Document:

<PAGE>   1
                                                                   Exhibit 10.21

                                  July 3, 2001

Mr. Edward J. Seibolt
8 Beauclaire Lane
Fairport, New York  14450

Dear Ed:

I am delighted to formally extend to you our offer to join the AAi.FosterGrant
team. Everyone on our team enjoyed meeting you and is excited about your joining
us. You are the last piece in the puzzle to growth and prosperity. As I am sure
you heard from all of us, this is an exciting place to work with lots of
challenges and a great opportunity to contribute to the success of the company!

This letter summarizes the offer of employment made to you by AAi.FosterGrant,
Inc. ("Company") and is valid until Wednesday, July 11, 2001.

1.       POSITION: Vice President - Sales

2.       REPORTING RELATIONSHIP: President & CEO.

         a.)      BASE SALARY: Your base salary will be $4038.46 weekly
         ($210,000 annualized)

3.       BENEFITS: As a full time employee of the Company you will become
         eligible for our ERISA benefits programs as are in effect from time to
         time, including,  but not limited to:

         -        Medical and Dental insurance

         -        Life insurance

         -        401(k) program after one year of service

         -        3 Weeks Vacation per year

         A summary of our current benefits will be forwarded under separate
cover.

4.       ANNUAL BONUS: You will participate in the FY `01  performance  bonus
         plan at the 30% (pro rata) base salary level based equally on your
         attainment of personal goals and the Company's performance against
         annual corporate business goals.

5.       STOCK OPTIONS: As a corporate executive you will be eligible to
         participate in a future Long Term Incentive plan, if implemented by
         the Company.

<PAGE>   2

6.       PERFORMANCE  REVIEW: In accordance with company policy you will be
         given a ninety- (90) day  non-financial  review.  A one (1) year
         performance and salary review will be given on or about one (1) year
         from your date of hire and every year thereafter.

7.       PROPRIETARY RIGHTS/NON-COMPETITION:  Attachment A shall apply.

8.       RELOCATION: TBD. If you resign or are terminated by the Company for
         cause within six (6) months of your start date, you shall repay the
         Company any relocation payments made, as follows: Total x (6 - number
         of months employed) x 16.67%.

9.       START DATE: Monday, July 30, 2001 with a reporting date of Monday,
         July 30, 2001

If you are in agreement with the foregoing, please signify by signing below and
at Attachment B.

Ed, we believe that you have the skills, experience, intellect and energy level
that will lead us to revenue growth. We look forward to your joining our team.

Sincerely,

AAi.FosterGrant, Inc.                       Agreed and Accepted:

By /s/ John R. Ranelli                      By /s/ Edward J. Seibolt
  --------------------------------             ---------------------------------
   John R. Ranelli                             Edward J. Seibolt
   President/CEO

Includes:
Attachment A:  Proprietary Rights/Non-Competition Agreement
Attachment B:  Special Provision/Severance

* AAi.Foster Grant, Inc. Verifies the identity and employment authorization of
all new hires, pursuant to the Immigration and Nationality Act. In order to
comply with this legal obligation, we must complete and Employment Eligibility
form for your review within three days of hire. Enclosed is an I-9 form for your
review. Please note that you will need to provide one document from "List A" OR
one document from "List B" AND one document from "List C" of the form. If you
have any questions, please contact Sandra DaRocha, AAi.FosterGrant, Inc.

<PAGE>   3

ATTACHMENT A

                  PROPRIETARY RIGHTS/NON-COMPETITION AGREEMENT

         For purposes of this Agreement, the following are collectively
referred to as "Company": AAi.FosterGrant, Inc. and any other corporation,
entity or person, now or hereafter controlled by, controlling or under common
control with Company. "I" shall mean Edward J. Seibolt.

         I acknowledge that (1) Company is in the business of providing jewelry,
small leather goods, reading glasses and sunglasses and other accessories sales
and services to numerous customers, and expends significant resources in
developing, marketing and selling its services and products, and in developing
information which is not generally known to others and which is entitled to
protection from improper disclosure and use; (2) I will occupy a position of
special value to Company and, in the discharge of duties customary to that
position, I will have access to Company's vital and unique business information
which allows Company to gain a competitive edge over competitors; and (3) I will
have close, regular contact and relationships with Company's other employees
and, because of the personal nature thereof, such employees will develop
identification with me, rather than the Company itself, could create the
potential for my appropriation of such relationships developed on Company's
behalf and expense.

         I further acknowledge that an essential element of maintaining
Company's relationships with its customers is the development and maintenance of
personal contacts with vendor and customer personnel who are responsible for
obtaining Company services and products and, towards that end, Company (1)
encourages employees, including me, to become personally acquainted with vendor
and customer personnel and (2) provides employees, including me, access to
information gathered by Company about vendors and customers. This policy
represents a significant, costly investment by Company, to the extent additional
manpower is necessary to develop such contacts and relationships and gather such
information. Because of the personal nature of such contacts and relationships,
Company's vendors and customers commonly develop identification with employees,
including me, rather than Company itself. Such identification creates potential
for my appropriation of the benefits of relationships developed with vendors and
customers on Company's behalf and expense.

        In this Agreement, Company's information, data and knowledge is known as
Proprietary Materials. It includes such information, data and knowledge
developed or obtained by or on behalf of Company relating to, used in connection
with or reasonably likely to be useful to any of Company's businesses, ventures,
research, investigations or activities, including but not limited to all of
Company's trade secrets, products, discoveries, ideas, inventions, methods,
improvements, concepts, developments, methods, designs, drawings, works,
processes, know-how, computer programs, internal policies and procedures,
vendors, customers, contacts, prospects, financial information, business
records, marketing practices and any papers labeled "secret," "confidential," or
"proprietary," as well as any confidential information of any of Company's
customers provided to Company. I understand that each of the foregoing
constitutes Proprietary Materials even if conceived, made, developed, created or
first reduced to practice by me during my term of employment with Company, and
whether or not (1) I did so at the request or suggestion of Company, (2) they
resulted from or were suggested by any work that I have performed or may perform
for Company, (3) I did the work alone or in conjunction with others, (4) I did
the work during regular hours of work or otherwise, or at Company's place of
business or elsewhere, and (5) the Proprietary Materials are patentable or
copyrightable by me or someone else. Notwithstanding the foregoing, Company and
I agree that Proprietary Materials will not include any information, data or
knowledge that I can establish by written evidence as having been conceived,
made or reduced to practice by me which was created or conceived without use of
Company resources, outside of regular Company business hours and that is
unrelated to or reasonably unlikely to be useful to Company.

         In order to provide greater comfort to Company that it can continue to
share its Proprietary Materials with me without fear of appropriation thereof,
and to clarify our common understanding concerning our mutual responsibilities,
I am entering into this Agreement. I have read it carefully so that I may
understand its importance.

<PAGE>   4

As a condition to my employment and continued employment, and in consideration
of the premises and the compensation that I accept in connection with such
employment, I agree as follows:

        1. During my employment and thereafter, I shall not, in any way,
directly or indirectly, disclose or appropriate to my own use, or to the use of
any party other than Company, the Proprietary Materials. I shall use my best
efforts to protect the Proprietary Materials from disclosure or misuse, and
inform an executive officer of Company immediately upon learning of any improper
disclosure or misuse of Proprietary Materials by me or by any other employee or
person. I shall not copy or remove from Company's premises any media, papers,
drawings or models relating to or containing any of the Proprietary Materials,
except to the extent necessary in the course of such employment.

         2. During the term of such employment and upon termination of my
employment, I shall promptly and fully disclose to an executive officer of
Company any Proprietary Materials of which I have knowledge.

        3. The Proprietary Materials shall at all times be the exclusive
property of Company, although I am aware that in the absence of this Agreement I
may have been entitled to rights in some of the Proprietary Materials.
Accordingly, I agree that all Proprietary Materials consisting of writings or
works (including but not limited to computer software program codes) shall be
considered works made for hire under the copyright laws, and therefore owned by
Company. So as to assure Company's exclusive rights in the Proprietary
Materials, I hereby assign, transfer and give to Company my entire right, title
and interest in and to the Proprietary Materials, including but not limited to
all rights throughout the world and any renewals and extensions associated
therewith. At the request of Company, during the term of my employment and
forever thereafter, I shall (a) sign, verify, acknowledge, deliver and file any
documents necessary or advisable for Company to obtain ownership of the
Proprietary Materials, including, at Company's expense, the issuance of patents
or copyrights to Company with respect to the Proprietary Materials, and (b)
otherwise assist Company in every reasonable manner in obtaining any of its
rights in the Proprietary Materials (including but not limited to providing
testimony at legal proceedings). I hereby irrevocably appoint Company as my
attorney-in-fact (which appointment shall be deemed a power coupled with an
interest) with full powers of substitution and delegation, to execute, verify,
acknowledge and deliver any such documents.

         4. Upon the termination of my employment for any reason, or if Company
shall request sooner, I shall promptly deliver to an executive officer of
Company all media, papers, drawings, models and other existing material in my
possession or control relating to or containing any of the Proprietary
Materials.

         5. I shall not disclose to Company any knowledge, data or information
which, to my knowledge, another company may consider to be its confidential
information, trade secrets or proprietary information. I am not subject to any
other agreements, whether in writing or verbally, with anyone else that would
prohibit, restrict or interfere with my employment or fulfilling my obligations
under this Agreement.

         6. Were I to leave the Company's employment and utilize my
administrative, merchandise, financial, technological, marketing and sales
skills in competition with the Company, the results would be materially adverse
to Company. Accordingly, during such employment and during the twelve (12) month
period following the termination of my employment with Company (the
"non-competition period"), I shall not engage in or carry on, in any way,
directly or indirectly, either for myself or as a member of a partnership or as
a stockholder or investor (except for ownership of securities, not exceeding 5%
of any class, of a corporation traded on a national securities exchange) or as
an officer, director, employee, agent, representative, advisor or consultant of
any entity (other than Company), any business similar to or competing with any
business carried on by Company or its successors at the time of the termination
of my employment, or directly or indirectly related to the Business and to which
I have been exposed at any time during such employment, in the United States or
any other country in which Company does business or engages in activities at the
time of the termination of such employment. This agreement does not include any
retail operation that does not currently or, in the 5 years prior to execution
of this agreement, conduct business with the Company or one of it's
Subsidiaries.

         7. I shall not, during the non-competition period, in any way, directly
or indirectly (except in the course of such employment), call upon, solicit,
advise or otherwise do or attempt to do, business with any clients,

<PAGE>   5

customers or accounts of Company with whom I had any dealings at any time during
the course of such employment, or take away or interfere or attempt to interfere
with any custom, trade, business or patronage of Company, or interfere with or
attempt to interfere with any officers, employees, representatives, advisors,
consultants or agents of Company, or induce or attempt to induce any of them to
leave the service of Company or violate agreements with it. At the termination
of my employment, Company shall supply to me a written listing of clients,
customers or accounts of Company.

         8. The foregoing shall be deemed to be a series of separate covenants,
one for each county of each state or territory of the United States and one for
each and every country in which Company does business or engages in activity. If
a court shall refuse to enforce all of such separate covenants, then such
unenforceable covenants shall be deemed eliminated for the purpose of such
proceedings to the extent necessary to permit the remaining separate covenants
to be enforced. If a court refuses to enforce any one or more of such separate
covenants because the time thereof is deemed to be excessive or unreasonable,
then such covenants, which would otherwise be unenforceable due to such
excessive or unreasonable period of time, shall be enforced for such lesser
period of time as deemed reasonable and not excessive by such court.

          9. I shall comply with this Agreement even after the termination of my
employment for any reason, and I shall perform each and every obligation set
forth in this Agreement without any further payment or compensation to me,
except for any reasonable out-of-pocket expenses incurred at the request of
Company.

           10. It is understood and agreed that any breach of this Agreement is
likely to result in irreparable injury to Company, and that the remedy at law
alone will be an inadequate remedy for such breach, in that in addition to any
other remedy Company may have, Company shall be entitled to enforce my specific
performance of this Agreement, and to seek both temporary and permanent
injunctive relief (to the extent permitted by law) without the necessity of
proving actual damages.

                                              /s/ Edward J. Seibolt
                                              -------------------------------
                                              Edward J. Seibolt

<PAGE>   6

                                  ATTACHMENT B

                          SPECIAL PROVISIONS/SEVERANCE

         1. This letter sets forth the terms of employment, and does not
constitute or promise employment for a specific term. Either you or we can
terminate employment for any reason. Notwithstanding the foregoing, if the
Company for other than cause terminates your employment, then so long as you are
in compliance with the terms of this letter agreement, including all
attachments. Company shall pay to you a severance consisting of payments on the
first business day of each of the six (6) months immediately succeeding the date
of termination of your employment equal to 1/12th of your Base Salary in effect
on the date of termination, reduced by any compensation for services earned or
received by you from third parties during the severance period. The severance
program will also provide benefit continuation for the entire severance period.
For purposes of the prior sentence, "cause" shall mean: (a) your permanent
disability under Company's long-term disability insurance coverage; (b) failure
to devote full time and best efforts to the performance of your duties; (c)
commission of an act of gross negligence, dishonesty, fraud, gross
insubordination, malfeasance, disloyalty, bad faith or breach of trust in the
performance of your duties; (d) failure to observe the agreements set forth in
the agreements attached as ATTACHMENT A; (e) commit a felony or act which, in
the judgment of the Board of Directors of Company, subjects you or Company to
public disrespect, scandal or ridicule so as to materially and adversely affect
the utility of your services to Company; or (f) refuse to perform duties
assigned to you in good faith or violate or fail to observe any lawful business
instruction or lawful business policy established by Company with respect to the
operation of its business and affairs or fail to, or refuse to, substantially
perform your duties; and with respect to items (b) and (f), after a written
notice is delivered by Company, which specifically identifies the manner in
which you have become subject to termination for cause, if not cured (if such
matter is susceptible of cure) within twenty (20) days after such written
notice.

     2. This Agreement shall be governed by and construed in accordance with the
laws of the State of Rhode Island, without regard to its conflict of laws rules.
Employee agrees and consents to personal jurisdiction and service in venue in
any federal or state court within Rhode Island having subject matter
jurisdiction, for purposes of any action, suit or proceeding arising out of or
relating to this Agreement. Employee waives trial by jury in any such action,
suit or proceeding.

      AAi.FosterGrant, Inc.

     By /s/ John R. Ranelli                          /s/ Edward J. Seibolt
       ------------------------------               ----------------------------
     John R. Ranelli                                Edward J. Seibolt
     President/CEO<PAGE>   1

                                                                    EXHIBIT 10.1
                                                                    ------------

--------------------------------------------------------------------------------
                                 THIRD AMENDMENT
                                       TO
                  FOURTH AMENDED AND RESTATED CREDIT AGREEMENT
--------------------------------------------------------------------------------

     Third Amendment dated as of May 8, 2001 to the Fourth Amended and Restated
Credit Agreement (the "Amendment"), by and among HPSC, INC., a Delaware
corporation (the "Borrower"), AMERICAN COMMERCIAL FINANCE COMPANY, a Delaware
corporation (the "Guarantor" or "ACFC"), FLEET NATIONAL BANK and the other
lending institutions listed on SCHEDULE 1 to the Credit Agreement (as
hereinafter defined) (the "Banks"), Fleet National Bank as agent for the Banks
(in such capacity, the "Agent"), and Fleet Securities, Inc. as arranger,
amending certain provisions of the Fourth Amended and Restated Credit Agreement
dated as of May 12, 2000 (as amended and in effect from time to time, the
"Credit Agreement") by and among the Borrower, the Guarantor, the Banks and the
Agent. Terms not otherwise defined herein which are defined in the Credit
Agreement shall have the same respective meanings herein as therein.

     WHEREAS, the Borrower and the Banks have agreed to modify certain terms and
conditions of the Credit Agreement as specifically set forth in this Amendment;

     NOW, THEREFORE, in consideration of the premises and the mutual agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

     SS.1.  AMENDMENTS TO THE CREDIT AGREEMENT.

     (a) Section 1.1 of the Credit Agreement is hereby amended by amending and
restating in their entirety the following definitions:

     BORROWING BASE. At the relevant time of reference thereto, an amount
determined by the Agent by reference to the most recent Borrowing Base Report
delivered to the Banks and the Agent pursuant to ss.9.4(e), which is equal to
the sum of the following:

          (i)    80% of Eligible Accounts Receivable; plus

          (ii)   50% of the Residual Value of Equipment, provided, that the
                 amount included in the Borrowing Base pursuant to this clause
                 (ii) shall not exceed $2,000,000; minus

          (iii)  the Reserve Amount;

PROVIDED, HOWEVER, that (x) the net amount attributable to ACFC Receivables
included in the Borrowing Base shall not comprise more than 50% of the Borrowing
Base and (y) (A) the aggregate gross amount of Practice Receivables included as
Eligible Accounts Receivable shall not exceed $30,000,000, (B) and the net
amount attributable to Practice Receivables included in the Borrowing Base shall
not comprise more than 50% of the Borrowing Base and (C) the aggregate gross
amount of Progress Payment Notes included as Eligible Accounts Receivable shall
not exceed $10,000,000. The Agent may, in its

<PAGE>   2

                                      -2-

discretion, from time to time, upon five (5) days' prior notice to the Borrower,
reduce the lending formula with respect to Eligible Accounts Receivable to the
extent that the Agent determines that: (a) the dilution with respect of the
Accounts Receivable for any period has increased in any material respect or may
be reasonably anticipated to increase in any material respect above historical
levels, or (b) the general creditworthiness of account debtors or other obligors
of the Borrower has declined. In determining whether to reduce the lending
formula, the Agent may consider events, conditions, contingencies or risks which
are also considered in determining Eligible Accounts Receivable or in
establishing the Reserve Amount.

     RESERVE AMOUNT. $2,000,000, provided that the Agent may, in its discretion,
from time to time, upon five (5) days' prior notice to the Borrower, revise the
Reserve Amount (a) to reflect events, conditions, contingencies or risks which
do or may have a material adverse effect on the business or financial condition
of the Borrower and its Subsidiaries or (b) to reflect the belief of the Agent
that any Borrowing Base Report or other collateral report or financial
information furnished by or on behalf of the Borrower to the Agent or any of the
Banks is or may have been incomplete, inaccurate or misleading in any material
respect. The Reserve Amount may include, but is not limited to: payables based
upon past due normal trade terms; taxes and other governmental charges, whether
ad valorem, personal or real property or otherwise and whether or not the tax
claims therefor may have priority over the Agent's security interest in any of
the Collateral.

     REVOLVING CREDIT LOAN MATURITY DATE. May 6, 2002.

     TERM LOAN MATURITY DATE. May 2, 2003.

     (b) Section 1.1. of the Credit Agreement is hereby amended by inserting the
following new definitions in the appropriate alphabetical sequence:

     CONSOLIDATED TOTAL FUNDED DEBT. With respect to the Borrower and its
Subsidiaries, the sum, without duplication, of (a) the aggregate amount of
Indebtedness of the Borrower and its Subsidiaries, on a consolidated basis,
whether recourse or non-recourse, relating to (i) the borrowing of money or the
obtaining of credit, including, without limitation, the issuance of notes or
bonds, (ii) all sales under FASB 125 or 140 by the Borrower or any of its
Subsidiaries of (A) accounts or general intangibles for money due or to become
due, (B) chattel paper, instruments or documents creating or evidencing a right
to payment of money or (C) other receivables (collectively "RECEIVABLES"),
whether pursuant to a purchase facility or otherwise, other than in connection
with the disposition of the business operations of such Person relating thereto
or a disposition of defaulted receivables for collection and not as a financing
arrangement, and together with any obligation of such Person to pay any
discount, interest, fees, indemnities, penalties, recourse, expenses or other
amounts in connection therewith, (iii) the deferred purchase price of assets
(other than trade payables incurred in the ordinary course of business), (iv) in
respect of any Capitalized Leases, and (v) the maximum drawing amount of all
letters of credit outstanding PLUS (b) Indebtedness of the type referred to in
clause (a) of another Person guaranteed by the Borrower or any of its
Subsidiaries.

     CONSOLIDATED RECOURSE DEBT. With respect to the Borrower and its
Subsidiaries the aggregate amount of Indebtedness of the Borrower and its
Subsidiaries, on a consolidated

<PAGE>   3

                                      -3-

basis, which is recourse to the Borrower or ACFC, including without limitation,
Indebtedness under this Credit Agreement and under the Sales Agreements.

     (c) Clause (xii) of the definition of "Eligible Accounts Receivable" is
hereby amended to read in its entirety as follows:

          (xii) that are not due from any single Customer if, after including
     such Accounts Receivable, the Borrowing Base will be comprised of more than
     $3,000,000 of Accounts Receivable owing from such Customer PROVIDED,
     HOWEVER that Practice Receivables and ACFC Receivables shall not be
     included when calculating this $3,000,000 Customer concentration
     limitation;

     (d) The definition of "Eligible Accounts Receivable" is further hereby
amended by adding the following sentences to the end thereof:

     Furthermore, Eligible Accounts Receivable shall not include any Customer
     Receivable that has been rewritten more than twice. General criteria for
     Eligible Accounts Receivable may be established and revised from time to
     time by the Agent.

     (e) Clause (e) of the definition of "Interest Period" is hereby amended by
inserting the words "Term Loan" before the words "Maturity Date" in both places
where they appear in such clause.

     (f) Section 2.3.2 of the Credit Agreement is hereby amended by deleting the
dollar amount "$125,000,000" and substituting in place thereof the dollar amount
"$100,000,000".

     (g) Section 2.5 of the Credit Agreement is hereby amended by:

          (i) replacing the table therein in its entirety with the following
              table:

<TABLE>
<CAPTION>
                                                                    Applicable             Applicable
                                         Applicable Base         Eurodollar Rate           Commitment
                                           Rate Margin               Margin                 Fee Rate
                  Debt Ratio               (Per Annum)             (Per Annum)             (Per Annum)
                  ----------               -----------           ---------------           -----------

         <S>                               <C>                   <C>                       <C>
          LEVEL I:  greater than or           1.25%                   2.75%                   0.75%
              equal to 7.00:1.00

             LEVEL II:  less than             1.00%                   2.50%                  0.625%
            7.00:1.00 and greater
          than or equal to 6.50:1.00

            LEVEL III:  less than             0.75%                   2.25%                   0.50%
                  6.50:1.00
</TABLE>

<PAGE>   4

                                      -4-

          (ii)   inserting the following sentence after such table in ss.2.5(b):

               For purposes of determining the Debt Ratio in the above table for
               the fiscal quarters ending December 31, 2000, March 31, 2001,
               June 30, 2001, September 30, 2001 and December 31, 2001, the
               Newco Transaction Costs and the effects of FASB 133 shall be
               excluded from such calculation.

          (iii)  inserting the following sentence at the end of the first
                 sentence in ss.2.5(c):

               Notwithstanding the foregoing, the Applicable Margin and the
               Applicable Commitment Fee Rate payable during the period
               commencing on May 8, 2001 through June 1, 2001 shall be the
               Applicable Margin and the Applicable Commitment Fee Rate set
               forth in Level II above.

     (h) Section 4.3 of the Credit Agreement is hereby amended by changing the
date "June 30, 2001" in the seventh line thereof to "June 30, 2002".

     (i) Section 9.4(e) of the Credit Agreement is hereby amended and restated
in its entirety to read as follows:

          (e) within three (3) Business Days after the end of each calendar
     week, a Borrowing Base Report setting forth the Borrowing Base as at the
     end of such week;

     (j) Section 9.9.2 is hereby amended by deleting the dollar amount "$25,000"
set forth in the final clause of such section and substituting in place thereof
the dollar amount "$75,000" and adding the following sentence to the end
thereof:

     Such collateral reports shall in any event be obtained at least once each
     calendar year and shall under normal circumstances be obtained three times
     each calendar year.

     (k) Section 10.1(m) of the Credit Agreement is hereby amended to read in
its entirety as follows:

          (m) Indebtedness incurred by the Borrower pursuant to the Sale
     Agreements, PROVIDED THAT no Event of Default has occurred and is
     continuing at the time such Indebtedness is incurred and PROVIDED FURTHER
     that the sum of (i) aggregate outstanding principal amount of such
     Indebtedness of the Borrower under such Sale Agreements and (ii) other
     proceeds received by the Borrower under such Sale Agreements and not
     characterized as Indebtedness shall not exceed $35,000,000 at any time.

     (l) Section 10.3(e) of the Credit Agreement is hereby amended to read in
its entirety as follows:

<PAGE>   5

                                      -5-

          (e) Investments with respect to Indebtedness permitted by ss.10.1(j)
     so long as (i) such entities remain Subsidiaries of the Borrower, (ii) the
     aggregate amount of incremental Investments made by the Borrower and its
     subsidiaries in ACFC does not exceed $25,000,000 during the period of
     twelve consecutive months commencing on May 1, 2001 and does not exceed
     $15,000,000 thereafter;

     (m) Section 11.2 of the Credit Agreement is hereby amended by deleting the
date "October 1, 1999" in the fifth line thereof and substituting therefor the
dated "April 1, 2001".

     (n) Section 11.8 of the Credit Agreement is hereby deleted.

     (o) Section 11.10 of the Credit Agreement is hereby amended by replacing
"50%" in the fourth line thereof with "25%".

     (p) Section 11 of the Credit Agreement is hereby amended by inserting the
following new Sections 11.11 and 11.12 before the provision at the end thereof:

          11.11. CONSOLIDATED RECOURSE DEBT TO CONSOLIDATED TANGIBLE CAPITAL
     FUNDS. The Borrower will not permit at any time the ratio of (i)
     Consolidated Recourse Debt to (ii) Consolidated Tangible Capital Funds to
     be greater than 2.50:1.00.

          11.12. CONSOLIDATED TOTAL FUNDED DEBT TO CONSOLIDATED TANGIBLE CAPITAL
     FUNDS. The Borrower will not permit at any time the ratio of (i)
     Consolidated Total Funded Debt to (ii) Consolidated Tangible Capital Funds
     to be greater than 13.5:1.00.

     (q) The provision at the end of SECTION 11 of the Credit Agreement is
hereby amended to read in its entirety as follows:

     For purposes of determining compliance with (a) ss.11.1 for the fiscal
     quarters ending December 31, 2000, March 31, 2001, June 30, 2001, September
     30, 2001 and December 31, 2001, (b) ss.11.2 for the fiscal quarters ending
     December 31, 2000 and March 31, 2001, and (c) ss.11.3 for the fiscal
     quarters ending December 31, 2000, March 31, 2001, June 30, 2001 and
     September 30, 2001, the Newco Transaction Costs shall be excluded from such
     calculation. With respect to each such quarter, each compliance certificate
     delivered pursuant to SECTION 9.4(c) shall show the amounts and categories
     of adjustments necessary to exclude such Newco Transaction Costs from the
     relevant financial statements of the Borrower and its Subsidiaries in a
     manner satisfactory to the Agent. In addition, the effects of FASB 133
     shall be excluded for purposes of determining compliance with each of the
     financial covenants contained in ss.11 of the Credit Agreement.

     SS.2. AMENDMENT TO SCHEDULE 1 TO CREDIT AGREEMENT. SCHEDULE 1 to the Credit
Agreement is hereby replaced by the SCHEDULE 1 attached to this Amendment.

<PAGE>   6

                                      -6-

     SS.3. FEES. On the date of the closing of the Third Amendment (the "Third
Amendment Closing Date"), the Borrower will pay to the Agent for the account of
each Bank the amendment fee in the amount set forth below:

         Fleet National Bank                         $35,000.00

         KeyBank National Association                $18,500.00

         National Bank of Canada                     $10,000.00

         First Massachusetts Bank, N.A.              $10,000.00

         Citizens Bank                               $10,000.00

         TOTAL                                       $83,500.00

The Borrower shall pay to the Agent on the Third Amendment Closing Date certain
fees as previously agreed to in writing by and between the Borrower and the
Agent. The Borrower shall pay to the Agent annually in advance, for the Agent's
own account, a non refundable Agent's fee in the amount previously agreed to in
writing by and between the Borrower and the Agent.

     SS.4. CONDITIONS TO EFFECTIVENESS. This Amendment shall not become
effective until the Agent receives (a) a counterpart of this Amendment, executed
by the Borrower, the Guarantor and each of the Banks, (b) payment by the
Borrower of the fees referred to ss.3 hereof, (c) an officer's certificate and a
legal opinion of counsel to the Borrower, each in a form satisfactory to the
Agent and (d) such other documents including without limitation, replacement
Notes to reflect changes in Commitments and Commitment Percentages, if any, and
uniform commercial code financing statements, as the Agent may request.

     SS.5. REPRESENTATIONS AND WARRANTIES. The Borrower hereby repeats, on and
as of the date hereof, each of the representations and warranties made by it in
SECTION 8 of the Credit Agreement, and such representations and warranties
remain true as of the date hereof (except to the extent of changes resulting
from transactions contemplated or permitted by the Credit Agreement and the
other Loan Documents, and to the extent that such representations and warranties
relate expressly to an earlier date), PROVIDED, that all references therein to
the Credit Agreement shall refer to such Credit Agreement as amended hereby. In
addition, the Borrower hereby represents and warrants that the execution and
delivery by the Borrower of this Amendment and the performance by the Borrower
of all of its agreements and obligations under the Credit Agreement as amended
hereby are within the corporate authority of the Borrower and has been duly
authorized by all necessary corporate action on the part of the Borrower.

     SS.6. TRANSITIONAL ARRANGEMENTS. Each of the "Loans" (as defined in the
Credit Agreement) outstanding under the Credit Agreement on the date hereof
shall, for all purposes of the Credit Agreement, continue to be Loans. Upon its
receipt of any Notes to be delivered hereunder on the date hereof, each Bank
receiving a Note will promptly return to the Borrower, marked "Canceled", the
notes of the Borrower held by such Bank which are being replaced pursuant to
this Amendment, if any. On the date hereof, each of the

<PAGE>   7

                                      -7-

Banks shall pay through the Agent to each of the other Banks such amounts, if
any, as may be necessary so as to result in the outstanding amount of Loans made
by each Bank being equal to such Bank's Commitment Percentage of the aggregate
amount of Loans outstanding as of the date hereof. The Borrower and the Banks
hereby agree that all amounts paid to any Bank by any other Bank in connection
with interbank settlements with respect to Loans outstanding immediately prior
to the date hereof shall be deemed to constitute Loans under the Credit
Agreement.

     SS.7. RATIFICATION, ETC. Except as expressly amended hereby, the Credit
Agreement, the Security Documents and all documents, instruments and agreements
related thereto are hereby ratified and confirmed in all respects and shall
continue in full force and effect. The Credit Agreement and this Amendment shall
be read and construed as a single agreement. All references in the Credit
Agreement or any related agreement or instrument to the Credit Agreement shall
hereafter refer to the Credit Agreement as amended hereby.

     SS.8. NO WAIVER. Nothing contained herein shall constitute a waiver of,
impair or otherwise affect any Obligations, any other obligation of the Borrower
or any rights of the Agent or the Banks.

     SS.9. COUNTERPARTS. This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original but which together shall
constitute one and the same instrument.

     SS.10. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS (WITHOUT
REFERENCE TO CONFLICT OF LAWS).

<PAGE>   8

                                      -8-

     IN WITNESS WHEREOF, the undersigned have duly executed this Amendment as a
sealed instrument as of the date first set forth above.

                                         HPSC, INC.

                                         By: /s/ Rene Lefebvre
                                            ------------------------------------
                                            Name:  Rene Lefebvre
                                            Title: VP. CFO

                                         FLEET NATIONAL BANK, individually and
                                         as Agent

                                         By: /s/ Katherine S. Steiger
                                            ------------------------------------
                                            Name:  Katherine S. Steiger
                                            Title: Vice President

                                         KEYBANK NATIONAL ASSOCIATION

                                         By: /s/ Eric S. Christensen
                                            ------------------------------------
                                            Name:  Eric S. Christensen
                                            Title: Vice President

                                         NATIONAL BANK OF CANADA

                                         By: /s/ A. Keith Broyles
                                            ------------------------------------
                                            Name: A. Keith Broyles
                                            Title: Vice President & Manager

                                          By: /s/ Peter F. Smith
                                            ------------------------------------
                                            Name:  Peter F. Smith
                                            Title: Vice President

                                          FIRST MASSACHUSETTS BANK, N.A.

                                          By: /s/ Jon R. Sundstrom
                                            ------------------------------------
                                            Name:  Jon R. Sundstrom
                                            Title: Senior Vice President

                                          CITIZENS BANK OF MASSACHUSETTS

                                          By: /s/ Luke G. Tsokanis
                                            ------------------------------------
                                            Name:  Luke G. Tsokanis
                                            Title: Vice President

<PAGE>   9

                                      -9-

                            RATIFICATION BY GUARANTOR

     The undersigned Guarantor hereby acknowledges and consents to the foregoing
Amendment as of May 8, 2001 and agrees that the Guaranty dated as of June 23,
1994 from the undersigned in favor of the Agent and each of the Banks, as
amended by Omnibus Amendment No. 4 to Security Documents, dated as of May 12,
2000, and each of the other Security Documents to which it is a party remain in
full force and effect, and the Guarantor confirms and ratifies all of its
obligations thereunder.

                                            AMERICAN COMMERCIAL
                                            FINANCE CORPORATION

                                         By: /s/ Rene Lefebvre
                                            ------------------------------------
                                            Name:  Rene Lefebvre
                                            Title: VP

<PAGE>   10

                                       -10-

                           FOURTH AMENDED AND RESTATED
                           REVOLVING CREDIT AGREEMENT

                                   SCHEDULE 1
              Banks; Addresses; Commitments; Commitment Percentages
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------
           BANK'S NAME AND ADDRESS                         COMMITMENT            PERCENTAGE
--------------------------------------------------------------------------------------------
<S>                                                        <C>                     <C>
FLEET NATIONAL BANK                                        $35,000,000             41.92%
100 Federal Street
Boston, MA  02110
Attn:  Harvey H. Thayer, Jr.
Phone:  617-434-1996
Fax:  617-434-1574
--------------------------------------------------------------------------------------------

KEYBANK NATIONAL ASSOCIATION                               $18,500,000             22.16%
One Canal Plaza
Portland, ME 04101
Attn:  Eric Christensen
Phone:  207-874-7017
Fax:  207-874-7070
--------------------------------------------------------------------------------------------

NATIONAL BANK OF CANADA                                    $10,000,000             11.98%
One Federal Street
27th Floor
Boston, MA 02110
Attn:  Keith Broyls
Phone:  617-350-1745
Fax:  617-350-7677
--------------------------------------------------------------------------------------------

FIRST MASSACHUSETTS BANK N.A.                              $10,000,000             11.98%
7 New England Executive Park
Suite 700
Burlington, MA  01803
Attn:  Jon R. Sundstrom
PHFG Corporate Banking
Phone:  781-229-3901
Fax:  781-229-5663
--------------------------------------------------------------------------------------------

CITIZENS BANK OF MASSACHUSETTS
A MASSACHUSETTS BANK
28 State Street
Boston, MA  02109
Attn:  David Farwell
Phone:  617-725-5692
Fax:  617-725-5693
--------------------------------------------------------------------------------------------
               TOTAL                                       $83,500,000              100%
--------------------------------------------------------------------------------------------
</TABLE>

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