WAIVER AND AMENDMENT NO. 2 TO
CREDIT AGREEMENT
This Waiver and Amendment No. 2 to Credit
Agreement (this "Amendment"), dated as of April 17, 2009, is among
Clark Holdings, Inc. (f/k/a Global Logistics Acquisition
Corporation), a Delaware corporation (" Holdings "), The
Clark Group, Inc., a Delaware corporation (" Clark Holdings
"), Clark Distribution Systems, Inc., a Delaware corporation ("
CDS "), Clark Worldwide Transportation, Inc., a Pennsylvania
corporation (" CWT "), Highway Distribution Systems, Inc., a
Delaware corporation (" HDS "), and Evergreen Express Lines,
Inc., a Pennsylvania corporation (together with Holdings, Clark
Holdings, CDS, CWT and HDS, the "Borrowers") and Bank of America,
N.A., (successor-in-interest to LaSalle Bank National Association),
individually as a Lender and as Administrative Agent for the
Lenders (as such terms are each defined in the Credit Agreement
defined below).
Reference is made to that certain Credit
Agreement dated as of February 12, 2008, among the Borrowers, the
financial institutions that are or may from time to time become
parties thereto as lenders (together with their respective
successors and assigns, the "Lenders") and Bank of America, N.A.
(successor-in-interest to LaSalle Bank National Association), as
Administrative Agent for the Lenders (as amended or otherwise
modified through the date hereof, the "Credit Agreement"; except as
otherwise expressly provided for herein, capitalized terms used
herein without definition shall have the meanings ascribed to such
terms in the Credit Agreement).
Borrowers have advised Administrative Agent and
the sole initial Lender that Borrowers have (i)
permitted the Senior Debt to EBITDA Ratio as of the last day of the
Computation Period ended December 31, 2008 to exceed 3.0 to 1.0,
constituting a breach of Section 11.14.1 of the Credit Agreement
and an Event of Default pursuant to Section 13.1.5 of the Credit
Agreement (the "Senior Leverage Default"), (ii) permitted the Fixed
Charge Coverage Ratio as of the last day of the Computation Period
ended December 31, 2008 to be less than 1.25 to 1.0, constituting a
breach of Section 11.14.2 of the Credit Agreement and an Event of
Default pursuant to Section 13.1.5 of the Credit Agreement (the
"Fixed Charge Coverage Default"), (iii) permitted the Total Debt to
EBITDA Ratio as of the last day of the Computation Period ended
December 31, 2008 to exceed 3.5 to 1.0, constituting a breach of
Section 11.14.3 of the Credit Agreement and an Event of Default
pursuant to Section 13.1.5 of the Credit Agreement (the "Total
Leverage Default"), (iv) failed to give Administrative Agent prompt
notice of each of the Senior Leverage Default, Fixed Charge
Coverage Default and Total Leverage Default, constituting separate
breaches of Section 10.1.5(a) of the Credit Agreement and separate
Events of Default pursuant to Section 13.1.5 of the Credit
Agreement (the "Notice Defaults") and (v) an Event of Default
exists pursuant to Section 13.1.6 of the Credit Agreement in
respect of computations A, B and C in the Compliance Certificate
delivered to Administrative Agent for the Fiscal Quarter ended
January 3, 2009 (the "Compliance Certificate Default"; the Senior
Leverage Default, the Fixed Charge Coverage Default, the Total
Leverage Default, the Notice Defaults and the Compliance
Certificate Default being referred to collectively as the "Existing
Defaults"). Borrowers have requested that
Administrative Agent and the sole initial Lender waive the Existing
Defaults. Borrowers has further agreed with
Administrative Agent and the sole initial Lender to amend and
modify the Credit Agreement as provided herein, subject to the
terms and provisions hereof.
NOW, THEREFORE, the parties hereto hereby agree
as follows:
1. Waiver
. Subject to the conditions set forth in this Amendment,
and in reliance on the representations, warranties, covenants and
other agreements contained herein, Administrative Agent and the
sole initial Lender hereby waive the Existing
Defaults. The foregoing waivers are expressly intended
to be limited in scope and, except as otherwise expressly provided,
shall not be construed as a waiver, consent or as an amendment or
modification of the Credit Agreement.
2. Amendments to
Credit Agreement . Subject to the conditions set forth in this
Amendment, and in reliance on the representations, warranties,
covenants and other agreements contained herein, the parties hereto
hereby agree to amend and modify the Credit Agreement as
follows:
2.1. The defined term
"Applicable Margin", set forth in Section 1.1 of the Credit
Agreement, is hereby deleted in its entirety.
2.2. The defined term
"Base Rate Margin", set forth in Section 1.1 of the Credit
Agreement, is hereby amended and restated in it is entirety as
follows:
Base Rate Margin means, as of any date of determination, 2.50%
per annum.
2.3. The defined term
"Borrowing Base", set forth in Section 1.1 of the Credit Agreement,
is hereby amended and restated in it is entirety as
follows:
Borrowing Base means an amount equal to the sum of (i) 80%
of the unpaid amount of all Eligible Accounts plus (ii) 50% of
the appraised fair market value of Eligible Real Estate, plus (iii)
100% of the value, as of any applicable date of determination, of
Cash Equivalent Investments in any deposit accounts and/or
securities accounts subject to a control agreement in form and
substance acceptable to Administrative Agent minus (iv) such
reserves and allowances as the Administrative Agent deems necessary
or appropriate in its reasonable discretion, including as necessary
or appropriate to reflect any events, conditions, contingencies,
risks or other circumstances which may arise from time to time with
respect to any Loan Party.
2.4. The defined term
"Computation Period", set forth in Section 1.1 of the Credit
Agreement, is hereby amended and restated in its entirety as
follows:
Computation Period means each period of twelve consecutive Fiscal
Months ending on the last day of a Fiscal Month.
2.5. The defined term
"EBITDA", set forth in Section 1.1 of the Credit Agreement, is
hereby amended and restated in its entirety as follows:
EBITDA means, for any period, Consolidated Net Income
for such period plus, in each case to the extent deducted in
determining such Consolidated Net Income for such period, Interest
Expense, income tax expense, depreciation and amortization,
transaction costs, expenses and severance expense in connection
with Permitted Acquisitions, in each case to the extent approved by
Administrative Agent in its reasonable discretion, charges
resulting from the impairment of goodwill and intangible assets
attributable to the Purchase Agreement, and costs and expenses in
connection with the Related Agreements (other than the Employment
Agreements), in each case to the extent approved by Administrative
Agent in its reasonable discretion; provided, that, notwithstanding
anything to the contrary contained herein, (i) for the Fiscal
Months ending on or about February 28, 2007, March 31, 2007,
April 30, 2007, May 31, 2007, June 30, 2007,
July 31, 2007, August 31, 2007, September 30, 2007,
October 31, 2007, November 30, 2007 and December 31,
2007, EBITDA shall be deemed to be $629,275, $680,185, $1,046,641,
$557,864, $995,531, $887,473, $922,805, $1,036,710, $1,222,029,
$403,135 and ($461,991), respectively, and (ii) for the Fiscal
Month ending on or about January 31, 2008, EBITDA shall be computed
based on the consolidated results of Clark Holdings and its
Subsidiaries pursuant to financial statements delivered pursuant to
Section 10.1.2 , subject to adjustments consistent with
those used in determining the amounts specified in the preceding
clause (i).
2.6. The defined term
"L/C Fee Rate", set forth in Section 1.1 of the Credit Agreement,
is hereby amended and restated in it is entirety as
follows:
L/C Fee Rate means, as of any date of determination, 4.0% per
annum; provided , that with respect to Cash Collateralized
Letters of Credit, the L/C Fee Rate shall mean 1.75% per
annum.
2.7. The defined term
"LIBOR Margin", set forth in Section 1.1 of the Credit Agreement,
is hereby amended and restated in it is entirety as
follows:
LIBOR Margin means, as of any date of determination, 4.00%
per annum.
2.8. The defined term
"LIBOR Rate", set forth in Section 1.1 of the Credit Agreement, is
hereby amended by inserting the following new sentence at the end
of such defined term: "Notwithstanding anything to the
contrary set forth in this definition, at no time shall the LIBOR
Rate be less than 3.0% per annum."
2.9. The defined term
"Non-Use Fee Rate", set forth in Section 1.1 of the Credit
Agreement, is hereby amended and restated in it is entirety as
follows:
Non-Use Fee Rate means, as of any date of determination, 0.675%
per annum.
2.10. The defined term
"Revolving Commitment", set forth in Section 1.1 of the Credit
Agreement, is hereby amended and restated in its entirety as
follows:
Revolving Commitment means, as to any Lender as of any date of
determination, the amount specified for such Lender as the
"Revolving Commitment Amount" on Annex A hereto,
subject to adjustment pursuant to any and all Assignment Agreements
entered into by such Lender following the Closing Date, in each
case as such amount may be reduced from time to time pursuant to
Section 6.1 .
2.11. The defined term
"Revolving Loan Availability", set forth in Section 1.1 of the
Credit Agreement, is hereby amended and restated in its entirety as
follows:
Revolving Loan Availability
means, as of any date of
determination, the lesser of (i) the aggregate Revolving
Commitments of all Lenders and (ii) the sum of (x) the Borrowing
Base plus (y) the Stated Amount of Cash Collateralized
Letters of Credit on such date minus (z) the outstanding
principal amount of the Term Loans on such date.
2.12. The defined term
"Tangible Net Worth" is hereby added to Section 1.1 of the Credit
Agreement in appropriate alphabetical order, which term shall read
as follows:
Tangible Net Worth of Holdings and its Subsidiaries means, as of
any date, the value of the total consolidated assets of Holdings
and its Subsidiaries (including leaseholds and leasehold
improvements and reserves against assets, but excluding goodwill,
patents, trademarks, trade names, organization expense, unamortized
debt discount and expense, capitalized or deferred research and
development costs, deferred marketing expenses and other like
intangibles according to GAAP and monies due from Affiliates,
officers, directors, employees, shareholders, members or managers
of Holdings or any of its Subsidiaries), less the total
consolidated liabilities of Holdings and its
Subsidiaries.
2.13. Section 2.1.1 of
the Credit Agreement is hereby amended and restated in its entirety
as follows:
2.1.1
Revolving Commitment . Each Lender with a
Revolving Commitment agrees to make loans on a revolving basis ("
Revolving Loans ") from time to time until the Termination
Date in such Lender's Pro Rata Share of such aggregate amounts as
any Borrower may request from all Lenders; provided that
(i) the Revolving Outstandings will not at any time exceed
Revolving Loan Availability and (ii) the Holdco Borrowers
shall have no right, following the Closing Date, to request any
Revolving Loans, and no Lender shall have any obligation following
the Closing Date to make any Revolving Loans to or for the account
of any Holdco Borrower.
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