Document:

EX-10.7

 Exhibit 10.7 
  

			
	

	  	Promissory Note
	  
  

Funding Date: December 23, 2015

 FOR VALUE RECEIVED, LGSI EQUIPMENT OF INDIANA, LLC, a(n) Indiana limited liability company, (“Maker”),
promises to pay to the order of KEY EQUIPMENT FINANCE, A DIVISION OF KEYBANK NATIONAL ASSOCIATION (“Holder”), the sum of Nineteen Million Seven Hundred Sixty-One Thousand One Hundred Twenty-Three and 60/100 Dollars ($19,761,123.60)
in lawful money of the United States of America (the “Principal”), with interest thereon as hereafter provided (“Interest”), to be paid in the manner set forth herein. 

1. Relationship to Master Security Agreement. This Note is secured by the Master Security Agreement dated as of December 23, 2015 and Collateral
Schedule No. 1 dated as of December 23, 2015 (together, the “Master Security Agreement”), and all terms and conditions contained therein are incorporated herein by reference. Capitalized terms used herein without definition shall
have the meaning given them in the Master Security Agreement. Maker reaffirms all terms, conditions, representations and warranties contained in the Master Security Agreement except as they may be modified hereby. 

2. Interest Rate. Interest on the balance of the Principal outstanding on this Note shall accrue from the Funding Date of this Note and shall be due
and payable at a fixed rate of 3.75 % per annum (the “Interest Rate”). Interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. 

3. Usury; Place of Payment. (a) Holder does not intend to charge any amount in excess of the maximum amount of time price differential or
interest, as applicable, permitted to be charged or collected by applicable law and any such excess amounts will be applied to payments due under this Note, in inverse order of maturity, with any surplus refunded to Maker. 

(b) Payment of the Principal and Interest hereunder shall be made to Holder at 11030 Circle Point Road, 2nd Floor, Westminster, CO 80020, or at such other place as Holder may designate from time to time in writing. Holder reserves the right to require payment on this Note to be made by wired federal funds
or other immediately available funds. 
 4. Repayment Terms. The Principal and Interest shall be due and payable in sixty (60) consecutive
monthly installments payable in arrears, each in an amount equal to Three Hundred Sixty-One Thousand Seven Hundred Five and 99/100 Dollars ($361,705.99) commencing and payable on the date which is one month after the Funding Date and on the same day
of each month thereafter (each, a “Note Payment Date”). In addition, Maker will pay a late payment charge of five percent (5%) of any payment due hereunder that is not paid on or before the date due hereunder. 

5. Prepayment. Maker may not prepay, in whole or in part, the principal outstanding hereunder; provided, however, that so long as no
Default shall have occurred and be continuing and Maker shall have given Holder at least five (5) days prior written notice, Maker may prepay, in whole or in part, the principal outstanding hereunder as follows: 

 

	(a)	Collateral Substitution. Maker may replace any item of Collateral with collateral that is free of all liens and, in Holder’s sole but reasonable opinion, of the same, value, remaining useful life and
utility as the replaced Collateral immediately preceding the replacement, assuming such replaced Collateral was in the condition required by the Loan Documents. Such replacement collateral shall become Collateral subject to Loan Documents and the
security interest granted to Holder hereunder, and Holder shall release its interest in the replaced Collateral in its then condition and location, “AS IS” and “WHERE IS,” without any warranties, express or implied.

  

	(b)	Partial Prepayment. Maker may prepay this Note as to any item or items of Collateral on any Note Payment Date occurring after the Funding Date, but limited to seven (7) occurrences per calendar year
(each, a “Prepayment Date”), for an amount (the “Partial Prepayment Amount”) equal to (1) the Principal Outstanding (as hereinafter defined) hereunder as of the Prepayment Date as to such items of Collateral, together with
all accrued and unpaid interest thereon at the Interest Rate in effect on the Funding Date, plus (2) the Handling Charge (as hereinafter defined), plus (3) the Breakage Charge (as hereinafter defined). Payment of the Partial
Prepayment Amount, together with all other amounts due and owing by Maker under the Note on or before the Prepayment Date, shall be made on the Prepayment Date in immediately available funds. If Maker shall fail to pay all amounts required to be
paid under the Note on the Prepayment Date, the Note shall continue in full force and effect and Maker agrees to reimburse Holder for all reasonable costs, expenses and liabilities incurred in connection therewith. 

  

					
	  

	Form No. R 04-550NOTE.312	  		  	Page 1 of 3

	(c)	Full Prepayment. Maker may prepay the entire outstanding principal balance of this Note on any Note Payment Date occurring after the first anniversary of the Funding Date for an amount (the “Full
Prepayment Amount”) equal to (1) the Principal Outstanding hereunder as of the Prepayment Date, together with all accrued and unpaid interest thereon at the Interest Rate in effect on the Funding Date, plus (2) the Handling
Charge, plus (3) the Breakage Charge. 

  

	(d)	Handling Charge. Each request by Maker for a Partial Prepayment or a Full Prepayment hereunder shall be accompanied by a payment of the greater of (i) 0.25% of the Principal to be repaid, and
(ii) $1,000 (such greater amount, the “Handling Charge”) to be paid by Maker to Holder. All Handling Charges shall be retained by Holder regardless of whether the action requested by Maker is consummated. 

 

	(e)	Breakage Charge. Each request by Maker for a Partial Prepayment or a Full Prepayment hereunder shall be accompanied by a payment of the greater of (i) $0.00, or (ii) that amount which is derived
by subtracting: (A) the net present value of the remaining payments associated with the portion of the loan being prepaid, discounted at the at the Interest Rate in effect on the Funding Date from (B) the net present value of the remaining
payments discounted at the then current swap rate associated with the average life of the remaining payments (the “Breakage Charge”) to be paid by Maker to Holder. 

 

	(f)	Principal Outstanding. As of any Prepayment Date, the principal outstanding hereunder shall be calculated as the outstanding balance of all the Collateral being prepaid assuming each item of Collateral had
an original loan balance equal to 90% of the “orderly liquidation value” as described in the appraisal performed by Asset Control Services, Inc. dated October 29, 2015, amortized over a five year period at the Interest rate (the
“Principal Outstanding”).” 

 6. Application of Payments. Prior to Default, each payment received on this Note shall be
applied in the following order: (a) first, to all costs of collection, (b) second, to any unpaid late payment charges, (c) third, to any Handling Charge and Breakage Charge, (d) fourth, to Interest accrued as of the payment date
and (e) fifth, to the balance, if any, of outstanding Principal as of the date received by Holder. Upon the occurrence and during the continuance of a Default, any payments in respect of the Secured Obligations and any proceeds of the
Collateral when received by Holder in cash or its equivalent, will be applied first to costs of collection and, thereafter, in reduction of the Secured Obligations in such order and manner as Holder may direct in its sole discretion and, in such
event, Maker irrevocably waives the right to direct the application of such payments and proceeds and acknowledges and agrees that Holder shall have the continuing and exclusive right to apply any and all such payments and proceeds in the
Holder’s sole discretion. 
 7. Security. Payment of the Principal and Interest hereunder, and the performance and observance by Maker of all
agreements, covenants and provisions contained herein, is secured by a first priority security interest in the Collateral. 
 8. General. Maker
represents and warrants that this Note evidences a loan for business or commercial purposes. By executing this Note, Maker confirms (a) having read and understood the provisions hereof and (b) Maker’s agreement with all terms and
conditions contained herein. 
 9. Waivers. MAKER AND ALL ENDORSERS, SURETIES, AND GUARANTORS HEREOF HEREBY JOINTLY AND SEVERALLY WAIVE
PRESENTMENT FOR PAYMENT, DEMAND, NOTICE OF NON-PAYMENT OR DISHONOR, NOTICE OF INTENTION TO ACCELERATE THE MATURITY, NOTICE OF PROTEST AND PROTEST OF THIS NOTE. 

10. Funding Date. The Funding Date for this Note shall be the date on which Holder disburses funds hereunder. IF THE FUNDING DATE IS LEFT
BLANK, OR DOES NOT REFLECT THE ACTUAL DATE HOLDER DISBURSES FUNDS HEREUNDER, MAKER HEREBY AUTHORIZES HOLDER TO FILL IN THE CORRECT DATE AT THE TIME OF DISBURSEMENT. 

THIS NOTE IS A LOAN DOCUMENT AND IS BEING DELIVERED IN, AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF, THE STATE OF NEW YORK,
INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, WITHOUT GIVING EFFECT TO ANY CHOICE OF LAW OR CONFLICT OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

[Remainder of page intentionally left blank.] 

  

					
	  

	Form No. R 04-550NOTE.312	  		  	Page 2 of 3

 IN WITNESS WHEREOF, Maker, intending to be legally bound, has caused this Note to be duly
executed on the day and year first written above. 
  

			
	MAKER:
	
	LGSI EQUIPMENT OF INDIANA, LLC
		
	By:	 	 /s/ David A. Crittenden

		 	David A. Crittenden
		 	Secretary/Treasurer

 ATTACHMENT: 

Collateral Schedule: This Note is secured by Collateral Schedule No.      dated as of
                     to the Master Security Agreement. 

  

					
	  

	Form No. R 04-550NOTE.312	  	Signature Page to Promissory Note	  	Page 3 of 3EX-10.8

 Exhibit 10.8 
  

			
	

	 	Consent Agreement
	  

 This Consent Agreement is dated as of December 23, 2015 and is executed in connection with that certain
Collateral Schedule No. 1 dated as of December 23, 2015 (the “Collateral Schedule”) which incorporates by reference the Master Security Agreement dated as of December 23, 2015 (the “Master Agreement”; together, the
Collateral Schedule, Master Agreement and the associated Note are hereinafter referred to as the “Agreement”), between KEY EQUIPMENT FINANCE, A DIVISION OF KEYBANK NATIONAL ASSOCIATION (“KEF”), as Lender, and LGSI
EQUIPMENT OF INDIANA, LLC, an Indiana limited liability company (“Customer”), as Borrower. Unless otherwise specified herein, all capitalized terms will have the meanings ascribed to them in the Master Agreement. KEF and Customer
hereby agree that with respect to the equipment described in the Collateral Schedule (the “Equipment”), from and after the date hereof, the Agreement will be modified to reflect the following: 

 

	1.	CONSENT TO NEW USER 

  

	 	1.1	Consent. Customer may, subject to the following terms and conditions, without any further consent of KEF being required, lease or otherwise permit the use of the Equipment by Universal Dedicated, Inc., Logistics
Insight Corp, Universal Truckload, Inc., Universal Specialized, Inc. and Mason Dixon Intermodal, Inc. (collectively, the “Permitted Users” and, individually, each a “Permitted User”), pursuant to the terms and provisions hereof
(any such lease, together with any agreement modifying the terms of such lease as they relate to the Equipment, collectively, a “Permitted Lease”). 

  

	 	1.2	Reaffirmation by Customer. Customer hereby acknowledges and reaffirms that it is now, and will at all times during the term of the Agreement remain, obligated and bound by all of the provisions of the Agreement
(including but not limited to the provisions relating to indemnification and the obligation to pay all sums due) notwithstanding any delegation of duties or other term of any Permitted Lease. Any such delegation will be effective only as between
Customer and a Permitted User. Customer further acknowledges that it is not authorized to dispose of the Equipment except by Permitted Lease and in accordance with the terms of this Consent Agreement or as otherwise specified in the Loan Documents.
Customer will promptly reimburse KEF for all expenses incurred by KEF in connection herewith or with the enforcement of this Consent Agreement. 

  

	 	1.3	Additional Covenants And Representations Of Customer. Customer covenants, agrees, represents and warrants that each Permitted Lease will contain provisions whereby the applicable Permitted User agrees that:

  

	 	(a)	Permitted User waives, and agrees that it will not assert against KEF, or any successor or assignee of KEF, any defense, set-off, recoupment, claim or counterclaim which Permitted User may at any time have against
Customer for any reason whatsoever; 

  

	 	(b)	KEF will have no obligation to perform any of the duties of Customer under any Permitted Lease, including (but not limited to) (i) the payment of any taxes or other sums or (ii) the furnishing of maintenance,
repairs, replacements, service or insurance; 

  

	 	(c)	the Equipment when subjected to Permitted User’s use and control will continue to be personal property under applicable law at all times during the term of the Permitted Lease, and that the KEF or its designated
employee(s) or agent(s) may inspect the Equipment at its location during normal business hours; 

  

	 	(d)	KEF may rely upon the truth and accuracy of all representations and warranties made to Customer by Permitted User in the Permitted Lease to the same extent and effect as if such representations and warranties had been
made directly to and for the benefit of KEF; 

  

	 	(e)	Permitted User under the Permitted Lease is specifically prohibited from any sale, assignment or sublease of its rights in and to the Equipment or under the Permitted Lease; 

 

	 	(f)	Permitted User is an equipment user and not a broker or seller of equipment; 

  

	 	(g)	the Permitted Lease is expressly subject and subordinate to the Agreement; and 

  

	 	(h)	Customer, its successors and assigns may freely assign the Permitted Lease to KEF. 

  

					
	  

	Form No.: Consent Agreement.612	  		  	Page 1 of 3

	2.	ASSIGNMENT OF PERMITTED LEASE  

  

	 	2.1	Assignment of Permitted Lease. As security for the Secured Obligations related to the Equipment, Customer hereby grants to KEF a first priority security interest in, and assigns, sets over, and transfers to KEF,
its successors and assigns, all (except as otherwise provided herein) of Customer’s right, title, and interest in and to (a) the Permitted Leases and all extensions and renewals thereof, (b) all rentals and other sums due, now or
hereafter, under the Permitted Leases (including, without limitation, the price paid pursuant to the exercise by the applicable Permitted User of any purchase option contained in any Permitted Lease), (c) any and all proceeds of insurance, if
any, insuring the Equipment, and (d) all products and proceeds of the foregoing; provided, however, that KEF will not exercise its rights hereunder unless and until a Default has occurred and is continuing. Notwithstanding the
foregoing assignment, Customer will cause each Permitted User to pay Customer all rentals and other sums payable under the applicable Permitted Lease until KEF delivers to Customer notice of a Default under the Agreement. Upon giving such notice of
Default to Customer, KEF may notify each Permitted User (or, if requested by KEF, Customer will notify each Permitted User) to pay directly to KEF all rentals and other sums payable and to become payable under the Permitted Leases. Upon Permitted
User’s receipt of such notice, Customer hereby authorizes and directs Permitted User to pay KEF all rentals and other sums payable and to become payable under the Permitted Leases. If any remittance is thereafter received by Customer relating
to such Permitted Lease, such remittance will be immediately delivered to KEF bearing the endorsement “Pay to the order of KEY EQUIPMENT FINANCE, A DIVISION OF KEYBANK NATIONAL ASSOCIATION” Until such amounts are remitted to KEF, or if the
remittance is in a form that precludes an endorsement, Customer will segregate, separately account for and hold all such funds in trust for KEF and immediately pay the amount of the remittance to KEF. Customer hereby appoints KEF its
attorney-in-fact to negotiate any remittance which is received by KEF from a Permitted User after a Default and made payable to Customer. Notwithstanding the foregoing, if Customer receives the proceeds of any insurance as a result of a casualty
suffered by leased Equipment, Customer immediately will remit such insurance proceeds to KEF. 

  

	 	2.2	Grant of Security in Inventory and Accounts Receivable. To the extent the Equipment covered by a Permitted Lease may constitute or be deemed to be Customer’s inventory (the “Inventory”):

  

	 	(a)	Customer hereby grants to KEF a security interest in such inventory, which will mean all Equipment offered or furnished under any contract of service or intended for sale or lease, any and all additions, attachments,
accessories and accessions thereto, any and all substitutions, replacements or exchanges therefor, any and all leases, subleases, rentals, accounts and contracts with respect to the Equipment which may now exist or hereafter arise, together with all
rights thereunder and all rental and other payments due and to become due thereunder, any and all proceeds payable for such property, any insurance, bonds and/or other proceeds of the property and all returned or repossessed Equipment now or at any
time or times hereafter in the possession or under the control of Customer or any Permitted User; provided, however, that Customer is not authorized to sell the Equipment or the Inventory, except as otherwise expressly provided in the
Agreement. 

  

	 	(b)	Customer also grants to KEF a security interest in all accounts receivable now owned by Customer or hereafter acquired or owned by Customer to the extent that such arise or result from any lease or other disposition of
any of the Equipment or the Inventory, including, but not limited to, any Permitted Lease or any right of Customer to payment for Equipment sold or leased whether or not evidenced by an instrument or chattel paper, and whether or not such right has
been earned by performance (the “Accounts Receivable”). 

  

	 	2.3	Further Assurances; Delivery of Permitted Lease. Customer agrees that at any time and from time to time, upon the written request of KEF, Customer will promptly and duly execute and deliver, or cause to be duly
executed and delivered, any and all further instruments and documents as KEF may reasonably deem desirable to perfect its security interest in the Permitted Leases, the Inventory and the Accounts Receivable including, without limitation, an
acknowledgment executed by the applicable Permitted User of (a) KEF’s interest in the Equipment and (b) the terms of this Agreement. Customer will deliver to KEF all original copies of the Permitted Leases promptly upon execution
thereof, and will mark prominently all other copies of a Permitted Lease “Not an Original”. As to any Equipment that is a titled motor vehicle, unless and until a Default has occurred, Customer will retain the original certificates of
title with respect to the Equipment. Upon the occurrence of a Default, upon receipt of KEF’s request therefor, Customer will deliver to KEF the original certificates of title with respect to the Equipment. 

 

	 	2.4	No Waiver by KEF. KEF’s failure to exercise any right hereunder will not be considered a waiver of such right or any other right. 

 

	3.	ADDITIONAL TERMS 

  

	 	3.1	No Further Transfer by Customer. OTHER THAN AS SET FORTH IN THIS CONSENT AGREEMENT, CUSTOMER WILL NOT, WITHOUT KEF’S PRIOR WRITTEN CONSENT, (a) ASSIGN, TRANSFER, PLEDGE, HYPOTHECATE OR OTHERWISE
DISPOSE OF THE AGREEMENT, THE OTHER LOAN DOCUMENTS, THE EQUIPMENT OR ANY INTEREST THEREIN, OR (b) LEASE OR LEND THE EQUIPMENT TO, OR PERMIT THE EQUIPMENT TO BE USED BY, ANYONE OTHER THAN CUSTOMER, A PERMITTED USER, OR CUSTOMER’S OR A
PERMITTED USER’S QUALIFIED EMPLOYEES AND/OR CONTRACTORS.  

  

					
	  

	Form No.: Consent Agreement.612	  		  	Page 2 of 3

	 	3.2	Terms Survive. The representations, warranties and covenants contained herein will be binding upon Customer and its successors and assigns, and the benefits thereof will extend to and include the successors and
assigns of KEF. All of KEF’s rights, privileges and indemnities contained herein will survive the expiration or other termination of the Agreement or any Permitted Lease. 

EXCEPT AS MODIFIED HEREBY, ALL OF THE TERMS, COVENANTS AND CONDITIONS OF THE AGREEMENT WILL REMAIN IN FULL FORCE AND EFFECT AND ARE IN ALL
RESPECTS HEREBY RATIFIED AND AFFIRMED. 
 IN WITNESS WHEREOF, KEF and Customer have executed this Agreement as of the date first
written above. 
  

									
	Customer:	 		 	KEF:
			
	LGSI EQUIPMENT OF INDIANA, LLC	 		 	KEY EQUIPMENT FINANCE, A DIVISION OF KEYBANK NATIONAL ASSOCIATION
					
	By:	 	  
	 		 	By:	 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	

  

					
	  

	Form No.: Consent Agreement.612	  	Signature Page to Consent Agreement	  	Page 3 of 3

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