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                                                                     Exhibit 4.1

                           CERTIFICATE OF DESIGNATIONS

                                       OF

                      SERIES B AND SERIES C PREFERRED STOCK

                                       OF

                           NATIONAL AUTO CREDIT, INC.

                              ---------------------
                     Pursuant to Section 151 of the General
                    Corporation Law of the State of Delaware
                              ---------------------

         The undersigned DOES HEREBY CERTIFY that the following resolution was
duly adopted by the Board of Directors of National Auto Credit, Inc. (the
"CORPORATION"), a Delaware corporation, at a meeting duly called and held, a
quorum being present:

         RESOLVED, that pursuant to the authority vested in the Board of
Directors of the Corporation in accordance with the provisions of Article FOURTH
of the Corporation's Restated Certificate of Incorporation, two new series of
Preferred Stock of the Corporation are hereby created and designated as the
Series B Preferred Stock and the Series C Preferred Stock.

         The rights, preferences, privileges, and restrictions granted to and
imposed on the Series B Preferred Stock, which series shall consist of 275,000
authorized shares, are as set forth in Articles I and III below.

         The rights, preferences, privileges, and restrictions granted to and
imposed on the Series C Preferred Stock, which series shall consist of 735,000
authorized shares, are as set forth in Articles II and III below.

         I.       THE SERIES B PREFERRED STOCK

         1.  CONVERSION.

         (a) VOLUNTARY CONVERSION. The Holders (as hereinafter defined) of
shares of the Series B Preferred Stock shall have the right to convert such
shares as follows:

                (i) RIGHT TO CONVERT. Each share of Series B Preferred Stock
shall be convertible, at the option of the Holder thereof, at any time after the
date of issuance of such share, at the office of the Corporation or, if there
then be such a registrar and transfer agent, the registrar and transfer agent
for such stock, into ten (10) (as the same may be adjusted pursuant to
SUBSECTION (C) BELOW, the "SERIES B CONVERSION RATE"), shares of the
Corporation's common stock ("COMMON STOCK"), par value $.05 per share, which
shares of Common Stock upon issuance shall be validly issued, fully paid and
nonassessable. As used herein, the "HOLDER" of any share of capital stock or
other security shall mean the registered holder thereof as reflected in the
books and records of the Corporation or, if there be such a registrar and
transfer agent, in the books and record of the registrar and transfer agent for
such share of capital stock or other security.

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                  (ii) MECHANICS OF CONVERSION. Any Holder of shares of Series B
Preferred Stock shall be entitled to convert the same into shares of Common
Stock, only upon (A) the surrender of the certificate or certificates therefor,
duly endorsed, at the office of the Corporation or, if there then be such a
registrar and transfer agent, at the office of the registrar and of any transfer
agent for the Series B Preferred Stock, and (B) the delivery by such Holder of
written notice to the Corporation at its principal corporate office of such
Holder's election to convert the same, which notice shall state therein the name
or names in which the certificate or certificates for shares of Common Stock
issuable upon the conversion of such shares of Series B Preferred are to be
issued. The Corporation shall, as soon as practicable thereafter, issue and
deliver, or cause to be issued and delivered, at such office to such Holder, or
to the specified nominee or nominees of such Holder, a certificate or
certificates for the number of shares of Common Stock to which such Holder shall
be entitled as aforesaid. Such conversion shall be deemed to have been made
immediately prior to the close of business on the date of such surrender of the
shares of Series B Preferred Stock to be converted, and as of the close of
business on such date, (A) the Holder of the shares of Series B Preferred Stock
surrendered for conversion shall cease to have any voting or other rights
attendant to or associated with such shares, excepting only the right to receive
shares of Common Stock upon the conversion thereof as contemplated hereby, and
(B) the Person (as hereinafter defined) or Persons entitled to receive the
shares of Common Stock issuable upon such conversion shall be treated for all
purposes as the record holder or holders of such shares of Common Stock. As used
herein, "PERSON" means any individual, corporation, partnership (general or
limited), limited liability company, joint venture or other business entity.

         (b)  MANDATORY CONVERSION.

                  (i) AUTOMATIC CONVERSION. Upon the occurrence of a Reading
Termination (as hereinafter defined), each and all of the outstanding shares of
Series B Preferred Stock shall automatically convert into shares of Common Stock
at the Series B Conversion Rate. As used herein, a "READING TERMINATION" means
the termination of that certain Stock Purchase And Standstill Agreement, dated
as of November 3, 2000, by and among, on the one hand, Reading Entertainment,
Inc., FA, Inc., Citadel Holding Corporation and Craig Corporation and, on the
other hand, the Corporation.

                  (ii) MECHANICS OF CONVERSION. Promptly following a Reading
Conversion, the Corporation shall furnish or cause to be furnished to each
Holder of outstanding shares of Series B Preferred Stock written notice, which
notice shall state (A) that a Reading Conversion has occurred and that, as a
consequence thereof, all of the outstanding shares of Series B Preferred Stock
have been converted automatically into shares of Common Stock and (B) the Series
B Conversion Rate then in effect and shall request that such Holder surrender
and deliver to the Corporation or, if there then be such a registrar and
transfer agent, the registrar and transfer agent for the Common Stock and Series
B Preferred Stock, the stock certificate or certificates representing all of the
shares of Series B Preferred Stock owned or held by such Holder. Promptly
following the surrender and delivery of such stock certificate or certificates
as so requested, the Corporation shall issue and deliver, or cause to be issued
and delivered, at the Corporation's principal office or the office of such
registrar and transfer agent to such Holder a certificate or certificates for
the number of shares of Common Stock into which the shares of Series B Preferred
Stock so surrendered have been converted. As of the close of business on the
date a Reading Termination occurs, the Holder of any shares of Series B
Preferred Stock shall

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cease to have any voting or other rights attendant to or associated with such
shares, excepting only the right to receive shares of Common Stock upon the
conversion thereof as contemplated hereby, and upon surrender and delivery of
the stock certificate or certificates for his, her or its shares of Series B
Preferred Stock as provided above, such Holder shall be treated for all purposes
as the record holder of the shares of Common Stock issuable upon conversion of
such shares as contemplated above.

         (c)  CONVERSION RATE ADJUSTMENTS OF SERIES B PREFERRED STOCK.

         In the event that the Corporation shall, at any time or from time to
time while the shares of Series B Preferred Stock are outstanding, (i) declare a
dividend or distribution on the Common Stock in shares of Common Stock, (ii)
subdivide the outstanding shares of Common Stock into a greater number of shares
or (iii) combine the outstanding shares of Common Stock into a smaller number of
shares, in each case, whether by reclassification of shares, recapitalization of
the Corporation (including a recapitalization effected by a merger or
consolidation) or otherwise, the Series B Conversion Rate in effect shall be
proportionately adjusted so that the Holder of any share of Series B Preferred
Stock converted after the record date for (or, if there be no record date for
such event, the effective date of) such events shall be entitled to receive,
upon conversion of his/her/its shares of Preferred Stock, the number of shares
of Common Stock that such Holder would have been entitled to receive had such
Series B Preferred Stock been converted immediately prior to such record date
(or, if there be no record, such effective date). The Series B Conversion Rate
shall be adjusted, cumulatively, for each and every event set forth above in
this paragraph occurring prior to the effective date of the conversion.

         In case of any consolidation or merger of the Corporation with another
Person, each share of Series B Preferred Stock shall thereafter be convertible
only into the number of shares of stock or other securities or property,
including cash, to which a Holder of the number of shares of Common Stock
deliverable upon conversion of such share of the Series B Preferred Stock would
have been entitled received upon such consolidation or merger had such share of
Series B Preferred Stock been converted immediately prior to the record date for
(or, if there be no record date for such event, the effective date of) such
consolidation or merger; and, in any such case, appropriate adjustments shall be
made in the application of the provisions herein set forth with respect to the
rights and interests thereafter of the Holders of the Series B Preferred Stock
to the end that the provisions set forth herein (including provisions with
respect to changes in and other adjustments of the Series B Conversion Rate)
shall thereafter be applicable, as nearly as may be reasonable, in relation to
any shares of stock or other securities thereafter deliverable upon the
conversion of shares of Series B Preferred Stock.

         (d) NOTICES OF ADJUSTMENT. Whenever one or more adjustments to the
Series B Conversion Rate are required by the provisions of this subsection (d),
the Corporation shall promptly place on file with the registrar and transfer
agent, if any, for the Common Stock and the Series B Preferred Stock, and with
the Secretary of the Corporation, a statement signed by two officers of the
Corporation stating the adjusted Series B Conversion Rate. Such statement shall
set forth in reasonable detail such facts as shall be necessary to show the
reason and the manner of computing each such adjustment. Promptly after each
adjustment to the Series B Conversion Rate, the Corporation shall mail a notice
thereof to each Holder of shares of Series B Preferred Stock containing a brief
description of the transaction causing such adjustment and the resulting

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Series B Conversion Rate. The Corporation shall, upon the written request at any
time of any Holder of shares of Series B Preferred Stock, furnish or cause to be
furnished to such Holder a certificate setting forth (A) any adjustment and
readjustment of the Series B Conversion Rate pursuant to this subsection (c)
above, (B) the Series B Conversion Rate at the time in effect, and (C) the
number of shares of Common Stock and the amount, if any, of other property that
at the time would be received upon the conversion of a share of Series B
Preferred Stock.

         (e) NO IMPAIRMENT. Absent prior written consent of the Holders of a
majority of the outstanding shares of Series B Preferred Stock, the Corporation
shall not enter into any standstill or similar agreement, or any modification or
amendment thereof, that would prohibit or restrict in any material respect
(including by requiring stockholder approval) the ability of the corporation to
issue shares of Common Stock upon conversion of the Series B Preferred Stock.

         (f) NO FRACTIONAL SHARES. No fractional shares of Common Stock shall be
issued upon the conversion of any share or shares of the Series B Preferred
Stock, and the number of shares of Common Stock to be issued shall be rounded up
or down to the nearest whole share (with one-half being rounded upward). Whether
or not fractional shares are issuable upon such conversion shall be determined
on the basis of the total number of shares of Series B Preferred Stock the
Holder thereof is at the time converting into shares of Common Stock and the
number of shares of Common Stock issuable upon such aggregate conversion.

         (f) RESERVATION OF STOCK ISSUABLE UPON CONVERSION. The Corporation
shall at all times reserve and keep available out of its authorized but unissued
shares of Common Stock, solely for the purpose of effecting the conversion of
the shares of the Series B Preferred Stock, such number of shares of Common
Stock as shall from time to time be sufficient to effect the conversion of all
outstanding shares of Series B Preferred Stock; and if at any time the number of
authorized but unissued shares of Common Stock shall not be sufficient to effect
the conversion of all then outstanding shares of Series B Preferred Stock, in
addition to such other remedies as shall be available to the Holder of such
shares of Series B Preferred Stock, the Corporation will take such corporate
action as may, in the opinion of its counsel, be necessary to increase its
authorized but unissued shares of Common Stock to such number of shares as shall
be sufficient for such purposes, including, without limitation, engaging in best
efforts to obtain the requisite shareholder approval of any necessary amendment
to the Certificate of Incorporation of the Corporation.

         2.  VOTING RIGHTS.

                  (a) GENERAL VOTING RIGHTS. The Holder of each share of Series
B Preferred Stock shall have the right to one vote for each share of Common
Stock into which such share of Series B Preferred Stock could then be converted,
and with respect to such vote, such Holder shall have full voting rights and
powers equal to the voting rights and powers of the holders of Common Stock, and
shall be entitled, notwithstanding any provision hereof, to notice of any
stockholders' meeting in accordance with the bylaws of the Corporation, and
shall be entitled to vote, together with holders of Common Stock, with respect
to any question upon which holders of Common Stock have the right to vote;
provided, however, that, notwithstanding anything contained herein to the
contrary, for so long as the Holders of shares of Series B Preferred Stock,
voting as a class, shall be entitled hereunder to elect one or more members to
the Corporation's Board of Directors

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(the "BOARD"), the holders of shares of Series B Preferred Stock shall not
otherwise be able to exercise any vote with respect to the election of any
member to the Board.. Fractional votes shall not, however, be permitted and any
fractional voting rights available on an as-converted basis (after aggregating
all shares into which shares of Series B Preferred Stock held by each Holder
could be converted) shall be rounded to the nearest whole number (with one-half
being rounded upward).

                  (b) CLASS VOTING FOR THE ELECTION OF DIRECTORS. For so long as
at least two hundred and five thousand (205,000 shares) of Series B Preferred
Stock are issued and outstanding, the Holders of shares of Series B Preferred
Stock, voting separately as a class, shall be entitled to nominate and elect the
lesser of (i) two (2) members to the Board or (ii) a number of directors that
would represent one-sixth (1/6) of the entire membership of the Board; and for
so long as at least one hundred and ten thousand (110,000) shares of Series B
Preferred Stock are issued and outstanding, the Holders of shares of Series B
Preferred Stock, voting separately as a class, shall be entitled to nominate and
elect one (1) member to the Board. To the extent the Holders of shares of Series
B Preferred Stock shall be entitled to nominate or elect two (2) members to the
Board, such right shall be exercisable only with respect to members of the Board
who have different terms as members of the Board unless all members of the Board
have the same term. For foregoing right to nominate or elect members to the
Board shall (except with respect to certain vacancies as provided below) only
apply with respect to an election at an annual meeting of shareholders of the
Corporation and shall first be available (subject to the foregoing terms and
conditions) with respect to the first annual meeting of shareholders of the
Corporation next following the initial issuance of shares of Series B Preferred.
At least twenty (20) days prior to the distribution by the Corporation to its
shareholders of a proxy statement relating to any annual meeting at which the
Holders of shares of Series B Preferred Stock shall, as provided above, be
entitled to nominate and elect a member to the Board, the Corporation shall give
written notice (a "PROPOSED ANNUAL MEETING NOTICE") of such proposed annual
meeting to all Holders of the then outstanding shares of Series B Preferred
Stock and shall therein solicit from such Holders a nominee to be elected a
member of the Board at such meeting. Following receipt of a Proposed Annual
Meeting Notice from the Corporation, any Holder shall be entitled to give the
Corporation written notice (a "NOMINEE NOTICE") specifying such individual (any
such individual, a "PROPOSED CANDIDATE") as such Holder may wish to have
nominated for election to the Board at the next annual meeting of shareholders,
which notice shall be signed by such Holder, and upon the giving of any Nominee
Notice, the Holder giving the same shall be deemed to have voted all of
his/her/its shares of Series B Preferred Stock in favor of the nomination of the
Proposed Candidate named in such Notice for election to the Board. The
Corporation shall include in the proxy statement for such annual meeting, as a
candidate for election to the Board at such meeting, the Proposed Candidate who
has received the most votes from Holders as reflected in Nominee Notices
received by the Corporation prior to the close of business on the fifteenth
(15th) day following the date on which the Corporation gave the Proposed Annual
Meeting Notice (or prior to the close of business on the business day next
preceding such fifteenth day, if such fifteenth day is not a business day);
provided, however, that the Corporation shall not be required to include such
Proposed Candidate in such proxy statement as a nominee for election to the
Board unless, on or before the close of business on such fifteenth day (or prior
to the close of business on the business day next preceding such fifteenth day,
if such fifteenth day is not a business day), in writing signed by such Proposed
Candidate, all such information with respect to such Proposed Candidate as may
be required to

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be set forth in such proxy statement under applicable law and such other
information as the Corporation may reasonably request. The Holders of shares of
Series B Preferred Stock shall not be entitled to take any action at any meeting
at which Holders of shares of Series B Preferred Stock are entitled to act
separately as a class unless a quorum thereof is present in person or
represented by proxy, where a quorum shall consist of the Holders of a majority
of the then issued and outstanding shares of Series B Preferred Stock, and with
respect to any vote to be taken by the Holders of shares of Series B Preferred
Stock voting separately as a class, each Holder shall be entitled to one (1)
vote for each share of Series B Preferred Stock owned of record by such Holder.

         In the case of any vacancy (other than a vacancy caused by removal) in
the office of a director elected by the Holders of Series B Preferred Stock as
contemplated by the foregoing provisions of this Section 2, the remaining
director elected by the Holders of Series B Preferred Stock as contemplated by
the foregoing provisions of this Section 2 (if there should be such a director)
shall be entitled to elect a successor to hold office for the unexpired term of
the director whose place shall be vacant. Any director who shall have been
elected by the Holders of shares of Series B Preferred Stock, or by any director
so elected as provided in the immediately preceding sentence, may be removed
during the aforesaid term of office, either with or without cause, by, and
(except as provided in the last sentence of this subsection (c)) only by, the
affirmative vote of the Holders of shares of Series B Preferred Stock, given
either at a special meeting of such Holders duly called for that purpose or
pursuant to a written consent of such Holders, and any vacancy thereby created
may be filled by the Holders of shares of Series B Preferred Stock represented
at the meeting or pursuant to unanimous written consent. Notwithstanding
anything contained in herein to the contrary, any director elected by the
Holders of shares of Series B Preferred Stock may be removed by the affirmative
vote of at least two-thirds (2/3) of the entire Board, exclusive of such
director, if such director has, during the period such director was serving on
the Board, (i) been guilty of fraud, embezzlement or defalcation against the
Board, the Corporation or any of its subsidiaries or against any customer,
client, vendor or supplier of the Corporation or any of its subsidiaries, (ii)
been employed as an officer of the Corporation or any of its subsidiaries and
such employment has been terminated for cause or (iii) has been convicted of any
criminal act for which such director can be incarcerated for one year or more
(regardless of whether such director is in fact incarcerated).

         II.      THE SERIES C CONVERTIBLE PARTICIPATING PREFERRED STOCK

         1. REDEMPTION BY HOLDER.

         (a) TIMING OF REDEMPTION RIGHT. At any time after the earlier of
September 30, 2003 or the occurrence of a Redemption Event (as hereinafter
defined), but in any event, no earlier than January 1, 2003, a Holder of shares
of Series C Preferred Stock shall be entitled to give a Redemption Notice (as
hereinafter defined) with respect to such of those shares as such Holder desires
to have the Corporation redeem. Following receipt of an appropriate Redemption
Notice, the Corporation (as more fully set forth below) shall, to the extent it
may lawfully do so, redeem the shares of Series C Preferred Stock specified in
such Notice by paying in cash therefor in an amount (the "REDEMPTION PAYMENT
AMOUNT") equal to the product of (A) the number of shares of Series C Preferred
Stock with respect to which such Redemption Notice has been given times (B) the
greater of (x) $15.00 (as adjusted for any stock splits, stock dividends,
recapitalizations

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or the like) plus all declared but unpaid dividends on such shares or (y) ten
(10) times the Fair Market Value (as hereinafter defined) of a share of Common
Stock as of the date the Redemption Notice is received by the Corporation;
Notwithstanding anything contained herein to the contrary, no Redemption Notice
may be given, and if given shall not be effective, with respect to any shares of
Series C Preferred Stock unless such shares shall no longer be subject to
forfeiture pursuant to the Merger Agreement.

         (b) TIMING OF REDEMPTION PAYMENTS. Within thirty (30) days following
receipt of any valid Redemption Notice, the Corporation shall pay to the Holder
giving such Notice an amount equal to the lesser of (i) the full Redemption
Payment Amount due to such Holder or (ii) the product of (A) the number of
shares of Series C Preferred Stock being redeemed times (B) thirty dollars ($30)
(as adjusted for any stock splits, stock dividends, recapitalizations or the
like) (the amount of such product being hereinafter referred to as the "INITIAL
CAP AMOUNT"). In the event the Redemption Payment Amount payable to any Holder
of Series C Preferred Stock exceeds the Initial Cap amount payable to such
Holder, the unpaid balance of such amount (such unpaid balance due to any such
Holder, together with interest thereon at the rate of eight percent (8%) per
annum from the date such Initial Cap Amount was due hereunder until such amount
is paid, being hereinafter referred to as such Holder's "REDEMPTION BALANCE
AMOUNT") shall be paid to such Holder in accordance with the following
provisions of this subsection (b). Within ninety (90) days following the end of
each fiscal year, the Corporation shall, to the extent it may legally do so, pay
and apply to all Holders who, as of the end so such fiscal year, had a
Redemption Balance Amount due to them an amount equal to the lesser of (A) the
aggregate Redemption Balance Amounts owned to all such Holders as of the end of
such fiscal year and (B) the Free Cash Flow of the Corporation for such fiscal
year. In the event the Free Cash Flow of the Corporation for any fiscal year (or
the portion thereof that the Corporation is legally permitted to pay) shall not
be sufficient to pay the full Redemption Balance Amounts due to all such Holders
as of the end of such fiscal year, such Free Cash Flow (or the portion thereof
that the Corporation is legally permitted to pay) shall be paid to and among
such Holders in proportion to the respective Redemption Balance Amounts owed to
them as of the end of such fiscal year. The Corporation may (but is shall not be
obligated), to the extent it may legally do so, pay any Redemption Balance
Amount sooner than required above, provided that it shall not pay any portion of
an Redemption Balance Amount due to any Holder of shares of Series C Preferred
Stock unless it concurrently pays an equal portion (determined on the basis of
the amount of the respective Redemption Balance Amounts as of the end of the
calendar month next preceding the date of payment) of all other outstanding
Redemption Balance Amounts.

                  (c) TERMINATION OF RIGHTS. Upon surrender of any shares of
Series C Preferred Stock to for redemption as contemplated above, the Holder of
such shares shall cease to have any rights attendant to or associated with such
shares, excepting only the right to receive payment for such shares as provided
above.

                  (d) DEFINITIONS. As used herein, the following terms shall
have the following respective meanings:

                  (i) "FAIR MARKET PRICE" of a share of Common Stock as of any
date means the average of the daily Trading Prices for a share of Common Stock
for the twenty (20) consecutive trading days commencing 20 days before
immediately preceding such date, where the Trading

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Price for a share of Common Stock on any trading day shall be (i) the last sale
price on such day on the principal stock exchange or the Nasdaq National Market
on which shares of Common Stock are then listed or admitted to trading, (ii) if
no sale of Common Stock takes place on such day on any such exchange or market,
the average of the last reported closing bid and asked prices on such day as
officially quoted on any such exchange or market, (iii) if the Common Stock are
not then listed or admitted to trading on any stock exchange or such market, the
average of the last reported closing bid and asked prices on such day in the
over-the-counter market, as furnished by Nasdaq or the National Quotation
Bureau, Inc. (or, if neither Nasdaq or the National Quotation Bureau, Inc. is at
the time is engaged in business of reporting such prices, then such prices as
furnished by any similar firm then engaged in such business, or if there is no
such firm, as furnished by any member of the National Association of Securities
Dealers ("NASD") selected in good faith by the Board).

                  (ii) "FREE CASH FLOW" of the Corporation for any fiscal year
means (a) the after-tax income of the Corporation (determined on a consolidated
basis) for such fiscal year plus the amount of depreciation and amortization
that were deducted for the purposes of determining the taxable income of the
Corporation (determined on a consolidated basis) for such fiscal year LESS (b)
the amount of any debt service required to be paid by the Corporation
(determined on a consolidated basis) during the next following fiscal year.

                  (iii) "MERGER AGREEMENT" means that certain Merger Agreement
And Plan of Reorganization, dated as of December 15, 2000, by and among the
Corporation, ZLT Acquisition Corp., ZoomLot Corporation and the Shareholders of
ZoomLot Corporation, as the same existed on December 15, 2000.

                  (iv) "REDEMPTION EVENT" means the occurrence of any Valuation
Event or the achievement of any Objective that would render any of the shares of
Series C Preferred Stock no longer subject to forfeiture under the terms of the
Merger Agreement.

                  (v) "REDEMPTION NOTICE" means a written notice that is timely
given by the Holder of shares of Series C Preferred Stock to the Corporation at
its principal offices, that is signed by such Holder, that specifies the shares
of Series C Preferred Stock that such Holder wishes to have redeemed and that is
accompanied by the stock certificates that represent the shares of Series C
Preferred Stock that such Holder desires to have redeemed and that are being
surrendered to the Corporation for redemption and cancellation.

                  (vi) "VALUATION EVENT" means any of the following: (i) the
execution by the Surviving Corporation (as defined in the Merger Agreement) or
one of its subsidiaries, during the Forfeiture Period (as defined in the Merger
Agreement), of an agreement that provides for a private cash equity investment
in the Surviving Corporation or such subsidiary of not less than $10 million and
pursuant to which the pre-money valuation of the Surviving Corporation and its
subsidiaries is $30 million or more, provided that the transaction contemplated
by such agreement closes prior to or within 120 days following the Expiration
Date (as defined in the Merger Agreement); (ii) the execution, during the
Forfeiture Period, of an agreement for the sale by the Corporation of all or
substantially all of the equity or assets of the Surviving Corporation in a
transaction in which the Surviving Corporation and/or its subsidiaries are
valued at $30 million or more, provided that the transaction contemplated by
such agreement closes prior to or

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within 120 days following the Expiration Date; (iii) the execution, during the
Forfeiture Period, of an agreement or plan that provides for (A) a firm
commitment underwritten initial public offering by the Surviving Corporation,
(B) a reverse merger pursuant to which the Surviving Corporation or any of its
subsidiaries is to become a reporting company under the Securities Exchange Act
of 1934 (the "EXCHANGE ACT"), (C) a spin off in whole or in part of the capital
stock of the Surviving Corporation or any of its subsidiaries to the
shareholders of the Corporation, or (D) any event similar to the events in (A),
(B) and (C), in each such case in which the Surviving Corporation or any of its
subsidiaries is valued at $30 million or more pre-money and, in the case of an
initial public offering, the proceeds are not less than $10 million, provided in
each of the foregoing cases that the transaction contemplated by such agreement
or plan closes prior to or within 120 days following the Expiration Date; (iv)
the execution, during the Forfeiture Period, of an agreement to provide a
private cash equity investment in the Corporation or any of its subsidiaries of
not less than $10 million and pursuant to which the pre-money valuation of the
Surviving Corporation and its subsidiaries is $30 million, wherein $10 million
or more of the proceeds of such investment is intended for the Surviving
Corporation or any of the Surviving Corporation's subsidiaries, provided that
the transaction contemplated by such agreement closes prior to or within 120
days following the Expiration Date; (v) the termination by the Surviving
Corporation of the employment of Ray Fidel, Mark Sauder and Eric Splaver, other
than for "cause" (as such term is defined or understood under New York law) or
on account of their disability, if the Surviving Corporation is, at the time of
each of such terminations, in compliance in all material respects with the
performance and development criteria set forth in EXHIBIT E to the Merger
Agreement; or (vi) the Corporation undergoes a Change in Control, where "CHANGE
OF CONTROL" means any of the following: (A) any merger of the Corporation in
which the Corporation is not the continuing or surviving entity or pursuant to
which capital stock of the Corporation would be converted into cash, securities
or other property, other than a merger of the Corporation in which the holders
of the Corporation's capital stock immediately prior to such merger have the
same proportionate ownership of beneficial interest of common stock or other
voting securities of the surviving entity immediately after such merger or (B)
the failure of the individuals who either constituted the Board at the
conclusion of the first meeting of shareholders of the Corporation following the
Closing (as defined in the Merger Agreement), were elected by the Holders of
shares of Series B Preferred Stock or by a director who was elected by the
Holders of shares of Series B Preferred Stock or were elected or approved by any
director who was elected by the Holders of shares of Series B Preferred Stock or
by a director who was elected by the Holders of shares of Series B Preferred
Stock to constitute a majority of the Board, excluding, however, the election,
or the nomination for election by the Corporation's shareholders, of any new
director approved by a vote of at least two-thirds of the directors then still
in office who were directors at the conclusion of the first meeting of
shareholders of the Corporation following the Closing or by vote of the Holders
of shares of Series B Preferred Stock or by a director who was elected by vote
of the Holders of shares of Series B Preferred Stock; or (C) any person (other
than any Shareholder (as defined in the Merger Agreement) or affiliate of any
Shareholder) acquiring more than 50% of the Corporation's issued and outstanding
capital stock unless such acquisition, or the transaction pursuant to which such
acquisition was made, was approved or consented to by the Board. For each
Valuation Event described in clause (i) through (iv) above, the minimum
investment and pre-money valuation criteria shall each be increased
dollar-for-dollar for any amount in excess of $6.5 million (or, if less, such
lesser amount of funding as may be required to be provided to the

                                       9
<PAGE>   10

Surviving Corporation pursuant to Section 1.11(b) of the Merger Agreement) in
funding provided to the Surviving Corporation by the Corporation.

         2. REDEMPTION BY THE CORPORATION.

         (a) TIMING OF REDEMPTION RIGHT. At any time after January 1, 2003, the
Corporation shall have the right to redeem all or any portion of the outstanding
of shares of Series C Preferred Stock. The Corporation may exercise such right
by giving written notice (a "NOTICE OF REDEMPTIOn") to all Holders of shares of
Series C Preferred Stock specifying the date such notice is being given to such
Holders, the total number of shares of Series C Preferred Stock the Corporation
has elected to redeem and the portion (the "REDEMPTION PORTION") of all then
outstanding shares of Series C Preferred Stock that such number represents.
Within thirty (30) days following receipt of any Notice of Redemption, each
Holder of shares of Series C Preferred Stock shall deliver and surrender for
redemption to the Corporation at its principal business office a certificate or
certificates representing the redemption Portion of all shares of Series C
Preferred Stock held of record by such Holder as of the date the Notice of
Redemption was given (which certificate shall represent, FIRST, to the extent
such Holder has any shares of Series C Preferred Stock that are Nonforfeitable
Shares (as defined in the Merger Agreement), such shares of Series C Preferred
Stock, second, to the extent such Holder has any shares of Series C Preferred
Stock that, although Forfeitable Shares (as defined in the Merger Agreement),
are no longer subject to forfeiture under the Merger Agreement, such shares, and
third, only to the extent such Holder does not have any shares of Series C
Preferred Stock that are Nonforfeitable Shares or that, although Forfeitable
Shares, are no longer subject to forfeiture under the Merger Agreement, other
shares of Series C Preferred Stock.

         (b) PAYMENT FOR SHARES CALLED FOR REDEMPTION. Within thirty (30) days
following receipt of certificates representing shares of Series C Preferred
Stock called for redemption as contemplated above, the Corporation shall pay to
the Holder of such shares an amount equal to the product of (A) the number of
shares of Series C Preferred Stock being redeemed times (B) the greater of (x)
$15.00 (as adjusted for any stock splits, stock dividends, recapitalizations or
the like) plus all declared but unpaid dividends on such shares or (y) ten (10)
times the Fair Market Value of a share of Common Stock as of the date the Notice
of Redemption was given to Holder of shares of Series C Preferred Stock.

                   (c) TERMINATION OF RIGHTS. The Holder of such shares of
Series C Preferred Stock called for redemption as contemplated above shall cease
to have any rights attendant to or associated with such shares, excepting only
the right to receive payment for such shares as provided above.

         3. Voting Rights. No voting rights shall be attendant to or associated
with the shares of Series C Preferred Stock.

         III.    DESIGNATIONS COMMON TO BOTH SERIES B AND C PREFERRED STOCK

         1. DIVIDEND PROVISIONS. No dividends shall be made with respect to any
share of Common Stock unless a dividend in an amount equal to ten (10) times the
amount of the

                                       10
<PAGE>   11

dividend payable with respect to a share of Common Stock is paid with respect to
each share of the Series B and C Preferred Stock.

         2. LIQUIDATION DISTRIBUTIONS. In the event of any liquidation,
dissolution or winding up of the Corporation, either voluntary or involuntary,
the Holders of shares of Series B and C Preferred Stock shall be entitled to
receive an amount per share equal to ten (10) times the amount payable per share
of Common Stock upon such liquidation, dissolution or winding up. .

         3. NOTICES OF RECORD DATE. In the event of any taking by the
Corporation of a record of the Holders of any class of securities for the
purpose of determining the Holders thereof who are entitled to receive any
dividend (other than a cash dividend) or other distribution, any right to
subscribe for, purchase or otherwise acquire any shares of stock of any class or
any other securities or property, or to receive any other right, the Corporation
shall mail to each Holder of shares of Series B or C Preferred Stock, at least
ten (10) days prior to the date specified therein, a notice specifying the date
on which any such record is to be taken for the purpose of such dividend,
distribution or right, and the amount and character of such dividend,
distribution or right.

         4. NOTICES GENERALLY; STATUS OF HOLDER. Any notice required or
contemplated herein to be given to any Holders of shares of Series B or C
Preferred Stock shall be deemed given if deposited in the United States mail,
postage prepaid, and addressed to such Holder at his/her/its address appearing
on the books and records of the Corporation or of the registrar and transfer
agent for shares of the Series B and C Preferred Stock. Any notice required or
contemplated herein to be given to the Corporation shall be deemed given if
deposited in the United States mail, postage prepaid, and addressed to the
Corporation at the address of its then principal office and to the attention of
the President of the Corporation. For all purposes hereof, the Corporation shall
be entitled to treat the Holder of any shares of Series B or C Preferred Stock
as the true and rightful owner of such shares, regardless of any notice or claim
to the contrary.

         5. STATUS OF REDEEMED OR CONVERTED STOCK. In the event any shares of
Series B or C Preferred Stock shall be converted or redeemed as contemplated
above, such shares shall be cancelled, but the same shall revert to authorized
but unissued shares of preferred stock of the corporation, without designation,
until such time as, by appropriate resolution of the Board, such shares are
designated as a difference series of preferred, following which such shares may
again be issued with such rights, preferences, privileges, and restrictions as
may be specified in such resolutions.

         6. AMENDMENT AND WAIVER. The waiver (including any prospective waiver)
of any provision hereof or of any breach of any obligation hereunder shall be
effective, and any amendment, modification or other change of any provision
hereof shall be effective, (i) as against the Corporation (and against its
successors and assigns), if in writing signed by the Corporation and approved by
a duly adopted resolution of the Board, (ii) as against any Holder of any shares
of Series B or C Preferred Stock (and against such Holder's heirs,
administrators, executors, legal representatives, successors and assigns), if in
writing signed by such Holder, (iii) as against all Holders of any shares of
Series B Preferred Stock (and against all such Holders' heirs, administrators,
executors, legal representatives, successors and assigns), if in writing signed
by the Shareholders' Representative (as defined in the Merger Agreement) or by
or more

                                       11
<PAGE>   12

Holders of shares of Series B Preferred Stock who, at the time such writing is
signed, individually or in the aggregate own of record a majority of the issued
and outstanding shares of Series B Preferred Stock, (iv) as against all Holders
of any shares of Series C Preferred Stock (and against all such Holders' heirs,
administrators, executors, legal representatives, successors and assigns), if in
writing signed by the Shareholders' Representative or by one or more Holders of
shares of Series C Preferred Stock who, at the time such writing is signed,
individually or in the aggregate own of record a majority of the issued and
outstanding shares of Series C Preferred Stock, and (v) as against all Holders
of any shares of Series B or C Preferred Stock (and against all such Holders'
heirs, administrators, executors, legal representatives, successors and
assigns), if in writing signed by the Shareholders' Representative or by one or
more Holders of shares of Series B and/or C Preferred Stock who, at the time
such writing is signed, individually or in the aggregate own of record a
majority of the issued and outstanding shares of Series B and C Preferred Stock,
taken together. Without limiting the generality of the foregoing, any and all
provisions of this Certificate of Designations may be waived or amended,
modified or otherwise changed, but no such waiver, amendment, modification or
other change shall be binding on the Corporation unless the same has been
approved by a duly approved resolution of the Board.

         7. RESTRICTIONS ON TRANSFER. Notwithstanding anything contained herein
to the contrary, nothing contained herein shall obligate the Corporation to
issue any securities to any nominee or assignee of any Holder of shares of
Series B or C Preferred Stock if such issuance would violate any federal or
state securities laws or any other laws or would be violative of any contract,
court order or other restraint binding upon such Holder or is such securities
are subject to any stop transfer order or instructions.

         IN WITNESS WHEREOF, the Corporation has caused this Certificate of
Designations to be signed in its name and on its behalf this ______ day of
December, 2000, by a duly authorized officer of the Corporation.

                                          NATIONAL AUTO CREDIT, INC.

                                          By:___________________________________
                                              Name: James J.  McNamara
                                              Title:  Chief Executive Officer

                                       12<PAGE>   1
                                                                     EXHIBIT 4.2

                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

      THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made as of
December 15, 2000, by and among NATIONAL AUTO CREDIT, INC. ("NAC"), a Delaware
corporation, and (each of the following, a "SHAREHOLDER," and all of the
following together, collectively, the "SHAREHOLDERS") Ernest C. Garcia, II,
Verde Reinsurance Company, Ltd., a Nevis Island corporation, Ernie Garcia III
2000 Trust, Brian Garcia 2000 Trust, Ray Fidel, Steven Johnson, Mark Sauder,
Eric Splaver, Colin Bachinsky, Chris Rompalo, Donna Clawson, Mary Reiner, and
Kathy Chacon.

                              W I T N E S S E T H :

      WHEREAS, NAC, ZLT Acquisition Corp. ("ZLT"), a Delaware corporation wholly
owned by NAC, ZoomLot Corporation ("ZOOMLOT"), a Delaware corporation, and the
Shareholders have entered into a Merger Agreement And Plan Of Reorganization,
dated as of even date herewith (the "MERGER AGREEMENT");

      WHEREAS, pursuant to the Merger Agreement, upon the consummation of the
merger transactions contemplated by the Merger Agreement, the Shareholders are
to acquire certain shares of NAC's common stock ("COMMON STOCK"), par value $.05
per share, and certain shares NAC's Series B preferred stock and Series C
preferred stock (respectively, "SERIES B PREFERRED STOCK" and "SERIES C
PREFERRED STOCK" and, collectively, "Preferred Stock"), each par value $__ per
share, (such shares of Common Stock and such shares of Preferred Stock,
collectively, the "NAC MERGER SHARES") in exchange for their shares of the
common stock of ZoomLot, and those shares of Series C Preferred Stock (the
"Forfeitable Shares") are subject to forfeiture depending upon the achievement
of certain financial objectives by the surviving corporation in the Merger;

      WHEREAS, each of the Shareholders has entered into a Lockup, Standstill
and Voting Agreement (the "STANDSTILL AGREEMENT") with NAC, dated as of even
date herewith, for the benefit of NAC; and

      WHEREAS, as a condition to the closing of the Merger Agreement, NAC and
the Shareholders have agreed to enter into this Agreement;

      NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
and agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1.    DEFINITIONS

      1.1 "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended;

<PAGE>   2

      1.2 "HOLDER" shall mean the registered holder of NAC Merger Shares or any
shares of Common Stock that have been issued in lieu of any cash payment due
upon the redemption of any shares of Preferred Stock. Notwithstanding anything
contained herein to the contrary, a "HOLDER" shall not include any person or
entity who or that, as a donee, assignee or transferee or otherwise, has
acquired any NAC Merger Shares or any shares of Common Stock that have been
issued in lieu of any cash payment due upon the redemption any shares of
Preferred Stock if such person or entity has acquired such NAC Merger Shares or
shares of Common Stock in violation of the Standstill Agreement or in violation
of any other contract or other agreement binding upon any direct or indirect
donor, assignor or other transferee of such NAC Merger Shares or shares of
Common Stock.

      1.3 "REGISTRATION EXPENSES" shall mean all expenses incurred by NAC in
complying with SECTION 2.1 OR 2.2 hereof, including, without limitation, all
registration and filing fees, printing expenses, fees and disbursements of
counsel for NAC, fees and expenses of independent public accountants of NAC,
blue sky fees and expenses and the expense of any special audits incident to or
required by any such registration (but excluding the compensation of regular
employees of NAC, which shall be paid in any event by NAC).

      1.4 "REGISTRABLE SECURITIES" means, collectively, (a) the shares of Common
Stock issued to the Shareholders pursuant to Section 1.5 of the Merger
Agreement, (b) the shares of Common Stock issuable or issued in lieu of any cash
payment due upon the redemption of any shares of Preferred Stock and (c) any
additional securities issued to the Holders prior to the effective date of the
registration statement referred to below with respect to the foregoing upon or
on account of any stock split, stock dividend, recapitalization, dilution
adjustment or similar event.

      1.5 "SECURITIES ACT" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder by the SEC.

      1.6 "SELLING EXPENSES" shall mean all underwriting discounts and selling
commissions applicable to the sale or resale of any of the Registrable
Securities.

      1.7 "SEC" or "COMMISSION" means the Securities and Exchange Commission.

      1.8 All other capitalized terms used herein and defined in the Merger
Agreement are used herein with the respective meanings ascribed to them in the
Merger Agreement, unless the context herein otherwise requires.

2.    REGISTRATION RIGHTS

      2.1   REGISTRATION STATEMENT.

                                       2
<PAGE>   3

      (a) Following the Closing, NAC shall prepare and file with the SEC one or
more registration statements to register for resale by the Holders of the
Registrable Securities in accordance with the following:

          (i) Within 120 days following the Closing, NAC shall file a
          registration statement (on such form as shall, in the opinion of
          counsel to NAC, be appropriate for such filing) covering the
          Registrable Securities that are neither Forfeitable Shares nor
          issuable in lieu of any cash payment due upon the redemption of any
          Forfeitable Shares; provided, however, that, if the same is
          permissible under the Securities Act, such registration statement
          shall cover all of the Registrable Securities.

          (ii) Within 90 days following the date that some or all of the
          Forfeitable Shares become non-forfeitable in accordance with the
          Merger Agreement, NAC shall file a registration statement (on such
          form as shall, in the opinion of counsel to NAC, be appropriate for
          such filing) covering those of the Registrable Securities that are
          issuable in lieu of any cash payment due upon the redemption of those
          Forfeitable Shares that have become non-forfeitable; provided,
          however, that NAC shall not be obligated to file a registration
          statement with respect to any of Registrable Securities that have been
          covered by the registration statement referred to in clause (i) above.

      (b) After filing, NAC shall diligently use commercially reasonable efforts
to cause the respective registration statement (and/or file a new registration
statement) to become and remain effective until the earlier of (i) the date as
of which all of the Registrable Securities covered thereby have been resold by
the Holders holding the same or (ii) until the Holders are free to resell all of
the Registrable Securities covered thereunder pursuant to Rule 144(k).

      2.2   PIGGY-BACK REGISTRATION RIGHTS.

      (a) If following the Closing NAC engages an underwriter to undertake a
firm commitment underwritten public offering of any capital stock of NAC, then,
at least twenty (20) days prior to the date of the filing by NAC of the
registration statement with respect to such offering, NAC shall give written
notice of such proposed public offering to each of the Holders. In the event any
such Holder shall desire to sell or resell any of its/his/her Registrable
Securities (exclusive of any portion thereof that are issuable in lieu of any
cash payment due upon the redemption of any Forfeitable Shares that have not
become non-forfeitable pursuant to the terms of the Merger Agreement) as part of
or in conjunction with such public offering, such Holder shall, within ten (10)
days of its/his/her receipt of such notice from NAC, give written notice of such
desire to NAC, which notice shall specify (a) the number of Registrable
Securities such Holder desires to sell or resell as part of or in conjunction
with such public offering, (b) the respective portions of such Registrable
Securities that are comprised of (i) shares of Common Stock that have been
issued pursuant to Section 1.5 of the Merger Agreement, (ii) shares of Common
Stock that have been issued in lieu of any cash payment due upon

                                       3
<PAGE>   4

the redemption of any shares of Series B Preferred Stock, (iii) shares of Common
Stock that has been issued in lieu of any cash payment due upon the redemption
of any shares of Series C Preferred Stock, (iv) shares of Common Stock that are
issuable in lieu of any cash payment due upon the redemption of any shares of
Series B Preferred Stock, and (v) shares of Common Stock that are issuable in
lieu of any cash payment due upon the redemption of any shares of Series C
Preferred Stock, and (c) the intended method of disposition of the Registrable
Securities desired to be sold or resold. Except to the extent the managing or
lead underwriter for such public offering objects to the same, NAC shall,
subject to the conditions set forth below, include in such registration
statement all of the Registrable Securities with respect to which NAC has
received a proper and timely notice from the relevant Holder as contemplated
above. In the event the managing or lead underwriter for such public offering
objects to the inclusion in such registration statement of some, but not all, of
the Registrable Securities with respect to which NAC has received proper and
timely notices from the relevant Holders as contemplated above, no such Holder
shall be entitled to have included in such registration statement more than
its/his/her Allocable Fraction of the total number of Registrable Securities
that such managing or lead underwriter will permit to be included in such
registration statement, where the "ALLOCABLE FRACTION" for any such Holder means
a fraction the numerator of which is the number of Registrable Securities that
are then held by such Holder and the denominator of which is the total number of
Registrable Securities that (a) are then held by all Holders who have, as
contemplated above, given proper and timely notices of their desires to have
some or all of their Registrable Securities sold or resold as part of or in
conjunction with such public offering and (b) are not then Forfeitable Shares
that have not become non-forfeitable pursuant to the terms of the Merger
Agreement. The Holders acknowledge and agree that (I) NAC may hereafter grant
piggy-back registration rights to other holders of securities of NAC , and (II)
in such event, if the managing or lead underwriter for such public offering
objects to the inclusion in the registration statement of some, but not all, of
the securities that the Holders and such other holders desire to have included
in such registration statement, such managing or lead underwriter shall include
in such public offering only such securities (in addition to those being offered
by NAC) as such managing or lead underwriter, in its sole and absolute
discretion, shall deem appropriate, and shall be entitled, in its sole and
absolute discretion, to apportion those securities to, and between or among, the
Holders and such other holders in such amount(s) or portion(s) as such managing
or lead underwriter, in its sole and absolute discretion, shall deem appropriate
and each Holder shall be entitled to have included in such registration
statement only up to his/her/its Allocable Fraction of such amount or portion as
has been allocated or apportioned by such managing or lead underwriter to the
Holders.

      (b) In the event any Holder elects, as contemplated by clause (a) above,
to have any of its/his/her Registrable Securities included for sale or resale in
the public offering contemplated thereby, such Holder (I) shall fully and
promptly cooperate with the underwriter(s) for such public offering, which
cooperation shall include, without limitation, the execution and delivery of
such underwriting agreement as such underwriter(s) may request and taking all
such other actions as NAC and/or such underwriter(s) may from time to time
request, which request may include, without

                                       4
<PAGE>   5

limitation, an undertaking not to sell or otherwise dispose of any Registrable
Securities for a specified period of time from any time prior to the
effectiveness of the applicable registration statement through up to 180 days
following the effectiveness of the applicable registration statement (provided,
however, that, if the officers, the directors, any principal shareholders or any
other holders whose securities are simultaneously being registered are required
to agree not to sell or otherwise dispose of their shares for a longer period of
time, such Holder shall agree to such longer time as a condition to the
inclusion therein of any securities of such Holder) and (II) shall fully and
promptly cooperate with any reasonable request made by NAC in connection with
the consummation of such public offering, which cooperation shall include,
without limitation, the execution and delivery of such agreements and other
documents as NAC may reasonably request and the taking of all such other actions
as NAC may from time to time reasonably request . The right of any Holder to
have any of its/his/her Registrable Securities included in any registration
statement contemplated by clause (a) above shall be conditioned upon such
Holder's full compliance with this clause (b), and in the absence of such full
compliance any Registrable Securities otherwise included in such registration
statement shall be withdrawn from registration thereunder.

      2.3 OBLIGATIONS OF NAC. Whenever required to effect the registration of
any Registrable Securities pursuant to SECTION 2.1 or 2.2 hereof, NAC shall,
within a commercially reasonably time:

          (a) Prepare and file with the SEC such amendments and supplements to
such registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement.

          (b) Furnish to the Holders such number of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in order
to facilitate the disposition of Registrable Securities owned by them.

          (c) Use commercially reasonable efforts to register and qualify the
securities covered by such registration statement under such other securities or
Blue Sky laws of such jurisdictions as shall be reasonably requested by the
Shareholders' Representative; provided that NAC shall not be required in
connection therewith or as a condition thereto to qualify to do business or to
file a general consent to service of process in any such states or
jurisdictions.

          (d) Notify each Holder holding any Registrable Securities covered by
such registration statement at any time when a prospectus relating thereto is
required to be delivered under the Securities Act of the happening of any event
as a result of which the prospectus included in such registration statement, as
then in effect, includes an untrue statement of a material fact or omits to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in light of the circumstances then existing.

                                       5
<PAGE>   6

      2.4 EXPENSES OF REGISTRATION. NAC shall pay all Registration Expenses,
except that the Holders shall bear all Selling Expenses attributable to their
Registrable Securities being registered and fees of their counsel.

3.    INDEMNIFICATION

      3.1 To the extent permitted by law, NAC will indemnify and hold harmless
each Holder, the partners, officers and directors of each Holder, and each
person, if any, who controls such Holder against any losses, claims, damages or
liabilities (joint or several) to which it/he/she or they may become subject
under the Securities Act, the Exchange Act or other federal or state law,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively a "VIOLATION") by NAC: (i) any untrue
statement or alleged untrue statement of a material fact contained in such
registration statement, including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any
violation or alleged violation by NAC of the Securities Act, the Exchange Act,
any state securities law or any rule or regulation promulgated under the
Securities Act, the Exchange Act or any state securities law in connection with
the offering covered by such registration statement; and NAC will pay to each
such Holder, partner, officer, director or controlling person for any legal or
other expenses reasonably incurred by him/her/it in connection with
investigating or defending any such loss, claim, damage, liability or action if
it is judicially determined that there was such a Violation (provided, however,
that, if a party indemnified hereunder shall provide to NAC an undertaking in
form and substance reasonably satisfactory to NAC to the effect that such
indemnified party will refund to NAC all payments made or advanced to such
indemnified party pursuant to this clause (iii) if it is not finally judicially
determined that there has been a Violation with respect to which such
indemnified party is entitled to indemnification hereunder, NAC shall from time
to time, as the same are incurred and subject to receipt of written evidence
that the same have been incurred, advance to such indemnified party funds to
cover such legal and other expenses); provided, however, that the indemnity
agreement contained in this SECTION 3.1 shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such
settlement is effected without the written consent of NAC, which consent shall
not be unreasonably withheld, nor shall NAC be liable in any such case for any
such loss, claim, damage, liability or action to the extent that it arises out
of or is based upon (i) a Violation that occurs in reliance upon, and in
conformity with, written information furnished for use in connection with such
registration by, or on behalf of, such Holder, partner, officer, director or
controlling person of such Holder, (ii) such Holder's failure to deliver, at the
time required by the Securities Act, a final or amended prospectus that corrects
any actual or alleged untrue statement or omission contained in any preliminary
prospectus or prior prospectus if such Holder previously has been provided such
final or amended prospectus in accordance with SECTION 2.3 or otherwise, (iii)
any offer or sale, or solicitation of any offer, made by the indemnified party
in any jurisdiction in which the same is not registered or otherwise permitted,
unless such indemnified party has been advised in writing by NAC that such offer
or

                                       6
<PAGE>   7

sale, or such solicitation of any offer, is registered or otherwise permitted in
such jurisdiction, or (iv) any other breach or violation by an indemnified party
of the Securities Act, the Exchange Act or other federal or state law, exclusive
of any such breach or violation to the extent the same is the consequence of any
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, or the omission to state therein any
material fact required to be stated therein or necessary to make the statements
stated therein not misleading.

      3.2 To the extent permitted by law, each Holder will, if Registrable
Securities held by such Holder are included in the securities as to which such
registration, qualification or compliance is being effected, indemnify and hold
harmless NAC, each of its directors and officers and each person, if any, who
controls NAC within the meaning of the Securities Act and any other Holder
selling securities under such registration statement or any of such other
Holder's partners, directors or officers or any person who controls such other
Holder, against any losses, claims, damages or liabilities (joint or several) to
which NAC or any such director, officer, controlling person or other such
Holder, or partner, director, officer or controlling person of such other
Holder, may become subject under the Securities Act, the Exchange Act or other
federal or state law, insofar as such losses, claims, damages or liabilities (or
actions in respect thereto) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information furnished by, or on
behalf of, such Holder for use in connection with such registration; and each
such Holder will pay any legal or other expenses reasonably incurred by NAC or
any such director, officer, controlling person or other Holder, or partner,
officer, director or controlling person of such other Holder in connection with
investigating or defending any such loss, claim, damage, liability or action if
it is judicially determined that there was such a Violation; provided, however,
that the indemnity agreement contained in this SECTION 3.2 shall not apply to
any Holder with respect to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the written
consent of such Holder, which consent shall not be unreasonably withheld; and
provided, further, however, that in no event shall any indemnity under this
SECTION 3 exceed the net proceeds from the offering received by such Holder.

      3.3 Promptly after receipt by an indemnified party under this SECTION 3 of
notice of the commencement of any action (including any governmental action)
with respect to which indemnification under this SECTION 3 may be sought by such
indemnified party, such indemnified party will, if a claim in respect thereof is
to be made against any indemnifying party under this SECTION 3, deliver to the
indemnifying party a written notice of the commencement thereof, and the
indemnifying party shall have the right to participate in, and (to the extent
the indemnifying party so desires, jointly with any other indemnifying party
similarly noticed) assume, the defense thereof with counsel selected by the
indemnifying party or parties with the consent of the indemnified party or
parties (which consent shall not be unreasonably withheld or delayed); provided,
however, that an indemnified party shall have the right to retain its own
counsel, with the fees and expenses to be paid by the indemnifying party, if

                                       7
<PAGE>   8

representation of such indemnified party by the counsel retained by the
indemnifying party would be inappropriate due to actual or potential differing
interests between such indemnified party and any other party represented by such
counsel in such proceeding (provided, however, that under no circumstances shall
any indemnifying party be obligated to pay for more than one counsel
representing any or all of the parties intended to be indemnified hereunder).
The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action, if materially
prejudicial to its ability to defend such action, shall relieve such
indemnifying party of liability to the indemnified party under this SECTION 3
but only to the extent such failure is materially prejudicial to its ability to
defend such action, but the omission so to deliver written notice to the
indemnifying party will not relieve it of any liability that it may have to any
indemnified party otherwise than under this SECTION 3.

      3.4 If the indemnification provided for in this SECTION 3 is held by a
court of competent jurisdiction to be unavailable to an indemnified party with
respect to any losses, claims, damages or liabilities referred to herein, the
indemnifying party, in lieu of indemnifying such indemnified party thereunder,
shall to the extent permitted by applicable law contribute to the amount paid or
payable by such indemnified party as a result of such loss, claim, damage or
liability in such proportion as is appropriate to reflect the relative fault of
the indemnifying party, on the one hand, and of the indemnified party, on the
other hand, in connection with the Violation(s) that resulted in such loss,
claim, damage or liability, as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by a court of law by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact
or the omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission; provided, that in no event shall any contribution by a
Holder hereunder exceed the net proceeds from the offering received by such
Holder.

      3.5 The obligations of NAC and the Holders under this SECTION 3 shall
survive completion of any offering of Registrable Securities in a registration
statement and the termination of this Agreement. No indemnifying party, in the
defense of any such claim or litigation, shall, except with the consent of each
indemnified party, consent to entry of any judgment or enter into any settlement
that does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such indemnified party of a release from all liability
in respect to such claim or litigation.

4.    ASSIGNMENT OF REGISTRATION RIGHTS.

      The rights to cause NAC to register Registrable Securities pursuant to
this Agreement may be assigned by a Holder to a transferee or assignee of
Registrable Securities that (a) is a subsidiary, parent, general partner,
limited partner, retired partner, member or retired member, or director,
officer, employee or owner, of such Holder, or (b) is a member of such Holder's

                                       8
<PAGE>   9

immediate family or trust or other entity controlled by or formed for the
benefit of such Holder or members of such Holder's immediate family; provided,
however, that (i) the transferor shall, within ten (10) days after such
transfer, furnish to NAC written notice of the name and address of such
transferee or assignee and the securities with respect to which such
registration rights are being assigned and (ii) such transferee shall agree, in
writing in form and substance reasonably satisfactory to NAC, to be subject to
all restrictions set forth in this Agreement. Notwithstanding anything contained
herein to the contrary, no such assignment or transfer shall be made by any
Holder, without the prior written consent of NAC (which consent may be withheld
in NAC's sole discretion), during the period in which the Standstill Agreement
shall be in effect unless such assignment or transfer is expressly permitted in
the Standstill Agreement.

5.    RULE 144 REPORTING

      With a view to making available to the Holders the benefits of certain
rules and regulations of the SEC that may permit the sale of the Registrable
Securities to the public without registration, NAC agrees to use its
commercially reasonable efforts to:

           (a) Make and keep public information available, as those terms are
understood and defined in SEC Rule 144 or any similar or analogous rule
promulgated under the Securities Act;

           (b) File with the SEC, in a timely manner, all reports and other
documents required of NAC under the Exchange Act; and

           (c) So long as a Holder owns any Registrable Securities, furnish to
such Holder forthwith upon request: a written statement by NAC as to its
compliance with the reporting requirements of Rule 144 of the Securities Act and
of the Exchange Act; a copy of the most recent annual or quarterly report of
NAC; and such other reports and documents as a Holder may reasonably request in
availing itself of any rule or regulation of the SEC allowing it to sell any
such securities without registration.

6.    MISCELLANEOUS

      6.1 NO WAIVER; CUMULATIVE REMEDIES. No failure or delay on the part of any
party to this Agreement in exercising any right, power or remedy hereunder shall
operate as a waiver thereof; nor shall any single or partial exercise of any
such right, power or remedy preclude any other or further exercise thereof or
the exercise of any other right, power or remedy hereunder. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

      6.2 AMENDMENTS AND WAIVERS. Except as hereinafter provided, amendments to
this Agreement shall require and shall be effective upon receipt of the written
consent of NAC and of either the Majority Holders (as hereinafter defined) or
the Shareholders' Representative, who is hereby expressly granted the right on
behalf of all of the Shareholders (and their heirs, administrators, legal
representatives, successors and assigns) to amend and/or supplement this
Agreement. Except as hereinafter provided, compliance with any covenant or
provision set forth herein may be waived upon written

                                       9
<PAGE>   10

consent by the party or parties whose rights are being waived; provided, that,
the rights of holders of Registrable Securities can be waived only upon the
written consent of the Majority Holders or the Shareholders' Representative. Any
waiver or amendment may be given subject to satisfaction of conditions stated
therein, and any waiver or amendment shall be effective only in the specific
instance(s) and for the specific purpose(s) for which given. As used herein,
"MAJORITY HOLDERS" means any Holder or group of Holders who or that,
individually or in the aggregate, at the relevant time own of record a majority
of the outstanding Registrable Securities (whether or not then subject to
forfeiture, but exclusive of any thereof that, under the terms of the Merger
Agreement, have been forfeited) then owned of record by all Holders, it being
agreed and understood that, for the purposes of determining whether any Holder
or group of Holders own of record a majority of the outstanding Registrable
Securities, each Holder will be deemed to hold, in addition to those shares of
Common Stock that are then held of record by such Holder and that were issued
either (i) pursuant to Section 1.5 of the Merger Agreement or (ii) in lieu of
any cash payment due upon the redemption of any shares of Preferred Stock, the
shares of Common Stock that are issuable in lieu of any cash payment due upon
the redemption of those outstanding shares of Preferred Stock then held of
record by such Holder.

      6.3 NOTICES.

      As the terms "notice" or "notices" are used herein as between the parties,
such term shall mean a written document, explaining the reason for the notice,
and the same shall be mailed by United States Postal Service Via Certified Mail,
Return Receipt Requested, or by recognized overnight courier service, addressed
as follows:

         If to NAC:

                  National Auto Credit, Inc.
                  30000 Aurora Road
                  Solon, Ohio 44139
                  Attn: Chief Executive Officer
                  Fax: _________

         with a copy to:

                  Parker, Duryee, Rosoff & Haft, P.C.
                  529 Fifth Avenue
                  New York, New York 10017
                  Attn: Herbert F. Kozlov, Esq.
                  Fax: 212-972-9487

         If to the Holders or any of them:

                  Ernest C. Garcia, II

                                       10
<PAGE>   11

                  Verde Reinsurance Company, Ltd.
                  2525 East Camelback, Suite 1150
                  Phoenix, AZ  85016
                  Fax:  602-667-2484

         with a copy to:

                  Steven D. Pidgeon, Esquire
                  Snell & Wilmer, LLP
                  One Arizona Center
                  Phoenix, AZ  85004
                  Fax:  (602) 382-6070

Such notice shall be deemed to have been given on the date placed in the U.S.
Mails or delivered to the overnight courier service, whether actually received
by the addressee or not, and shall be deemed received by the addressee, whether
actually received by the addressee or not, on the third business day after being
so mailed or the next business day after being sent by overnight courier
service. The parties may from time to time amend the above addresses and names
by written notice given to the other party; provided, however, that any notice
contemplated by SECTION 2.2 above to be sent to any Holder shall be sent to such
Holder at its/his/her address as reflected on the books of NAC.

      6.4 TERMINATION. This Agreement shall terminate with respect to any holder
of Registrable Securities on the earlier of the date that all of such holder's
Registrable Securities (a) have been sold pursuant to a registration statement
under the Securities Act or have been otherwise sold or disposed of otherwise
than to a transferee as contemplated by SECTION 4 hereof or (b) may immediately
be sold by such holder pursuant to Rule 144 under the Securities Act during any
90-day period; provided, however, that this Agreement shall not terminate if any
shares are subject to any then-effective registration rights pursuant to SECTION
2 hereof unless such shares have been sold or resold under an effective
registration statement.

      6.5 BINDING EFFECT; ASSIGNMENT. This Agreement shall be binding upon and
be enforceable against the parties hereto and their respective heirs,
administrators, legal representatives, successors and assigns and shall inure to
the benefit of and be enforceable by the parties hereto and their respective
heirs, administrators, legal representatives, successors and permitted assigns,
except that (a) NAC shall not have the right to delegate its obligations
hereunder or to assign its rights hereunder and (b) no such assignment shall be
made by any Shareholder (or any heir, administrator, legal representative,
successor or assign of any Shareholder), without the prior written consent of
NAC (which consent may be withheld in NAC's sole discretion), during the period
in which and the Standstill Agreement shall be in effect unless such assignment
is expressly permitted in the Standstill Agreement.

      6.6 PRIOR AGREEMENTS. This Agreement constitutes the entire agreement
between and among the parties with respect to the subject matter hereof and

                                       11
<PAGE>   12

supersedes any prior or contemporaneous understandings or agreements (written or
oral) concerning the subject matter hereof, except for those agreements and
understandings contained in the Merger Agreement and the other agreements,
documents and instruments contemplated thereby and hereby.

      6.7 SEVERABILITY. The provisions of this Agreement are severable, and in
the event that any court of competent jurisdiction shall determine that any one
or more of the provisions or part of a provision contained in this Agreement
shall, for any reason, be held to be invalid, illegal or unenforceable in any
respect, such invalidity, illegality or unenforceability shall not affect any
other provision or part of a provision of this Agreement, but this Agreement
shall be reformed and construed as if such invalid, illegal or unenforceable
provision, or part of a provision, had never been contained herein, and such
provision or part shall be reformed so that it would be valid, legal and
enforceable to the maximum extent possible.

      6.8 GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the substantive laws of the State of Delaware applicable to
contracts executed and to be performed wholly within that State, without giving
effect to the choice or conflict of laws provisions or principles thereof.

      6.9 WAIVER OF JURY TRIAL. Each of the parties hereto expressly waives its
right to a jury trial with respect to any such suit, litigation or other
judicial proceeding.

      6.10 HEADINGS; INTERPRETATION. Article, section and subsection headings in
this Agreement are included herein for convenience of reference only and shall
not constitute a part of this Agreement for any other purpose. This Agreement is
the product of mutual negotiation; therefore, no party shall be deemed the
draftsperson hereof.

      6.11 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same
instrument, and any of the parties hereto may execute this Agreement by signing
any such counterpart.

      6.12 FURTHER ASSURANCES. From and after the date of this Agreement, upon
the request of any party hereto, the other parties shall execute and deliver
such instruments, documents and other writings as may be reasonably necessary or
desirable to confirm and carry out, and to effectuate fully, the intent and
purposes of this Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       12
<PAGE>   13

      IN WITNESS WHEREOF, the undersigned have executed this Registration Rights
Agreement as of the day and year first above written.

NATIONAL AUTO CREDIT, INC.                    VERDE REINSURANCE COMPANY, LTD.

By:                                           By:
   --------------------------------              -------------------------------

Its:                                          Its:
    -------------------------------               ------------------------------

ERNIE GARCIA III 2000 TRUST                   BRIAN GARCIA 2000 TRUST

By:                                           By:
   --------------------------------              -------------------------------

Its:                                          Its:
    -------------------------------               ------------------------------

-----------------------------------           ----------------------------------
ERNEST C. GARCIA                              RAY FIDEL

-----------------------------------           ----------------------------------
STEVEN JOHNSON                                MARK SAUDER

EJMS INVESTORS LIMITED PARTNERSHIP

By: SJME Investors, LLC, an
Arizona limited liability company,
its General Partner                           ----------------------------------
                                              COLIN BACHINSKY

By:
   --------------------------------

Its:
    -------------------------------

-----------------------------------           ----------------------------------
CHRIS ROMPALO                                 DONNA CLAWSON

                                       13
<PAGE>   14

-----------------------------------           ----------------------------------
MARY REINER                                   KATHY CHACON

                                       14

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