Document:

Exh10.04-Form of Performance Share Award Notice to Mark J Costa

    EXHIBIT
      10.04

    
 PERFORMANCE
      SHARE AWARD SUBPLAN

    TO
      MARK J. COSTA, SENIOR VICE-PRESIDENT, 

    CORPORATE
      STRATEGY AND MARKETING

    UNDER
      THE 2002 OMNIBUS LONG-TERM COMPENSATION PLAN

    (2007-2009
      PERFORMANCE PERIOD)

    

    

    

    

    

    

    

    

    

    

    

    

    EASTMAN
      CHEMICAL COMPANY

     

    

    

    
      
        
          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    PERFORMANCE
      SHARE AWARD SUBPLAN

    TO
      MARK J. COSTA, SENIOR VICE-PRESIDENT,

    CORPORATE
      STRATEGY AND MARKETING

    UNDER
      THE 2002 OMNIBUS LONG-TERM COMPENSATION PLAN

    (2007-2009
      PERFORMANCE PERIOD)

    

    

    TABLE
      OF CONTENTS

    

    Section TitlePage

    

    Section
      1. Background
      1

    

    Section
      2. Definitions
      1

    

    Section
      3. Administration
      2

    

    Section
      4. Eligibility
      3

    

    Section
      5. Form of Awards
      3

    

    Section
      6. Size of Awards
      3

    

    Section
      7. Composition of Comparison Group
      4

    

    Section
      8. Preconditions to Receipt of an Award
      4

    

    Section
      9. Manner and Timing of Award Payments
      5

    

    Section
      10. No Rights as Stockholder
      6

    

    Section
      11. Application of Plan
      6

    

    Section
      12. Adjustment of Actual Grant Amount
      7

    

    Section
      13. Amendments
      7

    

    Exhibit
      A
8

    

    Exhibit
      B
9

    

    

    

    
      
        
          

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    PERFORMANCE
      SHARE AWARD SUBPLAN

    TO
      MARK J. COSTA, SENIOR VICE-PRESIDENT,

    CORPORATE
      STRATEGY AND MARKETING

    UNDER
      THE 2002 OMNIBUS LONG-TERM COMPENSATION PLAN

    (2007-2009
      PERFORMANCE PERIOD)

    

    Section
      1. Background.
      Under
      Section 11 of the Eastman Chemical Company 2002 Omnibus Long-Term Compensation
      Plan (the "Plan"), the "Committee" (as defined in the Plan), may, among other
      things, award shares of the $.01 par value common stock ("Common Stock") of
      Eastman Chemical Company (the "Company") to "Employees" (as defined in the
      Plan), and such awards may take the form of performance shares, which are
      contingent upon the attainment of certain performance objectives during a
      specified period, and subject to such other terms, conditions, and restrictions
      as the Committee deems appropriate. The purpose of this Performance Share Award
      Subplan (this "Subplan") is to set forth the terms of the grant of performance
      shares for the 2007-2009 Performance Period specified herein, effective as
      of
      January 1, 2007 (the "Effective Date").

    

    Section
      2. Definitions.

    

    
      	
              (a)

            	
              The
                following definitions shall apply to this
                Subplan:

            

    

    

    
      	(i)  	
              "Actual
                Grant Amount" means the number of shares of Common Stock to which
                a
                participant is entitled under this Subplan, calculated in accordance
                with
                Section 6 of this Subplan.

            

    

    

    
      	(ii)  	
              “Award
                Amount” means the performance shares awarded to the participant under this
                Subplan at the beginning of the Performance
                Period.

            

    

    

    
      	 	
                    
                  (iii)

            	
              "Award
                Payment Date" means the date the Compensation Committee approves
                the
                payout of Common Stock covered by an award under this Subplan to
                a
                participant.

            

    

    

    
      	 	
                      
                (iv)

            	
              "Comparison
                Group" is the group of companies comprising the “Materials Sector” from
                Standard and Poor’s Super Composite 1500 Index, identified as Global
                Industry Classification Standard (“GICS”) 15.

            

    

    

    
      	 	
                           
                (v) 

            	
              “Cost
                of Capital” reflects the cost of debt and the cost of equity, expressed as
                a percentage, reflecting the percentage of interest charged on debt
                and
                the percentage of expected return on
                equity.

            

    

    

    
      	 	
                          
                (vi)

            	
              “Earnings
                from Continuing Operations” shall be defined as the total sales of the
                Company minus the costs of all operations of any nature used to produce
                such sales, including taxes, plus after-tax interest associated with
                the
                Company's capital debt.

            

    

    

    
      	(vii)  	
              "Maximum
                Deductible Amount" means the maximum amount deductible by the Company
                under Section 162(a), taking into consideration the limitations under
                Section 162(m), of the Internal Revenue Code of 1986, as amended,
                or any
                similar or successor provisions
                thereto.

            

    

    

    
      	
            	                      
              (viii)	
              “Participation
                Date” means October 31, 2006. 

            

    

     

    
      	
            	                         
              (ix)	
              “Performance
                Period" means January 1, 2007 through December 31,
                2009.

            

    

    

    
      	
            	                          
              (x)	
              “Performance
                Year” means one of the three calendar years in the Performance
                Period.

            

    

    

    
      	
            	                        
              (xi)	
              “Return
                on Capital” shall mean the return produced by funds invested in the
                Company and shall be determined as Earnings from Continuing Operations,
                as
                defined in Section 2.a.(vi), divided by the Average Capital Employed.
                Average Capital Employed shall be derived by adding the Company's
                capital
                debt plus equity at the close of the last day of the year preceding
                the
                Performance Year, to the Company's capital debt plus equity at the
                close
                of the last day of the present Performance Year, with the resulting
                sum
                being divided by two. Capital debt is defined as the sum of borrowing
                by
                the Company due within one year and long-term borrowing, as designated
                on
                the Company's balance sheet. The resulting ratio shall be multiplied
                by
                One Hundred (100) in order to convert such to a percentage. Such
                percentage shall be calculated to the third place after the decimal
                point
                (i.e., xx.xxx%), and then rounded to the second place after the decimal
                point (i.e., xx.xx%).

            

    

    

    
      	 	
                     
                (xii)

            	
              "Target
                Award Range" means, with respect to any eligible Employee, the number
                of
                performance shares within the range specified on Exhibit A hereto
                for the
                Salary Grade applicable to such
                Employee.

            

    

     

    
      	 	
                    
                (xiii)

            	
              “TSR”
                means total stockholder return, as reflected by the sum of (A) change
                in
                stock price (measured as the difference between (I) the average of
                the
                closing prices of a company’s common stock on the New York Stock Exchange,
                or of the last sale prices or closing prices of such stock on another
                national trading exchange, as applicable, in the period beginning
                on the
                tenth trading day preceding the beginning of the Performance Period
                and
                ending on the tenth trading day of the Performance Period and (II)
                the
                average of such closing or last sale prices for such stock in the
                period
                beginning on the tenth trading day preceding the end of the Performance
                Period and ending on the tenth trading day following the end of the
                Performance Period) plus (B) dividends declared, assuming reinvestment
                of
                dividends, and expressed as a percentage return on a stockholder’s
                hypothetical investment.

            

    

    

    
      	
              (b)

            	
              Any
                capitalized terms used but not otherwise defined in this Subplan
                shall
                have the respective meanings set forth in the Plan.
                

            

    

    

    Section
      3. Administration.
      This
      Subplan shall be administered by the Committee. The Committee shall have
      authority to interpret this Subplan, to prescribe rules and regulations relating
      to this Subplan, and to take any other actions it deems necessary or advisable
      for the administration of this Subplan, and shall retain all general authority
      granted to it under Section 3 of the Plan. At the end of the Performance
      Period, the Committee shall approve Actual Grant Amounts awarded to participants
      under this Subplan. 

    

    Section
      4. Eligibility.
      The
      Employees who are eligible to participate in this Subplan are those Employees
      who, as of the Participation Date, are at Salary Grade 120 and above. These
      Salary Grades generally include Employees who, as of the Participation Date,
      have been designated as "officers" of the Company for purposes of Section 16
      of
      the Exchange Act, and held positions with the Company considered carrying
      responsibilities and functions generally associated with a vice-president-level
      position. Employees who are promoted during the Performance Period to a position
      that would meet the above criteria, but who do not hold such position as of
      the
      Participation Date, are not
      eligible
      to participate in this Subplan. 

    

    Section
      5. Form of Awards.
      Subject
      to the terms and conditions of the Plan and this Subplan, Awards under this
      Subplan shall be paid in the form of unrestricted shares of Common Stock, except
      for conversions to cash and deferrals under Section 9 of this Subplan, and
      except that if a participant is entitled to any fraction of a share of Common
      Stock, as a result of Section 10 of this Subplan or otherwise, then in lieu
      of
      receiving such fraction of a share, the participant shall be paid a cash amount
      representing the market value, as determined by the Committee, of such fraction
      of a share at the time of payment.

    

    Section
      6. Size of Awards.
      

    

      
        	(a)	 	
                Target
                  Award Range.
                  Exhibit A hereto shows by Salary Grade the Target Award Range.
                  The Salary
                  Grade to be used in determining the size of any Award Amount to
                  a
                  participant under this Subplan shall be the Salary Grade applicable
                  to the
                  position held by the participant on the Participation Date. The
                  actual
                  size of the Award Amount to the participant shall be determined
                  based on
                  an assessment by his or her senior management of the participant’s past
                  performance and potential for contributions to the Company’s future long
                  term success. Based on this assessment, the participant may receive
                  no
                  award, the target award amount, or any amount within the Target
                  Award
                  Range to the nearest 10 performance shares. Each member of senior
                  management will have a performance share budget, based on the cumulative
                  award targets for their reports, which must be balanced for their
                  organizations. 

              

      

    

     

    
      	(b)       
                	
              Stock
                Option Grants for Employees Named After the Participation
                Date.
                Employees who are hired into, or promoted to a Salary Grade 120 or
                above
                position after the Participation Date but prior to the Performance
                Period,
                will be eligible to receive an additional number of options to purchase
                Company stock as of the next scheduled meeting of the Compensation
                Committee following their hire or promotion. The additional grant
                of
                options will be determined based on several factors, including timing
                of
                the promotion or hire, number of options received in the previous
                assignment, stock option target ranges for the employee’s new salary
                grade, and considerations of performance assessment. The amount of
                the
                award will be recommended by the Company’s Chief Executive Officer for
                approval by the Compensation Committee for officers of the Company
                for
                purposes of Section 16 of the Exchange Act. For non-Section 16 employees,
                the amount of the award will be approved by the Chief Executive Officer.
                The option grant price will be the closing price of Company Common
                Stock
                on the New York Stock Exchange on the meeting date of the Compensation
                Committee.

            

    

    

    
      	(c)        
               	
              Actual
                Grant Amount.
                Subject to the Committee’s authority to adjust the Actual Grant Amount
                described in Section 12, the Actual Grant Amount awarded to the
                participant at the end of the Performance Period is determined by
                applying
                a multiplier to the participant’s Award Amount. The multiplier shall be
                determined by comparing Company performance relative to two
                measures:

            

    

    

    
      	(i)  	
              The
                Company's TSR during the Performance Period relative to the TSRs
                of the
                companies in the Comparison Group during the Performance
                Period.
                The Company and each company in the Comparison Group shall be ranked
                by
                TSR, in descending order, with the company having the highest TSR
                during
                the Performance Period being ranked number one. The Comparison Group
                shall
                further be separated into quintiles (first 20%, second 20%, etc.)
                and the
                Company's position, in relation to the Comparison Group, shall be
                expressed as a position in the applicable quintile ranking;
                and

            

    

    

    
      	 	 	
                   
                (ii) 

            	
              The
                arithmetic average, for each of the Performance Years during the
                Performance Period, of the Company’s average Return on Capital minus a
                Return on Capital target.
                The Return on Capital target will be determined by the Committee.
                 

            

    

    

    
      	
            	 	
              An
                award multiplier table is shown in Exhibit B. The award multiplier
                is
                based on the Company’s performance relative to its quintile ranking
                relative to the Comparison Group, and its average Return on Capital
                relative to a target during the Performance Period. The award multipliers
                range from 3.0 (i.e. 300%), if the Company's TSR is in the top performing
                quintile (top 20%) of companies in the Comparison Group, and the
                average
                Return on Capital minus the target Return on Capital is greater than
                10
                percentage points, to 0.0 (with no shares of Common Stock being delivered
                to participants under this Subplan), if the Company does not meet
                certain
                levels of performance relative to the two measures.
                

            

    

    

    Section
      7. Composition of Comparison Group.
      The
      Comparison Group is composed of companies relevant for purposes of TSR
      comparisons under this Subplan. However, during the Performance Period, a
      company in the Comparison Group may be dropped from the Comparison Group if
      a
      company's common stock ceases to be publicly traded on a national stock exchange
      or market; or a company is a party to a significant merger, acquisition, or
      other reorganization. Under these, or similar circumstances, the company or
      companies may be removed from the Comparison Group, and may be replaced with
      another company or companies by Standard & Poor’s, consistent with their
      established criteria for selection of companies for the Comparison Group. In
      any
      case where the Comparison Group ceases to exist, or is otherwise determined
      to
      no longer be appropriate as the basis for a measure under this Subplan, the
      Committee may designate a replacement Comparison Group. In any such case, the
      Committee shall have authority to determine the appropriate method of
      calculating the TSR of such former and/or replacement Comparison Group, whether
      by complete substitution of the replacement Comparison Group (and disregard
      of
      the former Comparison Group) over the entire Performance Period or by pro rata
      calculations for each Comparison Group or otherwise. 

    

    Section
      8. Preconditions to Receipt of an Award.

    

    
      	
              (a)

            	
              Continuous
                Employment.
                Except as specified in paragraphs (b) and (c) below, to remain eligible
                for an Award under this Subplan, an eligible Employee must remain
                continuously employed with the Company or a Subsidiary at all times
                from
                the Effective Date through the Award Payment
                Date.

            

    

    

    
      	
              (b)

            	
              Death,
                Disability, Retirement, or Termination for an Approved Reason Before
                the
                Award Payment Date.
                If
                a participant's employment with the Company or a Subsidiary is terminated
                due to death, disability, retirement, or any approved reason as determined
                by the Committee prior to the Award Payment Date, the participant
                shall
                receive, subject to the terms and conditions of the Plan and this
                Subplan,
                an Award representing a prorated portion of the Actual Grant Amount
                to
                which such participant otherwise would be entitled, with the precise
                amount of such Award to be determined by multiplying the Actual Grant
                Amount by a fraction, the numerator of which is the number of full
                calendar months employed in the Performance Period from the Effective
                Date
                through and including the effective date of such termination, and
                the
                denominator of which is 36 (the total number of months in the Performance
                Period). 

            

    

    

    
      	
              (c)

            	
              Termination
                Without Cause or for Good Reason Before the Award Payment
                Date.
                If
                a participant's employment with the Company or a Subsidiary is terminated
                without "Cause" or for "Good Reason" (as such terms are defined in
                the
                participants' Employment Agreement dated May 4, 2006) prior to the
                Award
                Payment Date, the participant shall receive, subject to the terms
                and
                conditions of the Plan and this Subplan, within 30 days of termination
                (or
                such other date as may be required under Internal Revenue Code Section
                409A), shares of Common Stock underlying outstanding performance
                shares
                (as if all performance objectives with respect thereto had been met
                at a
                level of 100%) on a pro rata basis based upon the number of full
                calendar
                months employed in the Performance Period from the Effective Date
                through
                and including the effective date of such
                termination.

            

    

    

    Section
      9. Manner and Timing of Award Payments.

    

    
      	
              (a)

            	
              Timing
                of Award Payment.
                Except for deferrals under Sections 9(c) and 9(d), if any Awards
                are
                payable under this Subplan, the payment of such Awards to eligible
                Employees shall be made as soon as is administratively practicable
                after
                the end of the Performance Period and final approval by the
                Committee.

            

    

    

    
      	
              (b)

            	
              Tax
                Withholding.
                The Company may withhold or require the grantee to remit a cash amount
                sufficient to satisfy federal, state, and local taxes (including
                the
                participant’s FICA obligation) required by law to be withheld. Further,
                either the Company or the grantee may elect to satisfy the withholding
                requirement by having the Company withhold shares of common stock
                having a
                Fair
                Market
                Value
                on the date the tax is to be determined equal to the minimum statutory
                total tax which could be imposed on the
                transaction.

            

    

    

    
      	
              (c)

            	
              Deferral
                of Award in Excess of the Maximum Deductible Amount.
                If payment of the Award would, or could in the reasonable estimation
                of
                the Committee, result in the participant's receiving compensation
                in
                excess of the Maximum Deductible Amount in a given year, then such
                portion
                (or all, as applicable) of the Award as would, or could in the reasonable
                estimation of the Committee, cause such participant to receive
                compensation from the Company in excess of the Maximum Deductible
                Amount
                may, at the sole discretion of the Committee, be converted into the
                right
                to receive a cash payment, which shall be deferred until after the
                participant retires or otherwise terminates employment with the Company
                and its Subsidiaries, provided that such deferral is compliant with
                the
                requirements of Internal Revenue Code Section 409A and Treasury
                Regulations and guidance
                thereunder.

            

    

    

    
      	
              (d)
                

            	
              Election
                to Defer the Award.
                Any participant in this Subplan may elect to defer the Award until
                after
                the participant retires or otherwise terminates employment with the
                Company and its Subsidiaries under the terms and subject to the conditions
                of the Eastman Executive Deferred Compensation Plan, as the same
                now
                exists or may be amended hereafter (the "EDCP"). If the participant
                chooses to defer the Award, the Award shall be converted into the
                right to
                receive a cash payment.

            

    

    

    
      	(e)	
               

            	
              Award
                Deferral to the EDCP.
                In the event that all or any portion of an Award is converted into
                a right
                to receive a cash payment pursuant to Sections 9(c) or 9(d), except
                as
                otherwise provided in this Section with respect to Section 16 insiders,
                an
                amount representing the Fair Market Value, as of the date the Common
                Stock
                covered by the Award otherwise would be delivered to the participant,
                of
                the Actual Grant Amount (or the deferred portion thereof) will be
                credited
                to the Stock Account of the EDCP, and hypothetically invested in
                units of
                Common Stock. Notwithstanding
                the foregoing, for each Section 16 insider electing to defer the
                Award,
                the deferrable amount, when initially credited to the participant's
                EDCP
                Account, shall be held in a participant's Interest Account until
                the next
                date that dividends are paid on Common Stock, and on such date the
                deferrable amount that would have been initially credited to the
                participant's Stock Account but for this sentence shall be transferred,
                together with allocable interest thereon, to the participant's Stock
                Account, subject to provisions set forth in the EDCP. Thereafter,
                such amount shall be treated in the same manner as other investments
                in
                the EDCP and shall be subject to the terms and conditions
                thereof.

            

    

    

    Section
      10. No Rights as Stockholder.
      No
      certificates for shares of Common Stock shall be issued under this Subplan
      nor
      shall any participant have any rights as a stockholder as a result of
      participation in this Subplan, until the Actual Grant Amount has been determined
      and such participant has otherwise become entitled to an Award under the terms
      of the Plan and this Subplan. In particular, no participant shall have any
      right
      to vote or to receive dividends on any shares of Common Stock under this
      Subplan, until certificates for such shares have been issued as described above;
      provided, however, that if payment of all or any portion of an Award under
      this
      Subplan has been deferred pursuant to Section 9 of this Subplan or
      otherwise, but such Award otherwise has become payable hereunder, then during
      the period during which payment is deferred, the deferred Award shall be
      credited with additional units of Common Stock, and (if applicable) fractions
      thereof, based on any dividends declared on the Common Stock, in accordance
      with
      the terms of the EDCP.

    

    Section
      11. Application of Plan.
      The
      provisions of the Plan shall apply to this Subplan, except to the extent that
      any such provisions are inconsistent with specific provisions of this Subplan.
      In particular, and without limitation, Section 11 (relating to performance
      shares), Section 12 (relating to qualification of Awards as "performance-based"
      under Code Section 162(m)), Section 17 (relating to nonassignability),
      Section 18 (relating to adjustment of shares available), Section 19 (relating
      to
      withholding taxes), Section 20 (relating to noncompetition and confidentiality),
      Section 21 (relating to regulatory approvals and listings), Section 24 (relating
      to the governing law), Section 25 (relating to changes in ownership), Section
      26
      (relating to changes in control), Section 27 (relating to no rights to
      employment or participation), Section 28 (relating to no rights, title, or
      interest in Company assets), and Section 29 (relating to securities laws) shall
      apply to this Subplan. 

    

    Section
      12. Adjustment of Actual Grant Amount.
      The
      Committee may, in its sole discretion, adjust the Actual Grant Amount to reflect
      overall Company performance and business and financial conditions. 

    

    Section
      13. Amendments.
      The
      Committee may, from time to time, amend this Subplan in any manner.

    

    

    EXHIBIT
      A

    

    

    Eastman
      Chemical Company

    Performance
      Share Award Grant Table

    2007-2009
      Cycle

    

    

    

    

    ON
      FILE
      IN GLOBAL COMPENSATIION

    

    
 

    

    EXHIBIT
      B

    

    

    Award
      Multiplier Table

    

    
      	
              Eastman
                TSR Relative to Comparison Companies

            	
               

              Differential
                from Target Return on Capital

            
	 	
              <-7%

            	
              -5%
                to 

              -7%

            	
              -3
                to 

              -4.99%

            	
              -1
                to 

              -2.99%

            	
              -0.99
                to +1%

            	
              +1.01
                to +3%

            	
              +3.01
                to +5%

            	
              +5.01
                to +7%

            	
              +7.01
                to +10%

            	
              >10%

            
	
              0-19%(
                5th
                quintile)

            	
              0.0

            	
              0.0

            	
              0.0

            	
              0.0

            	
              0.6

            	
              0.8

            	
              1.0

            	
              1.3

            	
              1.6

            	
              1.9

            
	
              20-39%(4th
                quintile)

            	
              0.0

            	
              0.0

            	
              0.0

            	
              0.4

            	
              0.8

            	
              1.0

            	
              1.3

            	
              1.6

            	
              1.9

            	
              2.2

            
	
              40-59%(3rd
                quintile)

            	
              0.0

            	
              0.0

            	
              0.4

            	
              0.6

            	
              1.0

            	
              1.3

            	
              1.6

            	
              1.9

            	
              2.2

            	
              2.5

            
	
              60-79%(2nd
                quintile)

            	
              0.0

            	
              0.4

            	
              0.6

            	
              1.0

            	
              1.3

            	
              1.6

            	
              1.9

            	
              2.2

            	
              2.5

            	
              2.8

            
	
              80-99%(1st
                quintile)

            	
              0.0

            	
              0.6

            	
              0.8

            	
              1.3

            	
              1.6

            	
              1.9

            	
              2.2

            	
              2.5

            	
              2.8

            	
              3.0Exhibit 10.1 (5th Amendment to Revolving Credit and Letter of Credit Loan Agreement)

    FIFTH
      AMENDMENT TO REVOLVING CREDIT AND

    LETTER
      OF CREDIT LOAN AGREEMENT

     

    THIS
      FIFTH AMENDMENT TO REVOLVING CREDIT AND LETTER OF CREDIT LOAN AGREEMENT (this
      “Amendment”)
      is
      entered into October 27, 2006, by and between, U.S. XPRESS ENTERPRISES, INC.,
      a
      Nevada corporation (the “Borrower”),
      and
      SUNTRUST BANK, BANK OF AMERICA, N.A., LASALLE BANK NATIONAL ASSOCIATION, BRANCH
      BANKING AND TRUST COMPANY, NATIONAL CITY BANK, REGIONS FINANCIAL CORPORATION
      (collectively the “Lenders”),
      and
      SUNTRUST BANK, in its capacity as Administrative Agent for the Lenders (the
      “Administrative
      Agent”).

     

    RECITALS:

     

    A.  The
      Borrower, Administrative Agent and the Lenders previously entered into that
      certain Revolving Credit and Letter of Credit Loan Agreement dated October
      14,
      2004 (as previously amended and as it may be amended from time to time, the
      “Credit Agreement”).

     

    B.  The
      Borrower, Administrative Agent and the Lenders desire to further amend the
      Credit Agreement to: (i) amend the Lease Adjusted Leverage Ratio in Section
      6.1
      of the Credit Agreement; (ii) increase the amount of Investments allowable
      under
      Section 7.4(m); and (iii) increase the amount of allowable Restricted Payments
      under Section 7.5 of the Credit Agreement.

     

    C.  Capitalized
      terms not otherwise defined herein shall have the meanings ascribed to such
      terms in the Credit Agreement.

     

    NOW,
      THEREFORE, in consideration of the premises and for other good and valuable
      consideration, the receipt and adequacy of which is hereby acknowledged, the
      Borrower, Administrative Agent and the Lenders executing this Amendment agree
      as
      follows:

     

    1.  Amendment
      to Section 6.1.
      Section
      6.1 of the Credit Agreement concerning “Lease Adjusted Leverage Ratio” is
      deleted and the following is substituted in lieu thereof:

     

    Section
      6.1 Lease
      Adjusted Leverage Ratio.
      The
      Borrower will have a Lease Adjusted Leverage Ratio,
      calculated on a trailing four quarter basis, of not greater than the following
      during the measurement periods set forth below:

     

    
      	
              Measurement
                Period

            	
              Ratio

            
	
              Fiscal
                Quarter Ending December 31, 2006 through the Fiscal Quarter Ending
                March
                31, 2007

            	
              3.50
                to 1.00

            
	
              Fiscal
                Quarter Ending June 30, 2007

            	
              3.25
                to 1.00

            
	
              Fiscal
                Quarter Ending September 30, 2007 and each Fiscal Quarter
                thereafter

            	
              3.00
                to 1.00

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.  Amendment
      to Section 7.4.
      Section
      7.4 of the Credit Agreement concerning “Investments, Loans, Etc.” is amended by
      deleting subsection (m) thereof, and the following is substituted in lieu
      thereof:

     

    (m)
      Other
      Investments which in the aggregate do not exceed $20,000,000 during the term
      hereof.

     

    3.  Amendment
      to Section 7.5.
      Section
      7.5 of the Credit Agreement concerning “Restricted Payments” is deleted and the
      following is substituted in lieu thereof:

     

    7.5 Restricted
      Payments. The
      Borrower will
      not, and
      will
      not permit its Subsidiaries to, declare
      or make, or agree to pay or make, directly or indirectly, any dividend on any
      class of its stock, or make any payment on account of, or set apart assets
      for a
      sinking or other analogous fund for, the purchase, redemption, retirement,
      defeasance or other acquisition of, any shares of common stock or Indebtedness
      subordinated to the Obligations of the Borrower or any options, warrants, or
      other rights to purchase such common stock or such Indebtedness, whether now
      or
      hereafter outstanding (each, a “Restricted
      Payment”),
      except for (i) dividends payable by the Borrower solely in shares of any class
      of its common stock; (ii) Restricted Payments made by any Subsidiary to the
      Borrower or to another Subsidiary Loan Party; and (iii) from the Closing Date,
      the Borrower may make stock redemptions not to exceed $30,000,000 in the
      aggregate
      during
      the term hereof. Notwithstanding any provision herein to the contrary, no
      payments under subsection (i) or (iii) may be made if a Default or Event of
      Default has occurred and is continuing at the time such dividend is paid or
      redemption is made.

     

    4.  Conditions.
      The
      effectiveness of this Amendment is subject to the satisfaction of the following
      conditions precedent:

     

    (a)  The
      Lenders shall have received this Amendment duly executed by the Borrower and
      the
      Guarantors;

     

    (b)  The
      representations and warranties in the Loan Documents, as amended hereby, shall
      be true and correct in all material respects as of the date hereof as if made
      on
      the date hereof, except for such representations and warranties limited by
      their
      terms to a specific date;

     

    (c)  No
      Default shall exist; and

     

    (d)  The
      Borrower shall pay, concurrently with the execution hereof, the amendment fee
      to
      the Lenders consenting to this Amendment. Such fee shall be paid to the
      Administrative Agent for payment to such consenting Lenders on a pro rata
      basis.

     

    5.  Payment
      of Expenses.
      The
      Borrower agrees to pay or reimburse the Administrative Agent for all its
      reasonable out-of-pocket costs and expenses incurred in connection with the
      preparation and execution of this Amendment.

     

    6.  Counterparts.
      This
      Amendment may be executed by one or more of the parties hereto on any number
      of
      separate counterparts, and all of said counterparts taken together shall be
      deemed to constitute one and the same instrument. 

     

    7.  Severability;
      Headings.
      Any
      provision of this Amendment which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability, without invalidating the remaining
      provisions hereof, and any such prohibition or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction. The section and subsection headings used in this Amendment
      are for convenience of reference only and are not to affect the construction
      hereof or to be taken into consideration in the interpretation
      hereof.

     

    8.  Continuing
      Effect Upon Other Documents.
      This
      Amendment shall not constitute an amendment or waiver of any other provision
      of
      the Credit Agreement not expressly referred to herein and, except to the extent
      that the Credit Agreement has been amended hereby, shall not be construed as
      a
      waiver or consent to any further or future action on the part of the Borrower
      that would require a waiver or consent of the Lenders or the Administrative
      Agent. Except as expressly amended, modified or supplemented hereby, the
      provisions of the Credit Agreement are and shall remain in full force and
      effect.

     

    9.  GOVERNING
      LAW.
      THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS
      AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
      WITH, THE LAWS OF THE STATE OF NEW YORK.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    ENTERED
      INTO as of the date first above written.

     

    BORROWER:

    

    U.S.
      XPRESS ENTERPRISES, INC.

    

    By:
      /s/
      Ray M. Harlin 

    

    Title:
      Assistant Secretary 

    

    LENDERS:

    

    SUNTRUST
      BANK

    as
      Administrative Agent, as an Issuing Bank,

    as
      Swingline Lender and as a Lender

    

    By:
      /s/William H. Crawford 

    

    Title:
      Director 

    

    

    

    

    

    

    

    [additional
      signature lines continued on following pages]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    BANK
      OF
      AMERICA, N.A., as Issuing Bank for Existing Letters of Credit and as a
      Lender

    

    By:
      /s/Alan R. Buck 

    

    Title:
      Vice
      President 

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LASALLE
      BANK NATIONAL ASSOCIATION

    

    By:
      /s/Nick T. Weaver    

    

    Title:
      Senior Vice President   

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    BRANCH
      BANKING AND TRUST COMPANY

    

    By:
      /s/R.
      Andrew Beam    

    

    Title:
      Senior Vice President   

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    NATIONAL
      CITY BANK

    

    By:
      /s/John H. Ankerman   

    

    Title:
      Senior Vice President   

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    REGIONS
      FINANCIAL CORPORATION

    

    By:
      /s/Elaine B. Passman   

    

    Title:
      Vice
      President    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

     

    Guarantor
      Consent

     

    Each
      of
      the undersigned Guarantors: (i) consent and agree to this Amendment and
      (ii) agree that the Loan Documents to which it is a party shall remain in
      full force and effect and shall continue to be the legal, valid and binding
      obligation of such Guarantor enforceable against it in accordance with their
      respective terms.

     

    GUARANTORS:

    

    U.S.
      Xpress, Inc.

    U.S.
      Xpress Leasing, Inc.

    Xpress
      Air, Inc.

    Xpress
      Company Store, Inc.

    Xpress
      Global Systems, Inc.

    Xpress
      Colorado, Inc.

    Cargo
      Movement Corp.

    Xpress
      Waiting, Inc.

    Colton
      Xpress, LLC

    Associated
      Developments, LLC

    Total
      Transportation Holdings, Inc.

    Total
      Logistics, Inc. 

    Transportation
      Investments, Inc.

    Total
      Transportation of Mississippi LLC, 

    Transportation
      Assets Leasing, Inc.

    TAL
      Real
      Estate, LLC 

    TAL
      Power
      Equipment #1, LLC

    TAL
      Van
      #1, LLC

    TAL
      Furniture and Equipment, LLC 

    TAL
      Marine, Inc.

    TAL
      Aviation, LLC

    TAL
      Power
      Equipment #2, LLC

    ATS
      Acquisition Holding Co.

    Arnold
      Transportation Services, Inc.

    

     

    By: /s/Ray
      M. Harlin 

     

    Name:
      Ray
      M. Harlin

    Authorized
      Officer of above Guarantors

    

    GUARANTOR:

    

    Xpress
      Nebraska, Inc.

    

    By:
      /s/Al
      Hingst     

    

    Name:
      Al
      Hingst, Secretary

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    GUARANTOR:

    

    Xpress
      Holdings, Inc.

    

    By:
      /s/Rebecca Howell     

    

    Name:
      Rebecca Howell, Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]