AMENDMENT AND FORBEARANCE
AGREEMENT
AMENDMENT AND FORBEARANCE AGREEMENT (as amended
or otherwise modified from time to time in accordance with the
terms here, the " Agreement ") dated as of September 15,
2009, 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).
R E C I T A L S:
WHEREAS, Agent and Borrowers have entered into
certain financing arrangements pursuant to the Credit
Agreement dated as of February 12, 2008 among Agent,
Borrowers and the Lenders from time to time party thereto (as
amended hereby, and as the same may have heretofore been or may
hereafter be further amended, modified, supplemented, extended,
renewed, restated or replaced (the " Credit Agreement
"));
WHEREAS, as of the date hereof, Borrowers are in
default under the Credit Agreement as more particularly described
below;
WHEREAS, the circumstances described herein
constitute multiple Events of Default under the Credit Agreement
and the Loan Documents;
WHEREAS, Borrowers have requested that Agent and
Lenders forbear from exercising their rights as a result of such
Events of Default, which are continuing, and that Lenders provide
further Revolving Loans and other financial accommodations to
Borrowers notwithstanding such Events of Default; and
WHEREAS, Agent and Lenders are willing to agree
to forbear from exercising certain of their rights and remedies and
provide certain further Revolving Loans and other financial
accommodations to Borrowers solely for the period and on the terms
and conditions specified herein.
NOW, THEREFORE, in consideration of the
foregoing, and the respective agreements, warranties and covenants
contained herein, the parties hereto agree as follows:
1.1.
Interpretation. All capitalized terms used
herein (including the recitals hereto) shall have the respective
meanings ascribed thereto in the Credit Agreement unless otherwise
defined herein.
1.2.
Additional Definitions. As used herein, the
following terms shall have the respective meanings given to them
below, and the Credit Agreement is hereby amended to include, in
addition and not in limitation, each of the following
definitions:
(a) "Agent"
shall mean Bank of America, N.A., in its capacity as Administrative
Agent under the Loan Documents.
(b) "Anticipated
Defaults" shall mean any Events of Default that arise due to the
circumstances more particularly identified on Exhibit A
hereto, under the heading "Anticipated Defaults".
(c) "Existing
Defaults" shall mean the Events of Default more particularly
identified on Exhibit A hereto, under the heading
"Existing Defaults".
(d) "Forbearance
Period" means the period commencing on the date hereof and ending
on the date which is the earliest of (i) February 28, 2010; (ii)
the occurrence or existence of any Event of Default, other than the
Existing Defaults and the Anticipated Defaults; or (iii) the
occurrence of any Termination Event.
(e) "Termination
Event" means the initiation of any action by any Loan Party or any
Releasing Party (as defined herein) to invalidate or limit the
enforceability of any of the acknowledgments set forth in
Section 2.1, the release set forth in Section 8.6 or the
covenant not to sue set forth in Section 8.7.
2.1.
Acknowledgment of Obligations. Each Borrower
hereby acknowledges, confirms and agrees that as of the close of
business on September 15, 2009, (a) Borrowers are indebted to
Lenders in respect of the Revolving Loan in the principal amount of
$0, (b) Borrowers are indebted to Lenders in respect of the
Term Loan in the aggregate principal amount of $3,549,942.04, and
(c) Borrowers are indebted to Lenders in respect of Letters of
Credit in the face amount of $718,031.00. Each Borrower
hereby acknowledges, confirms and agrees that all such Loans and
other Obligations, together with interest accrued and accruing
thereon, and all fees, costs, expenses and other charges now or
hereafter payable by any Borrower to Lenders, are unconditionally
owing by Borrowers to Lenders, without offset, defense or
counterclaim of any kind, nature or description
whatsoever.
2.2.
Acknowledgment of Security Interests. Each
Borrower hereby acknowledges, confirms and agrees that Agent has
and shall continue to have valid, enforceable and perfected
first-priority liens upon and security interests in the Collateral
heretofore granted to Agent, for the benefit of Agent and Lenders,
pursuant to the Credit Agreement, the Guaranty and Collateral
Agreement and the other Loan Documents or otherwise granted to or
held by Agent, for the benefit of Agent and Lenders, subject only
to Permitted Liens.
2.3.
Binding Effect of Documents. Each Borrower
hereby acknowledges, confirms and agrees that: (a) each of the
Credit Agreement and the other Loan Documents to which it is a
party has been duly executed and delivered to Agent by such
Borrower, and each is and shall remain in full force and effect as
of the date hereof except as modified pursuant hereto, (b) the
agreements and obligations of such Borrower contained in such
documents and in this Agreement constitute the legal, valid and
binding Obligations of such Borrower, enforceable against it in
accordance with their respective terms, and such Borrower has no
valid defense to the enforcement of such Obligations, and
(c) Agent and Lenders are and shall be entitled to the rights,
remedies and benefits provided for under the Credit Agreement and
the Loan Documents and applicable law.
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FORBEARANCE
IN RESPECT OF ANTICIPATED DEFAULTS AND EXISTING
DEFAULTS
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3.1.
Acknowledgment of Default. Each Borrower hereby
acknowledges and agrees that the Existing Defaults have occurred
and are continuing, each of which constitutes an Event of Default
and entitles Agent and Lenders to exercise their rights and
remedies under the Credit Agreement and the other Loan Documents,
applicable law or otherwise. Each Borrower represents
and warrants that as of the date hereof, no Events of Default exist
other than the Existing Defaults. Each Borrower hereby
acknowledges and agrees that Agent and Lenders have the exercisable
right to declare the Obligations to be immediately due and payable
under the terms of the Credit Agreement and the other Loan
Documents. Each Borrower acknowledges that Lenders are
no longer obligated to make any disbursements of the Revolving
Loan, or to issue Letters of Credit.
(a) In
reliance upon the representations, warranties and covenants of
Borrowers contained in this Agreement, and subject to the terms and
conditions of this Agreement and any documents or instruments
executed in connection herewith, Agent and Lenders agree to forbear
during the Forbearance Period from exercising their rights and
remedies under the Credit Agreement and the other Loan Documents or
applicable law in respect of or arising out of the Existing
Defaults and the Anticipated Defaults.
(b) Upon
the expiration or termination of the Forbearance Period, the
agreement of Agent and Lenders to forbear shall automatically and
without further action terminate and be of no force and effect, it
being expressly agreed that the effect of such termination will be
to permit Agent and Lenders to exercise immediately all rights and
remedies under the Credit Agreement and the other Loan Documents,
and under applicable law, with respect to any and all Anticipated
Defaults (to the extent then constituting Events of Default) and
the Existing Defaults, including, but not limited to,
(i) ceasing to make any further Loans or issuing any further
Letters of Credit and (ii) accelerating all of the Obligations
under the Credit Agreement and the other Loan Documents; in each
case without any further notice to any Borrower, passage of time or
forbearance of any kind.
3.3.
No Waivers; Reservation of Rights.
(a) Agent
and Lenders have not waived, are not by this Agreement waiving, and
have no intention of waiving, any Events of Default which may be
continuing on the date hereof or any Events of Default which may
occur after the date hereof (whether the same or similar to the
Anticipated Defaults, the Existing Defaults or otherwise), and
Agent and Lenders have not agreed to forbear with respect to any of
their rights or remedies concerning any Events of Default (other
than, during the Forbearance Period, the Existing Defaults and the
Anticipated Defaults to the extent expressly set forth herein)
occurring at any time.
(b) Subject
to Section 3.2 above (solely with respect to the Anticipated
Defaults and the Existing Defaults), Agent and Lenders reserve the
right, in their discretion, to exercise any or all of their rights
and remedies under the Credit Agreement and the other Loan
Documents as a result of any other Events of Default occurring at
any time. Agent and Lenders have not waived any of such
rights or remedies, and nothing in this Agreement, and no delay on
their part in exercising any such rights or remedies, shall be
construed as a waiver of any such rights or remedies.
3.4.
Additional Events of Default. The parties hereto
acknowledge, confirm and agree that any misrepresentation by any
Borrower, or any failure of any Borrower to comply with the
covenants, conditions and agreements c

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