Document:

Exhibit 10.10.1

Exhibit 10.10.1

 

FIRST
AMENDMENT 

TO

KNIGHT
TRANSPORTATION, INC.

2003
STOCK OPTION PLAN

This
First Amendment (the “Amendment”) to the Knight Transportation, Inc. 2003 Stock
Option Plan (the “Plan”) shall be effective this 2nd day of March,
2005.

Recitals:

A.  The Board
of Directors of Knight Transportation, Inc. (the “Company”) established the Plan
in 1994 to attract and retain its executives, directors and key employees. The
Company amended and restated the Plan effective as of
February 10, 1998. The Company amended and restated the Plan effective
as of June 1, 2003.

 

B.  The Board
of Directors, has determined that it is in the best interests of the Company to
require that no stock options granted under the Plan shall have an exercise
price that is less than the fair market value of the optioned stock on the date
that the stock option is granted to ensure compliance with Section 409A of the
Internal Revenue Code as amended by Section 885 of the American Jobs Creation
Act of 2004. 

 

C.  The Board
of Directors, has determined that it is in the best interests of the Company to
require that any disputes arising under the Plan shall be resolved through
arbitration proceedings located in Phoenix, Arizona.

 

D.  Pursuant
to the authority granted in Section 8.16 of the Plan, the Board of Directors, on
behalf of the Company, adopts the following amendment to the Plan, effective as
of March 15, 2005:

Amendment:

1.   Section
5.3(b) of the Plan is hereby deleted and the following is substituted therefore,
and the following Section 5.3(c) is hereby added to the Plan:

5.3(b)  The
exercise price of an NSO, the purchase price under a Restricted Stock Grant, or
the exercise price of any Stock Option granted to a director under Article 6
shall not be less than 100% of the fair market value of a share of the Stock as
of the date of grant. For purposes of this Plan, the fair market value of a
share of Stock shall equal the closing price of such stock on the date of grant,
as reported by the New York Stock Exchange (“NYSE”). If for any reason the
closing price is not available, then the fair market value of a share of stock
may be determined as the mean of the highest and lowest quoted selling prices
for such stock on the date preceding the date of grant, as reported by the NYSE.
If for any reason the Company’s Stock is not publicly traded on a national
securities market, or not listed on the NYSE, the Committee shall evaluate all
factors 

which the
Committee believes are relevant in determining the fair market value of a share
of Stock and, the Committee, in good faith in exercising its business judgment,
shall establish the fair market value of the Stock as of the date an option is
granted.

 

5.3(c)  Options,
once issued, shall not be repriced.

2.  Section
6.1 of the Plan is hereby deleted and the following is substituted
therefore:

6.1  Automatic
Grant; Annual Compensation; Forfeiture.
Any
Independent Director appointed to the Board after September 1, 1995, shall
automatically receive an NSO for 2,500 shares of the Company’s Stock; the
exercise price of such option shall be 100% of the fair market value of the
Company’s stock as of that date. In addition, for calendar years beginning after
December 31, 2002, Independent Directors will receive an NSO for 500 shares, as
described in the next sentence, for each calendar year an Independent Director
is a Director. Such option grant shall be made on June 1 of each calendar year,
beginning on June 1, 2003, and continuing on the same day of each year
thereafter, for each person who is an Independent Director on that date. In
addition, each Independent Director who, as of December 31, 2002, has served as
an Independent Director for at least three calendar years, shall also be
entitled to an NSO grant of 1,000 shares for service previously rendered to the
Company; such option shall be issued on June 1, 2003, and the exercise
price shall be the fair market value of the Company’s Stock as of that date, as
provided in Section 5.3(b) above. Any NSO granted to an Independent Director
(other than the NSO grant for 1,000 shares described in the preceding sentence)
will be forfeited if the director resigns within one year of the date of the
grant of such NSO. 

3.  Article 8
of the Plan is hereby amended and the following is added as Section
8.21:

8.21  Arbitration
of Disputes. The
Federal Arbitration Act applies and governs the arbitration provisions of the
Plan. Any disputes between or among the Company (including its subsidiaries,
affiliates, or successors) and Participants (collectively, the “Parties”) with
respect to the terms of the Plan, including, without limitation, the scope of
this arbitration, shall be subject to arbitration pursuant to the rules of the
American Arbitration Association governing commercial disputes. Arbitration
shall occur in Phoenix, Arizona. Judgment on any arbitration award may be
entered in any court having jurisdiction. A single arbitrator shall have the
power to render a maximum award of $300,000. If any person asserts a claim in
excess of $300,000, any party to the arbitration proceeding may request that the
arbitration be heard by a panel of three (3) arbitrators and, if so requested,
the arbitration decision shall be made by a majority of the three

-2-

arbitrators.
The Company shall pay the cost of arbitration, but if the Company is the
prevailing party in the arbitration, the Company shall have the right to recover
from the Participant all costs of arbitration. THE
PARTIES SHALL EXPRESSLY AGREE TO ARBITRATION AND WAIVE ANY RIGHT TO TRIAL BY
JURY EITHER PARTY MAY HAVE BY EXECUTING THE STOCK OPTION
AGREEMENT. Nothing
in the Plan or any Stock Option Agreement between the Company and any
Participant shall limit or restrict any self-help remedy, including, without
limitation, any right of offset a Party may have. The Party prevailing in any
arbitration shall be entitled to payment of all legal fees and costs (including
court costs), and all costs of arbitration, regardless of whether such costs are
recoverable under applicable law.

4.  The
foregoing First Amendment to the Plan was approved by the Company’s Compensation
Committee of the Board of Directors by Resolutions and Action Taken Without a
Meeting, as of March 2, 2005, to be effective from and after March 15,
2005.

 

5.  Except as
amended by this Amendment, the Plan shall continue in full force and effect as
previously constituted and amended. 

DATED
this 3rd day of March, 2005.

	 	 	
      KNIGHT
      TRANSPORTATION, INC., an Arizona corporation

	 	 	 
	 	
      By:
	
      /s/
      Kevin P. Knight

	 	 	
      Kevin
      P. Knight,

      Chief
      Executive Officer

	 	 	 
	 	
      By:
	
      /s/
      Timothy M. Kohl

	 	 	
      Timothy
      M. Kohl,

      Secretary

 

-3-

 Back for
Form 10-QExhibit 10.16 Amendment No. 8 to Loan Agreement

Exhibit 10.16

 

Execution
Version

AMENDMENT
NO. 8 TO

LOAN
AGREEMENT

(CVTI/Covenant
Transport)

     THIS
AMENDMENT NO. 8 TO LOAN AGREEMENT, dated as of March 29, 2005 (the “Amendment”),
is entered into by and among THREE PILLARS FUNDING LLC (formerly known as THREE
PILLARS FUNDING CORPORATION), (“Three Pillars”), SUNTRUST CAPITAL MARKETS, INC.
(formerly SunTrust Equitable Securities Corporation), as administrator (the
“Administrator”), CVTI RECEIVABLES CORP. (“CVTI”), and COVENANT TRANSPORT, INC.
(“Covenant”). Capitalized terms used and not otherwise defined herein are used
as defined in the Loan Agreement, dated as of December 12, 2000 among Three
Pillars, the Administrator, CVTI and Covenant (as amended to date, the “Loan
Agreement”).

 

    WHEREAS, the
parties hereto desire to further amend the Loan Agreement in certain respects as
provided herein;

 

    NOW
THEREFORE, in consideration of the premises and the other mutual covenants
contained herein, the parties hereto agree as follows: 

	 	
        
      SECTION 1.
	
      Limited
      Waiver.
	 

(a)     Pursuant
to Section 10.2(d) of the Loan Agreement, an Amortization Event shall occur if
the Delinquency Ratio equals or exceeds 2.00% on a rolling three month average
basis. CVTI has informed the Administrator that the Delinquency Ratio was
breached as of February, 2005 and that an Amortization Event has
occurred.

(b)     CVTI
hereby requests a waiver of, and the Administrator and Three Pillars hereby
agree to waive such breach for the month of February, 2005 and the Amortization
Event with respect to such breach, such waiver to be effective solely with
respect the breach described in clause (a) above and solely for the month of
February, 2005.

(c)     The
execution, delivery and effectiveness of this waiver shall not, except as
expressly provided herein, operate as a waiver of any right, power or remedy of
the Administrator or Three Pillars under the Loan Agreement or any of the other
Transaction Documents.

	 	
         
      SECTION 2.
	
      Amendments
      to the Loan Agreement.
	 

Effective
as of the date first set forth above, Section 10.2(d) of the Loan Agreement is
hereby deleted and replaced with the following:

 

“(d) Delinquency
Ratio. The
Delinquency Ratio shall be equal to or exceed 2.50% on a rolling three month
average basis.”

	 	
           
      SECTION 3.
	
      Representations,
      Warranties and Covenants.
	 

CVTI
hereby represents, warrants to Three Pillars and the Administrator that each of
the representations and warranties made by it or on its behalf in any of the
Transaction Documents is true and correct as of the date of this Amendment with
the same full force and effect as if each of such representations and warranties
had been made by it on the date hereof and in this Amendment. CVTI further
represents and warrants to Three Pillars and the Administrator that: (i) the
execution, delivery and performance by it of this Amendment are within its
corporate powers, have been duly authorized by all necessary action, will not
violate any requirement of law or contractual obligation of CVTI and will not
result in, or require, the creation or imposition of any lien on any of its
properties or revenues, (iii) no authorization or approval or other action by,
and no notice or filing with, any governmental authority or regulatory body is
required for the due execution, delivery and performance by it of this
Amendment, (iv) this Amendment is its legal, valid and binding obligation,
enforceable against it in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws affecting creditors’ rights generally and (v) it is in compliance
with all applicable requirements of law where the failure to be in compliance is
reasonably likely to have a Material Adverse Effect. The representations and
warranties set forth above shall survive the execution of this
Amendment.

	 	
           
      SECTION 4.
	
      Effect
      of Amendment.
	 

Except as
modified and expressly amended by this Amendment, the Loan Agreement is in all
respects ratified and confirmed, and all the terms, provisions and conditions
thereof shall be and remain in full force and effect. On and after the date
hereof, all references in the Loan Agreement to “this Agreement,” “hereto,”
“hereof,” “hereunder” or words of like import refer to the Loan Agreement as
amended by this Amendment. 

	 	
           
      SECTION 5.
	
      Binding
      Effect.
	 

This
Amendment shall be binding upon and inure to the benefit of the parties to the
Loan Agreement and their successors and permitted assigns.

	 	
           
      SECTION 6.
	
      Governing
      Law.
	 

This
Amendment shall be governed by, and construed in accordance with, the laws of
the State of New York.

2

	 	
            SECTION
      7.
	
      Execution
      in Counterparts; Severability.
	 

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 of an executed counterpart of a signature page by
facsimile shall be effective as delivery of a manually executed counterpart of
this Amendment. In case any provision in or obligation under this Amendment
shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of
such provision or obligation in any other jurisdiction, shall not in any way be
affected or impaired thereby.

[Remainder
of Page Intentionally Left Blank]

3

IN
WITNESS WHEREOF, the parties have caused this Amendment to be executed by their
respective officers thereunto duty authorized, as of the date first above
written.

	
      THREE
      PILLARS:
	 	
      THREE
      PILLARS FUNDING LLC
	 
	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
      /s/
      Doris J. Hearn
	 
	 	 	
      Title:
	
      Vice
      President
	 
	 	 	 	 
	
      THE
      ADMINISTRATOR:
	 	
      SUNTRUST
      CAPITAL MARKETS, INC.
	 
	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
      /s/
      James R. Bennison
	 
	 	 	
      Title:
	
      Managing
      Director
	 

[additional
signatures follow]

(Signature
Page to Amendment No. 8 to Loan Agreement (CVTI/Covenant
Transport))

	
      THE
      BORROWER:
	 	
      CVTI
      RECEIVABLES CORP.
	 
	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
      /s/
      Joey B. Hogan
	 
	 	 	
      Title:
	
      Treasurer
      and Chief Financial 

      Officer
	 
	 	 	 	 
	
      THE
      MASTER SERVICER:
	 	
      COVENANT
      TRANSPORT, INC.,
	 
	 	 	
      a
      Nevada holding corporation
	 
	 	 	 	 
	 	 	 	 
	 	 	
      By:
	
      /s/
      Joey B. Hogan
	 
	 	 	
      Title:
	
      Executive
      Vice President 

      and
      Chief Financial Officer
	 

[end of
signatures]

 

(Signature
Page to Amendment No. 8 to Loan Agreement (CVTI/Covenant
Transport))

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