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EXHIBIT 10.8
COMPASS BANK COMPASS BANK
[LOGO] X.X. XXX 0000
XXXXXX, XXXXXXX 00000
334-712-7030
March 27, 2001
Mr. Xxxxxxx Xxxxxx
Xxxx Bros. Transportation, Inc.
0000 Xxxxxxx 00
Xxxxxxx, XX 00000
RE: CREDIT AND SECURITY AGREEMENT BETWEEN COMPASS BANK ("BANK") AND XXXX
BROS. TRANSPORTATION, INC. ("BORROWER") DATED APRIL 11, 2000
Dear Xxxxxxx:
As of December 31, 2000, Xxxx Bros. Transportation, Inc. was in violation of
Section 6.01 and Section 6.05 of the above referenced Credit and Security
Agreement (as amended, the "Agreement"). The Borrower has requested and Bank
has agreed to waive the defaults under the Loan Agreement existing as of
December 31, 2000 solely by virtue of the violations of Section 6.01 and
Section 6.05 of the Agreement, as outlined above. This one-time limited waiver
is effective only in the specific instance and for the purpose for which given
and nothing contained or provided herein shall be construed as granting a
waiver of any default as specifically set forth herein or as allowing Borrower
to violate or fail to perform fully (i) Section 6.01 and Section 6.05 of
Agreement after December 31, 2000 or (ii) any other provisions of the Loan
Documents at any time.
Further, Compass Bank agrees to modify the covenants of these two section as
follows:
Cash Flows-To-Current Maturities of Long-Term Debt
This covenant references in Section 6.01 of the above-referenced
Agreement will be modified from 1.2:1.0 to 1.1:1.0. This modified
covenant will be tested at June 30, 2001. On July 1, 2001, the covenant
will return to 1.2:1.0 as defined in the Agreement.
Debt-to-Tangible Net Worth
This covenant referenced in Section 6.05 of the above-referenced
Agreement will be modified from 2.75:1.00 to 2.8:1.0. This modified
covenant will be tested at June 30, 2001. Only July 1, 2001, the
covenant will return to 2.75:1.00 as defined in the Agreement.
Tangible Net Worth is defined as the Borrower's Net Worth less any
intangible assets, receivables from shareholders or related entities.
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If the terms of this letter are acceptable to you, please execute this letter
below and return the original hereof to the Bank.
Sincerely,
/s/ Xxx Xxxx
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Xxx Xxxx
Vice President
ACKNOWLEDGED AND AGREED;
XXXX BROS. TRANSPORTATION, INC.
By: [signature illegible]
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Its: CFO
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