This excerpt taken from the ODFL 8-K filed Sep 28, 2005.
A. The Borrower, certain banks and other financial institutions, and Wachovia Bank, National Association, as agent for the Lenders, are parties to a Credit Agreement, dated as of September , 2005 (as amended, modified or supplemented from time to time, the Credit Agreement), providing for the availability of certain credit facilities to the Borrower upon the terms and conditions set forth therein.
B. It is a condition to the extension of credit to the Borrower under the Credit Agreement that each Guarantor shall have agreed, by executing and delivering this Guaranty, to guarantee to the Guaranteed Parties the payment in full of the Guaranteed Obligations (as hereinafter defined). The Guaranteed Parties are relying on this Guaranty in their decision to extend credit to the Borrower under the Credit Agreement, and would not enter into the Credit Agreement without this Guaranty.
C. The Borrower and the Guarantors are engaged in related businesses and undertake certain activities and operations on an integrated basis. As part of such integrated operations, the Borrower, among other things, will advance to the Guarantors from time to time certain proceeds of the Loans made to the Borrower by the Lenders under the Credit Agreement. Each Guarantor will therefore obtain benefits as a result of the extension of credit to the Borrower under the Credit Agreement, which benefits are hereby acknowledged, and, accordingly, desires to execute and deliver this Guaranty.