Document:

exhibit101.htm

 

 

Exhibit 10.1

 

SECOND AMENDMENT TO

CREDIT AGREEMENT

THIS SECOND AMENDMENT TO CREDIT AGREEMENT ("Second Amendment") is made as of the 31st day of March, 2012, among CELADON GROUP, INC. ("Borrower"), the lenders parties hereto (the "Lenders") and BANK OF AMERICA, N.A., as Administrative Agent, Swing Line Lender and L/C Issuer.

WITNESSETH:

WHEREAS, as of December 7, 2010, the parties hereto entered into a certain Credit Agreement, as amended (as amended, the "Agreement"); and

WHEREAS, the parties desire to further amend the Agreement, all as herein provided;

NOW, THEREFORE, in consideration of the premises, and the mutual promises herein contained, the parties agree that the Agreement shall be, and it hereby is, amended as provided herein and the parties further agree as follows:

PART I.  AMENDATORY PROVISIONS

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

1.01.            Defined Terms.

Section 1.01 of the Agreement is hereby amended by substituting the following new definition in lieu of the existing like definition:

"Material Adverse Effect" means (a) a material adverse change in, or a material adverse effect upon, the operations, business, properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of Borrower or Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of any Loan Party to perform its obligations under any Loan Document to which it is a party; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document to which it is a party; provided, that for purposes of item (a) above, "material" means any basis for liability or loss which would subject Borrower or a Subsidiary to liability or loss in excess of $10,000,000 in the aggregate (to the extent not covered by independent third-party insurance as to which the insurer does not ultimately dispute coverage).

 

  

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ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

2.05    Prepayments. Section 2.05 of the Agreement is hereby amended by adding the following new paragraph (d) thereto:

(d)            Borrower shall make a mandatory prepayment of the Committed Loans in a minimum amount of $250,000 or a higher integral multiple of $10,000 upon a Loan Party's receipt of any proceeds from the sale or disposition of any trucks, truck-tractors, trailers or semi­trailers, net of commissions and net of other reasonable and customary transaction costs, fees and expenses attributable to such sale or disposition.  Any prepayment of a Eurodollar Rate Loan on a day other than the last day of an Interest Period therefor shall include interest on the principal amount being prepaid, together with any additional amounts required pursuant to Section 3.05. Each such prepayment shall be applied to the Committed Loans of Lenders in accordance with their respective Applicable Percentages.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

8.01            Events of Default.  Section 8.01 of the Agreement is hereby amended by deleting Section 8.01(I) (Material Adverse Effect) as an Event of Default.

PART II.  CONTINUING EFFECT

Except as expressly modified herein:

(a)          All terms, conditions, representations, warranties and covenants contained in the Agreement shall remain the same and shall continue in full force and effect, interpreted, wherever possible, in a manner consistent with this Second Amendment; provided, however, in the event of any irreconcilable inconsistency, this Second Amendment shall control:

(b)          The representations and warranties contained in the Agreement shall survive this Second Amendment in their original form as continuing representations and warranties of Borrower; and

(c)           Capitalized terms used in this Second Amendment, and not specifically herein defined, shall have the meanings ascribed to them in the Agreement.

In consideration hereof, Borrower represents, warrants, covenants and agrees that:

(aa)         Each representation and warranty set forth in the Agreement, as hereby amended, remains true and correct as of the date hereof in all material respects, except to the extent that

 

  

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such representation and warranty is expressly intended to apply solely to an earlier date and except changes reflecting transactions permitted by the Agreement;

(bb)           There currently exist no offsets, counterclaims or defenses to the performance of the Obligations (such offsets, counterclaims or defenses, if any, being hereby expressly waived);

(cc)            Except as expressly waived in this Second Amendment, there does not exist any Event of Default or Default; and

(dd)           After giving effect to this Second Amendment and any transactions contemplated hereby, no Event of Default or Default is or will be occasioned hereby or thereby.

PART III. CONDITIONS PRECEDENT

Notwithstanding anything contained in this Second Amendment to the contrary, the Lenders shall have no obligation under this Second Amendment until each of the following conditions precedent have been fulfilled to the satisfaction of the Lenders:

(a)           Each of the conditions set forth in Section 4.02 of the Agreement shall have been satisfied;

(b)           The Agent shall have received this Second Amendment, duly executed by Borrower, the Agent and the Lenders in the form approved by the Agent;

(c)           All legal matters incident to this Second Amendment shall be reasonably satisfactory to the Lenders and their counsel.

PART IV. INDEPENDENT CREDIT DECISION

Each Lender acknowledges that it has, independently and without reliance upon the Agent or any other Lender, based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Second Amendment.

PART V. EXPENSES

Borrower agrees to pay or reimburse the Agent for all reasonable expenses of the Agent (including, without limitation, reasonable attorneys' fees) incurred in connection with this Second Amendment.

PART VI. COUNTERPARTS

This Second Amendment may be executed in counterparts, each of which when so executed shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument.

 

  

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

	  	
"BORROWER"

	  	  
	  	
CELADON GROUP, INC.

	  	  
	  	  
	  	  
	  	
By: /s/ Paul Will                                                              

	  	
Title: COO                                                                

 

  

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BANK OF AMERICA, N.A., as Administrative Agent

	  	  
	  	  
	  	  
	  	
By: /s/ Matthew Doye                         

	  	
Title: Vice President 

	  	
BANK OF AMERICA, N.A., as Swing Line Lender, as L/C Issuer and as a Lender

	  	  
	  	  
	  	  
	  	

By: /s/ Matthew Doye                         

	  	
Title: Vice President 

 

  

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WELLS FARGO BANK, N.A., a Lender

	  	  
	  	  
	  	  
	  	
By: /s/ Kyle Lacey                                                              

	  	
Title: Relationship Manager 

 

 

 

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Back to Form 8-Kcphi8kex101043012.htm

 

AMENDMENT AGREEMENT TO

NON-QUALIFIED STOCK OPTION AGREEMENTS

OF

CHINA PHARMA HOLDINGS, INC

THIS AMENDMENT AGREEMENT (this “Agreement”), dated as of April 28, 2012, is entered into by and between China Pharma Holdings, Inc., a Delaware corporation (the “Company”) and Frank Waung (the “Optionee”).

WHEREAS, the Employment Agreement by and between the Company and the Optionee will cease its effect as of April 28, 2012;

WHEREAS, as of the date of this Agreement, the Optionee has the vested option (the “Subject Option”) to purchase an aggregate of  185,000 shares (such number excludes 50,000 shares expires on April 28, 2012, see the notation under the table under Section 1 hereunder) of the Company’s common stock, par value $0.001 per share (the “Common Stock”) all of which were granted during his employment period since April 28, 2009 pursuant to the Company’s 2009 Stock Option Plan (the “2009 Plan”) or 2010 Long Term Incentive Plan (the “2010 Plan”), as the case may be;

WHEREAS, under 2009 Shares Option Agreement dated October 13, 2009 (the “2009 Shares Option Agreement”),  2010 Shares Option Agreement dated as of April 28, 2010 (the “2010 Shares Option Agreement”) and Non-qualified Stock Option Agreement dated May 25, 2011 (the “2011 Award Agreement”), by and between the Company and the Optionee (collectively, the “Previous Award Agreements”), the Subject Option shall terminate ninety (90) days after termination of the Optionee’s employment by the Company, if not sooner expires pursuant to the original terms of the Subject Options;

WHEREAS, the Nominating and Compensation Committee believes it is for the best interest of the Company to terminate the Subject Options on April 28, 2012 and the Optionee agreed to.

NOW, THEREFORE, in consideration of the mutual covenants and premises hereinafter set forth and for other good and valuable consideration, the parties hereto hereby mutually covenant and agree as follows:

	
1.  

	
Termination of the Vested and Non-expired Options.  The following options, as granted and vested pursuant to the 2009 Plan or the 2010 Plan, as the case may be, are terminated as of April 28, 2012, except for the option to purchase 50,000 shares (as set forth in the first row of the table below) of Common Stock vested on April 28, 2010 expires on April 28, 2012:

 

  

  

  

 

 

	
Number of Shares to Purchase

	
Grant Date

	
Vest Date

	
Expiration Date

	
Termination Date under this Agreement

	50,000   *	 	
10/13/2009

	
4/28/2010

	
4/28/2012

	
N/A*

	
50,000 **

(40,000)     

	 	
10/13/2009

	
9/30/2009

	
9/30/2012

	
4/28/2012

	
150,000      

	 	
4/28/2010

	
4/28/2011

	
4/28/2013

	
4/28/2012

	
25,000      

	 	
5/25/2011

	
4/28/2012

	
4/24/2014

	
4/28/2012

	185,000   *	 	  	  	  	  

*The option to purchase 50,000 shares of Common Stock expires itself and therefore it is not applicable to this Agreement.  The table includes this part merely for the sake of completeness.  So the total to be terminated immediately on April 28, 2012 excludes the 50,000 shares expires on the same date.

** Represented the number of shares that were exercised.

	
2.  

	
Amendment to the Previous Award Agreements.

 

Section 3(a) of the 2009 Shares Option Agreement and 2010 Shares Option Agreement are hereby amended to read in its entirety as following:

6.3           If the Optionee ceases to be the Chief Financial Officer of the Company for any reason other than disability within the meaning of subsections (c) or death within the meaning of subsection (b) during the Option Period, the Option Period shall terminate immediately on the date when Optionee ceases to be the Chief Financial Officer, and thereafter such Option shall be forfeited and cancelled by the Company.

Section 6.3 of the 2011 Award Agreement is amended and read in its entirety as following:

6.3           If the Optionee’s employment with the Company and/or its Subsidiaries terminates for any reason other than due to the Optionee's death or disability (as defined and determined by the Company), the Optionee’s rights, if any, to exercise any then exercisable portion of this Option, shall terminate on the date of such termination, and thereafter such Option shall be forfeited and cancelled by the Company.

	
3.  

	
Reference and Effect.  Capitalized term not otherwise defined herein shall have the same meaning as it was referred to in the Previous Agreements. the Previous Agreements keep the effect, other than set forth herein above.

 

	
4.  

	
Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without reference to the principles of conflict of laws thereof.

 

 

  

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5.  

	
Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same instrument.

 

	
6.  

	
Headings.  The titles and headings of the various sections of this Agreement have been inserted for convenience of reference only and shall not be deemed to be a part of this Agreement.

 

	
7.  

	
Severability.  The invalidity or unenforceability of any provisions of this Agreement in any jurisdiction shall not affect the validity, legality or enforceability of the remainder of this Agreement in such jurisdiction or the validity, legality or enforceability of any provision of this Agreement in any other jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be enforceable to the fullest extent permitted by law.

 

[Signature page follows]

 

 

  

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IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly authorized officer, and the Optionee has hereunto set her hand, all as of the date specified above.

 

	 	 
CHINA PHARMA HOLDINGS, INC.

	 	 
	 	 
	 	 
By: /s/  Zhilin Li                        

	 	Name:  Zhilin Li 
	 	Title:  President & Chief Executive Officer 
	 	 
	 	 
	 	/s/ Frank Waung                       
	 	 
Frank Waung

 

              

  

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