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                                                                   EXHIBIT 10.16

                              EMPLOYMENT AGREEMENT

This employment agreement (this "AGREEMENT") dated as of November 1, 2003 (the
"EFFECTIVE DATE"), is entered into by and between MOTORCAR PARTS & ACCESSORIES,
INC., a New York corporation currently having an address at 2929 California
Street, Torrance, California 90503 (together with its subsidiaries and
affiliates, the "COMPANY"), and Bill Laughlin, an individual residing at 8709
Man of War Drive, Waxhaw, North Carolina 28173 ("EXECUTIVE").

                                   WITNESSETH:

WHEREAS, the COMPANY desires to employ EXECUTIVE as its Vice President Sales,
Traditional Aftermarket Group (or such other position as shall be determined by
the Board of Directors of the COMPANY, or any duly authorized and acting
committee thereof, the "BOARD OF DIRECTORS") and EXECUTIVE desires to be so
employed by the COMPANY, all upon the terms and subject to the conditions
contained herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

1.    EMPLOYMENT. Subject to and upon the terms and conditions contained in this
      AGREEMENT, the COMPANY hereby agrees to employ EXECUTIVE and EXECUTIVE
      agrees to continue in the employ of the COMPANY, for the period set forth
      in Paragraph 2 hereof, to render the services to the COMPANY, its
      Affiliates and/or subsidiaries.

2.    TERM. EXECUTIVE'S term of employment under this AGREEMENT shall commence
      on the EFFECTIVE DATE and shall continue for a period through and
      including October 31, 2005 (the "EMPLOYMENT TERM") unless extended in
      writing by both parties or earlier terminated pursuant to the terms and
      conditions set forth herein.

3.    DUTIES.

      (a)   Unless otherwise determined by the BOARD OF DIRECTORS, EXECUTIVE
            shall be employed as the COMPANY'S Vice President Sales, Traditional
            Aftermarket Group and shall report to the COMPANY'S Chairman,
            President and Chief Executive Officer. In this connection EXECUTIVE
            will serve as a member of the COMPANY'S Executive Committee, which
            is made up of its senior executives. It is agreed that EXECUTIVE
            shall perform his service from the COMPANY'S facility to be
            established by it in the Charlotte, North Carolina vicinity, or any
            other facility mutually agreeable to the parties.

      (b)   EXECUTIVE agrees to abide by all By-Laws and applicable policies of
            the Company, including but not limited to the Company's Code of
            Business Conduct and Ethics, promulgated at any time and from time
            to time by the BOARD OF DIRECTORS, and the directions of the
            COMPANY'S Chairman, President and Chief Executive Officer.

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4.    EXCLUSIVE SERVICES AND BEST EFFORTS. EXECUTIVE shall devote all of his
      working time, attention, best efforts and ability to the service of the
      COMPANY during the term of this AGREEMENT.

5.    COMPENSATION. As compensation for his services and covenants hereunder,
      the COMPANY shall pay EXECUTIVE the following:

      (a)   Base Salary and Signing Bonus. The COMPANY shall pay EXECUTIVE a
            base salary ("SALARY") of One Hundred Eighty Five Thousand Dollars
            ($185,000) per year. In addition, no later than November 30, 2003,
            COMPANY shall pay EXECUTIVE a one-time "signing bonus" of $18,000.

      (b)   Bonus. In addition to the Sales Bonus Plan described in Schedule A
            hereto, EXECUTIVE shall participate in the COMPANY'S Executive Bonus
            Program as and when adopted and amended from time to time by the
            BOARD OF DIRECTORS. In the event of any part-year service by the
            EXECUTIVE, any Bonus shall be prorated (as reasonably determined by
            the BOARD OF DIRECTORS) for any part year service by EXECUTIVE.

6.    BUSINESS EXPENSES. EXECUTIVE shall be reimbursed for, and entitled to
      advances if permitted by applicable law (subject to repayment to the
      COMPANY if not actually incurred by EXECUTIVE) with respect to, only those
      business expenses incurred by him which are reasonable and necessary for
      EXECUTIVE to perform his duties under this AGREEMENT in accordance with
      policies established from time to time by the COMPANY. All expenditures
      and advances in excess of Five Hundred Dollars ($500.00) must be approved
      by the President and Chief Executive Officer of the COMPANY prior to being
      incurred or advanced.

7.    EMPLOYMENT BENEFITS AND OTHER ARRANGEMENTS.

      (a)   EXECUTIVE shall be entitled to three (3) weeks paid vacation each
            year during the EMPLOYMENT TERM at such times as do not, in the
            opinion of the Chairman, President and Chief Executive Officer,
            interfere with EXECUTIVE'S performance of his duties hereunder.

      (b)   EXECUTIVE shall be entitled to those benefits (including equity
            participation plan opportunities) usually provided from time-to-time
            to Vice President level employees of the COMPANY. During the term of
            this AGREEMENT, if EXECUTIVE does not elect or receive medical
            insurance coverage for himself and his eligible family through the
            COMPANY, he shall receive as an allowance for such medical insurance
            an amount equal to the then cost which would be incurred by the
            COMPANY in supplying such coverage for EXECUTIVE and his eligible
            family. The COMPANY may withhold from any benefits payable to
            EXECUTIVE all federal, state, local and other taxes and amounts as
            shall be permitted or required pursuant to law, rule or regulation.
            All of the benefits to which EXECUTIVE may be entitled may be
            changed from time to time or withdrawn at any time in the sole
            discretion of the COMPANY.

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      (c)   During the EMPLOYMENT TERM the COMPANY shall provide to executive an
            automobile allowance in the amount of Five Hundred Dollars ($500.00)
            per month.

      (d)   EXECUTIVE shall have the benefit of at least six months notice of
            the termination of his employment under this Agreement, including at
            the end of the EMPLOYMENT TERM, provided the foregoing shall not
            apply in the event of a termination for cause pursuant to Paragraph
            9.

      (e)   This AGREEMENT may be terminated by the COMPANY without Cause. In
            such event, EXECUTIVE shall continue to receive payments of SALARY
            and benefits as set forth in this AGREEMENT; provided, however, that
            EXECUTIVE shall be obligated to mitigate his damages as a result of
            the COMPANY'S termination of this AGREEMENT without Cause by seeking
            appropriate alternative paid employment, which employment shall be
            consistent with his expertise and employment history, and any SALARY
            otherwise payable to him thereafter shall be reduced by an amount
            equal to any amounts earned by EXECUTIVE from any person or entity
            during the period EXECUTIVE is to receive SALARY. In connection with
            EXECUTIVE'S obligation to mitigate his damages, EXECUTIVE shall use
            his best efforts to seek appropriate alternative employment and
            shall submit to COMPANY monthly reports as the COMPANY may
            reasonably request explaining Employee's efforts in connection
            therewith.

8.    DEATH AND DISABILITY.

      (a)   The EMPLOYMENT TERM shall terminate on the date of EXECUTIVE'S
            death, in which event EXECUTIVE'S accrued SALARY and BONUS,
            reimbursable expenses and benefits, including accrued but unused
            vacation time, owing to EXECUTIVE through the date of EXECUTIVE'S
            death shall be paid to the EXECUTIVE'S estate. EXECUTIVE'S estate
            will not be entitled to any other compensation upon termination of
            this AGREEMENT pursuant to this Paragraph 8 (a)

      (b)   If, during the EMPLOYMENT TERM, EXECUTIVE, because of physical or
            mental illness or incapacity, shall become substantially unable to
            perform the duties and services required of him under this AGREEMENT
            for a period of three (3) consecutive months, the COMPANY may, upon
            at least ten (10) days' prior written notice given at any time after
            the expiration of such three (3) month period to EXECUTIVE of its
            intention to do so, terminate this AGREEMENT as of such date as may
            be set forth in the notice. In any case of such termination,
            EXECUTIVE shall be entitled to receive his accrued SALARY and BONUS,
            if any, reimbursable expenses and benefits owing to EXECUTIVE
            through the date of termination. EXECUTIVE will not be entitled to
            any other compensation upon termination of this AGREEMENT.

9.    TERMINATION FOR CAUSE.

      (a)   The COMPANY may terminate the employment of EXECUTIVE for Cause (as
            hereinafter defined) without prior notice. Upon any such
            termination, the COMPANY shall be released from any and all further
            obligations under this AGREEMENT, except that the COMPANY shall be
            obligated to pay

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            EXECUTIVE his SALARY, reimbursable expenses and benefits owing to
            EXECUTIVE through the day on which EXECUTIVE is terminated.
            EXECUTIVE will not be entitled to any other compensation upon
            termination of this AGREEMENT pursuant to this Paragraph 9 (a).

      (b)   As used herein, the term "Cause" shall mean: (i) the willful failure
            of EXECUTIVE to perform his duties pursuant to Paragraph 3 hereof,
            which failure is not cured by EXECUTIVE within ten (10) days
            following notice thereof from the COMPANY; (ii) any other material
            breach of this AGREEMENT by EXECUTIVE, including any of the material
            representations or warranties made by EXECUTIVE; (iii) any act, or
            failure to act by EXECUTIVE in bad faith or to the detriment or to
            the detriment of the COMPANY; (iv) the commission by EXECUTIVE of an
            act involving moral turpitude, dishonesty, theft, unethical business
            conduct, or any other conduct which significantly impairs the
            reputation of, or harms, the COMPANY, its subsidiaries or
            affiliates; (v) any misrepresentation, concealment or omission by
            EXECUTIVE of any material fact in seeking or continuing employment
            hereunder, or (vi) any other occurrence or circumstance generally
            recognized a "cause" for employment termination under applicable
            law.

10.   DISCLOSURE OF INFORMATION AND RESTRICTIVE COVENANT. EXECUTIVE acknowledges
      that, by his employment, he has been and will be in a confidential
      relationship with the COMPANY and will have access to confidential
      information and trade secrets of the COMPANY, its subsidiaries and
      affiliates. Confidential information and trade secrets include, but are
      not limited to, customer, supplier, and client lists, marketing,
      distribution and sales strategies and procedures, operational and
      equipment techniques, business plans and system, quality control
      procedures and systems, special projects and technological research,
      including projects, research and reports for any entity or client or any
      project, research, report or the like concerning sales or manufacturing or
      new technology, EXECUTIVE compensation plans and any other information
      relating thereto, and any other records, files, drawings, inventions,
      discoveries, applications, processes, data, and information concerning the
      business of the COMPANY which are not in the public domain. EXECUTIVE
      agrees that in consideration of the execution of this AGREEMENT by the
      COMPANY:

      (a)   EXECUTIVE will not, during the term of this AGREEMENT or at any time
            thereafter, use, or disclose to any third party, trade secrets or
            confidential information of the COMPANY, including but not limited
            to, confidential information or trade secrets belonging or relating
            to the COMPANY, its subsidiaries, affiliates, customers and clients
            or proprietary processes or procedures of the COMPANY, its
            subsidiaries, affiliates, customers and clients. Proprietary
            processes and procedures shall include, but shall not be limited to,
            all information which is known or intended to be known only to
            executives of the COMPANY, its respective subsidiaries and
            affiliates or others in a confidential relationship with the COMPANY
            or its respective subsidiaries and affiliates which relates to
            business matters.

      (b)   EXECUTIVE will not, during the term of the AGREEMENT, directly or
            indirectly, under any circumstance other than at the direction and
            for the benefit of the

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            COMPANY, engage in or participate in any business activity,
            including, but not limit to, acting as a director, franchisor or
            franchisee, proprietor, syndicate member, shareholder or creditor or
            with a person having any other relationship with any other business,
            company, firm occupation or business activity, in any geographic
            area within the United States that is, directly or indirectly,
            competitive with any business completed by the COMPANY or any of its
            subsidiaries or affiliates during the term of this AGREEMENT or
            thereafter. Should EXECUTIVE own 5% or less of the issued and
            outstanding shares of a class of securities of a corporation the
            securities of which are traded on a national securities exchange or
            in the over-the-counter market, such ownership shall not cause
            EXECUTIVE to be deemed a shareholder under this Paragraph 10 (b).

      (c)   EXECUTIVE will not, during the term of this AGREEMENT and for a
            period of two (2) years thereafter on his behalf or on behalf of any
            other business enterprise, directly or indirectly, under any
            circumstance other than at the direction and for the benefit of the
            COMPANY, solicit or induce any creditor, customer, supplier,
            officer, EXECUTIVE or agent of the COMPANY or any of its
            subsidiaries or affiliates to sever its relationship with or leave
            the employ of any such entities.

      (d)   This Paragraph 10 and Paragraphs 11, 12 and 13 hereof shall survive
            the expiration or termination of this AGREEMENT for any reason.

      (e)   It is expressly agreed by EXECUTIVE that the nature and scope of
            each of the provisions set forth above in this Paragraph 10 are
            reasonable and necessary. If, for any reason, any aspect of the
            above provisions as it applies to EXECUTIVE is determined by a court
            of competent jurisdiction to be unreasonable, or unenforceable, the
            provision shall only be modified to the minimum extent required to
            make the provisions reasonable and/or enforceable, as the case may
            be. EXECUTIVE acknowledges and agrees that his services are of a
            unique character and expressly grants to the COMPANY or any
            subsidiary, successor or assignee of the COMPANY, the right to
            enforce the provisions above through the use of all remedies
            available at law or in equity, including, but not limited to,
            injunctive relief.

11.   COMPANY PROPERTY.

      (a)   Any patents, inventions, discoveries, applications or process,
            designs, devised, planned, applied, created, discovered or invented
            by EXECUTIVE in the course of EXECUTIVE'S employment under this
            AGREEMENT and which pertain to any aspect of the COMPANY'S or its
            respective subsidiaries' or affiliates' business shall be the sole
            and absolute property of the COMPANY, and EXECUTIVE shall make
            prompt report thereof to the COMPANY and promptly execute any and
            all documents reasonably requested to assure the COMPANY the full
            and complete ownership thereof.

      (b)   All records, files, lists, including computer generated lists,
            drawings, documents, equipment and similar items relating to the
            COMPANY'S business which EXECUTIVE shall prepare or receive from the
            COMPANY shall remain the COMPANY'S sole and exclusive property. Upon
            termination of this

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            AGREEMENT, EXECUTIVE shall promptly return to the COMPANY all
            property of the COMPANY in his possession. EXECUTIVE further
            represents that he will not copy or cause to be copied, print out or
            cause to be printed out any software, documents or other materials
            originating with or belonging to the COMPANY. EXECUTIVE additionally
            represents that, upon termination of his employment with the
            COMPANY, he will not retain in his possession any such software,
            documents or other materials.

12.   REMEDY. It is mutually understood and agreed that EXECUTIVE'S services are
      special, unique, unusual, extraordinary and of an intellectual character
      giving them a peculiar value, the loss of which cannot be reasonably or
      adequately compensated in damages in an action at law. Accordingly, in the
      event of any breach of this AGREEMENT by EXECUTIVE, including but not
      limited to, the breach of the non-disclosure, non-solicitation and
      non-compete clauses of Paragraph 10 hereof, the COMPANY shall be entitled
      to equitable relief by way of injunction or otherwise in addition to
      damages the COMPANY may be entitled to recover.

13.   REPRESENTATIONS AND WARRANTIES OF EXECUTIVE. In order to induce the
      COMPANY to enter into this AGREEMENT, EXECUTIVE hereby represents and
      warrants to the COMPANY as follows: (i) EXECUTIVE hereby has the legal
      capacity to unrestricted right to execute and deliver this AGREEMENT and
      to perform all of his obligations hereunder; (ii) the execution and
      delivery of this AGREEMENT by EXECUTIVE and the performance of his
      obligations hereunder will not will not violate or be in conflict with any
      fiduciary or other duty, instrument, agreement, document, ,arrangement or
      other understanding to which EMPOLOYEE is a party or by which he is or may
      be bound or subject; and (iii) EXECUTIVE is not a party to any instrument,
      agreement, document, arrangement or other understanding with any person
      (other than the COMPANY) requiring or restricting the use or disclosure of
      any confidential information or the provision of any employment,
      consulting or other services.

14.   NOTICES. All notices given hereunder shall be in writing and shall be
      deemed effectively given when hand-delivered or mailed, if sent by
      registered or certified mail, return receipt requested, addressed to
      EXECUTIVE at his address set forth on the first page of this AGREEMENT or
      to the COMPANY at its address set forth on the first page of this
      AGREEMENT or to such changed address as may be properly noticed hereunder.

15.   ENTIRE AGREEMENT. Other than any separate agreements which supplement and
      are cumulative to paragraphs 10, 11 and 12 hereof, this AGREEMENT
      constitutes the entire understanding of the parties with respect to its
      subject matter and no change, alteration or modification hereof may be
      made except in writing signed by the parties hereto. Any prior or other
      agreements, promises, negotiations or representations not expressly set
      forth in this AGREEMENT are of no force or effect.

16.   SEVERABILITY. If any provision of this AGREEMENT shall be unenforceable
      under any applicable law, then notwithstanding such unenforceability, the
      remainder of this AGREEMENT shall continue in full force and effect.

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17.   WAIVERS, MODIFICATIONS, ETC. No amendment, modification or waiver of any
      provision of this AGREEMENT shall be effective unless the same shall be in
      writing and signed by each of the parties hereto, and then such waiver or
      consent shall be effective only in the specific instance and for the
      specific purpose for which given.

18.   INDEMNIFICATION. COMPANY shall indemnify EXECUTIVE against any and all
      claims of third parties arising out of the lawful and authorized
      performance of his duties pursuant to this AGREEMENT by EXECUTIVE to the
      fullest extent permitted by law.

19.   ASSIGNMENT. Neither this AGREEMENT, nor any of EXECUTIVE'S rights, powers,
      duties or obligation hereunder, may be assigned by EXECUTIVE. This
      AGREEMENT shall be binding upon and inure to the benefit of EXECUTIVE and
      his heirs and legal representatives and the COMPANY and its successors and
      assigns.

20.   APPLICABLE LAW. This AGREEMENT shall be deemed to have been made, drafted,
      negotiated and the transactions contemplated hereby consummated and fully
      performed in the State of California, without regard to the conflicts of
      law rules thereof. Nothing contained in this AGREEMENT shall be construed
      so as to require the commission of any act contrary to law, and whenever
      there is any conflict between any provision of this AGREEMENT and any
      statue, law, ordinance, order or regulation, contrary to which the parties
      hereto have no legal right to contract, the latter shall prevail, but in
      such event any provision of this AGREEMENT so affected shall be curtailed
      and limited only to the extent necessary to bring it within applicable
      legal requirements.

21.   ARBITRATION; JURISDICTION AND VENUE; PREVAILING PARTY It is hereby
      irrevocably agreed that all disputes or controversies between COMPANY and
      EXECUTIVE arising out of, in connection with or relating to this AGREEMENT
      shall be exclusively heard, settled and determined by arbitration before a
      retired Federal or California judge to be held in the City of Los Angeles,
      County of Los Angeles. The arbitration shall be administered by JAMS
      pursuant to its Comprehensive Arbitration Rules and Procedures. The
      parties also agree that judgment may be entered on the arbitrator's award
      by any court having jurisdiction thereof and the parties consent to the
      jurisdiction of any court located in the City of Los Angeles, County of
      Los Angeles, for this purpose. The arbitrator shall allocate all of the
      costs of the arbitration, including the fees of the arbitrator and the
      reasonable attorneys' fees and expenses of the prevailing party, against
      the party who did not prevail.

22.   FULL UNDERSTANDING. EXECUTIVE represents and agrees that he fully
      understands his rights to discuss all aspects of this AGREEMENT with his
      private attorney, that to the extent, if any, that he desires, he availed
      himself of this right, that he has carefully read and fully understands
      all of the provisions of this AGREEMENT, that he is competent to execute
      this AGREEMENT, that his agreement to execute this AGREEMENT has not been
      obtained by any duress and that he freely and voluntarily enters into it,
      and that he has read this document in its entirety and fully understands
      the meaning, intent and consequences of this document.

23.   COUNTERPARTS. This AGREEMENT may be executed in any number of
      counterparts, each of which shall be deemed an original and all of which
      taken together shall constitute one and the same agreement.

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24.   LEGAL REPRESENTATION. The parties hereto acknowledge that each has been
      represented by independent counsel of such party's own choice throughout
      all of the negotiations which preceded the execution of this AGREEMENT and
      in connection with the preparation and execution of this AGREEMENT or has
      had the opportunity to do so and has not availed himself or itself of it.

IN WITNESS WHEREOF, the parties have executed this AGREEMENT as of the date
first above written.

                      MOTORCAR PARTS & ACCESSORIES, INC.

                      By:          /s/ SELWYN JOFFE
                         -------------------------------------------------------

                      Name/Date:   Selwyn Joffe

                      Title:       Chairman of the Board, President and Chief
                                   Executive Officer

                      /S/ BILL LAUGHLIN
                      ------------------------------------------
                      Bill Laughlin/October 2, 2003

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                                   SCHEDULE A
                                SALES BONUS PLAN

[EXECUTIVE SHALL BE ELIGIBLE FOR AN ANNUAL SALES BONUS PLAN BONUS OF UP TO 25%
OF HIS SALARY, THE TERMS OF WHICH ARE TO BE AGREED TO BY DECEMBER 31, 2003
THROUGH NEGOTIATION BETWEEN EXECUTIVE AND THE COMPANY'S CHAIRMAN OF THE BOARD,
PRESIDENT AND CHIEF EXECUTIVE OFFICER.]

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