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THIRD AMENDMENT
TO
CREDIT AGREEMENT
By and Among
RAILTEX, INC.,
THE SEVERAL FINANCIAL INSTITUTIONS
PARTY TO THIS AGREEMENT,
and
▇▇▇▇▇ FARGO BANK (TEXAS),
NATIONAL ASSOCIATION,
As Agent
Dated as of August 13, 1996
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TABLE OF CONTENTS
Page
Section 1........................................Certain Defined Terms 1
Section 2.....................................................Recitals 1
Section 3...................................................Amendments 1
Section 4...................Ratification of Continued Force and Effect 4
Section 5.........................................Conditions Precedent 4
Section 6...............................................Applicable Law 4
Section 7.......................................Successors and Assigns 4
Section 8.................................................Counterparts 4
Section 9.............................................Effect of Waiver 4
Section 10....................................................Headings 5
Section 11..........Non-Application of Chapter 15 of Texas Credit Code 5
Section 12............................................ENTIRE AGREEMENT 5
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THIRD AMENDMENT TO CREDIT AGREEMENT
This is the Third Amendment (the "Amendment") dated as of August 13,
1996 to a Credit Agreement, dated as of May 17, 1996, among ▇▇▇▇▇ Fargo Bank
(Texas), National Association (formerly known as First Interstate Bank of Texas,
N.A.), individually and as Agent, National Bank of Canada, New York Branch, ABN
Amro Bank, N.V. - Houston Agency, National City Bank, Kentucky and RailTex, Inc.
(as amended, the "Agreement").
In consideration of the following Recitals, for $10 in hand paid and
for other good and valuable considerations, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows, intending to be legally
bound:
Section 1. Certain Defined Terms. Capitalized terms used but not
defined herein have the meanings ascribed to them in the Agreement.
Section 2. Recitals. The Borrower has requested that the Issuing
Bank issue Letters of Credit. The Agent and the Banks concur in the request to
provide for Letters of Credit. This Amendment shall be effective on the date
(the "Effective Date") that all of the Conditions Precedent set out in Section 5
hereof have been met.
Section 3. Amendments. The Agreement is amended as follows:
(A) The definitions of "Credit Exposure," "Letter of Credit" and
"Letter of Credit Agreement" are amended in their entirety to read as follows:
"Credit Exposure" means the sum of the aggregate face amount of
the Letters of Credit minus the aggregate amount of drafts paid under
Letters of Credit for which the Issuing Bank has been reimbursed.
"Letter of Credit" means a letter of credit issued pursuant to
Section 3.1(b) of the Agreement; "Letters of Credit" means all
letters of credit issued pursuant to Section 3.1(b) of the Agreement.
"Letter of Credit Agreement" means each application and letter
of credit agreement now or hereafter executed by the Borrower or a
Subsidiary, or both, such agreement to be on the Issuing Bank's
standard form (with such changes thereto as the Borrower and the
Issuing Bank may agree to from time to time) and completed in form
and substance satisfactory to the Issuing Bank; "Letter of Credit
Agreements" means all of the Letter of Credit Agreements.
(B) The definition of "Loan Documents" found in Section 1.2 of the
Agreement is amended by changing the references to "Letter of Credit" and
"Letter of Credit Agreement" to be plural.
(C) Section 3.1 of the Agreement is amended by labeling the first
paragraph thereto "(a)", and by adding the following new subsections to the end
of Section 3.1:
"(b) Letters of Credit. Subject to, and upon the terms,
conditions, covenants and agreements contained herein and in the Letter of
Credit Agreements, prior to the Revolving Termination Date, the Issuing
Bank agrees to issue nontransferable standby Letters of Credit, in form and
substance satisfactory to the Issuing Bank, for the account of a Borrower
or a Subsidiary in an aggregate undrawn face amount at any time outstanding
not to exceed the lesser of the (a) Revolving Loan Commitments and (b) the
sum of (A) the then existing Credit Exposure plus (B) the then outstanding
Borrowings on the Revolving Loan Commitments. In the event of an actual
conflict between the terms and conditions of this Agreement and the terms
and conditions of any Letter of Credit Agreement, the terms and conditions
of this Agreement shall prevail. Letters of Credit shall be issued for a
period not exceeding the Revolving Termination Date.
"(c) In the event, on the Revolving Termination Date, there
remains any Credit Exposure, the Borrower agrees to deposit in a cash
collateral account maintained by the Agent an amount equal to the aggregate
undrawn amount of its respective Letters of Credit that are unmatured as of
such date or with respect to which presentment for honor may not then be
made; the unused portion thereof applicable to each respective Letter of
Credit, if any, shall be returned to the Borrower after the expiration date
of the Letter of Credit and after all Notes and Obligations hereunder and
under the Loan Documents applicable to the Letter of Credit are paid in
full."
(D) Section 3.2 of the Agreement is amended deleting subsections (c)
and (d) thereto.
(E) The first paragraph of Section 3.2(a) of the Agreement is
amended by deleting each reference to "plus any Credit Exposure."
(F) Subsection (d) of Section 3.6 of the Agreement is amended in its
entirety to read as follows:
"(d) Letter of Credit Fee. The Borrower agrees to pay to the
Agent, for the benefit of the Lenders in proportion to their respective
Commitment Percentages, a letter of credit fee of 1% per annum of the face
amount of each Letter of Credit. Such fee shall be paid, fully earned and
non-refundable upon acceptance by the Agent of the applicable Letter of
Credit Agreement."
(G) Subsection (a) of Section 3.20 of the Agreement is amended by
(1) adding the letter "s" to the end of the word "Letter" in the heading
thereto, (2) deleting the word "the" before the first, second and fifth
references to Letter of Credit and inserting the letter "a" therefor, (3) by
deleting the word "the" before the third and fourth references to Letter of
Credit and inserting the word "such" therefor, and (4) inserting the word
"applicable" before the word beneficiary in the second sentence thereto.
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(H) Subsections (i), (ii) and (iii) of Section 3.20(a) are amended
by deleting the word "the" before each reference to Letter of Credit and
inserting the word "any" therefor.
(I) Subsection (iv) of Section 3.20(a) of the Agreement is amended
by deleting the word "the" before the first and second reference to Letter of
Credit and inserting the word "any" in lieu thereof before the first reference,
and the letter "a" in lieu thereof before the second reference.
(J) Subsection (v) of Section 3.20(a) of the Agreement is amended by
deleting the word "the" before Letter of Credit and inserting the letter "a"
therefor.
(K) Subsection (b) of Section 3.20 of the Agreement is amended by (1)
deleting the word "the" before each reference to Letter of Credit and inserting
the word "each" before the first reference, the word "such" before the second
and fourth references, and the letter "a" before the third and fifth reference,
and (2) deleting the word "Acquisition" before each reference to Loan Commitment
and inserting the word "Revolving" therefor.
(L) Subsection (c) of Section 3.20 of the Agreement is amended by
deleting the word "the" before Letter of Credit and inserting the word "any"
therefor .
(M) Subsection (d) of Section 3.20 of the Agreement is amended by (1)
deleting the word "Acquisition" before each reference to Loan Commitments and
inserting the word "Revolving" therefor; (2) deleting the word "the" before the
second, third and fourth reference to Letter of Credit and inserting the letter
"a" therefor before the second reference, and the word "such" therefor before
the second and third reference; and (3) deleting each reference to "Interim
Acquisition Loan" and inserting the words "Borrowings under the Revolving Loan
Commitments" therefor.
(N) Subsection (g) of Section 3.20 of the Agreement is amended by
deleting the word "the" before Letter of Credit and inserting the letter "a"
therefor.
(O) Subsection (h) of Section 3.20 of the Agreement is amended by
changing the first three references of "Letter of Credit" to be references to
"Letters of Credit"; the fourth reference to "Letter of Credit" is amended by
inserting the word "applicable" before "Letter of Credit"; the fifth reference
to "Letter of Credit" is amended by deleting the word "the" before Letter of
Credit and inserting the word "any" therefor; the sixth reference to "Letter of
Credit" is amended by deleting the word "the" before "Letter of Credit" and
inserting the words "any such" therefor.
(P) Subsection (i) of Section 3.20 of the Agreement is amended by
deleting the word "the" before each reference to "Letter of Credit" and
inserting the letter "a" therefor.
(Q) Subsection (a) of Section 4.5 of the Agreement is amended by (1)
deleting the word "the" before the first reference to "Letter of Credit" and
inserting the word "each" therefor; (2) deleting the word "the" before the
fourth reference to "Letter of Credit" and inserting the word
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"such" therefor; and (3) deleting the word "the" before "Credit Request" in the
second paragraph thereof and inserting the word "each" therefor.
Section 4. Ratification of Continued Force and Effect. Ratification of
Continued Force and Effect". Except as specifically amended herein, all of the
terms and conditions of the Agreement and all of the Loan Documents executed in
connection therewith or contemplated thereby are and remain in full force and
effect in accordance with their respective terms. All of the terms used herein
have the same meanings as set out in the Agreement, unless amended hereby or
unless the context clearly required otherwise. References in the Agreement to
the "Agreement," and the "Credit Agreement," "hereof," "herein" and the words of
similar import shall be deemed to be references to the Agreement as amended
through the Effective Date. Any reference in any Note or any other Loan
Documents to the "Credit Agreement" shall be deemed to be references to the
Agreement as amended through the Effective Date.
Section 5. Conditions Precedent. The effectiveness of this Amendment is
subject to the full and complete satisfaction of the following conditions
precedent:
(A) Certain Authorizations. The Agent shall have received any
evidence of corporate authorization by the Borrower and such other
corporate documents as it may reasonably request.
(B) Certain Documents. The Agent shall have received the following
documents:
(1) This Amendment executed by all parties; and
(2) Such other and further documents and agreements as the Agent
or its counsel shall reasonably request.
Section 6. Applicable Law. This Amendment and all other Loan Documents
executed pursuant hereto shall be deemed to have been made and to be performable
in Houston, ▇▇▇▇▇▇ County, Texas and shall be governed by and construed in
accordance with the laws of the State of Texas.
Section 7. Successors and Assigns. This Amendment is binding upon and
shall inure to the benefit of the Lenders, the Agent and the Borrower and their
respective successors and assigns, except the Borrower may not assign or
transfer any of its rights or obligations hereunder without the prior written
consent of the Lenders and the Agent.
Section 8. Counterparts. This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original,
but all of which when taken together shall constitute one and the same
instrument.
Section 9. Effect of Waiver. No consent or waiver, express or implied, by
any Lender
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or the Agent to or for any breach of or deviation from any covenant, condition
or duty by the Borrower shall be deemed a consent or waiver to or of any other
breach of the same or any other covenant, condition or duty.
Section 10. Headings. The headings, captions, and arrangements used in
this Amendment are for convenience only and shall not affect the interpretation
of this Amendment.
Section 11. Non-Application of Chapter 15 of Texas Credit Code. The
provisions of Chapter 15 of the Texas Credit Code (Vernon's Annotated Texas
Statutes, Article 5069-15) are specifically declared by the parties not to be
applicable to this Amendment or any of the Loan Documents or the transactions
contemplated hereby.
Section 12. ENTIRE AGREEMENT. ENTIRE AGREEMENT". THIS AMENDMENT, THE
AGREEMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS, AND AGREEMENTS EXECUTED AND
DELIVERED IN CONNECTION WITH THIS AMENDMENT REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES HERETO MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE
NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES HERETO.
IN WITNESS WHEREOF, the parties have caused this Amendment to be duly
executed and delivered effective as of August 13, 1996.
BORROWER:
RAILTEX, INC. Address: ▇▇▇▇ ▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇
By: _________________________ Vice President and
▇▇▇▇▇ ▇. ▇▇▇▇▇▇ Chief Financial Officer
Vice President and Telephone No. (▇▇▇) ▇▇▇-▇▇▇▇
Chief Financial Officer Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇
AGENT:
▇▇▇▇▇ FARGO BANK (TEXAS), Address: 1000 Louisiana
NATIONAL ASSOCIATION ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
(formerly known as FIRST INTERSTATE
BANK OF TEXAS, N.A.)
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Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President
Telephone No. (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇
By
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▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President
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LENDERS:
▇▇▇▇▇ FARGO BANK (TEXAS), Domestic Lending Office and
NATIONAL ASSOCIATION Eurodollar Lending Office
(formerly known as FIRST INTERSTATE
BANK OF TEXAS, N.A.)
Address: 1000 Louisiana
By___________________________ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇ Attn: ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Vice President Vice President
Telephone No. (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇
Domestic Lending Office and
Eurodollar Lending Office
NATIONAL BANK OF CANADA, Address: National Bank of Canada,
NEW YORK BRANCH ▇▇▇ ▇. ▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇. ▇▇▇▇▇ ▇▇▇▇▇
Telephone No. (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇
By
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▇▇▇▇▇ ▇. ▇▇▇▇▇
Group Vice President With a copy to:
and National Bank of Canada
▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
By Attn: Mr. ▇▇▇▇▇▇▇ ▇▇▇▇▇
------------------------- Vice President
▇▇▇▇▇▇▇ ▇▇▇▇▇ Telephone No. (▇▇▇) ▇▇▇-▇▇▇▇
Vice President Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇
Domestic Lending Office and
Eurodollar Lending Office
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ABN AMRO BANK, N.V.- Address: 3 Riverway, Suite 1700
HOUSTON AGENCY ▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇▇
By: ABN AMRO NORTH AMERICA, INC., Attn: ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
as Agent Telephone No. (▇▇▇) ▇▇▇-▇▇▇▇
Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇
Domestic Lending Office and
Eurodollar Lending Office
By:
--------------------------
Name:
Title:
and
By:
--------------------------
Name:
Title:
NATIONAL CITY BANK, KENTUCKY Address: ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇, ▇▇.
Telephone No. (▇▇▇) ▇▇▇-▇▇▇▇
By:_________________________ Telecopy No. (▇▇▇) ▇▇▇-▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇
Vice President Domestic Lending Office and
Eurodollar Lending Office
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