Document:

Exhibit

EXECUTION COPY

AMENDED AND RESTATED INTERCREDITOR AGREEMENT
This Amended and Restated Intercreditor Agreement (this “Agreement”), dated February 22, 2018, is among Credit Acceptance Corporation (“CAC”), CAC Warehouse Funding Corporation II (“Warehouse Funding II”), CAC Warehouse Funding LLC IV (“Warehouse Funding IV”), CAC Warehouse Funding LLC V (“Warehouse Funding V”), CAC Warehouse Funding LLC VI (“Warehouse Funding VI”), CAC Warehouse Funding LLC VII (“Warehouse Funding VII”), Credit Acceptance Funding LLC 2018-1 (“Funding 2018-1”), Credit Acceptance Funding LLC 2017-3 (“Funding 2017-3”), Credit Acceptance Funding LLC 2017-2 (“Funding 2017-2”), Credit Acceptance Funding LLC 2017-1 (“Funding 2017-1”), Credit Acceptance Funding LLC 2016-3 (“Funding 2016-3”), Credit Acceptance Funding LLC 2016-2 (“Funding 2016-2”), Credit Acceptance Funding LLC 2016-1 (“Funding 2016-1”), Credit Acceptance Funding LLC 2015-2 (“Funding 2015-2”), Credit Acceptance Funding LLC 2015-1 (“Funding 2015-1”), Credit Acceptance Auto Loan Trust 2018-1 (“2018-1 Trust”), Credit Acceptance Auto Loan Trust 2017-3 (the “2017-3 Trust”), Credit Acceptance Auto Loan Trust 2017-2 (the “2017-2 Trust”), Credit Acceptance Auto Loan Trust 2017-1 (the “2017-1 Trust”), Credit Acceptance Auto Loan Trust 2016-3 (the “2016-3 Trust”), Credit Acceptance Auto Loan Trust 2016-2 (the “2016-2 Trust”), Credit Acceptance Auto Loan Trust 2015-2 (the “2015-2 Trust”), Credit Acceptance Auto Loan Trust 2015-1 (the “2015-1 Trust”), Wells Fargo Bank, National Association, as collateral agent under the Wells Fargo Warehouse Documents (“Wells Fargo”), Fifth Third Bank, as agent under the Fifth Third Warehouse Documents (“Fifth Third”), Wells Fargo Bank, National Association, as indenture trustee and trust collateral agent under the 2018-1 Securitization Documents (in either such capacity, the “2018-1 Trustee”, as the context requires), Wells Fargo Bank, National Association, as indenture trustee and trust collateral agent under the 2017-3 Securitization Documents (in either such capacity, the “2017-3 Trustee”, as the context requires), Wells Fargo Bank, National Association, as indenture trustee and trust collateral agent under the 2017-2 Securitization Documents (in either such capacity, the “2017-2 Trustee”, as the context requires), Wells Fargo Bank, National Association, as indenture trustee and trust collateral agent under the 2017-1 Securitization Documents (in either such capacity, the “2017-1 Trustee”, as the context requires), Wells Fargo Bank, National Association, as indenture trustee and trust collateral agent under the 2016-3 Securitization Documents (in either such capacity, the “2016-3 Trustee”, as the context requires), Wells Fargo Bank, National Association, as indenture trustee and trust collateral agent under the 2016-2 Securitization Documents (in either such capacity, the “2016-2 Trustee”, as the context requires), Wells Fargo Bank, National Association, as collateral agent under the 2016-1 Securitization Documents (in such capacity, the “2016-1 Collateral Agent”), Wells Fargo Bank, National Association, as indenture trustee and trust collateral agent under the 2015-2 Securitization Documents (in either such capacity, the “2015-2 Trustee”, as the context requires), Wells Fargo Bank, National Association, as indenture trustee and trust collateral agent under the 2015-1 Securitization Documents (in either such capacity, the “2015-1 Trustee”, as the context requires), Bank of Montreal, as collateral agent under the BMO Warehouse Documents (“BMO”), Flagstar Bank, FSB, as collateral agent under the Flagstar Warehouse Documents (“Flagstar”), Wells Fargo Bank, National Association, as collateral agent under the Credit Suisse Warehouse Documents (in such capacity, the “Credit Suisse Warehouse Collateral Agent”), Comerica Bank, as agent under the CAC Credit Facility Documents (“Comerica”), and each other creditor who becomes a party hereto after the date hereof.

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Capitalized terms used but not otherwise defined herein shall have the meaning set forth in Appendix A attached hereto and made part of this Agreement.
BACKGROUND
A.  Pursuant to the terms of the various Dealer Agreements between CAC and the Dealers, Collections from a particular Pool are first used to pay certain collection costs, CAC’s servicing fee and to pay back the Pool’s Advance balance.  After the Advance balance under such Pool has been reduced to zero, the Dealer to whom the Pool relates has a contractual right under the related Dealer Agreement to receive a portion of any further Collections with respect to the Pool (such portion of further Collections otherwise payable to the Dealer is referred to herein as “Back-end Dealer Payments”), subject to CAC’s right of offset as described in paragraph R below.
B.  CAC has granted a security interest in CAC’s rights with respect to its Pools (to the extent not released) and related assets generally under the CAC Credit Facility Documents to Comerica, as collateral agent for the banks which are parties thereto.
C.  CAC, Wells Fargo and certain other parties entered into a transaction as set forth in the Wells Fargo Warehouse Documents (the “Wells Fargo Warehouse”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the Wells Fargo Warehouse Documents will be) released by Comerica, CAC contributed (and will contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Warehouse Funding II, and Warehouse Funding II granted Wells Fargo, in its capacity as collateral agent, a security interest in Warehouse Funding II’s rights to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “Wells Fargo Warehouse Loans”).
D.  CAC, Fifth Third and certain other parties entered into a transaction as set forth in the Fifth Third Warehouse Documents (the “Fifth Third Warehouse”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the Fifth Third Warehouse Documents will be) released by Comerica, CAC contributed (and will contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Warehouse Funding V, and Warehouse Funding V granted Fifth Third, in its capacity as collateral agent, a security interest in Warehouse Funding V’s rights to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “Fifth Third Loans”).
E.  CAC, BMO and certain other parties entered into a transaction as set forth in the BMO Warehouse Documents (the “BMO Warehouse”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the BMO Warehouse Documents will be) released by Comerica, CAC transferred (and will transfer) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Warehouse Funding IV, and Warehouse Funding IV granted BMO, in its capacity as collateral agent, a security interest in Warehouse Funding IV’s rights to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “BMO Warehouse Loans”).

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F.  CAC and the 2015-1 Trustee entered into a transaction as set forth in the 2015-1 Securitization Documents (the “2015-1 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the 2015-1 Securitization Documents will be) released by Comerica, CAC sold and contributed (and will sell and contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2015-1, which subsequently sold (and will sell) such Pools, Purchased Loans and related assets to the 2015-1 Trust, a trust the depositor of which is Funding 2015-1, and the 2015-1 Trust granted the 2015-1 Trustee a security interest in its right, title and interest in and to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2015-1 Loans”).
G.  CAC and the 2015-2 Trustee entered into a transaction as set forth in the 2015-2 Securitization Documents (the “2015-2 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the 2015-2 Securitization Documents will be) released by Comerica, CAC sold and contributed (and will sell and contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2015-2, which subsequently sold (and will sell) such Pools, Purchased Loans and related assets to the 2015-2 Trust, a trust the depositor of which is Funding 2015-2, and the 2015-2 Trust granted the 2015-2 Trustee a security interest in its right, title and interest in and to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2015-2 Loans”).
H.  CAC, Flagstar and certain other parties entered into a transaction as set forth in the Flagstar Warehouse Documents (the “Flagstar Warehouse”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the Flagstar Warehouse Documents will be) released by Comerica, CAC transferred (and will transfer) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Warehouse Funding VI, and Warehouse Funding VI granted Flagstar, in its capacity as collateral agent, a security interest in Warehouse Funding VI’s rights to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “Flagstar Warehouse Loans”).
I.  CAC, the 2016-1 Collateral Agent and certain other parties entered into a transaction as set forth in the 2016-1 Securitization Documents (the “2016-1 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the 2016-1 Securitization Documents will be) released by Comerica, CAC is transferring (and will transfer) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2016-1, and Funding 2016-1 granted the 2016-1 Collateral Agent, in its capacity as collateral agent, a security interest in Funding 2016-1’s rights to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2016-1 Loans”).
J.  CAC and the 2016-2 Trustee entered into a transaction as set forth in the 2016-2 Securitization Documents (the “2016-2 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during 

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the revolving period under the 2016-2 Securitization Documents will be) released by Comerica, CAC sold and contributed (and will sell and contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2016-2, which subsequently sold (and will sell) such Pools, Purchased Loans and related assets to the 2016-2 Trust, a trust the depositor of which is Funding 2016-2, and the 2016-2 Trust granted the 2016-2 Trustee a security interest in its right, title and interest in and to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2016-2 Loans”).
K.  CAC and the 2016-3 Trustee entered into a transaction as set forth in the 2016-3 Securitization Documents (the “2016-3 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the 2016-3 Securitization Documents will be) released by Comerica, CAC sold and contributed (and will sell and contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2016-3, which subsequently sold (and will sell) such Pools, Purchased Loans and related assets to the 2016-3 Trust, a trust the depositor of which is Funding 2016-3, and the 2016-3 Trust granted the 2016-3 Trustee a security interest in its right, title and interest in and to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2016-3 Loans”).
L.  CAC and the 2017-1 Trustee entered into a transaction as set forth in the 2017-1 Securitization Documents (the “2017-1 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the 2017-1 Securitization Documents will be) released by Comerica, CAC sold and contributed (and will sell and contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2017-1, which subsequently sold (and will sell) such Pools, Purchased Loans and related assets to the 2017-1 Trust, a trust the depositor of which is Funding 2017-1, and the 2017-1 Trust granted the 2017-1 Trustee a security interest in its right, title and interest in and to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2017-1 Loans”).
M.  CAC and the 2017-2 Trustee entered into a transaction as set forth in the 2017-2 Securitization Documents (the “2017-2 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the 2017-2 Securitization Documents will be) released by Comerica, CAC sold and contributed (and will sell and contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2017-2, which subsequently sold (and will sell) such Pools, Purchased Loans and related assets to the 2017-2 Trust, a trust the depositor of which is Funding 2017-2, and the 2017-2 Trust granted the 2017-2 Trustee a security interest in its right, title and interest in and to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2017-2 Loans”).
N.  CAC and the 2017-3 Trustee entered into a transaction as set forth in the 2017-3 Securitization Documents (the “2017-3 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the 2017-3 Securitization Documents will be) released by Comerica, 

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CAC sold and contributed (and will sell and contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2017-3, which subsequently sold (and will sell) such Pools, Purchased Loans and related assets to the 2017-3 Trust, a trust the depositor of which is Funding 2017-3, and the 2017-3 Trust granted the 2017-3 Trustee a security interest in its right, title and interest in and to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2017-3 Loans”).
O.  CAC and the 2018-1 Trustee are entering into a transaction as set forth in the 2018-1 Securitization Documents (the “2018-1 Securitization”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets is being (and during the revolving period under the 2018-1 Securitization Documents will be) released by Comerica, CAC sold and contributed (and will sell and contribute) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Funding 2018-1, which subsequently sold (and will sell) such Pools, Purchased Loans and related assets to the 2018-1 Trust, a trust the depositor of which is Funding 2018-1, and the 2018-1 Trust is granting the 2018-1 Trustee a security interest in its right, title and interest in and to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “2018-1 Loans”).
P.  CAC, Credit Suisse AG, New York Branch (“Credit Suisse”), the Credit Suisse Warehouse Collateral Agent and certain other parties entered into a transaction as set forth in the Credit Suisse Warehouse Documents (the “Credit Suisse Warehouse”) pursuant to which the security interest with respect to certain specifically identified Pools, Purchased Loans and related assets was (and during the revolving period under the Credit Suisse Warehouse Documents will be) released by Comerica, CAC transferred (and will transfer) such Pools, Purchased Loans and related assets to its wholly-owned subsidiary, Warehouse Funding VII, and Warehouse Funding VII granted the Credit Suisse Warehouse Collateral Agent, in its capacity as collateral agent, a security interest in Warehouse Funding VII’s rights to such Pools, Purchased Loans and related assets (such Pools, Purchased Loans and related assets are referred to herein as the “Credit Suisse Warehouse Loans”).  
Q.  Comerica retains a security interest in Pools, Purchased Loans and related assets which (i) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to Wells Fargo pursuant to the Wells Fargo Warehouse, (ii) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to Fifth Third pursuant to the Fifth Third Warehouse, (iii) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to BMO pursuant to the BMO Warehouse, (iv) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to the 2015-1 Trustee pursuant to the 2015-1 Securitization, (v) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to the 2015-2 Trustee pursuant to the 2015-2 Securitization, (vi) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to Flagstar pursuant to the Flagstar Warehouse, (vii) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been 

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(and will not be) granted to the 2016-1 Collateral Agent pursuant to the 2016-1 Securitization, (viii) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to the 2016-2 Trustee pursuant to the 2016-2 Securitization, (ix) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to the 2016-3 Trustee pursuant to the 2016-3 Securitization, (x) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to the 2017-1 Trustee pursuant to the 2017-1 Securitization, (xi) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to the 2017-2 Trustee pursuant to the 2017-2 Securitization, (xii) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to the 2017-3 Trustee pursuant to the 2017-3 Securitization, (xiii) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets has not been (and will not be) granted to Credit Suisse pursuant to the Credit Suisse Warehouse and (xiv) have not been (and will not be) released, and a security interest encumbering such Pools, Purchased Loans and related assets is not being (and will not be) granted to the 2018-1 Trustee pursuant to the 2018-1 Securitization (such unreleased Pools, Purchased Loans and related assets are referred to herein as the “Comerica Loans”).
R.  The Dealer Agreements permit CAC and its assignees, under certain circumstances, to set off any Collections received with respect to any Pool of a Dealer against Advances under other Pools of that Dealer and such set off rights are authorized and permitted under the CAC Credit Facility Documents, the Wells Fargo Warehouse Documents, the Fifth Third Warehouse Documents, the BMO Warehouse Documents, the Flagstar Warehouse Documents, the Credit Suisse Warehouse Documents, the 2018-1 Securitization Documents, the 2017-3 Securitization Documents, the 2017-2 Securitization Documents, the 2017-1 Securitization Documents, the 2016-3 Securitization Documents, the 2016-2 Securitization Documents, the 2016-1 Securitization Documents, the 2015-2 Securitization Documents and the 2015-1 Securitization Documents.
S.  The parties hereto acknowledge that the rights of CAC or its assigns, pursuant to the Dealer Agreements, to set off Collections received with respect to a Pool against the outstanding balance under any other Pool are not intended, and should not be permitted, to be used to prejudice the collateral position of any of the parties hereto, and therefore the exercise of such rights should be limited to Back-end Dealer Payments.  
T.  Funding 2018-1 directs the Owner Trustee of the 2018-1 Trust to enter into this Agreement, Funding 2017-3 directs the Owner Trustee of the 2017-3 Trust to enter into this Agreement, Funding 2017-2 directs the Owner Trustee of the 2017-2 Trust to enter into this Agreement, Funding 2017-1 directs the Owner Trustee of the 2017-1 Trust to enter into this Agreement, Funding 2016-3 directs the Owner Trustee of the 2016-3 Trust to enter into this Agreement, Funding 2016-2 directs the Owner Trustee of the 2016-2 Trust to enter into this Agreement, Funding 2015-2 directs the Owner Trustee of the 2015-2 Trust to enter into this Agreement and Funding 2015-1 directs the Owner Trustee of the 2015-1 Trust to enter into this Agreement.

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In consideration of the mutual premises and promises set forth herein and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:
AGREEMENTS
1.Confirmation.  Notwithstanding any statement or provision contained in the Financing Documents or otherwise to the contrary, and irrespective of the time, order or method of attachment or perfection of security interests granted pursuant to the Financing Documents, respectively, or the time or order of filing or recording of any financing statements, or other notices of security interests, liens or other interests granted pursuant to the Financing Documents, respectively, or the giving of or failure to give notice of the acquisition or expected acquisition of purchase money or other security interests, and irrespective of anything contained in any filing or agreement to which any Creditor may now or hereafter be a party and irrespective of the ordinary rules for determining priority under the Uniform Commercial Code or under any other law governing the relative priorities of secured creditors, subject, however, to the terms and conditions of this Agreement:
(a)    Release by Wells Fargo.  Wells Fargo, as the collateral agent, (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the Wells Fargo Warehouse Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer or Warehouse Funding II to use Collections on its behalf contrary to clause (a)(i).  Wells Fargo, as collateral agent, agrees that the lien and security interest granted to it pursuant to the Wells Fargo Warehouse Documents does not and shall not attach to the Comerica Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(b)    Release by Fifth Third.  Fifth Third, as the collateral agent, (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the Fifth Third Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer or Warehouse Funding V to use Collections on its behalf contrary to clause (b)

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(i).  Fifth Third, as collateral agent, agrees that the lien and security interest granted to it pursuant to the Fifth Third Warehouse Documents does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(c)    Release by the 2015-1 Trustee.  The 2015-1 Trustee (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2015-1 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer, Funding 2015-1 or the 2015-1 Trust to use Collections on its behalf contrary to clause (c)(i).  The 2015-1 Trust agrees that the lien and security interest granted to the 2015-1 Trustee pursuant to the 2015-1 Securitization Documents to which it is a party does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(d)    Release by the 2015-2 Trustee.  The 2015-2 Trustee (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2015-2 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer, Funding 2015-2 or the 2015-2 Trust to use Collections on its behalf contrary to clause (d)(i).  The 2015-2 Trust agrees that the lien and security interest granted to the 2015-2 Trustee pursuant to the 2015-2 Securitization Documents to which it is a party does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(e)    Release by the 2016-1 Collateral Agent.  The 2016-1 Collateral Agent (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo 

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Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2016-1 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer or Funding 2016-1 to use Collections on its behalf contrary to clause (e)(i). The 2016-1 Collateral Agent agrees that the lien and security interest granted to it pursuant to the 2016-1 Securitization Documents does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(f)    Release by the 2016-2 Trustee.  The 2016-2 Trustee (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2016-2 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer, Funding 2016-2 or the 2016-2 Trust to use Collections on its behalf contrary to clause (f)(i).  The 2016-2 Trust agrees that the lien and security interest granted to the 2016-2 Trustee pursuant to the 2016-2 Securitization Documents to which it is a party does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(g)    Release by the 2016-3 Trustee.  The 2016-3 Trustee (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2016-3 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer, Funding 2016-3 or the 2016-3 Trust to use Collections on its behalf contrary to clause (g)(i).  The 2016-3 Trust agrees that the lien and security interest granted to the 2016-3 Trustee 

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pursuant to the 2016-3 Securitization Documents to which it is a party does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(h)    Release by the 2017-1 Trustee.  The 2017-1 Trustee (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2017-1 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer, Funding 2017-1 or the 2017-1 Trust to use Collections on its behalf contrary to clause (h)(i).  The 2017-1 Trust agrees that the lien and security interest granted to the 2017-1 Trustee pursuant to the 2017-1 Securitization Documents to which it is a party does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(i)    Release by the 2017-2 Trustee.  The 2017-2 Trustee (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2017-2 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer, Funding 2017-2 or the 2017-2 Trust to use Collections on its behalf contrary to clause (i)(i).  The 2017-2 Trust agrees that the lien and security interest granted to the 2017-2 Trustee pursuant to the 2017-2 Securitization Documents to which it is a party does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(j)    Release by the 2017-3 Trustee.  The 2017-3 Trustee (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, 

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the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2017-3 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer, Funding 2017-3 or the 2017-3 Trust to use Collections on its behalf contrary to clause (j)(i).  The 2017-3 Trust agrees that the lien and security interest granted to the 2017-3 Trustee pursuant to the 2017-3 Securitization Documents to which it is a party does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(k)    Release by the 2018-1 Trustee.  The 2018-1 Trustee (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the 2018-1 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer, Funding 2018-1 or the 2018-1 Trust to use Collections on its behalf contrary to clause (k)(i).  The 2018-1 Trust agrees that the lien and security interest granted to the 2018-1 Trustee pursuant to the 2018-1 Securitization Documents to which it is a party does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(l)    Release by BMO.  BMO, as the collateral agent, (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the BMO Warehouse Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer or Warehouse Funding IV to use Collections on its behalf contrary to clause (l)(i).  BMO, as collateral agent, agrees that the lien and security interest granted to it pursuant to the BMO 

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Warehouse Documents does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(m)    Release by Comerica.  Comerica (i) releases any and all rights in and to any Collections with respect to the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans, other than amounts collected under the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans or the 2015-1 Loans which are owed to Dealers as Back-end Dealer Payments and which are subject to set off by CAC pursuant to the related Dealer Agreement and which have not been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse  Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans and the 2015-1 Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, or any successor servicer to use Collections on its behalf contrary to clause (m)(i) above.  Except for Back-end Dealer Payments to the extent provided in clause (m)(i) above, Comerica agrees that the lien and security interest granted to it pursuant to the CAC Credit Facility Documents does not and shall not attach to the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans,  the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans or the 2015-1 Loans and shall not assert any claim against the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans or the 2015-1 Loans or Collections related thereto.
(n)    Release by Flagstar.  Flagstar, as the collateral agent, (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the Flagstar Warehouse Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer or Warehouse Funding VI to use Collections on its behalf contrary to clause (n)(i).  Flagstar, as collateral agent, agrees that the lien and security interest granted to it pursuant to the Flagstar Warehouse Documents does not and shall not attach to the Comerica Loans, the Wells 

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Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Credit Suisse Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
(o)    Release by the Credit Suisse Warehouse Collateral Agent.  The Credit Suisse Warehouse Collateral Agent, as the collateral agent, (i) releases any and all rights in and to any Collections with respect to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans or in any Back-end Dealer Payments; provided, that no release shall have been granted with respect to amounts collected under any Pools which are Back-end Dealer Payments that have been set off by CAC or by Comerica pursuant to the CAC Credit Facility Documents against amounts owing under the Credit Suisse Warehouse Loans and (ii) relinquishes all rights it has or may have to require CAC, individually or as servicer, any successor servicer or Warehouse Funding VII to use Collections on its behalf contrary to clause (o)(i).  The Credit Suisse Warehouse Collateral Agent, as collateral agent, agrees that the lien and security interest granted to it pursuant to the Credit Suisse Warehouse Documents does not and shall not attach to the Comerica Loans, the Wells Fargo Warehouse Loans, the Fifth Third Loans, the BMO Warehouse Loans, the Flagstar Warehouse Loans, the 2018-1 Loans, the 2017-3 Loans, the 2017-2 Loans, the 2017-1 Loans, the 2016-3 Loans, the 2016-2 Loans, the 2016-1 Loans, the 2015-2 Loans, the 2015-1 Loans (or related Collections) or to any Back-end Dealer Payments and shall not assert any claim thereto.
2.Covenant of the CAC Entities.
(a)    Each of the CAC Entities covenants that it shall not use any right it may have under the Dealer Agreements or the Purchase Agreements, whether at the direction of Comerica, Wells Fargo, Fifth Third, BMO, Flagstar, Credit Suisse, the Credit Suisse Warehouse Collateral Agent, the 2018-1 Trustee, the 2017-3 Trustee, the 2017-2 Trustee, the 2017-1 Trustee, the 2016-3 Trustee, the 2016-2 Trustee, the 2016-1 Collateral Agent, the 2015-2 Trustee, the 2015-1 Trustee or otherwise, to set off any Collections, other than amounts which are owed to Dealers as Back-end Dealer Payments, from one Pool against amounts owed under another Pool encumbered in favor of another Creditor.
(b)    Each of the CAC Entities covenants that it will require any other person or entity which hereafter acquires any security interest in the Pools, Dealer Agreements, Purchased Loans and related assets from a CAC Entity to become parties to this Agreement by executing an amendment or acknowledgment, in form and substance reasonably satisfactory to CAC and the Creditors, by which such persons or entities agree to be bound by the terms of this Agreement, and delivering such signed amendment or acknowledgement hereof to each of the CAC Entities and the Creditors; provided, however, that in the event the amount owed by the CAC Entities to any Creditor shall be reduced to zero and such Creditor shall have no obligation or agreement to make any further advances to any CAC Entity, such Creditor shall have no rights under this Section 2(b).
3.Turnover of Proceeds.  The parties hereto agree that if, at any time, a Creditor (a “Receiving Creditor”) (x) receives any payment, distribution, security or the proceeds thereof to 

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which another Creditor or Creditors shall, under the terms of Section 1 of this Agreement, be entitled (the “Wrong Payments”) and (y) the Receiving Creditor either (A) had actual knowledge, at the time of such receipt, that such payment, distribution or proceeds were wrongfully received by it or (B) another Creditor or Creditors shall have given written notice to the Receiving Creditor, prior to such receipt, of its good faith belief that such payments, distributions or proceeds are being misapplied, and such notice contains evidence reasonably satisfactory to the Receiving Creditor of such misapplication, then such Receiving Creditor shall receive and hold the same separately and in trust for the benefit of, and shall forthwith pay over and deliver the same to the relevant Creditor.  Without limiting the rights and remedies of the other Creditors, to the extent the Wrong Payments have been received and applied by the Receiving Creditor making the turnover of the same impossible, the Receiving Creditor agrees that such Wrong Payments shall be netted against future payments to which it is entitled under the relevant Financing Documents.  For purposes of the foregoing, (i) the actual knowledge of the 2018-1 Trustee shall be determined based on the actual knowledge of the 2018-1 Trustee’s Responsible Officers (as defined in the 2018-1 Indenture), it being understood that each such Responsible Officer shall have no duty to make any inquiry regarding the propriety of any payment, distribution or proceeds, (ii) the actual knowledge of the 2017-3 Trustee shall be determined based on the actual knowledge of the 2017-3 Trustee’s Responsible Officers (as defined in the 2017-3 Indenture), it being understood that each such Responsible Officer shall have no duty to make any inquiry regarding the propriety of any payment, distribution or proceeds, (iii) the actual knowledge of the 2017-2 Trustee shall be determined based on the actual knowledge of the 2017-2 Trustee’s Responsible Officers (as defined in the 2017-2 Indenture), it being understood that each such Responsible Officer shall have no duty to make any inquiry regarding the propriety of any payment, distribution or proceeds, (iv) the actual knowledge of the 2017-1 Trustee shall be determined based on the actual knowledge of the 2017-1 Trustee’s Responsible Officers (as defined in the 2017-1 Indenture), it being understood that each such Responsible Officer shall have no duty to make any inquiry regarding the propriety of any payment, distribution or proceeds, (v) the actual knowledge of the 2016-3 Trustee shall be determined based on the actual knowledge of the 2016-3 Trustee’s Responsible Officers (as defined in the 2016-3 Indenture), it being understood that each such Responsible Officer shall have no duty to make any inquiry regarding the propriety of any payment, distribution or proceeds, (vi) the actual knowledge of the 2016-2 Trustee shall be determined based on the actual knowledge of the 2016-2 Trustee’s Responsible Officers (as defined in the 2016-2 Indenture), it being understood that each such Responsible Officer shall have no duty to make any inquiry regarding the propriety of any payment, distribution or proceeds, (vii) the actual knowledge of the 2015-2 Trustee shall be determined based on the actual knowledge of the 2015-2 Trustee’s Responsible Officers (as defined in the 2015-2 Indenture), it being understood that each such Responsible Officer shall have no duty to make any inquiry regarding the propriety of any payment, distribution or proceeds and (viii) the actual knowledge of the 2015-1 Trustee shall be determined based on the actual knowledge of the 2015-1 Trustee’s Responsible Officers (as defined in the 2015-1 Indenture), it being understood that each such Responsible Officer shall have no duty to make any inquiry regarding the propriety of any payment, distribution or proceeds.
4.Further Assurances.  Each Creditor and CAC Entity agrees that it shall be bound by all of the provisions of this Agreement.  Without limiting any other provision hereof, each of the Creditors and CAC Entities agrees that it will promptly execute such instruments, notices or other 

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documents as may be reasonably requested in writing by any party hereto for the purpose of confirming the provisions of this Agreement or better effectuating the intent hereof.  CAC will reimburse each Creditor for all reasonable expenses incurred by such Creditor pursuant to this Section 4.
5.Governing Law; Jurisdiction; Waiver of Jury Trial.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York.  Each of the parties hereto agrees to the non-exclusive jurisdiction of any federal court located within the State of New York.  Each of the parties hereto hereby waives any objection based on forum non conveniens and any objection to venue of any action instituted hereunder in any of the aforementioned courts, and consents to the granting of such legal or equitable relief as is deemed appropriate by such court. TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO IRREVOCABLY WAIVES ALL RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT, ANY OTHER BASIC DOCUMENT, OR ANY MATTER ARISING HEREUNDER OR THEREUNDER.
6.Counterparts.  This Agreement may be executed in two or more counterparts including facsimile transmission thereof (and by different parties on separate counterparts), each of which shall be an original, but all of which together shall constitute one and the same instrument.
7.Severability.  If any one or more of the covenants, agreements, provisions or terms of this Agreement shall for any reason whatsoever be held invalid, then such covenants, agreements, provisions, or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement.
8.No Proceedings.  Each of the parties hereto hereby agrees that it will not institute against, or join any other person in instituting against Warehouse Funding II, Warehouse Funding IV, Warehouse Funding V, Warehouse Funding VI, Warehouse Funding VII, Funding 2018-1, the 2018-1 Trust, Funding 2017-3, the 2017-3 Trust, Funding 2017-2, the 2017-2 Trust, Funding 2017-1, the 2017-1 Trust, Funding 2016-3, the 2016-3 Trust, Funding 2016-2, the 2016-2 Trust, Funding 2016-1, Funding 2015-2, the 2015-2 Trust, Funding 2015-1, the 2015-1 Trust, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any federal or state bankruptcy or similar law so long as there shall not have elapsed one year and one day after there are no remaining amounts owed to any of the Creditors by any of the CAC Entities pursuant to the Wells Fargo Warehouse Documents, the Fifth Third Warehouse Documents, the BMO Warehouse Documents, the Flagstar Warehouse Documents, the Credit Suisse Warehouse Documents, the 2018-1 Securitization Documents, the 2017-3 Securitization Documents, the 2017-2 Securitization Documents, the 2017-1 Securitization Documents, the 2016-3 Securitization Documents, the 2016-2 Securitization Documents, the 2016-1 Securitization Documents, the 2015-2 Securitization Documents and the 2015-1 Securitization Documents.
9.Amendment.  This Agreement and the rights and obligations of the parties hereunder may not be changed orally, but only by an instrument in writing executed by all of the parties hereto; provided that if the amount owed by the CAC Entities to any Creditor shall be reduced to zero and 

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such Creditor shall have no obligation or agreement to make any further advances to any CAC Entity, this Agreement may be amended by the other parties hereto without the consent of such Creditor.
10.No Third Party Beneficiaries.  This Agreement is not intended to confer upon any person other than the parties hereto any rights or remedies hereunder.
11.Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns, including any successor or assignor to the 2018-1 Trustee under the 2018-1 Securitization Documents, including any successor or assignor to the 2017-3 Trustee under the 2017-3 Securitization Documents, any successor or assignor to the 2017-2 Trustee under the 2017-2 Securitization Documents, any successor or assignor to the 2017-1 Trustee under the 2017-1 Securitization Documents, any successor or assignor to the 2016-3 Trustee under the 2016-3 Securitization Documents, any successor or assignor to the 2016-2 Trustee under the 2016-2 Securitization Documents, any successor or assignor to the 2015-2 Trustee under the 2015-2 Securitization Documents and any successor or assignor to the 2015-1 Trustee under the 2015-1 Securitization Documents.
12.Notices.  Except as otherwise provided herein, all notices or demand hereunder to the parties hereto shall be sufficient if made in writing, and: (i) sent via certified or registered mail (or the equivalent thereof), postage prepaid, (ii) delivered by messenger or overnight courier, or (iii) transmitted via facsimile with a confirmation of the receipt thereof.  Notice shall be deemed to be given for purposes of this Agreement on the day of receipt.  Unless otherwise specified in a notice sent or delivered in accordance with the foregoing provisions of this Section, notices, demands and other communications in writing shall be given to or made upon the respective parties hereto: (a) in the case of any of the CAC Entities, to Silver Triangle Building, 25505 West Twelve Mile Road, Southfield, Michigan 48034-8339, Attention: Douglas W. Busk, telephone: (248) 353-2700 (ext. 4432), facsimile: (866) 743-2704; (b) in the case of the 2018-1 Trust, the 2017-3 Trust, the 2017-2 Trust, the 2017-1 Trust, the 2016-3 Trust, the 2016-2 Trust, the 2015-2 Trust and the 2015-1 Trust also to 300 Delaware Avenue, 9th Floor, Wilmington, Delaware 19801 Attention: Nicole Poole, telephone: (302) 576-3704, facsimile: (302) 576-3717; (c) in the case of Fifth Third, to 38 Fountain Square Plaza, MD 109046, Cincinnati, Ohio 45263, Attention: Brian Gardner, telephone: (513) 534-7949, facsimile: (513) 534-0319; (d) in the case of BMO, to Bank of Montreal, 115 South LaSalle Street, 20th Floor West, Chicago, Illinois  60603, Attention: Karen Louie, Facsimile No.: (312) 293-4948, Confirmation No.: (312) 293-4410; (e) in the case of the 2018-1 Trustee, 2017-3 Trustee, the 2017-2 Trustee, the 2017-1 Trustee, the 2016-3 Trustee, the 2016-2 Trustee, the 2016-1 Collateral Agent, the 2015-2 Trustee and the 2015-1 Trustee to MAC N9300-061, 600 S. 4th Street, Minneapolis, Minnesota 55479 Attention: Corporate Trust Services – Asset-Backed Administration, telephone: (612) 667-8058, facsimile: (612) 667-3464; (f) in the case of Comerica, to 411 West Lafayette, 7th Floor, MC: 3394, Detroit, Michigan 48226, Attention: Anthony E. Lemelin, telephone: (313) 222-9224, facsimile: (313) 222-3716; (g) in the case of Flagstar, to 5151 Corporate Drive, Troy, Michigan 48098, Attention: Kelly Hamrick, telephone: (248)-312-2593, facsimile: (248)-250-5845; (h) in the case of the Credit Suisse Warehouse Collateral Agent, to 600 S. 4th Street, MAC N9300-061, Minneapolis, Minnesota 55479, Attention: Corporate Trust Services — Asset-Backed Administration, telephone: (612) 667-8058, facsimile: (612) 667-3464.

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13.Termination.  Each party’s rights and obligations under this Agreement shall terminate at the time all amounts due to or owed by such party have been paid in full and such party’s applicable Financing Documents have been terminated so long as each party whose rights and obligations are subject to termination pursuant to this Section 13 (i) has no actual knowledge or written notice of payments, distributions, security or the proceeds thereof to which another Creditor or Creditors is entitled, as provided in Section 3 hereof, and (ii) has not received a written notice from Comerica under the CAC Credit Facility Documents that there is a “Default” or an “Event of Default” (as such terms are defined therein) at the time of the termination of the applicable Financing Documents.
14.Integration; Termination of Prior Agreement.  This Agreement sets forth the entire understanding of the parties relating to the subject matter hereof, and all prior understandings, written or oral, are superseded by this Agreement.  Without limiting the generality of the foregoing, this Agreement is intended to supersede the Prior Agreement in its entirety.  Each of Comerica, Wells Fargo, Fifth Third, BMO, Flagstar, the Credit Suisse Warehouse Collateral Agent, the 2018-1 Trustee, the 2017-3 Trustee, the 2017-2 Trustee, the 2017-1 Trustee, the 2016-3 Trustee, the 2016-2 Trustee, the 2016-1 Collateral Agent, the 2015-2 Trustee, the 2015-1 Trustee and the CAC Entities that were parties to the Prior Agreement further acknowledge and agree that, as among themselves, this Agreement supersedes the Prior Agreement with respect to their rights as against each other and that this Agreement shall govern their rights against each other and the other parties hereto.
15.PATRIOT Act.    The parties hereto acknowledge that in accordance with the Customer Identification Program (CIP) requirements under the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Title III of Pub. L. 107 56 (signed into law October 26, 2001) and its implementing regulations (collectively, the “USA PATRIOT Act”), each of the Credit Suisse Warehouse Collateral Agent, the 2018-1 Trustee, the 2017-3 Trustee, the 2017-2 Trustee, the 2017-1 Trustee, the 2016-3 Trustee, the 2016-2 Trustee, the 2016-1 Collateral Agent, the 2015-2 Trustee and the 2015-1 Trustee (collectively, and as applicable, the “Trustees”) in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustees. Each party hereby agrees that it shall provide the Trustees with such information as the Trustees may request that will help Trustees to identify and verify each party’s identity, including without limitation each party’s name, physical address, tax identification number, organizational documents, certificate of good standing, license to do business, or other pertinent identifying information.
[remainder of page intentionally left blank]

17

This Amended and Restated Intercreditor Agreement has been executed and delivered by the parties hereto as of the date first above written.

CREDIT ACCEPTANCE CORPORATION
/s/ Douglas W. Busk              
By:    Douglas W. Busk 
Title: Senior Vice President and Treasurer
CAC WAREHOUSE FUNDING CORPORATION II
/s/ Douglas W. Busk              
By:    Douglas W. Busk 
Title: Treasurer
CAC WAREHOUSE FUNDING LLC IV
/s/ Douglas W. Busk               
By:    Douglas W. Busk 
Title: Treasurer
CAC WAREHOUSE FUNDING LLC V
/s/ Douglas W. Busk               
By:    Douglas W. Busk 
Title: Treasurer
CAC WAREHOUSE FUNDING LLC VI
/s/ Douglas W. Busk               
By:    Douglas W. Busk 
Title: Treasurer
CAC WAREHOUSE FUNDING LLC VII
/s/ Douglas W. Busk               
By:    Douglas W. Busk 
Title: Treasurer
CREDIT ACCEPTANCE FUNDING LLC 2018-1
/s/ Douglas W. Busk              
By:    Douglas W. Busk 
Title: Treasurer 

[A&R Intercreditor Agreement]

CREDIT ACCEPTANCE FUNDING LLC 2017-3
/s/ Douglas W. Busk              
By:    Douglas W. Busk 
Title: Treasurer
CREDIT ACCEPTANCE FUNDING LLC 2017-2
/s/ Douglas W. Busk              
By:    Douglas W. Busk 
Title: Treasurer
CREDIT ACCEPTANCE FUNDING LLC 2017-1
/s/ Douglas W. Busk              
By:    Douglas W. Busk 
Title: Treasurer
CREDIT ACCEPTANCE FUNDING LLC 2016-3
/s/ Douglas W. Busk              
By:    Douglas W. Busk 
Title: Treasurer

CREDIT ACCEPTANCE FUNDING LLC 2016-2

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

CREDIT ACCEPTANCE FUNDING LLC 2016-1

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

CREDIT ACCEPTANCE FUNDING LLC 2015-2

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

[A&R Intercreditor Agreement]

CREDIT ACCEPTANCE FUNDING LLC 2015-1

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

CREDIT ACCEPTANCE AUTO  
LOAN TRUST 2018-1 
 
By: U.S. Bank Trust National Association,  
Not In Its Individual Capacity But Solely  
As Owner Trustee 
 
/s/ Nicole Pool    e             
By:    Nicole Poole 
Title: Vice President

CREDIT ACCEPTANCE AUTO  
LOAN TRUST 2017-3 
 
By: U.S. Bank Trust National Association,  
Not In Its Individual Capacity But Solely  
As Owner Trustee 
 
/s/ Nicole Poole             
By:    Nicole Poole 
Title: Vice President 

CREDIT ACCEPTANCE AUTO  
LOAN TRUST 2017-2 
 
By: U.S. Bank Trust National Association,  
Not In Its Individual Capacity But Solely  
As Owner Trustee 

/s/ Nicole Poole             
By:    Nicole Poole 
Title: Vice President

CREDIT ACCEPTANCE AUTO  
LOAN TRUST 2017-1 
 

[A&R Intercreditor Agreement]

By: U.S. Bank Trust National Association,  
Not In Its Individual Capacity But Solely  
As Owner Trustee 
 
/s/ Nicole Poole             
By:    Nicole Poole 
Title: Vice President

CREDIT ACCEPTANCE AUTO  
LOAN TRUST 2016-3 
 
By: U.S. Bank Trust National Association,  
Not In Its Individual Capacity But Solely  
As Owner Trustee 
 
/s/ Nicole Poole             
By:    Nicole Poole 
Title: Vice President

CREDIT ACCEPTANCE AUTO  
LOAN TRUST 2016-2 
 
By: U.S. Bank Trust National Association,  
Not In Its Individual Capacity But Solely  
As Owner Trustee 
 
/s/ Nicole Poole             
By:    Nicole Poole 
Title: Vice President

CREDIT ACCEPTANCE AUTO  
LOAN TRUST 2015-2 
 
By: U.S. Bank Trust National Association,  
Not In Its Individual Capacity But Solely  
As Owner Trustee 
 
/s/ Nicole Poole             
By:    Nicole Poole 
Title: Vice President

CREDIT ACCEPTANCE AUTO  
LOAN TRUST 2015-1 

[A&R Intercreditor Agreement]

 
By: U.S. Bank Trust National Association,  
Not In Its Individual Capacity But Solely  
As Owner Trustee
 
/s/ Nicole Poole             
By:    Nicole Poole 
Title: Vice President

[A&R Intercreditor Agreement]

WELLS FARGO BANK, NATIONAL ASSOCIATION,  
Not In Its Individual Capacity But Solely as the 2015-1 Trustee, 
the 2015-2 Trustee, the 2016-1 Collateral Agent, the 2016-2 Trustee, 
the 2016-3 Trustee, the 2017-1 Trustee, the 2017-2 Trustee, 
the 2017-3 Trustee, the 2018-1 Trustee, the Collateral Agent under the Wells Fargo
Warehouse Documents and the Collateral Agent under the Credit Suisse 
Warehouse Documents 

 
/s/ Scott J. Olmsted                 
By: Scott J. Olmsted     
Title: Assistant Vice President

[A&R Intercreditor Agreement]

FIFTH THIRD BANK,  
As Lender and Collateral Agent
 
/s/ Patrick Berning                 
By: Patrick Berning    
Title: Officer

[A&R Intercreditor Agreement]

BANK OF MONTREAL 
As Lender and Collateral Agent

/s/ Karen Louie                 
By: Karen Louie     
Title:  Director

[A&R Intercreditor Agreement]

COMERICA BANK,  
As Agent

/s/ Paul G. Russo                 
By: Paul G. Russo     
Title: Vice President

[A&R Intercreditor Agreement]

FLAGSTAR BANK, FSB,  
As Lender and Collateral Agent

/s/ Kelly Hamrick                 
By: Kelly Hamrick    
Title: First Vice President

 

[A&R Intercreditor Agreement]

APPENDIX A 
DEFINITIONS
2015-1 Indenture: the Indenture, dated as of January 29, 2015, between the 2015-1 Trustee and the 2015-1 Trust, as amended from time to time.
2015-1 Securitization Documents: the Sale and Servicing Agreement, dated as of January 29, 2015, among the 2015-1 Trust, Funding 2015-1, CAC, the 2015-1 Trustee, and Wells Fargo Bank, National Association, as the Backup Servicer, the 2015-1 Indenture, and the documents related thereto, as amended from time to time.
2015-2 Indenture: the Indenture, dated as of August 20, 2015, between the 2015-2 Trustee and the 2015-2 Trust, as amended from time to time.
2015-2 Securitization Documents: the Sale and Servicing Agreement, dated as of August 20, 2015, among the 2015-2 Trust, Funding 2015-2, CAC, the 2015-2 Trustee, and Wells Fargo Bank, National Association, as the Backup Servicer, the 2015-2 Indenture, and the documents related thereto, as amended from time to time.
2016-1 Securitization Documents: the Loan and Security Agreement, dated as of February 26, 2016, among Funding 2016-1, CAC, Wells Fargo Bank, National Association, Bank of Montreal and the other parties from time to time party thereto, and the documents related thereto, as amended from time to time.
2016-2 Indenture: the Indenture, dated as of May 12, 2016, between the 2016-2 Trustee and the 2016-2 Trust, as amended from time to time.
2016-2 Securitization Documents: the Sale and Servicing Agreement, dated as of May 12, 2016, among the 2016-2 Trust, Funding 2016-2, CAC, the 2016-2 Trustee, and Wells Fargo Bank, National Association, as the Backup Servicer, the 2016-2 Indenture, and the documents related thereto, as amended from time to time.
2016-3 Indenture: the Indenture, dated as of October 27, 2016, between the 2016-3 Trustee and the 2016-3 Trust, as amended from time to time.
2016-3 Securitization Documents: the Sale and Servicing Agreement, dated as of October 27, 2016, among the 2016-3 Trust, Funding 2016-3, CAC, the 2016-3 Trustee, and Wells Fargo Bank, National Association, as the Backup Servicer, the 2016-3 Indenture, and the documents related thereto, as amended from time to time.
2017-1 Indenture: the Indenture, dated as of February 23, 2017, between the 2017-1 Trustee and the 2017-1 Trust, as amended from time to time.
2017-1 Securitization Documents: the Sale and Servicing Agreement, dated as of February 23, 2017, among the 2017-1 Trust, Funding 2017-1, CAC, the 2017-1 Trustee, and Wells Fargo Bank, National Association, as the Backup Servicer, the 2017-1 Indenture, and the documents related thereto, as amended from time to time.

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11988708-NYCSR07A - MSW

2017-2 Indenture: the Indenture, dated as of June 29, 2017, between the 2017-2 Trustee and the 2017-2 Trust, as amended from time to time.
2017-2 Securitization Documents: the Sale and Servicing Agreement, dated as of June 29, 2017, among the 2017-2 Trust, Funding 2017-2, CAC, the 2017-2 Trustee, and Wells Fargo Bank, National Association, as the Backup Servicer, the 2017-2 Indenture, and the documents related thereto, as amended from time to time.
2017-3 Indenture: the Indenture, dated as of October 26, 2017, between the 2017-3 Trustee and the 2017-3 Trust, as amended from time to time.
2017-3 Securitization Documents: the Sale and Servicing Agreement, dated as of October 26, 2017, among the 2017-3 Trust, Funding 2017-3, CAC, the 2017-3 Trustee, and Wells Fargo Bank, National Association, as the Backup Servicer, the 2017-3 Indenture, and the documents related thereto, as amended from time to time.
2018-1 Indenture: the Indenture, dated as of February 22, 2018, between the 2018-1 Trustee and the 2018-1 Trust, as amended from time to time.
2018-1 Securitization Documents: the Sale and Servicing Agreement, dated as of February 22, 2018, among the 2018-1 Trust, Funding 2018-1, CAC, the 2018-1 Trustee, and Wells Fargo Bank, National Association, as the Backup Servicer, the 2018-1 Indenture, and the documents related thereto, as amended from time to time.
Advance: Amounts advanced to a Dealer upon the acceptance of a Contract by CAC pursuant to a Dealer Agreement.
BMO Warehouse Documents: The Loan and Security Agreement, dated as of August 19, 2011, among Warehouse Funding IV, CAC, BMO, and the other parties from time to time party thereto, and the documents related thereto, as amended from time to time.
CAC Credit Facility Documents: The Sixth Amended and Restated Credit Acceptance Corporation Credit Agreement, dated as of June 23, 2014, by and among the banks signatory thereto, Comerica and CAC, and the documents related thereto, as amended from time to time.
CAC Entities: Each of CAC, Warehouse Funding II, Warehouse Funding IV, Warehouse Funding V, Warehouse Funding VI, Warehouse Funding VII, Funding 2018-1, the 2018-1 Trust, Funding 2017-3, the 2017-3 Trust, Funding 2017-2, the 2017-2 Trust, Funding 2017-1, the 2017-1 Trust, Funding 2016-3, the 2016-3 Trust, Funding 2016-2, the 2016-2 Trust, Funding 2016-1, Funding 2015-2, the 2015-2 Trust, Funding 2015-1 and the 2015-1 Trust.
Collections: All money, amounts or other payments received or collected by CAC, individually or as servicer, or any successor servicer or any other CAC entity with respect to a contract in the form of cash, checks, wire transfers or other form of payment in accordance with the Contracts or the Dealer Agreements, including, without limitation, with respect to Pool amounts collected under any other Pool which are Back-end Dealer Payments that have been set off by CAC 

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21988708-NYCSR07A - MSW

or by Comerica pursuant to the CAC Credit Facility Documents, against amounts owing under such Pool.
Contract: A retail installment contract for the sale of motor vehicles assigned outright by Dealers to CAC or a subsidiary of CAC or written by Dealers in the name of CAC or a subsidiary of CAC (and funded by CAC or such subsidiary) or assigned by Dealers to CAC or a subsidiary of CAC, as nominee for the Dealer, for administration, servicing, and collection, in each case pursuant to an applicable Dealer Agreement.
Credit Suisse Warehouse Documents: The Loan and Security Agreement, dated as of December 1, 2017, among Warehouse Funding VII, CAC, Credit Suisse AG, New York Branch, 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.
Creditor: Each of Comerica, Wells Fargo, Fifth Third, BMO, Flagstar, the Credit Suisse Warehouse Collateral Agent, the 2018-1 Trustee, the 2017-3 Trustee, the 2017-2 Trustee, the 2017-1 Trustee, the 2016-3 Trustee, the 2016-2 Trustee, the 2016-1 Collateral Agent, the 2015-2 Trustee and the 2015-1 Trustee.
Dealer: A person engaged in the business of the retail sale or lease of new or used motor vehicles, including both businesses exclusively selling used motor vehicles and businesses principally selling new motor vehicles, but having a used vehicle department, including any such person which constitutes an affiliate of CAC.
Dealer Agreement: The sales and/or servicing agreements between CAC or its subsidiaries and a participating Dealer which sets forth the terms and conditions under which CAC or its subsidiaries (i) accepts, as nominee for such Dealer, the assignment of Contracts for purposes of administration, servicing and collection and under which CAC or its subsidiary may make advances to such Dealers and (ii) accepts outright assignments of Contracts from Dealers or funds Contracts originated by such Dealer in the name of CAC or any of its subsidiaries, in each case as such agreements may be in effect from time to time.
Financing Documents: The CAC Credit Facility Documents, the Wells Fargo Warehouse Documents, the Fifth Third Warehouse Documents, the Flagstar Warehouse Documents, the BMO Warehouse Documents, the Credit Suisse Warehouse Documents, the 2018-1 Securitization Documents, the 2017-3 Securitization Documents, the 2017-2 Securitization Documents, the 2017-1 Securitization Documents, the 2016-3 Securitization Documents, the 2016-2 Securitization Documents, the 2016-1 Securitization Documents, the 2015-2 Securitization Documents and the 2015-1 Securitization Documents.
Fifth Third Warehouse Documents: The Loan and Security Agreement, dated as of September 25, 2014, among Warehouse Funding V, CAC, Fifth Third, and the other parties from time to time party thereto, and the documents related thereto, as amended from time to time.

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31988708-NYCSR07A - MSW

Flagstar Warehouse Documents: The Loan and Security Agreement, dated as of September 30, 2015, among Warehouse Funding VI, CAC, Flagstar, and the other parties from time to time party thereto, and the documents related thereto, as amended from time to time.
Pool: A grouping on the books and records of CAC or any of its subsidiaries of Advances or Contracts originated or to be originated with CAC or any of its subsidiaries by a Dealer and bearing the same pool identification number assigned by CAC’s computer system.
Prior Agreement: The Amended and Restated Intercreditor Agreement, dated as of December 1, 2017, among CAC, Warehouse Funding II, Warehouse Funding IV, Warehouse Funding V, Warehouse Funding VI, Warehouse Funding VII, Funding 2017-3, Funding 2017-2, Funding 2017-1, Funding 2016-3, Funding 2016-2, Funding 2016-1, Funding 2015-2, Funding 2015-1, the 2017-3 Trust, the 2017-2 Trust, the 2017-1 Trust , the 2016-3 Trust, the 2016-2 Trust, the 2015-2 Trust, the 2015-1 Trust, Wells Fargo, Fifth Third, the 2017-3 Trustee, the 2017-2 Trustee, the 2017-1 Trustee, the 2016-3 Trustee, the 2016-2 Trustee, the 2016-1 Collateral Agent, the 2015-2 Trustee, the 2015-1 Trustee, the Credit Suisse Warehouse Collateral Agent, BMO, Flagstar and Comerica.
Purchase Agreement: The purchase agreements between CAC or its subsidiaries and a participating Dealer which sets forth the terms and conditions under which CAC or its subsidiaries purchases from a Dealer the Purchased Loans and related Contracts, as such agreements may be in effect from time to time.
Purchased Loan: A motor vehicle retail installment loan relating to the sale of an automobile or light-duty truck originated by a Dealer, purchased by CAC or a subsidiary from such Dealer and evidenced by a motor vehicle retail installment sales contract.
Wells Fargo Warehouse Documents: The Sixth Amended and Restated Loan And Security Agreement, dated as of June 23, 2016, among Warehouse Funding II, CAC, Variable Funding Capital Company LLC, Wells Fargo Securities, LLC, 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.

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41988708-NYCSR07A - MSWtdoc_Ex_10_12

		
			Exhibit 10.12
		

		
			EXECUTIVE SEVERANCE AGREEMENT
		

		
			This Executive Severance Agreement (“Agreement”) is made effective as of July 17, 2017 (“Effective Date”), by and between Teladoc, Inc. (the “Company”) and Mr. Peter McClennen, an individual resident in the Commonwealth of Massachusetts (“Executive”).
		

		
			WHEREAS, Executive is a key employee of the Company and the Company and Executive desire to set forth herein the terms and conditions of Executive’s compensation in the event of a termination of Executive’s employment under certain circumstances.
		

		
			NOW, THEREFORE, the parties agree as follows:
		

		
			1.         Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:
		

		
			(a)        “Affiliate” means with respect to any person or entity, any other person or entity that, directly or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, such person or entity.  For purposes of this definition, “control”, when used with respect to any person or entity, means the power to direct the management and policies of such person or entity, directly or indirectly, whether through ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.
		

		
			(b)        “Base Salary” means Executive’s base salary at the rate in effect on the date of Executive’s Qualifying Termination (disregarding any decrease in such base salary that constitutes a Good Reason event).
		

		
			(c)        “Board” shall mean the Board of Directors of the Company.
		

		
			(d)        “Cause”  shall mean any of the following: (i) Executive’s breach of Executive’s duty of loyalty to the Company or Executive’s willful breach of Executive’s duty of care to the Company; (ii) Executive’s material failure or refusal to comply with reasonable written policies, standards and regulations established by the Board from time to time which failure or refusal, if curable, is not cured to the reasonable satisfaction of the Board during the fifteen (15) day period following written notice of such failure or refusal from the Board; (iii) Executive’s  commission of a felony, an act of theft,  embezzlement or misappropriation of funds or the property of the Company or its subsidiaries of material value or an act of fraud involving the Company or its subsidiaries; (iv) Executive’s willful misconduct or gross negligence which causes or reasonably could cause (for example, if it became publicly known) material harm to the Company’s standing, condition or reputation; (v) Executive’s material violation of the Company’s Code of Ethics (or similar written policies concerning ethical behavior) or written policies concerning harassment or discrimination; or (vi) any material breach by Executive of the provisions of the Confidentiality Agreement or a material provision of this Agreement.
		

		
			(e)        “Change of Control” shall mean (other than an initial public offering of the Company) (i) any transaction or series of related transactions resulting in the consummation of a merger, combination, consolidation or other reorganization of the Company with or into any
		

		
			
		

		
			

		 

		

			Page 1 of 13

		

 

		

		
			third party, other than any such merger, combination, consolidation or reorganization following which the holders of capital stock of the Company immediately prior to such merger, combination, consolidation or reorganization continue to hold, solely in respect of their interests in the Company’s capital stock immediately prior to such merger, combination, consolidation or reorganization, at least fifty-five percent (55%) of the voting power of the outstanding capital stock of the Company or the surviving or acquiring entity; (ii) any transaction or series of related transactions resulting in the consummation of the sale, lease, exclusive or irrevocable licensing or other transfer of all or substantially all of the assets of the Company to a third party, other than any such sale, lease, exclusive or irrevocable licensing or transfer following which the holders of capital stock of the Company immediately prior to such sale, lease, exclusive or irrevocable licensing or transfer continue to hold, solely in respect of their interests in the Company’s capital stock immediately prior to such sale, lease, exclusive or irrevocable licensing or transfer, at least fifty-five percent (55%) of the voting power of the outstanding capital stock of the acquiring entity; or (iii) any transaction or series of related transactions resulting in the transfer or issuance, whether by merger, combination, consolidation or otherwise, of Company securities to a person or group if, after such transfer or issuance, such person or group would hold fifty-five percent (55%) of the voting power of the outstanding capital stock of the Company; provided that, with respect to any payments or benefits payable to Executive pursuant to this Agreement that may be considered deferred compensation under Section 409A of the Code, the transaction or event described in clause (i), (ii) or (iii) shall only constitute a Change of Control for purposes of this Agreement if such transaction or event also constitutes a “change in control event,” as defined in Treasury Regulation Section 1.409A-3(i)(5).
		

		
			(f)        “Code” shall mean the Internal Revenue Code of 1986, as amended, and the Treasury Regulations and other interpretive guidance thereunder.
		

		
			(g)        “Confidentiality Agreement” shall mean the Employee Confidentiality and Proprietary Rights Agreement between the Company and Executive dated March 1, 2017.
		

		
			(h)        “Good Reason” shall mean the occurrence of any of the following events or conditions without Executive’s written consent:  (i) a material diminution in Executive’s base salary or target annual bonus level; (ii) a material diminution in Executive’s authority, duties or responsibilities, other than as a result of a Change of Control immediately after which Executive holds a position with the Company or its successor (or any other entity that owns substantially all of the Company’s business after such sale) that is substantially equivalent with respect to the Company’s business as Executive held immediately prior to such Change of Control; (iii) a change in the geographic location of Executive’s principal place of employment to any location that is more than seventy-five (75) miles from the location immediately prior to such change; or (iv) the failure of the Company to obtain an agreement from any successor to all or substantially all of the business or assets of the Company to assume this Agreement as contemplated in Section 8(a) of this Agreement;  provided that Executive must provide written notice to the Company of the occurrence of any of the foregoing events or conditions within 60 days of the occurrence of such event and such event or condition must remain uncured for 30 days following the Company’s receipt of such written notice.  Any voluntary termination for “Good Reason” following such 30 day cure period must occur no later than the date that is 30 days following the expiration of the Company’s cure period.
		

		
			
		

		
			

		 

		

			Page 2 of 13

		

 

		

		
			(i)         “Qualifying Termination” means (i) a termination by Executive of Executive’s  employment with the Company for Good Reason or (ii) a termination by the Company of Executive’s employment with the Company without Cause.
		

		
			(j)         “Target Bonus Amount” means Executive’s target annual bonus amount in effect at the time of Executive’s Qualifying Termination (disregarding any decrease in such target annual bonus amount that constitutes a Good Reason event).
		

		
			2.         Severance.
		

		
			(a)        Severance Upon Qualifying Termination.  If Executive has a Qualifying Termination that does not occur on the date of or within twelve (12) months following a Change of Control, then subject to (x) the requirements of this Section 2,  (y) Executive’s continued compliance with the terms of the Confidentiality Agreement and Sections 4 and 5 and (z) the terms of Section 8, Executive shall be entitled to receive the following payments and benefits:
		

		
			(i)         The Company shall pay to Executive (A) his or her fully earned but unpaid base salary through the date of Executive’s Qualifying Termination, (B) any accrued but unpaid paid time off and (C) any other amounts or benefits, if any, under the Company’s employee benefit plans, programs or arrangements to which Executive may be entitled pursuant to the terms of such plans, programs or arrangements or applicable law, payable in accordance with the terms of such plans, programs or arrangements or as otherwise required by applicable law (collectively, the “Accrued Rights”);
		

		
			(ii)       Executive shall receive continued payment of the Base Salary for a period of six  (6) months following the termination date (the “Salary Severance Period”) in accordance with the Company’s ordinary payroll practices;
		

		
			(iii)      The Company will pay Executive the amount of any earned but unpaid annual bonus for the year immediately prior to the year in which Executive’s Qualifying Termination occurs, as determined by the Board (or an authorized committee) in its good faith discretion, payable in a lump sum at the same time annual bonuses are paid to other Company executives generally but in no event later than December 31 of the year in which Executive’s Qualifying Termination occurs;
		

		
			(iv)       If Executive timely elects continued coverage under COBRA for Executive and Executive’s covered dependents under the Company’s group health (medical, dental or vision) plans following such Qualifying Termination, then the Company shall pay the COBRA premiums necessary to continue Executive’s and his covered dependents’ health insurance coverage in effect on the termination date until the earliest of (x) six  (6)  months following the effective date of such Qualifying Termination (the “COBRA Severance Period”), (y) the date when Executive becomes eligible for substantially equivalent health insurance coverage in connection with new employment or self-employment (and Executive agrees to promptly notify the Company of such eligibility) and (z) the date Executive ceases to be eligible for COBRA continuation coverage for any reason, including plan termination (such period from the Qualifying Termination date through the earlier of (x)-(z), the “COBRA Payment Period”).  Notwithstanding the foregoing, if at any time the Company determines that its payment of
		

		
			
		

		
			

		 

		

			Page 3 of 13

		

 

		

		
			COBRA premiums on Executive’s behalf would result in a violation of applicable law (including but not limited to the 2010 Patient Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act) or an excise tax, then in lieu of paying COBRA premiums pursuant to this Section 2(a)(iv), the Company shall pay Executive on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment equal to the COBRA premium for such month, subject to applicable tax withholding, such payment to be made without regard to Executive’s payment of COBRA premiums; and
		

		
			(v)        All unvested equity or equity-based awards granted to Executive under any equity compensation plans of the Company that were scheduled to vest within six (6) months after the date of Executive’s termination or resignation shall become immediately vested as to time, with any such awards that are subject to performance-based vesting conditions remaining eligible to vest to the extent the performance conditions are satisfied during such six-month period  (provided that nothing herein shall operate to extend the term, if any, of an award beyond the final expiration date provided in the applicable award agreement or prohibit the award from being treated in substantially the same manner as awards held by Company employees in the context of a Change of Control or other corporate transaction).
		

		
			(b)        Severance Upon Qualifying Termination Occurring Within 12 Months Following a Change of Control.  If Executive has a Qualifying Termination that occurs on the date of or within twelve (12) months following a Change of Control,  then subject to (x) the requirements of this Section 2, (y) Executive’s continued compliance with the terms of the Confidentiality Agreement and Sections 4 and 5 and (z) the terms of Section 8,  Executive shall be entitled to receive the payments and benefits described in Section 2(a) above; provided that:  (i) the Salary Severance Period shall be increased to nine (9) months; (ii) the COBRA Severance Period shall be increased to nine (9) months; (iii) the Company shall pay Executive an additional amount equal to seventy-five percent (75%) of the Target Bonus Amount, payable in a lump sum on the Company’s first ordinary payroll date occurring after the effective date of Executive’s Qualifying Termination; and (iv)  in lieu of the treatment set forth in Section 2(a)(v) above, all unvested equity or equity-based awards granted to Executive under any equity compensation plans of the Company shall become immediately vested as to time and any such awards that are subject to performance-based vesting will remain eligible to vest to the extent the performance conditions are thereafter satisfied (provided that nothing herein shall operate to extend the term, if any, of an award beyond the final expiration date provided in the applicable award agreement or prohibit the award from being treated in substantially the same manner as awards held by Company employees in the context of a Change of Control or other corporate transaction).
		

		
			(c)        Other Terminations.  Upon Executive’s termination of employment for any reason other than as set forth in Section 2(a) and Section 2(b),  the Company shall pay to Executive the Accrued Rights and shall have no other or further obligations to Executive under this Agreement.  The foregoing shall be in addition to, and not in lieu of, any and all other rights and remedies which may be available to the Company under the circumstances, whether at law or in equity.
		

		
			(d)        Release.  As a condition to Executive’s receipt of any amounts set forth in Section 2(a) or Section 2(b) other than the Accrued Rights, Executive shall, within the 60 day period following the date of Executive’s Qualifying Termination, deliver (without revoking)
		

		
			
		

		
			

		 

		

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			prior to receipt of such severance benefits, an effective, general release of claims in favor of the Company or its successor, its subsidiaries and their respective directors, officers and stockholders in a form acceptable to the Company or its successor, such form to contain a reaffirmation of Executive’s promises contained in Section 4 of this Agreement and the Confidentiality Agreement and a promise not to disparage the Company, its business, or its employees, officers, directors or stockholders. The form of the general release will be provided to the Executive not later than five (5) days following the date of Executive’s Qualifying Termination.
		

		
			(e)        Exclusive Remedy; Other Arrangements.  Except as otherwise expressly required by law (e.g., COBRA) or as specifically provided herein, all of Executive’s rights to salary, severance, benefits, bonuses and other amounts (if any) accruing after the termination of Executive’s employment for any reason shall cease upon such termination.  In addition, the severance payments provided for in Section 2(a) and Section 2(b) above are intended to be paid in lieu of any severance payments Executive may otherwise be entitled to receive under any other plan, program, policy, contract or agreement with the Company or any of its Affiliates, including for the avoidance of doubt, any employment agreement or offer letter (collectively, “Other Arrangements”).  Therefore, in the event Executive becomes entitled to receive the severance payments and benefits provided under Section 2(a) or Section 2(b),  Executive shall receive the amounts provided under that Section of this Agreement and shall not be entitled to  receive any severance payments or severance benefits pursuant to any Other Arrangements.  In addition, to the extent any Other Arrangement that was entered into prior to the date of this Agreement provides for Executive to receive any payments or benefits upon a termination or a resignation of employment for any reason (such agreement a “Prior Agreement”), Executive hereby agrees that such termination pay and benefit provisions of such Prior Agreement shall be and hereby are superseded by this Agreement and from and after the date of this Agreement, such termination pay and benefit provisions of the Prior Agreement shall be and are null and void and of no further force or effect.  For the avoidance of doubt, except as may otherwise be agreed in writing between Executive and the Company or one of its Affiliates after the date of this Agreement, it is intended that the other terms and conditions of any Prior Agreement that do not provide for termination pay or benefits, including any non-competition, non-solicitation, non-disparagement, confidentiality, or assignment of inventions covenants and other similar covenants contained therein, shall remain in effect in accordance with their terms for the periods set forth in the Prior Agreement.
		

		
			(f)        Parachute Payments.
		

		
			(i)         Notwithstanding any other provisions of this Agreement, in the event that any payment or benefit by the Company or otherwise to or for the benefit of Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise (all such payments and benefits, including the payments and benefits under Section 2(a) or Section 2(b) hereof, being hereinafter referred to as the “Total Payments”), would be subject (in whole or in part) to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the Total Payments shall be reduced (in the order provided in Section 2(f)(ii)) to the minimum extent necessary to avoid the imposition of the Excise Tax on the Total Payments, but only if (1) the net amount of such Total Payments, as so reduced (and after subtracting the net amount of federal, state and local income and employment taxes on such
		

		
			
		

		
			

		 

		

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			reduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such reduced Total Payments), is greater than or equal to (2) the net amount of such Total Payments without such reduction (but after subtracting the net amount of federal, state and local income and employment taxes on such Total Payments and the amount of the Excise Tax to which Executive would be subject in respect of such unreduced Total Payments and after taking into account the phase out of itemized deductions and personal exemptions attributable to such unreduced Total Payments).
		

		
			(ii)       The Total Payments shall be reduced in the following order: (1) reduction on a pro-rata basis of any cash severance payments that are exempt from Section 409A of the Code, (2) reduction on a pro-rata basis of any non-cash severance payments or benefits that are exempt from Section 409A of the Code, (3) reduction on a pro-rata basis of any other payments or benefits that are exempt from Section 409A of the Code and (4) reduction of any payments or benefits otherwise payable to Executive on a pro-rata basis or such other manner that complies with Section 409A of the Code; provided, in the case of clauses (2), (3) and (4), that reduction of any payments attributable to the acceleration of vesting of Company equity awards shall be first applied to Company equity awards that would otherwise vest last in time.
		

		
			(iii)      All determinations regarding the application of this Section 2(f) shall be made by an accounting firm or consulting group with experience in performing calculations regarding the applicability of Section 280G of the Code and the Excise Tax selected by the Company (the “Independent Advisors”).  For purposes of determinations, no portion of the Total Payments shall be taken into account which, in the opinion of the Independent Advisors, (1) does not constitute a “parachute payment” within the meaning of Section 280G(b)(2) of the Code (including by reason of Section 280G(b)(4)(A) of the Code) or (2) constitutes reasonable compensation for services actually rendered, within the meaning of Section 280G(b)(4)(B) of the Code, in excess of the “base amount” (as defined in Section 280G(b)(3) of the Code) allocable to such reasonable compensation.  The costs of obtaining such determination and all related fees and expenses (including related fees and expenses incurred in any later audit) shall be borne by the Company.
		

		
			(iv)       In the event it is later determined that a greater reduction in the Total Payments should have been made to implement the objective and intent of this Section 2(f), the excess amount shall be returned immediately by Executive to the Company.
		

		
			(g)        Withholding.  All compensation and benefits to Executive hereunder shall be reduced by all federal, state, local and other withholdings and similar taxes and payments required by applicable law.
		

		
			3.         Condition to Severance Obligations.  The Company shall be entitled to cease all severance payments and benefits to Executive in the event of Executive’s breach of Sections 4 or 0, or any of the provisions of the Confidentiality Agreement or of any other non-competition, non-solicitation, non-disparagement, confidentiality, or assignment of inventions covenants contained in any other agreement between Executive and the Company, which other covenants are hereby incorporated by reference into this Agreement.
		

		
			
		

		
			

		 

		

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			4.         Restrictive Covenants.
		

		
			(a)        Non-Solicitation and Non-Competition.
		

		
			(i)         Non-Solicitation.  Executive agrees that, for a period of twelve (12) months from and after any termination of Executive’s employment with the Company, voluntary or involuntary, for any reason or no reason (the “Non-Compete Period”), Executive shall not (directly or indirectly, on behalf of Executive or any third party) (a) solicit, induce, recruit or encourage, or take any other action which is intended to induce or encourage or facilitate or has the effect of inducing or encouraging any of the Company’s employees to leave their employment with the Company or otherwise facilitates the hiring of any such employees by any person outside the Company; or (b) solicit, interfere with, disrupt or attempt to disrupt any past, present or prospective relationship, contractual or otherwise, between the Company and any of its actual or prospective customers, suppliers, employees or stockholders, within the Geographic Area (as defined below), other than on behalf of the Company or any of its subsidiaries, directly or indirectly, without the prior written consent of the Company.
		

		
			(ii)       Non-Competition.  In addition, during the Non-Compete Period, Executive shall not, directly or indirectly, (a) engage in (whether as an employee, agent, consultant, advisor, independent contractor, proprietor, partner, officer, director or otherwise), (b) have any ownership interest in (except for passive ownership of one percent (1%) or less of any entity whose securities have been registered under the Securities Act of 1933, as amended, or Section 12 of the Securities Exchange Act of 1934), or (c) participate in the financing, operation, management or control of, any firm, partnership, corporation, entity or business, that engages or participates in a “competing business purpose.”  The term “competing business purpose” shall mean the Company’s business, including without limitation telephone and internet based physician consultation, as conducted or planned to be conducted by the Company at any time during the course of Executive’s employment with the Company (including without limitation products and services under development as of the date of termination).
		

		
			(iii)      “Geographic Area”  means any city, county or state, or any similar subdivision thereof, in each of the United States of America.
		

		
			(iv)       Separate Covenants.  The covenants contained in Section 4(a)(i) and 4(a)(ii) shall be construed as a series of separate covenants, one for each city, county, state, or any similar subdivision in any Geographic Area and are in addition to (and not in lieu of) and may be enforced separately from, any prior non-compete, non-solicitation or other similar restrictive covenant or agreement between the Company, it affiliates or subsidiaries and Executive.  These covenants shall also be construed as a series of separate and successive covenants, one for each month of the Non-Compete Period.  Except for geographic coverage, each such separate covenant shall be deemed identical in terms to the covenants contained in Section 4(a)(i) and 4(a)(ii) above.  If, in any judicial or arbitral proceeding, a court or arbitrator refuses to enforce any of such separate covenants (or any part thereof), then such unenforceable covenant (or such part) shall be eliminated from this Agreement to the extent necessary to permit the remaining separate covenants (or portions thereof) to be enforced.  In the event that the provisions of Section 4(a)(i) and 4(a)(ii) above are deemed to exceed the time, geographic or scope limitations permitted by applicable law, then such provisions shall be reformed to the
		

		
			
		

		
			

		 

		

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			maximum time, geographic or scope limitations, as the case may be, then permitted by such law.  In the event that the applicable court or arbitrator does not exercise the power granted to it in the prior sentence, Executive and the Company agree to replace such invalid or unenforceable term or provision with a valid and enforceable term or provision that will achieve, to the extent possible, the economic, business and other purposes of such invalid or unenforceable term.  The existence or assertion of any claim by Executive against the Company, whether based on this Agreement or otherwise, shall not operate as a defense to the Company’s enforcement of the promises and covenants in the Confidentiality Agreement and this Section 4.  An alleged or actual breach of the Agreement by the Company will not be a defense to enforcement of any such promise or covenant in this Section 4 or the Confidentiality Agreement.
		

		
			(v)        Acknowledgements.  Executive acknowledges that the nature of the Company’s business is such that if Executive were to become employed by, or substantially involved in, the business of a competitor of the Company within the Non-Compete Period, it will be difficult for Executive not to rely on or use the Company’s trade secrets and confidential information.  Therefore, Executive has agreed to enter into this Agreement to reduce the likelihood of disclosure of the Company’s trade secrets and confidential information.  Executive therefore acknowledges and agrees that the promises in Section 4(a) are ancillary to an otherwise enforceable agreement contained in this Agreement and the Confidentiality Agreement.  Executive also acknowledges that the limitations of time, geography, and scope of activity agreed to above are reasonable because, among other things:  (a) the Company is engaged in a highly competitive industry; (b) Executive will have continued and unique access to the trade secrets and know-how of the Company, including without limitation the plans and strategy (and in particular the competitive strategy) of the Company; (c) Executive is receiving significant severance payments and benefits in connection with Executive’s termination of employment; (d) these non-competition and non-solicitation agreements will not impose an undue hardship on Executive, and Executive acknowledges that Executive will be able to obtain suitable and satisfactory employment in Executive’s chosen profession without violation of these covenants; and (e) these covenants provide no more protection than is reasonable and necessary to protect the trade secrets, confidential information, customer contacts and relationships, and goodwill of the Company.
		

		
			(vi)       Resignation on Termination.  On termination of Executive’s employment, Executive shall immediately (and with contemporaneous effect) resign any directorships, offices or other positions that Executive may hold in the Company or any of its affiliates, unless otherwise requested by the Board.
		

		
			(vii)     Tolling of Non-Compete Period.  The Non-Compete Period will not include any period(s) of violation of such promises in this Section 4 or the Confidentiality Agreement, it being understood that the extension of time provided in this Section 4 may not exceed two (2) years.
		

		
			 
		

		
			
		

		
			

		 

		

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			5.         Non-disparagement.  Upon termination of employment by the Company or resignation of employment by Executive for any reason, Executive shall not, directly, or through any other person or entity, make any public or private statements that are disparaging of the Company, its business or its employees, officers, directors, or stockholders; and the Company shall not, directly or through any other person or entity, make any public or private statements that are disparaging of Executive.
		

		
			6.         Agreement to Arbitrate.  Any controversy, claim or dispute arising out of or relating to this Agreement, shall be settled solely and exclusively by binding arbitration in Purchase, New York or any subsequent location where the principal offices of the Company are located.  Such arbitration shall be conducted in accordance with the then prevailing JAMS Streamlined Arbitration Rules & Procedures, with the following exceptions if in conflict: (a) one arbitrator shall be chosen by JAMS; (b) each party to the arbitration will pay its pro rata share of the expenses and fees of the arbitrator, unless otherwise required to enforce this Section 6; and (c) arbitration may proceed in the absence of any party if written notice (pursuant to the JAMS’ rules and regulations) of the proceedings has been given to such party.  Each party shall bear its own attorneys’ fees and expenses.  The parties agree to abide by all decisions and awards rendered in such proceedings.  Such decisions and awards rendered by the arbitrator shall be final and conclusive.  All such controversies, claims or disputes shall be settled in this manner in lieu of any action at law or equity; provided, however, that nothing in this Section shall be construed as precluding the bringing of an action in a court of competent jurisdiction to enforce the Confidentiality Agreement or any other non-competition, non-solicitation, non-disparagement, confidentiality, or assignment of inventions covenants or other intellectual property related covenants contained in any other agreement between Executive and the Company.
		

		
			7.         At‐Will Employment Relationship.  Executive’s employment with the Company is at-will and not for any specified period and may be terminated at any time, with or without Cause or advance notice, by either Executive or the Company.  Any change to the at-will employment relationship must be by specific, written agreement signed by Executive and an authorized representative of the Company.  Nothing in this Agreement is intended to or should be construed to contradict, modify or alter this at-will relationship.
		

		
			8.         General Provisions.
		

		
			(a)        Successors and Assigns.  The rights of the Company under this Agreement may, without the consent of Executive, be assigned by the Company to any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires all or substantially all of the assets or business of the Company or to any of its Affiliates.  The Company will require any successor (whether direct or indirect, by purchase, merger or otherwise) to all or substantially all of the business or assets of the Company to assume this Agreement.  Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement.  This Agreement shall inure to the benefit of and be enforceable by Executive’s personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
		

		
			
		

		
			

		 

		

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			(b)        Severability.  In the event any provision of this Agreement is found to be unenforceable by an arbitrator or court of competent jurisdiction, such provision shall be deemed modified to the extent necessary to allow enforceability of the provision as so limited, it being intended that the parties shall receive the benefit contemplated herein to the fullest extent permitted by law.  If a deemed modification is not satisfactory in the judgment of such arbitrator or court, the unenforceable provision shall be deemed deleted, and the validity and enforceability of the remaining provisions shall not be affected thereby.
		

		
			(c)        Interpretation; Construction.  The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement.  This Agreement has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms.  Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.  Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement.
		

		
			(d)        Governing Law and Venue.  This Agreement will be governed by and construed in accordance with the laws of the United States and the Commonwealth of Massachusetts applicable to contracts made and to be performed wholly therein, and without regard to the conflicts of laws principles that would result in the application of the laws of another jurisdiction.  Any suit brought hereon shall be brought in the state or federal courts sitting in Boston, Massachusetts, the parties hereby waiving any claim or defense that such forum is not convenient or proper.  Each party hereby agrees that any such court shall have in personam jurisdiction over it and consents to service of process in any manner authorized by Massachusetts law.
		

		
			(e)        Notices.  Any notice required or permitted by this Agreement shall be in writing and shall be delivered as follows with notice deemed given as indicated:  (i) by personal delivery when delivered personally; (ii) by overnight courier upon written verification of receipt; (iii) by telecopy or facsimile transmission upon acknowledgment of receipt of electronic transmission; or (iv) by certified or registered mail, return receipt requested, upon verification of receipt.  Notice shall be sent to Executive at the most recent address for Executive set forth in the Company’s personnel files and to the Company at its principal place of business, or such other address as either party may specify in writing.
		

		
			(f)        Survival.  Sections 2  (“Severance”),  3  (“Condition to Severance Obligations”),  4 (“Restrictive Covenants”), 5 (“Non-disparagement”), 6  (“Agreement to Arbitrate”) and 8  (“General Provisions”) of this Agreement shall survive termination of Executive’s employment with the Company.
		

		
			(g)        Entire Agreement.  This Agreement and any covenants and agreements incorporated herein by reference as set forth in Section 3 together constitute the entire agreement between the parties in respect of the subject matter contained herein and therein and supersede all prior or simultaneous representations, discussions, negotiations, and agreements, whether written or oral, provided, however, that for the avoidance of doubt, all Other Arrangements (as
		

		
			
		

		
			

		 

		

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			such Other Arrangements may be amended, modified or terminated from time to time) shall remain in effect in accordance with their terms, subject to Section 2(e) hereof.  This Agreement may be amended or modified only with the written consent of Executive and an authorized representative of the Company.  No oral waiver, amendment or modification will be effective under any circumstances whatsoever.
		

		
			(h)        Code Section 409A.
		

		
			(i)         The intent of the parties is that the payments and benefits under this Agreement comply with or be exempt from Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively, “Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith.
		

		
			(ii)       Notwithstanding anything in this Agreement to the contrary, any compensation or benefits payable under this Agreement upon Executive’s termination of employment shall be payable only upon Executive’s  “separation from service” with the Company within the meaning of Section 409A (a “Separation from Service”) and, except as provided below, any such compensation or benefits shall not be paid, or, in the case of installments, shall not commence payment, until the 60th day following Executive’s Separation from Service (the “First Payment Date”).  Any installment payments that would have been made to Executive during the 60 day period immediately following Executive’s Separation from Service but for the preceding sentence shall be paid to Executive on the First Payment Date and the remaining payments shall be made as provided in this Agreement.
		

		
			(iii)      Notwithstanding anything in this Agreement to the contrary, if Executive is deemed by the Company at the time of Executive’s Separation from Service to be a “specified employee” for purposes of Section 409A, to the extent delayed commencement of any portion of the benefits to which Executive is entitled under this Agreement is required in order to avoid a prohibited distribution under Section 409A, such portion of Executive’s benefits shall not be provided to Executive prior to the earlier of (i) the expiration of the six-month period measured from the date of Executive’s Separation from Service with the Company or (ii) the date of Executive’s death.  Upon the first business day following the expiration of the applicable Section 409A period, all payments deferred pursuant to the preceding sentence shall be paid in a lump sum to Executive (or Executive’s estate or beneficiaries), and any remaining payments due to Executive under this Agreement shall be paid as otherwise provided herein.
		

		
			(iv)       Executive’s right to receive any installment payments under this Agreement shall be treated as a right to receive a series of separate payments and, accordingly, each such installment payment shall at all times be considered a separate and distinct payment as permitted under Section 409A.  Except as otherwise permitted under Section 409A, no payment hereunder shall be accelerated or deferred unless such acceleration or deferral would not result in additional tax or interest pursuant to Section 409A.
		

		
			(i)         Consultation with Legal and Financial Advisors.  By executing this Agreement, Executive acknowledges that this Agreement confers significant legal rights, and may also involve the waiver of rights under other agreements; that the Company has encouraged
		

		
			
		

		
			

		 

		

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			Executive to consult with Executive’s personal legal and financial advisors; and that Executive has had adequate time to consult with Executive’s advisors before executing this Agreement.
		

		
			(j)         Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.
		

		
			[signature page follows]
		

		
			 
		

		
			
		

		
			

		 

		

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			THE PARTIES TO THIS AGREEMENT HAVE READ THE FOREGOING AGREEMENT AND FULLY UNDERSTAND EACH AND EVERY PROVISION CONTAINED HEREIN.  WHEREFORE, THE PARTIES HAVE EXECUTED THIS AGREEMENT ON THE DATES SHOWN BELOW.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						TELADOC, INC.

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

				
	
					
						 

					
					
						Name:  Adam C. Vandervoort

				
	
					
						 

					
					
						Title:  Chief Legal Officer

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						EXECUTIVE

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						Peter McClennen

				

		
			 
		

		 

		

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