Document:

Exhibit 10.1 Amended and Restated Credit Agreement

    EXHIBIT 10.1

     

     

    

      AMENDED
        AND RESTATED CREDIT AGREEMENT

       

      AMONG

       

      COMERICA
        BANK,

       

      as
        Administrative Agent for itself and other Banks,

       

      LASALLE
        BANK NATIONAL ASSOCIATION,

       

      as
        Collateral Agent and Syndication Agent for itself and other
        Banks,

       

      

       

      and

       

      

       

      FFE
        TRANSPORTATION SERVICES, INC.,

       

      as
        Borrower,

       

      and
        certain of its affiliates

       

      as
        of October 12, 2006

       

      
      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      

      TABLE
        OF CONTENTS

       

       

       

       

      ARTICLE
        I DEFINITIONS

       

      Section
        1.1  Definitions

      Section
        1.2  UCC
        Changes

       

       ARTICLE
        II
        AMOUNTS AND TERMS OF CREDIT COMMITMENTS

       

       Section
        2.1  Commitments.

      Section
        2.2   The
        Notes

      Section
        2.3   Repayment
        of Loans

      Section
        2.4   Interest
        and Fees.

      Section
        2.5   Borrowing
        Procedure

      Section
        2.6   Optional
        Prepayments, Conversions and Continuations of Loans

      Section
        2.7   Mandatory
        Prepayments.

      Section
        2.8   Minimum
        Amounts

      Section
        2.9   Certain
        Notices

      Section
        2.10 Use
        of
        Proceeds.

      Section
        2.11 Fees

      Section
        2.12 Computations

      Section
        2.13 Termination
        or Reduction of Commitments.

      Section
        2.14 Letters
        of Credit.

      Section
        2.15 Method
        of Payment

      Section
        2.16 Pro
        Rata Treatment

      Section
        2.17 Sharing
        of Payments, Etc.

      Section
        2.18 Non-Receipt
        of Funds by Administrative Agent

      Section
        2.19 Withholding
        Taxes.

      Section
        2.20 Withholding
        Tax Exemption

      Section
        2.21 Reinstatement
        of Obligations

      Section
        2.22 Additional
        Costs.

      Section
        2.23 Limitation
        on Types of Loans

      Section
        2.24 Illegality

      Section
        2.25 Treatment
        of Affected Loans

      Section
        2.26 Compensation

      Section
        2.27 Capital
        Adequacy

       

       ARTICLE
        III
        CONDITIONS PRECEDENT

       

      Section
        3.1   Conditions
        Precedent to Initial Loans and Letters of Credit

      Section
        3.2   Conditions
        of Subsequent Advances

      Section
        3.3   Effect
        of Request for any Subsequent Advance or Conversion or Continuation, or Request
        for Letter of Credit

       

      ARTICLE
        IV
        CERTAIN REPRESENTATIONS AND WARRANTIES

       

      Section
        4.1   Corporate
        Existence and Authority; Names

      Section
        4.2   Financial
        Statements

      Section
        4.3   Compliance
        with Laws and Documents; Existing Defaults; Litigation

      Section
        4.4   Enforceability

      Section
        4.5   Payment
        of Taxes

      Section
        4.6   Plan
        Obligations

      Section
        4.7   Purpose
        of Advances and Letters of Credit

      Section
        4.8   Ownership
        of the Companies

      Section
        4.9   Existing
        Indebtedness

      Section
        4.10 Rights
        in Properties; Existing Liens

      Section
        4.11 Material
        Agreements

      Section
        4.12 Environmental
        Matters.

      Section
        4.13 Common
        Enterprise

      Section
        4.14 Workers’
        Compensation

      Section
        4.15 Solvency

       

      ARTICLE
        V
        CERTAIN COVENANTS OF THE COMPANIES

       

      Section
        5.1   Affirmative
        Covenants

      Section
        5.2   Negative
        Covenants

       

      ARTICLE
        VI
        DEFAULT

       

      Section
        6.1   Payment
        of Obligations

      Section
        6.2   Covenants.

      Section
        6.3   Misrepresentation

      Section
        6.4   Voluntary
        Debtor Relief

      Section
        6.5   Involuntary
        Debtor Relief

      Section
        6.6   Judgments

      Section
        6.7   Attachment

      Section
        6.8   Default
        of Other Debt

      Section
        6.9   Other
        Agreements

      Section
        6.10 Change
        in Control

       

      ARTICLE
        VII
        REMEDIES

       

      Section
        7.1   Acceleration

      Section
        7.2   Loans
        and Letters of Credit

      Section
        7.3   Judgment

      Section
        7.4   Rights

      Section
        7.5   Default
        with Respect to Base Rate Loans

      Section
        7.6   Default
        with Respect to LIBOR Loans

      Section
        7.7   Default
        with Respect to Letters of Credit

      Section
        7.8   Automatic
        Acceleration Due to Certain Defaults

       

      ARTICLE
        VIII
        AGENTS

       

      Section
        8.1   Administrative
        Agent Appointment and Authorization; Administration; Duties

      Section
        8.2   Collateral
        Agent Appointment and Authorization; Administration;
        Duties.

      Section
        8.3   Advances
        and Payments

      Section
        8.4   Sharing
        of Setoffs

      Section
        8.5   Liability
        of Agents.

      Section
        8.6   Reimbursement
        and Indemnification

      Section
        8.7   Rights
        of Administrative Agent and Collateral Agent

      Section
        8.8   Independent
        Investigation and Credit Decision by Banks

      Section
        8.9   Successor
        Agents

      Section
        8.10 Syndication
        Agent

       

      ARTICLE
        IX
        MISCELLANEOUS

       

      Section
        9.1   Performance
        by Agents and the Banks

      Section
        9.2   Waivers

      Section
        9.3   Cumulative
        Rights

      Section
        9.4   Other
        Rights and Remedies

      Section
        9.5   Expenditures
        of Administrative Agent and Banks

      Section
        9.6   Form
        and Number of Documents

      Section
        9.7   Accounting
        Terms

      Section
        9.8   Money

      Section
        9.9   Headings

      Section
        9.10 Articles,
        Sections, Exhibits and Schedules

      Section
        9.11 Number
        and Gender of Words

      Section
        9.12 Business
        Day

      Section
        9.13 Notices

      Section
        9.14 Parties
        Bound

      Section
        9.15 Exceptions
        to Covenants

      Section
        9.16 Successors
        and Assigns.

      Section
        9.17 Effect
        of Investigations

      Section
        9.18 GOVERNING
        LAW; VENUE; SERVICE OF PROCESS.

      Section
        9.19 Maximum
        Interest Rate.

      Section
        9.20 Invalid
        Provisions

      Section
        9.21 Entirety
        and Amendments

      Section
        9.22 Survival

      Section
        9.23 Setoff

      Section
        9.24 Multiple
        Counterparts

      Section
        9.25 Term
        of Agreement

      Section
        9.26 Limitation
        of Liability

      Section
        9.27 No
        Fiduciary Relationship

      Section
        9.28 Construction

      Section
        9.29 Waiver
        and Release

      Section
        9.30 NO
        ORAL AGREEMENTS

      Section
        9.31 Joint
        and Several Obligations

      Section
        9.32 WAIVER
        OF JURY TRIAL

      Section
        9.33 Restatement

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      INDEX
        TO
        EXHIBITS AND SCHEDULES

       

      

       

      Schedules

       

      1.1 Commitments

       

      4.3 Litigation

       

      4.6 Plans

       

      4.9 Existing
        Indebtedness

       

      4.11 Material
        Agreements

       

      

       

      Exhibits

       

      A. Borrowing
        Base Report

       

      B. Notice
        of
        Activity

       

      C. Revolving
        Credit Note

       

      D. Compliance
        Certificate

       

      E. New
        Entity Agreement

       

      F. Assignment
        and Acceptance

       

      G. Security
        Agreement

       

      H. Vehicles
        Security Agreement

       

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      AMENDED
        AND RESTATED CREDIT AGREEMENT

       

      THIS
        AMENDED AND RESTATED CREDIT AGREEMENT is entered into (this “Agreement”), among
        FFE TRANSPORTATION SERVICES, INC., a Delaware corporation (“Borrower”),
        FROZEN FOOD EXPRESS INDUSTRIES, INC., a Texas corporation (“Parent”),
        FFE,
        INC., a Delaware corporation (“FFE”),
        CONWELL CORPORATION, a Delaware corporation (“Conwell”),
        FX
        HOLDINGS, INC. (formerly named AIRPRO HOLDINGS, INC), a Delaware corporation
        (“FX”), LISA MOTOR LINES, INC., a Delaware corporation (“LML”),
        FROZEN FOOD EXPRESS, INC., a Texas corporation (“Express”),
        CONWELL CARTAGE, INC., a Texas corporation (“Cartage”),
        MIDDLETON TRANSPORTATION COMPANY, a Texas corporation (“Middleton”),
        COMPRESSORS PLUS, INC., a Texas corporation (“CPI”),
        FFE
        LOGISTICS, INC. (formerly known as AEL Transports, Inc.), a Delaware corporation
        (“Logistics”),
        CONWELL LLC, a Delaware limited liability company (“Conwell
        LLC”),
        LASALLE BANK NATIONAL ASSOCIATION, a national banking association (“LaSalle”),
        COMERICA BANK, a Michigan banking association (“Comerica”),
        each
        other entity which may from time to time become party hereto as a lender
        hereunder or any successor or assignee thereof (such lenders and the Issuing
        Bank, collectively, the “Banks”),
        Comerica as Administrative Agent and as Issuing Bank, and LaSalle as Syndication
        Agent and as Collateral Agent.

       

      For
        good
        and valuable consideration, the receipt and adequacy of which are hereby
        acknowledged, the parties hereto hereby agree as follows:

       

      ARTICLE
        I  

       

      DEFINITIONS

       

      Section
        1.1  Definitions

      As
        used
        herein, meanings indicated the following terms shall have the meanings
        indicated:

       

      “Additional
        Costs”
shall
        have the meaning set forth in Section
        2.22(a).

       

      “Adjustment
        Date”
shall
        have the meaning set forth in Section
        2.4(b).

       

      “Administrative
        Agent”
means
        Comerica Bank in its capacity as administrative agent for the Banks under
        this
        Agreement, and its successors and assigns in such capacity.

       

      “Advance”
means
        the disbursement of an amount or amounts loaned or to be loaned by any Bank
        to
        Borrower hereunder.

       

      “Affiliate”
means,
        as to any Person, any other Person (a) that directly or indirectly, through
        one
        or more intermediaries, Controls or is Controlled by, or is under common
        Control
        with, such first Person, (b) that directly or indirectly beneficially owns
        or
        holds five percent or more of any class of voting capital stock of such first
        Person, or (c) five percent or more of the voting capital stock of which
        is
        directly or indirectly beneficially owned or held by such first Person;
        provided, however, in no event shall any Agent or any Bank be deemed an
        Affiliate of Borrower, Parent or any Subsidiaries.

       

      “Agents”
means
        collectively, Administrative Agent, Collateral Agent and Syndication Agent,
        and
“Agent”
shall
        mean any one of them.

       

      “Agreement”
means
        this Amended and Restated Credit Agreement, as it may be amended, renewed,
        extended, or restated from time to time.

       

      “Applicable
        Lending Office”
means
        for each Bank and each Type of Loan, the lending office of such Bank (or
        of an
        Affiliate of such Bank) designated for such Type of Loan below its name on
        the
        signature pages hereof (or, with respect to a Bank that becomes a party to
        this
        Agreement pursuant to an assignment made in accordance with Section
        9.16,
        in the
        Assignment and Acceptance executed by it) or such other office of such Bank
        (or
        an Affiliate of such Bank) as such Bank may from time to time specify to
        Administrative Agent as the office by which its Loans of such Type are to
        be
        made and maintained.

       

      “Applicable
        Rate”
shall
        have the meaning set forth in Section
        2.4(a).

       

      “Article(s)”
shall
        have the meaning set forth in Section
        9.10.

       

      “Assignee”
shall
        have the meaning set forth in Section
        9.16(b).

       

      “Assigning
        Bank”
shall
        have the meaning set forth in Section
        9.16(b).

       

      “Assignment
        and Acceptance”
means
        an Assignment and Acceptance in substantially the form of Exhibit
        F.

       

      “Banks”
means
        as defined in the introductory paragraph.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Base
        Rate”
means
        the higher of (i) the rate of interest per annum then most recently established
        by Comerica as its prime or base rate of interest (which rate may not be
        the
        lowest rate of interest charged by Comerica) or (ii) the Federal Funds Rate
        plus
        0.5%, with each change in the Base Rate to become effective, without notice
        to
        Borrower, as of the opening of business on the effective date of each change
        in
        the Base Rate; provided,
        however,
        that,
        in the event Comerica is no longer Administrative Agent hereunder for whatever
        reason, the aforesaid reference in this definition to Comerica shall instead
        be
        deemed to mean and refer to such Bank as may from time to time be Administrative
        Agent hereunder, in such Bank’s capacity as a Bank hereunder, or such other Bank
        as may from time to time be specified by the Banks in their discretion, which
        Base Rate shall be established by such Bank in accordance with its internal
        policies and procedures applicable from time to time.

       

      “Base
        Rate Loan”
means
        a
        Loan that bears interest at the Base Rate.

       

      “Base
        Rate Margin”
shall
        have the meaning set forth in Section
        2.4(b)(i).

       

      “Borrower”
means
        FFE Transportation Services, Inc., a Delaware corporation.

       

      “Borrowing
        Base”
means
        the sum of:

       

      (a)  an
        amount
        equal to (i) eighty-five percent (85%) of the aggregate Eligible Accounts;
        plus

       

      (b)  so
        long
        as any Vehicles are included in the Borrowing Base, an amount equal to the
        lesser of (i) $15,000,000, or (ii) sixty-five percent (65%) of the Orderly
        Liquidation Value of Vehicle Collateral in which the Collateral Agent, for
        the
        benefit of the Banks, has a valid, perfected Lien and which is not subject
        to
        any Lien other than Liens in favor of Collateral Agent and the
        Banks;

       

      all
        calculated in accordance with GAAP based upon consolidated financial information
        of Parent and the Subsidiaries. The Borrowing Base shall be determined by
        Administrative Agent from time to time in its good faith judgment.

       

      “Borrowing
        Base Availability”
means
        (a) the Borrowing Base, minus
        (b) the
        Outstanding Revolving Credit.

       

      “Borrowing
        Base Report”
means
        a
        report prepared and executed by Borrower, substantially in the form of
Exhibit
        A
        attached
        hereto appropriately completed, in form and substance satisfactory to
        Administrative Agent evidencing the calculation of the Borrowing
        Base.

       

      “Business
        Day”
means
        (a) any day on which commercial banks are not authorized or required to close
        in
        Dallas, Texas, or Chicago, Illinois, and (b) with respect to all Advances,
        payments, Conversions, Continuations, Interest Periods and notices in connection
        with LIBOR Loans, any day which is a Business Day described in clause (a)
        above
        and which is also a day on which dealings in Dollar deposits are carried
        out in
        the London interbank market.

       

      “Calculation
        Period”
shall
        have the meaning set forth in Section
        2.4(b)(i).

       

      “Capital
        Expenditure”
means
        any and all expenditures by a Person for (i) an asset which will be used
        in a
        year or years subsequent to the year in which the expenditure is made and
        which
        asset is properly classified in relevant financial statements of such Person
        as
        equipment, real property or improvements, fixed assets or a similar type
        of
        capitalized asset in accordance with GAAP, (ii) an asset relating to or acquired
        in connection with an acquired business, and (iii) any and all acquisition
        costs
        related to (i) and (ii) above.

       

      “CERCLA”
means
        the Comprehensive Environmental Response, Compensation and Liability Act
        of
        1980, as amended by the Superfund Amendments and Reauthorization Act of 1986,
        as
        the same may be amended from time to time.

       

      “Change
        in Control”
means
        (a) the acquisition of ownership, directly or indirectly, beneficially or
        of
        record, by any Person or group (within the meaning of the Securities Exchange
        Act of 1934 and the rules of the Securities and Exchange Commission thereunder
        as in effect on the date hereof), other than the Stubbs Group and the Weller
        Group, of shares representing more than 30% of either the aggregate ordinary
        voting power or the aggregate equity value represented by the issued and
        outstanding capital stock of the Parent; (b) occupation of a majority of
        the
        seats (other than vacant seats) on the board of directors of the Parent by
        Persons who were neither (i) nominated by the board of directors of the Parent
        nor (ii) appointed by directors so nominated; or (c) the acquisition of direct
        or indirect Control of the Parent by any Person or group.

       

      “Closing
        Date”
means
        October 12, 2006.

       

      “Code”
means
        the Uniform Commercial Code of Texas.

       

      “Collateral”
means
        any and all property or assets in which a security interest, pledge or other
        such interest has been or from time to time may be granted to Administrative
        Agent, Collateral Agent and the Banks to secure the Obligations.

       

      “Collateral
        Agent”
means
        LaSalle Bank National Association in its capacity as collateral agent for
        the
        Banks under this Agreement, and its successors and assigns in such
        capacity.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Commitment”
means,
        with respect to each Bank, the obligation of such Bank, in accordance with
        this
        Agreement, to make or continue Loans and to make or participate in Letter
        of
        Credit Liabilities in an aggregate principal amount at any one time outstanding
        up to but not exceeding the amount set forth opposite the name of such Bank
        on
Schedule
        1.1
        or, if
        such Bank is party to an Assignment and Acceptance, as set forth in the most
        recent Assignment and Acceptance of such Bank, and as the same may be increased
        or decreased pursuant to this Agreement or as otherwise set forth in this
        Agreement.

       

      “Companies”
means
        Parent, Borrower and the Other Subsidiaries, and a “Company”
means
        any of Parent, Borrower or an Other Subsidiary.

       

      “Compliance
        Certificate”
means
        a
        certificate in the form of Exhibit
        D
        hereto
        with the blanks completed accurately and signed by the Chief Financial Officer
        or Treasurer of Parent and the Chief Financial Officer or Vice President
        of
        Finance of Borrower.

       

      “Consolidated
        Tangible Net Worth”
        means,
        at
        any time, all amounts
        which in
        conformity with GAAP would be included as stockholders’ equity or owners’ equity
        on a consolidated balance sheet of the Companies; provided, however, there
        shall
        be excluded therefrom (a) any amount at which shares of capital stock of
        any
        Person appear as an asset on the balance sheet of such Person, (b) goodwill,
        including any amounts, however designated, that represent the excess of the
        purchase price paid for assets or stock over the value assigned thereto,
        (c)
        patents, trademarks, trade names and copyrights, (d) deferred expenses, (e)
        loans and advances to any stockholder, director, officer, partner, or employee
        of any Company or any Affiliate of any Company, (f) Operating Rights, and
        (g)
        all other assets which are properly classified as intangible
        assets.

       

      “Consolidated
        Total Liabilities”
means,
        at any time, all liabilities that, in accordance with GAAP, should be classified
        as such on a consolidated balance sheet of the Companies.

       

      “Continue”,
        “Continuation”
and
        “Continued”
shall
        refer to the continuation pursuant to Section
        2.6
        of any
        LIBOR Loan as a LIBOR Loan from one Interest Period to the next Interest
        Period.

       

      “Contract
        Rate”
shall
        have the meaning set forth in Section
        9.19(a).

       

      “Control”
means
        the possession, directly or indirectly, of the power to direct or cause
        direction of the management and policies of a Person, whether through the
        ownership of voting securities, by contract, or otherwise.

       

      “Convert”,
        “Conversion”
and
        “Converted”
shall
        refer to a conversion pursuant to Section
        2.1(b),
        Section
        2.6,
        Section
        2.22,
        or
Section
        2.24
        of one
        Type of Loan into another Type of Loan.

       

      “Current
        Financials”
shall
        have the meaning set forth in Section
        4.2.

       

      “Debtor
        Relief Laws”
means
        any applicable liquidation, conservatorship, bankruptcy, moratorium,
        rearrangement, insolvency, reorganization, or similar debtor relief laws
        affecting the rights of creditors generally from time to time in
        effect.

       

      “Default”
shall
        have the meaning set forth in Article
        VI.

       

      “Default
        Rate”
shall
        have the meaning set forth in Section
        2.4(a).

       

      “Demo
        Vehicles”
shall
        have the meaning specified in the definition of “Permitted
        Liens”.

       

      “Deposit”
shall
        have the meaning set forth in Section
        7.7.

       

      “Dollars”
or
        “$”
have
        the meaning set forth in Section
        9.8.

       

      “EBITDAR”
shall
        have the meaning set forth in Section
        5.1(f).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Eligible
        Accounts”
means,
        as of any date, an amount equal to the aggregate net invoice or ledger amount
        owing on all trade accounts receivable of the Companies, on a consolidated
        basis, for goods sold or leased (provided such goods have been shipped) or
        services rendered, after deducting (without duplication): (i) each such account
        that is unpaid 90 days after the original invoice date thereof, (ii) all
        such
        accounts in which a Person (other than the Banks specifically as security
        for
        the Obligations) has a Lien, (iii) the amount of all discounts, allowances,
        rebates, credits and adjustments to such accounts, (iv) all contra accounts,
        setoffs, defenses or counterclaims asserted by or available to the Persons
        obligated on such accounts, provided, however, that with respect to freight
        claims which constitute a part of accrued claims liability, only the current
        or
        short-term portion thereof shall be so deducted, (v) all accounts with respect
        to which goods are placed on consignment, guaranteed sale or other terms
        by
        reason of which the payment by the account debtor may be conditional, (vi)
        the
        amount billed for or representing retainage, if any, until all prerequisites
        to
        the immediate payment of retainage have been satisfied, (vii) the amount
        of all
        revenue arising from freight charges derived from freight in transit (i.e.,
        freight picked up and not yet invoiced), (viii) all such accounts owed by
        account debtors which are known to any officer of any Company, Administrative
        Agent or any Bank to be insolvent, (ix) all such accounts owing by Affiliates
        of
        a Company, (x) all accounts in which the account debtor is not a resident
        of the
        United States unless such accounts are supported by a letter of credit issued
        by
        a bank acceptable to Administrative Agent or by foreign credit insurance
        issued
        by a Person acceptable to Administrative Agent (xi) all accounts in which
        the
        account debtor is the United States or any department, agency or instrumentality
        of the United States, except to the extent acknowledgment of assignment to
        the
        Banks, specifically as security for the Obligations, of such account in
        compliance with the Federal Assignment of Claims Act and other applicable
        Law
        has been received by Administrative Agent, (xii) all accounts not evidenced
        by
        evidence of billing acceptable to the Required Banks, (xiii) all accounts
        evidenced by any note, trade acceptance, draft or other instrument or chattel
        paper, (xiv) any account which is not a valid, legally enforceable obligation
        of
        the account debtor thereunder, and (xv) all accounts in which Administrative
        Agent does not have a first priority, perfected Lien. 

       

      “Eligible
        Assignee” shall have the meaning set forth in Section 9.1(b)

       

      “ERISA”
shall
        have the meaning set forth in Section
        4.6.

       

      “Exhibits”
shall
        have the meaning set forth in Section
        9.10.

       

      “Existing
        Credit Documents”
means
        that certain Credit Agreement dated as of May 30, 2002 among Borrower, Parent,
        certain affiliates of Borrower, and Banks, as amended by (i) that certain
        First
        Amendment to Credit Agreement dated as of December 11, 2003, (ii) that certain
        Second Amendment to Credit Agreement dated as of June 30, 2004, (iii) that
        certain Third Amendment to Credit Agreement dated as of August 30, 2004,
        (iv)
        that certain Fourth Amendment to Credit Agreement dated as of April 15, 2005,
        (v) that certain Fifth Amendment to Credit Agreement dated as of March 31,
        2006,
        (vi) that certain Sixth Amendment to Credit Agreement dated as of May 17,
        2006,
        and (vii) that certain Seventh Amendment to Credit Agreement dated as of
        August
        14, 2006 (as amended to the date hereof, the “Existing
        Agreement”),
        together with the promissory notes made by Borrower thereunder.

       

      “Existing
        Indebtedness”
means
        all Indebtedness outstanding under the Existing Credit Documents on the date
        hereof.

       

      “Existing
        Letters of Credit”
means
        all letters of credit pursuant to the Existing Credit Documents that remain
        outstanding on the date hereof.

       

      “Federal
        Funds Rate”
means,
        for any day, the weighted average of the rates on overnight Federal funds
        transactions with members of the Federal Reserve System arranged by Federal
        funds brokers (“Overnight
        Transactions”)
        transacted on the immediately preceding Business Day, as published by the
        Federal Reserve Bank of New York, or, if such interest rate is not so published
        for any Business Day, the average of the per annum interest rate quotations
        for
        Overnight Transactions received by Comerica (or other applicable Bank referred
        to in the definition of “Base
        Rate”
for
        such Business Day from three Federal funds brokers of recognized standing
        selected by Comerica (or such other applicable Bank).

       

      “Financial
        Statements”
        includes, but is not necessarily limited to, balance sheets, profit and loss
        statements, reconciliations of capital and surplus, statements of cash flows
        prepared on a consolidated basis, and the footnotes thereto.

       

      “Financing
        Lease”
means
        any lease of property which shall, in accordance with GAAP, be capitalized
        on a
        balance sheet of a Company.

       

      “Fixed
        Charge Coverage Ratio”
shall
        have the meaning set forth in Section
        5.1(f).

       

      “Fixed
        Charges”
shall
        have the meaning set forth in Section
        5.1(f).

       

      “Funded
        Debt”
shall
        have the meaning set forth in Section
        5.1(k).

       

      “GAAP”
means
        accounting principles generally accepted in the United States of America,
        applied on a consistent basis, set forth in authoritative pronouncements
        issued
        by the American Institute of Certified Public Accounts, the Financial Accounting
        Standards Board, the Securities and Exchange Commission, the International
        Accounting Standards Board, and any other comparable body, which are applicable
        in the circumstances as of the date in question, and the requisite that such
        principles are applied on a consistent basis means that the accounting
        principles observed in a current period are comparable in all material respects
        to those applied in a preceding period.

       

      “Governmental
        Requirement”
means
        any Law, statute, code, ordinance, order, rule, regulation, judgment, decree,
        injunction, franchise, permit, certificate, license, authorization or other
        directive or requirement of any federal, state, county, municipal, parish,
        or
        other Tribunal or any department, commission, board, court, agency or any
        other
        instrumentality of any of them.

       

      “Group
        Member”
means
        any Person which is a member with any Company in an “affiliated service group”
as defined in Section
        414(m)
        of the
        IRC, a “controlled group of corporations” as defined in Section
        1563
        of the
        IRC, or any “trades or businesses . . . which are under common control” as
        defined by Section
        414(c)
        of the
        IRC.

       

      “Guaranty
        Agreement”
means
        a
        guaranty agreement, in form and substance satisfactory to the Banks, pursuant
        to
        which a Company (other than Borrower) guarantees prompt payment and performance
        of the Obligations, and “Guaranty
        Agreements”
means
        all of such agreements.

       

      “Guarantee”
of
        or
        by any Person (the “guarantor”) means any obligation, contingent or otherwise,
        of the guarantor guaranteeing or having the economic effect of guaranteeing
        any
        Indebtedness or other obligation of any other Person (the “primary obligor”) in
        any manner, whether directly or indirectly, and including any obligation
        of the
        guarantor, direct or indirect, (a) to purchase or pay (or advance or supply
        funds for the purchase or payment of) such Indebtedness or other obligation
        or
        to purchase (or to advance or supply funds for the purchase of) any security
        for
        the payment thereof, (b) to purchase or lease property, securities or services
        for the purpose of assuring the owner of such Indebtedness or other obligation
        of the payment thereof, (c) to maintain working capital, equity capital or
        any
        other financial statement condition or liquidity of the primary obligor so
        as to
        enable the primary obligor to pay such Indebtedness or other obligation or
        (d)
        as an account party in respect of any letter of credit or letter of guaranty
        issued to support such Indebtedness or obligation; provided, that the term
        Guarantee shall not include endorsements for collection or deposit in the
        ordinary course of business.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Hazardous
        Materials”
means
        “hazardous substances,” “hazardous waste” or “hazardous constituents” in CERCLA,
        RCRA or any other federal, state or local environmental statute or
        regulation.

       

      “Hedge
        Agreement”
means,
        with respect to Borrower or any other Company, any and all transactions,
        agreements, documents, or arrangements between Borrower or any other Company
        and
        one or more Banks, now existing or hereafter entered into, which provide
        for an
        interest rate, credit, commodity, or equity swap, cap, floor, collar, forward
        foreign exchange transaction, currency swap, cross currency rate swap, currency
        option, or any combination of, or option with respect to, these or other
        similar
        transactions, for the purpose of hedging exposure to fluctuations in interest
        or
        exchange rates, loan, credit exchange, security, or currency valuations,
        or
        commodity prices or other similar risks.

       

      “Highest
        Lawful Rate”
means,
        with respect to any Bank, the maximum non-usurious interest rate, if any,
        that
        at any time or from time to time may be contracted for, taken, reserved,
        charged
        or received with respect to the particular Obligations as to which such rate
        is
        to be determined, payable to such Bank pursuant to this Agreement or any
        other
        Loan Paper, under Laws applicable to such Bank which are presently in effect
        or,
        to the extent allowed by law, under such applicable Laws which may hereafter
        be
        in effect and which allow a higher maximum non-usurious interest rate than
        applicable Laws now allow. The Highest Lawful Rate shall be calculated in
        a
        manner that takes into account any and all fees, payments and other charges
        in
        respect of the Loan Papers that constitute interest under applicable Law.
        Each
        change in any interest rate provided for herein based upon the Highest Lawful
        Rate resulting from a change in the Highest Lawful Rate shall take effect
        without notice to Borrower or any other Person at the time of such change
        in the
        Highest Lawful Rate. For purposes of determining the Highest Lawful Rate
        under
        Texas law, the applicable rate ceiling shall be the weekly rate ceiling
        described in, and computed in accordance with, Sections
        303.003
        and
303.009
        of the
        Texas Finance Code, as amended and in effect from time to time, or any successor
        or replacement statute; provided,
        however,
        that,
        to the extent permitted by applicable Law, Administrative Agent shall have
        the
        right to change the applicable rate ceiling from time to time in accordance
        with
        applicable Law.

       

      “Indebtedness”
of
        any
        Person means, without duplication, (a) all obligations of such Person for
        borrowed money or with respect to deposits or advances of any kind, (b) all
        obligations of such Person evidenced by bonds, debentures, notes or similar
        instruments, (c) all obligations of such Person upon which interest charges
        are
        customarily paid, (d) all obligations of such Person under conditional sale
        or
        other title retention agreements relating to property acquired by such Person,
        (e) all obligations of such Person in respect of the deferred purchase price
        of
        property or services (excluding trade accounts payable incurred in the ordinary
        course of business which are not more than 90 days past due), (f) all
        obligations secured by (or for which the holder of such obligations has an
        existing right, contingent or otherwise, to be secured by) any Lien on property
        owned or acquired by such Person, whether or not the obligations secured
        thereby
        have been assumed, (g) all Guarantees by such Person of Indebtedness of others,
        (h) all obligations of such Person under Financing Leases, (i) all obligations,
        contingent or otherwise, of such Person in respect of letters of credit,
        letters
        of guaranty, bankers’ acceptances, surety or other bonds and similar
        instruments, (j) all liabilities of such Person in respect of unfunded vested
        benefits under any Plan, and (k) payment obligations with respect to Hedge
        Agreements, provided that for purposes of this definition, the amount of
        the
        obligation of any Person under any Hedge Agreement shall be the amount
        determined, in respect thereof as of the end of the most recently ended fiscal
        quarter of such Person, based on the assumption that such Hedge Agreement
        has
        terminated at the end of such fiscal quarter, and in making such determination,
        if such Hedge Agreement provides for the netting of amounts payable by and
        to
        each party thereto or if any Hedge Agreement provides for the simultaneous
        payment of amounts by and to each party, then in each such case, the amount
        of
        such obligation shall be the net amount so determined; provided, however,
        that
        notwithstanding the foregoing, Indebtedness shall not include deposits, escrows
        or bonds of such Person pursuant to an independent contractor agreement not
        to
        exceed $2,500,000 in the aggregate at any time. The Indebtedness of any Person
        shall include the Indebtedness of any other entity (including any partnership
        in
        which such Person is a general partner) to the extent such Person is liable
        therefor as a result of such Person’s ownership interest in or other
        relationship with such entity, except to the extent the terms of such
        Indebtedness provide that such Person is not liable therefor.

       

      “Interest
        Period”
means,
        with respect to any LIBOR Loan, a period commencing: (i) on any date upon
        which,
        pursuant to a Notice of Activity or otherwise pursuant to the provisions
        of this
        Agreement, the principal amount of such LIBOR Loan begins to accrue interest
        at
        the LIBOR Rate plus the LIBOR Rate Margin, or (ii) on the last day of the
        immediately preceding Interest Period, in the case of a Continuation to a
        successive Interest Period, and ending one (1), two (2), three (3) or six
        (6)
        months thereafter as Borrower shall elect in accordance with the provisions
        of
Section
        2.9;
        provided, that: (A) any Interest Period which would otherwise end on a day
        which
        is not a LIBOR Business Day shall be extended to the next succeeding LIBOR
        Business Day, unless such LIBOR Business Day falls in another calendar month,
        in
        which case such Interest Period shall end on the next preceding LIBOR Business
        Day; (B) any Interest Period which begins on the last LIBOR Business Day
        of a
        calendar month (or a day for which there is no numerically corresponding
        day in
        the calendar month at the end of such Interest Period) shall, subject to
        clause
        (A) above, end on the last LIBOR Business Day of the appropriate subsequent
        calendar month, and (C) any Interest Period that would otherwise end after
        the
        Termination Date shall end on the Termination Date.

       

      “IRC”
shall
        mean the Internal Revenue Code of 1986, as amended.

       

      “Issuing
        Bank”
means
        Comerica, in its capacity as the issuer of Letters of Credit hereunder, and
        its
        successors in such capacity as provided in Section
        2.14(g).

       

      “Laws”
means
        any and all applicable laws, statutes, ordinances, rules, regulations, orders,
        writs, injunctions, and/or decrees of the United States, any state or
        commonwealth, any territory or possession, any foreign country, or any
        Tribunal.

       

      “Letter
        of Credit”
shall
        have the meaning assigned to such term in Section
        2.14.

       

      “Letter
        of Credit Liabilities”
means,
        at any time, the aggregate undrawn face amounts of all outstanding Letters
        of
        Credit and all Reimbursement Obligations.

       

      “Leverage
        Ratio”
shall
        have the meaning set forth in Subsection
        5.1(k).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “LIBOR
        Business Day”
shall
        mean a day on which dealings in Dollars are carried out in the London Inter-Bank
        Eurocurrency market.

       

      “LIBOR
        Loan”
means
        a
        Loan that bears interest at the LIBOR Rate plus the LIBOR Rate
        Margin.

       

      “LIBOR
        Rate”
as
        applied to any LIBOR Loan made by any Bank hereunder, shall mean the quotient
        of
        (i) the rate per annum (rounded upwards, if necessary, to the nearest
        1/16th
        of 1%)
        determined by Administrative Agent, by reference to Telerate page 3750 (or
        any
        successor page) or otherwise, to be the rate offered to Comerica at
        approximately 11:00 a.m. London time (or as soon thereafter as practicable)
        two
        Business Days prior to the first day of such Interest Period by leading banks
        in
        the London interbank market of U.S. Dollar deposits in immediately available
        funds having a term comparable to such Interest Period and in an amount
        comparable to the principal amount of the LIBOR Loan applicable to Comerica
        to
        which such Interest Period relates divided by (ii) the remainder of (A) 1.00
        minus (B) the LIBOR Reserve Percentage applicable to such LIBOR Loan. The
        determination by Administrative Agent of the LIBOR Rate shall, in the absence
        of
        manifest error, be conclusive.

       

      “LIBOR
        Rate Margin”
shall
        have the meaning set forth in Section
        2.4(b)(ii).

       

      “LIBOR
        Reserve Percentage”
shall
        mean, with respect to each Interest Period, a percentage (expressed as a
        decimal) equal to the daily average during such Interest Period of the
        percentages in effect on each day of such Interest Period, as prescribed
        by the
        Board of Governors of the Federal Reserve System (or any successor), for
        determining reserve requirements applicable to “eurocurrency liabilities”
pursuant to Regulation D or any other then applicable regulation of the Board
        of
        Governors (or any successor) which prescribes reserve requirements applicable
        to
“eurocurrency liabilities,” as presently defined in Regulation D, or any
        eurocurrency funding. Without limiting the effect of the foregoing, the LIBOR
        Reserve Percentage shall reflect any other reserves required to be maintained
        by
        such member banks by reason of any change in laws against any category of
        liabilities which includes deposits by reference to which the LIBOR Rate
        is to
        be determined or any category of extensions of credit or other assets which
        include LIBOR Loans.

       

      “Lien”
means
        any security interest, mortgage, pledge, lien, claim, charge, encumbrance,
        title
        retention agreement, lessor’s interest under a Financing Lease or analogous
        instrument, in, of or on any of the Companies’ property (or any other Person’s
        property if the context so requires).

       

      “Litigation”
means
        any proceeding, claim, lawsuit and/or investigation conducted or threatened
        by
        or before any Tribunal, including, but not limited to, proceedings, claims,
        lawsuits and/or investigations under or pursuant to any environmental,
        occupational safety and health, antitrust, unfair competition, securities,
        taxation or other Law, or under or pursuant to any contract, agreement or
        other
        instrument.

       

      “Litigation
        Schedule”
shall
        have the meaning set forth in Section
        4.3.

       

      “Loans”
shall
        have the meaning set forth in Section
        2.1.

       

      “Loan
        Papers”
means
        this Agreement, the Notes, the Guaranty Agreements and any and all certificates,
        mortgages, deeds of trust, security agreements and other documents and
        agreements executed and/or delivered in connection with the making of Loans
        or
        the issuing of Letters of Credit or otherwise pursuant to the terms of this
        Agreement and any future amendments and supplements thereto and restatements
        thereof.

       

      “Margin
        Regulations”
means
        Regulations T, U and X of the Board of Governors of the Federal Reserve System,
        as in effect from time to time.

       

      “Margin
        Stock”
means
        “margin stock” as defined in Regulation U of the Board of Governors of the
        Federal Reserve System, as in effect from time to time.

       

      “Material
        Adverse Effect”
means
        any effect which might reasonably be expected to be material and adverse
        to the
        financial condition or business operations of the Companies as a whole on
        a
        consolidated basis. 

       

      “Net
        Income”
means,
        for any period and any Person, the sum of the following calculated without
        duplication: (a) such Person’s consolidated net income (or loss) determined in
        conformity with GAAP; minus
        (b)
        nonrecurring, extraordinary gains, including, without limitation, any
        nonrecurring death benefits under life insurance policies.

       

      “New
        Entity”
shall
        have the meaning set forth in Section
        9.14.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Notes”
means
        the Revolving Credit Notes.

       

      “Notice
        of Activity”
means
        the written notice given by Borrower to Administrative Agent of a Advance,
        Conversion, Continuation or issuance of a Letter of Credit, which shall be
        substantially in the form of Exhibit
        B
        attached.

       

      “Obligations”
means
        all present and future obligations and liabilities, and all renewals and
        extensions thereof, or any part thereof, of Borrower or any other Company
        to any
        one or more of the Agents and/or any one or more of the Banks and created
        or
        evidenced by or existing or arising out of or pursuant to this Agreement,
        the
        Revolving Credit Notes or any one or more of the other Loan Papers (including,
        without limitation, the Principal Obligation, the Reimbursement Obligation
        arising pursuant to any Letters of Credit, and all other indebtedness,
        obligations, fees and liabilities arising pursuant to this Agreement, or
        otherwise) and pursuant to or under any Hedge Agreement that Borrower or
        any
        other Company may enter into with the express written consent of Administrative
        Agent and the Required Banks, and all interest accruing thereon and costs,
        expenses and attorneys’ fees incurred in the enforcement or collection thereof,
        regardless of whether such obligations and liabilities are direct, indirect,
        fixed, contingent, liquidated, unliquidated, joint, several, or joint and
        several, including, but not limited to, the obligations and liabilities arising
        pursuant to any of the Loan Papers, and all renewals and extensions thereof,
        or
        any part thereof, and all present and future amendments thereto.

       

      “Operating
        Rights”
means
        the operating rights, franchises, certificates, authorizations, permits and
        licenses of Borrower and the other Companies.

       

      “Orderly
        Liquidation Value”
with
        respect to each Vehicle, means (a) with respect to any Vehicle acquired after
        the Closing Date, the Purchase Price of such Vehicle, which amount shall
        be
        reduced each month by an amount equal to 1% of the Purchase Price of such
        Vehicle as previously so reduced, to reflect depreciation, until such time
        as a
        Vehicle Appraisal for such Vehicle shall have been delivered to Collateral
        Agent
        or Administrative Agent, and thereafter the orderly liquidation value attributed
        to such Vehicle in the most recent Vehicle Appraisal for such Vehicle; and
        (b)
        with respect to any other Vehicle, the orderly liquidation value attributed
        to
        such Vehicle in the most recent Vehicle Appraisal. Notwithstanding the
        foregoing, the term “Orderly
        Liquidation Value”
shall
        not include the value of any Vehicle which is no longer owned by a Company
        or
        which has been (i) destroyed, confiscated by a governmental authority, stolen,
        or lost, or (ii) restricted from use, attached by legal process, or immobilized
        due to lack of repair for a period of forty-five (45) consecutive calendar
        days.

       

      “Other
        Subsidiary”
means
        any Person of which an aggregate of 50% or more of the issued and outstanding
        voting stock, or 50% or more of the equity interests, at the time at which
        any
        determination is being made, is owned of record or beneficially, directly
        or
        indirectly, by any Company.

       

      “Outstanding
        Revolving Credit”
means,
        at any particular time, the sum of (a) the aggregate outstanding principal
        amount of the Loans, plus
        (b) all
        Letter of Credit Liabilities.

       

      “Parent”
means
        Frozen Food Express Industries, Inc., a Texas corporation.

       

      “Permitted
        Investments”
means
        investments in (i) indebtedness, evidenced by notes maturing not more than
        one
        hundred eighty (180) days after the date of issue, issued or guaranteed by
        the
        federal government of the United States of America, or any agency thereof,
        (ii)
        certificates of deposit, maturing not more than one hundred eighty (180)
        days
        after the date of issue, issued by commercial banking institutions, each
        of
        which is a member of the Federal Reserve System and which has combined capital
        and surplus and undivided profits of not less than $100,000,000.00, or any
        other
        financial institution if the amount on deposit is fully insured by The Federal
        Deposit Insurance Corporation, (iii) commercial paper, maturing not more
        than
        one hundred eighty (180) days after the date of issue, issued by a corporation
        (other than an Affiliate of the Companies) with a rating of “P-1” (or its then
        equivalent) according to Moody’s Investors Service, Inc., “A-1” (or its then
        equivalent) according to Standard & Poor’s Corporation or “F-1” (or its then
        equivalent) according to Fitch’s Investors Service, Inc., or issued by any Bank
        with a rating of “P-3” (or its then equivalent) according to Moody’s Investors
        Service Inc., or “A-3” (or its then equivalent) according to Standard &
Poor’s Corporation, (iv) money market funds that invest only in securities which
        mature within one (1) year after the date of purchase and which have ratings
        meeting the standard of (iii) above, or (v) securities issued or guaranteed
        by
        an agency of the United States of America.

       

      “Permitted
        Liens”
means
        with respect to any asset or property (or any interest therein),

       

      a.  Liens
        (if
        any) securing the Notes in favor of Administrative Agent, Collateral Agent
        and/or the Banks;

       

      b.  The
        following, if the validity and amount thereof are being contested in good
        faith
        and by appropriate legal proceedings and so long as (i) levy and execution
        thereon have been stayed and continue to be stayed, (ii) they do not in the
        aggregate materially detract from or threaten the value of the asset or
        property, or materially impair the use thereof in the operation of any Company’s
        business, and (iii) a reserve therefor, if appropriate, has been established
        in
        accordance with GAAP: claims and Liens for taxes due and payable; claims
        and
        Liens upon and defects of title to real and personal property, including
        any
        attachment of personal or real property or other legal process prior to
        adjudication of a dispute on the merits; claims and Liens of mechanics,
        materialmen, warehousemen, landlords or carriers, or similar Liens; and adverse
        judgments on appeal;

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      c.  Liens
        for
        taxes not past due;

       

      d.  Mechanics’,
        materialmen’s, warehousemen’s, landlords’ or carriers’ Liens for services or
        materials for which payment is not past due;

       

      e.  Liens
        in
        favor of the lessor on the assets being leased under any operating lease
        or
        Financing Lease;

       

      f.  Encumbrances
        consisting of minor easements, zoning restrictions, or other restrictions
        on the
        use of real property that do not (individually or in the aggregate) materially
        affect the value of the assets encumbered thereby or materially impair the
        ability of Borrower or the other Companies to use such assets in their
        respective businesses, and none of which is violated in any material respect
        by
        existing or proposed structures or land use;

       

      g.  Liens
        resulting from good faith deposits to secure payments of workmen’s compensation
        or other social security programs or to secure the performance of tenders,
        statutory obligations, surety and appeal bonds, bids, and contracts (other
        than
        for payment of borrowed money); and

       

      h.  Liens
        at
        any time existing on up to fifty (50) tractors and fifty (50) trailers that
        are
        purchased for a nominal amount from vehicle vendors and that are required
        to be
        sold by the owner back to such vendors for a nominal amount (collectively,
        “Demo
        Vehicles”).

       

      “Person”
means
        any individual, firm, corporation, association, partnership, joint venture,
        trust, other entity or Tribunal.

       

      “Plan”
means
        all (present, prior (including terminated and transferred) and future) plans,
        programs agreements, arrangements and methods of contribution or compensation
        providing any remuneration or benefits other than current cash compensation
        to
        any current or former employee of any Company or any other Group Member or
        to
        any other Person who provides services to any Company or any other Group
        Member
        whether or not subject to ERISA; and includes, but is not limited to, pension,
        retirement, profit sharing, stock bonus, nonqualified deferred compensation,
        disability, medical, dental, workers compensation, health insurance, life
        insurance, incentive plans, vacation benefits and fringe benefits.

       

      “Potential
        Default”
means
        the occurrence of an event or condition that with notice or lapse of time
        would
        become a Default.

       

      “Principal
        Obligation”
means,
        as of the date of any determination thereof, the aggregate unpaid principal
        balance of all Loans and Reimbursement Obligations made by any Bank up to
        the
        time in question.

       

      “Pro
        Rata Share”
means,
        with respect to each Bank and from time to time, an amount equal to the quotient
        obtained by dividing such Bank’s Commitment by the aggregate amount of the
        Commitments or, if all the Commitments are terminated, the quotient obtained
        by
        dividing such Bank’s outstanding Loans by the aggregate outstanding Loans of all
        Banks.

       

      “Purchase
        Price”
means,
        in the case of a Vehicle, the bona fide price which the purchaser actually
        pays
        to the seller for such Vehicle, including (i) trade-in allowance, (ii) seller’s
        delivery and handling charges; (iii) excise tax on the Vehicle; (iv) any
        sales
        and use tax; (v) freight charges; and (vi) other expenses required to effect
        delivery of the Vehicle to the purchaser.

       

      “Quarterly
        Payment Date”
means
        the last Business Day of each March, June, September and December.

       

      “RCRA”
means
        the Resource Conservation and Recovery Act of 1976, as amended by the Used
        Oil
        Recycling Act of 1980, the Solid Waste Disposal Act Amendments of 1980, and
        the
        Hazardous and Solid Waste Amendments of 1984, as the same may be amended
        from
        time to time.

       

      “Regulatory
        Change”
means,
        with respect to any Bank, any change after the Closing Date in any U.S. federal
        or state, or any foreign, Laws or regulations or the adoption or making after
        such date of any interpretations, directives or requests applying to a class
        of
        lenders including such Bank of or under any U.S. federal or state, or any
        foreign, Laws or regulations (whether or not having the force of law) by
        any
        Tribunal charged with the interpretation or administration thereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Reimbursement
        Obligation”
shall
        have the meaning assigned to such term in Section
        2.14(d).

       

      “Reportable
        Event”
has
        the
        meaning assigned to that term in Title IV of ERISA.

       

      “Required
        Banks”
means,
        as of the date of any determination thereof, any two or more of the Banks,
        that
        hold, in the aggregate, sixty-six and two-thirds of one percent (66-2/3%)
        or
        more of the sum of the Principal Obligation then outstanding plus
        the
        aggregate face amount of the Letters of Credit then outstanding, or, if no
        Principal Obligation or Letter of Credit is then outstanding, any two or
        more of
        the Banks, that hold, in the aggregate, sixty-six and two-thirds of one percent
        (66-2/3%) or more of the Commitments. For purposes of this definition, the
        effects of rounding to the nearest cent shall not be taken into
        account.

       

      “Revolving
        Credit Notes”
shall
        have the meaning set forth in Section
        2.2,
        and
“Revolving
        Credit Note”
shall
        mean any of such promissory notes.

       

      “Schedules”
shall
        have the same meaning set forth in Section
        9.10.

       

      “Section(s)”
shall
        have the meaning set forth in Section
        9.10.

       

      “Security
        Agreements”
means

        (a) security agreements, pledge agreements and other agreements, documents
        or
        instruments executed by the Borrower, Parent or any Subsidiary dated the
        Closing
        Date (or such other date as any such Person may execute such Security
        Agreement), (b) any such agreement, document or instrument at any time executed
        pursuant to Section
        3.1(a)
        hereof,
        evidencing or creating a Lien as security for the Obligations and in form
        and
        substance reasonably satisfactory to Administrative Agent and Collateral
        Agent,
        and (c) any and all amendments, modifications, supplements, renewals,
        extensions, restatements or replacements thereof.

       

      “Solvent”
means,
        as to any Person, that (a) the aggregate fair market value of its assets
        exceeds
        its liabilities, (b) it has sufficient cash flow to enable it to pay its
        Indebtedness as such Indebtedness matures, and (c) it does not have unreasonably
        small capital to conduct its business.

       

      “Stubbs
        Group”
means
        any one or more of the following Persons: Stoney M. Stubbs, Jr., Julia B.
        Stubbs, Timothy L. Stubbs, Julia S. Howard, Roger D. Howard, J. Bain Howard
        Trust, Jackson R. Howard Trust, Stubbs Family Partnership, Ltd., Stubbs II
        Family Partnership, Ltd., S. Russell Stubbs, D. Dawn Stubbs, S. Reese Stubbs
        Trust, J. Corby Hill Stubbs Trust, Zachary M. Custer Trust, Benjamin L. Custer
        Trust, John D. Prickett, Lucile E. Prickett, Hannah Van Zandt Ashe Trust,
        Barbara L. Stubbs, Mary Weller Cates Trust, Edgar O. Weller, Melaine A. Weller,
        Sarah M. Daniel, Lucile B. Fielder, Weller Investment, Ltd., Frances E. Fielder
        TXUGMA, Kiirstin L. Daniel TXUGMA, Arthur L. Daniel, Jr., and D & R Stubbs
        Management LLC.

       

      “Subsidiaries”
means
        FFE, Borrower, Conwell, FX, LML, Express, Cartage, Middleton, Logistics,
        CPI and
        Conwell LLC, and shall also mean and include any New Entity which has executed
        and delivered a Guaranty Agreement and letter as provided in Section
        9.14
        and has
        not been released or otherwise discharged from its obligations
        thereunder.

       

      “Syndication
        Agent”
means
        LaSalle Bank National Association in its capacity as syndication agent for
        the
        Banks under this Agreement, and its successors and assigns in such
        capacity.

       

      “Taxes”
means
        any and all present and future taxes, levies, imposts, deductions, withholdings,
        assessments, fees or other charges from time to time or at any time imposed
        by
        any Laws or by any Tribunal (excluding taxation of the income of the
        Banks).

       

      “Termination
        Date”
        shall
        mean June 1, 2010, or such earlier date upon which the obligation of the
        Banks
        to make Loans is terminated pursuant to the terms of this
        Agreement.

       

      “Tribunal”
means
        any state, commonwealth, federal, foreign, territorial, or other court or
        governmental department, commission, board, bureau, agency or
        instrumentality.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      “Type”
means
        any type of Loan (i.e., Base Rate Loan or LIBOR Loan).

       

      “Vehicle
        Appraisal”
means
        an appraisal of any or all of the Vehicles, performed on behalf of the
        Administrative Agent or the Collateral Agent and the Banks, by an appraisal
        firm
        reasonably satisfactory to the Administrative Agent and the Collateral Agent,
        dated a recent date satisfactory to the Administrative Agent and the Collateral
        Agent and in all respects satisfactory to the Administrative Agent and the
        Collateral Agent in their respective sole and absolute discretion.

       

      “Vehicles”
means
        any and all of the following, whether now owned or hereafter acquired by
        Parent,
        Borrower, or any Subsidiary: (a) all tractors and trailers registered in
        accordance with any Law for public roadway use in the operation of Parent’s,
        Borrower’s or any Subsidiary’s motor carrier business, and (b) all equipment and
        accessories permanently attached to any such Vehicles, including without
        limitation all refrigeration units, tires and tubes; provided, that (i)
“Vehicles”
shall
        include such equipment and accessories only so long as they are so permanently
        attached and shall not include any spare parts inventory; (ii) Vehicles shall
        not include any such property described in the foregoing clauses (a) and
        (b)
        that (1) is leased to any Company by any Person other than another Company,
        (2)
        is a vehicle which is intended for use, and is in fact used, solely on location
        at Parent’s, Borrower’s or any Subsidiary’s place of business (commonly known as
“yard hosses”), (3) constitutes “inventory” as such term is defined in Chapter 9
        of the Code, or (4) is a Demo Vehicle.

       

      “Vehicle
        Collateral”
means,
        collectively, all of the Vehicles which are included in the
        Collateral.

       

      “W&B
        Note”
means
        that certain Subordinated Term Note dated as of December 26, 2001, made by
        W&B Service Company, LP, f/k/a W&B Newco, L.P., payable to the order of
        FX in the original principal amount of $4,134,785.00, and all renewals,
        extensions, amendments, modifications, replacements, substitutions and
        rearrangements thereof.

       

      “Weller
        Group”
means
        any one or more of the following Persons: Weller Investment, Ltd., Sarah
        M.
        Daniel, Lucile B. Fielder, and the Edgar O. Weller Family Trust.

       

      Section
        1.2  UCC
        Changes

       

      All
        terms
        used herein which are defined in the UCC shall, unless otherwise provided,
        have
        the meanings ascribed to them in the UCC both as in effect on the date of
        this
        Agreement and as hereafter amended. The parties intend that the terms used
        herein which are defined in the UCC have, at all times, the broadest and
        most
        inclusive meanings possible. Accordingly, if the UCC shall in the future
        be
        amended or held by a court to define any term used herein more broadly or
        inclusively than the UCC in effect on the date of this Agreement, then such
        term
        as used herein shall be given such broadened meaning. If the UCC shall in
        the
        future be amended or held by a court to define any term used herein more
        narrowly, or less inclusively, than the UCC in effect on the date of this
        Agreement, such amendment or holding shall be disregarded in defining terms
        used
        in this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      ARTICLE
        II

      AMOUNTS
        AND TERMS OF CREDIT COMMITMENTS

       

      Section
        2.1  Commitments.

       

      (a)  Loans.
        Subject
        to the terms and conditions of this Agreement (including, without limitation,
        Section
        2.13),
        each
        Bank severally agrees to make one or more revolving credit loans to Borrower
        from time to time from and including the Closing Date to but excluding the
        Termination Date in an aggregate principal amount outstanding not to exceed
        the
        positive remainder of (i) the amount of such Bank’s Commitment as then in
        effect, minus
        (ii)
        such Bank’s Pro Rata Share of the Letter of Credit Liabilities then outstanding
        (such revolving credit loans referred to in this Section
        2.1(a)
        now or
        hereafter made by the Banks to Borrower from and including and after the
        Closing
        Date are hereinafter collectively called the “Loans”);
        provided,
        however,
        that
        (a) the Outstanding Revolving Credit shall not at any time exceed the lesser
        of
        (i) the Borrowing Base then most recently determined, or (ii) the aggregate
        amount of the Commitments, and (b) the amount of Borrowing Base Availability
        shall not at any time be less than $5,000,000. If any Loan would cause Borrowing
        Base Availability to be less than $5,000,000, no Bank shall be obligated
        to make
        such Loan unless and until the Companies shall have caused the perfection
        of the
        Lien of Collateral Agent, for the benefit of the Banks, in Vehicles having
        an
        aggregate Orderly Liquidation Value such that Borrowing Base Availability
        is at
        all times equal to or greater than $5,000,000, pursuant to documentation
        satisfactory to Collateral Agent and Required Banks as provided in Section
        5.1(r).
        Subject
        to the foregoing limitations and the other terms and conditions of this
        Agreement, Borrower may borrow, repay and re-borrow the Loans hereunder prior
        to
        the Termination Date. The Borrowing Base shall be determined in good faith
        by
        Administrative Agent in connection with the delivery of the Borrowing Base
        Report to be delivered in accordance with Section 5.1(l),
        subject
        to Administrative Agent’s right to re-determine the Borrowing Base in accordance
        with the immediately succeeding sentence. In addition, the Borrowing Base
        may be
        re-determined at any time and from time to time by Administrative Agent in
        good
        faith upon the occurrence and during the continuation of a Potential
        Default.

       

      (b)  Continuation
        and Conversion of Loans.
        Subject
        to the terms of this Agreement, Borrower may borrow the Loans as Base Rate
        Loans
        or LIBOR Loans and Borrower may Continue LIBOR Loans or Convert Loans of
        one
        Type into Loans of the other Type.

       

      (c)  Lending
        Offices.
        Loans
        of each Type made by each Bank shall be made and maintained at such Bank’s
        Applicable Lending Office for Loans of such Type.

       

      Section
        2.2  The
        Notes

       

      The
        Loans
        made by each Bank shall be evidenced by a single promissory note (each a
        “Revolving
        Credit Note”)
        of
        Borrower in substantially the form of Exhibit
        C
        hereto,
        dated the Closing Date, payable to the order of such Bank in a principal
        amount
        equal to its Commitment as originally in effect, and otherwise duly completed.
        Each Bank is hereby authorized by Borrower to endorse on the schedule (or
        a
        continuation thereof) attached to each Note of such Bank, to the extent
        applicable, the date, amount and Type of and the Interest Period (if applicable)
        for each Loan made by such Bank to Borrower and the amount of each payment
        or
        prepayment of principal of such Loan received by such Bank, provided that
        any
        failure by such Bank to make any such endorsement shall not affect the
        obligations of Borrower, Parent or any other Subsidiary under such Note or
        this
        Agreement in respect of such Loan.

       

      Section
        2.3  Repayment
        of Loans

       

      Borrower
        shall pay the outstanding principal amount on all Loans on the Termination
        Date.
        If any payment of principal becomes due and payable on a day other than a
        Business Day, the maturity thereof shall be extended to the next succeeding
        Business Day and interest shall be payable at the then applicable rate during
        such extension.

       

      Section
        2.4  Interest
        and Fees.

       

      (a)  Interest
        Rate.
        Borrower shall pay to the Administrative Agent for the account of each Bank
        interest on the unpaid principal amount of each Loan made by such Bank for
        the
        period commencing on the date of such Loan to but excluding the date such
        Loan
        is due, at a fluctuating rate per annum equal to the Applicable Rate. The
        term
“Applicable
        Rate”
means
        (i) with respect to Base Rate Loans outstanding from day to day, the lesser
        of
        (A) the Highest Lawful Rate or (B) the Base Rate plus
        the Base
        Rate Margin and (ii) with respect to LIBOR Loans outstanding from day to
        day,
        the lesser of (A) the Highest Lawful Rate or (B) the LIBOR Rate plus
        the
        LIBOR Rate Margin. Notwithstanding the foregoing, subject to Section
        9.19,
        (1) all
        principal outstanding after the occurrence of a Default which has not been
        cured
        to the satisfaction of the Administrative Agent and the Required Banks or
        waived
        in writing by the Administrative Agent and the Required Banks shall bear
        interest at the Default Rate, which shall be due and payable on demand, and
        (2)
        past due principal, interest, fees and other amounts shall bear interest at the
        Default Rate, which shall be payable on demand. The term “Default
        Rate”
means
        a
        rate per annum equal to (i) in the case of principal of any Loan, the lesser
        of
        (A) the Highest Lawful Rate, or (B) 2% plus the rate otherwise applicable
        to
        such Loan as provided above, or (ii) in the case of any other amount, including
        interest and fees, 2% plus the rate applicable to Base Rate Loans as provided
        above.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)  Determinations
        of Margins and Fees.
        The
        margins identified in Section
        2.4(a)
        and the
        fees payable under Section
        2.11
        shall be
        defined and determined as follows:

       

      (i) “Base
        Rate Margin”
shall
        mean during each period from and including one Adjustment Date to but excluding
        the next Adjustment Date (herein a “Calculation
        Period”),
        the
        percent per annum set forth in the table below under the heading “Base
        Rate Margin”
and
        opposite the Leverage Ratio which corresponds to the Leverage Ratio set forth
        in, and as calculated in accordance with, the applicable Compliance
        Certificate.

       

      (ii) “LIBOR
        Rate Margin”
shall
        mean during each Calculation Period, the percent per annum set forth in the
        table below under the heading “LIBOR
        Rate Margin”
and
        opposite the Leverage Ratio which corresponds to the Leverage Ratio set forth
        in, and as calculated in accordance with, the applicable Compliance
        Certificate.

       

      
        	
                 

                 

                Tier

              	
                 

                 

                Leverage
                  Ratio

              	
                 

                LIBOR

                Rate

                Margin

              	
                Base

                Rate

                Margin

              	
                L/C
                  Fee Rate

              
	
                I

              	
                Greater
                  than or equal to 2.25

              	
                1.75%

              	
                -0.75%

              	
                1.50%

              
	
                II

              	
                Greater
                  than or equal to 1.75 but less than 2.25

              	
                1.50%

              	
                -0.75%

              	
                1.25%

              
	
                III

              	
                Greater
                  than or equal to 1.25 but less than 1.75

              	
                1.25%

              	
                -0.75%

              	
                1.00%

              
	
                IV

              	
                Less
                  than 1.25

              	
                0.825%

              	
                -0.75%

              	
                0.75%

              

      

      

      Commencing
        on the Effective Date of this Agreement, the Libor Rate Margin (for Interest
        Periods commencing thereafter) and the Base Rate Margin shall be the same
        as
        listed opposite the Tier IV Leverage Ratio on the table set forth above,
        but on
        the first Business Day after the delivery to the Administrative Agent of
        the
        Compliance Certificate for the period ending on September 30, 2006, the Libor
        Rate Margin (for Interest Periods commencing after such date of delivery)
        and
        the Base Rate Margin shall automatically be adjusted in accordance with the
        Leverage Ratio set forth in such Compliance Certificate and in the table
        set
        forth above. Then upon the delivery of each Compliance Certificate thereafter
        pursuant to this Agreement, commencing with the Compliance Certificate delivered
        as of the period ending December 31, 2006, the LIBOR Rate Margin (for Interest
        Periods commencing after the applicable Adjustment Date) and the Base Rate
        Margin shall automatically be adjusted in accordance with the Leverage Ratio
        set
        forth therein and the table set forth above, such automatic adjustment to
        take
        effect as of the first Business Day after the receipt by the Administrative
        Agent of the related Compliance Certificate (each such Business Day when
        such
        margins or fees change pursuant to this sentence or the next following sentence,
        herein an “Adjustment
        Date”).
        If
        Parent fails to deliver such Compliance Certificate which so sets forth the
        Leverage Ratio within the period of time required by this Agreement: (i)
        the
        LIBOR Rate Margin (for Interest Periods commencing after the applicable
        Adjustment Date) shall automatically be adjusted to 1.75% per annum; and
        (ii)
        the Base Rate Margin shall automatically be adjusted to minus
        0.75%,
        such automatic adjustment to take effect as of the first Business Day after
        the
        last day on which Parent was required to deliver the applicable Compliance
        Certificate in accordance with this Agreement and to remain in effect until
        subsequently adjusted in accordance herewith upon the delivery of such
        Compliance Certificate.

      

      (c)  Computation
        of Interest and Fees.
        Interest based on the Base Rate and, the LIBOR Rate and all fees shall be
        calculated on the basis of actual days elapsed, but computed as if each calendar
        year consisted of 360 days, subject to limitations of the Highest Lawful
        Rate.
        Each determination by Administrative Agent of the Base Rate and/or the LIBOR
        Rate shall, in the absence of manifest error, be conclusive and
        binding.

       

      (d)  Recapture
        of Interest Lost as a Result of Interest Limitations.
        If at
        any time the rate of interest applicable to any Loan exceeds the Highest
        Lawful
        Rate, the rate of interest which such Loan bears shall be limited to the
        Highest
        Lawful Rate, but, notwithstanding any subsequent reductions in the Applicable
        Rate, the rate of interest which such Loan bears shall not thereafter be
        reduced
        below the Highest Lawful Rate until such time as the total amount of interest
        accrued on such Loan equals the amount of interest which would have accrued
        if
        the Applicable Rate had at all times been in effect.

       

      (e)  Payment
        Dates.
        Accrued
        interest on the Loans shall be due and payable in arrears on the first Business
        Day of each calendar month and on the Termination Date.

       

      Section
        2.5  Borrowing
        Procedure

       

      Borrower
        shall give Administrative Agent notice of each borrowing of Loans hereunder
        in
        accordance with Section
        2.9.
        Not
        later than 12:00 noon (Dallas, Texas time) on the date specified for each
        Advance hereunder, each Bank will make available the amount of the Loan to
        be
        made by it on such date to Administrative Agent, at the Applicable Lending
        Office of Administrative Agent, in immediately available funds, for the account
        of Borrower. The amount so received by Administrative Agent shall, subject
        to
        the terms and conditions of this Agreement, be made available to Borrower
        promptly by wire transfer of immediately available funds to a deposit account
        .maintained by Borrower and reasonably acceptable to Administrative
        Agent.

       

      Section
        2.6  Optional
        Prepayments, Conversions and Continuations of Loans

       

      Subject
        to Section
        2.7,
        Borrower shall have the right from time to time to prepay the principal of
        the
        Loans, to Convert all or part of a Loan of one Type into a Loan of another
        Type
        or to Continue LIBOR Loans; provided that: (a) Borrower shall give
        Administrative Agent notice of each such prepayment, Conversion or Continuation
        as provided in Section
        2.9,
        (b)
        LIBOR Loans may only be Converted on the last day of the Interest Period,
        and
        (c) except for Conversions of LIBOR Loans into Base Rate Loans, no Conversions
        or Continuations shall be made while a Potential Default or Default has occurred
        and is continuing.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        2.7  Mandatory
        Prepayments.

       

      (a)  Loans.
        If at
        any time the Outstanding Revolving Credit exceeds an amount equal to the
        lesser
        of the aggregate Commitments then in effect or the Borrowing Base then most
        recently determined or redetermined, Borrower shall either (i) within one
        Business Day after the occurrence thereof, pay to Administrative Agent the
        amount of such excess as a prepayment of the Loans, or (ii) within ten (10)
        Business Days after the occurrence thereof, grant to the Collateral Agent,
        for
        the benefit of the Banks, a valid, perfected First Priority Lien in Vehicles
        having an aggregate Orderly Liquidation Value in an amount necessary to increase
        the Borrowing Base by the amount of such excess, subject to any and all
        limitations specified in the definition of “Borrowing Base”, pursuant to
        documentation satisfactory to the Collateral Agent and the Required Banks
        as
        provided in Section 5.1(r).

       

      (b)  Application
        of Mandatory Prepayments.
        Any
        prepayments hereunder shall be applied to the remaining Loans as set forth
        in
Section
        2.17.

       

      Section
        2.8  Minimum
        Amounts

       

      Except
        for Conversions pursuant to Sections
        2.22
        and
2.24,
        each
        Advance and each Conversion of principal of the Loans shall be in an amount
        at
        least equal to (a) $1,000,000 or an integral multiple of $100,000 in excess
        thereof with respect to LIBOR Loans or (b) $100,000 or an integral multiple
        of
        $100,000 in excess thereof with respect to Base Rate Loans (Advances,
        prepayments or Conversions of or into Loans of different Types or, in the
        case
        of LIBOR Loans, having different Interest Periods at the same time hereunder
        shall be deemed separate Advances, prepayments and Conversions for purposes
        of
        the foregoing, one for each Type or Interest Period). In addition to the
        foregoing requirements, there shall not at any time be more than a total
        of five
        (5) LIBOR Loans outstanding. Furthermore, all optional prepayments of principal
        of the Loans shall be in an amount equal to $500,000 or an integral multiple
        of
        $100,000 in excess thereof.

       

      Section
        2.9  Certain
        Notices

       

      Notices
        by Borrower to Administrative Agent of terminations or reductions of
        Commitments, of Advances, Conversions, Continuations and prepayments of Loans
        and of the duration of Interest Periods shall be irrevocable and shall be
        effective only if received by Administrative Agent not later than 12:00 noon
        (Dallas, Texas time) on the Business Day prior to the date of the relevant
        termination, reduction, Advance, Conversion, Continuation or prepayment or
        the
        first day of such Interest Period specified below:

       

      
        	
                 

                Notice

              	
                Number
                  of

                Business
                  Days

                Prior

              
	
                Terminations
                  or Reductions of Commitments

                 

              	
                5

                 

              
	
                Borrowings
                  of Loans as Base Rate Loans

                 

              	
                1

                 

              
	
                Borrowings
                  of Loans as LIBOR Loans

                 

              	
                2

                 

              
	
                Conversions
                  or Continuations of Loans

                 

              	
                2

                 

              
	
                Prepayments
                  of Loans which are Base Rate Loans

                 

              	
                1

                 

              
	
                Prepayments
                  of Loans which are LIBOR Loans

                 

              	
                2

                 

              

      

       

      Each
        such
        notice of termination or reduction shall specify the amount of the Commitments
        to be terminated or reduced. Each such notice of Advance, Conversion,
        Continuation or prepayment shall specify the Loans to be borrowed, Converted,
        Continued or prepaid and the amount (subject to Section
        2.8
        hereof)
        and Type of the Loans to be borrowed, Converted, Continued or prepaid (and,
        in
        the case of a Conversion, the Type of Loans to result from such Conversion)
        and
        the date of Advance, Conversion, Continuation or prepayment (which shall
        be a
        Business Day). Notices of Advances, Conversions, Continuations or prepayments
        shall be in the form of Exhibit
        B
        hereto,
        appropriately completed as applicable. Each such notice of the duration of
        an
        Interest Period shall specify the Loans to which such Interest Period is
        to
        relate. Administrative Agent shall promptly notify the Banks of the contents
        of
        each such notice. In the event that Borrower fails to select the Type of
        Loan,
        or the duration of any Interest Period for any LIBOR Loan, within the time
        period and otherwise as provided in this Section
        2.9,
        such
        Loan (if outstanding as LIBOR Loan) will be automatically Converted into
        a Base
        Rate Loan on the last day of the preceding Interest Period for such Loan
        or (if
        outstanding as a Base Rate Loan) will remain as, or (if not then outstanding)
        will be made as, a Base Rate Loan. Borrower may not borrow any LIBOR Loans,
        Convert any Loans into LIBOR Loans or Continue any Loans as LIBOR Loans if
        the
        interest rate for such LIBOR Loans would exceed the Highest Lawful
        Rate.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        2.10  Use
        of
        Proceeds.

       

      (a)  Borrower
        agrees with Administrative Agent and the Banks that (i) the proceeds of the
        Loans to be made on and after the Closing Date shall be used by Borrower,
        Parent
        and the Subsidiaries for working capital and general corporate purposes and
        to
        refinance existing Indebtedness and (ii) the Letters of Credit requested
        to be
        issued pursuant to this Agreement shall be used only to support transactions
        and
        obligations entered into in the ordinary course of any Company’s
        business.

       

      (b)  None
        of
        the proceeds of any Loan have been or will be used to acquire any security
        in
        any transaction that is subject to Section
        13
        or
14
        of the
        Securities Exchange Act of 1934, as amended, or to purchase or carry any
        margin
        stock (within the meaning of Regulations T, U or X of the Board of Governors
        of
        the Federal Reserve System).

       

      Section
        2.11  Fees

       

      Borrower
        agrees to pay the following fees in connection with each Bank’s commitment to
        make Loans and Issuing Bank’s commitment to issue Letters of
        Credit:

       

      (a)  A
        Letter
        of Credit fee is payable to the Administrative Agent for the account of the
        Banks in accordance with their respective Pro Rata Shares, for the term of
        each
        Letter of Credit at the percent per annum set forth in the table set forth
        in
        Section 2.4(b) above under the heading “L/C
        Fee Rate”
and
        opposite the Leverage Ratio which corresponds to the Leverage Ratio set forth
        in, and as calculated in accordance with, the applicable Compliance Certificate
        multiplied by the aggregate undrawn amount of such Letter of Credit. Letter
        of
        Credit fees shall be payable quarterly in arrears on each Quarterly Payment
        Date;

       

      (b)  An
        issuance fee is payable to Administrative Agent for the account of the Issuing
        Bank for the term of each Letter of Credit in an amount equal to $150, which
        fee
        is payable upon issuance of each Letter of Credit and on each anniversary
        of the
        issuance of such Letter of Credit, together with such other standard issuance,
        negotiation, processing and/or administration fees as may be charged by the
        Issuing Bank;

       

      (c)  Upon
        any
        amendment or modification of a Letter of Credit, a Letter of Credit amendment
        fee shall be paid to the Issuing Bank, for its own account, as determined
        pursuant to the Issuing Bank’s customary procedures;

       

      (d)  An
        annual
        agency fee in the amount of $20,000 shall be paid to Administrative Agent
        and
        Collateral Agent, equally, on each anniversary of the Closing Date.

       

      Section
        2.12  Computations

       

      Interest
        and fees payable by Borrower hereunder and under the other Loan Papers on
        all
        Loans shall be computed on the basis of a year of 360 days and the actual
        number
        of days elapsed (including the first day but excluding the last day) occurring
        in the period for which payable unless, in the case of interest, such
        calculation would result in a usurious rate, in which case interest shall
        be
        calculated on the basis of a year of 365 or 366 days, as the case may
        be.

       

      Section
        2.13  Termination
        or Reduction of Commitments.

       

      (a)  Notwithstanding
        anything to the contrary contained in this Agreement, the Commitments shall
        automatically terminate at 8:00 a.m. (Dallas, Texas time) on the Termination
        Date.

       

      (b)  Borrower
        shall have the right to terminate or reduce in part the unused portion of
        the
        Commitments at any time and from time to time, provided
        that (i)
        it shall give notice of each such termination or reduction as provided in
        Section
        2.9
        and (ii)
        each partial reduction shall be in an aggregate amount at least equal to
        $5,000,000 or an integral multiple of $100,000 in excess thereof. The
        Commitments may not be reinstated after they have been terminated or increased
        after they have been reduced.

       

      Section
        2.14  Letters
        of Credit.

       

      (a)  Subject
        to the terms and conditions of this Agreement, Borrower may utilize the
        Commitments by requesting that the Issuing Bank issue standby letters of
        credit
        (each such letter of credit and each Existing Letter of Credit is herein
        called
        a “Letter
        of Credit”);
        provided,
        that no
        Letter of Credit shall be issued if, after giving effect to the issuance
        thereof, (i) the Outstanding Revolving Credit would exceed the Borrowing
        Base
        then most recently determined, (ii) Borrowing Base Availability would be
        less
        than $5,000,000, or (iii) the Letter of Credit Liabilities would exceed
        $15,000,000. Upon the date of issue of each Letter of Credit, the Issuing
        Bank
        shall be deemed, without further action by any party hereto, to have sold
        to
        each Bank, and each Bank shall be deemed, without further action by any party
        hereto, to have purchased from the Issuing Bank, a participation to the extent
        of such Bank’s Pro Rata Share of the Commitments.

       

      (b)  Borrower
        shall give the Issuing Bank (with a copy to Administrative Agent) at least
        three
        (3) Business Days prior notice (effective upon receipt and irrevocable unless
        appropriately revoked sufficiently prior to issuance of the Letter of Credit)
        specifying the date of each Letter of Credit and the nature of the transactions
        or obligations to be supported thereby. Upon receipt of such notice and
        confirmation by the Issuing Bank with Administrative Agent that such Letter
        of
        Credit may be issued in compliance with this Agreement, the Issuing Bank
        shall
        promptly notify Administrative Agent of the contents thereof and of each
        such
        Bank’s Pro Rata Share of the amount of the proposed Letter of Credit, and
        Administrative Agent shall promptly thereupon notify the Bank’s of such
        information. In addition, the Issuing Bank shall promptly deliver to the
        Administrative Agent an electronic copy of such Letter of Credit. Each Letter
        of
        Credit shall have an expiration date that does not exceed one year from the
        date
        of issuance (unless specifically consented to by Administrative Agent, the
        Issuing Bank and the Required Banks) and that does not extend beyond the
        Termination Date, shall be payable in Dollars, shall support a transaction
        entered into in the ordinary course of business of Borrower, Parent or a
        Subsidiary, shall be satisfactory in form and substance to the Issuing Bank,
        and
        shall be issued pursuant to such agreements, documents and instruments as
        the
        Issuing Bank may reasonably require, none of which shall be inconsistent
        with
        this Agreement (and to the extent they irreconcilably conflict with this
        Agreement, the terms of this Agreement shall control). Each Letter of Credit
        shall (i) provide for the payment of drafts presented for, on or thereunder
        by
        the beneficiary in accordance with the terms thereof, when such drafts are
        accompanied by the documents (if any) described in the Letter of Credit and
        (ii)
        to the extent not inconsistent with the terms hereof, be subject to the Uniform
        Customs and Practice for Documentary Credits (1993 Revision), International
        Chamber of Commerce Publication No. 500 (together with any subsequent revision
        thereof approved by a Congress of the International Chamber of Commerce and
        adhered to by the Issuing Bank, the “UCP”),
        and
        shall, as to matters not governed by the UCP, be governed by, and construed
        and
        interpreted in accordance with, the Laws of the State of Texas.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c)  Upon
        receipt from any Letter of Credit beneficiary of any demand for payment or
        other
        drawing under such Letter of Credit, the Issuing Bank shall promptly notify
        Borrower and each Bank as to the amount to be paid as a result of such demand
        or
        drawing and the respective payment date. If at any time the Issuing Bank
        shall
        make a payment to a beneficiary of a Letter of Credit pursuant to a drawing
        under such Letter of Credit, each Bank will pay to the Issuing Bank, immediately
        upon the Issuing Bank’s demand at any time commencing after such payment until
        reimbursement therefor in full by Borrower, an amount equal to such Bank’s Pro
        Rata Share of such payment, together with interest on such amount for each
        day
        from the date of such payment to the date of payment by such Bank of such
        amount
        at a rate of interest per annum equal to the Federal Funds Rate.

       

      (d)  Borrower
        shall be irrevocably and unconditionally obligated to immediately reimburse
        the
        Issuing Bank for any amounts paid by the Issuing Bank upon any drawing under
        any
        Letter of Credit, without presentment, demand, protest or other formalities
        of
        any kind (each such reimbursement obligation, herein a “Reimbursement
        Obligation”).
        The
        Issuing Bank will pay to each Bank such Bank’s Pro Rata Share of all amounts
        received from or on behalf of Borrower for application in payment, in whole
        or
        in part, of the Reimbursement Obligation in respect of any Letter of Credit,
        but
        only to the extent such Bank has made payment to the Issuing Bank in respect
        of
        such Letter of Credit pursuant to Subsection
        (c)
        above.
        Outstanding Reimbursement Obligations shall bear interest at the Highest
        Lawful
        Rate and such interest shall be payable on demand.

       

      (e)  The
        Reimbursement Obligations of Borrower under this Agreement and the other
        Loan
        Papers shall be absolute, unconditional and irrevocable, and shall be performed
        strictly in accordance with the terms of this Agreement and the other Loan
        Papers under all circumstances whatsoever, including, without limitation,
        the
        following circumstances:

       

      (i)  Any
        lack
        of validity or enforceability of any Letter of Credit or any other Loan
        Papers;

       

      (ii)  Any
        amendment or waiver of or any consent to departure from any Loan
        Papers;

       

      (iii)  The
        existence of any claim, setoff, counterclaim, defense or other right which
        Borrower or any other Person may have at any time against any beneficiary
        of any
        Letter of Credit, Administrative Agent, the Issuing Bank, the Banks or any
        other
        Person, whether in connection with this Agreement or any other Loan Papers
        or
        any unrelated transaction;

       

      (iv)  Any
        statement, draft or other document presented under any Letter of Credit proving
        to be forged, fraudulent, invalid or insufficient in any respect or any
        statement therein being untrue or inaccurate in any respect
        whatsoever;

       

      (v)  Payment
        by the Issuing Bank under any Letter of Credit against presentation of a
        draft
        or other document that does not comply with the terms of such Letter of Credit,
        provided,
        that
        such payment shall not have constituted gross negligence or willful misconduct
        of the Issuing Bank; and

       

      (vi)  Any
        other
        circumstance whatsoever, whether or not similar to any of the foregoing,
        provided that such other circumstance or event shall not have been the result
        of
        the gross negligence or willful misconduct of the Issuing Bank.

       

      (f)  Borrower
        assumes all risks of the acts or omissions of any beneficiary of any Letter
        of
        Credit with respect to its use of such Letter of Credit. Neither Administrative
        Agent, the Issuing Bank, the Banks nor any of their respective officers or
        directors shall have any responsibility or liability to Borrower or any other
        Person for: (a) the failure of any draft to bear any reference or adequate
        reference to any Letter of Credit, or the failure of any documents to accompany
        any draft at negotiation, or the failure of any Person to surrender or to
        take
        up any Letter of Credit or to send documents apart from drafts as required
        by
        the terms of any Letter of Credit, or the failure of any Person to note the
        amount of any instrument on any Letter of Credit, (b) errors, omissions,
        interruptions or delays in transmission or delivery of any messages, (c)
        the
        validity, sufficiency or genuineness of any draft or other document, or any
        endorsement(s) thereon, even if any such draft, document or endorsement should
        in fact prove to be in any and all respects invalid, insufficient, fraudulent
        or
        forged or any statement therein is untrue or inaccurate in any respect, (d)
        the
        payment by the Issuing Bank to the beneficiary of any Letter of Credit against
        presentation of any draft or other document that does not comply with the
        terms
        of the Letter of Credit, or (e) any other circumstance whatsoever in making
        or
        failing to make any payment under a Letter of Credit; provided,
        however,
        that,
        notwithstanding the foregoing, Borrower shall have a claim against the Issuing
        Bank, and the Issuing Bank shall be liable to Borrower, to the extent of
        any
        direct, but not indirect or consequential, damages suffered by Borrower which
        Borrower proves in a final nonappealable judgment were caused by (i) the
        Issuing
        Bank’s willful misconduct or gross negligence in determining whether documents
        presented under any Letter of Credit complied with the terms thereof or (ii)
        the
        Issuing Bank’s willful failure to pay under any Letter of Credit after
        presentation to it of documents strictly complying with the terms and conditions
        of such Letter of Credit. The Issuing Bank may accept documents that appear
        on
        their face to be in order, without responsibility for further investigation,
        regardless of any notice or information to the contrary.

       

      (g)  The
        Issuing Bank may be replaced at any time by written agreement among the
        Borrower, the Administrative Agent, the replaced Issuing Bank and the successor
        Issuing Bank. The Administrative Agent shall notify the Banks of any such
        replacement of the Issuing Bank. At the time any such replacement shall become
        effective, the Borrower shall pay all unpaid fees accrued for the account
        of the
        replaced Issuing Bank pursuant to Section
        2.11(c).
        From
        and after the effective date of any such replacement, (i) the successor Issuing
        Bank shall have all the rights and obligations of the Issuing Bank under
        this
        Agreement with respect to Letters of Credit to be issued thereafter, and
        (ii)
        references herein to the term “Issuing Bank” shall be deemed to refer to such
        successor and all previous Issuing Banks, as the context shall require. After
        the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall
        remain a party hereto and shall continue to have all the rights and obligations
        of all Issuing Bank under this Agreement with respect to Letters of Credit
        issued by it prior to such replacement, but shall not be required to issue
        additional Letters of Credit.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        2.15  Method
        of Payment

       

      All
        payments of principal, interest, fees and other amounts to be made by Borrower,
        Parent or any Subsidiary under this Agreement or any other Loan Paper shall
        be
        made via wire transfer of funds to Administrative Agent for the account of
        each
        Bank’s Applicable Lending Office in Dollars and in immediately available funds,
        without setoff, deduction or counterclaim, not later than 12:00 noon (Dallas,
        Texas time) on the date on which such payment shall become due (each such
        payment made after such time on such due date to be deemed to have been made
        on
        the next succeeding Business Day). Borrower or such other Person shall, at
        the
        time of making each such payment, specify to Administrative Agent the sums
        payable by such Person under this Agreement or the other Loan Document to
        which
        each such payment is to be applied (and in the event that such Person fails
        to
        so specify, or if an Default has occurred and is continuing or if a Potential
        Default would exist after the making of such payment, Administrative Agent
        may
        apply such payment to such Person’s Loans, Reimbursement Obligations and other
        Obligations in such order and manner as Administrative Agent may elect, subject
        to Section
        2.16).
        Upon
        the occurrence and during the continuation of a Default, all proceeds of
        any
        Collateral and all other funds of Borrower, Parent or any Subsidiary in the
        possession of Administrative Agent or any Bank may be applied by Administrative
        Agent to the Obligations in such order and manner as Administrative Agent
        may
        elect, subject to the provisions of Section
        2.16.
        Notwithstanding the foregoing, if a Default has occurred and is continuing,
        Administrative Agent and the Banks agree among themselves that all such
        payments, proceeds and funds, shall be applied (or, in the case of Letter
        of
        Credit Liabilities consisting of the undrawn face amount of Letters of Credit,
        held by Administrative Agent as cash collateral for application against)
        pro
        rata to the Outstanding Revolving Credit. Each payment received by
        Administrative Agent under this Agreement or any other Loan Paper for the
        account of the Bank shall be paid promptly to such Bank, in immediately
        available funds, for the account of such Bank’s Applicable Lending Office.
        Whenever any payment under this Agreement or any other Loan Paper shall be
        stated to be due on a day that is not a Business Day, such payment may be
        made
        on the next succeeding Business Day, and such extension of time shall in
        such
        case be included in the computation of the payment of interest and commitment
        fee, as the case may be.

       

      Section
        2.16  Pro
        Rata Treatment

       

      Except
        to
        the extent otherwise provided in this Agreement: (a) each Loan shall be made
        by
        the Banks under Section
        2.1,
        each
        payment of commitment fees under Section
        2.11
        shall be
        made for the account of the Banks, and each termination or reduction of the
        Commitments under Section
        2.13
        shall be
        applied to the appropriate Commitments of the applicable Banks, pro rata
        according to the respective unused Commitments; (b) the making, Conversion
        and
        Continuation of Loans of a particular Type (other than Conversions provided
        for
        by Section
        2.25)
        shall
        be made pro rata among the Banks holding Loans of such Type according to
        the
        amounts of their respective appropriate Commitments; (c) each payment and
        prepayment by Borrower of principal of or interest on Loans of a particular
        Type
        shall be made to Administrative Agent for the account of the Banks holding
        Loans
        of such Type pro rata in accordance with the respective unpaid principal
        amounts
        of such Loans held by such Banks; (d) Interest Periods for Loans of a particular
        Type shall be allocated among the Banks holding Loans of such Type pro rata
        according to the respective principal amounts held by such Banks; and (e)
        the
        Banks (other than the Issuing Bank) shall purchase participations in the
        Letters
        of Credit pro rata in accordance with their respective Pro Rata
        Share.

       

      Section
        2.17  Sharing
        of Payments, Etc.

       

      If
        a Bank
        shall obtain payment of any principal of or interest on any of the Obligations
        due to such Bank hereunder through the exercise of any right of setoff, banker’s
        lien, counterclaim or similar right, or otherwise, it shall promptly purchase
        from the other Banks participations in the Obligations held by the other
        Banks
        in such amounts, and make such adjustments from time to time, as shall be
        equitable to the end that all Banks shall share pro rata in accordance with
        the
        unpaid principal and interest on the Obligations then due to each of them.
        To
        such end, all Banks shall make appropriate adjustments among themselves (by
        the
        resale of participations sold or otherwise) if all or any portion of such
        excess
        payment is thereafter rescinded or must otherwise be restored. Each of Borrower,
        Parent and the Subsidiaries agrees, to the fullest extent it may effectively
        do
        so under applicable Law, that any Bank so purchasing a participation in the
        Obligations by the other Banks may exercise all rights of setoff, banker’s lien,
        counterclaim or similar rights with respect to such participation as fully
        as if
        such Bank were a direct holder of Obligations in the amount of such
        participation. Nothing contained herein shall require any Bank to exercise
        any
        such right or shall affect the right of any Bank to exercise, and retain
        the
        benefits of exercising, any such right with respect to any other indebtedness,
        liability or obligation of Borrower, Parent or any of the
        Subsidiaries.

       

      Section
        2.18  Non-Receipt
        of Funds by Administrative Agent

       

      Unless
        Administrative Agent shall have been notified by a Bank or Borrower
        (“Payor”)
        prior
        to the date on which such Bank is to make payment to Administrative Agent
        of the
        proceeds of a Loan to be made by it hereunder or Borrower is to make a payment
        to Administrative Agent for the account of one or more of Banks, as the case
        may
        be (such payment being herein called the “Required
        Payment”),
        which
        notice shall be effective upon receipt, that Payor does not intend to make
        the
        Required Payment to Administrative Agent, Administrative Agent may assume
        that
        the Required Payment has been made and may, in reliance upon such assumption
        (but shall not be required to), make the amount thereof available to the
        intended recipient on such date and, if Payor has not in fact made the Required
        Payment to Administrative Agent, the recipient of such payment shall, on
        demand,
        pay to Administrative Agent the amount made available to it together with
        interest thereon in respect of the period commencing on the date such amount
        was
        so made available by Administrative Agent until the date Administrative Agent
        recovers such amount at a rate per annum equal to the Federal Funds Rate
        for
        such period.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        2.19  Withholding
        Taxes.

       

      (a)  All
        payments by Borrower of principal of and interest on the Loans and the Letter
        of
        Credit Liabilities and of all fees and other amounts payable under the Loan
        Papers shall be made free and clear of, and without deduction by reason of,
        any
        present or future taxes, levies, duties, imposts, assessments or other charges
        levied or imposed by any Tribunal (other than any taxes imposed on the taxable
        income of Administrative Agent or any Bank or any lending office of
        Administrative Agent or such Bank by any jurisdiction in which Administrative
        Agent or such Bank or any such lending office is located). If any such taxes,
        levies, duties, imposts, assessments or other charges are so levied or imposed,
        upon Borrower receiving written notice of the detailed calculation of same
        Borrower will (i) make additional payments in such amounts so that every
        net
        payment of principal of and interest on the Loans and the Letter of Credit
        Liabilities and of all other amounts payable by it under the Loan Papers,
        after
        withholding or deduction for or on account of any such present or future
        taxes,
        levies, duties, imposts, assessments or other charges (including any tax
        imposed
        on or measured by taxable income of a Bank attributable to payments made
        to or
        on behalf of a Bank pursuant to this Section
        2.19
        and any
        penalties or interest attributable to such payments), will not be less than
        the
        amount provided for herein or therein absent such withholding or deduction
        (provided
        that
        Borrower shall not have any obligation to pay such additional amounts to
        any
        Bank to the extent that such taxes, levies, duties, imposts, assessments
        or
        other charges are levied or imposed by reason of the failure of such Bank
        to
        comply with the provisions of Section
        2.20),
        (ii)
        make such withholding or deduction, and (iii) remit the full amount deducted
        or
        withheld to the relevant Tribunal in accordance with applicable Law. Without
        limiting the generality of the foregoing, Borrower will, upon written request
        of
        any Bank, reimburse each such Bank for the amount of (A) such taxes, levies,
        duties, imports, assessments or other charges so levied or imposed by any
        Tribunal and paid by such Bank as a result of payments made by Borrower under
        or
        with respect to the Loans, other than such taxes, levies, duties, imports,
        assessments and other charges previously withheld or deducted by Borrower
        which
        have previously resulted in the payment of the required additional amount
        to
        Bank, and (B) such taxes, levies, duties, assessments and other charges so
        levied or imposed with respect to any Bank reimbursement under the foregoing
        clause (A),
        so that
        the net amount received by such Bank (net of payments made under or with
        respect
        to the Loans and the Letter of Credit Liabilities) after such reimbursement
        will
        not be less than the net amount such Bank would have received if such taxes,
        levies, duties, assessments and other charges on such reimbursement had not
        been
        levied or imposed. Borrower shall furnish promptly to Administrative Agent
        for
        distribution to each affected Bank, upon request of each such Bank, official
        receipts evidencing any such payment, withholding or reduction.

       

      (b)  Upon
        Borrower receiving written notice of the charging of same (including a detailed
        calculation of same), Borrower will indemnify Administrative Agent and each
        Bank
        (without duplication) against, and reimburse Administrative Agent and each
        Bank
        for, all present and future taxes, levies, duties, imposts, assessments or
        other
        charges (including interest and penalties) levied or collected (whether or
        not
        legally or correctly imposed, assessed, levied or collected), excluding,
        however, any taxes imposed on the overall taxable income of Administrative
        Agent
        or such Bank or any lending office of Administrative Agent or such Bank by
        any
        jurisdiction in which Administrative Agent or such Bank or any such lending
        office is located, on or in respect of this Agreement, any of the Loan Papers
        or
        the Obligations or any portion thereof (“reimbursable
        taxes”).
        Any
        such indemnification shall be on an after-tax basis, taking into account
        any
        such reimbursable taxes imposed on the amounts paid as indemnity.

       

      (c)  If
        and to
        the extent actually known by such Bank, each Bank will use reasonable efforts
        to
        notify Borrower and Administrative Agent, in a reasonably prompt fashion
        after
        such assignment is made, of any assignment of the Commitment or the Loans
        by
        such Bank to an Eligible Assignee which is subject to a withholding tax that
        will impose any payment obligation upon Borrower pursuant to this Section
        2.19.
        Each
        Bank will use reasonable efforts to notify Borrower and Administrative Agent
        of
        any amounts to be paid by Borrower pursuant to this Section
        2.19
        in a
        reasonably prompt fashion after such Bank becomes aware of the circumstances
        which require the payment of such amounts by Borrower.

       

      Section
        2.20  Withholding
        Tax Exemption

       

      Each
        Bank
        that is not incorporated or otherwise formed under the Laws of the U.S. or
        a
        state thereof agrees that it will, prior to or on or about the Closing Date
        or
        the date upon which it becomes a party to this Agreement, deliver to Borrower
        and Administrative Agent two duly completed copies of U.S. Internal Revenue
        Service Form 1001, 4224 or W-8, as appropriate, certifying in any case that
        such
        Bank is entitled to receive payments from Borrower under any Loan Paper without
        deduction or withholding of any U.S. federal income taxes. Each Bank which
        so
        delivers a Form 1001, 4224 or W-8 further undertakes to deliver to Borrower
        and
        Administrative Agent two additional copies of such form (or a successor form)
        on
        or before the date such form expires or becomes obsolete or after the occurrence
        of any event requiring a change in the most recent form so delivered by it,
        and
        such amendments thereto or extensions or renewals thereof as may be reasonably
        requested by Borrower or Administrative Agent, in each case certifying that
        such
        Bank is entitled to receive payments from Borrower under any Loan Paper without
        deduction or withholding of any U.S. federal income taxes, unless an event
        (including without limitation any change in treaty, Law or regulation) has
        occurred prior to the. date on which any such delivery would otherwise be
        required which renders all such forms inapplicable or which would prevent
        such
        Bank from duly completing and delivering any such form with respect to it
        and
        such Bank advises Borrower and Administrative Agent that it is not capable
        of
        receiving such payments without any deduction or withholding of U.S. federal
        income tax.

       

      Section
        2.21  Reinstatement
        of Obligations

       

      Notwithstanding
        anything to the contrary contained in this Agreement or any other Loan Paper,
        if
        the payment of any amount of principal of or interest with respect to the
        Loans,
        the Reimbursement Obligations or any other amount of the Obligations, or
        any
        portion thereof, is rescinded, voided or must otherwise be refunded by
        Administrative Agent, any Bank or Issuing Bank upon the insolvency, bankruptcy
        or reorganization of Borrower or any of the Subsidiaries or otherwise for
        any
        reason whatsoever, then each of (a) the Obligations, (b) the Loan Papers
        (including, without limitation, this Agreement, the Notes, the Guaranty
        Agreements and the Security Agreement), (c) the indebtedness, liabilities
        and
        obligations of Borrower, Parent and the Subsidiaries under the Loan Papers,
        and
        (d) all Liens for the benefit of Administrative Agent and the Banks created
        under or evidenced by the Loan Papers, will be automatically reinstated and
        become automatically effective and in full force and effect, all to the extent
        that and as though such payment so rescinded, voided or otherwise refunded
        had
        never been made.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        2.22  Additional
        Costs.

       

      (a)  Borrower
        shall pay directly to each Bank from time to time, within ten days after
        the
        written request of such Bank, the costs incurred by such Bank which such
        Bank
        reasonably determines are attributable to its making or maintaining of any
        LIBOR
        Loans or its obligation to make any of such Loans, or any reduction in any
        amount receivable by such Bank hereunder in respect of any such Loans or
        obligations (such increases in costs and reductions in amounts receivable
        being
        herein called “Additional
        Costs”),
        resulting from any Regulatory Change occurring after the Closing Date
        which:

       

      (i)  changes
        the basis of taxation of any amounts payable to such Bank under this Agreement
        or its Notes in respect of any of such Loans (other than income taxes and
        franchise taxes attributable to income of such Bank or its Applicable Lending
        Office for any of such Loans by the jurisdiction in which such Bank has its
        principal office or such Applicable Lending Office);

       

      (ii)  imposes
        or modifies any reserve, special deposit, minimum capital, capital ratio
        or
        similar requirement relating to any extensions of credit or other assets
        of, or
        any deposits with or other liabilities or commitments of, such Bank (including
        any of such Loans or any deposits referred to in the definition of “LIBOR
        Rate”
in
        Section
        1.1
        hereof,
        but excluding the LIBOR Reserve Percentage to the extent it is included in
        the
        calculation of the LIBOR Rate); or

       

      (iii)  imposes
        any other condition affecting this Agreement or the Notes or any of such
        extensions of credit or liabilities or commitments.

       

      Each
        applicable Bank will notify Borrower (with a copy to Administrative Agent)
        of
        any event occurring after the Closing Date which will entitle such Bank to
        compensation pursuant to this Section
        2.22(a)
        as
        promptly as practicable after it obtains knowledge thereof and determines
        to
        request such compensation, and (if so requested by Borrower) will, if and
        to the
        extent that it is reasonably feasible for such Bank to do so given
        administrative and other considerations, designate a different Applicable
        Lending Office for the LIBOR Loans of such Bank if such designation will
        avoid
        the need for, or reduce the amount of, such compensation and will not, in
        the
        reasonable opinion of such Bank, violate any Law, rule or regulation or be
        in
        any way disadvantageous to such Bank. Each applicable Bank will furnish Borrower
        with a certificate setting forth the basis and the amount of each request
        of
        such Bank for compensation under this Section
        2.22(a).
        If any
        Bank requests compensation from Borrower under this Section
        2.22(a),
        Borrower may, by notice to such Bank (with a copy to Administrative Agent),
        suspend the obligation of such Bank to make or Continue making, or Convert
        Base
        Rate Loans into, LIBOR Loans until the Regulatory Change giving rise to such
        request ceases to be in effect (in which case the provisions of Section
        2.25
        hereof
        shall be applicable).

       

      (b)  Without
        limiting the effect of the foregoing provisions of this Section
        2.22,
        in the
        event that, by reason of any Regulatory Change, any Bank either (i) incurs
        Additional Costs based on or measured by the excess above a specified level
        of
        the amount of a category of deposits or other liabilities of such Bank which
        includes deposits by reference to which the interest rate on LIBOR Loans
        is
        determined as provided in this Agreement or a category of extensions of credit
        or other assets of such Bank which includes LIBOR Loans or (ii) becomes subject
        to restrictions on the amount of such a category of liabilities or assets
        which
        it may hold, then, if such Bank so elects by notice to Borrower (with a copy
        to
        Administrative Agent), the obligation of such Bank to make or Continue making,
        or Convert Base Rate Loans into, LIBOR Loans hereunder shall be suspended
        until
        such Regulatory Change ceases to be in effect (in which case the provisions
        of
Section
        2.25
        hereof
        shall be applicable).

       

      (c)  Determinations
        and allocations by any Bank for purposes of this Section
        2.22
        of the
        effect of any Regulatory Change on its costs of maintaining its obligation
        to
        make Loans or issue Letters of Credit or of making or maintaining Loans or
        issuing Letters of Credit or on amounts receivable by it in respect of Loans
        or
        Letters of Credit, and of the additional amounts required to compensate such
        Bank in respect of any Additional Costs, shall be conclusive in the absence
        of
        manifest error, provided that such determinations and allocations are made
        on a
        reasonable basis.

       

      Section
        2.23  Limitation
        on Types of Loans

       

      Anything
        herein to the contrary notwithstanding, if with respect to any LIBOR Loans
        for
        any Interest Period therefor:

       

      (a)  Administrative
        Agent determines (which determination shall be made reasonably and in good
        faith
        and shall be conclusive absent manifest error) that quotations of interest
        rates
        for the relevant deposits referred to in the definition of “LIBOR Rate” in
Section
        1.1
        hereof
        are not being provided in the relative amounts or for the relative maturities
        for purposes of determining the rate of interest for such Loans as provided
        in
        this Agreement; or

       

      (b)  any
        Bank
        determines (which determination shall be in good faith and shall be conclusive
        absent manifest error) and notifies Administrative Agent that the relevant
        rates
        of interest referred to in the definition of “LIBOR Rate” in Section
        1.1
        hereof
        on the basis of which the rate of interest for such Loans for such Interest
        Period is to be determined do not accurately reflect the cost to such Bank
        of
        making or maintaining such Loans for such Interest Period; then
        Administrative Agent shall give Borrower prompt notice thereof and, so long
        as
        such condition remains in effect, such Bank shall be under no obligation
        to make
        LIBOR Loans or to Convert Base Rate Loans into LIBOR Loans and Borrower shall,
        on the last day(s) of the then current Interest Period(s) for the outstanding
        LIBOR Loans, either prepay such Loans or Convert such Loans into Base Rate
        Loans
        in accordance with the terms of this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        2.24  Illegality

       

      Notwithstanding
        any other provision of this Agreement, in the event that it becomes unlawful
        for
        any Bank or its Applicable Lending Office to (a) honor its obligation to
        make
        LIBOR Loans or (b) maintain LIBOR Loans, then such Bank shall promptly notify
        Borrower thereof (with a copy to Administrative Agent) and such Bank’s
        obligation to make or maintain LIBOR Loans and to Convert Base Rate Loans
        into
        LIBOR Loans hereunder shall be suspended until such time as such Bank may
        again
        make and maintain LIBOR Loans (in which case the provisions of Section
        2.25
        hereof
        shall be applicable).

       

      Section
        2.25  Treatment
        of Affected Loans

       

      If
        the
        obligation of any Bank to make or Continue, or to Convert Base Rate Loans
        into,
        LIBOR Loans is suspended pursuant to Section 2.22
        or
2.24
        hereof,
        such Bank’s LIBOR Loans shall be automatically Converted into Base Rate Loans on
        the last day(s) of the then current Interest Period(s) for the LIBOR Loans
        (or,
        in the case of a Conversion required by Section
        2.22(b)
        or
2.24
        hereof,
        on such earlier date as such Bank may specify to Borrower (with a copy to
        Administrative Agent) and, unless and until such Bank gives notice as provided
        below that the circumstances specified in Section
        2.22
        or
2.24
        hereof
        which gave rise to such Conversion no longer exist:

       

      (a)  To
        the
        extent that such Bank’s LIBOR Loans have been so Converted, all payments and
        prepayments of principal which would otherwise be applied to such Bank’s LIBOR
        Loans shall be applied instead to its Base Rate Loans; and

       

      (b)  All
        Loans
        which would otherwise be made or Continued by such Bank as LIBOR Loans shall
        be
        made as or Converted into Base Rate Loans and all Loans of such Bank which
        would
        otherwise be Converted into LIBOR Loans shall be Converted instead into (or
        shall remain as) Base Rate Loans.

       

      If
        such
        Bank gives notice to Borrower (with a copy to Administrative Agent) that
        the
        circumstances specified in Section
        2.22
        or
2.24
        hereof
        which gave rise to the Conversion of such Bank’s LIBOR Loans pursuant to this
Section
        2.25
        no
        longer exist (which such Bank agrees to do promptly upon such circumstances
        ceasing to exist) at a time when LIBOR Loans are outstanding, such Bank’s Base
        Rate Loans shall be automatically Converted, on the first day(s) of the next
        succeeding Interest Period(s) for such outstanding LIBOR Loans, to the extent
        necessary so that, after giving effect thereto, all Loans held by Banks holding
        LIBOR Loans and by such Bank are held pro rata (as to principal amounts,
        Types
        and Interest Periods) in accordance with their respective
        Commitment.

       

      Section
        2.26  Compensation

       

      Borrower
        shall pay to Administrative Agent for the account of each Bank, promptly
        upon
        the request of such Bank through Administrative Agent, such amount or amounts
        as
        shall be sufficient (in the reasonable opinion of such Bank) to compensate
        it
        for any loss, cost or expense incurred by it as a result of:

       

      (a)  any
        payment, prepayment or Conversion of a LIBOR Loan for any reason (including,
        without limitation, the acceleration of the outstanding Loans pursuant to
        this
        Agreement) on a date other than the last day of an Interest Period for such
        Loan; or

       

      (b)  any
        failure by Borrower for any reason (including, without limitation, the failure
        of any conditions precedent specified in Article
        3
        to be
        satisfied) to borrow, Convert or prepay a LIBOR Loan on the date for such
        Advance, Conversion or prepayment specified in the relevant notice of Advance,
        prepayment or Conversion under this Agreement.

       

      The
        loss
        (as opposed to cost or expense) to be compensated under clause
        (a)
        of this
Section
        2.26
        shall
        not exceed an amount equal to the excess, if any, of (i) the amount of interest
        which otherwise would have accrued on the principal amount so paid, prepaid
        or
        Converted to the last day of the Interest Period at the applicable rate for
        such
        LIBOR Loan over (ii) the cost to the applicable Bank of the interest component
        of such LIBOR Loan which otherwise would have accrued.

       

      Section
        2.27  Capital
        Adequacy

       

      If,
        after
        the Closing Date, any Bank shall have determined that the adoption or
        implementation of any applicable Law, rule or regulation regarding capital
        adequacy, or any change therein, or any change in the interpretation or
        administration thereof by any central bank or other Tribunal charged with
        the
        interpretation or administration thereof, or compliance by such Bank (or
        its
        parent) with any guideline, request or directive regarding capital adequacy
        (whether or not having the force of law) of any central bank or other Tribunal,
        has or would have the effect of reducing the rate of return on such Bank’s (or
        its parent’s) capital as a consequence of its obligations hereunder or the
        transactions contemplated hereby to a level below that which such Bank (or
        its
        parent) could have achieved but for such adoption, implementation, change
        or
        compliance (taking into consideration such Bank’s policies with respect to
        capital adequacy) by an amount deemed by such Bank to be material, then from
        time to time, within ten Business Days after demand by such Bank (with a
        copy to
        Administrative Agent), Borrower shall pay to such Bank such additional amount
        or
        amounts as will compensate such Bank (or its parent) for such reduction.
        A
        certificate of such Bank claiming compensation under this Section
        2.27,
        and
        setting forth the additional amount or amounts to be paid to it hereunder
        shall
        be conclusive absent manifest error, provided that the determination thereof
        is
        made on a reasonable basis. In determining such amount or amounts, such Bank
        may
        use any reasonable averaging and attribution methods.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        III

      CONDITIONS
        PRECEDENT

       

      Section
        3.1  Conditions
        Precedent to Initial Loans and Letters of Credit

       

      The
        obligation of the Banks to make the initial Loans and to issue the initial
        Letter of Credit shall be subject to the fulfillment of the following conditions
        precedent on or before the Closing Date in a manner satisfactory to the
        Banks:

       

      (a)  Each
        Bank
        shall have received the following:

       

      (i)  A
        copy of
        resolutions approving this Agreement and authorizing the transactions
        contemplated in this Agreement and the other Loan Papers, duly adopted by
        the
        Board of Directors of each of the Companies, accompanied by a certificate
        of the
        Secretary or Assistant Secretary of the respective Company, dated the date
        hereof, that such copy is a true and correct copy of resolutions duly adopted
        at
        a meeting (which may be held if permitted by applicable Law and, if required
        by
        such Law, by the bylaws of the respective Company, by conference telephone
        or
        similar communications equipment by means of which all persons participating
        in
        a meeting can hear each other) of, or by the unanimous written consent of
        (if
        permitted by applicable Law and, if required by such Law, by the bylaws of
        the
        respective Company),the Board of Directors of the respective Company, and
        that
        such resolutions have not been amended, modified, repealed, or revoked in
        any
        respect, and are in full force and effect as of the date hereof:

       

      (ii)  A
        certificate of incumbency of all officers of Borrower and each Company who
        will
        be authorized to execute or attest this Agreement or any document delivered
        pursuant hereto on behalf of Borrower or such Company, dated the date hereof;
        executed by the Secretary or Assistant Secretary of Borrower or such
        Company.

       

      (iii)  The
        articles of incorporation of Borrower and each Company certified by the
        Secretary of State of the state of its incorporation and dated a current
        date.

       

      (iv)  The
        bylaws of Borrower and each Company certified by its Secretary or Assistant
        Secretary.

       

      (v)  Certificates
        of the appropriate government officials of the state of incorporation of
        Borrower and each Company as to its existence and, to the extent applicable,
        good standing and certificates of the appropriate government officials of
        each
        state in which Borrower and each Company is required to qualify to do business
        and where failure to so qualify could reasonably be expected to have a Material
        Adverse Effect, as to such Person’s qualification to do business and good
        standing in such state, all dated a current date.

       

      (vi)  Its
        Revolving Credit Note duly executed by Borrower.

       

      (vii)  A
        Guaranty Agreement (or ratification thereof, if applicable), in form and
        substance satisfactory to the Required Banks, appropriately executed and
        delivered by each of the Companies other than Borrower.

       

      (viii)  The
        fees
        due on the Closing Date in accordance with this Agreement.

       

      (ix)  Such
        other documents as Administrative Agent or any Bank may reasonably
        request.

       

      (b)  The
        representations and warranties contained in Article
        IV
        of this
        Agreement shall be true and correct in all material respects on and as of
        such
        date with the same effect as if made on and as of such date.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (c)  No
        Default or Potential Default, shall be in existence on such date or after
        giving
        effect to such initial Loans or Letter of Credit.

       

      (d)  All
        corporate and legal proceedings and all documents required to be completed
        and
        executed by the provisions of, and all instruments to be executed in connection
        with the transactions contemplated by this Agreement and any related agreements
        shall be satisfactory in form and substance to Administrative Agent and the
        Required Banks, and Administrative Agent and the Banks shall have received
        all
        information and copies of all documents, including records of corporate
        proceedings, required by this Agreement and any related agreements to be
        executed or which Administrative Agent or any Bank may reasonably have requested
        in connection therewith, such documents, where appropriate, to be certified
        by
        proper corporate or governmental authorities.

       

      (e)  No
        legal
        proceeding shall be pending or threatened against Borrower or any other Company
        by or before any, Tribunal which could reasonably be expected to have a Material
        Adverse Effect.

       

      (f)  The
        consummation of such Loans or issuance of such Letter of Credit shall not
        violate any applicable provision of any Law.

       

      Section
        3.2  Conditions
        of Subsequent Advances

       

      The
        obligation of the Banks to make any Advance or Continuation or Conversion
        requested to be made by it prior to the Termination Date, or issue any Letter
        of
        Credit, shall be subject to the fulfillment of each of each following conditions
        precedent on or before the date of such Advance, Continuation, Conversion
        or
        issuance of Letter of Credit in a manner satisfactory to Administrative Agent,
        the Issuing Bank and the Banks, as applicable:

       

      (a)  Administrative
        Agent and such Bank shall have received the notice regarding such Advance
        in
        compliance with this Agreement or, in the case of any Conversion or
        Continuation, Administrative Agent and such Bank shall either have received
        the
        notice regarding such activity in compliance with this Agreement or
        Administrative Agent and such Bank shall have received notice regarding such
        Letter of Credit pursuant to this Agreement.

       

      (b)  The
        representations and warranties contained in Article
        IV
        of this
        Agreement shall be true and correct in all material respects when made and
        as of
        the date of such Advance, Continuation, Conversion or Letter of Credit, as
        the
        case may be, with the same effect as if made on and as of such
        date.

       

      (c)  No
        Default or Potential Default, shall be in existence on the date of any Advance,
        Conversion, Continuation or Letter of Credit, or after giving effect to such
        Advance, Conversion, Continuation or Letter of Credit.

       

      (d)  With
        regard to a Letter of Credit (i) the Issuing Bank shall have received an
        application and agreement for issuance of letter of credit, promissory note
        and/or reimbursement agreement relating to such Letter of Credit duly executed
        by Borrower with respect thereto, on the Issuing Bank’s standard form; and (ii)
        the form and substance of the Letter of Credit shall be reasonably satisfactory
        to the Issuing Bank.

       

      (e)  All
        corporate and legal proceedings and all documents required to be completed
        and
        executed by the provisions of, and all instruments to be executed in connection
        with the transactions contemplated by, this Agreement and any other Loan
        Paper
        shall be satisfactory in form and substance to Administrative Agent and the
        Banks and shall remain valid and effective and shall not have been revoked
        or
        attempted to be revoked and Administrative Agent and the Banks shall have
        received all information and copies of all documents., including records
        of
        corporate proceedings, required by this Agreement and any related agreements
        to
        be executed or which Administrative Agent or any Bank may reasonably have
        requested in connection therewith, such documents, where appropriate, to
        be
        certified by proper corporate or governmental authorities.

       

      (f)  No
        legal
        proceeding shall be pending or threatened against Borrower or any other Company
        by or before any Tribunal which could reasonably be expected to have a Material
        Adverse Effect.

       

      (g)  The
        consummation of such Advance, Conversion or Continuation or issuance of such
        Letter of Credit shall not violate any applicable provisions of any
        Law.

       

      (h)  Any
        Bank’s obligations to make any Advance or issue any Letter of Credit hereunder
        shall not have been terminated pursuant to any provision of this
        Agreement.

       

      (i)  There
        shall not have occurred any event or series of events that has had or is
        likely
        to have a Material Adverse Effect on the financial performance or business
        activities of Parent or any Subsidiary.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        3.3  Effect
        of Request for any Subsequent Advance or Conversion or Continuation, or Request
        for Letter of Credit

       

      Each
        notice requesting an Advance, each notice requesting a Conversion or
        Continuation, and each request for issuance of a Letter of Credit, shall
        be
        deemed to be a representation and warranty that the matters set forth in
        Subsections 3.2(b)
        and
(c)
        and in
Article
        IV
        are true
        and correct as of the date of the requested Advance, Conversion, Continuation
        or
        Letter of Credit.

       

      ARTICLE
        IV  

       

      CERTAIN
        REPRESENTATIONS AND WARRANTIES

       

      Borrower
        and each other Company jointly and severally represent and warrant to
        Administrative Agent and the Banks that:

       

      Section
        4.1  Corporate
        Existence and Authority; Names

       

      Each
        Company (i) is a corporation duly organized, validly existing, and in good
        standing under the Laws of its State of incorporation (ii) is duly qualified
        to
        transact business as a foreign corporation in each jurisdiction where the
        nature
        and extent of its business and properties require the same, and (iii) possesses
        all requisite authority, power, licenses, permits, and franchises to conduct
        its
        business and execute, deliver, and comply with the terms of the Loan Papers,
        which have been duly authorized and approved by all necessary corporate action
        and for which no approval or consent of any Tribunal is required.

       

      Section
        4.2  Financial
        Statements

       

      The
        consolidated Financial Statements of Parent as of December 31, 2005 and as
        of
        June 30, 2006 (collectively the “Current
        Financials”)
        were
        prepared in accordance with GAAP and fairly present the consolidated financial
        conditions and the results of operations of the Companies as of, and for
        the
        portion of the fiscal year ending on, such dates. There were no material
        liabilities, direct or indirect, fixed or contingent, of the Companies as
        of the
        date of the Current Financials which are not reflected therein or in the
        notes
        thereto. Except for transactions directly related to, or specifically
        contemplated by, this Agreement and transactions heretofore disclosed in
        writing
        to the Banks, there have been no material adverse changes in the respective
        financial conditions of the Companies from those shown in the Current Financials
        between such date and the date hereof, nor has any Company incurred any material
        liability, direct or indirect, fixed, or contingent, except for the Existing
        Indebtedness.

       

      Section
        4.3  Compliance
        with Laws and Documents; Existing Defaults; Litigation

       

      None
        of
        the Companies is, nor will the execution, delivery and the performance of
        and
        compliance with the terms of the Loan Papers cause any of the Companies to
        be:
        (i) in violation of any Laws or the Certificates or Articles of Incorporation
        or
        Bylaws of any of the Companies in any respect which could have any effect
        whatsoever upon the validity, performance or enforceability of any of the
        terms
        of the Loan Papers or which could reasonably be expected to have a Material
        Adverse Effect; or (ii) in default (nor has any event occurred which, with
        notice or lapse of time or both, could constitute a default) under any material
        agreement or instrument to which any Company is a party or under which any
        Company or any of its property is bound. Except as set forth on Schedule
        4.3
        attached
        hereto, which Schedule shall be updated as provided in Section
        5.1(t)
        (“Litigation
        Schedule”),
        none
        of the Companies is involved in, nor is any Company aware of the threat of,
        any
        Litigation where the maximum aggregate potential loss to the Borrower, the
        Parent and the Companies is greater than $250,000; none of the Litigation
        described on the Litigation Schedule could reasonably be expected to have
        a
        Material Adverse Effect; and, except as set forth on the Litigation Schedule,
        there are no outstanding or unpaid judgments against any of the
        Companies.

       

      Section
        4.4  Enforceability

       

      The
        execution, delivery and performance of the Loan Papers to which each of the
        Companies is a party have been duly authorized by resolutions of the board
        of
        directors of such Company. The Loan Papers have been duly and validly executed
        and delivered by each of the Companies that is a party thereto and constitute
        the legal, valid and binding obligations of the Companies, enforceable against
        the Companies in accordance with their respective terms, except as limited
        by
        bankruptcy, insolvency or other Laws of general application relating to the
        enforcement of creditors’ rights and general principles of equity.

       

      Section
        4.5  Payment
        of Taxes

       

      Borrower
        and the other Companies have filed all federal, state and other tax returns
        and
        reports required to be filed, and have paid all Taxes required by them to
        the
        extent that such Taxes have become due (except to the extent that the same
        are
        being contested in good faith by appropriate proceedings diligently prosecuted
        and as to which adequate reserves have been set aside in conformity with
        GAAP).

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        4.6  Plan
        Obligations

       

      Schedule
        4.6
        lists
        each Plan which is maintained, established or contributed to by any Company
        or
        any other Group Member as of the Closing Date. Without limiting the generality
        of the foregoing, no Company or other Group Member has maintained, established
        or contributed to (i) an “employee pension benefit plan” as defined in
Section
        3(2)
        of the
        Employee Retirement Income Security Act of 1974, as amended, and the regulations
        and rulings thereunder (“ERISA”)
        which
        is subject to the provisions of Title IV of ERISA, or (ii) a “multiemployer
        plan” as such term is defined in Section
        4001
        of
        ERISA. No Company has provided, or agreed to provide, benefits under any
        health
        Plan to any former employee or dependent of such employee for periods subsequent
        to the severance of such employee’s employment, other than as specifically
        required under Section
        4980B
        of the
        IRC. There has been no Reportable Event or prohibited transaction (within
        the
        meaning of Section
        486
        of ERISA
        and Section
        4975
        of the
        IRC) with respect to any Plan, all contributions to any Plan have been made
        in
        cash or stock and, there have been no loans or other extensions of credit,
        except loans to participants in Plans, which loans are and have been in
        compliance with Section
        408
        of
        ERISA.

       

      Conwell,
        FX, Cartage, Borrower and LML have adopted, and all participating employees
        are
        covered by, the Conwell Voluntary Employees Injury Benefit Plan identified
        on
Schedule
        4.6.
        The
        Conwell Voluntary Employees Injury Benefit Plan is an “Employee
        Welfare Benefit Plan”
as
        defined in Section
        3(1)
        of
        ERISA. All provisions of the Conwell Voluntary Employees Injury Benefit Plan
        are
        governed by ERISA.

       

      Section
        4.7  Purpose
        of Advances and Letters of Credit

       

      The
        proceeds of the Advances hereunder will be used for working capital purposes
        of
        the Companies, to pay Reimbursement Obligations, for Capital Expenditures
        permitted by Section
        5.2(h)
        and for
        other general corporate purposes. None of the proceeds of the Loans will
        be
        used, directly or indirectly, for the purpose, whether immediate, incidental
        or
        ultimate, of purchasing or carrying any Margin Stock and none of such proceeds
        will be used in violation of applicable Law (including, without limitation,
        the
        Margin Regulations). The Letters of Credit will be issued in the ordinary
        course
        of the Companies’ businesses, primarily in connection with potential insurance
        claims.

       

      Section
        4.8  Ownership
        of the Companies

       

      (i)
        Parent owns all of the issued and outstanding capital stock of FFE, Express,
        Cartage and Middleton (ii) FFE owns all of the issued and outstanding stock
        of
        Borrower, Conwell, FX, Logistics and Lisa, (iii) FX owns all of the issued
        and
        outstanding capital stock of CPI, and (iv) except as provided in this
Section
        4.8,
        none of
        the Companies has any Other Subsidiary.

       

      Section
        4.9  Existing
        Indebtedness

       

      Except
        as
        fully described in Schedule
        4.9
        attached
        hereto (the “Existing
        Indebtedness”),
        none
        of the Companies is directly, indirectly or contingently obligated with respect
        to any Indebtedness.

       

      Section
        4.10  Rights
        in Properties; Existing Liens

       

      Each
        of
        the Companies has good indefeasible title to or valid leasehold interests
        in its
        properties and assets, real and personal, including the properties, assets
        and
        leasehold interests reflected in the Financial Statements described in
Section
        4.2,
        and
        none of such properties or assets is subject to a Lien other than Permitted
        Liens .

       

      Section
        4.11  Material
        Agreements

       

      Attached
        hereto as Schedule
        4.11,
        is a
        description of all material agreements to which any Company is a party or
        its
        assets may be bound or affected.

       

      Section
        4.12  Environmental
        Matters.

       

      (a)  Each
        of
        the Companies is in compliance in all material respects with all federal,
        state
        and local Laws now applicable to its business and operations or which (to
        its
        knowledge) will be applicable thereto relating to pollution control and
        environmental contamination, including, but not limited to, all Laws and
        regulations governing the generation, use, collection, treatment, storage,
        transportation, recovery, removal, discharge or disposal of Hazardous
        Materials.

       

      (b)  To
        the
        best of each Company’s knowledge, there are no presently outstanding allegations
        that any Company is now or at any time prior hereto was in material violation
        of
        such Laws; there are no material administrative or judicial proceedings
        presently pending against any Company pursuant to such Laws or regulations;
        and
        there is no material claim presently outstanding against any Company which was
        asserted pursuant to such Laws.

       

      (c)  There
        are
        no facts or circumstances known to any Company that could reasonably be expected
        to form the basis for the assertion of any material claim against any Company
        relating to environmental matters, including, but not limited to, any claim
        arising from past or present environmental practices asserted under CERCLA,
        RCRA
        or any other federal, state or local environmental statute.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        4.13  Common
        Enterprise

       

      Each
        Company expects to derive benefit from this Agreement, both on its separate
        capacity and as a member of an affiliated and integrated corporate
        group.

       

      Section
        4.14  Workers’
        Compensation

       

      Neither
        Borrower nor any of the other Companies are subscribers to the Texas Workers’
Compensation Act. Borrower and each other Company has taken all reasonable
        precautions that may be necessary or appropriate to minimize the risk of
        loss
        associated with claims that would otherwise be covered by the Texas Workers’
Compensation Act. Such precautions include, as appropriate and in consideration
        of the nature of. each employee’s duties, without limitation, (i) the
        implementation of safety programs, employee training programs, drug screening
        of
        employees and pre-employment physicals, and (ii) the purchasing of insurance
        with substantial and reasonable adequate coverage available for such
        risks.

       

      Section
        4.15  Solvency

       

      On
        the
        Closing Date and on the date of each Loan and the date of issuance of each
        Letter of Credit, each of the Companies is, and after giving effect to the
        transactions contemplated hereby and the requested Loan or Letter of Credit,
        will be, Solvent.

       

      ARTICLE
        V

      CERTAIN
        COVENANTS OF THE COMPANIES

       

      Section
        5.1  Affirmative
        Covenants

       

      Until
        the
        Obligations have been paid and performed in full and the obligation of the
        Banks
        to make Loans or issue Letters of Credit have been irrevocably terminated,
        the
        Companies shall:

       

      (a)  Compliance
        Certificate.
        On or
        before the forty-fifth (45th)
        day
        after the end of the first, second and third quarters of each fiscal year
        of
        Parent, and on or before ninetieth (90th)
        day
        after the fourth quarter of each fiscal year of Parent, deliver to each Bank
        a
        Compliance Certificate.

       

      (b)  Financial
        Statements.
        Deliver
        to each Bank, as soon as practicable, and (i) in any event within ninety
        (90)
        days after the end of each fiscal year of Parent, complete and detailed
        Financial Statements (prepared on a consolidated basis), including balance
        sheet, operating statement, reconciliation of earned surplus and such supporting
        schedules as any Bank may request, accompanied by the certificate of a firm
        of
        independent public accountants reasonably acceptable to the Banks that such
        statements have been prepared in accordance with GAAP and fairly present
        the
        consolidated financial condition of the Companies during the fiscal year
        just
        ended, and that during the course of their audit of the Companies, nothing
        came
        to their attention that caused them to believe the Companies were not in
        compliance with the terms of Subsections 5.1(f),
        5.1(k),
        5.1(m),
        5.2(a) and 5.2(f),
        (ii) in
        any event within forty-five (45) days after the end of the first, second
        and
        third calendar quarter of each fiscal year, consolidated balance sheets of
        the
        Companies as of the close of such quarter, and consolidated operating statements
        of the Companies for the part of the fiscal year ended at the close of such
        quarter, accompanied by the certificate of the Chief Financial Officer or
        Treasurer of Parent that such statements are true and correct, were prepared
        in
        accordance with GAAP and fairly present the consolidated financial conditions
        and results of operations of the Companies, and (iii) after a request by
        any
        Bank, such other information pertaining to the Companies and their affairs
        as
        such Bank shall from time to time request in writing.

       

      (c)  Insurance.
        (i)
        Maintain, and cause each other Company to maintain, insurance with such
        insurance companies, in such amounts, and covering such risks as shall be
        satisfactory to the Administrative Agent and the Collateral Agent, with a
        policy
        limit of not less than $25,000,000 per occurrence and with loss payable to
        the
        Administrative Agent and the Collateral Agent; provided that the Companies
        shall
        be permitted to self-insure for exposure up to $6,000,000 per occurrence
        of the
        first $10,000,000 of exposure of such occurrence but shall not self-insure
        for
        amounts in excess of $6,000,000 without the prior written consent of the
        Required Banks; provided further, that the Companies shall be permitted to
        100%
        self-insure for the exposure that may arise from or relate in any respect
        to the
        physical damage to or loss of the Vehicles; and (ii) deliver to the
        Administrative Agent certificates evidencing such insurance and, within ninety
        (90) days after the close of each fiscal year of Borrower, a report certified
        by
        the Chief Financial Officer or Vice President of Finance of Borrower describing
        all insurance of the Companies in force as of the close of the fiscal year
        just
        ended. 

       

      (d)  Taxes.
        Pay and
        discharge, and cause each other Company to pay and discharge, before delinquent,
        all Taxes assessed upon any Company or any of the assets of any Company,
        or any
        part thereof; provided, however, that any Company may defer the payment of
        any
        Taxes (i) which are being diligently contested in good faith by appropriate
        proceedings, and (ii) for which reserves deemed adequate by the Banks have
        been
        set aside to the satisfaction of the Banks for the payment thereof; and further
        provided, that, if and to the extent any such contested Taxes are finally
        adjudicated to be valid, Borrower or a Company will promptly discharge them
        and
        for such purpose may use the reserve related thereto.

       

      (e)  Operating
        Rights, etc.
        Maintain and preserve, and cause each other Company to maintain and preserve,
        its Operating Rights, licenses, franchises, certificates, corporate
        qualification and good standing in all appropriate states and other appropriate
        authorities necessary to carry on its businesses, as an interstate and
        intrastate motor carrier or otherwise, in all states in which it does
        business.

       

      (f)  Fixed
        Charge Coverage Ratio.
        Maintain a Fixed Charge Coverage Ratio at all times equal to or greater than
        1.25 to 1.00. “Fixed
        Charge Coverage Ratio”
shall
        mean, as of the date of any determination thereof for the twelve (12) month
        period ending as of the date of any determination, the ratio of (i) the amount
        of the Companies’ consolidated EBITDAR to (ii) the amount of the Companies’
consolidated Fixed Charges; all as determined in conformity with GAAP.
“EBITDAR”
means,
        for any period and any Person the total of the following, each calculated
        without duplication, for such Person on a consolidated basis for such period:
        (a) Net Income; plus
        (b) any
        provision for (or minus any benefit from) income or franchise taxes included
        in
        determining Net Income; plus
        (c)
        interest expense deducted in determining Net Income; plus
        (d)
        amortization and depreciation expense deducted in determining Net Income;
        plus
        (e)
        lease and rental expenses paid under operating leases or rental agreements
        involving assets that are intended to produce income and deducted in determining
        Net Income. “Fixed
        Charges”
means
        all interest expenses, the amount of lease and rental expenses associated
        with
        all operating leases and rental agreements that are not cancelable within
        the
        immediately subsequent 12-month period, taxes actually paid, the portion
        of
        long-term debt actually paid or due but not paid and lease expenses under
        capitalized leases. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (g)  Information
        and Other Documents, New Entities.
        Except
        as otherwise may be provided in Section
        9.14,
        cause
        each New Entity to execute and deliver to Administrative Agent (i) a Guaranty
        Agreement, (ii) an agreement in the form of Exhibit
        E
        attached
        hereto with the blanks completed accurately, (iii) a Security Agreement in
        substantially the form of Exhibit
        G
        hereto,
        and (iv) a Vehicles Security Agreement in substantially the form of Exhibit
        H
        hereto
        and deliver, and cause each Company to deliver, to the Banks such information
        (not otherwise required to be furnished herein) respecting the business affairs,
        assets, and liabilities of any of the Companies, and such opinions,
        certifications and documents, in addition to those herein mentioned, as any
        Bank
        may reasonably request, and allow, and cause each other Company to allow,
        the
        Banks or their agents to inspect any of the records and properties of any
        Company, from time to time, during reasonable business hours.

       

      (h)  Payment
        of Debts.
        Pay and
        discharge, and cause each other Company to pay and discharge, when due all
        debts, liabilities and obligations of Borrower and each other Company; provided
        that the covenant contained in this Subsection is solely for the benefit
        of the
        Banks and their successors and assigns; and provided further that neither
        Borrower nor any other Company shall be required to pay any such debt, liability
        or obligation if the validity thereof is being diligently contested in good
        faith and reserves deemed adequate by the Banks have been recorded therefor
        in
        accordance with GAAP.

       

      (i)  Maintenance
        of Existence, Assets.
        Maintain, and cause each other Company to maintain, its corporate and legal
        existence, and keep, and cause each other Company to keep, all assets in
        good
        repair, working order and condition, and from time to time make all necessary
        and proper repairs, renewals, replacements, additions, betterments and
        improvements thereto, to the end that the business of Borrower and each other
        Company may be properly, efficiently and advantageously conducted at all
        times
        in accordance with sound and prudent standards of business
        management.

       

      (j)  Expenses.

       

      (i)  Pay
        (A)
        all reasonable expenses incurred by the Administrative Agent, the Collateral
        Agent and their respective Affiliates, including the reasonable fees, charges
        and disbursements of counsel for the Administrative Agent and the Collateral
        Agent, in connection with the syndication of the credit facilities provided
        for
        herein, the preparation and administration of this Agreement, the other Loan
        Papers or any amendments, modifications or waivers of the provisions hereof
        or
        thereof (whether or not the transactions contemplated hereby or thereby shall
        be
        consummated), (B) all reasonable expenses incurred by the Issuing Bank in
        connection with the issuance, amendment, renewal or extension of any Letter
        of
        Credit or any demand for payment thereunder, (C) all expenses incurred by
        the
        Administrative Agent, the Collateral Agent, the Issuing Bank, and, after
        a
        Default, any Bank, including the fees, charges and disbursements of any counsel
        for the Administrative Agent, the Collateral Agent, the Issuing Bank or any
        Bank
        in connection with the enforcement or protection of its rights in connection
        with this Agreement and the other Loan Papers, including its rights under
        this
        Section, or in connection with the Loans made or Letters of Credit issued
        hereunder, including all such expenses incurred during any workout,
        restructuring or negotiations in respect of such Loans or Letters of Credit,
        and
        including all costs and expenses in connection with the repossession, storage,
        or sale of Vehicles or other Collateral and the collection of accounts, (D)
        all
        transfer, stamp, documentary, or other similar taxes, assessments or charges
        levied by any Tribunal in respect of this Agreement or any of the other Loan
        Papers, (v) all costs, expenses, assessments and other charges incurred in
        ,
        connection with any filing, registration, recording, or perfection of any
        security interest or Lien contemplated by this Agreement or any other Loan
        Paper, and (vi) all other costs and expenses incurred by the Administrative
        Agent or the Collateral Agent in connection with this Agreement, any other
        Loan
        Paper or the Collateral, including without limitation costs, fees, expenses
        and
        other charges incurred in connection with performing or obtaining any audit
        or
        appraisal in respect of the Collateral or for any title searches, filing
        fees,
        recording costs and lien searches.

       

      (ii)  WHETHER
        OR NOT ANY LOAN IS EVER FUNDED, INDEMNIFY ADMINISTRATIVE AGENT, COLLATERAL
        AGENT
        AND THE BANKS AND HOLD ADMINISTRATIVE AGENT, COLLATERAL AGENT AND THE BANKS
        HARMLESS FROM AND AGAINST ANY AND ALL LIABILITIES, LOSSES, DAMAGES, COSTS
        AND
        EXPENSES OF ANY KIND (INCLUDING, WITHOUT LIMITATION, EXPENSES OF LITIGATION,
        COURT COSTS AND THE REASONABLE FEES AND DISBURSEMENTS OF COUNSEL FOR
        ADMINISTRATIVE AGENT, COLLATERAL AGENT AND THE BANKS (OR OF ANY OTHER PERSON
        ENGAGED BY ADMINISTRATIVE AGENT, COLLATERAL AGENT OR ANY BANK) IN CONNECTION
        WITH ANY INVESTIGATIVE, ADMINISTRATIVE OR JUDICIAL PROCEEDING, WHETHER OR
        NOT
        ADMINISTRATIVE AGENT, COLLATERAL AGENT OR ANY BANK SHALL BE DESIGNATED A
        PARTY
        THERETO) WHICH MAY BE INCURRED BY ADMINISTRATIVE AGENT, COLLATERAL AGENT
        OR ANY
        BANK, RELATING TO OR ARISING OUT OF THIS AGREEMENT OR THE OTHER LOAN PAPERS
        OR
        ANY ACTUAL OR PROPOSED USE OF PROCEEDS OF THE LOANS HEREUNDER; PROVIDED,
        THAT,
        ADMINISTRATIVE AGENT, COLLATERAL AGENT AND THE BANKS SHALL NOT HAVE THE RIGHT
        TO
        BE INDEMNIFIED HEREUNDER FOR THEIR OWN OR THEIR REPRESENTATIVE’S OR
        ADMINISTRATIVE AGENT’S OR COLLATERAL AGENT’S GROSS NEGLIGENCE OR WILLFUL
        MISCONDUCT AS DETERMINED BY A COURT OF COMPETENT JURISDICTION. IT IS THE
        EXPRESS
        INTENTION OF THE PARTIES HERETO THAT THE- INDEMNITY PROVIDED FOR HEREIN IS
        INTENDED TO AND SHALL INDEMNIFY AND PROTECT ADMINISTRATIVE AGENT, COLLATERAL
        AGENT AND THE BANKS FROM THE CONSEQUENCES OF THEIR OWN NEGLIGENCE (AS OPPOSED
        TO
        GROSS NEGLIGENCE OR WILLFUL MISCONDUCT), WHETHER OR NOT THAT NEGLIGENCE IS
        THE
        SOLE OR CONCURRING CAUSE OF ANY LIABILITY, LOSS, DAMAGE, COST OR EXPENSE
        OF ANY
        KIND.

       

      (iii)  Any
        amount to be paid under this Subsection to Administrative Agent, Collateral
        Agent or any Bank shall be a demand obligation owing by Borrower and if not
        paid
        within fifteen (15) days of demand by Administrative Agent, Collateral Agent
        or
        such Bank thereof shall bear interest from the date of expenditure by
        Administrative Agent, Collateral Agent or such Bank until paid at the Highest
        Lawful Rate.

       

      (iv)  The
        obligations of Borrower under this Subsection shall survive payment of the
        Obligations and assignment of any right hereunder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (k)  Leverage
        Ratio.
        Maintain a Leverage Ratio equal to or less than 2.50 to 1.00. The term
“Leverage
        Ratio”
means,
        as of the date of any determination thereof, the ratio of (i) Funded Debt
        of the
        Companies on a consolidated basis as of such measurement date to (ii) EBITDAR
        of
        the Companies on a consolidated basis for the twelve (12) month period then
        ending, all as determined in conformity with GAAP. “Funded
        Debt”
means
        as to any Person at any time (without duplication) (a) all obligations of
        such
        Person for borrowed money, including without limitation any notes payable
        to the
        seller in connection with any acquisition and the Loans; (b) all obligations
        of
        such Person evidenced by bonds, notes, debentures, or other similar instruments;
        (c) the aggregate minimum amount of all lease or rental payments to be paid
        under operating leases or rental agreements that are not cancelable; (d)
        all
        capitalized lease obligations of such Person; (e) all obligations of others,
        which such Person has Guaranteed or given surety for or for which such Person
        has otherwise personally secured or indemnified such others; (f) all obligations
        secured by a Lien existing on property owned by such Person, whether or not
        the
        obligations secured thereby have been assumed by such Person or are non-recourse
        to the credit of such Person; (g) all reimbursement obligations of such Person
        (whether contingent or otherwise) in respect of letters of credit, bankers’
acceptances, surety or other bonds and similar instruments (including the
        Reimbursement Obligations).

       

      (l)  Borrowing
        Base Reports.
        Deliver
        to each Bank, as soon as possible, and in any event on or before the forty-fifth
        (45th)
        day
        after and as of the end of each of the first three quarters of each fiscal
        year
        of the Parent and on or before the ninetieth (90th)
        day
        after the fourth quarter of each fiscal year of Parent, a Borrowing Base
        Report
        dated as of the end of such calendar quarter; provided,
        however
        that if Borrowing Base Availability as determined on the most recent Borrowing
        Base Report is less than $10,000,000, thereafter monthly Borrowing Base Reports
        will be furnished within 30 days after the end of each calendar month and
        provided
        further
        that if
        such Borrowing Base Availability as determined on the most recent Borrowing
        Base
        Report is less than $3,000,000, thereafter weekly Borrowing Base Reports
        shall
        be furnished within five (5) days after the end of each week; however, if
        the
        Borrowing Base Availability as determined on a Borrowing Base Report is less
        than, respectively, $10,000,000 or $3,000,000, and as a result, the intervals
        for the delivery of Borrowing Base Reports become monthly or weekly respectively
        as provided above, but thereafter the Borrowing Base Availability (as determined
        upon the applicable Borrowing Base Report) returns respectively to $10,000,000
        or more, or $3,000,000 or more, the applicable interval for the delivery
        of
        Borrowing Base Reports shall then immediately return to, as applicable,
        quarterly or monthly. For purposes of this Section of this Agreement, upon
        the
        Closing Date, the determination of the applicable interval for the delivery
        of
        the Borrowing Base Reports thereafter shall be based on the Borrowing Base
        Availability determined on the last Borrowing Base Report delivered by the
        Borrower prior to the Closing Date.

       

      (m)  ERISA.
        Immediately upon becoming aware of the occurrence of any event or condition
        which has the result that any of the representations or warranties contained
        in
Section 4.6,
        if made
        on and again as of any date on or after the date of this Agreement, cease
        to be
        true, Borrower shall give the Banks a written notice specifying (i) the nature
        of such events or condition, (ii) what action Borrower and the other Companies
        are taking or propose to take with respect thereto, and (iii) when known,
        any
        action taken by the. Internal Revenue Service or the Department of Labor
        with
        respect thereto. With respect to any Plan maintained or adopted by any Company,
        such Company will at all times make prompt payments of contributions required
        to
        be made to meet the minimum funding standards of ERISA.

       

      (n)  Laws.
        Each
        Company will comply with the provisions of any and all Laws, and with the
        provisions of all agreements, documents and instruments material to its business
        and operations, and maintain its ability to perform its obligations under
        all
        such agreements, documents and instruments.

       

      (o)  Workers’
        Compensation.
        Any
        Company that is or becomes a nonsubscriber to the Texas Workers’ Compensation
        Act shall take all reasonable precautions that may be necessary or appropriate
        from time to time to minimize the risk of loss to Borrower and the other
        Companies associated with claims that would otherwise be covered by the Texas
        Workers’ Compensation Act if such, Company had continued to Subscribe to such
        Act. Such precautions shall include, without limitation, (i) the implementation
        of safety programs, employee training programs, drug screening of employee
        and
        pre-employment physical (unless prohibits by law), (ii) the purchasing of
        insurance with substantial and reasonably adequate coverage available for
        such
        risks and (iii) the maintenance of a welfare benefit plan, identical or similar
        to the Injury Benefit Plan, that is governed by ERISA in all
        respects.

       

      (p)  Projections.
        As soon
        as available and in any event before December 15 of each fiscal year of Parent,
        Borrower will deliver (i) a forecasted consolidated balance sheet and statements
        of income and cash flow of Parent and the Subsidiaries on a quarterly basis,
        including the assumptions utilized in the preparation of such projections
        (in
        narrative form) for the two (2) forthcoming fiscal years and a proforma
        projection of Parent’s compliance with the financial covenants in this Agreement
        for the same period. 

       

      (q)  Further
        Assurances and Collateral Matters.
        (i) The
        Parent will, and will cause each other Company to execute and deliver such
        further documentation and take such further action as may be requested by
        the
        Administrative Agent or the Collateral Agent to carry out the provisions
        and
        purposes of the Loan Papers and to create, preserve, protect and. perfect
        the
        Liens of Administrative Agent and Collateral Agent, respectively, for the
        benefit of itself and the Banks in the Collateral. (ii) In the event the
        amount
        of Borrowing Base Availability is less than $5,000,000 or any requested Loan
        or
        Letter of Credit would cause Borrowing Base Availability to be less than
        $5,000,000, Parent shall and shall cause each of the Subsidiaries to cause
        the
        perfection of the Lien of the Collateral Agent, for the benefit of the Banks,
        in
        Vehicles having an aggregate Orderly Liquidation Value such that Borrowing
        Base
        Availability is at all times greater than or equal to $5,000,000. In such
        event
        or in the event Borrower otherwise elects to include any of the Vehicles
        in the
        Borrowing Base, Parent will cause such Lien in such Vehicles to be so perfected
        pursuant to documentation acceptable to the Required Banks, and will execute
        and
        deliver, and will cause the Subsidiaries to execute and deliver, to Collateral
        Agent and the Banks such documents, in form and substance satisfactory to
        Collateral Agent and its counsel and the Required Banks, as may be necessary
        or
        appropriate to evidence and provide for the same, including without limitation
        the original certificates of title for such Vehicles, applications for notation
        of Lien, and any and all other documentation and action necessary to cause
        the
        Lien of the Collateral Agent in each such Vehicle to be recorded and noted
        (in
        accordance with the applicable recording and notation requirements and other
        Governmental Requirements of each appropriate state and other jurisdiction)
        on
        the certificate of title of each such Vehicle. Parent and the Subsidiaries
        shall
        pay all fees, costs, expenses and taxes relating to the foregoing. (iii)
        Upon
        written request from Borrower, Collateral Agent shall, from time to time,
        take
        all steps necessary to release the Lien in favor of Collateral Agent and
        the
        Banks against any one or more Vehicles; provided,
        Collateral Agent shall not be obligated to release any such Lien unless (A)
        the
        Vehicle being released from the Lien is being sold or otherwise disposed
        in the
        ordinary course of business and for fair market value; (B) after giving effect
        to the Lien release, (i) the outstanding amount of the Obligations will not
        be
        greater than the Borrowing Base, and (ii) the Borrowing Base Availability
        will
        not be less than $5,000,000; and (C) no Default or Potential Default exists
        or
        would result therefrom.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (r)  Accounts
        Receivable Report.
        As soon
        as available, and in any event on or before the forty-fifth (45th)
        day
        after the end of each of the first three quarters of each fiscal year of
        the
        Parent and on or before the ninetieth (90th)
        day
        after the fourth quarter of the fiscal year of the Parent a summary accounts
        receivable aging report for Borrower showing the aggregate amount of all
        accounts receivable of Borrower that are 1-30, 31-60, 61-90, and over 90
        days
        past the invoice date; provided,
        however
        that if Borrowing Base Availability as determined on the most recent Borrowing
        Base Report is less than $10,000,000, thereafter monthly Accounts Receivable
        Reports will be furnished within 30 days after the end of each calendar month
        and provided
        further
        that if
        such Borrowing Base Availability as determined on the most recent Borrowing
        Base
        Report is less than $3,000,000, thereafter weekly Accounts Receivable Reports
        shall be furnished within five (5) days after the end of each week; however,
        if
        the Borrowing Base Availability as determined on a Borrowing Base Report
        is less
        than, respectively, $10,000,000 or $3,000,000, and as a result the intervals
        for
        the delivery of Accounts Receivable Reports become monthly or weekly
        respectively as provided above, but thereafter the Borrowing Base Availability
        as determined upon the Applicable Accounts Receivable Report returns
        respectively to $10,000,000 or more, or $3,000,000 or more, the applicable
        interval for the delivery of Accounts Receivable Reports shall then immediately
        return to, as applicable, quarterly or monthly. For purposes of this Section
        of
        this Agreement, upon the Closing Date, the determination of the applicable
        interval for the delivery of the Accounts Receivable Reports thereafter shall
        be
        based on the Borrowing Base Availability determined on the last Accounts
        Receivable Report delivered by the Borrower prior to the Closing
        Date.

       

      (s)  Inspections;
        Collateral Audits; Appraisals.
        Upon
        reasonable notice (which may be telephonic notice), at all reasonable times
        and
        as often as the Administrative Agent or the Collateral Agent may request,
        permit
        any authorized representative designated by the Administrative Agent or the
        Collateral Agent, including without limitation any Dallas area-based consultant
        engaged by the Administrative Agent or the Collateral Agent, together with
        any
        authorized representatives of any Bank desiring to accompany the Administrative
        Agent or the Collateral Agent, to visit and inspect the financial records
        of the
        Companies and to make extracts from such financial records and permit any
        Dallas
        area-based authorized representative designated by the Administrative Agent
        or
        the Collateral Agent (together with any accompanying representatives of any
        Bank) to discuss the affairs, finances and condition of the Companies with
        the
        appropriate financial officer and such other officers as the Parent or other
        Company shall deem appropriate; and the Companies will cooperate with the
        Administrative Agent and the Collateral Agent and exert its best efforts
        to
        arrange for the Administrative Agent or the Collateral Agent, their respective
        Dallas area-based authorized representatives (including consultants) and
        any
        accompanying authorized representative of any Bank to meet with the Companies’
independent public accountants and each Company agrees to permit such
        accountants to discuss the affairs, finances and condition of the Companies
        with
        the Administrative Agent, the Collateral Agent and such representatives.
        The
        Administrative Agent agrees that it shall schedule any meeting with any such
        independent public accountant through the Parent, and an officer of the Parent
        shall have the right to be present at any such meeting. The Administrative
        Agent, the Collateral Agent and any such consultant of the Administrative
        Agent
        or the Collateral Agent shall each have the right to examine (and any authorized
        representatives of any Bank shall have the right to accompany the Administrative
        Agent or the Collateral Agent during any such examination), as often as the
        Administrative Agent or the Collateral Agent may request, the existence and
        condition of the Collateral, books and records of the Companies and to review
        their compliance with the terms and conditions of this Agreement and the
        other
        Loan Papers, subject to governmental confidentiality requirements. After
        the
        occurrence of a Default or Potential Default, the Administrative Agent and
        the
        Collateral Agent shall each also have the right to verify with any and all
        customers of the Companies the existence and condition of the accounts
        receivable of the Companies, as often as the Administrative Agent or the
        Collateral Agent may require, without prior notice to or consent of any of
        the
        Companies. Without in any way limiting the foregoing, (a) the Administrative
        Agent and the Collateral Agent shall each have the joint right to conduct
        joint
        accounts receivable audits at the Companies’ expense as often as the
        Administrative Agent, the Collateral Agent or any Bank may request (but
        initially scheduled for once per year prior to the occurrence of a Default
        or
        Potential Default), and (b) the Administrative Agent or the Collateral Agent
        shall have the right to order and obtain Vehicle Appraisals, at the Companies’
expense, not to exceed eight (8) Vehicle Appraisals during the three (3)
        year
        period following the Closing Date, prior to the occurrence of a Default or
        Potential Default, and as often as the Administrative Agent or Collateral
        Agent
        may request at any time after such period or after the occurrence of a Default
        or Potential Default. Without in any way limiting the foregoing, each Company
        agrees to cooperate in all respects with the Administrative Agent, the
        Collateral Agent and their respective representatives and consultants in
        connection with any and all inspections, examinations and other actions taken
        by
        the Administrative Agent, the Collateral Agent or any of their respective
        representatives or consultants pursuant to this Section. The Companies hereby
        jointly and severally agree to promptly pay, upon demand by the Administrative
        Agent, the Collateral Agent or the applicable Bank, any and all reasonable
        fees
        and expenses incurred by the Administrative Agent, the Collateral Agent or
        any
        Bank in connection with any inspection, examination or review permitted by
        the
        terms of this Section.

       

      (t)  Notices
        of Material Events.
        Furnish
        to the Administrative Agent and each Bank prompt written notice of the
        following:

       

      (i)  the
        occurrence of any Default or Potential Default;

       

      (ii)  the
        filing or commencement of any action, suit or proceeding by or before any
        Tribunal or arbitrator against or affecting any Company or any Affiliate
        thereof
        that, if adversely determined, could reasonably be expected to result in
        a
        Material Adverse Effect; and

       

      (iii)  any
        other
        development that results in, or could reasonably be expected to result in,
        a
        Material Adverse Effect.

       

      Each
        notice delivered under this Section shall be accompanied by a statement of
        a
        financial officer or other executive officer of the Parent setting forth
        the
        details of the event or development requiring such notice and any action
        taken
        or proposed to be taken with respect thereto.

       

      Section
        5.2  Negative
        Covenants

       

      Until
        the
        Obligations have been paid and performed in full and the obligation of the
        Banks
        to make Loans and to issue Letters of Credit have been irrevocably terminated,
        none of the Companies shall, directly or indirectly, without the prior written
        consent of the Banks:

       

      (a)  Minimum
        Consolidated Tangible Net Worth.
        Permit,
        as of the last day of any fiscal quarter, Parent's Consolidated Tangible
        Net
        Worth to be less than the sum of (i) $80,000,000, plus (ii) fifty percent
        (50%)
        of the positive Net Income of the Companies for each fiscal quarter ending
        after
        June 30, 2006 (i.e., any negative Net Income for a fiscal quarter shall not
        reduce the minimum Consolidated Tangible Net Worth), plus
        (iii)
        one hundred percent (100%) of the net cash proceeds from any issuances of
        equity
        securities by Parent or any other Company or other contributions to the capital
        or equity of Parent or any other Company. 

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)  Transfer
        of Operating Rights.
        Create,
        incur, grant, assume or suffer to exist any Lien on, nor sell, transfer or
        otherwise dispose of, any present or future Operating Rights of any Company,
        including but not limited to franchises, certificates, authorizations, permits
        and licenses.

       

      (c)  Loans,
        Investments, and Mergers.
        Make
        any loan to or investment in, nor purchase stock or other securities of,
        nor
        merge or consolidate with, nor purchase all or substantially all of the assets
        of, any Person other than Borrower
        or another Company, except (i) mergers and consolidations of two or more
        Companies or acquisitions of a Company by another Company, provided no Default
        or Potential Default exists; (ii) secured loans to owner-operators who have
        independent contractor agreements with Borrower or any other Company not
        to
        exceed $2,000,000 in the aggregate outstanding at any time; (iii) the W&B
        Note; (iv) indebtedness of purchasers to the Companies for the purchase
        price of Vehicles sold by the Companies to such purchasers, provided that
        such
        Indebtedness together with loans made pursuant to clause (v) of this Subsection
        (c) shall not exceed $2,000,000 in the aggregate outstanding at any time;
        (v) loans, other than the foregoing, provided that such loans together with
        indebtedness pursuant to clause (iv) of this Subsection (c) shall not exceed
        $2,000,000 in the aggregate outstanding at any time; (vi) Permitted
        Investments, (vii) other investments from time to time in an amount
        outstanding at any time less than or equal to $100,000;
        and
        (viii) expenditures for acquisitions involving a Person other than a Company
        in
        an amount not to exceed $10,000,000 during any fiscal year of
        Borrower.

       

      (d)  Contingent
        Liabilities.
        Assume,
        Guarantee, purchase, agree to purchase or suffer to exist any other liability,
        direct or indirect, for the payment of any Indebtedness, except to the Banks,
        of
        any Person, other than Borrower or another Company, in an aggregate amount
        in
        excess of $10,000,000 at any time outstanding.

       

      (e)  Dividends
        and Distributions.
        Declare, order, pay, make or set apart any sum for (a) any dividend or other
        distribution, direct or indirect, on account of any shares of any class of
        stock
        of Parent or any other Company now or hereafter outstanding; (b) any redemption,
        conversion, exchange, retirement, sinking fund or similar payment, purchase
        or
        other acquisition for value, direct or indirect, of any shares of any class
        of
        stock of Parent or any other Company now or hereafter outstanding; or (c)
        any
        payment made to retire, or to obtain the surrender of, any outstanding warrants,
        options or other rights to acquire shares of any class of stock of Parent
        or any
        other Company now or hereafter outstanding except:

       

      (i)  If
        no
        Default or Potential Default exists, Parent may declare and pay cash dividends
        and/or redeem its common stock from time to time provided (A) that the amount
        of
        such dividends and/or such redemption prices declared or paid during any
        fiscal
        quarter of Parent shall not exceed 100% of the positive Net Income of Parent
        and
        its consolidated subsidiaries for the immediately preceding fiscal quarter,
        (B)
        that Parent and each other Company would otherwise be in compliance with
        all
        other financial covenants contained in this Agreement if such financial
        covenants were measured as of the date such dividends are paid or such
        redemptions are made after giving effect to such dividends and/or redemptions,
        and (C) if such dividend is made with any proceeds of death benefits received
        under life insurance policies, the amount of such dividend shall not exceed
        the
        amount of the after-tax proceeds of such death benefit. 

       

      (ii)  The
        Companies may make, declare or pay dividends and make other distributions
        with
        respect to their capital stock to the extent necessary to permit the Borrower
        to
        pay the Obligations and to pay expenses and taxes incurred in the ordinary
        course of business.

       

      (iii)  Borrower
        and any other Company may declare and pay dividends on their common stock
        payable solely in shares of common stock (provided that fractional shares
        may be
        paid in cash).

       

      (f)  Indebtedness.
        Assume,
        create or suffer to exist any Indebtedness except (i) Indebtedness owed to
        the Banks pursuant to the Existing Credit Documents and this Agreement, (ii)
        additional Indebtedness not for borrowed money incurred in the ordinary course
        of business constituting trade payables not more than 90 days past due and
        accrued liabilities, including, without limitation, accrued Taxes and payroll
        obligations, (iii) Indebtedness under Hedge Agreements, and
        (iv) additional Indebtedness for borrowed money incurred in the ordinary
        course of business not to exceed $5,000,000 in the aggregate outstanding
        at any
        time with respect to all Companies.

       

      (g)  Sales
        of Assets.
        Be a
        party to any sale, transfer, or other disposition of all or any part of
        Borrower’s or any other Company’s property, assets or business, except sales of
        Vehicles and other equipment in the ordinary course of business and for fair
        market value or pursuant to vehicle repurchase agreements with manufacturers,
        so
        long as (i) after giving effect to such sale, (1) the outstanding amount
        of the
        Obligations will not be greater than the Borrowing Base, and (2) the Borrowing
        Base Availability will not be less than $5,000,000, and (ii) no Default or
        Potential Default exists or would result therefrom, and in any event will
        not
        sell, transfer or otherwise dispose of any of Parent’s or any other Company’s
        interest in the Subsidiaries (including, without limitation, any of the stock
        of
        the Subsidiaries).

       

      (h)  Capital
        Expenditures.
        Permit
        the aggregate amount of all Capital Expenditures made by the Companies, during
        any twelve (12) month period (net of the proceeds of the sale or exchange
        of any
        fixed assets), to exceed $50,000,000.

       

      (i)  Negative
        Pledge.
        Borrower and each of the other Companies will not create, assume or suffer
        to
        exist any Lien on any asset or property (or any interest therein) now owned
        or
        hereafter acquired by Borrower or any other Company, except: (i) any Lien
        existing pursuant to any order of attachment, distraint or similar legal
        process
        arising in connection with court proceedings so long as the execution or
        other
        enforcement thereof is effectively stayed and the claims secured thereby
        are
        being contested in good faith by appropriate proceedings, and (ii) Permitted
        Liens.

       

      (j)  Transactions
        with Affiliates.
        The
        Companies will not enter into any transaction with any Affiliate except in
        the
        ordinary course and pursuant to the reasonable requirements of their businesses
        and upon fair and reasonable terms no less favorable to the Companies than
        would
        result in a comparable arm’s length transaction with a Person who is not an
        Affiliate; provided,
        however, that the Companies may enter into lease agreements, as lessee, with
        Affiliates for tractors or trailers with lease payments less than or equal
        to
        the aggregate amount of $200,000 per month.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (k)  ERISA.
        No
        Company or other Group Member will (i) establish, maintain or participate
        in any
        way in a Plan that is subject to the provisions of Title IV of ERISA, or
        (ii)
        provide benefits under any health plan to former employees in excess of those
        provided on the date hereof, without the prior written consent of the
        Banks.

       

      (l)  Restrictive
        Agreements.
        Enter
        into, incur or permit to exist any agreement or other arrangement that
        prohibits, restricts or imposes any condition upon (i) the ability of any
        Company to create, incur or permit to exist any Lien upon any of its property
        or
        assets, or (ii) the ability of any Company to pay dividends or other
        distributions with respect to any shares of its capital stock or to make
        or
        repay loans or advances to any other Company or to guarantee Indebtedness
        of any
        other Company; provided
        that (A)
        the foregoing shall not apply to restrictions and conditions imposed by law
        or
        by any of the Loan Papers, (B) clause (i) of the foregoing shall not apply
        to
        restrictions or conditions imposed by any agreement relating to secured
        Indebtedness permitted by this Agreement if such restrictions or conditions
        apply only to the property or assets securing such Indebtedness, and (C)
        clause
        (i) of the foregoing shall not apply to customary provisions in leases and
        other
        contracts restricting the assignment thereof.

       

      (m)  Nature
        of Business.
        Engage
        to any material extent in any business other than businesses of the type
        conducted by the Companies on the Closing Date and businesses reasonably
        related
        thereto.

       

      ARTICLE
        VI

      DEFAULT

       

      As
        used
        herein, the term “Default”
means
        the occurrence of any one or more of the following events:

       

      Section
        6.1  Payment
        of Obligations

       

      The
        failure of Borrower to pay to any Agent or any Bank, as required, when due
        the
        Principal Obligation, or interest thereon, or any part thereof, or any
        Reimbursement Obligation or other amount owing under this Agreement or any
        of
        the Loan Papers (including without limitation Subsections
        2.4,
        2.7(a),
        2.11,
        2.14(d)
        and
5.1(j)),
        and
        such failure continues for a period of five (5) Business Days after the due
        date.

       

      Section
        6.2  Covenants.

       

      (a)  A
        breach
        of any of the covenants in Subsections
        5.1(a),
        5.1(b),
        5.1(e),
        5.1(f),
        5.1(i),
        5.1(k),
        5.1(l),
        5.1(m),
        5.1(n),
        5.1(q),
        5.1(s),
        5.1(t),
        5.1(u)
        or
        Section 5.2.

       

      (b)  The
        failure of Borrower or any other Company to punctually and properly observe,
        keep and perform each of its covenants and agreements in Subsections
        5.1(c),
        5.1(d),
        5.1(g),
        5.1(h),
        or
5.1(r)
        and such
        failure continues for a period of ten (10) days after the discovery of the
        breach by a Company or after notice from Administrative Agent or any
        Bank.

       

      (c)  The
        failure of Borrower or any other Company punctually and properly to observe,
        keep and perform each of its covenants and agreements (other than the covenants
        to pay the Principal Obligation, and interest thereon, the commitment fee,
        the
        Reimbursement Obligations and other amounts, and the covenants specified
        in
Subsections
        6.2(a)
        and
6.2(b)
        contained herein or in any of the other Loan Papers, and such failure continues
        for a period of thirty (30) days after the discovery of the breach by a Company
        or after Administrative Agent notifies Borrower of the breach.

       

      Section
        6.3  Misrepresentation

       

      The
        discovery by Administrative Agent or any Bank that any statement, representation
        or warranty in this Agreement, any other Loan Paper or in any. writing ever
        delivered to Administrative Agent or any Bank pursuant to the provisions
        hereof,
        is false, misleading, or erroneous in any material respect, and the reason
        giving rise to such situation is not corrected to the satisfaction of the
        Banks
        within thirty (30) days after notice thereof has been given by Administrative
        Agent to Borrower.

       

      Section
        6.4  Voluntary
        Debtor Relief

       

      Borrower
        or any other Company shall (i) have entered voluntarily against it an order
        for
        relief under any Debtor Relief Laws, (ii) execute an assignment for the benefit
        of creditors, or (iii) not pay, or admit in writing its inability to pay,
        its
        debts generally as they become due, or (iv) apply for or consent to the
        appointment of a receiver, trustee, custodian or liquidator of it, or of
        all or
        a substantial part of its assets, or (v) file a voluntary petition in bankruptcy
        or a petition or answer seeking reorganization or an arrangement with creditors
        or seeking to take advantage of, or any other relief under, any Debtor Relief
        Laws, or (vi) file an answer admitting the material allegations of, or
        consenting to, or default in, a petition filed against it in any Debtor Relief
        Laws proceeding, or (vii) institute or voluntarily be or become a party to
        any
        other judicial proceedings intended to effect a discharge of its debts, in
        whole
        or in part, or a postponement of the maturity or the collection thereof,
        or a
        suspension of any of the remedial rights of Bank granted in this Agreement
        or
        under any Law.

       

      Section
        6.5  Involuntary
        Debtor Relief

       

      An
        order,
        judgment or decree shall be entered by any court of competent jurisdiction
        approving a petition seeking reorganization of Borrower. or any other Company,
        or appointing a receiver, trustee, custodian or liquidator of Borrower or any
        other Company, or of all or any substantial part of the assets of Borrower
        or
        any other Company, and such order, judgment or decree is not appealed from
        within the time allowed by Law, with a stay of proceedings or supersedes,
        or, if
        appealed from in the manner aforesaid, when such order, judgment or decree
        becomes final, and in any event, if and when such reorganization, receivership,
        trusteeship, custodianship or liquidation proceedings shall have been in
        force
        for sixty (60) days.

       

      Section
        6.6  Judgments

       

      Any
        of
        the Companies fails to pay any money judgment or judgments against it in
        an
        amount greater than $250,000 in the aggregate at least ten (10) days prior
        to
        the date on which any of the assets of any of the Companies may be lawfully
        sold
        to satisfy such judgment.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        6.7  Attachment

       

      The
        failure to have discharged within a period of thirty (30) days after the
        commencement thereof any attachment, sequestration or similar proceedings
        against any of the assets of Borrower or any other Company having an aggregate
        fair market value of $100,000 or more.

       

      Section
        6.8  Default
        of Other Debt

       

      The
        default under any promissory note or other evidence of Indebtedness in an
        amount
        equal to or greater than $500,000 executed by Borrower or any other Company,
        or
        the default by any obligee under any Indebtedness or any other obligation
        in an
        amount equal to or greater than $500,000 under any credit or other agreement
        under which Borrower or any other Company is an obligor.

       

      Section
        6.9  Other
        Agreements

       

      The
        occurrence of any event which would constitute, or with notice or lapse of
        time
        or both could constitute, a default under any chattel mortgage, assignment,
        security agreement, deed of trust, mortgage or other agreement delivered
        to
        Administrative Agent, Collateral Agent or any Bank or under any Loan
        Paper.

       

      Section
        6.10  Change
        in Control

       

      The
        occurrence of any Change in Control.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        VII

      REMEDIES

       

      If
        a
        Default occurs and is continuing, Administrative Agent may, at its election,
        and, at the request of the Required Banks, Administrative Agent shall do
        any one
        or more of the following:

       

      Section
        7.1  Acceleration

       

      Declare
        the entire unpaid balance of the Obligations and all other Indebtedness of
        any
        one or more of Borrower or the other Companies to the Banks and the Agents,
        or
        any of them, or any part thereof, immediately due and payable, whereupon
        it
        shall be due and payable.

       

      Section
        7.2  Loans
        and Letters of Credit

       

      Refuse
        to
        make additional Loans or issue additional Letters of Credit, and thereafter
        the
        Banks shall have no obligation whatsoever to make additional Loans or issue
        additional Letters of Credit. If any Bank or the Issuing Bank refuses to
        make
        additional Loans or issue additional Letters of Credit, all duties and
        obligations of Borrower and the other Companies, and all rights and powers
        of
        Administrative Agent and the Banks, under this Agreement shall continue in
        full
        force and effect until the full and final payment and performance of the
        Obligations.

       

      Section
        7.3  Judgment

       

      Reduce
        any claim to judgment.

       

      Section
        7.4  Rights

       

      Exercise
        any and all rights and remedies which Administrative Agent, the Issuing Bank
        or
        any Bank may have under any Loan Paper, at Law, or in equity, or
        otherwise.

       

      Section
        7.5  Default
        with Respect to Base Rate Loans

       

      If
        a
        Default under the Agreement shall occur and the same shall have been declared
        by
        Administrative Agent, then Borrower shall immediately prepay the outstanding
        Base Rate Loans and all interest accrued thereon if and to the extent the
        same
        is then due and payable.

       

      Section
        7.6  Default
        with Respect to LIBOR Loans

       

      If
        a
        Default under this Agreement shall occur and the same shall have been declared
        by Administrative Agent, then Borrower shall immediately prepay the outstanding
        LIBOR Loans and all interest accrued thereon and all losses and expenses
        in
        connection with such prepayment pursuant to Section
        2.26
        if and
        to the extent the same is then due and payable.

       

      Section
        7.7  Default
        with Respect to Letters of Credit

       

      If
        a
        Default under the Agreement shall occur and the same shall have been declared
        by
        Administrative Agent, then, upon the request of Administrative Agent, Borrower
        shall be required to deposit immediately with Administrative Agent, in
        immediately available funds, an amount equal to (i) the aggregate amount
        of all
        then outstanding Letters of Credit; plus (ii) the aggregate amount of all
        other
        sums due and payable under any of the Loan Papers regarding the Letters of
        Credit (the “Deposit”),
        Borrower’s obligation to pay the Deposit to be absolute and unconditional, the
        Deposit to be deposited in a special interest bearing account with
        Administrative Agent to ensure reimbursement of any drawings under such Letters
        of Credit and payment of all other amounts due and payable under any of the
        Loan
        Papers regarding the Letters of Credit.

       

      Section
        7.8  Automatic
        Acceleration Due to Certain Defaults

       

      Notwithstanding
        anything to the contrary contained herein, if a Default referred to in
Section
        6.4
        or
Section
        6.5
        occurs
        and is continuing, then the entire unpaid balance of the Obligations and
        all
        other Indebtedness of any one or more of Borrower or the other Companies
        to the
        Banks and the Agents, or any of them, shall immediately, and concurrently
        with
        the occurrence of such Default, become due and payable in full without any
        further action or notification of any kind required of any of the Agents
        or any
        of the Banks, including, without limitation, presentment, demand, protest
        or
        notice. of protest, dishonor, intention to accelerate or acceleration, all
        of
        which are expressly hereby waived by Borrower and the other
        Companies.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        VIII

      AGENTS

       

      Section
        8.1  Administrative
        Agent Appointment and Authorization; Administration; Duties

       

      (a)  The
        general administration of the Loan Papers and any other documents contemplated
        by this Agreement shall be by Comerica or its designees, and each Bank hereby
        appoints Comerica as its agent hereunder and under the other Loan Papers
        with
        such powers as are specifically delegated to the Administrative Agent by
        the
        terms of the Loan Papers, together with such other powers as are reasonably
        incidental thereto. Administrative Agent shall not be required to take any
        action with respect to any Default except as directed by the Required Banks.
        In
        the event the Required Banks so direct Administrative Agent to take any action
        hereunder, Administrative Agent agrees to commence taking such action within
        a
        reasonable period of time and to diligently pursue such action or to submit
        its
        resignation pursuant to Section
        8.9.
        Except
        as otherwise provided herein or otherwise agreed to by the Banks and
        Administrative Agent, each of the Banks hereby irrevocably authorizes
        Administrative Agent, at its discretion, to take or refrain from taking such
        actions as Administrative Agent on its behalf and to exercise or refrain
        from
        exercising such powers under the Loan Papers and any other documents
        contemplated by this Agreement as are delegated by the terms hereof or thereof,
        as appropriate, together with all powers reasonably incidental thereto.
        Notwithstanding the foregoing or any term or provision of this Agreement,
        Administrative Agent shall have no duties or responsibilities except as
        expressly set forth in this Agreement or the other Loan Papers.

       

      (b)  Each
        Bank
        irrevocably appoints and authorizes Administrative Agent to hold the Collateral,
        other than the Vehicle Collateral, and enforce the Liens granted to the Banks
        as
        security for the Obligations and to take such action as Administrative Agent
        on
        its behalf and to exercise such powers under this Agreement and the other
        Loan
        Papers as are delegated to Administrative Agent by the terms hereof or thereof,
        together with all such powers as are reasonably incidental thereto, provided,
        however, that, as between and among the Banks, Administrative Agent will
        not
        prosecute, settle or compromise any claim against Borrower or any other Company
        or release or institute enforcement or foreclosure proceedings against any
        Collateral or guaranty securing the Obligations, except with the consent
        of the
        Required Banks. Without limiting the generality of the foregoing, each Bank
        authorizes Administrative Agent to (i) enter into any Loan Papers securing
        payment of the Obligations in the capacity of agent for and on behalf of
        the
        Banks and (ii) to administer all of the Collateral (other than the Vehicle
        Collateral) and to enforce the interests of the Banks therein in accordance
        with
        the Loan Papers. Any action for enforcement of the interests of the Banks
        under
        the Loan Papers shall be taken either as Administrative Agent for the Banks
        or
        directly in the respective names of the Banks, as counsel to Administrative
        Agent may at the time advise. Subject to Section
        9.21,
        the
        Banks consent and agree that any action taken by Administrative Agent or
        with
        the consent or at the direction of the Required Banks as provided herein
        shall
        be taken for and on behalf of all Banks, including those who may not have
        so
        consented or directed, in order to protect or enforce the Liens securing
        the
        Obligations; provided that any Bank may direct Administrative Agent not to
        act
        for or on its behalf in any such proceeding if such Bank executes in favor
        of
        Administrative Agent a release of its rights to share in the benefits of
        any
        such action and a release of its legal and beneficial interest in the Lien
        created by the Loan Papers on the Collateral (other than the Vehicle Collateral)
        which is the subject of such action. Each Bank, Borrower and the other Companies
        agree that Administrative Agent is not a fiduciary for the Banks or for Borrower
        or any other Company but simply is acting in the capacity described herein
        to
        alleviate administrative burdens for all parties hereto and that Administrative
        Agent has no duties or responsibilities to the Banks, Borrower or any other
        Company except those expressly set forth herein.

       

      Section
        8.2  Collateral
        Agent Appointment and Authorization; Administration; Duties.

       

      (a)  If
        Vehicles are pledged as Collateral from time to time, the general administration
        of the Vehicle Collateral, the notation of Liens on applicable certificates
        of
        title and any other documents contemplated by that pledge shall be by LaSalle,
        and each Bank hereby appoints LaSalle as its agent with respect to the Vehicle
        Collateral hereunder and under the other Loan Papers with such powers as
        are
        specifically delegated to the Collateral Agent by the terms of the Loan Papers,
        together with such other powers as are reasonably incidental thereto. Collateral
        Agent shall not be required to take any action with respect to any Default
        except as directed by the Required Banks. In the event the Required Banks
        so
        direct Collateral Agent to take any action hereunder, Collateral Agent agrees
        to
        commence taking such action within a reasonable period of time and to diligently
        pursue such action or to submit its resignation pursuant to Section 8.9.
        Except
        as otherwise provided herein or otherwise agreed to by the Banks and Collateral
        Agent, each of the Banks hereby irrevocably authorizes Collateral Agent,
        at its
        discretion, to take or refrain from taking such actions with respect to the
        Vehicle Collateral as Collateral Agent on its behalf and to exercise or refrain
        from exercising such powers under the Loan Papers and any other documents
        contemplated by this Agreement as are delegated by the terms hereof or thereof,
        as appropriate, together with all powers reasonably incidental thereto with
        respect to the Vehicle Collateral. Notwithstanding the foregoing or any term
        or
        provision of this Agreement, Collateral Agent shall have no duties or
        responsibilities except as expressly set forth in this Agreement or the other
        Loan Papers.

       

      (b)  Each
        Bank
        irrevocably appoints and authorizes Collateral Agent to hold the Vehicle
        Collateral (if any) and enforce the Liens (if any) granted to the Banks as
        security for the Obligations and to take such action as Collateral Agent
        on its
        behalf and to exercise such powers under this Agreement and the other Loan
        Papers as are delegated to Collateral Agent by the terms hereof or thereof,
        together with all such powers as are reasonably incidental thereto, provided,
        however, that, as between and among the Banks, Collateral Agent will not
        prosecute, settle or compromise any claim against Borrower or any other Company
        or release or institute enforcement or foreclosure proceedings against any
        Vehicle Collateral, except with the consent of the Required Banks. Without
        limiting the generality of the foregoing, each Bank authorizes Collateral
        Agent
        to (i) enter into any Loan Papers concerning the Vehicle Collateral securing
        payment of the Obligations in the capacity of agent for and on behalf of
        the
        Banks and (ii) to administer all of the Vehicle Collateral and to enforce
        the
        interests of the Banks therein in accordance with the Loan Papers. Any action
        for enforcement of the interests of the Banks under the Loan Papers shall
        be
        taken either as Collateral Agent for the Banks or directly in the respective
        names of the Banks, as counsel to Collateral Agent may at the time advise.
        Subject to Section 9.21, the Banks consent and agree that any action taken
        by
        Collateral Agent or with the consent or at the direction of the Required
        Banks
        as provided herein shall be taken for and on behalf of all Banks, including
        those who may not have so consented or directed, in order to protect or enforce
        the Liens securing the Obligations; provided that any Bank may direct Collateral
        Agent not to act for or on its behalf in any such proceeding if such Bank
        executes in favor of Collateral Agent a release of its rights to share in
        the
        benefits of any such action and a release of its legal and beneficial interest
        in the Lien created by the Loan Papers on the Vehicle Collateral which is
        the
        subject of such action. Each Bank, Borrower and the other Companies agree
        that
        Collateral Agent is not a fiduciary for the Banks or for Borrower or any
        other
        Company but simply is acting in the capacity described herein to alleviate
        administrative burdens for all parties hereto and that Collateral Agent has
        no
        duties or responsibilities to the Banks, Borrower or any other Company except
        those expressly set forth herein.

       

      Section
        8.3  Advances
        and Payments

       

      On
        the
        date of each Advance, Administrative Agent shall be authorized, but not
        obligated, to advance, for the account of each of the Banks making such Advance,
        the amount of the Advance to be made by it in accordance with its Commitment
        hereunder if and to the extent that such Bank does not make such amount timely
        available to Administrative Agent for advance to Borrower pursuant to this
        Agreement. Each of the Banks agrees to immediately reimburse Administrative
        Agent in immediately available funds for any amount so advanced on its behalf
        by
        Administrative Agent. If any such reimbursement is not made in immediately
        available funds on the same day on which Administrative Agent shall have
        made
        any such amount available on behalf of any Bank, such Bank shall pay interest
        to
        Administrative Agent at a rate per annum equal to Administrative Agent’s cost of
        obtaining overnight funds in the Dallas Federal Funds market. All amounts
        to be
        paid to any of the Banks by Administrative Agent shall be credited to the
        Banks,
        forthwith after collection by Administrative Agent, in immediately available
        funds either by wire transfer or deposit in such Bank’s account with
        Administrative Agent, or as such Bank and the Administrative Agent shall
        from
        time to time agree.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        8.4  Sharing
        of Setoffs

       

      Each
        of
        the Banks agrees that if it shall, through the exercise of a right of banker’s
        lien, setoff or counterclaim against Borrower or any other Company, including,
        but not limited to, a secured claim under the Bankruptcy Code or other security
        interest arising with respect to or in lieu of such secured claim and received
        by such Bank under any applicable bankruptcy, insolvency or other similar
        Law,
        or otherwise obtain payment in respect of any obligation owing to such Bank
        as a
        result of which the unpaid portion of its Loans is proportionately less than
        the
        unpaid portion of the Loans of other Banks (based. upon the respective
        Commitment of the Banks), (i) it shall promptly purchase at par (and shall
        be
        deemed to have thereupon purchased) from such other Banks a participation
        in the
        Loans of such other Banks, so that the aggregate unpaid principal amount
        of each
        of the Banks’ Loans shall be in the same proportion to the aggregate unpaid
        principal amount of all Loans then outstanding as the principal of its Loans
        prior to the obtaining of such payment was to the principal amount of all
        Loans
        outstanding prior to the obtaining of such payment, (ii) it shall pay interest
        calculated at the Federal Funds Rate to such other Banks on the amount purchased
        from the date it received such payment until the date of the purchase of
        such
        participation; and (iii) such other adjustments shall be made from time to
        time
        as shall be equitable to ensure that the Banks share such payment pro rata.
        Notwithstanding anything to the contrary contained herein, if a Bank shall
        obtain payment under any circumstances contemplated herein while any Obligations
        shall remain outstanding, such Bank shall promptly turn over such payment
        to
        Administrative Agent for distribution to the Banks on account of the Obligations
        as provided herein. Borrower and the Companies expressly consent to the
        foregoing arrangements and agree that any Bank or Banks holding (or deemed
        to be
        holding) a participation in any of the Loans or other Obligations may exercise
        any and all rights of banker’s lien, setoff or counterclaim with respect to any
        and all monies owing by Borrower or any other Company to such Bank.

       

      Section
        8.5  Liability
        of Agents.

       

      (a)  Each
        Agent, when acting on behalf of the Banks, may execute any of its duties
        under
        this Agreement by or through its officers, directors, employees, attorneys
        or
        agents. All such officers, directors, employees, attorneys and agents, when
        exercising the rights or performing the duties of such Agent, shall be deemed
        to
        be included in the term “Agent.”

       

      Neither
        Administrative Agent nor Collateral Agent nor their respective officers,
        directors, employees, attorneys or agents shall be liable to the Banks or
        any of
        them for any action taken or omitted to be taken in good faith, or be
        responsible to the Banks or to any of them for the consequences of any oversight
        or error of judgment, or for any loss, unless the same shall happen through
        its
        gross negligence or willful misconduct. Each Agent and its officers, directors,
        employees, attorneys and agents shall in no event be liable to any Bank for
        any
        action taken or omitted to be taken by it pursuant to instructions received
        by
        it from such Bank or from the Required Banks or in reliance upon the advice
        of
        counsel selected by it. Without limiting the foregoing, neither Administrative
        Agent nor Collateral Agent nor any of their respective officers, directors,
        employees, attorneys or agents shall be responsible to any of the Banks for
        the
        due execution, validity, genuineness, effectiveness, sufficiency or
        enforceability of, or for any statement, warranty or representation in, or
        for
        the perfection of any Lien contemplated by, this Agreement or any other Loan
        Paper, or shall be required to ascertain or to make any inquiry concerning
        the
        performance or observance by Borrower or any Company of any of the terms,
        conditions, covenants or agreements of this Agreement or any other Loan
        Paper.

       

      (b)  Neither
        Administrative Agent nor Collateral Agent nor any of their respective officers,
        directors, employees, attorneys or agents shall have any responsibility to
        Borrower or any other Company on account of the failure or delay in performance
        or breach by any of the Banks, Borrower or any other Company of any of their
        respective obligations under this Agreement or any other Loan
        Paper.

       

      (c)  Each
        Agent, as an agent hereunder, shall be entitled to rely on any communication,
        instrument or document reasonably believed by it to be genuine or correct
        and to
        have been signed or sent by a person or persons believed by it to the proper
        person or persons, and it shall be entitled to rely on advice of legal counsel,
        independent public accountants and other professional advisers and experts
        selected by it.

       

      Section
        8.6  Reimbursement
        and Indemnification

       

      EACH
        OF
        THE BANKS AGREES TO REIMBURSE ADMINISTRATIVE AGENT AND COLLATERAL AGENT,
        IN
        ACCORDANCE WITH SUCH BANK’S PRO RATA SHARE, FOR (A) EXPENSES, (B) INTERNAL
        CHARGES APPROVED BY THE REQUIRED BANKS OR (C) FEES INCURRED FOR THE BENEFIT
        OF
        THE BANKS UNDER THE LOAN PAPERS, INCLUDING COUNSEL FEES AND COMPENSATION
        OF
        REPRESENTATIVES AND EMPLOYEES PAID FOR SERVICES RENDERED ON BEHALF OF THE
        BANKS,
        AND ANY OTHER EXPENSE INCURRED IN CONNECTION WITH THE PREPARATION, EXECUTION,
        ADMINISTRATION, MONITORING OR ENFORCEMENT THEREOF, (II) TO INDEMNIFY AND
        HOLD
        HARMLESS ADMINISTRATIVE AGENT AND COLLATERAL AGENT AND ANY OF THEIR RESPECTIVE
        OFFICERS, DIRECTORS, EMPLOYEES, ATTORNEYS OR ADMINISTRATIVE AGENTS, ON DEMAND,
        FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES,
        PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS OF
        ANY
        KIND OR NATURE WHATSOEVER WHICH MAY BE IMPOSED ON, INCURRED BY, OR ASSERTED
        AGAINST ANY OF THEM IN ANY WAY RELATING TO OR ARISING OUT OF THIS AGREEMENT
        OR
        ANY OTHER LOAN PAPER OR ANY ACTION TAKEN OR OMITTED BY IT OR ANY OF THEM
        UNDER
        THIS AGREEMENT OR ANY OTHER LOAN PAPER (EXCEPT SUCH AS SHALL RESULT FROM
        SUCH
        INDEMNITEE’S OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT) TO THE EXTENT NOT
        REIMBURSED BY BORROWER OR THE OTHER COMPANIES AND (III) THAT ADMINISTRATIVE
        AGENT AND COLLATERAL AGENT MAY OFFSET DISTRIBUTIONS OF PRINCIPAL, INTEREST
        AND
        FEES DUE TO A BANK BY THE AMOUNT OF UNREIMBURSED AMOUNTS DUE AND OWING IN
        ACCORDANCE WITH THE PROVISIONS OF THIS SECTION
        8.6
        IF SUCH
        BANK HAS NOT REIMBURSED OR INDEMNIFIED ADMINISTRATIVE AGENT AND/OR COLLATERAL
        AGENT UPON A WRITTEN REQUEST BY SAID AGENT FOR SUCH REIMBURSEMENT OR
        INDEMNIFICATION.

       

      Section
        8.7  Rights
        of Administrative Agent and Collateral Agent

       

      It
        is
        understood and agreed that Administrative Agent and Collateral Agent shall
        each
        have the same rights, powers and obligations hereunder (including the right
        to
        give such instructions) as the other Banks and may exercise such rights and
        powers, as well as its rights and powers under other agreements and instruments
        to which it is or may be party, and engage in other transactions with Borrower
        or any other Company, as though it were not the Administrative Agent or the
        Collateral Agent under this Agreement.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        8.8  Independent
        Investigation and Credit Decision by Banks

       

      Each
        Bank
        acknowledges and agrees that it has decided to enter into this Agreement
        and to
        make extensions of credit hereunder based on its own analysis of (i) the
        transactions contemplated hereby, (ii) the creditworthiness of Borrower and
        the
        other Companies, (iii) this Agreement and the other Loan Papers and (iv)
        the
        business, legal and other issues relating thereto, and further acknowledges
        and
        agrees that Administrative Agent and Collateral Agent shall bear no
        responsibility therefor. Each Bank acknowledges and agrees that it will,
        independently and without reliance upon Administrative Agent or Collateral
        Agent
        or any other Bank, continue to make its own credit decisions and other decisions
        regarding the taking or not taking of any action under this Agreement or
        the
        other Loan Papers.

       

      Section
        8.9  Successor
        Agents

       

      Subject
        to the appointment and acceptance of a successor Agent as provided in this
        Section, any Agent may resign at any time by giving notice thereof to the
        Banks
        and Borrower. Upon any such resignation, the Required Banks shall have the
        right
        to appoint a successor Agent from among the Banks. If no successor Agent
        shall
        have been so appointed by the Required Banks and shall have accepted such
        appointment within sixty (60) days after the retiring Agent’s giving of notice
        of resignation, the retiring Agent may, on behalf of the Banks but with the
        consent of the Required Banks, which consent shall not be unreasonably withheld,
        appoint a successor Agent, which shall be either a Bank, or a commercial
        bank
        reasonably acceptable to Borrower (provided that Borrower’s approval shall not
        be required if any Default or Potential Default exists) organized under the
        Laws
        of the United States of America or of any State thereof. If no such successor
        Agent is appointed due to a proposed successor Agent’s reasonable
        unacceptability to Borrower or due to the failure of the Required Banks to
        consent to such proposed successor Agent, then said Agent may appoint a
        successor Agent from among the Banks after consulting with Borrower and the
        Banks. Upon the acceptance of any appointment as an Agent hereunder by a
        successor Agent, such successor Agent shall thereupon succeed to and become
        vested with all the rights, powers, privileges and duties of the retiring
        Agent,
        and the retiring Agent shall be discharged from its duties and obligations
        under
        this Agreement. After any retiring Agent’s resignation hereunder as Agent, the
        applicable provisions of this Article
        VIII
        and
Section
        5.1(l)
        shall
        inure to its benefit as to any actions taken or omitted to be taken by it
        while
        it was an Agent under this Agreement.

       

      Section
        8.10  Syndication
        Agent

       

      The
        Syndication Agent shall have no duties or responsibilities under this Agreement
        or the other Loan Papers or otherwise except in its role as a Bank; provided,
        however,
        that in
        the event that the Syndication Agent is also the Collateral Agent and/or
        the
        Administrative Agent, the provisions of this Section
        8.10
        shall
        not affect or limit in any way said Bank’s duties and responsibilities as
        Collateral Agent and/or Administrative Agent hereunder.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      ARTICLE
        IX

      MISCELLANEOUS

       

      Section
        9.1  Performance
        by Agents and the Banks

       

      Should
        any covenant, duty or agreement of Borrower or any other Company fail to
        be
        performed in accordance with the terms of the Loan Papers, Administrative
        Agent,
        Collateral Agent or any Bank may, at its option, perform, or attempt to perform,
        such covenant, duty or agreement on behalf of any of the Companies. In such
        event, Borrower shall, at the request of Administrative Agent, promptly pay
        any
        amount expended by Administrative Agent, Collateral Agent or any such Bank
        in
        such performance or attempted performance to Administrative Agent, at
        Administrative Agent’s principal office, together with interest thereon at the
        Highest Lawful Rate from the date of such expenditure by Administrative Agent,
        Collateral Agent or any such Bank until paid; provided that neither
        Administrative Agent nor Collateral Agent nor any Bank assumes or shall ever,
        except by its express written consent, have any liability for the performance
        of
        any duties or obligations of Borrower or any of the Companies hereunder,
        or
        under or in connection with all or any part of the Collateral. Also in such
        event, Administrative Agent shall use its reasonable efforts to promptly
        notify
        Borrower of Borrower’s or any other Company’s failure to so perform, but
        Administrative Agent’s failure to do so shall not result in any liability to it
        hereunder or affect the rights of Administrative Agent, Collateral Agent
        or any
        Bank under this Section
        9.1.

       

      Section
        9.2  Waivers

       

      The
        acceptance by Administrative Agent or any Bank at any time and from time
        to time
        of part payment on the Obligations shall not be deemed to be a waiver of
        any
        Default then existing. No waiver by Administrative Agent or any Bank of any
        Default shall be deemed to be a waiver of any other then .existing or subsequent
        Default. No delay or omission by Administrative Agent or any Bank in exercising
        any Right under the Loan Papers shall impair such Right, or be construed
        as a
        waiver thereof or any acquiescence therein, nor shall any single or partial
        exercise thereof, or the exercise of any other Right, preclude other or further
        exercise thereof, or the exercise of any other Right under the Loan Papers
        or
        otherwise.

       

      Section
        9.3  Cumulative
        Rights

       

      All
        rights hereunder shall be cumulative and in addition to all other rights
        granted
        to Administrative Agent or any Bank at Law, or in equity, or otherwise, and
        may
        be exercised from time to time, and as often as may be deemed expedient by
        Administrative Agent or any Bank, whether or not the Obligations are due
        and
        payable and whether or not Administrative Agent or any Bank has taken other
        action in connection with the Loan Papers.

       

      Section
        9.4  Other
        Rights and Remedies

       

      Administrative
        Agent and any Bank may, as between or among it and Borrower or any other
        Company, at any time and from time to time, at its discretion and with or
        without valuable consideration, allow substitution or withdrawal of Collateral
        without impairing or diminishing the obligations of Borrower and the other
        Companies under the Loan Papers. The exercise by Administrative Agent or
        any
        Bank of any right or remedy conferred on it by any collateral agreement,
        mortgage, deed of trust, chattel mortgage, assignment or other security
        instrument shall be wholly discretionary with it, and the exercise or failure
        to
        exercise any such right or remedy shall in no way impair or diminish the
        obligation of Borrower and the other Companies under the Loan Papers.. Neither
        Administrative Agent nor any Bank shall be liable for failure to use diligence
        in the collection of the Obligations or in preserving the liability of any
        Person liable on the Obligations, and Borrower and each other Company hereby
        waive notice of nonpayment and diligence in bringing suits against any Person
        liable on the Obligations, or any part thereof. Borrower and each other Company
        agree that Administrative Agent or any Bank, in its discretion as between
        or
        among it and Borrower or any other Company, may: (i) bring suit against Borrower
        and the other Companies jointly and severally or against any one or more
        of
        them; (ii) compound or settle with any one or more of Borrower and the other
        Companies for such consideration as it may deem proper; and (iii) release
        one or
        more of Borrower and the other Companies from liability under all or any
        part of
        the Obligations, and that no such action shall impair the rights of
        Administrative Agent or any Bank to collect the Obligations (or any part
        thereof) from Borrower or any other Company not so sued, compounded or settled
        with, or released.

       

      Section
        9.5  Expenditures
        of Administrative Agent and Banks

       

      Any
        sums
        spent by Administrative Agent or any Bank pursuant to the exercise of any
        right
        provided herein shall become part of the Obligations and shall bear interest
        at
        the Highest Lawful Rate from the date spent until the date repaid by
        Borrower.

       

      Section
        9.6  Form
        and Number of Documents

       

      Each
        opinion, certificate, resolution, deed of trust, mortgage, chattel mortgage,
        security agreement, assignment, lease, agreement, document, instrument or
        other
        writing or evidence to be furnished Administrative Agent or any Bank under
        any
        provision of this Agreement must be in form and substance and in such number
        of
        counterparts as may be satisfactory to Administrative Agent and its counsel
        and
        the Banks.

       

      Section
        9.7  Accounting
        Terms

       

      All
        accounting. and financial terms used herein, and the compliance with each
        covenant contained herein which relates to accounting or financial matters,
        shall be determined in accordance with GAAP, except to the extent that a
        deviation therefrom is expressly stated herein.

       

      Section
        9.8  Money

       

      Unless
        stipulated otherwise, all references herein to “Dollars,” “$,” “money,”
“payments,” or other similar financial or monetary terms, are references to
        currency of the United States of America.

       

      Section
        9.9  Headings

       

      The
        table
        of contents, headings, captions and arrangements used in any of the Loan
        Papers
        are, unless specified otherwise, for convenience only and shall not be deemed
        to
        limit, amplify or modify the terms of the Loan Papers, nor affect the meaning
        thereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        9.10  Articles,
        Sections, Exhibits and Schedules

       

      All
        references to “Article,” “Articles,” “Section,” “Sections,” “Subsection” or
“Subsections” contained herein are, unless specifically indicated otherwise,
        references to articles, sections and subsections of this Agreement. All
        references to “Exhibits” and “Schedules” contained herein are references to
        exhibits or schedules, as the case may be, attached hereto, all of which
        are
        made a part hereof for all purposes, the same as if set forth herein verbatim,
        it being understood that if any exhibit or schedule attached hereto, which
        is to
        be executed and delivered, contains blanks, the same shall be completed
        correctly and in accordance with the terms and provisions contained and as
        contemplated herein prior to or at the time of the execution and delivery
        thereof.

       

      Section
        9.11  Number
        and Gender of Words

       

      Whenever
        herein the singular number is used, the same shall include the plural where
        appropriate, and words of any gender shall include each other gender where
        appropriate.

       

      Section
        9.12  Business
        Day

       

      Except
        as
        may otherwise be expressly provided herein to the contrary, where a payment
        of
        principal or interest on the Obligations is due on a day other than a Business
        Day, Borrower shall be entitled to delay such payment until the next succeeding
        Business Day, but interest shall continue to accrue until the payment is,
        in
        fact, made.

       

      Section
        9.13  Notices

       

      All
        notices, requests and other communications to any party hereunder and under
        the
        other Loan Papers (except as may be expressly stated to the contrary therein)
        shall be in writing and shall be given to such party at its address set forth
        on
        the signature pages hereof or such other address as such party may hereafter
        specify for the purpose of notice to the other party. Each such notice, request
        or other communication shall be effective (i) if given by mail, forty-eight
        (48)
        hours after such communication is deposited in the mail with first class
        postage
        prepaid, addressed as aforesaid or (ii) if given by any other means, when
        delivered at the address specified in this Section; provided that any
        communications to any Agent or any Bank shall not be deemed effective until
        actually received by it.

       

      Section
        9.14  Parties
        Bound

       

      This
        Agreement shall be binding upon, and inure to the benefit of, Administrative
        Agent, the Banks, Borrower and the other Companies and their respective
        successors and assigns; provided that Borrower and the other Companies may
        not
        assign their rights or obligations under this Agreement without the prior
        written consent of Administrative Agent and the Banks. Each corporation,
        firm or
        other entity in which Borrower or any other Company hereafter acquires or
        otherwise owns a direct or indirect controlling interest (a “New
        Entity”)
        shall
        automatically (unless otherwise agreed or determined unilaterally by
        Administrative Agent and the Banks in writing) be and become a “subsidiary,” as
        that term is used in this Agreement, for all purposes, contemporaneously
        with
        such acquisition. Borrower shall promptly, and in any event within ten (10)
        days, after such acquisition, cause each New Entity to execute and deliver
        to
        Administrative Agent a Guaranty Agreement and an agreement in the form of
        Exhibit
        E
        (Agreement of New Entity) attached hereto. Borrower may thereafter request
        the
        Administrative Agent to release such New Entity from this Agreement, but
        each
        such release shall be wholly discretionary with Administrative Agent and
        the
        Banks. If Administrative Agent does, however, grant any such release or does
        not
        require such New Entity to execute and deliver the aforesaid documents, such
        New
        Entity shall thereafter, for the purposes of this Agreement, be treated as
        though it were not a Subsidiary hereunder and not affiliated in any manner
        whatsoever with Borrower or any other Company (except as may relate to such
        New
        Entity’s status as an “Affiliate” hereunder), except to the extent specifically
        stated in such release or other agreement of Administrative Agent.

       

      Section
        9.15  Exceptions
        to Covenants

       

      The
        Companies shall not be deemed to be permitted to take any action or fail
        to take
        any action which is permitted or not prohibited by any of the covenants
        contained herein if such action or omission would result in the breach of
        any
        other covenant contained herein or in the other Loan Papers.

       

      Section
        9.16  Successors
        and Assigns.

       

      (a)  This
        Agreement shall be binding upon and inure to the benefit of the parties hereto
        and their respective successors and assigns. Neither Borrower nor any Company
        may assign or transfer any of its rights or obligations hereunder without
        the
        prior written consent of the Administrative Agent and all of the Banks. Any
        Bank
        may sell participations to one or more banks or other institutions in or
        to all
        or a portion of its rights and obligations under the Loan Papers (including,
        without limitation, all or a portion of its Commitment, the Loans owing to
        it
        and its interest in the Letters of Credit which it has made or in which it
        has a
        participating interest); provided, however, that (i) such Bank’s obligations
        under the Loan Papers (including, without limitation, its Commitment) shall
        remain unchanged, (ii) such Bank shall remain solely responsible to Borrower
        for
        the performance of such obligations, (iii) such Bank shall remain the holder
        of
        its Notes and owner of its participation or other interests in Letter of
        Credit
        Liabilities for all purposes of any Loan Paper, (iv) Borrower shall continue
        to
        deal solely and directly with such Bank in connection. with such Bank’s rights
        and obligations under the Loan Papers, (v) prior or concurrent written consent
        of Administrative Agent and Collateral Agent shall be required for any such
        participation, and (vi) such Bank shall not sell a participation that conveys
        to
        the participant the right to vote or give or withhold consents under any
        Loan
        Papers, other than the right to vote upon or consent to (1) any increase
        of such
        Bank’s Commitment, (2) any reduction of the principal amount of, or interest to
        be paid on, the Loans or other Obligations of such Bank, (3) any reduction
        of
        any commitment fee, letter of credit fee, or other amount payable to such
        Bank
        under any Loan Paper, or (4) any postponement of any date for the payment
        of any
        amount payable in respect of the Loans or other Obligations of such
        Bank.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)  Any
        Bank
        (the “Assigning
        Bank”)
        may at
        any time assign to one or more commercial banks, savings and loan association,
        savings bank, finance company, insurance company, pension fund, mutual fund,
        or
        other financial institution (whether a corporation, partnership, or other
        entity) (herein an “Eligible
        Assignee”)
        all,
        or a proportionate part of all, of its rights and obligations under the Loan
        Papers (including, without limitation, its obligations under Section
        2.1
        and its
        Loans and participation interests) (each an “Assignee”);
        provided, however, that (i) each such assignment shall be of a consistent,
        and
        not a varying, percentage of all of the Assigning Bank’s rights and obligations
        under the Loan Papers, (ii) except in the case of an assignment of all of
        a
        Bank’s rights and obligations under the Loan Papers, the amount of the
        Commitment of the assigning Bank being assigned pursuant to each assignment
        (determined as of the date of the Assignment and Acceptance with respect
        to such
        assignment) shall in no event be less than Five Million Dollars ($5,000,000),
        (iii) the parties to each such assignment shall execute and deliver to the
        Administrative Agent for its acceptance and recording in the Register (as
        defined below), an Assignment and Acceptance, together with the Notes subject
        to
        such assignment, and a processing and recordation fee of up to $5,000 payable
        by
        the assignor or assignee (and not any Company); (iv) prior or concurrent
        written
        consent of Administrative Agent and Collateral Agent shall be required for
        any
        such assignment; and (v) prior or concurrent written consent of Parent shall
        be
        required for any such assignment, which consent of Parent shall not be
        unreasonably withheld, with such consents to be evidenced by the Parent’s and,
        the Administrative Agent’s and the Collateral Agent’s execution of the
        Assignment and Acceptance, provided
        that any
        consent of the Parent otherwise required by this Subsection shall not be
        required if a Default or Potential Default has occurred and is continuing.
        Upon
        such execution, delivery, acceptance, and recording, from and after the
        effective date specified in each Assignment and Acceptance, which effective
        date
        shall be at least five (5) Business Days after the execution thereof, or,
        if so
        specified in such Assignment and Acceptance, the date of acceptance thereof
        by
        Administrative Agent, (x) the Assignee thereunder shall be a party hereto
        as a
“Bank” and, to the extent that rights and obligations hereunder have been
        assigned to it pursuant to such Assignment and Acceptance, have the rights
        and
        obligations of a Bank hereunder and under the Loan Papers and (y) the Assigning
        Bank shall, to the extent that rights and obligations hereunder have been
        assigned by it pursuant to such Assignment and Acceptance, relinquish its
        rights
        and be released from its obligations under the Loan Papers (and, in the case
        of
        an Assignment and Acceptance covering all or the remaining portion of a Bank’s
        rights and obligations under the Loan Papers, such Bank shall cease to be
        a
        party thereto).

       

      (c)  Administrative
        Agent shall maintain a copy of each Assignment and Acceptance delivered to
        and
        accepted by it and a register for the recordation of the names and addresses
        of
        the Banks and the Commitments of, and principal amount of the Loans owing
        to and
        Letters of Credit participated in by, each Bank from time to time (the
“Register”).
        The
        entries in the Register shall be conclusive and binding for all purposes,
        absent
        manifest error, and Borrower, Administrative Agent, and the Banks may treat
        each
        Person whose name is recorded in the Register as a Bank hereunder for all
        purposes under the Loan Papers. The Register shall be available for inspection
        by Parent or any Bank at any reasonable time and from time to time upon
        reasonable prior notice.

       

      (d)  Upon
        its
        receipt of an Assignment and Acceptance executed by an Assigning Bank and
        Assignee representing that it is an Eligible Assignee, together with any
        Notes
        subject to such assignment, Administrative Agent shall, if such Assignment
        and
        Acceptance has been completed and is in substantially the form of Exhibit
        F
        hereto,
        (i) accept such Assignment and Acceptance, (ii) record the information contained
        therein in the Register, and (iii) give prompt written notice thereof to
        Parent.
        Within five (5) Business Days after its receipt of such notice Borrower,
        at
        their expense, shall execute and deliver to Administrative Agent in exchange
        for
        the surrendered Notes (including (if applicable) new Revolving Credit Notes
        to
        the order of such Eligible Assignee in an amount equal to the Commitment
        assumed
        by it pursuant to such Assignment and Acceptance and, if the Assigning Bank
        has
        retained a Commitment, a Revolving Credit Note to the order of the Assigning
        Bank in an amount equal to the Commitment retained by it hereunder (each
        such
        promissory note shall constitute a “Revolving
        Credit Note”
for
        purposes of the Loan Papers). Such new Revolving Credit Notes shall be in
        an
        aggregate principal amount of the surrendered Revolving Credit Note, shall
        be
        dated the effective date of such Assignment and Acceptance, and shall otherwise
        be in substantially the form of Exhibit
        C
        hereto.

       

      (e)  Any
        Bank
        may, in connection with any assignment or participation or proposed assignment
        or participation pursuant to this Section, disclose to the assignee or
        participant or proposed assignee or participant, any information relating
        to
        Borrower and the Companies furnished to such Bank by or on behalf of such
        Company.

       

      (f)  Any
        Bank
        may at any time pledge or assign a security interest in all or any portion
        of
        its rights under this Agreement to secure obligations of such Bank, including
        any pledge or assignment to secure obligations to a Federal Reserve Bank,
        and
        this Section shall not apply to any such pledge or assignment of a security
        interest; provided
        that no
        such pledge or assignment of a security interest shall release a Bank from
        any
        of its obligations hereunder or substitute any such pledgee or assignee for
        such
        Bank as a party hereto.

       

      Section
        9.17  Effect
        of Investigations

       

      All
        covenants, agreements, undertakings, representations and warranties. made
        in any
        of the Loan Papers shall survive all closings under the Loan Papers and,
        except
        as otherwise indicated, shall not be affected by any investigation made by
        any
        party.

       

      Section
        9.18  GOVERNING
        LAW; VENUE; SERVICE OF PROCESS.

       

      (a)  THE
        LOAN
        PAPERS ARE BEING EXECUTED AND DELIVERED, AND ARE INTENDED TO BE PERFORMED,
        IN
        THE STATE OF TEXAS, AND THE LAWS OF SUCH STATE SHALL GOVERN THE VALIDITY,
        CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF THE LOAN PAPERS, EXCEPT TO
        THE
        EXTENT OTHERWISE SPECIFIED IN ANY OF THE LOAN PAPERS.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      (b)  CHAPTER
        346 OF THE TEXAS FINANCE CODE SHALL NOT APPLY TO THE REVOLVING CREDIT
        LOANS.

       

      (c)  ANY
        ACTION OR PROCEEDING AGAINST ANY COMPANY UNDER OR IN CONNECTION WITH ANY
        OF THE
        LOAN PAPERS MAY BE BROUGHT IN ANY STATE OR FEDERAL COURT IN DALLAS COUNTY,
        TEXAS. EACH COMPANY HEREBY IRREVOCABLY (I) SUBMITS TO THE NONEXCLUSIVE
        JURISDICTION OF SUCH COURTS, AND (II) WAIVES ANY OBJECTION IT MAY NOW OR
        HEREAFTER HAVE AS TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING BROUGHT IN
        ANY
        SUCH COURT OR THAT ANY SUCH COURT IS AN INCONVENIENT FORUM. EACH COMPANY
        AGREES
        THAT SERVICE OF PROCESS UPON IT MAY BE MADE BY CERTIFIED OR REGISTERED MAIL,
        RETURN RECEIPT REQUESTED, AT ITS ADDRESS SPECIFIED OR DETERMINED IN ACCORDANCE
        WITH THE PROVISIONS OF SECTION
        9.13.
        NOTHING
        HEREIN OR IN ANY OF THE OTHER LOAN PAPERS SHALL AFFECT THE RIGHT OF THE
        ADMINISTRATIVE AGENT, THE COLLATERAL AGENT, THE ISSUING BANK OR ANY BANK
        TO
        SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR SHALL . LIMIT THE RIGHT
        OF
        THE ADMINISTRATIVE AGENT, THE COLLATERAL BANK, THE ISSUING BANK OR ANY BANK
        TO
        BRING ANY ACTION OR PROCEEDING AGAINST THE BORROWER OR WITH RESPECT TO ANY
        OF
        ITS RESPECTIVE PROPERTY IN COURTS IN OTHER JURISDICTIONS. ANY ACTION OR
        PROCEEDING BY ANY COMPANY AGAINST THE ADMINISTRATIVE AGENT, THE COLLATERAL
        AGENT, THE ISSUING BANK, OR ANY BANK SHALL BE BROUGHT ONLY IN A COURT LOCATED
        IN
        DALLAS COUNTY, TEXAS.

       

      Section
        9.19  Maximum
        Interest Rate.

       

      (a)  No
        interest rate specified in this Agreement or any other Loan Paper shall at
        any
        time exceed the Highest Lawful Rate. If at any time the interest rate (the
        “Contract
        Rate”)
        for
        any Obligation shall exceed the Highest Lawful Rate, thereby causing the
        interest accruing on such Obligation to be limited to the Highest Lawful
        Rate,
        then any subsequent reduction in the Contract Rate for such Obligation shall
        not
        reduce the rate of interest on such Obligation below the Highest Lawful Rate
        until the aggregate amount of interest accrued on such Obligation equals
        the
        aggregate amount of interest which would have accrued on such Obligation
        if the
        Contract Rate for such Obligation had at all times been in effect.

       

      (b)  Notwithstanding
        anything to the contrary contained in this Agreement or the other Loan Papers,
        none of the terms and provisions of this Agreement or the other Loan Papers
        shall ever .be construed to create a contract or obligation to pay interest
        at a
        rate in excess of the Highest Lawful Rate; and neither any Agent nor any
        Bank
        shall ever charge, receive, take, collect, reserve or apply, as interest
        on the
        Obligations, any amount in excess of the Highest Lawful Rate. The parties
        hereto
        agree that any interest, charge, fee, expense or other obligation provided
        for
        in this Agreement or in the other Loan Papers which constitutes interest
        under
        applicable Law shall be, ipso facto
        and
        under any and all circumstances, limited or reduced to an amount equal to
        the
        lesser of (i) the amount of such interest, charge, fee, expense or other
        obligation that would be payable in the absence of this Section
        9.19(b)
        or (ii)
        an amount, which when added to all other interest payable under this Agreement
        and the other Loan Papers, equals the Highest Lawful Rate. If, notwithstanding
        the foregoing, any Agent or any Bank ever contracts for, charges, receives,
        takes, collects, reserves or applies as interest any amount in excess of
        the
        Highest Lawful Rate, such amount which would be deemed excessive interest
        shall
        be deemed a partial payment or prepayment of principal of the Obligations
        and
        treated hereunder as such; and if the Obligations, or applicable portions
        thereof, are paid in full, any remaining excess shall promptly be paid to
        the
        Borrower, Parent or Subsidiary (as appropriate). In determining whether the
        interest paid or payable, under any specific contingency, exceeds the Highest
        Lawful Rate, the parties hereto shall, to the maximum extent permitted by
        applicable Law, (i) characterize any nonprincipal payment as an expense,
        fee or
        premium rather than as interest, (ii) exclude voluntary prepayments and the
        effects thereof, and (iii) amortize, prorate, allocate and spread in equal
        or
        unequal parts the total amount of interest throughout the entire contemplated
        term of the Obligations, or applicable portions thereof, so that the interest
        rate does not exceed the Highest Lawful Rate at any time during the term
        of the
        Obligations; provided that,
        if the
        unpaid principal balance is paid and performed in full prior to the end of
        the
        full contemplated term thereof, and if the interest received for the actual
        period of existence thereof exc eeds the Highest Lawful Rate, the Agents
        and/or
        the Banks, as appropriate, shall refund to the applicable Person the amount
        of
        such excess and, in such event, the Agents and the Banks shall not be subject
        to
        any penalties provided by any Laws for contracting for, charging, receiving,
        taking, collecting, reserving or applying interest in excess of the Highest
        Lawful Rate.

       

      Section
        9.20  Invalid
        Provisions

       

      If
        any
        provision of any of the Loan Papers is held to be illegal, invalid or
        unenforceable under present or future Laws effective during the term thereof,
        such provision shall be fully severable; the appropriate Loan Papers shall
        be
        construed and enforced as if such illegal, invalid or unenforceable provision
        had never comprised a part thereof; and the remaining provisions thereof
        shall
        remain in full force and effect and shall not be affected by the illegal,
        invalid or unenforceable provision or by its severance therefrom. Furthermore,
        in lieu of such illegal, invalid or unenforceable provision, there shall
        be
        added automatically as a part of such Loan Papers a provision as similar
        in
        terms to such illegal, invalid or unenforceable provision as may be possible
        and
        be legal, valid and enforceable.

       

      Section
        9.21  Entirety
        and Amendments

       

      This
        Agreement embodies the entire agreement between or among the parties relating
        to
        the subject matter hereof, supersedes all prior term sheets, discussions,
        agreements and understandings, if any, relating to the subject matter hereof,
        and, except as provided below, neither this Agreement nor any provision hereof
        or of any of the Loan Papers may be waived, amended or modified except by
        an
        agreement in writing executed jointly by any authorized officer of each Company
        party thereto and Required Banks, and the same may be supplemented only by
        documents delivered or to be delivered in accordance with the express terms
        hereof, provided however, that, without the prior written consent of each
        of the
        Banks, no such agreement shall (i) reduce the principal amount of, or extend
        the
        maturity of or any date for the payment of any principal of or interest on
        any
        Loan or Letter of Credit, or waive or excuse any such payment or any part
        thereof, or reduce the rate of interest on any Loan or Letter of Credit (other
        than any such reduction in the rate of interest resulting from a change in
        the
        Base Rate in accordance with the definition of such term), (iii) reduce or
        increase the Commitment of any Bank, (iv) change or amend the provisions
        of this
        Section, or the definition of the “Required
        Banks”,
        (v)
        waive any condition precedent to the making of any Loan or the issuance of
        any
        Letter of Credit, (vi) release any Guaranty Agreement or any Collateral securing
        any of the Obligations, except releases expressly provided for or permitted
        by
        this Agreement, or (vii) reduce any fee payable to any Bank; provided, further,
        that no such agreement shall amend, modify or otherwise affect the rights
        or
        duties of any Agent hereunder without the prior written consent of such Agent.
        Each Bank and each holder of a Note shall be bound by any waiver, amendment
        or
        modification authorized by this Section regardless of whether its Note shall
        have been marked to make reference thereto, and any consent by any Bank or
        holder of a Note pursuant to this Section shall bind any person subsequently
        acquiring a Note from it, whether or not such Note shall have been so
        marked.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        9.22  Survival

       

      All
        representations and warranties of Borrower and the other Companies contained
        in
        this Agreement shall survive the making of the Loans, Advances and Letters
        of
        Credit herein contemplated. The provisions of Sections
        2.19,
        2.22,
        2.26
        and
5.1(j)
        and
Article
        VIII
        shall
        survive and remain in full force and effect regardless of the consummation
        of
        the transactions contemplated hereby, the repayment of the Loans, the expiration
        or termination of the Letters of Credit and the Commitments or the termination
        of this Agreement or any provision hereof.

       

      Section
        9.23  Setoff

       

      In
        addition to, and without limitation of, any rights of the Agents and the
        Banks
        under applicable Law (including other rights of setoff), if Borrower or any
        other Company becomes insolvent or any Default occurs, the Agents and the
        Banks,
        or any of them, may apply any and all money or property held for or owed
        to any
        of the Companies (including without limitation any and all deposits, whether
        time or demand, provisional or final) against all or any portion of the
        Obligations owed to the Agents and the Banks, or any of them.

       

      Section
        9.24  Multiple
        Counterparts

       

      This
        Agreement may be executed in a number .of identical counterparts, each of
        which,
        for all purposes, is to be deemed an original and all of which constitute,
        collectively, one agreement; however, in making proof of this Agreement,
        it
        shall not be necessary to produce or account for more than one such
        counterpart.

       

      Section
        9.25  Term
        of Agreement

       

      This
        Agreement shall continue until the Notes and all other Obligations shall
        have
        each been paid and performed in full and until all other liabilities and
        obligations of Borrower and the other Companies under this Agreement and
        the
        other Loan Papers shall have been fully satisfied and the Banks shall have
        no
        further obligation to make Loans or issue Letters of Credit
        hereunder.

       

      Section
        9.26  Limitation
        of Liability

       

      No
        Agent,
        Bank, or any Affiliate, officer, director, employee, attorney, or agent thereof
        shall have any liability with respect to, and each Company (by its execution
        or
        ratification of a Guaranty Agreement or an Agreement of New Entity) hereby
        waives, releases, and agrees not to sue any of them upon, any claim for any
        special, indirect, incidental, or consequential damages suffered or incurred
        by
        any Company in connection with, arising out of, or in any way related to,
        this
        Agreement or any of the other Loan Papers, or any of the transactions
        contemplated by this Agreement or any of the other Loan Papers. Each Company
        (by
        its execution or ratification of a Guaranty Agreement or an Agreement of
        New
        Entity) hereby waives, releases, and agrees not to sue any Agent or any Bank
        or
        any of their respective Affiliates, officers, directors, employees, attorneys,
        or agents for punitive damages in respect of any claim in connection with,
        arising out of, or in any way related to, this Agreement or any of the other
        Loan Papers, or any of the transactions contemplated by this Agreement or
        any of
        the other Loan Papers.

       

      Section
        9.27  No
        Fiduciary Relationship

       

      The
        relationship between each Company and each Agent and Bank with respect to
        the
        Loan Papers. and the transactions contemplated hereby and thereby is solely
        that
        of debtor and creditor, and neither any Agent nor any Bank has any fiduciary
        or
        other special relationship with any Company with respect to the Loan Papers
        and
        such transactions, and no term or condition of any of the Loan Papers shall
        be
        construed so as to deem the relationship between any Company and any Bank
        with
        respect to the Loan Papers and such transactions to be other than that of
        debtor
        and creditor.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Section
        9.28  Construction

       

      Each
        Company, each Agent and each Bank acknowledge that each of them has had the
        benefit of legal counsel of its own choice and has been afforded an opportunity
        to review this Agreement and the other Loan Papers with its legal counsel
        and
        that this Agreement and the other Loan Papers shall be construed as if jointly
        drafted by the parties hereto.

       

      Section
        9.29  Waiver
        and Release

       

      Each
        Company hereby waives and releases all Agents and all Banks from any and
        all
        claims or causes of action which any Company may own, hold or claim in respect
        of any of them as of the date hereof.

       

      Section
        9.30  NO
        ORAL AGREEMENTS

       

      THIS
        AGREEMENT, TOGETHER WITH THE OTHER LOAN PAPERS AS WRITTEN, REPRESENT THE
        FINAL
        AGREEMENTS AMONG AGENTS, THE BANKS, BORROWER AND THE OTHER COMPANIES AND
        MAY NOT
        BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
        AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN
        OR
        AMONG AGENTS AND BORROWER OR ANY OTHER COMPANY, OR BETWEEN OR AMONG ANY BANK
        AND
        BORROWER OR ANY OTHER COMPANY.

       

      Section
        9.31  Joint
        and Several Obligations

       

      Notwithstanding
        anything to the contrary contained herein or in any other Loan Papers, the
        Companies are jointly and severally responsible for their respective agreements,
        covenants, representations, warranties and obligations contained and set
        forth
        in this Agreement or in any other Loan Paper to which they are a
        party.

       

      Section
        9.32  WAIVER
        OF JURY TRIAL

       

      EACH
        PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
        LAW,
        ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY
        OR
        INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
        CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
        EACH
        PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
        OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY
        WOULD
        NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
        (B)
        ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
        INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
        CERTIFICATIONS IN THIS SECTION.

       

      Section
        9.33  Restatement

       

      This
        Agreement amends and restates in its entirety the Existing Agreement, and
        from
        and after the date hereof, the terms and provisions of the Existing Agreement
        shall be superseded by the terms and provisions of this Agreement. Borrower
        hereby agrees that (i) the Existing Indebtedness, all accrued and unpaid
        interest thereon, and all accrued and unpaid fees under the Existing Agreement
        shall be deemed to be Indebtedness of Borrower outstanding under and governed
        by
        this Agreement, and (ii) all letters of credit issued under the Existing
        Agreement shall continue in full force and effect, and (iii) all Liens securing
        the Existing Indebtedness shall continue in full force and effect to secure
        the
        Obligations.

       

      

       

      [REMAINDER
        OF PAGE INTENTIONALLY BLANK]

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      

       

      EXECUTED
        as of the day and year first herein stated.

       

      COMERICA
        BANK,

       

      as
        a
        Bank, as Issuing Bank

       

      and
        as
        Administrative Agent

       

      

       

      By: 
        /s/ Donald P. Hellman

       

      Donald
        P.
        Hellman, Senior Vice President

       

      8828
        Stemmons Freeway, Suite 441

       

      Dallas,
        Texas 75247

       

      Fax:
        (214) 589-4419

       

      Attention:
        Donald P. Hellman

       

      Applicable
        Lending Office:

       

      8828
        Stemmons Freeway, Suite 441

       

      Dallas,
        Texas 75247

       

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      LASALLE
        BANK NATIONAL ASSOCIATION,

       

      as
        a
        Bank, as Collateral Agent and

       

      as
        Syndication Agent

       

      

       

      By: 
        /s/Nick Weaver      

       

      Name:
        Nick Weaver

       

      Title:
        Senior Vice President

       

      135
        S.
        LaSalle Street, Suite 361

       

      Chicago,
        Illinois 60603

       

      Fax:
        (312) 904-2903

       

      Attention:
        Rosario Del Valle

       

      Applicable
        Lending Office:

       

      135
        S.
        LaSalle Street, Suite 361

       

      Chicago,
        Illinois 60603

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FFE
        TRANSPORTATION SERVICES, INC.

       

      

       

      By:        
        /s/Thomas G. Yetter      

      Thomas
        G.
        Yetter

      Senior
        Vice President

      

      Address
        for Borrower and all other companies listed below: 

       

      1145
        Empire Central Place

       

      Dallas,
        Texas 75247

       

      Attention:
        President

       

      

       

      FROZEN
        FOOD EXPRESS INDUSTRIES, INC.

       

      

      By:         
        /s/Thomas G. Yetter            

      Thomas
        G.
        Yetter

      Senior
        Vice President

      

       

      FFE,
        INC.

       

      

      By:         
        /s/Leonard W. Bartholomew      

      Leonard
        W. Bartholomew

      Secretary

      

       

      

       

      CONWELL
        CORPORATION

       

      

      By:         
        /s/Leonard W. Bartholomew      

      Leonard
        W. Bartholomew

      Secretary

      

       

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      FX
        HOLDINGS, INC. (formerly names AIRPRO HOLDINGS, INC.)

       

      

      By:         
        /s/Leonard W. Bartholomew            

      Leonard
        W. Bartholomew

      Secretary

      

      

      LISA
        MOTOR LINES, INC.

       

      

      By:         
        /s/Leonard W. Bartholomew            

      Leonard
        W. Bartholomew

      Secretary

      

       

      

       

      FROZEN
        FOOD EXPRESS, INC.

       

      

      By:         
        /s/Leonard W. Bartholomew            

      Leonard
        W. Bartholomew

      Secretary

      

       

      

       

      CONWELL
        CARTAGE, INC.

       

      

      By:         
        /s/Leonard W. Bartholomew            

      Leonard
        W. Bartholomew

      Secretary

      

       

      

       

      MIDDLETON
        TRANSPORTATION COMPANY

       

      

      By:         
        /s/Leonard W. Bartholomew            

      Leonard
        W. Bartholomew

      Secretary

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

       

      COMPRESSORS
        PLUS, INC.

       

      

      By:         
        /s/Leonard W. Bartholomew            

      Leonard
        W. Bartholomew

      Secretary

      

       

      

       

      FFE
        LOGISTICS, INC.

       

      

      By:         
        /s/Leonard W. Bartholomew            

      Leonard
        W. Bartholomew

      Secretary

      

       

      

       

      CONWELL
        LLC

       

      By:         
        /s/Leonard W. Bartholomew           

      Leonard
        W. Bartholomew

      SecretaryExhibit 10.1 - Master Revolving Note

    Exhibit
      10.1

    TAX
      I.D.
      No. 38-2144267 

    

    

    MASTER
      REVOLVING NOTE

    

    

    

    
      	$15,000,000.00 	
              Detroit,
                Michigan

            
	 	
              October
                1, 2006

            

    

    
 

    On
      or
      before October 1, 2007 (herein called the “Maturity Date”), FOR VALUE RECEIVED,
      the undersigned, SEMCO ENERGY, INC., a Michigan corporation (herein called
      the
      "Borrower"), promises to pay to the order of COMERICA BANK, a Michigan banking
      corporation (herein called "Bank"), at the principal office of Bank at Comerica
      Tower at Detroit Center, 500 Woodward Avenue, Detroit, Michigan 48226, or at
      such other office as Bank notifies Borrower in writing from time to time, in
      lawful currency of the United States of America, the principal sum of FIFTEEN
      MILLION DOLLARS ($15,000,000.00), or so much of said sum as has been advanced
      and is then outstanding hereunder, together with interest thereon as hereinafter
      set forth.

    

    This
      Note
      is a note under which Advances, repayments and new Advances may be made from
      time to time, provided that Bank shall not be obligated to make any Advance
      hereunder (notwithstanding anything expressed or implied herein or elsewhere
      to
      the contrary), and the Bank, at any time and from time to time, without notice,
      and in its sole and absolute discretion, may refuse to make Advances to Borrower
      hereunder without incurring any liability whatsoever and without in any way
      affecting Borrower's liability hereunder for all amounts advanced. Advances
      hereunder may be requested in Borrower's discretion by telephonic notice to
      Bank
      or by submission to Bank of a Request for Advance in form annexed hereto as
      Exhibit "A". Any Advance requested by telephon-ic notice shall be confirmed
      by
      Borrower that same day by submission to Bank, either by first class mail or
      telefax, of the written Request for Advance aforementioned. Borrower
      acknowledges that if Bank makes an Advance based on a telephonic request, it
      shall be for Borrower's convenience and all risks involved in the use of such
      procedure shall be borne by Borrower, and Borrower expressly agrees to indemnify
      and hold Bank harmless therefor. Bank shall have no duty to confirm the
      authority of anyone requesting an Advance by telephone.

    

    Each
      Quoted Rate Advance hereunder shall be in a minimum principal amount of Five
      Hundred Thousand Dollars ($500,000.00).

     

    1

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Each
      Prime-based Advance outstanding under this Note shall bear interest at the
      Prime-based Rate, and each Quoted Rate Advance outstanding under this Note
      shall
      bear interest at the applicable Quoted Rate. Each Advance hereunder shall be
      payable upon the respective Repayment Date therefor (unless sooner accelerated
      in accordance with the terms of this Note), unless Bank, in its sole and
      absolute discretion, and subject to all other terms and conditions of this
      Note,
      agrees to allow the continuation of an outstanding Advance as the same type
      of
      Advance or the conversion of an outstanding Advance to another type of Advance,
      in which case, that portion of such Advance which is not so continued or
      converted, as the case may be, shall be repaid on such Repayment Date. Interest
      shall be computed on a daily basis using a year of 360 days and shall be
      assessed for the actual number of days elapsed, and in such computations, effect
      shall be given to any change in the interest rate as a result of any change
      in
      the Prime-based Rate on the date of each such change in the Prime-based Rate.
      Unless sooner accelerated in accordance with the terms of this Note, accrued
      and
      unpaid interest on each Prime-based Advance shall be payable monthly, in
      arrears, on the first Business Day of each month and on the Maturity Date,
      and,
      in the case of Quoted Rate Advances, on the respective Repayment Date
      therefor.

    

    The
      amount, applicable interest rate, and Repayment Date of each Advance shall
      be
      noted on Bank's books and records, which books and records will be conclusive
      evidence thereof; provided,
      however,
      any
      failure on the part of Bank to make any such notation shall not relieve Borrower
      of its obligations to repay Bank all amounts owing under this Note when due
      in
      accordance with the terms hereof.

    

    If
      Borrower makes any payment of principal with respect to any Quoted Rate Advance
      on any day other than the applicable Repayment Date therefor (whether
      voluntarily, by acceleration, or otherwise), or if Borrower fails to borrow
      a
      Quoted Rate Advance after notice has been given by Borrower to Bank in
      accordance with the terms of this Note requesting such Advance and Bank has
      agreed to make such Quoted Rate Advance, or if Borrower fails to make any
      payment of principal or interest in respect of any Quoted Rate Advance when
      due,
      Borrower shall reimburse Bank, on demand, for any resulting loss, cost or
      expense incurred by Bank as a result thereof, including, without limitation,
      any
      such loss, cost or expense incurred in obtaining, liquidating, employing or
      redeploying deposits from third parties, but excluding any portion of such
      loss
      attributable to the Bank’s margin, as determined by the Bank which determination
      shall be conclusive absent manifest error. Calculation of any amounts payable
      to
      Bank under this paragraph shall be made as though Bank shall have actually
      funded or committed to fund the relevant Quoted Rate Advance through the
      purchase of an underlying deposit in an amount equal to the amount of such
      Advance and having a maturity date comparable to the applicable repayment date
      of such Quoted Rate Advance; provided,
      however,
      Bank
      may fund any Quoted Rate Advance in any manner it deems fit and the foregoing
      assumption shall be utilized only for the purpose of the calculation of amounts
      payable under this paragraph. Prime-based Advances may be prepaid at any time
      without penalty or premium.

     

    2

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    If
      (a)
      Borrower fails to pay the principal amount of this Note, or any part thereof,
      when due, by maturity, acceleration or otherwise, or fails to pay any interest,
      fees or other amounts (other than principal) owing under this Note when due
      or
      upon demand, as applicable, and continuance thereof for more than three (3)
      Business Days; or (b) Borrower fails to comply with any of the terms or
      provisions of any agreement between Borrower and Bank (taking into account
      applicable periods of notice and cure, if any); or (c) Borrower becomes
      insolvent or the subject of a voluntary or involuntary proceeding in bankruptcy,
      or a reorganization, arrangement or creditor composition proceeding and, in
      the
      event of an involuntary proceeding only, such proceeding is not dismissed within
      sixty (60) days), ceases doing business as a going concern, or is the subject
      of
      a dissolution; or (d) any warranty or representation made by Borrower in
      connection with this Note shall be discovered to be materially untrue or
      incomplete when made or when deemed made; or (e) there is a default or event
      of
      default under (i) that certain Second Amendment and Restated Credit Agreement,
      dated September 15, 2005, among the Borrower, various financial institutions
      parties thereto as lenders, LaSalle Bank Midwest National Association, a
      national banking association, as administrative agent and arranger, National
      City Bank (fka National City Bank of the Midwest), a national banking
      association, as syndicated agent, and U.S. Bank, N.A., as documentation agent
      as
      may be amended, restated, supplemented or replaced from time to time; or (ii)
      that certain Indenture dated as of May 21, 2003, among Borrower and Fifth Third
      Bank, as trustee, relating to Borrower’s 7-1/8 % Senior Notes due 2008; or there
      is any failure by Borrower to pay when due any of its other indebtedness in
      excess of $10,000,000 in the aggregate or in the observance or performance
      of
      any term, covenant or condition in any document evidencing, securing or relating
      to such indebtedness; or (f) there is filed or issued a levy or writ of
      attachment or garnishment or other like judicial process upon Borrower,
      including, without limit, any accounts of Borrower with Bank, for an amount
      in
      excess of $1,000,000, then Bank, upon the occurrence or existence of any of
      these conditions or events (each a " Default"), may at its option and without
      prior notice to Borrower, declare any or all of the Indebtedness to be
      immediately due and payable (notwithstanding any provisions contained in the
      evidence of it to the contrary), set off against the indebtedness outstanding
      under this Note any amounts owing by Bank to Borrower, and exercise any one
      or
      more of the rights and remedies granted to Bank by any agreement with Borrower
      or given to it under applicable law, or otherwise. 

    

    Upon
      the
      occurrence and during the continuance of any Default hereunder, (a) interest
      on
      all outstanding Prime-based Advances shall be payable at a per annum rate of
      two
      percent (2%) above the Prime-based Rate, and (b) interest on any outstanding
      Quoted Rate Advances shall be payable until the respective Repayment Date for
      each such Advance at a per annum rate equal to the applicable Quoted Rate,
      and
      after such Repayment Date, at a per annum rate equal to two percent (2%) above
      the Prime-based Rate, which interest, in any case, shall be payable upon demand.
      

    

    All
      payments under this Note shall be in immediately available United States funds,
      without setoff or counterclaim.

     

    3

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Borrower
      waives presentment, demand, protest, notice of dishonor, notice of demand or
      intent to demand, notice of acceleration or intent to accelerate, and all other
      notices, and agrees that no extension or indulgence to Borrower, or release,
      substitution or nonenforcement of any security, or release or substitution
      of
      any of Borrower, or any other party, whether with or without notice, shall
      affect the obligations of Borrower. Borrower waives all defenses or right to
      discharge available under Section 3-605 of the Uniform Commercial Code and
      waives all other suretyship defenses or right to discharge. Borrower agrees
      that
      Bank has the right to sell, assign, or grant participations, or any interest,
      in
      any or all of the Indebtedness, and that, in connection with such right, but
      without limiting its ability to make other disclosures to the full extent
      allowable, Bank may disclose all documents and information which Bank now or
      later has relating to Borrower and the Indebtedness, provided that the Bank
      shall not disclose any confidential information of the Borrower unless the
      recipient of such disclosure has agreed to keep the information
      confidential.

    

    Borrower
      agrees to reimburse Bank, or any other holder or owner of this Note, for any
      and
      all reasonable costs and expenses (including, without limit, court costs, legal
      expenses and reasonable attorneys' fees, whether inside or outside counsel
      is
      used (but excluding fees of in-house counsel for matters for which the Bank
      has
      engaged outside counsel), whether or not suit is instituted, and, if suit is
      instituted, whether at the trial court level, appellate level, in a bankruptcy,
      probate or administrative proceeding or otherwise) incurred in collecting or
      attempting to collect this Note or the Indebtedness or incurred in any other
      matter or proceeding relating to this Note or the Indebtedness.

    

    Borrower
      acknowledges and agrees that there are no contrary agreements, oral or written,
      establishing a term of this Note and agree that the terms and conditions of
      this
      Note may not be amended, waived or modified except in a writing signed by a
      duly
      authorized officer of Bank expressly stating that the writing constitutes an
      amendment, waiver or modification of the terms of this Note. If any provision
      of
      this Note is unenforceable in whole or part for any reason, the remaining
      provisions shall continue to be effective. THIS NOTE SHALL BE GOVERNED BY AND
      CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN.

    

    This
      Note
      shall bind Borrower and Borrower's respective successors and
      assigns.

    

    For
      purposes of this Note, the following terms will have the following
      meanings:

    

    "Advance"
      means a borrowing requested by Borrower and made by Bank under this Note in
      accordance with the terms hereof, including, without limitation, the
      continuation of an outstanding Advance as the same type of Advance or the
      conversion of an outstanding Advance to another type of Advance, and shall
      include a Prime-based Advance and a Quoted Rate Advance.

    

    "Business
      Day" means any day, other than a Saturday, Sunday or holiday, on which Bank
      is
      open for all or substantially all of its commercial banking business in Detroit,
      Michigan.

     

    4

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    "Prime-based
      Advance" means an Advance which bears interest at the Prime-based
      Rate.

     

    "Prime-based
      Rate" means a per annum interest rate which is equal to the greater of (a)
      the
      Prime Rate, or (b) the rate of interest equal to the sum of one half of one
      percent (0.5%) plus the rate of interest equal to the average of the rates
      on
      overnight Federal funds transactions with members of the Federal Reserve System
      arranged by Federal funds brokers (the "Overnight Rates"), as published by
      the
      Federal Reserve Bank of New York, or, if the Overnight Rates are not so
      published for any day, the average of the quotations for the Overnight Rates
      received by Bank from three (3) Federal funds brokers of recognized standing
      selected by Bank, as the same may be changed from time to time.

    

    "Prime
      Rate" means the per annum rate of interest established by Bank from time to
      time
      as its prime rate, which rate may not necessarily be Bank's lowest rate for
      loans.

     

    "Quoted
      Rate" means a per annum rate of interest, other than the Prime-based Rate,
      which
      is quoted by Bank and accepted by Borrower as the applicable interest rate
      with
      respect to a Quoted Rate Advance hereunder.

    

    "Quoted
      Rate Advance" means an Advance which bears interest at a Quoted
      Rate.

    

    “Repayment
      Date” means, (a) in respect of an outstanding Prime-based Advance, the Maturity
      Date (unless sooner accelerated in accordance with the terms of this Note),
      and
      (b) in respect of an outstanding Quoted Rate Advance, a date which is acceptable
      to and offered by Bank, in its sole and absolute discretion, as the Repayment
      Date for such Quoted Rate Advance and which is accepted by Borrower as the
      Repayment Date for such Advance, subject to and in accordance with the terms
      and
      conditions of this Note; provided,
      however,
      in the
      case of Quoted Rate Advances, in no event shall the Repayment Date in respect
      thereof be more than one month after the date of the respective Advance, and
      in
      no event shall any Repayment Date extend beyond the Maturity Date, and in the
      event that any Repayment Date occurs on any day which is not a Business Day,
      such Repayment Date shall be extended to the next succeeding Business Day,
      except that, as to any outstanding Quoted Rate Advances, if the next succeeding
      Business Day falls in another calendar month, the Repayment Date applicable
      thereto shall occur on the next preceding Business Day, and, to the extend
      applicable, interest shall continue to accrue and be payable during any such
      extensions of any Repayment Date.

     

    5

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    BORROWER
      AND BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE,
      BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE
      OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY,
      AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT
      OF
      LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED
      TO, THIS NOTE OR THE INDEBTEDNESS.

    

    6

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Nothing
      herein shall limit any right granted Bank by other instrument or by
      law.

     

    
      	 	 	 
	 	SEMCO
              ENERGY, INC.
	 
 	 
 	 
 
	 	By: 	/s/
              Michael V. Palmeri 
	 	 	
              

            
	 	 	 
	 	Its: 	Senior
              Vice President and Chief Financial Officer 
	 	 	
              

            
	 	 	 
	 	By: 	 
              Oct. 13, 2006
	 	 	
              

            
	 	 	 
	 	Its:  	 
	 	
              

            

    

    
 

    7

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