EXHIBIT 10.34

                              AMENDED AND RESTATED
                                CREDIT AGREEMENT

                          DATED AS OF OCTOBER 30, 1996

                                      AMONG

                                 F.I.R.C., INC.

                                   AS BORROWER

                                       AND

           THE FINANCIAL INSTITUTIONS NOW OR HEREAFTER PARTIES HERETO

                                    AS BANKS

                                       AND

                           NATIONSBANK OF TEXAS, N.A.

                                    AS AGENT
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                                TABLE OF CONTENTS
                                      PAGE


                                    ARTICLE I

                        DEFINITIONS AND ACCOUNTING TERMS

        Section 1.01. CERTAIN DEFINED TERMS....................................1
        Section 1.02. COMPUTATION OF TIME PERIODS.............................16
        Section 1.03. ACCOUNTING TERMS........................................16

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

        Section 2.01. THE ADVANCES............................................16
        Section 2.02. MAKING THE ADVANCES.....................................17
        Section 2.03. FEES....................................................18
        Section 2.04. REDUCTION OF THE COMMITMENTS............................18
        Section 2.05. EXTENSION OF TERMINATION DATE...........................18
        Section 2.06. INTEREST................................................18
        Section 2.07. ADDITIONAL INTEREST ON ADVANCES BASED ON THE LIBOR RATE.19
        Section 2.08. INTEREST RATE DETERMINATION AND PROTECTION..............20
        Section 2.09. VOLUNTARY INTEREST CONVERSION OF ADVANCES...............21
        Section 2.10. FUNDING LOSSES RELATING TO FIXED RATE ADVANCES..........21

                                   ARTICLE III

                INCREASED COSTS, TAXES, PAYMENTS AND PREPAYMENTS

        Section 3.01. INCREASED COSTS; CAPITAL ADEQUACY.......................22
        Section 3.02. PAYMENTS AND COMPUTATIONS...............................23
        Section 3.03. TAXES...................................................23
        Section 3.04. SHARING OF PAYMENTS, ETC................................24
        Section 3.05. VOLUNTARY PREPAYMENTS...................................24
        Section 3.06. MANDATORY PREPAYMENTS...................................24
        Section 3.07. BANK COLLATERAL AGENT AS BORROWER'S PAYING AGENT........25
        Section 3.08. SUBSTITUTION OF BANK....................................25

                                   ARTICLE IV

                              CONDITIONS OF LENDING

        Section 4.01. CONDITIONS PRECEDENT TO INITIAL ADVANCES................25
        Section 4.02. CONDITIONS PRECEDENT TO EACH BORROWING
                     (INCLUDING THE INITIAL BORROWING)........................27

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                                    ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

        Section 5.01. EXISTENCE...............................................28
        Section 5.02. POWER AND AUTHORIZATION.................................28
        Section 5.03. NO CONFLICT OR RESULTANT LIEN...........................28
        Section 5.04. RECEIVABLES.............................................28
        Section 5.05. NO CONSENT..............................................28
        Section 5.06. BINDING OBLIGATIONS.....................................28
        Section 5.07. FINANCIAL CONDITION.....................................29
        Section 5.08. LITIGATION..............................................29
        Section 5.09. USE OF PROCEEDS; MARGIN STOCK...........................29
        Section 5.10. TAXES; GOVERNMENTAL CHARGES.............................29
        Section 5.11. FULL DISCLOSURE.........................................29
        Section 5.12. INVESTMENT COMPANY ACT..................................30
        Section 5.13. ENVIRONMENTAL MATTERS...................................30
        Section 5.14. CAPITAL STRUCTURE.......................................30
        Section 5.15. COMPLIANCE WITH LAW.....................................30
        Section 5.16. ERISA...................................................30
        Section 5.17. NO DEFAULT OR EVENT OF DEFAULT..........................30
        Section 5.18. PERMITS AND LICENSES....................................30
        Section 5.19. SURVIVAL OF REPRESENTATIONS AND WARRANTIES..............30

                                   ARTICLE VI

                      AFFIRMATIVE COVENANTS OF THE BORROWER

        Section 6.01. COMPLIANCE WITH LAWS, ETC...............................31
        Section 6.02. REPORTING AND NOTICE REQUIREMENTS.......................31
        Section 6.03. TAXES AND LIENS.........................................34
        Section 6.04. MAINTENANCE OF PROPERTY.................................34
        Section 6.05. RIGHT OF INSPECTION.....................................34
        Section 6.06. PERFORMANCE AND COMPLIANCE WITH RECEIVABLES 
                      AND CREDIT INSURANCE....................................34
        Section 6.07. FURTHER ASSURANCES......................................35

                                   ARTICLE VII

                               NEGATIVE COVENANTS

        Section 7.01. LIENS, ETC..............................................35
        Section 7.02. DEBT....................................................35
        Section 7.03. RESTRICTED PAYMENTS.....................................36
        Section 7.04. MERGERS; CONSOLIDATIONS.................................36
        Section 7.05. INVESTMENTS, LOANS, AND ADVANCES........................36
        Section 7.06. SALE OR OTHER DISPOSITION OF ASSETS.....................36

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        Section 7.07. USE OF PROCEEDS.........................................36
        Section 7.08. TRANSACTIONS WITH AFFILIATES............................36
        Section 7.09. OTHER BUSINESS..........................................37
        Section 7.10. ISSUANCE OF SHARES......................................37
        Section 7.11. ERISA...................................................37
        Section 7.12. ACQUISITIONS............................................38
        Section 7.13. CERTAIN FINANCIAL TESTS.................................38
        Section 7.14. EXTENSION OR AMENDMENT OF RECEIVABLES 
                      AND OTHER DOCUMENTS.....................................38
        Section 7.15. LETTER OF GUARANTY......................................38

                                  ARTICLE VIII

                                EVENTS OF DEFAULT

        Section 8.01. EVENTS OF DEFAULT.......................................38

                                   ARTICLE IX

                                    THE AGENT

        Section 9.01. AUTHORIZATION AND ACTION................................41
        Section 9.02. AGENT'S RELIANCE, ETC...................................42
        Section 9.03. NATIONSBANK AND AFFILIATES..............................42
        Section 9.04. BANK CREDIT DECISION....................................42
        Section 9.05. INDEMNIFICATION.........................................43
        Section 9.06. SUCCESSOR AGENT.........................................43
        Section 9.07. AGENT'S RELIANCE........................................43
        Section 9.08. DEFAULTS................................................44

                                    ARTICLE X

                                  MISCELLANEOUS

        Section 10.01.AMENDMENTS, ETC.........................................44
        Section 10.02.NOTICES, ETC............................................44
        Section 10.03.NO WAIVER; REMEDIES.....................................45
        Section 10.04.COSTS, EXPENSES AND TAXES...............................45
        Section 10.05.RIGHT OF SET-OFF........................................45
        Section 10.06.BINDING EFFECT..........................................45
        Section 10.07.ASSIGNMENTS AND PARTICIPATIONS..........................45
        Section 10.08.LIMITATION ON AGREEMENTS................................47
        Section 10.09.SEVERABILITY............................................48
        Section 10.10.GOVERNING LAW...........................................48
        Section 10.11.SUBMISSION TO JURISDICTION; WAIVERS.....................48
        Section 10.12.WAIVER OF JURY TRIAL....................................49
        Section 10.13.EXECUTION IN COUNTERPARTS...............................49


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        Section 10.14.NO INSOLVENCY PETITION AGAINST BORROWER.................49
        Section 10.15.INDEMNIFICATION.........................................49
        Section 10.16.SERVICING...............................................50
        Section 10.17.FINAL AGREEMENT.........................................50

EXHIBITS:

Exhibit A - Form of ALPI Insurance Policy

Exhibit B - Form of Compliance Certificate

Exhibit C - Form of Consent to Extension

Exhibit D - Form of GAP and VSI Insurance Policy

Exhibit E - Form of Notice of Borrowing

Exhibit F - Form of Facility Note

Exhibit G - Form of Opinion of Counsel for the Borrower

Exhibit H - Form of Bank Collateral Agent's Disbursement Statement

                                      -iv-
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                              AMENDED AND RESTATED
                                CREDIT AGREEMENT

        THIS AMENDED AND RESTATED CREDIT AGREEMENT, dated as of October 30, 1996
(as the same may be amended, modified, renewed or extended from time to time,
this "AGREEMENT") is made by and among F.I.R.C., Inc., a Delaware corporation
(the "BORROWER"), the financial institutions listed on the signature pages
hereof and any other financial institution that may hereafter become a party
hereto pursuant to the provisions hereof (each individually a "BANK" and
collectively, the "BANKS"), and NationsBank of Texas, N.A. (in its individual
capacity, "NATIONSBANK"), as agent for the Banks (in such capacity, the
"AGENT").

                                   WITNESSETH:

        WHEREAS, the Borrower, the Banks, and the Agent desire hereby to amend
and restate that certain Credit Agreement, dated as of October 16, 1992, as
amended by First Amendment to Credit Agreement and Loan Documents, dated as of
November 5, 1993, as further amended by Second Amendment to Credit Agreement and
Loan Documents, dated as of March 3, 1994, as further amended by Third Amendment
to Credit Agreement and Loan Documents dated as of March 17, 1995, and as
further amended by Fourth Amendment to Credit Agreement and Loan Documents dated
as of July 31, 1995;

        NOW, THEREFORE, for and in consideration of the premises and the mutual
covenants herein set forth and other good and valuable consideration, the
receipt and adequacy of which are hereby acknowledged, the Borrower, the Banks,
and the Agent hereby agree as follows:

                                    ARTICLE I

                               DEFINITIONS AND ACCOUNTING TERMS

        Section 1.01. CERTAIN DEFINED TERMS. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

               "ACTUAL CREDIT LOSSES" means, for any Collection Period, losses
        of principal under the Receivables after taking into account any
        Liquidation Proceeds received.

               "ADVANCE" means any advance provided for under Section 2.01
        hereof.

               "AFFILIATE" means any Person which, directly or indirectly,
        controls or is controlled by or is under common control with another
        Person. For purposes of this definition, "control" (including, with
        correlative meanings, the terms "controlled by" and "under common
        control with"), as used with respect to any Person, means the power to
        direct or cause the direction of the management and policies of such
        Person, directly or indirectly, whether through the ownership of voting
        securities or by contract or otherwise.

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               "AGREED RATE" means, for any Interest Period for each Agreed Rate
        Advance, a fixed interest rate per annum mutually agreed upon among the
        Borrower and the Banks.

               "AGREED RATE ADVANCE" means an Advance which bears interest at
        the interest rate as provided in Section 2.06(c).

               "ALPI INSURANCE" means the policy or policies of insurance
        covering each of the underlying installment sales contracts or other
        written evidence of any Obligor's obligation arising out of the purchase
        of a Financed Vehicle held by the Borrower issued by National Union Fire
        Insurance Company of Pittsburgh, PA in the form attached hereto as
        EXHIBIT A and the policy of insurance issued by Agricultural Excess and
        Surplus Insurance Co. issued October 6, 1992 or such other insurance as
        is satisfactory in form and substance to the Banks.

               "APPLICABLE LENDING OFFICE" means, with respect to each Bank,
        such Bank's Domestic Lending Office in the case of a Base Rate Advance
        or an Agreed Rate Advance or such Bank's LIBOR Lending Office in the
        case of a LIBOR Rate Advance.

               "ANNUAL PERCENTAGE RATE" or "APR" has the meaning set forth in
        the Purchase Agreement.

               "ASSIGNEE" has the meaning specified in subsection 10.07(a)
        hereof.

               "ASSIGNMENT AND ACCEPTANCE" has the meaning specified in Section
        10.07(a) hereof.

               "AVAILABLE AMOUNT" means, at any time, an amount equal to the
        excess of (a) the lesser of (i) the Commitments at such time or (ii) the
        Borrowing Base OVER (b) the aggregate principal amount of all Advances
        then outstanding.

               "BANK COLLATERAL AGENT" means Texas Commerce Bank National
        Association and any successor thereto appointed pursuant to Section 19
        of the Security Agreement.

               "BASE RATE" means, for any period, a fluctuating interest rate
        per annum (rounded upwards to the nearest 1/16 of 1%) as shall be in
        effect from time to time which rate per annum shall at all times be
        equal to the higher of:

                      (a) the Prime Rate, or

                      (b) the Federal Funds Rate plus 1/2 of 1% per annum.

               "BASE RATE ADVANCE" means an Advance which bears interest at the
        interest rate as provided in Section 2.06(a).

               "BORROWING" means a borrowing consisting of Advances of the same
        Type made on the same day by the Banks.

               "BORROWING BASE" means, at any time, an amount equal to the
        lesser of (i) the sum of (A) 100% of Eligible Receivables PLUS (B) the
        amount on deposit in the Escrow Account (after giving effect to the
        deposit of the proceeds of any Advance on the date of calculation in the
        Escrow

                                       -2-
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        Account) and (ii) the policy life aggregate limit of liability of the
        ALPI Insurance as it may adjust from time to time.

               "BUSINESS DAY" means a day of the year on which banks are not
        required or authorized to close in Dallas, Texas and, if the applicable
        Business Day relates to any LIBOR Rate Advances, on which dealings are
        carried on in the London interbank market.

               "CAPITAL LEASE" means a lease which should, in accordance with
        GAAP, be recorded as a capital lease on the balance sheet of the lessee.

               "CLOSING DATE" means the date the Agreement becomes effective in
        accordance with Article IV.

               "CODE" means the Internal Revenue Code of 1986, as amended from
        time to time and any successor statute.

               "COLLATERAL" has the meaning set forth in the Security Agreement.

               "COLLATERAL ACCOUNT" means that certain trust account established
        pursuant to Section 2 of the Security Agreement.

               "COLLECTION PERIOD" means, with respect to any Distribution Date,
        the calendar month immediately preceding such Distribution Date.

               "COMMITMENT" means, as to any Bank, each Bank's Loan Percentage
        of $55,000,000, as such amount may be reduced from time to time pursuant
        to the terms and provisions hereof, and "COMMITMENTS" means,
        collectively, all Banks' Commitments.

               "COMPLIANCE CERTIFICATE" means a certificate, duly executed by a
        Responsible Officer, appropriately completed and in substantially the
        form of EXHIBIT B hereto.

               "CONSENT TO EXTENSION" means a consent to the extension of the
        Termination Date executed by each Bank in the form of EXHIBIT C hereto.

               "CREDIT GUIDELINES" has the meaning set forth in the Purchase
        Agreement.

               "CREDIT INSURANCE" means the ALPI Insurance, GAP Insurance and
        VSI Insurance covering the Receivables issued in the name of the
        Borrower with the Agent named as an additional insured for the ratable
        benefit of the Banks.

               "CREDIT LOSS PERCENTAGE" means, as of any Determination Date, a
        fraction (expressed as a percentage) the numerator of which shall be a
        number equal to Actual Credit Losses for the four (4) immediately
        preceding Collection Periods TIMES three and the denominator of which
        shall be the average of the Receivables Portfolio Balance for the four
        (4) immediately preceding Collection Periods.

               "DEBT" means (without duplication), for any Person, (a)
        indebtedness of such Person for borrowed money or arising out of any
        extension of credit to or for the account of such Person

                                       -3-
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        (including, without limitation, extensions of credit in the form of
        reimbursement or payment obligations of such Person relating to letters
        of credit issued for the account of such Person) or for the deferred
        purchase price of property or services; (b) indebtedness of the kind
        described in clause (a) of this definition which is secured by (or for
        which the holder of such Debt has any existing right, contingent or
        otherwise, to be secured by) any Lien upon or in Property (including,
        without limitation, accounts and contract rights) owned by such Person,
        whether or not such Person has assumed or become liable for the payment
        of such indebtedness or obligations; (c) all obligations as lessee under
        any Capital Lease, (d) all contingent liabilities and obligations under
        direct or indirect guarantees in respect of, and obligations (contingent
        or otherwise) to purchase or otherwise acquire, or otherwise to assure a
        creditor against loss in respect of, indebtedness or obligations of
        others of the kinds referred to in clauses (a) through (c) above,
        including, without limitation, (i) any endorsement not for collection in
        the ordinary course of business or discount with recourse or undertaking
        substantially equivalent to or having economic effect similar to a
        guaranty in respect of any such Debt; (ii) any agreement (A) to
        purchase, or to advance or supply funds for the payment or purchase of,
        any such Debt, (B) to purchase, sell, or lease property, products,
        materials, supplies, transportation, or services, in order to enable
        such Person to pay any such Debt or to assure the owner thereof against
        loss regardless of the delivery or nondelivery of the property,
        products, materials, supplies, transportation, or services, or (C) to
        make any loan, advance, or capital contribution to, or other investment
        in, or to otherwise provide funds to or for, such other Person in order
        to enable such Person to satisfy any obligation (including any liability
        for a dividend, stock liquidation payment or similar expense) or to
        assure a minimum equity, working capital, or other balance sheet
        condition in respect of any such obligation; and (iii) obligations under
        surety, appeal, or custom bonds; (e) any obligation of a Person under or
        in connection with a sale-leaseback or similar arrangement, including,
        without limitation, any arrangement with any other party providing for
        the leasing by such Person (as lessee) from such other party of any
        Property which has been, or is to be, sold or transferred by such Person
        to such other party or to any other Person to whom funds have been, or
        are to be, advanced on the security of such Property or rental
        obligations of such Person and (f) any and all obligations of such
        Person under any interest rate swap, interest rate cap or other exchange
        or rate protection agreement now existing or hereafter entered into by
        such Person and NationsBank or any Affiliate of NationsBank.

               "DEFAULT" means any event which, with the lapse of time or giving
        of notice, or both, would constitute an Event of Default.

               "DELINQUENT RECEIVABLES" means, at any time, those Receivables on
        which the stated monthly payment has not been made in full for at least
        thirty (30) days as reflected on the Servicer's reports delivered
        pursuant to Section 6.02(g) hereof.

               "DETERMINATION DATE" means the last day of each Collection Period

               "DISTRIBUTION DATE" means the date on which Distributions are to
        be made, and which shall be the 20th day of each month, or if such day
        is not a Business Day, the next following Business Day, commencing with
        November 20, 1996.

               "DISTRIBUTIONS" means those amounts distributed by the Bank
        Collateral Agent with respect to the Receivables pursuant to Section 5
        of the Security Agreement.

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               "DOMESTIC LENDING OFFICE" means, with respect to any Bank, the
        office of such Bank specified as its "Domestic Lending Office" opposite
        its name on the signature pages hereto, or such other office of such
        Bank as such Bank may from time to time specify to the Borrower and the
        Agent.

               "EARNINGS BEFORE INTEREST, FEES AND DISTRIBUTIONS" means, for any
        period, Net Income PLUS (to the extent deducted in arriving at Net
        Income) any distributions or payments made to the Borrower's
        shareholders PLUS Loan Interest Expense PLUS Fee Expense.

               "ELIGIBLE RECEIVABLES" means, as at any date of determination
        thereof, the Principal Balance portion of each Receivable which, as of
        such determination date, complies with the following requirements:

                      (a) it and the sale of the Financed Vehicle complies with
               all requirements of applicable federal, state, and local laws,
               and regulations thereunder, including, without limitation, usury
               laws, the Federal Truth-in-Lending Act, the Equal Credit
               Opportunity Act, the Fair Credit Reporting Act, the Fair Debt
               Collection Practices Act, the Federal Trade Commission Act, the
               Magnuson-Moss Warranty Act, the Federal Reserve Board's
               Regulations B and Z, the Texas Consumer Credit Code and other
               state adaptations of the National Consumer Act and of the Uniform
               Consumer Credit Code, and other consumer credit laws and equal
               credit opportunity and disclosure laws;

                      (b) it represents the genuine, legal, valid, and binding
               payment obligation in writing of the Obligor, enforceable by the
               holder thereof in accordance with its terms;

                      (c) it is not due from the United States of America or any
               state or from any agency, department or instrumentality of the
               United States of America or any state;

                      (d) it is secured by a validly perfected first priority
               security interest in the Financed Vehicle in favor of First
               Investors as secured party;

                      (e) it has not been amended, nor have any of its
               provisions been waived, other than as allowed under Section 4.02
               of the Servicing Agreement;

                      (f) no liens or claims shall have been filed for work,
               labor, or materials relating to a Financed Vehicle that shall be
               liens prior to, or equal or coordinate with, the security
               interest in the Financed Vehicle granted by it;

                      (g) it is not currently the subject of any sale, transfer,
               assignment, or pledge by First Investors or the Borrower to any
               Person (including Enterprise) other than the Bank Collateral
               Agent;

                      (h) it has not been originated in, nor is it subject to
               the laws of, any jurisdiction under which the sale, transfer, and
               assignment of such Receivable under the Purchase Agreement or the
               Security Agreement would be unlawful, void or voidable;

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                      (i) there is only one executed original of it, which
               throughout the term of this Agreement is in the possession of the
               Servicer as agent for the Borrower and custodian for the Bank
               Collateral Agent, the Agent and the Banks;

                      (j) it has been originated in the United States of
               America, has been fully and properly executed by the parties
               thereto, is payable in United States dollars, contains customary
               and enforceable provisions such that the rights and remedies of
               the holder thereof shall be adequate for realization against the
               collateral of the benefits of the security and constitutes an
               "Eligible Loan" as defined in the ALPI Insurance;

                      (k) it has not been satisfied, subordinated, or rescinded,
               and the Financed Vehicle relating thereto has not been released
               in whole or in part;

                      (l) no right of rescission, cancellation, setoff, claim,
               counterclaim or defense has been asserted or threatened with
               respect to it;

                      (m) prior to its sale under the Purchase Agreement, First
               Investors, in accordance with its customary procedures, shall
               have determined that the Obligor obtained or agreed to obtain
               physical damage insurance covering the Financed Vehicle;

                      (n) it has an original maturity of not greater than sixty
               (60) months;

                      (o) the Agent has not received a Notice of Noninsurance
               with respect to it and the Confirmation of Insurance with respect
               to such Receivable has not been voided pursuant to Paragraph 18
               of the ALPI Insurance;

                      (p) it is not subject to (i) any loss which is not covered
               by Credit Insurance or (ii) any loss which would be covered by
               Credit Insurance but for which an insurance claim has been
               outstanding for more than 30 days past the maximum contractual
               payment date as specified in the applicable Credit Insurance,
               PROVIDED that, if such claim is subsequently paid, the Receivable
               shall again constitute an Eligible Receivable;

                      (q) it has been assigned to the Borrower, is subject to
               the Security Agreement and the first priority security interest
               of the Bank Collateral Agent in the Receivable has been properly
               perfected;

                      (r) (i) it would constitute an "Eligible Receivable" under
               the Enterprise Agreement, (excluding, however, clauses (c), (e),
               (g), (h), (x) and (aa) of the definition of Eligible Receivable
               as set forth in such agreement) and (ii) conforms to the
               representations made by FIARC in Section 3.1 of Article III of
               the Enterprise Agreement.

                      (s) the Principal Balance of such Receivable shall not
               exceed the lesser of (x) 120% of the Manufacturer's Suggested
               Retail Price with respect to the subject unused Financed Vehicles
               or (y) 120% of the retail value of such Financed Vehicles as
               published in the National Automobile Dealers Association Used Car
               Guide or the Kelly Blue Book with respect to the subject used or
               pre-owned Financed Vehicles;

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                      (t) it shall not have been the subject of more than two
               extensions of monthly payments with respect thereto during any
               12-month period nor shall the total extensions of monthly
               payments granted over the term of such Receivable exceed a number
               which is equivalent to one such extension for every 12 months in
               the stated term of such Receivable;

                      (u) it shall not have been the subject of any extension of
               a monthly payment unless the Obligor thereon has made the first
               six consecutive scheduled payments with respect to such
               Receivable;

                      (v) at the time of origination, the Obligor on which has
               provided, as its most recent billing address, an address located
               in the United States;

                      (w) which has been created substantially in accordance
               with, or under standards no less stringent than, the Credit
               Guidelines;

                      (x) as to which at the time such Receivable first became
               part of the Collateral, to the best of the Borrower's knowledge,
               a bona fide down payment has been made;

                      (y) which provides for level monthly payments (PROVIDED
               that the payment in the first and last month of the Receivable
               may be minimally different from the level payment) that fully
               amortize the amount financed by maturity and yield interest at
               the stated Annual Percentage Rate;

                      (z) which provides for, in the event that such Receivable
               is prepaid by the Obligor, a prepayment that fully pays the
               principal balance of such Receivable and any interest accrued
               through the date of prepayment;

                      (aa) the Obligor of which has not previously defaulted on
               an automobile installment sales contract purchased by First
               Investors at the time such Receivable becomes a part of the
               Collateral;

                      (ab) which was originated by an Originator approved by
               First Investors and which Originator is subject to an Originator
               Agreement with First Investors providing for bona fide sales in
               the ordinary course of such Originator's business and which if
               acquired by First Investors pursuant to a "bulk purchase" from
               another Originator has been approved by the Bank Collateral
               Agent, acting upon written instructions of the Agent;

                      (ad) which has a clear right of repossession on the
               Financed Vehicle securing such Receivable;

                      (af)   which has an APR of at least 13.0%;

                      (ag) the Obligor of which is required to make payments to
               a lockbox under the control of the Servicer;

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                      (ah) as to which neither First Investors, FIARC nor the
               Borrower has done anything at the time such Receivable first
               became part of the Collateral, to impair the rights of the Bank
               Collateral Agent therein; and

                      (ai) the Obligor of which does not have any other
               automotive receivable owing to First Investors which is more than
               60 days contractually delinquent from the due date or defaulted
               at the time such Receivable becomes a part of the Collateral.

               "ENTERPRISE" means Enterprise Funding Corporation, a Delaware
        corporation.

               "ENTERPRISE AGREEMENT" means that certain Security Agreement
        dated as of October 22, 1996, by and among FIARC, Enterprise, Texas
        Commerce Bank National Association, MBIA Insurance Corporation,
        NationsBank, N.A. and First Investors, and any amendments,
        modifications, renewals or extensions thereof approved in accordance
        with Section 7.14 hereof.

               "ENVIRONMENTAL PROTECTION STATUTE" means (a) the Comprehensive
        Environmental Response, Compensation and Liability Act of 1980 (as
        amended by the Superfund Amendments and Reauthorization Act of 1986, 42
        U.S.C.A. ss. 9601 ET SEQ.), as amended from time to time, and any and
        all rules and regulations issued or promulgated thereunder ("CERCLA");
        (b) the Resource Conservation and Recovery Act (as amended by the
        Hazardous and Solid Waste Amendment of 1984, 42 U.S.C.A. ss. 6901 ET
        SEQ.), as amended from time to time, and any and all rules and
        regulations promulgated thereunder ("RCRA"); (c) the Clean Air Act, 42
        U.S.C.A. ss. 7401 ET SEQ., as amended from time to time, and any and all
        rules and regulations promulgated thereunder; (d) the Clean Water Act of
        1977, 33 U.S.C.A. ss. 1251 ET SEQ., as amended from time to time, and
        any and all rules and regulations promulgated thereunder; (e) the Toxic
        Substances Control Act, 15 U.S.C.A. ss. 2601 ET SEQ., as amended from
        time to time, and any and all rules and regulations promulgated
        thereunder; or (f) any other federal or state law, statute, rule, or
        regulation enacted in connection with or relating to the protection or
        regulation of the environment (including, without limitation, those
        laws, statutes, rules, and regulations regulating the disposal, removal,
        production, storing, refining, handling, transferring, processing, or
        transporting of Hazardous Materials) and any rules and regulations
        issued or promulgated in connection with any of the foregoing by any
        Governmental Authority, and "ENVIRONMENTAL PROTECTION STATUTES"means,
        collectively, each of the foregoing.

               "ERISA" means the Employee Retirement Income Security Act of
        1974, as amended from time to time, and the regulations promulgated and
        rulings issued thereunder.

               "ERISA AFFILIATE" means any subsidiary or trade or business
        (whether or not incorporated) which is a member of a group of which the
        Borrower is a member and which is under common control within the
        meaning of Section 414 of the Code and the rules and regulations
        thereunder.

               "ERISA EVENT" means any of the following events: (a) a
        "Reportable Event" described in Section 4043 of ERISA and the
        regulations issued thereunder (other than a "Reportable Event" not
        subject to the provision for the 30-day notice to the Pension Benefit
        Guaranty Corporation, under such regulations) or an event described in
        Section 4068(f) of ERISA which may result in a material liability of the
        Borrower or any ERISA Affiliate, (b) the withdrawal of the Borrower or
        any ERISA Affiliate from a Plan during a plan year in which it was a
        "substantial employer"

                                       -8-
<PAGE>
        as defined in Section 4001(a)(2) of ERISA or the incurrence of liability
        by the Borrower or any ERISA Affiliate under Section 4064 of ERISA, (c)
        the distribution of a notice of intent to terminate a Plan pursuant to
        Section 4041(a)(2) of ERISA or the treatment of a Plan amendment as a
        termination under Section 4041 of ERISA, (d) the institution of
        proceedings to terminate a Plan by the Pension Benefit Guaranty
        Corporation, or (e) any other event or condition which might constitute
        grounds under ERISA or the Code for the termination of, or the
        appointment of a trustee to administer, any Plan or for the imposition
        of a lien on the assets of the Borrower or any ERISA Affiliate in
        respect of any Plan or Multiemployer Plan which is not corrected within
        30 days.

               "ESCROW ACCOUNT" means that certain trust account established
        pursuant to Article I of the Escrow Agreement.

               "ESCROW AGENT" means NationsBank of Texas, N.A. (and any
        successor thereto) as escrow agent under the Escrow Agreement.

               "ESCROW AGREEMENT" means the Escrow Agreement dated as of
        September 1, 1993 between the Borrower, the Agent, and the Escrow Agent,
        and any amendments, modifications, renewals or extensions thereof.

               "EUROCURRENCY LIABILITIES" has the meaning assigned to that term
        in Regulation D of the Board of Governors of the Federal Reserve System,
        as in effect from time to time.

               "EVENTS OF DEFAULT" has the meaning specified in Section 8.01.

               "EXTENSION DATE" means, at any time, that date which is one
        hundred and eighty (180) days prior to the then-current Termination
        Date.

               "FACILITY" means the revolving credit facility created hereunder,
        and the terms and conditions thereof.

               "FACILITY NOTE" has the meaning specified in Section 2.02(d)
        hereof and includes any amendments, modifications, renewals or
        extensions thereof.

               "FEDERAL FUNDS RATE" means, for any period, a fluctuating
        interest rate per annum equal for each day during such period to the
        weighted average of the rates on overnight federal funds transactions
        with members of the Federal Reserve System arranged by federal funds
        brokers, as published for such day (or, if such day is not a Business
        Day, for the next preceding Business Day) by the Federal Reserve Bank of
        New York, or, if such rate is not so published for any day which is a
        Business Day, the average of the quotations for such day on such
        transactions received by the Agent from three federal funds brokers of
        recognized standing selected by it.

               "FEE EXPENSE" means, for any period, the aggregate amount paid or
        accrued by the Borrower in respect of the fee due under Section 2.03(a)
        hereof.

               "FIARC" means First Investors Auto Receivables Corporation, a
        Delaware corporation.


                                       -9-
<PAGE>
               "FINANCED VEHICLE" means an automobile or light-duty truck,
        together with all accessions thereto, securing an Obligor's indebtedness
        under the respective Receivable.

               "FIRST INVESTORS" means First Investors Financial Services, Inc.,
        a Texas corporation.

               "FIS GROUP" means First Investors Financial Services Group, Inc.,
        a Texas corporation.

               "FIXED RATE" means the LIBOR Rate or the Agreed Rate.

               "FIXED RATE ADVANCE" means a LIBOR Rate Advance or an Agreed Rate
        Advance.

               "FUTURE PLAN" has the meaning specified in Section 6.02(h)
        hereof.

               "GAAP" means generally accepted accounting principles set forth
        in the opinions and pronouncements of the Accounting Principles Board
        and the American Institute of Certified Public Accountants, and
        statements and pronouncements of the Financial Accounting Standards
        Board.

               "GAP INSURANCE" means the policy or policies of insurance issued
        by Agricultural Excess and Surplus Insurance Company in the form
        attached hereto as EXHIBIT D or such other insurance as satisfactory in
        form and substance to the Banks.

               "GOVERNMENTAL AUTHORITY" means any (domestic or foreign) federal,
        state, county, municipal, parish, provincial, or other government, or
        any department, commission, board, court, agency (including, without
        limitation, the Environmental Protection Agency), or any other
        instrumentality of any of them or any other political subdivision
        thereof, and any entity exercising executive, legislative, judicial,
        regulatory, or administrative functions of, or pertaining to,
        government, including, without limitation, any arbitration panel, any
        court, or any commission.

               "GOVERNMENTAL REQUIREMENT" means any order, permit, law, statute
        (including, without limitation, any Environmental Protection Statute),
        code, ordinance, rule, regulation, certificate, or other direction or
        requirement of any Governmental Authority.

               "HAZARDOUS MATERIALS" means (a) any "hazardous waste" as defined
        by RCRA; (b) any "hazardous substance" as defined by CERCLA; (c)
        asbestos; (d) polychlorinated biphenyls; (e) any substance the presence
        of which on any of the Borrower's Properties is prohibited by any
        Governmental Authority; (f) petroleum, including crude oil and any
        fraction thereof, natural gas liquids, liquified natural gas, and
        synthetic gas useable for fuel (or mixtures of natural gas and such
        synthetic gas); (g) drilling fluids, produced waters and other wastes
        associated with the exploration, development, or production of crude
        oil, natural gas, or geothermal energy; and (h) any other substance
        which, pursuant to any Governmental Requirement, requires special
        handling in its collection, storage, treatment, or disposal.

               "HIGHEST LAWFUL RATE" means, with respect to each Bank, the
        maximum nonusurious interest rate, if any, that at any time or from time
        to time may be contracted for, taken, reserved, charged, or received
        with respect to any Note or on other amounts, if any, due to such Bank
        pursuant to this Agreement or any other Loan Document under laws
        applicable to such Bank which are presently in effect or, to the extent
        allowed by law, under such applicable laws which


                                      -10-
<PAGE>
        may hereafter be in effect and which allow a higher maximum nonusurious
        interest rate than applicable laws now allow.

               "INTEREST PERIOD" means, for each LIBOR Rate Advance or Agreed
        Rate Advance comprising part of the same Borrowing, the period
        commencing on the date of such Advance or the date of the conversion of
        any Advance into such an Advance and ending on the last day of the
        period selected by the Borrower pursuant to the provisions below and,
        thereafter, each subsequent period commencing on the last day of the
        immediately preceding Interest Period and ending on the last day of the
        period selected by the Borrower pursuant to the provisions below. The
        duration of each such Interest Period shall be (a) in the case of a
        LIBOR Rate Advance, one, two, or three months, and (b) in the case of an
        Agreed Rate Advance, 1 to (and including) 30 days, as the Borrower may,
        upon notice received by the Agent, select in accordance with Section
        2.02 or 2.09; PROVIDED, HOWEVER, that:

                      (i) the duration of any Interest Period which commences
               before the Termination Date and otherwise ends after such date
               shall end on the Termination Date; and

                      (ii) whenever the last day of any Interest Period would
               otherwise occur on a day other than a Business Day, the last day
               of such Interest Period shall be extended to occur on the next
               succeeding Business Day, PROVIDED that, in the case of a LIBOR
               Rate Advance or an Agreed Rate Advance based on the LIBOR Rate,
               if such extension would cause the last day of such Interest
               Period to occur in the next following calendar month, the last
               day of such Interest Period shall occur on the next preceding
               Business Day.

               "INVESTMENT" of any Person means any investment so classified
        under GAAP, and, whether or not so classified, includes (a) any direct
        or indirect loan or advance made by it to any other Person, whether by
        means of stock purchase, loan, advance or otherwise; (b) any capital
        contribution to any other Person; and (c) any ownership or similar
        interest in any other Person.

               "LIBOR LENDING OFFICE" means, with respect to any Bank, the
        office of such Bank specified as its "LIBOR Lending Office" opposite its
        name on the signature pages hereto (or, if no such office is specified,
        its Domestic Lending Office), or such other office of such Bank as such
        Bank may from time to time specify to the Borrower and the Agent.

               "LIBOR RATE" means, for any Interest Period for each LIBOR Rate
        Advance, an interest rate per annum equal to the average (rounded upward
        to the nearest whole multiple of 1/16 of 1% per annum) of the rate per
        annum at which deposits in U.S. dollars are offered to the Agent, or at
        the Agent's option, an Affiliate of the Agent by prime banks in the
        London interbank market at 11:00 A M. (London time) three Business Days
        before the first day of such Interest Period in an amount substantially
        equal to such LIBOR Rate Advance and for a period equal to such Interest
        Period.

               "LIBOR RATE ADVANCE" means an Advance which bears interest at the
        interest rate as provided in Section 2.06(b).

               "LIBOR RATE MARGIN" means l/2 of 1% per annum.

                                      -11-
<PAGE>
               "LIBOR RATE RESERVE PERCENTAGE" of any Bank for any Interest
        Period for any LIBOR Rate Advance means the reserve percentage, if any,
        actually incurred during such Interest Period (or if more than one such
        percentage shall be incurred, the daily average of such percentages for
        those days in such Interest Period during which any such percentage
        shall be incurred) under regulations issued from time to time by the
        Board of Governors of the Federal Reserve System (or any successor) for
        determining the maximum reserve requirement (including, without
        limitation, any emergency, supplemental or other marginal reserve
        requirement) for such Bank with respect to liabilities or assets
        consisting of or including eurocurrency liabilities having a term equal
        to such Interest Period.

               "LIEN" means any claim, mortgage, deed of trust, pledge, security
        interest, encumbrance, lien, or charge of any kind (including, without
        limitation, any agreement to give any of the foregoing, any conditional
        sale or other title retention agreement, or any lease in the nature
        thereof), or the interest of the lessor under any Capital Lease.

               "LIQUIDATED RECEIVABLE" means any Receivable liquidated by the
        Servicer through sale of the Financed Vehicle or otherwise.

               "LIQUIDATION PROCEEDS" means the monies collected from whatever
        source, during the respective Collection Period, on a Liquidated
        Receivable (including, without limitation, all proceeds from any
        insurance held by the Obligor with respect thereto but excluding any
        proceeds from the ALPI Insurance, the VSI Insurance and the GAP
        Insurance).

               "LOAN DOCUMENTS" means this Agreement, the Notes, the Security
        Agreement, the Pledge Agreement, the Escrow Agreement and any document
        or instrument executed in connection with the foregoing.

               "LOAN INTEREST EXPENSE" means, for any period, the aggregate
        amount of interest paid or accrued during such period on the Advances
        (net of any costs or amounts received by the Borrower under any interest
        rate protection agreements with respect thereto in accordance with
        GAAP).

               "LOAN PERCENTAGE" means as to any Bank a fraction (expressed as a
        percentage) the numerator of which shall be the aggregate original
        principal amount of such Bank's Notes and the denominator of which shall
        be the aggregate amount of all the Commitments.

               "MAJORITY BANKS" means (a) at any time during the term of this
        Agreement when NationsBank is the only Bank or when there is only one
        Bank in addition to NationsBank, all of such Banks and (b) at any time
        during the term of this Agreement when there are two or more Banks in
        addition to NationsBank, Banks holding at least 66-2/3% of the aggregate
        unpaid principal amount of the Notes held by Banks, or, if no such
        principal amount is then outstanding, Banks having at least 66-2/3% of
        the Commitments.

               "MARGIN STOCK" shall have the meaning assigned to such term in
        Regulation G, T, U and X.

               "MATERIAL ADVERSE EFFECT" means any material adverse effect on
        (a) the financial condition, business, properties or operations of the
        Borrower or (b) the ability of the Borrower


                                      -12-
<PAGE>
        to perform its respective obligations under this Agreement, any Note or
        any other Loan Document to which it is a party, or under the Purchase
        Agreement or the Servicing Agreement, on a timely basis.

               "MULTIEMPLOYER PLAN" means a "multiemployer plan" as defined in
        Section 4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate
        is making or accruing or has made or accrued an obligation to make
        contributions.

               "MULTIPLE EMPLOYER PLAN" means a single employer plan, as defined
        in Section 4001(a)(15) of ERISA, which (i) is maintained for employees
        of the Borrower or an ERISA Affiliate and at least one entity other than
        the Borrower or an ERISA Affiliate or (ii) was so maintained and in
        respect of which the Borrower or an ERISA Affiliate could have liability
        under Section 4064 or 4069 of ERISA in the event such plan has been or
        were to be terminated.

               "NET INCOME" means, for any period, the net earnings (or loss)
        after taxes determined on a cash basis.

               "NOTE" or "NOTES" means the Facility Notes.

               "NOTICE OF BORROWING" has the meaning specified in Section
        2.02(a).

               "NOTICE OF INTEREST CONVERSION" has the meaning specified in
        Section 2.09.

               "NOTICE OF NONINSURANCE" means the notice required to be sent to
        the Borrower and the Bank Collateral Agent from the Servicer pursuant to
        Section 4.04 of the Servicing Agreement, which notice identifies any
        Receivable for which the Servicer has not received a certificate
        verifying insurance from each of the providers of the Credit Insurance
        on or before forty-five (45) days after the date that the Servicer
        enters the Receivable into its tracking system.

               "OBLIGOR" means the purchaser or co-purchasers of a Financed
        Vehicle or any other Person who owes payments under the Receivables.

               "ORIGINATOR" shall mean a bank, finance company, car rental
        company or factory authorized dealer or its affiliates which has entered
        into an Originator Agreement with First Investors.

               "ORIGINATOR AGREEMENT" shall mean the agreement between First
        Investors and an Originator relating to the purchase of a Receivable.

               "OTHER TAXES" has the meaning specified in subsection 3.03(b)
        hereof

               "PBGC PLAN" means any plan subject to Title IV of ERISA or
        Section 412 of the Code.

               "PERMITTED DEBT" has the meaning specified in Section 7.02.

               "PERMITTED LIENS" means non-consensual Liens imposed by operation
        of law including, without limitation, landlord Liens for rent not yet
        due and payable, and Liens for materialmen, mechanics, warehousemen,
        carriers, employees, workmen, repairmen, current wages, or accounts


                                      -13-
<PAGE>
        payable not yet delinquent and arising in the ordinary course of
        business; PROVIDED, HOWEVER, that any right to seizure, levy,
        attachment, sequestration, foreclosure, or garnishment with respect to
        Property of the Borrower by reason of such Lien has not matured, or has
        been, and continues to be, effectively enjoined or stayed.

               "PERSON" means an individual, partnership, estate, corporation
        (including a business trust), association, joint stock company, trust,
        unincorporated association, joint venture or other entity, or a
        government or any political subdivision or agency thereof.

               "PLAN" means any employee benefit plan within the meaning of
        Section 3(3) of ERISA, other than a Multiemployer Plan, maintained by
        the Borrower or any ERISA Affiliate.

               "PLEDGE AGREEMENT" means the Pledge Agreement dated as of October
        16, 1992 between First Investors and the Agent, and any amendments,
        modifications, renewals or extensions thereof.

               "PRIME RATE" means the rate of interest most recently announced
        publicly by NationsBank of Texas, N.A. in Dallas, Texas, from time to
        time, as its prime rate, which rate shall fluctuate, with each such
        change to be effective as of the date of such change in such rate;
        PROVIDED that the prime rate is a reference rate and does not
        necessarily represent the lowest rate charged to any customer.

               "PRINCIPAL BALANCE" means, at any time and with respect to a
        Receivable, the outstanding principal balance of the Receivable as shown
        on the Servicer's reports delivered pursuant to Section 6.02(g) hereof
        and based on the recalculation of interest by the Servicer under the
        simple interest method pursuant to Section 4.09 of the Servicing
        Agreement.

               "PROPERTY" means any interest or right in any kind of property or
        asset, whether real, personal, or mixed, owned or leased, tangible or
        intangible, and whether now held or hereafter acquired.

               "PURCHASE AGREEMENT" means the Amended and Restated Purchase
        Agreement dated as of October 30, 1996 between the Borrower and First
        Investors, as the same may be amended, restated, modified, renewed or
        extended from time to time (subject to Section 7.14 hereof).

               "PURCHASE AMOUNT" means, at any time, the Principal Balance at
        which the Receivable is carried in the Borrowing Base plus any earned
        interest thereon. In the event a Receivable is repurchased, the Purchase
        Amount shall include any out-of-pocket expenses which are reimbursable
        under the Servicing Agreement.

               "PURCHASED RECEIVABLE" has the meaning set forth in the Security
        Agreement.

               "RECEIVABLE PORTFOLIO BALANCE" means, for any Collection Period,
        the aggregate Principal Balance of the Receivables on the Determination
        Date at the end of such Collection Period.

               "RECEIVABLES" has the meaning set forth in the Purchase Agreement

               "RECEIVABLES DOCUMENTS" means the Purchase Agreement and the
        Servicing Agreement.

                                      -14-
<PAGE>
               "REGISTER" has the meaning specified in subsection 10.07(c)
        hereof.

               "REGULATION G", "REGULATION T", "REGULATION U", "REGULATION X" or
        "REGULATION G, T, U OR X" means Regulation G, T, U or X, as the case may
        be, of the Board of Governors of the Federal Reserve System, or any
        successor or other regulation hereafter promulgated by said Board to
        replace the prior Regulation G, T, U or X and having substantially the
        same function.

               "RESPONSIBLE OFFICER" means and includes the individual who is
        the president of both the Borrower and First Investors and the
        individual who is the chief financial officer of the Borrower.

               "SECURITY AGREEMENT" means the Amended and Restated Collateral
        Security Agreement dated as of October 30, 1996, among the Borrower, the
        Agent, the Banks, and the Bank Collateral Agent, as the same may be
        amended, restated, modified, renewed or extended from time to time.

               "SERVICER" means General Electric Capital Corporation and each
        successor thereto pursuant to Section 8.03 of the Servicing Agreement.

               "SERVICING AGREEMENT" means the Amended and Restated Servicing
        Agreement, dated as of October 30, 1996, between the Borrower and the
        Servicer, as the same may be amended, restated, modified, renewed or
        extended from time to time (subject to Section 7.14 hereof).

               "SPECIFIED COLLATERAL ACCOUNT BALANCE" shall have the meaning set
        forth in Section 1 of the Security Agreement.

               "SUBSIDIARY" means any corporation of which any Person, either
        directly or indirectly, owns at the time more than 50% of the
        outstanding capital stock having ordinary voting power to elect a
        majority of the Board of Directors of such corporation (whether or not
        at the time stock of any other class or classes of such corporation
        shall have, or might have, voting power by reason of the happening of
        any contingency), and shall include any such corporation which shall
        become a Subsidiary after the date hereof.

               "TAXES" has the meaning specified in subsection 3.03(a) hereof.

               "TERMINATION DATE" means October 15, 1997 (as the same may be
        extended pursuant to Section 2.05 hereof), or the earlier date of
        termination in whole of the Commitments pursuant to Section 2.04 or
        8.01.

               "TYPE" refers to the determination whether an Advance is a Base
        Rate Advance, an Agreed Rate Advance, or a LIBOR Rate Advance (or a
        Borrowing comprised of such Advances).

               "UCC" has the meaning set forth in the Security Agreement.

               "UNINSURED CREDIT LOSSES" means (a) losses on the Receivables
        which are not covered by Credit Insurance and (b) losses on the
        Receivables which are covered by Credit Insurance and for which
        insurance claims have been filed by the Servicer and have been
        outstanding for more than 30 days past the maximum contractual payment
        date as specified in the applicable Credit Insurance, PROVIDED that, if
        such claim is subsequently paid, it shall no longer constitute an
        Uninsured Credit Loss.


                                      -15-
<PAGE>
               "VSI INSURANCE" means the policy or policies of insurance
        underwritten by Agricultural Excess and Surplus Insurance Company in the
        form attached hereto as EXHIBIT D or such other insurance as is
        satisfactory in form and substance to the Bank.

        Section 1.02. COMPUTATION OF TIME PERIODS. In this Agreement in the
computation of periods of time from a specified date to a later specified date,
unless otherwise specified herein the word "from" means "from and including" and
the words "to" and "until" each means "to but excluding."

        Section 1.03. ACCOUNTING TERMS. All accounting terms not specifically
defined herein shall be construed in accordance with GAAP consistent with those
applied in the preparation of the financial statements referred to in Section
5.07.

                                   ARTICLE II

                        AMOUNTS AND TERMS OF THE ADVANCES

        Section 2.01. THE ADVANCES. Each Bank severally agrees, on the terms and
conditions hereinafter set forth, to make Advances to the Borrower from time to
time on any Business Day during the period from the date hereof until the
Termination Date, in an aggregate amount not to exceed an amount equal to such
Bank's Loan Percentage of the Available Amount. Each Borrowing shall consist of
Advances of the same Type made on the same day by the Banks ratably according to
their respective Loan Percentage of the Available Amount. All Borrowings shall
be in an aggregate amount not less than $250,000 or an integral multiple of
$10,000 in excess thereof. Within the limits of each Bank's Loan Percentage of
the Available Amount, the Borrower may borrow, prepay pursuant to Sections 3.05
and 3.06 and reborrow under this Section 2.01. The principal amount outstanding
on the Advances shall mature and, together with accrued and unpaid interest
thereon, shall be due and payable on the Termination Date.

        Section 2.02. MAKING THE ADVANCES. (a) Each Borrowing shall be made on
the Borrower's oral notice, or on written notice in the form attached hereto as
EXHIBIT E ("NOTICE OF BORROWING") given by the Borrower to the Agent not later
than 11:00 A.M. (Dallas time) (i) on the second Business Day prior to the date
of the proposed Borrowing in the case of a LIBOR Rate Advance, (ii) on the
Business Day prior to the date of the proposed Borrowing in the case of an
Agreed Rate Advance and (iii) on the same Business Day of the proposed Borrowing
in the case of a Base Rate Advance. With respect to any oral notice, the
Borrower shall promptly thereafter confirm such notice by delivering a Notice of
Borrowing. Each Notice of Borrowing shall specify therein the requested (i) date
of such Borrowing, (ii) Type of Advances comprising such Borrowing, (iii)
aggregate amount of such Borrowing, and (iv) in the case of a Borrowing
comprised of LIBOR Rate Advances or Agreed Rate Advances, the initial Interest
Period for each such Advance. The Agent shall promptly deliver a copy of each
Notice of Borrowing to each Bank and, in the case of any Agreed Rate Borrowing,
shall, after conferring with the Borrower and the Banks, and with the consent of
all Banks notify the Borrower not later than 2:00 p.m. (Dallas time) on the
Business Day prior to the Borrowing, of the Agreed Rate with respect to such
Borrowing. Each Bank shall, before 12:00 noon (Dallas time) on the date of such
Borrowing, make available for the account of its Applicable Lending Office to
the Agent at its address referred to in Section 10.02, in immediately available
funds, such Bank's ratable portion of such Borrowing. After the Agent's receipt
of such funds and upon fulfillment of the applicable conditions set forth in
Article IV, the Agent will transfer such funds


                                      -16-
<PAGE>
to the Escrow Account to be made available to the Borrower as set forth in
Article II of the Escrow Agreement. Each Notice of Borrowing with respect to
LIBOR Rate or Base Rate Advances shall be irrevocable and binding on the
Borrower. In no event shall more than five Borrowings be outstanding at any
time.

        (b) Unless the Agent shall have received notice from a Bank prior to the
date of any Borrowing that such Bank will not make available to the Agent such
Bank's Loan Percentage of such Borrowing, the Agent may assume that such Bank
has made such portion available to the Agent on the date of such Borrowing in
accordance with subsection (a) of this Section 2.02 and the Agent may, in
reliance upon such assumption, make available to the Borrower on such date a
corresponding amount. If and to the extent that such Bank shall not have so made
such Loan Percentage available to the Agent, such Bank and the Borrower
severally agree to repay to the Agent forthwith on demand such corresponding
amount together with interest thereon, for each day from the date such amount is
made available to the Borrower until the date such amount is repaid to the
Agent, at (i) in the case of the Borrower, the interest rate applicable at the
time to Advances comprising such Borrowing and (ii) in the case of such Bank,
the lesser of (A) the Federal Funds Rate or (B) the Highest Lawful Rate. If such
Bank shall repay to the Agent such corresponding amount, such amount so repaid
shall constitute such Bank's Advance as part of such Borrowing for purposes of
this Agreement.

        (c) The failure of any Bank to make the Advance to be made by it as part
of any Borrowing shall not relieve any other Bank of its obligation, if any,
hereunder to make its Advance on the date of such Borrowing, but no Bank shall
be responsible for the failure of any other Bank to make the Advance to be made
by such other Bank on the date of any Borrowing.

        (d) The Borrower shall execute and deliver to the Agent for each Bank to
evidence the Advances made by such Bank pursuant to Section 2.01 hereof, a
revolving credit note (each such note a "FACILITY NOTE" and more than one
Facility Note, the "FACILITY NOTES") in the amount of such Bank's Commitment.
Each Note shall be substantially in the form of EXHIBIT F with the blanks
appropriately filled, and shall mature on the Termination Date.

        Section 2.03. FEES. (a) The Borrower agrees to pay to the Agent for the
account of each Bank (i) a commitment fee on the amount of each such Bank's
Commitment (whether or not principal amounts thereof are outstanding from time
to time) from the date hereof until November 1, 1996, and (ii) a commitment fee
on the daily average unused amount of each such Bank's Commitment from November
1, 1996 until the Termination Date, at the rate of 1/4 of 1% per annum, payable
on November 20, 1996 for the period from the Closing Date until such
Distribution Date, and thereafter, for each Collection Period on each
Distribution Date and continuing until the Termination Date. The fees payable
under this Section 2.03(a) shall be calculated by the Agent on the basis of a
360-day year, for the actual days (including the first day but excluding the
last day) occurring in the period for which such fee is payable. Each such
determination by the Agent shall be conclusive and binding for all purposes,
absent manifest error.

        (b) From time to time, the Borrower shall pay or cause First Investors
to pay the Agent an administrative agency fee in accordance with the terms of a
letter agreement, dated as of July 31, 1995, between the Agent and First
Investors.

        Section 2.04. REDUCTION OF THE COMMITMENTS. The Borrower shall have the
right, upon at least three Business Days' notice to the Agent, to terminate in
whole or reduce ratably in part the unused


                                      -17-
<PAGE>
portions of the respective Commitments of the Banks, PROVIDED that each partial
reduction shall be in the aggregate amount of $1,000,000 or an integral multiple
thereafter of $500,000.

        Section 2.05. EXTENSION OF TERMINATION DATE. On the date which is a
Business Day no less than forty-five (45) and no more than sixty (60) days prior
to the then-current Extension Date, the Borrower may elect to notify the Agent
in writing of its request for an extension of the Termination Date for a period
of one hundred eighty (180) days from such Termination Date. Promptly after
receipt of such request, the Agent shall notify the Banks of such request by
sending each Bank a Consent to Extension for its execution. Each Bank shall
return the executed Consent to Extension or notify the Agent in writing of its
rejection of the request on or prior to a date which is fifteen (15) Business
Days prior to the then-current Extension Date. In the event that any Bank fails
to so notify the Agent on or prior to such date, the request shall be deemed to
have been rejected by such Bank. The Commitments shall be extended hereunder
only upon the consent of all Banks whereupon the Termination Date and the
maturity date of each Note shall be deemed to be extended to a date which is one
hundred eighty (180) days after the then-current Termination Date. In the event
of the renewal and extension of the Commitments and the maturity date of the
Notes pursuant to this Section 2.05, the terms and conditions of this Agreement,
the Security Agreement, the Pledge Agreement and the other Loan Documents will
apply during such renewal and extension period and from and after the date of
such extension the term "Termination Date" shall mean the maturity date of the
Notes as so renewed and extended.

        Section 2.06. INTEREST. The Borrower shall pay interest on the unpaid
principal amount of each Advance made by each Bank from the date of such Advance
until such principal amount shall be paid in full, at the times and at the rates
per annum set forth below:

        (a) BASE RATE ADVANCES. During such periods as such Advance is a Base
Rate Advance, a rate per annum equal at all times to the lesser of (i) the Base
Rate in effect from time to time or (ii) the Highest Lawful Rate, payable on
each Distribution Date and on the Termination Date, PROVIDED that any amount of
principal which is not paid when due (whether at stated maturity, by
acceleration or otherwise) shall bear interest, from the date on which such
amount is due until such amount is paid in full, payable on demand, at a rate
per annum equal at all times to the lesser of (i) three percent (3%) per annum
above the Base Rate in effect from time to time or (ii) the Highest Lawful Rate.

        (b) LIBOR RATE ADVANCES. During such periods as such Advance is a LIBOR
Rate Advance, a rate per annum equal at all times during each Interest Period
for such Advance to the lesser of (i) the sum of the LIBOR Rate for such
Interest Period for such Advance plus the LIBOR Rate Margin or (ii) the Highest
Lawful Rate, payable, together with additional interest due under Section 2.07
hereof, on the last day of such Interest Period and on the Termination Date;
PROVIDED that any amount of principal which is not paid when due (whether at
stated maturity, by acceleration or otherwise) shall bear interest, from the
date on which such amount is due until such amount is paid in full, payable on
demand, at a rate per annum equal at all times to the lesser of (i) three
percent (3%) per annum above the Base Rate in effect from time to time or (ii)
the Highest Lawful Rate.

        (c) AGREED RATE ADVANCE. During such periods as such Advance is an
Agreed Rate Advance, a rate per annum equal at all times during such Interest
Period for such Advance to the lesser of (i) the Agreed Rate for such Interest
Period for such Advance or (ii) the Highest Lawful Rate, payable on the last day
of such Interest Period and on the Termination Date; PROVIDED that any amount of
principal which is not paid when due (whether at stated maturity, by
acceleration or otherwise) shall bear interest, from the date on which such
amount is due until such amount is paid in full, payable on demand, at a rate
per

                                      -18-
<PAGE>
annum equal at all times to the lesser of (i) three percent (3%) above the Base
Rate in effect from time to time or (ii) the Highest Lawful Rate.

        (d) INTEREST COMPUTATION. Computations of interest pursuant to this
Article II shall be made by the Agent with respect to Base Rate Advances or
Agreed Rate Advances based on the Prime Rate, on the basis of a year of 365 or
366 days, as the case may be, and with respect to Advances of any other type
(including Base Rate Advances based on the Federal Funds Rate), on the basis of
a year of 360 days, in each case for the actual number of days (including the
first day but excluding the last day) occurring in the period for which such
interest is payable. Each determination by the Agent of an interest rate
hereunder shall be conclusive and binding for all purposes, absent manifest
error.

        Section 2.07. ADDITIONAL INTEREST ON ADVANCES BASED ON THE LIBOR RATE.
Subject to Section 10.08 hereof, the Borrower shall pay to each Bank, so long as
such Bank shall be required under regulations of the Board of Governors of the
Federal Reserve System to maintain reserves with respect to liabilities or
assets consisting of or including Eurocurrency Liabilities, additional interest
on the unpaid principal amount of each Advance of such Bank during such periods
as such Advance is a LIBOR Rate Advance or an Agreed Rate Advance based on the
LIBOR Rate, from the date of such Advance until such principal amount is paid in
full, at an interest rate per annum equal at all times to the remainder obtained
by subtracting (i) the LIBOR Rate for such Interest Period for such Advance from
(ii) the rate obtained by dividing such LIBOR Rate by a percentage equal to 100%
minus the LIBOR Rate Reserve Percentage of such Bank actually incurred for such
Interest Period, payable on each date on which interest is payable on such
Advance pursuant to Section 2.06 hereof. A certificate as to amounts required to
be paid under this Section 2.07 submitted to the Borrower and the Agent by such
Bank and setting forth in reasonable detail the amount or amounts to be paid to
it hereunder shall be conclusive absent manifest error.

        Section 2.08. INTEREST RATE DETERMINATION AND PROTECTION. (a) The rate
of interest for (i) each LIBOR Rate Advance specified in a Notice of Borrowing
or a Notice of Interest Conversion, shall be determined by the Agent two (2)
Business Days before the first day of the Interest Period applicable for such
Advance and (ii) for each Agreed Rate Advance specified in a Notice of Borrowing
or a Notice of Interest Conversion shall be determined by the Agent, the Banks
and the Borrower as set forth in Section 2.02(a) hereof. The Agent shall give
prompt notice to the Borrower and the Banks of the applicable interest rate
determined by the Agent for purposes of Section 2.06(a), (b) or (c) hereof, and
each such determination by the Agent shall be conclusive, absent manifest error.

        (b) If, with respect to any LIBOR Rate Advances, the Majority Banks
notify the Agent that the LIBOR Rate for any Interest Period for such Advances
will not adequately reflect the cost to such Majority Banks of making, funding
or maintaining their respective LIBOR Rate Advances for such Interest Period,
the Agent shall forthwith so notify the Borrower and the Banks, whereupon

                      (i) each LIBOR Rate Advance which has been effected will
               automatically, on the last day of the then existing Interest
               Period therefor, convert into a Base Rate Advance, and

                      (ii) the obligation of the Banks to make, or to convert
               Advances into, LIBOR Rate Advances shall be suspended until the
               Agent shall notify the Borrower and the Banks that the
               circumstances causing such suspension no longer exist.

                                      -19-
<PAGE>
        (c) If the Borrower shall fail to deliver to the Agent a Notice of
Interest Conversion in accordance with Section 2.09 hereof, to select the
duration of any Interest Period for the principal amount outstanding under any
LIBOR Rate Advance or Agreed Rate Advance prior to the last day of the Interest
Period applicable to such Advance, the Agent will forthwith so notify the
Borrower and the Banks and such Advances will automatically, on the last day of
the then existing Interest Period therefor, convert into Base Rate Advances.

        (d) Notwithstanding any other provision of this Agreement, if any Bank
shall notify the Agent that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank
or other governmental authority asserts that it is unlawful, for any Bank or its
LIBOR Lending Office to perform its obligations hereunder to make LIBOR Rate
Advances or Agreed Rate Advances based on the LIBOR Rate or to fund or maintain
LIBOR Rate Advances or Agreed Rate Advances based on the LIBOR Rate hereunder,
(i) the obligation of the Banks to make, or to convert Advances into, LIBOR Rate
Advances or Agreed Rate Advances based on the LIBOR Rate shall be suspended
until the Agent shall notify the Borrower and the Banks that the circumstances
causing such suspension no longer exist and (ii) the Borrower shall forthwith
prepay in full all LIBOR Rate Advances or Agreed Rate Advances based on the
LIBOR Rate of all Banks then outstanding, together with interest accrued
thereon, unless the Borrower, within three Business Days of notice from the
Agent, converts all LIBOR Rate Advances or Agreed Rate Advances based on the
LIBOR Rate of all Banks then outstanding into Base Rate Advances in accordance
with Section 2.09.

        Section 2.09. VOLUNTARY INTEREST CONVERSION OF ADVANCES. The Borrower
may on any Business Day, upon the Borrower's oral or written notice ("NOTICE OF
INTEREST CONVERSION") given by the Borrower to the Agent not later than 11:00 A
M. (Dallas time) on the second Business Day prior to the date of the proposed
interest conversion in the case of LIBOR Rate or Agreed Rate Advances, (i)
convert all Advances of one Type into Advances of another Type, (ii) convert all
LIBOR Rate Advances for a specified Interest Period into LIBOR Rate Advances for
a different Interest Period or (iii) convert all Agreed Rate Advances for a
specified Interest Period into Agreed Rate Advances for a different Interest
Period; PROVIDED, HOWEVER, with respect to any oral Notice of Interest
Conversion, the Borrower shall promptly confirm such notice in writing; PROVIDED
FURTHER that, any conversion of any LIBOR Rate Advances into LIBOR Rate Advances
for a different Interest Period, or into Base Rate Advances, or of Agreed Rate
Advances into Agreed Rate Advances for a different Interest Period, or into Base
Rate Advances shall be made on, and only on, the last day of an Interest Period
for such LIBOR Rate Advances or Agreed Rate Advances, as the case may be;
PROVIDED FURTHER that no conversion into a LIBOR Rate Advance or an Agreed Rate
Advance will be permitted if at the time of receipt by the Agent of the Notice
of Interest Conversion, a Default or Event of Default shall have occurred and be
continuing. Each such Notice of Interest Conversion shall specify therein the
requested (i) date of such interest conversion, (ii) the Advances to be
converted, and (iii) if such interest conversion is into Advances constituting
LIBOR Rate Advances or Agreed Rate Advances, as the case may be, the duration of
the Interest Period for each such Advance. The Agent shall promptly deliver a
copy of each Notice of Interest Conversion to each Bank. Each Notice of Interest
Conversion shall be irrevocable and binding on the Borrower. In no event shall
more than five (5) Interest Periods be in effect at any time with respect to
LIBOR Rate Advances.

        Section 2.10. FUNDING LOSSES RELATING TO FIXED RATE ADVANCES. (a) If any
payment of principal of, or interest conversion of, any Fixed Rate Advance is
made other than on the last day of an Interest Period relating to such Advance,
as a result of a payment or conversion pursuant to Section 2.08 or Section 2.09,
or acceleration of the maturity of any Note in accordance with the terms hereof,
or for any

                                      -20-
<PAGE>
other reason, the Borrower shall, upon demand by the Agent or any Bank (with a
copy of such demand to the Agent), pay to the Agent for the account of such Bank
any amounts required to compensate such Bank for any additional losses, costs,
or expenses which it may reasonably incur as a result of such payment or
interest conversion, including, without limitation, any loss, cost, or expense
incurred by reason of the liquidation or reemployment of the amounts so prepaid
or of deposits or other funds acquired by such Bank to fund or maintain such
Advance, as determined in accordance with Section 2.10(c).

        (b) In the case of any Borrowing, the Borrower shall indemnify each Bank
against any loss, cost, or expense incurred by such Bank as a result of any
failure to fulfill on or before the date specified in a Notice of Borrowing the
applicable conditions set forth in Article IV, including, without limitation,
any loss, cost, or expense incurred by reason of the liquidation or reemployment
of the amounts so prepaid or of deposits or other funds acquired by such Bank to
fund the Advance to be made by such Bank as part of such Borrowing when such
Advance, as a result of such failure, is not made on such date, as determined in
accordance with Section 2.10(c).

        (c) The losses, costs and expenses reasonably incurred by any Bank and
covered under Sections 2.10(a) and (b) hereof shall include, without limitation,
an amount equal to the excess, if any, as reasonably determined by each Bank of
(i) its cost of obtaining the funds for the Advance being paid, prepaid or
converted or not borrowed (based on the Fixed Rate applicable thereto) for the
period from the date of such payment, prepayment or conversion or failure to
borrow to the last day of the Interest Period for such Advance (or, in the case
of a failure to borrow, the Interest Period for the Advance which would have
commenced on the date of such failure to borrow) over (ii) the amount of
interest (as determined by the Bank in its sole judgment) that would be realized
by such Bank in reemploying the funds so paid, prepaid or converted or not
borrowed for such period or Interest Period, as the case may be, PROVIDED that
each Bank will use its best efforts to reemploy such funds in investments of
similar quality.

        (d) Any Bank demanding payment under this Section 2.10 shall deliver to
the Borrower and the Agent a statement reasonably setting forth the amount and
manner of determining such loss, cost, or expense, which statement shall be
conclusive and binding for all purposes, absent manifest error. Any demand for
compensation pursuant to this Section 2.10 must be made on or before 90 days
after a Bank incurs the expense, cost or economic loss referred to or such Bank
shall be deemed to have waived the right to such compensation.


                                   ARTICLE III

                INCREASED COSTS, TAXES, PAYMENTS AND PREPAYMENTS

        Section 3.01. INCREASED COSTS; CAPITAL ADEQUACY. (a) If, due to either
(i) the introduction of or any change (other than any change by way of
imposition or increase of reserve requirements, in the case of LIBOR Rate
Advances or Agreed Rate Advances based on the LIBOR Rate, included in the LIBOR
Rate Reserve Percentage) in or in the interpretation of any law or regulation or
(ii) the compliance with any guideline or request from any central bank or other
governmental authority (whether or not having the force of law), there shall be
any increase in the cost to any Bank of agreeing to make or making, funding or
maintaining Fixed Rate Advances, then the Borrower shall from time to time, upon


                                      -21-
<PAGE>
demand by such Bank (with a copy of such demand to the Agent), pay to the Agent
for the account of such Bank additional amounts sufficient to compensate such
Bank for such increased cost.

        (b) If any Bank determines that compliance with any law or regulation or
any guideline or request from any central bank or other governmental authority
(whether or not having the force of law) affects or would affect the amount of
capital required or expected to be maintained by such Bank or any corporation
controlling such Bank and that the amount of such capital is increased by or
based upon the existence of such Bank's Commitments to lend hereunder and other
commitments of this type, then, upon demand by such Bank (with a copy of such
demand to the Agent), the Borrower shall immediately pay to the Agent for the
account of such Bank, from time to time as specified by such Bank, additional
amounts sufficient to compensate such Bank or such corporation in the light of
such circumstances, to the extent that such Bank reasonably determines such
increase in capital to be allocable to the existence of such Bank's Commitment
to lend hereunder.

        (c) A certificate as to amounts required to be paid under this Section
3.01 submitted to the Borrower and the Agent by such Bank and setting forth in
reasonable detail the amount or amounts to be paid to it hereunder shall be
conclusive and binding for all purposes, absent manifest error.

        Section 3.02. PAYMENTS AND COMPUTATIONS. (a) The Borrower shall make
each payment hereunder and under the Notes not later than 11:00 a.m. (Dallas
time) on the day when due in U.S. dollars to the Agent at its address referred
to in Section 10.02 in immediately available funds (each such payment received
after such time on such due date to be deemed to have been made on the next
succeeding Business Day). The Agent will promptly thereafter cause to be
distributed like funds relating to the payment of principal or interest or fees
(to the extent received by the Agent) ratably to the Banks for the account of
their respective Applicable Lending Offices, and like funds relating to the
payment of any other amount payable to any Bank (to the extent received by the
Agent) to such Bank for the account of its Applicable Lending Office, in each
case to be applied in accordance with the terms of this Agreement.

        (b) Whenever any payment hereunder or under the Notes shall be stated to
be due on a day other than a Business Day, such payment shall be made on the
next succeeding Business Day, and such extension of time shall in such case be
included in the computation of payment of interest or fees, as the case may be;
PROVIDED HOWEVER, if such extension would cause payment of interest on or
principal of LIBOR Rate Advances or Agreed Rate Advances based on the LIBOR Rate
to be made in the next following calendar month, such payment shall be made on
the next preceding Business Day.

        (c) Unless the Agent shall have received notice from the Borrower prior
to the date on which any payment is due to the Banks hereunder that the Borrower
will not make such payment in full, the Agent may assume that the Borrower has
made such payment in full to the Agent on such date and the Agent may, in
reliance upon such assumption, cause to be distributed to each Bank on such due
date an amount equal to the amount then due such Bank. If and to the extent the
Borrower shall not have so made such payment in full to the Agent, each Bank
shall repay to the Agent forthwith on demand such amount distributed to such
Bank together with interest thereon, for each day from the date such amount is
distributed to such Bank until the date such Bank repays such amount to the
Agent, at the lesser of (i) the Federal Funds Rate or (ii) the Highest Lawful
Rate.

        Section 3.03. TAXES. (a) Any and all payments by the Borrower hereunder
or under the Notes shall be made, in accordance with Section 3.02, free and
clear of and without deduction for any and all present or future taxes, levies,
imposts, deductions, charges or withholdings, and all liabilities with respect


                                      -22-
<PAGE>
thereto, excluding, in the case of each Bank and the Agent, taxes imposed on its
income, and franchise taxes imposed on it, by the jurisdiction under the laws of
which such Bank or the Agent (as the case may be) is organized or any political
subdivision thereof and, in the case of each Bank, taxes imposed on its income,
and franchise taxes imposed on it, by the jurisdiction of such Bank's Applicable
Lending Office or any political subdivision thereof (all such non-excluded
taxes, levies, imposts, deductions, charges, withholdings and liabilities being
hereinafter referred to as "TAXES"). If the Borrower shall be required by law to
deduct any Taxes from or in respect of any sum payable hereunder or under any
Note to any Bank or the Agent, (i) the sum payable shall be increased as may be
necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section 3.03) such Bank or the
Agent (as the case may be) receives an amount equal to the sum it would have
received had no such deductions been made, (ii) the Borrower shall make such
deductions and (iii) the Borrower shall pay the full amount deducted to the
relevant taxation authority or other authority in accordance with applicable
law.

        (b) In addition, the Borrower agrees to pay any present or future stamp
or documentary taxes or any other excise or property taxes, charges or similar
levies which arise from any payment made hereunder or under the Notes or from
the execution, delivery or registration of, or otherwise with respect to, this
Agreement or the Notes (hereinafter referred to as "OTHER TAXES").

        (c) The Borrower will indemnify each Bank and the Agent for the full
amount of Taxes or Other Taxes (including, without limitation, any Taxes or
Other Taxes imposed by any jurisdiction on amounts payable under this Section
3.03) paid by such Bank or the Agent (as the case may be) and any liability
(including penalties, interest and expenses) arising therefrom or with respect
thereto, whether or not such Taxes or Other Taxes were correctly or legally
asserted. Amounts payable pursuant to this indemnification shall be paid within
thirty (30) days from the date such Bank or the Agent (as the case may be) makes
written demand therefor.

        (d) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in
this Section 3.03 shall survive the payment in full of principal and interest
hereunder and under the Notes.

        Section 3.04. SHARING OF PAYMENTS, ETC.. If any Bank shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of any Advance made by it (other than pursuant
to Sections 2.07, 2.10, 3.01 or 3.03) in excess of its ratable share of payments
on account of the Advances, such Bank shall forthwith purchase from the other
Banks such participations in the Advances made by them as shall be necessary to
cause such purchasing Bank to share the excess payment ratably with each of
them, PROVIDED, HOWEVER, that if all or any portion of such excess payment is
thereafter recovered from such purchasing Bank, such purchase from each Bank
shall be rescinded and such Bank shall repay to the purchasing Bank the purchase
price to the extent of such recovery together with an amount equal to such
Bank's ratable share (according to the proportion of (i) the amount of such
Bank's required repayment to (ii) the total amount so recovered from the
purchasing Bank) of any interest or other amount paid or payable by the
purchasing Bank in respect of the total amount so recovered. The Borrower agrees
that any Bank so purchasing a participation from another Bank pursuant to this
Section 3.04 may, to the fullest extent permitted by law, exercise all its
rights of payment (including the right of set-off) with respect to such
participation as fully as if such Bank were the direct creditor of the Borrower
in the amount of such participation.

                                      -23-
<PAGE>
        Section 3.05. VOLUNTARY PREPAYMENTS. The Borrower may at any time and
from time to time, prepay an Advance, in whole or in part, (a) in the case of a
LIBOR Rate Advance or an Agreed Rate Advance, upon at least two Business Days'
written notice, provided that in the event Borrower prepays Fixed Rate Advances
in whole or in part on a day which is not the last day of the Interest Period
applicable thereto, the provisions of Section 2.10 shall apply and (b) in the
case of a Base Rate Advance, upon same Business Day written notice; PROVIDED,
HOWEVER, that all such prepayments shall be made together with accrued interest
to the date of such prepayment on the principal amount prepaid without premium
or penalty thereon. Each notice of prepayment shall specify the prepayment date
and the principal amount of each Advance(s) (or portion thereof) to be prepaid,
and shall be irrevocable and the payment amount specified in such notice shall
be due and payable on the prepayment date described in such notice, together
with accrued and unpaid interest on the amount prepaid. Partial prepayments with
respect to any Advance shall be in an aggregate principal amount of $500,000 or
greater integral multiples of $10,000.

        Section 3.06. MANDATORY PREPAYMENTS. (a) If at any time the aggregate
outstanding principal balance of the Advances exceeds an amount equal to the
lesser of the Borrowing Base or the Commitments at such time, then the Borrower
shall immediately pay to the Agent for the ratable account of the Banks the
amount of such excess, together with accrued and unpaid interest thereon.

        b) Promptly after the receipt thereof, the Borrower will pay to the
Agent 100% of the proceeds received by the Borrower from any transfer or
assignment of Receivables to First Investors under the Purchase Agreement, and
upon receipt thereof the Agent shall cause the Bank Collateral Agent to release
the lien covering such collateral created in its favor pursuant to the Security
Agreement.

        Section 3.07. BANK COLLATERAL AGENT AS BORROWER'S PAYING AGENT. The
Agent and the Banks acknowledge that the Borrower has appointed the Bank
Collateral Agent as its paying agent under the Security Agreement and that all
payments required to be made by the Borrower under Sections 2.03, 2.06 or 2.07
or Article III or any other section hereof shall be deemed to have been made by
the Borrower if such payments are made by the Bank Collateral Agent.

        Section 3.08. SUBSTITUTION OF BANK. In the event the Borrower is
required to pay any material amounts to any Bank pursuant to Section 2.10,
Section 3.01(a) or (b), or Section 3.03 hereof, the Borrower may give at least
forty-five (45) days prior notice to such Bank (with copies to the Agent) that
it wishes to seek one or more Assignees (which may be one or more of the Banks)
to assume the Commitments of such Bank and to purchase its outstanding Advances
and Notes and the Agent will use its best efforts to assist Borrower in
obtaining an Assignee, PROVIDED, HOWEVER, that if more than one Bank requests
that Borrower pay substantially and proportionately equal additional amounts
under any such sections and Borrower elects to seek an Assignee(s) to assume the
Commitments of any one of such affected Banks, Borrower must seek Assignee(s) to
assume the Commitments of all of such affected Banks. Each Bank requesting
compensation pursuant to Section 2.10, Section 3.01, or Section 3.03 hereof
agrees to sell its Commitments, Advances, Notes and interest in this Agreement
in accordance with Section 10.07 to any such Assignee for an amount equal to the
sum of the outstanding unpaid principal of and accrued interest on such Advances
and Notes PLUS all other fees and amounts (including, without limitation, any
compensation claimed by such Bank under any such sections) due such Bank
hereunder calculated, in each case, to the date such Commitments, Advances,
Notes and interest are purchased. Upon such sale or prepayment, said Bank shall
have no further Commitment or other obligation to Borrower hereunder or under
any Note.

                                      -24-
<PAGE>
                                   ARTICLE IV

                              CONDITIONS OF LENDING

        Section 4.01. CONDITIONS PRECEDENT TO INITIAL ADVANCES. The obligation
of each Bank to make its initial Advance is subject to the condition precedent
that the Agent shall have received on or before the day of the initial Borrowing
the following, each dated such day, in form and substance satisfactory to the
Agent and (except for the Notes) in sufficient copies for each Bank:

        (a) The Notes, duly executed by the Borrower and payable to the order of
each Bank.

        (b) This Agreement, duly executed by the Borrower.

        (c) The Security Agreement, duly executed by the Borrower, the Agent,
the Banks and the Bank Collateral Agent.

        (d) The Pledge Agreement, duly executed by First Investors and the
Agent.

        (e) A copy of the Servicing Agreement, in form and substance acceptable
to the Agent and duly executed by the Borrower and the Servicer.

        (f) A copy of the Purchase Agreement, duly executed by the parties
thereto.

        (g) A certificate of the Secretary of each of the Borrower and First
Investors, certifying (1) the names and true signatures of its officers
authorized to sign each Loan Document and Receivables Document to which it is a
party and the notices and other documents to be delivered by it pursuant to any
such Loan Document or Receivables Document; (2) its By-laws and Articles or
Certificate of Incorporation as in effect on the date of such certification; and
(3) the resolutions of its Board of Directors approving and authorizing the
execution, delivery, and performance by it of each Loan Document and Receivables
Document to which it is a party, the notices and other documents to be delivered
by it pursuant to any such Loan Document or Receivables Document, and the
transactions contemplated thereunder.

        (h) Certificates of appropriate officials as to the existence and good
standing of (i) the Borrower in its jurisdiction of incorporation and any and
all other jurisdictions where the Property owned or the business transacted by
the Borrower requires the Borrower to be qualified therein and where the failure
to be so qualified would have a Material Adverse Effect and (ii) each of FIARC
and First Investors in its jurisdiction of incorporation.

        (i) A favorable opinion of Buck, Keenan & Owens, L.L.P., counsel for the
Borrower, FIARC and First Investors, substantially in the form of EXHIBIT G
hereto and as to such other matters as any Bank through the Agent may reasonably
request.

        (j) Acknowledgment copies of proper Financing Statements (Form UCC-1),
duly filed on or before the Closing Date, naming the Borrower as the debtor and
the Bank Collateral Agent as the secured party, or other, similar instruments or
documents, as may be necessary or, in the opinion of the Agent, desirable under
the UCC of all appropriate jurisdictions or any comparable law to perfect the


                                      -25-
<PAGE>
Agent's and the Banks' security interests in all Receivables and related
security and the Collateral Account in which an interest may be assigned under
the Security Agreement.

        (k) Certified copies of Requests for Information or Copies (Form UCC-11)
(or a similar search report certified by a party acceptable to the Agent), dated
on or before the Closing Date, listing all effective financing statements which
name the Borrower, FIARC or First Investors (under its present name and any
previous name) as debtor and which are filed in the jurisdictions in which
filings were made pursuant to subsection (o) of this Section 4.01, together with
copies of such financing statements.

        (l) The ALPI Insurance, the GAP Insurance, and the VSI Insurance are in
form and substance satisfactory to the Agent and the Agent shall have been named
as an additional insured with respect thereto.

        (m) A copy of each of the Enterprise Agreement and the other documents
contemplated thereby, duly executed and delivered by the parties thereto, in
form and substance satisfactory to the Banks.

        (n) Such other documents and instruments with respect to the
transactions contemplated hereby as the Agent may reasonably request.

        Section 4.02. CONDITIONS PRECEDENT TO EACH BORROWING (INCLUDING THE
INITIAL BORROWING). The obligation of each Bank to make an Advance on the
occasion of each Borrowing (including the initial Borrowing) shall be subject to
the further conditions precedent that on the date of such Borrowing:

        (a) the Agent shall have received a Notice of Borrowing in accordance
with the terms of this Agreement;

        (b) Credit Insurance is in full force and effect for all Receivables and
for the Receivables to be purchased with the proceeds of the Advance, and the
Agent shall not have received a notice of cancellation of the Credit Insurance
from any of the providers thereof;

        (c) both before and after giving effect to the Borrowing, the aggregate
amount of outstanding Advances shall not exceed an amount equal to the lesser of
the Borrowing Base or the Commitments at such time; and

        (d) the Agent shall have received such other approvals, information,
opinions or documents as any Bank through the Agent may reasonably request.


                                    ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

        In order to induce the Banks to enter into this Agreement, the Borrower
represents and warrants to the Banks (which representations and warranties will
survive the delivery of any Note and the making of any Advance) that:

                                      -26-
<PAGE>
        Section 5.01. EXISTENCE. The Borrower is a corporation duly organized,
validly existing, and in good standing under the laws of Delaware and is duly
qualified or licensed to do business in all jurisdictions where the Property
owned or the business transacted by it makes such qualification necessary and
where the failure to be so qualified would have a Material Adverse Effect.

        Section 5.02. POWER AND AUTHORIZATION. The Borrower is duly authorized
and empowered to execute, deliver, and perform its obligations under each Loan
Document and the Receivables Documents, and all corporate or other action on the
Borrower's part requisite for the due execution, delivery, and performance of
each Loan Document and the Receivables Documents, has been duly and effectively
taken. The Borrower is duly authorized and empowered to borrow under this
Agreement and all corporate action on the Borrower's part requisite for
borrowing by the Borrower hereunder has been duly and effectively taken.

        Section 5.03. NO CONFLICT OR RESULTANT LIEN. The execution, delivery,
and performance by the Borrower of each Loan Document and the Receivables
Documents, the Borrowings hereunder by the Borrower as contemplated herein, and
the effectuation of the transactions contemplated by any Loan Document and the
Receivables Documents, do not and will not violate any provision of, or result
in a default under, the Borrower's Certificate of Incorporation or other charter
documents or By-laws or any material agreement to which the Borrower is a party,
or Governmental Requirement to which the Borrower is subject, or result in the
creation or imposition of any Lien upon any Property of the Borrower, and no
transaction contemplated by the Receivables Documents requires compliance with
any bulk sales act or similar law. No Default or Event of Default has occurred
and is continuing.

        Section 5.04. RECEIVABLES. The transfer and assignment contemplated
under the Purchase Agreement constitutes a sale of the Receivables from First
Investors to the Borrower and the beneficial interest in and title to the
Receivables shall not be part of the debtor's estate in the event of the filing
of a bankruptcy petition by or against First Investors under any bankruptcy law.
Immediately prior to the transfer and assignment contemplated under the Purchase
Agreement, First Investors had good and marketable title to each Receivable free
and clear of all Liens, encumbrances, security interests, and rights of others
and, immediately upon the transfer thereof, the Borrower shall have good and
marketable title to each Receivable, free and clear of all Liens, encumbrances,
security interests, and rights of others; and the transfer has been perfected
under the UCC.

        Section 5.05. NO CONSENT. No authorization or approval or other action
by, and no notice to or filing with, any Person or any Governmental Authority is
required for the due execution, delivery, and performance by the Borrower of
this Agreement or any other Loan Document or the Receivables Documents, the
Borrowings hereunder as contemplated herein, or the effectuation of the
transactions contemplated under any Loan Document or Receivables Document.

        Section 5.06. BINDING OBLIGATIONS. Each Loan Document and Receivable
Document constitutes the legal, valid and binding obligation of the Borrower
enforceable against it in accordance with its respective terms, except as such
enforceability may be (a) limited by the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws relating to or
affecting the enforcement of creditor's rights generally, and (b) subject to the
effect of general principles of equity (regardless of whether such
enforceability is considered in a proceeding at equity or at law).

                                      -27-
<PAGE>
        Section 5.07. FINANCIAL CONDITION. The certified consolidated audited
balance sheet of FIS Group and its Subsidiaries as at April 30, 1996, and the
related certified consolidated statements of income and stockholder's equity and
cash flow statements of FIS Group and its Subsidiaries for the Borrower's annual
fiscal period ending April 30, 1996 and the unaudited consolidated balance sheet
of FIS Group and its Subsidiaries as at July 31, 1996 and the related unaudited
consolidated statements of income and changes in stockholders' equity and cash
flow statements for the fiscal quarter then ended, certified by an officer of
FIS Group, copies of which have been furnished to each Bank, have been prepared
in accordance with GAAP and in accordance with FIS Group's and each Subsidiary's
accounting practices consistently applied, and certified by a Responsible
Officer as presenting fairly the consolidated financial condition of FIS Group
and its Subsidiaries as at such date and the results of the operations of FIS
Group and its Subsidiaries for the period ended on such date, all in accordance
with GAAP, and that, in the case of FIS Group and its Subsidiaries on a
consolidated basis, since April 30, 1996, and in the case of the Borrower, since
April 30, 1996, there has been no material adverse change in its financial
condition, business, Properties or operations. The Borrower has no obligations,
liabilities, or Debts (including, without limitation, contingent and indirect
liabilities and obligations) except for Permitted Debt.

        Section 5.08. LITIGATION. There are no actions, suits, or proceedings
pending or, to the knowledge of the Borrower, threatened against or affecting
the Borrower, FIARC or First Investors, or the Properties of the Borrower, FIARC
or First Investors, which could, individually or in the aggregate, reasonably be
determined to have a Material Adverse Effect.

        Section 5.09. USE OF PROCEEDS; MARGIN STOCK. The proceeds of each
Advance will be used by the Borrower to purchase Receivables from First
Investors. The Borrower is not engaged in the business of extending credit for
the purpose of purchasing or carrying Margin Stock, and no proceeds of any
Advance will be used (A) to purchase or carry any Margin Stock or to extend
credit to others for the purpose of purchasing or carrying any Margin Stock; (B)
to reduce or retire any Debt which was originally incurred to purchase or carry
any such Margin Stock; (C) for any other purpose which might constitute this
transaction a "purpose credit" within the meaning of Regulation G, T, U or X; or
(D) to acquire any security of any Person who is subject to Sections 13 and 14
of the Securities Exchange Act. Neither the Borrower, nor any Person acting on
behalf of the Borrower, has taken or will take any action which might cause any
Loan Document or Receivables Document to violate Regulation G, T, U or X or any
other regulation of the Board of Governors of the Federal Reserve System.

        Section 5.10. TAXES; GOVERNMENTAL CHARGES. The Borrower has filed or
caused to be filed all federal, state, and foreign income tax returns which are
required to be filed, and has paid or caused to be paid all taxes as shown on
such returns or on any assessment received by it to the extent that such taxes
have become due.

        Section 5.11. FULL DISCLOSURE. All information heretofore or
contemporaneously furnished by or on behalf of the Borrower or First Investors
in writing to the Agent or any Bank for purposes of or in connection with this
Agreement or any transaction contemplated hereby is, and all other such
information hereafter furnished by or on behalf of the Borrower or First
Investors in writing to the Agent or any Bank will be, (i) true and accurate in
all material respects on the date as of which such information is dated or
certified and (ii) not incomplete by omitting to state any material fact
necessary to make such information not misleading in light of the circumstances
under which such information was provided. There is no fact known to the
Borrower or First Investors which is reasonably likely to have a Material
Adverse Effect,


                                      -28-
<PAGE>
which has not been disclosed herein or in such other written documents,
information or certificates furnished to the Agent and the Banks for use in
connection with the transactions contemplated hereby.

        Section 5.12. INVESTMENT COMPANY ACT. Neither First Investors nor the
Borrower is an "investment company" or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

        Section 5.13. ENVIRONMENTAL MATTERS. Each of the Borrower and First
Investors is in compliance with all Environmental Protection Statutes.

        Section 5.14. CAPITAL STRUCTURE. The Borrower has no Subsidiaries. All
of the issued and outstanding shares of capital stock of the Borrower are fully
paid and nonassessable and are owned beneficially and of record by First
Investors. The Borrower has not granted or issued, or agreed to grant or issue,
any options, warrants or similar rights to any Person to acquire any shares of,
or other securities convertible into, the Borrower's capital stock.

        Section 5.15. COMPLIANCE WITH LAW. The business and operations of the
Borrower as conducted at all times have been and are in compliance in all
material respects with all applicable Governmental Requirements.

        Section 5.16. ERISA. Neither the Borrower nor any ERISA Affiliate has
ever established, maintained, contributed to or been obligated to contribute to,
and neither the Borrower nor any ERISA Affiliate has any liability or obligation
with respect to any PBGC Plan, Multiemployer Plan or Multiple Employer Plan.
Neither the Borrower nor any ERISA Affiliate has any present intention to
establish a PBGC Plan, a Multiemployer Plan or a Multiple Employer Plan. Neither
the Borrower nor any ERISA Affiliate has ever established, maintained,
contributed to or been obligated to contribute to any employee welfare benefit
plan (as defined in Section 3(1) of ERISA) which provides benefits to retired
employees (other than as required by Section 601 of ERISA). The Borrower and any
ERISA Affiliate are in compliance in all material respects with all applicable
provisions of ERISA and the Code with respect to each Plan, including the
fiduciary provisions thereof, and each Plan is, and has been, maintained in
compliance with ERISA and, where applicable, the Code. Full payment when due has
been made of all amounts which the Borrower or any ERISA Affiliate is required
under the terms of each Plan or applicable law to have paid as contributions to
such Plan as of the date hereof.

        Section 5.17. NO DEFAULT OR EVENT OF DEFAULT. No event has occurred or
is continuing which constitutes a Default or Event of Default hereunder.

        Section 5.18. PERMITS AND LICENSES. All material permits, licenses and
other governmental authorizations necessary for the Borrower to carry on its
business have been obtained and are in full force and effect and the Borrower is
not in material breach of the foregoing. The Borrower owns or possesses adequate
licenses or other valid rights to use United States trademarks, trade names,
service marks, copyrights, patents and applications therefore which are material
to the conduct of the business, operations or financial condition of the
Borrower.

        Section 5.19. SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties of the Borrower in each Loan Document and the
Receivables Documents shall survive the delivery of the Notes and the making of
any Advance, and shall continue after the repayment of the Notes and the


                                      -29-
<PAGE>
termination of the Commitments, and any investigation at any time made by or on
behalf of the Agent or any Bank shall not diminish any Bank's right to rely
thereon.

                                   ARTICLE VI

                      AFFIRMATIVE COVENANTS OF THE BORROWER

        So long as any Note shall remain unpaid or any Bank shall have any
Commitment hereunder, the Borrower agrees, unless the Majority Banks shall
otherwise consent in writing, as follows:

        Section 6.01. COMPLIANCE WITH LAWS, ETC. The Borrower will comply in all
material respects with all applicable laws (including, without limitation, all
Environmental Protection Statutes), rules, regulations and orders of any
Governmental Authority.

        Section 6.02. REPORTING AND NOTICE REQUIREMENTS. The Borrower will
furnish or cause to be furnished to the Agent for delivery to the Banks:

               (a) QUARTERLY FINANCIAL STATEMENTS. As soon as available and in
        any event within forty-five (45) days after the end of each fiscal
        quarter of FIS Group (including the last quarter), consolidating balance
        sheets of FIS Group and its Subsidiaries as of the end of such quarter
        and consolidating statements of income and stockholder's equity and cash
        flow statements of FIS Group and its Subsidiaries for the period
        commencing at the end of the previous fiscal year of FIS Group and
        ending with the end of such fiscal quarter, setting forth in each case
        in comparative form corresponding consolidating figures for the
        corresponding period in the immediately preceding fiscal year of FIS
        Group, all in reasonable detail and certified by a Responsible Officer
        as presenting fairly the consolidating and consolidated financial
        position of FIS Group and its Subsidiaries as of the date indicated and
        the results of their operations for the period indicated in conformity
        with GAAP, consistently applied, subject to changes resulting from
        year-end adjustments.

               (b) ANNUAL FINANCIAL STATEMENTS. As soon as available and in any
        event within one hundred twenty (120) days after the end of each fiscal
        year of FIS Group, audited consolidated statements of income and
        stockholder's equity and cash flow statements of FIS Group and its
        Subsidiaries for such fiscal year, and audited consolidated balance
        sheets of FIS Group and its Subsidiaries as of the end of such fiscal
        year, setting forth in each case in comparative form corresponding
        consolidated figures from the immediately preceding audit, together with
        unaudited consolidating schedules to such financial statements, all in
        reasonable detail and satisfactory in form, substance, and scope to the
        Agent, together with the unqualified opinion of Arthur Andersen & Co. or
        such other independent certified public accountants of recognized
        national standing as are selected by FIS Group and satisfactory to the
        Agent, stating that such financial statements fairly present the
        consolidated financial position of FIS Group and its Subsidiaries as of
        the date indicated and the consolidated results of their operations and
        changes in financial position for the period indicated in conformity
        with GAAP, consistently applied (except for such inconsistencies which
        may be disclosed in such report), and that the audit by such accountants
        in connection with such consolidated financial statements has been made
        in accordance with GAAP.


                                      -30-
<PAGE>
               (c) NOTICE OF DEFAULT. Immediately after any officer of the
        Borrower knows or has reason to know that any Default or Event of
        Default has occurred, a written statement of such officer of the
        Borrower setting forth the details of such Default or Event of Default
        and the action which the Borrower has taken or proposes to take with
        respect thereto.

               (d) NOTICE OF LITIGATION. Promptly after any officer of the
        Borrower obtaining knowledge of the commencement thereof, notice of any
        litigation, legal, administrative, or arbitral proceeding,
        investigation, or other action of any nature against FIS Group or the
        Borrower which could reasonably be expected to have a Material Adverse
        Effect, and upon request by the Agent or any Bank, details regarding
        such litigation which are satisfactory to the Agent or such Bank.

               (e) SECURITIES FILINGS. Promptly after the sending or filing
        thereof and in any event within fifteen (15) days thereof, copies of all
        reports which FIS Group sends to any of its security holders, and copies
        of all reports (including each regular and periodic report) and each
        registration statement or prospectus which FIS Group or the Borrower
        files with the Securities and Exchange Commission or any national
        securities exchange.

               (f) ERISA NOTICES. Promptly after the filing or receiving
        thereof, copies of all reports and notices which the Borrower files
        under ERISA with the Internal Revenue Service or the Pension Benefit
        Guaranty Corporation or the U.S. Department of Labor or which the
        Borrower receives from such Governmental Authorities or Pension Benefit
        Guaranty Corporation.

               (g) COMPLIANCE CERTIFICATE; RECEIVABLES REPORTS. (i) On or before
        the fifteenth day of each calendar month during the term of this
        Agreement, a Compliance Certificate (a copy of which shall also be
        delivered to the Bank Collateral Agent) which shall demonstrate
        compliance with the financial covenants set forth in Section 7.13 as of
        the end of the preceding Collection Period and for the three immediately
        preceding Collection Periods, shall set forth the Borrowing Base and
        Uninsured Credit Losses, each determined as of the end of the preceding
        Collection Period, together with a certification of such amounts by a
        Responsible Officer of the Borrower, and shall state that no Default or
        Event of Default has occurred or is continuing, or if any such condition
        or event exists, specifying the nature and period of existence thereof
        and what action the Borrower has taken or is taking with respect
        thereto, (ii) on or before the tenth day of each calendar month during
        the term of this Agreement, the reports and Servicer's Certificate (as
        defined in the Servicing Agreement) delivered to the Borrower by the
        Servicer pursuant to Section 4.09 of the Servicing Agreement, and (iii)
        on or before the eighteenth day of each calendar month during the term
        of this Agreement, a disbursement statement in the form of EXHIBIT H
        hereto from the Bank Collateral Agent, together with such schedules,
        computations and other information as may be requested by the Agent.

               (h)    ERISA NOTICES, INFORMATION AND COMPLIANCE.

                      (i) As soon as possible and in any event within ten days
               after the Borrower or any of its ERISA Affiliates knows of the
               occurrence of any of the following, a certificate of the chief
               financial officer of the Borrower (or, if applicable, of the
               ERISA Affiliate) setting forth the details as to such occurrence
               and the action, if any, which the Borrower or ERISA Affiliate is
               required or proposes to take, together with any notices


                                      -31-
<PAGE>
               required or proposed to be given or filed with or by the
               Borrower, an ERISA Affiliate, the Pension Benefit Guaranty
               Corporation, or plan administrator with respect thereto:

                             (A) the establishment or adoption of any PBGC Plan,
                      Multiemployer Plan or Multiple Employer Plan by the
                      Borrower or any ERISA Affiliate on or after the date
                      hereof (a "FUTURE PLAN");

                             (B) the occurrence of an ERISA Event with respect
                      to any Future Plan;

                             (C) the existence of an accumulated funding
                      deficiency with respect to any Future Plan;

                             (D) the making of an application to the Secretary
                      of the Treasury for a waiver or modification of the
                      minimum funding standard (including any required
                      installment payments) or extension of any amortization
                      period under Section 412 of the Code with respect to any
                      Future Plan;

                             (E) the institution of a proceeding pursuant to
                      Section 515 of ERISA to collect delinquent contributions
                      from the Borrower or an ERISA Affiliate with respect to a
                      Future Plan;

                             (F) the occurrence of any "prohibited transaction"
                      as described in Section 406 of ERISA or in Section 4975 of
                      the Code, in connection with any Plan or any trust created
                      thereunder; or

                             (G) the failure to pay when due all amounts that
                      the Borrower or any ERISA Affiliate is required under the
                      terms of each Plan or applicable law to have paid as a
                      contribution to such Plan; and

                      (ii) As soon as possible and in any event within ten days
               from receipt or, if applicable, filing, a complete copy of the
               annual report (Form 5500) of each Plan required to be filed with
               the Internal Revenue Service, copies of any other reports or
               notices which the Borrower or an ERISA Affiliate files with the
               Internal Revenue Service, Pension Benefit Guaranty Corporation or
               the United States Department of Labor or which the Borrower or an
               ERISA Affiliate receives from such Governmental Authority, and
               copies of any notice, complaint or other documentation of any
               pending or threatened lawsuit or claim relating in any respect to
               any Plan established or maintained by the Borrower or an ERISA
               Affiliate or to which the Borrower or an ERISA Affiliate
               contributes which may have a Material Adverse Effect on the
               Borrower or an ERISA Affiliate.

               (i) DELIVERY OF NOTICES FROM SERVICER. Promptly after the receipt
        thereof, a copy of any notice received by the Borrower from the Servicer
        under the Servicing Agreement with respect to a termination or proposed
        termination thereof or a default thereunder.

               (j) DELIVERY OF ENTERPRISE NOTICES. A copy of (i) any notice
        received by FIARC from Enterprise or any other Person under the
        Enterprise Agreement promptly upon receipt thereof and


                                      -32-
<PAGE>
        (ii) any notice FIARC delivers pursuant to Section 3.2(l) of the
        Enterprise Agreement promptly upon the delivery or sending thereof.

               (k) HEDGE POSITION REPORTING. Within thirty (30) days after the
        end of each fiscal quarter of the Borrower (including the last quarter),
        a report of the Borrower's hedge position identifying all hedge
        agreements to which the Borrower is a party.

               (l) NOTICE WITH RESPECT TO CERTAIN ENTERPRISE EVENTS. Promptly
        upon occurrence, notice of any modification or amendment to the
        Enterprise Agreement, any Potential Termination Event under the
        Enterprise Agreement and notice of First Investor's being required to
        accept re-assignment of Enterprise's interest in any uncollected
        Receivables previously sold, transferred and assigned to Enterprise in
        an aggregate amount of $500,000 or more within any 60 day period.

               (m) OTHER INFORMATION. Such other information respecting the
        condition or operations, financial or otherwise, of the Borrower as any
        Bank through the Agent may from time to time reasonably request.

        Section 6.03. TAXES AND LIENS. The Borrower will pay and discharge, or
will cause to be paid and discharged, promptly all taxes, assessments, and
governmental charges or levies imposed upon the Borrower or upon the income of
any Property of the Borrower as well as all claims of any kind (including,
without limitation, claims for labor, materials, supplies, and rent) when due.

        Section 6.04. MAINTENANCE OF PROPERTY. The Borrower will at all times
maintain, preserve, protect, and keep, or cause to be maintained, preserved,
protected, and kept, its Property in good repair, working order, and condition
(ordinary wear and tear excepted) and, from time to time, will make, or cause to
be made, all repairs, renewals, replacements, extensions, additions,
betterments, and improvements to its Property as are appropriate, so that (a)
the Borrower maintains its current line of business, and (b) the business
carried on in connection therewith may be conducted properly and efficiently at
all times.

        Section 6.05. RIGHT OF INSPECTION. The Borrower will permit any officer,
or employee of, or agent designated by, the Agent or any Bank to visit and
inspect any of the Properties of the Borrower, examine the Borrower's corporate
books or the Borrower's or First Investor's financial records, take copies and
extracts therefrom, and discuss the affairs, finances, and accounts of the
Borrower and First Investors with the Borrower's officers or certified public
accountants, all at such reasonable times and as often as the Agent or any Bank
may reasonably desire.

        Section 6.06. PERFORMANCE AND COMPLIANCE WITH RECEIVABLES AND CREDIT
INSURANCE. The Borrower will, at its expense, timely and fully perform and
comply with, or cause to be timely and fully performed and complied with, all
material provisions, covenants and other promises required to be observed by it
under the Receivables, the Receivables Documents and the Credit Insurance.

        Section 6.07. FURTHER ASSURANCES. The Borrower shall deliver to the
Agent within 90 days after the beginning of each calendar year, beginning with
the calendar year 1998, an opinion of independent counsel of the Borrower dated
as of a date during such 90-day period, either (a) stating that, in the opinion
of such counsel, (1) such action has been taken with respect to the recording,
registering, filing, rerecording, re-registering and re-filing of financing
statements, continuation statements or other instruments or documents as is
necessary to preserve and protect the interest of the Agent and the Banks in and
to the Receivables and reciting the details of such action or referring to prior
opinions of counsel in which such details are given, and (2) all financing
statements, continuation statements and any other necessary documents have been
executed and filed that are necessary fully to preserve and protect the
perfected interest of the Agent and the Banks in and to the Receivables, and
reciting the details of such filings or referring to prior opinions of counsel
in which such details are given, or (b) stating that, in the opinion of such
counsel, no such action is necessary to preserve and protect such interest.


                                   ARTICLE VII

                               NEGATIVE COVENANTS

        So long as any Note shall remain unpaid or any Bank shall have any
Commitment hereunder, the Borrower agrees, without the written consent of the
Majority Banks, as follows:

        Section 7.01. LIENS, ETC. The Borrower will not grant, permit, create or
suffer to exist any Lien, upon or with respect to any of its Properties,
including, without limitation, the Receivables, whether now owned or hereafter
acquired, other than Permitted Liens and Liens created under the Security
Agreement and the Escrow Agreement; PROVIDED that, anything in the foregoing or
elsewhere in any Loan Document to the contrary notwithstanding, the Borrower
will not enter into any agreement that (i) prohibits the creation or assumption
of any Lien upon any Property of the Borrower in favor of any Person, including
without limitation the Banks or (ii) requires any obligation of the Borrower to
be secured if any obligation of the Borrower to the Banks is secured in favor of
another Person, including without limitation the Banks.

        Section 7.02. DEBT. The Borrower will not create or suffer to exist any
Debt except as set forth below, all of which shall be "PERMITTED DEBT":

        (a) Debt of the Borrower to the Agent and the Banks and to the Bank
Collateral Agent evidenced by any Loan Document;

        (b) Debt of the Borrower for fees payable to the Servicer under the
Receivables Documents;

        (c) Debt represented by the Distributions on the terms and conditions
set forth in the Security Agreement; and

        (d) Debt of the Borrower under any interest rate swap or other exchange
agreement entered into with NationsBank in a notional amount up to $100,000,000
and which hedges interest payable under this Facility; PROVIDED, that any
portion of such notional amount in excess of the notional amount of this
Facility shall be assigned to and assumed by First Investors.

        (e) Intercompany obligations to First Investors for Borrower's
reasonable net rent allocation, reasonable management fees and dividends
declared.

        Section 7.03. RESTRICTED PAYMENTS. If a Default or Event of Default has
occurred and is continuing, or would exist after the making of any payments
pursuant to this Section 7.03, the Borrower

                                      -33-
<PAGE>
will not declare or make any dividend payment or other distribution of
Properties, cash, rights, obligations, or securities on account of any shares of
any class of capital stock of the Borrower, or purchase, redeem, retire, or
otherwise acquire for value any shares of any class of capital stock of the
Borrower or any warrants, rights, or options to acquire any such shares, now or
hereafter outstanding.

        Section 7.04. MERGERS; CONSOLIDATIONS. The Borrower will not merge or
consolidate with or into, or convey, transfer, lease, or otherwise dispose of
(whether in one transaction or in a series of transactions) any of its assets
(whether now owned or hereafter acquired) other than (i) to pay expenses
incurred in the ordinary course of business, (ii) in respect of the
Distributions, or (iii) the transfer and assignment of Receivables to First
Investors upon payment on the principal balance outstanding on the Notes of an
amount equal to the Purchase Amount.

        Section 7.05. INVESTMENTS, LOANS, AND ADVANCES. Except as provided under
the other Loan Documents and the Receivables Documents, the Borrower will not
make or permit to remain outstanding any Investment, endorse, or otherwise be or
become contingently liable directly or indirectly, in connection with the
obligations, stock, or dividends of, or own, purchase or acquire any stock,
obligations, or securities of, or any other interest in, or make any capital
contribution to, any Person, or otherwise make, incur, create, assume, or suffer
to exist any contingent liability or any Investment of the Borrower to purchase
or acquire any assets.

        Section 7.06. SALE OR OTHER DISPOSITION OF ASSETS. The Borrower will not
sell, assign, lease, transfer or otherwise dispose of (whether in one
transaction or in a series of transactions) any part of its Property (whether
now owned or hereafter acquired) to any Person other than (i) to pay expenses
incurred in the ordinary course of business, (ii) in respect of the
Distributions, or (iii) the transfer and assignment of Receivables to First
Investors upon payment on the principal balance outstanding on the Notes of an
amount equal to the Purchase Amount.

        Section 7.07. USE OF PROCEEDS. The Borrower will not use, nor permit the
use of, all or any portion of any Advance for any purpose except as described in
Section 5.09 hereof.

        Section 7.08. TRANSACTIONS WITH AFFILIATES. Except as provided under the
Loan Documents and the Receivables Documents and except in respect of any
management fee to be paid by the Borrower to First Investors, the Borrower will
not directly or indirectly enter into any transaction with any Affiliate
(including, without limitation, any transaction involving the payment of
management fees or directors' fees to any Affiliate), except for transactions
(including any loans or advances by or to any Affiliate otherwise in compliance
under the Agreement) in good faith, the terms of which are fair and reasonable
to the Borrower, and are at least as favorable as the terms which could be
obtained by the Borrower in a comparable transaction made on an arm's-length
basis between unaffiliated parties.

        Section 7.09. OTHER BUSINESS. The Borrower will not engage in any
business or enterprise or enter into any material transaction other than as
contemplated by the Loan Documents and the Receivables Documents.

        Section 7.10. ISSUANCE OF SHARES. The Borrower will not issue, sell, or
otherwise dispose of any shares of its capital stock or other equity securities,
or rights, warrants, or options to purchase or acquire any shares or equity
securities, other than as otherwise expressly permitted by other Sections of
this Agreement.

                                      -34-
<PAGE>
        Section 7.11. ERISA. The Borrower shall not and shall not permit any
ERISA Affiliate to:

               (a) do any of the following, which in the aggregate would
        reasonably be expected to have a Material Adverse Effect:

                      (i) engage in any transaction which it knows or has reason
               to know could result in a civil penalty assessed pursuant to
               Section 502(i) of ERISA or a tax imposed by Section 4975 of the
               Code;

                      (ii) fail to make any payments when due to any
               Multiemployer Plan that the Borrower or an ERISA Affiliate may be
               required to make under any agreement relating to such
               Multiemployer Plan, or any law pertaining thereto;

                      (iii)  incur withdrawal liability under ERISA to a 
               Multiemployer Plan;

                      (iv) voluntarily terminate or, in the case of a
               "substantial employer" as defined in Section 4001(a)(2) of ERISA,
               withdraw from any Plan if such termination or withdrawal could
               result in the imposition of a Lien on the Borrower or an ERISA
               Affiliate under Section 4068 of ERISA;

                      (v) fail to make any required contribution when due to any
               Plan subject to Section 412(n) of the Code that with the passage
               of time would likely result in a Lien upon the properties or
               assets of the Borrower or an ERISA Affiliate;

                      (vi) adopt any amendment to a Plan the effect of which is
               to increase the "current liability" under the Plan as defined in
               Section 302(d)(7) of ERISA;

                      (vii) act or fail to act, and, as a result thereof, an
               event similar to any of those referred to in clauses (i) to (vi)
               would likely occur under the applicable laws of a foreign
               country; or

               (b) permit the present value of all benefits (irrespective of
        whether vested) under all Plans that have assets less than benefits
        (irrespective of whether vested), to exceed the "current value" as
        defined in Section 3(26) of ERISA of the assets of such Plans by an
        aggregate amount of ten thousand dollars ($10,000.00); or

               (c) permit the adoption, implementation or amendment of any
        unfunded deferred compensation agreement or other arrangement of a
        similar nature irrespective of whether subject to the funding
        requirements of ERISA which could reasonably be expected to have a
        Material Adverse Effect.

        Section 7.12. ACQUISITIONS. Except as provided under the Receivables
Documents, the Borrower will not acquire by purchase, lease (including, without
limitation, assumption of any lease) or merger any of the assets, Property,
capital stock or other equity interests of any other Person.

                                      -35-
<PAGE>
        Section 7.13. CERTAIN FINANCIAL TESTS.

        (a) The Borrower will not permit the ratio of Earnings Before Interest,
Fees and Distributions to the sum of Loan Interest Expense PLUS Fee Expense, as
determined as of each Determination Date for the immediately preceding three
Collection Periods, to be less than 1.70 to 1.00.

        (b) The Borrower will not permit the Credit Loss Percentage, as
determined as of each Determination Date, to exceed 5.0%.

        (c) The Borrower will not permit the number of Delinquent Receivables to
exceed 8.5% of the average number of Receivables as determined as of each
Determination Date for the immediately preceding three Collection Periods.

        Section 7.14. EXTENSION OR AMENDMENT OF RECEIVABLES AND OTHER DOCUMENTS.
The Borrower will not, and will not permit the Servicer to, (a) extend, amend or
otherwise modify the terms of (i) any Receivable (PROVIDED that an extension,
amendment or modification permitted under Section 4.02 of the Servicing
Agreement shall not be prohibited by this Section 7.14), (ii) the Credit
Insurance, (iii) the Receivables Documents, or (iv) the Borrower's Certificate
of Incorporation or Bylaws.

        Section 7.15. LETTER OF GUARANTY. The Borrower will not permit the
aggregate Principal Balance of the Receivables with respect to which the
Borrower has accepted a guaranty of delivery of the certificate of title from an
Originator to exceed $250,000 at any one time.


                                  ARTICLE VIII

                                EVENTS OF DEFAULT

        Section 8.01. EVENTS OF DEFAULT. If any of the following events (each an
"EVENT OF DEFAULT") shall occur:

               (a)    The Borrower shall fail to pay any principal of any Note 
        when the same becomes due and payable; or

               (b) The Borrower shall fail to pay interest on any Note or fees
        or other amounts due under the Note or this Agreement or any other Loan
        Document, or First Investors shall fail to pay any amounts due under the
        Pledge Agreement, when the same becomes due and payable and such failure
        shall remain unremedied for three days; or

               (c) Any representation or warranty made by the Borrower (or any
        of its officers) under or in connection with any Loan Document or the
        Receivables Documents, or by First Investors (or any of its officers)
        under or in connection with the Pledge Agreement, shall prove to have
        been incorrect in any material respect when made; or

               (d) The Borrower shall fail to perform or observe any term,
        covenant or agreement contained in Section 6.02 or in Article VII; or

                                      -36-
<PAGE>
               (e) The Borrower shall fail to perform or observe any term,
        covenant or agreement contained in any Loan Document (other than those
        set forth in (a), (b), (c) and (d) above) or the Receivables Documents
        on its part to be performed or observed, or First Investors shall fail
        to perform or observe any term, covenant, or agreement contained in the
        Pledge Agreement on its part to be performed or observed, if such
        failure shall remain unremedied for thirty (30) days after the
        occurrence of such event; or

               (f) The Borrower shall fail to pay any principal of or premium or
        interest on any Debt which is outstanding in a principal amount of at
        least $10,000 in the aggregate when the same becomes due and payable
        (whether by scheduled maturity, required prepayment, acceleration,
        demand or otherwise), and such failure shall continue after the
        applicable grace period, if any, specified in the agreement or
        instrument relating to such Debt; or any other event constituting a
        default (however defined) shall occur or condition shall exist under any
        agreement or instrument relating to any such Debt and shall continue
        after the applicable grace period, if any, specified in such agreement
        or instrument; or

               (g) The Borrower shall generally not pay its debts as such debts
        become due, or shall admit in writing its inability to pay its debts
        generally, or shall make a general assignment for the benefit of
        creditors; or any proceeding shall be instituted by or against the
        Borrower seeking to adjudicate it a bankrupt or insolvent, or seeking
        liquidation, winding up, reorganization, arrangement, adjustment,
        protection, relief, or composition of it or its debts under any law
        relating to bankruptcy, insolvency or reorganization or relief of
        debtors, or seeking the entry of an order for relief or the appointment
        of a receiver, trustee, custodian or other similar official for it or
        for any substantial part of its property and, in the case of any such
        proceeding instituted against it (but not instituted by it), either such
        proceeding shall remain undismissed or unstayed for a period of 30 days,
        or any of the actions sought in such proceeding (including, without
        limitation, the entry of an order for relief against, or the appointment
        of a receiver, trustee, custodian or other similar official for, it or
        for any substantial part of its property) shall occur; or the Borrower
        shall take any corporate action to authorize any of the actions set
        forth above in this subsection (g); or

               (h) Any final judgment or order for the payment of money which,
        individually or in the aggregate, shall be in excess of $10,000 at any
        time, shall be rendered against the Borrower and either (i) enforcement
        proceedings shall have been commenced by any creditor upon such judgment
        or order or (ii) there shall be any period of thirty (30) consecutive
        days during which a stay of enforcement of such judgment or order, by
        reason of a pending appeal or otherwise, shall not be in effect; or

               (i) The balance in the Collateral Account for any two consecutive
        Distribution Dates (after making any Distributions therefrom) shall be
        less than the Specified Collateral Account Balance; or

               (j)    The credit quality of any of the providers of the ALPI 
        Insurance, the GAP Insurance, or the VSI Insurance shall at any time be 
        rated as less than "A-" by A. M. Best Company; or

               (k) Uninsured Credit Losses determined as of the last day of each
        month during this Agreement for the twelve-month period ending on such
        date shall exceed $50,000; PROVIDED that


                                      -37-
<PAGE>
        if First Investors shall have repurchased any Receivable for the amount
        equal to the outstanding Purchase Amount, such Receivable shall not be
        included as an Uninsured Credit Loss for purposes of this calculation;
        or

               (l) A material breach (i) by the Servicer of its obligations
        under the Servicing Agreement, (ii) by First Investors of its
        obligations under (A) the Purchase Agreement, (B) any interest rate swap
        or other exchange agreement which hedges interest payable under the
        Enterprise Agreement, or (C) any interest rate cap on the interest rate
        payable by FIARC under the Enterprise Agreement which offsets a counter
        position of FIARC under such interest rate position, (iii) by the Bank
        Collateral Agent of its obligations under the Loan Documents, or (iv) by
        the provider of the ALPI Insurance, the GAP Insurance or the VSI
        Insurance under such Credit Insurance shall occur and be continuing; or

               (m) First Investors shall cease to own a majority of the issued
        and outstanding stock of the Borrower; or

               (n) With respect to any Future Plan (as such term is defined in
        Section 6.02(h) hereof), other than a Multiemployer Plan within the
        meaning of Section 4001(a)(3) of ERISA, (1) such Future Plan shall fail
        to satisfy the minimum funding standard or a waiver of such standard or
        extension of any amortization period is sought under Section 412 of the
        Code; (2) such Future Plan is or is proposed to be terminated and as a
        result thereof liability in excess of $1,000,000 can be asserted under
        Title IV of ERISA as against the Borrower or ERISA Affiliate; (3) such
        Future Plan shall have an unfunded current liability in excess of
        $1,000,000; or (4) there has been a withdrawal from any such Future Plan
        and as a result liability in excess of $1,000,000 can be asserted under
        Section 4062(e) or 4063 of ERISA against the Borrower or any ERISA
        Affiliate; or, with respect to any Future Plan that is a Multiemployer
        Plan under Section 4001(a)(3) of ERISA, such Future Plan is insolvent or
        in reorganization or the Borrower or an ERISA Affiliate has withdrawn,
        or proposes to withdraw, either totally or partially, from such Future
        Plan and, in any case, in the opinion of the Agent, the Borrower or its
        ERISA Affiliate might reasonably be anticipated to incur a liability
        which would have a Material Adverse Effect on the business, operations,
        conditions (financial or otherwise) or prospects of the Borrower or
        ERISA Affiliates; or with respect to any Plan other than a Future Plan,
        the Borrower or its ERISA Affiliate could reasonably be anticipated to
        incur a liability which would have a Material Adverse Effect on the
        business, operations or conditions (financial or otherwise) or prospects
        of the Borrower or its ERISA Affiliates; or

               (o) The Agent shall have received notice of cancellation of any
        of the Credit Insurance and such Credit Insurance has not been
        reinstated or replaced in form and substance satisfactory to the Agent
        within a period of 30 days after receipt of such notice; or

               (p) (i) The Servicer's obligations shall have been terminated
        pursuant to Section 8.01 of the Servicing Agreement and a successor
        servicer shall not have been appointed and accepted such appointment
        within 45 days of the Servicer's receipt of notice of termination, (ii)
        the Servicer shall have terminated its obligations pursuant to Section
        8.02 of the Servicing Agreement, or (iii) the Servicer's obligation to
        accept new Receivables shall have terminated pursuant to Section 9.02(a)
        or (b) of the Servicing Agreement and a successor servicer satisfactory
        to the Agent shall not have been appointed and accepted such appointment
        prior to the effective date of such termination; or


                                      -38-
<PAGE>
               (q) Aggregate claims submitted under the VSI Insurance and GAP
        Insurance determined as of the last day of each month during this
        Agreement for the twelve-month period ending on such date shall exceed
        $750,000; or

               (r) the occurrence of a "Termination Event", other than with
        respect to the events specified in Section 6.1(f), (j), (t), or (u) of
        the Enterprise Agreement;

then, and in any such event, the Agent (i) shall send notice of the occurrence
of such Default or Event of Default to the Borrower, the Bank Collateral Agent
and the Escrow Agent, (ii) shall at the request, or may with the consent, of the
Majority Banks, by notice to the Borrower, declare the obligation of each Bank
to make Advances to be terminated, whereupon the same shall forthwith terminate,
and (iii) shall at the request, or may with the consent, of the Majority Banks,
by notice to the Borrower, declare the Notes, all interest thereon and all other
amounts payable under this Agreement to be forthwith due and payable, whereupon
the Notes, all such interest and all such amounts shall become and be forthwith
due and payable, without presentment, demand, protest or further notice of any
kind, all of which are hereby expressly waived by the Borrower; PROVIDED,
HOWEVER, that in the event of an actual or deemed entry of an order for relief
with respect to the Borrower under the United States Bankruptcy Code, (A) the
obligation of each Bank to make Advances shall automatically be terminated and
(B) the Notes, all such interest and all such amounts shall automatically become
and be due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Borrower.


                                   ARTICLE IX

                                    THE AGENT

        Section 9.01. AUTHORIZATION AND ACTION. Each Bank hereby appoints and
authorizes the Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement as are delegated to the Agent by the terms
hereof, together with such powers as are reasonably incidental thereto. As to
any matters not expressly provided for by this Agreement (including, without
limitation, enforcement or collection of the Notes), the Agent shall not be
required to exercise any discretion or take any action, but shall be required to
act or to refrain from acting (and shall be fully protected in so acting or
refraining from acting) upon the instructions of the Majority Banks, and such
instructions shall be binding upon all Banks and all holders of Notes; PROVIDED,
HOWEVER, that the Agent shall not be required to take any action which exposes
the Agent to personal liability or which is contrary to this Agreement or
applicable law. The Agent agrees to give to each Bank prompt notice of each
notice given to it by the Borrower pursuant to the terms of this Agreement.

        Section 9.02. AGENT'S RELIANCE, ETC.. Neither the Agent nor any of its
directors, officers, agents or employees shall be liable for any action taken or
omitted to be taken by it or them under or in connection with this Agreement,
except for its or their own gross negligence or willful misconduct. Without
limitation of the generality of the foregoing, the Agent: (i) may treat the
payee of any Note as the holder thereof until the Agent receives written notice
of the assignment or transfer thereof signed by such payee and including the
agreement of the assignee or transferee to be bound hereby as it would have been
if it had been an original Bank party hereto, in form satisfactory to the Agent;
(ii) may consult with legal counsel (including counsel for the Borrower),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (iii) makes
no warranty or


                                      -39-
<PAGE>
representation to any Bank and shall not be responsible to any Bank for any
statements, warranties or representations (whether written or oral) made in or
in connection with this Agreement; (iv) shall not have any duty to ascertain or
to inquire as to the performance or observance of any of the terms, covenants or
conditions of this Agreement on the part of the Borrower or to inspect the
property (including the books and records) of the Borrower; (v) shall not be
responsible to any Bank for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement or any other
instrument or document furnished pursuant hereto; and (vi) shall incur no
liability under or in respect of this Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopier,
telegram, cable or telex) believed by it to be genuine and signed or sent by the
proper party or parties.

        Section 9.03. NATIONSBANK AND AFFILIATES. With respect to its
Commitment, the Advances made by it and the Note issued to it, NationsBank shall
have the same rights and powers under this Agreement as any other Bank and may
exercise the same as though it were not the Agent; and the term "Bank" or
"Banks" shall, unless otherwise expressly indicated, include NationsBank in its
individual capacity. NationsBank and its Affiliates may accept deposits from,
lend money to, act as trustee under indentures of, and generally engage in any
kind of business with, the Borrower and any Person who may do business with or
own securities of the Borrower, all as if NationsBank were not the Agent and
without any duty to account therefor to the Banks.

        Section 9.04. BANK CREDIT DECISION. Each Bank acknowledges that it has,
independently and without reliance upon the Agent or any other Bank and based on
the financial statements referred to in Sections 5.07 and 6.02 and such other
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Bank also acknowledges
that it will, independently and without reliance upon the Agent or any other
Bank and based on such documents and information as it shall deem appropriate at
the time, continue to make its own credit decisions in taking or not taking
action under each Loan Document. The Agent shall not be required to keep itself
informed as to the performance or observance by the Borrower of any Loan
Document or to inspect the Properties or books of the Borrower. Except for
notices, reports, and other documents and information expressly required to be
furnished to the Banks by the Agent hereunder, the Agent shall not have any duty
or responsibility to provide any Bank with any credit or other information
concerning the affairs, financial condition, or business of the Borrower.

        Section 9.05. INDEMNIFICATION. Notwithstanding anything to the contrary
herein contained, the Agent shall be fully justified in failing or refusing to
take any action hereunder unless it shall first be indemnified to its
satisfaction by the Banks against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses, and
disbursements of any kind or nature whatsoever which may be imposed on, incurred
by or asserted against the Agent in any way relating to or arising out of its
taking or continuing to take any action. Each Bank agrees to indemnify the Agent
(to the extent not reimbursed by the Borrower), according to such Bank's
Commitments, from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses, and
disbursements of any kind or nature whatsoever which may be imposed on, incurred
by, or asserted against the Agent in any way relating to or arising out of any
Loan Document or any action taken or omitted by the Agent under any Loan
Document; PROVIDED that no Bank shall be liable for any portion of such
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, expenses, or disbursements resulting from the gross negligence or willful
misconduct of the Person being indemnified; and PROVIDED FURTHER that it is the
intention of each Bank to indemnify the Agent against the consequences of the
Agent's own negligence, whether such negligence be sole, joint, or concurrent,
active or passive. Without limitation of the foregoing, each Bank agrees to
reimburse the Agent promptly upon demand for


                                      -40-
<PAGE>
its ratable share of any out-of-pocket expenses (including attorneys' fees)
incurred by the Agent in connection with the preparation, administration, or
enforcement of, or legal advice in respect of rights or responsibilities under,
any Loan Document, to the extent that the Agent is not reimbursed for such
expenses by the Borrower.

        Section 9.06. SUCCESSOR AGENT. The Agent may resign at any time by
giving written notice thereof to the Banks and the Borrower and may be removed
at any time with cause by the Majority Banks. Upon any such resignation or
removal, the Majority Banks shall have the right to appoint a successor Agent.
If no successor Agent shall have been so appointed by the Majority Banks, and
shall have accepted such appointment, within thirty (30) days after the retiring
Agent's giving of notice of resignation or the Majority Banks' removal of the
retiring Agent, then the retiring Agent may, on behalf of the Banks, appoint a
successor Agent, which shall be a commercial bank organized under the laws of
the United States of America or of any state thereof and having a combined
capital and surplus of at least $500,000,000. Upon the acceptance of any
appointment as Agent hereunder by a successor Agent, such successor Agent shall
thereupon succeed to and become vested with all the rights, powers, privileges
and duties of the retiring Agent, and the retiring Agent shall be discharged
from its duties and obligations under this Agreement. After any retiring Agent's
resignation or removal hereunder as Agent, the provisions of this Article IX
shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Agent under this Agreement.

        Section 9.07. AGENT'S RELIANCE. The Borrower shall notify the Agent in
writing of the names of its officers and employees authorized to request an
Advance on behalf of the Borrower and shall provide the Agent with a specimen
signature of each such officer or employee. The Agent shall be entitled to rely
conclusively on such officer's or employee's authority to request an Advance on
behalf of the Borrower until the Agent receives written notice from the Borrower
to the contrary. The Agent shall have no duty to verify the authenticity of the
signature appearing on any Notice of Borrowing, and, with respect to any oral
request for an Advance, the Agent shall have no duty to verify the identity of
any Person representing himself as one of the officers or employees authorized
to make such request on behalf of the Borrower. Neither the Agent nor any Bank
shall incur any liability to the Borrower in acting upon any telephonic notice
referred to above which the Agent or such Bank believes in good faith to have
been given by a duly authorized officer or other Person authorized to borrow on
behalf of the Borrower or for otherwise acting in good faith.

        Section 9.08. DEFAULTS. The Agent shall not be deemed to have knowledge
of the occurrence of a Default (other than the nonpayment of principal of or
interest hereunder or of any fees payable hereunder) unless the Agent has
received notice from a Bank or the Borrower specifying such Default. In the
event that the Agent receives such a notice of the occurrence of a Default, the
Agent shall give prompt notice thereof to the Banks (and shall give each Bank
prompt notice of each such nonpayment). The Agent shall (subject to Section
8.01) take such action with respect to such Default, PROVIDED that, unless and
until the Agent shall have received the directions referred to in Section 8.01,
the Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such Default as it shall deem advisable and
in the best interest of the Banks.

                                      -41-
<PAGE>
                                    ARTICLE X

                                  MISCELLANEOUS

        Section 10.01.AMENDMENTS, ETC. No amendment or waiver of any provision
of this Agreement or the Notes, nor consent to any departure by the Borrower
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Majority Banks, and then such waiver or consent shall be
effective only in the specific instances and for the specific purpose for which
given; PROVIDED, HOWEVER, that no amendment, waiver or consent shall, unless in
writing and signed by all the Banks, do any of the following: (a) waive or amend
any of the conditions specified in Sections 4.01 and 4.02, (b) change the
definition of "Commitment", increase the Commitments of the Banks or subject the
Banks to any additional obligations, (c) reduce the principal of, or interest
on, the Notes or any fees or other amounts payable hereunder, (d) postpone or
extend the Termination Date or any date fixed for any payment of principal of,
or interest on, the Notes or any fees or other amounts payable hereunder, (e)
change the percentage of the Commitments or of the aggregate unpaid principal
amount of the Notes, or the number of Banks, which shall be required for the
Banks or any of them to take any action hereunder, (f) change the requirements
hereunder to exercise any waiver of a payment default or payment amount, (g)
release any Collateral, except with respect to sales as permitted by the
Security Agreement and for repurchases by First Investors pursuant to the terms
of the Purchase Agreement or (h) amend this Section 10.01; and PROVIDED FURTHER
that no amendment, waiver or consent shall, unless in writing and signed by the
Agent in addition to the Banks required above to take such action, affect the
rights or duties of the Agent under this Agreement or any Note.

        Section 10.02.NOTICES, ETC. All notices and other communications
provided for hereunder shall be in writing (including by telex or facsimile
transmission) and shall be effective when actually delivered, or in the case of
telex notice, when sent, answerback received, or in the case of facsimile
transmission, when received and telephonically confirmed, addressed as follows:
if to the Borrower, at its address at 675 Bering, Suite 110, Houston, Texas
77057, Attention: President, Telephone: (713) 977-2600, Facsimile: (713)
972-2630; if to any Bank, at its Domestic Lending Office as specified opposite
its name on the signature page hereof; and if to the Agent, at its address at
700 Louisiana, Houston, Texas 77002, Attention: Mr. Billy B. Greer, Telephone:
(713) 247-6679, Facsimile: (713) 247-6719; PROVIDED, HOWEVER, that any Notices
of Borrowing or Notices of Interest Conversion shall be sent to the Agent at its
address at 901 Main Street, Dallas, Texas 75201, Attention: Ms. Renita Cummings;
with copies to the Agent at 700 Louisiana, Houston, Texas 77002, Attention: Mr.
Billy B. Greer; or, as to the Borrower, any Bank or the Agent, at such other
address as shall be designated by such party in a written notice to the other
parties.

        Section 10.03.NO WAIVER; REMEDIES. No failure on the part of any Bank or
the Agent to exercise, and no delay in exercising, any right under any Loan
Document shall operate as a waiver thereof; nor shall any single or partial
exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

        Section 10.04.COSTS, EXPENSES AND TAXES. The Borrower agrees to pay on
demand all costs and expenses in connection with the preparation, execution,
delivery, administration, modification and amendment of the Loan Documents and
the other documents to be delivered under the Loan Documents, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the
Agent with respect thereto and with respect to advising the Agent as to its
rights and responsibilities under the


                                      -42-
<PAGE>
Loan Documents. The Borrower further agrees to pay on demand all costs and
expenses, if any (including, without limitation, reasonable counsel fees and
expenses), in connection with the enforcement (whether through negotiations,
legal proceedings or otherwise) of the Loan Documents and the other documents to
be delivered under the Loan Documents, including, without limitation, reasonable
counsel fees and expenses in connection with the enforcement of rights under
this Section 10.04.

        Section 10.05.RIGHT OF SET-OFF. Upon (i) the occurrence and during the
continuance of any Event of Default and (ii) the making of the request or the
granting of the consent specified by Section 8.01 to authorize the Agent to
declare the Notes due and payable pursuant to the provisions of Section 8.01,
each Bank is hereby authorized at any time and from time to time, to the fullest
extent permitted by law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Bank to or for the credit or the account
of the Borrower against any and all of the obligations of the Borrower now or
hereafter existing under any Loan Document, whether or not such Bank shall have
made any demand under this Agreement or such Note and although such obligations
may be unmatured. Each Bank agrees promptly to notify the Borrower after any
such set-off and application made by such Bank, PROVIDED that the failure to
give such notice shall not affect the validity of such set-off and application.
The rights of each Bank under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) which such
Bank may have.

        Section 10.06.BINDING EFFECT. This Agreement shall become effective when
it shall have been executed by the Borrower and the Agent and when the Agent
shall have been notified by each Bank that such Bank has executed it and
thereafter shall be binding upon and inure to the benefit of the Borrower, the
Agent and each Bank and their respective successors and assigns, except that the
Borrower shall not have the right to assign its rights hereunder or any interest
herein without the prior written consent of the Banks.

        Section 10.07.ASSIGNMENTS AND PARTICIPATIONS. (a) Subject to the prior
written consent of the Agent and the Borrower, such consent not to be
unreasonably withheld, each Bank may assign to any financial institution (the
"ASSIGNEE") all or a portion of its rights and obligations under this Agreement
(including, without limitation, all or a portion of its Commitments and the Note
held by it); PROVIDED, HOWEVER, that the parties to each such assignment shall
execute and deliver to the Agent, for its acceptance and recording in the
Register, an Assignment and Acceptance Agreement in form and substance
satisfactory to the Agent (the "ASSIGNMENT AND ACCEPTANCE"), together with any
Note subject to such assignment and a processing fee of $2,500; and FURTHER
PROVIDED HOWEVER, that (i) each such assignment shall be of a constant, and not
a varying, percentage of all of the assigning Bank's rights and obligations
under this Agreement, and (ii) the amount of the Commitments so assigned shall
equal or exceed the lesser of (x) $10,000,000, or (y) the remaining Commitments
held by the assigning Bank. Upon such execution, delivery, acceptance, and
recordation by the Agent of such Assignment and Acceptance, from and after the
effective date specified in each Assignment and Acceptance, which effective date
shall be the date on which such Assignment and Acceptance is accepted by the
Agent, (A) the Assignee thereunder shall be a party hereto and, to the extent
that rights and obligations hereunder have been assigned to it pursuant to such
Assignment and Acceptance, have the rights and obligations of a Bank under the
Loan Documents, and (B) the Bank assignor thereunder shall, to the extent that
rights and obligations hereunder have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Loan Documents (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Bank's rights
and obligations under the Loan Documents, such Bank shall cease to be a party
thereto).

                                      -43-
<PAGE>
        (b) By executing and delivering an Assignment and Acceptance, the Bank
assignor thereunder and the Assignee (by execution and delivery of the
Assignment and Acceptance pursuant to this Section 10.07) confirm to and agree
with each other and the other parties hereto as follows: (i) other than as
provided in such Assignment and Acceptance, such assigning Bank makes no
representation or warranty and assumes no responsibility with respect to any
statements, warranties, or representations made in or in connection with any
Loan Document or the execution, legality, validity, enforceability, genuineness,
sufficiency, or value of any Loan Document or any other instrument or document
furnished pursuant thereto; (ii) such assigning Bank makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of the Borrower or the performance or observance by the Borrower of any of its
respective obligations under any Loan Document or any other instrument or
document furnished pursuant thereto; (iii) such Assignee confirms that it has
received a copy of the Loan Documents, together with copies of the financial
statements referred to in Section 5.07 and such other documents and information
as it has deemed appropriate to make its own credit analysis and decision to
enter into such Assignment and Acceptance; (iv) such Assignee, independently and
without reliance upon the Agent, such assigning Bank, or any Bank and based on
such documents and information as it shall deem appropriate at the time, will
continue to make its own credit decisions in taking or not taking action under
this Agreement; (v) such Assignee appoints and authorizes the Agent to take such
action as agent on its behalf and to exercise such powers under any Loan
Document as are delegated to the Agent by the terms thereof, together with such
powers as are reasonably incidental thereto; and (vi) such Assignee agrees that
it will perform in accordance with their terms all of the obligations which by
the terms of any Loan Document are required to be performed by it as a Bank.

        (c) The Agent shall maintain at its address referred to in Section 10.02
a copy of each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Banks and the
Commitment of, and principal amount of the Borrowings owing to, each Bank from
time to time (the "REGISTER"). The entries in the Register shall be conclusive
and binding for all purposes, absent manifest error, and the Borrower, the
Agent, and the Banks may treat each Person whose name is recorded in the
Register as a Bank hereunder for all purposes of the Loan Documents. The
Register shall be available for inspection by the Borrower or any Bank at any
reasonable time and from time to time upon reasonable prior notice.

        (d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Bank, together with any Note subject to such assignment and a
processing fee of $2,500, the Agent, if such Assignment and Acceptance has been
completed shall (i) accept such Assignment and Acceptance; (ii) record the
information contained therein in the Register; and (iii) give prompt notice
thereof to the Borrower. Simultaneously upon its receipt of such notice, the
Borrower at its own expense, shall execute and deliver to the Agent in exchange
for each surrendered Note a new Note payable to the order of such Assignee in an
amount equal to the Commitment assumed by it pursuant to such Assignment and
Acceptance and, if the assigning Bank has retained Commitments hereunder, new
Notes payable to the order of the assigning Bank in an amount equal to the
Commitments retained by it hereunder. The new Notes shall be in an aggregate
principal amount equal to the aggregate principal amount of the surrendered
Notes, shall be dated the effective date of such Assignment and Acceptance and
shall otherwise be in substantially the form of EXHIBIT F. Upon receipt by the
Agent of each such new Note conforming to the requirements set forth in the
preceding sentences, the Agent shall return to the Borrower each such
surrendered Note marked to show that each such surrendered Note has been
replaced, renewed, and extended by such new Note.

                                      -44-
<PAGE>
        (e) Each Bank may sell participations to one or more financial
institutions in or to all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Commitments
and the Notes held by it), PROVIDED, HOWEVER, that an agreement in respect of a
participation hereunder may not restrict such Bank's voting rights hereunder,
other than in respect of a change in the principal of and interest on a Note,
the Collateral securing the Note and the maturity date of each such Note. A
participant holding an interest in a Note shall be entitled to the benefits of
Sections 2.07, 2.10, 3.01 and 3.03 of this Agreement; PROVIDED, FURTHER, that no
participant shall be entitled to recover under the aforedescribed provisions an
amount in excess of the proportionate share which such participant holds of the
original aggregate principal amount hereunder to which the selling Bank would
otherwise have been entitled.

        Section 10.08.LIMITATION ON AGREEMENTS. (a) All agreements between the
Borrower, the Agent, or any Bank, whether now existing or hereafter arising and
whether written or oral, are hereby expressly limited so that in no contingency
or event whatsoever, whether by reason of demand being made in respect of an
amount due under any Loan Document or otherwise, shall the amount paid, or
agreed to be paid, to the Agent or any Bank for the use, forbearance, or
detention of the money to be loaned under this Agreement, the Notes or any other
Loan Document or otherwise or for the payment or performance of any covenant or
obligation contained herein or in any other Loan Document exceed the Highest
Lawful Rate. If, as a result of any circumstances whatsoever, fulfillment of any
provision hereof or of any of such documents, at the time performance of such
provision shall be due, shall involve transcending the limit of validity
prescribed by applicable usury law, then, IPSO FACTO, the obligation to be
fulfilled shall be reduced to the limit of such validity, and if, from any such
circumstance, the Agent or any Bank shall ever receive interest or anything
which might be deemed interest under applicable law which would exceed the
Highest Lawful Rate, such amount which would be excessive interest shall be
applied to the reduction of the principal amount owing on account of such Bank's
Note or the amounts owing on other obligations of the Borrower to the Agent or
any Bank under any Loan Document and not to the payment of interest, or if such
excessive interest exceeds the unpaid principal balance of any Note and the
amounts owing on other obligations of the Borrower to the Agent or any Bank
under any Loan Document, as the case may be, such excess shall be refunded to
the Borrower. All sums paid or agreed to be paid to the Agent or any Bank for
the use, forbearance, or detention of the indebtedness of the Borrower to the
Agent or any Bank shall, to the extent permitted by applicable law, be
amortized, prorated, allocated, and spread throughout the full term of such
indebtedness until payment in full of the principal (including the period of any
renewal or extension thereof) so that the interest on account of such
indebtedness shall not exceed the Highest Lawful Rate. Notwithstanding anything
to the contrary contained in any Loan Document, it is understood and agreed that
if at any time the rate of interest which accrues on the outstanding principal
balance of any Note shall exceed the Highest Lawful Rate, the rate of interest
which accrues on the outstanding principal balance of any Note shall be limited
to the Highest Lawful Rate, but any subsequent reductions in the rate of
interest which accrues on the outstanding principal balance of any Note shall
not reduce the rate of interest which accrues on the outstanding principal
balance of any Note below the Highest Lawful Rate until the total amount of
interest accrued on the outstanding principal balance of any Note equals the
amount of interest which would have accrued if such interest rate had at all
times been in effect. The terms and provisions of this Section 10.08 shall
control and supersede every other provision of all Loan Documents.

        (b) The Agent, the Banks and the Borrower agree that (i) if Article
5069-1.04 of the Texas Revised Civil Statutes Annotated, as amended, is
applicable to the determination of the Highest Lawful Rate, the indicated rate
ceiling computed from time to time pursuant to Section (a) of such Article shall
apply, PROVIDED that, to the extent permitted by such Article, the Agent may
from time to time by notice

                                      -45-
<PAGE>
to the Borrower revise the election of such interest rate ceiling as such
ceiling affects the then current or future balances of the Advances; and (ii)
the provisions of Chapter 15 of Title 79 of the Texas Revised Civil Statutes
Annotated, as amended, shall not apply to this Agreement or any Note.

        Section 10.09.SEVERABILITY. In case any one or more of the provisions
contained in any Loan Document or in any instrument contemplated thereby, or any
application thereof, shall be invalid, illegal, or unenforceable in any respect,
the validity, legality, and enforceability of the remaining provisions contained
therein, and any other application thereof, shall not in any way be affected or
impaired thereby. Each covenant contained in any Loan Document shall be
construed (absent an express contrary provision herein) as being independent of
each other covenant contained therein, and compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with one or more other covenants.

        Section 10.10.GOVERNING LAW. This Agreement and the Notes shall be
governed by, and construed in accordance with, the laws of the State of Texas.

        Section 10.11.SUBMISSION TO JURISDICTION; WAIVERS.  THE BORROWER
IRREVOCABLY AND UNCONDITIONALLY:

        (a) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR FOR
RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE
NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF TEXAS, THE
COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF TEXAS, AND
APPELLATE COURTS FROM ANY THEREOF;

        (b) WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE
OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH PROCEEDING WAS
BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME;

        (c) AGREES THAT SERVICE OF PROCESS IN ANY SUCH LEGAL ACTION OR
PROCEEDING MAY BE EFFECTED BY MAILING OF A COPY THEREOF (BY REGISTERED OR
CERTIFIED MAIL OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL POSTAGE PREPAID) TO THE
BORROWER AT THE ADDRESS SPECIFIED IN SECTION 10.02 OR AT SUCH OTHER ADDRESS OF
WHICH THE AGENT OR ANY BANK SHALL HAVE BEEN NOTIFIED IN WRITING PURSUANT TO
SECTION 10.02.

        (d) NOTWITHSTANDING THE FOREGOING, NOTHING HEREIN SHALL IN ANY WAY
AFFECT THE RIGHT OF THE AGENT OR ANY BANK OR THE BORROWER TO BRING ANY ACTION
ARISING OUT OF OR RELATING TO THE NOTES OR THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT IN ANY COMPETENT COURT ELSEWHERE HAVING JURISDICTION OVER THE BORROWER,
THE AGENT OR ANY BANK, AS THE CASE MAY BE, OR ITS PROPERTY.

        Section 10.12.WAIVER OF JURY TRIAL.  EACH OF THE BORROWER, THE AGENT AND
THE BANKS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY

                                      -46-
<PAGE>
IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

        Section 10.13.EXECUTION IN COUNTERPARTS. This Agreement may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

        Section 10.14.NO INSOLVENCY PETITION AGAINST BORROWER. Each of the Agent
and the Banks hereby covenants and agrees that, prior to the date which is one
year and one day after the payment in full of the Notes and termination of the
Commitments, it will not institute against, or join any other Person in
instituting against, the Borrower any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any federal or
state bankruptcy or similar law. This Section 10.14 shall survive the
termination of this Agreement.

        Section 10.15.INDEMNIFICATION. The Borrower shall indemnify the Agent,
the Banks and each affiliate thereof and their respective directors,
stockholders, officers, partners, employees, agents, attorneys, consultants,
representatives, successors, transferees and assignees from, and hold each of
them harmless against, any and all losses, liabilities, claims or damages to
which any of them may become subject, as a result of the existence, performance
or enforcement of this Agreement, the other Loan Documents and the transactions
contemplated thereby, the Receivables Documents, the Commitments or the
Advances, including without limitation such losses, liabilities, claims or
damages arising out of or resulting from any actual or proposed use by the
Borrower of the proceeds of any extension of credit by any Bank hereunder or
breach by the Borrower of this Agreement or any other Loan Document or breach by
First Investors of the Pledge Agreement or breach by the Servicer of the
Servicing Agreement or from any investigation, litigation or other proceeding
(including any threatened investigation or proceeding) relating to the
foregoing, and the Borrower shall reimburse the Agent, and each Bank, and each
Affiliate thereof and their respective directors, stockholders, officers,
partners, employees, agents, attorneys, consultants, representatives,
successors, transferees and assignees, upon demand for any reasonable expenses
(including reasonable legal fees) incurred in connection with any such
investigation or proceeding, regardless of whether resulting from the sole,
concurrent or comparative negligence of the indemnified Person, but excluding
any such losses, liabilities, claims damages or expenses incurred by such Person
by reason of the gross negligence or willful misconduct of such Person, PROVIDED
that it is the intention of the Borrower to indemnify the indemnified Person
against the consequences of its own negligence.

        Section 10.16.SERVICING. In the event of a Servicer Event of Default (as
defined in the Servicing Agreement) pursuant to Section 8.01 of the Servicing
Agreement, the Borrower shall upon the written direction of the Agent, or may
with the consent of the Agent, exercise the Borrower's rights of termination
thereunder. The Agent shall also have the right to remove the Servicer for
cause, which shall include the material breach of any obligation or covenant
under the Servicing Agreement. Upon termination of the Servicer pursuant to
either Section 8.01 or Section 8.02 of the Servicing Agreement, the Borrower,
acting upon the written direction of the Agent, shall appoint a successor
Servicer and enter into a servicing agreement in form and substance acceptable
to the Agent, with such successor Servicer acceptable to the Agent at such time.

        Section 10.17.FINAL AGREEMENT.  THIS WRITTEN AGREEMENT AND THE NOTES
AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE


                                      -47-
<PAGE>
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.

                                      -48-
<PAGE>
        IN WITNESS WHEREOF, the parties hereto, by their officers duly
authorized, have executed this Agreement as of the date first above written.

                                        F.I.R.C., INC., a Delaware corporation



                                            By:TOMMY A. MOORE, JR.
                                            Tommy A. Moore, Jr.
                                            President



Note Face Principal                     NATIONSBANK OF TEXAS, N.A., in its
Amount:  $25,000,000                    individual capacity as a Bank and as 
                                        Agent
Domestic Lending Office:
901 Main Street
Dallas, Texas 75201                         By: BILLY B. GREER
                                            Billy B. Greer
                                            Vice President
LIBOR Lending Office:
901 Main Street
Dallas, Texas 75201



Note Face Principal                     THE SUMITOMO BANK, LTD.,
Amount:  $20,000,000                    CHICAGO BRANCH

Domestic Lending Office:
233 S. Wacker Drive, Suite 5400
Chicago, Illinois 60606                     By: JOHN J. O'NEILL
                                            John J. O'Neill
LIBOR Lending Office:                       Vice President and Office Manager, 
233 S. Wacker Drive, Suite 5400             Houston
Chicago, Illinois 60606


                                            By: BRUCE PORTILLO
                                            Bruce Portillo
                                            Vice President, Houston


     [Signature Page - Amended and Restated Credit Agreement - Page 1 of 2]
<PAGE>
Note Face Principal                     WELLS FARGO BANK (TEXAS),
Amount:  $10,000,000                    NATIONAL ASSOCIATION,
                                        successor to First Interstate Bank of 
                                        Texas N.A.

Domestic Lending Office:
P.O. Box 4195
Portland, Oregon 97208-4195                 By: DAVID M. ANDERSON
                                            David M. Anderson
                                            Vice President
LIBOR Lending Office:
P.O. Box 4195
Portland, Oregon 97208-4195



     [Signature Page - Amended and Restated Credit Agreement - Page 2 of 2]