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roadrunnerexecutedfiftha

                                                                  EXECUTION VERSION                FIFTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT         FIFTH AMENDMENT AND WAIVER TO CREDIT AGREEMENT (this “Fifth Amendment”)  dated  as  of  September  19,  2018  among  ROADRUNNER  TRANSPORTATION SYSTEMS,  INC.,  a  Delaware  corporation  (the  “Company”),  each  of  the  Subsidiaries of  the  Company  identified  as  “Subsidiary Guarantors” on the signature pages to the Credit Agreement (the “Subsidiary Guarantors”),  the Lenders (as defined below) party hereto and BMO HARRIS BANK N.A., as Administrative Agent  (the  “Administrative  Agent”),  each  of  which  is  a  party  to  the  Existing  Credit  Agreement  (as  defined  below).          WHEREAS,  Company,  the  Subsidiary  Guarantors,  the  financial  institutions  from  time  to  time  party thereto as lenders (the “Lenders”) and the Administrative Agent are parties to that certain Credit  Agreement  dated  as  of  July  21, 2017  (as  amended, supplemented, or otherwise  modified  from  time  to  time prior to this Fifth Amendment and as in effect immediately prior to the effectiveness of this Fifth  Amendment, the “Existing Credit Agreement”, and as amended by this Fifth Amendment and as may be  further  amended,  supplemented  or  otherwise  modified  and  in  effect  from  time  to  time,  the  “Amended  Credit Agreement”).         WHEREAS,  the  Company  and  the  Subsidiary  Guarantors  request  that  the  Lenders  and  the  Administrative  Agent  amend  the  Existing  Credit  Agreement  in  certain  respects,  and  the  Lenders  party  hereto and the Administrative Agent are willing to so amend the Existing Credit Agreement, as set forth  below.          WHEREAS, an Event of Default exists under the Existing Credit Agreement, and the Company  and the Subsidiary Guarantors request that the Lenders and the Administrative Agent waive such Event of  Default, and the Lenders party hereto and the Administrative Agent are willing to so waive such Event of  Default, as set forth below.         WHEREAS, these recitals shall be construed as part of this Fifth Amendment.         NOW  THEREFORE,  in  consideration  of  the  foregoing  and  for  other good  and  valuable  consideration, the receipt of which is hereby acknowledged, the parties hereto hereby agree as follows:         Section 1.  Definitions.  Except as otherwise defined in this Fifth Amendment, terms defined in  the Amended Credit Agreement are used herein as defined therein.          Section 2.  Amendments to the Existing Credit Agreement.  From and after the Fifth Amendment  Effective Date, the Existing Credit Agreement shall be amended as follows:         2.01.  References  Generally.   References  in  the  Existing  Credit  Agreement  (including  references  to  the  Existing  Credit  Agreement  as  amended  hereby) to  “this  Agreement”  (and  indirect  references  such  as  “hereunder”, “hereby”,  “herein”  and  “hereof”)  and  each  reference  to  the  Existing  Credit Agreement in the other Loan Documents (and indirect references such as “thereunder”, “thereby”,  “therein” and “thereof”) shall be deemed to be references to the Existing Credit Agreement as amended  hereby.          2.02. Amended Language.                (a)    Section  1.01  of  the  Existing  Credit  Agreement  is  amended  by  adding  the        following defined term in appropriate alphabetical order as follows:      AmericasActive:12674471.7  

 

                       “Fifth Amendment Effective Date” means September 19, 2018.                (b)    Section  1.01  of  the  Existing  Credit  Agreement  is  amended  by  amending  and        restating the following defined terms in appropriate alphabetical order as follows:                       “Dominion Trigger Period” means the period (a) commencing on the day               that (i) an Event of Default has occurred and is continuing or (ii) Adjusted Excess               Availability is less than the greater of (x) ten percent (10.0%) of the Maximum               Borrowing  Amount  at  such  time  and  (y)  $17,500,000  for  a  period of  five  (5)               consecutive  Business  Days,and  (b)  continuing  until  the  date  that  during  the               previous thirty (30) consecutive days, (i) no Event of Default has existed, and (ii)               Adjusted Excess Availability has been equal to or greater than the greater of (x)               ten percent (10%) of the Maximum Borrowing Amount at such time and (y) $               17,500,000;  provided,  that,  a  Dominion  Trigger  Period  shall  commence  on  the               Fifth Amendment Effective Date and continue until the requirements set forth in               clause  (b)  above  have  been  satisfied  and  the  Company  has  received  net  cash               proceeds  from  the  issuance  of  Equity  Interests  (other  than  Disqualified  Equity               Interest) of at least $30,000,000.                       “Reporting Trigger Period” means the period (a) commencing on the day               that (i) an Event of Default has occurred and is continuing or (ii) Adjusted Excess               Availability is less than the greater of (x) ten percent (10.0%) of the Maximum               Borrowing  Amount  at  such  time  and  (y)  $17,500,000  for  a  period of  five  (5)               consecutive  Business  Days,  and  (b)  continuing  until  the  day  (i)  no  Event  of               Default exists, (ii) Adjusted Excess Availability has been equal to or greater than               the greater of (A) $17,500,000 and (B) 10.0% of the of the Maximum Borrowing               Amount for 30 consecutive days; provided, that, a Reporting Trigger Period shall               commence  with  the  first  full  week  following  the  Fifth  Amendment  Effective               Date and continue until the requirements set forth in clause (b) above have been               satisfied and the Company has received net cash proceeds from the issuance of               Equity Interests (other than Disqualified Equity Interest) of at least $30,000,000.                       “Second  Amendment  Series  E  Preferred  Stock”  means  the  “Series  E               Preferred Stock” as defined in, and issued pursuant to, the Second Amendment               Investment  Agreement  (as  amended  by  Amendment  No.  1  to  Investment               Agreement and Termination of Equity Commitment Letter dated as of August 3,               2018); provided that (A) the aggregate amount of such Preferred Stock shall not               exceed  $52,500,000,  (B)  such  Preferred  Stock  shall  be  issued  in  increments  of               not  less  than  $8,750,000,  (C)  the  Net  Cash  Proceeds  of  each  issuance  of  such               Preferred  Stock  shall  be  applied to  prepay  Term  Loans  pursuant to  Section               2.06(b)(i)(E) and (D) such Preferred Stock is issued by December 31, 2018.                (c)    Section  8.12  of  the  Existing  Credit  Agreement  is  amended  by  replacing  each        reference to “Fixed Charge Coverage Trigger Period” with “Fixed Charge Trigger Period”         Section 3.  Waiver  to  the  Existing  Credit  Agreement.   The  Company  has  notified  the  Administrative Agent and the Lenders that a Fixed Charge Trigger Period commenced as of September 6,  2018, and as a result an Event of Default exists under Section 9.01(b) of the Existing Credit Agreement  due to the Consolidated Fixed Charge Coverage Ratio, determined on a Pro Forma Basis as of July 31,  2018, which is the last day of the Measurement Period most recently ended prior to September 6th and 7th  of  2018,  being  less  than  1.00  to  1.00  (the  Event  of  Default  arising  solely  from  such  circumstances  is                                              2  

 

   hereafter referred to as the “Specified Default”).  The Company hereby requests the Required Lenders to  waive (x) the Specified Default and (y) the imposition of the Dominion Trigger Period and the Reporting  Trigger Period for the period commencing on September 6, 2018 and ending on the Fifth Amendment  Effective Date.  Subject to the terms and conditions set forth in this Agreement, the Required Lenders  hereby  waive  the  Specified  Default  and  imposition  of  the  Dominion  Trigger Period  and  the  Reporting  Trigger Period for the period specified herein.          Section 4.  Representations and Warranties of the Loan Parties.  The Loan Parties represent and  warrant to the Administrative Agent and the Lenders that as of the Fifth Amendment Effective Date:         4.01.  each  of  the  representations  and  warranties  set  forth  in  the  Amended  Credit Agreement  and in the other Loan Documents are true and correct in all respects (or in all material respects for such  representations and warranties that are not by their terms already qualified as to materiality) as of the date  hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in  which case they shall be true and correct in all respects (or in all material respects for such representations  and warranties that are not by their terms already qualified as to materiality) as of such earlier date, and  except  that  for  purposes  of  this Section 4.01,  (i)  the  representations  and  warranties  contained  in  Section 6.05(a) and (c) of the Amended Credit Agreement shall be deemed to refer to the most recent  statements furnished pursuant to clause (a) of Section 7.01 of the Amended Credit Agreement and (ii) the  representations and warranties contained in Section 6.05(b) of the Amended Credit Agreement shall be  deemed  to  refer  to  the  most  recent  statements  furnished  pursuant  to  clause (b)  of  Section 7.01  of  the  Amended Credit Agreement;         4.02.  both  immediately  before  and  after  giving  effect  to  this  Fifth  Amendment  and  the  transactions contemplated hereby, no Default (other than the Specified Default) shall have occurred and  be continuing, or would result therefrom; and         4.03.  both  immediately  before  and  after  giving  effect  to  this  Fifth  Amendment  and  the  transactions contemplated hereby, no Default or Event of Default shall have occurred and be continuing,  or  would  result  therefrom,  under  the  Existing  Investment  Agreement  and/or  the  Second  Amendment  Investment  Agreement  (as  amended)  or  any  transactions  contemplated  thereby,  and  no  fees  shall  have  been paid to any holders of the “Preferred Stock” in connection therewith.          Section 5.  Conditions Precedent.  The amendments to the Existing Credit Agreement set forth in  Section 2  above  shall  become  effective  as  of  the  date  (the  “Fifth  Amendment  Effective  Date”),  upon  which each of the following conditions precedent shall be satisfied or waived:         5.01.  Execution.   The  Administrative  Agent  shall  have  received  counterparts  of  this  Fifth  Amendment, executed by the Loan Parties, the Administrative Agent and the Lenders.         5.02.  Preferred Stock Consent.  The Lenders shall have received confirmation that the holders  of  the  “Preferred  Stock”  under  the  Existing  Investment  Agreement  and  the  Second  Amendment  Investment Agreement (as amended by (a) Amendment No. 1 to Investment Agreement and Termination  of  Equity  Commitment  Letter  dated  as  of  August  3,  2018  and  (b) Amendment  No.  2  to  Investment  Agreement dated as of September 19, 2018, a copy of which has been attached hereto as Exhibit A) have  consented to the Fifth Amendment in form and substance satisfactory to the Lenders.         5.03.  Borrowing  Base  Certificate.   Adjusted  Excess  Availability  shall  be  greater  than  $17,500,000 on and after September 8, 2018, as evidenced by a Borrowing Base Certificate for the month  ending August 31, 2018 delivered by the Company to the Administrative Agent on September 8, 2018.                                               3  

 

          5.04. Costs and Expenses.  The Company shall have paid all reasonable and documented out- of-pocket  costs  and  expenses  of  the  Administrative  Agent  in  connection  with  this  Fifth  Amendment  payable pursuant to Section 11.04 of the Amended Credit Agreement.          Section 6.  Reference to and Effect Upon the Existing Credit Agreement.         6.01.  Except as specifically amended or waived above, the Existing Credit Agreement and the  other Loan Documents shall remain unchanged and in full force and effect and are hereby ratified and  confirmed.         6.02.  The execution, delivery and effectiveness of this Fifth Amendment shall not operate as a  waiver  of  any  right,  power  or  remedy  of  the  Administrative  Agent  or  any  Lender  under  the  Existing  Credit Agreement or any Loan Document, nor constitute a waiver of any provision of the Existing Credit  Agreement or any Loan Document, except as specifically set forth herein.         Section 7.  Ratification of Liability. As of the Fifth Amendment Effective Date, the Company and  the other Loan Parties, as debtors, grantors, pledgors, guarantors, assignors, or in other similar capacities  in  which  such  parties  grant  liens  or  security  interests  in  their  properties  or  otherwise  act  as  accommodation parties or guarantors, as the case may be, under the Loan Documents to which they are a  party,  hereby  ratify  and  reaffirm  all  of  their  payment  and  performance  obligations  and  obligations  to  indemnify, contingent or otherwise, under each of such Loan Documents to which they are a party, and  ratify and reaffirm their grants of liens on or security interests in their properties pursuant to such Loan  Documents to which they are  a party, respectively, as security for the Obligations, and as of the Fifth  Amendment  Effective  Date,  each  such  Person  hereby  confirms  and agrees  that  such  liens  and  security  interests hereafter secure all of the Obligations, including, without limitation, all additional Obligations  hereafter  arising  or  incurred  pursuant  to  or  in  connection  with  this  Fifth  Amendment,  the  Credit  Agreement or any other Loan Document. As of the Fifth Amendment Effective Date, the Company and  the other Loan Parties further agree and reaffirm that the Loan Documents to which they are parties now  apply to all Obligations as defined in the Credit Agreement (including, without limitation, all additional  Obligations  hereafter  arising  or  incurred  pursuant  to  or  in  connection  with  this  Fifth  Amendment,  the  Credit  Agreement  or  any  other  Loan  Document).  As  of  the  Fifth  Amendment  Effective  Date,  the  Company and the other Loan Parties (a) further acknowledge receipt of a copy of this Fifth Amendment,  (b) consent to the terms and conditions of same, and (c) agree and acknowledge that each of the Loan  Documents to which they are a party remain in full force and effect and is hereby ratified and confirmed.          Section 8.  Miscellaneous.   Except  as  herein  provided,  the  Existing  Credit  Agreement  shall  remain  unchanged  and  in  full  force  and  effect.   This  Fifth  Amendment  is  a  Loan  Document  for  all  purposes of the Amended Credit Agreement. This Fifth Amendment may be executed in any number of  counterparts,  and  by  different  parties  hereto  on  separate  counterpart  signature  pages,  and  all  such  counterparts  taken  together  shall  be  deemed  to  constitute  one  and  the  same  instrument.   Delivery  of  a  counterpart  signature  page  by  facsimile  transmission  or  by  e-mail  transmission  of  an  Adobe  portable  document format file (also known as a “PDF” file) shall be effective as delivery of a manually executed  counterpart signature page.  Section headings used in this Fifth Amendment are for reference only and  shall not affect the construction of this Fifth Amendment.          Section 9.  GOVERNING  LAW.   THIS  FIFTH  AMENDMENT,  AND  THE  RIGHTS  AND  DUTIES  OF  THE  PARTIES  HERETO,  SHALL  BE  GOVERNED  BY,  AND  CONSTRUED  IN  ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS.          Section 10.  Release  and  Waiver.  The  Loan  Parties  each  do  hereby  release  the  Administrative  Agent and each of the Lenders and each of their officers, directors, employees, agents, attorneys, personal                                              4  

 

   representatives,  successors,  predecessors  and  assigns  from  all manner  of  actions,  cause  and  causes  of  action,  suits,  deaths,  sums  of  money,  accounts,  reckonings,  bonds,  bills,  specialties,  covenants,  controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims and  demands,  whatsoever,  in  law  or  in  equity,  and  particularly,  without  limiting  the  generality  of  the  foregoing, in connection with the Credit Agreement and the other Loan Documents and any agreements,  documents  and  instruments  relating  to  the  Credit  Agreement  and the  other  Loan  Documents  and  the  administration of the Credit Agreement and the other Loan Documents, all indebtedness, obligations and  liabilities of the Loan Parties to the Administrative Agent or any Lender and any agreements, documents  and  instruments  relating  to  the  Credit  Agreement  and  the  other Loan  Documents  (collectively,  the  “Claims”), which the Loan Parties now have against the Administrative Agent or any Lender or ever had,  or which might be asserted by their heirs, executors, administrators, representatives, agents, successors, or  assigns based on any Claims which exist on or at any time prior to the date of this Fifth Amendment.  The  Loan Parties expressly acknowledge and agree that they have been advised by counsel in connection with  this Fifth Amendment and that they each understand that this Section 10 constitutes a general release of  the Administrative Agent and the Lenders and that they each intend to be fully and legally bound by the  same.  The Loan Parties further expressly acknowledge and agree that this general release shall have full  force and effect notwithstanding the occurrence of a breach of the terms of this Fifth Amendment or an  Event of Default or Default under the Credit Agreement.                                    [signature pages follow]                                               5  

 

 

 

 

 

 

 

 

 

 

 

                                                                             EXHIBIT A                      Amendment No. 2 to Investment Agreement                                    [Attached.]Blueprint

 

Exhibit 10.1

 

PRIVATE & CONFIDENTIAL

 

TERM SHEET

 

This
Term Sheet sets out the understanding between HotApps International
Pte Ltd with regards to the proposed engagement of The Alpha Mind
Pte Ltd (“Consultant”) for provision of consultancy
services to the Company.

 

	

 

COMPANY

 

	

 

HotApps
International Pte Ltd, a company incorporated in Singapore,
registration no. 201414877D and having its office at 7 Temasek
Boulevard #29-01B Suntec Tower One Singapore 038987
(“Company”).

	

 

CONSULTANT

	

 

Company
would like to engage The Alpha Mind Pte Ltd, a company incorporated
in Singapore, registration no. 2009137393G
(“Consultant”) to provide consultancy services to the
Company.

 

During
the term of engagement, its sole member and director, Mr Tay Kiat
Ming, Eugene will act as Acting Chief Executive Officer of the
Company (“Acting CEO”).

 

	

 

TERM
AND COMMENCEMENT DATE

	

 

For an
initial term of 12 months with effect 1 September
2018.

 

	

 

FEES

	

 

Consultant
will be paid consultancy fees based on the following milestones
-

 

1)
First 12 months -S$60,600 per annum payable monthly in
arrears.

 

2) To
be adjusted to S$10,600 per month after successful raising of fresh
funds by the Consultant and upon receipt by the Company of or
exceeding S$1 million which funds were raised based solely on
Consultant’s efforts.

 

3) To
be adjusted to S$20,600 per month after successful raising of fresh
funds by the Consultant and upon receipt by the Company of or
exceeding S$5 million which were raised based solely on
Consultant’s efforts.

 

	

 

OVERVIEW

	

 

It is
the intention of the Company to work towards listing of its parent
company, HotApp BlockChain Inc., an OTC company in the United
States, incorporation ID. 5120182 and having its office at 4800
Montgomery Lane Suite 210 Bethesda, MD20814 (“HotApp
BlockChain”) with NYSE or NASDAQ.

 

	

 

STOCK
PERFORMANCE SHARES

	

 

Acting
CEO shall be granted 1 million of HotApp BlockChain’s stock
performance shares upon its successful uplift to NYSE or NASDAQ.
The exercise price of the stock performance shares shall be at
US$1.00 and will be vested upon completion of 36 months’
continuous engagement (“Tenure”) with the
Company.

 

Such
stock performance shares can be sold only when the share price of
the HotApp BlockChain is trading at US$2 or above, at any time
during the Tenure. Sale of any shares arising from the vested stock
performance shares is restricted to no more than 5% of the daily
trading volume. All unvested stock performance shares will not be
due and will immediately become void in the event of termination of
the Consultancy Agreement.

 

	

 

TERMINATION

	

 

One (1)
month’s written notice of termination from either party or
fees in lieu of notice.

 

 

 

1

 

 

	

 

CONFIDENTIALITY

	

 

Save
for any disclosure made to any regulatory body (including the
exchanges in United States, Hong Kong or Singapore), each party
shall keep strictly confidential the negotiations relating to this
transaction, the existence of this transaction and the contents of
this Term Sheet and shall not disclose the name to any other person
with the prior written consent of the other party.

 

	

 

NON-COMPETITION
AND NON-SOLICITATION

	

 

Consultant
shall not:

 

(a) be
directly or indirectly engaged or concerned in (whether as an
employee, agent, independent contractor or otherwise) the conduct
of any business competing with the businesses carried on or
proposed to be carried on by the Company at any time;

 

(b)
carry on for your own account either alone or in partnership or be
concerned as a director or shareholder in any company engaged in
any business competing with the Company’s
business;

 

(c)
assist any person, firm or company with technical advice or
assistance in relation to any business competing with the
Company’s business;

 

(d)
solicit or entice away or attempt to solicit or entice away from
the Company, any person, firm, company or organisation who shall at
any time have been a customer, client, distributor or agent of the
Company or in the habit of dealing with the Company;

 

(d)
solicit or entice away or attempt to solicit or entice away from
the Company any person who is an officer, manager or employee of
the Company whether or not such person would commit a breach of his
contract of employment by reason of leaving the
Company;

 

(e) in
relation to any trade, business or company, use any name in such a
way as to be capable of or likely to be confused with the name of
the Company and/or the Group and shall use all reasonable
endeavours to procure that no such name shall be used by any other
person, firm or company;

 

(f)
otherwise be interested, directly or indirectly, in any business
competing with the Company’s business; or

 

(g) by
any means and at any time, use any information whatsoever which you
may possess during the course of your engagement with the Company
in any manner which may cause loss or injury to the Company and/or
the Group and should you come into possession of any confidential
information or trade secrets, you undertake irrevocably and
unconditionally not to disclose these to any party at any time
(whether during or after your engagement) without the
Company’s prior written consent unless or until the
information is in the public domain, whereupon to the extent that
it is public this obligation shall cease.

 

	

 

BINDING
EFFECT

	

 

This
Term Sheet shall be legally binding and shall also be legally
enforceable in accordance with its terms in any court or competent
jurisdiction.

 

 

	

 

PREVALENCE
OF CONSULTANCY AGREEMENT

	

 

This
Term Sheet shall be superseded by a Consultancy Agreement to be
negotiated and entered into as soon as practicable and in any
event, no later than 6 months from the date of signing of this Term
Sheet.

 

	

 

COSTS
AND EXPENSES

	

 

Each
Party shall be responsible for its respective costs and expenses in
relation to the preparation of this Term Sheet and any transactions
contemplated thereunder.

 

 

 

2

 

 

	

 

TAXES

	

 

Consultant
and CEO shall be responsible for all relevant taxes required by
applicable laws.

 

	

 

GOVERNING
LAW AND DISPUTE RESOLUTION

	

 

Singapore
Laws and the Parties hereby irrevocably submit to the exclusive
jurisdiction of the Singapore Courts.

 

 

Date:
14 September 2018

 

We
hereby agree to the above terms and conditions:

 

	
Signed
by:

	
Signed
by:

	
 

	
 

	
/s/ Chan Heng
Fai

	
/s/ Tay Kiat Ming
Eugene

	
Name: CHAN HENG
FAI 

	
Name: TAY KIAT MING
EUGENE

	
For and on behalf
of

	
For and on behalf
of

	
HOTAPPS
INTERNATIONAL PTE LTD

	
THE ALPHA MIND PTE
LTD

	
 

	
 

 

                                                                                    

                                                                                   

3

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