Document:

Exhibit 10.2

 

EXECUTION VERSION

 

CONSENT AND AMENDMENT

 

CONSENT AND AMENDMENT,
dated as of December 14, 2018 (this “Consent and Amendment”), in respect of the Term Loan and Guaranty Agreement,
dated as of April 23, 2013, among Tower Automotive Holdings USA, LLC (the “Borrower”), Tower International,
Inc. (“Holdings”), Tower Automotive Holdings I, LLC (“Holdco”), Tower Automotive Holdings
II(a), LLC (“Foreign Holdco”), and the other Guarantors party thereto, the Lenders party thereto and Citibank
N.A., as administrative agent (the “Agent”) (as in effect immediately prior to giving effect to this Consent
and Amendment, the “Loan Agreement”, and as amended by this Consent and Amendment, the “Amended Loan
Agreement”).

 

WHEREAS, the Borrower
has notified the Agent and the Lenders that an indirect Subsidiary of Holdco may sell or otherwise dispose of all or substantially
all of the Equity Interests of Tower Automotive Holdings Europe B.V. to Financière SNOP Dunois S.A. (such disposition, the
“Tower Europe Disposition”);

 

WHEREAS, in connection
with the consummation of the Tower Europe Disposition, the Borrower has requested certain amendments to the Loan Agreement (the
“Amendments”);

 

WHEREAS, the Lenders
party hereto (which constitute the Required Lenders) have agreed to consent to the Tower Europe Disposition and to the Amendments;

 

WHEREAS, Citigroup
Global Markets Inc. (“CGMI”) has agreed to act in the roles and pursuant to the titles set forth in that certain
engagement letter, dated November 21, 2018 (the “CGMI Engagement Letter”), among the Borrower, Holdings and
CGMI, in respect of this Consent and Amendment;

 

NOW, THEREFORE, the parties hereto agree
as follows:

 

Section
1. Defined Terms; References. Unless otherwise specifically defined herein, each term used herein which is defined
in the Loan Agreement has the meaning assigned to such term in the Amended Loan Agreement. The rules of construction and other
interpretive provisions specified in Section 1.02 of the Amended Loan Agreement shall apply to this Consent and Amendment, including
terms defined in the preamble and recitals hereto.

 

Section
2. Consent. Subject to the satisfaction of the conditions set forth in Section 6 below and in the proviso to this
sentence, and in reliance on the representations and warranties contained in Section 5 below, the Lenders party hereto (a)(i) hereby
consent to the Tower Europe Disposition and agree that the consummation of the Tower Europe Disposition shall be permitted under
the Loan Agreement, notwithstanding anything to the contrary therein or in any other Loan Document; and (ii) hereby agree that
no Default or Event of Default shall arise solely as a result of the consummation thereof; (b) hereby agree that notwithstanding
the terms of the Loan Agreement (including Section 2.11 thereof), the prepayment of Loans required by the proviso to this sentence
shall be the only prepayment of Loans the Borrower shall be required to make in connection with the Tower Europe Disposition and
the remaining proceeds of the Tower Europe Disposition may be retained by the Borrower and shall not subject to the requirements
of Section 2.11 of the Loan Agreement; provided that the consent set forth in this Section 2 and the amendments set forth
in Section 3 shall become effective only if substantially simultaneously with the consummation of the Tower Europe Disposition,
the Borrower shall have prepaid outstanding Term Loans in an aggregate principal amount of $50,000,000 in accordance with Section
2.12(a) of the Loan Agreement; provided further that the prepayment of Term Loans in the foregoing proviso shall be applied
to each outstanding Class of Loans in accordance with Section 2.12(b) of the Loan Agreement; and (c) hereby consent to the sale
or transfer by the Borrower and one or more of its Affiliates of certain intercompany loans (the “Intercompany Note Sale”)
and agree that the consummation of such Intercompany Note Sale by the Borrower and its Affiliates shall be permitted under the
Loan Agreement, notwithstanding anything to the contrary therein or in any other Loan Document.

 

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Section
3. Amendments. Subject to the satisfaction of the conditions set forth in Section 6 below and in the proviso to Section
2, the Loan Agreement (and the schedules thereto) shall be amended as follows:

 

(a)       by
adding the following definitions in Section 1.01 in alphabetical order:

 

““Consent
and Amendment” shall mean that certain Consent and Amendment, dated as of December 14, 2018, among the Borrower, Holdings,
Holdco, Foreign Holdco, the other Guarantors party thereto, the Lenders party thereto and the Agent.”

 

““Consent
and Amendment Effective Date” shall have the meaning provided in the Consent and Amendment.”

 

““Dividing
Person” has the meaning assigned to it in the definition of “Division”.”

 

““Division”
means the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more
Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing
Person and pursuant to which the Dividing Person may or may not survive.”

 

““Division
Successor” means any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion
of the assets, liabilities and/or obligations previously held by such Dividing Person immediately prior to the consummation of
such Division. A Dividing Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed
a Division Successor upon the occurrence of such Division.”

 

““LLC”
means any Person that is a limited liability company under the laws of its jurisdiction of formation.”;

 

(b)       by
amending and restating the definition of “Incremental Term Loan Amount” in Section 1.01 of the Credit Agreement as
follows:

 

““Incremental
Term Loan Amount” shall mean, at any time, the sum of (i) the greater of (A) $175,000,000 and (B) an amount equal to
100% of Consolidated EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such date, taken
as one accounting period plus (ii) such other amount so long as, on a Pro Forma Basis, after giving effect to the incurrence
of any such Incremental Term Loan Facility (including after giving effect on a Pro Forma Basis to any acquisition consummated concurrently
therewith and all other events that are funded out of the proceeds of such Incremental Term Loan Facility), the Total Net Leverage
Ratio, recomputed as of the last day of the most recently ended fiscal quarter of Holdco for which financial statements are available
or required to have been delivered pursuant to Section 5.03, is equal to or less than 2.00:1.00.”;

 

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(c)       by
amending and restating the definition of “Total Net Debt” in Section 1.01 of the Credit Agreement as follows:

 

““Total
Net Debt” shall mean, at any time, the sum of (a) the aggregate amount of Indebtedness that would be reflected on a consolidated
balance sheet of the Holdco Group prepared in accordance with GAAP at such time (other than any Indebtedness of the type described
in clause (vi) of the definition of “Indebtedness”) minus (b) the lesser of (i) the aggregate amount of Unrestricted
Cash that would be reflected on a consolidated balance sheet of the Holdco Group prepared in accordance with GAAP at such time
and (ii) $300,000,000.”;

 

(d)       by
amending Section 3.05 by deleting the reference therein to “the ARCA Effective Date” and replacing it with “the
Consent and Amendment Effective Date”;

 

(e)       by
amending Section 3.15(a) by deleting the reference therein to “the ARCA Effective Date” and replacing it with “the
Consent and Amendment Effective Date”;

 

(f)        by
amending and restating Section 5.09(a) as follows:

 

“(a) Subject to applicable
law, Holdco shall cause each of its Domestic Subsidiaries formed or acquired after the ARCA Effective Date and each Division Successor
pursuant to a Division of a Loan Party to become a Loan Party by executing the Joinder Agreement set forth as Exhibit G (the “Joinder
Agreement”). Upon execution and delivery thereof, each such Person shall (i) automatically become a Subsidiary Guarantor
hereunder and thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under the Loan Documents
and (ii) execute supplements to the Security Documents pursuant to which it will grant Liens to the Agent, for the benefit of the
Agent and the Lenders, in any and all property of such Subsidiary Guarantor to the extent provided for in the Security Documents,
including a Mortgage on the interest of such Subsidiary Guarantor in each real property located in the United States owned or leased
by it (subject to Sections 5.09(d) and 5.09(e)).”;

 

(g)       by
amending and restating Section 6.01(a) as follows:

 

“(a)
Liens on any property or any assets of any Group Member existing on the Consent and Amendment Effective Date as reflected on Schedule
6.01; provided that (i) such Lien shall not apply to any other property or asset of such Group Member (other than after
acquired property affixed thereto or incorporated therein and proceeds or products thereof) and (ii) such Lien shall secure only
those obligations which it secures on the date hereof and Permitted Refinancing Indebtedness with respect thereto;”;

 

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(h)       by
amending and restating Section 6.02(a) as follows:

 

“(a) No Group Member will
merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, consummate a
Division as the Dividing Person, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect
thereto no Default shall have occurred and be continuing (i) any Person may merge into Holdco in a transaction in which Holdco
is the surviving corporation; (ii) any Group Member (other than Holdco) may merge into any other Group Member in a transaction
in which the surviving entity is a Group Member (provided that if any party to any such transaction is (A) a Loan Party,
the surviving entity of such transaction shall be a Loan Party, (B) a Domestic Subsidiary, the surviving entity of such transaction
shall be a Domestic Subsidiary and (C) the Borrower, the surviving entity of such transaction shall be the Borrower); (iii) any
Group Member that is an LLC (other than the Borrower) may consummate a Division as the Dividing Person if, immediately upon the
consummation of the Division, the assets of the applicable Dividing Person are held by one or more Subsidiaries at such time, or,
with respect to assets not so held by one or more Subsidiaries, such Division, in the aggregate, would otherwise result in a Disposition
permitted by Section 6.06(l), (iv) any Subsidiary (other than the Borrower) may liquidate or dissolve if Holdco determines in good
faith that such liquidation or dissolution is in the best interests of the Holdco Group and is not materially disadvantageous to
the Lenders; and (v) any Permitted Acquisition or disposition permitted by Section 6.06 may be effected by way of a merger or consolidation
of a Subsidiary provided that, notwithstanding anything to the contrary in this Agreement, any Subsidiary which is a Division Successor
resulting from a Division of assets of a Subsidiary (other than a Non-Material Subsidiary) may not be deemed to be a Non-Material
Subsidiary at the time of or in connection with the applicable Division.”;

 

(i)        by
amending and restating Section 6.03(a) as follows:

 

“(a) Indebtedness existing on
the Consent and Amendment Effective Date and set forth  on Schedule 6.03 and Permitted Refinancing Indebtedness with respect
thereto and certain intercompany indebtedness set forth on Schedule 6.03 under the title “Consent  and Amendment
Effective Date Intercompany Indebtedness” existing on the Consent and  Amendment Effective Date and Permitted Refinancing
Indebtedness with respect thereto,  provided that such refinancing is limited to other intercompany debt;”;

 

(j)        by
amending and restating Section 6.03(d) as follows:

 

 “(d)(i) Indebtedness incurred
subsequent to the ARCA Effective Date secured by  purchase money Liens (including Capitalized Leases), (ii) Indebtedness of
a Person that  becomes a Group Member (other than a result of a Division) after the ARCA Effective  Date, provided that
such Indebtedness is not created in contemplation thereof, and (iii)  Permitted Refinancing Indebtedness in respect of Indebtedness
described in (i) and (ii), in  an aggregate amount for (i), (ii) and (iii) not to exceed $75,000,000;”;

 

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(k)       by
amending and restating Section 6.05(f) as follows:

 

“(f)
Investments existing on the Consent and Amendment Effective Date as set forth on Schedule 6.05 and any modification, replacement,
renewal, reinvestment or extension thereof (provided that the amount of the original Investment is not increased except as otherwise
permitted by this Section 6.05);”;

 

(l)        by
amending and restating the first sentence of Section 6.06 as follows:

 

“No Group
Member will sell or otherwise dispose (including pursuant to a Division) of any assets (including, without limitation, the capital
stock of any Subsidiary), except for:”;

 

(m)       by
deleting the word “and” after clause (vi) in Section 6.07(a) and replacing it with “,” and adding the following
new clause (viii) to Section 6.07(a):

 

“ and (viii) so long as
no Default shall have occurred and be continuing or would result therefrom, Holdco may make Restricted Payments to Holdings, in
an amount not to exceed $80,000,000, which amounts shall be used by Holdings to repurchase its Equity Interests.”;

 

(n)       by
replacing Schedule 3.05 with Schedule 3.05 attached as Annex I hereto;

 

(o)       by
replacing Schedule 3.12(a) with Schedule 3.12(a) attached as Annex II hereto;

 

(p)       by
replacing Schedule 3.15(a) with Schedule 3.15(a) attached as Annex III hereto;

 

(q)       by
replacing Schedule 6.01 with Schedule 6.01 attached as Annex IV hereto;

 

(r)        by
replacing Schedule 6.03 with Schedule 6.03 attached as Annex V hereto;

 

(s)       by
replacing Schedule 6.05 with Schedule 6.05 attached as Annex VI hereto; and

 

(t)        by
replacing Schedule 6.06(j) with Schedule 6.06(j) attached as Annex VII hereto.

 

Section
4. Effect of Consent and Amendment; Reaffirmation; Etc. 

 

(a)       The
terms and provisions set forth in this Consent and Amendment shall modify and supersede all inconsistent terms and provisions of
the Loan Agreement and each other Loan Document, but shall not constitute a consent to the modification or waiver of any other
term or condition of the Loan Agreement or any other Loan Document. Except as expressly set forth herein or in the Amended Loan
Agreement, this Consent and Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise
affect the rights and remedies of the Lenders or the Agent under the Loan Agreement or under any other Loan Document and shall
not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the
Loan Agreement or any other provision of the Loan Agreement or of any other Loan Document, all of which are ratified and affirmed
in all respects and shall continue in full force and effect.

 

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(b)       Without
limiting the foregoing, (i) each Loan Party acknowledges and agrees that (A) each Loan Document to which it is a party is hereby
confirmed and ratified and shall remain in full force and effect according to its respective terms (in the case of the Loan Agreement,
as amended hereby) and (B) the Security Documents do, and all of the Collateral does, and in each case shall continue to, secure
the payment of all Secured Obligations on the terms and conditions set forth in the Security Documents, and hereby ratifies the
security interests granted by it pursuant to the Security Documents and (ii) each Guarantor hereby confirms and ratifies its continuing
unconditional obligations as Guarantor in accordance with Article 9 of the Loan Agreement with respect to all of the Secured Obligations
of each other Secured Obligor.

 

(c)       This
Consent and Amendment constitutes a Loan Document.

 

Section
5. Representations of Loan Parties. Each of the Loan Parties hereby represents and warrants that:

 

(a)       all
representations and warranties set forth in Article 3 of the Amended Loan Agreement and in each other Loan Document shall be true
and correct in all material respects on and as of the Consent and Amendment Effective Date with the same effect as if made on and
as of such date (unless such representation or warranty is made only as of a specific date, in which event such representation
or warranty shall be true and correct in all material respects as of such specific date);

 

(b)       after
giving effect to the effectiveness of the consent set forth in Section 2 hereof and the amendments set forth in Section 3 hereof,
no Default or Event of Default shall exist or would result from the transactions contemplated by this Consent and Amendment; and

 

(c)       immediately
after the consummation of the Tower Europe Disposition and the Intercompany Note Sale, each Loan Party will be Solvent.

 

Section
6. Effectiveness. This Consent and Amendment shall become effective on the date when the Agent shall have received
from each Loan Party, the Agent and Lenders constituting the Required Lenders either (i) a counterpart of the Consent and
Amendment signed on behalf of each such party or (ii) written evidence satisfactory to the Agent (which may include telecopy
or electronic transmission of a signed signature page of the Amendment) that each such party has signed a counterpart of the Consent
and Amendment.

 

Notwithstanding the foregoing,
the consent set forth in Section 2 and the amendments set forth in Section 3, shall not become effective until the date (the “Consent
and Amendment Effective Date”) when each of the following conditions shall have been satisfied:

 

(a)       the
Tower Europe Disposition and the Intercompany Note Sale shall have been consummated and the condition set forth in the proviso
to Section 2 shall have been satisfied;

 

(b)       the Borrower shall have paid (i) all fees due and payable to CGMI pursuant to the CGMI Engagement Letter and (ii) to the Agent,
for the account of each Lender that has executed and delivered a signature page hereto on or prior to December 14, 2018, a consent
fee in an amount equal to 0.25% of the Term Loans held by each such Lender as of such date;

 

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(c)       the
Agent and CGMI shall have received all reasonable and documented costs and expenses required to be paid or reimbursed under Section
10.05 of the Loan Agreement or the Engagement Letter for which invoices have been presented a reasonable period of time prior to
the Consent and Amendment Effective Date;

 

(d)       the
representations and warranties set forth in Section 5 of this Consent and Amendment shall be true and correct;

 

(e)       the
Agent shall have received a certificate of a Financial Officer of the Borrower as to the representations set forth in Section 5;
and

 

(f)        the
Agent shall have received evidence that, as of the Consent and Amendment Effective Date, the Loan Parties shall have entered into
a corresponding amendment to that certain Fourth Amended and Restated Revolving Credit and Guaranty Agreement, dated as of March
7, 2017, among Borrower, Holdings, Holdco, Foreign Holdco, the Subsidiary Guarantors party thereto, the financial institutions
from time to time party thereto, as lenders, and JPMorgan Chase Bank, N.A., as issuing lender, swing line lender and as administrative
agent for the lenders party thereto (the “ABL Lenders”) (as amended, restated, amended and restated, supplemented
or otherwise modified prior to the Consent and Amendment Effective Date, the “ABL Credit Agreement”), providing
consent by the ABL Lenders to the Tower Europe Disposition and the Intercompany Note Sale, on terms reasonably satisfactory to
the Agent (it being understood and agreed that the draft amendment to the ABL Credit Agreement delivered to the Agent on December
14, 2018 is reasonably satisfactory to the Agent), and the ABL Credit Agreement as so amended shall be in full force and effect
as of the Consent and Amendment Effective Date.

 

Section
7. Governing Law. THIS CONSENT AND AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

Section
8. Counterparts. This Consent and Amendment may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract.
Delivery of an executed signature page to this Consent and Amendment by facsimile or electronic transmission shall be as effective
as delivery of a manually signed counterpart of this Consent and Amendment.

 

[SIGNATURE PAGES FOLLOW]

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Consent and Amendment to be duly executed by their respective authorized officers as of the
day and year first above written.

 

	 	BORROWER:
	 	 
	 	TOWER AUTOMOTIVE HOLDINGS USA, LLC
	 	 
	 	By:	/s/ Jeffrey L. Kersten
	 	 	Name: Jeffrey L. Kersten
	 	 	Title: Vice President

 

	 	GUARANTORS:
	 	 
	 	TOWER INTERNATIONAL, INC. (formerly known as Tower Automotive, LLC)
	 	 
	 	By:	/s/ Jeffrey L. Kersten
	 	 	Name: Jeffrey L. Kersten
	 	 	Title: EVP and CFO

 

	 	TOWER AUTOMOTIVE HOLDINGS I, LLC
	 	 
	 	By:	/s/ Jeffrey L. Kersten
	 	 	Name: Jeffrey L. Kersten
	 	 	Title: Vice President

 

	 	TOWER AUTOMOTIVE HOLDINGS II(a), LLC
	 	 
	 	By:	/s/ Jeffrey L. Kersten
	 	 	Name: Jeffrey L. Kersten
	 	 	Title: Vice President

  

[Signature Page to Consent and Amendment—Term
Loan]

 

    

     

    

 

	 	TOWER AUTOMOTIVE OPERATIONS USA I, LLC
	 	 
	 	By:	/s/ Jeffrey L. Kersten
	 	 	Name: Jeffrey L. Kersten
	 	 	Title: VP and CFO

 

	 	TA HOLDINGS FINANCE, INC.
	 	 
	 	By:	/s/ Jeffrey L. Kersten
	 	 	Name: Jeffrey L. Kersten
	 	 	Title: Vice President

 

[Signature Page to Consent and Amendment—Term
Loan]

 

    

     

    

 

	 	citibank, n.a., as Agent 
	 	 
	 	By	/s/ Matthew Burke
	 	 	Name: Matthew Burke
	 	 	Title: Managing Director & Vice President

 

[Signature Page to Consent and Amendment—Term
Loan]

 

    

     

    

 

[Lender signature pages on file with
Agent]Exhibit

FIRST AMENDMENT TO 
LOAN AND SECURITY AGREEMENT
THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of December 17, 2018, to the Loan and Security Agreement, dated as of December 1, 2017 (as amended, restated, supplemented, or otherwise modified from time to time, the “Loan Agreement”), among CAC WAREHOUSE FUNDING LLC VII, a Delaware limited liability company (the “Borrower”), CREDIT ACCEPTANCE CORPORATION, a Michigan corporation (“Credit Acceptance”, the “Originator”, the “Servicer”, or the “Custodian”), the persons from time to time party thereto as LENDERS, the persons from time to time party thereto as MANAGING AGENTS, CREDIT SUISSE AG, NEW YORK BRANCH, as deal agent (in such capacity, together with its successors and assigns, the “Deal Agent”), and WELLS FARGO BANK, NATIONAL ASSOCIATION, as the collateral agent (in such capacity, the “Collateral Agent”) and acknowledged by WELLS FARGO BANK, NATIONAL ASSOCIATION, as the backup servicer (in such capacity, the “Backup Servicer”).  Unless defined elsewhere herein, capitalized terms used in this Amendment shall have the meanings assigned to such terms in the Loan Agreement.
RECITALS
WHEREAS, the Borrower, the Servicer, the Custodian, the Lenders, the Managing Agents, the Deal Agent, the Collateral Agent, and the Backup Servicer are parties to the Loan Agreement; and
WHEREAS, the Borrower and the Servicer have requested that the Deal Agent, the Managing Agents and the Lenders amend the Loan Agreement as specified herein and, subject to the terms and conditions hereof, the Deal Agent, the Managing Agents and the Lenders are willing to amend the Loan Agreement as specified herein.
NOW THEREFORE, in consideration of the mutual execution hereof and other good and valuable consideration, the parties hereto agree as follows: 
1.    Amendments to Definitions Appearing in Section 1.1 of the Loan Agreement.
(a)    The following new definitions are hereby inserted in appropriate alphabetical order:
“Beneficial Ownership Certificate”: A certificate regarding beneficial ownership as required by the Beneficial Ownership Regulation, in substantially the form prescribed in the Beneficial Ownership Regulation.

“Beneficial Ownership Regulation”: 31 C.F.R. § 1010.230.
“First Amendment Effective Date”: December 17, 2018.
(b)    The definition of “Class A Net Advance Rate” is hereby deleted and replaced with the following:
“Class A Net Advance Rate”: 80%; provided, that if, on any Payment Date, the Three Month Weighted Average Customer Node for such Payment Date is higher than 2.6 and the Three Month Weighted Average Original Term to Maturity for such Payment Date is less than 50 months, then the “Class A Net Advance Rate” shall be reduced to 70% and shall continue to be 70% until such time (if any) as the Three Month Weighted Average Customer Node for any Payment Date is equal to or lower than 2.6 or the Three Month Weighted Average Original Term to Maturity for the same Payment Date is equal to or greater than 50 months, at which time the “Class A Net Advance Rate” shall increase to 80% (until such time, if any, as the “Class A Net Advance Rate” is again reduced in accordance with the terms of this definition).
(c)    The definition of “Commitment Termination Date” is hereby amended by deleting the date “December 1, 2019” appearing therein and replacing it with “December 17, 2020”.
(d)    The definition of “Hedge Counterparty” is hereby deleted and replaced with the following:
“Hedge Counterparty”: Any entity that enters into a Hedging Agreement that (i) consents to the assignment of the Borrower’s rights under the Hedging Agreement to the Collateral Agent pursuant to Section 2.2(a), (ii) at the time such entity enters into the Hedging Agreement, is satisfactory in all respects to the Deal Agent and (iii) at the time such entity enters into the Hedging Agreement, unless otherwise agreed to by the Deal Agent or unless the Hedge Counterparty is the Deal Agent or an Affiliate thereof, has a long-term unsecured debt rating of not less than “A” by S&P and not less than “A2” by Moody’s (“Long-term Rating Requirement”) and a short-term unsecured debt rating of not less than “A-1” by S&P and not less than “P-1” by Moody’s (“Short-term Rating Requirement”).
2.    Amendment to Article I of the Loan Agreement.  The following Section 1.5 is hereby inserted at the end of Article I of the Loan Agreement:
Section 1.5.    Reclassification and Combination of Class A Revolving Loans and Class B Revolving Loans.  Effective as of the First Amendment Effective Date (until such time (if 

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any) as the parties hereto otherwise agree in writing following the First Amendment Effective Date), the parties hereto hereby agree as follows (notwithstanding anything to the contrary contained in this Agreement):
(i)    all outstanding Class B Revolving Loans made (or maintained) by the Class B Lenders in the Credit Suisse Class B Lender Group are hereby reclassified as, and combined with and into, the outstanding Class A Loans made (or maintained) by the Class A Lenders in the Credit Suisse Class A Lender Group, such that after giving effect thereto, the outstanding Class A Loans made (or maintained) by the Class A Lenders in the Credit Suisse Class A Lender Group shall be, as of the First Amendment Effective Date, $0.00;
(ii)    the Commitment of the Committed Lender in the Credit Suisse Class A Lender Group is hereby increased to $150,000,000, the Commitment of the Committed Lender in the Credit Suisse Class B Lender Group is hereby reduced to zero and the Net Advance Rate is reduced to 0%;
(iii)    the Borrower has no further right to request Class B Loans, and no Class B Lender has any obligation to make or maintain Class B Loans;
(iv)    all unpaid Class B Unused Fees, unpaid Class B Program Fees and all unpaid Interest accrued prior to the First Amendment Effective Date, in each case payable to Credit Suisse, as a Class B Managing Agent, shall be distributed to Credit Suisse, as a Class A Managing Agent, on the first Payment Date following the month in which the First Amendment Effective Date occurs;
(v)    except as otherwise contemplated in any of clauses (i)-(iv) above, all provisions of this Agreement and the other Transaction Documents, to the extent (but only to the extent) those provisions relate to or apply to the “Class B Borrowing Base,” “Class B Commitments,” “Class B Lenders,” “Class B Lender Groups,” “Class B Managing Agents,” “Class B Program Fees,” “Class B Revolving Loans,” “Class B Unused Fees” or “Interest” with respect to Class B Revolving Loans (or are otherwise used or applied to, or with respect to, Class B Loans or Class B Lenders), shall be disregarded; provided, that all indemnities hereunder or under any other Transaction Document with respect to any action taken (or any failure to act) or the occurrence of any event, in each case prior to the First Amendment Effective Date, shall continue to apply in accordance with their terms.
3.    Amendment to Section 3.2 of the Loan Agreement.  Subsection (m) of Section 3.2 of the Loan Agreement is hereby deleted and replaced with the following:
(m)    [reserved]

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4.    Amendments to Section 5.2 of the Loan Agreement.
(a)    The first sentence of Section 5.2(c) of the Loan Agreement is hereby deleted and replaced with the following:
The Borrower will not sell, pledge, assign or transfer (including by dividing into more than one limited liability company) to any other Person, or grant, create, incur, assume or suffer to exist any Lien (other than the Lien described in Section 4.2(a)(iii)) on any Loan, Contract, Related Security or any other Collateral, whether now existing or hereafter transferred hereunder, or any interest therein, and the Borrower will not sell, pledge, assign or suffer to exist any Lien on its interest, if any, hereunder.
(b)    Subsection (d) of Section 5.2 of the Loan Agreement is hereby deleted and replaced with the following:
(d)  Mergers, Acquisitions, Sales, etc.  The Borrower will not be a party to any merger or consolidation, or purchase or otherwise acquire all or substantially all of the assets or any stock of any class of, or any partnership or joint venture interest in, any other Person, or, sell, transfer (including by dividing into more than one limited liability company), convey or lease all or any substantial part of its assets, or sell or assign with or without recourse any Loan, Contract, Related Security or other Collateral or any interest therein (other than pursuant to and in accordance with the Transaction Documents).
(c)    Subsection (n)(iii) of Section 5.2 of the Loan Agreement is hereby deleted and replaced with the following:
(iii) merge into or consolidate with any Person or dissolve, terminate or liquidate in whole or in part, transfer (including by dividing into more than one limited liability company) or otherwise dispose of all or substantially all of its assets or change its legal structure, without in each case first obtaining the consent of the Deal Agent (acting at the direction, or with the consent, of the Required Lenders);
5.    Amendment to Section 5.3 of the Loan Agreement.  The second sentence of Section 5.3 of the Loan Agreement is hereby deleted and replaced with the following:
With respect to any Hedge Counterparty which is not the Deal Agent or an Affiliate thereof, in the event that Moody’s or S&P reduces such Hedge Counterparty’s long term unsecured debt rating below the Long-term Rating Requirement, or reduces such Hedge Counterparty’s short term unsecured debt rating below the Short-term Rating Requirement specified in the related Hedging Agreement, the Borrower shall effect the replacement of such Hedge 

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Counterparty with a counterparty meeting the definition of “Hedge Counterparty” not later than 30 calendar days following such rating reduction unless otherwise consented to in writing by the Deal Agent.
6.    Amendment to Section 13.2 of the Loan Agreement.  The last sentence of Section 13.2 of the Loan Agreement is hereby deleted. 
7.    Amendment to Schedule VI of the Loan Agreement.  Schedule VI to the Loan Agreement is hereby deleted and replaced with Schedule VI attached hereto. 
8.    Conditions Precedent to Effectiveness.  The effectiveness of this Amendment (the “Effective Date”) is subject to the conditions precedent that the Deal Agent and each Managing Agent shall have received: 
(a)        counterparts of (i) this Amendment and (ii) the Amended and Restated Fee Letter, in each case duly executed by each of the respective parties thereto;
(b)        a copy of the Beneficial Ownership Certificate duly executed by the Borrower, in form and substance reasonably satisfactory to the Deal Agent and each of the Managing Agents; and
(c)    payment of all fees and expenses required to be paid on such date pursuant to the Amended and Restated Fee Letter.
9.    Representations and Warranties.  In order to induce the Deal Agent and each of the Managing Agents to execute, deliver and perform this Amendment, each of Borrower and Servicer hereby represents and warrants that before and after giving effect to this Amendment:
(a)     each of its representations and warranties set forth in Article IV of the Loan Agreement is true and correct in all material respects on and as of the date hereof (except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties are true and correct in all material respects as of such earlier date); provided, that the preceding materiality standard shall not apply to those representations and warranties which themselves contain materiality standards; and
(b)     on the date hereof, no Amortization Event, Unmatured Termination Event, Termination Event, Servicer Termination Event, or Potential Servicer Termination Event has occurred and is continuing (either before or after giving effect to this Amendment).

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10.    Loan Agreement in Full Force and Effect, as Amended.   All the terms and conditions of the Loan Agreement shall remain in full force and effect, as amended by this Amendment. All references to the Loan Agreement in any other document or instrument shall be deemed to mean the Loan Agreement, as amended by this Amendment.  This Amendment shall not constitute a novation of the Loan Agreement, but shall constitute an amendment thereto. The parties hereto agree to be bound by the terms and obligations of the Loan Agreement, as amended by this Amendment. 
11.    Governing Law; Consent to Jurisdiction; Waiver of Objection to Venue.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  EACH OF THE PARTIES HERETO HEREBY AGREES TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL COURT LOCATED WITHIN THE STATE OF NEW YORK. EACH OF THE PARTIES HERETO AND EACH SECURED PARTY HEREBY WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT.
12.    Execution in Counterparts; Severability; Integration.  This Amendment may be executed in any number of counterparts (including by way of facsimile or electronic transmission) and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement.  In case any provision in or obligation under this Amendment shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. The Loan Agreement, as amended by this Amendment, and any agreements or letters (including fee letters) executed in connection herewith contain the final and complete integration of all prior expressions by the parties hereto with respect to the subject matter hereof and shall constitute the entire agreement among the parties hereto with respect to the subject matter hereof, superseding all prior oral or written understandings.
13.    Fees and Expenses.  The Borrower hereby confirms its agreement to pay on demand all reasonable, properly documented costs and expenses of the Deal Agent in connection with the preparation, execution and delivery of this Amendment and any of the other instruments, documents and agreements to be executed and/or delivered in connection herewith, including, without limitation, the reasonable fees and expenses of outside legal counsel to the Deal Agent with respect thereto.

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14.    Direction to Collateral Agent.  Pursuant to Section 13.1 of the Loan Agreement, the Deal Agent hereby directs the Collateral Agent to execute this Amendment.
[Signature pages follow]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by their duly authorized officers as of the date hereof.

CAC WAREHOUSE FUNDING LLC VII, as Borrower
By:  /s/ Douglas W. Busk
  Name: Douglas W. Busk
  Title: Treasurer
CREDIT ACCEPTANCE CORPORATION, as Servicer
By:  /s/ Douglas W. Busk
  Name: Douglas W. Busk
  Title: Senior Vice President and Treasurer

 

[Signature Page to First Amendment to CAC Loan and Security Agreement]

CREDIT SUISSE AG, NEW YORK BRANCH,  
as a Managing Agent

By: /s/ Michael Eaton
Name: Michael Eaton
Title: Vice President

By: /s/ Jeffrey Traola
Name: Jeffrey Traola
Title: Director

GIFS CAPITAL COMPANY, LLC, 
as a Conduit Lender 

By: /s/ R. Scott Chisholm
Name: R. Scott Chisholm
Title: Authorized Signer

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a Committed Lender

By: /s/ Michael Eaton
Name: Michael Eaton
Title: Authorized Signatory

By: /s/ Jeffrey Traola
Name: Jeffrey Traola
Title: Authorized Signatory

[Signature Page to First Amendment to CAC Loan and Security Agreement]

CREDIT SUISSE AG, NEW YORK BRANCH,  
as Deal Agent

By: /s/ Michael Eaton
Name: Michael Eaton
Title: Vice President

By: /s/ Jeffrey Traola
Name: Jeffrey Traola
Title: Director

[Signature Page to First Amendment to CAC Loan and Security Agreement]

CREDIT SUISSE INTERNATIONAL,  
as Hedge Counterparty

By: /s/ Erica L. Hryniuk
Name: Erica L. Hryniuk
Title: Authorized Signatory

By: /s/ Bik Kwan Chung
Name: Bik Kwan Chung
Title: Authorized Signatory

[Signature Page to First Amendment to CAC Loan and Security Agreement]

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent

By: /s/ Kristen L. Puttin
Name: Kristen L. Puttin
Title: Vice President

[Signature Page to First Amendment to CAC Loan and Security Agreement]

Acknowledged:

WELLS FARGO BANK, NATIONAL ASSOCIATION, as Backup Servicer

By: /s/ Kristen L. Puttin
Name: Kristen L. Puttin
Title: Vice President

[Signature Page to First Amendment to CAC Loan and Security Agreement]

SCHEDULE VI
LENDER GROUP INFORMATION
	
								
	Class A Lenders and Class A Lender Groups

	 

	Lender Group
	Managing Agent
	Conduit Lender(s)
	Conduit Lender Lending Limit

	Committed Lender(s)
	Commitment(s)
	Notice Information
	Wire Information

	Credit Suisse (Class A)
	Credit Suisse AG, New York Branch

	GIFS Capital Company, LLC
	$150,000,000
	Credit Suisse AG, Cayman Islands Branch
	$150,000,000
	chioperations@guggenheimpartners.com 
mark.matthews@Guggenheimpartners.com 
list.afconduitreports@credit-suisse.com 
abcp.monitoring@credit-suisse.com 
list.ib-opsla-ral@credit-suisse.com 
kenneth.aiani@credit-suisse.com
	Bank of New York ABA #:  021-000-018 
Account Name: Alpine Securitization LTD. 
Account No.:  890-13-34871

	Class B Lenders and Class B Lender Groups

	 

	Lender Group
	Managing Agent
	Conduit Lender(s)
	Conduit Lender Lending Limit
	Committed Lender(s)

	Commitment(s)
	Notice Information
	Wire Information

	Credit Suisse (Class B)
	Credit Suisse AG, New York Branch
	GIFS Capital Company, LLC
	$0
	Credit Suisse AG, Cayman Islands Branch
	$0
	chioperations@guggenheimpartners.com 
mark.matthews@Guggenheimpartners.com 
list.afconduitreports@credit-suisse.com 
abcp.monitoring@credit-suisse.com 
list.ib-opsla-ral@credit-suisse.com 
kenneth.aiani@credit-suisse.com
	Bank of New York ABA #:  021-000-018 
Account Name: Alpine Securitization LTD. 
Account No.:  890-13-34871

Sch. VI-1

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