Document:

kurrant_ex102.htm

Exhibit 10.2

 

CONSULTANT SERVICE AGREEMENT

 

THIS CONSULTANT SERVICE AGREEMENT (the “Agreement”) is deemed made, entered into and effective this 2ndday of June, 2010 (the “Effective Date”).

Between:  KURRANT MOBILE CATERING, INC., Inc., a Colorado Corporation, with its principle business address at 194 Hermosa Circle, Durango, Colorado, 81301;

 

(the “Company").

And:   Michèle Thibault, a Canadian businesswoman having its principal place of business 5310 15e avenue, bureau 303, Montreal, Qc,H1X 3G2

(the "Consultant").

WHEREAS:

	
A. 

	
The Company is a reporting company incorporated under the laws of the State of Colorado, U.S.A., and has its common shares listed for trading on the NASDAQ Over-The-Counter Bulletin Board;

	
B. 

	
The Company is involved in the principal business of editing and book publishing (collectively, the “Business”);

	
C.

	
The Consultant is a professional within the of film and TV script development and desires to provide professional consulting services to the Company;

	
D. 

	
The Company desires to retain the services of the Consultant and the Consultant desires to accept such mandate, in order to provide such related services to the Company (collectively, the “General Services”);

	
E. 

	
It is the intention of the Company and the Consultant (at times referred to herein as “Parties”) hereby to memoralize all such agreements and understandings between them relating to the terms and conditions of the General Services and, correspondingly, it is their further intention that the terms and conditions of this agreement (the “Agreement”) will replace, in their entirety, all such prior discussions, negotiations, understandings and agreements with respect to the General Services;

	
F. 

	
The Parties hereto have agreed to enter into this Agreement which replaces, in its entirety, all such prior discussions, negotiations, understandings and agreements, and, furthermore, which necessarily clarifies their respective duties and obligations with respect to the General Services to be provided hereunder, all in accordance with the terms and conditions of this Agreement;

	
G. 

	
The Parties do not wish this Agreement to be an employment agreement and intend to maintain an independent contractor relationship whereby the Consultant will continue to provide the General Services hereunder.  The Consultant shall allocate, in his discretion, the amount of time appropriate to providing General Services to the Company and the manner of the provision of any part of the General Services.  The Consultant may choose the location from which the Consultant’s General Services are rendered, select the times during which such General Services are rendered, and the optimal form of communication through which to deliver or provide such General Services.  Provided however, all decisions of the Consultant in rendering the General Services must be made in good faith, in the best mutual interests of the Consultant and the Company, and carried out in a manner that is generally consistent with accepted industry standards for the provision of such General Services.

 

  

1

  

	
H. 

	
This Agreement when duly signed and accepted by the Consultant; will define the duties, responsibilities and obligations of the Consultant; set forth and provide the consideration, expense allowances and any other consideration offered or provided to the Consultant hereunder; and as offered by the Company to other independent contractors providing professional services and consulting services to the Company.

NOW THEREFORE, in consideration of the recited ongoing relationship of the Parties and the promises, covenants, assurances, agreements and financial compensation provided by and between the Parties all of which is mutually acknowledged as good and sufficient consideration, by and between the Parties hereto, and the Company and the Consultant hereby promise, covenant and agree as follows:

	
1. 

	
Remuneration

	
1.1

	
The Company shall pay to the Consultant Four million five hundred thousand common shares to be issued in accordance with rule 144 of the Law, such shares being valued at .001 as per the Company’s board resolution attached herewith;.

	
1.2

	
N/A;

 

	
1.3

	
The compensation provided for herein will be inclusive of any remuneration otherwise payable to the Consultant may be for serving the Company or any subsidiary of the Company at the request of the Company during the currency of this Agreement.

	
2. 

	
Expenses

	
2.1

	
The Company shall reimburse the Consultant the full amount for all expenses reasonably incurred by the Consultant in the proper performance of the General Services, where such expenses are pre-approved under this Agreement, pre-approved by the Company’s Board of Directors (the “Board”) or the controller of the Company at any specified rate or amount, or upon the Consultant providing such receipts or other evidence as the Company may reasonably require.

	
3. 

	
Notice of Termination and Termination of the Agreement

	
3.1

	
Any Party can terminate this Agreement upon thirty (30) days written notice (herein called “Notice of Termination”) to the other Parties. If the Company terminates the Agreement prior to the Termination Date for any reason other than the Consultant’s gross negligence, all shares issued.

	
3.2

	
N/A

	
3.3

	
N/A

	
3.4

	
All expenses and other reimbursable cost payable to the Consultant hereunder are payable to the date of effective Notice of Termination as provided hereunder.

	
4. 

	
Term of Agreement

	
4.1

	
Unless otherwise agreed to in writing by the Parties, this Agreement will commence on the Effective Date and continue on for a Three months period at which date it shall terminate (herein called the “Termination Date”).  The Agreement may be renewed thereafter upon the mutual consent of the Parties.

  

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5. 

	
General Services

	
5.1

	
During the continuance of this Agreement the Consultant also agrees to provide the services as more fully described in Schedule A attached herewith and such related services, as the Board may, from time to time, reasonably assign to the Consultant and as may be necessary for the ongoing maintenance and development of the Company’s various Business interests during the continuance of this Agreement (herein collectively described as the “General Services”). Any extraordinary mandate shall be the object of an agreement between the parties for additional compensation.

 

	
5.3

	
N/A;

	
5.4

	
The Consultant will perform the said General Services faithfully, diligently, to the best of the Consultant’s capabilities with the resources at its disposal and in the best interests of the Company.

	
5.5

	
N/A;

	
5.6

	
In any event the Consultant will not engage in any activity which is in a conflict of interests with its engagement under this Agreement or contrary to the best interests of the Company.  In that regard, the Consultant and the Company shall regularly consult and make necessary and appropriate records available to one another to assure them, and each of them, that no potential or actual conflict of interest arises in the performance of the responsibilities hereunder by the Consultant.

	
6. 

	
Confidentiality, Non-Disclosure, Non-Competition and Non-Circumvention

	
6.1

	
Subject to the provisions of Section 5.6 hereof to prevent conflicts of interest, the Consultant hereby covenants, promises and agrees that he will be provided with confidential, proprietary and valuable information by the Company about its clients, properties, prospects and financial circumstances from time to time during the currency of this Agreement, in order to permit the Consultant to properly, effectively and efficiently carry out its tasks, duties and activities hereunder. However, by providing such disclosure of Confidential Information to the Consultant, the Company relies on the Consultant to hold such information as confidential and only disclose the same to those parties, whether directors, officers, employees, agents, representatives or clients and contacts of the Consultant “who need to know”, in order that the Consultant can carry out the objects of this Agreement as provided for herein and as communicated as between the Company and the Consultant during the currency of this Agreement.  Due to the nature of the relationship of the Consultant to the Company no more precise limitations can be placed on the Consultant’s use and disclosure of Confidential Information received from the Company pursuant hereto than as described herein.

	
6.2

	
The general nature of the Agreement between the Parties is that the Consultant (also called the “Independent Contractor”) acting as an independent contractor and consultant to the Company, whereby the Independent Contractor will act on the Company’s behalf in the promotion of the Company’s interests and by way of introductions, consulting to and advising of the Company on matters related to the Business.  The result of these terms and conditions of disclosure of Confidential Information to the Independent Contractor by the Company is that the Independent Contractor will:

	
(a)

	
Only disclose such Confidential Information on a “need to know” basis, but it will be up to the Independent Contractor’s reasonable discretion in acting on behalf of and in the best interests of the Company to determine what group or groups “need to know” about such information pursuant to the nature and scope of this Agreement;

	
(b)

	
The disclosure of Confidential Information from the Company to the Independent Contractor further to the intents and purposes of this Agreement will prohibit the Independent Contractor from directly or indirectly using the Confidential Information in a manner that is in conflict with or contrary to the best interests of the Company, except with the Company’s written consent;

  

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(c)

	
The Independent Contractor will not use Confidential Information in a manner that in the view of the Company would constitute a direct or indirect use for a purpose which is in competition with the best interests of the Company or would be a circumvention of the Company’s right or interest in a particular Business opportunity.

	
(d)

	
The meaning of Confidential Information (herein called “Confidential Information”) will include any information disclosed by the Company that is declared by the Company either verbally or in writing, depending on the means of communication of such Confidential Information by the Company to the Independent Contractor.

	
(e)

	
The restrictions on disclosure of Confidential Material do not apply to any of the following circumstances:

	
  

	
(i)

	
Information forming part of the public domain, which became such through no disclosure or breach of this Agreement on the Independent Contractor’s behalf;

	
  

	
(ii)

	
Information which the Independent Contractor can independently prove was received from a Third Party, which was legally entitled to disclose such information;

	
  

	
(iii)

	
Information which the Independent Contractor is legally obligated to disclose in compliance with any applicable law, statute, regulation, order, ruling or directive of an official, tribunal or agency which is binding on the Consultant, provided that the Independent Contractor must also provide the Company with notice of such disclosure at or before releasing or disclosing the Confidential Information to such official, tribunal or agency so that the Company is afforded an opportunity to file a written objection to such disclosure with such official, tribunal or agency.

	
6.3

	
The Independent Contractor understands, acknowledges and agrees that the covenants to keep the Confidential Information confidential and not disclose it to Third Parties, except in conformity with this Agreement, is necessary to protect the proprietary interests of Company in such Confidential Information and a breach of these covenants would cause significant loss to the Company in regard to its competitive advantage, market opportunities and financial investment associated with protection of its Confidential Information.

	
6.4

	
The Independent Contractor further understands, acknowledges and agrees that a breach of these covenants of confidentiality, non-disclosure, non-competition and non-circumvention under this Section 6 (in combination the “Covenants of Confidentiality, Non-Circumvention and Non Disclosure”), will likely cause such irreparable harm to the Company that damages alone would be an inadequate remedy and the Independent Contractor consent and agree such equitable remedies including injunctive relief against any further breach which are reasonably justified in addition to any claim for damages based on a breach of these Covenants of Confidentiality, Non-Circumvention and Non Disclosure.

	
6.5

	
The Parties mutually acknowledge, confirm and agree that the Covenants of Confidentiality, Non-Circumvention and Non-Disclosure will survive Termination of this Agreement and will continue to bind the Independent Contractor to protect the Company’s interest in such Confidential Information disclosed pursuant hereto.

 

  

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7.

	
Change of Control.

	
7.1

	
N/A;

 

General Clauses

	
8. 

	
Governing Law, Jurisdiction and Currency

	
8.1

	
This Agreement shall be governed by and interpreted in accordance with the laws of the State of Nevada, without giving effect to the principles of conflicts of law thereof.

	
8.2

	
Unless otherwise mutually agreed to in writing by the Parties, any action, proceeding or arbitration in regard to a dispute or direction relating to the subject matter of this Agreement will be solely within the jurisdiction of the appropriate court, tribunal or arbitrator of competent jurisdiction within the State of Nevada.

	
8.3

	
Unless otherwise expressly provided for herein or agreed upon in writing by the Parties, all references to money or money consideration are deemed to be in United States Currency (“US$”)

 

	
9. 

	
Notice

	
9.1

	
All notices to be given with respect to this Agreement, unless otherwise provided for, shall be given to Cleary, the Company and the Consultant at the respective addresses, fax numbers and email addresses shown below or otherwise communicated by the Parties to each other for such notice and service matters during the currency of this Agreement.

  

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9.2

	
All notices, requests, demands or other communications made by a Party will be deemed to have been duly delivered: (i) on the date of personal delivery utilizing a process server, courier or other means of physical delivery to the intended recipient (“Personal Service”); or (ii) on the date of facsimile transmission (the “Fax”) on proof of receipt of the Fax; or (iii) on the date of electronic mail (the “email”) with verifiable proof of receipt of such email; or (iv) on the seventh (7th) day after mailing by registered mail with postage prepaid (“Registered Mail”), to the Party’s address, Fax number, email address set out in this Agreement or such other addresses Fax numbers or email address as the Parties or their Representatives may have from time to time during the currency of this Agreement or thereafter and communicated to the other Parties for the purposes of this Agreement.

To:   Kurrant Mobile Catering, Inc.

194 Hermosa Circle

Durango, Colorado

81301

Or

C/o      Diane D. Dalmy, Attorney At Law

8965 W. Cornell Place

Lakewood, Colorado 80227

Tel: (303) 985-9324

Fax: (303) 988-6954

Emaile:ddalmy@earthlink.net

To: Michèle Thibault

5310, 15e avenue, bureau 303, Montreal, Qc. Canada H1X 3G2

	
10. 

	
Entire Agreement

	
10.1

	
This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof and replaces, restates in full and supersedes all other prior agreements and understandings, both written and oral.

	
10

	
Assignments

	
10.1

	
The Parties agree that neither will assign this Agreement without prior written consent of the other Party.

	
11.

	
Inurement

	
11.1

	
This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and authorized assigns. Any attempt by either party to assign any rights, duties or obligations that may arise under this Agreement without the prior written consent of the other party shall be void.

 

  

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12. 

	
Entire Agreement and Severance

	
12.1

	
This document contains the entire agreement between the Parties with respect to the subject matter hereof, and neither Party is relying on any agreement, representation, warranty, or other understanding not expressly stated herein. In the event that any provision of this Agreement will be held to be invalid, illegal or unenforceable in any circumstances, the remaining provisions will nevertheless remain in full force and effect and will be construed as if the unenforceable portion or portions were deleted.

	
13.

	
Time if of the Essence

	
13.1

	
Time is of the essence in this Contract.  A waiver of the strict performance requirements hereunder in on instance will not constitute a waiver for any other instance where time for performance is specified herein..

	
14 

	
Counterparts and Execution Electronically

	
14.1

	
Where the Parties hereto or their authorized signatories have signed, sealed and duly executed this Agreement effective the date above shown whether as a whole document in original form or in several counterparts; each such counterpart shall be considered as an original and in combination comprises the formal execution hereof.  The Parties acknowledge and consent to the execution of this Agreement and all related documents and notices pursuant hereto by electronically scanned signatures or facsimile transmission, either of which will constitute good and sufficient execution, service and notice for all intents and purposes hereunder and will be deemed to be as effective as if an originally “signed-in-hand” physical document was used instead.

 

THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.

 

  

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IN WITNESS WHEREOF this Agreement is hereby signed, sealed and duly executed by the Parties or their duly authorized signatories on the Effective Date first above written.

 

 

KURRANT MOBILE CATERING INC.                                                            )

)

)                                (C/S)

_______________________________________________________)

 

Authorized Signatory                                                                                         )

 

Lois Arkwright                                                                                                     )

)

)

_______________________________________________________)

 

Signature of Witness                                                                                          )           

)                 ____________________________________

)

 

Address of Witness                                                                                            )

)

_______________________________________________________)

 

Name and Occupation of Witness                                                                    )

 

  

8

  

SCHEDULE A

Analysis of the potential of developing film or television adaptation of the different products.

Research the creative team to assign to each production

 

 

  

9exh10_1.htm

EXHIBIT 10.1

SECOND AMENDMENT TO SECOND AMENDED AND RESTATED

CREDIT AGREEMENT

THIS SECOND AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (herein called this “Amendment”) made as of October 27, 2010 by and among FFE TRANSPORTATION SERVICES, a Delaware corporation (“Borrower”), FROZEN FOOD EXPRESS INDUSTRIES, INC., a Texas corporation (“Parent”), CONWELL CORPORATION, a Delaware corporation, FX HOLDINGS, INC., a Delaware corporation, LISA MOTOR LINES, INC., a Delaware corporation, COMPRESSORS PLUS, INC., a Texas corporation, FFE LOGISTICS, INC., a Delaware corporation, CONWELL LLC, a Delaware limited liability company, and COMERICA BANK, as Administrative Agent, Collateral Agent, Issuing Bank and Bank.

W I T N E S S E T H:

WHEREAS, Borrower, the Companies, Administrative Agent and Banks have entered into that certain Second Amended and Restated Credit Agreement dated as of September 2, 2009 (as amended, supplemented, or restated from time to time prior to the date hereof, the “Original Credit Agreement”), for the purposes and consideration therein expressed, pursuant to which Banks became obligated to make loans to Borrower as therein provided; and

WHEREAS, Borrower, the Companies, Administrative Agent and Banks desire to amend the Original Credit Agreement as provided herein;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein and in the Original Credit Agreement, in consideration of the loans which may hereafter be made by Banks to Borrower, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto do hereby agree as follows:

ARTICLE I.

Definitions and References

 

 

§ 1.1.   Terms Defined in the Original Credit Agreement. Unless the context otherwise requires or unless otherwise expressly defined herein, the terms defined in the Original Credit Agreement shall have the same meanings whenever used in this Amendment.

§ 1.2.   Other Defined Terms. Unless the context otherwise requires, the following terms when used in this Amendment shall have the meanings assigned to them in this § 1.2.

“Amendment” means this Second Amendment to Credit Agreement.

  

  

  

“Amendment Documents” means, collectively, this Amendment, the Renewal Note, the Consent and Agreement by the Companies (other than Borrower) with respect to this Amendment, and any other document required to be delivered by the Companies pursuant to Article III hereof.

“Credit Agreement” means the Original Credit Agreement as amended hereby.

“Original Omnibus Certificate” means the Omnibus Certificate dated September 2, 2009 executed and delivered by officers of Borrower pursuant to the Original Credit Agreement.

“Renewal Note” means a promissory note in the form attached hereto as Exhibit A.

ARTICLE II.

Amendments to Original Credit Agreement

§ 2.1.   Definitions.

(a)           The following new definition is hereby added to Section 1.1 of the Original Credit Agreement in appropriate alphabetical order to read as follows:

 

 

“Second Amendment” means that certain Second Amendment to Second Amended and Restated Credit Agreement dated as of October 27, 2010 among Borrower, Parent, the other Companies, Administrative Agent and the Banks party thereto.

(b)           The definition of Borrowing Base in Section 1.1 of the Original Credit Agreement is hereby amended in its entirety to read as follows:

“Borrowing Base” means an amount equal to (i) eighty-five percent (85%) of the aggregate Eligible Accounts, calculated in accordance with GAAP based upon consolidated financial information of Parent and the Subsidiaries (ii) less a reserve of $5,000,000. The Borrowing Base shall be determined by Administrative Agent from time to time in its good faith judgment.

(c)           The final sentence of the definition of Base Rate Margin in Section 1.1 of the Original Credit Agreement is hereby amended in its entirety to read as follows:

Notwithstanding anything to the contrary contained in this definition, (i) the Tier I Base Rate Margin shall be in effect from the date of the Second Amendment through the first date after December 31, 2010 on which Parent and Borrower delivers a Compliance Certificate evidencing a Fixed Charge Coverage Ratio greater than 1.25 to 1.00 and (ii) the determination of the Applicable Rate for any period shall be subject to the last sentence of Section 5.1(f).

  

  

  

                (d)           The final sentence of the definition of Facility Fee Rate in Section 1.1 of the Original Credit Agreement is hereby amended in its entirety to read as follows:

Notwithstanding anything to the contrary contained in this definition, (i) the Tier I Facility Fee Rate shall be in effect from the date of the Second Amendment through the first date after December 31, 2010 on which Parent and Borrower delivers a Compliance Certificate evidencing a Fixed Charge Coverage Ratio greater than 1.25 to 1.00 and (ii) the determination of the Applicable Rate for any period shall be subject to the last sentence of Section 5.1(f).

§ 2.2.   Affirmative Covenants.

(a)           Subsection (a) of Section 5.1 of the Original Credit Agreement is hereby amended in its entirety to read as follows:

(a)           Compliance Certificate. On or before the thirtieth (30th) day after the end of each calendar month, deliver to each Bank a Compliance Certificate.

(b)           The first sentence of subsection (f) of Section 5.1 of the Original Credit Agreement is hereby amended in its entirety to read as follows:

Maintain during each period set forth below a Fixed Charge Coverage Ratio equal to or greater than the ratio set forth below with respect to such period:

From and including September 30, 2010 until and including March 30, 2011 1.15 to 1.00

 

 

From and including March 31, 2011 and thereafter 1.25 to 1.00

(c)           The first sentence of subsection (k) of Section 5.1 of the Original Credit Agreement is hereby amended in its entirety to read as follows:

Maintain during each period set forth below a Leverage Ratio equal to or less than the ratio setforth below with respect to such period:

From and including September 30, 2010 until and including March 30, 2011 2.75 to 1.00

From and including March 31, 2011 and thereafter 2.50 to 1.00

(d)           A new subsection (u) is hereby added to Section 5.1 of the Original Credit Agreement immediately after the existing subsection (t) to read as follows:

(u)           Engagement of Consultant. No later than December 15, 2010, the Companies will engage a consultant to conduct a comprehensive review of the business and operations of the Companies and will, promptly after receipt thereof, deliver the report of such consultant to the Banks.

  

  

  

§ 2.3.   Negative Covenants. Section (h) of Section 5.2 of the Original Credit Agreement is hereby amended in its entirety to read as follows:

(h)           Capital Expenditures. Permit the aggregate amount of all Capital Expenditures made by the Companies, during the most recently ended twelve (12) month period (net of the proceeds of the sale or exchange of any fixed assets), to exceed $20,000,000.

§ 2.4.   Schedules and Exhibits. Schedule 1.1, Commitments, and Exhibit C, Promissory Note, to this Amendment are hereby substituted for Schedule 1.1 and Exhibit C, respectively, to the Original Credit Agreement.

ARTICLE III.

Conditions of Effectiveness

§ 3.1.   Effective Date. This Amendment shall become effective as of the date first above written when and only when Administrative Agent shall have received, at Administrative Agent’s office,

(a)            a duly executed counterpart of this Amendment,

(b)           the duly executed Renewal Note,

(c)           a duly executed Consent and Agreement from each Company (other than the Borrower) in the form of Annex I hereto,

(d)           a duly executed certificate of the secretary and chief financial officer of Borrower certifying that (i) resolutions of its board of directors attached to the Original Omnibus Certificate authorizing the execution, delivery, and performance of this Amendment and identifying the officers authorized to sign such instrument are in full force and effect, (ii) the specimen signatures of the officers so authorized which were attached to the Original Omnibus Certificate are true and correct, and (iii) the certificate of incorporation and all amendments thereto and the bylaws and all amendments thereto of Borrower attached to the Original Omnibus Certificate are in full force and effect,

(e)           a payment of an amendment fee by Borrower to Comerica in the amount of $50,000, and

(f)           each other document to be executed and delivered by Borrower pursuant hereto or thereto.

  

  

  

ARTICLE IV.

Representations and Warranties

§ 4.1.   Representations and Warranties. In order to induce Administrative Agent and Banks to enter into this Amendment, Borrower and each other Company represents and warrants to Administrative Agent and Banks that:

(a)           The representations and warranties contained in Article IV of the Original Credit Agreement are true and correct at and as of the time of the effectiveness hereof;

(b)           Each Company is duly authorized to execute and deliver the Amendment Documents to which it is a party and is and will continue to be duly authorized to borrow and to perform its obligations under the Credit Agreement and the other Loan Papers. Each Company has duly taken all corporate action necessary to authorize the execution and delivery of the Amendment Documents to which it is a party and to authorize the performance of the obligations of such Company hereunder and thereunder;

(c)           The execution and delivery by each Company of the Amendment Documents to which it is a party, the performance by such Company of its obligations hereunder and thereunder and the consummation of the transactions contemplated hereby do not and will not conflict with any provision of law, statute, rule or regulation or of the certificate of incorporation and bylaws of such Company, or of any material agreement, judgment, license, order or permit applicable to or binding upon such Company, or result in the creation of any lien, charge or encumbrance upon any assets or properties of such Company. Except for those which have been duly obtained, no consent, approval, authorization or order of any court or governmental authority or third party is required in connection with the execution and delivery by any Company of the Amendment Documents to which it is a party or to consummate the transactions contemplated hereby and thereby;

(d)           When duly executed and delivered, each of the Amendment Documents to which it is a party will be a legal and binding instrument and agreement of each Company, enforceable in accordance with its terms, except as limited by bankruptcy, insolvency and similar laws applying to creditors’ rights generally and by principles of equity applying to creditors’ rights generally; and

(e)           The audited annual consolidated financial statements of Parent dated as of December 31, 2009 and the unaudited quarterly consolidated financial statements of Parent dated as of June 30, 2010 fairly present the consolidated financial position at such dates and the consolidated statement of operations and the changes in consolidated financial position for the periods ending on such dates for the Companies. Copies of such financial statements have heretofore been delivered to Banks. Since such dates no material adverse change has occurred in the financial condition or businesses or in the consolidated financial condition or businesses of the Companies.

ARTICLE V.

Miscellaneous

  

  

  

§ 5.1.   Ratification of Agreement. The Original Credit Agreement as hereby amended is hereby ratified and confirmed in all respects. Any reference to the Credit Agreement in any Loan Document shall be deemed to refer to this Amendment also. Any reference to the Note in any other Loan Document shall be deemed to be a reference to the Renewal Note issued and delivered pursuant to this Amendment. The execution, delivery and effectiveness of this Amendment and the other Amendment Documents shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of Administrative Agent or Banks under the Credit Agreement or any other Loan Document nor constitute a waiver of any provision of the Credit Agreement or any other Loan Document.

§ 5.2.   Survival of Agreements. All representations, warranties, covenants and agreements of Borrower herein shall survive the execution and delivery of this Amendment and the performance hereof, and shall further survive until all of the Obligations are paid in full. All statements and agreements contained in any certificate or instrument delivered by any Company hereunder or under the Credit Agreement to Banks shall be deemed to constitute representations and warranties by, or agreements and covenants of, the Companies under this Amendment and under the Credit Agreement.

§ 5.3.   Loan Papers. This Amendment and the other Amendment Documents are each a Loan Paper, and all provisions in the Credit Agreement pertaining to Loan Papers apply hereto and thereto.

§ 5.4.   Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State of Texas and any applicable laws of the United States of America in all respects, including construction, validity and performance.

§ 5.5.   Counterparts; Fax. This Amendment may be separately executed in counterparts and by the different parties hereto in separate counterparts, each of which when so executed shall be deemed to constitute one and the same Amendment. This Amendment may be duly executed by facsimile or other electronic transmission.

THIS AMENDMENT AND THE OTHER LOAN PAPERS REPRESENT 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.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]

  

  

  

IN WITNESS WHEREOF, this Amendment is executed as of the date first above written.

	  	
FFE TRANSPORTATION SERVICES, INC

	  	  
	  	  
	  	
By: /s/ John R. McManama

	  	
John R. McManama

	  	
Senior Vice President, Treasurer and Chief

	  	
Financial Officer

	  	  
	  	  
	  	  
	  	  
	  	
COMERICA BANK

	  	  
	  	  
	  	
By: /s/ David Milton

	  	
Name: David Milton

	  	
Title: Senior Vice President

	  	  
	  	  
	  	  
	  	  

  

  

  

ANNEX I

CONSENT AND AGREEMENT

Each of the undersigned Guarantors hereby (i) consents to the provisions of this Amendment and the transactions contemplated herein, (ii) ratifies and confirms the Second Amended and Restated Guaranty and Second Amended and Restated Security Agreement, each dated as of September 2, 2009, made by it for the benefit of Banks pursuant to the Credit Agreement, (iii) ratifies and confirms all other Loan Papers made by it for the benefit of Banks, (iv) agrees that all of its respective obligations and covenants thereunder shall remain unimpaired by the execution and delivery of this Amendment and the other documents and instruments executed in connection herewith, and (v) agrees that such Guaranty, such Security Agreement and such other Loan Papers shall remain in full force and effect.

	  	
FROZEN FOOD EXPRESS INDUSTRIES, INC.

	  	  
	  	  
	  	
By: /s/ John R. McManama

	  	
John R. McManama

	  	
Senior Vice President, Treasurer and Chief

	  	
Financial Officer

	  	  
	  	  
	  	
CONWELL CORPORATION

	  	  
	  	  
	  	
By: /s/ Leonard W. Bartholomew

	  	
Leonard W. Bartholomew

	  	
Secretary

	  	  
	  	  
	  	
FX HOLDINGS, INC.

	  	  
	  	  
	  	
By: /s/ Leonard W. Bartholomew

	  	
Leonard W. Bartholomew

	  	
Secretary

	  	  
	  	  
	  	  
	  	  
	  	  
	  	  

  

  

  

	  	
LISA MOTOR LINES, INC.

	  	  
	  	  
	  	
By: /s/ Leonard W. Bartholomew

	  	
Leonard W. Bartholomew

	  	
Secretary

	  	  
	  	  
	  	
COMPRESSORS PLUS, INC.

	  	  
	  	  
	  	
By: /s/ Leonard W. Bartholomew

	  	
Leonard W. Bartholomew

	  	
Secretary

	  	  
	  	  
	  	
FFE LOGISTICS, INC.

	  	  
	  	  
	  	
By: /s/ Leonard W. Bartholomew

	  	
Leonard W. Bartholomew

	  	
Secretary

	  	  
	  	  
	  	
CONWELL, LLC

	  	  
	  	  
	  	
By: /s/ Leonard W. Bartholomew

	  	
Leonard W. Bartholomew

	  	
Secretary

	  	  
	  	  
	  	  

  

  

  

SCHEDULE 1.1

TO

CREDIT AGREEMENT

FFE TRANSPORTATION SERVICES, INC.

Commitments

Comerica Bank                                                     $20,000,000

Total                                                   $20,000,000

  

  

  

EXHIBIT A

REVOLVING NOTE

  

  

  

EXHIBIT C

REVOLVING CREDIT NOTE

$20,000,000                                            Dallas, Texas                              October 27, 2010

FOR VALUE RECEIVED, the undersigned, FFE TRANSPORTATION SERVICES, INC. (“Borrower”), a Delaware corporation, hereby unconditionally promises to pay to the order of COMERICA BANK (“Bank”), at the principal offices of Comerica Bank, in Dallas, Texas or at such other address in Dallas County, Texas, as may be designated by Administrative Agent from time to time, the lesser of (i) the principal sum of TWENTY MILLION AND 00/100 Dollars ($20,000,000), or (ii) the aggregate unpaid principal amount of all Loans made by Bank to Borrower pursuant to Article II of the Agreement (as such term is defined below), together with interest on the unpaid principal balance from the date hereof until maturity at such varying rates per annum (but in no event in excess of the Highest Lawful Rate) as determined in accordance with the provisions of Article II of the Agreement. Borrower promises to pay such principal of, and interest on, this Note on the dates and in the manner provided in the Agreement. If not sooner paid, the unpaid principal balance of this Note and all accrued interest hereon shall be due and payable in full on the Termination Date. All such payments of both principal and interest shall be made in lawful money of the United States of America and in immediately available funds.

All Loans made by Bank to Borrower pursuant to the Agreement and all payments of the principal thereof may be noted by Bank on schedules from time to time attached hereto, or on a continuation of such schedules or otherwise recorded in Bank’s records; provided, however, that the failure of Bank to make any such notation shall not limit or otherwise affect the obligations of Borrower hereunder or under the Agreement.

This Note has been executed and delivered pursuant to the terms of that certain Second Amended and Restated Credit Agreement dated as of September 2, 2009, among Comerica Bank, as Administrative Agent and as Collateral Agent, Borrower, Frozen Food Express Industries, Inc., Conwell Corporation, FX Holdings, Inc., Lisa Motor Lines, Inc., Compressors Plus, Inc., FFE Logistics, Inc., and Conwell LLC (as the same may be renewed, extended, amended, modified and/or restated from time to time, the “Agreement”), and is one of the “Revolving Credit Notes” referred to therein. The holder of this Note is entitled to the benefits of the Agreement and may enforce the agreements contained therein and exercise the remedies provided for thereby, and reference is hereby made to the Agreement for a statement of the payment and prepayment rights and obligations of Borrower and for a statement of the events upon which and the terms and conditions under which the maturity of this Note may be accelerated.

All defined terms used herein shall have the meanings respectively assigned to them in the Agreement.

  

  

  

If this Note is placed in the hands of an attorney for collection, or if it is collected through any legal proceedings, at law or in equity, or in bankruptcy, receivership or other court proceedings, Borrower agrees to pay all costs of collection, including, but not limited to, court costs and reasonable attorneys’ fees.

Borrower and each surety, endorser, guarantor and other party ever liable for payment of any sums of money payable on this Note, jointly and severally waive presentment and demand for payment, protest, notice of protest, intention to accelerate, acceleration and nonpayment, or other notice of default, and all other notices other than as expressly provided in the Agreement, and agree that their liability under this Note shall not be affected by any renewal or extension in the time of payment hereof, or by any indulgences, or by any release or change in any security for the payment of this Note, and each such Borrower, surety, endorser, guarantor and other party hereby consents to any and all renewals, extensions, indulgences, releases or changes directly affecting any such party other than itself, regardless of the number of such renewals, extensions, indulgences, releases or changes.

THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE

WITH APPLICABLE FEDERAL LAW AND THE LAWS OF THE STATE OF TEXAS.

It is the intention of the parties hereto to conform strictly to usury laws applicable to Bank. Accordingly, if the transactions contemplated hereby would be usurious under applicable law (including the laws of the United States of America and the State of Texas or any other jurisdiction whose laws may be mandatorily applicable notwithstanding the provisions of the Agreement), then in the event, notwithstanding anything to the contrary in this Note, the Agreement or in any agreement entered into in connection with or as security for this Note, it is agreed as follows: (i) the aggregate of all consideration which constitutes interest under law applicable to Bank that is contracted for, taken, reserved, charged or received under this Note, the Agreement or under any of the other aforesaid agreements or otherwise in connection with this Note shall under no circumstances exceed the maximum amount allowed by such applicable law, and any excess shall be credited by Bank on the principal amount of the Obligations (or, if the principal amount of the Obligations shall have been paid in full, refunded to Borrower); and (ii) in the event that the maturity of this Note is accelerated by reason of an election of Administrative Agent or any Bank resulting from any Default under the Agreement or otherwise, or in the event of any required or permitted prepayment, then such consideration that constitutes interest under law applicable to Bank may never include more than the maximum amount allowed by such applicable law, and excess interest, if any, provided for in this Note, the Agreement or otherwise shall be canceled automatically as of the date of such acceleration or prepayment and, if theretofore paid, shall be credited by Bank on the principal amount of the Obligations (or, if the principal amount of the obligations shall have been paid in full, refunded by Bank to Borrower).

  

  

  

The indebtedness evidenced by this Note is in renewal and modification, but not in extinguishment or novation, of the principal indebtedness evidenced by that certain promissory note dated November 4, 2009, in the original principal amount of $25,000,000 executed by the undersigned payable to the order of the Bank.

	  	
FFE TRANSPORTATION SERVICES, INC.

	  	  
	  	  
	  	
By: /s/ John R. McManama

	  	
John R. McManama

	  	
Senior Vice President, Treasurer and Chief

	  	
Financial Officer

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