Document:

Form of Computer Services Agreement

 Exhibit 10.7 
  
  
 COMPUTER SERVICES AGREEMENT 

 
  
 THIS COMPUTER SERVICES AGREEMENT (this “Agreement”) is made and entered into as of the              day of
                        , 2003 (the “Effective Date”), by and between UNION PACIFIC CORPORATION, a Utah
corporation (“UPC”), and OVERNITE CORPORATION, a Virginia corporation (“Overnite”). 
  
 WHEREAS, UPC intends to sell its entire interest in Overnite Holding, Inc., a Delaware corporation (“OHI”), in connection with an
underwritten initial public offering (the closing of which is hereafter referred to as the “Offering”); 
  
 WHEREAS, immediately prior to the Offering, Overnite will acquire from UPC all of the outstanding common stock of OHI in exchange for, inter
alia, all of the outstanding common stock of Overnite (the  “Divestiture Transaction”), such that OHI will become a wholly-owned subsidiary of Overnite and, immediately following the Offering, Overnite will be a
publicly-owned company; 
  
 WHEREAS, Overnite
Transportation Company, a Virginia corporation (“OTC”), and Motor Cargo Industries, Inc., a Utah corporation (“Motor Cargo”), each a wholly-owned, indirect subsidiary of OHI, and each become a wholly-owned, indirect subsidiary of
Overnite immediately following the Divestiture Transaction; 
  
 WHEREAS, UPC, through its wholly-owned subsidiaries Transentric, Inc. (“Transentric”) and Union Pacific Railroad Company (“UPRR”), has provided to its subsidiaries, including OTC, certain data center services and
other miscellaneous services, including the services described herein; and 
  
 WHEREAS, UPC and Overnite desire that UPC continue to provide such services following the Divestiture Transaction and the Offering pursuant to the terms and conditions of this Agreement; 
  
 NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties to this Agreement, intending to be bound hereby, agree as follows: 
  
 1. Data Center Services. UPC, through UPRR, has
provided and currently provides to OTC certain data center processing services in support of certain business applications of OTC, which services are provided from UPRR’s St. Louis, Missouri data center (the “UP Data Center”),
including the following services (collectively, the “Data Center Services”): usage and non-usage based services for the current mainframe central processing unit and any successors, applications services, decision support services, and
associated support services, including without limitation direct access storage devices, print, tape mounts, and overhead. 
  
 2. Agilink Services. Transentric LLC, a subsidiary of UPC, has provided and currently provides OTC with certain messaging services,
autofax services, mapping services, and Kleinschmidt bill services, pursuant to that certain letter agreement, dated February 20, 2003 (the “Agilink Letter”), between Transentric and OTC (collectively, the “Agilink Services”).

  
 3. Office Space. UPC has provided and
currently provides OTC with office space in its facility located at 7930 Clayton Road, St. Louis, Missouri (the “Clayton Facility”), for up to six (6) OTC employees, along with necessary equipment and utilities, including without
limitation, desks, office supplies, electricity, phone lines, data lines, use of office equipment (such as fax and copy machines), and trash removal and janitorial services (hereinafter referred to as “Office Space and Related Equipment and
Services”). 
  
 4. Continued Provision of
Services. UPC shall provide or cause to be provided the Data Center Services, the Agilink Services, and the Office Space and Related Equipment and Services (collectively, the “Services”) to Overnite and its subsidiaries pursuant to the
terms and conditions set forth herein. UPC shall provide Services of at least the same nature and quality as the similar services that it has provided to OTC during the year prior to the Effective Date of this Agreement, and shall perform the
Services with at least the same degree of care, skill, timeliness and prudence that it exercises with respect to its own operations. The provision of Agilink Services will be governed solely by the Agilink Letter. The availability of the systems
used in providing the Data Center Services and UPC’s response times related to provision of the Data Center Services shall meet or exceed the standards to be agreed to between UPC and Overnite. 
  

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 UPC agrees to cooperate in good faith with Overnite to plan and evaluate upgrades related to the Data
Center Services and the relocation of OTC’s data center to Richmond, Virginia. In the event that Overnite requires any additional services not contemplated hereby, Overnite shall deliver a written request for such services, and UPC will
determine in its sole judgment whether it will provide such additional requested services. The rate for such additional services shall be determined in accordance with Section 6 of this Agreement. 
  
 5. Term. 
  
 A. UPC shall provide the Services from the Effective Date
through December 31, 2004. Notwithstanding the foregoing, Overnite shall have the option to terminate this Agreement as to one or more of the particular Services by providing UPC with sixty (60) days’ written notice thereof. UPC agrees to
assist Overnite with the transitioning of Services in accordance with the terms and conditions of this Agreement. Overnite shall have the option to extend this Agreement and the provision of some or all of the Services through December 31, 2005 by
providing UPC with written notice of such intent on or before June 30, 2004. In the event that Overnite does not exercise its option to extend, then this Agreement shall terminate on December 31, 2004. In the event that Overnite does exercise its
option to extend, then this Agreement shall terminate on December 31, 2005. 
  
 B. Notwithstanding the foregoing, the following terms apply to specific Services: 
  
 (1) UPC agrees to provide the Office Space and Related Equipment and Services until the earlier to occur of (A) notice of termination of
these services by OTC or (B) one month prior to the date on which UPC moves its mainframe data center operations from the UP Data Center. 
  
 (2) UPC will provide the Data Center Services until such time as Overnite completes its Richmond data center, which will not be later
than one month prior to the date on which UPC moves its mainframe data center operations from the UP Data Center. UPC will provide Overnite notice of the estimated actual moving date, which in no event shall be provided later than 30 days prior to
such date. Notwithstanding the foregoing, UPC will provide Teradata services (the “Teradata Services”) to Overnite until December 31, 2005 unless Overnite sooner terminates such services by providing written notice to UPC. 
  
 C. Overnite hereby covenants and agrees that its new data
center in Richmond will be completed on or before the date that is one month prior to the date on which UPC moves its mainframe data center operations from the UP Data Center. UPC will provide Overnite notice of the estimated actual moving date,
which in no event shall be provided later than 30 days prior to such moving date. 
  
 D. This Agreement shall become terminable by UPC immediately upon the acquisition by any third party (including any group of investors or
acquirors acting in concert with the intent to acquire, or acquire control of, Overnite) of all or substantially all of the assets of Overnite or a majority of the issued and outstanding common stock of Overnite or that amount of any other voting
security or securities of Overnite that would constitute a majority of the voting securities of Overnite or other similar disposition or transaction. 
  
 6. Fees. Rates for the Services provided during 2003 are set forth on Appendices A and B to this Agreement. All items on Appendices
A and B that are invoiced on a pass-through basis will be invoiced on the same basis for any such services that are provided pursuant to this Agreement after 2003. Additionally, all items on Appendices A & B that are invoiced on a usage basis
will be invoiced at the rates applicable to such items for 2003 for any such Services that are provided pursuant to this Agreement after 2003. Rates for any additional services to be provided by UPC to Overnite pursuant to Section 4 of this
Agreement shall be determined by mutual agreement of the parties hereto; provided, however, that in no event will the rates for any such additional services be less than UPC’s estimated actual cost of providing such Services or
additional services. 
  
 7. Billing and
Payment. Each month during the term of this Agreement and in the first month after termination of this Agreement (or any extension thereof), UPC shall submit to Overnite an invoice containing the estimated charges for the Services for the then
current month and containing a detailed statement, for the prior month, of all of the charges for the Services. Overnite shall remit payment in full for the estimated charges, reflecting any adjustments for prior months’ charges, by wire
transfer or immediately available funds to an account designated by UPC, on or prior to the later of: (a) five (5) business days after receipt of such invoices, or (b) the end of the then current 
  

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 month. Overnite shall notify UPC of any good-faith dispute with respect to an invoiced amount and the
basis therefor. In the event of a dispute as to the invoiced amount, Overnite shall pay all undisputed amounts but shall be entitled to withhold amounts subject to any such dispute. In the event of such a dispute, the parties agree to provide each
other with records and information relating to such dispute and, without limiting their rights and remedies, to negotiate in good faith to attempt to resolve such dispute. 
  
 Any late payment shall be subject to any costs of collection (including reasonable legal fees) and shall bear interest at
the rate of 0.5% per month or a fraction thereof until paid. UPC shall not commence suit on collection of late payment prior to providing seven (7) days notice of its intent to commence suit to Overnite. 
  
 8. Liability and Indemnification. Except as provided
below, UPC and all of its directors, officers, agents and employees shall have no liability, whether direct or indirect, in contract, tort or otherwise, under this Agreement for any damage, loss or other harm (including, without limitation,
out-of-pocket expenses and fees and disbursements of counsel) of any type suffered by Overnite or any third party in connection with the performance or non-performance of this Agreement or the Services contemplated hereby or the actions or
in-actions of any of the indemnified parties in connection with the foregoing, except for any such damage, loss or other harm directly caused by or directly resulting from the negligence or willful misconduct of UPC in connection with the
performance or non-performance of this Agreement or the Services contemplated hereby or the actions or inaction of any of the indemnified parties in connection with the foregoing. In the event of a third party claim, Overnite, including its
successors and assigns, for itself and on behalf of all of its subsidiaries and affiliates, including their respective successors and assigns, shall indemnify, defend and hold harmless UPC and all of its directors, officers, agents and employees
from and against any and all such damages, losses and other harms (including, without limitation, out-of-pocket expenses and fees and disbursements of counsel) caused by or arising out of the performance or non-performance of this Agreement or the
Services contemplated hereby or the actions or in-actions of any of the indemnified parties in connection with the foregoing other than any such damage, loss or other harm directly caused by or directly resulting from the negligence or willful
misconduct of UPC in connection with the performance or non-performance of this Agreement or the Services contemplated hereby or the actions or in-actions of any of the indemnified parties in connection with the foregoing. The total liability of UPC
under this Section 8 will not under any circumstances exceed the aggregate amount of fees paid to UPC by Overnite. Notwithstanding any other provision of this Agreement, UPC shall have no liability for (i) any lost profits or any incidental,
consequential, special, indirect or similar damages of any kind or nature whatsoever of Overnite or any third party (including the fees and expenses of counsel), (ii) any damages, claims or other losses resulting from the acts or omissions of any
third party (other than UPC or any subsidiary of UPC) that provides Services hereunder or (iii) any damages, claims or other losses resulting from the violation by Overnite of any licenses or sub-license relating to any software or computer programs
made available to Overnite by UPC. This Section 8 shall survive the termination of this Agreement until such time as the obligations of the parties (including their respective successors and assigns) set forth in this Section 8 have been fully
satisfied. 
  
 9. Licenses and Permits.
Overnite, at Overnite’s sole expense, shall be responsible for obtaining all necessary software licenses, permits and other similar arrangements required for the provision by UPC of the Services (and any additional services) due to the Offering
and Acquisition and the resulting disaffiliation of Overnite from UPC and its subsidiaries and affiliates. Overnite hereby agrees to indemnify, defend and hold harmless UPC, its subsidiaries and affiliates and their respective officers, directors
and employees from and against any harm, claims, losses or damages resulting from the failure by Overnite to obtain any licenses, permits or other similar arrangements required for the provision by UPC of the Services (and any additional services),
whether resulting from any claim, including one or more claims based on contract, warranty, tort or equity. Overnite understands and agrees that UPC (and its subsidiaries) shall be entitled to injunctive or similar relief in the event that Overnite
(or its subsidiaries) violates this Section 9 in addition to, and cumulative with, any other remedies that may be available to UPC (and its subsidiaries). UPC will cooperate in good faith to assist Overnite with securing all necessary licenses,
permits and similar arrangements. 
  
 10.
Confidentiality. For purposes hereof, “Confidential Information” means any information, in any form or medium, which relates to any component of a party’s business and which is not a matter of public record or generally known
to the public, including, without limitation, information relating to inventions; patent, trademark, and copyright applications; improvements; know-how; specifications; drawings; cost and pricing data; process flow diagrams; customer and supplier
lists; bills; ideas; concepts; financial information; plans, practices, and procedures; agreements, documents, or instruments involving the party; and any information or materials deemed or designated as confidential or proprietary by the party.
Each party agrees that during and after the term of this Agreement (or any extension thereof), 
  

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 unless specifically authorized by the other party in a prior writing, it shall not, directly or indirectly, disclose the
other party’s Confidential Information to any person or entity, or use the other party’s Confidential Information for its benefit. In the event that a party is requested or required to disclose the other party’s Confidential
Information in connection with any legal proceeding, interrogatory, subpoena, civil investigative demand, or similar process, that party will promptly notify the other party of the request or requirement so that the other party may seek an
appropriate protective order. If, in the absence of a protective order, a party, on the advice of counsel, is compelled by any tribunal to disclose the other party’s Confidential Information, that party shall use its best efforts to obtain an
order or other assurance that confidential treatment will be accorded to such Confidential Information required to be disclosed. Promptly upon request, or upon termination of this Agreement for any reason, each party shall return to the other party
or destroy, as requested by the other party, any materials in its possession or control that contain, embody, or reflect the other party’s Confidential Information. 
  
 11.    Assignment. Neither party shall assign or transfer any of its rights or obligations under
this Agreement except with the prior written consent of the other party, which consent may be withheld by such other party in its sole discretion. This Agreement shall be binding upon and shall inure to the benefit of the parties and their
successors and permitted assigns. 
  
 12.    Miscellaneous. 
  
 A.
Notices. All notices and other communications hereunder shall be in writing and shall be delivered in person, by United States mail, certified, return receipt requested, postage prepaid, by express mail by a nationally recognized carrier, or
by facsimile transmission (provided, if sent by facsimile transmission, such notice shall also be sent by one of the other methods provided under this Section 12 within 24 hours after initially sent by facsimile transmission) to the following:

  

	   (i)
	 	 If to UPC:
  

Union Pacific Corporation
 1416
Dodge Street
 Omaha, Nebraska 68179-0001
 Fax No.: 
 ATTN:   Senior Vice President,
Information
Technologies

  

	 (ii)
	 	 If to Overnite:
  
 Overnite Corporation
 1000 Semmes Avenue
 Richmond, Virginia 23224-2246
 Fax No.: 
 ATTN:
  Vice President of
Information Technologies

  
  
 or to such other addresses as either party may designate from time to time in writing. The date of any notice so sent will be deemed to be the date of receipt (or
refusal), in the case of United States mail, the following business day, in the case of overnight express mail, and, in the case of facsimile transmission, upon receipt if received during the recipient’s normal business hours, or at the
beginning of the recipient’s next business day if not received during the recipient’s normal business hours. 
  
 B. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York, without giving effect to
the principles of conflicts of laws thereof. 
  
 C.
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed an original but all of which shall together constitute but one and the same instrument. 
  
 D. Headings. The headings and captions set forth in this Agreement are
for convenience of 
  

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 reference only and shall not affect the construction or interpretation hereof. 
  
 E. Severability. The provisions of this Agreement are severable.
Should any provision of this Agreement be void, voidable, or unenforceable, this shall not affect or invalidate any other provisions of this Agreement, which shall continue to govern the relative rights and obligations of the parties as though such
void, voidable, or unenforceable provision were not a part hereof. 
  
 F. Entire Agreement; Modification; Waiver. This Agreement constitutes the entire agreement of the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, whether oral or written, with
respect thereto. This Agreement may not be modified or amended except by a subsequent written instrument duly executed by both parties. No failure or delay by any party in exercising any right, power, or privilege hereunder shall operate as a waiver
thereof. Nor shall any single or partial exercise thereof preclude any other or further exercise of any other right, power, or privilege. 
  
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the Effective Date first written above. 
  

	 UNION PACIFIC CORPORATION
  
 By:                                      
                                        
                       
 Name:                                     
                                        
                  
 Title:                                     
                                        
                     
	  	 OVERNITE CORPORATION
  
 By:                                      
                                        
                  
 Name:                                     
                                        
             
 Title:                                     
                                        
               

  

 -5-Form of Tax Allocation Agreement

 Exhibit 10.8 
  
 TAX ALLOCATION AGREEMENT 
  
 BY AND AMONG 
  
 UNION PACIFIC CORPORATION, 
  
 OVERNITE CORPORATION 
  
 AND 
  
 SUBSIDIARIES 
  
 DATED AS OF
                , 2003 

 TAX ALLOCATION AGREEMENT 
  
 THIS AGREEMENT is entered into as of
                , 2003, between Union Pacific Corporation (“UPC”), a Utah corporation, on behalf of itself and the other members of the UPC Consolidated
Group and the UPC Unitary Group (both as hereinafter defined), and Overnite Corporation, a Virginia corporation, on behalf of itself and the other members of the Overnite Consolidated Group and the Overnite Unitary Group (both as hereinafter
defined), which includes Overnite Holding, Inc. (“OHI”), a Delaware corporation. 
  
 WHEREAS, UPC and OHI were parties to that certain Tax Allocation Agreement between them dated as of January 1, 1991 (the “1991 Agreement”) setting forth and confirming: certain matters relating to the
inclusion of OHI and certain other companies in the UPC consolidated Federal Income Tax returns and Unitary Income Tax returns; the allocation of Tax liabilities for periods during which OHI and other companies were or would be Subsidiaries of UPC;
the administration of Tax audits and proceedings; and the principles embodied in Tax allocation policies then in effect between UPC and OHI; and 
  
 WHEREAS, the 1991 Agreement provides that it may be amended only by written agreement of UPC and OHI; and 
  
 WHEREAS, in connection with the Acquisition and the Offering (both as
hereinafter defined), OHI will become a wholly-owned subsidiary of Overnite Corporation, and Overnite Corporation and its Subsidiaries will cease to be members of the UPC Consolidated Group and the UPC Unitary Group; and 
  
 WHEREAS, the members of the Overall Consolidated Group (as defined
below) desire to amend and restate the 1991 Agreement to reflect the Offering and for other reasons; 
  
 NOW, THEREFORE, the parties hereto, intending to be legally bound, agree that the 1991 Agreement is amended and restated in full as follows:

  
 ARTICLE I 
  
 DEFINITIONS AND OTHER PROVISIONS 
  
 For purposes of this Agreement, the following terms shall have the meanings
ascribed to them. Each such term may be used in either the singular or the plural. 
  
 Section 1.1. 1991 Agreement. The term “1991 Agreement” has the meaning ascribed to such term in the first premise
of this Agreement. 
  
 Section 1.2.
2001 Motor Cargo Merger Agreement. The term “2001 Motor Cargo Merger Agreement” means the Agreement and Plan of Merger By and Among Motor Cargo Industries, Inc., Union Pacific Corporation and Motor Merger Co. dated as of October
15, 2001. 
  

 1 

 Section 1.3. 2003 Pre-Offering Period. The term “2003 Pre-Offering
Period” means the Pre-Offering Period beginning January 1, 2003. 
  
 Section 1.4. Acquisition. The term “Acquisition” means UPC’s transfer of all the issued and outstanding shares of common stock of OHI to Overnite Corporation in exchange for all of the
issued and outstanding stock of Overnite Corporation and a promissory note, as contemplated in the Stock Purchase and Indemnification Agreement. 
  
 Section 1.5. Actual Loss. The term “Actual Loss” means the amount of all Taxes actually incurred or Tax Benefits
lost (in either case based upon the Tax law in effect at the time of loss and discounted at the Applicable Federal Rate using monthly compounding) by a Party as a result of an action (or failure to act) by another Party with respect to matters
described in this Agreement. Such Tax or lost Tax Benefit resulting from such action (or failure to act) shall be calculated using the allocated Tax liability for the appropriate Tax jurisdiction, net of the present value of any reasonably
anticipated related offsetting Tax Benefit (based upon the Tax law in effect at the time of computation) discounted at the Applicable Federal Rate using monthly compounding. 
  
 Section 1.6. Additional Shares. The term “Additional Shares” has the same meaning as
in the Underwriting Agreement. 
  
 Section
1.7. Aggregate Deemed Sales Price. The term “Aggregate Deemed Sales Price” means the Aggregate Deemed Sales Price as determined under Code Section 338 and the Treasury regulations thereunder and the corresponding provisions of
state or local law. 
  
 Section 1.8.
Applicable Federal Rate. The term “Applicable Federal Rate” means the Federal short-term rate, with monthly compounding, as determined under Code Section 1274(d). 
  
 Section 1.9. Business Day. The term “Business Day” means a day of the year on which
banks are not required or authorized to close in New York City. 
  
 Section 1.10. Code. The term “Code” means the Internal Revenue Code of 1986, as amended, and any successor statute. 
  
 Section 1.11. Federal Income Tax. The term “Federal Income Tax” means the Income
Taxes imposed under the Code. 
  
 Section
1.12. Income Tax. The term “Income Tax” means any domestic Tax (whether denominated as “income tax,” a “franchise tax” or otherwise), based upon taxable income of an entity or group of entities. 

 
 Section 1.13. Item. The term
“Item” means a Tax attribute, item of income, loss, deduction, preference, or credit attributable to the assets or activities of a Party. 
  
 Section 1.14. Miscellaneous Tax. The term “Miscellaneous Tax” means any Tax other than Federal Income Tax, Unitary
Income Tax, and Separate Return Income Tax 
  

 2 

 (including but not limited to excise Taxes, windfall profits Taxes, value added Taxes, franchise Taxes
based on net worth, real property Taxes, personal property Taxes, severance Taxes, single business Taxes, gross receipts Taxes, state or local sales or use Taxes, employment and payroll Taxes and premiums, and all foreign Taxes). 
  
 Section 1.15. Motor Cargo. The term
“Motor Cargo” means, collectively, Motor Cargo Industries, Inc., a Utah corporation, as that corporation existed before the transactions consummated pursuant to the 2001 Motor Cargo Merger Agreement, Motor Cargo Industries, Inc., a Utah
corporation, as that corporation has existed since such transactions and all Subsidiaries (whether or not currently in existence) of either such corporation. 
  

Section 1.16. Motor Cargo Pre-Consolidation Income Taxes. The term “Motor Cargo Pre-Consolidation Income Taxes”
means all Income Taxes imposed on or payable by Motor Cargo for any taxable period beginning before the date Motor Cargo joined the Overall Consolidated Group. 
  

Section 1.17. Negotiation Period. The term “Negotiation Period” means the period beginning with receipt of
notice of a dispute and ending with receipt of notice by one Party that the other Party wishes to end the Negotiation Period, as described in Section 8.1 of this Agreement. 
  
 Section 1.18. Nexus. The term “Nexus” means the level of activity that must be
established in a Taxing jurisdiction to enable it to impose an Income Tax. 
  
 Section 1.19. Offering. The term “Offering” means UPC’s sale of Overnite Corporation stock through a public offering as contemplated in the Stock Purchase and Indemnification Agreement.

  
 Section 1.20. Offering Date.
The term “Offering Date” means the date on which OHI ceases to be a member of the Overall Consolidated Group. 
  
 Section 1.21. Overall Consolidated Group. The term “Overall Consolidated Group” means the group of corporations
composed of the Overnite Consolidated Group and the UPC Consolidated Group (both as defined below). 
  
 Section 1.22. Overall Unitary Group. The term “Overall Unitary Group” means the group of corporations composed of
the Overnite Unitary Group and the UPC Unitary Group (both as defined below). 
  
 Section 1.23. Overnite Consolidated Group. For all periods through the date that OHI becomes a wholly-owned Subsidiary of Overnite Corporation, the term “Overnite Consolidated Group” means OHI
and all other corporations that, but for UPC’s ownership of the stock of OHI, would be members of an affiliated group of corporations (within the meaning of Section 1504(a) of the Code) having OHI as its common parent, (including disregarded
entities, within the meaning of Treasury Regulation Section 301.7701-3(b)(1)(ii) owned by such members). For all periods thereafter, the term “Overnite Consolidated Group” means Overnite Corporation and all other corporations that are
members of the affiliated group of corporations (within the meaning of Section 1504(a) of the Code) of 
  

 3 

 which Overnite Corporation is (or, but for UPC’s ownership of the stock of Overnite Corporation,
would be) the common parent, (including disregarded entities within the meaning of Treasury Regulation Section 301.7701-3(b)(1)(ii) owned by such members), together with any other corporations which may become members of such affiliated group and
any passthrough entities in which Overnite Corporation or any member of such affiliated group may become a member. 
  
 Section 1.24. Overnite Miscellaneous Tax. The term “Overnite Miscellaneous Tax” means any Miscellaneous Tax for
which any member of the Overnite Consolidated Group or Overnite Unitary Group is liable under applicable law. 
  
 Section 1.25. Overnite Separate Return Income Tax. The term “Overnite Separate Return Income Tax” means a Separate
Return Income Tax for which any member of the Overnite Consolidated Group or Overnite Unitary Group is liable under applicable law. States and local jurisdictions where members of the Overnite Consolidated Group and Overnite Unitary Group file on a
separate company basis are identified in Appendix I. 
  
 Section 1.26. Overnite Unitary Group. For all periods through the date that OHI becomes a wholly-owned Subsidiary of Overnite Corporation, the term “Overnite Unitary Group” means OHI and all other entities that, but
for UPC’s ownership of the stock of OHI, would be identified by a state or local Taxing Authority as the basis for the Unitary Income Tax assessment and Unitary Income Tax Return of OHI. For all periods thereafter, the term “Overnite
Unitary Group” means Overnite Corporation and all other entities identified by a state or local Taxing Authority as the basis for the Unitary Income Tax assessment and Unitary Income Tax Return of Overnite Corporation. 
  
 Section 1.27. Party. The term
“Party” means either the members of the UPC Consolidated Group or of the Overnite Consolidated Group as the context requires. 
  
 Section 1.28. Post-Offering Period. The term “Post-Offering Period” means any taxable period beginning after the
Offering Date. 
  
 Section 1.29.
Pre-Offering Period. The term “Pre-Offering Period” means any taxable period ending on or prior to the Offering Date. 
  
 Section 1.30. Section 338(h)(10) Defense Cost. The term “Section 338(h)(10) Defense Cost” means an out-of-pocket
cost actually and reasonably incurred by a Party in defending the validity of the Section 338(h)(10) Elections (or any of them) to the Internal Revenue Service or other Taxing Authority, in connection with any administrative proceedings (including
but not limited to examination, claim for refund, amended return, request for ruling, technical advice or other internal procedure, appeal or alternative dispute resolution procedure) or litigation. 
  
 Section 1.31. Section 338(h)(10) Election. The
term “Section 338(h)(10) Election” means an election under Section 338(h)(10) of the Code and the regulations thereunder and any similar elections available under any applicable state or local law with respect to (a) the Acquisition, and
(b) each of the deemed acquisitions of the stock of all the direct and indirect Subsidiaries of OHI except Motor Cargo. 
  

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 Section 1.32. Separate Return Income Tax. The term “Separate Return
Income Tax” means any state or local Income Tax, other than a Unitary Income Tax, incurred by any member of the Overall Consolidated Group. 
  
 Section 1.33. Stock Purchase and Indemnification Agreement. The term “Stock Purchase and Indemnification
Agreement” means the Stock Purchase and Indemnification Agreement dated                 , 2003, among UPC, Overnite Corporation, OHI, Overnite Transportation
Company, and Motor Cargo Industries, Inc. 
  
 Section 1.34. Subsidiary. A “Subsidiary” of a corporation is a business entity (including, but not limited to, a corporation, partnership, limited partnership, limited liability company, limited partnership or
business trust) of which such corporation owns more than 50% of the issued and outstanding equity interests (as the case may be, including but not limited to, stock or partnership membership or beneficial interests). 
  
 Section 1.35. Tax. The term “Tax”
means any federal, state, territorial, local, foreign and other net income, gross income, gross receipts, sales, use, value added, ad valorem, transfer, franchise, profits, license, lease, service, service use, withholding, payroll, employment,
unemployment insurance, workers compensation, social security, excise, severance, stamp, business license, occupation, premium, property, environmental, windfall profits, customs, duties, alternative minimum, estimated or other Tax, fee, premium,
assessment or charge of any kind whatever imposed or collected by any governmental entity or political subdivision thereof, which any member of the UPC Consolidated Group, UPC Unitary Group, Overnite Consolidated Group or Overnite Unitary Group is
required to pay, collect or withhold, together with any interest, penalties, additions to Tax, or additional amounts with respect thereof, in each case through date of payment. 
  
 Section 1.36. Tax Benefit. The term “Tax Benefit” means (a) any refund, credit,
carryover, carryback or other reduction in otherwise required Tax payments; and (b) any decrease in any Tax in one Tax period that results from an adjustment to liability for Tax in another Tax period, such as an increase in a deduction for
depreciation that results from a determination that, in a previous Tax period, an expenditure is capitalized and not deducted, or that an item of gain is recognized. 
  
 Section 1.37. Taxing Authority. The term “Taxing Authority” means any governmental
authority (whether United States or non-United States, and including any state, municipality, political subdivision or governmental agency) responsible for the imposition or administration of any Tax. 
  
 Section 1.38. Underwriting Agreement. The term
“Underwriting Agreement” means the Underwriting Agreement dated [], 2003, among: UPC, Overnite Corporation, OHI, and Credit Suisse First Boston, LLC, and Morgan Stanley & Co. Incorporated as representatives of the several underwriters.

  
 Section 1.39. Unitary Income
Tax. The term “Unitary Income Tax” means a state or local Income Tax which reflects the combined or consolidated reporting (either on a domestic or worldwide basis) of any of the Parties and their respective affiliates for a state or

  

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 local jurisdiction which either (a) imposes its Income Tax on its apportioned and/or allocable share of
the taxable income of a taxpayer and its domestic affiliates that are engaged in a “unitary business”, part of which is conducted in the state or (b) imposes its Income Tax on its apportioned and/or allocable share of the taxable income of
a taxpayer and its affiliates – both domestic and foreign – that are engaged in a unitary business. States and local jurisdictions where UPC and affiliates file on a unitary basis are identified in Appendix I. 
  
 Section 1.40. Unitary Group. The term
“Unitary Group” means one of: the Overnite Unitary Group, the UPC Unitary Group or the Overall Unitary Group. 
  
 Section 1.41. UPC Consolidated Group. The term “UPC Consolidated Group” means the affiliated group of corporations
(within the meaning of Section 1504(a) of the Code) of which UPC is the common parent (including disregarded entities within the meaning of Treasury Regulation Section 301.7701-3(b)(1)(ii) owned by such members), including corporations (and their
disregarded entities) that were but no longer are part of such affiliated group, but excluding the members of the Overnite Consolidated Group. 
  
 Section 1.42. UPC Separate Return Income Tax. The term “UPC Separate Return Income Tax” means a Separate Return
Income Tax for which any member of the UPC Consolidated Group is liable under applicable law. 
  
 Section 1.43. UPC Miscellaneous Tax. The term “UPC Miscellaneous Tax” means any Miscellaneous Tax for which any
member of the UPC Consolidated Group is liable under applicable law. 
  
 Section 1.44. UPC Unitary Group. The term “UPC Unitary Group” means UPC and all other entities identified by a state or local Taxing jurisdiction as the basis for the Unitary Income Tax
assessment and Unitary Income Tax Returns of UPC, but excluding the members of the Overnite Unitary Group. 
  
 ARTICLE II 
  
 FILING OF CONSOLIDATED RETURNS AND ELECTIONS 
  
 Section 2.1. Consolidated and Unitary Returns. For the 2003 Pre-Offering Period, UPC shall, to the extent permitted by law, include (a) the Overnite Consolidated Group in its Federal Income Tax return
for the Overall Consolidated Group and (b) the Overnite Unitary Group in its Unitary Income Tax returns for the Overall Unitary Group. UPC shall have the right to obtain extensions of time to file these returns as it deems necessary in its sole
discretion. These returns shall be prepared by UPC and shall be filed in a timely manner. UPC shall have sole responsibility and control with respect to determining Tax return positions for the Overnite Consolidated Group Items and the Overnite
Unitary Group Items for the 2003 Pre-Offering Period; provided, however, UPC shall use for the Overnite Consolidated Group and Overnite Unitary Group any Tax return positions that are requested by Overnite Corporation and both Parties agree are
appropriate under applicable law (including regulations), if the effect of doing so would be to produce a Tax Benefit of 
  

 6 

 $50,000 or more in the aggregate with respect to any Income Taxes allocated to Overnite Corporation under
this Agreement or any Overnite Separate Return Income Tax without producing an Actual Loss with respect to Income Taxes allocated to UPC under this Agreement. 
  

Section 2.2. Filing Information. 
  
 (a) Overnite Corporation shall supply UPC with (i) a completed pro forma consolidated Federal Income Tax
return for the Overnite Consolidated Group for the 2003 Pre-Offering Period, together with all appropriate information necessary for the integration of such return into the consolidated Federal Income Tax return for the Overall Consolidated Group
for such period, and (ii) the data and information relating to the Overnite Unitary Group necessary to prepare the Unitary Income Tax returns to be filed by UPC under this Agreement. 
  
 (b) All the returns and information set forth in Section 2.2(a) shall be provided pursuant to timetables and
instructions as mutually agreed by UPC and Overnite Corporation. In the event that Overnite Corporation (i) either does not timely provide such information or provides information that is incomplete or otherwise not reasonably satisfactory to UPC,
and (ii) Overnite Corporation does not cure such defect within 30 Business Days after UPC gives notice thereof, UPC shall be entitled to require Overnite Corporation to engage, at Overnite Corporation’s expense, an independent accounting firm
reasonably acceptable to UPC and Overnite Corporation to gather and provide the information which Overnite Corporation is required to provide under this Section 2.2. 
  
 (c) The returns and information provided by Overnite Corporation pursuant to Section 2.2(a) shall be
consistent with all elections and accounting methods used by the Overnite Consolidated Group in previous Tax periods, except as otherwise required by applicable law (including regulations) or agreed to by UPC. In addition, the Overnite Consolidated
Group shall notify UPC of any changes to elections or accounting methods from the prior year. The Overnite Consolidated Group shall indemnify UPC for any Actual Loss suffered by the UPC Consolidated Group due to any failure of the Overnite
Consolidated Group to comply with these requirements. 
  
 Section 2.3. Section 338(h)(10) Elections. 
  
 (a) Overnite Corporation and UPC agree to make and file the Section 338(h)(10) Elections jointly and in a timely manner. 
  
 (b) As requested from time to time by UPC (whether before, at, or after the Offering Date), Overnite Corporation shall assist UPC in, and
shall provide the necessary information to UPC in connection with, the preparation of Internal Revenue Service Form 8023, Elections Under Section 338 For Corporations Making Qualified Stock Purchases, and any comparable or related forms required
under any applicable state or local law, and the required schedules or statements thereto (the “Section 338 Election Forms”) relating to the Section 338(h)(10) Elections. Without limiting the generality of the preceding sentence and with
respect to each Section 338 Election Form delivered by UPC to Overnite Corporation on or before the Offering Date, Overnite Corporation shall, no later than the Offering Date, cause 
  

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 each such Section 338 Election Form to be duly executed by Overnite Corporation or an affiliate of
Overnite Corporation, as appropriate, and shall deliver the same to UPC at the Offering Date. If UPC determines at or after the Offering Date that any change is to be made in a Section 338 Election Form previously executed by Overnite Corporation or
an affiliate of Overnite Corporation and delivered by Overnite Corporation to UPC, then UPC may prepare a new Section 338 Election Form and deliver such new Section 338 Election Form to Overnite Corporation, and Overnite Corporation shall cause such
Section 338 Election Form to be duly executed by Overnite Corporation or an affiliate of Overnite Corporation, as appropriate, and shall promptly deliver such executed Section 338 Election Form to UPC. 
  
 (c) UPC shall timely file (or cause to be filed) the Section
338 Election Forms on behalf of UPC and Overnite Corporation, and shall provide notice of such filing to Overnite Corporation. UPC and Overnite Corporation shall thereafter take any and all actions necessary or appropriate to effect the timely
filing of any other Section 338 Election Forms required to be filed for any applicable state or local tax purposes. 
  
 (d) With respect to the filings described in Section 2.3(c) above, the members of the UPC Consolidated Group and the Overnite Consolidated
Group will (i) treat as valid the Section 338(h)(10) Elections, (ii) not take any action inconsistent with such treatment and (iii) timely file, or cause to be filed, all tax returns affected by such filings in a manner consistent with the Section
338(h)(10) Elections (including but not limited to attaching such Section 338 Election Forms and the schedules related thereto to the appropriate tax returns in the manner prescribed by applicable regulations or other applicable law). 
  
 (e) Within 90 Days of the Offering Date, Overnite
Corporation shall present to UPC a completed Internal Revenue Service Form 8883, Asset Allocation Statement Under Section 338, and any comparable or related forms under any applicable state or local law. Provided such allocation of the Purchase
Price is reasonable, UPC shall adopt the same allocation on its own Form 8883, and any comparable or related forms under any applicable state or local law. If UPC determines that such allocation is not reasonable, the Parties shall take reasonable
steps to come to an agreement on an allocation. 
  
 (f) Each of the members of the UPC Consolidated Group and Overnite Consolidated Group hereby covenants to take all appropriate actions to ensure the validity and effectiveness of the Section 338(h)(10) Elections, and not to take any action
which jeopardizes their validity and effectiveness. For purposes of this Section 2.3(f), an action which jeopardizes the validity and effectiveness of the Section 338(h)(10) Elections includes, but is not limited to, the issuance by Overnite
Corporation of Overnite Corporation voting stock to a person or persons (other than UPC) who collectively would own stock constituting 70% or more of the combined voting power of all classes of Overnite Corporation stock entitled to vote immediately
after any such issuance. 
  
 (g) Overnite
Corporation shall not, during the 180-day period commencing on the Offering Date, offer, pledge, sell, contract to sell, sell any option, sell any contract to purchase, grant any option, right or warrant to purchase, or issue stock in itself other
than transactions described in the Form S-1 Registration Statement filed with the United States Securities and Exchange Commission on August 4, 2003, and amended on
                , 2003 unless 
  

 8 

 Overnite Corporation receives prior written consent from UPC. UPC shall respond to any request for
consent within 30 calendar days, and shall not withhold consent unless, in the opinion of UPC’s Vice President—Tax, such action by Overnite Corporation would jeopardize the validity of any of the Section 338(h)(10) Elections. UPC and all
members of the UPC Consolidated Group shall keep any request under this Section 2.3(g), and any information associated with such request, strictly confidential; shall not disclose any such information to any other party unless required by law; and
shall not use any such information in any manner that could violate any federal or state securities law. 
  
 Section 2.4. Other Elections. 
  
 (a) Overnite Corporation shall execute and file any and all consents, elections, or other similar documents
and shall maintain in effect previously filed elections, consents, or other similar documents necessary or appropriate to effect the filing of the consolidated Federal Income Tax and Unitary Income Tax returns for the Overall Consolidated Group for
the 2003 Pre-Offering Period. 
  
 (b) UPC shall
determine, in its sole discretion, whether an election under either Treasury Regulation Section 1.1502-76(b)(2)(ii) (to ratably allocate a year’s items) or Section 1.1502-76(b)(2)(iii) (to ratably allocate a month’s items) should be made,
and the Overnite Consolidated Group shall make such elections if and only if instructed by UPC. 
  
 ARTICLE III 
  
 TAX
ALLOCATIONS 
  
 Section 3.1. Prior
Tax Allocations. Except as otherwise provided herein, all Tax payments, allocations and settlements between the Parties made prior to the Offering (including, but not limited, to those made pursuant to the 1991 Agreement) shall be final, and
neither Party shall have a claim against the other under this Agreement relating to any such Tax payment, allocation or settlement. 
  
 Section 3.2. Consolidated Federal Income Tax and Tax Benefits. 
  
 (a) Except as provided in Sections 3.6 and 3.7 and subject
to Section 7.1, with respect to any Pre-Offering Period, all Federal Income Tax and Tax Benefits relating thereto of the Overall Consolidated Group (including all Federal Income Tax and Tax Benefits in any Pre-Offering Period of the Overall
Consolidated Group resulting from the Acquisition and the Offering) shall be allocated to UPC. 
  
 (b) With respect to any Post-Offering Period, (i) all Federal Income Tax and Tax Benefits relating thereto of the Overnite Consolidated
Group (including all Federal Income Tax Benefits in any Post-Offering Period of the Overnite Consolidated Group resulting from the Acquisition and the Offering) shall be allocated to Overnite Corporation, and (ii) all Federal Income Tax and Tax
Benefits relating thereto of the UPC Consolidated Group shall be allocated to UPC. 
  

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 (c) All Tax Benefits from eliminating interest on overlapping periods of Federal Income
Tax overpayments and underpayments under Section 6621 of the Code that in any way involve Federal Income Taxes for any Pre-Offering Period shall remain with UPC, and any claims or requests to apply this provision to Federal Income Taxes that in any
way involve Federal Income Taxes for any Pre-Offering Period shall remain the sole responsibility of UPC. The Overnite Consolidated Group shall not file any claim or request to eliminate interest on overlapping periods of Tax overpayments and
underpayments that in any way involves Federal Income Taxes for any Pre-Offering Period. 
  
 Section 3.3. Unitary Income Tax and Tax Benefits. 
  
 (a) Except as provided in Sections 3.6 and 3.7 and subject to Section 7.1, with respect to any Pre-Offering
Period, all Unitary Income Tax and Tax Benefits due to or receivable from a Taxing Authority by any member of the Overall Unitary Group (including all Unitary Income Tax and Tax Benefits in any Pre-Offering Period of the Overall Unitary Group
resulting from the Acquisition and the Offering) shall be allocated to UPC. Nexus for purposes of the determination of the Unitary Income Tax Liability in a particular jurisdiction shall be determined solely by UPC. Should a Taxing Authority
subsequently determine Nexus differently from a determination previously made, the Unitary Income Tax liability shall be governed by such Tax authority’s sustained or agreed upon final determination, and any additional Unitary Income Tax
liabilities arising therefrom shall be allocated to UPC with respect to any Pre-Offering Period. 
  
 (b) With respect to any Post-Offering Period, (i) all Unitary Income Tax for which any member of the Overnite Unitary Group is liable, and
any Tax Benefit relating to Unitary Income Tax to which any member of the Overnite Unitary Group is entitled (including all Unitary Income Tax Benefits in any Post-Offering Period of the Overnite Unitary Group resulting from the Acquisition and the
Offering), shall be allocated to Overnite Corporation, and (ii) all Unitary Income Tax for which any member of the UPC Unitary Group is liable, and any Tax Benefit relating to Unitary Income Tax to which any member of the UPC Unitary Group is
entitled, shall be allocated to UPC. 
  
 Section 3.4. Separate Return Income Taxes and Tax Benefits. Except as otherwise provided in Section 3.7, all liabilities for Separate Return Income Taxes shall remain the sole responsibility of the particular entity which
incurred or whose predecessor incurred the liability or whose activities (or predecessors’ activities) resulted in the liability. Likewise, any Tax Benefits relating to Separate Return Income Tax (including but not limited to refunds received
as a result of audits, claims or amended returns) shall be the sole property of the entity which is entitled to the refund or claim under applicable law. Nexus for purposes of the determination of Overnite Separate Return Income Tax liability in any
jurisdiction shall be determined by Overnite Corporation. Should a Taxing Authority subsequently determine Nexus differently from a determination previously used, the Overnite Separate Return Income Tax liability shall be governed by such Taxing
Authority’s sustained or agreed upon final determination, and any additional Overnite Separate Return Income Tax arising therefrom shall remain the liability of the particular entity which incurred or whose predecessor incurred the liability or
whose activities (or predecessors’ activities) resulted in the liability. 
  

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 Section 3.5. Miscellaneous Taxes and Tax Benefits. All liabilities for
Miscellaneous Taxes shall remain the sole responsibility of the particular entity which incurred or whose predecessor incurred the liability or whose activities (or predecessors’ activities) resulted in the liability. Likewise, any Tax Benefits
relating to any Miscellaneous Taxes (including but not limited to refunds received as a result of audits, claims or amended returns) shall be the sole property of the entity which is entitled to the refund or claim by operation of law or under the
terms of this Agreement. 
  
 Section 3.6.
Adjustments for Liabilities. If (i) any liability (including but not limited to a contingent liability) of any member of the Overnite Consolidated Group or the Overnite Unitary Group becomes payable or accrues after the Offering Date, and
(ii) such event results in a net increase in the Aggregate Deemed Sales Price, then any Income Tax resulting therefrom shall be allocated to the Overnite Consolidated Group; provided, however, that such Income Tax shall be allocated to UPC to the
extent that either (x) the UPC Consolidated Group receives a corresponding and offsetting Tax Benefit relating to such liability in any Post-Offering Period, or (y) the Overall Consolidated Group receives such Tax Benefit relating to such liability
in any Pre-Offering Period. The members of the UPC Consolidated Group and the Overall Consolidated Group shall claim all deductions to which they are entitled under the Tax law with respect to any liability giving rise to the application of this
Section 3.6. 
  
 Section 3.7. Motor
Cargo Pre-Consolidation Income Taxes. All Motor Cargo Pre-Consolidation Income Taxes and Tax Benefits relating thereto, shall be allocated to Overnite Corporation. 
  
 ARTICLE IV 
  
 TAX PAYMENTS AND SETTLEMENTS 
  
 Section 4.1. Notice. UPC shall give Overnite Corporation notice within 30 Business Days of assessments, refund claims, or
amended returns associated with any Pre-Offering Period so that Overnite Corporation may determine any effect such items may have on its Overnite Separate Return Income Taxes and on its Taxes with respect to any Post-Offering Period. 
  
 Section 4.2. Actions by Taxing Authorities.
Where a Taxing Authority has made or makes assessments, abatements, credits, refunds, or similar items; or posts payments, assessments, abatements, credits, refunds, or similar items on or against one Party’s Tax account which are properly
attributable hereunder to the other Party, the Party receiving such item shall provide notice to the other Party within 30 Business Days of discovering such action and the Parties shall cooperate with each other and work together to resolve the
matter with the appropriate Taxing Authority. Where the matter cannot be resolved with the appropriate Taxing Authority, the Parties shall make each other whole as if the Taxing Authority had posted the item to the responsible Party. 
  
 Section 4.3. Payments/Refunds. Payments under
this Agreement shall be made not later than 11:00 a.m. EST on the day when due in U.S. dollars by wire transfer of 
  

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 immediately available funds to the account designated for that purpose by UPC or Overnite Corporation.
Unless a different time is specified for payment hereunder, such payments shall be due fifteen (15) days after appropriate notice is given that such payment is due. Whenever such payments would be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day. If an amount due hereunder has not been paid when due, such amount shall bear interest from the date such payment was due, up to but excluding the date of payment of such amount, at the Applicable
Federal Rate, compounded monthly. 
  
 ARTICLE V 

 
 AUDITS, AMENDED RETURNS, AND LITIGATION 
  
 Section 5.1. Conduct of Examinations; Amended
Returns; Protests; Litigations. 
  
 (a) Except
as otherwise provided in this Article V, UPC shall have sole responsibility and control with respect to: determining Tax positions; the conduct of examinations; the filing of administrative refund claims or amended returns; any administrative
proceedings (including but not limited to requests for rulings, technical advice memoranda, administrative appeals and alternative dispute resolution procedures); and litigation (including the decision to litigate, the choice of forum and the
overall conduct of the litigation) for the Overall Consolidated Group and any member thereof (and for any passthrough entity in which members of the Overall Consolidated Group have a controlling interest) for consolidated Federal Income Taxes and
Unitary Income Taxes for any Pre-Offering Period. With respect to any matter that could result in an increase of $50,000 or more in the aggregate in any Overnite Separate Return Income Tax or any Income Tax allocated to Overnite Corporation (or for
which Overnite Corporation is responsible) under this Agreement, UPC shall consult with Overnite Corporation, keep Overnite Corporation fully informed, and request Overnite Corporation’s approval for any final settlement. Overnite Corporation
shall not unreasonably withhold such approval and shall respond to any such request within 30 calendar days. 
  
 (b) Overnite Corporation shall have sole responsibility and control with respect to: the conduct of examinations; the filing of
administrative refund claims or amended returns; any administrative proceedings; and litigation for Motor Cargo for all tax periods beginning before the date Motor Cargo joined the Overall Consolidated Group. 
  
 (c) The Parties shall cause all members of the Overall
Consolidated Group, and (to the extent within their control) any passthrough entities, to cooperate fully with each other during the course of any examination, refund claim, amended return, administrative proceeding, or litigation. UPC shall keep
Overnite Corporation advised of, and shall provide within 30 Business Days to Overnite Corporation any documents relating to any examination, preparation of refund claims or amended returns, administrative proceedings and litigation to the extent
Overnite Consolidated Group Items or issues are involved. 
  
 (d) If Overnite Corporation shall determine that it is desirable for UPC, Overnite Corporation, or a member of the Overnite Consolidated Group to file a claim for 
  

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 refund or an amended return that in any way involves Federal Income Taxes or Unitary Income Taxes for any
Pre-Offering Period, Overnite Corporation shall prepare and submit such proposed claim to UPC, together with a reasoned analysis of the merits of the proposed claim and a statement setting forth when the statute of limitations on filing such claim
will expire, in sufficient time for UPC to act on such proposed claim. UPC shall reasonably consider and act on any such claim, provided either (i) such claim does not adversely affect UPC, or (ii) Overnite Corporation agrees, in a manner reasonably
satisfactory in form and substance to UPC, to indemnify UPC from and against any Actual Loss that UPC may sustain as a result of the filing of such claim or amended return, the conduct of proceedings relating thereto and the allowance or
disallowance (in whole or in part) thereof. 
  
 (e) To the extent Overnite Corporation’s obligations to indemnify UPC under Section 7.1(e) are involved, Overnite Corporation shall have the right to participate in any proceedings controlled by UPC related to the Section 338(h)(10)
Elections, and to review all correspondence with the Taxing Authority relating to such proceedings. 
  
 Section 5.2. Cost of Examinations, Amended Returns, Protests and Litigations. Each Party shall bear all of its own costs
incurred in connection with examinations, refund claims, amended returns, administrative proceedings and litigation. 
  
 ARTICLE VI 
  
 COOPERATION ON RECORDS 
  
 Section 6.1. Furnishing of Information and Cooperation. 
  
 (a) The Parties shall furnish or cause to be furnished to each other upon request, within 30 Business Days from the date of the request
for such information (and in any event within a reasonable time of such request), such information and assistance as are reasonably necessary for the filing of any return, for the preparation for or conduct of any examination, administrative
proceeding or litigation relating to Taxes, and for the prosecution or defense of any claim, suit, or proceeding relating to any proposed adjustment to or refund of Tax. The Parties shall cooperate with each other in the conduct of any examination,
claim, amended return, administrative proceeding or litigation and each shall execute and deliver (or cause to be executed and delivered) such documents (including but not limited to powers of attorney, returns, elections, and consents) as are
necessary to carry out the intent of this Agreement. 
  
 (b) If, any change (including but not limited to change in applicable law or regulations or their interpretation by any court of law or other governing body having jurisdiction subsequent to the date of this Agreement) occurs that requires
additional information, the Parties shall furnish or cause to be furnished to each other such information and assistance as are reasonable necessary due to the change. 
  
 Section 6.2. Notice of Examinations, Amended Returns, Protests and Litigations. Each Party
shall promptly give notice to the other of any examination, inquiry, litigation, or proposed or actual assessment by a federal, state, local or foreign Taxing 
  

 13 

 Authority covering any potential Tax liability where one Party may have a right to demand payment for
such Tax from, or be indemnified by, the other Party. 
  
 Section 6.3. Record Retention. The UPC and Overnite Consolidated Groups shall comply with the record retention provisions of the Code, as interpreted by Treasury Regulations and relevant administrative rulings of the Internal
Revenue Service. Neither the UPC nor the Overnite Consolidated Groups shall destroy, or permit the destruction of, any records that may relate to any Tax liability of the Overall Consolidated Group without the other’s written consent.

  
 Section 6.4. Remedies.

  
 (a) In recognition of the fact that most
records pertaining to the Overnite Consolidate Group are in the possession of the Overnite Consolidate Group, Overnite Corporation hereby acknowledges and agrees that the failure of any member of the Overnite Consolidated Group or Overnite Unitary
Group to comply with the provisions of this Section 6 may result in substantial harm to the UPC Consolidated Group, including the inability to determine or appropriately substantiate a Tax (or a position in respect thereof) for which the UPC
Consolidated Group (or a member thereof) would be responsible under this Agreement or appropriately defend against an adjustment thereto by a Taxing Authority, and 
  
 (b) In addition to the indemnification provisions of Section 7.4, if any Party fails to provide (i) any
cooperation or information requested pursuant to Section 6.1 by the date reasonably specified by the other Party or (ii) any other information requested pursuant to this Agreement within a reasonable period, as determined in good faith by the
requesting Party, then, without limiting any other remedy available to the requesting Party for breach of the obligations under this Agreement, the requesting Party shall have the right to engage an accounting firm of its choice to gather such
information. Each Party agrees to permit such accounting firm full access to all appropriate records or other information in the possession of any member of such Party’s consolidated group or unitary group during normal business hours, and
promptly to reimburse or pay directly all costs and expenses in connection with the engagement of such accountants. 
  
 Section 6.5. Cost of Producing Records. Each Party shall bear all of its own costs reasonably incurred in connection with
producing any records for the other Party under this Agreement. 
  
 ARTICLE VII 
  
 INDEMNIFICATIONS

  
 Section 7.1. Federal Income
Taxes and Unitary Income Taxes; 2001 Motor Cargo Merger Agreement; Section 338(h)(10) Elections. 
  
 (a) Except as provided to the contrary in Sections 7.1(c) and 7.1(e), the members of the UPC Consolidated Group shall be jointly and
severally liable for and shall indemnify and hold the members of the Overnite Consolidated Group and Overnite Unitary Group harmless from and against Federal Income Tax and Unitary Income Taxes for any Pre- 
  

 14 

 Offering Period, including the Federal Income Tax and Unitary Income Tax related to Section 338(h)(10)
Elections as determined under Article III hereof, but excluding any Motor Cargo Pre-Consolidation Income Taxes. 
  
 (b) The members of the Overnite Consolidated Group and Overnite Unitary Group shall be jointly and severally liable for and shall
indemnify and hold the members of the UPC Consolidated Group harmless from and against all Taxes for any Post-Offering Period allocated to Overnite Corporation under Article III hereof and all Motor Cargo Pre-Consolidation Income Taxes. 

 
 (c) The members of the Overnite Consolidated Group and
Overnite Unitary Group shall be jointly and severally liable for and shall indemnify and hold the members of the UPC Consolidated Group harmless from and against (i) any payment relating to Taxes required to be made by UPC under the 2001 Motor Cargo
Merger Agreement and (ii) any Actual Loss suffered by UPC, in either case if such payment or Actual Loss is caused by any action taken or failure to act, in either case before or after the Offering Date, by the Overnite Consolidated Group or
Overnite Unitary Group that is inconsistent with the treatment of the merger consummated under the 2001 Motor Cargo Merger Agreement as a reorganization within the meaning of Sections 368(a)(1)(A) and 368(a)(2)(D) of the Code; provided, however,
that, for purposes of this Section 7.1(c), neither the Acquisition, the Offering, nor any Section 338(h)(10) Election under this Agreement shall be considered an action taken by the Overnite Consolidated Group or the Overnite Unitary Group. The
members of the UPC Consolidated Group shall be jointly and severally liable for and shall indemnify and hold Overnite Corporation and its Subsidiaries (including Motor Cargo) harmless from and against any Actual Loss suffered or other liability
incurred as a result of the nonqualification of the merger consummated under the 2001 Motor Cargo Merger Agreement as a reorganization within the meaning of Section 368(a)(1)(A) and 368(a)(2)(D) of the Code for any reason other than an action taken
or failure to act, in either case before or after the Offering Date, by the Overnite Consolidated Group or Overnite Unitary Group. 
  
 (d) The members of the UPC Consolidated Group shall be jointly and severally liable for and shall indemnify and hold the members of the
Overnite Consolidated Group harmless from and against any Actual Loss and any Section 338(h)(10) Defense Cost suffered or incurred as a result of the invalidity or ineffectiveness (in whole or in part) of any of the Section 338(h)(10) Elections, if
such invalidity or ineffectiveness is caused by an action or failure to act by a member of the UPC Consolidated Group (and not by an action or failure to act by any member of the Overnite Consolidated Group). For purposes of this Section 7.1(d), the
retention by UPC of any of the Additional Shares shall not be considered an action or failure to act by a member of the UPC Consolidated Group. 
  
 (e) The members of the Overnite Consolidated Group shall be jointly and severally liable for and shall indemnify and hold the members of
the UPC Consolidated Group harmless from and against any Actual Loss and any Section 338(h)(10) Defense Cost suffered or incurred as a result of the invalidity or ineffectiveness (in whole or in part) of any of the Section 338(h)(10) Elections, if
such invalidity or ineffectiveness is caused by an action or failure to act by a member of the Overnite Consolidated Group (and not by an action or failure to act by any member of the UPC Consolidated Group). 
  

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 (f) For purposes of this Article VII, the planning of the structure of the Acquisition
and the Offering shall not be considered an action (or failure to act) by either Party. 
  
 Section 7.2. Separate Return Income Taxes.  
  
 (a) The members of the Overnite Consolidated Group shall be jointly and severally liable for and shall
indemnify and hold the members of the UPC Consolidated Group harmless from and against all Overnite Separate Return Income Taxes of the Overnite Consolidated Group for all periods, as determined under Section 3.4 hereof.  
  
 (b) The members of the UPC Consolidated Group shall be
jointly and severally liable for and shall indemnify and hold the members of the Overnite Consolidated Group harmless from and against all UPC Separate Return Income Taxes for all periods, as determined under Section 3.4 hereof. 

 
 Section 7.3. Miscellaneous Taxes.

  
 (a) The members of the Overnite Consolidated
Group shall be jointly and severally liable for and shall indemnify and hold the members of the UPC Consolidated Group harmless from and against all Overnite Miscellaneous Taxes for all periods, as determined under Section 3.5 hereof. 
  
 (b) The members of the UPC Consolidated Group shall be
jointly and severally liable for and shall indemnify and hold the members of the Overnite Consolidated Group harmless from and against all UPC Miscellaneous Taxes for all periods, as determined under Section 3.5 hereof. 
  
 Section 7.4. Failure to Cooperate on Records.
The members of the Overnite Consolidated Group shall be jointly and severally liable for and shall indemnify and hold the members of the UPC Consolidated Group harmless from and against any Actual Loss suffered by the UPC Consolidated Group due to
any failure of the Overnite Consolidated Group to comply with the requirements of Article VI of this Agreement. The members of the UPC Consolidated Group shall be jointly and severally liable for and shall indemnify and hold the members of the
Overnite Consolidated Group harmless from and against any Actual Loss suffered by the Overnite Consolidated Group due to any failure of the UPC Consolidated Group to comply with the requirements of Article VI of this Agreement. 
  
 Section 7.5. Indemnity Payments. Any indemnity
payment made under this Article VII shall be reduced to account for Tax Benefits realized by the indemnified Party by reason of the facts and circumstances giving rise to the indemnity payment and increased to account for Taxes incurred on the
receipt of the indemnity payment, such that the indemnity payment made to the indemnified Party, when adjusted to take into account such Tax Benefits and Taxes, is equal to the amount required to be indemnified under the relevant section of this
Article VII (for example, Actual Losses plus Section 338(h)(10) Defense Costs in the case of a Section 7.1(d) or 7.1(e) indemnity). 
  

 16 

 ARTICLE VIII 
  
 DISPUTES 
  
 Section 8.1. Negotiation. UPC and Overnite Corporation shall attempt in good faith promptly to resolve any dispute arising
in connection with this Agreement. In the event of any such dispute, either Party may deliver a notice of dispute to the other Party explaining the issue in dispute and beginning the Negotiation Period. Within 90 Business Days of the receipt of such
notice, the appropriate representatives of UPC and Overnite Corporation shall meet to attempt to resolve the dispute. If, within a reasonable time thereafter, the dispute is not resolved by agreement of the Parties, or if one of the Parties fails or
refuses to negotiate the dispute, the issue shall be settled by arbitration pursuant to this Article VIII. Either Party may terminate the Negotiation Period at any time after 120 Business Days have elapsed since the beginning of the Negotiation
Period by giving notice to the other Party. Nothing in this Article VIII shall be construed to extend the time periods set forth in this Agreement during which any Party may make a payment, deliver a notice, provide information, grant or withhold
approval or consent or take any other action. 
  
 Section 8.2. Arbitration Procedure. Either Party may initiate arbitration by giving the other Party written notice within one year following the end of the Negotiation Period. The place of arbitration shall be St. Louis,
Missouri, but not at the offices of any Party. Any time period or deadline specified in this Article VIII may be extended by mutual agreement of the Parties. 
  

Section 8.3. Selection of Arbitrators. UPC and Overnite shall make every reasonable effort to jointly select the
arbitrator. If UPC and Overnite are unable to agree on the designated arbitrator within 20 Business Days after either Party gives notice of arbitration, then the arbitration shall be by a panel of three arbitrators. UPC and Overnite shall each
appoint one arbitrator. The two arbitrators so appointed shall appoint the third arbitrator. If either UPC or Overnite shall fail to appoint an arbitrator within such 20 Business Day period, the arbitration shall be by the sole arbitrator appointed
by the other Party. Whether jointly selected by UPC and Overnite or otherwise, each arbitrator shall be an attorney or accountant who is generally recognized in the Tax community as a qualified and competent Tax practitioner. 
  
 Section 8.4. Settlement Proposals. Each Party
shall present an overall settlement proposal to the arbitrator or arbitrators which shall encompass all issues to be resolved. The proposals from each Party shall set the outer limits of the range within which the arbitrator or arbitrators may make
a determination as to the appropriate settlement result. If such appropriate settlement result is less than $250,000 in amount, it shall be deemed to be zero, unless the arbitrator or arbitrators determine that there was not a reasonable basis for
the position of the non-prevailing Party. If such appropriate settlement result is not less than $250,000 in amount, $250,000 shall be subtracted from such appropriate settlement result by the arbitrator or arbitrators in reaching their
determination of the amount to be awarded one of the Parties, unless the arbitrator or arbitrators determine that there was not a reasonable basis for the position of the non-prevailing Party. 
  

 17 

 Section 8.5. Arbitrator’s Determination Final. The determination made
by the arbitrator or arbitrators shall be conclusive and binding upon the Parties and shall not be subject to appeal, except in the case of manifest factual or mathematical error, or fraud or bias on the part of the arbitrator or arbitrators. The
arbitrator or arbitrators shall also determine which Party shall bear the costs of the arbitration process, including counsel fees, and may allocate such costs between the Parties in any manner. 
  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 Section 9.1. Sharing of Information. Each Party
shall provide the other Party with all relevant Tax accounting information and portions of returns, elections, amended returns, claims for refund, consents, and extensions of the statute of limitations which each files on behalf of the Overall
Consolidated Group (or any members thereof) for any periods which are reasonably requested. Such information shall be provided to the other Party within 30 Business Days of the request. 
  
 Section 9.2. Confidentiality. The Parties agree that, except as otherwise expressly agreed in
writing, any information furnished to the other Party pursuant to this Agreement is confidential. Except to the extent required for the proper filing of returns or resolving a dispute, audit, or litigation, the Parties covenant not to disclose, and
not to permit disclosure of, such information to persons other than their own auditors or Tax advisors. Such auditors or Tax advisors shall be instructed to maintain a level of confidentiality with respect to the information as if the furnishing
Party were their client. Notwithstanding anything herein or in the Stock Purchase and Indemnification Agreement to the contrary, any Party (and any employee, representative, or other agent of any Party) may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the Acquisition, the Offering, and any other transaction contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses) that are provided to it
relating to such tax treatment and tax structure; provided, however, that any such information is required to be kept confidential to the extent necessary to comply with any applicable federal and state securities laws. For purposes of this
paragraph, the tax treatment of any transaction is the purported or claimed Federal Income Tax treatment of the transaction, and the tax structure of any transaction includes any fact that may be relevant to understanding the purported or claimed
Federal Income Tax treatment. 
  
 Section 9.3.
Successors. This Agreement is being entered into by the Parties on behalf of themselves and each member of the UPC Consolidated Group and the Overnite Consolidated Group, respectively. This Agreement shall bind each member of the UPC
Consolidated Group and the Overnite Consolidated Group, and shall continue to bind each such member whether or not it remains affiliated with UPC or Overnite Corporation, as the case may be, and shall be deemed to have been readopted and affirmed on
behalf of any corporation which, subsequent to the date hereof, becomes a member of the UPC Consolidated Group or the Overnite Consolidated Group. This Agreement shall be binding upon and inure to the benefit of any successor to the Parties (by
merger, consolidation, 
  

 18 

 liquidation, acquisition of all or substantially all of a Party’s assets, or otherwise) to the same
extent as if the successor had been an original party to this Agreement. 
  
 Section 9.4. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without regard to the conflict-of-laws principles thereof. 

 
 Section 9.5. Headings. The headings in this
Agreement are for convenience only and shall not be deemed for any purpose to constitute a part of or to affect the interpretation of this Agreement. 
  
 Section 9.6. Notices. Except as otherwise specifically provided in this Agreement or agreed to in writing by UPC and
Overnite Corporation, all notices, claims, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given either (i) when transmitted by fax or electronic mail, receipt of which is
acknowledged by fax or electronic mail, provided a confirming copy is simultaneously mailed (registered or certified mail, postage prepaid, return receipt requested) or (ii) three days after being mailed (registered or certified mail, postage
prepaid, return receipt requested), addressed as follows: 
  

	 (a) If to UPC:
	 	 Vice President-Tax
 Union Pacific
Corporation
 1416 Dodge Street – Room 738 Omaha, NE 68179
 Fax No:
	 	 
			
	 (b) If to Overnite Corporation:
	 	 Chief Financial Officer
 Overnite
Corporation
 1000 Semmes Avenue
 Richmond, VA
23224-2246
 Fax No.:
	 	 

  
 or to such other
person or address as the Party to whom the communication is to be given may have most recently furnished by notice to the other Party. 
  
 Section 9.7. Changes in Law. 
  
 (a) Any reference to a provision of the Code or a law of another jurisdiction shall include a reference to
any applicable successor provision or law. 
  
 (b) If, due to any change in applicable law or regulations or their interpretation by any court of law or other governing body having jurisdiction subsequent to the date of this Agreement, performance of any provision of this Agreement or
any transaction contemplated thereby shall become impracticable or impossible, the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that
contemplated by such provision. 
  

 19 

 Section 9.8. Severability. If any provision of this Agreement is held to be
unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order to achieve the intent of the Parties to the maximum extent practicable. In any event, all other provisions of this Agreement shall be deemed valid, binding,
and enforceable to their full extent. 
  
 Section 9.9. Effective Date. This Agreement shall become effective upon the Offering Date. 
  
 Section 9.10. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed an original but all of which shall together constitute but one and the same instrument. 
  
 Section 9.11. Entire Agreement; Termination of Prior Agreements. This Agreement constitutes the entire agreement between the
Parties concerning the subject matter hereof and supersedes all prior agreements, written or oral, between or among any members of the UPC Consolidated Group, on the one hand, and any members of the Overnite Consolidated Group, on the other hand,
with respect to any Taxes (including but not limited to the 1991 Agreement). Any such prior agreements are hereby terminated and canceled to the extent not incorporated herein, and any rights or obligations existing thereunder are hereby fully and
finally settled without any payment by any party thereto. This Agreement may not be terminated or amended except by written agreement executed by the Parties. 
  

IN WITNESS WHEREOF, each of the parties to this Agreement, intending to be legally bound, has caused this Agreement to be executed by its duly
authorized officer as of the date first above written. 
  

	UNION PACIFIC CORPORATION 
		
	 By:
	 	 
	 	

	 Title:
	 	  

  

	OVERNITE CORPORATION
		
	 By:
	 	 
	 	

	 Title:
	 	  

  

	 OVERNITE HOLDING, INC.

  

		
	By:	 	 
	 	

	 Title:
	 	  

  

 20 

 APPENDIX I 
  
 STATE/LOCAL INCOME TAX RETURNS 
  
 UNITARY JURISDICTIONS 
  
 Pursuant to Section 3.3, all Unitary Income Tax and Tax Benefit (either as determined on returns as originally filed or as adjusted upon examination,
amended return, claim for refund, ultimate settlement, or otherwise), for any Pre-Offering Period in the following jurisdictions shall be allocated to UPC: 
  

	 Arizona
	 	Kansas	 	North Dakota	 	 
	 California
	 	Minnesota	 	Oklahoma	 	 
	 Colorado
	 	Missouri	 	Oregon	 	 
	 Idaho
	 	Montana	 	Portland, Oregon	 	 
	 Illinois
	 	Nebraska	 	Multnomah County, Oregon	 	 
	 Iowa
	 	New Mexico	 	Utah	 	 

  
 SEPARATE RETURN
JURISDICTIONS 
  
 Pursuant to Section 3.4, all Overnite
Separate Return Income Tax and Tax Benefit (either as determined on returns as originally filed or as adjusted upon examination, amended return, claim for refund, ultimate settlement, or otherwise), for all Tax periods in the following jurisdictions
shall be allocated to the Overnite Consolidated Group: 
  

	 Alabama
	 	Warren County Schools,	 	Dayton, Ohio
	 Alaska
	 	 Kentucky
	 	Sharonville, Ohio
	 Arkansas
	 	Louisiana	 	Toledo, Ohio
	 Connecticut
	 	Maine	 	Pennsylvania
	 Delaware
	 	Maryland	 	Puerto Rico
	 Florida
	 	Massachusetts	 	Guaynabo, Puerto Rico
	 Georgia
	 	Michigan	 	Rhode Island
	 Hawaii
	 	Grand Rapids, Michigan	 	South Carolina
	 Indiana
	 	Mississippi	 	Tennessee
	 Kentucky
	 	New Hampshire	 	Texas
	 Bowling Green, Kentucky
	 	New Jersey	 	Vermont
	 Lexington, Kentucky
	 	New York	 	Virginia
	 Board of Education—  
	 	North Carolina	 	West Virginia
	 Lexington, Kentucky
	 	Ohio	 	Wisconsin
	 Louisville, Kentucky
	 	Cleveland, Ohio	 	 

  

 21

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