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EXHIBIT 10.1
 
EXECUTION COPY
 
AMENDMENT NO. 1 TO AMENDED AND RESTATED
CREDIT AGREEMENT

This Amendment No. 1 to Amended and Restated Credit Agreement (this "Agreement")
dated as of July 18, 2005 is made by and among COVENANT ASSET MANAGEMENT, INC.,
a Nevada corporation (the "Borrower"), COVENANT TRANSPORT, INC., a Nevada
corporation and the owner of 100% of the issued and outstanding common stock of
the Borrower (the "Parent"), BANK OF AMERICA, N.A., a national banking
association organized and existing under the laws of the United States ("Bank of
America"), in its capacity as administrative agent for the Lenders (as defined
in the Credit Agreement (as defined below)) (in such capacity, the "Agent"),
each of the Lenders signatory hereto and each of the Guarantors (as defined in
the Credit Agreement) signatory hereto.

WITNESSETH:

WHEREAS, the Borrower, the Parent, the Agent and the Lenders have entered into
that certain Amended and Restated Credit Agreement dated as of December 16,
2004, (as hereby amended and as from time to time hereafter further amended,
modified, supplemented, restated, or amended and restated, the "Credit
Agreement"; the capitalized terms used in this Agreement not otherwise defined
herein shall have the respective meanings given thereto in the Credit
Agreement), pursuant to which the Lenders have made available to the Borrower
various revolving credit facilities, including a letter of credit facility and a
swing line facility; and

WHEREAS, each of the Parent and the Guarantors has entered into a Facility
Guaranty pursuant to which it has guaranteed certain or all of the obligations
of the Borrower under the Credit Agreement and the other Loan Documents, and the
Parent, the Borrower and the Guarantors have entered into various of the
Security Instruments to secure their respective obligations and liabilities in
respect the Loans and the Loan Documents; and

WHEREAS, the Parent and the Borrower have advised the Agent and the Lenders that
they desire to amend certain provisions of the Credit Agreement as set forth
below, and the Agent and the Lenders signatory hereto are willing so to effect
such amendments contained herein on the terms and conditions contained in this
Agreement;

NOW, THEREFORE, in consideration of the premises and further valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

1.     Amendment to Credit Agreement. Subject to the terms and conditions set
forth herein, the Credit Agreement is hereby amended by deleting the definition
of "Consolidated EBITDAR" in its entirety and inserting the following in its
place:

"Consolidated EBITDAR" means, with respect to the Parent and its Subsidiaries
for any Four-Quarter Period ending on the date of computation thereof, the sum
of, without duplication, (i) Consolidated Net Income, (ii) Consolidated Interest
Expense, (iii) taxes on income, (iv) depreciation, (v) amortization, (vi)
Consolidated Lease Payments and (vii) for the applicable Four-Quarter Periods,
the charge of approximately

 

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$19,600,000 taken by the Parent in the fourth fiscal quarter of 2004 related to
increases in estimated casualty and worker's compensation claims, all of the
above determined on a consolidated basis in accordance with GAAP applied on a
Consistent Basis, subject to Acquisition Adjustments.

2.     Conditions Precedent. This Agreement and the amendments to the Credit
Agreement provided in Paragraph 1 shall be effective as of June 30, 2005 upon
the satisfaction of the following conditions precedent:

(a)    The Administrative Agent shall have received each of the following
documents or instruments in form and substance reasonably acceptable to the
Administrative Agent:

  (i)      ten (10) original counterparts of this Agreement, duly executed by
the Parent, the Borrower, the Agent, each Guarantor, and such other Lenders as
are necessary to constitute the Required Lenders; and

  (ii)     such other documents, instruments, opinions, certifications,
undertakings, further assurances and other matters as the Agent shall reasonably
request.

(b)    all fees and expenses payable to the Agent and the Lenders (including the
fees and expenses of counsel to the Agent) accrued to date shall have been paid
in full to the extent invoiced prior to or on the effective date of this
Agreement, but without prejudice to the later payment of accrued fees and
expenses not so invoiced.

3.     Consent of the Parent and the Guarantors. Each of the Parent and the
Guarantors has joined in the execution of this Agreement for the purposes of
consenting hereto and for the further purpose of confirming its guaranty of the
Obligations of the Borrower pursuant to the Facility Guaranty to which the
Parent or such Guarantor is party and its obligations under each other Loan
Documents to which it is a party. The Parent and each Guarantor hereby consents,
acknowledges and agrees to the amendments of the Credit Agreement set forth
herein and hereby confirms and ratifies in all respects the Facility Guaranty
and each other Loan Document to which the Parent or such Guarantor is a party
and the enforceability of such Facility Guaranty and each such other Loan
Document against the Parent and such Guarantor in accordance with its terms.

4.     Representations and Warranties. In order to induce the Agent and the
Lenders party hereto to enter into this Agreement, each of the Parent and the
Borrower represent and warrant to the Agent and such Lenders as follows:
 
         (a)    The representations and warranties made by the Parent and the
Borrower in Article VIII of the Credit Agreement (after giving effect to this
Agreement) and by each Loan Party in each of the other Loan Documents to which
it is a party are true and correct in all material respects on and as of the
date hereof, except to the extent that such representations and warranties
expressly relate to an earlier date;

  (b)     Since the date of the most recent financial reports of the Parent
delivered pursuant to Section 9.1 of the Credit Agreement, no act, event,
condition or circumstance has occurred or arisen which, singly or in the
aggregate with one or more other acts,

 

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events, occurrences or conditions (whenever occurring or arising), has had or
could reasonably be expected to have a Material Adverse Effect;

        (c)    The Persons appearing as Guarantors on the signature pages to
this Agreement constitute all Persons who are required to be Guarantors pursuant
to the terms of the Credit Agreement and the other Loan Documents, including
without limitation all Persons who became Subsidiaries or were otherwise
required to become Guarantors after the Closing Date as a result of any merger,
acquisition or other reorganization, and each such Person has executed and
delivered a Facility Guaranty;

        (d)    This Agreement has been duly authorized, executed and delivered
by the Parent, the Borrower and the Guarantors party hereto and constitutes a
legal, valid and binding obligation of such parties, except as may be limited by
general principles of equity or by the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar law affecting creditors'
rights generally; and

        (e)    No Default or Event of Default has occurred and is continuing
either immediately prior to or immediately after the effectiveness of this
Amendment.

5.     Entire Agreement. This Agreement, together with all the Loan Documents
(collectively, the "Relevant Documents"), sets forth the entire understanding
and agreement of the parties hereto in relation to the subject matter hereof and
supersedes any prior negotiations and agreements among the parties relative to
such subject matter. No promise, condition, representation or warranty, express
or implied, not herein set forth shall bind any party hereto, and not one of
them has relied on any such promise, condition, representation or warranty. Each
of the parties hereto acknowledges that, except as otherwise expressly stated in
the Relevant Documents, no representations, warranties or commitments, express
or implied, have been made by any party to the other. None of the terms or
conditions of this Agreement may be changed, modified, waived or canceled orally
or otherwise, except as permitted pursuant to Section 13.6 of the Credit
Agreement.

6.     Full Force and Effect of Agreement. Except as hereby specifically
amended, modified or supplemented, the Credit Agreement and all other Loan
Documents are hereby confirmed and ratified in all respects by each party hereto
and shall be and remain in full force and effect according to their respective
terms.

7.     Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original as against any party
whose signature appears thereon, and all of which shall together constitute one
and the same instrument.

8.     Governing Law. This Agreement shall in all respects be governed by, and
construed in accordance with, the laws of the state of Tennessee.

9.     Enforceability. Should any one or more of the provisions of this
Agreement be determined to be illegal or unenforceable as to one or more of the
parties hereto, all other provisions nevertheless shall remain effective and
binding on the parties hereto.

 

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10.     References. All references in any of the Loan Documents to the "Credit
Agreement" shall mean the Credit Agreement, as amended hereby.

11.     Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the Parent, the Borrower, the Administrative Agent and each of
the Guarantors and Lenders, and their respective successors, assigns and legal
representatives; provided, however, that neither the Parent, the Borrower nor
any Guarantor, without the prior consent of the Required Lenders, may assign any
rights, powers, duties or obligations hereunder.

12.     Expenses. The Parent and the Borrower agree to pay to the Agent all
reasonable out-of-pocket expenses of the Administrative Agent (including the
fees and expenses of counsel to the Agent) incurred or arising in connection
with the negotiation and preparation of this Agreement.

[Signature pages follow.]

 

 
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made,
executed and delivered by their duly authorized officers as of the day and year
first above written.

BORROWER:
 
COVENANT ASSET MANAGEMENT, INC., a Nevada corporation
 
By:  /s/ Joey B. Hogan 
Name:  Joey B. Hogan
Title: EVP/CFO
   
PARENT:
 
COVENANT TRANSPORT, INC., a Nevada corporation
 
By:  /s/ Joey B. Hogan 
Name:  Joey B. Hogan
Title: EVP/CFO

 

 
Signature Page
 

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GUARANTORS:
   
COVENANT TRANSPORT, INC.,
a Tennessee corporation
 
By:  /s/ Joey B. Hogan 
Name:  Joey B. Hogan
Title:  EVP/CFO
   
HAROLD IVES TRUCKING CO.,
an Arkansas corporation
 
By:  /s/ Joey B. Hogan 
Name:  Joey B. Hogan
Title:  EVP/CFO
   
SOUTHERN REFRIGERATED TRANSPORT,
INC.,
an Arkansas corporation
 
By:  /s/ Joey B. Hogan 
Name:  Joey B. Hogan
Title:  EVP/CFO
   
COVENANT.COM, INC.,
a Nevada corporation
 
By:  /s/ Joey B. Hogan 
Name:  Joey B. Hogan
Title:  EVP/CFO
   
CIP, INC.,
a Nevada corporation
 
By:  /s/ Joey B. Hogan 
Name:  Joey B. Hogan
Title:  EVP/CFO

 
 

 
 
Signature Page
 

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AGENT:
 
BANK OF AMERICA, N.A., as Agent
 
By:  /s/ Ronaldo Naval 
Name:  Ronaldo Naval 
Title:  Vice President 

 

 

 
 
 
 
 
 

 
 

 
Signature Page
 

 

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LENDERS:
 
BANK OF AMERICA, N.A.
 
By:  /s/ Andrew Bunton 
Name:  Andrew Bunton 
Title:  Bank of America 

 
 
 
 
Signature Page
 
 

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NATIONAL CITY BANK OF KENTUCKY
 
By:  /s/ Kevin L. Anderson 
Name:  Kevin L. Anderson 
Title:  Senior Vice President 

 

 
 
 

 
 
Signature Page
 

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AMSOUTH BANK
 
By:  /s/ W. Walter Robinson 
Name:  W. Walter Robinson III 
Title:  VP  

 

 

 
 
 
 
 
 
 

 
Signature Page
 

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SUNTRUST BANK
 
By:  /s/ William H. Crawford 
Name: William H. Crawford  
Title: Director  

 

 

 

 
 
 
 

 
 

 
Signature Page
 

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BRANCH BANKING AND TRUST COMPANY
 
By:  /s/ L. Allen Rathbone, SVP 
Name:  L. Allen Rathbone 
Title:  Senior Vice President 

 
 

 

 

Signature Page
 

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FIRST TENNESSEE BANK NATIONAL ASSOCIATION
 
By:  /s/ Robert T. Lusk 
Name:  Robert T. Lusk 
Title:  Vice President 

 

 
 
 
 
 
 

 
 
 
Signature Page
 

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BNP PARIBAS
 
By:  /s/ Jeff Tebeaux 
Name:  Jeff Tebeaux 
Title:  Vice President 
 
By:  /s/ Henry F. Setina 
Name:  Henry F. Setina 
Title:  Director 

 
 
 
 
 
 

 
 

Signature Page
 
 
Back to Form 8-K [form8kjuly2005.htm]
 

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