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Exhibit 10(S)  

EXECUTION COPY  

 
 

AMENDMENT NO. 4 TO LOAN AND SECURITY AGREEMENT    
    

        THIS AMENDMENT NO. 4 TO LOAN AND SECURITY AGREEMENT (this
"Amendment"), dated as of June 24, 2004, is made and entered into by and among WELLS FARGO
FOOTHILL, INC., a California corporation ("Lender"), EARL
SCHEIB, INC., a Delaware corporation ("Parent"), and EARL SCHEIB REALTY
CORP., a California corporation ("ES Realty") (Parent and ES Realty are referred to hereinafter collectively, jointly and
severally, as the "Borrower"). Capitalized terms used herein and not otherwise defined shall have the respective meanings ascribed to them in that
certain Loan and Security Agreement entered into as of August 4, 2003 between Lender and Borrower (the "Original Agreement"), as amended as of
August 29, 2003 (the "First Amendment'), February 19, 2004 (the "Second Amendment") and
April 6, 2004 (the "Third Amendment"). 

        WHEREAS, Lender and Borrower desire to enter into this Amendment to amend the Original Agreement as set forth herein, all in accordance
with Sections 15 and 16.6 of the Original Agreement. 

        NOW, THEREFORE, in consideration of the foregoing and of the mutual promises contained herein and for other valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Lender and Borrower hereby amend the Original Agreement as follows: 

        1.     Definition of "Permitted Dispositions". Subsection (e) of the definition of "Permitted Dispositions" in
Section 1 of the Original Agreement shall be deleted in its entirety and replaced by the following: 

        (e)   sales
or other dispositions of the assets (including any Real Property) of Borrower or the Guarantors located in Tempe, Arizona; Bakersfield, California; Denver,
Colorado; South Holland, Illinois; Baltimore, Maryland; Warren, Michigan; West Detroit, Michigan; Fayetteville, North Carolina; Cleveland, Ohio; Dayton, Ohio; Emsworth, Pennsylvania; McKeesport,
Pennsylvania; Houston, Texas; Everett, Washington; Tacoma, Washington; and Charleston, West Virginia. 

        2.     Reference to and Effect Upon the Amended Original Agreement. All of the provisions of this Amendment shall be deemed to be
incorporated in, and made a part of, the Original Agreement, the First Amendment, the Second Amendment and the Third Amendment; and the Original Agreement, as supplemented and amended by the First
Amendment, the Second Amendment, the Third Amendment and this Amendment, shall be read, taken and construed as one and the same agreement. Except as expressly modified herein, the Original Agreement,
the First Amendment, the Second Amendment and the Third Amendment shall remain in full force and effect and are hereby ratified. 

        3.     4.  Governing Law. This Amendment shall be governed by and construed in accordance with the laws of the State
of California without regard to its conflict of laws principles. 

        5.     Counterparts. This Amendment may be executed in any number of counterparts, or facsimile counterparts, each of which shall
be deemed an original, and all of which together shall constitute one and the same instrument. 

        6.     Titles and Subtitles. The titles and subtitles used in this Amendment are used for convenience and are not to be
considered in construing or interpreting this Amendment. 

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        IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed effective as of the day and year fast written above. 

	
BORROWER	
 	
LENDER
	

EARL SCHEIB, INC.,

a Delaware Corporation	
 	

WELLS FARGO FOOTHILL, INC.,

a California corporation
	 	 	 	 	 	 	 
	By:	 	/s/  CHARLES E. BARRANTES      
	 	By:	 	/s/  STEVEN SCHWARTZ      

	Title:	 	Chief Financial Officer
	 	Title:	 	Senior Vice President

	 	 	 	 	 	 	 
	EARL SCHEIB REALTY CORP.,

a California corporation	 	 	 	 
	 	 	 	 	 	 	 
	By:	 	/s/  CHARLES E. BARRANTES      
	 	 	 	 
	Title:	 	Chief Financial Officer
	 	 	 	 

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AMENDMENT NO. 4 TO LOAN AND SECURITY AGREEMENTQuickLinks
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Exhibit 4.3    
    

RLI Corp.

RLI Corp. Nonemployee Directors' Stock Plan  

ARTICLE I

PURPOSE  

        This RLI Corp. Nonemployee Directors' Stock Plan is intended to advance the interests of RLI Corp. and its shareholders by attracting, retaining, compensating and
motivating the performance of nonemployee directors of RLI Corp. and to encourage and enable such directors to acquire and retain a proprietary interest in RLI Corp. by ownership of its stock. 

ARTICLE II

ADMINISTRATION; GRANTS  

        2.1   Board Authority. Subject to the express provisions of the Plan and the powers granted to the Board, the Committee shall
have discretionary authority to interpret the Plan, to prescribe, amend and rescind rules and regulations relating to it, to determine the details and provisions of each Stock Grant, and to make all
the determinations necessary or advisable in the administration of the Plan. All such actions and determinations by the Committee shall be conclusively binding for all purposes and upon all persons.
The Committee shall not be liable for any action or determination made in good faith with respect to the Plan or any Stock Grant under the Plan. 

        2.2   Stock Grants. Each Stock Grant shall be issued in the name of the Nonemployee Director. Upon the issuance of a Stock
Grant, the Nonemployee Director shall be entitled to vote the shares of Common Stock and to receive any dividends paid thereon. 

ARTICLE III

SHARES OF STOCK SUBJECT TO PLAN  

        3.1   Number of Shares. Subject to adjustment pursuant to the provisions of this Section 3.1, the maximum number of
shares of Common Stock which may be issued and sold hereunder shall be 200,000 shares; provided, that in the event of a recapitalization, reclassification, stock dividend, stock split, stock
combination or other relevant change affecting the capitalization of the Company, the number of shares issuable under the Plan shall be appropriately adjusted. Shares of Common Stock issued and sold
under the Plan may be either authorized but unissued shares or shares held in the Company's treasury, which includes shares repurchased in the open market. 

ARTICLE IV

STOCK GRANTS  

        4.1   New Director Fee. From time to time, the Committee shall recommend for approval by the Board the dollar amount of the fee
to be paid to each new Nonemployee Director who joins the Board (the "New Director Fee"). Commencing with the 2004 Annual Meeting, each new Nonemployee Director who joins the Board shall receive a
Stock Grant having a Fair Market Value equal to the New Director Fee, such that the number of shares of Common Stock subject to the Stock Grant shall be equal to the number determined by dividing the
New Director Fee by the Fair Market Value of a share of Common Stock on the date of grant. The Stock Grant shall be made as of the date of the Nonemployee Director's election to the Board. 

        4.2   Annual Fee. From time to time, the Committee shall recommend for approval by the Board the dollar amount of the fee to be
paid to each Nonemployee Director for service during the fiscal year (the "Annual Fee"). For each fiscal quarter ending during the fiscal year, the Company shall issue to each Nonemployee Director a
Stock Grant having a Fair Market Value equal to one-fourth of the Annual Fee (the "Quarterly Fee"), such that the number of shares of Common Stock subject to such Stock Grant shall be
equal to the number determined by dividing the Quarterly Fee by the Fair Market Value of a share of Common Stock on the date of grant. Stock Grants issued as payment of the Quarterly Fee shall be made
on the tenth calendar day prior to the end of each fiscal quarter, provided that if such grant date falls on a weekend or a holiday, the grant date shall be the immediately preceding business day. If
a Nonemployee Director is elected or terminated (other than removal for cause) during the fiscal quarter, the Nonemployee Director shall receive a Stock Grant equal to the Quarterly Fee 

times
a fraction, the numerator of which is the number of days during such quarter that the Nonemployee Director serves as a director and the denominator of which is 90. 

        4.3   2004 Transition Year. The Annual Fee for the 2004 fiscal year, as recommended by the Committee and approved by the Board,
shall be made in two grants, each of which shall be one-half of the Annual Fee, on the issuance dates (as determined under Section 4.2 above) for the quarters ending
September 30, 2004 and December 31, 2004. 

        4.4   Discretionary Grants. In addition to the automatic grants provided for above, the Committee may recommend for Board
approval discretionary Stock Grants to any Nonemployee Director in accordance with the provisions of this Section 4.4. The Committee shall select the Nonemployee Directors who will receive any
such Stock Grants under this Section 4.4 and determine the number of shares subject to any such Stock Grant, which shall be subject to Board approval. 

        4.5   Fractional Shares. The Company shall not be required to issue fractions of shares of Common Stock. Whenever under the
terms of the Plan a fractional share would be required to be issued, an amount in lieu thereof shall be paid in cash for such fractional share based upon the same Fair Market Value as was utilized to
determine the number of shares to be issued on the relevant issuance date. 

ARTICLE V

EFFECTIVE DATE, TERMINATION AND AMENDMENT  

        5.1   Effective Date. The Plan shall become effective after its adoption by the Board and on the date of its approval by the
shareholders of the Company in accordance with applicable state law, the Articles of Incorporation and By-laws of the Company and the rules of the NYSE. 

        5.2   Termination. The Plan shall terminate on the date of the Annual Meeting in 2014, provided that the Board may at any time
terminate the Plan earlier. Notwithstanding the foregoing, no termination of the Plan shall in any manner affect any previously issued Stock Grant without the consent of the Nonemployee Director who
received the Stock Grant. 

        5.3   Amendment. The Board may at any time and from time to time and in any respect, amend or modify the Plan; provided,
however, that shareholder approval shall be required to the extent necessary to comply with the rules of NYSE. Notwithstanding the foregoing, no amendment or modification of the Plan shall in any
manner affect any previously issued Stock Grant without the consent of the Nonemployee Director who received the Stock Grant. 

ARTICLE VI

MISCELLANEOUS  

        6.1   Rights as Shareholder. Nothing contained herein relating to any grant of a Stock Grant shall create an obligation on the
part of the Company to repurchase any shares of Common Stock granted hereunder. 

        6.2   Service on Board. Nothing in the Plan or any Stock Grant shall confer upon any Nonemployee Director the right to continue
service as a member of the Board, nor shall it create any obligation on the part of the Board or the Committee to nominate any Nonemployee Director for reelection by the Company's shareholders. 

        6.3   Compliance with Law. The Plan and the obligations of the Company to issue or transfer shares of Common Stock as Stock
Grants shall be subject to all applicable laws and regulations and to approvals by any governmental or regulatory agency as may be required. The Committee may revoke a Stock Grant if it is contrary to
law or modify a Stock Grant to bring it into compliance with any valid and mandatory law or government regulation. 

        6.4   Plan Binding on Successors. The Plan shall be binding upon the Company, its successors and assigns, and each Nonemployee
Director, such Nonemployee Director's executor, administrator and transferees. 

        6.5   Construction and Interpretation. Whenever used herein, nouns in the singular shall include the plural, and the masculine
pronoun shall include the feminine gender. Headings of Articles and Sections hereof are inserted for convenience and reference and constitute no part of the Plan. 

        6.6   Severability. If any provision of the Plan or any Stock Grant shall be determined to be illegal or unenforceable by any
court of law in any jurisdiction, the remaining provisions hereof and thereof shall be severable and enforceable in accordance with their terms, and all provisions shall remain enforceable in any
other jurisdiction. 

        6.7   Governing Law. The validity and construction of the Plan and of any Stock Grant shall be governed by the laws of the
State of Illinois. 

ARTICLE VII

DEFINITIONS  

        7.1   "Annual Fee" shall have the meaning set forth in Section 4.2. 

        7.2   "Annual Meeting" means an Annual Meeting of Shareholders of the Company. 

        7.3   "Board" means the Board of Directors of the Company. 

        7.4   "Committee" means the Nominating/Corporate Governance Committee of the Board. 

        7.5   "Common Stock" means the Company's common stock. 

        7.6   "Company" means RLI Corp. 

        7.7   "Fair Market Value" means the average of the highest and lowest sale prices of a share of Common Stock on the NYSE on the
date as of which fair market value is to be determined or, in the absence of any reported sales of Common Stock on such date, on the first preceding date on which any such sale shall have been
reported. If Common Stock is not listed on the NYSE on the date as of which fair market value is to be determined, the Board shall determine in good faith the fair market value in whatever manner it
considers appropriate. 

        7.8   "New Director Fee" shall have the meaning set forth in Section 4.1. 

        7.9   "Nonemployee Director" means any member of the Board who is not an employee of the Company. 

        7.10 "NYSE" means the New York Stock Exchange. 

        7.11 "Plan" means this RLI Corp. Nonemployee Directors' Stock Plan. 

        7.12 "Quarterly Fee" shall have the meaning set forth in Section 4.2 

        7.13 "Stock Grant" means a grant of Common Stock under the Plan. 

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Exhibit 4.3

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