EXHIBIT 10.4 FIFTH AMENDMENT AND WAIVER TO LOAN AND SECURITY AGREEMENT This Fifth Amendment and Waiver to Loan and Security Agreement (this "Amendment"), is made and entered into effective as of the 14th day of May, 1998 by and between FINOVA CAPITAL CORPORATION, a Delaware corporation ("Lender") and AMERITRUCK DISTRIBUTION CORP., a Delaware corporation ("Borrower"). This Amendment modifies and amends that certain Loan and Security Agreement, dated May 5, 1997, between Lender and Borrower (the "Agreement"). All terms used herein with initial capital letters, unless otherwise specifically defined herein, shall have the same meanings as set forth in the Agreement. All references to the Agreement shall include the Schedule. R E C I T A L S: WHEREAS, Borrower has informed Lender that Borrower is attempting to obtain Twenty Million Dollars ($20,000,000) in connection with a private placement of its capital stock or indebtedness; WHEREAS, Borrower has also informed Lender that Events of Default exist as a result of a breach of the Current Ratio, Net Worth, Debt Service Coverage Ratio and Operating Ratio set forth in Section 13.14 of the Agreement for the period ending March 31, 1998 (the "March 31 Events of Default"); WHEREAS, in connection therewith, Borrower has requested that Lender waive the March 31 Events of Default, and Borrower and Lender desire to amend the Agreement in certain respects; WHEREAS, such amendments to the Agreement will provide Borrower with additional loans; NOW, THEREFORE, in consideration of the foregoing premises and other valuable consideration, the parties hereto agree as follows: 1. Waiver. Lender hereby waives the March 31 Events of Default. The ------ waiver of the March 31 Events of Default shall not constitute a waiver of any other Events of Default which may exist or hereafter arise under the Agreement or any of the other Loan Documents or an agreement by Lender to waive any other Events of Default. Without limiting the foregoing, Borrower's failure to comply with the covenants contained in Section 13.14 for any period ending after March 31, 1998 shall constitute an Event of Default. 2. Amendment to Schedule. Subject to the terms and conditions of --------------------- Section 3 below, the Agreement is amended as follows: (a) Section 18.1 of the Agreement shall be amended to add the following definition in the appropriate alphabetical order: "Second Additional Availability Period" means the 120 day period ------------------------------------- commencing on May 15, 1998 and ending on the earliest of (A) September 15, 1998, (B) the date a Qualified Private Placement is consummated and (C) the date Borrower notifies Lender in writing of its desire to terminate the Second Additional Availability Period. (b) Section 18.1 of the Agreement shall be amended to amend and restate in its entirety the definition of "Qualified Private Placement" as follows: "Qualified Private Placement" means any non-public sale of shares of --------------------------- any class of Borrower's capital stock or indebtedness yielding gross cash proceeds to Borrower of at least Ten Million Dollars ($10,000,000). (c) Section 1.1 of the Schedule to the Agreement is amended and restated in its entirety as follows: TOTAL FACILITY (Section 1.1): $60,000,000; provided, that during the -------- Second Additional Availability Period, the Total Facility shall be $62,500,000 (d) Section 1.2 of the Schedule to the Agreement is amended and restated in its entirety as follows: LOANS (SECTION 1.2): REVOLVING LOANS: A revolving line of credit (the "Revolving Loans") consisting of loans against Eligible Receivables and against Eligible Equipment in an aggregate outstanding principal amount not to exceed the lesser of: (a) Total Facility (b) the sum of: (i) an amount equal to eighty-five percent (85%) of the net amount of the Eligible Receivables that are billed; plus (ii) an amount (not to exceed the lesser of (A) Four Million Dollars ($4,000,000) and (B) an amount equal to three (3) working days' revenue (based on the most recent -2- monthly financials)) equal to seventy percent (70%) of Eligible Receivables that are unbilled less than five (5) Business Days; plus (iii) an amount equal to the Equipment Advance Rate multiplied by the Orderly Liquidation Value of the Eligible Equipment; plus (iv) during the Second Additional Availability Period only, an amount equal to the product of (A) the amount by which seventy- five percent (75%) exceeds the Equipment Advance Rate multiplied by (B) the Orderly Liquidation Value of the Eligible Equipment; less (v) the aggregate undrawn face amount of all Letters of Credit issued under Section 1.4 of this Agreement; less (vi) the amount of the Landlord Reserve and such other reserves as Lender, in its reasonable credit judgment, deems proper from time to time based on the results of its examinations, Appraisals or other credit or collateral considerations which indicate a deterioration in Eligible Receivables or Eligible Equipment from the date hereof, such that additional reserves for Eligible Receivables and/or Eligible Equipment are warranted. Notwithstanding the foregoing, (A) the loans against Eligible Equipment shall not exceed $35,000,000 at any time and (B) the availability described in clause (iv) above shall not be available at any time other than during the Second Additional Availability Period. The Revolving Loans shall be segregated into two tranches: revolving loans under tranche A (the "Revolving A Loans") and revolving loans under tranche B (the "Revolving B Loans"). The maximum outstanding principal amount of Revolving A Loans is Thirty Million Dollars ($30,000,000) and the maximum outstanding principal amount of Revolving -3- B Loans is Thirty Million Dollars ($30,000,000); provided, that during the -------- Second Additional Availability Period, the maximum outstanding principal amount of Revolving B Loans shall be Thirty-Two Million Five Hundred Thousand Dollars ($32,500,000). With respect to each request for a Revolving Loan or Letter of Credit, Borrower shall designate whether such request is for a Revolving A Loan (or under the tranche for Revolving A Loans in the case of Letters of Credit) or a Revolving B Loan (or under the tranche for Revolving B Loans in the case of Letters of Credit). With each request for a Revolving B Loan (or a Letter of Credit to be issued under the tranche for Revolving B Loans), Borrower shall provide Lender with a certificate of the chief financial officer of Borrower, in form and substance satisfactory to Lender that such Revolving B Loan or Letter of Credit, as applicable, will not result in a breach or violation of the Indenture, and at the request of Lender, with an opinion of Borrower's counsel that such Revolving B Loan or Letter of Credit, as applicable, will not result in a breach or violation of the Indenture. (e) The first section of Section 3.1(A) of the Schedule to the Agreement is amended and restated in its entirety as follows: INTEREST AND FEES (SECTION 3.1): A. INTEREST. -------- (i) The Revolving Loans shall bear interest on the unpaid principal amount thereof from the date such Revolving Loans are made and until paid in full at one of the following rates, as selected by Borrower from time to time as provided in this Section 3.1: (a) Base Rate Option. That portion of the outstanding principal balance of the outstanding principal balance of the Revolving Loan subject to this option shall bear interest at a fluctuating rate per annum equal to (A) if the Second Additional Availability Period has not ended, the Base Rate plus one and three-quarters percent (1.75%) and (B) the Base Rate plus three-quarters of one -4- percent (0.75%) at all other times; and (b) LIBOR Rate Option. That portion of the outstanding principal balance of the Revolving Loan subject to this option shall bear interest at a fixed rate per annum equal to (A) if the Second Additional Availability Period has not ended, the LIBOR Rate applicable to such LIBOR Rate Portion plus three and three-quarters percent (3.75%) and (B) the LIBOR Rate applicable to such LIBOR Rate Portion plus two and three- quarters percent (2.75%) at all other times. (f) A new Section 3.1(E) is added to the Schedule to the Agreement as follows: E. Fees for Second Additional Availability --------------------------------------- Period; Waiver Fee. Borrower shall pay ------------------ to Lender a Second Additional Availability Facility Fee equal to One Hundred Sixty Thousand Dollars ($160,000) which shall be payable as follows: (i) Forty Thousand Dollars ($40,000) on the first day of the Second Additional Availability Period, (ii) Thirty Thousand Dollars ($30,000) on June 15, 1998, (iii) Thirty Thousand Dollars ($30,000) on July 15, 1998, (iv) Thirty Thousand Dollars ($30,000) on August 15, 1998, and (v) Thirty Thousand Dollars ($30,000) on September 15, 1998; provided that upon termination of this Agreement or the Second Additional Availability Period, the entire unpaid Second Additional Availability Facility Fee shall be immediately due and payable. In addition, Borrower shall also pay to Lender a Waiver Fee equal to Thirty Five Thousand Dollars ($35,000) which shall be payable on the first day of the Second Additional Availability Period. 3. Conditions to Effectiveness. As a condition precedent to the --------------------------- effectiveness of this Amendment, Borrower agrees to fulfill its obligations under Section 4 below. -5- 4. Other Agreements. In consideration of providing the waiver set ---------------- forth above and amending the Agreement to provide additional loans to Borrower, Borrower agrees to (a) promptly upon the request to Lender, deliver to Lender such documents as Lender shall require and shall have delivered to Borrower to perfect its lien on the vehicles listed on Exhibit A and (b) cause its subsidiary, AmeriTruck, Ltd., an Ohio corporation, to execute and deliver to Lender a guaranty of the obligations of Borrower and a security agreement granting a lien on substantially all of its assets to secure such guaranty. 5. Confirmation of Liens. This Amendment in no way acts as a release --------------------- or relinquishment of any of the liens, security interests, rights or remedies securing payment of the Loans or of the enforcement thereof. Such liens, security interests, rights and remedies are hereby ratified, confirmed, preserved, renewed and extended by Borrower in all respects. 6. Reaffirmation of the Loan Documents. All terms, conditions and ----------------------------------- provisions of the Agreement and the other Loan Documents are hereby reaffirmed and continued in full force and effect and shall remain unaffected and unchanged except as specifically amended hereby. 7. Representations and Warranties. Borrower represents and warrants to ------------------------------ Lender that the execution and delivery by Borrower of this Amendment has been duly and properly made and authorized. The Loan Documents and this Amendment each constitute valid and binding obligations of Borrower, enforceable in accordance with their respective terms. 8. Benefit of the Amendment. The terms and provisions of this ------------------------ Amendment and the other Loan Documents shall be binding upon and inure to the benefit of Lender and Borrower and their respective successors and assigns, except that Borrower shall not have any right to assign its rights under this Amendment or any of the Loan Documents or any interest therein without the prior written consent of Lender. 9. Choice of Law. The Loan Documents and this Amendment shall be performed and construed in accordance with the laws of the State of Arizona. 10. Entire Agreement. Except as modified by this Amendment, the Loan Documents remain in full force and effect. The Loan Documents, as modified by this Amendment, embody the entire agreement and understanding between Borrower and Lender, and supersede all prior agreements and understandings between said parties relating to the subject matter thereof. 11. Counterparts; Telecopy Execution. This Amendment may be executed in any number of separate counterparts, each of which, when taken together, shall constitute one and the same agreement, admissible into evidence, notwithstanding the fact that all parties have not signed the same counterpart. Delivery of an executed counterpart of this Amendment by telefacsimile shall be equally as effective as delivery of a manually executed -6- counterpart of this Amendment. Any party delivering an executed counterpart of this Amendment by telefacsimile shall also deliver a manually executed counterpart of this Amendment, but the failure to deliver a manually executed counterpart shall not affect the validity, enforceability, and binding effect of this Amendment. IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as of the day, month, and year first above written. FINOVA CAPITAL CORPORATION, a Delaware corporation By ---------------------------------------- Name -------------------------------------- Title ------------------------------------- AMERITRUCK DISTRIBUTION CORP., a Delaware corporation By ---------------------------------------- Name -------------------------------------- Title ------------------------------------- -7- REAFFIRMATION OF GUARANTORS DATED MAY 14, 1998 Each of the undersigned hereby (i) confirms that it has read the foregoing Fifth Amendment and Waiver, and (ii) reaffirms its obligations under the Continuing Guaranty that it executed in favor of FINOVA Capital Corporation. AMERITRUCK EQUIPMENT CORP. AMERITRUCK LOGISTICS SERVICES, INC. AMERITRUCK REFRIGERATED TRANSPORT, INC. CMS TRANSPORTATION SERVICES, INC. KTL, INC. SCALES TRANSPORTATION CORPORATION SCALES LEASING COMPANY, INC. W&L SERVICES CORP. W&L MOTOR LINES, INC. AMERITRUCK OPERATIONS SERVICES, INC. BEST WAY MOTOR LINES, INC. PRO-TRANS SERVICES, INC. By ---------------------------------------- Name -------------------------------------- Title of each Guarantor --------------------- EXHIBIT A See Attached.