Document:

Second Amendment to Second Amended and Restated Revolving Credit Loan Agreement

 Exhibit 10.1 
  
 SECOND AMENDMENT TO SECOND AMENDED AND 
 RESTATED REVOLVING CREDIT LOAN AGREEMENT 
  
 THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED REVOLVING CREDIT LOAN AGREEMENT (“Amendment”), dated to be effective as of
August 13, 2004, is executed by and among BESTWAY, INC., a Delaware corporation, BESTWAY RENTAL, INC., a Tennessee corporation (collectively, “Borrower”), and COMERICA BANK (“Bank”). 
  
 RECITALS: 
  
 A. Borrower and Bank have heretofore entered into that certain Second Amended and Restated Revolving Credit Loan Agreement,
dated as of October 1, 2003 (the Credit Agreement, as modified from time to time shall hereinafter be referred to as the “Original Agreement”). 
  
 B. Bank and Borrower have heretofore modified and amended the Original Agreement pursuant to the terms of that certain First
Amendment to Second Amended and Restated Revolving Credit Loan Agreement (“First Amendment”), dated to be effective as of February 25, 2004 (the Original Agreement, as amended by the First Amendment, shall hereinafter be
collectively referred to as the “Agreement”). 
  
 C. Bank and Borrower now desire to further amend the Agreement to, inter alia, (i) extend the maturity date of the loan; and (ii) modify certain financial covenants in the Agreement applicable to the loan. 
  
 NOW, THEREFORE, in consideration of the premises herein contained and other
good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
  
 I. 
  
 Definitions 
  
 1.1 Definitions. Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the same meanings as in the Agreement, as amended hereby. 
  
 II. 
  
 Amendments 
  
 2.1 Amendment to Section 1.1 of the Agreement. Effective as of the date hereof, the following definitions in Section 1.1 of the Agreement
are hereby deleted in their entirety and the following are substituted in lieu thereof: 
  
 “Interest Coverage Ratio” shall mean as of any time of determination, the ratio of (a) the Borrower’s pre-tax income
for the previous twelve month period, plus the 

 Borrower’s interest expense, plus the Borrower’s non-cost of goods sold depreciation
expense, plus the Borrower’s amortization expense, minus the amount of Borrower’s income taxes actually paid for the previous twelve-month period, in each case for the same twelve month period and as computed in accordance
with GAAP to (b) the Borrower’s interest expense for the same twelve-month period, computed in accordance with GAAP. 
  
 “Revolving Credit Note” means that certain Second Amended and Restated Revolving Credit Note in the form of Exhibit
A attached to this Agreement dated as of August 6, 2004, in the original principal amount of $11,500,000.00, executed by the Borrower and payable to the order of Bank, as renewed, extended, increased and/or modified from time to time.

  
 “Termination Date” shall
mean May 31, 2007. 
  
 2.2 Amendment of Section 6.12, 7.17 and
Section 7.18 to the Agreement. Effective as of the date hereof, Section 6.12, Section 7.17 and Section 7.18 are hereby deleted in their entirety and the following is substituted in lieu thereof: 
  
 “Section 6.12. Profitability. 

 

	 	(a)	Maintain, as of the end of each fiscal quarter of Borrower, for the previous twelve-month period, Net Income greater than or equal to zero dollars ($0.00); and

  

	 	(b)	Maintain, as of July 31, 2004, a Net Income greater than or equal to $300,000.00, as tested based upon the Bank’s review of the audited financial statements of Borrower dated
July 31, 2004. 

  
 “Section
7.17. Capital Expenditures. Permit the aggregate amount of all Capital Expenditures made during any single fiscal year of Borrower to exceed $1,750,000.00. 
  
 For purposes hereof, “Capital Expenditure” shall mean any expenditure by a Person for (a) an asset which will be
used in a year or years subsequent to the year in which the expenditure is made and which asset is properly classified in relevant financial statements of such Person as equipment, real property, a fixed asset or a similar type of capitalized asset
in accordance with GAAP or (b) an asset relating to or acquired in connection with an acquired business, and (c) any and all acquisition costs related to (a) or (b) above.” 
  
 “Section 7.18. Acquisitions. Effectuate or attempt to effectuate an expansion of present
business by acquisition in an amount that exceeds $2,000,000.00 during any single fiscal year of Borrower. In connection with any such acquisition, Borrower shall, at least ten (10) days prior to any such acquisition, provide Bank, for Bank’s
review, a pro forma Covenant Compliance Certificate.” 

 III. 
  
 Conditions Precedent 
  
 The effectiveness of this Amendment is subject to the conditions that Bank shall have received the following documents as of the date hereof, in form and
substance satisfactory to Bank: 
  
 (a) This
Amendment, duly executed by each party hereof, other than Bank; 
  
 (b) A duly executed Second Amended and Restated Revolving Credit Note in the principal amount of ELEVEN MILLION FIVE HUNDRED THOUSAND AND NO/100 DOLLARS ($11,500,000.00), in the form attached hereto as Exhibit
A; 
  
 (c) A ratification of subordination in
a form acceptable to the Bank by O’Donnell & Masur, L.P.; and 
  
 (d) All other documents Bank may reasonably request with respect to any matter relevant to this Amendment or the transactions contemplated hereby. 
  
 IV. 
  
 Ratifications and Other Agreements 
  
 4.1 Ratifications. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth
in the Agreement and except as expressly modified and superseded by this Amendment, the terms and provisions of all other documents executed in connection with the Agreement are hereby ratified and confirmed and shall continue in full force and
effect. Borrower and Bank agree that the Agreement as amended hereby and all other documents executed in connection with the Agreement or this Amendment to which Borrower is a party shall continue to be legal, valid, binding and enforceable in
accordance with their respective terms. 
  
 4.2 Representations
and Warranties. Borrower hereby represents and warrants to Bank that (a) the execution, delivery and performance of this Amendment and any and all other documents executed and/or delivered in connection herewith have been authorized by all
requisite corporate action on the part of Borrower and will not violate the articles of incorporation or bylaws of Borrower or any agreement to which Borrower or any of its properties is bound, (b) neither the articles of incorporation nor the
bylaws of Borrower have been amended or revoked since the date of the Agreement and such articles of incorporation and bylaws are in full force and effect, (c) the representations and warranties contained in the Agreement, as amended hereby, and any
other documents executed in connection therewith or herewith are true and correct on and as of the date hereof as though made on and as of the date hereof, (d) no Event of Default has occurred and is continuing and no event or condition has occurred
that with the giving of notice or lapse of time or both would be an Event of Default, and (e) Borrower is in full compliance with all covenants and agreements contained in the Agreement as amended hereby. 

 4.3 Agreement. It is agreed that any covenants in the Agreement which, because of references to
dates, could be interpreted as expiring prior to any maturity date of the Note are automatically extended in scope until such time as all indebtedness of Borrower to Bank is paid in full. 
  
 V. 
  
 Miscellaneous 
  
 5.1 Survival of Representations and Warranties. All representations and warranties made in this Amendment or any other document executed in
connection herewith shall survive the execution and delivery of this Amendment, and no investigation by Bank or any closing shall affect the representations and warranties or the right of Bank to rely upon them. 
  
 5.2 Reference to Agreement. Each of the Amendment and any and all
other agreements, documents, or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Agreement, as amended hereby, are hereby amended so that any reference in such documents to the
Agreement shall mean a reference to the Agreement, as amended hereby. 
  
 5.3 Expenses of Bank. As provided in the Agreement, Borrower agrees to pay on demand all reasonable costs and expenses incurred by Bank in connection with the preparation, negotiation, and execution of this Amendment and any other
documents executed pursuant hereto and any and all amendments, modifications, and supplements thereto, including without limitation, the costs and reasonable fees of Bank’s legal counsel, and all costs and expenses incurred by Bank in
connection with the enforcement or preservation of any rights under the Agreement, as amended hereby, or any other document executed in connection therewith, including without limitation, the costs and reasonable fees of Bank’s legal counsel.

  
 5.4 Severability. Any provision of this Amendment held
by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable. 
  
 5.5 Applicable Law. This Amendment and all other documents executed
pursuant hereto shall be deemed to have been made and to be performable in Dallas, Dallas County, Texas and shall be governed by and construed in accordance with the laws of the State of Texas. 
  
 5.6 Successors and Assigns. This Amendment is binding upon and shall
inure to the benefit of Bank, Borrower and their respective successors and assigns, except Borrower may not assign or transfer any of its rights or obligations hereunder without the prior written consent of Bank. 
  
 5.7 Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument. 

 5.8 Effect of Waiver. No consent or waiver, express or implied, by Bank to or for any breach of or
deviation from any covenant, condition or duty by Borrower or any obligated party shall be deemed a consent or waiver to or of any other breach of the same or any other covenant, condition or duty. 
  
 5.9 Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of this Amendment. 
  
 5.10 Non-Application of Chapter 346 of Texas Finance Code. The provisions of Chapter 346 of the Texas Finance Code (formerly Chapter 15 of the Texas Credit Code (Vernon’s Texas Civil Statutes), Article
5069-15), as amended or codified are specifically declared by the parties not to be applicable to this Amendment or any of the Loan Documents or the transactions contemplated hereby. 
  
 5.11 ENTIRE AGREEMENT. THE AGREEMENT, THIS AMENDMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS AND AGREEMENTS EXECUTED
AND DELIVERED IN CONNECTION WITH THE AGREEMENT OR THIS AMENDMENT REPRESENT THE FINAL AGREEMENTS AMONG THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO. 
  
 5.12. WAIVER OF JURY TRIAL. BORROWER AND BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH
COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS AGREEMENT. 
  
 [The Balance of This Page Intentionally Left Blank] 

 Executed as of the date first written above. 
  

			
	BORROWER:
	
	BESTWAY, INC.,
	a Delaware corporation
		
	By:	 	 /s/ Beth A. Durrett

	 	 	Chief Financial Officer
	
	BESTWAY RENTAL, INC.,
	a Tennessee corporation
		
	By:	 	 /s/ Beth A. Durrett

	 	 	Chief Financial Officer
	
	BANK:
	
	COMERICA BANK
		
	By:	 	 /s/ Elizabeth Gipson

	 	 	Corporate Banking Representative – Texas Division

 The undersigned hereby (i) consents and agrees to this Amendment and (ii) confirms and agrees that any subordination
agreement previously executed by the undersigned for the benefit of Lender is in full force and effect and is the legal, valid and binding obligation of the undersigned and is enforceable in accordance with its terms. 
  

					
	SUBORDINATING PARTY:
	
	O’DONNELL & MASUR, L.P.
		
	By:	 	O’Donnell & Masur,
	 	 	A General Partnership
			
	 	 	By:	 	 /s/ James A. O’Donnell

	 	 	 	 	Partner

 EXHIBIT A 
  

(SEE ATTACHED) 

 SECOND AMENDED AND RESTATED 
  
 REVOLVING CREDIT NOTE 
  
 Dallas, Texas 
  

			
	$11,500,000.00	 	August 13, 2004

  
 FOR VALUE RECEIVED,
BESTWAY, INC., a Delaware corporation, and BESTWAY RENTAL, INC., a Tennessee corporation, (each individually a “Maker” and jointly and severally, the “Makers”), jointly and severally promise to pay to the order of
COMERICA BANK (the “Bank”) at 1601 Elm Street, Dallas, Texas 75201, on May 31, 2007 (unless sooner due under the terms of the Loan Agreement, as that term is defined below) the principal sum of Eleven Million Five Hundred Thousand
and No/100 Dollars ($11,500,000.00) or, if less, the aggregate unpaid principal sum shown on the schedule(s) which, at the sole option of the Bank, may be attached hereto and made a part hereof. 
  
 The unpaid principal amount of this Note shall bear interest and be payable
as provided in that certain Second Amended and Restated Revolving Credit Loan Agreement, dated October 1, 2003, between the Makers and the Bank, as amended by (i) that certain First Amendment to Second Amended and Restated Revolving Credit Loan
Agreement, dated as of February 25, 2004, executed by and between the Makers and the Bank; and (ii) that certain Second Amendment to Second Amended and Restated Revolving Credit Loan Agreement, dated of even date herewith, executed by and between
the Makers and the Bank (as the same has been and may be further amended, restated, renewed, extended or modified from time to time, the “Loan Agreement”), and this Note is the Revolving Credit Note referred to in the Loan
Agreement. Interest shall be payable to the extent accrued on the first day of each calendar month, beginning September 1, 2004, until maturity (whether by acceleration or otherwise) and, from and after such maturity, on demand. 
  
 This Note is secured by the Collateral described in the Loan Agreement, which
Loan Agreement, as it may be amended from time to time, is by this reference incorporated herein and made a part hereof. Reference is hereby made to the Loan Agreement for a statement of its terms and conditions, including those conditions under
which this Note may be paid prior to its due date or its due date accelerated. Unless otherwise defined herein, capitalized terms herein shall have the meanings given such terms in the Loan Agreement. 
  
 If an Event of Default occurs and is not cured within the time, if any,
provided for by the Loan Agreement and is continuing, the Bank may exercise any one or more of the rights (including the right to accelerate this Note and any other Indebtedness under the Loan Agreement), and remedies granted by the Loan Agreement,
or given to a secured party under applicable law. 
  
 The Bank is
hereby granted a security interest in all property of each Maker at any time in the possession of the Bank and in all balances of deposit accounts of each Maker from time to 

 time with the Bank. If an Event of Default occurs and is not cured within the time, if any, provided for by the Loan
Agreement, then the Bank, upon the occurrence and continuance of any such Event of Default, or after the expiration of any time provided for cure, may at its option and without prior notice to the Makers declare the principal of and interest on this
Note to be immediately due and payable and may set off against the principal of and interest on this Note (i) any amount owing by the Bank to either Maker, (ii) any property of either Maker in the possession of the Bank, and (iii) any amount in any
deposit account of either Maker with the Bank. 
  
 No agreements,
conditions, provisions or stipulations contained in this Note or in any other agreement between the Makers and the Bank, or the occurrence of an Event of Default, or the exercise by the Bank of the right to accelerate the payment of the maturity of
principal and interest, or to exercise any option whatsoever contained in this Note or any other agreement between the Makers and the Bank, or the arising of any contingency whatsoever, shall entitle the Bank to collect, in any event, interest
exceeding the maximum rate of nonusurious interest allowed from time to time by applicable state or federal laws as now or as may hereinafter be in effect (the “Maximum Legal Rate”) and in no event shall the Makers be
obligated to pay interest exceeding such Maximum Legal Rate, and all agreements, conditions or stipulations, if any, which may in any event or contingency whatsoever operate to bind, obligate or compel the Makers to pay a rate of interest exceeding
the Maximum Legal Rate shall be without binding force or effect, at law or in equity, to the extent only of the excess of interest over such Maximum Legal Rate. In the event any interest is charged in excess of the Maximum Legal Rate (the
“Excess”), the Makers acknowledge and stipulate that any such charge shall be the result of an accidental and bona fide error, and such Excess shall be, first, applied to reduce the principal of any obligations due, and,
second, returned to the Makers, it being the intention of the parties hereto not to enter at any time into an usurious or otherwise illegal relationship. The parties hereto recognize that with fluctuations in the prime commercial interest rate from
time to time announced by the Bank such an unintentional result could inadvertently occur. By the execution of this Note, the Makers covenant that (a) the credit or return of any Excess shall constitute the acceptance by the Makers of such Excess,
and (b) the Makers shall not seek or pursue any other remedy, legal or equitable, against the Bank based, in whole or in part, upon the charging or receiving of any interest in excess of the Maximum Legal Rate. For the purpose of determining whether
or not any Excess has been contracted for, charged or received by the Bank, all interest at any time contracted for, charged or received by the Bank in connection with the Makers’ obligations shall be amortized, prorated, allocated and spread
in equal parts during the entire term of this Note. If at any time the rate of interest payable hereunder shall be computed on the basis of the Maximum Legal Rate, any subsequent reduction in the Contract Rate (as defined in the Loan Agreement)
shall not reduce such interest thereafter payable hereunder below the amount computed on the basis of the Maximum Legal Rate until the aggregate amount of such interest accrued and payable under this Note equals the total amount of interest which
would have accrued if such interest had been at all times computed solely on the basis of the Contract Rate (as defined in the Loan Agreement). 
  
 Unless preempted by federal law, the rate of interest from time to time in effect hereunder shall not exceed the applicable weekly ceiling from time to
time in effect under Chapter 303 of the Texas Finance Code, as amended. 

 The provisions of this Note governing interest shall be deemed to be incorporated into every document or
communication relating to the obligations which sets forth or prescribes any account, right or claims or alleged account, right or claim of the Bank with respect to the Makers (or any other obligor in respect of the obligations), whether or not any
provisions of this Note is referred to therein. All such documents and communications and all figures set forth therein shall, for the sole purpose of computing the extent of the obligations asserted by the Bank thereunder, be automatically
recomputed by the Makers or any other obligor, and by any court considering the same, to give effect to the adjustments or credits required by this Note. 
  
 If the applicable state or federal law is amended in the future to allow a greater rate of interest to be charged under this Note than is presently
allowed by applicable state or federal law, then the limitation of interest hereunder shall be increased to the maximum rate of interest allowed by applicable state or federal law, as amended, which increase shall be effective hereunder on the
effective date of such amendment, and all interest charges owing to the Bank by reason thereof shall be payable upon demand. 
  
 The provisions of Chapter 346 of the Texas Finance Code, as amended, are specifically declared by the parties hereto not to be applicable to this Note or
any of the other agreements executed in connection herewith or therewith or to the transactions contemplated hereby or thereby. 
  
 The Makers and all guarantors and endorsers (i) waive presentment, demand, protest and notice of dishonor, (ii) agree that no extension or indulgence to
the Makers or release or nonenforcement of any security, whether with or without notice, shall affect the obligations of any guarantor or endorser, and (iii) agree to reimburse the holder of this Note for any and all costs and expenses (including,
but not limited to, reasonable attorney fees) incurred in collecting or attempting to collect any and all principal of and interest on this Note. 
  
 This Note is given in renewal and extension (but not as a novation) of that certain First Amended and Restated Revolving Credit Note dated to be effective
as of February 25, 2004, in the original principal amount of $11,500,000.00, executed by Makers and payable to the order of the Bank, and this Note is entitled to all benefits of all Collateral securing such prior note. 
  
 THE UNDERSIGNED AND THE BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A
CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE
EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS NOTE OR THE INDEBTEDNESS. 
  
 THIS WRITTEN LOAN AGREEMENT (AS DEFINED BY SECTION 26.02 OF THE TEXAS BUSINESS AND COMMERCE CODE) REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY 

 EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES. 
  
 (SIGNATURE PAGE IMMEDIATELY
FOLLOWS) 

 IN WITNESS WHEREOF, the Makers have executed this Note as of the 13th day of August, 2004. 
  

			
	BESTWAY, INC.,
	a Delaware corporation
		
	By:	 	  

	 	 	Beth A. Durrett
	 	 	Chief Financial Officer
	
	BESTWAY RENTAL, INC.,
	a Tennessee Corporation
		
	By:	 	  

	 	 	Beth A. Durrett
	 	 	Chief Financial OfficerExtension Agreement for the Second Amended and Restated Promissory Note

 Exhibit 10.2 
  
 EXTENSION AGREEMENT 
  
 August 13, 2004 
  
 Reference is made to that certain Second Amendment and Restated Promissory Note dated October 26, 2001 (the “Note”) between O’Donnell &
Masur, L.P. (the “Payee”) and Bestway, Inc. (the “Maker”). All capitalized terms used in the agreement shall have the meanings given such terms in the Note, unless otherwise defined herein. 
  
 Pursuant to the Note, the current maturity is May 31, 2006. The Payee and the
Maker desire to extend the Note maturity until May 31, 2007. Therefore, in consideration of the mutual reliance on the parties hereto, the Payee and the Maker agree that (1) the maturity of the Note is extended to May 31, 2007, unless sooner
accelerated pursuant to the provisions of the Note and that (2) all terms and provisions of the Note shall remain in full force and effect and shall govern the rights and obligations of the Payee and the Maker. 
  
 EXECUTED as of August 13, 2004. 
  

			
	O’DONNELL & MASUR, L.P.
		
	By:	 	 /s/ James A. O’Donnell

	 	 	Partner
	
	BESTWAY, INC.
		
	By:	 	 /s/ Beth A. Durrett

	 	 	Chief Financial Officer

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