Document:

Assignment Agreement II, dated as of August 16, 2010

  
 Exhibit 10.22 

 
  
 Agreement 
 This Agreement (this “Agreement”) is entered in Beijing, the People’s
Republic of China (“PRC”, excluding the Hong Kong Special Administrative Region, the Macao Special Administrative Region and Taiwan, for the purposes of this Agreement) and dated August 16, 2010, by and among the
following parties: 
  

	(1)	1VERGE INTERNET TECHNOLOGY (BEIJING) CO., LTD. (“1Verge Internet”) 

 Legal Address: Section D, 5/F, SinoSteel Plaza, No 8, Haidian Street, Haidian District, Beijing, China 

Legal Representative: Victor Wing Cheung Koo 
  

	(2)	1VERGE INFORMATION TECHNOLOGY (BEIJING) CO., LTD. (“Beijing 1Verge Infotech”) 

Legal Address: Section A&C, 5/F, SinoSteel Plaza, No 8, Haidian Street, Haidian District, Beijing, China 

Legal Representative: QIN Qiong 
  

	(3)	JIAHEYI ADVERTISING (BEIJING) CO., LTD. (“Jiaheyi”) 

 Legal Address: Section D, 5/F, SinoSteel Plaza, No 8, Haidian Street, Haidian District, Beijing, China 

Legal Representative: QIN Qiong 
  

	(4)	QIN Qiong, a PRC citizen whose PRC identification number is 10108197109214485, and whose residential address is Room 1602, Tower 3, Palm Tree International Apartment, 8 South
Chaoyang Park Road, Beijing 100026, PRC 

  

	(5)	LIU Dele, a PRC citizen whose PRC identification number is 310101196805284437 and whose residential address is, 1701 Tower D, Sunz Garden, 98 Jianguo Road, Beijing , PRC

 (QIN Qiong and LIU Dele each hereafter referred to as a “VIE Shareholder”, and collectively “VIE
Shareholders”) 
 (individually a “Party” and collectively the “Parties”) 

WHEREAS: 
  

	A.	QIN Qiong currently holds an 80% equity interest (amounting to RMB 80,000) in Jiaheyi and LIU Dele holds a 20% equity interest (amounting to RMB 20,000) in Jiaheyi.

  

	B.	In order for Jiaheyi to subscribe to the increased registered capital of Beijing 1Verge Infotech, the VIE Shareholders agreed to extend loans to Jiaheyi in several instalments in
an aggregate amount of RMB 19,000,000 (the “Loans”). For this purpose, VIE Shareholders requested financial supports from 1Verge Internet. 1Verge Internet agreed to provide financial support to facilitate the VIE Shareholders’
extension of Loans to Jiaheyi. 

  
  

					
	Agreement	  	- 1 -	  	

  
  

  

	C.	As a result, 1Verge Internet extended the principal amount of the Loans in several instalments to the VIE Shareholders, who in turn extended the principal amount of the Loans to
Jiaheyi. Jiaheyi has applied all such Loans to subscribe to the increased registered capital of Beijing 1Verge Infotech. After this capital increase, the registered capital of Beijing 1Verge Infotech has been increased to RMB 20,000,000, in which
Jiaheyi held a 95% equity interest (amounting to RMB 19,000,000), QIN Qiong held a 4% equity interest (amounting to RMB 800,000) and LIU Dele held a 1% equity interest (amounting to RMB 200,000). 

 

	D.	In consideration of 1Verge Internet and the VIE Shareholders’s support in assisting Jiaheyi to subscribe to the increased registered capital of Beijing 1Verge Infotech,
Jiaheyi concluded a series of agreements with 1Verge Internet and the VIE Shareholders, a list of which is appended hereto as Appendix 1 (“Jiaheyi VIE Agreements”). Pursuant to the Jiaheyi VIE Agreements, Jiaheyi, as a 95%
shareholder of Beijing 1Verge Infotech, agreed not to, among others, transfer or otherwise dispose of the equity interests it held in Beijing 1Verge Infotech without the prior written consent of 1Verge Internet and the VIE Shareholders.

  

	E.	On May 19, 2010 1Verge Internet and the VIE Shareholders procured that Jiaheyi transfer its 95% equity interest (amounting to RMB 19,000,000) to the VIE Shareholders,
for consideration of [RMB 19,000,000] (“Equity Transfer”). After this Equity Transfer, QIN Qiong holds an 80% equity interest (amounting to RMB 16,000,000) in Beijing 1Verge Infotech and LIU Dele holds a 20% equity interest
(amounting to RMB 4,000,000). 

 THEREFORE, the Parties, through friendly negotiation based on principles of equal and mutual
benefit, agree as follows: 
  

	1.	Acknowledgement and Authorization of the Equity Transfer 

 1Verge Internet and the VIE Shareholders hereby confirm and acknowledge that the Equity Transfer fully complied with the Jiaheyi VIE Agreements and has been duly authorized and acknowledged by 1Verge Internet and
the VIE Shareholders. 
  

	2.	Assignment of Contractual Rights and Obligations / Responsibilities 

 Notwithstanding any provisions herein or in the Jiaheyi VIE Agreements, the Parties hereby confirm and acknowledge that: 
  

	 	2.1	All rights that Jiaheyi shall enjoy and obligations that is shall assume under the Jiaheyi VIE Agreements shall be duly and fully transferred to the VIE Shareholders upon the
completion of the Equity Transfer, including without limitation Jiaheyi’s obligation to repay the Loans to the VIE Shareholders in accordance with and in a manner as stipulated under the Jiaheyi VIE Agreements, and the power and authority to
designate and authorize a person designated by 1Verge Internet to vote on Jiaheyi’s behalf at the shareholders' meetings of Beijing 1Verge Infotech and exercise the full voting rights as Beijing 1Verge Infotech’s shareholder as granted to
Jiaheyi by law and under the Articles of Association of Beijing 1Verge Infotech. 

  
  

					
	Agreement	  	- 2 -	  	

  
  

  

	 	2.2	Upon the completion of the Equity Transfer and once Jiaheyi is no longer a registered shareholder of Beijing 1Verge Infotech, Jiaheyi shall not enjoy any rights, nor shall it
assume any obligations or responsibilities, under or arising from the Jiaheyi VIE Agreements. 

  

	 	2.3	Nothing in this Agreement shall be construed as an exemption of Jiaheyi from its obligations or responsibilities as a result of its breach of the Jiaheyi VIE Agreements before
the completion of the Equity Transfer. 

  

	 	2.4	All Jiaheyi VIE Agreements to which Jiaheyi is party shall be amended and restated in form and substance satisfactory to 1Verge Internet. 

 

	 	2.5	All powers of attorney issued by Jiaheyi in its capacity as a registered shareholder of Beijing 1Verge Infotech according to the Jiaheyi VIE Agreements are hereby revoked,
nullified and invalidated. 

  

	3.	Taxes and Expenses 

 Any taxes,
expenses or costs that will be incurred by or be applicable to Jiaheyi and/or the VIE Shareholders in connection with, relating to or arising from the Equity Transfer or the assignment of the contractual rights and obligations / responsibilities set
forth in Section 2 hereunder shall be solely borne by 1Verge Internet. 
  

	4.	No Assignment  

 Neither Party shall
assign any of its rights or obligations hereunder without the prior written consent of the other Parties, except that 1Verge Internet may at its discretion assign its rights and obligations under this Agreement to its affiliates or subsidiaries.

  

	5.	Effectiveness 

 This Agreement will be
effective upon its being signed by the Parties hereunder, notwithstanding that the Assignment of the Contractual Rights and Obligations / Responsibilities in Section 2 shall be effective retroactively as of the date of the completion of the
Equity Transfer. 

  
  

					
	Agreement	  	- 3 -	  	

  
  

  

	6.	Governing Law and Dispute Resolution 

  

	 	6.1	This Agreement shall be governed by and construed in accordance with the laws of the PRC. 

 

	 	6.2	If any dispute in connection with this Agreement arises, the Parties shall attempt in the first instance to resolve such dispute through friendly consultation or mediation.

  

	 	6.3	In case no settlement can be reached through friendly consultation, either Party may submit such matter to the China International Economic and Trade Arbitration Commission
(“CIETAC”) for arbitration in accordance with the then current rules of CIETAC. The arbitration proceedings shall take place in Beijing and shall be conducted in Chinese. The arbitration award shall be final and binding upon all the
Parties. This article shall not be influenced by the termination or elimination of this Agreement. 

  

	7.	Languages and Counterparts 

 This
Agreement is executed in Five (5) originals in English and each Party shall retain 1 original. 
 [The space below is intentionally
left blank.] 

  
  

					
	Agreement	  	- 4 -	  	

  
  

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on their behalf by a
duly authorized representative as of the date first written above. 
 1VERGE INTERNET TECHNOLOGY (BEIJING) CO., LTD. 

(Company Seal) 
  

			
	By:	 	 /s/ Victor Koo

	Authorized Representative: Victor KOO

 1VERGE INFORMATION TECHNOLOGY (BEIJING) CO., LTD. 
 (Company Seal) 

 

			
	By:	 	 /s/ Qin Qiong

	Authorized Representative: QIN Qiong

 JIAHEYI ADVERTISING
(BEIJING) CO., LTD. 
 (Company Seal) 
  

			
	By:	 	 /s/ Qin Qiong

	Authorized Representative: QIN Qiong

 QIN QIONG 
  

			
	By:	 	 /s/ Qin Qiong

LIU DELE 
  

			
	By:	 	 /s/ Liu Dele

  
  

					
	Agreement	  		  	

  
  

  
 [Appendix 1]

 List of Jiaheyi VIE Agreements 
  

	1.	Loan Agreement among QIN Qiong, LIU Dele and Jiaheyi, dated November 19, 2007; 

  

	2.	Equity Interest Pledge Agreement among QIN Qiong, LIU Dele, Jiaheyi and 1Verge Internet, dated November 19, 2007; 

 

	3.	Share Option Agreement among QIN Qiong, LIU Dele, Jiaheyi and 1Verge Internet, dated November 19, 2007; 

 

	4.	Business Operations Agreement among QIN Qiong, LIU Dele, Jiaheyi and 1Verge Internet, dated November 19, 2007; and 

 

	5.	2 Powers of Attorney issued by Jiaheyi in favour of Mr. Victor KOO in March 2006 and November 2007, respectively. 

  
  

					
	Agreement	  	- 6 -Seventh Amendment to Revolving Bank Line of Credit Agreement

  
 Exhibit 10.99

 November 8, 2010 
 The Coast Distribution System, Inc. 
 350 Woodview Avenue 

Morgan Hill, California 95037 
  

	 	Re:	Seventh Amendment 

 Ladies and Gentlemen:

 The Coast Distribution System, Inc., a Delaware corporation (“Coast Delaware”), United Sales &
Warehouse of Texas, Inc., a Texas corporation (“United Sales”), C/P Products Corp., an Indiana corporation (“C/P”), Mohawk Trailer Supply, Inc., a New York corporation (“Mohawk”), and Les
Systemes De Distribution Coast (Canada) Inc. The Coast Distribution System (Canada) Inc., a corporation organized under the laws of the Province of Quebec (“Coast Canada”) (Coast Delaware, United Sales, C/P, Mohawk, and Coast Canada
are referred to individually as “Borrower” and collectively as “Borrowers”), and Bank of America, N.A., (in its individual capacity, “US Lender”), acting by and through Bank of America, N.A., a
national banking association, as agent for US Lender (in such capacity, “Agent”) and Bank of America, N.A. (acting through its Canada branch) (“Canadian Lender”), (US Lender, acting through Agent, and Canadian
Lender are referred to collectively as “Lender”), have entered into that certain Third Amended and Restated Loan and Security Agreement dated August 30, 2005 (the “Security Agreement”). From time to time
thereafter, Borrowers and Lender may have executed various amendments (each an “Amendment” and collectively the “Amendments”) to the Security Agreement (the Security Agreement and the Amendments hereinafter are
referred to, collectively, as the “Agreement”). Borrowers and Lender now desire to further amend the Agreement as provided herein, subject to the terms and conditions hereinafter set forth. 

NOW, THEREFORE, in consideration of the foregoing recitals, the mutual covenants and agreements set forth herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. The Agreement hereby is amended as follows: 
 (a) Section 1
of the Agreement is hereby amended to add the following definitions in their proper alphabetical order: 
 “Applicable
Margin” shall mean the margin set forth below, with respect to any LIBOR Rate Loan, Canadian Prime Rate Loan and US Prime Rate Loan (each, an “Interest Type”, as hereinafter defined) in effect from time to time, provided, that the
initial Applicable Margin shall be set at Level 3 until the first day of the month following receipt of Borrowers’ September, 2010 Form 10(Q). Thereafter, the Applicable Margin shall be adjusted quarterly on the first day of the month
following receipt of Borrowers’ Form 10(Q) or Form 10(K), as applicable, based on Borrowers’ consolidated Net Profit for the 12 month period ending on the date of calculation and Borrowers’ consolidated Fixed Charge Coverage Ratio for
the 12 month period ending on the date of calculation, in each case, as shown on Borrowers’ financial statements set forth in Borrowers’ Form 10(Q) or Form 10(K), as applicable (provided that, if Borrowers fail to deliver such Form 10(Q)
or Form 10(K), as applicable, within the time period required by Subsection 9(f) of this Agreement, the Applicable Margin shall conclusively be presumed to be equal to the highest level set forth on the chart below from the date such Form 10(Q) or
Form 10(K), as applicable, was required to be delivered until the first day of the month following receipt of such Form 10(Q) or Form 10(K), as applicable, as set forth on the following chart: 

  
 1 

  

									
	 	 	 Column A
	 	 Column B
	 	 Column C
	 	 Column D

	 Level
	 	 Trailing Twelve

Month Net Profit
	 	 Fixed Charge

Coverage

Ratio
	 	 Applicable

Margin For LIBOR

Rate Loans
 (in
basis points)
	 	 Applicable Margin for US
Prime Rate Loans and

Canadian Prime Rate Loans
 (in basis points)

	 (1)
	 	.>$1,250,000	 	>3.0:1.0	 	250 bps	 	100 bps
					
	 (2)
	 	 >$625,000<
 $1,250,000
	 	 >1.50:1.0
 <3.0:1.0
	 	275 bps	 	125 bps
					
	 (3)
	 	<$625,000	 	 >1.10:1.0
 <1.50:1.0
	 	300 bps	 	150 bps

 ; provided, however, that after the
occurrence and during the continuance of an Event of Default, the Applicable Margin shall be the default rate as provided in Section 4(a)(v). By way of example, and for purposes of clarification only, if the Applicable Margin is at Level
2 and Borrowers achieve a trailing twelve month Fixed Charge Coverage Ratio of 3.0:1.0 but the trailing twelve month Net Profit is $800,000, then the Applicable Margin would remain at Level 2. If, as a result of any restatement of or other
adjustment to the financial statements, borrowing base certificates or Inventory or Accounts reports of Borrowers, or the results of audits or appraisals which do not confirm the information provided in borrowing base certificates or for any other
reason, Lender determines that (a) the consolidated Net Profit for the 12 month period ending on the date of calculation or the consolidated Fixed Charge Coverage Ratio, for the 12 month period ending on the date of calculation, was inaccurate
and (b) a proper calculation of the consolidated Net Profit for the 12 month period ending on the date of calculation or the consolidated Fixed Charge Coverage Ratio for the 12 month period ending on the date of calculation would have resulted
in different pricing for any period, then (i) if the proper calculation of the consolidated Net Profit for the 12 month period ending on the date of calculation or the consolidated Fixed Charge Coverage Ratio for the 12 month period ending on
the date of calculation would have resulted in higher pricing for such period, Borrowers shall automatically and retroactively be obligated to pay to Lender, promptly on demand by Lender, an amount equal to the excess of the amount of interest and
fees that should have been paid for such period over the amount of interest and fees actually paid for such period; and (ii) if the proper calculation of the trailing twelve month Net Profit or Fixed Charge Coverage Ratio would have resulted in
lower pricing for such period, Lender shall not have any obligation to repay any interest or fees to Borrowers; provided that if, as a result of any restatement or other event, a proper calculation of the trailing twelve month Net Profit or Fixed
Charge Coverage Ratio would have resulted in higher pricing for one or more periods and lower pricing for one or more other periods (due to the shifting of income or expenses from one period to another period or any similar reason), then the amount
payable by Borrowers pursuant to clause (i) above shall be based upon the excess, if any, of the amount of interest and fees that should have been paid for all applicable periods over the amount of interest and fees paid for all such periods.

 “Canadian Excess Availability” shall mean, as of any date of determination by Lender, the lesser of
(i) the Canadian Maximum Loan Sublimit less the Canadian Revolving Credit Outstandings and (ii) the Canadian Borrowing Base Availability less the Canadian Revolving Credit Outstandings, in each case as of the close of business on such
date. 
 “Dilution” shall mean, with respect to any period, the percentage obtained by dividing (i) the
sum of non-cash credits against Accounts (including, but not limited to returns and adjustments) of Borrowers for such period, plus pending or probable, but not yet applied, non-cash credits against Accounts of Borrowers for such period, as
determined by Lender in its sole discretion by (ii) gross invoiced sales of Borrowers for such period. 
 “Net
Profit” shall mean for any period, Pre Tax Profit minus income tax accrued for such period, all on a consolidated basis as to Borrowers and their Subsidiaries. 

  
 2 

  
 “US Excess
Availability” shall mean, as of any date of determination by Lender, the lesser of (i) the US Maximum Loan Sublimit less the U.S. Revolving Credit Outstandings and (ii) the US Borrowing Base Availability less the US Revolving
Credit Outstandings, in each case as of the close of business on such date. 
 (b) Subsection 1 of the Agreement is hereby
amended to delete the following definitions: 
 “Adjustment Date”, “Canadian US Base Rate Loan”,
“Canadian US Based Rate”, “EBIT”, “Initial Rate of Interest” and “Net Income”. 
 (c)
Subsection 1 of the Agreement is hereby amended to amend and restate the following definitions in their entirety as follows: 
 “Canadian Inventory Advance Sublimit” shall mean an amount up to the lesser of (i) Two Million Five Hundred Thousand and No/100 Dollars ($2,500,000.00) or (ii) (a) from
June 1st of each year through January 31st of each following year, fifty percent (50%) of the value of
Eligible Inventory owned by Coast Canada and (b) from February 1st of each year through May 31st of each year, fifty five percent (55%) of the value of Eligible Inventory owned by Coast Canada; provided, however, that in no event shall the Inventory advances under the Canadian
Inventory Advance Sublimit plus the advances under the US Inventory Advance Sublimit exceed Fifteen Million and No/100 Dollars ($15,000,000.00); provided further that, Lender may reduce the lending formula with respect to Coast Canada
Eligible Inventory in its Permitted Discretion. 
 “Canadian Prime Based Rate” shall mean the Canadian Prime
Rate plus the Applicable Margin. 
 “Interest Type” shall mean the distinction between advances bearing
interest at the LIBOR Rate, Canadian Prime Rate and the US Prime Rate. 
 “LIBOR Based Rate” shall mean the
LIBOR Rate plus the Applicable Margin. 
 “US Inventory Advance Sublimit” shall mean the
lesser of (i) Twelve Million Five Hundred Thousand and No/100 Dollars ($12,500,000.00) or (ii) (a) from June 1st of each year through January 31st of each following year, fifty percent (50%) of the value of Eligible Inventory owned by Coast US and
(b) from February 1st of each year through
May 31st of each year, fifty five percent
(55%) of the value of Eligible Inventory owned by Coast US; provided, however, that in no event shall the Inventory advances under the US Inventory Advance Sublimit plus advances under the Canadian Inventory Advance
Sublimit exceed Fifteen Million and No/100 Dollars ($15,00,000.00); provided further that US Lender may reduce the lending formula with respect to Coast US’ Eligible Inventory in its Permitted Discretion. 

“US Prime Based Rate” shall mean the US Prime Rate plus the Applicable Margin. 

(d) The Agreement is hereby amended to delete each reference to the words “and Canadian US Base Rate Loan”, “and
Canadian US Base Rate Loans”, 
 or Canadian US Base Rate Loan”, “or Canadian US Base Rate Loans”, and “or a Canadian
US Base Rate Loan”. 
 (e) Subsection 2(a)(i) of the Agreement is hereby amended and restated in its entirety to
read as follows: 
 (i) an amount equal to up to eighty five percent (85%) of the face amount of Coast
US’ Eligible Accounts; provided that Agent may reduce the lending formula with respect to Coast US’ Eligible Accounts in Agent’s Permitted Discretion; provided further that, without limitation of the foregoing, such advance rate shall
be reduced by one (1) percentage point for each whole or partial percentage point by which Dilution (as determined by Agent in good faith based on the results of the most recent twelve (12) month period for which Agent has conducted a
field audit of Borrowers) exceeds five percent (5%); plus 

  
 3 

  
 (f) Subsection
2(a)(iii) of the Agreement is hereby amended and restated in its entirety to read as follows: 
 (iii) such
reserves as Agent elects, in its Permitted Discretion, to establish from time to time, including, without limitation, a reserve (a) of three (3) months rent for each leased location in which a landlord’s waiver acceptable to Agent in
its sole discretion has not been executed and delivered to Agent and (b) with respect to Hedging Obligations (which shall include, without limitation, the FX Reserve), in an amount determined by Agent in its Permitted Discretion; provided, that
the US Borrowing Base Availability shall in no event exceed the US Maximum Loan Sublimit, and provided further that the aggregate unpaid principal balance of the US Revolving Credit Outstandings plus the aggregate unpaid principal balance of
Canadian Revolving Credit Outstandings shall in no event exceed the Maximum Loan Limit. 
 (g) Subsection 2(b)(i) of the
Agreement is hereby amended and restated in its entirety as follows: 
 (i) up to eighty five percent
(85%) of the face amount of Coast Canada’s Eligible Accounts; provided that Canadian Lender may reduce the lending formula with respect to Coast Canada’ Eligible Accounts in its Permitted Discretion; provided further that, without
limitation of the foregoing, such advance rate shall be reduced by one (1) percentage point for each whole or partial percentage point by which Dilution (as determined by Canadian Lender in good faith based on the results of the most recent
twelve (12) month period for which Canadian Lender has conducted a field audit of Borrowers) exceeds five percent (5%); plus 
 (h) Subsection 2(b)(iii) of the Agreement is hereby amended and restated in its entirety as follows: 
 (iii) such reserves as Canadian Lender elects, in its Permitted Discretion, to establish from time to time, including, without limitation, (a) the FX Reserve, (b) a reserve of three
(3) months rent for each leased location in which a landlord’s waiver acceptable to Agent in its sole discretion has not been executed and delivered to Agent and (c) a reserve in the amount of $2,000 per employee. In connection
therewith, Canadian Borrower shall furnish a report to Canadian Lender on the first day of each month stating the number of its employees. 
 (i) Subsection 2(b) of the Agreement is hereby amended to delete the reference to “ABN AMRO” set forth in the second sentence of the fourth paragraph thereof and to substitute “Bank
of America, N.A. (acting through its Canada branch)” in its stead. 
 (j) Subsection 3(a) of the Agreement is hereby
amended to amend and restate the third sentence in its entirety as follows: 
 A Letter of Credit fee shall
accrue, at a per annum rate equal to the Applicable Margin in effect for Libor Rate Loans on the aggregate undrawn face amount of all Letters of Credit outstanding from time to time, which fee Borrowers shall pay in arrears in monthly installments
on the last Business Day of each month. 
 (k) Subsections 4(a)(i),(ii),(iii) and (iv) of the Agreement are hereby
amended and restated in their entirety as follows: 
 (i) For all US Prime Rate Loans advanced to Coast US, a per
annum rate of interest equal to the US Prime Based Rate in effect from time to time, payable on the last Business Day of each month in arrears. Said rate of interest shall increase or decrease by an amount equal to each increase or decrease in the
US Prime Rate effective on the effective date of each such change in the US Prime Rate. 
 (ii) For all Canadian
Prime Rate Loans advanced to Coast Canada, a per annum rate of interest equal to the Canadian Prime Based Rate in effect from time to time, payable on the last Business Day of each month in arrears. Said rate of interest shall increase or decrease
by an amount equal to each 

  
 4 

 
increase or decrease in the Canadian Prime Rate effective on the effective date of each such change in the Canadian Prime Rate. 

(iii) Intentionally Omitted. 
 (iv) For all LIBOR Rate Loans advanced to Borrowers, a per annum rate of interest equal to the LIBOR Based Rate for the applicable Interest Period, such rate to remain fixed for such Interest Period.
“Interest Period” shall mean, in connection with the making, conversion or continuation of any LIBOR Rate Loan to (i) Coast U.S., an interest period selected by Borrowers to apply, which interest period shall be 30, 60, or 90
days; provided, however, that 
 (a) the Interest Period shall commence on the date the Loan is made or continued
as, or converted into, a LIBOR Rate Loan, and shall expire on the numerically corresponding day in the calendar month at its end; 
 (b) if any Interest Period commences on a day for which there is no corresponding day in the calendar month at its end or if such corresponding day falls after the last Business Day of such month, then
the Interest Period shall expire on the last Business Day of such month; and if any Interest Period would expire on a day that is not a Business Day, the period shall expire on the next Business Day; and 

(c) Borrowers may not select any Interest Period for a LIBOR Rate Revolving Loan which would extend beyond the last day of
the Original Term. 
 (l) Subsection 4(a)(viii) of the Agreement is hereby deleted. 

(m) Subsection 4(c)(v) is hereby amended and restated in its entirety as follows: 

(c)(v) Amendment Fee. Borrowers shall pay to Lender a one time fee of Twenty Five Thousand and No/100
Dollars ($25,000.00) which shall be fully earned and payable on the date hereof. 
 (n) Subsection 4(c) of the Agreement
is hereby amended to add the following clause (vi) at the end thereof: 
 (vi) Annual Fee.
Borrowers shall pay to Lender an annual fee of Twenty Five Thousand and No/100 Dollars ($25,000.00) which shall be fully earned and payable on July 1, 2011 and on the same day of each year thereafter during the Original Term. 

(o) Subsection 9(a) of the Agreement is hereby amended and restated in its entirety as follows: 

(a) Weekly Reports. 
 At least once each week, each Borrower, or Coast Delaware on behalf of the Borrowers comprising Coast US, shall deliver to Lender (i) an executed weekly loan report and certificate in Lender’s
then current form, which also summarizes the prior week’s changes in such numbers and (ii) reports of sales, including credits issued and collections received and summarizing the prior week’s changes in all such numbers, accompanied
by copies of each such Borrower’s sales journal and credit memo journal for the relevant period, provided that each Borrower, or Coast Delaware on behalf of the Borrowers comprising Coast US, shall only be required to tender such reports,
certificate and copies at least once each month, but in no event later than twenty (20) days after the first day of each month, if (x) there exists no Event of Default nor any event which, with the passage of time or giving of notice, will
become an Event of Default and (y) (A) US Excess Availability at any time during the immediately preceding sixty (60) days is not less than $3,000,000 for Coast US and (B) Canadian Excess Availability at any time during the
immediately preceding sixty (60) days is not less than $2,500,000 for Coast Canada; provided further, that if at any time after which such Borrower is only required to deliver such reports, certificate and copies each month, instead of weekly,
(1) there exists an Event of Default or an event which with the passage of time or giving of notice, will become an Event of Default, or (2) (a) US Excess Availability at any time during the immediately preceding sixty (60) days
is less than $3,000,000.00 for Coast US or (b) Canadian Excess Availability at any time during the 

  
 5 

 
immediately preceding sixty (60) days is less than $2,500,000 for Coast Canada, then such Borrower shall be required to deliver such reports, certificate and copies at least weekly until
each of the foregoing clauses (x) and (y) are satisfied for a period of not less than sixty (60) days. 
 (p)
Subsection 9(f) of the Agreement is hereby amended and restated in its entirety as follows: 
 (f) Public
Reporting. 
 Promptly after the filing thereof, but in no event later than (i) forty five (45) days following the filing with
the Securities and Exchange Commission (the “SEC”) of a Borrower’s Form 10(Q) and (ii) ninety (90) days following the filing with the SEC of a Borrower’s Form 10(K), each Borrower shall deliver to Lender a copy
of such Form 10(Q) or Form 10(K), as the case may be, together with any registration statements or any annual, quarterly, monthly or other regular report which (x) any Borrower or any of its Subsidiaries filed with the SEC or any reports or
proxy statements delivered to its shareholders during the fiscal period covered by that Form 10(Q) or Form 10(K), as the case may be, and (y) was not theretofore delivered to Lender. 

(q) Section 10 of the Agreement is hereby amended to delete the date of July 10, 2011 set forth in the first sentence
thereof and substituting the date of July 10, 2014 in its stead. 
 (r) Subsection 12(e) (iii) of the Agreement
is hereby deleted. 
 (s) Subsection 13(e) of the Agreement is hereby amended and restated in its entirety as follows:

 (e) Dividends, Distributions and Redemptions. 
 Borrowers shall not declare or pay any dividend or other distribution (whether in cash or in kind) on any class of their stock (if a Borrower is a corporation) or on account of any equity interest in
Borrowers (if a Borrower is a partnership, limited liability company or other type of entity) or redeem or repurchase shares of their respective stock. Notwithstanding the foregoing, Borrowers may pay dividends in an amount not to exceed 50% of
Borrowers’ consolidated Net Profit for the 12 month period ending on the date of calculation provided that (i) no Event of Default has occurred and is continuing or would result therefrom, (ii) US Excess Availability at all times
during for the ninety (90) day period ending on the date of such payment, after giving pro forma effect to such payment, equals or exceeds $4,000,000.00, (iii) the Fixed Charge Coverage Ratio for the most recently ended twelve
(12) month period for which Lender has received the financial statements of Borrowers pursuant to Section 9 (c) of the Agreement is at least 1.50:1.0, after giving pro forma effect to such payment and (iv) Borrowers gives Lender
sufficient documentation to verify compliance with this paragraph five (5) Business Days prior to the payment. 
 (t)
Subsection 14 of the Agreement is hereby amended and restated in its entirety as follows 
 (a) Fixed Charge Coverage
Ratio. 
 Borrowers shall not permit their Fixed Charge Coverage Ratio for each period set forth below to be less than the ratio set
forth below for the corresponding period set forth below: 
  

					
	 Period
	  	Ratio	 
	 For the 6 month period ending on June 30, 2010
	  	 	1.10:1.0	  
		
	 For the 9 month period ending on September 30, 2010
	  	 	2.20:1.0	  
		
	 For the 12 month period ending on December 31, 2010 and for each twelve (12) month period ending on the last day of each
fiscal quarter thereafter
	  	 	1.10:1.0	  

  
 6 

  
 (b) Capital
Expenditures. 
 Except for Capital Expenditures funded by Indebtedness as permitted under subsection 13(b), Borrowers, on a
consolidated basis, shall not make any Capital Expenditures if, after giving effect to such Capital Expenditures, the aggregate cost of all Capital Expenditures would exceed One Million Two Hundred Thousand and No/100 Dollars ($1,200,000.00) during
any Fiscal Year. 
 (u) Section 21 of the Agreement is hereby amended and restated in its entirety as follows:

 21. Notice. 
 All written notices and other written communications with respect to this Agreement shall be sent by ordinary, certified or overnight mail, by telecopy or delivered in person as follows, unless such
address is changed by written notice given in accordance with the provisions of this Section 21: 
 If to Agent, US Lender
or Canadian Lender: 
 Bank of America, N.A. 
 400 4th Street 
 Mail Code: OR1-110-01-15 

Lake Oswego, OR 97034 
 Attention: John Mundstock 
 Telecopy: (503) 303-6076 

Email: john.mundstock@baml.com 
 With a copy to: 
 Bank of America, N.A. 

135 S. LaSalle St. 
 Mail Code: IL4-135-09-27 
 Chicago, Illinois 60603 

Attn: Steve Fenton, Assistant General Counsel 
 Telecopy: (212) 901-7855 
 Email: steve.fenton@bankofamerica.com 

If to Borrowers: 
 350 Woodview Avenue 
 Morgan Hill, California 95037 

Attention: Sandra Knell, Executive Vice President and Chief Financial Officer 

Telecopy: (408) 782-7790 
 Email: sknell@coastdist.com 
 With a copy to: 

Stradling, Yocca, Carlson & Rauth 
 660 Newport Center Drive, Suite 1600 
 Newport Beach, California 92660 

Attention: Ben A. Frydman, Esq. 
 Telecopy: (949) 725-4100 
 Email: bfrydman@sycr.com 

Each notice given in the manner set forth above shall be deemed received upon actual receipt thereof, or refusal of delivery, by the Person to whom such
notice is addressed. 

  
 7 

  
 2. Lender shall
release its interest in any life insurance policy insuring the life of Thomas McGuire and assigned to Lender. 
 3. The
Coast Distribution System, Inc. shall, within ninety (90) days of the date hereof, tender to Lender replacement stock certificates with respect to all of the outstanding capital stock of 9002-1288 Quebec, Inc. pledged to Lender and, in
connection therewith, shall execute and deliver to Lender all documents reasonably requested by Lender. 
 4. Borrowers
represent and warrant to Lender that this Amendment has been approved by all necessary corporate action, and each individual signing below represents and warrants that he or she is fully authorized to do so. 

5. Except as expressly amended hereby and by any other supplemental documents or instruments executed by either party hereto in
order to effectuate the transactions contemplated by this Amendment, the Agreement and all Exhibits thereto are ratified and confirmed by Borrowers and Lender and remain in full force and effect in accordance with their terms. 

6. This Amendment may be executed in any number of counterparts, each of which shall be an original, but all of which, taken
together, shall constitute one and the same agreement. This Amendment may be delivered by facsimile, and when so delivered will have the same force and effect as delivery of an original signature. 

7. Borrowers shall reimburse Lender for all reasonable attorney’s fees (whether for internal or outside counsel) incurred by
Lender in connection with the documentation and consummation of this Seventh Amendment to the Agreement. 
 (Remainder of page
intentionally blank; signatures follow) 

  
 8 

  
 
			
	LENDER:
	
	BANK OF AMERICA, N.A., as Agent
		
	By:	 	 /s/ JOHN MUNDSTOCK

		
	Title:	 	Senior Vice President
	
	BANK OF AMERICA, N.A., as US Lender
		
	By:	 	 /s/ JOHN MUNDSTOCK

		
	Title:	 	Senior Vice President
	
	BANK OF AMERICA, N.A., acting through its Canada branch, as Canadian Lender
		
	 By:
	 	 /s/ MEDINA SALES De ANDRADE

		
	 Title:
	 	Vice President

  
 9 

  
 
			
	BORROWERS:
	
	THE COAST DISTRIBUTION SYSTEM, INC.
		
	By:	 	 /s/ SANDRA A. KNELL

		
	Title:	 	Executive Vice President & CFO
	
	UNITED SALES & WAREHOUSE OF TEXAS, INC.
		
	By:	 	 /s/ SANDRA A. KNELL

		
	Title:	 	Executive Vice President & CFO
	
	C/P PRODUCTS, CORP.
		
	By	 	 /s/ SANDRA A. KNELL

		
	Title:	 	Executive Vice President & CFO
	
	MOHAWK TRAILER SUPPLY, INC.
		
	By:	 	 /s/ SANDRA A. KNELL

		
	Title:	 	Executive Vice President & CFO
	
	LES SYSTEMES DE DISTRIBUTION COAST (CANADA) INC. THE COAST DISTRIBUTION SYSTEM (CANADA) INC.
		
	By:	 	 /s/ SANDRA A. KNELL

		
	Title:	 	Executive Vice President & CFO

  
 10 

  
 GUARANTOR’S
ACKNOWLEDGMENT 
 The undersigned guarantor acknowledges that Bank of America, N.A., (in its individual capacity, “US Lender”),
acting by and through Bank of America, N.A., as agent for US Lender (in such capacity, “Agent”) and Bank of America, N.A. (acting through its Canada branch), (“Canadian Lender”) (US Lender, acting through Agent, and Canadian
Lender are referred to collectively as “Lender”) have no obligation to provide it with notice of, or to obtain its consent to, the terms of the foregoing Seventh Amendment to Loan and Security Agreement (the “Seventh Amendment”).
The undersigned guarantor nevertheless: (i) acknowledges and agrees to the terms and conditions of the Seventh Amendment; and (ii) acknowledges that its guaranty remains fully valid, binding, and enforceable. 

 

			
	9002-1288 QUEBEC INC.
		
	By:	 	 /s/ SANDRA A. KNELL

		
	Title:	 	Executive Vice President

  
 11

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