Document:

Exhibit
10.3

 

THE WARRANT EVIDENCED OR CONSTITUTED HEREBY, AND ALL
SHARES OF COMMON STOCK ISSUABLE HEREUNDER, HAVE BEEN AND WILL BE ISSUED WITHOUT
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) AND MAY NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR
HYPOTHECATED WITHOUT REGISTRATION UNDER THE ACT UNLESS EITHER (i) THE COMPANY
HAS RECEIVED AN OPINION OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY
SATISFACTORY TO THE COMPANY, TO THE EFFECT THAT REGISTRATION IS NOT REQUIRED IN
CONNECTION WITH SUCH DISPOSITION OR (ii) THE SALE OF SUCH SECURITIES IS MADE
PURSUANT TO SEC RULE 144.

 

WARRANT
TO PURCHASE COMMON STOCK

OF

TRESTLE HOLDINGS, INC.

 

October 31,
2003

 

THIS
CERTIFIES THAT, for value received by Trestle Holdings, Inc.,
a Delaware corporation (the “Company”), Andrew Borsanyi, or his
permitted registered assigns (“Holder”), is entitled, subject to the
terms and conditions of this Warrant, at any time or from time to time after
the Exercise Date of this Warrant, and before the Expiration Date, to purchase
from the Company the Warrant Shares, at an exercise price per share equal to
the Purchase Price.  Both the number of
shares of Common Stock purchasable upon exercise of this Warrant and the
Purchase Price are subject to adjustment and change as provided herein.

 

1.             CERTAIN DEFINITIONS.  As used in this Warrant the following terms
shall have the following respective meanings:

 

1.1           “Common Stock”
means the Common Stock of the Company and any other securities at any time
receivable or issuable upon exercise of this Warrant.

 

1.2           “Effective Date”
means October 31, 2003.

 

1.3           “Exercise Date”
means 6:30 a.m. Pacific Time on November 1, 2003.

 

1.4           “Expiration Date”
means 5:00 p.m. Pacific Time on the tenth (10th) anniversary of the
Effective Date.

 

1.5           “Fair Market Value”
of a share of Common Stock as of a particular date means:

 

(a)           If traded on a
securities exchange or the Nasdaq National Market, the Fair Market Value shall
be deemed to be the average of the closing prices of the Common Stock of the
Company on such exchange or market over the five (5) trading days ending
immediately prior to the applicable date of valuation;

 

(b)           If actively traded
over-the-counter, the Fair Market Value shall be deemed to be the average of
the closing bid prices over the thirty (30)-day period ending immediately prior
to the applicable date of valuation; and

 

 

(c)           If there is no active
public market, the Fair Market Value shall be the value thereof, as agreed upon
by the Company and the Holder; provided, however, that if the Company and the
Holder cannot agree on such value, such value shall be determined by an
independent valuation firm experienced in valuing businesses such as the
Company and jointly selected in good faith by the Company and the Holder.  Fees and expenses of the valuation firm
shall be paid for by the Company.

 

1.6           “Fully Diluted Basis”
means all of the Company’s issued and outstanding shares of common stock of the
Company, all common stock issued or issuable under or pursuant to all
convertible and derivative securities then outstanding.

 

1.7           “Purchase Price”
means $0.51.

 

1.8           “Registered Holder”
means any Holder in whose name this Warrant is registered upon the books and
records maintained by the Company.

 

1.9           “Warrant” as
used herein, shall include this Warrant and any warrant delivered in
substitution or exchange therefor as provided herein.

 

1.10         “Warrant Shares”
means 50,000 warrants.

 

2.             EXERCISE OF WARRANT.

 

2.1           Payment.  Subject to compliance with the terms and
conditions of this Warrant and applicable securities laws, this Warrant may be
exercised, in whole or in part at any time or from time to time, from and after
the Exercise Date and on or before the Expiration Date by the delivery
(including, without limitation, delivery by facsimile) of the form of Notice of
Exercise attached hereto as  Exhibit A (the “Notice of
Exercise”), duly executed by the Holder, at the principal office of the
Company, and as soon as practicable after such date, surrendering

 

(a)           this Warrant at the
principal office of the Company, and

 

(b)           payment, (i) in
cash (by check) or by wire transfer, (ii) by cancellation by the Holder of
indebtedness of the Company to the Holder; or (iii) by a combination of
(i) and (ii), of an amount equal to the product obtained by multiplying the
number of shares of Common Stock being purchased upon such exercise by the then
effective Purchase Price (the “Exercise Amount”).

 

2.2           Net Issue Exercise.
In lieu of the payment methods set forth in Section 2.1(b) above,
the Holder may elect to exchange all or some of this Warrant for shares of
Common Stock equal to the value of the amount of the Warrant being exchanged on
the date of exchange.  If Holder elects
to exchange this Warrant as provided in this Section 2.2, Holder
shall tender to the Company the Warrant for the amount being exchanged, along
with written notice of Holder’s election to exchange some or all of the
Warrant, and the Company shall issue to Holder the number of shares of the
Common Stock computed using the following formula:

 

	
  X =

  	
   

  	
  Y (A-B)

  
	
   

  	
   

  	
  A

  

 

	
  Where:

  	
  X =

  	
  the number of shares of
  Common Stock to be issued to Holder.

  
	
   

  	
   

  	
   

  
	
   

  	
  Y =

  	
  the number of shares of
  Common Stock purchasable under the amount of the Warrant being exchanged (as
  adjusted to the date of 

  

 

2

 

	
   

  	
  such calculation).

  
	
   

  	
   

  
	
  A =

  	
  the Fair Market Value
  of one share of the Common Stock.

  
	
   

  	
   

  
	
  B =

  	
  Purchase Price (as
  adjusted to the date of such calculation).

  

 

2.3           “Easy Sale” Exercise.  In lieu of the payment methods set forth in Section 2.1(b)
above, when permitted by law and applicable regulations (including Nasdaq and
NASD rules), the Holder may pay the Purchase Price through a “same day sale”
commitment from the Holder (and if applicable a broker-dealer that is a member
of the National Association of Securities Dealers (an “NASD Dealer”)),
whereby the Holder irrevocably elects to exercise this Warrant and to sell a
portion of the shares so purchased to pay the Purchase Price and the Holder
(or, if applicable, the NASD Dealer) commits upon sale (or, in the case of the
NASD Dealer, upon receipt) of such shares to forward the Purchase Price
directly to the Company.

 

2.4           Stock Certificates;
Fractional Shares.  As soon as
practicable on or after the date of any exercise of this Warrant, the Company
shall issue and deliver to the person or persons entitled to receive the same a
certificate or certificates for the number of whole shares of Common Stock
issuable upon such exercise, together with cash in lieu of any fraction of a
share equal to such fraction of the current Fair Market Value of one whole
share of Common Stock as of such date of exercise.  No fractional shares or scrip representing fractional shares
shall be issued upon an exercise of this Warrant.

 

2.5           Partial Exercise;
Effective Date of Exercise.  In case
of any partial exercise of this Warrant, the Company shall cancel this Warrant
upon surrender hereof and shall execute and deliver a new Warrant of like tenor
and date for the balance of the shares of Common Stock purchasable
hereunder.  This Warrant shall be deemed
to have been exercised immediately prior to the close of business on the date
of its surrender for exercise as provided above.  The person entitled to receive the shares of Common Stock
issuable upon exercise of this Warrant shall be treated for all purposes as the
holder of record of such shares as of the close of business on the date the
Holder is deemed to have exercised this Warrant.

 

2.6           Vesting.  Notwithstanding any portion of this Warrant
to the contrary, this Warrant may be exercised for (a) up to 30,000 of the
Warrant Shares at any time from and after the Exercise Date through the
Expiration Date and (b) the remaining Warrant Shares (the “Remaining Shares”)
at any time from and after December 31, 2003 through the Expiration
Date.  Notwithstanding the foregoing, in
the event that prior to December 31, 2003 (i) Holder voluntarily ceases
providing consulting services to the Company pursuant to that certain
Non-Exclusive Consulting Agreement dated as of the Effective Date (the
“Consulting Agreement”), by and between Holder and the Company in the absence
of the Company’s material breach of the Consulting Agreement, or (ii) the
Company terminates Holder’s engagement under the Consulting Agreement for
material breach by Holder of his obligations under Section 4.a. of the
Consulting Agreement, then from and after such termination of engagement, the
Holder shall have no right to exercise or otherwise acquire any portion of the
Remaining Shares.

 

3.             VALID ISSUANCE; TAXES.  All shares of Common Stock issued upon the
exercise of this Warrant shall be validly issued, fully paid and
non-assessable, and the Company shall pay all taxes and other governmental
charges that may be imposed in respect of the issue or delivery thereof.  The Company shall not be required to pay any
tax or other charge imposed in connection with any transfer involved in the
issuance of any certificate for shares of Common Stock in any name other than
that of the Registered Holder of this Warrant, and in such case the Company
shall not be required to issue or deliver any stock certificate or security
until such tax or other charge has

 

3

 

been paid, or it has been established to the Company’s reasonable
satisfaction that no tax or other charge is due.

 

4.             ADJUSTMENT OF PURCHASE PRICE AND NUMBER OF SHARES.  The number of shares of Common Stock
issuable upon exercise of this Warrant (or any shares of stock or other
securities or property receivable or issuable upon exercise of this Warrant)
and the Purchase Price are subject to adjustment upon occurrence of the
following events:

 

4.1           Adjustment for Stock
Splits, Stock Subdivisions or Combinations of Shares.  The Purchase Price of this Warrant shall be
proportionally decreased and the number of shares of Common Stock issuable upon
exercise of this Warrant (or any shares of stock or other securities at the
time issuable upon exercise of this Warrant) shall be proportionally increased
to reflect any stock split or subdivision of the Company’s Common Stock.  The Purchase Price of this Warrant shall be
proportionally increased and the number of shares of Common Stock issuable upon
exercise of this Warrant (or any shares of stock or other securities at the
time issuable upon exercise of this Warrant) shall be proportionally decreased
to reflect any combination of the Company’s Common Stock.

 

4.2           Adjustment for
Dividends or Distributions of Stock or Other Securities or Property.  In case the Company shall make or issue, or
shall fix a record date for the determination of eligible holders entitled to
receive, a dividend or other distribution with respect to the Common Stock (or
any shares of stock or other securities at the time issuable upon exercise of the
Warrant) payable in (a) securities of the Company or (b) assets (excluding cash
dividends paid or payable solely out of retained earnings), then, in each such
case, the Holder of this Warrant on exercise hereof at any time after the
consummation, effective date or record date of such dividend or other
distribution, shall receive, in addition to the shares of Common Stock (or such
other stock or securities) issuable on such exercise prior to such date, and
without the payment of additional consideration therefor, the securities or
such other assets of the Company to which such Holder would have been entitled
upon such date if such Holder had exercised this Warrant on the date hereof and
had thereafter, during the period from the date hereof to and including the
date of such exercise, retained such shares and all such additional securities
or other assets distributed with respect to such shares as aforesaid during
such period giving effect to all adjustments called for by this Section 4.

 

4.3           Reclassification.  If the Company, by reclassification of
securities or otherwise, shall change any of the securities as to which
purchase rights under this Warrant exist into the same or a different number of
securities of any other class or classes, this Warrant shall thereafter
represent the right to acquire such number and kind of securities as would have
been issuable as the result of such change with respect to the securities that
were subject to the purchase rights under this Warrant immediately prior to
such reclassification or other change, and the Purchase Price therefor shall be
appropriately adjusted, all subject to further adjustment as provided in this Section 4.  No adjustment shall be made pursuant to this
Section 4.3 upon any conversion or redemption of the Common Stock
which is the subject of Section 4.5.

 

4.4           Adjustment for
Capital Reorganization, Merger or Consolidation.  In case of any capital reorganization of the capital stock of the
Company (other than a combination, reclassification, exchange or subdivision of
shares otherwise provided for herein), or any merger or consolidation of the
Company with or into another corporation, or the sale of all or substantially
all the assets of the Company then, and in each such case, as a part of such
reorganization, merger, consolidation, sale or transfer, lawful provision shall
be made so that the Holder of this Warrant shall thereafter be entitled to
receive upon exercise of this Warrant, during the period specified herein and
upon payment of the Purchase Price then in effect, the number of shares of
stock or

 

4

 

other securities or property of the successor corporation resulting
from such reorganization, merger, consolidation, sale or transfer that a holder
of the shares deliverable upon exercise of this Warrant would have been
entitled to receive in such reorganization, consolidation, merger, sale or
transfer if this Warrant had been exercised immediately before such
reorganization, merger, consolidation, sale or transfer, all subject to further
adjustment as provided in this Section 4.  The foregoing provisions of this Section 4.4 shall
similarly apply to successive reorganizations, consolidations, mergers, sales
and transfers and to the stock or securities of any other corporation that are
at the time receivable upon the exercise of this Warrant.  If the per-share consideration payable to
the Holder hereof for shares in connection with any such transaction is in a
form other than cash or marketable securities, then the value of such
consideration shall be determined in good faith by the Company’s Board of
Directors.  In all events, appropriate
adjustment (as determined in good faith by the Company’s Board of Directors)
shall be made in the application of the provisions of this Warrant with respect
to the rights and interests of the Holder after the transaction, to the end
that the provisions of this Warrant shall be applicable after that event, as
near as reasonably may be, in relation to any shares or other property
deliverable after that event upon exercise of this Warrant.

 

4.5           Conversion of Common
Stock.  In case all or any portion
of the authorized and outstanding shares of Common Stock of the Company are
redeemed or converted or reclassified into other securities or property
pursuant to the Company’s Certificate of Incorporation or otherwise, or the
Common Stock otherwise ceases to exist, then, in such case, the Holder of this
Warrant, upon exercise hereof at any time after the date on which the Common
Stock is so redeemed or converted, reclassified or ceases to exist (the “Termination
Date”), shall receive, in lieu of the number of shares of Common Stock that
would have been issuable upon such exercise immediately prior to the
Termination Date, the securities or property that would have been received if
this Warrant had been exercised in full and the Common Stock received thereupon
had been simultaneously converted immediately prior to the Termination Date,
all subject to further adjustment as provided in this Warrant.  Additionally, the Purchase Price shall be
immediately adjusted to equal the quotient obtained by dividing (x) the
aggregate Purchase Price of the maximum number of shares of Common Stock for
which this Warrant was exercisable immediately prior to the Termination Date by
(y) the number of shares of Common Stock of the Company for which this Warrant
is exercisable immediately after the Termination Date, all subject to further
adjustment as provided herein.

 

5.             CERTIFICATE AS TO ADJUSTMENTS.  In each case of any adjustment in the
Purchase Price, or number or type of shares issuable upon exercise of this
Warrant, the Chief Financial Officer or Controller of the Company shall compute
such adjustment in accordance with the terms of this Warrant and prepare a
certificate setting forth such adjustment and showing in detail the facts upon
which such adjustment is based, including a statement of the adjusted Purchase
Price.  The Company shall promptly send
(by facsimile and by either first class mail, postage prepaid or overnight
delivery) a copy of each such certificate to the Holder.

 

6.             LOSS OR MUTILATION.  Upon receipt of evidence reasonably
satisfactory to the Company of the ownership of and the loss, theft,
destruction or mutilation of this Warrant, and of indemnity reasonably
satisfactory to it, and (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will execute and deliver in lieu
thereof a new Warrant of like tenor as the lost, stolen, destroyed or mutilated
Warrant.

 

7.             RESERVATION OF COMMON STOCK.  The Company hereby covenants that at all
times there shall be reserved for issuance and delivery upon exercise of this
Warrant such number of shares of Common Stock or other shares of capital stock
of the Company as are from time to time issuable upon exercise of this Warrant
and, from time to time, will take all steps necessary to amend its Certificate
of Incorporation to provide sufficient reserves of shares of

 

5

 

Common Stock issuable upon exercise of this Warrant.  All such shares shall be duly authorized,
and when issued upon such exercise, shall be validly issued, fully paid and
non-assessable, free and clear of all liens, security interests, charges and
other encumbrances or restrictions on sale and free and clear of all preemptive
rights, except encumbrances or restrictions arising under federal or state
securities laws. Issuance of this Warrant shall constitute full authority to
the Company’s Officers who are charged with the duty of executing stock
certificates to execute and issue the necessary certificates for shares of
Common Stock upon the exercise of this Warrant.

 

8.             TRANSFER AND EXCHANGE.  Subject to the terms and conditions of this
Warrant and compliance with all applicable securities laws, this Warrant and
all rights hereunder may be transferred to any Registered Holder’s parent,
subsidiary or affiliate, or, if the Registered Holder is a partnership, to any
partner of such Registered Holder, in whole or in part, on the books of the
Company maintained for such purpose at the principal office of the Company
referred to above, by the Registered Holder hereof in person, or by duly
authorized attorney, upon surrender of this Warrant properly endorsed and upon payment
of any necessary transfer tax or other governmental charge imposed upon such
transfer.  Upon any permitted partial
transfer, the Company will issue and deliver to the Registered Holder a new
Warrant or Warrants with respect to the shares of Common Stock not so
transferred.  Each taker and holder of
this Warrant, by taking or holding the same, consents and agrees that when this
Warrant shall have been so endorsed, the person in possession of this Warrant
may be treated by the Company, and all other persons dealing with this Warrant,
as the absolute owner hereof for any purpose and as the person entitled to
exercise the rights represented hereby, any notice to the contrary
notwithstanding; provided, however that until a transfer of this Warrant is
duly registered on the books of the Company, the Company may treat the
Registered Holder hereof as the owner for all purposes.

 

9.             RESTRICTIONS ON TRANSFER.  The Holder, by acceptance hereof, agrees
that, absent an effective registration statement filed with the Securities and
Exchange Commission (the “SEC”) under the Securities Act of 1933, as
amended (the “Securities Act”) covering the disposition or sale of this
Warrant or the Common Stock issued or issuable upon exercise hereof, as the
case may be, and registration or qualification under applicable state
securities laws, such Holder will not sell, transfer, pledge, or hypothecate
any or all of this Warrant or such Common Stock, as the case may be, unless
either (i) the Company has received an opinion of counsel, in form and
substance reasonably satisfactory to the Company, to the effect that such
registration is not required in connection with such disposition or (ii) the
sale of such securities is made pursuant to SEC Rule 144 or any successor
provision.

 

10.           COMPLIANCE WITH SECURITIES LAWS.  By acceptance of this Warrant, the Holder
hereby represents, warrants and covenants that (a) the Holder is an “accredited
investor” within the meaning of Rule 501 of Regulation D, promulgated under the
Securities Act; (b) absent an effective registration statement filed with the
SEC under the Securities Act covering the disposition or sale of the Warrant
Shares, any shares of stock purchased upon exercise of this Warrant shall be
acquired for investment only and not with a view to, or for sale in connection
with, any distribution thereof within the meaning of the Securities Act; (c)
the Holder has had such opportunity as such Holder has deemed adequate to
obtain from representatives of the Company such information as is necessary to
permit the Holder to evaluate the merits and risks of his investment in the
Company; (d) the Holder is able to bear the economic risk of holding such
shares as may be acquired pursuant to the exercise of this Warrant for an
indefinite period; (e) the Holder understands that the shares of stock acquired
pursuant to the exercise of this Warrant will not be registered under the
Securities Act (unless otherwise required pursuant to exercise by the Holder of
the registration rights, if any, granted to the Registered Holder) and will be
“restricted securities” within the meaning of Rule 144 under the Securities Act
and that the exemption from registration under Rule 144 will not be available
for at least one (1) year from the date of exercise of this

 

6

 

Warrant, subject to any special treatment by the SEC for exercise of
this Warrant pursuant to Section 2.2, and even then will not be
available unless a public market then exists for the stock, adequate information
concerning the Company is then available to the public, and other terms and
conditions of Rule 144 are complied with; and (f) all stock certificates
representing shares of stock issued to the Holder upon exercise of this Warrant
may have affixed thereto ( absent an effective registration statement filed
with the SEC under the Securities Act covering the disposition or sale of the
Warrant Shares) a legend substantially in the following form:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR UNDER THE SECURITIES LAWS OF ANY STATE. 
THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND
RESALE AND MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE
ACT AND THE APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR
EXEMPTION THEREFROM.  INVESTORS SHOULD
BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS
INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. 
THE ISSUER OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN
FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED
TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS.

 

11.           NO RIGHTS OR LIABILITIES AS STOCKHOLDER.  This Warrant shall not entitle the Holder to
any voting rights or other rights as a stockholder of the Company.  In the absence of affirmative action by such
Holder to purchase Common Stock by exercise of this Warrant, no provisions of
this Warrant, and no enumeration herein of the rights or privileges of the
Holder hereof shall cause such Holder hereof to be a stockholder of the Company
for any purpose.

 

12.           REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The Company hereby represents and warrants
to Holder that:

 

12.1         Due Authorization;
Consents.  All corporate action on
the part of the Company, its officers, directors and shareholders necessary for
(a) the authorization, execution and delivery of, and the performance of all
obligations of the Company under, this Warrant, and (b) the authorization,
issuance, reservation for issuance and delivery of all of the Common Stock
issuable upon exercise of this Warrant, has been duly taken.  This Warrant constitutes a valid and binding
obligation of the Company enforceable in accordance with its terms, subject, as
to enforcement of remedies, to applicable bankruptcy, insolvency, moratorium,
reorganization and similar laws affecting creditors’ rights generally and to
general equitable principles.  All
consents, approvals and authorizations of, and registrations, qualifications
and filings with, any federal or state governmental agency, authority or body,
or any third party, required in connection with the execution, delivery and
performance of this Warrant and the consummation of the transactions
contemplated hereby have been obtained.

 

12.2         Organization.  The Company is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has all requisite corporate power to own, lease and operate its property
and to carry on its business as now being conducted and as currently proposed
to be conducted.

 

7

 

12.3         Valid Issuance of
Stock.  The outstanding shares of
the capital stock of the Company are, and the Warrant Shares when issued will
be, duly and validly issued, fully paid and non-assessable, and such shares,
and all outstanding options and other securities of the Company, have been (or
in the case of the Warrant Shares, will be) issued in full compliance with the
registration and prospectus delivery requirements of the Securities Act and the
registration and qualification requirements of all applicable state securities
laws, or in compliance with applicable exemptions therefrom, and all other
provisions of applicable federal and state securities laws, including without
limitation, anti-fraud provisions.

 

12.4         Governmental Consents.  All consents, approvals, orders,
authorizations or registrations, qualifications, declarations or filings with
any federal or state governmental authority on the part of the Company required
in connection with the consummation of the transactions contemplated herein
shall have been obtained prior to and be effective as of the Effective Date.

 

13.           NOTICES. 
Except as may be otherwise provided herein, all notices, requests,
waivers and other communications made pursuant to this Agreement shall be in
writing and shall be conclusively deemed to have been duly given (a) when hand
delivered to the other party; (b) three business days after deposit in the U.S.
mail with first class or certified mail receipt requested postage prepaid and
addressed to the other party as set forth below, provided that the sending
party receives a signed return receipt; or (c) the next business day after
deposit with a national overnight delivery service, postage prepaid, addressed
to the parties as set forth below with next-business-day delivery guaranteed,
provided that the sending party receives a confirmation of delivery from the
delivery service provider.

 

	
  To Holder:

  	
   

  	
  To the Company:

  
	
  Andrew Borsanyi

  	
   

  	
  Trestle Holdings, Inc.

  
	
  c/o Marta Borsanyi

  	
   

  	
  11835 West Olympic
  Blvd., Suite 550

  
	
  The Concord Group

  	
   

  	
  Los Angeles,
  California  90064

  
	
  130 Newport Center
  Drive, Suite 230

  Newport Beach, CA 92660

  	
   

  	
  Attn:  President

  

 

A party may change or supplement the addresses given
above, or designate additional addresses, for purposes of this Section 13
by giving the other party written notice of the new address in the manner set
forth above.

 

14.           HEADINGS. 
The headings in this Warrant are for purposes of convenience in
reference only, and shall not be deemed to constitute a part hereof.

 

15.           LAW GOVERNING.  This Warrant shall be construed and enforced in accordance with,
and governed by, the laws of the State of California, without regard to the
conflict of law principles thereof.

 

16.           NO IMPAIRMENT.  The Company will not, by amendment of its Certificate of
Incorporation or bylaws, or through reorganization, consolidation, merger,
dissolution, issue or sale of securities, sale of assets or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the
terms of this Warrant, but will at all times in good faith assist in the
carrying out of all such terms and in the taking of all such action as may be
necessary or appropriate in order to protect the rights of the Registered
Holder of this Warrant against impairment. 
Without limiting the generality of the foregoing, the Company (a) will
not increase the par value of any shares of stock issuable upon the exercise of
this Warrant above the amount payable therefor upon such exercise, and (b) will
take all such action as may be necessary or appropriate in order that the

 

8

 

Company may validly and legally issue fully paid and non-assessable
shares of Common Stock upon exercise of this Warrant.

 

17.           NOTICES OF RECORD DATE.  In case:

 

17.1         the Company shall take a
record of the holders of its Common Stock (or other stock or securities at the
time receivable upon the exercise of this Warrant), for the purpose of
entitling them to receive any dividend or other distribution, or any right to
subscribe for or purchase any shares of stock of any class or any other
securities or to receive any other right; or

 

17.2         of any consolidation or
merger of the Company with or into another corporation, any capital
reorganization of the Company, any reclassification of the capital stock of the
Company, or any conveyance of all or substantially all of the assets of the
Company to another corporation in which holders of the Company’s stock are to
receive stock, securities or property of another corporation; or

 

17.3         of any voluntary
dissolution, liquidation or winding-up of the Company; or

 

17.4         of any redemption or
conversion of all outstanding Common Stock;

 

then, and in each such case, the Company will mail or
cause to be mailed to the Registered Holder of this Warrant a notice
specifying, as the case may be, (a) the date on which a record is to be taken
for the purpose of such dividend, distribution or right, or (b) the date on
which such reorganization, reclassification, consolidation, merger, conveyance,
dissolution, liquidation, winding-up, redemption or conversion is to take
place, and the time, if any is to be fixed, as of which the holders of record
of Common Stock or (such stock or securities as at the time are receivable upon
the exercise of this Warrant), shall be entitled to exchange their shares of
Common Stock (or such other stock or securities), for securities or other
property deliverable upon such reorganization, reclassification, consolidation,
merger, conveyance, dissolution, liquidation or winding-up.  The Company shall use all reasonable efforts
to ensure such notice shall be delivered at least thirty (30) days prior to the
date therein specified.

 

18.           SEVERABILITY.  If any term, provision, covenant or restriction of this Warrant
is held by a court of competent jurisdiction to be invalid, void or
unenforceable, the remainder of the terms, provisions, covenants and
restrictions of this Warrant shall remain in full force and effect and shall in
no way be affected, impaired or invalidated.

 

19.           COUNTERPARTS.  For the convenience of the parties, any number of counterparts of
this Warrant may be executed by the parties hereto and each such executed
counterpart shall be, and shall be deemed to be, an original instrument.

 

20.           NO INCONSISTENT AGREEMENTS.  The Company will not on or after the date of
this Warrant enter into any agreement with respect to its securities which is
inconsistent with the rights granted to the Holder of this Warrant or otherwise
conflicts with the provisions hereof. 
The rights granted to the Holder hereunder do not in any way conflict
with and are not inconsistent with the rights granted to holders of the
Company’s securities under any other agreements, except rights that have been
waived.

 

21.           SATURDAYS, SUNDAYS AND HOLIDAYS.  If the Expiration Date falls on a Saturday,
Sunday or legal holiday, the Expiration Date shall automatically be extended
until 5:00 p.m. the next business day.

 

9

 

22.           ENTIRE AGREEMENT.  This Warrant contains the sole and entire agreement and
understanding of the parties with respect to the entire subject matter of this
Warrant, and any and all prior discussions, negotiations, commitments and
understandings, whether oral or otherwise, related to the subject matter of
this Warrant are hereby merged herein.

 

23.           PIGGYBACK
REGISTRATION RIGHTS.

 

23.1         Right
to Piggyback.  Whenever the Company
proposes to register any of its securities under the Securities Act (other than
on a registration on Form S-4 or any successor form or a registration of
non-convertible debt securities) on a registration form which may be used for
the registration of any Warrant Shares (a “Piggyback Registration”), the
Company will give prompt written notice to Holder of its intention to effect
such a registration and will include in such registration all Warrant Shares
(in accordance with the priorities set forth in Sections 23.2 and 23.3 below)
with respect to which the Company has received written requests for inclusion
within fifteen (15) days after the delivery of the Company’s notice.

 

23.2         Priority
on Primary Registrations.  If a
Piggyback Registration is an underwritten primary registration on behalf of the
Company and the managing underwriters advise the Company in writing that in
their opinion the number of securities requested to be included in such
registration exceeds the number which can reasonably be sold in such offering,
the Company will include in such registration first, the securities that the
Company proposes to sell;  and second,
the securities that any holder of registration rights issued prior to the
Effective Date proposes to sell; and third, the Warrant Shares requested to be
included in such registration, pro rata as among the holders thereof with their
respective numbers of shares requested to be included in such registration
statement.

 

23.3         Priority
on Secondary Registrations.  If a
Piggyback Registration is an underwritten secondary registration on behalf of
holders of the Company’s securities other than a demand registration and the
managing underwriters advise the Company in writing that in their opinion the
number of securities requested to be included in such registration exceeds the
number which can reasonably be sold in such offering, the Company will include
in such registration first, the securities that any holder of registration
rights issued prior to the Effective Date proposes to sell; and third, the
Warrant Shares requested to be included in such registration, pro rata as among
the holders thereof with their respective numbers of shares requested to be
included in such registration statement; and second, any securities proposed to
be included by the Company for its own account.

 

23.4         Other
Registrations.  If the Company has
previously filed a registration statement with respect to Warrant Shares
pursuant to this Section 23, and if such previous registration has not
been withdrawn or abandoned, the Company will not file or cause to be effected
any other registration of any of its equity securities or securities
convertible or exchangeable into or exercisable for its equity securities under
the Securities Act (except on Form S-4 or any successor form), whether on its
own behalf or at the request of any holder or holders of such securities, until
a period of at least 90 days has elapsed from the effective date of such
previous registration.

 

23.5         Selection
of Underwriters.  In connection with
any Piggyback Registration in which Holder has elected to include Warrant
Shares, the Company shall have the right to select the managing underwriters to
administer any offering of the Company’s securities in which the Company
participates.

 

10

 

IN WITNESS WHEREOF, the parties hereto have
executed this Warrant as of the Effective Date.

 

 

	
   

  	
  TRESTLE HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   /s/ Andrew Borsanyi

  	
   

  	
  By:

  	
   /s/ Gary Freeman

  
	
  Andrew Borsanyi

  	
  Name:

  	
    Gary Freeman

  
	
   

  	
  Its:

  	
    Chief Financial Officer

  
							

 

 

SIGNATURE PAGE TO WARRANT
TO PURCHASE COMMON STOCK

 

11

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

(To be executed
upon exercise of Warrant)

 

Trestle
Holdings, Inc.

 

The undersigned hereby irrevocably elects to exercise
the right of purchase represented by the within Warrant Certificate for, and to
purchase thereunder, the securities of Trestle Holdings, Inc., as provided for
therein, and (check the applicable box):

 

	
  o

  	
   

  	
  tenders herewith payment of the exercise price in
  full in the form of cash or a certified or official bank check in same-day
  funds in the amount of
  $                       
  for
                         
  such securities.

  
	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  Elects the [Net Issue Exercise][Easy Sale Exercise]
  option pursuant to Section 2.2 or 2.3 of the Warrant, and accordingly
  requests delivery of a net of
                                         
  of such securities.

  

 

Please issue a certificate or certificates for such
securities in the name of, and pay any cash for any fractional share to (please
print name, address and social security number):

 

	
  Name:

  	
   

  
	
   

  	
   

  
	
  Address:

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  

 

Note:  The
above signature should correspond exactly with the name on the first page of
this Warrant Certificate or with the name of the assignee appearing in the
assignment form below.

 

If said number of shares shall not be all the shares
purchasable under the within Warrant Certificate, a new Warrant Certificate is
to be issued in the name of said undersigned for the balance remaining of the
shares purchasable thereunder rounded up to the next higher whole number of
shares.

 

 

EXHIBIT B

 

ASSIGNMENT

 

(To be executed
only upon assignment of Warrant Certificate)

 

For value received, the undersigned hereby sells,
assigns and transfers unto
                            
the within Warrant Certificate, together with all right, title and interest
therein, and does hereby irrevocably constitute and appoint
                                      
attorney, to transfer said Warrant Certificate on the books of the within-named
Company with respect to the number of Warrants set forth below, with full power
of substitution in the premises:

 

	
  Name(s) of Assignee(s)

  	
   

  	
  Address

  	
   

  	
  # of
  Warrants

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

And if said number of Warrants shall not be all the
Warrants represented by the Warrant Certificate, a new Warrant Certificate is
to be issued in the name of said undersigned for the balance remaining of the
Warrants registered by said Warrant Certificate.

 

 

	
   

  	
   

  
	
  Dated:

  	
   

  
	
   

  	
   

  
	
  Signature:

  	
   

  

 

Notice:  The
signature to the foregoing Assignment must correspond to the name as written
upon the face of this security in every particular, without alteration or any
change whatsoever; signature(s) must be guaranteed by an eligible guarantor
institution (banks, stock brokers, savings and loan associations and credit
unions with membership in an approved signature guarantee medallion program)
pursuant to Securities and Exchange Commission Rule 17Ad-15.Seventh Amendment to Credit Agreement

EXHIBIT 10.1

 

SEVENTH AMENDMENT TO CREDIT AGREEMENT

            THIS SEVENTH AMENDMENT
TO CREDIT AGREEMENT (the “Amendment”) is made and entered into as of the 31st day of October 2003, among MILLER
INDUSTRIES, INC., a Tennessee corporation (“Parent”), each of the other Subsidiaries of Parent listed on the signature
pages hereof (together with Parent, collectively, “Borrowers”), the Lenders whose signatures appear on the signature
pages hereof (the “Lenders”), THE CIT GROUP/BUSINESS CREDIT, INC., as Collateral Agent, and BANK OF AMERICA, N.A., as
Administrative Agent, Syndication Agent, Existing Title Collateral gent and Letter of Credit Issuer (in such capacities, together
with the Collateral Agent, the “Agents”).

W I T N E S S E T H:

            WHEREAS, Borrower, the
Lenders and the Agents entered into that certain Credit Agreement, dated as of July 23, 2001, pursuant to which the Lenders agreed
to make certain loans to Borrowers (as amended, modified, supplemented and restated from time to time, the “Credit
Agreement”); and

            WHEREAS, the Borrowers,
the Agents and Lenders desire to make certain amendments to the Credit Agreement on the terms and conditions set forth
herein.

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

           
1.         Definitions.  All capitalized terms used herein and not otherwise
expressly defined herein shall have the respective meanings given to such terms in the Credit Agreement.

           
2.         Amendments to Credit Agreement.

           
            (a)        Annex A to the
Credit Agreement shall be amended by:

                                   
(i)         amending the definition of Letter of Credit Subfacility by deleting the amount
“$10,000,000” and inserting in lieu thereof the amount “$1,500,000”.

                                   
(ii)        amending the definition of Maximum Miller Revolver Amount by deleting the amount
“$42,000,000” and inserting in lieu thereof the amount “$30,000,000”.

                                   
(iii)       amending subsection (b)(iv) of the definition of Maximum RoadOne Revolver Amount by
deleting the amount “$9,000,000” and inserting in lieu thereof the amount “$2,500,000”.

                                   
(iv)       amending subsection (b)(i) of the definition of Miller Borrowing Base by deleting the
amount “$5,000,000” and inserting in lieu thereof the amount “$3,500,000”.

                                 
(v)        amending the definition of Net Senior Creditor Proceeds by replacing the defined term
“Term Loan” in subsections (a) and (b) thereof with the defined term “Original Term Loan”.

                                 
(vi)       amending clause (f) of the definition of Restricted Investment by deleting the following
text in its entirety:  “in an aggregate amount outstanding not to exceed $4,000,000”.

                                 
(vii)      amending the definition of Term Loan and Term Loans by deleting the text thereof in its
entirety and in lieu thereof inserting the following text:

          “Term Loan” means, individually, each of the Original Term Loans and
the New Term Loans, as the context may require, and “Term Loans” means, collectively, the Original Term Loans
and the New Term Loans.

                                 
(viii)      adding thereto, in the appropriate place based on alphabetical order, the following new
defined term:

          “Seventh Amendment” means that certain “Seventh Amendment to
Credit Agreement” by and among the Borrowers, Lenders, and Agents, as identified therein, dated as of October 31,
2003.

                     
(b)        Section 7.25 of the Credit Agreement shall be amended by:

                                 
(i)         amending subsection (a) by deleting the amount “$5,000,000” and
inserting in lieu thereof the amount “$4,000,000;

                                 
(ii)        amending subsection (b) by deleting the amount “$4,000,000” and
inserting in lieu thereof the amount “$3,000,000”.

                     
(c)        Section 1.3 of the Credit Agreement shall be amended by deleting the text thereof in
its entirety and inserting in lieu thereof the following text:

                     
1.3       Term Loans.

                                 
(a)        Original Term Loans.

                                             
(i)         Amounts of the Original Term Loans.  Each Lender severally agrees
to make a term loan (any such term loan being referred to as an “Original Term Loan” and such term loans being
referred to collectively as the “Original Term Loans”) to the Borrowers on the Closing Date, upon the
satisfaction of the conditions precedent set forth in Article 8, in an amount equal to such Lender’s Pro Rata Share of
$8,000,000.  The Original Term Loans shall initially be Base Rate Term Loans.

2

                                             
(ii)        Making of the Original Term Loans.  Each Lender shall make the amount of
such Lender’s Original Term Loan available to the Collateral Agent in same day funds, to the Collateral Agent’s
designated account, not later than 3:00 p.m. (Atlanta, Georgia time) on the Closing Date.  After the Collateral Agent’s
receipt of the proceeds of such Original Term Loans, upon satisfaction of the conditions precedent set forth in
Article 8, the Collateral Agent shall make the proceeds of such Original Term Loans available to the Borrowers on such
Funding Date by transferring same day funds equal to the proceeds of such Original Term Loans received by the Collateral Agent to
the Designated Account.

                                              
(iii)       Original Term Loan Amortization.  The Original Term Loan shall be due and
payable in consecutive monthly principal installments of $167,000 each on the first day of each calendar month, commencing on
August 1, 2001, with a final principal installment of all unpaid principal due and payable on the Termination Date; 
provided, however, that (A) the principal installment payment otherwise due by the Borrowers on November 1, 2003 in
accordance with the preceding sentence shall be deferred and shall be due and payable by the Borrowers on the Termination Date, and
(B) the principal installment payment otherwise due by the Borrowers on December 1, 2003 in accordance with the preceding sentence
shall be deferred and shall be due and payable by the Borrowers on December 31, 2003.  Each such installment shall be payable
to the Collateral Agent for the account of the applicable Lenders.  Payments or prepayments of the Original Term Loans may not
be reborrowed.

                                 
(b)        New Term Loans. 

                                             
(i)         Amounts of the New Term Loans.  Each Lender severally agrees to
make a term loan (any such term loan being referred to as a “New Term Loan” and such term loans being referred
to collectively as the “New Term Loans”) to the Borrowers on the date on which the Seventh Amendment becomes
effective in accordance with its terms (the “New Term Loan Funding Date”), in an amount equal to such
Lender’s Pro Rata Share of $2,000,000.  The New Term Loans shall initially be Base Rate Term Loans.

                                             
(ii)        Making of the New Term Loans.  Each Lender shall make the amount of such
Lender’s New Term Loan available to the Collateral Agent in same day funds, to the Collateral Agent’s designated
account, not later than 3:00 p.m. (Atlanta, Georgia time) on the New Term Loan Funding Date.  After the Collateral
Agent’s receipt of the proceeds of such New Term Loans, the Collateral Agent shall make the proceeds of such New Term Loans
available to the Borrowers on such Funding Date by paying down the balance of the then-outstanding Revolving Credit Loans by the
aggregate amount of the New Term Loans (without any permanent reduction in the Commitments as a result of such
pay-down).

                                             
(iii)       New Term Loan Principal Payment.  The full principal amount of the New Term
Loan, together with any then unpaid interest thereon, shall be due and payable on the Termination Date.  Interest shall be
payable on the New Term Loan in accordance with Section 2.1(a).

3

                     
(d)        Section 3.4 of the Credit Agreement shall be amended by substituting the defined
terms Term Loan and Term Loans, in each place where either of such terms is used, for the respective defined terms Original Term
Loan and Original Term Loans.

                     
(e)        Section 3.8 of the Credit Agreement shall be amended by:

                                 
(i)         inserting the text “other than the New Term Loans,” immediately
following the phrase “third, to pay interest due in respect of all Loans,”;

                                 
(ii)        substituting the text “sixth, to pay or prepay principal of the Term
Loans” with the text “sixth, to pay or prepay principal of the Original Term Loans”;

                                 
(iii)       deleting the following text in its entirety “and eighth, to the payment of
any other Obligation (including any amounts relating to Bank Products) due to the Agents or any Lender by the Borrowers” and
in lieu thereof inserting the following text:

          “eighth, to the payment of any other Obligation other than the New Term Loans
(including any amounts relating to Bank Products) due to the Agents or any Lender by the Borrowers, and ninth, to the
payment of principal and interest in connection with the New Term Loans”.

                     
(f)         Section 8.1 of the Credit Agreement shall be amended by substituting the
defined term Term Loans from the first sentence thereof and replacing it with the defined term Original Term Loans.

                     
(g)        Schedule 1.1 to the Credit Agreement shall be amended and restated in the form
attached hereto.

          3.          Representations, Warranties and Covenants of Borrowers. To induce Agent and
Lenders to enter into this Amendment, each Borrower hereby represents, warrants and covenants to Agents and Lenders
that,

         
(a)        as of the date hereof, and after
giving effect to the terms hereof and to the terms of the Forbearance Agreement
(defined below), there exists no Default or Event of Default under the Credit
Agreement or any of the other Loan Documents, except Existing Defaults (as
defined in the Forbearance Agreement),

         
(b)        each representation and warranty
made or deemed to be made in this Amendment and in the Loan Documents is true
and correct in all material respects on and as of the date of this Amendment
(except to the extent that any such representation or warranty relates to a
prior specific date or period and except for any representation or warranty that
is untrue as a result of the occurrence or continuance of any of the Existing
Defaults as defined in the Forbearance Agreement) and Borrowers hereby reaffirm
each of the agreements, covenants and undertakings set forth in the Loan
Documents and in each and every other agreement, instrument and other document
executed in connection therewith or pursuant thereto as if Borrowers were making
said agreements, covenants and undertakings on the date hereof,

4

          (c)        each Borrower has the power and is duly
authorized to enter into, deliver and perform this Amendment and

          (d)        this Amendment and each of the Loan
Documents is the legal, valid and binding obligation of each Borrower enforceable against it in accordance with its
terms.

          4.       Conditions Precedent.  The effectiveness of this Amendment is subject to
the following conditions precedent:

                     
(a)        Delivery of Documents.  The Collateral Agent shall have received from the
Borrowers the following documents, all in form and substance acceptable to Collateral Agent in its sole discretion:

                                 (i)         executed originals of this Amendment;
and

                                 (ii)        such other documents and instruments as the
Agents or any Lender may reasonably request.

                     
(b)        Forbearance Agreement.  That certain Forbearance Agreement, dated as of
the date hereof, between and among Borrowers, Agents and Lenders (the “Forbearance Agreement”) (i) shall have
been executed and delivered by all parties thereto and (ii) shall have become effective in accordance with its terms and
conditions.

          5.  Lender Approval of New Independent Certified Public Accountants. 
Lenders and Agents hereby acknowledge and agree that the appointment by Borrowers of Joseph Decosimo and Company, LLP as new
certified public accountants for the Borrowers is satisfactory to them.

          6.  Miscellaneous.  Each of the Borrowers agrees to take such further
action as the Agents shall reasonably request in connection herewith to evidence the agreements herein contained.  This
Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which,
when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute
but one and the same instrument.  The Credit Agreement, as amended hereby, shall be binding upon and inure to the benefit of
the successors and permitted assigns of the parties hereto.  This Amendment shall be governed by, and construed and enforced
in accordance with, the internal laws of the State of Georgia, but without giving effect to principles of conflicts of laws
thereof.  This Amendment may not be modified, altered or amended except by agreement in writing signed by all of the parties
hereto.  Each Borrower acknowledges that it has consulted with counsel and with such other expert advisors as it deemed
necessary in connection with the negotiation, execution and delivery of this Amendment.  This Amendment shall be construed
without regard to any presumption or rule requiring that it be construed against the party causing this Amendment or any part
hereof to be drafted.

[signature pages follow]

5

            IN WITNESS WHEREOF,
Borrowers, the Agents and the Lenders have caused this Agreement to be duly executed, all as of the date first above
written.

	 	“PARENT”MILLER INDUSTRIES, INC.

 

By: /s/ J. Vincent Mish                                   

      J. Vincent Mish

      Chief Financial Officer

 

“SUBSIDIARY MILLER BORROWERS”

APACO, INC.

B&B ASSOCIATED INDUSTRIES, INC.

CHEVRON, INC.

CENTURY HOLDINGS, INC.

CHAMPION CARRIER CORPORATION

COMPETITION WHEELIFT, INC.

GOLDEN WEST TOWING EQUIPMENT INC.

KING AUTOMOTIVE & INDUSTRIAL

         EQUIPMENT, INC.

MID AMERICA WRECKER & EQUIPMENT

         SALES, INC. OF COLORADO

MILLER FINANCIAL SERVICES GROUP,

         INC.

MILLER/GREENEVILLE, INC.

MILLER INDUSTRIES DISTRIBUTING, INC.

MILLER INDUSTRIES INTERNATIONAL,

         INC.

MILLER INDUSTRIES TOWING

         EQUIPMENT INC.

PURPOSE, INC.

SONOMA CIRCUITS, INC.

SOUTHERN WRECKER CENTER, INC.

SOUTHERN WRECKER SALES, INC.

 

By:  /s/ J. Vincent Mish                                 

     J. Vincent Mish

    Vice President and Attorney-in-Fact of each

     entity listed above

    

 

[signatures continue on following pages]

 

6

	 	“SUBSIDIARY ROADONE BORROWERS” 

AETEX, INC., f/k/a A-EXCELLENCE

        TOWING
CO.

ALL AMERICAN TOWING SERVICES,

         INC.

B-G TOWING, INC.

BEAR TRANSPORTATION, INC.

BTRCX, INC. f/k/a BERT’S TOWING

         RECOVERY

         CORPORATION

BBSX, INC. f/k/a BOB BOLIN SERVICES,

          INC.

BASIEX, INC. f/k/a BOB’S AUTO SERVICE,

         
INC.

BTRX, INC.

BVSWS, INC. f/k/a BOB VINCENT AND SONS

          WRECKER SERVICE, INC.

CAL WEST TOWING, INC.

CBTX,INC., f/k/aCEDAR BLUFF 24 HOUR

         TOWING,
INC.

CCASX, INC.

CEX, INC., f/k/a CHAD’S INC.

CVDC, f/k/a CLEVELAND VEHICLE

        DETENTION CENTER,
INC.

D.A. HANELINE, INC.

DVREX, INC.

DOLLAR ENTERPRISES, INC.

DSX, INC., f/k/a DUGGER’S SERVICES,

  
      INC.

GMAR, INC., f/k/a GOOD MECHANIC AUTO

        CO. OF RICHFIELD, INC.

GREAT AMERICA TOWING, INC.

GREG’S TOWING, INC.

HTX, INC.

LTSX, INC., f/k/a LAZER TOW SERVICES,

         INC.

LASX, INC.

LWKR, INC.

MAEJO, INC.

MEL’S ACQUISITION CORP.

MGEX, INC.

MSTEX, INC.

MTSX INC.

MURPHY’S TOWING, INC.

    

[signatures continue on following pages]

 

7

	 	P.A.T., INC.

    PEX, INC., f/k/a/ PIPES ENTERPRISES,

      
      INC.

    RMA ACQUISITION CORP.

    RRIC ACQUISITION CORP.

    RSX, INC., f/k/a RECOVERY SERVICES,

        
INC.

    ROAD ONE, INC.

    ROADONE EMPLOYEE SERVICES, INC.

    ROAD ONE INSURANCE SERVICES, INC.

    ROAD ONE SERVICE, INC.

    ROAD ONE SPECIALIZED

              TRANSPORTATION, INC.ROADONE TRANSPORTATION AND

              LOGISTICS, INC.

    R.M.W.S., INC.

    SWSX, INC. (f/k/a SUBURBAN WRECKER

         SERVICE,
INC.)

TEXAS TOWING CORPORATION

TPCTH, INC.

TREASURE COAST TOWING, INC.

TREASURE COAST TOWING OF MARTIN

        COUNTY, INC.

TSSC, INC., f/k/a TRUCK SALES & SALVAGE

        CO., INC.

TWSX, INC.

WSX, INC., f/k/a WES’S SERVICE

        INCORPORATED

WTX, INC. (f/k/a WILTSE TOWING, INC.)

WTC, INC.

WTEX, INC.

ZTRX, INC., f/k/a ZEHNER TOWING &

 
      RECOVERY, INC.

By:      
/s/ J. Vincent Mish                                          

            J. Vincent Mish

            Vice President and Attorney-in-Fact of each

            entity listed above

    

 

[Signatures Continue on Following Pages]

 

8

	 	
“ADMINISTRATIVE AGENT, SYNDICATION

    AGENT AND EXISTING
TITLED

    COLLATERAL AGENT” 

BANK OF AMERICA, N.A., as the Administrative

Agent, Syndication Agent and Existing Titled

Collateral Agent

By:      
 /s/ Sherry Lail                                     

Name:   Sherry Lail

Title:     Senior Vice President

 

“LETTER OF CREDIT ISSUER”

BANK OF AMERICA, N.A., as the Letter of

Credit Issuer

 

By:      
 /s/ Sherry Lail                                     

Name:   Sherry Lail

Title:     Senior Vice President

 

“COLLATERAL AGENT”

THE CIT GROUP/BUSINESS CREDIT, INC., as

the Collateral Agent

 

By:  /s/ Kenneth B. Butler                                 

Name: Kenneth B. Butler

Title: Vice President

    

[signatures continue on following pages]

 

 

	 	“LENDERS”BANK OF AMERICA, N.A., as a Lender

 

By:      
 /s/ Sherry Lail                                     

Name:   Sherry Lail

Title:     Senior Vice President

 

THE CIT GROUP/BUSINESS CREDIT, INC.,

as a Lender

 

By:  /s/ Kenneth B. Butler                                 

Name: Kenneth B. Butler

Title: Vice President

 

FLEET CAPITAL CORPORATION, as a Lender

 

By:    /s/ Wes Mannis               

Name: Wes Mannis

Title: VP

    

  

 

SCHEDULE 1.1

	

 Lender

	
Total

Commitment

	
Revolving Loan

Commitment

	
Original Term Loan

Commitment

	
New Term Loan

Commitment

	
Pro Rata

Share

 (3 decimals)

	
Bank of America, N.A.

	
$16,420,329.09

	
$12,556,700.00

	
$3,090,909.09

	
$772,720.00

	
38.636

	
The CIT Group/Business

    Credit, Inc.

	
$16,420,329.09

	
$12,556,700.00

	
$3,090,909.09

	
$772,720.00

	
38.636

	
Fleet Capital Corporation

	
$9,659,341.82

	
$7,386,600.00

	
$1,818,181.82

	
$454,560.00

	
22.727

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