Document:

exv10w5

 

Exhibit 10.5

As of February 12, 2003

GMAC COMMERCIAL FINANCE LLC

1290 Avenue of the Americas

New York, New York 10104

Re: Amendment to ARMS Agreement

Gentlemen:

     Reference is made to that certain Restated and Amended Accounts Receivable
Management and Security Agreement, dated July 13, 1998 (as the same now exists
or may hereafter be amended, restated, renewed, replaced, substituted,
supplemented, extended, or otherwise modified, the “ARMS Agreement”), by and
between GMAC COMMERCIAL FINANCE LLC, successor by merger to GMAC COMMERCIAL
CREDIT LLC (“Lender”) and TARGET LOGISTIC SERVICES, INC. (“Borrower”), formerly
known as Target Air Freight, Inc. All capitalized terms used and not otherwise
defined herein shall have the respective meanings ascribed to them in the ARMS
Agreement.

     Borrower has requested that Lender amend and modify certain terms of the
ARMS Agreement, which Lender has agreed to do subject to and on the terms and
conditions contained in this Letter Re: Amendment to ARMS Agreement (the
“Amendment”).

     In consideration of the foregoing, the parties hereto mutually agree as
follows:

     1.     Definitions. Paragraph 1(A) of the ARMS Agreement is hereby amended by
adding the following definitions:

	 	“EBITDA” shall mean for any given period for Holdings the sum of (a) net
income (or loss) determined in accordance with GAAP less all extraordinary
gains plus (b) taxes plus (c) interest expense plus (d) without
duplication, depreciation and amortization and other non-cash expenses
during such period. EBITDA shall be determined on a trailing twelve (4)
quarter basis. Notwithstanding anything to the contrary contained herein,
any financial covenant using this definition shall be calculated
commencing with the period ending December 31, 2003 and for any given
period thereafter.”

     2.     Ratification. Except as otherwise set forth herein, no other changes or
modifications to the ARMS Agreement are intended or implied and, in all other
respects, the ARMS Agreement remains in full force and effect in accordance
with its existing terms and provisions and is hereby specifically ratified and
confirmed as of the date hereof. Except as specifically set forth herein,
nothing contained herein shall evidence a waiver or amendment by the Lender of
any other provision of the ARMS Agreement.

     3.     Successors and Assigns. The terms and provisions of this Amendment shall
be for the benefit of the parties hereto and their respective successors and
assigns; no other person, firm, entity or corporation shall have any right,
benefit or interest under this Amendment.

     4.     Counterparts. This Amendment may be signed in counterparts, each of which
shall be an original and all of which taken together constitute one amendment.
In making proof of this Amendment, it shall not be necessary to produce or
account for more than one counterpart signed by the party to be charged.

     5.     Entire Agreement. This Amendment sets forth the entire agreement and
understanding of the parties with respect to the matters set forth herein.
This Amendment cannot be changed, modified, amended or terminated except in a
writing executed by the party to be charged.

	 	Very truly yours,

 

 

	 	 	 
	 	 	
TARGET LOGISTIC SERVICES, INC.
	 	 	 
	 	 	 
	 	 	
By: /s/ Philip J. Dubato
	 	 	

	 	 	
Title: Vice President, Secretary and Treasurer

	 	 	 
	ACKNOWLEDGED AND AGREED:	 
	 
	GMAC COMMERCIAL FINANCE LLC	 
	 
	By:	 	 
	 	
	 
	 
	Title:	 	 
	 	
	 
	 

ACKNOWLEDGMENT AND CONSENT OF GUARANTOR

     1.     Target Logistics, Inc. (as successor in interest to Amertranz Worldwide
Holding Corp., the “Guarantor”) has executed and delivered a Guaranty, dated
January 14, 1997 (the “Guaranty”) in favor of GMAC Commercial Finance LLC,
successor by merger to GMAC Commercial Credit LLC, formerly known as BNY
Factoring LLC, as successor by merger to BNY Financial Corporation (the
“Lender”). Guarantor hereby acknowledges and consents to the annexed Letter
re: Amendment to Restated and Amended Accounts Receivable Management and
Security Agreement, by and between Target Logistic Services, Inc. and Lender
and the transactions referred to thereunder (the “Amendment”).

     2.     Guarantor hereby acknowledges, confirms and agrees that the Guaranty,
the General Security Agreement, dated January 14, 1997, by and between
Guarantor and Lender and all other documents and agreements executed by
Guarantor in connection therewith, are and remain in full force and effect in
accordance with their respective terms as of the date hereof, and that all
Obligations (as defined in the Guaranty) are due and payable to Lender without
offset, defense or counterclaim of any kind, nature or description whatsoever.

	 	 	 
	 	 	
TARGET LOGISTICS, INC.
	 	 	 
	 	 	 
	 	 	
By: /s/ Philip J. Dubato
	 	 	

	 	 	
Title: Chief Financial Officer<PAGE>
                          BRIGGS & STRATTON CORPORATION

               FORM 10-Q for Quarterly Period Ended March 30, 2003

                                Exhibit No. 10.0

                       AMENDMENT TO DEFERRED COMPENSATION
                               PLAN FOR DIRECTORS

      WHEREAS, the Board of Directors has approved a Deferred Compensation Plan
for Directors to offer non-employee directors the opportunity to defer all or a
portion of their compensation for future services as a member of the Board of
Directors, and

      WHEREAS, Section V of the plan provides that a director may elect to
receive a distribution with respect to common share units of Company stock in
the form of cash or common stock, and the Board desires to specify how the
common share units shall be valued when a director makes an election to receive
a cash distribution with respect to such units,

      RESOLVED, that Section V of the Deferred Compensation Plan for Directors
is amended by adding the following to the end of the last paragraph: "Notice of
the election with respect to Common Share Units shall be delivered to the
Secretary no more than 30 nor less than 10 days preceding the distribution, and,
if a cash distribution has been elected, the amount of the distribution shall be
determined by valuing units to be distributed at the Fair Market Value of Common
Stock two business days preceding the distribution."<PAGE>
                          BRIGGS & STRATTON CORPORATION

               FORM 10-Q for Quarterly Period Ended March 30, 2003

                                Exhibit No. 10.1

                            AMENDMENT TO KEY EMPLOYEE
                           SAVINGS AND INVESTMENT PLAN

      WHEREAS, the Board of Directors has established the Key Employee Savings
and Investment Plan ("KESIP") to permit Board-elected officers and other
designated key employees the opportunity to defer a portion of their regular
compensation and total bonus payout that are not eligible for deferral under the
Employee Savings and Investment Plan ("ESIP"), and

      WHEREAS, the Board desires to modify the KESIP to match employee
contribution limits with those in the ESIP and to clarify the date on which
distributions under the KESIP commence,

      RESOLVED, that sections 3.1(a) and 3.2(a) of the Key Employee Savings and
Investment Plan are amended to replace "(not exceeding 16%)" with "(not
exceeding 30%)".

      FURTHER RESOLVED, that the first sentence of section 6.1 of the Key
Employee Savings and Investment Plan is amended to read: "Except as otherwise
may be provided in this Article VI, distributions of a Participant's Account
shall be made to the Participant (or the Participant's Beneficiary in the event
of the Participant's death before all amounts are paid) in ten (10) annual
installments, with the first installment to be paid in January of the year
following the later of the Calendar Year in which the Participant retires or
attains age 62, and with subsequent installments to be paid in each succeeding
January until the Participant's Account shall be distributed in full."<PAGE>
                          BRIGGS & STRATTON CORPORATION

               FORM 10-Q for Quarterly Period Ended March 30, 2003

                                Exhibit No. 10.2

                        AMENDMENT TO STOCK INCENTIVE PLAN

      WHEREAS, the Company executed Stock Option Agreements as of August 5, 1998
(the "1998 Agreements") that grant optionees stock options to purchase from the
Company shares of its common stock at $44.98 per share during the period
commencing on August 5, 2001 and ending on August 5, 2003,

      WHEREAS, the Company intends to publicly release its fiscal 2003 year-end
financial information on or about August 7, 2003, and immediately prior to that
date certain individuals will be prohibited from engaging in cashless exercises
with respect to these options under the Company's policy on insider trading, and

      WHEREAS, the Company desires to provide all optionees the opportunity to
exercise options under the 1998 Agreements for a limited period of time
following the public release of its year-end financial information,

      RESOLVED, the officers of the Company are authorized to amend the 1998
Agreements effective August 5, 2003 so that (a) the unexercised portion of any
incentive stock option granted under the 1998 Agreements shall be converted to a
non-qualified stock option, and (b) such option and any other unexercised option
granted under the 1998 Agreements shall expire on August 29, 2003.<PAGE>
                                                                    EXHIBIT 10.1

                            STOCK PURCHASE AGREEMENT

         This STOCK PURCHASE AGREEMENT (the "AGREEMENT") is made and entered
into as of the 10th day of May 2003, by and among PACKAGED ICE, INC., a Texas
corporation ("BUYER" or "COMPANY"), and BANC OF AMERICA SECURITIES LLC
("SELLER").

                                    RECITALS

         A. Buyer anticipates that it will enter into a merger agreement (the
"MERGER AGREEMENT"), pursuant to which a to-be-named direct or indirect wholly
owned subsidiary of a to-be-named acquiring entity will be merged with and into
Company (the "MERGER").

         B. Seller desires to sell to Buyer 294,735 shares (as of the date
hereof but subject to accretion) of the Company's 10% Exchangeable Preferred
Stock, par value $0.01 per share (including such shares of the Company issued to
Seller in respect of accrued and unpaid dividends thereon, the "SHARES").

         C. Immediately prior to the closing and consummation of the Merger,
Seller shall sell and transfer to Buyer and Buyer shall purchase and receive
from Seller the Shares for the consideration and upon the terms and conditions
hereinafter set forth.

         NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties to this Agreement
hereby agrees as follows:

                             STATEMENT OF AGREEMENT

         1.       Sale and Purchase.

                  a. Securities to be Transferred. On the Closing Date (as
         defined in Section 5), Seller shall sell and transfer the Shares to
         Buyer and Buyer shall purchase the Shares from Seller.

                  b. Purchase Price for Shares. At the Closing (as defined in
         Section 5), the Buyer shall deliver to Seller, as the purchase price of
         the Shares, consideration equal to $77.00 per Share (plus an amount
         equal to $77.00 per share of the Company's 10% Exchangeable Preferred
         Stock to be issued by the Company in respect of accrued and unpaid
         dividends on the Shares after the date hereof (collectively, the
         "PURCHASE PRICE"). The Purchase Price will be paid by the Buyer to the
         Seller in immediately available US Dollar funds via wire transfer to
         the following account:

                  ---------------------------------------------

                  ---------------------------------------------

                  ---------------------------------------------

                                       1
<PAGE>

                  c. Instruments of Conveyance and Transfer. At the Closing,
         Seller shall deliver to Buyer a certificate or certificates (to the
         extent any have been issued by the Company and received by the Seller)
         representing the Shares registered in Seller's name, together with duly
         executed stock powers endorsed to Buyer with signatures guaranteed by a
         national bank or trust or such other assignments or instruments of
         conveyance and transfer, in form and substance reasonably satisfactory
         to Buyer and its counsel, as shall be effective to vest in Buyer all of
         Seller's right, title and interest in and to all of the Shares.

         2. Representations and Warranties by Seller. Seller represents and
warrants to Buyer that:

                  a. Seller is now, and at the date of Closing will be, the sole
         record and beneficial owner of the Shares; no person will have a right
         to acquire or direct the disposition, or hold a proxy or other right to
         vote or direct the vote, of such Shares; and Seller will have good
         title to such Shares, free and clear of any agreements, restrictions,
         liens, adverse claims or encumbrances whatsoever. As of the Closing,
         other than this Agreement and the Merger Agreement there will be no
         option, warrant, right, call, proxy, agreement, commitment or
         understanding of any nature whatsoever, fixed or contingent, that
         directly or indirectly (i) calls for the sale, pledge or other transfer
         or disposition of any of such Shares, any interest therein or any
         rights with respect thereto, or relates to the voting, disposition,
         exercise, conversion or control of such Shares, or (ii) obligates
         Seller to grant, offer or enter into any of the foregoing.

                  b. Seller has full power and authority to execute and deliver
         this Agreement and to perform Seller's obligations hereunder. Assuming
         due execution and delivery of this Agreement by Buyer, this Agreement
         constitutes the valid and legally binding obligation of Seller,
         enforceable in accordance with its terms.

                  c. Seller has not entered into any agreement, arrangement or
         understanding with any person or firm which will result in the
         obligation of any person to pay any finder's fees, brokerage or agent's
         commission or other like payments in connection with the negotiations
         leading to this Agreement or the consummation of the transactions
         contemplated hereby.

         3. Covenants by Seller. Seller hereby covenants and agrees that it will
not enter into any transaction, take any action or by inaction permit any event
to occur that would result in any of its representations or warranties herein
contained not being true and correct at and as of the date of the Closing.

         4. Representations and Warranties by Buyer. Buyer represents and
warrants to Seller that:

            a. Buyer has full power and authority to execute and deliver this
Agreement and to perform Buyer's obligations hereunder.

                                       2
<PAGE>

            b. Assuming due execution and delivery of this Agreement by Seller,
this Agreement constitutes the valid and legally binding obligation of Buyer,
enforceable in accordance with its terms.

            c. The sale to and purchase by Buyer of the Shares hereunder
constitutes a transaction exempt from registration under any applicable
securities laws.

            d. The sale to and purchase by Buyer of the Shares in accordance
with the terms of this Agreement shall not constitute or result in any violation
of any applicable securities laws.

            e. Buyer has not entered into any agreement, arrangement or
understanding with any person or firm which will result in the obligation of any
person to pay any finder's fees, brokerage or agent's commission or other like
payments in connection with this Agreement or the consummation of the
transactions contemplated hereby.

         5. Closing; Conditions to Closing. The closing of the sale to and
purchase by Buyer of the Shares (the "CLOSING") shall occur at the offices of
Akin Gump Strauss Hauer & Feld, LLP, 1700 Pacific Avenue, Dallas, Texas, or such
other place agreed to by the parties hereto, immediately prior to the closing of
the Merger, or at such other time prior thereto or to the Drop Dead Date (as
hereinafter defined) as determined by Buyer (the "CLOSING DATE"). The Closing
shall be conditioned upon, unless waived by Buyer or Seller (as the case may be)
in their sole discretion, (a) each of the representations and warranties made by
Seller and Buyer in this Agreement being true and correct in all material
respects at and as of the time of Closing; (b) Seller and Buyer having each
performed in all material respects each and every covenant and agreement
contained in this Agreement required to be performed by it by the time of
Closing; (c) Seller shall have received and reviewed a copy of the final and
fully executed Merger Agreement; and (d) all conditions set forth in the Merger
Agreement being satisfied or waived prior to the closing of the Merger.

         6. Severability. Any term or provision of this Agreement that is
invalid or enforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity or unenforceability without
rendering invalid or unenforceable the remaining terms and provisions of this
Agreement or affecting the validity or enforceability of any of the terms or
provisions of this Agreement in any other jurisdiction. If any provision of this
Agreement is so broad as to be unenforceable, such provision shall be
interpreted to be only so broad as is enforceable.

         7. APPLICABLE LAW. THIS AGREEMENT SHALL BE GOVERNED IN ALL RESPECTS,
INCLUDING VALIDITY, INTERPRETATION AND EFFECT, BY THE LAWS OF THE STATE OF NEW
YORK REGARDLESS OF THE LAWS THAT MIGHT OTHERWISE GOVERN UNDER APPLICABLE
PRINCIPLES OF CONFLICTS OF LAWS THEREOF.

         8. Expenses. Whether or not the transactions contemplated by this
Agreement are consummated, each of the parties hereto shall pay its respective
fees and expenses incurred in connection herewith.

                                       3
<PAGE>

         9. Entire Agreement. This Agreement (together with the documents and
instruments received by the parties in connection with this Agreement)
constitutes the entire agreement and supersedes all other prior agreements and
understandings, both written and oral, between the parties hereto with respect
to the subject matter hereof.

         10. Amendments. This Agreement may not be amended or modified except by
a written instrument signed on behalf of each of the parties hereto.

         11. Assignment; Binding Effect. Nothing contained in this Agreement
shall be deemed to prohibit Buyer from assigning its rights to any of its
affiliates. Any such assignment shall not relieve Buyer from its obligations
hereunder. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns.

         12. Notices. Any notice or other communication required or permitted
hereunder shall be in writing and either delivered personally, by facsimile
transmission or by registered or certified mail (postage prepaid and return
receipt requested) and shall be deemed given when received (or, if mailed, five
business days after the date of mailing) at the following addresses or facsimile
transmission numbers (or at such other address or facsimile transmission number
for a party as shall be specified by like notice):

                  a. If to Buyer: Packaged Ice, Inc., 3535 Travis Street, Suite
         170, Dallas, Texas 75204, Attention: William P. Brick, CEO (facsimile
         transmission number: (214) 528-1532), with a copy (which shall not
         constitute notice) to Akin Gump Strauss Hauer & Feld, LLP, 300 Convent
         Street, Suite 1500, San Antonio, Texas 78205 (facsimile transmission
         number: (210) 224-2035).

                  b. If to Seller: Banc of America Securities LLC, Global
         Special Situations Group, 9 West 57th Street, New York, NY 10019,
         Attention: Lynne Wertz, Managing Director (facsimile transmission
         number: (212) 583-8130), with a copy to (which shall not constitute
         notice) to Bank of America Corporation, Legal Department, 100 North
         Tryon Street, 20th Floor, Charlotte, NC 28255, Attention Stephen P.
         Ewald, (facsimile transmission number: (704) 409-0326).

         13. Counterparts. This Agreement may be executed in one or more
counterparts, and by the parties hereto in separate counterparts, each of which
when executed shall be deemed to be an original but all of which shall
constitute one and the same agreement.

         14. Termination. Upon (i) termination of the Merger Agreement for any
reason whatsoever or (ii) the failure of Seller to obtain all releases of liens
on its Shares prior to the merger contemplated by the Merger Agreement or (iii)
November 15, 2003 (the "DROP DEAD DATE"), this Agreement shall immediately
become void and there shall be no further obligation hereunder on the part of an
party hereto.

                                       4
<PAGE>

         IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by themselves or their duly authorized representatives, on the date
first written above.

                                 "BUYER"

                                 PACKAGED ICE, INC.

                                 By:     /s/ WILLIAM P. BRICK
                                    --------------------------------------------
                                 Name:   William P. Brick
                                      ------------------------------------------
                                 Title:  Chairman & Chief Executive Officer
                                       -----------------------------------------

                                 "SELLER"

                                 BANC OF AMERICA SECURITIES LLC

                                 By:     /s/ Lynne E. Wertz
                                    --------------------------------------------
                                 Name:   Lynne E. Wertz
                                      ------------------------------------------
                                 Title:  Managing Director
                                       -----------------------------------------

                                       5

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