Document:

WELLS FARGO & COMPANY 8-K

 

 Exhibit
4.2

 

[Face
of Note]

 

Unless
this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (“DTC”),
to the Company or its agent for registration of transfer, exchange or payment, and any certificate issued is registered in the
name of Cede & Co. or in such other name as requested by an authorized representative of DTC (and any payment is made to Cede & Co. or such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

	CUSIP
NO. 95001BBC7	FACE AMOUNT: $________

REGISTERED
NO. ___

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the S&P
500® Index

due June 3, 2020

 

WELLS
FARGO & COMPANY, a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the
“Company,” which term includes any successor corporation under the Indenture hereinafter referred to), for
value received, hereby promises to pay to CEDE & Co., or registered assigns,
an amount equal to the Maturity Payment Amount (as defined below), in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts, on the Stated Maturity Date. The “Initial
Stated Maturity Date” shall be June 3, 2020. If the Calculation Day (as defined below) is not postponed, the Initial
Stated Maturity Date will be the “Stated Maturity Date.” If the Calculation Day is postponed, the “Stated
Maturity Date” shall be the later of (i) the Initial Stated Maturity Date and (ii) three Business Days (as
defined below) after the Calculation Day as postponed. This Security shall not bear any interest.

Any
payments on this Security at Maturity will be made against presentation of this Security at the office or agency of the Company
maintained for that purpose in the City of Minneapolis, Minnesota and at any other office or agency maintained by the Company
for such purpose. 

“Face
Amount” shall mean, when used with respect to this Security, the amount
set forth on the face of this Security as its “Face Amount.”

    	 	 	 

    	 

    

Determination
of Maturity Payment Amount

The
“Maturity Payment Amount” of this Security will equal:

 

		•	if
                                         the Ending Level is greater than the Starting Level: the Face Amount plus the
                                         lesser of:

	 	(i)  		Face Amount x		Ending
    Level – Starting Level

    Starting Level		x Participation Rate  		; and

 

(ii)
the Maximum Return;

 

		•	if
                                         the Ending Level is less than or equal to the Starting Level, but greater than or equal
                                         to the Threshold Level: the Face Amount; or

 

		•	if
                                         the Ending Level is less than the Threshold Level: the Face Amount minus:

 

	 		Face Amount x	Threshold Level - Ending Level

 Starting Level	

 

All
calculations with respect to the Maturity Payment Amount will be rounded to the nearest one hundred-thousandth, with five one-millionths
rounded upward (e.g., 0.000005 would be rounded to 0.00001); and the Maturity Payment Amount will be rounded to the nearest cent,
with one-half cent rounded upward.

 

“Index”
shall mean the S&P 500® Index.

 

The
“Pricing Date” shall mean November 29, 2018.

 

The
“Starting Level” is 2737.76, the Closing Level of the Index on the Pricing Date.

 

The
“Closing Level” of the Index on any Trading Day means the official closing level of the Index reported by the
Index Sponsor on such Trading Day, as obtained by the Calculation Agent on such Trading Day from the licensed third-party market
data vendor contracted by the Calculation Agent at such time; in particular, taking into account the decimal precision and/or
rounding convention employed by such licensed third-party market data vendor on such date, subject to the provisions set forth
below under “Adjustments to the Index,” “Discontinuance of the Index” and “Market Disruption Events.”

 

The
“Ending Level” will be the Closing Level of the Index on the Calculation Day.

 

The
“Threshold Level” is 2190.208, which is equal to 80% of the Starting Level.

 

The
“Participation Rate” is 150%.

 

The
“Maximum Return” is 13.60% of the Face Amount of this Security.

 

    	 	2	 

    	 

    

“Index
Sponsor” shall mean S&P Dow Jones Indices LLC.

 

“Business
Day” shall mean a day, other than a Saturday or Sunday, that is neither a legal holiday nor a day on which banking institutions
are authorized or required by law or regulation to close in New York, New York.

 

A
“Trading Day” means a day, as determined by the Calculation Agent, on which (i) the Relevant Stock Exchanges
with respect to each security underlying the Index are scheduled to be open for trading for their respective regular trading sessions
and (ii) each Related Futures or Options Exchange is scheduled to be open for trading for its regular trading session.

 

The
“Related Futures or Options Exchange” for the Index means an exchange or quotation system where trading has
a material effect (as determined by the Calculation Agent) on the overall market for futures or options contracts relating to
the Index.

 

The
“Relevant Stock Exchange” for any security underlying the Index means the primary exchange or quotation system
on which such security is traded, as determined by the Calculation Agent.

 

The
“Calculation Day” shall be May 29, 2020. If such day is not a Trading Day, the Calculation Day will be postponed
to the next succeeding Trading Day. The Calculation Day is also subject to postponement due to the occurrence of a Market Disruption
Event (as defined below). If a Market Disruption Event occurs or is continuing with respect to the Index on the Calculation Day,
such Calculation Day will be postponed to the first succeeding Trading Day on which a Market Disruption Event has not occurred
and is not continuing; however, if such first succeeding Trading Day has not occurred as of the eighth Trading Day after the originally
scheduled Calculation Day, that eighth Trading Day shall be deemed to be the Calculation Day. If the Calculation Day has been
postponed eight Trading Days after the originally scheduled Calculation Day and a Market Disruption Event occurs or is continuing
on such eighth Trading Day, the Calculation Agent will determine the Closing Level of the Index on such eighth Trading Day in
accordance with the formula for and method of calculating the Closing Level of the Index last in effect prior to commencement
of the Market Disruption Event, using the closing price (or, with respect to any relevant security, if a Market Disruption Event
has occurred with respect to such security, its good faith estimate of the value of such security at the Scheduled Closing Time
of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular trading session of such
Relevant Stock Exchange) on such date of each security included in the Index. As used herein, “closing price”
means, with respect to any security on any date, the Relevant Stock Exchange traded or quoted price of such security as of the
Scheduled Closing Time of the Relevant Stock Exchange for such security or, if earlier, the actual closing time of the regular
trading session of such Relevant Stock Exchange.

 

“Calculation
Agent Agreement” shall mean the Calculation Agent Agreement dated as of January 24, 2018 between the Company and the
Calculation Agent, as amended from time to time.

 

    	 	3	 

    	 

    

“Calculation
Agent” shall mean the Person that has entered into the Calculation Agent Agreement with the Company providing for, among
other things, the determination of the Ending Level and the Maturity Payment Amount, which term shall, unless the context otherwise
requires, include its successors under such Calculation Agent Agreement. The initial Calculation Agent shall be Wells Fargo Securities,
LLC. Pursuant to the Calculation Agent Agreement, the Company may appoint a different Calculation Agent from time to time after
the initial issuance of this Security without the consent of the Holder of this Security and without notifying the Holder of this
Security.

 

Adjustments
to the Index

 

If
at any time the method of calculating the Index or a Successor Equity Index, or the closing level thereof, is changed in a material
respect, or if the Index or a Successor Equity Index is in any other way modified so that such index does not, in the opinion
of the Calculation Agent, fairly represent the level of such index had those changes or modifications not been made, then the
Calculation Agent will, at the close of business in New York, New York, on each date that the closing level of such index is to
be calculated, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary
in order to arrive at a level of an index comparable to the Index or Successor Equity Index as if those changes or modifications
had not been made, and the Calculation Agent will calculate the closing level of the Index or Successor Equity Index with reference
to such index, as so adjusted. Accordingly, if the method of calculating the Index or Successor Equity Index is modified so that
the level of such index is a fraction or a multiple of what it would have been if it had not been modified (e.g., due to
a split or reverse split in such equity index), then the Calculation Agent will adjust the Index or Successor Equity Index in
order to arrive at a level of such index as if it had not been modified (e.g., as if the split or reverse split had not
occurred).

 

Discontinuance
of the Index

If
the Index Sponsor discontinues publication of the Index, and the Index Sponsor or another entity publishes a successor or substitute
equity index that the Calculation Agent determines, in its sole discretion, to be comparable to the Index (a “Successor
Equity Index”), then, upon the Calculation Agent’s notification of that determination to the Trustee and the Company,
the Calculation Agent will substitute the Successor Equity Index as calculated by the Index Sponsor or any other entity and calculate
the Ending Level as described above. Upon any selection by the Calculation Agent of a Successor Equity Index, the Company will
cause notice to be given to the Holder of this Security.

In
the event that the Index Sponsor discontinues publication of the Index prior to, and the discontinuance is continuing on, the
Calculation Day and the Calculation Agent determines that no Successor Equity Index is available at such time, the Calculation
Agent will calculate a substitute Closing Level for the Index in accordance with the formula for and method of calculating the
Index last in effect prior to the discontinuance, but using only those securities that comprised the Index immediately prior to
that discontinuance. If a Successor Equity Index is selected or the Calculation Agent calculates a level as a substitute for the
Index, the Successor Equity Index or level will be used as a substitute for the Index for all purposes, including the purpose
of determining whether a Market Disruption Event exists.

    	 	4	 

    	 

    

If
on the Calculation Day the Index Sponsor fails to calculate and announce the level of the Index, the Calculation Agent will calculate
a substitute Closing Level of the Index in accordance with the formula for and method of calculating the Index last in effect
prior to the failure, but using only those securities that comprised the Index immediately prior to that failure; provided
that, if a Market Disruption Event occurs or is continuing on such day, then the provisions set forth above under the definition
of “Calculation Day” shall apply in lieu of the foregoing.

Market
Disruption Events 

A
“Market Disruption Event” means any of the following events as determined by the Calculation Agent in its sole
discretion:

 

		(A)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by the Relevant Stock Exchanges or otherwise relating to securities which then comprise
                                         20% or more of the level of the Index or any Successor Equity Index at any time during
                                         the one-hour period that ends at the Close of Trading on that day, whether by reason
                                         of movements in price exceeding limits permitted by those Relevant Stock Exchanges or
                                         otherwise.

		(B)	The
                                         occurrence or existence of a material suspension of or limitation imposed on trading
                                         by any Related Futures or Options Exchange or otherwise in futures or options contracts
                                         relating to the Index or any Successor Equity Index on any Related Futures or Options
                                         Exchange at any time during the one-hour period that ends at the Close of Trading on
                                         that day, whether by reason of movements in price exceeding limits permitted by the Related
                                         Futures or Options Exchange or otherwise.

		(C)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, securities that then comprise 20% or more of the level of the
                                         Index or any Successor Equity Index on their Relevant Stock Exchanges at any time during
                                         the one-hour period that ends at the Close of Trading on that day.

		(D)	The
                                         occurrence or existence of any event, other than an early closure, that materially disrupts
                                         or impairs the ability of market participants in general to effect transactions in, or
                                         obtain market values for, futures or options contracts relating to the Index or any Successor
                                         Equity Index on any Related Futures or Options Exchange at any time during the one-hour
                                         period that ends at the Close of Trading on that day.

		(E)	The
                                         closure on any Exchange Business Day of the Relevant Stock Exchanges on which securities
                                         that then comprise 20% or more of the level of the Index or any Successor Equity Index
                                         are traded or any Related Futures or Options Exchange prior to its Scheduled Closing
                                         Time unless the earlier closing time is announced by the Relevant Stock Exchange or Related
                                         Futures or Options Exchange, as

    	 	5	 

    	 

    

applicable,
at least one hour prior to the earlier of (1) the actual closing time for the regular trading session on such Relevant Stock
Exchange or Related Futures or Options Exchange, as applicable, and (2) the submission deadline for orders to be entered
into the Relevant Stock Exchange or Related Futures or Options Exchange, as applicable, system for execution at such actual closing
time on that day.

		(F)	The
                                         Relevant Stock Exchange for any security underlying the Index or Successor Equity Index
                                         or any Related Futures or Options Exchange fails to open for trading during its regular
                                         trading session.

For
purposes of determining whether a Market Disruption Event has occurred:

		(1)	the
                                         relevant percentage contribution of a security to the level of the Index or any Successor
                                         Equity Index will be based on a comparison of (x) the portion of the level of such
                                         Index attributable to that security and (y) the overall level of the Index or Successor
                                         Equity Index, in each case immediately before the occurrence of the Market Disruption
                                         Event;

		(2)	the
                                         “Close of Trading” on any Trading Day for the Index or any Successor
                                         Equity Index means the Scheduled Closing Time of the Relevant Stock Exchanges with respect
                                         to the securities underlying the Index or Successor Equity Index on such Trading Day;
                                         provided that, if the actual closing time of the regular trading session of any
                                         such Relevant Stock Exchange is earlier than its Scheduled Closing Time on such Trading
                                         Day, then (x) for purposes of clauses (A) and (C) of the definition of “Market
                                         Disruption Event” above, with respect to any security underlying the Index or Successor
                                         Equity Index for which such Relevant Stock Exchange is its Relevant Stock Exchange, the
                                         “Close of Trading” means such actual closing time and (y) for purposes of
                                         clauses (B) and (D) of the definition of “Market Disruption Event” above,
                                         with respect to any futures or options contract relating to the Index or Successor Equity
                                         Index, the “close of trading” means the latest actual closing time of the
                                         regular trading session of any of the Relevant Stock Exchanges, but in no event later
                                         than the Scheduled Closing Time of the Relevant Stock Exchanges;

		(3)	the
                                         “Scheduled Closing Time” of any Relevant Stock Exchange or Related
                                         Futures or Options Exchange on any Trading Day for the Index or any Successor Equity
                                         Index means the scheduled weekday closing time of such Relevant Stock Exchange or Related
                                         Futures or Options Exchange on such Trading Day, without regard to after hours or any
                                         other trading outside the regular trading session hours; and

		(4)	an
                                         “Exchange Business Day” means any Trading Day for the Index or any
                                         Successor Equity Index on which each Relevant Stock Exchange for the securities underlying
                                         the Index or any Successor Equity Index and each Related Futures or Options Exchange
                                         are open for trading during their respective regular

    	 	6	 

    	 

    

trading
sessions, notwithstanding any such Relevant Stock Exchange or Related Futures or Options Exchange closing prior to its Scheduled
Closing Time.

Calculation
Agent

The
Calculation Agent will determine the Maturity Payment Amount and the Ending Level. In addition, the Calculation Agent will (i)
determine if adjustments are required to the Closing Level of the Index under the circumstances described in this Security, (ii)
if publication of the Index is discontinued, select a Successor Equity Index or, if no Successor Equity Index is available, determine
the Closing Level of the Index under the circumstances described in this Security, and (iii) determine whether a Market Disruption
Event or non-Trading Day has occurred.

The
Company covenants that, so long as this Security is Outstanding, there shall at all times be a Calculation Agent (which shall
be a broker-dealer, bank or other financial institution) with respect to this Security.

All
determinations made by the Calculation Agent with respect to this Security will be at the sole discretion of the Calculation Agent
and, in the absence of manifest error, will be conclusive for all purposes and binding on the Company and the Holder of this Security.

Tax
Considerations

The
Company agrees, and by acceptance of a beneficial ownership interest in this Security each Holder of this Security will be deemed
to have agreed (in the absence of a statutory, regulatory, administrative or judicial ruling to the contrary), for United States
federal income tax purposes to characterize and treat this Security as a prepaid derivative contract that is an “open transaction.”

Redemption
and Repayment

This
Security is not subject to redemption at the option of the Company or repayment at the option of the Holder hereof prior to June
3, 2020. This Security is not entitled to any sinking fund.

Acceleration

If
an Event of Default, as defined in the Indenture, with respect to this Security shall occur and be continuing, the Maturity Payment
Amount (calculated as set forth in the next sentence) of this Security may be declared due and payable in the manner and with
the effect provided in the Indenture. The amount
payable to the Holder hereof upon any acceleration permitted under the Indenture will be equal to the Maturity Payment Amount
hereof calculated as provided herein as though the date of acceleration was the Calculation Day.

__________________

Reference
is hereby made to the further provisions of this Security set forth on the reverse hereof, which further provisions shall for
all purposes have the same effect as if set forth at this place.

    	 	7	 

    	 

    

Unless
the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature
or its duly authorized agent under the Indenture referred to on the reverse hereof by manual signature, this Security shall not
be entitled to any benefit under the Indenture or be valid or obligatory for any purpose.

[The
remainder of this page has been left intentionally blank]

 

 

    	 	8	 

    	 

    

IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed.

DATED: 

 

	 	WELLS FARGO & COMPANY
	 	 	 
	 	By:	 
	 	 	 
	 	 	Its:	 
	 	 	 
	 	 	 
	 	Attest:	 
	 	 	 
	 	 	Its:	 

 

TRUSTEE’S
CERTIFICATE OF

AUTHENTICATION

This
is one of the Securities of the 

series
designated therein described

in
the within-mentioned Indenture.

 

	CITIBANK, N.A.,	 
	 	as Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 
	 	 	 
	OR	 
	 	 	 
	WELLS FARGO BANK, N.A.,	 
	 	as Authenticating Agent for the Trustee	 
	 	 	 
	By:	 	 
	 	Authorized Signature	 

 

 

    	 	9	 

    	 

    

[Reverse
of Note]

 

 

WELLS
FARGO & COMPANY

 

MEDIUM-TERM
NOTE, SERIES S

 

Due
Nine Months or More From Date of Issue

 

Principal
at Risk Securities Linked to the S&P
500® Index

due June 3, 2020

 

This
Security is one of a duly authorized issue of securities of the Company (herein called the “Securities”), issued
and to be issued in one or more series under an indenture dated as of February 21, 2017, as amended or supplemented from
time to time (herein called the “Indenture”), between the Company and Citibank, N.A., as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture), to which Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities
thereunder of the Company, the Trustee and the Holders of the Securities, and of the terms upon which the Securities are, and
are to be, authenticated and delivered. This Security is one of the series of the Securities
designated as Medium-Term Notes, Series S, of the Company. The amount payable on the Securities of this series may be determined
by reference to the performance of one or more equity-, commodity- or currency-based indices, exchange traded funds, securities,
commodities, currencies, statistical measures of economic or financial performance, or a basket comprised of two or more of the
foregoing, or any other market measure or may bear interest at a fixed rate or a floating rate. The Securities of this series
may mature at different times, be redeemable at different times or not at all, be repayable
at the option of the Holder at different times or not at all and be denominated in different currencies.

The
Securities are issuable only in registered form without coupons and will be either (a) book-entry securities represented
by one or more Global Securities recorded in the book-entry system maintained by the Depositary or (b) certificated securities
issued to and registered in the names of, the beneficial owners or their nominees.

The
Company agrees, to the extent permitted by law, not to voluntarily claim the benefits of any laws concerning usurious rates of
interest against a Holder of this Security.

Modification
and Waivers 

The
Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations
of the Company and the rights of the Holders of the Securities of each series to be affected under the Indenture at any time by
the Company and the Trustee with the consent of the Holders of a majority in principal amount of the Securities at the time Outstanding
of all series to be affected, acting together as a class. The Indenture also contains provisions permitting the Holders of a majority
in principal amount of the Securities of all series at the time Outstanding affected by certain provisions of the Indenture, acting
together as a class, on

    	 	10	 

    	 

    

behalf
of the Holders of all Securities of such series, to waive compliance by the Company with those provisions of the Indenture. Certain
past defaults under the Indenture and their consequences may be waived under the Indenture by the Holders of a majority in principal
amount of the Securities of each series at the time Outstanding, on behalf of the Holders of all Securities of such series. Solely
for the purpose of determining whether any consent, waiver, notice or other action or Act to be taken or given by the Holders
of Securities pursuant to the Indenture has been given or taken by the Holders of Outstanding Securities in the requisite aggregate
principal amount, the principal amount of this Security will be deemed to be equal to the amount set forth on the face hereof
as the “Face Amount” hereof. Any such consent or waiver by the Holder of this Security shall be conclusive and binding
upon such Holder and upon all future Holders of this Security and of any Security issued upon the registration of transfer hereof
or in exchange herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this Security.

Defeasance

Section 403
and Article Fifteen of the Indenture and the provisions of clause (ii) of Section 401(1)(B) of the Indenture, relating
to defeasance at any time of (a) the entire indebtedness on this Security and (b) certain restrictive covenants, upon
compliance by the Company with certain conditions set forth therein, shall not apply to this Security. The remaining provisions
of Section 401 of the Indenture shall apply to this Security.

Authorized
Denominations

This
Security is issuable only in registered form without coupons in denominations of $1,000 or any amount in excess thereof which
is an integral multiple of $1,000.

Registration
of Transfer

Upon
due presentment for registration of transfer of this Security at the office or agency of the Company in the City of Minneapolis,
Minnesota, a new Security or Securities of this series, with the same terms as this Security, in authorized denominations for
an equal aggregate Face Amount will be issued to the transferee in exchange herefor, as provided in the Indenture and subject
to the limitations provided therein and to the limitations described below, without charge except for any tax or other governmental
charge imposed in connection therewith.

This
Security is exchangeable for definitive Securities in registered form only if (x) the Depositary notifies the Company that
it is unwilling or unable to continue as Depositary for this Security or if at any time the Depositary ceases to be a clearing
agency registered under the Securities Exchange Act of 1934, as amended, and a successor depositary is not appointed within 90 days
after the Company receives such notice or becomes aware of such ineligibility, (y) the Company in its sole discretion determines
that this Security shall be exchangeable for definitive Securities in registered form and notifies the Trustee thereof or (z)
an Event of Default with respect to the Securities represented hereby has occurred and is continuing. If this Security is exchangeable
pursuant to the preceding sentence, it shall be exchangeable for definitive Securities in registered form, having the same date
of issuance, Stated Maturity Date and other terms and of authorized denominations aggregating a like amount. 

    	 	11	 

    	 

    

This
Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary
to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor of the Depositary
or a nominee of such successor. Except as provided above, owners of beneficial interests in this Global Security will not be entitled
to receive physical delivery of Securities in definitive form and will not be considered the Holders hereof for any purpose under
the Indenture.

Prior
to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes, whether or not this
Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary.

Obligation
of the Company Absolute

No
reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the Maturity Payment Amount at the times, place and rate, and in the coin
or currency, herein prescribed, except as otherwise provided in this Security.

No
Personal Recourse

No
recourse shall be had for the payment of the Maturity Payment Amount, or for any claim based hereon, or otherwise in respect hereof,
or based on or in respect of the Indenture or any indenture supplemental thereto, against any incorporator, stockholder, officer
or director, as such, past, present or future, of the Company or any successor corporation, whether by virtue of any constitution,
statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance
hereof and as part of the consideration for the issuance hereof, expressly waived and released.

Defined
Terms

All
terms used in this Security which are defined in the Indenture shall have the meanings assigned to them in the Indenture unless
otherwise defined in this Security.

Governing
Law

This
Security shall be governed by and construed in accordance with the law of the State of New York, without regard to principles
of conflicts of laws.

    	 	12	 

    	 

    

ABBREVIATIONS

 

 

The
following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written
out in full according to applicable laws or regulations:

 

	TEN COM	--	as tenants in common
	 	 	 
	TEN ENT	--	as tenants by the entireties
	 	 	 
	JT TEN	--	as joint tenants with right
	 	 	of survivorship and not
	 	 	as tenants in common

 

	UNIF GIFT MIN ACT --	 	 Custodian 	 
	 	(Cust)	 	(Minor)

 

	Under Uniform Gifts to Minors Act	 
	 	 
	 	 
	(State)	 

 

Additional abbreviations
may also be used though not in the above list.

 

FOR VALUE RECEIVED,
the undersigned hereby sell(s) and transfer(s) unto

 

	Please Insert Social Security or	 
	Other Identifying Number of Assignee
	 	 
	 	 

 

 

	 
	 
	 

(Please
print or type name and address including postal zip code of Assignee)

 

 

    	 	13	 

    	 

    

the
within Security of WELLS FARGO & COMPANY and does hereby irrevocably constitute and appoint __________________ attorney to
transfer the said Security on the books of the Company, with full power of substitution in the premises.

 

 

Dated:
_________________________

  

 

	 	 
	 	 
	 	 
	 	 

 

 

 

NOTICE:
The signature to this assignment must correspond with the name as written upon the face of the within instrument in every particular,
without alteration or enlargement or any change whatever.

 

 

    	 	14Exhibit 10.1

TWELFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

THIS TWELFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) dated as of November 28, 2018 is by and among CELADON GROUP, INC. (the “Borrower”), the Guarantors identified on the signature pages hereto, the Lenders identified on the signature pages hereto and BANK OF AMERICA, N.A., in its capacity as Administrative Agent (in such capacity, the “Administrative Agent”).

W I T N E S S E T H

A. Certain credit facilities have been provided to the Loan Parties pursuant to that certain Amended and Restated Credit Agreement (as amended, modified, supplemented, increased and extended from time to time, the “Credit Agreement”) dated as of December 12, 2014 by and among the Borrower, the Guarantors identified therein, the Lenders identified therein and the Administrative Agent.

B. The Borrower has informed the Administrative Agent and the Lenders that it intends to consummate one or more Qualifying Liquidity Events and use the proceeds of such Qualifying Liquidity Events to repay certain Obligations.

C. The Borrower has requested that the Lenders make certain amendments to the Credit Agreement.

D. The Lenders have agreed to do so on the terms and conditions set forth in this Amendment.

NOW, THEREFORE, IN CONSIDERATION of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Defined Terms.  Capitalized terms used herein but not otherwise defined herein shall have the meanings provided to such terms in the Credit Agreement.

2. Estoppel, Acknowledgement and Reaffirmation.  The undersigned Loan Parties hereby acknowledge and agree that, as of the date hereof, the Outstanding Amount of the Committed Loans and L/C Obligations constitute valid and subsisting obligations of such Loan Parties to the Lenders that are not subject to any credits, offsets, defenses, claims, counterclaims or adjustments of any kind.  The undersigned Loan Parties hereby acknowledge the Loan Parties’ obligations under the respective Loan Documents to which they are party.  Each of the undersigned Loan Parties hereby (i) acknowledges that it has granted Liens in favor of the Administrative Agent pursuant to, and is a party to, the Collateral Documents (including, with respect to certain Guarantors, pursuant to the Joinder Agreements executed by such Guarantors); (ii) reaffirms that each of the Liens created and granted in or pursuant to the Collateral Documents is valid and subsisting as of the date hereof; (iii) agrees that such Liens shall continue in effect as security for all Obligations; and (iv) agrees that this Amendment shall in no manner impair or otherwise adversely affect such Liens.

3.  Audit Events.

 

(a)     The Administrative Agent and the Lenders hereby acknowledge and agree that, until the earlier of (x) June 28, 2019 and (y) such time as the Borrower has received a determination from its auditors that the financial statements of the Borrower as delivered prior to the date hereof impacted by the Audit Events (as defined in that certain Eighth Amendment to Credit Agreement dated as of March 30, 2018 by and among the parties hereto), or as the same may be restated as deemed necessary by its auditors, can be relied upon, notice of which shall be provided to the Administrative Agent promptly and in any event within one (1) Business Day:

(i)       any representations and warranties as to preparation of financial statements of the Borrower in accordance with GAAP made or deemed to be made by the Loan Parties in connection with the delivery of (x) such financial statements under Sections 6.01(a), 6.01(b), and 6.02(o) of the Credit Agreement or (y) a Request for Credit Extension delivered under Section 4.02(c) of the Credit Agreement, shall be deemed to be qualified in their entirety by reference to and disclosure of the Audit Events, and no such representation or warranty shall be deemed untrue solely as a result of the occurrence of the Audit Events;

(ii)     the delivery of annual financial statements for Borrower’s fiscal years ended June 30, 2017 and 2018 that are not audited and not accompanied by a report and opinion of an independent certified public accountant shall not, in and of itself, constitute a failure to satisfy the requirements set forth in Section 6.01(a) of the Credit Agreement; and

(iii)     the existence of the Audit Events shall not, in and of itself, constitute a failure to satisfy the condition precedent set forth in Section 4.02(a) of the Credit Agreement.

(b)       Prior to June 28, 2019, the Loan Parties shall not make any Investment pursuant to Section 7.02(e) or (f) of the Credit Agreement, except for the following in an aggregate amount not to exceed $4,000,000 at any one time outstanding: (i) payroll, settlement, and similar advances to employees, drivers (including independent contractors), consultants or other service providers to cover matters that are expected at the time of such advances ultimately to be treated as expenses for accounting purposes; (ii) reasonable and customary advances of relocation expenses to employees and repair expense to independent contractors in the ordinary course of business; and (iii) advances to the Borrower’s Mexican Subsidiaries in the ordinary course of business based on accounts receivable generated by such Subsidiaries not to exceed $750,000 at any one time outstanding.

4.      Amendments to Credit Agreement.  Subject to the satisfaction of the conditions precedent set forth below, the Credit Agreement is hereby amended as follows:

(a)       Section 1.01 of the Credit Agreement is hereby amended by deleting the following definitions in their entirety and substituting the following therefor:

“Aggregate Commitments” means the Commitments of all Lenders.  The amount of the Aggregate Commitments in effect (i) from the Twelfth Amendment Effective Date through and including January 30, 2019 shall be $238,240,000; (ii) from January 31, 2019 through and including February 27, 2019 shall be $178,240,000; (iii) from February 28, 2019 through and including March 30, 2019 shall be $128,240,000 and (iv) from and after March 31, 2019 shall be $93,240,000, in each case, as such amount may be reduced pursuant to this Agreement.

“Excluded Dispositions” means, collectively, any Disposition of the following assets and the Loan Parties’ entry into one or more agreements with respect to such Disposition:

	
Real property located at 1651 Old Greensboro Road, Kernersville, North Carolina

	
Real property located at 2499 McGaw Road, Obetz, Ohio

	
Real property located at 2847 East 600 South, Warren, Indiana

	
Refrigerated Trailers (as defined in the Tenth Amendment)

 

2

 

“Fixed Charge Coverage Ratio” means, with respect to the Borrower and its Subsidiaries on a consolidated basis for any period of twelve consecutive months, and on a Pro Forma Basis (if applicable), the ratio of (a) the sum for such period of (i) Adjusted EBITDAR, minus (ii) dividends and distributions to shareholders of Borrower declared or paid, to (b) the sum for such period of (i) interest expense, plus (ii) cash taxes, plus (iii) scheduled principal payments of Indebtedness to the extent paid, plus (iv) Rent Expense to the extent paid.

“L/C Expiration Date” means March 2, 2020.

“Maturity Date” means June 28, 2019.

“Maximum Borrowing Amount” means (i) as of the Twelfth Amendment Effective Date, an amount equal to $203,240,000; (ii) as of January 31, 2019, an amount equal to $143,240,000 minus the amount by which the Maximum Borrowing Amount has been reduced pursuant to Section 2.05 due to the Disposition permitted by Section 7.05(d)(ii) after the Twelfth Amendment Effective Date and prior to January 31, 2019; (iii) as of February 28, 2019, an amount equal to $93,240,000 minus the amount by which the Maximum Borrowing Amount has been reduced pursuant to Section 2.05 due to the Disposition permitted by Section 7.05(d)(ii) after the Twelfth Amendment Effective Date and prior to February 28, 2019 and (iv) as of March 31, 2019, an amount equal to $58,240,000 minus the amount by which the Maximum Borrowing Amount has been reduced pursuant to Section 2.05 due to the Disposition permitted by Section 7.05(d)(ii) after the Twelfth Amendment Effective Date and prior to March 31, 2019, in each case, as such amount may be subsequently reduced from time to time pursuant to Section 2.05 or increased up to an amount not to exceed the Aggregate Commitments with the written consent of the Required Lenders.

“Maximum Outstanding Amount” means (i) as of the Twelfth Amendment Effective Date, an amount equal to $238,240,000; (ii) as of January 31, 2019, an amount equal to $178,240,000 minus the amount by which the Maximum Outstanding Amount has been reduced pursuant to Section 2.05 due to the Disposition permitted by Section 7.05(d)(ii) after the Twelfth Amendment Effective Date and prior to January 31, 2019; (iii) as of February 28, 2019, an amount equal to $128,240,000 minus the amount by which the Maximum Outstanding Amount has been reduced pursuant to Section 2.05 due to the Disposition permitted by Section 7.05(d)(ii) after the Twelfth Amendment Effective Date and prior to February 28, 2019 and (iv) as of March 31, 2019, an amount equal to $93,240,000 minus the amount by which the Maximum Outstanding Amount has been reduced pursuant to Section 2.05 due to the Disposition permitted by Section 7.05(d)(ii) after the Twelfth Amendment Effective Date and prior to March 31, 2019, in each case, as such amount may be subsequently reduced from time to time pursuant to Section 2.05 or increased up to an amount not to exceed the Aggregate Commitments with the written consent of the Required Lenders.

(b) Section 1.01 of the Credit Agreement is hereby amended by adding the following definitions to such section in the appropriate alphabetical order:

3

“Twelfth Amendment” means that certain Twelfth Amendment to Amended and Restated Credit Agreement, dated as of the Twelfth Amendment Effective Date, by and among the Loan Parties (excluding the Mexican Loan Parties), the Administrative Agent and the Lenders.

“Twelfth Amendment Budget” shall mean the consolidated forecast of cash flows for the Borrower and its Subsidiaries for the thirteen (13) weeks immediately following the Twelfth Amendment Effective Date, delivered to the Administrative Agent on or prior to the Twelfth Amendment Effective Date.

“Twelfth Amendment Effective Date” means November 28, 2018.

(c)       The definition of “Minimum Collateral Amount” in Section 1.01 of Credit Agreement is hereby amended by (i) replacing each occurrence of the amount “105%” in such definition with the amount “110%” (ii) replacing the words “provisions of Section 2.15(a)(i), (a)(ii) or (a)(iii)” in clause (ii) of such definition with the words “provisions of Sections 2.14(a), 2.15(a)(i), 2.15(a)(ii), 2.15(a)(iii) or 6.26”.

(d)       The definition of “Total Assets” in Section 1.01 of Credit Agreement is hereby amended by replacing the amount “$85,000,000” in such definition with the amount “$93,000,000”.

(e)        Section 2.02(a) of the Credit Agreement is hereby amended by replacing the time “11:00 am” in such section with the time “1:00 pm”.

(f)         Section 2.02(b) of the Credit Agreement is hereby amended by replacing the time “1:00 pm” in such section with the time “2:30 pm”.

(g)        Section 2.03(a)(i)(1) of the Credit Agreement is hereby amended by replacing the words “until the L/C Expiration Date” in such section with the words “until the Maturity Date”.

(h)        Section 2.03(i) of the Credit Agreement is hereby amended by adding the following sentence to the end of such section:

 Notwithstanding anything to the contrary contained in this Agreement (except for the provisions of Section 2.08(b)), from and after March 1, 2019, the Applicable Rate with respect to Letters of Credit shall be 8.00% per annum.

(i)         Section 2.05(f) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(f) If for any reason, at any time, the ratio of (a) Total Assets as set forth in the Asset Coverage Ratio Certificate most recently delivered pursuant to Section 6.02(h) to (b) Total Outstandings is less than 1.0 to 1.0 at any time, the Borrower shall on the next Business Day prepay Loans and/or Cash Collateralize the Dollar Equivalent of the L/C Obligations in the aggregate amount necessary to reduce the Total Outstandings to an amount that would comply with the applicable foregoing ratio, without a corresponding reduction of the Aggregate Commitments, the Maximum Outstanding Amount or the Maximum Borrowing Amount.

4

(j)        Section 2.08(d) of the Credit Agreement is hereby amended by inserting the words “(except for the provisions of Section 2.08(b))” immediately after the words “Notwithstanding anything to the contrary set forth in this Agreement”.

(k)       Section 2.09(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(b)           [Reserved].

(l)         Section 4.02(f) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(f)            After giving effect to the proposed Credit Extension, the ratio of (a) Total Assets as set forth in the Asset Coverage Ratio Certificate most recently delivered pursuant to Section 6.02(h) to (b) Total Outstandings shall not be less than 1.0 to 1.0.

(m)       Sections 6.02(j) and (k) of the Credit Agreement are hereby amended and restated to read as follows:

(j)             prior to 4:00 pm Eastern time on the third Business Day of each calendar week, (1) a consolidated forecast of cash flows for the Borrower and its Subsidiaries for the thirteen (13) weeks following each such delivery date, in form and detail satisfactory to the Administrative Agent and (2) a schedule of professional fee obligations of the Borrower and its Subsidiaries that have been invoiced to date detailed by firm and including the amount owed to such firm and the timing and amount of projected payments to such firm for the period included in such forecast;

(k)            prior to 4:00 pm Eastern time on the third Business Day of each calendar week, (1) a report reconciling actual cash flows for the Borrower and its Subsidiaries with (i) the previously-delivered weekly forecast and (ii) the Twelfth Amendment Budget and (2) a report listing (i) all Vehicles, excluding Lien Prohibited Vehicles, for which Lien Vehicle Documentation has not been delivered to the Administrative Agent’s designee as of the end of the preceding calendar week and (ii) all Vehicles for which Lien Vehicle Documentation has been delivered to the Administrative Agent’s designee during the preceding calendar week for the purpose of satisfying the requirements of Section 6.17;

(n)       Section 6.02 of the Credit Agreement is hereby amended by (i) deleting the word “and” at the end of clause (dd), (ii) replacing the period at the end of clause (ee) with a semicolon and (iii) adding the following new clauses (ff) and (gg) to such section:

(ff)           on or before March 31, 2019, a certificate signed by a Responsible Officer of the Borrower confirming that the Borrower has executed one or more letters of intent and paid the necessary due diligence or similar upfront fees required thereunder in connection with a prospective transaction or transactions, the closing of which would enable the Borrower to repay in full all Obligations under the Loan Documents on or before the Maturity Date; and

(gg)         promptly upon the request of any Lender, (x) copies of any letters of intent, term sheets or other documents executed in connection with potential Qualifying Liquidity Event transactions and (y) updates on the status of any such transactions.

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(o)       Sections 6.12(a), (b), (c) and (d) of the Credit Agreement is hereby amended and restated in its entirety as follows:

6.12         Financial Covenants.

(a) Lease-Adjusted Total Debt To EBITDAR Ratio.  Maintain on a consolidated basis a Lease-Adjusted Total Debt to EBITDAR Ratio not greater than the ratio opposite the applicable testing date set forth in the table below:

	
Testing Date

 

	
Maximum Lease-Adjusted 

Total Debt to EBITDAR 

Ratio

	
June 30, 2018

	
6.09:1.00

	
July 31, 2018

	
5.91:1.00

	
August 31, 2018

	
5.61:1.00

	
September 30, 2018

	
5.19:1.00

	
October 31, 2018

	
4.86:1.00

	
November 30, 2018

	
4.61:1.00

	
December 31, 2018

	
4.61:1.00

	
January 31, 2019

	
3.39:1.00

	
February 28, 2019

	
2.95:1.00

	
March 31, 2019

	
3.14:1.00

	
April 30, 2019

	
3.24:1.00

	
May 31, 2019

	
3.48:1.00

(b) Fixed Charge Coverage Ratio.  Maintain on a consolidated basis a Fixed Charge Coverage Ratio not less than the ratio opposite the applicable testing date set forth in the table below:

	
Testing Date

 

	
Minimum Fixed Charge Coverage Ratio

	
June 30, 2018

	
0.90:1.00

	
July 31, 2018

	
0.95:1.00

	
August 31, 2018

	
1.00:1.00

	
September 30, 2018

	
1.00:1.00

	
October 31, 2018

	
1.00:1.00

	
November 30, 2018

	
1.00:1.00

	
December 31, 2018

	
1.00:1.00

	
January 31, 2019

	
1.00:1.00

	
February 28, 2019

	
1.00:1.00

	
March 31, 2019

	
1.00:1.00

	
April 30, 2019

	
1.00:1.00

	
May 31, 2019

	
1.00:1.00

(c) Asset Coverage Ratio.  Not permit the Asset Coverage Ratio to be less than 1.0 to 1.0 as of the last Business Day of any calendar week.

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(d) Maximum Disbursements.  Not permit the aggregate amount of Disbursements of the Loan Parties to exceed the amount opposite the applicable period set forth in the table below:

	
Period

 

	
Maximum Disbursements

	
July 1, 2018 through and 

including July 28, 2018

	
$97,100,000

	
July 29, 2018 through and

including September 1, 2018

	
$113,500,000

	
September 2, 2018 through and

including September 29, 2018

	
$73,900,000

	
September 30, 2018 through and 

including November 3, 2018

	
$117,500,000

	
November 4, 2018 through and

including December 1, 2018

	
$82,700,000

	
December 2, 2018 through and

including December 29, 2018

	
$78,557,000

	
December 30, 2018 through and

including January 26, 2019

	
$77,858,000

	
January 27, 2019 through and 

including March 2, 2019

	
$79,092,000

	
March 3, 2019 through and

including March 30, 2019

	
$47,726,000

	
March 31, 2019 through and 

including April 27, 2019

	
$48,690,000

	
April 28, 2019 through and 

including June 1, 2019

	
$67,612,000

	
June 2, 2019 through and

including June 29, 2019

	
$48,729,000

(p)         The last sentence of Section 6.17 of the Credit Agreement is hereby amended and restated in its entirety as follows:

Notwithstanding the foregoing, the Loan Parties shall not be required to comply with the requirements of this Section 6.17 with respect to any Vehicle for which the applicable Lien Vehicle Documentation has been, as of the Eleventh Amendment Effective Date, lost or destroyed or otherwise is not in the possession or control of the Loan Parties so long as the aggregate net orderly liquidation value of such Vehicles does not exceed $3,000,000; provided that the net book value (if any) of any such Vehicle shall be excluded from the calculation of Total Assets.

(q)          A new Section 6.26 is hereby added to the Credit Agreement to read as follows:

6.26       Letters of Credit.  Without limiting the Loan  Parties’ obligations under Section 2.14(a), upon the earlier of (i) the Maturity Date or (ii) repayment in full of all Obligations (other than L/C Obligations and, to the extent constituting Obligations, (i) any Banking Services Obligations and (ii) any obligations under any Swap Contract), the Loan Parties shall either (x) Cash Collateralize the Dollar Equivalent of the L/C Obligations (in an amount equal to the Minimum Collateral Amount with respect thereto) or (y) obtain replacement letters of credit or take such other actions that would permit the termination of the L/C Obligations in a manner satisfactory to the L/C Issuer, the Administrative Agent and each Lender.

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(r)            Section 7.05(d) of the Credit Agreement is hereby amended and restated in its entirety as follows:

(d)             (i) Dispositions of trucks, truck-tractors, trailers and semi-trailers in the ordinary course of business while there exists no Event of Default so long as the net book value of all assets Disposed of in any fiscal year does not exceed 15% of the net book value of the consolidated assets of the Loan Parties as of the last day of the preceding fiscal year and (ii) the Disposition of the real property located at 6299 W. CR 300, South Greenfield, Indiana so long as such Disposition is made to an unaffiliated third party pursuant to an arms-length transaction; and

(s)            Schedule 2.01 of the Credit Agreement is hereby amended and restated in its entirety in the form attached hereto as Schedule 2.01.

5.             Twelfth Amendment Fee.  The Borrower shall pay to the Administrative Agent, for the ratable benefit of each Lender, an amendment fee in an amount equal to four percent (4.0%) of the Aggregate Commitments as of the date of, and after giving effect to, this Amendment (the “Twelfth Amendment Fee”), which Twelfth Amendment Fee shall be fully earned and non-refundable as of the Twelfth Amendment Effective Date; provided, that (i) if all Obligations under the Loan Documents are repaid in full on or before January 31, 2019, an amount equal to 100% of the Twelfth Amendment Fee shall be forgiven by the Lenders, (ii) if all Obligations under the Loan Documents are repaid in full on or before February 28, 2019, an amount equal to 87.5% of the Twelfth Amendment Fee shall be forgiven by the Lenders and (iii) if all Obligations under the Loan Documents are repaid in full on or before March 29, 2019, an amount equal to 75% of the Twelfth Amendment Fee shall be forgiven by the Lenders.  Subject to the foregoing, the Twelfth Amendment Fee shall be due and payable as follows: (x) an amount equal to 40% of the Twelfth Amendment Fee shall be due and payable on April 1, 2019; (y) an amount equal to 30% of the Twelfth Amendment Fee shall be due and payable on May 1, 2019 and (z) the remainder of the Twelfth Amendment Fee shall be due and payable on June 3, 2019; provided, that the entire amount of the Twelfth Amendment Fee shall be automatically due and payable upon the earlier to occur of acceleration of the Obligations under the Loan Documents or, subject to the proviso in the first sentence of this Section 5, repayment in full of all Obligations under the Loan Documents.

6.              Acknowledgment of Dissolution.  The undersigned Loan Parties hereby confirm that The American Franchising Group LLC, an Indiana limited liability company (“AFG”), has been administratively dissolved by the state of Indiana as permitted under Section 5 of the Eleventh Amendment and that AFG has no material assets or operations.  The parties hereto acknowledge and agree that (i) once AFG is fully dissolved and ceases to exist, it will automatically cease to be a Loan Party and (ii) AFG’s execution, delivery, and performance of this Amendment is necessary to wind up and liquidate its business and affairs.

7.              Conditions Precedent.  This Amendment shall become effective as of the date hereof upon the satisfaction (or waiver by the Administrative Agent) of the following conditions precedent:

(a)            receipt by the Administrative Agent of counterparts of this Amendment duly executed by the Borrower, the Guarantors (excluding the Mexican Loan Parties), each Lender and the Administrative Agent;

(b)            receipt by the Administrative Agent of an updated organizational chart of the Loan Parties and each of their respective Subsidiaries giving effect to (i) the Borrower’s Disposition of its interest in 19th Capital Group, LLC and (ii) the dissolution of subsidiaries permitted under Section 5 of the Eleventh Amendment;

8

(c)            receipt by the Administrative Agent of (i) a consolidated forecast of cash flows for the Borrower and its Subsidiaries for the thirteen (13) weeks immediately following the Twelfth Amendment Effective Date, in form and detail reasonably satisfactory to the Lenders and (ii) a schedule of professional fee obligations of the Borrower and its Subsidiaries that have been invoiced to date detailed by firm and including the amount owed to such firm and the timing and amount of projected payments to such firm, for the period included in such forecast;

(d)            receipt by the Administrative Agent of opinions of legal counsel to the Borrower in form and substance reasonably acceptable to the Administrative Agent, addressed to the Administrative Agent and each Lender, dated as of the date hereof; and

(e)             receipt by the Administrative Agent of a certificate of each Loan Party (excluding the Mexican Loan Parties) dated as of the date hereof signed by a Responsible Officer of such Loan Party (A) certifying and attaching resolutions adopted by the board of directors or equivalent governing body of such Loan Party approving this Amendment and (B) in the case of the Borrower, certifying that, after giving effect to this Amendment, (1) the representations and warranties of each Loan Party contained in Article V of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, in each case, other than with respect to the Audit Events, and (2) no Default exists after giving effect to this Amendment.

8.             Payment of Fees and Expenses.  Without limiting the Loan Parties’ obligations under Section 10.04 of the Credit Agreement, the Borrower shall, promptly, and in any event within 5 Business Days of demand therefor, reimburse (i) the Administrative Agent for all fees and expenses of the Administrative Agent (including without limitation, all fees and expenses of US, Mexican and Canadian counsel to the Administrative Agent and financial advisors to the Administrative Agent and all appraisal, inspection and other costs incurred by the Administrative Agent) and (ii) each Lender for all reasonable out-of-pocket travel expenses of, and fees and expenses of counsel to, such Lender, in each case, incurred in connection with the Loan Documents, including without limitation this Amendment.

9.             Release.  In consideration of the Administrative Agent’s and the Lenders’ willingness to enter into this Amendment, each of the undersigned Loan Parties hereby releases and forever discharges the Administrative Agent, the Lenders and each of the Administrative Agent’s and the Lenders’ predecessors, successors, assigns, officers, managers, directors, employees, agents, attorneys, representatives, and affiliates (hereinafter all of the above collectively referred to as the “Lender Group”), from any and all claims, counterclaims, demands, damages, debts, suits, liabilities, actions and causes of action of any nature whatsoever, in each case to the extent arising in connection with the Loan Documents or any of the negotiations, activities, events or circumstances arising out of or related to the Loan Documents through the date of this Amendment, whether arising at law or in equity, whether known or unknown, whether liability be direct or indirect, liquidated or unliquidated, whether absolute or contingent, foreseen or unforeseen, and whether or not heretofore asserted, which any of the undersigned Loan Parties may have or claim to have against any entity or other Person within the Lender Group.

10.           Amendment is a “Loan Document”.  This Amendment is a Loan Document and all references to a “Loan Document” in the Credit Agreement and the other Loan Documents (including, without limitation, all such references in the representations and warranties in the Credit Agreement and the other Loan Documents) shall be deemed to include this Amendment.

9

11.           Representations and Warranties; No Default.  Each undersigned Loan Party represents and warrants to the Administrative Agent and each Lender that (a) any forecasts of cash flows and other projections delivered to the Administrative Agent or any Lender prior to the Twelfth Amendment Effective Date reflect the Borrower’s good faith estimate of the matters described therein, (b) the representations and warranties of each undersigned Loan Party contained in Article V of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection herewith or therewith, are true and correct in all material respects on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct in all material respects as of such earlier date, in each case, other than with respect to the Audit Events, and (c) after giving effect to this Amendment, no Default exists, including without limitation any Default under Section 8.01(e) of the Credit Agreement.

12.            No Other Changes.  Except as modified hereby, all of the terms and provisions of the Loan Documents shall remain in full force and effect.

13.            Counterparts; Delivery.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of this Amendment by facsimile or other electronic imaging means shall be effective as an original.

14.            Amendment, Modification and Waiver.  This Amendment may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto.

15.            Governing Law.  This Amendment shall be deemed to be a contract made under, and for all purposes shall be construed in accordance with, the laws of the State of Indiana.

[SIGNATURE PAGES FOLLOW]

10

IN WITNESS WHEREOF, the parties hereto have caused this Twelfth Amendment to Amended and Restated Credit Agreement to be duly executed as of the date first above written.

	
BORROWER:

	
CELADON GROUP, INC.

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	
GUARANTORS:

	
CELADON TRUCKING SERVICES, INC.

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
CELADON LOGISTICS SERVICES, INC.

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
QUALITY EQUIPMENT LEASING, LLC

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	 	 
	 	
CELADON E-COMMERCE, INC.

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	
GUARANTORS:

	
A&S SERVICES GROUP, LLC

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
OSBORN TRANSPORTATION, INC.

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	 	 
	 	
CELADON CANADIAN HOLDINGS, LIMITED

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	 	 
	 	
HYNDMAN TRANSPORT LIMITED

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	 	 
	 	
BEE LINE, INC.

	 	 	 
	 	
By:

	
/s/ Chase Welsh

	 	
Name:

	
Chase Welsh

	 	
Title:

	
Secretary

	
GUARANTORS:

	
BUCKLER TRANSPORT, INC.

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
CELADON DRIVING ACADEMY, LLC

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	 	 
	 	
CELADON REALTY, LLC

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	 	 
	 	
DISTRIBUTION, INC.

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
EAGLE LOGISTICS SERVICES INC.

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	GUARANTORS:	
QUALITY COMPANIES LLC

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	 	 
	 	
TAYLOR EXPRESS, INC.

	 	 	 
	 	
By:

	
/s/ Chase Welsh

	 	
Name:

	
Chase Welsh

	 	
Title:

	
Secretary

	
GUARANTORS:

	
THE AMERICAN FRANCHISING GROUP LLC

	 	 	 
	 	
By:

	
/s/ Paul Svindland

	 	
Name:

	
Paul Svindland

	 	
Title:

	
Chief Executive Officer

	 	 	 
	 	 	 
	 	
A&S REAL ESTATE HOLDINGS, LLC

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
BUCKLER LOGISTICS, INC.

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
HUNT VALLEY EQUIPMENT CO., LLC

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
J. DAVID BUCKLER, INC.

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
QUALITY INSURANCE LLC

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

 

	
GUARANTORS:

	
VORBAS, LLC

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
A&S KINARD LOGISTICS, LLC

	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	 	 	 
	 	 	 
	 	
BUCKLER DISTRIBUTION CENTER, L.P.

	 	 	 
	 	By:	J. David Buckler, Inc., its general partner 
	 	 	 
	 	
By:

	
/s/ Thomas S. Albrecht

	 	
Name:

	
Thomas S. Albrecht

	 	
Title:

	
Chief Financial Officer

	
ADMINISTRATIVE AGENT:

	
BANK OF AMERICA, N.A., as Administrative Agent

	 	 	 
	 	
By:

	
/s/ Andrew J. Maidman

	 	
Name:

	
Andrew J. Maidman

	 	
Title:

	
Senior Vice President

	 	 	 
	
LENDERS:

	
BANK OF AMERICA, N.A., as a Lender

	 	 	 
	 	 	 
	 	
By:

	
/s/ Andrew J. Maidman

	 	
Name:

	
Andrew J. Maidman

	 	
Title:

	
Senior Vice President

	 	 	 
	 	 	 
	 	
WELLS FARGO BANK, N.A., as a Lender

	 	 	 
	 	 	 
	 	
By:

	
/s/ Troy F Jefferson

	 	
Name:

	
Troy F Jefferson

	 	
Title:

	
Senior Vice President

	 	 	 
	 	 	 
	 	
CITIZENS BANK, N.A., as a Lender

	 	 	 
	 	 	 
	 	
By:

	
/s/ Gregory R.D. Clark

	 	
Name:

	
Gregory R.D. Clark

	 	
Title:

	
Executive Vice President

Schedule 2.01

SCHEDULE 2.01

COMMITMENTS

 AND APPLICABLE PERCENTAGES

	
Lender

	
Commitment

	
Applicable Percentage

	 	 	 
	
Bank of America, N.A.

	
$99,266,666.75

	
41.6666667%

	 	 	 
	
Wells Fargo Bank, N.A.

	
$99,266,666.75

	
41.6666667%

	 	 	 
	Citizens Bank, N.A.	 $39,706,666.50	16.6666666%
	 	 	 
	
Total

	
$238,240,000.00

	
100.00%

 

Back to Form 8-K

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