Document:

Exhibit 10.5

 

RETIREMENT AGREEMENT AND GENERAL RELEASE

 

This Retirement Agreement and General Release (“Agreement”) is entered into by and between
Leslie J. Jezuit (“Jezuit”), an
individual, and Quixote Corporation (“Quixote”),
a Delaware corporation with its principal place of business in Chicago,
Illinois.

 

AGREEMENT

 

1.             Change in Employment.
Jezuit shall resign his position as Quixote’s Chief Executive Officer and
President effective December 31, 2008. From January 1, 2009 through June 30,
2009 (the “Transition Period”),
Jezuit shall remain employed as an officer of Quixote in his position as the
Chairman of Quixote’s Board of Directors. Effective June 30, 2009, Jezuit
shall retire and resign his employment with Quixote (the “Separation Date”). Following the Separation
Date, Jezuit shall continue to serve as a Director for the remainder of his
term, and, if so elected by the Board of Directors, shall continue as the
Chairman of the Board, but not as an employee of Quixote.

 

2.             Transition Period
Compensation.

 

(a)           Jezuit
acknowledges receipt of all compensation, except accrued but unused vacation
time, due from Quixote through the payroll period immediately prior to the date
he signed this Agreement. Jezuit acknowledges that he will receive all owed
accrued but unused vacation time on the first payroll date following December 31,
2008.

 

(b)           During
the Transition Period, Jezuit’s annual base salary shall be One Hundred Twenty
Thousand and 00/100 Dollars ($120,000.00), payable at a rate of $10,000 per
month in accordance with Quixote’s payroll schedule in equal installments in
accord with Quixote’s payroll schedule.

 

(c)           During
the Transition Period, Jezuit shall be entitled to participate in Quixote’s
employee benefits programs at the level applicable to a full-time employee

 

3.             Separation Benefits:
Subject to the provisions of this Agreement and if Jezuit does not revoke his
acceptance of this Agreement, Quixote will provide Jezuit with the following
separation benefits (the “Separation Benefits”):

 

(a)           On
December 30, 2008, Quixote shall pay Jezuit  a single lump sum
payment of Six Hundred and Ninety-Two Thousand Five Hundred and 00/100 Dollars
($692,500.00), less required tax withholding.

 

(b)           If
on or before June 30, 2009, Jezuit executes and delivers, and does not
revoke, the Agreement attached as Schedule 1 to this Agreement, makes a timely
election for COBRA health insurance continuation benefits and remains eligible
for COBRA health insurance continuation benefits, then commencing on July 1,
2009, Quixote shall 

 

 

provide the first eighteen (18) months of the COBRA health insurance
continuation for Jezuit without cost.

 

Jezuit acknowledges that the Separation Benefits exceed the amount to
which Jezuit would be entitled in the absence of the Agreement. Jezuit shall
bear sole responsibility of all taxes associated with the payment of the
Separation Benefits; provided that the Separation Benefits shall be subject to
applicable income tax and FICA withholding.

 

4.             Consideration. Jezuit
acknowledges that the Separation Benefits constitute a substantial economic
benefit to Jezuit, and that they constitute good and valuable consideration for
the various commitments undertaken by Jezuit in this Agreement.

 

5.             Parties Released. For
purposes of this Agreement, the term “Releasees”
means Quixote, its past and present parents, subsidiaries, divisions, and
affiliated entities; their respective predecessors, successors, assigns,
benefit plans, and plan administrators; and their respective past and present
shareholders, members, partners, directors, managers, trustees, officers,
employees, agents, independent contractors, attorneys and insurers.

 

6.             General Release.
Jezuit, for and on behalf of himself and each of his personal and legal
representatives, heirs, devisees, executors, successors and assigns, hereby
acknowledges full and complete satisfaction of, and fully and forever waives,
releases, acquits, and discharges Releasees from any and all claims, causes of
action, demands, liabilities, damages, obligations, and debts (collectively
referred to as “Claims”), of every
kind and nature, whether known or unknown, suspected or unsuspected, or fixed
or contingent, which Jezuit holds as of the date Jezuit signs this Agreement,
or at any time previously held against Releasees, or any of them, arising out
of any matter whatsoever (with the exception of breaches of this Agreement).
Quixote, on behalf of itself and each of the Releasees, hereby acknowledges
full and complete satisfaction of, and fully and forever waives, releases,
acquits, and discharges Jezuit from any and all Claims of every kind and
nature, whether known or unknown, suspected or unsuspected, or fixed or
contingent, which any of the Releasees holds as of the date Quixote signs this
Agreement, or at any time previously held against Jezuit, arising out of any
matter whatsoever (with the exception of breaches of this Agreement, or matters
involving fraud or criminal activity).This General Release specifically
includes, but is not limited to, any and all Claims:

 

(a)           Arising
out of or in any way related to Jezuit’s employment with Quixote or the
termination of his employment;

 

(b)           Arising
out of or in any way related to any contract or agreement between Jezuit and
Quixote;

 

(c)           Arising
under or based on the Equal Pay Act of 1963; Title VII of the Civil Rights Act
of 1964, as amended; Section 1981 of the Civil Rights Act of 1866; the
Americans With Disabilities Act of 1990; the Family and Medical Leave Act of
1993; the Fair Labor Standards Act of 1938; the National Labor Relations Act;
the Worker Adjustment and Retraining Notification Act of 1988; Employee
Retirement Income Security Act of 1974 (ERISA) (excepting claims for vested
benefits, if any, to which Jezuit is legally entitled thereunder); the Illinois
Constitution; the Illinois Wage Payment 

 

2

 

and Collection Act; the Illinois Minimum Wage Law, the Illinois Human
Rights Act; and the Illinois Whistleblower Act;

 

(d)           Arising
under or based on the Age Discrimination in Employment Act of 1967 (ADEA), as
amended by the Older Workers Benefit Protection Act (OWBPA), and alleging a
violation thereof based on any action or failure to act by Releasees, or any of
them, at any time prior to the effective date of this Agreement; and

 

(e)           Arising
out of or in any way related to any claim under a federal, state, county or
local constitutional provision, law, statute, ordinance, judicial or
administrative decision, order, policy or regulation prohibiting employment
discrimination, providing for the payment of wages or benefits, providing for a
paid or unpaid leave of absence, otherwise creating rights or claims for
employees, including, but not limited to, any and all claims alleging breach of
public policy, whistleblowing, retaliation, the implied obligation of good
faith and fair dealing, any express or implied oral or written contract;
handbook; manual; policy statement or employment practice, or alleging
misrepresentation, defamation, libel, slander, interference with contractual
relations, intentional or negligent infliction of emotional distress, invasion
of privacy, false imprisonment, assault, battery, fraud, negligence, or
wrongful discharge.

 

7.             Intended Scope of Release.
It is the intention of the parties and is fully understood and agreed by them
that this Agreement includes a General Release of all Claims (with the
exception of breaches of this Agreement and claims for vested benefits, if any,
to which Jezuit is legally entitled under ERISA), which Jezuit holds or previously
held against Releasees, or any of them, or which any of the Releasees holds or
previously held against Jezuit, whether or not they are specifically referred
to herein. No reference herein to any specific claim, statute or obligation is
intended to limit the scope of this General Release and, notwithstanding any
such reference, this Agreement shall be effective as a full and final bar to
all Claims of every kind and nature, whether known or unknown, suspected or
unsuspected, or fixed or contingent, released in this Agreement.  Notwithstanding the foregoing, nothing
contained herein shall waive or release any right that Jezuit may have to be
indemnified by Quixote against any claims arising from or relating to Jezuit’s
service as an officer, director and employee of Quixote.

 

8.             Employee Waiver of Rights.
As part of the foregoing General Release, Jezuit is waiving all of his rights
to any recovery, compensation, or other legal, equitable or injunctive relief
(including, but not limited to, compensatory damages, liquidated damages,
punitive damages, back pay, front pay, attorneys’ fees, and reinstatement to
employment), from the Releasees, or any of them, in any administrative,
arbitral, judicial or other action brought by or on behalf of Jezuit in
connection with any Claim released in this Agreement.

 

9.             Covenant Not to Sue.
In addition to all other obligations contained in this Agreement, Jezuit agrees
that he will not initiate, bring or prosecute any suit or action against any of
Releasees in any federal, state, county or municipal court, with respect to any
of the Claims released in this Agreement. Notwithstanding the forgoing, nothing
in this Agreement shall preclude Jezuit from bringing suit to challenge the validity
or enforceability of this Agreement under the Age Discrimination in Employment
Act as amended by the Older Workers Benefit Protection Act.

 

3

 

10.           Remedies for Breach. If
Jezuit, or anyone on his behalf, initiates, brings or prosecutes any suit or
action against Releasees, or any of them, in any federal, state, county or
municipal court, with respect to any of the Claims released in this Agreement
(except to challenge the validity or enforceability of this Agreement under the
Age Discrimination in Employment Act, as amended by the Older Workers Benefit
Protection Act), or if Jezuit breaches any of the terms of this Agreement, then
Jezuit shall  be liable for the payment of all damages, costs and expenses
(including attorneys’ fees) incurred by Releasees, or any of them, in
connection with such suit, action or breach. 
If Quixote or any Releasee, or anyone on behalf of any such party,
initiates, brings or prosecutes any suit or action against Jezuit in any federal,
state, county or municipal court, with respect to any of the Claims released in
this Agreement or if Quixote breaches any of the terms of this Agreement, then
Quixote shall  be liable for the payment of all damages, costs and
expenses (including attorneys’ fees) incurred by Jezuit in connection with such
suit, action or breach.

 

11.           No Admission of Liability.
Nothing in this Agreement constitutes or shall be construed as an admission of
liability on the part of Jezuit or Releasees, or any of them. Releasees
expressly deny any liability of any kind to Jezuit, and Jezuit expressly denies
any liability of any kind to each Releasee, and particularly any liability
arising out of or in any way related to Jezuit’s employment with Quixote or the
termination of his employment.

 

12.           Nondisclosure of Confidential
Information. With respect to Quixote’s trade secrets and other confidential
information, Jezuit hereby reaffirms and agrees to abide by all confidentiality
and nondisclosure obligations to which he is subject under any agreement with
Quixote, his fiduciary obligations as an officer and director of Quixote, and
the Illinois Trade Secrets Act. In addition to (not in lieu of) the foregoing,
Jezuit hereby agrees to keep confidential and not to use or disclose to others
for his benefit or the benefit of others Quixote’s trade secrets and other
Confidential Information. The term “Confidential
Information” includes, but is not limited to, information relating
to Quixote’s trade secrets and Quixote’s methods of doing business; financial
and tax projections, reports and plans and obligations; corporate equity and
debt positions; sales, marketing, and service strategies, programs, and
procedures; customers and clients, including, but not limited to, their
particularized requirements and preferences, and the identity, authority, and
responsibilities of their key contact persons; payment methods; manufacturing
and vendor information; pricing and cost structures; compensation, incentive
and benefits plans; financial position and business plans; computer databases;
other financial information; research and development projects; new product and
service developments; and any other information of Quixote or any of its
shareholders, employees, vendors, or customers that Quixote informs Jezuit, or
that Jezuit should know by virtue of his position or the circumstances in which
he learned it, is to kept confidential. For purposes of this paragraph 12, “Quixote”
includes its subsidiaries.

 

13.           Solicitation of Employees.
During Jezuit’s employment with Quixote and for the twenty-four (24) month
period following the termination of his employment (“Restricted Period”), with or without cause, and regardless of
whether any payments are made to Jezuit under this Agreement as a result of
such termination, Jezuit shall not solicit, participate in or promote the
solicitation of any Employee to leave the employ of Quixote, or, on behalf of
himself or any other person, hire, employ or engage any such person; provided
however that the foregoing restriction shall not prohibit Jezuit or a firm with
which he is employed or affiliated 

 

4

 

from (i) publishing and receiving responses to a general
solicitation for employment in a general circulation newspaper, magazine,
website or similar medium, or (ii) hiring an Employee of Quixote who has
not been employed by Quixote for a period of at least six (6) months.  Jezuit further agrees that during the
Restricted Period, if a current Employee contacts Jezuit about prospective
employment, Jezuit will inform that Employee that he cannot discuss the matter
further without informing Quixote. For purposes of this paragraph 13, “Quixote”
includes its subsidiaries and “Employee” means an individual employed by
Quixote at any time during the six (6) month period prior to the
termination Jezuit’s employment with Quixote.

 

14.           Noncompetition. During
the Restricted Period, Executive shall not engage directly or indirectly in any
of the following acts:

 

(i)            enter
into or engage in any business which competes with the business of Quixote in
any country where Quixote or its subsidiaries are doing business as of the date
of Jezuit’s termination;

 

(ii)           solicit
customers, business, patronage or orders for, or sell, any products and
services in competition with, or for any business, wherever located, that
competes with the business of Quixote or its subsidiaries in any country where
Quixote or its subsidiaries are doing business as of the date of termination;

 

(iii) divert, entice or otherwise take
away any customers, business, patronage or orders of Quixote or its
subsidiaries in any country where Quixote or its subsidiaries are doing
business as of the date of termination, or attempt to do so; or

 

(iv) promote or assist, financially or
otherwise, any person, firm, association, partnership, corporation or other
entity engaged in any business which competes with Quixote or its subsidiaries
in any country where Quixote is doing business as of the date of termination;

 

provided, however, Jezuit may, without violating the provisions of this
paragraph 14, consult with industry trade associations and not for profit
groups, such as ARTBA, AHUA, and AASHTO.

 

For the purposes of this paragraph 14, but without limitation thereof,
Jezuit will be in violation thereof if Jezuit engages in any or all of the
activities set forth therein directly as an individual on Jezuit’s own account,
or indirectly as a general partner, joint venturer, employee, agent,
salesperson, consultant, officer and/or partnership, limited liability company,
or corporation in which Jezuit or Jezuit’s spouse, child or parent owns,
directly or indirectly, individually or in the aggregate, more than five
percent (5%) of the limited partnership interests, limited liability company
interests or outstanding stock, as the case may be.

 

15.           Existing Agreements.

 

(a)           The
Severance and Non-Competition Agreement, dated July 25, 2008, entered into
by Jezuit and Quixote is superseded in its entirety by this Agreement and shall
have no force or effect whatsoever.

 

5

 

(b)           The
Amended and Restated Change of Control Agreement dated July 25, 2008,
entered into by Jezuit and Quixote shall remain in full force and effect in
accordance with its terms.

 

(c)           The
Stock Option Agreements dated August 27, 1999, August 16, 2000, July 23,
2002, July 1, 2003, August 17, 2004, August 17, 2005, August 17,
2006 and August 20, 2008 entered into by Jezuit and Quixote shall remain
in full force and effect in accordance with their terms.

 

(d)  With respect to the Restricted
Stock Agreement dated August 31, 2007  entered into by Jezuit and
Quixote, all shares granted to Jezuit that have vested as of December 31,
2008 belong to Jezuit under the terms of that agreement, and all shares granted
to Jezuit that have not vest as of December 31, 2008 are forfeited.

 

16.           Consideration Period. Jezuit is advised to consult with an attorney of his
choice prior to signing this Agreement. Jezuit understands that he
has a period of twenty-one (21) days within which to consider and accept the
Agreement. This twenty-one (21) day period begins to run on December 23,
2008, which Jezuit acknowledges is the date on which he received a copy of this
Agreement.

 

17.           Revocation Period. Jezuit understands that he has the right to revoke this
Agreement at any time within seven (7) days after he signs it
and that the Agreement shall not become effective or enforceable until this
revocation period has expired without revocation.

 

18.           Nondisparagement.
Jezuit shall not make any disparaging remarks about the Releasees which are
likely to cause harm to Releasees, collectively or individually, or their
products and services. The Board of Directors and Quixote’s Chief Executive
Officer (subsequent to Jezuit), Chief Financial Officer, and General Counsel
shall not make any disparaging remarks about Jezuit which are likely to cause
harm to him.

 

19.           Warranty of Understanding
and Voluntary Nature of Agreement. Jezuit acknowledges that he has
carefully read and fully understands all of the provisions of this Agreement;
that he knows and understands the rights he is waiving by signing this
Agreement; and that he has entered into the Agreement knowingly and
voluntarily, without coercion, duress or overreaching of any sort.

 

20.           Severability. The
provisions of this Agreement are fully severable. Therefore, if any provision
of this Agreement is for any reason determined to be invalid or unenforceable,
such invalidity or unenforceability will not affect the validity or
enforceability of any of the remaining provisions. Furthermore, any invalid or
unenforceable provisions shall be modified or restricted to the extent and in
the manner necessary to render the same valid and enforceable, or, if such
provision cannot under any circumstances be modified or restricted, it shall be
excised from the Agreement without affecting the validity or enforceability of
any of the remaining provisions. The parties agree that any such modification,
restriction or excision may be accomplished by their mutual written agreement
or, alternatively, by disposition of a court or other tribunal.

 

6

 

21.           Entire
Agreement/Integration. This Agreement constitutes the sole and entire
agreement between Jezuit and Quixote with respect to the subjects addressed in
it, and supersedes all prior or contemporaneous agreements, understandings, and
representations, oral and written, with respect to those subjects.

 

22.           No Waiver By Quixote.
No waiver, modification or amendment of any of the provisions of this Agreement
shall be valid and enforceable unless in writing and executed by Jezuit and
Quixote’s President.

 

23.           Successors and Assigns.
This Agreement shall be binding upon, and shall inure to the benefit of, Jezuit
and his personal and legal representatives, heirs, devisees, executors,
successors and assigns, and Quixote and its successors and assigns.

 

24.           Choice of Law. This
Agreement and any amendments hereto shall be governed by and construed in
accordance with the laws of the State of Illinois, without regard to conflicts
of law principles.

 

AGREED:

 

	
  QUIXOTE CORPORATION

  	
   

  	
  LESLIE J. JEZUIT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Daniel P. Gorey

  	
  12/23/08     

  	
   

  	
  /s/ Leslie J. Jezuit

  	
  12/23/08               

  
	
                           Executive
  VP

  	
  Date     

  	
   

  	
   

  	
  Date     

  

 

7

 

SCHEDULE 1

 

AGREEMENT

 

This Agreement (“Agreement”)
is entered into by and between Leslie J. Jezuit (“Jezuit”), an individual, and Quixote Corporation (“Quixote”), a Delaware corporation with its
principal place of business in Chicago, Illinois.

 

1.             Resignation.
Jezuit resigns his employment with Quixote Corporation, effective June 30,
2009 (“Resignation Date”).

 

2.             Compensation
owed. Jezuit acknowledges receipt of all compensation, including, but not
limited to, any and all unused vacation time, due from Quixote through the
payroll period immediately prior to the Resignation Date. Jezuit and Quixote
acknowledge that Jezuit will receive a lump-sum payment equal to any final
compensation earned but not yet paid to him on Quixote’s next regular payday
following the Resignation Date.

 

3.             Extension of
Retirement Agreement and General Release. The Retirement Agreement and
General Release previously entered into between Jezuit and Quixote (“Retirement Agreement”), is hereby extended
through the Resignation Date. The terms and provisions of the Retirement
Agreement are incorporated by reference herein and made a part hereof.

 

4.             Consideration.
In consideration for this Resignation Agreement, Jezuit shall be provided the
Separation Benefits set forth in paragraph 3(b) of the Retirement
Agreement, which Jezuit acknowledges constitute good and valuable consideration
for the various commitments undertaken by Jezuit in the Resignation Agreement
and the Retirement Agreement.

 

5.             Revocation
Period. Jezuit understands that he has the right to revoke this Resignation
Agreement at anytime within seven (7) days after he signs it and that the
Agreement shall not become effective or enforceable until the revocation period
has expired without revocation.

 

AGREED:

 

	
  QUIXOTE CORPORATION

  	
   

  	
  LESLIE J. JEZUIT

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Date    

  	
   

  	
  Date     

  
				

 

8Exhibit 10.6

 

WAIVER, FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

AND REAFFIRMATION OF GUARANTIES

 

THIS
WAIVER, FIFTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND
REAFFIRMATION OF GUARANTIES, dated as of February 9, 2009 (this “Fifth Amendment”), is entered into by and between Quixote
Corporation, a Delaware corporation (the “Borrower”),
whose address is 35 East Wacker Drive, Chicago, Illinois 60601, and Quixote
Transportation Safety, Inc., Transafe Corporation, Energy Absorption Systems, Inc.,
Energy Absorption Systems (AL) LLC, Surface Systems, Inc., Nu-Metrics, Inc.,
and Highway Information Systems, Inc., as Subsidiary Guarantors, (each
being referred to herein as a “Guarantor” and
collectively referred to herein as the “Guarantors”),
and Bank of America, N.A., as successor by merger to LaSalle Bank National
Association, a national banking association (the “Lender”),
whose address is 135 South LaSalle Street, Chicago, Illinois 60603.

 

R E C I TAL S:

 

A.            Borrower and Lender entered into
that certain Amended and Restated Credit Agreement, dated as of April 20,
2005 (the “Original Credit Agreement”), as
amended by that certain First Amendment to Amended and Restated Credit
Agreement and Reaffirmation of Guaranties dated as of December 1, 2006,
(the “First Amendment”), that certain Second
Amendment to Amended and Restated Credit Agreement and Reaffirmation of
Guaranties dated as of March 15, 2007 (the “Second
Amendment”), that certain Third Amendment to Amended and Restated
Credit Agreement and Reaffirmation of Guaranties dated as of November 7,
2007 (the “Third Amendment”) and that certain
Fourth Amendment to Amended and Restated Credit Agreement and Reaffirmation of
Guaranties dated as of November 7, 2008 (the “Fourth
Amendment”, and together with the Original Credit Agreement, the
First Amendment, the Second Amendment and the Third Amendment, the “Credit Agreement”) pursuant to which Credit Agreement Lender
has made a Revolving Loan to Borrower evidenced by that certain Amended and
Restated Revolving Loan Note, dated as of November 7, 2007, in the maximum
principal amount of $40,000,000, executed by Borrower and made payable to the
order of Lender (the “Revolving Note”).

 

B.            In connection with the Original
Credit Agreement, the Guarantors executed and delivered to Lender that certain
Guaranty dated as of May 16, 2003 in favor of Lender, as amended by that
Reaffirmation and Amendment of Subsidiary Guaranty dated as of April 20,
2005 (the “Guaranty”).

 

C.            Borrower has failed to comply with Section 7.4(D) and
7.4(E) of the Credit Agreement for the period ending December 31,
2008 (the “Existing Defaults”).  Borrower has requested that Bank waive the
Existing Defaults and Bank has agreed to waive the Existing Defaults on the
terms and conditions set forth herein.

 

D.            Borrower and the Guarantors have
also requested, and Lender has agreed to, the modification of certain terms
contained in the Credit Agreement as set forth herein, all pursuant to the
terms and conditions hereinafter set forth herein.

 

NOW
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged,
Borrower, the Guarantors and Lender hereby agree as follows:

 

 

A G R E E MEN T S:

 

1.             RECITALS.  The foregoing Recitals are hereby made a part
of this Fifth Amendment.

 

2.             DEFINITIONS.  Capitalized words and phrases used herein
without definition shall have the respective meanings ascribed thereto in the
Credit Agreement.

 

3.             WAIVER.  Subject to the terms hereof, Lender, hereby
waives the Existing Defaults.  Lender and
Borrower hereby agree that the foregoing waiver of the Existing Defaults shall
in no way be deemed to be a waiver or forbearance of any other default, any
Unmatured Default or any other Event of Default, whether now existing or
hereafter arising, under the Credit Agreement (whether occurring before or
after giving effect to this Fifth Amendment) or any other Loan Document.

 

4.             AMENDMENTS TO
THE CREDIT AGREEMENT.

 

4.1           Section 1.1
of the Credit Agreement.

 

(a)           The
definition of “Revolving Loan Commitment” in Section 1.1 of the Credit
Agreement is hereby deleted in its entirety and restated as follows:

 

“Revolving Loan Commitment” means the obligation of
Lender to make Revolving Loans and to issue Letters of Credit in an aggregate
amount not exceeding Fifteen Million and 00/100 Dollars ($15,000,000) as such
amount may be modified from time to time pursuant to these the terms of this
Agreement.

 

(b)           The
definition of “Revolving Loan Termination Date: is hereby deleted in its
entirety and replaced with the following:

 

“Revolving Loan Termination Date” means November 1, 2009.

 

4.2           Section 2.13
of the Credit Agreement.  Section 2.13(D)(ii) is
hereby amended by deleting the existing pricing grid in its entirety and
replacing it with the following:

 

	
  Level

  	
   

  	
  Maximum

  Total Leverage

  Ratio

  	
   

  	
  Applicable

  Eurodollar

  Margin/L/C Fee

  Percentage

  	
   

  	
  Applicable ABR

  Margin

  	
   

  	
  Commitment

  Fee

  Percentage

  	
   

  
	
  V

  	
   

  	
  >5.00

  	
   

  	
  3.75

  	
  %

  	
  3.75

  	
  %

  	
  0.75

  	
  %

  
	
  IV

  	
   

  	
  >4.00 BUT <5.00

  	
   

  	
  3.25

  	
  %

  	
  3.25

  	
  %

  	
  0.75

  	
  %

  
	
  III

  	
   

  	
  >3.00 BUT <4.00

  	
   

  	
  2.75

  	
  %

  	
  2.75

  	
  %

  	
  0.50

  	
  %

  
	
  II

  	
   

  	
  >2.00 BUT <3.00

  	
   

  	
  2.25

  	
  %

  	
  2.25

  	
  %

  	
  0.50

  	
  %

  
	
  I

  	
   

  	
  <2.00

  	
   

  	
  1.75

  	
  %

  	
  1.75

  	
  %

  	
  0.375

  	
  %

  

 

4.3           Section 7.3(F) of
the Credit Agreement.  Section 7.3(F) of
the Credit Agreement is hereby deleted in its entirety and restated as follows:

 

(F)         Restricted Payments.  The Borrower shall not declare or make any
Restricted Payments without the prior written consent of the Lender.

 

4.4           Revolving
Note.  All references in the Credit
Agreement to the Revolving Note 

 

2

 

in the form of “Exhibit G” to the Credit Agreement shall be deemed
to be references to the Second Amended and Restated Revolving Note in the form
of Exhibit A attached hereto and made a part hereof (the “Second Amended Note”).

 

5.             REAFFIRMATION OF
GUARANTIES.  Each of the Guarantors
hereby expressly (a) consents to the execution by Borrower and Lender of
this Fifth Amendment, (b) acknowledges that the “Guaranteed Debt” (as
defined in each of the Guaranties) includes all of the obligations and
liabilities owing from Borrower to Lender, including, but not limited to, the
obligations and liabilities of Borrower to Lender under and pursuant to the
Credit Agreement, as amended from time to time, and as evidenced by the Revolving
Note, as modified, extended and/or replaced from time to time, (c) reaffirms,
assumes and binds themselves in all respects to all of the obligations,
liabilities, duties, covenants, terms and conditions that are contained in
their respective Guaranty, (d) agrees that all such obligations and
liabilities under their respective Guaranty shall continue in full force and
effect and shall not be discharged, limited, impaired or affected in any manner
whatsoever, and (e) represents and warrants that each of the
representations and warranties made by such Guarantor in any of the documents
executed in connection with the Loans remain true and correct as of the date
hereof.

 

6.             REPRESENTATIONS
AND WARRANTIES.  To induce Lender to
enter into this Fifth Amendment, Borrower and each Guarantor hereby certifies,
represents and warrants to Lender that:

 

6.1           Organization.  Borrower and each Guarantor is a corporation
or a limited liability company duly organized, existing and in good standing
under the laws of its state or organization with full and adequate corporate or
limited liability power, as the case may be, to carry on and conduct its
business as presently conducted. 
Borrower and each Guarantor is duly licensed or qualified in all foreign
jurisdictions wherein the nature of its activities require such qualification
or licensing.  The Articles of
Incorporation or Organization, as the case may be, Bylaws (other than an
amendment to the By-laws of Borrower dated July 24, 2008) or Operating
Agreement, as the case may be, Resolutions and Incumbency Certificate of
Borrower and each Guarantor have not been changed or amended since the
certified copies thereof were delivered to Lender in connection with the
Original Credit Agreement and the First Amendment.  The state issued organizational
identification number for Borrower and each Guarantor is listed on Schedule
I hereto.  The exact legal name of
Borrower and each Guarantor is as set forth in the preamble of this Fifth
Amendment, and neither Borrower nor any Guarantor currently conducts, nor has
it during the last five (5) years conducted, business under any other name
or trade name.  Neither Borrower nor any
Guarantor will change its name, its organizational identification number, if it
has one, its type of organization, its jurisdiction of organization or other
legal structure.

 

6.2           Authorization.  Borrower and each Guarantor is duly
authorized to execute and deliver this Fifth Amendment and Borrower is and will
continue to be duly authorized to borrow monies under the Credit Agreement, as
amended hereby, and to perform its obligations under the Credit Agreement, as
amended hereby.

 

6.3           No
Conflicts.  The execution and
delivery of this Fifth Amendment and the performance by Borrower and each
Guarantor of its obligations under the Credit Agreement, as amended hereby, do
not and will not conflict with any provision of law or of the articles of
incorporation or bylaws of Borrower or any Guarantor or of any agreement
binding upon Borrower or any Guarantor.

 

6.4           Validity
and Binding Effect.  The Credit
Agreement, as amended hereby, is a legal, valid and binding obligation of
Borrower and each Guarantor, enforceable against Borrower and each Guarantor in
accordance with its terms, except as enforceability may be 

 

3

 

limited by bankruptcy, insolvency or other similar laws of general
application affecting the enforcement of creditors’ rights or by general
principles of equity limiting the availability of equitable remedies.

 

6.5           Compliance
with Credit Agreement.  The
representation and warranties set forth in Section VI of the Credit
Agreement, as amended hereby, are true and correct with the same effect as if
such representations and warranties had been made on the date hereof, with the
exception that all references to the financial statements shall mean the
financial statements most recently delivered to Lender and except for such
changes as are specifically permitted under the Credit Agreement.  In addition, other than as waived in Section 2
hereof, Borrower and each Guarantor has complied with and is in compliance with
all of the covenants set forth in the Credit Agreement, as amended hereby,
including, but not limited to, those set forth in Section VII thereof.

 

6.6           No
Event of Default.  As of the date
hereof, no Event of Default under Section VII of the Credit Agreement, as
amended hereby, or event or condition which, with the giving of notice or the
passage of time, or both, would constitute an Event of Default, has occurred or
is continuing.

 

6.7           No
Subordinated Debt Default.  As of the
date hereof, no default under any of the documents evidencing or securing any
of the Subordinated Debt, or event or condition which, with the giving of
notice or the passage of time, or both, would constitute a default under any of
the documents evidencing or securing any of the Subordinated Debt, has occurred
or is continuing.

 

6.8           Schedules
to Credit Agreement.  Other than as
shown by the updated Schedules attached hereto as Exhibit A, the
Schedules attached to the Credit Agreement are true and correct as of the date
hereof.

 

7.             CONDITIONS
PRECEDENT.  This Fifth Amendment
shall become effective as of the date above first written after receipt by
Lender of the following:

 

7.1           Fifth
Amendment.  This Fifth Amendment
executed by Borrower, the Guarantors, and Lender.

 

7.2           Second
Amended Note.  The Second Amended
Note executed by Borrower.

 

7.3           Resolutions.  A certified copy of Resolutions of the board
of directors of Borrower and each Guarantor authorizing the execution, delivery
and performance of this Fifth Amendment and related loan documents.

 

7.4           Certificate
of Good Standing.  Certificates of
Good Standing for Borrower and each Guarantor from their respective
jurisdictions of organization.

 

7.5           Amendment
Fee.  An amendment fee in the amount
of $37,500.

 

7.6           Other
Documents.  Such other documents,
certificates and/or opinions of counsel as Lender may request.

 

4

 

8.             GENERAL.

 

8.1           Governing
Law; Severability.  This Fifth
Amendment shall be construed in accordance with and governed by the laws of
Illinois.  Wherever possible each
provision of the Credit Agreement and this Fifth Amendment shall be interpreted
in such manner as to be effective and valid under applicable law, but if any
provision of the Credit Agreement and this Fifth Amendment shall be prohibited
by or invalid under such law, such provision shall be ineffective to the extent
of such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of the Credit Agreement and this Fifth
Amendment.

 

8.2           Successors
and Assigns.  This Fifth Amendment
shall be binding upon Borrower, the Guarantors, and Lender and their respective
successors and assigns, and shall inure to the benefit of Borrower, the
Guarantors, and Lender and the successors and assigns of Lender.

 

8.3           Waiver
of Claims.  Borrower hereby
acknowledges, agrees and affirms that it possesses no claims, defenses,
offsets, recoupment or counterclaims of any kind or nature against or with
respect to the enforcement of the Credit Agreement, as amended hereby, the
Revolving Note or any other Loan Document (collectively referred to herein as
the “Claims”), nor does Borrower now have
knowledge of any facts that would or might give rise to any Claims.  If facts now exist which would or could give
rise to any Claim against or with respect to the enforcement of the Credit
Agreement as amended hereby, the Revolving Note, and/or any other Loan
Documents, Borrower hereby unconditionally, irrevocably and unequivocally
waives and fully releases any and all such Claims as if such Claims were the
subject of a lawsuit, adjudicated to final judgment from which no appeal could
be taken and therein dismissed with prejudice.

 

8.4           Continuing
Force and Effect of Loan Documents and Guaranty.  Except as specifically modified or amended by
the terms of this Fifth Amendment, all other terms and provisions of the Credit
Agreement and the other Loan Documents are incorporated by reference herein,
and in all respects, shall continue in full force and effect.  Borrower, by execution of this Fifth
Amendment, hereby reaffirms, assumes and binds itself to all of the
obligations, duties, rights, covenants, terms and conditions that are contained
in the Credit Agreement and the other Loan Documents.  Each of the Guarantors, by execution of this
Fifth Amendment, hereby reaffirms, assumes and binds itself to all of the
obligations, duties, rights, covenants, terms and conditions that are contained
in Guaranty.

 

8.5           Financing
Statements.  Borrower hereby
irrevocably authorizes Lender at any time and from time to time to file in any
jurisdiction any initial UCC financing statements and/or amendments thereto
that (a) describe the Collateral, and (b) contain any other
information required by part 5 of Article 9 of the UCC for the sufficiency
or filing office acceptance of any financing statement or amendment.

 

8.6           References
to Credit Agreement.  Each reference
in the Credit Agreement to “this Agreement”, “hereunder”, “hereof’, or words of
like import, and each reference to the Credit Agreement in any and all
instruments or documents delivered in connection therewith, shall be deemed to
refer to the Credit Agreement, as amended hereby.

 

8.7           Expenses.  Borrower shall pay all costs and expenses in
connection with the preparation of this Fifth Amendment and other related loan
documents, including, without limitation, reasonable attorneys’ fees and time
charges of attorneys who may be employees of Lender or any affiliate or parent
of Lender.  Borrower shall pay any and
all stamp and other taxes, UCC search fees, filing fees and other costs and
expenses in connection with the execution and 

 

5

 

delivery of this Fifth Amendment and the other instruments and
documents to be delivered hereunder, and agrees to save Lender harmless from
and against any and all liabilities with respect to or resulting from any delay
in paying or omission to pay such costs and expenses.

 

8.8           Counterparts.  This Fifth Amendment may be executed in any
number of counterparts, all of which shall constitute one and the same
agreement.

 

[Signatures on following page]

 

6

 

IN
WITNESS WHEREOF, the parties hereto have executed this Fifth Amendment to the
Amended and Restated Credit Agreement and Reaffirmation of Guaranties as of the
date first above written.

 

	
   

  	
  Borrower:

  
	
   

  	
   

  
	
   

  	
  QUIXOTE CORPORATION,

  
	
   

  	
  a Delaware corporation, as
  Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DANIEL P. GOREY

  
	
   

  	
  Name:

  	
  Daniel P. Gorey

  
	
   

  	
  Title:

  	
  Executive Vice President,
  Chief Financial

  
	
   

  	
  Officer &
  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Guarantors:

  
	
   

  	
   

  
	
   

  	
  QUIXOTE TRANSPORTATION
  SAFETY, INC.

  TRANSAFE CORPORATION

  
	
   

  	
  ENERGY ABSORPTION SYSTEMS,
  INC.

  
	
   

  	
  ENERGY ABSORPTION SYSTEMS
  (AL) LLC

  SURFACE SYSTEMS, INC.

  
	
   

  	
  NU-METRICS, INC.

  
	
   

  	
  HIGHWAY INFORMATION
  SYSTEMS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ DANIEL P. GOREY

  
	
   

  	
  Name:

  	
  Daniel P. Gorey

  
	
   

  	
  Title:

  	
  Executive Vice
  President & Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lender:

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as
  successor by merger to LaSalle Bank National Association, a national banking
  association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ LORA BACKOFEN

  
	
   

  	
  Name:

  	
  Lora Backofen

  
	
   

  	
  Title:

  	
  Senior Vice President

  

 

7

 

Schedule I

 

Organizational Identification Numbers

 

	
  CORPORATION

  	
   

  	
  STATE

  	
   

  	
  STATE ID

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quixote Corporation

  	
   

  	
  Delaware

  	
   

  	
  0720523

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Quixote Transportation
  Safety, Inc.

  	
   

  	
  Delaware

  	
   

  	
  2803660

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Transafe Corporation

  	
   

  	
  Delaware

  	
   

  	
  3197646

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Energy Absorption
  Systems, Inc.

  	
   

  	
  Delaware

  	
   

  	
  0904033

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Energy Absorption (AL) LLC

  	
   

  	
  Delaware

  	
   

  	
  3539333

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Surface Systems, Inc.

  	
   

  	
  Missouri

  	
   

  	
  00157025

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nu-Metrics, Inc.

  	
   

  	
  Pennsylvania

  	
   

  	
  978728

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Highway Information
  Systems, Inc.

  	
   

  	
  Delaware

  	
   

  	
  2867376

  

 

8

 

SECOND AMENDED AND RESTATED REVOLVING LOAN NOTE

 

	
  $15,000,000

  	
   

  	
  Chicago, Illinois

  
	
   

  	
   

  	
  February 9, 2009

  

 

FOR
VALUE RECEIVED, the undersigned, QUIXOTE CORPORATION, a Delaware corporation
(the “Borrower”), promises to pay to the
order of LaSalle Bank National Association and its registered assigns (the “Lender”), on November 1, 2009, the principal sum of
Fifteen Million Dollars and No/100 Dollars ($15,000,000.00), or, if less, the
aggregate unpaid principal amount of all loans made by the Lender to the
Borrower from time to time pursuant to that certain Amended and Restated Credit
Agreement, dated as of April 20, 2005, between the Borrower and Lender as
amended by the First Amendment to Amended and Restated Credit Agreement and
Reaffirmation of Guaranties, dated as of December 1, 2006, that certain
Second Amendment to Amended and Restated Credit Agreement and Reaffirmation of
Guaranties, dated as of March 15, 2007, that certain Third Amendment to
Amended and Restated Credit Agreement and Reaffirmation of Guaranties dated as of
November 7, 2007, that certain Fourth Amendment to Amended and Restated
Credit Agreement and Reaffirmation of Guaranties dated as of November 7,
2008 and that certain Fifth Amendment to Amended and Restated credit Agreement
dated as of the date hereof (together with all amendments, if any, from time to
time made thereto, the “Credit Agreement”).

 

The
Borrower agrees to pay interest on the principal hereof remaining from time to
time unpaid in accordance with Section 2.13 of the Credit Agreement.

 

All
payments of principal and interest on this Note shall be payable in lawful
currency of the United States of America at the Lender’s office at 135 South
LaSalle Street, Chicago, Illinois 60603, in immediately available funds.

 

This
Note evidences indebtedness incurred under, and is subject to the terms and
provisions of, the Credit Agreement, to which reference is made for a statement
of those terms and provisions.  Should
the indebtedness represented by this Note or any part hereof be collected at
law or in equity or in bankruptcy, receivership, or other court proceedings, or
this Note be placed in the hands of attorneys for collection after maturity (by
declaration or otherwise), the undersigned agrees to pay, in addition to
principal and interest due and payable hereon, reasonable attorneys’ and
collection fees.

 

This
Note constitutes a renewal and restatement of, and replacement and substitution
for, that certain Amended and Restated Revolving Note, dated as of November 7,
2007 in the maximum principal amount of Forty Million and 00/100 Dollars
($40,000,000.00), executed by the Borrower and made payable to the order of the
Bank (the “Prior Note”).  The indebtedness evidenced by the Prior Note
is continuing indebtedness evidenced hereby, and nothing herein shall be deemed
to constitute a payment, settlement or novation of the Prior Note, or to
release or otherwise adversely affect any lien, mortgage or security interest
securing such indebtedness or any rights of the Bank against any guarantor,
surety or other party primarily or secondarily liable for such indebtedness.

 

[Signature on following page]

 

9

 

IN
WITNESS WHEREOF, the Borrower has executed this Note as of the date first above
written

 

	
   

  	
  QUIXOTE CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/DANIEL P. GOREY

  
	
   

  	
  Name

  	
    Daniel P. Gorey

  
	
   

  	
  Title:

  	
  Executive Vice President,
  Chief Financial Officer

  
	
   

  	
   

  	
    &
  Treasurer

  

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00152-of-00352.parquet"}]]