Document:

Exhibit

Exhibit 10.1

CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE

THIS CONFIDENTIAL SEPARATION AGREEMENT AND GENERAL RELEASE (the “Agreement”) is entered into on this 5th date of August 2015 by and between Harsco Corporation (hereinafter referred to as the "Company") and Richard E. Lundgren, Jr. ("Employee").

WHEREAS, Employee has been employed by the Company as a Senior Vice President and Group President, Harsco Metals & Minerals;

WHEREAS, Employee and the Company wish to end their employment relationship on mutually agreeable terms, as set forth in this Agreement; and

WHEREAS, the Company is amenable to classifying Employee’s separation as without cause pursuant to his offer letter dated March 18, 2014 provided that Employee agrees to the terms of this Agreement.

NOW, THEREFORE, in consideration of the mutual agreements and covenants hereinafter set forth, and intending to be legally bound, the parties agree as follows:

1.    Separation of Employment.  

Employee’s employment with the Company terminated on July 16, 2015 (the “Separation Date”), after which he will not report to work or accept any assignment or task on behalf of the Company other than to perform the obligations as expressly set forth herein. The Company shall pay Employee the regular base pay to which Employee is entitled through the Separation Date pursuant to regular payroll practices. In addition, the Company shall pay Employee for any unused vacation time that Employee accrued through the Separation Date.  These payments are subject to all applicable taxes and withholdings.  

2.    Severance Payments to Employee.   The Company will pay Employee severance in the total gross amount of Four Hundred Fifty Thousand Dollars ($450,000) (the "Severance Payment"). The Severance Payment will be paid in two equal installments with the first installment payment ($225,000) being paid within fifteen (15) business days following the Effective Date of this Agreement (as defined below) and no later than the pay period following the 60th day after the Employee’s Separation Date provided that Employee has signed this Agreement, not revoked such Agreement, and is in compliance with the other terms of this Agreement.  The second installment payment ($225,000) shall be paid on the first regular payroll date in January 2016.  These payments are subject to all applicable taxes and withholdings.  Employee agrees that the Company shall deduct from the first installment payment any personal expenses that Employee owes to the Company.   With the exception of any taxes that the Company withholds from the amount described in this paragraph, Employee remains responsible and liable for any and all taxes on the amount paid to him (and/or his estate if applicable).  

3.    Other Payments and Employee Benefits.

(a)     Group health, vision, and dental insurance, group term life insurance, and accidental death and dismemberment insurance, short and long-term disability coverage, flexible spending account, 401(k) plan, non-qualified retirement plan and pension plan participation shall cease as of the Separation Date, in accordance with the provisions of such plans.

(b)    After the Separation Date, Employee will become eligible to elect continuation of health care coverage under the Consolidated Omnibus Budget Reconciliation Act of 1986, as amended 

Exhibit 10.1

("COBRA"), with information regarding continuation rights provided in separate correspondence.  If Employee elects to enter into this Agreement and makes a timely election of COBRA, then the Company agrees to pay the Employee’s health insurance premium for the Employee, his spouse and covered dependents up to the first twelve (12) months of such coverage and/or reimburse Employee for any direct payment of premiums, within fifteen (15) calendar days of submission of reasonable proof of payment.  The Company's obligation, pursuant to this section, to pay COBRA premiums on behalf of Employee shall cease at such time that Employee secures comparable health insurance coverage from another source, including coverage from the employer of Employee's spouse.  Employee agrees to promptly notify the Company in writing upon obtaining other health insurance coverage.  In the event of Employee’s death prior to the expiration of the twelve (12) month period following the Employee’s Separation Date, the Company agrees to continue to pay the COBRA health insurance premiums for the Employee’s spouse and covered dependents through the end of the twelve (12) month period following Employee’s Separation Date.

(c)    The Company will agree to reimburse Employee for the reasonable costs to relocate his personal property from Pennsylvania to Tennessee, inclusive of two (2) round trip flights, in an aggregate amount not to exceed $2,500.

(d)    Nothing in this Agreement shall affect any rights that Employee may have under the Company's qualified or nonqualified retirement plans.  If applicable, Employee may make appropriate election for distribution or payment of benefits, if any, from these plans according to their respective provisions.  Otherwise, distribution or payment of benefits shall be made pursuant to the terms of such plans. 

(e)    Employee may elect to convert any group life insurance coverage to an individual program within thirty (30) days of the Separation Date at the rates provided by the carrier, with conversion information provided in separate correspondence; provided that, notwithstanding anything to the contrary herein, in the event of such election, the Employee shall be solely responsible for all premiums and costs associated with such coverage.

(f)    The Company will provide Employee the opportunity to participate in outplacement assistance through a vendor selected by the Company, up to a maximum cost of $7,500.00.  Employee must commence utilizing this outplacement service by September 30, 2015.

(g)    The Severance Payments and the payments set forth in Paragraph Nos. 3(b), 3(c) and 3(f) above shall be referred to collectively as the “Consideration Payments” in this Agreement.

(h)    The Company will not take any action to contest employee's receipt of unemployment compensation benefits in connection with the termination of Employee's employment; provided, however, that it is mutually understood that:  (i) the Company shall respond truthfully to any inquiries from the state unemployment compensation authorities (i.e., identifying the Consideration Payments in this Agreement and the Company will indicate that Employee was involuntarily terminated for business reasons and not for willful misconduct), and (ii) unemployment compensation eligibility decisions are made by the state unemployment compensation authorities.

(i)    No Other Payment.  Employee acknowledges that the Consideration Payments, in whole or in part, represent consideration to Employee for the terms of this Agreement.  Other than as expressly provided for herein, Employee shall receive no compensation or benefit from the Company after the Effective Date of this Agreement.  In other words, Employee is not and shall not be entitled to any payment or other benefits other than those described in this Agreement.  Employee also affirms that he has been paid and/or has received all compensation, wages, bonuses, commissions, and/or benefits to which he may be entitled.  Except as set forth in this Agreement, Employee agrees that he is not entitled to any additional payment or 

Exhibit 10.1

benefits from the Company, including, but not limited to expense reimbursements, bonuses, commissions, attorneys’ fees, or any other compensation.

(j)    The Company’s obligation to pay the Consideration Payments set forth herein is subject to Employee’s performance of his obligations as set forth herein.

4.    General Release and Waiver of Claims.  

(a)    Employee Release.  Employee, for Employee and for Employee's executors, administrators, attorneys, personal representatives, successors, and assigns, for and in consideration of promises made herein, does hereby irrevocably and KNOWINGLY, VOLUNTARILY and unconditionally waive and release fully and forever any claim, cause of action, loss, expense, or damage, known or unknown, of any and every nature whatsoever against the Company and its past and present parents, subsidiaries, divisions, related or affiliated entities, and all officers, directors, agents, insurers, attorneys, employees, or trustees of any or all of the aforesaid entities (hereinafter collectively referred to as "Released Entities"), of whatever nature arising from any occurrence or occurrences, from the beginning of time until the date of Employee's execution of this Agreement, including without limitation any claims arising or in any way resulting from or relating to Employee's employment with the Company or the termination therefrom.  It is understood that this release does not serve to waive any claims that, pursuant to law, cannot be waived or subject to a release of this kind, including claims for unemployment or workers' compensation benefits.  By signing this Agreement, Employee is not giving up:  (i) any rights or claims that arise after Employee signs this Agreement; (ii) any claim to challenge the release under the ADEA; (iii) any rights to vested retirement benefits; and (iv) any rights that cannot be waived by operation of law.  

Without limitation of the foregoing, Employee specifically waives any claims against all Released Entities arising under Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Americans with Disabilities Act, the Family and Medical Leave Act, the Employee Retirement Income Security Act, the Equal Pay Act, the Genetic Information Nondiscrimination Act, the Fair Labor Standards Act, the Portal to Portal Act, the Pennsylvania Human Relations Act, the Pennsylvania Minimum Wage Act, the Pennsylvania Wage Payment and Collection Law, all as amended, or any other federal, state, or local law or ordinance relating in any way to unlawful discharge, discrimination, retaliation, wage payment, or fair employment practices, or any claim under any statutory or common law theory.

Should Employee institute any claim released by this paragraph, or should any other person institute such a claim on his behalf, Employee will reimburse the Company or applicable party, as applicable, for any legal fees and expenses incurred in defending such a claim.  The intent of this paragraph is to capture any and all claims that Employee has or may have against the Released Parties arising from events occurring prior to the execution of this Agreement and covered by the foregoing release of claims.  Employee warrants and represents that Employee has not, prior to signing this Agreement, filed any claim, charge, or complaint with any court or government agency in any way relating to Employee's employment with the Company, nor has Employee filed any claim, charge, or complaint whatsoever against any of the Released Entities identified above.  While this release does not prohibit Employee from disclosing the terms of this Agreement and/or filing a charge with the EEOC, NLRB or any other governmental entity related to the Employee’s employment or separation of employment, Employee understands and acknowledges that the General Release and Waiver of Claims set forth above will completely bar any recovery or relief obtained on Employee's behalf, whether monetary or otherwise, with respect to any of the claims that Employee has released against any and all of the Released Entities.  

Exhibit 10.1

(b)    No Existing Claims.  Employee acknowledges and agrees that, to his knowledge, he has not been subjected or exposed to unlawful treatment, harassment or discrimination, or been denied any statutory or other legal rights, by the Company during or in connection with his employment with the Company.  Employee further warrants that, in connection with his employment with the Company, he has not engaged in any criminal or illegal conduct.

(c)    Employee warrants and represents that Employee has not commenced or been party to any action or proceeding in any court or agency against any of the Released Entities with respect to any act, omission, transaction or occurrence up to and including the Effective Date of this Agreement.

5.    Inventions and Developments.  Employee agrees that all ideas, inventions, trade secrets, know how, documents, and data ("Developments") developed either during, in connection with, or pursuant to Employee's employment with the Company, shall become and/or remain the exclusive property of the Company.  Employee agrees to provide all reasonable assistance to the Company in perfecting and maintaining the Company's rights to the Developments.  The Company shall have the right to use the Developments for any purpose without any additional compensation to Employee.  In addition to the foregoing obligations, Employee understands and agrees that Employee also has obligations relating to the Intellectual Property of the Company as set forth in the Confidentiality Agreement dated March 20, 2014 (the “Confidentiality Agreement”), a copy of which is attached hereto as Exhibit “A,” and that these obligations survive termination of his employment.
    
6.    Non-Compete Obligations.    Employee reaffirms that he will comply with all of his post-employment obligations as set forth in the Non-Competition Agreement (the “Non-Competition Agreement”), a copy of which is attached hereto as Exhibit “B”.  

7.    Non-Disclosure of Information.  During the course of Employee’s employment, the Company provided Employee with trade secrets and/or confidential information.  Confidential information shall mean knowledge and information acquired by Employee concerning the Company’s business plans, client/customer prospects, client/customer lists, client/customer contacts, client/customer data, proposals to clients/customers and potential clients/customers, marketing plans, supplier and vendor lists and cost information, software and computer programs, data processing systems and information contained therein, inventions, product and other designs, technologies, price lists, profit margins, financial statements, financial data, acquisition and divestiture plans, legal matters, and any other trade secrets or confidential or proprietary information, documents, reports, plans or data, of or about the Company which is not already available to the public. Employee shall keep and maintain trade secret and confidential information of the Company confidential and shall not, at any time, either directly or indirectly, use any trade secret or confidential information for Employee’s benefit or for the benefit of any person or entity, and shall not divulge, disclose, reveal, or otherwise communicate any such trade secret or confidential information to any person or entity in any manner whatsoever, except as required by law.  In addition to the foregoing obligations, Employee understands and agrees that Employee also has confidentiality, nonuse, nondisclosure, non-solicitation and other obligations to the Company as set forth in the Confidentiality Agreement and Noncompetition Agreement and that these obligations survive termination of his employment.  

8.    Confidentiality and Communications.  

(a)    Employee Confidentiality Obligation.  Employee agrees to keep the terms of this Agreement completely confidential, subject to the terms of Paragraph 4 above.  Employee may disclose any information concerning the Agreement to Employee’s attorneys, spouse, tax accountants, financial advisors, or as required by law, provided that, if Employee makes a disclosure to any such person and such person 

Exhibit 10.1

makes a disclosure that, if made by Employee, would breach this paragraph, such disclosure will be considered to be a breach of this paragraph.  

(b)    Employee Non-Disparagement.  Employee agrees to refrain from any publication, oral or written, of a defamatory, disparaging, or otherwise derogatory nature pertaining to the Company, its products and services, and its employees or customers.  

(c)    Company Non-Disparagement.  The Company shall instruct and cause its current Executive Leadership Team and the Human Resources management level employees authorized to provide information about Employee to prospective employers to refrain from any publication, oral or written, of a defamatory, disparaging, or otherwise derogatory nature pertaining to Employee.

9.    Return of Property.  Prior to receiving any Severance Payment noted in this agreement, Employee must immediately return all Company property including, but not limited to any equipment, keys, badges, cell phone, computers or electronic devices, files (electronic, paper or other media), records, or information relating to the Company including, but not limited to, fulfilling Employee’s obligation to return Company documents and other information as more fully required in Paragraph 2 of the Confidentiality Agreement.  

10.    Non-Solicitation.  In consideration of the Consideration Payments, Employee agrees that for a period of one year after the Separation Date (“Restricted Period”), Employee will not participate in recruiting or hiring any individual who is employed by the Company; and Employee will not engage in any discussions or communications with any such employee regarding potential employment or business opportunities; and Employee will not communicate to any other business, person, or entity about the suitability for employment of any individual who is employed by the Company; provided that, Employee may serve as a reference for an individual who has decided to leave the employ of the Company through no direct or indirect involvement or encouragement of Employee and who independently approaches Employee requesting that he serve as a reference.  In such case, Employee may provide a reference on behalf of such individual subject to the non-disparagement obligations owed to the Company set forth in Paragraph 8 above.  The foregoing non-solicitation obligations are in addition to the non-solicitation obligations set forth in the Noncompetition Agreement.

11.    Cooperation.  For a reasonable period of four (4) months following the Separation Date, Employee will provide reasonable assistance and information necessary to the transition of Employee's job responsibilities.  This duty to cooperate includes assistance and cooperation with the Company in locating information or data, providing other known information, assisting in legal matters relating to the Company about which Employee may have information, and transitioning business and legal relationships.  Employee agrees to be reasonably available by phone and/or in person at the Company's request for such purposes.  This duty to cooperate also includes assistance and cooperation with the Company and/or other persons engaged by the Company in the investigation, prosecution, and/or defense of any threatened or asserted litigation or investigations initiated by, or involving the Company or any person or entity affiliated with it.  This agreement to cooperate also includes, but is not limited to, preparing for and truthfully testifying in connection with any such investigation or proceeding.  Employee understands that Employee was employed as a representative of the Company, and Employee will not assist any person or entity in any matter adverse to the Company without first providing written notice to the Company’s General Counsel unless otherwise prohibited by law.  
        
12.    Incentive and Equity Awards.   All of Employee’s incentive and/or equity compensation awards granted to him by the Company that remain outstanding and unvested as of the Separation Date shall be terminated effective as of the Separation Date and be forfeited without consideration including, but not 

Exhibit 10.1

limited to the, unvested stock appreciation rights, unvested restricted stock units, unvested performance share units, unearned incentive payments and unvested change of control payments.  Employee’s vested stock appreciation rights shall be governed by the terms of the 2013 Equity and Incentive Compensation Plan and his May 9, 2015 Stock Appreciation Rights Agreement.

13.    No Representations or Admissions.  Neither the Company nor Employee admit any wrongdoing or liability of any sort and have made no representation as to any wrongdoing or liability of any sort, and this Agreement is executed to bring an amicable conclusion to the employment relationship.  

14.    Entire Agreement.  Employee agrees and acknowledges that no representation of fact or opinion has been made to induce Employee to enter into this Agreement or the General Release and Waiver of Claims contained herein, other than the terms of this Agreement itself.  This Agreement constitutes the entire and exclusive agreement between the parties hereto with respect to the terms associated with Employee's termination of employment and with respect to the rights and obligations of the parties going forward.  This Agreement shall supersede all previous or contemporaneous negotiations, agreements, commitments, statements, and writings between the parties other than the Non-Competition and Confidentiality Agreements. Notwithstanding the foregoing, the obligations in Paragraphs 5-10 above of this Agreement shall be in addition to any other contractual or legal obligations of Employee including, but not limited to, such obligations as are set forth in separate agreements between Employee and the Company.  

15.    Severability.  In the event that any provision of this Agreement shall be held to be void, voidable, or unenforceable, the remaining portions hereof shall remain in full force and effect.  If the release of claims language set forth in Paragraph 4 is found by a court of competent jurisdiction to be unenforceable, the parties agree that the court shall enforce the scope of the release to the maximum extent permitted by law to cure the defect, and Employee shall comply with such reformed obligations without entitlement to any additional monies, benefits and/or compensation.      

16.    Governing Law and Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Pennsylvania.  Any action, by either party, at law or in equity to enforce this Agreement or seek a remedy for any breach shall be brought in the Court of Common Pleas of Cumberland County Pennsylvania or the United States District Court for the Middle District of Pennsylvania, if jurisdiction requirements are otherwise met.  The prevailing party in any such action will be entitled to recover its attorneys' fees and costs.

17.    Successors and Assigns.  This Agreement is binding upon, and shall inure to the benefit of, the parties and their respective heirs, executors, successors, and assigns.  

18.    Acknowledgment.  This Agreement contains a release of Employee’s claims against the Company and Released Entities.  Employee has been advised to consult with an attorney as to whether to sign this Agreement and has consulted with an attorney of his choice.  Employee has been given twenty-one (21) calendar days (“Consideration Period”) to consider this Agreement before signing it and returning it to Tracey McKenzie, Chief Human Resources Officer, 350 Poplar Church Road, Camp Hill, PA 17011.  In the event Employee executes and returns this Agreement prior to the end of the Consideration Period, Employee acknowledges that his decision to do so was voluntary and that he had the opportunity to consider this Agreement for the entire Consideration Period.  The parties agree that this Agreement will not become effective until seven (7) calendar days after the execution of this Agreement and that Employee may, within seven (7) calendar days after the execution of this Agreement, revoke this Agreement in its entirety by written notice to the Company sent to Tracey McKenzie at the above address.  If written notice is not received by the end of the 7-day period, this Agreement will become effective and enforceable at that time (“Effective Date”).  

Exhibit 10.1

The parties represent and agree that each has fully read and understands the meaning of this Agreement and is voluntarily entering into this Agreement with the intention of giving up all claims against the other party as stated herein and for matters that arose up to and including the date the parties signed below.  The parties acknowledge that they are not in entering into this Agreement relying on any representations by the other party concerning the meaning of any aspect of this Agreement.

Harsco Corporation 

By:    /s/ Russell C. Hochman
Name:    Russell C. Hochman
Title:     SVP, General Counsel
Date:     August 7, 2015

Richard E. Lundgren, Jr.  

Signature:  /s/ Richard E. Lundgren, Jr.
Date:         August 5, 2015exhibit101.htm

 

Exhibit 10.1

 

	
EXECUTION

VERSION

 

JOINDER, SUPPLEMENT AND ELEVENTH AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

This JOINDER, SUPPLEMENT AND ELEVENTH AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), is dated and effective as of August 6, 2015, by and among COVENANT TRANSPORT, INC., a Tennessee corporation (“CTI”), CTG LEASING COMPANY, a Nevada corporation (“CTGL”), SOUTHERN REFRIGERATED TRANSPORT, INC., an Arkansas corporation (“SRT”), COVENANT ASSET MANAGEMENT, LLC, a Nevada limited liability company (“CAM”), COVENANT TRANSPORT SOLUTIONS, INC., a Nevada corporation (“CTS”), and STAR TRANSPORTATION, INC., a Tennessee corporation (“ST”, and together with CTI, CTGL, SRT, CAM, and CTS, individually, a “Borrower” and collectively, “Borrowers”), COVENANT TRANSPORTATION GROUP, INC., a Nevada corporation and the owner (directly or indirectly) of all of the issued and outstanding capital stock of Borrowers (“Parent”), DRIVEN ANALYTIC SOLUTIONS, LLC, a Nevada limited liability company (“DAS”), and COVENANT PROPERTIES, LLC, a Nevada limited liability company (“CPI”, and together with DAS, individually a “New Guarantor” and collectively, “New Guarantors”), the Lenders (defined below) party to this Amendment, and BANK OF AMERICA, N.A., a national banking association, as agent for Lenders (in such capacity, “Agent”).  Capitalized terms used but not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (defined below).

R E C I T A L S:

A.           The Borrowers, the Parent, the lenders from time to time party thereto (the “Lenders”) and the Agent are parties to that certain Third Amended and Restated Credit Agreement, dated as of September 23, 2008 (as previously amended, as amended hereby and as otherwise amended, restated or modified from time to time, the “Credit Agreement”);

B.           The Parent has executed that certain Third Amended and Restated Parent Guaranty Agreement dated as of September 23, 2008 (as amended to the date hereof, the “Parent Guaranty”);

C.           The Obligors have informed the Agent and the Lenders that (i) CTS has formed DAS and (ii) CTI has formed CPI;

D.           A condition to the Lenders’ willingness to continue to make loans or otherwise extend financial accommodations to the Borrowers and for the Agent to continue to perform its duties as “Agent” is, among other items, the joinder of New Guarantors to the Credit Agreement; and

E.           The Borrowers, the Parent, the Lenders and the Agent desire that the Credit Agreement be amended in certain respects in accordance with the terms of this Amendment.

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the Credit Agreement is hereby amended and the parties hereto covenant and agree as follows:

 

  

  

  

1.           Recitals.  The foregoing Recitals are accurate and are incorporated herein and made a part hereof for all purposes.

 

2.           Addition of New Guarantors as Obligors.  By its execution and delivery of this Amendment, its Guaranty and the other Loan Documents listed in Section 8(a)(ii)(A) of this Amendment, each New Guarantor (a) acknowledges and agrees that, as of the Amendment Effective Date (defined below), it is a “Guarantor” and “Obligor” under the Credit Agreement and the other Loan Documents with the same force and effect as if originally named therein as a “Guarantor” and “Obligor”, (b) covenants with the Agent and the Lenders that it will observe and perform the terms and provisions of the Credit Agreement and the other Loan Documents to the same extent as if it were an original party thereto, and (c) confirms that it has received a copy of the Credit Agreement and the other Loan Documents.  The parties hereto agree that each reference in the Credit Agreement and the other Loan Documents, including this Amendment, to “Guarantor,” “Guarantors,” “Obligor,” and “Obligors” or terms of similar import shall be deemed to include New Guarantors.

 

3.           Grant of a Security Interest.

 

(a)           To secure the prompt payment and performance of all Obligations, each New Guarantor hereby grants to the Agent, for the benefit of the Secured Parties, a continuing security interest in and Lien upon all Property (other than Excluded Assets) of such New Guarantor, including all of the following Property, whether now owned or hereafter acquired, and wherever located:

 

	 	(i)	 	all Accounts;
	 	 	 	 
	 	(ii)	 	all Chattel Paper, including electronic chattel paper;
	 	 	 	 
	 	(iii)	 	all Commercial Tort Claims;
	 	 	 	 
	 	(iv)	 	all Deposit Accounts;
	 	 	 	 
	 	(v)	 	all Documents;
	 	 	 	 
	 	(vi)	 	all General Intangibles, including Intellectual Property;
	 	 	 	 
	 	(vii)	 	all Goods, including Inventory, Equipment and fixtures;
	 	 	 	 
	 	(viii)	 	all Instruments;
	 	 	 	 
	 	(ix)	 	all Investment Property;
	 	 	 	 
	 	(x)	 	all Letter-of-Credit Rights;
	 	 	 	 
	 	(xi) 	 	all Supporting Obligations;
	 	 	 	 
	 	(xii)	 	all cash and other monies, whether or not in the possession or under the control of the Agent, a Lender, or a bailee or Affiliate of the Agent or a Lender, including any Cash Collateral;

 

  

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(xiii)

 

	 	all accessions to, substitutions for, and all replacements, products, and cash and non-cash proceeds of the foregoing, including proceeds of and unearned premiums with respect to insurance policies, and claims against any Person for loss, damage or destruction of any Collateral; and
	 	 	 	 
	 	(xiv)	 	all books and records (including customer lists, files, correspondence, tapes, computer programs, print-outs and computer records) pertaining to the foregoing.

           

(b)           To further secure the prompt payment and performance of all Obligations, each New Guarantor hereby grants to the Agent, for the benefit of the Secured Parties:

 

(i)           a continuing security interest in and Lien upon all amounts credited to any Deposit Account of such New Guarantor, including any sums in any blocked or lockbox accounts or in any accounts into which such sums are swept; and

 

(ii)          a continuing security interest in and Lien upon all Cash Collateral held from time to time and all proceeds thereof whether such Cash Collateral is held in a Cash Collateral Account or elsewhere.

 

4.           Amendments to Credit Agreement.  Subject to the terms and conditions set forth herein, the Credit Agreement is hereby amended as follows:

 

(a)           Certain Amended Definitions.  The following definitions in Section 1.1 of the Credit Agreement are hereby added or amended and restated, as applicable, to read in their entirety as follows:

 

“Applicable Margin: with respect to any Type of Loan, the margins set forth below, as determined by the Average Pricing Availability for the most recently ended Fiscal Quarter:

 

	
Level

	 	
Average Pricing Availability

	 	
Base Rate Loans

	 	
LIBOR Loans

	
I

	 	
>$40,000,000

	 	
0.50%

	 	
1.50%

	
II

	 	
≤$40,000,000 but >$20,000,000

	 	
0.75%

	 	
1.75%

	
III

	 	
≤$20,000,000

	 	
1.00%

	 	
2.00%

 

Commencing effective August 1, 2015, margins shall be determined as if Level I were applicable.  Commencing on October 1, 2015, and continuing on the first day of each Fiscal Quarter thereafter, the margins shall be subject to increase or decrease based upon the Agent’s determination of Average Pricing Availability for the most recently ended Fiscal Quarter, with any such change to be effective on the first day of the Fiscal Quarter.  Notwithstanding the foregoing, if, by the first day of a month, any financial statements and Compliance Certificate due in the preceding month have not been received, then the margins shall be determined as if Level III were applicable, from such day until the first day of the calendar month following actual receipt.”

 

  

3

  

 

“Eleventh Amendment: that certain Joinder, Supplement and Eleventh Amendment to Third Amended and Restated Credit Agreement, dated as of the Eleventh Amendment Date, by and among Borrowers, Parent, the other Obligors party thereto, the Lenders party thereto and Agent.”

“Eleventh Amendment Date:  August 6, 2015.”

“First Tennessee Swap Account: the Deposit Account maintained by CAM with First Tennessee Bank National Association (“FTB”) that is pledged as security for Hedging Obligations owing to FTB incurred solely in connection with the Permitted Debt referenced in Section 10.2.1(o) hereof.”

“Fixed Charge Coverage Ratio: the ratio, determined on a consolidated basis for Parent and its Subsidiaries for the Measurement Period immediately preceding the date of determination, of (a) (i) for any period between March 1, 2009 and December 31, 2009, EBITDAR minus Capital Expenditures other than Financed Capital Expenditures, plus the sum of $3,000,000, or (ii) for any other period, EBITDAR minus Capital Expenditures other than Financed Capital Expenditures, to (b) Fixed Charges for such period.”

“Headquarters Deed of Trust: that certain Deed of Trust, Assignment of Rents and Leases, Security Agreement and Fixture Filing dated on or about the Eleventh Amendment Date, by CAM, to and in favor of First Tennessee Bank National Association, and the trustee named therein, securing the Permitted Debt referenced in Section 10.2.1(o) hereof.”

 

“Headquarters Repurchase: CAM’s purchase of Real Estate known as the “corporate headquarters property located at 400 Birmingham Highway in Chattanooga, Tennessee.””

“Permitted Distributions: (a) Upstream Payments, (b) the Distribution by CTI and SRT of their Equity Interests in CVTI Receivables to Parent to facilitate the merger of CVTI Receivables with and into Parent, (c) Permitted Stock Repurchases, (d) Permitted Stock Distributions, and (e) purchases or other acquisitions of any Equity Interest that do not constitute Restricted Investments and are otherwise permitted under this Agreement; provided, that no Default or Event of Default exists immediately prior to or would result directly or indirectly from any of the foregoing Distributions.”

“Permitted Stock Distribution: any distribution of Equity Interests of Parent to the stockholders of Parent in connection with a stock split, together with the distribution of cash solely to the extent such cash distribution is necessary to avoid the distribution of fractional shares.”

  

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“Permitted Stock Repurchases: the repurchase of any outstanding Equity Interests held by the public stockholders of Parent; provided that for any repurchase (i) after giving effect to such repurchase, the aggregate amount of all such repurchases during the term hereof does not exceed $12,500,000, (ii) after giving effect to such repurchase, Availability is greater than the greater of 25% of the Revolver Commitment or $23,750,000 (after giving effect to the Availability Block), and (iii) Average Availability is greater than the greater of 25% of the Revolver Commitment or $23,750,000 (after giving effect to the Availability Block) for the sixty (60) day period immediately preceding such repurchase.”

“Restricted Investment: any Investment by an Obligor or a Subsidiary of an Obligor, other than (a) Investments in Subsidiaries to the extent existing on the Closing Date or as approved by the Required Lenders after the Closing Date; (b) Cash Equivalents that are subject to Agent’s Lien and control, pursuant to documentation in form and substance satisfactory to Agent; (c) Investments in any new Subsidiary created in accordance with the provisions of Section 10.2.9; (d) loans and advances permitted under Section 10.2.6; (e) Permitted Stock Repurchases; (f) the purchase (in one or more transactions) by Parent or any of the Obligors of up to the remaining 51% of Equity Interests not owned by them in, or all or any substantial portion of the assets of, Transport Enterprise Leasing, LLC and/or the proprietorship known as TE (the “TEL Transaction”), provided that (i) the aggregate purchase price payable in cash at the closing of such transaction is not greater than $22,000,000, (ii) after giving effect to such payment, Availability is greater than the greater of 25% of the Revolver Commitment or $23,750,000 (after giving effect to the Availability Block), (iii) Average Availability is greater than the greater of 25% of the Revolver Commitment or $23,750,000 (after giving effect to the Availability Block) for the sixty (60) day period immediately preceding such payment, (iv) at the time of, and after giving effect to, each payment of the purchase price (whether or not at the closing of such transaction), no Default or Event of Default exists arising out of any of Sections 11.1(a), 11.1(c) (with respect to a failure to perform any covenant contained in Section 10.1.2 or 10.3), 11.1(j) or 11.1(k); (v) if an acquisition of Equity Interests, the provisions of Section 10.1.9 are complied with, and (vi) if an acquisition of assets, Obligors take all such actions as Agent shall deem necessary to perfect or maintain the perfection or priority of the Lien of the Agent (for the benefit of Secured Parties) upon such assets (other than Excluded Assets); and (g) the completion by Parent or any of the Obligors (or a Subsidiary of an Obligor that becomes an Obligor in accordance with Section 10.1.9) of the Headquarters Repurchase, provided that the aggregate purchase price, excluding closing costs and related expenses, is not greater than $37,000,000; provided, however, that with respect any Investment under clause (c) or (e) above, no Default or Event of Default exists immediately prior to or would result directly or indirectly from such Investment.”

 

“Revolver Termination Date:  September 23, 2018.”

 

“TEL Transaction: as defined in the definition of Restricted Investment.”

 

  

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“Unused Line Fee:  Commencing effective July 1, 2015, a fee equal to the product of (a) 0.250% per annum, times (b) the average daily amount by which the Revolver Commitments exceed the outstanding principal amount of all Revolver Loans and aggregate undrawn amount of all outstanding Letters of Credit during any month (or such shorter period if calculated on the Commitment Termination Date).”

 

(b)           Amendment to Definition of Eligible Real Estate: The first sentence of the definition of “Eligible Real Estate” in Section 1.1 of the Credit Agreement is hereby amended by inserting “and the Obligor holding title thereto” after “approved by all of the Lenders”.

 

(c)           Amendment to Definition of Excluded Assets:

 

(i)           Clause “(b)” of the definition of “Excluded Assets” in Section 1.1 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

“(b)(i) any interest in Real Estate that does not constitute Eligible Real Estate or that constitutes a leasehold interest of any Obligor, (ii) any fixtures on Real Estate that does not constitute Eligible Real Estate, and (iii) Property of CAM in which CAM has granted a Lien pursuant to the Headquarters Deed of Trust (as in effect on the Eleventh Amendment Date) to secure the Permitted Debt referenced in Section 10.2.1(o);”

 

(ii)           The definition of “Excluded Assets” in Section 1.1 of the Credit Agreement is further amended by amending and restating the last sentence thereof in its entirety to read as follows:

 

“Notwithstanding the foregoing, Excluded Assets shall not exclude Agent’s security interest in any products or proceeds of any Excluded Assets unless (i) such products or proceeds are themselves Excluded Assets or (ii) such products or proceeds are from Property that was pledged as security for the Permitted Debt referenced in Section 10.2.1(o) and have also been pledged as security for such Debt.”

 

(d)           Amendment to Section 8.1.  Section 8.1 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“8.1           Borrowing Base Certificates.  On or before the 15th day of each month, and at such other times as Agent may request, Borrowers shall deliver to Agent (and Agent shall promptly deliver same to Lenders) a Borrowing Base Certificate prepared as of the close of business on the last Business Day of the preceding month; provided, however, that if a Default or Event of Default has occurred and is continuing, or Availability is less than or equal to the greater of 15% of the Revolver Commitment or $14,250,000 (after giving effect to the Availability Block), on any day in any week during the term hereof, then on or before the close of business on the Tuesday following such week, Borrowers shall deliver to Agent (and Agent shall promptly deliver same to Lenders) a 

 

  

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Borrowing Base Certificate prepared as of the close of business for the preceding Friday, and a weekly Borrowing Base Certificate shall continue to be delivered on the Tuesday of each week thereafter until the daily Availability averages in excess of the greater of 15% of the Revolver Commitment or $14,250,000 (after giving effect to the Availability Block) for 90 consecutive days.  All calculations of Availability in any Borrowing Base Certificate shall originally be made by Borrowers and certified by a Senior Officer, provided that Agent may from time to time review and adjust any such calculation (a) to reflect its reasonable estimate of declines in value of any Collateral, due to collections received in the Dominion Account or otherwise; (b) to adjust advance rates to reflect changes in dilution, quality, mix and other factors affecting Collateral; and (c) to the extent the calculation is not made in accordance with this Agreement or does not accurately reflect the Availability Reserve or to otherwise reflect changes in the Availability Reserve.”

 

(e)         Amendment to Section 10.1.1(b).  Section 10.1.1(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(b)           Reimburse Agent for all charges, costs and expenses of Agent in connection with:

 

(i)      up to one field examination of any Obligor’s books and records or any other financial or Collateral matters as Agent deems appropriate per Loan Year; provided, however, that if an examination is initiated (A) during the continuance of a Default or Event of Default, or (B) when either (I) Availability is less than or equal to the greater of 15% of the Revolver Commitment or $14,250,000 (after giving effect to the Availability Block), or (II) the Fixed Charge Coverage Ratio is as of any date of determination (for the avoidance of doubt, regardless of whether the Borrowers are, as of such date, required to comply with Section 10.3) less than 1.0 to 1.0, then each Obligor shall, and shall cause each Subsidiary to, reimburse Agent for all charges, costs and expenses of Agent in connection with all field examinations of any Obligor’s books and records or any other financial or Collateral matters as Agent deems appropriate, notwithstanding any other  limitation set forth herein;

 

(ii)      up to two appraisals of Pledged Equipment per Loan Year; provided, however, that if an appraisal is initiated (A) during the continuance of a Default or Event of Default, or (B) when Availability is less than or equal to the greater of 15% of the Revolver Commitment or $14,250,000 (after giving effect to the Availability Block), then each Obligor shall, and shall cause each Subsidiary to, reimburse Agent for all charges, costs and expenses of Agent in connection with up to three full appraisals of Pledged Equipment per Loan Year, notwithstanding any other  limitation set forth herein; and

 

  

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(iii)    up to one appraisal of Real Estate per Loan Year; provided, however, that if an appraisal is initiated (A) during the continuance of a Default or Event of Default, or (B) when Availability is less than or equal to the greater of 25% of the Revolver Commitment or $23,750,000 (after giving effect to the Availability Block), then each Obligor shall, and shall cause each Subsidiary to, reimburse Agent for all charges, costs and expenses of Agent in connection with all appraisals of Real Estate, notwithstanding any other  limitation set forth herein.

 

Subject to and without limiting the foregoing, Borrowers specifically agree to pay Agent’s then standard charges for each day that an employee of Agent or its Affiliates is engaged in any examination activities, and shall pay the standard charges of Agent’s internal appraisal group.  This Section shall not be construed to limit Agent’s right to conduct examinations or to obtain appraisals at any time in its discretion, nor to use third parties for such purposes.”

 

(f)         Amendment to Section 10.1.9.  Section 10.1.9 of the Credit Agreement is hereby amended by adding “(or if Agent elects, as a Guarantor hereunder)” immediately following “cause it to join this Agreement as a Borrower hereunder”.

 

(g)        Amendments to Section 10.2.1.

 

(a)           Section 10.2.1(j) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(j)          At any time, Debt secured by any Revenue Equipment, computer equipment, or Real Estate that is not Collateral after giving effect to the incurrence of such Debt, provided the aggregate amount of all such Debt does not exceed $320,000,000;”

 

(b)           Section 10.2.1 of the Credit Agreement is hereby further amended by (i) deleting the language “and” appearing at the end of Section 10.2.1(m), (ii) deleting the “.” appearing at the end of Section 10.2.1(n) and substituting in lieu thereof the language “; and” and (iii) inserting the following new Section 10.2.1(o) to read in its entirety as follows:

 

“(o)         Debt secured by Real Estate known as the “corporate headquarters property located at 400 Birmingham Highway in Chattanooga, Tennessee”; provided that the aggregate amount of such Debt (excluding Debt constituting Obligations) does not exceed $35,000,000 and the initial term of such Debt is at least 5 years with a minimum 10-year amortization.”

 

(h)        Amendment to Section 10.2.2.  Section 10.2.2(r) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(r)      other Liens on Excluded Assets securing Debt permitted under Section 10.2.1(i), (m), and (o);”

 

(i)         Amendment to Section 10.2.5.  Section 10.2.5 of the Credit Agreement is hereby amended by adding the following to the end thereof:

 

  

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“Notwithstanding anything to the contrary in this Section 10.2.5, a transfer of Property between or among Obligors shall be permitted so long as Obligors take such actions as requested by Agent from time to time as Agent deems necessary to perfect or maintain the perfection or priority of the Lien of Agent in such Property (other than Excluded Assets),”

 

(j)         Amendment to Section 10.2.15.  Section 10.2.15 of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“10.2.15  Conduct of Business. Engage in any business, other than its business (or the business of the other Obligors) as conducted on the Closing Date, businesses reasonably related thereto, and any activities incidental thereto.”

 

5.           Conditional Amendments to Credit Agreement.  Subject to the terms and conditions set forth herein, including, without limitation, satisfaction of each of the conditions set forth in Sections 8 and 9 of this Amendment, the Credit Agreement will be automatically amended on the Conditional Amendments Effective Date (as defined below), if the Conditional Amendments Effective Date occurs, as follows (such amendments, the “Conditional Amendments”):

 

(a)           Amended Definitions.  The following definitions in Section 1.1 of the Credit Agreement are hereby amended and restated or added, as applicable, to read in their entirety as follows:

 

“Conditional Amendments Effective Date: shall have the meaning given such term in the Eleventh Amendment.”

“Real Estate Amortization Amount: the product of (a) $13,818,000 and (b) 1/84.”

“Real Estate Formula Amount: an amount equal to the lesser of (a) $13,818,000, as such sum shall be reduced on the first day of each month in an amount equal to the Real Estate Amortization Amount, with such reductions commencing on the first day of the month following the occurrence of the Conditional Amendments Effective Date; or (b) 75% of the Value of Eligible Real Estate.”

(b)           Amendment to Schedule 7.3.  Schedule 7.3 to the Credit Agreement is hereby deleted and the attached Schedule 7.3 is hereby inserted in place thereof and in substitution therefor.

 

6.           Waiver; Extension to Delivery Date; Additional Covenant Regarding Merger of SPE.  Notwithstanding anything to the contrary contained in Section 10.1.9 of the Credit Agreement and that certain Ninth Amendment to Third Amended and Restated Credit Agreement and Related Security Documents dated as of August 6, 2014 (the “Ninth Amendment”), effective as of February 2, 2015, Agent and Lenders hereby: (a) subject to the last sentence of this Section 6, waive any Default or Event of Default directly resulting from the failure to join Star Properties Exchange, LLC (“SPE”) as an Obligor within the period required 

 

  

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by Section 10.1.9 of the Credit Agreement, and (b) extend the date by which SPE shall transfer to a Borrower the TN Property (as defined in the Ninth Amendment) and such Borrower shall deliver to Agent a Mortgage and the Related Real Estate Documents in respect thereof, through and including the date that is one hundred twenty (120) days from the Amendment Effective Date (or such later date as Borrowers shall request in writing, but in any event not more than one hundred eighty (180) days from the Amendment Effective Date).  Agent and Lenders acknowledge and agree that such transfer may occur by virtue of SPE merging with and into a Borrower, with the Borrower being the surviving entity.  To induce Agent and Lenders to grant the waiver described in the preceding clause (a), the Obligors covenant and agree (i) to cause SPE to be merged with and into a Borrower, with the Borrower being the surviving entity, on or before forty-five (45) days after the Amendment Effective Date, and (ii) until the date of the such merger, SPE shall not own any material assets other than the TN Property, shall have no material liabilities, and shall not incur any Debt or Liens on any of its Property.

 

7.           Consent; Waivers.

 

(a)           The Obligors have advised the Agent and the Lenders of each of the following contemplated transactions:

 

(i)           A forward stock split of Parent’s common stock effected through a Distribution of Parent’s common stock to Parent’s stockholders, together with the Distribution of cash in lieu of fractional shares, and an amendment to Parent’s articles of incorporation to increase the number of authorized shares of capital stock in connection therewith (the “Stock Split”).  Section 10.2.10 of the Credit Agreement restricts any Obligor from amending its Organic Documents in any manner materially adverse to the Agent and the Lenders.  In addition, prior to giving effect to this Amendment, Section 10.2.3 restricts the making of certain Distributions contemplated by the Stock Split.  The Obligors have requested that the Agent and the Lenders consent to the Stock Split, notwithstanding Sections10.2.3 and 10.2.10 of the Credit Agreement.

 

(ii)          The completion of the TEL Transaction.  Prior to giving effect to this Amendment, the acquisition of Equity Interests or assets as contemplated by the TEL Transaction is subject to restrictions set forth in the definition of Restricted Investment and Section 10.2.4 of the Credit Agreement.  Section 10.2.1 of the Credit Agreement further restricts an Obligor from incurring Debt of the type contemplated by the deferred payment price obligations under the TEL Transaction.  The Obligors have requested that the Agent and the Lenders consent to the TEL Transaction notwithstanding Sections 10.2.1 and 10.2.4 of the Credit Agreement.

 

(iii)         The completion of the Headquarters Repurchase and incurrence of Debt secured by a Lien in connection therewith.  Prior to giving effect to this Amendment, Section 10.2.1 of the Credit Agreement prohibits the Obligors from incurring Debt of the type contemplated by the Headquarters Repurchase and Section 10.2.2 prohibits the Obligors from incurring Liens in respect of such Debt.  The Obligors have requested that the Agent and the Lenders consent to the Headquarters Repurchase notwithstanding Sections 10.2.1 and 10.2.2 of the Credit Agreement.

 

  

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(iv)         The formation of DAS as a new Subsidiary of CTS and the transfer of certain Intellectual Property and other assets from one or more Obligors to DAS (the “DAS Transactions”).  Section 10.2.9 of the Credit Agreement restricts the Obligors from creating any new Subsidiary unless the provisions of Section 10.1.9 have been satisfied. In addition, Section 10.2.5 of the Credit Agreement restricts an Obligor from making certain transfers of Intellectual Property.  The Obligors have requested that the Agent and the Lenders consent to the DAS Transactions notwithstanding Sections 10.2.5 and 10.2.9 of the Credit Agreement.

 

The Stock Split, TEL Transaction, Headquarters Repurchase, and DAS Transactions, together with the related transactions specifically described in Section 7(a) hereof, are collectively referred to herein as the “Contemplated Transactions.”

 

(b)           Notwithstanding the restrictions referenced in Section 7(a) hereof, each of the Agent and Lenders hereby consents to each of the Contemplated Transactions, waives any notice thereof that may be required under the Credit Agreement, and waives any Default or Event of Default under the Credit Agreement that may result directly from the agreement to consummate or consummation of the Contemplated Transactions, provided that the following conditions are satisfied with respect to the applicable Contemplated Transaction:

 

(i)           With respect to the Stock Split, (A) the Parent provides the Agent notice of the Stock Split not less than ten (10) days prior to the consummation thereof, (B) the Parent delivers to the Agent a certified copy of the Parent’s Organic Documents giving effect to the contemplated amendment thereto promptly after the filing thereof with the applicable Governmental Authority, and (C) the Stock Split otherwise complies with the requirements in the definition of “Permitted Distributions” after giving effect to this Amendment.

 

(ii)          With respect to the TEL Transaction, the Obligors (A) consummate the TEL Transaction in accordance with the requirements set forth in clause “(f)” of the definition of Restricted Investment and (B) repay in full at the closing of such transaction all Debt associated with the acquisition of Equity Interests or assets that would not otherwise constitute Permitted Debt immediately after such closing.

 

 (iii)        With respect to the Headquarters Repurchase, the Debt incurred in connection therewith complies with Section 10.2.1(o) of the Credit Agreement and the Lien related thereto complies with Section 10.2.2(r) of the Credit Agreement.

 

(iv)         With respect to the DAS Transactions, DAS shall have satisfied each of the conditions set forth in Section 8(a)(ii)(A) of this Amendment.

 

(c)           Following the TEL Transaction in accordance with the consent provided herein and clause (f) of the definition of Restricted Investment, the business of Transport Enterprise Leasing, LLC and/or the proprietorship known as TE (including the purchase, sale, leasing, financing, and other dealing in Revenue Equipment both with owner-operators leased to the Parent and its Subsidiaries and with third parties in the manner currently conducted or reasonably related thereto), in each case as of the Amendment Effective Date, shall not be deemed to violate Sections 10.2.4, 10.2.5, 10.2.6, or 10.2.15 of the Credit Agreement.

 

  

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8.           Effectiveness; Conditions Precedent.  The amendments herein provided (other than the Conditional Amendments) shall be effective as of the date set forth above (the “Amendment Effective Date”) upon the satisfaction of the following conditions precedent:

 

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

 

(i)           one or more counterparts of this Amendment, duly executed by each of the Borrowers, the Parent, the New Guarantors and the Required Lenders;

 

(ii)          each of the following documents, certificates and instruments in respect of each New Guarantor:

 

(A)          Copies of the articles of organization, certified by the Secretary of State or other appropriate officials of such New Guarantor’s state of organization, and copies of all other Organic Documents, together with all amendments thereto, and certified copies of resolutions of such New Guarantor’s managers, duly authorizing and empowering such New Guarantor to enter into, execute, deliver and perform this Agree­ment, its Guaranty and each of the other Loan Documents to which it is a party;

 

(B)           Good standing certificates for such New Guarantor issued by the Secretary of State or other appropriate official of such New Guarantor’s state of organization and each jurisdiction where the conduct of such New Guarantor’s business activities or ownership of its Property necessitates qualification;

 

(C)           a Guaranty, duly executed by such New Guarantor; and

 

(iii)           a supplement to the Pledge Agreement with respect to each New Guarantor’s Equity Interests owned by CTS or CTI as applicable, and the Equity Interests of SPE owned by ST, duly executed by CTS, CTI, ST, and each other Person party to the Pledge Agreement; and

 

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

 

(b)           An amendment fee in the amount of $118,750 shall have been paid to the Agent, for the pro rata benefit of the Lenders party hereto, which fee shall be fully earned and non-refundable upon payment.  Agent shall notify Parent once the foregoing conditions have been satisfied.

 

  

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9.           Additional Conditions Precedent to Effectiveness of Conditional Amendments. The Conditional Amendments shall become effective solely to the extent that, within one hundred twenty (120) days from the Amendment Effective Date (or such later date as Borrowers shall request in writing, but in any event not more than one hundred eighty (180) days from the Amendment Effective Date), with respect to each parcel of Real Estate specified on Schedule 7.3 attached hereto, (a) to the extent not already executed, delivered and recorded prior to the Amendment Effective Date, the Obligors shall have executed, delivered and recorded a Mortgage sufficient to create a first priority Lien in favor of Agent on such parcel of Real Estate, and (b) the Obligors shall have delivered all Real Estate Related Documents related to such parcel of Real Estate, including, without limitation, (i) updated or initial, as applicable, appraisals, prepared by an appraiser reasonably acceptable to Agent, and in form and substance reasonably satisfactory to Required Lenders, and (ii) an environmental assessment, prepared by environmental engineers reasonably acceptable to Agent, and accompanied by such reports, certificates, studies or data as Agent may reasonably require, which shall all be in form and substance reasonably satisfactory to the Agent and the Required Lender (the date, if any, on which each of such conditions precedent is satisfied, the “Conditional Amendments Effective Date”).  Agent shall notify Parent once the foregoing conditions have been satisfied.

 

10.         Additional Covenant Regarding Disclosure Schedules.  To induce the Agent and the Lenders to enter into this Amendment, the Obligors covenant and agree to deliver to Agent, no later than thirty (30) days after the Amendment Effective Date, supplements to the Schedules to the Credit Agreement to reflect any changes contained thereon.

 

11.         Acknowledgment of the Obligors.  The Borrowers and Parent, as Obligors, hereby acknowledge and agree that, to the best of their knowledge: (a) none of the Obligors has any defense, offset, or counterclaim with respect to the payment of any sum owed to the Lenders or the Agent under the Loan Documents, or with respect to the performance or observance of any warranty or covenant contained in the Credit Agreement or any of the other Loan Documents; and (b) the Lenders and the Agent have performed all obligations and duties owed to the Obligors through the date of this Amendment.

 

12.         Consent and Reaffirmation of Parent Guaranty. Parent hereby consents, acknowledges and agrees to the amendments set forth herein and hereby confirms and ratifies in all respects the Parent Guaranty to which Parent is a party (including, without limitation, the continuation of Parent’s payment and performance obligations thereunder upon and after the effectiveness of this Amendment and the amendments contemplated hereby, both on the Amendment Effective Date and, if such date ever occurs, the Conditional Amendment Effective Date) and the enforceability of the Parent Guaranty against the Parent in accordance with its terms.

 

13.         Representations and Warranties of the Obligors.  The Borrowers and Parent, as Obligors, represent and warrant to the Lenders and the Agent that:

 

(a)       Compliance with Credit Agreement.  On the date hereof, and after giving effect to this Amendment, no Default or Event of Default has occurred and is continuing;

 

(b)       Representations and Warranties.  On the date hereof, and after giving effect to this Amendment, the representations and warranties of each Obligor in the Loan Documents are true and correct in all material respects (except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date);

 

  

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(c)       Power and Authority.  Each Obligor is duly authorized to execute, deliver and perform this Amendment.  The execution, delivery and performance of this Amendment and the Credit Agreement, as amended hereby, have been duly authorized by all necessary action, and do not: (i) require any consent or approval of the holders of Equity Interests of the Obligors, other than those already obtained; (ii) contravene the Organic Documents of any Obligor; (iii) violate or cause a default under any Applicable Law, Material Contract or Material License; or (iv) result in or require the imposition of any Lien (other than Permitted Liens) on any Property of any Obligor; and

 

(d)       Enforceability.  This Amendment and the Credit Agreement, as amended hereby, are legal, valid and binding obligations of each Obligor, enforceable in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.

 

14.           Effect on Credit Agreement.  Except as specifically amended hereby, the terms and provisions of the Credit Agreement and the other Loan Documents are, in all other respects, ratified and confirmed and remain in full force and effect.  Except as expressly set forth herein, the amendments and other provisions hereof shall not by implication or otherwise limit, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders or the Agent under the Credit Agreement or any other Loan Document, nor shall they constitute a waiver of any Event of Default, nor shall they alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document.  Each of the amendments provided herein shall apply and be effective only with respect to the provisions of the Credit Agreement specifically referred to by such amendments.  No reference to this Amendment need be made in any notice, writing, or other communication relating to the Credit Agreement and the other Loan Documents, any such reference to the Credit Agreement and the other Loan Documents to be deemed a reference thereto as respectively amended by this Amendment.  All references to the Credit Agreement and the other Loan Documents in any document, instrument, or agreement executed in connection with the Credit Agreement and the other Loan Documents will be deemed to refer to the Credit Agreement and the other Loan Documents as respectively amended hereby.

 

15.           Instrument Pursuant to Credit Agreement.  This Amendment is a Loan Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions of the Credit Agreement.

 

16.           Further Acts.  Each of the parties to this Amendment agrees that at any time and from time to time upon the written request of any other party, it will execute and deliver such further documents and do such further acts and things as such other party may reasonably request in order to effect the purposes of this Amendment.

 

17.           Successors. This Amendment shall be binding upon and inure to the benefit of the Obligors, the Agent, the Lenders, and their respective successors and permitted assigns, except that: (a) no Obligor shall have the right to assign its rights or delegate its obligations under this Amendment or any Loan Documents; and (b) any assignment by a Lender must be made in compliance with Section 13.3 of the Credit Agreement.

 

  

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18.           Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).

 

19.           Consent to Forum; Arbitration.  EACH OBLIGOR, HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT SITTING IN OR WITH JURISDICTION OVER THE STATE OF NEW YORK, IN ANY PROCEEDING OR DISPUTE RELATING IN ANY WAY TO THIS AMENDMENT, AND AGREES THAT ANY SUCH PROCEEDING SHALL BE BROUGHT BY IT SOLELY IN ANY SUCH COURT.  EACH OBLIGOR, IRREVOCABLY WAIVES ALL CLAIMS, OBJECTIONS AND DEFENSES THAT IT MAY HAVE REGARDING SUCH COURT’S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR INCONVENIENT FORUM.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 14.3.1 OF THE CREDIT AGREEMENT.  Nothing herein shall limit the right of Agent or any Lender to bring proceedings against any Obligor in any other court, nor limit the right of any party to serve process in any other manner permitted by Applicable Law.  Nothing in this Amendment shall be deemed to preclude enforcement by Agent of any judgment or order obtained in any forum or jurisdiction. Notwithstanding the foregoing, Section 14.14 of the Credit Agreement is incorporated herein by reference and shall apply to this Amendment.

 

20.           Counterparts.  This Amendment may be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of a signature page of any Loan Document by telecopy or electronic mail shall be as effective as delivery of a manually executed counterpart of such agreement.

 

21.           Severability.  Wherever possible, each provision of this Amendment shall be interpreted in such manner as to be valid under Applicable Law.  If any provision is found to be invalid under Applicable Law, it shall be ineffective only to the extent of such invalidity and the remaining provisions of this Amendment shall remain in full force and effect.

 

22.           Entire Agreement.  This Amendment, together with all the Loan Documents (collectively, the “Relevant Documents”), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes any prior negotiations and agreements among the parties relating to such subject matter.  No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty.  Each of the parties hereto acknowledges that, except as otherwise expressly stated in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other in relation to the subject matter hereof or thereof.  None of the terms or conditions of this Amendment may be changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 14.1 of the Credit Agreement.

 

[signatures begin on following page]

  

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.

 

	  	
BORROWERS:

	  	  
	  	
COVENANT TRANSPORT, INC.

	  	  
	  	  
	  	
By:

	/s/ Richard B. Cribbs 
	  	
Name:

	
Richard B. Cribbs

	  	
Title:

	
Senior Vice President, Chief Financial Officer, and Treasurer

	  	  
	  	  
	  	  
	  	
CTG LEASING COMPANY

SOUTHERN REFRIGERATED TRANSPORT, INC.

STAR TRANSPORTATION, INC.

COVENANT ASSET MANAGEMENT, LLC

	  	  
	  	  
	  	
By:

	/s/ Richard B. Cribbs
	  	
Name:

	
Richard B. Cribbs

	  	
Title:

	
Treasurer

	  	  
	  	  
	  	  
	  	
COVENANT TRANSPORT SOLUTIONS, INC.

	  	  
	  	  
	  	
By:

	/s/ Richard B. Cribbs
	  	
Name:

	
Richard B. Cribbs

	  	
Title:

	
Vice President and Treasurer

[signatures continued on following page]

[Joinder, Supplement and Eleventh Amendment to Third Amended and Restated Credit Agreement]

  

  

  

	  	
PARENT:

	  	  
	  	
COVENANT TRANSPORTATION GROUP, INC.

	  	  
	  	  
	  	
By:

	/s/ Richard B. Cribbs
	  	
Name:

	
Richard B. Cribbs

	  	
Title:

	
Senior Vice President and Chief Financial Officer

	  	  
	  	  
	  	
NEW GUARANTORS:

	  	  
	  	
DRIVEN ANALYTIC SOLUTIONS, LLC

	  	  
	  	
By:

	/s/ Richard B. Cribbs
	  	
Name:

	
Richard B. Cribbs

	  	
Title:

	
Vice President and Treasurer

	  	  
	  	  
	  	  
	  	
COVENANT PROPERTIES, LLC

	  	  
	  	  
	  	
By:

	/s/ Richard B. Cribbs
	  	
Name:

	
Richard B. Cribbs

	  	
Title:

	
Vice President and Secretary

[signatures continued on following page]

[Joinder, Supplement and Eleventh Amendment to Third Amended and Restated Credit Agreement]

  

  

  

	  	
AGENT AND LENDERS:

	  	  
	  	
BANK OF AMERICA, N.A.,

as Agent and Lender

	  	  
	  	  
	  	
By:

	
/s/ Douglas Cowan

	  	
Name:

	
Douglas Cowan

	  	
Title:

	
Senior Vice President

[signatures continued on following page]

[Joinder, Supplement and Eleventh Amendment to Third Amended and Restated Credit Agreement]

  

  

  

	  	
JPMORGAN CHASE BANK, N.A.

	  	  
	  	  
	  	
By:

	/s/ Rashmi Bhatt  
	  	
 

	Rashmi Bhatt  
	  	
 

	Authorized Officer  

 

[Joinder, Supplement and Eleventh Amendment to Third Amended and Restated Credit Agreement]

  

  

  

 

SCHEDULE 7.3

to

Third Amended and Restated Credit Agreement

 

ELIGIBLE REAL ESTATE

 

	
Location

	 	
Address and Zip Code

	 	
Owning Entity

	
Texarkana, Arkansas

	 	
8055 Hwy 67 N, 71854

	 	
Southern Refrigerated Transport, Inc.

	
Hutchins, Texas

	 	
1096 1-45 South, 75141

	 	
Covenant Transport, Inc.

	
Pomona, California

	 	
1300 and 1408 E. Franklin Road, 91766

	 	
Covenant Transport, Inc.

	
Allentown, Pennsylvania

	 	
4815 Crackersport Road, 18104

	 	
Covenant Transport, Inc.

	
LaVergne, Tennessee

	 	
1234 Bridgestone Parkway, 37086

	 	
Star Transportation, Inc.

 

Back to Form 10-Q

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00251-of-00352.parquet"}]]