Document:

Exhibit 10.4

 

MODIFICATION OF CREDIT AGREEMENT AND
OTHER LOAN DOCUMENTS

 

THIS MODIFICATION OF
CREDIT AGREEMENT AND OTHER LOAN DOCUMENTS (this "Agreement") is effective as of the 1st day of June, 2018, by
and among JETPAY PAYMENT SERVICES, FL, LLC, a Delaware limited liability company ("Borrower"), JETPAY
CORPORATION, a Delaware corporation ("Guarantor"), and FIFTH THIRD BANK, an Ohio banking corporation
("Lender").

 

RECITALS

 

A.       Lender
made a term loan to Borrower in the amount of One Million Six Hundred Thousand and 00/100 Dollars ($1,600,000.00) (the "Loan")
pursuant to the terms and conditions of a Credit Agreement dated as of June 22, 2017 by and between Borrower and Lender (the "Credit
Agreement"). The Loan is evidenced by a Promissory Note dated June 22, 2017 in the original principal amount of One Million
Six Hundred Thousand and 00/100 Dollars ($1,600,000.00) executed by Borrower and made payable to Lender, which note is being amended
and restated in its entirety by that certain Amended and Restated Promissory Note in the original principal amount of One Million
Six Hundred Thousand and 00/100 Dollars ($1,600,000.00) dated of even date herewith executed by Borrower and made payable to Lender
(the "Note").

 

B.       The
Loan is secured by (i) a Security Agreement dated June 22, 2017 executed by Borrower to and for the benefit of Lender (the
"Security Agreement"); (ii) a Guaranty Agreement dated June 22, 2017 executed by Guarantor in favor of Lender
(the "Guaranty"); and (iii) certain other loan documents (the Note, the Security Agreement, the Guaranty,
the Credit Agreement and the other documents evidencing, securing and guarantying the Loan, in their original form and as amended
from time to time, are sometimes collectively referred to herein as the "Loan Documents").

 

C.       Borrower
has requested that Lender modify the Loan Documents as set forth herein, and Lender has agreed to such modifications subject to
the terms and conditions herein provided.

 

NOW, THEREFORE,
in consideration of the Recitals set forth above, the agreements by Lender to modify the Credit Agreement, as provided herein,
the covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Borrower, Guarantor and Lender hereby agree as follows:

 

1.       Affirmation
of Recitals. The recitals set forth above are true and correct and are incorporated herein by this reference.

 

2.       Definitions.
Capitalized terms used but not defined in this Agreement shall have the meanings ascribed to such terms in the Credit Agreement.

 

3.       Modifications
to Loan Documents. The Loan Documents are hereby modified as follows:

 

(a)       The
following definition in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

     

     

    

 

“Draw/Term
Note” means that certain Amended and Restated Promissory Note dated of even date herewith made by Borrower to the order of
Lender in the stated principal amount of the Draw/Term Loan Amount.

 

(b)       Section
2.3 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

2.3       Principal
Payments; Maturity Date. The principal of the Loan shall be paid in the manner set forth in the Draw/Term Note. The Maturity
Date of the Draw/Term Note is September 30, 2021.

 

(c)       Section
8.1(s) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(s)       Borrower
fails to comply with the financial covenants contained in Section 6.7 or Section 6.8 of this Agreement; provided,
however, if and only if Borrower’s failure to comply with the financial covenant contained in Section 6.8 of this
Agreement is caused solely by the balance of that certain $1,000,000.00 overdraft Amended and Restated Revolving Promissory Note
made by Borrower in favor of Lender dated effective as of June 1, 2018 (as amended, restated, renewed, increased or otherwise modified
from time to time), such failure shall not be an Event of Default unless it continues unremedied for a period of ten (10) days
after Borrower obtains actual knowledge of such failure.

 

4.       Representations
and Warranties of Borrower. Borrower hereby represents, covenants and warrants to Lender as follows:

 

(a)       The
representations and warranties in the Credit Agreement and the other Loan Documents are true and correct in all material respects
as of the date hereof.

 

(b)       There
is currently no Default or Event of Default under the Loan Documents and Borrower does not have knowledge of any event or circumstance
which with the giving of notice or the passage of time, or both, would constitute an Event of Default under the Loan Documents.

 

(c)       The
Loan Documents are in full force and effect and, following the execution and delivery of this Agreement, the Loan Documents continue
to be the legal, valid and binding obligations of Borrower, enforceable in accordance with their respective terms, subject to limitations
imposed by bankruptcy, insolvency, other debtor relief laws and general principles of equity.

 

(d)       There
has been no material adverse change in the financial condition of Borrower, Guarantor or any other party whose financial statement
has been delivered to Lender in connection with the Loan from the date of the most recent financial statements received by Lender,
other than what has been disclosed in its SEC filing.

 

    2 

     

    

 

(e)       As
of the date hereof, Borrower has no claims, counterclaims, defenses or set-offs with respect to the Loan or the Loan Documents
as modified herein.

 

(f)       Borrower
validly exists under the laws of the State of its formation or organization and has the requisite power and authority to execute
and deliver this Agreement and to perform the Loan Documents as modified herein. The execution and delivery of this Agreement by
Borrower and the performance by Borrower of the Loan Documents as modified herein have been duly authorized by all requisite action
by or on behalf of Borrower. This Agreement has been duly executed and delivered on behalf of Borrower.

 

5.       Reaffirmation
of Guarantor Documents. Guarantor hereby ratifies and affirms the Guaranty and agrees that the Guaranty is in full force
and effect following the execution and delivery of this Agreement. To Guarantor's actual knowledge, the representations and warranties
of Guarantor as contained in the Guaranty are, as of the date hereof, true and correct and Guarantor does not have actual knowledge
of any default thereunder. The Guaranty continues to be the valid and binding obligation of Guarantor, enforceable in accordance
with its terms, subject to limitations imposed by bankruptcy, insolvency, other debtor relief laws and principles of equity, and
Guarantor has no claim or defense to the enforcement of the rights and remedies of Lender thereunder, except as specifically provided
otherwise in the Guaranty. The execution and delivery of this Agreement by Guarantor and the performance by Guarantor of its obligations
under the Loan Documents have been duly authorized by all requisite action by or on behalf of Guarantor. This Agreement has been
duly executed and delivered on behalf of Guarantor.

 

6.       Loan
Fees and Expenses. As a condition precedent to Lender's agreement to enter into this Agreement, Borrower hereby agrees
to pay, promptly upon request therefor, all reasonable out-of-pocket costs and expenses incurred by Lender in connection with this
Agreement, including, without limitation, reasonable attorneys’ fees and expenses.

 

7.       Release
of Claims. Borrower, Guarantor and any other obligors, on behalf of themselves and their respective successors and assigns
(collectively and individually, "Borrower Parties"), hereby fully, finally and completely RELEASE AND FOREVER
DISCHARGE  Lender and its successors, assigns, affiliates, subsidiaries, parents, officers, shareholders, directors, employees,
servicers, attorneys, agents and properties, past, present and future, and their respective heirs, successors and assigns (collectively
and individually, "Lender Parties"), of and from any and all claims, controversies, disputes, liabilities, obligations,
demands, damages, debts, liens, actions and causes of action of any and every nature whatsoever, known or unknown, whether at law,
by statute or in equity, in contract or in tort, under state or federal jurisdiction, and whether or not the economic effects of
such alleged matters arise or are discovered in the future, which Borrower Parties have as of the date of this Agreement or may
claim to have against Lender Parties arising out of or with respect to any and all transactions relating to the Loan or the Loan
Documents occurring on or before the date of this Agreement, including any loss, cost or damage of any kind or character arising
out of or in any way connected with or in any way resulting from the acts, actions or omissions of Lender Parties occurring on
or before the date of this Agreement.  The foregoing release is intended to be, and is, a full, complete and general release
in favor of Lender Parties with respect to all claims, demands, actions, causes of action and other matters described therein,
including specifically, without limitation, any claims, demands or causes of action based upon allegations of breach of fiduciary
duty, breach of any alleged duty of fair dealing in good faith, economic coercion, usury, or any other theory, cause of action,
occurrence, matter or thing which might result in liability upon Lender Parties arising or occurring on or before the date of this
Agreement.  Borrower Parties understand and agree that the foregoing general release is in consideration for the agreements
of Lender contained herein and that they will receive no further consideration for such release.

 

    3 

     

    

 

8.       Further
Assurance. Borrower and Guarantor agree in good faith to cooperate, adjust, initial, re-execute and redeliver any and all
documents including, but not limited to, any notes, loan documents, security agreements, financing statements, guarantees, deeds,
affidavits and closing statements if deemed necessary or desirable in the sole discretion of Lender in order to consummate or complete
the Loan transactions contemplated herein among Lender, Borrower and/or Guarantor, to correct errors, or to perfect Lender’s
liens or security interests.

 

9.       Miscellaneous.

 

(a)       An
Event of Default hereunder shall be an "Event of Default" under Section 8.1 of the Credit Agreement entitling Lender
to all of the remedies afforded Lender in Section 8.2 of the Credit Agreement.

 

(b)       This
Agreement shall be governed by and construed in accordance with the laws of the State of Florida without regard to its conflict
of law principles.

 

(c)       Borrower,
Guarantor and Lender acknowledge that there are no other understandings, agreements or representations, either oral or written,
express or implied, with respect to the Loan that are not embodied in the Loan Documents and this Agreement, which collectively
represent a complete integration of all prior and contemporaneous agreements and understandings of Borrower, Guarantor and Lender
with respect to the Loan; and that all such prior understandings, agreements and representations are hereby modified as set forth
in this Agreement. Except as expressly modified hereby, the terms of the Loan Documents are and remain unmodified and in full force
and effect.

 

(d)       This
Agreement shall bind and inure to the benefit of the parties hereto and their respective heirs, executors, administrators, successors
and assigns. The paragraph and section headings used herein are for convenience only and shall not limit the substantive provisions
hereof. All words herein which are expressed in the neuter gender shall be deemed to include the masculine, feminine and neuter
genders. Any word herein which is expressed in the singular or plural shall be deemed, whenever appropriate in the context, to
include the plural and the singular.

 

(e)       Any
references to the Note, the Credit Agreement or the Loan Documents, contained in any of the Loan Documents shall be deemed to refer
to the Note, the Credit Agreement and the other Loan Documents as amended hereby. This Agreement shall be deemed a "Loan Document"
and accordingly, the definition of the term "Loan Documents" appearing in the Loan Documents is hereby amended to include,
in addition to the documents already covered thereby, this Agreement.

 

(f)       This
Agreement may be executed in one or more counterparts, all of which, when taken together, shall constitute one original Agreement.

 

    4 

     

    

 

(g)       Time
is of the essence of each of Borrower's obligations under this Agreement.

 

(h)       If
one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other
provision of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never
been contained herein or therein.

 

[signature page to follow]

 

    5 

     

    

[Signature Page to Modification of Credit
Agreement and Other Loan Documents]

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the day and year first above written.

 

	 	BORROWER:	 	 
	 	 	 	 	 
	 	JETPAY PAYMENT SERVICES, FL, LLC, a 

Delaware limited liability company	 
	 	 	 	 	 
	 	By: 	JetPay Corporation, its sole member	 
	 	 	 	 	 
	 	 	By	/s/ Gregory M. Krzemien	 
	 	 	Name:	Gregory M.
Krzemien	 
	 	 	Its: 	Chief Financial Officer	 
	 	 	 	 	 
	 	GUARANTOR:	 	 
	 	 	 	 	 
	 	JETPAY CORPORATION,	 
	 	a Delaware corporation	 
	 	 	 	 	 
	 	By	/s/Gregory M. Krzemien	 
	 	Name: 	Gregory M. Krzemien	 
	 	Its: 	Chief Financial Officer	 
	 	 	 	 
	 	LENDER:	 	 
	 	 	 	 	 
	 	FIFTH THIRD BANK,	 
	 	an Ohio banking corporation	 
	 	 	 	 	 
	 	By	/s/ Brian Holliday	 
	 	Name: 	Brian Holliday	 
	 	Its: 	Vice President	 

 

 

 

    6Exhibit

Execution Version

AMENDMENT NO. 13 TO
TRANSFER AND ADMINISTRATION AGREEMENT
THIS AMENDMENT NO. 13 TO TRANSFER AND ADMINISTRATION AGREEMENT (this “Amendment”), dated as of June 1, 2018, is by and among THOROUGHBRED FUNDING, INC., a Virginia corporation (the “SPV”), NORFOLK SOUTHERN RAILWAY COMPANY, a Virginia corporation, as originator (in such capacity, the “Originator”) and as servicer (in such capacity, the “Servicer”), NORFOLK SOUTHERN CORPORATION, a Virginia corporation (“NSC”), the “Conduit Investors” party hereto, the “Committed Investors” party hereto, the “Managing Agents” party hereto, MUFG BANK, LTD. (formerly known as The Bank of Tokyo-Mitsubishi UFJ, LTD., New York Branch) (“MUFG”), as the Administrative Agent for the Investors, and CAPITAL ONE, NATIONAL ASSOCIATION (“Capital One”).  Capitalized terms used herein and not otherwise defined herein shall have the meaning given to such terms in the Transfer and Administration Agreement (defined below).

WHEREAS, the SPV, the Servicer, NSC, the Conduit Investors, the Committed Investors, the Managing Agents and the Administrative Agent are parties to that certain Transfer and Administration Agreement dated as of November 8, 2007 (as amended, supplemented or otherwise modified as of the date hereof, the “Transfer and Administration Agreement”); 
WHEREAS, Capital One wishes to join the Transfer and Administration Agreement as a Committed Investor and a Managing Agent; and
WHEREAS, the parties to the Transfer and Administration Agreement have agreed to amend the Transfer and Administration Agreement on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
Section 1.    Amendment to the Transfer and Administration Agreement.  Effective as of the date first written above and subject to the execution of this Amendment by the parties hereto and the satisfaction of the conditions precedent set forth in Section 2 below, the Transfer and Administration Agreement is hereby amended as follows:
1.1.    The definition of “Alternate Rate” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows: 
“Alternate Rate” means (i) with respect to the Investor Group for which Wells Fargo Bank, National Association is the Managing Agent, for each day during any Rate Period for any Portion of Investment, an interest rate per annum equal to LMIR for such day plus 0.675%, (ii) with respect to the Investor Group for which SMBC Nikko Securities America, Inc. is the Managing Agent, for each day during any Rate Period for any Portion of Investment, an interest rate per annum equal to LMIR for such day plus 0.675%, (iii) with respect to the Investor Group for which MUFG Bank, Ltd. is the Managing Agent, for each day during any Rate Period for any Portion of Investment, an interest rate per annum equal to the LIBO Rate for such Rate Period plus 0.675%, (iv) with respect to the Investor Group for which Capital One, National Association is the Managing Agent, for each day during any Rate Period for any Portion of Investment, an interest rate per annum equal to LMIR 

for such Rate Period plus 0.675% and (v) with respect to any other Investor Group for any Rate Period for any Portion of Investment, an interest rate per annum equal to the LIBO Rate for such Rate Period plus 2.00%.
1.2.    The definition of “Commitment Termination Date” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows:
“Commitment Termination Date” means May 31, 2019, or such later date to which the Commitment Termination Date may be extended by the Committed Investors (in their sole discretion).
1.3.    The definition of “Concentration Limit” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows:
“Concentration Limit” means, for any Obligor of any Receivable, at any time, (i) if such Obligor has a short-term debt rating from at least one of Moody’s or S&P at such time, the applicable percentage set forth below corresponding to such rating (or, if such Obligor has a short-term debt rating from both of Moody’s and S&P at such time, corresponding to the lower of such ratings); (ii) if such Obligor does not have a short-term debt rating from either Moody’s or S&P at such time but has a long-term debt rating from at least one of Moody’s or S&P at such time, the applicable percentage set forth below corresponding to such rating  (or, if such Obligor has a long-term debt rating from both of Moody’s and S&P at such time, corresponding to the lower of such ratings); and (iii) otherwise, 4.00%;
	
					
	Short-Term Rating
	Long-Term Rating
	 

	S&P Rating
	Moody’s Rating
	S&P Rating
	Moody’s Rating
	Limit

	A-1
	P-1
	A+
	A1
	16.00%

	A-2
	P-2
	BBB+
	Baa1
	16.00%

	A-3
	P-3
	BBB-
	Baa3
	8.00%

	Below A-3
	Below P-3
	Below BBB-
	Below Baa3
	4.00%

provided, that the percentages set forth above with respect to an Obligor may be increased as consented to by all of the Managing Agents in writing from time to time.

1.4.    The definition of “Dilution Reserve Floor” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows:
“Dilution Reserve Floor” means, for any calendar month, the product (expressed as a percentage), computed as of the last day of such calendar month by multiplying (a) the average Dilution Ratio for the twelve (12) most recent calendar months, by (b) the Dilution Horizon Ratio for such calendar month.

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1.5.    The definition of “Facility Limit” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows:
“Facility Limit” means, at any time, the lesser of (i) $400,000,000 and (ii) the aggregate Commitments then in effect.
1.6.    The definition of “LIBO Rate” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows:
“LIBO Rate” means (a) the London interbank offered rate as administered by ICE Benchmark Administration (or any other Person that takes over the administration of such rate) for Dollars for a period equal in length to the relevant Rate Period as published by Thomson Reuters (or by any successor to or substitute or replacement for such service, providing rate quotations comparable to those currently provided by Thomson Reuters, as determined by the Administrative Agent from time to time, for purposes of providing quotations of interest rates applicable to Dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of the relevant Rate Period, as the rate for dollar deposits with a maturity comparable to such Rate Period; provided, that, in the event that such rate is not available at such time for any reason, then the rate for the relevant Rate Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Rate Period are offered by the principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of such Rate Period, divided by (b) one (1) minus the maximum aggregate reserve requirement (including all basic, supplemental, marginal or other reserves) which is imposed against the Administrative Agent in respect of Eurocurrency liabilities, as defined in Regulation D of the Board of Governors of the Federal Reserve System as in effect from time to time (expressed as a decimal) applicable to such Rate Period; provided, further that in the event that the rate as published shall be less than zero, such rate shall be deemed to be zero for the purposes of this Agreement.
1.7.    The definition of “Loss Reserve Floor” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows:
“Loss Reserve Floor” means 16.00%.
1.8.    The definition of “Manhattan Termination Period” is hereby deleted from Section 1.1 of the Transfer and Administration Agreement in its entirety.
1.9.    The definition of “Required Reserves” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows:
“Required Reserves” at any time means the sum of (a) the Net Pool Balance multiplied by the Reserve Percentage, plus (b) the Servicing Fee Reserve, plus (c) the Yield Reserve.
1.10.    The definition of “Reserve Percentage” is hereby added to Section 1.1 of the Transfer and Administration Agreement in appropriate alphabetical order therein to read as follows:
“Reserve Percentage” at any time means the greater of (x) the sum of (i) the Dilution Reserve Floor plus (ii) the Loss Reserve Floor and (y) the sum of (i) the Loss Reserve Ratio plus (ii) the Dilution Reserve Ratio.

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1.11.    The definition of “Yield Payment Date” set forth in Section 1.1 of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows:
“Yield Payment Date” means with respect to any Portion of Investment as to which Yield is calculated (a) at the CP Rate, the Base Rate or the rates specified in clauses (i) or (ii) of the definition of “Alternate Rate”, each Settlement Date, or (b) at the rate specified in clauses (iii), (iv) or (v) of the definition of “Alternate Rate”, the last day of each Rate Period.
1.12.    Clause (f) of Section 2.3 of the Transfer and Administration Agreement is hereby deleted in its entirety.
1.13.    Schedule II of the Transfer and Administration Agreement is hereby amended and restated in its entirety as set forth on Schedule I hereto.
1.14.    Schedule IV of the Transfer and Administration Agreement is hereby amended and restated in its entirety to read as follows: “[RESERVED].”
1.15.    Schedule 11.3 of the Transfer and Administration Agreement is hereby amended and restated in its entirety as set forth on Schedule II hereto.
1.16.    Exhibit F of the Transfer and Administration Agreement is hereby amended and restated in its entirety as set forth on Schedule III hereto.
1.17.    Each reference in the Transfer and Administration Agreement and any other Transaction Document to “The Bank of Tokyo Mitsubishi UFJ, Ltd., New York Branch”, “The Bank of Tokyo Mitsubishi UFJ, Ltd.” or “BTMU” shall mean, and be a reference to, “MUFG Bank, Ltd. formerly known as “The Bank of Tokyo Mitsubishi UFJ, Ltd.”
Section 2.    Conditions Precedent.  This Amendment shall become effective as of the date hereof (the “Effective Date”) upon:
2.1.    the receipt by each of MUFG, SMBC Nikko Securities America, Inc., Wells Fargo and Capital One, each as a Managing Agent, for the account of the Investors in the related Investor Group, of the Upfront Fee specified in the Fee Letter by wire transfer of immediately available funds to the account specified for such Managing Agent in the Fee Letter; and
2.2.    the receipt by the Administrative Agent of this Amendment and that certain Fee Letter, of event date herewith (the “Fee Letter”), from each Managing Agent and acknowledged by the SPV, duly executed by the parties thereto.
Section 3.    Joinder; Termination.
3.1.    Capital One (i) confirms that it has received a copy of the Transfer and Administration Agreement and the First Tier Agreement, together with copies of the financial statements referred to in Section 6.1(a) of the Transfer and Administration Agreement, to the extent delivered through the date hereof, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Amendment; (ii) agrees that it will, independently and without reliance upon the Administrative Agent, any of its Affiliates, any other Committed Investor, Conduit Investor, or Managing Agent and based on such documents and information as it shall deem appropriate at the time, 

4

continue to make its own credit decisions in taking or not taking action under the Transfer and Administration Agreement and any other Transaction Document; (iii) (A) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Transfer and Administration Agreement and the other Transaction Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto and (B) appoints and authorizes Capital One to act as Managing Agent for the related Investor Group and to take such action as agent on its behalf and to exercise such powers and discretion under the Transfer and Administration Agreement and the other Transaction Documents as are delegated to a Managing Agent by the terms thereof, together with such powers and discretion as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the obligations which, by the terms of the Transfer and Administration Agreement, are required to be performed by it as a Committed Investor.
3.2.    Effective as of the Effective Date, (i) Capital One shall be a party to the Transfer and Administration Agreement and, to the extent provided in this Section 3, have the rights and obligations of a Committed Investor thereunder and under the other Transaction Documents, (ii) there shall be a new Investor Group consisting of Capital One as the Committed Investor and Managing Agent, (iii) each of Victory Receivables Corporation and Manhattan Asset Funding Company LLC transfers and assigns all of its Net Investment to its related Committed Investor, which hereby accepts such transfer, and thereupon Victory Receivables Corporation and Manhattan Asset Funding Company LLC automatically relinquishes its respective rights and is released from its respective obligations as Conduit Investor under the Transfer and Administration Agreement, and (iv) each of Victory Receivables Corporation and Manhattan Asset Funding Company LLC shall no longer be party to the Transfer and Administration Agreement or any of the other Transaction Documents (including, without limitation, the Fee Letter) and shall have no further rights or obligations thereunder; provided that the provisions of Article IX and Sections 11.11 and 11.12 of the Transfer and Administration Agreement shall continue in effect for its respective benefit in respect of any actions taken or omitted to be taken by it as “Conduit Investor” under the Transfer and Administration Agreement and the other Transaction Documents prior to the Effective Date.  
Section 4.    Representations and Warranties.
4.1.    (a)    Each of the SPV and the Originator hereby represents and warrants that:
(i)    This Amendment, the Transfer and Administration Agreement, as amended hereby, and the First Tier Agreement constitute legal, valid and binding obligations of such parties and are enforceable against such parties in accordance with their respective terms, except to the extent that enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles.
(ii)    Upon the effectiveness of this Amendment and after giving effect hereto, the covenants, representations and warranties of each such party, respectively, set forth in Articles IV and VI of the Transfer and Administration Agreement, as applicable, and as amended hereby, are true, complete and correct, in the case of such representations and warranties qualified by materiality, in all respects, and otherwise in all material respects on and as of the date hereof as though made on and as of the date hereof (except to the extent that such representations and warranties relate to an earlier date in which case such representations and warranties that expressly relate to an earlier date are true, correct and complete, in the case of such representations and warranties qualified by materiality, in all respects, and otherwise in all material respects, as of such earlier date).

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(b)    The SPV hereby represents and warrants that, upon the effectiveness of this Amendment, no event or circumstance has occurred and is continuing which constitutes a Termination Event or a Potential Termination Event.
Section 5.    Reference to and Effect on the Transfer and Administration Agreement.
5.1.    Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Transfer and Administration Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Transfer and Administration Agreement and its amendments, as amended hereby.
5.2.    The Transfer and Administration Agreement, as amended hereby, and all other amendments, documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.
5.3.    Except as expressly provided herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Conduit Investors, the Committed Investors, the Managing Agents or the Administrative Agent, nor constitute a waiver of any provision of the Transfer and Administration Agreement, any other Transaction Document or any other documents, instruments and agreements executed and/or delivered in connection therewith.
Section 6.    CHOICE OF LAW.      THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO THE CONFLICTS OF LAW PRINCIPLES THEREOF OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).
Section 7.    Execution of Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.  Delivery by facsimile or electronic mail (in .pdf or .tif format) of an executed signature page of this Amendment shall be effective as delivery of an executed counterpart hereof.
Section 8.    Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
[Signature pages follow.]

6

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the date first written above.

THOROUGHBRED FUNDING, INC.,
as SPV

By: _____/s/ C.H. "Jake" Allison, Jr.___________
Name:  C.H. "Jake" Allison, Jr.
Title:    Chairman and President

NORFOLK SOUTHERN RAILWAY COMPANY,
as Originator and as Servicer

By: _____/s/ C.H. "Jake" Allison, Jr.___________
Name:  C.H. "Jake" Allison, Jr.
Title:    Vice President and Treasurer

NORFOLK SOUTHERN CORPORATION

By: _____/s/ C.H. "Jake" Allison, Jr.___________
Name:  C.H. "Jake" Allison, Jr. 
Title:    Vice President and Treasurer

Signature Page to Amendment No. 13 to
Transfer and Administration Agreement

CAPITAL ONE, NATIONAL ASSOCIATION,
as a Managing Agent and a Committed Investor 

By: _______/s/ Edward Behnen_______________
Name:  Edward Behnen
Title:    Director

Signature Page to Amendment No. 13 to
Transfer and Administration Agreement

VICTORY RECEIVABLES CORPORATION,
as a Conduit Investor

By: ______/s/ Kevin Corrigan____________
Name:  Kevin Corrigan
Title:    Vice President

MUFG BANK, LTD.,
as Administrative Agent 

By: _______/s/ Luna Mills________________
Name:  Luna Mills
Title:    Managing Director

MUFG BANK, LTD.,
as a Committed Investor and a Managing Agent

By: _______/s/ Luna Mills_________________
Name:  Luna Mills
Title:    Managing Director

Signature Page to Amendment No. 13 to
Transfer and Administration Agreement

SMBC NIKKO SECURITIES AMERICA, INC.,
as a Managing Agent

By: _________/s/ Yukimi Konno___________
Name:  Yukimi Konno
Title:    Managing Director

SUMITOMO MITSUI BANKING CORPORATION,
as a Committed Investor

By: ________/s/ James D. Weinstein________
Name:  James D. Weinstein
Title:    Managing Director

MANHATTAN ASSET FUNDING COMPANY LLC,  
as a Conduit Investor

By: MAF Receivables Corp., its Member

By: ________/s/ Irina Khaimova___________
Name:  Irina Khaimova
Title:    Vice President

Signature Page to Amendment No. 13 to
Transfer and Administration Agreement

WELLS FARGO BANK, NATIONAL ASSOCIATION,
as a Managing Agent and a Committed Investor 

By: _________/s/ Isaac Washington____________
Name:  Isaac Washington
Title:    Vice President

Signature Page to Amendment No. 13 to
Transfer and Administration Agreement

Schedule I to Amendment No. 13 to 
Transfer and Administration Agreement

SCHEDULE II 
Investor Groups

MUFG Investor Group

	
				
	Conduit Investor:
	N/A
	 

	Committed Investor:
	MUFG Bank, Ltd.
	 

	Commitment:  
	$125,000,000
	 
	 

	Managing Agent:
	MUFG Bank, Ltd.
	 

SMBC Investor Group

	
				
	Conduit Investor:
	N/A
	 

	Committed Investor:
	Sumitomo Mitsui Banking Corporation
	 

	Commitment:
	$100,000,000
	 
	 

	Managing Agent:
	SMBC Nikko Securities America, Inc.
	 

Wells Fargo Investor Group

	
				
	Conduit Investor:
	N/A
	 

	Committed Investor:
	Wells Fargo Bank, National Association
	 

	Commitment:
	$100,000,000
	 
	 

	Managing Agent:
	Wells Fargo Bank, National Association
	 

Capital One Investor Group

	
				
	Conduit Investor:
	N/A
	 

	Committed Investor:
	Capital One, National Association
	 

	Commitment:
	$75,000,000
	 
	 

	Managing Agent:
	Capital One, National Association
	 

Schedule II to Amendment No. 13 to 
Transfer and Administration Agreement

SCHEDULE 11.3 
Address and Payment Information

If to MUFG Bank, Ltd.:

1221 Avenue of the Americas
New York, New York 10020
Attn:  Securitization Group
Fax:  (212) 782-6448
Tel:   (212) 782-4911

Payment Information:
MUFG Bank, Ltd.
Account Name: Loan Operations Dept.
ABA #: 0260-0963-2
Ref: Thoroughbred Funding Inc.
Account #: 0097770191

If to SMBC Nikko Securities America, Inc.:

277 Park Avenue, 5th Floor
New York, NY  10172
Attn:    Kyle Ripp/Structured Finance Group
Email:    kripp@smbcnikko-si.com
Tel:    (212) 224-5340

Payment Information:
Citibank N.A. New York (Swift: CITIUS33)       
ABA 021000089             
Account Name: SMBC New York Branch (Swift: SMBCUS33)   
Account Number: 36023837   
Attn: Loan Services Department       
Ref:  Norfolk/Thoroughbred

If to Sumitomo Mitsui Banking Corporation:

Sumitomo Mitsui Banking Corporation
277 Park Avenue
New York, NY 10172
Attn: Ana Tarysuk, US Corporate Banking
Phone: 212-224-4110

If to Wells Fargo Bank, National Association:

Wells Fargo Bank, N.A. 
1100 Abernathy Road, NE 16th Floor 
Atlanta, GA 30328-5657
Attn: Isaac Washington, Vice President
Tel: 770-508-2167
Email: Isaac.Washington@wellsfargo.com

With a copy to:

Wells Fargo Bank, N.A. 
1100 Abernathy Road, NE 16th Floor 
Atlanta, GA 30328-5657
Attn: Jonathan Davis, Collateral Analyst
Tel: 770-508-2162
Fax:  866-671-9693
Email: Jonathan.davis@wellsfargo.com

With a copy to:

Wells Fargo Bank, N.A. 
1100 Abernathy Road, NE 16th Floor 
Atlanta, GA 30328-5657
Attn: Tim Brazeau, Collateral Analyst Manager
Tel: 770-508-2165
Fax:  855-818-1932
Email: Timothy.s.brazeau@wellsfargo.com

With a copy to: WFCFReceivablesSecuritizationAtlanta@wellsfargo.com

Payment Information:    
Bank name: Wells Fargo Bank, N.A.
ABA/Routing: 121-000-248
Account Name:  Wells Fargo Bank, N.A.
Account number: 37235547964503199
Reference: Thoroughbred Funding, Inc. A/R (TFN00)           

If to Capital One, National Association:

Capital One, N.A.
710 Route 46 E Floor 3
Fairfield, NJ 07004
Attn: Edward Behnen
Tel: 973-439-4131
Email: Edward.Behnen@capitalone.com    

Payment Information:
Bank name: Capital One, N.A.
ABA/Routing: 065000090
Account Name:  CLS MM ABL
Account number: 38395-10002129
City/State: Melville, NY
Attention: Diane Butler
Reference: Thoroughbred Funding, Inc.

If to the SPV:

Thoroughbred Funding, Inc.
Three Commercial Place 
Norfolk, VA 23510
Fax:    (757) 629-2361
Tel:     (757) 629-2780

Payment Information:
Wells Fargo Bank, National Association
ABA:         121000248
Account Number:     2000035260855
Ref:        Thoroughbred Funding Inc Norfolk, VA

If to the Originator, NSC or the Servicer:

Norfolk Southern Railway Company
Norfolk Southern Corporation
Three Commercial Place
Norfolk, VA 23510
Fax:    (757) 629-2361
Tel:     (757) 629-2780

If to the Administrative Agent:

MUFG Bank, Ltd.
1221 Avenue of the Americas
New York, New York 10020
Attn:    Securitization Group
Fax:    (212) 782-6448
Tel:     (212) 782-4911
    
Payment Information:
MUFG Bank, Ltd.
Account Name: Loan Operations Dept.
ABA #: 0260-0963-2
Ref: Thoroughbred Funding Inc.
Account #: 0097770191

Schedule III to Amendment No. 13 to 
Transfer and Administration Agreement

Exhibit F

Form of Servicer Report

See Attached

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