Document:

ex10_4.htm

EXHIBIT 10.4

EMPLOYMENT AGREEMENT - AMENDED

THIS AGREEMENT is made this the 11th day of August, 2009, by and between Breda Telephone Corp., d/b/a Western Iowa Networks, an Iowa Corporation, hereinafter referred to as “Breda,” and Kevin D. Batcher, the Chief Operations Officer, hereinafter referred to as “Kevin.”

WHEREAS, the parties hereto desire to enter into a mutual agreement wherein Breda shall employ Kevin as its Chief Operations Officer.

WHEREAS, the parties hereto desire to amend the original Employment Agreement entered into between the parties dated June 9, 2009, to be in a more standardized format consistent with employment agreements of other managers of Breda.

WHEREAS, the parties hereto desire to enter into an agreement based upon terms and conditions set forth below.

NOW, therefore in consideration of the mutual covenants and obligations hereinafter set forth, the parties agree as follows:

1.           Employment and Duties.  Breda employs Kevin in the capacity of Chief Operations Officer.  Kevin shall perform such duties and such additional duties as may be assigned to him by the Chief Executive Officer, or from time to time by the Board of Directors.

2.           Term.  The term of this Agreement shall begin on July 1, 2009, and shall terminate on June 30, 2012.

3.           Compensation.  During the term of this agreement, Breda shall pay Kevin a salary and bonus as follows:

	
  

	
a.

	
Salary.  Kevin's yearly salary for the year beginning July 1, 2009, to June 30, 2010, shall be $101,660.00.  Kevin's yearly salary for the years beginning July 1, 2010, and July 1, 2011, shall be set by the Board of Directors after receiving recommendations from the Chief Executive Officer.  Kevin's yearly salary for those years will not be less than $101,660.00.  Kevin's yearly salary will be payable in accordance with Breda's regular payroll procedures.

	
  

	
b.

	
Bonus.  If Kevin is employed on  June 30th of the  fiscal years of  2011 and  2012, he shall be entitled to a bonus for each of those years.  The Board of Directors and the Chief Executive Officer shall set up a procedure for the determination of this bonus.  The final determination as to the amount of the bonus rests solely with the Board of Directors.

  

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4.           Duties.  Kevin shall devote his entire attention and energy to the business and affairs of Breda and shall not be engaged in any other business activity, whether or not such business activity is for the pursuit of gain, profit or other pecuniary advantages, unless Breda consents to Kevin's involvement in such business activities.  In this capacity, Kevin shall be responsible for all the affairs and operations of the company.  Breda may, from time to time, extend or curtail Kevin's precise services.

5.           Employee Benefits.  Kevin shall be entitled to any retirement benefits as offered by Breda to its other full time employees.  Kevin will receive health insurance for both he and his wife, and all other employee benefits, a list of said benefits is attached hereto and made a part hereof.

6.           Vacation.  Kevin shall be entitled to four (4) weeks paid vacation each year of this Agreement.

7.           Expenses.  Kevin may incur reasonable expenses for promoting Breda's business, including expenses for entertainment, travel and similar items.  Breda will reimburse Kevin for all such expenses upon Kevin's periodic presentation of the itemized account of such expenditures.

8.           Termination Without Cause.  Breda may terminate this agreement at any time, without cause, by giving thirty (30) days written notice to Kevin.  In that event, if requested by Breda, Kevin shall continue to render his services and shall be paid his regular compensation up to the date of termination.  If Kevin is terminated without cause, Kevin shall be paid on the date of termination a severance equal to one year pay, or an amount equal to the amount remaining to be paid under this contract, whichever is less.

Kevin may terminate this agreement, at any time, by giving sixty (60) days notice to Breda.  In that event, Breda shall pay Kevin his compensation up to the date of termination.  Kevin shall not be entitled to any severance payment and will not be considered for any performance bonus upon his voluntary termination.

9.           Termination for Cause.  Breda may terminate this agreement for cause upon five (5) days written notice to Kevin stating the reason for said termination.  If Kevin is terminated for cause, he will not be entitled to any severance payment.  Matters that would be considered terminable for cause would include, but not be limited to:

	
  

	
a.

	
Fraud or theft;

	
  

	
b.

	
Falsifying records;

	
  

	
c.

	
Refusal to carry out a specific order of the Board of Directors;

	
  

	
d.

	
Abuse, discrimination, or harassment of other employees;

	
  

	
e.

	
Unauthorized dissemination of records or information;

  

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f.

	
Possession of illegal drugs or weapons while on Breda property;

	
  

	
g.

	
Conviction of a crime, the nature of which would be calculated to render an employee undesirable as Chief Operations Officer and detrimental to the best interest of the company; and

	
  

	
h.

	
Using or possessing intoxicants or narcotics of any kind while on company premises or being at work under the influence of such substances.

10.         Illness or Disability.   If Kevin is absent from his employment by reason of illness or other incapacity for more than twenty (20) consecutive weeks, Breda may, after such twenty (20) consecutive weeks, terminate Kevin's employment by furnishing him notice of termination.  Breda shall pay Kevin compensation during any period of illness or incapacity in accordance with Breda's sick pay policy then in effect.  If Kevin is terminated for illness or disability, he will not be entitled to severance pay.

11.         Death.  If Kevin's employment terminates by reason of his death, Breda shall only be obligated to make the payments required under its pension plan.

12.         Restrictive Covenants. During the term of this agreement, and for a period of one (1) year hereafter, Kevin shall not, either as an individual or on his own account, or as a partner, joint venture, employee, agent, officer, director or shareholder, directly or indirectly (a) enter into or engage in any business competitive with that of Breda within a fifty (50) mile area in which Breda is then doing business; and (b) solicit or attempt to solicit any of Breda's customers with the intent or purpose to perform services for such customers which are the same or similar to those provided to the customers by Breda, or to sell to such customers goods which are the same or similar to those provided to customers by Breda.

13.         Confidential Information.  Kevin acknowledges and agrees that all information of a technical or business nature, such as know how, trade secrets, business plans, data, processes, techniques, customer information, inventions, discoveries and devices, acquired by Kevin in the course of his employment under this agreement, is valuable, proprietary information of Breda.  Kevin agrees that such confidential information whether in written, verbal or model form shall not be disclosed to anyone outside of the employment of Breda, without Breda's written consent.

14.         Return of Documents.  Upon the termination of Kevin's employment with or without cause, Kevin shall immediately return and deliver to Breda and shall not retain any originals or copies of any books, papers, price lists, customer contacts, bids, customer lists, files, notebooks or any other documents containing any of the confidential information or otherwise relating to Kevin's performance of duties under this agreement.  Kevin further acknowledges and agrees that all such documents are Breda's sole and exclusive property.

  

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15.           Construction of Agreement. This agreement shall be interpreted, constructed and governed by and under the laws of the State of Iowa.  If any provision or clause of this agreement or the application thereof to either party is held to be invalid by a court of competent jurisdiction, then such provision shall be severed therefrom and such invalidity shall not effect any other provision of this agreement.

	
  

	
a.

	
In the event that the provisions of paragraph 13 shall ever be deemed to exceed the time or geographical limits permitted by applicable law, then such provision shall be reformed to the maximum time and geographical limits permitted by applicable law.

	
  

	
b.

	
The representations, warranties, covenants and agreements of the parties shall be revived continuously during the Term, or in consideration of the compensation paid to Kevin and shall survive the termination of this agreement.

	
  

	
c.

	
This agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof, and there are no understandings, representations or warranties of any kind between the parties except as expressly set forth herein.

	
  

	
d.

	
Neither this agreement nor any right or obligation of Kevin hereunder may be assigned by Kevin without the prior written consent of Breda.

	
  

	
e.

	
Subject thereto, this agreement and the covenants and conditions herein contained shall enure to the benefit of and shall be binding upon the parties hereto and their respective successors and permitted assigns.

	  	  	
BREDA TELEPHONE CORP.

	  	  	  	  
	  	  	  	  
	
August 11, 2009

	  	
By:

	
/s/ Charles Thatcher

	
Date

	  	  	
Charles Thatcher, President

	  	  	  	  
	  	  	  	  
	
August 11, 2009

	  	
/s/ Kevin D. Batcher

	
Date

	  	
Kevin D. Batcher

 

 E-12ex10v.htm

EXHIBIT 10V

 

FIRST AMENDMENT TO

LOAN AND SECURITY AGREEMENT

THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of March 24, 2010 (the “Amendment Date”), is made by and between AUTOINFO, INC., a Delaware corporation (“Parent Company”) and its direct and indirect Subsidiaries, namely, SUNTECK TRANSPORT CO., INC. (“Sunteck”), ELEETS LOGISTICS, INC. (“ELEETS”), SUNTECK TRANSPORT CARRIERS, INC. (“STC”), SUNTECK GOVERNMENT LOGISTICS, INC. (“SGL”), SUNTECK TRANSPORT GROUP, INC., a Florida corporation (“STG”), RAILPORT SERVICES, INC., a Florida corporation (“RSI”) and AMERICAN SHIPPERS DISPATCH, INC. (“ASD”), all of which are Florida corporations (Parent Company, together with Sunteck, ELEETS, STC, SGL, RSI and ASD, herein called, collectively, the “Borrowers” and, individually, a “Borrower”), and REGIONS BANK (“Lender”), for the purpose of amending that certain Loan and Security Agreement, dated as of February 17, 2009, made between Borrowers and Lender (as amended hereby, the “Loan Agreement”), as an accommodation to Borrowers made at their request in reliance by Lender on the terms and conditions herein contained.

1.            Definitions, Etc.  Capitalized terms used in this Amendment, but not expressly defined herein, shall have the same meanings as given to such terms in the Loan Agreement.  Section references used in this Amendment shall mean Sections references in the Loan Agreement.

2.            Statement of Facts.  As of the Amendment Date, a certain Event of Default is known to have occurred and be continuing, namely, in respect of Section 8.2(b) (Funded Debt to EBITDA Ratio) of the Loan Agreement as the Fiscal Month ended December 31, 2009 (the foregoing herein called the “Known Default”).  Borrowers have requested that Lender waive the Known Default and make certain other accommodations to Borrowers, which Lender has agreed to do subject to the terms and conditions set forth herein below.

3.            Waivers and Suspension.  Lender hereby waives the Known Default but solely in regard to the specific time and matter described above and with the understanding that the foregoing is not intended, and shall not be construed, to imply that any waiver has been, or will be, granted as to any other Event of Default, whether present or future, and whether in regard to said Section 8.2(b)of the Loan Agreement or otherwise, except solely as expressly set forth hereinabove.

4.            Amendments.  The Loan Agreement shall be amended as follows:

4.1           Applicable Margin.  The definition of “Applicable Margin,” appearing in Section 1.2 of the Loan Agreement, shall be amended and restated to read in its entirety as follows:

“Applicable Margin” means (i) as to any Revolving Loan made as a LIR Loan, one and 50/100ths of one percent (1.50%) per annum and (ii) as to any Revolving Loan made as a Base Rate Loan, one and 50/100ths of one percent (1.50%) per annum; provided, however, that, notwithstanding the foregoing, effective beginning on March 1, 2010 the “Applicable Margin” shall be determined from time to time on each Determination Date (as defined below), by reference to the following pricing table:

  

 

  

	  	
Funded Debt to EBITDA Ratio

	
Applicable Margin LIR Loans

	
Base Rate Loan

	
Level I

	
Greater than 6.00 to 1.00

	
2.00%

	
1.00%

	
Level  II

	
Less than or equal to 6.00 to 1.00, but greater than 5.00 to 1.00

	
1.75%

	
.75%

	
Level  III

	
Less than or equal to 5.00 to 1.00

	
1.50%

	
.50%

 

The Applicable Margin shall be subject to reduction or increase, as applicable and as set forth in the table above, on a monthly basis as of each Determination Date (as defined below), according to the performance of the Borrowers as measured by the Funded Debt to EBITDA Ratio as determined in the manner provided in Section 8.2(b) and reported in accordance with Section 6.6(d).  Except as otherwise provided in this paragraph, any increase or reduction in the Applicable Margin provided for herein shall be effective on each Determination Date.  Without limiting Lender’s rights to invoke the Default Rate, if (i) the financial statements and the compliance certificate of the Borrowers setting forth the Funded Debt to EBITDA Ratio are not received by Lender by the date required pursuant to Section 6.6(d) or (ii) an Event of Default occurs and Lender so elects, then, in each case, the Applicable Margin shall be at Level I until such time as such financial statements and compliance certificate are received and any Event of Default (whether resulting from a failure to timely deliver such financial statements or compliance certificate or otherwise) is waived in writing by Lender.  As used herein, “Determination Date” means the first day of the first calendar month after the date on which Borrower provides the monthly compliance certificate and financial statements under Section 6.6(d), for the Fiscal Month in question, beginning with the Fiscal Month ending January 31, 2010.  For avoidance of doubt, the Applicable margin as of March 1, 2010 is at Level I above.

In the event that any financial statement or certificate required by Section 6.6(c) is shown to be inaccurate (regardless of whether this Agreement or the Commitment is in effect when such inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of a higher Applicable Margin for any period (an “Applicable Period”) than the Applicable Margin applied for such Applicable Period, then (i) Borrowers shall immediately deliver to Lender a correct certificate for such Applicable Period, (ii) the Applicable Margin for such Applicable Period shall be determined by reference to such certificate, and (iii) Borrower shall promptly pay Lender, on demand, the accrued additional interest owing as a result of such increased Applicable Margin for such Applicable Period, which payment shall be promptly applied by Lender in accordance with the terms hereof.

  

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4.2           The definition of “Flat Rate” appearing in Section 1.2 of the Loan Agreement shall be amended and restated, in its entirety, to read as follows:

“Flat Rate” shall mean a simpler interest rate equal to three percent (3.0%) per annum; provided, however, that, effective on March 1, 2010, and continuing at all times thereafter, the Flat Rate shall be determined by Lender instead based upon the Funded Debt to EBITDA Ratio; that is, if the Funded Debt to EBITDA Ratio for the Fiscal Month then most recently ended as determined by Lender is greater than 6.00 to 1.00, then, the Flat Rate shall be three and 50/100ths of one percent (3.50%) per annum; if the Funded Debt to EBITDA Ratio for such Fiscal Month is less than or equal to 6.00 to 1.00 but greater than 5.00 to 1.00, then, the Flat Rate shall be three and 25/100ths of one percent (3.25%) per annum and if the Funded Bet to EBITDA Ratio is less than or equal to 3.00 to 1.00, then, the Flat Rate shall be three percent (3.0%) per annum.  For avoidance of doubt, the Flat Rate as of March 1, 2010, is three and 50/100ths of one percent (3.50%) per annum. The Flat Rate shall also be subject to review and adjustment by Lender from time to time in the same manner and to the same extent as provided in the definition of “Applicable Margin” for the periodic determination thereof.

4.3           Funded Debt to EBITDA Ratio.  Section 8.2(b) of the Loan Agreement shall be amended and restated in its entirety, to read as follows:

(b) Funded Debt to EBITDA Ratio.  The Funded Debt to EBITDA Ratio for each Fiscal Month, beginning with the Fiscal Month ending January 31, 2009 shall be not more than 5.00 to1; provided, however, that, notwithstanding the forgoing,  beginning with the Fiscal Month ending January 31, 2010, and continuing through the Fiscal Month ending December 31, 2010, the Funded Debt to EBITDA ratio for each Fiscal Month shall be not more than 7.50 to 1, and beginning with the Fiscal Month ending January 31, 2011 and continuing thereafter, the Funded Debt to EBITDA Ratio shall be not more than 6.00 to 1.

5.            Conditions Precedent.  Completion of the following to Lender’s satisfaction shall constitute express conditions precedent to the effectiveness of the amendments set forth in Section 4 above:  (i) Lender and Borrowers shall have executed and delivered this Amendment.

6.            Representations and Warranties.  In order to induce Lender to enter into this Amendment, Borrowers hereby represent and warrant to Lender as follows:

6.1           Legal Right.  Each Borrower has the full power, right and legal authority to execute, deliver and perform its obligations under this Amendment;

6.2           Authorization.  Each Borrower has taken all necessary corporate action necessary to authorize the execution and delivery of, and the performance of its obligations under, this Amendment;

6.3           Enforceability.  This Amendment constitutes a legal, valid and binding obligations of each Borrower, enforceable against each Borrower in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization or moratorium or similar laws affecting the rights of creditors generally;

  

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6.4           No Default.  Except for the Known Defaults, no Default or Event of Default has occurred and is continuing or would result from the execution, delivery and performance by each Borrower of this Amendment;

6.5           No Offset.  No right of offset, no defense and no counterclaim exists in favor of either Borrower in regard to the payment and performance of the Obligations;

6.6           Representations.  The representations and warranties contained in the Loan Agreement and in each of the other Loan Documents to which each Borrower is a party remain true and complete on and as of the date hereof as though made on and as of the date hereof except for (i) changes which have occurred and which were not prohibited by the terms of the Loan Agreement or such other Loan Documents, (ii) to the extent that any such representation or warranty related to an earlier date, and (iii) as are affected by transactions specifically and expressly contemplated by the Loan Agreement.

7.             Reference to and Effect on the Documents.

7.1           Each reference in the Loan Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import, and each reference to the Loan Agreement in the other Loan Documents other than the Loan Agreement, shall mean and be a reference to the Loan Agreement as amended hereby.

7.2           Except as specifically amended hereby, the Loan Agreement and all other Loan Documents, and all other documents, agreements, instruments or writings entered into in connection therewith, shall remain in full force and effect, and are hereby ratified, confirmed and acknowledged by Borrowers.  The amendments set forth herein are limited precisely as written and shall not be deemed to (i) be a consent to any waiver or modification of any other term or conditions of the Loan Agreement, any other Loan Document, or any document delivered pursuant thereto, or (ii) prejudice any right or rights which Lender may now or in the future have in connection with the Loan Agreement or any other Loan Document, or (iii) constitute a novation of the Loan Agreement or any other Loan Document.

8.             Governing Law.  This Amendment and the rights and obligations of the parties hereunder shall be governed by, and construed and interpreted in accordance with the substantive laws of the State of Georgia, without regard for its conflict of laws principles.

9.             Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

10.           Successors.  This Amendment shall be binding upon the permitted successors and assigns of the parties hereto.

11.           Counterparts.  This Amendment may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any party hereto may execute this Amendment by signing any such counterpart.

  

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12.           Loan Document.  This Amendment constitutes a Loan Document under the Loan Agreement.

  

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WITNESS the hands of Borrowers and Lender, as of the date first above written.

	 	“BORROWERS”	 
	 	 	 	 
	 	 	 	 
	  	
AUTOINFO, INC.

	
[SEAL]

	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/William I. Wunderlich

	  	  	  	  
	  	
Name:

	
William I. Wunderlich

	  	  	  	  
	  	
Title:

	
Chief Financial Officer

	  	  	  	  
	  	  	  	  
	  	
SUNTECK TRANSPORT CO., INC.

	[SEAL]
	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/William I. Wunderlich

	  	  	  	  
	  	
Name:

	
William I. Wunderlich

	  	  	  	  
	  	
Title:

	
Chief Financial Officer

	  	  	  
	  	
ELEETS LOGISTICS, INC.

	
[SEAL]

	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/William I. Wunderlich

	  	  	  	  
	  	
Name:

	
William I. Wunderlich

	  	  	  	  
	  	
Title:

	
Chief Financial Officer

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	
SUNTECK TRANSPORT CARRIERS, INC.

	

[SEAL]

	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/William I. Wunderlich

	  	  	  	  
	  	
Name:

	
William I. Wunderlich

	  	  	  	  
	  	
Title:

	
Chief Financial Officer

	  	  	  	  
	  	  	  	  
	  	  	  	  

 

  

6

  

 

	  	
SUNTECK GOVERMENT LOGISTICS, INC.

	
[SEAL]

	  	 	  
	  	  	  	  
	  	
By:

	
/s/William I. Wunderlich

	  	  	  	  
	  	
Name:

	
William I. Wunderlich

	  	  	  	  
	  	
Title:

	
Chief Financial Officer

	  	  	  	  
	  	  	  	  
	  	
SUNTECK TRANSPORT GROUP, INC.

	
[SEAL]

	  	 	  
	  	  	  	  
	  	
By:

	
/s/William I. Wunderlich

	  	  	  	  
	  	
Name:

	
William I. Wunderlich

	  	  	  	  
	  	
Title:

	
Chief Financial Officer

	  	  	  	  
	  	  	  	  
	  	
RAILPORT SERVICES, INC.

	
[SEAL]

	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/William I. Wunderlich

	  	  	  	  
	  	
Name:

	
William I. Wunderlich

	  	  	  	  
	  	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	  	
AMERICAN SHIPPERS DISPATCH, INC.

	

[SEAL]

	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/William I. Wunderlich

	  	  	  	  
	  	
Name:

	
William I. Wunderlich

	  	  	  	  
	  	
Title:

	
Chief Financial Officer

	  	  	  	  

 

  

7

  

 

	  	
Accepted in Atlanta, Georgia

	  
	  	  	  	  
	  	  	  	  
	  	
“LENDER”

	  
	  	  	  	  
	  	
REGIONS BANK

	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	
By:

	
/s/David L. Coody

	  	  	  	  
	  	
Name:

	
David L. Coody

	  	  	  	  
	  	
Title:

	
Senior Vice President

 

 

8

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