AGREEMENT AND PLAN OF MERGER

Agreement and Plan of Merger

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CACTUS MERGER SUB, INC | MOBILE MINI, INC | MSG WC HOLDINGS CORP

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Title: AGREEMENT AND PLAN OF MERGER
Governing Law: Delaware Date: 2/28/2008
Law Firm: White Case;Kirkland Ellis

AGREEMENT AND PLAN OF MERGER

BY AND AMONG

MOBILE MINI, INC.,

CACTUS MERGER SUB, INC.,

MSG WC HOLDINGS CORP.

AND

TARGET STOCKHOLDER REPRESENTATIVE

February 22, 2008

Table of Contents

		Page

ARTICLE I	DEFINITIONS	2

§1.1	Definitions	2
§1.2	Other Defined Terms	11
§1.3	Construction	11

ARTICLE II	THE MERGER AND SUBSEQUENT MERGERS	11

§2.1	The Merger	11
§2.2	Certificate of Incorporation of the Surviving Corporation	12
§2.3	By-laws of the Surviving Corporation	12
§2.4	Directors and Officers of the Surviving Corporation	12
§2.5	The Subsequent Mergers	12

ARTICLE III	EFFECT OF THE MERGER ON CAPITAL STOCK	13

§3.1	Conversion of Stock	13
§3.2	Effect on Options	13
§3.3	Delivery of Funds; Surrender of Certificates; Payments	14
§3.4	Determination of Merger Consideration Adjustment	15
§3.5	No Further Rights of Transfers	19
§3.6	Withholding Rights	19
§3.7	Closing	19
§3.8	Further Assurances	20
§3.9	Target Stockholder Representative	20

ARTICLE IV	REPRESENTATIONS AND WARRANTIES OF TARGET	21

§4.1	Authority and Enforceability	21
§4.2	Consents and Approvals; No Violations	21
§4.3	Existence and Good Standing of Target	22
§4.4	Capitalization of Target	22
§4.5	Target Subsidiaries	23
§4.6	SEC Filings	24
§4.7	Financial Statements	25
§4.8	Liabilities	26
§4.9	Books and Records	27
§4.10	Properties; Containers	27
§4.11	Owned Real Property	27
§4.12	Leased Real Property	28
§4.13	Material Contracts	28
§4.14	Litigation	30
§4.15	Taxes	30
§4.16	Insurance	32
§4.17	Intellectual Property	33

Table of Contents

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		Page

§4.18	Compliance with Laws	33
§4.19	Customers	34
§4.20	Employment Relations	34
§4.21	Employee Benefit Plans	35
§4.22	Environmental Laws and Regulations	38
§4.23	Affiliate Transactions	38
§4.24	Permits	38
§4.25	Absence of Changes	39
§4.26	Brokers’ or Finders’ Fees	41
§4.27	Certain Business Practices	41
§4.28	Special Purpose Representations	41
§4.29	Due Diligence by Target	41

ARTICLE V	REPRESENTATIONS AND WARRANTIES OF PARENT	42

§5.1	Authority and Enforceability	42
§5.2	Consents and Approvals; No Violations	42
§5.3	Existence and Good Standing	43
§5.4	Capitalization of Parent	43
§5.5	Parent Subsidiaries	44
§5.6	SEC Filings	45
§5.7	Financial Statements; No Material Adverse Effect	45
§5.8	Liabilities	46
§5.9	Properties; Containers	46
§5.10	Litigation	46
§5.11	Taxes	47
§5.12	Compliance with Laws	47
§5.13	Employee Benefits	48
§5.14	Certain Business Practices	48
§5.15	Brokers’ or Finders’ Fees	48
§5.16	Financing	49
§5.17	Due Diligence by Parent	49

ARTICLE VI	COVENANTS OF TARGET	49

§6.1	Conduct of Business of Target	49
§6.2	Exclusive Dealing	53
§6.3	Review of Target	53
§6.4	Notification of Certain Matters; Amendments to Target Disclosure Letter	54
§6.5	Assistance with Debt Financing	54
§6.6	Resignation of Officers and Directors	55
§6.7	Affiliate Agreements	55
§6.8	Target Option Plans	55
§6.9	WARN	56

Table of Contents

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		Page

§6.10	Parent’s Requests Regarding Employees	56

ARTICLE VII	COVENANTS OF PARENT	57

§7.1	Conduct of Business of Parent	57
§7.2	Debt Financing	57
§7.3	Indemnification of Directors and Officers	58
§7.4	Parent Organizational Documents	58
§7.5	Review of Parent	58
§7.6	Parent Stockholders Approval	59
§7.7	Waiver of Standstill	59
§7.8	Financial Reports	60
§7.9	Compensation and Benefits	60
§7.10	Exclusivity	62
§7.11	Escrowed Shares	62

ARTICLE VIII	COVENANTS OF PARENT AND TARGET	62

§8.1	Regulatory and Other Approvals	62
§8.2	All Commercially Reasonable Efforts	63
§8.3	Public Announcements	64
§8.4	Litigation Support	64

ARTICLE IX	CONDITIONS TO CLOSING	64

§9.1	Conditions to Obligations of Parent and Target	64
§9.2	Conditions to Obligation of Parent	65
§9.3	Conditions to Obligations of Target	66

ARTICLE X	TAX MATTERS	67

§10.1	Tax Return Preparation	67
§10.2	Cooperation	67
§10.3	Tax-Free Reorganization	67

ARTICLE XI	SURVIVAL	68

§11.1	Representations and Warranties	68
§11.2	Indemnification	68
§11.3	Indemnification Procedure	70
§11.4	Third Party Claims	71
§11.5	Calculation of Indemnity Payments	72

ARTICLE XII	TERMINATION AND ABANDONMENT	73

§12.1	Termination	73

iii

Table of Contents

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§12.2	Effect of Termination	73

ARTICLE XIII	MISCELLANEOUS	74

§13.1	Expenses; Transfer Taxes	74
§13.2	Governing Law	74
§13.3	Jurisdiction; Agents for Service of Process	74
§13.4	Table of Contents; Captions	74
§13.5	Notices	74
§13.6	Assignment; Parties in Interest	76
§13.7	Counterparts	76
§13.8	Entire Agreement	76
§13.9	Amendments	76
§13.10	Severability	76
§13.11	Third Party Beneficiaries	77
§13.12	No Strict Construction	77
§13.13	Waiver of Jury Trial	77
§13.14	Specific Performance	77

Table of Contents

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ANNEXES

Annex A	-	Other Defined Terms

EXHIBITS

Exhibit A	-	Form of Joinder Agreement
Exhibit B	-	Form of Escrow Agreement
Exhibit C	-	Form of Stockholders Agreement
Exhibit D	-	Form of Series A Convertible Redeemable Participating Preferred Stock Certificate of Designation
Exhibit E	-	Form of Amendment to Amended and Restated Certificate of Incorporation of Parent
Exhibit F	-	List of Indebtedness of Target and its Subsidiaries as of December 31, 2007

AGREEMENT AND PLAN OF MERGER

THIS AGREEMENT AND PLAN OF MERGER, dated February 22, 2008 (this “ Agreement ”), by and among MOBILE MINI, INC., a Delaware corporation (the “ Parent ”), CACTUS MERGER SUB, INC., a Delaware corporation and a direct wholly-owned subsidiary of Parent (“ Merger Sub ”), MSG WC HOLDINGS CORP., a Delaware corporation (the “ Target ”), and Target Stockholder Representative (as defined below), on the other hand.

WITNESSETH :

WHEREAS, the respective Boards of Directors of Parent, Merger Sub and Target have, on the terms and subject to the conditions set forth in this Agreement, (a) determined that the merger of Merger Sub with and into Target, as set forth below (the “ Merger ”), is fair to, and in the best interests of, their respective stockholders, and declared that the Merger is advisable, (b) authorized and approved this Agreement, the Merger, the execution and delivery of the other agreements referred to herein, and the consummation of the transactions contemplated hereby and thereby and (c) in the case of Target, recommended acceptance of the Merger and approval and adoption of this Agreement to its stockholders, in accordance with the Delaware General Corporation Law, as amended (the “ DGCL ”);

WHEREAS, pursuant to the terms and subject to the conditions set forth in this Agreement, all of the issued and outstanding shares of common stock, par value $0.01 per share, of the Target Common Stock (as defined below) shall be converted pursuant to the Merger into the right to receive a combination of cash and shares of convertible redeemable participating preferred stock, par value $0.01 per share of Parent, pursuant to the terms of the Certificate of Designation (as defined below) (“ Parent Preferred Stock ”), as herein provided;

WHEREAS, Parent and Target desire to make certain representations, warranties, covenants and agreements in connection with the Merger and also to prescribe various conditions to the Merger; and

WHEREAS, simultaneously herewith, certain of the equity holders of Target have executed a joinder to this Agreement in the form of Exhibit A hereto (the “ Joinder Agreement ”) pursuant to which each such equity holder, among other things, adopted this Agreement, consented to the transactions contemplated hereby, waived appraisal rights, agreed to the indemnification and other provisions contained herein applicable to the equityholders, agreed to non-compete/non-solicitation provisions, agreed to the termination of the Sponsor Stockholders Agreement effective as of the Effective Time, and made various representations and warranties.

WHEREAS, immediately following the Merger, the parties shall undertake the Subsequent Merger (as defined below).

NOW, THEREFORE, in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth herein, and other valuable consideration, the sufficiency and receipt of which is hereby acknowledged, and intending to be legally bound hereby, Parent, Merger Sub, Target and the Target Stockholder Representative (each, a “ Party ” and collectively, the “ Parties ”), hereto agree as follows:

ARTICLE I

DEFINITIONS

§1.1 Definitions . When used in this Agreement, the following terms shall have the meanings assigned to them in this Section 1.1.

“ Acquisition Amount ” means the value of any corporate acquisition by Target or any of its Subsidiaries approved by Parent in writing.

“ Affiliate ” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with, such Person; provided that, for the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise; and, provided , further , that, for purposes of Sections 4.13 and 4.23, an Affiliate of any Person shall also include (i) any Person that directly or indirectly owns more than five percent (5%) of any class of capital stock or other equity interest of such Person, (ii) any current officer or director of such Person, and (iii) any spouse, parent or child of any Person described in clauses (i) or (ii) above.

“ Ancillary Agreements ” means the Escrow Agreement, the Stockholders Agreement, the Joinder Agreement, the Certificate of Designation, the Certificate of Incorporation Amendment and any other agreement, instrument and document delivered in connection with the transactions contemplated by this Agreement including, without limitation, any letter of transmittal.

“ Business Day ” means any day, other than a Saturday, Sunday or other day on which banks located in New York City, New York or Tempe, Arizona are authorized or required by Law to close.

“ CapEx Budget ” means that certain Adjusted Capital Expenditures Budget of Target for the calendar year ended December 31, 2008 included in Section 4.7(d) of the Target Disclosure Letter.

“ Capital Expenditures ” means new additions of storage containers, steel offices and other similar units to the lease fleet, including transportation, manufacturing and refurbishment costs incurred in bringing such units to rent ready status that are properly capitalizable in accordance with GAAP. For the avoidance of doubt, “Capital Expenditures” will be (A) increased (i) expenditures related to refurbishing or transporting units (during January and February, 2008)already in service or acquired through business acquisitions and purchases of non-fleet property, plant and equipment subject to a maximum limitation of $2,000,000; (ii) expenditures resulting from the transfer of units from inventory to the lease fleet, subject to a maximum limitation of $4,000,000; and (iii)expenditures related to the purchase of storage containers, steel offices and other similar units into inventory; and (B) will be reduced by (iv) the net book value of any unit sales from the lease fleet; and (v) the cost basis of any unit sales from

inventory of lease fleet units or any item in inventory of a nature similar to the products in lease fleet (but not of other property, plant and equipment).

“ Cash and Cash Equivalents ” means all cash on hand in the Target’s or any of its Subsidiaries' bank, lock box or other accounts and all marketable securities (but excluding restricted cash), calculated in each case in accordance with GAAP applied on a basis consistent with the preparation of the Balance Sheet.

“ Certificate of Designation ” means the Certificate of Designation of Parent’s Series A Convertible Redeemable Participating Preferred Stock, in the form of Exhibit D hereto.

“ Certificate of Incorporation Amendment ” means the Amendment to the Amended and Restated Certificate of Incorporation of Parent in the form attached hereto as Exhibit E .

“ Code ” means the United States Internal Revenue Code of 1986, as amended, and the rules and regulations promulgated thereunder.

“ Contract ” means any note, bond, mortgage, indenture, guarantee, license, franchise, permit, agreement, understanding, arrangement, contract, commitment, lease, franchise agreement or other legally binding instrument or obligation and all amendments thereto.

“ Cumulative Adjusted Capex Budget Amount ” means, for any period, the amount shown on, or derived from, the CapEx Budget for the period commencing on January 1, 2008 and ending on the date of such determination; provided , that in the event the Closing Date is a date other than the last day of a calendar month, the Cumulative Adjusted Capex Budget Amount as of the Closing Date shall equal the sum of (i) the Cumulative Adjusted Capex Budget Amount shown on, or derived from, the CapEx Budget for the period commencing on January 1, 2008 and ending on last day of the month immediately preceding the month in which the Closing occurs (the “ Prior Month Cumulative Adjusted Capex Budget Amount ”), plus (ii) the product of (a) the excess of the Cumulative Adjusted CapEx Budget Amount shown on, or derived from, the CapEx Budget for the period commencing on January 1, 2008 and ending on last day of the month in which the Closing occurs (the “ Closing Month Cumulative Adjusted CapEx Budget Amount ”) over the Prior Month Cumulative Adjusted Capex Budget Amount and (b) the fraction derived by dividing (x) the total number of days from and including the first day of the month in which the Closing occurs to and including the Closing Date by (y) the total number of days in the month in which the Closing occurs.

“ Draft Financial Statements ” means the draft unaudited consolidated balance sheet of Mobile Services Group Inc. and its consolidated Subsidiaries as at December 31, 2007 and the related draft unaudited consolidated statements of operations and cash flows for the period then ended.

“ Environmental Law ” means any Law, Order or other requirement of law, including any principle of common law, relating to the protection of human health or the environment, including the regulation of the manufacture, use, transport, treatment, storage, disposal, release or threatened release of petroleum products, asbestos, urea formaldehyde

insulation, polychlorinated biphenyls or any substance listed, classified or regulated as hazardous or toxic, or any similar term, under such Environmental Law.

“ ERA ” means the United Kingdom’s Employment Rights Act 1996.

“ Escrow Agent ” means the Person selected by Parent and the Target Stockholder Representative to serve as the escrow agent under the Escrow Agreement.

“ Escrow Agreement ” means the Escrow Agreement, to be dated as of the Closing Date, by and among Parent, the Target Stockholder Representative and the Escrow Agent, substantially in the form attached hereto as Exhibit B .

“ Escrow Amount ” means $15,000,000.

“ Escrowed Cash ” means an amount in cash which is equal to the Estimated Merger Consideration minus $154,000,000 but in no event shall the Escrowed Cash exceed $15,000,000; provided , that if the Estimated Merger Consideration is equal to or less than $154,000,000, than the Escrowed Cash shall be $0.00.

“ Escrowed Parent Preferred Stock ” means a number of shares of Parent Preferred Stock equal to the Escrowed Parent Preferred Stock Value divided by $18.00 (as adjusted for stock splits and combinations).

“ Escrowed Parent Preferred Stock Value ” means the Escrow Amount less the Escrowed Cash.

“ Estimated Merger Consideration ” means an amount equal to the sum of (i) $701,500,000, (ii) minus the Target Net Debt, (iii) plus or minus , as the case may be, the Estimated Net Debt Adjustment, (iv) plus or minus , as the case may be, the Estimated Working Capital Adjustment, (v) plus or minus , as the case may be, the Estimated CapEx Expenditures Adjustment, (vi) minus the Estimated Transaction Expenses, and (vii) plus the Acquisition Amount.

“ Exchange Act” means the United States Securities and Exchange Act of 1934, as amended.

“ Fair Market Value ” means, for purposes of valuing the Parent Preferred Stock for purposes of the indemnification provisions of this Agreement, the as-converted value of Parent Preferred Stock based on the average of the closing prices of the Parent Common Stock on the NASDAQ reporting system or on the principal exchange on which the Parent Common Stock is traded (as reported in the Wall Street Journal) over a period of thirty (30) days consisting of the day the final amount of indemnifiable Losses has been agreed to or otherwise determined pursuant to the provisions of this Agreement and the twenty nine (29) consecutive trading days prior to such day the final amount of indemnifiable Losses has been agreed or otherwise determined pursuant to the provisions of this Agreement; provided , that if the Parent Common Stock is not traded on any exchange or the over-the-counter market, then “Market Price” shall be determined in good faith by the Surviving Corporation and the Target Stockholder Representative.

“ Governmental Entity ” means any instrumentality, subdivision, court, administrative agency, commission, official or other authority of the United States or any other country or any state, province, prefect, municipality, locality or other government or political subdivision thereof, or any quasi-governmental or private body exercising any regulatory, taxing, importing or other governmental or quasi-governmental authority.

“ Indebtedness ” means, with respect to any Person, (without duplication) such Person’s and its Subsidiaries’ (i) indebtedness for borrowed money or indebtedness issued or incurred in substitution or exchange for indebtedness for borrowed money and all amounts owing as deferred purchase price for property or services; (ii) all seller notes, acquisition holdbacks, “earn-out” payments and cash deposits provided by the selling party in connection with acquisitions by such Person or any of its Subsidiaries completed prior to date of this Agreement (but only to the extent that such deposits are held or controlled by such Person or any of its Subsidiaries); (iii) indebtedness evidenced by any note, bond, debenture, mortgage or other debt instrument or debt security; (iv) commitments or obligations by which such Person assures a creditor against loss including contingent reimbursement obligations with respect to letters of credit (excluding stand-by letters of credit supporting workers’ compensation and self-insurance obligations of such Person and its Subsidiaries not to exceed an amount of $7,000,000); (v) indebtedness secured by a Lien on assets or properties of such Person; (vi) obligations under any interest rate, currency or other hedging agreement; (vii) capitalized lease obligations; (viii) accrued interest, (ix) obligations created or arising under any conditional sale or other title retention agreement not entered into in the ordinary course of business consistent with past practice, or (x) any prepayment penalties or premiums and any breakage costs incurred in connection with the payment of Indebtedness prior to the stated maturity thereof, but only to the extent that such indebtedness is being repaid in connection with the Merger. For the avoidance of doubt, “Indebtedness” does not include customer deposits, accounts payable, purchase commitments for capital expenditures, or other items included in the calculation of Net Working Capital. For illustrative purposes, attached as Exhibit F hereto is a list of Indebtedness of Target and its Subsidiaries as of December 31, 2007.

“ Intellectual Property ” means any of the following: (i) U.S. and non-U.S. patents, and applications for either; (ii) registered and unregistered trademarks, service marks, trade dress, corporate and business names and other indicia of origin, and pending applications for the same, including intent-to-use registrations or similar reservations of marks; (iii) registered and unregistered copyrights and applications for registration of either; and (iv) Trade Secrets.

“ Knowledge ” or any similar phrase, with respect to Target, means the actual knowledge of the following persons: Douglas Waugaman, Jerry Vaughn, Allan Villegas, William Armstead, Jody Miller and Ron Halchishak, and, with respect to Parent, means the actual knowledge of the following persons: Steve Bunger, Larry Trachtenberg and Deborah Keeley.

“ Law ” means any statute, law, common law, order, ordinance, rule or regulation of any Governmental Entity.

“ Lehman ” means Lehman Brothers Inc.

“ Lenders ” means Deutsche Bank Securities Inc., Deutsche Bank AG New York Branch, Banc of America Securities LLC, J.P. Morgan Securities Inc. and JPMorgan Chase Bank, N.A., including the syndicate of banks, financial institutions and other entities providing debt financing to Parent pursuant to the Debt Commitment Letter, or any such other Person providing alternative financing pursuant to Section 7.2 hereof.

“ Liabilities ” means liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or contingent, accrued or unaccrued, matured or unmatured or otherwise.

“ Lien ” means liens, security interests, options, pre-emption rights, rights of first refusal, easements, mortgages, charges, pledges, debentures, hypothecation, deeds of trust, rights of way, restrictions on the use of real property, encroachments, or any other encumbrances.

“ Material Adverse Effect ” means, with respect to any Person, any event, circumstance, fact, change or effect that, individually or in the aggregate, is or would be reasonably expected to be materially adverse (a) to the business, assets, liabilities, results of operation or financial condition of such Person and its Subsidiaries taken as a whole, other than any such event, circumstance, fact, change or effect resulting from (i) changes in general political, economic, financial, banking, capital market or industry-wide conditions, other than any changes that have a disproportionately negative effect on such Person and its Subsidiaries (taken as a whole), as compared to other companies in the industries in which such Person or its Subsidiaries operate, (ii) the announcement or other disclosure of this Agreement or the transactions contemplated hereby, (iii) changes in Laws or GAAP, other than any such change that has a disproportionately negative effect on such Person and its Subsidiaries (taken as a whole), as compared to other companies in the industries in which such Person or its Subsidiaries operate, (iv) acts of war (whether or not declared), political unrest or terrorism or escalation of hostilities, other than any such acts or escalations that have a disproportionately negative effect on such Person and its Subsidiaries (taken as a whole), as compared to other companies in the industries in which such Person or its Subsidiaries operate, or (v) any action taken by a party hereto as expressly required by this Agreement, or (b) on the ability (including any material delay) of such Person to perform its respective material obligations hereunder.

“ Mezzanine Notes ” means the notes issued pursuant to the Note Purchase Agreement, dated as of August 1, 2006, by and among Target, as issuer, and WCAS Capital Partners IV, L.P. and Foxkirk, LLC, as purchasers.

“ Net Debt of Target ” means the consolidated Indebtedness of Target and its Subsidiaries minus the consolidated Cash and Cash Equivalents of Target and its Subsidiaries.

“ Order ” means any judgment, order, injunction, decree, writ, permit or license of any Governmental Entity or any arbitrator.

“ Organizational Documents ” means, with respect to any entity, the certificate of incorporation, the articles of incorporation, by-laws, articles of organization, certificate of limited partnership, certificate of formation, partnership agreement, limited liability company

agreement, formation agreement, joint venture agreement or other similar organizational documents of such entity (in each case, as amended through the date of this Agreement).

“ Parent Common Stock ” means the shares of common stock of Parent, par value $0.01 per share.

“ Parent Credit Agreement ” means the Second Amended and Restated Loan and Security Agreement, dated as of February 17, 2006, by and among the financial institutions parties thereto, Deutsche Bank AG, New York Branch, as Agent, JPMorgan Chase Bank, N.A. and National City Bank, as Co-Documentation Agents, and Bank of America, N.A., as Syndication Agent.

“ Parent Indenture ” means that certain indenture by and among Parent, as issuer, Law Debenture Trust Company of New York as trustee, Deutsche Bank Trust Company Americas, as paying agent and registrar, and the guarantors named therein, dated May 7, 2007.

“ Parent SEC Filings ” means, collectively, the Form 10-K for the fiscal year ended December 31, 2006 and the Forms 10-Q for the quarterly periods ended March 31, 2007, June 30, 2007 and September 30, 2007, each as filed by Parent with the SEC.

“ Parent Stockholder Approval ” means, at the meeting of the Stockholders of Parent duly called and held for such purpose, the approval of this Agreement, the Merger and the issuance of the Parent Preferred Stock to Target Stockholders in connection therewith by the affirmative vote of the holders of a majority of the outstanding shares of Parent Common Stock.

“ Permitted Liens ” means, with respect to any Person, (i) Liens reflected in the unaudited balance sheet of such Person as at September 30, 2007, (ii) Liens consisting of zoning or planning restrictions or regulations, easements, Permits, restrictive covenants, encroachments and other restrictions or limitations on the use of real property or irregularities in, or exceptions to, title thereto which, individually or in the aggregate, do not materially detract from the value of, or impair the use of, such real property by such Person or its Subsidiaries, (iii) statutory Liens of landlords and workers’, carriers’, materialmens’, suppliers’ and mechanics’ Liens and similar Liens for labor, materials or supplies provided with respect to such real property incurred in the ordinary course of business, which amounts related thereto are not yet due and payable or for which appropriate reserves have been established in accordance with GAAP, and (iv) Liens for Taxes not yet due and payable or being contested in good faith and by appropriate proceedings.

“ Person ” means and includes an individual, a partnership, a joint venture, a corporation, a limited liability company, a limited liability partnership, a trust, an incorporated organization or any other entity or organization, including a Governmental Entity.

“ Pro Rata Portion ” means, with respect to each Target Stockholder, the percentage set forth opposite each such Target Stockholder’s name on Section 1.1(a) of the Target Disclosure Letter under the column “Pro Rata Portion”.

“ Qualified Representations and Warranties ” means those representations and warranties set forth in (A) Sections 4.7(b) and (c) (Financial Statements), clauses (x), (xi) and (xv) of Section 4.13 (Material Contracts), the first sentence of Section 4.16 (Insurance), and the

first sentence of Section 4.25 (Absence of Changes) and (B) Section 5.7 (Financial Statements; No Material Adverse Effect).

“ Remaining Indebtedness ” means, collectively, the Indebtedness set forth on Section 1.1(b) to the Target Disclosure Letter.

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

“ Securities Act ” means the United States Securities Act of 1933, as amended.

“ Senior Notes ” means the 9.75% Senior Notes due 2015 issued pursuant to the Target Indenture.

“ Significant Subsidiary ” has the meaning set forth in Regulation S-X under the Securities Act, except that for purposes of this Agreement all references to “10 percent” therein shall be replaced with “5 percent”.

“ Specified Option ” means any option subject to (i) the Nonqualified Stock Option Agreement made and entered into, as of August 1, 2006, by and between Target and William Armstead; (ii) the Nonqualified Stock Option Agreement made and entered into, as of August 1, 2006, by and between Target and Jeffrey Kluckman; (iii) the Nonqualified Stock Option Agreement made and entered into, as of August 1, 2006, by and between Target and Jody Miller; and (iv) the Nonqualified Stock Option Agreement made and entered into, as of August 1, 2006, by and between Target and Allan Villegas.

“ Sponsor Management Agreement ” means that certain management agreement between WCAS Management Corporation, Mobile Services Group, Inc. and Target dated August 1, 2006.

“ Sponsor Merger Agreement ” means that certain agreement and plan of merger by and among Target, MSG WC Acquisition Corp., Mobile Services Group, Inc. and Windward Capital Management, LLC as Target Stockholder Representative, dated May 24, 2006.

“ Sponsor Stockholders Agreement ” means that certain stockholders’ agreement by and among Target, WCAS Stockholders, de Nicola Holdings, L.P. and other co-investors and additional stockholders named therein, dated August 1, 2006.

“ Subsidiary ” or “ Subsidiaries ” means, with respect to any Person, (i) any corporation more than 50% of whose stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting power by reason of the happening of any contingency) is owned by such Person directly or indirectly through one or more Subsidiaries of such Person and (ii) any partnership, association, joint venture or other entity in which such Person directly or indirectly through one or more Subsidiaries of such Person has more than a 50% equity interest.

“ Target Common Stock ” means the shares of common stock, par value $0.01 per share, of Target.

“ Target Credit Agreements ” means the U.S. Credit Agreement and the U.K. Credit Agreement.

“ Target Indenture ” means that certain indenture by and among Mobile Services Group, Inc. and Mobile Storage Group, Inc., as issuers, Wells Fargo Bank, N.A., as trustee, and the subsidiary guarantors named therein, dated August 1, 2006.

“ Target Net Debt ” means $535,000,000.

“ Target Option Plans ” means the MSG WC Holdings Corp. 2006 Stock Option Plan, the 2006 Stock Incentive Plan and the MSG WC Holdings Corp. 2006 Employee Stock Option Plan, in each case adopted by the board of directors of Target on August 1, 2006.

“ Target Property ” means any real property and improvements owned (directly, indirectly, or beneficially), leased, used, operated or occupied by Target or its Subsidiaries.

“ Target Stockholders ” means all the stockholders of Target at Closing.

“ Target Working Capital ” means $0.00.

“ Tax ” or “ Taxes ” means all taxes, assessments, charges, duties, fees, levies or other similar governmental charges, including all United States, federal, state or local, non-United States and other income, franchise, profits, gross receipts, capital gains, capital stock, transfer, sales, use, occupation, property, excise, severance, windfall profits, stamp, license, payroll, social security, withholding and other taxes, assessments, charges, duties, fees, levies or other similar governmental charges of any kind whatsoever (whether payable directly or by withholding and whether or not requiring the filing of a Tax Return (as defined below)), all estimated taxes, deficiency assessments, additions to tax, penalties and interest, and shall include any liability for such amounts as a result either of being a member of a combined, consolidated, unitary or affiliated group or of a contractual obligation to indemnify any Person or other entity.

“ Trade Secrets ” means any trade secrets or other proprietary and confidential information including unpatented inventions, invention disclosures, technical data, customer lists, know-how, formulae, methods (whether or not patentable), designs, processes, procedures, source code, object code, and data collections.

“ Transaction Expenses ” means, without duplication, the collective amount payable by Target or any of its Subsidiaries for all out-of-pocket costs and expenses incurred by Target or any of its Subsidiaries or on behalf of the Target Stockholders in connection with the sale of Target or any of its Subsidiaries (whether pursuant to this Agreement or any alternative transaction Target or the Target Stockholders have considered or any auction process related thereto) that have not been paid prior to the Effective Time, (1) including (A) all brokers’ or finders’ fees, (B) fees and expenses of counsel, advisors, consultants, investment bankers, accountants, and auditors and experts, (C) consent payments required to be made in connection with obtaining the applicable landlord consents in connection with the transactions contemplated hereby or consents under capitalized lease obligations, and (D) all sale, “stay-around,” retention, or similar bonuses or payments to current or former directors, officers, employees and

consultants paid as a result of or in connection with the transactions contemplated hereby other than payments under the Transaction Retention Program, but (2) excluding all Transfer Taxes.

“ Transaction Retention Program ” means a transaction retention program as mutually agreed to by Parent and Target, as annexed to Section 1.1(c) of the Target Disclosure Letter, to provide transaction bonuses to employees of Target as mutually chosen, and in amounts mutually agreed, by Parent and Target, which shall not exceed $3,352,500 in the aggregate.

“ Transfer Regulations ” means the United Kingdom’s Transfer of Undertakings (Protection of Employment) Regulations 2006 or any applicable law implementing the provisions of the Council Directive 2001/23/EC dated 12 March 2001 and the United Kingdom’s Transfer of Undertakings (Protection of Employment) Regulations 1981 or any applicable law implementing the provisions of the Council Directive 77/187/EEC dated 14 February 1977.

“ Transfer Taxes ” means all stamp, transfer, recording, stock transfer, documentary, sales and use, value added, registration, real property transfer and any other similar taxes and fees (including any penalties and interest) incurred in connection with this Agreement or any other transaction contemplated hereby.

“ TULRCA ” means the United Kingdom’s Trade Unions and Labour Relations (Consolidation) Act 1992.

“ U.K. Credit Agreement ” means the U.K. Credit Agreement, dated as of August 1, 2006, by and among the financial institutions parties thereto, The CIT Group/Business Credit, Inc., as administrative agent, Mobile Storage Group, Inc., Mobile Services Group, Inc., MSG WC Intermediary Co., MSC WC Holdings Corp., The CIT Group/Business Credit, Inc., as the fronting lender of the U.K. Revolving Participants (as defined therein) and as security trustee and Ravenstock MSG Limited.

“ U.S. Credit Agreement ” means the Credit Agreement, dated as of August 1, 2006, among the financial institutions parties from time to time parties thereto, The CIT Group/Business Credit, Inc., as administrative agent, Mobile Storage Group, Inc., Mobile Services Group, Inc., MSG WC Intermediary Co. and Target.

“ VAT ” means the Tax imposed by the United Kingdom Value Added Tax Act 1994 and legislation supplemental thereto.

“ WCAS ” means Welsh, Carson, Anderson & Stowe X, L.P.

“ WCAS Stockholders ” means, collectively, WCAS, WCAS Capital Partners IV, L.P. and WCAS Management Corporation.

“ Working Capital ” means the “Adjusted Net Working Capital at Closing” calculated in accordance with the methodology and definitions set forth on Section 1.1(d) of the Target Disclosure Letter.

“ Working Capital Lower Limit ” means $(1,500,000.00).

“ Working Capital Upper Limit ” means $1,500,000.00.

“ $ ” means United States dollars.

§1.2 Other Defined Terms . In addition to the terms defined in Section 1.1, additional defined terms used herein shall have the respective meanings assigned thereto in the Sections indicated on Annex A .

§1.3 Construction . In this Agreement, unless the context otherwise requires:

(a) any reference in this Agreement to “writing” or comparable expressions includes a reference to facsimile transmission or comparable means of communication;

(b) words expressed in the singular number shall include the plural and vice versa, words expressed in the masculine shall include the feminine and neuter gender and vice versa;

(c) references to Articles, Sections, Exhibits and Recitals are references to articles, sections, exhibits, schedules and recitals of this Agreement;

(d) reference to “day” or “days” are to calendar days;

(e) this “Agreement” or any other agreement or document shall be construed as a reference to this Agreement or, as the case may be, such other agreement or document as the same may have been, or may from time to time be, amended, varied, novated or supplemented; and

(f) “include,” “includes,” and “including” are deemed to be followed by “without limitation” whether or not they are in fact followed by such words or words of similar import.

ARTICLE II

THE MERGER AND SUBSEQUENT MERGERS

§2.1 The Merger . (a) Upon the terms and subject to the conditions of this Agreement, at the Closing, Parent, Merger Sub and Target shall duly prepare, execute and acknowledge a certificate of merger (the “ Certificate of Merger ”) in accordance with Section 251 of the DGCL that shall be filed with the Secretary of State of the State of Delaware on the Closing Date, in accordance with the provisions of the DGCL. The Merger shall become effective upon the acceptance of the filing of the Certificate of Merger by the Secretary of State of the State of Delaware (or at such later time set forth in the Certificate of Merger as shall be agreed to by Parent, Merger Sub and Target). The date and time when the Merger shall become effective is hereinafter referred to as the “ Effective Time ”.

(b) On the terms and subject to the conditions set forth in this Agreement and in accordance with the DGCL, at the Effective Time, Merger Sub shall be merged with and into Target, and the separate corporate existence of Merger Sub shall cease, and Target shall continue

as the surviving corporation under the laws of the State of Delaware (the “ Surviving Corporation ”).

§2.2 Certificate of Incorporation of the Surviving Corporation . At the Effective Time and without any further action on the part of Target or Parent the certificate of incorporation of Target, as in effect immediately prior to the Effective Time, shall be the certificate of incorporation of the Surviving Corporation as of the Effective Time, until duly amended in accordance with applicable law.

§2.3 By-laws of the Surviving Corporation . At the Effective Time and without any further action on the part of Target or Parent, the by-laws of Target, as in effect immediately prior to the Effective Time, shall be the by-laws of the Surviving Corporation as of the Effective Time, until duly amended in accordance with applicable law.

§2.4 Directors and Officers of the Surviving Corporation . At the Effective Time and subject to Section 7.3, the directors of Target immediately prior to the Effective Time shall be the directors of the Surviving Corporation, each of such directors to hold office, subject to the applicable provisions of the certificate of incorporation and by-laws of the Surviving Corporation. At the Effective Time, the officers of Target immediately prior to the Effective Time shall be officers of the Surviving Corporation, each of such officers to hold office, subject to the applicable provisions of the certificate of incorporation and by-laws of the Surviving Corporation.

§2.5 The Subsequent Mergers . (a) Upon the terms and subject to the conditions of this Agreement, on the Closing Date and immediately following the Merger, Parent shall cause the Surviving Corporation and each of MSG WC Intermediary Co. and Mobile Services Group, Inc. to duly prepare, execute and acknowledge certain certificates of merger in accordance with Section 253 of the DGCL that shall be filed with the Secretary of State of the State of Delaware immediately following the Effective Time, in accordance with the provisions of the DGCL, so that the following mergers (collectively, the “ Subsequent Mergers ”) occur in the order described below:

(i) The Surviving Corporation shall be merged with and into Parent, and the separate corporate existence of the Surviving Corporation shall cease, and Parent shall continue as the surviving corporation under the laws of the State of Delaware.

(ii) MSG WC Intermediary Co. shall be merged with and into Parent, and the separate corporate existence of MSG WC Intermediary Co. shall cease, and Parent shall continue as the surviving corporation under the laws of the State of Delaware.

(iii) Mobile Services Group, Inc. shall be merged with and into Parent, and the separate corporate existence of Mobile Services Group, Inc. shall cease, and Parent shall continue as the surviving corporation under the laws of the State of Delaware.

(b) Each Subsequent Merger shall become effective upon the acceptance of the filing of the applicable certificate of merger by the Secretary of State of the State of Delaware in the order described above.

(c) From and after the effective time of each Subsequent Merger, such Subsequent Merger shall have the effects set forth in Section 259(a) of the DGCL.

ARTICLE III

EFFECT OF THE MERGER ON CAPITAL STOCK

§3.1 Conversion of Stock . At the Effective Time, by virtue of the Merger and without any action on the part of any party, each share of Merger Sub’s common stock issued and outstanding immediately prior to the Effective Time will be converted into and exchanged for one validly issued, fully paid, and nonassessable share of the Surviving Corporation’s common stock. Each stock certificate of Merger Sub evidencing ownership of any such shares will from and after the Effective Time evidence ownership of shares of the Surviving Corporation’s common stock, so that, after the Effective Time, Parent shall be the holder of all of the issued and outstanding shares of the Surviving Corporation’s common stock. Each share of Target Common Stock issued and outstanding immediately prior to the Effective Time (other than any shares of Target Common Stock that are held in the treasury of Target or held by Parent or any of its Subsidiaries, all of which shall cease to be outstanding and be canceled and none of which shall receive any payment with respect thereto) and all rights in respect thereof shall, by virtue of the Merger and without any action on the part of the holder thereof, forthwith cease to exist and be converted into and represent the right to receive an amount, in cash and shares of Parent Preferred Stock, equal to (x) $701,500,000, minus Actual Net Debt, plus or minus , as the case may be, the Actual Closing Working Capital Adjustment, plus or minus as the case may be, the Actual Closing CapEx Adjustment, minus the amount of Actual Closing Transaction Expenses (collectively, the “ Merger Consideration ”) divided by (y) the number of shares of Target Common Stock issued and outstanding immediately prior to the Effective Time (other than any shares of Target Common Stock which are held in the treasury of Target or held by Parent or any of its Subsidiaries, all of which shall cease to be outstanding and be canceled and none of which shall receive any payment with respect thereto).

§3.2 Effect on Options . Immediately prior to the Effective Time, all options issued under the Target Option Plans (other than the Specified Options) that are outstanding on such date will be cancelled and will cease to exist, and the holder of such option will cease to have any rights with respect thereto, except the right to receive a pro rata portion of the Merger Consideration. For the avoidance of the doubt, for purposes of this Agreement, the Pro Rata Portion of the Target Stockholders shall be calculated as if the Specified Options were exercised for cash immediately prior to the Effective Time such that shares of Target Common Stock issuable upon the exercise thereof shall be deemed issued and outstanding as of the Effective Time and the Target Stockholders and the Specified Option holders shall receive a pro rata portion of the Merger Consideration; provided , that in determining the Pro Rata Portion of any Specified Option holder the aggregate exercise price for all such options shall be taken into consideration.

§3.3 Delivery of Funds; Surrender of Certificates; Payments . (a) At least three (3) Business Days, but not more than five (5) Business Days, prior to the Closing Date, Target shall deliver to Parent a statement (the “ Closing Estimate Statement ”) setting forth Target’s good faith estimate of (i) the amount of Net Debt of Target as of the Closing Date (the “ Estimated Net Debt ”), (ii) the amount, if any, by which the Estimated Net Debt is greater or less than the Target Net Debt (the “ Estimated Net Debt Adjustment ”), (iii) the Working Capital as of the Closing Date (the “ Estimated Working Capital ”), (iv) the amount, if any, by which the Estimated Working Capital exceeds the Working Capital Upper Limit or is less than the Working Capital Lower Limit, as the case may be (the “ Estimated Working Capital Adjustment ,” which, if the Estimated Working Capital is less than the Working Capital Lower Limit, the Estimated Working Capital Adjustment shall be deemed a negative amount, and if Estimated Working Capital is between the Working Capital Upper Limit and the Working Capital Lower Limit, the Estimated Working Capital Adjustment shall be $0.00), (v) its consolidated Capital Expenditures for the period commencing on January 1, 2008 and ending on the Closing Date (the “ Estimated CapEx Expenditures ”), (vi) the amount, if any, by which the Estimated CapEx Expenditures is greater or less than the Cumulative Adjusted Capex Budget Amount for the period commencing on January 1, 2008 and ending on the Closing Date (the “ Estimated CapEx Expenditures Adjustment ”), (vii) the amount of Transaction Expenses as of the Closing Date (the “ Estimated Transaction Expenses ”), (viii) the total number of outstanding shares of Target Common Stock, and (ix) Estimated Merger Consideration, which shall quantify in reasonable detail the foregoing amounts and calculations, and in each case shall be calculated in accordance with Section 1.1 (d) of the Target Disclosure Letter.

(b) On the Closing Date (or at such later date when a Target Stockholder surrenders such Target Stockholder’s Certificate(s)), upon surrender by a Target Stockholder to Parent of the certificate(s) representing the shares of Target Common Stock held by such Target Stockholder immediately prior to the Effective Time (each, a “ Certificate ”) and delivery of a letter of transmittal in form and substance reasonably satisfactory to Parent and the Target Stockholders Representative from each Target Stockholder who did not sign the Joinder Agreement containing the appropriate provisions of the Joinder Agreement, Parent shall pay to the Target Stockholders the Estimated Merger Consideration as follows:

(i) if the Estimated Merger Consideration is equal to or less than $154,000,000, then each such Target Stockholder who has surrendered a Certificate shall receive a number of shares of Parent Preferred Stock equal to (w) the Estimated Merger Consideration, (x) minus the Escrow Amount, (y) divided by $18.00 (as adjusted for stock splits and combinations), and (z) multiplied by the Pro Rata Portion of such Target Stockholder (rounded to the nearest whole share); or

(ii) if the Estimated Merger Consideration is greater than $154,000,000, then each such Target Stockholder who has surrendered a Certificate shall receive (x) a number of shares of Parent Preferred Stock equal to (I) $154,000,000 minus the Escrowed Parent Preferred Stock Value, (II) divided by $18.00 (as adjusted for stock splits and combinations), and (III) multiplied by the Pro Rata Portion of such Target Stockholder (rounded to the nearest whole share), and (y) an amount in cash equal to (I) the Estimated Merger Consideration minus $154,000,000 minus the Escrowed Cash, and (II) multiplied by the Pro Rata Portion of such Target Stockholder.

(c) Until so surrendered, each Certificate shall be deemed, for all corporate purposes, to evidence only the right to receive upon such surrender the Merger Consideration deliverable in respect thereof to which such Person is entitled pursuant to this Article III. No interest shall be paid or accrued in respect of such cash payments. If the Merger Consideration (or any portion thereof) is to be delivered to a Person other than the Person in whose name the Certificates surrendered in exchange therefor are registered, it shall be a condition to the payment of such portion of the Merger Consideration that the Certificates so surrendered shall be properly endorsed or accompanied by appropriate stock powers and otherwise in proper form for transfer and that the Person requesting such transfer pay to the Surviving Corporation any Transfer Taxes payable by reason of the foregoing or establish to the satisfaction of the Surviving Corporation that such Transfer Taxes have been paid or are not required to be paid. In the event any Certificate shall have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the Person claiming such Certificate to be lost, stolen or destroyed, the Surviving Corporation will issue in exchange for such lost, stolen or destroyed Certificate the portion of the Merger Consideration deliverable in respect thereof as determined in accordance with this Article III; provided , that the Person to whom such portion of the Merger Consideration is paid shall, as a condition precedent to the payment thereof, indemnify the Surviving Corporation in a manner reasonably satisfactory to them against any claim that may be made against the Surviving Corporation with respect to the Certificate claimed to have been lost, stolen or destroyed.

(d) At the Closing, the Escrowed Cash and Escrowed Parent Preferred Stock shall be deposited with the Escrow Agent to be held by the Escrow Agent in accordance with the terms of the Escrow Agreement.

(e) At the Closing, Parent shall pay or purchase, on behalf of Target and its Subsidiaries, to or from the holders of the Indebtedness of Target included in the calculation of Estimated Net Debt (including the Mezzanine Notes and the Target Credit Agreements), other than to the holders of the Remaining Indebtedness, reflected in the Payoff Letters an amount sufficient to repay all such Indebtedness, with the result that immediately following the Closing there will be no further monetary obligations of the Surviving Corporation or any of its Subsidiaries with respect to such Indebtedness.

(f) At the Closing, Parent shall pay, on behalf of Target and its Subsidiaries, the Estimated Transaction Expenses as set forth in the Closing Estimate Statement, by wire transfer of immediately available funds pursuant to written instructions provided to Parent by Target concurrently with the delivery of the Closing Estimate Statement.

§3.4 Determination of Merger Consideration Adjustment . (a ) Promptly after the Closing Date, and in any event not later than ninety (90) days following the Closing Date, the Surviving Corporation shall prepare and deliver to the Target Stockholder Representative a statement (the “ Closing Statement ”) setting forth the Surviving Corporation’s good faith calculation of (i) the amount of Net Debt of Target as of the Closing Date (the “ Closing Net Debt ”), (ii) the amount, if any, by which the Closing Net Debt is greater or less than the Target Net Debt (the “ Closing Net Debt Adjustment ”), (iii) the Working Capital as of the Closing Date (the “ Closing Working Capital ”), (iv) the amount, if any, by which the Closing Working Capital exceeds the Working Capital Upper Limit or is less than the Working Capital Lower Limit, as

the case may be (the “ Closing Working Capital Adjustment ,” which, if the Closing Working Capital is less than the Working Capital Lower Limit, the Closing Working Capital Adjustment shall be deemed a negative amount, and if Closing Working Capital is between the Working Capital Upper Limit and the Working Capital Lower Limit, the Closing Working Capital Adjustment shall be $0.00), (v) the consolidated Capital Expenditures for the period commencing on January 1, 2008 and ending on the Closing Date (the “ Closing CapEx Expenditures ”), (vi) the amount, if any, by which the Closing CapEx Expenditures is greater or less than the Cumulative Adjusted Capex Budget Amount for the period commencing on January 1, 2008 and ending on the Closing Date (the “ Closing CapEx Expenditures Adjustment ”), (vii) the Transaction Expenses as of the Closing Date (the “ Closing Transaction Expenses ”), (viii) the total number of outstanding shares of Target Common Stock, and (ix) the Estimated Merger Consideration based on foregoing amounts (the “ Closing Merger Consideration ”), which shall quantify in reasonable detail the foregoing amounts and calculations, and in each case shall be calculated in accordance with Section 1.1(d) of the Target Disclosure Letter. Upon delivery of the Closing Statement by the Surviving Corporation, the Surviving Corporation shall provide the Target Stockholder Representative with reasonable access to the books and records of the Surviving Corporation and Target, as the case may be, and any other document or information reasonably requested by the Target Stockholder Representative, in order to allow the Target Stockholder Representative to verify the accuracy of determination by the Surviving Corporation of the Closing Merger Consideration.

(b) In the event that the Target Stockholder Representative does not object to any amounts set forth on the Closing Statement by written notice of objection (the “ Notice of Objection ”) delivered to the Surviving Corporation within fifteen (15) Business Days after the Target Stockholder Representative’s receipt of the Closing Statement, such Notice of Objection to set forth in reasonable detail the Target Stockholder Representative’s alternative calculations of (i) the amount of Closing Net Debt, (ii) the Closing Net Debt Adjustment, (iii) the Closing Working Capital, (iv) the Closing Working Capital Adjustment, (v) the Closing CapEx Expenditures, (vi) the Closing CapEx Expenditures Adjustment, (vii) the amount of Closing Transaction Expenses, (viii) the total number of outstanding shares of Target Common Stock, or (ix) the Closing Merger Consideration based on such amounts, the Closing Merger Consideration shall be deemed final and binding and shall be the Merger Consideration for all purposes of this Agreement.

(c) If the Target Stockholder Representative delivers a Notice of Objection to the Surviving Corporation within the fifteen (15) Business Day period referred to in Section 3.4(b), then (A) any amount included in the Surviving Corporation’s calculation of Closing Merger Consideration that is not in dispute on the date such Notice of Objection is given shall be treated as final and binding and (B) any dispute (all such disputed amounts, the “ Disputed Amounts ”) shall be resolved as follows:

(i) the Target Stockholder Representative and the Surviving Corporation shall promptly endeavor in good faith to resolve the Disputed Amounts listed in the Notice of Objection. In the event that a written agreement determining the Disputed Amounts has not been reached within ten (10) Business Days after the date of receipt by the Surviving Corporation from the Target Stockholder Representative of the Notice of Objection, the

resolution of such Disputed Amounts shall be submitted to PriceWaterhouseCoopers (other than its New York office) (the “ Arbitrator ”);

(ii) the Arbitrator shall conduct its own review and verification of the Closing Statement and shall select either the Target Stockholder Representative’s calculations of the Disputed Amounts or the Surviving Corporation’s calculations of the Disputed Amounts or an amount in between the two;

(iii) the Target Stockholder Representative and the Surviving Corporation shall use all commercially reasonable efforts to cause the Arbitrator to render a decision in accordance with this Section 3.4(c) along with a statement of reasons therefor within thirty (30) days of the submission of the Disputed Amounts, or a reasonable time thereafter, to the Arbitrator. The decision of the Arbitrator shall be final and binding upon each party hereto and the decision of the Arbitrator shall constitute an arbitral award that is final, binding and non-appealable and upon which a judgment may be entered by a court having jurisdiction thereover;

(iv) in the event the Target Stockholder Representative and the Surviving Corporation submit any Disputed Amounts to the Arbitrator for resolution, the Surviving Corporation and the Target Stockholders shall each pay their own costs and expenses incurred under this Section 3.4(c). The Target Stockholders shall be responsible for that fraction of the fees and costs of the Arbitrator equal to (A) the Arbitrator’s final determination with respect to the Disputed Amounts, over (B) the absolute value of the difference between the Target Stockholder Representative’s aggregate position with respect to the Disputed Amounts and the Surviving Corporation’s aggregate position with respect to the Disputed Amounts, and the Surviving Corporation shall be responsible for the remainder of such fees and costs; and

(v) the Arbitrator shall act as an arbitrator to determine, based upon the provisions of this Section 3.4(c), only the Disputed Amounts and the determination of each amount of the Disputed Amounts shall be made in accordance with the procedures set forth in Section 3.4(a) and, in any event shall be no less than the lesser of the amount claimed by either the Surviving Corporation or the Target Stockholder Representative, and shall be no greater than the greater of the amount claimed by either the Surviving Corporation or the Target Stockholder Representative.

(d) Upon the determination, in accordance with Sections 3.4(b) or 3.4(c), of the final calculations of the amounts of (i) Closing Net Debt, (ii) the Closing Net Debt Adjustment, (iii) Closing Working Capital, (iv) the Closing Working Capital Adjustment, (v) Closing CapEx Expenditures, (vi) the Closing CapEx Expenditures Adjustment, (vii) Closing Transaction Expenses, (viii) the total number of outstanding shares of Target Common Stock, and (ix) the Closing Merger Consideration, then, the Closing Merger Consideration shall be recalculated using such finally determined amounts in lieu of the amounts set forth on the Closing Merger Statement and such amounts as so recomputed in accordance with Sections 3.4(b) or 3.4(c) are referred to herein as (I) “ Actual Net Debt ”, (II) the “ Actual Net Debt Adjustment ”, (III) “ Actual Closing Working Capital ”, (IV) the “ Actual Closing Working Capital Adjustment ”, (V) “ Actual Closing CapEx Expenditures ”, (VI) the “ Actual Closing CapEx

Expenditures Adjustment ”, and (VII) “ Actual Closing Transaction Expenses ”, and the determination of the Merger Consideration based on such amounts shall be final and binding and shall be the Merger Consideration for all purposes of this Agreement. If the Merger Consideration is greater than the Estimated Merger Consideration, then the Surviving Corporation shall be obligated to pay to the Target Stockholders in accordance with Section 3.4(e) such deficiency within three (3) Business Days of the determination of the Merger Consideration. If the Merger Consideration as finally determined is less than the Estimated Merger Consideration, then the Target Stockholders shall be obligated to pay the Surviving Corporation such deficiency in accordance with Section 3.4(f) within three (3) Business Days after the determination of the Merger Consideration. The amount payable by the Surviving Corporation or the Target Stockholders pursuant to this Section 3.4(d) is referred to herein as the “ Merger Consideration Adjustment ”.

(e) If the Merger Consideration as finally determined is greater than the Estimated Merger Consideration and:

(i) if the Merger Consideration is less than or equal to $154,000,000, then Parent shall issue to the Target Stockholder Representative (for further distribution to the Target Stockholders based on their respective Pro Rata Portions) a number of shares of Parent Preferred Stock equal to the Merger Consideration Adjustment divided by $18.00 (as adjusted for stock splits and combinations); or

(ii) if the Merger Consideration is greater than $154,000,000, and then if the Estimated Merger Consideration was (x) less than $154,000,000, then Parent will issue to the Target Stockholders a number of shares of Parent Preferred Stock equal to (i) $154,000,000 minus the Estimated Merger Consideration divide d by (ii) $18.00 (as adjusted for stock splits and combinations) and pay to the Target Stockholders an amount in cash equal to the Merger Consideration minus $154,000,000, or (y) greater than $154,000,000, then Parent will pay to the Target Stockholders an amount in cash equal to the Merger Consideration Adjustment.

(f) If the Merger Consideration as finally determined is less than the Estimated Merger Consideration and:

(i) if the Merger Consideration Adjustment exceeds the Escrow Amount, then the Surviving Corporation and the Target Stockholder Representative shall instruct the Escrow Agent to release to the Surviving Corporation the Escrowed Cash, if any, and the Escrowed Parent Preferred Stock, and each Target Stockholder shall be required to, at its option, (A) pay to the Surviving Corporation an amount in cash in immediately available funds equal to its Pro Rata Portion of the excess of the Merger Consideration Adjustment over the Escrow Amount then held by the Escrow Agent or (B) return to the Surviving Corporation a number of shares of Parent Preferred Stock equal to its Pro Rata Portion of the amount by which the Merger Consideration Adjustment exceeds the Escrow Amount then held by the Escrow Agent divided by $18.00 (as adjusted for stock splits and combinations), which shares shall be canceled by the Surviving Corporation and deemed authorized but unissued shares of Parent Preferred Stock; or

(ii) if the Escrow Amount then held by the Escrow Agent equals or exceeds the Merger Consideration Adjustment, then the Surviving Corporation and the Target Stockholder Representative shall instruct the Escrow Agent to release to the Surviving Corporation (A) if the Escrowed Cash then held by the Escrow Agent exceeds the Merger Consideration Adjustment, then an amount in cash equal to the Merger Consideration Adjustment, or (B) if the Merger Consideration Adjustment exceeds the Escrowed Cash then held by the Escrow Agent, then the Escrowed Cash then held by the Escrow Agent plus a number of shares of Parent Preferred Stock equal to the excess of the Merger Consideration Adjustment or the Escrowed Cash then held by the Escrow Agent multiplied by $18.00 (as adjusted for stock splits and combinations) the Merger Consideration Adjustment over the Escrowed Cash.

Notwithstanding the foregoing, in the event that the foregoing provisions of this Section 3.4 require the release of Parent Preferred Stock to Parent, the Stockholders Representative may elect upon the final determination of the Merger Consideration Adjustment to substitute a cash payment in an amount equal to the number of shares of Parent Preferred Stock, or any portion thereof, that would otherwise be released to Parent, multiplied by $18.00 (as adjusted for stock splits and combinations) and upon such payment those shares for which cash was so substituted shall instead be released to the Stockholders Representative.

§3.5 No Further Rights of Transfers . At and after the Effective Time, each Target Stockholder shall cease to have any rights as a stockholder of Target, except as otherwise required by applicable Law and except for the right of each Target Stockholder to surrender his or her Certificate or lost Certificate affidavit in exchange for payment of the applicable merger consideration, and no transfer of Target Common Stock shall be made on the stock transfer books of the Surviving Corporation. At the close of business on the day of the Effective Time, the stock ledger of Target shall be closed.

§3.6 Withholding Rights . Each of Target, Parent, Merger Sub and the Surviving Corporation will be entitled to deduct and withhold from the amounts otherwise payable pursuant to this Agreement to any Person such amounts as it is required to deduct and withhold with respect to the making of such payment under the Code, or any provision of state, local or foreign tax law. To the extent that amounts are so deducted and withheld and properly and timely remitted to the applicable taxing authority, such withheld amounts will be treated for all purposes of this Agreement as having been paid to the Person in respect of which such deduction and withholding was made.

§3.7 Closing . Unless this Agreement shall have been terminated and the transactions contemplated hereby shall have been abandoned, and subject to the satisfaction or waiver of all of the conditions set forth in herein, the closing of the Merger (the “ Closing ”) shall take place at 10:00 A.M. at the offices of White & Case LLP, 1155 Avenue of the Americas, New York, New York 10036-2787, as soon as practicable, but in any event, within three (3) Business Days after the last of the conditions set forth in Article IX is satisfied or waived, other than those conditions that by their nature are to be satisfied at the Closing, but subject to the fulfillment or waiver of those conditions, or at such other date, time or place as the parties hereto shall agree in writing. Such date is herein referred to as the “ Closing Date ”.

§3.8 Further Assurances . At and after the Effective Time, the officers and managers of the Surviving Corporation shall be authorized to execute and deliver, in the name and on behalf of Target or Parent, any deeds, bills of sale, assignments or assurances and to take and do, in the name and on behalf of Target or Parent, any other actions and things to vest, perfect or confirm of record or otherwise in the Surviving Corporation any and all right, title and interest in, to and under any of the rights, properties or assets acquired or to be acquired by the Surviving Corporation as a result of, or in connection with, the Merger. Parent shall, and shall cause the Surviving Corporation, MSG WC Intermediary Co. and Mobile Services Group, Inc. to authorize and approve the Subsequent Mergers and to take all commercially reasonable efforts to do all things necessary and desirable to effectuate the Subsequent Mergers.

§3.9 Target Stockholder Representative . (a ) WCAS has been appointed as and constitutes the “ Target Stockholder Representative ” and as such shall serve as and have all powers as agent and attorney-in-fact of each Target Stockholder, for and on behalf of such Target Stockholders for purposes of this Agreement, including, to give and receive notices and communications; to have the authority to calculate, negotiate and agree to the Merger Consideration (including the components thereof) in accordance with the adjustments procedures set forth in this Agreement; to sign receipts, consents or other documents and to effect the transactions contemplated hereby; to make (or cause to be made) distributions to the Target Stockholders and to take all actions it deems necessary or appropriate for the accomplishment of the foregoing, including retaining any attorneys, accountants or other advisors as the Target Stockholder Representative sees fit. The Target Stockholder Representative may resign such position for any reason upon at least thirty (30) days prior written notice delivered to Parent and the Target Stockholders. In such event, the Target Stockholders who held at least a majority of Target Common Stock as of the Closing shall, by written notice to Parent, appoint a successor Target Stockholder Representative within such thirty (30) day period. Notice or communications to or from the Target Stockholder Representative shall constitute notice to or from the Target Stockholders.

(b) The Target Stockholder Representative shall only be liable for any action taken or not taken as a Target Stockholder Representative solely to the extent such Target Stockholder Representative’s action constitutes gross negligence, fraud or willful misconduct. No bond shall be required of the Target Stockholder Representative, and the Target Stockholder Representative shall not receive compensation for its services. The Target Stockholder Representative shall incur no liability with respect to any action taken or suffered by it in reliance upon any notice, direction, instruction, consent, statement or other document reasonably believed by it to be genuine and to have been signed by the proper person, nor for any other action or inaction, except to the extent caused by its own gross negligence, fraud or willful misconduct.

(c) A decision, act, consent or instruction of the Target Stockholder Representative shall constitute a decision of all Target Stockholders, and shall be final, binding and conclusive upon each of the Target Stockholders, and Parent, Surviving Corporation and Target may rely upon any decision, act, consent or instruction of the Target Stockholder Representative as being the decision, act, consent or instruction of each and all of the Target Stockholders. Parent and Surviving Corporation are relieved from any liability to any Target

Stockholder or any other Person for any acts done by them in accordance with such decision, act, consent or instruction of the Target Stockholder Representative.

(d) The Target Stockholders agree to take any and all action as may be reasonably required by the Target Stockholder Representative (including, the execution of certificates, transfer documents, receipts, instruments, consents or similar documents) to effectuate the purposes of this Agreement.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF TARGET

Except as disclosed in writing in the disclosure letter supplied by Target to Parent, dated as of the date hereof and as may be updated by Target (for informational purposes) pursuant to Section 6.4 (the “ Target Disclosure Letter ”), Target represents and warrants to Parent as follows:

§4.1 Authority and Enforceability . Target has the corporate power and authority to execute and deliver this Agreement and the Ancillary Agreements to be executed and delivered by Target as contemplated hereby. Target has the corporate power and authority to consummate the transactions contemplated hereby and thereby. The execution, delivery and performance of this Agreement, and the Ancillary Agreements executed and delivered by Target as contemplated hereby, and the consummation of the transactions contemplated hereby and thereby, have been duly authorized by Target’s board of directors and by the Target Stockholders and no other corporate or stockholder action on the part of Target or its stockholders is necessary to authorize the execution, delivery and performance of this Agreement and the Ancillary Agreements by Target and the consummation of the transactions contemplated hereby and thereby. This Agreement and the Ancillary Agreements to be executed and delivered by Target as contemplated hereby, when delivered in accordance with the terms hereof and thereof, assuming the due execution and delivery of this Agreement and each other Ancillary Agreement by the other parties hereto and thereto, shall have been duly executed and delivered by Target and shall be valid and binding obligations of Target, enforceable against Target in accordance with their terms, except to the extent that their enforceability may be subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and to general equitable principles.

§4.2 Consents and Approvals; No Violations . (a ) Other than as set forth on Section 4.2(a) of the Target Disclosure Letter, the execution and delivery of this Agreement by Target do not, the execution and delivery by Target of the Ancillary Agreements to be executed and delivered by Target as contemplated hereby will not and the consummation by Target of the transactions contemplated hereby and thereby will not result in a violation or breach of, conflict with, constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, cancellation, payment or acceleration) under, or result in the creation of any Lien on any of the properties or assets of Target or any of its Subsidiaries (taken as a whole), except for Permitted Liens, under: (i) any provision of the Organizational Documents of Target or any of its Subsidiaries; (ii) subject to obtaining and making any of the approvals, consents, notices and filings referred to in paragraph (b) below, any Law or Order applicable to Target or

any of its Subsidiaries or by which any of their respective properties or assets may be bound; (iii) any of the terms, conditions or provisions of any Material Contract to which Target or any of its Subsidiaries is a party, or by which they or any of their respective properties or assets is bound except in the case of clauses (ii) and (iii) above, for such violations, filings, permits, consents, approvals, notices, breaches or conflicts which would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target.

(b) Except for such filings and approvals as may be required pursuant to the Hart-Scott-Rodino Antitrust Improvement Act of 1976, as amended, and the rules and regulations thereunder (the “ HSR Act ”) and as set forth on Section 4.2(b) of the Target Disclosure Letter, no consent, approval or action of, filing with or notice to any Governmental Entity or private third party is necessary or required under any of the terms, conditions or provisions of any Law or Order applicable to Target or any of its Subsidiaries or by which any of their respective properties or assets may be bound, any Material Contract to which Target or any of its Subsidiaries is a party or by which any of them or any of their respective assets or properties may be bound, for the execution and delivery of this Agreement by Target, the performance by Target of its obligations hereunder or the consummation of the transactions contemplated hereby other than those which, the failure to obtain or make, would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target.

§4.3 Existence and Good Standing of Target . Target is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. Target has all requisite corporate power and authority to own its property and to carry on its business as now being conducted. Target is duly qualified to do business and is in good standing in each jurisdiction in which the character or location of the properties owned, leased or operated by Target or the nature of the business conducted by Target makes such qualification necessary, except for such jurisdictions where the failure to be so qualified or licensed and in good standing would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target.

§4.4 Capitalization of Target . Target has an authorized capitalization consisting of (x) 215,000 shares of Target Common Stock of which 147,177.19 shares of Target Common Stock are issued and outstanding, 34,787 shares of Target Common Stock are reserved for issuance and none of which are held in Target’s treasury and (y) 20,000 shares of preferred stock, par value $0.01 per share, none of which are outstanding; provided , that the share numbers set forth in the foregoing clause (x)do not take into account any issuances of capital stock of Target after the date hereof upon the exercise of any options outstanding on the date hereof. All such outstanding shares of capital stock have been duly authorized and validly issued, are fully paid and nonassessable and were not issued in violation of any preemptive rights. Except as described above, no shares of capital stock of Target are authorized, issued, outstanding or reserved for issuance. Except as set forth on Section 4.4 of the Target Disclosure Letter, there are no outstanding or authorized options, warrants, rights, subscriptions, claims of any character, agreements, obligations, convertible or exchangeable securities, or other commitments, contingent or otherwise, relating to the capital stock of, or other equity or voting interest in, Target, pursuant to which Target or any of its Subsidiaries is or may become obligated to issue, deliver or sell or cause to be issued, delivered or sold, shares of Target Common Stock, any other

shares of the capital stock of or other equity or voting interest in, Target or any securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire, any shares of the capital stock of or other equity or voting interest in, Target. There are no outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights with respect to the capital stock of, or other equity or voting interest in, Target. Neither Target nor any of its Subsidiaries has any authorized or outstanding bonds, debentures, notes or other Indebtedness the holders of which have the right to vote (or convertible into, exchangeable for, or evidencing the right to subscribe for or acquire securities having the right to vote) with the Target Stockholders on any matter. Except as set forth on Section 4.4 of the Target Disclosure Letter, there are no Contracts to which Target or any of its Subsidiaries is a party or by which they are bound to (i) repurchase, redeem or otherwise acquire any shares of capital stock of, or other equity or voting interest in, Target or any other Person or (ii) vote or dispose of any shares of capital stock of, or other equity or voting interest in, Target. Except as set forth on Section 4.4 of the Target Disclosure Letter, there are no irrevocable proxies and no voting agreements with respect to any membership interests of, or other equity or voting interest in, Target.

§4.5 Target Subsidiaries . (a ) Set forth on Section 4.5(a) of the Target Disclosure Letter is a complete and accurate list of each Subsidiary of Target and the jurisdiction of organization of such Subsidiaries. Each Subsidiary of Target is duly organized, validly existing and in good standing (or, if applicable, in a foreign jurisdiction, enjoys the equivalent status under the Laws of any jurisdiction of organization outside of the United States) under the laws of the jurisdiction of its organization and has all requisite corporate power and authority to own its material property and to carry on its business as now being conducted.

(b) Set forth on Section 4.5(b) of the Target Disclosure Letter is a complete and accurate list of jurisdictions in which each Subsidiary of Target is qualified or licensed to do business. Each Subsidiary of Target is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the character or location of the properties owned, leased or operated by such Subsidiary or the nature of the business conducted by such Subsidiary make such qualification or licensing necessary, except for such jurisdictions where the failure to be so qualified or licensed and in good standing would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target.

(c) Each Subsidiary of Target has the capitalization set forth on Section 4.5(c) of the Target Disclosure Letter. All of the outstanding capital stock or other equity securities or voting interests, as the case may be, of each Subsidiary of Target have been duly authorized and validly issued, are fully paid and nonassessable and were not issued in violation of any preemptive rights, and, except as set forth on Section 4.5(c) of the Target Disclosure Letter are owned, of record and beneficially, by Target or a Subsidiary of Target, free and clear of all Liens, other than a Permitted Lien. There are no outstanding or authorized options, warrants, rights, subscriptions, claims of any character, agreements, obligations, convertible or exchangeable securities, or other commitments, contingent or otherwise relating to the capital stock of, or other equity or voting interest in, any Subsidiary of Target or any securities convertible into, exchangeable for, or evidencing the right to subscribe for or acquire any capital stock of, or other equity or voting interest in, such Subsidiary, other than such rights granted to Target or a Subsidiary of Target. There is no outstanding or authorized stock appreciation, phantom stock, profit participation or similar rights with respect to the capital stock of, or other

equity or voting interest in, any Subsidiary of Target. No Subsidiary of Target has any authorized or outstanding bonds, debentures, notes or other Indebtedness, the holders of which have the right to vote (or convertible into, exchangeable for, or evidencing the right to subscribe for or acquire securities having the right to vote) with the equityholders of any Subsidiary of Target on any matter. There are no Contracts to which any Subsidiary of Target is a party or by which they are bound to (i) repurchase, redeem or otherwise acquire any shares of the capital stock of, or other equity or voting interest in, any Subsidiary of Target or any other Person or (ii) vote or dispose of any shares of the capital stock of, or other equity or voting interest in, any Subsidiary of Target. There are no irrevocable proxies and no voting agreements with respect to any shares of the capital stock of, or other equity or voting interest in, any Subsidiary of Target.

(d) Neither Target nor any of its Subsidiaries owns, directly or indirectly, any capital stock of, or other equity, ownership, proprietary or voting interest in, any Person except as set forth on Section 4.5(a) of the Target Disclosure Letter.

(e) Except as set forth on Section 4.5(e) of the Target Disclosure Letter, there are no restrictions of any kind which prevent or restrict the payment of dividends or other distributions by Target or any of Target’s Subsidiaries other than those imposed by the Laws of general applicability of their respective jurisdictions of organization.

(f) Neither Target nor any of its Subsidiaries (i) is resident within the United Kingdom, the Channel Islands or the Isle of Man and (ii) at any time during the ten (10) years prior to the date of this agreement has (w) equity share capital which has been admitted to the Official List of the UK Listing Authority, (x) published dealings in their equity share capital in a newspaper on a regular basis for a continuous period of at least six (6) months, (y) equity share capital which has been subject to a marketing arrangement as described in Section 163(2)(b) of the Companies Act 1985 ( e.g. , their shares have been dealt in on AIM, PLUS or the Professional Securities Market), or (z) filed a prospectus for the issue of equity share capital with the UK Registrar.

(g) Target has made available to Parent complete and correct copies of the Organizational Documents of the Target and each of the Subsidiaries (including copies of all the resolutions and any other documents required under the laws of any applicable jurisdiction to be annexed or incorporated to such Organizational Documents).

§4.6 SEC Filings . (a ) Since October 31, 2007, Mobile Services Group, Inc. and Mobile Storage Group, Inc. have timely filed or otherwise transmitted all forms, reports and documents required to be filed with the SEC under the Securities Act and the Exchange Act (collectively with any amendments thereto, the “ Target SEC Reports ”). Each of the Target SEC Reports, as amended prior to the date hereof, has complied, or in the case of the Target SEC Reports filed after the date hereof will comply, as to form in all material respects with the applicable requirements of the Securities Act and the Exchange Act. None of the Target SEC Reports, as amended prior to the date hereof, contained, and in the case of the Target SEC Reports filed after the date hereof will contain, any untrue statement of a material fact or omitted or will omit to state a material fact required to be stated therein or necessary in order to make the statements therein at the time they were filed or will be filed, in the light of the circumstances under which they were made, not misleading, except for those statements (if any) as had been

modified by subsequent filings with the SEC prior to the date hereof. Other than Mobile Services Group, Inc. and Mobile Storage Group, Inc., neither Target nor any Subsidiary of Target is required to file any forms, reports or other documents with the SEC.

(b) Mobile Services Group, Inc. and Mobile Storage Group, Inc. have established and maintain disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act) as required by Rule 13a-15(a) under the Exchange Act. Mobile Services Group, Inc. and Mobile Storage Group, Inc. and each of their Subsidiaries maintain a system of internal controls over financial reporting sufficient to comply in all material respects with all legal and accounting requirements applicable to Mobile Services Group, Inc. and Mobile Storage Group, Inc. and such Subsidiary (as such term is defined in Rule 13a-15(f) under the Exchange Act) as required by Rule 13a-15(a) under the Exchange Act. Mobile Services Group, Inc. and Mobile Storage Group, Inc. have disclosed, based on their most recent evaluation of internal controls prior to the date hereof, to their auditors and audit committee (x) any significant deficiencies and material weaknesses in the design or operation of internal controls that are reasonably likely to adversely affect Mobile Services Group, Inc. and Mobile Storage Group, Inc.’s ability to record, process, summarize and report financial information and (y) any known fraud, whether or not material, that involves management or other employees who have a significant role in internal controls. Except as set forth on Section 4.6(b) of the Target Disclosure Letter, Mobile Services Group, Inc. and Mobile Storage Group, Inc. are in material compliance with all applicable provisions of the Sarbanes-Oxley Act of 2002.

(c) None of the information supplied or to be supplied by Target or the Target Stockholders specifically for inclusion or incorporation by reference in the proxy statement relating to the Parent Stockholders Meeting (together with any amendments thereof or supplements thereto, in each case in the form or forms distributed to the Parent’s stockholders, the “ Proxy Statement ”) will, at the date the Proxy Statement is first distributed to the stockholders of the Parent and at the time of the Parent Stockholders Meeting, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they are made, not misleading.

§4.7 Financial Statements . (a ) Target has made available to Parent the audited consolidated balance sheets of each of Mobile Services Group, Inc. and its Subsidiaries as at December 31, 2006, 2005 and 2004, and the related audited consolidated statements of operations, stockholders’ equity and cash flows for the years then ended, all certified by Ernst & Young LLP, and the unaudited consolidated balance sheet of such Persons as at September 30, 2007 and the related unaudited consolidated statements of operations, stockholders’ equity and cash flows for the nine months then ended unaudited consolidated balance sheet of Mobile Services Group, Inc. and its Subsidiaries as at September 30, 2007 (the “ Balance Sheet Date ”) is hereinafter referred to as the “ Balance Sheet ”. The financial statements referred to above, including the footnotes thereto, except as described therein, have been prepared from, and in accordance with, the books and records of Mobile Services Group, Inc. and its Subsidiaries (which books and records have been maintained in all material respects in a manner consistent with historical practice and are true and complete in all material respects), and, in accordance with U.S. generally accepted accounting principles (“ GAAP ”) consistently followed throughout

the periods indicated except, in the case of the unaudited financial statements, for the absence of notes thereto and subject to normal recurring year-end audit adjustments.

(b) The audited balance sheets referred to in (a) above fairly present, in all material respects, the financial condition of Mobile Services Group, Inc. and its Subsidiaries at the date thereof and the related statements of operations, stockholders’ equity and cash flows fairly present, in all material respects, the results of operations, stockholders’ equity, and cash flows of Mobile Services Group, Inc. and its Subsidiaries for the periods indicated.

(c) The Balance Sheet and such other unaudited balance sheets referred to in (a) above fairly present, in all material respects, the financial condition of Mobile Services Group, Inc. and its Subsidiaries as of the date thereof and the related statements of operations, stockholders’ equity and cash flows fairly present in all material respects, the results of operations, stockholders’ equity and cash flows of Mobile Services Group, Inc. and its Subsidiaries for the periods indicated (except for the absence of notes thereto and subject to normal and recurring year-end audit adjustments).

(d) A true and complete copy of the CapEx Budget is included in Section 4.7(d) of the Target Disclosure Letter.

(e) Included in Section 4.7(e) of the Target Disclosure Letter is a true and complete copy of the Draft Financial Statements. The Draft Financial Statements were prepared from, and in accordance with, the books and records of Mobile Services Group, Inc. and its Subsidiaries and, in accordance with GAAP on a consistent basis. The Draft Financial Statements were prepared in good faith by Mobile Services Group, Inc.’s management based upon information available to management at the time of preparation and upon assumptions that management believed to be reasonable at the time made. To the Knowledge of the Target, as of the date hereof the balance sheet included in the Draft Financial Statements fairly presents, in all material respects, the financial condition of Mobile Services Group, Inc. and its consolidated Subsidiaries at the date thereof and the related statements of operations and cash flows included in the Draft Financial Statements fairly present, in all material respects, the results of operations and cash flows, as applicable, of Mobile Services Group, Inc. and its consolidated Subsidiaries for the relevant period. For purposes of this Section 4.7(e) only, “ Knowledge of the Target ” means the actual knowledge of Douglas Waugaman and Allan Villegas after asking representatives of the Target’s auditors whether they are aware of any actual or potential audit adjustments. To the Knowledge of the Target, as of the date hereof no audit adjustments to the Draft Financial Statements are being considered or have been proposed. Except as set forth in this Section 4.7(e), the Target makes no other representation or warranty whatsoever concerning the Draft Financial Statements.

§4.8 Liabilities . Except as set forth on Section 4.8 of the Target Disclosure Letter, neither Target nor any of its Subsidiaries has any Liabilities except for (i) Liabilities set forth in the Balance Sheet or specifically disclosed in the footnotes thereto, (ii) accounts payable to trade creditors and accrued expenses incurred subsequent to the Balance Sheet Date in the ordinary course of business consistent with past practice, (iii) Liabilities that would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target, (iv) Liabilities under Material Contracts (none of which is a result of any

breach of Contract, breach of warranty, tort, infringement, or violation of applicable Law or Order by Target or any of its Subsidiaries, in each case, except as incurred in the ordinary course of business consistent with past practice), and (v) Liabilities under this Agreement and the Ancillary Documents.

§4.9 Books and Records . Except as would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target, the respective minute books of Target and its Subsidiaries, as previously made available to Parent and its representatives, contain accurate records of all meetings of, and corporate action taken by (including action taken by written consent) the respective members and boards of directors of Target and each of its Subsidiaries. Except as set forth on Section 4.9 of the Target Disclosure Letter, neither Target nor any Subsidiary has any of its material records, systems, controls, data or information recorded, stored, maintained, operated or otherwise wholly or partly dependent on or held by any means (including any electronic, mechanical or photographic process, whether computerized or not) which (including all means of access thereto and therefrom) are not under the exclusive ownership and direct control of Target or a Subsidiary.

§4.10 Properties ; Containers . (a ) Except as disclosed on Section 4.10 of the Target Disclosure Letter, Target or one of its Subsidiaries has good title to or, in the case of leased assets, a valid leasehold interest in, free and clear of all Liens, except for Permitted Liens, all material tangible personal property and assets reflected in the Balance Sheet or thereafter acquired, except for properties and assets disposed of in the ordinary course of business consistent with past practice, since the Balance Sheet Date in accordance with the terms of this Agreement. Target and its Subsidiaries own or have the exclusive right to use all of the tangible personal properties and assets that are material for the conduct of their business. Except as disclosed on Section 4.10 of the Target Disclosure Letter, all of the tangible personal property that is material for the conduct of the business of Target and its Subsidiaries is in reasonably good operating condition and repair, ordinary wear and tear excepted.

(b) Target has made available to Parent an accurate and complete list (except for clerical errors which are not material), showing Target’s rental fleet of storage trailers, storage containers and portable offices as of January 31, 2008, classified by branch.

§4.11 Owned Real Property . Section 4.11 of the Target Disclosure Letter contains an accurate and complete list of all real property owned in whole or in part by Target or any of its Subsidiaries and includes the name of the record title holder thereof. Target and each of its Subsidiaries has good and marketable title in fee simple to all the real property owned by it, free and clear of all Liens except for Permitted Liens. All of the material buildings, structures and appurtenances situated on the real property owned in whole or in part by Target or any of its Subsidiaries are in good operating condition and in a reasonable state of maintenance and repair (ordinary wear and tear excepted), are adequate and suitable in all material respects for the purposes for which they are presently being used and with respect to each, Target or one of its Subsidiaries has adequate rights of ingress and egress for operation of the business of Target or such Subsidiary in the ordinary course as currently conducted, except as would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target. None of such buildings, structures or appurtenances (or any equipment therein), nor the operation or maintenance thereof, violates any restrictive covenant or any provision of any Law

or Order, or encroaches on any property owned by others, except as would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target. No condemnation proceeding is pending or, to the Knowledge of Target, threatened which would preclude the use of any such property by Target or such Subsidiary for the purposes for which it is currently used.

§4.12 Leased Real Property . Section 4.12 of the Target Disclosure Letter contains an accurate and complete list of all leases or subleases of real property to which Target or any of its Subsidiaries is a party (as lessee or lessor) and involving an annual rental payment in excess of $50,000 (the “ Real Property Leases ”). Target or one of its Subsidiaries has valid leasehold interests in all leased real property described in each lease set forth on Section 4.12 of the Target Disclosure Letter (or required to be set forth on Section 4.12 of the Target Disclosure Letter), free and clear of any and all Liens, except for Permitted Liens. Each lease set forth on Section 4.12 of the Target Disclosure Letter (or required to be set forth on Section 4.12 of the Target Disclosure Letter) is in full force and effect; all rents and additional rents due to date on each such lease have been paid; in each case, the lessee has been in peaceable possession since the commencement of the original term of such lease and is not in material default thereunder and, since January 1, 2006, no waiver, indulgence or postponement of the lessee’s obligations thereunder has been granted by the lessor; and there exists no default or event, occurrence, condition or act (including the purchase of the Shares hereunder) which, with the giving of notice or the lapse of time would become a default under such lease, other than defaults which, would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target. Neither Target nor any of its Subsidiaries has violated any of the terms or conditions under any such lease except as would not individually or in the aggregate be reasonably expected to have a Material Adverse Effect with respect to Target, and, to the Knowledge of Target, all of the covenants to be performed by any other party under any such lease have been fully performed.

§4.13 Material Contracts . (a ) Section 4.13(a) of the Target Disclosure Letter, and with respect to clause (xvi) below, Section 4.12 of the Target Disclosure Letter, sets forth an accurate and complete list of the following Contracts to which Target or any of its Subsidiaries is a party or by which any of them is bound as of the date hereof (collectively, the “ Material Contracts ”):

(i) all Contracts which contain restrictions with respect to payment of dividends or any other distribution in respect of the capital stock or other equity interests of Target or any of its Subsidiaries;

(ii) all Contracts relating to capital expenditures or other purchases of material, supplies, equipment (including all Contracts to purchase containers, trailers or portable offices) or other assets or properties in excess of $250,000 individually, or $500,000 in the aggregate on an annual basis;

(iii) all Contracts involving a loan (other than accounts receivable in the ordinary course of business) or advance to (other than advances and allowances to the employees of Target and any of its Subsidiaries extended in the ordinary course of business), or investment in, any Person or any Contract relating to the making of any

such loan, advance or investment, in each case, in excess of $100,000 individually or $500,000 in the aggregate;

(iv) all Contracts involving Indebtedness of Target or any of its Subsidiaries;

(v) all Contracts with customers pursuant to which a customer leases or otherwise has possession of a container, trailer or portable office to the extent such Contract evidences quarterly revenue in excess of $500,000;

(vi) all Contracts granting or evidencing a Lien on any material properties or assets of Target or any of its Subsidiaries, other than a Permitted Lien;

(vii) any management service, consulting, financial advisory or any other similar type Contract and any Contracts with any investment or commercial bank and involving an annual amount in excess of $250,000;

(viii) all Contracts limiting the ability of Target or any of its Subsidiaries to engage in any line of business or to compete with any Person and, to the Knowledge of Target, any Contracts that would limit the ability of Parent or any of its Affiliates to engage in any line of business or to compete with any Person after the Effective Time;

(ix) all Contracts (other than this Agreement and any agreement or instrument entered into pursuant to this Agreement) with (A) any Affiliate of Target, or (B) any current or former officer or director of Target or any of its Subsidiaries, but not including any Contracts with any former officer or director of Target or any of its Subsidiaries to the extent that Target and such Subsidiaries do not have any ongoing Liabilities under such Contracts;

(x) all Contracts (including letters of intent) involving the future disposition or acquisition of material assets or properties (including acquisitions or dispositions of containers, trailers or portable offices for a purchase price in excess of $100,000), or any merger, consolidation or similar business combination transaction, whether or not enforceable;

(xi) all Contracts involving any material joint venture, partnership, strategic alliance, shareholders’ agreement, co-marketing, co-promotion, co-packaging, joint development or similar arrangement;

(xii) all Contracts involving any material resolution or settlement of any actual or threatened litigation, arbitration, claim or other dispute and involving an amount in excess of $100,000 (other than payments, discharges or satisfactions of workers’ compensation, auto insurance and general liability insurance claims);

(xiii) all Contracts involving a confidentiality, standstill or similar agreement or arrangement other than confidentiality agreements entered into in the ordinary course of business which would not limit the ability of Parent and its Subsidiaries to receive such information after the Effective Time;

(xiv) all Contracts involving payments of $250,000 or more, individually, to or from Target or any of its Subsidiaries which are not cancelable by Target or any of its Subsidiaries without penalty on ninety (90) days or less notice;

(xv) any material licenses of Intellectual Property to or from Target or its Subsidiaries (except for licenses of mass-marketed or shrink-wrap software available on non-discriminatory terms);

(xvi) any Real Property Lease; or

(xvii) any Contract pursuant to which any amount may become due and payable as a result of the transactions contemplated hereby, including without limitation, any change of control payments or severance arrangements.

(b) Each Contract set forth on Section 4.13(a) of the Target Disclosure Letter other than the Real Property Leases (or required to be set forth on Section 4.13(a) of the Target Disclosure Letter) is in full force and effect and there exists no (i) material default or event of default by Target or any of its Subsidiaries or, to the Knowledge of Target, any other party to any such Material Contract with respect to any material term or provision of any such Material Contract, (ii) to the Knowledge of Target, event, occurrence, condition or act (including the consummation of the transactions contemplated hereby) which, with the giving of notice, the lapse of time or the happening of any other event or condition, would become a material default or event of default by Target or any of its Subsidiaries or, to the Knowledge of Target, any other party thereto, with respect to any material term or provision of any such Material Contract. Target has made available to Parent true and complete copies, including all amendments, of each Contract set forth on Section 4.13(a) of the Target Disclosure Letter.

§4.14 Litigation . Except as set forth on Section 4.14 of the Target Disclosure Letter and except for open insurance claims for workers compensation, automobile liability and general liability which have been incurred in the ordinary course of business and reported to Target’s insurance carriers for which a liability accrual in accordance with GAAP has been recorded in the Balance Sheet, there is no material action, suit, charge, complaint, proceeding at law or in equity, arbitration, mediation, investigation, or administrative or other proceeding (each, a “ Proceeding ”) by or before any Governmental Entity or any other Person, nor, to the Knowledge of Target, is any such Proceeding threatened, against or affecting Target or any of its Subsidiaries, or any of their material properties, assets or rights. Except as set forth on Section 4.14 of the Target Disclosure Letter, neither Target nor any of its Subsidiaries is subject to any material Order.

§4.15 Taxes . Except as set forth on Section 4.15 of the Target Disclosure Letter:

(a) Tax Returns . Target and each of its Subsidiaries have timely filed or caused to be timely filed with the appropriate taxing authorities all material tax returns, statements, forms and reports (including elections, declarations, disclosures, schedules, estimates and information returns) for Taxes (“ Tax Returns ”) that are required to be filed by, or with

respect to, Target and/or any of its Subsidiaries. The Tax Returns in all material respects accurately reflect all liability for Taxes of Target and its Subsidiaries for the periods covered thereby.

(b) Payment of Taxes . All Taxes due by or with respect to the income, assets or operations of Target and/or its Subsidiaries for all past taxable years or periods have been timely paid in full on or prior to the Closing Date or accrued and adequately disclosed and provided for on the books and records of Target in accordance with GAAP.

(c) Other Tax Matters . (i) Neither Target nor any of its Subsidiaries is currently the subject of an audit, judicial proceeding or other examination in respect of Taxes by the tax authorities of any nation, state or locality (and, to the Knowledge of Target, no such audit, judicial proceeding or other examination is contemplated) nor has Target or any of its Subsidiaries received any written notices from any taxing authority in the past three years relating to any issue that could affect the Tax liability of Target

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