EXHIBIT 10.23
EXECUTION COPY
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MASTER AMENDMENT AGREEMENT
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dated as of April 11, 2002
among
APEX TRAILER LEASING & RENTALS, L.P.,
as Lessee
WABASH NATIONAL CORPORATION,
as Guarantor
WABASH STATUTORY TRUST - 2000,
as Lessor
STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION,
not in its individual capacity except as provided herein, but solely as Trustee
THE INSTITUTIONS INDICATED IN SCHEDULE I,
as Tranche A Lenders
FLEET CAPITAL CORPORATION,
as Tranche B Lender
FLEET CAPITAL CORPORATION,
as Owner Participant
FLEET CAPITAL CORPORATION,
as Collateral Agent
and
FLEET CAPITAL CORPORATION,
as Administrative Agent
Table of Contents
Page
ARTICLE I DEFINITIONS; WAIVER................................................1
SECTION 1.1 Use of Defined Terms..........................................1
SECTION 1.2 Waiver of Rights..............................................2
ARTICLE II AMENDMENTS.........................................................2
SECTION 2.1 Amendments to the Participation Agreement.....................2
(a) Amendments to Section 6.1(e)..........................................2
(b) Deletion of Section 6.1(f)............................................3
(c) Deletion of Section 6.1(g)............................................3
(d) Amendments to Section 6.1.............................................3
(e) Deletion of Section 2.3(q)............................................4
(f) Amendment to Section 10.1(b)..........................................4
(g) Amendments to Section 13..............................................5
SECTION 2.2 Amendments to Appendix A to the Participation Agreement.......5
(a) Amendment to Definition of "Applicable Margin"........................5
(b) Addition of Definition of "Bank Group"................................6
(c) Addition of Definition of "Credit Agreement"..........................6
(d) Addition of Definition of "Custodian".................................6
(e) Amendment to Definition of "Initial Letter of Credit."................6
(f) Amendment to Definition of "Interest Rate"............................6
(g) Amendment to Definition of "Letter of Credit".........................7
(h) Amendment to Definition of "Letter of Credit Amount"..................7
(i) Amendment to Definition of "Maturity Date"............................7
(j) Addition of Definition of "Master Equipment Lease Agreement.".........7
(k) Addition of Definition of "Master Equipment Lease Parties."...........7
(l) Addition of Definition of "Noteholder"................................8
(m) Addition of Definition of "Note Purchase Agreement"...................8
(n) Addition of the Definition of "Receivables Group."....................8
(o) Amendment to Definition of "Receivables Purchase Agreement."..........8
(p) Addition of the Definition of "Reserve Amount"........................8
(q) Addition of the Definition of "Restructuring Fee".....................9
SECTION 2.3 Amendments to the Lease.......................................9
(a) Amendment to Section 1.4..............................................9
(b) Deletion of Article VI................................................9
(c) Amendment to Section 9.2(ii) of the Lease.............................9
(d) Amendment to Section 13.1 of the Lease...............................10
(e) Amendment to Section 17.1 of the Lease...............................10
ARTICLE III CLOSING CONDITIONS...............................................11
SECTION 3.1 Amendment Closing Date.......................................11
SECTION 3.2 Closing Conditions...........................................12
(a) Amendments to Credit Agreement and Note Purchase Agreements..........12
(b) Restructuring Fee....................................................12
(c) Termination and Replacement of Limited Power of Attorney.............12
(d) Collateral Estate....................................................12
(e) Representations and Warranties.......................................12
(f) Closing Proceedings..................................................12
(g) Opinions of Counsel..................................................13
(h) Preliminary Desktop Appraisal........................................13
(i) Establishment of Account for Reserve Amount..........................13
(j) Fees and Expenses....................................................13
ARTICLE IV MISCELLANEOUS PROVISIONS.........................................13
SECTION 4.1 Ratification of and References to the Operative Documents....13
SECTION 4.2 Headings, Etc................................................13
SECTION 4.3 Counterparts.................................................13
SECTION 4.4 Governing Law; Entire Agreement..............................14
SECTION 4.5 Instructions to the Trustee..................................14
SCHEDULE I Institutions Participating as Tranche A Lenders
APPENDIX 1 TO SCHEDULE II Definitions for the purposes of Schedule II
SCHEDULE II Financial Covenants
SCHEDULE III Excepted Representations and Warranties
EXHIBIT A Form of Authorized Officer's
Certificate of Compliance
EXHIBIT B Form of Power of Attorney
MASTER AMENDMENT AGREEMENT
THIS MASTER AMENDMENT AGREEMENT (this "Amendment"), dated as of April
11, 2002, to the Amended and Restated Participation Agreement (the
"Participation Agreement"), dated as of March 30, 2001, and the Amended and
Restated Equipment Lease (the "Lease"), dated as of March 30, 2001, is entered
into by and among APEX TRAILER LEASING & RENTALS, L.P., a Delaware limited
partnership, as the Lessee (in such capacity, together with its permitted
successors, the "Lessee"); WABASH NATIONAL CORPORATION, a Delaware corporation,
as guarantor (the "Guarantor"); WABASH STATUTORY TRUST - 2000, a Connecticut
statutory trust, as Lessor (together with its permitted successors and assigns,
the "Lessor"); STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT, NATIONAL
ASSOCIATION, not in its individual capacity, except as set forth herein, but
solely as Trustee (the "Trustee" and in its individual capacity, the "Trust
Company"); the Institutions indicated in Schedule I as "Tranche A Lenders"
(each, together with its permitted successors and assigns, a "Tranche A Lender,"
and together with the other Tranche A Lenders, the "Tranche A Lenders"), FLEET
CAPITAL CORPORATION, a Rhode Island corporation ("Fleet Capital"), as the
Tranche B Lender (in such capacity, together with its permitted successors and
assigns, the "Tranche B Lender", and together with the Tranche A Lenders, the
"Lenders"); FLEET CAPITAL, as the Owner Participant (in such capacity, together
with its permitted successors and permitted assigns, the "Owner Participant",
and together with the Lenders, the "Participants"); FLEET CAPITAL, as
administrative agent for the Lenders (in such capacity, together with its
permitted successors and assigns, the "Administrative Agent"); and FLEET
CAPITAL, as collateral agent for the Lenders (in such capacity, together with
its permitted successors and assigns, the "Collateral Agent").
W I T N E S S E T H:
WHEREAS, the Lessee, the Lessor, the Guarantor, the Trustee, the
Lenders, the Owner Participant, the Administrative Agent, and the Collateral
Agent have heretofore entered into a certain Participation Agreement dated March
30, 2001;
WHEREAS, the Lessee and the Lessor have heretofore entered into a
certain Lease dated as of March 30, 2001;
WHEREAS, the Lessee, the Lessor, the Guarantor, the Trustee, the
Lenders, the Owner Participant, the Administrative Agent, and the Collateral
Agent now desire to amend the Participation Agreement and the Lessee and Lessor
now desire to amend the Lease.
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE I
DEFINITIONS; WAIVER
SECTION 1.1 Use of Defined Terms. Capitalized terms used but not otherwise
defined in this Amendment have the respective meanings specified in Appendix A
to the Participation Agreement; and the rules of interpretation set forth in
Appendix A to the Participation Agreement shall apply to this Amendment.
SECTION 1.2 Waiver of Rights. The Participants, Lessor, Collateral Agent and
Administrative Agent hereby waive their right to declare a Lease Event of
Default under Section 13.1(e) of the Lease arising from a breach by Lessee or
Guarantor of Sections 6.1(e)(ii), (e)(iii), (e)(v) (insofar as such provision
relates to existing Lease Events of Default and not to future Unmatured Lease
Defaults or Lease Events of Default), (f) or (g) of the Participation Agreement
in consideration for the amendments set forth herein.
ARTICLE II
AMENDMENTS
SECTION 2.1 Amendments to the Participation Agreement.
(a) Amendments to Section 6.1(e).
Section 6.1(e) of the Participation Agreement is hereby amended to
include the following provisions after Section 6.1(e)(v):
(vi) as soon as available and in any event, within thirty (30)
days after the last day of each calendar month, or within forty five
(45) days after the last day of each calendar month to the extent such
calendar month constitutes a quarter end, (x) a copy of Lessee's
balance sheet and related statements of income, retained income and
cash flows, of Lessee for such month, setting forth in each case in
comparative form the figures for the previous month, all in reasonable
detail, and certified by the chief financial officer, treasurer or
corporate controller of Lessee as being complete and correct, prepared
in accordance with generally accepted accounting principles and fairly
presenting Lessee's financial condition and results of operations; (y)
to the extent available, a copy of the Guarantor's consolidated balance
sheet, and related consolidated statements of income, retained income
and cash flows, of Guarantor and its consolidated subsidiaries for such
month, setting forth in each case in comparative form the figures for
the previous month, all in reasonable detail, and certified by the
chief financial officer, treasurer or corporate controller of Guarantor
as being complete and correct, prepared in accordance with generally
accepted accounting principles and fairly presenting Guarantor's
financial condition and results of operations; and (z) an Authorized
Officer's Certificate of each of the Lessee and the Guarantor, in each
case in the form attached hereto as Exhibit A (with appropriate
insertions), stating that such Obligor has duly performed and complied
with all conditions contained in the Financial Covenants attached
hereto in Schedule II required to be performed or complied with by it;
(vii) as soon as available and in any event within fifteen
(15) days after the last day of each calendar month, (x) a copy of all
information relating to the Equipment subject to the Lease and (y) a
report indicating the status, sale or other disposition of each Unit of
Equipment for such month;
(viii) in the course of each calendar month, all information
concerning the business or financial condition of the Lessee or the
Guarantor as is provided to (and at the same time as is provided to)
the Bank Group, the Receivables Group, the Master Equipment Lease
Parties or any of the Noteholders; and
(ix) in the course of each calendar month, all other
information as is provided to (and at the same time as is provided to)
the Bank Group, the Receivables Group, the Master Equipment Lease
Parties or any of the Noteholders.
(b) Deletion of Section 6.1(f).
Section 6.1(f) of the Participation Agreement is hereby deleted.
(c) Deletion of Section 6.1(g).
Section 6.1(g) of the Participation Agreement is hereby deleted.
(d) Amendments to Section 6.1.
Section 6.1 of the Participation Agreement is hereby amended to include
the following additional provisions after Section 6.1(h):
(i) Inspection. Within thirty (30) days after the Amendment
Closing Date, each of the Guarantor and the Lessee shall permit, at its
sole cost and expense, (i) any authorized representative designated by
the Administrative Agent or any Lender to visit and inspect any of the
Equipment subject to the Lease, to examine, audit, check and make
copies of its financial and accounting records, books, journals,
orders, receipts and any other correspondence and other data relating
to its business or the transactions contemplated by this Participation
Agreement, and to discuss their affairs, finance and accounts with
their directors, officers, employees and certified public accountants,
and (ii) the Collateral Agent or any of its agents or representatives
to conduct a comprehensive field audit of its books, records,
properties and assets, including without limitation the Equipment
subject to the Lease, all upon reasonable notice, at such reasonable
times during normal business hours.
(j) Reserve Amount. The Reserve Amount shall be maintained
until the earlier to occur of (i) the Maturity Date, and (ii) the Lien
of the Collateral Agent against the Collateral Estate having been fully
discharged in accordance with the terms of the Operative Documents.
(k) Letter of Credit. Throughout the remaining Term, the
Lessee shall provide to the Collateral Agent a Letter of Credit in the
Letter of Credit Amount. The Letter of Credit shall provide that (a)
the issuer of the Letter of Credit shall, at least thirty (30) days
prior to the expiration of the Letter of Credit (and, in the case of
any expiration date scheduled to occur in the twelve (12) month period
preceding the Termination Date (as defined in the Credit Agreement), at
least eighty one (81) days prior to such Termination Date), provide
written notice to the Collateral Agent of the date upon which the
Letter of Credit is set to expire and whether the Letter of Credit has
been renewed; and (b) the Collateral Agent may draw upon the Letter of
Credit in the event of (i) a Lease Event of Default, or (ii) receipt by
the Collateral Agent of notice from the issuer of the Letter of Credit
that the Letter of Credit will expire and has not been renewed. During
the Term, the Lessee shall maintain the Letter of Credit in an amount
equal to the Letter of Credit Amount and the Letter of Credit shall in
all respects be in form and substance satisfactory to the Participants.
Without limiting the Lessor's right to declare a Lease Event of Default
and exercise its remedies pursuant to Section 13 of the Lease, if the
Collateral Agent shall draw on the Letter of Credit the proceeds
thereof shall be immediately applied to the prepayment of the Loans and
Equity Investments without any further notice or action by the Lessor
or the Collateral Agent.
(l) Financial Covenants. The Lessee or Guarantor, as
the case may be, shall comply in all respects with the financial
covenants set forth on Schedule II hereto.
(m) Other Indebtedness. The Lessee and the Guarantor shall not
amend, modify or supplement, or permit any Subsidiary to amend, modify
or supplement (or consent to any amendment, modification or supplement
of), any document, agreement or instrument evidencing the $192,000,000
aggregate principal amount of the Guarantor's Senior Notes, Series C
through I, due 2004-2008 (collectively the "Senior Notes"), the NatCity
Lease Agreement (as defined in the Intercreditor Agreement with respect
to the Credit Agreement), the Receivables Purchase Agreement, the Note
Purchase Agreements or the Credit Agreement (or any replacements,
substitutions or renewals thereof) or pursuant to which any such
Indebtedness is issued where such amendment, modification or supplement
provides for the following or which has any of the following effects:
(i) increases the overall principal amount of
any such Indebtedness or increases the amount of any single scheduled
installment of principal or interest;
(ii) shortens or accelerates the date upon which
any installment of principal or interest becomes due or adds any
additional mandatory redemption provisions;
(iii) shortens the final maturity date of such
Indebtedness or otherwise accelerates the amortization schedule with
respect to such Indebtedness;
(iv) increases the rate of interest accruing on
such Indebtedness;
(v) provides for the payment of additional
fees or increases existing fees;
(vi) amends or modifies any financial or negative
covenant (or covenant which prohibits or restricts the Lessee or the
Guarantor or a Subsidiary of either the Lessee or the Guarantor from
taking certain actions) in a manner which is more onerous or more
restrictive to the Lessee or the Guarantor (or any Subsidiary of either
of them) or which is otherwise materially adverse to the Lessee or the
Guarantor and/or the Participants or, in the case of adding covenants,
which places additional restrictions on the Lessee or the Guarantor (or
a Subsidiary of either of them) or which requires the Lessee or the
Guarantor or any such Subsidiary to comply with more restrictive
covenants than the covenants set forth herein or which requires the
Lessee or the Guarantor to better its financial performance from that
set forth in the financial covenants set forth herein;
(vii) amends, modifies or adds any covenant in a
manner which, when taken as a whole, is materially adverse to the
Lessee or the Guarantor and/or the Participants;
(viii) amends, modifies or supplements any
subordination provisions thereof;
(ix) amends or modifies the limitations on
transfer provided therein; or
(x) amends or modifies the Collateral Documents
(as defined in the Credit Agreement) in any manner adverse to the
Participants.
(e) Deletion of Section 2.3(q).
Section 2.3(q) of the Participation Agreement is hereby deleted.
(f) Amendment to Section 10.1(b).
Section 10.1(b) of the Participation Agreement is hereby amended and
restated to read as follows:
The Lessee shall pay or cause to be paid when due (i) the fees
described in Section 4.5 and in the Syndication Agreement, (ii) all
reasonable out-of-pocket expenses of the Trustee, the Administrative
Agent and the Participants (including reasonable attorneys' fees and
legal expenses of one special counsel representing the Administrative
Agent, the Lessor, and the Lenders, under this Participation Agreement
and the other Operative Documents), (iii) all costs and expenses
(including reasonable attorneys' fees and legal expenses) incurred by
the Administrative Agent, the Trustee, or any Participant in entering
into any future amendments or supplements with respect to any of the
Operative Documents, whether or not such amendments or supplements are
ultimately entered into, or giving of waivers of consents hereto or
thereto, (iv) all costs and expenses (including reasonable attorneys'
fees and legal expenses) incurred by the Administrative Agent, the
Trustee or any Participant in connection with any purchase or sale of
any part of the Equipment by the Lessee or the Lessor, respectively, or
any other Person pursuant to the Lease, (v) all costs and expenses
(including reasonable attorneys' fees and legal expenses) incurred by
the Administrative Agent, the Trustee or any Participant in connection
with any substitution, exchange, purchase or sale of any Equipment by
the Lessee or the Lessor, respectively, or any other Person pursuant to
the Lease, (vi) all costs and expenses (including reasonable attorneys'
fees and legal expenses) incurred by any of the other parties hereto in
respect of (x) the enforcement of any of their rights or remedies
against the Lessee, or the Guarantor under any of the Operative
Documents or (y) the negotiation of any restructuring or "work-out"
with the Lessee, or the Guarantor, whether or not consummated, of any
obligations of the Lessee, or the Guarantor under the Operative
Documents (including the Restructuring Fee and costs associated with
due diligence and perfection with respect to the Collateral Estate),
plus any default premiums charged by the Participants in connection
with such restructuring or "work-out" (it being understood that the
Participants may charge such premium only in the event that a premium
has been charged to the Guarantor by the Bank Group and/or Noteholders
under the Credit Agreement and Note Purchase Agreements on the same
basis), (vii) all fees and expenses (including, without limitation, its
attorneys' fees) incurred by the Participants in connection with the
negotiation and documentation of transferring to a third-party
Custodian the original certificates of title to the Equipment, (viii)
all costs and expenses (including attorneys' fees and legal expenses)
incurred by any Participant, the Trustee, the Collateral Agent or the
Administrative Agent with respect to the establishment and maintenance
of the Reserve Amount with the Collateral Agent designated by the
Participants, (ix) all costs and expenses (including reasonable
attorneys' fees and legal expenses) incurred by any Participant, the
Trustee, the Collateral Agent or the Administrative Agent with respect
to the inspection of the Equipment or operations of the Lessee or
Guarantor in accordance with Section 6.1(j), and (x) all fees, costs
and expenses of the Custodian, the Collateral Agent and any permitted
appraiser.
(g) Amendments to Section 13.
Section 13 of the Participation Agreement is hereby amended to include
an additional provision such that the new Section 13.18 will read as follows:
Appointment of Custodian. The Participants hereby agree to
appoint Custodian to act for them as the custodian in connection with
the transfer of physical possession of the original certificates of
title for each Unit of Equipment subject to the Lease on the transfer
date. All costs and expenses (including attorneys' fees and legal
expenses) incurred by any Participant, the Lessor, the Collateral Agent
or the Administrative Agent with respect to the custodial arrangement
required by this Section 13.18 shall be borne by the Lessee. As soon as
practicable but in any event within sixty (60) days of the Amendment
Closing Date, the Lessee shall have transferred to Custodian physical
possession of the original certificates of title to the Units of
Equipment then subject to the Lease, in accordance with the terms of
Section 9.2(ii) of the Lease and shall have entered into a custodial
arrangement in form and substance satisfactory to the Participants. The
Custodian may be replaced at any time by the Participants in their sole
discretion.
SECTION 2.2 Amendments to Appendix A to the Participation Agreement.
(a) Amendment to Definition of "Applicable Margin".
The definition of "Applicable Margin" in Appendix A to the
Participation Agreement is hereby amended and restated to read as follows:
"Applicable Margin" means, (a) with respect to the Tranche A
and Tranche B Eurodollar Loans, 380 basis points per annum, (b) with
respect to the Eurodollar Equity Investments, 475 basis points per
annum, and (c) with respect to any Base Rate Loan(s)/Equity
Investments, 150 basis points per annum.
(b) Addition of Definition of "Bank Group".
The following definition of the term "Bank Group" is hereby added to
Appendix A to the Participation Agreement:
"Bank Group" means Bank One, Indiana, N.A., as administrative
agent and the institutions from time to time party to the Credit
Agreement.
(c) Addition of Definition of "Credit Agreement".
The following definition of the term "Credit Agreement" is hereby added
to Appendix A to the Participation Agreement:
"Credit Agreement" means that certain Credit Agreement dated
September 30, 1997 among the Guarantor and the Bank Group, as
subsequently amended or restated.
(d) Addition of Definition of "Custodian".
The following definition of the term "Custodian" is hereby added to
Appendix A to the Participation Agreement:
"Custodian" means the financial institution acting as
custodian or any other financial institution appointed by the
Participants in accordance with the terms of Section 13.18 of the
Participation Agreement.
(e) Amendment to Definition of "Initial Letter of Credit."
The definition of "Initial Letter of Cerdit" in Appendix A to the
Participation Agreement is hereby amended and restated to read as follows:
"Initial Letter of Credit" means the Irrevocable Standby
Letter of Credit issued by Bank One, Indiana, N.A. dated December 29,
2000 in the original principal amount of $7,770,000, as such amount has
been subsequently increased to $21,345,000 and the term extended from
time to time.
(f) Amendment to Definition of "Interest Rate".
The definition of "Interest Rate" in Appendix A to the Participation
Agreement is hereby amended and restated to read as follows:
"Interest Rate" means:
(a) with respect to Tranche A Loans (i) that are Eurodollar
Loan(s)/Equity Investments, the Adjusted Eurodollar Rate plus the
Applicable Margin for such Tranche A Loans and (ii) that are Base Rate
Loan(s)/Equity Investments, the Base Rate plus the Applicable Margin;
and
(b) with respect to Tranche B Loans (i) that are Eurodollar
Loan(s)/Equity Investments, the Adjusted Eurodollar Rate plus the
Applicable Margin for such Tranche B Loans and (ii) that are Base Rate
Loan(s)/Equity Investments, the Base Rate plus the Applicable Margin.
(g) Amendment to Definition of "Letter of Credit".
The definition of "Letter of Credit" in Appendix A to the Participation
Agreement is hereby amended and restated to read as follows:
"Letter of Credit" means the Initial Letter of Credit as
amended and extended, or a replacement irrevocable standby letter of
credit from a bank with a credit rating that is satisfactory to the
Lenders, in each case in favor of the Collateral Agent in an amount
equal to the Letter of Credit Amount, and complying with Section 6.1(k)
of the Participation Agreement.
(h) Amendment to Definition of "Letter of Credit Amount".
The definition of "Letter of Credit Amount" in Appendix A to the
Participation Agreement is hereby amended and restated to read as follows:
"Letter of Credit Amount" means an amount equal to
$21,345,000.
(i) Amendment to Definition of "Maturity Date".
The definition of "Maturity Date" in Appendix A to the Participation
Agreement is hereby amended and restated to read as follows:
"Maturity Date" means January 31, 2005.
(j) Addition of Definition of "Master Equipment Lease Agreement."
The following definition of the term "Master Equipment Lease Agreement"
is hereby added to Appendix A to the Participation Agreement:
"Master Equipment Lease Agreement" means that certain Master
Lease Equipment Agreement as of December 30, 1996 between National City
Leasing Corporation and Wabash National Finance Corporation.
(k) Addition of Definition of "Master Equipment Lease Parties."
The following definition of the term "Master Equipment Lease Parties is
hereby added to Appendix A to the Participation Agreement:
"Master Equipment Lease Parties" means the parties to the
Master Equipment Lease Agreement dated as of December 30, 1996.
(l) Addition of Definition of "Noteholder".
The following definition of the term "Noteholder" is hereby added to
Appendix A to the Participation Agreement:
"Noteholder" or "Noteholders" means the Noteholder or
Noteholders under the Note Purchase Agreements.
(m) Addition of Definition of "Note Purchase Agreement".
The following definition of the term "Note Purchase Agreement" is
hereby added to Appendix A to the Participation Agreement:
"Note Purchase Agreement" or "Note Purchase Agreements" means
any of those certain Note Purchase Agreements dated as of December 1,
1996 among the Guarantor and the Noteholders thereunder as subsequently
amended or restated.
(n) Addition of the Definition of "Receivables Group."
The following definition of the term "Receivables Group" is hereby
added to Appendix A to the Participation Agreement:
"Receivables Group" means the parties to the Receivables
Purchase Agreement dated as of April 11, 2002.
(o) Amendment to Definition of "Receivables Purchase Agreement."
The following definition of the term "Receivables Purchase Agreement"
is hereby amended and restated to read as follows:
"Receivables Purchase Agreement" means that certain
Receivables Purchase Agreement dated as of April 11, 2002 among WNC
Receivables, LLC, as Seller, Wabash Financing LLC, as Servicer, WNC
Receivables Management Corporation, as Independent Member, and General
Electric Capital Corporation, as Initial Purchaser and as Agent (all
capitalized terms used in this definition having the meaning set forth
in such Receivables Purchase Agreement).
(p) Addition of the Definition of "Reserve Amount".
The following definition of the term "Reserve Amount" is hereby added
to Appendix A to the Participation Agreement:
"Reserve Amount" means $350,000.00.
(q) Addition of the Definition of "Restructuring Fee".
The following definition of the term "Restructuring Fee" is hereby
added to Appendix A to the Participation Agreement:
"Restructuring Fee" means the fully-earned and non-refundable
one-time fee paid by the Lessee in consideration for restructuring the
transactions contemplated in the Participation Agreement, as follows:
(a) with respect to the Owner Participant, the product of 50 basis
points times the total amount outstanding on the Equity Investments,
and (b) with respect to each Lender, the product of 50 basis points
times the total amount outstanding under its respective Loan.
SECTION 2.3 Amendments to the Lease.
(a) Amendment to Section 1.4.
Section 1.4 of the Lease is hereby amended and restated to read as
follows:
Renewal Terms. So long as no Unmatured Lease Default or Lease
Event of Default shall have occurred and be continuing, Lessee may, as
provided in Section 17.2 hereof, renew this Lease as to all, but not
less than all of the Units for one or more consecutive one year renewal
terms (each one-year (or shorter period) term, a "Renewal Term"),
provided, however, that (i) Lessee only may elect one Renewal Term at a
time and (ii) notwithstanding anything to the contrary contained
herein, Lessee only shall be entitled to elect a total of two (2)
Renewal Terms after the Amendment Closing Date; provided, however, that
in any event the expiration date of such Renewal Terms shall not end
after the Maturity Date. The Renewal Term shall commence upon the day
following the Initial Lease Term Expiration Date or upon the day
following the expiration of the immediately preceding Renewal Term, as
the case may be. The Termination Value payable during the Renewal Term
in respect of any Unit of Equipment suffering an Event of Loss shall be
in an amount as determined on Schedule I to the applicable Lease
Supplements.
(b) Deletion of Article VI.
Article VI of the Lease is hereby deleted.
(c) Amendment to Section 9.2(ii) of the Lease.
Section 9.2(ii) of the Lease is hereby amended by the addition of the
following provision:
As soon as practicable but in any event within sixty (60) days
after the Amendment Closing Date, the Lessee shall transfer possession
of the original certificates of title and current filings and
applications for certificates of title, with respect to each Unit of
Equipment to the Custodian.
(d) Amendment to Section 13.1 of the Lease.
Section 13.1 of the Lease is hereby amended to include the addition of
the following Lease Event Default:
(o) the Lessee shall have failed to comply with its
obligations under Section 13.18 of the Participation Agreement.
(e) Amendment to Section 17.1 of the Lease.
Section 17.1 of the Lease is hereby amended and restated to read as
follows:
SECTION 17.1.Early Termination Option for any or all of the
Equipment.
(a) At any time during the Term of this Lease, and so long as
no Lease Event of Default shall have occurred and be continuing
hereunder, Lessee shall have the option to terminate this Lease with
respect to any or all of the Equipment. To exercise such option, Lessee
shall give Lessor an irrevocable written notice of Lessee's intention
to terminate this Lease with respect to any such Unit or Units of
Equipment, which notice shall (i) state that Lessee desires to
terminate this Lease as to the relevant Unit or Units of Equipment and
refer specifically to this Section 17.1, and (ii) specify the date for
such termination (which, if all Units of Equipment are being
terminated, shall be the next Payment Date after the date of such
notice, but in no event after the Expiration Date, and if less than all
Units of Equipment are being terminated, the date set forth in such
notice (in either case, such date, the "Early Termination Date")). Upon
such election and satisfaction of the terms and conditions set forth in
this Section 17.1, this Lease shall terminate with respect to any such
Unit or Units of Equipment on the Early Termination Date.
Notwithstanding the foregoing, in the event Lessee shall fail to
perform its obligations in accordance with this Section 17.1, this
Lease and each of the obligations and duties of Lessee shall continue
as if such notice shall never have been delivered unless otherwise
agreed to by Lessor and Lessee shall be responsible for all costs and
expenses incurred by Lessor, Owner Participant, Collateral Agent,
Administrative Agent and any Lenders in connection therewith.
(b) For purposes of this Section 17.1, "Early Termination
Payment" means an amount equal to (i) the Termination Value of each
Unit or all Units of Equipment, as the case may be, computed as of the
Early Termination Date, plus (ii) all Basic Rent then due and owing
with respect to each such Unit or all Units of Equipment, as the case
may be, plus (iii) all other Rent due for each such Unit or all Units
of Equipment, as the case may be, on the Early Termination Date, plus
(iv) all accrued and unpaid Rent owing for periods prior to the Early
Termination Date, plus (v) any Break Costs associated with such early
termination.
(c) Upon payment in full of the Early Termination Payment and
satisfaction of all other conditions set forth herein in connection
with a termination of this Lease with respect to all of the Equipment
pursuant to this Section 17.1, Lessor shall convey to Lessee or its
designee its title thereto pursuant to one or more instruments
reasonably satisfactory to the parties thereto but subject to the
following sentence. Lessor's sale of the Equipment hereunder shall be
on an as-is, where-is basis, without any recourse to, or representation
or warranty by, Lessor except as to its ownership thereof and the
absence of any Lien placed on the Equipment by or through Lessor, Owner
Participant, any Lender or any successor thereto. Lessee shall pay, or
reimburse Lessor for the payment of, all applicable Taxes imposed as a
result of such sale, and all fees, costs and expenses of such sale
incurred by Lessor, and any other amounts for which, if not paid,
Lessor will be liable or which, if not paid, would constitute a Lien on
the Equipment and such obligation shall survive the termination of this
Lease.
(d) Upon satisfaction of all other conditions set forth herein
in connection with a termination of this Lease with respect to some but
not all of the Equipment (a "Partial Termination"), Lessee may request
of the Collateral Agent that Custodian promptly provide the
certificates of title to such Equipment to Lessee; provided that Lessee
shall have notified the Collateral Agent, Administrative Agent and
Custodian by Authorized Officer's Certificate of the circumstances of
such Partial Termination. On the last Business Day of each calendar
month, the Lessee shall pay directly to the Collateral Agent an amount
equal to the Early Termination Payment with respect to the Unit or
Units of Equipment terminated (as specified in the notice provided by
the Lessee) in the course of such month. The aggregate value of all
Units of Equipment terminated in any calendar month shall not exceed
the Reserve Amount and all Early Termination Payments shall be applied
to the amounts outstanding under the Loans and the Equity Investments
in inverse order of maturity. Lessor's sale of the Equipment hereunder
shall be on an as-is, where-is basis, without any recourse to, or
representation or warranty by, Lessor except as to its ownership
thereof and the absence of any Lien placed on the Equipment by or
through Lessor, Owner Participant, any Lender or any successor thereto.
Lessee shall pay, or reimburse Lessor for the payment of, all
applicable Taxes imposed as a result of such sale, and all fees, costs
and expenses of such sale incurred by Lessor, and any other amounts for
which, if not paid, Lessor will be liable or which, if not paid, would
constitute a Lien on the Equipment and such obligation shall survive
the termination of this Lease.
ARTICLE III
CLOSING CONDITIONS
SECTION 3.1 Amendment Closing Date. Subject to the terms and conditions set
forth in this Article III, the amendments described herein shall become
effective on April 11, 2002 at the offices of Sidley Xxxxxx Xxxxx & Xxxx,
Chicago, IL (the "Amendment Closing Date").
SECTION 3.2 Closing Conditions. The obligation of each of the Participants to
perform its agreements on the Amendment Closing Date shall be subject to the
fulfillment to the reasonable satisfaction of, or the waiver in writing by, the
Participants of the following conditions precedent on or prior to such Amendment
Closing Date:
(a) Amendments to Credit Agreement and Note Purchase Agreements. On or before
the Amendment Closing Date, the amendments to the Credit Agreement, the
Receivables Purchase Agreement, the Master Equipment Lease Agreement and Note
Purchase Agreements providing for covenants of the Guarantor no more restrictive
than the covenants set forth herein and entered into by the Guarantor with the
Bank Group, the Receivables Group, the Master Equipment Lease Parties and the
Noteholders shall have been duly executed and delivered by the parties thereto
and such amendments shall be in full force and effect and no default shall exist
in the performance by any party of any of its obligations under such agreements.
(b) Restructuring Fee. On or before the Amendment Closing Date, the Lessee shall
have paid to the Participants the Restructuring Fee and, to the extent such
items have been invoiced, the costs and expenses set forth in Sections
10.1(b)(vi)(y), 10.1(b)(vii), 10.1(b)(viii), 10.1(b)(ix) and 10.1(b)(x) of the
Participation Agreement.
(c) Termination and Replacement of Limited Power of Attorney. On or before the
Amendment Closing Date, in consideration of the amendments agreed to herein, the
Limited Power of Attorney granted by the Lessor to the Lessee dated as of
December 29, 2000 shall terminate without any further action and in accordance
with its terms and the Lessor shall grant to the Lessee a replacement power of
attorney substantially in the form of Exhibit B hereto, effective during the
period commencing on the Amendment Closing Date and ending sixty (60) days
thereafter.
(d) Collateral Estate. The interests of the Collateral Agent in and to the
Equipment and the Collateral Estate with respect thereto shall remain secured
for the benefit of the Collateral Agent and protected as against any claims from
the Bank Group, the Receivables Group, the Master Equipment Lease Parties, the
Noteholders, or any other lenders, creditors or noteholders by the Lessee.
(e) Representations and Warranties. On the Amendment Closing Date, with the
exception of those disclosed on Schedule III hereto, the representations and
warranties of the Lessee and the Guarantor set forth in the Operative Documents
(or in certificates delivered pursuant thereto) executed by any thereof shall be
true and correct in all respects as though made on and as of such date, except
to the extent such representations or warranties relate solely to an earlier
date, in which case such representations and warranties shall have been true and
correct in all respects on and as of such earlier date.
(f) Closing Proceedings. All proceedings taken in connection with the Amendment
Closing Date and all documents and instruments to be delivered thereon or
relating thereto shall be reasonably satisfactory to each of the Participants
and its counsel, and each of the Participants and its counsel shall have
received copies of such documents as each of the Participants or its counsel may
reasonably request in connection therewith, all in form and substance reasonably
satisfactory to each of the Participants and its counsel.
(g) Opinions of Counsel. Each of the Participants, the Lessor, the Collateral
Agent and the Administrative Agent shall have received (i) the favorable written
opinions, in form and scope satisfactory to the Participants, of counsel to the
Lessee and the Guarantor confirming the matters set forth in the opinions such
firm delivered to the Bank Group or the Noteholders under the Credit Agreement
or the Note Purchase Agreements to which the Lessee or the Guarantor are a
party, and (ii) the favorable written opinions dated the Amendment Closing Date
and addressed to each of the Participants, the Lessor, the Administrative Agent
and the Collateral Agent from counsel to the Lessee and the Guarantor to the
effect that this Amendment constitutes the legal, valid and binding agreement of
the Lessee and the Guarantor, is enforceable against the Lessee and the
Guarantor and as to such other matters as the Participants, the Lessor, the
Administrative Agent and the Collateral Agent may require.
(h) Preliminary Desktop Appraisal. The Collateral Agent shall have been
indemnified in full for the costs and expenses incurred by it in connection
with the preliminary desktop appraisal performed by Xxxxxx & Xxxxxx, Inc.
(i) Establishment of Account for Reserve Amount. On or before the Amendment
Closing Date, the Lessee shall have established an account with the Collateral
Agent and deposited therein an amount equal to the Reserve Amount as security
for the benefit of the Collateral Agent.
(j) Fees and Expenses. The Lessee shall have paid all the fees, costs and
expenses incurred by Mayer, Brown, Xxxx & Maw, as counsel to the Participants,
the Collateral Agent and the Administrative Agent hereunder, in connection with
the execution and delivery of this Amendment.
ARTICLE IV
MISCELLANEOUS PROVISIONS
SECTION 4.1 Ratification of and References to the Operative Documents. This
Amendment shall be deemed to be an amendment to the Participation Agreement and
the Lease and as such agreements are amended hereby, are hereby ratified,
approved and confirmed in each and every respect. All references to any such
Operative Document in any other document, instrument, agreement or writing shall
hereafter be deemed to refer to such Operative Document as amended hereby.
SECTION 4.2 Headings, Etc. The Table of Contents and headings of the various
Articles, Sections and clauses of this Amendment are for convenience of
reference only and shall not modify, define, expand or limit any of the terms or
provisions hereof.
SECTION 4.3 Counterparts. This Amendment may be executed by the parties hereto
in separate counterparts, each of which when so executed and delivered shall be
deemed to be an original, but all such counterparts shall together constitute
but one and the same instrument.
SECTION 4.4 Governing Law; Entire Agreement. THIS AMENDMENT AND EACH OTHER
OPERATIVE DOCUMENT EXECUTED IN CONNECTION HEREWITH SHALL EACH BE DEEMED TO BE A
CONTRACT MADE UNDER AND GOVERNED BY THE LAW OF THE COMMONWEALTH OF MASSACHUSETTS
(EXCLUDING ANY CONFLICT-OF-LAW OR CHOICE-OF-LAW RULES WHICH MIGHT LEAD TO THE
APPLICATION OF THE INTERNAL LAWS OF ANY OTHER JURISDICTION) AS TO ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE. This Amendment and the other Operative
Documents constitute the entire understanding among the parties hereto with
respect to the subject matter hereof and supersede any prior agreements, written
or oral, with respect thereto.
SECTION 4.5 Instructions to the Trustee. The undersigned Participants,
Collateral Agent and Administrative Agent hereby authorize and direct the
Trustee to enter into, execute and deliver this Amendment and perform all of the
obligations of the Trustee and Lessor hereunder.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their respective officers thereunto duly authorized as of the date
and year first above written.
APEX TRAILER LEASING & RENTALS, L.P.,
as Lessee
By: Wabash National Corporation,
General Partner
By:_______________________________________
Name:
Title:
WABASH NATIONAL CORPORATION,
as Guarantor
By:________________________________________
Name:
Title:
WABASH STATUTORY TRUST - 2000
By: STATE STREET BANK AND TRUST
COMPANY OF CONNECTICUT, NATIONAL ASSOCIATION,
not in its individual capacity but solely in
its capacity as Trustee
By:_________________________________________
Name:
Title:
STATE STREET BANK AND TRUST COMPANY OF
CONNECTICUT, NATIONAL ASSOCIATION, not in
its individual capacity, except as
provided herein, but solely as Trustee
By:_________________________________________
Name:
Title:
U.S. BANK, NATIONAL ASSOCIATION (formerly
known as FIRSTAR BANK, N.A.) as Tranche
A Lender
By:_________________________________________
Name:
Title:
GENERAL ELECTRIC CAPITAL CORPORATION,
as Tranche A Lender
By:_________________________________________
Name:
Title:
NATIONAL CITY BANK OF INDIANA,
as Tranche A Lender
By:_________________________________________
Name:
Title:
FLEET CAPITAL CORPORATION,
as Tranche B Lender
By:_________________________________________
Name:
Title:
FLEET CAPITAL CORPORATION,
as Owner Participant
By:_________________________________________
Name:
Title:
FLEET CAPITAL CORPORATION,
as Administrative Agent
By:_________________________________________
Name:
Title:
FLEET CAPITAL CORPORATION,
as Collateral Agent
By:_________________________________________
Name:
Title:
SCHEDULE I
TO MASTER AMENDMENT AGREEMENT
INSTITUTIONS PARTICIPATING AS TRANCHE A LENDERS
TRANCHE A LENDERS:
-----------------
U.S. Bank, National Association
(formerly known as Firstar Bank, N.A.)
7th & Washington, 0xx Xxxxx
Xx. Xxxxx, XX 00000
Attention: Xxxx X. Xxxxxxx
Vice President
Phone: (000) 000-0000
Fax: (000) 000-0000
E-mail: xxxx.x.xxxxxxx@xxxxxx.xxx
National City Bank of Indiana
Xxx Xxxxxxxx Xxxx Xxxxxx
Xxxxx 000X
Xxxxxxxxxxxx, XX 00000
Attention: Xxx Xxxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
Email: xxx.xxxxx@xxxxxxxx-xxxx.xxx
General Electrical Capital Corporation
000 Xxxxxxxxxx Xxxxxx
Xxxxx 000
Xxxxxx, XX 00000
Attention: Xxxxx Xxxxxx
Phone: 000-000-0000
Fax: 000-000-0000
Email: xxxxx.xxxxxx@xxxxxxxxx.xxx
SCHEDULE II
TO MASTER AMENDMENT AGREEMENT
FINANCIAL COVENANTS
For purposes of this Schedule II to the Master Amendment Agreement, capitalized
terms used herein and not otherwise defined shall have (a) the meanings set
forth in Appendix 1 to this Schedule II, or (b) to the extent such term is not
defined in such Appendix 1, the meanings set forth in Appendix A to the
Participation Agreement.
Financial Covenants. The Lessee or the Guarantor, as the case may be, shall
comply with the following:
1. Minimum Consolidated Tax Adjusted Equity. If the Guarantor
shall have reported a cumulative tax benefit as of the last
day of any fiscal quarter specified below, the Guarantor
shall, as of the last day of such fiscal quarter, maintain
Consolidated Tax Adjusted Equity at an amount not less than
the applicable "Minimum Consolidated Tax Adjusted Equity"
specified below:
Fiscal Quarter Ending Minimum Consolidated Tax Adjusted
Equity
March 31, 2003 $99,064,000
June 30, 2003 $100,681,000
September 30, 2003 $103,283,000
December 31, 2003 and each fiscal $96,504,000
quarter thereafter
2. Minimum Consolidated Equity. If the Guarantor shall not have
reported a cumulative tax benefit as of the last day of any
fiscal quarter specified below, the Guarantor shall, as of the
last day of such fiscal quarter, maintain Consolidated Equity
at an amount not less than the applicable "Minimum
Consolidated Equity" specified below:
Fiscal Quarter Ending Minimum Consolidated Equity
March 31, 2003 $87,882,000
June 30, 2003 $90,461,000
September 30, 2003 $94,751,000
December 31, 2003 and each fiscal $84,077,000
quarter thereafter
3. Maximum Leverage Valuation Ratio. The Guarantor shall not permit, as of
the last day of each of the fiscal quarters specified below, the Leverage
Valuation Ratio to exceed the applicable "Maximum Leverage Valuation Ratio"
specified below:
Fiscal Quarter Ending Maximum Leverage Valuation Ratio
June 30, 2002 0.95 to 1
September 30, 2002 0.95 to 1
December 31, 2002 0.95 to 1
March 31, 2003 0.85 to 1
June 30, 2003 0.80 to 1
September 30, 2003 0.80 to 1
December 31, 2003 and each fiscal 0.75 to 1
quarter thereafter
4. Minimum Consolidated EBITDA.
(i) The Guarantor shall, as of the last day of each of the
fiscal quarters of the Guarantor occurring in calendar year
2002, maintain Consolidated EBITDA for the cumulative period
commencing on April 1, 2002 and ending on the last day of such
fiscal quarter, at an amount not less than $(20,000,000).
(ii) The Guarantor shall, as of the last day of the calendar
months specified below, maintain Consolidated EBITDA at an
amount not less than the applicable "Minimum Rolling 12 Month
Consolidated EBITDA" specified below for the period of 12
consecutive calendar months then ending:
Minimum Rolling 12 Month Consolidated
Month Ending EBITDA
January 31, 2003 $36,135,000
February 28, 2003 $36,620,000
March 31, 2003 $39,301,000
April 30, 2003 $40,541,000
May 31, 2003 $41,276,000
June 30, 2003 $42,192,000
July 31, 2003 $42,877,000
August 31, 2003 $43,422,000
September 30, 2003 $43,784,000
October 31, 2003 $43,941,000
November 30, 2003 $43,828,000
December 31, 2003 $43,539,000
January 31, 2004 $42,539,000
and each calendar month
thereafter
5. Minimum Interest Coverage Ratio. The Guarantor shall not
permit the Interest Coverage Ratio as of the last day of each
fiscal quarter of the Guarantor (commencing with the fiscal
quarter ending on or about March 31, 2003), for the period of
four consecutive fiscal quarters then ending, to be less than
1.25 to 1.
6. Maximum Capital Expenditures. The Lessee and the Guarantor will not, and
will not permit any of their respective Subsidiaries to, expend for
Capital Expenditures during any fiscal year of the Guarantor in excess
of $6,000,000 in the aggregate for each of the Lessee, the Guarantor
and such Subsidiaries.
7. Maximum Finance Contracts. The Lessee and the Guarantor will
not, and will not permit any of their respective Subsidiaries
to, enter into any new Finance Contract if and to the extent
that the sum of such Finance Contract (a) when added to the
aggregate amount of all Finance Contracts entered into by the
Lessee or the Guarantor or such Subsidiaries during the twelve
(12) month period that commences on the Amendment Closing Date
exceeds $5,000,000 or (b) when added to the aggregate amount
of all Finance Contracts entered into by the Lessee or the
Guarantor or such Subsidiaries during the twelve (12) month
period that commences on the first (1st) anniversary of the
Amendment Closing Date exceeds $5,000,000.
APPENDIX 1
TO SCHEDULE II TO MASTER AMENDMENT AGREEMENT
DEFINITIONS
"Agreement Accounting Principles" means generally accepted accounting
principles as in effect from time to time in the United States, applied in a
manner consistent with those used in preparing the financial statements referred
to in Section 6.1(e) of the Participation Agreement.
"Capital Expenditures" means, for any period, the aggregate of all
expenditures (whether paid in cash or accrued as liabilities and including
Capitalized Leases and purchase money Indebtedness to the extent permitted
hereunder) by the Lessee, the Guarantor and their Subsidiaries during that
period that, in conformity with Agreement Accounting Principles, are required to
be included in or reflected by the property, plant, equipment or similar fixed
asset accounts reflected in the consolidated balance sheet of the Lessee, the
Guarantor and their Subsidiaries.
"Capitalized Lease" of a Person (as defined herein) means any lease of
property by such Person as lessee which would be capitalized on a balance sheet
of such Person prepared in accordance with Agreement Accounting Principles.
"Capitalized Lease Obligations" of a Person (as defined herein) means
the amount of the obligations of such Person under Capitalized Leases which
would be capitalized on a balance sheet of such Person prepared in accordance
with Agreement Accounting Principles.
"Cash Equivalents" means (i) marketable direct obligations issued or
unconditionally guaranteed by the government of the United States; (ii) domestic
and Eurodollar certificates of deposit and time deposits, bankers' acceptances
and floating rate certificates of deposit issued by any commercial bank
organized under the laws of the United States, any state thereof, the District
of Columbia, or its branches or agencies and having capital and surplus in an
aggregate amount not less than $500,000,000 (fully protected against currency
fluctuations for any such deposits with a term of more than ten (10) days);
(iii) shares of money market, mutual or similar funds having net assets in
excess of $500,000,000 maturing or being due or payable in full not more than
one hundred eighty (180) days after the Guarantor's acquisition thereof and the
investments of which are limited to investment grade securities (i.e.,
securities rated at least Baa by Xxxxx'x Investors Service, Inc. or at least BBB
by Standard & Poor's Ratings Group) and (iv) commercial paper of United States
banks and bank holding companies and their subsidiaries and United States
finance, commercial, industrial or utility companies which, at the time of
acquisition, are rated A-1 (or better) by Standard & Poor's Ratings Group or P-1
(or better) by Xxxxx'x Investors Service, Inc.; provided that the maturities of
such Cash Equivalents shall not exceed 365 days.
"Consolidated EBITDA" means, for any period, on a consolidated basis
for the Guarantor and its consolidated Subsidiaries, the sum of the amounts for
such period, without duplication, of (i) Consolidated Operating Income, plus
(ii) charges against income for foreign taxes and U.S. income taxes to the
extent deducted in computing Consolidated Operating Income, plus (iii) Interest
Expense to the extent deducted in computing Consolidated Operating Income, plus
(iv) depreciation expense to the extent deducted in computing Consolidated
Operating Income, plus (v) amortization expense, including, without limitation,
amortization of goodwill and other intangible assets to the extent deducted in
computing Consolidated Operating Income, plus (vi) other non-cash charges (in an
aggregate amount not in excess of $15,000,000 during any fiscal year of the
Borrower) in accordance with Agreement Accounting Principles to the extent
deducted in computing Consolidated Operating Income, minus (x) the total
interest income of the Borrower and its Subsidiaries to the extent included in
computing Consolidated Operating Income minus (y) the total tax benefit reported
by the Borrower and its Subsidiaries to the extent included in computing
Consolidated Operating Income.
"Consolidated Equity" means as of the date of any determination
thereof, the total stockholders' equity of the Lessee, the Guarantor and their
Subsidiaries on a consolidated basis, all as determined in accordance with
Agreement Accounting Principles.
"Consolidated Operating Income" means, with reference to any period,
the net operating income (or loss) of the Lessee, the Guarantor and their
Subsidiaries for such period (taken as a cumulative whole on a consolidated
basis) including without limitation all restructuring expenses for such period
(exclusive of "other income/expenses" as reflected in the Guarantor's
consolidated statement of income of the Lessee, the Guarantor and their
Subsidiaries for such period and related to non-operating and non-recurring
income and expenses), as determined in accordance with Agreement Accounting
Principles, after eliminating all offsetting debits and credits between the
Lessee, the Guarantor and their Subsidiaries and all other items required to be
eliminated in the course of the preparation of consolidated financial statements
of the Lessee, the Guarantor and their Subsidiaries in accordance with Agreement
Accounting Principles.
"Consolidated Tax Adjusted Equity" means as of the date of any
determination thereof, Consolidated Equity plus the cumulative federal, state
and local income tax benefit reported by the Guarantor in accordance with
Agreement Accounting Principles.
"Consolidated Total Assets" means as of the date of any determination
thereof, total assets of the Guarantor and its Subsidiaries determined on a
consolidated basis in accordance with Agreement Accounting Principles.
"Finance Contracts" means any chattel paper originated by the Lessee,
the Guarantor or any of their Subsidiaries pursuant to a bona fide sale in the
ordinary course of business with a customer or any Subsidiary.
"Indebtedness" means, with respect to any Person (as defined in this
Appendix A), without duplication,
(a) its liabilities for borrowed money, including reimbursement
obligations (contingent or otherwise) with respect to letters
of credit;
(b) its liabilities for the deferred purchase price of
property acquired by such Person (excluding accounts payable arising in
the ordinary course of business but including, without limitation, all
liabilities created or arising under any conditional sale or other
title retention agreement with respect to any such property);
(c) its Capitalized Lease Obligations;
(d) all liabilities for borrowed money secured by any Lien
with respect to any property owned by such Person (whether or not it
has assumed or otherwise become liable for such liabilities);
(e) its Off-Balance Sheet Liabilities (as defined in the
Credit Agreement);
(f) its Receivables Facility Attributed Indebtedness; and
(g) any Contingent Obligation (as defined in the Credit
Agreement)of such Person with respect to liabilities of a type
described in any of clauses (a) through (f) hereof.
Indebtedness of any Person shall include all obligations of such Person of the
character described in clauses (a) through (g) to the extent such Person remains
legally liable in respect thereof notwithstanding that any such obligation is
deemed to be extinguished under Agreement Accounting Principles. In no event
shall Indebtedness include Unfunded Liabilities (as defined in the Credit
Agreement) of any Plan of the Guarantor and its Subsidiaries, which amount, as
of December 31, 2001, was zero.
"Interest Coverage Ratio" means, as of any date the same is to be
determined, the ratio of (i) Consolidated EBITDA as of such date for (A) in the
case of calculating Consolidated EBITDA for each relevant month in the
Guarantor's fiscal year ending on or about December 31, 2002, the cumulative
period of months ending on and after April 30, 2002 and (B) in the case of
calculating Consolidated EBITDA for each month thereafter, the period of four
consecutive fiscal quarters then ending to (ii) Interest Expense during the same
applicable periods.
"Interest Expense" means, for any period, the total interest expense of
the Lessee, the Guarantor and their consolidated Subsidiaries, whether paid or
accrued (including the total interest expense under a Permitted Receivables
Transfer), including interest expense not payable in cash (including
amortization or write-off of debt discount and debt issuance costs and
commissions and discounts and other fees and charges associated with
Indebtedness (including the Obligations)), all as determined in conformity with
Agreement Accounting Principles.
"Leverage Valuation Ratio" means, as of any date the same is to be
determined, the ratio of (i) the sum of the aggregate outstanding principal
amount of the Obligations (excluding L/C Obligations, as such term is defined in
the Credit Agreement) and the Indebtedness under the Note Purchase Agreements to
(ii) Consolidated Total Assets only to the extent consisting of cash and Cash
Equivalents, net inventory, net prepaid and other expenses and net property,
plant and equipment as of such date, in all cases as determined in accordance
with Agreement Accounting Principles.
"Obligations" means, for purposes of this Schedule II to the Master
Amendment Agreement, all the Loans (as defined in the Credit Agreement),
advances, debts, liabilities, obligations, covenants and duties owing by the
Guarantor to the Administrative Agent (as defined in the Credit Agreement), any
Lender (as defined in the Credit Agreement), the Issuing Lender (as defined in
the Credit Agreement), any Affiliate (as defined in the Credit Agreement) of any
of the foregoing or any Indemnitee (as defined in the Credit Agreement), of any
kind or nature, present or future, arising under the Credit Agreement, the Notes
(as defined in the Credit Agreement), the PIK Notes (as defined in the Credit
Agreement) or any other Loan Document (as defined in the Credit Agreement),
whether or not evidenced by any note, guaranty or other instrument, whether or
not for the payment of money, whether arising by reason of an extension of
credit, loan, guaranty, indemnification, or in any other manner, whether direct
or indirect (including those acquired by assignment), absolute or contingent,
due or to become due, now existing or hereafter arising and however acquired.
The term includes, without limitation, all interest, charges, expenses, fees,
attorneys' fees and disbursements, paralegals' fees (in each case whether or not
allowed), and any other sum chargeable to the Guarantor under the Credit
Agreement or any other Loan Document (as defined in the Credit Agreement).
"Permitted Receivables Transfer" means (i) a sale or other transfer by
any Originator to WNC Receivables, LLC, a Delaware limited liability company and
a wholly-owned Subsidiary of the Guarantor ("WNC") of "Receivables," and
"Collections" under, and as such terms are defined in, the Receivables Sale
Agreement, in accordance with the terms of the Receivables Sale Agreement,
and/or (ii) a sale by WNC to purchasers of "Purchaser Interests" under, and as
such term is defined in, the Receivables Purchase Agreement, in accordance with
the terms of the Receivables Purchase Agreement.
"Person" means, for the purposes of this Schedule II to the Master
Amendment Agreement, any individual, corporation, firm, enterprise, partnership,
trust, incorporated or unincorporated association, joint venture, joint stock
company, limited liability company or other entity of any kind, or any
government or political subdivision or any agency, department or instrumentality
thereof.
"Receivables Facility Attributed Indebtedness" means the amount of
obligations outstanding under a receivables purchase facility on any date of
determination that would be characterized as principal if such facility were
structured as a secured lending transaction rather than as a purchase.
SCHEDULE III
TO MASTER AMENDMENT AGREEMENT
EXCEPTED REPRESENTATIONS AND WARRANTIES
The following representation set forth is Section 9.1(e) of the
Participation Agreement is excluded from Section 3.2(e) of the Master Amendment
Agreement:
Material Adverse Change. There has been no change since September
30,2000 in the business, Property, financial condition or results of
operations of the Guarantor and its Subsidiaries which could reasonably
be expected to have a Material Adverse Effect other than certain
restructuring charges to be taken in the fourth calendar quarter of
2000 up to $50,000,000 on a pre-tax basis.
EXHIBIT A
TO MASTER AMENDMENT AGREEMENT
FORM OF AUTHORIZED OFFICER'S CERTIFICATE
OF COMPLIANCE
To: The Participants, Lessor and Collateral Agent to the
Master Amendment Agreement Described Below
This Compliance Certificate is furnished pursuant to that
certain Master Amendment Agreement dated as of April 11, 2002 (as amended,
modified, renewed or extended from time to time, the "Agreement") among APEX
TRAILER LEASING & RENTALS, L.P., a Delaware limited partnership, as the Lessee
(in such capacity, together with its permitted successors, the "Lessee"); WABASH
NATIONAL CORPORATION, a Delaware corporation, as guarantor (the "Guarantor");
WABASH STATUTORY TRUST - 2000, a Connecticut statutory trust, as Lessor
(together with its permitted successors and assigns, the "Lessor"); STATE STREET
BANK AND TRUST COMPANY OF CONNECTICUT, NATIONAL ASSOCIATION, not in its
individual capacity, except as set forth therein, but solely as Trustee (the
"Trustee" and in its individual capacity, the "Trust Company"); the Institutions
indicated in Schedule I thereto as "Tranche A Lenders" (each, together with its
permitted successors and assigns, a "Tranche A Lender," and together with the
other Tranche A Lenders, the "Tranche A Lenders"), FLEET CAPITAL CORPORATION, a
Rhode Island corporation ("Fleet Capital"), as the Tranche B Lender (in such
capacity, together with its permitted successors and assigns, the "Tranche B
Lender", and together with the Tranche A Lenders, the "Lenders"); FLEET CAPITAL,
as the Owner Participant (in such capacity, together with its permitted
successors and permitted assigns, the "Owner Participant", and together with the
Lenders, the "Participants"); FLEET CAPITAL, as administrative agent for the
Lenders (in such capacity, together with its permitted successors and assigns,
the "Administrative Agent"); and FLEET CAPITAL, as collateral agent for the
Lenders (in such capacity, together with its permitted successors and assigns,
the "Collateral Agent"). Unless otherwise defined herein, capitalized terms used
in this Compliance Certificate have the meanings ascribed thereto in the
Agreement.
THE UNDERSIGNED HEREBY CERTIFIES THAT:
1. I am the duly elected ______________ of the
[Lessee] [Guarantor] and the [Chief Financial Officer] [Treasurer];
2. I have reviewed the terms of the Agreement and I have made,
or have caused to be made under my supervision, a detailed review of the
transactions and conditions of the [Lessee] [Guarantor] and its Subsidiaries
during the accounting period covered by the attached financial statements;
3. The examinations described in paragraph 2 did not disclose,
and I have no knowledge of, the existence of any condition or event which
constitutes a Lease Event of Default or Unmatured Lease Default during or at the
end of the accounting period covered by the attached financial statements or as
of the date of this Certificate, except as set forth below; and
4. Schedule I and Schedule II attached hereto set forth
financial data and computations evidencing the [Lessee] [Guarantor]'s compliance
with certain covenants of the Agreement and the Excess Cash Flow during the
accounting period covered by the attached financial statements, all of which
data and computations are true, complete and correct.
Described below are the exceptions, if any, to paragraph 3,
listing, in detail, the nature of the condition or event, the period during
which it has existed and the action which the [Lessee] [Guarantor] has taken, is
taking, or proposes to take with respect to each such condition or event:
The foregoing certifications, together with the computations
set forth in Schedule I and Schedule II hereto and the financial statements
delivered with this Certificate in support hereof, are made and delivered this
_____ day of __________, ____.
--------------------------------
[Insert Name of Officer]
[Wabash National Corporation] [Apex Trailer Leasing & Rentals, L.P.]
Quarterly Compliance Certificate Worksheet
COMPLIANCE CERTIFICATE
Quarterly Schedule of Compliance as of _______________, 2002
(Dollars in thousands)
A. EXCESS CASH FLOW
1. Actual Amount:
a. of Cash & Cash Equivalents $ -
a. Remaining in Super Revolver $ -
b. Remaining in A/R Facility $ -
-----------
c. Total Available Liquidity (a+b+c) $ -
2. Projected Amount:
a. Liquidity Amount (Sec. 1.1.17) $ -
b. Cash Basket $ 5,000
-----------
c. Total Projected Liquidity Amount (a+b) $ 5,000
3. Cash Flow Available for Debt Paydown (1d - 2c) $ (5,000)
B. MAXIMUM LEVERAGE VALUATION RATIO
1. Actual Amount:
a. Term Debt (Notes & Bank Debt)
b. Revolver (Super Revolver) -----------
c. Total Debt (a+b) $ -
d. Cash and Cash Equivalents
e. Net Inventory
f. Net Prepaid and Other Expenses
g. Net PP&E -----------
h. Total Assets (d+e+f+g) $ -
i. Leveraged Ratio (c/h) 0.00x
2. Minimum Required Amount x
C. MAXIMUM CAPITAL EXPENDITURES
1. Actual Amount:
a. Capital Expenditures (Year-to-Date) $ -
2. Maximum Annual Allowed Amount $ 6,000
D. MAXIMUM FINANCE CONTRACTS
1. Actual Amount:
a. Finance Contracts (Year-To-Date) $ -
2. Maximum Annual Allowed Amount $ 5,000
[Wabash National Corporation] [Apex Trailer Leasing & Rentals, L.P.]
Monthly Compliance Certificate Worksheet
COMPLIANCE CERTIFICATE
Monthly Schedule of Compliance as of _________, 2003
(Dollars in thousands)
A. MINIMUM CONSOLIDATED LAST TWELVE MONTH ("LTM") EBITDA
1. Actual Amount:
a. Consolidated Operating Income $ -
b. Foreign and Domestic Taxes Deducted in Operating Income $ -
c. Interest Expense Deducted in Operating Income $ -
d. Other Non-Cash Charges Deducted in Operating Income $ -
Aggregate Annual Amount not in Excess of $15,000,000)
e. Depreciation Expense Deducted in Operating Income $ -
f. Amortization Expense Deducted in Operating Income $ -
g. Interest Income Included in Operating Income $ -
h. Total Tax Benefit Included in Operating Income $ -
i. Consolidated EBITDA (a+b+c+d+e+f-g-h) $ -
2. Minimum Required Amount $ -
[Wabash National Corporation] [Apex Trailer Leasing & Rentals, L.P.]
Quarterly Compliance Certificate Worksheet
COMPLIANCE CERTIFICATE
Quarterly Schedule of Compliance as of _________, 2003
(Dollars in thousands)
A. EXCESS CASH FLOW
1. Actual Amount:
a. Sum of Cash & Cash Equivalents $ -
b. Availability Remaining in Super Revolver $ -
c. Availability Remaining in A/R Facility $ -
-----------
d. Total Available Liquidity (a+b+c) $ -
2. Projected Amount:
a. Projected Liquidity Amount (Sec. 1.1.17) $ -
b. Additional Cash Basket $ 5,000
-----------
c. Total Projected Liquidity Amount (a+b) $ 5,000
3. Excess Cash Flow Available for Debt Paydown (1d - 2c) $ (5,000)
B. MINIMUM TAX ADJUSTED CONSOLIDATED EQUITY
1. Actual Amount:
a. Consolidated Equity $ -
b. Deferred Income Taxes $ -
-----------
c. Consolidated Tax Adjusted Equity(a-b) $ -
2. Minimum Required Amount $ -
C. MINIMUM CONSOLIDATED EQUITY
1. Actual Amount:
a. Consolidated Equity $ -
b. Minimum Required Amount $ -
D. MAXIMUM LEVERAGE VALUATION RATIO
1. Actual Amount:
a. Term Debt (Notes & Bank Debt) $ -
b. Revolver (Super Revolver) $ -
-----------
c. Total Debt (a+b) $ -
d. Cash and Cash Equivalents $ -
e. Net Inventory $ -
f. Net Prepaid and Other Expenses $ -
g. Net PP&E $ -
-----------
h. Total Assets (d+e+f+g) $ -
i. Leverage Ratio (c/h) x
-----
2. Minimum Required Amount x
-----
E. MINIMUM INTEREST COVERAGE RATIO
1. Actual Amount:
a. Cumulative Consolidated Operating Income $ -
b. Cumulative Depreciation Expense $ -
c. Cumulative Amortization Expense $ -
-----------
d. Cumulative Consolidated EBITDA (a+b+c) $ -
e. Cumulative Interest Expense $ -
f. Interest Coverage Ratio (d/e) x
-----
2. Minimum Allowed Amount -
F. MAXIMUM CAPITAL EXPENDITURES
1. Actual Amount:
a. Capital Expenditures (Year-to-Date) $ -
2. Maximum Annual Allowed Amount $ 6,000
G. MAXIMUM FINANCE CONTRACTS
1. Actual Amount:
a. Finance Contracts (Year-To-Date) $ -
2. Maximum Annual Allowed Amount $ 5,000
A. MAXIMUM OTHER UNSECURED INDEBTEDNESS
1. Actual Amount $_____________
2. Maximum Permitted Amount: $3,000,000
B. SALES OF ASSETS
1. Actual Amount:
a. Total amount of sales of assets in current fiscal
year to date (See Schedule II for detail) $_____________
-----------
2. Maximum Permitted Amount: $5,000,000
C. SALES OF ASSETS BY APEX TRAILER LEASING & RENTALS, L.P. ("APEX")
1. Actual Amount:
a. Total amount of sales of assets in current
fiscal year to date (See Schedule II for detail) $_____________
-----------
2. Maximum Permitted Amount:
a. Total Assets of APEX at end of prior fiscal year $_____________
b. Intangible assets -_____________
c. Tangible Assets of APEX at end of prior
fiscal year =$____________
x 0.50
d. Maximum Permitted Amount =$____________
D. INVESTMENTS
For each new Investment pursuant to Section 6.3(D)(vii) of the Credit
Agreement during the most recent fiscal quarter covered by this
Certificate, complete the following:
1. Date and brief description of nature of new Investment:
============================================
2. Actual Amount:
a. Amount of new Investment $_____________
b. Amount of existing Investments +_____________
c. Total Investments =$____________
3. Maximum Permitted Amount: $5,000,000
E. LEASES
1. Actual Amount of Leases: $__________
2. Maximum Permitted Amount: $5,000,000
SCHEDULE II TO COMPLIANCE CERTIFICATE
Schedule of Compliance as of __________, ____
(Dollars in Thousands)
A. Sales of Assets
[List separate sales and amounts] $_____________
==============
==============
Total $_____________
EXHIBIT B
TO MASTER AMENDMENT AGREEMENT
FORM OF POWER OF ATTORNEY
Reference is made to the Master Amendment Agreement, dated as of April
11, 2002 (the "Master Amendment") among APEX TRAILER LEASING & RENTALS, L.P., a
Delaware limited partnership, as the Lessee (in such capacity, together with its
permitted successors, the "Lessee"); WABASH NATIONAL CORPORATION, a Delaware
corporation, as guarantor (the "Guarantor"); WABASH STATUTORY TRUST - 2000, a
Connecticut statutory trust, as Lessor (together with its permitted successors
and assigns, the "Lessor"); STATE STREET BANK AND TRUST COMPANY OF CONNECTICUT,
NATIONAL ASSOCIATION, not in its individual capacity, except as set forth
therein, but solely as Trustee (the "Trustee" and in its individual capacity,
the "Trust Company"); the Institutions indicated in Schedule I to the Master
Amendment as "Tranche A Lenders" (each, together with its permitted successors
and assigns, a "Tranche A Lender," and together with the other Tranche A
Lenders, the "Tranche A Lenders"), FLEET CAPITAL CORPORATION, a Rhode Island
corporation ("Fleet Capital"), as the Tranche B Lender, in such capacity,
together with its permitted successors and assigns, the "Tranche B Lender", and
together with the Tranche A Lenders, the "Lenders"); FLEET CAPITAL, as the Owner
Participant (in such capacity, together with its permitted successors and
permitted assigns, the "Owner Participant", and together with the Lenders, the
"Participants"); FLEET CAPITAL, as administrative agent for the Lenders (in such
capacity, together with its permitted successors and assigns, the
"Administrative Agent"); and FLEET CAPITAL, as collateral agent for the Lenders
(in such capacity, together with its permitted successors and assigns, the
"Collateral Agent"), and the Amended and Restated Equipment Lease, dated as of
March 30, 2001 (the "Lease") between Lessor and Lessee pursuant to which Lessor
has leased to Lessee certain Units of Equipment described in each Lease
Supplement and consisting of vehicles subject to certificates of title
registered in various states of the United States. Terms not otherwise defined
herein shall have the meanings set forth in either (a) Appendix A to the Amended
and Restated Participation Agreement, dated as of March 30, 2001 (the
"Participation Agreement") among the Lessor, the Lessee, the Trustee, the
Lenders, the Owner Participant, the Collateral Agent and the Administrative
Agent, or (b) the Master Amendment.
Pursuant to Section 9.2 of the Lease, Lessee is required to deliver to
the Collateral Agent, any and all necessary motor vehicle certificates of title
with lien notations thereon with respect to each Unit of Equipment. In order to
facilitate the sale of the Units of Equipment pursuant to the terms and
conditions of the Lease, Collateral Agent is entering into this Limited Power of
Attorney upon the terms and conditions set forth herein. Notwithstanding
anything to the contrary contained in the Lease, until the earlier to occur of
(i) a Lease Event of Default or (ii) a material adverse change in the business,
financial condition or results of operations of Guarantor and its Subsidiaries
taken as a whole in the reasonable discretion of Collateral Agent, the
undersigned Fleet Capital Corporation, as Collateral Agent hereby grants to the
President, the Treasurer and the Corporate Controller from time to time of
Wabash National Corporation, solely in its capacity as the general party of Apex
Trailer Leasing & Rentals L.P., as Lessee, a Limited Power of Attorney to act as
agent on behalf of the Lessor and Collateral Agent regarding procurement of and
changes to certificates of title (including the notation of the lienholder
thereon) with respect to the Units of Equipment in connection with all sales and
other dispositions thereof expressly permitted and in accordance with the
provisions of the Lease for a term not to exceed sixty (60) days after the
Amendment Closing Date. Upon the earlier to occur of (a) the occurrence of an
event described in clauses (i) and (ii) above, and (b) the expiration of the
sixty (60) day term of this Limited Power of Attorney, this Limited Power of
Attorney shall immediately cease and Lessee shall deliver or cause to be
delivered to the Custodian each and every original certificate of title with
respect to all Units of Equipment then subject to the Lease to the address of
the Custodian without any further act or deed by Collateral Agent, Custodian or
Lessor.
IN WITNESS WHEREOF, the undersigned has executed this Limited Power of
Attorney as of April 11, 2002.
FLEET CAPITAL CORPORATION
By: -----------------------------------
Name: Xxxxxx X. Xxxxxxx
Title: Vice President
State of Rhode Island )
) ss.
County of )
I certify that I know or have satisfactory evidence that Xxxxxx X.
Xxxxxxx signed this Limited Power of Attorney and acknowledged it to be his free
and voluntary act and deed for the uses and purposes hereinabove mentioned.
Dated April __, 2002
Notary Public for said County and State
My Commission Expires:
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