Document:

Exhibit 10.12

 

CONFIDENTIAL

 

CONFIDENTIAL TREATMENT REQUESTED: Certain portions of this document have been omitted pursuant to a request for confidential treatment and, where applicable, have been marked with an asterisk (“[****]”) to denote where omissions have been made. The confidential material has been delivered separately to the Securities and Exchange Commission.

 

APPLICATION SERVICES AGREEMENT

 

THIS APPLICATION SERVICES AGREEMENT (the “Agreement”) is made as of February 3, 2012, (the “Effective Date”), by and between Corcentric Collective Business Systems, Inc., a Virginia corporation having its principal place of business at 8300 Greensboro Dr., Suite 950, McLean, Virginia 22102 (“Corcentric”), and Daimler Trucks North America LLC, a limited liability company having its principal place of business at 4747 N. Channel Avenue, Portland, Oregon 97217 (“DTNA”).

 

WHEREAS, Corcentric, among other things, develops software applications to assist resellers, distributors and retailers with selling products, purchasing products and supplies from vendors;

 

WHEREAS, DTNA is a company that among other things is a wholesale supplier to a network of independent authorized dealers of service parts that DTNA purchases from manufacturers, suppliers and distributors of such parts;

 

WHEREAS, Corcentric has offered to establish access and maintain for DTNA an Internet-based portal that will enable DTNA Dealers (as defined below) to transact business electronically with fleets;

 

WHEREAS, DTNA and its Dealers desire to obtain from Corcentric a license to access certain applications through means such as the Internet, and Corcentric is willing to grant to DTNA a license to access such software applications in accordance with the terms and conditions contained in this Agreement; and

 

WHEREAS, DTNA desires to obtain from Corcentric certain services related to the installation, integration, maintenance and/or technical support of such software applications, and Corcentric is willing to provide such services in accordance with the terms and conditions contained in this agreement.

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties agree as follows:

 

1.                                      DEFINITIONS.  The following terms shall have the following meanings:

 

Corcentric/DTNA Application Services Agreement

 

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1.1                               “Application” shall mean the Corcentric software, individually and/or severally operating on Corcentric Application Servers, as more fully described in EXHIBIT B-1, in connection with the establishment and operation of the Portal, which may be amended from time to time by mutual consent.

 

1.2                               “Application Enhancements” or “Enhancements” shall mean customized changes to the private websites developed for Corcentric clients and customized changes, modifications, or improvements to the Application as requested by a Corcentric client, subject to Section 7.2 of this Agreement.

 

1.4                               “Application Server” shall mean servers owned, leased or otherwise controlled by Corcentric.

 

1.5                               “Application Maintenance Changes” or “Maintenance Changes” shall mean any routine changes in the Application by Corcentric that are made generally available to Corcentric licensees without cost or charge, typically consisting of, fixes, patches, minor improvements, or changes to correct design faults, discrepancies or any other defects; as well as minor revisions to improve, but not significantly change any function.  Application Maintenance Changes shall be provided during the term of their Agreement to DNA at no additional charge.

 

1.6                               “Application Upgrades” or “Upgrades” shall mean any major upgrades, revisions, advancements or rewrites to the Application by Corcentric that typically involve modifications to the Intelligent Trading Engine®, which are made available to Corcentric licensees at additional charge, as set forth in Section 7.2 of this Agreement.

 

1.7                               “Business Requirements Document” or “BRD” shall mean document describing the Program’s specifications, jointly developed and approved by Corcentric and DTNA, regarding the implementation and operation of the Program described in this agreement.  The BRD is incorporated as part of this agreement as Exhibit B.

 

1.8                               “Confidential Information” shall mean that information which is set forth in Section 12.1 of this Agreement.

 

1.9                               “Corcentric Technology” shall mean the Application, Application Server, the Portal, Corcentric Marks Application Enhancements, Application Maintenance Changes, Application Upgrades, and related intellectual property rights, including but not limited to these items set forth on EXHIBITS B-1, B-2, and B-3.

 

1.10                        “DTNA Content” shall mean the materials provided by or created by or on behalf of DTNA (such as the DTNA Marks, an HTML template for the “look and feel” of the files, data, and formulae) and provided to Corcentric by DTNA or a third party under DTNA’s direction for incorporation into the Application, as more fully described in EXHIBIT A.

 

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1.11                        “DTNA Dealer” or “Dealer” shall mean an entity engaged in the marketing of service parts and supplies that has been appointed as an authorized dealer of and is in good standing with DTNA, its subsidiaries, or affiliates, including but not limited to, Freightliner Trucks, Sterling Trucks, Western Star Trucks, Thomas Built Buses, or Detroit Diesel Distributors.

 

1.12                        “End User” shall mean DTNA, any DTNA Dealer or any customer of a DTNA Dealer; that accesses, connects to, logs onto or otherwise uses the Application, whether by means of (i) an online connection through the Internet; (ii) direct connection to the Application Server; or (iii) any other form of connection to the Application Server, such as through use of an Intranet.

 

1.13                        “End User License” shall mean any short form, end user license/terms of service agreement.

 

1.14                        “Marks” shall mean logos, trademarks, service names, trade names, or domain names to be provided by one party to the other in accordance with this Agreement.

 

1.15                        “New Products” shall mean discrete, identifiable software or consulting packages developed generated, licensed, or acquired by Corcentric that are marketed or that perform activities or functions distinguishable and separate from the Application, and which are not bundled with the same version of the Application as provided without additional cost, to any customer.  At DTNA’s request, an updated EXHIBIT B-1 will be provided by Corcentric and shall replace the then existing EXHIBIT B-1.

 

1.16                        “Portal” shall mean that Internet-based site Corcentric will provide pursuant to this Agreement, to enable DTNA and its Dealers to transact business electronically with trading partners.

 

1.17                        “User Data” shall mean information collected, inputted or otherwise provided to Corcentric by End Users accessing the Application.

 

2.                                      ASP LICENSE; DTNA CONTENT LICENSE.

 

2.1                               Application License.  Subject to the terms and conditions contained in this Agreement, and further subject to any prior licenses or applicable license provisions of software agreements necessary to operate the Application as set forth in EXHIBIT B-2 (“Third-Party Licenses”), Corcentric hereby grants to DTNA, and DTNA hereby accepts, a worldwide, non-exclusive, non-transferable right and license to access, for internal use only, the Application during the term hereof, solely in the form of compiled, executable code, solely through the Application Server and solely for the provision of the Application to End Users.  Any rights not expressly granted by Corcentric to DTNA are reserved by Corcentric, and all implied licenses are disclaimed.

 

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Corcentric shall be solely liable for payment of applicable license fees under Third Party Licenses, and DTNA shall not exceed the scope of the licenses granted under this Agreement.

 

2.2                               Third Party Licenses and Agreements.  Corcentric agrees to make available for inspection copies of all Third-Party Licenses referenced in subparagraph 2.1 of this Agreement, only and to the extent not containing confidential information and not subject to an obligation of confidentiality, which in such an event shall be identified to DTNA.

 

2.3                               Restrictions.  DTNA shall not assign, sublicense, market, co-brand, private label, or grant to third parties, the right to link to the Application or the Application Server, sell, lease, rent, distribute, convey, transfer, pledge as security, or otherwise encumber, the rights and licenses granted under this Agreement with respect to the Corcentric Technology or Corcentric’s Confidential Information.  DTNA may not reverse engineer, decompile or disassemble any of the Corcentric Technology.

 

2.4                               Third-Party Constraints.  DTNA shall undertake all reasonable measures necessary in its control to ensure that its use of the Corcentric Technology or Corcentric’s Confidential Information complies in all respects with any contractual or other legally binding obligations of Corcentric; of which DTNA is made aware by Corcentric.  DTNA shall not enter into any contractual relationship or other legally binding obligation with any third party that shall have the purpose or effect of encumbering the use by Corcentric of the Corcentric Technology.

 

2.5                               Quality Control of Marks.  Each party hereby grants to the other party a nonexclusive, nontransferable worldwide license to use such party’s Marks only in connection with the use of the Application or as is otherwise necessary to fulfill the obligations of that party under this Agreement.  Each party understands and agrees that any use of the other party’s Marks shall not create any right, title or interest in or to such Marks and that all such uses and goodwill associated with the Marks will be for the benefit of the party who owns the Mark.  The owner of the Mark may, from time-to-time, request in writing specimens of all uses of the Marks by the other party to assess the level of consistency and quality of use of the respective trademark and to ensure that the Mark maintains the consistency and quality of said trademark standards throughout the term of this Agreement.  The owner of the Mark also reserves the right to require the licensee to discontinue use of any Mark that it reasonably believes will have a detrimental effect on its business.  The licensee of the Mark shall, upon the written request of the owner of the Mark, cooperate with the owner to ensure that the use of its Marks conforms to the owner’s trademark policies and use guidelines as in effect from time to time.

 

2.6                               License Grant by DTNA.  If DTNA provides DTNA Content to Corcentric, DTNA hereby grants to Corcentric a non-exclusive, worldwide license to: (a) use the DTNA Content in connection with the provision of the Application to DTNA; (b)

 

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reproduce the DTNA Content and modify it in connection with the provision of the Application to DTNA; and (c) reproduce, distribute, publicly perform, publicly display and digitally perform the DTNA Content as incorporated in the Application to DTNA from the Application Server.  Any rights not expressly granted by DTNA to Corcentric are reserved by DTNA, and all implied licenses are disclaimed.  Corcentric shall not exceed the scope of the licenses granted hereunder and all rights granted hereunder will immediately terminate upon the termination of this Agreement.

 

3.                                      HOSTING AND CONNECTIVITY FOR THE APPLICATION.

 

3.1                               Hosting of the Application.  Corcentric shall provide for the installation of the Application on one or more Application Servers.  Corcentric shall bear sole responsibility for the operation and maintenance of the Application Server hardware, its operating system and/or its platform software, and any third-party application software associated with, or necessary for, the operation and functioning of the Application Server, including functions associated with access to the Application in accordance with this Agreement, and the terms and conditions set forth in EXHIBIT D.

 

3.2                               Link to the Application Server.  Unless contracted for, Corcentric shall not be responsible for DTNA’s or any End Users’ Internet connection to the Application Server and Application.  DTNA or each End User shall provide, operate and maintain any computer equipment and operating system software required to access the Application.

 

3.3                               Corcentric Technology.  Corcentric shall be solely responsible for creating; managing, editing, reviewing, deleting, maintaining and otherwise controlling the Corcentric Technology.  Corcentric will guarantee a minimum access speed at its Application Server equivalent to that of a T1 line or better.

 

3.4                               Advertising.  Unless otherwise authorized and approved by Corcentric, there shall be no advertisements or unsolicited electronic announcements on the Portal.

 

4.                                      PAYMENTS.

 

4.1                               Fees.  SEE EXHIBIT C

 

4.2                               Late Payments; Interest.  Any portion of any fee or other amount payable hereunder that is not paid within 30 days when due will accrue interest at one and one-half percent (1.5%) per month or the maximum rate permitted by applicable law, whichever is less, from the due date until paid.

 

4.3                               [****]

 

4.4                               Initial Start up shall include Centralized Billing Transition Project Business Requirements Document “BRD”.

 

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4.5                               Implementation, Professional Services.  For installation, professional, and/or technical support services that are in addition to the initial start up integration defined in the “Business Requirements Document” provided to End Users and that are authorized and agreed to by the parties, Corcentric shall charge DTNA for these services at Corcentric’s standard, published hourly rates for such services or at the rates it charges to its most favored clients for such services, whichever are lower, which rates are subject to change upon 30 days advance written notice, and DTNA shall reimburse Corcentric for reasonable out-of-pocket expenses related to travel, lodging and materials, if any.

 

4.6                               Taxes.  Each party shall pay any applicable sales, use, property, value added, withholding, excise, and federal, state, and/or local taxes (if any), directly and solely related to its performance of obligations or exercise of rights under this Agreement.

 

5.                                      END USER USE OF THE APPLICATION.

 

5.1                               End User Access to Services; Compliance.  Subject to the terms and conditions of this Agreement, DTNA shall be permitted to allow any End User to access, use or obtain the Application through the Application Server.  Corcentric will provide each new End User with the End User License prior to participation in the program.  End Users must agree to the terms of an End User License as updated from time to time by Corcentric and approved by DTNA; any such agreement may be available for viewing on line.  The terms and conditions of any End User License shall not vary the terms and conditions of this Agreement.  Should any End User express concern or be non-respondent, DTNA will attempt to contact the End User to resolve the issue and submit the End User License to Corcentric.

 

5.2                               Authorization.  Each party agrees to notify the other party immediately, of any unauthorized use of the Application or any other breach of its security including, but not limited to, unauthorized use of a password.  Corcentric has the right but not the obligation to monitor the use of the Application by End Users and/or the content of any user session.  Corcentric reserves the right at all times to monitor, review, retain and/or disclose any information as necessary to satisfy any applicable law, regulation, legal process or governmental request.  In the event of any third party request or demand for disclosure or production of a party’s Confidential Information, the party that received such a request or demand shall provide the other party with ten (10) days notice or the maximum amount of notice otherwise available (whichever is greater) in which to challenge the request or demand through appropriate legal process.

 

5.3                               Links to Third Party Sites.  The links included within the Application may let the End User leave the Application and the Corcentric web sites (“Linked Sites”).  The Linked Sites are not under the control of Corcentric and Corcentric is not responsible

 

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for the contents of any Linked Site or any link contained in a Linked Site, or any changes or updates to such sites.  Corcentric is not responsible for any form of transmission received front any Linked Site.

 

5.4                               No Spam.  Corcentric immediately may terminate any End User account that it believes, in its sole discretion, is transmitting or is otherwise connected with any spam or other unsolicited commercial e-mail or other communication.

 

5.5                               Data Access.  During the term of this Agreement, Corcentric may view, review or otherwise analyze the data stored, inputted or otherwise collected by the Application for maintenance, system administration, technical support, and for any other purpose necessary for Corcentric to perform under this Agreement and/or to comply with laws and regulations, subject to the provisions of Section 6.2 of this Agreement.

 

5.6                               Enforcement of Restrictions.  DTNA shall cooperate with Corcentric to enforce the restrictions contained in any End User License.  If a breach occurs, Corcentric and DTNA cooperatively shall take corrective action to remedy the breach, including, if applicable, termination of the affected End User License.

 

5.7                               Third Party Beneficiary.  Each party acknowledges and agrees that Corcentric shall be a third-party beneficiary of all contracts executed between DTNA and any third party regarding any portion of the Corcentric Technology or Corcentric’s Confidential Information.  DTNA acknowledges that Corcentric shall have the right to institute and/or join any action regarding a breach of any of the terms of this Agreement and/or any portion of the Corcentric Technology.

 

5.8                               Dealer Integration.  Corcentric agrees to utilize reasonable efforts to integrate any DTNA Dealer to the Application requested by DTNA (this integration function excludes any applicable charges that may flow from a Dealer’s business system vendor or other third party) provided, however, not all DTNA Dealers may be immediately integrated.  The parties shall coordinate and agree upon an integration schedule focusing initially on the highest volume Dealers and Suppliers.  There will be no upfront cost to a DTNA Dealer which utilizes the manual invoice provided for DTNA through the Corcentric Portal.

 

6.                                      PROPRIETARY RIGHTS.

 

6.1                               Ownership/Intellectual Property Rights.  DTNA acknowledges that, as between the parties, Corcentric retains all right, title, and interest in and to all components of the Corcentric Technology and related intellectual property.  Corcentric acknowledges, as between the parties, DTNA retains all right, title and interest in and to DTNA’s Confidential Information and related intellectual property.

 

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6.2                               End User Information.  DTNA shall be the sole and exclusive owner of all User Data.  User Data shall be deemed DTNA’s Confidential Information.  During the term of this Agreement, DTNA grants Corcentric a non-exclusive right and license to use the User Data to provide the Corcentric Technology to DTNA.  Notwithstanding the foregoing, Corcentric only shall have the right to report the User Data in the aggregate, with data from other Corcentric clients and customers to a third party, for purposes of Corcentric’s marketing, provided that the data does not identify the specific source of such data, and will not be used to market to DTNA Dealers.

 

7.                                      MAINTENANCE.

 

7.1                               Support Obligations.  Corcentric shall be responsible for providing End Users with First Level Support. “First Level Support” means providing assistance to Dealers, Suppliers, fleet locations and End Users with respect to the functions, features, permission to use the Application, and who to call for technical support after the “Initial Set-up” has been preformed.  Corcentric will be responsible for the “Initial Set-up” which includes adding Dealers, Suppliers, fleet locations and End Users.

 

7.2                               Updates to the Application.  During the term of this Agreement.  Corcentric agrees to provide DTNA at no charge with any and all Maintenance Changes to the Corcentric Technology that are made available to any other Corcentric customer at no charge.  Corcentric also shall use commercially reasonable efforts to provide Enhancements as requested by DTNA to the Corcentric Technology at Corcentric published rates.  Corcentric also agrees to periodically inform DTNA of Application Upgrades and Enhancements that Corcentric may have developed for other customers or clients on a non-exclusive basis and that Corcentric in its discretion determines may be useful to DTNA, and to make available to DTNA the same or similar Application Upgrades and Enhancements at the Lowest cost charged to such other customers or clients.  In addition, should Corcentric develop or acquire New Products that are made available to other customers or clients on a non-exclusive basis and that Corcentric in its discretion determines may be useful to DTNA, Corcentric shall make available to DTNA the same or similar New Products upon similar terms and at the lowest cost charged to such other customers or clients.

 

8.                                      WARRANTIES.

 

8.1                               Mutual Representations.  Each patty hereby represents and warrants (i) that it is duly organized, validly existing and in good standing under the laws of its jurisdiction of incorporation; (ii) that it has the legal right and authority to enter into and perform its obligations under this Agreement; (iii) that the execution and performance of this Agreement will not conflict with or violate any provision of any law having applicability to such party; and (iv) that this Agreement, when executed and delivered, will constitute a valid and binding obligation of such party and will be enforceable against such party in accordance with its terms.

 

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8.2                               Compliance with Laws.  Each party shall undertake all measures necessary to ensure that its use of the Corcentric Technology complies in all respects with all applicable laws, statutes, regulations, ordinances or other rules promulgated by governing authorities having jurisdiction over the parties or the Corcentric Technology.

 

8.3                               Availability During the Term.  Corcentric shall use commercially reasonable efforts to make the Application Server available to End Users subject to maintenance and force majeure events.

 

8.4                               No Other Warranties.  EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 8, EACH PARTY DISCLAIMS ALL OTHER WARRANTIES AND CONDITIONS, EXPRESS, IMPLIED AND STATUTORY, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF TITLE, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE.  Corcentric does not warrant that the operation of the Application will be uninterrupted or error-free and Corcentric will make best efforts to correct any errors in a reasonable amount of time but that some errors could occur which can not be corrected which will be brought to the attention to DTNA immediately.  DTNA specifically agrees that Corcentric shall not be responsible for unauthorized access to or alteration of End User transmissions or data, any material or data sent or received or not sent or received.  DTNA specifically agrees that Corcentric is not responsible or liable for any threatening, defamatory, obscene, offensive or illegal content or conduct of any other party.  DTNA specifically agrees that Corcentric is not responsible for any content sent using and/or included in the Application by any End User or third party.

 

9.                                      INDEMNITY.

 

9.1                               Indemnity by DTNA.  DTNA shall indemnify, defend and hold harmless Corcentric against all claims, losses, damages, liabilities, costs and expenses, including reasonable attorneys’ fees, to the extent that such claims arise out of (a) the infringement by the DTNA Content of any third party copyright, trademark or trade secret, patent or other intellectual property rights, (b) the use of, or the inability to use, the Application by End Users, and (c) a breach of any representation, warranty or obligation by DTNA.

 

9.2                               Corcentric’s Indemnity.  Corcentric shall indemnify, defend and hold harmless DTNA against all claims, losses, damages, liabilities, costs and expenses, including reasonable attorneys’ fees, to the extent that such claims arise out of (a) the infringement by the Corcentric Technology of any third party copyright, trademark or trade secret, patent or other intellectual property right unless the Corcentric Technology is otherwise modified at the request or direction of DTNA for DTNA’s exclusive use, (b) any license fees payable pursuant to the Third-Party Licenses, and (c) a breach of any representation, warranty, or obligation of Corcentric, subject to Section 10 of this Agreement.

 

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9.3                               Mechanics of Indemnity.  The party seeking indemnification (the “Indemnified Party”) shall: (a) give the proposed indemnifier (the “Indemnifying Party”) notice of the relevant claim, (b) cooperate with the Indemnifying Party, at the Indemnifying Party’s expense, in the defense of such claim, and (c) give the Indemnifying Party the right to control the defense and settlement of any such claim, except that the Indemnifying Party shall not enter into any settlement that affects the Indemnified Party’s rights or interest without the Indemnified Party’s prior written approval.  The Indemnified Party shall have the right to participate in the defense at its expense.

 

10.                               LIMITATION OF LIABILITY.

 

10.1                        Cumulative Liability.  THE CUMULATIVE LIABILITY OF CORCENTRIC TO DTNA FOR ALL CLAIMS ARISING FROM OR RELATING TO THIS AGREEMENT OR THE CORCENTRIC TECHNOLOGY, INCLUDING ANY CAUSE OF ACTION SOUNDING IN CONTRACT, TORT, OR STRICT LIABILITY, SHALL NOT EXCEED THE TOTAL AMOUNT OF ALL COMPENSATION AND REVENUE PAID OR OTHERWISE PAYABLE TO CORCENTRIC BY DTNA DURING THE TWELVE (12) MONTH PERIOD PRIOR TO THE DATE UPON WHICH ANY SUCH LIABILITY ARISES.  THIS LIMITATION OF LIABILITY IS INTENDED TO APPLY WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THIS AGREEMENT HAVE BEEN BREACHED OR HAVE PROVEN INEFFECTIVE.  THIS PARAGRAPH AND THE LIMITATIONS CONTAINED IN THIS PARAGRAPH SHALL NOT APPLY TO DAMAGES RESULTING FROM BREACH OF CONFIDENTIALITY AS SET FORTH IN SECTION 12, INTENTIONAL TORTS OR GROSS NEGLIGENCE OF CORCENTRIC.  ANY CLAIM ARISING OUT OF THE PERFORMANCE OF SERVICES OR PAYMENT OF COMPENSATION AND REVENUE MUST BE MADE IN WRITING TO THE RESPONSIBLE PARTY WITHIN TWELVE (12) MONTHS OF THE DATE WHEN SUCH PERFORMANCE OR PAYMENT WAS COMPLETED OR SUPPOSED TO HAVE BEEN COMPLETED (UNLESS THE SAME WAS CONCEALED).

 

10.2                        Exclusion of Damages.  IN NO EVENT SHALL CORCENTRIC BE LIABLE TO DTNA FOR ANY INCIDENTAL, DIRECT, INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, REGARDLESS OF THE NATURE OF THE CLAIM, INCLUDING WITHOUT LIMITATION LOST PROFITS, COSTS OF DELAY, ANY FAILURE OF DELIVERY, BUSINESS INTERRUPTION, COSTS OF LOST OR DAMAGED DATA OR DOCUMENTATION OR LIABILITIES TO THIRD PARTIES ARISING FROM ANY SOURCE, EVEN IF CORCENTRIC HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.  THIS LIMITATION UPON DAMAGES AND CLAIMS IS INTENDED TO APPLY WITHOUT REGARD TO WHETHER OTHER PROVISIONS OF THIS AGREEMENT HAVE BEEN BREACHED OR HAVE PROVEN INEFFECTIVE.  THIS PARAGRAPH AND THE LIMITATIONS CONTAINED IN THIS PARAGRAPH SHALL NOT APPLY TO

 

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DAMAGES RESULTING FROM INTENTIONAL TORTS OR GROSS NEGLIGENCE OF CORCENTRIC.  ANY CLAIM ARISING OUT OF THE PERFORMANCE OF SERVICES OR PAYMENT OF COMPENSATION AND REVENUE MUST BE MADE IN WRITING TO THE RESPONSIBLE PARTY WITHIN TWELVE (12) MONTHS OF THE DATE WHEN SUCH PERFORMANCE OR PAYMENT WAS COMPLETED OR SUPPOSED TO HAVE BEEN COMPLETED (UNLESS THE SAME WAS CONCEALED).

 

11.                               TERM AND TERMINATION.

 

11.1                        Term.  The term of this Agreement shall commence as of the date of Corcentric’s first billing and shall expire on the fifth anniversary from the date of Corcentric’s first billing of this Agreement (“Initial Term”), and thereafter automatically shall renew for subsequent one year terms (each a “Renewal Term”) unless after the Initial Term and during any subsequent Renewal Term, one party provides written notice of termination to the other party, at least one hundred eighty (180) days prior to the expiration of the Initial Term or subsequent Renewal Term.

 

11.2                        Termination.  Either party may terminate this Agreement upon the other party’s material breach if such material breach continues for thirty (30) days after written notice, without substantial efforts to cure.  If there are substantial efforts to cure, any such material breach that continues for sixty (60) days after written notice shall constitute automatic termination of this Agreement, without further notice.

 

11.3                        Post-Termination.  Upon the effective date of expiration or termination, all licenses to use the Application shall terminate immediately.  After expiration or termination, DTNA no longer shall have access to the Application and shall remove any representations or references to the Application from DTNA’s system.  In the event of any termination of this Agreement, and only if End Users are in compliance with the provisions of Section 12 of this Agreement, DTNA may continue to access the Application for up to sixty (60) days following such termination, exercisable upon written notice to Corcentric received no less than five (5) business days prior to such termination, together with payment to Corcentric with such notice of an amount equal to the sum of (a) all amounts previously invoiced to DTNA by Corcentric or otherwise due and payable by DTNA to Corcentric not yet paid in full or disputed, plus (b) all applicable late charges, interest, fees, costs and expenses relative to undisputed past charges; additionally, (c) DTNA shall pay to Corcentric all ongoing fees (whether for Monthly Maintenance Fees, Transaction Fees, Escrow Fees, or otherwise) billed to or otherwise payable by DTNA for the sixty (60) days following the date of such termination, under the same terms as provided during the Term of this Agreement.

 

11.4                        Survival.  Any provision that by its nature survives shall survive expiration or termination of this Agreement.

 

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12.                               CONFIDENTIALITY.

 

12.1                        Confidential Information.  During the term of this Agreement and at all times thereafter, each party and its officers, directors, employees, parents, subsidiaries, affiliates, Dealers and representatives, (collectively, “Representatives”), shall keep confidential and not make use of any proprietary business, financial, technical, economic, sales, and/or other types of proprietary business information, transactions and data (including all trade secrets), in whatever form, whether oral, written, or electronic (collectively the “Confidential Information”).  Each party agrees to hold such Confidential Information in confidence and (i) to take all reasonable precautions to protect such Confidential Information, (ii) not to divulge any such Confidential Information or any other information derived therefrom to any third person, except such party’s Representatives who have a valid business purpose to have access to the other party’s Confidential Information, except that Corcentric shall not disclose any information relating to DTNA’s pricing policies or prices of its products and services to any employee of Corcentric’s parent company, AmeriQuest Transportation Services, Inc., and (iii) not to make any use whatsoever at any time of such Confidential Information except as may be necessary or appropriate to fulfill such party’s obligations under this Agreement.  This restriction shall not apply to any Confidential Information that (a) becomes known generally to the public through no fault of the disclosing party; (b) is required by applicable law, legal process, or any order or mandate of a court or other governmental authority to be disclosed; or (c) reasonably is believed by the disclosing party, based upon the advice of legal counsel, to be required to be disclosed in defense of a lawsuit or other legal or administrative action; provided, that in the case of clauses (b) or (c), the disclosing party shall provide such notice as is set forth in Section 5.2 of this Agreement.

 

Any employee given access to any such Confidential Information shall be notified of the existence of the obligation to protect same contained in this Confidential Agreement, and each party shall use reasonable efforts to ensure compliance with this provision.

 

Each party acknowledges and agrees that due to the unique nature of the Confidential Information, there can be no adequate remedy at law for any breach of the obligations hereunder, and any such breach may allow one party or a third party to compete unfairly resulting in irreparable harm to the other party.  Notwithstanding any of the provisions of this agreement, the damaged party shall be entitled to appropriate equitable relief in addition to whatever remedies it might have at law and to be indemnified from any loss or harm, including, without limitation, lost profits and attorney’s fees, in connection with any breach or enforcement of the disclosing party’s obligations under this paragraph for the unauthorized use or release of any such Confidential Information.  A breach of this Section shall constitute a material breach of this Agreement.  The parties shall each return all confidential documents (without retaining any copies, extracts or other reproduction in whole or in part) upon the termination of this Agreement.  The obligations of the parties under this Article shall survive completion or termination of this Agreement.

 

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12.2                        Return of Confidential Information.  Upon termination or expiration of this Agreement for any reason or upon request, each party shall return the original and all copies of the other party’s Confidential Information in its possession or control at the other party’s direction.  In the event Confidential Information is in a digital format, each party promptly will provide the other party with a declaration under oath that all files and back-up files have been purged of the other party’s Confidential Information, and such declaration(s) shall explain with particularity what measures have been undertaken to accomplish this goal.

 

13.                               GENERAL PROVISIONS.

 

13.1                        Governing Law.  This Agreement will be governed and construed in accordance with the laws of the State of Oregon without giving effect to its conflict of laws principles.

 

13.2                        Publicity.  Either party may issue a press release regarding this relationship, only with the other party’s prior written approval.  Neither party shall disclose the terms of this Agreement to any third party, except as required by law or to potential investors or merger parties under standard confidentiality restrictions.

 

13.3                        Severability; Headings.  If any provision of this Agreement is held to be invalid or unenforceable for any reason, the remaining provisions will continue in full force without being impaired or invalidated in any way.  The parties agree to replace any invalid provision with a valid provision that most closely approximates the intent and economic effect of the invalid provision.  Headings are for reference purposes only and in no way define, limit, construe or describe the scope or extent of such section, or in any way affect this Agreement.

 

13.4                        Independent Contractors.  The parties to this Agreement are independent contractors, and no agency, partnership, franchise, joint venture or employee-employer relationship is intended or created by this Agreement.  Neither party may take any actions that are binding on the other party, without the consent of the other party.  Without limiting the foregoing, neither party shall make any representations or warranties to third parties on behalf of the other party.

 

13.5                        Notice.  Any notices required or permitted under this Agreement shall be given to the appropriate party at the address specified above or at such other address as a party shall specify in writing.  Unless otherwise specified, such notice shall be deemed given: upon personal delivery; if sent by fax, upon confirmation of receipt; if sent by certified or registered mail, postage prepaid, three (3) days after the date of mailing; or, if by overnight courier, upon receipt.

 

13.6                        Entire Agreement; Waiver.  This Agreement and the Exhibits attached set forth the entire understanding and agreement of the parties, and supersede any and all

 

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prior or contemporaneous oral or written agreements or understandings between the parties, as to the subject matter of this Agreement.  In the event of any conflict between the Agreement and an Exhibit, the terms of the Exhibit shall control.  Except as otherwise provided in this Agreement, this Agreement may be changed only by writing and signed by both parties.  Waiver by either party of a breach of any provision contained in this Agreement must be in writing, and no such waiver shall be construed as a waiver of any succeeding breach of such provision or a waiver of the provision itself.

 

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

 

13.8                        Covenant Not to Compete.  During the first [****] of the Initial Term of this Agreement, Corcentric agrees that it will not offer the Application to any Competitors of DTNA (defined below) without DTNA’s prior written consent and that Corcentric shall take all steps reasonably necessary or requested by DTNA to cause Corcentric’s employees to abide by this covenant, If either the length of time or the scope of this Covenant should be determined to be unreasonable, this Covenant shall be enforceable for a reasonable time and as to a reasonable scope, as determined by a court of competent jurisdiction.  The term “Competitors” means the national fleet parts and services programs sponsored by [****]

 

13.9                        Execution of Documents.  Each party agrees to execute such documents and take such other actions as are reasonably necessary to effectuate the provisions of this Agreement at the other party’s request and sole expense.

 

13.10                 Assignment.  Neither party shall assign or otherwise transfer this Agreement or any rights or obligations under this Agreement, in whole or part, without the prior written consent of the other party.

 

13.11                 Inurement and Binding Effect.  This Agreement shall inure to the benefit of the parties and their respective successors and assigns and be binding upon the parties and their respective successors and assigns.  Any amalgamation, consolidation, merger or other reorganization shall be deemed to be an assignment of this Agreement.

 

13.12                 Force Majeure.  Except as otherwise expressly provided in this Agreement, Corcentric shall not be responsible or liable to DTNA for nonperformance or continued delay in performance of any of the terms of this Agreement due to acts or occurrences beyond the control of Corcentric, including, but not limited to, acts of government, wars, terrorism, riots, strikes or other labor disputes, shortages of labor or materials, fires, and floods, provided Corcentric provides to DTNA written notice of the existence of and the reason for such nonperformance or delay.

 

14

 

13.13                 Mutual Drafting.  This Agreement was mutually negotiated and reviewed by respective counsel and shall not be construed for or against either party.

 

13.14                 No Third Party Beneficiaries.  This Agreement is for the exclusive benefit of the parties hereto.  Nothing in this Agreement shall create or be deemed to create any third party beneficiary rights in any person or entity not a party to this Agreement.

 

14.                               SOURCE CODE ESCROW; LATERAL HIRING RESTRICITON.

 

14.1                        Source Code In Escrow.  At such time as the Portal is operational and in use, Corcentric shall deposit in escrow a copy of the source code to the Application in escrow at the parties’ shared expense at a secure remote site reasonably accessible to DTNA with an escrow agent reasonably acceptable to both parties, and having DTNA as a named beneficiary.  During the term of this Agreement, Concentric shall periodically make additional deposits into escrow of the Application including Maintenance Changes, Upgrades, and Enhancements licensed by DTNA.  In the event of Corcentric’s insolvency, bankruptcy, receivership, dissolution, or failure to continue as a going concern, which results in a failure by Corcentric to provide services to End Users without timely cure in accordance with the provisions of Section 11.2 (a “Release Event”), the source code shall be made available to DTNA for its internal use, modification and implementation without cost to DTNA, for limited period of time not to exceed one hundred eighty days (180 days) in order to allow DTNA to transition to a new system.  Except upon the occurrence of a Release Event, DTNA will have no rights to access or otherwise use the source code to the Application.  Notwithstanding the deposit of source code into escrow, or the potential delivery of the source code to DTNA by the escrow agent, DTNA shall not acquire any ownership or other right in the Application, the Corcentric Technology, or the source code beyond that provided for in this Agreement, and all such items delivered by the Escrow Agent to DTNA shall be deemed Corcentric’s Confidential Information subject to the confidentiality provisions of Section 12 of this Agreement.  It is the intent of this provision that there be no potential disruption of the Application to End Users.  This provision shall survive termination of this Agreement or insolvency of Corcentric, to the extent necessary to protect DTNA.

 

14.2                        Lateral Hiring Restriction.  Neither party will hire or solicit, directly or indirectly, any employee or contractor of the other party during the term of this Agreement or for a period of twelve (12) months after termination of this Agreement, for any reason, without the consent of the other party.

 

15

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.

 

	
Daimler Trucks North America   LLC
    	
 
    	
Corcentric Collective Business   Systems, Inc.:
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Kelly S. Como 
    	
 
    	
By: 
    	
/s/ David P. Lindeen
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
IPS Procurement Mgr
    	
 
    	
Title: 
    	
Vice President
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Kelly S. Como
    	
 
    	
Name: 
    	
David P. Lindeen
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
2-27-12
    	
 
    	
Date: 
    	
February 29, 2012
    
	
 
    	
 
    	
 
    
	
Daimler Trucks North America LLC
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Roger M. Nielsen
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
Chief Operating Officer
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Name: 
    	
Roger M. Nielsen
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
Date: 
    	
February 27, 2012
    	
 
    	
 
    

 

16

 

EXHIBIT A

 

DTNA CONTENT

 

Further content to be determined (see www.Daimler-TrucksNorthAmerica.com for logos, etc.)

 

17

 

EXHIBIT B

 

CORCENTRIC TECHNOLOGY

 

The current Application shall utilize the following functional and technical features, to support DTNA’s needs, as addressed in the following three Exhibits (B-1, B-2, and B-3): (These foundation Exhibits will be modified throughout the planning meetings by Corcentric and DNTA to reflect the final functional and technical features).  Exhibit B is a high level look of the Business Requirements.  The Business Requirements Document will provide the final details on this project.

 

EXHIBIT B-1

 

License to use proprietary, patent pending technology for commerce transaction services owned and developed by Corcentric.

 

[****]

 

18

 

[****]

 

19

 

EXHIBIT B-2

 

·                  ANSI X 12 Translator (Gentran and/or BizTalk)

 

·                  ANSI X 12 4010 Maps for EDI invoices

 

·                  Server Form functionality for Web based generation of invoices

 

·                  SQL Server Database

 

·                  NT or successor operating System administration

 

20

 

EXHIBIT B-3

 

[****]

 

21

 

EXHIBIT C

 

CONFIDENTIAL FEE SCHEDULE

 

The pricing below reflects the amount payable by DTNA to Corcentric on the gross invoice amount when Corcentric makes payments to Dealers /Distributors every [*****] weeks in arrears:

 

	
Year
    	
 
    	
Pricing
    
	
One
    	
 
    	
[****]
    
	
Two
    	
 
    	
[****]
    
	
Three
    	
 
    	
[****]
    
	
Four
    	
 
    	
[****]
    
	
Five
    	
 
    	
[****]
    

 

Optional Payment Terms for Dealers/Distributors if DTNA elects to change payment terms: It is agreed that the additional rate of interest used in accelerating payments to Dealers/Distributors as detailed below in this agreement is [****]. In the event this rate should increase prior to the implementation date or as of the end of any quarter subsequent to the implementation date, DTNA agrees that for each [*****].

 

	
Payment Term
    	
 
    	
Weeks in Arrear
    	
 
    	
Electronic
    	
 
    	
Manual
    
	
Weekly
    	
 
    	
[****]
    	
 
    	
[****]
    	
 
    	
[****]
    
	
Weekly
    	
 
    	
[****]
    	
 
    	
[****]
    	
 
    	
[****]
    
	
Weekly
    	
 
    	
[****]
    	
 
    	
[****]
    	
 
    	
[****]
    
	
Weekly
    	
 
    	
[****]
    	
 
    	
[****]
    	
 
    	
[****]
    

 

For contract years 3, 4 & 5, add [****] to get the applicable fee above

 

DTNA PDC transactions will be treated the same as a dealer’s transaction.

 

P-Card processing-a charge of [****] for electronically submitted invoices will apply and a charge of [****] for manually processed invoices-all fees coining from the credit card company will be passed through to the originating dealer

 

Fleets requiring originating dealer invoice as backup, we will provide scanning and indexing of these invoices to our electronic produced fleet invoice at [****] per dealer invoice

 

[****] per hour which will be utilized for services as outlined in Paragraph 4.3, Paragraph 4.5 and Paragraph 7.2 as applicable.

 

Credit and Transactional Services Included in Fees above

 

Corcentric will underwrite and own program receivables and credit risk.

Corcentric will own 100% of the receivable and credit risk of the program.  For all new fleet accounts and for the initial transition:

 

·                  Corcentric will run a non-intrusive credit check on all fleet accounts

 

22

 

·                  A credit limit will be established by Corcentric based on the results of the credit check

 

If additional information is needed in order to establish credit, we will work with DTNA to obtain the necessary information from the fleet

 

Corcentric will perform collections for all program receivables

 

·                  Corcentric will be 100% responsible for all collections/receivables of all programs.

·                  Corcentric will also be responsible for taking on the collections/receivables of DTNA customers where the credit risk resides with DTNA due to contractual obligations.

·                  Corcentric will perform our services as if we were responsible for the bad debt exposure.

 

Corcentric will Notify DTNA of any customers at risk of account suspension or termination

 

·                  If Corcentric determines there is a credit issue with a fleet, DTNA will be contacted

·                  Corcentric will collaborate with DTNA to determine a solution and direction moving forward (suspend account, terminate account, DTNA insure receivable)

·                  The status of the fleet will be updated in the credit status database

·                  Notification of account suspension/termination can be configured to report immediately or on a daily/weekly report to assigned users.

 

Corcentric will accept multiple payment options from customers (EFT, check, ACH)

 

·                  Payment can be sent by customers utilizing their preferred payment method (ACH, EFT, or check)

·                  Corcentric will accept multiple methods for payment information from customers (EDI, e-mail, etc.)

 

23

 

EXHIBIT D

 

SERVICE LEVEL AGREEMENT

 

	
Service
   Level
    	
 
    	
Number of
   Hours
    	
 
    	
Days
    	
 
    	
Description of Service*
    	
 
    	
Number of Hours Downtime
   Allowed per Month
    
	
[****]
    	
 
    	
[****]
    	
 
    	
[****]
    	
 
    	
M-F Peak
    	
 
    	
[****]
    
	
[****]
    	
 
    	
[****]
    	
 
    	
[****]
    	
 
    	
Week-end Peak
    	
 
    	
[****]
    
	
[****]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Mon-Sun non-Peak, non-Maint
    	
 
    	
 
    
	
 
    	
 
    	
[****]
    	
 
    	
 
    	
 
    	
Maintenance Hours per Week
    	
 
    	
 
    

 

Other Service Level Agreement Provisions:

 

1.              In the event of a major disaster at the co-location site, full system recovery shall be provided within 48 hours.

2.              In the event of a hardware failure, full system recovery shall be provided within [****].

3.              Corcentric’s End-to-End transaction completion time shall not exceed [****] for transactions that are received defect free.

4.              Tier-I help desk, 24x7, with [****] response time for co-location.  Tier-1 help desk, 8:00 A.M. to 8:00 P.M. (EST) within Corcentric.

5.              Tier-2 applications support, 8:00 A.M. TO 5:00 P.M. (EST), response within [****], within Corcentric.

 

	
* Weekday Peak:
    	
 
    	
8:00am to 7:59pm Washington, D.C. time
    
	
   Weekend   Peak:
    	
 
    	
9:00am to 4:59pm Washington, D.C. time
    

 

All maintenance, upgrades and repairs only will be performed during non-peak hours.

 

24Exhibit 10.13

 

[M&T Bank Logo]

 

CREDIT AGREEMENT 
 New York

 

February 10, 2014

 

Borrower: AMERIQUEST REMARKETING SERVICES, INC., a Florida corporation with its chief executive office at 12530 West Atlantic Boulevard, Coral Springs, FL 33071.  Attention:  Mark Joyce, Executive Vice President & Chief Financial Officer.

 

Bank:              M&T BANK, a New York banking corporation with its chief executive office at One M&T Plaza, Buffalo, NY 14203.  Attention:  Office of General Counsel.

 

The Bank and the Borrower agree as follows:

 

1.              DEFINITIONS.

 

a.              “Business Day” means any day of the year, other than Saturday or Sunday, on which banks open for business in the State of New York are not required or authorized to close.

 

b.              “Credit” means any and all credit facilities and any other financial accommodations made by the Bank in favor of the Borrower whether now or hereafter in existence.

 

c.               “Collateral” means the following property of Borrower: All of Borrower’s right, title and interest in and to (a) the Portfolio issued under the Trust established by that certain Trust Agreement, and all rights under the Trust Agreement to and with respect to the Portfolio, (b) Borrower’s beneficial ownership in (i) the Equipment, (ii) the Leases, (iii) all rights as Servicer under the Servicing Agreement (as defined in the Trust) with respect to the Portfolio and (iv) all other tangible or intangible property, assets or rights of any kind whatsoever, in each case held in trust in the Portfolio by the Trustee as provided in the Trust Agreement whether or not any such items are subject to the Uniform Commercial Code, as the same may be in effect in the State of New York, as amended from time to time (the “UCC”), and whether or not affixed to any realty, including (1) all additions to, accessions to, substitutions for, replacements of and supporting obligations of the foregoing; (2) all rents, principal and interest, late fees, indemnities, casualty payments and other payments or sums payable under the Leases and all rights to the collect same; (3) all awards in bankruptcy, reorganization or any action for relief of debtors and payments under any Equipment warranty or otherwise from any “Supplier” as defined in the UCC; (4) the Lease Collateral; (5) all rights to compel performance under the Leases and under or with respect to Lease Collateral and to repossess or foreclose on any Equipment or other Lease Collateral; (6) all proceeds and products of the foregoing, including insurance proceeds; and (7) all business records and information relating to any of the foregoing and any software, improvements to software or other programs for accessing and manipulating such information.

 

d.              “Equipment” means all motor vehicles and other items of equipment subject to the Leases.

 

e.               “Expenses” has the meaning as defined in Section 6 Expenses.

 

f.                “G.A.A.P.” means, with respect to any date of determination, generally accepted accounting principles as used by the Financial Accounting Standards Board and/or the American Institute of Certified Public Accountants consistently applied and maintained throughout the periods indicated.

 

g.               “Leases” means all equipment leases, secured loans or other chattel paper, instruments, payment intangibles or contracts of any kind and howsoever designated between the Trustee, as Trustee for the Portfolio and lessor, and the lessee named therein.

 

h.              “Lease Collateral” means all guaranties and other collateral for any Obligor’s obligations under the Leases.

 

i.                  “Maximum Credit Facility Amount” means seven million five hundred thousand and 00/100 ($7,500,000.00).

 

j.                 “Monthly Payment” means a payment of interest due monthly under any Note.

 

k.              “Notes” means, individually and collectively, all notes executed by Borrower in favor of Bank contemplated by this Credit Agreement.

 

l.                  “Obligations” means any and all indebtedness or other obligations of the Borrower to the Bank in any capacity, now existing or hereafter incurred, however created or evidenced, regardless of kind, class or form, whether direct, indirect, absolute or contingent (including obligations pursuant to any guaranty, endorsement, other assurance of payment or otherwise), whether joint or several, whether from time to time reduced and thereafter increased, or entirely extinguished and thereafter reincurred, together with all extensions, renewals and replacements thereof, and all interest, fees, charges, costs or Expenses which accrue on or in connection with the foregoing, including, but not limited to obligations evidenced by all Notes issued thereunder and any other indebtedness or obligations (i) not yet outstanding but contracted for, or with regard to

 

 

which any other commitment by the Bank exists; (ii) arising prior to, during or after any pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding; (iii) owed by the Borrower to others and which the Bank obtained, or may obtain, by assignment or otherwise; and (iv) payable under this Agreement.

 

m.          “Obligor” means any account debtor, obligor, lessee or other party obligated with respect to any Lease, chattel paper, general intangible, instrument, investment property, document or deposit account included in the Lease Collateral

 

n.              “Portfolio” means Portfolio No. 098506-010 represented by the Portfolio Interest Certificate, issued under the Trust.

 

o.              “Prime Rate” means the rate per annum from time to time established by the Bank as the Prime Rate and made available by the Bank at its main office or, in the discretion of the Bank, the base, reference, or other rate then designated by the Bank for general commercial loan reference purposes, it being understood that such rate is a reference rate, not necessarily the lowest, established from time to time, which serves as the basis upon which effective interest rates are calculated for loans making reference thereto.

 

p.              “Required Documentation” means the following documents: (i) form of master lease and all amendments; (ii) three years of company prepared financial statements of the proposed lessee, provided that in the event audited financial statements are available for any fiscal period for any reason whatsoever Bank shall be provided such audited financial statements; (iii) equipment schedule with specifications; (iv) prospective lessee organizational and authorization documents, including but not limited to incumbency certificates, secretary certificates, board resolutions, consent actions; and (v) such further documentation as the Bank may reasonably request, all of the foregoing to be in form and substance acceptable to Bank in Bank’s sole discretion.

 

q.              “Subsidiary” means any corporation or other business entity of which at least fifty percent (50%) of the voting stock or other ownership interest is owned by the Borrower directly or indirectly through one or more Subsidiaries.  If the Borrower has no Subsidiaries, the provisions of this Agreement relating to the Subsidiaries shall be disregarded, without affecting the applicability of such provisions to the Borrower alone.

 

r.                 “Transaction Documents” means this Agreement and all documents, instruments or other agreements by the Borrower in favor of the Bank in connection (directly or indirectly) with the Obligations, whether now or hereafter in existence, including promissory notes, security agreements, guaranties and letter of credit reimbursement agreements.

 

s.                “Trust” or “Trust Agreement” means the certain Trust Agreement dated as of April 18, 2011 between Wilmington Trust Company, as Owner Trustee and Custodian (the “Trustee” or “Custodian”) and Borrower, as (the “Beneficial Owner”); also known as the ATS Master Trust.

 

2.              BASIC TERMS.

 

a.              Advances.  Subject to the continued compliance of Borrower with this Agreement and all other accompanying Transaction Documents and the continued absence of any default by Borrower or any indorser, guarantor, or any other party liable for, or whose assets or any interest therein secures payment of any Obligations, Borrower will provide Bank with the Required Documentation and then Bank may, at its sole and absolute discretion and with no obligation or requirement to, make certain advances evidenced by certain term loans from Bank to Borrower, for use by the Borrower to temporary fund leases within the Trust, in such sums as Borrower may request, but which shall not exceed in the aggregate the Maximum Credit Facility Amount.  Even if the aggregate amount at anyone time advanced and for any reason exceeds the Maximum Credit Facility Amount, Borrower shall nevertheless be liable for the entire amount outstanding and interest thereon in accordance with this Agreement and all accompanying Transaction Documents, and Borrower shall be responsible for observance of, performance of, and compliance with all of the terms, covenants and Transaction Documents, in form and substance acceptable to Bank.  Nothing in this Agreement shall be construed as obligating Bank to make any particular loan or advance to Borrower, and Borrower is not relying upon Bank to make or continue to make any advance or loan for any purpose whatsoever.  All such loans or advances shall remain within the sole discretion of Bank.

 

b.              Procedures.  With respect to each advance and all matters and transactions in connection therewith, Borrower hereby irrevocably authorizes Bank to accept, rely upon, act upon and comply with any oral or written instructions, requests, confirmation, and orders of any employee or representative of Borrower who is so authorized or designated as a signer of Transaction Documents under the provisions of Borrower’s most recent resolutions or similar documents on file with Bank.  Borrower acknowledges that the transmission between Borrower and Bank of any such instructions, requests, confirmations and orders involves the possibility of errors, omissions, mistakes and discrepancies and agrees to adopt such internal measures and operational procedures as may be necessary to protect its interests.  By reason thereof, Borrower hereby assumes all risk of loss and responsibility for, and releases and discharges Bank from any and all responsibility and liability for, and agrees to indemnify, reimburse on demand and hold Bank harmless from, any and all claims, actions, damages, losses, liability and expenses by reason of, arising out of, or in any way connected with or related to: (i) Bank’s accepting, relying and acting upon, complying with or observing any such instruction, request, confirmation or order; or (ii) any such error, omission, mistake, or discrepancy, provided such error, omission, mistake, or discrepancy is not caused by the Bank’s gross negligence or willful misconduct.

 

3.              REPRESENTATIONS AND WARRANTIES.  The Borrower makes the following representations and warranties and any “Additional Representations and Warranties” on the schedule attached hereto and made part hereof (the “Schedule”), all of which shall be deemed to be continuing representations and warranties as long as this Agreement is in effect:

 

2

 

a.              Good Standing; Authority.  The Borrower and each Subsidiary (if either is not an individual) is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it was formed.  The Borrower and each Subsidiary is duly authorized to do business in each jurisdiction in which failure to be so qualified would have a material adverse effect on its business or assets and has the power and authority to own each of its assets and to use them in the ordinary course of business now and in the future.

 

b.              Compliance.  The Borrower and each Subsidiary conducts its business and operations and the ownership of its assets in material compliance with each applicable statute, regulation and other law, including environmental laws.  All material approvals, including authorizations, permits, consents, franchises, licenses, registrations, filings, declarations, reports and notices (the “Approvals”) necessary for the conduct of the Borrower’s and each Subsidiary’s business and for the Credit have been duly obtained and are in full force and effect.  The Borrower and each Subsidiary is in material compliance with the Approvals.  The Borrower and each Subsidiary (if either is not an individual) is in compliance with its certificate of incorporation, by-laws, partnership agreement, articles of organization, operating agreement or other applicable organizational or governing document as may be applicable to the Borrower or a Subsidiary depending on its organizational structure (“Governing Documents”).  The Borrower and each Subsidiary is in material compliance with each agreement to which it is a party or by which it or any of its assets is bound.

 

c.               Legality.  The execution, delivery and performance by the Borrower of this Agreement and the Transaction Documents, (i) are in furtherance of the Borrower’s purposes and within its power and authority; (ii) do not (A) violate any statute, regulation or other law or any judgment, order or award of any court, agency or other governmental authority or of any arbitrator with respect to the Borrower or any Subsidiary or (B) violate the Borrower’s or any Subsidiary’s Governing Documents (if either is not an individual), constitute a default under any material agreement binding on the Borrower or any Subsidiary or result in a lien or encumbrance on any assets of the Borrower or any Subsidiary (except in favor of Bank); and (iii) if the Borrower or any Subsidiary is not an individual, have been duly authorized by all necessary organizational actions.

 

d.              Fiscal Year.  The fiscal year of the Borrower is the calendar year unless the following blank states otherwise: year ending         , 20    .

 

e.               Judgments and Litigation.  There is no pending, or to the knowledge of Borrower, any threatened claim, audit, investigation, action or other legal proceeding or judgment, order or award of any court, agency or other governmental authority or arbitrator (any, an “Action”) which involves the Borrower, its Subsidiaries or their respective assets which would have a material adverse effect upon the Borrower or any Subsidiary or threaten the validity of the Credit, any Transaction Document or any related document or action, except for tax audits of federal and state agencies .  Borrower will immediately notify Bank upon acquiring knowledge of the foregoing.

 

f.                Full Disclosure.  Neither this Agreement nor any certificate, financial statement or other writing provided to the Bank by or on behalf of the Borrower or any Subsidiary contains any statement of fact that is incorrect or misleading in any material respect or omits to state any fact necessary to make any such statement not incorrect or misleading.  The Borrower has not failed to disclose to the Bank any fact that would have a material adverse effect on the Borrower or any Subsidiary.

 

4.              AFFIRMATIVE COVENANTS.  So long as this Agreement is in effect, the Borrower will comply with any “Additional Affirmative Covenant” contained in the Schedule and shall:

 

a.              Financial Statements and Other Information.  Promptly deliver to the Bank (i) within forty-five (45) days after the end of each fiscal quarter, an unaudited consolidating financial statement of the Borrower as of the end of such quarter, which financial statement shall consist of income and cash flows for the quarter, with a consolidating balance sheet as of the quarter end all in such detail as the Bank may request.  The Borrower shall also promptly provide the Bank such information as the Bank may from time to time may reasonably request regarding the financial and business affairs of the Borrower or any Subsidiary.  Borrower will also cause Ameriquest Business Services, Inc., as the “Guarantor” under a certain Continuing Guaranty (the “Guaranty”), to deliver such information as is requested by Bank under the Guaranty.

 

b.              Accounting; Tax Returns and Payment of Claims.  The Borrower and each Subsidiary will maintain a system of accounting and reserves in accordance with G.A.A.P., has filed and will file each tax return required of it and, except as disclosed in the Schedule or as contested in good faith, has paid and will pay when due each tax, assessment, fee, charge, fine and penalty imposed by any taxing authority upon it or any of its assets, income or franchises, as well as all amounts owed to mechanics, materialmen, landlords, suppliers and the like in the normal course of business.

 

c.               Inspections.  Promptly upon the Bank’s request, the Borrower will permit, and cause its Subsidiaries to permit, the Bank’s officers, attorneys or other agents to inspect its and its Subsidiary’s premises, examine and copy its records and discuss its and its Subsidiary’s business, operations and financial or other condition with its and its Subsidiary’s responsible officers and independent accountants; provided that, Bank shall not be permitted to conduct such inspections and examinations more than two (2) times per calendar year.

 

d.              Changes in Management and Control.  If the Borrower is not an individual, immediately upon any change in the identity of the Borrower’s chief executive officers or in its beneficial ownership, the Borrower will provide to the Bank a certificate executed by its senior individual authorized to transact business on behalf of the Borrower, specifying such change.

 

3

 

e.               Notice of Defaults and Material Adverse Changes.  Immediately upon acquiring reason to know of (i) any Event of Default, (ii) any event or condition that might have a material adverse effect upon the Borrower or any Subsidiary or (iii) any Action, the Borrower will provide to the Bank a certificate executed by the Borrower’s senior individual authorized to transact business on behalf of the Borrower, specifying the date(s) and nature of the event or the Action and what action the Borrower or its Subsidiary has taken or proposes to take with respect to it.

 

f.                Insurance.  Maintain its, and cause its Subsidiaries to maintain, property in good repair and will on request provide the Bank with evidence of insurance coverage satisfactory to the Bank, including fire and hazard, liability, workers’ compensation and business interruption insurance and flood hazard insurance as required.

 

g.               Further Assurances.  Promptly upon the request of the Bank, the Borrower will execute, and cause its Subsidiaries to execute, and deliver each in writing and take each other action that the Bank deems necessary or desirable in connection with any transaction contemplated by this Agreement.

 

5.              DEFAULT; MANDATORY PREPAYMENT; RIGHTS AND REMEDIES UPON DEFAULT.

 

a.              Events of Default.  Any of the following events or conditions shall constitute an “Event of Default”: (i) failure by the Borrower to pay (whether at the stated maturity, by acceleration, upon demand or otherwise) the Obligations, or any part thereof; provided that Borrower may cure any failure to make a Monthly Payment within two (2) Business Days after receipt of notice of nonpayment from Bank (ii) default by the Borrower in the performance of any obligation, term or condition of this Agreement, the other Transaction Documents or any other agreement with the Bank or any of its affiliates or subsidiaries (collectively, “Affiliates”) and such default is not cured within thirty (30) days after receipt of notice of default from Bank or Affiliates, as the case may be; (iii) failure by the Borrower to pay when due after giving effect to any applicable grace or cure period (whether at the stated maturity, by acceleration, upon demand or otherwise) any indebtedness or obligation owing to any third party, the occurrence of any event which could result in acceleration of payment of any such indebtedness or obligation or the failure to perform any agreement with any third party, and in each case (a) relating to indebtedness or obligations of Borrower totaling an aggregate amount greater than $500,000.00, and (b) such failure has not been waived by such third party; (iv) the Borrower is dissolved, becomes insolvent, generally fails to pay or admits in writing its inability generally to pay its debts as they become due; (v) the Borrower makes a general assignment, arrangement or composition agreement with or for the benefit of its creditors or makes, or sends notice of any intended, bulk sale; the sale, assignment, transfer or delivery of all or substantially all of the assets of the Borrower to a third party; or the cessation by the Borrower as a going business concern; (vi) the Borrower files a petition in bankruptcy or institutes any action under federal or state law for the relief of debtors or seeks or consents to the appointment of an administrator, receiver, custodian or similar official for the wind up of its business (or has such a petition or action filed against it and such petition action or appointment is not dismissed or stayed within forty-five (45) days); (vii) the reorganization, merger, consolidation or dissolution of the Borrower, including the transfer or disposition of substantially all of its assets, acquiring substantially all of the assets of any other entity, doing business under or otherwise using any name other than its true name or making any material change in its business, structure, purposes or operations that , in the Bank’s opinion, would have a material adverse effect on the Borrower’s ability to perform the Obligations (or the making of any agreement therefor); (viii) the death or judicial declaration of incompetency of the Borrower, if an individual; (ix) the entry of any judgment or order of any court, other governmental authority or arbitrator against the Borrower in excess of $500,000.00, unless a stay of enforcement of such judgment or order in effect, by reason of a pending appeal; (x) falsity, omission or inaccuracy of facts submitted to the Bank or any Affiliate (whether in a financial statement or otherwise) in any material respect; (xi) an adverse change in the Borrower, its business, assets, operations, affairs or condition (financial or otherwise) from the status shown on any financial statement or other document submitted to the Bank or any Affiliate, and which change the Bank determines will have a material adverse effect on (a) the Borrower, its business, assets, operations or condition (financial or otherwise), or (b) the ability of the Borrower to pay or perform the Obligations; (xii) any pension plan of the Borrower fails to comply with applicable law or has vested unfunded liabilities that, in the opinion of the Bank, might have a material adverse effect on the Borrower’s ability to repay its debts; (xiii) any evidence received by the Bank that the Borrower has directly or indirectly been engaged in any type of activity which, in the Bank’s reasonable discretion, might result in the loss or forfeiture of any Collateral of the Borrower to any governmental authority; (xiv) the occurrence of any event described in Section 5(a)(i) through and including 5(a)(xiii) with respect to any Subsidiary or to any endorser, guarantor or any other party liable for, or whose assets or any interest therein secures, payment of any of the Obligations; (xv) default by the Guarantor in the performance of any obligation, term or condition of the Guaranty or (xv) the Bank in good faith deems itself insecure with respect to payment or performance of the Obligations.

 

b.              Mandatory Prepayment.  Borrower acknowledges and agrees that its duties under the Servicing Agreement include (i) the giving of notices of default and the enforcement of the rights of Lessor under the Leases, and (ii) the protection of the Portfolio’s ownership of the Equipment.  If any Obligor shall fail to pay any rent or other amount as or when due under any Lease, or if any Obligor shall otherwise breach the terms of or default under any Lease, then, after the expiration of any grace period or the giving of any notice of default provided in such Lease, all Notes secured by all Leases with such Obligor shall be accelerated and all principal, accrued interest and other amounts due thereunder shall be due and payable within ten (10) Business Days following written demand by Bank.  If any Equipment vendor or other party charged with obtaining the certificate of title for an item of Equipment shall fail to proceed diligently to obtain such certificate of title, or if any certificate of title is issued without designating as sole owner the Trustee under the Trust Agreement, as trustee for the Portfolio, then an allocated portion of the principal under the Note secured by such item of Equipment determined reasonably by the Bank shall be accelerated and all principal, accrued interest and other amounts due thereunder shall be due and payable within ten (10) Business Days following written demand by Bank.

 

c.               Rights and Remedies Upon Default.  Upon the occurrence of any Event of Default, the Bank without demand of performance or other demand, presentment, protest, advertisement or notice of any kind (except any notice required by law) to or upon the Borrower, any Subsidiary or any other person (all and each of which demands, presentments, protests, advertisements and notices are hereby waived), may exercise all rights and remedies under the Borrower’s or its Subsidiaries’ agreements with the Bank or its Affiliates, applicable law, in equity or otherwise and may declare

 

4

 

all or any part of any Obligations not payable on demand to be immediately due and payable without demand or notice of any kind and terminate any obligation it may have to grant any additional loan, credit or other financial accommodation to the Borrower or any Subsidiary.  All or any part of any amounts due hereunder whether or not payable on demand, shall be immediately due and payable automatically upon the occurrence of an Event of Default in sub-paragraphs Section 5(a) clauses (v) - (vii) or (ix) — (xiii) above, or at the Bank’s option, upon the occurrence of any other Event of Default.  The provisions hereof are not intended in any way to affect any rights of the Bank with respect to any Obligations which may now or hereafter be payable on demand.

 

6.              EXPENSES.  The Borrower shall pay to the Bank on demand (i) a loan funding fee in the amount of one thousand dollars ($1,000) in immediately available funds on the date of each advance under this Credit Agreement (Borrower agrees that such demand is presumed to be made at the time of the advance); and (ii) all costs and expenses (including all reasonable fees and disbursements of counsel retained for advice, suit, appeal or other proceedings or purpose and of any experts or agents it may retain), which the Bank may incur in connection with (a) the administration of the Obligations, including any administrative fees the Bank may impose for the preparation of discharges, releases or assignments to third-parties; (b) the enforcement and collection of any Obligations or any guaranty thereof; (c) the exercise, performance, enforcement or protection of any of the rights of the Bank hereunder; or (d) the failure of the Borrower or any Subsidiary to perform or observe any provisions hereof.  After such demand for payment of any cost, expense or fee under this Section or elsewhere under this Agreement, the Borrower shall pay interest at the highest default rate specified in any instrument evidencing any of the Obligations from the date payment is demanded by the Bank to the date reimbursed by the Borrower.  All such costs, expenses or fees under this Agreement (collectively the “Expenses”) shall be added to the Obligations.

 

7.              TERMINATION.  This Agreement shall remain in full force and effect until all Obligations outstanding, or contracted or committed for (whether or not outstanding), shall be finally and irrevocably paid in full.  Provided that all Obligations outstanding, or contracted or committed for (whether or not outstanding) have been finally and irrevocably paid in full, this Agreement shall terminate five (5) years from the date of its execution.

 

8.              RIGHT OF SETOFF.  If an Event of Default occurs and during its continuance, the Bank shall have the right to set off against the amounts owing under this Agreement and the other Transaction Documents any property of Borrower held in a deposit or other account or otherwise with the Bank or its Affiliates or otherwise owing by the Bank or its Affiliates in any capacity to the Borrower, its Subsidiary or any guarantor of, or endorser of any of the Transaction Documents evidencing, the Obligations.  Such setoff shall be deemed to have been exercised immediately at the time the Bank or such Affiliate elect to do so.

 

9.              MISCELLANEOUS.

 

a.              Notices.  Any demand or notice hereunder or under any applicable law pertaining hereto shall be in writing and duly given if delivered to Borrower (at its address on the Bank’s records) or to the Bank (at the address on page one and separately to the Bank officer responsible for Borrower’s relationship with the Bank).  Such notice or demand shall be deemed sufficiently given for all purposes when delivered (i) by personal delivery and shall be deemed effective when delivered, or (ii) by mail or courier and shall be deemed effective three (3) Business Days after deposit in an official depository maintained by the United States Post Office for the collection of mail or one (1) Business Day after delivery to a nationally recognized overnight courier service (e.g., Federal Express).  Notice by e-mail is not valid notice under this or any other agreement between Borrower and the Bank.

 

b.              Generally Accepted Accounting Principles.  Any financial calculation to be made, all financial statements and other financial information to be provided, and all books and records, system of accounting and reserves to be kept in connection with the provisions of this Agreement, shall be in accordance with G.A.A.P. consistently applied during each interval and from interval to interval; provided, however, that in the event changes in G.A.A.P. shall be mandated by the Financial Accounting Standards Board or any similar accounting body of comparable standing, or should be recommended by Borrower’s certified public accountants, to the extent such changes would affect any financial calculations to be made in connection herewith, such changes shall be implemented in making such calculations only from and after such date as Borrower and the Bank shall have amended this Agreement to the extent necessary to reflect such changes in the financial and other covenants to which such calculations relate.

 

c.               Indemnification.  If after receipt of any payment of all, or any part of, the Obligations, the Bank is, for any reason, compelled to surrender such payment to any person or entity because such payment is determined to be void or voidable as a preference, an impermissible setoff, or a diversion of trust funds, or for any other reason, the Transaction Documents shall continue in full force and the Borrower shall be liable, and shall indemnify and hold the Bank harmless for, the amount of such payment surrendered.  The provisions of this Section shall be and remain effective notwithstanding any contrary action which may have been taken by the Bank in reliance upon such payment, and any such contrary action so taken shall be without prejudice to the Bank’s rights under the Transaction Documents and shall be deemed to have been conditioned upon such payment having become final and irrevocable.  The provisions of this Section shall survive the termination of this Agreement and the Transaction Documents.

 

d.              Further Assurances.  From time to time, the Borrower shall take, and cause its Subsidiaries to take, such action and execute and deliver to the Bank such additional documents, instruments, certificates, and agreements as the Bank may reasonably request to effectuate the purposes of the Transaction Documents.

 

e.               Cumulative Nature and Non-Exclusive Exercise of Rights and Remedies.  All rights and remedies of the Bank pursuant to this Agreement and the Transaction Documents shall be cumulative, and no such right or remedy shall be exclusive of any other such right or

 

5

 

remedy.  In the event of any unreconcilable inconsistencies, this Agreement shall control.  No single or partial exercise by the Bank of any right or remedy pursuant to this Agreement or otherwise shall preclude any other or further exercise thereof, or any exercise of any other such right or remedy, by the Bank.

 

f.                Governing Law; Jurisdiction.  This Agreement has been delivered to and accepted by the Bank and will be deemed to be made in the State of New York.  Except as otherwise provided under federal law, this Agreement will be interpreted in accordance with the laws of the State of New York excluding its conflict of laws rules.  BORROWER HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN THE STATE OF NEW YORK IN A COUNTY OR JUDICIAL DISTRICT WHERE THE BANK MAINTAINS A BRANCH AND CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE MANNER AND AT BORROWER’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS AGREEMENT WILL PREVENT THE BANK FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and Borrower.  Borrower waives any objection to venue and any objection based on a more convenient forum in any action instituted under this Agreement.

 

g.               Joint and Several; Successors and Assigns.  If there is more than one Borrower, each of them shall be jointly and severally liable for all amounts, which become due, and the performance of all obligations under this Agreement, and the term “the Borrower” shall include each as well as all of them.  This Agreement shall be binding upon the Borrower and upon its heirs and legal representatives, its successors and assignees, and shall inure to the benefit of, and be enforceable by, the Bank, its successors and assignees and each direct or indirect assignee or other transferee of any of the Obligations; provided, however, that this Agreement may not be assigned by the Borrower without the prior written consent of the Bank.

 

h.              Waivers; Changes in Writing.  No failure or delay of the Bank in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power.  The Borrower expressly disclaims any reliance on any course of dealing or usage of trade or oral representation of the Bank (including representations to make loans to the Borrower) and agrees that none of the foregoing shall operate as a waiver of any right or remedy of the Bank.  No notice to or demand on the Borrower in any case shall entitle the Borrower to any other or further notice or demand in similar or other circumstances.  No waiver of any provision of this Agreement or consent to any departure by the Borrower therefrom shall in any event be effective unless made specifically in writing by the Bank and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.  No modification to any provision of this Agreement shall be effective unless made in writing in an agreement signed by the Borrower and the Bank.

 

i.                  Interpretation.  Unless the context otherwise clearly requires, references to plural includes the singular and references to the singular include the plural; references to “individual” shall mean a natural person and shall include a natural person doing business under an assumed name (e.g., a “DBA”); the word “or” has the inclusive meaning represented by the phrase “and/or”; the word “including”, “includes” and “include” shall be deemed to be followed by the words “without limitation”; and captions or section headings are solely for convenience and not part of the substance of this Agreement.  Any representation, warranty, covenant or agreement herein shall survive execution and delivery of this Agreement and shall be deemed continuous.  Each provision of this Agreement shall be interpreted as consistent with existing law and shall be deemed amended to the extent necessary to comply with any conflicting law.  If any provision nevertheless is held invalid, the other provisions shall remain in effect.  The Borrower agrees that in any legal proceeding, a photocopy of this Agreement kept in the Bank’s course of business may be admitted into evidence as an original.

 

j.                 Waiver of Jury Trial.  THE BORROWER AND THE BANK HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY THE BORROWER AND THE BANK MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTIONS RELATED HERETO.  THE BORROWER REPRESENTS AND WARRANTS THAT NO REPRESENTATIVE OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY TRIAL WAIVER.  THE BORROWER ACKNOWLEDGES THAT THE BANK HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS SECTION.

 

6

 

Acknowledgment.  Borrower acknowledges that it has read and understands all the provisions of this Agreement, including the Governing Law, Jurisdiction and Waiver of Jury Trial, and has been advised by counsel as necessary or appropriate.

 

	
 
    	
 
    	
M&T BANK,
    
	
 
    	
 
    	
a New York banking   corporation.
    
	
 
    	
 
    	
 
    
	
/s/ Patricia L. Meyer
    	
 
    	
By
    	
/s/ Derek Lynch
    
	
Signature of Witness
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
Derek Lynch
    
	
Patricia L. Meyer
    	
 
    	
 
    	
 
    
	
Typed Name of Witness
    	
 
    	
Title:
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
AMERIQUEST REMARKETING   SERVICES, INC.,
    
	
 
    	
 
    	
a Florida corporation.
    
	
 
    	
 
    	
 
    
	
/s/ Pamela B. Schmitt
    	
 
    	
By
    	
/s/ Mark Joyce
    
	
Signature of Witness
    	
 
    	
 
    
	
 
    	
 
    	
Name: Mark Joyce
    
	
Pamela B. Schmitt
    	
 
    	
 
    
	
Typed Name of Witness
    	
 
    	
Title: Executive   Vice President & Chief Financial Officer
    
					

 

7

 

ACKNOWLEDGMENT

 

	
STATE OF Maryland
    	
)
    
	
 
    	
: SS.
    
	
COUNTY OF Baltimore
    	
)
    

 

On the 14 day of February, in the year 2014, before me, the undersigned, a Notary Public in and for said State, personally appeared Derek Lynch, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

 

	
 
    	
/s/ Patricia L. Meyer
    
	
 
    	
Notary Public
    

 

ACKNOWLEDGMENT

 

	
STATE OF Illinois
    	
)
    
	
 
    	
: SS.
    
	
COUNTY OF DuPage
    	
)
    

 

On the 4th day of February, in the year 2014, before me, the undersigned, a Notary Public in and for said State, personally appeared Mark Joyce, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

 

	
 
    	
/s/ Pamela B Schmitt
    
	
 
    	
Notary Public
    

 

8

 

BANK USE ONLY

 

	
Authorization   Confirmed:
    	
/s/ Derek Lynch
    
	
 
    	
Signature
    

 

9

 

FIRST AMENDMENT TO CREDIT AGREEMENT

 

This First Amendment to Credit Agreement (this “First Amendment”) is effective as of April 16, 2014 (the “First Amendment Effective Date”), between AMERIQUEST REMARKETING SERVICES, INC., a Florida corporation (“Borrower”), and  M&T BANK, a New York banking corporation (“Bank”).

 

W I T N E S S E T H:

 

WHEREAS, Borrower and Bank are parties to that certain Credit Agreement dated as of February 10, 2014 (as amended, the “Credit Agreement”) (unless otherwise defined herein, all terms used herein shall have the meaning given such terms in the Credit Agreement, as amended by this First Amendment);

 

WHEREAS, pursuant to the Credit Agreement, the Bank has made extensions of credit to Borrower;

 

WHEREAS, the parties desire to enter into this First Amendment to amend the definition of “Portfolio” to reference the correct Portfolio Interest Certificate to be effective as of the First Amendment Effective Date on the terms and conditions set forth herein; and

 

NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged and confessed, subject to the terms and conditions set forth herein, Borrower and the Bank hereto hereby agree as follows:

 

SECTION 1.                            Amendments.  In reliance on the representations, warranties, covenants and agreements contained in this First Amendment, the Credit Agreement is hereby amended effective as of the First Amendment Effective Date in the manner provided in this Section 1.

 

1.1                               Amended and Restated Definitions.  The definition of “Portfolio”, contained in Section 1.n. of the Credit Agreement is hereby amended and restated in its entirety to read in full as follows:

 

n.  “Portfolio” means Portfolio No. 098506-011 represented by the Portfolio Interest Certificate, issued under the Trust.

 

SECTION 2.                            Representations and Warranties of Borrower.  To induce the Bank to enter into this First Amendment, Borrower hereby represents and warrants to the Bank as follows:

 

2.1                               Reaffirm Existing Representations and Warranties.  Each representation and warranty of Borrower contained in the Credit Agreement and the other Transaction Documents is true and correct on the date hereof and will be true and correct after giving effect to amendments to the Credit Agreement set forth in Section 1 hereof.

 

2.2                               Due Authorization; No Conflict.  The execution, delivery and performance by Borrower of this First Amendment are within Borrower’s corporate powers, have been duly

 

 

authorized by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not violate or constitute a default under any provision of applicable law or any material agreement binding upon Borrower or result in the creation or imposition of any lien upon any of the assets of Borrower (except in favor of Bank).

 

2.3                               Validity and Enforceability.  This First Amendment constitutes the valid and binding obligation of Borrower enforceable in accordance with its terms, except as (a) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (b) the availability of equitable remedies may be limited by equitable principles of general application.

 

SECTION 3.                            Miscellaneous.

 

3.1                               No Other Modification; Construction.  Except as expressly amended hereby, the Credit Agreement and all other Transaction Documents are and shall be unmodified and remain in full force and effect, and nothing contained herein shall constitute or be deemed a waiver of any of the rights or obligations of the parties prior to the date hereof.  Each reference to the Credit Agreement in the Transaction Documents shall mean and be a reference to the Credit Agreement as amended hereby, and this First Amendment and the Credit Agreement shall be read together and construed as a single instrument.

 

3.2                               Counterparts.  This First Amendment may be executed in counterparts, and all parties need not execute the same counterpart; however, no party shall be bound by this First Amendment until Borrower and Bank have executed a counterpart and the Guarantor has executed the consent attached hereto.  Facsimiles or other electronic transmission (e.g. .pdf) shall be effective as originals.

 

3.3                               Complete Agreement.  THIS FIRST AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.

 

3.4                               Headings.  The headings, captions and arrangements used in this First Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this First Amendment, nor affect the meaning thereof.

 

3.5                               Effectiveness.  This First Amendment shall be effective automatically and without necessity of any further action by Borrower or the Bank when counterparts hereof have been executed by Borrower and Bank.

 

3.6                               Governing Law.  This First Amendment shall be governed by, and construed in accordance with, the laws of the State of New York.

 

[Signature pages to follow]

 

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be duly executed by their respective Responsible Officers on the date and year first above written.

 

 

	
BORROWER:
    	
AMERIQUEST   REMARKETING SERVICES, INC., a Florida corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Joyce
    
	
 
    	
 
    	
Mark   Joyce,
    
	
 
    	
 
    	
Executive   Vice President  & CFO
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
BANK:
    	
M&T   BANK
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Derek Lynch
    
	
 
    	
Name:
    	
Derek   Lynch
    
	
 
    	
Title:
    	
Vice President
    

 

 

The undersigned (a) consents and agrees to this First Amendment, and (b) agrees that the Transaction Documents to which it is a party (including, without limitation, the Guaranty Agreement dated as of February 10, 2014) shall remain in full force and effect and shall continue to be the legal, valid and binding obligation of each such undersigned, enforceable against it in accordance with its terms.

 

	
 
    	
CONSENTED, ACKNOWLEDGED AND AGREED TO BY:
    
	
 
    	
 
    
	
 
    	
AMERIQUEST   BUSINESS SERVICES, INC., a New Jersey corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Joyce
    
	
 
    	
 
    	
Mark   Joyce,
    
	
 
    	
 
    	
Executive   Vice President  & CFO

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