EIGHTH AMENDMENT TO LOAN AGREEMENT
Amendment to Loan Agreement (this Agreement) dated as of January 14, 2010, is entered into among Lithia Motors, Inc., an Oregon corporation (Borrower); the lenders which are from time to time parties to the Loan
Agreement (each a Lender and any two or more Lenders); and U.S. Bank National Association, as agent for the Lenders (in such capacity, Agent).
R E C I T A L S
A. Borrower, the Lenders and Agent
have entered into a Loan Agreement dated as of August 31, 2006, which has been amended by amendments dated as of June 29, 2007, February 13, 2008, March 17, 2008, August 15, 2008, December 12,
2008, March 31, 2009, and October 28, 2009 (collectively, the Loan Agreement).
B. The parties wish
to modify the terms and conditions of the Loan Agreement, as set forth below.
For valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Amendment to Loan Agreement. The
definition of the following term in Section 1.1 of the Loan Agreement is deleted and replaced with the following:
Letter of Credit Commitment means an amount equal to $2,000,000.00.
Precedent. The effectiveness of this Agreement is subject to satisfaction of each of the following conditions:
has received executed originals of this Agreement and such other Loan Documents as Agent requires and Borrower and each Guarantor have provided such information and satisfied such requirements as Agent reasonably requires.
2.2 No Default shall have occurred and be continuing under the Loan Agreement, or will exist after giving effect to the transactions
contemplated hereby and the amendments made by this Agreement.
2.3 All representations and warranties in the Loan Agreement
and in this Agreement are true and correct as of the date of this Agreement.
3. Defined Terms. Capitalized terms not
otherwise defined herein shall have the meanings given to such terms in the Loan Agreement.
4. Reaffirmation; Release.
By signing this Agreement or the attached Acknowledgment:
4.1 Reaffirmation. Borrower and each Guarantor (each, a
Loan Party) affirm that the representations and warranties in each of the existing Loan Documents are and will be true, correct and complete as of the date hereof, and agree that (i) except as amended previously or in connection
herewith, each Loan Document is and shall remain valid and enforceable in accordance with its terms and (ii) such Borrower or Guarantor has no claims, defenses, setoffs, counterclaims or claims for recoupment against Agent, the Lenders, or the
indebtedness and obligations represented by the Notes, Guaranties, Security Documents and other Loan Documents.
Release. Each Loan Party hereby releases, acquits, and forever discharges Agent, each Lender, their parent corporations, affiliates, subsidiaries, employees, successors, agents, assigns, representatives, and attorneys (collectively,
Lenders Agents), and each of them, of and from any and all liability, claims, demands, damages, actions, causes of action, defenses, counterclaims, setoffs, or claims for recoupment of whatsoever nature, whether known or unknown,
whether in contract or tort or otherwise, arising directly or indirectly from, or in any way related to the Loan Agreement, this Amendment, the Guaranties and the other Loan Documents, any other indebtedness or obligations of any Loan Party to Agent
or any one or more of the Lenders or to the relationship between any Loan Party and Agent, any Lender, or Lenders Agents.
5. References. On and after the effective date of this Agreement, all references in
the Loan Agreement and the other Loan Documents to the Loan Agreement shall be deemed to refer to the Loan Agreement as amended hereby.
6. Representations and Warranties. Each Loan Party represents and warrants to Agent and the Lenders as follows:
6.1 Authorization. (a) It has all requisite power and authority to enter into this Agreement and to carry out the transactions contemplated by, and perform its obligations under, the Loan
Agreement as amended by this Agreement (the Amended Agreement), (b) its execution, delivery and performance of this Agreement and the other Loan Documents and all documents to be executed, delivered or performed by it have been duly
authorized by all necessary entity action, do not require the approval of any governmental agency or other Person, do not contravene any law, regulation, rule, order, or restriction binding on it or its articles of incorporation or other
organizational documents, and do not contravene the provisions of or constitute a default under any agreement or instrument to which it is a party or by which it may be bound or affected, and (c) this Agreement has been duly executed and
delivered by each Loan Party and this Agreement and the Amended Agreement are the legally valid and binding obligations of each Loan party, enforceable against such Loan Party in accordance with their respective terms, except as may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors rights generally or by equitable principles relating to enforceability.
6.2 Absence of Default. No Event of Default has occurred and is continuing and no event will result from the consummation of
the transactions contemplated by this Agreement that would constitute a Default or Event of Default.
Borrower shall pay all outside and/or third party costs, fees and expenses (including without limitation, attorney fees) incurred by Agent and each Lender in connection with the preparation, negotiation, execution, and delivery of this Agreement and
any other document required to be furnished herewith.
8. Recitals. The Recitals are hereby incorporated herein.
9. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an
original, and all of said counterparts taken together shall be deemed to constitute but one document.
LITHIA MOTORS, INC.
U.S. BANK NATIONAL ASSOCIATION,
as Agent, Lender and Issuing Lender
/s/ Jeffrey B. DeBoer
/s/ Silvia K. Boulger
Jeffrey B. DeBoer
Silvia K. Boulger
Senior Vice President and Chief Financial Officer
Vice President and Portfolio Manager
ACKNOWLEDGMENT AND CONSENT OF GUARANTORS
Each Guarantor hereby acknowledges, consents, and agrees to all terms and conditions of the foregoing amendment.
Hutchins Eugene Nissan, Inc.
LAD Advertising, Inc.
Lithia Auto Services, Inc.
Lithia BNM, Inc.
Lithia DE, Inc.
Lithia DM, Inc.
Lithia Financial Corporation
Lithia Aircraft, Inc.
Lithia HPI, Inc.
Lithia Klamath, Inc.
L2 Auto, Inc.
Lithia Medford Hon, Inc.
Lithia Motors Support
Lithia MTLM, Inc.
Lithia of Roseburg, Inc.
Lithia Real Estate, Inc.
Lithia Rentals, Inc.
Lithia Rose-FT, Inc.
Lithia SOC, Inc.
Saturn of Southwest Oregon, Inc.
Lithia Chrysler Jeep of Anchorage, Inc.
Lithia Imports of Anchorage, Inc.
Lithia NA, Inc.
Lithia of Anchorage, Inc.
Lithia of Fairbanks, Inc.
Lithia of South Central AK, Inc.
Lithia CIMR, Inc.
Lithia DC, Inc.
Lithia FMF, Inc.
Lithia JEF, Inc.
Lithia MMF, Inc.
Lithia NF, Inc.
Lithia of California, Inc.
Lithia of Eureka, Inc.
Lithia Seaside, Inc.
Lithia Sea P, Inc.
Lithia of Santa Rosa, Inc.
Lithia Centennial Chrysler Plymouth Jeep, Inc.
Lithia Cherry Creek Dodge, Inc.
Lithia Colorado Jeep, Inc.
Lithia Colorado Springs Jeep Chrysler Plymouth, Inc.
Lithia Foothills Chrysler, Inc.
Lithia of Thornton, Inc.
Lithia CCTF, Inc.
Lithia Ford of Boise, Inc.
Lithia of Caldwell, Inc.
Lithia of Pocatello, Inc.
Lithia Poca-Hon, Inc.
Lithia of TF,
Lithia MBDM, Inc.
Des Moines, Inc.
Lithia CDH, Inc.
Lithia HGF, Inc.
Lithia of Billings, Inc.
Lithia of Great Falls, Inc.
Lithia of Helena, Inc.
Lithia of Missoula, Inc.
Lithia CJD of Omaha, Inc.
Lithia CJDSF, Inc.
Lithia SALMIR, Inc.
Lithia ND Acquisition Corp. #1
Lithia ND Acquisition Corp. #3
Lithia ND Acquisition Corp. #4
Lithia Automotive, Inc.
Camp Automotive, Inc.
Lithia DC of Renton, Inc.
Lithia Dodge of Tri-Cities, Inc.
Lithia HyR, Inc.
Lithia of Seattle, Inc.
Lithia of Spokane, Inc.
Lithia of Cedar Rapids #1, Inc.
Lithia of Cedar Rapids #2, Inc.
Lithia of Cedar
Rapids #3, Inc.
Lithia AcDM, Inc.
Lithia HDM, Inc.
Lithia NDM, Inc.
Lithia VAuDM, Inc.
Lithia Bryan Texas, Inc.
Lithia CJDO, Inc.
Lithia CJDSA, Inc.
Lithia CM, Inc.
Lithia CO, Inc.
Lithia CSA, Inc.
Lithia DMID, Inc.
Lithia HMID, Inc.
Lithia NSA, Inc.
Lithia of Abilene, Inc.
Lithia of Corpus Christi, Inc.
Lithia of Midland, Inc.
Lithia TA, Inc.
Lithia TO, Inc.
Lithia Community Development
L2 Auto of Colorado, Inc.
L2 Auto of Texas, Inc.
L2 Auto of Idaho, Inc.
Lynnwood Properties, LLC
L2 Auto of Oregon, LLC
/s/ Jeffrey B. DeBoer
Jeffrey B. DeBoer