Document:

Exhibit 10.8

 

PPN:
00778 AA 6

 

 

 

NOTE
PURCHASE AGREEMENT

 

dated
as of April 30, 2001

 

by
and between

 

 

RSTW
PARTNERS III, L.P.,

 

MASSACHUSETTS
MUTUAL LIFE INSURANCE COMPANY,

 

MASSMUTUAL
CORPORATE INVESTORS,

 

MASSMUTUAL
PARTICIPATION INVESTORS,

 

ADVANTAGE
MANAGEMENT GROUP, INC.,

 

KENAN
TRANSPORT COMPANY

 

and

 

KTC
ACQUISITION CORP.

 

regarding

 

$39,250,000
12.5% SENIOR SUBORDINATED NOTES

 

 

 

TABLE
OF CONTENTS

 

	
  I.

  	
  DESCRIPTION
  OF SENIOR SUBORDINATED NOTES AND COMMITMENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  DESCRIPTION
  OF SENIOR SUBORDINATED NOTES

  	
   

  
	
   

  	
  1.2

  	
  COMMITMENT; FUNDING

  	
   

  
	
   

  	
  1.3

  	
  CLOSING AND
  AMENDMENT/RESTRUCTURING FEES

  	
   

  
	
   

  	
  1.4

  	
  USE OF PROCEEDS

  	
   

  
	
   

  	
   

  	
   

  
	
  II.

  	
  PAYMENT
  AND PREPAYMENT OF SENIOR SUBORDINATED OBLIGATIONS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  PRINCIPAL AND
  INTEREST PAYMENTS

  	
   

  
	
   

  	
  2.2

  	
  OPTIONAL PREPAYMENTS

  	
   

  
	
   

  	
  2.3

  	
  MANDATORY PREPAYMENTS

  	
   

  
	
   

  	
  2.4

  	
  ADDITIONAL PAYMENTS

  	
   

  
	
   

  	
  2.5

  	
  LIQUIDATED DAMAGES

  	
   

  
	
   

  	
  2.6

  	
  DIRECT PAYMENT

  	
   

  
	
   

  	
  2.7

  	
  PAYMENTS PAYABLE
  ON BUSINESS DAYS

  	
   

  
	
   

  	
  2.8

  	
  INTEREST LAWS

  	
   

  
	
   

  	
  2.9

  	
  CERTAIN
  RIGHTS AND OBLIGATIONS AMONG HOLDERS

  	
   

  
	
   

  	
   

  	
   

  
	
  III.

  	
  REPRESENTATIONS
  AND WARRANTIES OF PURCHASERS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  REPRESENTATIONS
  AND WARRANTIES OF RSTW

  	
   

  
	
   

  	
  3.2

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE MASSMUTUAL INVESTORS

  	
   

  
	
   

  	
   

  	
   

  
	
  IV.

  	
  REPRESENTATIONS
  AND WARRANTIES OF THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  CORPORATE EXISTENCE AND AUTHORITY

  	
   

  
	
   

  	
  4.2

  	
  FINANCIAL STATEMENTS

  	
   

  
	
   

  	
  4.3

  	
  DEFAULT

  	
   

  
	
   

  	
  4.4

  	
  AUTHORIZATION
  AND COMPLIANCE WITH LAWS AND MATERIAL AGREEMENTS

  	
   

  
	
   

  	
  4.5

  	
  ENVIRONMENTAL
  CONDITION OF THE PROPERTY

  	
   

  
	
   

  	
  4.6

  	
  SOLVENCY

  	
   

  
	
   

  	
  4.7

  	
  LITIGATION AND JUDGMENTS

  	
   

  
	
   

  	
  4.8

  	
  RIGHTS IN PROPERTIES;
  LIENS

  	
   

  
	
   

  	
  4.9

  	
  ENFORCEABILITY

  	
   

  
	
   

  	
  4.10

  	
  INDEBTEDNESS

  	
   

  
	
   

  	
  4.11

  	
  TAXES

  	
   

  
	
   

  	
  4.12

  	
  USE OF
  PROCEEDS; MARGIN SECURITIES

  	
   

  
	
   

  	
  4.13

  	
  EMPLOYEE AND
  LABOR MATTERS AND PLANS

  	
   

  
	
   

  	
  4.14

  	
  DELIVERY OF ACQUISITION DOCUMENTS,
  MANAGEMENT OPTIONS, CONTINGENT OPTIONS, NON-COMPETE AGREEMENTS, AND
  EMPLOYMENT AGREEMENTS

  	
   

  
	
   

  	
  4.15

  	
  DISCLOSURE

  	
   

  
	
   

  	
  4.16

  	
  SUBSIDIARIES AND
  CAPITALIZATION

  	
   

  
	
   

  	
  4.17

  	
  CURRENT LOCATIONS

  	
   

  
	
   

  	
  4.18

  	
  INVESTMENT COMPANY ACT

  	
   

  
	
   

  	
  4.19

  	
  PUBLIC UTILITY
  HOLDING COMPANY ACT

  	
   

  
	
   

  	
  4.20

  	
  NO BURDENSOME
  RESTRICTIONS

  	
   

  
	
   

  	
  4.21

  	
  SECURITIES LAWS

  	
   

  
	
   

  	
  4.22

  	
  NO LABOR DISPUTES

  	
   

  
	
   

  	
  4.23

  	
  BROKERS

  	
   

  
	
   

  	
  4.24

  	
  INSURANCE

  	
   

  
	
   

  	
  4.25

  	
  CONDUCT OF BUSINESS

  	
   

  
	
   

  	
  4.26

  	
  RSTW 1998 NOTE
  AND RSTW 2000 NOTE

  	
   

  

 

i

 

	
  V.

  	
  CONDITIONS
  PRECEDENT TO OBLIGATIONS OF PURCHASERS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  EFFECTIVENESS
  OF SENIOR LOAN DOCUMENTS

  	
   

  
	
   

  	
  5.2

  	
  EFFECTIVENESS
  OF SUBORDINATION AGREEMENTS

  	
   

  
	
   

  	
  5.3

  	
  MINIMUM AVAILABILITY

  	
   

  
	
   

  	
  5.4

  	
  STOCKHOLDERS EQUITY

  	
   

  
	
   

  	
  5.5

  	
  ACQUISITION

  	
   

  
	
   

  	
  5.8

  	
  NO
  LITIGATION; CONSUMMATION OF TRANSACTIONS

  	
   

  
	
   

  	
  5.9

  	
  DOCUMENTS

  	
   

  
	
   

  	
  5.10

  	
  MATERIAL ADVERSE CHANGE

  	
   

  
	
   

  	
  5.11

  	
  FEES

  	
   

  
	
   

  	
  5.12

  	
  NO EVENT OF DEFAULT

  	
   

  
	
   

  	
  5.13

  	
  REPRESENTATIONS AND
  WARRANTIES

  	
   

  
	
   

  	
  5.14

  	
  APPROVALS AND CONSENTS

  	
   

  
	
   

  	
  5.15

  	
  MAXIMUM
  PRO FORMA COMBINED LEVERAGE RATIO

  	
   

  
	
   

  	
  5.16

  	
  ENVIRONMENTAL
  INSURANCE POLICIES

  	
   

  
	
   

  	
   

  	
   

  
	
  VI.

  	
  AFFIRMATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  FINANCIAL STATEMENTS

  	
   

  
	
   

  	
  6.2

  	
  CERTIFICATES; OTHER
  INFORMATION

  	
   

  
	
   

  	
  6.3

  	
  BOOKS AND RECORDS

  	
   

  
	
   

  	
  6.4

  	
  FINANCIAL DISCLOSURE

  	
   

  
	
   

  	
  6.5

  	
  DISCLOSURE OF
  MATERIAL MATTERS

  	
   

  
	
   

  	
  6.6

  	
  PERFORMANCE OF
  OBLIGATIONS

  	
   

  
	
   

  	
  6.7

  	
  PRESERVATION
  OF EXISTENCE AND CONDUCT OF BUSINESS

  	
   

  
	
   

  	
  6.8

  	
  MAINTENANCE OF PROPERTIES

  	
   

  
	
   

  	
  6.9

  	
  PAYMENT OF TAXES AND
  CLAIMS

  	
   

  
	
   

  	
  6.10

  	
  COMPLIANCE WITH LAWS

  	
   

  
	
   

  	
  6.11

  	
  PAYMENT OF EXPENSES

  	
   

  
	
   

  	
  6.12

  	
  PAYMENT OF
  LEASEHOLD OBLIGATIONS

  	
   

  
	
   

  	
  6.13

  	
  INSURANCE

  	
   

  
	
   

  	
  6.14

  	
  INSPECTION RIGHTS

  	
   

  
	
   

  	
  6.15

  	
  NEGATIVE PLEDGE

  	
   

  
	
   

  	
  6.16

  	
  MAINTENANCE OF EQUIPMENT

  	
   

  
	
   

  	
  6.17

  	
  NOTICES

  	
   

  
	
   

  	
  6.18

  	
  ADDITIONAL NOTICES

  	
   

  
	
   

  	
  6.19

  	
  SENIOR LOAN
  DOCUMENT AMENDMENTS

  	
   

  
	
   

  	
  6.20

  	
  FURTHER ASSURANCES

  	
   

  
	
   

  	
  6.21

  	
  COMPLIANCE WITH
  ERISA AND THE CODE

  	
   

  
	
   

  	
  6.22

  	
  COMPLIANCE
  WITH REGULATIONS U AND X

  	
   

  
	
   

  	
  6.23

  	
  FINANCIAL COVENANTS

  	
   

  
	
   

  	
  6.24

  	
  FISCAL YEAR

  	
   

  
	
   

  	
  6.25

  	
  BOARD OBSERVATION RIGHTS

  	
   

  
	
   

  	
  6.26

  	
  ENVIRONMENTAL COSTS

  	
   

  
	
   

  	
  6.27

  	
  COMMUNICATION WITH
  ACCOUNTANTS

  	
   

  
	
   

  	
  6.28

  	
  GUARANTY

  	
   

  
	
   

  	
  6.29

  	
  GENERAL
  CERTIFICATE OF KENAN’S AND PCT’S SECRETARY

  	
   

  
	
   

  	
   

  	
   

  
	
  VII.

  	
  NEGATIVE COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  INDEBTEDNESS

  	
   

  
	
   

  	
  7.2

  	
  LIMITATION ON LIENS

  	
   

  
	
   

  	
  7.3

  	
  MERGER ACQUISITION, DISSOLUTION AND SALE OF
  ASSETS

  	
   

  
	
   

  	
  7.4

  	
  RESTRICTED PAYMENTS

  	
   

  
	
   

  	
  7.5

  	
  LOANS AND INVESTMENTS

  	
   

  
	
   

  	
  7.6

  	
  TRANSACTIONS WITH
  AFFILIATES

  	
   

  
	
   

  	
  7.7

  	
  NATURE OF BUSINESS

  	
   

  
	
   

  	
  7.8

  	
  MODIFICATION
  OF SENIOR LOAN AGREEMENT

  	
   

  

 

ii

 

	
   

  	
  7.9

  	
  MODIFICATION OF EMPLOYMENT AGREEMENTS,
  THE ACQUISITION DOCUMENTS, LEASE, CONTINGENT OPTIONS

  	
   

  
	
   

  	
  7.10

  	
  MODIFICATION OF MANAGEMENT AGREEMENT

  	
   

  
	
   

  	
  7.11

  	
  CAPITAL EXPENDITURES

  	
   

  
	
   

  	
  7.12

  	
  REMUNERATION

  	
   

  
	
   

  	
  7.13

  	
  PREPAYMENTS

  	
   

  
	
   

  	
  7.14

  	
  LIMITATION ON
  CONTINGENT PAYMENTS

  	
   

  
	
   

  	
  7.15

  	
  STOCK OPTION PLAN

  	
   

  
	
   

  	
   

  	
   

  
	
  VIII.

  	
  EVENTS OF
  DEFAULT AND REMEDIES THEREFOR

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  EVENTS OF DEFAULT

  	
   

  
	
   

  	
  8.2

  	
  REMEDIES
  OF HOLDERS UPON OCCURRENCE OF EVENT OF DEFAULT

  	
   

  
	
   

  	
  8.3

  	
  ANNULMENT OF ACCELERATION

  	
   

  
	
   

  	
  8.4

  	
  PAYMENT OF SENIOR SUBORDINATED OBLIGATIONS
  AND REMEDIES

  	
   

  
	
   

  	
  8.5

  	
  CONDUCT NO WAIVER

  	
   

  
	
   

  	
  8.6

  	
  NOTICE OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  
	
  IX.

  	
  SUBORDINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  X.

  	
  FORM OF SENIOR
  SUBORDINATED NOTES, REGISTRATION, TRANSFER AND REPLACEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  10.1

  	
  FORM OF SENIOR
  SUBORDINATED NOTES

  	
   

  
	
   

  	
  10.2

  	
  SENIOR
  SUBORDINATED NOTES REGISTER

  	
   

  
	
   

  	
  10.3

  	
  ISSUANCE OF NEW SENIOR SUBORDINATED
  NOTES UPON EXCHANGE OR TRANSFER

  	
   

  
	
   

  	
  10.4

  	
  REPLACEMENT
  OF SENIOR SUBORDINATED NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  XI.

  	
  INTERPRETATION OF
  AGREEMENT

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  11.1

  	
  CERTAIN TERMS DEFINED

  	
   

  
	
   

  	
  11.2

  	
  ACCOUNTING PRINCIPLES

  	
   

  
	
   

  	
  11.3

  	
  OTHER INTERPRETIVE
  PROVISIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  XII.

  	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  12.1

  	
  EXPENSES

  	
   

  
	
   

  	
  12.2

  	
  INDEMNIFICATION

  	
   

  
	
   

  	
  12.3

  	
  NOTICES

  	
   

  
	
   

  	
  12.4

  	
  REPRODUCTION OF
  DOCUMENTS

  	
   

  
	
   

  	
  12.5

  	
  ASSIGNMENT, SALE OF INTEREST

  	
   

  
	
   

  	
  12.6

  	
  SUCCESSORS AND ASSIGNS

  	
   

  
	
   

  	
  12.7

  	
  HEADINGS

  	
   

  
	
   

  	
  12.8

  	
  COUNTERPARTS

  	
   

  
	
   

  	
  12.9

  	
  RELIANCE ON
  AND SURVIVAL PROVISIONS

  	
   

  
	
   

  	
  12.10

  	
  INTEGRATION AND SEVERABILITY

  	
   

  
	
   

  	
  12.11

  	
  LAW GOVERNING

  	
   

  
	
   

  	
  12.12

  	
  WAIVERS; MODIFICATION

  	
   

  
	
   

  	
  12.13

  	
  WAIVER OF JURY TRIAL

  	
   

  
	
   

  	
  12.14

  	
  AMENDMENT AND
  RESTATEMENT

  	
   

  

 

 

	
  ANNEX, SCHEDULES AND EXHIBITS

  
	
   

  
	
  Annex I

  	
  -

  	
  Information
  Concerning Purchasers

  
	
   

  	
   

  	
   

  
	
  Schedule 4.2

  	
  -

  	
  Certain Changes

  
	
  Schedule 4.3

  	
  -

  	
  Defaults under Existing Agreements

  

 

iii

 

	
  Schedule 4.4

  	
  -

  	
  Authorizations, Approvals, Consents and Filings

  
	
  Schedule 4.5

  	
  -

  	
  Environmental Condition of Property

  
	
  Schedule 4.7

  	
  -

  	
  Litigation and Judgments

  
	
  Schedule 4.8

  	
  -

  	
  Rights in Properties; Liens

  
	
  Schedule 4.11

  	
  -

  	
  Certain Tax Matters

  
	
  Schedule 4.13

  	
  -

  	
  Employee and Labor Matters and Plans

  
	
  Schedule 4.15

  	
  -

  	
  Disclosure

  
	
  Schedule 4.16

  	
  -

  	
  Capitalization

  
	
  Schedule 4.17

  	
  -

  	
  Current Locations

  
	
  Schedule 4.22

  	
  -

  	
  Labor Disputes

  
	
  Schedule 4.23

  	
  -

  	
  Brokers

  
	
  Schedule 4.24

  	
  -

  	
  Insurance

  
	
  Schedule 4.25

  	
  -

  	
  Conduct of Business

  
	
  Schedule 7.6

  	
  -

  	
  Transactions with Affiliates

  
	
   

  
	
  Exhibit A-1 through A-7

  	
  -

  	
  Form of Senior Subordinated Notes

  
	
  Exhibit B

  	
  -

  	
  Form of Legal Opinion

  
	
  Exhibit C

  	
  -

  	
  Form of Officer’s Compliance Certificate

  
	
  Exhibit D

  	
  -

  	
  Permitted Indebtedness

  
	
  Exhibit E

  	
  -

  	
  Permitted Liens

  
					

 

iv

 

PPN: 00778 AA 6

 

NOTE
PURCHASE AGREEMENT

 

THIS
NOTE PURCHASE AGREEMENT (this “Agreement”),
dated as of April 30, 2001, is by and among ADVANTAGE MANAGEMENT GROUP, INC.,
an Ohio corporation (“AMGI”) (AMGI formerly was known as Advantage
Acquisition Corp., an Ohio corporation (“AAC”) which was the
successor-in-interest to the merger of Advantage Management Group, Inc., an
Ohio corporation with and into AAC), KTC ACQUISITION CORP., an North Carolina corporation
(“KTC”), jointly and severally, RSTW PARTNERS III, L.P., a Delaware limited
partnership (“RSTW”), MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY,
a mutual life insurance company established under the laws of the Commonwealth
of Massachusetts (“MMLI”), MASSMUTUAL CORPORATE INVESTORS, a
Massachusetts business trust (“MCI”), and MASSMUTUAL PARTICIPATION INVESTORS,
a Massachusetts business trust (“MPI”). 
MMLI, MCI and MPI are hereinafter referred to, collectively, as the “MassMutual
Investors”. RSTW and the MassMutual Investors are collectively referred to
herein as the “Purchasers”. KTC or, from and after the Kenan Merger (as
hereinafter defined), Kenan Transport Company, a North Carolina corporation (“Kenan”)
as the surviving entity of the Kenan Merger and AMGI at times are referred to
herein individually and collectively, as the “Company”.  Capitalized terms used in this Agreement are
defined in Section 11.1.

 

WITNESSETH:

 

WHEREAS, RSTW and AMGI are parties to the Original Agreement and the
First Amendment pursuant to which AMGI issued the RSTW 1998 Note and RSTW 2000
Note to RSTW.

 

WHEREAS, KTC/AMG Holdings Corp., a Delaware corporation (“Parent”),
Advantage Management Holdings Corp., a Delaware corporation (“AMHC”),
Kenan and KTC have entered into that certain Agreement and Plan of Merger,
dated as of January 25, 2001 (the “Kenan Merger Agreement”),
pursuant to which Parent will acquire all of the issued and outstanding shares
of common stock of Kenan (the “Kenan Acquisition Transaction”).

 

WHEREAS, pursuant to the terms of the Kenan Merger Agreement, KTC will
merge (the “Kenan Merger”) with and into Kenan, with Kenan as the
surviving corporation.

 

WHEREAS, AMHC, AMHC Acquisition Corp., a Delaware corporation (“AMHC
Acquisition Corp.”), and Parent have entered into that certain Agreement
and Plan of Merger, dated as of April 19, 2001 (the “Advantage Merger
Agreement”) pursuant to which Parent will exchange shares of its capital
stock, warrants and options for AMHC’s Capital Stock, warrants and options (the
“Advantage Acquisition Transaction”).

 

WHEREAS, pursuant to the terms of the Advantage Merger Agreement, the
Advantage Merger will occur prior to or on the Closing Date.

 

 

WHEREAS, the Company and Purchasers desire to amend and restate the
Original Agreement as set forth herein to, among other things, provide for the
Kenan Acquisition Transaction, the Advantage Acquisition Transaction and to
allow and provide for the issuance of certain new and amended and restated
senior subordinated notes by the Company to RSTW and of certain new senior
subordinated notes to the MassMutal Investors.

 

NOW, THEREFORE, to induce Purchasers to purchase the Senior
Subordinated Notes from the Company, and in consideration for $10.00 and other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows, intending to be legally
bound:

 

I.                                         DESCRIPTION
OF SENIOR SUBORDINATED NOTES AND COMMITMENT

 

1.1                                 Description
of Senior Subordinated Notes. 
Simultaneously with the execution of this Agreement, and subject to the
terms and conditions of this Agreement, the Company will authorize the issuance
and sale of the Senior Subordinated Notes which shall be dated the Closing Date
and shall be in the aggregate original principal amount of $26,000,000, and the
amendment, restatement, modification and extension (but not extinguishment or
novation) of Senior Subordinated Notes which shall be dated the Closing Date
and in the aggregate original principal amount of $13,250,000 and in each case
shall bear interest at the fixed rate of 12.5% per annum; provided, however,
that upon the occurrence of any Event of Default, and during the continuation
thereof, the unpaid principal amount of the Senior Subordinated Notes shall, at
the election of the respective holder thereof, bear interest at the rate of
15.0% per annum.  Interest on the Senior
Subordinated Notes shall be computed on the basis of the actual number of days
elapsed over a 360 day year.

 

1.2                                 Commitment;
Funding.  On the Closing
Date, the Company agrees to issue:

 

(a)                                  to RSTW, a Senior
Subordinated Note in the original principal amount of $13,000,000 (the “RSTW
New Note”), which promissory note shall be in the form attached hereto as Exhibit A-1;

 

(b)                                 to MMLI, a Senior
Subordinated Note in the original principal amount of $7,665,296 (the “MMLI-A
Note”), which promissory note shall be in the form attached hereto as Exhibit A-2;

 

(c)                                  to MMLI, a Senior
Subordinated Note in the original principal amount of $2,555,099 (the “MMLI-B
Note”), which promissory note shall be in the form attached hereto as Exhibit A-3;

 

(d)                                 to MCI, a Senior
Subordinated Note in the original principal amount of $1,817,435 (the “MCI
Note”), which promissory note shall be in the form attached hereto as Exhibit A-4;

 

2

 

(e)                                  to MPI, a Senior
Subordinated Note in the original principal amount of $962,170 (the “MPI
Note”), which promissory note shall be in the form attached hereto as Exhibit A-5;
and

 

(f)                                    to RSTW:

 

(i)                                     a Senior
Subordinated Note in the original principal amount of $12,000,000 (the “RSTW
Amended 1998 Note”), which promissory note shall be given in amendment,
restatement, modification and extension (but not extinguishment or novation) of
the RSTW 1998 Note and shall be in the form attached hereto as Exhibit A-6;
and

 

(ii)                                  a Senior Subordinated
Note in the original principal amount of $1,250,000 (the “RSTW Amended 2000
Note”), which promissory note shall be given in amendment, restatement,
modification and extension (but not extinguishment or novation) of the RSTW
2000 Note and shall be in the form attached hereto as Exhibit A-7.

 

Subject to the terms and conditions hereof and on the basis of the
representations and warranties hereinafter set forth, (A) the Company agrees to
sell to RSTW, and RSTW agrees to purchase from the Company, the RSTW New Note
at a purchase price of 100% of the principal amount thereof, (B) the Company
agrees to sell to MMLI, and MMLI agrees to purchase from the Company, the MMLI-A
Note at a purchase price of 100% of the principal amount thereof, (C) the
Company agrees to sell to MMLI, and MMLI agrees to purchase from the Company,
the MMLI-B Note at a purchase price of 100% of the principal amount thereof,
(D) the Company agrees to sell to MCI, and MCI agrees to purchase from the
Company, the MCI Note, at a purchase price of 100% of the principal amount
thereof, (E) the Company agrees to sell to MPI, and MPI agrees to purchase from
the Company, the MPI Note, at a purchase price of 100% of the principal amount
thereof, (F) the Company agrees to issue to RSTW, and RSTW agrees to accept,
the RSTW Amended 1998 Note in amendment, restatement, modification and
extension (but not extinguishment or novation) of the RSTW 1998 Note, and (G) the
Company agrees to issue to RSTW, and RSTW agrees to accept, the RSTW Amended
2000 Note in amendment, restatement, modification and extension (but not
extinguishment or novation) of the RSTW 2000 Note.  Delivery of the RSTW Amended 1998 Note and the RSTW Amended 2000
Note shall be made as of the Closing Date in the offices of Fulbright &
Jaworski L.L.P., 666 Fifth Avenue, New York, New York 10103-3198, in exchange
for the 1998 RSTW Note and the 2000 RSTW Note. 
Delivery of the RSTW New Note, the MMLI Note, the MCI Note and the MPI
Note shall be made as of the Closing Date in the offices of Fulbright &
Jaworski L.L.P., 666 Fifth Avenue, New York, New York 10103-3198, against
payment of the purchase price thereof in immediately available funds, disbursed
on the Closing Date to such Person(s) as the Company shall designate in
writing.  The Senior Subordinated Notes
will be delivered to the appropriate Purchaser in fully registered form, and
shall be issued in the appropriate Purchaser’s name or the name of its
nominee.  Simultaneously with the
issuance of the Senior Subordinated Notes, pursuant to the Senior Loan
Agreement, the Senior Lender will provide the Company with a revolving loan
facility in an amount not to exceed $15,000,000, a term loan A facility in an
amount not to exceed $45,000,000 and a term loan B facility in an amount not to

 

3

 

exceed $45,000,000.  The Company
expects a total of approximately $90,000,000 will have been advanced by the
Senior Lender to Company on the Closing Date.

 

1.3                                 Closing
and Amendment/Restructuring Fees.  The Company and RSTW hereby acknowledge that on December 31,
1998, AMGI paid to RSTW a closing fee of $240,000, which fee has been fully
earned and is nonrefundable.  The Company
shall pay to (a) RSTW a closing fee of $260,000 and an amendment/restructuring
fee of $100,000, each in immediately available funds, on the Closing Date, each
of which fees shall be deemed fully earned and nonrefundable on the Closing
Date and (b) to the MassMutual Investors $260,000, in immediately available
funds, on the Closing Date, which fee shall be deemed fully earned and
nonrefundable on the Closing Date. 
Purchasers may, at their option, deduct the amount of these closing fees
and amendment/restructuring fees from their purchase price of its Senior
Subordinated Notes.

 

1.4                                 Use
of Proceeds.  The proceeds
from the sale of the Senior Subordinated Notes shall be used solely to finance
a portion of the acquisition of Kenan pursuant to the Kenan Merger Agreement,
to refinance existing indebtedness of the Company, and for general working
capital of the Company.

 

II.                                     PAYMENT
AND PREPAYMENT OF SENIOR SUBORDINATED OBLIGATIONS

 

2.1                                 Principal
and Interest Payments. 
Principal and interest on the Senior Subordinated Notes shall be due and
payable as follows:

 

(a)                                  The entire principal
amount of the Senior Subordinated Notes shall be due and payable on the
Termination Date.

 

(b)                                 Interest shall be due
and payable on the Senior Subordinated Notes (i) quarterly in arrears on
the last Business Day of March, June, September and December, commencing
on the last Business Day of June, 2001, and (ii) on the Termination Date.

 

2.2                                 Optional
Prepayments.  At any time
during which there is no Senior Debt outstanding (after giving effect to the
proposed optional prepayment under this Section 2.2), the Company may,
upon notice given as provided below, at any time and from time to time prepay
all or any part of the principal of the Senior Subordinated Notes, by payment to
the respective Purchasers of the principal amount to be prepaid, plus (a)
accrued unpaid interest on the principal amount so prepaid, (b) any expenses,
indebtedness and/or damages for which Purchasers may be entitled to receive
payment or reimbursement hereunder or, if the Senior Subordinated Notes are
being prepaid in full, the aggregate amount of all other Senior Subordinated
Obligations, and (c) a premium equal to the product of the applicable Premium
Percentage multiplied by the principal amount of the Senior Senior Subordinated
Note so prepaid.  Each partial
prepayment under this Section 2.2 shall be in a principal amount of
not less than $500,000 or, if greater than $500,000, then in integral multiples
of $100,000.  Each prepayment under this
Section 2.2 shall be applied first to accrued interest, then to any
applicable Prepayment Fee, and then to principal.  The amount of any such prepayment may not be reborrowed by the
Company.  The Company shall

 

4

 

give notice of any optional prepayment to Purchasers not less than
thirty (30) days nor more than sixty (60) days before the date for prepayment,
specifying in each such notice the date upon which prepayment is to be made and
the principal amount (together with accrued interest and any applicable
Prepayment Fee) to be prepaid on such date. 
Notice of prepayment having been so given, the applicable prepayment
amount shall become due and payable on the specified prepayment date.  Notwithstanding the foregoing, if the
prepayment is made from the proceeds of an Initial Public Offering, the
Prepayment Fee payable with respect to such prepayment under this Section 2.2
shall be reduced by fifty percent (50%). 
The Company shall have no right to prepay the Senior Subordinated Notes
except as provided in this Section 2.2 or in Section 2.3.

 

2.3                                 Mandatory
Prepayments.  Any prepayment
under this Section 2.3 shall be applied first to accrued interest,
then to any applicable Prepayment Fee, and then to principal.  The amount of any such mandatory prepayment
may not be reborrowed by the Company. 
Subject to the restrictions elsewhere set forth herein, the Company
shall make mandatory prepayments to the Holders on the Senior Subordinated Notes
in each of the following circumstances:

 

(a)                                  In the event of any
public offering by any of the Credit Parties’ equity securities, the Company
shall prepay the Senior Subordinated Notes in an amount equal to the lesser of
the (i) net proceeds of any such public offering (after giving effect to any
payments made to the Senior Lender in permanent reduction of the Senior Debt
under the terms of the Senior Loan Documents as in effect on the Closing Date)
or (ii) the aggregate amount of all Senior Subordinated Obligations, such
prepayment to be made within five (5) Business Days of receipt of such net
proceeds.  At such time as each payment
by the Company pursuant to this Section 2.3(a) is due, the Company
shall also pay to Purchaser a premium equal to the product of the applicable
Premium Percentage multiplied by the principal amount of the Senior
Subordinated Note required to be so paid by the Company pursuant to this Section 2.3(a);
provided, however, that if the prepayment is made from the proceeds of
an Initial Public Offering, the Prepayment Fee payable with respect to such
prepayment under this Section 2.3(a) shall be reduced by fifty
percent (50%).

 

(b)                                 If during any Fiscal
Year the Credit Parties shall sell or otherwise dispose of properties (other
than (i) as permitted by Section 6.8, Section 6.16 or Section 7.3,
(ii) sales or dispositions of property or properties that have a fair
value of up to $250,000 cumulatively in the aggregate during the term of this
Agreement or (iii) a sale or disposition of all or substantially all of
its assets in a transaction pursuant to which Section 2.3(c) is
applicable), then the Company shall give prompt written notice to each Holder,
which shall contain a written, irrevocable offer by the Company to prepay, on a
date specified in such notice (which shall be neither less than thirty (30)
days nor more than sixty (60) days after the date of such notice), each such
Holder’s Senior Subordinated Notes by an amount equal to an amount of the
proceeds from such sale divided on a pro rata basis among all Holders based upon
the original principal amount of each such Holder’s Senior Subordinated Note
(after giving effect to any payments made to the Senior Lender in permanent
reduction of the Senior Debt under the terms of the Senior Loan Documents as in
effect on the Closing Date); provided, that, so long as no Default or
Event of Default has occurred and is continuing, the prepayment required

 

5

 

pursuant to this Section 2.3(b) shall not be required with
respect to the Net Proceeds of any sale or other voluntary disposition of any
terminal by any Credit Party to the extent that (x) such Credit Party shall
have notified the Purchasers in writing on or prior to the date of receipt of
such Net Proceeds of such Credit Party’s intention to invest such Net Proceeds
in the acquisition of additional terminals (provided such acquisition is not
prohibited under this Agreement) (it being understood that during the term of
this Agreement two such additional terminals may be acquired prior to such
voluntary disposition of any terminals as long as such occurrence is specified
in the notice delivered pursuant to this clause (x); provided, that, (i) the
Credit Parties express an intention, in such notice, to dispose of a terminal
that services substantially the same geographic area as the terminal being
acquired, (ii) such voluntary disposition and receipt of Net Proceeds occurs
within 180 days following such acquisitions of such additional terminal and
(iii) the Net Proceeds of such disposition shall be applied first to the
prepayment of the Revolving Credit Loans, up to an amount not to exceed the
purchase price of such additional terminal, and then as otherwise required
under Section 2.3(b)) and (y) such Net Proceeds are so invested within 180
days after the receipt thereof, it being understood that to the extent that all
or any portion of such Net Proceeds are not so invested at the end of such 180
day period (or by such earlier time as such Credit Party determined not to so
invest such Net Proceeds in additional terminals) any such uninvested amount of
such Net Proceeds shall be then immediately applied as otherwise required under
this Section 2.3(b).  Upon
acceptance of such offer by such Holder given to the Company at least ten (10)
days prior to the date of prepayment specified in the Company’s offer, such
prepayment shall be made with the interest accrued on such principal amount
prepaid.  If a Holder accepts its
respective offer, the principal amount of the Senior Subordinated Notes offered
to be prepaid to such Holder shall become due and payable on the date specified
in such offer.  At such time as each
payment by the Company pursuant to this Section 2.3(b) is due, the
Company shall also pay to Purchaser a premium equal to the product of fifty
percent (50%) of the applicable Premium Percentage multiplied by the principal
amount of the Senior Subordinated Note required to be so paid by the Company
pursuant to this Section 2.3(b).

 

(c)                                  In the event of any
sale or other disposition of all or substantially all of the stock or assets of
the Parent (which shall include a recapitalization of the Parent in which at
least 80% of the then outstanding Capital Stock of Parent is purchased from
Parent by a party not affiliated with Sterling or RFE), AMHC, the Company or
any Subsidiary in a single transaction or series of transactions, or as a
result of a Casualty Event, or as a result of a return to the Parent, AMHC, the
Company or any of its Subsidiaries of any surplus assets of any pension plan,
the Company shall prepay the Senior Subordinated Notes in an amount equal to
the lesser of (i) the aggregate net cash proceeds of such sales or
dispositions, Casualty Event (to the extent not subsequently applied or
committed to apply toward replacement, restoration, rebuilding or repair of the
damaged property within the earlier of (a) one hundred twenty (120) days after
the receipt of such net cash proceeds or (b) one hundred eighty (180) days
after the occurrence of such Casualty Event) and returns to the Parent, AMHC,
the Company or any of its Subsidiaries of any surplus assets of any pension
plan (after giving effect to any payments required to be made to the Senior
Lender in reduction of the Senior Debt under the terms of the Senior

 

6

 

Loan Documents as in effect on the Closing Date) or (ii) the aggregate
amount of all Senior Subordinated Obligations, with such prepayment to be made
within five (5) Business Days of receipt of such net proceeds; provided, however,
if the Company certifies to the Purchasers within five (5) Business Days of the
Company’s receipt of net proceeds from a Casualty Event that it intends to
apply or commit to apply such proceeds towards the replacement, restoration,
rebuilding or repair of the damaged property, as allowed in clause (i)
above, the date for required payment shall be extended until the later to occur
of the dates set forth in (i)(a) or (i)(b) above. At such time as each payment
by the Company pursuant to this Section 2.3(c) is due, the Company
shall also pay to Purchaser a premium equal to the product of fifty percent
(50%) of the applicable Premium Percentage multiplied by the principal amount
of the Senior Subordinated Note required to be so paid by the Company pursuant to
this Section 2.3(c).

 

2.4                                 Additional
Payments.  Unless otherwise
provided herein or in the Other Agreements, all Senior Subordinated Obligations
shall be payable by the Company to the Holder thereof, on demand, and shall
bear interest from the date of demand until paid at the rate of interest then
applicable under Section 1.1.

 

2.5                                 Liquidated
Damages.  Any Prepayment Fee
payable pursuant to Section 2.2 or Section 2.3 shall be
payable as liquidated damages for loss of the opportunity to recover loan origination
expenses and profits over the balance of the term of this Agreement and not as
a penalty.

 

2.6                                 Direct
Payment.  The Company will
pay all sums becoming due hereunder and on the Senior Subordinated Notes to
Purchasers at the address specified for Purchasers on Annex I
hereto, by wire transfer in U.S. Dollars of Federal Reserve Funds or other
immediately available funds, to the account specified for Purchasers on Annex
I, or at such other address or in such other form as Purchasers shall have
designated by notice to the Company at least five (5) Business Days prior to
the date of any payment, in each case without presentment and without notations
being made thereon.  All payments by the
Company shall be made without set-off or counterclaim.  Any wire transfer shall identify such
payment as “12.5% Senior Subordinated Notes” and shall identify the payment as
principal, premium, Prepayment Fee, interest and/or reimbursement of costs and
expenses, together with the applicable date or period to which it relates.

 

2.7                                 Payments
Payable on Business Days. 
Payments of all amounts due hereunder or under the Senior Subordinated
Notes shall be made on a Business Day. Any payment due on a day that is not a
Business Day shall be made on the next Business Day, together with all interest
(if any) accrued in the interim.

 

2.8                                 Interest
Laws.  Notwithstanding any
provision to the contrary contained in this Agreement or any Other Agreement,
the Company shall not be required to pay, and Purchasers shall not be permitted
to contract for, take, reserve, charge or receive, any compensation which
constitutes interest under applicable law in excess of the maximum amount of
interest permitted by law (“Excess Interest”).  If any Excess Interest is provided for or determined by a court of
competent jurisdiction to have been provided for in this Agreement or in any
Other Agreement

 

7

 

or otherwise contracted for, taken, reserved, charged or received, then
in such event:  (a) the provisions of
this Section 2.8 shall govern and control; (b) the Company
shall not be obligated to pay any Excess Interest; (c) any Excess Interest that
Purchasers may have contracted for, taken, reserved, charged or received
hereunder shall be, at Purchasers’ option, (i) applied as a credit against the
outstanding principal balance of the Senior Subordinated Obligations or accrued
and unpaid interest (not to exceed the maximum amount permitted by law), (ii)
refunded to the payor thereof, or (iii) any combination of the foregoing; (d)
the interest provided for shall be automatically reduced to the maximum lawful
rate allowed from time to time under applicable law (the “Maximum Rate”),
and this Agreement and the Other Agreements shall be deemed to have been, and
shall be, reformed and modified to reflect such reduction; and (e) the Company
shall have no action against Purchasers for any damages arising due to any
Excess Interest. Notwithstanding the foregoing, if for any period of time
interest on any Senior Subordinated Obligations is calculated at the Maximum
Rate rather than the applicable rate under this Agreement, and thereafter such
applicable rate becomes less than the Maximum Rate, the rate of interest
payable on such Senior Subordinated Obligations shall remain at the Maximum
Rate until Purchasers shall have received the amount of interest which
Purchasers would have received during such period on such Senior Subordinated
Obligations had the rate of interest not been limited to the Maximum Rate
during such period.  All sums paid or
agreed to be paid hereunder or under the Other Agreements for the use,
forbearance or detention of sums due shall, to the extent permitted by
applicable law, be amortized, pro-rated, allocated and spread throughout the
full term of the Senior Subordinated Obligations until payment in full so that
the rate or amounts of interest on account of the Senior Subordinated
Obligations does not exceed the Maximum Rate. The terms of this Section 2.8
shall be deemed incorporated into each Other Agreement and any other document
or instrument between the Company and Purchasers or directed to the Company by
Purchasers, whether or not specific reference to this Section 2.8
is made.

 

2.9                                 Certain
Rights and Obligations Among Holders.  The provisions of this Section 2.9 are solely for the
benefit of the Holders, and neither the Company nor any other Person shall have
any rights with respect to or be entitled to enforce this Section 2.9.

 

(a)                                  Sharing
of Payments.  If, at any time or
times, a Holder shall not have received a payment on its Senior Subordinated
Notes, then it shall notify the other Holders of such fact, the amount of such
nonpayment, the date or period to which it relates and, subject to the terms of
the Senior Subordination Agreement, such other Holders which have received such
payments shall remit to the unpaid Holder such amount as is necessary to
allocate the aggregate amount of such payments pro rata among all
Holders.  The amount of any such
remittance shall be credited to the Senior Subordinated Notes of the Holder to
whom it is remitted, and shall not be credited to the Senior Subordinated Notes
of the remitting Holder.

 

(b)                                 Sharing
of Prepayments.  Subject to the
terms and provisions of the Senior Subordination Agreement, if, at any time or
times, a Holder shall receive a prepayment on its Senior Subordinated Notes, it
shall notify the other Holders of the amount and date of such prepayment.  If all other Holders shall not have received
a pro rata prepayment as agreed, the Holder giving such notice shall
remit to the other Holders such amount as is necessary to distribute such
prepayment pro rata among all Holders; provided, however,
that any Holder shall

 

8

 

have the right to decline acceptance of its pro rata share of
any mandatory prepayment and such amounts declined shall not be credited to the
Senior Subordinated Notes of such Holder. 
The amount of any such remittance shall be credited to the Senior
Subordinated Notes of the Holder to whom it is remitted, and shall not be
credited to the Senior Subordinated Notes of the remitting Holder.

 

III.                                 REPRESENTATIONS
AND WARRANTIES OF PURCHASERS

 

3.1                                 Representations
and Warranties of RSTW.  RSTW
represents and warrants to the Company as follows:

 

(a)                                  Existence.  It is a limited partnership duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization.

 

(b)                                 Authority.  It has the right and partnership power and
authority to enter into, execute, deliver and perform its obligations under
this Agreement, and its partners, officers or agents executing and delivering
this Agreement are duly authorized to do so. 
This Agreement has been duly and validly executed and delivered and
constitutes the legal, valid and binding obligation of RSTW, enforceable in
accordance with its terms.

 

(c)                                  Investor
Status.  It (i) is an
“accredited investor,” as that term is defined in Regulation D under the
Securities Act, or (ii) has such knowledge, skill, sophistication and experience
in business and financial matters, based on actual participation, that it is
capable of evaluating the merits and risks of the purchase of the Senior
Subordinated Notes from the Company and the suitability thereof for RSTW.

 

(d)                                 Investment
for Own Account.  RSTW is acquiring
the Senior Subordinated Notes for investment for its own account and not with a
view to any distribution thereof in violation of applicable securities laws.

 

(e)                                  Legend
on Notes.  It agrees that the Senior
Subordinated Notes will bear the appropriate legends referencing restrictions
on transfer and will not be offered, sold or transferred in the absence of
registration or exemption under applicable securities laws.

 

3.2                                 Representations
and Warranties of the MassMutual Investors.  Each MassMutual Investor represents and
warrants to the Company as follows:

 

(a)                                  Existence.  It is a corporation or business trust duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its organization.

 

(b)                                 Authority.  It has the right and corporate power and
authority to enter into, execute, deliver and perform its obligations under
this Agreement, and its directors, officers or agents executing and delivering
this Agreement are duly authorized to do so. 
This Agreement has been duly and validly executed and delivered and
constitutes the legal, valid and binding obligation of it, enforceable in
accordance with its terms.

 

9

 

(c)                                  Investor
Status.  It (i) is an
“accredited investor,” as that term is defined in Regulation D under the
Securities Act, or (ii) has such knowledge, skill, sophistication and
experience in business and financial matters, based on actual participation,
that it is capable of evaluating the merits and risks of the purchase of the
Senior Subordinated Notes from the Company and the suitability thereof for it.

 

(d)                                 Investment
for Own Account.  It is acquiring
the Senior Subordinated Notes for investment for its own account and not with a
view to any distribution thereof in violation of applicable securities laws.

 

(e)                                  Legend
on Notes.  It agrees that the Senior
Subordinated Notes will bear the appropriate legends referencing restrictions
on transfer and will not be offered, sold or transferred in the absence of
registration or exemption under applicable securities laws.

 

IV.                                REPRESENTATIONS
AND WARRANTIES OF THE COMPANY

 

To induce Purchasers to enter into this Agreement, the Company
represents and warrants to Purchasers that the following statements are, and as
of the effectiveness of the consummation of the Kenan Acquisition Transaction
and the Advantage Acquisition Transaction will be, true, correct and complete
as of the Closing Date:

 

4.1                                 Corporate
Existence and Authority. 
Each Credit Party (a) is a corporation duly organized, validly
existing, and in good standing under the laws of the State of its
incorporation; (b) has all requisite corporate power and authority to own
its assets and carry on its business as now conducted; and (c) is qualified
to do business in all jurisdictions in which the nature of its business makes
such qualification necessary and where failure to so qualify would have a
Material Adverse Effect.  Each Credit
Party has the corporate power and authority to execute, deliver, and perform
its obligations under this Agreement, the Acquisition Documents, the Senior
Loan Documents, and all Other Agreements to which it is or may become a party.

 

4.2                                 Financial
Statements.  The Company has
delivered to Purchasers:

 

(a)                                  audited
financial statements of (i) AMHC, including AMGI and all Subsidiaries, on a
consolidated basis, as at and for the Fiscal Year ended December 31, 2000
and (ii) Kenan and all subsidiaries, on a consolidated basis, as at and for the
Fiscal Year ended December 31, 2000;

 

(b)                                 unaudited,
interim financial statements of (i) AMHC, including AMGI and all Subsidiaries
for the three (3) month period ended March 31, 2001 and (ii) Kenan and all
Subsidiaries for the three (3) month period ended March 31, 2001;

 

(c)                                  cash
flow projections and analyses of the Credit Parties, on a consolidated basis,
for the five-year period following the Closing Date together with a written
statement of the assumptions underlying them; and

 

10

 

(d)                                 pro
forma Closing Date balance sheets for the Credit Parties, on a consolidated
basis, reflecting a valuation of all of the Credit Parties’ assets and
liabilities based on GAAP, and adjusted, as appropriate, as of March 31,
2001, taking into account all transactions taking place on the Closing Date,
all certified by the Parent’s Chief Executive Officer or Chief Financial
Officer as of the Closing Date, and which are attached hereto as Schedule 4.2
(the cash flow projections and pro forma balance sheets being referred to as
the “Pro Formas”).

 

The financial statements referred to in clauses (a) and (b)
of the first sentence of this Section 4.2 have been prepared in
accordance with GAAP (except as otherwise noted therein and except that the
unaudited financial statements do not contain footnotes), and fairly present,
in all material respects (subject to normal year year-end audit adjustments),
the respective financial condition of AMHC, AMGI and all of its Subsidiaries,
on a consolidated basis, and Kenan and all of its Subsidiaries, on a
consolidated basis, as of the respective dates indicated therein and the
respective results of the operations of AMHC, AMGI and all of its Subsidiaries,
on a consolidated basis, and Kenan and all of its Subsidiaries, on a
consolidated basis, for the respective periods indicated therein.  The cash flow projections and analyses
referred to in clause (c) of the first sentence of this Section 4.2
reflect the reasonable estimates of the Company of the information projected
therein, based on the assumptions accompanying such projections which while
subject to changing conditions beyond the Company’s control are reasonable
assumptions (a) predicated on historical, financial and operating results of
AMHC, AMGI and all of its Subsidiaries and Kenan and all of its Subsidiaries
and (b) in light of reasonably foreseeable business conditions.  The pro forma balance sheets described in clause
(d) of the first sentence of this Section 4.2 are, to Knowledge
of the Company, complete and accurate in all material respects and fairly
present in all material respects each of the Credit Parties’ assets,
liabilities and financial condition, on a consolidated basis as described
above, as of March 31, 2001, but taking into account the transactions
contemplated as of the Closing Date by this Agreement, the Acquisition
Documents and the Senior Loan Agreement and those contemplated as of the
Closing Date under the Other Agreements. 
To the Knowledge of the Company, there are no omissions from the Pro
Formas or other facts and circumstances not reflected in the Pro Formas which
are or could reasonably be anticipated to be material.  Except as set forth on Schedule 4.2,
at March 31, 2001, no Credit Party had liabilities or obligations
(absolute, accrued, contingent or otherwise) of a nature required by GAAP to be
reflected in such financial statements which are, individually or in the
aggregate, material to the condition, financial or otherwise, or operations of
the Credit Parties as of that date which are not reflected on such financial
statements.  There has been no material
adverse change in the condition, financial or otherwise, or operations of AMHC,
AMGI and its Subsidiaries, taken as a whole, or Kenan and its Subsidiaries,
taken as a whole, any subsidiary since December 31, 2000, nor has there
otherwise occurred a Material Adverse Effect, except as disclosed on Schedule 4.2.

 

4.3                                 Default.  Except as disclosed on Schedule 4.3,
no Credit Party is in breach of any material term or provision of any loan
agreement, indenture, mortgage or security agreement, or any material lease,
franchise, permit, license or other agreement or obligation to which it is a
party or by which any of its properties may be bound.  Each Credit Party is paying its debts as they become due.

 

11

 

4.4                                 Authorization
and Compliance with Laws and Material Agreements.  The execution, delivery and performance by
(a) the Credit Parties (other than Kenan) of this Agreement, the Acquisition
Documents, the Senior Loan Documents and the Other Agreements to which it is or
may in connection with the transactions contemplated hereby become a party, and
(b) Kenan of the Kenan Merger Agreement, have been or prior to the consummation
of such transactions will be duly authorized by all requisite action on the
part of the Credit Parties and do not and will not violate the respective
Articles/Certificate of Incorporation or Bylaws of each of the Credit Parties
or any law or any order of any court, governmental authority or arbitrator, and
do not and will not upon the consummation of the transactions contemplated
hereby conflict with, result in a breach of, or constitute a default under, or
result in the imposition of any Lien (except Permitted Liens) upon any assets
of the Credit Parties pursuant to the provisions of any loan agreement,
indenture, mortgage, security agreement, franchise, permit, license or other
instrument or agreement by which the Credit Parties or any of their respective
properties is bound.  Except as set forth
on Schedule 4.4, no authorization, approval or consent of, and no
filing or registration with, any court, governmental authority or third Person
is or will be necessary for the execution, delivery or performance by the
Credit Parties of this Agreement, the Acquisition Documents, the Senior Loan
Documents and the Other Agreements to which they are a party or the validity or
enforceability thereof.  Except as set
forth on Schedule 4.4, all such authorizations, approvals,
consents, filings and registrations described in Schedule 4.4 have,
or prior to Closing Date will have, been obtained.  No Credit Party is in violation of (i) any term of its
Articles/Certificate of Incorporation or Bylaws, or (ii) any judgment or
decree, or (iii) any material term or condition of any material contract
or agreement, and each Credit Party is in full compliance in all material
respects with all applicable laws, regulations and rules.

 

4.5                                 Environmental
Condition of the Property. 
Except as disclosed on Schedule 4.5:

 

(a)                                  With respect to
permits and licenses, (i) all material licenses, permits, consents or
other approvals required under Environmental Laws that are necessary to the
operations of the business of the Credit Parties have been obtained and, to the
extent material, are in full force and effect and are listed on the attached Schedule 4.5,
and no Credit Party is aware of any Basis for revocation or suspension of any
such licenses, permits, consents or other approvals; (ii) to the Knowledge
of the Company, and except for notices, modifications or amendments required to
be filed with the appropriate Governmental Entity to reflect such change in
ownership or control, which are disclosed on Schedule 4.5, as a
result of the Kenan Acquisition Transaction and the Advantage Acquisition
Transaction, and except for notices, modifications or amendments required to be
filed with the appropriate Governmental Entity to reflect change in ownership
or control, no Environmental Law imposes any obligation upon the Credit
Parties, as a result of any transaction contemplated hereby, requiring prior
notification to any Governmental Entity of the transfer of any permit, license,
consent or other approval which is necessary to the operations of the business
of the Credit Parties; and (iii) all of the facilities and operations of
the business of the Credit Parties have been operated, in all material
respects, in accordance with the permits, licenses, consents or approvals of
the Credit Parties and within the production levels or emission levels specified
in such permits, licenses, consents or approvals.

 

12

 

(b)                                 Each of the Credit
Parties is in compliance in all material respects, and has at all times
operated its business in compliance in all material respects, with all
applicable limitations, restrictions, conditions, standards, prohibitions,
requirements and obligations of Environmental Laws.  To the Knowledge of the Company, no incident has occurred that was
required to be reported by the Credit Parties to a Governmental Entity under
any Environmental Law that has not been reported.  During the three years prior to the date of this Agreement, no
Governmental Entity has issued any citation, notice of violation or other
enforcement action against the Credit Parties, except enforcement actions that
have been finally resolved in a manner that will not require the expenditure of
funds by the Credit Parties subsequent to the Closing Date of more than
$100,000.

 

(c)                                  There are not any
existing, pending or, to the Knowledge of the Company, threatened actions,
suits, claims, inquiries or proceedings or, to the Knowledge of the Company,
investigations by or before any court or any other Governmental Entity directed
against the Credit Parties in connection with the operation of their business
which related to (i) any Contamination, (ii) violations by the Credit
Parties of any Environmental Law, (iii) personal injury or property damage
claims relating to a release of Hazardous Materials by the Credit Parties, or (iv) response,
removal or remedial costs or natural resource damages under the Comprehensive
Environmental Response, Compensation, and Liability Act or any similar state
law. No Credit Party has, since January 1, 1995, received from any Governmental
Entity or other person a request for information about any site where a
Hazardous Material has been Released or any notice that any of them has been
named as a responsible or potentially responsible party with respect to any
Contamination.

 

(d)                                 No portion of the real
property currently, or to the Knowledge of the Company, previously, owned,
leased, occupied or controlled by the Credit Parties with respect to their
businesses is listed on any Contaminated Site List.

 

(e)                                  To the Knowledge of
the Company, no Contamination exists on or with respect to any property
currently owned by the Credit Parties.

 

(f)                                    There are no
underground storage tanks (including tanks that are exempt from regulation) for
Hazardous Materials or petroleum, active or, to the Knowledge of the Company,
abandoned, at any property now owned or leased by the Credit Parties.

 

(g)                                 The Company has
provided to or allowed inspection of by Purchasers all engineering, geologic,
environmental and other documents, reports, studies or maps prepared for the benefit
of, or in the possession of the Credit Parties relating to (i) any
Contamination existing on any real property owned or leased by the Credit
Parties, or (ii) any violations by the Credit Parties of any Environmental
Laws.

 

(h)                                 All Hazardous
Materials generated by the Credit Parties in their business have been handled
by the Credit Parties in compliance in all material respects with Environmental
Laws.

 

13

 

(i)                                     With respect to
property not currently owned by the Credit Parties, to the Knowledge of the
Company, (i) no act or omission of the Credit Parties has resulted in
Contamination on such property, (ii) no Credit Party has transported or
arranged for the transportation of a Hazardous Material to, or arranged for the
disposal or treatment of a Hazardous Material at, property that is
Contaminated, (iii) no Contamination has migrated from a property owned by
any of the Credit Parties to any such unowned property and (iv) no Credit
Party is otherwise liable for Contamination at any such unowned property.

 

(j)                                     The Credit Parties
have current environmental insurance policies in place in the amounts described
on Schedule 4.5.

 

4.6                                 Solvency.  No Credit Party is entering into the
arrangements contemplated by this Agreement and the Other Agreements with the
actual intent to hinder, delay or defraud either present or future
creditors.  After giving effect to the
transactions contemplated by the Senior Loan Agreement, this Agreement, the
Kenan Acquisition Agreement, the Advantage Acquisition Agreement and the Other
Agreements, each of the Credit Parties taken as a whole will be solvent, able
to pay their debts as they mature, have capital sufficient to carry on their
business and all businesses in which they are about to engage, and

 

(a)                                  the assets of the
Credit Parties, taken as a whole, at a fair valuation, exceed the total
liabilities (including contingent, subordinated, unmatured and unliquidated
liabilities) of the Credit Parties;

 

(b)                                 current projections
which are based on underlying assumptions which provide a reasonable basis for
the projections and which reflect the Credit Parties’ judgment based on present
circumstances, the most likely set of conditions and the Credit Parties’ most
likely course of action for the period projected, demonstrate that the Credit
Parties taken as a whole will have sufficient cash flow to enable them to pay
their debts as they mature; and

 

(c)                                  the Credit Parties
taken as a whole do not have an unreasonably small capital base with which to
engage in their anticipated business.

 

For purposes of paragraph (a) of this Section 4.6,
the “fair valuation” of the assets of the Credit Parties shall be determined on
the basis of the amount which may be realized within a reasonable time, either through
collection or sale of such assets at market value, deeming the latter as the
amount which could be obtained for the property in question within such period
by a capable and diligent businessman from an interested buyer who is willing
to purchase under ordinary selling conditions.

 

4.7                                 Litigation and
Judgments.  Except as
disclosed on Schedule 4.7, there is no action, suit, proceeding or,
to the Knowledge of the Company, investigation before any court, governmental
authority or arbitrator pending, or to the Knowledge of the Company threatened,
against or materially adversely affecting the Credit Parties, this Agreement,
the Acquisition Documents, the Senior Loan Documents and/or the Other
Agreements.  Except as disclosed on

 

14

 

Schedule 4.7, there are no outstanding
judgments against the Credit Parties. 
None of the matters listed on Schedule 4.7 could reasonably
be expected to have, either individually or in the aggregate, a Material
Adverse Effect.

 

4.8                                 Rights in
Properties; Liens.  Each of
the Credit Parties has good and indefeasible title to all properties and assets
reflected on its balance sheets, and none of such properties or assets is
subject to any Liens, except Permitted Liens. 
Each of the Credit Parties enjoys peaceful and undisturbed possession
under all leases necessary for the operation of its other properties, assets,
and businesses and all such leases are valid and subsisting and are in full
force and effect.  There exists no
default under any provision of any lease which would permit the lessor
thereunder to terminate any such lease or to exercise any rights under such
lease which, individually or together with all other such defaults, would have
a Material Adverse Effect.  Each of the
Credit Parties has the right to use all of the Intellectual Property material
to its business as presently conducted and such corporation’s use of the
Intellectual Property does not infringe the rights of any other Person in any
material respect.  To the Knowledge of
the Company, no other person is infringing the rights of the Credit Parties, in
any of the Intellectual Property, except as stated on Schedule 4.8.
The Credit Parties own or possess all licenses, permits, franchises,
authorizations, patents, patent applications, copyrights, service marks,
trademarks and trade names, or rights thereto, that individually or in the
aggregate are material to its business as presently conducted, without known
conflict with the rights of others; to the Knowledge of the Company, no such
license or trademark has been declared invalid, been limited by order of any
governmental authority or by agreement, or is the subject of any infringement,
interference or similar proceeding or challenge; to the Knowledge of the
Company, no product of the Credit Parties infringes in any material respect any
license, permit, franchise, authorization, patent, copyright, service mark,
trademark, trade name or other right owned by any other Person; and to the
Knowledge of the Company, there is no material violation by any Person of any
right of the Credit Parties with respect to any patent, patent applications,
copyright, service mark, trademark, trade name or other right owned or used by
the Credit Parties.  No Credit Party
owes any royalties, honoraria or fees to any Person by reason of its use of the
Intellectual Property, except as stated on Schedule 4.8.

 

4.9                                 Enforceability.  This Agreement, the Acquisition Documents,
the Senior Loan Documents and the Other Agreements to which any of the Credit
Parties is a party, when delivered, shall constitute the legal, valid and
binding obligations of the Company and such Subsidiary enforceable against the
Credit Parties in accordance with their respective terms.

 

4.10                           Indebtedness.  After giving effect to the transactions
contemplated by this Agreement, the Acquisition Documents and the Senior Loan
Documents, no Credit Party has any Indebtedness, except Permitted
Indebtedness.  There is no Indebtedness
owed by Credit Parties to any Affiliate.

 

4.11                           Taxes.  Each of the Credit Parties have filed all
tax returns (federal, state, and local) required to be filed, including,
without limitation, all income, franchise, employment, property, and sales
taxes, and has paid all of its tax liabilities, other than immaterial amounts
and taxes that are being contested by such corporation in good faith by
appropriate proceedings and with respect to which adequate reserves in
accordance with GAAP have been provided for on the

 

15

 

Credit Parties’ books.  The
Company knows of no pending investigation of the Credit Parties’ by any taxing
authority or pending but unassessed tax liability of Credit Parties.  Except as set forth on Schedule 4.11,
no Credit Party has made any presently effective waiver of any applicable
statute of limitations or request for an extension of time to file a tax
return, and neither is a party to any tax-sharing agreement.

 

4.12                           Use
of Proceeds; Margin Securities. 
No Credit Party is engaged principally, or as one of its important
activities, in the business of extending credit for the purpose of purchasing
or carrying margin stock (within the meaning of Regulations U or X of the Board
of Governors of the Federal Reserve System), and no part of the proceeds of any
extension of credit under this Agreement will be used to purchase or carry any
such margin stock or to extend credit to others for the purpose of purchasing
or carrying margin stock.  No Credit
Party nor any Person acting on its behalf has taken any action that might cause
the transactions contemplated by this Agreement, the Acquisition Documents, the
Senior Loan Documents or any Other Agreements to violate Regulations U or X or
to violate the Securities Exchange Act of 1934, as amended.

 

4.13                           Employee
and Labor Matters and Plans.

 

(a) Neither a Reportable Event nor an “accumulated funding deficiency”
(within the meaning of Section 412 of the Code or Section 302 of
ERISA) has occurred during the five-year period prior to the Closing Date with
respect to any Plan, and each Plan has complied in all material respects with
the applicable provisions of ERISA and the Code.  No termination of a Single Employer Plan has occurred, and no
Lien in favor of the PBGC or a Plan has arisen, during such five-year period.  The present value of all accrued benefits
under each Single Employer Plan (based on those assumptions used to fund such
Plans) did not, as of the last annual valuation date prior to the Closing Date,
exceed the value of the assets of such Plan allocable to such accrued
benefits.  Neither the Company nor any
Commonly Controlled Entity has had a complete or partial withdrawal from any
Multiemployer Plan, and neither the Company nor any Commonly Controlled Entity
would become subject to any liability under ERISA if the Company or any such
Commonly Controlled Entity were to withdraw completely from all Multiemployer
Plans as of the valuation date most closely preceding the Closing Date.  No such Multiemployer Plan is in
Reorganization or Insolvent.  As of the
Closing Date, no Credit Party maintains a Multiemployer Plan with in the
meaning of Section 3(37) of ERISA or a defined pension benefit plan.

 

(b)                                 The present value
(determined using actuarial and other assumptions which are reasonable in
respect of the benefits provided and the employees participating) of any
material liability of the Company and each Commonly Controlled Entity for post
retirement benefits to be provided to their current and former employees under
Plans which are welfare benefit plans (as defined in Section 3(1)  of
ERISA) does not, in the aggregate, exceed the assets under all such Plans
allocable to such benefits, except as set forth on Schedule 4.13.

 

(c)                                  Except as may be
required under Section 4980B of the Code or any similar state law
requiring continuous coverage with respect to health plans and as

 

16

 

provided in the Employment Agreements, to the Knowledge of the Company,
no Credit Party maintains, contributes to or is obligated under any plan,
contract, policy or arrangement providing health or death benefits (whether or
not insured) to current or former employees or other personnel beyond the
termination of their employment or other services. Except as set forth in Schedule 4.13
and except as limited by law, each Plan, which exceeds $100,000 with respect to
any employee and $500,000 in the aggregate, may be unilaterally terminated
and/or amended by the Company or a Commonly Controlled Entity at any time.

 

(d)                                 To the Knowledge of
the Company, except as set forth on Schedule 4.13 the consummation
of the transactions contemplated by this Agreement will not (either alone or in
conjunction with another event, such as a termination of employment or other
services) entitle any employee or other person to receive severance or other
compensation which would not otherwise be payable absent the consummation of
the transactions contemplated by this Agreement or cause the acceleration of
the time of payment or vesting of any award or entitlement under any Plan.

 

4.14                           Delivery
of Acquisition Documents, Management Options, Contingent Options and Employment
Agreements.  Purchasers have
received complete copies of the Acquisition Documents, the Management Options,
the Contingent Options and the Employment Agreements executed as of the Closing
Date and all documents executed in connection therewith (including all
exhibits, schedules and disclosure letters referred to therein or delivered
pursuant thereto, if any) and all amendments thereto, waivers relating thereto
and other side letters or agreements affecting the terms thereof.  None of such documents and agreements has
been amended or supplemented, nor have any of the provisions thereof been
waived, except pursuant to a written agreement or instrument which has
heretofore been delivered to Purchasers.

 

4.15                           Disclosure.  No representation or warranty made by the
Credit Parties in the Senior Loan Documents, the Acquisition Documents or any
Other Agreement to which any Credit Party is a party contains any untrue
statement of a material fact or omits to state any material fact necessary to
make the statements herein or therein not misleading.  There is no fact known to any Credit Party which any Credit Party
has determined has a Material Adverse Effect, or which any Credit Party has
determined could reasonably be anticipated to in the future (other than facts
relating to the economy generally) have a Material Adverse Effect, that has not
been disclosed in writing to Purchasers. 
Except for the Management Agreement, the Stockholders’ Agreement, the
Registration Rights Agreement, the Employment Agreements, the Contingent
Options, the Management Options, the Lease, and the agreements disclosed on Schedule 4.15,
no officer, director, or Affiliate of any Credit Party, or any owner of 5% or
more of Parent stock (other than Purchasers), or any individual related by
common ancestry, marriage or adoption to any such individual or any entity in
which any such Persons or individuals collectively own any beneficial interest
in excess of 10% (other than Purchasers), is a party to any agreement,
contract, commitment or transaction with any Credit Party or has any material
interest in any material property used by any Credit Party (each an “Affiliate
Transaction”).  The Affiliate
Transactions disclosed on Schedule 4.15 are on terms which are fair
and reasonable and are as least as favorable as would result in a comparable
arms-length transaction with any Person that is not described in the preceding
sentence.

 

17

 

4.16                           Subsidiaries
and Capitalization.  The
Company has no Subsidiaries except as described in Schedule 4.16.  All the issued and outstanding shares of
capital stock of each Credit Party are duly authorized, validly issued, fully
paid and nonassessable.  The
capitalization, and the identity of the holders (and respective holdings) of
all of the issued and outstanding capital stock of each Credit Party, both
prior to, except with respect to Kenan, and after the Closing Date, after
giving effect to the transactions contemplated by the Acquisition Documents to
be consummated on such date, and the amounts of each on an outstanding basis
and a fully-diluted basis, are set forth on Schedule 4.16.  No violation of any preemptive rights of
shareholders of any of the Credit Parties has occurred by virtue of the
transactions contemplated under this Agreement, the Acquisition Documents, the
Senior Loan Documents or any Other Agreement. 
There are no outstanding contracts, options, warrants, instruments,
documents or agreements binding upon any of the Credit Parties granting to any
Person or group of Persons any right to purchase or acquire shares of any of
the Credit Parties’ capital stock, except for those listed on Schedule 4.16.

 

4.17                           Current
Locations.  Schedule 4.17
identifies each Credit Party’s principal place of business and chief executive
office, all the locations where each Credit Party maintains any books or
records relating to any of its assets, all other locations where each Credit
Party has a place of business, and each address where any of the Credit
Parties’ assets are located.  Schedule 4.17
accurately indicates whether each such location is owned or leased, and, if
leased, identifies the owner of such location. 
No Person other than the Credit Parties have possession of any material
amount of the assets of the Credit Parties except as disclosed on Schedule 4.17.

 

4.18                           Investment Company Act.  No Credit Party is an “investment company”
or a company controlled by an “investment company” within the meaning of the
Investment Company Act of 1940, as amended.

 

4.19                           Public
Utility Holding Company Act. 
No Credit Party is a “holding company” or a “subsidiary company” of a
“holding company” or an “affiliate” of a “holding company” or a “public
utility” within the meaning of the Public Utility Holding Company Act of 1935,
as amended.

 

4.20                           No Burdensome
Restrictions.  No Credit
Party is a party to, or bound by any agreement, condition, contract or
arrangement which has, or which the Credit Parties reasonably expect in the
future will have, a Material Adverse Effect.

 

4.21                           Securities
Laws.  Based in part upon the
representations and warranties of Purchasers contained in Article III,
the Company has complied with or is exempt from the registration and/or
qualification requirements of all federal and state securities or blue sky laws
applicable to the issuance or sale of the Senior Subordinated Notes.

 

4.22                           No
Labor Disputes.  No Credit
Party is involved in any labor dispute. 
Except as set forth on Schedule 4.22, there are no strikes
or walkouts or union organization of any of the Credit Parties’ employees in
existence or to the Knowledge of the Company threatened and there are no labor
contracts other than the Employment Agreements.  Each Credit Party is in

 

18

 

compliance with all laws, rules, regulations, orders and decrees
applicable to such Credit Party or its properties, except for instances of
noncompliance which, individually or in the aggregate, will not have a Material
Adverse Effect.

 

4.23                           Brokers.  No Credit Party nor any of their respective
shareholders has dealt with any broker, finder, commission agent or other
Person in connection with the Advantage Acquisition Transaction or the Kenan
Acquisition Transaction or other transactions referenced in or contemplated by
this Agreement, nor is any Credit Party or any of their respective shareholders
under any obligation to pay any broker’s fee or commission in connection with
such transactions, except as set forth on Schedule 4.23.

 

4.24                           Insurance.  The amount and types of insurance carried by
the Credit Parties, and the terms and conditions thereof, are sufficient to
provide the Credit Parties with the level of coverage required by law.  Schedule 4.24 lists the
insurance policies and types of coverage maintained by the Credit Parties.

 

4.25                           Conduct
of Business.  On the Closing
Date, each Credit Party is engaged only in businesses of the type described in Schedule 4.25.

 

4.26                           RSTW
1998 Note and RSTW 2000 Note. The Company issued the RSTW 1998 Note
to RSTW on December 31, 1998, and the unpaid principal balance thereof
outstanding on the date hereof is $12,000,000 plus accrued unpaid interest. The
Company issued the RSTW 2000 Note to RSTW on September 25, 2000, and the
unpaid principal balance thereof outstanding on the date hereof is $1,250,000
plus accrued unpaid interest.

 

V.                                    CONDITIONS
PRECEDENT TO OBLIGATIONS OF PURCHASERS

 

Purchasers’ obligations hereunder shall be subject to (a) the
performance by the Company of its obligations hereunder which by the terms
hereof are to be performed at or prior to delivery of the Senior Subordinated
Notes, and (b) the satisfaction of the following conditions on or before the
Closing Date:

 

5.1                                 Effectiveness
of Senior Loan Documents. 
The Senior Loan Documents shall have been duly executed and delivered by
the parties thereto and shall be on terms and conditions satisfactory to
Purchasers (without limiting the foregoing, the scheduled amortization of the
Term Loans shall not exceed $5,000,000 during the 12 month period immediately
following the Closing Date under any circumstances, whether as the result of
market-flex provisions in the Senior Loan Agreement or otherwise).  All conditions precedent to the making of
the Revolving Credit Loans and the Term Loans shall have been satisfied or
waived by the Senior Lender.

 

5.2                                 Effectiveness
of Subordination Agreements. 
(a) The Senior Subordination Agreement shall have been duly executed and
delivered by Purchasers and the Senior Lender, and shall be on terms and
conditions which are satisfactory to Purchasers; and (b) the Seller
Subordination Agreement shall have been duly executed and delivered by
Purchasers and the Sellers, and shall be on terms and conditions which are
satisfactory to Purchasers.

 

19

 

5.3                                 Minimum
Availability.  The Company
shall have available cash and immediately accessible availability under the
Revolving Credit Loans and the Term Loans in an amount equal to not less than
$8,000,000 on the Closing Date after giving affect to the payment of (i) prior
indebtedness contemplated to be paid at the Closing Date, (ii) all fees payable
to Purchasers under the terms of this Agreement, and (iii) all costs and
expenses arising as a result of the transactions contemplated by this
Agreement, the Acquisition Documents, the Senior Loan Documents and any Other
Agreement to which any Credit Party is a party, and Purchasers shall have
received satisfactory evidence thereof.

 

5.4                                 Stockholders
Equity.  The Parent shall
have received a cash equity capital contribution of not less than $24,000,000
from RFE, Sterling, the Purchasers and certain other investors reasonably
acceptable to Purchasers and an equity contribution in kind of approximately
$1,676,000 which shall have been contributed by the executive management
members of Kenan in exchange for Preferred Stock, and Purchasers shall have
received satisfactory evidence thereof and shall have been satisfied with the
form of such contribution.  RSTW and the
MassMutual Investors shall have entered into the Stockholders’ Agreement
pursuant to which RSTW shall have purchased approximately $2,200,000 of
Preferred Stock and the MassMutual Investors shall have purchased approximately
$2,200,000 of Preferred Stock.

 

5.5                                 Acquisition.  The Acquisition Documents shall have been
duly executed and delivered by the parties thereto, all conditions to the
consummation of the Kenan Acquisition Transaction and the Advantage Acquisition
Transaction shall have been satisfied or waived with Purchasers’ consent, and
the terms and provisions of the Acquisition Documents and the structure of the
Advantage Acquisition Transaction and the Kenan Acquisition Transaction shall
be satisfactory to Purchasers and all of the transactions contemplated thereby
shall have been consummated other than, in the case of the Kenan Acquisition
Transaction, the filing of the Plan of Merger with the Secretary of State of
the State of North Carolina (which shall be consummated simultaneously with
this Agreement). With respect to the Kenan Acquisition Transaction, the per
share consideration shall be no greater than $35.00 per share.

 

5.6                                 [Intentionally
Omitted.]

 

5.7                                 No Litigation; Consummation of
Transactions.  No injunction,
preliminary injunction, or temporary restraining order shall be threatened or
shall exist which prohibits or may prohibit the transactions contemplated
herein or any other related transaction, and no litigation or similar
proceeding (including, without limitation, any litigation or other proceeding
seeking injunctive or similar relief) shall be threatened or shall exist with
respect to the transactions contemplated herein, which, if adversely
determined, would in the judgment of Purchasers have a Material Adverse Effect.

 

5.9                                 Documents.  Purchasers shall have received the
following, each in form and substance satisfactory to Purchasers:

 

(a)                                  Senior
Subordinated Notes.  The Senior
Subordinated Notes issued in the name of the appropriate Purchaser duly
executed by the Company;

 

20

 

(b)                                 Warrant and Warrant
Documents.  The Warrants, duly
issued by the Parent to Purchasers in the denomination specified on Annex I
hereto, along with the fully executed Warrant Documents and all other documents
and instruments required pursuant thereto together with evidence satisfactory
to Purchasers that all conditions to the obligations of Purchasers thereunder
have been satisfied in full or waived by Purchasers;

 

(c)                                  Put Guaranty.  The Put Guaranty duly executed by AMHC,
AMGI, KTC and the Subsidiaries, in form and substance satisfactory to
Purchasers;

 

(d)                                 Intentionally
Omitted;

 

(e)                                  Agreement
Regarding Certain Put Option Actions. 
Written agreement by Sterling Investment Partners, L.P. and RFE
Investment Partners in favor of the Purchasers pursuant to which Sterling
Investment Partners, L.P., and RFE Investment Partners agree to comply with,
and use their reasonable best efforts to cause the Company and its Subsidiaries
to comply with, the obligations described in Section 2.10.3(c) of
the Warrant Purchase Agreement;

 

(f)                                    Insurance.  Certified copies of all insurance policies
and endorsements thereto required by Section 6.13;

 

(g)                                 Approvals and
Consents.  Copies, certified by the
Company, of all consents, authorizations, filings, licenses and approvals, if
any, required in connection with the consummation of the Advantage Acquisition
Transaction and the Kenan Acquisition Transaction, the execution, delivery and
performance by the Credit Parties, or the validity and enforceability of, this
Agreement, the Senior Loan Documents, the Acquisition Documents or the Other
Agreements to which the Company is a party;

 

(h)                                 Opinion of Counsel
to the Company.  The written legal
opinions of Buckingham, Doolittle & Burroughs LLP, counsel to the Company,
Fulbright & Jaworski L.L.P., special New York counsel to the Company, and
Smith, Helms, Mullis & Moore, LLP, special North Carolina counsel to the
Company, such opinions to be substantially in the form of Exhibit B hereto;

 

(i)                                     General
Certificate of each Credit Party’s (except Kenan and PCT) Secretary.  A certificate of the Secretary of each of
the Credit Parties (except Kenan and PCT) together with true and correct copies
of the following:

 

(A)                              Articles of
Incorporation.  The Articles of
Incorporation of such corporation, including all amendments thereto, certified
by the Secretary of State of the state of its incorporation and dated within 30
days prior to the Closing Date;

 

21

 

(B)                                Bylaws.  The Bylaws of such corporation, including
all amendments thereto;

 

(C)                                Resolutions.  The resolutions of the Board of Directors of
such corporation authorizing the execution, delivery and performance of the
Acquisition Documents and the Other Agreements to which such corporation is a
party;

 

(D)                               Existence and Good
Standing Certificates.  Certificates
of the appropriate government officials of the state of incorporation of such
corporation as to its existence and good standing, and certificates of the
appropriate government officials in each state where such corporation does
business and where failure to qualify as a foreign corporation would have a
Material Adverse Effect, as to its good standing and due qualification to do
business in such state, each dated within 30 days prior to the Closing Date;
and

 

(j)                                     Senior Loan
Documents.  Copies of the Senior
Loan Documents and each document relating thereto, and a certificate of the
Chief Executive Officer of the Parent certifying that the attached documents
are a true, correct and complete set of the Senior Loan Documents, that all
conditions precedent to funding of the Revolving Credit Loans and the Term
Loans have been met or waived, and that those transactions are being
consummated simultaneously with the sale of the Senior Subordinated Notes;

 

(k)                                  Solvency
Certificate.  A certificate
regarding the solvency of the Credit Parties, which includes a pro forma
balance sheet and cash flow projections and analyses for the Credit Parties,
executed by the Chief Executive Officer or the Chief Financial Officer of the
Parent;

 

(l)                                     Sources and
Uses Certificate.  A certificate
executed by the Chief Executive Officer or the Chief Financial Officer of the
Parent, setting forth in reasonable detail the sources and uses of funds in the
transactions contemplated herein, in the Senior Loan Documents and in the Other
Agreements;

 

(m)                               Transaction
Certificate.  A certificate of the
Chief Executive Officer or the Chief Financial Officer of the Company that, to
his Knowledge, all conditions precedent to the effectiveness of this Agreement
have been satisfied or waived;

 

(n)                                 [Intentionally
Omitted];

 

(o)                                 Employment
Agreements.  A copy of each
Employment Agreement entered into on the Closing Date, in form and substance
satisfactory to Purchasers;

 

(p)                                 Management
Agreement.  A certified copy of the
Management Agreement, duly executed by the parties thereto and in form and
substance satisfactory to Purchasers;

 

22

 

(q)                                 Contingent Options
and Management Options.  A certified
copy of the agreements granting the Contingent Options and with respect to the
Management Options, a copy of (i) the Amended and Restated Senior Management
Option Agreement dated as of the date hereof executed by the Parent in favor of
Dennis Nash and Carl Young and (ii) the plan, if such plan exists, and form of
agreement pursuant to which all other options will be issued and a list of all
grantees thereunder (including the number of options to be issued to such
grantees and the exercise price of such options);

 

(r)                                    Other Agreements.  The Other Agreements, fully executed by the
respective parties thereto, along with all other documents and instruments
required pursuant thereto, together with evidence satisfactory to Purchasers
that all conditions to the obligations of the parties obligated thereunder have
been satisfied in full or waived;

 

(s)                                  Guaranty.  The Guaranty duly executed by each of
Parent, AMHC, NCT, ATL, McDaniel, Evalia and any other Subsidiary of the
Company and/or the Parent in favor of Purchasers for the Indebtedness of the
Company to Purchasers;

 

(t)                                    [Intentionally
Omitted.]

 

(u)                                 This Agreement.  This Agreement duly executed by Purchasers
and the Company; and

 

(v)                                 Additional
Information; Other Documents and Agreements.  Such other information, documents, agreements, commitments and
undertakings as Purchasers shall reasonably request.

 

5.10                           Material Adverse Change.  For the period from September 30, 2000,
to the Closing Date, and except for the transactions contemplated by this
Agreement and the Senior Loan Agreement there shall have been (a) no change,
event, occurrence or development which is or is reasonably likely to be
materially adverse to the business, assets, liabilities (actual or contingent),
operations or condition (financial or otherwise) of (i) Kenan and its
Subsidiaries taken as a whole, or (ii) AMGI, Kenan and their respective
Subsidiaries together taken as a whole, and (b) no occurrence or event which
would lead the Company or Purchasers to believe that the Credit Parties would
fail to meet the cash flow projections delivered to Purchasers pursuant to Section 4.2.

 

5.11                           Fees.  Closing fees and amendment/restructuring
fees in the amounts set forth in Section 1.3 hereof shall have been
paid to Purchasers.  All other fees then
payable pursuant to this Agreement (including the fees, expenses and
disbursements of the Purchasers’ counsel) shall have been paid to Purchasers
(or such counsel, as applicable).  Total
fees, including reimbursement of out-of-pocket expenses, payable at Closing
Date shall not exceed $10,000,000 (excluding any premiums paid by the Company
for any environmental insurance policies of the Company) in the aggregate, of
which not more than $875,000 in fees (excluding reimbursement of reasonable
out-of-pocket expenses) in the aggregate shall be paid to Sterling, or any
affiliate of Sterling, and not more than $875,000 in fees (excluding
reimbursement of reasonable out-of-pocket expenses) in the aggregate shall be
paid to RFE, or any affiliate of RFE.

 

23

 

5.12                           No
Event of Default.  No Event
of Default or Potential Default shall have occurred and be continuing.

 

5.13                           Representations
and Warranties.  All
representations and warranties contained in this Agreement and the Other
Agreements shall be true and correct on the Closing Date.

 

5.14                           Approvals and Consents.  All consents, authorizations, filings,
licenses, approvals and registrations described in Schedule 4.4
shall have been obtained or made, other than the filing of the Plan of Merger
with respect to the Kenan Acquisition Transaction with the Secretary of State
of the State of North Carolina (which shall be filed simultaneously with the
consummation of the transactions contemplated by this Agreement) and filings
required on the part of Parent to perform its obligations under the
Registration Rights Agreement.

 

5.15                           Maximum
Pro Forma Combined Leverage Ratio. 
On the Closing Date, the pro forma Leverage Ratio of the Credit Parties
(determined on a pro forma combined total debt and pro forma combined trailing
12 month EBITDA basis for the Credit Parties as of March 31, 2001 and as
if the transactions contemplated by the Acquisition Documents had occurred)
shall not be greater than 3.8.

 

5.16                           Environmental
Insurance Policies. 
Certified copies of all environmental insurance policies and
endorsements thereto, in form and substance, and in such amounts, covering such
risks and liabilities, and having such deductibles, exclusions and other terms
and conditions as are reasonably acceptable to the Purchasers.

 

VI.                                AFFIRMATIVE
COVENANTS

 

The Company covenants and agrees that, from the date hereof and until
the Senior Subordinated Obligations have been finally and irrevocably paid in
full in accordance with the terms hereof and the other agreements, documents
and instruments evidencing the same:

 

6.1                                 Financial
Statements.  The Company will
keep books of account and prepare financial statements and will cause to be
furnished to Purchasers (all of the foregoing and following to be kept and
prepared in accordance with GAAP):

 

(a)                                  As soon as available,
and in any event within one hundred twenty (120) days after the end of each
Fiscal Year of the Company, beginning with the Fiscal Year ending
December 31, 2001, (i) a copy of the financial statements of the Credit
Parties for such Fiscal Year containing a consolidated and consolidating
balance sheet, statement of income, statement of stockholders’ equity, and
statement of cash flows, each as at the end of such Fiscal Year and for the
Fiscal Year then ended and in each case setting forth in comparative form the
figures for the preceding Fiscal Year, along with management’s discussion and
analysis of variances, all in reasonable detail and audited and certified, in
the case of the consolidated financial statements of Parent, Ernst & Young
LLP, or another Big-Five Accounting Firm selected by the Parent and consented
to by Purchasers,

 

24

 

such consent not to be unreasonably withheld; and (ii) a comparison of
the actual results during such Fiscal Year to those originally budgeted by the
Parent prior to the beginning of such Fiscal Year (or in respect of the Fiscal
Year ended December 31, 2001, the projections for such year provided to
the Purchasers on the Closing Date) and a narrative description and explanation
of any budget variances.  The annual
audit report required by this Agreement will not be qualified by or make reference
to any disclosure that any Credit Party may not continue as a going concern or
otherwise be qualified or limited because of restricted or limited examination
by the accountant of any portion of any of the records of any Credit Party.

 

(b)                                 As soon as available,
and in any event within thirty (30) days after the end of each fiscal month, a
copy of unaudited consolidated financial statements of the Credit Parties as of
the end of such fiscal month and for the portion of the Fiscal Year then ended,
subject to year-end audit adjustments, containing a balance sheet, statement of
income, statement of retained earnings and statement of cash flows, in each
case setting forth in comparative form the figures for the corresponding period
of the preceding Fiscal Year and all in reasonable detail, including, without
limitation, a comparison of the actual results during such period to those
originally budgeted by the Parent prior to the beginning of such fiscal period
(or in respect of the Fiscal Year ended December 31, 2001, the projections
for such year provided to the Purchasers on the Closing Date) and for the
Fiscal Year to date.

 

(c)                                  On or before
January 31 of each Fiscal Year, an annual budget or business plan for such
Fiscal Year, including a projected consolidated and consolidating balance
sheet, income statement, and cash flow statement for such year and any
underlying assumptions, and, promptly during each Fiscal Year, all revisions
thereto approved by the board of directors of the Parent.

 

(d)                                 As soon as available,
copies of all final reports or letters submitted to the Company by its
independent certified public accountants in connection with each annual,
interim or special audit of the financial statements of the Parent made by such
accountants, including, without limitation, any management report, and the
Company agrees to obtain such a report in connection with each of the annual
audits.

 

6.2                                 Certificates;
Other Information.  The
Company will furnish to Purchasers all of the following:

 

(a)                                  Concurrently with the
delivery of each of the financial statements referred to in Section 6.1(a)
and Section 6.1(b), a certificate of an authorized officer of the
Company in the form of the officer’s certificate attached hereto as Exhibit
C (i) stating that no Potential Default or Event of Default has
occurred and is continuing or, if such officer has Knowledge of a Potential
Default or Event of Default, the nature thereof and specifying the steps taken
or proposed to remedy such matter, (ii) in the case of the financial
statements for the period ended March, June, September and
December of each year, showing in reasonable detail the calculations
showing compliance with Sections 6.23 and 7.11,
(iii) stating that the financial statements attached have been prepared in

 

25

 

accordance with GAAP (except that the unaudited financial statements do
not include footnotes) and fairly present in all material respects (subject to
year-end audit adjustments, for the monthly certificates) the consolidated
financial condition and results of operations of the Credit Parties at the date
and for the period indicated therein, (iv) containing summaries of accounts
receivable agings, and tractor and trailer asset counts, (v) (A) containing a schedule of
the outstanding Indebtedness for borrowed money of the Credit Parties
describing in reasonable detail each such debt issue or loan outstanding, the
name, address and telephone/fax numbers of each of the holders or lenders, as
the case may be, of such debt issue or loan outstanding and the principal
amount and amount of accrued and unpaid interest with respect to each such debt
issue or loan outstanding and (B) making a statement in respect of each thereof
similar to the statement required in clause (a)(i) above, (vi) containing
a narrative report of the business and affairs of the Credit Parties which
includes, but is not limited to, a discussion of the results of operations
compared to those originally budgeted for such period, and (vii) a report detailing
(A) all matters materially affecting the value, enforceability or
collectibility of any portion of its or any Subsidiary’s assets exceeding
$500,000, with respect to any single matter, or $1,000,000 in the aggregate,
including, without limitation, any Credit Party’s reclamation or repossession
of, or the return to any Credit Party of, a material amount of goods and
material claims or disputes asserted by any customer or other obligor of which
any Credit Party has become aware and were not disclosed to Purchasers on prior
certificates delivered to Purchasers pursuant to this Section 6.2(a),
and (B) any material adverse change in the relationship between any Credit
Party and any of its material suppliers or customers.

 

(b)                                 As soon as available,
(i) a copy of each financial statement, report, notice or proxy statement sent
by any Credit Party to its stockholders in their capacity as stockholders, (ii)
a copy of each regular, periodic or special report, registration statement, or
prospectus filed by any Credit Party with any securities exchange or the
Securities and Exchange Commission or any successor agency, and any material
order issued by any court, governmental authority, or arbitrator in any
material proceeding to which any Credit Party is a party, (iii) copies of all
press releases and other statements made available generally by any Credit
Party to the public generally concerning material developments in any Credit
Party’s business, and (iv) a copy of all correspondence and reports sent by the
Credit Parties to the Senior Lender.

 

(c)                                  Promptly, such
additional information concerning the Credit Parties, as Purchasers may
reasonably request.

 

6.3                                 Books
and Records.  The Credit
Parties shall, and shall cause each other Credit Party to, keep (a) proper
books of record and account in which full, true and correct entries will be
made of all dealings or transactions of or in relation to its business and
affairs; (b) set up on its books accruals with respect to all taxes,
assessments, charges, levies and claims; and (c) on a reasonably current
basis set up on its books from its earnings allowances against doubtful
receivables, advances and investments and all other proper accruals (including,
without limitation, by reason of enumeration, accruals for premiums, if any,
due on required payments and accruals for depreciation, obsolescence, or
amortization of properties), which should be set

 

26

 

aside from such earnings in connection with its business.  All determinations pursuant to this
subsection shall be made in accordance with, or as required by, GAAP
consistently applied.  Each Credit Party
will maintain a modern system of accounting established and administered in
accordance with sound business practices to permit preparation of consolidated
financial statements in conformity with GAAP.

 

6.4                                 Financial
Disclosure.  The Company
hereby irrevocably authorizes and directs all accountants and auditors employed
by it at any time during the term of this Agreement to exhibit and deliver to
Purchasers copies of any of the Credit Parties’ financial statements, trial
balances or other accounting records of any sort in the accountant’s or
auditor’s possession, and to disclose to Purchasers any information they may
have concerning the Credit Parties’ financial status and business
operations.  The Company hereby
irrevocably authorizes all federal, state and municipal authorities to furnish
to Purchasers copies of reports or examinations relating to the Credit Parties
whether made by the Credit Parties or otherwise.

 

6.5                                 Disclosure of
Material Matters.  The
Company shall, and shall cause each other Credit Party to, promptly upon
learning thereof, report to Purchasers (a) all matters materially affecting the
value, enforceability or collectibility of any portion of its assets or the
assets of any other Credit Party exceeding $500,000 with respect to any single
matter, or $1,000,000 in the aggregate, including, without limitation, any
Credit Party’s reclamation or repossession of, or the return to any Credit
Party of, a material amount of goods and material claims or disputes asserted
by any customer or other obligor, and (b) any material adverse change in the
relationship between any Credit Party, and any of their material suppliers or
customers.

 

6.6                                 Performance of
Obligations.  The Company
shall duly and punctually pay and perform its obligations under this Agreement,
the Senior Loan Documents and the Other Agreements to which it is a party.

 

6.7                                 Preservation
of Existence and Conduct of Business.  The Company shall, and shall cause each other Credit Party to,
preserve and maintain in full force and effect (i) the corporate
existence, rights and franchises of the Credit Parties, as the case may be, and
(ii) all licenses and other rights to use Intellectual Property held or
owned by Credit Parties, if any of the foregoing are reasonably necessary to
the business of any Credit Party.

 

6.8                                 Maintenance of
Properties.  The Company
shall, and shall cause each other Credit Party to, operate and maintain in good
condition and repair (ordinary wear and tear excepted) and replace as
necessary, all of the assets and properties of the Credit Parties, as the case
may be, which are necessary or useful in accordance with sound business
practices in the judgment of the Credit Parties, as the case may be, in the
proper conduct of its business.  The
Company shall, and shall cause each other Credit Party to at all times maintain
the Intellectual Property in full force and effect, and will defend and protect
the Intellectual Property against all adverse claims until such time that it is
immaterial to the Credit Parties’ business taken as a whole.

 

6.9                                 Payment of Taxes
and Claims.  The Company
shall, and shall cause each other Credit Party to, pay or discharge, at or
before maturity or before becoming delinquent (a) all taxes, levies,
assessments, water and sewer rents, rates, charges, levies, permits, inspection
and

 

27

 

license fees and other governmental and quasi-governmental charges and
any penalties or interest for nonpayment thereof, heretofore or hereafter
imposed or which may become a Lien upon any property owned by the Credit
Parties, as the case may be, or arising with respect to the occupancy, use,
possession or leasing thereof (collectively, the “Impositions”) and
(b) all lawful claims for labor, material, and supplies, which, if unpaid,
might become a Lien upon any property of the Credit Parties, as the case may
be; provided, however, that no Credit Party shall be required to
pay or discharge any claim for labor, material, or supplies or any Imposition
which is being contested in good faith by appropriate proceedings diligently
pursued, and for which adequate reserves in conformity with GAAP have been
established.

 

6.10                           Compliance with Laws.  Except as otherwise permitted pursuant to
the last sentence of this section, the Company shall, and shall cause each
other Credit Party to, comply with all acts, rules, regulations and orders of
any legislative, administrative or judicial body or official applicable to the
operation of the Credit Parties’ business the noncompliance with which would
have a Material Adverse Effect. 
However, the Credit Parties may contest or dispute any acts, rules,
regulations, orders and directions of those bodies or officials in any
reasonable manner, provided that adequate reserves with respect thereto are
established to the reasonable satisfaction of Purchasers.

 

6.11                           Payment
of Expenses.  All reasonable
costs and expenses, including, without limitation, reasonable attorneys’ fees
incurred by Purchasers in efforts made to enforce payment of any Senior
Subordinated Obligations, as well as all reasonable out-of-pocket and direct
costs and expenses, including reasonable attorneys’ fees and legal expenses,
incurred in connection with entering into, modifying, administering and/or
enforcing this Agreement and all related agreements, documents and instruments
and/or in defending or prosecuting any actions or proceedings arising out of or
relating to Purchasers’ transactions with any Credit Party, or any advice given
to Purchasers with respect to its rights and obligations under this Agreement,
the Senior Subordination Agreement or any Other Agreements shall be payable to
Purchasers, on demand, and shall become part of the Senior Subordinated
Obligations.

 

6.12                           Payment
of Leasehold Obligations. 
The Company shall, and shall cause each other Credit Party to, at all
times pay, when and as due, rental obligations under all leases under which any
Credit Party is a tenant or lessee, and shall, and shall cause each other
Credit Party to, otherwise comply, in all material respects, with all other
terms of such leases and keep them in full force and effect and, at Purchasers’
request, shall provide evidence of the Credit Parties having done so.  The Credit Parties may, however, contest or
dispute their obligations under such leases, provided that adequate reserves
with respect thereto are established to the reasonable satisfaction of
Purchasers.

 

6.13                           Insurance.  The Company shall, and shall cause each
other Credit Party to, maintain, with financially sound, reputable and solvent
companies, insurance policies (a) insuring the assets of the Credit
Parties against loss by fire, explosion, theft and other risks and casualties
as the Company determines reasonably and in good faith to be prudent in light
of the risks faced in the conduct of its business, (b) insuring the Credit
Parties against liability for personal injury and property damages relating to
the assets of the Credit Parties, such policies to be in such amounts and
covering such risks and insuring such other matters as may from time to

 

28

 

time be requested by Purchasers. 
The Company shall, and shall cause each other Credit Party to, provide
copies of all general liability policies to Purchasers within ten days
following Purchasers’ request for the same. 
The Company shall, and shall cause each other Credit Party to, (i)
deliver all such policies to Purchasers immediately upon the Company’s receipt
thereof, (ii) pay, or cause to be paid, all premiums for such insurance before
such premiums become due, (iii) furnish to Purchasers satisfactory proof of the
timely making of such payments, (iv) deliver all renewal policies to Purchasers
at least five days before the expiration date of each expiring policy, (v)
cause such policies to require the insurer to give notice to Purchasers of
termination of any such policy at least 30 days before such termination is to
be effective, and (vi) immediately deliver written notice to Purchasers of any
Casualty Event.

 

6.14                           Inspection
Rights.  Upon at least five
(5) days’ notice and during business hours, the Company shall, and shall cause
each other Credit Party to, permit representatives of Purchasers to examine and
make copies of the books and records of, and visit and inspect the properties
of, the Credit Parties, and to discuss the business, operations, and financial
condition of the Credit Parties with its respective officers and employees and
with its independent certified public accountants.  In accordance with the terms of Section 6.11 hereof,
the Company will promptly reimburse Purchasers for all reasonable,
out-of-pocket expenses incurred by representatives of Purchasers in connection
with such inspections, provided that the Company shall not be required to
reimburse Purchasers for their expenses for conducting more than one inspection
in any 12 month period as long as no Default or Event of Default exists.

 

6.15                           Negative
Pledge.  Until payment and
performance in full of all of the Senior Subordinated Obligations and
termination of this Agreement, the Company shall not, and shall not permit any
other Credit Party to, without Purchasers’ prior written consent, pledge, sell
(except inventory in the ordinary course of business and as permitted by Section 6.8,
Section 6.16 and Section 7.3), assign, transfer, create
or suffer to exist any Lien (except for Permitted Liens) upon any part of the
assets of the Credit Parties.

 

6.16                           Maintenance of Equipment.  Each Credit Parties’ equipment shall be
maintained in as good and substantial repair and condition as the same is now
(reasonable wear and tear excepted) and all necessary replacements of and
repairs thereto shall be made so that the value and operating efficiency of the
equipment shall be maintained and preserved.

 

6.17                           Notices.  The Company will promptly, but in any event
within two Business Days after first becoming aware thereof, notify Purchasers
of:

 

(a)                                  the commencement of
any action, suit, or proceeding against any Credit Party that could reasonably
be anticipated to have a Material Adverse Effect;

 

(b)                                 the occurrence of a
default, or an event which with the passage of time or giving of notice or both
constitutes a default or event of default under the Senior Loan Documents, this
Agreement or under any instrument or agreement evidencing any other
Indebtedness of any Credit Party;

 

29

 

(c)                                  any other matter that
could reasonably be anticipated to have a Material Adverse Effect; and

 

(d)                                 the occurrence of a
Potential Default or an Event of Default.

 

Any notification required by this Section 6.17 shall be
accompanied by a certificate of the Chief Executive Officer or Chief Financial
Officer setting forth the details of the specified events and the action which
such Credit Party proposes to take with respect thereto.

 

6.18                           Additional
Notices.  Promptly after
receipt by a Credit Party, the Company shall provide Purchasers with copies of
all (a) notices (including notices of default), statements and financial
information, including notices of default, received from the Senior Lender
under the Senior Loan Agreement and any other creditor or lessor with respect
to the acceleration of the maturity of any item of Indebtedness for borrowed
money or the repossession of property from any Credit Party, and (b) material
information concerning the assets of any Credit Party, including, without
limitation, significant contracts, schedules of equipment, changes of equipment
or real property.

 

6.19                           Senior
Loan Document Amendments. 
The Company shall promptly provide Purchasers with copies of all
proposed amendments and executed amendments to the Senior Loan Documents and of
all other loan agreements to which any Credit Party is a party.

 

6.20                           Further
Assurances.  The Company
shall, and shall cause each other Credit Party to, execute and deliver to
Purchasers from time to time, upon demand, such supplemental agreements,
statements, assignments and transfers, or instructions or documents as
Purchasers may request, in order that the full intent of this Agreement and the
Other Agreements may be carried into effect.

 

6.21                           Compliance
with ERISA and the Code.  The
Company will comply, and will cause each Commonly Controlled Entity to comply,
with all minimum funding requirements of Section 412 of the Code or
Section 302 of ERISA, and with all other material requirements, of ERISA
and the Code, if applicable, to any Employee Benefit Plan it or they sponsor or
maintain, so as not to give rise to any material liability thereunder.  The Company will pay and will cause any
Commonly Controlled Entity to pay when due any amount payable by it to the
PBGC.  Promptly after the filing
thereof, the Company shall furnish to Purchasers with regard to each funded
Plan, copies of each annual report required to be filed pursuant to
Section 104 of ERISA in connection with each such plan for each plan year.

 

6.22                           Compliance
with Regulations U and X.  No
Credit Party nor any Person acting on its behalf will take any action which
might cause this Agreement, the Senior Subordinated Notes, the Warrant
Documents, the Senior Loan Agreement or the Other Documents to violate, and the
Credit Parties will take all actions necessary to cause compliance with,
Regulations U and X of the Board of Governors of the Federal Reserve System and
the Securities Exchange Act of 1934, in each case as now in effect or as the
same may hereafter be in effect.

 

30

 

6.23                           Financial Covenants.
Until payment and performance in full of the Senior Subordinated Obligations,
the Company shall maintain and keep in full force and effect each of the
financial covenants set forth below.

 

(a)                                  Maximum Leverage Ratio.
The Company and the other Credit Parties will at all times maintain a Leverage
Ratio of the Credit Parties as of the last day of any fiscal quarter of the
Parent ending during any test period set forth on the table below not to exceed
the ratio set forth opposite such test period below:

 

	
  Test Period

  	
   

  	
  Ratio

  
	
  Closing Date to December 30, 2001

  	
   

  	
  4.40 to 1.00

  
	
  December 31, 2001 to June 29,
  2002

  	
   

  	
  4.02 to 1.00

  
	
  June 30, 2002 to September 29,
  2002

  	
   

  	
  3.85 to 1.00

  
	
  September 30, 2002 to
  December 29, 2002

  	
   

  	
  3.69 to 1.00

  
	
  December 31, 2002 to June 29,
  2003

  	
   

  	
  3.47 to 1.00

  
	
  June 30, 2003 to September 29,
  2003

  	
   

  	
  3.14 to 1.0

  
	
  September 30, 2003 to March 30,
  2004

  	
   

  	
  3.03 to 1.0

  
	
  March 31, 2004 to June 29, 2004

  	
   

  	
  2.92 to 1.0

  
	
  June 30, 2004 to September 29,
  2005

  	
   

  	
  2.75 to 1.0

  
	
  September 30, 2005 to
  December 31, 2007

  	
   

  	
  2.48 to 1.0

  
	
  January 1, 2008 and thereafter

  	
   

  	
  2.25 to 1.0

  

 

(b)                                 Minimum Interest
Coverage. The Company and the other Credit Parties will at all times
maintain a ratio of Consolidated EBITDA to Consolidated Interest Expense for
any period of four consecutive fiscal quarters (or if less, the number of full
fiscal quarters of the Parent elapsed since the Closing Date) of the Credit
Parties ending during any test period set forth on the table below of not less
than the ratio set forth opposite such test period below:

 

	
  Test Period

  	
   

  	
  Ratio

  
	
  Closing Date to December 30, 2001

  	
   

  	
  2.12 to 1.0

  
	
  December 31, 2001 to June 29,
  2002

  	
   

  	
  2.25 to 1.0

  
	
  June 30, 2002 to December 30,
  2002

  	
   

  	
  2.39 to 1.0

  
	
  December 31, 2002 to June 29,
  2003

  	
   

  	
  2.57 to 1.0

  
	
  June 30, 2003 to December 30,
  2003

  	
   

  	
  2.70 to 1.0

  
	
  December 31, 2003 to December 30,
  2004

  	
   

  	
  2.93 to 1.0

  
	
  December 31, 2004 to December 31,
  2007

  	
   

  	
  3.15 to 1.0

  
	
  January 1, 2008 and thereafter

  	
   

  	
  3.5 to 1.0

  

 

(c)                                  Minimum
Fixed Charge Coverage.  The Company
and the other Credit Parties shall not permit the ratio of Consolidated EBITDA
for any period of four

 

31

 

consecutive fiscal quarters of the Parent (or, if
less, the number of full fiscal quarters of the Parent elapsed since the
Closing Date), ending on or after December 31, 2001, less consolidated
Capital Expenditures of the Credit Parties for such period of fiscal quarters
of the Parent to Consolidated Fixed Charges for such period of fiscal quarters of
the Parent to be less than (i) 0.90 to 1.0 for all such periods ending on or
before December 31, 2007 or (ii) 1.00 to 1.0 for all such periods ending
after December 31, 2007.

 

6.24                           Fiscal
Year.  The Credit Parties
will cause its Fiscal Year to be the twelve month period ending on the last day
of December of each year.

 

6.25                           Board Observation Rights.  The Company will, and will cause Parent to,
give the Holders actual notice of all regular meetings and all special meetings
of the Company’s and the Parent’s Boards of Directors and all committees
thereof, will permit at least one (1) person designated from time to time by
the MassMutual Investors as a whole and up to two (2) persons designated from
time to time by RSTW to attend such meetings as observers, and will provide
each Holder with all information provided to the directors of the Company
and/or the Parent. Such regular meetings will be held at least quarterly and at
least a majority of the members of Board of Directors must be present at such
meetings.  The Company will, and will
cause the Parent to, as applicable, reimburse at least one (1) person
designated from time to time by the MassMutual Investors as a whole and up to
two (2) persons designated from time to time by RSTW for reasonable
out-of-pocket expenses incurred traveling to and attending such meetings.  Each Holder agrees that such Holder and its
designees shall not disclose any confidential information obtained in
connection with this Section 6.25 to any Person (other than Persons
in a confidential relationship with such Holder) unless such Person has agreed
in writing to maintain such information confidential; provided, however,
that nothing herein shall be deemed to prevent the disclosure of any
confidential information if such disclosure is (i) required to be made in a
judicial, administrative or governmental proceeding, (ii) required by any
applicable law or regulation, (iii) made to any governmental agency or
regulatory body having or claiming authority over any aspect of such Holder’s or
its Affiliates’ businesses in connection with the exercise of such authority or
claimed authority, (iv) subject to subpoena, (v) made on a confidential basis
as such Holder deems reasonably necessary or appropriate to any of its
investors, any bank or financial institution and/or counsel to or other
representatives of such investors, bank or financial institution, or (vi) made
to any proposed future purchaser of any Senior Subordinated Notes or Warrant; provided,
that, such proposed purchaser executes a confidentiality agreement in
favor of the Company or the Parent, as applicable.

 

6.26                           Environmental Costs.

 

(a)                                  The Company hereby
indemnifies and holds Purchasers harmless from and against any liability, loss
(other than that portion of any loss attributable solely to the decline in
value of any rights under any warrants or any put rights pertaining thereto),
damage, suit, action or proceeding that relates to the Credit Parties
pertaining to solid or hazardous waste materials or other waste-like or toxic
substances, including, but not limited to, claims of any federal, state or
municipal government or quasi-governmental agency or any third person, whether
arising under any federal, state or municipal law or regulation, or tort,
contract or common law.

 

32

 

(b)                                 To the extent the laws
of the United States or any state in which property, leased or owned, of any
Credit Party provide that a Lien upon the property of any Credit Party may be
obtained for the removal of Polluting Substances which have been or may be
released, no later than 90 days after notice is given by Purchasers to the
Company, the Company shall deliver to Purchasers a report issued by a
qualified, third party engineer certifying as to the existence of any Polluting
Substances located upon or beneath the specified property, leased or
owned.  To the extent any such Polluting
Substance is located therein or thereunder that either (i) subjects the
property to Lien or (ii) requires removal to safeguard the health of any
Person, the Company shall remove, or cause to be removed, such Lien and such
Polluting Substance at the Company’s expense.

 

6.27                           Communication
with Accountants.  The
Company will deliver and cause each other Credit Party to deliver to the
Purchasers a copy of a letter from each such corporation addressed to its
accountants authorizing such accountants to disclose to Purchasers any and all
financial information concerning the Credit Parties, requested by Purchasers in
determining compliance with any of the financial covenants contained in this Article VI
and Article VII hereof.

 

6.28                           Guaranty.  The Company shall cause PCT to execute a
Guaranty and a Put Guaranty immediately following the consummation of the Kenan
Merger.  In addition, the Company shall
cause each of its Subsidiaries, AMHC, the Parent and each other Subsidiary of
the Parent to execute a guaranty in favor of Purchasers for the Senior
Subordinated Obligations from time to time owing from the Company to
Purchasers, including, without limitation, Subsidiaries formed or acquired
after the Closing Date, such guaranties to be in the form and substance of the
Guaranty.

 

6.29                           General
Certificate of Kenan’s and PCT’s Secretary.  The Company shall provide a certificate of
the Secretary of each of Kenan and PCT (immediately following the consummation
of the Kenan Merger) together with true and correct copies of the following:

 

(A)                              Articles of
Incorporation.  The Articles of
Incorporation of such corporation, including all amendments thereto, certified
by the Secretary of State of the state of its incorporation and dated within 30
days prior to the Closing Date;

 

(B)                                Bylaws.  The Bylaws of such corporation, including
all amendments thereto;

 

(C)                                Resolutions.  The resolutions of the Board of Directors of
such corporation authorizing the execution, delivery and performance of the
Acquisition Documents and the Other Agreements to which such corporation is a
party;

 

(D)                               Existence and Good
Standing Certificates.  Certificates
of the appropriate government officials of the state of incorporation of such
corporation as to its existence and good standing, and certificates of the
appropriate government officials in each state where such corporation does
business and where failure to qualify as a foreign

 

33

 

corporation would have a Material Adverse Effect, as to its good
standing and due qualification to do business in such state, each dated within
30 days prior to the Closing Date.

 

VII.                            NEGATIVE
COVENANTS

 

The Company covenants and agrees that from the date hereof until the
Senior Subordinated Obligations have been finally and irrevocably paid in full
in accordance with the terms hereof and thereof:

 

7.1                                 Indebtedness.  The Company shall not, and shall not permit
any other Credit Party to, create, incur, issue, assume, guarantee or otherwise
become liable for any Indebtedness except (a) Permitted Indebtedness; (b) any
extension, renewal or refinancing of any Permitted Indebtedness (other than the
Senior Debt) on such terms and conditions as are, on the whole, no more onerous
to any Credit Party, than the terms and conditions of such Permitted
Indebtedness on the date of such extension, renewal or refinancing; and (c) any
replacement or refinancing of the Senior Debt provided that (i) the interest
rate on such refinancing shall be no greater than the interest rate (in the
case of a floating rate, the applicable margin) provided for in the Senior Loan
Agreement plus one percent (1%) per annum, (ii) the amortization of principal
on such refinancing shall be for no shorter period, and the debt service
thereon shall be for no greater annual amounts, than the amortization and other
debt service, respectively, provided for in the Senior Loan Agreement on the
date hereof (except that term loan principal that is so refinanced may fully
amortize on a straight-line basis during such period), (iii) the amount so
replaced or refinanced shall be no greater than the maximum amount of Senior
Debt permitted hereunder; and (iv) the other terms and conditions of such
replacement or refinancing are, on the whole, not materially more onerous to
the Company than the terms of the Senior Loan Agreement and not inconsistent
with the terms of the Senior Subordination Agreement.  Any Permitted Indebtedness which is subordinated to the Senior
Subordinated Obligations shall continue to be subordinated to the Senior
Subordinated Obligations on terms and conditions reasonably satisfactory to
Purchasers.

 

7.2                                 Limitation
on Liens.  The Company shall
not, and shall not permit any other Credit Party to, incur, create, assume, or
permit to exist any Lien upon any of its property, assets, or revenues,
including, but not limited to, shares of its capital stock and shares of
capital stock of each other Credit Party, whether now owned or hereafter
acquired, except Permitted Liens.

 

7.3                                 Merger,
Acquisition, Dissolution and Sale of Assets.  The Company shall not, and shall not permit any other Credit
Party to, become a party to a merger or consolidation, or purchase or otherwise
acquire all or a substantial part of the assets of any Person or any shares or
other evidence of beneficial ownership of any Person, or dissolve or liquidate;
provided, however, that the Company and the other Credit Parties may acquire private
fleets, and a hauling contract from the seller as long as (i) the Credit
Parties do not assume any liabilities other than in respect of the equipment
purchased, liabilities in respect of any hauling contract entered into and
compensation liability after the closing of the purchase for drivers hired from
the seller, (ii) the purchase price for such assets will be treated as Capital
Expenditures for purposes of this Agreement (including Section 7.11)
and (iii) the Credit Parties will not, as a result of such

 

34

 

acquisition be in violation of Section 7.11.  The Company shall not, and shall not permit
any other Credit Party to, form, acquire or permit the existence of any
Subsidiary or Subsidiaries of the Company, AMHC or the Parent other than those
in existence on the date of this Agreement unless (i) the Company gives prior
written notice thereof to the Holders, and (ii) the investments in or debts
incurred or liabilities assumed by the Company, AMHC or the Parent on behalf of
such Subsidiary or Subsidiaries (A) do not exceed $500,000 per year in the
aggregate and (B) do not exceed $1,500,000, from and after the Closing Date in
the aggregate.  The Company shall not, and
shall not permit any other Credit Party to, without Purchasers’ prior written
consent, pledge, sell (except inventory in the ordinary course of business and
other assets reasonably and in good faith determined by the Credit Parties to
be obsolete or no longer necessary to the business of the Credit Parties)
assign, transfer, create or suffer to exist a Lien (except for Permitted Liens)
upon any of the assets of any Credit Party.

 

7.4                                 Restricted
Payments.  Except pursuant to
the Warrant Documents, the Company shall not, and shall not permit any other
Credit Party to, at any time make or become obligated to make, directly or
indirectly, any (a) declaration of any dividend on, or any other payment or
distribution in respect of, any shares of any Credit Party, (b) payment or
distribution on account of the purchase, repurchase, redemption, put, call or
other retirement of any shares of any Credit Party, or of any warrant, option
or other right to acquire such shares, (c) payment or distribution on account
of any Indebtedness of the Company which is subordinate to the Senior
Subordinated Notes, except in accordance with the terms of the written
subordination agreement between the Purchasers and the holder of such
Indebtedness; provided, however, that the Subsidiaries may make
distributions to the Company and the Company may make distributions to the
Parent (including by way of distributions by AMGI to AMHC and by AMHC to
Parent) for the payment of taxes and permitted expenses of the Parent if, after
giving effect to any such distribution, (i) no Default shall have occurred
under the Senior Loan Agreement and be an uncured at the time of any such
distribution, (ii)  no Potential Default or Event of Default has occurred
and is continuing (or, with respect to distributions which will be used
immediately to pay tax liabilities of the Parent or which will be used to
reimburse members of the board of directors of the Parent for out-of-pocket
expenses, no Event of Default under Sections 8(a) or (g) has
occurred and is continuing), and (iii) the aggregate amount of all
distributions from the Company to the Parent shall not exceed during any Fiscal
Year (A) the sum of the actual amount of taxes due and owing by the Company for
such year plus (B) up to $200,000 for payment of other ordinary and necessary
expenses of the Parent incurred in the ordinary course of business and not
otherwise prohibited hereunder; provided, that Parent pays all
reasonable reimbursement expenses of the board of directors and insurance
premiums with respect to any directors and officers insurance policies of the
Credit Parties plus (C) the amount of distributions from the Company to the
Parent which are paid to the holders of the Warrants (or shares of capital
stock of the Parent issued to such holders upon the exercise of the Warrant)
during such Fiscal Year as part of the Put Price (as such term is defined in
the Warrant Purchase Agreement) following the exercise of a Put Option (as such
term is defined in the Warrant Purchase Agreement) without the prior written
consent of Purchasers, or (d) payment under the Management Agreement if at the
time of such payment or proposed payment under the Management Agreement there
exists either (i) an Event of Default under Section 8.1(a) of this
Agreement (other than a default by the Parent, the Company, or any Subsidiary
of the obligation to purchase all or a portion of the Put Shares (as such term
is defined in the Warrant Purchase Agreement) in a circumstance which does not

 

35

 

constitute a Put Event Exercise Payment Default) or Section 8.1(g)
of this Agreement, or (ii) a Put Event Exercise Payment Default.

 

7.5                                 Loans and
Investments.  Except for
Permitted Investments, the Company shall not, and shall not permit any other
Credit Party to, make any advance, loan, extension of credit, or capital
contribution to or investment in, or purchase any stock, bonds, notes,
debentures, or other securities of any Person (other than a Credit Party which
is a guarantor of all of the Senior Subordinated Obligations and with respect
to which any sale of the capital stock or substantially all of the assets of
such Credit Party would constitute an Event of Default); provided, however,
that the Company and their Subsidiaries may make advances to employees in the
ordinary course of business so long as the aggregate amount of such advances
does not exceed One Hundred Thousand Dollars ($100,000) in the aggregate
outstanding at any time.

 

7.6                                 Transactions with
Affiliates.  Except as
contemplated by this Agreement, the Other Agreements, the Acquisition
Documents, the Stockholders’ Agreement, the Registration Rights Agreement, the
Lease, and the Management Agreement, or as described on Schedule 7.6
hereto, the Company shall not, nor shall it permit any other Credit Party to,
enter into any transaction with any director, officer, employee, shareholder,
or Affiliate of the Credit Parties, except transactions (including those
permitted by Section 7.5, if any) upon terms which are fair and
reasonable and which shall be at least as favorable as would result in a
comparable arm’s-length transaction with a Person not a director, officer,
employee, shareholder or Affiliate of the Credit Parties; provided, however,
that no Credit Party shall be permitted to be a party to or make any payment pursuant
to any management agreement, consulting agreement, advisory agreement,
professional services agreement or similar type of agreement with Sterling,
Sterling Ventures Limited, RFE or any Affiliate of Sterling, Sterling Ventures
Limited or RFE, except for the Management Agreement, the Stockholders’
Agreement and the Registration Rights Agreement.  Upon the occurrence and during the continuation of a Potential
Default or Event of Default, no Credit Party shall be permitted to make any
payments with respect to any Affiliate Transactions or any transactions
otherwise permitted under this Section 7.6 except the Management
Agreement, the employment agreements with the officers of the Credit Parties
and those described on Schedule 7.6 hereto.  Upon the occurrence and during the
continuation of either (i) an Event of Default under Section 8.1(a)
of this Agreement (other than a default by Credit Parties of the obligation to
purchase all or a portion of the Put Shares (as such term is defined in the
Warrant Purchase Agreement) in a circumstance which does not constitute a Put
Event Exercise Payment Default) or Section 8.1(g) of this
Agreement, or (ii) a Put Event Exercise Payment Default, no Credit Party shall
be permitted to make any payment under the Management Agreement.

 

7.7                                 Nature
of Business.  The Company
shall not, and shall not allow any other Credit Party to, enter into any
business not related to the present business of the Company and the other
Credit Parties, as the case may be, or acquire any substantial business
operation or take any action or permit any other Credit Party to take any
action which could reasonably be expected to cause a “Regulatory Problem,” as
such term is defined in the Stockholders’ Agreement.

 

7.8                                 Modification
of Senior Loan Agreement. 
Except as provided in Section 7.1, the Company will not
agree or consent, and will not permit any other Credit Party to agree or

 

36

 

consent, to any modification, amendment or waiver of any of the terms
or provisions of the Senior Loan Agreement that (a) increases the maximum
amount of Senior Debt permitted hereunder, (b) permits the Company to reborrow
amounts paid on the Term Loans, or (c) extends the maturity date of the Senior
Debt beyond June 30, 2008, without Purchasers’ prior written consent.

 

7.9                                 Modification
of Employment Agreements, the Acquisition Documents, Lease, the Non-Compete
Agreements and Contingent Options. 
The Company will not agree to any modification, amendment, termination
or waiver of any of the terms or provisions of any of the (a) Employment
Agreements unless such modification, amendment, termination or waiver is (i)
approved by the board of directors of the Company, (ii) delivered to Purchasers
prior to approval by the board of directors of the Company and (iii) with
respect to compensation, is reasonable under current market rates as determined
by the compensation committee of the board of directors comprised of at least
two non-employee outside directors in a meeting (which can be by telephone)
thereof either (A) at which an observer designated by each of the Purchasers
was in attendance throughout and was provided at the meeting with copies of all
of the materials reviewed or considered by the compensation committee in evaluating
such modification, amendment, termination or waiver, or (B) with respect to
which the Purchasers were provided, at least three (3) days prior to such
meeting, with copies of all of the written materials to be reviewed and
considered at or in connection with such meeting which materials and
information are those which the compensation committee has determined are
necessary to make an informed decision with respect thereto, and (b) the
Acquisition Documents, the Lease, the Non-Compete Agreements or the Contingent
Options, without Purchasers’ prior written consent.

 

7.10                           Modification
of Management Agreement.  The
Company will not agree to any modification, amendment, termination or waiver of
any of the terms or provisions of the Management Agreement, without Purchasers’
prior written consent.

 

7.11                           Capital Expenditures.  The Company will not, and shall not permit
any other Credit Party to make or commit to make (by way of the acquisition of
securities of a Person or otherwise) any Capital Expenditure for the
acquisition of fixed or capital assets (excluding any Capital Expenditure in
respect of an asset acquired in connection with normal replacement and
maintenance programs properly charged to current operations) except for Capital
Expenditures in the ordinary course of business not exceeding, in the aggregate
for the Credit Parties during any fiscal year ending during any test period set
forth below, the amount set forth opposite such test period:

 

37

 

	
  Fiscal Year Ending

  	
   

  	
  Amount

  
	
  December 31, 2001

  	
   

  	
  $

  	
  16,500,000

  
	
  December 31, 2002

  	
   

  	
  $

  	
  17,050,000

  
	
  December 31, 2003

  	
   

  	
  $

  	
  17,050,000

  
	
  December 31, 2004

  	
   

  	
  $

  	
  17,600,000

  
	
  December 31, 2005

  	
   

  	
  $

  	
  19,250,000

  
	
  December 31, 2006

  	
   

  	
  $

  	
  19,250,000

  
	
  December 31, 2007

  	
   

  	
  $

  	
  19,250,000

  
	
  December 31, 2008 and December 31
  of each fiscal year thereafter

  	
   

  	
  $

  	
  19,250,000

  

 

7.12                           Remuneration.  The Company will not permit, and shall cause
each other Credit Party to not permit, the aggregate amount of salary and other
direct and indirect remuneration (including, but not limited to, employee
benefits and professional, consulting and management fees and expenses) paid by
the Credit Parties during any Fiscal Year to Sterling, Sterling Ventures
Limited, any Affiliate of Sterling or Sterling Ventures Limited, RFE, any
Affiliate of RFE, or any successor or transferee of any such Person(s), or any
member of such Person’s immediate family, directly or indirectly without the
prior written consent of Purchasers, to exceed the amounts provided for in the
Management Agreement as in existence on the Closing Date or Section 7.12
of the Stockholders’ Agreement; provided, however, that no direct
or indirect remuneration shall be made at any time during the existence of
either an (a) Event of Default under Section 8.1(a) of this
Agreement (other than a default by the Credit Parties of the obligation to
purchase all or a portion of the Put Shares (as such term is defined in the
Warrant Purchase Agreement) in a circumstance which does not constitute a Put
Event Exercise Payment Default) or Section 8.1(g) of this Agreement
or (b) a Put Event Exercise Payment Default; and provided further that nothing
herein shall prevent the Company from providing insurance and similar benefits
to its directors or reimbursing directors, including those designated by
Sterling and RFE, for their reasonable out-of-pocket expenses incurred
performing their duties as directors of the Credit Parties (provided, that,
such amounts are subject to the aggregate monetary threshold set forth in and
permitted to be paid pursuant to subclause (iii) of the proviso of Section 7.4).

 

7.13                           Prepayments.  The Company shall not, and shall not permit
any other Credit Party to, prepay any existing Indebtedness owing to any
person, except that (i) the Company may prepay Indebtedness outstanding in
connection with a purchase money Lien from the proceeds of the sale of property
subject to such Lien; (ii) the Company may prepay trade creditors in the

 

38

 

ordinary course of business; (iii) the Company may prepay the Senior
Debt; or (iv) subject to the restrictions set forth herein, the Company may
prepay Purchasers as provided in this Agreement.

 

7.14                           Limitation
on Contingent Payments.  The
Company shall not, and shall not permit any other Credit Party to, make any
Contingent Payments due under the Original Acquisition Agreement unless (a) no
Event of Default shall have occurred and be continuing, (b) the Purchasers
shall have received audited financial statements for the period for which the
Contingent Payment relates, and (c) after giving effect to such Contingent
Payment, the ratio of Consolidated EBITDA less consolidated Capital
Expenditures of the Credit Parties to Consolidated Fixed Charges for the
preceding period of four full fiscal quarters shall not be less than 1.10 to
1.00; (iv) such Contingent Payments shall only be paid out of Contingent
Payments Excess Cash Flow and (v) both the current Borrowing Base (as such
term is defined in the Senior Loan Agreement) and Available RC Commitments (as
such term is defined in the Senior Loan Agreement) must have at least
$8,000,000 in availability to be borrowed under the Senior Loan Agreement after
giving effect to such Contingent Payments; provided, that if only a
portion of the Contingent Payments could be paid without violation of this Section 7.14,
the Company may pay such portion of the Contingent Payments.

 

7.15                           Stock
Option Plan.  The Company
shall not, and shall not permit any other Credit Party to, enter into any
employee stock option or benefit plan with respect to shares of Capital Stock
of the Parent unless (i) such employee stock or benefit plan shall be
approved by a disinterested majority of the Board of Directors of the Company,
(ii)  the options shall contain an exercise price equal to fair market
value at the date of grant, and (iii) the options shall be exercisable
into not more than 592,189 shares of the Common Stock (subject to adjustments
for stock splits, reverse stock splits and similar events as to which corresponding
adjustments are made to the number of shares of Capital Stock issuable upon the
exercise of the Warrants).  The Company
shall not, and shall not permit any of its Subsidiaries or the Parent to, agree
to any modification, amendment or waiver of any of the terms or provisions of
such a plan which would cause or result in the grant price or the
exercise/strike price of any stock, options or similar rights thereunder to be
less than the fair market value thereof on the grant or issue date thereof, as
the case may be, without the prior written consent of Purchasers (which shall
not be withheld unreasonably).

 

VIII.                        EVENTS
OF DEFAULT AND REMEDIES THEREFOR

 

8.1                                 Events
of Default.  The occurrence
of any one or more of the following events shall constitute an “Event of
Default”:

 

(a)                                  the Company shall
(i) fail to pay, when due, any principal or interest sums payable under
the Senior Subordinated Notes or this Agreement, or (ii) shall fail to pay
within three (3) days of when due any other Senior Subordinated Obligations;

 

(b)                                 any Credit Party shall
fail to pay when due and after passage of any applicable notice and cure
periods, whether upon acceleration or otherwise, any Indebtedness, individually
or in the aggregate, having an unpaid principal amount in excess of $500,000,
other than Indebtedness under the Senior Loan Documents;

 

39

 

(c)                                  any Credit Party
shall fail to perform or observe any agreement, covenant, term or condition
contained in Article VII or Section 6.23 of this
Agreement;

 

(d)                                 any Credit Party shall
fail to perform or observe any other agreement, covenant, term or condition
contained in this Agreement, and (i) such failure shall continue uncured for a
period of thirty days following the earlier of the date the Company is notified
of such failure by a Holder, or the date upon which the Company first knew or
should have known of such failure, or (ii) with respect to delivery by the
Company of reports, certificates and other information under Sections 6.1,
6.2, 6.13, 6.21 or 6.25, the Company shall fail to
deliver such information within ten days after notice from a Holder that such
information is due or past due;

 

(e)                                  any Credit Party
shall fail to comply in any material respect with any agreement, indenture,
mortgage, deed of trust, or other agreement binding on it or affecting its
properties or business, that involves amounts, or has a value, in excess of
$500,000, including, without limitation, the Senior Subordinated Notes and the
Guaranty to which any Credit Party is a party, but excluding the Senior Loan
Documents, and such failure shall continue after the applicable grace period,
if any, specified therein; provided that this subparagraph (e) shall not
apply to a default under either the Put Guaranty or the Warrant Documents,
except in the case of a Put Event Exercise Payment Default or failure to pay
under the Put Guaranty with respect thereto;

 

(f)                                    any representation,
warranty or other material information whatsoever made or provided by any Credit
Party in this Agreement was incorrect or misleading in any material respect
when made;

 

(g)                                 any Credit Party shall
become subject to an Event of Bankruptcy;

 

(h)                                 any judgment or order
for payment of money shall be rendered against any Credit Party which exceeds
$500,000 individually, or $500,000 in the aggregate, and either
(i) enforcement proceedings shall have been commenced by any creditor upon
such judgment or order, or (ii) there shall be a period of 30 consecutive
days during which a stay of enforcement of such judgment or order, by reason of
a pending appeal or otherwise, shall not be in effect;

 

(i)                                     The occurrence or
existence of any acceleration of indebtedness or any general notification to
account debtors of any Credit Party to remit to the Senior Lenders (or any
agent or designee thereof), amounts owing from such account debtors, or any
foreclosure action by the Senior Lender under the Senior Loan Documents;

 

(j)                                     the occurrence of
a Change of Control, directly or indirectly of the Company, except as
contemplated by the Acquisition Agreements, as of the Closing Date, or upon
exercise of the Warrant or as a result of an Initial Public Offering;

 

40

 

(k)                                  Dennis Nash shall
cease to be the Chief Executive Officer of the Company unless the Company shall
have within a reasonable period not to exceed 180 days obtained a successor
Chief Executive Officer (or President) of at least comparable background,
experience and ability who is reasonably acceptable to the Purchasers;

 

(l)                                     Carl Young shall
cease to be the Chief Administrative Officer and/or Chief Financial Officer of
the Company unless the Company shall have within a reasonable period not to
exceed 180 days obtained a successor Chief Financial Officer of at least
comparable background, experience and ability who is reasonably acceptable to
the Majority Holders; or

 

(m)                               Parent, AMHC, NCT, ATL,
McDaniel, Evalia, PCT or any other Subsidiary shall revoke or attempt to revoke
any Guaranty or the Company, AMHC, AMHC Acquisition Corp., NCT, ATL, McDaniel,
Evalia, PCT or any other Subsidiary shall revoke or attempt to revoke the Put
Guaranty executed in favor of the Purchasers, or any of them shall repudiate
its liability thereunder or shall fail to comply with or perform any of the
terms thereof; provided, however, that a failure by any Credit
Party to purchase all or a portion of the Put Shares (as such term is defined
in the Warrant Purchase Agreement), pursuant to the Warrant Purchase Agreement
or the Put Guaranty, shall not be an Event of Default under this Section 8.1(m)
except in the case of a Put Event Exercise Payment Default.

 

8.2                                 Remedies
of Holders upon Occurrence of Event of Default.  Subject to the terms of the Senior
Subordination Agreement (the terms of which are enforceable by the Senior
Lender and cannot be enforced by the Credit Parties, or any Affiliate thereof),
when any Event of Default described in Section 8.1 above, other
than any Event of Default under Section 8.1(g), has occurred and is
continuing, the Holders, by action of the Majority Holders, may (in addition to
any other right, power or remedy permitted to Purchasers by law) declare the
entire amount of the Senior Subordinated Obligations, including, without
limitation, the entire principal, premium (if any), and all interest accrued
then outstanding under the Senior Subordinated Note, to be, and the same shall
thereupon become, forthwith due and payable, together with a premium equal to
the product of the applicable Premium Percentage multiplied by the entire
principal amount then outstanding under the Senior Subordinated Note, without
any presentment, demand, protest, notice of default, notice of intention to
accelerate, notice of acceleration or other notice of any kind, all of which are
hereby expressly waived, and in such event the Company shall (subject to the
terms of the Senior Subordination Agreement) forthwith pay to Purchasers an
amount equal to 100% of the amount thereof. 
Subject to the terms of the Senior Subordination Agreement (the terms of
which are enforceable by the Senior Lender and cannot be enforced by the Credit
Parties, or any Affiliate thereof), when any Event of Default described in subparagraph
(g) of Section 8.1 above shall occur, all of the Senior
Subordinated Obligations, including, without limitation, the entire principal,
premium (if any), and all accrued interest then outstanding under the Senior
Subordinated Notes, shall thereupon be forthwith due and payable, together with
a premium equal to the product of the applicable Premium Percentage multiplied
by the entire principal amount then outstanding under the Senior Subordinated
Note, without any presentment, demand, protest, notice of default, notice of
intention to accelerate, notice of acceleration or other notice of any kind
(including any notice by the Holders of the Senior Subordinated Notes),

 

41

 

all of which are hereby expressly waived by the Company, and the
Company will (subject to the terms of the Senior Subordination Agreement)
forthwith pay to Purchasers an amount equal to 100% of the amount thereof.

 

8.3                                 Annulment of
Acceleration.  The provisions
of the foregoing Section 8.2 are subject to the condition that, if
all or any part of the Senior Subordinated Obligations have been declared or
have otherwise become immediately due and payable by reason of the occurrence
of any Event of Default, Purchasers may, by written instrument delivered to the
Company (an “Annulment Notice”), rescind and annul such declaration and
the consequences thereof as to the Senior Subordinated Notes, provided that (a)
at the time such Annulment Notice is delivered no judgment or decree has been
entered for the payment of any monies due pursuant to such Senior Subordinated
Obligations in connection therewith, and (b) all arrears of interest and all
other sums payable on such Senior Subordinated Obligations in connection
therewith (except any principal, interest, premium or Prepayment Fee which has
become due and payable solely by reason of such declaration under Section 8.2
hereof) shall have been duly paid or deferred by the Holder of the Senior
Subordinated Obligations agreeing to such rescission and annulment; and provided
further, that no such rescission and annulment shall extend to or affect
any subsequent default or Event of Default or impair any right consequent
thereto, and shall not be deemed a waiver of the Event of Default giving rise
to the acceleration unless specifically waived in writing by the Purchasers
consenting to such recession and annulment.

 

8.4                                 Payment
of Senior Subordinated Obligations and Remedies.  Subject to the terms of the Senior Subordination Agreement, the
Purchasers shall have the right, which is absolute and unconditional, to
receive payment of the principal of and interest on the Senior Subordinated
Notes and payment of all other Senior Subordinated Obligations on the date when
due and, upon the occurrence and continuance of an Event of Default, to
institute suit against the Company for the enforcement of any such
payment.  Such rights shall not be
impaired without Purchasers’ prior written consent.  Subject to the terms of the Senior Subordination Agreement, if
any Event of Default shall occur and be continuing, Holders of a
majority-in-interest of the Senior Subordinated Notes may exercise any right or
remedy they have at law, in equity or under this Agreement or any Other
Agreement.  No right or remedy conferred
upon or reserved to Purchasers under this Agreement or any Other Agreement is
intended to be exclusive of any other right or remedy, and every right and
remedy shall be cumulative and in addition to every other right or remedy given
hereunder or now or hereafter existing under any applicable law.  Every right and remedy given by this Agreement
or by applicable law to Purchasers may be exercised from time to time and as
often as may be deemed expedient by Purchasers.

 

8.5                                 Conduct
No Waiver.  No course of
dealing on the part of any Holder, nor any delay or failure on the part of
Purchasers to exercise any of its rights, shall operate as a waiver of such
right or otherwise prejudice such Holder’s rights, powers and remedies.  If the Company fails to pay, when due, the
principal of, the premium (if any), Prepayment Fee (if any), or the interest on,
the Senior Subordinated Notes, or fails to comply with any other provision of
this Agreement, the Company shall pay to the Holders, to the extent permitted
by law, on demand, such further amounts as shall be sufficient to cover the
cost and expenses, including, but not limited to, reasonable attorney’s fees,
incurred by Holders in collecting any sums due on the Senior Subordinated Notes
or in otherwise enforcing any of such Holder’s rights.

 

42

 

8.6                                 Notice
of Default.  With respect to
Events of Default or claimed defaults, or any condition or event which with
notice or lapse of time, or both, may become an Event of Default, the Company
will give the following notices:

 

(a)                                  The Company will
immediately furnish to each Holder and the Senior Lender notice in writing of
the occurrence of an Event of Default, or any condition or event which, after
notice or lapse of time, or both, would constitute such an Event of
Default.  Such notice shall specify the
nature of such event, condition or default and what action the Company has
taken or is taking or proposes to take with respect thereto.

 

(b)                                 If any holder of
Senior Debt or of any other Indebtedness of the Company gives any notice or
takes any other action with respect to a claimed default, the Company will
promptly give written notice thereof to each Holder, describing the notice or
action and the nature of the claimed event, condition or default.

 

IX.                                SUBORDINATION

 

Notwithstanding any provision in this Agreement to the contrary, the
Indebtedness evidenced by the Senior Subordinated Notes shall be subordinate to
the Senior Debt, and Purchasers’ rights and remedies hereunder shall be
subordinate to the rights and remedies of the Senior Lender, in accordance with
the terms of the Senior Subordination Agreement; provided, however,
that nothing contained in this Article IX or elsewhere in this
Agreement, in the Senior Subordinated Notes or the Senior Subordination
Agreement is intended to or shall impair, as between the Company and
Purchasers, the obligations of the Company, which are absolute and
unconditional, to pay to Purchasers the principal of, premium (if any),
Prepayment Fee (if any) and interest on the Senior Subordinated Notes and all
other Senior Subordinated Obligations as and when the same shall become due and
payable in accordance with their terms, or is intended to or shall affect the
relative rights of Purchasers and creditors of the Company other than the
holders of the Senior Debt, nor shall anything herein or therein prevent
Purchasers from exercising all remedies otherwise permitted by applicable law
upon an Event of Default under this Agreement.

 

X.                                    FORM
OF SENIOR SUBORDINATED NOTES, REGISTRATION, TRANSFER AND REPLACEMENT

 

10.1                           Form
of Senior Subordinated Notes. The Senior Subordinated Notes
initially delivered under this Agreement will be a fully registered notes in
the form attached hereto as Exhibits A-1, A-2, A-3, A-4,
A-5, A-6 and A-7.

 

10.2                           Senior
Subordinated Notes Register. 
The Company shall cause to be kept at the principal office a register
for the registration and transfer of the Senior Subordinated Notes.  The names and addresses of the Holder of the
Senior Subordinated Notes, the transfer thereof and the names and addresses of
the transferees of the Senior Subordinated Notes shall be recorded in such
register.

 

43

 

10.3                           Issuance
of New Senior Subordinated Notes upon Exchange or Transfer.  Upon surrender for exchange or registration
of transfer of the Senior Subordinated Notes at the office of the Company
designated for notices in accordance with Section 12.3 hereof, the
Company shall execute and deliver, at its expense, one or more new Senior
Subordinated Notes of any authorized denomination requested by the Holder of
the surrendered Senior Subordinated Notes, each dated the date to which
interest has been paid on the Senior Subordinated Notes so surrendered (or, if
no interest has been paid, the date of the surrendered Senior Subordinated Notes),
but in the same aggregate unpaid principal amount as the surrendered Senior
Subordinated Notes, and registered in the name of such Person or Persons as
shall be designated in writing by such Holder. 
Every Senior Subordinated Notes surrendered for registration of transfer
shall be duly endorsed, or be accompanied by a written instrument of transfer
duly executed, by the Holder of such Senior Subordinated Notes or by his
attorney duly authorized in writing.

 

10.4                           Replacement
of Senior Subordinated Notes. 
Upon receipt of evidence satisfactory to the Company of the loss, theft,
mutilation or destruction of the Senior Subordinated Notes and, in the case of
any such loss, theft or destruction, upon delivery of a bond of indemnity in
such form and amount as shall be reasonably satisfactory to the Company or, in
the event of such mutilation upon surrender and cancellation of the Senior
Subordinated Notes, the Company, without charge to the Holder thereof, will
make and deliver a new Senior Subordinated Notes of like tenor and the same
series in lieu of such lost, stolen, destroyed or mutilated Senior Subordinated
Notes.  If any such lost, stolen or
destroyed Senior Subordinated Notes is owned by Purchasers or any other Holder
whose credit is satisfactory to the Company, then the affidavit of an
authorized officer of such owner setting forth the fact of loss, theft or
destruction and of its ownership of the Senior Subordinated Notes at the time
of such loss, theft or destruction shall be accepted as satisfactory evidence
thereof, and no further indemnity shall be required as a condition to the
execution and delivery of a new Senior Subordinated Note, other than a written
agreement of such owner (in form reasonably satisfactory to the Company) to
indemnify the Company.

 

XI.                                INTERPRETATION
OF AGREEMENT

 

11.1                           Certain Terms Defined.  When used in this Agreement, the terms set
forth below are defined as follows:

 

“AAC” is defined in the preamble of this Agreement.

 

“Acquisition Agreements” means the Kenan Merger Agreement and
the Advantage Merger Agreement.

 

“Acquisition Documents” means the Kenan Merger Agreement and the
agreements, documents and instruments executed in connection therewith or
contemplated thereby, and all amendments thereto and the Advantage Merger Agreement
and the agreements, documents and instruments executed in connection therewith
or contemplated thereby, and all amendments thereto.

 

44

 

“Advantage Acquisition Transaction” is defined in the recitals
of this Agreement.

 

“Advantage Merger” means the merger of AMHC Acquisition Corp.
with and into AMHC, with the surviving entity being AMHC, which merger shall be
consummated as of the Closing Date and shall be pursuant to that certain
Certificate of Merger dated as of the Closing Date.

 

“Advantage Merger Agreement” is defined in the recitals of this
Agreement.

 

“Advantage Merger Documents” means the Certificate of Merger
dated as of the Closing Date, the Advantage Merger Agreement and the
agreements, documents and instruments executed in connection with the Advantage
Merger or contemplated thereby, and all amendments thereto.

 

“Affiliate” means with respect to any Person, a Person that,
directly or indirectly or through one or more intermediaries, controls, is
controlled by, or is under common control with, such Person. The term “control”
as used with respect to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of such Person, whether through the ownership of voting securities, by
contract, or otherwise.  For purposes
hereof, the Purchasers shall not be Affiliates of any Credit Party.

 

“Affiliate Transactions” is defined in Section 4.15
of this Agreement.

 

“Agreement” means this Note Purchase Agreement, including all
schedules and exhibits hereto, as the same may be modified, supplemented,
extended and/or amended from time to time.

 

“AMGI” is defined in the recitals of this Agreement.

 

“AMHC” is defined in the recitals of this Agreement.

 

“AMHC Acquisition Corp.” is defined in the recitals of this
Agreement.

 

“Annulment Notice” is defined in Section 8.3 of this
Agreement.

 

“ATL” means Advantage Tank Lines, Inc., and its wholly and
partially-owned Subsidiaries.

 

“Basis” means any past or present fact, situation, circumstance,
status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act or transaction that forms or could form the basis for
any specified consequence.

 

“Big-Five Accounting Firm” means any of Arthur Andersen LLP,
Deloitte & Touche LLP, Ernst & Young LLP, KPMG Peat Marwick LLP,
PricewaterhouseCoopers LLP and any successor thereof.

 

45

 

“Business Day” means each day of the week except Saturdays,
Sundays, and days on which banking institutions are authorized by law to close
in the State of Ohio.

 

“Capital Expenditures” means, for any Person, for any time
period, the aggregate of all expenditures (whether paid in cash or accrued as
liabilities and including that portion of Capital Leases capitalized on such
Person’s balance sheet) during such time period that, in accordance with GAAP,
are included as property, plant or equipment or similar fixed asset accounts on
such Person’s balance sheet or consist of tractor or trailer equipment
purchased from fleet operators (whether or not in connection with such purchase
such Person or any of its Affiliates obtains a revenue hauling contract or
similar agreement), excluding Capital Expenditures for which the Company is
reimbursed or which are paid for using the proceeds of environmental, property
or casualty insurance policies and minus Net Proceeds from the sale or disposal
of equipment during such time period.

 

“Capital Lease” means any lease which has been or should be
capitalized on the books of the lessee in accordance with GAAP.

 

“Capital Stock”  means
the Common Stock, the Preferred Stock and any other capital stock of the
Parent, AMHC or the Company authorized from time to time, and any other shares,
options, warrants, rights, interests, participations or equivalents (however
designated) of or in Parent, AMHC or the Company, whether voting or nonvoting,
including, without limitation, common stock, options, warrants, preferred
stock, phantom stock, stock appreciation rights, preferred stock, convertible
notes or debentures, stock purchase rights, and all agreements, instruments,
documents, and securities convertible, exercisable, or exchangeable, in whole
or in part, into any one or more of the foregoing.

 

“Casualty Event” means any of the following events:  (a) the destruction of any Property or other
tangible assets of the Credit Parties, or the occurrence of damage to such
Property or assets, which in each case renders the repair or replacement thereof
uneconomic; (b) the requisition of title to such Property or assets by any
governmental authority for a period of more than 6 months; (c) the constructive
total loss with respect to such Property or assets; or (d) the loss of quiet
title to any real property owned or leased by the Credit Parties.

 

“Certificate of Designations” means that certain Certificate of
Incorporation of the Parent as in effect on the Closing Date, together with the
Certificate of Designations, Powers, Preferences and Rights of the Series A
Convertible Preferred Stock (Par Value $0.001 per share), Series B Convertible
Preferred Stock (Par Value $0.001 per share), Series C Convertible Preferred
Stock (Par Value $0.001 per share) and Series D Convertible Preferred Stock
(Par Value $0.001 per share) of the Parent filed with the Secretary of State of
Delaware on or about the Closing Date, that designates the relative rights and
preferences of the Preferred Stock.

 

“Change of Control” means (a) the Company shall cease to own and
control, beneficially and of record, 100% of the issued and outstanding shares
of capital stock of McDaniel,

 

46

 

Evalia, PCT, NCT, Geni Management Corporation or ATL, free and clear of
all Liens other than Permitted Liens and Geni Management Corporation shall
cease to own and control, beneficially and of record, 100% of the issued and
outstanding shares of capital stock of Geni Transport, Inc., free and clear of
all Liens other than Permitted Liens; (b) AMHC shall cease to own and control,
beneficially and of record, 100% of the issued and outstanding shares of
capital stock of AMGI (c) the Parent shall cease to own and control,
beneficially and of record, 100% of the issued and outstanding shares of
capital stock of AMHC and Kenan, free and clear of all Liens other than
Permitted Liens; (d) any sale or other disposition of all or substantially all
of the consolidated assets of the Company in a single transaction or series of
related transactions; (e) (i) prior to the consummation of an Initial Public
Offering, Persons holding capital stock of the Parent as of the Closing Date
and their Permitted Transferees (as such term is defined in the Stockholders’
Agreement in effect on the date hereof), determined on a fully diluted basis,
shall cease to own at least 51% of all shares of Capital Stock of the Parent or
Sterling and/or RFE shall cease to have the power to appoint a majority of the
Parent’s Board of Directors or (ii) after the consummation of an Initial Public
Offering, Persons holding capital stock of the Parent (and their Permitted
Transferees (as such term is defined in the Stockholders’ Agreement in effect
on the date hereof)) as of the Closing Date, determined on a fully diluted
basis shall cease to own or control 33.33% of the fully diluted voting power
represented by the capital stock of the Company, in each case assuming the full
exercise of all securities exercisable, convertible or exchangeable for or into
capital stock of the Parent; (f) the acquisition by any Person, or two or more
Persons acting in concert (other than the Persons described in clause (e)
above), of beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of 1934) of
40% or more of the outstanding shares of capital stock of the Parent; (g)
Sterling ceases to be represented on the Board of Directors of the Parent; (h)
more than two of the Sterling Principals shall (other than by reason of death
or disability) cease to have (together with the other Sterling Principals) the
right or ability by voting power, contract or otherwise to direct or cause the
direction of the management and policies of Sterling; or (i) more than two of
the Sterling Principals shall (other than by reason of death or disability)
cease to be managing members of the sole general partner of Sterling; provided,
that, for purposes of clauses (a), (b) or (c) above, a merger or
consolidation of the Company into, or with, any of its Subsidiaries, or any Subsidiary
with or into any other Subsidiary or the merger or consolidation of AMHC into
or with Parent or AMGI, shall not be deemed a “Change of Control”.

 

“Closing Date” means the date on which all of the conditions
stated in Article V of this Agreement have been met to Purchasers’
satisfaction and the purchase price for the Senior Subordinated Notes have been
paid, but in any event not later than April 30, 2001.

 

“Code” means the Internal Revenue Code of 1986, as amended and
in effect from time to time, and the regulations promulgated thereunder.

 

“Common Stock” means the $.0001 par value common stock of the
Parent.

 

47

 

“Commonly Controlled Entity” means an entity, whether or not
incorporated, which is under common control with either the Company within the
meaning of Section 4001 of ERISA or is part of a group which includes
either the Company and which is treated as a single employer under
Section 414 of the Code.

 

“Company” is defined in the preamble of this Agreement.

 

“Consolidated Current Assets” means, at a particular date, all
amounts which would, in conformity with GAAP, be included under current assets
on a consolidated balance sheet of the Credit Parties as at such date; provided,
however, that such amounts shall not include (a) any amounts for
any Indebtedness owing by an Affiliate of the Parent, unless such Indebtedness
arose in connection with the sale of goods or other property in the ordinary
course of business and would otherwise constitute current assets in conformity
with GAAP, (b) any shares of stock issued by an Affiliate of the Parent,
or (c) cash or cash equivalents.

 

“Consolidated Current Liabilities” means, at a particular date,
all amounts which would, in conformity with GAAP, be included under current
liabilities on a consolidated balance sheet of the Credit Parties as at such
date; provided, however, that such amounts shall not include the
current portion of any long-term indebtedness.

 

“Consolidated EBITDA” means for any period, the sum for such
period of (a) Consolidated Net Income for such period, (b) the sum of
provisions for such period for income taxes, interest expense, and depreciation
and amortization expense used in determining such Consolidated Net Income, (c) amounts
deducted in such period in respect of non-cash expenses in accordance with
GAAP, (d) the amount of any aggregate net loss (or minus the amount of any
gain) during such period arising from the sale, exchange or other disposition
of capital assets and (e) non-cash expenses deducted in such period in
connection with any earn-out agreements, stock appreciation rights, “phantom”
stock plans, employment agreements, non-competition agreements, subscription
and stockholders agreements and incentive stock option plans made in connection
with acquisitions of Persons or businesses by any Credit Party or the retention
of executives, officers or employees by any Credit Party, including (but
without duplication) any Person that has become a Subsidiary during such
period, on a pro forma basis as if such acquisition had occurred on the first
day of such period; provided, that Consolidated EBITDA shall in any event
exclude, from and after the Closing Date, (x) the effect of any write-up
of any assets acquired in any Permitted Acquisitions, and (y) the amount of any
non-cash income recognized during any period for which Consolidated EBITDA is
determined; and provided, further, that, except for purposes of
calculating Consolidated EBITDA for determining compliance with Sections 6.23(b)
and (c), for any period ended prior to date on which four full fiscal
quarters of the Parent have elapsed since the Closing Date, Consolidated EBITDA
for such period shall be calculated to give effect on a pro forma basis to the Kenan
Acquisition Transaction and the Advantage Acquisition Transaction as if such
transactions had been consummated on the first day of such period.

 

48

 

“Consolidated Fixed Charges” means for any period, the sum of
(i) the amounts deducted for the cash portion of Consolidated Interest
Expense in determining Consolidated Net Income for such period, (ii) the
amount of scheduled payments of principal of Indebtedness during such period
and (iii) the amount of cash income taxes paid during such period.

 

“Consolidated Funded Debt” means for any period of twelve
consecutive calendar months, the sum of (a) Consolidated Senior Indebtedness
for such period and (b) all other Indebtedness of the Credit Parties of the
type set forth in clauses (a), (b), (c), (d) (other than letters of credit
issued to support the payment of deductibles or retentions payable under
insurance policies obtained by any Credit Parties required pursuant to the
Senior Loan Documents), (e) and (g) of the definition of Indebtedness as of the
last day of such period, determined on a consolidated basis in accordance with
GAAP, including, in any event, and any purchase money Indebtedness; but
excluding any Qualified Put Notes up to an aggregate outstanding principal
amount of $25,000,000 (and any Put Guaranty or other Put Debt to the extent
relating to such portion of such Qualified Put Notes) to the same extent that
it is excluded from the computation of “Consolidated Funded Debt” (as such term
is defined in the Senior Loan Agreement) under the Senior Loan Agreement.

 

“Consolidated Interest Expense” means for any period, the amount
which, in conformity with GAAP, would be set forth opposite the caption
“interest expense” or any like caption (including without limitation, imputed
interest included in payments under Capital Leases and all commissions and
other fees and charges owed with respect to letters of credit) on a
consolidated income statement of the Credit Parties for such period excluding
the amortization of any original issue discount and any interest on Qualified
Put Notes to the extent such interest is accrued but not paid and minus the
amount set forth opposite the caption “interest income” on a consolidated
income statement of the Parent and its Subsidiaries for such period.

 

“Consolidated Net Income” means for any period, the consolidated
net income (or deficit) of the Credit Parties for such period (taken as a
cumulative whole), determined in accordance with GAAP; provided that there
shall be excluded (a) the income (or deficit) of any Person accrued prior
to the date it becomes a Subsidiary or is merged into or consolidated with any
Credit Party (except as provided in the last proviso of Consolidated EBITDA),
(b) the income (or deficit) of any Person (other than a Subsidiary) in
which any Credit Party has an ownership interest, except to the extent that any
such income has been actually received by such Credit Party in the form of
dividends or similar distributions, (c) the undistributed earnings of any
Subsidiary to the extent that the declaration or payment of dividends or
similar distributions by such Subsidiary is not at the time permitted by the
terms of any Contractual Obligation (other than the Senior Loan Documents),
Governing Document or requirement of law applicable to such Subsidiary,
(d) any aggregate net gain (but not any aggregate net loss) during such
period arising from the sale, exchange or other disposition of capital assets
(such term to include all fixed assets, whether tangible or intangible, all inventory
sold in conjunction with the disposition of fixed assets and all securities),
(e) any write-up of any asset, (f) any net gain from the collection
of the proceeds of life insurance policies, (g) any gain or loss

 

49

 

arising from the acquisition of any securities, or the extinguishment,
under GAAP, of any Indebtedness, of any Credit Party, (h) in the case of a
successor to the Company by consolidation or merger or as a transferee of its
assets, any earnings of the successor corporation prior to such consolidation,
merger or transfer of assets, and (i) any deferred credit representing the
excess of equity in any Subsidiary at the date of acquisition over the cost of
the investment in such Subsidiary.

 

“Consolidated Senior Indebtedness” means at any date, the sum of
(a) the aggregate outstanding principal amount of the Term Loans, and
(b) the average daily outstanding principal amount of the Revolving Credit
Loans and Letters of Credit during the twelve consecutive calendar month period
immediately preceding such date.

 

“Contaminated Site List” means any publicly available list,
registry or other compilation established by any Governmental Entity of sites
that require or potentially require investigation, removal actions or any other
response under any Environmental Law. 
This includes, without limitation, CERCLIS and equivalent state lists,
registrations, or other compilations.

 

“Contamination or Contaminated” means a Release (actual or
reasonably suspected) or threatened Release, if any investigatory, remedial,
removal or other response action is required, or could be required, by a
Governmental Entity having jurisdiction under any Environmental Law, with
respect to such Release, suspected release or threatened Release of a Hazardous
Material, or if such Release or suspected Release of a Hazardous Material has
(or is alleged to have) resulted in damages to natural resources.

 

“Contingent Options” means, collectively, options to purchase
Common Stock issued to (i) Dennis Nash and Carl Young pursuant to Amended and
Restated Contingent Stock Option Agreements, which permit each holder thereof
to purchase up to an aggregate of 161,000 shares of Common Stock and (ii) Jerry
L. McDaniel pursuant to an Amended and Restated Contingent Option Agreement,
which permits the holder thereof to purchase up to an aggregate of 21,400
shares of Common Stock.

 

“Contingent Payments” means, collectively, (i) the payments of
additional purchase price pursuant to Section 2.3 of the Original
Acquisition Agreement and (ii) the payments payable under the Emery Asset
Purchase Agreement.

 

“Contingent Payments Excess Cash Flow” means, as to the Credit
Parties for each fiscal year: (a) Consolidated EBITDA for such year; plus
(b) the decrease (if any) in the amount of the excess of Consolidated
Current Assets over Consolidated Current Liabilities at the end of such fiscal
year compared to the amount of the excess of Consolidated Current Assets over
Consolidated Current Liabilities at the end of the immediately preceding fiscal
year of the Parent; minus (c) the sum of the (i) the amount of
(A) all regularly scheduled payments of principal of the Term Loans
actually made during such fiscal year and (B) any permanent reduction in
the Revolving Credit Commitments made during such fiscal year to the extent
that, before giving effect to such reduction, the average outstanding principal
balance of the Revolving Credit Loans for

 

50

 

the thirty (30) days prior to such reduction exceeds the aggregate
Revolving Credit Commitments after giving effect to such reduction,
(ii) the amount of all Consolidated Interest Expense for such fiscal year
for the Credit Parties, (iii) the amount of Capital Expenditures actually
made during such fiscal year by the Credit Parties to the extent permitted by Section 7.11,
(iv) cash income taxes paid by the Credit Parties during such fiscal year
and (v) the increase (if any) in the amount of the excess of Consolidated
Current Assets over Consolidated Current Liabilities at the end of such fiscal
year compared to the amount of the excess of Consolidated Current Assets over
Consolidated Current Liabilities at the end of the immediately preceding fiscal
year of the Parent.

 

“Contractual Obligation” means as to any Person, any provision
of any security issued by such Person or of any agreement, instrument or other
undertaking to which such Person is a party or by which it or any of its
property is bound.

 

“Credit Parties” means each of Parent, AMHC, AMGI, Kenan, KTC,
ATL, NCT, McDaniel, Evalia, Geni Management Corporation, Geni Transport, Inc.,
PCT and any other Subsidiaries.

 

“Domestic Person” means with respect to any natural Person, any
such Person domiciled in the United States, and with respect to any nonnatural
Person any such Person organized under the laws of the United States of
America, any State thereof or the District of Columbia.

 

“Emery Asset Purchase Agreement”  means that certain Agreement for Purchase of Assets of Emery
Transportation, Inc. dated as of July 17, 2000, as amended, by Advantage
Tank Lines, Inc., Emery Transportation, Inc., Emery Oil Company, Inc., Richard
A. Emery, Jr. and Alison Sue Hess.

 

“Employment Agreements” means, collectively, those certain
Employment Agreements, dated as of April 30, 2001, by and between the
Company and each of Dennis Nash, Carl Young and Lee Shaffer and any other
employment agreement hereafter entered into by and between the Company and any
executive officer of the Company.

 

“Environmental Laws” means all federal, state, or local laws,
ordinances, rules, regulations, interpretations and orders of courts or
administrative agencies or authorities relating to pollution or protection of
the environment (including, without limitation, ambient air, surface water,
ground water, land surface, and subsurface strata), and other laws relating to
(i) Polluting Substances or (ii) the manufacture, processing, distribution,
use, treatment, handling, storage, disposal, or transportation of Polluting
Substances.

 

“ERISA” means the Employee Retirement Income Security Act of
1974, as amended and in effect from time to time, and the regulations
promulgated thereunder.

 

“Evalia” means Evalia Acquisition Corp., an Illinois
corporation.

 

51

 

“Event of Bankruptcy” means any of (a) the filing by a Person of
a voluntary petition in bankruptcy under any provision of any bankruptcy law or
a petition to take advantage of any insolvency act, (b) the admission in writing
by the Company of its inability to pay its debts generally as they become due,
(c) the appointment of a receiver or receivers for all or a material part of a
Person’s assets with the consent of such Person, (d) the filing of any
bankruptcy, arrangement or reorganization petition by or, with the consent of a
Person, against such Person under any provision of any bankruptcy law, (e) a
receiver, liquidator or trustee of a Person or a substantial part of its assets
shall be appointed pursuant to the Federal Bankruptcy Code by the order of a
court of competent jurisdiction which shall not be dismissed or stayed within
60 days, or (f) an involuntary petition to reorganize or liquidate a Person
pursuant to the Federal Bankruptcy Code shall be filed against such Person and
shall not be dismissed or stayed within 60 days.

 

“Event of Default” is defined in Section 8.1 of this
Agreement.

 

“Excess Interest” is defined in Section 2.8 of this
Agreement.

 

“First Amendment” means the First Amendment to Note Purchase
Agreement and First Amendment to Warrant Purchase Agreement dated as of
July 17, 2000 by and between AMGI, AMHC and Purchasers.

 

“Fiscal Year” is defined in Section 6.24 of this
Agreement.

 

“GAAP” means generally accepted accounting principles set forth
from time to time in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and
statements and pronouncements of the Financial Accounting Standards Board (or
agencies with similar functions of comparable stature and authority within the
U.S. accounting profession) which are applicable to the circumstances as of the
date of application.

 

“Governing Documents” means as to any Person, its articles or
certificate of incorporation and by-laws, its partnership agreement, its
certificate of formation and operating agreement, and/or the other
organizational or governing documents of such Person.

 

“Governmental Entity” shall mean any foreign or domestic court,
administrative agency or commission or other governmental authority or
instrumentality.

 

“Guaranty” means (i) the guaranty dated the date hereof executed
by Parent, AMHC and each Subsidiary of the Company (other than PCT) in favor of
Purchasers in respect of any of the Senior Subordinated Obligations, as the
same may be amended, restated, modified or extended from time to time and (ii)
the guaranty dated the date hereof executed by PCT of the Company in favor of
Purchasers in respect of any of the Senior Subordinated Obligations, as the
same may be amended, restated, modified or extended from time to time.

 

52

 

“Hazardous Materials” shall mean any (a) toxic or hazardous
materials or substances including, without limitation, any hazardous substance
as defined in CERCLA, as amended; (b) radioactive materials; (c) petroleum
(including crude oil or any fraction thereof), oil and its fractions; and (d)
any other chemical, pollutant, contaminant, substance or waste that is
regulated by any Governmental Entity under any Environmental Law.

 

“Holder” when used in reference to the Senior Subordinated Notes
and/or the Senior Subordinated Obligations, means the Person or Persons who, at
the time of determination, is the lawful owner of all or a portion of each
Senior Subordinated Notes or an obligee of all or a portion of the Senior
Subordinated Obligations.  Unless
otherwise provided in this Agreement, in each instance that the Holders are
required to request or consent in concert to an action, the Holders will be deemed
to have requested or consented to such action if the Holders of a
majority-in-interest of the Senior Subordinated Notes or Senior Subordinated
Obligations so request or consent.

 

“Impositions” is defined in Section 6.9 of this
Agreement.

 

“Indebtedness” means for any Person, without duplication:  (a) all indebtedness, whether or not
represented by bonds, debentures, notes, securities, or other evidences of
indebtedness, for the repayment of money borrowed, (b) all indebtedness
representing deferred payment of the purchase price of property or assets, (c)
all indebtedness under any lease which, in conformity with GAAP, is required to
be capitalized for balance sheet purposes and leases of property or assets made
as a part of any sale and lease-back transaction if required to be capitalized,
(d) all indebtedness under guaranties, endorsements, assumptions, or other
contractual obligations, including any letters of credit, or the obligations in
respect of, or to purchase or otherwise acquire, indebtedness of others, (e)
all indebtedness secured by a Lien existing on property owned, subject to such
Lien, whether or not the indebtedness secured thereby shall have been assumed
by the owner thereof, (f) trade accounts payable more than 120 days past due
(other than trade accounts payable being disputed in good faith by a Credit
Party to the extent recorded and reserved for), and (g) all amendments,
renewals, extensions, modifications and refundings of any indebtedness or
obligations referred to above in (a), (b), (c), (d), (e) or (f), excluding
trade accounts payable in the ordinary course of business and excluding the
Contingent Payments.

 

“Initial Public Offering” The first firm commitment,
underwritten public offering of Common Stock to the general public under the
Securities Act, completed by Parent and resulting in gross proceeds (before
underwriting discounts and commissions) to the Parent of at least $25,000,000
from purchasers thereunder which are not Affiliates of the Parent and which
results in an aggregate valuation of all the outstanding shares of Parent’s
Common Stock on a fully diluted basis immediately prior to the consummation of
such offering of at least $75,000,000 and which results in (i) each holder of
the Parent’s Series A Preferred Stock, each holder of the Parent’s Series B
Preferred Stock and each holder of the Parent’s Series D Preferred Stock
receiving, upon conversion of such Preferred Stock in connection with such
offering, a number of shares of Common

 

53

 

Stock (exclusive of shares of Common Stock representing dividends which
are converted into Common Stock) having a value, based on the initial public
offering price, of at least twice the aggregate Liquidation Amount (as such
term is defined in the Certificate of Designations) of such holder’s respective
shares of Preferred Stock.

 

“Insolvency” means with respect to any
Multiemployer Plan, the condition that such Plan is insolvent within the
meaning of Section 4245 of ERISA.

 

“Intellectual Property” means all patents, patent rights, patent
applications, licenses, inventions, trade secrets, know-how, proprietary
techniques (including processes and substances), trademarks, service marks,
trade names and copyrights.

 

“Inventory” means all present and future inventory in which the
Company has any interest, including, but not limited to, goods held by the
Company for sale or lease or to be furnished under a contract of service and
all of the Company’s present and future raw materials, work in process,
finished goods, supplies and packing and shipping materials, wherever located,
and any documents of title representing any of the above.

 

“IRS” shall mean the Internal Revenue Service.

 

“Kenan” is defined in the preamble of this Agreement.

 

“Kenan Acquisition Transaction” is defined in the recitals of
this Agreement.

 

“Kenan Merger Agreement” is defined in the recitals of this
Agreement.

 

“Key Employees” when referring to the Credit Parties shall mean
Dennis Nash and Carl Young.

 

“Knowledge” means, with respect to any Person, actual knowledge
after reasonable investigation.  A
Person (other than an individual) will be deemed to have “Knowledge” of a
particular fact or matters if any of such Person’s directors, officers or Key
Employees have such Knowledge after reasonable investigation.

 

“KTC” is defined in the preamble of this Agreement.

 

“Leases” mean the collective reference to (i) that certain Lease
Agreement, dated as of March 1, 1999, between AMGI and Freedom
Investments, Inc. (“Freedom”) covering the property on which the
Borrowers’ headquarters are located and (ii) that certain Lease Agreement,
dated as of March 1, 1999, between NCT Development Inc. and (iii) a Lease
Agreement to be entered into by AMGI with Freedom to lease additional space at
4895 Dressler Road, NW, Canton, Ohio at the same per square foot cost and on
other terms identical in all material respects to the Lease Agreement
identified in clause (i).

 

54

 

“Leverage Ratio” means at any time, the ratio of Consolidated
Funded Debt to Consolidated EBITDA for the immediately preceding period of four
consecutive fiscal quarters.

 

“Lien” means any lien, mortgage, security interest, tax lien,
pledge, encumbrance, financing statement, or conditional sale or title
retention agreement, or any other interest in property designed to secure the
repayment of Indebtedness or any other obligation, whether arising by
agreement, operation of law, or otherwise.

 

“Majority Holders” means (a) as of any date of determination
thereof prior to any of the MMLI-A Note, the MMLI-B Note, the MCI Note or the
MPI Note being owned by any Person other than the MassMutual Investors, Holders
which own Senior Subordinated Notes, if any Senior Subordinated Notes are
outstanding, or Senior Subordinated Obligations, if no Senior Subordinated
Notes are outstanding, having an aggregate principal amount equal to seventy
percent (70%) or more of the then outstanding principal amount of all Senior
Subordinated Notes or Senior Subordinated Obligations, as the case may be and
which act without financial benefit to the exclusion of any other Holder, and
(b) as of any date of determination thereof from and after any of the MMLI-A
Note, the MMLI-B Note, the MCI Note or the MPI Note being owned by any Person
other than the MassMutual Investors, Holders which own Senior Subordinated
Notes, if any Senior Subordinated Notes are outstanding, or Senior Subordinated
Obligations, if no Senior Subordinated Notes are outstanding, having an
aggregate principal amount equal to fifty-one percent (51%) or more of the then
outstanding principal amount of all Senior Subordinated Notes or Senior
Subordinated Obligations, as the case may be and which act without financial
benefit to the exclusion of any other Holder.

 

“Management Agreement” shall mean, collectively, (i) that certain Amended
and Restated Management Agreement, dated as of April 30, 2001, by and
among Sterling Ventures Limited, Parent, AMGI and KTC Acquisition Corp., (ii)
that certain Management Agreement, dated as of April 30, 2001, by and
among Sterling Investment Partners Advisors, LLC, Parent, AMGI and KTC
Acquisition Corp. and (iii) that certain Management Agreement, dated as of
April 30, 2001, by and among RFE Management Corporation, Parent, AMGI and
KTC Acquisition Corp.

 

“Management Options” means options (a) to purchase Common
Stock issued to Dennis Nash and Carl Young pursuant to that certain Amended and
Restated Senior Management Option Agreement dated as of the date hereof
executed by the Parent in favor of such Persons, or (b) to be issued to
employees of the Company pursuant to a stock option or benefit plan of the
Parent described in Section 7.15 of this Agreement approved by a
majority of the disinterested members of the Board of Directors of the Parent.

 

“MassMutual Investors” is defined in the preamble of this
Agreement.

 

“Material Adverse Effect” means (a) a material adverse effect
upon the business, operations, properties, assets or condition (financial or
otherwise) of the Credit Parties taken as a whole or (b) the impairment of the
ability of any Credit Party to perform their respective obligations under the
Agreement or any of the Other Agreements to which it is

 

55

 

a party or of Purchasers to enforce or collect any of the Senior
Subordinated Obligations.  In
determining whether any individual event would result in a Material Adverse
Effect, notwithstanding that such event does not of itself have such effect, a
Material Adverse Effect shall be deemed to have occurred if the cumulative
effect of such event and all other then existing events would result in a
Material Adverse Effect.

 

“Maximum Rate” is defined in Section 2.8 of this
Agreement.

 

“McDaniel” means J. McDaniel, Inc., an Illinois corporation.

 

“MCI” is defined in the preamble of this Agreement.

 

“MCI Note” is defined in Section 1.2(c) of this
Agreement.

 

“MMLI” is defined in the preamble of this Agreement.

 

“MMLI-A Note” is defined in Section 1.2(b) of this
Agreement.

 

“MMLI-B Note” is defined in Section 1.2(b) of this
Agreement.

 

“MPI” is defined in the preamble of this Agreement.

 

“MPI Note” is defined in Section 1.2(d) of this
Agreement.

 

“Multiemployer Plan” means a Plan which is a multiemployer plan
as defined in Section 4001(a)(3) of ERISA.

 

“Net Proceeds”  (i) the
aggregate cash consideration received by any of the Credit Parties in
connection with any transaction referred to in Section 2.3(b) less (ii)
the expenses (including out-of-pocket expenses) incurred by such Credit Party
in connection with such transaction (including, in the case of any issuance of
debt or equity securities, underwriters’ commissions and fees), the amount of
any federal and state taxes incurred in connection with such transaction, any
amounts required to be placed in escrow in connection with such transaction and
any amounts the Parent reasonably determines are required to meet post-closing
purchase price adjustments in connection with such transaction, in each case as
certified by the chief financial officer of the Parent to the Purchasers at the
time of such transaction; provided, that any amounts placed in escrow or
initially excluded from Net Proceeds to meet such post-closing purchase price
adjustments which are released to the Company or determined not to be payable
by the Company shall become Net Proceeds once such amounts are so released or
determined not to be payable and shall thereupon be applied in accordance with
Section 2.3 hereof.

 

“NCT” means North Canton Transfer Co., and its wholly and
partially owned Subsidiaries.

 

56

 

“Non-Compete Agreements” means collectively, those certain
Non-Compete Agreements by and between the AMHC and each of Rex Molder and
Jeffrey Rabbit.

 

“Original Acquisition Agreement”  means that certain Agreement and Plan of Merger dated as of
December 31, 1998 by and among the AMHC, AMGI, Advantage Acquisition
Corp., Rex Molder, Dennis Nash, Jeffrey Rabbit and Carl Young.

 

“Original Agreement” means that certain Note Purchase Agreement
dated as of December 31, 1998 by and among AMGI (AMGI formerly was known
as Advantage Acquisition Corp., an Ohio corporation (“AAC”) which was
the successor-in-interest to the merger of Advantage Management Group, Inc., an
Ohio corporation with and into AAC), and RSTW, as amended by that certain First
Amendment.

 

“Original Closing Date” means December 31, 1998.

 

“Other Agreements” means the Senior Subordinated Notes, the
Warrant Documents, the Put Guaranty, the Guaranty, the Escrow Agreement and all
other agreements, instruments and documents (including, without limitation,
notes, guarantees, powers of attorney, consents, assignments, contracts,
notices, subordination agreements and all other written matter), and all
renewals, modifications and extensions thereof, whether heretofore, now or
hereafter executed by or on behalf of any Credit Party and delivered to and for
the benefit of Purchasers or any Person participating with Purchasers in the
Senior Subordinated Notes with respect to this Agreement or any of the
transactions contemplated by this Agreement.

 

“Parent” is defined in the preamble of this Agreement.

 

“PCT” means Petro-Chemical Transport, Inc., a Texas corporation.

 

“PBGC”  means the United
States Pension Benefit Guaranty Corporation.

 

“Permitted Indebtedness” means (a) any Indebtedness in favor of
the Senior Lender under the Senior Loan Agreement and created pursuant thereto
but only to the extent that the same constituted Senior Debt at the time that
it was incurred, (b) any Indebtedness in favor of Purchasers under this
Agreement and/or the Other Agreements and created pursuant thereto, (c)
presently existing or hereafter arising purchase money Indebtedness incurred by
the Company to finance the acquisition of capital assets by the Company,
subject to the limitations placed on Capital Expenditures in Section 7.11,
(d) Indebtedness in an aggregate amount not to exceed $500,000 at any time
outstanding secured by a Lien on accounts receivable, tangible assets or
Inventory of Subsidiaries of the Company, (e) the Contingent Payments, provided
that with respect to the Contingent Payment under the Original Acquisition
Agreement payment thereunder is made in accordance with the Seller
Subordination Agreement,  (f) the
other Indebtedness set forth on Exhibit D, (g) Indebtedness of any
Credit Party to any other Credit Party and (h) any Indebtedness under Interest
Rate Protection Agreements (as such term is defined the Senior Loan Agreement)
required under Section 8.12 of the Senior Loan Agreement.

 

57

 

“Permitted Investments” means the following:

 

(a)                                  securities issued or
directly and fully guaranteed or insured by the United States Government or any
agency or instrumentality thereof (provided that the full faith and credit of
the United States Government is pledged in support thereof), having maturities
of not more than twelve months from the date of acquisition;

 

(b)                                 time deposits and
certificates of deposit of any commercial bank incorporated in the United
States of recognized standing having capital and surplus in excess of
$100,000,000 with maturities of not more than twelve months from the date of
acquisition and rated AA- (or the equivalent thereof) or higher by Standard
& Poor’s Corporation with respect to its long-term senior debt;

 

(c)                                  commercial paper
issued by any Person incorporated in the United States rated at least A-1 or
the equivalent thereof by Standard & Poor’s Corporation or at least P-1 or
the equivalent thereof by Moody’s Investors Service, Inc. and in each case
maturing not more than twelve months after the date of acquisition;

 

(d)                                 investments in money
market funds substantially all of whose assets are comprised of securities of
the types described in clauses (a) through (c) above; and

 

(e)                                  investments in, or
debts incurred or liabilities assumed on behalf and for the benefit of, the
Subsidiaries or joint ventures or companies in which the Company owns at least
50% of the voting rights thereof, which investments, debts incurred and
liabilities assumed (i) do not exceed $500,000 per year in the aggregate and
(ii) do not exceed $1,000,000, from and after the Closing Date in the
aggregate; notwithstanding and in addition to the foregoing the Company shall
be permitted to make advances and capital contributions to each of its
Subsidiaries which at such time is a guarantor of the Senior Subordinated
Obligation pursuant to the Guaranty, and each such Subsidiary shall be
permitted to make advances and capital contributions to the Company, if such
advances are consistent with the policies of the Company’s board of directors.

 

“Permitted Liens” means (a) Liens in favor of the Senior Lender
under the Senior Loan Documents or created pursuant thereto, (b) Liens
securing purchase money Indebtedness incurred to finance the acquisition of
capital assets by the Company, subject to the limitations placed on Capital
Expenditures in Section 7.11 hereof, but not encumbering any assets
other than those acquired with the proceeds of such purchase money
Indebtedness, (c) Liens for property taxes not yet due, or which are being
contested in good faith by appropriate proceedings provided that adequate
reserves with respect thereto are maintained on the applicable Credit Party’s
books in conformity with GAAP, (d) materialmen’s, mechanics’, worker’s,
repairmen’s, employees’ or other like Liens arising against a Credit Party in
the ordinary course of business, in each case which are either not delinquent
or are being contested in good faith and by appropriate proceedings conducted
with due diligence and for the payment of which adequate reserves have been
established by the Credit Party, (e) deposits to secure payment of
worker’s compensation,

 

58

 

unemployment insurance or other social security benefits,
(f) easements, rights of way, restrictions and other similar encumbrances
incurred in the ordinary course of business which, in the aggregate, are not
substantial in amount and which do not in any case materially detract from the
value of the property subject thereto or materially interfere with ordinary
conduct of the business of any Credit Party thereof, (g) Liens disclosed on Exhibit
E, and (h) any interest or title of a lessor under any lease entered into
by a Credit Party in the ordinary course of business (excluding sale/ leaseback
transactions) and covering only the leased asset.

 

“Person” means any individual, sole proprietorship, corporation,
business trust, unincorporated organization, association, company, partnership,
joint venture, governmental authority (whether a national, federal, state,
county, municipality or otherwise, and shall include without limitation any
instrumentality, division, agency, body or department thereof), or other
entity.

 

“Polluting Substances” means all pollutants, contaminants,
chemicals, or industrial, toxic or hazardous substances or wastes and shall
include, without limitation, any flammable explosives, radioactive materials,
oil, petroleum (including crude oil or any fraction thereof) hazardous
materials, hazardous or solid wastes, hazardous or toxic substances or related
materials defined in the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, the Superfund Amendments and Reauthorization Act of
1986, the Resource Conservation and Recovery Act of 1976, the Hazardous and
Solid Waste Amendments of 1984, and the Hazardous Materials Transportation Act,
as any of the same are hereafter amended, and in the regulations adopted and
publications promulgated thereto; provided, in the event any of the
foregoing Environmental Laws is amended so as to broaden the meaning of any
term defined thereby, such broader meaning shall apply subsequent to the
effective date of such amendment and, provided, further, to the
extent that the applicable laws of any state establish a meaning for “hazardous
substance,” “hazardous waste,” “hazardous material,” “solid waste,” or “toxic
substance” which is broader than that specified in any of the foregoing
Environmental Laws, such broader meaning shall apply.

 

“Plan” means at a particular time, any employee benefit plan
which is covered by ERISA and in respect of which the Company or a Commonly
Controlled Entity is (or, if such plan were terminated at such time, would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in
Section 3(5) of ERISA.

 

“Potential Default” means the occurrence of any condition or
event which, with the passage of time or giving of notice or both, would
constitute an Event of Default.

 

“Preferred Stock” means the $.001 par value Series A Convertible
Preferred Stock, Series B Convertible Preferred Stock, Series C Convertible
Preferred Stock and Series D Convertible Preferred Stock of the Parent, as
specified in the Certificate of Designation.

 

“Premium Percentage” means, with respect to any payment or
prepayment made or required of the Company under Section 2.2, Section 2.3,
or Section 8.2, the premium

 

59

 

percentage set forth below which corresponds to the earliest date set
forth below upon which such payment or prepayment, as the case may be, is made
or required pursuant to such section of the Agreement:

 

	
  Payment Date or Prepayment Date

  	
   

  	
  Premium
  Percentage

  
	
  Closing Date through April 30, 2002

  	
   

  	
  5.00%

  
	
  May 1, 2002, through April 30, 2003

  	
   

  	
  4.00%

  
	
  May 1, 2003, through April 30, 2004

  	
   

  	
  3.00%

  
	
  May 1, 2004, through April 30, 2005

  	
   

  	
  2.00%

  
	
  May 1, 2005, through April 30, 2006

  	
   

  	
  1.00%

  
	
  May 1, 2006 and thereafter

  	
   

  	
  0.00%

  

 

“Prepayment Fee” means and includes (a) the premium payable by
the Company to Purchaser under subclause (c) of the first sentence of Section 2.2
in the event of a prepayment under Section 2.2, (b) the premium
payable by the Company to Purchaser under Section 2.3, as a result
of the occurrence of an event described in Section 2.3, and (c) the
premium payable by the Company to Purchaser under Section 8.2 under
any of the circumstances which require the payment of a premium by the Company
to Purchaser under Section 8.2.

 

“Pro Forma” is defined in Section 4.2 of this
Agreement.

 

“Property” means all real property owned, leased or operated by
the Company.

 

“Purchasers” means RSTW Partners III, L.P. and the MassMutual
Investors, together with all of their transferees, successors and assigns of all
or any portion of the Senior Subordinated Notes or the Senior Subordinated
Obligations and any nominees on whose behalf any of the foregoing purchase or
otherwise acquire any of such Indebtedness of the Company, and shall include,
but not be limited to, each and every “Holder” as defined herein.

 

“Put Event Exercise Payment Default” means any failure of
payment or other default by the Parent, AMHC, the Company, or any Subsidiary in
the obligation to purchase all or such portion of the Put Shares (as defined in
the Warrant Purchase Agreement) as to which any holder of Put Shares (as
defined in the Warrant Purchase Agreement) exercised its Put Option (as defined
in the Warrant Purchase Agreement) pursuant to subclause (a), (b), (c), (d),
(e), (f), (g), (h), (i), (j) or (k) of Section 2.10 of the Warrant
Purchase Agreement.

 

“Put Guaranty” means (i) the guaranty of AMHC, the Company and
each Subsidiary (other than PCT) of the obligations of the Parent under the
Warrant Documents and (ii) the guaranty of PCT of the obligations of the Parent
under the Warrant Documents .

 

60

 

“Registration Rights Agreement” means that certain Registration
Rights Agreement dated the date hereof among the Parent, the Purchasers and the
other signatories thereto, as the same may be modified, amended, extended or
restated from time to time.

 

“Release” means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaking, dumping or
disposing of a Hazardous Material into the environment or any action or
inaction that results in a Hazardous Material coming to be located in the
environment.

 

“Reorganization” means with respect to any Multiemployer Plan,
the condition that such plan is in reorganization within the meaning of
Section 4241 of ERISA.

 

“Reportable Event” means any of the events set forth in
Section 4043(b) of ERISA, other than those events as to which the thirty
day notice period is waived under Sections .21, .22, .23, .26, .27 or .28
of PBGC Reg. § 4043.

 

“Revolving Credit Loans” means revolving loans made by Senior
Lender pursuant to Section 3.1 of the Senior Loan Agreement.

 

“RFE” means, collectively, RFE Investment Partners VI, L.P., a
Delaware limited partnership, and RFE VI SBIC, L.P., a Delaware limited
partnership.

 

“RSTW” is defined in the preamble of this Agreement.

 

“RSTW 1998 Note” means that certain senior subordinated note
dated on or about December 31, 1998, executed by AMGI and AAC as makers
and payable to RSTW in the original principal amount of $12,000,000, pursuant
to the Original Agreement.

 

“RSTW 2000 Note” means that certain senior subordinated note
dated on or about September 25, 2000, executed by AMGI as maker and
payable to RSTW in the original principal amount of $1,250,000, pursuant to the
Original Agreement..

 

“RSTW Amended 1998 Note” is defined in Section 1.2(e)(i)
of this Agreement.

 

“RSTW Amended 2000 Note” is defined in Section 1.2(e)(ii)
of this Agreement.

 

“RSTW New Note” is defined in Section 1.2(a) of this
Agreement.

 

“Securities Act” means the Securities Act of 1933, as amended,
and rules and regulations thereunder.

 

“Sellers” means, collectively, Dennis Nash, Carl Young, Rex
Molder and Jeffrey Rabbitt.

 

“Seller Subordination Agreement” means (i) that certain Seller
Subordination Agreement dated as of December 31, 1998 executed by the
Company, RSTW and the Sellers pursuant to which the relative priorities of the
Sellers and Purchasers with respect to the

 

61

 

payment of any Contingent Payments and the repayment of the Senior
Subordinated Obligations are established and (ii) that certain Amended and
Restated Seller Subordination Agreement of even date herewith executed by the
Company, Dennis Nash, Carl Young and Purchasers pursuant to which the relative
priorities of the Sellers and Purchasers with respect to the payment of any
Contingent Payments and the repayment of the Senior Subordinated Obligations
are established.

 

“Senior Debt” means the principal amount of any Indebtedness of
the Company and its Subsidiaries for borrowed money under the Senior Loan
Documents, now or hereafter outstanding, together with any interest (including
any post-petition interest accruing after the commencement of any case,
proceeding or other action relating to the bankruptcy, insolvency or
reorganization of the Company at the interest rate provided for in the Senior
Loan Agreement, whether or not such interest is an allowable claim in any such
proceeding) or premium due thereon and any other amount payable with respect
thereto, provided that:

 

(i)                                     in
no event shall the aggregate principal amount of Senior Debt exceed an amount
equal to the sum of:

 

(a) an amount equal to (1) the lesser of
(A) $105,000,000 or (B)  an amount equal to the sum of (x) up to
$15,000,000 of Revolving Credit Loans, plus (y) up to $90,000,000 of Term
Loans, minus (2) the aggregate amount of any permanent reductions in the
maximum committed amount of the Revolving Credit Loans, minus (3) the
aggregate amount of any and all principal payments or prepayments from time to
time made in respect of the Term Loans; plus

 

(b) the sum of (I) an amount representing indebtedness
incurred only in connection with a “workout” as determined by the Senior Lender
in its good faith judgement following notice to the Holders in an aggregate
amount which does not exceed the greater of (A) $4,250,000 or (B) 10%
of the principal amount of the loans described in subparagraph (a) above
(subject to the limitations therein) which are outstanding on the first date
(the “Reference Date”) upon which there occurs the earlier of (x) the
Holders’ receipt of a Stop Payment Notice (as such term is defined in the
Senior Subordination Agreement) under the Senior Subordination Agreement from
the Senior Lender or (y) the occurrence of a default in the payment of
principal or interest under the Senior Loan Agreement, minus (II) the
amount of any fees, expenses or other obligations or liabilities (other than
principal and interest) under the Senior Loan Documents which are outstanding
at or incurred after the Reference Date;

 

(ii)                                  in no event shall
Senior Debt include (a) any indebtedness of any Person which, by its terms, by
the terms of the instrument creating or evidencing it, by contract or
otherwise, is subordinate in right of payment to any other indebtedness of any
Person or (b) any trade debt of the Company, whether or not initially owing to
any Person other than the Senior Lender under the Senior Loan Agreement (or
under the agreements, documents and instruments related to any refinancing
thereof) and subsequently acquired by the Senior Lender.

 

62

 

Senior Debt shall also include any
Indebtedness of the Company incurred in connection with a refinancing of the
Senior Debt under the Senior Loan Documents if the terms and conditions of the
agreements, documents and instruments related to such refinancing, taken as a
whole, are not materially more onerous to the Holders than those set forth in
the Senior Loan Documents, as in effect on the date hereof.  Senior Debt shall continue to constitute
Senior Debt notwithstanding the fact that such Senior Debt or any claim for
such Senior Debt is involuntarily subordinated, avoided or disallowed under the
Federal Bankruptcy Code or any other applicable law.

 

“Senior Lender” means the Lenders under the Senior Loan
Agreement, and their successors and assigns, and any Person who replaces or
refinances the Senior Debt under the terms set forth in Section 7.1(c).

 

“Senior Loan Agreement” means the Amended and Restated Credit
Agreement among the Parent, the Company and the Senior Lender, dated as of
April 30, 2001, as amended to the extent permitted under Section 7.8,
and all documents and instruments delivered pursuant thereto in connection with
the loans and advances made thereunder.

 

“Senior Loan Documents” means the Senior Loan Agreement and the
agreements, documents and instruments executed in connection therewith or
contemplated thereby, and all amendments thereto, to the extent permitted under
Section 7.8, together with all substitutions therefor with
replacement of Senior Debt under Section 7.1(c).

 

“Senior Subordinated Notes” means collectively the RSTW New
Note, the MMLI-A Note, the MMLI-B Note, the MCI Note, the MPI Note, the RSTW
Amended 1998 Note and the RSTW Amended 2000 Note.

 

“Senior Subordinated Obligations” means and includes any and all
Indebtedness and/or liabilities of the Company to Purchasers of every kind,
nature and description, direct or indirect, secured or unsecured, joint,
several, joint and several, absolute or contingent, due or to become due, now
existing or hereafter arising, under this Agreement or any Other Agreement
(regardless of how such Indebtedness or liabilities arise or by what agreement
or instrument they may be evidenced or whether evidenced by any agreement or
instrument) and all obligations of the Company to Purchasers to perform acts or
refrain from taking any action under any of the aforementioned documents,
together with all renewals, modifications, extensions, increases, substitutions
or replacements of any of such Indebtedness; provided, however,
that such defined term shall not include the monetary obligations of the Parent
under the put option or the call option in respect of the Warrant under the
Warrant Documents or the obligation of AMHC, the Company and its Subsidiaries
under the Put Guaranty until such time as Purchasers shall have notified the
Parent of its exercise of such put option as provided in the Warrant Documents,
or the Parent shall have notified Purchasers of its exercise of such call
option, as the case may be.

 

63

 

“Senior Subordination Agreement” means that certain Senior
Subordination Agreement of even date herewith executed by the Company, the
Senior Lender and Purchasers pursuant to which the relative priorities of the
Senior Lender and Purchasers with respect to the repayment of Senior Debt and
the Senior Subordinated Obligations are established.

 

“Single Employer Plan” means any Plan which is covered by Title
IV of ERISA, but which is not a Multiemployer Plan.

 

“Sterling” means Sterling Investment Partners, L.P., a Delaware
limited partnership.

 

“Sterling Principals” means M. William Macey, Jr., Douglas
Newhouse, Charles W. Santoro and William L. Selden.

 

“Stockholders’ Agreement” means that certain Stockholders’
Agreement dated as of the date hereof among the Parent, the Purchasers and the
other parties thereto, as the same may be amended, modified, extended or restated
from time to time.

 

“Subsidiary” means any Person of which or in which the Company
and its other Subsidiaries own directly or indirectly a majority of (a) the
combined voting power of all classes of Capital Stock having general voting
power under ordinary circumstances to elect a majority of the board of
directors or equivalent body of such Persons, if it is a corporation, (b) the
capital interest or profits interest of such Person, if it is a partnership,
joint venture or similar entity, or (c) the beneficial interest of such Person
if it is a trust, association or other unincorporated organization.

 

“Term Loans” means, collectively, the term loans made by Senior
Lender pursuant to Sections 2.1, 2.4 and 2.7 of the Senior Loan Agreement.

 

“Termination Date” means the earliest to occur of (a)
April 30, 2009, (b) the date on which the Senior Subordinated Notes are
accelerated pursuant to Article VIII, or (c) the date on which the
Senior Subordinated Obligations are paid in full.

 

“Transfer” is defined in Section 12.5 of this
Agreement.

 

“Transferee” means any Person to whom a Transfer is made.

 

“Warrants” means the warrants issued to Purchasers or converted
pursuant to the Advantage Merger Agreement to purchase shares of Series D
Convertible Preferred Stock and, under certain circumstances, shares of Common
Stock, all as adjusted for antidilution adjustments as provided in the Warrant
Purchase Agreement, as the same may be amended from time to time.

 

“Warrant Documents” means, collectively, (a) the Warrants, (b)
the Warrant Purchase Agreement, (c) the Stockholders’ Agreement, (d) and
the Registration Rights Agreement, as each of the foregoing may be amended from
time to time.

 

64

 

“Warrant Purchase Agreement” means that certain Warrant Purchase
Agreement dated the date hereof between the Parent and the Purchasers with
respect to the issuance to Purchasers of the Warrants as the same may be
amended, modified, restated or extended from time to time.

 

11.2                           Accounting Principles.  Where the character or amount of any asset
or liability or item of income or expense is required to be determined or any
consolidation or other accounting computation is required to be made for the
purposes of this Agreement, the same shall be done, unless specified otherwise,
in accordance with GAAP, except where such principles are inconsistent with the
requirements of this Agreement.  Unless
otherwise indicated in this Agreement all accounting terms used in this
Agreement shall be construed, and all accounting and financial information or
computations shall be prepared or computed, in accordance with GAAP.  If GAAP changes during the term of this
Agreement such that any covenants contained herein would then be calculated in
a different manner or with different components, the Company and Purchasers
agree to negotiate in good faith to amend this Agreement in such respects as is
necessary to conform those covenants as criteria for evaluating the Company’s
financial condition to substantially the same criteria as were effective before
such change in GAAP, provided, however, that until the Company
and Purchasers so amend this Agreement, all such covenants shall be calculated
in accordance with GAAP as in effect on the date of this Agreement.

 

11.3                           Other
Interpretive Provisions. 
Where any provision in this Agreement refers to action to be taken by
any Person, or which such Person is prohibited from taking, such provision
shall be applicable whether the action in question is taken directly or indirectly
by such Person.  The words “herein,”
“hereof,” “hereto,” “hereunder” and similar forms refer to this Agreement as a
whole and not to any particular provision of this Agreement and subsection,
section, and exhibit references are to this Agreement unless otherwise
specified.  The word “or” shall not be
exclusive; the singular includes the plural and the plural includes the
singular; and the word “including” is not limiting and means “including without
limitation”.  References to this
Agreement or any of the Other Agreements shall mean the Agreement or such of
the Other Agreements, as the case may be, as amended, modified, supplemented or
extended from time to time and any number of substitutions, renewals and
replacements thereto or therefor. 
References to governmental laws, statutes, ordinances, rules and
regulations shall be construed as including all amendments, consolidations and
replacements thereof or therefor.

 

XII.                            MISCELLANEOUS

 

12.1                           Expenses.  The Company agrees to pay (a) all
out-of-pocket expenses of Purchasers (including reasonable fees, expenses and
disbursements of the Purchasers’ counsel) in connection with the preparation,
negotiation, enforcement, operation and administration of this Agreement, the
Senior Subordinated Notes, the Other Agreements, or any documents executed in
connection therewith, or any waiver, modification or amendment of any provision
hereof or thereof; (b) on or before the Closing Date, $2,500 to cover the NAIC
filing requirements; and (c) if an Event of Default occurs, all court costs and
costs of collection, including, without limitation, reasonable fees, expenses
and disbursements of counsel employed in connection with any and all collection
efforts.  The attorneys’ fees arising
from such services, including those of

 

65

 

any appellate proceedings, and all expenses, costs, charges and other
fees incurred by such counsel in any way or respect arising in connection with
or relating to any of the events or actions described in this Article XII
shall be payable by the Company to Purchasers, on demand, and shall be
additional Senior Subordinated Obligations under this Agreement.  Without limiting the generality of the
foregoing, such expenses, costs, charges and fees may include: recording costs,
appraisal costs, paralegal fees, costs and expenses; accountants’ fees, costs
and expenses; court costs and expenses; photocopying and duplicating expenses;
court reporter fees, costs and expenses; long distance telephone charges; air
express charges, telegram charges; facsimile charges; secretarial overtime
charges; and expenses for travel, lodging and food paid or incurred in
connection with the performance of such legal services.  The Company agrees to indemnify Purchasers
from and hold them harmless against any documentary taxes, assessments or
charges made by any governmental authority by reason of the execution and
delivery by the Company or any other Person of this Agreement, the Other
Agreements, and any documents executed in connection therewith.

 

12.2                           Indemnification.  In addition to and not in limitation of the
other indemnities provided for herein or in any Other Agreements, the Company
hereby indemnifies and holds harmless Purchasers and any other Holders, and
every Affiliate of any of the foregoing, and their respective officers,
directors, employees and agents, from any claims, actions, damages, costs,
attorneys’ fees and expenses (including any of the same arising out of the sole
or contributory negligence of the Person to be indemnified) to which any of
them may become subject, insofar as such losses, liabilities, claims, actions,
damages, costs and expenses arise from or relate to this Agreement or the Other
Agreements, or any of the transactions contemplated thereby, or from any
investigation, litigation, or other proceeding, including, without limitation,
any threatened investigation, litigation or other proceeding relating to any of
the foregoing, or from any violation or claim of violation of any applicable
environmental laws with respect to any real or personal property, or from any
governmental or judicial claim, order or judgment with respect to any real or
personal property of the Company, or from any breach of the warranties,
representations or covenants contained in this Agreement or the Other
Agreements.  The foregoing
indemnification includes any such claims, actions, damages, costs, and expenses
incurred by reason of the sole or contributory negligence of the Person to be
indemnified, but excludes any of the same incurred by reason of such Person’s
gross negligence or willful misconduct.

 

12.3                           Notices.  Except as otherwise expressly provided
herein, all communications provided for hereunder shall be in writing and
delivered or mailed by the United States mails, certified mail, return receipt
requested, (a) if to Purchasers, addressed to Purchasers at the address(es)
specified on Annex I hereto or to such other address as Purchasers may
in writing designate, (b) if to any other Holder, addressed to RSTW, as representative
for purposes of receiving notice for all other Holders, for so long as RSTW
remains a Holder, and thereafter addressed to such Holder at such address as
such Holder may in writing designate, and (c) if to the Company, addressed to
the Company at the address set forth below its name on the signature pages
hereto or to such other address as the Company may in writing designate with
copies of any and all such notices to be sent to Purchasers and Sterling
Investment Partners Management, LLC (at its address set forth on the signature
page hereto) in the manner provided for in this Section 12.3.  Notices shall be deemed to have been validly
served, given or delivered (and “the

 

66

 

date of such notice” or words of similar effect shall mean the date)
five days after deposit in the United States mails, certified mail, return
receipt requested, with proper postage prepaid, or upon actual receipt thereof
(whether by noncertified mail, telecopy, telegram, express delivery or
otherwise), whichever is earlier.

 

12.4                           Reproduction of Documents.  This Agreement and all documents relating
hereto, including, without limitation (a) consents, waivers and modifications
which may hereafter be executed, (b) documents received by Purchasers at the
closing of the purchase of the Senior Subordinated Notes, and (c) financial
statements, certificates and other information previously or hereafter
furnished to Purchasers, may be reproduced by Purchasers by any photographic,
photostatic, microfilm, microcard, miniature photographic or other similar
process and Purchasers may destroy any original document so reproduced.  The Company agrees and stipulates that any
such reproduction which is legible shall be admissible in evidence as the
original itself in any judicial or administrative proceeding (whether or not
the original is in existence and whether or not such reproduction was made by
you in the regular course of business) and that any enlargement, facsimile or
further reproduction of such reproduction shall likewise be admissible in
evidence; provided that nothing herein contained shall preclude the Company
from objecting to the admission of any reproduction on the basis that such
reproduction is not accurate, has been altered, is otherwise incomplete or is
otherwise inadmissible.

 

12.5                           Assignment,
Sale of Interest.  The Company may
not sell, assign or transfer this Agreement, or the Other Agreements or any
portion thereof, including, without limitation, the Company’s rights, title,
interests, remedies, powers and/or duties hereunder or thereunder.  The Company hereby consents to Purchasers’
participation, sale, assignment, transfer or other disposition (collectively “Transfer”),
at any time or times hereafter, of this Agreement, or the Other Agreements to
which the Company is a party, or of any portion hereof or thereof, including,
without limitation, Purchasers’ rights, title, interests, remedies, powers
and/or duties hereunder or thereunder to any Person(s) other than any Person which
the Board of Directors of the Parent, in its good faith sole discretion,
determines is a direct competitor of the Company; provided, however,
the Holders may Transfer to any Person if an Event of Default has occurred and
is continuing under Section 8.1(a)).  In connection with any Transfer, the Company agrees to cooperate
fully with Purchasers and any potential Transferee.  Such cooperation shall include, but is not limited to,
cooperating with any audits or other due diligence investigation undertaken by
any potential Transferee. 
Notwithstanding anything herein to the contrary, Purchasers and such
Transferee shall bear their own expenses (including without limitation fees and
expenses of counsel and of any audit or other due diligence examination) in connection
with any such transfer.

 

12.6                           Successors and Assigns.  This Agreement will inure to the benefit of
and be binding upon the parties hereto and their respective successors and
assigns.

 

12.7                           Headings.  The headings of the sections and subsections
of this Agreement are inserted for convenience only and do not constitute a
part of this Agreement.

 

67

 

12.8                           Counterparts.  This Agreement may be executed
simultaneously in two or more counterparts, each of which shall be deemed an
original, and it shall not be necessary in making proof of this Agreement to
produce or account for more than one such counterpart or reproduction thereof
permitted by Section 12.4.

 

12.9                           Reliance
on and Survival Provisions. 
All covenants, representations and warranties made by the Company herein
and in any certificates delivered pursuant hereto, whether or not in connection
with a closing, (a) shall be deemed to be material and to have been relied upon
by Purchasers, notwithstanding any investigation heretofore or hereafter made
by Purchasers or on Purchasers’ behalf, and (b) shall survive the delivery of
this Agreement and the Senior Subordinated Notes until all obligations of the
Company under this Agreement shall have been satisfied.

 

12.10                     Integration
and Severability.  This Agreement
embodies the entire agreement and understanding between Purchasers and the
Company, and supersedes all prior agreements and understandings relating to the
subject matter hereof including, but not limited to (a) that certain commitment
letter of RSTW, dated January 25, 2001, executed by RSTW, and acknowledged
and agreed to by Parent and the Company, and (b) that certain commitment letter
of the MassMutual Investors, dated January 24, 2001, executed by the
MassMutual Investors, and acknowledged and agreed to by Parent and AMHC.  In case any one or more of the provisions
contained in this Agreement or in any Senior Subordinated Notes, or any
application thereof, shall be invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein and therein, and any other application thereof, shall not in any way be
affected or impaired thereby.

 

12.11                     Law
Governing.  THIS
AGREEMENT, THE SENIOR SUBORDINATED NOTES, THE WARRANT PURCHASE AGREEMENT AND
THE WARRANT HAVE BEEN SUBSTANTIALLY NEGOTIATED AND ARE BEING EXECUTED,
DELIVERED, AND ACCEPTED, AND ARE INTENDED TO BE PERFORMED, IN PART IN THE STATE
OF NEW YORK.  ALL OBLIGATIONS, RIGHTS
AND REMEDIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  IF, NOTWITHSTANDING THE CHOICE OF LAW BY THE PARTIES AS SET FORTH
IN THE IMMEDIATELY PRECEDING SENTENCE, A COURT DECLINES TO GIVE EFFECT TO SUCH
CHOICE OF LAW FOR ANY REASON, THEN ALL OBLIGATIONS, RIGHTS AND REMEDIES
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF OHIO. 
PURCHASERS RETAIN ALL RIGHTS UNDER THE LAWS OF THE UNITED STATES OF
AMERICA, INCLUDING THOSE RELATING TO THE CHARGING OF INTEREST.

 

12.12                     Waivers; Modification.  UNLESS OTHERWISE STATED HEREIN, NO PROVISION
OF THIS AGREEMENT MAY BE WAIVED, CHANGED, AMENDED OR MODIFIED, OR THE DISCHARGE
THEREOF ACKNOWLEDGED, ORALLY, BUT ONLY BY AN AGREEMENT IN WRITING SIGNED BY THE
HOLDERS OF THE REQUISITE AMOUNT OF SENIOR SUBORDINATED OBLIGATIONS SPECIFIED

 

68

 

WITH RESPECT TO THE
PROVISION FOR WHICH ANY WAIVER, CHANGE, MODIFICATION OR DISCHARGE IS SOUGHT,
AND SUCH WAIVER, CHANGE, AMENDMENT OR MODIFICATION SHALL BE EFFECTIVE ONLY IN
THE SPECIFIC INSTANCE AND FOR THE SPECIFIC PURPOSE FOR WHICH IT IS GIVEN; PROVIDED,
HOWEVER, THAT ANY CHANGE, AMENDMENT OR MODIFICATION OF, OR WAIVER OF
COMPLIANCE WITH ANY OF THE PROVISIONS OF THIS SECTION 12.12, THE
DEFINITION OF MAJORITY HOLDERS OR ANY TERMS AFFECTING THE MATURITY OF OR ANY
OTHER DATES FOR PAYMENT, INTEREST RATES OR SUBORDINATION PROVISIONS SHALL
REQUIRE THE WRITTEN AGREEMENT OF EACH HOLDER.

 

12.13                     Waiver of Jury Trial.  TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, THE COMPANY AND PURCHASERS HEREBY IRREVOCABLY AND EXPRESSLY
WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED UPON CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO
THIS AGREEMENT, THE SENIOR SUBORDINATED NOTES OR ANY DOCUMENTS ENTERED INTO IN
CONNECTION THEREWITH OR THE TRANSACTIONS CONTEMPLATED THEREBY OR THE ACTIONS OF
PURCHASERS IN THE NEGOTIATION, ADMINISTRATION, OR ENFORCEMENT THEREOF.

 

12.14                     Amendment and Restatement.  This Agreement is given in amendment,
restatement, modification and extension, but not in extinguishment or novation,
of the Original Agreement and the indebtedness, liabilities and other
obligations of the parties thereunder. 
With respect to matters relating to the period prior to the date hereof,
all of the provisions of the Original Agreement are hereby ratified and
confirmed and shall remain in full force and effect.

 

[REMAINDER
OF THIS PAGE INTENTIONALLY BLANK]

 

69

 

IN WITNESS WHEREOF, the Company and Purchasers have caused this
Agreement to be executed and delivered by their respective officers thereunto
duly authorized.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  ADVANTAGE MANAGEMENT GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis Nash

  	
   

  
	
   

  	
   

  	
  Dennis Nash

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  KTC ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Dennis Nash

  	
   

  
	
   

  	
   

  	
  Dennis Nash

  
	
   

  	
   

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  Company’s Address for Notices:

  
	
   

  	
   

  	
  4895 Dressler Road, N.W., #100

  
	
   

  	
   

  	
  Canton, Ohio 44718

  
	
   

  	
   

  	
  Attn:  Chief Executive Officer

  
	
   

  	
   

  	
  Facsimile: (303) 305-9905

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with copies to (which will not constitute notice):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sterling Investment Partners Management, LLC

  
	
   

  	
   

  	
  276 Post Road West

  
	
   

  	
   

  	
  Westport, CT  06880

  
	
   

  	
   

  	
  Attn:  Douglas L. Newhouse

  
	
   

  	
   

  	
  Facsimile:  (203)  454-5780

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fulbright & Jaworski L.L.P.

  
	
   

  	
   

  	
  666 Fifth Avenue

  
	
   

  	
   

  	
  New York, New York 10103

  
	
   

  	
   

  	
  Attn: Paul Jacobs, Esq.

  
	
   

  	
   

  	
  Facsimile:  (212) 318-3400

  
					

 

 

IN WITNESS WHEREOF, the Company and Purchasers have caused this
Agreement to be executed and delivered by their respective officers thereunto
duly authorized.

 

	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
  RSTW PARTNERS III, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  RSTW Management, L.P.,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Rice Mezzanine Corporation,

  
	
   

  	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
    /s/ Kurt G. Keene

  	
   

  
	
   

  	
   

  	
  Kurt G. Keene

  
	
   

  	
   

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
  Amount of RSTW New Note:

  
	
   

  	
  $13,000,000

  
	
   

  	
  Amount of RSTW Amended 1998 Note:

  
	
   

  	
  $12,000,000

  
	
   

  	
  Amount of RSTW Amended 2000 Note:

  
	
   

  	
  $1,250,000

  

 

 

IN WITNESS WHEREOF, the Company and Purchasers have caused this
Agreement to be executed and delivered by their respective officers thereunto
duly authorized.

 

	
   

  	
  MASSACHUSETTS MUTUAL LIFE INSURANCE

  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  David L. Babson & Company Inc.,

  
	
   

  	
   

  	
  its Investment Adviser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
      /s/ Michael L. Klofas

  	
   

  
	
   

  	
   

  	
  Name:

  	
    Michael L. Klofas

  	
   

  
	
   

  	
   

  	
  Title:

  	
    Managing Director

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  1295 State Street

  
	
   

  	
   

  	
  Springfield, Massachusetts 01111

  
	
   

  	
   

  	
  Attn: Robert Shettle

  
	
   

  	
   

  	
  Facsimile: (413) 744-3310

  
	
   

  	
   

  
	
   

  	
  Amount of MMLI-A Note: $7,665,296

  
	
   

  	
   

  
	
   

  	
  Amount of MMLI-B Note: $2,555,099

  
								

 

 

IN WITNESS WHEREOF, the Company and Purchasers have caused this
Agreement to be executed and delivered by their respective officers thereunto
duly authorized.

 

	
   

  	
  MASSMUTUAL CORPORATE INVESTORS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael P. Hermsen

  	
   

  
	
   

  	
  Name:

  	
  Michael P. Hermsen

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The foregoing is executed on behalf of MassMutual Corporate
  Investors, organized under a Declaration of Trust, dated September 13,
  1985, as amended from time to time. 
  The obligations of such Trust are not personally binding upon, nor
  shall resort be had to the property of, any of the Trustees, shareholders,
  officers, employees or agents of such Trust, but the Trust’s property only
  shall be bound.

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  1295 State Street

  
	
   

  	
   

  	
  Springfield, Massachusetts 01111

  
	
   

  	
   

  	
  Attn: Robert Shettle

  
	
   

  	
   

  	
  Facsimile: (413) 744-3310

  
	
   

  	
   

  
	
   

  	
  Amount of MCI Note: $1,817,435

  
							

 

 

IN WITNESS WHEREOF, the Company and Purchasers have caused this
Agreement to be executed and delivered by their respective officers thereunto
duly authorized.

 

	
   

  	
  MASSMUTUAL PARTICIPATION INVESTORS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael L. Klofas

  	
   

  
	
   

  	
  Name:

  	
  Michael L. Klofas

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
  The foregoing is executed on behalf of MassMutual Participation
  Investors, organized under a Declaration of Trust, dated April 7, 1988,
  as amended from time to time.  The
  obligations of such Trust are not personally binding upon, nor shall resort
  be had to the property of, any of the Trustees, shareholders, officers,
  employees or agents of such Trust, but the Trust’s property only shall be
  bound.

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  1295 State Street

  
	
   

  	
   

  	
  Springfield, Massachusetts 01111

  
	
   

  	
   

  	
  Attn: Robert Shettle

  
	
   

  	
   

  	
  Facsimile: (413) 744-3310

  
	
   

  	
   

  
	
   

  	
  Amount of MPI Note: $962,170

  
							

 

 

Annex I

to

Note
Purchase Agreement

 

	
  Purchaser:

  	
   

  	
  RSTW Partners III, L.P.

  
	
   

  	
   

  	
   

  
	
  Principal Amount of RSTW New Note:

  	
   

  	
  $13,000,000

  
	
   

  	
   

  	
   

  
	
  Principal Amount of RSTW Amended 1998 Note:

  	
   

  	
  $12,000,000

  
	
   

  	
   

  	
   

  
	
  Principal Amount of RSTW Amended 2000 Note:

  	
   

  	
  $1,250,000

  
	
   

  	
   

  	
   

  
	
  Denomination of Warrant (aggregate):

  	
   

  	
  4,809 shares of Series D Convertible Preferred Stock of the Parent,
  plus up to 31,462 shares of Common Stock under certain circumstances of the
  Parent, subject to antidilution adjustments from time to time.

  
	
   

  	
   

  	
   

  
	
  Address for notices:

  	
   

  	
  RSTW Partners III, L.P.

  
	
   

  	
   

  	
  c/o Rice Sangalis Toole & Wilson

  
	
   

  	
   

  	
  5847 San Felipe, Suite 4350

  
	
   

  	
   

  	
  Houston, Texas  77057

  
	
   

  	
   

  	
  Attn:  Kurt G. Keene

  
	
   

  	
   

  	
  Facsimile:  (713) 783-9750

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Patton Boggs LLP

  
	
   

  	
   

  	
  2001 Ross Avenue, Suite 3000

  
	
   

  	
   

  	
  Dallas, Texas  75201

  
	
   

  	
   

  	
  Attn:  James C. Chadwick

  
	
   

  	
   

  	
  Facsimile:  (214) 758-1550

  
	
   

  	
   

  	
   

  
	
  Payments to be made by wire transfer to:

  	
   

  	
  Southwest Bank of Texas, N.A.,

  
	
   

  	
   

  	
  Houston, Texas

  
	
   

  	
   

  	
  ABA Routing # 113011258

  
	
   

  	
   

  	
  For the Account of:

  
	
   

  	
   

  	
  RSTW Partners III, L.P.

  
	
   

  	
   

  	
  Money Market Account # 9033963

  
	
   

  	
   

  	
  re:  Advantage/Kenan

  

 

I - 1

 

	
  Name and Address of Purchaser

  	
   

  	
  Notes to
  be Purchased

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MASSACHUSETTS MUTUAL LIFE

  	
   

  	
  $

  	
  7,665,296.00

  	
   

  	
   

  
	
  INSURANCE COMPANY

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c/o David L. Babson & Company Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1295 State Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Springfield, MA  01111

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn:  Securities Investment
  Division

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Payments

  	
   

  
	
   

  	
   

  
	
  All payments on account of the Note shall be made by crediting in the
  form of bank wire transfer of Federal or other immediately available funds,
  (identifying each payment as payment of Advantage Management Group, Inc. and
  Kenan Transport Company Senior Subordinated Notes interest and principal),
  to:

  
	
   

  	
   

  
	
  Citibank, N.A.

  	
   

  
	
  111 Wall Street

  	
   

  
	
  New York, NY  10043

  	
   

  
	
  ABA No. 021000089

  	
   

  
	
  For MassMutual Long-Term Pool

  	
   

  
	
  Account No. 4067-3488

  	
   

  
	
  Re: [Description of security, principal and interest split]

  	
   

  
	
   

  	
   

  
	
  With telephone advice of payment to the Securities Custody and
  Collection

  
	
  Department of David L. Babson & Company Inc. at (413) 744-5104 or
  (413) 744-5718

  
	
   

  	
   

  
	
  Notices

  	
   

  
	
   

  	
   

  
	
  1.  Send Communications and
  Notices to:

  	
  2.  Send Notices on Payments
  to:

  
	
   

  	
   

  
	
  Massachusetts Mutual Life Insurance Company

  	
  Massachusetts Mutual Life Insurance Company

  
	
  c/o David L. Babson & Company Inc.

  	
  c/o David L. Babson & Company Inc.

  
	
  1295 State Street

  	
  1295 State Street

  
	
  Springfield, MA  01111

  	
  Springfield, MA 01111

  
	
  Attn:  Securities Investment
  Division

  	
  Attention: 

  	
  Securities Custody and

  
	
   

  	
   

  	
  Collection Department - F381

  
	
   

  	
   

  
	
  Tax Identification No.   04-1590850

  	
   

  
	
   

  
	
  Denomination of Warrant:

  	
  1,133 shares of Series D Convertible Preferred Stock of the Parent,
  plus up to 7,415 shares of Common Stock under certain circumstances of the
  Parent, subject to antidilution adjustments from time to time.

  
					

 

I - 2

 

	
  Name and Address of Purchaser

  	
   

  	
  Principal
  Amount of

  Notes to be Purchased

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MASSACHUSETTS MUTUAL LIFE

  	
   

  	
  $

  	
  2,555,099.00

  	
   

  	
   

  
	
  INSURANCE COMPANY

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c/o David L. Babson & Company Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1295 State Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Springfield, MA  01111

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn:  Securities Investment
  Division

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Payments

  
	
   

  
	
  All payments on account of the Note shall be made by crediting in the
  form of bank wire transfer of Federal or other immediately available funds,
  (identifying each payment as payment of Advantage Management Group, Inc. and
  Kenan Transport Company Senior Subordinated Notes interest and principal),
  to:

  
	
   

  	
   

  
	
  Chase Manhattan Bank, N.A.

  	
   

  
	
  4 Chase MetroTech Center

  	
   

  
	
  New York, NY  10081

  	
   

  
	
  ABA No. 021000021

  	
   

  
	
  For MassMutual IFM Non-Traditional

  	
   

  
	
  Account No. 910-2509073

  	
   

  
	
  Re: [Description of security, principal and interest split]

  	
   

  
	
   

  
	
  With telephone advice of payment to the Securities Custody and
  Collection

  
	
  Department of David L. Babson & Company Inc. at (413) 744-5104 or
  (413) 744-5718

  
	
   

  	
   

  
	
  Notices

  	
   

  
	
   

  	
   

  
	
  1.  Send Communications and
  Notices to:

  	
  2.  Send Notices on Payments
  to:

  
	
   

  	
   

  
	
  Massachusetts Mutual Life Insurance Company

  	
  Massachusetts Mutual Life Insurance Company

  
	
  c/o David L. Babson & Company Inc.

  	
  c/o David L. Babson & Company Inc.

  
	
  1295 State Street

  	
  1295 State Street

  
	
  Springfield, MA  01111

  	
  Springfield, MA 01111

  
	
  Attn:  Securities Investment
  Division

  	
  Attention:

  	
  Securities Custody and

  
	
   

  	
   

  	
  Collection Department - F381

  
	
   

  	
   

  
	
  Tax Identification No.   04-1590850

  	
   

  
	
   

  
	
  Denomination of Warrant:

  	
  378 shares of Series D Convertible Preferred Stock of the Parent,
  plus up to 2,471 shares of Common Stock under certain circumstances of the
  Parent, subject to antidilution adjustments from time to time.

  
				

 

I - 3

 

	
  Name and Address of Purchaser

  	
   

  	
  Principal
  Amount of

  Notes to be Purchased

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MASSMUTUAL
  CORPORATE INVESTORS

  	
   

  	
  $

  	
  1,817,435.00

  	
   

  	
   

  
	
  c/o David L. Babson & Company Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1295 State Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Springfield, MA  01111

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn:  Securities Investment
  Division

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  
	
  Payments

  
	
   

  
	
  All payments on account of the Note shall be made by crediting in the
  form of bank wire transfer of Federal or other immediately available funds,
  (identifying each payment as payment of Advantage Management Group, Inc. and
  Kenan Transport Company Senior Subordinated Notes interest and principal),
  to:

  
	
   

  
	
  Chase/NYC/Cust

  
	
  ABA No. 021000021

  
	
  A/C #900-9-000200 for F/C/T MassMutual Corporate Investors

  
	
  A/C #G06109

  
	
  Attn: Bond Interest

  
	
  Re: [Description of security (principal and interest split, if
  applicable)]

  
	
   

  
	
  With telephone advice of payment to the Securities Custody and
  Collection Department of David L. Babson & Company Inc. at (413) 744-5104
  or (413) 744-5718

  
	
   

  
	
  Instructions for mailing checks

  
	
   

  
	
  MassMutual Corporate Investors

  
	
  (or Cudd & Co., if securities are registered in the nominee name)

  
	
  c/o Chase Manhattan Bank, N.A.

  
	
  Attn: Income Processing, Level 4B

  
	
  P.O. Box 1508, Church Street Station

  
	
  New York, NY  10008

  
	
   

  
	
  Please include a/c #G06109 on the check.

  

 

I - 4

 

	
  Instructions for delivery of securities

  
	
   

  
	
  All securities should be delivered to the following address:

  
	
   

  	
   

  	
   

  
	
  Chase Manhattan Bank

  	
   

  	
   

  
	
  4 New York Plaza

  	
   

  	
   

  
	
  Ground Floor Window

  	
   

  	
   

  
	
  New York, NY  10004

  	
   

  	
   

  
	
  Attn: Larry Zimmer

  	
   

  	
   

  
	
  Re: #G06109

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Notices

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  1.  Send Communications and
  Notices to:

  	
   

  	
  2.  Send Notices on Payments
  to:

  
	
   

  	
   

  	
   

  
	
  MassMutual Corporate Investors

  	
   

  	
  MassMutual Corporate Investors

  
	
  c/o David L. Babson & Company Inc.

  	
   

  	
  c/o David L. Babson & Company Inc.

  
	
  1295 State Street

  	
   

  	
  1295 State Street

  
	
  Springfield, MA  01111

  	
   

  	
  Springfield, MA 01111

  
	
  Attn:  Securities Investment
  Division

  	
   

  	
  Attention:

  	
  Securities Custody and

  
	
   

  	
   

  	
   

  	
  Collection Department - F381

  
	
   

  	
   

  	
   

  
	
  Tax Identification No.   04-2483041

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Denomination of Warrant:

  	
  269 shares of Series D Convertible Preferred Stock of the Parent,
  plus up to 1,758 shares of Common Stock under certain circumstances of the
  Parent, subject to antidilution adjustments from time to time.

  
					

 

I - 5

 

	
  Principal Amount of

  Name and Address of Purchaser

  	
   

  	
  Notes to
  be Purchased

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MASSMUTUAL
  PARTICIPATION INVESTORS

  	
   

  	
  $

  	
  962,170.00

  	
   

  	
   

  
	
  INSURANCE COMPANY

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  c/o David L. Babson & Company Inc.

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1295 State Street

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Springfield, MA  01111

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Attn:  Securities Investment Division

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  Payments

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  All payments on account of the Note shall be made by crediting in the
  form of bank wire transfer of Federal or other immediately available funds,
  (identifying each payment as payment of Advantage Management Group, Inc. and
  Kenan Transport Company Senior Subordinated Notes interest and principal),
  to:

  
	
   

  	
   

  	
   

  
	
  Chase/NYC/Cust

  	
   

  	
   

  
	
  ABA No. 021000021

  	
   

  	
   

  
	
  A/C #900-9-000200 for F/C/T MassMutual Participation Investors

  	
   

  	
   

  
	
  A/C #G06110

  	
   

  	
   

  
	
  Attn: Bond Interest

  	
   

  	
   

  
	
  Re: [Description of security (principal and interest split, if
  applicable)]

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  With telephone advice of payment to the Securities Custody and
  Collection Department of David L. Babson & Company Inc. at (413) 744-5104
  or (413) 744-5718

  
	
   

  	
   

  	
   

  
	
  Instructions for mailing checks

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MassMutual Participation Investors

  	
   

  	
   

  
	
  (or Cudd & Co., if the securities are registered in nominee name)

  	
   

  	
   

  
	
  c/o Chase Manhattan Bank, N.A.

  	
   

  	
   

  
	
  Attn: Income Processing, Level 4B

  	
   

  	
   

  
	
  P.O. Box 1508, Church Street Station

  	
   

  	
   

  
	
  New York, NY  10008

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Please include a/c #G06110 on the check.

  	
   

  	
   

  

 

I - 6

 

	
  Instructions for delivery of securities

  	
   

  
	
   

  	
   

  
	
  All securities should be delivered to the following address:

  	
   

  
	
   

  	
   

  
	
  Chase Manhattan Bank

  	
   

  
	
  4 New York Plaza

  	
   

  
	
  Ground Floor Window

  	
   

  
	
  New York, NY  10004

  	
   

  
	
  Attn: Larry Zimmer

  	
   

  
	
  Re: #G06110

  	
   

  
	
   

  	
   

  
	
  Notices

  	
   

  
	
   

  	
   

  
	
  1.  Send Communications and
  Notices to:

  	
  2.  Send Notices on Payments
  to:

  
	
   

  	
   

  
	
  MassMutual Participation Investors

  	
  MassMutual Participation Investors

  
	
  c/o David L. Babson & Company Inc.

  	
  c/o David L. Babson & Company Inc.

  
	
  1295 State Street

  	
  1295 State Street

  
	
  Springfield, MA  01111

  	
  Springfield, MA 01111

  
	
  Attn:  Securities Investment
  Division

  	
  Attention:

  	
  Securities Custody and

  
	
   

  	
   

  	
  Collection Department - F381

  
	
   

  	
   

  
	
  Tax Identification No.   04-3025730

  	
   

  
	
   

  
	
  Denomination of Warrant:

  	
  142 shares of Series D Convertible Preferred Stock of the Parent,
  plus up to 931 shares of Common Stock under certain circumstances of the
  Parent, subject to antidilution adjustments from time to time.

  
				

 

I - 7Exhibit
10.9

 

Execution
Version

 

FIRST
AMENDMENT TO NOTE PURCHASE AGREEMENT

 

This First Amendment to
Note Purchase Agreement (this “Amendment”), dated as of
September 30, 2002, is by and between KENAN TRANSPORT COMPANY, a North
Carolina corporation (“Kenan”), ADVANTAGE MANAGEMENT GROUP, INC., an
Ohio corporation (“AMG” and together with Kenan collectively, the “Company”),
RSTW PARTNERS III, L.P., a Delaware limited partnership (“RSTW”),
MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, a mutual life insurance company
established under the laws of the Commonwealth of Massachusetts (“MMLI”),
MASSMUTUAL CORPORATE INVESTORS, a Massachusetts business trust (“MCI”),
and MASSMUTUAL PARTICIPATION INVESTORS, a Massachusetts business trust (“MPI”).
MMLI, MCI and MPI are hereinafter referred to, collectively, as the “MassMutual
Investors”. RSTW and the MassMutual Investors are collectively referred to
herein as the “Purchasers”. All capitalized terms used but not otherwise
defined in this Amendment shall have the meanings ascribed to them in the Note
Agreement.

 

RECITALS

 

A.                                   The Company and the Purchasers have entered
into that certain Note Purchase Agreement, dated April 30, 2001 (the “Note
Agreement”).

 

B.                                    The Purchasers and the Company desire to
amend the Note Agreement to modify certain provisions thereof.

 

C.                                    The Purchasers are willing to amend the Note
Agreement on the terms and conditions set forth in this Amendment.

 

NOW,
THEREFORE, in
consideration of the premises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto, intending to be legally bound, agree as follows:

 

SECTION 1.                           AMENDMENT TO NOTE AGREEMENT. Unless otherwise specified, all
section references in this Section 1 of the Amendment refer to
sections of the Note Agreement. The Note Agreement is hereby amended as
follows:

 

1.1.                              Amendment to
Section 6.23(a) of the Note Agreement. Effective as of the date hereof, Section 6.23(a) of the Note
Agreement is hereby amended and restated to read in its entirety as follows:

 

“(a)                            Maximum Leverage Ratio.
The Company and the other Credit Parties will at all times maintain a Leverage
Ratio of the Credit Parties as of the last day of any fiscal quarter of the
Parent ending during any test period set forth on the table below not to exceed
the ratio set forth opposite such test period below:

 

1

 

	
  Test Period

  	
   

  	
  Ratio

  	
   

  
	
  Closing Date to December 30, 2001

  	
   

  	
  4.40 to 1.00

  	
   

  
	
  December 31,
  2001 to June 29, 2002

  	
   

  	
  4.02 to 1.00

  	
   

  
	
  June 30,
  2002 to September 29, 2002

  	
   

  	
  3.85 to 1.00

  	
   

  
	
  September 30,
  2002 to June 29, 2003

  	
   

  	
  3.96 to 1.00

  	
   

  
	
  June 30,
  2003 to September 29, 2003

  	
   

  	
  3.69 to 1.00

  	
   

  
	
  September 30,
  2003 to December 30, 2003

  	
   

  	
  3.52 to 1.00

  	
   

  
	
  December 31,
  2003 to March 30, 2004

  	
   

  	
  3.30 to 1.00

  	
   

  
	
  March 31,
  2004 to June 29, 2004

  	
   

  	
  2.92 to 1.00

  	
   

  
	
  June 30,
  2004 to September 29, 2005

  	
   

  	
  2.75 to 1.00

  	
   

  
	
  September 30,
  2005 to December 31, 2007

  	
   

  	
  2.48 to 1.00

  	
   

  
	
  January 1,
  2008 and thereafter

  	
   

  	
  2.25 to 1.00”

  	
   

  

 

SECTION 3.                           CONDITIONS TO EFFECTIVENESS.  The effectiveness of this Amendment is
subject to the satisfaction of the following conditions precedent, unless
specifically waived in writing by the Purchasers:

 

3.1.                              The Purchasers shall have received:

 

(a)                                  this Amendment, executed and delivered by a
duly authorized officer of the Company and consented to by duly authorized
officers of the Parent, AMHC and each of the Subsidiaries of the Company;

 

(b)                                 a Consent and Ratification by the Parent,
AMHC and each Subsidiary of the Company under the Guaranty, in the form
attached to this Amendment following the signature pages hereto;

 

(c)                                  such additional documents, instruments and
information as the Purchasers or their legal counsel may request.

 

3.2.                              The representations and warranties contained
herein, in the Note Agreement, as amended hereby, and the Other Agreements
shall be true and correct as of the date hereof, as if made on the date hereof,
except to the extent that any such representation or warranty expressly relates
to an earlier date.

 

3.3.                              After giving effect to this Amendment, (a) no
Potential Default or Event of Default under the Note Agreement, as amended
hereby, shall have occurred and be continuing, and (b) no violation or default
under any Other Agreement shall have occurred and be continuing.

 

SECTION 4.                           RATIFICATIONS,
REPRESENTATIONS AND WARRANTIES.

 

4.1.                              The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Note Agreement and the Other Agreements,

 

1

 

and, except as expressly modified and superseded by this Amendment, the
terms and provisions of the Note Agreement and the Other Agreements are
ratified and confirmed and shall continue in full force and effect. The Company
and the Purchasers agree that the Note Agreement and the Other Agreements, as
amended hereby, shall continue to be legal, valid, binding and enforceable in
accordance with their respective terms.

 

4.2.                            The Company hereby represents and warrants to
the Purchasers that (a) the execution, delivery and performance of this
Amendment and any and all other agreements, documents and instruments executed
and/or delivered in connection herewith have been authorized by all requisite corporate
action on the part of the Company and will not violate the Certificate of
Incorporation or Bylaws of the Company; (b) the representations and warranties
contained in the Note Agreement and the Other Agreements, as amended hereby,
are true and correct on and as of the date hereof as though made on and as of
such date; (c) after giving effect to this Amendment (i) no Potential Default
or Event of Default under the Note Agreement, as amended hereby, has occurred
and is continuing, and (ii) no violation or default under any Other Agreement
shall have occurred and be continuing; and (d) after giving effect to this
Amendment, the Company is in full compliance with all covenants and agreements
contained in the Note Agreement, as amended hereby, and the Other Agreements.

 

SECTION 5.                         MISCELLANEOUS.

 

5.1.                              Survival of Representations and Warranties.  All
representations and warranties made in the Note Agreement or any Other
Agreement, including, without limitation, any document furnished in connection
with this Amendment, shall survive the execution and delivery of this Amendment
and the other agreements, documents and instruments executed or to be executed
in connection herewith, and no investigation by the Purchasers or any closing
shall affect the representations and warranties or the right of the Purchasers
to rely upon them.

 

5.2.                              References to the Note Agreement. 
Each of the Note Agreement and the Other Agreements, and any and all
other agreements, documents or instruments now or hereafter executed and delivered
pursuant to the terms hereof or pursuant to the terms of any of the foregoing,
are hereby amended so that any reference therein to the Note Agreement (or any
terms as defined therein) shall mean a reference to the same as amended hereby.

 

5.3.                              Expenses of Purchasers.  The
Company agrees to pay on demand all costs and expenses incurred by the
Purchasers in connection with the preparation, negotiation and execution of
this Amendment and any other agreements executed pursuant hereto, including,
without limitation, the reasonable costs and fees of the Purchasers’ legal
counsel.

 

5.4.                              Severability.  Any
provision of this Amendment held by a court of competent jurisdiction to be
invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provision so held to
be invalid or unenforceable.

 

5.5.                              Successors and Assigns. 
This Amendment will inure to the benefit of and be binding upon the
parties hereto and their respective successors and permitted assigns.

 

2

 

5.6.                              Headings.  The headings of the sections
and subsections of this Amendment are inserted for convenience only and do not
constitute a part of this Amendment.

 

5.7.                              Counterparts. This Amendment may be executed in any
number of counterparts, which shall collectively constitute one agreement.

 

5.8.                            Law Governing.  THIS AMENDMENT SHALL BE DEEMED TO HAVE BEEN SUBSTANTIALLY
NEGOTIATED AND MADE IN THE STATE OF NEW YORK AND SHALL BE INTERPRETED AND THE
RIGHTS OF THE PARTIES DETERMINED IN ACCORDANCE WITH THE LAWS OF THE UNITED
STATES APPLICABLE THERETO AND THE INTERNAL LAWS OF THE STATE OF NEW YORK
APPLICABLE TO AN AGREEMENT EXECUTED, DELIVERED AND PERFORMED THEREIN, WITHOUT
GIVING EFFECT TO THE CHOICE-OF-LAW RULES THEREOF OR ANY OTHER PRINCIPLE THAT
COULD REQUIRE THE APPLICATION OF THE SUBSTANTIVE LAW OF ANY OTHER JURISDICTION.

 

5.9.                            Waiver; Modification. NO PROVISION OF THIS
AMENDMENT MAY BE WAIVED, CHANGED OR MODIFIED, OR THE DISCHARGE THEREOF
ACKNOWLEDGED, ORALLY, BUT ONLY BY AN AGREEMENT IN WRITING SIGNED BY THE PARTY
AGAINST WHOM THE ENFORCEMENT OF ANY WAIVER, CHANGE, MODIFICATION OR DISCHARGE
IS SOUGHT.

 

5.10.                     Waiver of Jury Trial. TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE COMPANY AND RSTW HEREBY IRREVOCABLY AND
EXPRESSLY WAIVE  ALL RIGHT TO A TRIAL BY
JURY  IN  ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED UPON
CONTRACT, TORT, OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AMENDMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF RSTW IN THE NEGOTIATION,
ADMINISTRATION OR ENFORCEMENT THEREOF.

 

5.11.                     Final Agreement. THE NOTE AGREEMENT, AS
AMENDED HEREBY, AND THE OTHER AGREEMENTS REPRESENT THE ENTIRE EXPRESSION OF THE
PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS
EXECUTED. THE NOTE AGREEMENT, AS AMENDED HEREBY, AND THE OTHER AGREEMENTS MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

[REMAINDER OF THIS PAGE INTENTIONALLY BLANK]

 

3

 

IN WITNESS WHEREOF, the Company and Purchasers have caused this
Agreement to be executed and delivered by their respective officers thereunto
duly authorized.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  KENAN
  TRANSPORT COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADVANTAGE
  MANAGEMENT GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

	
   

  	
  PURCHASERS:

  
	
   

  	
   

  
	
   

  	
  RSTW
  PARTNERS III, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  RSTW Management, L.P.,

  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Rice Mezzanine
  Corporation,

  its general partner

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Kutt G. Keene

  
	
   

  	
   

  	
  Kutt G. Keene

  
	
   

  	
   

  	
  Managing Director

  
							

 

 

	
   

  	
  MASSACHUSETTS
  MUTUAL LIFE

  
	
   

  	
  INSURANCE
  COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  David
  L. Babson & Company  Inc.,

  its Investment Adviser

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Michael P. Hermsen

  
	
   

  	
   

  	
  Name:

  	
  Michael P. Hermsen

  
	
   

  	
   

  	
  Title:

  	
  Managing
  Director

  
						

 

 

	
   

  	
  MASSMUTUAL
  CORPORATE INVESTORS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael P. Hermsen

  	
   

  
	
   

  	
  Name:

  	
  Michael P.
  Hermsen

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
  The
  foregoing is executed on behalf of MassMutual Corporate Investors, organized
  under a Declaration of Trust, dated September 13, 1985, as amended from
  time to time. The obligations of such Trust are not personally binding upon,
  nor shall resort be had to the property of, any of the Trustees,
  shareholders, officers, employees or agents of such Trust, but the Trust’s
  property only shall be bound.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MASSMUTUAL
  PARTICIPATION INVESTORS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael P. Hermsen

  	
   

  
	
   

  	
  Name:

  	
  Michael P.
  Hermsen

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The
  foregoing is executed on behalf of MassMutual Participation Investors,
  organized under a Declaration of Trust, dated April 7, 1988, as amended
  from time to time. The obligations of such Trust are not personally binding
  upon, nor shall resort be had to the property of, any of the Trustees,
  shareholders, officers, employees or agents of such Trust, but the Trust’s
  property only shall be bound.

  
						

 

 

The undersigned, as Administrative Agent under that certain Senior
Subordination Agreement, dated April 30, 2001, by and among Senior Lender
and the Purchasers, as amended, hereby acknowledges and consents to the terms
and conditions of this Amendment.

 

	
   

  	
  CANADIAN
  IMPERIAL BANK OF COMMERCE,

  
	
   

  	
  as
  Administrative Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lindsay Gordon

  
	
   

  	
  Name:

  	
  Lindsay Gordon

  
	
   

  	
  Title:

  	
  Executive Director

  
	
   

  	
  CIBC World Markets
  Corp. As Agent

  

 

 

CONSENT AND
RATIFICATION

 

Each of the undersigned, THE KENAN ADVANTAGE GROUP,
INC., ADVANTAGE MANAGEMENT HOLDINGS CORP., J. MCDANIEL, INC., ADVANTAGE TANK
LINES, INC., NORTH CANTON TRANSFER CO., EVALIA ACQUISITION CORP., GENI
MANAGEMENT CORPORATION, GENI TRANSPORT, INC. and PETRO-CHEMICAL TRANSPORT, INC.
(collectively, the “Guarantors”), has executed a certain Guaranty (“Guaranty”),
in favor of the Purchasers (as defined in the foregoing Amendment). Each
Guarantor hereby consents and agrees to the terms of the foregoing Amendment,
and such Guarantor agrees that its Guaranty shall remain in full force and
effect and shall continue to be the legal, valid and binding obligation of such
Guarantor enforceable against it in accordance with its terms. Furthermore,
each Guarantor hereby agrees and acknowledges that (a) its Guaranty is not
subject to any claims, defenses or offsets, (b) nothing contained in the Note
Agreement (as defined in the foregoing Amendment), the Amendment or any other
agreement, instrument or document executed in connection therewith shall
adversely affect any right or remedy of the Purchasers under the Guaranty, (c)
the execution and delivery of the Amendment shall in no way reduce, impair or
discharge any obligations of the Guarantor as guarantor pursuant to the
Guaranty and shall not constitute a waiver by the Purchasers of any of the
Purchasers’ rights against such Guarantor, (d) by virtue hereof and by virtue
of its Guaranty, each Guarantor hereby guarantees to the Purchasers the prompt
and full payment and full and faithful performance by the Company of the
entirety of the “Indebtedness” (as defined in the Guaranty) on the terms and
conditions set forth therein and any time further modified or amended, (e) such
Guarantor’s consent is not required to the effectiveness of the Amendment, and
(f) no consent by such Guarantor is required for the effectiveness of any
future amendment, modification, forbearance or other action with respect to the
Note Agreement (as defined in the foregoing Amendment).

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

8

 

	
   

  	
  THE KENAN ADVANTAGE GROUP, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H.Young

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADVANTAGE MANAGEMENT HOLDINGS CORP.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H.Young

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  J. MCDANIEL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H. Young

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADVANTAGE TANK LINES, & INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H. Young 

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  NORTH CANTON TRANSFER CO.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H. Young

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EVALIA ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H. Young

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  

 

9

 

	
   

  	
  GENI MANAGEMENT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H. Young

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENI
  TRANSPORT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H. Young

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PETRO-CHEMICAL
  TRANSPORT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carl H. Young

  	
   

  
	
   

  	
  Name:

  	
  Carl
  H. Young

  
	
   

  	
  Title:

  	
  Chief
  Financial Officer

  

 

10

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