Document:

exv4wfw130

Exhibit 4(f)(130)

EXECUTION COPY

$250,000,000

CREDIT ACCEPTANCE CORPORATION

9.125% First Priority Senior Secured Notes due 2017

REGISTRATION RIGHTS AGREEMENT

February 1, 2010

	 
	Credit Suisse Securities (USA) LLC (“Credit Suisse”),

	As representative of the Initial Purchasers

	Eleven Madison Avenue

	New York, New York 10010-3629

Dear Sirs:

     Credit Acceptance Corporation, a Michigan corporation (the “Issuer”), proposes to issue and
sell to Credit Suisse, as representative of the initial purchasers set forth on Schedule I hereto
(the “Initial Purchasers”), upon the terms set forth in a purchase agreement dated January 25, 2010
(the “Purchase Agreement”), $250,000,000 aggregate principal amount of its 9.125% First Priority
Senior Secured Notes due 2017 (the “Initial Securities”) to be unconditionally guaranteed (the
“Guarantees”) by Buyers Vehicle Protection Plan, Inc. and Vehicle Remarketing Services, Inc. (the
“Guarantors” and together with the Issuer, the “Company”). The Initial Securities will be issued
pursuant to an Indenture, dated as of February 1, 2010 (the “Indenture”), among the Issuer, the
Guarantors named therein and U.S. Bank National Association (the “Trustee”). As an inducement to
the Initial Purchasers, the Company agrees with the Initial Purchasers, for the benefit of the
holders of the Initial Securities (including, without limitation, the Initial Purchasers), the
Exchange Securities (as defined below) and the Private Exchange Securities (as defined below)
(collectively the “Holders”), as follows:

     1. Registered Exchange Offer. If any Transfer Restricted Securities (as defined in Section
6(d) hereof) other than Exchange Securities (as defined below) remain outstanding on the date
falling 400 days after the date of original issue of the Initial Securities (the “Issue Date”), the
Company shall (a) within 400 days after the Issue Date, at its own cost, prepare and file with the
Securities and Exchange Commission (the “Commission”) a registration statement (the “Exchange Offer
Registration Statement”) on an appropriate form under the Securities Act of 1933, as amended (the
“Securities Act”), with respect to a proposed offer (the “Registered Exchange Offer”) to the
Holders of Initial Securities who are not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer to issue and deliver to such Holders as soon as
practicable after the effectiveness of the Exchange Offer Registration Statement, in exchange for
the Initial Securities, a like aggregate principal amount of debt securities (the “Exchange
Securities”) of the Issuer issued under the Indenture and identical in all material respects to the
Initial Securities (except for the transfer restrictions relating to the Initial Securities and the
provisions relating to the matters described in Section 6 hereof) that would be registered under
the Securities Act; (b) use its reasonable best efforts to cause the Exchange Offer Registration
Statement to be declared effective under the Securities Act within 490 days after the Issue Date;
and (c) keep the Registered Exchange Offer open for not less than 20 days (or longer, if required
by applicable law) after the date notice of the Registered Exchange Offer is mailed to the Holders
of the Initial Securities (such period being called the “Exchange Offer Registration
Period”).

 

     If the Company effects the Registered Exchange Offer, the Company will be entitled (subject to
applicable law) to close the Registered Exchange Offer 20 days after the commencement thereof
provided that the Company has accepted all the Initial Securities theretofore validly tendered in
accordance with the terms of the Registered Exchange Offer.

     Following the declaration of the effectiveness of the Exchange Offer Registration Statement,
the Company shall as soon as practicable commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder of Transfer Restricted Securities
electing to exchange the Initial Securities for Exchange Securities (assuming that such Holder is
not an affiliate of the Company within the meaning of the Securities Act, acquires the Exchange
Securities in the ordinary course of such Holder’s business and has no arrangements or
understandings with any person to participate in the distribution (within the meaning of the
Securities Act) of the Exchange Securities and is not prohibited by any law or policy of the
Commission from participating in the Registered Exchange Offer) to trade such Exchange Securities
from and after their receipt without any limitations or restrictions under the Securities Act and
without material restrictions under the securities laws of the several states of the United States.

     The Company acknowledges that, pursuant to current interpretations by the Commission’s staff
of Section 5 of the Securities Act, in the absence of an applicable exemption therefrom, (i) each
Holder which is a broker-dealer electing to exchange Initial Securities, acquired for its own
account as a result of market-making activities or other trading activities, for Exchange
Securities (an “Exchanging Dealer”), is required to deliver a prospectus containing the information
set forth in (a) Annex A hereto on the cover, (b) Annex B hereto in the “Exchange Offer Procedures”
(or other appropriate) section of such prospectus and the “Purpose of the Exchange Offer” (or other
appropriate) section of such prospectus and (c) Annex C hereto in the “Plan of Distribution”
section of such prospectus in connection with a sale of any such Exchange Securities received by
such Exchanging Dealer pursuant to the Registered Exchange Offer and (ii) an Initial Purchaser that
elects to sell Exchange Securities acquired in exchange for Initial Securities constituting any
portion of an unsold allotment is required to deliver a prospectus containing the information
required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in
connection with such sale.

     The Company shall use its reasonable best efforts to keep the Exchange Offer Registration
Statement effective and amend and supplement the prospectus contained therein in order to permit
such prospectus to be lawfully delivered by all persons subject to the prospectus delivery
requirements of the Securities Act for 180 days following the effective date of the Exchange Offer
Registration Statement or such shorter period of time as such persons must comply with such
requirements in order to resell the Exchange Securities; provided, however, that
(i) in the case where such prospectus and any amendment or supplement thereto must be delivered by
an Exchanging Dealer or an Initial Purchaser, such period shall be the lesser of 180 days and the
date on which all Exchanging Dealers and the Initial Purchasers have sold all Exchange Securities
held by them (unless such period is extended pursuant to Section 3(j) below) and (ii) the Company
shall make such prospectus and any amendment or supplement thereto available to any requesting
broker-dealer for use in connection with any resale of any Exchange Securities for a period of not
less than 90 days after the consummation of the Registered Exchange Offer.

     If, upon consummation of the Registered Exchange Offer, any Initial Purchaser holds Initial
Securities acquired by it as part of its initial distribution, the Company, simultaneously with the
delivery of the Exchange Securities pursuant to the Registered Exchange Offer, shall issue and
deliver to such Initial Purchaser upon the written request of such Initial Purchaser, in exchange
(the “Private Exchange”) for the Initial Securities held by such Initial Purchaser, a like
principal amount of debt securities of the Issuer issued under the Indenture and identical in all
material respects (including the existence of restrictions on transfer under the Securities Act and
the securities laws of the several states of the United States, but

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excluding provisions relating to the matters described in Section 6 hereof) to the Initial
Securities (the “Private Exchange Securities”). The Initial Securities, the Exchange Securities
and the Private Exchange Securities are herein collectively called the “Securities”.

     In connection with the Registered Exchange Offer, the Company shall:

     (a) mail or deliver to each Holder of Initial Securities a copy of the prospectus
forming part of the Exchange Offer Registration Statement, together with an appropriate
letter of transmittal and related documents;

     (b) keep the Registered Exchange Offer open for not less than 20 days (or longer, if
required by applicable law) after the date notice thereof is mailed or delivered to such
Holders;

     (c) utilize the services of a depositary for the Registered Exchange Offer with an
address in the Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate of the Trustee;

     (d) permit Holders to withdraw tendered Initial Securities at any time prior to the
close of business, New York time, on the last business day on which the Registered Exchange
Offer shall remain open; and

     (e) otherwise comply with all applicable laws.

     As soon as reasonably practicable after the close of the Registered Exchange Offer or the
Private Exchange, as the case may be, the Company shall:

     (x) accept for exchange all the Initial Securities validly tendered and not withdrawn
pursuant to the Registered Exchange Offer and the Private Exchange;

     (y) deliver to the Trustee for cancellation all the Initial Securities so accepted
for exchange; and

     (z) cause the Trustee to authenticate and deliver promptly to each Holder of the
Initial Securities, Exchange Securities or Private Exchange Securities, as the case may be,
equal in principal amount to the Initial Securities of such Holder so accepted for
exchange.

     Each Holder participating in the Registered Exchange Offer shall be required to represent to
the Company that at the time of the consummation of the Registered Exchange Offer (i) any Exchange
Securities received by such Holder will be acquired in the ordinary course of business, (ii) such
Holder has no arrangements or understanding with any person to participate in the distribution of
the Securities or the Exchange Securities within the meaning of the Securities Act, (iii) such
Holder is not an “affiliate,” as defined in Rule 405 of the Securities Act, of the Company or if it
is an affiliate, such Holder will comply with the registration and prospectus delivery requirements
of the Securities Act to the extent applicable, (iv) if such Holder is not a broker-dealer, that it
is not engaged in, and does not intend to engage in, a distribution (within the meaning of the
Securities Act) of the Exchange Securities and (v) if such Holder is a broker-dealer, that it will
receive Exchange Securities for its own account in exchange for Initial Securities that were
acquired as a result of market-making activities or other trading activities and that it will be
required to acknowledge that it will deliver a prospectus in connection with any resale of such
Exchange Securities.

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     Notwithstanding any other provisions hereof, the Company will ensure that (i) any Exchange
Offer Registration Statement and any amendment thereto and any prospectus forming part thereof and
any supplement thereto complies in all material respects with the Securities Act and the rules and
regulations thereunder, (ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the statements therein not
misleading and (iii) any prospectus forming part of any Exchange Offer Registration Statement, and
any supplement to such prospectus, does not include an untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not misleading.

     2. Shelf Registration. If any Transfer Restricted Securities other than Exchange Securities
remain outstanding on the date falling 400 days after the Issue Date and (i) because of any change
in law or in applicable interpretations thereof by the staff of the Commission, the Company is not
permitted to effect a Registered Exchange Offer and would otherwise be required to effect a
Registered Exchange Offer pursuant to Section 1 hereof, (ii) the Registered Exchange Offer is not
consummated within 580 days of the Issue Date, (iii) any Initial Purchaser so requests in writing
with respect to the Initial Securities (or the Private Exchange Securities) constituting Transfer
Restricted Securities that are not eligible to be exchanged for Exchange Securities in the
Registered Exchange Offer as a result of being held by such Initial Purchaser and held by it
following consummation of the Registered Exchange Offer or (iv) any Holder of Transfer Restricted
Securities is prohibited by applicable law or Commission policy from participating in the
Registered Exchange Offer or may not resell the Exchange Notes acquired by it in the Registered
Exchange Offer to the public without delivery of a prospectus, the Company shall take the following
actions:

     (a) The Company shall, at its cost, within 30 days after the time its obligation to
file an Exchange Offer Registration Statement arises (but no earlier than 400 days after
the Issue Date), file with the Commission and thereafter shall use its reasonable best
efforts to cause to be declared effective on or prior to the 90th day after the date on
which the Shelf Registration Statement (as defined below) is required to be filed (but no
earlier than 490 days after the Issue Date) (unless it becomes effective automatically upon
filing) a registration statement (the “Shelf Registration Statement” and, together with the
Exchange Offer Registration Statement, a “Registration Statement”) on an appropriate form
under the Securities Act relating to the offer and sale of the Transfer Restricted
Securities by the Holders thereof from time to time in accordance with the methods of
distribution set forth in the Shelf Registration Statement and Rule 415 under the
Securities Act (hereinafter, the “Shelf Registration”); provided, however,
that no Holder (other than an Initial Purchaser) shall be entitled to have the Securities
held by it covered by such Shelf Registration Statement unless such Holder agrees in
writing to be bound by all the provisions of this Agreement applicable to such Holder.

     (b) The Company shall use its reasonable best efforts to keep the Shelf Registration
Statement continuously effective in order to permit the prospectus included therein to be
lawfully delivered by the Holders of the relevant Securities until the earlier of (1) three
years from the Issue Date and (2) the date on which all Securities registered thereunder
are disposed of in accordance therewith (or for such longer period if extended pursuant to
Section 3(j) below) or such shorter period that will terminate when all the Securities
covered by the Shelf Registration Statement (i) have been sold pursuant thereto or (ii) are
no longer Transfer Restricted Securities. The Company shall be deemed not to have used its
reasonable best efforts to keep the Shelf Registration Statement effective during the
requisite period if it voluntarily takes any action that would result in Holders of
Securities covered thereby not being able to offer and sell such

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Securities during that
period, unless such action is required by applicable law; provided that the Company
shall not be so
deemed unless such action results in a Registration Default (after giving effect to Section
6(b) hereof).

     (c) Notwithstanding any other provisions of this Agreement to the contrary, the
Company shall cause the Shelf Registration Statement and the related prospectus and any
amendment or supplement thereto, as of the effective date of the Shelf Registration
Statement, amendment or supplement, (i) to comply in all material respects with the
applicable requirements of the Securities Act and the rules and regulations of the
Commission thereunder and (ii) not to contain any untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make
the statements therein, in light of the circumstances under which they were made, not
misleading.

     3. Registration Procedures. In connection with any Shelf Registration contemplated by
Section 2 hereof and, to the extent applicable, any Registered Exchange Offer contemplated by
Section 1 hereof, the following provisions shall apply:

     (a) The Company shall (i) furnish to each Initial Purchaser, prior to the filing
thereof with the Commission, a copy of the Registration Statement and each amendment
thereof and each supplement, if any, to the prospectus included therein and, in the event
that an Initial Purchaser (with respect to any portion of an unsold allotment from the
original offering) is participating in the Registered Exchange Offer or the Shelf
Registration, the Company shall use its reasonable best efforts to reflect in each such
document, when so filed with the Commission, such comments as such Initial Purchaser
reasonably may propose; (ii) include the information set forth in Annex A hereto on the
cover, in Annex B hereto in the “Exchange Offer Procedures” (or other appropriate) section
of such prospectus and the “Purpose of the Exchange Offer” (or other appropriate) section
of such prospectus and in Annex C hereto in the “Plan of Distribution” section of the
prospectus forming a part of the Exchange Offer Registration Statement and include the
information set forth in Annex D hereto in the Letter of Transmittal delivered pursuant to
the Registered Exchange Offer, in each case subject to any change, addition, deletion or
moving of such disclosure requested by the staff of the Commission; (iii) if reasonably
requested by an Initial Purchaser, include the information required by Items 507 or 508 of
Regulation S-K under the Securities Act, as applicable, in the prospectus forming a part of
the Exchange Offer Registration Statement; (iv) include within the prospectus contained in
the Exchange Offer Registration Statement a section entitled “Plan of Distribution,”
reasonably acceptable to the Initial Purchasers, which shall contain a summary statement of
the positions taken or policies made by the staff of the Commission with respect to the
potential “underwriter” status of any broker-dealer that is the beneficial owner (as
defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)), of Exchange Securities received by such broker-dealer in the Registered Exchange
Offer (a “Participating Broker-Dealer”), whether such positions or policies have been
publicly disseminated by the staff of the Commission or such positions or policies, in the
reasonable judgment of the Initial Purchasers based upon advice of counsel (which may be
in-house counsel), represent the prevailing views of the staff of the Commission; and (v)
in the case of a Shelf Registration Statement, include in the prospectus included in the
Shelf Registration Statement (or, if permitted by Commission Rule 430B(b), in a prospectus
supplement that becomes a part thereof pursuant to Commission Rule 430B(f)) that is
delivered to any Holder pursuant to Sections 3(d) and (f), the names of the Holders who
propose to sell Securities pursuant to the Shelf Registration Statement, as selling
security holders.

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     (b) The Company shall give written notice to the Initial Purchasers, the Holders and
any Participating Broker-Dealer from whom the Company has received prior written notice
that it will
be a Participating Broker-Dealer in the Registered Exchange Offer (which notice pursuant to
clauses (ii)-(v) hereof shall be accompanied by an instruction to suspend the use of the
prospectus until the requisite changes have been made):

     (i) when the Registration Statement or any amendment thereto has been filed
with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective;

     (ii) of any request by the Commission for amendments or supplements to the
Registration Statement or the prospectus included therein or for additional
information;

     (iii) of the issuance by the Commission of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
for that purpose, of the issuance by the Commission of a notification of objection
to the use of the form on which the Registration Statement has been filed and of
the happening of any event that causes the Company to become an “ineligible
issuer,” as defined in Commission Rule 405.

     (iv) of the receipt by the Company or its legal counsel of any notification
with respect to the suspension of the qualification of the Securities for sale in
any jurisdiction or the initiation or threatening of any proceeding for such
purpose; and

     (v) of the happening of any event that requires the Company to make changes
in the Registration Statement or the prospectus in order that the Registration
Statement or the prospectus does not contain an untrue statement of a material fact
nor omit to state a material fact required to be stated therein or necessary to
make the statements therein (in the case of the prospectus, in light of the
circumstances under which they were made) not misleading.

     (c) The Company shall make every reasonable effort to obtain the withdrawal, at the
earliest possible time, of any order suspending the effectiveness of the Registration
Statement.

     (d) If not otherwise available on the Commission’s Electronic Data Gathering,
Analysis and Retrieval (“EDGAR”) System or similar system, upon the written request of a
Holder of Securities included within the coverage of the Shelf Registration, the Company
shall furnish to each such Holder, without charge, at least one copy of the Shelf
Registration Statement and any post-effective amendment or supplement thereto, including
financial statements and schedules, and, if the Holder so requests in writing, all exhibits
thereto (including those, if any, incorporated by reference). The Company shall not,
without the prior consent of the Initial Purchasers, make any offer relating to the
Securities that would constitute a “free writing prospectus,” as defined in Commission Rule
405.

     (e) If not otherwise available on the Commission’s EDGAR System or similar system,
upon the written request of any Holder, the Company shall deliver to each Exchanging Dealer
and each Initial Purchaser, and to any other Holder who so requests in writing, without
charge, at least one copy of the Exchange Offer Registration Statement and any
post-effective amendment thereto, including financial statements and schedules, and, if any
Initial Purchaser or any such Holder requests, all exhibits thereto (including those
incorporated by reference).

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     (f) The Company shall, during the period of effectiveness of the Shelf Registration,
deliver to each Holder of Securities included within the coverage of the Shelf
Registration, without charge, as many copies of the prospectus (including each preliminary
prospectus) included in the Shelf Registration Statement and any amendment or supplement
thereto as such person may reasonably request. The Company consents, subject to the
provisions of this Agreement, to the use of the prospectus or any amendment or supplement
thereto by each of the selling Holders in connection with the offering and sale of the
Securities covered by the prospectus, or any amendment or supplement thereto, included in
the Shelf Registration Statement.

     (g) The Company shall deliver to each Initial Purchaser, any Exchanging Dealer, any
Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer, without charge, as many copies of the final
prospectus included in the Exchange Offer Registration Statement and any amendment or
supplement thereto as such persons may reasonably request. The Company consents, subject
to the provisions of this Agreement, to the use of the prospectus or any amendment or
supplement thereto by any Initial Purchaser, if necessary, any Participating Broker-Dealer
and such other persons required to deliver a prospectus following the Registered Exchange
Offer in connection with the offering and sale of the Exchange Securities covered by the
prospectus, or any amendment or supplement thereto, included in such Exchange Offer
Registration Statement.

     (h) Prior to any public offering of the Securities pursuant to any Registration
Statement, the Company shall use its reasonable best efforts to register or qualify or
cooperate with the Holders of the Securities included therein and their respective counsel
in connection with the registration or qualification of the Securities for offer and sale
under the securities or “blue sky” laws of such states of the United States as any Holder
reasonably requests in writing and do any and all other acts or things necessary or
advisable to enable the offer and sale in such jurisdictions of the Securities covered by
such Registration Statement; provided, however, that the Company shall not
be required to (i) qualify generally to do business in any jurisdiction where it is not
then so qualified or (ii) take any action which would subject it to general service of
process or to taxation in any jurisdiction where it is not then so subject.

     (i) The Company shall cooperate with the Holders to facilitate the timely preparation
and delivery of global certificates representing the Securities to be sold pursuant to any
Registration Statement, free of any restrictive legends and in such denominations and
registered in such names as the Holders may request a reasonable period of time prior to
sales of the Securities pursuant to such Registration Statement.

     (j) Upon the occurrence of any event contemplated by paragraphs (ii) through (v) of
Section 3(b) above during the period for which the Company is required to maintain an
effective Registration Statement, the Company shall promptly prepare and file a
post-effective amendment to the Registration Statement or a supplement to the related
prospectus and any other required document so that, as thereafter delivered to Holders or
purchasers of Securities, the prospectus will not contain an untrue statement of a material
fact or omit to state any material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not
misleading. The Company shall also promptly provide notice to the Initial Purchasers, the
Holders and any known Participating Broker-Dealer of its determination (which determination
shall have been made by the Company’s board of directors for a bona fide business purpose)
to suspend the availability of a Registration Statement and the related

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prospectus because
the continued effectiveness and use of such Registration Statement and prospectus included
therein would require the disclosure of confidential information or interfere with any
financing, acquisition, corporate reorganization or other material transaction or
development involving the Issuer or any of its consolidated subsidiaries (it being
understood that such notice may disclose only the existence of such determination and need
not disclose the nature of the basis therefore, which may be kept confidential for such
period as may reasonably be required for bona fide business reasons). If the Company
notifies the Initial Purchasers, the Holders and any known Participating Broker-Dealer in
accordance with paragraphs (ii) through (v) of Section 3(b) above or of its determination
pursuant to the second sentence of this Section 3(j) to suspend the use of the prospectus
until the requisite changes to the prospectus have been made (each, a “Suspension Notice”),
then the Initial Purchasers, the Holders and any such Participating Broker-Dealers shall
suspend use of such prospectus, and the period of effectiveness of the Shelf Registration
Statement provided for in Section 2(b) above and the Exchange Offer Registration Statement
provided for in Section 1 above shall each be extended by the number of days from and
including the date of the giving of the Suspension Notice to and including the date when
the Initial Purchasers, the Holders and any known Participating Broker-Dealer shall have
received such amended or supplemented prospectus or notice that the use of such prospectus
may be resumed, as applicable, pursuant to this Section 3(j); provided that, with
respect to an Exchange Offer Registration Statement, the Company shall not give a
Determination Suspension Notice (as defined in Section 6(b) hereof) during the Exchange
Offer Registration Period. During the period during which the Company is required to
maintain an effective Shelf Registration Statement pursuant to this Agreement, the Company
will prior to the three-year expiration of that Shelf Registration Statement file, and use
its reasonable best efforts to cause to be declared effective (unless it becomes effective
automatically upon filing) within a period that avoids any interruption in the ability of
Holders of Securities covered by the expiring Shelf Registration Statement to make
registered dispositions, a new registration statement relating to the Securities, which
shall be deemed the “Shelf Registration Statement” for purposes of this Agreement.

     (k) Not later than the effective date of the applicable Registration Statement, the
Company will provide a CUSIP number for the Initial Securities, the Exchange Securities or
the Private Exchange Securities, as the case may be, and provide the applicable trustee
with printed global certificates for the Initial Securities, the Exchange Securities or the
Private Exchange Securities, as the case may be, in a form eligible for deposit with The
Depository Trust Company.

     (l) The Company will comply with all rules and regulations of the Commission to the
extent and so long as they are applicable to the Registered Exchange Offer or the Shelf
Registration, as applicable, and will make generally available to its security holders (or
otherwise provide in accordance with Section 11(a) of the Securities Act and Rule 158
thereunder) an earnings statement satisfying the provisions of Section 11(a) of the
Securities Act no later than 45 days after the end of a 12-month period (or 90 days, if
such period is a fiscal year) beginning with the first month of the Issuer’s first fiscal
quarter commencing after the effective date of the Registration Statement, which statement
shall cover such 12-month period.

     (m) The Company shall cause the Indenture to be qualified under the Trust Indenture
Act of 1939, as amended, in a timely manner and containing such changes, if any, as shall
be necessary for such qualification. In the event that such qualification would require
the appointment of a new trustee under the Indenture, the Company shall appoint a new
trustee thereunder pursuant to the applicable provisions of the Indenture.

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     (n) The Company may require each Holder of Securities to be sold pursuant to the
Shelf Registration Statement to furnish to the Company such information regarding the
Holder and the distribution of the Securities as the Company may from time to time
reasonably require for
inclusion in the Shelf Registration Statement, and the Company may exclude from such
registration the Securities of any Holder that unreasonably fails to furnish such
information within a reasonable time after receiving such request.

     (o) The Company shall enter into such customary agreements (including, if requested,
an underwriting agreement in customary form) and take all such other action, if any, as any
Holder shall reasonably request in order to facilitate the disposition of the Securities
pursuant to any Shelf Registration.

     (p) In the case of any Shelf Registration, subject to customary confidentiality
agreements being executed by all parties to review information, the Company shall (i) make
reasonably available for inspection by the Holders, any underwriter participating in any
disposition pursuant to the Shelf Registration Statement and any attorney, accountant or
other agent retained by the Holders or any such underwriter all relevant financial and
other records, pertinent corporate documents and properties of the Company and (ii) cause
the Company’s officers, directors and employees to supply all relevant information
reasonably requested by the Holders or any such underwriter, attorney, accountant or agent
in connection with the Shelf Registration Statement, in each case, as shall be reasonably
necessary to enable such persons to conduct a reasonable investigation within the meaning
of Section 11 of the Securities Act; provided, however, that the foregoing
inspection and information gathering shall be coordinated on behalf of the Initial
Purchasers by you and on behalf of the other parties, by one counsel designated by and on
behalf of such other parties as described in Section 4 hereof.

     (q) In the case of any Shelf Registration, the Company, if requested by any Holder of
Securities covered thereby, shall cause (i) its counsel to deliver an opinion and updates
thereof relating to the Securities in customary form addressed to such Holders and the
managing underwriters, if any, thereof and dated, in the case of the initial opinion, the
effective date of such Shelf Registration Statement (it being agreed that the matters to be
covered by such opinion shall include, without limitation, the due incorporation and good
standing of the Company and its subsidiaries; the qualification of the Company and its
subsidiaries to transact business as foreign corporations; the due authorization, execution
and delivery of the relevant agreement of the type referred to in Section 3(o) hereof; the
due authorization, execution, authentication and issuance, and the validity and
enforceability, of the applicable Securities; the absence of material legal or governmental
proceedings involving the Company and its subsidiaries; the absence of governmental
approvals required to be obtained in connection with the Shelf Registration Statement, the
offering and sale of the applicable Securities or any agreement of the type referred to in
Section 3(o) hereof; the compliance as to form of such Shelf Registration Statement and any
documents incorporated by reference therein and of the Indenture with the requirements of
the Securities Act and the Trust Indenture Act, respectively; and (A) as of the date of the
opinion and as of the effective date of the Shelf Registration Statement or most recent
post-effective amendment thereto, as the case may be, the absence from such Shelf
Registration Statement and the prospectus included therein, as then amended or
supplemented, and from any documents incorporated by reference therein and (B) as of an
applicable time identified by such Holders or managing underwriters, the absence from such
prospectus taken together with any other documents identified by such Holders or managing
underwriters, in the case of (A) and (B), of an untrue statement of a material fact or the
omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading (in the case of any such

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incorporated documents,
in the light of the circumstances existing at the time that such documents were filed with
the Commission under the Exchange Act); (ii) its officers to execute and deliver all
customary documents and certificates and updates thereof reasonably requested by any
underwriters of the applicable Securities and (iii) its independent public accountants and
the independent public accountants with respect to any other entity for which financial
information is provided in the Shelf Registration Statement to provide to the selling
Holders of the applicable Securities and any underwriter therefor a comfort letter in
customary form and covering matters of the type customarily covered in comfort letters in
connection with primary underwritten offerings, subject to receipt of appropriate
documentation as contemplated, and only if permitted, by Statement of Auditing Standards
No. 72.

     (r) In the case of the Registered Exchange Offer, if reasonably requested by any
Initial Purchaser or any known Participating Broker-Dealer, the Company shall cause (i) its
counsel to deliver to such Initial Purchaser or such Participating Broker-Dealer a signed
opinion in the form set forth in Sections 7(c) and 7(d) of the Purchase Agreement with such
changes as are customary in connection with the preparation of a Registration Statement and
(ii) its independent public accountants and the independent public accountants with respect
to any other entity for which financial information is provided in the Registration
Statement to deliver to such Initial Purchaser or such Participating Broker-Dealer a
comfort letter, in customary form, meeting the requirements as to the substance thereof as
set forth in Section 7(a) of the Purchase Agreement, with appropriate date changes.

     (s) If a Registered Exchange Offer or a Private Exchange is to be consummated, upon
delivery of the Initial Securities by Holders to the Company (or to such other person as
directed by the Company) in exchange for the Exchange Securities or the Private Exchange
Securities, as the case may be, the Company shall mark, or cause to be marked, on the
Initial Securities so exchanged that such Initial Securities are being canceled in exchange
for the Exchange Securities or the Private Exchange Securities, as the case may be; in no
event shall the Initial Securities be marked as paid or otherwise satisfied.

     (t) The Company will use its reasonable best efforts to (a) if the Initial Securities
have been rated prior to the initial sale of such Initial Securities, confirm such ratings
will apply to the Securities covered by a Registration Statement or (b) if the Initial
Securities were not previously rated, cause the Securities covered by a Registration
Statement to be rated with the appropriate rating agencies, if so requested by Holders of a
majority in aggregate principal amount of Securities covered by such Registration
Statement, or by the managing underwriters, if any.

     (u) In the event that any broker-dealer registered under the Exchange Act shall
underwrite any Securities or participate as a member of an underwriting syndicate or
selling group or “assist in the distribution” (within the meaning of the Conduct Rules (the
“Rules”) of the Financial Industry Regulatory Authority, Inc.) thereof, whether as a Holder
of such Securities or as an underwriter, a placement or sales agent or a broker or dealer
in respect thereof, or otherwise, the Company will use its reasonable best efforts to
assist such broker-dealer in complying with the requirements of such Rules, including,
without limitation, by (i) if such Rules, including Rule 2720, shall so require, engaging a
“qualified independent underwriter” (as defined in Rule 2720) to participate in the
preparation of the Registration Statement relating to such Securities, to exercise usual
standards of due diligence in respect thereto and, if any portion of the offering
contemplated by such Registration Statement is an underwritten offering or is made through
a placement or sales agent, to recommend the yield of such Securities, (ii) indemnifying
any such qualified independent underwriter to the extent of the indemnification of
underwriters provided in

10

 

Section 5 hereof and (iii) providing such information to such
broker-dealer as may be required in order for such broker-dealer to comply with the
requirements of the Rules.

     (v) The Company shall use its reasonable best efforts to take all other steps
necessary to effect the registration of the Securities covered by a Registration Statement
contemplated hereby.

     4. Registration Expenses. The Company shall bear all fees and expenses incurred in
connection with the performance of its obligations under Sections 1 through 3 hereof (including the
reasonable fees and expenses, if any, of Cravath, Swaine & Moore LLP, counsel for the Initial
Purchasers, incurred in connection with the Registered Exchange Offer), whether or not the
Registered Exchange Offer or a Shelf Registration is filed or becomes effective, and, in the event
of a Shelf Registration, shall bear or reimburse the Holders of the Securities covered thereby for
the reasonable fees and disbursements of one firm of counsel designated by the Holders of a
majority in aggregate principal amount of the Initial Securities covered thereby to act as counsel
for the Holders of the Initial Securities in connection therewith.

     5. Indemnification. (a) The Issuer and the Guarantors, jointly and severally, agree to
indemnify and hold harmless each Holder, any Participating Broker-Dealer and each person, if any,
who controls such Holder or such Participating Broker-Dealer within the meaning of the Securities
Act or the Exchange Act (each Holder, any Participating Broker-Dealer and such controlling persons
are referred to collectively as the “Indemnified Parties”) from and against any losses, claims,
damages or liabilities, joint or several, or any actions in respect thereof (including, but not
limited to, any losses, claims, damages, liabilities or actions relating to purchases and sales of
the Securities) to which each Indemnified Party may become subject under the Securities Act, the
Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise
out of or are based upon any untrue statement or alleged untrue statement of a material fact
contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in
any preliminary prospectus or “issuer free writing prospectus,” as defined in Commission Rule 433
(“Issuer FWP”), relating to a Shelf Registration, or arise out of, or are based upon, the omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading, and shall reimburse, as incurred, the Indemnified
Parties for any reasonable legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action in respect thereof;
provided, however, that (i) the Issuer and the Guarantors shall not be liable in
any such case to an Indemnified Party to the extent that such loss, claim, damage or liability
arises out of or is based upon any untrue statement or alleged untrue statement or omission or
alleged omission made in a Registration Statement or prospectus or in any amendment or supplement
thereto or in any preliminary prospectus or Issuer FWP relating to a Shelf Registration in reliance
upon and in conformity with written information pertaining to such Indemnified Party and furnished
to the Company by or on behalf of such Indemnified Party specifically for inclusion therein and
(ii) with respect to any untrue statement or omission or alleged untrue statement or omission made
in any preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement
contained in this subsection (a) shall not inure to the benefit of any Holder or Participating
Broker-Dealer from whom the person asserting any such losses, claims, damages or liabilities
purchased the Securities concerned, to the extent that a prospectus relating to such Securities was
required to be delivered (including through satisfaction of the conditions of Commission Rule 172)
by such Holder or Participating Broker-Dealer under the Securities Act in connection with such
purchase and any such loss, claim, damage or liability of such Holder or Participating
Broker-Dealer results from the fact that there was not conveyed to such person, at or prior to the
time of the sale of such Securities to such person, an amended or supplemented prospectus or, if
permitted by Section 3(d), an Issuer FWP correcting such untrue statement or omission or alleged
untrue statement or omission if the Company had previously furnished copies thereof to such Holder
or Participating Broker-Dealer; provided further, however, that this
indemnity agreement will be in addition to any liability which the Issuer or the Guarantors may
otherwise have to

11

 

such Indemnified Party. The Issuer and the Guarantors shall also, jointly and
severally, indemnify underwriters, their officers and directors and each person who controls such
underwriters within the meaning of the
Securities Act or the Exchange Act to the same extent as provided above with respect to the
indemnification of the Holders if requested by such Holders.

     (b) Each Holder, severally and not jointly, will indemnify and hold harmless the Issuer and
the Guarantors and each person, if any, who controls the Issuer and the Guarantors within the
meaning of the Securities Act or the Exchange Act from and against any losses, claims, damages or
liabilities or any actions in respect thereof to which the Issuer, the Guarantors or any such
controlling person may become subject under the Securities Act, the Exchange Act or otherwise,
insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any
untrue statement or alleged untrue statement of a material fact contained in a Registration
Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus
or Issuer FWP relating to a Shelf Registration, or arise out of or are based upon the omission or
alleged omission to state therein a material fact necessary to make the statements therein not
misleading but in each case only to the extent that the untrue statement or omission or alleged
untrue statement or omission was made in reliance upon and in conformity with written information
pertaining to such Holder and furnished to the Company by or on behalf of such Holder specifically
for inclusion therein; and, subject to the limitation set forth immediately preceding this clause,
shall reimburse, as incurred, the Issuer and the Guarantors for any legal or other expenses
reasonably incurred by the Issuer, the Guarantors or any such controlling person in connection with
investigating or defending any loss, claim, damage, liability or action in respect thereof. This
indemnity agreement will be in addition to any liability which such Holder may otherwise have to
the Issuer, the Guarantors or any of their respective controlling persons.

     (c) Promptly after receipt by an indemnified party under this Section 5 of notice of the
commencement of any action or proceeding (including a governmental investigation), such indemnified
party will, if a claim in respect thereof is to be made against the indemnifying party under this
Section 5, notify the indemnifying party of the commencement thereof; provided that the
failure to notify the indemnifying party shall not relieve the indemnifying party from any
liability that it may have under subsection (a) or (b) above except to the extent that it has been
materially prejudiced (through the forfeiture of substantive rights or defenses) by such failure;
provided further that the failure to notify the indemnifying party shall not
relieve it from any liability that it may have to an indemnified party otherwise than under
subsection (a) or (b) above. In case any such action is brought against any indemnified party, and
it notifies the indemnifying party of the commencement thereof, the indemnifying party will be
entitled to participate therein and, to the extent that it may wish, jointly with any other
indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent of the indemnified
party, be counsel to the indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party will not
be liable to such indemnified party under this Section 5 for any legal or other expenses, other
than reasonable costs of investigation, subsequently incurred by such indemnified party in
connection with the defense thereof. No indemnifying party shall, without the prior written
consent of the indemnified party, effect any settlement of any pending or threatened action in
respect of which any indemnified party is or could have been a party and indemnity could have been
sought hereunder by such indemnified party unless such settlement (i) includes an unconditional
release of such indemnified party from all liability on any claims that are the subject matter of
such action and (ii) does not include a statement as to or an admission of fault, culpability or a
failure to act by or on behalf of any indemnified party.

     (d) If the indemnification provided for in this Section 5 is unavailable or insufficient to
hold harmless an indemnified party under subsections (a) or (b) above, then each indemnifying party
shall

12

 

contribute to the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities (or actions in respect thereof) referred to in subsection (a) or (b)
above (i) in such proportion as is appropriate to reflect the relative benefits received by the
indemnifying party or parties on
the one hand and the indemnified party on the other from the exchange of the Securities, pursuant
to the Registered Exchange Offer, or (ii) if the allocation provided by the foregoing clause (i) is
not permitted by applicable law, in such proportion as is appropriate to reflect not only the
relative benefits referred to in clause (i) above but also the relative fault of the indemnifying
party or parties on the one hand and the indemnified party on the other in connection with the
statements or omissions that resulted in such losses, claims, damages or liabilities (or actions in
respect thereof) as well as any other relevant equitable considerations. The relative fault of the
parties shall be determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information supplied by the Company on the one hand or such Holder or such other
indemnified party, as the case may be, on the other, and the parties’ relative intent, knowledge,
access to information and opportunity to correct or prevent such statement or omission. The amount
paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to
in the first sentence of this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating or defending any
action or claim which is the subject of this subsection (d). Notwithstanding any other provision
of this Section 5(d), the Holders shall not be required to contribute any amount in excess of the
amount by which the net proceeds received by such Holders from the sale of the Securities pursuant
to a Registration Statement exceeds the amount of damages which such Holders have otherwise been
required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who
controls such indemnified party within the meaning of the Securities Act or the Exchange Act shall
have the same rights to contribution as such indemnified party, and each person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange Act shall have the
same rights to contribution as the Company.

     (e) The agreements contained in this Section 5 shall survive the sale of the Securities
pursuant to a Registration Statement and shall remain in full force and effect, regardless of any
termination or cancellation of this Agreement or any investigation made by or on behalf of any
indemnified party.

     6. Additional Interest Under Certain Circumstances. (a) If any Transfer Restricted
Securities other than Exchange Securities remain outstanding on the date falling 400 days after the
Issue Date, additional interest (the “Additional Interest”) with respect to the Initial Securities
or the Exchange Securities, as applicable, shall be assessed as follows if any of the following
events occur (each such event in clauses (i) through (vi) below a “Registration Default”):

     (i) if the Company fails to file an Exchange Offer Registration Statement with the
Commission on or prior to the 400th day after the Issue Date;

     (ii) if the Exchange Offer Registration Statement has been filed, but is not declared
effective by the Commission on or prior to the 490th day after the Issue Date;

     (iii) if the Registered Exchange Offer is not consummated on or before the 30th business
day after the Exchange Offer Registration Statement is declared effective;

     (iv) if obligated to file the Shelf Registration Statement pursuant to the provisions of
Section 2 hereof, the Company fails to file the Shelf Registration Statement with the Commission
on or prior to

13

 

the 30th day (the “Shelf Filing Date”) after the date on which the obligation to
file a Shelf Registration Statement arises (but no earlier than 400 days after the Issue Date),

     (v) if obligated to file a Shelf Registration Statement pursuant to the provisions of
Section 2 hereof, the Shelf Registration Statement is not declared effective on or prior to the
90th day after the Shelf Filing Date (but no earlier than 490 days after the Issue Date); or

     (vi) if required to be filed pursuant to the provisions of Section 1 or Section 2 hereof,
after the Registration Statement is declared (or becomes automatically) effective, such
Registration Statement thereafter ceases to be (A) effective or (B) usable (except, in the
latter case, as permitted in paragraph (b) of this Section 6) in connection with resales of
Transfer Restricted Securities during the periods specified herein because either (1) any event
occurs as a result of which the related prospectus forming part of such Registration Statement
would include any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein in the light of the circumstances under which they were
made not misleading, (2) it shall be necessary to amend such Registration Statement or
supplement the related prospectus to comply with the Securities Act or the Exchange Act or the
respective rules thereunder, or (3) such Registration Statement is a Shelf Registration
Statement that has expired before a replacement Shelf Registration Statement has become
effective.

Additional Interest shall accrue on the Initial Securities or the Exchange Securities, as
applicable, over and above the interest set forth in the title of the Securities from and including
the date on which any Registration Default shall occur to but excluding the date on which all such
Registration Defaults have been cured, at a rate of 0.25% per annum for the first 90-day period
immediately following the occurrence of a Registration Default, and such rate will increase by an
additional 0.25% per annum with respect to each subsequent 90-day period until all Registration
Defaults have been cured, up to a maximum additional interest rate of 1.00% per annum. The Company
shall be required to pay Additional Interest with respect to only one Registration Default at a
time, regardless of how many Registration Defaults have occurred and are continuing.

     (b) A Registration Default referred to in Section 6(a)(vi)(B) hereof shall be deemed not to
have occurred and be continuing in relation to a Shelf Registration Statement or the related
prospectus if (A) (i) such Registration Default has occurred solely as a result of (x) the filing
of a post-effective amendment to such Shelf Registration Statement to incorporate annual audited
financial information with respect to the Company where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the related prospectus or (y)
other material events with respect to the Company that would need to be described in such Shelf
Registration Statement or the related prospectus and (ii) in the case of clause (y), the Company is
proceeding promptly and in good faith to amend or supplement such Shelf Registration Statement and
related prospectus to describe such events or (B) the Company has provided a Suspension Notice
pursuant to Section 3(j) hereof on the basis of a determination pursuant to the second sentence of
such Section 3(j) with respect to such Shelf Registration Statement or related prospectus (any such
Suspension Notice a “Determination Suspension Notice”), so long as (x) the Company does not suspend
such Shelf Registration Statement pursuant to a Determination Suspension Notice more than twice in
any period of 12 consecutive months, (y) no such suspension exceeds 60 days and (z) such
suspensions do not exceed 90 days in the aggregate in any consecutive twelve month period;
provided, however, that, in the case of clause (A), if such Registration Default
occurs for a continuous period in excess of 45 days, Additional Interest shall be payable in
accordance with the above paragraph from the day such Registration Default occurs until such
Registration Default is cured.

     (c) Any amounts of Additional Interest due pursuant to any of clauses (i) through (vi) of
Section 6(a) above will be payable in cash on the regular interest payment dates with respect to
the Initial

14

 

Securities. The amount of Additional Interest will be determined by multiplying the
applicable Additional Interest rate by the principal amount of the Initial Securities or the
Exchange Securities, as applicable, multiplied by a fraction, the numerator of which is the number
of days such Additional Interest rate was applicable during
such period (determined on the basis of a 360-day year comprised of twelve 30-day months) and the
denominator of which is 360.

     (d) “Transfer Restricted Securities” means each Security until (i) the date on which such
Transfer Restricted Security has been exchanged by a person other than a broker-dealer for a freely
transferable Exchange Security in the Registered Exchange Offer, (ii) following the exchange by a
broker-dealer in the Registered Exchange Offer of an Initial Security for an Exchange Security, the
date on which such Exchange Security is sold to a purchaser who receives from such broker-dealer on
or prior to the date of such sale a copy of the prospectus contained in the Exchange Offer
Registration Statement, (iii) the date on which such Initial Security has been effectively
registered under the Securities Act and disposed of in accordance with the Shelf Registration
Statement or (iv) the date on which such Security (A) may be sold to the public in accordance with
Rule 144 under the Securities Act by a person that is not an “affiliate” (as defined in Rule 144
under the Securities Act) of the Company where no conditions of Rule 144 are then applicable (other
than the holding period requirement in paragraph (d) of Rule 144 so long as such holding period
requirement is satisfied at such time of determination) and (B) either (x) does not bear any
restrictive legends relating to the Securities Act or (y) does not bear a restricted CUSIP number.

     7. Copies of this Agreement. The Company will provide a copy of this Agreement to
prospective purchasers of Initial Securities identified to the Company by the Initial Purchasers
upon written request.

     8. Underwritten Registrations. If any of the Transfer Restricted Securities covered by any
Shelf Registration are to be sold in an underwritten offering, the investment banker or investment
bankers and manager or managers that will administer the offering (“Managing Underwriters”) will be
selected by the Holders of a majority in aggregate principal amount of such Transfer Restricted
Securities to be included in such offering.

     No person may participate in any underwritten registration hereunder unless such person (i)
agrees to sell such person’s Transfer Restricted Securities on the basis reasonably provided in any
underwriting arrangements approved by the persons entitled hereunder to approve such arrangements
and (ii) completes and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such underwriting
arrangements.

     9. Miscellaneous.

     (a) Amendments and Waivers. The provisions of this Agreement may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not be given,
except by the Company and the written consent of the Holders of a majority in principal amount of
the Securities affected by such amendment, modification, supplement, waiver or consents.

     (b) Notices. All notices and other communications provided for or permitted hereunder shall
be made in writing by hand delivery, first-class mail, facsimile transmission or air courier which
guarantees overnight delivery:

(1) if to a Holder, at the most current address given by such Holder to the Company.

(2) if to the Initial Purchasers;

15

 

Credit Suisse Securities (USA) LLC

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.: (212) 325-4296

Attention: Transactions Advisory Group

     with a copy to:

Cravath, Swaine & Moore LLP

Worldwide Plaza

825 Eighth Avenue

New York, NY 10019

Fax No.: (212) 474-3700

Attention: Kris F. Heinzelman, Esq.

	 	(3)	 	if to the Company, at its address as follows:

Credit Acceptance Corporation

25505 West Twelve Mile Road

Southfield, MI 48034

Fax No.: (248) 827-8513

Attention: Douglas W. Busk

     with a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP

155 North Wacker Drive

Chicago, IL 60606

Fax No.: (312) 407-8626

Attention: Richard C. Witzel, Jr., Esq.

     All such notices and communications shall be deemed to have been duly given: at the time
delivered by hand, if personally delivered; three business days after being deposited in the mail,
postage prepaid, if mailed; when receipt is acknowledged by recipient’s facsimile machine operator,
if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier
guaranteeing next day delivery.

     (c) No Inconsistent Agreements. The Company has not, as of the date hereof, entered into,
nor shall it, on or after the date hereof, enter into, any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders herein or otherwise conflicts with the
provisions hereof.

     (d) Successors and Assigns. This Agreement shall be binding upon the Company and its
successors and assigns.

     (e) Counterparts. This Agreement may be executed in any number of counterparts and by the
parties hereto in separate counterparts, each of which when so executed (including by facsimile or
electronic image scan) shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement.

16

 

     (f) Headings. The headings in this Agreement are for convenience of reference only and shall
not limit or otherwise affect the meaning hereof.

     (g) Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS TO THE EXTENT
THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     (h) Severability. If any one or more of the provisions contained herein, or the application
thereof in any circumstance, is held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining provisions
contained herein shall not be affected or impaired thereby.

     (i) Securities Held by the Company. Whenever the consent or approval of Holders of a
specified percentage of principal amount of Securities is required hereunder, Securities held by
the Company or its affiliates (other than subsequent Holders of Securities if such subsequent
Holders are deemed to be affiliates solely by reason of their holdings of such Securities) shall
not be counted in determining whether such consent or approval was given by the Holders of such
required percentage.

     (j) Agent for Service; Submission to Jurisdiction; Waiver of Immunities. By the execution
and delivery of this Agreement, the Company (i) acknowledges that it has, by separate written
instrument, irrevocably designated and appointed the Issuer (and any successor entity), as its
authorized agent upon which process may be served in any suit or proceeding arising out of or
relating to this Agreement that may be instituted in any federal or state court in the State of New
York or brought under federal or state securities laws, and acknowledges that the Issuer has
accepted such designation, (ii) submits to the nonexclusive jurisdiction of any such court in any
such suit or proceeding and (iii) agrees that service of process upon the Issuer and written notice
of said service to the Company shall be deemed in every respect effective service of process upon
it in any such suit or proceeding. The Company further agrees to take any and all action,
including the execution and filing of any and all such documents and instruments, as may be
necessary to continue such designation and appointment of the Issuer in full force and effect so
long as any of the Securities shall be outstanding. To the extent that the Company may acquire any
immunity from jurisdiction of any court or from any legal process (whether through service of
notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with
respect to itself or its property, it hereby irrevocably waives such immunity in respect of this
Agreement, to the fullest extent permitted by law.

17

 

     If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the Company a counterpart hereof, whereupon this instrument, along with all counterparts,
will become a binding agreement among the several Initial Purchasers, the Issuer and the Guarantors
in accordance with its terms.

	 	 	 	 	 
	 	Very truly yours,

Credit Acceptance Corporation

 	 
	 	By:  	/s/ Douglas W. Busk
 	 
	 	 	Name:  	Douglas W. Busk 	 
	 	 	Title:  	Senior Vice President and Treasurer 	 
	 
	 	Buyers Vehicle Protection Plan, Inc.

 	 
	 	By:  	/s/ Douglas W. Busk
 	 
	 	 	Name:  	Douglas W. Busk 	 
	 	 	Title:  	Treasurer 	 
	 
	 	Vehicle Remarketing Services, Inc.

 	 
	 	By:  	/s/ Douglas W. Busk
 	 
	 	 	Name:  	Douglas W. Busk 	 
	 	 	Title:  	Treasurer 	 
	 

The foregoing Registration

Rights Agreement is hereby confirmed

and accepted as of the date first

above written.

Credit Suisse Securities (USA) LLC

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Andrew Rosenburgh
 	 
	 	 	Name:  	Andrew Rosenburgh 	 
	 	 	Title:  	Managing Director 	 
	 

Acting on behalf of itself and as the Representative

of the several Purchasers

18

 

ANNEX A

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. The Letter of Transmittal states that, by so acknowledging and by
delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act. This Prospectus, as it may be amended or supplemented
from time to time, may be used by a broker-dealer in connection with resales of Exchange Securities
received in exchange for Initial Securities where such Initial Securities were acquired by such
broker-dealer as a result of market-making activities or other trading activities. The Company has
agreed that, for a period of 180 days after the Expiration Date (as defined herein), it will make
this Prospectus available to any broker-dealer for use in connection with any such resale. See
“Plan of Distribution.”

 

 

ANNEX B

     Each broker-dealer that receives Exchange Securities for its own account in exchange for
Securities, where such Initial Securities were acquired by such broker-dealer as a result of
market-making activities or other trading activities, must acknowledge that it will deliver a
prospectus in connection with any resale of such Exchange Securities. See “Plan of Distribution.”

 

 

ANNEX C

PLAN OF DISTRIBUTION

     Each broker-dealer that receives Exchange Securities for its own account pursuant to the
Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Securities. This Prospectus, as it may be amended or supplemented from time to time,
may be used by a broker-dealer in connection with resales of Exchange Securities received in
exchange for Initial Securities where such Initial Securities were acquired as a result of
market-making activities or other trading activities. The Company has agreed that, for a period of
180 days after the Expiration Date, it will make this prospectus, as amended or supplemented,
available to any broker-dealer for use in connection with any such resale. In addition, until
        , 201 , all dealers effecting transactions in the Exchange Securities may be
required to deliver a prospectus.(1)

     The Company will not receive any proceeds from any sale of Exchange Securities by
broker-dealers. Exchange Securities received by broker-dealers for their own account pursuant to
the Exchange Offer may be sold from time to time in one or more transactions in the
over-the-counter market, in negotiated transactions, through the writing of options on the Exchange
Securities or a combination of such methods of resale, at market prices prevailing at the time of
resale, at prices related to such prevailing market prices or negotiated prices. Any such resale
may be made directly to purchasers or to or through brokers or dealers who may receive compensation
in the form of commissions or concessions from any such broker-dealer or the purchasers of any such
Exchange Securities. Any broker-dealer that resells Exchange Securities that were received by it
for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a
distribution of such Exchange Securities may be deemed to be an “underwriter” within the meaning of
the Securities Act, and any profit on any such resale of Exchange Securities and any commission or
concessions received by any such persons may be deemed to be underwriting compensation under the
Securities Act. The Letter of Transmittal states that, by acknowledging that it will deliver and
by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an “underwriter”
within the meaning of the Securities Act.

     For a period of 180 days after the Expiration Date, the Company will promptly send
additional copies of this Prospectus and any amendment or supplement to this Prospectus to
any broker-dealer that requests such documents in the Letter of Transmittal. The Company
has agreed to pay all expenses incident to the Exchange Offer (including the expenses of
one counsel for the Holders) other than commissions or concessions of any brokers or
dealers and will indemnify the Holders (including any broker-dealers) against certain
liabilities, including liabilities under the Securities Act.

 

			
	(1)	 	In addition, the legend required by
Item 502(e) of Regulation S-K will appear on the back cover page of the
Exchange Offer prospectus.

 

 

ANNEX D

o      CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS
AND 10 COPIES OF ANY AMENDMENTS OR SUPPLEMENTS THERETO.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in,
and does not intend to engage in, a distribution of Exchange Securities. If the undersigned is a
broker-dealer that will receive Exchange Securities for its own account in exchange for Initial
Securities that were acquired as a result of market-making activities or other trading activities,
it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange
Securities; however, by so acknowledging and by delivering a prospectus, the undersigned will not
be deemed to admit that it is an “underwriter” within the meaning of the Securities Act.

 

 

Schedule I

Initial Purchasers

Credit Suisse Securities (USA) LLC

Comerica Securities, Inc.

BMO Capital Markets Corp.

Fifth Third Securities, Inc.

RBS Securities Inc.exv4wfw131

Exhibit 4(f)(131)

EXECUTION COPY

NINTH AMENDMENT TO THE

FOURTH AMENDED AND RESTATED CREDIT AGREEMENT

          This Ninth Amendment to the Fourth Amended and Restated Credit Agreement (“Ninth Amendment”)
is made as of February 1, 2010 by and among Credit Acceptance Corporation, a Michigan corporation
(“Company”), Comerica Bank and the other banks signatory hereto (individually, a “Bank” and
collectively, the “Banks”) and Comerica Bank, as administrative agent for the Banks (in such
capacity, “Agent”).

RECITALS

	A.	 	Company, Agent and the Banks entered into that certain Fourth Amended and Restated Credit
Acceptance Corporation Credit Agreement dated as of February 7, 2006 (as amended by the First
Amendment dated September 20, 2006, Second Amendment dated January 19, 2007, Third Amendment
dated June 14, 2007, Fourth Amendment dated as of January 25, 2008, Fifth Amendment dated July
31, 2008, Sixth Amendment dated as of December 9, 2008, Seventh Amendment dated as of June 15,
2009, Eighth Amendment dated October 20, 2009, and as may be further amended or otherwise
modified from time to time, the “Credit Agreement”) under which the Banks renewed and extended
(or committed to extend) credit to the Company, as set forth therein.
	 
	B.	 	The Company has requested that Agent and the Banks agree to certain amendments to the Credit
Agreement and Agent and the Banks are willing to do so, but only on the terms and conditions
set forth in this Ninth Amendment.

          NOW, THEREFORE, Company, Agent and the Banks agree:

          1. Section 1 of the Credit Agreement is hereby amended as follows:

(a) The following definitions are hereby amended and restated in their entirety as
follows:

“Affiliate” shall mean, with respect to any Person, any other Person (a)
that directly or indirectly through one or more intermediaries Controls, or
is Controlled by, or is under common Control with, such Person; (b) that
beneficially owns or holds five percent (5%) or more of any class of the
voting stock of such Person; (c) five percent (5%) or more of the voting
stock (or in the case of a Person that is not a corporation, five percent
(5%) or more of the equity interest) of which is beneficially owned or held
by such Person or a Subsidiary; or (d) that is an officer or director (or a
member of the immediate family of an officer or director) of such Person or
any of such Person’s Subsidiaries. As used in this definition, “Control”
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.”

 

 

“Agent” shall mean Comerica Bank, a Texas banking association in its
capacity as administrative agent for the Bank, pursuant to Section 12.1
hereof and/or in its capacity as collateral agent for the Secured Parties
(as defined in the Intercreditor Agreement) pursuant to Article IV of the
Intercreditor Agreement, as the context may require, and any successor
administrative agent appointed in accordance with Section 12.4 hereof or any
successor collateral agent appointed in accordance with Section 4.06 of the
Intercreditor Agreement, as applicable.

“Borrowing Base Limitation” shall mean, as of any date of determination, an
amount equal to (i) eighty percent (80%) of Dealer Loans Receivable, with
respect to Dealer Loans of the Company and its Significant Domestic
Subsidiaries then Constituting Collateral securing the Indebtedness plus
(ii) eighty percent (80%) of the Purchased Contract Balance in respect of
Purchased Contracts of the Company and its Significant Domestic Subsidiaries
then constituting Collateral securing the Indebtedness, minus (iii) the
Hedging Reserve and minus (iv) the aggregate principal amount outstanding
from time to time of any Debt (other than the Indebtedness) secured by any
of the Collateral; provided, however, that if, at any time, (a) the advance
rates under any Securitization Transaction (other than a Bridge
Securitization), as determined under the related Securitization Documents
(“Securitization Advance Rates”), are more than ten percentage points, or
in the case of the Securitization Advance Rates applicable to the Designated
Securitization, sixteen percentage points, lower than the applicable advance
rates expressed in clauses (i) or (ii) of this definition (“Credit Agreement
Advance Rates”), or (b) the stated advance rates under any Future Debt set
forth in the related Future Debt Documents (“Future Debt Advance Rates”) are
lower than the Credit Agreement Advance Rates then, the applicable Credit
Agreement Advance Rates shall be deemed to be automatically reduced to the
lowest Securitization Advance Rates or Future Debt Advance Rates, as the
case may be, then in effect, such reduction to remain in effect so long as
the Securitization Advance Rates or Future Debt Advance Rates, as
applicable, are lower than the Credit Agreement Advance Rates set forth in
this definition. At no time, however, shall the Credit Agreement Advance
Rates exceed eighty percent (80%).

“Collateral” shall mean (a) all right, title and interest of each of the
Company and each of its Significant Domestic Subsidiaries in, to and under
its accounts, inventory, machinery, equipment, contract rights, chattel
paper, general intangibles, including without limitation Dealer Loans,
Dealer Loan Pools, Dealer Agreements (and any amounts advanced to or liens
granted by Dealers thereunder), Installment Contracts, leases and related
financial assets (such Dealer Agreements, Dealer Loans, Dealer Loan Pools
and the Installment Contracts, accounts, contract rights, chattel paper,
leases and general intangibles relating to such Dealer Agreements, Dealer
Loans, and Dealer Loan

2

 

Pools being subject to the rights, if any, of Dealers under Dealer
Agreements), Intercompany Notes and computer records and software relating
thereto, whether now owned or hereafter acquired by such Person, (b) one
hundred percent (100%) of the share capital of each Significant Domestic
Subsidiary of the Company (whether direct or indirect), (c) all other
property or rights in which a security interest, mortgage, lien or other
encumbrance for the benefit of the Banks is or has been granted or arises or
has arisen, under or in connection with this Agreement, the Collateral
Documents or any of the Other Loan Documents, or otherwise, and (d) all
proceeds and products of the foregoing.

“Collateral Documents” shall mean (i) that certain Fourth Amended and
Restated Security Agreement dated as of the Ninth Amendment Effective Date
and executed and delivered by Company and the other Subsidiary debtors
signatory thereto in favor of the Agent, as Collateral Agent pursuant to the
Intercreditor Agreement (as amended, the “Security Agreement”), and
encumbering the property described therein, and (ii) all other security
documents (including, without limitation, financing statements, stock
powers, acknowledgments, registrations, joinders and the like) executed by
the Company or any of its Subsidiaries and delivered to the Agent, as
Collateral Agent (as aforesaid), as of the date thereof or, from time to
time, subsequent thereto in connection with such security documents, this
Agreement or the other Loan Documents, as such security documents may be in
each case amended or further amended (subject to the Intercreditor
Agreement) from time to time.

“Funding Conditions” shall mean those conditions required to be satisfied
prior to or concurrently with the funding of any Future Debt, as follows:

(a) Within a period of one hundred eighty (180) days prior to the date any
such Debt is incurred, Company shall have provided to the Agent and the
Banks a Consolidated plan and financial projections meeting the requirements
therefor as set forth in Section 7.3(i) of this Agreement and demonstrating
that the Company would be in compliance with the financial covenants set
forth in Sections 7.4 through 7.7 hereof and the Borrowing Base Limitation,
if applicable, were such Debt outstanding during the applicable reporting
periods;

(b) Both immediately before and immediately after such additional Debt is
incurred, no Default or Event of Default (whether or not related to such
additional Debt, and taking into account the incurring of such additional
Debt) has occurred and is continuing;

(c) If such additional Future Debt (other than the Senior Notes, as in
effect on the date hereof) shall be issued pursuant to loan documents

3

 

containing covenants which are more restrictive than the covenants contained
in this Agreement, Company shall, upon the written request of the Majority
Banks, enter into amendments to this Agreement to extend the benefit of such
covenants to the Banks; and any such additional Future Debt shall not be
issued under a “Supplemental Credit Agreement” (as defined in the
Intercreditor Agreement);

(d) Concurrently with the incurring of such additional Future Debt, the
proceeds of such Future Debt, net of third party expenses incurred by the
Company in connection with the issuance of such Future Debt, shall first be
applied to reduce principal, interest and other amounts owing under the
Revolving Credit (to the extent then outstanding, and including the
aggregate amount of drawings made under any Letter of Credit for which the
Agent has not received full payment), subject to the right to reborrow in
accordance with this Agreement; provided, however, that to the extent that
on the date any reduction of the principal balance outstanding under the
Revolving Credit shall be required under this clause (d), the Indebtedness
under the Revolving Credit is being carried, in whole or in part, at the
Eurodollar-based Rate and no Default or Event of Default has occurred and is
continuing, the Company may, after prepaying that portion of the
Indebtedness then carried at the Prime-based Rate, deposit the amount of
such required principal reductions in a cash collateral account to be held
by the Agent, for and on behalf of the Banks (which shall be an
interest-bearing account), on such terms and conditions as are reasonably
acceptable to Agent and the Majority Banks and, subject to the terms and
conditions of such cash collateral account, sums on deposit therein shall be
applied (until exhausted) to reduce the principal balance of the Revolving
Credit on the last day of each Interest Period attributable to the
applicable Eurodollar-based Advances of the Revolving Credit (subject to the
right to reborrow, as aforesaid); and provided further that Agent and the
Banks acknowledge that any proceeds of Future Debt remaining after the
application of such proceeds as required by this clause (d) may be held or
invested in Permitted Investments or otherwise invested or applied in any
manner not prohibited by this Agreement; and

(e) If such additional Future Debt is to be secured, the applicable Lien
shall arise only pursuant to the Security Agreement and/or the other
Collateral Documents and each of the holders of such Future Debt (or any
agent, trustee or other representative acting on behalf of such holders)
shall become a party to the Intercreditor Agreement and shall execute and
deliver such additional or related Loan Documents, as reasonably requested
by the Agent.

“Future Debt” shall mean Debt evidenced by the Senior Notes (and any
guaranties thereof permitted hereunder) and Long Term Notes; provided that
the aggregate principal amount of all such Debt outstanding at any

4

 

time from and after the date hereof shall not exceed Five Hundred Million
Dollars ($500,000,000); and provided further that, at the time any such Debt
is incurred, the Funding Conditions have been satisfied. For the purposes
of this definition, “Long Term Notes” shall mean unsecured or secured
non-revolving promissory notes to be issued by the Company (and any
guaranties thereof permitted hereunder), which Debt shall have a term
extending at least beyond the Revolving Credit Maturity Date in effect at
the time of the incurrence of such Debt, have an amortization schedule not
greater than level amortization to maturity (but with no principal payments
required for a period of at least 12 months) and have no requirement for
mandatory early repayment except (x) upon default, (y) following a change in
control or (z) following the sale of any portion of the assets of the
Company or any of its Subsidiaries (other than pursuant to a Securitization
Transaction) , to the extent of the proceeds of such sale.

“Future Debt Documents” shall mean promissory note(s) (including, without
limitation, the Senior Notes), guaranty(ies), agreement(s) or other
documents, instruments, indenture(s) (including, without limitation, the
Senior Note Documents) and certificates executed and delivered, subject to
the terms of this Agreement, to evidence or secure (or otherwise relating
to) Future Debt, as the same may be amended from time to time and any and
all other documents executed in exchange therefor or replacement or renewal
thereof.

“Intercompany Note” shall mean the master promissory note substantially in
the form of Exhibit N, attached hereto, issued or to be issued by the
Company or any Subsidiary to evidence an Intercompany Loan.

“Lenders” shall mean the Banks and the other Secured Parties (as defined in
the Intercreditor Agreement).

“Letter of Credit Obligation(s)” shall mean as of the date of determination,
the sum of (a) the aggregate undrawn amount of all Letters of Credit then
outstanding and (b) the aggregate amount of Reimbursement Obligations which
remain unpaid as of such date.

“Permitted Guaranties” shall mean (i) any Guarantee Obligation provided by
the Company, for the benefit of a Subsidiary, covering the Debt or other
obligation or liability permitted to be incurred or entered into by such
Subsidiary, and any other Guarantee Obligation of the Company in the
ordinary course of business, (ii) any guaranties provided by a Significant
Domestic Subsidiary of the Company of the Debt outstanding to any of the
other Lenders, provided that concurrently with the giving of any such
guaranty, such Subsidiary shall (if it has not done so prior to such date)
enter into a Guaranty on substantially similar terms for the benefit of the
Banks or (iii) any agreement or other undertaking by

5

 

the Company, as servicer or administrative agent of the Dealer Loan Pools or
Purchased Contracts covered by a Permitted Securitization, to advance funds
equal to the interest component of obligations issued as part of a Permitted
Securitization and payable from collections on the related Installment
Contracts, such payments to be repayable to Company on a priority basis from
such collections, sales or other dispositions, provided that the aggregate
amount of such advances under this clause (iii) at any time outstanding
shall not exceed $1,500,000 and (iv) other Guarantee Obligations of the
Company or any of the Subsidiaries in an aggregate amount not to exceed, at
any time outstanding, $1,000,000.

“Permitted Prepayment” shall mean any prepayment of Future Debt (x) which is
funded solely with the proceeds of (i) new cash equity in the form of
nonconvertible common shares, (ii) Subordinated Debt, or (iii) substitute
Debt permitted hereunder which satisfies the following conditions:

(a) such Debt shall have a term extending at least beyond the Revolving
Credit Maturity Date then in effect, with an amortization schedule not
greater than level amortization to maturity (but with no principal payments
required for a period of at least 12 months) and with no provision for
mandatory early repayment except (x) upon default, (y) following a change in
control or (z) following the sale of any portion of the assets of the
Company or any of its Subsidiaries (other than pursuant to a Securitization
Transaction), in an amount not to exceed the proceeds of such sale;

(b) such Debt shall be unsecured, or, subject to the Intercreditor
Agreement, secured;

(c) both immediately before and immediately after such additional Debt is
incurred, no Default or Event of Default (whether or not related to such
additional Debt, and taking into account the incurring of such additional
Debt) has occurred and is continuing; and

(d) if such additional Debt shall be issued pursuant to loan documents
containing covenants which are more restrictive than the covenants contained
in this Agreement, Company shall, upon the written request of the Majority
Banks, enter into amendments to this Agreement to extend the benefit of such
covenants to the Banks.

in each case, issued concurrently with such prepayment or (y) which has been
approved by the Majority Banks. Solely for purposes of the definition of
Permitted Prepayment, any Bank which fails, within fifteen (15) Business
Days of receipt of written notice from the Company of its intent to make
such prepayment (identifying the Debt to be prepaid, and the amount of any
such prepayment, captioned “notice of prepayment” and

6

 

stating that approval is deemed to be given if an objection is not made
within fifteen (15) Business Days of receipt of such notice), to object in
writing to the Company’s proposed prepayment shall be deemed to have
approved such prepayment.

“Revolving Credit Maximum Amount” shall mean the aggregate of the Revolving
Credit Commitments of the Banks as set forth on Exhibit D hereto, subject to
any increases in the Revolving Credit Maximum Amount pursuant to Section
2.17 of this Agreement, by an amount not to exceed the Revolving Credit
Optional Increase, and subject to any reductions or termination of the
Revolving Credit Maximum Amount under Sections 2.15 or 9.2 of this
Agreement; provided, however, that in no event shall the Revolving Credit
Maximum Amount hereunder at any time exceed Two Hundred Million Dollars
($200,000,000).

“Significant Subsidiar(ies)” shall mean, as of any date of determination,
any Subsidiary (i) which is designated by the Company (in writing to Agent)
as a Significant Subsidiary or (ii) which has total assets (but excluding in
the calculation of total assets, for any Subsidiary, any assets which
constitute Intercompany Loans, Advances and Investments by such Subsidiary
to Company outstanding from time to time and any assets which are acquired
or arise pursuant to a Permitted Securitization, including any equity
interest in a Special Purpose Subsidiary) in excess of two percent (2%) of
Company’s Consolidated Tangible Net Worth (or five percent (5%) in the case
of CAC Reinsurance, Ltd.), determined as of the end of each fiscal quarter
based upon the financial statements required to be delivered under Section
7.3(b) or 7.3(c) hereof, as the case may be (and giving effect to any
changes in net worth shown in such financial statements on the required date
of delivery thereof); provided however that, whether or not it satisfies the
aforesaid net worth test, none of any Special Purpose Subsidiary, the
Scottish Partnership, the US LLC (so long as it is considered a Foreign
Subsidiary hereunder), or the Luxembourg Subsidiary shall be a Significant
Subsidiary and the Domestic Reinsurance Subsidiary shall be considered a
Significant Subsidiary solely for purposes of Section 7.20(a)(ii) hereof and
not for any other purpose.

(b) The following new definitions are hereby inserted in appropriate alphabetical
order:

“Defaulting Bank” shall mean a Bank which, in the reasonable determination
of the Agent (a) has failed to fund its Percentage of any Advance or to
purchase participations in a Swing Line Advance or any Reimbursement
Obligations as required under this Agreement for a period of two (2)
Business Days, unless such Bank is disputing its funding obligation in good
faith, (b) has otherwise failed to pay to the Agent or any other Bank any
other amount required to be paid by it under the terms of this Agreement or
any other Loan Document for a period of two (2)

7

 

Business Days, unless such Bank is disputing such obligation to pay any such
amount in good faith, (c) has been, or whose holding company has been,
determined to be insolvent or that has become subject to a bankruptcy,
receivership or other similar proceeding, or (d) has had a substantial
portion of its assets or management (or a substantial portion of the assets
or management of its holding company) taken over by any governmental
authority or any governmental authority has restricted its ability to act
under this Agreement, including its ability to enter into amendments,
waivers or modifications of this Agreement or any of the other Loan
Documents (provided that the exercise of the customary rights of a
shareholder by a governmental authority which owns shares in such Bank (or
its holding company) shall not be covered by this clause (d)), provided,
however, in all cases that a Defaulting Bank shall no longer be deemed a
Defaulting Bank when (i) the Defaulting Bank shall have cured the conditions
which shall have caused it to be a Defaulting Bank hereunder and (ii) the
Agent has agreed that such Bank shall no longer be deemed a Defaulting Bank
hereunder.

“Defaulting Bank’s Unfunded Portion” shall mean such Defaulting Bank’s
Revolving Credit Percentage of the Revolving Credit Aggregate Commitment
minus the sum of (a) the aggregate principal amount of all Revolving Credit
Advances funded by the Defaulting Bank under the Revolving Credit, plus (b)
such Defaulting Bank’s Revolving Credit Percentage of the aggregate
outstanding principal amount of all Swing Line Advances and Letter of Credit
Obligations.

“Eligible Assignee” shall mean (a) a Bank; (b) an Affiliate of a Bank; (c)
any Person (other than a natural person) that is engaged in the business of
making, purchasing, holding or otherwise investing in commercial revolving
loans in the ordinary course of its business, provided that such Person is
administered or managed by a Bank, an Affiliate of a Bank or an entity or
Affiliate of an entity that administers or manages a Bank; or (d) any other
Person (other than a natural person) approved by the (i) Agent (and in the
case of an assignment of a commitment under the Revolving Credit, the
Issuing Bank and Swing Line Bank), and (ii) unless a Event of Default has
occurred and is continuing or such assignment or participation is to an
Affiliate of the assigning Bank, any other Bank or any Federal Reserve Bank,
the Company (each such approval not to be unreasonably withheld or delayed);
provided that (x) notwithstanding the foregoing, “Eligible Assignee” shall
not include the Company, or any of the Company’s Affiliates or Subsidiaries;
and (y) and no assignment shall be made to an Impaired Bank without the
consent of the Agent, and in the case of an assignment of a commitment under
the Revolving Credit, the Issuing Bank and the Swing Line Bank.

“Impaired Bank” means a Defaulting Bank and any other Bank (a) which the
Agent, the Issuing Bank or Swing Line Bank believes, in good faith,

8

 

has defaulted (and continues to be in default) in fulfilling its obligations
under any other syndicated credit facilities or as a participant in any
other credit facility and such Bank is not in good faith disputing that such
a failure has occurred, or (b) which, if carrying an investment grade rating
of at least BBB- from S&P or Baa3 from Moody’s at the time it became a
party to this Agreement, no longer carries a rating of at least BBB- from
S&P or Baa3 from Moody’s, provided, however, in all cases that an Impaired
Bank shall no longer be deemed an Impaired Bank when (i) the Impaired Bank
shall have cured the conditions which shall have caused it to be an Impaired
Bank hereunder and (ii) the Agent has agreed that such Bank shall no longer
be deemed an Impaired Bank hereunder.

“Ninth
Amendment Effective Date” shall mean February 1, 2010.

“Non-Defaulting Bank” shall mean any Bank that is not, as of the relevant
date, a Defaulting Bank.

“Register” is defined in Section 13.8 hereof.

“Reimbursement Obligation(s)” shall mean the aggregate amount of all
unreimbursed drawings under all Letters of Credit (excluding for the
avoidance of doubt, reimbursement obligations that are deemed satisfied
pursuant to a deemed disbursement under Section 3.6(a)).

“Senior Notes” shall mean the senior secured notes evidencing secured Debt
incurred by the Company in an original principal amount of up to
$250,000,000 due not sooner than 2017 issued pursuant to the Senior Note
Documents.

“Senior Note Documents” shall mean that certain indenture, among the
Company, the Guarantors identified therein and U.S. Bank National
Association as Trustee (the “Indenture”) and all other instruments,
agreements and other documents evidencing or governing the Senior Notes or
providing any guarantee, Lien or other rights in respect thereof, as each
may be amended or otherwise modified from time to time.

“Wells Fargo Warehouse Securitization” shall mean the securitization
transaction under that certain Third Amended and Restated Loan and Security
Agreement dated as of August 24, 2009, as amended among CAC Warehouse
Funding Corporation II, the Company, Wachovia Bank, National Association,
Variable Funding Capital Company LLC, Wells Fargo Securities, Wells Fargo
Bank National Association and the other parties from time to time party
thereto, and the documents related thereto, as amended from time to time.

          2. Section 2.2 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

9

 

“2.2 Accrual of Interest and Maturity. The Revolving Credit
Advances, the Revolving Credit Notes, and all principal and interest
outstanding thereunder, shall mature and become due and payable in full on
the Revolving Credit Maturity Date, and each Advance of Indebtedness
evidenced by the Revolving Credit Notes from time to time outstanding
hereunder shall, from and after the date of such Advance, bear interest at
its Applicable Interest Rate. The Agent shall maintain the Register
pursuant to Section 13.8(g), and a subaccount therein for each Bank, in
which Register and subaccounts (taken together) shall be recorded (i) the
amount of each Advance made hereunder, the type thereof and each
Eurodollar-Interest Period applicable to any Eurodollar-based Advance, (ii)
the amount of any principal or interest due and payable or to become due and
payable from Company to each Bank hereunder in respect of the Advances and
(iii) both the amount of any sum received by the Agent hereunder from
Company in respect of the Advances and each Bank’s share thereof. The
entries made in the Register maintained pursuant this Section 2.2 shall,
absent manifest error, will be conclusive evidence of the existence and
amounts of the obligations of Company therein recorded; provided, however,
that the failure of any Bank or the Agent to maintain the Register or any
account, as applicable, or any error therein, shall not in any manner affect
the obligation of Company to repay the Advances (and all other amounts owing
with respect thereto) made to Company by the Banks in accordance with the
terms of this Agreement.”

          3. Section 3 of the Credit Agreement is hereby amended as follows:

(a) Section 3.2 is amended by amending and restating the introductory sentence of
such section in its entirety as follows:

“No Letter of Credit shall be issued (including the renewal or extension of
any Letter of Credit previously issued) or increased at the request and for
the account of any Account Party unless, as of the date of issuance (or
renewal or extension) of such Letter of Credit:”

(b) Section 3.2 is hereby amended by deleting the “and” appearing at the end of
clause (h) thereof, inserting the following new clause (i) and renumbering the
existing clause (i) as clause (j):

“(i) if any Revolving Credit Bank is an Impaired Bank, the Issuing Bank has
entered into arrangements satisfactory to it to eliminate the Issuing Bank’s
risk with respect to the participation in Letters of Credit by all such
Impaired Banks, including, without limitation, the creation of a cash
collateral account or delivery of other security by the Company to assure
payment of such Impaired Bank’s Percentage of all outstanding Letter of
Credit Obligations; and”

10

 

(c) Section 3.6 is hereby amended by inserting the following new clause (d) and
renumbering the existing clause (d) as clause (e):

“(d) In the event that any Revolving Credit Bank becomes an Impaired Bank,
the Issuing Bank may, at its option, require that the Company enter into
arrangements satisfactory to Issuing Bank to eliminate the Issuing Bank’s
risk with respect to the participation in Letters of Credit by such Impaired
Bank, including creation of a cash collateral account or delivery of other
security to assure payment of such Impaired Bank’s Percentage of all
outstanding Letter of Credit Obligations.”

          4. Section 7 of the Credit Agreement is hereby amended as follows:

(a) Section 7.3(g) is hereby amended and restated in its entirety as follows:

“(g) promptly as issued (and with copies for each of the Banks), all press
releases, notices to shareholders and all other material communications
transmitted by the Company or any of its Subsidiaries to its shareholders,
the Lenders or the public generally; and, concurrently with each incurrence
thereof, written notice that new Future Debt has been incurred, accompanied
by copies of the material documents governing such Debt and a certification
that, both before and after giving effect thereto, no Default or Event of
Default shall have occurred and be continuing and the Company is otherwise
in compliance with this Agreement and, thereafter (with respect to such
Debt), promptly following the receipt thereof (but in any event within three
(3) Business Days of receipt) copies of all notices of default or
reservations of rights (or similar notices) received from any holder of
Future Debt, or any trustee or other representative acting for such holder
(which notices, together with copies of any such notices received directly
by Agent from such holders or trustees, shall be promptly delivered to each
of the Banks);”

(b) The reference in Section 7.17(a)(i) to “Lenders” appearing therein and replacing
it with “Collateral Agent.”

(c) Section 7.18 is hereby amended and restated in its entirety as follows:

“7.18 Financial Covenant Amendments. In the event that, at any time
while this Agreement is in effect, the Company shall issue or shall amend
any documents with respect to any indebtedness for borrowed money which is
not by its terms subordinate and junior to the Indebtedness hereunder and
such indebtedness shall include, or be issued pursuant to a trust indenture
(other than the Senior Note Documents as in effect on the Ninth Amendment
Effective Date) or other agreement which includes, financial covenants which
are not substantially identical to the financial covenants set forth in this
Agreement, the Company shall so advise the Agent in writing. Such notice
shall be accompanied by a copy of the

11

 

applicable agreement containing such financial covenants. The Agent shall
promptly furnish a copy of such notice and the applicable agreement to each
of the Banks. If the Majority Banks determine in their sole discretion that
some or all of the financial covenants set forth in such agreement are more
favorable to the lender thereunder than the financial covenants set forth in
this Agreement (“More Favorable Terms”) and that the Majority Banks desire
that this Agreement be amended to incorporate the More Favorable Terms, then
the Agent shall give written notice of such determination to the Company.
Thereupon, and in any event within thirty (30) days following the date of
notice by Agent to the Company, Company and the Banks shall enter into an
amendment to this Agreement incorporating, on terms and conditions
acceptable to the Majority Banks, the More Favorable Terms.”

          5. Section 8 of the Credit Agreement is hereby amended as follows:

(a) Section 8.5(g) is hereby amended and restated in its entirety as follows:

“(g) (i) Intercompany Loans by the Company to any Domestic Subsidiary or by
any Domestic Subsidiary to the Company or another Domestic Subsidiary
(excluding any Special Purpose Subsidiary (other than Intercompany Loans
made by Company to the applicable Special Purpose Subsidiary, using the net
proceeds of the Senior Notes (or a portion thereof), to prepay the Debt of
such Special Purpose Subsidiary (including interest, fees and other amounts
owed thereunder to the extent of any cash investments in Special Purpose
Subsidiaries permitted under Section 8.8(j) hereof) outstanding in respect
of the Wells Fargo Warehouse Securitization and excluding any other
Subsidiary excluded from the definition of Significant Subsidiary by the
proviso at the end of such definition) made while no Default or Event of
Default has occurred and is continuing (both before and after giving effect
thereto), provided, however, that any such Intercompany Loan shall be
evidenced by and funded under an Intercompany Note, (ii) Intercompany Loans
by the Company or any Domestic Subsidiary to a Foreign Subsidiary existing
immediately prior to the Ninth Amendment Effective Date and disclosed on
Schedule 8.8 hereto and evidenced by an Intercompany Note, and (iii)
Intercompany Loans (on a subordinated basis in relation to the Indebtedness
on substantially the basis set forth in the form of Intercompany Note,
attached hereto) by any Foreign Subsidiary to the Company, another Foreign
Subsidiary or a Domestic Subsidiary excluding any Special Purpose Subsidiary
and any other Subsidiary excluded from the definition of Significant
Subsidiary by the proviso at the end of such definition;”

(b) Section 8.6(a) is hereby amended and restated in its entirety as follows:

12

 

“(a) in favor of Collateral Agent (as defined in the Intercreditor
Agreement), as security for the Indebtedness and for any Future Debt
pursuant to Collateral Documents;”

(c) Section 8.8 is hereby amended by deleting the “and” appearing at the end of
clause (k) thereof, deleting the period appearing at the end of clause (l) thereof,
replacing it with a semicolon and inserting the following new clauses (m), (n), and
(o) thereafter:

“(m) Guarantee Obligations permitted under Section 8.4;

(n) Investments in the Company made by any Subsidiary; and

(o) Investments made by the Company in the applicable Special Purpose
Subsidiary, using the net proceeds of the Senior Notes (or a portion
thereof) to prepay Debt of such Special Purpose Subsidiary (including
interest, fees and other amounts owed thereunder) outstanding in respect of
the Wells Fargo Warehouse Securitization provided that at the time of each
such Investment no Default or Event of Default has occurred and is
continuing.”

(d) Section 8.10 is amended and restated as follows:

“8.10 Transactions with Affiliates. Enter into any transaction with
any of its stockholders or officers or its Affiliates (including, without
limitation, affiliated Dealers but excluding the Company or any of its
Subsidiaries), except in the ordinary course of business and on terms not
materially less favorable than would be usual and customary in similar
transactions between Persons dealing at arm’s length.

(e) Section 8.11 is hereby amended by inserting the words “the Future Debt Documents
and” at the beginning of clause (iii)(A) thereof.

(f) Section 8.12 is hereby amended and restated in its entirety as follows:

“8.12 Prepayment of Debts. Except for Permitted Prepayments and for
prepayments of Intercompany Loans made pursuant to the New Restructuring or
in accordance with the form of Intercompany Note, attached hereto, prepay,
purchase, redeem or defease any Debt for money borrowed, excluding, subject
to the terms hereof, the Indebtedness, and excluding (i) paydowns from time
to time of permitted working capital facilities or other revolving debt
maintained by the Company or any of its Domestic Subsidiaries (other than
any Special Purpose Subsidiary), (ii) paydowns of debt of any Special
Purpose Subsidiary made from the cash flows of the assets owned by such
Special Purpose Subsidiary and paydowns of warehouse facilities maintained
at a Special Purpose Facility from proceeds of assets sold by such Special
Purpose Subsidiary in connection with the ultimate transfer of such assets
to another Special

13

 

Purpose Subsidiary, (iii) provided no Default or Event of Default has
occurred and is continuing at the time of such prepayment both before and
after giving effect to such prepayment, the paydown, using net proceeds of
the Senior Notes, of the Wells Fargo Warehouse Securitization, (iv)
mandatory payments, prepayments or redemptions of Future Debt, and (v) with
respect only to Permitted Securitizations, any payment pursuant to a Cleanup
Call.”

(g) Section 8.13 is hereby amended and restated in its entirety as follows:

“8.13 Amendment of Future Debt Documents. Except with the prior
written approval of Agent and the Majority Banks, amend, modify or otherwise
alter (or suffer to be amended, modified or altered) or waive (or permit to
be waived) in any material respect, any documents or instruments evidencing
or otherwise related to Future Debt so as to shorten the original maturity
date or amortization schedule thereof (including amending any of the
provisions requiring mandatory prepayment, redemptions or repurchases to
provide for additional prepayments, redemptions or repurchase), or amend,
modify or otherwise alter (or suffer to be amended, modified or altered) any
documents or instruments evidencing or otherwise related to Future Debt to
include (or enter into any Future Debt Documents which include) any
covenants or other provisions that require, for the amendment of any term or
provision of this Agreement, or the waiver of any term or provision hereof,
the approval or consent of any other creditor of the Company; provided,
however, that, solely for purposes of this Section 8.13, any Bank which
fails, within fifteen (15) Business Days of receipt of a written notice from
Company of its intent to make such amendment, modification or alteration (or
waiver) in respect of the Future Debt, (accompanied by a summary, in
reasonable detail, of the proposed terms and conditions thereof, captioned
“notice of intent to amend Future Debt” and stating that approval is deemed
to be given if an objection is not made within fifteen (15) Business Days of
receipt of such notice), to object in writing to such action shall be deemed
to have given its approval of such amendment, modification, alteration or
waiver.

          6. Section 9.1(i) is amended by deleting the words “Change in Control” appearing in the second
to last line thereof and inserting “‘Change in Control’ or ‘Change of Control’” in their place.

          7. The following new Section 10.5 is hereby inserted after the existing Section 10.4:

“10.5 Treatment of a Defaulting Bank. (a) The obligation of any
Bank to make any Advance hereunder shall not be affected by the failure of
any other Bank to make any Advance under this Agreement, and no Bank shall
have any liability to Company or any of its Subsidiaries, the Agent, any

14

 

other Bank, or any other Person for another Bank’s failure to make any loan
or Advance hereunder.

(b) If any Bank shall become a Defaulting Bank, then such Defaulting Bank’s
right to participate in the administration of the loans, this Agreement and
the other Loan Documents, including without limitation any right to vote in
respect of any amendment, consent or waiver of the terms of this Agreement
or such other Loan Documents, or to direct or approve any action or inaction
by the Agent shall be suspended for the entire period that such Bank remains
a Defaulting Bank and the stated commitment amounts and outstanding Advances
of such Defaulting Bank shall not be included in determining whether all
Banks or the Majority Bank (or any class thereof), as the case may be, have
taken or may take any action hereunder (including, without limitation, any
action to approve any consent, waiver or amendment to this Agreement or the
other Loan Documents); provided, however, that the foregoing shall not
permit (i) an increase in such Defaulting Bank’s stated commitment amounts,
(ii) the waiver, forgiveness or reduction of the principal amount of any
Indebtedness outstanding to such Defaulting Bank, (iii) the extension of the
final maturity date(s) of such Defaulting Banks’ portion of any of the loans
or other extensions of credit or other obligations of Company owing to such
Defaulting Bank, and in the case of the foregoing clauses (i), (ii) and
(iii) without such Defaulting Bank’s consent, and (iv) any other
modification which under Section 13.11 requires the consent of all Banks or
the Bank(s) affected thereby which affects the Defaulting Bank differently
than the Non-Defaulting Banks affected by such modification, other than a
change to or waiver of the requirements of Section 10.3 which results in a
reduction of the Defaulting Bank’s commitment or its share of the
Indebtedness on a non pro-rata basis.

(c) To the extent and for so long as a Bank remains a Defaulting Bank and
notwithstanding the provisions of Section 10.3 hereof, the Agent shall be
entitled, without limitation, (i) to withhold or setoff and to apply in
satisfaction of those obligations for payment (and any related interest) in
respect of which the Defaulting Bank shall be delinquent or otherwise in
default to Agent or any Bank (or to hold as cash collateral for such
delinquent obligations or any future defaults) the amounts otherwise payable
to such Defaulting Bank under this Agreement or any other Loan Document,
(ii) if the amount of Advances made by such Defaulting Bank is less than its
Percentage requires, apply payments of principal made by the Company amongst
the Non-Defaulting Banks on a pro rata basis until all outstanding Advances
are held by all Banks according to their respective Percentages and (iii) to
bring an action or other proceeding, in law or equity, against such
Defaulting Bank in a court of competent jurisdiction to recover the
delinquent amounts, and any related interest. Performance by Company of
their respective obligations under this Agreement and the other Loan
Documents shall not be excused or otherwise modified as a

15

 

result of the operation of this Section, except to the extent expressly set
forth herein and in any event the Company shall not be required to pay any
Revolving Credit Facility Fee under Section 13 of this Agreement in respect
of such Defaulting Bank’s Unfunded Portion of the Revolving Credit for the
period during which such Bank is a Defaulting Bank. Furthermore, the rights
and remedies of Company, the Agent, the Issuing Bank, the Swing Line Bank
and the other Banks against a Defaulting Bank under this section shall be in
addition to any other rights and remedies such parties may have against the
Defaulting Bank under this Agreement or any of the other Loan Documents,
applicable law or otherwise, and the Company waive no rights or remedies
against any Defaulting Bank.”

          8. Article 12 is hereby amended by amending and restating Section 12.16 in its entirety as
follows:

“12.16 Collateral Matters. (a) The Agent is authorized on behalf of
all the Banks, without the necessity of any notice to or further consent
from the Banks (but subject to the Intercreditor Agreement), from time to
time to take any action with respect to any Collateral or the Collateral
Documents which may be necessary to perfect and maintain a perfected
security interest in and Liens upon the Collateral granted pursuant to the
Loan Documents; and (b) the Banks irrevocably authorize the Agent, at its
option and in its discretion (but subject to the Intercreditor Agreement),
(1) to release any Lien granted to or held by the Agent upon any Collateral
(i) upon termination of the Revolving Credit Maximum Amount and payment in
full of all Indebtedness payable under this Agreement and under any other
Loan Document; (ii) constituting property sold or to be sold or disposed of
as part of or in connection with any disposition not otherwise prohibited
hereunder; (iii) constituting property in which Company or any Subsidiary
owned no interest at the time the Lien was granted or at any time
thereafter; or (iv) if approved, authorized or ratified in writing by the
Majority Banks or all the Banks, as the case may be, as provided in Section
13.11, (2) to subordinate the Lien granted to or held by Agent on any
Collateral to any other holder of a Lien on such Collateral which is
permitted by Section 8.6(b) hereof, and (3) if all of the Equity Interests
held by the Credit Parties in any Person are sold or transferred to any
transferor other than Company or a subsidiary of Company as part of or in
connection with any disposition (whether by sale, by merger or by any other
form of transaction) permitted in accordance with the terms of this
Agreement, to release such Person from all of its obligations under the Loan
Documents (including without limitation under any Guaranty). Upon request
by the Agent at any time, the Banks will confirm in writing the Agent’s
authority to release particular types or items of Collateral pursuant to
this Section 12.16(b).”

          9. Article 13 is hereby amended as follows:

16

 

(a) Clause (c) of Section 13.8 is hereby amended and restated in its entirety as
follows:

“(c) The Company and Agent acknowledge that each of the Banks may at any
time and from time to time, subject to the terms and conditions hereof,
assign or grant participations in such Bank’s rights and obligations
hereunder and under the other Loan Documents to any Eligible Assignee. The
Company authorizes each Bank to disclose to any prospective assignee or
participant, once approved by Company and Agent, any and all financial
information in such Bank’s possession concerning the Company which has been
delivered to such Bank pursuant to this Agreement; provided that each such
prospective participant shall have executed a confidentiality agreement
consistent with the terms of Section 13.13 hereof.”

(b) Clause (d)(v) of Section 13.8 is hereby modified by deleting the period at the
end of the clause and replacing it with “;and”

(c) New Clause (d)(vi) is hereby inserted as follows:

“(vi) the assignment shall have been entered in the Register in accordance
with Clause (h) of this Section 13.8.”

(d) New Clause (h) of Section 13.8 is hereby inserted:

“(h) The Agent shall (acting, as agent for the Company, solely for purposes
of this Section 13.8) maintain at its principal office a copy of each
Assignment Agreement delivered to it and a register (the “Register”) for the
recordation of the names and addresses of the Banks, the Percentages of such
Banks and the principal amount of each type of Advance owing to each such
Bank from time to time. The entries in the Register shall be conclusive
evidence, absent manifest error, and the Company, the Agent, and the Banks
may treat each Person whose name is recorded in the Register as the owner of
the Advances recorded therein for all purposes of this Agreement. The
Register shall be available for inspection by the Company or any Bank (but
only with respect to any entry relating to such Bank’s Percentages and the
principal amounts owing to such Bank) upon reasonable notice to the Agent
and a copy of such information shall be provided to any such party on their
prior written request. The Agent shall give prompt written notice to the
Company of the making of any entry in the Register or any change in such
entry.”

(e) Clause (e) of Section 13.11 is hereby amended and restated in its entirety as
follows:

"(e) except as expressly permitted hereunder, under the Collateral Documents
or the Intercreditor Agreement, release all or substantially all of the
Collateral (provided that neither Agent nor any Bank shall be

17

 

prohibited thereby from proposing or participation in a consensual or
non-consensual debtor-in-possession or similar financing), or release any
material guaranty provided by any Person in favor of Agent and Banks;
provided, however, Agent shall be entitled, without notice to or any further
action or consent of the Banks, to release any collateral which any Credit
Party is permitted to sell, assign or otherwise transfer in compliance with
this Agreement or any of the other Loan Documents or release any guaranty
expressly permitted in this Agreement or any of the other Loan Documents
(whether in connection with the sale, transfer or other disposition of the
applicable Guarantor or otherwise)”

(f) The following new section 13.14 is hereby inserted after existing section 13.13
and existing Section 13.14 through 13.21 are renumbered accordingly:

“13.14 Substitution or Removal of Banks. If (a) the obligation of
any Bank to make Eurocurrency-based Advances has been suspended pursuant to
Section 11.3 or 11.4, (b) any Bank has demanded compensation under Sections
3.4(b), 11.5 or 11.6 or (c) any Bank has become an Impaired Bank or has not
approved an amendment, waiver or other modification of this Agreement, if
such amendment, waiver or modification has been approved by the Majority
Banks and the consent of such Bank is required (in each case, an “Affected
Bank”), then the Company shall have the following rights in addition to any
other rights or remedies it may have hereunder:

(b) Subject to Section 13.8 hereof, the Company may, with the assistance of
the Agent, seek a substitute Bank or Banks (which may be one or more of the
Banks (the “Purchasing Bank” or “Purchasing Banks”) to purchase the Advances
of the Revolving Credit and Swing Line and assume the Revolving Credit
Aggregate Commitment (including without limitation the participations in
Swing Line Advances and Letters of Credit) under this Agreement of such
Affected Bank, and require the Affected Bank to sell its Advances of the
Revolving Credit and Swing Line, and assign its Revolving Credit Aggregate
Commitment to such Purchasing Bank or Purchasing Banks within two (2)
Business Days after receiving notice from the Company requiring it to do so,
at an aggregate price equal to the outstanding principal amount thereof,
plus unpaid interest accrued thereon up to but excluding the date of the
sale, payable (in immediately available funds) in cash. In connection with
any such sale, and as a condition thereof, the Company shall pay to the
Affected Bank all fees accrued for its account hereunder to but excluding
the date of such sale, plus, if demanded by the Affected Bank within ten
(10) Business Days after such sale, (x) the amount of any compensation which
would be due to the Affected Bank under Section 11.1 if the Company had
prepaid the outstanding Eurocurrency-based Advances of the Affected Bank on
the date of such sale (unless such Affected Bank is an Impaired Bank, in
which case no such compensation shall be due) and (y) any additional

18

 

compensation accrued for its account under Sections 3.4(b), 11.5 and 11.6 to
but excluding said date. Upon such sale, the Purchasing Bank or Purchasing
Banks shall assume the Affected Bank’s commitment, and the Affected Bank
shall be released from its obligations hereunder to a corresponding extent.
The Affected Bank, as assignor, such Purchasing Bank, as assignee, the
Company and the Agent, shall enter into an Assignment Agreement pursuant to
Section 13.8 hereof, whereupon such Purchasing Bank shall be a Bank party to
this Agreement, shall be deemed to be an assignee hereunder and shall have
all the rights and obligations of a Bank with a Revolving Credit Percentage
equal to its ratable share of the then applicable Revolving Credit Aggregate
Commitment of the Affected Bank, provided, however, that if the Affected
Bank does not execute such Assignment Agreement within (2) Business Days of
receipt thereof, the Agent may execute the Assignment Agreement as the
Affected Bank’s attorney-in-fact. Each of the Banks hereby irrevocably
constitutes and appoints the Agent and any officer or agent thereof, with
full power of substitution, as its true and lawful attorney-in-fact with
full power and authority in the name of such Bank or in its own name to
execute and deliver an Assignment Agreement while such Bank is an Affected
Bank hereunder (such power of attorney to be deemed coupled with an interest
and irrevocable). In connection with any assignment pursuant to this Section
13.14, the Company or the Purchasing Bank shall pay to the Agent the
administrative fee for processing such assignment referred to in Section
13.8; and

(c) With respect to any Affected Bank that is an Impaired Bank, the Company
may, with the prior written consent of the Agent and notwithstanding Section
10.3 of this Agreement or any other provisions requiring pro rata payments
to the Banks, elect to reduce the Revolving Credit Aggregate Commitment by
the amount of the Revolving Credit Aggregate Commitment of such Affected
Bank and repay all amounts owing to such Affected Bank, subject to the
following:

(i) such Affected Bank shall receive an amount in cash equal to the
outstanding principal amount owing to such Affected Bank under this
Agreement, plus unpaid interest accrued thereon up to but excluding the date
of the repayment. In addition, and as a condition thereof, the Company shall
pay to the Affected Bank all fees accrued for its account hereunder to but
excluding the date of such repayment, plus, if demanded by the Affected Bank
within ten (10) Business Days after such repayment, (x) the amount of any
compensation which would be due to the Affected Bank under Section 11.1 if
the Company had prepaid the outstanding Eurocurrency-based Advances of the
Affected Bank on the date of such repayment and (y) any additional
compensation accrued for its account under Sections 3.4(b), 11.5 and 11.6 to
but excluding said date;

19

 

(ii) (x) after giving effect to the reduction in the Revolving Credit
Aggregate Commitment and the payments required under subclause (A) above,
the Company shall have availability, on the date of the repayment, to borrow
additional Revolving Credit Advances under the Revolving Credit Aggregate
Commitment of at least $20,000,000 (after taking into account the sum on
such date of the outstanding principal amount of all Revolving Credit
Advances, Swing Line Advances and Letter of Credit Obligations) and (y) no
Default or Event of Default has occurred and is continuing, both before and
after giving effect to such reduction (provided that compliance with the
conditions in this clause (ii) may be waived by the Majority Banks); and

(iii) the stated dollar commitment of any other Bank is not
increased thereby.”

          10. Replacement Schedule 8.8. Schedule 8.8 to the Credit Agreement is hereby amended
and restated in its entirety in the form of replacement Schedule 8.8 attached hereto.

          11. Replacement Exhibit N. Existing Exhibit N to the Credit Agreement is hereby
amended and restated in its entirety in the form of replacement Exhibit N attached hereto.

          12. Authorization to Amend and Restate the Intercreditor Agreement. The Company has
requested that the Intercreditor Agreement be amended and restated in the form attached hereto as
Exhibit A (“Amended and Restated Intercreditor Agreement”) and the Agents and the Banks have agreed
to do so. Agent is authorized to execute the Amended and Restated Intercreditor Agreement on
behalf of the Banks.

          13. Authorization to Amend and Restate the Security Agreement. The Company has
requested that the Security Agreement be amended and restated in the form attached hereto as
Exhibit B (“Amended and Restated Security Agreement”) and the Agents and the Banks have agreed to
do so. Agent is authorized to execute the Amended and Restated Security Agreement on behalf of the
Banks.

          14. Release of Guarantors; Release of Security Interest. Company has informed Agent
and the Banks that certain of its Domestic Subsidiaries no longer meet the definition of
Significant Domestic Subsidiary and has requested and the Agent and Banks have agreed to release
such Domestic Subsidiaries. The following Guarantors are here by released from their obligations
under the Guaranty and Security Agreement: CAC South Dakota, Credit Acceptance Corporation of
Nevada, Inc., Auto Funding of America of Nevada, Inc., CAC Leasing, Inc., CAC (TCI), Ltd., and CAC
Reinsurance Ltd. and all liens on the assets of each such Subsidiary created under the Collateral
Documents are hereby released. Agent is authorized to execute and deliver all such releases and
lien terminations and to make all such filings as necessary to effectuate this release.

          15. Confirmation. Each of the Banks, by signing below, confirms that the Indenture and
the form of Senior Note attached thereto are satisfactory to such Bank and will not require any
amendments pursuant to clause (c) of the definition of Funding Conditions or Section 7.18.

20

 

          16. This Ninth Amendment shall become effective according to the terms and as of the date
hereof, upon satisfaction by the Company of the following conditions:

(1) Agent shall have received counterpart originals of (i) this Ninth Amendment,
duly executed and delivered by the Company and the requisite Banks (ii) the Amended
and Restated Security Agreement, (iii) the amended and restated Intercreditor
Agreement and (iv) a Reaffirmation of Loan Documents duly executed and delivered by
the Guarantors.

(2) Company shall have paid to Agent for distribution to each of the Banks that have
executed this Amendment a fee equal to five basis points on their respective
commitments.

(3) Company shall have delivered executed and delivered to Agent the original
Intercompany Notes evidencing all Intercompany Loans made by the Company and its
Significant Domestic Subsidiaries existing as of the Ninth Amendment Effective Date.

(4) The Agent shall have received (i) executed copies of each of the Senior Note
Documents; each in effect on the Ninth Amendment Effective Date in form and
substance satisfactory to Agent and the requisite Banks and (ii) legal opinions of
external counsel for the Company covering this Ninth Amendment, the Security
Agreement and the Intercreditor Agreement and such other Loan Documents as
referenced by Agent, duly addressed to Agent and the Banks (and in form reasonably
satisfactory to Agent).

(5) Agent shall have received from a responsible senior officer of the Company and
each of the Guarantors a certification (supported by appropriate authorizing
resolutions) (i) that this Ninth Amendment and each of the other Loan Documents
being executed concurrently therewith has been duly authorized, executed and
delivered on behalf of the Company, and that no consents or other authorizations of
any third parties are required in connection therewith; and (ii) that, after giving
effect to this Ninth Amendment, no Default or Event of Default has occurred and is
continuing on the proposed effective date of the Ninth Amendment.

(6) Company shall have paid to the Agent and the Banks all fees and expenses, if
any, owed to the Agent and the Banks and accrued to the Ninth Amendment Effective
Date.

          Agent shall give notice to Company and the Banks of the occurrence of the Ninth Amendment
Effective Date.

          17. The Company ratifies and confirms, as of the date hereof and after giving effect to the
amendments contained herein, each of the representations and warranties set forth in Sections 6.1
through 6.18, inclusive, of the Credit Agreement and acknowledges that such representations and
warranties are and shall remain continuing representations and warranties during the entire life of
the Credit Agreement.

21

 

          18. Except as specifically set forth above, this Ninth Amendment shall not be deemed to amend
or alter in any respect the terms and conditions of the Credit Agreement, any of the Notes issued
thereunder or any of the other Loan Documents, or to constitute a waiver by the Banks or Agent of
any right or remedy under or a consent to any transaction not meeting the terms and conditions of
the Credit Agreement, any of the Notes issued thereunder or any of the other Loan Documents.

          19. Unless otherwise defined to the contrary herein, all capitalized terms used in this Ninth
Amendment shall have the meaning set forth in the Credit Agreement.

          20. This Ninth Amendment may be executed in counterpart in accordance with Section 13.10 of
the Credit Agreement.

          21. This Ninth Amendment shall be construed in accordance with and governed by the laws of the
State of Michigan.

[Signatures Follow on Succeeding Pages]

22

 

          WITNESS the due execution hereof as of the day and year first above written.

	 	 	 	 	 
	 	COMERICA BANK,

as Agent

 	 
	 	By:  	/s/ Michael P. Stapleton
 	 
	 	 	Name:  	Michael P. Stapleton 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page For

CAC Ninth Amendment

(978821)

 

 

	 	 	 	 	 
	 	CREDIT ACCEPTANCE

CORPORATION

 	 
	 	By:  	/s/ Douglas W. Busk
 	 
	 	 	Name:  	Douglas W. Busk 	 
	 	 	Its: Treasurer 	 
	 

Signature Page For

CAC Ninth Amendment

(978821)

 

 

	 	 	 	 	 
	 	BANKS:

COMERICA BANK

 	 
	 	By:  	/s/ Michael P. Stapleton
 	 
	 	 	Name:  	Michael P. Stapleton 	 
	 	 	Its: Vice President 	 
	 

Signature Page For

CAC Ninth Amendment

(978821)

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Neil Hilton
 	 
	 	 	Name:  	Neil Hilton 	 
	 	 	Its: Senior Vice President 	 
	 

Signature Page For

CAC Ninth Amendment

(978821)

 

 

	 	 	 	 	 
	 	BANK OF MONTREAL

 	 
	 	By:  	/s/ Catherine Grycz
 	 
	 	 	Name:  	Catherine Grycz 	 
	 	 	Its: Vice President 	 
	 

Signature Page For

CAC Ninth Amendment

(978821)

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK, an Ohio banking corporation,

successor by merger with FIFTH THIRD BANK, a Michigan
banking corporation

 	 
	 	By:  	/s/ John Antonczak
 	 
	 	 	Name:  	John Antonczak 	 
	 	 	Its: Vice President 	 
	 

Signature Page For

CAC Ninth Amendment

(978821)

 

 

	 	 	 	 	 
	 	RBS CITIZENS, N.A.

 	 
	 	By:  	/s/ Michael Dolson
 	 
	 	 	Name:  	Michael Dolson 	 
	 	 	Its: Senior Vice President 	 
	 

 

 

SCHEDULE 8.8

Intercompany Loans to Foreign Subsidiaries by US Companies

	 	 	 	 	 
	Lender	 	Borrower	 	Amount
	Credit Acceptance
Corporation of South Dakota,
Inc
	 	Credit Acceptance
Corporation UK Limited
	 	822,866.40

Equity Investments in Foreign Subsidiaries by US Companies

	 	 	 	 	 
	Issuer	 	Owner of Equity	 	Ownership Percentage
	CAC Reinsurance
Ltd. (Turks and Caicos)
	 	Credit Acceptance Corporation
	 	100%
	 	 	 	 	 
	CAC Scotland (Scotland)
	 	Credit Acceptance Corporation
of South Dakota, Inc.
	 	90%
	 	 	 	 	 
	 
	 	CAC International Holdings, LLC
	 	10%

1

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