Document:

Amendment No.4 to Loan Agreement

 

EXHIBIT 10.1

AMENDMENT NO. 4

TO

LOAN AGREEMENT

     AMENDMENT NO. 4 dated and effective as of June 30, 2004, among NICHOLAS
FINANCIAL, INC. (“Borrower”), the financial institutions listed on the
signature pages hereof (the “Lenders”) and BANK OF AMERICA, N.A., as agent for
the Lenders (the “Agent”).

     WHEREAS, the Borrower, the Agent and the Lenders are parties to a certain
Amended and Restated Loan and Security Agreement, dated as of August 1, 2000
(the “Loan Agreement”), pursuant to which the Lenders have agreed, subject to
the terms and conditions therein set forth, to provide certain financial
accommodations to the Borrower; and

     WHEREAS, at the request of the Borrower, BoS (USA), Inc., a Bank of
Scotland Group Company, (“BOS”) has agreed to become a party to the Loan
Agreement and a Lender thereunder, with a Commitment of $10,000,000 and in
connection therewith to purchase an assignment of the interest of Bank of
America, N.A. in the amount of $5,000,000.00 pursuant to an Assignment and
Acceptance Agreement executed simultaneously herewith (the “Assignment”);

     WHEREAS, at the request of the Borrower BOS has agreed to become a party
to the Loan Agreement and a Lender thereunder, with a Commitment of
$10,000,000.00;

     WHEREAS, the Existing Lenders and the Agent are willing to accept the
addition of BOS as a party to and a Lender under the Loan Agreement with a
Commitment as aforesaid;

     WHEREAS, First Tennessee Bank National Association desires to increase its
Commitment from $15,000,000.00 to $20,000,000.00;

     WHEREAS, the Borrower desires that the Lenders amend certain provisions of
the Loan Agreement, and the Lenders are willing, subject to the terms and
conditions hereinafter set forth, to do so;

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     SECTION 1. CAPITALIZED TERMS. Capitalized terms used but not defined
herein shall have the respective meanings set forth in the Loan Agreement.

     SECTION 2.AMENDMENTS. The Loan Agreement is hereby amended as
follows:

 

 

     Section 1.1 of the Loan Agreement is hereby amended as follows:

          (a) (i) BOS as Lender. From and after the effective date of this
Amendment, BOS shall become a party to, and a Lender under, the Loan Agreement,
with a Commitment on such effective date equal to $10,000,000.00. Accordingly,
from and after the effective date of this Amendment, (i) all references in the
Loan Agreement and the other Loan Documents to “Lender” or “Lenders” shall
include BOS, all references therein to “Commitment” or “Commitments” shall
include the commitment of BOS specified herein, all references therein to
“Loan” or “Loans” shall include any loan made by BOS under the Loan Agreement
pursuant to its Commitment provided for herein and all references therein to
“Obligations” shall include all present and future liabilities, obligations and
debts owing by any Obligor to BOS under the Loan Agreement or any other Loan
Document, as amended hereby and from time to time hereafter; and (ii) the
Maximum Revolver Amount under the Loan Agreement shall be increased by
$10,000,000 from $75,000,000 to $85,000,000.

               (ii) Increase In First Tennessee Commitment. From and after the effective
date of this Amendment the Commitment of First Tennessee Bank National
Association is hereby increased from $15,000,000.00 to $20,000,000.00.

          (b) The definition of Advance Rate is hereby amended to read as follows:
“Advance Rate” means (1) seventy percent (70%) of Net Eligible Contract
Payments with respect to any Contract(s) with respect to which more than
$20,000 has been paid or advanced by the Borrower to any Dealer for such
Contract(s) exclusive of amounts attributable to items in the Contract for
items other than the Vehicle which is the subject thereof, or Contracts, the
terms of which exceed the allowable term based on the age of the Vehicle as set
forth in this Agreement; and (2) eighty-five percent (85%) with respect to all
other Net Eligible Contract Payments of all other Contracts provided, however,
that the Advance Rate shall be (a) sixty-nine percent (69%) and eighty-four
percent (84%), as applicable, when the Collateral Adjustment Percent ending on
the date of determination is equal to or greater than sixteen percent (16%),
but less than seventeen percent (17%), (b) sixty-eight percent (68%) and
eighty-three percent (83%), as applicable, when the Collateral Adjustment
Percent ending on the date of determination is equal to or greater than
seventeen percent (17%), but less than eighteen percent (18%); (c) sixty-seven
percent (67%) and eighty-two percent (82%), as applicable, when the Collateral
Adjustment Percent is equal to or greater than eighteen percent (18%), but less
than nineteen percent (19%); and provided, further that the applicable Advance
Rate shall be reduced by the Repossessed Adjustment Percent.

- 2 -

 

          (c) The definition of Applicable Margin is hereby amended to read as
follows:

               “Applicable Margin” means (i) with respect to Reference Rate Revolving
Loans, three-eighths of one percent (3/8%) and (ii) with respect to LIBOR Rate
Revolving Loans, two and one-eighth of one percent (2 1/8%).

          (d) The definition of Borrowing Base is hereby amended to read as follows:

               “Borrowing Base” means, at any time, an amount equal to (a) the lesser of
(i) the Maximum Revolver Amount or (ii) the amount determined by multiplying
the Advance Rate by the Net Contract Payments payable under all of the
Borrower’s Eligible Contracts then outstanding; less (b) the sum of (i) the
Bank Product Reserves and (ii) all other reserves which the Agent deems
necessary in the exercise of its reasonable credit judgment to maintain with
respect to the Borrower’s account, including reserves for any amounts which the
Agent or any Lender may be obligated to pay in the future for the account of
the Borrower; provided, however, (A) the Older Vehicle Contract Borrowing Base
included in calculating the Borrowing Base shall not, at any time, exceed
thirty percent (30%) of the Gross Contract Payments payable under all Eligible
Vehicle Contracts and the Oldest Vehicle Contract Borrowing Base included in
calculating the Borrowing Base shall not, at any time, exceed three percent
(3%) of the Gross Contract Payments payable under all Eligible Vehicle
Contracts; and provided, further, however that the Gross Contract Payments
payable under all Uninsured Contracts shall not constitute more than three
percent (3%) of the Gross Contract Payments payable under all Eligible Vehicle
Contracts and provided further however the Direct Loan Contract Borrowing Base
included in calculating the Borrowing Base shall not, at any time, exceed ten
percent (10%) of the Gross Contract payments payable under all Eligible
Contracts outstanding at any one time.”

               (e) Direct Loan Contract Borrowing Base means, as of any date of
calculation, the amount of Gross Contract payments payable under Eligible
Direct Loan Contracts.

               (f) Subsection (l)(vi) of the definition of Eligible Contracts is hereby
deleted.

               (g) Subsection (m) of the definition of Eligible Contracts is hereby
amended to read as follows:

         
           “(m) If the Contract is a Direct Loan Contract then:

                         (i) the original term of the Contract does not exceed forty-eight (48)
months;

- 3 -

 

                         (ii) any cash advance made in connection with the Contract does not exceed
Ten Thousand Dollars ($10,000.00), the unpaid principal balance of the Contract
and the aggregate principal balance of all other Contracts owing by a Contract
Debtor does not exceed Ten Thousand Dollars ($10,000);

                         (iii) if the Contract Debtor was or is a Contract Debtor under another
Contract previously originated or acquired by the Borrower, then the Contract
Debtor’s payment history under such prior or current Contract was satisfactory
(which, in the case of a prior Contract means that the Contract Debtor has paid
such Contract in full).

                         (iv) if the Contract Debtor is not a Contract Debtor under a Contract
previously originated or acquired by the Borrower, then the Contract Debtor’s
credit history is satisfactory to the Lender,

                         (v) repayment of the Contract is secured by a perfected security interest
on the Contract Debtor’s personal property or real property provided the real
property is taken as collateral out of an abundance of caution, and not as the
primary collateral for the Contract;

                         (vi) no portion of the loan evidenced by the Contract was made by the
Borrower to the Contract Debtor for the purpose of financing the Contract
Debtor’s payment of a down payment on a Vehicle which is the subject of a motor
vehicle retail installment contract or make any payment(s) necessary to cure
any payment default or deficiency or otherwise to bring the payments due under
or with respect to any Contract current;

                         (vii) no portion of the loan evidenced by the Contract was made by the
Borrower for the purpose of providing funds to the Contract Debtor to pay
amounts owing by the Contract Debtor on another Contract owing to the Borrower;

                         (viii) the aggregate number of Direct Loan Contracts does not exceed 10%
of the total number of Contracts outstanding at any one time.”

               (h) The definition of “Eligible Contracts” is further amended by the
addition of the following additional clauses:

       
             “(o) The purchase price of the Contract has been fully paid for by the
Borrower to the seller of the Contract and the Borrower is the owner and holder
of the Contract.

                    (p) The Vehicle (or other Goods) which secure the Contract do not
constitute part of the repossession inventory of Borrower or a returned Vehicle
or Goods.

- 4 -

 

               (i) The definition of “Maximum Revolver Amount” is hereby amended to read
as follows: “Maximum Revolver Amount” means $85,000,000.00.

               (j) The definition of “Older Vehicle Contract Borrowing Base” is hereby
amended in its entirety to read as follows:

                    “Older Vehicle Contract Borrowing Base” means, as of any date of
calculation, the amount of the Gross Contract Payments under Eligible Vehicle
Contracts which are secured by a lien on a Vehicle which is eight or nine model
years old at the time such Contract was originated (excluding the model year in
effect at the time the Contract was originated).

               (k) The definition of Stated Termination Date” is hereby amended to read
as follows:

      
              “ ‘Stated Termination Date’ means November 30, 2006.”

               (l) Section 2.2(i) of the Loan Agreement is hereby amended in its entirety
to read as follows:

         
           “ ‘(i) Agent Advances.’ (i) Subject to the limitations set forth in the
provisos contained in this Section 2.2(i)(i), the Agent is hereby authorized by
the Borrower and the Lenders, from time to time in the Agent’s sole discretion,
(A) after the occurrence of Default or an Event of Default, or (B) at any time
that any of the other applicable conditions precedent set forth in Article 10
have not been satisfied, to make Base Rate Revolving Loans to the Borrower on
behalf of the Lenders which the Agent, in its reasonable business judgment,
deems necessary or desirable, (1) to preserve or protect the Collateral, or any
portion thereof, (2) to enhance the likelihood of, or maximize the amount of,
repayment of the Loans and other Obligations, or (3) to pay any other amount
chargeable to the Borrower pursuant to the terms of this Agreement, including
costs, fees and expenses as described in Section 15.7 (any of the advances
described in this Section 2.2(i) being hereinafter referred to as ‘Agent
Advances’); provided, that any two (2) Lenders may at any time revoke the
Agent’s authorization contained in this Section 2.2(i) to make Agent Advances,
any such revocation to be in writing and to became effective prospectively upon
the Agent’s receipt thereof; provided further that (i) if the Pro Rata Share of
the Lenders revoking such authorization does not exceed 50%, such revocation
shall become effective 90-days after Agent’s receipt thereof or (ii) if the
Default or Event of Default would require consent of all Lenders to waive or
amend, such authorization may be revoked by any Lender effective 90-days after
Agent’s receipt thereof. Any Agent Advances made by Agent pursuant to this
Section 2.2(i) shall not exceed an aggregate principal amount at any one time
outstanding of $4,000,000.00 and further shall not exceed the applicable
Borrowing Base and Maximum Revolver
Amount”

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               (m) Section 3.1(a) of the Loan Agreement Interest Rates is hereby amended
to provide that interest of all Loans will be payable in arrears on the first
(1st) day of each month commencing on the first (1st) day of the first (1st)
month after the date of this Amendment No. 4 and continuing on the same day of
each month thereafter, and on the Termination Date. Borrower hereby authorizes
Agent, without further order or authorization of Borrower to charge all
interest payable hereunder directly against the Loans and any such change shall
constitute a Loan hereunder with interest to accrue thereon at the Interest
Rate described in Section 3.1(a)(ii).

               (n) Section 3.8 of the Loan Agreement Audit Fees is hereby amended in its
entirety to read as follows:

                    “3.8. Audit Fees. The Borrower shall pay the Agent all costs incurred by
the Agent in connection with verifications, examinations, audits, and
inspections of the Borrower and the Collateral. Such verifications,
examinations, audits and inspects shall be conducted by the Agent at least two
(2) times during each calendar year. Borrower hereby authorizes Agent, without
further order or authorization of Borrower to charge all audit fees payable
hereunder directly against the Loans and any such change shall constitute a
Loan hereunder with interest to accrue therewith at the Interest Rate described
in Section 3.1(a)(ii). Notwithstanding the foregoing, upon the occurrence of
any Event of Default, Borrower shall pay all of the Agent’s costs incurred in
connection with the verifications, audits and inspections of the Borrower and
the Collateral without regard to the foregoing limitations as to the number of
audits which may be conducted during any calendar year.

               (o) Section 4.2 of the Loan Agreement Termination of Facility is hereby
amended in its entirety to read as follows:

                    “4.2 Termination of Facility. The Borrower may terminate this Agreement
upon at least thirty (30) Business Days’ notice to the Agent and the Lenders,
upon (a) the payment in full of all outstanding Revolving Loans, together with
accrued interest thereon, (b)the payment of the early termination fee set
forth in the next sentence, (c) the payment in full in cash of all other
Obligations together with accrued and unpaid interest thereon, and (d) with
respect to any LIBOR Rate Loans prepaid in connection with such termination
prior to the expiration date of the Interest Period applicable thereto, the
payment of the amounts described in Section 5.4. If this Agreement is
terminated at any time prior to the Stated Termination Date, whether pursuant
to this Section or pursuant to Section 11.2, the Borrower shall pay to the
Agent, for the account of the Lenders, an early termination fee determined in
accordance with the following table:

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	Period during which	 	 
	early termination	 	Early Termination
	occurs
	 	Fee

	On or prior to November 30, 2004

	 	One percent (1%) of the
Maximum Revolver Amount.
	After November 30, 2004 but on or prior to
November 30, 2005

	 	One half of one percent
(1⁄2%) of the Maximum
Revolver Amount.
	After November 30, 2005 but prior to
November 30, 2006

	 	One quarter of one percent
(1⁄4%) of the Maximum
Revolver Amount.

               (p) Section 9.18 Minimum Interest Coverage of the Loan Agreement is hereby
amended in its entirety to read as follows:

                    “Minimum Interest Coverage. The Borrower shall not permit the ratio,
calculated as of the last day of each month on a cumulative Fiscal Year basis,
of (a) the sum of Adjusted Net Earnings from Operations for the applicable
period, plus interest expense and any provision for income taxes for such
period (numerator) to (b) aggregate interest expense for such period
(denominator), to be less than 1.75:1.

               (q) Section 9.21 Borrowing Base Ratio of the Loan Agreement is hereby
amended in its entirety to read as follows:

                    “Borrowing Base Ratio. The Borrower shall not permit the ratio of (a) the
remainder of (i) all liabilities, obligations, and indebtedness of the Borrower
minus (ii) all Subordinated Debt (numerator) to (b) Borrowing Base Amount
(denominator) to be, at any time, more than: 4.25:1 to 1.

               (r) Section 9.22 Collateral Adjustment Percent of the Loan Agreement is
hereby amended in its entirety to read as follows:

                    “9.22 Collateral Adjustment Percent. The Borrower shall not permit the
Collateral Adjustment as of the last day of any month to be greater than
nineteen (19%) percent.”

               (s) Section 9.27 Reporting Methodology of the Loan Agreement is hereby
amended in its entirety to read as follows:

                    “Reporting Methodology. The Borrower shall not amend or modify the
methodology employed by the Borrower in preparing its accounting and financial
reports relating to the presentation of (i) the delinquency of Vehicle
Contracts, (ii) the repossession of Vehicles, (iii) the charge-off of
delinquent Vehicle Contracts (iv) the unearned insurance commissions and

- 7 -

 

dealer discounts and (v) the calculation of loss or dealer reserves (including non-refundable
dealer reserves) from the methodology employed by the Borrower as of the date
of this Agreement, as amended by Amendment No. 4, so as to change the
consistency of the information with respect to such items, from time to time,
provided to Lender. In the event that Borrower elects at any time, to amend or
modify the methodology employed by Borrower in effect as of the date of the
Amendment No. 4 to the Loan Agreement, in preparing its financial reports
relating to the calculation of loss or dealer reserves (including
non-refundable dealer reserves), Agent reserves the right, upon written notice
to Borrower to change, or modify the definition of Eligible Accounts of the
Borrower and the financial covenants contained in this Agreement to the extent
Agent deems necessary to maintain and preserve the consistency of information,
eligibility standards and financial covenant limitations prescribed by and
contained in this Agreement and in effect as of the date of Amendment No. 4,
and as otherwise may be deemed necessary by Agent in the exercise of its
reasonable financial judgment, under the circumstances, resulting from any such
change. The provisions of the foregoing shall not apply to any change in
accounting mythology required in the reasonable financial opinion of Borrower’s
certified public accountants to comply with the AICPA Statement of Position
Concerning Accounting for Discounts Related to Credit Policy, effective April
1, 2004, as amended.”

          (t) Paragraphs (q) and (r) of Section 11.1 are hereby amended to read as
follows:

         
      “(q) Peter L. Vosotas at any time fails to own at least ten percent (10%)
of the voting stock of Nicholas Financial, Inc. (“Parent”) or that Parent at
any time fails to own all of the issued and outstanding stock of Borrower, or
that Peter L. Vosotas at any time fails to control the Borrower; or

               (r) the Borrower’s Collateral Adjustment Percent is at any time greater
than nineteen percent (19%).”

     SECTION 3. EFFECTIVENESS. The amendment made herein shall become
effective when (i) Lenders shall have duly executed and delivered this
Agreement and counterparts hereof shall have been duly executed and delivered
to the Agent by the Borrower; (ii) BOS has executed and delivered to Agent a
duly completed Assignment and Acceptance Agreement that has been accepted by
the Agent; and (iii) payment of the purchase price of the Assignment has been
made from BOS by wire transfer of same day available funds.

     SECTION 4. COUNTERPARTS AND GOVERNING LAW. This Agreement may be executed
in counterparts, each of which shall be an original, and all of which, taken
together, shall constitute a single instrument. This Agreement shall be
governed by, and construed in accordance with the law of the State of

- 8 -

 

New York.

     SECTION 5. REFERENCES TO LOAN AGREEMENT. From and after the
effectiveness of this Agreement and the waivers and agreements contemplated
hereby, all references in the Loan Agreement to “this Agreement”, “hereof”,
“herein”, and similar terms shall mean and refer to the Loan Agreement as
certain provisions thereof are amended or supplemented by this Agreement, and
all references in other documents to the Loan Agreement shall mean such
agreement as certain provisions thereof are amended or supplemented by this
Agreement.

     SECTION 6. INVALIDITY. Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under all applicable laws and regulations. If, however, any provision of this
Agreement shall be prohibited by or invalid under any such law or regulation,
it shall be deemed modified to conform to the minimum requirements of such law
or regulation, or if for any reason it is not deemed so modified, it shall be
ineffective and valid only to the extent of such prohibition or invalidity
without the remainder thereof or any of the remaining provisions of this
Agreement being prohibited or invalid.

     SECTION 7. RATIFICATION AND CONFIRMATION. The Loan Agreement is hereby
ratified and confirmed and, except as herein otherwise agreed, remains
unmodified and in full force and effect.

     SECTION 8. ADJUSTED PRO RATA PAYMENTS. Within ten (10) days from the date
of execution of this Amendment (“Closing Settlement Date”), Agent shall conduct
a Settlement with Lenders. At such Settlement, each Lender shall pay to the
Agent in immediately available funds, an amount equal to each Lender’s pro rata
share of the aggregate outstanding principal amount of the Loans. For purposes
of the calculation of the pro rata share of each Lender, the Commitment of each
Lender, shall be in the amount set forth in the signature section of this
Amendment.

     SECTION 9. ACKNOWLEDGEMENTS BY LENDERS.

          (a) The execution and delivery of this Agreement effectuates a
reallocation of the Maximum Revolving Amount and Commitments among Bank of
America, N.A., Hibernia National Bank and First Tennessee Bank National
Association (“Original Lenders”) and BoS (USA), Inc. (“New Lender”).

          (b) Any interest, fees and other payments accrued prior to the Closing
Settlement Date with respect to the Commitments and the outstanding Loans shall
be for the account of the Original Lenders. Any interest, fees, and other
payments accrued on and after the Closing Settlement Date shall be for the
account of all Lenders and including the New Lender. Each Original Lender

- 9 -

 

and
the New Lender agree that they will hold in trust for the other parties any
interest, fees, and other amounts which they receive to which another party is
entitled pursuant to the preceding sentence and will pay to such other party
any such amounts which they may receive promptly upon receipt.

          (c) The New Lender (i) acknowledges that it has received a copy of this
Agreement, and the Schedules and Exhibits thereto, together with copies of the
most recent financial statements of the Borrower, and such other documents and
information as it has deemed appropriate to make its own credit and legal
analysis and decision to enter into this Agreement; and (ii) agrees that it
will, independently and without reliance upon any Original Lender or the
Administrative Agent and based on such documents and information as it shall
deem appropriate at the time, continue to make its own credit and legal
decisions in taking or not taking action under this Agreement.

          (d) The New Lender (i) represents and warrants to the Original Lenders,
the Administrative Agent and the Borrower that under applicable law and
treaties no tax will be required to be withheld by the Original Lenders with
respect to any payments to be made to the New Lender hereunder, (ii) agrees to
furnish (if it is organized under the laws of any jurisdiction other than the
United States or any State thereof) to the Administrative Agent and the
Borrower prior to the time that the Administrative Agent or Borrower is
required to make any payment of principal, interest or fees hereunder,
duplicate executed originals of either U.S. Internal Revenue Service Form 4224
or U.S. Internal Revenue Service Form 1001 (wherein the New Lender claims
entitlement to the benefits of a tax treaty that provides for a complete
exemption from U.S. federal income withholding tax on all payments hereunder)
and agrees to provide new Forms 4224 or 1001 upon the expiration of any
previously delivered form or comparable statements in accordance with
applicable U.S. law and regulations and amendments thereto, duly executed and
completed by the New Lender, and (iii) agrees to comply with all applicable
U.S. laws and regulations with regard to such withholding tax exemption.

          (e) None of the Original Lenders makes any representation or warranty or
assumes any responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or any other instrument or document furnished pursuant thereto. None
of the Original Lenders makes any representation or warranty in connection
with, or assumes any responsibility with respect to, the solvency, financial
condition or statements of the Borrower, or the performance or observance by
the Borrower, of any of its respective obligations with this Agreement or any
other instrument or document furnished in connection therewith.

          (f) The New Lender represents and warrants that (i) it is duly

- 10 -

 

organized
and existing and it has full power and authority to take, and has taken, all
action necessary to execute and deliver this Agreement and any other documents
required or permitted to be executed or delivered by it in
connection with this Agreement, and to fulfill its obligations hereunder; (ii)
no notices to, or consents, authorizations or approvals of, any Person are
required (other than any already given or obtained) for its due execution,
delivery and performance of this Agreement; and apart from any agreements or
undertakings or filings required by this Agreement, no further action by, or
notice to, or filing with, any Person is required of it for such execution,
delivery or performance; (iii) this Agreement has been duly executed and
delivered by it and constitutes the legal, valid and binding obligation of the
New Lender, enforceable against the New Lender in accordance with the terms
hereof, subject, as to enforcement, to bankruptcy, insolvency, moratorium,
reorganization and other laws of general application relating to or affecting
creditors’ rights and to general equitable principles;

          (g) The Original Lenders and the New Lender each hereby agree to execute
and deliver such other instruments, and take such other action, as either party
may reasonably request in connection with the transactions contemplated by this
Agreement including the delivery of any notices or other documents or
instruments to the Borrower or the Administrative Agent, which may be required
in connection with the assignments and assumptions contemplated hereby.

- 11 -

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

	 	 	 	 	 
	 	 	Borrower:
	 
	 	 	 	 
	 	 	NICHOLAS FINANCIAL, INC.
	 
	 	 	 	 
	

	 	By:	 	 /s/ Peter L. Vosotas
	

	 	 	 	

	

	 	 	 	Peter L. Vosotas, President
	 
	 	 	 	 
	 	 	Agent:
	 
	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,
	 	 	     as Agent
	 
	 	 	 	 
	

	 	By:	 	 /s/ James C. Smith
	

	 	 	 	

	

	 	 	 	James C. Smith, Vice President
	 
	 	 	 	 
	 	 	Lenders:
	 
	 	 	 	 
	Commitment Amount:	 	          BANK OF AMERICA, N.A.
	$40,000,000.00 (47.06%)
	 	 	 	 
	 
	 	 	 	 
	

	 	By:	 	 /s/ James C. Smith
	

	 	 	 	

	

	 	 	 	James C. Smith, Vice President

- 12 -

 

	 	 	 	 	 
	Commitment Amount:	 	                    HIBERNIA NATIONAL BANK
	$15,000,000.00 (17.65%)
	 	 	 	 
	 
	 	 	 	 
	

	 	By:	 	 /s/ Anita G. Kennedy
	

	 	 	 	

	

	 	 	 	Anita G. Kennedy, Vice President

- 13 -

 

	 	 	 	 	 
	Commitment Amount:	 	          FIRST TENNESSEE BANK NATIONAL
	ASSOCIATION
	 	 	 	 
	$20,000,000.00 (23.53%)
	 	 	 	 
	 
	 	 	 	 
	

	 	By:	 	 /s/ David Perry
	

	 	 	 	

	

	 	 	 	David Perry, Senior Vice President

- 14 -

 

	 	 	 	 	 
	Commitment Amount:	 	          BoS (USA), INC.
	$10,000,000.00 (11.76%)
	 	 	 	 
	 
	 	 	 	 
	

	 	By:	 	 /s/ Karen Workman
	

	 	 	 	

	

	 	 	 	Karen Workman, Assistant Vice President

- 15 -<PAGE>
                                                                               .
                                                                               .
                                                                               .
                                                                    EXHIBIT 10.1

<TABLE>
<CAPTION>
                                   COMMERCIAL LOAN AND SECURITY AGREEMENT            00147900000000427
[LOGO] NAVISTAR FINANCIAL      (FOR NEW OR USED MOTOR VEHICLES AND EQUIPMENT)
       CORPORATION                                                                   Agreement Date: 5/24/2004

                                The undersigned Borrower hereby applies to Navistar Financial Corporation ("Lender") for a
                                loan of the Unpaid Balance shown below, on the following terms and conditions, in connection
                                with the purchase from seller of the equipment described below (the "Goods"). Borrower hereby
                                acknowledges delivery, inspection and acceptance of the Goods, represents that the Goods are
                                being purchased for a business or commercial purpose and authorizes disbursement of loan
                                proceeds to seller in payment for the Goods or other obligations of Borrower.

  SELLER INFORMATION:                                                BORROWER INFORMATION:
------------------------------------------------------------------------------------------------------------------------------------
<S>                                                                <C>                                        <C>
SELLER NUMBER: 001479-000                                          Boyd Brothers Transportation, Inc

International Truck and Engine Corporation                         3275 Hwy 30                                SSN#/TAX-ID

Duluth, GA                                                         Clayton AL 36016
   APPROVAL                                                          COUNTY:                                  CUSTOMER #
            01384510                                                        Barbour            (334)775-1215    04706016
====================================================================================================================================

  DESCRIPTION OF EQUIPMENT
====================================================================================================================================
VEHICLE    NEW
YEAR       USED       MANUFACTURER       MODEL      SERIAL NUMBER         EQUIPMENT TYPE             UNIT PRICE        UNIT NUMBER
====================================================================================================================================

                                                    SEE ADDENDUM - SCHEDULE A

====================================================================================================================================

  DESCRIPTION OF TRADE-IN
====================================================================================================================================
VEHICLE                                                                               GROSS         LESS AMOUNT          TRADE-IN
YEAR      MANUFACTURER       MODEL       SERIAL NUMBER           BODY TYPE          ALLOWANCE          OWING         (NET ALLOWANCE)
====================================================================================================================================

                                                    SEE ADDENDUM - SCHEDULE B

====================================================================================================================================
  INSURANCE COVERAGE                                                        SALE ANALYSIS
====================================================================================================================================
NO LIABILITY INSURANCE INCLUDED                                            1. CASH PRICE                               $1,879,403.25
==========================================================================----------------------------------------------------------
PHYSICAL DAMAGE:                                                           2. SALES AND OTHER TAXES                      $227,896.75
Physical Damage Insurance satisfactory to Lender is required. The         ----------------------------------------------------------
Borrower may choose the person through which the insurance is to be        3. CASH PRICE + TAX (1 + 2)                 $2,107,300.00
obtained or provide such insurance through an existing policy subject     ----------------------------------------------------------
to Lender's right to refuse to accept any such insurer for any reasonable  4. a. CASH DOWN PAYMENT                             $0.00
cause. If Physical Damage Insurance is included in this Agreement, the    ----------------------------------------------------------
cost of insurance shall be as set forth in item 6a and the following          b. TRADE-IN (NET ALLOWANCE)                $530,600.00
coverage is provided for a term of     months from the date of delivery.  ----------------------------------------------------------
                                                                              TOTAL DOWN PAYMENT (a + b)                 $530,600.00
                     Deductible Other Than Collision (Specified Perils,   ----------------------------------------------------------
                     Comprehensive or Fire, Theft and Combined Additional  5. UNPAID BALANCE OF CASH PRICE (3 LESS 4)  $1,576,700.00
                     Coverage, as per attached insurance application.)    ----------------------------------------------------------
                                                                           6.  a. PHYSICAL DAMAGE                              $0.00
                     Deductible Collision                                 ----------------------------------------------------------
                                                                               b. CREDIT LIFE INSURANCE                        $0.00
------------------------------------------------------------------------------------------------------------------------------------
Name of Physical Damage Insurance Company              Agent Name/Phone        c. TITLE AND OFFICIAL FEES                      $0.00
                                                                          ----------------------------------------------------------
Texas Residents Only: If physical damage insurance is obtained through         d. DOCUMENTATION FEE                          $350.00
the Lender and placed with a county mutual insurance company, the premium ----------------------------------------------------------
or rate of charge is not fixed or approved by the Texas State Board of         e. OPTIONAL SERVICE/EXTENDED WARRANTY           $0.00
Insurance.                                                                ----------------------------------------------------------
CREDIT LIFE INSURANCE IS NOT REQUIRED.                                         f. OTHER                                        $0.00
If a charge is included in 6b it is understood that credit life insurance ----------------------------------------------------------
is requested in this Agreement and the Borrower signing below is the       TOTAL CHARGES (Total of 6a to 6f)                 $350.00
insured. Borrower hereby acknowledges receipt of a certificate containing ----------------------------------------------------------
the terms of such insurance through Agent:                                 7. TOTAL CHARGES INCURRED (5 + 6)           $1,577,050.00

------------------------------------------------------------------------
Name of Credit Life Insurance Company                  Agent Name/Phone
====================================================================================================================================

PROMISSORY NOTE: If this Agreement is accepted by Lender, Borrower promises to pay to Lender or to its order the TOTAL CHARGES
INCURRED set forth in Line 7 above, together with interest from the date of this Agreement, in installments as set forth below:

Borrower agrees to pay Lender the TOTAL CHARGES INCURRED plus interest in the amount of $216,042.80 computed at a rate equivalent to
5.00% per annum in installments as set forth below payable on the same day of each successive month:

====================================================================================================================================
  # of        Amount of                          # of        Amount of                          # of       Amount of
Payments      Payment       Beginning          Payments       Payment       Beginning          Payments     Payment     Beginning
====================================================================================================================================
 60           $29,884.88     7/24/2004

====================================================================================================================================

FOR USE IN SOUTH CAROLINA ONLY: WAIVER OF HEARING PRIOR TO IMMEDIATE POSSESSION: BORROWER HEREBY EXPRESSLY AGREES THAT, SHOULD THE
LENDER BE ENTITLED TO POSSESSION OF THE GOODS DESCRIBED ABOVE OR ITS PROCEEDS UNDER THE TERMS OF THIS AGREEMENT OR ANY DOCUMENT
EXECUTED IN CONNECTION HEREWITH (INCLUDING ANY FURTHER EXTENSIONS, RENEWALS, ETC.) BORROWER WAIVES ITS RIGHT TO NOTICE AND AN
OPPORTUNITY TO BE HEARD PRIOR TO REPOSSESSION OF THE GOODS BY THE LENDER.

NOTICE TO BORROWER: 1. DO NOT SIGN THIS AGREEMENT BEFORE YOU READ IT OR IF IT CONTAINS BLANK SPACES. 2. YOU ARE ENTITLED TO A
COMPLETELY FILLED-IN COPY OF THE AGREEMENT WHEN YOU SIGN IT. 3. UNDER THE LAW, YOU HAVE THE FOLLOWING RIGHTS, AMONG OTHERS: (a) TO
PAY OFF IN ADVANCE THE FULL AMOUNT DUE AND TO OBTAIN A PARTIAL REFUND OF THE INTEREST CHARGES BASED ON THE ACTUARIAL METHOD UNLESS
ANOTHER METHOD IS REQUIRED BY LAW; (b) TO REDEEM THE GOODS IF REPOSSESSED FOR DEFAULT; (c) TO REQUIRE, UNDER CERTAIN CONDITIONS, A
RESALE OF THE GOODS IF REPOSSESSED. 4. IF YOU DESIRE TO PAY OFF IN ADVANCE THE FULL AMOUNT DUE, THE AMOUNT OF REFUND YOU ARE
ENTITLED TO, IF ANY, WILL BE FURNISHED UPON REQUEST. 5. IN TEXAS, THIS AGREEMENT MAY BE SUBJECT IN WHOLE OR IN PART TO TEXAS LAW
WHICH IS ENFORCED BY THE CONSUMER CREDIT COMMISSIONER, 2601 NORTH LAMAR, AUSTIN, TEXAS 78705-4207. TELEPHONE (512) 479-1285,
(214) 263-2016, (713) 461-4074.

------------------------------------------------------------------------------------------------------------------------------------
Page  1 of 3    COMMERCIAL LOAN AND SECURITY AGREEMENT FOR : Boyd Brothers Transportation, Inc
</TABLE>
<PAGE>
                             ADDITIONAL PROVISIONS
                                                              00147900000000427

LATE PAYMENTS: In addition to promising to pay the "Total Payments" as set forth
above, Borrower promises to pay past due interest accrued from maturity on each
installment in default more than 10 days at the highest rate permitted by law.
Borrower also agrees to pay all expenses actually incurred, including attorney
fees, in collecting any amount payable under this Agreement, all to the extent
allowed by law.

PARTIES: As used herein, "Borrower" shall include all persons or entities who
sign as "Borrower(s)." "Lender" shall mean Navistar Financial Corporation, its
successors and assigns. "Affiliates" shall include all entities directly or
indirectly controlling or controlled by, or under common control with Lender
including but not limited to, Harco Leasing Company, Inc. and Navistar Leasing
Company. Upon notice of assignment, Borrower agrees to make payments hereunder
directly to assignee. Assignee shall be entitled to all rights of Lender free
from any defense, set-off or counterclaim by the Borrower against the Lender,
except as required by law. Seller shall not be the agent of Lender for
transmission of payments or otherwise.

NO WARRANTIES BY LENDER: Borrower agrees that Lender is neither the seller nor
the manufacturer of the Goods, and has not made and does not make any
representation, warranty or covenant with respect to the Goods, either express
or implied, written or oral, including but not limited to any representation,
warranty or covenant with respect to condition, quality, safety, durability,
merchantability, or fitness for a particular purpose. Borrower selected the
Goods and hereby agrees that any and all claims that Borrower has or may in the
future have against the seller and/or manufacturer shall not be asserted as an
offset against Lender, including but not limited to any claims in product
liability.

USE OF PROPERTY: Borrower shall hold and use the Goods at its risk and expense
with respect to loss or damages, and taxes and charges of every kind; shall take
proper care of the Goods and shall not abuse or misuse the same; shall not sell,
assign or transfer its interest in the Goods or remove the Goods from the
jurisdiction in which they now reside without the prior written consent of
Lender; shall not use the Goods for any illegal purpose and shall not attach any
of the Goods to any real estate or to any other property in such a manner as to
become a part thereof. If Borrower fails to pay said taxes and said charges,
Lender may, at its election, either do so and charge same to Borrower or treat
such failure as a breach of condition of this agreement. Any amount so paid by
the Lender shall become a part of the indebtedness secured hereunder.

PHYSICAL DAMAGE INSURANCE: If a cost for physical damage insurance is included
in the Agreement, Borrower hereby assigns to Lender the right to cancel such
insurance. If any insurance included in this Agreement is cancelled, whether by
request of the Borrower or the Lender, or action of the Insurance Company,
Lender is hereby authorized on behalf of Borrower to receive any unearned
premium refund. If no cost of physical damage insurance is included in this
Agreement, Borrower agrees to promptly insure the Goods at its own expense with
a company acceptable to the Lender against loss by fire, theft and collision for
the period of the term of this Agreement and in such amounts and upon such terms
as are acceptable to Lender. Borrower specifically covenants to name Lender as
loss payee as its interest may appear. Lender may, in its sole discretion, apply
any proceeds of insurance received by it to any indebtedness owed by Borrower to
Lender or its Affiliates.

PLACEMENT OF PHYSICAL DAMAGE INSURANCE: Unless Borrower provides Lender with
evidence of the insurance coverage required by this Agreement, Lender may, but
will not be obligated to, purchase insurance at Borrower's expense to protect
Lender's interest in the Goods. This insurance may, but need not, protect
Borrower's interests. The coverage that Lender purchases may not pay any claim
that Borrower makes or any claim that is made against Borrower in connection
with the Goods. Borrower may later cancel any insurance purchased by Lender, but
only after providing Lender with evidence that Borrower has obtained other
insurance as required by the Agreement. If Lender purchases insurance for the
Goods, Borrower will be responsible for the costs of such insurance including
interest and any other charge Lender may impose in connection with the placement
of the insurance, until the effective date of the cancellation or expiration of
the insurance. The cost of the insurance may be added to Borrower's outstanding
balance due and owing Lender under the Agreement. The cost of the insurance may
be more than the cost of insurance Borrower may be able to obtain on its own.

SECURITY INTEREST: In order to secure performance and payment of the loans made
by Lender to Borrower and all of Borrower's obligations and indebtedness
hereunder and of all other amounts due or to become due hereunder and to secure
each and every other obligation or indebtedness of every kind and description
and howsoever arising, now or hereafter owing by Borrower to Lender or its
Affiliates, Lender hereby retains, and Borrower hereby grants, a purchase money
security interest under the Uniform Commercial Code in and to the Goods
described above, together with all replacements, repairs and accessions thereto
and cash and the non-cash proceeds (including insurance proceeds) thereof. The
security interest hereby granted is a separate, independent security interest
that is in addition to, and not in substitution for, any and all security
interests heretofore or hereafter granted by Borrower to Lender. This Agreement
is not an amendment to or modification of, or a waiver or release by Lender of,
any term, provision or condition of any other agreement between Borrower and
Lender. Further, Lender hereby retains and Borrower hereby grants a security
interest in the proceeds of any physical damage, credit life and or disability
insurance for which a charge is stated above or which is supplied by Borrower,
and if a charge for any such insurance has been included in this Agreement, a
security interest in the refund of any unearned premiums in the event such
insurance is terminated or canceled for any reason. Borrower will not grant any
other security interest in and to the Goods described above, without the prior
written consent of Lender. Borrower shall cause, or cooperate with Lender in
causing, Lender's security interest in the Goods to become properly perfected
under state law through filing of a financing statement or notation on
appropriate perfection documents.

DEFAULT: For use in all states except Louisiana. Time is of the essence hereof
and if Borrower defaults in any one of the payments on the loan or other payment
provided for herein when due or breaches any other covenant or condition of this
Agreement, or any other contract or agreement between Borrower and Lender or its
Affiliates or if the Goods are levied upon, or Borrower becomes bankrupt or
insolvent or a petition in bankruptcy is filed by or against the Borrower, then
Lender may, in its sole option and discretion in any such event declare the
total amount unpaid hereunder, including accrued delinquency charges, and
excluding unearned interest, immediately due and payable and may take possession
of the Goods in a lawful manner wherever found without notice, demand or legal
process, or may require the Borrower to assemble the Goods and make them
available to the Lender at a place to be designated by the Lender, and where not
prohibited by law, may sell the same at public or private sale, with or without
notice, at which sale Lender may become the purchaser, may deduct from the
proceeds of any such sale all taxes and charges due on the Goods and all
expenses of taking, removing, holding, repairing and selling the Goods, and may
apply the net proceeds to any indebtedness of Borrower, returning to Borrower
any surplus or holding Borrower liable for any deficiency; and in consideration
of the use of the Goods and for diminution in saleable value thereof, Lender may
retain all payments made; or Lender may pursue any other remedy provided by law.
Lender may accept partial payments of any sum due without waiving or otherwise
modifying the terms of this Agreement and the waiver by Lender of a breach of
any condition of this Agreement shall not constitute a waiver of any subsequent
breach whether or not of a like character. In the event of bankruptcy or other
insolvency proceedings, in addition to the above remedies, the Lender shall be
entitled to any rental or other income produced by the Goods prior to their
release to Lender.

--------------------------------------------------------------------------------
Page 2 of 3 COMMERCIAL LOAN AND SECURITY AGREEMENT FOR: Boyd Brothers
Transportation, Inc

<PAGE>
                                                              00147900000000427

                    ADDITIONAL PROVISIONS - (Continued)
--------------------------------------------------------------------------------
DEFAULT: For Use In Louisiana Only. Borrower does hereby confess judgment in
favor of the Lender or any subsequent holder of this agreement for principal,
interest, attorney's fees, and costs; and does hereby declare that if anyone of
the payments on the loan or other payment provided for herein is not fully paid
when due, if default be made in compliance with any condition or covenant
herein, or proceedings in bankruptcy, insolvency or receivership be instituted
by or against the Borrower, or if any action is taken looking toward the
appointment of a receiver, syndic or curata of Borrower or if the property be
used in violation of any state or Federal law, such violation shall constitute a
breach of this Agreement which shall ipso facto be immediately due and eligible
in its entirety and the Lender may cause all and singular the Goods herein
described to be seized and sold under executory or other legal process in any
court, without appraisement, to the highest bidder, payable in cash. Borrower
hereby specifically waives the three (3) day notice of demand provided by
Article 2639 of the Louisiana Code of Civil Procedure and Notice of Appraisement
set forth under Article 2723 of the Louisiana Code of Civil Procedure end all
pleas of division and discussion and the benefit of appraisement or the said
Lender may and is hereby authorized to take immediate possession of the Goods
wherever found without process of law and hold same until the amount due and
either at public or private sale without demand for performance of without
notice to the Borrower, with or without having the Goods at the place of sale.
The Lender, or future holder of this Agreement, shall have the right to bid at
any public sale. From the proceeds of such sale, the Lender, or future holder of
this Agreement, shall deduct all expenses for retaking, repairing and selling
the Goods, including a reasonable attorney's fee. Pursuant to the authority of
Louisiana Revised Statutes 9:5136 et Seq., Borrower hereby appoints Lender, or
its designee, to be keeper or receiver of the collateral herein described who,
at its option, may take possession thereof and administer same immediately upon
any seizure incident to any legal action brought by Lender.
--------------------------------------------------------------------------------

CO-BORROWER: The obligation of any co-borrower hereunder shall be primary and
the co-borrower shall be jointly and severally liable with the Borrower for
payment in full of all amounts due or to become due pursuant to the terms and
conditions of this Agreement.

GENERAL: Borrower hereby covenants that all facts and information contained
herein and in the credit application are true and correct as of the date hereof
and specifically warrants that there are no other amounts owing on the trade-in
equipment except as may be indicated herein. Renewal, extension, or assignment
of this Agreement shall not release Borrower or Co-Borrower from any obligations
hereunder.

POWER OF ATTORNEY: Borrower hereby irrevocably authorizes and empowers Lender to
execute, sign, and file on Borrower(s) behalf any financing statement,
continuation statement or any other document related to the perfection or
protection of the security interest hereby created, if allowed by law. This
Power of Attorney being coupled with an interest is irrevocable, and a photocopy
or other facsimile thereof shall constitute proof of Agent's continuing
authorization to act on behalf of Principal in all matters referred to above.

APPLICATION OF PAYMENTS: Each payment received on the loan shall be applied
first to accrued interest and delinquency charges and then to the balance of any
amount financed then outstanding.

SAVINGS CLAUSE: Should any provision of this Agreement be or become invalid,
illegal, prohibited or uneforceable by law or otherwise, then such provision
shall be void; however, such impairment shall not in any way invalidate or
impair the remainder of this Agreement or any other of its provisions, If the
rate of interest or other charges set forth hereunder shall exceed the
applicable maximum, then such rate shall be reduced to such maximum and any
excess interest or charge that may have been collected shall, at the option of
the Borrower, either be refunded in cash or applied as a credit to unpaid
principal. In no event shaft Borrower be obligated to pay such excess charges.

ACCEPTANCE BY LENDER, CHOICE OF LAW: This Agreement is not binding until
accepted by Lender in Illinois. Except as prohibited by law, the law of
Illinois, where this Agreement is entered into, and applicable federal law shall
control the construction and validity of this Agreement, This Agreement is
entered into in Illinois and all loans made by the Lender will be extended from
Illinois. The validity and enforcement of the security interest granted
hereunder shall be controlled by the law of jurisdiction where the Goods are to
be kept and used.

QUARTERLY PRIME RATE: As used in this Agreement the "Quarterly Prime Rate" shall
mean for each calendar quarter, the Prime Rate as published in the Wall Street
Journal on the last business day of the month immediately preceding the first
day of each calendar quarter.

QUARTERLY LIBOR RATE: Shall mean, for each calendar quarter, the 90-day London
Interbank Offered Rate as published in the Wall Street Journal on the last
business day of the month immediately preceding the first day of each calendar
quarter.

WAIVER OF JURY TRIAL: BORROWER WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION
RELATING TO THIS AGREEMENT.

--------------------------------------------------------------------------------

This Space Intentionally Left Blank

--------------------------------------------------------------------------------

All payments shall be paid to Lender at P.O. Box 96070, Chicago, IL 60693-6070
or as otherwise directed by Lender o Borrower in writing. Telephone inquiries
should be directed to Navistar Financial Corporation (847) 734-4000, All other
correspondence should be sent to Lender at P.O. Box 4024, Attn: FSC, Schaumburg,
IL 60168-4024

================================================================================
Borrower has read and agrees to all terms, provisions and conditions contained
in this three page Agreement, agrees that this Agreement contains the entire
agreement between Borrower and Lender relating to this loan for the purchase of
the Goods, and supersedes all previous agreements, except as to agreements
between Borrower and Lender,

<TABLE>
<S>                                                                             <C>
====================================================================================================================================
This Agreement is subject to the terms of the Retail Financing                     BORROWER ACKNOWLEDGES RECEIPT OF AN EXACT COPY
Arrangement between the Lender and Seller. Initial for:                         ====================================================

Non-Recourse ___________________    Guaranty _______________                     NAME OF BORROWER:
                                                                                  Boyd Brothers Transportation, Inc.
AUTHORIZED SIGNATURE FOR SELLER                                                  (Name of Individual(s), corporation or partnership.
                                                                                 Give trade style, if any after name.)
BY ___________________________________________________________________________
      Signature of Owner, Officer, or Authorized Rep.)     (Title)                 BY                        TITLE
================================================================================     -----------------------------------------------
LENDERS
ACCEPTANCE                                                                            (If corporation, authorized party must sign
================================================================================      and show corporate title, if partnership, a
Lender: Navistar Financial Corporation   Accepted by Lender at:                       general partner must sign, if owner(s) or
        2850 West Golf Road, Roiling Meadows, IL, 60008                               partner show which.)

BY                                              DATE                               BY                        TITLE
   -----------------------------------------------------------------------------     -----------------------------------------------
     Authorized Representative                                                        (Co-Borrower/Co-Signer/Guarantor)

Page 3 of 3   COMMERCIAL LOAN AND SECURITY AGREEMENT FOR: Boyd Brothers Transportation, Inc

</TABLE>

<PAGE>

                     COMMERCIAL LOAN AND SECURITY AGREEMENT
                                   SCHEDULE A                  00147900000000427

[LOGO] Navistar Financial                             Agreement Date: 5/24/2004
       Corporation

<TABLE>
<CAPTION>
SELLER INFORMATION                                               BORROWER INFORMATION:
----------------------------------------------------------------------------------------------------------------------
SELLER NUMBER: 001479-000                                        Boyd Brothers Transportation, Inc      (334) 775-1215
International Truck and Engine Corporation                       3275 Hwy 30                             SSN#/TAX-ID
Duluth GA                                                        Clayton AL 38016
APPROVAL 01384519                                                COUNTY: Barbour                         CUSTOMER #
                                                                                                         04706016
-----------------------------------------------------------------------------------------------------------------------

DESCRIPTION OF EQUIPMENT
-----------------------------------------------------------------------------------------------------------------------
<S>        <C>     <C>              <C>          <C>                    <C>                   <C>           <C>
VEHICLE    NEW
YEAR       USED    MANUFACTURER     MODEL        SERIAL NUMBER          EQUIPMENT TYPE        UNIT PRICE    UNIT NUMBER
-----------------------------------------------------------------------------------------------------------------------

2005       New     International    94001        2HSCNSBR75C024339      Sleeper Tractor       $75,560.13
2005       New     International    94001        2HSCNSBR35C024340      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR55C024341      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR75C024342      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR95C024343      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR05C024344      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR25C024345      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR45C024346      Sleeper Tractor       $75,160.13
2005       New     International    9400l        2HSCNSBR65C024347      Steeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR85C024348      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBRX5C024349      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR65C024350      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR85C024351      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBRX5C024352      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR25C024328      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR45C024329      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBRO5C024330      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR25C024331      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR45C024332      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR65C024333      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR85C024334      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBRX5C024335      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR15C024336      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR35C024337      Sleeper Tractor       $75,160.13
2005       New     International    94001        2HSCNSBR55C024338      Sleeper Tractor       $75,160.13

                          Total Collateral count = 25
--------------------------------------------------      -------------------------------------------------
SELLER: International Truck and Engine Corporation      BORROWER Boyd Brothers Transportation, Inc

BY                                                      By   illegible              Title   President
   -----------------------------------------------         -----------------------        ---------------

       LENDER'S ACCEPTANCE                                     Accepted by Lender at:
       Lender: Navistar Financial Corporation                  2850 West Golf Road,
                                                               Rolling Meadows, IL 60008
       BY _________________________  DATE _______
          Authorized Representative
----------------------------------------------------------------------------------------------------------
COMMERCIAL LOAN AND SECURITY AGREEMENT FOR: Boyd Brothers Transportation, Inc      SCHEDULE A  Page 1 of 1
</TABLE>

<PAGE>
                     COMMERCIAL LOAN AND SECURITY AGREEMENT
                                   SCHEDULE B                  00147900000000427

[LOGO] Navistar Financial                             Agreement Date: 5/24/2004
       Corporation

<TABLE>
<CAPTION>
SELLER INFORMATION                                               BORROWER INFORMATION:
----------------------------------------------------------------------------------------------------------------------
SELLER NUMBER: 001479-000                                        Boyd Brothers Transportation, Inc      (334) 775-1215
International Truck and Engine Corporation                       3275 Hwy 30                             SSN#/TAX-ID
Duluth, GA                                                       Clayton AL 38016
APPROVAL 01384510                                                COUNTY: Barbour                         CUSTOMER #
                                                                                                         04706016
-----------------------------------------------------------------------------------------------------------------------

DESCRIPTION OF TRADE-IN
-----------------------------------------------------------------------------------------------------------------------
<S>      <C>             <C>      <C>                <C>                 <C>             <C>            <C>
VEHICLE                                                                      GROSS        LESS AMOUNT        TRADE-IN
YEAR      MANUFACTURER     MODEL    SERIAL NUMBER       BODY TYPE          ALLOWANCE         OWING       (NET ALLOWANCE)
-----------------------------------------------------------------------------------------------------------------------

1999      International    9900     2HSFTASR0XC038650                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR2XC038651                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR6XC038653                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR8XC038654                      $18,574.00        $0.00           $18,574.00
1999      International    9900     2HSFTASRXXC038655                      $20,574.00        $0.00           $20,574.00
1999      International    9900     2HSFTASR1XC038656                      $18,574.00        $0.00           $18,574.00
1999      International    9900     2HSFTASR3XC038657                      $20,574 90        $0.00           $20,574 90
1999      International    9900     2HSFTASR9XC036623                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR0XC036624                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR0XC032833                      $20,574.00        $0.00           $20,574.00
1999      International    9900     2HSFTASR4XC032835                      $22,574.00        $0.00           $22,574.00
1999      International    9900     2HSFTASR8XC032837                      $20,574.00        $0.00           $20,574.00
1999      International    9900     2HSFTASRXXC032838                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR1XC032839                      $20,574.00        $0.00           $20,574.00
1999      International    9900     2HSFTASRXXC032872                      $20,574.00        $0.00           $20,574.00
1999      International    9900     2HSFTASR3XC032874                      $22,574.00        $0.00           $22,574.00
1999      International    9900     2HSFTASR5XC032875                      $21,824.00        $0.00           $21,824.00
l999      International    9900     2HSFTASR9XC032877                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR0XC032878                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR2XC032879                      $20,574.00        $0.00           $20,574.00
1999      International    9900     2HSFTASR3XC038643                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR5XC038644                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR7XC038645                      $20,574.00        $0.00           $20,574.00
1999      International    9900     2HSFTASR9XC038646                      $21,824.00        $0.00           $21,824.00
1999      International    9900     2HSFTASR2XC038648                      $21,824.00        $0.00           $21,824.00

                                         Total trade-in count = 25
---------------------------------------------------------             -------------------------------------------------
SELLER: International Truck and Engine Corporation                    BORROWER: Boyd Brothers Transportation, Inc

BY                                                                    By   illegible              Title   illegible
   ------------------------------------------------------                -----------------------        ---------------

       LENDER'S ACCEPTANCE                                               Accepted by Lender at:
       Lender: Navistar Financial Corporation                            2850 West Golf Road,
                                                                         Rolling Meadows, IL 60008
       BY _________________________  DATE _______
          Authorized Representative
----------------------------------------------------------------------------------------------------------
COMMERCIAL LOAN AND SECURITY AGREEMENT FOR: Boyd Brothers Transportation, Inc      SCHEDULE B  Page 1 of 1
</TABLE>
<PAGE>

                             AMORTIZATION SCHEDULE
<Table>
<Caption>
                                                                                        00147900000000427

[LOGO INTERNATIONAL]     Navistar Financial Corporation                                Fax   847 734 4020
                         P.O Box 4024, Schaumburg, IL 60168-4024                       Phone 847 734 4000

     Customer Name: Boyd Brothers Transportation, Inc
------------------------------------------------------------------------------------------------------------
 Amount to Finance: $1,577,050.00                 Date of Note: 5/24/2004            Payment Plan: Other
     Total Finance:   $216,042.80          Date Finance Begins: 5/24/2004           Rebate Method: Actuarial
    Total Payments: $1,793,092.80                          APR: 5.00                         Term: 61
------------------------------------------------------------------------------------------------------------
                           Principal         Period          Payment           Finance           Principal
Period        Date           Payment        Finance           Amount         Remaining           Remaining
------------------------------------------------------------------------------------------------------------

<S>      <C>              <C>              <C>          <C>                 <C>               <C>
             Total             $0.00           $0.00    $1,793,092.80       $216,042.80       $1,577,050.00

1         06/24/04             $0.00       $6,571.03            $0.00       $209,471.77       $1,583,621.03
2         07/24/04        $23,286.47       $6,598.41       $29,884.88       $203,873.36       $1,560,334.56
3         08/24/04        $23,383.47       $6,501.41       $29,884.88       $196,371.95       $1,536,951.09
4         09/24/04        $23,480.93       $6,403.95       $29,884.88       $189,968.00       $1,513,470.16
5         10/24/04        $23,578.75       $6,306.13       $29,884.88       $183,661.87       $1,489,891.09
6         11/24/04        $23,677.01       $6,207.87       $29,884.88       $177,454.00       $1,466,214.40
7         12/24/04        $23,775.65       $6,109.23       $29,884.88       $171,344.77       $1,442,438.75
8         01/24/05        $23,874.71       $6,010.17       $29,884.88       $165,334.60       $1,418,564.04
9         02/24/05        $23,974.20       $5,910.68       $29,884.88       $159,423.92       $1,394,589.84
10        03/24/05        $24,074.09       $5,810.79       $29,884.88       $153,613.13       $1,370,515.75
11        04/24/05        $24,174.39       $5,710.49       $29.884.88       $147,902.64       $1,346,341.36
12        05/24/05        $24,275.13       $5,609.75       $29,884.88       $142,292.89       $1,322,066.23
13        06/24/05        $24,376.27       $5,508.61       $29,884.88       $136,784.28       $1,297,689.96
14        07/24/05        $24,477.84       $5,407.04       $29,884.88       $131,377.24       $1,273,212.12
15        08/24/05        $24,579.83       $5,305.05       $29,884.88       $126,072.19       $1,248,632.29
16        09/24/05        $24,682.25       $5,202.63       $29,584.88       $120,869.56       $1,223,950.04
17        10/24/05        $24,785.08       $5,099.80       $29,884.88       $115,769.76       $1,199,164.96
18        11/24/05        $24,888.36       $4,996.52       $29,884.88       $110,773.24       $1,174,276.60
19        12/24/05        $24,992.06       $4,892.82       $29,884.88       $105,880.42       $1,149,284.54
20        01/24/06        $25,096.20       $4,788.68       $29,884.88       $101,091.74       $1,124,188.34
21        02/24/06        $25,200.76       $4,684.12       $29,884.88        $96,407.62       $1,098,987.58
22        03/24/06        $25,305.76       $4,579.12       $29,884.88        $91,828.50       $1,073,681.82
23        04/24/06        $25,411.20       $4,473.68       $29,884.88        $87,354.82       $1,048,270.62
24        05/24/06        $25,517.10       $4,367.78       $29,884.88        $82,987.04       $1,022,753.52
25        06/24/06        $25,623.40       $4,261.48       $29,884.88        $78,725.56         $997,130.12
26        07/24/06        $25,730.17       $4,154.71       $29,884.88        $74,570.85         $971,399.95
27        08/24/06        $25,837.38       $4,047.50       $29,884.88        $70,523.35         $945,562.57
28        09/24/06        $25,945.03       $3,939.85       $29,884.88        $66,583.50         $919,617.54
29        10/24/06        $26,053.15       $3,831.73       $29,884.88        $62,751.77         $893,564.39
30        11/24/06        $26,161.70       $3,723.18       $29,884.88        $59,028.59         $867,402.69
31        12/24/06        $26,270.70       $3,614.18       $29,884.88        $55,414.41         $841,131.99
32        01/24/07        $26,380.16       $3,504.72       $29,884.88        $51,909.69         $814,751.83
33        02/24/07        $26,490.08       $3,394.80       $29,884.88        $48,514.89         $788,261.75
34        03/24/07        $26,600.45       $3,284.43       $29,884.88        $45,230.46         $761,661.30
35        04/24/07        $26,711.30       $3,173.58       $29,884.88        $42,056.88         $734,950.00
36        05/24/07        $26,822.59       $3,062.29       $29.884.88        $38,994.59         $708,127.41
37        06/24/07        $26,934.34       $2,950.54       $29,884.88        $36,044.05         $681,193.07
38        07/24/07        $27,046.58       $2,838.30       $29,884.88        $33,205.75         $654,146.49
39        08/24/07        $27,159.26       $2,725.62       $29.884.88        $30,480.13         $626,987.23
40        09/24/07        $27,272.44       $2,612.44       $29,884.88        $27,867.69         $599,714.79
41        10/24/07        $27,586.07       $2,498.81       $29,884.88        $25,368.88         $572,328.72
42        11/24/07        $27,500.18       $2,384.70       $29,884.88        $22,984.18         $544,828.54
43        12/24/07        $27,614.76       $2,270.12       $29,884.88        $20,714.06         $517,213.78
44        01/24/08        $27,729.82       $2,155.06       $29,884.88        $18,559.00         $489,483.96
45        02/24/08        $27,845.37       $2,039.51       $29,884.88        $16,519.49         $461,638.59
46        03/24/08        $27,961.39       $1,923.50       $29,884.88        $14,595.99         $433,677.21
47        04/24/08        $28,077.89       $1,806.99       $29,884.88        $12,789.00         $405,599.32
48        05/24/08        $28,194.89       $1,689.99       $29.884.88        $11,099.01         $377,404.43
------------------------------------------------------------------------------------------------------------
COMMERCIAL LOAN AND SECURITY AGREEMENT FOR: Boyd Brothers Transportation, Inc.         Amortization Schedule
                                                                                                 Page 1 of 2
</Table>
<PAGE>

                             AMORTIZATION SCHEDULE
<Table>
<Caption>
                                                                                        00147900000000427

[INTERNATIONAL LOGO]     Navistar Financial Corporation                                Fax   847 734 4020
                         P.O Box 4024, Schaumburg, IL 60168-4024                       Phone 847 734 4000

     CUSTOMER NAME: Boyd Brothers Transportation, Inc
------------------------------------------------------------------------------------------------------------
 AMOUNT TO FINANCE: $1,577,050.00                 DATE OF NOTE: 5/24/2004            PAYMENT PLAN: OTHER
     TOTAL FINANCE:   $216,042.80          DATE FINANCE BEGINS: 5/24/2004           REBATE METHOD: ACTUARIAL
    TOTAL PAYMENTS: $1,793,092.80                          APR: 5.00                         TERM: 61
------------------------------------------------------------------------------------------------------------
                           Principal         Period          Payment           Finance           Principal
Period        Date           Payment        Finance           Amount         Remaining           Remaining
------------------------------------------------------------------------------------------------------------
<S>      <C>           <C>               <C>            <C>                 <C>               <C>

49        06/24/08        $28,312.36       $1,572.52       $29,884.88         $9,526.49         $349,092.07
50        07/24/08        $28,430.33       $1,454.55       $29,884.88         $8,071.94         $320,661.74
51        08/24/08        $28,548.79       $1,336.09       $29,884.88         $6,735.85         $292,112.95
52        09/24/08        $28,667.74       $1,217.14       $29,884.88         $5,518.71         $263,445.21
53        10/24/08        $28,787.19       $1,097.69       $29,884.88         $4,421.02         $234,658.02
54        11/24/08        $28,907.14         $977.74       $29,884.88         $3,443.28         $205,750.88
55        12/24/08        $29,027.58         $857.30       $29,884.88         $2,585.98         $176,723.30
56        01/24/09        $29,148.54         $736.34       $29,884.88         $1,849.64         $147,574.76
57        02/24/09        $29,269.98         $614.90       $29,884.88         $1,234.74         $118,304.78
58        03/24/09        $29,391.94         $402.94       $29,884.88           $741.80          $88,912.84
59        04/24/09        $29,514.41         $370.47       $29,884.88           $371.33          $59,398.43
60        05/24/09        $29,637.39         $247.49       $29,884.88           $123.84          $29,761.04
61        06/24/09        $29,761.04         $123.84       $29,884.88             $0.00               $0.00
          Total        $1,577,050.00     $216,042.80    $1,793,092.80             $0.00               $0.00

------------------------------------------------------------------------------------------------------------
 THIS SCHEDULE MAY NOT REFLECT THE ACTUAL NET BALANCE OWING IF THE CONTRACT IS TERMINATED PRIOR TO MATURITY.
------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------
SELLER: INTERNATIONAL TRUCK AND ENGINE CORPORATION               BORROWER: BOYD BROTHERS TRANSPORTATION, INC

BY                                                      BY   illegible              TITLE COM/CFO
------------------------------------------------------------------------------------------------------------
       LENDER'S ACCEPTANCE                                     Accepted by Lender at:
       Lender: Navistar Financial Corporation                  2850 West Golf Road,
                                                               Rolling Meadows, IL 60008
       BY _________________________  DATE _______
          Authorized Representative
------------------------------------------------------------------------------------------------------------
COMMERCIAL LOAN AND SECURITY AGREEMENT FOR: BOYD BROTHERS TRANSPORTATION, INC          Amortization Schedule
                                                                                                 Page 2 of 2
</TABLE>

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