CONSENT AND AMENDMENT NO. 5
TO SECOND AMENDED AND
RESTATED CREDIT AGREEMENT
THIS CONSENT AND AMENDMENT NO. 5
(this "Amendment No. 5") is entered into
as of May 1, 2009, by and among 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 "Borrower, and collectively, "Borrowers"), SMP
MOTOR PRODUCTS
LTD., a corporation amalgamated under the laws of Canada ("SMP
Canada"; and
together with Borrowers, each a "Credit Party", and collectively,
"Credit
Parties"), lenders who are party to the Credit Agreement
("Lenders"), GENERAL
ELECTRIC CAPITAL CORPORATION, a Delaware corporation, for itself,
as Lender, and
in its capacity as Agent for Lenders ("Agent"), BANK OF AMERICA,
N.A., for
itself, as Lender, and as a Co-Syndication Agent, WACHOVIA BANK,
N.A., for
itself, as Lender, and as a Co-Syndication Agent and JP MORGAN
CHASE BANK, N.
A., for itself, as a Lender, and as Documentation Agent.
BACKGROUND
Borrowers, Agent and Lenders are
parties to a Second Amended and Restated
Credit Agreement dated as of March 20, 2007 (as amended, restated,
supplemented
or otherwise modified from time to time, the "Loan Agreement")
pursuant to which
Agent and Lenders provide Borrowers with certain financial
accommodations.
Borrowers have 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 Borrowers 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.
2. Amendment to Loan Agreement.
Subject to satisfaction of the conditions
precedent set forth in Section 4 below, the Loan Agreement is
hereby amended as
follows:
(a) Annex A is amended as follows:
(i) The following defined terms are added in their appropriate
alphabetical order:
(A) "Amendment No. 5" means that certain Consent and
Amendment No. 5 to Second Amended and Restated Credit
Agreement dated as of May 1, 2009 by and among SMP, SI, MCC,
SMP Canada, Agent, and the Lenders party thereto.
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(B) "Amendment No. 5 Effective Date" means
the date on
which the conditions precedent set forth in Section 4 of
Amendment No. 5 are satisfied.
(C) "Exchange Offer" means SMP's Offer to Exchange 15%
Convertible Subordinated Debentures due 2011 for up to
$20,000,000 in Aggregate Principal Amount of 6-3/4%
Subordinated Debentures due 2009.
(D) "New Indenture" means that certain Indenture to be
dated as of May 6, 2009, between SMP and HSBC Bank USA, N.A.,
as trustee, and any documents, agreements or instruments
executed in connection therewith, each as amended, restated,
supplemented or otherwise modified from time to time.
(E) "New Indenture Maturity Reserve" means a reserve
which (i) during the period October 15, 2010 through November
14, 2010 equals one-sixth of the aggregate amount of the
debentures issued under the New Indenture, (ii) during the
period November 15, 2010 through December 14, 2010 equals
one-third of the aggregate amount of the debentures issued
under the New Indenture, (iii) during the period December 15,
2010 through January 14, 2011 equals one-half of the aggregate
amount of the debentures issued under the New Indenture, (iv)
during the period January 15, 2011 through February 14, 2011
equals two-thirds of the aggregate amount of the debentures
issued under the New Indenture, (v) during the period February
15,
2011 through March 14, 2011 equals five-sixths of the
aggregate amount of the debentures issued under the New
Indenture, and (vi) on and after March 15, 2011 equals one
hundred percent (100%) of the aggregate amount of the
debentures issued under the New Indenture.
(ii) Each of the following defined terms is amended as
follows:
(A) The definition of "Borrowing Availability" is
amended by adding ", the New Indenture Maturity Reserve" in
clause (y) following the words "the Canadian Reserve".
(B) The definition of "Convertible Debt Refinancing" is
amended in its entirety as
follows: