Document:

Consent Order issued by the Federal Housing Finance Agency

 Exhibit 10.2 
 UNITED STATES OF AMERICA 
 FEDERAL HOUSING FINANCE AGENCY 

Bank Consent Order No. 2010-1 
 In the Matter of: 
 The Federal Home Loan Bank of Seattle 

CONSENT ORDER 
 WHEREAS, the Acting Director of the Federal Housing Finance Agency (“FHFA”) has determined to initiate action to address certain unsafe and unsound practices at the Federal Home Loan Bank
of Seattle (“Bank”), pursuant to supervisory authorities provided under sections 1311 and 1313 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (“1992 Act”), 12 U.S.C. §§ 4511 and 4513, as
amended by the Housing and Economic Recovery Act of 2008 (“HERA”), PL 110-289 Titles I-III, 122 Stat. 2654 (July 30, 2008); 
 WHEREAS, the Federal Home Loan Bank of Seattle (“Bank”) is a Federal Home Loan Bank that has been established pursuant to section 3 of the Federal Home Loan Bank Act (“Bank
Act”), 12 U.S.C. § 1423, and operates pursuant to the Bank Act and the 1992 Act as such acts have been amended by HERA; 
 WHEREAS, the Bank and the Agency have entered into a Stipulation and Consent to the Issuance of a Consent Order (“Order”), dated October 25th, 2010; and, 

  
 WHEREAS, the
Acting Director believes that it would be in the public interest to enter into this Consent Order with Bank; 
 NOW
THEREFORE, the Acting Director, pursuant to the authority vested in him by the Bank Act as amended by HERA, hereby orders that: 
 Article I 
 Oversight 

(1) The Board shall be responsible for monitoring and coordinating the Bank’s adherence to the provisions of this Order and shall
submit such reports as directed by the Agency. 
 (2) Such reports shall be provided in such format and through such method as
directed by the Agency. 
 Article II 
 Asset Improvement Program 
 (1) The Bank shall not resume purchasing any
mortgage loan under the Acquired Member Assets Program. 
 (2) The Board shall submit a plan for risk mitigation acceptable to
the Agency that addresses those actions to be taken to address potential further declines in the credit quality of the Bank’s private label securities portfolio. Such plan shall contain any descriptions, analyses, projections, timetables and
other information as the Agency may direct the Bank to provide and must satisfy all requirements and deadlines mandated by the Agency. 

  
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 (3) The Board shall
develop and submit a plan acceptable to the Agency, for increasing advances as a percentage of bank assets which satisfies any requirements the Agency may provide. 
 (4) The Board shall submit a plan for collateral risk management acceptable to the Agency. Such plan shall contain any descriptions, analyses, projections, timetables and other information as the Agency
may direct the Bank to provide and must satisfy such requirements as the Agency may provide. Such Plan must assure that the Bank has in place appropriate collateral risk management policies, complies with those collateral risk management policies,
informs the Board of existing policy exceptions, and establishes a reasonable and formal time limit for delivery transitions. 

(5) Upon approval by the Agency, the Bank shall immediately implement and adhere to any plan required by this Article. 

Article III 

Capital Adequacy and Retained Earnings 
 (1) The Bank shall submit to the Agency, for its review and approval and in line with any guidance the Agency may provide, a capital stock repurchase plan that sets forth targets that the Bank must meet
and contains any descriptions, analyses, projections, timetables and other information as the Agency may direct. The Agency shall have full access to any information employed by or generated by the Bank or on its behalf in the development of such
plan. 
 (2) The Bank shall not resume repurchases or redemptions of its capital stock without the prior written approval of the
Acting Director. 

  
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 (3) The Bank shall not
pay any dividends except upon compliance with the capital restoration and retained earnings plans approved by the Agency and with the prior written application to and prior approval by the Agency. 

Article IV 

Risk Management 
 (1) Within forty-five (45) days of this Order, the Board shall engage an independent, outside consultant to evaluate the Bank’s credit risk management policies, procedures and practices. The
Bank shall submit the proposed scope of the consultant’s engagement to the Agency for its prior consideration and the Agency shall have the right to expand, revise or reject the scope of the engagement or to reject the engagement of the
proposed consultant. 
 (2) The findings and any recommendations of the consultant shall be set forth in a written report and
the report shall be provided to the Board and Agency within ninety days (90) of the consultant’s engagement. 
 Article
V 
 Senior Management 
 No personnel action at the Bank involving compensation or a material change to duties or responsibilities shall be undertaken regarding management at the senior vice president level or above without
consultation with and non- objection by FHFA. Personnel actions relating to violations of the Bank’s Code of Conduct, required by law or for disciplinary reasons are exempt from this limitation. 

  
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 Article VI 

Remediation of Examination Findings 
 (1) The Board shall cause management to take all necessary steps to ensure that the Bank corrects or otherwise remediates each finding in the 2010 Report of Examination (“ROE”). The Board shall
submit, as required by the Agency and for Agency review and approval, an examination remediation plan. Such plan shall contain any descriptions, analyses, projections, timetables and other information as the Agency may direct the Bank to provide and
must satisfy all requirements and deadlines established by the Agency. 
 (2) Upon approval, the Bank shall immediately
implement and adhere to the examination remediation plan. 
 Article VII 

Compensation Practices 
 (1) Effective immediately, the Bank shall not pay any executive officers any incentive-based compensation awards without the prior written approval of the Agency. 

(2) The Board shall develop and submit to the Agency for its review and approval a revised Executive Incentive Compensation Plan that
restricts excessive compensation and establishes appropriate criteria to assure that compensation is properly aligned with sound risk management and safety and soundness principles. Such plan shall contain any descriptions, analyses, projections,
timetables and other information as the Agency may direct the Bank to provide and such plan must satisfy all requirements and deadlines established by the Agency. The Agency shall have full access to any information employed by or generated by the
Bank or any consultant to the Bank in the development of such plan. 

  
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 (3) Upon approval, the
Bank shall immediately implement and adhere to the Executive Incentive Compensation Plan. 
 Article VIII 

Information Technology 
 The Board must develop an enterprise-wide information technology (IT) policy that meets such requirements as the Agency may provide. 

Article IX 

Miscellaneous 
 (1) Any report or plan or other communication to be submitted by the Bank or the Board to the Agency under this Consent Order shall be sent electronically or in writing to: 

Deputy Director of the Division of Bank Regulation 
 Federal Housing Finance Agency 
 1700 G Street N.W. 4th Floor 

Washington, D.C. 20552 
 The
Deputy Director of the Division of Bank Regulation may designate any other Agency employee to receive any plan or report required under this Order or other communication concerning this Consent Order by notifying the Bank in writing of such
designation. 
 (2) The provisions of this Order shall be effective upon its execution and the provisions shall continue in full
force and effect until such provisions are amended, excepted, waived or 

  
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 terminated in writing by the Agency.
The Agency may provide guidance to the Bank regarding matters described in this Order. 
 IN TESTIMONY WHEREOF, the
undersigned Acting Director of FHFA has hereunto set his hand on behalf of himself and FHFA. 
  

					
	 /s/ EDWARD J. DEMARCO
	 		 	
	Edward J. DeMarco	 		 	October 25, 2010
	Acting Director, Federal Housing Finance Agency	 		 	

  
 7First Amendment to Credit Agreement

  
 Exhibit 10.1

 EXECUTION COPY 
 FIRST AMENDMENT TO CREDIT AGREEMENT 
 FIRST AMENDMENT TO CREDIT AGREEMENT (this
“First Amendment”), dated as of October 22, 2010, among Quality Distribution, Inc., a Florida corporation (“Holdings”), Quality Distribution, LLC, a Delaware limited liability company (the
“Borrower”), the Lenders party hereto, Credit Suisse, Cayman Islands Branch (“Credit Suisse”), as Administrative Agent for the Lenders, and General Electric Capital Corporation (“GECC”), as
Collateral Agent for the Lenders. Unless otherwise defined herein, all capitalized terms used herein and defined in the Existing Credit Agreement referred to below are used herein as therein defined. 

W I T N E S S E T H : 

WHEREAS, Holdings, the Borrower, the Lenders, the Administrative Agent and the Collateral Agent are party to that certain Credit
Agreement, dated as of December 18, 2007 (as amended, modified, amended and restated and/or supplemented, the “Existing Credit Agreement”); 
 WHEREAS, the Borrower has informed the Administrative Agent and the Lenders that the Note Co-Issuers intend to issue up to $275,000,000 of 2010 Senior Secured Notes (as defined below) to, inter
alia, refinance certain existing Indebtedness of the Borrower and its Subsidiaries; 
 WHEREAS, pursuant to the terms and
subject to the conditions set forth below, the parties hereto wish to amend certain provisions of the Existing Credit Agreement to permit the issuance of the 2010 Senior Secured Notes (as defined below), as provided herein; and 

NOW, THEREFORE, in consideration of the premises, covenants and agreements contained herein, and for other good and valuable
consideration (the receipt and sufficiency of which are hereby acknowledged), the parties hereto, intending to be legally bound, hereby agree as follows: 
  

	A.	Amendments to the Existing Credit Agreement 

 1. The definition of “Change of Control” contained in Section 1.01 of the Existing Credit Agreement is hereby amended by inserting the text “the 2010 Senior Secured Notes
Indenture,” immediately prior to the text “the New Senior Notes Indenture” appearing in clause (a)(iii) thereof. 

2. The definition of “Permitted Encumbrance” contained in Section 1.01 of the Existing Credit Agreement is hereby
restated in its entirety as follows: 
 “Permitted Encumbrance” shall mean (x) Liens
permitted pursuant to Section 6.02(d), (e), (k), (r) and (aa), in each case, to the extent such Liens arise by operation of law and are not created, granted or incurred with the consent of any Loan Party, (y) Liens permitted pursuant
to Section 6.02(b) and (cc) and (z) Liens permitted pursuant to Section 6.02(v) and securing the 2010 Senior Secured Notes. 
 3. The definition of “Unrestricted Subsidiary” contained in Section 1.01 of the Existing Credit Agreement is hereby amended by inserting the text “the 2010 Senior Secured Notes
Indenture,” immediately prior to the text “the New Senior Notes Indenture” appearing in clause (c) of the first proviso thereof. 
 4. Section 1.01 of the Existing Credit Agreement is hereby further amended by inserting the following new definitions in their appropriate alphabetical order in said Section: 

“2010 Senior Secured Notes” shall mean those certain Second-Priority Senior Secured Notes due 2018 issued
by the Note Co-Issuers at any time following the First Amendment Effective Date, in an aggregate principal amount not to exceed $275,000,000 (together with any “tack-on” or “follow-on” notes, whether or not issued under the same
indenture). 

  

“2010 Senior Secured Notes Indenture” shall mean the Indenture under which the 2010 Senior Secured Notes
are issued, among the Note Co-Issuers and certain of the Subsidiaries party thereto and the trustee named therein from time to time (together with any indenture governing any “tack-on” or “follow-on” notes issued under a separate
indenture), as amended, restated, supplemented or otherwise modified from time to time in accordance with the requirements thereof and of this Agreement. 
 “First Amendment” shall mean the First Amendment to this Agreement, dated as of October 22, 2010. 

“First Amendment Effective Date” shall have the meaning provided in the First Amendment. 

5. Section 6.01(r) of the Existing Credit Agreement is hereby restated in its entirety as follows: 

“(r) (i) Indebtedness of the Note Co-Issuers pursuant to the 2010 Senior Secured Notes so long as no Default or
Event of Default shall have occurred and be continuing or would result therefrom, (ii) other Indebtedness incurred by the Borrower or any Subsidiary Loan Party so long as (A) no Default or Event of Default shall have occurred and be
continuing or would result therefrom and (B) after giving effect to the issuance, incurrence or assumption of such Indebtedness, the Total Net Senior Secured Leverage Ratio on a Pro Forma Basis shall not be greater than 3.75 to 1.00 and
(iii) Permitted Refinancing Indebtedness in respect of preceding clauses (i) and (ii);”. 
 6.
Section 6.02(v) of the Existing Credit Agreement is hereby restated in its entirety as follows: 
 “(v)
(i) Liens securing the 2010 Senior Secured Notes and Permitted Refinancing Indebtedness in respect thereof so long as at the time of the incurrence of such Lien and after giving effect thereto, no Default or Event of Default shall have occurred
and be continuing or would result therefrom and (ii) other Liens so long as, after giving effect to any such Lien and the incurrence of any Indebtedness incurred at the time such Lien is created, incurred or permitted to exist, the Total Net
Senior Secured Leverage Ratio on a Pro Forma Basis shall not be greater than 3.75 to 1.00 and at the time of the incurrence of such Lien and after giving effect thereto, no Default or Event of Default shall have occurred and be continuing or would
result therefrom; provided that, in the case of preceding clauses (i) and (ii), any such Lien on the Collateral (x) shall be junior to the Liens in favor of the Lenders and (y) shall be on terms (including intercreditor
arrangements) which are customary and reasonably satisfactory to the Revolving Facilities Agents;”. 
 7.
Section 6.09(c) of the Existing Credit Agreement is hereby amended by inserting the text “the 2010 Senior Secured Notes,” immediately prior to the text “the Existing Senior Notes” appearing in clause (B) thereof.

  

	B.	Miscellaneous Provisions 

1. In order to induce the Lenders to enter into this Amendment, each of Holdings and the Borrower hereby represents and warrants that:

 (a) no Default or Event of Default exists as of the First Amendment Effective Date, both before and
immediately after giving effect to this Amendment; and 
 (b) all of the representations and warranties contained
in the Existing Credit Agreement and the other Loan Documents are true and correct in all material respects on the First Amendment Effective Date, both before and after giving effect to this Amendment, with the same effect as though such
representations and warranties had been made on and as of the First Amendment Effective Date (it being understood that any representation or warranty made as of a specific date or for a given period shall be true and correct in all material respects
as of such specified date or such given period, as the case may be). 

  
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 2. This Amendment is
limited as specified and shall not constitute a modification, acceptance or waiver of any other provision of the Existing Credit Agreement or any other Loan Document. 
 3. This Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original,
but all of which shall together constitute one and the same instrument. A complete set of counterparts shall be lodged with the Borrower and the Administrative Agent. 
 4. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK. 

5. This Amendment shall become effective as of the date hereof (the “First Amendment Effective Date”); provided
that each of the following conditions shall have been satisfied: 
 (a) Holdings, the Borrower and the Required
Lenders shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered (including by way of facsimile transmission) the same to the Administrative Agent; 

(b) the Administrative Agent shall have received such corporate documents, certificates and resolutions as the
Administrative Agent may reasonably request; and 
 (c) each Lender which executes and delivers to the
Administrative Agent (or its designee) a counterpart hereof by 5:00 P.M. (New York City time) on October 22, 2010, shall have received from the Borrower a non-refundable cash fee (the “Amendment Fee”) in Dollars in an amount
equal to 10 basis points (i.e., 0.10%) of an amount equal to the sum of (x) the aggregate principal amount of all Current Asset Revolving Facility Loans and Fixed Asset Revolving Facility Loans of such Lender outstanding on the First Amendment
Effective Date plus (y) the total amount of all Commitments of such Lender as in effect on the First Amendment Effective Date. The Amendment Fee shall not be subject to counterclaim or set-off, or be otherwise affected by, any claim or
dispute relating to any other matter. 
 6. From and after the First Amendment Effective Date, all references in the Existing
Credit Agreement and each of the other Loan Documents to the Existing Credit Agreement shall be deemed to be references to the Existing Credit Agreement as modified hereby. 
 ***** 

  
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 IN WITNESS WHEREOF,
the undersigned have caused this Amendment to be duly executed and delivered as of the date first above written. 
  

			
	QUALITY DISTRIBUTION, INC.
		
	By	 	 /s/ Robin Cohan

		 	Name: Robin Cohan
		 	Title: VP Corporate Controller and Treasurer
	
	QUALITY DISTRIBUTION, LLC
		
	By	 	 /s/ Robin Cohan

		 	Name: Robin Cohan
		 	Title: VP Corporate Controller and Treasurer

 [Signature Page to the First Amendment to the Credit Agreement] 

  
 
			
	 CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
individually and as Administrative Agent

		
	By	 	 /s/ Robert Hetu

		 	Name: Robert Hetu
		 	Title: Managing Director
	
	 GENERAL ELECTRIC CAPITAL CORPORATION,
individually and as Collateral Agent

		
	By	 	 /s/ Jun Young

		 	Name: Jun Young
		 	Title: Duly Authorized Signatory

[Signature Page to the First Amendment to the Credit Agreement] 

			
	SIGNATURE PAGE TO THE FIRST AMENDMENT TO CREDIT AGREEMENT, DATED AS OF OCTOBER 22, 2010, TO THE CREDIT AGREEMENT, DATED AS OF DECEMBER 18, 2007, AMONG QUALITY
DISTRIBUTION, INC., QUALITY DISTRIBUTION, LLC, THE VARIOUS LENDERS PARTY THERETO AND CREDIT SUISSE, CAYMAN ISLANDS BRANCH, AS ADMINISTRATIVE AGENT
	
	NAME OF INSTITUTION:
	
	  

		
	By:	 	  

		 	Name:
		 	Title:

 [Signature Page to the First
Amendment to the Credit Agreement]

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