Document:

Exhibit 4.10

    
      

    

    Exhibit
      4.10

     

    
 

    THIRD
      AMENDMENT TO REVOLVING CREDIT AGREEMENT 

    

    

    THIS
      THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT
      ("Amendment") is dated effective as of April 28, 2006, by and among AMERICA’S
      CAR MART, INC.,
      an
      Arkansas corporation and TEXAS
      CAR-MART, INC.,
      a Texas
      corporation (separately and collectively, “Borrower”) and BANK
      OF OKLAHOMA, N.A.
      (“Bank”).

    

    

    RECITALS

    

    A.    Reference
      is made to the Revolving Credit Agreement dated as of June 23, 2005, and amended
      by the First Amendment to Revolving Credit Agreement, dated effective as of
      June
      23, 2005, and executed August 19, 2005, and the Second Amendment to Revolving
      Credit Agreement, dated effective as of September 30, 2005 (as amended, the
      "ACM
      Credit Agreement"), by and among Borrowers and Bank, pursuant to which the
      Bank
      established a $10,000,000 Revolving Line of Credit in favor of Borrower for
      the
      purpose of refinancing existing indebtedness and for working capital needs
      and
      general business purposes.

    

    B.    Borrower
      has requested that Bank establish a $10,000,000 term loan in favor of Borrower;
      and Bank has agreed to accommodate Borrower’s request, subject to the terms and
      conditions hereof. Terms used herein shall have the meanings given in the ACM
      Credit Agreement unless otherwise defined herein.

    

    AGREEMENT

    

    For
      valuable consideration received, the parties agree to the
      following.

    

    1.    Amendments
      to ACM Credit Agreement.
      The ACM
      Credit Agreement is amended as follows.

    

    1.1.    In
      Section 1.01 (Defined Terms), the definitions of “Borrowing Base” and “Borrowing
      Base Certificate” are hereby deleted in their entirety.

    

    1.2.    In
      Section 1.01 (Defined Terms), the definition of “Collateral” is hereby deleted
      and replaced with the following:

    

    “’Collateral’
      means all property which is subject or is to be subject to the Liens granted
      by
      the Security Agreement-Borrower, the Security Agreement-Colonial, and the
      Mortgages.”

    

    1.3.    In
      Section 1.01 (Defined Terms), the definition of “Commitment” is hereby deleted
      and replaced with the following:

    

    “’Commitment’
      means the Bank’s obligation to make Revolving Credit Loans to the Borrower
      pursuant to Section 2.01(a) hereof in the amount of $10,000,000.”

    

    1.4.    In
      Section 1.01 (Defined Terms), the definition of “Loan Documents” is hereby
      deleted and replaced with the following:

    

    “’Loan
      Documents’ means this Agreement, the Note, the Security Agreement-Borrower, the
      Security Agreement-Colonial, the Guaranty, and the Mortgages, and any
      extensions, modifications, and amendments thereto.”

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    1.5.    In
      Section 1.01 (Defined Terms), the definition of “Note” is hereby deleted and
      replaced with the following:

    

    “’Note’
      means, separately and collectively, the Revolving Credit Note and the Term
      Note.”

    

    1.6.    New
      defined terms are hereby added to Section 1.01 (Defined Terms), as
      follows:

    

    “’Colonial
      Credit Agreement’ means the Amended and Restated Agented Revolving Credit
      Agreement between Colonial and Bank of Arkansas, N.A., et al., dated June 23,
      2005, and subsequently amended from time to time.

    

    ’Mortgages’
      means, separately and collectively, the mortgage/deed of trust documents
      covering each of the Mortgaged Properties, in form and content as set forth
      on
Exhibit
      ‘L’.

    

    ‘Mortgaged
      Property’ means, separately and collectively, the tracts of real property
      described on Exhibit
      ‘M’
      hereto.

    

    ‘Revolving
      Credit Note’ means the $10,000,000 Promissory Note evidencing the Revolving
      Credit Loans.

    

    ‘Term
      Loan’ means the loan described in Section 2.01(b) hereof.

    

    ‘Term
      Note’ means the $10,000,000 Promissory Note evidencing the Term
      Loan.”

    

    1.7.    Section
      2.01 (Revolving Credit) is hereby deleted and replaced with the
      following:

    

    “Section
      2.01(a). Revolving Credit.
      The Bank
      agrees, on the terms and conditions hereinafter set forth, to make the Revolving
      Credit Loans to the Borrower from time to time during the period from the date
      of this Agreement up to but not including the Termination Date in an aggregate
      principal amount not to exceed at any time outstanding the Commitment provided,
      that the aggregate outstanding principal amount of advances at any time
      outstanding shall not exceed the amount of the Commitment. Within the limits
      of
      the Commitment, the Borrower may borrow, repay and reborrow under this
Section
      2.01(a).
      On such
      terms and conditions, the Revolving Credit Loans may be outstanding as Prime
      Loans or LIBOR Loans. Each type of Revolving Credit Loan shall be made and
      maintained at the Bank’s Lending Office for such type of Loan.

    

    Section
      2.01(b). Term Loan.
      Subject
      to the terms and conditions of this Agreement, the Bank agrees to loan Borrower
      $10,000,000, to be further evidenced by the Term Note. The purpose of the
      advance under the Term Note is to enable Borrower to reduce a portion of the
      Borrower’s/Guarantor’s existing revolving credit facilities, and one hundred
      percent (100%) of the proceeds of the Term Loan shall be used to reduce said
      facilities.”

    

    1.8.    Section
      2.03 (Interest) is amended to reflect that a new subsection (3) is hereby added
      at the end of said section, as follows:

    

    “(3) For
      the
      Term Loan, as set forth in the Term Note.”

    

    1.9.    Section
      2.06 (Note) is hereby deleted and replaced with the following:

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    

    “Section
      2.06. Note.
      The
      Revolving Credit Loan made by the Bank under this Agreement shall be evidenced
      by, and repaid with interest in accordance with, the Revolving Credit Note,
      in
      form and content as set forth on Exhibit
      “D”
      hereto,
      duly completed, and payable to the Bank for the account of its applicable
      Lending Office, such Revolving Credit Note to represent the obligation of the
      Borrower to repay the Revolving Credit Loan. The Bank is hereby authorized
      by
      the Borrower to endorse on the schedule attached to the Revolving Credit Note
      held by it the amount and type of each Revolving Credit Loan and each renewal,
      conversion, and payment of principal amount received by the Bank for the account
      of its applicable Lending Office on account of its Revolving Credit Loans,
      which
      endorsement shall, in the absence of manifest error, be conclusive as to the
      outstanding balance of the Revolving Credit Loans made by the Bank; provided,
      however, that the failure to make such notation with respect to any Revolving
      Credit Loan or renewal, conversion, or payment shall not limit or otherwise
      affect the obligations of the Borrower under this Agreement or the Revolving
      Credit Note held by the Bank.

    

    The
      aggregate principal balance and all accrued interest of all Revolving Credit
      Loans shall be repaid on the Termination Date.

    

    The
      Term
      Loan made by the Bank under this Agreement shall be evidenced by and repaid
      with
      interest in accordance with the Term Note, in form and content as set forth
      on
Exhibit
      “N”
      hereto,
      duly completed and payable to the Bank for the account of its applicable Lending
      Office, such Term Note to represent the obligation of the Borrower to repay
      the
      Term Loan.”

    

    1.10.    Section
      2.08 (Use of Proceeds) is hereby deleted and replaced with the
      following:

    

    “Section
      2.8. Use of Proceeds.
      The
      proceeds of the Revolving Credit Loan hereunder shall be used by the Borrower
      to
      finance working capital requirements and repay certain existing indebtedness.
      The Borrower will not, directly or indirectly, use any part of such proceeds
      for
      the purpose of purchasing or carrying any margin stock within the meaning of
      Regulation U of the Board of Governors of the Federal Reserve System or to
      extend credit to any Persons for the purpose of purchasing or carrying any
      such
      margin stock, or for any purpose which violates, or is inconsistent with,
      Regulation X of such Board of Governors.

    

    The
      proceeds of the Term Loan hereunder shall be used as set forth in Section
      2.01(b) hereof.”

    

    1.11.    Section
      2.14 (Termination Fee) is hereby deleted and replaced with the
      following:

    

    “Section
      2.14. Termination Fee. The
      Borrower may terminate Bank’s Revolving Credit Commitment under this Agreement
      at any time upon not less than ten (10) Business Day’s notice to Bank of such
      intention, provided, that all monetary obligations (e.g. payment of Note) and
      any indemnification shall continue; and provided further that Borrower agrees
      to
      pay to the Bank a termination fee in an aggregate amount equal to $10,000 in
      the
      event the Revolving Credit Commitment is terminated for any reason prior to
      nine
      (9) months from the execution date hereof; provided, that no termination fee
      shall be payable for any prepayment if the Borrower is required to make any
      payments under Sections
      2.11 and/or 2.12.”

    

    1.12.    Section
      7.03 (Minimum Tangible Net Worth) is hereby deleted and replaced with the
      following:

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    

    “Section
      7.03. Minimum
      Tangible Net Worth.
      Borrower
      shall maintain at all times a minimum Adjusted Tangible Net Worth as of the
      last
      day of each fiscal quarter equal to or greater than the sum of (i) the greater
      of (A) eighty-five percent (85%) of the Adjusted Tangible Net Worth as of July
      31, 2005 and (B) $5,000,000, plus
      (ii)
      seventy-five percent (75%) of positive quarterly Net Income and (iii) one
      hundred percent (100%) of any subsequent equity issuances less
      Distributions permitted under Section 6.06 hereof.”

    

    2.    Conditions
      Precedent.
      The
      obligations of the Bank to perform under the ACM Credit Agreement, as amended
      hereby, are subject to the satisfaction of the following.

    

    2.1.    Borrower
      shall execute and deliver this Amendment, and all schedules hereto.

    

    2.2.    Borrower
      shall execute and deliver the Term Note, in form and content as set forth on
      Schedule
      “2.2”
      hereto.

    

    2.3.    Borrower
      shall execute and deliver the Mortgages, in form and content as set forth on
      Schedule
      “2.3”
      hereto.

    

    2.4.    Borrower
      shall deliver title searches on each of the Mortgaged Properties, in a form
      acceptable to Bank, which searches must evidence no conflicting security
      interests on any of the Mortgaged Properties.

    

    2.5.    Borrower
      shall pay to Bank a closing fee in the amount of $2,500.00.

    

    2.6.    Borrower
      shall execute and deliver any other instruments, documents and/or agreements
      reasonably required by Bank in connection herewith.

    

    2.7.    No
      Default or Event of Default exists or will result from the execution and
      delivery of this Amendment.

    

    3.    Recording
      of Mortgages.
      Each of
      the Mortgages shall be recorded in the land records of the appropriate county
      and state within ninety (90) days of the date of this Amendment. Failure to
      comply with this Section 3, other than a failure resulting from an act or
      failure to act by Bank or its representative, shall be a Default under the
      ACM
      Credit Agreement.

    

    4.    Substitution
      of Mortgaged Property.
      Bank
      agrees that Borrowers shall have the option to substitute portions of the
      Mortgaged Property in the event a property is closed or relocated, provided
      that
      the property to be added as collateral shall have a value equal to or greater
      than the property being released. In the event Borrower requests the release
      of
      one of the Mortgaged Properties but has no available substitute property, a
      release of such Mortgaged Property will be granted provided the value (defined
      at original purchase price) of the remaining properties equals not less than
      ninety percent (90%) of the outstanding principal balance on the Term
      Loan.

    

    5.    Representations
      and Warranties.
      Each of
      the Borrower and the Guarantors, respectively, hereby ratify and confirm all
      representations and warranties set forth in Article IV of the ACM Credit
      Agreement, Section 8 of the Security Agreement, and Sections 24 through 29
      of
      the Guaranty Agreement other than any representation or warranty that relates
      to
      a specific prior date and except to the extent that the Bank has been notified
      in writing by the Borrower that any representation or warranty is not correct
      and the Bank has explicitly waived in writing compliance with such
      representation or warranty.

    

    6.    Ratification.
      Borrower hereby ratifies and confirms the ACM Credit Agreement, and all
      instruments, documents, and agreements executed by and in connection
      therewith.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    

    7.    Ratification
      and Amendment of Security Agreements.
      Each
      Borrower and Colonial hereby (i) ratifies and confirms its respective Security
      Agreement, and (ii) acknowledges and agrees that its said Security Agreement
      is
      hereby amended to evidence that the “Obligations” secured thereby shall include
      the $10,000,000 Revolving Credit Note and the $10,000,000 Term
      Note.

    

    8.    Ratification
      and Amendment of Guaranties.
      ACM-Texas and Colonial each hereby (i) ratifies and confirms its respective
      Guaranty, (ii) acknowledges and agrees that its said Guaranty is hereby amended
      to evidence that the aggregate amount of the Loan and Note, as defined therein,
      shall now be $20,000,000, and that such amount shall include the $10,000,000
      Term Loan and $10,000,000 Term Note, and (iii) acknowledges and agrees that
      its
      respective Guaranty fully guarantees the $10,000,000 Term Note, and the
      $10,000,000 Revolving Credit Note.

    

    9.    Ratification
      and Amendment of Subordination Agreements.
      ACM-Texas and Colonial each hereby (i) ratifies and confirms its respective
      Subordination Agreement, (ii) acknowledges and agrees that its respective
      Subordination Agreement is hereby amended to evidence that the aggregate amount
      of the Loan and Note, as defined therein, shall now be $20,000,000, (iii)
      acknowledges and agrees that the Superior Obligations and Superior Liens, as
      defined in its respective Subordination Agreement, shall now include the
      $10,000,000 Term Note and the $10,000,000 Revolving Credit Note, and (iv)
      acknowledges and agrees that its respective Subordinate Obligations and
      Subordinate Liens are subordinate to the $10,000,000 Term Note and $10,000,000
      Revolving Credit Note.

    

    10.       
      Paying
      Agent.
      Bank
      and Borrower hereby acknowledge and agree that Bank of Arkansas, N.A., shall
      be
      designated as paying agent for Bank. All payments which are to be made to Bank
      under the terms of the ACM Credit Agreement and other Loan Documents shall
      be
      made to Bank of Arkansas, N.A. as paying agent.

    

    11.       
      Governing
      Law.
      This
      Agreement and the Note shall be governed by, and construed in accordance with,
      the laws of the State of Arkansas.

    

    12.       
      Multiple
      Counterparts.
      This
      Amendment may be executed in any number of counterparts, and by different
      parties to this Amendment in separate counterparts, each of which when so
      executed shall be deemed to be an original and all of which taken together
      shall
      constitute one and the same agreement.

    

    13.       
      Costs,
      Expenses and Fees.
      Borrower agrees to pay all costs; expenses and fees incurred by Banks in
      connection herewith, including without limitation the reasonable attorney fees
      of Riggs, Abney, Neal, Turpen, Orbison and Lewis.

     

     

    
      	 	
              “BORROWER”

              

              AMERICA’S
                CAR MART, INC.,
                an Arkansas corporation 

              

              

              By
                /s/ Jeff Williams 

                   
                Jeff Williams, Vice President

            

    

    

     

     

     

     

     

     

     

    
 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    

    
      	 	
              TEXAS
                CAR-MART, INC.,
                a
                Texas corporation

              

              

              By
                /s/ Jeff Williams

                   
                Jeff Williams, Vice President

              

              "GUARANTOR"
                and “SUBORDINATING PARTY”

              

              AMERICA’S
                CAR-MART, INC.,
                a
                Texas corporation, formerly known as Crown Group, Inc.

              

              

              By
                Jeff Williams

                    
                Jeff Williams, Vice President

              

              

              COLONIAL
                AUTO FINANCE, INC.,
                

              an
                Arkansas corporation

              

              

              By
                /s/ T. J. Falgout, III

                    
                Tilman J. Falgout, III, President

              

              

              “BANK”
                

              

              BANK
                OF OKLAHOMA, N.A.

              

              

              

              By
                /s/ Jeffrey R. Dunn

                    
                Jeffrey R. Dunn, Vice President

            

    

     

     

     

     

    

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

    

    Schedule
      “1.6”

    

    [Exhibit
      “M” to the ACM Credit Agreement]

    

    (Mortgaged
      Property)

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Schedule
      “2.2”

    

    [Exhibit
      “N” to the ACM Credit Agreement]

    

    (Term
      Note)

     

     

     

     

     

     

     

     

     

     

    
 

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    Schedule
      “2.3”

    

    [Exhibit
      “L” to the ACM Credit Agreement]

    

    (Mortgages)

    
 

     

     

     

     

     

     

     

     

     

    9Exhibit 4.11

    
      

    

     

    Exhibit
      5.1

     

     

    

    PROMISSORY
      NOTE

    

    
      	 	
              April
                28, 2006

            
	
              $10,000,000

            	
              Fayetteville,
                Arkansas

            

    

    

    FOR
      VALUE
      RECEIVED, the undersigned, AMERICA’S
      CAR MART, INC.,
      an
      Arkansas corporation and TEXAS
      CAR-MART, INC.,
      a Texas
      corporation (separately and collectively, the “Maker”), promise, jointly and
      severally, to pay to the order of BANK
      OF ARKANSAS, N.A.,
      as
      paying agent for BANK
      OF OKLAHOMA, N.A., (the
      “Lender”) at 3500 N. College, Fayetteville, Arkansas 72702, in lawful money of
      the United States and in immediately available funds, the principal sum of
      TEN
      MILLION AND NO/100 DOLLARS ($10,000,000) under the terms of the Revolving Credit
      Agreement between Maker and Lender dated June 23, 2005, and subsequently amended
      from time to time (as amended, the “Credit Agreement”), payable as
      follows:

    

    Principal
      and interest shall be payable in One Hundred Twenty (120) consecutive and
      substantially equal installments on the 1st
      day of
      each month, commencing the 1st
      day of
      June, 2006, with each installment except the last equal to $117,825.00, and
      the
      last installment, due May 1, 2016 equal to the remaining balance of principal
      and interest hereunder. Interest shall accrue on the principal balance
      outstanding hereunder and on any past due interest hereunder at a rate at all
      times equal to 7.33% per annum, fixed.

    

    Such
      installment payments are to be applied first to the payment of interest on
      the
      principal balance from time to time remaining unpaid at the aforesaid rate,
      and
      any balance shall be used to reduce the principal balance; except that if any
      advances made by the holder hereof under the terms of any instrument, document
      or agreement executed by Maker in connection herewith have not been repaid,
      any
      monies received may, at the option of holder, be applied first to repay such
      advances and interest thereon, and the balance, if any, applied to any
      installment then due. Any prepayments shall be applied to installments in the
      inverse order of occurrence.

    

    As
      a
      condition to Borrower's prepayment of this Promissory Note in accordance with
      its terms, either in whole or in part, or in the event the Lender accelerates
      the maturity of Borrower's obligations as herein provided, Borrower shall be
      obligated to pay to the Lender, in addition to the remaining balance of this
      Promissory Note plus accrued and unpaid interest and all other costs and fees
      to
      which the Lender is otherwise entitled, a prepayment fee which shall be equal
      to
      a yield maintenance fee. The yield maintenance fee is the sum of the present
      value (discounted at the "Interest Rate Swaps Rate" as defined below) of the
      excess of a) the remaining scheduled interest payments to be paid on the
      prepayment amount through maturity, less b) the interest payments which would
      be
      collected on a new loan of the same principal amount and remaining maturity
      as
      the amount prepaid at the current fixed rate on the day of prepayment. (Current
      fixed rate means the rate equal to the sum of i) the "Interest Rate Swaps Rate"
      (where the "Interest Rate Swaps Rate" is defined as the interest rate swaps
      rate
      for the term closest in time to the remaining term of the Note on the date
      preceding prepayment, as such rate has most recently been published by the
      Federal Reserve Bank on its website under Federal Reserve Statistical Release
      H.15, as the International Swaps and Derivatives Association ("ISDA") mid-market
      par swap rate), plus ii) the original spread, (defined as the difference between
      the stated fixed rate on the loan minus the Interest Rate Swaps Rate for the
      term closest in time to the date the loan was made.) In the event the Federal
      Reserve Board fails to publish information from the ISDA concerning the
      mid-market par swap rate, the parties shall refer to the source of such
      information (as set forth in footnote 15 of the Federal Reserve Statistical
      Release H.15 as published on October 2, 2000) in order to determine the Interest
      Rate Swaps Rate. NOTWITHSTANDING
      THE ABOVE, BORROWER MAY PREPAY AN AGGREGATE AMOUNT HEREUNDER UP TO $3,000,000
      ON
      OR BEFORE APRIL 28, 2011, WITH PAYMENT OF A REDUCED PREPAYMENT FEE AS DESCRIBED
      FURTHER ON EXHIBIT
      “A”
      HERETO.

    

    
      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

    

    

    

    

    If
      any
      payment shall be due on a Saturday or Sunday or upon any other day on which
      state or national banks in the State of Arkansas are closed for business by
      virtue of a legal holiday for such banks, such payment shall be due and payable
      on the next succeeding banking day and interest shall accrue to such day. All
      interest due hereon shall be computed on the actual number of days elapsed
      (365
      or 366) based upon a three hundred sixty (360) day year.

    

    All
      payments under this Note shall be made in legal tender of the United States
      of
      America or in other immediately available funds at Lender’s office described
      above, and no credit shall be given for any payment received by check, draft
      or
      other instrument or item until such time as the holder hereof shall have
      received credit therefor from the holder’s collecting agent or, in the event no
      collecting agent is used, from the bank or other financial institution upon
      which said check, draft or other instrument or item is drawn.

    

    From
      time
      to time the maturity date of this Note may be extended or this Note may be
      renewed, in whole or in part, or a new note of different form may be substituted
      for this Note and/or the rate of interest may be changed, or changes may be
      made
      in consideration of loan extensions, and the holder, from time to time, may
      waive or surrender, either in whole or in part, any rights, guarantees, security
      interests or liens given for the benefit of the holder in connection herewith;
      but no such occurrences shall in any manner affect, limit, modify or otherwise
      impair any rights, guarantees or security of the holder not specifically waived,
      released or surrendered in writing, nor shall any maker, guarantor, endorser
      or
      any person who is or might be liable hereon, either primarily or contingently,
      be released from such liability by reason of the occurrence of any such event.
      The holder hereof, from time to time, shall have the unlimited right to release
      any person who might be liable hereon; and such release shall not affect or
      discharge the liability of any other person who is or might be liable hereon.
      

    

    If
      any
      payment required by this Note to be made is not made within five (5) business
      days when due, or if any other Event of Default occurs under the Credit
      Agreement, the Lender may, at its option, pursuant to the Credit Agreement,
      declare this Note in default and all indebtedness due and owing hereunder
      immediately due and payable. Interest from the date of the Event of Default
      on
      such principal balance and on any past due interest hereunder shall accrue
      at
      the rate of two percent (2%) per annum above the nondefault interest rate
      accruing hereunder. The Maker and any endorsers, guarantors and sureties hereby
      severally waive protest, presentment, demand, and notice of protest and
      nonpayment in case this Note or any payment due hereunder is not paid when
      due;
      and they agree to any renewal, extension, acceleration, postponement of the
      time
      of payment, substitution, exchange or release of collateral and to the release
      of any party or person primarily or contingently liable without prejudice to
      the
      holder and without notice to the Maker or any endorser, guarantor or surety.
      Maker and any guarantor, endorser, surety or any other person who is or may
      become liable hereon will, on demand, pay all costs of collection, including
      reasonable attorney fees of the holder hereof in attempting to enforce payment
      of this Note and reasonable attorney fees for defending the validity of any
      document securing this Note as a valid first and prior lien.

    

    Upon
      the
      occurrence of any default hereunder, Lender shall have the right, immediately
      and without further action by it, to set off against this Note all money owed
      by
      Lender in any capacity to the Maker or any guarantor, endorser or other person
      who is or might be liable for payment hereof, whether or not due, and also
      to
      set off against all other liabilities of Maker to Lender all money owed by
      Lender in any capacity to Maker; and Lender shall be deemed to have exercised
      such right of setoff and to have made a charge against such money immediately
      upon the occurrence of such default even though such charge is made or entered
      into the books of Lender subsequently thereto.

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    

    The
      holder of this Note may collect a late charge not to exceed an amount equal
      to
      five percent (5%) of the amount of any payment (not to exceed $100.00) which
      is
      not paid within ten (10) days from the due date thereof, for the purposes of
      covering the extra expenses involved in handling delinquent payments. This
      late
      charge provision shall not be applicable in the event the holder hereof, at
      its
      option, elects to receive interest at the increased rate as provided hereunder
      in the event of default.

    

    Lender
      and Maker intend that the extension of credit evidenced hereby shall conform
      strictly to the usury laws applicable to this transaction. Notwithstanding
      any
      provision of this Note, or any other Loan Document, if at any time this
      transaction is construed or administered so as to be usurious under applicable
      law except for the applicability of this paragraph, Lender and Maker agree
      that
      the total of all consideration which constitutes interest under applicable
      law
      that is contracted for, charged, or received under this Note, or any of the
      Loan
      Documents shall under no circumstances exceed the amount permissible under
      such
      applicable usury laws, and any excess interest shall be cancelled without
      further action by Maker or Lender or, if theretofore paid by Maker, at the
      option of the holders of the Note, such excess shall be credited on the unpaid
      portion of the Note or refunded to Maker. Determination of the rate of interest
      for the purpose of determining whether this extension of credit is usurious
      under applicable law shall be made by amortizing, prorating, allocating, and
      spreading, in equal parts during the full stated term of the Note, all interest
      at any time contracted for, charged, or received from Maker prior to its stated
      maturity, whether as a result of voluntary prepayment, acceleration of maturity,
      or otherwise, and if the interest paid for the actual period of the existence
      of
      the extension of credit evidenced therein exceeds the maximum amount permissible
      pursuant to applicable law, the Lender shall refund the amount of such excess
      to
      Maker.

    

    This
      Note
      is given for an actual loan of money for business purposes and not for personal,
      agricultural or residential purposes, and is executed and delivered in the
      State
      of Arkansas and shall be governed by and construed in accordance with the laws
      of the State of Arkansas.

    

    

    

    [Signature
      page to follow]

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    

    
      	 	
              AMERICA’S
                CAR MART, INC.,
                an Arkansas

              corporation
                

              

              

              By
                /s/ Jeff Williams 

                  
                Jeff Williams, Vice President

              

              

              TEXAS
                CAR-MART, INC.,
                a
                Texas

              corporation

              

              

              By
                /s/ Jeff Williams

                  
                Jeff Williams, Vice President

            

    

     

     

     

    

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    EXHIBIT
      “A”

    

    In
      the
      event the Maker elects to prepay the loan on or before April 28, 2011, the
      first
      $3,000,000 of the loan outstanding to be prepaid will be subject to a
modified
      yield
      maintenance fee (“YMF”) as calculated by the Lender in its sole discretion.

    

    In
      calculating the YMF as described in the Promissory Note, Lender shall exclude
      from the calculation's cash flow the proportional amortized component
      representing $3,000,000 initial principal balance out to the 60th monthly period
      from the effective date of the loan.

    

    By
      way of
      example, the below charts fairly represent the typical calculation to be
      determined by the Lender. The second chart incorporates a lower modified yield
      maintenance fee by factoring in a reduced or modified YMF on the first
      $3,000,000 of the amount to be prepaid. Please
      be advised the loan rate used in the below example may not be the actual
      interest rate and is only being used for illustrative purposes
      only. 

     

     

    

      
        	
                Yield
                  Maintenance Matrix

              	 	 	 
	
                Sample
                  Yield Maintenance Fee Calculations

              	 	 	 

      

       

      
        	 	 	 	 
	
                Loan
                  Amount:

              	 	
                $

              	
                10,000,000

              	 
	
                Loan
                  Rate:

              	
                 

              	 	
                7.09

              	
                %

              
	
                Loan
                  Term:

              	
                 

              	 	
                10
                  

              	 
	
                Amort
                  Term:

              	 	 	
                10
                  

              	 

      

    

     

     

    

     

     

     

     

     

    5

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