Document:

<PAGE>

                          LIEN INTERCREDITOR AGREEMENT

      LIEN INTERCREDITOR AGREEMENT (this "Agreement") dated as of May 31, 2001,
by and among the Working Capital Lenders referred to below, The CIT
Group/Business Credit, Inc., a New York corporation, as administrative agent and
collateral agent for the Working Capital Lenders (in such capacity, together
with its successors and assigns, hereinafter referred to as the "Working Capital
Agent"), and Hilco Capital LP, a Delaware limited partnership (together with its
successors and assigns, including any other lender or lenders that at any time
refinance or replace the Term Loan Debt referred to below, hereinafter referred
to as the "Term Loan Lender").

                              W I T N E S S E T H:

      WHEREAS, Harvard Industries, Inc., a Delaware corporation (together with
its successors and assigns, including any receiver, trustee or
debtor-in-possession, hereinafter referred to as the "Lead Borrower"), its
wholly owned subsidiaries (together with each of their successors and assigns,
including any receivers, trustees or debtors-in-possession, and with the Lead
Borrower, each a "Borrower" and collectively, the "Borrowers"), the financial
institutions from time to time party thereto (together with their successors and
assigns, including any other lender or lenders that at any time refinance or
replace the Working Capital Debt referred to below, each a "Working Capital
Lender" and collectively, the "Working Capital Lenders"), Citicorp USA, Inc., as
syndication agent for the Working Capital Lenders, and the Working Capital Agent
are parties to a Financing Agreement, dated as of May 31, 2001 (as amended or
otherwise modified from time to time, the "Working Capital Loan Agreement"),
pursuant to which the Working Capital Lenders have made and will from time to
time make loans and provide other financial accommodations to the Borrowers;

      WHEREAS, the Borrowers and the Term Loan Lender are parties to a Financing
Agreement, dated as of May 31, 2001 (as amended or otherwise modified from time
to time, the "Term Loan Agreement" and together with the Working Capital Loan
Agreement, the "Loan Agreements"), pursuant to which the Term Loan Lender has
made a term loan to the Borrowers;

      WHEREAS, the Borrowers and the other Obligors (as hereinafter defined)
have granted to the Working Capital Agent and the Working Capital Lenders a lien
on, and security interest in, substantially all of the assets and properties of
the Borrowers and the other Obligors, all as more particularly described in the
Working Capital Loan Documents (as defined below), and the Term Loan Lender
hereby acknowledges and consents to such lien and security interest;

      WHEREAS, the Borrowers and the other Obligors have granted to the Term
Loan Lender a lien on, and security interest in, substantially all of the assets
and properties of the Borrowers and the other Obligors, all as more particularly
described in the Term Loan Documents (as defined below), and the Working Capital
Agent and the Working Capital Lenders hereby acknowledge and consent to such
lien and security interest;

      WHEREAS, the Term Loan Lender, the Working Capital Agent and the Working
Capital Lenders wish to set forth their agreement as to certain of their
respective rights and obligations with respect to the assets and properties of
the Borrowers and the other Obligors and their understanding relative to their
respective positions in certain assets and properties of the Borrowers and the
other Obligors;

      NOW, THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the parties hereto agree as follows:

      SECTION 1. Definitions. As used in this Agreement, the following terms
shall have the respective meanings indicated below, such meanings

<PAGE>

to be applicable equally to both the singular and the plural forms of the terms
defined:

      "Aggregate Principal Exposure" means, with respect to the Working Capital
Debt, the sum of the aggregate principal amount of loans outstanding under the
Working Capital Loan Documents, all letter of credit accommodations (including
the face amount of all undrawn letters of credit plus all unpaid reimbursement
obligations) under the Working Capital Loan Documents and all other financial
accommodations under the Working Capital Loan Documents.

      "Borrower" shall have the meaning set forth in the recitals hereof.

      "Collateral" means all assets and properties of any kind whatsoever, real
or personal, tangible or intangible and wherever located, of the Borrowers or
any other Obligor, whether now owned or hereafter acquired, upon which a Lien is
now or hereafter granted or purported to be granted by such Person in favor of a
Lender, as security for all or any part of the Obligations.

      "Commitment" means the commitment of any Lender to make a loan, issue a
letter of credit or provide any other financial accommodation pursuant to any
Document.

      "Documents" means the Working Capital Loan Documents and the Term Loan
Documents, collectively.

      "Event of Default" means each "Event of Default" or similar term, as such
term is defined in any Working Capital Loan Document or any Term Loan Document,
so long as any such Document is in effect.

      "Excluded Portion" means, at any time, (i) the portion of the Aggregate
Principal Exposure in excess of the Maximum WC Debt, provided that, the amount
set forth in this clause (i) shall not include that portion of the Aggregate
Principal Exposure that exceeds the Maximum WC Debt solely as a result of (A) a
decline in the value of any Collateral, (B) any act or omission of any Obligor
in violation of any Working Capital Loan Document, or (C) any other similar
circumstance not caused by the Working Capital Agent or the Working Capital
Lenders, provided that, if any of the events described in clauses (A) through
(C) above result in the Aggregate Principal Exposure exceeding the Maximum W/C
Debt, any additional loans, letter of credit accommodations or other financial
accommodations provided by the Working Capital Agent or the Working Capital
Lenders during such period while the Working Capital Agent has knowledge that
the Aggregate Principal Exposure exceeds the Maximum W/C Debt shall not be
excluded from the Excluded Portion, (ii) interest, charges, fees, costs,
indemnities and expenses with respect to the portion of the Aggregate Principal
Exposure described in clause (i) of this definition, and (iii) any early
termination fee, prepayment fee or other similar fee payable pursuant to the
Working Capital Loan Agreement, except to the extent such early termination fee,
prepayment fee or other similar fee is payable to the Working Capital Lenders
pursuant to Section 4(c) hereof. The amount of the Excluded Portion shall be
determined on the date of the occurrence of a Release Event, immediately prior
to the occurrence of such Release Event.

      "Insolvency Proceeding" means, as to any Person, any of the following: (i)
any case or proceeding with respect to such Person under the U.S. Bankruptcy
Code or any other Federal or State bankruptcy, insolvency, reorganization or
other law affecting creditors' rights or any other or similar proceedings
seeking any stay, reorganization, arrangement, composition or readjustment of
the obligations and indebtedness of such Person, (ii) any proceeding seeking the
appointment of any trustee, receiver, liquidator, custodian or other insolvency
official with

<PAGE>

similar powers with respect to such Person or any of its assets, (iii) any
proceeding for liquidation, dissolution or other winding up of the business of
such Person or (iv) any assignment for the benefit of creditors or any
marshalling of assets of such Person.

      "Lead Borrower" shall have the meaning set forth in the recitals hereof.

      "Lenders" means the Working Capital Agent, the Working Capital Lenders and
the Term Loan Lender, collectively.

      "Lien" means any mortgage, deed of trust, pledge, lien (statutory or
otherwise), security interest, charge or other encumbrance or security or
preferential arrangement of any nature, including, without limitation, any
conditional sale or title retention arrangement, any capitalized lease and any
assignment, deposit arrangement or financing lease intended as, or having the
effect of, security.

      "Lien Enforcement Action" means (i) any action by any Lender to foreclose
on the Lien of such Person in all or a material portion of the Collateral, (ii)
any action by any Lender to take possession of, sell or otherwise realize upon
all or any material portion of the Collateral; and/or (iii) the commencement by
any Lender of any legal proceedings or actions against or with respect to all or
any material portion of the Collateral to facilitate the actions described in
(i) and (ii) above.

      "Maximum WC Debt" means the sum of (i) lesser of (a) $45,000,000 and (b)
an amount equal to (x) the WC Borrowing Base plus (y) the Permitted Overadvance,
and (ii) $20,000,000 as reduced from time to time by payments actually received
by the Working Capital Agent and the Working Capital Lenders in respect of the
term loans.

      "Obligations" means the "Obligations" (as defined in the Working Capital
Loan Documents as such documents are in effect on the date hereof), and the
"Obligations" (as defined in the Term Loan Documents as such documents are in
effect on the date hereof), collectively, provided that "Obligations" shall
exclude any loans, letter of credit accommodations or other financial
accommodations not made or extended pursuant to a Document.

      "Obligor" means a Person liable on or in respect of the Term Loan Debt or
the Working Capital Debt or that has granted a Lien on any property or assets as
collateral for any of the Obligations, together with such Person's successors
and assigns, including a receiver, trustee or debtor-in-possession on behalf of
such Person.

      "Permitted Overadvance" means the aggregate principal amount of all
Overadvances as such term is defined in the Working Capital Loan Agreement (as
such agreement is in effect on the date hereof) outstanding at any time under
the Working Capital Loan Agreement in an amount not to exceed the lesser of (a)
$1,000,000 and (b) 5% of the WC Borrowing Base, provided that (A) any
Overadvance outstanding from the first date that an Overadvance is made until
the date that such Overadvance no longer exists shall constitute a single
occurrence of an Overadvance, (B) there shall not be more than three (3)
separate occurrences of an Overadvance during the term of the Working Capital
Loan Agreement and (C) there shall not be more than an aggregate of thirty (30)
days on which an Overadvance is outstanding during the term of the Working
Capital Loan Agreement.

      "Person" means an individual, corporation, partnership, limited liability
company, limited liability partnership, association, joint-stock company, trust,
unincorporated organization, joint venture, governmental authority or other
regulatory body.

<PAGE>

      "Release Event" means (i) prior to the occurrence of an Insolvency
Proceeding by or against any Borrower or Obligor, the occurrence of an Event of
Default and the taking of any Lien Enforcement Action by any Lender, provided
that any Release Event occurring prior to an Insolvency Proceeding by or against
any Borrower or Obligor shall cease to constitute a Release Event as of the
occurrence of such Insolvency Proceeding if the Working Capital Agent and/or the
Working Capital Lenders continue making loans or providing letter of credit
accommodations or other financial accommodations (whether pursuant to the
Working Capital Loan Documents or otherwise) or consent to the use of cash
collateral after the occurrence of such Insolvency Proceeding or (ii) after the
occurrence of an Insolvency Proceeding by or against any Borrower or Obligor,
the occurrence of any of the following: (A) the entry of an order of the
Bankruptcy Court pursuant to Section 363 of the U.S. Bankruptcy Code authorizing
the sale of all or substantially all of the Borrowers' and Obligors' assets or
(B) the taking of any Lien Enforcement Action described in clauses (i) and (ii)
of the definition of such term by any Lender or the entry of an order of the
Bankruptcy Court pursuant to Section 362 of the U.S. Bankruptcy Code vacating
the automatic stay and authorizing any Lender to take any Lien Enforcement
Action.

      "Standstill Period" means the one-hundred and five (105) day period
commencing on the date that the Working Capital Agent receives, in accordance
with Section 3(b) hereof, a copy of the notice by the Term Loan Lender to the
Borrowers or any other Obligor of an Event of Default under the Term Loan
Documents and written demand for the accelerated payment by the Borrowers or
such Obligor of all Term Loan Debt; provided that, if any Borrower or any other
Obligor is subject to an Insolvency Proceeding by reason of which the making of
such demand for accelerated payment is stayed, the Standstill Period shall
commence on the date of the commencement of such Insolvency Proceeding.

      "Term Loan Agreement" shall have the meaning set forth in the recitals
hereof.

      "Term Loan Debt" means all obligations, liabilities and indebtedness of
every kind, nature and description owing by the Borrowers or any Obligor to the
Term Loan Lender evidenced by or arising under the Term Loan Documents, whether
direct or indirect, absolute or contingent, joint or several, due or not due,
primary or secondary, liquidated or unliquidated, including principal, interest,
charges, fees, costs, indemnities and reasonable expenses, however evidenced,
whether as principal, surety, endorser, guarantor or otherwise, whether now
existing or hereafter arising, whether arising before, during or after the
initial or any renewal term of the Term Loan Agreement, whether arising before,
during or after the commencement of any Insolvency Proceeding with respect to
any Borrower or any Obligor (and including, without limitation, the payment of
interest which would accrue and become due but for the commencement of such
Insolvency Proceeding, whether or not such interest is allowed or allowable in
whole or in part in any such Insolvency Proceeding), provided that "Term Loan
Debt" shall exclude any Obligations of the Borrowers under the Stock Purchase
Agreement (as such term is defined in the Term Loan Agreement).

      "Term Loan Documents" means the Term Loan Agreement, all Loan Documents
(as such term is defined in the Term Loan Agreement) and all other agreements,
documents and instruments at any time executed and/or delivered by any Borrower
or any other Obligor or any other Person with, to or in favor of the Term Loan
Lender in connection therewith or related thereto, in each case, as amended or
otherwise modified from

<PAGE>

time to time, provided that "Term Loan Documents" shall exclude the Stock
Purchase Agreement (as such term is defined in the Term Loan Agreement).

      "Term Loan Lender" shall have the meaning set forth in the preamble
hereof.

      "Uniform Commercial Code" means the Uniform Commercial Code as in effect
from time to time in the State of New York.

      "WC Borrowing Base" means the "Borrowing Base" as such term is defined in
the Working Capital Loan Agreement as such agreement is in effect on the date
hereof.

      "Working Capital Debt" means all obligations, liabilities and indebtedness
of every kind, nature and description owing by the Borrowers or any Obligor to
the Working Capital Agent or any Working Capital Lender evidenced by or arising
under the Working Capital Loan Documents, whether direct or indirect, absolute
or contingent, joint or several, due or not due, primary or secondary,
liquidated or unliquidated, including principal, interest, charges, fees, costs,
indemnities and reasonable expenses, however evidenced, whether as principal,
surety, endorser, guarantor or otherwise, whether now existing or hereafter
arising, whether arising before, during or after the initial or any renewal term
of the Working Capital Loan Agreement whether arising before, during or after
the commencement of any Insolvency Proceeding with respect to any Borrower or
any Obligor (and including, without limitation, the payment of interest which
would accrue and become due but for the commencement of such Insolvency
Proceeding whether or not such interest is allowed or allowable in whole or in
part in any such Insolvency Proceeding). Notwithstanding anything to the
contrary in this definition or in any other provision of this Agreement,
"Working Capital Debt" shall not include the Excluded Portion. The foregoing
limitation shall not apply to, and the term "Working Capital Debt" shall
include, obligations consisting of interest, fees, costs or expenses, in each
case in respect of the Working Capital Debt (excluding the Excluded Portion)
whether or not charged by the Working Capital Agent to the loan account of the
Borrowers maintained by Working Capital Agent pursuant to the Working Capital
Loan Agreement.

      "Working Capital Agent" shall have the meaning set forth in the preamble
hereof.

      "Working Capital Lenders" shall have the meaning set forth in the recitals
hereof.

      "Working Capital Loan Agreement" shall have the meaning set forth in the
recitals hereof.

      "Working Capital Loan Documents" means the Working Capital Loan Agreement,
all Loan Documents (as such term is defined in the Working Capital Loan
Agreement) and all other agreements, documents and instruments at any time
executed and/or delivered by any Borrower or any other Obligor or any other
Person with, to or in favor of the Working Capital Agent or any Working Capital
Lender in connection therewith or related thereto, in each case, as amended or
otherwise modified from time to time.

      SECTION 2. Priorities.

      (a) The Liens of the Working Capital Agent and the Working Capital
Lenders, to the extent that such Liens secure the Working Capital Debt, have and
shall be senior and prior in right to the Liens of the Term Loan Lender, and
such Liens of the Term Loan Lender are and shall be junior and subordinate to
the Liens of the Working Capital Agent and the Working Capital Lenders, to the
extent that such Liens secure the

<PAGE>

Working Capital Debt, subject to the immediately following sentence.
Notwithstanding the foregoing, Section 2(e), Section 2(g) and any other
provision to the contrary contained in this Agreement, (i) the subordination of
Liens provided for in this Section 2(a) shall not be effective on any date with
respect to any part of the Collateral in which the Term Loan Lender, but not the
Working Capital Agent and the Working Capital Lenders, holds on such date a
valid, perfected and enforceable Lien and the Term Loan Lender shall be entitled
to receive and retain all proceeds of such Collateral, and (ii) the Liens of the
Working Capital Agent and the Working Capital Lenders, to the extent that such
Liens secure the Excluded Portion, are and shall be junior and subordinate in
all respects to the Liens of the Term Loan Lender.

      (b) The priorities of the Liens provided in Section 2(a) shall not be
altered or otherwise affected by any amendment, modification, supplement,
extension, renewal, restatement, replacement or refinancing of the Working
Capital Debt or the Term Loan Debt, nor by any action or inaction which any of
the Lenders may take or fail to take in respect of the Collateral so long as the
Liens of the Working Capital Agent and the Working Capital Lenders are valid,
perfected and enforceable. The Working Capital Agent and each Working Capital
Lender agrees not to: (i) subordinate, or otherwise voluntarily relinquish the
benefits of, its Lien in any Collateral to the Lien, indebtedness or claim of
any other creditor of any Borrower or any Obligor, (ii) eliminate any category
of, or change the methodology of the calculation of, any Availability Reserves
(as such term is defined in the Working Capital Loan Agreement as in effect on
the date hereof), (iii) increase the Revolving Credit Commitment (as such term
is defined in the Working Capital Loan Agreement as in effect on the date
hereof) or the advance rates with respect to receivables and inventory under the
Working Capital Loan Agreement as in effect on the date hereof or (iv) amend the
due dates or decrease the amounts of any principal payments in respect of the
term loan portions of the Working Capital Debt or waive any Event of Default
under the Working Capital Loan Agreement as a result of the failure of the
Borrowers to make any payment of principal in respect of any term loan when due.

      (c) The priorities set forth in this Agreement are applicable irrespective
of the order or time of attachment, or the order, time or manner of perfection,
or the order or time of filing or recordation of any document or instrument, or
other method of perfecting a Lien in favor of each Lender in any Collateral, and
notwithstanding any conflicting terms or conditions which may be contained in
any of the Documents.

      (d) The priorities set forth in this Agreement are premised upon the
assumption that any liens and security interests which are provided herein to be
senior and prior in right to other liens and security interests have been duly
and properly created and perfected pursuant to the applicable Documents or
otherwise, and are not avoidable for any reason. Each of the Working Capital
Agent, the Working Capital Lenders and the Term Loan Lender agrees not to
contest, or to bring (or voluntarily join in or permit) any action or proceeding
for the purpose of contesting, the validity, perfection or priority (as herein
provided) of, or seeking to avoid, the Working Capital Agent's, any Working
Capital Lender's or the Term Loan Lender's liens and security interests in the
Collateral, and provided, further, that nothing herein shall be deemed or
construed to prevent the Working Capital Agent, any Working Capital Lender or
the Term Loan Lender from asserting any right

<PAGE>

or claim it may have arising under or in connection with this Agreement.

      (e) Subject to Section 2(a), all proceeds of the Collateral received by
the Term Loan Lender shall be forthwith paid over, in the funds and currency
received, to the Working Capital Agent and the Working Capital Lenders for
application to the Working Capital Debt (except to the extent of the Excluded
Portion or as otherwise required by law). All proceeds of the Collateral
received by the Working Capital Agent or any Working Capital Lender after the
Working Capital Debt (other than the Excluded Portion) has been paid in full in
cash and the Working Capital Agent and the Working Capital Lenders have received
as cash collateral an amount equal to 105% of the aggregate undrawn face amount
of letters of credit provided under the Working Capital Loan Agreement for the
account of any Borrower or any Obligor shall be forthwith paid over, in the
funds and currency received, to the Term Loan Lender for application to the Term
Loan Debt (unless otherwise required by law, provided that the Working Capital
Agent and the Working Capital Lenders shall promptly pay over to the Term Loan
Lender any such cash collateral in respect of letters of credit which have
expire undrawn or have been returned to the issuer thereof for cancellation).
For purposes of this Section 2(e), payments made by any Borrower to the Term
Loan Lender in respect of the Term Loan Debt with proceeds of loans by the
Working Capital Agent or the Working Capital Lenders to any Borrower shall not
be construed to constitute proceeds of Collateral.

      (f) Each Lender shall be solely responsible for perfecting and maintaining
the perfection of its Lien in and to each item constituting the Collateral in
which such Lender has been granted a Lien. The foregoing provisions of this
Agreement are intended solely to govern the respective Lien priorities as
between the Lenders and shall not impose on any Lender any obligations in
respect of the disposition of proceeds of any Collateral that would conflict
with prior perfected claims therein in favor of any other Person or any order or
decree of any court or governmental authority or any applicable law.

      (g) The Term Loan Lender shall, at any time during the continuance of a
Release Event while Working Capital Debt (other than the Excluded Portion)
remains unpaid: (i) upon the request of the Working Capital Agent with respect
to such Collateral or other disposition as set forth below (which request shall
specify the proposed terms of the sale or other disposition and the type and
amount of consideration to be received in connection therewith), release or
otherwise terminate its Liens on such Collateral, to the extent such Collateral
is to be sold or otherwise disposed of either by (A) the Working Capital Agent
or its agents, or (B) any Borrower or any other Obligor with the consent of the
Working Capital Agent and the Working Capital Lenders; (ii) deliver such release
documents as Working Capital Agent may reasonably require in connection
therewith; provided that, (A) such release by the Term Loan Lender shall not
extend to or otherwise affect any of the rights of the Term Loan Lender to the
proceeds from any such sale or other disposition of Collateral, (B) the Working
Capital Agent and the Working Capital Lenders shall promptly apply such proceeds
to the Working Capital Debt (other than the Excluded Portion), including the
cash collateralization of any undrawn letters of credit provided under the
Working Capital Loan Agreement for the account of the Borrowers or any Obligor),
(C) after such application, the Working Capital Agent and the Working Capital
Lenders shall promptly deliver any excess proceeds from such sale or disposition
of Collateral to the Term Loan Lender,

<PAGE>

and (D) no such release documents shall be delivered (1) to any Borrower or any
other Obligor or (2) more than three (3) business days prior to the date of the
closing of the sale or disposition of the Collateral; provided further that if
the closing of the sale or disposition of the Collateral is not consummated, the
Working Capital Agent shall promptly return all release documents to the Term
Loan Lender; and (iii) be deemed to have consented under the Documents to which
the Term Loan Lender is a party to such sale or other disposition. The
effectiveness of any such release or termination by the Term Loan Lender shall
lapse in the event such sale or other disposition does not occur within ten (10)
days of the anticipated closing date. In any sale or other disposition of any of
the Collateral by the Working Capital Agent or any Working Capital Lender, the
Working Capital Agent or such Working Capital Lender shall conduct such sale or
other disposition in a commercially reasonable manner. Without intending to
expand or alter the standards of commercial reasonableness of a lender in the
exercise of its remedies under applicable law, the Working Capital Agent and the
Working Capital Lenders acknowledge and agree that it is their intention that
the Working Capital Agent or the Working Capital Lender conducting any Lien
Enforcement Action will use reasonable efforts to regularly advise the Term Loan
Lender of the status of any Lien Enforcement Action, to consult with the Term
Loan Lender from time to time with respect to the various options available to
the Working Capital Agent or such Working Capital Lender with respect to any
such Lien Enforcement Action, and advise the Term Loan Lender of any and all
offers which may be made from time to time by prospective purchasers of the
Collateral.

      SECTION 3. Enforcement of Security.

      (a) Subject to the other terms and conditions of this Agreement, the
Working Capital Agent and the Working Capital Lenders shall have the exclusive
right to manage, perform and enforce the terms of the Working Capital Loan
Documents with respect to the Collateral, to exercise and enforce all privileges
and rights thereunder according to their discretion and the exercise of their
business judgment, including, without limitation, the exclusive right to take or
retake control or possession of such Collateral and to hold, prepare for sale,
process, sell, lease, dispose of, or liquidate such Collateral. Except as
specifically provided in Section 3(c) below, notwithstanding any rights or
remedies available to the Term Loan Lender under any of the Term Loan Documents,
applicable law or otherwise, prior to the time that the Working Capital Agent
and the Working Capital Lenders shall have received the payment in full of all
Working Capital Debt (other than the Excluded Portion) in cash, the Term Loan
Lender shall not, directly or indirectly, take any Lien Enforcement Action.
Notwithstanding anything in the preceding sentence or in this Agreement to the
contrary, during the occurrence and continuance of any Event of Default under
any Term Loan Document, subject at all times to the provisions of Sections 2(a)
and 2(e) of this Agreement, upon the expiration of the Standstill Period, the
Term Loan Lender may take any Lien Enforcement Action, but only so long as the
Working Capital Agent or the Working Capital Lenders are not diligently pursuing
in good faith the exercise and enforcement of their rights or remedies against,
or diligently attempting to vacate any stay or enforcement of their Liens on,
all or a material portion of the Collateral (including, without limitation,
commencement of any Lien Enforcement Action). If the Term Loan Lender commences
any action to enforce its Lien on any Collateral to the extent permitted
hereunder and is diligently pursuing in good faith

<PAGE>

such actions, neither the Working Capital Agent nor any Working Capital Lender
shall take any action of a similar nature with respect to such Collateral.

      (b) Each Lender shall give to the other Lender concurrently with the
giving thereof to any Borrower or any other Obligor (i) a copy of any written
notice by such Lender of an Event of Default under any of its Documents,
including, without limitation, written notice of demand of payment from any
Borrower or any other Obligor, and (ii) a copy of any written notice sent by
such Lender to any Borrower or any other Obligor, stating such Lender's
intention to exercise any of its enforcement rights or remedies against such
Borrower or Obligor, including, without limitation, written notice pertaining to
any foreclosure on any of the Collateral or other judicial or non-judicial
remedy in respect thereof to the extent permitted hereunder, and any legal
process served or filed in connection therewith; provided that the failure of
any Lender to give such required notice shall not affect the relative priorities
of the Liens of the Lenders as provided herein or the validity or effectiveness
of any such notice as against any Borrower or any other Obligor. In addition, if
the Working Capital Agent or any Working Capital Lender shall receive possession
or control of any books and records of any Borrower or any other Obligor that
contain information identifying or pertaining to any Collateral in which the
Term Loan Lender has been granted a Lien (whether in the exercise of its rights
under its Documents or otherwise), the Working Capital Agent or such Working
Capital Lender shall notify the Term Loan Lender that it has received such books
and records and shall, as promptly as practicable thereafter, make available to
the Term Loan Lender such books and records for inspection and duplication.

      (c) Section 3(a) shall not be construed to limit or impair in any way the
right of: (i) any Lender to bid for or purchase Collateral at any private or
judicial foreclosure upon such Collateral initiated by any Lender, (ii) the Term
Loan Lender to join (but not control) any foreclosure or other judicial lien
enforcement proceeding with respect to the Collateral initiated by the Working
Capital Agent or any Working Capital Lender, so long as it does not delay or
interfere in any material respect with the exercise by the Working Capital Agent
or such Working Capital Lender of its rights under this Agreement, and (iii) the
Term Loan Lender's right to receive any remaining proceeds of Collateral after
satisfaction and payment in full in cash of all Working Capital Debt (other than
the Excluded Portion), including the cash collateralization of any undrawn
letter of credit provided under the Working Capital Loan Agreement for the
account of the Borrowers or any Obligor. Each right, power and remedy of each
Lender provided for in this Agreement, any Document, or any other loan document
relating to any of the foregoing, whether now existing or hereafter available at
law or in equity or by statute or otherwise, shall be cumulative (except to the
extent otherwise provided in any such Document) and shall be in addition to
every other such right, power or remedy. Except to the extent otherwise provided
in this Agreement, any Document or any other loan document relating to any of
the foregoing, the exercise by or on behalf of a Lender of any one or more of
such rights, powers or remedies shall not preclude the simultaneous or later
exercise of all other such rights, powers and remedies, and no course of dealing
or failure or delay on the part of any Lender in exercising any such right,
power or remedy shall operate as a waiver thereof or otherwise prejudice its
rights, powers or remedies.

<PAGE>

      (d) Each of the Working Capital Agent, the Working Capital Lenders and the
Term Loan Lender agrees to hold, or cause to be held on its behalf, any
Collateral received by or on behalf of it, or under its dominion and control, in
or against which a Lien may be perfected by possession or the exercise of
dominion and control, on behalf of all others entitled thereto, and to turn over
to the Working Capital Agent, Working Capital Lenders or the Term Loan Lender,
as appropriate, all such Collateral and all other Collateral, which shall be
dealt with pursuant to the terms and conditions of the relevant Document. Each
Lender hereby appoints the other Lender as agent for the purposes of perfecting
the other Lender's Liens in and on any of the Collateral in the possession or
under the dominion and control of such Lender; provided that the Lender in the
possession of, or exercising dominion and control over, any Collateral shall not
have any duty or liability to protect or preserve any rights pertaining to any
of the Collateral and, except for gross negligence or willful misconduct as
finally determined by a court of competent jurisdiction, the non-possessing or
non-controlling Lender hereby waives and releases the other Lender from all
claims and liabilities arising pursuant to the possessing or controlling
Lender's role as bailee with respect to the Collateral, so long as the
possessing or controlling Lender shall use the same degree of care with respect
thereto as the possessing or controlling Lender uses for similar property
pledged to the possessing or controlling Lender as collateral for indebtedness
of others to the possessing or controlling Lender. After the Working Capital
Agent and the Working Capital Lenders have received final payment in full of all
of the Working Capital Debt (other than the Excluded Portion), including the
cash collateralization of any undrawn letter of credit provided under the
Working Capital Loan Agreement for the account of the Borrowers or any Obligor,
the Working Capital Agent and the Working Capital Lenders shall deliver the
remainder of the Collateral, if any, in their possession or under their dominion
and control to the Term Loan Lender and assign to the Term Loan Lender all of
the Working Capital Agent's interest in any blocked depository accounts of the
Obligors or any depository accounts of the Obligors under the dominion and
control of the Working Capital Agent, except as may otherwise be required by
applicable law or court order. It is understood and agreed that this paragraph
(d) is intended solely to assure continuous perfection of the Liens granted
under the applicable Documents, and nothing in this paragraph (d) shall be
deemed or construed as altering the priorities or obligations set forth
elsewhere in this Agreement.

      SECTION 4. Term Loan Lender Purchase Option

      (a) Upon the occurrence and during the continuance of an Event of Default
under a Working Capital Loan Document, the Term Loan Lender shall have the
option at any time upon five business days' prior written notice to the Working
Capital Agent to purchase all of the Working Capital Debt from the Working
Capital Agent and the Working Capital Lenders. Such notice from the Term Loan
Lender to the Working Capital Agent shall be irrevocable.

      (b) On the date specified by the Term Loan Lender in such notice (which
shall not be less than five business days, nor more than twenty days, after the
receipt by the Working Capital Agent of the notice from the Term Loan Lender of
its election to exercise such option), the Working Capital Lenders shall sell to
the Term Loan Lender, and the Term Loan Lender shall purchase from the Working
Capital Lenders, the Working Capital Debt. The Working Capital Agent and each
Working Capital Lender hereby represents and warrants that, as of the date

<PAGE>

hereof, no approval of any governmental authority, other regulatory body or
other Person is required for such sale.

      (c) Upon the date of such purchase and sale, the Term Loan Lender shall
(i) pay to the Working Capital Agent for the benefit of the Working Capital
Lenders as the purchase price therefor the full amount of all the Working
Capital Debt then outstanding and unpaid (including principal, interest, fees
and expenses, including reasonable attorneys' fees and legal expenses but
excluding the Excluded Portion and any early termination fee, prepayment fee or
other similar fee payable pursuant to Section 10 of the Working Capital Loan
Agreement), (ii) furnish cash collateral to the Working Capital Agent in such
amounts as the Working Capital Agent determines is reasonably necessary to
secure the Working Capital Agent and the Working Capital Lenders in connection
with any issued and outstanding letters of credit provided by the Working
Capital Agent and the Working Capital Lenders (or letters of credit that the
Working Capital Agent or the Working Capital Lenders have arranged to be
provided by third parties pursuant to the financing arrangements of the Working
Capital Agent and the Working Capital Lenders with any Borrower or any other
Obligor) to any Borrower or any Obligor (but not in any event in an amount
greater than 105% of the aggregate undrawn face amount of such letters of
credit), (iii) agree to reimburse the Working Capital Agent and the Working
Capital Lenders for any loss, cost, damage or expense (including reasonable
attorneys' fees and legal expenses) in connection with any commissions, fees,
costs or expenses related to any issued and outstanding letters of credit as
described above and any checks or other payments provisionally credited to the
Working Capital Debt, and/or as to which the Working Capital Agent or the
Working Capital Lenders have not yet received final payment, and (iv) agree to
pay to the Working Capital Agent for the benefit of the Working Capital Lenders
any early termination fee, prepayment fee or other similar fee payable pursuant
to Section 10 of the Working Capital Loan Agreement within three (3) business
days after receipt by the Term Loan Lender of amounts sufficient to pay such
early termination fee, prepayment fee or other similar fee after the payment in
full in cash to the Term Loan Lender of the Term Loan Debt and the Working
Capital Debt purchased by the Term Loan Lender pursuant to this Section 4,
including principal, interest and fees thereon and costs and expense of
collection thereof (including reasonable attorneys' fees and legal expenses),
provided that the payment of the fee occurs within sixty (60) days after the
effective date of the purchase of the Working Capital Debt by the Term Loan
Lender. Such purchase price and cash collateral shall be remitted by wire
transfer in federal funds to such bank account of the Working Capital Agent in
New York, New York, as the Working Capital Agent may designate in writing to the
Term Loan Lender for such purpose. Interest shall be calculated to but excluding
the business day on which such purchase and sale shall occur if the amounts so
paid by the Term Loan Lender to the bank account designated by Working Capital
Agent are received in such bank account prior to 1:00 p.m., New York City time
and interest shall be calculated to and including such business day if the
amounts so paid by the Term Loan Lender to the bank account designated by
Working Capital Agent are received in such bank account later than 1:00 p.m.,
New York City time.

      (d) Such purchase shall be expressly made without representation or
warranty of any kind by the Working Capital Agent or any Working Capital Lender
as to the Working Capital Debt or otherwise and without recourse to the Working
Capital Agent or any Working Capital Lender,

<PAGE>

except for representations and warranties as to the following: (i) the amount of
the Working Capital Debt being purchased (including, without limitation, as to
the principal of and accrued and unpaid interest on such Working Capital Debt,
fees and expenses thereof), (ii) that the Working Capital Lenders own the
Working Capital Debt free and clear of any Liens, and (iii) the Working Capital
Lenders have the full right and power to assign the Working Capital Debt, such
assignment has been duly authorized, and no approval of any governmental
authority, other regulatory body or other Person is required in connection with
such assignment.

      (e) The Working Capital Agent and each Working Capital Lender agrees that
it will give the Term Loan Lender five business days prior written notice of its
intention to commence any Lien Enforcement Action. If during such five business
day period, the Term Loan Lender shall send to the Working Capital Agent the
irrevocable notice of the Term Loan Lender's intention to exercise the purchase
option given by the Working Capital Lenders to the Term Loan Lender under
Section 4(a), the Working Capital Agent and the Working Capital Lenders shall
not accelerate payment of the Working Capital Debt or commence any Lien
Enforcement Action, provided that the purchase and sale with respect to the
Working Capital Debt provided for herein shall have closed within five business
days thereafter and the Working Capital Agent and the Working Capital Lenders
shall have received payment in full of the Working Capital Debt as provided for
herein (other than the Excluded Portion) within such five business day period.
The Working Capital Agent shall not be required to provide such five business
days prior written notice if in the good faith determination of the Working
Capital Agent (i) a fraud has been committed by any Borrower or any other
Obligor in connection with its obligations under the Working Capital Loan
Documents, including, without limitation, any withholding of collections of
accounts receivable or other proceeds of Collateral in violation of the terms of
the Working Capital Loan Documents, or (ii) providing such notice would have a
reasonable likelihood of (A) causing a material diminution in the value of the
Collateral, or (B) materially endangering the Working Capital Agent's or the
Working Capital Lenders' ability to realize upon the Collateral; provided,
however, that in the each such case the Working Capital Agent nonetheless shall
give the Term Loan Lender concurrent or prompt subsequent notice (which shall
indicate in reasonable detail the nature and circumstances of any fraud or other
event described in clause (i) or (ii) above that is applicable) of its
acceleration or commencement of Lien Enforcement Action.

      SECTION 5. Waiver of Marshalling and Similar Rights. Each Lender, to the
fullest extent permitted by applicable law, waives any requirement regarding,
and agrees not to demand, request, plead or otherwise claim the benefit of, any
marshalling, appraisement, valuation or other similar right that may otherwise
be available under applicable law.

      SECTION 6. Notices, etc. Each Lender agrees to give, or cause to be given,
to the other Lender written notice of the time and place of any public or
private sale of the Collateral or the time after which any such sale or other
intended disposition is to be made of the Collateral, and agrees to use
reasonable efforts to make available, or cause to be made available (but shall
have no liability for failure to do so), information received by it from any
Borrower or any other Obligor with respect to the Collateral. This Agreement is
intended, in part, to constitute a request for notice and a written notice of a
claim by each party hereto to the other parties hereto of an interest

<PAGE>

in the Collateral in accordance with the provisions of Sections 9-504 and 9-505
of the Uniform Commercial Code.

      SECTION 7. Termination. This Agreement shall terminate and be of no
further force and effect upon either (a) the payment in full of all of the
Obligations (as defined in the Working Capital Loan Documents), other than the
Excluded Portion, and the termination or expiration of (i) any commitment of the
Working Capital Lenders to make any loan or provide letter of credit or other
financial accommodations under any Working Capital Loan Documents and (ii) any
letters of credit issued by the Working Capital Agent or the Working Capital
Lenders (except to the extent within the Excluded Portion), including the cash
collateralization of any undrawn letter of credit provided under the Working
Capital Loan Agreement for the account of the Borrowers or any Obligor or (b)
payment in full of all of the Obligations (as defined in the Term Loan
Documents) and the termination or expiration of any commitment of the Term Loan
Lender under the Term Loan Agreement.

      SECTION 8. Successors and Assigns

      (a) This Agreement shall be binding upon each Lender and its respective
successors and assigns and shall inure to the benefit of each Lender and its
respective successors, participants and assigns.

      (b) Each Lender reserves the right to grant participations in, or
otherwise sell, assign, transfer or negotiate all or any part of, or any
interest in, the Working Capital Debt or the Term Loan Debt, as the case may be;
provided that no Lender shall be obligated to give any notices to or otherwise
in any manner deal directly with any participant in the Working Capital Debt or
the Term Loan Debt, as the case may be, and no participant shall be entitled to
any rights or benefits under this Agreement except through the Lender with which
it is a participant and any sale of a participation in the Working Capital Debt
shall be expressly made subject to the provisions of this Agreement (including,
without limitation, Section 4).

      (c) In connection with any participation or other transfer or assignment,
a Lender (i) may, subject to its respective Documents, disclose to such
assignee, participant or other transferee or assignee all documents and
information which such Lender now or hereafter may have relating to any Borrower
or any other Obligor or the Collateral and (ii) shall disclose to such
participant or other transferee or assignee the existence and terms and
conditions of this Agreement.

      (d) In the case of an assignment or transfer, the assignee or transferee
acquiring any interest in the Term Loan Debt or the Working Capital Debt, as the
case may be, shall execute and deliver to each Lender a written acknowledgment
of receipt of a copy of this Agreement and the written agreement by such Person
to be bound by the terms of this Agreement. In addition, in the event of an
assignment or transfer by the Term Loan Lender of less than all of the Term Loan
Debt, the Term Loan Lender shall agree with the assignee to appoint one Person
as an agent to act on its behalf under this Agreement for purposes of receiving
payments and notices hereunder and shall notify the other parties hereto of the
Person who shall act in such capacity.

      (e) In connection with any assignment or transfer of any or all of the
Obligations of a Lender or any or all rights of such Lender in the property of
any Borrower or any other Obligor (other than pursuant to a participation), the
other Lender agrees to execute and deliver an agreement identical to this
Agreement (subject to changing names of parties, documents and addresses, as
appropriate) in favor of any such assignee or transferee and, in addition, will
execute and deliver an agreement identical to this Agreement (subject to
changing names of

<PAGE>

parties, documents and addresses, as appropriate) in favor of any third Person
who succeeds to or refinances, replaces or substitutes for any or all of such
Lender's financing of any Borrower or any other Obligor, whether such successor
or replacement financing occurs by transfer, assignment or any other means.

      SECTION 9. Miscellaneous.

      (a) All notices and other communications provided for hereunder shall be
in writing and shall be mailed, sent by overnight courier, telecopied, or
delivered, as follows:

      if to the Working Capital Agent, to it at the following address:

      The CIT Group/Business Credit, Inc.
      1211 Avenue of the Americas
      New York, New York  10036
      Attention: Regional Manager

      Telephone: (212) 536-1259
      Telecopier: (212) 536-1295

      with a copy to

      Dewey Ballantine LLP
      1301 Avenue of the Americas
      New York, New York  10019
      Attention: Linda B. Klein, Esq.

      Telephone: (212) 259-6721
      Telecopier: (212) 259-7644

      if to the Term Loan Lender, to it at the following address:

      Hilco Capital LP
      One Northbrook Place
      5 Revere Drive, Suite 202
      Northbrook, Illinois  60062
      Attention: Portfolio Administrator

      Telephone: (847) 559-9300
      Telecopier: (847) 559-9330

      with a copy to

      Schulte Roth & Zabel LLP
      919 Third Avenue
      New York, New York  10022
      Attention: Frederic L. Ragucci, Esq.

      Telephone: (212) 756-2000
      Telecopier: (212) 593-5955

or, as to each party, at such other address as shall be designated by such party
in a written notice to the other parties complying as to delivery with the terms
of this Section 9(a). All such notices and other communications shall be
effective (i) if sent by registered mail, return receipt requested, when
received or three business days after mailing, whichever first occurs, (ii) if
telecopied, when transmitted and a confirmation is received, provided the same
is on a business day and, if not, on the next business day, or (iii) if
delivered by messenger or overnight courier, upon delivery, provided the same is
on a business day and, if not, on the next business day.

      (b) This Agreement may be executed by the parties hereto in several
counterparts, and each such counterpart shall be deemed to be an original and
all of which shall constitute together but one and the same agreement.

<PAGE>

      (c) This Agreement shall be applicable both before and after the filing of
any petition by or against any Borrower or any Obligor under the U.S. Bankruptcy
Code and all converted or succeeding cases in respect thereof, and all
references herein to any Borrower or any other Obligor shall be deemed to apply
to the trustee for such Borrower or such Obligor and such Borrower or such
Obligor as debtor-in-possession. The relative rights of the Working Capital
Agent, the Working Capital Lenders and the Term Loan Lender in or to any
distributions from or in respect of any Collateral or proceeds of Collateral
shall continue after the filing thereof on the same basis as prior to the date
of the petition, subject to any court order approving the financing of, or use
of cash collateral by, any Borrower or any Obligor as debtor-in-possession.

      (d) If any Borrower or any other Obligor shall become subject to a case
under the U.S. Bankruptcy Code and if as debtor(s)-in-possession move for
approval of financing to be provided in good faith by the Working Capital Agent
or any Working Capital Lender (the "DIP Lender") under Section 364 of the U.S.
Bankruptcy Code or the use of cash collateral with the consent of the DIP Lender
under Section 363 of the U.S. Bankruptcy Code, the Term Loan Lender agrees that
no objection will be raised by Term Loan Lender to any such financing on the
grounds of a failure to provide "adequate protection" for the Liens of the Term
Loan Lender so long as (i) the interest rate, fees, advance rates, lending
sublimits and limits and other terms are commercially reasonable under the
circumstances, (ii) the Term Loan Lender retains a Lien on the Collateral
(including proceeds thereof arising after the commencement of such proceeding)
with the same priority as existed prior to the commencement of the case under
the U.S. Bankruptcy Code, (iii) the Term Loan Lender receives a replacement Lien
on post-petition assets to the same extent granted to the DIP Lender, with the
same priority as existed prior to the commencement of the case under the U.S.
Bankruptcy Code, (iv) the aggregate principal amount of loans and letter of
credit accommodations outstanding under such post-petition financing, together
with the aggregate principal amount of the pre-petition Working Capital Debt,
shall not exceed the Maximum WC Debt, and (v) such financing or use of cash
collateral is subject to the terms of this Agreement. Nothing contained herein
shall be deemed to limit the rights of the Term Loan Lender to object to
post-petition financing or use of cash collateral on any grounds other than the
failure to provide "adequate protection" for the Liens of the Term Loan Lender.
For purposes of this Section, notice of a proposed financing or use of cash
collateral shall be deemed given when provided in the manner prescribed by
Section 6 hereof.

      (e) Nothing in this Agreement (including, without limitation, the
definitions of Working Capital Debt or Term Loan Debt) shall be deemed to
subordinate the right of Term Loan Lender to receive payment to the right of the
Working Capital Agent or any Working Capital Lender to receive payment (whether
before or after the occurrence of any Insolvency Proceeding).

      (f) This Agreement shall be governed by, and construed in accordance with,
the law of the State of New York.

      (g) Except as herein otherwise specifically provided, the rights and
priorities of the parties shall be determined in accordance with applicable law.

      (h) This Agreement is intended to establish the relative rights and
obligations of each of the Working Capital Agent, the Working Capital Lenders
and the Term Loan Lender with respect to the subject matter

<PAGE>

hereof and shall not be deemed to create any rights or priorities in any other
Person.

      (i) No amendment or waiver of any provision of this Agreement, and no
consent to any departure by any Person from the terms hereof, shall in any event
be effective unless it is in writing and signed by the Lenders. In no event
shall the consent of any Borrower or any other Obligor be required in connection
with any amendment or other modification of this Agreement.

      (j) No failure or delay on the part of any Lender in exercising any power
or right under this Agreement shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power or right preclude any other or
further exercise thereof or the exercise of any other power or right.

      (k) Any provision of this Agreement which is prohibited or unenforceable
in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions of this Agreement or affecting the validity or enforceability of such
provisions in any other jurisdiction.

      (l) Each of the Lenders agrees to cooperate fully with each other party
hereto to effectuate the intent and provisions of this Agreement and, from time
to time, to execute and deliver any and all other agreements, documents or
instruments, and to take such other actions, as may be reasonably necessary or
desirable to effectuate the intent and provisions of this Agreement.

      (m) Any legal action or proceeding with respect to this Agreement or any
document related thereto may be brought in the courts of the State of New York
located in New York City or the United States of America for the Southern
District of New York, and, by execution and delivery of this Agreement, each of
the Borrowers, the Working Capital Agent, the Working Capital Lenders and the
Term Loan Lender hereby accepts generally and unconditionally the jurisdiction
of the aforesaid courts. Each of the Borrowers, the Working Capital Agent, the
Working Capital Lenders and the Term Loan Lender hereby irrevocably waives any
objection, including, without limitation, any objection to the laying of venue
or based on the grounds of forum non conveniens, which it may now or hereafter
have to the bringing of any such action or proceeding in such respective
jurisdictions and consents to the granting of such legal or equitable relief as
is deemed appropriate by the court.

      (n) EACH OF THE PARTIES HERETO WAIVES ANY RIGHT IT MAY HAVE TO TRIAL BY
JURY IN RESPECT OF ANY LITIGATION BASED ON, ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS Intercreditor AGREEMENT OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, VERBAL OR WRITTEN STATEMENT OR OTHER ACTION IN CONNECTION HEREWITH.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their respective officers thereunto duly authorized as of the day
and year first above written.

                                        Working Capital Agent and
                                           Working Capital Lender:

                                        THE CIT GROUP/BUSINESS CREDIT, INC.

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

                                        Syndication Agent and
                                           Working Capital Lender:

                                        CITICORP USA, INC.

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

                                        Issuing Bank:

                                        CITIBANK, N.A.

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

                                        Term Loan Lender:

                                        HILCO CAPITAL LP

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

Each of the undersigned hereby
acknowledges and agrees to the foregoing
terms and provisions.

HARVARD INDUSTRIES, INC.

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

DOEHLER JARVIS, INC.

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

HARVARD TRANSPORTATION
  CORPORATION

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

<PAGE>

DOEHLER JARVIS GREENEVILLE, INC.

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

POTTSTOWN PRECISION CASTING, INC.

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

HARVARD INDUSTRIES RISK MANAGEMENT, INC.

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

DOEHLER JARVIS TOLEDO, INC.

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

HARMAN AUTOMOTIVE, INC.

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

HAYES ALBION CORPORATION

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

KWCI LIQUIDATING CORPORATION

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

TRIM TRENDS CANADA LIMITED

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

177192 CANADA INC.

By:
   -------------------------------------
   Name:
   Title:<PAGE>

                          GRANT OF SECURITY INTEREST IN
                              INTELLECTUAL PROPERTY

THIS GRANT OF SECURITY INTEREST IN INTELLECTUAL PROPERTY made as of May 31, 2001
(the "Agreement") by each of the entities identified on the signature pages
hereof as Grantor (each "Grantor") and Hilco Capital LP (the "Lender") under the
Financing Agreement referred to below.

                              W I T N E S S E T H:

WHEREAS the Lender and, as joint and several obligors, Harvard Industries, Inc.,
Doehler-Jarvis, Inc., Harvard Transportation Corporation, Doehler-Jarvis
Greeneville, Inc., Pottstown Precision Casting, Inc., Harvard Industries Risk
Management, Inc., Doehler-Jarvis Toledo, Inc., Harman Automotive, Inc.,
Hayes-Albion Corporation, and KWCI Liquidating Corporation (the "Companies")
and, as Guarantors, Trim Trends Canada Limited and 177192 Canada Inc. (the
"Guarantors") have entered into a Financing Agreement of even date herewith (the
"Financing Agreement"); and

WHEREAS the Financing Agreement provides (i) that the Lender will, on the terms
and subject to the conditions set forth therein, make a term loan to the
Companies, and (ii) for Grantor to grant to the Lender a security interest in
certain of Grantor's assets, including, without limitation, its copyrights,
patents, patent applications and/or registrations, trademarks, trademark
applications and/or registrations, tradenames, goodwill and licenses, all as
more fully set forth therein;

NOW, THEREFORE, in consideration of the premises set forth herein and for other
good and valuable consideration, receipt and sufficiency of which is hereby
acknowledged, Grantor agrees as follows:

                             ARTICLE 1: DEFINITIONS

1.01.    Definitions. Unless otherwise specifically defined herein, capitalized
         terms used herein shall have the meanings set forth in the Financing
         Agreement.

         "Copyright License" means any written or unwritten agreement, naming
         Grantor as licensor or licensee, granting any right under any
         Copyright.

         "Patent License" means all agreements, whether written or oral,
         providing for the grant by or to Grantor of any right to manufacture,
         use or sell any invention covered by a Patent.

         "Trademark License" means any agreement, written or oral, providing for
         the grant by or to Grantor of any right to use any Trademark.

<PAGE>

                     ARTICLE 2: GRANT OF SECURITY INTEREST

2.01.    Grant of Security Interest. As security for the prompt payment in full
         of all Obligations, Grantor hereby pledges and grants to the Lender a
         security interest, effective immediately, in all of Grantor's right,
         title and interest in and to all of the following described property,
         whether now owned or hereafter acquired (collectively herein the "IP
         Collateral"):

         (a)      all Patents, including, without limitation, the patents and
                  applications, listed on (1) Schedule A and (2) Schedule
                  Foreign Patents attached hereto and made a part hereof along
                  with any and all (i) inventions and improvements described and
                  claimed therein, (ii) any and all reissues and renewals,
                  divisions, continuations, extensions and continuations-in-part
                  thereof, (iii) all income, royalties, damages and payments now
                  and hereafter due and/or payable in connection therewith,
                  including, without limitation, damages and payments for past,
                  present or future infringements thereof, and (iv) rights to
                  sue for past, present or future infringements thereof (all of
                  the foregoing are sometimes hereinafter individually and/or
                  collectively referred to as the "Patent Collateral");

         (b)      all Trademarks, including federal, state and common law
                  trademark registrations and/or applications and tradenames
                  including, without limitation, the trademarks and
                  applications, if any, listed on (1) Schedule B and (2)
                  Schedule Foreign Trademarks attached hereto and made a part
                  hereof along with any and all (i) reissues and/or renewals
                  thereof, and (ii) all income, royalties, damages and payments
                  now and hereafter due and/or payable in connection therewith,
                  including, without limitation, damages and payments for past,
                  present or future infringements thereof and rights to sue for
                  past, present or future infringements thereof (all of the
                  foregoing are sometimes hereinafter individually and/or
                  collectively referred to as the "Trademark Collateral");

         (c)      all Copyrights, including, without limitation, registrations,
                  recordings and applications in the United States Copyright
                  Office, including, without limitation, any thereof referred to
                  in Schedule C attached hereto;

         (d)      any Copyright License, Patent License or Trademark License,
                  including, without limitation, such licenses, if any, listed
                  on Schedule D attached hereto and made a part hereof along
                  with (i) any renewals, extensions, supplement and
                  continuations thereof, (ii) all income, royalties, damages and
                  payments now and hereafter due and/or payable in connection
                  therewith, including, without limitation, damages and payments
                  for past, present or future breaches thereof, (iii) rights to
                  sue for past, present or future breaches thereof, and (iv) any
                  other rights to use, exploit or practice any or all of the
                  patents, trademarks or copyrights pertaining thereto (all of
                  the foregoing are sometimes referred to herein individually
                  and/or collectively as the "License Collateral");

                                      -2-
<PAGE>

         (e)      all goodwill of Grantor's business connected with and
                  symbolized by the Trademarks and other general intangibles,
                  including, without limitation, know-how, trade secrets,
                  customer lists, proprietary information, inventions, methods,
                  procedures and formulae;

         (f)      all cash and non-cash proceeds of the foregoing described in
                  clauses (a) through (e), and, to the extent not otherwise
                  included, any

                    (i)   payments under any insurance, indemnity, warranty or
                          guarantee or letter of credit payable with respect to
                          any of the foregoing described in clauses (a) through
                          (e);

                   (ii)   payments (in any form whatsoever) made or due and
                          payable to Grantor from time to time in connection
                          with any requisition, confiscation, condemnation,
                          seizure or forfeiture of all or any part of any of
                          the foregoing described in clauses (a) through (e) by
                          any Governmental Authority (or any person acting under
                          color of a Governmental Authority);

                  (iii)   instruments representing obligations to pay amounts
                          in respect of any products of any of the foregoing
                          described in clauses (a) through (e); and

                   (iv)   other amounts from time to time paid or payable under
                          or in connection with any of any of the foregoing
                          described in clauses (a) through (e).

         (g)      all books, records, ledger cards, files, correspondence,
                  computer programs, tapes, disks, and related data processing
                  software (owned by Grantor or in which it has an interest)
                  that at any time evidence or contain information relating to
                  any IP Collateral or are otherwise necessary or helpful in the
                  use thereof, collection thereof or realization thereupon.

         (h)      to the extent not otherwise included in the foregoing, all
                  General Intangibles; Grantor and the Lender hereby acknowledge
                  and agree that the security interest created hereby in the IP
                  Collateral (i) constitutes continuing collateral security for
                  all of the Obligations, whether now existing or hereafter
                  arising, (ii) is not to be construed as an assignment or
                  license of any IP Collateral, and (iii) shall remain in full
                  force and effect until the termination of the Commitments and
                  the full, final and indefeasible payment and performance of
                  the Obligations.

2.02.    The Lender's Rights as Secured Party. Upon the occurrence of any Event
         of Default, the Lender shall have all the rights and remedies of a
         secured party under the UCC and any other applicable state or federal
         laws. If any Event of Default or if a Default consisting of a failure
         of payment of a kind referred to in Paragraph 10.1(g) of the Financing
         Agreement (a "Payment Default") occurs and is continuing, then on ten
         (10) days' prior notice to Grantor, without the curing of such default
         within such

                                      -3-
<PAGE>

         time, the Lender may, without demand of performance, advertisement or
         notice of intention to sell, or of the time or place of sale, and
         without notice to redeem, or other notice or demand whatsoever
         (including those referred to in section 5.12 hereof) to or upon Grantor
         (all and each of which demands, advertisements and/or notices are
         hereby expressly waived by Grantor), forthwith or at any time or times
         thereafter

         (a)      transfer to and/or register in the Lender's name, or the name
                  of the Lender's nominee, any or all of the IP Collateral
                  and/or collect, receive, appropriate and realize upon said IP
                  Collateral;

         (b)      sell, assign, transfer and deliver to any other person all
                  right, title and interest in and to all or any part of the IP
                  Collateral then held by the Lender under this Agreement or
                  subject to this Agreement.

         (c)      Grantor agrees that any notice of sale, disposition, or other
                  intended action by the Lender that may be required by
                  applicable law, if sent to Grantor at least ten (10) days
                  prior to such action shall constitute reasonable notice to
                  Grantor. Notwithstanding anything to the contrary elsewhere in
                  this Agreement, if the Obligations are declared or
                  automatically become immediately due and payable pursuant to
                  Paragraph 10.2 of the Financing Agreement, in connection with
                  an Event of Default, the rights and remedies of the Lender
                  provided for herein, including, without limitation, your
                  rights to exercise the powers granted to the Lender in the
                  power of attorney included in the Financing Agreement and this
                  Agreement, shall continue and shall not cease to be effective
                  until the full, final and indefeasible payment of all the
                  Obligations, regardless of whether such Event of Default is
                  subsequently remedied.

2.03.    Power of Attorney. Grantor hereby confirms the power of attorney that
         it has granted to the Lender in Paragraph 9.1 of Section 9 of the
         Financing Agreement and Grantor confirms that the Lender, or any person
         or agent designated by the Lender may, as Grantor's attorney-in-fact
         thereunder, at Grantor's cost and expense, exercise all of the powers
         there granted to the Lender with respect to the IP Collateral as well
         as each of those set forth below:

         (a)      to perform or cause the performance of any obligation of
                  Grantor hereunder;

         (b)      to liquidate any IP Collateral and otherwise to deal in or
                  with the IP Collateral or the proceeds or avails thereof, as
                  fully and effectually as if the Lender were absolute owner
                  thereof, and to apply the proceeds thereof to payment of the
                  Obligations, notwithstanding the fact that such liquidation
                  may give rise to penalties;

         (c)      to transmit to any persons indebted on any IP Collateral
                  notice of the Lender's interest therein and to notify any
                  persons indebted on any IP Collateral to make payment directly
                  to the Lender for Grantor's account and receive and

                                      -4-
<PAGE>

                  give acquittance and receipts for moneys due and to be come
                  due under or in respect of any of the IP Collateral;

         Notwithstanding anything hereinabove contained to the contrary, the
         powers set forth in (b) and (c) above may only be exercised after the
         occurrence of an Event of Default and until such time as such Event of
         Default is waived in writing by the Lender. Grantor hereby ratifies and
         approves all of the Lender's acts taken pursuant to the foregoing
         appointment, other than acts constituting gross negligence or willful
         misconduct, and the Lender, as Grantor's attorney-in-fact, will not be
         liable for any acts of commission or omission, or for any error of
         judgment or mistake of fact or law, other than those that constitute
         gross negligence or willful misconduct on the part of the Lender.
         Grantor agrees that, in the event the Lender exercises its rights
         hereunder and/or pursuant to said power of attorney in accordance with
         its terms, after written notification of such exercise from the Lender
         to Grantor, Grantor shall never thereafter, without the prior written
         authorization of the owner or owners of such IP Collateral, use any of
         such IP Collateral. The condition of the foregoing provision is such
         that unless and until there occurs an Event of Default, Grantor shall
         continue to own and use the IP Collateral in the normal course of its
         business and to enjoy the benefits, royalties and profits therefrom;
         provided, however, that from and after the occurrence of an Event of
         Default such right will, upon the exercise by the Lender of the rights
         contemplated in this Agreement (including those provided for in any
         other Loan Document or by applicable law), be revoked and the right of
         Grantor to enjoy the uses, benefits, royalties and profits of said IP
         Collateral will wholly cease, whereupon the Lender or its transferee(s)
         shall be entitled to all of Grantor's right, title and interest in and
         to the IP Collateral hereby so assigned. This Agreement will not
         operate to place upon the Lender any duty or responsibility to maintain
         the IP Collateral.

                              ARTICLE 3: COVENANTS

3.01.    Filings to Confirm Perfection of Security Interest. On a continuing
         basis, Grantor shall, at its sole cost and expense, make, execute,
         acknowledge and deliver, and file and record in the proper filing and
         recording offices, all such instruments or documents, including,
         without limitation, appropriate UCC financing and continuation
         statements and collateral agreements and the notices attached as
         Schedules A, B and C hereto, and take all such action as may be deemed
         necessary by the Lender to carry out the intent and purpose of this
         Agreement, to assure and confirm to the Lender the grant or perfection
         of a first priority security interest in the IP Collateral, and to
         enable the Lender to exercise and enforce its rights and remedies
         hereunder with respect to any IP Collateral. Notwithstanding the
         foregoing, Grantor's obligations to record Lender's security interest
         in any Patent or Trademark application or registration or any
         application or registration for Copyrights shall apply only to (a)
         those U.S. and Canadian Patent and Trademark applications and
         registrations listed in (1) Schedule A and Schedule B, (2) future
         applications for Patents and Trademarks and applications or
         registrations for Copyrights, in each case, that are useful in the
         business of Grantor or any other direct or indirect subsidiary of
         Harvard, and (3) Patents and Trademarks listed on the Schedule Foreign
         Patents or Schedule Foreign Trademarks, if such Patent or Trademark is
         necessary for the

                                      -5-
<PAGE>

         operation of any material portion of the business of Harvard or any of
         its direct or indirect subsidiaries.

3.02.    Fees. Grantor shall pay all filing fees with respect to the security
         interest created hereby which the Lender may deem necessary or
         advisable in order to perfect and maintain the perfection of its
         security interest in the IP Collateral.

3.03.    Applications and Preservation of IP Collateral. Grantor shall
         diligently prosecute all applications for Patents or Trademarks now or
         hereafter pending the registration of which would be necessary to any
         material portion of the business of Grantor, and shall do all acts
         necessary to preserve and maintain all rights in the IP Collateral
         necessary for the operation of any material portion of Grantor's
         business. Any and all costs and expenses incurred in connection with
         any such actions shall be borne by Grantor. Grantor shall not abandon
         any right to file a Patent or Trademark application claiming priority
         from another pending Patent or Trademark application or registration,
         or any pending Patent or Trademark application or any Patent or
         Trademark the registration of which would be necessary for the
         operation of any material portion of Grantor's business without the
         consent of the Lender.

3.04.    Notice to Lender and Lenders.

         (a)      Abandonments or Adverse Proceedings. Grantor shall promptly
                  provide written notice in the manner provided in Section 5.08
                  to the Lender if it knows, or has reason to know, that any
                  application or registration for any Patent, Trademark or
                  Copyright (1) in the U.S. or Canada or (2) in any other
                  country if such application or registration is necessary for
                  the operation of a material portion of Grantor's business may
                  become abandoned or dedicated, or of any adverse determination
                  or proceeding in the United States Patent and Trademark Office
                  (other than nonfinal office actions in the course of patent or
                  trademark prosecution) or the United States Copyright Office
                  or any court or tribunal in any country regarding the
                  ownership of any Patent, Trademark or Copyright in the U.S. or
                  Canada or in any other country if such Patent, Trademark or
                  Copyright is necessary for the operation of a material portion
                  of Grantor's business or any application or registration for
                  such Patent, Trademark or Copyright or its right to register
                  the same or to keep and maintain the same.

         (b)      Filing an application for registration of any Patent,
                  Trademark or Copyright. Whenever Grantor, either (i) by itself
                  or through an agent, employee, licensee or designee, shall
                  file an application for the registration of any Patent or
                  Trademark with the United States Patent and Trademark Office
                  or any Copyright with the United States Copyright Office or
                  any similar offices or agencies in any other country or any
                  political subdivision thereof; or (ii) otherwise acquires any
                  Patent, Trademark or Copyright application therefor, Grantor
                  shall report such filing to the Lender within five Business
                  Days after the last day of the fiscal quarter in which such
                  filing occurs.

                                      -6-
<PAGE>

         (c)      Infringement, Misappropriation or Dilution. Grantor shall
                  promptly provide written notice in the manner provided in
                  Section 5.08 to the Lender whenever Grantor learns that any
                  Patent, Trademark or Copyright included in the IP Collateral
                  is infringed, misappropriated or diluted by a third party and,
                  in the case of any such Patent, Trademark or Copyright which
                  is material to the Grantor's business, promptly sue for
                  infringement, misappropriation or dilution, to seek injunctive
                  relief where appropriate and to recover any and all damages
                  for such infringement, misappropriation or dilution, and, in
                  any case, to take such actions as it shall reasonably deem
                  appropriate under the circumstances to protect such Patent,
                  Trademark or Copyright.

         (d)      General Obligation to Notify. To the extent not otherwise
                  included in the foregoing Grantor covenants and agrees that,
                  with respect to the IP Collateral, it will promptly provide
                  the Lender written notice in the manner provided in Section
                  5.08 of: (i) any claim by a third party that Grantor has
                  infringed on the rights of a third party; (ii) any suspected
                  infringement by a third party on the rights of Grantor; or
                  (iii) any IP Collateral except such IP Collateral the absence
                  of which would not be material to Grantor's business or the
                  business of any other direct or indirect subsidiary of Harvard
                  or any application or registration for IP Collateral created,
                  arising or acquired by Grantor after the date hereof.

3.05.    Defense of Claims. Grantor will defend at its own cost and expense any
         action, claim or proceeding affecting the IP Collateral and/or the
         interest of the Lender therein.

3.06.    Change of Location/Name. Grantor agrees that it shall not (i) change
         the location of its chief executive office/chief place of business from
         its address specified for notices herein, or (ii) change its name
         (including the adoption of any new trade name), jurisdiction of
         incorporation, identity or corporate structure, unless, in any such
         case, it shall have provided at least thirty (30) days' prior written
         notice to the Lender of any such change and until such filings and
         other measures as may be required under applicable law to continue
         uninterrupted the perfected lien or security interest created hereunder
         on and in the IP Collateral shall have been taken, and until the Lender
         shall have received such opinions of counsel with respect thereto as it
         may have reasonably requested.

                   ARTICLE 4: REPRESENTATIONS AND WARRANTIES

4.01.    Representations and Warranties.

         (a)      Ownership, No Liens, Prior Assignments, or Infringements.
                  Notwithstanding anything to the contrary elsewhere in the Loan
                  Documents, Grantor makes no representation as to subsistence
                  or maintenance of the IP Collateral referred to in the
                  Schedule Foreign Patents or Schedule Foreign Trademarks.
                  Grantor represents and warrants and covenants that Grantor
                  lawfully possesses and owns the IP Collateral and that, except
                  for the security interest granted hereby and the Permitted
                  Encumbrances, the IP Collateral is and will continue to be

                                      -7-
<PAGE>

                  kept free from all liens, security interests, claims and
                  encumbrances whatsoever; that Grantor has not made or given
                  any prior assignment, transfer or security interest in the IP
                  Collateral or any of the proceeds thereof; the IP Collateral
                  listed in Schedules A, B and C hereto is and will continue to
                  be, in all respects, in full force and effect; and, except as
                  disclosed in Schedule 11 to the Financing Agreement there are
                  no known or threatened claims by a third party that Grantor
                  has infringed on the rights of a third party.

         (b)      Valid Security Interest/Priority. Grantor represents and
                  warrants that this Agreement creates a valid security interest
                  in favor of the Lender in the IP Collateral and, when the
                  appropriate UCC filings, registrations, recordings and other
                  notices, which are those listed in Schedules A, B and C
                  attached hereto, have been filed, registered or recorded (as
                  applicable), the Lender shall have a valid perfected security
                  interest in the IP Collateral, to the extent such security can
                  be perfected by filing under the UCC, with the United States
                  Patent and Trademark Office and/or with the United States
                  Copyright Office, free and clear of any and all liens and
                  encumbrances except for Permitted Encumbrances.

                               ARTICLE 5: GENERAL

5.01.    Application of Proceeds. The proceeds of any disposition of the IP
         Collateral shall be applied, first, to all costs and expenses,
         including, but not limited to, reasonable attorneys' fees and expenses
         and court costs, incurred by the Lender in connection with such
         disposition and its exercise of its rights and remedies hereunder and
         under the other Loan Documents, and, next, to the payment in whole or
         in part, in such order as the Lender may elect, of the Obligations,
         whether then due or not due, in accordance with the terms of the
         Financing Agreement and the Intercreditor Agreement. The Lender agrees
         to pay over any remaining balance to Grantor or to any person entitled
         thereto or as a court of competent jurisdiction may direct, upon proper
         demand being made therefor. If the Obligations are not fully and
         finally satisfied through this application of proceeds and the
         application of the proceeds of other Collateral as contemplated in the
         other Loan Documents and the Intercreditor Agreement, Grantor shall
         continue to be fully liable for the deficiency to the extent provided
         in the Financing Agreement.

5.02.    Rights Cumulative. The security interest granted herein and the rights
         and remedies provided to you in this Agreement shall be in addition to,
         and not in substitution, reduction, replacement, or satisfaction of,
         any other endorsements or guarantees of the Obligations under the
         Financing Agreement or any other Loan Document now existing or
         hereafter executed by Grantor or any other Person, and shall not be
         deemed to affect, prejudice modify or limit the Financing Agreement,
         any other Loan Document or any other rights, collateral, agreements or
         security that the Lender has under the Financing Agreement or any other
         Loan Document whether granted or given to you by Grantor, any Company
         or Guarantor or by any other Person. In addition, nothing in this
         Agreement shall be deemed to affect, prejudice, modify or limit any of
         your agreements with the Senior Lien Administrative Agent or the Senior

                                      -8-
<PAGE>

         Lien Lenders, as applicable, under the Financing Agreement or the
         Intercreditor Agreement as to what rights and remedies you, the Senior
         Lien Administrative Agent or the Senior Lien Lenders may have, the
         order in which you or they may elect to exercise them or as to the
         conditions to their exercise.

5.03.    Grantor and (by its acceptance of the benefits of this Pledge
         Agreement) the Lender hereby agree that if any provision hereof or of
         any other agreement made in connection herewith is held to be illegal
         or unenforceable, such provision shall be fully severable, and the
         remaining provisions of the applicable agreement shall remain in full
         force and effect and shall not be affected by such provision's
         severance. Furthermore, in lieu of any such provision, there shall be
         added automatically as a part of the applicable agreement a legal and
         enforceable provision as similar in terms to the severed provision as
         may be possible.

5.04.    Waiver of Jury Trial. NEITHER GRANTOR NOR ITS SUCCESSOR, ASSIGN OR
         PERSONAL REPRESENTATIVE SHALL SEEK A JURY TRIAL IN ANY LAWSUIT,
         PROCEEDING, COUNTERCLAIM OR ANY OTHER LITIGATION PROCEDURE INVOLVING
         GRANTOR, ITS SUCCESSOR, ASSIGN OR PERSONAL REPRESENTATIVE (OR ANY
         OFFICER, DIRECTOR, EMPLOYEE OR AGENT OF ANY OF THEM) BASED UPON OR
         ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, ANY
         IP COLLATERAL OR ANY COLLATERAL FOR THE PAYMENT OF ANY OF THE
         OBLIGATIONS OR THE DEALINGS OR THE RELATIONSHIP BETWEEN OR AMONG SUCH
         PERSONS OR ENTITIES, OR ANY OF THEM OR ANY OTHER PARTY TO ANY LOAN
         DOCUMENT. NONE OF GRANTOR, ITS SUCCESSOR, ASSIGN OR PERSONAL
         REPRESENTATIVE WILL SEEK TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY
         TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL
         CANNOT OR HAS NOT BEEN WAIVED. THE PROVISIONS OF THIS SECTION 5.04 HAVE
         BEEN FULLY DISCUSSED BY GRANTOR AND THE LENDER, AND THE PROVISIONS
         HEREOF SHALL BE SUBJECT TO NO EXCEPTIONS. NO PARTY HAS IN ANY WAY
         AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF
         THIS SECTION 5.04 WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

5.05.    Governing Law. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS
         AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
         WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.

5.06.    Submission to Jurisdiction; Service of Process. Grantor hereby
         irrevocably:

                  (a) submits for itself and its property in any legal action or
         proceeding relating to this Agreement, or for recognition and
         enforcement of any judgment in respect thereof, to the non-exclusive
         general jurisdiction of the courts of the State of New York, the courts
         of the United States of America for the Southern District of New York,
         and appellate courts from any thereof;

                                      -9-
<PAGE>

                  (b) consents that any such action or proceeding may be brought
         in such courts and waives any objection that it may now or hereafter
         have to the venue of any such action or proceeding in any such court or
         that such action or proceeding was brought in an inconvenient court and
         agrees not to plead or claim the same;

                  (c) agrees that nothing contained herein shall affect the
         right to effect service of process in any other manner permitted by law
         or shall limit the right to sue in any other jurisdiction;

                  (d) appoints CT Corporation, Inc., at 111 Eighth Avenue, 13th
         floor, New York, New York 10011, as its agent to receive service of
         process or other summons in connection with any such action or
         proceeding and waives personal service of process and consents to
         service of process by certified or registered mail, return receipt
         requested, addressed to Grantor at its address for notices under the
         Financing Agreement.

5.07.    Events of Default. Grantor shall be in default under this Agreement
         upon the occurrence of any Event of Default under the Financing
         Agreement.

5.08.    Notices. Any notice or other communication required hereunder or
         relating to this Agreement shall be given as provided in Paragraph 13.6
         of Section 13 of the Financing Agreement for notices relating thereto.

5.09.    Further Assurances. Grantor will take any such action as the Lender may
         reasonably require to further confirm or protect the Lender's rights
         under this Agreement in the IP Collateral. Grantor agrees to execute
         and deliver to the Lender (at Grantor's expense) any further
         documentation or papers necessary to carry out the intent or purpose of
         this Agreement, including, without limitation, financing statements
         under the UCC and notices attached hereto as Schedules A, B and C.

5.10.    Termination. This Agreement shall terminate upon termination of the
         Line of Credit and full, final and indefeasible payment of all
         Obligations of Grantor thereunder. Upon Grantor's request, the Lender
         shall within a reasonable time after any such termination execute and
         deliver to Grantor (at Grantor's expense) such documents and
         instruments as are reasonably necessary to evidence such termination
         and release of the security interest granted herein on any applicable
         public record.

5.11.    Indemnification. Grantor hereby acknowledges that this Agreement is a
         Loan Document and as such Grantor is subject to the provisions
         respecting indemnification of Paragraph 7.7 of Section 7 of the
         Financing Agreement.

5.12.    No Limitations of Remedies; No Waiver. It is understood and agreed that
         the rights and remedies herein enumerated are not intended to be
         exhaustive but are in addition to any other rights or remedies provided
         at law, in equity, by contract (including, without limitation, the
         other Loan Documents) or otherwise. The Lender shall have the absolute
         right in its sole discretion to determine the order in which its rights
         and remedies are to be exercised, and its exercise of any right or
         remedy shall

                                      -10-
<PAGE>

         not preclude the exercise of any other rights or remedies or be deemed
         to be a waiver thereof. Grantor hereby waives diligence, notice of
         intent to accelerate, notice of acceleration, demand, presentment and
         protest and any notices thereof as well as notice of nonpayment. No
         delay or omission of the Lender to exercise any right or remedy
         hereunder, whether before or after the happening of any Event of
         Default, shall impair any such right or shall operate as a waiver
         thereof or as a waiver of any such Event of Default. No single or
         partial exercise by the Lender or Grantor of any right or remedy
         precludes any other or further exercise thereof, or precludes any other
         right or remedy. A waiver on any one occasion shall not be construed as
         a bar to, or waiver of, any right or remedy on any future occasion. No
         waiver of any right or remedy provided for herein shall be effective as
         a waiver unless it is in writing and signed by the Lender.

5.13.    Assignment. This Agreement may be assigned by the Lender and shall be
         for the benefit of each of its successors, assignees or transferees,
         and shall cover any Obligations at the time of assignment or transfer
         as well as any and all future Obligations, loans, advances or
         extensions of credit made to the Companies by, or otherwise owed by
         Grantor to such assignee or transferee.

5.14.    Survival. The representations, covenants and agreements of Grantor
         herein contained shall survive the date hereof, and shall be deemed to
         have been remade on and as of the date on which any additional
         Obligations are created.

5.15.    Counterparts. This Agreement may be executed in any number of
         counterparts, each of which when so executed shall be deemed an
         original and such counterparts shall together constitute but one and
         the same document.

                                      -11-
<PAGE>

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the date set forth above.

                                         GRANTORS:
                                         ---------

                                                  Harvard Industries, Inc.

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

                                                  Doehler-Jarvis, Inc.

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

                                                  Hayes-Albion Corporation

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

                                                  Harman Automotive, Inc.

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

                                                  Harvard Industries Risk
                                                  Management, Inc.

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

Agreed and Accepted as of
the date set forth above

HILCO CAPITAL LP

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

<PAGE>

                                   SCHEDULE A

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                       IN

                                     PATENTS

United States Patent and Trademark Office

Gentlemen:

         Please be advised that pursuant to the Grant of Security Interest in
Intellectual Property dated as of May 31, 2001 (as the same may be amended,
modified, extended or restated from time to time, the "IP Security Agreement")
by and between [Entity Name], a [______________] corporation ("Grantor"), and
Hilco Capital LP ("Lender"), Grantor has granted to the Lender a continuing
security interest in and a continuing lien upon, the patents and patent
applications shown on Annex I attached hereto.

         Grantor and the Lender hereby acknowledge and agree that the security
interest in the foregoing patents and patent applications (i) may only be
terminated in accordance with the terms of the IP Security Agreement and (ii) is
not to be construed as an assignment or license of any patent or patent
application.

                                           Very truly yours,

                                           [Entity Name]
                                           a [_______________] corporation

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

<PAGE>

STATE OF NEW YORK
                       ss.:
COUNTY OF NEW YORK

                  On this ____ day of _______________, 200_, before me
personally came ____________________, to me known to be the person who executed
the foregoing instrument, and who, being duly sworn by me, did depose and say
that he is the _______________ of ____________________, a _______________
corporation, and that he executed the foregoing instrument in the firm name of
____________________, and that he had authority to sign the same, and he
acknowledged to me that he executed the same as the act and deed of said firm
for the uses and purposes therein mentioned.

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

<PAGE>

                                     ANNEX I

                                     PATENTS

       Patent No.           Description of Patent Item        Date of Patent
-----------------------  --------------------------------  ---------------------

                               PATENT APPLICATIONS

         Patent               Description of Patent           Date of Patent
     Applications No.              Applied For                 Applications
-----------------------  --------------------------------  ---------------------

<PAGE>

                                   SCHEDULE B

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                   TRADEMARKS

United States Patent and Trademark Office

Gentlemen:

         Please be advised that pursuant to the Grant of Security Interest in
Intellectual Property dated as of May 31, 2001 (as the same may be amended,
modified, extended or restated from time to time, the "IP Security Agreement")
by and between [Entity Name], a [__________________] corporation (the "Grantor"
), and Hilco Capital LP ("Lender"), Grantor has granted to the Lender a
continuing security interest in and continuing lien upon, the trademarks and
trademark applications shown on Annex I attached hereto:

         Grantor and the Lender hereby acknowledge and agree that the security
interest in the foregoing trademarks and trademark applications (i) may only be
terminated in accordance with the terms of the IP Security Agreement and (ii) is
not to be construed as an assignment or license of any trademark or trademark
application.

                                           Very truly yours,

                                           [Entity Name]
                                           a [_______________] corporation

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

<PAGE>

STATE OF NEW YORK
                       ss.:
COUNTY OF NEW YORK

                  On this ____ day of _______________, 200_, before me
personally came ____________________, to me known to be the person who executed
the foregoing instrument, and who, being duly sworn by me, did depose and say
that he is the _______________ of ____________________, a _______________
corporation, and that he executed the foregoing instrument in the firm name of
____________________, and that he had authority to sign the same, and he
acknowledged to me that he executed the same as the act and deed of said firm
for the uses and purposes therein mentioned.

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

<PAGE>

                                     ANNEX I

                                   TRADEMARKS

     Trademark No.        Description of Trademark Item      Date of Trademark
-----------------------  --------------------------------  ---------------------

                             TRADEMARK APPLICATIONS

      Trademark             Description of Trademark         Date of Trademark
   Applications No.               Applied For                   Applications
-----------------------  --------------------------------  ---------------------

<PAGE>

                                   SCHEDULE C

                                     NOTICE

                                       OF

                           GRANT OF SECURITY INTEREST

                                       IN

                                   COPYRIGHTS

United States Copyright Office

Gentlemen:

         Please be advised that pursuant to the Grant of Security Interest in
Intellectual Property dated as of May 31, 2001 (as the same may be amended,
modified, extended or restated from time to time, the "IP Security Agreement")
by and between [Entity Name], a [__________] corporation (the "Grantor"), and
Hilco Capital LP ("Lender"), Grantor has granted to the Lender a continuing
security interest in and a continuing lien upon, the copyrights and copyright
applications shown on Annex I attached hereto.

         Grantor and the Lender hereby acknowledge and agree that the security
interest in the foregoing copyrights and copyright applications (i) may only be
terminated in accordance with the terms of the IP Security Agreement and (ii) is
not to be construed as an assignment or license of any copyright or copyright
application.

                                           Very truly yours,

                                           [Entity Name]
                                           a [_______________] corporation

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

<PAGE>

STATE OF NEW YORK
                       ss.:
COUNTY OF NEW YORK

                  On this ____ day of _______________, 200_, before me
personally came ____________________, to me known to be the person who executed
the foregoing instrument, and who, being duly sworn by me, did depose and say
that he is the _______________ of ____________________, a _______________
corporation, and that he executed the foregoing instrument in the firm name of
____________________, and that he had authority to sign the same, and he
acknowledged to me that he executed the same as the act and deed of said firm
for the uses and purposes therein mentioned.

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

<PAGE>

                                     ANNEX I

                                   COPYRIGHTS

    Copyright No.            Description of Copyright        Date of Copyright
-----------------------  --------------------------------  ---------------------

                             COPYRIGHT APPLICATIONS

      Copyright             Description of Copyright          Date of Copyright
   Applications No.               Applied For                   Applications
-----------------------  --------------------------------  ---------------------

<PAGE>

                            SCHEDULE FOREIGN PATENTS

<PAGE>

                           SCHEDULE FOREIGN TRADEMARKS

<PAGE>

                                   SCHEDULE D

                    PATENT, TRADEMARK AND COPYRIGHT LICENSES

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00026-of-00352.parquet"}]]