Document:

ex10-1_0509

EXECUTION COPY

 AMENDMENT NO. 4

                    AMENDMENT NO. 4 dated as of May 9, 2005 to the Credit Agreement referred to below, between MDC Partners Inc., a Canadian corporation (“MDC Partners”), Maxxcom Inc., an Ontario corporation (“Maxxcom Canada”), Maxxcom Inc., a Delaware corporation (“Maxxcom
U.S.” and together with MDC Partners and Maxxcom Canada, the “Borrowers”), each of the Lenders identified under the caption
“LENDERS” on the signature pages hereto and JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank), as U.S. administrative agent for the Lenders (in such capacity, the “U.S.
Administrative Agent”). 

                    The Borrowers, the Lenders party thereto (individually, a “Lender” and, collectively, the “Lenders”), the U.S. Administrative Agent, JPMCB, as Collateral Agent (in such capacity, the “Collateral Agent”), and JPMCB, Toronto Branch, as Canadian Administrative Agent (in such capacity, the “Canadian Administrative Agent” and together with the U.S.
Administrative Agent, the “Administrative Agents”) are parties to a Credit Agreement dated as
of September 22, 2004 (as amended, the “Credit Agreement”). The Borrowers and the Required
Lenders wish to amend the Credit Agreement in certain respects, and accordingly, the parties hereto hereby agree as follows: 

                    Section 1. Definitions. Capitalized terms used in this Amendment No. 4 and not otherwise defined are used herein as defined in the Credit Agreement
(as amended hereby). 

                    Section 2. Amendments. Effective as provided in Section 6 hereof, the Credit Agreement shall be amended as follows: 

                    2.01. References in the Credit Agreement (including references to the Credit Agreement as amended hereby) to “this Agreement” (and indirect references such as “hereunder”, “hereby”,
“herein” and “hereof”) shall be deemed to be references to the Credit Agreement as amended hereby. 

                  2.02. Section 8.01 of the Credit Agreement is hereby amended in its entirety to read as follows

                   “8.01 Total Debt Ratio. MDC Partners will not permit the Total Debt Ratio as of the last day of any Test Period ending on or, as applicable,
after the dates set forth below to exceed the ratio set forth opposite such Test Period: 

	
Test Period Ending 
		
Total Debt Ratio 
	
	 	 
	
December 31, 2004 
		
3.25 to 1.00 
	
	
March 31, 2005 
		
3.50 to 1.00 
	
	
June 30, 2005 
		
3.75 to 1.00 
	
	
September 30, 2005 
		
2.90 to 1.00 
	
	
December 31, 2005 and thereafter 
		
2.50 to 1.00 
	

2 

 

                 Section 3. Waivers. Subject to the satisfaction of the conditions precedent specified in Section 6 hereof, but with
effect on and after the date hereof, the Lenders hereby waive any Default that may have occurred and be continuing solely as a result of (a) the Borrowers’ failure to comply with the requirements of Section 8.01 of the Credit Agreement solely
with respect to the Test Period ending March 31, 2005, at any time on or after March 31, 2005, and (b) any breach of any representation or warranty made or deemed made by Borrowers during such period with respect to such compliance. 

                 Section 4. Representations and Warranties. Each Borrower represents and warrants (as to itself and each of its
Subsidiaries) to the Agents and Lenders that (a) the representations and warranties set forth in Article V of the Credit Agreement and in each of the other Loan Documents are complete and correct on the date hereof as if made on and as of such date
and as if each reference in said Article V to “this Agreement” included reference to this Amendment No. 4 and (b) (after giving effect to the waivers under Section 3 hereof) no Default shall have occurred and be continuing. 

                   Section 5. Confirmation of Security Documents. Each of the Borrowers hereby confirms and ratifies all of its obligations under the Loan Documents to
which it is a party, including its obligations as a guarantor under Article III of the Credit Agreement as amended hereby. By its execution on the respective signature lines provided below, each of the Guarantors hereby confirms and ratifies all of
its obligations and the Liens granted by it under the Security Documents to which it is a party, represents and warrants that the representations and warranties set forth in such Security Documents are complete and correct on the date hereof as if
made on and as of such date and confirms that all references in such Security Documents to the “Credit Agreement” (or words of similar import) refer to the Credit Agreement as amended hereby without impairing any such obligations or Liens
in any respect. 

                  Section 6. Conditions Precedent to Effectiveness. The amendments set forth in Section 2 hereof and the waivers in Section 3 hereof shall become effective as of the date hereof, upon (a) receipt by the U.S. Administrative Agent of one or more counterparts of this Amendment No. 4 executed by the Obligors and the Required Lenders and (b) the payment of an amendment fee to the U.S. Administrative Agent for the account of each Lender that has approved this Amendment No. 4, such amendment fee to be in an amount equal to 0.25% of the Commitment of such Lender. 

                 Section 7. Miscellaneous. Except as herein provided, the Credit Agreement shall remain unchanged and in full force and
effect. This Amendment No. 4 may be executed in any number of counterparts, all of which taken together shall constitute one and the same agreement and any of the parties hereto may execute this Amendment No. 4 by signing any such counterpart. This
Amendment No. 4 shall be governed by, and construed in accordance with, the law of the State of New York. 

3

 

                   IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to be duly executed and delivered as of the day and year first above written. 

	 	 MDC PARTNERS INC.  
	 

		 	 
	 

		 	 
	 	 By:

    
	________________________________

	 	 
		 Name:  
	 	 
		
 Title:  Authorized Signatory 
	
	 

	
	 

	
	 	By:	________________________________

	 
		 
		 Name:  
	 	 
		
 Title:  Authorized Signatory 
	
	 

	
	 

	
	 	 MAXXCOM INC., an Ontario corporation  

	 

		 	 
	 

		 	 
	 	 By:	________________________________

	 	 
		 Name: 

	
	 	 
		
 Title:  Authorized Signatory 
	
	 

		 	 
	 

		 	 
	 	By:	________________________________

	 	 
		 Name: 

	
	 	 
		
 Title:  Authorized Signatory 
	
	 	 	 
	 	 	 
	 	 MAXXCOM INC., a Delaware corporation  

	 	 	 
	 	 	 
	 	By:	________________________________

	 	 
		 Name: 

	
	 	 
		
 Title:  Authorized Signatory 
	
	 	 	 
	 	 	 
	 	By:	________________________________

	 	 
		 Name: 

	
	 	 
		
 Title:  Authorized Signatory 
	

4 

 

	 	 Agreed as set forth in Section 6 above:

      

      GUARANTORS
	 	 
	Signed sealed and delivered by the attorney of 

    Placard Pty Ltd ACN 074 646 343 under power of 

    attorney and who has received no notice of the 

    revocation of the power, in the presence of: 	 
	 	 
	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 
	 Signature of witness  	 Signature of attorney  
	 	 
	 Name of witness: Ray Forzley  	 Name of attorney: Walter Campbell  

 

5 

 

	 	1208075 ONTARIO LIMITED 

      1220777 ONTARIO LIMITED 

      1385544 ONTARIO LIMITED 

      2026646 ONTARIO LIMITED 

      656712 ONTARIO LIMITED

    AMBROSE CARR LINTON CARROLL INC. 

    ASHTON POTTER CANADA INC. 

    ASHTON-POTTER CANADA LTD. 

    BRUCE MAU DESIGN INC. 

    BRUCE MAU HOLDINGS LTD. 

    CAMPBELL + PARTNERS COMMUNICATIONS LTD. 

    COMPUTER COMPOSITION OF CANADA INC. HENDERSON BAS 

    MAXXCOM (NOVA SCOTIA) CORP. 

    MAXXCOM INTERACTIVE INC. 

    METACA CORPORATION 

    STUDIOTYPE INC. TREE CITY INC. 
    
	 	 
	 	By: 	________________________________
	 	 	Name: 

  Title: Authorized Signatory 
	 	 	 
	 	By: 	________________________________
	 	 	Name: 

  Title: Authorized Signatory 

 

6 

 

	 	ACCENT ACQUISITION CO. 

      ACCENT INTERNATIONAL, INC. 

      ACCENT MARKETING SERVICES, L.L.C. 

      ASHTON-POTTER (USA) LTD. 

    BRATSKEIR & COMPANY, INC. 

    CHINNICI DIRECT, INC.

    CMS U.S. HOLDCO, INC. 

    COLLE & MCVOY, INC. 

    CPB ACQUISITION INC. 

    CRISPIN PORTER & BOGUSKY LLC 

    DOTGLU LLC 

    FLETCHER MARTIN LLC 

    FMA ACQUISITION CO. 

    HELLO ACQUISITION INC. 

    KBP HOLDINGS LLC 

    KIRSHENBAUM BOND & PARTNERS LLC 

    KIRSHENBAUM BOND & PARTNERS WEST LLC 

    LAFAYETTE PRODUCTIONS LLC 

    MACKENZIE MARKETING, INC. 

    MARGEOTES/FERTITTA + PARTNERS LLC

    MAXXCOM (USA) FINANCE COMPANY 

    MAXXCOM (USA) HOLDINGS INC. 

    MDC USA HOLDINGS INC. 

    MDC/KBP ACQUISITION INC

     MF+P ACQUISITION CO. 

     MONO ADVERTISING, LLC 

     PRO-IMAGE CORPORATION 

    SABLE ADVERTISING SYSTEMS, INC. 

    SMI ACQUISITION CO. 

    SOURCE MARKETING LLC 

    TARGETCOM LLC 

    VITROROBERTSON LLC 

    ZG ACQUISITION INC. 

    ZYMAN GROUP, LLC 

    
	 	 
	 	By: 	________________________________
	 	 	Name: 

      Title: Authorized Signatory 
	 	 	 
	 	By: 	________________________________
	 	 	Name: 

      Title: Authorized Signatory 

 

7 

 

	 	 LENDERS
	  	 	 
	 	 JPMORGAN CHASE BANK, N.A.
	 	 	 
	  	 	 
	 	
      By:

    
	________________________________

	 	  	 Name:  
	 	  	  Title:  
	  
	  
	 	
       JPMORGAN CHASE BANK, TORONTO BRANCH 

	  	 	 
	  	 	 
	 	 By:	________________________________

	 	  	 Name:  
	 	  	  Title:  
	  	 	 
	 	 	 
	 	
       BANK OF MONTREAL (CHICAGO BRANCH)

	 	 	 
	 	 	 
	 	By:	________________________________

	 	  	 Name:  
	 	  	  Title:   
	 	 	 
	 	 	 
	 	 BANK OF MONTREAL
	 	 	 
	 	 	 
	 	By:	________________________________

	 	  	 Name:  
	 	  	  Title:   
	 	 	 
	 	 	 
	 	 THE BANK OF NOVA SCOTIA, by its Atlanta Agency
	 	 	 
	 	 	 
	 	By:	________________________________

	 	  	 Name:  
	 	  	  Title:   

 

8 

 

	 	      THE BANK OF NOVA SCOTIA
	 	 	 
	  	 	 
	 	
      By:

    
	________________________________

	 	  	 Name:  
	 	  	  Title:  
	 	 	 
	 	 	 
	 	
      By:

    
	________________________________

	 	  	 Name:  
	 	  	  Title:  
	  
	  
	 	
              TORONTO DOMINION (TEXAS) INC.

	  	 	 
	  	 	 
	 	 By:	________________________________

	 	  	 Name:  
	 	  	  Title:  
	  	 	 
	 	 	 
	 	
              THE TORONTO-DOMINION BANK

	 	 	 
	 	 	 
	 	By:	________________________________

	 	  	 Name:  
	 	  	  Title:   
	 	 	 
	 	 	 
	 	      CIBC INC.
	 	 	 
	 	 	 
	 	By:	________________________________

	 	  	 Name:  
	 	  	  Title:   

 

9

  

	 	      CANADIAN IMPERIAL BANK OF COMMERCE
	 	 	 
	  	 	 
	 	
      By:

    
	________________________________

	 	  	 Name:  
	 	  	  Title:  
	 	 	 
	 	 	 
	 	
      By:

    
	________________________________

	 	  	 Name:  
	 	  	  Title:WAIVER AND AMENDMENT NO. 5
                                       TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

         This WAIVER AND AMENDMENT NO. 5 (this "Amendment") is entered into as
of this 9th day of May, 2005 by and among STANDARD MOTOR PRODUCTS, INC., a New
York corporation ("SMP"), STANRIC, INC., a Delaware corporation ("SI"), MARDEVCO
CREDIT CORP., a New York corporation ("MCC"),(SMP, SI and MCC are sometimes
collectively referred to herein as "Borrowers" and individually as a
"Borrower"), the other Credit Parties signatory to the Credit Agreement (as
herein defined), lenders who are party to the Credit Agreement ("Lenders"),
GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware corporation, in its capacity as
Agent for Lenders ("Agent"), BANK OF AMERICA, N.A., for itself, as Lender, and
as Syndication Agent, and GMAC COMMERCIAL FINANCE LLC (as successor by merger to
GMAC Commercial Credit LLC), for itself, as Lender, and as Documentation Agent.

         WHEREAS, pursuant to that certain Amended and Restated Credit Agreement
dated as of February 7, 2003, by and among Borrowers, Credit Parties, Agent,
Syndication Agent, Documentation Agent and Lenders (including all annexes,
exhibits and schedules thereto, as from time to time amended, restated,
supplemented or otherwise modified, the "Credit Agreement"), Lenders have made
Loans to, and incurred Letter of Credit Obligations on behalf of Borrowers; and

         WHEREAS, Borrowers have requested Agent and Requisite Lenders waive an
Event of Default existing with respect to the Fixed Charge Coverage Ratio as of
March 31, 2005 and to amend such covenant for subsequent fiscal periods, and
Agent and Requisite Lenders are willing to do so on the terms and conditions
hereafter set forth.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in furtherance of the
Borrowers' duties to give further assurances to the Agent and Lenders pursuant
to the terms of the Credit Agreement, the parties hereto agree as follows:

         1. DEFINITIONS. All capitalized terms not otherwise defined herein
shall have the meanings given to them in the Credit Agreement.

         2. WAIVER. Subject to the satisfaction of the conditions precedent set
forth in Section 4 below Agent and Requisite Lenders hereby waive the Event of
Default existing pursuant to Section 8.1(b) of the Credit Agreement solely as a
result of Borrowers' failure to comply with the Minimum Fixed Charge Coverage
Ratio contained in Annex G for the Fiscal Quarter ended on March 31, 2005.

         3. AMENDMENTS TO CREDIT AGREEMENT. Subject to satisfaction of the
conditions precedent set forth in Section 4 below, the Credit Agreement is
hereby amended as follows:
<PAGE>

         (a) Section 6.8(f) of the Credit Agreement is hereby deleted in its
entirety and replaced with the following:

                           "(f) the sale of any (x) Sun Trust Drafts pursuant to
                           the AutoZone/Sun Trust Program, and (y) Customer
                           Drafts pursuant to the applicable Customer Programs;
                           PROVIDED, HOWEVER, Borrowers shall not permit Early
                           Draft Sales to exceed 15% of Borrowers total net
                           sales for (a) the two (2) month period ending June
                           30, 2005, (b) the five (5) month period ending
                           September 30, 2005, (c) the eight (8) month period
                           ending December 31, 2005, (d) the eleven (11) month
                           period ending March, 2006 and (e) the four Fiscal
                           Quarters ending on the last day of each March, June,
                           September and December thereafter."

         (b) Annex A of the Credit Agreement is hereby amended by adding the
following defined term in its appropriate alphabetical order:

                           "EARLY DRAFT SALES" shall mean the sale of SunTrust
                           Drafts and Customer Drafts more than ten (10) days
                           prior to the maturity date of such drafts to SunTrust
                           Bank, or such other acceptable bank with whom Agent
                           has entered into a satisfactory intercreditor
                           agreement regarding the payment of the purchase price
                           for the SunTrust Drafts and Customer Drafts being
                           sold to such bank.

         (c) Annex E of the Credit Agreement is hereby amended by amending the
first sentence of Section (a) to provide as follows:

                                    "(a) MONTHLY FINANCIALS. To Agent and
                           Lenders, within thirty (30) days after the end of
                           each Fiscal Month (other than January), financial
                           information regarding Borrowers and their
                           Subsidiaries, certified by the chief financial
                           officer or treasurer of Borrower Representative,
                           consisting of consolidated and consolidating (i)
                           unaudited balance sheets as of the close of such
                           Fiscal Month and the related statements of income and
                           cash flows for that portion of the Fiscal Year ending
                           as of the close of such Fiscal Month; (ii) unaudited
                           statements of income and cash flows for such Fiscal
                           Month, setting forth in comparative form the figures
                           for the corresponding period in the prior year and
                           the figures contained in the Projections for such
                           Fiscal Year, all prepared (other than the
                           Projections) in accordance with GAAP (subject to
                           normal year-end adjustments); (iii) a summary of the
                           outstanding balance of all Intercompany Notes as of
                           the last day of that Fiscal Month; (iv) a summary of
                           the total Net Sales as of the last day of that Fiscal
                           Month for such Fiscal Month and for the Fiscal Year
                           to date; and (v) a summary of the Early Draft Sales
                           as of the last day of that Fiscal Month for such
                           Fiscal Month and for the Fiscal Year to date."

                                      -2-
<PAGE>

         (d) Annex G of the Credit Agreement is hereby amended by amending
Section 2(b) in its entirety to provide as follows:

                           "(b) MINIMUM FIXED CHARGE COVERAGE RATIO. Borrowers
                           and their Subsidiaries on a consolidated basis shall
                           have, at the end of each Fiscal Quarter set forth
                           below, a Fixed Charge Coverage Ratio for the 12-month
                           period then ended (or with respect to the Fiscal
                           Quarters ending on or before December 31, 2005, the
                           period commencing on January 1, 2005 and ending on
                           the last day of such Fiscal Quarter) of not less than
                           the following:

                 FISCAL QUARTER                              FIXED CHARGE
                 ENDING                                      COVERAGE RATIO
                 ------                                      --------------
                 June 30, 2005                               1.10 to 1.00

                 September 30, 2005                          1.10 to 1.00

                 December 31, 2005 and each                  1.10 to 1.00"
                 Fiscal Quarter ending
                 thereafter

         4. CONDITIONS OF EFFECTIVENESS. This Amendment shall become effective
as of the date upon which Agent shall have received (i) ten (10) copies of this
Amendment executed by Borrowers, Requisite Lenders and each of the Guarantors,
and (ii) payment of an amendment fee of $100,000 which shall be paid to Agent
for the ratable benefit of those Lenders that execute this Amendment on or
before May 9, 2005 (which fee shall be charged by Agent to the Revolving Loan
balance).

         5. REPRESENTATIONS AND WARRANTIES. Borrowers hereby represent and
warrant as follows:

         (a) This Amendment and the Credit Agreement, as amended hereby,
constitute legal, valid and binding obligations of Borrowers and are enforceable
against Borrowers in accordance with their respective terms.

         (b) Upon the effectiveness of this Amendment, each Borrower hereby
reaffirms all covenants, representations and warranties made in the Credit
Agreement as amended hereby and agree that all such covenants, representations
and warranties shall be deemed to have been remade as of the effective date of
this Amendment.

         (c) No Event of Default or Default has occurred and is continuing or
would exist after giving effect to this Amendment.

         (d) Borrowers have no defense, counterclaim or offset with respect to
the Credit Agreement.

                                      -3-
<PAGE>

         6. NO WAIVER. The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of Agent
or any Lender, nor constitute a waiver of any provision of the Credit Agreement,
or any other documents, instruments or agreements executed and/or delivered
under or in connection therewith.

         7. EFFECT ON THE CREDIT AGREEMENT. All references in the Credit
Agreement and the other Loan Documents to the Credit Agreement shall be deemed
to refer to the Credit Agreement as amended hereby.

         8. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK (WITHOUT GIVING EFFECT TO ITS CONFLICTS OF LAW RULES).

         9. HEADINGS. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

         10. COUNTERPARTS; FACSIMILE. This Amendment may be executed in any
number of several counterparts, each of which shall be deemed an original but
all of which together shall constitute one and the same instrument. Any
signature delivered by a party by facsimile transmission shall be deemed to be
an original signature hereto.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -4-
<PAGE>

         IN WITNESS WHEREOF, each of the parties hereto has caused this
Amendment to be executed and delivered by its duly authorized officer as of the
date first set forth above.

                           STANDARD MOTOR PRODUCTS, INC.

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           STANRIC, INC.

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           MARDEVCO CREDIT CORP.

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           GENERAL ELECTRIC CAPITAL
                           CORPORATION,
                           as Agent and Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                       (SIGNATURES CONTINUED ON NEXT PAGE)

                                      -5-
<PAGE>

                           GMAC COMMERCIAL FINANCE LLC,
                           as Documentation Agent and Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           BANK OF AMERICA, N.A.,
                           as Syndication Agent and Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           GE BUSINESS CAPITAL CORPORATION,
                           as Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           CONGRESS FINANCIAL CORPORATION,
                           as Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                       (SIGNATURES CONTINUED ON NEXT PAGE)

                                      -6-
<PAGE>

                           JP MORGAN CHASE BANK,
                           as Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           HSBC BANK USA, NATIONAL ASSOCIATION,
                           as Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           WELLS FARGO FOOTHILL,
                           as Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                           MERRILL LYNCH CAPITAL, a Division of MERRILL LYNCH
                           BUSINESS FINANCIAL SERVICES INC.,
                           as Lender

                           By:
                              --------------------------------------------------
                           Name:
                                ------------------------------------------------
                           Title:
                                 -----------------------------------------------

                       (SIGNATURES CONTINUED ON NEXT PAGE)

                                      -7-
<PAGE>

CONSENTED TO:

SMP MOTOR PRODUCTS LTD.

By:
   --------------------------------------------------
Name:
     ------------------------------------------------
Title:
      -----------------------------------------------

EAGLEMOTIVE CORPORATION

By:
   --------------------------------------------------
Name:
     ------------------------------------------------
Title:
      -----------------------------------------------

MOTORTRONICS, INC.

By:
   --------------------------------------------------
Name:
     ------------------------------------------------
Title:
      -----------------------------------------------

                                      -8-

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