AMENDMENT NO. 4 TO CREDIT
AGREEMENT
THIS AMENDMENT NO. 4 (this “Amendment No.
4”) is entered into as of June 26, 2009, by and among SMP
MOTOR PRODUCTS LTD., a corporation amalgamated under the laws of
Canada (“Borrower”), STANDARD MOTOR PRODUCTS, INC., a
New York corporation (“SMP”), STANRIC, INC., a Delaware
corporation (“SI”), MARDEVCO CREDIT CORP., a New York
corporation (“MCC”; and together with SMP and SI, each
individually a “Credit Party”, and collectively,
“Credit Parties”), lenders who are party from time to
time to the Credit Agreement (“Lenders”), GE CANADA
FINANCE HOLDING COMPANY, a Nova Scotia unlimited liability company,
for itself, as Lender, and in its capacity as Agent for Lenders
(“Agent”), and GE CAPITAL MARKETS, INC., as Lead
Arranger and Bookrunner.
BACKGROUND
Borrower, Agent and Lenders are parties to a
Credit Agreement dated as of December 29, 2005 (as amended,
restated, supplemented or otherwise modified from time to time, the
“Loan Agreement”) pursuant to which Agent and Lenders
provide Borrower with certain financial accommodations.
Borrower has requested that Agent and Lenders
make certain amendments to the Loan Agreement, and Agent and
Lenders are willing to do so on the terms and conditions hereafter
set forth.
NOW, THEREFORE, in consideration of any loan or
advance or grant of credit heretofore or hereafter made to or for
the account of Borrower by Agent and Lenders, and for other good
and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as
follows:
1.
Definitions . All capitalized terms not otherwise defined
herein shall have the meanings given to them in the Loan Agreement;
provided, however, that all capitalized terms not otherwise defined
herein or in the Loan Agreement shall have the meanings given to
them in the US Credit Agreement.
2.
Amendment to Loan Agreement . Subject to satisfaction of the
conditions precedent set forth in Section 3 below, the Loan
Agreement is hereby amended as follows:
(a) The
first recital is amended by deleting the phrase “Twelve
Million Dollars” and substituting therefor “Ten Million
US Dollars” and deleting each reference to “$12,000,000
and substituting therefore “US$10,000,000”.
(b) Section
1.4 is amended by deleting “$12,000,000” and
substituting therefore “US$10,000,000”.
(c) Annex
A is amended as follows:
(i) The
following defined terms are added in their appropriate alphabetical
order:
(A) “
Amendment No. 4 ” means that certain Amendment No. 4
to Credit Agreement dated as of June 26, 2009 by and among SMP
Canada, SI, MCC, SMP, Agent, and the Lenders party
thereto.
(B) “
Amendment No. 4 Effective Date ” means the date on
which the conditions precedent set forth in Section 3 of Amendment
No. 4 are satisfied.
(ii) Each
of the following defined terms is amended as follows:
(A) The
definition of “ Commitments ” is amended by
deleting the phrase “Twelve Million Dollars (US$12,000,000)
on the Closing Date” and substituting therefor “Ten
Million US Dollars (US$10,000,000) on the Amendment No. 4 Effective
Date”.
(B) The
definition of “ Commitment Termination Date ” is
amended by deleting “March 20, 2012” and substituting
therefore “March 20, 2013”.
(C) The
definition of “Index Rate” is amended and restated as
follows:
“
Index Rate ” means, for any day, a floating rate equal
to the highest rate of the following three rates set
forth in clauses (i), (ii) and (iii): (i) the rate publicly
quoted from time to time by The Wall Street Journal as the
“prime rate” (or, if The Wall Street Journal
ceases quoting a prime rate, the rate publicly quoted from time to
time as the “prime rate” by another national
publication selected by Agent in its sole discretion), (ii) the
Federal Funds Rate plus 300 basis points per annum and (iii) the
sum of (A) the LIBOR Rate for a three month LIBOR Period determined
on the second full LIBOR Business Day next preceding the first day
of such LIBOR Period plus (B) the excess of the Applicable Revolver
LIBOR Margin over the Applicable Revolver Index
Margin. Each change in any interest rate provided for in
the Agreement based upon the Index Rate shall take effect at the
time of such change in the Index Rate.
(D) The
definition of “LIBOR Rate” is amended and restated as
follows:
“
LIBOR Rate ” means for each LIBOR Period, a rate of
interest determined by Agent equal to the offered rate for deposits
in United States Dollars for the applicable LIBOR Period that
appears on Reuters Screen LIBOR01 Page as of 11:00
a.m. (London, England time), on the second full LIBOR
Business Day next preceding the first day of such LIBOR Period (or
if no such offered rate exists, such rate will be the rate of
interest determined from such other reporting service or other
information as shall be mutually acceptable to Agent a