SIXTH AMENDMENT TO AMENDED AND RESTATED LOAN AGREEMENT

SIXTH AMENDMENT

TO

AMENDED AND RESTATED LOAN AGREEMENT

This Sixth Amendment to Amended and Restated Loan Agreement (this “Amendment”), dated as of July 12, 2017, is entered into among Lithia Motors, Inc., an Oregon corporation (the “Company”), each of the Subsidiaries of the Company listed on the signature pages of this Amendment (together with the Company, each a “Borrower” and any two or more “Borrowers”), the Lenders under the Loan Agreement described below that are signatories to this Amendment, and U.S. Bank National Association, as Agent for the Lenders (in such capacity, “Agent”).

R E C I T A L S:

A.    The Company, certain of its Subsidiaries, the Lenders and Agent have entered into an Amended and Restated Loan Agreement dated as of October 1, 2014, as amended by a First Amendment to Amended and Restated Loan Agreement dated as of February 20, 2015, by a Second Amendment to Amended and Restated Loan Agreement dated as of December 18, 2015, by a Third Amendment to Amended and Restated Loan Agreement dated as of February 25, 2016, by a Fourth Amendment to Amended and Restated Loan Agreement dated as of July 27, 2016, and by a Fifth Amendment and Limited Waiver dated as of May 1, 2017 (as so amended, the “Loan Agreement”). Capitalized terms not otherwise defined herein shall have the meanings given to such terms in the Loan Agreement.

B.    The Company has requested that the Agent and the Lenders agree to the amendments to the Loan Agreement set forth herein.

C.    The Lenders that are signatories to this Amendment, constituting the Required Lenders under the Loan Agreement, have agreed to the amendments to the Loan Agreement set forth herein, as more particularly as set forth herein.

For valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Restrictive Agreements. Section 13.12 of the Loan Agreement is deleted and replaced with the following:

13.12    Restrictive Agreements. Except for Permitted Restrictions and the provisions of this Agreement and the other Loan Documents, each Borrower shall not, and the Company shall not permit any Subsidiary to, (a) enter into or permit to exist any arrangement, contract, or agreement which directly or indirectly prohibits any Loan Party from or imposes any restrictions on creating, assuming or incurring any Lien in favor of the Agent for the benefit of the Lenders upon all or any portion of its properties, revenues or assets or those of any of its Subsidiaries whether now

owned or hereafter acquired, or (b) enter into or permit to exist any agreement, contract or arrangement restricting the ability of

any Subsidiary to pay or make dividends or distributions in cash or kind to the Company or any other Loan Party, to make loans, advances or other payments of whatsoever nature to the Company or any other Loan Party, to make transfers or distributions of all or any part of its assets to the Company or any other Loan Party, or to borrow money from the Company or any other Loan Party, (c) enter into or permit to exist any agreement, contract or arrangement which directly or indirectly prohibits any Subsidiary from guarantying, or imposes restrictions on the ability of any Subsidiary to guaranty, the Obligations, or (d) enter into or permit to exist any agreement or arrangement which would be violated by the extensions of credit contemplated hereunder or the performance by any Loan Party of its obligations under the Loan Documents.

2. Condition Precedent. The effectiveness of this Amendment is subject to receipt by Agent of executed originals of this Amendment signed by Agent, each Borrower, each Guarantor, and the Required Lenders.

3. Reaffirmation; Release. By signing this Amendment or the attached Acknowledgment:

3.1 Each Loan Party affirms that the representations and warranties in each of the existing Loan Documents are true and correct in all material respects as of the date hereof (except that such representations and warranties that speak as of a specified date or period of time shall be true and correct in all material respects only as of such date or period of time), and agree that (i) except as amended previously or in connection herewith, each Loan Document is valid and enforceable in accordance with its terms (except as may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or similar laws relating to or limiting creditors’ rights generally or by equitable principles) and (ii) such Loan Party has no claims, defenses, setoffs, counterclaims or claims for recoupment against Agent, the Lenders, the other Indemnified Persons or the indebtedness and obligations represented by the Notes, Guaranties, Collateral Documents and other Loan Documents.

3.2 Each Loan Party hereby releases, acquits, and forever discharges Agent, each Lender, their respective parent corporations, affiliates, subsidiaries, successors, assigns, officers, directors, employees, agents, attorneys and advisors (collectively, “Indemnified Persons”), and each of them, of and from any and all liability, claims, demands, damages, actions, causes of action, defenses, counterclaims, setoffs, or claims for recoupment of whatsoever nature, whether known or unknown, from the beginning of time to the date of this Amendment, whether in contract or tort or otherwise, arising directly or indirectly from, or in any way related to the Loan Agreement, this Amendment, the Notes, Collateral Documents and the other Loan Documents, any other indebtedness or obligations of any Loan Party to Agent or any one or more of the Lenders or to the relationship between any Loan Party and Agent, any Lender, or the Indemnified Persons.

4. References. On and after the effective date of this Amendment, all references in the Loan Agreement and the other Loan Documents to the Loan Agreement shall be deemed to refer to the Loan Agreement as amended hereby.

5. Representations and Warranties. By signing this Amendment or the attached Acknowledgment, each Loan Party represents and warrants to Agent and the Lenders as follows:

5.1 Authorization. (a) It has all requisite power and authority to enter into this Amendment and to carry out the transactions contemplated by, and perform its obligations under, the Loan Agreement as amended by this Amendment (the “Amended Agreement”), (b) its execution, delivery and performance of this Amendment and the other Loan Documents to be executed, delivered or performed by it have been duly authorized by all necessary entity action, do not require the approval of any governmental agency or other Person, do not contravene any law, regulation, rule, order, or restriction of any Governmental Body binding on it or its articles of incorporation or other organizational documents, and do not contravene the provisions of or constitute a default under any agreement or instrument to which it is a party or by which it may be bound or affected, and (c) this Amendment has been duly executed and delivered by each Loan Party and this Amendment and the Amended Agreement are the legally valid and binding obligations of each Loan Party, enforceable against such Loan Party in accordance with their respective terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or similar laws relating to or limiting creditors’ rights generally or by equitable principles.

5.2 Absence of Default. No Default or Event of Default has occurred and is continuing or will exist after giving effect to the transactions contemplated by this Amendment.

6. Expenses. Borrowers shall pay all reasonable costs, fees and expenses (including without limitation, reasonable attorney fees of Agent’s counsel) incurred by Agent in connection with the preparation, negotiation, execution, and delivery of this Amendment and any other document required to be furnished herewith.

7. Recitals. The Recitals are hereby incorporated herein.

8. Counterparts. This Amendment may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of said counterparts taken together shall be deemed to constitute but one document.

9. Disclosure. Under Oregon law, most agreements, promises and commitments made by a lender concerning loans and other credit extensions which are not for personal, family or household purposes or secured solely by the borrower’s residence must be in writing, express consideration and be signed by the lender to be enforceable.

[Signature pages follow]

2

BORROWERS:

LITHIA MOTORS, INC.

By:

Name:

Title:

XXXXXX CHEVROLET, INC.

XXXXXX AUTOMOTIVE CORPORATION

CADILLAC OF PORTLAND XXXXX CENTER, LLC

CAMP AUTOMOTIVE, INC.

CRANBERRY AUTOMOTIVE, INC.

XXXXX MOTORS LLC

DCH (OXNARD) INC.

DCH BLOOMFIELD LLC

DCH CA, LLC

DCH CALABASAS-A, LLC

DCH CALIFORNIA MOTORS INC.

DCH DEL NORTE, INC.

DCH ESSEX INC.

DCH FREEHOLD LLC

DCH FREEHOLD-V, LLC

DCH KOREAN IMPORTS LLC

DCH MAMARONECK LLC

DCH MISSION VALLEY LLC

DCH MONMOUTH LLC

DCH MONTCLAIR LLC

DCH MOTORS LLC

DCH NANUET LLC

DCH NY MOTORS LLC

DCH OXNARD 1521 IMPORTS INC.

DCH RIVERSIDE-S, INC.

DCH SIMI VALLEY INC.

DCH TEMECULA IMPORTS LLC

DCH TEMECULA MOTORS LLC

DCH TORRANCE IMPORTS INC.

FREEHOLD NISSAN LLC

XXXXXXXX XXXXXX NISSAN, INC.

XXXXXXXX IMPORTED MOTORS, INC.

LBMP, LLC

LDLC, LLC

LFKF, LLC

SIXTH AMENDMENT

LGPAC, INC.

LITHIA ACDM, INC.

LITHIA BRYAN TEXAS, INC.

LITHIA CCTF, INC.

LITHIA CDH, INC.

LITHIA CIMR, INC.

LITHIA CJDO, INC.

LITHIA CJDSA, INC.

LITHIA CJDSF, INC.

LITHIA CM, INC.

LITHIA CO, INC.

LITHIA CSA, INC.

LITHIA DE, INC.

LITHIA DM, INC.

LITHIA DMID, INC.

LITHIA DODGE OF TRI-CITIES, INC.

LITHIA FBCS, LLC

LITHIA FLCC, LLC

LITHIA FMF, INC.

LITHIA FORD OF BOISE, INC.

LITHIA FRESNO, INC.

LITHIA HDM, INC.

LITHIA HGF, INC.

LITHIA HMID, INC.

LITHIA IMPORTS OF ANCHORAGE, INC.

LITHIA JEF, INC.

LITHIA KLAMATH, INC.

LITHIA LBGGF, INC.

LITHIA LHGF, INC.

LITHIA LSGF, INC.
LITHIA MBDM, INC.

LITHIA MEDFORD HON, INC.

LITHIA MMF, INC.

LITHIA MTLM, INC.

LITHIA NA, INC.

LITHIA NC, INC.

LITHIA ND ACQUISITION CORP. #1

LITHIA ND ACQUISITION CORP. #3

LITHIA ND ACQUISITION CORP. #4

LITHIA NDM, INC.

LITHIA NF, INC.

LITHIA NSA, INC.

LITHIA OF ABILENE, INC.

LITHIA OF ANCHORAGE, INC.

LITHIA OF BEND #1, LLC

SIXTH AMENDMENT

LITHIA OF BEND #2, LLC

LITHIA OF BENNINGTON – 1, LLC

LITHIA OF BENNINGTON – 2, LLC

LITHIA OF BENNINGTON – 3, LLC

LITHIA OF BENNINGTON – 4, LLC

LITHIA OF XXXXXXXX II, LLC

LITHIA OF XXXXXXXX, INC.

LITHIA OF CASPER, LLC

LITHIA OF CLEAR LAKE, LLC

LITHIA OF CONCORD I, INC.

LITHIA OF CONCORD II, INC.

LITHIA OF CORPUS CHRISTI, INC.

LITHIA OF DES MOINES, INC.

LITHIA OF XXXXXX, LLC

LITHIA OF EUREKA, INC.

LITHIA OF FAIRBANKS, INC.

LITHIA OF GREAT FALLS, INC.

LITHIA OF HELENA, INC.

LITHIA OF HONOLULU-A, INC.

LITHIA OF HONOLULU-BGMCC, LLC

LITHIA OF HONOLULU-V, LLC

LITHIA OF KILLEEN, LLC

LITHIA OF LODI, INC.

LITHIA OF MAUI-H, LLC

LITHIA OF MISSOULA II, LLC

LITHIA OF MISSOULA III, INC.

LITHIA OF MISSOULA, INC.

LITHIA OF POCATELLO, INC.

LITHIA OF PORTLAND I, INC.

LITHIA OF PORTLAND, LLC

LITHIA OF ROSEBURG, INC.

LITHIA OF SANTA XXXX, INC.

LITHIA OF SEATTLE, INC.

LITHIA OF SOUTH CENTRAL AK, INC.

LITHIA OF SPOKANE II, INC.

LITHIA OF SPOKANE, INC.

LITHIA OF STOCKTON, INC.

LITHIA OF STOCKTON-V, INC.

LITHIA OF TF, INC.

LITHIA OF XXXX, LLC

LITHIA OF UTICA – 1, LLC

LITHIA OF UTICA – 2, LLC

LITHIA OF UTICA – 3, LLC

LITHIA OF WALNUT CREEK, INC.

LITHIA OF WASILLA, LLC

SIXTH AMENDMENT

LITHIA OF YORKVILLE – 1, LLC

LITHIA OF YORKVILLE – 2, LLC

LITHIA OF YORKVILLE – 3, LLC

LITHIA OF YORKVILLE – 4, LLC

LITHIA OF YORKVILLE – 5, LLC

LITHIA RENO SUB-HYUN, INC.

LITHIA ROSE-FT, INC.

LITHIA SALMIR, INC.

LITHIA SEA P, INC.

LITHIA SEASIDE, INC.

LITHIA SOC, INC.

LITHIA TA, INC.

LITHIA TO, INC.

LITHIA TR, INC.

LITHIA VAUDM, INC.

LITHIA VF, INC.

LLL SALES CO LLC

LMBB, LLC

LMBP, LLC

LMOP, LLC

MILFORD DCH, INC.

NORTHLAND FORD INC.

PARAMUS WORLD MOTORS LLC

SALEM-B, LLC

SALEM-H, LLC

SALEM-V, LLC

XXXXXXXX REALTY LLC

TUSTIN MOTORS INC.

By:

Name:     Xxxxxxxxxxx X. Xxxxxxx

Title:     Executive Vice President, Chief Human Resources Officer and Secretary

SIXTH AMENDMENT

U.S. BANK NATIONAL ASSOCIATION, as

Agent, Lender, Swing Line Lender, and LC Issuer

By:

Name:

Title:

SIXTH AMENDMENT

JPMORGAN CHASE BANK, N.A., as Lender

By:

Name:

Title:

SIXTH AMENDMENT

MERCEDES-BENZ FINANCIAL SERVICES

USA LLC, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

TOYOTA MOTOR CREDIT

CORPORATION, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

BMW FINANCIAL SERVICES NA, LLC, as

Lender

By:

Name:

Title:

By:

Name:

Title:

SIXTH AMENDMENT

BANK OF AMERICA, NA, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

BANK OF THE WEST, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

KEYBANK NATIONAL

ASSOCIATION, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

NISSAN MOTOR ACCEPTANCE

CORPORATION, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

AMERICAN HONDA FINANCE

CORPORATION, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

TD BANK, N.A., as Lender

By:

Name:

Title:

SIXTH AMENDMENT

ALLY BANK, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

SANTANDER BANK, N.A., as Lender

By:

Name:

Title:

SIXTH AMENDMENT

VW CREDIT, INC., as Lender

By:

Name:

Title:

SIXTH AMENDMENT

HYUNDAI CAPITAL AMERICA, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

CAPITAL ONE, N.A., as Lender

By:

Name:

Title:

SIXTH AMENDMENT

BRANCH BANKING & TRUST COMPANY, as Lender

By:

Name:

Title:

SIXTH AMENDMENT

BMO XXXXXX BANK, N.A., as Lender

By:

Name:

Title:

SIXTH AMENDMENT

ACKNOWLEDGMENT AND CONSENT OF GUARANTORS

Each undersigned Guarantor hereby acknowledges, consents, and agrees to all terms and conditions of the foregoing Amendment.

000 XXXXXX XXXXXX, LLC

XXXXXX CHEVROLET, INC.

XXXXXX AUTO PARTS, INC.

XXXXXX AUTOMOTIVE CORPORATION

XXXXXX HOLDING CORPORATION

CADILLAC OF PORTLAND XXXXX CENTER, LLC

CAMP AUTOMOTIVE, INC.

CRANBERRY AUTOMOTIVE, INC.

DAH XXXXX XXXX CA TRADING LLC

DAH XXXXX XXXX TRADING CORPORATION

XXXXX MOTORS LLC

DCH (OXNARD) INC.

DCH AUTO GROUP (USA) INC.

DCH BLOOMFIELD LLC

DCH CA, LLC

DCH CALABASAS-A, LLC

DCH CALIFORNIA INVESTMENTS LLC

DCH CALIFORNIA MOTORS INC.

DCH DEL NORTE, INC.

DCH DMS, NJ, LLC

DCH ESSEX INC

DCH FINANCIAL NJ, LLC

DCH FREEHOLD - V, LLC

DCH FREEHOLD LLC

DCH HOLDINGS LLC

DCH INVESTMENTS, INC. (NEW JERSEY)

DCH INVESTMENTS, INC. (NEW YORK)

DCH KOREAN IMPORTS LLC

DCH MAMARONECK LLC

DCH MANAGEMENT, INC.

DCH MISSION VALLEY LLC

DCH MONMOUTH LLC

DCH MONTCLAIR LLC

DCH MOTORS LLC

DCH NANUET LLC

DCH NORTH AMERICA, INC.

DCH NY MOTORS LLC

DCH OXNARD 1521 IMPORTS INC.

DCH RIVERSIDE-S, INC.

SIXTH AMENDMENT

DCH SIMI VALLEY INC.

DCH SUPPORT SERVICES, LLC

DCH TEMECULA IMPORTS LLC

DCH TEMECULA MOTORS LLC

DCH THOUSAND OAKS-F, INC.

DCH TL HOLDINGS LLC

DCH TL NY HOLDINGS LLC

DCH TORRANCE IMPORTS INC.

FREEHOLD NISSAN LLC

FUSE AUTO SALES, LLC

XXXXXXXX XXXXXX NISSAN, INC.

XXXXXXXX IMPORTED MOTORS, INC.

LAD ADVERTISING, INC.

LBMP, LLC

LDLC, LLC

LFKF, LLC

LGPAC, INC.

LITHIA ACDM, INC.

LITHIA AIRCRAFT, INC.

LITHIA AUCTION & RECON, LLC

LITHIA AUTO SERVICES, INC.

LITHIA AUTOMOTIVE, INC.

LITHIA BA HOLDING, INC.

LITHIA BNM, INC.

LITHIA BRYAN TEXAS, INC.

LITHIA CCTF, INC.

LITHIA CDH, INC.

LITHIA CIMR, INC.

LITHIA CJDO, INC.

LITHIA CJDSA, INC.

LITHIA CJDSF, INC.

LITHIA CM, INC.

LITHIA CO, INC.

LITHIA CSA, INC.

LITHIA DE, INC.

LITHIA DM, INC.

LITHIA DMID, INC.

LITHIA DODGE OF TRI-CITIES, INC.

LITHIA FINANCIAL CORPORATION

LITHIA FLCC, LLC

LITHIA FMF, INC.

LITHIA FORD OF BOISE, INC.

LITHIA FRESNO, INC.

LITHIA HDM, INC.

LITHIA HGF, INC.

SIXTH AMENDMENT

LITHIA HMID, INC.

LITHIA HPI, INC.

LITHIA IMPORTS OF ANCHORAGE, INC.

LITHIA JEF, INC.

LITHIA KLAMATH, INC.

LITHIA LBGGF, INC.

LITHIA LHGF, INC.

LITHIA LSGF, INC.

LITHIA MBDM, INC.

LITHIA MEDFORD HON, INC.

LITHIA MMF, INC.

LITHIA MOTORS SUPPORT SERVICES, INC.

LITHIA MTLM, INC.

LITHIA NA, INC.

LITHIA NC, INC.

LITHIA ND ACQUISITION CORP. #1

LITHIA ND ACQUISITION CORP. #3

LITHIA ND ACQUISITION CORP. #4

LITHIA NDM, INC.

LITHIA NF, INC.

LITHIA NSA, INC.

LITHIA OF ABILENE, INC.

LITHIA OF ANCHORAGE, INC.

LITHIA OF BELLINGHAM, LLC

LITHIA OF BEND #1, LLC

LITHIA OF BEND #2, LLC

LITHIA OF BENNINGTON – 1, LLC

LITHIA OF BENNINGTON – 2, LLC

LITHIA OF BENNINGTON – 3, LLC

LITHIA OF BENNINGTON – 4, LLC

LITHIA OF XXXXXXXX II, LLC

LITHIA OF XXXXXXXX, INC.

LITHIA OF CASPER, LLC

LITHIA OF CLEAR LAKE, LLC

LITHIA OF CONCORD 1, INC.

LITHIA OF CONCORD II, INC.

LITHIA OF CORPUS CHRISTI, INC.

LITHIA OF DES MOINES, INC.

LITHIA OF XXXXXX, LLC

LITHIA OF EUREKA, INC.

LITHIA OF FAIRBANKS, INC.

LITHIA OF GREAT FALLS, INC.

LITHIA OF HELENA, INC.

LITHIA OF HONOLULU-A, INC.

LITHIA OF HONOLULU-BGMCC, LLC

SIXTH AMENDMENT

LITHIA OF HONOLULU–F, LLC

LITHIA OF HONOLULU-V, LLC

LITHIA OF KILLEEN, LLC

LITHIA OF LODI, INC.

LITHIA OF MAUI-H, LLC

LITHIA OF MILWAUKIE, INC.

LITHIA OF MISSOULA II, LLC

LITHIA OF MISSOULA III, INC.

LITHIA OF MISSOULA, INC.

LITHIA OF POCATELLO, INC.

LITHIA OF PORTLAND I, INC.

LITHIA OF PORTLAND, LLC

LITHIA OF ROSEBURG, INC.

LITHIA OF SANTA XXXX, INC.

LITHIA OF SEATTLE, INC.

LITHIA OF SOUTH CENTRAL AK, INC.

LITHIA OF SPOKANE II, INC.

LITHIA OF SPOKANE, INC.

LITHIA OF STOCKTON, INC.

LITHIA OF STOCKTON-V, INC.

LITHIA OF TF, INC.

LITHIA OF XXXX, LLC

LITHIA OF UTICA – 1, LLC

LITHIA OF UTICA – 2, LLC

LITHIA OF UTICA – 3, LLC

LITHIA OF WALNUT CREEK, INC.

LITHIA OF WASILLA, LLC

LITHIA OF YORKVILLE - 1, LLC

LITHIA OF YORKVILLE – 2, LLC

LITHIA OF YORKVILLE – 3, LLC

LITHIA OF YORKVILLE – 4, LLC

LITHIA OF YORKVILLE – 5, LLC

LITHIA OREGON INVESTMENTS – 1, LLC

LITHIA OREGON INVESTMENTS – 2, LLC

LITHIA REAL ESTATE, INC.

LITHIA RENO SUB-HYUN, INC.

LITHIA ROSE-FT, INC.

LITHIA SALMIR, INC.

LITHIA SEA P, INC.

LITHIA SEASIDE, INC.

LITHIA SOC, INC.

LITHIA TA, INC.

LITHIA TO, INC.

LITHIA TR, INC.

LITHIA VAUDM, INC.

SIXTH AMENDMENT

LITHIA VF, INC.

LLL SALES CO LLC

LMBB, LLC

LMBP, LLC

LMOP, LLC

LSTAR, LLC

MEDFORD INSURANCE, LLC

MILFORD DCH, INC.

NORTHLAND FORD INC.

PARAMUS WORLD MOTORS LLC

RFA HOLDINGS, LLC

SALEM-B, LLC

SALEM-H, LLC

SALEM-V, LLC

XXXXXXXX REALTY LLC

SOUTHERN CASCADES FINANCE CORPORATION

TUSTIN MOTORS, INC.

ZELIENOPLE REAL ESTATE, L.L.C.
ZELIENOPLE REAL ESTATE I, L.P.

By:

Name: Xxxxxxxxxxx X. Xxxxxxx                

Title:     Executive Vice President, Chief Human Resources Officer and Secretary

SIXTH AMENDMENT