Document:

exv10w4

Exhibit 10.4

SECOND AMENDMENT

TO REVOLVING CREDIT AND TERM LOAN AGREEMENT

     THIS SECOND AMENDMENT TO REVOLVING CREDIT AND TERM LOAN AGREEMENT (“Second Amendment”), dated
as of November 3, 2010, is made and entered into by and among MOTORCAR PARTS OF AMERICA, INC., a
New York corporation (“Borrower”), UNION BANK, N.A., a national banking association, in its
capacity as Administrative Agent (“Administrative Agent”), UNION BANK, N.A., a national banking
association, in its capacity as a Lender (“Union Bank”), and BRANCH BANKING & TRUST COMPANY, a
North Carolina banking corporation, in its capacity as a Lender (“BB&T”) (Union Bank and BB&T
herein called “Lenders”).

RECITALS:

     A. Borrower, Administrative Agent and Lenders are parties to that certain Revolving Credit
and Term Loan Agreement dated as of October 28, 2009, as amended by (i) that certain First
Amendment dated as of April 26, 2010 and (ii) that certain consent letter dated October 26, 2010
(as so amended, the “Agreement”), pursuant to which each Lender severally agreed to extend credit
to Borrower in the amounts provided for therein.

     B. Borrower has requested, by notice to Administrative Agent, that Lenders extend the
Revolving Loans Maturity Date (as such term is defined in the Agreement) from October 28, 2011 to
October 29, 2012. Lenders have agreed to such request, subject, however, to the terms and
conditions of this Second Amendment.

AGREEMENT:

     In consideration of the above recitals and of the mutual covenants and conditions contained
herein, Borrower, Administrative Agent and Lenders agree as follows:

1. Defined Terms. Initially capitalized terms used herein which are not otherwise defined
shall have the meanings assigned thereto in the Agreement.

2. Amendments To The Agreement.

     (a) The definition of “Applicable Base Lending Rate Margin” appearing in Section 1.1 of the
Agreement is hereby amended to read in full as follows:

          “’Applicable Base Lending Rate Margin’ means, with respect to all Loans, as applicable, the
margin set forth below opposite the applicable Leverage Ratio disclosed in the latest Compliance
Certificate delivered pursuant to Section 6.3(b) or (e), as applicable:

 

 

	 	 	 	 	 
	 	 	 	 	Applicable Base Lending Rate
	Level	 	Leverage Ratio	 	Margin For All Loans
	I
	 	Greater than or equal to 1.5:1.0
	 	175 basis points
	II
	 	Greater than or equal to 1.0:1.0,
but less than 1.5:1.0
	 	150 basis points
	III
	 	Less than 1.0:1.0
	 	125 basis points”

     (b) The definition of “Applicable LIBOR Lending Rate Margin” appearing in Section 1.1 of the
Agreement is hereby amended to read in full as follows:

          “’Applicable LIBOR Lending Rate Margin’ means, with respect to all Loans, as applicable, the
margin set forth below opposite the applicable Leverage Ratio disclosed in the latest Compliance
Certificate delivered pursuant to Section 6.3(b) or (e), as applicable:

	 	 	 	 	 
	 	 	 	 	Applicable LIBOR Lending
	Level	 	Leverage Ratio	 	Rate Margin For All Loans
	I
	 	Greater than or equal to 1.5:1.0
	 	300 basis points
	II
	 	Greater than or equal to 1.0:1.0,
but less than 1.5:1.0
	 	275 basis points
	III
	 	Less than 1.0:1.0
	 	250 basis points”

     (c) The definition of “Revolving Loans Maturity Date” appearing in Section 1.1 of the
Agreement is hereby amended to read in full as follows:

          “’Revolving Loans Maturity Date’ means October 29, 2012, subject to any extension thereof
pursuant to Section 2.19.”

3. Renewal Fee. On the effective date of this Second Amendment, Borrower shall pay to
Administrative Agent, for the ratable account of the Revolving Loan Lenders, a renewal fee in an
amount equal to one-tenth of one percent (1/10 of 1%) of the Revolving Credit Commitments, or
Thirty-Five Thousand Dollars ($35,000), which renewal fee shall be non-refundable.

4. Effectiveness Of This Second Amendment. This Second Amendment shall become effective as
of the date hereof when, and only when, Administrative Agent shall have received all of the
following, in form and substance satisfactory to Administrative Agent:

     (a) A counterpart of this Second Amendment, duly executed by Borrower;

     (b) A reasonable legal documentation fee, for the sole account of the Administrative Agent,
which reasonable legal documentation fee shall be non-refundable; and

     (c) Such other documents, instruments or agreements as Administrative Agent may reasonably
deem necessary in order to effect fully this Second Amendment.

 

 

5. Ratification.

     (a) Except as specifically amended hereinabove, the Agreement shall remain in full force and
effect and is hereby ratified and confirmed; and

     (b) Upon the effectiveness of this Second Amendment, each reference in the Agreement to “this
Agreement”, “hereunder”, “herein”, “hereof” or words of like import referring to the Agreement
shall mean and be a reference to the Agreement as amended by this Second Amendment.

6. Representations and Warranties. Borrower represents and warrants as follows:

     (a) Each of the representations and warranties contained in Article V of the Agreement, as
amended hereby, is hereby reaffirmed as of the date hereof, each as if set forth herein;

     (b) The execution, delivery and performance of this Second Amendment are within Borrower’s
corporate powers, have been duly authorized by all necessary corporate action, have received all
necessary approvals, if any, and do not contravene any law or any contractual restriction binding
on Borrower; and

     (c) No event has occurred and is continuing or would result from this Second Amendment which
constitutes an Event of Default under the Agreement, or would constitute an Event of Default under
the Agreement, but for the requirement that notice be given or time elapse or both.

7. Governing Law. This Second Amendment shall be deemed a contract under and subject to,
and shall be construed for all purposes and in accordance with, the laws of the State of
California.

8. Counterparts. This Second Amendment may be executed in two or more counterparts, each
of which shall be deemed an original and all of which together shall constitute one and the same
instrument.

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the date and
year first above written.

	 	 	 	 	 
	MOTORCAR PARTS OF AMERICA, INC.,

as Borrower

 	 	 
	By:  	/s/ Selwyn Joffe
 	 	 
	 	Selwyn Joffe 	 	 
	 	 	Chief Executive Officer 	 
	 

	 	 	 	 	 
	UNION BANK, N.A.,

in its capacity as Administrative Agent and as a Lender

 	 	 
	By:  	/s/ Cary L. Moore
 	 	 
	 	Cary L. Moore 	 	 
	 	Senior Vice President 	 	 
	 

	 	 	 	 	 
	BRANCH BANKING & TRUST COMPANY,

in its capacity as a Lender

 	 	 
	By:  	/s/ Kenneth M. Blackwell
 	 	 
	 	Kenneth M. Blackwell 	 	 
	 	Senior Vice Presidentexv4w1

Exhibit 4.1

	NNNNNNNNNNNN + Computershare Trust Company, N.A. 250 Royall Street Canton Massachusetts
02021 www.computershare.com NNNNNNNNN MR A SAMPLE DESIGNATION (IF ANY) ADD 1 NNNNNN ADD 2 ADD 3 ADD
4 ADD 5 ADD 6 C1234567890 J N T NNNNNN Basic Subscription 12345678901234 Privilege SUBSCRIPTION
RIGHTS CERTIFICATE THE OFFER EXPIRES AT 5:00 P.M., EASTERN TIME, ON NOVEMBER 22, 2010 (unless
extended) CONN’S, INC. SUBSCRIPTION RIGHTS FOR COMMON STOCK THIS CERTIFIES THAT the registered
owner whose name is inscribed hereon is the owner of the number of transferable subscription rights
(“Rights”) set forth above. Each Right entitles the holder thereof to subscribe for and purchase
one share of common stock, par value $0.01 per share (the “Shares”), of Conn’s, Inc., a Delaware
corporation (the “Company”), at a subscription price of $2.70 per Share (the “Subscription Price”),
rounded up to the nearest whole Share (the “Basic Subscription Privilege”), pursuant to a rights
offering (the “Rights Offering”), on the terms and subject to the conditions set forth in the
prospectus supplement dated November 8, 2010 (the “Prospectus Supplement”) and in the “Instructions
as to Use of Subscription Rights Certificates” accompanying this Subscription Rights Certificate.
The valid exercise of all of the holder’s Basic Subscription Privilege shall also entitle the
holder thereof to subscribe for and purchase Shares not purchased by the other holders of Rights
through the exercise of their Basic Subscription Privileges (the “Oversubscription Privilege”),
subject to the terms and conditions set forth in the Prospectus Supplement. If a holder elects to
exercise the Oversubscription Privilege, such holder must do so concurrently with its exercise of
the Basic Subscription Privilege. Fractional Shares will not be issued in the Rights Offering and
fractional Shares will be rounded up to the nearest whole Share with the subscription payment price
adjusted accordingly. The Rights represented by this Subscription Rights Certificate are governed
by the laws of the State of Delaware. The Company will not offer or sell any Shares that are not
subscribed for pursuant to the Basic Subscription Privilege or the Oversubscription Privilege. In
order to exercise a holder’s Rights, such holder must deliver to the Subscription Agent,
Computershare Trust Company, N.A. (“Computershare”), by 5:00 p.m., Eastern Time, on November 22,
2010 (unless extended, the “Expiration Date”), a payment in U.S. dollars by U.S. postal money order
or certified or cashier’s check drawn on a bank or branch located in the United States of America
and payable to “Computershare Trust Company, N.A. (acting as subscription agent for Conn’s, Inc.)”
for an amount equal to the number of Shares to be subscribed for under the Basic Subscription
Privilege and Oversubscription Privilege (if applicable), rounded up to the nearest whole Share,
multiplied by the Subscription Price of $2.70 per Share and either (1) a properly completed and
executed Subscription Rights Certificate, or (2) a Notice of Guaranteed Delivery guaranteeing
delivery of a properly completed and executed Subscription Rights Certificate, each in accordance
with the “Instructions as to Use of Subscription Rights Certificates” that accompany this
Subscription Rights Certificate. If a Notice of Guaranteed Delivery is used, a properly completed
and executed Subscription Certificate must be received by the Subscription Agent no later than
November 26, 2010, three business days after the Expiration Date, unless the Offer is extended. See
“The Rights Offering—Method of Exercising Subscription Rights,” “The Rights Offering—Payment
Method” and “The Rights Offering—Notice of Guaranteed Delivery” in the Prospectus Supplement
.. If
the Rights are properly exercised, Computershare will send each exercising holder, no later than
ten days after the expiration date, a confirmation showing (i) the number of Shares purchased
pursuant to the Basic Subscription Privilege, and, if applicable, the Oversubscription Privilege,
(ii) the per Share and the total purchase price for all of the Shares acquired by the holder, (iii)
any excess to be refunded by the Company to the holder as a result of payment for Shares pursuant
to the Oversubscription Privilege that such holder is not acquiring, and (iv) any additional amount
payable by the holder or any excess to be refunded to the holder. Any excess payment to be refunded
by the Company will be returned, without interest or deduction, by mail as soon as practicable.
Holder ID COY Class Rights Qty Issued Rights Cert # 123456789 XXXX Subscription Rights XXX.XXXXXX
12345678 Signature of Owner and U.S. Person for Tax Certification Signature of Co-Owner (if more
than one registered holder listed) Date (mm/dd/yyyy) 1 2 3 4 5 6 7 8 C L S X R T 2 C O Y C 1 2 3 4
5 6 . 7 8 +

 

 

	Stock certificates will not be issued for Shares offered in this rights offering. As soon as
practicable after the Expiration Date, the subscription agent will arrange for issuance through DTC
to each holder of record that has validly exercised its Rights, the Shares purchased pursuant to
such Rights. If the holder is not a DTC participant, all Shares that such holder purchases in the
rights offering will be issued in book-entry, or uncertificated, form. SAMPLE CALCULATION: To
subscribe for your Basic Subscription Privilege Shares please complete line “A” on the card below.
100 Shares = 100 Rights. 100 Rights multiplied by 0.4115 = 41.15 Basic Subscription Privilege
Shares. The maximum number of Basic Subscription Privilege Shares would be 42. Fractional Shares
will be rounded up to the nearest whole Share. If you hold less than 3 Rights in total, you can
subscribe for one Share. A. 100 x 0.4115= 42 × $2.70 = $113.40 $ (No. of Rights) (No. of Shares)
(Estimated (Payment to be remitted) Subscription Price) To subscribe for any Shares pursuant to the
Oversubscription Privilege, a holder must complete line “B” below. Please Note: Only holders who
have exercised their Basic Subscription Privilege in full may apply for Shares pursuant to the
Oversubscription Privilege. PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY SECTION 1: DETAILS OF
SUBSCRIPTION. PLEASE FILL IN ALL APPLICABLE INFORMATION. A. Basic Subscription Privilege: x 0.4115
= × $2.70 = $ (1 Rights = 0.4115 Share) (Rights Exercised) (No. of Shares (Subscription Price)
(Payment to be remitted) requested rounded up to nearest whole Share) B. Oversubscription
Privilege*: × $2.70 = $ (No. of Shares (Subscription Price) (Payment to be remitted) requested) C.
Total amount of check or money order enclosed (total of A + B): = $ * You can only over-subscribe
if you have fully exercised your Basic Subscription Privilege. SECTION 2: TO SUBSCRIBE: I hereby
irrevocably subscribe for the number of Shares indicated as the total of A and B hereon upon the
terms and conditions specified in the Prospectus relating thereto, receipt of which is
acknowledged. I hereby agree that if I fail to pay for the Shares for which I have subscribed (or
are deemed to have subscribed for as set forth above), the Company may exercise any of the remedies
set forth in the Prospectus. Signature(s) of Subscriber(s): Please give your telephone number:
Please give your e-mail address: SECTION 3: TO TRANSFER RIGHTS: For value received, of the Rights
represented by this Subscription Rights Certificate are assigned to: (Print Full Name of Assignee)
(Social Security Number): (Print Full Address): Signature(s) of Assignor(s): IMPORTANT: The
signature(s) must correspond in every particular, without alteration, with the name(s) as printed
on your Subscription Rights Certificate. Your Signature must be guaranteed by an Eligible Guarantor
Institution as that term is defined under Rule 17Ad-15 of the Securities Exchange Act of 1934,
which may include: a) a commercial bank or trust company, or b) a member firm of a domestic stock
exchange, or c) a savings bank or credit union. Signature Guaranteed: By: (Name of Bank or Firm)
(Signature of Officer and Title) METHOD OF EXERCISE OF RIGHTS: By Mail: By Express Mail or
Overnight Courier: Computershare Trust Company Computershare Trust Company Rights Offering
Attention: Voluntary Corporate Actions P.O. Box 43011 250 Royall Street, Suite V Providence, RI
02940-3011 Canton, MA 02021

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00180-of-00352.parquet"}]]