Document:

Exhibit 4.1

    
      

    

     

    

      EXHIBIT
        4.1

    

    
 

    FIRST
      AMENDMENT TO AMENDED AND RESTATED AGENTED

    REVOLVING
      CREDIT AGREEMENT 

    

    

    THIS
      FIRST AMENDMENT TO AMENDED AND RESTATED AGENTED REVOLVING CREDIT
      AGREEMENT
      ("Amendment") is dated effective as of September 30, 2005, by and
      among
      COLONIAL AUTO FINANCE, INC.,
      an
      Arkansas corporation (“Borrower”), BANK
      OF ARKANSAS, N.A.,
      GREAT
      SOUTHERN BANK,
      FIRST
      STATE BANK, BANK OF OKLAHOMA, N.A.,
      FIRST
      STATE BANK OF NORTHWEST ARKANSAS and
      SOVEREIGN BANK,
      and one
      or more additional lenders to be determined at a later date (“Additional
      Lender”) (individually a “Bank” and collectively the “Banks”), and BANK
      OF ARKANSAS, N.A.,
      as
      agent for the Banks hereunder (in such capacity the “Agent”).

    

    

    RECITALS

    

    A.       
      Reference
      is made to the Amended and Restated Agented Revolving Credit Agreement dated
      as
      of June 23, 2005 ("Credit Agreement"), by and among Borrower, Bank (as defined
      in the Credit Agreement), Agent and Bank of Oklahoma, N.A. as Paying Agent
      pursuant to which a $34,500,000 Revolving Line of Credit was established in
      favor of Borrower.

    

    B.       
      Borrower
      has requested that Bank extend the maturity date of the $34,500,000 Revolving
      Line of Credit; 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 Credit Agreement unless otherwise defined herein.

    

    AGREEMENT

    

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

    

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

    

    1.1.  The
      Credit Agreement is hereby amended to evidence that effective as of the date
      hereof, Liberty Bank of Arkansas and Arvest Bank (“Retiring Banks”) shall no
      longer be included as Banks under the Credit Agreement, and First State Bank
      of
      Northwest Arkansas and Sovereign Bank (“New Banks”) shall be added as Banks
      under the Credit Agreement. Retiring Banks shall no longer be bound by the
      terms
      of the Credit Agreement nor entitled to the benefits of the Credit Agreement,
      except as to matters which arose or Revolving Credit Loans which were advanced
      prior to the date hereof, and shall not receive payments of principal, interest
      or fees accrued or paid by the Borrower under the Credit Agreement, except
      as to
      payments or fees accrued or paid prior to the date hereof. Each New Bank is
      hereby made a party to the Credit Agreement, effective as of the date hereof
      and
      upon execution of a Signature Page hereto, and thereafter shall be included
      as a
      Bank under the terms of the Credit Agreement, and shall be bound by the terms
      of
      the Credit Agreement and entitled to all benefits of the Credit Agreement as
      though such New Bank had signed on the date of the Credit Agreement; provided,
      however, that New Banks shall not receive payments of principal, interest or
      fees accrued or paid by Borrower under the Credit Agreement prior to the date
      hereof.

     

    
 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

       

       

    

    1.2.  The
      Credit Agreement is hereby amended to evidence that effective as of the date
      hereof, Bank of Oklahoma, N.A. shall no longer serve as Paying Agent. All
      references throughout the Credit Agreement and other Loan Documents to “Paying
      Agent” shall now mean and read “Agent”.

    

    1.3.  In
      Section 1.01 (Defined Terms), the definition of “Borrowing Base” is amended to
      evidence that the amount “$5,000,000” is hereby deleted and replaced with the
      amount “$10,000,000”.

    

    1.4.  The
      Borrowing Base Certificate attached to the Credit Agreement as Exhibit
      “A”
      is
      hereby deleted and replaced with the Borrowing Base Certificate attached as
      Schedule
      “1.4”
      hereto.

    

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

    

    “Interest
      Period” means, with respect to any LIBOR Loan, the period commencing on the date
      such Loan is made and ending, as the Borrower may select, pursuant to
Section
      2.05,
      on the
      numerically corresponding day in the first, second, third, sixth, ninth, or
      twelfth calendar month thereafter, except that each such Interest Period that
      commences on the last day of a calendar month (or on any day for which there
      is
      no numerically corresponding day in the appropriate subsequent calendar month)
      shall end on the last day of the appropriate subsequent calendar month;
      provided, however, that no Interest Period may extend beyond the Termination
      Date.”

    

    1.6.  The
      Credit Agreement is hereby amended to evidence that, effective as of the date
      hereof, the Revolving Credit Commitment of each Bank shall be the amount
      opposite such Bank’s name on its signature page hereto.

    

    1.7.  In
      Section 1.01 (Defined Terms), the definition of “Termination Date” is amended to
      evidence that the Termination Date is hereby extended to April 30,
      2009.

    

    1.8.  Section
      2.05 (Interest) is amended to amended
      to evidence that the table contained therein is hereby deleted and replaced
      with
      the following:

    1.9.  

    
      	
               

              Borrower’s
                Ratio of 

              Funded
                Debt to EBITDA

               

            	
               

              Adjusted

              LIBOR
                Rate

               

            	
               

              Adjusted

              Prime
                Rate

               

            
	
              <
                1.75

              >
                1.75 and < 2.0

              > 2.0
                and < 2.25

              > 2.25

            	
              LIBOR
                Rate plus 2.75%

              LIBOR
                Rate plus 3.0%

              LIBOR
                Rate plus 3.25%

              LIBOR
                Rate plus 3.5%

            	
              Prime
                Rate minus .25%

              Prime
                Rate plus 0.0%

              Prime
                Rate plus .25%

              Prime
                Rate plus .5%

            

    

    

    1.10.  Section
      2.05 (Interest) is hereby amended to evidence the addition the following
      paragraph:

    

    “The
      Adjusted LIBOR Rate and Adjusted Prime Rate shall be recalculated on not less
      than a monthly basis, upon Bank’s receipt of Borrower’s monthly financial
      statements.”

     

    
 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    1.11.  Section
      2.16 (Termination Fee) is hereby amended to evidence that ”six (6) months” shall
      now mean and read “fifteen (15) months.”

    

    1.12.  Section
      2.17 (Audit Fees) is amended to evidence that the following sentence is hereby
      added as the first sentence of said Section 2.17:

    

    “Section
      2.17. Audit Fees.
      To the
      extent that Bank’s auditors reasonably determine that any amounts reported by
      the Borrower are incorrect (including amounts on a Borrowing Base Certificate,
      pursuant to the Financial Covenants in Article 7, or elsewhere pursuant to
      the
      loan documents), then the adjusted amount(s) reasonably determined by the Bank’s
      auditors shall be deemed to be the correct amount(s) until such time, if ever,
      that the Borrower shall provide convincing evidence to the Bank to the contrary.
      The Borrower agrees. . .”

    

    1.13.  Section
      6.02(3) is hereby deleted and replaced with the following:

    

    “(3) The
      ACM
      Sub-Debt and ACM-Texas Sub-Debt.”

    

    1.14.  Section
      7.03 (Minimum Tangible Net Worth) is hereby amended to evidence that the date
      “July 31, 2004”, in each instance, shall now mean and read “July 31, 2005”, and
      the amount “$57,000,000” shall now mean and read “$60,000,000”.

    

    1.15.  Section
      10.13 is hereby deleted and replaced with the following:

    

    “Section
      10.13. Increased Commitment; Additional Lender.
      Initially the aggregate Revolving Credit Commitment shall equal $34,500,000;
      however, it is contemplated that the aggregate Revolving Credit Commitment
      will
      increase to $40,000,000 upon the request of Borrower and approval of and
      increased Commitments by the Banks, and/or the addition of one or more
      Additional Lenders. In the event Borrower requests and Banks approve an increase
      in the Commitment, said increase will be evidenced by execution of a new
      Signature Page hereto, stating the amount of the Bank’s increased Commitment, by
      any increasing Bank, and delivery to any increasing Bank of an original executed
      promissory note equal to the Bank’s increased Commitment. Further, one or more
      Additional Lenders may be made a party hereto as determined by Agent, and any
      Additional Lender made a party hereto shall execute a Signature Page attached
      hereto and made a part hereof, and thereafter shall be included as a Bank under
      the terms of this Agreement. By execution of the Additional Lender Signature
      Page and upon receipt of an original executed promissory note equal to the
      Additional Lender’s Revolving Credit Commitment, each Additional Lender shall be
      bound by the terms of this Agreement and entitled to all benefits of this
      Agreement as though such Additional Lender or Lenders had signed on the date
      of
      this Agreement; provided, however, that any Additional Lender shall not receive
      payments of principal, interest or fees accrued hereunder or paid by the
      Borrower prior to the date such Additional Lender executes its Signature
      Page.”

    

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

    

    2.1.  Borrower
      shall execute and deliver Promissory Notes, in form and content as set forth
      on
Schedule
      “2.1(a)”
      through
“2.1(f)”
      hereto.

     

    
 

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

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

    

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

    

    3.  Representations
      and Warranties.
      Each of
      the Borrower and the Guarantor, respectively, hereby ratify and confirm all
      representations and warranties set forth in Article 4 of the 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.

    

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

    

    5.  Ratification
      and Amendment of Guaranties.
      Guarantor hereby (i) ratifies and confirms the Guaranty, (ii) acknowledges
      and
      agrees that the Guaranty is hereby amended to evidence that the amount of the
      Loan and Note, as defined therein, may be increased to $40,000,000, and (iii)
      acknowledges and agrees that the Guaranty shall fully guarantee the Note in
      the
      amount of $40,000,000, or any lesser amount to which the Note is
      increased.

    

    6.  Ratification
      and Amendment of Subordination Agreements.
      ACM and
      ACM-Texas 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 amount of the Loan and Note,
      as
      defined therein, may be increased to $40,000,000, (iii) acknowledges and agrees
      that the Superior Obligations and Superior Liens, as defined in its respective
      Subordination Agreement, shall include the $40,000,000 Note, or any lesser
      amount to which the Note is increased, and (iv) acknowledges and agrees that
      its
      respective Subordinate Obligations and Subordinate Liens shall be subordinate
      to
      the $40,000,000 Note, or any lesser amount to which the Note is
      increased.

    

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

    

    8.  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.

    

    9.  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.

    

    

    

    

    

    [Signature
      pages to follow.]

    

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      
        	 	
                “BORROWER”

                

                COLONIAL
                  AUTO FINANCE, INC.,
                  an Arkansas corporation 

                

                

                By   
                  /s/ T. J. Falgout,
                  III                                            
                  

                    
                  T. J. Falgout, III, President

                

                

                "GUARANTOR"
                  and “SUBORDINATING PARTY”

                

                AMERICA’S
                  CAR-MART, INC.,
                  a
                  Texas

                corporation,
                  formerly known as Crown

                Group,
                  Inc.

                

                

                By   
                  /s/ Mark D.
                  Slusser                                         
                  

                      
                  Mark D. Slusser, Vice President

                

                

                AMERICA’S
                  CAR MART, INC.,
                  

                an
                  Arkansas corporation

                

                

                By   
                  /s/ Mark D.
                  Slusser                                         
                  

                      
                  Mark D. Slusser, Vice
                  President

              

      

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    
      	 	
              “BANKS”
 
	 	 
	
              Revolving
                Credit Commitment:

            	
              BANK
                OF OKLAHOMA, N.A.

            
	
              $19,000,000

            	 
	 	 
	
              Principal
                Office and Lending Office

              P.O.
                Box 2300

              Tulsa,
                OK 74192

            	
               

               

              By 
                /s/ Jeffrey R. 
                Dunn                              
                

            
	
              Attn:
                John Anderson 

              janderson@bokf.com 

            	
                  
                Jeffrey R. Dunn, Vice President

            
	 	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signature
      Page to First Amendment to Amended and Restated Agented Revolving

    Credit
      Agreement dated September 30, 2005]

    

    

    

    
      
        
          

           

        

        
        

      

      
        6

        
          

        

      

      
        
        

        
        

      

    

    
      	
              Revolving
                Credit Commitment:

            	
              BANK
                OF ARKANSAS, N.A.

            
	
              $1,000,000

            	 
	 	 
	
              Principal
                Office and Lending Office:

            	 
	
              P.O.
                Box 1407

            	 
	
              Fayetteville,
                AR 72702-1404

            	
              
                By 
                  /s/ Jeffrey R. 
                  Dunn                              
                  

              

            
	
              Attention:
                Jeffrey R. Dunn

            	
                    
                Jeffrey R. Dunn, President & CEO

            
	
              jdunn@bokf.com 

            	 
	 	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signature
      Page to First Amendment to Amended and Restated Agented Revolving

    Credit
      Agreement dated September 30, 2005]

    

    

    

    
      
        
          

           

        

        
        

      

      
        7

        
          

        

      

      
        
        

        
        

      

    

    
      	
              Revolving
                Credit Commitment:

            	
              SOVEREIGN
                BANK

            
	
              $3,500,000

            	 
	 	 
	
              Principal
                Office and Lending Office:

            	 
	
              7301
                State Highway 161, Suite 130

            	 
	
              Irving,
                Texas 75039

            	
              By
                /s/ William B.
                Wilson                           
                

            
	
              Attention:
                William B. Wilson

            	
                    
                William B. Wilson, Area President

            
	
              Email:
                _____________

            	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signature
      Page to First Amendment to Amended and Restated Agented Revolving

    Credit
      Agreement dated September 30, 2005]

    

    

    

    

    
      
        
          

           

        

        
        

      

      
        8

        
          

        

      

      
        
        

        
        

      

    

    
      	
              Revolving
                Credit Commitment:

            	
              GREAT
                SOUTHERN BANK 

            
	
              $5,000,000

            	 
	 	 
	
              Principal
                Office and Lending Office:

            	 
	
              1451
                E. Battlefield

            	 
	
              Springfield,
                MO 65804

            	
              By 
                /s/ Ron
                Pender                                    
                

            
	
              Attn:
                Ron Pender 

            	
                    
                Ron Pender, Vice President

            
	
              glewis@greatsouthernbank.com 

            	 
	 	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signature
      Page to First Amendment to Amended and Restated Agented Revolving

    Credit
      Agreement dated September 30, 2005]

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    
      	
              Revolving
                Credit Commitment:

            	
              FIRST
                STATE BANK OF NORTHWEST

            
	
              $1,500,000

            	
              ARKANSAS

            
	 	 
	 	 
	
              Principal
                Office and Lending Office:

            	 
	
              P.O.
                Box 1807

            	 
	
              Fayetteville,
                Arkansas 72702

            	
              By   
                /s/ Curtis
                Hutchins                                       
                

            
	
              Attn:
                Curtis Hutchins

            	
                    
                Curtis Hutchins, President/Chief Executive

            
	
              E-mail:
                _________________

            	
                    
                Officer

            

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signature
      Page to First Amendment to Amended and Restated Agented Revolving

    Credit
      Agreement dated September 30, 2005]

    

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    
      	
              Revolving
                Credit Commitment:

            	
              FIRST
                STATE BANK

            
	
              $4,500,000

            	 
	 	 
	
              Principal
                Office and Lending Office:

            	 
	
              620
                Chestnut Street

            	 
	
              Conway,
                AR 72703 

            	
              By   
                /s/ Michael
                Bynum                                               
                

            
	
              Attention:
                Michael Bynum

            	
                   
                Michael Bynum, Senior Vice President

            
	
              mbynum@fsbmail.com 

            	 

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signature
      Page to First Amendment to Amended and Restated Agented Revolving

    Credit
      Agreement dated September 30, 2005]

    

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    
      	 	
              “AGENT”

            
	 	 
	 	
              BANK
                OF ARKANSAS, N.A.

            
	 	 
	 	 
	
               

            	
              By   
                /s/ Jeffrey R.
                Dunn                                         
                

            
	 	
                    
                Jeffrey R. Dunn, President

            

    

    

    

    

    

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    By
      execution hereof, we evidence our acknowledgment and acceptance of Section
      1.1
      to this First Amendment to Amended and Restated Revolving Credit Agreement,
      to
      the extent it applies to us:

    

    

    
      	 	
              “Retiring
                Banks”

            
	 	 
	 	
              LIBERTY
                BANK OF ARKANSAS

            
	 	 
	 	 
	 	
              By   
                /s/ Steve
                Wilmott                                                      
                

            
	 	
                    
                Steve Wilmott, Senior Vice President

            
	 	 
	 	 
	 	
              ARVEST
                BANK

            
	 	 
	 	 
	 	
              By   
                /s/ Tom
                Wetzel                                                           
                

            
	 	
                    
                Tom Wetzel, Senior Vice President

            

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    

    [Signature
      Page to First Amendment to Amended and Restated Agented Revolving

    Credit
      Agreement dated September 30, 2005]

     

     

     

     

     

     

     

     

    13Exhibit 4.2

    
      

    

    

      EXHIBIT
        4.2

    

    

      SECOND
        AMENDMENT TO REVOLVING CREDIT AGREEMENT 

      

      

      THIS
        SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT
        ("Amendment") is dated effective as of September 30, 2005, 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 (as amended, the "Credit Agreement"),
        by
        and among Borrowers and Bank, pursuant to which the Bank established a
        $5,000,000 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 increase the $5,000,000 Revolving Line of Credit
        to
        $10,000,000, and extend the maturity date thereof; 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 Credit Agreement unless
        otherwise defined herein.

      

      AGREEMENT

      

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

      

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

      

      1.1.  In
        Section 1.01 (Defined Terms), the definition of “ACM-Texas Sub-Debt” is hereby
        deleted and replaced with the following:

      

      “’ACM-Texas
        Sub-Debt’ means the revolving line of credit provided to the Borrower by
        ACM-Texas, in an amount not to exceed Ten Million and No/100 Dollars
        ($10,000,000.00).”

      

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

      

      “’Borrowing
        Base’ means, as of the date of determination, (i) $2,000,000, plus
        (ii)
        eighty percent (80%) of Borrower’s Eligible Inventory, plus
        (iii)
        eighty percent (80%) of the purchase price of the real property and equipment
        set forth on Exhibit
        “A-1”
        hereto.”

      

      The
        list
        of real property and equipment to be attached to the Credit Agreement as
        Exhibit
        “A-1”
        is
        attached to this Amendment as Schedule
        1.1.

      

      1.3.  In
        Section 1.01 (Defined Terms), the definition of “Commitment” is amended to
        evidence that the Commitment is hereby increased to $10,000,000.

       

      
 

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

         

      

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

      

      “’Funded
        Debt’ means all outstanding Debt for Borrowed Money (not including the Colonial
        Sub-Debt up to a maximum amount of $3,000,000).”

      

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

      

      “Interest
        Period” means, with respect to any LIBOR Loan, the period commencing on the date
        such Loan is made and ending, as the Borrower may select, pursuant to
Section
        2.04,
        on the
        numerically corresponding day in the first, second, third, sixth, ninth,
        or
        twelfth calendar month thereafter, except that each such Interest Period
        that
        commences on the last day of a calendar month (or on any day for which there
        is
        no numerically corresponding day in the appropriate subsequent calendar month)
        shall end on the last day of the appropriate subsequent calendar month;
        provided, however, that no Interest Period may extend beyond the Termination
        Date.”

      

      1.6.  In
        Section 1.01 (Defined Terms), the definition of “Termination Date” is amended to
        evidence that the Termination Date is hereby extended to April 30,
        2009.

      

      1.7.  Section
        2.03 (Interest) is amended to evidence that the table contained therein is
        hereby deleted and replaced with the following:

      

      
        	
                 

                Borrower’s
                  Ratio of 

                Funded
                  Debt to EBITDA

                 

              	
                 

                Adjusted

                LIBOR
                  Rate

                 

              	
                 

                Adjusted

                Prime
                  Rate

                 

              
	
                <
                  1.75

                 >
                  1.75 and < 2.0

                 >  2.0
                  and < 2.25

                 >  2.25

              	
                LIBOR
                  Rate plus 2.75%

                LIBOR
                  Rate plus 3.0%

                LIBOR
                  Rate plus 3.25%

                LIBOR
                  Rate plus 3.5%

              	
                Prime
                  Rate minus .25%

                Prime
                  Rate plus 0.0%

                Prime
                  Rate plus .25%

                Prime
                  Rate plus .5%

              

      

      

      1.8.  Section
        2.03 (Interest) is hereby amended to evidence the addition the following
        paragraph:

      

      “The
        Adjusted LIBOR Rate and Adjusted Prime Rate shall be recalculated on not
        less
        than a monthly basis, upon Bank’s receipt of Borrower’s monthly financial
        statements.”

      

      1.9.  Section
        2.05 (Unused Portion Fee) is hereby deleted and replaced with the
        following:

      

      “Section
        2.05. Unused Portion Fee.
        The
        Borrower agrees to pay to the Bank a commitment fee on the average daily
        unused
        portion of the Bank’s Commitment from the date hereof until the Termination Date
        at the rate of one-tenth of one percent (1/10 of 1%) per annum, calculated
        monthly and payable on the last day of each June and December during the
        term of
        the Bank’s Commitment, commencing December 31, 2005, and ending on the
        Termination Date; provided, however, that no Unused Portion Fee will be paid
        for
        any given month during which the average monthly revolving balance exceeds
        (i)
        from the date hereof to March 31, 2007, $5,000,000, and (ii) from March 31,
        2007
        to the Termination Date, $6,000,000.”

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
 

      1.10.  Section
        2.14 (Termination Fee) is hereby amended to evidence that ”six (6) months” and
“$10,000” are hereby deleted and replaced with “fifteen (15) months” and
“$25,000”, respectively.

      

      1.11.  Section
        2.15 (Audit Fees) is amended to evidence that the following sentence is hereby
        added as the first sentence of said Section 2.15:

      

      “Section
        2.15. Audit Fees.
        To the
        extent that Bank’s auditors reasonably determine that any amounts reported by
        the Borrower are incorrect (including amounts on a Borrowing Base Certificate,
        pursuant to the Financial Covenants in Article 7, or elsewhere pursuant to
        the
        loan documents), then the adjusted amount(s) reasonably determined by the
        Bank’s
        auditors shall be deemed to be the correct amount(s) until such time, if
        ever,
        that the Borrower shall provide convincing evidence to the Bank to the contrary.
        The Borrower agrees . . .”

      

      1.12.  Section
        5.08 (Reporting Requirements) is amended to evidence that a new subsection
        (14)
        is hereby added, as follows:

      

      “(14) In
        the
        event Borrower ceases to sell Vehicle Contracts to Colonial, Borrower shall
        provide to Bank, as soon as available and in any event by the fifteenth
        (15th)
        day of
        each calendar month for the immediately preceding calendar month: (a) a
        collateral and loan status report; (b) an aging of the Borrower’s Contracts on a
        summary basis; (c) a summary list of Contracts where the Contract Debtor
        is
        subject to an insolvency proceeding; (d) a report of Net Charge-Offs; (e)
        a lot
        status report; and (f) other reports as to the Collateral of the Borrower
        as the
        Bank may reasonably request from time to time.”

      

      1.13.  The
        Borrowing Base Certificate attached to the Credit Agreement as Exhibit
        “A”
        is
        hereby deleted and replaced with the Borrowing Base Certificate attached
        as
Schedule
        “1.10”
        hereto.

      

      1.14.  A
        new
        Section 5.15 is hereby added, as follows:

      

      “5.15 Additional
        Security.
        Upon
        the occurrence of an Event of Default, or at the request of Bank, Borrower
        shall
        grant to Bank a first priority security interest in the real property and
        equipment set forth on Exhibit
        “A-1”
        hereto,
        and shall execute all documents and agreements and take all steps required
        or
        requested by Bank in order for Bank to perfect its liens and security interests
        in such real property and equipment.”

      

      1.15.  A
        new
        Section 6.18 is hereby added, as follows:

      

      “6.18 Negative
        Pledge.
        Borrower shall not give power to, create, incur, permit, or suffer to exist,
        or
        allow any Subsidiary to give power to, create, incur, permit, or suffer to
        exist, any Lien upon the real property and equipment set forth on Exhibit
        “A-1”,
        or any
        improvements thereon, except for Liens permitted under Section 6.01
        herein.”

      

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

      

      2.1.  Borrower
        shall execute and deliver the $10,000,000 Promissory Note, in form and content
        as set forth on Schedule
        “2.1”
        hereto.

       

      
 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

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

      

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

      

      3.  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 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.

      

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

      

      5.  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 amount of the Loan and Note, as defined therein, shall
        now
        be $10,000,000, and (iii) acknowledges and agrees that its respective Guaranty
        fully guarantees the $10,000,000 Note.

      

      6.  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 amount of
        the
        Loan and Note, as defined therein, shall now be $10,000,000, (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 Note,
        and
        (iv) acknowledges and agrees that its respective Subordinate Obligations
        and
        Subordinate Liens are subordinate to the $10,000,000 Note.

      

      7.  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 Credit Agreement and other Loan Documents shall be
        made
        to Bank of Arkansas, N.A. as paying agent.

      

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

      

      9.  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.

      

      10.  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.

      

      

      

      

      

      [Signature
        page to follow.]

      

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      
        	 	
                “BORROWER”

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

              
	 	 
	 	 
	 	
                By   
                  /s/ Mark D.
                  Slusser                                                    
                  

              
	 	
                      
                  Mark D. Slusser, Vice President

              
	 	 
	 	 
	 	
                TEXAS
                  CAR-MART, INC.,
                  a
                  Texas corporation

              
	 	 
	 	 
	 	
                
                  By   
                    /s/ Mark D.
                    Slusser                                                    
                    

                

              
	 	
                      
                  Mark D. Slusser, Vice President

              
	 	 
	 	
                "GUARANTOR"
                  and “SUBORDINATING PARTY”

              
	 	 
	 	
                AMERICA’S
                  CAR-MART, INC.,
                  a
                  Texas corporation,

                formerly
                  known as Crown Group, Inc.

              
	 	 
	 	 
	 	
                
                  By   
                    /s/ Mark D.
                    Slusser                                                    
                    

                

              
	 	
                      
                  Mark D. Slusser, Vice President

              
	 	 
	 	 
	 	
                COLONIAL
                  AUTO FINANCE, INC.,
                  

              
	 	
                an
                  Arkansas corporation

              
	 	 
	 	 
	 	
                
                  By   
                    /s/ Tilman J. Falgout,
                    III                                                 
                    

                

              
	 	
                      
                  Tilman J. Falgout, III, President

              
	 	 
	 	 
	 	
                “BANK”

              
	 	 
	 	
                BANK
                  OF OKLAHOMA, N.A.

              
	 	 
	 	 
	 	 
	 	
                
                  By   
                    /s/ Jeffrey R. Dunn     
                                                                      
                    

                

              
	
                 

              	
                      
                  Jeffrey R. Dunn, Vice President

              

      

      
 

       

       

       

       

      5

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