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OMNIBUS AMENDMENT WAIVER AND AMENDMENT NO. 3 TO THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT AND AMENDMENT NO. 4 TO RECEIVABLES SALE AGREEMENT

Receivables Purchase Transfer Agreement

OMNIBUS AMENDMENT WAIVER AND AMENDMENT NO. 3 TO THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT AND AMENDMENT NO. 4 TO RECEIVABLES SALE AGREEMENT | Document Parties: YRC WORLDWIDE INC | Amsterdam Funding Corporation | Falcon Asset Securitization Company LLC, Three Pillars Funding LLC | GREENWICH CAPITAL MARKETS, INC | JPMorgan Chase Bank, NA, SunTrust Bank, Wachovia Bank, National Association | Roadway Express, Inc | ROYAL BANK OF SCOTLAND PLC | SunTrust Robinson Humphrey, Inc, Wachovia Bank, National Association | USF Holland, Inc | USF Reddaway, Inc | Yellow Roadway Corp | Yellow Transportation, Inc | YRC Assurance Co Ltd | YRC Inc You are currently viewing:
This Receivables Purchase Transfer Agreement involves

YRC WORLDWIDE INC | Amsterdam Funding Corporation | Falcon Asset Securitization Company LLC, Three Pillars Funding LLC | GREENWICH CAPITAL MARKETS, INC | JPMorgan Chase Bank, NA, SunTrust Bank, Wachovia Bank, National Association | Roadway Express, Inc | ROYAL BANK OF SCOTLAND PLC | SunTrust Robinson Humphrey, Inc, Wachovia Bank, National Association | USF Holland, Inc | USF Reddaway, Inc | Yellow Roadway Corp | Yellow Transportation, Inc | YRC Assurance Co Ltd | YRC Inc

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Title: OMNIBUS AMENDMENT WAIVER AND AMENDMENT NO. 3 TO THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT AND AMENDMENT NO. 4 TO RECEIVABLES SALE AGREEMENT
Governing Law: New York     Date: 3/2/2009
Industry: Trucking     Law Firm: Latham Watkins     Sector: Transportation

OMNIBUS AMENDMENT WAIVER AND AMENDMENT NO. 3 TO THIRD AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT AND AMENDMENT NO. 4 TO RECEIVABLES SALE AGREEMENT, Parties: yrc worldwide inc , amsterdam funding corporation , falcon asset securitization company llc  three pillars funding llc , greenwich capital markets  inc , jpmorgan chase bank  na  suntrust bank  wachovia bank  national association , roadway express  inc , royal bank of scotland plc , suntrust robinson humphrey  inc  wachovia bank  national association , usf holland  inc , usf reddaway  inc , yellow roadway corp , yellow transportation  inc , yrc assurance co ltd , yrc inc
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Exhibit 10.2.4

OMNIBUS AMENDMENT

WAIVER AND AMENDMENT NO. 3 TO THIRD AMENDED AND RESTATED

RECEIVABLES PURCHASE AGREEMENT AND AMENDMENT NO. 4

TO RECEIVABLES SALE AGREEMENT

THIS OMNIBUS AMENDMENT ( this “Amendment” ) is entered into as of February 12, 2009 by and among:

(a) Yellow Roadway Receivables Funding Corporation, a Delaware corporation (the “Seller” or “YRRFC” ),

(b) YRC Worldwide Inc., a Delaware corporation (the “Performance Guarantor” ),

(c) JPMorgan Chase Bank, N.A., SunTrust Bank, Wachovia Bank, National Association, and The Royal Bank of Scotland plc as successor to ABN AMRO Bank, N.V. (each of the foregoing a “Committed Purchaser” ),

(d) Falcon Asset Securitization Company LLC, Three Pillars Funding LLC and Amsterdam Funding Corporation (each of the foregoing, a “Conduit” ),

(e) YRC Assurance Co. Ltd., an exempted company incorporated with limited liability under the laws of Bermuda, individually and as agent for itself (together with its successors and permitted assigns and in such latter capacity, a “Co-Agent” ),

(f) Wachovia Bank, National Association, as letter of credit issuer (the “LC Issuer” ),

(g) SunTrust Robinson Humphrey, Inc., Wachovia Bank, National Association, The Royal Bank of Scotland plc as successor to ABN AMRO Bank, N.V. and JPMorgan Chase Bank, N.A. (each of the foregoing, a “Co-Agent” ),

(h) JPMorgan Chase Bank, N.A., as administrative agent for the Groups (together with its successors and permitted assigns and in such capacity, the “Administrative Agent” and together with the Co-Agents, and their respective successors and permitted assigns, the “Agents” ), and

(i) YRC Inc., a Delaware corporation formerly known as Yellow Roadway Corp. and successor by merger to Yellow Transportation, Inc. and Roadway Express, Inc. (“ YRC ”), USF Reddaway, Inc., an Oregon corporation ( “Reddaway” ), and USF Holland, Inc., a Michigan corporation (together with YRC and Reddaway, the “Originators” ),

with respect to (i) that certain Third Amended and Restated Receivables Purchase Agreement, dated as of April 18, 2008, among the Seller, the Committed Purchasers, the Conduits, LC Issuer and the Agents (as amended, restated, supplemented or otherwise modified from time to time,

 

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the “RPA” ), and (ii) that certain Amended and Restated Receivables Sale Agreement, dated as of May 24, 2005, by and between the Originators, as sellers, and YRRFC, as purchaser (as amended, restated, supplemented or otherwise modified from time to time, the “RSA” ).

FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Defined Terms .

(a) Capitalized terms used herein and not otherwise defined shall have the meanings attributed to such terms in the RPA, or if not defined therein, the RSA.

(b) As used in this Amendment:

Additional Representation Default ” means any Default (as defined in the YRCW Credit Agreement) or Event of Default (as defined in the YRCW Credit Agreement) which has arisen or may arise under clause (c)  of Article VII of the YRCW Credit Agreement as a result of representations or warranties made or deemed made by or on behalf of any Borrower (as defined in the YRCW Credit Agreement) or any Subsidiary (as defined in the YRCW Credit Agreement) in connection with any Loan Document (as defined in the YRCW Credit Agreement) or in any report, certificate or other document furnished pursuant to or in connection with any Loan Document proving to have been incorrect in any material respect when made or deemed made solely as a result of the Lien Covenant Default.

Lien Covenant Default ” means any Default (as defined in the YRCW Credit Agreement) or Event of Default (as defined in the YRCW Credit Agreement) arising under clause (d)  of Article VII of the YRCW Credit Agreement as a result of the failure of the Loan Parties (as defined in the YRCW Credit Agreement) to comply with the negative covenants set forth in Section 6.02 of the YRCW Credit Agreement by virtue of the Liens (as defined in the YRCW Credit Agreement) granted in respect of those certain secured intercompany notes identified on Schedule II hereto.

Related Servicer Defaults ” means any Servicer Default under Section 7.1(b) of the RPA that may have arisen as a result of representations or warranties, made or deemed made by or on behalf of Seller in connection with the RPA or any Transaction Document or in any report, certificate or other document furnished pursuant to or in connection with the RPA or any Transaction Document, proving to have been incorrect when made or deemed made or conditions to any Credit Event not being satisfied solely as a result of the existence of a “Default” or “Event of Default” pursuant to Section 7.1(h) of the RPA arising from the Lien Covenant Default or the Additional Representation Default.

 

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2. Waivers . Subject to the satisfaction or waiver of the conditions precedent set forth in Section 6(a) below, the Required Co-Agents, on behalf of the Agents and the Purchasers, hereby waive the following:

(a) the Specified Servicer Defaults (as defined in the Limited Waiver and Second Amendment to Third Amended and Restated Receivables Purchase Agreement dated as of January 15, 2009, among Seller, Performance Guarantor, the Committed Purchasers, the Conduits and the Agents), and

(b) the Related Servicer Defaults arising prior to the date hereof.

3. Amendments to RPA . The RPA is hereby amended as follows:

(a) Section 11.14 of the RPA is hereby amended and restated in its entirety to read as follows:

“Section 11.14. Characterization .

(a) It is the intention of the parties hereto that each purchase of a Purchaser Interest hereunder shall constitute an absolute and irrevocable sale for all purposes other than financial accounting purposes, which purchase shall provide the applicable Purchaser with the full benefits of ownership of the applicable Receivable Interest. Except as specifically provided in this Agreement, each sale of a Purchaser Interest hereunder is made without recourse to the Seller; provided, however, that (i) the Seller shall be liable to each of the Purchasers and the Agents for all representations, warranties and covenants made by the Seller pursuant to the terms of this Agreement, and (ii) such sale does not constitute and is not intended to result in an assumption by any Purchaser or Agent or any assignee thereof of any obligation of the Seller or any Originator or any other person arising in connection with the Receivables, the Related Security, or the related Invoices, or any other obligations of the Seller or any Originator.

(b) If, notwithstanding the intention of the parties expressed above, any sale or transfer by Seller hereunder shall be characterized as a secured loan and not a sale or such sale shall for any reason be ineffective or unenforceable (any of the foregoing being a “Recharacterization” ), then this Agreement shall be deemed to constitute a security agreement under the UCC and other applicable law. In the case of any Recharacterization, the Seller represents and warrants that each remittance of Collections to any Agent or the Purchasers hereunder will have been (i) in payment of a debt incurred in the ordinary course of business or financial affairs and (ii) made in the ordinary course of business or financial affairs.”

(b) The definitions of “Applicable Margin” and “Reserve Requirement” in Exhibit I to the RPA are deleted in their entirety.

 

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(c) Exhibit I of the RPA is hereby amended by adding, in their appropriate alphabetical order, the following definitions:

“Audit Reserve Percentage” means 5.00%.

“Base LIBOR Rate” means the rate per annum equal to (a) the rate at which deposits in U.S. Dollars are offered by the Reference Bank to first-class banks in the London interbank market at approximately 11:00 a.m. (London time) two Business Days prior to the first day of the relevant Tranche Period, such deposits being in the approximate amount of the Capital of the Purchaser Interest to be funded or maintained, multiplied by (b) the Statutory Reserve Rate (expressed as a decimal) applicable to such Tranche Period.

Capital Expenditures ” shall have the meaning specified in the YRCW Credit Agreement.

Consolidated EBITDA ” shall have the meaning specified in the YRCW Credit Agreement.

Liquidity ” means, as of any Business Day, the average of the Performance Guarantor’s Liquidity Amount as of the end of business (US Central time) for the immediately preceding five (5) Business Days, which average shall be tested promptly in the morning on each Business Day; provided , however , that on and after any Business Day on which Liquidity is less than $150,000,000, the Performance Guarantor shall thereafter provide such daily calculations via-email PDF to the Administrative Agent (“ Email Reports ”) no later than 5:00 p.m. (New York City time) on each Business Day until Liquidity exceeds $150,000,000 for ten (10) consecutive Business Days at which point such Email Reports shall not be required until Liquidity subsequently drops below $150,000,000.

Liquidity Amount ” shall have the meaning specified in the YRCW Credit Agreement

Liquidity Notification Date ” means any date on which the Liquidity of the Performance Guarantor is less than $100,000,000 (each such occurrence, a “ Liquidity Deficiency ”), whether or not the Performance Guarantor does in fact notify the Administrative Agent of such Liquidity Deficiency.

Statutory Reserve Rate ” shall have the meaning specified in the YRCW Credit Agreement.

(d) The definition in Exhibit I to the RPA of each of the terms specified below is hereby amended and restated in its entirety to read, respectively, as follows:

“Aggregate Reserve Percentage” means on any date of determination, the sum of (a) the Loss Reserve Percentage, plus (b) the Discount Reserve Percentage, plus (c) the Dilution Reserve Percentage, plus (d) the Servicer Fee Percentage, plus (e) from and after March 31, 2009, if the Administrative Agent

 

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has not notified the other Agents and the Seller that (i) it has received a report regarding the audit of the Receivables in progress by FTI Consulting, Inc. as of February 11, 2009, under Section 5.1(d) of this Agreement and (ii) all material issues of noncompliance of Receivables with this Agreement or the Credit and Collection Policy identified in such report have been resolved to the Administrative Agent’s reasonable satisfaction, the Audit Reserve Percentage.

“Base Rate” means, with respect to each Group, a rate per annum equal to the highest of (i) the corporate base rate, prime rate or base rate of interest, as applicable, announced by such Group’s Reference Bank from time to time, changing when and as such rate changes, (ii)   1 / 2 of 1% above the Federal Funds Effective Rate, changing when and as such rate changes and (iii) the LIBOR Rate.

“Calculation Period” means, for the purposes of any calculation defined herein which references a “Calculation Period,” (i) during an Asynchronous Accounting Period, (A) in the case of any amounts used in such calculation derived from or associated with Receivables originated by YRC, the calendar month designated in the table below and (B) in the case of any amounts used in such calculation derived from or associated with Receivables originated by USF Reddaway Inc. or USF Holland Inc., the accounting period designated in the table below, it being understood that “Calculation Period” is a collective term referring to both component periods as specified in (A) and (B) above and as indicated in the table below, and the phrases “Calculation Period most recently ended” and “as of the last day of the Calculation Period most recently ended” refer collectively to both respective component periods or the last day of both respective component periods (as the case may be) as specified in (A) and (B) above and as indicated in the table below, or (ii) at all other times, each calendar month:

 

CALCULATION

PERIOD

  

CALENDAR

MONTH

  

ACCOUNTING

PERIOD

  

CORRESPONDING

DATES

2

  

February 2009

  

4 weeks

  

2/1/09 - 2/28/09

3

  

March 2009

  

5 weeks

  

3/1/09 - 4/4/09

4

  

April 2009

  

4 weeks

  

4/5/09 - 5/2/09

5

  

May 2009

  

4 weeks

  

5/3/09 - 5/30/09

6

  

June 2009

  

5 weeks

  

5/31/09 - 7/4/09

7

  

July 2009

  

4 weeks

  

7/5/09 - 8/1/09

8

  

August 2009

  

4 weeks

  

8/2/09 - 8/29/09

9

  

September 2009

  

5 weeks

  

8/30/09 - 10/3/09

10

  

October 2009

  

4 weeks

  

10/4/09 - 10/31/09

11

  

November 2009

  

4 weeks

  

11/1/09 - 11/28/09

12

  

December 2009

  

5 weeks

  

11/29/09 - 12/31/09

1

  

January 2010

  

4 weeks

  

1/1/10 - 1/30/10

2

  

February 2010

  

4 weeks

  

1/31/10 - 2/27/10

 

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“Concentration Limit” means:

(a) for any Obligor and its Affiliates considered as if they were one and the same Obligor, an amount equal to (i) 2.80%, multiplied by (ii) the aggregate Outstanding Balance of all Eligible Receivables at such time; and

(b) at any time, for all Government Receivables, 2.80% of the aggregate Outstanding Balance of all Eligible Receivables at such time;

provided, however, that the Administrative Agent may from time to time designate other amounts (each, a “ Special Concentration Limit ”) for any Obligor or class of Receivables, it being understood and agreed that any of the Agents may, upon not less than three Business Days’ notice to the Seller and the other Agents, cancel any Special Concentration Limit.

“Dilution Reserve Percentage” means, on any date of determination, the greater of (i) the Dilution Reserve Percentage Floor and (ii) the percentage determined pursuant to the following formula:

{(2.50 x ED) + [(DS - ED) x (DS/ED) ]} x DHR

where:

ED        = the Expected Dilution on such date;

DS        = the Dilution Spike as of such date; and

DHR     = the Dilution Horizon Ratio on such date.

“Discount Reserve” means, on any date of determination, the amount determined pursuant to the following formula:

{ (D + F) + [ (C x 3 x DR) x 3 x DSO ] }

                                             360

where :

D = the accrued and unpaid Discount for all Receivable Interests of the Purchasers as of the date of determination;

F = the aggregate amount of accrued and unpaid Servicer Fees and other fees owing pursuant to the Fee Letters as of the date of determination;

C = the aggregate Capital outstanding as of the date of determination;

DR = the highest Discount Rate applicable on the date of determination; and

DSO = the Days Outstanding.

 

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LC Sublimit” means the lesser of (a) $105,000,000 and (b) the aggregate Commitments.

“LIBOR Rate” means an interest rate per annum equal to the sum of (a) the greater of (i) the Base LIBOR Rate and (ii) 3.50% multiplied by the Statutory Reserve Percentage, plus (b) 6.50%. The LIBOR Rate shall be rounded, if necessary, to the next higher 1/16 of 1%.

“LMIR” means, on any date of determination, a rate per annum equal to the sum of (a) the greater of (i) the LIBOR Market Index Rate and (ii) 3.50% multiplied by the Statutory Reserve Percentage, plus (b) 6.50%.

“Loss Reserve Percentage” means, on any date of determination, the greater of (i) 14.0%, and (ii) the percentage equal to (a) 2.5 multiplied by (b) the highest of the past twelve rolling 3-Calculation Period average Default Ratios, multiplied by (c) a fraction having a numerator equal to the aggregate amount of Receivables generated during the preceding 4 Calculation Periods and denominator equal to the Net Receivables Balance on the date of determination.

“Servicer Fee Reserve” means, on any date, an amount determined pursuant to the following formula:

SFRP x NRB x 3 x DSO

                        360

where:

SFRP = the Servicer Fee Reserve Percentage as of the date of determination;

NRB = the Net Receivables Balance as of the opening of business of the Servicer on such date; and

DSO = the Days Outstanding on such date of determination.

“Stated Liquidity Termination Date” means February 11, 2010.

“Trigger Event” means (a) the Required Co-Agents shall not have waived a Liquidity Deficiency within five (5) Business Days of the Liquidity Notification Date, (b) the failure of the Performance Guarantor to maintain, as of the end of the accounting periods set forth below, Consolidated EBITDA in the minimum level set forth below next to such accounting period (for each such period, “ Minimum Consolidated EBITDA ”); provided , however , that from and after the date of the consummation of the Permitted Disposition (as defined in the YRCW Credit Agreement) the Minimum Consolidated EBITDA covenant levels in the table below shall be modified as set forth on Schedule I attached hereto for the fiscal quarter in which the Permitted Disposition is consummated and for each fiscal quarter thereafter:

 

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Period

  

Minimum EBITDA
(pre-Permitted
Disposition)

For the fiscal quarter ending on June 30, 2009

  

$

45,000,000

For the two consecutive fiscal quarters ending on September 30, 2009

  

$

130,000,000

For the three consecutive fiscal quarters ending on December 31, 2009

  

$

180,000,000

For the four consecutive fiscal quarters ending on March 31, 2010

  

$

205,000,000

For the four consecutive fiscal quarters ending on June 30, 2010

  

$

205,000,000

For the four consecutive fiscal quarters ending on September 30, 2010

  

$

215,000,000

For the four consecutive fiscal quarters end


 
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