of directors (the
“Board”) shall deliver to each Seller (i) a copy of such financial statements, if such
financial statements have been delivered to Buyer as of such date, (ii) a statement (a
“Calculation Notice”) setting forth in reasonable detail Buyer’s calculation of the
Contingent Payment (if any) for such Contingent Payment Period and

3

 

(iii) an amount equal to 50% of
such Seller’s Pro Rata Share of such Contingent Payment (if any) for such Contingent Payment Period
as set forth on the Calculation Notice, by wire transfer of immediately available funds to the
applicable account designated by such Seller on Schedule 1.3(b)(ii). With respect to any
relevant Contingent Payment Period, during the 60-day period immediately following the delivery by
the Board to Sellers of the Calculation Notice for such Contingent Payment Period, Sellers shall be
permitted to review Buyer’s and its Subsidiaries’ books and records and to have reasonable access
to Buyer’s and its Subsidiaries’ personnel and accountants involved in preparing the Calculation
Notice, subject in each case, to the confidentiality obligations in Section 9.5, to verify
the accuracy of Buyer’s calculation of the Contingent Payment (if any) for such Contingent Payment
Period. With respect to each Contingent Payment Period, the Calculation Notice shall become final
and binding on the parties 60 days following the Board’s delivery thereof unless, prior to such
date, Sellers have delivered to Buyer a written notice of their objection (an “Objection
Notice”) to Buyer’s calculation of the Contingent Payment (if any) for such Contingent Payment
Period. Any Objection Notice shall specify in reasonable detail the nature and estimated dollar
amount of any disagreement so asserted. During the 60 days following the delivery of an Objection
Notice, the parties shall seek in good faith to resolve in writing any disagreements with respect
to the matters specified in the Objection Notice. If no mutually acceptable resolution has been
reached during such 60-day period, then at the end of such 60-day period, the parties shall submit
all unresolved matters (but only such matters) which are referred to in the Objection Notice and
which remain in dispute to a mutually agreed upon “nationally recognized” independent certified
public accounting firm (the “Accounting Firm”) for resolution. If Buyer and the Sellers
are unable to mutually agree upon such an accounting firm within the five (5) days after expiration
of the 60-day period, then Buyer, on the one hand, and Sellers, on the other hand, shall each
select a “nationally recognized” independent certified public accounting firm and within five (5)
days after their selection, those two accounting firms shall select a third “nationally recognized”
independent certified public accounting firm, which third accounting firm shall act as the
Accounting Firm. If any matter is submitted to the Accounting Firm for resolution, Sellers and
Buyer will furnish, or cause to be furnished, to the Accounting Firm such reports and information
relating to the disputed matter as the Accounting Firm may reasonably request and shall be afforded
the opportunity to discuss the disputed matter with the Accounting Firm. The Accounting Firm will
have thirty (30) days to carry out a review and prepare a written statement of its determination
(the “Resolution Statement”) regarding the disputed matter(s) which determination shall be
final and binding upon the parties. Any and all fees and expenses of the Accounting Firm incurred
in resolving the disputed matter pursuant to this Section 1.4(b) shall be borne by the
non-prevailing party as determined by the Accounting Firm. If the Accounting Firm’s calculation of
the Contingent Payment (if any) for such Contingent Payment Period exceeds Buyer’s calculation of
the Contingent Payment (if any) for such Contingent Payment Period as reflected on the Calculation
Notice, then promptly after the Accounting Firm’s delivery of the Resolution Statement (if any)
for such Contingent Payment Period (but in any event within five (5) Business Days thereafter),
Buyer shall deliver to each Seller an amount equal to 50% of such Seller’s Pro Rata Share of such
excess amount.

          (c) Notwithstanding anything to the contrary in this Agreement, neither Buyer nor any Acquired
Entity shall be obligated to pay all or any portion of the Contingent Payments (if any) on the date
any such payment is otherwise due hereunder (and, except as provided in Section 9.10, each
Seller acknowledges and agrees that any failure by Buyer and/or the Acquired Entities to make any
such payment shall not constitute a default under or breach of this Agreement for any reason) if
and to the extent that the payment of such amount (i) is prohibited by a holder of Senior
Indebtedness (as such term
is defined in the Senior Notes) or (ii) would result in a default or acceleration under any
agreement or instrument with respect to Senior Indebtedness (as such term is defined in the Senior
Notes); provided that Buyer shall pay any such amounts as soon as and to the extent
that all of the restrictions set forth in the foregoing clauses (i) and (ii) above cease to exist
as to such amount. In such case, Buyer will use commercially reasonable efforts to seek applicable
waivers of any restrictions on the payment of any such Contingent Payment under Buyer’s and/or its
Subsidiaries financing agreements with respect to such

4

 

Senior Indebtedness (as such term is defined
in the Senior Notes) which prohibit the making of any such Contingent Payment otherwise due and
payable hereunder. Any amounts due and owing under this Section 1.4 in respect of
Contingent Payments that are not paid when due shall accrue interest at a rate per annum equal to
12%, calculated from the date such payment is otherwise due hereunder until the actual date of
payment. For the avoidance of doubt, no interest will accrue on any portion of any Contingent
Payment deferred pursuant to Clause (B) of Section 1.4(a) during the period commencing on
the Closing Date and ending on April ___, 2012.

          (d) The right of each Seller to receive any Contingent Payment (i) is solely a contractual
right and is not a security for purposes of any federal or state securities Laws (and shall confer
upon such Seller only the rights of a general unsecured creditor under applicable Law) and (ii) may
not be sold, assigned, pledged, gifted, conveyed, transferred or otherwise disposed of (a
“Transfer”) without the prior written consent of Buyer (provided that any Seller’s rights
to receive any Contingent Payment hereunder shall be assignable to a member of such Seller’s Family
Group so long as (i) such Seller delivers written notice of such assignment to Buyer in form and
substance reasonably satisfactory to Buyer (which notice shall, among other matters, disclose in
reasonable detail the identity of the transferee and the rights of such Seller to be assigned to
such transferee) and (ii) the transferee thereof delivers a written acknowledgement to Buyer in
form and substance reasonably satisfactory to Buyer acknowledging, among other matters, that the
rights assigned to such Person to receive any Contingent Payment is subject to the terms and
conditions of this Agreement). Any Transfer in violation of this Section 1.4(d) shall be
null and void.

     1.5 Payment and Cancellation of Certain Accounts.

          (a) Immediately prior to the Closing, all remaining liabilities (other than (1) any
liabilities created by this Agreement or (2) any liabilities owed by any Acquired Entity to another
Acquired Entity) owed by any Seller or any of their respective Affiliates to any Acquired Entity,
whether or not reflected in the financial statements of any of the Acquired Entities, shall be paid
in full in cash.

          (b) Immediately prior to the Closing, all remaining liabilities (other than (1) any
liabilities created by this Agreement, (2) any liabilities for accrued wages, benefits and similar
employment-related liabilities incurred in the ordinary course of business, (3) any liabilities
owed by any Acquired Entity to another Acquired Entity or (4) any liabilities owed to any
independent trucker who is neither an Insider nor has an Insider as a direct or indirect owner)
owed by any Acquired Entity to any Seller or any of their respective Affiliates shall be considered
Indebtedness of such Acquired Entity and included as such in the determination of the Cash Portion
of the Purchase Price, and paid at Closing.

5

 

ARTICLE II

[RESERVED]

ARTICLE III

[RESERVED]

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

CONCERNING THE ACQUIRED ENTITIES

     As a material inducement to Buyer to enter into this Agreement and consummate the transactions
contemplated hereby, Sellers hereby represent and warrant to Buyer that:

     4.1 Organization.

          (a) Each Acquired Entity is a subchapter S corporation duly organized, validly existing and in
good standing under the Laws of the jurisdiction of its respective state of incorporation.

          (b) Each Acquired Entity has obtained and currently maintains all qualifications to do
business as a foreign corporation in all other jurisdictions in which the character of such
Acquired Entity’s properties or the nature of such Acquired Entity’s activities require it to be so
qualified, except where the failure to be so qualified has not resulted in and will not result in,
either individually or in the aggregate, a Loss to the Acquired Entities in excess of $20,000 or an
award of non-monetary relief. The jurisdiction in which each such Acquired Entity is incorporated
and all jurisdictions in which each such Acquired Entity is qualified are set forth on Schedule
4.1.

          (c) Each Acquired Entity has full corporate power and authority to own and operate its
properties and to carry on its business as now conducted. Sellers have delivered to Buyer correct
and complete copies of each Acquired Entity’s certificate of incorporation and by-laws and all
amendments made thereto. No Acquired Entity is in default under or in violation of any provision
of its certificate of incorporation or by-laws.

          (d) The minute books and stock record books are complete and correct, except where the failure
to be complete and correct has not resulted in and will not result in, either individually or in
the aggregate, a Loss to the Acquired Entities in excess of $20,000 or an award of non-monetary
relief.

     4.2 Authorization.

          (a) Each Acquired Entity has full corporate power and authority to execute and deliver this
Agreement and all other agreements contemplated hereby to which it is a party and to consummate the
transactions contemplated hereby and thereby. The board of directors of each Acquired Entity has
duly and validly authorized and approved the execution, delivery and performance by such Acquired
Entity of this Agreement and all other agreements contemplated hereby to which such Acquired
Entity is a party and no other corporate proceedings on the part of such Acquired Entity is
necessary to authorize and approve any such execution, delivery or performance.

6

 

          (b) This Agreement and all other agreements contemplated hereby to which each such Acquired
Entity is a party have been duly and validly executed and delivered by each such Acquired Entity
and constitute the valid and binding agreements of such Acquired Entity, enforceable against such
Acquired Entity in accordance with their respective terms, except as enforceability hereof or
thereof may be limited by bankruptcy, insolvency, reorganization, moratorium or other Laws
affecting creditors’ rights generally and limitations on the availability of equitable remedies.

     4.3 Capitalization.

          (a) The authorized, issued and outstanding shares of each class of capital stock of each
Acquired Entity, the names of the record and beneficial holders thereof and the number of shares of
capital stock held by each such holder is as set forth on Schedule 4.3. Except as set
forth on Schedule 4.3, there are no authorized, issued or outstanding shares of capital
stock or other indicia of equity ownership (including options, warrants, profits interests, share
appreciation, phantom stock and similar rights) (collectively, “Equity Interests”) of any
Acquired Entity. The Securities constitute 100% of the issued and outstanding Equity Interests.

          (b) All of the issued and outstanding Equity Interests of each Acquired Entity have been duly
authorized, are validly issued, fully paid and nonassessable, are not subject to, nor were they
issued in violation of, any preemptive rights, and are owned of record and beneficially by Sellers
as set forth on Schedule 4.3, free and clear of any Encumbrances (other than applicable
restrictions under the Securities Act and state securities Laws).

          (c) Except as set forth on Schedule 4.3, there are no (i) outstanding or authorized
options, warrants, rights, calls, puts, rights to subscribe, conversion rights or other similar
securities or Contracts to which any Acquired Entity or any Seller is a party or by which any
Acquired Entity or any Seller is bound providing for the issuance, disposition or acquisition of
any Acquired Entity’s shares of capital stock or other Equity Interests (other than this Agreement)
and (ii) voting trusts, proxies or any other agreements or understandings with respect to the
voting and/or transfer of the shares of capital stock or other Equity Interests of any Acquired
Entity, and no Seller is party to any such agreement or understanding. No Acquired Entity is
subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire
any of its shares of capital stock or other Equity Interests.

     4.4 Subsidiaries. No Acquired Entity owns, holds or controls, directly or indirectly, any shares of capital
stock, Equity Interest or other security, investment or participation in any other Person or has
any rights to acquire any such interest. No Acquired Entity has any Subsidiaries.

     4.5 Absence of Conflicts. Except as set forth in Schedule 4.5, the execution, delivery and performance by the
Acquired Entities of this Agreement and the other agreements contemplated hereby to which any
Acquired Entity is a party do not and will not (a) conflict with or result in any breach of any of
the provisions of, (b) constitute a default under, (c) result in a violation of, (d) give any third
party the right to terminate or to accelerate any obligation under, (e) result in the creation of
any Encumbrance upon the Securities under,
or (f) require any authorization, consent, approval, exemption or other action by or notice to
any Governmental Entity under, the provisions of the certificate of incorporation or by-laws of any
Acquired Entity or any Permit or Material Contract by which any Acquired Entity is bound or
affected, or any Order or Law to which any Acquired Entity is subject, other than any applicable
filings and notices under the HSR Act.

     4.6 Financial Statements.

7

 

          (a) Schedule 4.6(a) attached hereto contains the following financial statements: (i)
the unaudited combined balance sheet of the Acquired Entities as of June 30, 2006 (the “Latest
Balance Sheet”) and the related statements of income and cash flow for the six-month period
then ended; and (ii) the audited combined balance sheet and statements of income and cash flow of
the Acquired Entities as of and for the twelve-month periods ending December 31, 2005 and December
31, 2004, in each case prepared after elimination of all intercompany accounts and/or transactions.

          (b) Each of the financial statements set forth on Schedule 4.6(a) (including in all
cases the notes thereto, if any) (the “Financial Statements”) is accurate and complete, is
consistent with the Acquired Entities’ books and records (which, in turn, are accurate and complete
in all material respects), presents fairly the Acquired Entities’ combined financial condition and
results of operations as of the times and for the periods referred to therein, and, except as set
forth on Schedule 4.6(b), has been prepared in accordance with GAAP applied on a consistent
basis throughout the periods covered thereby (subject to, in the case of the unaudited Financial
Statements, the absence of footnote disclosures and changes resulting from normal year-end
adjustments, none of which are material, individually or in the aggregate).

     4.7 Absence of Undisclosed Liabilities. No Acquired Entity has any obligations or liabilities (whether accrued, absolute, contingent,
unliquidated or otherwise, whether or not known, whether due or to become due and regardless of
when asserted), except (i) liabilities or obligations under Contracts described in Schedule
4.12(a) or under Contracts which are not required to be disclosed thereon (but not liabilities
for breaches thereof), (ii) liabilities reflected on the liabilities side of the Latest Balance
Sheet, (iii) liabilities which have arisen after the date of the Latest Balance Sheet in the
Ordinary Course of Business or otherwise in accordance with the terms and conditions of this
Agreement (none of which is a liability for breach of Contract, breach of warranty, tort,
misappropriation or infringement, or a claim or lawsuit, or an environmental, health or safety
liability), (iv) liabilities otherwise disclosed on Schedule 4.7 attached hereto and (v)
any liability or obligation or series of related liabilities or obligations of less than $20,000.

     4.8 Absence of Certain Developments. Except as set forth in Schedule 4.8 attached hereto, since December 31, 2005, no
Acquired Entity has:

          (a) suffered a Material Adverse Effect, taken as a whole with the other Acquired Entities;

          (b) issued, sold or transferred any notes, bonds or other debt securities or any Equity
Interests, securities convertible, exchangeable or exercisable into Equity Interests, or warrants,
options or other rights to acquire Equity Interests, of such Acquired Entity;

          (c) mortgaged, pledged or subjected to any Encumbrance any portion of its properties or assets
other than in the Ordinary Course of Business;

          (d) except as set forth on Schedule 4.28, sold, leased, assigned or transferred
(including transfers to any Seller or Affiliate of any Seller or any Acquired Entity) any portion
of its assets or properties, except for the sale of services and inventory in the Ordinary Course
of Business to unaffiliated third parties (excluding, for the avoidance of doubt, any Insiders);

          (e) sold, assigned, licensed or transferred (including, without limitation, transfers to any
Seller or Affiliate of any Seller or any Acquired Entity) any Proprietary Rights, disclosed any
confidential information other than pursuant to a written confidentiality agreement or received any
confidential information of any third party in material violation of any obligation of
confidentiality;

8

 

          (f) suffered any theft, damage, destruction or loss in excess of $100,000, to its assets or
properties, whether or not covered by insurance, or suffered any substantial destruction of its
books and records;

          (g) made or entered into any arrangement to make an acquisition (whether by merger,
acquisition of stock or assets, or otherwise) of any business;

          (h) entered into, amended or terminated any Contract required to be disclosed on Schedule
4.12(a), other than in the Ordinary Course of Business, or entered into any transaction with
any Insider;

          (i) entered into, amended or terminated any employee benefits plan or arrangement, collective
bargaining agreement, or employment agreement or made or granted any bonus, any wage, salary or
compensation increase to any salaried employee (other than normal annual increases in the Ordinary
Course of Business), or any severance package to any of its employees or independent contractors,
or made or granted any increase in any employee benefit plan or arrangement, except in each case
for the Transaction Bonuses;

          (j) implemented any layoff or termination of employees that implicates the Worker Adjustment
and Retraining Notification Act of 1988, as amended, or any similar foreign, state or local Law
(the “WARN Act”);

          (k) made any loans or advances to, or guarantees for the benefit of, or otherwise become
liable for the Indebtedness or other legal obligation of, any Person (other than loans to truckers
in the Ordinary Course of Business not to exceed $20,000 in the aggregate in respect of any
individual trucker);

          (l) changed or authorized any change in its certificate of incorporation or by-laws;

          (m) conducted its business and operations other than in the Ordinary Course of Business in
accordance with past custom and practice, including, without limitation, with respect to
maintenance of working capital balances, collection of accounts receivable, payment of employee
compensation, payment of accounts payable, the making of all scheduled capital expenditures and the
managing of cash accounts generally; or

          (n) committed to do any of the foregoing.

     4.9 Real and Personal Property.

          (a) Schedule 4.9(a) sets forth the common street address and descriptions of all real
property owned by each Acquired Entity (the “Owned Real Property”). With respect to each
Owned Real Property, other than the right of Buyer pursuant to this Agreement, there are no
outstanding options, rights of first offer or rights of first refusal to purchase such Owned Real
Property or any portion thereof or interest therein.

          (b) Schedule 4.9(b) sets forth a true, correct and complete list of leases of real
property (the “Leased Real Property”) to which any Acquired Entity is a party (the
“Leases”). Each of the Leases is in full force and effect and such Acquired Entity holds a
valid and existing leasehold or subleasehold interest under each of the Leases. Sellers have
delivered to Buyer complete and accurate copies of each of the written Leases, including all
amendments and modifications thereto. Schedule

9

 

 4.9(b) contains a description of all
material terms of all oral Leases referred to therein, including all amendments and modifications
thereto. With respect to each Lease:

          (i) the Lease is legal, valid, binding, enforceable and in full force and effect in
accordance with and subject to its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or other Laws affecting creditors’ rights
generally and limitations on the availability of equitable remedies and other matters
affecting the landlord’s interests;

          (ii) no Acquired Entity nor, to the Knowledge of the Acquired Entities, any other party
to the Lease, is in breach or default, and no event has occurred which, with notice or lapse
of time, would constitute such a breach or default or permit termination, modification or
acceleration under the Lease, except for those breaches and defaults that have not resulted
in and which will not result in, either individually or, in the case of a series of related
breaches and defaults, in the aggregate, a Loss to the Acquired Entities in excess of
$20,000 or an award of non-monetary relief;

          (iii) the Lease has not been modified in any respect, except to the extent that such
modifications are disclosed by the documents delivered to Buyer, in the case of any written
Lease, or are set forth on Schedule 4.9(b), in the case of any oral Lease;

          (iv) there are no disputes between the parties to the Lease; and

          (v) no Acquired Entity has assigned, transferred, conveyed, mortgaged, deeded in trust
or encumbered any interest in the Lease.

          (c) Except with respect to the property described on Schedule 4.9(c), all components
of all buildings, equipment, structures and other improvements included within the Real Property
(the “Improvements”) are in good repair and in good condition to operate the Acquired
Entities’ businesses as currently operated and, to the Acquired Entities’ Knowledge, there are no
facts or conditions affecting any of the Improvements which would, individually or in the
aggregate, interfere with the use, occupancy or operation thereof as currently used, occupied or
operated, except for any such interference that has not resulted in and which will not result in,
individually or in the aggregate, a Loss to the Acquired Entities in excess of $20,000 or an award
of non-monetary relief.

          (d) Except with respect to the property described on Schedule 4.9(d) and the Owned
Real Property, each Acquired Entity has good and marketable title to, or a valid leasehold interest
in, all real and personal property owned, leased or used by it, wherever located, free and clear of
all Encumbrances (other than Permitted Encumbrances and Encumbrances set forth on Schedule
4.9(d)) and such property and assets are in good condition and repair (ordinary wear and tear
expected) and are fit for use in the Ordinary Course of Business.

          (e) The Acquired Entities own or lease, under valid leases, all assets and properties (whether
real or personal, tangible or intangible) necessary for the conduct of their businesses as
presently conducted. The Real Property identified on Schedule 4.9(a) and Schedule
4.9(b) comprise all of the real property used in the businesses of the Acquired Entities.

     4.10 Accounts Receivable. All of the accounts receivable of the Acquired Entities reflected on the Latest Balance Sheet
are, and all accounts receivable arising after the date of the Latest Balance Sheet will be, good
and valid receivables (subject to no counterclaims or offsets) and arise from work performed in the
Ordinary Course of Business; it being understood that this Section 4.10 shall not be

10

 

deemed
a representation or warranty with respect to, or a guaranty of, the collectibility of such accounts
receivable. Except as set forth in Schedule 4.10, (i) there are no individual accounts
receivable which are more than 90 days past due and (ii) no Person has any Encumbrance on such
receivables or any part thereof, and no agreement for deduction, free goods, discount or other
deferred price or quantity adjustment has or will have been made with respect to any such
receivables other than in the Ordinary Course of Business.

     4.11 Taxes.

          (a) Except as set forth in Schedule 4.11 attached hereto:

          (i) each Acquired Entity has timely filed all Tax Returns which it is required to file
under applicable Laws in all jurisdictions and all such Tax Returns are complete and
accurate and have been prepared in compliance with all applicable Laws, except where any
such failure to comply has not resulted in and will not result in, either individually or,
in the case of a series of related failures to comply, in the aggregate, a Loss to the
Acquired Entities in excess of $20,000 or an award of non-monetary relief;

          (ii) each Acquired Entity (x) has paid all Taxes due and owing by it (whether or not
such Taxes are required to be shown on a Tax Return), (y) has withheld and paid all Taxes
required to have been withheld and paid by it in connection with any amounts paid or owing
to any employee, independent contractor, equityholder, creditor or other Person, and (z) has
complied in all respects with all of its reporting and recordkeeping requirements, except,
in the case of this clause (z), where any such failure to comply has not resulted in and
will not result in, either individually or, in the case of a series of related failures to
comply, in the aggregate, a Loss to the Acquired Entities in excess of $20,000 or an award
of non-monetary relief;

          (iii) no Acquired Entity has waived any statute of limitations with respect to any
Taxes or agreed to any extension of time with respect to any Tax assessment or deficiency
which are currently in force and effect;

          (iv) no Acquired Entity has incurred any liability for Taxes other than in the Ordinary
Course of Business since the date of the Latest Balance Sheet;

          (v) the unpaid Taxes of the Acquired Entities did not, as of the date of the Latest
Balance Sheet, exceed the reserve for Taxes (rather than any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) set forth on the face
of the Latest Balance Sheet (rather than in any notes thereto);

          (vi) no foreign, federal, state or local tax audits or administrative or judicial
proceedings are pending, being conducted or, to the Knowledge of the Acquired Entities, are
threatened with respect to any Acquired Entity with respect to any Tax matter, no
information related to Tax matters has been requested by any Governmental Entity and no
written notice indicating an intent to open an audit or other review related to Tax matters
has been received by any Acquired Entity from any Governmental Entity; and

          (vii) except as has not resulted in and will not result in, either individually or, in
the case of a series of related matters, in the aggregate, a Loss to the Acquired Entities
in excess of $20,000 or an award of non-monetary relief, there are no unresolved questions
or claims concerning the Acquired Entities’ Tax liability which have been raised by any
Governmental Entity.

11

 

          (b) No Acquired Entity is liable for the Taxes of another Person under Treasury Regulation
Section 1.1502-6 (or comparable provisions of state, local or foreign Law), as a transferee or
successor, by Contract or indemnity or otherwise. No Acquired Entity is a party to any tax sharing
agreement or arrangement (other than the fuel tax agreements listed on Schedule 9.1(e)).

          (c) No claim has ever been made, with notice to any of the Acquired Entities, by a taxing
authority or other Governmental Entity in a jurisdiction where any Acquired Entity does not file
Tax Returns that such Acquired Entity is or may be subject to Taxes assessed by such jurisdiction.

          (d) There are no Encumbrances for Taxes (other than for current Taxes not yet due and payable)
upon the assets of any Acquired Entity.

          (e) No Acquired Entity has been a member of an Affiliated Group, or filed or been included in
a combined, consolidated or unitary income Tax Return, other than one filed by an Acquired Entity.

          (f) Except as set forth on Schedule 4.11(f), each Acquired Entity (other than Smith
Truck Brokers, Inc.) has been a validly electing S corporation within the meaning of Sections 1361
and 1362 of the Code and any corresponding state or local tax provisions at all times since January
1, 1996 or, if a shorter period, at all times during its existence. Smith Truck Brokers, Inc. has
been a validly electing S corporation within the meaning of Sections 1361 and 1362 of the Code and
any corresponding state or local tax provisions at all times since January 1, 2001. Each of the
Acquired Entities will be a validly electing S corporation up to the Closing Date.

          (g) No Acquired Entity will be liable for any Tax under Section 1374 of the Code in connection
with the deemed sale of its assets caused by the Section 338(h)(10) election. No Acquired Entity
has, in the past ten (10) years, (i) acquired assets from another corporation in a transaction in
which the Tax basis for the acquired assets was determined, in whole or in part, by reference to
the Tax basis of the acquired assets (or any other property) in the hands of the transferor or (ii)
acquired the stock of any corporation which is a qualified subchapter S subsidiary.

          (h) No Acquired Entity owns any interest in real property in any jurisdiction in which a Tax
(other than a net income or franchise Tax) is imposed on the gain on a transfer of an interest in
real property.

          (i) No Acquired Entity has participated in any “reportable transaction” as defined in Treasury
Regulation 1.6011-4.

          (j) No Acquired Entity is a party to any Contract or other arrangement that is subject to
Section 409A of the Code that either (i) does not comply with the requirements of Section 409A(2),
(3) and (4) of the Code or (ii) has not been operated in substantial compliance with such
requirements (as interpreted by Notice 2005-1 or Proposed Regulations §§1.409A-1, -2, and -3) since
January 1, 2005.

     4.12 Contracts and Commitments. 

          (a) Except as set forth in Schedule 4.12(a) attached hereto, no Acquired Entity is a
party to or bound by any:

          (i) collective bargaining agreement or other Contract with any labor union or any
bonus, pension, profit sharing, retirement or any other form of deferred compensation plan

12

 

or any stock purchase, stock option, incentive, hospitalization insurance or similar plan or
practice, whether formal or informal;

          (ii) Contract for the employment or engagement of any officer, individual employee,
independent contractor or other Person on a full time or consulting basis or any severance,
retention or similar Contracts;

          (iii) Contract relating to the borrowing of money or to mortgaging, pledging or
otherwise placing an Encumbrance on any of its assets;

          (iv) Contract in which such Acquired Entity guarantees the payment of any Indebtedness;

          (v) Contract with respect to the lending or investing of funds;

          (vi) license, sublicense or royalty Contract relating to Proprietary Rights;

          (vii) Contract under which it is lessee of, or holds or operates, any personal property
owned by any other party calling for payments in excess of $25,000 annually;

          (viii) Contract under which it is lessor of or permits any third party to hold or
operate any property, real or personal, owned or controlled by it calling for payments in
excess of $25,000 annually;

          (ix) Contract or group of related Contracts with the same party for the license,
purchase or sale of supplies, products or other personal property or for the furnishing or
receipt of services which involves a sum in excess of $25,000 annually;

          (x) Contract or group of related Contracts with the same party continuing over a period
of more than 6 months from the date or dates thereof, not terminable by it on 30 days’ or
less notice without penalties or payments;

          (xi) Contract which prohibits it from freely engaging in business anywhere in the
world; or

          (xii) Contract pursuant to which it subcontracts work to third parties which involves a
sum in excess of $25,000 annually.

          (b) Each Contract required to be disclosed on Schedule 4.12(a) is referred to herein
as a “Material Contract”. Sellers have provided Buyer with a true and correct copy of all
Material Contracts, in each case together with all amendments, waivers or other modifications
thereto (all of which are disclosed on Schedule 4.12(a)). Schedule 4.12(a)
contains a description of all material terms of all oral Contracts referred to therein.

          (c) Except as specifically disclosed in Schedule 4.12(c):

          (i) the Acquired Entities’ have no Knowledge of any cancellation, breach or anticipated
breach by any other party to any Material Contract, except for those cancellations, breaches
or anticipated breaches that have not resulted in and which will not result in, either
individually or, in the case of a series of related breaches, in the aggregate, a Loss to
the Acquired Entities in excess of $20,000 or an award of non-monetary relief;

13

 

          (ii) each Acquired Entity has performed in all respects all the obligations required to
be performed by it under or in connection with each Material Contract and no Acquired Entity
is in breach of and/or default under any Material Contract, other than those events of
non-performance, defaults and breaches that have not resulted in and which will not result
in, either individually or, in the case of a series of related events of non-performance,
breaches or defaults, in the aggregate, a Loss to the Acquired Entities in excess of $20,000
or an award of non-monetary relief;

          (iii) no customer, supplier or independent contractor that is a counterparty to any
Material Contract has indicated in writing or, to the Knowledge of the Acquired Entities
(after reasonable inquiry of the Acquired Entities’ dispatchers), orally to any Seller or
Acquired Entity that it will stop or materially decrease the rate of business done with the
Acquired Entities or that it desires to renegotiate its Material Contract with any Acquired
Entity; and

          (iv) each Material Contract is legal, valid, binding, enforceable and in full force and
effect, enforceable against each of the parties thereto, except as enforceability thereof
may be limited by bankruptcy, insolvency, reorganization, moratorium or other Laws affecting
creditors’ rights generally and limitations on the availability of equitable remedies.

          (d) No Acquired Entity is a party to any Contract, and there is no such Contract by which any
Acquired Entity or any of its properties or assets is bound or affected, to loan money or extend
credit (other than trade credit or advances to employees or independent contractors (including
truck drivers) in the Ordinary Course of Business) to any other Person. No Acquired Entity is a
guarantor or otherwise liable for any indebtedness or other obligations of any other Person other
than endorsements for collection in the Ordinary Course of Business.

     4.13 Proprietary Rights.

          (a) Schedule 4.13(a) sets forth a complete and correct list of: (i) all patented or
registered Proprietary Rights and all pending patent applications and other applications for
registration of Proprietary Rights owned, filed or used by any Acquired Entity; (ii) all trade
names and unregistered trademarks owned or used by any Acquired Entity; (iii) all computer software
owned or used by any Acquired Entity (except for unmodified, commercially available off-the-shelf
software purchased or licensed for less than $10,000); and (iv) all Contracts which any Acquired
Entity is a party either as licensee or licensor of any Proprietary Rights.

          (b) Except as set forth on Schedule 4.13(b), (i) the Acquired Entities own and possess
the entire right, title and interest in and to, or have a valid and enforceable right to use
pursuant to a written agreement identified on Schedule 4.13(a), all of the Proprietary
Rights set forth on Schedule 4.13(a) and all other Proprietary Rights necessary for the
operation of their businesses as currently conducted (collectively, the “Company Proprietary
Rights”), free and clear of all Encumbrances other than Permitted Encumbrances, and no claim by
any third party contesting the validity, enforceability, use or ownership of any of the Company
Proprietary Rights has been made, is currently outstanding or, to the Acquired Entities’ Knowledge,
is threatened, and, to Acquired Entities’ Knowledge, there are no grounds for same; (ii) the loss
or expiration of any Company Proprietary Rights or related group of Company Proprietary Rights has
not resulted in and would not result in a Loss to the Acquired Entities in excess of $20,000 or an
award of non-monetary relief, and no such loss or expiration is threatened in writing; and (iii) to
the Acquired Entities’ Knowledge, no Acquired Entity has infringed, misappropriated or otherwise
conflicted with any Proprietary Rights of any third parties. The Acquired Entities have taken
commercially reasonable actions to maintain and protect the Company Proprietary Rights necessary in

14

 

light of the nature of their businesses so as not to adversely affect the ownership, validity or
enforcement of such Company Proprietary Rights.

     4.14 Litigation; Proceedings.
Except as set forth in Schedule 4.14 attached hereto, there are no Proceedings
pending, or, to the Knowledge of the Acquired Entities, threatened against or affecting any of the
Acquired Entities, any of their assets or properties at law or in equity, or before or by any
Governmental Entity. None of the Acquired Entities is subject to any outstanding Order issued by
any Governmental Entity. Except with respect to the pending Proceedings of the Department of
Transportation (or similar federal or state authority) set forth on Schedule 4.14 and
marked with an asterisk (*), the Acquired Entities are fully insured (subject to applicable
deductibles) with respect to each of the matters set forth on Schedule 4.14.

     4.15 Brokerage.
Except as set forth on Schedule 4.15, there are no claims or liability of any Acquired
Entity for brokerage commissions, finders’ fees or similar compensation in connection with the
transactions contemplated by this Agreement based on any arrangement or agreement made by or on
behalf of any Acquired Entity.

     4.16 Permits.
The Acquired Entities own or possess all right, title and interest in and to all Permits that
are necessary for their respective businesses and operations as currently conducted (all of which
are set forth on Schedule 4.16 attached hereto), except as has not resulted in and which
will not result in, either individually or, in the case of a series of related failures to own or
possess, in the aggregate, a Loss to the Acquired Entities in excess of $20,000 or an award of
non-monetary relief, and all such Permits are in full force and effect as of immediately prior to
the Closing and the Acquired Entities are in compliance in all respects with the terms and
conditions of such Permits as of immediately prior to the Closing, except for
any such failure to comply that has not resulted in and which will not result in, either
individually or, in the case of a series of related failures to comply, in the aggregate, a Loss to
the Acquired Entities in excess of $20,000 or an award of non-monetary relief.

     4.17 Employee Benefit Plans.

          (a) Except as set forth on Schedule 4.17 attached hereto, no Acquired Entity
maintains, sponsors, contributes to, has any obligation to contribute to, or has any liability or
potential liability with respect to any (i) nonqualified deferred compensation, bonus or retirement
plans or arrangements, (ii) qualified defined contribution or defined benefit plans or arrangements
which are employee pension benefit plans (as defined in Section 3(2) of the Employee Retirement
Income Security Act of 1974 (“ERISA”), (iii) employee welfare benefit plans (as defined in
Section 3(1) of ERISA), or (iv) stock option or stock purchase plans, or any other employee benefit
plans, programs, or arrangements (written or oral and whether or not subject to ERISA) that is
maintained, administered, sponsored or contributed to by any Acquired Entity under which any
present or former employee, director consultant or independent contractor of any Acquired Entity
(or their beneficiaries) has any present or future right to benefits or payments and with respect
to which any Acquired Entity has or may have any liability or obligation (collectively, the
“Benefit Plans”). No Acquired Entity has ever contributed to, has ever had (or currently
has) any obligation to contribute to, or has any actual or potential liability with respect to, any
multiemployer plan (as defined in Section 3(37) of ERISA) or any defined benefit plan (as defined
in Section 3(35) of ERISA). No Acquired Entity maintains, sponsors, contributes to, has any
obligation to contribute to, or has any liability or potential liability with respect to any
employee welfare benefit plan which provides health, accident or life insurance, or other
welfare-type benefits to current or future retired or terminated directors, officers, or employees,
their spouses, or their dependents, other than in accordance with the requirements of Part 6 of
Subtitle B of Title I of ERISA and Section 4980B of the Code and any similar state Law
(“COBRA”). For purposes of this Section 4.17, the “Acquired Entity” shall
be deemed to include any Subsidiary of any Acquired Entity and any entity required to be

15

 

aggregated
in a controlled group or affiliated service group with any Acquired Entity for purposes of ERISA or
the Code (including, without limitation, under Section 414(b), (c), (m) or (o) of the Code or
Section 4001 ERISA), at any relevant time.

          (b) Except as set forth on Schedule 4.17, the Benefit Plans (and related trusts,
insurance Contracts, and funds) have been maintained, funded, and administered in accordance with
the terms of each Benefit Plan and any applicable collective bargaining agreements, and the Benefit
Plans comply in form and in operation in all respects with their respective terms and, to the
Knowledge of the Acquired Entities, with all applicable Laws, including ERISA and the Code, except
for any such failure to comply that has not resulted in and which will not result in, either
individually or, in the case of a series of related failures to comply, in the aggregate, a Loss to
the Acquired Entities in excess of $20,000 or an award of non-monetary relief. Except as set forth
on Schedule 4.17, each Benefit Plan that is intended to meet the requirements of a
“qualified plan” under Section 401(a) of the Code (1) is based on a master and prototype plan which
is the subject of a favorable opinion letter from the Internal Revenue Service as to the qualified
status of such plan under the Code, and nothing has occurred since the date of such opinion letter
that could adversely affect the qualification of such Benefit Plan or (2) is subject of a favorable
determination letter from the Internal Revenue Service as to the qualified status of such Benefit
Plan under the Code, and nothing has occurred since the date of such determination letter that
could adversely affect the qualification of such Benefit Plan.

          (c) All required reports and descriptions (including Form 5500 Annual Reports, Summary Annual
Reports, and summary plan descriptions) with respect to the Benefit Plans have been properly and
timely filed with the appropriate government agency and, to the extent required by ERISA and the
Code, distributed to participants. Each Acquired Entity has complied in all respects with the
requirements of COBRA, except for any such failure to comply that has not resulted in and
which will not result in, either individually or, in the case of a series of related failures to
comply, in the aggregate, a Loss to the Acquired Entities in excess of $20,000 or an award of
non-monetary relief.

          (d) With respect to each Benefit Plan, all contributions which are due (including all employer
contributions and employee salary reduction contributions) have been paid to such Benefit Plan
within the time periods prescribed by ERISA and the Code, all contributions for prior plan years
which are not yet due and with respect to the current plan year for the period ending on the
Closing Date have been made or accrued in accordance with GAAP, and, with respect to the employee
welfare benefit plans, all premiums or other payments which are due on or before the Closing Date
have been paid. Except as set forth on Schedule 4.17(d), none of the Benefit Plans has any
unfunded liabilities which are not reflected on the Latest Balance Sheet.

          (e) No Acquired Entity has any liability or potential liability to the Pension Benefit
Guaranty Corporation, the Internal Revenue Service, any multiemployer plan, the Department of Labor
or any participant or beneficiary or otherwise with respect to any employee pension benefit plan
currently or previously maintained by any entity, which together with such Acquired Entity would be
deemed to be part of a “controlled group” within the meaning of subsections (b), (c), (m)
or (o) of Section 414 of the Code.

          (f) With respect to each Benefit Plan, (i) there have been no prohibited transactions as
defined in Section 406 of ERISA or Section 4975 of the Code, (ii) no fiduciary (as defined in
Section 3(21) of ERISA) has any liability for breach of fiduciary duty or any other failure to act
or comply in connection with the administration or investment of the assets of such plans, and
(iii) no Proceedings (other than routine claims for benefits) are pending or, to the Knowledge of
the Acquired Entities threatened. No asset of any Acquired Entity is subject to any lien under
ERISA or the Code.

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          (g) With respect to each Benefit Plan, Sellers have furnished to Buyer true and complete
copies of (i) the plan documents and summary plan descriptions, (ii) the most recent determination
letter received from the Internal Revenue Service, if any, (iii) the Form 5500 Annual Report
(including all schedules and other attachments) for the last three plan years, and (iv) all related
trust agreements, insurance Contracts or other funding agreements which implement such plans.

          (h) None of the Benefit Plans obligates any Acquired Entity to pay any separation, severance,
termination or similar benefit solely as a result of any transaction contemplated by this Agreement
or solely as a result of a change in control or ownership within the meaning of Section 280G of the
Code.

          (i) Each Person providing services to any Acquired Entity who has been classified by such
Acquired Entity as an “independent contractor” has been appropriately classified as such, and there
is no fact or circumstances that could reasonably be expected to result in any liability or series
of related liabilities in excess of $20,000 with respect to any such Person under any Employee
Benefit Plan, by reclassification as an employee or otherwise.

     4.18 Insurance. Schedule 4.18 attached hereto lists all insurance policies maintained by or on behalf
of each Acquired Entity, including self-insurance or co-insurance programs and those which pertain
to its employees, officers, directors, properties, assets and business, together with a claims
history for the past three years. All of such insurance policies are in full force and effect, all
premiums have been paid in accordance with the terms of such policy, no Acquired Entity is in
breach or default with respect to its
obligations under any such insurance policies and neither the Acquired Entities nor Sellers
have received any written or, to the Knowledge of the Acquired Entities, oral notice of
cancellation of any such insurance policies. No Acquired Entity has any self-insurance or
co-insurance programs.

     4.19 Officers and Directors; Bank Accounts.
Schedule 4.19 attached hereto lists all officers and directors of each Acquired
Entity, and the account numbers and names of each bank, broker, or other depository institution at
which any of the Acquired Entities maintains a bank account, depository account or lockbox
(designating each authorized signatory).

     4.20 Affiliate Transactions.
Except as disclosed on Schedule 4.20 attached hereto and except for employment
arrangements set forth on Schedule 4.12(a), no employee, officer, director, shareholder
(including any Seller) or Affiliate of any Acquired Entity or any individual related by marriage or
adoption to any such Person or any entity in which any such Person owns any beneficial interest
(collectively, the “Insiders”) is a party to Contract, commitment or transaction with any
Acquired Entity or that pertains to the business of any Acquired Entity or has any interest in any
assets or property, real or personal or mixed, tangible or intangible, used in or pertaining to the
business of any Acquired Entity.

     4.21 Compliance with Laws.
Except as set forth on Schedule 4.21, to the Knowledge of the Acquired Entities, each
Acquired Entity has complied and is in compliance in all respects with all applicable Laws and
Orders which affect the business, business practices (including such Acquired Entity’s marketing,
sales and furnishing of its services) or any owned or leased real or personal properties of such
Acquired Entity and to which such Acquired Entity may be subject, except for any such failure to
comply that has not resulted in and which will not result in, either individually or, in the case
of a series of related failures to comply, in the aggregate, a Loss to the Acquired Entities in
excess of $20,000 or an award of non-monetary relief. Except with respect to the Proceedings
listed on Schedule 4.14, neither the Acquired Entities nor any Seller has received any
written notice alleging a violation of any such Laws or Orders.

     4.22 Environmental and Safety Matters.

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          (a) Except as set forth on Schedule 4.22 attached hereto, to the Knowledge of the
Acquired Entities, the Acquired Entities and their respective Affiliates and predecessors have
complied, and are in compliance, in all respects with all Environmental and Safety Requirements,
except for any such failure to comply that has not resulted in and which will not result in, either
individually or, in the case of a series of related failures to comply, in the aggregate, a Loss to
the Acquired Entities in excess of $20,000 or an award of non-monetary relief.

          (b) None of the Acquired Entities or their respective Affiliates or predecessors has received
any written or, to the Acquired Entities’ Knowledge, oral notice, report or other information
regarding any actual or alleged violation of Environmental and Safety Requirements, or any
liabilities (whether accrued, absolute, contingent, unliquidated or otherwise), including any
investigatory, remedial or corrective obligations, relating to any of them or their facilities
arising under Environmental and Safety Requirements.

          (c) Except as set forth on Schedule 4.22, none of the following exists at any property
or facility owned, occupied or operated by any Acquired Entity: (i) underground storage tanks; (ii)
asbestos containing material in any form or condition; (iii) materials or equipment containing
polychlorinated biphenyls; (iv) monitoring wells; or (v) surface impoundments landfills, or other
disposal areas.

          (d) Except as set forth on Schedule 4.22, none of the Acquired Entities or their
respective Affiliates or predecessors has treated, stored, disposed of, arranged for or permitted
the disposal of, transported, handled, manufactured, exposed any person to or released any
substance, including without limitation any hazardous substance, or owned or operated any property
or facility (and no such property or facility is contaminated by any such substance) in a manner
that has given or would give rise to liabilities of Buyer or the Acquired Entities, including any
liability for response costs, corrective action costs, personal injury, property damage, natural
resources damages or attorney fees, pursuant to the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended or the Solid Waste Disposal Act, as amended or
any other Environmental and Safety Requirements.

          (e) To the Knowledge of the Acquired Entities, no facts, events or conditions relating to the
past or present facilities, properties or operations of the Acquired Entities or their respective
Affiliates or predecessors will prevent, hinder or limit continued compliance with Environmental
and Safety Requirements, give rise to any investigatory, remedial or corrective obligations
pursuant to Environmental and Safety Requirements, or give rise to any other liabilities (whether
accrued, absolute, contingent, unliquidated or otherwise) pursuant to Environmental and Safety
Requirements, including without limitation any relating to onsite or offsite releases or threatened
releases of hazardous or otherwise regulated materials, substances or wastes, personal injury,
property damage or natural resources damage.

          (f) Except for the removal in 1998 of four underground storage tanks from the Acquired
Entities’ property located at 1221 North Niagara, Saginaw, Michigan, 48602, none of the Acquired
Entities or their respective Affiliates or predecessors has assumed or undertaken or otherwise
become subject to any liability, including without limitation any obligation for corrective or
remedial action, of any other Person arising under Environmental and Safety Requirements.

          (g) Sellers have furnished to Buyer all environmental audits, reports and other material
environmental documents relating to the Acquired Entities and their respective Affiliates and
predecessors or any of their facilities, which are in the their possession, custody or control.

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     4.23 [Reserved].

     4.24 Employees. Except as set forth in Schedule 4.24 attached hereto, with respect to the Acquired
Entities:

          (a) none of the Acquired Entities has been nor is it a party to or bound by any collective
bargaining agreement or relationship with any labor organization;

          (b) to the Knowledge of the Acquired Entities, no executive or key employee has any present
intention to terminate their employment with any Acquired Entity;

          (c) no labor organization or group of employees has filed any representation petition or made
any written or oral demand for recognition;

          (d) no union organizing or decertification efforts are underway or, to the Knowledge of the
Acquired Entities, threatened;

          (e) no labor strike, work stoppage, slowdown or other material labor dispute has occurred, and
none is underway or, to the Knowledge of the Acquired Entities, threatened;

          (f) there is no workers compensation liability, experience or matter related to worker
compensation liability that has resulted in or will result in, either individually or, in the case
of a series of related matters, in the aggregate, a Loss to the Acquired Entities in excess of
$20,000 or an award of non-monetary relief;

          (g) there is no employment related charge, complaint, grievance, investigation, inquiry or
obligation of any kind, pending or, to the Knowledge of the Acquired Entities, threatened in any
forum, relating to an alleged violation or breach by Sellers in respect of the Acquired Entities or
the Acquired Entities (or their officers, directors, employees or agents) of any Law or Contract,
except for any such violations or breaches that have not resulted in and which will not result in,
either individually or, in the case of a series of related violations and/or breaches, in the
aggregate, a Loss to the Acquired Entities in excess of $20,000 or an award of non-monetary relief;

          (h) there are no controversies, disputes or claims pending or, to the Knowledge of the
Acquired Entities, threatened between any Acquired Entity on the one hand and any current or former
employee, agent or independent contractor (or representative thereof) on the other which have
resulted in or will result in, either individually or, in the case of a series of related matters,
in the aggregate, a Loss to the Acquired Entities in excess of $20,000 or an award of non-monetary
relief; and

          (i) to the Knowledge of the Acquired Entities, each Acquired Entity is in compliance with all
applicable Laws respecting employment, employment practices, labor, terms and conditions of
employment and wages and hours and payment of all federal, state and local payroll and other
employment related Taxes or withholdings, except for any such failure to comply that has not
resulted in and which will not result in, either individually or, in the case of a series of
related failures to comply, in the aggregate, a Loss to the Acquired Entities in excess of $20,000
or an award of non-monetary relief. No Acquired Entity has implemented any plant closing or layoff
of employees that would implicate the WARN Act.

     4.25 Powers of Attorney.
There are no outstanding powers of attorney executed on behalf of any Acquired Entity outside
of the Ordinary Course of Business.

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     4.26 Indebtedness. The amount of Indebtedness (as defined in Article XI) included as a reduction to the
Cash Portion of the Purchase Price at Closing represents all Indebtedness obligations of the
Acquired Entities (including any liabilities treated as “Indebtedness” under Section 1.5
hereof).

     4.27 Customers and Suppliers.

          (a) Schedule 4.27(a) sets forth (i) a list of the ten largest independent contractors
or groups of related independent contractors (based upon the number of trucks or other vehicles in
such
Person’s or group’s fleet used in the businesses of the Acquired Entities) for each of the
twelve month periods ended December 31, 2005 and December 31, 2004, and the number of trucks or
other vehicles in such Person’s or group’s fleet used in the business of the Acquired Entities for
each such period.

          (b) Schedule 4.27(b) sets forth a list of the fifteen (15) largest customers of the
Acquired Entities (based upon combined revenue attributable to each such customer) for each of the
twelve month periods ended December 31, 2005 and December 31, 2004 and the aggregate amount of
revenues attributable to such customer for each such period.

          (c) Schedule 4.27(c) sets forth a list of the ten (10) largest third party carriers
providing trucking services to the Acquired Entities (i.e., providers of “outside power”) (based
upon aggregate payments made by the Acquired Entities to each such Person) for each of the
twelve-month periods ended December 31, 2005 and December 31, 2004 and the aggregate amount of
payments made by the Acquired Entities to each such Person for each such period.

          (d) Schedule 4.27(b) sets forth a list of the ten (10) largest agents of the Acquired
Entities (based upon combined revenue attributable to each such agent) for each of the twelve month
periods ended December 31, 2005 and December 31, 2004 and the aggregate amount of revenues
attributable to such agent for each such period.

          (e) With respect to the Persons listed on Schedule 4.27(a), Schedule 4.27(b),
Schedule 4.27(c) and Schedule 4.27(d), no Acquired Entity has received any written
or, to the Knowledge of the Acquired Entities, oral communications from any such Person indicating
that, and none of the Acquired Entities have any Knowledge that, such Person will discontinue or
materially alter its relationship with any Acquired Entity, whether by reason of the transactions
contemplated hereby or otherwise.

     4.28 Cash. Since December 31, 2005, none of the Acquired Entities have, and Sellers have not caused or
otherwise permitted any of the Acquired Entities to, issue any Equity Interests or redeem or
repurchase, directly or indirectly, or pay, make or declare any dividends or other distributions in
respect of, any shares of its capital stock or other Equity Interests, make any payment in respect
of any Indebtedness owed to any Insider (whether principal, interest or otherwise) or pay any
bonuses (other than the Transaction Bonuses payable at Closing) or otherwise remove any cash or
other assets from the Acquired Entities for the benefit of any Insider, other than (i) payment of
normal salaries and expense reimbursements in the Ordinary Course of Business, (ii) as expressly
set forth on Schedule 4.28 and (iii) intercompany transfers among the Acquired Entities.

ARTICLE V

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO SELLERS

     As a material inducement to Buyer to enter into this Agreement and consummate the transactions
contemplated hereby, each Seller, severally and not jointly, represents and warrants to Buyer that:

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     5.1 Residency. Such Seller is a resident of the State of Maine.

     5.2 Authorization.

          (a) Such Seller has full power, authority and legal capacity to enter into this Agreement and
all other agreements contemplated hereby to which such Seller is a party and to perform his
obligations hereunder and thereunder.

          (b) This Agreement and all other agreements contemplated hereby to which such Seller is a
party have been duly and validly executed and delivered by such Seller and constitute the valid and
binding agreements of such Seller, enforceable in accordance with their respective terms, except as
enforceability hereof or thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other Laws affecting creditors’ rights generally and limitations on the availability
of equitable remedies.

     5.3 Absence of Conflicts.
The execution, delivery and performance by such Seller of this Agreement and the other
agreements contemplated hereby to which such Seller is a party, do not and will not (a) conflict
with or result in a breach of any of the provisions of, (b) constitute a default under, (c) result
in the violation of, (d) give any third party the right to terminate or to accelerate any
obligation under, (e) result in the creation of any Encumbrance upon the Securities owned by such
Seller, or (f) require any authorization, consent, approval, exemption or other action by or notice
to any Governmental Entity, under the provisions of any Contract to which such Seller is bound or
affected, or any Law or Order to which such Seller is subject, other than any applicable filings
and notices under the HSR Act.

     5.4 Brokerage. There are no claims or liability for brokerage commissions, finders’ fees or similar
compensation in connection with the transactions contemplated by this Agreement based on any
arrangement or agreement made by or on behalf of such Seller.

     5.5 Securities.

          (a) Such Seller holds of record and owns beneficially the Securities set forth opposite such
Seller’s name on Schedule 4.3, and at the Closing such Seller will transfer to Buyer good
and marketable title to such Securities, in each case free and clear of any Encumbrances (other
than any restrictions under the Securities Act and applicable state securities Laws), options,
rights, calls, commitments, proxies or other Contract rights). Such Seller is not a party to any
option, right, agreement, call, put or other Contract providing for the disposition or acquisition
of any Securities (other than this Agreement). Such Seller is not a party to any voting trust,
proxy or other Contract or understanding with respect to the voting of any Securities.

          (b) Such Seller (i) understands that such Seller’s Seller Note has not been, and will not be,
registered under the Securities Act, or under any state securities Laws, and is being offered and
sold in reliance upon federal and state exemptions for transactions not involving any public
offering, (ii) is acquiring such Seller’s Seller Note solely for his own account for investment
purposes, and not with a view to the distribution thereof, (iii) is able to bear the economic risk
and lack of liquidity inherent in holding such Seller’s Seller Note, and (iv) is an “accredited
investor” as such term is defined in Regulation D promulgated under the Securities Act.

     5.6 Litigation. There are no Proceedings pending or, to such Seller’s knowledge, threatened against or
affecting such Seller at law or in equity, or before or by any Governmental Entity, which would
adversely affect such Seller’s performance under this Agreement and the other agreements
contemplated hereby to which such Seller is party or the consummation of the transactions
contemplated hereby or thereby.

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ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF BUYER

     As a material inducement to the Sellers to enter into this Agreement and consummate the
transactions contemplated hereby, Buyer represents and warrants to Sellers that:

     6.1 Organization.

     Buyer is a corporation duly organized, validly existing and in good standing under the Laws of
the State of Delaware. Buyer has obtained and currently maintains all qualifications to do
business as a foreign corporation in all other jurisdictions in which the character of Buyer’s
properties or the nature of Buyer’s activities require it to be so qualified. Buyer is not in
default under or in violation of any provision of its certificate of incorporation or by-laws.

     6.2 Authorization.

          (a) Buyer has full corporate power and authority to execute and deliver this Agreement and all
other agreements contemplated hereby to which it is a party and to consummate the transactions
contemplated hereby and thereby. The board of directors of Buyer has duly and validly authorized
and approved the execution, delivery and performance by Buyer of this Agreement and all other
agreements contemplated hereby to which it is a party and no other corporate proceedings on the
part of Buyer is necessary to authorize and approve any such execution, delivery or performance.

          (b) This Agreement and all other agreements contemplated hereby to which Buyer is a party have
been duly and validly executed and delivered by Buyer and constitute the valid and binding
agreements of Buyer, enforceable against Buyer in accordance with their respective terms, except as
enforceability hereof or thereof may be limited by bankruptcy, insolvency, reorganization,
moratorium or other Laws affecting creditors’ rights generally and limitations on the availability
of equitable remedies.

     6.3 Absence of Conflicts. Except as set forth on Schedule 6.3, the execution, delivery and performance by Buyer
of this Agreement and the other agreements contemplated hereby to which Buyer is a party does not
and will not (a) conflict with or result in any breach of any of the provisions of, (b) constitute
a default under, (c) result in a violation of, (d) give any third party the right to terminate or
to accelerate any obligation under, or (e) require any authorization, consent, approval, exemption
or other action by or notice to any Governmental Entity under, the provisions of the certificate of
incorporation or by-laws of Buyer or any Permit or Contract by which Buyer is bound or affected, or
any Order or Law to which Buyer is subject, other than any applicable filings and notices under the
HSR Act.

     6.4 Litigation.
There are no Proceedings pending or, to Buyer’s knowledge, threatened against or affecting
Buyer at law or in equity, or before or by any Governmental Entity, which would adversely affect
Buyer’s
performance under this Agreement and the other agreements contemplated hereby to which Buyer
is a party or the consummation of the transactions contemplated hereby or thereby.

     6.5 Brokerage.
Buyer has no liability to pay any fees or commissions to any broker or finder with respect to
the transactions contemplated by this Agreement for which Sellers could become liable or obligated.
For the avoidance of doubt, Buyer shall be responsible for the payment of any fee payable to Ahern
& Associates, LTD at the Closing under that certain Retainer / Fee Agreement, dated December 19,
2005, between Thayer Capital Partners and Ahern & Associates, LTD. and any other agreement entered
into between Thayer Capital Partners and Ahern & Associates LTD in connection with the consummation
of the transactions contemplated hereby.

     6.6 Securities Matters. Buyer understands that the offering and sale of the
Securities hereunder is intended to be
exempt from the registration requirements of the Securities Act. The

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Securities are being acquired
by Buyer for its own account and without a view to the public distribution of the Securities or any
interest therein in violation of any federal or state securities laws. Buyer has sufficient
knowledge and experience in financial and business matters so as to be capable of evaluating the
merits and risks of its investment in the Securities, and Buyer is capable of bearing the economic
risks of such investment, including a complete loss of its investment in the Securities. In
evaluating the suitability of an investment in the Securities, Buyer has relied solely upon the
representations, warranties, covenants and agreements made by Sellers and the Acquired Entities
herein and Buyer has not relied on any other representations or other information (whether oral or
written and including any projections or supplemental data) made or supplied by or on behalf of
Sellers or the Acquired Entities or any of their Affiliates, employees, agents or other
representatives. Buyer understands and agrees that it may not sell or dispose of any of the
Securities other than pursuant to a registered offering or in a transaction exempt from the
registration requirements of the Securities Act.

ARTICLE VII

[RESERVED]

ARTICLE VIII

INDEMNIFICATION AND RELATED MATTERS

     8.1 Survival.
Subject to Section 8.2(c)(iii), all representations, warranties, covenants and
agreements set forth in this Agreement, or in any writing delivered in connection with this
Agreement or the transactions contemplated by this Agreement shall survive the Closing.

     8.2 Indemnification.

          (a) Indemnification of Buyer Group. Sellers agree to indemnify Buyer, its Affiliates
(including, following the Closing, the Acquired Entities) and their respective officers, directors,
employees, stockholders, agents, attorneys, representatives, successors and permitted assigns (the
“Buyer Group”) and hold them harmless from and against any loss, liability, cost, damage,
judgment, diminution in value, Tax, penalty, fine or expense, whether or not arising out of third
party claims (including interest, penalties, reasonable attorneys’ fees and expenses and all
amounts paid in investigation, defense or settlement of any of the foregoing and the enforcement of
any rights hereunder) (a “Loss”) which the Buyer Group suffers, sustains or becomes subject
to, as a result of:

          (i) the breach by any Seller or any Acquired Entity of any representation or warranty
made by any Seller or any Acquired Entity contained in this Agreement, any schedule or
exhibit hereto or any certificate delivered by or on behalf of Sellers and/or the Acquired
Entities to Buyer in connection with the Closing;

          (ii) the breach by any Seller of any covenant or agreement made by any Seller contained
in this Agreement, any schedule or exhibit hereto or any certificate delivered by or on
behalf of Sellers to Buyer in connection with the Closing;

          (iii) the breach by any of the Acquired Entities of any covenant or agreement to be
performed by the Acquired Entities prior to or at the Closing made by the Acquired Entities
in this Agreement, any schedule or exhibit hereto or any certificate delivered by or on
behalf the Acquired Entities to Buyer in connection with the Closing;

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          (iv) subject to Section 8.2(f)(i) and Section 8.2(i) hereof, any Losses
arising out of (A) workers compensation claims in respect of injuries occurring prior to the
Closing or arising out of any accident which occurs prior to the Closing, (B) accident or
other incident which occurs prior to the Closing and involves any automobile, truck,
tractor, trailer and/or other vehicle owned by, leased by, insured by and/or contracted to
any Acquired Entity (including, without limitation, any retroactive premium adjustments or
other costs attributable to any pre-Closing insurance policy of any Acquired Entity) and (C)
without duplication, any claim in respect of any damage and/or Loss to any cargo and/or
product transported by, conveyed by and/or insured by any Acquired Entity or any of its
independent contractors (whether or not covered by cargo liability insurance coverage);
and/or

          (v) any Taxes of any Acquired Entity with respect to any taxable periods (or portions
thereof) ending on or prior to the Closing Date.

Each Seller shall be responsible to the Buyer Group for paying such Seller’s Pro Rata Share of any
Losses suffered or sustained by any member of the Buyer Group. Notwithstanding the foregoing,
however, the representations, warranties, covenants and agreements contained in this Agreement that
relate specifically and solely to a particular Seller are the obligations of that particular Seller
only and the other Seller shall not be responsible therefor. This means that the particular Seller
making any such representation, warranty, covenant or agreement contained in this Agreement shall
be solely responsible for any Losses the Buyer Group may suffer as a result of any breach or
nonfulfillment of any such representations, warranties, covenants and agreements by such Seller.

          (b) Indemnification of Sellers. Buyer agrees to indemnify Sellers and their
respective Affiliates (excluding, following the Closing, the Acquired Entities), officers,
directors, employees, stockholders, agents, attorneys, representatives, successors and permitted
assigns (the “Seller Group”) and hold the Seller Group harmless from and against any Loss
which Sellers suffer, sustain or become subject to, as the result of:

          (i) the breach of any representation or warranty made by Buyer contained in this
Agreement, any schedule or exhibit hereto or any certificate delivered by or on behalf of
Buyer in connection with the Closing; and/or

          (ii) the breach of any covenant or agreement made by Buyer contained in this Agreement,
any schedule or exhibit hereto or any certificate delivered by or on behalf of Buyer in
connection with the Closing.

          (c) Limits on Indemnity; Other Matters.

          (i) With respect to claims for breaches of representations and warranties referred to
in Section 8.2(a)(i) and/or claims under Section 8.2(a)(iv) above: (A)
Sellers shall not be liable to the Buyer Group for any individual Loss or series of related
Losses arising out of the same or similar facts, events or circumstances of less than
$20,000 (the “Mini-Basket”), provided that if any such individual Loss or series of
related Losses arising out of the same or similar facts, events or circumstances are in
excess of the Mini-Basket, all such Losses (including the Losses which would otherwise be
subject to the Mini-Basket) shall be fully recoverable, subject to the limitations set forth
in clauses (B) and (C) hereof; (B) Sellers will be liable to the Buyer Group for Losses
arising therefrom only if the aggregate amount of all such Losses resulting to the Buyer
Group from all such breaches or claims exceeds $250,000 (the “Basket”) in the
aggregate, in which case Sellers will be liable for all such Losses in excess of the Basket;
and (C) Sellers shall not be liable to the Buyer Group to the extent such Losses exceed
$6,000,000 (the “Cap”);

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provided that the foregoing limitations
(i.e., Mini-Basket, Basket and Cap) shall not apply in respect of any Loss with respect to
the breach by Sellers and/or the Acquired Entities of the Fundamental Seller
Representations. Notwithstanding any provision in this Agreement to the contrary, Buyer
acknowledges and agrees that Sellers shall not be liable to the Buyer Group for Losses
solely to the extent arising from breaches of the representations and warranties set forth
in Section 4.7 to the extent such Losses exceed $3,000,000 (the “Undisclosed
Liabilities Cap”); it being understood and agreed, however, that (x) if Sellers and/or
the Acquired Entities have breached any other representation, warranty, covenant or
agreement in respect of any particular Loss, or such Loss is otherwise indemnifiable under
Sections 8.2(a)(ii) through (v), then such Loss shall not count against the
Undisclosed Liabilities Cap and (y) for the avoidance of doubt, the aggregate amount of
Losses for which the Sellers will be liable to the Buyer Group with respect to breaches of
representations and warranties referred to in Section 8.2(a)(i) (other than the
Fundamental Seller Representations (which are not subject to the Mini-Basket, Basket and
Cap), but including Section 4.7 (whether or not the Undisclosed Liabilities Cap has
been reached)) and claims under Section 8.2(a)(iv) above shall in no event exceed
the Cap.

          (ii) With respect to claims for breaches of representations and warranties referred to
in Section 8.2(b)(i) above: (A) Buyer will be liable to the Seller Group for Losses
arising therefrom only if the aggregate amount of all such Losses resulting to the Seller
Group from all such breaches or claims exceeds, in the aggregate, $250,000 (the “Buyer
Basket”), in which case Buyer will be liable for all such Losses in excess of the Buyer
Basket; and (B) Buyer shall not be liable to the Seller Group to the extent such Losses
exceed $6,000,000 (the “Buyer Cap”); provided that the foregoing
limitations (i.e., the Buyer Basket and Buyer Cap) shall not apply in respect of any Loss
with respect to the breach by Buyer of the Fundamental Buyer Representations.

          (iii) No Person shall be entitled to recover for any Loss pursuant to Section
8.2(a)(i) or Section 8.2(b)(i) unless written notice of a claim thereof is
delivered to the Indemnifying Party prior to the Applicable Limitation Date (in which case,
for the avoidance of doubt, such claim shall survive until the claim for indemnification and the matter upon
which such claim for indemnification was brought have been finally resolved and, for a claim
timely brought, the Losses indemnifiable hereunder shall include both those suffered prior
to and after such Applicable Limitation Date). For purposes of this Section
8.2(c)(iii), the term “Applicable Limitation Date” shall mean the eighteen (18)
month anniversary of the Closing Date; provided that with respect to any Loss arising from
or relating to a breach of any Fundamental Seller Representation or any Fundamental Buyer
Representation, the Applicable Limitation Date shall be the 30th day after the
expiration of the applicable statute of limitations (including any extension thereto to the
extent such statute of limitations may be tolled).

          (iv) No Person shall be entitled to recover for any Loss pursuant to Section
8.2(a)(i), in the case of the Buyer Group, or Section 8.2(b)(i), in the case of
the Seller Group, if and to the extent such Person had knowledge prior to the Closing that
the particular representation or warranty made by the other party(ies) under which recovery
for such Loss is sought was breached. For purposes hereof, as applied to Buyer Group, the
term “knowledge” means the actual knowledge (without any investigation or inquiry (and shall
in no event encompass constructive, imputed or similar concepts of knowledge)) of the
following Persons: Scott Rued, Dan Moorse and Kurt Rasmussen.

          (v) For the avoidance of doubt, and notwithstanding anything to the contrary herein,
the limitations on recovery set forth in this Section 8.2(c) above shall not apply
to, and shall in no way limit or restrict any Person’s right to maintain a claim for and/or
recover any

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amounts in connection with, any claim for indemnification pursuant to
Sections 8.2(a)(ii), 8.2(a)(iii), 8.2(a)(v) or 8.2(b)(ii).

          (d) Procedures. If a party hereto seeks indemnification under this Section
8.2, such party (the “Indemnified Party”) shall give written notice to the other party
(the “Indemnifying Party”) of the facts and circumstances giving rise to the claim. In
that regard, if any suit, action, claim, liability or obligation is brought or asserted by any
third party which, if adversely determined, would entitle the Indemnified Party to indemnity
pursuant to this Section 8.2, the Indemnified Party shall promptly notify the Indemnifying
Party of the same in writing, specifying in reasonable detail the basis of such claim and the facts
pertaining thereto and the Indemnifying Party, if it so elects (except that the Indemnifying Party
may not so elect without the Indemnified Party’s consent unless (i) the Indemnifying Party
acknowledges in writing its obligation to indemnify the Indemnified Party to the extent required
under this ARTICLE VIII, (ii) the Indemnifying Party provides reasonable evidence to the
Indemnified Party of its financial ability to satisfy its indemnification obligations, (iii) the
suit, action, claim, liability or obligation does not seek to impose any liability or obligation
upon the Indemnified Party other than for money damages, (iv) such suit, claim or action involves
aggregate Losses that are reasonably expected to be less than the maximum amount for which such
Indemnifying Party could be liable under this ARTICLE VIII and (v) such suit, action,
claim, liability or obligation does not relate to the Indemnified Party’s relationship with its
customers, suppliers or employees) shall assume and control the defense thereof (and shall consult
with the Indemnified Party with respect thereto), including the employment of counsel reasonably
satisfactory to the Indemnified Party and the payment of expenses. If the Indemnifying Party
elects to assume and control the defense, the Indemnified Party shall have the right to employ
counsel separate from counsel employed by the Indemnifying Party in any such action and to
participate in the defense thereof, but the fees and expenses of such counsel employed by the
Indemnified Party shall be at the expense of the Indemnified Party unless (y) the employment
thereof has been specifically authorized by the Indemnifying Party in writing or (z) the
Indemnifying Party has failed to assume the defense and employ counsel. The Indemnifying Party
shall not be liable for any settlement of any action or proceeding, the defense of which it has
elected to assume, which settlement is effected without the written consent of the Indemnifying
Party. If there shall be a settlement to which the Indemnifying Party
consents or a final judgment for the plaintiff in any action or proceeding, the Indemnifying
Party shall indemnify and hold harmless the Indemnified Party from and against any Loss by reason
of such settlement or judgment in accordance with this ARTICLE VIII.

          (e) Offset. Subject to the terms and conditions set forth in this Section
8.2, in the event that a party is finally determined to be entitled to indemnification for any
Losses pursuant to this Section 8.2, then such Indemnified Party may, at its option, setoff
all or any portion of such Losses against any amounts due or to become due to the Indemnifying
Party, whether pursuant to this Agreement or otherwise (including under any Seller Note).

          (f) Insurance and Tax Benefits. Any payment made under this ARTICLE VIII in
respect of any indemnification claim (i) shall be reduced by any insurance proceeds realized by and
paid to the Indemnified Party in respect of such claim (determined after giving effect to any
increase in premiums resulting therefrom), provided that if a member of the Buyer Group is the
Indemnified Party, this clause (i) shall be limited to any insurance proceeds realized by and paid
to the Acquired Entities in respect of such claim under the insurance policies listed on
Schedule 4.18), and (ii) shall be reduced by an amount equal to any net Tax benefits
attributable to such claim, but only to the extent that such Tax benefits are actually realized by
the Indemnified Party or by any consolidated, combined or unitary group of which the Indemnified
Party is a member, in the Tax year (or the immediately succeeding Tax year) in which such Losses
were incurred. The Indemnified Party shall use its commercially reasonable efforts to make
insurance claims relating to any claim for which it is seeking indemnification pursuant to this
Section 8.2(f).

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          (g) Certain Releases.

          (i) Effective upon the Closing, each Seller hereby irrevocably waives, releases and
discharges forever the Acquired Entities from any and all liabilities and obligations to
such Seller of any kind or nature whatsoever, whether in its capacity as a Seller hereunder,
as a stockholder, officer or director of any Acquired Entity or otherwise (including,
without limitation, in respect of rights of contribution or indemnification) as to facts,
conditions, transactions, events or circumstances prior to the Closing Date; provided, that
this Section 8.2(g)(i) (x) is not intended to affect the remedies available against
Buyer hereunder or under any employment arrangements commencing as of the Closing Date and
(y) subject to Section 9.11, shall not apply to rights of indemnification from the
Acquired Entities under the Acquired Entities’ organizational documents held by any such
Seller unless, in any such case, such indemnification, obligation or liability arises from
or relates to a breach by any Seller of, or is otherwise covered by, a representation,
warranty, covenant, agreement or indemnity under this Agreement, the schedules hereto and/or
any certificate delivered by any Seller to Buyer with respect thereto in connection with the
Closing (without regard to time limitations set forth herein).

          (ii) Effective upon the Closing, except for claims or causes of action brought under
this Agreement, each of the Buyer and the Acquired Entities hereby irrevocably waives,
releases and discharges forever each of the Sellers from any and all liabilities and
obligations to Buyer or such Acquired Entity of any kind or nature arising out of or
relating to facts, conditions, transactions, events or circumstances prior to the Closing
Date to the extent related to the Acquired Entities; provided, however, that this
Section 8.2(g)(ii) will not be construed to release any of the Sellers (1) from his
obligations under this Agreement or the Exhibits hereto (including, without limitation, any
indemnification obligations hereunder) and (2) from any claims or causes of actions based
upon intentional misrepresentation, fraud or deceit.

          (h) Fraud. Nothing in this Agreement shall limit or restrict any Person’s right to
maintain a claim for and/or recover any amounts in connection with any action or claim based upon
intentional misrepresentation, fraud or deceit.

          (i) DOT Claims. Notwithstanding any provision in this Agreement to the contrary,
Buyer acknowledges and agrees that Sellers shall not be liable to the Buyer Group for Losses
arising from any and all Department of Transportation (or similar federal or state authority)
claims and/or inquiries against any of the Acquired Entities of less than $200,000 in the
aggregate.

     8.3 [Reserved].

     8.4 Exclusive Remedy.
The parties hereto hereby acknowledge and agree that the indemnification rights under this
ARTICLE VIII constitute the exclusive remedy for any party for a breach of or inaccuracy in
any representation or warranty herein and any breach or nonfulfillment of any covenant or agreement
herein (other than those set forth in Sections 1.4 and 9.1), except for specific
performance, equitable relief, injunctive relief, fraud and/or intentional misrepresentation.

     8.5 Limitation on Special or Punitive Damages.
No party will be liable for special or punitive damages, regardless of whether a claim is asserted
based on tort or contract theories; provided, however, that in the case of third party claims or
claims based on intentional misrepresentation, fraud or deceit the Loss to be covered by the
indemnification provisions of this Agreement will be deemed to include all forms of relief,
monetary and otherwise (including punitive or special damages).

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     8.6 Subrogation.
Nothing in this Agreement may be construed to limit any subrogation rights, if any, that an
Indemnifying Party may have at law or equity to the extent the Indemnifying Party has made payments
to the Indemnified Party hereunder.

     8.7 Indemnity Payments as Purchase Price Adjustments.
To the greatest extent possible all indemnity payments under this ARTICLE VIII will be
treated as adjustments to the Purchase Price.

ARTICLE IX

ADDITIONAL AGREEMENTS

     9.1 Tax Matters.
The following provisions shall govern the allocation of responsibility as between Buyer and
Sellers for certain tax matters following the Closing Date:

          (a) Tax Periods Ending on or Before the Closing Date. Sellers shall prepare or cause
to be prepared and file or cause to be filed all Tax Returns for the Acquired Entities for all
periods ending on or prior to the Closing Date which are filed after the Closing Date. At least
fifteen (15) days prior to filing any Tax Return described in the preceding sentence, Sellers shall
submit a copy of such Tax Return to Buyer for Buyer’s review and approval, which approval shall not
be unreasonably withheld; provided that if Buyer has not responded to Sellers at the expiration of
such fifteen (15) day period, Buyer shall be deemed to have approved such Tax Return. Sellers
shall reimburse Buyer for Taxes of the Acquired Entities with respect to such periods within
fifteen (15) days of payment by Buyer or any Acquired Entity of such Taxes.

          (b) Tax Periods Beginning Before and Ending After the Closing Date. Buyer shall
prepare or cause to be prepared and file or cause to be filed any Tax Returns for the Acquired
Entities for Tax periods which begin before the Closing Date and end after the Closing Date.
Sellers shall pay to Buyer within fifteen (15) days of the date on which Taxes are paid with
respect to such periods an amount equal to the portion of such Taxes which relates to the portion
of such Taxable period ending on the Closing Date. For purposes of this Section 9.1(b), in
the case of any Taxes that are imposed on a periodic basis and are payable for a Taxable period
that includes (but does not end on) the Closing Date, the portion of such Taxes which relates to
the portion of such Taxable period ending on the Closing Date shall (x) in the case of any Taxes
other than Taxes based upon or related to income, be deemed to be the amount of such Tax for the
entire Taxable period multiplied by a fraction the numerator of which is the number of days in the
Taxable period ending on the Closing Date and the denominator of which is the number of days in the
entire Taxable period, and (y) in the case of any Tax based upon or related to income be deemed
equal to the amount which would be payable if the relevant Taxable period ended on the Closing
Date. All determinations necessary to give effect to the foregoing allocations shall be made in a
manner consistent with prior practice of the Acquired Entities.

          (c) Refunds. To the extent any determination of Tax liability of any of the Sellers,
whether as a result of an audit or examination, a claim for refund, the filing of an amended return
or otherwise, results in any refund of Taxes paid attributable to any period ending on or prior to
the Closing Date or the portion of a period before the Closing Date (other than a refund
attributable to any attribute arising in a taxable period other than a Pre-Closing Tax Period),
Buyer shall notify Sellers of such refund and any such refund or portion of such refund
attributable to the Pre-Closing Tax Periods, or any portion thereof, net of any Taxes imposed on
the recipient of, or entitlement to, such refund, shall belong to and be promptly remitted to
Sellers.

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          (d) Cooperation on Tax Matters. Buyer, the Acquired Entities and Sellers shall
cooperate fully, as and to the extent reasonably requested by the other party, in connection with
the filing of Tax Returns pursuant to this Section 9.1 and any audit or other Proceeding
with respect to Taxes. Such cooperation shall include the retention and (upon the other party’s
request) the provision of records and information which are reasonably relevant to any such audit
or other Proceeding and making employees available on a mutually convenient basis to provide
additional information and explanation of any material provided hereunder. Buyer will promptly
notify Sellers of the commencement of any Proceeding by any Tax authority, as well as any notice of
assessment and any notice and demand for payment, concerning any Taxes for which indemnification
may be required under this Agreement. Sellers shall control the strategy, defense and settlement
of any Proceeding relating to Taxes attributable to any Pre-Closing Tax Periods, provided that (i)
Sellers acknowledge in writing their liability under this Agreement to hold the Buyer Group
harmless against the full amount of any adjustment which may be made as a result of such
Proceeding, (ii) Sellers shall not take any position in any such Proceeding inconsistent with
past practices and positions taken by the Acquired Entities, (iii) the Buyer may participate
in any such Proceeding at its own expense and with counsel of its choosing, and (iv) if any of the
issues raised in any such Proceeding could reasonably be expected to have a material impact on
Taxes of Buyer or any Acquired Entity or any of their respective affiliates for any taxable period
ending after the Closing Date, the Sellers shall not settle or compromise any such Proceeding
without the consent of the Buyer (which consent shall not be unreasonably withheld, conditioned or
delayed). Buyer will reasonably cooperate with Sellers and cause the Acquired Entities to
reasonably cooperate with Sellers. Sellers shall promptly notify Buyer if Sellers decide not to
participate in the defense of any such Proceeding and Buyer thereupon shall be permitted (as its
own expense) to defend such Proceeding, in which event Sellers will reasonably cooperate with
Purchaser. Without the prior written consent of Sellers (not to be unreasonably withheld,
conditions or delayed), Buyer shall not cause or permit any of the Acquired Entities to file any
amended Tax Return relating to Pre-Closing Tax Periods or file any claim for a refund of Taxes
relating to Pre-Closing Tax Periods. The Acquired Entities and Sellers agree (A) to retain all
books and records with respect to Tax matters and pertinent to the Acquired Entities relating to
any Taxable period beginning before the Closing Date until the expiration of the statute of
limitations (and, to the extent notified by Buyer or Sellers, any extensions thereof) of the
respective Taxable periods, and to abide by all record retention agreements entered into with any
taxing authority, and (B) to give the other party reasonable written notice prior to transferring,
destroying or discarding any such books and records and, if the other party so requests, the
Acquired Entities or Sellers, as the case may be, shall allow the other party to take possession of
such books and records.

          (e) Tax Sharing Agreements. All tax sharing agreements or similar agreements with
respect to or involving any Acquired Entity (other than the fuel tax agreements listed on
Schedule 9.1(e)) shall be terminated as of the Closing Date and, after the Closing Date, no
Acquired Entity shall be bound thereby or have any liability thereunder.

          (f) Certain Taxes. All transfer, documentary, sales, use, stamp, registration and
other such non-income Taxes and fees (including any penalties and interest) incurred in connection
with this Agreement shall be paid by Sellers when due, and Sellers will, at their own expense, file
all necessary Tax Returns and other documentation with respect to all such transfer, documentary,
sales, use, stamp, registration and other non-income Taxes and fees, and, if required by applicable
Law, Buyer will, and will cause its Affiliates to, join in the execution of any such Tax Returns
and other documentation.

          (g) Section 338(h)(10) Election.

          (i) Each Seller will, and shall cause such Seller’s spouse (if any) to, join Buyer in
making an election under Section 338(h)(10) of the Code (and any corresponding provisions of
state, local or foreign Law) (collectively, a “Section 338(h)(10) Election”) with

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respect to the purchase and sale of the Securities. Buyer will be responsible for preparing
the Form 8023 and any other applicable forms used to make a Section 338(h)(10) Election.
Each Seller shall sign, and shall cause such Seller’s spouse (if any) to sign, and Buyer
shall sign, as required by applicable Law, at the Closing all federal and state forms used
to make a Section 338(h)(10) Election requiring his, her or its signature. Buyer and
Sellers will cooperate in good faith with each other in the preparation and timely filing of
any Tax Returns required to be filed in connection with the making of such an election,
including the exchange of information and the joint filing of Form 8023 and related
schedules. Prior to the Closing Date, each Seller shall provide to Buyer any information
(including Tax elections made by or on behalf of the Acquired Entities) reasonably requested
by Buyer in connection with its filing of a Section 338(h)(10) Election. Sellers shall pay
any Tax imposed on the Acquired Entities attributable to the making of the Section
338(h)(10) Election, including (i) any Tax imposed under Section 1374 of the Code, (ii) any
tax imposed under Treas. Reg. Section 1.338-1(d)(3), or (iii) any state, local or
foreign Tax imposed on the gain resulting from the deemed asset sale of any Acquired
Entity as a result of the Section 338(h)(10) Election.

          (ii) Buyer, the Acquired Entities and Sellers agree that the Purchase Price and the
liabilities of the Acquired Entities (plus other relevant items) will be allocated to the
assets of the Acquired Entities for all purposes (including Tax and financial accounting) in
a manner consistent with the fair market values set forth in an allocation schedule to be
prepared by the Buyer in accordance with Section 338(b)(5) of the Code. Buyer and Sellers
shall determine the fair market value of the assets of the Acquired Entities by mutual
agreement (the “Valuation”) in a manner consistent with the methodologies set forth
on Exhibit F. Buyer and the Acquired Entities will file all Tax Returns (including
amended returns and claims for refund) and information reports in a manner consistent with
the Valuation.

     9.2 Press Releases and Announcements.
From and after the date hereof, no press releases related to this Agreement and the
transactions contemplated herein, or other announcements to the employees, customers or suppliers
of any Acquired Entity will be issued without Buyer’s consent (which shall not be unreasonably
withheld).

     9.3 Further Transfers.
Sellers and the Acquired Entities will execute and deliver such further instruments of
conveyance and transfer and take such additional action as Buyer may reasonably request to effect,
consummate, confirm or evidence the transfer to Buyer of the Securities and any other transactions
contemplated hereby.

     9.4 Specific Performance.
The parties hereto hereby agree that irreparable damage would occur in the event that the
provisions of this Agreement were not performed in accordance with their specific terms.
Accordingly, it is hereby agreed that the Parties shall be entitled to seek an injunction or
injunctions or other equitable relief to enforce specifically the terms and provisions hereof in
any court of the United States or any state having jurisdiction, this being in addition to any
other remedy to which they are entitled at law or in equity.

     9.5 Investigation and Confidentiality.

          (a) Sellers will maintain the confidentiality of, and will not use for any purpose, all
proprietary and other non-public information regarding the Acquired Entities (including, without
limitation, any of same included in the Proprietary Rights), except as necessary to file Tax
Returns and other reports to Governmental Entities, and to the extent necessary to perform their
obligations as employees of Buyer, the Acquired Entities and/or any of their Affiliates. In the
event that Sellers are requested or required (by oral question or request for information or
documents in any legal proceeding,

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interrogatory, subpoena, civil investigative demand, or similar
process) to disclose any such information, Sellers 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 9.5. If, in the absence of a protective order or the receipt of
a waiver hereunder, Sellers are, on the advice of counsel, legally compelled to disclose any
information , Sellers may disclose the information; provided, however, that the disclosing Sellers
shall use commercially reasonable efforts to obtain, at the request of Buyer, an order or
other assurance that confidential treatment will be accorded to such portion of the
information required to be disclosed as Buyer shall designate. This Section 9.5 shall
survive any expiration or termination of this Agreement.

          (b) The parties hereto acknowledge and agree that in the event of a breach by any party of any
of the provisions of this Section 9.5, monetary damages may not constitute a sufficient
remedy. Consequently, in the event of any such breach, any non breaching party and/or their
respective successors or assigns may, in addition to other rights and remedies existing in their
favor, apply to any court of law or equity of competent jurisdiction for specific performance
and/or injunctive or other relief in order to enforce or prevent any violations of the provisions
hereof, in each case without the requirement of posting a bond or proving actual damages.

     9.6 Expenses.
Except as otherwise provided herein, Buyer and Sellers will pay all of their own fees, costs
and expenses (including fees, costs and expenses of legal counsel, investment bankers, brokers or
other representatives and consultants and filing fees, appraisal fees, surveys, title insurance
policies, environmental reports and other costs and expenses) incurred in connection with the
negotiation of this Agreement, the performance of its obligations hereunder, and the consummation
of the transactions contemplated hereby. Notwithstanding the foregoing each party acknowledges and
agrees that (i) Buyer shall be responsible for any fee payable to Ahern & Associates, LTD payable
in connection with the transactions contemplated hereby under any retainer or fee agreement between
Buyer or any of its pre-Closing Affiliates and Ahern & Associates, LTD and (ii) Sellers will pay
the fees, costs and expenses of the Acquired Entities and that the Acquired Entities will not pay
any of Sellers’ fees, costs and expenses (including, without limitation, legal and accounting fees,
costs and expenses) arising in connection with the transactions contemplated hereby; provided that
the Acquired Entities may pay up to $85,000 in the aggregate of the fees and expenses described in
this clause (ii). Subject to the proviso in the immediately preceding sentence, to the extent such
fees, costs and expenses are not either paid by Sellers on or prior to the Closing Date, Sellers
shall indemnify and hold harmless the Buyer Group from such fees, costs and expenses.

     9.7 Submission to Jurisdiction; Waiver of Jury Trial.
Other than with respect to actions for equitable or injunctive relief (which may be brought in
any court having proper jurisdiction), the parties hereby submit to the exclusive jurisdiction of
the United States District Court for the District of Maine and of any Maine state court located
within the geographic boundaries of Maine for purposes of legal proceedings that may arise
hereunder and the parties hereby irrevocably waive, to the fullest extent permitted by Law, any
objection that they may now have or later have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum. THE PARTIES HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY
WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY PROCEEDINGS BASED HEREON, OR
ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT.

     9.8 Books and Records.
Unless otherwise consented to in writing by Sellers or Buyer (as the case may be), Buyer and
Sellers will not, for a period of 7 years following the Closing Date, destroy, alter or otherwise
dispose of any of the books and records of any Acquired Entity acquired by Buyer hereunder or
retained by Sellers without first offering to surrender to Sellers or Buyer such books and records or any

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portion thereof of which Sellers or Buyer may intend to destroy, alter or dispose of. Buyer
and Sellers will allow the other party’s representatives, attorneys and accountants access to such books and records, upon
reasonable request and during such party’s normal business hours, for the purpose of examining and
copying the same in connection with any matter whether or not relating to or arising out of this
Agreement or the transactions contemplated hereby.

     9.9 Reserved.

     9.10 Non-Compete; Non-Solicitation.
In consideration of Buyer’s agreement to enter into this Agreement, and as a condition
thereto, each Seller covenants and agrees as follows:

          (a) For a period of six years from and after the Closing Date (the “Non-Compete
Period”), such Seller will not engage directly or indirectly in any of the businesses in which
any Acquired Entity engages as of the Closing Date anywhere in North America; provided,
however, that such Seller may own up to 5% of the outstanding equity securities of any
publicly traded Person that engages in any of such businesses; provided, further,
that such Seller may engage in any of such businesses after the Closing while employed by Buyer,
any of the Acquired Entities or any of Buyer’s Affiliates solely in such Seller’s capacity as an
employee of Buyer, the Acquired Entities and/or Buyer’s Affiliates, whether pursuant to the
applicable employment agreement attached as Exhibit D or Exhibit E or otherwise, to
the extent authorized to do so by Buyer.

          (b) during the Non-Compete Period, such Seller (i) will not, and will cause his Affiliates not
to, directly or indirectly contact or solicit for the purpose of offering employment to or hiring
(whether as an employee, consultant, agent, independent contractor or otherwise) or actually hire
any person employed by any Acquired Entity at any time during the 1-year period preceding the
Closing Date and/or during the Non-Compete Period, without the prior written consent of Buyer and
(ii) will not induce or attempt to induce any customer or other business relation of any Acquired
Entity into any business relationship which might materially harm such Acquired Entity.

          (c) If the final judgment of a court of competent jurisdiction declares that any term or
provision of this Section 9.10 is invalid or unenforceable, the parties hereto agree that
the court making the determination of invalidity or unenforceability shall have the power to reduce
the scope, duration, or area of the term or provision, to delete specific words or phrases, or to
replace any invalid or unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable term
or provision, and this Agreement shall be enforceable as so modified after the expiration of the
time within which the judgment may be appealed.

     (d) Such Seller acknowledges and agrees that in the event of a breach by such Seller of any of
the provisions of this Section 9.10, monetary damages will not constitute a sufficient
remedy. Consequently, in the event of any such breach, the Buyer Group and/or their respective
successors or assigns may, in addition to other rights and remedies existing in their favor, apply
to any court of law or equity of competent jurisdiction for specific performance and/or injunctive
or other relief in order to enforce or prevent any violations of the provisions hereof, in each
case without the requirement of posting a bond or proving actual damages.

     (e) If (i) Buyer and the Acquired Entities fail to make in full any scheduled payment of
principal or interest within 365 days after any such amount is due and payable under the Sargent
Note or the Tweedie Note (and regardless of whether prohibited from making such payment as a result
of any prohibition relating to the Senior Indebtedness (as such term is defined in the Senior
Notes)) or (ii) Buyer and the Acquired Entities fail to make in full any Contingent Payment (after
final determination thereof)

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within 365 days after any such amount is due and payable pursuant to
Section 1.4 (and regardless of whether prohibited from making such payment as a result of
any prohibition relating to the Senior Indebtedness (as such term is defined in the Senior Notes)),
then immediately upon such event, and without waiving any other rights Sellers may have under
ARTICLE VIII, Sections 9.10(a) and 9.10(b) will become immediately null and
void from and after any such payment default (after giving effect to such 365 day cure period);
provided that the foregoing shall in no event relieve any Seller from liability for any breach of
Section 9.10(a) and/or Section 9.10(b) prior to such termination. In addition, if
Buyer terminates a particular Seller’s employment with Buyer without Cause (as defined below), then
immediately upon such termination, Section 9.10(a) will become immediately null and void
with respect to such Seller from and after the date of such termination; provided that the
foregoing shall in no event relieve any Seller from liability for any breach of Section
9.10(a) prior to such termination. For purposes hereof, “Cause” means (i) the commission of a
felony or any other act or omission involving dishonesty, embezzlement, theft or fraud with respect
to Buyer or any of its post-Closing Subsidiaries (including the Acquired Entities) or any of their
customers, suppliers, agents or independent contractors, (ii) conduct tending to bring Buyer or any
of its post-Closing Subsidiaries (including the Acquired Entities) into substantial public disgrace
or disrepute (including substance abuse and sexual misconduct), (iii) substantial and repeated
failure to perform duties as reasonably directed by Buyer’s board of directors, (iv) breach of
fiduciary duty, gross negligence or willful misconduct with respect to Buyer or any of its
post-Closing Subsidiaries (including the Acquired Entities) or (v) any other material breach of any
written agreement governing the employment relationship between any such Seller and Buyer or any of
its post-Closing Subsidiaries (including the Acquired Entities). For the avoidance of doubt, the
parties hereto acknowledge and agree that nothing in this Section 9.10(e) shall be
construed to extend the Non-Compete Period beyond the six year anniversary of the Closing Date.

     9.11 Directors and Officers Indemnification.
For a period of five (5) years after the Closing Date, the Buyer and the Acquired Entities
agree not to amend or modify the director and officer indemnification provisions (if any) contained
in the certificate of incorporation and/or bylaws of any Acquired Entity in a manner that is
adverse to such covered Persons. Notwithstanding any provision herein to the contrary, Buyer and
the Acquired Entities shall have no obligation to indemnify any such covered Person (including any
Seller or any of their Affiliates) entitled to indemnification under any organizational documents
of any Acquired Entity to the extent any such claim arises from or relates to a breach by any
Seller or any Acquired Entity of, or is otherwise covered by, a representation, warranty, covenant,
agreement or indemnity under this Agreement (without regard to time limitations set forth herein).
Subject to the satisfaction of any applicable eligibility requirements, each Seller shall be
entitled to be covered by any directors’ and officers’ liability insurance policy maintained by
Buyer with respect to Buyer and the Acquired Entities during the term of such Seller’s employment
with Buyer or any of its post-Closing Subsidiaries (including the Acquired Entities), which
policy(ies) shall be on terms not materially less favorable in the aggregate to the covered
directors and officers than those set forth in the attachments to Schedule 9.11.

     9.12 Contingent Payment Covenants.

          (a) During the period commencing on the Closing Date and ending on December 31, 2009, Buyer
will, and will cause the Acquired Entities to, unless otherwise consented to by Sellers (any such
consent not to be unreasonably withheld or delayed):

          (i) account for the Acquired Entities as a separate accounting entity on a consolidated
basis;

33

 

          (ii) except as set forth in Section 9.12(b)(i), maintain the separate existence
of each Acquired Entity (provided, however, that Buyer may convert any such Acquired Entity
into a limited liability company without Sellers’ consent);

          (iii) operate the Acquired Entities in the same lines of business as the Acquired
Entities were operated prior to the Closing Date;

          (iv) refrain from permitting the sale or lease of any material capital assets of the
Acquired Entities to any third party, except for such sales or leases in the Ordinary Course
of Business;

          (v) refrain from operating the business of the Acquired Entities except in the Ordinary
Course of Business (provided, however, that Buyer may cause any Acquired Entity to, and any
Acquired Entity may (at Buyer’ direction), make such changes in the operation of the
business of any Acquired Entity that (i) are necessary to comply with applicable Law, (ii)
are necessary to comply with any Contract to which any Acquired Entity is party or subject
to, and/or (iii) are necessary or desirable to respond to changes in the market and/or
industry in which any such Acquired Entity participates);

          (vi) use commercially reasonable efforts to ensure that the Acquired Entities possess
or have access to sufficient working capital so as to operate in a manner consistent with
the operations prior to the Closing Date; and

          (vii) operate the Acquired Entities in a good faith manner such that Buyer will not
take, and will not permit the Acquired Entities to take, any action that would have the
effect of artificially decreasing the EBITDA of the Acquired Entities.

          (b) Without limiting the generality of the foregoing provisions of Section 9.12(a),
during the period commencing on the Closing Date and ending on December 31, 2009, without the
written consent of Sellers (not to be unreasonably withheld or delayed), Buyer will not, and, in
the case of Sections 9.12(b)(i) through (vii), will not permit any of its Affiliates to:

          (i) dissolve, merge, consolidate, liquidate or otherwise change the legal existence of
the Acquired Entities, except that any Acquired Entity may merge with another Acquired
Entity and Buyer may cause any such Acquired Entity to be converted into a limited liability
company;

          (ii) except pursuant to the arrangements set forth on Schedule 9.12(b)(ii),
charge the Acquired Entities any management fee or administrative fee or similar fee;

          (iii) except for the arrangements set forth on Schedule 9.12(b)(ii), cause any
Acquired Entity to enter into any Contract or other arrangement with any other Affiliate of
Buyer (other than Contracts and arrangements among any of Buyer and the Acquired Entities),
except on an arms’ length basis;

          (iv) move any business office of any Acquired Entity or relocate any employees or
consultants of any Acquired Entity, in each case more than ten miles from its or their
location on the Closing Date;

          (v) so long as any Seller Note is outstanding, cause or allow the payment of any
dividend by Buyer (provided that the foregoing shall not be deemed to prohibit or otherwise

34

 

restrict any intercompany transfers or other intercompany transactions among the Acquired
Entities and/or any dividends or intercompany transactions between any Acquired Entity and
Buyer);

          (vi) cause the Acquired Entities to hire any management-level employee or consultant,
except (i) employees and consultants retained by the Acquired Entities on the Closing Date,
(ii) employees and consultants retained to work for the Acquired Entities on a full or
part-time basis on terms and conditions consistent with the Acquired Entities’ historic
practices and/or (iii) in the good faith discretion of the board of directors of Buyer or
any Acquired Entity;

          (vii) materially increase the compensation paid to any Acquired Entities’ employee,
except for merit or bonus increases in the ordinary course of business or as otherwise
determined in the good faith discretion of the board of directors of Buyer or any Acquired
Entity; or

          (viii) direct any existing business of any Acquired Entity to any Affiliate of Buyer
(other than another Acquired Entity) or prohibit any Acquired Entity from soliciting any new
business otherwise within the lines of business of the Acquired Entities as of the date
hereof.

ARTICLE X

MISCELLANEOUS

     10.1 Amendment and Waiver.
This Agreement may be amended and any provision of this Agreement may be waived, provided that
any such amendment or waiver will be binding upon a party only if such amendment or waiver is set
forth in a writing executed by Buyer and Sellers (or in the case of a waiver, by the party
providing such waiver). No course of dealing between or among any Persons having any interest in
this Agreement will be deemed effective to modify, amend or discharge any part of this Agreement or
any rights or obligations of any party under or by reason of this Agreement. Notwithstanding any
provision herein to the contrary, no Seller shall be entitled to make any determination, provide
any waiver or amendment or otherwise take any action on behalf of any member of the Buyer Group
hereunder except to the extent approved in writing by the Board.

     10.2 Notices.
All notices, demands and other communications given or delivered under this Agreement will be
in writing and will be deemed to have been given when personally delivered, mailed by first class
mail, return receipt requested, delivered by overnight delivery service or telecopied. Notices,
demands and communications to the Acquired Entities, Sellers and Buyer will, unless another address
is specified in writing, be sent to the address or telecopy number indicated below:

          Notices to Sellers (and, prior to the Closing, the Acquired Entities):

If to Sargent:

Bruce Sargent

425 Center Line Road

Presque Isle, ME 04769

If to Tweedie:

Michael Tweedie

P.O. Box 363

Mars Hill, ME 04758

35

 

With a copy to:

Stinson Morrison Hecker LLP

12 Corporate Woods

10975 Benson, Suite 550

Overland Park, KS 66210

Attention: Lawrence Bigus

Telecopy: (913) 451-6352

Notices to Buyer (and after the Closing, the Acquired Entities):

c/o Thayer Capital Partners

1455 Pennsylvania Avenue, N.W.

Suite 350

Washington, D.C. 20004

Attention: Scott Rued

Telecopy: (202) 371-0391

With a copy to:

Kirkland & Ellis LLP

200 East Randolph Drive

Chicago, Illinois 60601

Attention: John A. Schoenfeld, P.C.

Telecopy: (312) 861-2200

     10.3 Binding Agreement; Assignment. This Agreement and all of the provisions hereof will be
binding upon and inure to the benefit of the parties hereto and their respective successors and
permitted assigns; provided that neither this Agreement nor any of the rights, interests or
obligations hereunder may be assigned by any Seller without the prior written consent of Buyer or
by Buyer without the prior written consent of the Sellers;
provided further that, notwithstanding
the foregoing, Buyer and its permitted assigns may at any time without the prior written consent of
any other party: (a) assign, in whole or in part, its rights and obligations under this Agreement
to one or more of its Affiliates or to any subsequent purchaser of the Acquired Entities or of any
material portion of the Acquired Entities’ assets and (b) assign its rights under this Agreement
for collateral security purposes to any lenders providing financing to Buyer, the Acquired
Entities, such permitted assign or any of their Affiliates.

     10.4 Severability. Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable Law, but if any provision of this
Agreement is held to be prohibited by or invalid under applicable Law, such provision will be
ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Agreement.

     10.5 Construction. The language used in this Agreement will be deemed to be the language
chosen by the parties hereto to express their mutual intent, and no rule of strict construction
will be applied against any Person. All Exhibits and Schedules annexed hereto or referred to
herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein.
Any matter or item disclosed on one Schedule shall be deemed to have been disclosed on each other
Schedule if, and only to the extent that, it is reasonably apparent that such matter or item
disclosed has application to such other

36

 

Schedule. The parties intend that each representation,
warranty, and covenant contained herein shall have
independent significance. If any party has breached any representation, warranty, or covenant
contained herein in any respect, the fact that there exists another representation, warranty, or
covenant relating to the same subject matter (regardless of the relative levels of specificity)
which the party has not breached shall not detract from or mitigate the fact that the party is in
breach of the first representation, warranty, or covenant. Nothing in this Agreement is intended
to provide any party with more than one recovery in respect of any particular Loss, regardless of
whether arising out of the breach of more than one representation or warranty. Any references to
defined terms herein imparting the singular only shall include the plural and vice versa. The word
“includes” and its derivatives means “includes, but is not limited to,” and corresponding
derivative expressions. The words “this Agreement,” “herein,” “hereby,” “hereunder,” and words of
similar import refer to this Agreement as a whole and not to any particular article, section or
other subdivision, unless expressly so limited. The word “or” is disjunctive but not necessarily
exclusive.

     10.6 Captions. The captions used in this Agreement are for convenience of reference only
and do not constitute a part of this Agreement and will not be deemed to limit, characterize or in
any way affect any provision of this Agreement, and all provisions of this Agreement will be
enforced and construed as if no caption had been used in this Agreement.

     10.7 Entire Agreement. This Agreement and the documents referred to herein contain the
entire agreement between the parties and supersede any prior understandings, agreements or
representations by or between the parties, written or oral, which may have related to the subject
matter hereof in any way, including the letter agreement, dated May 10, 2006, among the Sellers,
the Acquired Entities and Buyer’s Affiliate, Thayer Equity Investors V, L.P.

     10.8 Counterparts. This Agreement may be executed in one or more counterparts (whether by
originally-executed counterparts or electronically-delivered counterparts or any combination of
such methods), each of which shall be deemed an original but all of which taken together will
constitute one and the same instrument.

     10.9 Governing Law. All issues and questions concerning the construction, validity,
enforcement and interpretation of this Agreement and the exhibits and schedules hereto shall be
governed by, and construed in accordance with, the Laws of the State of Delaware, without giving
effect to any choice of law or conflict of law rules or provisions (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the Laws of any
jurisdiction other than the State of Delaware.

     10.10 Parties in Interest. Nothing in this Agreement, express or implied, is intended to
confer on any Person other than the parties and their respective successors and assigns any rights
or remedies under or by virtue of this Agreement.

     10.11 Knowledge. As applied to the Acquired Entities or Sellers in this Agreement, the term
“Knowledge” means the actual knowledge or awareness (after reasonable inquiry of the officers,
directors, management personnel, dispatchers (including third party dispatchers, but excluding, for
the avoidance of doubt, any truck drivers) and attorneys, accountants and other professional
service providers of, or engaged by, the Acquired Entities and Sellers) of the following Persons:
Bruce Sargent, Michael Tweedie, and Amy Howlett.

37

 

ARTICLE XI

DEFINITIONS

     11.1 Certain Definitions. For purposes hereof, the following terms, when used herein with
initial capital letters, shall have the respective meanings set forth below:

     “Affiliate” of any particular Person means any other Person controlling, controlled by
or under common control with such particular Person. For the purposes of this definition,
“control” means the possession, directly or indirectly, of the power to direct the
management and policies of a Person whether through the ownership of voting securities, Contract or
otherwise.

     “Bonus Recipients” means the employees of the Acquired Entities identified on
Schedule 11.1(b) attached hereto.

     “Business Day” means any day other than Saturday, Sunday or any other day in which
banks in New York, New York are authorized or required to be closed.

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

     “Contract” shall mean any contract, license, sublicense, franchise, mortgage, purchase
order, indenture, loan agreement, note, lease, sublease, agreement, commitment, instrument or other
arrangement, in each case, whether written or oral.

     “EBITDA” means, for any particular Contingent Payment Period and solely with respect
to the businesses of the Acquired Entities, without duplication, (i) Buyer’s and the Acquired
Entities’ consolidated net income (or loss) for any particular Contingent Payment Period determined
in accordance with GAAP, consistently applied in accordance with the past practices of the Acquired
Entities, plus (ii) to the extent (but only to the extent) deducted in such period in
determining such net income (or loss) (A) the amount of income Tax expense of Buyer and the
Acquired Entities for such period, (B) the amount of interest expense for indebtedness for borrowed
money of Buyer and the Acquired Entities for such period, (C) the amount of depreciation expenses
of Buyer and the Acquired Entities for such period and (D) the amount of amortization expenses of
Buyer and the Acquired Entities for such period, minus (iii) to the extent (but only to the
extent) included in such period in determining such net income, (1) interest income and
non-operating income and (2) extraordinary or nonrecurring items of income or gain. In addition,
“EBITDA” will exclude the effect of any of the following, to the extent included in the
determination of Buyer’s and the Acquired Entities’ consolidated net income (or loss) for any
particular Contingent Payment Period: (a) any EBITDA attributable to any business resulting from an
acquisition directly or indirectly consummated by Buyer and/or any Acquired Entity after the
Closing; (b) any portion of any Contingent Payment due and owing, if any; (c) the amount of any
management, advisory or transaction fees paid or payable to Thayer Equity Investors V, L.P. or its
Affiliates, including the arrangements set forth on Schedule 9.12(b)(ii); (d) any non-cash
items increasing net income in any such period; (e) any gains or losses from the sale of assets
outside of the ordinary course of business; (f) the aggregate amount of the insurance premium for
umbrella insurance coverage in excess of $2.0 million but less than $15.0 million (not, in any
event, to exceed $250,000 in the aggregate per Contingent Payment Period); (g) the aggregate amount
of the insurance premium for umbrella insurance coverage in excess of $15.0 million, if any; (h)
the Transaction Bonuses and (i) the aggregate amount of third party expenses (including filing and
permit fees) incurred by Buyer or the Acquired Entities as a result of any relicensing or
repermitting required solely as a result of the sale transaction contemplated by Section
1.1 hereof and/or changes resulting directly therefrom.

38

 

     “Encumbrance” shall mean any encumbrance, lien, pledge, mortgage, deed of trust,
security interest, claim, lease, charge, community property interest, equitable interest, option,
debt, right of first refusal, easement, servitude or similar restriction.

     “Environmental and Safety Requirements” shall mean, as in effect prior to or on the
Closing Date, all federal, state, local and foreign statutes, regulations, ordinances and similar
provisions having the force or effect of Law, all judicial and administrative orders and
determinations, all contractual obligations and all common law concerning public health and safety,
worker health and safety, pollution, or protection of the environment, including all those relating
to the presence, use, production, generation, handling, transportation, treatment, storage,
disposal, distribution, labeling, testing, processing, discharge, release, threatened release,
control, or cleanup of any hazardous or otherwise regulated materials, substances or wastes,
chemical substances or mixtures, pesticides, pollutants, contaminants, toxic chemicals, petroleum
products or byproducts, asbestos, polychlorinated biphenyls, noise or radiation, each as amended.

     “Family Group” of an individual means such individual’s spouse and descendants
(whether natural or adopted) and any trust or other estate planning vehicle solely for the benefit
of such individual and/or such individual’s spouse and/or descendants.

     “Fundamental Buyer Representations” means those representations and warranties of
Buyer set forth in Sections 6.1 (Organization), 6.2 (Authorization) and 6.5
(Brokerage).

     “Fundamental Seller Representations” means those representations and warranties of
Sellers and/or the Acquired Entities set forth in Sections 4.1 (Organization), 4.2
(Authorization), 4.3 (Capitalization), 4.4 (Subsidiaries), 4.11 (Taxes),
4.15 (Brokerage), 4.26 (Indebtedness), 4.28 (Cash), 5.1
(Residency), 5.2 (Authorization), 5.4 (Brokerage) and 5.5 (Securities).

     “GAAP” means generally accepted accounting principles of the United States
consistently applied.

     “Governmental Entity” means any nation or government, any state, province or other
political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory
or administrative functions of or pertaining to government, including any court, arbitrator or
other body or administrative, regulatory or quasi-judicial authority, agency, department, board,
commission or instrumentality of any federal, state, local or foreign jurisdiction.

     “HSR Act” means the Hart Scott Rodino Antitrust Act of 1976, as amended.

     “Indebtedness” means, without duplication, (A) all indebtedness or other obligation of
the Acquired Entities for borrowed money, whether current, short term, or long term, secured or
unsecured, (B) any indebtedness evidenced by any note, bond, debenture or other debt security, (C)
any indebtedness for the deferred purchase price of property or services with respect to which a
Person is liable, contingently or otherwise, as obligor or otherwise, (D) any commitment by which a
Person assures a creditor against loss (including, without limitation, contingent reimbursement
Liability with respect to letters of credit), (E) all lease obligations of the Acquired Entities
under leases which are capital leases in accordance with GAAP, (F) any off balance sheet financing
of the Acquired Entities, (G) any liability of the Acquired Entities with respect to interest rate
swaps, collars, caps and similar hedging obligations, (H) any liability of the Acquired Entities
under deferred compensation plans, severance or bonus plans or similar arrangements (including
retention agreements and change-in-control agreements) made payable in whole or in part as a result
of the transactions contemplated herein (other than the aggregate amount of Transaction Bonuses
paid and/or payable to the Bonus Recipients to the extent such amounts are deducted

39

 

from the Cash Portion of the Purchase Price at Closing), (I) any indebtedness referred to in
clauses (A) through (H) above of any Person other than the Acquired Entities which is either
guaranteed by, or secured by a security interest upon any property owned by, the Acquired Entities
and (J) accrued and unpaid interest of, and prepayment premiums, penalties or similar contractual
charges arising as result of the discharge at Closing of, any such foregoing obligation. For the
avoidance of doubt, “Indebtedness” shall (1) not be deemed to include trade account payables of the
Acquired Entities generated in the Ordinary Course of Business to unaffiliated third Persons
(including truckers) and real property lease payments, (2) not be deemed to include the performance
and similar bonds and letters of credit set forth on Schedule 11.1(a), (3) include any
Indebtedness owed to any Seller or any of such Seller’s Affiliates (other than an Acquired Entity)
and any Indebtedness securing any real property) and (4) not be deemed to include any Indebtedness
owed from one Acquired Entity to another Acquired Entity.

     “Law” means any law, statute, rule, ordinance, code, requirement, regulation, treaty,
administrative ruling or executive order in the United States of America, any foreign country or
any domestic or foreign national state, provincial, municipal or other local political subdivision
thereof issued or promulgated by any Governmental Entity.

     “Material Adverse Effect” means any event, transaction, condition or change (or
combination of the foregoing) which has had or could reasonably be expected to have a material
adverse effect on the business, assets, condition (financial or otherwise), operating results,
customer, employee and/or sales representative relations or value of the Acquired Entities, taken
as a whole, other than any event, transaction, condition or change relating to or arising out of
(i) general United States economic or market conditions or (ii) acts of terrorism or war.

     “Order” means any order, injunction, judgment, decree, ruling, writ or assessment.

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

     “Permits” means any license, permit, certificate, approval, consent, registration,
filing, franchise, accreditation or similar authorization issued, granted or otherwise made
available by or under the authority of any Governmental Entity or pursuant to any Law.

     “Permitted Encumbrance” means (i) liens for Taxes not yet due and payable; (ii) liens
imposed by law, such as liens of carriers, warehousemen, mechanics and materialmen incurred in the
Ordinary Course of Business for sums that are 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 and a Governmental Entity.

     “Pre-Closing Tax Period” means any Tax period ending on or before the Closing Date,
except that for Straddle Periods, the portion of such Straddle Period ending on the Closing Date
will be considered a Pre-Closing Tax Period.

     “Pro Rata Share” means, (i) with respect Sargent, 50% and (ii) with respect to
Tweedie, 50%.

     “Proceeding” means any action, claim, demand, arbitration, audit, hearing,
investigation, litigation, suit or other proceeding of any nature (whether civil, criminal,
administrative, judicial or investigative, whether formal or informal, whether public or private)
commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental
Entity or arbitrator.

40

 

     “Proprietary Rights” means all of the following items (i) patents, patent
applications, patent disclosures and inventions; (ii) trademarks, service marks, trade dress,
logos, slogans, designs, trade names, Internet domain names and corporate names together with all
goodwill associated therewith; (iii) copyrights, copyrightable works and mask works and all
derivative works thereof; (iv) all registrations, applications and renewals for any of the
foregoing; (v) trade secrets, know how and confidential information (including, without limitation,
ideas, formulae, manufacturing and production processes and techniques, specifications, designs,
research and development information, technical data, proposals, financial and accounting data,
business and marketing plans, customer and supplier lists and related information); (vi) computer
software (including, without limitation, data, data bases and documentation) and licensed program
products and (vii) any other proprietary rights.

     “Real Property” means collectively, the Owned Real Property and the Leased Real
Property.

     “Securities Act” means the Securities Act of 1933, as amended from time to time.

     “Straddle Period” means any taxable period beginning on or before and ending after the
Closing Date.

     “Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company, association or other business entity of which (i) if a corporation, a majority
of the total voting power of shares of stock entitled (irrespective of whether, at the time, stock
of any other class or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) to vote in the election of directors, managers or trustees
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more
of the other Subsidiaries of that Person or a combination thereof, or (ii) if a partnership,
limited liability company, association or other business entity, either (A) a majority of the
partnership or other similar ownership interest thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more Subsidiaries of that Person or a combination
thereof, or (B) such Person is a general partner, managing member or managing director of such
partnership, limited liability company, association or other entity.

     “Tax” means any federal, state, local, or foreign income, gross receipts, license,
payroll, employment, excise, severance, stamp, occupation, premium, windfall profits,
environmental, customs duties, capital stock, franchise, profits, withholding, social security,
unemployment, disability, real property, personal property, unclaimed property, sales, use,
transfer, registration, escheat, 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 including any obligation to indemnify or otherwise assume or succeed to the Tax
liability of any other Person.

     “Tax Returns” means returns, declarations, reports, claims for refund, information
returns or other documents (including any related or supporting schedules, statements or
information) filed or required to be filed in connection with the determination, assessment or
collection of Taxes of any party or the administration of any laws, regulations or administrative
requirements relating to any Taxes.

     “Transaction Bonuses” means the cash payments due to the Bonus Recipients as set forth
on Schedule 11.1(b) (prior to any reduction in respect of applicable federal, state and
local tax withholdings). Schedule 11.1(b) sets forth the Transaction Bonus payable to each
Bonus Recipient in connection with the consummation of the transactions contemplated hereby (prior
to any reduction in respect of applicable federal, state and local tax withholdings).

     11.2 Terms Defined Elsewhere in this Agreement. For purposes of this Agreement, the
following terms shall have the meanings set forth in the section indicated:

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	 	 	Section
	“Accounting Firm”
	 	 	 	1.4(b)
	“Acquired Entities”
	 	Preamble
	“Agreement”
	 	Preamble
	“Applicable Limitation Date”
	 	8.2(c)(iii)
	“Basket”
	 	8.2(c)(i)
	“Benefit Plans”
	 	 	 	4.17(a)
	“Board”
	 	 	 	1.4(b)
	“Buyer”
	 	Preamble
	“Buyer Basket”
	 	8.2(c)(ii)
	“Buyer Cap”
	 	8.2(c)(ii)
	“Buyer Group”
	 	8.2(a)
	“Cap”
	 	 	8.2(c)(i)
	“Calculation Notice Statement”
	 	 		1.4(b)
	“Cash Portion”
	 	 	 	1.2
	“Contingent Payment”
	 	 	1.4(a)
	“Contingent Payment Period”
	 	 	 	1.4(a)
	“Closing”
	 	 	 	1.3(a)
	“Closing Date”
	 	 	 	1.3(a)
	“Closing Date Payment”
	 	 	 	1.2
	“COBRA”
	 	 	4.17(a)
	“Company Proprietary Right”
	 	 	4.13(b)
	“ERISA”
	 	 	4.17(a)
	“Equity Interests”
	 	 	 	4.3
	“HSR Act”
	 	 	 	1.6
	“Indemnified Party”
	 	 	 	8.2(d)
	“Indemnifying Party”
	 	 	 	8.2(d)
	“Insiders”
	 	 	 	4.20
	“Improvements”
	 	 	4.9(c)
	“Latest Balance Sheet”
	 	 	4.6
	“Leased Real Property”
	 	 	 	4.9(b)
	“Leases”
	 	 	 	4.9(b)
	“Loss”
	 	 	 	8.2(a)
	“Material Contract”
	 	 	 	4.12(a)
	“Objection Notice”
	 	 	 	1.4(b)
	“Owned Real Property”
	 	 	 	4.9(a)
	“Purchase Price”
	 	 		1.2
	“Sargent”
	 	Preamble
	“Sargent Note”
	 	 	 	1.2
	“Section 338(h)(10) Election”
	 	 	 	9.1(g)(i)
	“Securities”
	 	Preamble
	“Seller”
	 	Preamble
	“Seller Notes”
	 	 	 	1.2
	“Transfer”
	 	 	 	1.4(d)
	“Tweedie”
	 	Preamble
	“Tweedie Note”
	 	 	 	1.2
	“WARN Act”
	 	 	 	4.8(j)

* * * *

42

 

     IN WITNESS WHEREOF, the parties hereto have executed this Stock Purchase Agreement as of the
date first written above.

	 	 	 	 	 
	 	BUYER:

SARGENT TRANSPORTATION GROUP, INC.
 	 
	 	By:  	/s/ Dan Moorse 	 
	 	 	Name:  	Dan Moorse 	 
	 	 	Its:       Vice President 	 
	 
	 	ACQUIRED ENTITIES:

SARGENT TRUCKING, INC.
 	 
	 	By:  	/s/ Bruce W. Sargent 	 
	 	 	Name:  	Bruce W. Sargent 	 
	 	 	Its:       President 	 
	 
	 	BIG ROCK TRANSPORTATION, INC.
 	 
	 	By:  	/s/ Bruce W. Sargent 	 
	 	 	Name:  	Bruce W. Sargent 	 
	 	 	Its:       President 	 
	 
	 	MIDWEST CARRIERS, INC.
 	 
	 	By:  	/s/ Bruce W. Sargent 	 
	 	 	Name:  	Bruce W. Sargent 	 
	 	 	Its:       President 	 
	 
	 	SMITH TRUCK BROKERS, INC.
 	 
	 	By:  	/s/ Bruce W. Sargent 	 
	 	 	Name:  	Bruce W. Sargent 	 
	 	 	Its:       President 	 
	 
	 	B & J TRANSPORTATION, INC.
 	 
	 	By:  	/s/ Bruce W. Sargent 	 
	 	 	Name:  	Bruce W. Sargent 	 
	 	 	Its: President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	SELLERS:
 	 
	                                                       
	 	/s/
Bruce W. Sargent 	 
	 	Bruce Sargent 	 
	                                                        
	 
	 	 	 
	                                                       
	 	/s/
Michael Tweedie 	 
	 	Michael Tweedieexv10w4

Exhibit 10.4

PURCHASE AGREEMENT

     THIS PURCHASE AGREEMENT dated as of February 29, 2008 by and among MICHAEL P. VALENTINE (the
“Seller”), GROUP TRANSPORTATION SERVICES, INC., a Delaware corporation (“GTS”), GTS
DIRECT, LLC, an Ohio limited liability company (“Direct”), and GTS ACQUISITION SUB, INC., a
Delaware corporation, or its permitted assignee, as provided in Section 12.12 (the
“Buyer”).

RECITALS

     The Seller is the owner of Forty-six Million Two Hundred Twenty-four Thousand Six Hundred Six
(46,224,606) shares of the common stock of GTS, which represents one hundred percent (100%) of the
issued and outstanding shares of capital stock of GTS; and is the owner of one hundred (100) units
of Direct, which represents all of the issued and outstanding units of Direct. GTS and Direct are
collectively referred to as the “Company” for purposes of this Agreement, and the common
stock of GTS owned by the Seller and the units of Direct owned by the Seller are collectively
referred to as “Shares” for purposes of this Agreement.

     Seller desires to sell the Shares to the Buyer, and the Buyer desires to purchase the Shares,
on the terms and subject to the conditions set forth in this Agreement.

     On December 18, 2007, the Seller, the Company and an Affiliate of the Buyer executed a certain
letter agreement with respect to this transaction (the “Letter Agreement”). This Agreement
is the definitive purchase agreement contemplated in the Letter Agreement.

 

 

AGREEMENT

     The parties agree as follows:

     1. Purchase and Sale.

          Upon and subject to the terms and conditions contained in this Agreement, at the “Closing” (as
defined in Section 9.1), Seller shall sell, transfer and deliver good and valid title to the Shares
to the Buyer, free and clear of all claims and Encumbrances (as defined in Section 3.4), and the
Buyer shall purchase the Shares from the Seller.

     2. Purchase Price and Payment.

          2.1 Purchase Price.

          The consideration to be paid by the Buyer to the Seller for the acquisition of the Shares by
the Buyer shall be as follows:

     (a) Subject to the post-Closing adjustment set forth in Section 2.3, the sum of
Nineteen Million Eight Hundred Thousand Dollars ($19,800,000) shall be paid by Buyer to
Seller, as partial consideration for the acquisition of the Shares by Buyer (the “Cash
Purchase Price”);

     (b) A twenty percent (20%) interest in the outstanding stock of Group Transportation
Services Holdings, Inc., Buyer’s parent corporation, or its assignee, as provided in Section
12.12, held by Buyer (“Parent’s Stock”); and

     (c) After the Closing, Buyer or its permitted assignee may pay to Seller an amount not
to exceed the sum of Three Million Five Hundred Thousand Dollars ($3,500,000), in accordance
with Section 2.4 (the “Earn Out Payment(s)”).

          2.2 Payment of Purchase Price.

               2.2.1 The Purchase Price shall be paid by Buyer to Seller as follows:

     (a) Subject to the post-Closing adjustment set forth in Section 2.3, (i) an amount
equal to the Cash Purchase Price minus the amount of Funded Indebtedness at Closing shall be
paid at Closing in immediately available funds to Seller by wire transfer, to an account or
accounts designated by Seller, in writing, which written designation shall be delivered to
Buyer at least three (3) business days prior to Closing, and (ii) amounts equal in aggregate
to the amount of Funded Indebtedness at Closing shall be paid by

2

 

Buyer to the Company so that the Company can satisfy the obligations comprising such
Funded Indebtedness immediately after Closing.;

     (b) Parent’s Stock shall be duly endorsed and transferred to Seller, at Closing; and

     (c) The Earn Out Payment(s) may be paid by Buyer to Seller pursuant to the terms of
Section 2.4.

          2.3 Adjustment of Purchase Price.

               2.3.1 Within 45 days after the Closing, the Buyer shall cause the Company to prepare and
deliver to the Seller a draft statement of the Company’s working capital as of the Closing Date
(“Working Capital Statement”). The working capital set forth on the Working Capital
Statement shall be determined by subtracting current liabilities (other than Taxes related to
bonuses payable by the Company at Closing, to the extent included in the calculation of Funded
Indebtedness at Closing pursuant to Section 2.2.1(a)) from current assets of the Company as of the
Closing Date, as calculated in accordance with U.S. generally accepted accounting principles
(“GAAP”) and, to the extent consistent with GAAP, in a manner consistent with the
preparation of the balance sheet for the year ended December 31, 2007 included in the Financial
Statements (as herein defined), except that cash shall not be included as a current asset in such
calculation, and any inter Company balances, accrued commissions and/or bonuses, accrued payroll
taxes, accrued income taxes payable, accrued property (both real and personal) taxes shall not be
included as current liabilities in such calculation.

               2.3.2 Within fifteen (15) business days (the “Dispute Period”) of the Seller’s receipt
of the Working Capital Statement, Seller may dispute any amounts reflected on the Working Capital
Statement by notifying the Buyer, in writing (the “Dispute Notice”), of each disputed item
(each, a “Disputed Item”) and the adjustments to those items that, in the opinion of the
Seller, are required, specifying the amount thereof in dispute and setting forth, in detail, the
basis for such dispute. If the Seller does not deliver a Dispute Notice within the Dispute Period,
the calculation of the working capital set forth in the Working Capital Statement shall be deemed
final and binding and shall not be subject to further review, challenge or adjustment (any such
final working capital calculation shall be referred to as the “Final Working Capital”). In
the event the Seller delivers a Dispute Notice within the Dispute Period and the Buyer does not
object thereto in a writing delivered to the Seller within fifteen (15) business days of the
Buyer’s

3

 

receipt of the Dispute Notice, the calculation of the working capital set forth in the Dispute
Notice shall be deemed the Final Working Capital. In the event that the Seller delivers a Dispute
Notice and the Buyer objects to the Disputed Items and proposed adjustments set forth in such
Dispute Notice, then the Buyer and the Seller shall negotiate in good faith to resolve all of the
Disputed Items. If the Buyer and the Seller are unable to resolve all of the Disputed Items within
fifteen (15) business days of the Buyer’s notification to Seller that it objects to the Disputed
Items set forth in such Dispute Notice, either the Buyer or the Seller may, within five (5)
business days after the end of such fifteen (15) business days, request that any unresolved
Disputed Items be resolved by means of an arbitration, to be conducted as follows:

     (a) Any request for an Arbitration shall be made in writing to the Cleveland, Ohio
office of Ernst & Young or, in the event such firm declines to serve as the Independent
Accounting Firm, to the Cleveland, Ohio office of such other independent accounting firm of
recognized national standing that may be selected by the Seller with the consent of the
Buyer, which consent will not be unreasonably withheld. The firm to which such request is
made shall, upon agreeing in writing to resolve the Disputed Items submitted to it in
accordance with the terms of this Agreement, be the “Independent Accounting Firm”, as that
term is used in this Agreement. The Arbitration shall be conducted under the auspices of
the Independent Accounting Firm and, except to the extent said rules conflict with the terms
of this Section 2.3.2, shall be conducted in accordance with the Commercial Arbitration
Rules of the American Arbitration Association.

     (b) The Independent Accounting Firm shall be instructed by the parties to, within five
(5) business days of its agreement to resolve the Disputed Items submitted to it, provide to
the Buyer and the Seller the names and resumes, which shall include a description of the
individual’s substantial experience in the preparation and audit of financial statements of
corporations engaged in businesses similar to the Company’s business and a disclosure of the
individual’s existing or prior business and/or personal relationships (if any) with the
Buyer, the Seller, or any employees or counsel for either Buyer or Seller of at least three
(3) partners of the Independent Accounting Firm (preferably, but not necessarily, located in
its Cleveland office) who are willing to serve as the individual responsible for conducting
the Arbitration (the “Arbitrator”). If, on or

4

 

before the third (3rd) business day after their receipt of the information called for
by the preceding sentence, the Buyer and the Seller have been unable after good faith
negotiation to agree upon and select one of the individuals so identified to act as the
Arbitrator, then the Buyer and the Seller shall each have the right on or before the fifth
(5th) business day after their receipt of such information to deliver to the Independent
Accounting Firm a confidential communication striking any or all of the individuals
previously identified as a potential Arbitrator as to whom an existing business and/or
personal relationship was disclosed pursuant to the preceding sentence, and/or striking no
more than one of the other individuals previously identified as a potential Arbitrator. The
Independent Accounting Firm shall then proceed to select the Arbitrator from among the
previously identified individuals who have not been stricken from consideration; if all such
previously identified individuals are so stricken, the Independent Accounting Firm shall
designate at least three (3) additional partners who are eligible to serve as the Arbitrator
and the foregoing selection procedure shall be repeated until an Arbitrator is selected.

     (c) Upon being selected, the Arbitrator shall conduct an Arbitration to determine, with
regard to each of the Disputed Items that were submitted to the Independent Accounting Firm
pursuant to this Section 2.3.2, whether the Working Capital Statement was prepared in
accordance with the requirements of this Agreement and, if not, the dollar amount of any
adjustment that may be required in order for the Disputed Item in question to conform to the
requirements of this Agreement and to determine the Final Working Capital. The Arbitrator
shall make such determination subsequent to conducting the Arbitration and shall set forth
such determination of the Final Working Capital in a written ruling, which ruling shall be
rendered within sixty (60) days of the date on which the Arbitrator was selected and shall
be delivered to the Buyer and to the Seller. The locale of all hearings, if any, conducted
by the Arbitrator in connections with the Arbitrations shall be the Cleveland, Ohio office
of the Independent Accounting Firm.

     (d) The ruling of the Arbitrator shall be final, binding, and conclusive on the Buyer
and the Seller; shall have the legal effect of an arbitral award; and shall be subject only
to the judicial review permitted by the Federal Arbitration Act. Judgment on the

5

 

ruling of the Arbitrator may be entered and enforced in any court having jurisdiction
over the parties or their assets. The fees and disbursements of the Independent Accounting
Firm shall be allocated between the Seller on the one hand and the Buyer on the other hand
in the same proportion that the aggregate amount of such Disputed Items so submitted to the
Independent Accounting Firm that is unsuccessfully disputed by each such party (as finally
determined by the Independent Accounting Firm) bears to the total amount of such Disputed
Items so submitted.

               2.3.3 If the Final Working Capital is greater than ($410,000) to ($615,000) (the “Working
Capital Requirement”), the Cash Purchase Price shall be increased by one dollar for every
dollar by which the Final Working Capital exceeds the Working Capital Requirement (the
“Purchase Price Increase”). To the extent the Final Working Capital of the Company is less
than the Working Capital Requirement, the Cash Purchase Price shall be reduced by one dollar for
every dollar by which the Working Capital Requirement exceeds the Final Working Capital (the
“Purchase Price Reduction”). The amount of the Purchase Price Increase, if any, or the
Purchase Price Reduction, if any, is referred to herein as the “Purchase Price Adjustment.”
Subject to Section 2.3.2, the Purchase Price Adjustment, if any, shall be paid in cash, within
five (5) business days from the date of the final determination of the Final Working Capital.

          2.4 Earn-Out Payment(s)

          Following the Closing, the Earn-Out Payment(s) shall be payable by Buyer to Seller or his
Assignee(s) as provided in Section 2.4(f), as follows:

     (a) On or before March 31, 2009 and thereafter on or before the March 31st of each
year, as commencing on March 31, 2009 and ending on March 31, 2014 (the “EBITDAM
Period”), Buyer shall deliver to Seller a statement (the “EBITDAM Statement”)
setting forth the calculation of EBITDAM, as defined herein, for the immediately preceding
calendar year. The calculation of EBITDAM set forth in the EBITDAM Statement shall be
derived from the Company’s audited financial statements for the preceding fiscal year, a
copy of which shall be delivered together with the EBITDAM Statement. Subject to the
restrictions set forth in this Section 2.4(a), Buyer shall operate the Company in a
commercially reasonable manner consistent with the past practices of Seller’s operation of
the Company. Buyer and Seller acknowledge and agree

6

 

that the term “EBITDAM,” for purposes of this Agreement and this Section 2.4,
shall be defined as the Company’s earnings before interest, taxes, depreciation and
amortization, and shall exclude all management fees of Buyer or its parent, Affiliates,
subsidiaries, or principals, all holding company charges of Buyer or its parent, Affiliates,
subsidiaries or principals, any preferred dividends (paid or accrued) to the equity holders
of Buyer, and all guaranteed bonuses paid to Seller, as that term is defined in the
Employment Agreement by and between Seller and Buyer.

     The calculation of EBITDAM set forth in EBITDAM Statement shall be final and binding on
Buyer and Seller, unless Seller shall have delivered within thirty (30) days following
receipt of the EBITDAM Statement (the “EBITDAM Dispute Period”), a written notice
(the “EBITDAM Dispute Notice”) setting forth the items in the EBITDAM Statement that
Seller disputes as not being in accordance with the requirements of this Section 2.4 or as
having computational or other errors, specifying in reasonable detail the nature and extent
of any such dispute, including the amount of any proposed increase or decrease in the
EBITDAM, as set forth in EBITDAM Statement. In the event the Seller delivers an EBITDAM
Dispute Notice within the EBITDAM Dispute Period and the Buyer does not object thereto in a
writing delivered to the Seller within fifteen (15) days of its receipt of the EBITDAM
Dispute Notice, then the calculation of EBITDAM set forth in the EBITDAM Dispute Notice
shall be deemed be final and binding on Buyer and Seller. In the event that the Seller
delivers an EBITDAM Dispute Notice within said fifteen (15) day period and the Buyer objects
to proposed adjustments set forth in such EBITDAM Dispute Notice, then Buyer and Seller
shall negotiate in good faith to resolve any such dispute. If within the fifteen (15) day
period following the delivery of the Buyer’s notification to Seller that it objects to the
proposed adjustments set forth in such EBITDAM Dispute Notice, the Buyer and the Seller
shall not have resolved such dispute, then the Buyer and the Seller shall engage the
Independent Accounting Firm, as that term is defined in Section 2.3.2(a), to resolve such
dispute within thirty (30) days of its engagement. The decision of the Independent
Accounting Firm shall be final and binding upon the Buyer and the Seller, and a declaratory
judgment by a court of competent jurisdiction may be entered in accordance therewith. The
fees and expenses of the

7

 

Independent Accounting Firm shall be borne by the parties to this Agreement, as
determined by the Independent Accounting Firm in its absolute discretion.

     (b) At such time as the EBITDAM is deemed final and binding on the Buyer and Seller, as
provided in Section 2.3.4(a) (the “Final EBITDAM”), the following amounts shall be
payable by Buyer to Seller within fifteen (15) days of the determination of the Final
EBITDAM, for the applicable year of the EBITDAM Period, as follows:

     i. If the Final EBITDAM is greater than Three Million Dollars ($3,000,000) but
less than Three Million Four Hundred Ninety-Nine Thousand Nine Hundred Ninety Nine
Dollars ($3,499,999), then the Buyer shall pay to the Seller the sum of Five Hundred
Thousand Dollars ($500,000);

     ii. If the Final EBITDAM is greater than Three Million Five Hundred Thousand
Dollars ($3,500,000) but less than Three Million Nine Hundred Ninety-Nine Thousand
Nine Hundred Ninety Nine Dollars ($3,999,999), then the Buyer shall pay to the
Seller the sum of Seven Hundred Fifty Thousand Dollars ($750,000);

     iii. If the Final EBITDAM is greater than Four Million Dollars ($4,000,000) but
less than Four Million Four Hundred Ninety-Nine Thousand Nine Hundred Ninety Nine
Dollars ($4,499,999), then the Buyer shall pay to the Seller the sum of One Million
Two Hundred Fifty Thousand Dollars ($1,250,000);

     iv. If the Final EBITDAM is greater than Four Million Five Hundred Thousand
Dollars ($4,500,000) but less than Four Million Nine Hundred Ninety-Nine Thousand
Nine Hundred Ninety Nine Dollars ($4,999,999), then the Buyer shall pay to the
Seller the sum of One Million Seven Hundred Fifty Thousand Dollars ($1,750,000); or

     v. If the Final EBITDAM is greater than Five Million Dollars ($5,000,000) then
the Buyer shall pay to the Seller the sum of Two Million Five Hundred Thousand
Dollars ($2,500,000).

     (c) In no event shall the aggregate amount of the payments made to the Seller under
Section 2.4(b) for the EBITDAM Period exceed the sum of Three Million Five Hundred Thousand
Dollars ($3,500,000) (the “Earn-Out Cap”). The Buyer’s obligation

8

 

to make Earn-Out Payments under this Section 2.4 shall expire on such date as the
aggregate Earn-Out Payments to the Seller equal the Earn-Out Cap.

     (d) During the EBITDAM Period, if the Buyer transfers or sells all or substantially all
of the assets of the Company (other than to an Affiliate of Buyer, which Affiliate assumes
the obligation of the Buyer and the Company under this Section 2.4); or merges, consolidates
or enters into a reorganization of Buyer with any third party (other than an Affiliate of
Buyer, which Affiliate assumes the obligation of the Buyer and the Company under this
Section 2.4); sells all or substantially all of its stock in the Company or Buyer to a third
party (other than an Affiliate of Buyer, which Affiliate assumes the obligation of the Buyer
and the Company under this Section 2.4) (collectively and individually “Triggering
Event”), then at the time of the closing of the Triggering Event, the Buyer shall pay to
the Seller the balance of the Earn-Out Payment up to the Earn-Out Cap; provided, however,
that in no event shall the initial public offering of the Company’s or the Buyer’s
securities be considered a Triggering Event..

     (e) In addition to the EBITDAM Statement, Buyer shall provide to Seller quarterly
financial statements of the Company, during the EBITDAM Period. In the event the Earn-Out
Payments to Seller reach the Earn-Out Cap, then Buyer shall not deliver any further EBITDAM
Statements.

     (f) Seller shall have the right to assign, by written assignment as forwarded to Buyer,
all or any part of an EBITDAM Payment when earned for a particular year during the EBITDAM
Period.

     3. Representations and Warranties of Seller and the Company 

          Seller and the Company, jointly and severally, make the representations and warranties
contained in this Section (including Sections 3.1 — 3.28) to Buyer, intending that Buyer rely on
each of such representations and warranties in order to induce Buyer to enter into and complete the
transactions contemplated by this Agreement. The representations and warranties of the Seller
shall survive the consummation of the transactions contemplated by this Agreement until the
expiration of eighteen (18) months from the Closing Date, provided that: (a) in the case of fraud,
Seller’s representations and warranties shall survive the consummation of such transactions without
any time limit, (b) subject to clause (a), Seller’s representations and warranties contained in
Sections 3.12, 3.18, 3.24 and 3.25 shall survive the consummation of

9

 

such transactions until the expiration of applicable statutes of limitation and any extensions
of such limitations plus ninety (90) days, and (c) subject to clause (a), Seller’s representations
and warranties contained in Sections 3.1, 3.3, 3.4, 3.5, and 3.23, shall survive consummation of
such transactions without any time limit. The representations and warranties of the Company shall
terminate upon completion of, and shall not survive the Closing. When reference is made to the
Knowledge of the Company, the term “Knowledge of the Company,” shall mean and include the
actual knowledge of any of the directors or officers of the Company (including, without limitation,
Michael P. Valentine), after due inquiry by the Seller with the management employees of the Company
and/or the advisors of the Company, with respect to the matter in question.

          3.1 Execution and Validity.

          The execution and delivery of this Agreement by the Company has been authorized by its board
of directors and all of its shareholders. The Company and the Seller have the full right, power
and authority to enter into, and the ability to perform his or its obligations under this Agreement
and all other agreements and instruments contemplated by this Agreement. This Agreement has been
duly executed and delivered by the Company and the Seller and is a legal, valid and binding
agreement of the Company and the Seller, enforceable in accordance with its terms. The other
agreements and instruments to be executed and delivered by the Company and the Seller pursuant
hereto will be, when executed and delivered by them, legal, valid and binding agreements of the
Company and the Seller, enforceable in accordance with their respective terms.

          3.2 Organization and Qualification.

          The Company (a) is duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation, and (b) has all requisite corporate power and authority to carry on
its businesses as such businesses are presently conducted and to own or lease and to operate its
assets and business in the places where its business is now conducted and where its assets are now
owned, leased or operated. Schedule 3.2 consists of the articles of incorporation of GTS and the
articles of organization of Direct (together, the “Charter”) and the bylaws of GTS and the
operating agreement of Direct, which are true, accurate and complete, and reflect all amendments
made as of the date of this Agreement, and also includes a true and complete list of the
jurisdictions in which the Company is duly qualified and in good standing as

10

 

a foreign corporation or limited liability company, which are, in each instance, the only
jurisdictions where the nature of the activities conducted by the Company or the nature of the
assets owned, leased or operated by the Company requires such qualification and where the failure
to so qualify has had, or could reasonably be expected to have, a Material Adverse Effect.

          3.3 Capitalization of the Company.

          Schedule 3.3 sets forth as to GTS (a) its authorized capital by class and authorized number of
shares and par value; (b) the number of issued and outstanding shares of capital stock of each
class; and (c) the record and beneficial owners of all issued and outstanding shares of capital
stock. All of the issued and outstanding shares of capital stock of GTS are duly authorized,
validly issued, fully-paid and nonassessable. Schedule 3.3 also sets forth as to Direct (a) its
authorized units; (b) the number of issued and outstanding units; and (c) the record and beneficial
owner of all issued and outstanding units of Direct. Except as set forth in Schedule 3.3, the
Company does not own, directly or indirectly, any shares of capital stock or other securities or
equity related interests of any other corporation or other entity, or is not a partner in any
partnership or a member of any joint venture.

          3.4 Absence of Encumbrances.

          Except as set forth in Schedule 3.4, Seller is the record and beneficial owner of all of the
issued and outstanding stock of GTS and all of the issued and outstanding units of Direct, free and
clear of any liens, pledges, claims, options, proxies, restrictions, agreements, charges and
encumbrances of any kind (“Encumbrances”) and no shares of capital stock or units are held
in the Company’s treasury (i.e., issued but not outstanding shares of capital stock or units), and
there are no pending or, to Seller’s and the Company’s knowledge, threatened claims or proceedings
which would impair or encumber any of the Shares or any other shares of capital stock of GTS or any
other units of Direct. Any Encumbrances shall be paid or otherwise discharged at the Closing, and
upon consummation of the transactions contemplated by this Agreement, Buyer will own, free and
clear of any Encumbrances, title to all of the Shares.

          3.5 Options and Warrants.

          Except as set forth in Schedule 3.5, the Company does not have any outstanding securities,
options, warrants, agreements or other instruments pursuant to which any entity, trust or
individual (“Person”) has or may have any right to subscribe for or acquire any shares of
the capital stock of GTS or any securities convertible into or exchangeable for shares of the
capital

11

 

stock of GTS or any right to subscribe for or acquire any units of Direct, or any other
securities convertible into or exchangeable for units in Direct.

          3.6 Absence of Violations.

          Except as set forth in Schedule 3.6, neither the execution nor delivery of this Agreement or
of any of the other agreements and instruments contemplated by this Agreement, nor the consummation
of the transactions contemplated by this Agreement or such other agreements and instruments will
(a) conflict with or result in the breach of any term or provision of, or constitute a default
under, or give any third-party the right to accelerate any obligation under, any charter provision,
bylaw, contract, agreement indenture, deed of trust, instrument, order, law or regulation to which
the Company or the Seller is a party or by which the Company or the Seller or any of their assets
or properties are in any way bound or obligated or (b) result in the creation of any Encumbrance
upon any of the Shares or the assets or properties of the Company, including, without limitation,
the shares of capital stock of GTS or the units of Direct.

          3.7 Consents.

          Except as set forth in Schedule 3.7, (a) no consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any Governmental Authority is
required on the part of the Company or the Seller in connection with the transactions contemplated
by this Agreement; and (b) no consent, approval, waiver or other action by any Person under any
contract, instrument or other document is required or necessary for the execution, delivery and
performance of this Agreement by the Company or the Seller, or the consummation by the Company and
the Seller of the transactions contemplated by this Agreement. Except as set forth in Schedule 3.7,
all consents described in Schedule 3.7 have been obtained and are in full force and effect.

          3.8 Compliance.

          Neither the Seller nor the Company nor its business, nor the use, operation or maintenance of
any of its assets or properties, is in or constitutes a default under, or is in violation of or
contravenes, any applicable (including, without limitation, any Tax, health, employment, customs or
interstate or international commerce) statute, law, ordinance, decree, order, rule or regulation of
any Governmental Authority. Neither the Seller nor the Company has, nor has any entity or
individual acting on behalf of the Seller or the Company made any payment of funds prohibited by
law that has or could reasonably be expected to result in a

12

 

liability to the Company, and no funds of the Seller or Company have been set aside to be used
for any such payment.

          3.9 Financial Statements.

          The financial statements described in Sections 3.9.1 and 3.9.2 are referred to in this
Agreement as the “Financial Statements.”

               3.9.1 Schedule 3.9.1 consists of the true and complete copies of the following:

	 	(i)	 	balance sheets of GTS as of December 31, 2005 and December 31,
2006 and the related statements of operations and retained earnings and of cash
flows for the years then ended, together with related notes, as reviewed by the
Company’s certified public accountants;
	 
	 	(ii)	 	balance sheets of Direct as of December 31, 2005 and December
31, 2006 and the related statements of operations and retained earnings and
cash flows for the years then ended, together with related notes, as compiled
by the Company’s certified public accountants; and
	 
	 	(iii)	 	a balance sheet of the Company as of December 31, 2007 and the
related statements of operations and retained earnings and cash flows for the
year then ended, together with related notes, as audited by the Company’s
certified public accountants.

               3.9.2 Schedule 3.9.2 consists of the unaudited balance sheet of the Company as of January 31,
2008, as prepared internally by the Company (the “Current Balance Sheet”), and the related
statements of operations and retained earnings and of cash flows for the one-month period ended on
such date.

               3.9.3 Except as set forth on Schedule 3.9.3, all of such Financial Statements present fairly
in all material respects the financial condition, results of operations and cash flows of the
Company for the dates or periods indicated thereon in accordance with GAAP applied on a consistent
basis throughout the period indicated, except that the interim Financial Statements lack footnote
disclosure and are subject to normal year-end adjustments, none of which adjustments are or will be
material.

               3.9.4 Except as set forth in Schedule 3.9.4, there has been no change in accounting methods of
the Company since December 31, 2007.

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               3.9.5 Except as otherwise set forth in Schedule 3.9.5, the accounts receivable reflected on
the Current Balance Sheet and all of the Company’s accounts receivable arising since the date of
the Current Balance Sheet arose from bona fide transactions in the ordinary course of business, and
the goods and services involved have been sold, delivered and performed to the account obligors,
and no further filings (with governmental agencies, insurers or others) are required to be made, no
further goods are required to be provided and no further services are required to be rendered in
order to entitle the Company to collect the accounts receivable in full. Except as set forth in
Schedule 3.9.5, no such account has been assigned or pledged to any other person, firm or
corporation, and, except only to the extent fully reserved against as set forth in Current Balance
Sheet, no defense or set-off to any such account has been asserted by the account obligor or
exists.

          3.10 Absence of Undisclosed Liabilities.

     Except for (i) the liabilities reflected on the Company’s Current Balance Sheet, (ii) trade
payables and accrued expenses incurred since date of the Current Balance Sheet in the ordinary
course of business, (iii) executory contract obligations under (x) Contracts listed on Schedule
3.14, and/or (y) Contracts not required to be listed on Schedule 3.14, the Company does
not have any liabilities or obligations (whether accrued, absolute, contingent, known or otherwise,
and whether or not of a nature required to be reflected or reserved against in a balance sheet in
accordance with GAAP), including but not limited to liabilities for violation of Legal
Requirements, breach of Contract, or tort.

          3.11 No Material Adverse Change.

          Except as disclosed in Schedule 3.11, since the date of the Current Balance Sheet to the
Closing Date, there has not been:

               3.11.1 Any material adverse change in the business, operations, affairs, properties, or assets
of the Company;

               3.11.2 Any damage, destruction or loss (whether or not covered by insurance) materially and
adversely affecting the business, operations, affairs, properties, or assets of the Company;

               3.11.3 Any labor dispute, strike, work stoppage, union activity or any threatened union
activity which is likely to materially and adversely affect the business or operations of the
Company;

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               3.11.4 Excepting the distribution of all cash in the Company to the Seller prior to Closing,
and the payment of certain extraordinary bonuses to the Employees of the Company related to the
sale hereunder, which bonuses shall be paid by the Company at Closing and which are set forth in
Schedule 3.11 (which bonuses shall be considered Funded Indebtedness), any increase in salary,
wages, bonus, commission or other compensation to any employees of the Company, other than routine
increases in the ordinary course of business and consistent with past practices; or any increase in
salary, wages, bonus, commission or other compensation to any director or officer of the Company;

               3.11.5 Any payment or commitment to pay any severance or termination pay to any officers or
directors of the Company or to the Seller;

               3.11.6 Any theft, damage, destruction, casualty, loss, condemnation or eminent domain
proceeding materially and adversely affecting the Company, whether or not covered by insurance;

               3.11.7 Any sale, assignment or transfer of any of the assets of the Company, except in the
ordinary course of business and consistent with past practices;

               3.11.8 Any other material transaction, agreement, contract or commitment entered into by the
Company, except in the ordinary course of business and consistent with past practices;

               3.11.9 Any non-cash dividend or any other non-cash distribution of any kind declared, made or
paid with respect to the capital stock or units of the Company;

               3.11.10 Any change in the accounting principles, methods, estimates or practices (including,
without limitation, depreciation, amortization or inventory valuation) followed by the Company; and

               3.11.11 Any agreement or understanding to do, or which results or is reasonably likely to
result in, any of the actions, events or circumstances described in Sections 3.11.1-3.11.10.

          3.12 Tax Matters.

               3.12.1 The Company has collected and/or withheld, as applicable, and timely paid all Taxes
required to be collected, withheld and/or paid by the Company (whether or not required to be shown
on any Tax Return). The Company does not know nor does it have knowledge of any deficiency for
Taxes or claim for additional Taxes or interest on or penalties in

15

 

connection with such Taxes which have been asserted, threatened to be asserted or proposed against
the Company.

               3.12.2 Schedule 3.12.2 sets forth all jurisdictions in which the Company has filed or is
required to file returns, declarations, reports and/or statements for or with respect to Taxes and
lists the type of Tax covered or to be covered by each such filing. Except as set forth in Schedule
3.12.2, the Company has timely filed all Tax Returns that it was required to file, and such Tax
Returns are true, correct and complete in all respects. To the Knowledge of the Company, there are
no jurisdictions in which the Company does not file Tax Returns or pay Taxes that the Company is
required to file Tax Returns or pay Taxes. Since the date of the Current Balance Sheet, excepting
extraordinary bonuses to be paid at Closing and their related payroll taxes, the Company has not
incurred any liability for Taxes outside the ordinary course of business consistent with past
custom and practice.

               3.12.3 Schedule 3.12.3 sets forth the status of any federal, state, or local tax audits of the
Company for each fiscal year for which the statute of limitations has not expired, including the
amounts of any deficiencies, additions or proposed adjustments to Taxes, interest and penalties
that have been made, proposed, asserted or assessed, and the amounts of any payments made by the
Company with respect to such Taxes. Except as set forth in Schedule 3.12.3, the Company has no
knowledge that any deficiency, addition or adjustment will be made, proposed, asserted or assessed.

               3.12.4 Except as set forth in Schedule 3.12.4, the Company has not extended the time in which
any Tax may be assessed or collected by any taxing authority. The Company does not have a
non-accountable expense reimbursement arrangement within the meaning of Treasury Regulations
Section 1.62-2(c). The Company does not have and has not had a permanent establishment in any
foreign country and does not and has not engaged in a trade or business (for purposes of
determining whether the Company owes any foreign Taxes or is required to file any foreign Tax
Returns) in any foreign country. No taxing authority is asserting or, to the Knowledge of the
Company, threatening to assert a claim against the Company under or as a result of Section 482 of
the Code or any similar provision of any foreign, state or local Tax law. The Company will not be
required to include any item of income in, or exclude any item of deduction from, taxable income
for any taxable period (or portion of any taxable period) after the Closing Date as a result of any
(i) closing agreement as described in

16

 

Section 7121 of the Code (or any corresponding or similar provision of state, local or non-U.S. Tax
law), (ii) installment sale or open transaction disposition occurring on or prior to the Closing
Date, or (iii) prepaid amount received on or prior to the Closing Date.

               3.12.5 Except as set forth in Schedule 3.12.5, the provisions for Taxes on the Current Balance
Sheet are sufficient for the payment of all unpaid Taxes owed by the Company, whether or not
assessed or disputed, as of the date of the Current Balance Sheet and for all prior years and
periods as to which the applicable period of limitations has not expired. The Company has timely
paid any estimated federal or other income Taxes which it was required to pay as of the date
hereof.

               3.12.6 Except as set forth in Schedule 3.12.6, there is no Tax audit or proceeding now in
progress, pending or, to the Knowledge of the Company, threatened against or with respect to the
Company.

               3.12.7 Except as set forth in Schedule 3.12.7, the Company is not currently and the Company in
the past has not been a party to any litigation or pending litigation relating to Taxes.

               3.12.8 The unpaid Taxes of the Company did not, as of the dates of the Financial Statements,
exceed the reserve for Tax liability (excluding any reserve for deferred Taxes established to
reflect timing differences between book and Tax income) set forth on the face of the balance sheets
(rather than in any notes thereto) contained in the Financial Statements. Since the date of the
Current Balance Sheet, the Company has not incurred any liability for Taxes outside the ordinary
course of business consistent with past custom and practice. As of the Closing Date, the unpaid
Taxes of the Company will not exceed the reserve for Tax liability (excluding any reserve for
deferred Taxes established to reflect timing differences between book and Tax income) set forth on
the face of the Company’s books and records (rather than in any notes thereto).

               3.12.9 The Company (i) has not agreed, and is not required, to make any adjustment under
Section 481(a) on the Code by reason of a change in accounting method or otherwise for any taxable
period (or portion thereof) ending after the Closing Date; (ii) has not made an election, or is
required to treat any of its assets as owned by another Person pursuant to the provisions of
Section 168(f) of the Internal Revenue Code of 1954 or as tax-exempt bond

17

 

financed property or tax-exempt use of property within the meaning of Section 168 of the Code;
(iii) does not own any property that is subject to a “section 467 rental agreement” as defined in
Section 467 of the Code; and (iv) has not made any of the foregoing elections and is not required
to apply any of the foregoing rules under any comparable state or local Tax provision.

               3.12.10 There are no Tax-sharing agreements or similar arrangements (including indemnity
arrangements) with respect to or involving the Company, and, after the Closing Date, the Company
will not be bound by any such Tax-sharing agreements or similar arrangements entered into prior to
the Closing or have any liability thereunder for amounts due in respect of periods prior to the
Closing Date.

               3.12.11 The Company has not been a member of an affiliated group filing a consolidated federal
income Tax Return (other than a group the common parent of which is the Company). The Company does
not have any material liability for the Taxes of any Person (other than Taxes of the Company) (i)
under Treasury Regulations Section 1.1502-6 (or any similar provision of state, local or foreign
law), (ii) as a transferee or successor, (iii) by contract, or (iv) otherwise.

               3.12.12 The Company has not distributed the stock of any corporation in a transaction
satisfying the requirements of Section 355 of the Code within the last five (5) years, and the
stock of the Company has not been distributed in a transaction satisfying the requirements of
Section 355 of the Code within the last five (5) years.

               3.12.13 The Company has not entered into any transaction identified as a “reportable
transaction” for purposes of Treasury Regulations Sections 301.6011-4(b). The Company has not
entered into any transaction such that, if the treatment claimed by it were to be disallowed, the
transaction would constitute a substantial understatement of federal income tax within the meaning
of Section 6662 of the Code, then it believes that it has either (i) substantial authority for the
tax treatment of such transaction or (ii) disclosed on its Tax Return the relevant facts affecting
the tax treatment of such transaction.

               3.12.14 Each of GTS and Direct has and has had at all times (since January 1, 2005 in the case
of GTS and since October 6, 1999 in the case of Direct) a valid election in effect to be treated as
an “S corporation” within the meaning of Section 1361 and Section 1362 of the Code and any
comparable provision of state or local law at all times during

18

 

its existence through and including the Closing Date (the “S Election”), and the S Election
has never been terminated or revoked. Each state in which the Company is required to file a Tax
Return has a comparable law to Sections 1361 and 1362 of the Code. Neither Company nor the Seller
has taken any action that could reasonably be expected to cause a termination of the Company’s
election to be treated as an “S corporation” under Section 1362 of the Code.

               3.12.15 The Company has not, in the past 10 years, acquired assets from another corporation in
a transaction in which the Company’s tax basis was determined, in whole or in part, by reference to
the tax basis of the acquired assets in the hands of the transferor or acquired the stock of any
corporation that is a qualified subchapter S subsidiary.

          3.13 Litigation and Governmental Matters.

          Except as described in Schedule 3.13, (a) there is no action, suit or proceeding that has been
(i) filed and served, whether or not purportedly on behalf of the Company or the Seller, at law or
in equity, or before or by any federal, state, local or other governmental department, commission,
board, bureau, agency, taxing or other authority or instrumentality, which is pending, or (ii) to
the Knowledge of the Company, filed but not served or threatened, against (including, but not
limited to, counterclaims), the Company or the Seller; and (b) the Company or the Seller are not in
default with respect to any final judgment, writ, injunction, decree, rule or regulation of any
court or any federal, state, local or other governmental department, commission, board, bureau,
agency or instrumentality.

          3.14 Contracts and Other Agreements.

          Schedule 3.14 sets forth a list of all of the following contracts and other arrangements,
understandings and agreements (collectively, the “Contracts”), to which the Company is a
party or by or pursuant to which the Company or any of its assets or properties are bound or
subject:

               3.14.1 Contracts with any current or former officer, director, shareholder, employee,
consultant, agent or other representative of the Company;

               3.14.2 Contracts with any labor union or association representing any employee of the Company;

               3.14.3 Contracts for the sale of any of the assets or properties of the Company, other than in
the ordinary course of business, or for the grant to any Person of any

19

 

options, rights of first refusal, or preferential or similar rights to purchase any of such assets
or properties;

               3.14.4 Partnership or joint venture agreements;

               3.14.5 Contracts containing covenants of the Company or the Seller not to compete in any line
of business or with any Person or covenants of any other Person not to compete with the Company or
the Seller in any line of business;

               3.14.6 Contracts relating to the acquisition by the Company of any operating business or the
capital stock of any other Person;

               3.14.7 Contracts requiring the payment by the Company to any Person of a commission or fee;

               3.14.8 Contracts for the payment of fees or other consideration to the Seller or any officer
or director of the Company;

               3.14.9 Contracts relating to the borrowing of money;

               3.14.10 Leases of real or personal property;

               3.14.11 Advertising or marketing contracts; and

               3.14.12 All other Contracts, whether or not made in the ordinary course of business.

The Company has provided to Buyer true and complete copies of all of the Contracts of the Company
(and all amendments, waivers or other modifications to such Contracts) and a summary of all
material terms for any oral Contracts, if any, as listed in Schedule 3.14. All of the Contracts
are valid, binding and in full force and effect and enforceable in accordance with their respective
terms and conditions and have been made in the ordinary course of the Company’s business and except
as described in Schedule 3.14, there is no (a) existing default under or breach by the Company or,
to the Knowledge of the Company, by any other party of any such Contract or (b) condition which,
with the passage of time or notice or both, is reasonably likely to constitute such a default by
the Company or, to the Knowledge of the Company, any other party to any such instrument. Except as
set forth in Schedule 3.14, there has been no termination or, to the Knowledge of the Company,
threatened termination or notice of default under any of the Contracts, and the transactions
contemplated by this Agreement will not result in or give rise to the termination or default of any
such Contract. Except as set forth in Schedule 3.14, there has not occurred, and the consummation
of the transactions contemplated

20

 

by this Agreement will not result in, any event or circumstance with respect to which
indemnification payments are required under any of the Contracts.

          3.15 Real Estate.

               3.15.1 The Company does not own (and has not owned) any real property or interest therein.

               3.15.2 Schedule 3.15 sets forth a list of all leases, licenses or similar agreements relating
to the Company’s use or occupancy of real property owned by a third party (“Leases”), true
and correct copies of which have previously been furnished to Buyer, in each case setting forth the
lessor and lessee thereof, the date of the Lease, and the street address of each property covered
thereby (the “Leased Premises”). The Leases are in full force and effect and have not been
amended in writing or otherwise, and no party thereto is in default or breach under any such Lease.
No event has occurred which, with the passage of time or the giving of notice or both, would cause
a material breach of or default under any of such Leases.

               3.15.3 The Company has a valid leasehold interest in the Leased Premises, free and clear of
any Encumbrances, covenants and easements or title defects that have had or could reasonably be
expected to have an adverse effect on the Company’s use and occupancy of the Leased Premises. The
portions of the buildings located on the Leased Premises that are used in the business of the
Company are in good repair and condition, normal wear and tear excepted, and are in the aggregate
sufficient to satisfy the Company’s current and reasonably anticipated normal business activities
as conducted thereon and, to the Knowledge of the Company, there is no latent material defect in
the improvements on any Leased Premises, the structural elements thereof, the mechanical systems
(including, without limitation, all heating, ventilating, air conditioning, plumbing, electrical,
utility and sprinkler systems) therein, the utility system servicing such Leased Premises and the
roofs which have not been disclosed to Buyer in writing prior to the date of this Agreement.
Each of the Leased Premises (a) has direct access to public roads or access to public roads by
means of a perpetual access easement, such access being sufficient to satisfy the current and
reasonably anticipated future transportation requirements of the business conducted at such parcel;
and (b) is served by all utilities in such quantity and quality as are necessary and sufficient to
satisfy the current and reasonably anticipated future business activities conducted at such parcel.
Neither the Company nor any of its Affiliates has received notice of (a) any condemnation, eminent
domain or similar proceeding

21

 

affecting any portion of the Leased Premises or any access thereto, and, to the Knowledge of the
Company, no such proceedings are contemplated, (b) any special assessment or pending improvement
liens to be made by any Governmental Authority which could reasonably be expected to affect the
Leased Premises, or (c) any violations of building codes and/or zoning ordinances or other
governmental regulations with respect to the Leased Premise

          3.16 Suppliers and Customers.

               3.16.1 Schedule 3.16 sets forth (i) the ten (10) most significant suppliers (such significance
being measured by the dollar amount of goods or services purchased by the Company from such
supplier) of the Company during the year ended December 31, 2007, together with the dollar amount
of goods (or services) purchased by the Company from each such supplier during each such period,
and (ii) the twenty (20) most significant customers (such significance being measured by the dollar
amount of Products purchased by such customers) of the Company during the year ended December 31,
2007, together with the dollar amount of Products sold by the Company to each such customer during
each such period. Except as otherwise set forth in Schedule 3.16, the Company maintains good
relations with all suppliers and customers listed or required to be listed in Schedule 3.16, as
well as with governments, partners, financing sources and other parties with whom the Company has
significant relations, and no such party has canceled, terminated or to the Knowledge of the
Company, made any threat to the Company to cancel or otherwise terminate its relationship with the
Company or to materially change the quantity, pricing or other terms applicable to its sale of
products or services to the Company or its direct or indirect purchase of Products from the
Company.

          3.17 Compensation of Employees.

          Schedule 3.17 contains a complete and accurate list of all current directors, officers and
employees of the Company, together with the current job title, aggregate remuneration rate (bonus,
commission and salary) and accrued but untaken vacation and sick leave for each such individual.
Schedule 3.17 also contains a description of all employment agreements which the Company has with
any of its officers or employees, all of which agreements are listed in Schedule 3.17.

          3.18 Employee Benefit Plans.

               3.18.1 Schedule 3.18.1 contains a true and complete list of each employee benefit plan,
program, agreement or arrangement including, without limitation, any

22

 

“employee benefit plan” as defined in Section 3(3) of the Employee Retirement Income Security Act
of 1974, as amended (“ERISA”), maintained or contributed to or required to be contributed
to by the Company, for the benefit of any employee or terminated employee of the Company (the
“Plans”).

               3.18.2 The Company does not participate currently or ever participated in, and the Company is
not required currently or has not ever been required to contribute to or otherwise participate in,
any “multi-employer plan,” as defined in Sections 3(37)(A) and 4001(a)(3) of ERISA and Section
414(f) of the Code.

               3.18.3 True and complete copies of (a) each of the Plans and related trust agreements, (b) the
most recent financial statement with respect to each of the Plans and the most recent actuarial
report prepared with respect to any of such Plans that is funded, (c) the most recent determination
letter, if any, issued by the Internal Revenue Service (“IRS”) for each Plan qualified
under Section 401(a) of the Code, (d) the most recent summary plan description for each Plan for
which a summary plan description is required and (e) the three most recent annual reports (Form
5500) filed with the IRS with respect to the Plans have been furnished to Buyer.

               3.18.4 The Company has performed all obligations required to be performed by it under, is not
in default under or in violation of, and has no knowledge of any default or violation by any other
party to, any Plans. With respect to each Plan, no event has occurred and there exists no
condition or set of circumstances in connection with which the Company is reasonably likely to be
subject to any liability under the terms of the Plans, ERISA, the Code or other applicable law.

               3.18.5 Each Plan has been operated and administered in accordance with its terms and in
compliance with applicable laws including, without limitation, the applicable provisions of ERISA
and the Code (including applicable rules and regulations).

               3.18.6 Neither the execution and delivery of, nor the consummation of the transactions
contemplated by, this Agreement will (a) materially increase any benefits otherwise payable under
any Plan, or (b) result in any acceleration of the time of payment or vesting of any material
benefits.

          3.19 Employee Relations.

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          As of January 1, 2008, the Company has an aggregate of Forty-eight (48) employees. The Company
is not delinquent in payments to any of its employees for any wages, salaries, commissions,
bonuses, vacation pay or other direct compensation for any services performed by them or for
amounts required to be reimbursed to such employees pursuant to the Company’s past practices.
Except as set forth in Schedule 3.17, the Company does not have any contracts of employment or
otherwise with any of its employees.

          3.20 Labor Agreements.

          There are no contracts with labor unions binding upon the Company and the Company has not
agreed to recognize any union or other collective bargaining unit nor has any union or other
collective bargaining unit been certified as representing any employees of the Company. The
Company has no knowledge of any organization effort currently being made or threatened by or on
behalf of any labor union with respect to employees of the Company.

          3.21 Insurance.

          Schedule 3.21 sets forth a complete and correct list of all insurance policies (including,
without limitation, fire, liability, product liability, workmen’s compensation, vehicular,
directors’ and officers’, medical, group health, life, disability, business interruption and other
insurance) held by or on behalf of the Company. Such policies and binders are in full force and
effect; are in conformity with the requirements of all Contracts to which the Company is a party;
and, to the Knowledge of the Company, are valid and enforceable obligations of the insurers in
accordance with their terms. The Company is not in default with respect to any provision contained
in any such policy or binder nor has the Company failed to give any notice or present any claim
under any such policy or binder in due and timely fashion. Except as set forth in Schedule 3.20,
(a) there are no material outstanding unpaid claims under any such policy or binder, and (b) the
Company has timely filed all claims that it may have under any of its insurance policies. The
Company has not received notice of cancellation or non-renewal of any such policy or binder.

          3.22 Bank and Other Accounts.

          Schedule 3.22 sets forth a true and complete list of all bank, savings, brokerage and other
accounts and safety deposit boxes of the Company, including the name of the
depositary, the account numbers and the persons authorized to make deposits and withdrawals or
to effect transactions in such accounts.

24

 

          3.23 Brokers.

          Except for National City Investments, Inc., there is no other agent, broker, investment banker
or other Person acting on behalf of the Company or the Seller or under his or its authority is or
will be entitled to any broker’s fee or finder’s fee or any other commission or similar fee,
directly or indirectly, in connection with the transactions contemplated by this Agreement for
which the Company or the Buyer is or will become liable.

          3.24 Intangible Rights. Schedule 3.24 includes a list and description of all material
foreign and domestic patents, Company-owned software, trademarks, service marks, trade names,
brands and copyrights (whether or not registered and, if applicable, including pending applications
for registration) owned or used by the Company (“Intellectual Property”). The Company owns
or has the right to use and shall as of the Closing Date own or have the right to use the
Intellectual Property. The Company owns or has the right to use and shall as of the Closing Date
own or have the right to use any and all confidential information, know-how, Trade Secrets,
patents, copyrights, trademarks, tradenames, software, and formulae that have been used by the
Company for the ownership, management or operation of its properties (“Intangible Rights”)
including, but not limited to, the Intangible Rights listed on Schedule 3.24 that are
necessary for the operation of the Company’s business as it is currently conducted. Except as set
forth on Schedule 3.24, (i) the Company is the sole and exclusive owner of all right, title
and interest in and to all of the Intangible Rights, and has the exclusive right to use and
license the Intellectual Property, free and clear of any claim or conflict with the Intangible
Rights of others; (ii) no royalties, honorariums or fees are payable by the Company to any person
by reason of the ownership or use of any of the Intangible Rights; (iii) there have been no claims
made against the Company asserting the invalidity, misuse, or unenforceability of any of the
Intangible Rights and, to the Knowledge of the Company, no grounds for any such claims exist; (iv)
the Company has not made any claim of any violation or infringement by others of any of its
Intangible Rights or interests therein and, to the Knowledge of the Company, no grounds for any
such claims exist; (v) the Company has not received any notice that it is in conflict with or
infringing upon the intellectual property rights of others in connection with the Intangible
Rights, and neither the use of the Intangible Rights nor the operation of the Company’s business as
it is currently conducted
or has previously been conducted is infringing or has infringed upon any intellectual property
rights of others; (vi) no interest in any of the Company’s Intangible Rights has been assigned,

25

 

transferred, licensed or sublicensed by the Company to any person other than the Buyer, at the
Closing, pursuant to this Agreement; (vii) to the extent that any item constituting part of the
Intangible Rights has been registered with, filed in or issued by, any Governmental Authority, such
registrations, filings or issuances are listed on Schedule 3.24 and were duly made and
remain in full force and effect; and (viii) to the Knowledge of the Company, there has not been any
act or failure to act by the Company or any of its directors, officers, employees, attorneys or
agents during the prosecution or registration of, or any other proceeding relating to, any of the
Intangible Rights or of any other fact which could render invalid or unenforceable, or negate the
right to use any of the Intangible Rights; (ix) to the extent any of the Intangible Rights
constitutes proprietary or confidential information, the Company has made commercially reasonable
efforts to safeguard such information from disclosure; and (x) subject to the acts of Buyer, all of
the Company’s current Intangible Rights shall remain in
 full force and effect following the Closing
without alteration or impairment.

          3.25 Permits/Environmental Matters.

               (a) Except as otherwise set forth in Schedule 3.25(a), the Company has all permits, approvals,
and licenses, granted by a Governmental Authority with appropriate jurisdiction over the Properties
or business of the Company (“Permits”) necessary for the Company to own, operate, use
and/or maintain its properties and to conduct its business and operations as presently conducted.
Except as otherwise set forth in Schedule 3.25(a), all such Permits are in effect, no proceeding is
pending or, to the Knowledge of the Company, threatened to modify, suspend or revoke, withdraw,
terminate, or otherwise limit any such Permits, and no administrative or governmental actions have
been taken or, to the Knowledge of the Company, threatened in connection with the expiration or
renewal of such Permits which would adversely affect the ability of the Company to own, operate,
use or maintain any of its Properties or to conduct its business and operations as presently
conducted. Except as otherwise set forth in Schedule 3.25(a), (i) no violations have occurred that
remain uncured, unwaived, or otherwise unresolved, or are occurring in respect of any such Permits,
other than inconsequential violations, (ii) no circumstances exist that would prevent or delay the
obtaining of any requisite consent, approval, waiver or other authorization of the transactions
contemplated hereby with
respect to such Permits that by their terms or under applicable law may be obtained only after

26

 

Closing, and (iii) there exists no set of facts which could reasonably be expected to furnish a
basis for the recall, withdrawal or suspension of any Permit, with respect to the Company.

               (b) Except as set forth on Schedule 3.25(b), there are no claims, liabilities, investigations,
litigation, administrative proceedings, whether pending or, to the Knowledge of the Company,
threatened, or judgments or orders relating to any Hazardous Materials (collectively called
“Environmental Claims”) asserted or threatened against the Company or relating to any real
property currently or formerly owned or leased by the Company. Neither the Company nor, to the
actual knowledge of the Company, any current or prior owner, lessee or operator of said real
property, has caused or permitted any Hazardous Material to be used, generated, reclaimed,
transported, released, treated, stored or disposed of in a manner which could reasonably be
expected to form the basis for an Environmental Claim against the Company or the Buyer. Except as
set forth on Schedule 3.25(b), the Company has not assumed any liability of any Person for cleanup,
compliance or required capital expenditures in connection with any Environmental Claim.

               (c) Except as set forth on Schedule 3.25(c), no Hazardous Materials are or were stored or
otherwise located, and no underground storage tanks or surface impoundments are or were located, on
real property currently owned or leased by the Company or formerly owned or leased by the Company,
and no part of such real property or, including the groundwater located thereon, is presently
contaminated by Hazardous Materials.

               (d) Except as set forth on Schedule 3.25(d), the Company has been and is currently in
compliance with all applicable Environmental Laws, including obtaining and maintaining in effect
all Permits required by applicable Environmental Laws.

          3.26 Equipment and Other Tangible Property. Except as otherwise set forth on Schedule
3.26, the Company’s equipment, furniture, machinery, vehicles, structures, fixtures and other
tangible property included in the properties and assets (real, personal or mixed, tangible or
intangible) owned or used by the Company (the “Tangible Company Properties”), other than
inventory, are suitable for the purposes for which intended. The parties acknowledge that the
Buyer has been given full access to the Tangible Company Properties and has been given the right to
inspect, through its employees, agents or contractors, the Tangible Company Properties to determine
the operating condition and state of repair of the Tangible Company Properties.
Consistent therewith, Buyer acknowledges and agrees that it is purchasing the Tangible

27

 

Company Properties “AS IS-WHERE IS,” without any expressed or implied warranties of any kind or
description.

          3.27 Absence of Certain Business Practices. None of the Seller, the Company, nor any other
Affiliate or agent of the Company acting on behalf of the Company or the Seller, acting alone or
together, has (a) received, directly or indirectly, any rebates, payments, commissions, promotional
allowances or any other economic benefits, regardless of their nature or type, from any customer,
supplier, employee or agent of any customer or supplier; or (b) directly or indirectly given or
agreed to give any money, gift or similar benefit to any customer, supplier, employee or agent of
any customer or supplier, any official or employee of any government (domestic or foreign), or any
political party or candidate for office (domestic or foreign), or other person who was, is or could
reasonably be expected to be in a position to help or hinder the business of the Company (or assist
the Company in connection with any actual or proposed transaction), in each case which (i) could
reasonably be expected to subject the Company to any damage or penalty in any civil, criminal or
governmental litigation or proceeding, (ii) if not given in the past, could reasonably be expected
to have had an adverse effect on the business, results of operation, prospects, properties,
financial condition, assets, liabilities, cash flows or working capital of the Company, or (iii) if
not continued in the future, could reasonably be expected to adversely affect the business,
operations or prospects of the Company.

          3.28 Other Information. The written information furnished by the Seller and the Company to
the Buyer pursuant to this Agreement (including, without limitation, information contained in the
exhibits hereto, the Schedules identified herein, the instruments referred to in such Schedules and
the certificates and other documents to be executed or delivered pursuant hereto by the Seller
and/or the Company at or prior to the Closing) is not, nor at the Closing will be, false or
misleading in any material respect, or contains, or at the Closing will contain, any misstatement
of material fact, or omits, or at the Closing will omit, to state any material fact required to be
stated in order to make the statements therein not misleading.

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     4. Representations and Warranties of Buyer.

          The Buyer makes the representations and warranties contained in Sections 4.1-4.7 to the
Seller, intending that the Seller rely on each of such representations and warranties in order to
induce Seller to enter into and complete the transactions contemplated by this Agreement. These
representations and warranties shall survive the consummation of the transactions contemplated by
this Agreement until the expiration of one (1) year from the Closing Date, provided that (a) in
case of fraud these representations and warranties shall survive the consummation of such
transactions without any time limit; and (b) subject to clause (a), Buyer’s Representations and
Warranties contained in Sections 4.1, 4.2, 4.3 and 4.8 shall survive consummation of such
transactions without any time limit.

          4.1 Execution and Validity.

          Subject to the approval of the Board of Directors and/or Investment Committee of the Buyer,
(a) the execution and delivery by the Buyer of this Agreement has been authorized by its Board of
Directors; (b) the Buyer has the full right, power and authority to enter into, and the ability to
perform its obligations under, this Agreement and all other agreements and instruments contemplated
by this Agreement; and (c) this Agreement has been duly executed and delivered by the Buyer and is,
and the other agreements and instruments to be executed and delivered by the Buyer will be, when
executed and delivered by it, legal, valid and binding agreements of the Buyer, enforceable in
accordance with their respective terms.

          4.2 Organization and Ownership.

          The Buyer (a) is duly organized, validly existing and in good standing under the laws of the
state of Delaware, its jurisdiction of incorporation; and (b) has all requisite corporate power and
authority to carry on its business as is presently conducted and to own or lease and to operate its
assets and business in the places where its business is now conducted and where its assets are now
owned, leased or operated.

          4.3 Capitalization of the Buyer.

          Schedule 4.3 sets forth as to the Buyer: (a) its authorized capital by class and
authorized number of shares and par value; (b) the number of issued and outstanding shares of
capital stock of each class; and (c) the record and beneficial owners of all issued and outstanding
shares of capital stock. All of the issued and outstanding shares of capital stock of the Buyer
are duly authorized, validly issued, fully-paid and nonassessable. Except as set forth in Schedule

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4.3, the Buyer does not own, directly or indirectly, any shares of capital stock or other
securities or equity related interests of any other corporation or other equity, or is not a
partner in any partnership or a member of any joint venture.

          4.4 Absence of Violations.

          Except as set forth in Schedule 4.4, neither the execution nor delivery of this Agreement or
of any of the other agreements and instruments contemplated by this Agreement, nor the consummation
of the transactions contemplated by this Agreement or such other agreements and instruments, will
(a) conflict with or result in the breach of any term or provision of, or constitute a default
under, or give any third-party the right to accelerate any obligation under, any charter provision,
bylaw, contract, agreement, indenture, deed of trust, instrument, order, law or regulation to which
the Buyer is a party or by which the Buyer or any of its assets or properties are in any way bound
or obligated; or (b) result in the creation of any Encumbrance upon any of the assets or properties
of the Buyer.

          4.5 Consents.

          Except as set forth in Schedule 4.5, (a) no consent, approval, order or authorization of, or
registration, qualification, designation, declaration or filing with, any Governmental Authority is
required on the part of the Buyer in connection with the transactions contemplated by this
Agreement; and (b) no consent, approval, waiver or other action by any Person under any contract,
instrument or other document is required or necessary for the execution, delivery and performance
of this Agreement by the Buyer, or the consummation by the Buyer of the transactions contemplated
by this Agreement.

          4.6 Litigation and Governmental Matters.

          There is no action, suit or proceeding that has been (a) filed and served, whether or not
purportedly on behalf of the Buyer, at law or in equity, or before or by any federal, state, local
or other governmental department, commission, board, bureau, agency or instrumentality, domestic or
foreign, which is pending; or (b) to the knowledge of the Buyer, (i) filed but not served or (ii)
threatened, against (including, but not limited to, counterclaims) Buyer which involves the
transactions contemplated by this Agreement or the possibility of any judgment or liability which
if determined adversely to the Buyer would result in a material adverse change in the business,
operations, affairs, properties or assets, or in the financial condition of the Buyer; and the
Buyer is not in default with respect to any final judgment, writ, injunction, decree, rule or

30

 

regulation of any court or any federal, state, local or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, which would have a
material adverse effect on the Buyer.

          4.7 Compliance.

          Neither the Buyer nor its business, nor the use, operation or maintenance of any of its assets
or properties, is in or constitutes a default under, or is in violation of or contravenes, any
applicable (including, without limitation, any Tax, health, employment, customs or interstate or
international commerce) statute, law, ordinance, decree, order, rule or regulation of any
Governmental Authority, except where such default, violation or contravention would not have a
Material Adverse Effect on the Buyer. The Buyer has not, nor has any entity or individual acting
on behalf of the Buyer made any payment of funds prohibited by law, and no funds of the Buyer have
been set aside to be used for any such payment. The Buyer has complied with all applicable laws
and regulations in connection with government contracts, if any, and, to the knowledge of the
Buyer, no Person has made any allegation that the Buyer has not so complied.

          4.8 Brokers.

          No agent, broker, investment banker, or other Person acting on behalf of the Buyer or under
its authority is or will be entitled to any broker’s fee or finder’s fee or any other commission or
similar fee, directly or indirectly, in connection with the transactions contemplated by this
Agreement for which Seller will become liable.

          4.9 Other Information

          The written information furnished by the Buyer to the Seller pursuant to this Agreement
(including, without limitation, information contained in the exhibits hereto, the Schedules
identified herein, the instruments referred to in such Schedules and the certificates and other
documents to be executed or delivered pursuant hereto by the Buyer at or prior to the Closing) is
not, nor at the Closing will be, false or misleading in any material respect, or contains, or at
the Closing will contain, any misstatement of material fact, or omits, or at the Closing will omit,
to state any material fact required to be stated in order to make the statements therein not
misleading.

     5. Covenants of the Company and the Seller.

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          In addition to other obligations contained in this Agreement, between the date of this
Agreement and the Closing, unless specifically waived, in writing, by the Buyer, the Seller shall
cause the Company to and the Company shall:

          5.1 Conduct of Business.

          (a) Conduct its business in the ordinary course, consistent with prior practice, including the
distribution of all cash in the Company to the Seller prior to Closing; (b) keep intact its
business and goodwill; (c) comply in all material respects with all of the terms of its Contracts;
(d) use its best efforts to keep available the services of its officers and employees; (e) use its
best efforts to maintain good relationships with the Persons with which it has business
relationships; and (f) promptly notify the Buyer of any material event or occurrence adverse to, or
not in the ordinary and usual course of business or consistent with past practice of, the Company.
Without the prior written consent of the Buyer, which shall not be unreasonably withheld or
delayed, the Seller shall not permit the Company to, and the Company shall not take or permit any
action to:

               5.1.1 Change materially any aspect of its current business;

               5.1.2 Affect or change its capital structure;

               5.1.3 Merge or consolidate with any Person or acquire or sell any stock, units or equity
interest in any other Person;

               5.1.4 Sell, lease, pledge, encumber or otherwise dispose of any of its assets, other than in
the ordinary course of its business;

               5.1.5 Change or amend its Charter or Bylaws or operating agreement;

               5.1.6 Other than in the ordinary course of business, incur any indebtedness, make any
guarantees, or make capital expenditures or investments in excess of $100,000 in the aggregate;

               5.1.7 Subject to the distribution of the Company’s cash to the Seller as provided in Section
5.1.(a), increase the rate of compensation, bonuses or other benefits provided to employees, other
than in the ordinary course of business, or to its officers or directors;

               5.1.8 Settle any threatened or pending material litigation or other proceeding;

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               5.1.9 Make changes in its method or practice of reporting or paying Taxes or in the business,
contractual arrangements or structure of its relations which would have the effect of altering its
Tax treatment or Tax liabilities;

               5.1.10 Redeem or make any liquidating distributions with respect to its capital stock or units
in excess of an aggregate amount not to exceed the sum of Twenty-five Thousand Dollars ($25,000);

               5.1.11 Issue any capital stock or other securities, or grant, or enter into any agreement to
grant, any options, convertibility rights, other rights, warrants, calls or agreements relating to
its securities;

               5.1.12 Accelerate or delay collection of any notes or accounts receivable in advance of or
beyond their regular due dates or the dates when they would have been collected in the ordinary
course of business consistent with past practices;

               5.1.13 Delay payment of any accrued expense, trade payable or other liability beyond its due
date or the date when such liability would have been paid in the ordinary course of business
consistent with past practices;

               5.1.14 Agree or commit to do any of the acts described in Sections 5.1.1-5.1.13.

          5.2 Cooperation.

          Not take any action that would cause the conditions upon which the obligations of the parties
to effect the transactions contemplated by this Agreement not to be fulfilled including, without
limitation, taking or causing to be taken any action that would cause the representations and
warranties made by the Company or the Seller in this Agreement not to be true and correct in all
material respects as of the Closing.

          5.3 Certain Acts.

          Use its best efforts (including, without limitation, executing required documents and paying
any related fees and expenses required by Contract or otherwise) to cause to be fulfilled the
conditions precedent to the Buyer’s obligations to consummate the transactions contemplated by this
Agreement that are dependent upon the actions of the Company or the Seller.

          5.4 Governmental Filings.

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          Promptly make all governmental filings or other submissions, if any, which may be necessary in
order for the Seller to be able to consummate the transactions contemplated by this Agreement.

          5.5 Notice Regarding Changes. The Company shall promptly inform the Buyer in writing of
any change in facts and circumstances that could reasonably be expected to render any of the
representations and warranties made herein by the Company and/or the Seller inaccurate or
misleading if such representations and warranties had been made upon the occurrence of the fact or
circumstance in question. The Buyer shall promptly inform the Seller in writing of any change in
facts and circumstances that could reasonably be expected to render any of the representations and
warranties made herein by it inaccurate or misleading if such representations and warranties had
been made upon the occurrence of the fact or circumstance in question.

          5.6 Access and Information.

               (a) Permit the authorized representatives of the Buyer to have access upon reasonable notice
to the office, facilities, equipment, “Personnel” (i.e., employees, agents, accountants and
independent auditors), properties, books, records and documents of the Company; (b) furnish to the
Buyer’s representatives such information financial records and other documents with respect to the
assets, liabilities, Contracts, operations and businesses of the Company, as the Buyer shall
reasonably request; (c) cause the Personnel of the Company to consult and cooperate with the Buyer
in Buyer’s due diligence efforts; and (d) use its best efforts to enable the authorized
representatives of the Buyer to make the visits described in Section 8.7. The Company shall be
afforded the opportunity to appoint one or more representatives to accompany the representatives of
the Buyer during the course of their access as described in clause (a) of the preceding sentence
and the visits described in Section 8.7. Any failure of the Company to appoint representatives or
the failure of the representatives to accompany or to cause such Persons to cooperate with the
Buyer shall allow the Buyer’s representatives to consult with such Persons without being
accompanied by any representative of the Company.

          5.7 Environmental Assessment. As part of its general due diligence review of the assets,
properties, books and records of the Company, the Buyer shall be entitled at its expense to conduct
prior to Closing an environmental assessment of the Leased Premises listed on Schedule 3.15
(hereinafter referred to as “Environmental Assessment”). The Environmental

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Assessment may include, but not be limited to, a physical examination of the such Leased
Premises and any structures, facilities or equipment located thereon, soil samples, ground and
surface water samples, storage tank testing, review of pertinent records (including but not limited
to, off-site disposal records and manifests), documents and licenses of the Company. The Company
shall use its best efforts to cause its landlords to provide the Buyer or its designated agents or
consultants with the access to such Leased Premises which the Buyer, its agents or consultants
require to conduct the Environmental Assessment, and the Buyer shall provide such landlords with
reasonable indemnification protections in connection with any such Environmental Assessment.

          5.8 Cooperation with Respect to Financing. The Company agrees to provide, and shall cause
its officers, employees and advisers to provide, commercially reasonable cooperation in connection
with the arrangement of the Buyer’s debt financing for the transactions contemplated by this
Agreement, including without limitation, (i) upon reasonable notice and at reasonable times, making
senior management reasonably available to participate in lender and rating agency meetings, due
diligence sessions, and road shows, (ii) cooperating in the Buyer’s preparation of bank/lender
and/or rating agency presentations, offering memoranda, and similar documents, (iii) provided that
no obligations arise unless there is a Closing hereunder, executing and delivering any commitment
letters, pledge and security documents, other definitive financing documents or other reasonably
requested certificates or documents, and (iv) using reasonable commercial efforts to obtain, at the
Buyer’s sole expense, customary certificates of the Company’s chief financial officer, comfort
letters of accountants, legal opinions and real estate title documentation as may be reasonably
requested by the Buyer; provided, however, that nothing in this Section 5.8 shall require the
Company to (i) incur any financial obligation prior to the Closing, or (ii) engage in any
activities that could reasonably be expected to interfere in any material respect with the
operation of the Company’s business.

          5.9 Expenditures.

          Not make any material expenditure other than in the ordinary course of business or as
contemplated by this Agreement without the prior written approval of the Buyer, which approval
shall not be unreasonably withheld or delayed.

          5.10 Taxes.

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          Prepare and timely file, in a manner consistent with applicable laws and regulations, all Tax
Returns for Taxes required to be filed on or before the Closing Date. The Seller shall pay and be
responsible for paying any sales taxes, documentary stamp taxes, income taxes or other taxes or
fees due or owing in connection with the transfer and sale of the Shares.

          5.11 No Shop; Standstill.

          The Company and the Seller shall cause the Company’s officers, directors, employees and other
agents not to, directly or indirectly, take any action to solicit, initiate or encourage any offer
or proposal or indication of interest in a merger, consolidation or other business combination
involving any equity interest in, or a substantial portion of the assets of the Company, other than
in connection with the transactions contemplated by this Agreement. In addition, the Company shall
immediately advise the Buyer of the terms of any unsolicited offer, proposal or indication of
interest that it receives or otherwise becomes aware of.

     6. Covenants of Buyer.

          In addition to other obligations contained in this Agreement, between the date of this
Agreement and the Closing, unless specifically waived, in writing, by the Seller, the Buyer shall:

          6.1 Cooperation.

          Not take any action that would cause the conditions upon which the obligations of the parties
to effect the transactions contemplated by this Agreement not to be fulfilled including, without
limitation, taking or causing to be taken any action that would cause the representations and
warranties made by the Buyer in this Agreement not to be true and correct in all material respects
as of the Closing.

          6.2 Certain Acts.

          Use its best efforts (including, without limitation, executing required documents and paying
any related fees and expenses required by contract or otherwise) to cause to be fulfilled the
conditions precedent to the Seller’s obligations to consummate the transactions contemplated by
this Agreement that are dependent upon the actions of the Buyer.

          6.3 Governmental Filings.

          Promptly make all governmental filings or other submissions, if any, which may be necessary in
order for the Buyer to be able to consummate the transactions contemplated by this Agreement.

36

 

          6.4 Access and Information.

          (a) Permit the authorized representatives of the Seller to have reasonable access upon
reasonable notice to the facilities, equipment, Personnel, properties, books, records and documents
of the Buyer; (b) furnish to the Seller’s representatives such information, financial records and
other documents with respect to the assets, liabilities, contracts, operations and businesses of
the Buyer as the Seller shall reasonably request; and (c) cause the Personnel of the Buyer to
consult and cooperate with the Seller’s due diligence review.

     7. Conditions Precedent to the Obligations of the Company and the Seller. 

          Unless each of the following conditions are satisfied or waived, in writing, by the Seller,
the Seller and the Company shall not be obligated to effect the transactions contemplated by this
Agreement:

          7.1 Representations and Warranties.

          The representations and warranties of the Buyer contained in this Agreement shall be true and
complete in all material respects as at the date of this Agreement and as at the Closing Date (as
if each were made at such time), subject to any actions or changes which may have taken place after
the date of this Agreement which are expressly permitted or contemplated by this Agreement, and
Seller shall have received a certificate signed by the Chairman of the Buyer to that effect.

          7.2 Performance.

          Each of the agreements, obligations, conditions and covenants to be performed or complied with
by the Buyer at or prior to the Closing pursuant to the terms of this Agreement shall have been
fully performed or complied with on or before the Closing Date, including, without limitation, each
of the deliveries to be made by Buyer pursuant to Section 9.3.

          7.3 No Material Adverse Change.

          No material adverse change in the business, properties or assets or in the financial condition
of the Buyer shall have occurred from the date of this Agreement through the Closing Date.

          7.4 Absence of Litigation. 

          There shall be no pending or threatened claim, action, litigation, suit or other proceeding,
either judicial or administrative, against the Company or the Seller or with respect to the Buyer
for the purpose of enjoining or preventing the consummation of this Agreement or

37

 

otherwise claiming
that this Agreement or its consummation is improper or adversely affecting or which would adversely
affect the benefit to Seller of the transactions contemplated by this Agreement.

          7.5 Consents.

          All consents, approvals, permits, estoppel certificates and/or waivers from governmental
authorities and all other Persons necessary to effectuate the transactions contemplated by this
Agreement including, without limitation, consents necessary to permit the continuation in effect of
all of the Contracts have been obtained (and/or in the case of governmental regulations all
applicable time periods shall have expired or been terminated).

          7.6 Due Diligence.

          Representatives of the Seller shall have been afforded full access and opportunities to ask
questions and obtain information, including, without limitation, have been allowed to visit with
representatives of the Buyer and conduct such due diligence relating to the Buyer and its business
which the Seller shall have elected to undertake and such due diligence shall have been completed
to the Seller’s satisfaction.

          7.7 New Legislation.

          No new law has been enacted or legislation proposed which would preclude the transactions
contemplated by this Agreement.

     8. Conditions Precedent to Obligations of Buyer.

          Unless each of the following conditions are satisfied or waived, in writing, by the Buyer, the
Buyer shall not be obligated to effect the transactions contemplated by this Agreement:

          8.1 Representations and Warranties.

          The representations and warranties of the Seller and the Company, as set forth in Sections
3.1, 3.2, 3.3, and 3.23, shall be true and complete in all respects and all other representations
and warranties of the Seller and the Company contained in this Agreement shall be true and complete
in all material respects (other than representations and warranties that are qualified as to
materiality or Material Adverse Effect, which representations and warranties shall
be true and correct in all respects) as at the date of this Agreement and as at the Closing
Date (as if each were made at such time), subject to any actions or changes which may have taken
place after the date of this Agreement which are expressly permitted by this Agreement, and the
Buyer

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shall have received a certificate signed by the Seller and the President of the Company to
that effect.

          8.2 Performance.

          Each of the agreements, obligations, conditions and covenants to be performed or complied with
by the Seller and the Company at or prior to the Closing pursuant to the terms of this Agreement
shall have been fully performed or complied with on or before the Closing Date, including, without
limitation, each of the deliveries to be made by the Seller and the Company, pursuant to Section
9.2.

          8.3 No Material Adverse Change.

No material adverse change in the business, properties or assets or in the financial condition
of the Company shall have occurred from the date of this Agreement through Closing. Except for
matters disclosed in Schedule 3.9 and Schedule 3.11 as to those items excepted under Section
3.11.4, as attached hereto, since the date of the Current Balance Sheet and up to and including the
Closing, there shall not have been any event, circumstance, change or effect that, individually or
in the aggregate, had or could reasonably be expected to have a Material Adverse Effect.

          8.4 Affiliate Arrangements.

Except as expressly set forth on Schedule 8.4 hereto, (i) all agreements, commitments and
understandings between the Company, on the one hand, and any Affiliate thereof (including, but not
limited to, the Seller), on the other hand, shall have been terminated in all respects on terms
satisfactory to the Buyer, (ii) all obligations, claims or entitlements thereunder (but not the
parties’ obligations under this Agreement and any agreements contemplated hereby) shall be
unconditionally waived and released by all such Persons, and (iii) mutual releases providing
evidence of such terminations and waivers, reasonably satisfactory in form and substance to the
Buyer, shall have been executed and delivered to Buyer by each of such Affiliates.

          8.5 Absence of Litigation.

          There shall be no pending or threatened claim, action, litigation, suit or other proceeding,
either judicial or administrative, against the Buyer with respect to the Company or the Seller for
the purpose of enjoining or preventing the consummation of this Agreement or otherwise claiming
that this Agreement or its consummation is improper or which would adversely affect the benefit to
the Buyer of the transactions contemplated by this Agreement.

          8.6 Consents.

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          All consents, approvals, permits, estoppel certificates and/or waivers from governmental
authorities and all other Persons necessary to effectuate the transactions contemplated by this
Agreement including, without limitation, consents necessary to permit the continuation in effect of
all of the Contracts have been obtained (and/or in the case of governmental regulations all
applicable time periods shall have expired or been terminated).

          8.7 Due Diligence.

          Representatives of the Buyer shall have been allowed to visit with the Company, its officers,
employees, agents, accountants, lawyers in a manner reasonably satisfactory to the Buyer and
conduct such due diligence relating to the Company and its businesses which the Buyer shall have
elected to undertake, and Buyer shall be satisfied in all respects with its due diligence
investigation relating to the Company.

          8.8 New Legislation.

          No new law has been enacted or legislation proposed which would preclude the transactions
contemplated by this Agreement or limit the business of the Company.

          8.9 Board and/or Committee Approval.

          The transactions contemplated by this Agreement shall have been approved by the Boards of
Directors and/or Investment Committee of the Buyer.

          8.10 Financing.

          Buyer shall have obtained funding from its financing for the transactions contemplated hereby
on terms substantially similar to those in the debt commitment letters provided by the Buyer to the
Seller.

     9. Closing and Post-Closing Covenants.

          9.1 Time and Place.

          The closing under this Agreement shall take place at 10:00 a.m. on February 29, 2008, at the
offices of Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A., 4775 Munson St.

N.W., Canton, Ohio, or such other time and/or place as may be agreed to by the Buyer and the
Seller (the “Closing” or the “Closing Date”). If all of the conditions set forth
in Sections 7 and 8 are not satisfied by such date, subject to extension as provided in this
Agreement, the Buyer or the Seller, as the case may be in connection with the applicable condition,
shall have the right, but not the obligation, to postpone the Closing from time to time, but not
beyond an additional thirty (30) days in the aggregate. Notwithstanding the foregoing, if the
failure to satisfy a

40

 

condition is a breach of this Agreement, exercise of an option provided in
this Section 9.1 shall not constitute a waiver of such breach or of the right to seek damages for
such breach.

          9.2 Obligations of the Seller and the Company.

          At the Closing, the Seller and/or the Company, as applicable, shall deliver to Buyer:

               9.2.1 The certificate dated as of the Closing Date, as described in Section 8.1;

               9.2.2 Stock certificates and unit certificates together with irrevocable stock or unit powers,
representing the Shares, duly endorsed in blank by the Seller;

               9.2.3 Certified copies of the resolutions of the Board of Directors and the shareholders of
GTS and the members of Direct, all of which are authorizing the execution, delivery and performance
of, and the transactions contemplated by, this Agreement;

               9.2.4 An opinion of counsel for the Seller and the Company in form and substance reasonably
satisfactory to Buyer as to the matters set forth in Exhibit 9.2.4;

               9.2.5 A good standing certificate or its equivalent with respect to the Company from the
jurisdictions in which it is incorporated or organized and each other jurisdiction identified in
Schedule 3.2, in each case dated not more than five business (5) days prior to the Closing Date;

               9.2.6 All required consents, approvals, permits, estoppel certificates and/or waivers, as
required by Section 8.5;

               9.2.7 Employment Agreements executed by Michael P. Valentine, W. Paul Kithcart, Jr., Robert J.
Reitz, and Gregory L. Muhollen in the form of Exhibits 9.2.7 A-C (the “Employment
Agreements”);

               9.2.8 If requested by Buyer, an Amendment and Restatement of, or Assignment of, the Lease
Agreement executed by the Company, Buyer, and GTS Services, LLC for the lease of the Company’s
headquarters in the form of Exhibit 9.2.8;

               9.2.9 If requested by Buyer, a lease agreement for the Cuyahoga Falls, Ohio property, as
executed by the Company and Logistics Concepts, Inc.;

               9.2.10 If requested, in writing, the corporate and limited liability minute books of the
Company and all other books and records, including all financial books and records, of the Company;
and

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               9.2.11 Such other certificates, instruments and documents of transfer, if any, as may be
necessary to consummate the transactions contemplated by this Agreement.

               9.2.12 A general release executed by the Seller in the form of Exhibit 9.2.11.

               9.2.13 A stockholders’ agreement executed by the Seller in the form of Exhibit 9.2.12.

               9.2.14 If requested by Buyer, a landlord lien waiver and estoppel letter relating to each of
the Leased Premises in a form reasonably satisfactory to Buyer and its lenders.

               9.2.15 An “Acknowledgement of Waiver of Vested Benefits in the Group Transportation Services,
Inc. 2000 Stock Option Plan and Release of Options to Company” executed by each holder of stock
options to purchase shares of GTS common stock.

          9.3 Obligations of the Buyer.

          At the Closing, the Buyer shall:

               9.3.1 Deliver to the Seller by wire transfer of immediately available funds the Cash Purchase
Price;

               9.3.2 Deliver to the Seller, duly endorsed, certificate(s) for Parent’s Stock;

               9.3.3 Deliver to the Seller the certificates dated as of the Closing Date as described in
Section 7.1;

               9.3.4 Deliver to the Seller a certified copy of the resolutions of the Board of Directors
and/or the Investment Committee of the Buyer authorizing the execution, delivery and performance
of, and the transactions contemplated by, this Agreement;

               9.3.5 Deliver to the Seller an opinion of counsel for the Buyer, in form and substance
reasonably satisfactory to Seller as to the matters set forth in Exhibit 9.3.5;

               9.3.6 Deliver to Michael P. Valentine, W. Paul Kithcart, Jr., Robert J. Reitz, and Gregory L.
Muhollen the Employment Agreements, in the form of Exhibits 9.2.7 A-C, as executed by the Buyer;

               9.3.7 If requested by Buyer, deliver to GTS Services, LLC, the Assignment of Lease Agreement
for the Company’s headquarters, in the form of Exhibit 9.2.8;

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               9.3.8 Deliver to Michael P. Valentine, W. Paul Kithcart, Jr., Robert J. Reitz, and other
mutually approved management of the Company, a mutually approved stock option plan or program, for
fifteen percent (15%) of the outstanding equity of Buyer or its permitted assignee, pursuant to the
terms of the agreement set forth in Exhibit 9.3.8;

               9.3.9 A stockholders’ agreement executed by the Buyer and all of the remaining stockholders of
Buyer; and

               9.3.10 Deliver to the Seller such other certificates, instruments and documents of transfer if
any, as may be necessary to consummate the transactions contemplated by this Agreement.

          9.4 Books and Records.

The Buyer shall retain after the date of the Closing all financial books and records
pertaining to the business of the Company prior to the Closing for at least three (3) years. After
the Closing, Seller shall be entitled at reasonable times and upon reasonable written notice to the
Buyer to have access to and to make copies of such books and records in connection with matters
relating to Taxes and/or past or future Tax Returns of the Company and/or the Seller.

          9.5 Tax Matters.

          (a) The Seller shall prepare and file (or cause the Company to prepare and file) all income
Tax Returns relating to the Company for taxable periods ending on or prior to the Closing. The
Buyer shall prepare and file (or cause the Company to prepare and file) all other Tax Returns that
are due after the Closing Date that (including Straddle Periods); it being understood that all
Taxes shown as due and payable on such Tax Returns shall be the responsibility of the Buyer, except
for such Taxes which are the responsibility of the Seller pursuant to Section 10.5(a). Such Tax
Returns shall be prepared on a basis consistent with those prepared for prior taxable periods
unless a different treatment of any item is required by
applicable Tax law. With respect to any Tax Return required to be filed with respect to the
Company after the date of the Closing and as to which Taxes are allocable to the Seller under
Section 10.5(a), hereof, the Buyer shall provide the Seller with a copy of such completed Tax
Return and a statement (with which the Buyer will make available supporting schedules and
information) setting forth the amount of Tax shown on such Tax Return that is allocable to the
Seller pursuant to Section 10.5(a) at least 30 days prior to the due date (including any extension
thereof) for filing of such Tax Return. The Seller and the Buyer agree to consult and to attempt

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in good faith to resolve any issues arising as a result of the review of such Tax Return and
statement by the Seller.

          (b) The Seller shall be responsible and liable for the timely payment of any Taxes imposed on
or with respect to the properties, income and operations of the Company for periods prior to the
Closing Date (the “Pre-Closing Tax Periods”) to the extent not accrued on the books of the
Company and included in the computation of Final Working Capital. In the case of any Straddle
Period, the amount of any Taxes based on or measured by income or receipts for the Pre-Closing Tax
Period shall be determined based on an interim closing of the books as of the close of business on
the Closing Date (and for such purpose, the taxable period of any partnership or other pass-through
entity in which a Company holds a beneficial interest shall be deemed to terminate at such time),
and the amount of other Taxes for a Straddle Period that relates to the Pre-Closing Tax Period
shall be deemed to be the amount of such Tax for the entire taxable period multiplied by a fraction
the numerator of which is the number of days in the taxable period ending on the Closing Date and
the denominator of which is the number of days in such Straddle Period.

          (c) The parties shall provide one another with such assistance as may reasonably be requested
by the others in connection with the preparation of any Tax Return, any audit or other examination
by any taxing authority, or any judicial or administrative proceedings relating to liabilities for
Taxes. Such assistance shall include making employees available on a mutually convenient basis to
provide additional information or explanation of material provided hereunder and shall include
providing copies of relevant Tax Returns and supporting material. The parties will provide one
another with any records or information which may be relevant to such preparation, audit,
examination, proceeding or determination.

          9.6 Non-Competition, Non-Solicitation and Non-Disclosure.

               (a) General. In consideration of the payment of the Purchase Price, and in order to
induce the Buyer to enter into this Agreement and to consummate the transactions contemplated
hereby, the Seller hereby covenants and agrees as follows:

     Without the prior written consent of the Buyer, neither the Seller nor any of his Affiliates
shall, for a period commencing on the Closing Date and ending on the earlier of (i) two years
following the expiration of Buyer’s obligation to make Earn-Out Payments pursuant to Section
2.4(c), or (ii) seven (7) years after the Closing Date (the “Non-Compete Period”), (A)
directly or

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indirectly through another Person, acquire or own in any manner any interest in,
manage, control, participate in (whether as an officer, director, employee, partner, agent,
representative, or otherwise), consult with, render services for, provide financing or financial
support to any Person which engages or plans to engage in any facet of the Company’s business or
which competes or plans to compete in any way with the Company’s Business in North America (the
“Territory”), or (B) utilize his special knowledge of the business of the Company and his
relationships with customers, suppliers and others to, directly or indirectly through another
Person, compete with Buyer in any facet of the Company’s business anywhere in the Territory;
provided, however, that nothing herein shall be deemed to prevent Seller from
acquiring through market purchases and owning, solely as an investment, less than one percent (1%)
in the aggregate of the equity securities of any class of any issuer whose shares are registered
under §12(b) or 12(g) of the Securities Exchange Act of 1934, as amended, and/or are listed or
admitted for trading on any United States national securities exchange. The Seller acknowledges
and agrees that the covenants provided for in this Section 9.6(a) are reasonable and necessary in
terms of time, area and line of business to protect the Company’s Trade Secrets. The Seller
further acknowledges and agrees that such covenants are reasonable and necessary in terms of time,
area and line of business to protect the Company’s legitimate business interests, which include its
interests in protecting the Company’s (i) valuable confidential business information, (ii)
substantial relationships with customers throughout the United States, and (iii) customer goodwill
associated with the ongoing business of the Company. The Seller expressly authorizes the
enforcement of the covenants provided for in this Section 9.6(a) by (A) the Buyer, (B) the Buyer’s
permitted assigns, and (C) any successors to the Company’s business.

                    (i) Without the prior consent of the Buyer, the Seller shall not for a period commencing on
the Closing Date and ending on the earlier of (i) two years
following the expiration of Buyer’s obligation to make Earn-Out Payments pursuant to Section
2.4 (c), or (ii) seven (7) years from the Closing Date, directly or indirectly, for himself or any
other Person (A) attempt to employ or enter into any contractual arrangement with any employee or
former employee of the Company, unless such employee or former employee has not been employed by
the Company for a period in excess of nine (9) months, (B) call on, solicit or service any of the
actual customers or suppliers of the Company with respect to any facet of the Company’s business,
nor shall the Seller disclose or use any information relating in any manner

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to the Company’s trade
or business relationships with such customers or suppliers, and/or (C) induce or attempt to induce
any employee or agent of the Company to leave the employ or otherwise cease to perform services for
the Company or any of its Affiliates (including Buyer and its Affiliates), or in any way interfere
with the relationship between the Company (or any of its Affiliates) and any such employee or agent

                    (ii) Without the prior consent of the Buyer, the Seller shall not for a period commencing on
the Closing Date and ending on the earlier of (i) two years following the expiration of Buyer’s
obligation to make Earn-Out Payments pursuant to Section 2.4 (c), or (ii) seven (7) years from the
Closing Date, divulge, communicate, use to the detriment of the Company or use for the benefit of
any other Person or Persons, or misuse in any way, any Confidential Information or Trade Secrets
(collectively “Company Information”) pertaining to the Company and the Company’s business.
Any Company Information now known or hereafter acquired by the Seller with respect to the Company
and the Company’s business shall be deemed a valuable, special and unique asset of the Company that
is received by the Seller in confidence and as a fiduciary, and the Seller shall remain a fiduciary
to the Company with respect to all of such information. In addition, the Seller (a) will receive
and hold all Company Information in trust and in strictest confidence, (b) will take reasonable
steps to protect the Company Information from disclosure and will in no event take any action
causing, or fail to take any action reasonably necessary to prevent, any Company Information to
lose its character as Company Information, (c) except as required by law, will not, directly or
indirectly, use, disseminate or otherwise disclose any Company Information to any third party,
without the prior written consent of the Company or the Buyer, which may be withheld in the
Company’s absolute discretion, and (d) will not directly or indirectly use the name “Group
Transportation Services” or “GTS” or any derivative thereof in any way whatsoever.

                    (iii) Except as provided in Section 9.4, all other books, records, reports, writings, notes,
notebooks, computer programs, equipment, proposals, contracts, customer and referral source lists
and other documents and/or things relating in any manner to the business of the Company (including
but not limited to any of the same embodying or relating to any Company Information), whether
prepared by any of the Seller or otherwise coming into the Seller’s possession, shall be the
exclusive property of the Company and shall not be copied, duplicated, replicated, transformed,
modified or removed from the premises of the Company

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except pursuant to the business of the Company
and shall be returned immediately to the Company on the Company’s request at any time.

               (b) Injunction. It is recognized and hereby acknowledged by the parties hereto that a
breach or violation by the Seller of any or all of the covenants and agreements contained in this
Section 9.6 may cause irreparable harm and damage to the Buyer in a monetary amount which may be
virtually impossible to ascertain. As a result, the Seller recognizes and hereby acknowledges that
the Buyer shall be entitled to an injunction from any court of competent jurisdiction enjoining and
restraining any breach or violation of any or all of the covenants and agreements contained in this
Section 9.6 by the Seller and that such right to injunction shall be cumulative and in addition to
whatever other rights or remedies the Buyer may possess hereunder, at law or in equity. Nothing
contained in this Section 9.5 shall be construed to prevent the Buyer from seeking and recovering
from the Seller damages sustained by it as a result of any breach or violation by the Seller of any
of the covenants or agreements contained in this Section 9.6.

               (c) Savings Provisions. If at the time of enforcement of any of the covenants
contained in Section 9.6(a) above (the “Protective Covenants”), a court shall hold
that the duration, scope or area restrictions stated therein are unreasonable under circumstances
then existing, the parties agree that the maximum duration, scope or area reasonable under such
circumstances shall be substituted for the stated duration, scope or area and that the court shall
be allowed and directed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law. The Seller acknowledges that the Protective Covenants are
reasonable in terms of duration, scope and area restrictions and are necessary to protect the
goodwill of the business of the Company and its Affiliates (including Buyer) and the substantial
investment in the Company made by the Buyer pursuant to this Agreement. The Seller further
acknowledges and agrees that the Protective Covenants are being entered into by him in
connection with the sale by the Seller of the goodwill of the business of the Company pursuant to
this Agreement and not directly or indirectly in connection with any other relationship with the
Buyer or any of its Affiliates.

          9.7 Brokers. Regardless of whether the Closing shall occur, (i) the Seller shall indemnify and hold
harmless the Buyer from and against any and all liability for any brokers or finders’ fees arising
with respect to brokers or finders retained or engaged by the Company or the

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Seller in respect of
the transactions contemplated by this Agreement, and (ii) the Buyer shall indemnify and hold
harmless the Company from and against any and all liability for any brokers’ or finders’ fees
arising with respect to brokers or finders retained or engaged by the Buyer in respect of the
transactions contemplated by this Agreement.

          9.8 Costs and Expenses.

Each of the parties to this Agreement shall bear his or its own expenses incurred in
connection with the negotiation, preparation, execution and closing of this Agreement and the
transactions contemplated hereby (the “Transaction Expenses”); provided,
however, that Seller shall be responsible for and shall discharge all Transaction Expenses
(other than $100,000 of such Transaction Expenses, which shall be borne by the Company) incurred by
or on behalf of the Seller and/or the Company (it being the parties’ agreement that the Company
shall not bear or otherwise be liable for any such expenses in excess of the aforementioned
$100,000).

          9.9 Publicity.

None of the parties hereto shall issue or make, or cause to have issued or made, any public
release or announcement concerning this Agreement or the transactions contemplated hereby, without
the advance approval in writing of the form and substance thereof by each of the other parties,
except as required by law (in which case, so far as possible, there shall be consultation among the
parties prior to such announcement), and the parties shall endeavor jointly to agree on the text of
any announcement or circular so approved or required.

     10. Indemnification.

          10.1 Indemnification by Seller.

          From and after the Closing, the Seller shall indemnify, defend and hold harmless Buyer and its
respective officers, directors, shareholders, employees and agents and their
successors and assigns for, from and against any loss, claim, damage, cost, obligation,
liability, penalty and expense, including all legal and other expenses reasonably incurred in
connection with investigating or defending against any such loss, claim, damage, cost, obligation,
liability, penalty or expense or action in respect of such matters (collectively referred to as
“Section 10 Damages”), occasioned by, arising out of or resulting from any breach or
default of any representation or warranty by, or covenant of, the Seller or the Company contained
in this Agreement or any other agreement provided for in this Agreement or any Funded Indebtedness.
Indemnification under this Section 10 shall constitute the Buyer’s exclusive remedy for

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misrepresentations by the Seller and/or the Company, except in cases of fraud or intentional
misrepresentation. Buyer may pursue other remedies in addition to indemnification for any breach
of contract or covenant and/or for fraud or intentional misrepresentation.

          10.2 Indemnification by Buyer.

          From and after the Closing, Buyer shall indemnify, defend and hold harmless Seller and his
heirs, personal representatives, agents, successors and assigns against any Section 10 Damages
occasioned by, arising out of or resulting from any breach or default of any representation or
warranty by, or covenant of Buyer contained in this Agreement or any other agreement provided for
in this Agreement. Indemnification under this Section 10 shall constitute Seller’s exclusive remedy
for misrepresentations by Buyer, except in cases of fraud or intentional misrepresentation. Seller
may pursue other remedies in addition to indemnification for any breach of contract or covenant
and/or for fraud or intentional misrepresentation.

          10.3 Notice of Indemnification. 

          Upon receipt by any Person entitled to indemnification under Sections 10.1 or 10.2 (an
“Indemnified Party”) of notice of the assertion by any third party of any claim, demand, or
notice (a “Third Party Claim”), such Indemnified Party, if a Third Party Claim is to be
made by it against any Person from whom such indemnification could be sought (the “Indemnifying
Party”) under this Section 10, shall promptly notify in writing the Indemnifying Party of such
Third Party Claim. The failure to provide such notice, however, shall not release the Indemnifying
Party from any of its obligations under Section 10.1 or 10.2, as applicable, except to the extent
that the Indemnifying Party is prejudiced by such failure and shall not relieve the Indemnifying
Party from any other obligation or liability that it may have to the Indemnified Party or otherwise
pursuant to Section 10.1 or 10.2, as applicable. If the Indemnifying Party
acknowledges, in writing, its obligation to indemnify the Indemnified Party against any
Section 10 Damages that may result from a Third Party Claim pursuant to the terms of this Agreement
and the Third Party Claim together with any other Third Party Claims being defended by the
Indemnifying Party is less than the remaining amount of the Cap (defined in Section 10.4), the
Indemnifying Party shall have the right, upon written notice (the “Defense Notice”) to the
Indemnified Party within 30 days after receipt by the Indemnifying Parties of notice of the Third
Party Claim (or sooner if such claim so requires) to participate in the defense and, to the extent
that it may wish, jointly with any other Indemnifying Party similarly notified, assume the defense

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of the action, with counsel reasonably satisfactory to such Indemnified Party; provided, however,
that the Indemnifying Party shall jointly with the Indemnified Party conduct the defense in the
event that the Third Party Claim requests equitable relief. The Defense Notice shall specify the
counsel the Indemnifying Party shall appoint to defend such Third Party Claim (the “Defense
Counsel”) and the Indemnified Party shall have the right to approve the Defense Counsel, which
approval shall not be unreasonably withheld or delayed. In the event the Indemnified Party and the
Indemnifying Party cannot agree on such counsel within ten (10) days after the Defense Notice is
Given, then the Indemnifying Party shall propose an alternate Defense Counsel, which shall be
subject again to the Indemnified Party’s approval, which shall not be unreasonably withheld or
delayed. Any indemnified Party shall have the right to employ separate counsel in any such Third
Party Claim and/or to participate in the defense thereof, but the fees and expenses of such counsel
shall not be included as part of any Section 10 Damages incurred by the Indemnified Party unless
(i) the Indemnifying Party shall have failed to give the Defense Notice within the prescribed
period, (ii) such Indemnified Party shall have received an opinion of counsel, reasonably
acceptable to the Indemnifying Party, to the effect that the interest of the Indemnified Party and
the Indemnifying Party with respect to the Third Party Claim are sufficiently adverse to prohibit
the representation by the same counsel of both parties under applicable ethical rules, or (iii) the
employment of such counsel at the expense of the Indemnifying Party has been specifically
authorized by the Indemnifying Party. Any such Indemnifying Party shall not be liable to any such
Indemnified Party on account of any settlement of any claim or action effected without the consent
of such Indemnifying Party unless the Indemnifying Party had determined not to assume the defense
of the action. If the Indemnifying Party conducts the defense of a Third Party Claim, the Indemnifying Party shall
keep the Indemnified Party apprised of all significant developments and shall not settle or
compromise any claim or action without the written consent of the Indemnified Party (which consent
shall not be unreasonably withheld or delayed) if such settlement or compromise (i) involves a
finding or admission of wrongdoing, (ii) does not include an unconditional written release by the
claimant or plaintiff of the Indemnified Party from all liability in respect of such Third Party
Claim or (iii) imposes equitable remedies or any obligation on the Indemnified Party other than
solely the payment of money damages for which the Indemnified Party will be indemnified hereunder.

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          10.4
Basket.

          Except as otherwise provided in this Agreement, neither the Seller, on the one hand, nor
Buyer, on the other hand, shall have any liability for indemnification pursuant to Section 10
unless and until the amount of Section 10 Damages for which the Indemnifying Party would otherwise
be liable with respect to any individual matter exceeds $10,000. In addition, neither the Seller,
on the one hand, nor Buyer, on the other hand, shall have any liability for indemnification
pursuant to Section 10 unless and until the amount of the total Section 10 Damages for which the
Indemnifying Party would otherwise be liable exceeds $100,000 in the aggregate, in which case the
liability for indemnification shall include such $100,000; provided, however, that such $100,000
“basket” shall not apply to (i) a breach by Seller or Company of the representations and warranties
set forth in Sections 3.1, 3.2, 3.3, 3.5, 3.12, or 3.23, and (ii) any breach of contract or
covenant or fraud by any of the parties to this Agreement and shall apply only to
misrepresentations by the parties to this Agreement. The maximum amount of indemnification claims
for which the Seller shall be liable in the aggregate for misrepresentations shall not exceed the
sum of Three Million Seven Hundred and Fifty Thousand Dollars ($3,750,000) (the “Cap”);
provided, however, that such Cap shall not apply to a breach by the Seller or Company of the
representations and warranties set forth in Sections 3.1, 3.2, 3.3, 3.5, or 3.23. Such limitation
shall not apply to any breach of contract or covenant by Seller or in cases of fraud.

          10.5 Tax Indemnification

          (a) The Seller shall indemnify and hold the Buyer and its Affiliates, the Company, and their
respective officers, directors, employees, agents, successors and permitted assigns (each an
“Indemnified Taxpayer”) harmless from and against and shall reimburse each Indemnified
Taxpayer for, any and all Taxes or other expenses (including, without limitation, reasonable
attorneys’ and accountants’ fees and expenses in connection with any action, suit or proceeding)
actually incurred, suffered or accrued at any time by any Indemnified Taxpayer arising out of or
attributable to (i) any liability for the Taxes of the Company for any period ending on or before
the Closing Date, except for Taxes of Company and Seller resulting from the Section 338(h)(10)
Election or any comparable election under state or local Tax law, as provided in Section 10.6, and
the portion of any Straddle Period ending on the Closing Date, (ii) all
liabilities of the Company as a result of the applicability of Treasury Regulations §1.1502-6
or

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similar provisions of foreign, state or local Tax law for Taxes of the any other corporation
affiliated with the Company or any Company Subsidiary on or prior to the Closing Date, or (iii) any
misrepresentation or breach of any representation, warranty or obligation set forth in Section 3.12
(collectively “Losses”). In each case, the Seller shall indemnify the Indemnified
Taxpayers only to the extent such Taxes are not accrued as a liability or taken into account in the
determination of Final Working Capital or the Working Capital Adjustment. Notwithstanding anything
to the contrary herein, the indemnification provided in this Section 10.5(a) shall not be limited
by the other provisions of Section 10.4 and 10.5, including without limitation, the Cap and the
“basket.”

          (b) Subject to the resolution of any Tax contest pursuant to Section 10.5(c), upon notice from
Buyer to the Seller that an Indemnified Taxpayer is entitled to an indemnification payment for a
Loss, the Seller shall thereupon pay to the Indemnified Taxpayer an amount that, net of any Taxes
imposed on the Indemnified Taxpayer with respect to such payment, will indemnify and hold the
Indemnified Taxpayer harmless from such Loss.

          (c) (i) If a claim shall be made by any taxing authority that, if successful, would result in
the indemnification of an Indemnified Taxpayer, the Indemnified Taxpayer shall promptly notify the
Seller in writing of such fact; provided, however, that any failure to give such
notice will not waive any rights of the Indemnified Taxpayer except to the extent the rights of the
Seller are actually materially prejudiced.

               (ii) The Seller shall have the right to defend the Indemnified Taxpayer against such claim
with counsel of their choice satisfactory to the Indemnified Taxpayer so long as (A) the Seller
notify the Indemnified Taxpayer in writing within fifteen (15) days after the Indemnified Taxpayer
has given notice of such claim that the Seller will indemnify the Indemnified Taxpayer from and
against the entirety of any Losses the Indemnified Taxpayer may suffer resulting from, arising out
of, relating to, in the nature of, or caused by the claim, (B) if requested by the Indemnified
Taxpayer, the Seller provides the Indemnified Taxpayer with evidence acceptable to the Indemnified
Taxpayer that the Seller will have the financial resources to defend against the claim and fulfill
their indemnification obligations hereunder, (C) if requested by the Indemnified Taxpayer, the
Seller provides to the Indemnified Taxpayer an opinion, in form and substance satisfactory to the
Indemnified Taxpayer, of counsel satisfactory
to the Indemnified Taxpayer, that there exists a reasonable basis for the Company to prevail
in

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that contest, (D) if the Indemnified Taxpayer is requested to pay the Tax claimed and sue for a
refund, the Seller shall have advanced to the Indemnified Taxpayer, on an interest free basis, the
full amount the Indemnified Taxpayer is required to pay, and (E) the Seller shall conduct the
defense of the claim actively and diligently.

               (iii) Subject to the provisions of paragraph (ii) above, the Seller shall be entitled to
prosecute such contest to a determination in a court of initial jurisdiction, and if the Seller
shall reasonably request, to a determination in an appellate court provided that, if requested by
the Indemnified Taxpayer, the Seller shall provide to the Indemnified Taxpayer an opinion, in form
and substance satisfactory to the Indemnified Taxpayer, of counsel satisfactory to the Indemnified
Taxpayer, that there exists a reasonable basis for the Company to prevail on that appeal.

               (iv) Without the consent of the Indemnified Taxpayer, which consent shall not be unreasonably
withheld or delayed, the Seller shall not be entitled to settle or to contest any claim relating to
Taxes if the settlement of, or an adverse judgment with respect to, the claim would be likely, in
the good faith judgment of the Indemnified Taxpayer, to cause the liability for any Tax of the
Indemnified Taxpayer or of any Affiliate of the Indemnified Taxpayer for any taxable period ending
after the Closing Date to increase (including, without limitation, by making any election or taking
any action having the effect of making any election, by deferring the inclusion of any amount in
income or by accelerating the deduction of any amount or the claiming of any credit) or to take a
position that, if applied to any taxable period ending after the Closing Date, would be adverse to
the interest of the Indemnified Taxpayer or any Affiliate of the Indemnified Taxpayer.

               (v) If, after actual receipt by the Indemnified Taxpayer of an amount advanced by the Seller
pursuant to paragraph (ii)(D) above, the extent of the liability of the Indemnified Taxpayer with
respect to the indemnified matter shall be established by the judgment or decree of a court that
has become final or a binding settlement with an administrative agency having jurisdiction thereof
that has become final, the Indemnified Taxpayer shall promptly pay to the Seller any refund
received by or credited to the Indemnified Taxpayer with respect to the indemnified matter
(together with any interest paid or credited thereon by the taxing authority and any recovery of
legal fees from such taxing authority).

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               (vi) If after notice by the Indemnified Taxpayer to the Seller under Section 10.5 (c)(i), any
of the conditions in Section 10.5(c)(ii) above are or become unsatisfied, (A) the Indemnified
Taxpayer may defend against, and consent to the entry of any judgment or enter into any settlement
with respect to, the claim in any manner it may deem appropriate (and the Indemnified Taxpayer need
not consult with, or obtain any consent from, the Seller in connection therewith), (B) the Seller
will reimburse the Indemnified Taxpayer promptly and periodically for the costs of defending
against the claim (including, without limitation, attorneys’, accountants’ and experts’ fees and
disbursements) and (C) the Seller will remain responsible for any Losses the Indemnified Taxpayer
may suffer to the fullest extent provided in this Section 10.5.

          (d) Anything to the contrary in this Agreement notwithstanding, the indemnification
obligations of the Seller under this Section 10.5 shall survive the Closing until the end of the
applicable statutes of limitations. With respect to any indemnification obligation for any Tax for
which a taxing authority asserts a claim within ninety (90) days before the end of the applicable
statute of limitations, an Indemnified Taxpayer shall be treated as having provided timely notice
to the Seller by providing written notice to the Seller on or before the thirtieth (30th) day after
the Indemnified Taxpayer’s receipt of a written assertion of the claim by the taxing authority.

          (e) All transfer, documentary, sales, use, stamp, registration and other such Taxes and fees
(including any penalties and interest) incurred in connection with this Agreement shall be paid by
the Seller when due, and the Seller will, at his own expense, file all necessary Tax Returns and
other documentation with respect to all such transfer, documentary, sales, use, stamp, registration
and other Taxes and fees, and, if required by applicable law, Buyer will, and will cause its
Affiliates to, join in the execution of any such Tax Returns and other documentation.

          10.6 Section 338(h)(10) Election and Tax Indemnification.

          (a) With respect to the sale of the Shares, at the option of the Buyer, the Seller and the
Buyer shall jointly make a Section 338(h)(10) Election in accordance with applicable laws and under
any comparable provision of state, local or foreign law for which a separate election is
permissible and as set forth herein. The Buyer and the Seller shall take all necessary
steps to properly make a Section 338(h)(10) Election in accordance with applicable laws and

54

 

under any comparable provision of state, local or foreign law for which a separate election is
permissible. The Buyer and the Seller agree to cooperate in good faith with each other in the
preparation and timely filing of any Tax Returns required to be filed in connection with the making
of such an election, including the exchange of information and the joint preparation and filing of
Form 8023 and related schedules. The Buyer and the Seller agree to report the transfers under this
Agreement consistent with such elections and shall take no position contrary thereto unless
required to do so by applicable tax law pursuant to a determination as defined in Section 1313(a)
of the Code.

          (b) The Buyer shall be responsible and shall hold the Seller harmless for the preparation and
filing of all Section 338 Forms in accordance with applicable tax laws and the terms of this
Agreement and shall deliver such Section 338 Forms to the Seller at least 30 days prior to the date
such Section 338 Forms are required to be filed. The Seller shall execute and deliver to Buyer
such documents or forms (including executed Section 338 Forms) as are requested and are required by
any laws in order to properly complete the Section 338 Forms at least 20 days prior to the date
such Section 338 Forms are required to be filed. The Seller shall provide the Buyer with such
information as the Buyer reasonably requests in order to prepare the Section 338 Forms by the later
of 30 days after the Buyer’s request for such information or 30 days prior to the date on which
Buyer is required to deliver such forms to the Seller.

          (c) The Cash Purchase Price, liabilities of the Company and other relevant items shall be
allocated in accordance with Schedule 10.6(c) hereto. None of the Seller, the Company or the Buyer
shall take any position on any Tax Return or with any taxing authority that is inconsistent with
Schedule 10.6(c), provided that the Seller, the Company and the Buyer may take a tax position
consistent with any examination adjustments made by the Internal Revenue Service or applicable
state or local taxing authorities.

          (d) “Section 338 Forms” means all returns, documents, statements, and other forms that
are required to be submitted to any federal, state, county or other local Tax authority in
connection with a Section 338(h)(10) Election. Section 338 Forms shall include any documents that
are required pursuant to Treasury Regulations Section 1.338-1 or Treasury Regulations Section
1.338(h)(10)-1 or any successor provisions, including any required
“statement of Section 338 election,” IRS Form 8023 (together with any schedules or attachments
thereto), and IRS Form 8883 (together with any schedules or attachments thereto).

55

 

          (e) Notwithstanding any other provision of this Agreement to the contrary, the Seller agrees
that any income and gain recognized as a result of, and in accordance with, the making of the
Section 338(h)(10) Election, will be included in the Seller’s federal, state, and if applicable
local, income tax returns and any resulting tax liability will be paid by the Seller. The Seller
shall pay any Tax attributable to the making of the Section 338(h)(10) Election, except for any Tax
imposed under Section 1374 of the Code, including, without limitation any state, local Tax imposed
on the Company’s gain, whether or not the relevant jurisdiction provides for an election similar in
nature to the Section 338(h)(10) Election. The Seller will, at his own expense, file all necessary
Tax Returns and other documentation with respect to all such Taxes, and shall indemnify the Buyer
or the Company against any adverse consequences, including, without limitation, all Tax
liabilities, penalties and fees arising out of any failure to pay any such Taxes.

          (f) “Section 338(h)(10) Election” means an election described in Section 338(h)(10) of
the Code with respect to the Buyer’s acquisition of Shares pursuant to this Agreement. Section
338(h)(10) Election shall include any corresponding election under state or local law pursuant to
which a separate election is permissible with respect to the Buyer’s acquisition of Shares pursuant
to this Agreement.

          (g) At the Closing, the Seller and any other Person who may receive payments from the Buyer
pursuant to this Agreement will provide the Buyer or the Company with any Forms W-9 or other
certificates or forms the Buyer may reasonably request in order to allow the Buyer or the Company
to meet their withholding obligations under any applicable Tax law. The Buyer will have no
obligation after the Closing to pay any amount under this Agreement to the Seller if they have not
provided Buyer with the information necessary to allow the Buyer to comply with the Tax information
reporting requirements of the federal Tax law or any other applicable Tax law.

          (h) Buyer shall indemnify the Seller for any additional Tax incurred by the Seller as a result
of the Section 338(h)(10) Election. For purposes of this Section 10.6(h), additional Tax shall
mean an amount equal to the excess of (i) the net after Tax proceeds, including the value of the
Parent’s Stock, that the Seller would receive on a taxable sale of 100% of the stock of the Company
without a Section 338(h)(10) Election over the net after Tax
proceeds that the Seller actually receives on the sale of 100% of the stock of the Company
with the Section 338(h)(10) Election. Notice of any claim hereunder shall follow the procedure and

56

 

terms of Section 10.3, and any indemnification hereunder shall not be subject to or limited by the
Cap or the basket set forth in Section 10.4.

     11. Termination.

          This Agreement shall be terminated and the transactions contemplated by this Agreement
abandoned at any time prior to the Closing:

          11.1 By mutual written consent of the Buyer and the Seller.

          11.2 By either the Buyer or the Seller, upon written notice to the other, if without fault of
such terminating party, the Closing has not taken place by the close of business ninety (90) days
after the execution of this Agreement by all parties, unless the Buyer and the Seller agree, in
writing, to extend such date.

          11.3 By Buyer upon written notice to the Seller, if the Seller and/or the Company have
violated or breached any representation, warranty or covenant contained in this Agreement or any
agreement contemplated by this Agreement; provided that the Buyer shall have given the Seller
thirty (30) days’ advance written notice setting forth the basis on which the Buyer is exercising
its right to terminate and such violation or breach (to the extent such violation or breach can be
cured) is not cured within such thirty (30) days.

          11.4 By the Seller upon written notice to the Buyer, if the Buyer has violated or breached any
representation, warranty or covenant contained in this Agreement or any agreement contemplated by
this Agreement; provided that the Seller shall have given the Buyer thirty (30) days’ advance
written notice setting forth the basis on which the Seller is exercising his right to terminate and
such violation or breach (to the extent such violation or breach can be cured) is not cured within
such thirty (30) days.

          Termination by the Buyer or the Seller pursuant to Sections 11.3 or 11.4, respectively, shall
not constitute a waiver of the breach affording such right of termination or of the right to seek
damages for such breach.

     12. Miscellaneous.

          12.1 Notices.

          All notices, demands or requests provided for or permitted to be given pursuant to this
Agreement must be in writing and shall be delivered or sent, with the copies indicated, by personal
delivery, electronic mail, telecopy (with confirmation and additional copy sent by overnight
delivery service) or overnight delivery service (by a reputable international carrier) to

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the parties as follows (or at such other address as a party may specify by notice given pursuant to
this Section):

	 	 	 	 	 
	 

	 	To Seller and/or

the Company:
	 	Group Transportation Services, Inc.
	 

	 	 	 	5876 Darrow Road
	 

	 	 	 	Hudson, Ohio 44236
	 

	 	 	 	Attn: Michael Valentine
	 

	 	 	 	Email: MValentine@OneStopShipping.com
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Krugliak, Wilkins, Griffiths
	 

	 	 	 	& Dougherty Co., L.P.A.
	 

	 	 	 	4775 Munson St. N.W.
	 

	 	 	 	P.O. Box 36963
	 

	 	 	 	Canton, Ohio 44735-6963
	 

	 	 	 	Attn: Randall C. Hunt,
	 

	 	 	 	Fax: (330) 497-4020
	 

	 	 	 	Email: rchunt@kwgd.com
	 
	 	 	 	 
	 

	 	To Buyer:
	 	c/o Thayer/Hidden Creek
	 

	 	 	 	4508 IDS Center
	 

	 	 	 	Minneapolis, Minnesota 55402
	 

	 	 	 	Attn: Scott Rued
	 

	 	 	 	Managing Partner
	 

	 	 	 	Fax: (612) 332-2012
	 

	 	 	 	Email: srued@thayerhiddencreek.com
	 
	 	 	 	 
	 

	 	With a copy to:
	 	Greenberg Traurig, LLP
	 

	 	 	 	2375 Camelback Road
	 

	 	 	 	Suite 700
	 

	 	 	 	Phoenix, AZ 85016
	 

	 	 	 	Attn: Michael Kaplan
	 

	 	 	 	Fax: 602-445-8615
	 

	 	 	 	Email: kaplanm@gtlaw.com

All notices shall be deemed given and received one business day after their delivery to the
addresses for the respective party(ies), with the copies indicated, as provided in this Section
12.1.

          12.2 Entire Agreement.

          This Agreement, the documents which are Exhibits and Schedules to this Agreement and any other
contemporaneous written agreements entered into by the parties contain the sole and entire binding
agreement among and representations made by the parties to each other and supersede any and all
other prior written or oral agreements and representations

58

 

among them; provided, however, the
Confidentiality Agreement dated September 19, 2007 (the “Confidentiality Agreement”) shall
remain in full force and effect until the Closing. The Letter Agreement is terminated as of the
date of this Agreement and is of no further force or effect.

          12.3 Amendment.

          No amendment or modification of this Agreement shall be valid unless, in writing, and duly
executed by the parties affected by the amendment or modification; provided, however, if the
amendment affects the Seller generally, such amendment shall be valid and binding on the Seller if
it is executed by the Seller.

          12.4 Binding Effect.

          This Agreement shall be binding upon and inure to the benefit of the parties and their
respective representatives, heirs, successors and permitted assigns.

          12.5 Waiver.

          Waiver by any party of any breach of any provision of this Agreement shall not be considered
as or constitute a continuing waiver or a waiver of any other breach of the same or any other
provision of this Agreement.

          12.6 Captions.

          The captions contained in this Agreement are inserted only as a matter of convenience or
reference and in no way define, limit, extend or describe the scope of this Agreement or the intent
of any of its provisions.

          12.7 Construction.

          In the construction of this Agreement, whether or not so expressed, words used in the singular
or in the plural, respectively, include both the plural and the singular and the masculine,
feminine and neuter genders include all other genders. Since all parties have engaged in the
drafting of this Agreement, no presumption of construction against any party shall apply.

          12.8 Section.

          All references contained in this Agreement to Sections, Schedules and Exhibits shall be deemed
to be references to Sections of and Schedules and Exhibits attached to this Agreement, except to
the extent that any such reference specifically refers to another document. All references to
Sections shall be deemed to also refer to all subsections of such Sections, if any. The definitions
of terms defined in this Agreement shall apply to the Schedules.

          12.9 Severability.

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          In the event that any portion of this Agreement is illegal or unenforceable, it shall affect
no other provisions of this Agreement, and the remainder of this Agreement shall be valid and
enforceable in accordance with its terms.

          12.10 Absence of Third-Party Beneficiaries.

          Nothing in this Agreement, express or implied, is intended to (a) confer upon any Person other
than the parties to this Agreement, and as set forth in Sections 12.4 and 12.12, any rights or
remedies under or by reason of this Agreement as a third-party beneficiary or otherwise; or (b)
authorize anyone not a party to this Agreement to maintain an action or institute an arbitration
proceeding pursuant to or based upon this Agreement.

          12.11 Business Day.

          As used in this Agreement, the term “business day” means any day other than a Saturday, Sunday
or legal or bank holiday in the City of Hudson, Ohio (the “City”). If any time period set
forth in this Agreement expires on other than a business day in the City, such period shall be
extended to and through the next succeeding business day in the City.

          12.12 Assignment.

          Neither this Agreement nor any rights under this Agreement may be assigned by any party
without the written consent of all other parties; provided, however, that nothing
herein shall prohibit the assignment of Buyer’s rights and obligations to any Affiliate or direct
or indirect subsidiary or prohibit the assignment of Buyer’s rights (but not obligations) to any
lender.

          12.13 Other Documents.

          The parties shall take all such actions and execute all such documents which may be necessary
to carry out the purposes of this Agreement, whether or not specifically provided for in this
Agreement.

          12.14 Governing Law.

          This Agreement and the interpretation of its terms shall be governed by the laws of the State
of Delaware, without application of conflicts of law principles.

          12.15 Attorneys Fees.

          Seller, the Buyer and the Company shall pay their respective attorneys’ fees and expenses for
the negotiation and preparation of this Agreement, the Exhibits and Schedules and the other
agreements contemplated by this Agreement.

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          12.16 Public Disclosure.

          No party to this Agreement shall make any public disclosure or publicity release pertaining to
the existence of the subject matter contained in this Agreement without notifying and consulting
with the other parties and upon approval of a joint press release, as approved by the President of
GTS, and the Managing Partner of the Buyer; provided, however, that notwithstanding the foregoing,
each party shall be permitted, after notice to the other parties, to make such disclosures to the
public or to governmental agencies as its counsel shall deem necessary to maintain compliance with,
and to prevent violation of, applicable laws, federal, state and local, domestic and foreign.

          12.17 Counterparts.

          This Agreement may be executed and delivered in two or more counterparts, each of which shall
be deemed to be an original and all of which, taken together, shall be deemed to be one agreement.

          12.18 Affiliate. The term “Affiliate” shall mean, with respect to any Person, any other Person
directly or indirectly controlling, controlled by or under common control with such Person. For
purposes of this definition, the term “control” (including the terms “controlling,”
“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 the ownership of voting securities, by contract or otherwise, and such
“control” will be presumed if the first Person owns 5% or more of the voting capital stock
or other ownership interests, directly or indirectly, of such other Person.

          12.19 Code. The term “Code” shall mean the Internal Revenue Code of 1986, as amended.

          12.20 Confidential Information. The term “Confidential Information” shall mean confidential data and confidential
information (whether or not specifically labeled or identified as “confidential”), in any form or
medium, relating to the business, Products or services of the Company (which does not rise to the
status of a Trade Secret under applicable law) which is or has been disclosed to the Seller or of
which the Seller became aware as a consequence of or through his employment with or ownership of
the Company and which has value to the Company and is not known to the competitors of the Company.
Confidential Information includes, but is not limited to, the following: (i) internal business
information

61

 

(including information relating to strategic and staffing plans and practices,
business, training, marketing, promotional and sales plans and practices, cost, rate and pricing
structures and accounting and business methods), (ii) identities of, individual requirements of,
specific contractual arrangements with, and information about, the suppliers, distributors,
customers, independent contractors or other business relations of the Company, (iii) trade secrets,
know-how, compilations of data and analyses, techniques, systems, research, records, reports,
manuals, documentation, data and data bases relating thereto and (iv) inventions, innovations,
improvements, developments, methods, designs, analyses, drawings, reports and all similar or
related information (whether or not patentable). Notwithstanding the
foregoing, Confidential Information shall not include any data or information that (i) has
been voluntarily disclosed to the general public by the Company or its Affiliates, (ii) has been
independently developed and disclosed to the general public by others, or (iii) otherwise enters
the public domain through lawful means.

          12.21 Funded Indebtedness. “Funded Indebtedness” shall mean the aggregate amount (including the current
portions thereof) of all (i) indebtedness for money borrowed from others, as well as the Company’s
capital lease obligations, purchase money indebtedness, letters of credit, notes payable and all
amounts payable to the Seller or any employee of the Company (including bonuses, dividend
distributions and other payables and related Taxes payable by the Company), and (ii) interest
expense accrued but unpaid, and all prepayment premiums, on or relating to any of such
indebtedness.

          12.22 Governmental Authority. The term “Governmental Authority” shall mean any nation or country (including but
not limited to the United States) and any commonwealth, territory or possession thereof and any
political subdivision of any of the foregoing, including but not limited to courts, departments,
commissions, boards, bureaus, agencies, ministries or other instrumentalities

          12.23 Hazardous Material. The term “Hazardous Material” shall mean all or any of the following: (a)
substances that are defined or listed in, or otherwise classified pursuant to, any applicable laws
or regulations as “hazardous substances,” “hazardous materials,” “hazardous wastes,” “toxic
substances” or any other formulation intended to define, list or classify substances by reason of
deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive
toxicity or “EP toxicity”; (b) oil, petroleum or petroleum derived

62

 

substances, natural gas, natural
gas liquids or synthetic gas and drilling fluids, produced waters and other wastes associated with
the exploration, development or production of crude oil, natural gas or geothermal resources; (c)
any flammable substances or explosives or any radioactive materials; and (d) asbestos in any form
or electrical equipment which contains any oil or dielectric fluid containing levels of
polychlorinated biphenyls in excess of fifty parts per million

          12.24 Legal Requirements. The term “Legal Requirements,” when described as being applicable to any Person,
shall mean any and all laws (statutory, judicial or otherwise), ordinances, regulations, judgments,
orders, directives, injunctions, writs, decrees or awards of, and any Contracts with, any
Governmental Authority, in each case as and to the extent applicable to such person or such
person’s business, operations or properties.

          12.25 Material Adverse Effect. The term “Material Adverse Effect” shall mean a material adverse effect on the
business, results of operations, financial condition, prospects, assets, liabilities, cash flows or
working capital of the Company.

          12.26 Product. The term “Product” shall mean each product, repair process or service distributed
or sold by the Company and any other products or services with respect to which the Company has any
liability, proprietary rights or beneficial interest.

          12.27 Treasury Regulations. The term “Treasury Regulations” shall mean any and all regulations promulgated by
the Department of the Treasury pursuant to the Code.

          12.28 Straddle Period. The term “Straddle Period” shall mean any Tax period which commences prior to the
Closing Date and ends after the Closing Date.

          12.29 Tax. The term “Tax” shall mean any Federal, state, local or foreign income, gross
receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall
profits, environmental (including taxes under Section 59A of the Code), vehicle, customs duties,
capital stock, franchise, profits, withholding, social security (or similar), unemployment,
disability, real property, 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.

          12.30 Tax Return. The term “Tax Return” shall mean any return, declaration, report, claim for refund
or information return or statement relating to Taxes, including any schedule or attachment thereto
and including any amendment thereof.

63

 

          12.31 Trade Secrets. The term “Trade Secrets” shall mean information of the Company including, but not
limited to, technical or nontechnical data, formulas, patterns, compilations, programs, financial
data, financial plans, Product or service plans or lists of actual or potential customers or
suppliers which (i) derives economic value, actual or potential, from not being generally known to,
and not being readily ascertainable by proper means by, other persons who can obtain economic value
from its disclosure or use, and (ii) is the subject of efforts that are commercially reasonable
under the circumstances to maintain its secrecy.

[Remainder of Page Intentionally Left Blank]

64

 

     The parties have executed this Agreement as of the date set forth above.

	 	 	 	 	 
	 	 	 
	Seller: 	                 /s/ Michael P. Valentine
 	 
	 	Michael P. Valentine 	 
	 	 	 
	 
	Company:	GROUP TRANSPORTATION SERVICES, INC.,

a Delaware corporation

 	 
	 	By:  	              /s/ Michael P. Valentine
 	 
	 	 	Name:  	Michael P. Valentine 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	GTS DIRECT, LLC, an Ohio limited liability company

 	 
	 	By:  	              /s/ Michael P. Valentine
 	 
	 	 	Name:  	Michael P. Valentine 	 
	 	 	Title:  	President 	 
	 
	Buyer:	GTS ACQUISITION SUB, INC.

a Delaware corporation

 	 
	 	By:  	              /s/ Scott Rued
 	 
	 	 	Name:  	Scott Rued 	 
	 	 	Title:  	Chairman 	 
	 

65

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