Document:

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                                                                   Exhibit 10.44

                           SECOND AMENDMENT TO LEASE

     This Second Amendment to Lease is made and entered into as of March 15,
2002, by and between GOLKAR ENTERPRISES, LTD. ("Lessor"), and MOTORCAR PARTS AND
ACCESSORIES, INC., a New York corporation ("Lessee").

                                   RECITALS:

     A.  Lessor and Lessee entered into that certain Standard
Industrial/Commercial Single-Tenant Lease-Gross dated September 19, 1995 (the
"Original Lease") with respect to the premises located at 2931 California
Street, Torrance, California 90503 (the "Premises").

     B.  The Original Lease was amended by an Amendment To Lease dated October
3, 1996 (the "First Amendment") (the Original Lease and the First Amendment are
hereinafter collectively referred to as the "Lease").

     C.  Lessee has exercised its option to extend the term of the Lease.

     D.  Lessor and Lessee desire to modify the Lease.

     NOW, THEREFORE, for good and valuable consideration, the receipt of which
is hereby acknowledged, the parties hereto agree as follows:

         1.  All capitalized terms herein shall have the same meaning as set
forth in the Lease except as specifically provided herein.

         2.  Modifying Paragraph 1.3 of the Original Lease and Paragraph 3 of
the First Amendment, upon the expiration of the current Term on March 31, 2002,
the Lease shall be extended for an additional five (5) years commencing April 1,
2002 and ending on March 31, 2007.

         3.  Modifying Paragraph 1.5 and Addendum Paragraph 4 of the Original
Lease and Paragraph 4 of the First Addendum, commencing April 1, 2002, the Base
Rent shall be $94,357.72 per month. During the period commencing October 1, 2004
and continuing through March 31, 2007, the monthly Base Rent of $94,357.72 will
be increased to reflect any change in the Consumer Price Index between January,
2002 and July, 2004. The increase in the Consumer Price Index shall be computed
based on the "Consumer Price Index for All Urban Consumers, Los Angeles-
Anaheim-Riverside, All items, 1982-84=100", issued by the United States
Department of Labor, Bureau of Labor Statistics. If the Index for the month of
July, 2004 is greater than the Index for the month of January, 2002, then the
monthly Base Rent will be increased in the same proportion as the increase.
However, such increase shall not be more than a total of six (6) percent per
year (15% in aggregate) nor less than a total of three (3) percent per year
(7.5% in aggregate) during said period. In no event shall the monthly Base Rent
be decreased as a result of any declines in said Consumer Price Index.

Should the United States Department of Labor re-adjust the above-described
Consumer Price Index to a different base period than the base period in effect
when this Lease is executed, then such change in the base shall be taken into
account and reflected in all adjustments. Should the official reports of the
United States Department of Labor be unavailable for the relevant

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period at the time that any adjustment hereunder is to become effective, Lessee
shall pay the rental on the unadjusted basis until the statistical information
for the adjustment is available, and within fifteen (15) days from written
notice by Lessor to Lessee of the adjustment including figures upon which the
adjustment is based, Lessee shall pay to Lessor such sum as represents the
difference between the rent paid and the adjusted amount of the rent due and
payable. In addition, at such time, Lessee shall pay to Lessor an amount
sufficient to cause the security deposit hereunder to be increased in an amount
equal to the new monthly base rental. If the described Index shall no longer be
published, another index generally recognized as authoritative shall be
substituted by agreement of the parties. If they are unable to agree within
thirty (30) days after demand by either party, the substitute index shall, on
application of either party, be selected by the chief officer of the San
Francisco Regional Office of the Bureau of Labor Statistics or its successor. If
selection by such officer cannot be obtained, the adjustment shall be made by
mutual agreement or by arbitration.

         4.  Lessee's present security deposit shall be increased to $94,357.72.
Pursuant to Paragraph 5 of the First Amendment, Lessor was to have paid interest
to Lessee on Lessee's security deposit, but a portion of such interest was
inadvertently not paid. In addition, a portion of Lessee's original security
deposit of $60,252 was applied to certain unpaid charges so that the amount of
Lessee's existing security deposit has been reduced to $52,695.86. Lessor will
credit Lessee with the sum of $16,305.84 representing the unpaid interest
through March 31, 2002. Upon the execution hereof, Lessee shall pay to Lessor
the sum of $25,356.02, which when added to the above interest credit and the
amount of Lessee's existing security deposit, will bring the amount of Lessee's
security deposit to $94,357.72. A computation of such application of charges and
interest has been delivered to Lessee concurrently herewith. Commencing April 1,
2002, Lessor shall not be required to pay Lessee any interest on its security
deposit, and such security deposit shall be increased during the term hereof in
accordance with Paragraph 5 of the Original Lease (i.e., so that the security
deposit is always equal to one month's rent).

         5.  Lessor, at Lessor's sole cost and expense, shall: (a) repair the
portion of the roof as set forth in Exhibit "A" attached hereto; (b) repair,
patch, slurry and re-stripe the parking lot; (c) repair the broken bumpers in
the parking lot (not all bumpers); and (d) remove the steel structural pad on
the floor of the northeast corner of the Building. Such repairs shall be done as
soon as is practicable after the execution hereof. Lessor further acknowledges
that: (y) the brick facade at the west part of the main entrance to 2929
California Street is cracked and separating and may require repairs in the
future; and (z) the roof over the mezzanine area has leaked at one point in the
past (although it has not leaked for over one year), and may require repair in
the future. Such repairs shall be at Lessor's sole cost and expense unless such
repairs are made necessary by the future negligence or abuse by Lessee.

         6.  Other than the repairs set forth in Paragraph 5 above, Lessee
acknowledges that, to Lessee's knowledge after due investigation, Lessor has no
obligation currently to make any other repairs to the Premises, and that, to
Lessee's knowledge after due investigation, Lessor is not in default under any
of the terms, conditions or covenants of the Lease, and no, to Lessee's
knowledge after due investigation, circumstance exists which, with the passage
of time or the giving of notice by Lessee, or both, would constitute such a
default.

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         7.  Notwithstanding any other provision to the contrary, for purposes
of determining the increases in insurance and Real Property Taxes for which
Lessee is responsible, the "Base Premium" for purposes of Paragraph 8.1 of the
Lease shall be the premium for the year 2002, and the base year for purposes of
determining the increase in Real Property Taxes shall be the 2001-2002 fiscal
tax year (the year during which this Amendment is executed).

         8.  Addendum 49 of the Original Lease and Paragraph 10 of the First
Amendment are hereby deleted in their entirety. In lieu thereof, if this Lease
has not been cancelled or terminated prior to March 31, 2007, and if Lessee is
at the time of exercise and through March 31, 2007, in possession of the
Premises and is not at the time of exercise and through March 31, 2007 in
default of any of the terms, covenants or conditions of this Lease, Lessee is
hereby granted an option to extend the Term of this Lease for an additional five
(5) year period through March 31, 2012; provided that Lessee gives written
notice to Lessor of the exercise of such option no later than September 30,
2006. The terms and conditions of the Lease during the extended five (5) year
term shall be the same as set forth in the Lease as hereby amended, except that
the monthly Base Rent during the period commencing April 1, 2007 and continuing
through September 30, 2009, the monthly Base Rent of at the end of the first
option term (i.e., the rent for the month of March, 2007) will be increased to
reflect any change in the Consumer Price Index between July, 2004 and January,
2007. The increase in the Consumer Price Index shall be computed based on the
"Consumer Price Index for All Urban Consumers, Los Angeles-Anaheim-Riverside,
All Items, 1982-84=100", issued by the United States Department of Labor, Bureau
of Labor Statistics. If the Index for the month of January, 2007 is greater than
the Index for the month of July, 2004, then the monthly Base Rent will be
increased in the same proportion as the increase. However, such increase shall
not be more than a total of six (6) percent per year (15% in aggregate) nor less
than a total of three (3) percent per year (7.5% in aggregate) during said
period. In no event shall the monthly Base Rent be decreased as a result of any
declines in said Consumer Price Index. During the period commencing October 1,
2009 and continuing through March 31, 2012, the monthly Base Rent for the month
of September, 2009 will be increased to reflect any change in the Consumer Price
Index between January, 2007 and July, 2009. The increase in the Consumer Price
Index shall be computed based on the "Consumer Price Index for All Urban
Consumers, Los Angeles-Anaheim-Riverside, All Items, 1982-84=100", issued by the
United States Department of Labor, Bureau of Labor Statistics. If the Index for
the month of July, 2009 is greater than the Index for the month of January,
2007, then the monthly Base Rent will be increased in the same proportion as the
increase. However, such increase shall not be more than a total of six (6)
percent per year (15% in aggregate) nor less than a total of three (3) percent
per year (7.5% in aggregate) during said period. In no event shall the monthly
Base Rent be decreased as a result of any declines in said Consumer Price Index.

Should the United States Department of Labor re-adjust the above-described
Consumer Price Index to a different base period than the base period in effect
when this Lease is executed, then such change in the base shall be taken into
account and reflected in all adjustments. Should the official reports of the
United States Department of Labor be unavailable for the relevant period at the
time that any adjustment hereunder is to become effective, Lessee shall pay the
rental on the unadjusted basis until the statistical information for the
adjustment is available, and within fifteen (15) days from written notice by
Lessor to Lessee of the adjustment including figures upon which the adjustment
is based, Lessee shall pay to Lessor such sum as represents the difference
between the rent paid and the adjusted amount of the rent due and payable. In

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addition, at such time, Lessee shall pay to Lessor an amount sufficient to cause
the security deposit hereunder to be increased in an amount equal to the new
monthly base rental. If the described Index shall no longer be published,
another index generally recognized as authoritative shall be substituted by
agreement of the parties. If they are unable to agree within thirty (30) days
after demand by either party, the substitute index shall, on application of
either party, be selected by the chief officer of the San Francisco Regional
Office of the Bureau of Labor Statistics or its successor. If selection by such
officer cannot be obtained, the adjustment shall be made by mutual agreement or
by arbitration.

         9.  Notwithstanding 1.10 of the Lease, the parties acknowledge that no
Brokers were used in connection with this Lease extension by Lessor, and each
party shall indemnify and hold harmless the other party, from and against any
and all claims or demands with respect to any brokerage fees, finder's fees,
agent's commissions or other compensation asserted by any person or entity in
connection with this Lease extension. Lessee shall separately compensate Mark
Berman, of Coldwell Banker Commercial / Westmac for his services in connection
with the negotiation of this extension. Except as provided in the immediately
preceding sentence, neither Lessee nor Lessor shall have any liability to any
broker for this extension or upon exercise of the option set forth in Paragraph
8 above.

         10.  Except as expressly set forth herein, all other terms and
conditions of the Lease shall remain unaffected by this Amendment, and are
hereby ratified and affirmed.

         11.  Lessor represents and warrants to Lessee that Lessor has obtained
all necessary consents to enter into this Second Amendment, including, without
limitation, the consent of Lessor's lender(s), if any.

     In witness whereof, the parties have executed this Second Amendment to
Lease as of the date first above written.

MOTORCAR PARTS AND ACCESSORIES, INC.,
A NEW YORK CORPORATION

By: /s/ Illegible
   --------------------------
                  , President

By: /s/ Illegible
   --------------------------
                  , Secretary

                  "Lessee"

Signatures continued on next page

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GOLKAR ENTERPRISES, LTD.,
A CALIFORNIA LIMITED PARTNERSHIP

BY: /s/ DAVID V. KARNEY
   -----------------------------------------
   David V. Karney, Trustee, General Partner

               "Lessor"<PAGE>

                                                                   EXHIBIT 10.45

                            SEPARATION AGREEMENT AND  RELEASE

         This Separation Agreement and Release (this "Agreement") is made and
entered into as of the 14th day of February, 2003 (the "Agreement Effective
Date"), by and between Anthony Souza, individually ("Souza"), and Motorcar Parts
& Accessories, Inc., a New York corporation (together with its subsidiaries and
affiliates, the "Company"), with reference to the following facts and
objectives:

                                    RECITALS

         (1) The Company is a leading remanufacturer of replacement alternators
and starters for imported and domestic cars and light trucks in the United
States and Canada. The Company also assembles and distributes ignition wire sets
for imported and domestic cars and light trucks with facilities in the United
States in Torrance, California and Nashville, Tennessee, as well as in Singapore
and Malaysia;

         (2) Souza has been employed by the Company as its President and Chief
Executive Officer pursuant to the terms of an Employment Agreement dated
December 1, 1999 (the "Employment Agreement"), and has been a director of the
Company since December 1, 1999; and

         (3) Souza and the Company entered into a letter agreement on February
14, 2003, pursuant to which Souza and the Company agreed to the terms and
conditions of the termination of Souza's employment, among other matters (the
"Letter Agreement"). The Letter Agreement provides for the parties to enter into
this Agreement.

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                  NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, and subject to the terms and conditions set forth
herein, the parties hereto hereby agree as follows:

         1. RESIGNATION; DIRECTORSHIP. Souza has, effective at the close of
business, California time, on the Agreement Effective Date, resigned as a
director, officer and from any and all other positions and capacities with or in
the Company (except as an independent consultant as set forth herein), a copy of
which resignation is attached as Exhibit A. Notwithstanding the date that this
Agreement is signed, and provided that it is not revoked pursuant to Section 4.3
hereof, Souza hereby confirms the termination of his employment by the Company
effective as of the Agreement Effective Date. Except as set forth in Sections
2.1 through 2.8 hereof, inclusive, the Employment Agreement is terminated as of
the Agreement Effective Date and has no further force, effect or validity.

         2. CONSULTING SERVICES AND SEVERANCE BENEFITS. In lieu of any and all
severance pay and other benefits provided for in the Employment Agreement, at
law, or otherwise, the Company shall pay to or provide for the benefit of Souza
the benefits described below. Souza acknowledges that the benefits and
arrangements contained in this Agreement are anticipated to exceed the benefits
to which Souza would have been entitled in the absence of this Agreement, and
that such benefits represent fair and adequate consideration for the release
contained herein and the other terms and conditions of this Agreement.

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         2.1 CONTINUATION OF BASE SALARY. The Company will continue payment of
         Souza's Base Salary, as provided in Section 5(a) of the Employment
         Agreement, through May 31, 2003.

         2.2 VACATION PAY. Within three (3) business days after the date this
         Agreement is executed by the parties, the Company will pay Souza the
         sum of $34,615.38 (less $15,614.99 to be withheld for applicable
         payroll taxes) as vacation pay through May 31, 2003.

         2.3 SICK PAY. Souza acknowledges that no sick pay is due to Souza.

         2.4 BONUS. Not later than July 15, 2003, the Company will pay Souza his
         bonus for the fiscal year ended March 31, 2003 less any amounts
         advanced with respect thereto. In addition, any bonus that is payable
         to Souza for the two month period that will end on May 31, 2003, will
         be paid to Souza within 30 days after completion of the audited
         financial results of the Company for the fiscal year ending March 31,
         2004. With regard to matters relating to Souza's bonus, the provisions
         of Section 5(c) of the Employment Agreement will govern.

         2.5 BUSINESS EXPENSES. The Company will reimburse Souza for business
         expenses incurred by Souza in the manner provided in Section 6 of the
         Employment Agreement. In this regard, Souza may retain the cell phone
         he is currently using for business purposes and the Company will
         reimburse him for such usage. On May 31, 2003, Souza will return the
         cell phone to

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         the Company or purchase it for a mutually agreeable price. If
         practicable, Souza will be given the opportunity to retain the cell
         phone number for his use after May 31, 2003, whether or not he
         purchases the cell phone. Further, Souza will properly document or
         reimburse the Company for an aggregate of $1049.80 in charges incurred
         on an American Express issued to him.

         2.6 HEALTH BENEFITS. The Company will pay Souza the sum of $2,086.45
         per month for each of the months of March, April and May 2003, for
         health benefits under Section 7(a) of the Employment Agreement.

         2.7 AUTOMOBILE ALLOWANCE AND EXPENSES. All expenses that are to be paid
         by the Company pursuant to Section 7(b) of the Employment Agreement
         shall be paid for Souza's automotive use through May 31, 2003. In
         addition, the Company will pay Souza an amount equal to $1,502.00 as
         reimbursement for documented automobile insurance costs that Souza
         incurred and paid prior to the Agreement Effective Date.

         2.8 BENEFITS UNDER EXECUTIVE DEFERRED COMPENSATION PLAN. The Company
         confirms that Souza may withdraw, without restriction and at any time,
         the entire balance in his account under the Company's Executive
         Deferred Compensation Plan (the "Deferred Compensation Plan") to the
         extent of contributions by Souza and the Company through the Agreement
         Effective Date.

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<PAGE>

         2.9 INDEMNIFICATION. The Company will indemnify Souza for his prior
         service as an officer and director of the Company and for Souza's
         service as a consultant following the Agreement Effective Date, to the
         fullest extent provided by applicable law and in accordance with the
         Company's Certificate of Incorporation and Bylaws. In this connection,
         Souza will cooperate with the Company and its counsel as the Company
         may reasonably request.

         2.10 LEGAL EXPENSES. Each of the parties hereto shall bear his or its
         own legal expenses and related costs.

         3. AGREEMENTS AND OPTIONAL TERMINATION.

                  3.1 AGREEMENT TO PROVIDE CONSULTING SERVICES. Commencing as
of the Agreement Effective Date and continuing through May 31, 2004, Souza
agrees to provide consulting services to the Company as an independent
consultant. Souza shall make himself available to the Company, its Chief
Executive Officer and other officers and to management employees, and its Board
of Directors as they may request upon reasonable advance notice, but subject to
other engagements Souza may schedule prior to the receipt of any such notice
requesting his services for the Company. The Company's Chief Executive Officer
and other officers of the Company shall have the authority to notify Souza and
request his services. Consulting services that are requested from Souza will not
be inconsistent with Souza's duties while he was the Company's Chief Executive
Officer. In this connection, Souza shall use reasonable efforts to cooperate
with the

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Company so that appropriate consulting times may be scheduled. The compensation
and benefits set forth in Sections 2.1 through 2.8, above, shall be the total
compensation payable to Souza for such consulting services for the period from
the Agreement Effective Date through May 31, 2003. For the period from June 1,
2003 through May 31, 2004, Souza's compensation shall be $15,000/month, payable
on or before the fifth day of each month during that one-year period. Souza
shall be fully responsible for any and all taxes (including, without limitation,
income taxes) that may arise in connection with the performance of his services
as an independent consultant.

                  3.2 COPYRIGHT OWNERSHIP. If in the course of providing his
services hereunder, Souza, alone or with employees of the Company, develops any
material that the Company believes and informs Souza may be subject to
protection under the United States Copyright Law, Souza agrees that exclusive
ownership of the copyright shall reside in the Company and that such
copyrightable matter shall be a "work made for hire" as such term is defined in
he United States Copyright Law.

                  3.3 OPTIONAL TERMINATION. Souza may terminate his consulting
Services for the Company at any time and for any reason following June 1, 2003,
by giving the Company at least 30 days prior written notice thereof.

                  4. GENERAL RELEASE.

                           4.1 RELEASE. Souza, for and on behalf of himself and
each and all of his past, present, and future agents, attorneys, affiliates,
representatives, heirs, executors, administrators, family members, successors,
and assigns, hereby fully and

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<PAGE>

forever releases the Company and its past, present, and future officers,
directors, managers, shareholders, agents, employees, attorneys, affiliates,
representatives, successors, and assigns (collectively, the "Company Related
Parties") from all claims, demands, debts, obligations, liabilities, costs,
expenses, rights of action, causes of action, or judgments of any kind or
character whatsoever, whether known or unknown, suspected or unsuspected,
contingent or absolute, direct or indirect, arising on or before the date hereof
or that hereafter may be claimed to arise out of any action, inaction, event, or
matter occurring on or before the date hereof, that were, might, or could have
been asserted against the Company Related Parties (collectively, the "Released
Claims"), including, but not limited to, any and all claims in connection with,
arising out of, resulting from, or in any way relating to Souza's employment
with the Company and the termination thereof; discrimination on the basis of:
age; race; national origin; sex; marital status; disability; medical, physical,
or mental condition; or sexual orientation; violation of public policy; wrongful
termination; breach of express or implied contract; breach of the implied
covenant of good faith and fair dealing; unpaid wages, benefits, accrued
vacation, or other compensation; breach of the Employment Agreement, or any
other contract; unfair labor practices; intentional or negligent infliction of
emotional distress or any other personal injury tort; or violation of any
federal, state, or local laws or regulations relating to employment
discrimination or otherwise, including, but not limited to, the federal Age
Discrimination in Employment Act ("ADEA") and the Older Workers' Benefit
Protection Act. The Released Claims specifically do not include (i) any

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<PAGE>

claims arising out of the rights and obligations of the parties pursuant to this
Agreement, (ii) any claims arising out of Souza's right to be indemnified by the
Company, to the fullest extent provided by applicable law, and (iii) Souza's
rights as an option holder under the Company's 1994 Stock Option Plan. Nothing
in this release shall be interpreted to waive or release any right Souza has
under applicable law to seek indemnification for claims that may be asserted
against him on behalf of the Company by one or more third parties.

                  4.2 KNOWING AND VOLUNTARY WAIVER. Souza understands and agrees
that the Released Claims include ALL claims of any nature and kind whatsoever,
whether known or unknown, suspected or unsuspected, and Souza hereby expressly
waives all rights under Section 1542 of the Civil Code of California, which
provides as follows:

                  A general release does not extend to claims which the creditor
                  does not know or suspect to exist in his favor at the time of
                  executing the release, which if known by him must have
                  materially affected his settlement with the debtor.

Souza acknowledges that he hereafter may discover facts different from or in
addition to those that he now knows or believes to be true with respect to the
Released Claims and agrees that this release shall be and remain effective in
all respects notwithstanding any different or additional facts or the discovery
thereof.

                  4.3 ADEA RIGHTS. Souza hereby acknowledges that he has been
advised that, pursuant to the ADEA, he is entitled to consider this Agreement
for a period of 21 days before execution hereof, and that he has the right to
revoke this Agreement for

                                      -8-
<PAGE>

a period of seven days after execution hereof. Souza hereby acknowledges that
this Agreement was delivered to him on February 20, 2003, and, if he has
executed this Agreement before March 13, 2003, he has done so knowingly, and
thereby expressly and voluntarily waives the right to consider this Agreement
for a period of 21 days prior to execution. Notwithstanding the date that Souza
signs this Agreement, he has the right to revoke this Agreement for a period of
seven days after he signs it, as indicated next to his signature hereon.

                  4.4 COBRA RIGHTS. Notwithstanding the release provided for
herein, the Company is obligated to, and shall, provide Souza timely written
notification of Souza's rights, if any, to continuation of insurance coverage
under the provisions of the Consolidated Omnibus Reconciliation Act of 1986
("COBRA").

                  5. LIMITATION ON ACTIVITIES. For purposes hereof, the
"business" of the Company is defined as set forth in subparagraph (1) in the
RECITALS to this Agreement. For the periods set forth in the following
Subsections of this Section 5, Souza agrees that he will not:

                           5.1 COMPETING BUSINESS. During the period he is a
consultant to the Company, carry on or engage in any business that is
competitive with, the same as, or similar to, the business of the Company
anywhere within the United States of America;

                           5.2 SOLICITATION OF CUSTOMERS. During the period he
is a consultant to the Company, call upon, solicit or cause to be solicited with
respect to products or services similar to those of the Company, any customer of
the Company. For

                                      -9-
<PAGE>

purposes hereof, a "customer of the Company" is any person or entity to which
the Company has sold or actively offered to sell its products or services during
the thirty-six month period ending on the Effective Date of this Agreement.
Nothing in this Agreement shall prohibit Souza from soliciting or causing to be
solicited any person or organization with respect to products or services not
the same as or similar to those of the Company.

                           5.3 SOLICITATION OF EMPLOYEES. Through the period
ending May 31, 2005, solicit for employment or other affiliation, as an
employee, partner, co-owner, joint venturer, or consultant, any person who was
employed by the Company on the Agreement Effective Date and while such person is
employed by the Company.

                  6. CONFIDENTIAL INFORMATION.

                           6.1 DEFINITIONS. The term "confidential information"
includes the following categories of information, regardless of whether such
information would qualify as a "trade secret" under applicable law: (i) personal
information regarding current and former Company employees including name,
address, telephone number, email address, marital status, salary history,
benefits, disciplinary history, medical information, and any other information
in which employees have a privacy interest, but only to the extent that the
Company treats such information as confidential information and takes steps to
protect such information from unauthorized disclosure or misuse; (ii) specific
information regarding Company customers that has been developed and compiled
with the time, effort and resources of the Company and its employees, the

                                      -10-
<PAGE>

names of customer contact personnel, promotional program participation patterns
and preferences of customers, promotional program participation terms, special
promotional programs, promotional program terms, conditions and pricing,
customer credit records and payment history, customer correspondence and files,
but only to the extent that the Company treats such information as confidential
information and takes steps to protect such information from unauthorized
disclosure or misuse; (iii) non-public business practices and ideas of the
Company, including sales techniques and new product ideas and plans; and (iv)
non-public financial information relating to the Company and its operations.

                           6.2 DUTY OF NONDISCLOSURE. Souza agrees that neither
he nor any of his employees, agents, representatives, affiliates, or partners
shall, at any time, directly or indirectly, disclose or use any confidential
information of or relating to the Company that is known to Souza as of the
Agreement Effective Date or confidential information which may be disclosed to
Souza in the course of his consulting activities for the Company. Souza hereby
acknowledges that certain confidential information is the property of the
Company or that the Company may be under a duty to prevent the disclosure
thereof to third parties, that such confidential information was made known to
Souza in confidence in connection with his duties as an officer, director, and
employee of, or consultant to, the Company, and that any use of such
confidential information by Souza other than for the sole benefit of the Company
would be wrongful and would cause irreparable harm. Souza shall be under no
obligation to protect the confidentiality of any

                                      -11-
<PAGE>

information that: (i) becomes publicly known through no breach or fault of
Souza; (ii) is obtained by Souza from a third party who has the right to
transfer or disclose it without breach of any obligation of confidentiality;
(iii) is disclosed by Souza under legal process such as a subpoena or other
examination in the course of litigation or a public or private governmental
investigation after giving prompt notice to the Company of such subpoena or
other legal process and cooperates as the Company may reasonably request, at its
expense, to quash such proceeding; or (iv) has been disclosed by Souza prior to
the Agreement Effective Date in the course of his service as an officer or
director of the Company, except for information that was disclosed under
circumstances where the recipient accepted the disclosure under a written
agreement of confidentiality.

                           6.3 OTHER AGREEMENTS AND OBLIGATIONS. Souza
acknowledges that, as an employee, executive and director of the Company, he is
a party to various prior agreements and understandings with and for the benefit
of the Company. Such agreements and understandings shall not survive the
execution of this Agreement and the transactions contemplated hereby. Further,
the Letter Agreement shall not survive the execution of this Agreement, and will
be superseded and replaced by this Agreement.

                  7. INJUNCTIVE RELIEF. Souza agrees and acknowledges that it
would be difficult to compensate the Company fully for damages for breach of any
of the provisions of Sections 5 and 6 hereof (other than Section 6.3).
Accordingly, Souza specifically agrees that the Company will be entitled to
temporary and permanent injunctive relief to enforce the provisions of such
Sections, and that such relief may be

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<PAGE>

granted without the necessity of posting a bond or of proving actual damages.
This provision with respect to injunctive relief will not, however, diminish the
Company's right to claim and to recover damages.

                  8. REPRESENTATIONS AND WARRANTIES OF SOUZA. Souza hereby
represents and warrants to the Company as follows:

                           8.1 NO ASSIGNMENT. Souza has not assigned or
transferred, or purported or agreed to assign or transfer, to any individual,
partnership, corporation, or other entity, all or any portion of his or its
right, title, or interest in and to the Employment Agreement or any of the
Released Claims.

                           8.2 COMPLIANCE. This Agreement and the consummation
of the transactions contemplated hereby has not and will not result in the
breach of any term or provision of, or constitute a default under, any court
order, judicial decree, lien, indenture, mortgage, deed of trust, lease
agreement, instrument, commitment, or other arrangement to which Souza is a
party or by which he is bound.

                  9. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. As of the
Agreement Effective Date, the Company hereby represents and warrants to the
Souza as follows:

                           9.1 AUTHORITY. The Company has the requisite
authority to enter into the transactions contemplated by this Agreement. The
execution, delivery and performance of this Agreement have been duly approved
and authorized by all necessary action by the Board of Directors of the Company.

                                      -13-
<PAGE>

                           9.2 COMPLIANCE. This Agreement and the consummation
of the transactions contemplated by this Agreement has not and will not result
in the breach of any term or provision of, or constitute a default under, any
court order, judicial decree, lien, indenture, mortgage, deed of trust, lease,
agreement, instrument, commitment, or other arrangement to which the Company is
a party or by which he is bound.

                  10. LEGAL REPRESENTATION. Each of the parties hereto
represents that such party has been represented by legal counsel of his or its
own choosing.

                  11. NOTICES. All notices, demands and other communications
required, desired, or permitted to be given under this Agreement shall be in
writing and shall be deemed to have been given immediately if personally
delivered; twenty-four hours after being delivered to overnight delivery
couriers or sent by telecopy, e-mail, or other electronic transmitting device,
provided that the device records the date and time of successful transmission
thereof; or five days after mailing by registered or certified mail, postage
prepaid, return receipt requested, addressed in accordance with the addresses
set forth below, or to such other addresses of which notice is given pursuant to
this Section.

                      If to Souza:        Mr. Anthony Souza
                                          16051 Avenida San Miquel
                                          La Mirada, CA 90638
                                          Telephone: (562) 947-9873
                                          Facsimile: (562) 947-0499

                      With a copy to:     Jack Goldman, Esq.
                                          Miller & Holguin
                                          Suite 700

                                      -14-
<PAGE>

                                          1801Century Park East
                                          Los Angeles, CA 90067
                                          Telephone: (310) 556-1990
                                          Facsimile: (310) 557-2205

                      If to the Company:  Motorcar Parts & Accessories, Inc.
                                          2929 California Street
                                          Torrance, CA 90503
                                          Attention: Selwyn Joffe, Chairman,
                                          President & CEO
                                          Telephone: (310) 972-4005
                                          Facsimile: (310) 224-5128

                      With a copy to:     Michael M. Umansky, Esq.
                                          Motorcar Parts & Accessories, Inc.
                                          2929 California Street
                                          Torrance, CA 90503
                                          Telephone: (310) 972-4015
                                          Facsimile: (310) 224-5128

                  12. ENTIRE AGREEMENT. This Agreement contains the entire
agreement between the parties with respect to the subject matter hereof and
supersedes any prior agreements, arrangements, understandings, representations,
warranties and covenants between the parties hereto, including, without
limitation, the Letter Agreement.

                  13. NO WAIVER. No delay or omission in the exercise of any
right or remedy shall impair such right or remedy or be construed as a waiver. A
consent to or approval of any act shall not be deemed to waive or render
unnecessary consent to or approval of any other or subsequent act. All rights of
the parties hereto are separate and cumulative, and no one of them, whether
exercised or not, will be deemed to be to the exclusion of any other rights, and
no one of them will be deemed to limit or prejudice any other legal or equitable
rights or remedies that the parties hereto may have. The parties

                                      -15-
<PAGE>

hereto will not be deemed to waive (either expressly or by implication) any of
their rights or remedies under this Agreement except by a duly executed written
waiver.

                  14. SEVERABILITY. If any portion of this Agreement is for any
reason declared invalid or unenforceable by reason of any applicable law, the
validity of the remaining portions shall not be affected thereby and such
remaining portions shall remain in full force and effect as if this Agreement
had been executed with the invalid portion eliminated.

                  15. GOVERNING LAW. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of California in
effect from time to time. The parties agree that proper venue will be in the
Superior Court of Los Angeles County.

                  16. ARBITRATION OF DISPUTES. Except as otherwise provided in
this Agreement, any controversy between the parties arising out of this
Agreement shall be submitted to the American Arbitration Association for
arbitration by a sole arbitrator in Los Angeles, California. The costs of the
arbitration, including any American Arbitration Association administration fee,
the arbitrator's fee, and costs for the use of facilities during the hearings,
shall be borne equally by the parties to the arbitration. Attorneys' fees may be
awarded to the prevailing or most prevailing party at the discretion of the
arbitrator. The provisions of Sections 1282.6, 1283, and 1283.05 of the
California Code of Civil Procedure apply to the arbitration. The arbitrator
shall not have any power to alter, amend, modify or change any of the terms of
this Agreement nor to grant any

                                      -16-
<PAGE>

remedy which is either prohibited by the terms of this Agreement, or not
available in a court of law.

                  17. ATTORNEYS' FEES. In any arbitration or other proceedings
to enforce or to interpret any part of this Agreement, or any action arising out
of the transactions or relationships that are the subject matter hereof, the
prevailing party shall be entitled to recover as an element of its costs of the
action, and not as damages, all attorneys' fees reasonably incurred in bringing
such action and in enforcing any judgment or award granted therein, all of which
shall be deemed to have accrued upon the commencement of such action. The
"prevailing party" shall be the party that is entitled to recover its costs of
the action, regardless of whether the action proceeds to final judgment. Any
judgment or order entered in such action shall contain a specific provision
providing for the recovery of attorneys' fees and costs incurred in enforcing
such judgment or order.

                  18. AMENDMENT. No supplement, amendment, or modification
hereof shall be valid unless it shall be in writing and signed by all parties
hereto.

                  19. SUCCESSORS AND ASSIGNS. Except as otherwise specifically
provided herein, all of the terms, provisions, and obligations of this Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective heirs, representatives, successors and assigns.

                  20. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All written
representations and warranties of the parties set forth in this Agreement will
survive the consummation of the transactions contemplated by this Agreement.

                                      -17-
<PAGE>

                  21. THIRD PARTIES. This Agreement and all conditions and
provisions hereof are intended for the sole and exclusive benefit of the parties
hereto and their respective successors and assigns, and nothing contained herein
shall be construed to give any other person or entity any legal or equitable
right, remedy, or claim under or in respect of this Agreement or any provision
hereof.

                  22. FURTHER ASSURANCES. Each party shall execute and deliver
all such further instruments, documents or similar materials, and shall perform
any and all acts necessary, to give full force and effect to all of the terms
and provisions of this Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                      -18-
<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the
dates set forth opposite their names below.

Dated:   June 30, 2003              /s/ Anthony Souza
                                    ____________________________________
                                               Anthony Souza

Dated:   June 30, 2003              Motorcar Parts & Accessories, Inc.

                                    By: /s/ Selwyn Joffe
                                        ________________________________
                                        Selwyn Joffe, Chairman of the Board,
                                        President and Chief Executive Officer

                                      -19-

<PAGE>

                                    EXHIBIT A

                                   RESIGNATION

                                  Anthony Souza
                            16051 Avenida San Miquel
                               La Mirada, CA 90638

February 14, 2003

Motorcar Parts & Accessories, Inc.
2929 California Street
Torrance, CA 90503
Attention: Mr. Selwyn Joffe, Chairman of the Board

Gentlemen:

This shall confirm my resignation, effective at the close of business,
California time, today, as a director, officer and from any and all other
positions and capacities with or in Motorcar Parts & Accessories, Inc. and any
of its subsidiaries and affiliates, except for the consulting services I may be
providing pursuant to the Separation Agreement and Release dated as of the date
hereof.

Sincerely,

Anthony Souza

                                      -20-

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