Document:

exv4wfw136

“Exhibit 4(f)(136)”

Execution Copy

SECOND AMENDED AND RESTATED

CONTRIBUTION AGREEMENT

     This SECOND AMENDED AND RESTATED CONTRIBUTION AGREEMENT, dated as of June 16, 2010 (the
“Agreement”), is made between CREDIT ACCEPTANCE CORPORATION, a Michigan corporation
(“CAC”) and CAC WAREHOUSE FUNDING CORPORATION II, a Nevada corporation (“Funding”).

     CAC and Funding entered into a First Amended and Restated Contribution Agreement dated as of
August 31, 2007, and desire to amend such First Amended and Restated Contribution Agreement in its
entirety as provided herein.

     Funding desires to acquire from time to time certain Loans and related rights and collateral,
including certain of CAC’s rights in any related Dealer Agreements and Purchase Agreements, all of
the related Contracts, and the Collections (other than Dealer Collections) derived therefrom during
the full term of this Agreement, and CAC desires to transfer, convey and assign from time to time
such Loans and related property to Funding upon the terms and conditions hereinafter set forth.
CAC has also agreed to service the Loans and related property to be transferred, conveyed and
assigned to Funding.

     In consideration of the premises and the mutual agreements set forth herein, it is hereby
agreed by and between CAC and Funding as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Definitions. All capitalized terms used herein shall have the meanings
specified herein or, if not so specified, the meaning specified in, or incorporated by reference
into the Loan and Security Agreement and shall include in the singular number the plural and in the
plural number the singular:

     “Conveyed Property” means the Initial Contributed Property and the Subsequent Conveyed
Property.

     “Initial Contributed Property” means (i) Loans listed on Exhibit A hereto delivered to
the Servicer, the Collateral Agent and the Backup Servicer on the Initial Funding Date and (ii) all
Related Security with respect thereto.

     “Initial Funding Date” means September 30, 2003.

     “Loan and Security Agreement” shall mean the Fourth Amended and Restated Loan and
Security Agreement dated as of June 16, 2010 among Funding, CAC, the Investors named therein, the
CP Conduits named therein, Wells Fargo Securities, LLC, as the Deal Agent, Wells Fargo Bank,
National Association as the Liquidity Agent, the other Liquidity Agents named therein, and Wells
Fargo Bank, National Association as the Backup Servicer and the Collateral Agent, as such agreement
may be amended, modified or supplemented from time to time.

 

 

     “Related Security” With respect to any Loan all of CAC’s interest in:

          (i) the Dealer Agreements (other than Excluded Dealer Agreement Rights, but including CAC’s
rights to service the Loans and the related Contracts and receive the related collection fee and
receive reimbursement of certain recovery expenses, in accordance with the terms of the Dealer
Agreements) and Contracts securing payment of such Loan;

          (ii) all security interests or liens purporting to secure payment of such Loan, whether
pursuant to such Loan, the related Dealer Agreement or otherwise, together with all financing
statements signed by the related Obligor describing any collateral securing such Loan and all other
property obtained upon foreclosure of any security interest securing payment of such Loan or any
related Contract;

          (iii) all guarantees, insurance (including insurance insuring the priority of perfection of
any lien) or other agreements or arrangements of any kind from time to time supporting or securing
payment of each Contract whether pursuant to such Contract or otherwise; including any of the
foregoing relating to any Contract securing payment of such Loan;

          (iv) all of CAC’s interests in all Records, documents and writing evidencing or related to
such Loan;

          (v) all Collections (other than Dealer Collections), the Collection Account, the Reserve
Account, and all amounts on deposit therein and investments thereof; and

          (vi) the Proceeds of each of the foregoing.

For the avoidance of doubt, the term “Related Security” with respect to any Dealer Loan includes
all rights arising after the end of the Revolving Period under such Dealer Loan which rights are
attributable to advances made under such Dealer Loan as the result of Contracts being added after
the last date of the last full Collection Period during the Revolving Period to the identifiable
group of Dealer Loan Contracts to which such Loan relates.

     “Subsequent Conveyed Property” means, with respect to the date of any Incremental
Funding, (i) the Loans added to Exhibit A hereto as of the date of such Incremental Funding and
(ii) all Related Security with respect thereto.

     Section 1.2 Other Terms. All accounting terms not specifically defined herein shall
be construed in accordance with GAAP. All terms used in Article 9 of the UCC, and not specifically
defined herein, are used herein as defined in such Article 9.

     Section 1.3 Computation of Time Periods. Unless otherwise stated in this Agreement,
in the computation of a period of time from a specified date to a later specified date, the word
“from” means “from and including” and the words “to” and “until” each means “to but excluding.”

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ARTICLE II

CONTRIBUTION AND SERVICING OF LOANS

     Section 2.1 Contribution and Sale of Loans.

     (a) In consideration of the payments described in Section 3.1, effective as of the Initial
Funding Date, CAC did convey, assign, sell and transfer without recourse, except as set forth
herein, to Funding all of its right, title and interest in and to the Initial Contributed Property.

     (b) CAC hereby further agrees that on the date of each Incremental Funding during the
Revolving Period, in consideration of the payment described in Section 3.1 with respect to the date
of such Incremental Funding, CAC shall and CAC does hereby agree to, convey, assign, sell and
transfer without recourse, except as set forth in this Agreement, to Funding all of its right,
title and interest in and to the Subsequent Conveyed Property with respect to the date of such
Incremental Funding.

     (c) CAC hereby further agrees that the above-described conveyances shall, without the need for
any further action on the part of CAC or Funding, include all rights arising after the end of the
Revolving Period under any Dealer Loan included in the Initial Contributed Property or Subsequent
Conveyed Property which rights are attributable to advances made under such Loans as the result of
Dealer Loan Contracts being added after the last day of the last full Collection Period during the
Revolving Period to the identifiable group of Dealer Loan Contracts to which such Dealer Loan
relates.

     (d) Each such contribution, sale, assignment, transfer and conveyance does not constitute an
assumption by Funding of any obligations of CAC or any other Person to Obligors or to any other
Person in connection with the Loans or under any Contract, Dealer Agreement, Purchase Agreement or
other agreement and instrument relating to the Loans.

     (e) In connection with any such foregoing conveyance, CAC agrees to record and file on or
prior to the Initial Funding Date, at its own expense, a financing statement or statements with
respect to the Conveyed Property conveyed by CAC hereunder meeting the requirements of applicable
state law in such manner and in such jurisdictions as are necessary to perfect the interests of
Funding created hereby, and to deliver either the originals of such financing statements or a
file-stamped copy of such financing statements or other evidence of such filings to Funding on or
before the Initial Funding Date.

     (f) CAC agrees that from time to time, at its expense, it will promptly execute and deliver
all instruments and documents and take all actions as may be necessary or as Funding may reasonably
request in order to perfect or protect the interest of Funding in the Loans and other Conveyed
Property purchased hereunder or to enable Funding to exercise or enforce any of its rights
hereunder. CAC shall, upon request of Funding, obtain such additional search reports as Funding
shall request. To the fullest extent permitted by applicable law, Funding shall be authorized and
permitted to file continuation statements and amendments to financing statements

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and assignments thereof to preserve and protect its right, title and interest in, to and under
the Conveyed Property.

     (g) It is the express intent of CAC and Funding that the conveyance of the Loans and other
Conveyed Property by CAC to Funding pursuant to this Agreement be construed as a absolute sale and
contribution of such Loans and other Conveyed Property by CAC to Funding and that CAC relinquishes
all title and control over the Loans upon the transfer of each such Loan under this Agreement
(except to the extent CAC acts as the Servicer of the Loans). Further, it is not the intention of
CAC and Funding that such conveyance be deemed a grant of a security interest in the Loans and
other Conveyed Property by CAC to Funding in the nature of a consensual lien securing an
obligation. However, in the event that, notwithstanding the express intent of the parties, the
Loans and other Conveyed Property are construed to constitute property of CAC, then (i) this
Agreement also shall be deemed to be, and hereby is, a security agreement within the meaning of the
UCC as enacted in the State of New York; and (ii) the conveyance by CAC provided for in this
Agreement shall be deemed to be, and CAC hereby grants to Funding, a security interest in, to and
under all of CAC’s right, title and interest in, to and under the Conveyed Property, to secure the
rights of Funding set forth in this Agreement or as may be determined in connection therewith by
applicable law. CAC and Funding shall, to the extent consistent with this Agreement, take such
actions as may be necessary to ensure that, if this Agreement were deemed to create a security
interest in the Loans and other Conveyed Property, such security interest would be a perfected
security interest in favor of Funding under applicable law and will be maintained as such
throughout the term of this Agreement.

     (h) In connection with such conveyance, CAC agrees to deliver to Funding on the Initial
Funding Date, one or more computer files or microfiche lists containing true and complete lists of
all applicable Dealer Agreements and Loans conveyed to Funding on the Initial Funding Date, and all
Contracts securing all such Loans, identified by, as applicable, account number, dealer number and
pool number. Such file or list shall be marked as Exhibit A to this Agreement, shall be delivered
to Funding as confidential and proprietary, and is hereby incorporated into and made a part of this
Agreement. Such list and such Exhibit A shall be supplemented and updated by lists delivered by
CAC to Funding on the date of each Incremental Funding in the Revolving Period describing all
Conveyed Property conveyed on the date of each such Incremental Funding so that, on each such date,
Funding will have an aggregate list constituting Exhibit A that describes all Loans conveyed by CAC
to Funding hereunder on or prior to said date of Incremental Funding, any related Dealer
Agreements, Purchase Agreements and all Contracts relating to such Loans.

     (i) CAC will reflect the transactions described in paragraph (a) of this Section 2.1 on its
internal non-consolidated financial statements and on its non-consolidated state tax returns as a
sale or other absolute transfer of the Loans from CAC to Funding, even though CAC will reflect this
transaction on its consolidated financial statements as an “on-balance sheet” item in accordance
with generally accepted accounting principles. CAC will present the data in its consolidated
financial statements with an accompanying footnote describing Funding’s separate existence and
stating that such item is a financing secured by the Loans and is non-recourse to CAC.

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     Section 2.2 Servicing of Loans. The servicing, administering and collection of the
Loans shall be conducted by the Servicer, which hereby agrees to perform, take or cause to be taken
all such action as may be necessary or advisable to collect each Loan from time to time, all in
accordance with applicable laws, rules and regulations and with the care and diligence which the
Servicer employs in servicing similar loans for its own account, in accordance with the Credit
Guidelines and the Collection Guidelines. Funding hereby appoints the Servicer as its agent to
enforce Funding’s and any Assignee’s rights and interests in, to and under the Loans, the Related
Security, the Collections, and the other Conveyed Property. The Servicer shall hold in trust for
Funding and any Assignees, in accordance with its interests, all Records which evidence or relate
to the Loans, Related Security, Collections and other Conveyed Property.

ARTICLE III

CONSIDERATION AND PAYMENT; LOANS

     Section 3.1 Consideration. The consideration for the Loans and other Conveyed
Property conveyed on the Initial Funding Date to Funding by CAC under this Agreement shall be an
amount equal to (i) the net cash proceeds of each advance to Funding under the Loan and Security
Agreement used by Funding to purchase the Loans and other Conveyed Property conveyed on the Initial
Funding Date, plus (ii) the value attributable to CAC’s common stock in Funding (which
constitutes and will constitute all of the equity interests issued by Funding) as a result of the
coveyance of such Loans and other Conveyed Property. Thereafter, on the date of each Incremental
Funding in the Revolving Period, the consideration for the Loans and other Conveyed Property
conveyed on the date of such Incremental Funding will equal the Outstanding Balance of the Loans
conveyed less the Loan Loss Reserve in each case as in effect as of the date of such Incremental
Funding. Such consideration shall be payable (i) in cash in the amount of the net cash proceeds of
each Incremental Funding under the Loan and Security Agreement used by Funding to purchase the
Loans and other Conveyed Property conveyed on the date of such Incremental Funding, plus
(ii) an increase in the value attributable to CAC’s common stock in Funding (which constitutes and
will constitute all of the equity interests issued by Funding) as a result of the coveyance of such
Loans and other Conveyed Property.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     Section 4.1 Representations and Warranties. CAC represents and warrants to Funding as
of the Closing Date, the Initial Funding Date and the date of each Incremental Funding during the
Revolving Period, that:

     (a) Organization and Good Standing. CAC is duly organized and is validly existing as
a corporation in good standing under the laws of the State of Michigan, with power and authority to
own its properties and to conduct its business as such properties are currently owned and such
business is presently conducted, and has and had at all relevant times, full power, authority, and
legal right to acquire, own, sell, and service the Loans and the related Contracts, and to perform
its obligations under the Transaction Documents.

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     (b) Due Qualification. CAC is duly qualified to do business as a foreign corporation
in good standing, and has obtained all necessary licenses and approvals in all jurisdictions in
which the ownership or lease of property or the conduct of its business, including the servicing of
the Loans and the related Contracts as required by this Agreement, requires such qualifications
except where such failure will not have a Material Adverse Effect.

     (c) Power and Authority. CAC has the power and authority to execute and deliver this
Agreement and the other Transaction Documents to which it is a party and to carry out their
respective terms; and the execution, delivery, and performance of this Agreement and the other
Transaction Documents to which it is a party have been duly authorized by CAC by all necessary
corporate action.

     (d) Valid Sale; Binding Obligations. This Agreement evidences a valid sale, transfer,
and assignment of the Conveyed Property enforceable against creditors of and purchasers from CAC;
and this Agreement and the other Transaction Documents to which CAC is a party constitute legal,
valid and binding obligations of CAC enforceable in accordance with their terms, subject to the
effects of bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement
of creditors’ or secured creditors’ rights generally and to general principles of equity.

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the other Transaction Documents to which it is a party and the fulfillment of the terms hereof
and thereof do not conflict with, result in any breach of any of the terms and provisions of, or
constitute (with or without notice or lapse of time) a default under, the Articles of Incorporation
or by-laws of CAC, or any indenture, agreement, or other instrument to which CAC is a party or by
which it is or may be bound; nor result in the creation or imposition of any Lien upon any of its
properties pursuant to the terms of any such indenture, agreement (other than this Agreement), or
other instrument; or violate any law or, to the best of CAC’s knowledge, any order, rule, or
regulation applicable to CAC of any court or of any federal or state regulatory body,
administrative agency, or other governmental instrumentality having jurisdiction over CAC or its
properties.

     (f) No Proceedings. There are no proceedings or investigations pending, or to CAC’s
best knowledge threatened, before any court, regulatory body, administrative agency, or other
governmental instrumentality having jurisdiction over CAC or its properties: A) asserting the
invalidity of this Agreement or any other Transaction Document to which it is a party; B) seeking
to prevent the consummation of any of the transactions contemplated by this Agreement or any other
Transaction Document to which it is a party; or C) seeking any determination or ruling that might
materially and adversely affect the performance by CAC of its obligations under, or the validity or
enforceability of, this Agreement, or any other Transaction Document to which it is a party.

     (g) Solvency; Fraudulent Conveyance. CAC is solvent, is able to pay its debts as they
become due and will not be rendered insolvent by the transactions contemplated by the Transaction
Documents and, after giving effect thereto, will not be left with an unreasonably

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small amount of capital with which to engage in its business. CAC does not intend to incur,
nor does it believe that it has incurred, debts beyond its ability to pay such debts as they
mature. CAC does not contemplate the commencement of insolvency, bankruptcy, liquidation or
consolidation proceedings or the appointment of a receiver, liquidator, conservator, trustee or
similar official or any of its assets. The amount of consideration being received by CAC upon the
sale or other absolute transfer of the Conveyed Property to Funding constitutes reasonably
equivalent value and fair consideration for the Conveyed Property. CAC is not transfering the
Conveyed Property to Funding with any intent to hinder, delay or defraud any of its creditors.

     (h) Security Interest. As of the Initial Funding Date, CAC has granted a security
interest (as defined in the UCC as enacted in the State of Michigan) to Funding in the Conveyed
Property, which is enforceable in accordance with Applicable Law upon the Initial Funding Date.
Upon the filing of UCC-1 financing statements naming Funding as secured party and CAC as debtor,
Funding shall have a first priority perfected security interest in the Conveyed Property. All
filings (including, without limitation, UCC filings) as are necessary in any jurisdiction to
perfect the interest of Funding in the Conveyed Property have been made.

     (i) Contribution Agreement. This Contribution Agreement is the only agreement
pursuant to which Funding purchases Loans from CAC.

     (j) Perfection. As of the Initial Funding Date, CAC will be the owner of all of the
Loans and the other Conveyed Property, free and clear of all Liens. On or prior to the date of
each contribution of Loans and the other Conveyed Property to Funding pursuant to this Agreement,
all financing statements and other documents required to be recorded or filed in order to perfect
and protect the ownership interest of Funding in and to the Loans and the other Conveyed Property
against all creditors of and purchasers from CAC will have been duly filed in each filing office
necessary for such purpose and all filing fees and taxes, if any, payable in connection with such
filings shall have been paid in full.

     (k) Accuracy of Information. All information with respect to the Loans and other
Conveyed Property provided to Funding hereunder by CAC was true and correct in all material
respects as of the date such information was provided to Funding and did not omit to state any
material facts necessary to make the statements contained therein not misleading.

     (l) Taxes. CAC has filed on or before their respective due dates, all tax returns
which are required to be filed in any jurisdiction or has obtained extensions for filing such tax
returns and has paid all taxes, assessments, fees and other governmental charges against CAC or any
of its properties, income or franchises, to the extent that such taxes have become due, other than
any taxes or assessments, the validity of which are being contested in good faith by appropriate
proceedings and with respect to which adequate provision has been made on the books of the Seller
as may be required by GAAP. To the best knowledge of CAC, all such tax returns were true and
correct in all material respects and CAC knows of any proposed material additional tax assessment
against it nor any basis therefor. Any taxes, assessments, fees and other governmental charges
payable by CAC in connection with the execution and delivery of the Transaction Documents have been
paid or shall have been paid at or prior to Closing Date.

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     (m) Place of Business. The principal place of business and chief executive office of
CAC is in Southfield, Michigan, and the office where CAC keeps all of its Records is at the address
listed in Section 8.3, or such other locations notified to Funding and the Deal Agent in accordance
with this Agreement in jurisdictions where all action required by the terms of this Agreement has
been taken and completed; provided that the Servicer may temporarily (or permanently, in the case
of a Contract that is repurchased, liquidated or paid in full) move or transfer to an agent of the
Servicer individual Contract Files or Records, or any portion thereof without notice as necessary
to allow the Servicer to conduct collection and other servicing activities in accordance with its
customary practices and procedures.

     (n) Good Title. Upon the contribution of the Loans and related property to Funding
pursuant to this Agreement, Funding shall acquire all of CAC’s ownership and other interest in each
Loan, and in the Related Security, Collections and proceeds with respect thereto, in each case free
and clear of any Lien.

     (o) Tradenames, Etc. As of the date hereof CAC has not, within the last five (5)
years, operated under any tradenames other than its corporate name, nor has it changed its name,
merged with or into or consolidated with any other corporation or been the subject of any
proceeding under Title 11, United States Code (Bankruptcy).

     (p) Nature of Loans, Contracts. Each Dealer Loan and Purchased Loan represented by
CAC to be an Eligible Dealer Loan or Eligible Purchased Loan, as applicable, or included in the
calculation of the Aggregate Outstanding Eligible Loan Balance, at the time of such representation,
or at the time of such calculation, as applicable, in fact satisfies the definition of “Eligible
Dealer Loan” or “Eligible Purchased Loan”, as applicable, set forth in the Loan and Security
Agreement. Each Dealer Loan Contract classified as an “Eligible Dealer Loan Contract” (or included
in any aggregation of balances of “Eligible Dealer Loan Contracts”) by CAC satisfies at the time of
such classification the definition of “Eligible Dealer Loan Contract” set forth in the Loan and
Security Agreement.

     (q) Amount of Loans. The Funding Notice shall provide (A) the aggregate Outstanding
Balance of the Contracts; (B) the Aggregate Outstanding Eligible Loan Balance; and (C) the
Aggregate Outstanding Eligible Loan Net Balance; each as of the Cut-off Date and as reported in the
Loan Servicing System.

     (r) Collections and Servicing. Since June 30, 2007, there has been no material
adverse change in the ability of the Servicer to service and collect the Loans.

     (s) Not an Investment Company. CAC is not, and is not controlled by, an “investment
company” within the meaning of the Investment Company Act of 1940, as amended, or each is exempt
from all provisions of such Act.

     (t) ERISA. CAC is in compliance in all material respects with the Employee Retirement
Income Security Act of 1974, as amended.

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     (u) Bulk Sales. No transaction contemplated by this Agreement requires compliance
with any bulk sales act or similar law.

     (v) Preference; Voidability. The transfer of the Loans, Collections, Related Security
and other Conveyed Property by CAC to Funding, has not been made for or on account of an antecedent
debt owed by Funding to CAC, or by CAC to Funding, and such transfer is not voidable under any
Section of the Bankruptcy Reform Act of 1978 (11 U.S.C. § § 101 et seq.), as amended.

     (w) No Consents. With respect to each Loan and the other Conveyed Property, all
consents, licenses, approvals or authorizations of or registrations or declarations with any
Governmental Authority required to be obtained, effected or given by CAC, in connection with the
pledge of such Conveyed Property to Funding have been duly obtained, effected or given and are in
full force and effect.

     (x) Exhibit A. Upon delivery, Exhibit A to this Agreement and each supplement or
addendum thereto will be an accurate and complete listing of all Loans and the related Contracts
and any related Dealer Agreements in all material respects on the date each such Loan was sold to
Funding hereunder, and the information contained therein is and will be true and correct in all
material respects as of such date.

     (y) Adverse Selection. No selection procedure believed by CAC to be adverse to the
interests of Funding has been or will be used in selecting the Loans or any Dealer Agreements.

     (z) Use of Proceeds. No proceeds of any sale of Conveyed Property will be used (i)
for a purpose that violates, or would be inconsistent with, Regulation T, U or X promulgated by the
Board of Governors of the Federal Reserve System from time to time or (ii) to acquire any security
in any transaction which is subject to Section 12, 13 or 14 of the Securities Exchange Act of 1934,
as amended.

     Section 4.2 Reaffirmation of Representations and Warranties by CAC; Notice of Breach.
The representations and warranties set forth in Section 4.1 shall survive the conveyance of the
Loans to Funding, and termination of the rights and obligations of Funding and CAC under this
Agreement. Upon discovery by Funding or CAC of a breach of any of the foregoing representations
and warranties, the party discovering such breach shall give prompt written notice to the other
within three Business Days of such discovery.

ARTICLE V

COVENANTS OF CAC

     Section 5.1 Affirmative Covenants. So long as this Agreement is in effect, and until
all Loans, which have been conveyed to Funding pursuant hereto, shall have been paid in full or
written-off as uncollectible, and all amounts owed by CAC pursuant to this Agreement have been paid
in full, unless Funding and the Agent otherwise consent in writing, CAC hereby covenants and agrees
as follows:

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     (a) Preservation of Corporate Existence; Conduct of Business. CAC will preserve and
maintain its existence, rights, franchises and privileges in the jurisdiction of its formation, and
qualify and remain qualified in good standing as a foreign corporation in each jurisdiction where
the failure to preserve and maintain such existence, rights, franchises, privileges and
qualification has had, or could reasonably be expected to have, a material adverse effect on the
Conveyed Property. CAC will carry on and conduct its business in substantially the same manner and
in substantially the same fields of enterprise as it is presently conducted and do all things
necessary to remain duly incorporated, validly existing and in good standing as a domestic
corporation in its jurisdiction of incorporation and CAC will maintain all requisite authority to
conduct its business in each jurisdiction in which its business is conducted.

     (b) Compliance with Laws. CAC will comply in all material respects with all
Applicable Laws.

     (c) Furnishing of Information and Inspection of Records. CAC will furnish to Funding
from time to time such information with respect to the Loans as Funding may reasonably request,
including, without limitation, listings identifying the Obligor and the Outstanding Balance for
each Loan. CAC will at any time and from time to time during regular business hours permit
Funding, or its agents or representatives, (i) to examine and make copies of and abstracts from all
Records and (ii) to visit the offices and properties of CAC for the purpose of examining such
Records, and to discuss matters relating to Loans or CAC’s performance hereunder with any of the
officers, directors, employees or independent public accountants of CAC having knowledge of such
matters.

     (d) Keeping of Records and Books of Account. CAC will maintain and implement
administrative and operating procedures (including without limitation, an ability to recreate
records evidencing the Loans and the Contracts in the event of the destruction of the originals
thereof), and keep and maintain all documents, books, records and other information reasonably
necessary or advisable for the collection of all Loans.

     (e) Performance and Compliance with Dealer Agreements and Purchase Agreements. CAC,
at its expense, will timely and fully perform and comply with all provisions, covenants and other
promises required to be observed by it under the Loans, Dealer Agreements, Purchase Agreements and
Contracts, and all other agreements related thereto in all material respects.

     (f) Credit and Collection Policies. As long as it is the Servicer, CAC will comply in
all material respects with the Credit Guidelines (as in effect on the Closing Date) and the
Collection Guidelines in regard to each Loan and any related Dealer Agreement.

     (g) Collections Received. CAC shall hold in trust, and deposit to the Collection
Account, not later than the close of business on the second Business Day following the Date of
receipt, all Collections received from time to time by CAC or the Servicer.

     (h) Sale Treatment. CAC agrees to treat the conveyance of the Conveyed Property made
pursuant to this Agreement for all purposes (including, without limitation, tax and financial

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accounting purposes) as an absolute contribution and, to the extent any such reporting is
required, shall report the transactions contemplated by this Agreement on all relevant books,
records, tax returns, financial statements and other applicable documents as a complete disposition
of the Contributed Party to Funding.

     (i) ERISA. CAC will promptly give Funding written notice upon becoming aware that CAC
is not in compliance in all material respects with ERISA or that any ERISA lien on any of the Loans
exists.

     (j) Preservation of Security Interest. CAC will file such financing and continuation
statements and any other documents that may be required by any law or regulation of any
Governmental Authority to preserve and perfect the security interest of Funding in, to and under
the Conveyed Property. CAC will maintain possession of the Dealer Agreements and the Contract
Files and Records, as custodian for the Collateral Agent, as set forth in Section 6.2(c) of the
Loan and Security Agreement. CAC, as Servicer, will comply with its covenants under Section 5.4(d)
of the Loan and Security Agreement.

     (k) Separateness. CAC will take such actions that are required on its part to be
performed to cause (i) Funding to be in compliance, at all relevant times, with Section 5.2(o) of
the Loan and Security Agreement, and (ii) all factual assumptions set forth in the most recent
opinion letters delivered by Dykema Gossett PLLC or Skadden, Arps, Slate, Meagher & Flom LLP to the
Collateral Agent with respect to certain bankruptcy matters to remain true at all relevant times.

     (l) Notice to Potential Purchasers. At all times before the termination of this
Agreement, if a third party, including a potential purchaser of the Loans, inquires, CAC will
promptly reply that (i) CAC has sold the Loans to Funding and (ii) Funding has granted a security
interest therein to the Collateral Agent for the benefit of the Lenders, and CAC will not claim any
ownership interest in the Loans.

     Section 5.2 Negative Covenants. During the term of this Agreement, unless Funding and
the Agent shall otherwise consent in writing:

     (a) No Sales, Liens, Etc. Except as otherwise provided herein, CAC will not sell,
assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any
Lien upon (or the filing of any financing statement) or with respect to (i) any of the Loans, the
Related Security, Collections or other Conveyed Property, (ii) any goods (other than inventory),
the sale, which may give rise to any Loan, Related Security or Collections or other Conveyed
Property or (iii) any account to which any Collections of any Loan are sent, or, in each case,
assign any right to receive income in respect thereof. CAC shall, and will cause each of its
Subsidiaries to, specifically exclude from the property subject to any Lien granted on inventory
any and all accounts receivable generated by sales of such inventory and the proceeds thereof and
shall provide, upon Funding’s request, evidence satisfactory to Funding that any such Lien (and
each related UCC financing statement or other related filing) expressly excludes any such

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accounts receivable. CAC will provide Funding and the Deal Agent with a copy of any inventory
financing agreement at least three Business Days prior to the effectiveness thereof.

     (b) No Extension or Amendment of Loans. CAC will not extend, amend or otherwise
modify the terms of any Loan, Dealer Agreement, Purchase Agreement or Contract except as permitted
by any other Transaction Document.

     (c) Credit Guidelines and Collection Guidelines. CAC will not amend, modify, restate
or replace, in whole or in part, the Credit Guidelines or Collection Guidelines, which change would
impair the collectibility of any Loan or Contract or otherwise adversely affect the interests or
the remedies of Funding under this Agreement or any other Transaction Document, unless such change
is permitted under the Loan and Security Agreement and unless CAC obtains the prior written consent
of Funding.

     (d) Change in Payment Instructions to Obligors. CAC will not make any change in its
instructions to Obligors regarding payments to be made directly or indirectly, unless such change
is permitted under the Loan and Security Agreement and Funding and CAC have each consented to such
change and have received duly executed documentation related thereto.

     (e) Change of Name, Etc. CAC will not change its name, identity, jurisdiction of
organization or structure or location of its chief executive office, unless at least ten (10) days
prior to the effective date of any such change CAC delivers to Funding and the Deal Agent such
documents, instruments or agreements, including, without limitation, appropriate financing
statements under the UCC, executed by CAC, as are necessary to reflect such change and to continue
the perfection of Funding’s and any assignee’s interest in the Loans.

     (f) Separate Business. CAC will not: (i) fail to maintain separate books, financial
statements, accounting records and other corporate documents from those of Funding; (ii) commingle
any of its assets or the assets of any of its Affiliates with those of Funding (except to the
extent that CAC acts as the Servicer of the Loans); (iii) pay from its own assets any obligation or
indebtedness of any kind incurred by Funding; (iv) directly, or through any of its Affiliates,
borrow funds or accept credit or guaranties from Funding.

     Section 5.3 Indemnities by CAC.

     (a) Without limiting any other rights that any such Person may have hereunder or under
Applicable Law, CAC hereby agrees to indemnify Funding, or its assignee, and each of their
respective Affiliates and officers, directors, employees and agents thereof (collectively, the
“Indemnified Parties”), forthwith on demand, from and against any and all damages, losses,
claims, liabilities and related costs and expenses, including attorneys’ fees and disbursements
(all of the foregoing being collectively referred to as the “Indemnified Amounts”) awarded
against or incurred by such Indemnified Party arising out of or as a result of this Agreement or in
respect of any Loan or any Contract, excluding, however, (a) Indemnified Amounts to
the extent resulting from gross negligence or willful misconduct on the part of such Indemnified
Party or (b) Indemnified Amounts that arise as a result of non-payment of Loans due to credit
problems of

12

 

the Dealers or Obligors. If CAC has made any indemnity payment pursuant to this Section
5.3 and such payment fully indemnified the recipient thereof and the recipient thereafter
collects any payments from others in respect of such Indemnified Amounts then, the recipient shall
repay to CAC an amount equal to the amount it has collected from others in respect of such
indemnified amounts. Without limiting the foregoing, CAC shall indemnify each Indemnified Party
for Indemnified Amounts relating to or resulting from:

          (i) any Contract or Loan treated as or represented by CAC to be an Eligible Contract or
Eligible Loan that is not at the applicable time an Eligible Contract or Eligible Loan;

          (ii) reliance on any representation or warranty made or deemed made by CAC or any of its
officers under or in connection with this Agreement, which shall have been false or incorrect in
any material respect when made or deemed made or delivered;

          (iii) the failure by CAC to comply with any term, provision or covenant contained in this
Agreement or any agreement executed in connection with this Agreement, or with any Applicable Law,
with respect to any Loan, Dealer Agreement, any Contract, or the nonconformity of any Loan, Dealer
Agreement, Purchase Agreement or Contract with any such Applicable Law;

          (iv) the failure to vest and maintain vested in Funding, or its assignees, a first priority
perfected security interest in the Conveyed Property, free and clear of any Lien;

          (v) the failure to file, or any delay in filing, financing statements or other similar
instruments or documents under the UCC of any applicable jurisdiction or other Applicable Laws with
respect to the Conveyed Property, whether on the Initial Funding Date or at any subsequent time;

          (vi) any dispute, claim, offset or defense (other than the discharge in bankruptcy of the
Dealer or Obligor) of the relevant Dealer or Obligor to the payment of any Loan or Contract
(including, without limitation, a defense based on such Loan or Contract not being a legal, valid
and binding obligation of such Obligor enforceable against it in accordance with its terms);

          (vii) any failure of CAC to perform its duties or obligations in accordance with the
provisions of this Agreement or any failure by CAC to perform its respective duties under the
Loans;

          (viii) the failure by CAC to pay when due any Taxes for which CAC is liable, including without
limitation, sales, excise or personal property taxes payable in connection with the Conveyed
Property;

          (ix) the commingling of Collections of the Loans and Contracts at any time with other funds
(except to the extent that CAC acts as the Servicer of the Loans);

13

 

          (x) (viii) any investigation, litigation or proceeding related to this Agreement or in
respect of any Loan or Contract;

          (xi) the failure of CAC, in its individual capacity, or any of its agents or representatives
to remit to the Servicer, the Deal Agent, or the Collateral Agent Collections of the Loans and
Contracts remitted to CAC, in its individual capacity, or any such agent or representative; and

          (xii) the failure of a Contract File to contain the relevant original Contract.

     Notwithstanding the foregoing, CAC shall have no indemnification obligation hereunder with
respect to any Loan or Contract in respect of which CAC shall have paid the Release Price under the
Loan and Security Agreement after the date of such payment.

     (b) Any amounts subject to the indemnification provisions of this Section 5.3 shall be paid by
CAC to the Indemnified Party within five (5) Business Days following the the Indemnified Party’s
demand therefor.

     (c) The obligations of CAC under this Section 5.3 shall survive the termination of this
Agreement.

ARTICLE VI

REPURCHASE OBLIGATION

     Section 6.1 Mandatory Repurchase upon Breach of Warranty. If any Loan, which has been
conveyed to Funding by CAC hereunder and which has been reported by CAC to be an Eligible Dealer
Loan or Eligible Purchased Loan, shall fail to meet the conditions set forth in the definition of
“Eligible Dealer Loan” or “Eligible Purchased Loan”, as applicable, on the date of such report or
for which any representation or warranty made herein in respect of such Loan shall fail to be true
on the date so made, CAC shall be deemed to have received on such day a Collection of such Loan in
full and shall on such day pay to Funding an amount equal to the Release Price of such Loan. If on
any day any Dealer Loan Contract, which has been conveyed to Funding by CAC hereunder and which has
been reported by CAC to be an Eligible Dealer Loan Contract, shall fail to meet the conditions set
forth in the definition of “Eligible Dealer Loan Contract” on the date of such report or for which
any representation or warranty made herein in respect of such Dealer Loan Contract shall fail to be
true on the date so made, CAC shall be deemed to have received on such day a Collection in the
amount of the Release Price of such Dealer Loan Contract and shall on such day pay to Funding an
amount equal to the Release Price of such Contract. For purposes of this Section 6.1, Release
Price shall be calculated as of the last day of the immediately preceding collection period. Upon
the request of CAC, Funding shall execute and deliver to CAC any assignments, termination
statements and any other releases and instruments as CAC may reasonably request in order to effect
and evidence the release of Funding’s security interest on the Loans and the Dealer Loan Contracts
for which payment has been made in accordance with this Section 6.1 and the transfer of such Loans
to CAC.

14

 

     Section 6.2 No Recourse. Except as otherwise provided in this Article VI, the
purchase and sale of the Loans under this Agreement shall be without recourse to CAC or the
Servicer.

ARTICLE VII

CONDITIONS PRECEDENT

     Section 7.1 Conditions to Funding’s Obligations Regarding Loans. Consummation of the
transactions contemplated hereby on the Closing Date, the Initial Funding Date and, where
applicable, on the date of each Incremental Funding, shall be subject to the satisfaction of the
following conditions:

     (a) All representations and warranties of CAC contained in this Agreement shall be true and
correct on the Closing Date, the Initial Funding Date and the date of each Incremental Funding with
the same effect as though such representations and warranties had been made on such date and the
date of each Incremental Funding;

     (b) With respect to those Loans contributed on the Initial Funding Date and the date of each
Incremental Funding, all information concerning such Loans provided to Funding shall be true and
correct in all material respects as of the Initial Funding Date and the date of each Incremental
Funding;

     (c) CAC shall have substantially performed all other obligations required to be performed by
the provisions of this Agreement;

     (d) CAC shall have filed or caused to be filed, or shall have delivered for filing, the
financing statement(s) required to be filed pursuant to Section 2.1(e);

     (e) All corporate and legal proceedings and all instruments in connection with the
transactions contemplated by this Agreement shall be satisfactory in form and substance to Funding,
and Funding shall have received from CAC copies of all documents (including, without limitation,
records of corporate proceedings) relevant to the transactions herein contemplated as Funding may
reasonably have requested; and

     (f) On the Initial Funding Date, CAC shall deliver to Funding and the Deal Agent a Monthly
Report as of the Initial Funding Date.

ARTICLE VIII

MISCELLANEOUS PROVISIONS

     Section 8.1 Amendment. This Agreement and the rights and obligations of the parties
hereunder may not be changed orally, but only by an instrument in writing signed by Funding and CAC
and consented to in writing by the Deal Agent.

     Section 8.2 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.

15

 

     Section 8.3 Notices. Except where telephonic instructions or notices are authorized
herein to be given, all notices, demands, instructions and other communications required or
permitted to be given to or made upon any party hereto shall be in writing and shall be sent by
facsimile transmission with a confirmation of the receipt thereof and shall be deemed to be given
for purposes of this Agreement on the day that the receipt of such facsimile transmission is
confirmed in accordance with the provisions of this Section 8.3. Unless otherwise specified in a
notice sent or delivered in accordance with the foregoing provisions of this Section, notices,
demands, instructions (including payment instructions) and other communications in writing shall be
given to or made upon the respective parties hereto at their respective addresses and accounts
indicated below, and, in the case of telephonic instructions or notices, by calling the telephone
number or numbers indicated for such party below:

     (a)   in the case of Funding:

CAC Warehouse Funding Corporation II

Silver Triangle Building

25505 West Twelve Mile Road

Southfield, Michigan 48034-8339

Attention: Jeff Soutar

Telephone: (248) 353-2700 (ext. 5646)

Telecopy: (877) 320-1576

with a copy to:

Wells Fargo Securities, LLC

301 South College Street

Charlotte, North Carolina 28202

Attention: Conduit Administrator

Telephone: (704) 374-2520

Facsimile: (704) 383-3282

     (b)   in the case of CAC and in the case of the Servicer (for so long as the Servicer is CAC):

Credit Acceptance Corporation

Silver Triangle Building

25505 West Twelve Mile Road

Southfield, Michigan 48034-8339

Attention: Jeff Soutar

Telephone: (248) 353-2700 (ext. 5646)

Telecopy: (877) 320-1576

or, as to each party, at such other address as shall be designated by such party in a written
notice to each other party.

16

 

     Section 8.4 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid,
then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining
covenants, agreements, provisions, or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement.

     Section 8.5 Assignment. This Agreement may not be assigned by the parties hereto,
except that Funding may assign its rights hereunder pursuant to the Loan and Security Agreement to
the Collateral Agent or the Deal Agent, for the benefit of VFCC and any Additional Conduits and the
Investors, and that VFCC and any Additional Conduits may assign any or all of its rights to any
Liquidity Bank. Funding hereby notifies CAC (and CAC hereby acknowledges) that Funding, pursuant
to the Loan and Security Agreement, has assigned its rights hereunder to the Deal Agent. All
rights of Funding hereunder may be exercised by the Deal Agent or its assignees, to the extent of
their respective rights pursuant to such assignments.

     Section 8.6 Further Assurances. Funding, CAC and the Servicer agree to do and
perform, from time to time, any and all acts and to execute any and all further instruments
required or reasonably requested by the other parties in order to more fully effect the purposes of
this Agreement, including, without limitation, the execution of any financing statements or
continuation statements or equivalent documents relating to the Loans for filing under the
provisions of the UCC or other laws of any applicable jurisdiction.

     Section 8.7 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of Funding, CAC or the Deal Agent, any right, remedy, power or privilege
hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges herein provided are cumulative and not exhaustive of any rights, remedies, powers and
privilege provided by law.

     Section 8.8 Counterparts. This Agreement may be executed in two or more counterparts
including telecopy transmission thereof (and by different parties on separate counterparts), each
of which shall be an original, but all of which together shall constitute one and the same
instrument.

     Section 8.9 Binding Effect; Third-Party Beneficiaries. This Agreement shall inure to
the benefit of and be binding upon the parties hereto and their respective successors and permitted
assigns. The Deal Agent, the Collateral Agent on behalf of VFCC and the Investors, and any
Liquidity Bank are intended by the parties hereto to be third-party beneficiaries of this
Agreement.

     Section 8.10 Merger and Integration. Except as specifically stated otherwise herein,
this Agreement sets forth the entire understanding of the parties relating to the subject matter
hereof, and all prior understandings, written or oral, are superseded by this Agreement. This
Agreement may not be modified, amended, waived or supplemented except as provided herein.

17

 

     Section 8.11 Headings. The headings herein are for purposes of reference only and
shall not otherwise affect the meaning or interpretation of any provision hereof.

     Section 8.12 Exhibits. The schedules and exhibits referred to herein shall constitute
a part of this Agreement and are incorporated into this Agreement for all purposes.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

18

 

     IN WITNESS WHEREOF, Funding and CAC each have caused this Contribution Agreement to be duly
executed by their respective officers as of the day and year first above written.

	 	 	 	 	 	 	 	 

	FUNDING:	 	CAC WAREHOUSE FUNDING

CORPORATION II	 
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Douglas W. Busk	 
	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Douglas W. Busk	 
	 

	 	 	 	Title:
	 	Treasurer	 
	 
	 	 	 	 	 	 
	 	 	CAC Warehouse Funding Corporation II 

Silver Triangle Building 

25505 West Twelve Mile Road 

Southfield, Michigan 48034-8339

Attention: Jeff Soutar 

Telephone: (248) 353 2700 (ext. 5646)

Telecopy: (877) 320-1576
	 
	 	 	 	 	 	 
	CAC:	 	CREDIT ACCEPTANCE CORPORATION
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Douglas W. Busk
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Douglas W. Busk
	 

	 	 	 	Title:
	 	Treasurer
	 
	 	 	 	 	 	 
	 	 	CAC Warehouse Funding Corp. 

Silver Triangle Building 

25505 West Twelve Mile Road 

Southfield, Michigan 48034-8339

Attention: Jeff Soutar 

Telephone: (248) 353 2700 (ext. 5646) 

Telecopy: (877) 320-1576

 

 

Exhibit A

List of Conveyed PropertyExhibit 10.3

Exhibit 10.3

AMENDMENT NO. 1 dated as of July 28, 2010 (this “Amendment”), to the Credit Agreement
dated as of February 14, 2007 (as amended and restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), by and among VANGENT, INC. (f/k/a PGS Solutions, Inc.), a
Delaware corporation, VANGENT HOLDING CORP. (f/k/a PGS Holding Corp.), a Delaware corporation, the
Lenders, WELLS FARGO SECURITIES, LLC (successor by merger to Wachovia Capital Markets, LLC) and
GOLDMAN SACHS CREDIT PARTNERS L.P. (“GSCP”), as joint lead arrangers and joint bookmanagers,
WELLS FARGO BANK, N.A. (successor by merger to Wachovia Bank, National Association), as
administrative agent (in such capacity, the “Administrative Agent”) for the Lenders and as
swingline lender and issuing lender, and GSCP, as syndication agent. Terms used herein without
definition shall have the meanings assigned to such terms in the Credit Agreement.

WHEREAS, Borrower intends to sell Vangent Mexico, S.A. de C.V. Vangent Servicios de Mexico,
S.A. de C.V., Proyectos Prohumane Mexico, S. A. de C.V, Vangent Venezuela, C.A., and Vangent
Argentina, S.A., which are its subsidiaries.

WHEREAS, Borrower has requested that the Administrative Agent and Required Lenders agree to
amend the Credit Agreement as set forth herein;

WHEREAS, the Administrative Agent and Required Lenders are willing to so agree pursuant to the
terms and subject to the conditions set forth herein; and

WHEREAS, the Lenders party hereto have agreed, subject to the terms and conditions hereinafter
set forth, to amend the Credit Agreement in certain respects as set forth below;

NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
contained herein, the parties hereto hereby agree, on the terms and subject to the conditions set
forth herein, as follows:

SECTION
1 Amendments to the Credit Agreement. The Credit Agreement is, effective as of the
Amendment No. 1 Effective Date (as defined herein) and subject to the satisfaction of the conditions
precedent set forth in Section 3, hereby amended as follows:

(a)Amendments to Section 1.01. Defined Terms.

(i) The following definitions shall be added in appropriate alphabetical order to read as
follows:

“Amendment No. 1” means Amendment No. 1 to this Agreement, dated as of July
28, 2010, among Borrower, the Guarantors, the Lenders party thereto, and the Administrative
Agent.

“Amendment No. 1 Effective Date” means the date that Amendment No. 1 became
effective in accordance with Section 3 of Amendment No. 1 which date is July 28, 2010.

“Latin American Asset Sale” shall mean the sale, in one or more transactions,
of all of the Capital Stock and/or all or substantially all of the assets and business of Vangent Mexico, S.A. de C.V. Vangent Servicios de Mexico, S.A. de C.V., Proyectos
Prohumane Mexico, S. A. de C.V., Vangent Venezuela, C.A., and Vangent Argentina, S.A, in
each case, as in effect on the Amendment No. 1 Effective Date.

 

4

 

(ii) The definition of “Permitted Acquisitions” is amended as follows:

(a) by deleting “$30,000,000” in clause (i) thereof and replacing it with
“$75,000,000”;

(b) by deleting “$50,000,000” in clause (i) thereof and replacing it with
“$175,000,000”;

(c) by deleting the word “and” at the end of clause (j) thereof; and

(d) by adding the following as a new clause (j) and renumbering clauses (j) and (k)
thereof as clauses (k) and (l), respectively:

“(j) not later than five (5) Business Days prior to the proposed closing date of such
acquisition, Borrower shall have delivered to the Administrative Agent and the Lenders a
certificate, in form and substance reasonably satisfactory to the Administrative Agent and
the Lenders, that on a pro forma basis (after giving effect to the acquisition and any
Extensions of Credit made or to be made in connection therewith) the Borrower would have no
less than $20,000,000 of availability under the Revolving Credit Facility after giving
effect to outstanding L/C Obligations and outstanding Swingline Loans; and”

(b) Amendments to Section 4.4. Prepayments of Term Loan.

(i)
Section 4.4(b)(ii) shall be amended by adding at the end of the first sentence
thereof:

“; provided, further, that such amount will be reduced to twenty five
percent (25%) of the aggregate Net Cash Proceeds of such Equity Issuance if the
Consolidated Leverage Ratio, as of the most recently ended Fiscal Quarter or Fiscal Year
(as applicable) for which financial statements have been delivered pursuant to Section
8.1(a) or Section 8.1(b) (but without giving effect to such prepayment), was
less than 4.0:1.0.”

(ii) Section 4.4(b)(iii) shall be amended by adding the words “and Section
11.5(j)” immediately after the first reference to “Section 11.5(h)”.

(c) Amendments to Section 9.11. Section 9.11(a) of the Credit Agreement shall be
amended by adding immediately at the end of such section: “provided further that, to the
extent prohibited by the Organizational Documents of such Domestic Subsidiary, such Domestic
Subsidiary shall not be required to (x) become a Guarantor or (y) grant a Lien in its assets, and no
Credit Party shall be required to pledge the Capital Stock of such Domestic Subsidiary, in each
case, so long as such Domestic Subsidiary does not account for more than 2.0% of the revenue of the
Borrower and its Subsidiaries on a Consolidated basis (determined in accordance with GAAP), and all
Domestic Subsidiaries that, pursuant to this proviso, do not become Guarantors or grant a Lien on
their assets or whose Capital Stock is not pledged do not account, in the aggregate, for more than
2.5% of the revenue of the Borrower and its Subsidiaries on a Consolidated basis (determined in
accordance with GAAP).”

(d) Amendments to Section 11.4. Section 11.4 of the Credit Agreement shall be
amended by:

(i) deleting the word “and” at the end of clause (d) thereof;

 

5

 

(ii) replacing the period at the end of clause (e) thereof with “; and”; and

(iii) adding a new clause at the end of such section as follows:

(f) “any Subsidiary of Borrower described in Section 11.5(j) may merge,
consolidate or enter into any similar transaction with any other Person
or liquidate, wind up or dissolve in order to effectuate an Asset
Disposition permitted by Section 11.5(j).”

(e) Amendments to Section 11.5. Section 11.5 of the Credit Agreement shall be
amended by :

(i) deleting the words “$2,500,000 in any Fiscal Year and $5,000,000” in clause (h)
thereof and replacing it with “$10,000,000”;

(ii) deleting the word “and” at the end of clause (h) thereof;

(iii) replacing the period at the end of clause (i) thereof with “; and”; and

(iv) adding a new clause at the end of such section as follows:

“(j) the Latin American Asset Sale, the proceeds of which, for the avoidance of doubt,
shall be subject to the mandatory prepayment provisions of Section 4.4(b)(iii).”

SECTION
2 Covenants.

(a) Borrower hereby covenants and agrees to deliver or cause to be delivered to the
Administrative Agent all material definitive agreements and other definitive documentation relating
to the Latin American Asset Sale, promptly after the same becomes available.

SECTION
3 Conditions Precedent. The effectiveness of this Amendment is subject to the
following conditions:

(a)
The Administrative Agent shall have received signature pages for this Amendment from
Borrower and the Required Lenders;

(b)
The Borrower shall have paid to the Administrative Agent, for the account of each
Lender that has delivered an executed counterpart of this Amendment on or prior to 3:00 pm
Eastern Time, on July 27, 2010, or such later date and time specified by the Borrower and
notified in writing to the Lenders by the Administrative Agent (each, a “Consenting
Lender”), a fee equal to 0.50% of the aggregate amount of outstanding Loans plus,
without duplication, the aggregate amount of Revolving Credit Commitments of such Lender;

(c)
The Borrower shall have paid all amounts payable pursuant to Section 10 hereof
for which it has received invoices on or prior to the date the other conditions in this
Section 3 have been satisfied; and

(d)
The representations and warranties in Section 4 hereto shall be true and
correct as of the date hereof and after giving effect to this Amendment and an officer of
the Borrower shall have delivered to the Administrative Agent a certificate, in form and
substance reasonably satisfactory to the Administrative Agent, to such effect.

 

6

 

SECTION
4 Representations and Warranties. Each Credit Party represents and warrants to the
Administrative Agent and each of the Lenders that:

(a)
This Amendment is within Borrower’s organizational powers and has been duly authorized
by all necessary organizational action on the part of Borrower. This Amendment has been
duly executed and delivered by Borrower and constitutes, a legal, valid and binding
obligation of Borrower, enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law. This Amendment will not violate any
Requirement of Law, will not violate or result in a default or require any consent or
approval under any indenture, agreement or other instrument binding upon any Credit Party
or its property in each case, which could reasonably be expected to have a Material Adverse
Effect, or (except as provided herein or in the Credit Agreement after giving effect to
this Amendment) give rise to a right thereunder to require any payment to be made by any
Credit Party.

(b)
After giving effect to this Amendment, the representations and warranties set forth in
Article VII of the Credit Agreement or in any Loan Document are true and correct in all
material respects (it being understood and agreed that any representation or warranty that
by its terms is made as of a specified date shall be required to have been true and correct
in all material respects as of such specified date).

(c)
After giving effect to this Amendment, no Default or Event of Default has occurred or
is continuing.

SECTION
5 Certain Consequences of Effectiveness.

On and after the Amendment No. 1 Effective Date, the rights and obligations of the parties to the
existing Credit Agreement and each other Loan Document (as defined in the existing Credit Agreement,
the “Existing Loan Documents”) shall be governed by the Credit Agreement as amended hereby
and each Existing Loan Document as amended hereby; provided that the rights and obligations of the
parties to the existing Credit Agreement and the other Existing Loan Documents with respect to the
period prior to the Amendment No. 1 Effective Date shall continue to be governed by the provision of
the existing Credit Agreement and Existing Loan Documents prior to giving effect to this Amendment
and the amendments contemplated hereby. The existing Credit Agreement and the other Existing Loan
Documents, as specifically amended hereby, are, and shall continue to be, in full force and effect
and are hereby ratified and confirmed in all respects. Without limiting the foregoing, (i) the
Security Documents and all of the Collateral does and shall continue to secure the payment of all
Obligations on the terms and conditions set forth in the Security Documents as amended hereby and
(ii) each Guarantor hereby confirms and ratifies its continuing unconditional obligations as
Guarantor under the relevant Guaranty Agreement with respect to all of the Obligations thereunder,
under the Credit Agreement and all other Loan Documents as amended pursuant to this Amendment, all
on the terms set forth in such Guaranty Agreement.

SECTION
6 Real Estate Matters. Each Credit Party represents and warrants that, since the
Closing Date, it has not acquired Real Property with a fair market value of at least $2.0 million.

SECTION
7 Credit Agreement. Except as specifically provided hereby, the Credit Agreement shall
continue in full force and effect in accordance with the provisions thereof as in existence on the
date hereof. After the date hereof, any reference to the Credit Agreement in any Loan Document
shall mean the Credit Agreement as modified hereby. This Amendment shall be a Loan Document for all
purposes.

 

7

 

SECTION
8 Applicable Law. This Amendment shall be construed in accordance with and governed by
the law of the State of New York, without regard to conflicts of law principles that would require
the application of the laws of another jurisdiction.

SECTION
9 Counterparts. This Amendment may be executed in two or more counterparts, each of
which shall constitute an original but all of which when taken together shall constitute one
contract. Delivery of an executed signature page of this Amendment by facsimile or “pdf file”
transmission shall be effective as delivery of a manually executed counterpart hereof.

SECTION
10 Expenses. Borrower agrees to reimburse the Administrative Agent for the reasonable
out-of-pocket expenses incurred by it in connection with this Amendment, including the reasonable
fees, charges and disbursements of Cahill Gordon & Reindel llp, counsel for the
Administrative Agent.

SECTION
11 Headings. The Section headings used herein are for convenience of reference only,
are not part of this Amendment and are not to affect the construction of, or to be taken into
consideration in interpreting, this Amendment.

[Signature pages to follow]

 

8

 

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

	 	 	 	 
	 	VANGENT, INC.,
	 	as Borrower
	 
	 	By:	 	/s/James C. Reagan
	 	James C. Reagan

Senior Vice President, and

Chief Financial Officer
	 
	 	VANGENT HOLDING CORP.,
	 	as Holdings
	 
	 	By:	 	/s/James C. Reagan
	 	James C. Reagan

Senior Vice President, and

Chief Financial Officer
	 
	 	BLUEPRINT TECHNOLOGIES,
	 	INC.,

    as a Guarantor
	 
	 	By:	 	/s/James C. Reagan
	 	James C. Reagan

Senior Vice President, and

Chief Financial Officer.
	 
	 	WELLS FARGO BANK, N.A,
	 	successor by merger to

Wachovia Bank, National

Association

as Administrative Agent,

Swingline Lender, Issuing

Lender and Lender
	 
	 	By:	 	/s/Mark B. Felker
	 	Mark B. Felker

Managing Director
	 
	 	[LENDER]
	 
	 	By:	 	/s/Various
	 	[For Lenders requiring a

second signature block
	 

 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]