<PAGE>   1
                                                                    EXHIBIT 10.d


                            TITAN INTERNATIONAL, INC.
                          TITAN INVESTMENT CORPORATION
                            TITAN CREDIT CORPORATION

               SECOND AMENDMENT TO MULTICURRENCY CREDIT AGREEMENT

Harris Trust and Savings Bank,
   as Agent
111 West Monroe Street
Chicago, Illinois  60603

The Banks party to the
   Credit Agreement identified
   and defined below

Ladies and Gentlemen:

         Reference is hereby made to that certain Multicurrency Credit Agreement
dated as of September 17, 1998 (as amended, the "Credit Agreement") by and among
Titan International, Inc., an Illinois corporation (the "Company"), Titan
Investment Corporation, an Illinois corporation ("Titan Investment"), and Titan
Credit Corporation, a Nevada corporation ("Titan Credit"; the Company, Titan
Investment and Titan Credit being hereinafter referred to collectively as the
"Borrowers" and individually as a "Borrower") and each of you (the "Banks")
pursuant to which the Banks currently extend credit to the Borrowers.
Capitalized terms used herein shall have the same meaning herein as such terms
have in the Credit Agreement unless otherwise specified.

         The Borrowers have requested that the Banks make certain amendments to
the Credit Agreement. The Required Banks have agreed to accommodate such
requests by the Borrowers on the terms and conditions set forth in this Second
Amendment to Multicurrency Credit Agreement (the "Amendment").

SECTION 1.           DECREASE IN COMMITMENTS.

         Upon the execution of this Amendment by the Borrowers, the Agent and
the Required Banks, the Commitments for all the Banks shall be reduced to
$175,000,000. Accordingly, upon such execution, the amount of each Bank's
Commitment set forth opposite its name on its signature page to the Credit
Agreement (or, if relevant, on an assignment agreement pursuant to Section 15.12
of the Credit Agreement, as the case may be) shall be supplemented so as to
reflect such Bank's Commitment as follows:


<PAGE>   2


<TABLE>
<CAPTION>

                          BANK                             AMOUNT OF COMMITMENT
<S>                                                         <C>

Harris Trust and Savings Bank                                $  24,500,000.00
Bank One, NA                                                 $  21,000,000.00
Bank of America, N.A. (formerly NationsBank, N.A.)           $  21,000,000.00
Comerica Bank                                                $  24,500,000.00
SunTrust Bank, Atlanta                                       $  21,000,000.00
ABN AMRO Bank N.V.                                           $  21,000,000.00
Michigan National Bank                                       $  14,000,000.00
The Bank of New York                                         $  14,000,000.00
Firstar Bank of Milwaukee, N.A.                              $  14,000,000.00
                                                             ----------------
Total                                                        $ 175,000,000.00
                                                             ================
</TABLE>

To further effectuate the foregoing, upon the effectiveness of this Amendment as
hereinafter set forth, Section 1.1 of the Credit Agreement shall be and hereby
is amended by striking the amount "$250,000,000" wherever appearing therein and
substituting therefor the amount "$175,000,000".

SECTION 2.           AMENDMENTS.

     Upon the effectiveness of this Amendment as hereinafter set forth, the
Credit Agreement shall be and hereby is amended as follows:

     Section 2.01. Borrowing Base. Section 1.1 of the Credit Agreement shall be
and hereby is amended by amending and restating the third sentence of such
Section in its entirety to read as follows:

                         "The sum of the aggregate Original Dollar
                    Amount of outstanding Loans (whether Committed
                    Loans or Bid Loans) and L/C Obligations (other
                    than the Excluded Standby L/C Obligations) shall
                    not exceed the lesser of (x) the Commitments then
                    in effect and (y) Borrowing Base as then
                    determined and computed."

     Section 2.02. Maximum L/C Obligations. Section 1.2(a) of the Credit
Agreement shall be amended by striking the first sentence of such Section and
substituting therefor the following:

                         "Subject to the terms and conditions hereof,
                    as part of the Revolving Credit, the Agent shall
                    from time to time issue standby letters of credit
                    and commercial letters of credit (each a "Letter
                    of Credit") for the account of any or all of the
                    Borrowers (whether or not also for the account of
                    any other Subsidiary of the Company as well) prior
                    to the Termination Date, in an aggregate undrawn
                    face amount up to the amount of the L/C Sub-Limit,
                    provided that (1)

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                    the aggregate Original Dollar Amount of L/C
                    Obligations at any time outstanding shall not
                    exceed the difference between (x) the Commitments
                    in effect at such time and (y) the aggregate
                    Original Dollar Amount of Loans (whether Committed
                    Loans or Bid Loans) then outstanding, and (2) the
                    aggregate Original Dollar Amount of L/C
                    Obligations other than the Excluded Standby L/C
                    Obligations at any time outstanding shall not
                    exceed the difference between (x) the Borrowing
                    Base as then determined and computed and (y) the
                    aggregate Original Dollar Amount of Loans (whether
                    Committed Loans or Bid Loans) then outstanding."

     Section 2.03. Maximum Bid Loans. The first sentence of Section 3.1 of the
Credit Agreement shall be amended and as so amended shall be restated in its
entirety to read as follows:

                         "Any Borrower may request the Banks to offer
                    to make uncommitted loans (each a "Bid Loan" and
                    collectively the "Bid Loans") in U.S. Dollars in
                    the manner set forth in this Section 3 and in
                    amounts such that (i) the aggregate Original
                    Dollar Amount of all outstanding Loans (whether
                    Committed Loans or Bid Loans) and L/C Obligations
                    other than the Excluded Standby L/C Obligations
                    shall not exceed the lesser of (x) the Commitments
                    then in effect and (y) Borrowing Base as then
                    determined and computed."

        Section 2.04. Default Rate. Section 4.4(b) of the Credit Agreement shall
be amended by deleting the reference to "and deemed application of the Lower
Interest Coverage Period in each case" appearing in the first parenthetical
thereof.

        Section 2.05. Letter of Credit Fees. The second sentence of Section
5.2(a) of the Credit Agreement shall be amended by inserting "2% during the
Second Amendment Effective Period and thereafter" before the reference to "the
greater of (x) fifty percent (50%)" appearing therein.

        Section 2.06. Fees and Payments. Sections 5 of the Credit Agreement
shall be amended by (i) amending and restating the section heading thereof to
read as follows: "SECTION 5. FEES AND PLACE AND APPLICATION OF PAYMENTS." and
(ii) amending and restating Section 5.6 in its entirety and adding new Sections
5.7 and 5.8, in each case to read as follows:

                         "Section 5.6. Audit Fees. The Company shall
                    pay to the Agent for its own use and benefit
                    charge for audits of the Collateral performed by
                    the Agent or its agents or representatives in such
                    amounts as the Agent may from time to time
                    reasonably request; provided, however, that in the
                    absence of any Default or Event of Default, (i)
                    the Company shall not be required to reimburse the
                    Agent for its costs of conducting more than one
                    (1) audit in any one (1) calendar year and (ii)
                    the Company shall not be liable

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<PAGE>   4


                    during any one calendar year for more than $15,000
                    in the aggregate for such audits plus reasonable
                    out-of-pocket costs and expenses.

                         Section 5.7. Fee Calculations. All fees
                    payable hereunder shall be computed on the basis
                    of a year of 365 or 366 days, as applicable, for
                    the actual number of days elapsed.

                         Section 5.8. Place and Application of
                    Payments. All payments of principal of and
                    interest on the Loans and the Reimbursement
                    Obligations, and of all other amounts payable by
                    the Borrowers under this Agreement, shall be made
                    to the Agent by no later than 12:00 noon (Chicago
                    time) at the principal office of the Agent in
                    Chicago, Illinois (or such other location in the
                    State of Illinois as the Agent may designate to
                    the Company) or, if such payment is to be made in
                    an Agreement Currency, no later than 12:00 noon
                    local time at the place of payment (or such
                    earlier local time as is necessary for such funds
                    to be received and transferred to the Agent for
                    same day value on the day such Obligation is due)
                    to such office as the Agent has previously
                    specified in a notice to the Company (acting on
                    behalf of the Borrowers) for the benefit of the
                    Person or Persons entitled thereto. Any payments
                    received after such time shall be deemed to have
                    been received by the Agent on the next Business
                    Day. All such payments shall be made (i) in U.S.
                    Dollars, in immediately available funds at the
                    place of payment, or (ii) in the case of any Loans
                    denominated in an Alternative Currency or any
                    Reimbursement Obligations payable in an Available
                    Foreign Currency, in such Alternative Currency or
                    such Available Foreign Currency, as applicable, in
                    such funds as are then customary for the
                    settlement of international transactions in such
                    currency. Any payment by the Borrowers to the
                    Agent for account of the Banks in accordance with
                    the terms hereof shall, to the extent of such
                    payment, discharge the Borrowers' obligation to
                    make such a payment to the Banks, provided that if
                    any such payment is rescinded or must otherwise be
                    restored or returned, the Borrowers' obligations
                    to the Banks with respect to such payment shall be
                    reinstated as if such payment had never been made.
                    All such payments shall be made, in all cases,
                    without setoff or counterclaim and without
                    reduction for, and free from, any and all present
                    or future taxes, levies, imposts, duties, fees,
                    charges, deductions, withholdings, restrictions or
                    conditions of any nature imposed by any government
                    or any political subdivision or taxing authority
                    thereof (but excluding any taxes imposed or
                    measured by the net income of any Bank). The Agent
                    will promptly thereafter (and in any case before
                    the close of business on the day the Agent
                    receives such funds, if timely received by the
                    Agent) cause to be

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                    distributed like funds relating to the payment of
                    principal or interest on Committed Loans or fees
                    ratably to the Banks and like funds relating to
                    the payment of any other amount payable to any
                    Bank to such Bank (including without limitation a
                    Participating Bank's share under Section 1.2(f)
                    hereof of any collections received on any
                    Reimbursement Obligation), in each case to be
                    applied in accordance with the terms of this
                    Agreement. If the Agent fails to distribute such
                    payments to any Bank by such times, the Agent
                    shall pay to such Bank interest on the amount not
                    paid in respect of each day during the period
                    commencing on the date such payment was received
                    by the Agent (or the following Business Day in the
                    case of payments received after 12:00 noon
                    (Chicago time)) and ending on but excluding the
                    date the Agent pays such amount at a rate per
                    annum equal to (i) if such payment was received by
                    the Agent on account of an Obligation denominated
                    in U.S. Dollars, the effective rate charged to the
                    Agent for Federal Funds transactions with member
                    banks of the federal reserve system for each day
                    as determined by the Agent (or in the case of a
                    day which is not a Business Day, then for the
                    preceding day) and (ii) if such payment was
                    received by the Agent on account of an Obligation
                    denominated in an Agreement Currency, at the
                    Overnight Foreign Currency Rate.

                           Anything contained herein to the contrary
                    notwithstanding, all payments and collections
                    received in respect of (i) the indebtedness
                    evidenced by the Notes and Applications, (ii) the
                    Hedging Liability and (iii) and all proceeds of
                    the Collateral received, in each instance, by the
                    Agent or any of the Banks (or their affiliates in
                    the case of Hedging Liability) after the
                    occurrence of an Event of Default shall be
                    remitted to the Agent and distributed as follows:

                                (a) first, to the payment of any
                        reasonable outstanding costs and expenses
                        incurred by the Agent, in monitoring,
                        verifying, protecting, preserving or enforcing
                        the Liens on the Collateral, in protecting,
                        preserving or enforcing rights under the Loan
                        Documents and in any event including all
                        reasonable costs and expenses of a character
                        which the Borrowers have agreed to pay under
                        Sections 11.5 and 15.15 hereof (such funds to
                        be retained by the Agent for its own account
                        unless it has previously been reimbursed for
                        such costs and expenses by the Banks, in which
                        event such amounts shall be remitted to the
                        Banks to reimburse them for payments
                        theretofore made to the Agent);


                                   -5-

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                         (b) second, to the payment of any
                    outstanding interest or other fees or
                    indemnification amounts due under the Notes, the
                    Applications, the Agent's Fee Letter or this
                    Agreement other than for principal, ratably as
                    among the Agent and the Banks in accord with the
                    amount of such interest and other fees or amounts
                    owing each;

                         (c) third, to the payment of the principal
                    of the Notes, the Hedging Liability and any
                    liabilities in respect of unpaid drawings under
                    the Letters of Credit and to the Agent to be held
                    as collateral security for any undrawn Letters of
                    Credit (until the Agent is holding an amount of
                    cash equal to the then outstanding amount of all
                    such Letters of Credit), the aggregate amount paid
                    to or held as collateral security for the Banks to
                    be allocated pro rata as among the Banks in accord
                    with the then respective aggregate unpaid
                    principal balances of the Notes or Letters of
                    Credit (as the case may be) as to which such
                    payments relate;

                         (d) fourth, to the Agent and the Banks
                    ratably in accord with the amounts of other
                    Obligations owing to each of them (other than
                    those described above) unless and until all such
                    indebtedness, obligations and liabilities have
                    been fully paid and satisfied; and

                         (e) fifth, to the Company (on behalf of the
                    Borrowers, whose sole recourse shall be to the
                    Company for any amount so distributed to the
                    Company) or whoever else may be lawfully entitled
                    thereto."

     Section 2.07. Collateral. Section 6 of the Credit Agreement shall be
amended and restated in its entirety to read as follows:

          "SECTION 6. COLLATERAL.

                    Section 6.1. Generally. The Obligations and the
          Hedging Liability shall at all times be secured by valid,
          perfected (subject to the proviso appearing at the end of
          this sentence) and enforceable Liens on all right, title and
          interest of the Company and each Domestic Subsidiary in (i)
          all accounts and accounts receivable and (ii) (to the extent
          received in payment on or settlement of any account or
          account receivable) all notes and notes receivable, contract
          rights, instruments, documents, chattel paper or general
          intangibles (but in any event excluding patents, trademarks,
          tradenames, copyrights and similar intangibles) and (iii)
          all inventory, machinery and equipment (exclusive of
          vehicles

                                  -6-

<PAGE>   7


          and aircraft), and (iv) all proceeds of all of the
          foregoing, in each case whether now owned or hereafter
          acquired or arising; provided, however, that: (i) the Lien
          of the Agent on Property subject to a Capital Lease or
          conditional sale agreement or subject to a purchase money
          lien, in each instance to the extent permitted hereby, shall
          be subject to the rights of the lessor or lender thereunder,
          (ii) until a Default or Event of Default has occurred and is
          continuing and thereafter until otherwise required by the
          Agent or the Required Banks, Liens on notes, notes
          receivable, goods and fixtures need not be perfected
          provided that the total value of such property at any one
          time not so perfected shall not exceed $1,000,000 in the
          aggregate, (iii) Liens need not be granted or perfected on
          real estate, including leasehold interests therein, (iv)
          Liens need not be granted or perfected on the machinery,
          equipment or other fixed assets of Titan Tire Corporation of
          Natchez if and so long as and to the extent that such
          Subsidiary's title to such Property is the subject of bona
          fide dispute regarding Condere Corporation's right to
          transfer such Property to such Subsidiary and (v) Liens need
          not be granted on any Property of any Immaterial Subsidiary.
          The Company acknowledges and agrees that the Liens on the
          Collateral shall be granted to the Agent for the benefit of
          itself, the Banks and certain Affiliates of the Banks and
          shall be valid and perfected first priority Liens subject,
          however, to the proviso appearing at the end of the
          immediately preceding sentence and the Liens permitted by
          subsections (a), (c), (f), (g) and (h) of Section 10.12
          hereof (collectively the "Permitted Liens"), in each case
          pursuant to one or more Collateral Documents from such
          Persons, each in form and substance satisfactory to the
          Agent. The Company further agrees that any Subsidiary
          required by this Section or Section 6.2 hereof to grant a
          Lien on its Property must guarantee the Obligations and
          Hedging Liability as contemplated by Section 10.15 hereof,
          whether or not such Section would otherwise so require.

               Section 6.2. Further Assurances. The Company agrees
          that it shall, and shall cause each Domestic Subsidiary to,
          from time to time at the request of the Agent or the
          Required Banks, execute and deliver such documents and do
          such acts and things as the Agent or the Required Banks may
          reasonably request in order to provide for or perfect or
          protect such Liens on the Collateral. In the event the
          Company or any Domestic Subsidiary forms or acquires any
          other Domestic Subsidiary (other than any Immaterial
          Subsidiary) after the date hereof, the Company shall within
          10 Business Days of such formation or acquisition cause such
          newly formed or acquired Domestic Subsidiary (other than any
          Immaterial Subsidiary) to execute such Collateral Documents
          as the Agent may then require, and the Company shall also
          deliver to the Agent, or cause such Domestic Subsidiary to
          deliver to the

                                  -7-

<PAGE>   8


          Agent, at the Company's cost and expense, such other
          instruments, documents, certificates and opinions reasonably
          required by the Agent in connection therewith."

     Section 2.08. Change in Applicable Margin. Section 2.1(c) of the Credit
Agreement shall be amended by amending and restating in its entirety the
definition of "Applicable Margin" appearing therein to read as follows:

               "(c) Applicable Margin. With respect to Committed Loans
          and the facility fee payable under Section 5.1 hereof, the
          "Applicable Margin" shall mean the rate specified for such
          Obligation below, subject to quarterly adjustment as
          hereinafter provided:

<TABLE>
<CAPTION>
         When Following Status  Applicable Margin    Applicable Margin       Applicable
         Exists For any Margin  For Domestic Rate    For Eurocurrency        Margin For
         Determination Date        Loans Is:            Loans Is:        Facility Fee Is:
         <S>                    <C>                  <C>                 <C>


         Level I Status             0%                   .500%                 .20%
         Level II Status            0%                   .750%                 .20%
         Level III Status           0%                  1.000%                 .20%
         Level IV Status            0%                  1.250%                 .20%
         Level V Status             0%                  1.500%                 .20%

</TABLE>
         provided, however, that all of the foregoing percentages set
         forth in the chart above are subject to the following:

              (i) on or before the date that is ten (10) Business
         Days after the latest date by which the Company is
         required to deliver a Compliance Certificate to the Agent
         for a given quarterly accounting period pursuant to Section
         10.5(b) hereof (each date that is ten Business Days after
         the latest date by which the Company is required to deliver
         a Compliance Certificate to the Agent being herein referred
         to as a "Margin Determination Date"), the Agent shall
         determine whether Level I Status, Level II Status, Level III
         Status, Level IV Status or Level V Status exists as of the
         close of the applicable quarterly accounting period (the
         "quarterly test period") and shall also determine the Debt
         to Earnings Ratio as of such close, in each case based upon
         such Compliance Certificate and the financial statements
         delivered to the Agent under Section 10.5 hereof for such
         quarterly test period, and shall promptly notify the Company
         (acting on behalf of the Borrowers) of such determination
         and of any change in the Applicable Margin resulting
         therefrom. Any change in the Applicable Margin shall be
         effective as of such Margin Determination Date, with such
         new Applicable Margin to continue in effect until the next
         Margin Determination Date;

                                  -8-

<PAGE>   9

               (ii) other than during the Second Amendment Effective
          Period, if the Company has not delivered a Compliance
          Certificate by the date such Compliance Certificate is
          required to have been delivered under Section 10.5 hereof,
          but delivers such Compliance Certificate before the next
          Margin Determination Date, the Applicable Margin shall be
          the Applicable Margin for Level V Status. If the Company
          subsequently delivers such late Compliance Certificate
          before the next Margin Determination Date, the Applicable
          Margin established by such Compliance Certificate shall take
          effect from the date ten (10) Business Days after the date
          of such delivery and remain effective until such next Margin
          Determination Date;

               (iii) during the Second Amendment Effective Period,
          notwithstanding anything herein to the contrary, other than
          upon the occurrence and during the continuance of an Event
          of Default, the Applicable Margin for (A) Domestic Rate
          Loans shall be 1.00% and (B) Eurocurrency Loans shall be
          2.75%; and

               (iv) if and so long as any Event of Default has
          occurred and is continuing hereunder, other than during the
          Second Amendment Effective Period, notwithstanding anything
          herein to the contrary, the Applicable Margin shall be 0%
          for Domestic Rate Loans and 1.5% for Eurocurrency Loans and
          0.20% for the Facility Fee."

      Section 2.09. Deleted and Changed Definitions. Section 7.1 of the Credit
Agreement shall be amended by (i) striking the terms "Lower Interest Coverage
Period" and "Calendar Year 1999" appearing therein and (ii) amending and
restating in their entirety the following definitions appearing therein to read
as follows:

          "Borrowing Base" means, as of any time it is to be
          determined, the sum of:

                    (a) 85% of the then aggregate outstanding amount
               of Eligible Domestic Accounts; plus

                    (b) 55% of the value (computed at its cost using
               the method of inventory valuation applied by the
               Borrower in accordance with GAAP which reflects such
               cost on the Borrower's books as its net book value, but
               in any event after reducing such value as so computed
               by the aggregate amount of all reserves for
               obsolescence, slow-moving items, shrinkage and all such
               other matters as to which GAAP shall from time to time
               require reserves to adjust such net book value) of
               Eligible Domestic Inventory; plus

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<PAGE>   10

                    (c) the Fixed Asset Advance (defined elsewhere
               herein as $50,000,000); plus

                    (d) 100% of the aggregate value (but not in any
               event in excess of $9,000,000) of all cash and
               marketable securities not subject to a Lien (other than
               any Lien on the Collateral Documents in favor of the
               Agent for the benefit and security of the Obligations
               and Hedging Liability), maintained in one or more bank
               accounts in the State of Illinois with a Bank and owned
               by the Borrowers and each other Domestic Restricted
               Subsidiary;

          provided that the Borrowing Base shall be computed only as
          against and on so much of the assets as are included on the
          certificates to be furnished from time to time by the
          Company pursuant to Section 10.5(a)(ix) hereof.

          "Eligible Domestic Account" means each account receivable of
          each Borrower and Domestic Restricted Subsidiary with
          respect to which all representations and warranties set
          forth in the Collateral Documents are true and correct and
          which:

                    (a)  arises out of the sale by such Borrower or
               Domestic Subsidiary of finished goods inventory
               delivered to and accepted by, or out of the rendition
               by such Borrower or Domestic Subsidiary of services
               fully performed by such Borrower or Domestic Subsidiary
               and accepted by, the account debtor on such account
               receivable and such account receivable otherwise
               represents a final sale;

                    (b)  the account debtor on such account receivable
               is located within the United States of America or, if
               such right has arisen out of the sale of such goods
               shipped to, or out of the rendition of services to, an
               account debtor located in any other country, such right
               is secured by a valid and irrevocable letter of credit
               pursuant to which such Borrower or Domestic Subsidiary
               or its respective transferee may draw on a lender
               reasonably acceptable to the Agent for the full amount
               thereof;

                    (c)  is the valid, binding and legally enforceable
               obligation of the account debtor obligated thereon and
               such account debtor is not (i) a Subsidiary or an
               Affiliate of the Company or any Subsidiary, (ii) a
               director, officer or employee of the Company or any
               Subsidiary, (iii) the

                                  -10-

<PAGE>   11

               United States of America (provided that accounts
               receivable shall not be deemed ineligible solely by
               virtue of this clause (iii) to the extent that the
               unpaid amount of all such receivables as to which there
               has not been compliance with the Assignment of Claims
               Act or any such other statute aggregates at no time
               more than 20% of the Borrowing Base), or any state or
               political subdivision thereof, or any department,
               agency or instrumentality of any of the foregoing,
               unless such Borrower or Domestic Subsidiary has
               complied with the Assignment of Claims Act or any
               similar state or local statute, as the case may be, to
               the satisfaction of the Agent, (iv) a debtor under any
               proceeding under the United States Bankruptcy Code, as
               amended, or any other comparable bankruptcy or
               insolvency law (unless and to the extent the Agent
               approves the eligibility of accounts owing by such a
               debtor), or (v) an assignor for the benefit of
               creditors;

                    (d)  is not evidenced by an instrument or chattel
               paper unless the same has been endorsed and delivered
               to the Agent;

                    (e)  is an asset of such Borrower or Domestic
               Subsidiary to which it has good and marketable title,
               is freely assignable, and is subject to a perfected,
               first priority Lien in favor of the Agent free and
               clear of any other Liens;

                    (f)  is not owing from an account debtor who is
               also a creditor or supplier of such Borrower or
               Domestic Subsidiary to which creditor or supplier
               $100,000 or more is owed, is not subject to any offset,
               counterclaim or other defense with respect thereto (the
               account receivable owing by any such creditor or
               supplier to be eligible to the extent in excess of any
               such contra or setoff) and, with respect to said
               account receivable or the contract or purchase order
               out of which the same arose, no surety bond was
               required or given in connection therewith;

                    (g)  is not unpaid more than ninety (90) days after
               the original due date (which must be not more than one
               hundred eighty (180) days subsequent to the original
               invoice date and which invoice date must be not more
               than five (5) days after the relevant shipment date or
               the date services were fully performed by such Borrower
               or Domestic Subsidiary);

                                  -11-

<PAGE>   12


                    (h)  is not owed by an account debtor who is
               obligated on accounts receivable owed to such Borrower
               or Domestic Subsidiary more than 15% (but 50% in the
               case of: Deere & Company; Caterpillar, Inc.; New
               Holland; J. I. Case Co., Inc.; Komatsu Dresser, Inc.;
               OTR Wheel; Hercules Tire & Rubber; Intercontinental
               Resource, Inc.; AGCO; Midwest Industries; the United
               States federal government or any department thereof;
               and any other account debtor approved by the Agent) of
               the aggregate unpaid balance of which have been past
               due for longer than the relevant period specified in
               subsection (g) above unless the Agent has approved the
               continued eligibility thereof;

                    (i)  would not cause the total accounts receivable
               owing from any one account debtor (other than: Deere &
               Company; Caterpillar, Inc.; New Holland; J. I. Case
               Co., Inc.; Komatsu Dresser, Inc.; OTR Wheel; Hercules
               Tire & Rubber; Intercontinental Resource, Inc.; AGCO;
               Midwest Industries; the United States federal
               government or any department thereof; and any other
               account debtor approved by the Agent) and its
               Affiliates to exceed 10% of all Eligible Domestic
               Accounts; and

                    (j)  does not arise from a sale to an account
               debtor on a bill-and-hold, guaranteed sale,
               sale-or-return, sale-on-approval, consignment or any
               other repurchase or return basis.

          "Eligible Domestic Inventory" means all raw materials,
          work-in-progress (in an aggregate amount not in excess of
          $9,000,000) inventory and finished goods inventory
          (including as such, bare rims) of each Borrower and Domestic
          Restricted Subsidiary (other than supplies inventory);
          provided that in no event shall inventory be deemed Eligible
          Domestic Inventory unless all representations and warranties
          set forth in the Collateral Documents with respect to such
          inventory are true and correct and such inventory:

               (a)  is an asset of such Borrower or Domestic Subsidiary
          to which it has good and marketable title, is freely
          assignable, and is subject to a perfected, first priority
          Lien in favor of the Agent free and clear of any other Liens
          other than the Permitted Liens;

               (b)  is (i) located at the facilities of such Borrower
          or Domestic Subsidiary in the United States or (ii) located
          at such other locations as are approved in writing by the
          Agent and (1) in the case of facilities not owned by such
          Borrower or Domestic

                                  -12-

<PAGE>   13


          Subsidiary, to the extent not waived by the Agent, which are
          at all times subject to landlord waiver agreements in form
          and substance satisfactory to the Agent and (2) as to any
          inventory which is on consignment, (x) the relevant
          consignee has acknowledged the Agent's prior rights to such
          inventory in writing in form and substance satisfactory to
          the Agent, (y) the inventory on consignment is reasonably
          identifiable as belonging to such Borrower or Domestic
          Subsidiary and (z) the Agent otherwise satisfied itself that
          the Agent has a first and prior lien on such inventory
          (which satisfaction may require the filing of any
          consignment financing statements deemed necessary by the
          Agent, the provision of notice to the consignee's creditors
          of the Agent's prior security interest in such inventory and
          waivers from such creditors of their competing liens on or
          rights to such inventory);

                    (c)  is not so identified to a contract to sell
          that it constitutes an account; and

                    (d) is not obsolete or slow moving, and is of good
          and merchantable quality free from any defects which might
          adversely affect the market value thereof.

                    "Interest Coverage Ratio" means, as of any time
          the same is to be determined, the ratio of EBITDA to
          Interest Expense in each case for the period of the then
          four most recently completed consecutive fiscal quarters of
          the Company.

                    "Loan Documents" means this Agreement and all
          exhibits hereto, the Notes, the Applications, the Letters of
          Credit, the Agent's Fee Letter, the Collateral Documents and
          each Guarantee Agreement delivered to the Agent pursuant to
          Sections 9.1 or 10.15 hereof, as applicable.

                    "Temporary Add-Back" shall mean $0.

                    "Termination Date" means December 1, 2002 or such
          earlier date on which the Commitments are terminated in
          whole pursuant to Sections 4.6, 4.7, 11.2 or 11.3 hereof.

          Section 2.10. New Definitions. Section 7.1 of the Credit Agreement
shall be amended by inserting in the appropriate alphabetical locations the
definitions of the following terms:

                    "Capital Expenditures" means with reference to any
          period, the aggregate amount of all expenditures (whether
          paid in cash or accrued as a liability, but without
          duplication) by the Company and its Subsidiaries during that
          period which, in

                                  -13-

<PAGE>   14


          accordance with GAAP consistently applied, are capital
          expenditures.

          "Collateral" means all properties, rights, interests and
     privileges from time to time subject to the Liens granted to the
     Agent, or any security trustee therefor, by the Collateral
     Documents.

          "Collateral Documents" means the Security Agreement, and all
     other pledge agreements, assignments, financing statements and
     other documents as shall from time to time secure or relate to
     the Obligations, the Hedging Liability or any part thereof.

          "Domestic Restricted Subsidiary" means each Domestic
     Subsidiary which is not an Unrestricted Subsidiary.

          "Hedging Liability" is defined in the Security Agreement.

          "Immaterial Subsidiary" means any Subsidiary which has no
     assets or earnings since the most recently completed fiscal year
     of the Company other than as the result of a transaction
     prohibited by this Agreement.

          "Permitted Liens" is defined in Section 6.1 hereof. "Second
     Amendment Effective Date" means the date of the Second Amendment
     to this Agreement.

          "Second Amendment Effective Period" means the period from
     and including the Second Amendment Effective Date to but not
     including the Margin Determination Date set with respect to the
     first quarterly test period in the Company's fiscal year 2001.

          "Security Agreement" means that certain Security Agreement
     dated as of even date herewith among the Company and its Domestic
     Restricted Subsidiaries (other than Immaterial Subsidiaries) and
     the Agent, as the same may be amended, modified, supplemented or
     restated from time to time.

     Section 2.11. Subsidiaries. Section 8.2 of the Credit Agreement shall be
amended by amending and restating the penultimate sentence thereof to read as
follows: "As of the Second Amendment Effective Date, the Company has designated
(i) Titan Wheel Corporation of South Carolina and FUNSA as the sole Unrestricted
Subsidiaries and (ii) Nieman's Ltd., DICO Inc., Titan Wheel Corporation of Ohio,
Titan Wheel Corporation of Nevada and Titan Transportation, Inc. as the sole
Immaterial Subsidiaries."

                                      -14-

<PAGE>   15


        Section 2.12. Authority and Validity. Section 8.3 of the Credit
Agreement shall be amended by (i) inserting "grant to the Agent the Liens
described in the Collateral Documents executed by the Company" immediately after
the first comma appearing therein and (ii) except for the first reference to
"Guarantor" deleting each reference to "Guarantor" appearing therein and
inserting "Subsidiary party thereto" in lieu thereof and (iii) inserting "other
than Liens granted in favor of the Agent pursuant to the Collateral Documents"
immediately before the period at the end thereof.

        Section 2.13. Insurance. Section 10.4 of the Credit Agreement shall be
amended by inserting the following sentence immediately prior to the last
sentence thereof: "The Company shall in any event maintain, and cause each
Domestic Restricted Subsidiary party to a Collateral Document to maintain,
insurance on that portion of the Collateral consisting of inventory, machinery
and equipment, to the extent required by the Collateral Documents."

        Section 2.14. Borrowing Base Certificate. Section 10.5(a)(ix) of the
Credit Agreement shall be amended and restated in its entirety to read as
follows:

                    "(ix) within 30 days after the end of each monthly
          accounting period of the Company (commencing with the
          monthly accounting period ending on or about November 30,
          1999), a written certificate signed by the Company's
          President or Vice President-Finance showing in reasonable
          detail the (A) computation of the Borrowing Base as of the
          close of such monthly accounting period and (B) accounts
          receivable aging at a minimum classifying accounts
          receivable as unpaid within 30 days, within 60 days or over
          60 days, such certificate to be in form and substance
          reasonably acceptable to the Agent and the Required Banks."

        Section 2.15. Inspection. Section 10.5(e) of the Credit Agreement shall
be amended by inserting "(such inspections including the right to conduct field
audits of the Collateral, including without limitation a field audit which shall
be conducted by the Agent or its representative(s) by no later than March 31,
2000)" immediately prior to the fifth comma appearing therein.

        Section 2.16. Minimum EBITDA. Section 10.6 of the Credit Agreement shall
be amended and restated as so amended shall be restated to read as follows:

                    "Section 10.6. Minimum EBITDA. The Company shall not
          permit its EBITDA for (i) the fiscal quarter of the Company
          ending on or about December 31, 1999 to be less than
          $5,000,000 and (ii) any period commencing on January 1, 2000
          and ending on the last day of any fiscal quarter of the
          Company ending on or about any date set forth below, to be
          less than the amount set forth for such period below:

                                  -15-



<PAGE>   16
<TABLE>
<CAPTION>

                          FOR PERIOD COMMENCING
                          1/1/2000 AND ENDING ON
                            LAST DAY OF FISCAL      EBITDA FOR SUCH PERIOD
                        QUARTER ENDING ON OR ABOUT  SHALL NOT BE LESS THAN

                               <S>                      <C>
                                3/31/2000                $14,000,000


                                6/30/2000                $31,000,000


                                9/30/2000                $45,000,000


                                12/31/2000               $59,000,000"
</TABLE>


                  The Company is not required by this Section to maintain any
                  minimum EBITDA for any period (x) prior to the fiscal quarter
                  of the Company ending on or about December 31, 1999 or (y)
                  after December 31, 2000."

        Section 2.17. Interest Coverage Ratio and Debt to Earnings Ratio.
Sections 10.8 and 10.9 of the Credit Agreement shall each be amended and
restated and as so amended shall be restated to read as follows:

                           "Section 10.8. Interest Coverage Ratio. The Company
                  will not permit its Interest Coverage Ratio for the four
                  fiscal quarters of the Company ended on the last day of any
                  fiscal quarter of the Company set forth below, to be less than
                  the amount set forth for such date below:


<TABLE>
<CAPTION>
                                                            INTEREST COVERAGE RATIO FOR RELEVANT
                             AS OF LAST DAY OF                    PERIOD SHALL BE AT LEAST

               <S>                                                     <C>
                  First fiscal quarter of fiscal year 2000               1.50 to 1.0


                  Second fiscal quarter of fiscal year                   1.50 to 1.0
                  2000


                  Third fiscal quarter of fiscal year 2000               1.75 to 1.0


                  Each fiscal quarter thereafter                         2.00 to 1.0
</TABLE>


                           Section 10.9. Debt to Earnings Ratio. The Company
                  will not permit its Debt to Earnings Ratio to exceed 5.0 to
                  1.0 as of the last day of any fiscal quarter of the Company
                  (commencing with its fiscal quarter ending March 31, 2001)."


                                      -16-

<PAGE>   17


        Section 2.18. Acquisitions. Subsection (k) in Section 10.10 of the
Credit Agreement shall be amended and restated and as so amended shall be
restated to read as follows:

                           "(k) acquisitions of all or substantially all of the
                  assets or business of any other Person or division thereof, or
                  of all or substantially all the Voting Stock of a Person, so
                  long as (i) no Default or Event of Default exists or would
                  exist after giving effect to such acquisition, (ii) the Board
                  of Directors or other governing body of such Person whose
                  Property or Voting Stock is being so acquired has approved the
                  terms of such acquisition, (iii) the Company can demonstrate
                  that on a pro forma basis after giving effect to such
                  acquisition it will continue to comply through the term of
                  this Agreement with all the terms and conditions of the Loan
                  Documents, (iv) the Company has provided to the Banks such
                  financial and other information regarding the Person whose
                  Property or Voting Stock is being so acquired, including
                  historical financial statements, and a description of such
                  Person, as the Agent or the Required Banks have reasonably
                  requested and (v) the aggregate consideration paid for all
                  such acquisitions (and in any event (1) including as such
                  consideration, any Debt assumed or incurred as a result of
                  such acquisition and (2) excluding as such consideration, any
                  equity securities issued by the Company or any Subsidiary as
                  consideration for such acquisition) during the period from and
                  including the Second Amendment Effective Date to and including
                  December 31, 2000, when aggregated with the aggregate amount
                  of all Restricted Equity Payments made during such period
                  permitted under clause (y) in Section 10.13 hereof, does not
                  exceed $5,000,000 except to the extent otherwise approved in
                  writing by the Required Banks;"

        Section 2.19. Indebtedness. Section 10.11(f) of the Credit Agreement
shall be amended and restated in its entirety to read as follows:

                           "(f) Subordinated Debt in a principal amount not in
                  excess of the sum of (i) the principal amount of Subordinated
                  Debt issued and outstanding on the Second Amendment Effective
                  Date to the extent described on Schedule 10.11(f) hereto plus
                  (ii) $10,000,000;"

        Section 2.20. Liens. Section 10.12 of the Credit Agreement shall be
amended by (i) deleting the reference to "and" appearing at the end of
subsection (m) thereof, (ii) deleting the period at the end of subsection (n)
thereof and inserting "; and" in its place and (iii) adding a new proviso (o)
thereto which shall be stated to read as follows: "(o) Liens granted in favor of
the Agent for the benefit of the Agent, the Banks and certain Affiliates of the
Banks pursuant to the Collateral Documents."


                                      -17-

<PAGE>   18


        Section 2.21. Restricted Equity Payments. Section 10.13 of the Credit
Agreement shall be amended and restated and so amended shall be restated to read
as follows:

                           "Section 10.13. Dividends and Certain Other
                  Restricted Payments. (a) Restricted Equity Payments. The
                  Company will not during any calendar year (i) declare or pay
                  any dividends on or make any other distributions in respect of
                  any class of its capital stock or any warrant to acquire any
                  such capital stock (other than dividends payable solely in its
                  capital stock) or (ii) directly or indirectly or through any
                  Subsidiary purchase, redeem or otherwise acquire or retire any
                  of its capital stock or any warrant to acquire any such
                  capital stock (except out of the proceeds of, or in exchange
                  for, a substantially concurrent issue and sale of its capital
                  stock) (each such non-excepted declaration or payment of any
                  dividend, purchase, redemption, acquisition, retirement and
                  distribution in respect to any such capital stock being herein
                  collectively called a "Restricted Equity Payment") if at the
                  time of such Restricted Equity Payment or immediately after
                  giving effect thereto, (x) any Event of Default or Default
                  shall occur or be continuing, (y) the amount of such
                  non-excepted purchases, redemptions, retirements and
                  distributions in respect to capital stock which are made
                  during the period from and including the Second Amendment
                  Effective Date to and including December 31, 2000, when
                  aggregated with the aggregate consideration paid for all
                  acquisitions closed during such period permitted under
                  subsection (k) and calculated in accordance therewith to
                  Section 10.10 hereof, would exceed $5,000,000 or (z) the
                  amount of all Restricted Equity Payments made since the date
                  hereof would exceed 50% of Consolidated Net Income for the
                  period (taken as a single accounting period) commencing on the
                  date hereof and terminating at the last fiscal quarter
                  preceding the date of the Restricted Equity Payment at issue
                  (provided that this clause (z) shall only apply on or after
                  January 1, 2001). Notwithstanding the foregoing, this Section
                  shall not apply to nor prohibit any (x) Permitted Company
                  Redemption on or after January 1, 2002 or (y) payment in any
                  one calendar quarter of a cash dividend aggregating not more
                  than $500,000 in respect of the Company's common stock if at
                  the time thereof and immediately after giving effect thereto,
                  no Event of Default or Default shall occur or be continuing."

        Section 2.22. Mergers, Consolidations, Leases and Sales. Section
10.14(a) of the Credit Agreement shall be amended and restated in its entirety
to read as follows:

                           "Section 10.14. Mergers, Consolidations, Leases and
                  Sales. (a) The Company will not, and will not permit any


                                      -18-

<PAGE>   19




                  Subsidiary to, sell, transfer, of or otherwise dispose of all
                  or any part of its property, assets or business, or in any
                  event sell or discount (with or without recourse) any of its
                  notes or accounts receivable or be or become liable as lessee
                  of any property theretofore owned by the Company or any
                  Subsidiary; provided, however, that this Section shall not
                  apply to nor prohibit:

                           (i)   the sale by the Company or any Subsidiary of
                  assets no longer used or useful in the conduct of their
                  respective businesses or from selling or leasing inventory in
                  the ordinary course of their respective businesses;

                           (ii)  the transfer of any such assets to a Subsidiary
                  of the Company or a Wholly-owned Subsidiary in exchange for
                  all issued and outstanding securities or as an additional
                  contribution to capital thereof;

                           (iii) the sale of delinquent notes or accounts
                  receivable in the ordinary course of business for purposes of
                  collection only (and not for the purpose of any bulk sale or
                  securitization transaction); or

                           (iv)  the sale or other disposition of assets of the
                  Company and its Subsidiaries provided the aggregate fair
                  market value of such assets so sold or disposed on a
                  cumulative basis on and after September 30, 1999 does not
                  exceed $75,000,000.

                  The Banks hereby irrevocably authorize the Agent, at its
                  option and in its discretion, to release, so long as no
                  Default or Event of Default has occurred and is continuing at
                  the time of such release, any Lien granted to or held by the
                  Agent upon Collateral (i) upon termination of the Commitments
                  and payment in full of all Loans and all other Obligations and
                  (ii) constituting property sold or to be sold or disposed of
                  as part of or in connection with any sale or disposition
                  permitted in this Section 10.14(a)."

        Section 2.23. Double Negative Pledge. Section 10.27 of the Credit
Agreement shall be amended by deleting the last sentence thereof.

        Section 2.24. Capital Expenditures. Section 10 of the Credit Agreement
shall be amended by adding a new Section 10.28 at the end thereof which Section
10.28 shall be stated to read as follows:

                           "Section 10.28. Capital Expenditures. The Company
                  shall not permit, during each fiscal year of the Company
                  (commencing with the fiscal year ending December 31, 2000),
                  the


                                      -19-



<PAGE>   20

                  aggregate Capital Expenditures for the Company and its
                  Subsidiaries to exceed the Maximum Permitted Amount for such
                  period. For purposes of this Section 10.28 "Maximum Permitted
                  Amount" shall mean $36,000,000; provided, however, that the
                  Maximum Permitted Amount shall be increased by the amount, if
                  any, by which the Maximum Permitted Amount for the immediately
                  preceding fiscal year, computed without giving effect to this
                  proviso, exceeds the actual Capital Expenditures expended by
                  the Company and its Subsidiaries for such preceding fiscal
                  year."

        Section 2.25. Events of Default. Section 11.1 shall be amended by (i)
inserting "or of any provision in any Loan Document dealing with the use,
disposition or remittance of the proceeds of Collateral or requiring the
maintenance of issuance thereon" immediately prior to the semicolon appearing at
the end of subsection (b) thereof and (ii) inserting "or of any other Loan
Document" immediately after the reference to "provision hereof" appearing in
subsection (c) thereof, (iii) deleting the references to "herein" and "hereto"
appearing in subsection (d) thereof and inserting "in the Loan Documents" and
"thereto" respectively in lieu thereof and (iv) deleting the references to
"guarantee of any Obligations" and "guarantee" appearing in subsection (h) and
inserting "Loan Document" in lieu thereof.

        Section 2.26. Action by Agents. Section 13.3 of the Credit Agreement
shall be amended by inserting the following two sentences immediately at the end
thereof:

                  "The Agent shall not, without the consent of each Bank,
                  release all or substantially all of the Collateral. Upon the
                  occurrence of an Event of Default, the Agent shall take such
                  action to enforce its Lien on the Collateral and to preserve
                  and protect the Collateral as may be directed by the Required
                  Banks."

        Section 2.27. Liability of Agent. Section 13.5 of the Credit Agreement
shall be amended by (i) deleting the references to "herewith" and "this
Agreement" appearing therein and inserting "with the Loan Documents" and "the
Loan Documents" in lieu thereof and (ii) amending and restating subsection (iv)
of the second sentence thereof to read as follows:

                  "(iv) the validity, effectiveness, genuineness,
                  enforceability, perfection, value, worth or collectibility
                  hereof or of any other Loan Document or of any other documents
                  or writing furnished in connection with any Loan Document or
                  of any Collateral; and the Agent makes no representation of
                  any kind or character with respect to any such matter
                  mentioned in this sentence."

        Section 2.28. Guaranty of Hedging Liability. Section 14.1 of the Credit
Agreement shall be amended by striking the phrase "indebtedness of the Borrowers
evidenced by or arising out of the Loan Documents" and substituting therefor the
phrase "indebtedness of the Borrowers evidenced by or arising out of the Loan
Documents and any Hedging Liability."


                                      -20-


<PAGE>   21

        Section 2.29. Legal Fees, Other Costs and Indemnification. Section 15.15
of the Credit Agreement shall be amended by (i) inserting the following sentence
prior to the end of the first sentence thereof: "together with any fees and
charges suffered or incurred by the Agent in connection with collateral filing
fees and lien searches".

         Section 2.30 Entire Agreement and Construction. Section 15.19 of the
Credit Agreement shall be amended by (i) adding "and Construction" in the
Section heading thereof and (ii) adding the following sentence at the end
thereof:

                  "Nothing contained herein shall be deemed or construed to
                  permit any act or omission which is prohibited by the terms of
                  any Collateral Document, the covenants and agreements
                  contained herein being in addition to and not in substitution
                  for the covenants and agreements thereby contained in the
                  Collateral Documents. By virtue of a Bank's execution of this
                  Agreement or an Assignment Agreement, as the case may be, any
                  Affiliate of such Bank with whom the Borrower has entered into
                  an agreement creating Hedging Liability shall be deemed a Bank
                  party hereto for purpose of any reference in a Loan Document
                  to the parties for whom the Agent is acting, it being
                  understood and agreed that the rights and benefits of such
                  Affiliate under the Loan Documents consist exclusively of such
                  Affiliate's right to share in payments and collections out of
                  the Collateral and the Guarantee Agreements as more fully set
                  forth in other provisions hereof."

        Section 2.31. Compliance Certificate. Schedule I to Exhibit H of the
Credit Agreement shall be amended and restated in its entirety to read as set
forth on Annex I hereto.

        Section 2.32. Security Agreement. The Credit Agreement shall be amended
by adding (in the appropriate location) a new Exhibit M thereto which shall be
stated to read as set forth on Annex II hereto.

        Section 2.33. Subsidiaries Schedule. Schedule 8.2 of the Credit
Agreement shall be amended and restated in its entirety to read as set forth on
Annex III hereto.

        Section 2.34. Subordinated Debt Schedule. The Credit Agreement shall be
amended by adding (in the appropriate location) a new Schedule 10.11(f) thereto
which shall be stated to read as set forth on Annex IV hereto.

SECTION 3.           RELEASE OF GUARANTIES.

         The Borrowers hereby represent that the following subsidiaries are
Immaterial Subsidiaries (collectively, the "Shell Guarantors"): Nieman's Ltd.;
Dico Inc. and Titan Wheel Corporation of Ohio. Such subsidiaries are not
required by Section 10.15 of the Credit Agreement to execute and deliver
Guarantee Agreements. Accordingly, the Company has requested the Agent release
the Shell Guarantors from their Guarantee Agreements, as permitted



                                      -21-


<PAGE>   22


by Section 15.13 of the Credit Agreement. Accordingly, upon the effectiveness of
this Amendment as hereinafter set forth, the Guarantee Agreements of the Shell
Guarantors shall be released and terminated and thus of no further force and
effect.

SECTION 4.         CONDITIONS PRECEDENT.

         The effectiveness of this Amendment is subject to the satisfaction of
all of the following conditions precedent:


                   (a) The Borrowers, the Agent and the Required Banks shall
         have accepted this Amendment in the spaces provided for that purpose
         below.

                   (b) The Guarantors shall have accepted this Amendment in the
         spaces provided for that purpose below.

                   (c) The Agent shall have received (i) for the ratable account
         of each of the Banks signatory hereto a fee equal to the lesser of
         0.375% of the Commitments and $656,250 in consideration of each such
         Bank's execution of this Amendment and (ii) the fees agreed to between
         the Agent and the Company as set forth in that certain Fee Letter dated
         as of October 19, 1999.

                   (d) The Agent shall have received, with a sufficient number
         of copies for each Bank (which the Agent shall properly distribute to
         each Bank), a Borrowing Base certificate complying with Section
         10.5(a)(ix) of the Credit Agreement after giving effect to this
         Amendment showing the computation of the Borrowing Base as of October
         31, 1999.

                   (e) The Agent shall have received the Security Agreement duly
         executed by the Borrowers and the Domestic Subsidiaries party thereto,
         together with UCC financing statements to be filed against each such
         Borrower and each such Domestic Subsidiary, as debtor, in favor of the
         Agent, as secured party.

                   (f) The Agent shall have received evidence of insurance
         required to be maintained under the Loan Documents, naming the Agent as
         loss payee.

                   (g) The Agent shall have received financing statement, tax
         and judgment lien search results against the Property (exclusive of
         real estate) of each Borrower and each Domestic Subsidiary (other than
         any Immaterial Subsidiary) evidencing the absence of Liens on its
         Property except as permitted by Section 10.12 hereof.

                   (h) The Agent shall have received a Guarantee Agreement,
         together with the supporting documentation contemplated by Section
         10.15 of the Credit Agreement, from each of Titan Tire Corporation of
         Texas and Titan Tire Corporation of Natchez.


                                      -22-


<PAGE>   23




                   (i) The Borrowers and the Guarantors shall be in full
         compliance with the terms of the Loan Documents and no Event of Default
         or Default shall have occurred or be continuing after giving effect to
         this Amendment.

                   (j) The Company shall have paid all reasonable out-of-pocket
         costs and expenses (including attorneys' fees) incurred by the Agent in
         connection with the preparation, execution and delivery hereof and the
         documents and transactions contemplated hereby.

                   (k) All other legal matters incident to the execution and
         delivery hereof contemplated hereby and to the transactions
         contemplated hereby shall be satisfactory to the Agent, the Required
         Banks and their respective counsel; and the Agent shall have received,
         for the account of the Banks, an opinion of the Borrowers' counsel with
         respect to this Amendment and the Collateral Documents, such opinion to
         be in form and substance reasonably acceptable to the Agent and the
         Required Banks.

Upon the satisfaction of the foregoing conditions precedent, this Amendment
shall take effect as of its date below.

SECTION 5.         REPRESENTATIONS REAFFIRMED.

         In order to induce the Agent and the Required Banks to execute and
deliver this Amendment, each Borrower hereby represents to the Agent and the
Banks that immediately after giving effect to this Amendment, each of the
representations and warranties by such Borrower set forth in Section 8 of the
Credit Agreement as amended hereby (except those representations that relate
expressly to an earlier date) are and shall be true and correct (except that the
representations contained in Section 8.4 shall be deemed to refer to the most
recent financial statements of the Borrower delivered to the Banks pursuant to
Section 10.5 of the Credit Agreement) and that such Borrower and the
Subsidiaries are and shall be in full compliance with the terms of the Credit
Agreement as so amended and the Loan Documents and that no Event of Default or
Default shall be continuing or shall result after giving effect to this
Amendment.

SECTION 6.         MISCELLANEOUS.

         This Amendment may be executed in any number of counterparts and by
different parties hereto on separate counterparts, each of which when so
executed shall be an original but all of which shall constitute one and the same
instrument. Except as specifically waived or amended hereby, all of the terms
and conditions of the Credit Agreement shall stand and remain unchanged and in
full force and effect. No reference to this Amendment need be made in any note,
instrument or other document making reference to the Credit Agreement, any
reference to the Credit Agreement in any such note, instrument or other document
(including, without limitation, the Loan Documents) to be deemed to be a
reference to the Credit Agreement as amended hereby.



                                      -23-

<PAGE>   24




         THIS INSTRUMENT SHALL BE CONSTRUED AND GOVERNED BY AND IN ACCORDANCE
WITH THE LAWS OF THE STATE OF ILLINOIS (WITHOUT REGARD TO PRINCIPLES OF
CONFLICTS OF LAWS).

                           [SIGNATURE PAGES TO FOLLOW]



                                      -24-

<PAGE>   25



         IN WITNESS WHEREOF, the Borrowers, the Guarantors and the Required
Banks have executed and delivered this Amendment as of the day and year below
written.

         Dated as of this 22nd day of December, 1999.

                                       TITAN INTERNATIONAL, INC.


                                       By /s/  Maurice M. Taylor, Jr.
                                         ----------------------------
                                            Its President & CEO


                                       TITAN INVESTMENT CORPORATION


                                       By /s/  Maurice M. Taylor, Jr.
                                         ----------------------------
                                            Its President & CEO


                                       TITAN CREDIT CORPORATION


                                       By /s/ Maurice M. Taylor, Jr.
                                         ----------------------------
                                            Its President & CEO



                                      -25-



<PAGE>   26



         Each of the undersigned consents to the above Amendment and
acknowledges and agrees that all of its obligations under Section 14 of the
Credit Agreement and under each relevant Guarantee Agreement dated as of
September 17, 1998 (collectively, the "Guaranty") remain in full force and
effect for the benefit and security of, among other things, the Credit Agreement
as modified hereby. Each of the undersigned further acknowledges and agrees that
all references in the Guaranty to the Credit Agreement shall be deemed a
reference to the Credit Agreement as amended hereby. Each of the undersigned
agrees to execute and deliver any and all instruments or documents as may be
required by the Agent or the Required Banks to confirm any of the foregoing.
Each of the undersigned agrees that its consent to this Amendment is not
required and that its consent to any further amendments of the Credit Agreement
shall not be required as a result of this consent having been obtained.


                                       TITAN DISTRIBUTION, INC.

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO


                                       TITAN WHEEL CORPORATION (to be known as
                                          Titan Marketing Services, Inc.)

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO


                                       TITAN WHEEL CORPORATION OF ILLINOIS

                                      By  /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO


                                       TITAN WHEEL CORPORATION OF IOWA

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO


                                       TITAN WHEEL CORPORATION OF WISCONSIN

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO


                                      -26-


<PAGE>   27



                                       TITAN WHEEL CORPORATION OF VIRGINIA

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO


                                       TITAN TIRE CORPORATION

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO



                                       TITAN TIRE CORPORATION OF TENNESSEE

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO


                                       AUTOMOTIVE WHEELS, INC.

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO



                                       DYNEER CORPORATION

                                       By /s/ Maurice M. Taylor, Jr.
                                         ---------------------------
                                            Its President & CEO


                                      -27-




<PAGE>   28



Accepted and agreed to.
                                      HARRIS TRUST AND SAVINGS BANK, in its
                                         individual capacity as a Bank and as
                                         Agent

                                      By /s/ James H. Colley
                                        ---------------------
                                         Its Vice President

                                      BANK ONE, NA (formerly known as The First
                                         National Bank of Chicago)

                                      By /s/ Ty Miller
                                        ---------------------
                                         Its Vice President

                                      BANK OF AMERICA, N.A. (formerly known as
                                         NationsBank, N.A.)

                                      By /s/ Steve Ahrenholz
                                        ---------------------
                                         Its Principal

                                      COMERICA BANK
                                      By /s/ Jeffrey E. Peck
                                        ---------------------
                                         Its Vice President

                                      SUNTRUST BANK, ATLANTA
                                       By
                                         Its
                                            ----------------------------------

                                      ABN AMRO BANK N.V.
                                     By /s/ David C. Sagers
                                        ---------------------
                                         Its Vice President

                                      By /s/ John M. Ellenwood
                                        ----------------------
                                         Its Group Vice President

                                      MICHIGAN NATIONAL BANK
                                      By /s/ Ralph P. Binggeser
                                        -----------------------
                                         Its Relationship Manager

                                      THE BANK OF NEW YORK
                                      By /s/ John M. Lokay, Jr
                                        ----------------------
                                         Its Vice President

                                      FIRSTAR BANK OF MILWAUKEE, N.A.
                                      By /s/ John R. Falb
                                        ---------------------
                                         Its Vice President


                                      -28-


<PAGE>   29


                                     ANNEX I

                                   SCHEDULE I

                            TITAN INTERNATIONAL, INC.

         COMPLIANCE CALCULATIONS FOR SEPTEMBER 17, 1998 CREDIT AGREEMENT

                    CALCULATIONS AS OF                , 19
                                       ---------------    --
================================================================================
<TABLE>
<S><C>

A.       MINIMUM EBITDA (SECTION 10.6)(1)

         1.       Consolidated Net Income
                  as defined                                                                           $
                                                                                                        ----------
         2.       Amounts deducted in arriving
                  at Consolidated Net Income
                  in respect of

                  (a)      Interest Expense                            $
                                                                        ----------------
                  (b)      Federal, foreign, state and local
                           income tax expense                          $
                                                                        ----------------
                  (c)      Depreciation and amortization               $
                                                                        ----------------
         3.       Sum of Lines 1, 2(a),
                  2(b) and 2(c)  ("EBITDA")                                                            $
                                                                                                        ----------
         4.       Line 3 must be greater than or equal to:
</TABLE>
<TABLE>
<CAPTION>

                        FROM AND INCLUDING           TO AND INCLUDING

                           <S>                         <C>                     <C>
                            10/1/1999                   12/31/1999               $ 5,000,000

                             1/1/2000                    3/31/2000               $14,000,000

                             1/1/2000                    6/30/2000               $31,000,000

                             1/1/2000                    9/30/2000               $45,000,000

                             1/1/2000                   12/31/2000               $59,000,000
</TABLE>
-------------------------------
(1)      Only applicable for calculation of compliance during fourth fiscal
         quarter 1999 and fiscal year 2000.


                                      -29-


<PAGE>   30


<TABLE>
<S><C>

         5.       Company is in compliance?
                  (Circle yes or no)                                                                      Yes/No
                                                                                                         ========
B.       MINIMUM TANGIBLE NET WORTH (SECTION 10.7)

         1.       $135,000,000                                                                        $135,000,000


         2.       Consolidated Net Income for each
                  fiscal year (commencing with the
                  year beginning on 1/1/98)                            $
                                                                        ----------------

         3.       50% of Line 2 amount                                                                 $
                                                                                                        ----------

         4.       Cash proceeds of public offering
                  (net of expenses as set forth
                  in Section 10.7)                                     $
                                                                        ----------------

         5.       75% of Line 4 amount                                                                $
                                                                                                       -----------
         6.       Sums of Lines 1, 3 and 5
                  ("Required Amount")                                                                 $
                                                                                                       -----------
         7.       Tangible Net Worth                                                                  $
                                                                                                       -----------

         8.       As set forth in Section 10.7,
                  Tangible Net Worth (Line 7) must
                  not be less than the Required
                  Amount (Line 6). Company is in
                  compliance? (Circle yes or no)                                                          Yes/No
                                                                                                         ========
C.       INTEREST COVERAGE (SECTION 10.8)(2)

         1.       EBITDA (from Line A3 above)                                                           $
                                                                                                         ---------
         2.       Interest Expense as defined                                                           $
                                                                                                         ---------
</TABLE>
--------------------------------
(2)        Not applicable until March 31, 2000.


                                      -30-
<PAGE>   31

<TABLE>

<S><C>
         3.       Ratio of EBITDA (Line 1) to
                  Interest Expense (Line 2)
                  ("Interest Coverage Ratio")                                                                   :1
                                                                                                       ===========
         4.       As listed in Section 10.8,
                  the Interest Coverage Ratio
                  must not be less than                                                                         :1
                                                                                                       ===========
         5.       Company is in compliance?
                  (Circle yes or no)                                                                      Yes/No
                                                                                                       ===========
D.       TOTAL FUNDED DEBT TO EBITDA (SECTION 10.9)(3)

         1.       Total Funded Debt as defined                                                         $
                                                                                                        ----------

         2.       EBITDA (from Line A3 above)                                                          $
                                                                                                        ----------

         3.       Ratio of Total Funded Debt
                  (Line 1) to EBITDA (Line 2)                                                                   :1
                                                                                                       ===========

         4.       As listed in Section 10.9,
                  the Line 3 Ratio must not
                  be more than                                                                               5.0:1
                                                                                                       ===========

         5.       Company is in compliance?
                  (Circle yes or no)                                                                      Yes/No
                                                                                                       ===========
E.       INVESTMENTS, LOANS, ADVANCES AND GUARANTIES (SECTION 10.10)

         1.       Investments, loans, advances and
                  guaranties not prohibited by
                  Section 10.10                                                                        $
                                                                                                        ----------
         2.       Company is in compliance?
                  (Circle yes or no)                                                                      Yes/No
                                                                                                       ===========
F.       INDEBTEDNESS (SECTION 10.11)

         1.       Indebtedness in respect of
                  judgments and awards
                  which have not been stayed
                  or appealed in accordance
                  with Section 10.11(d)                                  $
                                                                          ===========
</TABLE>


--------------------------------------

(3)      Not applicable from and including Second Amendment Effective Date to
         and including March 31, 2001





                                      -31-

<PAGE>   32

<TABLE>


        <S><C>
         2.       Is the amount of
                  Indebtedness listed
                  in Line 1 above in excess
                  of $4,000,000
                  (Circle yes or no)                                                                      Yes/No
                                                                                                       ===========
         3.       Subordinated Debt
                  of the Company outstanding                           $
                                                                        ===========

         4.       Is the outstanding Subordinated
                  Debt of the Company
                  less than $125,000,000
                  (Circle yes or no)                                                                      Yes/No
                                                                                                       ===========
         5.       Indebtedness outstanding
                  pursuant to Section 10.11(i)                         $
                                                                        ===========
         6.       Is the Indebtedness outstanding
                  pursuant to Section 10.11(i) in
                  excess of $75,000,000
                  (Circle yes or no)                                                                      Yes/No
                                                                                                       ===========
</TABLE>

G.       DIVIDENDS AND CERTAIN OTHER RESTRICTED EQUITY PAYMENTS
         (SECTION 10.13)
<TABLE>


        <S>                                                                           <C>
         1.       Check either (a) or (b)

                  (a)      The Company has not made any
                           Restricted Equity Payments (as defined
                           in Section 10.13) during the
                           period covered by this
                           Certificate
                                                                                        ----------
                                                                                          1(a)

                  (b)      The Company has made Restricted
                           Equity Payments during the period
                           covered by this Certificate
                                                                                        ----------
                                                                                          1(b)



                           (i)      Enter the aggregate amount of
                                    such Restricted Equity Payments                     $
                                                                                         ----------
                                                                                          1(b)(i)
</TABLE>






                                      -32-
<PAGE>   33

<TABLE>

        <S><C>
         2. If Line 1(b) is checked, complete the following:

            (a)      After making the Restricted Payments
                     referred to above, no Default or Event
                     of Default has occurred or is continuing
                     (Check either True or False)
                                                                          -----------      -----------
                                                                              True           *False

            (b)      Consolidated Net Income for the
                     period commencing 9/17/98 and
                     terminating at the last fiscal quarter
                     preceding the date of such
                     Restricted Payments                                          $
                                                                                   ----------
                                                                                      2(b)

            (c)      50% Line 2(b) amount                                         $
                                                                                   ----------
                                                                                      2(c)

            (d)      Aggregate amount of the Restricted
                     Payments (shown on Line 1(b)(i))
                     does not exceed the amount shown
                     on Line 2(c). (Check either
                     True or False)
                                                                          -----------      -----------
                                                                              True           *False
</TABLE>



*        If this item is checked, the Company has defaulted in its observance of
         the covenant set forth in Section 10.13 and triggered an Event of
         Default under Section 11.1(b).

<TABLE>
<S>                                                                                    <C>
H.       CAPITAL EXPENDITURES (SECTION 10.28)

         1.       Capital Expenditures for the relevant year                            $
                                                                                         ----------
                                                                                            H1

         2.       Capital Expenditures for preceding year                               $
                                                                                         ----------
                                                                                            H2

         3.       Amount (if any) by which $36,000,000
                  exceeds Line 2                                                        $
                                                                                         ----------
                                                                                            H3

         4.       Line H1 must not exceed sum of
                  $36,000,000 plus Line H3:                                             $
                                                                                         ----------
                                                                                            H4

         5.       Company is in compliance?                                                Yes/No
                                                                                         ==========
</TABLE>





                                      -33-


<PAGE>   34



                                    ANNEX II

                                    EXHIBIT M

                               SECURITY AGREEMENT

         This Security Agreement (the "Agreement") is dated as of December    ,
1999, by and among Titan International, Inc., an Illinois corporation (the
"Company"), Titan Investment and Titan Credit (the Company, Titan Investment and
Titan Credit being hereinafter referred to collectively as the "Borrowers" and
individually as a "Borrower"), and the other parties executing this Agreement
under the heading "Debtors" (the Borrowers and such other parties, along with
any parties who execute and deliver to the Agent an agreement substantially in
the form attached hereto as Schedule E, being hereinafter referred to
collectively as the "Debtors" and individually as a "Debtor"), each with its
mailing address c/o the Company at 2701 Spruce Street, Quincy, Illinois 62301,
and Harris Trust and Savings Bank, an Illinois banking corporation ("HTSB"),
with its mailing address at 111 West Monroe Street, Chicago, Illinois 60603,
acting as administrative agent hereunder for the Secured Creditors hereinafter
identified and defined (HTSB acting as such administrative agent and any
successor or successors to HTSB acting in such capacity being hereinafter
referred to as the "Agent");


                             PRELIMINARY STATEMENTS

          A.   The Borrowers and HTSB, individually and as Agent, have entered
into a Multicurrency Credit Agreement dated as of September 17, 1998 (such
Multicurrency Credit Agreement as the same may be amended or modified from time
to time, including amendments and restatements thereof in its entirety, being
hereinafter referred to as the "Credit Agreement"), pursuant to which HTSB and
such other banks and financial institutions from time to time party to the
Credit Agreement (HTSB, in its individual capacity, and such other banks and
financial institutions being hereinafter referred to collectively as the
"Lenders" and individually as a "Lender") have agreed, subject to certain terms
and conditions, to extend credit and make certain other financial accommodations
available to the Borrowers.

          B.   Each Borrower and the other Debtors may from time to time enter
into one or more agreements or financial agreements (collectively, the "Hedging
Agreements") with respect to, among other things, interest rate exchange, swap,
cap, collar, floor or other similar agreements and agreements and one or more
foreign currency contracts, currency swap contracts or other similar agreements
and agreements with one or more of the Lenders party to the Credit Agreement, or
their affiliates, for the purpose of hedging or otherwise protecting against
interest rate and foreign currency exposure (the obligation of each such
Borrower or Debtor in respect of such Hedging Agreements being hereinafter
referred to as the "Hedging Liability"). The Agent, the Lenders and such
affiliates of the Lenders being hereinafter referred to collectively as the
"Secured Creditors" and individually as a "Secured Creditor".

          C.   As a condition to extending, and continuing to extend, credit to
the Borrowers under the Credit Agreement or entering into any Hedging Agreement,
the Secured Creditors have



<PAGE>   35


required, among other things, that each Debtor grant to the Agent for the
benefit of the Secured Creditors a lien on and security interest in the personal
property of such Debtor described herein subject to the terms and conditions
hereof.

          D.   The Company owns, directly or indirectly, equity interests in
each other Debtor and the Company provides each other Debtor with financial,
management, administrative, and technical support which enables such Debtor to
conduct its business in an orderly and efficient manner in the ordinary course.

          E.   Each Debtor will benefit, directly or indirectly, from credit and
other financial accommodations extended by the Secured Creditors to the
Borrowers.

         NOW, THEREFORE, for and in consideration of the execution and delivery
by the Secured Creditors of the Credit Agreement, and other good and valuable
consideration, receipt whereof is hereby acknowledged, the parties hereto hereby
agree as follows:

           Section 1.  Terms defined in Credit Agreement. All capitalized terms
used herein without definition shall have the same meanings herein as such terms
have in the Credit Agreement. The term "Debtor" and "Debtors" as used herein
shall mean and include the Debtors collectively and also each individually, with
all grants, representations, warranties and covenants of and by the Debtors, or
any of them, herein contained to constitute joint and several grants,
representations, warranties and covenants of and by the Debtors; provided,
however, that unless the context in which the same is used shall otherwise
require, any grant, representation, warranty or covenant contained herein
related to the Collateral shall be made by each Debtor only with respect to the
Collateral owned by it or represented by such Debtor as owned by it.

           Section 2.  Grant of Security Interest in the Collateral; Obligations
Secured. (a) Each Debtor hereby grants to the Agent for the benefit of the
Secured Creditors a lien on and security interest in, and right of set-off
against, and acknowledges and agrees that the Agent has and shall continue to
have for the benefit of the Secured Creditors a continuing lien on and security
interest in, and right of set-off against, any and all right, title and interest
of each Debtor, whether now owned or existing or hereafter created, acquired or
arising, in and to the following:

                   (i)   Receivables. All Receivables, whether now owned or
         existing or hereafter created, acquired or arising, and however
         evidenced or acquired, or in which such Debtor now has or hereafter
         acquires any rights (the term "Receivables" means and includes (x) all
         accounts, accounts receivable, any right of such Debtor to payment for
         goods sold or leased or for services rendered, whether or not earned by
         performance, and all other forms of obligations owing to any Debtor,
         (y) (to the extent received in connection with the payment or
         settlement of any such account, account receivable, right to payment or
         obligation) all instruments, notes, drafts, acceptances, documents and
         chattel paper, and (z) all of any Debtor's rights to any merchandise or
         other goods (including without limitation any returned or repossessed
         goods and the right of stoppage in transit) which is represented by,
         arises from or is related to any of the foregoing);






                                   -2-
<PAGE>   36


                  (ii)  General Intangibles. All General Intangibles, whether
         now owned or existing or hereafter created, acquired or arising, or in
         which such Debtor now has or hereafter acquires any rights (the term
         "General Intangibles" means and includes (x) all contract rights and
         (y) (to the extent received in payment on or settlement of any
         Receivable) other general intangibles);

                 (iii)  Inventory. All Inventory, whether now owned or existing
         or hereafter created, acquired or arising, or in which such Debtor now
         has or hereafter acquires any rights and all documents of title at any
         time evidencing or representing any part thereof (the term "Inventory"
         means and includes all inventory and other goods which are held for
         sale or lease or are to be furnished under contracts of service or
         consumed in any Debtor's business, all goods which are raw materials,
         work-in-process, finished goods, materials or supplies of every kind
         and nature, in each case used or usable in connection with the
         acquisition, manufacture, processing, supply, servicing, storing,
         packing, shipping, advertising, selling, leasing or furnishing of such
         goods, and any constituents or ingredients thereof, and all goods which
         are returned or repossessed goods);

                  (iv)  Equipment. All Equipment, whether now owned or existing
         or hereafter created, acquired or arising, or in which such Debtor now
         has or hereafter acquires any rights (the term "Equipment" means and
         includes all equipment and other machinery (exclusive of vehicles and
         aircraft) and all other goods now or hereafter used or usable in
         connection with such Debtor's business, together with all parts,
         accessories and attachments relating to any of the foregoing);

                   (v)  Records. All supporting evidence and documents relating
         to any of the above-described property, including, without limitation,
         computer programs, disks, tapes and related electronic data processing
         media, and all rights of such Debtor to retrieve the same from third
         parties, written applications, credit information, account cards,
         payment records, correspondence, delivery and installation
         certificates, invoice copies, delivery receipts, notes and other
         evidences of indebtedness, insurance certificates and the like,
         together with all books of account, ledgers and cabinets in which the
         same are reflected or maintained, all whether now existing or hereafter
         arising;

                  (vi)  Accessions  and  Additions.  All accessions and
         additions to and substitutions and replacements of any and all of the
         foregoing, whether now existing or hereafter arising; and

                 (vii)  Proceeds and  Products.  All proceeds and products of
         the foregoing and all insurance of the foregoing and proceeds thereof,
         whether now existing or hereafter arising;

all of the foregoing being herein sometimes referred to as the "Collateral";
provided, however, that Collateral shall neither mean nor include (i) patents,
trademarks, tradenames, copyrights and similar intellectual property, (ii)
vehicles and aircraft and (iii) equipment or other fixed assets of Titan Tire
Corporation of Natchez if and so long as and to the extent that such
Subsidiary's title to such Property is the subject of bona fide dispute
regarding Condere Corporation's right to







                                      -3-

<PAGE>   37

transfer such Property to such Subsidiary. All terms which are used herein which
are defined in the Uniform Commercial Code of the State of Illinois ("UCC")
shall have the same meanings herein as such terms are defined in the UCC, unless
this Agreement shall otherwise specifically provide.

         (b)   This Agreement is made and given to secure, and shall secure, the
prompt payment and performance when due of (i) any and all indebtedness,
obligations and liabilities of the Debtors, and of any of them individually, to
the Secured Creditors, and to any of them individually, under or in connection
with or evidenced by the Credit Agreement or any other Loan Document, including,
without limitation all obligations evidenced by the Notes of the Borrowers
heretofore or hereafter issued under the Credit Agreement, all obligations of
the Borrowers to reimburse the Secured Creditors for the amount of all drawings
on all Letters of Credit issued pursuant to the Credit Agreement and all other
obligations of the Borrowers under any and all applications for Letters of
Credit, all obligations of the Debtors, and of any of them individually, arising
under or in connection with or otherwise evidenced by Hedging Agreements with
any one or more of the Secured Creditors or their affiliates with respect to any
Hedging Liability, and all obligations of the Debtors, and of any of them
individually, arising under any guaranty issued by it relating to the foregoing
or any part thereof, in each case whether now existing or hereafter arising (and
whether arising before or after the filing of a petition in bankruptcy and
including all interest accrued after the petition date), due or to become due,
direct or indirect, absolute or contingent, and howsoever evidenced, held or
acquired and (ii) any and all expenses and charges, legal or otherwise, suffered
or incurred by the Secured Creditors, and any of them individually, in
collecting or enforcing any of such indebtedness, obligations and liabilities or
in realizing on or protecting or preserving any security therefor, including,
without limitation, the lien and security interest granted hereby (all of the
indebtedness, obligations, liabilities, expenses and charges described above
being hereinafter referred to as the "Obligations"). Notwithstanding anything in
this Agreement to the contrary, the right of recovery against any Debtor under
this Agreement (other than the Borrowers to which this limitation shall not
apply) shall not exceed $1.00 less than the lowest amount which would render
such Debtor's obligations under this Agreement void or voidable under applicable
law, including fraudulent conveyance law.

           Section 3. Covenants, Agreements, Representations and Warranties. The
Debtors hereby covenant and agree with, and represent and warrant to, the
Secured Creditors that:

                   (a)   Each Debtor is duly organized, validly existing and in
         good standing under the laws of the state of its incorporation or
         organization, is the sole and lawful owner of the Collateral granted by
         it hereunder and has the power and authority to enter into this
         Agreement and to perform each and all of the matters and things herein
         provided for. Each Debtor's Federal tax identification number is set
         forth under its name under Column 1 on Schedule A.

                   (b)   Each Debtor's respective chief executive office is at
         the location listed under Column 2 on Schedule A attached hereto
         opposite such Debtor's name; and such Debtor has no other executive
         offices or places of business other than those listed under Column 3 on
         Schedule A attached hereto opposite such Debtor's name. The Collateral





                                      -4-
<PAGE>   38


         owned or leased by each Debtor is and shall remain in such Debtor's
         possession or control at the locations listed under Columns 2 and 3 on
         Schedule A attached hereto opposite such Debtor's name (collectively
         for each Debtor, the "Permitted Collateral Locations"), except for (i)
         Collateral which in the ordinary course of such Debtor's business is in
         transit between Permitted Collateral Locations and (ii) Collateral
         aggregating less than $1,000,000 in fair market value outstanding at
         any one time. If for any reason any Collateral is at any time kept or
         located at a location other than a Permitted Collateral Location, the
         Agent shall nevertheless have and retain a lien on and security
         interest therein. No Debtor shall move its chief executive office or
         maintain a place of business at a location other than those specified
         under Columns 2 or 3 on Schedule A or permit any Collateral to be
         located at a location other than a Permitted Collateral Location, in
         each case without first providing the Agent at least 30 days prior
         written notice of the Debtor's intent to do so; provided that each
         Debtor shall at all times maintain its chief executive office, places
         of business, and Permitted Collateral Locations in the United States of
         America and, with respect to any new chief executive office or place of
         business or location of Collateral, such Debtor shall have taken all
         action reasonably requested by the Agent to maintain the lien and
         security interest of the Agent in the Collateral at all times fully
         perfected and in full force and effect.

                   (c)   The Collateral and every part thereof is and shall be
         free and clear of all security interests, liens (including, without
         limitation, mechanics', laborers' and statutory liens), attachments,
         levies and encumbrances of every kind, nature and description and
         whether voluntary or involuntary, except for the lien and security
         interest of the Agent therein and other Liens permitted by Section
         10.12 of the Credit Agreement (herein, the "Permitted Liens"). Each
         Debtor shall warrant and defend the Collateral against any claims and
         demands of all persons at any time claiming the same or any interest in
         the Collateral adverse to any of the Secured Creditors.

                   (d)   Each Debtor will promptly pay when due all taxes,
         assessments and governmental charges and levies upon or against it or
         its Collateral, in each case before the same become delinquent and
         before penalties accrue thereon, unless and to the extent that the same
         are being contested in good faith by appropriate proceedings which
         prevent attachment of any Lien resulting therefrom to, foreclosure on
         or other realization upon any Collateral and preclude interference with
         the operation of its business in the ordinary course and such Debtor
         shall have established adequate reserves therefor.

                   (e)   Each Debtor agrees it will not waste or destroy the
         Collateral or any part thereof and will not be negligent in the care or
         use of any Collateral. Each Debtor agrees it will not use, manufacture,
         sell or distribute any Collateral in violation of any statute,
         ordinance or other governmental requirement. Each Debtor will perform
         in all material respects its obligations under any contract or other
         agreement constituting part of the Collateral, it being understood and
         agreed that the Secured Creditors have no responsibility to perform
         such obligations.

                   (f)   Subject to Sections 4(d), 5(a), 6(b), 6(c), and 7(c)
         hereof and the terms of the Credit Agreement (including, without
         limitation, Section 10.14 thereof), each Debtor






                                      -5-
<PAGE>   39



         agrees it will not, without the Agent's prior written consent, sell,
         assign, mortgage, lease, or otherwise dispose of the Collateral or any
         interest therein.

                   (g)   Each Debtor will insure its Collateral which is
         insurable against such risks and hazards as other companies similarly
         situated insure against, and including in any event loss or damage by
         fire, theft, burglary, pilferage, and loss in transit, in amounts and
         under policies containing loss payable clauses to the Agent as its
         interest may appear (and, if the Agent requests, naming the Agent as
         additional insureds therein) by insurers reasonably acceptable to the
         Agent. All premiums on such insurance shall be paid by the Debtors and
         the policies of such insurance (or certificates therefor) delivered to
         the Agent. All insurance required hereby shall provide that any loss
         shall be payable notwithstanding any act or negligence of the relevant
         Debtor, shall provide that no cancellation thereof shall be effective
         until at least 30 days after receipt by the relevant Debtor and the
         Agent of written notice thereof, and shall be reasonably satisfactory
         to the Agent in all other respects. In case of any material loss,
         damage to or destruction of the Collateral or any part thereof, the
         relevant Debtor shall promptly give written notice thereof to the Agent
         generally describing the nature and extent of such damage or
         destruction. In case of any loss, damage to or destruction of the
         Collateral or any part thereof, the relevant Debtor, whether or not the
         insurance proceeds, if any, received on account of such damage or
         destruction shall be sufficient for that purpose, at such Debtor's cost
         and expense, will promptly repair or replace the Collateral so lost,
         damaged or destroyed, except to the extent such Collateral is not
         necessary to the conduct of such Debtor's business in the ordinary
         course. Each Debtor hereby authorizes the Agent, at the Agent's option,
         to adjust, compromise and settle any losses under any insurance
         afforded at any time after the occurrence and during the continuation
         of any Default or Event of Default, and such Debtor does hereby
         irrevocably constitute the Agent, its officers, agents and attorneys,
         as such Debtor's attorneys-in-fact, with full power and authority after
         the occurrence and during the continuation of any Default or Event of
         Default to effect such adjustment, compromise and/or settlement and to
         endorse any drafts drawn by an insurer of the Collateral or any part
         thereof and to do everything necessary to carry out such purposes and
         to receive and receipt for any unearned premiums due under policies of
         such insurance. Unless the Agent elects to adjust, compromise or settle
         losses as aforesaid, any adjustment, compromise and/or settlement of
         any losses under any insurance shall be made by the relevant Debtor
         subject to final approval of the Agent (regardless of whether or not an
         Event of Default shall have occurred) in the case of losses exceeding
         $10,000,000. All insurance proceeds shall be subject to the lien and
         security interest of the Agent hereunder.

                   (h)   Each Debtor will at all times allow the Secured
         Creditors and their respective representatives free access to and right
         of inspection of the Collateral at such reasonable times and intervals
         as the Agent or any other Secured Creditor may designate and, in the
         absence of any existing Default or Event of Default, with reasonable
         prior written notice to the relevant Debtor and without unreasonable
         interference with the Debtor's conduct of its business in the ordinary
         course.




                                      -6-
<PAGE>   40


                   (i)   If any Collateral is in the possession or control of
         any agents or processors of a Debtor and the Agent so requests, such
         Debtor agrees to notify such agents or processors in writing of the
         Agent's security interest therein and instruct them to hold all such
         Collateral for the Agent's account and subject to the Agent's
         instructions. Each Debtor will, upon the request of the Agent,
         authorize and instruct all bailees and any other parties, if any, at
         any time processing, labeling, packaging, holding, storing, shipping or
         transferring all or any part of the Collateral to permit the Secured
         Creditors and their respective representatives to examine and inspect
         any of the Collateral then in such party's possession and to verify
         from such party's own books and records any information concerning the
         Collateral or any part thereof which the Secured Creditors or their
         respective representatives may seek to verify. As to any premises not
         owned by a Debtor wherein any of the Collateral is located, if any,
         such Debtor shall, upon the Agent's request, cause each party having
         any right, title or interest in, or lien on, any of such premises to
         enter into an agreement (any such agreement to contain a legal
         description of such premises) whereby such party disclaims any right,
         title and interest in, and lien on, the Collateral, allowing the
         removal of such Collateral by the Agent or its agents or
         representatives and otherwise in form and substance reasonably
         acceptable to the Agent; provided, however, that no such agreement need
         be obtained with respect to any one location wherein the value of such
         Collateral as to which such agreement has not been obtained aggregates
         less than $1,000,000 at any one time.

                   (j)   Upon the Agent's reasonable request, each Debtor agrees
         from time to time to deliver to the Agent such evidence of the
         existence, identity and location of its Collateral and of its
         availability as collateral security pursuant hereto, in each case as
         such Secured Creditor may reasonably request. The Agent shall have the
         right to verify all or any part of the Collateral in any manner, and
         through any medium, which the Agent considers appropriate and
         reasonable, and each Debtor agrees to furnish all assistance and
         information, and perform any acts, which the Agent may require in
         connection therewith.

                   (k)   Each Debtor will comply in all material respects with
         the terms and conditions of any and all leases, easements, right-of-way
         agreements and other agreements binding upon such Debtor or affecting
         the Collateral, in each case which cover the premises wherein the
         Collateral is located, and any orders, ordinances, laws or statutes of
         any city, state or other governmental entity, department or agency
         having jurisdiction with respect to such premises or the conduct of
         business thereon.

                   (l)   Since the date occurring five (5) years prior to the
         date hereof, no Debtor has invoiced Receivables or otherwise transacted
         business, and does not invoice Receivables or otherwise transact
         business, under any trade names other than its name set forth on its
         signature page to this Agreement or names containing "Titan Wheel" or
         names (which are no longer used) associated with any immaterial,
         discontinued businesses or as otherwise set forth on Schedule B hereto.
         Each Debtor agrees it will not change its name or transact business
         under any other trade name, in each case without first giving the Agent
         at least 30 days prior written notice of its intent to do so.




                                      -7-

<PAGE>   41

                   (m)   Each Debtor agrees to execute and deliver to the Agent
         such further agreements, assignments, instruments and documents, and to
         do all such other things, as the Agent may reasonably deem necessary or
         appropriate to assure the Agent its lien and security interest
         hereunder, including without limitation, executing such financing
         statements or other instruments and documents as the Agent may from
         time to time reasonably require to comply with the UCC and any other
         applicable law. Each Debtor hereby agrees that a carbon, photographic
         or other reproduction of this Agreement or any such financing statement
         is sufficient for filing as a financing statement or effective
         financing statement by the Agent without prior notice thereof to such
         Debtor wherever the Agent deems necessary or desirable to perfect or
         protect the security interest granted hereby. In the event for any
         reason the law of any jurisdiction other than Illinois becomes or is
         applicable to the Collateral or any part thereof, or to any of the
         Obligations, each Debtor agrees to execute and deliver all such
         instruments and documents and to do all such other things as the Agent
         deems necessary or appropriate to preserve, protect and enforce the
         security interest of the Agent under the law of such other
         jurisdiction.

                   (n)   On failure of a Debtor to perform any of the covenants
         and agreements herein contained, the Agent may, at its option, perform
         the same and in so doing may expend such sums as the Agent deems
         advisable in the performance thereof, including, without limitation,
         the payment of any insurance premiums, the payment of any taxes, liens
         and encumbrances, expenditures made in defending against any adverse
         claims, and all other expenditures which the Agent may be compelled to
         make by operation of law or which the Agent may make by agreement or
         otherwise for the protection of the security hereof. All such sums and
         amounts so expended shall be repayable by such Debtor immediately upon
         demand, shall constitute additional Obligations secured hereunder, and
         shall bear interest from the date said amounts are expended at the rate
         per annum (computed on the basis of a year of 360 days and actual days
         elapsed) determined by adding 2% to the Domestic Rate from time to time
         in effect plus the Applicable Margin for Domestic Rate Loans under the
         Revolving Credit, with any change in such rate per annum as so
         determined by reason of a change in such Domestic Rate to be effective
         on the date of such change in said Domestic Rate (such rate per annum
         as so determined being hereinafter referred to as the "Default Rate").
         No such performance of any covenant or agreement by the Agent on behalf
         of a Debtor, and no such advancement or expenditure therefor, shall
         relieve any Debtor of any default under the terms of this Agreement or
         in any way obligate any Secured Creditor to take any further or future
         action with respect thereto. The Agent in making any payment hereby
         authorized may do so according to any bill, statement or estimate
         procured from the appropriate public office or holder of the claim to
         be discharged without inquiry into the accuracy of such bill, statement
         or estimate or into the validity of any tax assessment, sale,
         forfeiture, tax lien or title or claim. The Agent in performing any act
         hereunder shall be the sole judge of whether the relevant Debtor is
         required to perform the same under the terms of this Agreement. The
         Agent is hereby authorized to charge any depository or other account of
         any Debtor maintained with any Secured Creditor for the amount of such
         sums and amounts so expended.




                                      -8-


<PAGE>   42


           Section 4.    Special  Provisions Re:  Receivables.  (a) As of the
time any Receivable becomes subject to the security interest provided for hereby
and at all times thereafter, each Debtor shall be deemed to have warranted as to
each and all of its Receivables that all warranties of such Debtor set forth in
this Agreement are true and correct with respect to each such Receivable; that
each of its Receivable and all papers and documents relating thereto are genuine
and in all respects what they purport to be; that each of its Receivable is
valid and existing and, if such Receivable is an account, arises out of a
bonafide sale or lease of goods sold or leased and delivered by such Debtor to,
or in the process of being delivered to, or out of and for services theretofore
actually rendered by such Debtor to, the account debtor named therein; and,
except as disclosed to the Agent in writing, that no surety bond was required or
given in connection with such Receivable or the contracts or purchase orders out
of which the same arose.

         (b) To the extent any Receivables or other item of Collateral is
evidenced by an instrument or chattel paper, each Debtor shall cause such
instrument to be pledged and delivered to the Agent; provided, however, that,
prior to the existence of a Default or Event of Default and thereafter until
otherwise required by the Agent, a Debtor shall not be required to deliver any
such instrument or chattel paper if and only so long as the aggregate unpaid
principal balance of all such instruments and chattel paper held by the Debtors
and not delivered to the Agent under the Collateral Documents is less than
$1,000,000 at any one time outstanding.

         (c) If any Receivable arises out of a contract with the United States
of America or any of its departments, agencies or instrumentalities, the
relevant Debtor agrees to, at the request of the Agent, execute whatever
instruments and documents are required by the Agent in order that such
Receivable shall be assigned to the Agent and that proper notice of such
assignment shall be given under the federal Assignment of Claims Act (or any
successor statute) or any similar statute relating to the assignment of such
Receivables; provided, however, that no such instruments and documents need be
executed so long as no Default or Event of Default has occurred and is
continuing.

         (d) Unless and until an Event of Default hereunder occurs and is
continuing, any merchandise or other goods which are returned by a customer or
account debtor or otherwise recovered may be resold by the relevant Debtor in
the ordinary course of its business as presently conducted in accordance with
Section 6(b) hereof; upon the occurrence and during the continuation of any
Event of Default hereunder, such merchandise and other goods shall be set aside
at the request of the Agent and held by such Debtor as trustee for the Secured
Creditors and shall remain part of the Collateral. Unless and until an Event of
Default hereunder occurs and is continuing, the relevant Debtor may settle and
adjust disputes and claims with its customers and account debtors, handle
returns and recoveries and grant discounts, credits and allowances in the
ordinary course of its business as presently conducted for amounts and on terms
which such Debtor in good faith considers advisable. Upon the occurrence and
during the continuation of any Event of Default hereunder, at the request of the
Agent, each Debtor shall notify the Agent promptly of all returns and recoveries
and at the Agent's request deliver any such merchandise or other goods to the
Agent. Upon the occurrence and during the continuation of any Event of Default
hereunder, at the Agent's request, each Debtor shall also notify the Agent
promptly of all disputes and claims and settle or adjust them at no expense to
the Secured Creditors hereunder, but no discount, credit or allowance other than
on normal trade terms in the ordinary course of



                                      -9-

<PAGE>   43

business as presently conducted shall be granted to any customer or account
debtor and no returns of merchandise or other goods shall be accepted by any
Debtor without the Agent's consent. The Agent may, at all times upon the
occurrence and during the continuation of any Event of Default hereunder, settle
or adjust disputes and claims directly with customers or account debtors for
amounts and upon terms which the Agent considers advisable.

           Section 5.   Collection of Receivables. (a) Except as otherwise
provided in this Agreement, each Debtor shall make collection of all of its
Receivables and may use the same to carry on its business in accordance with
sound business practice and otherwise subject to the terms hereof.

           (b)   Upon the occurrence and during the continuation of any Default
or Event of Default, whether or not the Agent has exercised any or all of its
rights under the other provisions of this Section 5, upon the Agent's request,
each Debtor hereby agrees that:

                   (i)   all instruments and chattel paper at any time
         constituting part of the Receivables (including any postdated checks)
         shall, upon receipt by such Debtor, be immediately endorsed to and
         deposited with Agent; and

                  (ii)   such Debtor shall instruct all of its customers and
         account debtors to remit all payments in respect of its Receivables to
         a lockbox or lockboxes under the sole custody and control of Agent and
         which are maintained at post offices selected by the Agent.

           (c)   Upon the occurrence and during the continuation of any Event
of Default hereunder, whether or not the Agent has exercised any or all of its
rights under the other provisions of this Section 5, the Agent or its designee
may notify the relevant Debtor's customers and account debtors at any time that
Receivables have been assigned to the Agent or of the Agent's security interest
therein, and either in its own name, or such Debtor's name, or both, demand,
collect (including, without limitation, through a lockbox analogous to that
described in Section 5(b)(ii) hereof), receive, receipt for, sue for, compound
and give acquittance for any or all amounts due or to become due on Receivables,
and in the Agent's discretion file any claim or take any other action or
proceeding which the Agent may deem necessary or appropriate to protect and
realize upon the security interest of the Agent in the Receivables.

           (d)   Any proceeds of Receivables or other Collateral transmitted to
or otherwise received by the Agent pursuant to any of the provisions of Sections
5(b) or 5(c) hereof may be handled and administered by the Agent in and through
a remittance account or accounts maintained at the Agent or by the Agent at a
commercial bank or banks selected by the Agent (collectively the "Depositary
Banks" and individually a "Depositary Bank"), and each Debtor acknowledges that
the maintenance of such remittance accounts by the Agent is solely for the
Agent's convenience and that the Debtors do not have any right, title or
interest in such remittance accounts or any amounts at any time standing to the
credit thereof. In the absence of any Default or Event of Default, the proceeds
of Receivables and such other Collateral shall be made available to the relevant
Debtor in accordance with Section 6.1 of the Credit Agreement; and during the
existence of any Default or Event of Default, the Agent may apply all or any
part of any proceeds of





                                      -10-


<PAGE>   44

Receivables or other Collateral received by it from any source to the payment of
the Obligations (whether or not then due and payable), such applications to be
made in such amounts, in such manner and order and at such intervals as the
Agent may from time to time in its discretion determine in accordance with the
terms of the Credit Agreement. The Agent need not apply or give credit for any
item included in proceeds of Receivables or other Collateral until the
Depositary Bank has received final payment therefor at its office in cash or
final solvent credits current at the site of deposit acceptable to the Agent and
the Depositary Bank as such. However, if the Agent does permit credit to be
given for any item prior to a Depositary Bank receiving final payment therefor
and such Depositary Bank fails to receive such final payment or an item is
charged back to the Agent or any Depositary Bank for any reason, the Agent may
at its election in either instance charge the amount of such item back against
any such remittance accounts or any depository account of any Debtor maintained
with any Secured Creditor, together with interest thereon at the Default Rate.
Concurrently with each transmission of any proceeds of Receivables or other
Collateral to any such remittance account, upon the Agent's request, the
relevant Debtor shall furnish the Agent with a report in such form as Agent
shall reasonably require identifying the particular Receivable or such other
Collateral from which the same arises or relates. Each Debtor hereby indemnifies
the Secured Creditors from and against all liabilities, damages, losses,
actions, claims, judgments, and all reasonable costs, expenses, charges and
attorneys' fees suffered or incurred by any Secured Creditor because of the
maintenance of the foregoing arrangements; provided, however, that no Debtor
shall be required to indemnify any Secured Creditor for any of the foregoing to
the extent they arise solely from the gross negligence or willful misconduct of
the person seeking to be indemnified.

           Section 6.   Special  Provisions  Re:  Inventory.  (a) Each  Debtor
shall at its own cost and expense maintain, keep and preserve its Inventory in
good and merchantable condition and keep and preserve its Equipment in good
repair, working order and condition, ordinary wear and tear excepted, and,
without limiting the foregoing, make all necessary and proper repairs,
replacements and additions to its Equipment so that the efficiency thereof shall
be fully preserved and maintained.

           (b)   Each Debtor may, until an Event of Default has occurred and is
continuing and thereafter until otherwise notified by the Agent, use, consume,
sell and lease the Inventory in the ordinary course of its business, but a sale
in the ordinary course of business shall not under any circumstance include any
transfer or sale in satisfaction, partial or complete, of a debt owing by such
Debtor.

           (c)   As of the time any Inventory of a Debtor becomes subject to the
security interest provided for hereby and at all times thereafter, such Debtor
shall be deemed to have warranted as to any and all of such Inventory that all
warranties of such Debtor set forth in this Agreement are true and correct with
respect to such Inventory; that all of such Inventory is located at a location
permitted by Section 3(b) hereof. The Debtors warrant and agree that the amount
of Inventory on consignment to any other person or entity will not exceed
$9,000,000 in the aggregate without the Agent's prior written consent.

           (d)   If any of the Inventory is at any time evidenced by a document
of title, such document shall be promptly delivered by the relevant Debtor to
the Agent.






                                      -11-

<PAGE>   45


           Section 7.   Special  Provisions  Re:  Equipment.  (a) Each  Debtor
may, until an Event of Default has occurred and is continuing and thereafter
until otherwise notified by the Agent, sell Equipment to the extent permitted by
Section 10.14 of the Credit Agreement.

           (b)   As of the time any Equipment of a Debtor becomes subject to the
security interest provided for hereby and at all times thereafter, such Debtor
shall be deemed to have warranted as to any and all of such Equipment that all
warranties of such Debtor set forth in this Agreement are true and correct with
respect to such Equipment and that all of such Equipment is located at a
location set forth pursuant to Section 3(b) hereof.

           (c)   Except for (i) Equipment from time to time located on real
estate owned by any Debtor, (ii) Equipment from time to time located on the real
estate described on Schedule C attached hereto, (iii) Equipment located
elsewhere as hereafter disclosed to the Agent in writing and (iv) Equipment
aggregating less than $9,000,000 in value, none of the Equipment is or will be
attached to real estate in such a manner that the same may become a fixture.

           Section 8.   Power of Attorney. In addition to any other powers of
attorney contained herein, each Debtor hereby appoints the Agent, its nominee,
or any other person whom the Agent may designate as such Debtor's
attorney-in-fact, with full power during the existence of any Default or Event
of Default to sign such Debtor's name on verifications of accounts and other
Collateral; to send requests for verification of Collateral to such Debtor's
customers, account debtors and other obligors; to endorse such Debtor's name on
any checks, notes, acceptances, money orders, drafts and any other forms of
payment or security that may come into the Agent's possession; to endorse the
Collateral in blank or to the order of the Agent or its nominee; to sign such
Debtor's name on any invoice or bill of lading relating to any Collateral, on
claims to enforce collection of any Collateral, on notices to and drafts against
customers and account debtors and other obligors, on schedules and assignments
of Collateral, on notices of assignment and on public records; to notify the
post office authorities to change the address for delivery of such Debtor's mail
to an address designated by the Agent; to receive, open and dispose of all mail
addressed to such Debtor; and to do all things necessary to carry out this
Agreement. Each Debtor hereby ratifies and approves all acts of any such
attorney and agrees that neither the Agent nor any such attorney will be liable
for any acts or omissions nor for any error of judgment or mistake of fact or
law other than such person's gross negligence or willful misconduct. The Agent
may file one or more financing statements and/or effective financing statements
disclosing its security interest in any or all of the Collateral without any
Debtor's signature appearing thereon, and each Debtor also hereby grants the
Agent a power of attorney to execute any such financing statements and/or
effective financing statements, or amendments and supplements to financing
statements and/or effective financing statements, on behalf of such Debtor
without notice thereof to any Debtor. The foregoing powers of attorney, being
coupled with an interest, are irrevocable until the Obligations have been fully
paid and satisfied and the commitments of the Lenders to extend credit to or for
the account of the Borrowers under the Credit Agreement have expired or
otherwise terminated; provided, however, that the Agent agrees, as a covenant to
each Debtor, not to exercise the powers of attorney set forth in this Section 8
unless a Default or Event of Default exists.





                                      -12-
<PAGE>   46

         Section 9. Defaults and Remedies. (a) The occurrence of any event or
the existence of any condition which is specified as an "Event of Default" under
the Credit Agreement shall constitute an "Event of Default" hereunder.

         (b) Upon the occurrence and during the continuation of any Event of
Default, the Agent shall have, in addition to all other rights provided herein
or by law, the rights and remedies of a secured party under the UCC (regardless
of whether the UCC is the law of the jurisdiction where the rights or remedies
are asserted and regardless of whether the UCC applies to the affected
Collateral), and further the Agent may, without demand and, to the extent
permitted by applicable law, without advertisement, notice, hearing or process
of law, all of which each Debtor hereby waives to the extent permitted by
applicable law, at any time or times, sell and deliver any or all Collateral
held by or for it at public or private sale, at any securities exchange or
broker's board or at any Secured Creditor's office or elsewhere, for cash, upon
credit or otherwise, at such prices and upon such terms as the Agent deems
advisable, in its sole discretion. In the exercise of any such remedies, the
Agent may sell the Collateral as a unit even though the sales price thereof may
be in excess of the amount remaining unpaid on the Obligations. Also, if less
than all the Collateral is sold, the Agent shall have no duty to marshal or
apportion the part of the Collateral so sold as between the Debtors, or any of
them, but may sell and deliver any or all of the Collateral without regard to
which of the Debtors are the owners thereof. In addition to all other sums due
any Secured Creditor hereunder, each Debtor shall pay the Secured Creditors all
costs and expenses incurred by the Secured Creditors, including reasonable
attorneys' fees and court costs, in obtaining, liquidating or enforcing payment
of Collateral or the Obligations or in the prosecution or defense of any action
or proceeding by or against any Secured Creditor or any Debtor concerning any
matter arising out of or connected with this Agreement or the Collateral or the
Obligations, including, without limitation, any of the foregoing arising in,
arising under or related to a case under the United States Bankruptcy Code (or
any successor statute). Any requirement of reasonable notice shall be met if
such notice is personally served on or mailed, postage prepaid, to the Debtors
in accordance with Section 14(b) hereof at least 10 days before the time of sale
or other event giving rise to the requirement of such notice; provided, however,
no notification need be given to a Debtor if such Debtor has signed, after an
Event of Default hereunder has occurred, a statement renouncing any right to
notification of sale or other intended disposition. The Agent shall not be
obligated to make any sale or other disposition of the Collateral regardless of
notice having been given. To the extent permitted by applicable law, any Secured
Creditor may be the purchaser at any such sale. Each Debtor hereby waives all of
its rights of redemption from and after any such sale. The Agent may postpone or
cause the postponement of the sale of all or any portion of the Collateral by
announcement at the time and place of such sale, and such sale may, without
further notice, be made at the time and place to which the sale was postponed or
the Agent may further postpone such sale by announcement made at such time and
place. In the event any of the Collateral shall constitute restricted securities
within the meaning of any applicable securities laws, any disposition thereof in
compliance with such laws shall not render the disposition commercially
unreasonable.

         (c) Without in any way limiting the foregoing, upon the occurrence and
during the continuation of any Event of Default hereunder, the Agent shall have
the right, in addition to all other rights provided herein or by law, to take
physical possession of any and all of the Collateral

                                       -13-
<PAGE>   47

and anything found therein, the right for that purpose to enter without legal
process any premises where the Collateral may be found (provided such entry be
done lawfully), and the right to maintain such possession on the relevant
Debtor's premises (each Debtor hereby agreeing, to the extent it may lawfully do
so, to lease such premises without cost or expense to the Agent or its designee
if the Agent so requests) or to remove the Collateral or any part thereof to
such other places as the Agent may desire. Upon the occurrence and during the
continuation of any Event of Default hereunder, the Agent shall have the right
to exercise any and all rights with respect to deposit accounts of each Debtor
maintained with any Secured Creditor, including, without limitation, the right
to collect, withdraw and receive all amounts due or to become due or payable
under each such deposit account. Upon the occurrence and during the continuation
of any Event of Default hereunder, each Debtor shall, upon the Agent's demand,
assemble the Collateral and make it available to the Agent at a place reasonably
designated by the Agent. If the Agent exercises its right to take possession of
the Collateral, each Debtor shall also at its expense perform any and all other
steps requested by the Agent to preserve and protect the security interest
hereby granted in the Collateral, such as placing and maintaining signs
indicating the security interest of the Agent, appointing overseers for the
Collateral and maintaining Collateral records.

         (d) Without in any way limiting the foregoing, each Debtor hereby
grants to the Secured Creditors a royalty-free irrevocable license and right to
use all of such Debtor's patents, patent applications, patent licenses,
trademarks, trademark registrations, trademark licenses, trade names, trade
styles, and similar intangibles in connection with any foreclosure or other
realization by the Agent or the Secured Creditors on all or any part of the
Collateral to the extent permitted by law. The license and right granted the
Secured Creditors hereby shall be without any royalty or fee or charge
whatsoever.

         (e) Failure by the Agent to exercise any right, remedy or option under
this Agreement or any other agreement between any Debtor and the Agent or
provided by law, or delay by the Agent in exercising the same, shall not operate
as a waiver; and no waiver shall be effective unless it is in writing, signed by
the party against whom such waiver is sought to be enforced and then only to the
extent specifically stated. Neither any Secured Creditor, nor any party acting
as attorney for any Secured Creditor, shall be liable hereunder for any acts or
omissions or for any error of judgment or mistake of fact or law other than
their gross negligence or willful misconduct. The rights and remedies of the
Secured Creditors under this Agreement shall be cumulative and not exclusive of
any other right or remedy which any Secured Creditor may have.

          Section 10. Application of Proceeds. The proceeds and avails of the
Collateral at any time received by the Agent upon the occurrence and during the
continuation of any Event of Default shall, when received by the Agent in cash
or its equivalent, be applied by the Agent in reduction of, or held as
collateral security for, the Obligations in accordance with the terms of the
Credit Agreement. The Debtors shall remain liable to the Secured Creditors for
any deficiency. Any surplus remaining after the full payment and satisfaction of
the Obligations shall be returned to the Company, as agent for the Debtors, or
to whomsoever the Agent reasonably determines is lawfully entitled thereto.

                                       -14-
<PAGE>   48

          Section 11. Continuing Agreement. This Agreement shall be a continuing
agreement in every respect and shall remain in full force and effect until all
of the Obligations, both for principal and interest, have been fully paid and
satisfied and the commitments of the Lenders to extend credit to or for the
account of the Borrowers under the Credit Agreement have expired or otherwise
terminated. Upon such termination of this Agreement, the Agent shall, upon the
request and at the expense of the Debtors, forthwith release its security
interest hereunder.

          Section 12. Primary Security; Obligations Absolute. The lien and
security interest herein created and provided for stand as direct and primary
security for the Obligations of the Borrowers arising under or otherwise
relating to the Credit Agreement as well as for any of the other Obligations
secured hereby. No application of any sums received by the Secured Creditors in
respect of the Collateral or any disposition thereof to the reduction of the
Obligations or any part thereof shall in any manner entitle any Debtor to any
right, title or interest in or to the Obligations or any collateral or security
therefor, whether by subrogation or otherwise, unless and until all Obligations
have been fully paid and satisfied and all agreements of the Secured Creditors
to extend credit to or for the account of the Borrowers under the Credit
Agreement have expired or otherwise terminated. Each Debtor acknowledges that
the lien and security interest hereby created and provided are absolute and
unconditional and shall not in any manner be affected or impaired by any acts of
omissions whatsoever of any Secured Creditor or any other holder of any
Obligations, and without limiting the generality of the foregoing, the lien and
security interest hereof shall not be impaired by any acceptance by the Secured
Creditors or any other holder of any Obligations of any other security for or
guarantors upon any of the Obligations or by any failure, neglect or omission on
the part of any Secured Creditor or any other holder of any Obligations to
realize upon or protect any of the Obligations or any collateral or security
therefor (including, without limitation, impairment of collateral or failure to
perfect security interest in collateral). The lien and security interest hereof
shall not in any manner be impaired or affected by (and the Secured Creditors,
without notice to anyone, except to the extent the Credit Agreement shall
otherwise provide, are hereby authorized to make from time to time) any sale,
pledge, surrender, compromise, settlement, release, renewal, extension,
indulgence, alteration, substitution, exchange, change in, modification or
disposition of any of the Obligations or of any collateral or security therefor,
or of any guaranty thereof, or of any instrument or agreement setting forth the
terms and conditions pertaining to any of the foregoing. The Secured Creditors
may at their discretion at any time grant credit to the Borrowers or any of them
without notice to the other Debtors in such amounts and on such terms as the
Secured Creditors may elect (all of such to constitute additional Obligations
hereby secured) without in any manner impairing the lien and security interest
created and provided for herein. In order to realize hereon and to exercise the
rights granted the Secured Creditors hereunder and under applicable law, there
shall be no obligation on the part of any Secured Creditor or any other holder
of any Obligations at any time to first resort for payment to the Borrowers or
to any other Debtor or to any guaranty of the Obligations or any portion thereof
or to resort to any other collateral, security, property, liens or any other
rights or remedies whatsoever, and the Secured Creditors shall have the right to
enforce this Agreement against any Debtor or any of its Collateral irrespective
of whether or not other proceedings or steps seeking resort to or realization
upon or from any of the foregoing are pending.

                                      -15-
<PAGE>   49

          Section 13. The Agent. In acting under or by virtue of this Agreement,
the Agent shall be entitled to all the rights, authority, privileges and
immunities provided in the Credit Agreement, all of which provisions of said
Credit Agreement (including, without limitation, Section 13 thereof) are
incorporated by reference herein with the same force and effect as if set forth
herein in their entirety. The Agent hereby disclaims any representation or
warranty to the other Secured Creditors or any other holders of the Obligations
concerning the perfection of the liens and security interests granted hereunder
or in the value of any of the Collateral.

          Section 14. Miscellaneous. (a) This Agreement cannot be changed or
terminated orally. This Agreement shall create a continuing lien on and security
interest in the Collateral and shall be binding upon each Debtor, its successors
and assigns and shall inure, together with the rights and remedies of the
Secured Creditors hereunder, to the benefit of the Secured Creditors and their
successors and permitted assigns; provided, however, that no Debtor may assign
its rights or delegate its duties hereunder without the Agent's prior written
consent. Without limiting the generality of the foregoing, and subject to the
provisions of the Credit Agreement, any Lender may assign or otherwise transfer
any indebtedness held by it secured by this Agreement to any other person, and
such other person shall thereupon become vested with all the benefits in respect
thereof granted to such Lender herein or otherwise.

         (b) All communications provided for herein shall be in writing, except
as otherwise specifically provided for hereinabove, and shall be deemed to have
been given or made, if to any Debtor when given to the Borrowers in accordance
with Section 15.8 of the Credit Agreement, or if to any Secured Creditor, when
given to such party in accordance with Section 15.8 of the Credit Agreement.

         (c) No Lender shall have the right to institute any suit, action or
proceeding in equity or at law for the foreclosure or other realization upon any
Collateral subject to this Agreement or for the execution of any trust or power
hereof or for the appointment of a receiver, or for the enforcement of any other
remedy under or upon this Agreement; it being understood and intended that no
one or more of the Lenders shall have any right in any manner whatsoever to
affect, disturb or prejudice the lien and security interest of this Agreement by
its or their action or to enforce any right hereunder, and that all proceedings
at law or in equity shall be instituted, had and maintained by the Agent in the
manner herein provided for the benefit of the Secured Creditors.

         (d) In the event that any provision hereof shall be deemed to be
invalid or unenforceable by reason of the operation of any law or by reason of
the interpretation placed thereon by any court, this Agreement shall be
construed as not containing such provision, but only as to such jurisdictions
where such law or interpretation is operative, and the invalidity or
unenforceability of such provision shall not affect the validity of any
remaining provisions hereof, and any and all other provisions hereof which are
otherwise lawful and valid shall remain in full force and effect. Without
limiting the generality of the foregoing, in the event that this Agreement shall
be deemed to be invalid or otherwise unenforceable with respect to any Debtor,
such invalidity or unenforceability shall not affect the validity of this
Agreement with respect to the other Debtors.

                                      -16-
<PAGE>   50

         (e) In the event the Secured Creditors shall at any time in their
discretion permit a substitution of Debtors hereunder or a party shall wish to
become a Debtor hereunder, such substituted or additional Debtor shall, upon
executing an agreement in the form attached hereto as Schedule D, become a party
hereto and be bound by all the terms and conditions hereof to the same extent as
though such Debtor had originally executed this Agreement and, in the case of a
substitution, in lieu of the Debtor being replaced. Any such agreement shall
contain information as to such Debtor necessary to update Schedules A, B, and C
hereto with respect to it. No such substitution shall be effective absent the
written consent of Agent nor shall it in any manner affect the obligations of
the other Debtors hereunder.

         (f) This Agreement shall be deemed to have been made in the State of
Illinois and shall be governed by, and construed in accordance with, the laws of
the State of Illinois. The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning of any
provision hereof.

         (g) Each Debtor hereby submits to the non-exclusive jurisdiction of the
United States District Court for the Northern District of Illinois and of any
Illinois state court sitting in Cook County, Illinois for purposes of all legal
proceedings arising out of or relating to this Agreement or the transactions
contemplated hereby. Each Debtor irrevocably waives, to the fullest extent
permitted by law, any objection which it may now or hereafter have to the laying
of the venue of any such proceeding brought in such a court and any claim that
any such proceeding brought in such a court has been brought in an inconvenient
form. EACH DEBTOR AND, BY ACCEPTING THE BENEFITS OF THIS AGREEMENT, EACH SECURED
CREDITOR HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY
LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

         (h) This Agreement may be executed in any number of counterparts and by
different parties hereto on separate counterpart signature pages, each
constituting an original, but all together one and the same agreement.


                           [SIGNATURE PAGES TO FOLLOW]

                                  -17-

<PAGE>   51


         IN WITNESS WHEREOF, each Debtor has caused this Agreement to be duly
executed and delivered as of the date first above written.





          "DEBTORS"


          TITAN INTERNATIONAL, INC.

          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN INVESTMENT CORPORATION

          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN CREDIT CORPORATION

          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN DISTRIBUTION, INC.

          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN WHEEL CORPORATION (to be known as Titan Marketing
            Services, Inc.)

          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN TIRE CORPORATION OF TEXAS

          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN TIRE CORPORATION OF NATCHEZ

          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------


                                 -18-
<PAGE>   52



          TITAN WHEEL CORPORATION OF ILLINOIS

          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN WHEEL CORPORATION OF IOWA


          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN WHEEL CORPORATION OF WISCONSIN


          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN WHEEL CORPORATION OF VIRGINIA


          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN TIRE CORPORATION


          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN TIRE CORPORATION OF TENNESSEE


           By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          AUTOMOTIVE WHEELS, INC.


          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          DYNEER CORPORATION


          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------

          TITAN LOGISTICS, INC.


          By
             Name:
                  -------------------------------------------------
             Title:
                   ------------------------------------------------




                                      -19-
<PAGE>   53



         Accepted and agreed to in Chicago, Illinois, as of the date first above
written.


                  HARRIS TRUST AND SAVINGS BANK, as Agent




                  By
                      Name:
                           -------------------------------------------------
                      Title:
                            ------------------------------------------------


                                      -20-
<PAGE>   54





                                   SCHEDULE A


                                    LOCATIONS

<TABLE>
<CAPTION>

                COLUMN 1                              COLUMN 2                                    COLUMN 3
<S>                                      <C>                                        <C>
  NAME OF DEBTOR (AND FEDERAL TAX I.D.       CHIEF EXECUTIVE OFFICE                    ADDITIONAL PLACES OF BUSINESS
                NUMBER)

Titan International, Inc.                2701 Spruce Street                                         None
Tax ID #36-3228472                       Quincy, Illinois  62301

Titan Investment Corporation             2701 Spruce Street                                         None
Tax ID #37-1330978                       Quincy, Illinois  62301

Titan Credit Corporation                 2701 Spruce Street                                         None
Tax ID #36-4160676                       Quincy, Illinois  62301

Titan Distribution, Inc.                 2701 Spruce Street                         5440 E. Francis, Suite B
Tax ID #42-1444713                       Quincy, Illinois  62301                    Ontario, California  91761-3603

                                                                                    1201 Old Hopewell Road
                                                                                    Suite 9
                                                                                    Tampa, Florida  33619

                                                                                    1360 Joe Frank Harris Parkway
                                                                                    Cartersville, Georgia  30120

                                                                                    2140 Academy Avenue Extension
                                                                                    Dublin, Georgia  31021

                                                                                    6000 Horizon West Parkway
                                                                                    Grovetown, Georgia  30813

                                                                                    2345 E. Market Street
                                                                                    Des Moines, Iowa  50317

                                                                                    21840 Protecta Drive
                                                                                    Elkhart, Indiana  46516

                                                                                    1441 Nitterhouse Drive
                                                                                    Chambersburg, Pennsylvania  17201

                                                                                    908 Fountain Parkway
                                                                                    Grand Prairie, Texas  75050

Titan Wheel Corporation                  2701 Spruce Street                                         None
Tax ID #37-1337195                       Quincy, Illinois  62301

</TABLE>


<PAGE>   55

<TABLE>


<S>                                      <C>                                        <C>
Titan Tire Corporation of                6700 Paredes Line Road                                     None
  Texas                                  Brownsville, Texas  78521
Tax ID #74-2851521

Titan Tire Corporation of                89 Kelly Avenue                                            None
  Natchez                                Natchez, Mississippi  39120
Tax ID #64-0898897

Titan Wheel Corporation of               2701 Spruce Street                         601 N. Main Street
  Illinois                               Quincy, Illinois  62301                    East Peoria, Illinois  61611
Tax ID #39-1909552

Titan Wheel Corporation of               455 S. Blue Grass Road                                     None
  Iowa                                   Walcott, Iowa  52773
Tax ID #39-1909552

Titan Wheel Corporation of               250 Weil Drive                             P.O. Box 50, R.R. #1
  Wisconsin                              Slinger, Wisconsin  53086                  Ventura, Iowa
Tax ID #39-1904676

Titan Wheel Corporation of               227 Allison Gap Road                                       None
  Virginia                               Saltville, Virginia  24370
Tax ID #54-1688395

Titan Tire Corporation                   2701 Spruce Street                         2345 E. Market Street
Tax ID #42-1424945                       Quincy, Illinois  62301                    Des Moines, Iowa  50317

Titan Tire Corporation of                520 J.D. Yarnell Industrial Parkway                        None
  Tennessee                              Clinton, Tennessee 37716
Tax ID #86-0575076

Automotive Wheels, Inc.                  5440 E. Francis, Suite B                                   None
Tax ID #33-0540312                       Ontario, California  91761-3603

Dyneer Corporation                       2701 Spruce Street                                         None
Tax ID #06-1174283                       Quincy, Illinois  62301

Titan Logistics, Inc.                    2111 Last Chance Road                                      None
Tax ID #88-0413307                       Elko, Nevada  89801
</TABLE>

                                      -2-
<PAGE>   56


                                   SCHEDULE B


                                   TRADE NAMES


                                      NONE




<PAGE>   57




                                   SCHEDULE C


                                FIXTURE LOCATIONS


                                      NONE




<PAGE>   58



                                   SCHEDULE D


                 ASSUMPTION AND SUPPLEMENTAL SECURITY AGREEMENT

         THIS AGREEMENT dated as of this      day of        from [NEW DEBTOR],
a          CORPORATION/LIMITED LIABILITY COMPANY/PARTNERSHIP (the "New Debtor"),
to Harris Trust and Savings Bank ("HTSB"), as agent for the Secured Creditors
(defined in the Security Agreement hereinafter identified and defined) (HTSB
acting as such agent and any successor or successors to HTSB in such capacity
being hereinafter referred to as the "Agent");


                             PRELIMINARY STATEMENTS

          A. Titan International, Inc., an Illinois corporation (the "Company"),
Titan Investment and Titan Credit (the Company, Titan Investment and Titan
Credit being hereinafter referred to collectively as the "Borrowers" and
individually as a "Borrower") and certain other parties have executed and
delivered to the Agent that certain Security Agreement dated as of
              , 1999 (such Security Agreement, as the same may from time to time
be amended, modified, or restated, including supplements thereto which add
additional parties as Debtors thereunder, being hereinafter referred to as the
"Security Agreement"), pursuant to which such parties (the "Existing Debtors")
have granted to the Agent for the benefit of the Secured Creditors a lien on and
security interest in each such Existing Debtor's Collateral (as such term is
defined in the Security Agreement) to secure the Obligations (as such term is
defined in the Security Agreement).

          B. The Borrowers provide the New Debtor with substantial financial,
managerial, administrative, and technical support and the New Debtor will
directly and substantially benefit from credit and other financial
accommodations extended and to be extended by the Secured Creditors to the
Borrowers.

         NOW, THEREFORE, FOR VALUE RECEIVED, and in consideration of advances
made or to be made, or credit accommodations given or to be given, to the
Borrowers by the Secured Creditors from time to time, the New Debtor hereby
agrees as follows:

          1. The New Debtor acknowledges and agrees that it shall become a
"Debtor" party to the Security Agreement effective upon the date the New
Debtor's execution of this Agreement and the delivery of this Agreement to the
Agent, and that upon such execution and delivery, all references in the Security
Agreement to the terms "Debtor" or "Debtors" shall be deemed to include the New
Debtor. Without limiting the generality of the foregoing, the New Debtor hereby
repeats and reaffirms all grants (including the grant of a lien and security
interest), covenants, agreements, representations and warranties contained in
the Security Agreement as amended hereby, each and all of which are and shall
remain applicable to the Collateral from time to time owned by the New Debtor or
in which the New Debtor from time to time has any rights. Without limiting the
foregoing, in order to secure payment of the Obligations, whether now existing
or hereafter arising, the New Debtor does hereby grant to the Agent for the
benefit





<PAGE>   59

of itself and the other Secured Creditors, and hereby agrees that the Agent has
and shall continue to have for the benefit of itself and the other Secured
Creditors a continuing lien on and security interest in, among other things, all
of the New Debtor's Collateral (as such term is defined in the Security
Agreement), including, without limitation, all of the New Debtor's Receivables,
General Intangibles, Inventory, Equipment, and all of the other Collateral
described in Section 2 of the Security Agreement, each and all of such granting
clauses being incorporated herein by reference with the same force and effect as
if set forth in their entirety except that all references in such clauses to the
Existing Debtors or any of them shall be deemed to include references to the New
Debtor. Nothing contained herein shall in any manner impair the priority of the
liens and security interests heretofore granted in favor of the Agent under the
Security Agreement.

          2. Schedules A (Locations), B (Trade Names), and C (Real Estate) to
the Security Agreement shall be supplemented by the information stated below
with respect to the New Debtor:

                            SUPPLEMENT TO SCHEDULE A


<TABLE>
<S><C>

  NAME OF DEBTOR (AND                                                               ADDITIONAL PLACES
FEDERAL TAX I.D. NUMBER)                  CHIEF EXECUTIVE OFFICE                       OF BUSINESS

------------------------                 ------------------------               ------------------------

------------------------                 ------------------------               ------------------------


                                          SUPPLEMENT TO SCHEDULE B

          NAME OF DEBTOR                                                TRADE NAMES OF SUCH DEBTOR

--------------------------------------------               ---------------------------------------------


                                          SUPPLEMENT TO SCHEDULE C

                                               FIXTURE LOCATIONS

                                      --------------------------------

                                      --------------------------------
</TABLE>


          3. The New Debtor hereby acknowledges and agrees that the Obligations
are secured by all of the Collateral according to, and otherwise on and subject
to, the terms and conditions of the Security Agreement to the same extent and
with the same force and effect as if the New Debtor had originally been one of
the Existing Debtors under the Security Agreement and had originally executed
the same as such an Existing Debtor.

          4. All capitalized terms used in this Agreement without definition
shall have the same meaning herein as such terms have in the Security Agreement,
except that any reference to the




                                      -2-
<PAGE>   60

term "Debtor" or "Debtors" and any provision of the Security Agreement providing
meaning to such term shall be deemed a reference to the Existing Debtors and the
New Debtor. Except as specifically modified hereby, all of the terms and
conditions of the Security Agreement shall stand and remain unchanged and in
full force and effect.

          5. The New Debtor agrees to execute and deliver such further
instruments and documents and do such further acts and things as the Agent may
deem necessary or proper to carry out more effectively the purposes of this
Agreement.

          6. No reference to this Agreement need be made in the Security
Agreement or in any other document or instrument making reference to the
Security Agreement, any reference to the Security Agreement in any of such to be
deemed a reference to the Security Agreement as modified hereby.

          7. This Agreement shall be governed by and construed in accordance
with the State of Illinois (without regard to principles of conflicts of law).

                                       [NEW DEBTOR]



                                       By
                                          Name
                                               ---------------------------------
                                          Title
                                               ---------------------------------

         Accepted and agreed to as of the date first above written.

                                       HARRIS TRUST AND SAVINGS BANK, as Agent



                                       By
                                          Name
                                               ---------------------------------
                                          Title
                                               ---------------------------------



                                      -3-

<PAGE>   61




                                    ANNEX III

                                  SCHEDULE 8.2


                   SUBSIDIARIES OF TITAN INTERNATIONAL, INC.


<TABLE>
<CAPTION>

                                                  JURISDICTION OF
          NAME                                     INCORPORATION                       PERCENTAGE OF OWNERSHIP

<S>                                               <C>                         <C>
Automotive Wheels, Inc.                              California                  100% - Non-operational, leasing
                                                                                  building and equipment to 3rd
                                                                                              party

Titan Credit Corporation                               Nevada                                  100%

Titan Distribution, Inc.                              Illinois                                 100%

Titan Transportation, Inc.                            Illinois                                 100%

Dyneer Corporation                                    Delaware                        100% - Holding Company

DICO Inc.                                             Delaware                      100% by Dyneer Corporation
                                                                                         Non-operational

Titan Wheel Corporation                               Illinois                        100% - Holding Company

Titan Wheel Corporation                               Illinois                         100% by Titan Wheel
    of Illinois                                                                  Corporation (formerly a division
                                                                                     of Titan International, Inc.)

Titan Wheel Corporation                                 Iowa                          100% by Titan Wheel
    of Iowa                                                                      Corporation (formerly a division
                                                                                     of Titan International, Inc.)

Titan Wheel Corporation                                 Ohio                     100% by Titan Wheel Corporation
    of Ohio

Titan Wheel Corporation                            South Carolina                     100% by Titan Wheel
    of South Carolina                                                            Corporation (formerly a division
                                                                                     of Titan International, Inc.)
</TABLE>




<PAGE>   62


<TABLE>

<S>                                               <C>                         <C>
Titan Wheel Corporation                              Wisconsin                         100% by Titan Wheel
    of Wisconsin                                                                   Corporation (formerly under
                                                                                            Dico, Inc.)

Titan Wheel Corporation                               Virginia                         100% by Titan Wheel
    of Virginia                                                                     Corporation (formerly T.D.
                                                                                    Wheel Company of Virginia)

Titan Wheel Corporation                                Nevada                           100% by Titan Wheel
    of Nevada                                                                        Corporation of Virginia
                                                                                   (formerly T.D. Wheel, Inc.)

Titan Investment Corporation                          Illinois                                 100%

Titan Tire Corporation                                Illinois                       100% by Titan Investment
                                                                                          Corporation

Titan Tire Corporation                                  Ohio                         100% by Titan Investment
    of Ohio                                                                                Corporation

Titan Tire Corporation                                Delaware                       100% by Titan Investment
    of Tennessee                                                                  Corporation (formerly Dico Tire,
                                                                                              Inc.)

Titan Tire Corporation                                 Texas                         100% by Titan Investment
    of Texas                                                                               Corporation

Titan Tire Corporation of Natchez                   Mississippi                                100%

Titan Wheel & Tire Foreign Sales                      Barbados                                 100%
    Corporation

Titan International                                  Australia                                 100%
    Australia, PTY, Ltd.

FUNSA                                                 Uruguay                                  81%

Titan Luxemburg, Sarl.                               Luxenburg                                 100%

Dyneer Holdings, Ltd.                           Republic of Ireland               100% by Titan Luxemburg, Sarl.
                                                (Ireland Resident)

Bengower                                    Republic of Ireland (Cayman           100% by Dyneer Holdings, Ltd.
                                                     Resident)
</TABLE>



                                      -2-

<PAGE>   63

<TABLE>

<S>                                               <C>                         <C>
Titan Financial Services                        Republic of Ireland                      99% by Bengower
    of Ireland, Ltd.                             (Ireland Resident)

Titan Europe Limited                               United Kingdom                 100% by Titan Luxemburg, Sarl.

Titan Siria Officine Meccaniche SpA                    Italy                       100% by Titan Europe Limited

Sirmac Officine                                        Italy                       100% by Titan Europe Limited
    Meccaniche SpA

Titan Distribution (UK),                           United Kingdom                  100% by Titan Europe Limited
  Limited                                                                             (formerly Titan Wheel
                                                                                       International, Ltd.)

Titan Germany, GmbH                                   Germany                     100% by Titan Europe, Limited

Titan France SA                                        France                      97% by Titan Europe, Limited

Titan Steel Wheels, Ltd.                           United Kingdom                      100% (by Titan Europe,
                                                                                               Limited)

Titan Steel Wheels                                 United Kingdom                  100% by Titan Steel Wheels Ltd.
    Exports Limited
</TABLE>



                                      -3-

<PAGE>   64




                                    ANNEX IV


                               SCHEDULE 10.11 (f)


                                SUBORDINATED DEBT

<TABLE>
<CAPTION>


DESCRIPTION                                                        LOCATION                           ($U.S. DOLLARS)
-----------                                                        --------                           ---------------
<S>                                                                <C>                                <C>
Senior Subordinated Notes                                          Corporate                          $   150,000,000

PATC Note                                                          Des Moines, IA                          19,743,000

                                                                                             Total    $   169,743,000
                                                                                                      ===============
</TABLE>