Document:

exhibit102.htm

 

Exhibit 10.2

 

FOURTH

MODIFICATION AGREEMENT

BY THIS FOURTH MODIFICATION AGREEMENT (the "Agreement"), made and entered into as of the 20th day of September, 2010, WELLS FARGO BANK, NATIONAL ASSOCIATION (the "Lender"), and KNIGHT TRANSPORTATION, INC., an Arizona corporation (the "Borrower"), in consideration of the mutual covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, hereby confirm and agree as follows:

SECTION 1.    RECITALS; ACKNOWLEDGEMENTS.

1.1           The Borrower and the Lender entered into that Credit Agreement dated September 15, 2005, as modified by that Modification Agreement dated October 6, 2006, that Second Modification dated March 30, 2007 and that Third Modification dated September 16, 2008 (as amended from time to time, the "Credit Agreement") to provide financial accommodations to the Borrower as provided therein.

1.2           Borrower and the Lender desire to modify the Credit Agreement as set forth herein.

1.3           All undefined capitalized terms used herein shall have the meaning given them in the Credit Agreement.

SECTION 2.    CREDIT AGREEMENT.

2.1           The following definition in Section 1.1 of the Credit Agreement is hereby amended to read as follows:

"RLC Maturity Date" shall mean September 30, 2012.

2.2           Section 5.4(a) and (b) of the Credit Agreement is hereby amended and restated to read as follows:

(a)           within ninety (90) days after the end of each fiscal year of the Borrower, a copy of Borrower's Form 10-K for such fiscal year as filed with the SEC;

(b)           within forty-five (45) days after the end of each fiscal quarter of each fiscal year of the Borrower, a copy of Borrower's Form 10-Q for such fiscal quarter as filed with the SEC;

2.3           Section 6.8 of the Credit Agreement is hereby amended and restated to read as follows:

Section 6.8                       Loans, Advances, Investments.  Make any loans or advances to or investments in any person or entity exceeding $20,000,000.00 in the aggregate.

  

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SECTION 3.    OTHER MODIFICATIONS, RATIFICATIONS AND AGREEMENTS.

3.1           All references to the Credit Agreement in the other Loan Documents are hereby amended to refer to the Credit Agreement as hereby amended.

3.2           Borrower hereby reaffirms to the Lender each of the representations, warranties, covenants and agreements of Borrower set forth in the Credit Agreement, with the same force and effect as if each were separately stated herein and made as of the date hereof.

3.3           Borrower hereby ratifies, reaffirms, acknowledges, and agrees that the Note and the Credit Agreement represent valid, enforceable and collectible obligations of Borrower, and that there are no existing claims, defenses, personal or otherwise, or rights of setoff whatsoever with respect to any of these documents or instruments.  Borrower further acknowledges and represents that no event has occurred and no condition exists that, after notice or lapse of time, or both, would constitute a default under this Agreement, the Note or the Credit Agreement.

3.4           All terms, conditions and provisions of the Credit Agreement are continued in full force and effect and shall remain unaffected and unchanged except as specifically amended hereby. The Credit Agreement, as amended hereby, is hereby ratified and reaffirmed by Borrower, and Borrower specifically acknowledges the validity and enforceability thereof.

SECTION 4.    GENERAL.

4.1           This Agreement in no way acts as a release or relinquishment of those rights securing payment of the Loans.  Such rights are hereby ratified, confirmed, renewed and extended by Borrower in all respects.

4.2           The modifications contained herein shall not be binding upon the Lender until the Lender shall have received all of the following:

(a)           An original of this Agreement fully executed by the Borrower.

(b)           A Consent and Agreement of Guarantors, fully executed by the Guarantors.

(c)           Such resolutions or authorizations and such other documents as the Lender may require relating to the existence and good standing of the Borrower and the Guarantors and the authority of any person executing this Agreement or other documents on behalf of the Borrower and the Guarantors.

4.3           Borrower shall execute and deliver such additional documents and do such other acts as the Banks may reasonably require to fully implement the intent of this Agreement.

4.4           Borrower shall pay all costs and expenses, including, but not limited to, reasonable attorneys' fees incurred by the Lender in connection herewith, whether or not all of the conditions described in Paragraph 4.2 above are satisfied.  The Lender, at its option, but without any obligation to do so, may advance funds to pay any such costs and expenses that are the obligation of the 

  

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Borrower, and all such funds advanced shall bear interest at the highest rate provided in the Note and shall be due and payable upon demand.

4.5           Notwithstanding anything to the contrary contained herein or in any other instrument executed by Borrower or the Lender, or in any other action or conduct undertaken by Borrower or the Lender on or before the date hereof, the agreements, covenants and provisions contained herein shall constitute the only evidence of the Lender's consent to modify the terms and provisions of the Credit Agreement.  Accordingly, no express or implied consent to any further modifications involving any of the matters set forth in this Agreement or otherwise shall be inferred or implied by the Lender's consent to this Agreement.  Further, the Lender's consent to this Agreement shall not constitute a waiver (either express or implied) of the requirement that any further modification of the Credit Agreement shall require the express written consent of the Lender; no such consent (either express or implied) has been given as of the date hereof.

4.6           Time is hereby declared to be of the essence hereof of the Credit Agreement, and the Lender requires, and Borrower agrees to, strict performance of each and every covenant, condition, provision and agreement hereof, of the Credit Agreement.

4.7           This Agreement shall be binding upon, and shall inure to the benefit of, the parties hereto and their heirs, personal representatives, successors and assigns.

4.8           This Agreement is made for the sole protection and benefit of the parties hereto, and no other person or entity shall have any right of action hereon.

4.9           This Agreement shall be governed by and construed according to the laws of the State of Arizona.

  

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IN WITNESS WHEREOF, these presents are executed as of the date indicated above.

	 	
WELLS FARGO BANK, NATIONAL ASSOCIATION

	  	  	  
	  	  	  
	  	
By:

	
/s/ Keri Tignini

	  	
Name:

	
Keri Tignini

	  	
Its:

	
Vice President

	  	  	
LENDER

	  	  	  
	  	  	  
	  	
KNIGHT TRANSPORTATION, INC.

	  	  	  
	  	  	  
	  	
By:

	
/s/ David Jackson

	  	
Name:

	
David Jackson

	  	
Its:

	
Chief Financial Officer

	  	  	
BORROWER

 

 

  

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CONSENT AND AGREEMENT OF GUARANTORS

    Each of the undersigned Guarantors executed a Continuing Guaranty (each, a "Guaranty") as described in the Credit Agreement dated as of September 15, 2005 (as amended from time to time, the "Credit Agreement") between WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, and KNIGHT TRANSPORTATION, INC., an Arizona corporation.  Each of the undersigned Guarantors hereby consents and agrees to the modifications and all other matters contained in the foregoing Fourth Modification Agreement of even date herewith.

	 	
QUAD-K LLC, an Arizona limited liability company

	 	  	  
	 	  	  
	 	
By:

	
/s/ David Jackson

	 	
Name:

	
David Jackson

	 	
Its:

	
Chief Financial Officer

	 	  	  
	 	  	  
	 	
KNIGHT TRANSPORTATION SERVICES, INC., an Arizona corporation

	 	  	  
	 	  	  
	 	
By:

	
/s/ David Jackson

	 	
Name:

	
David Jackson

	 	
Its:

	
Chief Financial Officer

	 	  	  
	 	  	  
	 	
KNIGHT MANAGEMENT SERVICES, INC., an Arizona corporation

	 	  	  
	 	  	  
	 	
By:

	
/s/ David Jackson

	 	
Name:

	
David Jackson

	 	
Its:

	
Chief Financial Officer

	 	  	  
	 	  	  
	 	
KNIGHT REFRIGERATED, LLC, an Arizona limited liability company

	 	  	  
	 	  	  
	 	
By:

	
/s/ David Jackson

	 	
Name:

	
David Jackson

	 	
Its:

	
Chief Financial Officer

 

 

 

  

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KNIGHT TRUCK & TRAILER SALES, LLC, an Arizona limited liability company

	 	  	  
	 	  	  
	 	
By:

	
/s/ David Jackson

	 	
Name:

	
David Jackson

	 	
Its:

	
Chief Financial Officer

	 	  	  
	 	  	  
	 	
KNIGHT BROKERAGE, LLC, an Arizona limited liability corporation

	 	  	  
	 	  	  
	 	
By:

	
/s/ David Jackson

	 	
Name:

	
David Jackson

	 	
Its:

	
Chief Financial Officer

	 	  	  
	Dated as of:  September 20, 2010	  	  

 

 

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Return to Form 10-Qexhibit101.htm

 

Exhibit 10.1

 

EXECUTION COPY

 

THIRD AMENDMENT TO

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

This THIRD AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”), dated as of July 30, 2010, is by and among COVENANT TRANSPORT, INC., a Tennessee corporation (“CTI”), CTG LEASING COMPANY, a Nevada corporation (“CTGL”), SOUTHERN REFRIGERATED TRANSPORT, INC., an Arkansas corporation (“SRT”), COVENANT ASSET MANAGEMENT, INC., a Nevada corporation (“CAM”), COVENANT TRANSPORT SOLUTIONS, INC., a Nevada corporation (“CTS”), and STAR TRANSPORTATION, INC., a Tennessee corporation (“ST”, and together with CTI, CTGL, SRT, CAM, and CTS, individually a “Borrower” and collectively, “Borrowers”), COVENANT TRANSPORTATION GROUP, INC., a Nevada corporation and the owner (directly or indirectly) of all of the issued and outstanding capital stock of Borrowers (“Parent”), the Lenders (defined below) party to this Amendment, and BANK OF AMERICA, N.A., a national banking association, as agent for Lenders (in such capacity, “Agent”).  Capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Credit Agreement (defined below).

 

RECITALS:

A.           The Borrowers, the Parent, the lenders from time to time party thereto (the “Lenders”) and the Agent are parties to that certain Third Amended and Restated Credit Agreement, dated as of September 23, 2008 (as amended hereby and as otherwise amended, restated or modified from time to time, the “Credit Agreement”).

B.           The parties hereto have agreed to amend the Credit Agreement as set forth below.

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter contained, the parties hereto agree as follows:

 

SECTION 1.01 Amendments to Credit Agreement. Subject to the terms and conditions set forth herein, the following definitions appearing in Section 1.1 of the Credit Agreement are hereby amended and restated in their entirety as follows:

 

“Cash Collateralize: the delivery of cash to Agent, as security for the payment of Obligations, in an amount equal to (a) with respect to any LC Obligation relating to the $1,199,778.75  standby letter of credit to be issued on or about July 30, 2010 to the beneficiary State of Tennessee, 110% of such LC Obligation, (b) with respect to any LC Obligations other than described in clause (a) above, 105% of the aggregate of such LC Obligations, and (c) with respect to any inchoate, contingent or other Obligations (including Obligations arising under Bank Products), Agent’s good faith estimate of the amount due or to become due, including all fees and other amounts relating to such Obligations.  “Cash Collateralization” has a correlative meaning.”

 

 

  

  

  

 

“LC Conditions: the following conditions necessary for issuance of a Letter of Credit: (a) each of the conditions set forth in Section 6; (b) after giving effect to such issuance, (i) total LC Obligations do not exceed the Letter of Credit Subline, (ii) total LC Obligations with respect to standby Letters of Credit do not exceed the standby Letter of Credit sublimit of the Letter of Credit Subline, (iii) total LC Obligations with respect to commercial Letters of Credit do not exceed the commercial Letter of Credit sublimit of the Letter of Credit Subline, (iv) no Overadvance exists and (v) if no Revolver Loans are outstanding, the LC Obligations do not exceed the Borrowing Base (without giving effect to the LC Reserve for purposes of this calculation); (c) the expiration date of such Letter of Credit is (i) no more than 365 days from issuance (with the sole exception of the approximate $1,199,778.75 standby letter of credit to be issued on or about July 30, 2010 to the beneficiary State of Tennessee with an expiration date on or about July 30, 2013), in the case of standby Letters of Credit, (ii) no more than 120 days from issuance, in the case of documentary Letters of Credit, and (iii) at least 20 Business Days prior to the Revolver Termination Date (with the sole exception of the approximate $1,199,778.75 standby letter of credit to be issued on or about July 30, 2010 to the beneficiary State of Tennessee with an expiration date on or about July 30, 2013); (d) the Letter of Credit and payments thereunder are denominated in Dollars; and (e) the purpose and form of the proposed Letter of Credit is satisfactory to Agent and Issuing Bank in their discretion.”

 

SECTION 1.02 Effectiveness.  Upon receipt by the Agent of duly executed counterparts of this Amendment which, when taken together, bear the authorized signatures of each Borrower, the Agent and the Required Lenders, this Amendment shall be deemed effective as of the date set forth above (the “Amendment Effective Date”).

 

SECTION 1.03 Cross-References.  References in this Amendment to any Section are, unless otherwise specified, to such Section of this Amendment.

 

SECTION 1.04 Instrument Pursuant to Credit Agreement.  This Amendment is a Loan Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions of the Credit Agreement.

 

SECTION 1.05 Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).

 

SECTION 1.06 Counterparts.  This Amendment may be executed in any number of counterparts and by the different parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument.

 

SECTION 1.07 Severability.  In case any provision in or obligation under this Amendment or the other Loan Documents shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

 

  

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SECTION 1.08 Benefit of Agreement.  This Amendment shall be binding upon and inure to the benefit of and be enforceable by the respective successors and assigns of the parties hereto; provided that no Borrower may assign or transfer any of its interest hereunder without the prior written consent of the Agent and each Lender.

 

SECTION 1.09 Integration.  This Amendment represents the agreement of the Borrowers,  the Agent, and the Lenders with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties relative to the subject matter hereof not expressly set forth or referred to herein or in the other Loan Documents.

 

SECTION 1.10 Confirmation.  Except as expressly amended by the terms hereof, all of the terms of the Credit Agreement and the other Loan Documents shall continue in full force and effect and are hereby ratified and confirmed in all respects.

 

SECTION 1.11 Loan Documents.  Except as expressly set forth herein, the amendments provided herein shall not by implication or otherwise limit, constitute a waiver of, or otherwise affect the rights and remedies of the Lenders or the Agent under the Credit Agreement or any other Loan Document, nor shall they constitute a waiver of any Event of Default, nor shall they alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document.  Each of the amendments provided herein shall apply and be effective only with respect to the provisions of the Credit Agreement specifically referred to by such amendments.  Except as expressly amended herein, the Credit Agreement and the other Loan Documents shall continue in full force and effect in accordance with the provisions thereof.  As used in the Credit Agreement, the terms “Agreement”, “herein”, “hereinafter”, “hereunder”, “hereto” and words of similar import shall mean, from and after the date hereof, the Credit Agreement.

 

(Signature Pages Follow)

  

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IN WITNESS WHEREOF, each of the parties hereto has caused a counterpart of this Amendment to be duly executed and delivered as of the date first above written.

 

	  	

BORROWERS:

	 	 
	  	COVENANT TRANSPORT, INC.
	  	  
	 	
By: 

	
/s/ M. David Hughes                                           

	  	Name: 	
M. David Hughes

	  	Title: 	
Senior Vice President of Fleet Management

and Procurement and Treasurer

 

 

	 	CTG LEASING COMPANY
	  	
SOUTHERN REFRIGERATED TRANSPORT, INC.

	 	STAR TRANSPORTATION, INC.
	  	  
	 	
By: 

	
/s/ M. David Hughes                                           

	  	Name: 	
M. David Hughes

	  	Title: 	
Vice President

 

 

	 	
COVENANT ASSET MANAGEMENT, INC.

	 	
COVENANT TRANSPORT SOLUTIONS, INC.

	  	  
	 	
By: 

	
/s/ M. David Hughes                                           

	  	Name: 	
M. David Hughes

	  	Title: 	
Treasurer

 

 

 

Third Amendment to Third Amended and Restated Credit Agreement

Signature Page

  

 

  

 

 

 

	 	
PARENT:

	 	 
	  	
COVENANT TRANSPORTATION GROUP, INC.

	  	  
	 	
By: 

	
/s/ M. David Hughes                                           

	  	Name: 	
M. David Hughes

	  	Title: 	
Senior Vice President and Treasurer

 

 

 

Third Amendment to Third Amended and Restated Credit Agreement

Signature Page

  

 

  

 

 

 

 

	 	
AGENT AND LENDERS:

	  	
 

	 	BANK OF AMERICA, N.A.,
	 	
as Agent and Lender

	  	  
	 	
By: 

	
/s/ Douglas Cowan                                     

	  	Name: 	
Douglas Cowan

	  	Title: 	
Senior Vice President

 

 

 

 

Third Amendment to Third Amended and Restated Credit Agreement

Signature Page

  

 

  

 

 

 

	 	
JPMORGAN CHASE BANK, N.A.

	  	  
	 	
By: 

	
/s/ Christopher D. Capriotti                                    

	  	Name: 	
Christopher D. Capriotti

	  	Title: 	
Senior Vice President

	  

 

Third Amendment to Third Amended and Restated Credit Agreement

Signature Page

 

 

Back to Form 10-Q

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