Document:

<PAGE>   1
                                                                EXHIBIT 4.1

                           THIRD AMENDED AND RESTATED

                                CREDIT AGREEMENT

                            DATED AS OF JULY 31, 2000

                                      AMONG

                             OXFORD AUTOMOTIVE, INC.

                                       AND

                     THE BORROWING SUBSIDIARIES PARTY HERETO

                                  AS BORROWERS

                                       AND

                      THE LENDERS AND ISSUERS PARTY HERETO,

                               CITICORP USA, INC.

                  AS ADMINISTRATIVE AGENT AND COLLATERAL AGENT

                                  COMERICA BANK

                              AS SYNDICATION AGENT

                           CREDIT SUISSE FIRST BOSTON

                             AS DOCUMENTATION AGENT

                                       AND

                            SALOMON SMITH BARNEY INC.

                          AS ARRANGER AND BOOK MANAGER

                           WEIL, GOTSHAL & MANGES LLP
                                767 FIFTH AVENUE
                         NEW YORK, NEW YORK 10153-0119

<PAGE>   2
                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                      PAGE

<S>                                                                                                   <C>
  Article I           Definitions, Interpretation and Accounting Terms..................................2
  Section 1.1.        Defined Terms.....................................................................2
  Section 1.2.        Computation of Time Periods......................................................33
  Section 1.3.        Accounting Terms and Principles; Dollar Equivalent...............................33
  Section 1.4.        Certain Terms....................................................................33

Article II        The Facilities.......................................................................34
  Section 2.1.        The Commitments..................................................................34
  Section 2.2.        Borrowing Procedures.............................................................35
  Section 2.3.        Swing Loans......................................................................38
  Section 2.4.        Letters of Credit................................................................39
  Section 2.5.        Bankers' Acceptances.............................................................43
  Section 2.6.        Reduction and Termination of the Revolving Credit Commitments....................47
  Section 2.7.        Repayment of Loans...............................................................47
  Section 2.8.        Evidence of Debt.................................................................48
  Section 2.9.        Optional Prepayments.............................................................48
  Section 2.10.       Mandatory Prepayments............................................................49
  Section 2.11.       Interest.........................................................................50
  Section 2.12.       Conversion/Continuation Option...................................................51
  Section 2.13.       Fees.............................................................................52
  Section 2.14.       Payments and Computations........................................................53
  Section 2.15.       Special Provisions Governing Eurocurrency Rate Loans.............................56
  Section 2.16.       Capital Adequacy and Breakage Costs..............................................57
  Section 2.17.       Taxes............................................................................58
  Section 2.18.       Criminal Rate of Interest........................................................59
  Section 2.19.       Substitution of Lenders..........................................................60
  Section 2.20.       Facilities Increases.............................................................60

Article III       Conditions To Loans And Letters Of Credit............................................61
  Section 3.1.        Conditions Precedent to Initial Loans and Letters of Credit......................61
  Section 3.2.        Conditions Precedent to Each Loan and Letter of Credit...........................65
  Section 3.3.        Conditions Precedent to the Aries Acquisition Borrowing..........................66

Article IV        Representations and Warranties.......................................................66
  Section 4.1.        Corporate Existence and Power....................................................67
  Section 4.2.        Corporate Authority..............................................................67
  Section 4.3.        Binding Effect...................................................................67
  Section 4.4.        Subsidiaries.....................................................................67
  Section 4.5.        Litigation.......................................................................67
  Section 4.6.        Financial Condition..............................................................67
  Section 4.7.        Use of Proceeds..................................................................68
  Section 4.8.        Consents, Etc....................................................................68
  Section 4.9.        Taxes............................................................................68
</TABLE>

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                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>
                                                                                                      PAGE

<S>                                                                                                   <C>
  Section 4.10.       Title to Properties..............................................................68
  Section 4.11.       Labor Matters....................................................................69
  Section 4.12.       ERISA............................................................................69
  Section 4.13.       Disclosure.......................................................................69
  Section 4.14.       Environmental Matters............................................................70
  Section 4.15.       Solvency.........................................................................71
  Section 4.16.       No Defaults under Certain Agreements.............................................71
  Section 4.17.       Intellectual Property............................................................71
  Section 4.18.       Preferred Stock..................................................................71
  Section 4.19.       Investment Company Act; Public Utility Holding Company Act.......................71
  Section 4.20.       Senior Subordinated Debt Documents...............................................72
  Section 4.21.       Unrestricted Subsidiaries........................................................72
  Section 4.22.       Material Agreements..............................................................72
  Section 4.23.       Compliance With Laws.............................................................72
  Section 4.24.       Aries Acquisition................................................................72
  Section 4.25.       Mexican Facility.................................................................72

Article V         Affirmative Covenants................................................................73
  Section 5.1.        Preservation of Corporate Existence, Etc.........................................73
  Section 5.2.        Compliance with Laws, Etc........................................................73
  Section 5.3.        Maintenance of Properties; Insurance.............................................73
  Section 5.4.        Reporting Requirements...........................................................74
  Section 5.5.        Accounting; Access to Records, Books, Etc........................................77
  Section 5.6.        Maintenance of Business Lines....................................................77
  Section 5.7.        Environmental Matters............................................................77
  Section 5.8.        Additional Collateral and Guaranties.............................................78
  Section 5.9.        Terms of Other Indebtedness......................................................79
  Section 5.10.       Restricted and Unrestricted Subsidiaries.........................................80
  Section 5.11.       Further Assurances...............................................................80

Article VI        Negative Covenants...................................................................81
  Section 6.1.        Financial Covenants..............................................................81
  Section 6.2.        Indebtedness.....................................................................83
  Section 6.3.        Liens............................................................................85
  Section 6.4.        Merger; Acquisitions; Etc........................................................86
  Section 6.5.        Disposition of Assets; Etc.......................................................87
  Section 6.6.        Nature of Business...............................................................88
  Section 6.7.        Dividends and Other Restricted Payments..........................................88
  Section 6.8.        Accounting Changes; Fiscal Year..................................................89
  Section 6.9.        Investments......................................................................89
  Section 6.10.       Transactions with Affiliates.....................................................91
  Section 6.11.       Sale and Leaseback and other Financing Transactions..............................91
  Section 6.12.       Negative Pledge Limitation.......................................................92
  Section 6.13.       FSC Commissions..................................................................92
  Section 6.14.       Other Agreements.................................................................92
</TABLE>

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<PAGE>   4

                                TABLE OF CONTENTS
                                  (CONTINUED)
<TABLE>
<CAPTION>

                                                                                                      PAGE

<S>                                                                                                   <C>

  Section 6.15.       Subsidiary Dividends.............................................................92
  Section 6.16.       Preferred Stock..................................................................92
  Section 6.17.       Other Indebtedness and Agreements................................................93
  Section 6.18.       Management Fees..................................................................93
  Section 6.19.       Restricted Subsidiaries..........................................................93

Article VII       Events of Default....................................................................93
  Section 7.1.        Events of Default................................................................93
  Section 7.2.        Remedies.........................................................................96
  Section 7.3.        Actions in Respect of Letters of Credit and Bankers' Acceptance..................96
  Section 7.4.        Rescission.......................................................................96

Article VIII      The Administrative Agent; The Agents.................................................97
  Section 8.1.        Authorization and Action.........................................................97
  Section 8.2.        Administrative Agent's Reliance, Etc.............................................98
  Section 8.3.        The Administrative Agent Individually............................................98
  Section 8.4.        Lender Credit Decision...........................................................98
  Section 8.5.        Indemnification..................................................................98
  Section 8.6.        Successor Administrative Agent...................................................99

Article IX        Miscellaneous........................................................................99
  Section 9.1.        Amendments, Waivers, Etc.........................................................99
  Section 9.2.        Assignments and Participations..................................................101
  Section 9.3.        Costs and Expenses..............................................................104
  Section 9.4.        Indemnities.....................................................................105
  Section 9.5.        Limitation of Liability.........................................................106
  Section 9.6.        Right of Set-off................................................................106
  Section 9.7.        Sharing of Payments, Etc........................................................107
  Section 9.8.        Notices, Etc....................................................................107
  Section 9.9.        No Waiver; Remedies.............................................................108
  Section 9.10.       Binding Effect..................................................................108
  Section 9.11.       Governing Law...................................................................108
  Section 9.12.       Submission to Jurisdiction; Service of Process; Judgment Currency...............108
  Section 9.13.       Waiver of Jury Trial............................................................109
  Section 9.14.       Marshaling; Payments Set Aside..................................................109
  Section 9.15.       Section Titles..................................................................110
  Section 9.16.       Execution in Counterparts.......................................................110
  Section 9.17.       Documents Evidence the Same Indebtedness........................................110
  Section 9.18.       Entire Agreement................................................................110
  Section 9.19.       Confidentiality.................................................................110
</TABLE>

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<PAGE>   5
SCHEDULES

Schedule I            -    Commitments
Schedule II           -    Applicable Lending Offices and Addresses for Notices
Schedule III          -    Unrestricted Subsidiaries
Schedule 4.4          -    Ownership of Subsidiaries
Schedule 4.5          -    Litigation
Schedule 4.11         -    Labor Matters
Schedule 4.14         -    Environmental Matters
Schedule 4.17         -    Intellectual Property
Schedule 4.18         -    Preferred Stock
Schedule 4.20         -    Senior Subordinated Debt Documents
Schedule 4.24         -    Aries Acquisition
Schedule 4.25         -    Mexican Facility Documents
Schedule 5.12         -    Post Closing Matters
Schedule 6.2          -    Existing Indebtedness
Schedule 6.3          -    Existing Liens
Schedule 6.9          -    Existing Investments
Schedule 6.12         -    Negative Pledge Limitations
Schedule 6.18         -    Management Fees

EXHIBITS

Exhibit A       -   Form of Assignment and Acceptance
Exhibit B-1     -   Form of Revolving Credit Note
Exhibit B-2     -   Form of Term Note
Exhibit C       -   Form of Notice of Borrowing
Exhibit D       -   Form of Letter of Credit Request
Exhibit E       -   Form of Notice of Conversion or Continuation
Exhibit F       -   Form of Opinion of Michigan Counsel for the Loan Parties
Exhibit G       -   Form of Guaranty
Exhibit H       -   Form of Pledge and Security Agreement

                                       iv
<PAGE>   6

                  THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of July
31, 2000, among OXFORD AUTOMOTIVE, INC., a Michigan corporation (the "Company"),
each of the Subsidiaries set forth on the signature pages hereof (the "Borrowing
Subsidiaries" and together with the Company, the "Borrowers"), the Lenders (as
defined below), the Issuers (as defined below), CITICORP USA, INC. ("Citicorp"),
as agent for the Lenders and the Issuers (in such capacity, the "Administrative
Agent") and as collateral agent for the Secured Parties (as defined below) (in
such capacity, the "Collateral Agent"), COMERICA BANK, in its capacity as
syndication agent for the Lenders and the Issuers (in such capacity, the
"Syndication Agent") and CREDIT SUISSE FIRST BOSTON, in its capacity as
documentation agent for the Lenders and the Issuers (in such capacity, the
"Documentation Agent").

                              W I T N E S S E T H:

                  WHEREAS, the Company, the Borrowing Subsidiaries and the
lenders party thereto are parties to a Second Amended and Restated Credit
Agreement dated as of May 14, 1999 (as amended, the "Existing Credit Agreement")
among the Company, the Borrowing Subsidiaries, the lenders party thereto, the
issuers party thereto and Bank One, Michigan, formerly known as NBD Bank, as
Agent (the "Existing Agent");

                  WHEREAS, (a) the Borrowers, the Existing Agent, the lenders
party to the Existing Credit Agreement, Citicorp and Citibank Canada (together
with Citicorp, the "Existing Lenders") have concurrently herewith entered into
the Master Assignment and Acceptance dated as of the date hereof (the "Master
Assignment Agreement") pursuant to which the lenders party to the Existing
Credit Agreement have assigned all their right, title and interest in, to and
under the Existing Credit Agreement and such other documents and delegated all
their respective obligations thereunder to the Existing Lenders and the Existing
Lenders have accepted such assignment and assumed such obligations, and (b) the
Existing Agent, Bank One, Canada, formerly known as First Chicago NBD Bank,
Canada, as collateral agent for the Lender's party to the Existing Credit
Agreement with respect to collateral in Canada (the "Existing Canadian Agent"),
the Administrative Agent, the Collateral Agent, the Bank of Montreal as Funding
Agent and the Borrowers have concurrently herewith entered in to the Assignment
and Release Agreement dated the date hereof (the "Assignment and Release
Agreement") pursuant to which the Existing Agent and the Existing Canadian Agent
have each resigned as agent and has assigned all its rights, title and interest
in, to and under the Existing Credit Agreement and the "Loan Documents" (as
defined in the Existing Credit Agreement) and delegated all its obligations
thereunder with respect thereto to the Administrative Agent or the Collateral
Agent, as applicable, and the Administrative Agent or the Collateral Agent, as
the case may be, has accepted such assignment and delegation;

                  WHEREAS, the Company, the Borrowing Subsidiaries, the Existing
Lenders, the Administrative Agent and the Collateral Agent have agreed to amend
and restate the Existing Credit Agreement to provide for certain amendments on
the terms set forth in this Agreement, which Agreement shall become effective
upon satisfaction of certain conditions precedent set forth herein;

                  WHEREAS, it is the intent of the parties hereto that this
Agreement not constitute a novation of the obligation and liabilities existing
under the Existing Credit Agreement or evidence payment of all or any of such
obligations and liabilities, that this Agreement amend and restate in its
entirety the Existing Credit Agreement, and that from and after the Effective
Date the Existing Credit Agreement be of no further force or effect except as to
evidence the incurrence of the obligations of the Borrowers thereunder and the
representations and warranties made thereunder;

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

                                       1
<PAGE>   7

                                   ARTICLE I

                DEFINITIONS, INTERPRETATION AND ACCOUNTING TERMS

                  SECTION 1.1. DEFINED TERMS. As used in this Agreement, the
following terms have the following meanings such meanings to be equally
applicable to both the singular and plural forms of the terms defined):

                  "Acceptance" means Bankers' Acceptances and BA Equivalent
Loans.

                  "Acceptance Fee" means the fee payable at the time of the
acceptance of Bankers' Acceptances established by multiplying the face amount of
such Bankers' Acceptances by the Applicable Margin and by multiplying the
product so obtained by a fraction having a numerator equal to the number of days
in the term of such Bankers' Acceptances and a denominator of 365 or 366, as the
case may be.

                  "Acknowledgment and Consent of Oxford Investment Group, Inc."
means the acknowledgment and consent to the transactions contemplated by the
Loan Documents dated as of the date hereof in form and substance satisfactory to
the Administrative Agent and executed by Oxford Investment Group, Inc.

                  "Acquirer" means the Subsidiary of the Company acquiring
Aries.

                  "Acquisition" has the meaning specified in Section 6.4.

                  "Administrative Agent" has the meaning specified in the
preamble to this Agreement; provided, however, for the purposes of Article VIII
and Sections 9.3, 9.4, 9.5, 9.9, 9.12, 9.13 and 9.14, each reference to
"Administrative Agent", shall be deemed to include a reference to Citicorp USA,
Inc., in its capacity as Collateral Agent.

                  "Affiliate" means, with respect to any Person, any other
Person which, directly or indirectly, controls, is controlled by or is under
common control with such Person, each officer, director, general partner or
joint-venturer of such Person, and each Person who is the beneficial owner of
10% or more of any class of Voting Stock of such Person. For the purposes of
this definition, "control" means the possession of the power to direct or cause
the direction of management and policies of such Person, whether through the
ownership of voting securities, by contract or otherwise.

                  "Agreement" means this Credit Agreement.

                  "Alternate Currency" means (a) the Canadian Dollar and (b) the
Euro; provided, however, that each such currency remains freely transferable
into Dollars.

                  "Applicable Lending Office" means, (a) with respect to each
Lender, its Domestic Lending Office in the case of a Base Rate Loan, and its
Eurocurrency Lending Office in the case of a Eurocurrency Rate Loan and (b) with
respect to each Canadian Lender, its Canadian Lending Office in the case of
Canadian Loans or other Canadian Revolving Credit Outstandings.

                  "Applicable Margin" means (a) during the period commencing on
the Effective Date and ending on the date which is three Business Days after the
receipt by the Administrative Agent of the Financial Statements required to be
delivered by Section 5.4(b) for the first full Fiscal Quarter ending after the
Effective Date, with respect to Loans maintained as (i) Base Rate Loans, a rate
equal to 1.25% per annum and (ii) Eurocurrency Rate Loans and BA Rate Loans, a
rate equal to 2.5% per annum, and (b) thereafter, as of any date of
determination, a per annum rate equal to the rate set forth below opposite the

                                       2
<PAGE>   8

applicable type of Loan and the then applicable Leverage Ratio (determined for
the period ending on the last day of the most recent Fiscal Quarter or Fiscal
Year, as applicable, for which Financial Statements have been delivered pursuant
to Section 5.4(b) or (c)) set forth below):
<TABLE>
<CAPTION>
------------------------------------- ------------------------------ -----------------------------
                                                                      EUROCURRENCY RATE LOANS/BA
          LEVERAGE RATIO                     BASE RATE LOANS                  RATE LOANS
------------------------------------- ------------------------------ -----------------------------
                                      REVOLVING LOANS  TERM LOANS    REVOLVING LOANS   TERM LOANS
------------------------------------- ---------------- ------------- ----------------- -----------
<S>                                   <C>              <C>           <C>               <C>
Less than or equal to 3.00 to 1           0.375%          0.375%           1.5%           1.5%

Greater than 3.00 to 1 and equal to
or less than 3.50 to 1                     0.50%           0.50%         1.625%         1.625%

Greater than 3.5 to 1 and equal to
or less than 4.00 to 1                     0.95%           0.95           2.25%          2.25%

Greater than 4.00 to 1 and equal to
or less than 4.75 to 1                     1.25%           1.25%          2.50%          2.50%

At all other times                         1.50%           1.50%          2.75%          2.75%
------------------------------------- ---------------- ------------- ----------------- -----------
</TABLE>

Subsequent changes in the Applicable Margin resulting from a change in the
Leverage Ratio shall become effective as to all Loans three Business Days after
delivery by the Borrowers to the Administrative Agent of new Financial
Statements pursuant to Section 5.4(b) for each of the first three Fiscal
Quarters of each Fiscal Year and Section 5.4(c) for each Fiscal Year.
Notwithstanding anything to the contrary set forth in this Agreement (including
the then effective Leverage Ratio), if the Borrowers shall fail to deliver such
financial statements within the time periods specified in Section 5.4(b) or (c),
as applicable, the Applicable Margin from and including the 46th day after the
end of such Fiscal Quarter or the 91st day after the end of such Fiscal Year, as
the case may be, to but not including the date the Borrowers delivers to the
Administrative Agent such financial statements, shall equal the highest
Applicable Margin set forth above.

                  "Applicable Unused Commitment Fee Rate" means (a) during the
period commencing on the Effective Date and ending on the date which is three
Business Days after the receipt by the Administrative Agent of the Financial
Statements required to be delivered by Section 5.4(b) for the first Fiscal
Quarter ending after the Effective Date, 2.50% per annum and (b) thereafter, as
of any date of determination, a per annum rate equal to the rate set forth below
opposite the then applicable Leverage Ratio (determined for the period ending on
the last day of the most recent Fiscal Quarter or Fiscal Year, as applicable,
for which Financial Statements have been delivered pursuant to Section 5.4(b) or
(c)) set forth below):
<TABLE>
<CAPTION>

-------------------------------------- -----------------------------
           LEVERAGE RATIO                UNUSED COMMITMENT FEE RATE
-------------------------------------- -----------------------------
<S>                                    <C>
Less than or equal to 3.00 to 1                   0.25%
-------------------------------------- -----------------------------
Greater than 3.00 to 1 and equal to
or less than 3.50 to 1                           0.375%
-------------------------------------- -----------------------------
Greater than 3.5 to 1 and equal to
or less than 4.00 to 1                            0.45%
-------------------------------------- -----------------------------
Greater than 4.00 to 1 and equal to
or less than 4.75 to 1                            0.50%
-------------------------------------- -----------------------------
</TABLE>

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<PAGE>   9
<TABLE>
<CAPTION>
-------------------------------------- -----------------------------
           LEVERAGE RATIO                UNUSED COMMITMENT FEE RATE
-------------------------------------- -----------------------------
<S>                                    <C>
At all other times                                0.50%
-------------------------------------- -----------------------------
</TABLE>

Subsequent changes in the Applicable Unused Commitment Fee Rate resulting from a
change in the Leverage Ratio shall become effective three Business Days after
delivery by the Borrowers to the Administrative Agent of new financial
statements pursuant to Section 5.4(b) for each of the first three Fiscal
Quarters of each Fiscal Year and Section 5.4(c) for each Fiscal Year.
Notwithstanding anything to the contrary set forth in this Agreement (including
the then effective Leverage Ratio), if the Borrowers shall fail to deliver such
financial statements with the time periods specified in Section 5.4(b) or (c),
as applicable, the Applicable Unused Commitment Fee from and including the 46th
day after the end of such Fiscal Quarter or the 91st day after the end of such
Fiscal Year, as the case may be, to but not including the date the Borrowers
delivers to the Administrative Agent such financial statements, shall
conclusively equal the highest Applicable Unused Commitment Fee Rate set forth
above.

                  "Approved Fund" means, with respect to any Lender that is a
fund that invests in bank loans, any other fund that invests in bank loans and
is advised or managed by the same investment advisor as such Lender or by an
Affiliate of such investment advisor.

                  "Aries" means Aries Industries Mecanismes et Decoupage Fin, a
societe anonyme organized and existing under the laws of France.

                  "Aries Acquisition" means the purchase by Acquirer of all of
the outstanding capital stock of Aries.

                  "Aries Acquisition Agreement" means the agreement governing
all of the material terms and conditions of the Aries Acquisition to be entered
into by and between Aries and the Acquirer.

                  "Arranger" means Salomon Smith Barney Inc., in its capacity as
sole arranger and book manager for the Facilities.

                  "Asset Sale" means, with respect to any Person, the sale,
lease, license, transfer, assignment or other disposition of all or any portion
of its business, assets, rights, revenues or property, real, personal or mixed,
tangible or intangible, whether in one or a series of transactions, other than
(a) inventory sold in the ordinary course of business upon customary credit
terms, (b) only in the case of a European Restricted Subsidiary, the sale of
accounts receivable in connection with the factoring of accounts receivable in
the ordinary course of such European Subsidiary's business on customary terms
and conditions and otherwise allowed pursuant hereto and (c) sales of scrap or
obsolete material or equipment which are not material in the aggregate.

                  "Assignment and Acceptance" means an assignment and acceptance
entered into by a Lender and an Eligible Assignee, and accepted by the
Administrative Agent, in substantially the form of Exhibit A or such other form
acceptable to the Administrative Agent and the Company.

                  "Assignment and Release Agreement" has the meaning specified
in the recitals to this Agreement.

                  "Assumption Agreement" means an assumption agreement entered
into by a Lender or an Eligible Assignee, and accepted by the Administrative
Agent, in form acceptable to the Administrative Agent.

                  "BA Equivalent Loan" has the meaning specified in Section
2.5(c).

                                       4
<PAGE>   10

                  "BA Interest Period" means, relative to any Bankers'
Acceptance or BA Equivalent Loan, the period beginning on (and including) the
date on which such Bankers' Acceptance is accepted or continued or such BA
Equivalent Loan is made or continued to (but excluding) the date which is 30, 60
or 90 days thereafter, as selected by the applicable Canadian Borrower.

                  "BA Rate" means the rate per annum determined as being the
arithmetic average (rounded upwards, if necessary, to the nearest .01%) of the
rates quoted for one month bankers' acceptances as appear on the Reuters Screen
CDOR (Certificate of Deposit Offered Rate) page, as determined as at 10:00 a.m.
(Toronto time) on the relevant Business Day (for non-Business Days, and if no
CDOR rate is available for a given Business Day, the CDOR rate for the
immediately previous Business Day for which a CDOR rate is available shall be
used).

                  "BA Rate Loan" means any Bankers' Acceptance or BA Equivalent
Loan bearing interest at the BA Rate.

                  "Bankers' Acceptance" means a non-interest bearing bill of
exchange in a form satisfactory to the Administrative Agent, denominated in
Canadian Dollars, drawn and endorsed by a Canadian Borrower and presented to
each Canadian Lender for acceptance pursuant to this Agreement and includes a
depository bill under the Depository Bills and Notes Act (Canada) and a bill of
exchange under the Bills of Exchange Act (Canada).

                  "Bankers' Acceptance Obligations" means the aggregate face or
principal amount of all BA Equivalent Loans, unmatured Bankers' Acceptances and
all Reimbursement Obligations owing in respect of Bankers' Acceptances. For
purposes of determining the amount of Bankers' Acceptance Obligations (or any
component thereof) in respect of any such Obligation that is denominated in an
Alternate Currency, such amount shall equal the Dollar Equivalent of the amount
of such Alternate Currency at the time of determination thereof.

                  "Base Rate" means, (a) with respect to all Loans denominated
in Dollars, for any period, a fluctuating interest rate per annum as shall be in
effect from time to time, which rate per annum shall be equal at all times to
the highest of:

                    (i) the rate of interest announced publicly by Citibank in
          New York, New York, from time to time, as Citibank's base rate;

                    (ii) the sum (adjusted to the nearest 0.25% or, if there is
          no nearest 0.25%, to the next higher 0.25%) of (A) 0.5% per annum plus
          (B) the rate per annum obtained by dividing (I) the latest three-week
          moving average of secondary market morning offering rates in the
          United States for three-month certificates of deposit of major United
          States money market banks, such three-week moving average being
          determined weekly on each Monday (or, if any such day is not a
          Business Day, on the next succeeding Business Day) for the three-week
          period ending on the previous Friday by Citibank on the basis of such
          rates reported by certificate of deposit dealers to and published by
          the Federal Reserve Bank of New York or, if such publication shall be
          suspended or terminated, on the basis of quotations for such rates
          received by Citibank from three New York certificate of deposit
          dealers of recognized standing selected by Citibank, by (II) a
          percentage equal to 100% minus the average of the daily percentages
          specified during such three-week period by the Federal Reserve Board
          for determining the maximum reserve requirement (including any
          emergency, supplemental or other marginal reserve requirement) for
          Citibank in respect of liabilities consisting of or including (among
          other liabilities) three-month U.S. dollar nonpersonal time deposits
          in the United States, plus (C) the average during such three-week
          period of the maximum annual assessment rates estimated by Citibank
          for determining the then current annual assessment payable by Citibank
          to the Federal Deposit Insurance Corporation (or any successor) for
          insuring Dollar deposits in the United States; and

                                       5
<PAGE>   11

                    (iii) the sum of (A) 0.5% per annum plus (B) the Federal
          Funds Rate; and

                (b) with respect to all Canadian Loans, the higher of:

                    (i)  the rate determined by the Administrative Agent as the
          rate displayed at or about 10:30 a.m. (Toronto time) on display page
          CAPRIME of the Reuters Screen as the prime rate for Canadian Dollar
          loans by Canadian banks to borrowers in Canada; provided, however,
          that, if for any reason there is no such rate displayed on the Reuters
          Screen on such day or if the basis of calculation of such rate is
          changed after the date hereof and in the reasonable judgment of the
          Administrative Agent it ceases to reflect each Canadian Lender's cost
          of funding to the same extent as the date hereof, then such rate shall
          be the per annum floating rate of interest (commercially known as the
          "prime rate") established from time to time by three Canadian banks
          selected by the Administrative Agent as the prime rate they will use
          to determine the rates of interest on Canadian Dollar loans; and

                    (ii) the sum of (A) BA Rate plus (B) 0.75% per annum.

                  "Base Rate Loan" means any Loan during any period in which it
bears interest based on the Base - Rate.

                  "Borrowers" has the meaning specified in the preamble to this
Agreement.

                  "Borrowing" means a borrowing consisting of Loans made on the
same day to the same Borrower by the Lenders in the same currency ratably
according to their respective Commitments. A Borrowing may be a Revolving Credit
Borrowing or a Term Loan Borrowing.

                  "Borrowing Subsidiaries" has the meaning specified in the
preamble to this Agreement.

                  "Business Day" means (a) for all purposes other than as
covered by clauses (b) and (c) below, a day other than a Saturday, Sunday or
other day on which commercial banks in New York, New York, are authorized or
required by law to close, and, if the applicable Business Day relates to a
Canadian Revolving Credit Outstanding, a day other than a Saturday, Sunday or
other day on which commercial banks in Toronto, Canada, are authorized or
required by law to close, (b) with respect to all notices (except with respect
to general matters not relating directly to funding) and determinations in
connection with, and payments of principal and interest on, Eurocurrency Loans,
any day which is a Business Day described in clause (a) above and which is also
a day for trading by and between banks in deposits of the Applicable Currency
for such Loans in the interbank eurocurrency market and (c) with respect to any
Loan denominated in Euros, any such day which is (i) as to payments or purchases
of Euros, a TARGET Business Day and (ii) for all other purposes, including the
giving and receiving of notices, a TARGET Business Day on which banks are
generally open for business in London, England, Frankfurt, Germany and in any
other principal financial center as the Administrative Agent may from time to
time determine for this purpose. For purposes of this Agreement, a "TARGET
Business Day" is a day when the Trans-European Automated Real-time Gross
Settlement Express Transfer System, or any successor thereto, is scheduled to be
open for business.

                  "Canadian Borrowers" means any Borrower that is a Canadian
Subsidiary.

                  "Canadian Collateral Documents" means the amended and restated
Pledge Agreements (as defined in the Existing Credit Agreement), any pledge
agreement executed by a Canadian Borrower pursuant to which the Stock of a
Canadian Subsidiary is pledged in favor of the Collateral Agent, the amended and
restated Guarantor Security Agreements (as defined in the Existing Credit
Agreement), and the Canadian Subsidiary Security Acknowledgement, Confirmation
and Amendment Agreements, each as executed and delivered by a Guarantor that is
a Canadian Borrower or a Canadian Subsidiary.

                                       6
<PAGE>   12

                  "Canadian Dollar" and "CAD" each mean the lawful currency of
Canada.

                  "Canadian Lending Office" means, with respect to any Canadian
Lender, the office of such Lender specified as its "Canadian Lending Office"
opposite its name on Schedule II or on the Assignment and Acceptance by which it
became a Canadian Lender or such other office of such Lender as such Lender may
from time to time specify to the Borrowers and the Administrative Agent.

                  "Canadian Lender" means any Lender which, whether directly or
through an Affiliate of such Lender, can make Canadian Loans or extend other
Canadian Revolving Credit Outstandings hereunder free of withholding taxes of
Canada and that is designated from time to time by the Administrative Agent and
the Company, with the consent of such Lender, as a Canadian Lender.

                  "Canadian Loan" means any Loan denominated in Canadian Dollars
to a Canadian Borrower.

                  "Canadian Ratable Portion" means, in respect of Canadian
Revolving Credit Outstandings and any Canadian Lender, the percentage obtained
by dividing (a) such Canadian Lender's Revolving Credit Commitment at such time
by (b) the aggregate amount of all Revolving Credit Commitments of the Canadian
Lenders at such time.

                  "Canadian Revolving Credit Outstandings" means the Revolving
Credit Outstandings owing by the Canadian Borrowers to the Canadian Lenders.

                  "Canadian Subsidiary" means any Subsidiary of the Company
organized under the laws of Canada or any Province thereof.

                  "Canadian Subsidiary Release Date" shall mean the date on
which each of the following conditions is satisfied, as determined by the
Administrative Agent: (a) no Default or Event of Default has occurred and is
continuing; (b) the holders of the Senior Subordinated Notes shall have agreed
to release on such date all Guaranty Obligations of any of the Canadian
Subsidiaries in respect of the Senior Subordinated Debt Documents; (c) there
shall not exist any other Guaranty Obligations of any Canadian Subsidiary with
respect to any obligation or liability of the Company or any Domestic
Subsidiary, other than the Secured Obligations; (d) and the documentation
providing for the terms and conditions of each of the agreements described in
the foregoing clauses (b) and (c) shall be reasonably satisfactory to, and
delivered to, the Administrative Agent and (e) such date is on or prior to
February 1, 2001.

                  "Canadian Subsidiary Security Acknowledgement, Confirmation
and Amendment Agreement" means any security acknowledgement, confirmation and
amendment agreement in form and substance acceptable to the Administrative
Agent, dated as of the Effective Date and executed and delivered by a Canadian
Subsidiary.

                  "Capital Expenditures" means, with respect to any Person for
any period, the aggregate of amounts that would be reflected as a capital asset
on a consolidated balance sheet of such Person and its Subsidiaries prepared in
conformity with GAAP, excluding interest capitalized during construction.

                  "Capital Lease" means, with respect to any Person, any lease
of property by such Person as lessee which would be accounted for as a capital
lease on a balance sheet of such Person prepared in conformity with GAAP.

                  "Capital Lease Obligations" means, with respect to any Person,
the capitalized amount of all obligations of such Person or any of its
Subsidiaries under Capital Leases, as determined on a consolidated basis in
conformity with GAAP.

                                       7
<PAGE>   13

                  "Cash Collateral Account" has the meaning specified in the
Pledge and Security Agreement.

                  "Cash Equivalents" means (a) securities issued or fully
guaranteed or insured by the United States government or any agency thereof, (b)
certificates of deposit, eurodollar time deposits, overnight bank deposits and
bankers' acceptances of any Lender or any commercial bank organized under the
laws of the United States, any state thereof, the District of Columbia, any
foreign bank, or its branches or agencies (fully protected against currency
fluctuations) which, at the time of acquisition, are rated at least "A-1" by
Standard & Poor's Rating Services ("S&P") or "P-1" by Moody's Investors
Services, Inc. ("Moody's"), (c) commercial paper of an issuer rated at least
"A-1" by S&P or "P-1" by Moody's, and (d) shares of any money market fund that
(i) has at least 95% of its assets invested continuously in the types of
investments referred to in clauses (a) through (c) above, (ii) has net assets of
not less than $500,000,000 and (iii) is rated at least "A-1" by S&P or "P-1" by
Moody's; provided, however, that the maturities of all obligations of the type
specified in clauses (a) through (c) above shall not exceed 180 days.

                  "Change of Control" means:

                  (a) prior to a primary sale or sales of shares of Stock of the
         Company resulting in the sale of more than 50% of each class of
         outstanding Stock of the Company pursuant to any one or more public
         offerings thereof (a "Majority IPO"), (i) Permitted Holders shall cease
         to control, directly or indirectly, in each case free and clear of all
         Liens, at least 35% (on a fully diluted basis) of the issued and
         outstanding shares of Voting Stock of the Company and have the right
         and authority to appoint, designate or otherwise elect at least 51% of
         the members of the Board of Directors of the Company or (ii) other than
         the Permitted Holders, any Person, or two or more Persons acting in
         concert, acquire or own beneficial ownership (within the meaning of
         Rule 13d-3 of the Securities and Exchange Commission under the
         Securities Exchange Act of 1934) of an amount of the outstanding shares
         of Voting Stock of the Company on a fully diluted basis which is equal
         to or greater than the amount owned by the Permitted Holders;

                  (b) after a Majority IPO, (i) Permitted Holders shall cease to
         control, directly or indirectly, in each case free and clear of all
         Liens, at least 20% (on a fully diluted basis) of the issued and
         outstanding shares of Voting Stock of the Company and have the right
         and authority to appoint, designate or otherwise elect at least 20% of
         the members of the Board of Directors of the Company or (ii) any
         Person, or two or more Persons acting in concert, acquire or own
         beneficial ownership (within the meaning of Rule 13d-3 of the
         Securities and Exchange Commission under the Securities Exchange Act of
         1934) of an amount of the outstanding shares of Voting Stock of the
         Company on a fully diluted basis which is equal to or greater than the
         amount owned by the Permitted Holders; or

                  (c) after the first public offering of Stock of the Company,
         during any period of two consecutive years, individuals who at the
         beginning of such period constituted the Board of Directors of the
         Company (together with any new directors whose election by such Board
         of Directors or whose nomination for election by the shareholders of
         the Company was approved by a majority vote of the directors of the
         Company then still in office who were either directors at the beginning
         of such period or whose election or nomination for election was
         previously so approved) cease for any reason to constitute a majority
         of the Board of Directors then in office; or

                  (d) any "Change of Control" as defined in the Senior
         Subordinated Note Indentures.

                  "Citibank" means Citibank, N.A., a national banking
association.

                  "Citibank Canada" means Citibank Canada, a Canadian chartered
bank.

                                       8
<PAGE>   14

                  "Citicorp" has the meaning specified in the preamble.

                  "Code" means the Internal Revenue Code of 1986 (or any
successor legislation thereto), as amended from time to time.

                  "Cofimeta" means Cofimeta, S.A., a societe anonyme organized
and existing under the laws of France.

                  "Collateral" means all property and interests in property and
proceeds thereof now owned or hereafter acquired by any Loan Party in or upon
which a Lien is granted under any of the Collateral Documents.

                  "Collateral Agent" has the meaning specified in the preamble
to this Agreement.

                  "Collateral Documents" means each Pledge and Security
Agreement, the Foreign Collateral Documents, the Mortgage Documents and any
other document executed and delivered by a Loan Party granting a Lien on any of
its property to secure payment of the Secured Obligations.

                  "Commitment" means, with respect to any Lender, such Lender's
Revolving Credit Commitment, if any, and Term Loan Commitment, if any, and
"Commitments" means the aggregate Revolving Credit Commitments and Term Loan
Commitments of all Lenders.

                  "Consent and Agreement to the Mexican Intercreditor Agreement"
means, the Consent and Agreement to the Mexican Intercreditor Agreement, dated
as of the Effective Date and executed and delivered by each of the Borrowers.

                  "Consolidated Current Assets" means, with respect to any
Person at any date, the total consolidated current assets (other than cash and
Cash Equivalents) of such Person and its Subsidiaries at such date, determined
in conformity with GAAP.

                  "Consolidated Current Liabilities" means, with respect to any
Person at any date, all liabilities of such Person and its Subsidiaries at such
date which should, in accordance with GAAP, be classified as current liabilities
on a consolidated balance sheet of such Person and its Subsidiaries prepared in
conformity with GAAP, but excluding, in the case of the Borrowers the sum of (a)
the principal amount of any current portion of long-term Total Debt and (b)
(without duplication of clause (a) above) the then outstanding principal amount
of the Loans.

                  "Consolidated Net Income" means, for any period, the net
income of the Company and its consolidated Subsidiaries; provided, however, that
there shall not be included in such Consolidated Net Income: (i) any net income
(or loss) of any Person if such Person is not a Restricted Subsidiary, except
that subject to the exclusion contained in clause (iv) below, the Company's
equity in the net income of any such Person for such period shall be included in
such Consolidated Net Income up to the aggregate amount of cash actually
distributed by such Person during such period to the Company or a Restricted
Subsidiary as a dividend or other distribution (subject, in the case of a
dividend or other distribution paid to a Restricted Subsidiary, to the
limitations contained in clause (ii) below); (ii) any net income of any
Restricted Subsidiary if such Restricted Subsidiary is subject to restrictions,
directly or indirectly, on the payment of dividends or the making of
distributions by such Restricted Subsidiary, directly or indirectly, to the
Company, except that (A) subject to the exclusion contained in clause (iii)
below, the Company's equity in the net income of any such Restricted Subsidiary
for such period shall be included in such Consolidated Net Income up to the
aggregate amount of cash that could have been distributed by such Restricted
Subsidiary consistent with such restriction during such period to the Company or
another Restricted Subsidiary as a dividend or other distribution (subject, in
the case of a dividend or other distribution paid to another Restricted
Subsidiary, to the limitation contained in this clause) and (B) the Company's
equity in a net loss of any such Restricted Subsidiary for such period shall be
included in

                                       9
<PAGE>   15

determining such Consolidated Net Income; (iii) any gain (or loss) realized upon
the sale or other disposition of any assets of the Company or its consolidated
Subsidiaries (including pursuant to any sale-and-leaseback arrangement) which is
not sold or otherwise disposed of in the ordinary course of business and any
gain (or loss) realized upon the sale or other disposition of any Stock of any
Person; (iv) extraordinary or nonrecurring gains or non-cash losses; and (v) the
cumulative effect of a change in accounting principles.

                  "Constituent Documents" means, with respect to any Person, (a)
the articles/certificate of incorporation (or the equivalent organizational
documents) of such Person, (b) the by-laws (or the equivalent governing
documents) of such Person and (c) any document setting forth the manner of
election and duties of the directors or managing members of such Person (if any)
and the designation, amount and/or relative rights, limitations and preferences
of any class or series of such Person's Stock.

                  "Contaminant" means any material, substance or waste that is
classified, regulated or otherwise characterized under any Environmental Law as
hazardous, toxic, a contaminant or a pollutant or by other words of similar
meaning or regulatory effect, including any petroleum or petroleum-derived
substance or waste, asbestos and polychlorinated biphenyls.

                  "Contractual Obligation" of any Person means any obligation,
agreement, undertaking or similar provision of any Security issued by such
Person or of any agreement, undertaking, contract, lease, indenture, mortgage,
deed of trust or other instrument (excluding a Loan Document) to which such
Person is a party or by which it or any of its property is bound or to which any
of its properties is subject.

                  "Currency" means Dollars or any Alternate Currency.

                  "Customary Permitted Liens" means, with respect to any Person,
any of the following Liens:

                  (a) Liens with respect to the payment of taxes, assessments or
         governmental charges in all cases which are not yet due or which are
         being contested in good faith by appropriate proceedings and with
         respect to which adequate reserves or other appropriate provisions are
         being maintained to the extent required by GAAP;

                  (b) Liens of landlords arising by statute and liens of
         suppliers, mechanics, carriers, materialmen, warehousemen or workmen
         and other liens imposed by law created in the ordinary course of
         business for amounts not yet due or which are being contested in good
         faith by appropriate proceedings and with respect to which adequate
         reserves or other appropriate provisions are being maintained to the
         extent required by GAAP;

                  (c) deposits made in the ordinary course of business in
         connection with worker's compensation, unemployment insurance or other
         types of social security benefits or to secure the performance of bids,
         tenders, sales, contracts (other than for the repayment of borrowed
         money) and surety, appeal, customs or performance bonds;

                  (d) encumbrances arising by reason of zoning restrictions,
         easements, licenses, reservations, covenants, rights-of-way, utility
         easements, building restrictions and other similar encumbrances on the
         use of real property which do not materially detract from the value of
         such real property or interfere with the ordinary conduct of the
         business conducted and proposed to be conducted at such real property;

                  (e) encumbrances arising under leases or subleases of real
         property which do not in the aggregate materially detract from the
         value of such real property or interfere with the ordinary conduct of
         the business conducted and proposed to be conducted at such real
         property; and

                                       10
<PAGE>   16

                  (f) financing statements of a lessor's rights in and to
         personal property leased to such Person in the ordinary course of such
         Person's business.

                  "Danish Holding Company" means Oxford Automotive Europe, ApS a
Subsidiary of the Company and wholly owned directly by a Guarantor, which
Subsidiary is organized under the laws of Denmark and formed to, among other
purposes, own 100% of the Stock, free and clear of any Liens other than Liens in
favor of the Administrative Agent, of the French Holding Company.

                  "Debt Issuance" means the incurrence of Indebtedness of the
type specified in clause (a) and (b) of the definition of "Indebtedness" by the
Company or any of its Restricted Subsidiaries.

                  "Default" means any event, act or condition which with the
passing of time or the giving of notice or both would become an Event of
Default.

                  "Discount Rate" means with respect to each Bankers' Acceptance
issued pursuant to this Agreement with the same maturity date, the rate
determined by Citibank Canada as being the discount rate, calculated on the
basis of a year of 365 or 366 days, as the case may be, of Citibank Canada
established in accordance with its normal practices at or about 10:00 a.m.
Toronto time on the date of issue of such Bankers' Acceptances, for bankers'
acceptances having a comparable face value and an identical maturity date to the
face value and maturity date of the such Bankers' Acceptance.

                  "Discounted Proceeds" means in respect of any Bankers'
Acceptance to be accepted and purchased by a Canadian Lender hereunder on any
day, an amount (rounded to the nearest whole Canadian cent, and with one-half of
one cent being rounded up) calculated on such day by multiplying (i) the face
amount of such Bankers' Acceptance by (ii) the price, where the price is
determined by dividing one by the sum of one plus the product of (A) the
Discount Rate (expressed as a decimal) and (B) a fraction, the numerator of
which is the number of days in the term of such Bankers' Acceptance and the
denominator of which is 365 or 366, as the case may be, with such product being
rounded up or down to the fifth decimal place and .000005 being rounded up.

                  "Disqualified Stock" means with respect to any Person, any
Stock which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or is exchangeable for Indebtedness of such Person, or
is redeemable at the option of the holder thereof, in whole or in part, on or
prior to one year after the later of the Scheduled Termination Date and the Term
Loan Maturity Date.

                  "Documentation Agent" has the meaning specified in the
preamble to this Agreement.

                  "Dollar Equivalent" means with respect to any Alternate
Currency at the time of determination thereof, the equivalent of such currency
in Dollars determined by using the rate of exchange quoted by Citibank in New
York, New York at 11:00 a.m. (New York time) on the date of determination to
prime banks in New York for the spot purchase in the New York foreign exchange
market of such amount of Dollars with such Alternate Currency.

                  "Dollars" and the sign "$" each mean the lawful money of the
United States of America.

                  "Domestic Lending Office" means, with respect to any Lender,
the office of such Lender specified as its "Domestic Lending Office" opposite
its name on Schedule II or on the Assignment and Acceptance by which it became a
Lender or such other office of such Lender as such Lender may from time to time
specify to the Borrowers and the Administrative Agent.

                  "Domestic Subsidiary" means any Subsidiary of the Borrowers
organized under the laws of any state of the United States of America or the
District of Columbia.

                                       11
<PAGE>   17

                  "EBITDA" shall mean, for any period, the Consolidated Net
Income for such period plus, without duplication, all amounts deducted in
determining such Consolidated Net Income on account of (a) Interest Expense, (b)
income tax expense (including Michigan Single Business Tax expense), (c)
depreciation and amortization expense, and (d) all other non-cash items reducing
Consolidated Net Income (other than items that will require cash payments and
for which an accrual or reserve is, or is required under GAAP to be, made,
except as otherwise consented to by the Administrative Agent), and minus all non
cash items increasing Consolidated Net Income, in each case for such period, all
as determined for the Company and its Subsidiaries on a consolidated basis in
accordance with GAAP.

                  "Effective Date" means the first date on which all of the
conditions precedent set forth in Article III are satisfied.

                  "Eligible Assignee" means (a) with respect to an assignment by
any Non-Canadian Lender, (i) a Lender or any Affiliate or Approved Fund of such
Lender; (ii) a commercial bank having total assets in excess of $5,000,000,000;
(iii) a finance company, insurance company, other financial institution or fund
reasonably acceptable to the Administrative Agent, which is regularly engaged in
making, purchasing or investing in loans including, with respect to any proposed
assignment of all or a portion of a Lender's Revolving Credit Commitment,
revolving loans, and having a net worth, determined in accordance with GAAP, in
excess of $250,000,000 or, to the extent net worth is less than such amount, a
finance company, insurance company, other financial institution or fund,
reasonably acceptable to the Administrative Agent and the Borrowers; or (iv) a
savings and loan association or savings bank organized under the laws of the
United States or any State thereof which has a net worth, determined in
accordance with GAAP, in excess of $250,000,000 and (b) with respect to an
assignment by any Canadian Lender, a Canadian Lender which is also an entity
described in the foregoing clause (a).

                  "Environmental Laws" means all applicable Requirements of Law
now or hereafter in effect, as amended or supplemented from time to time,
relating to pollution or the regulation and protection of human health, safety,
the environment or natural resources, including the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. ss.
9601 et seq.); the Hazardous Material Transportation Act, as amended (49 U.S.C.
ss. 180 et seq.); the Federal Insecticide, Fungicide, and Rodenticide Act, as
amended (7 U.S.C. ss. 136 et seq.); the Resource Conservation and Recovery Act,
as amended (42 U.S.C. ss. 6901 et seq.); the Toxic Substance Control Act, as
amended (42 U.S.C. ss. 7401 et seq.); the Clean Air Act, as amended (42 U.S.C.
ss. 740 et seq.); the Federal Water Pollution Control Act, as amended (33 U.S.C.
ss. 1251 et seq.); the Occupational Safety and Health Act, as amended (29 U.S.C.
ss. 651 et seq.); the Safe Drinking Water Act, as amended (42 U.S.C. ss. 300f et
seq.); and their state and local counterparts or equivalents and any transfer of
ownership notification or approval statute, including the Industrial Site
Recovery Act (N.J. Stat. Ann. ss. 13:1K-6 et seq.).

                  "Environmental Liabilities and Costs" means, with respect to
any Person, all liabilities, obligations, responsibilities, Remedial Actions,
losses, damages, punitive damages, consequential damages, treble damages, costs
and expenses (including all fees, disbursements and expenses of counsel, experts
and consultants and costs of investigation and feasibility studies), fines,
penalties, sanctions and interest incurred as a result of any claim or demand by
any other Person, whether based in contract, tort, implied or express warranty,
strict liability, criminal or civil statute, including any thereof arising under
any Environmental Law, Permit, order or agreement with any Governmental
Authority or other Person, which relate to any environmental, health or safety
condition or a Release or threatened Release, and result from the past, present
or future operations of, or ownership of property by, such Person or any of its
Subsidiaries.

                  "Environmental Lien" means any Lien in favor of any
Governmental Authority for Environmental Liabilities and Costs.

                                       12
<PAGE>   18

                  "ERISA" means the Employee Retirement Income Security Act of
1974 (or any successor legislation thereto), as amended from time to time.

                  "ERISA Affiliate" means any trade or business (whether or not
incorporated) under common control or treated as a single employer with the
Company or any of its Subsidiaries within the meaning of Section 414 (b), (c),
(m) or (o) of the Code.

                  "Euro" means the single currency of the European Union.

                  "Eurocurrency Liabilities" has the meaning assigned to that
term in Regulation D of the Federal Reserve Board, as in effect from time to
time.

                  "Eurocurrency Base Rate" means, for any Interest Period for
each Eurocurrency Rate Loan in any Currency comprising part of the same
Borrowing, the rate per annum (rounded upwards, if necessary, to the nearest
1/100 of one percent) appearing on the Screen for such Currency as the London
Interbank Offered Rate for deposits in such Currency at approximately 11:00 a.m.
London time (or as soon thereafter as practicable) two Business Days prior to
the first day of the Interest Period for such Loan; provided, however, that if
such rate does not appear on such Screen (or, if such Screen shall cease to be
publicly available or if the information contained on such Screen, in the
Administrative Agent's reasonable judgment, shall cease accurately to reflect
such London Interbank Offered Rate, as reported by any publicly available source
of similar market data selected by the Administrative Agent that, in the
Administrative Agent's reasonable judgment, accurately reflects such London
Interbank Offered Rate), the "Eurocurrency Rate" for such Interest Period for
such Eurocurrency Rate Loan in such Currency shall be (a) the rates per annum at
which deposits in such Currency are offered by the Administrative Agent to prime
banks in the London interbank market at approximately 11:00 a.m. (London time)
two Business Days before the first day of the Interest Period for such Loan in
an amount substantially equal to the Eurocurrency Rate Loan comprising part of
such Borrowing to be outstanding during such Interest Period; provided, further,
that in the case of each Lender that is subject to the jurisdiction of the
Financial Services Authority of England (or any successor) the "FSA"), the
Eurocurrency Rate shall be increased for each Interest Period by the associated
cost rate (if any) applicable to Loans denominated for such Interest Period in
the lawful currency of England or a foreign currency pursuant to applicable
regulations of the FSA. The Eurocurrency Rate for any Interest Period for each
Eurocurrency Rate Loan comprising part of the same Borrowing shall be determined
by the Administrative Agent on the basis of the applicable Screen or the
applicable rates offered by the Administrative Agent, as the case may be, two
Business Days before the first day of such Interest Period.

                  "Eurocurrency Lending Office" means, with respect to any
Lender, the office of such Lender specified as its "Eurocurrency Lending Office"
opposite its name on Schedule II or on the Assignment and Acceptance by which it
became a Lender (or, if no such office is specified, its Domestic Lending
Office) or such other office of such Lender as such Lender may from time to time
specify to the Borrowers and the Administrative Agent.

                  "Eurocurrency Rate" means, with respect to any Interest Period
for any Eurocurrency Rate Loan, an interest rate per annum equal to the rate per
annum obtained by dividing (a) the Eurocurrency Base Rate by (b) a percentage
equal to 100% minus the reserve percentage applicable two Business Days before
the first day of such Interest Period under regulations issued from time to time
by the Federal Reserve Board for determining the maximum reserve requirement
(including any emergency, supplemental or other marginal reserve requirement)
for a member bank of the Federal Reserve System in New York City with respect to
liabilities or assets consisting of or including Eurocurrency Liabilities (or
with respect to any other category of liabilities which includes deposits by
reference to which the Eurocurrency Rate is determined) having a term equal to
such Interest Period.

                  "Eurocurrency Rate Loan" means any Loan that, for an Interest
Period, bears interest based on the Eurocurrency Rate.

                                       13
<PAGE>   19

                  "European Restricted Subsidiary" means any Restricted
Subsidiary of the Company organized under the laws of a country (or any province
thereof) which is a member state of the European Union.

                  "Event of Default" has the meaning specified in Section 7.1.

                  "Excess Cash Flow" means, for the Company and its Restricted
Subsidiaries for any period, EBITDA of the Company and its Restricted
Subsidiaries for such period plus (a) the excess, if any, of the Working Capital
of the Company and its Restricted Subsidiaries at the beginning of such period
over the Working Capital of the Borrowers at the end of such period minus (b)
the sum of (without duplication) (i) scheduled and mandatory cash principal
payments on the Revolving Credit Outstandings and Term Loans during such period
and optional cash principal payments on the Loans during such period (but, in
the case of Revolving Credit Outstandings, only to the extent that the Revolving
Credit Commitments are permanently reduced by the amount of such payments), (ii)
scheduled cash principal payments made by the Company or any of its Restricted
Subsidiaries during such period on other Indebtedness to the extent such other
Indebtedness and payments are permitted by this Agreement, (iii) scheduled
payments made by the Company or any of its Restricted Subsidiaries on Capital
Lease Obligations to the extent such Capital Lease Obligations and payments are
permitted by this Agreement, (iv) Capital Expenditures made by the Company or
any of its Subsidiaries during such period to the extent permitted by this
Agreement, (v) payments made in respect of Investments permitted pursuant to
Section 6.9(b),(c) or (d), and (vi) the excess, if any, of the Working Capital
of the Company and its Restricted Subsidiaries at the end of such period over
the Working Capital of the Company and its Restricted Subsidiaries at the
beginning of such period.

                  "Existing Agent" has the meaning specified in the recitals to
this Agreement.

                  "Existing Canadian Agent" has the meaning specified in the
recitals to this Agreement.

                  "Existing Credit Agreement" has the meaning specified in the
recitals to this Agreement.

                  "Existing Lenders" has the meaning specified in the recitals
to this Agreement.

                  "Existing Revolving Credit Loans" means the Revolving Credit
Advances (as defined in the Existing Credit Agreement) owing to the Existing
Lenders on the Effective Date.

                  "Facilities" means (a) the Term Loan Facility and (b) the
Revolving Credit Facility.

                  "Facilities Increase" has the meaning specified in Section
2.20.

                  "Facilities Increase Effective Date" has the meaning specified
in Section 2.20.

                  "Fair Market Value" means (a) with respect to any asset or
group of assets (other than a marketable Security) at any date, the value of the
consideration obtainable in a sale of such asset at such date assuming a sale by
a willing seller to a willing purchaser dealing at arm's length and arranged in
an orderly manner over a reasonable period of time having regard to the nature
and characteristics of such asset, as reasonably determined by the Board of
Directors of the Company, or, if such asset shall have been the subject of a
relatively contemporaneous appraisal by an independent third party appraiser,
the basic assumptions underlying which have not materially changed since its
date, the value set forth in such appraisal, and (b) with respect to any
marketable Security at any date, the closing sale price of such Security on the
Business Day next preceding such date, as appearing in any published list of any
national securities exchange or the Nasdaq Stock Market or, if there is no such
closing sale price of such Security, the final price for the purchase of such
Security at face value quoted on such business day by a financial institution of
recognized standing which regularly deals in securities of such type selected by
the Administrative Agent.

                                       14
<PAGE>   20

                  "FCC" has the meaning specified in Section 6.9(e)(ii).

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

                  "Federal Reserve Board" means the Board of Governors of the
Federal Reserve System, or any successor thereto.

                  "Fee Letter" means the letter dated as of June 9, 2000
addressed to the Company from Citicorp and the Arranger and accepted by the
Company on June 9, 2000 with respect to certain fees to be paid from time to
time to Citicorp and the Arranger.

                  "Financial Statements" means the financial statements of the
Borrowers and its Subsidiaries delivered in accordance with Sections 4.6 and
5.4.

                  "Fiscal Quarter" means each of the three month periods ending
on March 31, June 30, September 30 and December 31.

                  "Fiscal Year" means the twelve month period ending on March
31.

                  "Foreign Collateral Documents" means (i) each pledge agreement
pursuant to which all or a portion of the Stock of a Foreign Subsidiary is being
pledged by a Loan Party to the Collateral Agent for the benefit of the Secured
Parties as security for the Obligations, executed by such Loan Party and the
Collateral Agent and (ii) the Canadian Collateral Documents.

                  "Foreign Subsidiary" means any Subsidiary incorporated or
formed in any jurisdiction other than any State of the United States of America.

                  "French Holding Company" means Oxford Automotive France, SAS,
a societe par actions simplifiee organized and existing under the laws of
France.

                  "GAAP" means GAAP in the United States of America as in effect
from time to time set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and
the statements and pronouncements of the Financial Accounting Standards Board,
or in such other statements by such other entity as may be in general use by
significant segments of the accounting profession, which are applicable to the
circumstances as of the date of determination.

                  "Governmental Authority" means any nation or government, any
state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or
pertaining to government.

                  "Granting Bank" has the meaning specified in Section 9.2(e).

                  "Guarantor" means each Borrower (in its capacity as such) and
each Subsidiary Guarantor.

                  "Guaranty" means the guaranty, in substantially the form of
Exhibit G, executed by the Company and each Subsidiary Guarantor.

                                       15
<PAGE>   21
         "Guaranty Obligation" means, as applied to any Person, any direct or
indirect liability, contingent or otherwise, of such Person with respect to any
Indebtedness of another Person, if the purpose or intent of such Person in
incurring the Guaranty Obligation is to provide assurance to the obligee of such
Indebtedness that such Indebtedness will be paid or discharged, or that any
agreement relating thereto will be complied with, or that any holder of such
Indebtedness will be protected (in whole or in part) against loss in respect
thereof including, (a) the direct or indirect guaranty, endorsement (other than
for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of Indebtedness
of another Person and (b) any liability of such Person for Indebtedness of
another Person through any agreement (contingent or otherwise) (i) to purchase,
repurchase or otherwise acquire such Indebtedness or any security therefor, or
to provide funds for the payment or discharge of such Indebtedness (whether in
the form of a loan, advance, stock purchase, capital contribution or otherwise),
(ii) to maintain the solvency or any balance sheet item, level of income or
financial condition of another Person, (iii) to make take-or-pay or similar
payments, if required, regardless of non-performance by any other party or
parties to an agreement, (iv) to purchase, sell or lease (as lessor or lessee)
property, or to purchase or sell services, primarily for the purpose of enabling
the debtor to make payment of such Indebtedness or to assure the holder of such
Indebtedness against loss, or (v) to supply funds to or in any other manner
invest in such other Person (including to pay for property or services
irrespective of whether such property is received or such services are
rendered), if in the case of any agreement described under subclause (i), (ii),
(iii), (iv) or (v) of clause (b) of this sentence the primary purpose or intent
thereof is as described in the preceding sentence. The amount of any Guaranty
Obligation shall be equal to the amount of the Indebtedness so guaranteed or
otherwise supported.

         "Hazardous Materials" means any material, substance or waste that is
classified, regulated or otherwise characterized under any Environmental Law as
hazardous, toxic, a contaminant or a pollutant or by other words of similar
meaning or regulatory effect, including any petroleum or petroleum-derived
substance or waste, asbestos and polychlorinated biphenyls.

         "Hedging Contracts" means all Interest Rate Contracts, foreign exchange
contracts, currency swap or option agreements, forward contracts, commodity
swap, purchase or option agreements, other commodity price hedging arrangements,
and all other similar agreements or arrangements designed to alter the risks of
any Person arising from fluctuations in interest rates, currency values or
commodity prices.

         "Indebtedness" of any Person means without duplication (a) all
indebtedness of such Person for borrowed money, (b) all obligations of such
Person evidenced by notes, bonds, debentures or similar instruments or which
bear interest, (c) all reimbursement and all obligations with respect to letters
of credit, bankers' acceptances, surety bonds and performance bonds, whether or
not matured, (d) all indebtedness for the deferred purchase price of property or
services , other than trade payables incurred in the ordinary course of business
which are not overdue, (e) all indebtedness of such Person created or arising
under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of the
seller or lender under such agreement in the event of default are limited to
repossession or sale of such property), (f) all Capital Lease Obligations of
such Person and the present value of future rental payments under all synthetic
leases, (g) all Guaranty Obligations of such Person, (h) all obligations of such
Person to purchase, redeem, retire, defease or otherwise acquire for value any
Stock or Stock Equivalents of such Person, valued, in the case of redeemable
preferred stock, at the greater of its voluntary or involuntary liquidation
preference plus accrued and unpaid dividends, (i) all payments that such Person
would have to make in the event of an early termination on the date Indebtedness
of such Person is being determined in respect of Hedging Contracts of such
Person and (j) all Indebtedness of the type referred to above secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any Lien upon or in property (including accounts
and general intangibles) owned by such Person, even though such Person has not
assumed or become liable for the payment of such Indebtedness.

         "Indemnitees" has the meaning specified in Section 9.4.

                                       16
<PAGE>   22

         "Interbank Rate" means, for any period, (i) in respect of Obligations
denominated in Dollars, the Federal Funds Rate in effect during such period, and
(ii) in respect of Obligations denominated in Alternative Currencies, the
Administrative Agent's cost of funds for such period.

         "Interest Coverage Ratio" means, with respect to any Person for any
period, the ratio of EBITDA of such Person for such period to Interest Expense
of such Person for such period.

         "Interest Expense" shall mean, for any period, the total interest
expense of the Company and its consolidated Restricted Subsidiaries, plus, to
the extent not included in such total interest expense, and to the extent
incurred by the Company or its Restricted Subsidiaries, (i) interest expense
attributable to Capital Lease obligations, (ii) amortization of debt discount,
(iii) capitalized interest, (iv) non-cash interest expense, (v) commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers' acceptance financing, (vi) net costs associated with Hedging Contracts
(including amortization of fees), (vii) Preferred Stock dividends in respect of
all Preferred Stock held by Persons other than the Company or a Restricted
Subsidiary, and (viii) interest actually paid by the Company or any Restricted
Subsidiary on any Indebtedness of any other Person. Notwithstanding the
foregoing, net interest expense attributable to deferred reimbursement tooling
indebtedness, i.e., only that portion of Tooling Indebtedness to be paid by the
purchaser of the related Tooling in the piece price over the term of the related
tooling contract consistent with current practice, shall not be included in
Interest Expense.

         "Interest Period" means, in the case of any Eurocurrency Rate Loan, (a)
initially, the period commencing on the date such Loan is made or on the date of
conversion of a Base Rate Loan to such Eurocurrency Rate Loan and ending one,
two, three or six months thereafter, as selected by the Borrowers in the Notice
of Borrowing or Notice of Conversion or Continuation given to the Administrative
Agent pursuant to Section 2.2 or 2.12, and (b) thereafter, if such Loan is
continued, in whole or in part, as a Eurocurrency Rate Loan pursuant to Section
2.12, a period commencing on the last day of the immediately preceding Interest
Period therefor and ending one, two, three or six months thereafter, as selected
by the Borrowers in the Notice of Conversion or Continuation given to the
Administrative Agent pursuant to Section 2.12; provided, however, that all of
the foregoing provisions relating to Interest Periods in respect of Eurocurrency
Rate Loans are subject to the following:

              (i)       if any Interest Period would otherwise end on a day
    which is not a Business Day, such Interest Period shall be extended to the
    next succeeding Business Day, unless the result of such extension would be
    to extend such Interest Period into another calendar month, in which event
    such Interest Period shall end on the immediately preceding Business Day;

              (ii)      any Interest Period that begins on the last Business Day
    of a calendar month (or on a day for which there is no numerically
    corresponding day in the calendar month at the end of such Interest Period)
    shall end on the last Business Day of a calendar month;

              (iii)     the Borrowers may not select any Interest Period that
    ends after the date of a scheduled principal payment on the Loans as set
    forth in Article II unless, after giving effect to such selection, the
    aggregate unpaid principal amount of the Loans for which Interest Periods
    end after such scheduled principal payment shall be equal to or less than
    the principal amount to which the Loans are required to be reduced after
    such scheduled principal payment is made;

              (iv)      the Borrowers may not select any Interest Period in
    respect of Loans having an aggregate principal amount of less than
    $5,000,000; and

              (v)       there shall be outstanding at any one time no more than
     ten (10) Interest Periods in the aggregate.

         "Interest Rate Contracts" means all interest rate swap agreements,
interest rate cap agreements, interest rate collar agreements and interest rate
insurance.

                                       17
<PAGE>   23

         "Investment" means, with respect to any Person, (a) any purchase or
other acquisition by that Person of (i) any Security issued by, (ii) a
beneficial interest in any Security issued by, or (iii) any other equity
ownership interest in, any other Person, (b) any purchase by that Person of all
or a significant part of the assets of a business conducted by another Person,
and (c) any loan, advance (other than deposits with financial institutions
available for withdrawal on demand, prepaid expenses, accounts receivable and
similar items made or incurred in the ordinary course of business as presently
conducted), or capital contribution by that Person to any other Person,
including all Indebtedness to such Person arising from a sale of property by
such Person other than in the ordinary course of its business.

         "IRS" means the Internal Revenue Service of the United States or any
successor thereto.

         "Issuer" means each Lender or Affiliate of a Lender that (a) is listed
on the signature pages hereof as an "Issuer" or (b) hereafter becomes an Issuer
with the approval of the Administrative Agent and the Borrowers by agreeing
pursuant to an agreement with and in form and substance satisfactory to the
Administrative Agent and the Borrowers to be bound by the terms hereof
applicable to Issuers.

         "Leases" means, with respect to any Person, all of those leasehold
estates in real property of such Person, as lessee, as such may be amended,
supplemented or otherwise modified from time to time.

         "Lender" means each financial institution or other entity that (a) is
listed on the signature pages hereof as a "Lender" or (b) from time to time
becomes a party hereto by execution of an Assignment and Acceptance or an
Assumption Agreement.

         "Letter of Credit" means any letter of credit issued pursuant to
Section 2.4.

         "Letter of Credit Obligations" means, at any time, the aggregate of all
liabilities at such time of the Borrowers to all Issuers with respect to Letters
of Credit, whether or not any such liability is contingent, and includes the sum
of (a) the Reimbursement Obligations owing in respect of Letters of Credit at
such time and (b) the Letter of Credit Undrawn Amounts at such time. For
purposes of determining the amount of Letter of Credit Obligations (or any
component thereof) in respect of any Letter of Credit that is denominated in an
Alternate Currency, such amount shall equal the Dollar Equivalent of the amount
of such Alternate Currency at the time of determination thereof.

         "Letter of Credit Reimbursement Agreement" has the meaning specified in
Section 2.4(e).

         "Letter of Credit Request" has the meaning specified in Section 2.4(c).

         "Letter of Credit Undrawn Amounts" means, at any time, the aggregate
undrawn face amount of all Letters of Credit outstanding at such time.

         "Leverage Ratio" means, with respect to any Person for any period, the
ratio of (a) Total Debt of such Person as of the last day of such period to (b)
EBITDA for such Person for such period.

         "Lien" means any mortgage, deed of trust, pledge, hypothecation,
assignment, charge, deposit arrangement, encumbrance, lien (statutory or other),
security interest or preference, priority or other security agreement or
preferential arrangement of any kind or nature whatsoever intended to assure
payment of any Indebtedness or other obligation, including any conditional sale
or other title retention agreement, the interest of a lessor under a Capital
Lease, any financing lease having substantially the same economic effect as any
of the foregoing, in the case of a Security, any purchase option, call or
similar right with respect to such Security, and the filing of any financing
statement under the Uniform Commercial Code or comparable law of any
jurisdiction naming the owner of the asset to which such Lien relates as debtor.

                                       18
<PAGE>   24

         "Loan" means any loan made by any Lender pursuant to this Agreement
including, any Revolving Loan, Term Loan or Swing Loan.

         "Loan Documents" means, collectively, this Agreement, the Notes (if
any), the Guaranties, the Fee Letter, each Letter of Credit Reimbursement
Agreement, each Hedging Contract to which a Loan Party and a Lender or an
Affiliate of a Lender is a party, each agreement pursuant to which a Lender or
an Affiliate of a Lender provides cash management services to a Loan Party, the
Collateral Documents, the Master Assignment Agreement, the Assignment and
Release Agreement, the Consent and Agreement to the Mexican Intercreditor
Agreement, and each certificate, agreement or document executed by a Loan Party
and delivered to the Administrative Agent, the Collateral Agent or any Lender in
connection with or pursuant to any of the foregoing.

         "Loan Party" means each of the Borrowers, each Subsidiary Guarantor and
each other Subsidiary of the Company that executes and delivers a Guaranty or a
Collateral Document.

         "Lobdell" means Lobdell Emery Corporation, a Michigan corporation.

         "Lobdell Preferred Stock" means all existing preferred stock issued by
Lobdell, including the Series B Preferred Stock and Series A Preferred Stock, in
the aggregate amount of $40,451,000.

         "Lobdell Preferred Stock Documents" means all stock certificates,
agreements and other documents relating to the terms of the Preferred Stock or
otherwise relating to the Preferred Stock.

         "Master Assignment Agreement" has the meaning specified in the recitals
to this Agreement.

         "Material Adverse Change" means a material adverse change in any of (a)
the business, condition (financial or otherwise), operations, performance,
properties or prospects of each Loan Party, individually, or the Company and its
Subsidiaries, taken as a whole, (b) the ability of the Loan Parties to perform
their respective obligations under the Loan Documents or (c) the ability of the
Administrative Agent, Collateral Agent or the Lenders to enforce the Loan
Documents.

         "Material Adverse Effect" means an effect that results in or causes, or
could reasonably be expected to result in or cause, a Material Adverse Change.

         "Material Subsidiary" means any wholly-owned Restricted Subsidiary of
the Company owning at least 5% of Total Assets generating at least 5% of
Consolidated Net Income of the Company and its Subsidiaries on a consolidated
basis.

         "Mexican Facility" means the $75,000,000 Cross-Border Asset Use
Facility of the Mexican Subsidiaries pursuant to the Mexican Facility Documents.

         "Mexican Facility Documents" means the agreements and documents
described on Schedule 4.25.

         "Mexican Facility Guaranty" means the Guaranty dated March 31, 1999
executed by the Company in favor of the Mexican Trust guaranteeing the lease
payments of the Mexican Subsidiaries under the Asset Use Agreement (as defined
on Schedule 4.25).

         "Mexican Facility Obligations" means all present and future obligations
and liabilities of any kind, direct, contingent or otherwise, pursuant to the
Mexican Facility Documents or otherwise under the Mexican Facility.

                                       19
<PAGE>   25

         "Mexican Facility Tranche A Guaranty" means that portion of the Mexican
Facility Guaranty allocable to the Mexican Facility Tranche A Loans.

         "Mexican Facility Tranche A Guaranty Obligations" means all amounts,
obligations, covenants and duties owing by the Company to any Mexican Facility
Tranche A Lender of every type and description, present or future, arising under
the Mexican Facility Tranche A Guaranty, whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising and however
acquired and includes all fees, interest, charges, expenses, fees, attorneys'
fees and disbursements and other sums chargeable to the Company under the
Mexican Facility Tranche A Guaranty.

         "Mexican Facility Tranche A Lenders" means the lenders of the Mexican
Facility Tranche A Loans.

         "Mexican Facility Tranche A Loans" means the Tranche A Loans made or to
be made under, and as defined in, the Mexican Facility Documents in an aggregate
amount not to exceed $63,000,000.

         "Mexican Intercreditor Agreement" means the amended and restated
intercreditor agreement dated as of the Effective Date in form and substance
satisfactory to the Administrative Agent among the Administrative Agent, the
Collateral Agent, the Bank of Montreal and all parties thereto, as amended or
modified from time to time in accordance with the terms thereof.

         "Mexican Manufacturing Facility" means the Ramos Arizpe manufacturing
facility of the Company to be located in Mexico as described by the Company to
the Administrative Agent prior to the Effective Date.

         "Mexican Subsidiaries" means Subsidiaries of the Company described on
Schedule 4.4, which are the only Subsidiaries of the Company located in Mexico
or organized or existing under the laws of Mexico or any political subdivision
thereof as of the Effective Date. The Mexican Subsidiaries shall be deemed
Restricted Subsidiaries.

         "Mexican Trust" means Oxford Automotive Business Trust 1999-A, a
special purpose trust, and lessor under the Mexican Facility.

         "Mexico" means the United Mexican States.

         "Mortgage Documents" means the mortgages, deeds of trust and other real
estate security documents and each amendment thereto or assignment thereof made
or required herein to be made by the Company or any other Loan Party, as may be
amended from time to time.

         "Multicurrency Loan" means a Revolving Loan made in an Alternate
Currency.

         "Multicurrency Sublimit" means, (i) with respect to Canadian Revolving
Credit Outstandings, the maximum aggregate outstanding principal amount of such
Revolving Credit Outstandings, the Dollar Equivalent of which shall not exceed
$50,000,000 and (ii) with respect to Revolving Credit Outstandings denominated
in Euros, the maximum aggregate outstanding principal amount of such Revolving
Credit Outstandings, the Dollar Equivalent of which shall not exceed
$75,000,000.

         "Multiemployer Plan" means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which the Company, any of its Subsidiaries or any ERISA
Affiliate has any obligation or liability, contingent or otherwise.

                                       20
<PAGE>   26
         "Net Cash Proceeds" means proceeds received by the Company or any of
its Restricted Subsidiaries after the Effective Date in cash or Cash Equivalents
from any (a) Asset Sale, net of (i) the reasonable cash costs of sale,
assignment or other disposition, (ii) taxes paid or payable as a result thereof
and (iii) any amount required to be paid or prepaid on Indebtedness (other than
the Obligations) secured by the assets subject to such Asset Sale; provided,
however, that the evidence of each of (i), (ii) and (iii) are provided to the
Administrative Agent in form and substance satisfactory to it; (b) Property Loss
Event; or (c) Debt Issuance permitted under clause (f) of Section 6.2, in each
case net of brokers' and advisors' fees and other costs incurred in connection
with such transaction; provided, however, that in the case of this clause (c)
evidence of such costs is provided to the Administrative Agent in form and
substance satisfactory to it.

         "Non-Canadian Lender" means each Revolving Credit Lender other than a
Canadian Lender.

         "Non-Funding Lender" has the meaning specified in Section 2.2(h).

         "Non-U.S. Lender" means each Lender or Administrative Agent that is not
a United States person as defined in Section 7701(a)(30) of the Code.

         "Note" means any Revolving Credit Note or Term Loan Note.

         "Notice of Borrowing" has the meaning specified in Section 2.2(a).

         "Notice of Conversion or Continuation" has the meaning specified in
Section 2.12.

         "OASP I" means OASP, Inc., a Michigan corporation, and wholly owned
Subsidiary of the Company.

         "OASP II" means OASP II, Inc., a Michigan corporation, and wholly owned
Subsidiary of the Company.

         "Obligations" means the Loans, the Letter of Credit Obligations, the
Bankers' Acceptance Obligations and all other amounts, obligations, covenants
and duties owing by the Borrowers to the Administrative Agent, any Lender, any
Issuer, any Affiliate of any of them or any Indemnitee, of every type and
description (whether by reason of an extension of credit, opening or amendment
of a letter of credit or payment of any draft drawn thereunder, loan, bankers'
acceptance, guaranty, indemnification, foreign exchange or currency swap
transaction, interest rate hedging transaction or otherwise), present or future,
arising under this Agreement, any other Loan Document, any Hedging Contract, any
agreement for cash management services entered into in connection with this
Agreement or any other Loan Document, whether direct or indirect (including
those acquired by assignment), absolute or contingent, due or to become due, now
existing or hereafter arising and however acquired and whether or not evidenced
by any note, guaranty or other instrument or for the payment of money, and
includes all letter of credit, cash management and other fees, interest,
charges, expenses, fees, attorneys' fees and disbursements and other sums
chargeable to the Borrowers under this Agreement, any other Loan Document, any
Hedging Contract or any agreement for cash management services entered into in
connection with this Agreement or any other Loan Document and all obligations of
the Borrowers to cash collateralize Letter of Credit Obligations.

         "PBGC" means the Pension Benefit Guaranty Corporation or any successor
thereto.

         "Permit" means any permit, approval, authorization, license, variance
or permission required from a Governmental Authority under an applicable
Requirement of Law.

                                       21
<PAGE>   27

         "Permitted Acquisition" means each Acquisition permitted to be
consummated pursuant to Section 6.4.

         "Permitted Disqualified Stock" has the meaning specified in Section
6.16.

         "Permitted Holders" means (i) any of Selwyn Isakow, his spouse and any
of his lineal descendants and their respective spouses (collectively, the
"Isakow Family"), whether acting in their own name or as one or as a majority of
Persons having the power to exercise the voting rights attached to, or having
investment power over, shares held by others, (ii) any Person wholly owned and
controlled by any member of the Isakow Family, (iii) any trust solely for the
benefit of one or more members of the Isakow Family (whether or not any member
of the Isakow Family is a trustee of such trust) and (iv) the individuals that
are holders on the Effective Date of the Voting Stock of the Company.

         "Permitted Liens" means the Liens permitted under clauses (a) through
(i) of Section 6.3.

         "Person" means an individual, partnership, corporation (including a
business trust), joint stock company, estate, trust, limited liability company,
unincorporated association, joint venture or other entity, or a Governmental
Authority.

         "Pledge and Security Agreement" means an agreement, in substantially
the form of Exhibit H, executed by the Borrowers and each Subsidiary Guarantor.

         "Pledged Notes" has the meaning specified in the Pledge and Security
Agreement.

         "Pledged Stock" has the meaning specified in the Pledge and Security
Agreement.

         "Preferred Stock" means all Lobdell Preferred Stock and all other
preferred stock or similar Stock issued by the Company or any of its Restricted
Subsidiaries at any time.

         "Pro Forma Basis" means, with respect to any determination for any
period, that such determination shall be made giving pro forma effect to each
Permitted Acquisition and Asset Sale of a Person, business or asset consummated
during such period, together with all transactions relating thereto consummated
during such period (including any incurrence, assumption, refinancing or
repayment of Indebtedness), as if such Permitted Acquisition, Asset Sale and
related transactions had been consummated on the first day of such period, in
each case (i) based on historical results accounted for in accordance with GAAP
and, to the extent applicable, reasonable assumptions that are specified in
reasonable detail in the relevant computation furnished to the Administrative
Agent pursuant to Section 5.4(b) or (c) and (ii) prepared in accordance with
Regulation S-X under the Securities Act of 1933, as amended or, if not in
accordance with Regulation S-X, accompanied by a certificate of the Company's
chief financial officer certifying that such determination (including all
related results and assumptions) has been made in a manner not inconsistent with
GAAP and has been approved in writing by the Company's Board of Directors (or
the audit committee thereof, if any).

         "Prohibited Transaction" means any transaction involving any Title IV
Plan which is proscribed by Section 406 of ERISA or Section 4975 of the Code.

         "Projections" means those financial projections dated June 13, 2000,
covering the fiscal years ending in 2001 through 2005, inclusive, delivered to
the Lenders by the Borrowers.

         "Property Loss Event" means any loss of or damage to property of the
Company or any of its Restricted Subsidiaries that results in the receipt by
such Person of proceeds of insurance in excess of $1,000,000 or any taking of
property of the Company or any of its Restricted Subsidiaries that results in
the receipt by such Person of a compensation payment in respect thereof in
excess of $1,000,000.

                                       22
<PAGE>   28
         "Protective Advances" means all expenses, disbursements and advances
incurred by the Administrative Agent pursuant to the Loan Documents after the
occurrence and during the continuance of an Event of Default which the
Administrative Agent, in its sole discretion, deems necessary or desirable to
preserve or protect the Collateral or any portion thereof or to enhance the
likelihood or maximize the amount of repayment of the Obligations.

         "Ratable Portion" or "ratably" means, with respect to any Lender, (a)
with respect to the Revolving Credit Facility, the percentage obtained by
dividing (i) the Revolving Credit Commitment of such Lender by (ii) the
aggregate Revolving Credit Commitments of all Lenders (or, at any time after the
Revolving Credit Termination Date, the percentage obtained by dividing the
aggregate outstanding principal balance of the Revolving Credit Outstandings
owing to such Lender by the aggregate outstanding principal balance of the
Revolving Credit Outstandings owing to all Lenders), and (b) with respect to the
Term Loan Facility, the percentage obtained by dividing (i) the Term Loan
Commitment of such Lender by (ii) the aggregate Term Loan Commitments of all
Lenders (or, at any time after the Effective Date, the percentage obtained by
dividing the principal amount of such Lender's Term Loans by the aggregate Term
Loans of all Lenders).

         "Register" has the meaning specified in Section 9.2(c).

         "Reimbursement Obligations" means all matured reimbursement or
repayment obligations of a Borrower to any Issuer with respect to amounts drawn
under Letters of Credit or to any Canadian Lender with respect to any unpaid
Bankers' Acceptance.

         "Reinvestment Deferred Amount" means, with respect to any Reinvestment
Event, the aggregate Net Cash Proceeds received by the Company or any of its
Subsidiaries in connection therewith which are not initially applied to prepay
the Loans pursuant to Section 2.9 as a result of the delivery of a Reinvestment
Notice.

         "Reinvestment Event" means any Asset Sale or Property Loss Event in
respect of which any of the Borrowers has delivered a Reinvestment Notice.

         "Reinvestment Notice" means a written notice executed by a Responsible
Officer of a Borrower stating that no Default or Event of Default has occurred
and is continuing and that the Borrower (directly or indirectly through one of
its Subsidiaries) intends and expects to use all or a specified portion of the
Net Cash Proceeds of an Asset Sale or Property Loss Event to acquire replacement
assets useful in its or one of its Subsidiaries' businesses or effect repairs in
the case of a Property Loss Event.

         "Reinvestment Prepayment Amount" means, with respect to any
Reinvestment Event, the Reinvestment Deferred Amount relating thereto less any
amount expended or required to be expended pursuant to a Contractual Obligation
entered into prior to the relevant Reinvestment Prepayment Date to acquire
replacement assets useful in a Borrower's business.

         "Reinvestment Prepayment Date" means, with respect to any Reinvestment
Event, the earliest of (i) the date occurring 180 days after such Reinvestment
Event, (ii) the date five Business Days after the date on which a Borrower shall
have notified the Administrative Agent of such Borrower's determination not to
acquire replacement assets useful in the Borrower's or a Restricted Subsidiary's
business or effect repairs in the case of a Property Loss Event (or failure to
diligently pursue such repairs) with all or any portion of the relevant
Reinvestment Deferred Amount and (iii) during the continuance of an Event of
Default, the date specified in a written notice received by the Company from the
Administrative Agent.

         "Related Documents" means the Aries Acquisition Agreement, and each
other document and instrument executed with respect to the Aries Acquisition.

                                       23
<PAGE>   29

         "Release" means, with respect to any Person, any release, spill,
emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal,
leaching or migration, in each case, of any Contaminant into the indoor or
outdoor environment or into or out of any property owned by such Person,
including the movement of Contaminants through or in the air, soil, surface
water, ground water or property.

         "Remedial Action" means all actions required to (a) clean up, remove,
treat or in any other way address any Contaminant in the indoor or outdoor
environment, (b) prevent the Release or threat of Release or minimize the
further Release so that a Contaminant does not migrate or endanger or threaten
to endanger public health or welfare or the indoor or outdoor environment or (c)
perform pre-remedial studies and investigations and post-remedial monitoring and
care.

         "Reportable Event" means a reportable event as described in Section
4043(b) of ERISA including those events as to which the thirty (30) day notice
period is waived under Part 2615 of the regulations promulgated by the PBGC
under ERISA.

         "Requirement of Law" means, with respect to any Person, the common law
and all federal, state, local and foreign laws, rules and regulations, orders,
judgments, decrees and other legal requirements or determinations of any
Governmental Authority or arbitrator, applicable to or binding upon such Person
or any of its property or to which such Person or any of its property is
subject.

         "Requisite Lenders" means, collectively, Lenders having at least (a)
fifty-one percent (51%) of the aggregate outstanding amount of the Revolving
Credit Commitments or, after the Revolving Credit Termination Date, fifty-one
percent (51%) of the aggregate Revolving Credit Outstandings and (b) fifty-one
percent (51%) of the Term Loan Commitments and, after the Effective Date,
fifty-one percent (51%) of the principal amount of all Term Loans then
outstanding. A Non-Funding Lender shall not be included in the calculation of
"Requisite Lenders."

         "Requisite Revolving Credit Lenders" means Revolving Credit Lenders
having at least fifty-one percent (51%) of the aggregate outstanding amount of
the Revolving Credit Commitments or, after the Revolving Credit Termination
Date, fifty-one percent (51%) of the aggregate Revolving Credit Outstandings. A
Non-Funding Lender shall not be included in the calculation of "Requisite
Revolving Credit Lenders."

         "Requisite Term Loan Lenders" means Term Loan Lenders having at least
fifty-one percent (51%) of the Term Loan Commitments or, after the Effective
Date, fifty-one percent (51%) of the principal amount of all Term Loans then
outstanding.

         "Responsible Officer" means, with respect to any Person, any of the
principal executive officers of such Person, but in any event, with respect to
financial matters, the chief financial officer, treasurer or controller of such
Person.

         "Restricted Payment" means (a) any dividend or other distribution,
direct or indirect, on account of any Stock or Stock Equivalents of the Company
or any of its Subsidiaries now or hereafter outstanding, except a dividend
payable solely in Stock or Stock Equivalents or a dividend or distribution
payable solely to the Borrowers and/or one or more Subsidiary Guarantors, (b)
any redemption, retirement, sinking fund or similar payment, purchase or other
acquisition for value, direct or indirect, of any Stock or Stock Equivalents of
the Company or any of its Subsidiaries now or hereafter outstanding other than
one payable solely to the Borrowers and/or one or more Subsidiary Guarantors,
and (c) any payment or prepayment of principal, premium (if any), interest, fees
(including fees to obtain any waiver or consent in connection with any Security)
or other charges on, or redemption, purchase, retirement, defeasance, sinking
fund or similar payment with respect to, any Indebtedness of the Company or any
of its Subsidiaries or any other Loan Party, including any such payment of, or
in respect of, the Mexican Facility Obligations or any action of a Loan Party
that has an effect which is the equivalent of such

                                       24
<PAGE>   30

payment, other than any required redemptions, retirement, purchases, interest
payments or other payments, in each case to the extent permitted to be made by
the terms of such Indebtedness after giving effect to any applicable
subordination provisions.

         "Restricted Subsidiary" means each Subsidiary of the Company that is
not an Unrestricted Subsidiary.

         "Revolving Credit Borrowing" means Revolving Loans made on the same day
by the Revolving Credit Lenders ratably according to their respective Revolving
Credit Commitments.

                  "Revolving Credit Commitment" means, with respect to each
Revolving Credit Lender, the commitment of such Lender to make Revolving Loans
and acquire interests in other Revolving Credit Outstandings in the aggregate
principal amount outstanding not to exceed the amount set forth opposite such
Lender's name on Schedule I under the caption "Revolving Credit Commitment," as
amended to reflect each Assignment and Acceptance or Assumption Agreement
executed by such Lender and as such amount may be adjusted pursuant to this
Agreement.

         "Revolving Credit Facility" means the Revolving Credit Commitments and
the provisions herein related to the Revolving Loans, Swing Loans and Letters of
Credit.

         "Revolving Credit Lender" means each Lender having a Revolving Credit
Commitment.

         "Revolving Credit Note" means any promissory note of any Borrower
payable to the order of any Revolving Credit Lender in a principal amount equal
to the amount of such Lender's Revolving Credit Commitment evidencing the
aggregate Indebtedness of such Borrower to such Lender resulting from the
Revolving Loans owing to such Lender.

         "Revolving Credit Outstandings" means, at any particular time, the sum
of (a) the principal amount of the Revolving Loans outstanding at such time plus
(b) the Letter of Credit Obligations outstanding at such time plus (c) the
principal amount of the Swing Loans outstanding at such time plus (d) the face
amount of Bankers' Acceptances and the principal amount of BA Equivalent Loans
outstanding at such time. For the purposes of determining the amount of
Revolving Credit Outstandings (or any component thereof) in respect of any such
Obligation that is denominated in an Alternate Currency, such amount shall equal
the Dollar Equivalent of the amount of such Alternate Currency at the time of
determination thereof.

         "Revolving Credit Termination Date" means the earliest of (a) the
Scheduled Termination Date, (b) the date of termination of the Revolving Credit
Commitments pursuant to Section 2.6 and (c) the date on which the Obligations
become due and payable pursuant to Section 9.2.

         "Revolving Loan" has the meaning specified in Section 2.1(a).

         "Scheduled Termination Date" means the earlier of (a) June 30, 2005 and
(b) the "Termination Date" as defined under the Mexican Facility Documents.

         "Screen" means the Dow Jones Market Services telerate screen or such
other comparable publicly available service for displaying eurocurrency rates as
may be selected by the Administrative Agent.

         "Secured Obligations" means (a) in the case of the Company, the
Obligations of the Company and the Mexican Facility Tranche A Guaranty
Obligations, (b) in the case of any Guarantor that is a Domestic Subsidiary, the
obligations of such Guarantor under the Guaranty and the other Loan Documents to
which it is a party and the Mexican Facility Tranche A Guaranty Obligations, (c)
in the case of any Guarantor that is a Canadian Borrower, the Obligations of
such Guarantor in its capacity as a

                                       25
<PAGE>   31

Canadian Borrower, the obligations of such Guarantor under the Guaranty and the
Mexican Facility Tranche A Guaranty Obligations, and (d) in the case of any
Guarantor that is a Foreign Subsidiary (other than the Canadian Borrowers), the
obligations of such Guarantor under the Guaranty and the other Loan Documents to
which it is a party.

         "Secured Parties" means (a) the Lenders, the Issuers, the
Administrative Agent, the Collateral Agent and any other holder of any of the
Obligations and (b) if and to the extent set forth in the Mexican Intercreditor
Agreement, any holder of the Mexican Facility Tranche A Guaranty Obligations.

         "Security" means any Stock, Stock Equivalent, voting trust certificate,
bond, debenture, note or other evidence of Indebtedness, whether secured,
unsecured, convertible or subordinated, or any certificate of interest, share or
participation in, or any temporary or interim certificate for the purchase or
acquisition of, or any right to subscribe to, purchase or acquire, any of the
foregoing, but shall not include any evidence of the Obligations.

         "Senior Leverage Ratio" means, with respect to any Person for any
period, the ratio of (a) (i) Total Debt of such Person as of the last day of
such period minus (ii) that portion of such Total Debt constituting Subordinated
Debt to (b) EBITDA for such Person for such period.

         "Senior Subordinated Debt Documents" means the Senior Subordinated Note
Indentures, the Senior Subordinated Notes and all agreements and documents
executed in connection therewith at any time, including without limitation those
agreements and documents listed on Schedule 4.20.

         "Senior Subordinated Notes" means the Senior Subordinated Notes issued
by the Company in the aggregate original principal amount of $200,000,000 due
2007 issued pursuant to the Senior Subordinated Note Indentures.

         "Senior Subordinated Note Indentures" means, collectively, the Senior
Subordinated Indenture between the Company, the subsidiary guarantors named
therein and First Trust National Association, as trustee, dated as of June 24,
1997, as amended or modified from time to time and the Indenture between the
Company, the subsidiary guarantors named therein, and U.S. Bank Trust National
Association, as trustee, dated as of December 1, 1998, as amended or modified
from time to time.

         "Solvent" means, with respect to any Person, that the value of the
assets of such Person (both at fair value and present fair saleable value) is,
on the date of determination, greater than the total amount of liabilities
(including contingent and unliquidated liabilities) of such Person as of such
date and that, as of such date, such Person is able to pay all liabilities of
such Person as such liabilities mature and does not have unreasonably small
capital. In computing the amount of contingent or unliquidated liabilities at
any time, such liabilities will be computed at the amount which, in light of all
the facts and circumstances existing at such time, represents the amount that
can reasonably be expected to become an actual or matured liability.

         "SPC" has the meaning specified in Section 9.2(e).

         "Stock" means shares of capital stock (whether denominated as common
stock or preferred stock), beneficial, partnership or membership interests,
participations or other equivalents (regardless of how designated) of or in a
corporation, partnership, limited liability company or equivalent entity,
whether voting or non-voting.

         "Stock Equivalents" means all securities convertible into or
exchangeable for Stock and all warrants, options or other rights to purchase or
subscribe for any Stock, whether or not presently convertible, exchangeable or
exercisable.

                                       26
<PAGE>   32

"Subordinated Debt" of any Person shall mean, as of any date, that Indebtedness
of such Person for borrowed money which is expressly subordinate and junior in
right and priority of payment to the Obligations and other Indebtedness of such
Person to the Lenders in manner, by agreement and subject to terms and
provisions satisfactory in form and substance to the Requisite Lenders and
subject to such other terms and provisions, including without limitation
maturities, covenants, defaults, rates and fees, acceptable to the Requisite
Lenders, and shall include, without limitation, all Indebtedness owing pursuant
to the Senior Subordinated Debt Documents and any Permitted Disqualified Stock.

         "Subordinated Debt Documents" means the Senior Subordinated Debt
Documents and any other agreement or document evidencing or relating to any
Subordinated Debt, whether under the Senior Notes or any other Subordinated
Debt.

         "Subsidiary" means, with respect to any Person, any corporation,
partnership, limited liability company or other business entity of which an
aggregate of 50% or more of the outstanding Voting Stock is, at the time,
directly or indirectly, owned or controlled by such Person and/or one or more
Subsidiaries of such Person.

         "Subsidiary Guarantor" means each Domestic Subsidiary and each Canadian
Subsidiary of the Company party to the Guaranty.

         "Swing Loan" has the meaning specified in Section 2.3.

         "Swing Loan Commitment" means, with respect to the Swing Loan Lender,
the commitment of such Swing Loan Lender to make Swing Loans to the Borrowers
pursuant to Section 2.3 in the aggregate principal amount at any time
outstanding not to exceed the lesser of (i) such Lender's Revolving Credit
Commitment and (ii) $25,000,000.

         "Swing Loan Lender" means Citicorp and each other Revolving Credit
Lender who becomes the Administrative Agent or who agrees with the approval of
the Administrative Agent and the Borrowers to act as a Swing Loan Lender
hereunder.

         "Swing Loan Request" has the meaning specified in Section 2.3(b).

         "Syndication Agent" has the meaning specified at the beginning of this
Agreement.

         "Tax Sharing Agreement" means any tax sharing or similar agreement, if
any, entered into between the Company and its Subsidiaries at any time, as
amended or modified from time to time.

         "Taxes" has the meaning specified in Section 2.17(a).

         "Term Loan" has the meaning specified in Section 2.1(b).

         "Term Loan Borrowing" means Term Loans made on the same day by the Term
Loan Lenders ratably according to their respective Term Loan Commitments.

         "Term Loan Commitment" means, with respect to each Term Loan Lender,
the commitment of such Lender to make Term Loans to the Borrowers in the
aggregate principal amount outstanding not to exceed the amount set forth
opposite such Lender's name on Schedule I under the caption "Term Loan
Commitment" as amended to reflect each Assignment and Acceptance or Assumption
Agreement executed by such Lender and as such amount may be adjusted pursuant to
this Agreement.

         "Term Loan Facility" means the Term Loan Commitments and the provisions
herein related to the Term Loans.

                                       27
<PAGE>   33

         "Term Loan Lender" means each Lender having a Term Loan Commitment.

         "Term Loan Maturity Date" means the earlier of (a) June 30, 2005 and
(b) the "Termination Date" as defined under the Mexican Facility Documents.

         "Term Loan Note" means any promissory note of any Borrower payable to
the order of any Term Loan Lender in a principal amount equal to the amount of
such Lender's Term Loan Commitment evidencing the Indebtedness of such Borrower
to such Lender resulting from the Term Loan owing to such Lender.

         "Title IV Plan" means a pension plan, other than a Multiemployer Plan,
which is covered by Title IV of ERISA to which the Company any of its
Subsidiaries or any ERISA Affiliate has any obligation or liability (contingent
or otherwise).

         "Tooling" shall mean dies, molds, tooling and similar items.

         "Tooling Indebtedness" shall mean all present and future Indebtedness
of the Company and its Restricted Subsidiaries the proceeds of which are
utilized to finance Tooling for which the sales of such Tooling is covered under
specific written purchase orders or agreements between the Company or any
Subsidiary and the purchaser of such Tooling, which Indebtedness can be and is
being fully serviced by payments for such Tooling so financed and which payments
are not in dispute, all as determined by the Administrative Agent, and which
Indebtedness can be classified as "Tooling Indebtedness" under the Senior
Subordinated Debt Documents.

         "Total Assets" of any Person means, at any date, the total assets of
such Person and its Subsidiaries at such date determined on a consolidated basis
in conformity with GAAP minus (a) any minority interest in non-wholly-owned
Subsidiaries that would be reflected on a consolidated balance sheet of such
person and its Subsidiaries at such date prepared in conformity with GAAP and
(b) any Securities issued by such Person held as treasury securities.

         "Total Debt" shall mean, as of any date, each of the following, on a
consolidated basis for the Company and its Restricted Subsidiaries without
duplication: (a) all Indebtedness (except as hereafter provided) for borrowed
money and similar monetary obligations evidenced by bonds, notes, debentures,
Capital Lease obligations, bankers' acceptances or otherwise, including without
limitation all assumed Indebtedness and all obligations in respect of the
deferred purchase price of properties or assets and the factoring of accounts
receivable, in each case whether direct or indirect; plus (b) all liabilities
secured by any Lien existing on property owned or acquired subject thereto,
whether or not the liability secured thereby shall have been assumed; plus (c)
all reimbursements obligations under outstanding letters of credit in respect of
drafts which may be presented or have been presented and have not yet been paid
and are not included in clause (a) above; plus (d) Permitted Disqualified Stock
or Disqualified Stock (other than the Lobdell Preferred Stock); plus (e) all
Guaranty Obligations with respect to any of the indebtedness, obligations or
liabilities described in the foregoing clauses (a), (b), (c) or (d), including
without limitation all Guaranty Obligations of the Company or any Restricted
Subsidiary with respect to any such indebtedness, obligations or liabilities of
any Unrestricted Subsidiaries; minus (f) deferred reimbursement tooling
indebtedness, i.e., only that portion of Tooling Indebtedness to be paid by the
purchaser of the related Tooling in the piece price over the term of the related
tooling contract consistent with current practice; minus (g) Cash Equivalents
and cash of the Company and its Restricted Subsidiaries (less any book
overdrafts, bank overdrafts or similar items) in an aggregate amount not to
exceed $30,000,000 as long as the aggregate amount of all outstanding Revolving
Loans and Acceptances is greater than $5,000,000. "Total Debt" shall in no event
include obligations in respect of factoring or securitization of accounts
receivable or synthetic leases to the extent such obligations are non-recourse
to the Company and its Restricted Subsidiaries or are subordinated to the
Obligations (but only if such subordination meets the requirements set forth in
the definition of "Subordinated Debt").

                                       28
<PAGE>   34

         "Unfunded Pension Liability" means, with respect to the Company and its
Subsidiaries at any time, the sum of (a) the amount, if any, by which the
present value of all accrued benefits under each Title IV Plan (other than any
Title IV Plan subject to Section 4063 of ERISA) exceeds the fair market value of
all assets of such Title IV Plan allocable to such benefits in accordance with
Title IV of ERISA, as determined as of the most recent valuation date for such
Title IV Plan using the actuarial assumptions in effect under such Title IV
Plan, and (b) the aggregate amount of withdrawal liability that could be
assessed under Section 4063 with respect to each Title IV Plan subject to such
Section, separately calculated for each such Title IV Plan as of its most recent
valuation date and (c) for a period of five years following a transaction
reasonably likely to be covered by Section 4069 of ERISA, the liabilities
(whether or not accrued) that could be avoided by the Company, any of its
Subsidiaries or any ERISA Affiliate as a result of such transaction.

         "Unrestricted Subsidiary" means any Foreign Subsidiary of the Company
existing as of the Effective Date and described on Schedule III and each Foreign
Subsidiary of the Company created or acquired after the Effective Date that is
designated by the Company as an "Unrestricted Subsidiary".

         "Unused Commitment Fee" has the meaning specified in Section 2.13(a).

         "Voting Stock" means Stock of any Person having ordinary power to vote
in the election of members of the board of directors, managers, trustees or
other controlling Persons, of such Person (irrespective of whether, at the time,
Stock of any other class or classes of such entity shall have or might have
voting power by reason of the happening of any contingency).

         "Wackenhut" means Gebr. Wackenhut GmbH Karosserie-und Fahrzeug Fabrik,
a corporation organized under the laws of the Federal Republic of Germany.

         "Withdrawal Liability" means, with respect to the Company and its
Subsidiaries at any time, the aggregate liability incurred (whether or not
assessed) with respect to all Multiemployer Plans pursuant to Section 4201 of
ERISA or for increases in contributions required to be made pursuant to Section
4243 of ERISA.

         "Working Capital" means, for any Person at any date, the amount by
which the Consolidated Current Assets of such Person at such date exceeds the
Consolidated Current Liabilities of such Person at such date.

         SECTION 1.2. COMPUTATION OF TIME PERIODS. In this Agreement, in the
computation of periods of time from a specified date to a later specified date,
the word "from" means "from and including" and the words "to" and "until" each
mean "to but excluding" and the word "through" means "to and including."

         SECTION 1.3. ACCOUNTING TERMS AND PRINCIPLES; DOLLAR EQUIVALENT.

         (a)    Except as set forth below, all accounting terms not specifically
defined herein shall be construed in conformity with GAAP and all accounting
determinations required to be made pursuant hereto shall, unless expressly
otherwise provided herein, be made in conformity with GAAP.

         (b)    If any change in the accounting principles used in the
preparation of the most recent Financial Statements referred to in Section 6.1
is hereafter required or permitted by the rules, regulations, pronouncements and
opinions of the Financial Accounting Standards Board or the American Institute
of Certified Public Accountants (or any successors thereto) and such change is
adopted by the Borrowers with the agreement of their independent public
accountants and results in a change in any of the calculations required by
Article V or Article VIII had such accounting change not occurred, the parties
hereto agree to enter into negotiations in order to amend such provisions so as
to equitably reflect such change with the desired result that the criteria for
evaluating compliance with such covenants by the

                                       29

<PAGE>   35

Borrowers shall be the same after such change as if such change had not been
made; provided, however, that no change in GAAP that would affect a calculation
that measures compliance with any covenant contained in Article V or Article
VIII shall be given effect until such provisions are amended to reflect such
changes in GAAP.

         (c)    Except as expressly set forth herein to the contrary, all
references to amounts denominated in Dollars shall mean and be a reference to
such amount in Dollars or the Dollar Equivalent thereof in any applicable
currency.

         SECTION 1.4. CERTAIN TERMS.

         (a)    The words "herein," "hereof" and "hereunder" and similar words
refer to this Agreement as a whole, and not to any particular Article, Section,
subsection or clause in, this Agreement.

         (b)    References in this Agreement to an Exhibit, Schedule, Article,
Section, subsection or clause refer to the appropriate Exhibit or Schedule to,
or Article, Section, subsection or clause in this Agreement.

         (c)    Each agreement defined in this Article I shall include all
appendices, exhibits and schedules thereto. If the prior written consent of the
Requisite Lenders is required hereunder for an amendment, restatement,
supplement or other modification to any such agreement and such consent is
obtained, references in this Agreement to such agreement shall be to such
agreement as so amended, restated, supplemented or modified.

         (d)    References in this Agreement to any statute shall be to such
statute as amended or modified and in effect at the time any such reference is
operative.

         (e)    The term "including" when used in any Loan Document means
"including without limitation" except when used in the computation of time
periods.

         (f)    The terms "Lender," "Issuer" and "Administrative Agent" include
their respective successors.

         (g)    Upon the appointment of any successor Administrative Agent
pursuant to Section 8.6, references to Citicorp in Section 8.3 and to Citibank
in the definitions of Base Rate, Dollar Equivalent and Eurocurrency Rate shall
be deemed to refer to the financial institution then acting as the
Administrative Agent or one of its Affiliates if it so designates.

                                   ARTICLE II

                                 THE FACILITIES

         SECTION 2.1. THE COMMITMENTS.

         (a)    Revolving Credit Commitments. On the terms and subject to the
conditions contained in this Agreement, each Revolving Credit Lender severally
agrees to make loans in Dollars or in an Alternate Currency (each a "Revolving
Loan") to the Borrowers from time to time on any Business Day during the period
from the date hereof until the Revolving Credit Termination Date in an aggregate
amount not to exceed at any time outstanding for all such loans by such Lender
such Lender's Revolving Credit Commitment; provided, however, that (i) the
aggregate outstanding principal amount of Revolving Credit Outstandings in any
Alternate Currency shall at no time exceed the Multicurrency Sublimit for such
Alternate Currency and (ii) only Canadian Lenders shall be obligated to make
Revolving Loans to a Canadian Borrower in accordance with their respective
Canadian Ratable Portions and such Revolving Loans shall only be denominated in
Canadian Dollars. Within the limits of each Lender's Revolving

                                       30
<PAGE>   36

Credit Commitment, amounts of Revolving Loans repaid may be reborrowed under
this Section 2.1(a). On the Effective Date, the outstanding aggregate amount of
Existing Revolving Credit Loans shall be amended, combined and continued, and
such amended, combined and continued amount shall be, and shall be deemed to be,
Revolving Credit Outstandings and/or participations in Letters of Credits made
by the Revolving Credit Lenders hereunder. Each Revolving Credit Lender
severally agrees, on the terms and conditions set forth herein, to purchase and
assume on the Effective Date an undivided interest in the rights and obligations
of the Existing Lenders in an amount equal to (a) as to each such Lender, such
Lender's Ratable Portion of the aggregate principal amount of such Existing
Revolving Credit Loans owing by the Company and (b) as to each such Lender that
is a Canadian Lender, such Lender's Canadian Ratable Portion of the aggregate
principal amount of such Existing Revolving Credit Loans owing by the Borrowing
Subsidiaries. In furtherance of the foregoing, on the Effective Date, (I) each
Revolving Credit Lender shall, in accordance with Section 2.2, make a Revolving
Credit Loan in an amount equal to the difference between such Lender's Revolving
Credit Commitment and such Lender's Ratable Portion of the sum of (a) the
Existing Revolving Credit Loans then owing by the Company and (b) the Revolving
Credit Loans requested by the Company to be made to it on the Effective Date and
(II) each Revolving Credit Lender that is a Canadian Lender shall, in accordance
with Section 2.2, make a Revolving Credit Loan in an amount equal to the
difference between such Lender's Revolving Credit Commitment and such Lender's
Canadian Ratable Portion of the sum of (a) the Existing Revolving Credit Loans
then owing by the Borrowing Subsidiaries and (b) the Revolving Credit Loans
requested by the Borrowing Subsidiaries to be made to them on the Effective
Date.

         (b)    Term Loan Commitments. On the terms and subject to the
conditions contained in this Agreement, each Term Loan Lender severally agrees
to make a loan (each a "Term Loan") to the Borrowers in Dollars on the Effective
Date and, if applicable, on each Facilities Increase Effective Date, in an
amount not to exceed such Lender's Term Loan Commitment in effect on such date.
Amounts of Term Loans repaid or prepaid may not be reborrowed.

         SECTION 2.2. BORROWING PROCEDURES.

         (a)    Each Revolving Credit Borrowing shall be made on notice given by
the Borrowers to the Administrative Agent not later than 11:00 a.m. (New York
City time) (i) one Business Day, in the case of a Borrowing of Base Rate Loans
and (ii) three Business Days, in the case of a Borrowing of Eurocurrency Rate
Loans, prior to the date of the proposed Revolving Credit Borrowing. Each such
notice shall be in substantially the form of Exhibit C (a "Notice of
Borrowing"), specifying (A) the date of such proposed Revolving Credit
Borrowing, (B) the aggregate amount of such proposed Revolving Credit Borrowing,
(C) whether any portion of the proposed Revolving Credit Borrowing will be of
Base Rate Loans or Eurocurrency Rate Loans, (D) the initial Interest Period or
Periods for any such Eurocurrency Rate Loans and (E) the applicable Borrower and
Currency of such Revolving Credit Borrowing. The Revolving Loans shall be made
as Base Rate Loans unless (subject to Section 2.14) the Notice of Borrowing
specifies that all or a portion thereof shall be Eurocurrency Rate Loans;
provided, however, that all Canadian Loans shall be made as Base Rate Loans and
all Loans denominated in Euros shall be made as Eurocurrency Rate Loans. Each
Revolving Credit Borrowing shall be in an aggregate amount of not less than
$5,000,000 or an integral multiple of $1,000,000 in excess thereof, or, in the
case of Multicurrency Loans, in an aggregate minimum principal amount equal to
an integral multiple of 100,000 units in the applicable Alternate Currency and
(converted to the Dollar Equivalent thereof) equal to or greater than
$5,000,000. For the purposes of determining compliance with this Section 2.2(a),
the Dollar Equivalent of a Multicurrency Loan shall be determined by the
Administrative Agent upon receipt from the Borrower of the Notice of Borrowing
requesting such Multicurrency Loan, and such Dollar Equivalent shall be
recalculated on each date that it shall be necessary to determine the unused
portion of each Lender's Revolving Credit Commitment or any or all of the
Revolving Credit Outstandings on such date.

         (b)    Each Term Loan Borrowing shall be made upon receipt of a Notice
of Borrowing given by the Borrowers to the Administrative Agent not later than
11:00 a.m. (New York City time) (i)

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<PAGE>   37

one Business Day, in the case of a Borrowing of Base Rate Loans and (ii) three
Business Days, in the case of a Borrowing of Eurocurrency Rate Loans, prior to
the Effective Date or a Facilities Increase Effective Date, as applicable. The
Notice of Borrowing shall specify (A) the Effective Date or the applicable
Facilities Increase Effective Date, (B) the aggregate amount of such proposed
Term Loan Borrowing, (C) whether any portion of the proposed Term Loan Borrowing
will be of Base Rate Loans or Eurocurrency Rate Loans, and (D) the initial
Interest Period or Periods for any such Eurocurrency Rate Loans. The Term Loans
shall be made as Base Rate Loans unless (subject to Section 2.15) the Notice of
Borrowing specifies that all or a portion thereof shall be Eurocurrency Rate
Loans.

         (c)    The Administrative Agent shall give to each Lender prompt notice
of the Administrative Agent's receipt of a Notice of Borrowing and, if
Eurocurrency Rate Loans are properly requested in such Notice of Borrowing, the
applicable interest rate determined pursuant to Section 2.15(a). Each Lender
shall, before 11:00 a.m. (New York City time) or 10:00 a.m. (Toronto time) in
the case of Canadian Loans on the date of the proposed Borrowing, make available
to the Administrative Agent at its address referred to in Section 9.8, in
immediately available funds, such Lender's Ratable Portion or Canadian Ratable
Portion, as applicable of such proposed Borrowing. After the Administrative
Agent's receipt of such funds and upon fulfillment of the applicable conditions
set forth in Sections 3.1, 3.2 and 3.3, as applicable, the Administrative Agent
will make such funds available to the Borrowers.

         (d)    Unless the Administrative Agent shall have received notice from
a Lender prior to the date of any proposed Borrowing that such Lender will not
make available to the Administrative Agent such Lender's Ratable Portion or,
Canadian Ratable Portion in the case of a Borrowing by a Canadian Borrower, the
Administrative Agent may assume that such Lender has made such Ratable Portion
or, Canadian Ratable Portion, as applicable, available to the Administrative
Agent on the date of such Borrowing in accordance with this Section 2.2 and the
Administrative Agent may, in reliance upon such assumption, make available to
the applicable Borrower on such date a corresponding amount. If and to the
extent that such Lender shall not have so made such Ratable Portion or, Canadian
Ratable Portion, as applicable, available to the Administrative Agent, such
Lender and the applicable Borrower severally agree to repay to the
Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made available to
such Borrower until the date such amount is repaid to the Administrative Agent,
at (i) in the case of such Borrower, the interest rate applicable at the time to
the Loans comprising such Borrowing and (ii) in the case of such Lender, the
Interbank Rate for the first Business Day and thereafter at the interest rate
applicable at the time to the Loans comprising such Borrowing. If such Lender
shall repay to the Administrative Agent such corresponding amount, such amount
so repaid shall constitute such Lender's Loan as part of such Borrowing for
purposes of this Agreement. If the applicable Borrower shall repay to the
Administrative Agent such corresponding amount, such payment shall not relieve
such Lender of any obligation it may have hereunder to such Borrower.

         (e)    Notwithstanding anything in this Section 2.2 to the contrary, if
any Revolving Credit Lender shall, not later than 10:00 a.m. (London time) two
Business Days before the date of any requested Borrowing of Multicurrency Loans,
notify the Administrative Agent that such Lender is not satisfied that deposits
in the relevant Alternate Currency will be freely available to it in the
relevant amount and for the relevant Interest Period, the right of the Borrowers
to request Multicurrency Loans in such Alternate Currency from such Lender as
part of such Borrowing or any subsequent Borrowing of Multicurrency Loans shall
be suspended until such Lender shall notify the Administrative Agent that the
circumstances causing such suspension no longer exist, and, at the option of the
Borrowers, either (i) the applicable Notice of Borrowing may be withdrawn and
such Borrowing shall not be made or (ii) the Multicurrency Loan to be made by
such Lender as part of such Borrowing (and the Multicurrency Loan to be made by
such Lender as part of any subsequent Borrowing of Multicurrency Loans in
respect of which such Alternate Currency shall have been requested during such
period of suspension) shall be a Eurocurrency Rate Loan denominated in Dollars
and having an Interest Period coextensive with the Interest Period in effect in
respect of all other Multicurrency Loans comprising a part of such Borrowing. If
the Borrowers elect to withdraw their Notice of Borrowing, the Borrower shall be
liable to each

                                       32
<PAGE>   38

Revolving Credit Lender for any damages suffered on account thereof of a nature
described in Section 2.16(b). The Administrative Agent shall, upon receiving
notice from such Lender that the circumstances causing any such suspension no
longer apply, promptly so notify the Borrower; provided, however, that the
failure of the Administrative Agent to so notify the Borrower shall not impair
the rights of the Revolving Credit Lenders under this Section 2.2(e) or expose
the Administrative Agent to any liability.

         (f)    Notwithstanding anything in this Section 2.2 to the contrary, in
the event a Canadian Borrower requests a Borrowing of Revolving Loans, the
Non-Canadian Lenders shall not be required to fund their Ratable Portion of such
Borrowing. Subject to the fulfillment of the conditions precedent set forth in
Sections 3.1, 3.2 and 3.3, as applicable, each Canadian Lender agrees to fund
its Canadian Ratable Portion of such Borrowing; provided, however, that in no
event shall the amount of Revolving Credit Outstandings owing to such Lender,
after giving effect to such Borrowing, exceed such Lender's Revolving Credit
Commitment in effect at such time.

         (g)    If on any Business Day, the Revolving Credit Outstandings owing
to any Canadian Lender are greater than such Canadian Lender's Ratable Portion
of the Revolving Credit Outstandings, then upon the request of any Lender or the
Borrower to the Administrative Agent or at the direction of the Administrative
Agent (with notice from the Administrative Agent to each Revolving Credit Lender
and the Borrowers), to the extent the Canadian Lenders have outstanding
Revolving Loans denominated in Dollars or Euros, each Revolving Credit Lender
that is not a Canadian Lender, shall purchase from the Canadian Lenders such
Revolving Loans denominated in Dollars or Euros as shall be necessary to cause
each Revolving Credit Lender to have Revolving Credit Outstandings owing to it
equal to its Ratable Portion of the Revolving Credit Outstandings. The amount of
such Loans purchased by each Revolving Credit Lender pursuant to this paragraph
shall be determined by the Administrative Agent in accordance with each
Revolving Lender's Ratable Portion. No request by the Borrower or a Lender under
this paragraph may be made more that once in any 10 Business Day period and,
unless a Default or Event of Default shall have occurred and be continuing, no
purchase of a Eurocurrency Rate Loan may occur on any day other than the last
day of the applicable Interest Period.

         (h)    The failure of any Lender to make the Loan or any payment
required by it on the date specified (a "Non-Funding Lender"), including any
payment in respect of its participation in Swing Loans and Letter of Credit
Obligations, shall not relieve any other Lender of its obligations to make such
Loan or payment on such date but no such other Lender shall be responsible for
the failure of any Non-Funding Lender to make a Loan or payment required under
this Agreement.

         SECTION 2.3. SWING LOANS.

         (a)    On the terms and subject to the conditions contained in this
Agreement, the Swing Loan Lender may in its sole discretion make loans (each a
"Swing Loan") otherwise available to the Borrowers under the Revolving Credit
Facility from time to time on any Business Day during the period from the date
hereof until the Revolving Credit Termination Date in an aggregate amount at any
time outstanding at any time not to exceed the Swing Loan Lender's Swing Loan
Commitment. Each Swing Loan shall be a Base Rate Loan denominated in Dollars and
must be repaid in full within seven days of its making or, if sooner, upon any
Revolving Credit Borrowing hereunder and shall in any event mature no later than
the Revolving Credit Termination Date. Within the limits set forth in the first
sentence of this Section 2.3(a), amounts of Swing Loans repaid may be reborrowed
under this Section 2.3(a).

         (b)    In order to request a Swing Loan, the Borrowers shall telecopy
to the Administrative Agent a duly completed request setting forth the date, the
requested amount and date of the Swing Loan (a "Swing Loan Request"), to be
received by the Administrative Agent not later than 1:00 p.m. (New York City
time) on the day of the proposed borrowing. The Administrative Agent shall
promptly notify the Swing Loan Lender of the details of the requested Swing
Loan. Subject to the terms of this Agreement, the Swing Loan Lender shall make a
Swing Loan available to the Administrative

                                       33
<PAGE>   39

Agent which will make such amounts available to the Borrowers on the date of the
relevant Swing Loan Request. The Swing Loan Lender shall not make any Swing Loan
in the period commencing on the first Business Day after it receives written
notice from any Lender that one or more of the conditions precedent contained in
Section 3.2 shall not on such date be satisfied, and ending when such conditions
are satisfied. The Swing Loan Lender shall not otherwise be required to
determine that, or take notice whether, the conditions precedent set forth in
Section 3.2 hereof have been satisfied in connection with the making of any
Swing Loan.

         (c)    The Swing Loan Lender shall notify the Administrative Agent in
writing (which may be by telecopy) weekly, by no later than 10:00 a.m. (New York
City time) on the first Business Day of each week, of the aggregate principal
amount of its Swing Loans then outstanding.

         (d)    The Swing Loan Lender may demand at any time that each Revolving
Credit Lender pay to the Administrative Agent, for the account of the Swing Loan
Lender, in the manner provided in clause (e) below, such Revolving Credit
Lender's Ratable Portion of all or a portion of the outstanding Swing Loans,
which demand shall be made through the Administrative Agent, shall be in writing
and shall specify the outstanding principal amount of Swing Loans demanded to be
paid.

         (e)    The Administrative Agent shall forward each notice referred to
in clause (c) above and each demand referred to in clause (d) above to each
Revolving Credit Lender on the day such notice or such demand is received by the
Administrative Agent (except that any such notice or demand received by the
Administrative Agent after 2:00 p.m. (New York City time) on any Business Day or
any such demand received on a day that is not a Business Day shall not be
required to be forwarded to the Revolving Credit Lenders by the Administrative
Agent until the next succeeding Business Day), together with a statement
prepared by the Administrative Agent specifying the amount of each Revolving
Credit Lender's Ratable Portion of the aggregate principal amount of the Swing
Loans stated to be outstanding in such notice or demanded to be paid pursuant to
such demand, and, notwithstanding whether or not the conditions precedent set
forth in Section 3.2 shall have been satisfied (which conditions precedent the
Revolving Credit Lenders hereby irrevocably waive), each Revolving Credit Lender
shall, before 11:00 a.m. (New York City time) on the Business Day next
succeeding the date of such Revolving Credit Lender's receipt of such written
statement, make available to the Administrative Agent, in immediately available
funds, for the account of the Swing Loan Lender, the amount specified in such
statement. Upon such payment by a Revolving Credit Lender, such Revolving Credit
Lender shall, except as provided in clause (f) below, be deemed to have made a
Revolving Loan to the Borrowers. The Administrative Agent shall use such funds
to repay the Swing Loans to the Swing Loan Lender. To the extent that any
Revolving Credit Lender fails to make such payment available to the
Administrative Agent for the account of the Swing Loan Lender, the Borrowers
shall repay such Swing Loan on demand.

         (f)    Upon the occurrence of a Default under Section 7.1(f), each
Revolving Credit Lender shall acquire, without recourse or warranty, an
undivided participation in each Swing Loan otherwise required to be repaid by
such Revolving Credit Lender pursuant to clause (e) above, which participation
shall be in a principal amount equal to such Revolving Credit Lender's Ratable
Portion of such Swing Loan, by paying to the Swing Loan Lender on the date on
which such Revolving Credit Lender would otherwise have been required to make a
payment in respect of such Swing Loan pursuant to clause (e) above, in
immediately available funds, an amount equal to such Revolving Credit Lender's
Ratable Portion of such Swing Loan. If such amount is not in fact made available
by such Revolving Credit Lender to the Swing Loan Lender on such date, the Swing
Loan Lender shall be entitled to recover such amount on demand from such
Revolving Credit Lender together with interest accrued from such date at the
Interbank Rate for the first Business Day after such payment was due and
thereafter at the rate of interest then applicable to Base Rate Loans.

         (g)    From and after the date on which any Revolving Credit Lender is
deemed to have made a Revolving Credit Loan pursuant to clause (e) above with
respect to any Swing Loan or purchases an undivided participation interest in a
Swing Loan pursuant to clause (f) above, a Swing Loan Lender

                                       34
<PAGE>   40

shall promptly distribute to such Revolving Credit Lender such Revolving Credit
Lender's Ratable Portion of all payments of principal of and interest received
by the Swing Loan Lender on account of such Swing Loan other than those received
from a Revolving Credit Lender pursuant to clause (e) or (f) above.

         SECTION 2.4. LETTERS OF CREDIT.

         (a)  On the terms and subject to the conditions contained in this
Agreement, each Issuer agrees to issue one or more Letters of Credit at the
request of the Borrowers for the account of the Borrowers from time to time
during the period commencing on the Effective Date and ending on the earlier of
the Revolving Credit Termination Date and five (5) days prior to the Scheduled
Termination Date; provided, however, that no Issuer shall be under any
obligation to issue any Letter of Credit if:

              (i)       any order, judgment or decree of any Governmental
    Authority or arbitrator shall purport by its terms to enjoin or restrain
    such Issuer from issuing such Letter of Credit or any Requirement of Law
    applicable to such Issuer or any request or directive (whether or not having
    the force of law) from any Governmental Authority with jurisdiction over
    such Issuer shall prohibit, or request that such Issuer refrain from, the
    issuance of letters of credit generally or such Letter of Credit in
    particular or shall impose upon such Issuer with respect to such Letter of
    Credit any restriction or reserve or capital requirement (for which such
    Issuer is not otherwise compensated) not in effect on the date of this
    Agreement or result in any unreimbursed loss, cost or expense which was not
    applicable, in effect or known to such Issuer as of the date of this
    Agreement and which such Issuer in good faith deems material to it;

              (ii)     such Issuer shall have received written notice from the
    Administrative Agent, any Revolving Credit Lender or the Borrowers, on or
    prior to the requested date of issuance of such Letter of Credit, that one
    or more of the applicable conditions contained in Sections 3.1 and 3.2 is
    not then satisfied;

              (iii)    after giving effect to the issuance of such Letter of
    Credit, the aggregate Revolving Credit Outstandings would exceed the
    aggregate of the Revolving Credit Commitments in effect at such time;

              (iv)     after giving effect to the issuance of such Letter of
    Credit, the Letter of Credit Obligations at such time exceeds $30,000,000;

              (v)      any fees due in connection with a requested issuance have
    not been paid; or

              (vi)     if such Letter of Credit is in a currency other than
    Dollars.

None of the Revolving Credit Lenders (other than the Issuers in their capacity
as such) shall have any obligation to issue any Letter of Credit.

         (b)  In no event shall the expiration date of any Letter of Credit (i)
be more than one year after the date of issuance thereof, or (ii) be less than
five (5) days prior to the Scheduled Termination Date; provided, however, that
any Letter of Credit with a one-year term may provide for the renewal thereof
for additional one-year periods (which shall in no event extend beyond the
expiry date referred to in clause (ii) above).

         (c)  In connection with the issuance of each Letter of Credit, the
Borrowers shall give the relevant Issuer and the Administrative Agent at least
two Business Days' prior written notice, in substantially the form of Exhibit D
(or in such other written or electronic form as is acceptable to the Issuer), of
the requested issuance of such Letter of Credit (a "Letter of Credit Request").
Such notice shall be irrevocable and shall specify the Issuer of such Letter of
Credit, the stated amount of the Letter of

                                       35

<PAGE>   41
Credit requested, which stated amount (or, if such Letter of Credit is to be
denominated in an Alternate Currency, the Dollar Equivalent of such stated
amount) shall not be less than $500,000, the date of issuance of such requested
Letter of Credit (which day shall be a Business Day), the date on which such
Letter of Credit is to expire (which date shall be a Business Day), and the
Person for whose benefit the requested Letter of Credit is to be issued. Such
notice, to be effective, must be received by the relevant Issuer and the
Administrative Agent not later than 11:00 a.m. (New York City time) on the
second Business Day prior to the requested issuance of such Letter of Credit.

         (d)  Subject to the satisfaction of the conditions set forth in this
Section 2.4, the relevant Issuer shall, on the requested date, issue a Letter of
Credit on behalf of the Borrowers in accordance with such Issuer's usual and
customary business practices. No Issuer shall issue any Letter of Credit in the
period commencing on the first Business Day after it receives written notice
from any Lender that one or more of the conditions precedent contained in
Section 3.2 shall not on such date be satisfied, and ending when such conditions
are satisfied. The relevant Issuer shall not otherwise be required to determine
that, or take notice whether, the conditions precedent set forth in Section 3.2
have been satisfied in connection with the issuance of any Letter of Credit.

         (e)  If requested by the relevant Issuer, prior to the issuance of each
Letter of Credit by such Issuer, and as a condition of such issuance and of the
participation of each Revolving Credit Lender in the Letter of Credit
Obligations arising with respect thereto, the applicable Borrower shall have
delivered to such Issuer a letter of credit reimbursement agreement, in such
form as the Issuer may employ in its ordinary course of business for its own
account (a "Letter of Credit Reimbursement Agreement"), signed by such Borrower,
and such other documents or items as may be required pursuant to the terms
thereof. In the event of any conflict between the terms of any Letter of Credit
Reimbursement Agreement and this Agreement, the terms of this Agreement shall
govern.

         (f)  Each Issuer shall:

              (i)    give the Administrative Agent written notice (or telephonic
    notice confirmed promptly thereafter in writing, which may be by telecopier)
    of the issuance or renewal of a Letter of Credit issued by it, of all
    drawings under a Letter of Credit issued by it and the payment (or the
    failure to pay when due) by the applicable Borrower of any Reimbursement
    Obligation when due (which notice the Administrative Agent shall promptly
    transmit by telecopy or similar transmission to each Revolving Credit
    Lender);

              (ii)   upon the request of any Revolving Credit Lender, furnish to
    such Revolving Credit Lender copies of any Letter of Credit Reimbursement
    Agreement to which such Issuer is a party and such other documentation as
    may reasonably be requested by such Revolving Credit Lender; and

              (iii)  no later than 10 Business Days following the last day of
    each calendar month, provide to the Administrative Agent (and the
    Administrative Agent shall provide a copy to each Revolving Credit Lender
    requesting the same) and the Borrowers separate schedules for documentary
    and standby letters of credit issued by it, in form and substance reasonably
    satisfactory to the Administrative Agent, setting forth the aggregate Letter
    of Credit Obligations outstanding at the end of each month and any
    information requested by the Borrowers or the Administrative Agent relating
    thereto.

         (g)  Immediately upon the issuance by an Issuer of a Letter of Credit
in accordance with the terms and conditions of this Agreement, such Issuer shall
be deemed to have sold and transferred to each Revolving Credit Lender (or to
each Canadian Lender in the case of Letters of Credit issued for the account of
a Canadian Borrower), and such Revolving Credit Lender shall be deemed
irrevocably and unconditionally to have purchased and received from such Issuer,
without recourse or warranty, an undivided interest and participation, to the
extent of such Revolving Credit Lender's Ratable Portion (or

                                       36
<PAGE>   42

Canadian Ratable Portion, in the case of Letters of Credit issued for the
account of a Canadian Borrower) of the Revolving Credit Commitments, in such
Letter of Credit and the obligations of the Borrowers with respect thereto
(including all Letter of Credit Obligations with respect thereto) and any
security therefor and guaranty pertaining thereto.

         (h)  Each Borrower agrees to pay to the Issuer of any Letter of Credit
the amount of all Reimbursement Obligations owing to such Issuer under any
Letter of Credit issued for its account when such amounts are due and payable,
irrespective of any claim, set-off, defense or other right which such Borrower
may have at any time against such Issuer or any other Person. In the event that
any Issuer makes any payment under any Letter of Credit and the Borrower for
whose account such Letter of Credit was issued shall not have repaid such amount
to such Issuer pursuant to this clause (h) or such payment is rescinded or set
aside for any reason, such Reimbursement Obligation shall be payable on demand
with interest thereon computed from the date on which such Reimbursement
Obligation arose to the date of repayment in full at the rate of interest
applicable to past due Revolving Loans bearing interest at a rate based on the
Base Rate during such period, and such Issuer shall promptly notify the
Administrative Agent, which shall promptly notify each Revolving Credit Lender
(or each Canadian Lender in the case of Letters of Credit issued for the account
of a Canadian Borrower) of such failure, and each Revolving Credit Lender (or
Canadian Lender) shall promptly and unconditionally pay to the Administrative
Agent for the account of such Issuer the amount of such Revolving Credit
Lender's Ratable Portion (or such Canadian Lender's Canadian Ratable Portion) of
such payment in the applicable Currency and in immediately available funds. If
the Administrative Agent so notifies such Revolving Credit Lender prior to 11:00
a.m. (New York City time) on any Business Day, such Revolving Credit Lender
shall make available to the Administrative Agent for the account of such Issuer
its Ratable Portion or Canadian Ratable Portion, as applicable, of the amount of
such payment on such Business Day in immediately available funds. Upon such
payment by a Revolving Credit Lender, such Revolving Credit Lender shall, except
during the continuance of a Default or Event of Default under Section 7.1(h) and
notwithstanding whether or not the conditions precedent set forth in Section 3.2
or 3.3, as applicable, shall have been satisfied (which conditions precedent the
Revolving Credit Lenders hereby irrevocably waive) be deemed to have made a
Revolving Loan to the applicable Borrower in the principal amount of such
payment. Whenever any Issuer receives from a Borrower a payment of a
Reimbursement Obligation as to which the Administrative Agent has received for
the account of such Issuer any payment from a Revolving Credit Lender pursuant
to this clause (h) above, such Issuer shall pay to the Administrative Agent and
the Administrative Agent shall promptly pay to each Revolving Credit Lender or
Canadian Lender, as applicable, in immediately available funds, an amount equal
to such Revolving Credit Lender's Ratable Portion (or such Canadian Lender's
Canadian Ratable Portion) of the amount of such payment adjusted, if necessary,
to reflect the respective amounts such Revolving Credit Lenders (or Canadian
Lenders) have paid in respect of such Reimbursement Obligation.

         (i)  The Borrowers' obligation to pay each Reimbursement Obligation
with respect to Letters of Credit and the obligations of the Revolving Credit
Lenders to make payments to the Administrative Agent for the account of the
Issuers with respect to Letters of Credit shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Agreement, under any and all circumstances whatsoever, including the
occurrence of any Default or Event of Default, and irrespective of:

              (i)    any lack of validity or enforceability of any Letter of
    Credit or any Loan Document, or any term or provision therein;

              (ii)   any amendment or waiver of or any consent to departure from
    all or any of the provisions of any Letter of Credit or any Loan Document;

              (iii)  the existence of any claim, set off, defense or other right
    that the Borrowers, any other party guaranteeing, or otherwise obligated
    with, the Borrowers, any Subsidiary or other Affiliate thereof or any other
    Person may at any time have against the

                                       37
<PAGE>   43

    beneficiary under any Letter of Credit, Issuer, the Administrative Agent or
    any Lender or any other Person, whether in connection with this Agreement,
    any other Loan Document or any other related or unrelated agreement or
    transaction;

              (iv)   any draft or other document presented under a Letter of
    Credit proving to be forged, fraudulent, invalid or insufficient in any
    respect or any statement therein being untrue or inaccurate in any respect;

              (v)    payment by the Issuer under a Letter of Credit against
    presentation of a draft or other document that does not comply with the
    terms of such Letter of Credit; and

              (vi)   any other act or omission to act or delay of any kind of
    the Issuer, the Lenders, the Administrative Agent or any other Person or any
    other event or circumstance whatsoever, whether or not similar to any of the
    foregoing, that might, but for the provisions of this Section, constitute a
    legal or equitable discharge of the Borrowers' obligations hereunder.

Any action taken or omitted to be taken by the relevant Issuer under or in
connection with any Letter of Credit, if taken or omitted in the absence of
gross negligence or willful misconduct, shall not put such Issuer under any
resulting liability to the Borrowers or any Revolving Credit Lender. In
determining whether drafts and other documents presented under a Letter of
Credit comply with the terms thereof, the Issuer may accept documents that
appear on their face to be in order, without responsibility for further
investigation, regardless of any notice or information to the contrary and, in
making any payment under any Letter of Credit (x) the Issuer may rely
exclusively on the documents presented to it under such Letter of Credit as to
any and all matters set forth therein, including reliance on the amount of any
draft presented under such Letter of Credit, whether or not the amount due to
the beneficiary thereunder equals the amount of such draft and whether or not
any document presented pursuant to such Letter of Credit proves to be
insufficient in any respect, if such document on its face appears to be in
order, and whether or not any other statement or any other document presented
pursuant to such Letter of Credit proves to be forged or invalid or any
statement therein proves to be inaccurate or untrue in any respect whatsoever
and any noncompliance in any immaterial respect of the documents presented under
such Letter of Credit with the terms thereof shall, in each case, be deemed not
to constitute willful misconduct or gross negligence of the Issuer.

         (j)  If and to the extent such Revolving Credit Lender shall not have
so made its Ratable Portion or Canadian Ratable Portion, as applicable, of the
amount of the payment required by clause (i) above available to the
Administrative Agent for the account of such Issuer, such Revolving Credit
Lender agrees to pay to the Administrative Agent for the account of such Issuer
forthwith on demand such amount together with interest thereon, for the first
Business Day after payment was first due at the Interbank Rate, and thereafter
until such amount is repaid to the Administrative Agent for the account of such
Issuer, at the rate per annum applicable to Base Rate Loans. The failure of any
Revolving Credit Lender to make available to the Administrative Agent for the
account of such Issuer its Ratable Portion or Canadian Ratable Portion in the
case of Letters of Credit in an Alternate Currency of any such payment shall not
relieve any other Revolving Credit Lender of its obligation hereunder to make
available to the Administrative Agent for the account of such Issuer its Ratable
Portion or Canadian Ratable Portion, as applicable, of any payment on the date
such payment is to be made, but no Revolving Credit Lender shall be responsible
for the failure of any other Revolving Credit Lender to make available to the
Administrative Agent for the account of the Issuer such other Revolving Credit
Lender's Ratable Portion or Canadian Ratable Portion, as applicable, of any such
payment.

         SECTION 2.5. BANKERS' ACCEPTANCES.

         (a)  Subject to the terms and conditions hereof, upon giving to the
Administrative Agent prior written notice in accordance with this Section 2.5,
on any Business Day, a Canadian Borrower may borrow from the Canadian Lenders by
way of Acceptances, provided, however, that:

                                       38
<PAGE>   44

              (i)    each Canadian Lender shall have received a Bankers'
    Acceptance or Bankers' Acceptances in the aggregate principal amount of such
    borrowing from such Canadian Lender in due and proper form duly completed
    and executed by such Canadian Borrower and presented for acceptance to such
    Canadian Lender prior to 10:00 a.m. (Toronto time) on the date for such
    borrowing, together with such other document or documents as such Canadian
    Lender may reasonably require (including the execution by such Canadian
    Borrower of such Canadian Lender's usual form of bankers' acceptances) and
    the Acceptance Fee shall have been paid to such Canadian Lender at or prior
    to such time;

              (ii)   each Bankers' Acceptance shall be stated to mature on a
    Business Day, no later than the Revolving Credit Termination Date, which is
    30, 60 or 90 days from the date of its acceptance;

              (iii)  each Bankers' Acceptance shall have a face amount of not
    less than CAD100,000 and shall be in form satisfactory to such Canadian
    Lender;

              (iv)   each Bankers' Acceptance shall be stated to mature on a
    Business Day in such a way that no Canadian Lender will be required to incur
    any costs for the redeployment of funds as a consequence of any repayment
    required during any period for which such Bankers' Acceptance is
    outstanding;

              (v)    no days of grace shall be permitted on any Bankers'
    Acceptance;

              (vi)   the aggregate face amount of the Bankers' Acceptances to be
    accepted by a Canadian Lender shall be determined by the Administrative
    Agent by reference to the respective relevant Revolving Credit Commitments
    of the Canadian Lenders, except that, if the face amount of a Bankers'
    Acceptance which would otherwise be accepted by a Canadian Lender would not
    be $100,000 or a whole multiple thereof, such face amount shall be increased
    or reduced by the Administrative Agent in its sole discretion to $100,000 or
    the nearest whole multiple of that amount, as appropriate; and

              (vii)  after giving affect to the issuance of each Acceptance, (A)
    the aggregate Revolving Credit Outstandings owing to any Canadian Lender
    would not exceed such Canadian Lender's Revolving Credit Commitment in
    effect at such time or (B) the aggregate Revolving Credit Outstandings owing
    to all of the Lenders would not exceed the Revolving Credit Commitments in
    effect at such time.

         (b)  Each Canadian Borrower acknowledges, agrees and confirms that each
Canadian Lender may at any time and from time to time hold, sell, rediscount or
otherwise dispose of any Acceptance accepted and purchased by it hereunder, that
the records of such Canadian Lender in respect of payment of any Bankers'
Acceptance by such Canadian Lender shall be binding on such Canadian Borrower
and shall be conclusive evidence (in the absence of manifest error) of a BA Rate
Loan to such Canadian Borrower and of an amount owing by the Borrowing
Subsidiary to such Lender.

         (c)  In the event a Canadian Lender is unable or, in its sole
discretion, shall have determined that by reason of circumstances arising after
the Effective Date and affecting the market for Bankers' Acceptances, that it is
unwilling, to accept Bankers' Acceptances, such Canadian Lender shall have the
right at the time of accepting drafts to require the Canadian Borrower
requesting such Bankers' Acceptance to accept a Revolving Loan from such
Canadian Lender in lieu of the issue and acceptance of a Bankers' Acceptance
requested by the Borrowing Subsidiary (a "BA Equivalent Loan") to be accepted so
that there shall be outstanding while the Bankers' Acceptances are outstanding
BA Equivalent Loans from such Canadian Lender as contemplated herein. The
principal amount of each BA Equivalent Loan shall be that amount which, when
added to the amount of interest (calculated at the applicable Discount Rate)
which will accrue during the applicable BA Interest Period, equals, at maturity,
to the face amount

                                       39
<PAGE>   45

of the drafts which would have been accepted by such Canadian Lender had it
accepted Bankers' Acceptances. On the relevant date of the borrowing the
Canadian Borrower requesting such Acceptance shall pay to the Administrative
Agent a fee equal to the Acceptance Fee which would have been payable to such
Canadian Lender if it were a Canadian Lender accepting drafts having a term to
maturity equal to the applicable BA Interest Period and an aggregate face amount
equal to the sum of the principal amount of the BA Equivalent Loan and the
interest payable thereon by such Canadian Borrower for the applicable BA
Interest Period. The provisions of this Agreement dealing with Bankers'
Acceptances shall apply, mutatis mutandis, to BA Equivalent Loans.

         (d)  Each Bankers' Acceptance issued pursuant to this Agreement shall
be purchased by the Canadian Lender accepting such Bankers' Acceptance for the
Discounted Proceeds thereof. Concurrent with the acceptance of each Bankers'
Acceptance, such Canadian Lender shall make available to the Administrative
Agent the Discounted Proceeds thereof for disbursement to the applicable
Canadian Borrower in accordance with the terms hereof. On any date on which both
new Bankers' Acceptances are being purchased and existing Bankers' Acceptances
are maturing, the applicable Canadian Borrower hereby authorizes the applicable
Canadian Lender and the Administrative Agent to net all amounts payable on such
date by such Canadian Lender to the Administrative Agent for the account of such
Canadian Borrower, against all amounts payable on such date by such Canadian
Borrower to such Canadian Lender in accordance with the Administrative Agent's
calculations. In each case, upon receipt of such Discounted Proceeds from such
Lender and upon fulfillment of the applicable conditions set forth herein, the
Administrative Agent shall make such funds available to the relevant Canadian
Borrower in accordance with this Agreement. Upon each issue of Bankers'
Acceptances as a result of the conversion of outstanding Base Rate Loans into
Bankers' Acceptances, each Canadian Borrower requesting such conversion shall,
concurrently with the conversion, pay in advance to the Administrative Agent on
behalf of the Canadian Lenders, the amount by which the face value of such
Bankers' Acceptances exceeds the Discounted Proceeds of such Bankers'
Acceptances, to be applied against the principal amount of the Base Rate Loans
being so converted. Such Canadian Borrower shall at the same time pay to the
Administrative Agent the applicable Acceptance Fee.

         (e)  To enable the Lenders to make Canadian Revolving Credit
Outstandings in the manner specified in this Section 2.5, each Canadian Borrower
shall, in accordance with the request of each Canadian Lender either (i) provide
a power of attorney to complete, sign, endorse and issue Bankers' Acceptances,
in such form as such Canadian Lender may require; or (ii) supply such Canadian
Lender with such number of drafts as such Canadian Lender may reasonably
request, duly endorsed and executed on behalf of such Canadian Borrower. Each
Canadian Lender shall exercise such care in the custody and safekeeping of
drafts as it would exercise in the custody and safekeeping of similar property
owned by it. Each Canadian Lender will, upon request by a Canadian Borrower,
promptly advise such Subsidiary of the number and designations, if any, of the
uncompleted drafts then held by it.

         (f)  Each Canadian Borrower agrees to pay to each Canadian Lender on
the maturity date of each Bankers' Acceptance issued by it, an amount equal to
the face amount of all Bankers' Acceptances accepted by such Canadian Lender
maturing on that day (notwithstanding that a Canadian Lender may be the holder
thereof at maturity) and all reasonable expenses paid or incurred by such
Canadian Lender, relative thereto. Unless such Canadian Borrower shall have made
such payment to the Canadian Lenders, on such day and upon each such maturity
date of each Bankers' Acceptance, the Administrative Agent shall be deemed to
have disbursed to the such Borrower, and such Borrower shall be deemed to have
elected to satisfy its reimbursement and payment obligation by, a Revolving
Credit Borrowing from the Canadian Lenders in Canadian Dollars bearing interest
at the Base Rate for the account of the Canadian Lenders in an amount equal to
the amount so paid by such Canadian Lender, in the face value of such Bankers'
Acceptance then maturing. Such Revolving Credit Borrowing shall be disbursed
notwithstanding any failure to satisfy any conditions for disbursement of any
Loan set forth in Section 3.2 and, to the extent of the Revolving Credit
Borrowing so disbursed, the reimbursement and payment obligation of the Company
under this Section 2.5(f) shall be deemed satisfied; provided,

                                       40
<PAGE>   46

however, that nothing in this Section 2.5 shall be deemed to constitute a waiver
of any Default or Event of Default caused by the failure to the conditions for
disbursement or otherwise.

         (g)  The reimbursement and other payment obligations of the Canadian
Borrowers under this Section 2.5 shall be absolute, unconditional and
irrevocable and shall remain in full force and effect until all obligations of
the Borrowers to the Lenders hereunder shall have been satisfied, and such
obligations of the Canadian Borrowers shall not be affected, modified or
impaired upon the happening of any event, including any of the following,
whether or not with notice to, or the consent of, any Borrower:

              (i)    Any lack of validity or enforceability of any Acceptance or
    to any transaction related in any way thereto (such Acceptance and any
    documents evidencing such transaction, the "BA Documents");

              (ii)   Any amendment, modification, waiver, consent, or any
    substitution, exchange or release of or failure to perfect any interest in
    collateral or security, with respect to any of the BA Documents;

              (iii)  The existence of any claim, setoff, defense or other right
    which the Company or any of its Subsidiaries may have at any time against
    any beneficiary or any transferee of any Acceptance (or any Persons or
    entities for whom any such beneficiary, transferee or holder may be acting),
    the Administrative Agent, any Canadian Lender or any other Person or entity,
    whether in connection with any of the BA Documents, the transactions
    contemplated herein or therein or any unrelated transactions;

              (iv)   Any draft or other statement or document presented under
    any Acceptance proving to be forged, fraudulent, invalid or insufficient in
    any respect or any statement therein being untrue or inaccurate in any
    respect;

              (v)    Any failure, omission, delay or lack on the part of the
    Administrative Agent, any Canadian Lender or any party to any of the BA
    Documents to enforce, assert or exercise any right, power or remedy
    conferred upon the Administrative Agent, any Canadian Lender or any such
    party under this Agreement or any of the BA Documents, or any other acts or
    omissions on the part of the Administrative Agent, any Canadian Lender or
    any such party;

              (vi)   Any defense based on the lack of presentment for payment
    and any other defense to payment of any amounts due to a Canadian Lender in
    respect of any Acceptance accepted by it pursuant to this Agreement which
    might exist solely by reason of such Acceptance being held, at the maturity
    thereof, by such Canadian Lender in its own right; and

              (vii)  Any other event or circumstance that would, in the absence
    of this clause, result in the release or discharge by operation of law or
    otherwise of the Company from the performance or observance of any
    obligation, covenant or agreement contained in this Section 2.5.

         (h)  No setoff, counterclaim, reduction or diminution of any obligation
or any defense of any kind or nature which any Borrower has or may have against
the beneficiary or holder of any Acceptance shall be available hereunder to any
Borrower against the Administrative Agent or any Canadian Lender.

         SECTION 2.6. REDUCTION AND TERMINATION OF THE REVOLVING CREDIT
                      COMMITMENTS.

         (a)  The Borrowers may, upon at least three Business Days' prior notice
to the Administrative Agent, terminate in whole or reduce in part ratably the
unused portions of the respective Revolving Credit Commitments of the Revolving
Credit Lenders; provided, however, that each partial

                                       41
<PAGE>   47

reduction shall be in the aggregate amount of not less than $5,000,000 or an
integral multiple of $1,000,000 in excess thereof.

         (b)  The then current Revolving Credit Commitments shall be reduced on
each date on which a prepayment of Revolving Loans or Swing Loans is made
pursuant to Section 2.10(a) or would be required to be made had the outstanding
Revolving Loans and Swing Loans equaled the Revolving Credit Commitments then in
effect, in each case in the amount of fifty percent (50%) of such prepayment (or
deemed prepayment) (and the Revolving Credit Commitment of each Lender shall be
reduced by its Ratable Portion of such amount); provided, however, that the
requirements of this Section 2.6(b) shall not apply to the Asset Sale
consummated pursuant to Section 6.5(vi).

         SECTION 2.7. REPAYMENT OF LOANS.

         (a)  The Borrowers promise to repay the entire unpaid principal amount
of the Revolving Loans on the Scheduled Termination Date.

         (b)  The Borrowers promises to repay the Term Loans at the dates and in
the amounts set forth below:

<TABLE>
<CAPTION>

                        DATE                                AMOUNT

<S>                                                     <C>
                  June 30, 2001                         $1,500,000

                  September 30, 2001                    $1,500,000

                  December 31, 2001                     $1,500,000

                  March 31, 2002                        $1,500,000

                  June 30, 2002                         $2,500,000

                  September 30, 2002                    $2,500,000

                  December 31, 2002                     $2,500,000

                  March 31, 2003                        $2,500,000

                  June 30, 2003                         $3,500,000

                  September 30, 2003                    $3,500,000

                  December 31, 2003                     $3,500,000

                  March 31, 2004                        $3,500,000

                  June 30, 2004                         $4,000,000

                  September 30, 2004                    $4,000,000

                  December 31, 2004                     $4,000,000

                  March 31, 2005                        $4,000,000

                  Term Loan Maturity Date               $4,000,000;
</TABLE>

provided, however, that the Borrowers shall repay the entire unpaid principal
amount of the Term Loans (including any Term Loans funded on a Facilities
Increase Effective Date) on the Term Loan Maturity Date. In the event that
additional Term Loans are funded on any Facilities Increase Effective Date, the
amount opposite each installment date set forth above occurring after such
Facilities Increase Effective Date shall be increased by an amount equal to (i)
the amount of the Term Loans funded on such Facilities Increase Effective Date
divided by (ii) the number of scheduled installment dates remaining after such
Facilities Increase Effective Date.

                                       42
<PAGE>   48

         SECTION 2.8. EVIDENCE OF DEBT.

         (a) Each Lender shall maintain in accordance with its usual practice an
account or accounts evidencing Indebtedness of the Borrowers to such Lender
resulting from each Loan of such Lender from time to time, including the amounts
of principal and interest payable and paid to such Lender from time to time
under this Agreement.

         (b) The Administrative Agent shall maintain accounts in accordance with
its usual practice in which it will record (i) the amount of each Loan made and,
if a Eurocurrency Rate Loan, the Interest Period applicable thereto, (ii) the
amount of any principal or interest due and payable by the Borrowers to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder from the Borrowers and each Lender's share thereof, if
applicable.

         (c) The entries made in the accounts maintained pursuant to clauses (a)
and (b) of this Section 2.8 shall, to the extent permitted by applicable law, be
prima facie evidence of the existence and amounts of the obligations recorded
therein; provided, however, that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner
affect the obligations of the Borrowers to repay the Loans in accordance with
their terms.

         (d) Notwithstanding any other provision of the Agreement, in the event
that any Lender requests that the Borrowers execute and deliver a promissory
note or notes payable to such Lender in order to evidence the Indebtedness owing
to such Lender by the Borrowers hereunder (including any additional Term Loans
funded on a Facilities Increase Effective Date), the Borrowers will promptly
execute and deliver a Note or Notes to such Lender evidencing any Term Loans and
Revolving Loans, as the case may be, of such Lender, substantially in the forms
of Exhibit B-1 or B-2, respectively.

         SECTION 2.9. OPTIONAL PREPAYMENTS.

         (a) Revolving Loans. The Borrowers may, upon at least three Business
Days' prior notice to the Administrative Agent, stating the proposed date and
aggregate principal amount of the prepayment, prepay the outstanding principal
amount of the Revolving Loans in whole or in part; provided, however, that if
any prepayment of any Eurocurrency Rate Loan is made by the Borrowers other than
on the last day of an Interest Period for such Loan, the Borrowers shall also
pay any amounts owing pursuant to Section 2.16(b); and, provided, further, that
each partial prepayment shall be in an aggregate principal amount not less than
$5,000,000 or integral multiples of $1,000,000 in excess thereof. Upon the
giving of such notice of prepayment, the principal amount of Revolving Loans
specified to be prepaid shall become due and payable on the date specified for
such prepayment.

         (b) Term Loans. The Borrowers may, upon at least three Business Days'
prior notice to the Administrative Agent stating the proposed date and aggregate
principal amount of the prepayment, prepay the outstanding principal amount of
the Term Loans, in whole or in part, together with accrued interest to the date
of such prepayment on the principal amount prepaid; provided, however, that if
any prepayment of any Eurocurrency Rate Loan is made by the Borrowers other than
on the last day of an Interest Period for such Loan, the Borrowers shall also
pay any amounts owing pursuant to Section 2.16(b); and, provided, further, that
each partial prepayment shall be in an aggregate amount not less than $5,000,000
or integral multiples of $1,000,000 in excess thereof and that any such partial
prepayment shall be applied to reduce ratably the remaining installments of such
outstanding principal amount of the Term Loans. Upon the giving of such notice
of prepayment, the principal amount of the Term Loans specified to be prepaid
shall become due and payable on the date specified for such prepayment.

         (c) The Borrowers shall have no right to prepay the principal amount of
any Revolving Loan or any Term Loan other than as provided in this Section 2.9.

                                       43
<PAGE>   49

         SECTION 2.10. MANDATORY PREPAYMENTS.

         (a)  Upon receipt by the Company or any of its Restricted Subsidiaries
of Net Cash Proceeds arising from an Asset Sale, Property Loss Event or Debt
Issuance, the Borrowers shall immediately prepay the Loans (or provide cash
collateral in respect of Letters of Credit and Bankers' Acceptances) in an
amount equal to 100% of such Net Cash Proceeds; provided, however, that (i) only
Net Cash Proceeds in excess of $2,000,000 in any Fiscal Year shall be required
to prepay Loans pursuant to this Section 2.10(a), (ii) in the case of any Net
Cash Proceeds arising from a Reinvestment Event, the Borrowers shall prepay the
Loans (or provide cash collateral in respect of Letters of Credit and Bankers'
Acceptances) in an amount equal to the Reinvestment Prepayment Amount applicable
to such Reinvestment Event, if any, on the Reinvestment Prepayment Date with
respect to such Reinvestment Event and, pending application of such proceeds as
specified in the Reinvestment Notice, shall pay the same to the Administrative
Agent to be held in a Cash Collateral Account and (iii) only 50% of the Net Cash
Proceeds arising from a Debt Issuance shall be required to be applied as a
prepayment of the Loans (or as cash collateral in respect of Letter of Credit
and Bankers' Acceptances) if the Leverage Ratio as of the last day of the most
recent Fiscal Quarter for which Financial Statements have been delivered
pursuant to Section 5.4(b) is less than 3:00 to 1. Any such mandatory prepayment
shall be applied in accordance with Section 2.10(c) below.

         (b)  The Borrowers shall prepay the Term Loans within 90 days of the
last day of each Fiscal Year, in an amount equal to 75% of Excess Cash Flow for
such Fiscal Year (or, in the case of Fiscal Year 2001, the period beginning July
1, 2000 and ending on the last day of such Fiscal Year); provided, however, only
50% of such Excess Cash Flow should be required to be applied as a prepayment of
the Term Loans if the Leverage Ratio as of the last day of such Fiscal Year is
less than 3:00 to 1.

         (c)  Any prepayments made by the Borrowers pursuant to Section 2.10(a)
shall be applied as follows: first, to prepay the outstanding principal balance
of the Term Loans, until such Term Loans shall have been prepaid in full;
second, to repay the outstanding principal balance of the Swing Loans until such
Swing Loans shall have been repaid in full; third, to repay the outstanding
principal balance of the Revolving Loans until such Revolving Loans shall have
been paid in full; and then, to provide cash collateral for any Letter of Credit
Obligations and Bankers' Acceptances Obligations in the manner set forth in
Section 7.3 until all such Letter of Credit Obligations and Bankers' Acceptances
Obligations have been fully cash collateralized in the manner set forth therein.
All prepayments of the Term Loans made pursuant to this Section 2.10 shall be
applied to reduce ratably the remaining installments of the outstanding
principal amount of the Term Loans. All repayments of Revolving Loans and Swing
Loans required to be made pursuant to this Section 2.10 shall result in a
permanent reduction of the Revolving Credit Commitments to the extent provided
in Section 2.6(b). Payments received in respect of any Canadian Revolving Credit
Outstandings shall be distributed to each Canadian Lender in accordance with its
Canadian Ratable Portion.

         (d)  If at any time, the aggregate principal amount of Revolving Credit
Outstandings exceed the aggregate Revolving Credit Commitments at such time, the
Borrowers shall forthwith prepay the Swing Loans first and then the Revolving
Loans then outstanding in an amount equal to such excess. If any such excess
remains after repayment in full of the aggregate outstanding Swing Loans and
Revolving Loans, the Borrowers shall provide cash collateral for the Letter of
Credit Obligations and Bankers' Acceptances Obligations in the manner set forth
in Section 7.3 to the extent required to eliminate such excess.

         (e)  If at any time, the aggregate principal amount of Revolving Credit
Outstandings denominated in an Alternate Currency exceeds the applicable
Multicurrency Sublimit, the Borrowers shall forthwith prepay the Revolving Loans
denominated in such Alternate Currency then outstanding in an amount equal to
such excess.

                                       44
<PAGE>   50

         SECTION 2.11. INTEREST.

         (a)  Rate of Interest. All Loans and the outstanding amount of all
other Obligations shall bear interest, in the case of Loans, on the unpaid
principal amount thereof from the date such Loans are made and, in the case of
such other Obligations, from the date such other Obligations are due and payable
until, in all cases, paid in full, except as otherwise provided in Section
2.11(c), as follows:

              (i)     if a Base Rate Loan or such other Obligation, at a rate
    per annum equal to the sum of (A) the Base Rate as in effect from time to
    time plus (B) the Applicable Margin;

              (ii)    if a Eurocurrency Rate Loan, at a rate per annum equal to
    the sum of (A) the Eurocurrency Rate determined for the applicable Interest
    Period plus (B) the Applicable Margin in effect from time to time during
    such Eurocurrency Interest Period; and

              (iii)   if a BA Rate Loan, at a rate per annum equal to the sum of
    (A) the BA Rate as in effect from time to time plus (B) the Applicable
    Margin.

         (b)  Interest Payments. (i) Interest accrued on each Base Rate Loan
(other than Swing Loans) shall be payable in arrears (A) on the first day of
each calendar quarter, commencing on the first such day following the making of
such Base Rate Loan, (B) in the case of Base Rate Loans that are Term Loans,
upon the payment or prepayment thereof in full or in part, and (C) if not
previously paid in full, at maturity (whether by acceleration or otherwise) of
such Base Rate Loan; (ii) interest accrued on Swing Loans shall be payable in
arrears on the first day of the immediately succeeding calendar quarter; (iii)
interest accrued on each Eurocurrency Rate Loan shall be payable in arrears (A)
on the last day of each Interest Period applicable to such Loan and if such
Interest Period has a duration of more than three months, on each day during
such Interest Period which occurs every three months from the first day of such
Interest Period, (B) upon the payment or prepayment thereof in full or in part,
and (C) if not previously paid in full, at maturity (whether by acceleration or
otherwise) of such Eurocurrency Rate Loan; and (iv) interest accrued on the
amount of all other Obligations shall be payable on demand from and after the
time such Obligation becomes due and payable (whether by acceleration or
otherwise).

         (c)  Default Interest. Notwithstanding the rates of interest specified
in Section 2.11(a) or elsewhere herein, effective immediately upon the
occurrence of an Event of Default, and for as long thereafter as such Event of
Default shall be continuing, the principal balance of all Loans and BA Rate
Loans and the amount of all other Obligations shall bear interest at a rate
which is two percent per annum in excess of the rate of interest applicable to
such Obligations from time to time.

         (d)  Canadian Revolving Credit Outstandings. For the purposes of the
Interest Act (Canada) and Canadian Revolving Credit Outstandings hereunder:

              (i)    whenever any interest or fee under this Agreement is
    calculated using a rate based on a year of 360 days or 365 days, such rate
    determined pursuant to such calculation, when expressed as an annual rate,
    is equivalent to (A) the applicable rate based on a year of 360 days or 365
    days, as the case may be, (B) multiplied by the actual number of days in the
    relevant calendar year, and (C) divided by 360 or 365 as the case may be;

              (ii)   the principle of deemed reinvestment of interest does not
    apply to any interest calculation under this Agreement; and

              (iii)  the rates of interest stipulated in this Agreement are
    intended to be nominal rates and not effective rates or yields.

                                       45
<PAGE>   51

         SECTION 2.12. CONVERSION/CONTINUATION OPTION.

         (a)  The Borrowers may elect (i) at any time to convert Base Rate Loans
(other than Swing Loans and Canadian Loans) or any portion thereof to
Eurocurrency Rate Loans, or (ii) at the end of any applicable Interest Period,
to convert Eurocurrency Rate Loans (other than any such Loans denominated in
Euros) or any portion thereof into Base Rate Loans or to continue such
Eurocurrency Rate Loans or any portion thereof for an additional Interest
Period; provided, however, that the aggregate amount of the Eurocurrency Loans
for each Interest Period must be in the amount of $5,000,000 or an integral
multiple of $1,000,000 in excess thereof, or, in the case of Multicurrency
Loans, in an aggregate amount equal to an integral multiple of 100,000 units in
the applicable Alternate Currency and (converted to the Dollar Equivalent
thereof) equal to or greater than $5,000,000. Each conversion or continuation
shall be allocated among the Loans of each Lender in accordance with its Ratable
Portion. Each such election shall be in substantially the form of Exhibit E
hereto (a "Notice of Conversion or Continuation") and shall be made by giving
the Administrative Agent at least three Business Days' prior written notice
specifying (A) the amount and type of Loan being converted or continued, (B) in
the case of a conversion to or a continuation of Eurocurrency Rate Loans, the
applicable Interest Period, and (C) in the case of a conversion, the date of
conversion (which date shall be a Business Day and, if a conversion from
Eurocurrency Rate Loans, shall also be the last day of the applicable Interest
Period).

         (b)  The Administrative Agent shall promptly notify each Lender of its
receipt of a Notice of Conversion or Continuation and of the options selected
therein. Notwithstanding the foregoing, no conversion in whole or in part of
Base Rate Loans to Eurocurrency Rate Loans, and no continuation in whole or in
part of Eurocurrency Rate Loans upon the expiration of any applicable Interest
Period, shall be permitted at any time at which (i) a Default or an Event of
Default shall have occurred and be continuing or (ii) the continuation of, or
conversion into, would violate any of the provisions of Section 2.15. If, within
the time period required under the terms of this Section 2.12, the
Administrative Agent does not receive a Notice of Conversion or Continuation
from the Borrowers containing a permitted election to continue any Eurocurrency
Rate Loans for an additional Interest Period or to convert any such Loans, then,
upon the expiration of the applicable Interest Period, such Loans will be
automatically converted to Base Rate Loans or, in the case of Eurocurrency Rate
Loans denominated in Euros, Eurocurrency Rate Loans with an Interest Period of
one month. Each Notice of Conversion or Continuation shall be irrevocable.

         SECTION 2.13. FEES.

         (a)  Unused Commitment Fee. The Borrowers agree to pay to each
Revolving Credit Lender a commitment fee on the average amount by which the
Revolving Credit Commitment of such Lender exceeds such Lender's Ratable Portion
of the Revolving Credit Outstandings less the amount of any outstanding Swing
Loans (the "Unused Commitment Fee") from the date hereof until the Revolving
Credit Termination Date at the Applicable Unused Commitment Fee Rate, payable in
arrears (i) on the last day of each calendar quarter, commencing on the first
such day following the Effective Date, and (ii) on the Revolving Credit
Termination Date.

         (b)  Letter of Credit Fees. The Borrowers agree to pay the following
amounts with respect to Letters of Credit issued by any Issuer:

              (i)    to the Administrative Agent for the account of each Issuer
    of a Letter of Credit, with respect to each Letter of Credit issued by such
    Issuer, an issuance fee as agreed with each Issuer, payable in arrears (A)
    on the last day of each calendar quarter, commencing on the first such day
    following the issuance of such Letter of Credit, and (B) on the Revolving
    Credit Termination Date;

              (ii)   to the Administrative Agent for the ratable benefit of the
    Revolving Credit Lenders or, in the case of Letters of Credit issued for the
    account of a Canadian Borrower,

                                       46
<PAGE>   52
    the Canadian Lenders, with respect to each Letter of Credit, a fee accruing
    at the rate per annum equal to the Applicable Margin for Eurocurrency Rate
    Loans of the maximum amount available from time to time to be drawn under
    such Letter of Credit (in the case of a Letter of Credit denominated in an
    Alternate Currency other than Dollars, based on the Dollar Equivalent of the
    average undrawn amount thereof), payable in arrears on the last day of each
    calendar quarter, commencing on the first such day following the issuance of
    such Letter of Credit, and (ii) on the Revolving Credit Termination Date;
    provided, however, that during the continuance of an Event of Default, such
    fee shall be increased by two percent per annum and shall be payable on
    demand; and

              (iii)   to the Issuer of any Letter of Credit, with respect to the
    issuance, amendment or transfer of each Letter of Credit and each drawing
    made thereunder, documentary and processing charges in accordance with such
    Issuer's standard schedule for such charges in effect at the time of
    issuance, amendment, transfer or drawing, as the case may be.

         (c)  Additional Fees. The Borrowers has agreed to pay to Citicorp and
to the Arranger additional fees, the amount and dates of payment of which are
embodied in the Fee Letter.

         SECTION 2.14. PAYMENTS AND COMPUTATIONS.

         (a)  The Borrowers shall make each payment hereunder (including fees
and expenses) not later than 11:00 a.m. (New York City time) on the day when
due, (i) with respect to Loans and Reimbursement Obligations denominated in
Dollars, in Dollars, and (ii) with respect to Multicurrency Loans or
Reimbursement Obligations denominated in an Alternate Currency, in the Alternate
Currency in which such Loan or the Letter of Credit or Bankers' Acceptance
giving rise to such Reimbursement Obligation was made to the Administrative
Agent at its address referred to in Section 9.8 in immediately available funds
without set-off or counterclaim. The Administrative Agent will promptly
thereafter cause to be distributed immediately available funds relating to the
payment of principal or interest or fees to the Lenders or the Canadian Lenders,
as applicable, in accordance with the application of payments set forth in
clauses (e) and (f) of this Section 2.14, as applicable, for the account of
their respective Applicable Lending Offices; provided, however, that amounts
payable pursuant to Section 2.15(c), 2.16 or 2.17 shall be paid only to the
affected Lender or Lenders and amounts payable with respect to Swing Loans shall
be paid only to the Swing Loan Lender. Payments received by the Administrative
Agent after 11:00 a.m. (New York City time) shall be deemed to be received on
the next Business Day.

         (b)  All computations of interest based on clause (a)(i) or (b)(i) of
the definition of "Base Rate" or "BA Rate" shall be made by the Administrative
Agent on the basis of a year of 365 or 366 days, as the case may be, and all
other computations of interest and of fees shall be made by the Administrative
Agent on the basis of a year of 360 days, in each case for the actual number of
days (including the first day but excluding the last day) occurring in the
period for which such interest and fees are payable. Each determination by the
Administrative Agent of an interest rate hereunder shall be conclusive and
binding for all purposes, absent manifest error.

         (c)  Whenever any payment hereunder shall be stated to be due on a day
other than a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such case be included in the
computation of payment of interest or fees, as the case may be; provided,
however, that if such extension would cause payment of interest on or principal
of any Eurocurrency Rate Loan to be made in the next calendar month, such
payment shall be made on the immediately preceding Business Day.

         (d)  Unless the Administrative Agent shall have received notice from a
Borrower to the Lenders prior to the date on which any payment is due hereunder
that such Borrower will not make such payment in full, the Administrative Agent
may assume that such Borrower has made such payment in full to the
Administrative Agent on such date and the Administrative Agent may, in reliance
upon such

                                       47
<PAGE>   53

assumption, cause to be distributed to each Lender on such due date an
amount equal to the amount then due such Lender. If and to the extent such
Borrower shall not have made such payment in full to the Administrative Agent,
each Lender shall repay to the Administrative Agent forthwith on demand such
amount distributed to such Lender together with interest thereon at the
Interbank Rate, for the first Business Day, and, thereafter, at the rate
applicable to Base Rate Loans, for each day from the date such amount is
distributed to such Lender until the date such Lender repays such amount to the
Administrative Agent.

         (e)  Subject to the provisions of clause (f) of this Section 2.14 (and
except as otherwise provided in Section 2.10), all payments and any other
amounts received by the Administrative Agent from or for the benefit of the
Borrowers shall be applied first, to pay principal of and interest on any
portion of the Loans which the Administrative Agent may have advanced pursuant
to the express provisions of this Agreement on behalf of any Lender, for which
such Administrative Agent has not then been reimbursed by such Lender or the
Borrowers; second, to pay all other Obligations then due and payable; and third,
as the Borrowers so designates. Payments in respect of Swing Loans received by
the Administrative Agent shall be distributed to the Swing Loan Lender; payments
in respect of Revolving Loans received by the Administrative Agent shall be
distributed to each Revolving Credit Lender in accordance with such Lender's
Ratable Portion or, in the case of Revolving Loans made to the Canadian
Borrowers, to each Canadian Lender in accordance with such Lender's Canadian
Ratable Portion; payments in respect of the Term Loans received by the
Administrative Agent shall be distributed to each Term Loan Lender in accordance
with such Lender's Ratable Portion of the Term Loans; and all payments of fees
and all other payments in respect of any other Obligation shall be allocated
among such of the Lenders and Issuers as are entitled thereto, and, if to the
Lenders, in proportion to their respective Ratable Portions, or Canadian Ratable
Portions, in the case of fees relating to Loans, Letters of Credit denominated
in Canadian Dollars and Bankers' Acceptances.

         (f)  Subject to the Mexican Intercreditor Agreement, after the
occurrence and during the continuance of an Event of Default, the Borrowers
hereby irrevocably waive the right to direct the application of any and all
payments in respect of the Obligations and any proceeds of Collateral, and agree
that the Administrative Agent may, and shall upon either (A) the written
direction of the Requisite Revolving Credit Lenders and the Requisite Term Loan
Lenders or (B) the acceleration of the Obligations pursuant to Section 7.2,
apply all payments in respect of any Obligations and all funds on deposit in the
Cash Collateral Accounts and all other proceeds of Collateral in the following
order, provided, that payments made in an Alternate Currency shall be applied
first to Obligations denominated in such Alternate Currency and that payments
received from the Canadian Borrowers shall be applied first to Obligations owing
by such Borrowers:

              (i)    first, to pay interest on and then principal of any portion
    of the Revolving Loans which the Administrative Agent may have advanced on
    behalf of any Lender for which the Administrative Agent has not then been
    reimbursed by such Lender or the Borrowers;

              (ii)   second, to pay interest on and then principal of any Swing
    Loan;

              (iii)  third, to pay Obligations in respect of any expense
    reimbursements or indemnities then due the Administrative Agent;

              (iv)   fourth, to pay Obligations in respect of any expense
    reimbursements or indemnities then due to the Lenders and the Issuers;

              (v)    fifth, to pay Obligations in respect of any fees then due
    to the Administrative Agent, the Lenders and the Issuers;

              (vi)   sixth, to pay interest then due and payable in respect of
    the Loans, Reimbursement Obligations and Bankers' Acceptance Reimbursement
    Obligations;

                                       48
<PAGE>   54

              (vii)  seventh, to pay or prepay principal payments on the Loans,
    and Reimbursement Obligations and to provide cash collateral for outstanding
    Letter of Credit Undrawn Amounts and unmatured Bankers' Acceptances in the
    manner described in Section 7.3, ratably to the aggregate principal amount
    of such Loans, Reimbursement Obligations, Letter of Credit Undrawn Amounts,
    and unmatured Bankers' Acceptances and Obligations owing with respect to
    Hedging Contracts; and

              (viii) eighth, to the ratable payment of all other Obligations;

provided, however, that if sufficient funds are not available to fund all
payments to be made in respect of any of the Obligations described in any of the
foregoing clauses first through eighth, the available funds being applied with
respect to any such Obligation (unless otherwise specified in such clause) shall
be allocated to the payment of such Obligations ratably, based on the proportion
of the Administrative Agent's and each Lender's or Issuer's interest in the
aggregate outstanding Obligations described in such clauses; provided further,
however, in the event any Non-Canadian Lender's Ratable Portion of the
Obligations allocable to the Revolving Credit Outstandings referred to in clause
(vi) or (vii) above is less than its interest in the aggregate outstanding
Revolving Credit Outstandings described in such clauses, then the Administrative
Agent shall apply the available funds with respect to any such Revolving Credit
Outstandings first to the Canadian Lenders in accordance with their respective
Canadian Ratable Portions until each Revolving Credit Lender's remaining
interest in such Revolving Credit Outstandings is equal to such Revolving Credit
Lender's Ratable Portion of such Revolving Credit Outstandings (it being
understood and agreed that such reallocation of amounts shall not affect in any
way the amount of available funds that are applied to the Obligations owing to
the Term Loan Lenders in respect of the Term Loans). Notwithstanding the
foregoing proviso, in the event any Non-Canadian Lender's Ratable Portion of the
Revolving Credit Outstandings is less than its interest in the aggregate
outstanding Revolving Credit Outstandings after giving effect to the application
of any proceeds of Collateral from the Canadian Borrowers, the Administrative
Agent may, and shall at the request of any Non-Canadian Lender, require each
Canadian Lender (and each Canadian Lender hereby agrees) to purchase, without
recourse or warranty, an undivided interest and participation in the outstanding
Revolving Credit Outstandings owing to the Non-Canadian Lenders so that, after
giving effect to such purchases, each Revolving Credit Lender's interest in the
Revolving Loan Outstandings is equal to such Revolving Credit Lender's Ratable
Portion of such Revolving Credit Outstandings at the time of such purchase. The
order of priority set forth in clauses first through eighth of this Section
2.14(f) may at any time and from time to time be changed by the agreement of the
Requisite Revolving Lenders and the Requisite Term Loan Lenders without
necessity of notice to or consent of or approval by the Borrowers, any Secured
Party that is not a Lender or Issuing Bank, or any other Person. The order of
priority set forth in clauses first through fifth of this Section 2.14(f) may be
changed only with the prior written consent of the Administrative Agent in
addition to the Requisite Revolving Credit Lenders and the Requisite Term Loan
Lenders.

         (g)  At the option of the Administrative Agent, principal on the Swing
Loans, Reimbursement Obligations, Bankers' Acceptance Obligations, interest,
fees, expenses and other sums due and payable in respect of the Revolving Loans
and Protective Advances may be paid from the proceeds of Swing Loans or
Revolving Loans; provided however, that such sums due and payable in respect of
Revolving Loans and Protective Advances denominated in Canadian Dollars shall
only be payable from the proceeds of Canadian Loans. The Borrowers hereby
authorizes the Swing Loan Lender to make Swing Loans pursuant to Section 2.3(a)
and the Revolving Credit Lenders to make Revolving Loans and the Canadian
Lenders to make Canadian Loans pursuant to Section 2.2(a), from time to time in
such Swing Loan Lender's, or such Revolving Credit Lender's discretion, which
are in the amounts of any and all principal payable with respect to the Swing
Loans and interest, fees, expenses and other sums payable in respect of the
Revolving Loans, and further authorizes the Administrative Agent to give the
Revolving Credit Lenders notice of any Borrowing with respect to such Swing
Loans and Revolving Loans and to distribute the proceeds of such Swing Loans and
Revolving Loans to pay such amounts. The Borrowers agree that all such Swing
Loans and Revolving Loans so made shall be deemed to have been requested by them
(irrespective of the satisfaction of the conditions in Section 3.2, which
conditions

                                       49
<PAGE>   55

the Revolving Credit Lenders irrevocably waive) and directs that all proceeds
thereof shall be used to pay such amounts.

         (h)  The Borrowers hereby authorize each Lender and each Affiliate of
each Lender, if and to the extent payment owed to such Lender by the Borrowers
is not made when due hereunder, to charge from time to time against any or all
of the Borrowers' accounts with such Lender or Affiliate any amount so due.

         SECTION 2.15. SPECIAL PROVISIONS GOVERNING EUROCURRENCY RATE LOANS.

         (a)  Determination of Interest Rate. The Eurocurrency Rate for each
Interest Period for Eurocurrency Rate Loans shall be determined by the
Administrative Agent pursuant to the procedures set forth in the definition of
"Eurocurrency Rate." The Administrative Agent's determination shall be presumed
to be correct, absent manifest error, and shall be binding on the Borrowers.

         (b)  Interest Rate Unascertainable, Inadequate or Unfair. In the event
that: (i) the Administrative Agent determines that adequate and fair means do
not exist for ascertaining the applicable interest rates by reference to which
the Eurocurrency Rate then being determined is to be fixed; or (ii) the
Requisite Lenders notify the Administrative Agent that the Eurocurrency Rate for
any Interest Period will not adequately reflect the cost to the Lenders of
making or maintaining such Loans for such Interest Period, the Administrative
Agent shall forthwith so notify the Borrowers and the Lenders, whereupon each
Eurocurrency Loan will automatically, on the last day of the current Interest
Period for such Loan, convert into a Base Rate Loan and the obligations of the
Lenders to make Eurocurrency Rate Loans or to convert Base Rate Loans into
Eurocurrency Rate Loans shall be suspended until the Administrative Agent shall
notify the Borrowers that the Requisite Lenders have determined that the
circumstances causing such suspension no longer exist.

         (c)  Increased Costs. If at any time any Lender shall determine that
the introduction of or any change in or in the interpretation of any law, treaty
or governmental rule, regulation or order (other than any change by way of
imposition or increase of reserve requirements included in determining the
Eurocurrency Rate) or the compliance by such Lender with any guideline, request
or directive from any central bank or other Governmental Authority (whether or
not having the force of law), there shall be any increase in the cost to such
Lender of agreeing to make or making, funding or maintaining any Eurocurrency
Rate Loans, then the Borrowers shall from time to time, upon demand by such
Lender (with a copy of such demand to the Administrative Agent), pay to the
Administrative Agent for the account of such Lender additional amounts
sufficient to compensate such Lender for such increased cost. A certificate as
to the amount of such increased cost, submitted to the Borrowers and the
Administrative Agent by such Lender, shall be conclusive and binding for all
purposes, absent manifest error.

         (d)  Illegality. Notwithstanding any other provision of this Agreement,
if any Lender determines that the introduction of or any change in or in the
interpretation of any law, treaty or governmental rule, regulation or order
after the date of this Agreement shall make it unlawful, or any central bank or
other Governmental Authority shall assert that it is unlawful, for any Lender or
its Eurocurrency Lending Office to make Eurocurrency Rate Loans or to continue
to fund or maintain Eurocurrency Rate Loans, then, on notice thereof and demand
therefor by such Lender to the Borrowers through the Administrative Agent, (i)
the obligation of such Lender to make or to continue Eurocurrency Rate Loans and
to convert Base Rate Loans into Eurocurrency Rate Loans shall be suspended, and
each such Lender shall make a Base Rate Loan as part of any requested Borrowing
of Eurocurrency Rate Loans and (ii) if the affected Eurocurrency Rate Loans are
then outstanding, the Borrowers shall immediately convert each such Loan into a
Base Rate Loan. If at any time after a Lender gives notice under this Section
2.15(d) such Lender determines that it may lawfully make Eurocurrency Rate
Loans, such Lender shall promptly give notice of that determination to the
Borrowers and the Administrative Agent, and the Administrative Agent shall
promptly transmit the notice to each other Lender. The

                                       50
<PAGE>   56

Borrowers' right to request, and such Lender's obligation, if any, to make
Eurocurrency Rate Loans shall thereupon be restored.

         SECTION 2.16. CAPITAL ADEQUACY AND BREAKAGE COSTS.

         (a)  Capital Adequacy. If at any time any Lender determines that (a)
the adoption of or any change in or in the interpretation of any law, treaty or
governmental rule, regulation or order after the date of this Agreement
regarding capital adequacy, (b) compliance with any such law, treaty, rule,
regulation, or order, or (c) compliance with any guideline or request or
directive from any central bank or other Governmental Authority (whether or not
having the force of law) shall have the effect of reducing the rate of return on
such Lender's (or any corporation controlling such Lender's) capital as a
consequence of its obligations hereunder or under or in respect of any Letter of
Credit or Bankers' Acceptance to a level below that which such Lender or such
corporation could have achieved but for such adoption, change, compliance or
interpretation, then, upon demand from time to time by such Lender (with a copy
of such demand to the Administrative Agent), the Borrowers shall pay to the
Administrative Agent for the account of such Lender, from time to time as
specified by such Lender, additional amounts sufficient to compensate such
Lender for such reduction. A certificate as to such amounts submitted to the
Borrowers and the Administrative Agent by such Lender shall be conclusive and
binding for all purposes absent manifest error.

         (b)  Breakage Costs. In addition to all amounts required to be paid by
the Borrowers pursuant to Section 2.11, the Borrowers shall compensate each
Lender, upon demand, for all losses, expenses and liabilities (including any
loss or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund or maintain such
Lender's Eurocurrency Rate Loans or BA Rate Loans to the Borrowers but excluding
any loss of the Applicable Margin on the relevant Loans) which that Lender may
sustain (i) if for any reason a proposed Borrowing, conversion into or
continuation of Eurocurrency Rate Loans does not occur on a date specified
therefor in a Notice of Borrowing or a Notice of Conversion or Continuation
given by the Borrowers or in a telephonic request by it for borrowing or
conversion or continuation or a successive Interest Period does not commence
after notice therefor is given pursuant to Section 2.12, (ii) if for any reason
any Eurocurrency Rate Loan or BA Rate Loan is prepaid (including mandatorily
pursuant to Section 2.10) on a date which is not the last day of the applicable
Interest Period, (iii) as a consequence of a required conversion of a
Eurocurrency Rate Loan to a Base Rate Loan as a result of any of the events
indicated in Section 2.15(d), or (iv) as a consequence of any failure by the
Borrowers to repay Eurocurrency Rate Loans or BA Rate Loans when required by the
terms hereof. The Lender making demand for such compensation shall deliver to
the Borrowers concurrently with such demand a written statement as to such
losses, expenses and liabilities, and this statement shall be conclusive as to
the amount of compensation due to that Lender, absent manifest error.

         SECTION 2.17. TAXES.

         (a)  Any and all payments by the Borrowers under each Loan Document
shall be made free and clear of and without deduction for any and all present or
future taxes, levies, imposts, deductions, charges or withholdings, and all
liabilities with respect thereto, (including, but not limited to, any of the
foregoing which may be imposed in Canada or any political subdivision or taxing
authority thereof or therein, or any federal or other association of or with
which Canada may be a member or associated and specifically including any
withholding made pursuant to Part XIII of the Income Tax Act (Canada) in respect
of any interest payment hereunder) unless the relevant Borrower is required to
do so by law or the interpretation thereof by the relevant taxing authority;
provided, however, that the following will be excluded taxes: (i) in the case of
each Lender and the Administrative Agent (A) taxes measured by its net income,
and franchise taxes imposed on it, by the jurisdiction (or any political
subdivision thereof) under the laws of which such Lender or the Administrative
Agent (as the case may be) is organized and (B) any United States withholding
taxes payable with respect to payments under the Loan Documents under laws
(including any statute, treaty or regulation) in effect on the Effective Date
(or, in the case of an

                                       51
<PAGE>   57

Eligible Assignee, the date of the Assignment and Acceptance) applicable to such
Lender or the Administrative Agent, as the case may be, but not excluding any
United States withholding payable as a result of any change in such laws
occurring after the Effective Date (or the date of such Assignment and
Acceptance) and (ii) in the case of each Lender, taxes measured by its net
income, and franchise taxes imposed on it, by the jurisdiction in which such
Lender's Applicable Lending Office is located (all such non-excluded taxes,
levies, imposts, deductions, charges, with Company and liabilities being
hereinafter referred to as "Taxes"). If any Taxes shall be required by law to be
deducted or withheld from or in respect of any sum payable under any Loan
Document to any Lender or the Administrative Agent (i) the sum payable shall be
increased as may be necessary so that after making all required deductions
(including deductions or withholdings applicable to additional sums payable
under this Section 2.17) such Lender or the Administrative Agent (as the case
may be) receives an amount equal to the sum it would have received had no such
deductions been made, (ii) the Borrowers shall make such deductions or
withholdings, (iii) the Borrowers shall pay the full amount deducted or withheld
to the relevant taxing authority or other authority in accordance with
applicable law, and (iv) the Borrowers shall deliver to the Administrative Agent
evidence of such payment.

         (b)  In addition, the Borrowers agree to pay any present or future
stamp or documentary taxes or any other excise or property taxes, charges or
similar levies of the United States or any political subdivision thereof or any
applicable foreign jurisdiction, and all liabilities with respect thereto, which
arise from any payment made under any Loan Document or from the execution,
delivery or registration of, or otherwise with respect to, any Loan Document
(collectively, "Other Taxes").

         (c)  The Borrowers will indemnify each Lender and the Administrative
Agent for the full amount of Taxes and Other Taxes (including any Taxes or Other
Taxes imposed by any jurisdiction on amounts payable under this Section 2.17)
paid by such Lender or the Administrative Agent (as the case may be) and any
liability (including for penalties, interest and expenses) arising therefrom or
with respect thereto, whether or not such Taxes or Other Taxes were correctly or
legally asserted. This indemnification shall be made within 30 days from the
date such Lender or the Administrative Agent (as the case may be) makes written
demand therefor.

         (d)  Within 30 days after the date of any payment of Taxes or Other
Taxes, the Borrowers will furnish to the Administrative Agent, at its address
referred to in Section 9.8, the original or a certified copy of a receipt
evidencing payment thereof.

         (e)  Without prejudice to the survival of any other agreement of the
Borrowers hereunder, the agreements and obligations of the Borrowers contained
in this Section 2.17 shall survive the payment in full of the Obligations.

         (f)  Prior to the Effective Date in the case of each Non-U.S. Lender
that is a signatory hereto, and on the date of the Assignment and Acceptance
pursuant to which it becomes a Lender in the case of each other Non-U.S. Lender
and from time to time thereafter if requested by the Borrowers or the
Administrative Agent, each Non-U.S. Lender that is entitled at such time to an
exemption from United States withholding tax, or that is subject to such tax at
a reduced rate under an applicable tax treaty, shall provide the Administrative
Agent and the Borrowers with two completed copies of: (i) Form W-8ECI (claiming
exemption from withholding because the income is effectively connected with a
U.S. trade or business) (or any successor form); (ii) Form W-8BEN (claiming
exemption from, or a reduction of, withholding tax under an income tax treaty)
(or any successor form); (iii) in the case of a Non-U.S. Lender claiming
exemption under Sections 871(h) or 881(c) of the Code, a Form W-8BEN (claiming
exemption from withholding under the portfolio interest exemption)(or successor
form); or (iv) or other applicable form, certificate or document prescribed by
the IRS certifying as to such Non-U.S. Lender's entitlement to such exemption
from United States withholding tax or reduced rate with respect to all payments
to be made to such Non-U.S. Lender under the Loan Documents. Unless the
Borrowers and the Administrative Agent have received forms or other documents
satisfactory to them indicating that payments under any Loan Document to or for
a Non-U.S. Lender are not subject to United States

                                       52
<PAGE>   58

withholding tax or are subject to such tax at a rate reduced by an applicable
tax treaty, the Borrowers or the Administrative Agent shall withhold taxes from
such payments at the applicable statutory rate.

         (g)  Any Lender claiming any additional amounts payable pursuant to
this Section 2.17 shall use its reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions) to change the jurisdiction of its
Applicable Lending Office if the making of such a change would avoid the need
for, or reduce the amount of, any such additional amounts which would be payable
or may thereafter accrue and would not, in the sole determination of such
Lender, be otherwise disadvantageous to such Lender.

         (h)  Each Borrower represents and warrants that, as of the date hereof,
to the best of its knowledge after due inquiry, (i) neither this Agreement nor
the execution or delivery by such Borrower of this Agreement is subject to any
Taxes, and (ii) no payment to be made by any Borrower hereunder or under any
Note is subject to any Taxes.

         SECTION 2.18. CRIMINAL RATE OF INTEREST. Notwithstanding any other
provisions of this Agreement, in no event shall the aggregate "interest" (as
defined in Section 347 ("Section 347") of the Criminal Code, Revised Statutes of
Canada, 1985, C-46, as the same shall be amended, replaced or re-enacted from
time to time) payable to the Lenders under this Agreement exceed the effective
annual rate of interest on the "credit advances" (as defined in Section 347)
hereunder lawfully permitted under Section 347 and, if any payment, collection
or demand pursuant to this Agreement in respect of "interest" (as defined in
Section 347) is determined to be contrary to the provisions of Section 347, such
payment, collection or demand shall be deemed to have been made by mutual
mistake of the Lenders and the Borrowers and the amount of such payment or
collection shall be refunded by the Lenders to the Borrowers. For the purposes
of this Agreement, the effective annual rate of interest shall be determined in
accordance with generally accepted actuarial practices and principles over the
term of the Loans on the basis of annual compounding for the lawfully permitted
rate of interest and, in the event of dispute, a certificate of a Fellow of the
Canadian Institute of Actuaries appointed by the Administrative Agent for the
account of the Borrowers will be conclusive for the purpose of such
determination in the absence of evidence to the contrary.

         SECTION 2.19. SUBSTITUTION OF LENDERS. In the event that (a) (i) any
Lender makes a claim under Section 2.15(c) or Section 2.16(a), or (ii) it
becomes illegal for any Lender to continue to fund or make any Eurocurrency Rate
Loan and such Lender notifies the Borrowers pursuant to Section 2.15(d), or
(iii) the Borrowers are required to make any payment pursuant to Section 2.17
that is attributable to any Lender, or (iv) any Lender is a Non-Funding Lender,
(b) in the case of clause (a)(i) above, as a consequence of increased costs in
respect of which such claim is made, the effective rate of interest payable to
such Lender under this Agreement with respect to its Loans materially exceeds
the effective average annual rate of interest payable to the Requisite Lenders
under this Agreement and (c) Lenders holding at least 75% of the Commitments are
not subject to such increased costs or illegality, payment or proceedings (any
such Lender, an "Affected Lender"), the Borrowers may substitute another
financial institution for such Affected Lender hereunder, upon reasonable prior
written notice (which written notice must be given within 90 days following the
occurrence of any of the events described in clauses (a)(i), (ii), (iii) or
(iv)) by the Borrowers to the Administrative Agent and the Affected Lender that
the Borrowers intend to make such substitution, which substitute financial
institution must be an Eligible Assignee and, if not a Lender, reasonably
acceptable to the Administrative Agent; provided, however, that if more than one
Lender claims increased costs, illegality or right to payment arising from the
same act or condition and such claims are received by the Borrowers within 30
days of each other then the Borrowers may substitute all, but not (except to the
extent the Borrowers have already substituted one of such Affected Lenders
before the Borrowers' receipt of the other Affected Lenders' claim) less than
all, Lenders making such claims. In the event that the proposed substitute
financial institution or other entity is reasonably acceptable to the
Administrative Agent and the written notice was properly issued under this
Section 2.19, the Affected Lender shall sell and the substitute financial
institution or other entity shall purchase, pursuant to an Assignment and
Acceptance, all rights and claims of such Affected Lender under

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<PAGE>   59

the Loan Documents and the substitute financial institution or other entity
shall assume and the Affected Lender shall be relieved of its Commitments and
all other prior unperformed obligations of the Affected Lender under the Loan
Documents (other than in respect of any damages (other than exemplary or
punitive damages, to the extent permitted by applicable law) in respect of any
such unperformed obligations). Upon the effectiveness of such sale, purchase and
assumption (which, in any event shall be conditioned upon the payment in full by
the Borrowers to the Affected Lender in cash of all fees, unreimbursed costs and
expenses and indemnities accrued and unpaid through such effective date), the
substitute financial institution or other entity shall become a "Lender"
hereunder for all purposes of this Agreement having a Revolving Credit
Commitment (if applicable) in the amount of such Affected Lender's Revolving
Credit Commitment assumed by it and such Revolving Credit Commitment (if
applicable) of the Affected Lender shall be terminated, provided that all
indemnities under the Loan Documents shall continue in favor of such Affected
Lender.

         SECTION 2.20. FACILITIES INCREASES. The Borrowers may no more
frequently than once in any twelve month period, request the Lenders or other
Eligible Assignees to provide additional Commitments in minimum increments of
$50,000,000 (applied pro rata across the Facilities based on the amount of the
respective Revolving Credit Commitments and Term Loan Commitments on the
Effective Date, or such other allocation as shall be agreed to by the
Administrative Agent and the Requisite Lenders) up to an aggregate amount not in
excess of $100,000,000 (each a "Facilities Increase"); provided, however, that
(i) the Borrowers shall have given the Administrative Agent at least 60 days
notice of its intention to effect a Facilities Increase and the desired amount
of such Facilities Increase, (ii) on the Facilities Increase Effective Date and
after giving effect thereto, the Senior Leverage Ratio for the most recently
ended Fiscal Quarter for which Financial Statements have been delivered pursuant
to Section 5.4(b) is less than or equal to 3.00:1 on a Pro Forma Basis, (iii)
the conditions precedent to a Borrowing set forth in Section 3.2 are satisfied
as of such date, and (iv) an opinion of counsel to the Loan Parties in form and
substance and from counsel satisfactory to the Administrative Agent and
addressed to the Administrative Agent, the Collateral Agent, the Issuers and the
Lenders and addressing such matters as any Lender through the Administrative
Agent may reasonably request shall be delivered to the Administrative Agent. The
Borrowers shall have the right to offer such increase to (x) the Lenders, and
each Lender will have the right, but not the obligation, to commit to all or a
portion of the proposed Facilities Increase or (y) Eligible Assignees; provided,
however, that the minimum additional Commitment of each such Lender or Eligible
Assignee equals or exceeds $5,000,000 and such Lender or Eligible Assignee
executes an Assumption Agreement pursuant to which such Lender or Eligible
Assignee agrees to commit to all or a portion of such Facilities Increase and,
in the case of an Eligible Assignee, to be bound by the terms of this Agreement
as a Lender. On the effective date provided for in the Assumption Agreements
providing for a Facilities Increase (each a "Facilities Increase Effective
Date"), the Revolving Credit Commitments and the Term Loan Commitments will be
increased by the amount committed to by each Lender or Eligible Assignee on the
Facilities Increase Date. In the event there are Lenders and Eligible Assignees
that have committed to a Facilities Increase in excess of the maximum amount
requested (or permitted), then the Administrative Agent shall have the right to
allocate such commitments, first to Lenders and then to Eligible Assignees, on
whatever basis the Administrative Agent determines is appropriate in
consultation with the Company. The Administrative Agent and the Lenders reserve
the right to charge the Company for additional fees to provide such additional
commitments for a Facilities Increase.

                                  ARTICLE III

                    CONDITIONS TO LOANS AND LETTERS OF CREDIT

         SECTION 3.1. CONDITIONS PRECEDENT TO INITIAL LOANS AND LETTERS OF
CREDIT. The effectiveness of this Agreement is subject to the satisfaction of
all of the following conditions precedent:

         (a) Certain Documents. The Administrative Agent shall have received on
the Effective Date each of the following, each dated the Effective Date unless
otherwise indicated or agreed

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<PAGE>   60

to by the Administrative Agent, in form and substance satisfactory to the
Administrative Agent and in sufficient copies for each Lender:

              (i)     this Agreement, duly executed and delivered by the
    Borrowers and, for the account of each Lender requesting the same, a Note or
    Notes of the Borrowers conforming to the requirements set forth herein;

              (ii)    the Guaranty, duly executed by the Company and each
    Subsidiary Guarantor;

              (iii)   the Pledge and Security Agreement, duly executed by the
    Company and each Subsidiary Guarantor, together with:

                      (A)    evidence satisfactory to the Administrative Agent
         that the Collateral Agent (for the benefit of the Secured Parties) has
         a valid and perfected first priority security interest in the
         Collateral, including (x) such documents duly executed by each Loan
         Party as the Administrative Agent may request with respect to the
         perfection of its security interests in the Collateral (including
         evidence satisfactory to the Administrative Agent that financing
         statements under the UCC, patent, trademark and copyright security
         agreements and other applicable documents under the laws of any
         jurisdiction have been appropriately filed with respect to the
         perfection of Liens created by the Pledge and Security Agreement) and
         (y) copies of UCC search reports as of a recent date listing all
         effective financing statements that name any Loan Party as debtor,
         together with copies of such financing statements, none of which shall
         cover the Collateral except for those which shall be terminated on the
         Effective Date);

                      (B)    share certificates representing all of certificated
         Pledged Stock being pledged pursuant to the Pledge and Security
         Agreement and stock powers for such share certificates executed in
         blank; and

                      (C)    all instruments representing Pledged Notes being
         pledged pursuant to the Pledge and Security Agreement duly endorsed in
         favor of the Collateral Agent or in blank;

              (iv)    each Foreign Collateral Document (covering, among other
    things, such pledges of the Stock of Foreign Subsidiaries as the
    Administrative Agent shall deem appropriate), duly executed by the parties
    thereto, together with, if applicable:

                      (A)    evidence satisfactory to the Administrative Agent
         that the Collateral Agent (for the benefit of the Secured Parties) has
         a valid and perfected first priority  security interest in the
         Collateral consistent with the provisions set forth in Section 5.8(b),
         including (x) such documents duly executed by each Loan Party as the
         Administrative Agent may request with respect to the perfection of its
         security interests in the Collateral (including evidence satisfactory
         to the Administrative Agent that patent, trademark and copyright
         security agreements and other applicable documents under the laws of
         any jurisdiction have been appropriately filed with respect to the
         perfection of Liens created by the applicable Foreign Collateral
         Document) and (y) copies of all search reports as of a recent date
         listing all effective financing statements that name any Loan Party as
         debtor, together with copies of such financing statements, none of
         which shall cover the Collateral except for those which shall be
         terminated on the Effective Date);

                      (B)    share certificates representing all of certificated
         Pledged Stock being pledged pursuant to such Foreign Collateral
         Documents and stock powers for such share certificates executed in
         blank; and

                                       55
<PAGE>   61

                      (C) all instruments representing Pledged Notes being
          pledged pursuant to such Foreign Collateral Documents duly endorsed in
          favor of the Collateral Agent or in blank;

               (v)    the Mortgage Documents together with: (A) title insurance
     policies, satisfactory in form and substance to the Administrative Agent,
     in its sole discretion; (B) evidence that counterparts of the Mortgage
     Documents have been recorded in all places to the extent necessary or
     desirable, in the judgment of the Administrative Agent, to create a valid
     and enforceable first priority lien on property described therein in favor
     of the Collateral Agent for the benefit of the Secured Parties (or in favor
     of such other trustee as may be required or desired under local law); and
     (C) an opinion of counsel in each state in which any Mortgage Document is
     recorded in form and substance and from counsel satisfactory to the
     Administrative Agent;

               (vi)   a favorable opinion of (A) Dykema Gossett DLLC, counsel to
     the Loan Parties, in substantially the form of Exhibit F-1, (B) counsel to
     the Loan Parties in Canada in form and substance and from counsel
     satisfactory to the Administrative Agent, in each case addressed to the
     Administrative Agent, the Collateral Agent, the Issuers and the Lenders and
     addressing such matters as any Lender through the Administrative Agent may
     reasonably request and (C) counsel to the Administrative Agent as to the
     enforceability of this Agreement and the other Loan Documents to be
     executed on the Effective Date;

               (vii)  a copy of the articles or certificate of incorporation (or
     equivalent organizational documents) of each Loan Party (translated into
     English if applicable), certified as of a recent date by the applicable
     Governmental Authority of the jurisdiction of incorporation of such Loan
     Party, together with certificates of such official attesting to the good
     standing of each such Loan Party;

               (viii) a certificate of the Secretary or an Assistant Secretary
     of each Loan Party certifying (A) the names and true signatures of each
     officer of such Loan Party who has been authorized to execute and deliver
     any Loan Document or other document required hereunder to be executed and
     delivered by or on behalf of such Loan Party, (B) the by-laws (or
     equivalent Constituent Document) of such Loan Party as in effect on the
     date of such certification, (C) the resolutions of such Loan Party's Board
     of Directors (or equivalent governing body) approving and authorizing the
     execution, delivery and performance of this Agreement and the other Loan
     Documents to which it is a party and (D) that there have been no changes in
     the certificate of incorporation (or equivalent Constituent Document) of
     such Loan Party from the certificate of incorporation (or equivalent
     Constituent Document) delivered pursuant to the immediately preceding
     clause;

               (ix)   a certificate of the Chief Financial Officer of each of
     the Borrowers, stating that such Borrower is Solvent after giving effect to
     the initial Loans and Letters of Credit, the application of the proceeds
     thereof in accordance with Section 4.7 and the payment of all estimated
     legal, accounting and other fees related hereto and thereto;

               (x)    a certificate of a Responsible Officer of the Company and
     of each of the Borrowing Subsidiaries to the effect that (A) the condition
     set forth in Section 3.2(b) has been satisfied, (B) no litigation other
     than that listed on Schedule 4.5 shall have been commenced against any Loan
     Party or any of its Subsidiaries which, if adversely determined, would have
     a Material Adverse Effect and (C) after giving effect to the execution and
     delivery of each Loan Document by each Loan Party which is a party thereto
     and the incurrence of Indebtedness up to the maximum amount of the
     Commitments (whether or not fully incurred on the Effective Date), the
     Company and each of its Subsidiaries which are party to the Senior
     Subordinated Note Indentures will be in compliance with the terms and
     provisions thereof;

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<PAGE>   62

               (xi)    evidence satisfactory to the Administrative Agent that
     the insurance policies required by Section 5.3 and any Collateral Document
     are in full force and effect, together with endorsements naming the
     Collateral Agent, on behalf of the Secured Parties, as an additional
     insured and/or loss payee under all insurance policies to be maintained
     with respect to the properties of the Borrowers and its Subsidiaries;

               (xii)   a pro forma balance sheet of the Company and its
     Restricted Subsidiaries as of June 30, 2000 after giving effect to the
     transactions contemplated in this Agreement;

               (xiii)  evidence satisfactory to the Administrative Agent,
     including without limitation, legal opinions of the Borrowers' counsel,
     that all transactions contemplated pursuant to this Agreement, including
     without limitation making of all Loans, Letters of Credit and Bankers'
     Acceptances and all transactions contemplated in relation to the Aries
     Acquisition, are in compliance with, and do not cause any breach or other
     default under, any of the Senior Subordinated Debt Documents;

               (xiv)   the Mexican Intercreditor Agreement, duly executed by all
     parties thereto, together with any documents required in connection
     therewith by the Administrative Agent, including without limitation, the
     written consent of the requisite Mexican Facility Tranche A Lenders to the
     Collateral Documents;

               (xv)    the Acknowledgment and Consent of Oxford Investment
     Group, Inc., duly executed by Oxford Investment Group, Inc.;

               (xvi)   the Lenders shall have received and be satisfied with
     audited financial statements of the Company and its Subsidiaries for the
     fiscal period ending March 31, 2000 prepared by PricewaterhouseCoopers LLP
     which statements shall be unqualified;

               (xvii)  there shall have occurred no Material Adverse Change
     since March 31, 2000;

               (xviii) (A) the Master Assignment Agreement and (B) the
     Assignment and Release Agreement, each duly executed by all parties
     thereto, together with any documents required in connection therewith by
     the Administrative Agent;

               (xix)   all Liens granted to the Existing Agent and lenders under
     the Existing Credit Agreement shall have been assigned to the Collateral
     Agent, as agent for the Secured Parties, in form and substance satisfactory
     to the Lenders; and

               (xx)    such other certificates, documents, agreements and
     information respecting any Loan Party as any Lender through the
     Administrative Agent may reasonably request.

          (b) Fee and Expenses Paid. There shall have been paid to the
Administrative Agent, for the account of the Administrative Agent and the
Lenders, as applicable, all fees due and payable on or before the Effective Date
(including all such fees described in the Fee Letter), and all expenses due and
payable on or before the Effective Date.

          (c) Consents, Etc. Each of the Company and its Subsidiaries shall have
received all consents and authorizations required pursuant to any material
Contractual Obligation with any other Person and shall have obtained all
consents and authorizations of, and effected all notices to and filings with,
any Governmental Authority, in each case, as may be necessary to allow each of
the Borrowers and their respective Subsidiaries lawfully (A) to execute, deliver
and perform, in all material respects, their respective obligations hereunder,
the Loan Documents to which each of them, respectively, is, or shall be,

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<PAGE>   63

a party and each other agreement or instrument to be executed and delivered by
each of them, respectively, pursuant thereto or in connection therewith, and (B)
to create and perfect the Liens on the Collateral to be owned by each of them in
the manner and for the purpose contemplated by the Loan Documents.

          SECTION 3.2. CONDITIONS PRECEDENT TO EACH LOAN AND LETTER OF CREDIT.
The obligation of each Lender on any date (including the Effective Date) to make
any Loan and of each Issuer on any date (including the Effective Date) to issue
any Letter of Credit is subject to the satisfaction of all of the following
conditions precedent:

          (a) Request for Borrowing or Issuance of Letter of Credit. With
respect to any Loan, the Administrative Agent shall have received a duly
executed Notice of Borrowing or, in the case of Swing Loans, a duly executed
Swing Loan Request, and with respect to any Letter of Credit, the Administrative
Agent and the Issuer shall have received a duly executed Letter of Credit
Request.

          (b) Representations and Warranties; No Defaults. The following
statements shall be true on the date of such Loan or issuance, both before and
after giving effect thereto and, in the case of such Loan, to the application of
the proceeds therefrom:

              (i) The representations and warranties set forth in Article IV and
     in the other Loan Documents shall be true and correct on and as of the
     Effective Date and shall be true and correct in all material respects on
     and as of any such date after the Effective Date with the same effect as
     though made on and as of such date, except to the extent such
     representations and warranties expressly relate to an earlier date; and

              (ii) No Default or Event of Default has occurred and is
     continuing.

          (c) No Legal Impediments. The making of the Loans or the issuance of
such Letter of Credit on such date does not violate any Requirement of Law on
the date of or immediately following such Loan or issuance and is not enjoined,
temporarily, preliminarily or permanently.

          (d) Additional Matters. The Administrative Agent shall have received
such additional documents, information and materials as any Lender, through the
Administrative Agent, may reasonably request.

Each submission by the Borrowers to the Administrative Agent of a Notice of
Borrowing or a Swing Loan Request and the acceptance by the Borrowers of the
proceeds of each Loan requested therein, and each submission by the Borrowers to
an Issuer of a Letter of Credit Request and the issuance of each Letter of
Credit requested therein, shall be deemed to constitute a representation and
warranty by the Borrowers as to the matters specified in Section 3.2(b) on the
date of the making of such Loan or the issuance of such Letter of Credit.

          SECTION 3.3. CONDITIONS PRECEDENT TO THE ARIES ACQUISITION BORROWING.

          The obligation of each Lender to make any Loan which will be used,
either directly or indirectly, to finance the Aries Acquisition is subject to
the satisfaction of all of the conditions precedent set forth in Section 3.2,
after giving effect to the consummation of such acquisition, and to the
following conditions precedent:

          (a) Related Documents. The Company shall have delivered to the
Administrative Agent a copy of each Related Document certified as being complete
and correct by a Responsible Officer of the Company and a balance sheet of the
Company and its Restricted Subsidiaries as of June 30, 2000, prepared on a Pro
Forma Basis after giving effect to the Aries Acquisition;

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<PAGE>   64

          (b) Conditions Precedent. The Administrative Agent shall be satisfied
that: (i) the terms and conditions of the Aries Acquisition Agreement shall be
satisfactory in form and substance to the Administrative Agent and executed
copies thereof shall have been delivered to the Administrative Agent and the
Lenders, (ii) the Aries Acquisition Agreement and the other Related Documents
shall have been approved by all corporate action of each of the parties thereto,
shall be in full force and effect and there shall not have occurred and be
continuing any material breach or default thereunder, (iii) all conditions
precedent to the consummation of the Aries Acquisition shall have been satisfied
or waived with the consent of the Administrative Agent, (iv) the Aries
Acquisition shall have been consummated in accordance with the Aries Acquisition
Agreement and all applicable Requirements of Law and all representations and
warranties contained in the Aries Acquisition Agreement and the other Related
Documents shall be true and correct in all material respects on the closing date
of the Aries Acquisition, (v) all requirements set forth in Section 6.9 (b) have
been satisfied and (vi) all additional Loan Documents and opinions of counsel
relating thereto and to the Aries Acquisition reasonably requested by the
Administrative Agent shall be in form and substance satisfactory to the
Administrative Agent and the Requisite Lenders and executed copies thereof shall
have been delivered to the Administrative Agent.

          (c) Consents. All necessary governmental and third party consents and
approvals necessary in connection with the Aries Acquisition, the Facilities and
the transactions contemplated thereby shall have been obtained (without the
imposition of any conditions that are not reasonably acceptable to the Lenders)
and shall remain in effect, and all applicable governmental filings have been
made and all applicable waiting periods shall have expired without in either
case any action being taken by any competent authority; and no law or regulation
shall be applicable in the judgment of the Lenders that restrains, prevents or
imposes materially adverse conditions upon the Aries Acquisition, the Facilities
or the transactions contemplated thereby.

                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

          To induce the Lenders, the Issuers and the Administrative Agent to
enter into this Agreement, each of the Borrowers, with respect to itself and its
Subsidiaries, represents and warrants to the Lenders, the Issuers and the
Administrative Agent that, on and as of the Effective Date, after giving effect
to the making of the Loans and other financial accommodations on the Effective
Date and on and as of each date as required by Section 3.2(b)(i):

          SECTION 4.1. CORPORATE EXISTENCE AND POWER. Each of the Loan Parties
is a corporation or other organization duly organized, validly existing and in
good standing under the laws of its respective jurisdiction of incorporation or
formation, and is duly qualified to do business, and is in good standing, in all
additional jurisdictions where such qualification is necessary under applicable
law, except for jurisdictions where their failure to be so qualified would not
have a Material Adverse Effect. Each of the Loan Parties has all requisite
corporate or other organizational power to own or lease the properties used in
its business and to carry on its business as now being conducted and as proposed
to be conducted, and to execute and deliver the Loan Documents to which it is a
party and to engage in the transactions contemplated by this Agreement.

          SECTION 4.2. CORPORATE AUTHORITY. The execution, delivery and
performance by each of the Loan Parties of the Loan Documents to which each of
them is a party have been duly authorized by all necessary corporate or other
organizational action and are not in contravention of any law, rule or
regulation, or any judgment, decree, writ, injunction, order or award of any
arbitrator, court or governmental authority, or of the terms of such Loan
Party's Constituent Documents, or of any contract or undertaking to which such
Loan Party is a party or by which such Loan Party or any of their property may
be bound or affected and will not result in the imposition of any Lien on any of
such Loan Party's property or of any of such Loan Party's property, except for
Permitted Liens.

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          SECTION 4.3. BINDING EFFECT. The Loan Documents to which each of the
Loan Parties is a party are the legal, valid and binding obligations of such
Loan Party, respectively, enforceable against each of them in accordance with
their respective terms.

          SECTION 4.4. SUBSIDIARIES. Schedule 4.4 hereto correctly sets forth
the corporate name, jurisdiction of incorporation or formation and ownership of
each Subsidiary of the Company. Each such Subsidiary and each corporation or
other organization becoming a Subsidiary of the Company after the date hereof is
and will be a corporation or other organization duly organized, validly existing
and in good standing under the laws of its jurisdiction of incorporation and is
and will be duly qualified to do business in each additional jurisdiction where
such qualification is or may be necessary under applicable law, except for such
failure which could not have a Material Adverse Effect. Each Subsidiary of the
Company has and will have all requisite corporate or other organizational power
to own or lease the properties used in its business and to carry on its business
as now being conducted and as proposed to be conducted. All outstanding Stock of
each Subsidiary of the Company have been and will be validly issued and are and
will be fully paid and nonassessable and, except with respect to the Lobdell
Preferred Stock or as disclosed in writing to and approved by the Administrative
Agent from time to time, are and will be owned, beneficially and of record, by
the Company or another Subsidiary of the Company free and clear of any Liens,
except Permitted Liens.

          SECTION 4.5. LITIGATION. Except as set forth in Schedule 4.5 hereto,
there is no action, suit or proceeding pending or, to the best of such
Borrower's knowledge, threatened against or affecting the Borrower or any of its
Subsidiaries before or by any court, governmental authority or arbitrator,
which, if adversely decided would have, either individually or collectively, a
Material Adverse Effect and, to the best of such Borrower's knowledge, there is
no basis for any such action, suit or proceeding.

          SECTION 4.6. FINANCIAL CONDITION. The consolidated and consolidating
balance sheet of the Company and its Subsidiaries and the consolidated and
consolidating statements of income, retained earnings and cash flows of the
Company and its Subsidiaries for the fiscal year ended March 31, 2000 and
reported on by PricewaterhouseCoopers LLP, independent certified public
accountants, copies of which have been furnished to the Lenders, fairly present,
and the financial statements of the Company and its Subsidiaries delivered
pursuant to Section 5.4 will fairly present, the consolidated financial position
of the Company and its Subsidiaries as at the respective dates thereof, and the
consolidated results of operations of the Company and its Subsidiaries for the
respective periods indicated, all in accordance with GAAP consistently applied
(subject, in the case of said interim statements, to year-end audit
adjustments). Since March 31, 2000 there has been no Material Adverse Change and
there have been no events or developments that in the aggregate have had a
Material Adverse Effect. There is no contingent liability of the Company or any
of its Subsidiaries that is not reflected in such financial statements or in the
notes thereto which would have a Material Adverse Effect. Neither the Company
nor any Restricted Subsidiary is liable directly or indirectly, for any of the
Indebtedness or other liabilities of any Unrestricted Subsidiary or for any
Guaranty Obligation or other contingent liability with respect to any
Unrestricted Subsidiary except as permitted by Section 6.2.

          SECTION 4.7. USE OF PROCEEDS. The Borrowers will use the proceeds of
the Loans, Letters of Credit and Acceptances to complete the Aries Acquisition
and to provide working capital from time to time for the Borrowers and their
Restricted Subsidiaries and for general corporate purposes. Neither the Company
nor any of its Subsidiaries extends or maintains, in the ordinary course of
business, credit for the purpose, whether immediate, incidental, or ultimate, of
buying or carrying margin stock (within the meaning of Regulations T, U or X of
the Federal Reserve Board), and no part of the proceeds of any Loan will be used
for the purpose, whether immediate, incidental, or ultimate, of buying or
carrying any such margin stock or maintaining or extending credit to others for
such purpose.

          SECTION 4.8. CONSENTS, ETC. Except for such consents, approvals,
authorizations, declarations, registrations or filings delivered by the Company
pursuant to Section 3.1 and, after the

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closing of the Aries Acquisition, Section 3.3, if any, each of which is in full
force and effect, no consent, approval or authorization of or declaration,
registration or filing with any governmental authority or any nongovernmental
Person or entity, including without limitation any creditor, lessor or
stockholder of the Company or any of its Subsidiaries, is required on the part
of any Borrower or any Guarantor in connection with the execution, delivery and
performance of the Loan Documents or the transactions contemplated hereby or as
a condition to the legality, validity or enforceability of any of the Loan
Documents.

          SECTION 4.9. TAXES. Each of the Borrowers and its Restricted
Subsidiaries have filed all tax returns (federal, state and local) required to
be filed and have paid all taxes shown thereon to be due, including interest and
penalties, or have established adequate financial reserves on their respective
books and records for payment thereof. Neither the Borrowers nor any of their
respective Restricted Subsidiaries know of any actual or proposed tax assessment
or any basis therefor, and no extension of time for the assessment of
deficiencies in any federal or state tax has been granted by such Borrower or
any such Restricted Subsidiary. No Borrower will amend any Tax Sharing Agreement
without the prior approval of the Administrative Agent except to add wholly
owned Restricted Subsidiaries to any such Tax Sharing Agreement.

          SECTION 4.10. TITLE TO PROPERTIES. Except as otherwise disclosed in
the latest balance sheet referred to in Section 4.6 or delivered pursuant to
Section 5.4, the Company or one or more of its Restricted Subsidiaries have good
and marketable fee simple title (or the equivalent thereto in any relevant
foreign jurisdiction) to all of the real property, and a valid and indefeasible
ownership or leasehold interest in all of the other properties and assets
(including, without limitation, the collateral subject to the Collateral
Documents to which any of them is a party) reflected in said balance sheet or
subsequently acquired by the Company or any such Restricted Subsidiary. All of
such properties and assets are free and clear of any Lien, except for Permitted
Liens. The Collateral Documents grant a first priority, perfected and
enforceable lien and security interest in all collateral described therein,
subject only to Permitted Liens.

          SECTION 4.11. LABOR MATTERS.

          (a) There are no strikes, work stoppages, slowdowns or lockouts
pending or, to any Borrower's knowledge, threatened against or involving any
Borrower or any of their respective Subsidiaries, other than those which in the
aggregate would not have a Material Adverse Effect.

          (b) There are no unfair labor practices, grievances or complaints
pending, or, to any Borrower's knowledge, threatened against or involving any
Borrower or any of their respective Subsidiaries, nor are there any arbitrations
or grievances threatened involving any Borrower or any of their respective
Subsidiaries, other than those which, in the aggregate, if resolved adversely to
such Borrower or such Subsidiary, would not have a Material Adverse Effect.

          (c) Except as set forth on Schedule 4.11, as of the Effective Date,
there is no collective bargaining agreement covering any of the employees of any
Borrower or its Subsidiaries.

          (d) Schedule 4.11 sets forth as of the date hereof, all material
consulting agreements, executive employment agreements, executive compensation
plans, deferred compensation agreements, employee stock purchase and stock
option plans and severance plans of each Borrower and its Subsidiaries.

          SECTION 4.12. ERISA. The Company and its ERISA Affiliates and their
respective Title IV Plans are in compliance in all material respects with those
provisions of ERISA and of the Code which are applicable with respect to any
Title IV Plan. No Prohibited Transaction and no Reportable Event has occurred
with respect to any such Plan which could, in the aggregate, result in any
liability to the Company or any of its ERISA Affiliates in excess of $2,000,000.
None of the Company or any of its

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ERISA Affiliates is an employer with respect to any Multiemployer Plan. The
Company and its ERISA Affiliates have met or are meeting in compliance with all
laws and regulations the minimum funding requirements under ERISA and the Code
with respect to each of their respective Title IV Plans, if any, and have not
incurred any liability to the PBGC or any Title IV Plan. The execution, delivery
and performance of the Loan Documents do not constitute a Prohibited
Transaction. There is no Unfunded Pension Liability, with respect to any Title
IV Plan of the Company or its ERISA Affiliates which would have a Material
Adverse Effect.

          SECTION 4.13. DISCLOSURE. No report or other information furnished in
writing by or on behalf of any Borrower or any of its Subsidiaries to any Lender
or the Administrative Agent in connection with the negotiation or administration
of this Agreement contains any material misstatement of fact or omits to state
any material fact or any fact necessary to make the statements contained therein
not misleading in light of the circumstances in which they were made. No Loan
Document nor any other document, certificate, or report or statement or other
information furnished to any Lender or the Administrative Agent by or on behalf
of any Borrower or any of its Subsidiaries in connection with the transactions
contemplated hereby contains any untrue statement of a material fact or omits to
state a material fact in order to make the statements contained herein and
therein not misleading in light of the circumstances in which they were made.
There is no fact known to any Borrower which materially and adversely affects,
or which in the future may (so far as such Borrower can now reasonably foresee)
materially and adversely affect, the business, properties, operations or
condition, financial or otherwise, of such Borrower or any of its Subsidiaries,
which has not been set forth in this Agreement (including without limitation the
schedules hereto) or in the other documents, certificates, statements, reports
and other information furnished in writing to the Lenders by or on behalf of
such Borrower or any of its Subsidiaries in connection with the transactions
contemplated hereby.

          SECTION 4.14. ENVIRONMENTAL MATTERS.

          (a) Except as disclosed on Schedule 4.14, the operations of the
Company and each of its Subsidiaries have been and are in compliance with all
Environmental Laws, including obtaining and complying with all required
environmental, health and safety Permits, other than non-compliances that in the
aggregate would not have a reasonable likelihood of the Company and its
Subsidiaries incurring Environmental Liabilities and Costs in excess of $200,000
with respect to the Company or any Subsidiary or $500,000 with respect to the
Company and its Subsidiaries, taken as a whole.

          (b) Except as disclosed on Schedule 4.14, none of the Company or any
of its Subsidiaries or any real property currently or, to the knowledge of the
Company, previously owned, operated or leased by or for the Company or any of
its Subsidiaries is subject to any pending or, to the knowledge of the Company,
threatened, claim, order, agreement, notice of violation, notice of potential
liability or is the subject of any pending or threatened proceeding or
governmental investigation under or pursuant to Environmental Laws other than
those that in the aggregate would not have a reasonable likelihood of the
Company and its Subsidiaries incurring Environmental Liabilities and Costs in
excess of $200,000 with respect to the Company or any Subsidiary or $500,000
with respect to the Company and its Subsidiaries, taken as a whole.

          (c) Except as disclosed on Schedule 4.14, none of the Company or any
of its Subsidiaries is a treatment, storage or disposal facility requiring a
permit under the Resource Conservation and Recovery Act, 42 U.S.C.ss. 6901 et
seq., the regulations thereunder or any state analog.

          (d) Except as disclosed on Schedule 4.14, to the knowledge of the
Company, after due and reasonable inquiry, there are no facts, circumstances or
conditions arising out of or relating to the operations or ownership of the
Company or any of its Subsidiaries or any real property owned, operated or
leased by the Company or any of its Subsidiaries which would reasonable be
expected to cause the Company or any of its Subsidiaries to incur Environmental
Liabilities and Costs, which are not specifically included in the financial
information furnished to the Lenders other than those that in the

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aggregate would not have a reasonable likelihood of the Company and its
Subsidiaries incurring Environmental Liabilities and Costs in excess of $200,000
with respect to the Company or any Subsidiary or $500,000 with respect to the
Company and its Subsidiaries, taken as a whole.

          (e) As of the date hereof, no Environmental Lien has attached to any
property of the Company or any of its Subsidiaries and, to the knowledge of the
Company, no facts, circumstance or conditions exist that could reasonably be
expected to result in any such Lien attaching to any such property.

          (f) The Company and each of its Subsidiaries has provided the Lenders
with copies of all material environmental, health or safety audits, studies,
assessments, inspections, investigations or other environmental health and
safety reports relating to the operations of the Company or any of its
Subsidiaries or any of their real property that are in the possession, custody
or control of the Company or any of its Subsidiaries.

          (g) None of the items disclosed on the Schedule 4.14, either
individually, or in the aggregate, will have a Material Adverse Effect.

          SECTION 4.15. SOLVENCY. The Company, each Subsidiary and each Loan
Party is individually and together are and, after giving effect to the
transactions described herein and to the incurrence or assumption of all
obligations being incurred or assumed in connection herewith, will be, Solvent.

          SECTION 4.16. NO DEFAULTS UNDER CERTAIN AGREEMENTS. Neither the
Company nor any of its Subsidiaries is in default or has received any written
notice of default under or with respect to any contract or agreement to which it
is a party or by which it is bound, including without limitation any agreements
for the incurrence of any indebtedness or any tooling or purchase contracts,
which would have a Material Adverse Effect. No Default or Event of Default has
occurred and is continuing.

          SECTION 4.17. INTELLECTUAL PROPERTY. Set forth on Schedule 4.17 is a
complete and accurate list of all patents, trademarks, trade names, service
marks and copyrights, and all applications therefor and licenses thereof, of
each Borrower and each of its Restricted Subsidiaries showing as of the
Effective Date the jurisdiction in which registered, the registration number and
the date of registration. Each Borrower and each of its Restricted Subsidiaries
owns, or is licensed to use, all trademarks, tradenames, service marks,
copyrights, technology, know-how and processes necessary for the conduct of its
business as currently conducted (the "Intellectual Property") except for those
the failure to own or license which would not have a Material Adverse Effect. To
any Borrower's knowledge, no claim has been asserted and is pending by any
Person challenging or questioning the use of any such Intellectual Property or
the validity or effectiveness of any such Intellectual Property, nor does any
Borrower or any of its Restricted Subsidiaries know of any valid basis for any
such claim, the use of such Intellectual Property by each Borrower and each of
its Restricted Subsidiaries does not infringe on the rights of any Person, and,
to the knowledge of such Borrower, no Intellectual Property has been infringed,
misappropriated or diluted by any other Person except for such claims,
infringements, misappropriation and dilutions that, in the aggregate, would not
have a Material Adverse Effect.

          SECTION 4.18. PREFERRED STOCK. All Lobdell Preferred Stock Documents
are listed on Schedule 4.18 hereto, and true, correct and complete copies of all
Lobdell Preferred Stock Documents have been delivered to the Administrative
Agent. All dividends, distributions, redemptions and other payments required on
the Lobdell Preferred Stock are described on Schedule 4.18. Other than the
Lobdell Preferred Stock, there is no other Preferred Stock as of the Effective
Date.

          SECTION 4.19. INVESTMENT COMPANY ACT; PUBLIC UTILITY HOLDING COMPANY
ACT. Neither the Company nor any of its Subsidiaries is an "investment company",
or a company "controlled" by an "investment company", within the meaning of the
Investment Company Act of 1940, as amended or

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a "holding company," or an "affiliate" or a "holding company" or a "subsidiary
company" of a "holding company," as each such term is defined and used in the
Public Utility Holding Company Act of 1935, as amended. Neither the Company nor
any of its Subsidiaries is subject to regulation under any federal or state
statute or regulation which limits its ability to incur Indebtedness.

          SECTION 4.20. SENIOR SUBORDINATED DEBT DOCUMENTS. All representations
and warranties of each Borrower and any of its Subsidiaries contained in any
Senior Subordinated Debt Document are true and correct in all material respects.
All agreements, instruments and documents executed or delivered pursuant to the
issuance of the Senior Subordinated Notes are described on Schedule 4.20. All
such Obligations are "Senior Debt " and "Designated Senior Debt" as defined in
the Senior Subordinated Debt Documents and, other than the Obligations, there is
no other "Designated Senior Debt" thereunder. There is no event of default or
event or condition which could become an event of default with notice or lapse
of time or both, under the Senior Subordinated Debt Documents and each of the
Senior Subordinated Debt Documents is in full force and effect. Other than
pursuant to the Senior Subordinated Notes, there is no obligation pursuant to
any Senior Subordinated Debt Document or other document or agreement evidencing
or relating to any Subordinated Debt outstanding or to be outstanding on the
Effective Date which obligates the Company to pay any principal or interest or
redeem any of its Stock or incur any other monetary obligation. The Term Loan is
incurred pursuant to, and in full compliance with, Section 4.3(a) of the Senior
Subordinated Note Indentures, and the Term Loan is classified as Indebtedness
incurred under Section 4.3(a) of the Senior Subordinated Note Indentures and is
not classified as Indebtedness outstanding or incurred pursuant to Section
4.3(b) of the Senior Subordinated Note Indentures; and all other Loans and
Letter of Credit Obligations, up to the full amount of the aggregate Revolving
Credit Commitments, have been or will be incurred pursuant to Section 4.3(b) of
the Senior Subordinated Note Indentures and do not need to meet the requirements
of Section 4.3(a).

          SECTION 4.21. UNRESTRICTED SUBSIDIARIES. Other than the guaranties
permitted by Section 6.2(h), neither the Company nor any Restricted Subsidiary
of the Company is liable, directly or indirectly, for any of the Indebtedness or
other liabilities of any Unrestricted Subsidiary or has any Guaranty Obligation
with respect to any Unrestricted Subsidiary, other than trade payables for the
sale of goods in the ordinary course of business and in compliance with Section
6.11. The Total Assets of the Unrestricted Subsidiaries (other than Wackenhut)
as of the Effective Date do not exceed $100,000.

          SECTION 4.22. MATERIAL AGREEMENTS. No Borrower or any Subsidiary
thereof is a party to any agreement or instrument or subject to any charter or
other corporate restriction which would have a Material Adverse Effect. No
Borrower or any Subsidiary thereof is in default in the performance, observance
or fulfillment of any of the obligations, covenants or conditions contained in
any agreement to which it is a party, which default would have a Material
Adverse Effect.

          SECTION 4.23. COMPLIANCE WITH LAWS. Each Borrower and its Subsidiaries
have complied with all applicable statutes, rules, regulations, orders and
restrictions of any domestic or foreign government or any instrumentality or
agency thereof having jurisdiction over the conduct of their respective
businesses or the ownership of their respective property except for any failure
to comply with any of the foregoing which would not have a Material Adverse
Effect.

          SECTION 4.24. ARIES ACQUISITION. If consummated, all financing and
corporate structure arrangements in relation to the Aries Acquisition, and all
terms of the Aries Acquisition, will be completed as described on Schedule 4.24
and described to the Administrative Agent prior to the Effective Date.

          SECTION 4.25. MEXICAN FACILITY. All representations and warranties of
the Company or any of its Subsidiaries contained in any Mexican Facility
Document are true and correct in all material respects. All agreements,
instruments and documents executed or delivered pursuant to the Mexican Facility
are described on Schedule 4.25. There is no event of default or event or
condition which could

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become an event of default with notice or lapse of time or both, under the
Mexican Facility Documents and each of the Mexican Facility Documents is in full
force and effect. The Mexican Facility provides an aggregate of $75,000,000 of
financing and provides sufficient financing to complete the acquisition,
construction and equipping of the Mexican Manufacturing Facility. No commitment
to lend or otherwise advance funds has been terminated under the Mexican
Facility Documents. The maximum amount of the Mexican Facility Tranche A Loans
is $63,000,000. The obligations and liabilities under the Mexican Facility
Tranche A Guaranty do not and will not exceed the outstanding amount of the
Mexican Facility Tranche A Loans and, other than the Mexican Facility Guaranty,
there are no, and will not be any, liabilities or obligations, direct,
contingent or otherwise, of any kind owing by the Company or any of its
Subsidiaries (other than the Mexican Subsidiaries) pursuant to the Mexican
Facility Documents or otherwise under the Mexican Facility.

                                   ARTICLE V

                              AFFIRMATIVE COVENANTS

          The Company and, as applicable, each of the Borrowers covenant and
agree that, until the termination of all Commitments and Letters of Credit and
thereafter until payment in full of the Obligations of the Borrowers under this
Agreement, any Hedging Contract with any Lender and any other Loan Document,
unless the Requisite Lenders shall otherwise consent in writing, it shall, and
shall cause each of its Restricted Subsidiaries to:

          SECTION 5.1. PRESERVATION OF CORPORATE EXISTENCE, ETC. Do or cause to
be done all things necessary to preserve, renew and keep in full force and
effect its legal existence and its qualification as a foreign corporation or
other organization in good standing in each jurisdiction in which such
qualification is necessary under applicable law, and the rights, licenses,
permits (including those required under Environmental Laws), franchises,
patents, copyrights, trademarks and trade names material to the conduct of its
businesses, except to the extent any of the foregoing would not have a Material
Adverse Effect; and defend all of the foregoing against all claims, actions,
demands, suits or proceedings at law or in equity or by or before any
governmental instrumentality or other agency or regulatory authority.

          SECTION 5.2. COMPLIANCE WITH LAWS, ETC. Comply in all respects with
all applicable laws, rules, regulations and orders of any governmental
authority, whether federal, state, local or foreign (including without
limitation ERISA, the Code and Environmental Laws), in effect from time to time,
except to the extent any of the foregoing would not have a Material Adverse
Effect; and pay and discharge promptly when due all taxes, assessments and
governmental charges or levies imposed upon it or upon its income, revenues or
property, before the same shall become delinquent or in default, as well as all
lawful claims for labor, materials and supplies or otherwise, which, if unpaid,
might give rise to Liens upon such properties or any portion thereof, except to
the extent that payment of any of the foregoing is then being contested in good
faith by appropriate legal proceedings and with respect to which adequate
financial reserves have been established on the books and records of the Company
or the appropriate Restricted Subsidiary in conformity with GAAP.

          SECTION 5.3. MAINTENANCE OF PROPERTIES; INSURANCE. (a) Maintain,
preserve and protect all property that is material to the conduct of the
business of the Company or any of its Restricted Subsidiaries and keep such
property in good repair, working order and condition and from time to time make,
or cause to be made all needful and proper repairs, renewals, additions,
improvements and replacements thereto necessary in order that the business
carried on in connection therewith may be properly conducted at all times in
accordance with customary and prudent business practices for similar businesses,
except to the extent any of the foregoing would not have a Material Adverse
Effect; (b) maintain, preserve and protect all rights, permits, licenses,
approvals and privileges (including all Permits) which are used or useful or
necessary in the conduct of its business, and all Intellectual Property with
respect to its business; except where the failure to so maintain, preserve and
protect would not in the

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aggregate have a Material Adverse Effect; (c) maintain in full force and effect
insurance with responsible and reputable insurance companies or associations in
such amounts, on such terms and covering such risks, including fire and other
risks insured against by extended coverage, as is usually carried by companies
engaged in similar businesses and owning similar properties similarly situated
and maintain in full force and effect public liability insurance, insurance
against claims for personal injury or death or property damage occurring in
connection with any of its activities or any properties owned, occupied or
controlled by it, in such amount as it shall reasonably deem necessary, and
maintain such other insurance as may be required by law or as may be reasonably
requested by the Requisite Lenders for purposes of assuring compliance with this
Section 5.3; and (d) cause all such insurance to name the Collateral Agent on
behalf of the Secured Parties as additional insured or loss payee, as
appropriate, and to provide that no cancellation, material addition in amount or
material change in coverage shall be effective until after 30 days' written
notice thereof to the Administrative Agent.

          SECTION 5.4. REPORTING REQUIREMENTS. Furnish to the Lenders and the
Administrative Agent the following:

          (a) Promptly and in any event within three calendar days after
becoming aware of the occurrence of (i) any Default or Event of Default, (ii)
the commencement of any material litigation against, by or affecting the Company
or any of its Restricted Subsidiaries, and any material developments therein, or
(iii) entering into any material Contractual Obligation that is not entered into
in the ordinary course of business or (iv) any development in the business or
affairs of the Company or any of its Restricted Subsidiaries which has resulted
in or which is likely in the reasonable judgment of the Company, to result in a
Material Adverse Effect, a statement of a Responsible Officer of the Company
setting forth details of each such Default or Event of Default or such
litigation, material Contractual Obligation or development and the action which
the Company or such Subsidiary, as the case may be, has taken and proposes to
take with respect thereto;

          (b) As soon as available and in any event within 45 days after the end
of each of the first three Fiscal Quarters of the Company, the consolidated and
consolidating balance sheets of the Company and its Restricted Subsidiaries as
of the end of such Fiscal Quarter, and the related consolidated and
consolidating statements of income, retained earnings and changes in cash flows
for the period commencing at the end of the previous Fiscal Year and ending with
the end of such quarter, setting forth in each case in comparative form the
corresponding figures for the corresponding date or period of the preceding
Fiscal Year, all in reasonable detail and duly certified (subject to year-end
audit adjustments) by the Chief Financial Officer or Treasurer of the Company as
having been prepared in accordance with GAAP, together with a certificate of a
Responsible Officer of the Company stating (i) that no Default or Event of
Default has occurred and is continuing or, if a Default or Event of Default has
occurred and is continuing, a statement setting forth the details thereof and
the action which the Company has taken and proposes to take with respect
thereto, and (ii) that a computation (which computation shall accompany such
certificate and shall be in reasonable detail) showing a calculation of Leverage
Ratio for purposes of determining the Applicable Margin and the Applicable
Unused Commitment Fee Rate and compliance with Section 6.1 is in conformity with
the terms of this Agreement;

          (c) As soon as available and in any event within 90 days after the end
of each Fiscal Year, a copy of the consolidated balance sheet of the Company and
its Subsidiaries as of the end of such Fiscal Year and the related consolidated
statements of income, retained earnings and changes in cash flows of the Company
and its Subsidiaries for such Fiscal Year, with a customary audit report of
PricewaterhouseCoopers LLP, or other independent certified public accountants
selected by the Company and acceptable to the Administrative Agent, without
qualifications unacceptable to the Administrative Agent, and including a
unaudited schedule in form acceptable to the Administrative Agent prepared by
such accountants setting forth the consolidating balance sheet of the Company
and its Restricted Subsidiaries as of the end of such Fiscal Year and the
related consolidating statements of income, retained earnings and changes in
cash flows of the Company and its Restricted Subsidiaries for such Fiscal Year,
together with a certificate of a Responsible Officer of the Company stating (A)
that no Default or Event of

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Default has occurred and is continuing and, if such a Default or Event of
Default exists and is continuing, a statement setting forth the nature and
status thereof, and (B) that a computation (which computation shall accompany
such certificate and shall be in reasonable detail) showing a calculation of
Leverage Ratio for purposes of determining the Applicable Margin and the
Applicable Unused Commitment Fee Rate and compliance with Section 6.1 is in
conformity with the terms of this Agreement and showing such other matters as
required by the Administrative Agent from time to time, all in form and
substance satisfactory to the Administrative Agent;

          (d) Promptly after the sending or filing thereof, copies of all
reports, proxy statements and financial statements which the Company or any of
its Subsidiaries sends to or files with any of their respective security holders
or any securities exchange or the Securities and Exchange Commission or any
successor agency thereof;

          (e) As soon as available and in any event at least 30 days prior to
the end of each Fiscal Year, copies of preliminary capital and operating budgets
and financial forecasts for the Company and its Subsidiaries for each Fiscal
Year through the Term Loan Maturity Date, and as soon as available in any event
within 30 days after the end of each Fiscal Year of the Company, copies of the
final capital and operating budgets and financial forecasts for the Company and
its Subsidiaries for such Fiscal Year, in each case prepared on both a
consolidated and consolidating basis and for a twelve-month period (or more
frequent period if so prepared by the Company in the ordinary course) by or
under the direction of the Chief Financial Officer or Treasurer of the Company
in form and detail satisfactory to the Administrative Agent, and, promptly and
in any event within 10 days after preparation thereof, copies of any material
revisions to such budgets and forecasts;

          (f) Promptly and in any event within 10 calendar days after receiving
or becoming aware thereof (A) a copy of any notice of intent to terminate any
Title IV Plan of the Company, any of its Subsidiaries or any ERISA Affiliate
filed with the PBGC, (B) a statement of the Chief Financial Officer or Treasurer
of the Company setting forth the details of the occurrence of any Reportable
Event with respect to any such Title IV Plan, (C) a copy of any notice that the
Company, any of its Subsidiaries or any ERISA Affiliate may receive from the
PBGC relating to the intention of the PBGC to terminate any such Title IV Plan
or to appoint a trustee to administer any such Title IV Plan, or (D) a copy of
any notice of failure to make a required installment or other payment within the
meaning of Section 412(n) of the Code or Section 302(f) of ERISA with respect to
any such Title IV Plan;

          (g) Promptly and in any event within 10 days after receipt, a copy of
any management letter or comparable analysis prepared by the auditors for the
Company or any of its Subsidiaries;

          (h) Promptly after the sending or filing thereof, copies of all
reports, financial statements and other documents which the Company or any of
its Subsidiaries is required to deliver pursuant to the Mexican Facility
Documents;

          (i) Promptly, such other information respecting the business,
properties, operations or condition, financial or otherwise, of the Company or
any of its Restricted Subsidiaries or any of its Unrestricted Subsidiaries with
respect to which the Company or any of its Restricted Subsidiaries has any
Guaranty Obligation or other contingent liability as any Lender or the
Administrative Agent may from time to time reasonably request;

          (j) Promptly after the commencement thereof, the Company shall give
the Administrative Agent written notice of the commencement of all actions,
suits and proceedings before any domestic or foreign Governmental Authority or
arbitrator, affecting any Borrower or any of the Company's Subsidiaries, which
in the reasonable judgment of the Company or any Subsidiary, expose any Borrower
or any Subsidiary to liability in an amount aggregating $200,000 or more or
which, if adversely determined, could have a Material Adverse Effect;

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          (k) Promptly after becoming aware of the same, the Company shall give
the Administrative Agent written notice of (a) any material labor dispute to
which any Borrower or any of the Company's Subsidiaries is or may become a
party, including any strikes, lockouts or other disputes relating to any of such
Person's plants and other facilities, and (b) any Worker Adjustment and
Retraining Notification Act or related liability incurred with respect to the
closing of any plant or other facility of any of such Person;

          (l) Upon the request of any Lender, through the Administrative Agent,
the Company will provide copies of all federal, state, local and foreign tax
returns and reports filed by the Company or any of its Subsidiaries in respect
of taxes measured by income (excluding sales, use and like taxes);

          (m) Prior to any Asset Sale anticipated to generate in excess of
$2,000,000 (or its Dollar Equivalent) in Net Cash Proceeds, the Company shall
send the Administrative Agent a notice (a) describing such Asset Sale or the
nature and material terms and conditions of such transaction and (b) stating the
estimated Net Cash Proceeds anticipated to be received by the Company or any of
its Subsidiaries;

          (n) The Company shall provide written notice to the Administrative
Agent promptly and in any event within 10 days of any Borrower or any Subsidiary
learning of any of the following:

              (i)   that any Loan Party is or may be liable to any Person as a
     result of a Release or threatened Release which could reasonably be
     expected to subject such Loan Party to Environmental Liabilities and Costs
     of $100,000 or more;

              (ii)  the receipt by any Loan Party of notification that any real
     or personal property of such Loan Party is or is reasonably likely to be
     subject to any Environmental Lien;

              (iii) the receipt by any Loan Party of any notice of violation of
     or potential liability under, or knowledge by such Loan Party that there
     exists a condition which could reasonably be expected to result in a
     violation of or liability under any Environmental Law, except for
     violations and liabilities the consequence of which in the aggregate would
     have no reasonable likelihood of subjecting the Loan Parties collectively
     to Environmental Liabilities and Costs of $100,000 or more;

              (iv)  the commencement of any judicial or administrative
     proceeding or investigation alleging a violation of or liability under any
     Environmental Law, which in the aggregate, if adversely determined, would
     have a reasonable likelihood of subjecting the Loan Parties collectively to
     Environmental Liabilities and Costs of $100,000 or more;

              (v)   any proposed acquisition of stock, assets or real estate, or
     any proposed leasing of property, or any other action by any Loan Party or
     any of its Subsidiaries other than those the consequences of which in the
     aggregate have reasonable likelihood of subjecting the Loan Parties
     collectively to Environmental Liabilities and Costs of $100,000 or less;

              (vi)  any proposed action by any Loan Party or any of its
     Subsidiaries or any proposed change in Environmental Laws which in the
     aggregate have a reasonable likelihood of requiring the Loan Parties to
     obtain additional environmental, health or safety Permits or make
     additional capital improvements to obtain compliance with Environmental
     Laws that in the aggregate would cost $100,000 or more or subject the Loan
     Parties to additional Environmental Liabilities and Costs of $100,000 or
     more; and

              (vii) upon written request by any Lender through the
     Administrative Agent, a report providing an update of the status of any
     environmental, health or safety compliance, hazard or liability issue
     identified in any notice or report delivered pursuant to this Agreement.

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          SECTION 5.5. ACCOUNTING; ACCESS TO RECORDS, BOOKS, ETC. Maintain a
system of accounting established and administered in accordance with sound
business practices to permit preparation of financial statements in accordance
with GAAP and to comply with the requirements of this Agreement and, at any
reasonable time and from time to time, (i) during regular business hours, permit
any Lender or the Administrative Agent or any agents or representatives thereof
to examine and make copies of and abstracts from the records and books of
account of, and visit the properties of, the Company and its Subsidiaries, and
to discuss the affairs, finances and accounts of the Company and its
Subsidiaries with their respective directors, officers, employees and
independent auditors, and by this provision the Company hereby authorizes such
Persons to discuss such affairs, finances and accounts with any Lender or the
Administrative Agent and (ii) during regular business hours, permit the
Administrative Agent or any of its agents or representatives to conduct a
comprehensive field audit of its and its Subsidiaries' books, records,
properties and assets, including without limitation all collateral subject to
the Collateral Documents, provided that prior to an Event of Default no more
than one such field audit (exclusive of any field audits prior to the Effective
Date, which are at the expense of the Borrowers) per fiscal year shall be at the
expense of the Borrowers.

          SECTION 5.6. MAINTENANCE OF BUSINESS LINES. Maintain all principal
lines of business in which the Company or any of its Restricted Subsidiaries is
presently engaged.

          SECTION 5.7. ENVIRONMENTAL MATTERS.

          (a) The Company shall, and shall cause any Subsidiary to, comply in
all material respects with Environmental Laws and, without limiting the
foregoing, the Company shall, at its sole cost and expense, upon receipt of any
notification or otherwise obtaining knowledge of any Release or other event that
has any reasonable likelihood of resulting in the Company and its Subsidiaries
incurring Environmental Liabilities and Costs in excess of $100,000, (i) conduct
or pay for consultants to conduct, tests or assessments of environmental
conditions at such operations or properties, including the investigation and
testing of subsurface conditions and (ii) take such Remedial Action,
investigational or other action as required by Environmental Laws or as any
Governmental Authority requires or as is appropriate and consistent with good
business practice to address the Release or event; subject to Loan Party's right
to appeal or contest such requirements.

          (b) The Company shall conduct periodic reviews of its operations and
properties and those of its Subsidiaries to ensure compliance with the
environmental provisions of this Agreement.

          (c) The Company and its Subsidiaries shall cause any real property
owned, operated or leased by the Company or its Subsidiaries (the "Property") to
be kept free of Hazardous Materials except to the extent such Hazardous
Materials are stored and/or used in compliance with applicable Environmental
Laws and except as provided on Schedule 4.14 and, without limiting the
foregoing, not cause or permit such Property or any portion thereof to be used
to generate, manufacture, refine, transport, treat, store, handle, dispose of,
transfer, produce or process Hazardous Materials except in compliance with all
applicable Environmental Laws; and not cause or permit, as a result of any
intentional or unintentional act or omission on the part of the Company, its
Subsidiaries, or any tenant, subtenant, or occupant, a Release of Hazardous
Materials on, under or about the Property or any portion thereof or onto any
other contiguous property in violation of Environmental Laws, further, the
Company and its Subsidiaries shall take such Remedial Action, investigational or
other action as required by Environmental Laws or as any Governmental Authority
requires or as is appropriate and consistent with good business practice to
address those matters disclosed on Schedule 4.14.

          (d) The Company shall provide the Administrative Agent with copies of
all reports, investigations, sampling results or other written documentation
prepared by or for the Company or its subsidiaries relating to Releases of
Hazardous Materials, to the extent requested by the Administrative Agent.

                                       69

<PAGE>   75

          (e) If the Company fails to conduct an assessment, investigation or
remediation required under this Section 5.7 to the satisfaction of the
Administrative Agent and the Requisite Lenders or fails to provide
Administrative Agent with copies of the written documentation referenced above,
the Administrative Agent may at its option and at the expense of Company conduct
such assessment, investigation, or remediation; provided that Agent provides
notice to Company of its intent to conduct such work.

          SECTION 5.8. ADDITIONAL COLLATERAL AND GUARANTIES.

          (a) At least 15 Business Days prior to (i) entering into any real
property lease (other than a renewal of an existing real property lease) for the
principal place of business and chief executive office of the Company or any
other Restricted Subsidiary or any other real property lease (including any
renewal) in which the annual rental payments are anticipated to equal or exceed
$1,000,000 or (ii) acquiring of any material owned real property, the Company
shall, and shall cause such Restricted Subsidiary to, provide the Administrative
Agent written notice thereof. Upon written request of the Administrative Agent,
the Company shall, and shall cause such Restricted Subsidiary to, execute and
deliver to the Administrative Agent, immediately upon the acquisition of any
such leased or owned real property, a mortgage, deed of trust, assignment or
other appropriate instrument evidencing a Lien in favor of the Collateral Agent
for the benefit of the Secured Parties, upon any such lease or real property,
together with such title policies, certified surveys, and local counsel opinions
with respect thereto and such other agreements, documents and instruments which
the Administrative Agent deems necessary or desirable, the same to be in form
and substance satisfactory to the Administrative Agent and to be subject only to
(i) Permitted Liens and (ii) such other Liens as the Administrative Agent may
reasonably approve.

          (b) To the extent not delivered to the Administrative Agent on or
before the Effective Date, the Borrowers agree promptly to (i) execute and
deliver to the Administrative Agent such amendments to the Collateral Documents
as the Administrative Agent deems necessary or advisable in order to grant to
the Collateral Agent, for the benefit of the Secured Parties, a perfected first
priority security interest in the Stock and Stock Equivalents and other debt
Securities of any Material Subsidiary which are owned by the Borrowers or any of
its Restricted Subsidiaries and requested to be pledged by the Administrative
Agent; provided, however, that the Stock of any Restricted Subsidiary shall be
pledged to the Collateral Agent only to the extent such pledge of Stock would
not result in material adverse tax consequences to the Company and its
Restricted Subsidiaries, taken as a whole; provided further, however, that prior
to the Canadian Subsidiary Release Date, 100% of the Stock of any Restricted
Subsidiary that is a Canadian Subsidiary shall be pledged pursuant to this
clause (b), (ii) deliver to the Administrative Agent the certificates (if any)
representing such Stock and Stock Equivalents and other debt Securities,
together with (A) in the case of such certificated Stock and Stock Equivalents,
undated stock powers endorsed in blank, and (B) in the case of such certificated
debt Securities, endorsed in blank, in each case executed and delivered by a
Responsible Officer of the Borrowers or such Subsidiary, as the case may be,
(iii) in the case of any such new Material Subsidiary that is a Domestic
Subsidiary cause such new Material Subsidiary (A) to become a party to the
Guaranty and the applicable Collateral Documents and (B) to take such actions
necessary or advisable to grant to the Collateral Agent for the benefit of the
Secured Parties a perfected security interest in the Collateral described in the
Collateral Documents with respect to such new Material Subsidiary, including the
filing of Uniform Commercial Code financing statements in such jurisdictions as
may be required by the Collateral Documents or by law or as may be reasonably
requested by the Administrative Agent, (iv) in the case of any Restricted
Subsidiary acquired pursuant to Section 6.9(a), take such actions necessary or
advisable to grant to the Collateral Agent for the benefit of the Secured
Parties a perfected security interest in the Stock and Stock Equivalents, other
debt Securities and property pledged to the Company pursuant to the provisions
of Section 6.9(a), as may be reasonably requested by the Administrative Agent
and (v) if requested by the Administrative Agent, deliver to the Administrative
Agent and Collateral Agent legal opinions relating to the matters described
above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent, notwithstanding the
foregoing, on the later of (x) the thirtieth day after the Effective Date, or
such later date as consented to by the Administrative Agent and (y) the

                                       70

<PAGE>   76

closing of the Aries Acquisition, OASP II, Inc. shall pledge all of the Stock
and Stock Equivalents and other debt Securities of the Acquirer to the
Collateral Agent pursuant to the provisions of Section 6.9(b).

          SECTION 5.9. TERMS OF OTHER INDEBTEDNESS. If at any time any Borrower
or Guarantor shall enter into or be a party to any instrument or agreement with
respect to any Indebtedness which in the aggregate, together with any related
Indebtedness, exceeds $500,000, including all such instruments or agreements in
existence as of the date hereof and all such instruments or agreements entered
into after the date hereof, relating to or amending any terms or conditions
applicable to any of such Indebtedness which includes covenants, terms,
conditions or defaults not substantially provided for in this Agreement or more
favorable to the lender or lenders thereunder than those provided for in this
Agreement, then the Company shall promptly so advise the Administrative Agent
and the Lenders. Thereupon, if the Administrative Agent shall request, upon
notice to the Borrowers, the Administrative Agent and the Lenders shall enter
into an amendment to this Agreement or an additional agreement (as the
Administrative Agent may request), providing for substantially the same
covenants, terms, conditions and defaults as those provided for in such
instrument or agreement to the extent required and as may be selected by the
Administrative Agent. In addition to the foregoing, any covenants or defaults or
similar provisions (which include without limitation any provisions requiring
any mandatory prepayments or defeasance under the Senior Subordinated Debt
Documents or the Mexican Facility Documents) contained in any Senior
Subordinated Debt Document or Mexican Facility Documents not substantially
provided for in this Agreement or more favorable to the holders of Subordinated
Debt or Mexican Facility Obligations issued in connection therewith are hereby
incorporated by reference into this Agreement to the same extent as if set forth
fully herein, and no subsequent amendment, waiver, termination or modification
thereof shall affect any such covenants, terms, conditions or defaults as
incorporated herein.

          SECTION 5.10. RESTRICTED AND UNRESTRICTED SUBSIDIARIES. No Borrower or
any Restricted Subsidiary of the Company shall be liable at any time, directly
or indirectly, for any of the Indebtedness or other liabilities of any such
Unrestricted Subsidiary or for any Guaranty Obligation with respect to any
Unrestricted Subsidiary except as permitted by Section 6.2. No Restricted
Subsidiary may be designated as an Unrestricted Subsidiary at any time without
the prior written approval of the Administrative Agent and the Requisite
Lenders. Any Unrestricted Subsidiary may be designated as a Restricted
Subsidiary by the Company at any time provided that such designation is approved
by the Administrative Agent. Neither any Mexican Subsidiary, the Danish Holding
Company, the French Holding Company, Wackenhut, Cofimeta nor any of their
Subsidiaries is or will be a guarantor or otherwise directly or contingently
liable for any of the Indebtedness or other obligations pursuant to the Senior
Subordinated Debt Documents, and the Borrowers are and will be at all times in
compliance with all terms and conditions under the Senior Subordinated Debt
Documents.

          SECTION 5.11. FURTHER ASSURANCES. Execute and deliver, and cause each
Restricted Subsidiary of the Company to execute and deliver, within 30 days
after request therefor by the Requisite Lenders or the Administrative Agent, all
further instruments and documents and take all further action that may be
necessary or desirable, or that the Administrative Agent may request, in order
to give effect to, and to aid in the exercise and enforcement of the rights and
remedies of the Lenders, the Administrative Agent and the Collateral Agent
under, the Loan Documents, including without limitation causing each lessor of
real property to the Company or any of its Restricted Subsidiaries to execute
and deliver to the Administrative Agent, prior to or upon the commencement of
any tenancy, an agreement in form and substance acceptable to the Lenders and
the Administrative Agent duly executed on behalf of such lessor waiving any
distraint, lien and similar rights with respect to any property subject to the
Collateral Documents and agreeing to permit the Lenders and the Collateral Agent
to enter such premises in connection therewith. The Company further agrees to
take all necessary action to ensure that the Administrative Agent and the
Lenders may rely on the audited financial statements of the Company and its
Subsidiaries, including without limitation any necessary acknowledgments or
other consents from the Company's auditors as may be required under applicable
law.
<PAGE>   77
          SECTION 5.12. POST CLOSING MATTERS. Each Borrower shall, and shall
cause each of its Restricted Subsidiaries to, satisfy the requirements set forth
on Schedule 5.12 on or before the date set forth opposite such requirement or
such later date as consented to by the Administrative Agent.

                                   ARTICLE VI

                               NEGATIVE COVENANTS

          Until the termination of all Commitments and Letters of Credit and
thereafter until payment in full of the Obligations of the Borrowers under this
Agreement, any Hedging Contract with any Lender and any other Loan Document, the
Company, and as applicable, each of the Borrowers, agree that, unless the
Requisite Lenders shall otherwise consent in writing, it shall not, and shall
not permit any of its Restricted Subsidiaries to:

          SECTION 6.1. FINANCIAL COVENANTS. For purposes of computing the
Leverage Ratio and the Interest Coverage Ratio, pursuant to this Section 6.1,
such ratios (and any financial calculations or components required to be made or
included therein) shall be determined on a Pro Forma Basis.

          (a) Leverage Ratio. Fail to maintain a Leverage Ratio, as determined
as of the last day of each Fiscal Quarter set forth below, for the four Fiscal
Quarters ending on such day, of not more than the maximum ratio set forth
opposite such Fiscal Quarter:
<TABLE>
<CAPTION>
---------------------------------------- --------------------------
         FISCAL QUARTER ENDING            MAXIMUM LEVERAGE RATIO
---------------------------------------- --------------------------
<S>                                      <C>
         September 30, 2000                      5.25 to 1
---------------------------------------- --------------------------
         December 31, 2000                       5.25 to 1
---------------------------------------- --------------------------
         March 31, 2001                          5.00 to 1
---------------------------------------- --------------------------
         June 30, 2001                           5.00 to 1
---------------------------------------- --------------------------
         September 30, 2001                      5.00 to 1
---------------------------------------- --------------------------
         December 31, 2001                       4.75 to 1
---------------------------------------- --------------------------
         March 31, 2002                          4.50 to 1
---------------------------------------- --------------------------
         June 30, 2002                           4.50 to 1
---------------------------------------- --------------------------
         September 30, 2002                      4.50 to 1
---------------------------------------- --------------------------
         December 31, 2002                       4.50 to 1
---------------------------------------- --------------------------
         March 31, 2003                          4.25 to 1
---------------------------------------- --------------------------
         June 30, 2003                           4.25 to 1
---------------------------------------- --------------------------
         September 30, 2003                      4.25 to 1
---------------------------------------- --------------------------
         December 31, 2003                       4.25 to 1
---------------------------------------- --------------------------
</TABLE>

                                       72
<PAGE>   78
<TABLE>
<S>                                      <C>
         March 31, 2004                          4.00 to 1
---------------------------------------- --------------------------
         June 30, 2004                           4.00 to 1
---------------------------------------- --------------------------
         September 30, 2004                      4.00 to 1
---------------------------------------- --------------------------
         December 31, 2004                       4.00 to 1
---------------------------------------- --------------------------
         March 31, 2005                          3.75 to 1
---------------------------------------- --------------------------
         June 30, 2005                           3.75 to 1
---------------------------------------- --------------------------
</TABLE>

          (b) Interest Coverage Ratio. Fail to maintain an Interest Coverage
Ratio, as determined as of the last day of each Fiscal Quarter set forth below,
for the four Fiscal Quarters ending on such day, of at least the minimum ratio
set forth opposite such Fiscal Quarter:
<TABLE>
<CAPTION>
--------------------------------------- --------------------------
        FISCAL QUARTER ENDING               MINIMUM INTEREST
                                             COVERAGE RATIO
--------------------------------------- --------------------------
<S>                                     <C>
         September 30, 2000                     2.00 to 1
--------------------------------------- --------------------------
         December 31, 2000                      2.00 to 1
--------------------------------------- --------------------------
         March 31, 2001                         2.00 to 1
--------------------------------------- --------------------------
         June 30, 2001                          2.00 to 1
--------------------------------------- --------------------------
         September 30, 2001                     2.10 to 1
--------------------------------------- --------------------------
         December 31, 2001                      2.10 to 1
--------------------------------------- --------------------------
         March 31, 2002                         2.15 to 1
--------------------------------------- --------------------------
         June 30, 2002                          2.25 to 1
--------------------------------------- --------------------------
         September 30, 2002                     2.25 to 1
--------------------------------------- --------------------------
         December 31, 2002                      2.25 to 1
--------------------------------------- --------------------------
         March 31, 2003                         2.35 to 1
--------------------------------------- --------------------------
         June 30, 2003                          2.50 to 1
--------------------------------------- --------------------------
         September 30, 2003                     2.50 to 1
--------------------------------------- --------------------------
         December 31, 2003                      2.50 to 1
--------------------------------------- --------------------------
         March 31, 2004                         2.50 to 1
--------------------------------------- --------------------------
         June 30, 2004                          2.75 to 1
--------------------------------------- --------------------------
         September 30, 2004                     2.75 to 1
--------------------------------------- --------------------------
</TABLE>

                                       73
<PAGE>   79

<TABLE>
<S>                                     <C>
         December 31, 2004                      2.75 to 1
--------------------------------------- --------------------------
         March 31, 2005                         2.75 to 1
--------------------------------------- --------------------------
         June 30, 2005                          3.00 to 1
--------------------------------------- --------------------------
</TABLE>

          (c) Capital Expenditures. Acquire or contract to acquire any fixed
asset or make any other Capital Expenditure if the aggregate purchase price and
other acquisition costs of all such fixed assets acquired and other Capital
Expenditures made by the Company or any of its Restricted Subsidiaries during
any Fiscal Year set forth below would exceed, on a consolidated basis, the
amount set forth opposite such Fiscal Year, plus the sum of (i) 20% of the net
book value, or, if appraisals of such fixed assets have been obtained, 15% of
the orderly liquidation value of such fixed assets which consist of equipment
and of the fair market value of real property which consists of real estate (in
each case, as determined by an appraisal acceptable to the Administrative Agent)
acquired in a Permitted Acquisition (other than the Aries Acquisition), to be
added as of the effective date of such Acquisition (and on a pro rata basis for
the Fiscal Year in which such Acquisition occurs), plus (ii) the amount of
Capital Expenditures allowed for the previous Fiscal Year (without giving effect
to any increase in the amount thereof caused by this clause (ii)), minus the
amount of actual Capital Expenditures for the previous Fiscal Year:
<TABLE>
<CAPTION>
--------------------------------------- -------------------------
          FISCAL YEAR ENDING                 MAXIMUM CAPITAL
                                               EXPENDITURE
--------------------------------------- -------------------------
<S>                                     <C>
            March 31, 2001                    $65,000,000
--------------------------------------- -------------------------
            March 31, 2002                    $65,000,000
--------------------------------------- -------------------------
            March 31, 2003                    $70,000,000
--------------------------------------- -------------------------
            March 31, 2004                    $75,000,000
--------------------------------------- -------------------------
            March 31, 2005                    $80,000,000
 --------------------------------------- -------------------------
</TABLE>

          SECTION 6.2. INDEBTEDNESS. Create, incur, assume or in any manner
become liable in respect of, or suffer to exist, any Indebtedness other than:

          (a) The Secured Obligations;

          (b) The Indebtedness described in Schedule 6.2, including Guaranty
Obligations, provided that no increase in the principal amount thereof (as such
amount is reduced from time to time) shall be permitted and no modifications of
the terms thereof which would result in an earlier final maturity date or
decreased weighted average life thereof shall be permitted;

          (c) Indebtedness of (i) any Domestic Subsidiary that is a Subsidiary
Guarantor owing to any Borrower or any other Subsidiary Guarantor, (ii) any
Canadian Subsidiary that is a Subsidiary Guarantor owing to any Borrower or any
other Subsidiary Guarantor, (iii) any Foreign Subsidiary (other than a Canadian
Subsidiary) to any other Foreign Subsidiary (other than a Canadian Subsidiary)
and (iv) any Foreign Subsidiary (other than a Canadian Subsidiary) to the
Company; provided, however, that any such Indebtedness owing by any Loan Party
shall be fully subordinated to the Obligations; provided further, however, that
upon the incurrence of Indebtedness described in clauses (iii) and (iv) above,
the conditions of Section 6.9(a), if applicable, shall have been satisfied;

                                       74
<PAGE>   80

          (d) Indebtedness constituting purchase money debt and Capital Leases
in aggregate outstanding principal amount not exceeding $25,000,000 at any time;

          (e) Subordinated Debt under the Senior Subordinated Notes (or any
refinancing of such Senior Subordinated Notes by the Company), and Guaranty
Obligations of the Company's Subsidiaries (other than Foreign Subsidiaries) in
respect of such Subordinated Debt, in an aggregate principal amount not to
exceed $202,000,000; provided, however, prior to the Canadian Subsidiary Release
Date, the Canadian Subsidiaries may incur Guaranty Obligations in respect of the
Senior Subordinated Notes (but not in relation to any refinancing thereof);

          (f) Other Subordinated Debt of the Company and Guaranty Obligations of
the Company's Subsidiaries (other than Foreign Subsidiaries) in respect of such
other Subordinated Debt; provided, however, that (i) both before and after
giving effect to such Subordinated Debt, no Event of Default or Default exists
or would be caused thereby and (ii) after giving effect to such Subordinated
Debt, the Leverage Ratio for the most recently ended Fiscal Quarter for which
Financial Statements have been delivered pursuant to Section 5.4 is no more than
the maximum level permitted under Section 6.1(a) on a Pro Forma Basis;

          (g) Hedging Contracts with any Lender, any Affiliate of a Lender or
other Person acceptable to the Administrative Agent; provided, however, that no
Hedging Contracts shall be entered into for purposes of financial speculation;

          (h) Guarantees by the Company of the Indebtedness of Unrestricted
Subsidiaries to the extent permitted by, and subject to the terms of, Section
6.9(d);

          (i) Indebtedness solely in connection with the factoring of
receivables by European Restricted Subsidiaries or securitization of receivables
by Restricted Subsidiaries, in each case in the ordinary course of business and
on customary terms and conditions; provided, however, that all documentation
providing for such factoring and securitization arrangements shall be in form
and substance acceptable to the Administrative Agent, the obligations thereunder
shall be non-recourse to the Company and its Restricted Subsidiaries and the
aggregate outstanding amount thereof shall not exceed $100,000,000;

          (j) Indebtedness of European Restricted Subsidiaries; provided,
however, that such Indebtedness shall be non-recourse to the Company and its
Restricted Subsidiaries and at any time the aggregate principal amount of all
such Indebtedness is less than $20,000,000;

          (k) Obligations in respective of synthetic leases to the extent
permitted under Section 6.11; and

          (l) Deferred purchase price obligations in the maximum amount of
$15,000,000 arising out of the Aries Acquisition.

          Notwithstanding the above or anything else herein to the contrary,
neither OASP I, OASP II, the Danish Holding Company nor the French Holding
Company shall have any Indebtedness other than a guaranty by OASP I and OASP II
of the Obligations, a subordinated guaranty by OASP I and OASP II in favor of
the holders of the obligations owing under the Senior Subordinated Notes and a
guarantee by the French Holding Company in the amount of 66,000,000 French
Francs of the debt of Cofimeta Defeasance Company incurred in connection with
the closing of purchase of Cofimeta, Indebtedness permitted pursuant to Section
6.2(c) and 6.9(a), (b) and (e)(ii), the deferred purchase price obligations
referred to in Schedule 6.2 and the aggregate amount of the Indebtedness of
Cofimeta and its Subsidiaries shall be limited to (x) existing Indebtedness of
Cofimeta and its Subsidiaries, as reduced from time to time, (y) other
Indebtedness allowed under Section 6.2(i) and (z) future unsecured and

                                       75
<PAGE>   81

secured (to the extent secured by assets acceptable to the Administrative Agent)
Indebtedness for working capital and Capital Expenditures.

          SECTION 6.3. LIENS. Create, incur or suffer to exist any Lien on any
of the assets, rights, revenues or property, real, personal or mixed, tangible
or intangible, whether now owned or hereafter acquired, of the Company or any of
its Restricted Subsidiaries, other than:

          (a) Customary Permitted Liens;

          (b) Liens created pursuant to the Collateral Documents and Liens
expressly permitted by the Collateral Documents;

          (c) Each Lien described in Schedule 6.3 may be suffered to exist upon
the same terms as those existing on the date hereof, but no increase in the
principal amount thereof shall be permitted;

          (d) Any Lien created to secure payment of a portion of the purchase
price of, or existing at the time of acquisition of, any tangible fixed asset
acquired by the Company or any of its Restricted Subsidiaries may be created or
suffered to exist upon such fixed asset if the outstanding principal amount of
the Indebtedness secured by such Lien does not at any time exceed 100% of the
purchase price paid by the Company or such Restricted Subsidiary for such fixed
asset and the aggregate principal amount of all Indebtedness secured by such
Liens does not exceed the amount permitted under Section 6.2(d); provided,
however, that such Lien does not encumber any other asset at any time owned by
the Company or such Restricted Subsidiary, and that not more than one such Lien
shall encumber such fixed asset at any one time and neither OASP I, OASP II, the
Danish Holding Company nor the French Holding Company shall incur or permit or
suffer any such Lien to exist;

          (e) The interest or title of a lessor under any operating lease
otherwise permitted under this Agreement with respect to the property subject to
such lease to the extent performance of the obligations of the Company or its
Restricted Subsidiary thereunder are not delinquent;

          (f) Liens on accounts receivable of European Restricted Subsidiaries
securing the Indebtedness permitted by Section 6.2(i) and other Liens on the
assets of Cofimeta and its Subsidiaries to the extent securing Indebtedness
permitted by clause (z) of the last paragraph of Section 6.2;

          (g) Liens securing guarantees of synthetic leases to the extent
permitted under Section 6.11, subject to intercreditor arrangements acceptable
to the Administrative Agent;

          (h) any Lien securing the renewal, extension, refinancing or refunding
of any Indebtedness secured by any Lien permitted by clauses (c), (d) or (h) of
this Section 6.3 without any change in the assets subject to such Lien; and

          (i) Liens securing Indebtedness permitted pursuant to Section 6.2(c),
provided that any such Liens are assigned to the Collateral Agent pursuant to
the Collateral Documents.

          SECTION 6.4. MERGER; ACQUISITIONS; ETC. Purchase or otherwise acquire,
whether in one or a series of transactions, directly or indirectly, by merger or
otherwise, all or a substantial portion of the business assets, rights, revenues
or property, real, personal or mixed, tangible or intangible, of any Person, or
all or a substantial portion of the Stock of any other Person; nor merge or
consolidate or amalgamate with any other Person or take any other action having
a similar effect (any such transaction being an "Acquisition"); provided,
however, that this Section 6.4 shall not prohibit any Acquisition if:

               (i) such Acquisition involves the Company, the Company shall be
          the surviving or continuing corporation thereof;

                                       76
<PAGE>   82

               (ii) immediately before and after giving effect to such
          Acquisition, no Default or Event of Default shall exist or shall have
          occurred and be continuing and the representations and warranties
          contained in Article IV and in the other Loan Documents shall be true
          and correct on and as of the date thereof (both before and after such
          Acquisition is consummated) as if made on the date such Acquisition is
          consummated;

               (iii) at least 10 Business Days' prior to the consummation of
          such Acquisition, the Company shall have provided to the Lenders an
          opinion of counsel and a certificate of the Chief Financial Officer or
          Treasurer of the Company (attaching pro forma computations acceptable
          to the Administrative Agent to demonstrate compliance with all
          financial covenants hereunder on a Pro Forma Basis), each stating that
          such Acquisition complies with this Section 6.4, all laws and
          regulations and that any other conditions under this Agreement
          relating to such transaction have been satisfied, and such certificate
          shall contain such other information and certifications as requested
          by the Administrative Agent and be in form and substance satisfactory
          to the Administrative Agent;

               (iv) at least 10 Business Days' prior to the consummation of such
          Acquisition, the Company shall have delivered all acquisition
          documents and other agreements and documents relating to such
          Acquisition, and the Administrative Agent shall have completed a
          satisfactory review thereof and completed such other due diligence
          satisfactory to the Administrative Agent; provided, however, that if
          such Acquisition is being done by an Unrestricted Subsidiary or
          involves Unrestricted Subsidiaries only, then the requirements of this
          clause (iv) will be satisfied if the Company provides the Lenders with
          a certificate representing that neither the Company nor any Restricted
          Subsidiary shall be liable, directly or indirectly, for any of the
          Indebtedness or other liabilities of such Unrestricted Subsidiary or
          for any Guaranty Obligation with respect to any such Unrestricted
          Subsidiary except as permitted by Section 6.2, provided further,
          however that if such Acquisition is being done by a Restricted
          Subsidiary, the provisions of Section 6.9(a), if applicable, shall
          have been satisfied;

               (v) the Company shall, at least 10 Business Days prior to the
          consummation of such Acquisition, provide such other certificates and
          documents as requested by the Administrative Agent, in form and
          substance satisfactory to the Administrative Agent;

               (vi) the target of such Acquisition is in the same line of
          business as the Company;

               (vii) the Board of Directors (or similar governing body) and the
          management of the target of such Acquisition has approved such
          Acquisition; and

               (viii) the aggregate consideration paid or payable in connection
          with all Acquisitions permitted by this proviso (excluding the Aries
          Acquisition and amounts paid or payable solely by Unrestricted
          Subsidiaries and investments and other transactions permitted by
          Section 6.9(d)), including any Indebtedness assumed in connection
          therewith or guarantees or other liabilities incurred in connection
          therewith, shall not exceed $150,000,000.

          Notwithstanding the foregoing, (x) the requirements listed in clauses
          (ii), (iii), (iv), (v) and (vii) of this Section 6.4 shall not be
          required to be satisfied in connection with any acquisition done
          solely by an Unrestricted Subsidiary; provided, however, that the
          terms of Section 6.2, Section 6.9 and all other terms and provisions
          hereof shall be applicable, (y) no Mexican Subsidiary will make,
          directly or indirectly, any Acquisition or otherwise assist or be
          involved in any Acquisition.

          SECTION 6.5. DISPOSITION OF ASSETS; ETC. Consummate any Asset Sale,
and shall not permit or suffer any Restricted Subsidiary to consummate any Asset
Sale; provided, however, that this Section 6.5 shall not prohibit:

                                       77
<PAGE>   83

               (i)   any Asset Sale if the consolidated book value (disregarding
          any write-downs of such book value other than ordinary depreciation
          and amortization) of all of the business, assets, rights, revenues and
          property of the Company and its Restricted Subsidiaries disposed of in
          any consecutive twelve-month period shall be less than 10% of the
          consolidated book value of the assets of the Company and its
          Restricted Subsidiaries as of the beginning of such twelve month
          period and the aggregate book value of all assets disposed of after
          the Effective Date shall be less than 25% of the consolidated book
          value of assets of the Company and its Restricted Subsidiaries at the
          time of any such Asset Sale and if, immediately after such
          transaction, no Default or Event of Default shall exist or shall have
          occurred and be continuing;

               (ii)  Asset Sales as to which proceeds are used within 180 days
          to purchase or construct assets of at least equivalent value to those
          sold, provided that the Company and its Subsidiaries may not sell a
          substantial portion of their assets pursuant to this clause (ii);

               (iii) the transfer of assets (i) from any Restricted Subsidiary
          to the Company or any Subsidiary Guarantor, (ii) from the Company to
          any Subsidiary Guarantor, (iii) from any Canadian Borrower to a
          Borrower or a Subsidiary Guarantor, (iv) from a Foreign Subsidiary
          (other than a Canadian Borrower) to any Foreign Subsidiary, any
          portion of the Stock of which has been pledged to the Administrative
          Agent pursuant to the Collateral Documents;

               (iv)  the transfer of assets with an aggregate fair market value
          of less than $1,000,000, by the Company or any Restricted Subsidiary
          to an Unrestricted Subsidiary; and

               (v)   the transfer of assets in connection with factoring or
          securitization of receivables permitted by Section 6.2(i);

               (vi)  the transfer of the loan or advance, made by the Company
          and evidenced by a promissory note pursuant to Section 6.9(b), by the
          Company to the FCC pursuant to the transactions described on Schedule
          6.9(e)(ii).

provided, however, in the case of any of the foregoing permitted Asset Sales,
the Company shall not, and shall not permit any of its Restricted Subsidiaries
to, consummate an Asset Sale, other than pursuant to clauses (iii) or (iv) of
this Section 6.5, unless (A) the Company (or the Subsidiary, as the case may be)
receives consideration at the time of such Asset Sale at least equal to the Fair
Market Value of the assets and (B) at least 75% of the consideration therefor
received by the Company or such Subsidiary is in the form of cash; provided,
however, that Cash Equivalents and the assumption of Indebtedness of the Company
or any Guarantor and the unconditional release of the Company or such Guarantor
from such Indebtedness in connection with such Asset Sale, in each case
acceptable to the Administrative Agent, shall be considered cash for purposes of
this Section 6.5; provided further, that the amount of (x) any liabilities (as
shown on the Company's or such Subsidiary's most recent balance sheet), of the
Company or any Subsidiary that are assumed by the transferee of any such assets
such that the Company or such Subsidiary have no further liability and (y) any
securities, notes or other obligations received by the Company or any such
Subsidiary from such transferee that are converted by the Company or such
Subsidiary into cash (to the extent of the cash received), shall be deemed to be
cash for purposes of this provision and the definition of Net Cash Proceeds, and
the Administrative Agent promptly shall obtain a first priority security
interest in any non-cash consideration for any Asset Sale.

          SECTION 6.6. NATURE OF BUSINESS. Make any material change in the
nature of its business from that engaged in on the date of this Agreement or
engage in any other businesses or activities other than those described in the
business plan provided to the Lenders.

          SECTION 6.7. DIVIDENDS AND OTHER RESTRICTED PAYMENTS. Directly or
indirectly, declare, order, pay, make or set apart any sum for any Restricted
Payment, except:

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<PAGE>   84

          (a) dividends and distributions on Preferred Stock to the extent
permitted under Section 6.16;

          (b) if no Event of Default or Default exists or would be caused
thereby, dividends and distributions in an aggregate amount not to exceed
$1,000,000 made after the Effective Date;

          (c) dividends and distributions which in aggregate amount do not
exceed 25% of the Net Income accrued during Fiscal Quarters ending after the
Effective Date for which the Leverage Ratio was not greater than 3.00 to 1;
provided, however, that both before and after the making or declaration of such
dividend, payment or other distribution (i) the Leverage Ratio for the most
recently ended Fiscal Quarter for which Financial Statements have been delivered
pursuant to Section 5.4 is not greater than 3.00 to 1 on a Pro Forma Basis and
(ii) no Default or Event of Default shall have occurred or be caused thereby;

          (d) if no Event of Default or Default exists or would be caused
thereby, payments in an aggregate amount not to exceed $2,500,000 in any Fiscal
Year and $5,000,000 in the aggregate, for all employees made after the Effective
Date for the purpose of redeeming the Stock of the Company owned by any
employees of the Company, other than a Permitted Holder, upon the termination of
the employment by the Company or any of its Restricted Subsidiaries of such
employee; provided, however, that (i) any amounts used to redeem such Stock
under this clause (d) shall first reduce the amount allowed or accumulated under
Section 6.7(b) until the amount allowed thereunder is exhausted and then shall
reduce the amount allowed under Section 6.7(c) and (ii) the amounts payable for
the redemption of such Stock will not be paid any sooner or in any greater
amount than contractually required;

          (e) prepayment of the Subordinated Debt in an amount not to exceed
$250,000,000 in connection with the refinancing of the Senior Subordinated
Notes, as long as the incurrence of such Subordinated Debt is permitted under
Section 6.2(e) or (f); and

          (f) any repayment of Indebtedness permitted pursuant to Section
6.2(c).

          SECTION 6.8. ACCOUNTING CHANGES; FISCAL YEAR. Change its (a)
accounting treatment and reporting practices or tax reporting treatment, except
as required by GAAP or any Requirement of Law and disclosed to the Lenders and
the Administrative Agent or (b) Fiscal Year.

          SECTION 6.9. INVESTMENTS. Make or maintain any Investment, or enter
into any joint venture or similar arrangement with any other Person to do any of
the foregoing, except:

          (a) other than as provided in Section 6.9(b) with respect to the Aries
Acquisition, loans and advances to other Restricted Subsidiaries to the extent
the Indebtedness in respect thereof is permitted under Section 6.2(c); provided,
however, that any such Indebtedness incurred pursuant to a loan or advance made
by a Loan Party shall be evidenced by promissory notes payable on demand and in
form and substance satisfactory to the Administrative Agent and such notes shall
be pledged to the Collateral Agent pursuant to the applicable Collateral
Document for the benefit of the Secured Parties; provided further, however, that
if such loan or advance is made by a Loan Party or a Foreign Subsidiary pursuant
to Section 6.2(c)(ii), (iii) or (iv) and the aggregate amount outstanding of all
such loans or advances made to such Restricted Subsidiary by all Loan Parties is
in excess of $5,000,000 for a period of 45 days or more, or if any such loan or
advance is made in order to finance, in whole or in part, a Permitted
Acquisition by a Restricted Subsidiary which, alone, or together with any
related transactions, has a Fair Market Value in excess of $5,000,000, the
Company shall also:

               (i) cause:

                    (A) each Restricted Subsidiary that receives the benefit of
     the loan or advance to grant to the Loan Party which makes such loan or
     advance, as security for such loan or

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<PAGE>   85

     advance, (x) following the Canadian Subsidiary Release Date, with respect
     to loans or advances made pursuant to Section 6.2(c)(ii), a perfected
     second priority security interest in all of such Restricted Subsidiary's
     assets, rights, revenues or property, real, personal or mixed, tangible or
     intangible which constitute "Collateral" (as defined in the Collateral
     Documents executed and delivered by such Restricted Subsidiary) and (y)
     with respect to loans or advances made pursuant to Section 6.2(c)(iii) or
     (iv), a perfected first priority security interest in all Stock and Stock
     Equivalents and other debt Securities held by such Restricted Subsidiary,
     of any other Restricted Subsidiary, including each Restricted Subsidiary
     that was acquired in such Permitted Acquisition;

                    (B) each holder of Stock or Stock Equivalents or other debt
     Securities of the Restricted Subsidiary that is the borrower of such loan
     or advance, to provide a guarantee of such loan or advance in favor of the
     Loan Party which makes such loan or advance and to grant to such Loan
     Party, as security for such loan or advance, (x) following the Canadian
     Subsidiary Release Date, with respect to loans or advances made pursuant to
     Section 6.2(c)(ii), a perfected second priority security interest in all of
     the assets, rights, revenues or property, real, personal or mixed, tangible
     or intangible which constitute "Collateral" (as defined in the Collateral
     Document executed and delivered by such holder of Stock or Stock
     Equivalents or other debt Securities) of such holder of Stock or Stock
     Equivalents or other debt Securities, and (y) with respect to loans or
     advances made pursuant to Section 6.2(c)(iii) or (iv), a perfected first
     priority security interest in the Stock and Stock Equivalents and other
     debt Securities of the Restricted Subsidiary that is the borrower of such
     loan or advance, each of the foregoing to be in form and substance
     satisfactory to the Administrative Agent; provided, however, that the
     Stock, Stock Equivalents or other debt Securities of any Restricted
     Subsidiary shall be pledged to the Company only to the extent such pledge
     of such Stock, Stock Equivalents or other debt Securities would not result
     in material adverse tax consequences to the Company and its Restricted
     Subsidiaries, taken as a whole;

          (ii) cause to be delivered to the Collateral Agent, for the benefit of
     the Secured Parties:

                    (A) following the Canadian Subsidiary Release Date, with
     respect to loans or advances made pursuant to Section 6.2(c)(ii), evidence
     satisfactory to the Administrative Agent that the Loan Party that made the
     loan or advance has a valid and perfected first priority security interest
     in all "Collateral" pledged as required by this Section 6.9(a);

                    (B) with respect to loans or advances made pursuant to
     Section 6.2(c)(iii) or (iv), the certificates (if any) representing the
     Stock and Stock Equivalents and other debt Securities referred to in clause
     (a)(i) above, together with (x) in the case of such certificated Stock and
     Stock Equivalents, undated stock powers endorsed in blank, and (y) in the
     case of such certificated debt Securities, endorsed in blank, in each case
     executed and delivered by a Responsible Officer of the applicable
     Restricted Subsidiary; and

          (iii) if requested by the Administrative Agent, deliver to the
     Administrative Agent and Collateral Agent legal opinions relating to the
     matters described above, which opinions shall be in form and substance, and
     from counsel, reasonably satisfactory to the Administrative Agent,

provided further, however that if any Loan Party to which Stock, Stock
Equivalents or other debt Securities are pledged pursuant to this Section
6.9(a), becomes the holder of such Stock, Stock Equivalents or other debt
Securities by virtue of a foreclosure action with respect to the foregoing loans
or advances, such Stock, Stock Equivalents or other debt Securities shall be
"Additional Pledged Collateral" (as defined in the Pledge and Security
Agreement) and shall be pledged to the Collateral Agent for the benefit of the
Secured Parties pursuant to and subject to the terms of the Pledge and Security
Agreement;

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<PAGE>   86

          (b) loans and advances by the Company or a Restricted Subsidiary in
connection with the consummation of the Aries Acquisition in the amounts and as
described on Schedule 4.24, in an aggregate amount not to exceed $70,000,000;
provided, however, that the Company shall cause (A) any such Indebtedness
incurred pursuant to a loan or advance made by a Loan Party to be evidenced by a
promissory note in favor of the Loan Party which makes such loan or advance, in
form and substance satisfactory to the Administrative Agent and pledged to the
Collateral Agent pursuant to the Pledge and Security Agreement for the benefit
of the Secured Parties, (B) the Acquirer to be a direct, wholly owned Subsidiary
of OASP II, Inc. and (C) all other financing arrangements, including all capital
contributions to Foreign Subsidiaries, in connection with the Aries Acquisition
to be completed as described on Schedule 4.24;

          (c) Investments in Permitted Acquisitions;

          (d) other Investments in, and guarantees by the Company, including
Investments and guarantees made after the Effective Date (valued at the maximum
amount that could be payable thereunder, and provided that all such guarantees
shall be collection guarantees, not payment guarantees, and be on terms and
conditions satisfactory to the Administrative Agent), of the Indebtedness of,
Unrestricted Subsidiaries or joint ventures which do not exceed $35,000,000 for
all of the foregoing in aggregate outstanding amount (with the outstanding
amount thereof being deemed decreased by any cash repayments of such loans or
advances or cash dividends paid to the Company or any Restricted Subsidiary with
respect to any such investments), provided that (i) if such transaction involves
a loan or advance, such loans and advances are evidenced by promissory notes
payable on demand or on such other terms acceptable to the Administrative Agent
and in form and substance satisfactory to the Administrative Agent and which are
pledged to the Collateral Agent pursuant to the Pledge and Security Agreement
for the benefit of the Secured Parties, (ii) both before and after giving effect
to such Investment, the Leverage Ratio as of the last day of the most recently
ended Fiscal Quarter for which Financial Statements have been delivered pursuant
to Section 5.4 is no more than the maximum level permitted under Section 6.1(a)
on a Pro Forma Basis, and (iv) no Event of Default or Default exists or would be
caused thereby and the Company provides such certificates and legal opinions as
requested by the Administrative Agent in connection therewith; and

          (e) Investments (i) described on Schedule 6.9 (e)(i), as such
Investments may be reduced from time to time, but no increase in the amount
thereof shall be permitted and (ii) provided that no Default or Event of Default
has occurred and is continuing, in a "fonds commun de Creance" ("FCC") in
connection with the Aries Acquisition and as described, and in the amounts set
forth, on Schedule 6.9(e)(ii).

          SECTION 6.10. TRANSACTIONS WITH AFFILIATES. Other than as permitted by
Section 6.18, enter into or permit to exist any transaction or series of related
transactions (including without limitation the purchase, sale, lease or exchange
of any property, employee compensation arrangements or rendering of any service)
with any Affiliate of the Company (an "Affiliate Transaction") unless the terms
of such transaction (i) are no less favorable to the Company or such Restricted
Subsidiary than those that could be obtained at the time of such transaction in
a comparable transaction in arm's-length dealings with a Person who is not such
an Affiliate, (ii) if such Affiliate Transaction (or series of related
Affiliated Transactions) involves aggregate payments in an amount in excess of
$1,000,000 in any one year, (A) are set forth in writing, (B) comply with clause
(i) of this Section 6.10 and (C) have been approved by a majority of
disinterested members of the Board of Directors of the Company, and (iii) if
such Affiliate Transaction (or series of related Affiliate Transactions)
involves aggregate payments in an amount in excess of $5,000,000 in any one
year, (A) comply with clause (ii) and (B) have been determined by a nationally
recognized investment banking firm to be fair, from a financial standpoint, to
the Company and its Restricted Subsidiaries.

          SECTION 6.11. SALE AND LEASEBACK AND OTHER FINANCING TRANSACTIONS.
Other than as provided elsewhere herein, and other than the Mexican

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<PAGE>   87

Facility pursuant to the terms of the Mexican Facility Documents delivered to
the Administrative Agent prior to the Effective Date, (i) become or remain
liable in any way, whether directly or by assignment or as a guarantor or other
contingent obligor, for the obligations of the lessee or user under any lease or
contract for the use of any real or personal property if such property is owned
on the date of this Agreement or thereafter acquired by the Company or any of
its Restricted Subsidiaries and has been or is to be sold or transferred to any
other Person and was, is or will be used by the Company or any such Restricted
Subsidiary for substantially the same purpose as such property was used by the
Company or such Restricted Subsidiary prior to such sale or transfer, or (ii)
enter into or become or remain liable in any way, whether directly or by
assignment or as a guarantor or other contingent obligor or otherwise, any
synthetic lease (excluding the Mexican Facility); provided, however, that, at
any time the aggregate principal amount of all synthetic leases entered into by
the Company and its Restricted Subsidiaries is less than $100,000,000, and
provided further, that if any Guaranty Obligations incurred by the Company or
any of its Restricted Subsidiaries in respect of any such synthetic lease is in
excess of $12,000,000 such obligation shall be unsecured (it being understood
that if any Guaranty Obligation for an amount in excess of $12,000,000 is
secured, such obligation and the security therefore shall be on terms reasonably
acceptable to the Administrative Agent), tax ownership/operating lease, off
balance sheet financing or similar financing; provided further, that it is
acknowledged that this clause (ii) does not prohibit normal operating leases
entered into in the ordinary course of business as determined by GAAP. It is
acknowledged and agreed by the Borrowers that (x) the aggregate outstanding
amount under the Mexican Facility or otherwise pursuant to the Mexican Facility
Documents shall not exceed $75,000,000, as reduced from time to time, (y) the
obligations and liabilities under the Mexican Facility Tranche A Guaranty will
not exceed the outstanding amount of the Mexican Facility Tranche A Loans, as
reduced from time to time, and (z) other than the Mexican Facility Guaranty,
there are no liabilities or obligations, direct, contingent or otherwise, of any
kind owing by the Company of any of its Restricted Subsidiaries (other than the
Mexican Subsidiaries) pursuant to the Mexican Facilities.

          SECTION 6.12. NEGATIVE PLEDGE LIMITATION. Enter into any agreement
with any Person, other than the Lenders, the Administrative Agent or the
Collateral Agent pursuant hereto and other than the existing provisions without
amendment contained in the Lobdell Preferred Stock Documents and in the
agreements listed on Schedule 6.12, which prohibits or limits the ability of the
Company or any Restricted Subsidiary to create, incur, assume or suffer to exist
any Lien upon any of its assets, rights, revenues or property, real, personal or
mixed, tangible or intangible, whether now owned or hereafter acquired.

          SECTION 6.13. FSC COMMISSIONS. Pay or become obligated for the payment
during any fiscal year of the Company, commissions to all related wholly owned
foreign sales corporations in excess of an amount acceptable to the
Administrative Agent in aggregate amount plus reimbursement of the reasonable
administrative expenses of such wholly owned foreign sales corporations.

          SECTION 6.14. OTHER AGREEMENTS.

          (a) Permit any breach or default to exist under any Leases, Related
Documents, material contracts and other material agreements, or take or fail to
take any action thereunder, if to do so would have a Material Adverse Effect.

          (b) Enter into any agreement containing any provision which would be
violated or breached by this Agreement or any of the transactions contemplated
hereby or by performance by the Company or any of its Subsidiaries of its
obligations in connection therewith.

          SECTION 6.15. SUBSIDIARY DIVIDENDS. Other than those restrictions
existing as of the Effective Date or described in Schedule 6.12 without giving
effect to any amendment thereof on or after the Effective Date, permit any of
its Restricted Subsidiaries, directly or indirectly, to create or otherwise
cause or suffer to exist or become effective any consensual encumbrance or
restriction which by its terms materially restricts the ability of any such
Subsidiary to (i) pay dividends or make any other distributions

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<PAGE>   88

on such Restricted Subsidiary's Stock, (ii) pay any Indebtedness owed to the
Company or any of its other Restricted Subsidiaries, (iii) make any loans or
advances to the Company or any of such other Restricted Subsidiaries or (iv)
transfer any material portion of its assets to the Company or any of such other
Restricted Subsidiaries.

          SECTION 6.16. PREFERRED STOCK.

          (a) Issue any Preferred Stock or any Disqualified Stock, other than
(i) any Preferred Stock which does not require any dividends, payments,
redemptions or other distributions of any kind until at least one year after the
later of the Revolving Credit Termination Date or the Term Loan Maturity Date,
(ii) the existing Lobdell Preferred Stock and (iii) any other Preferred Stock or
Disqualified Stock which meets all of the requirements for the issuance by the
Company of Subordinated Debt (i.e., all payments and other obligations
thereunder are expressly subordinated and junior in right and priority of
payment to the Obligations and other Indebtedness of such Person to the Lenders
in manner and by agreement satisfactory in form and substance to the
Administrative Agent and such Preferred Stock or Disqualified Stock is subject
to such other terms and provisions, including without limitation maturities,
covenants, defaults, rates and fees, acceptable to the Administrative Agent),
and such Preferred Stock and Disqualified Stock allowed under this clause (iii)
shall be treated as if it were Subordinated Debt for all purposes of this
Agreement and is defined herein as "Permitted Disqualified Stock".

          (b) Make any amendment or modification to any Lobdell Preferred Stock
Document, other than the adjustment in the price of the Lobdell Preferred Stock
made prior to the Effective Date based on post closing adjustments and which do
not result in any additional obligations of Lobdell or of the Company or any of
its Restricted Subsidiaries, or enter into any other agreement or document
relating thereto other than the documents listed on Schedule 4.18 or make, pay,
declare or authorize any dividend, payment or other distribution with respect to
any Preferred Stock or any dividend, payment or distribution in connection with
the redemption, purchase, retirement or other acquisition, directly or
indirectly, of any Preferred Stock other than as required under the Lobdell
Preferred Stock Documents listed on Schedule 4.18; provided, however, that no
dividend, payment or other distribution in respect to the Preferred Stock or
dividend, payment or distribution in connection with the redemption, purchase,
retirement or other acquisition, directly or indirectly, of any Preferred Stock,
including those required under the Lobdell Preferred Stock Documents, will be
made if any Event of Default exists under Section 7.1(a) or would be caused
thereby.

          SECTION 6.17. OTHER INDEBTEDNESS AND AGREEMENTS. Make any amendment or
modification to any indenture, note or other agreement evidencing or governing
any Indebtedness (other than Indebtedness hereunder of the Company or any of its
Subsidiaries) or to any Tax Sharing Agreement, any Mexican Facility Document,
any Related Document or designate any Indebtedness (other than the Indebtedness
under the Loan Documents and under Hedging Agreements with Lenders) as
"Designated Senior Debt" under the Senior Subordinated Debt Documents.

          SECTION 6.18. MANAGEMENT FEES. Pay any management, consulting or
similar fees or amounts to any of its Affiliates other than (i) to the Company
or a Guarantor and (ii) as described on Schedule 6.18, without giving effect to
any amendment or modification of the agreement described on Schedule 6.18,
provided that no such management, consulting or similar fees or amounts (other
than the out of pocket expenses provided therefor) shall be paid pursuant to
this clause (ii) if any Event of Default or Default exists or would be caused
thereby, and the Oxford Investment Group, Inc. has acknowledged and agreed that
no such management, consulting or similar fees or amounts (other than out of
pocket expenses) will be so paid.

          SECTION 6.19. RESTRICTED SUBSIDIARIES. Except with the consent of the
Administrative Agent, which consent will not be unreasonably withheld, permit or
suffer any Restricted Subsidiary to not be a wholly owned Subsidiary.

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                                  ARTICLE VII

                                EVENTS OF DEFAULT

      SECTION 7.1. EVENTS OF DEFAULT. The occurrence of any one of the following
events or conditions shall be deemed an "Event of Default" hereunder unless
waived pursuant to Section 9.1:

      (a) Nonpayment. The Borrowers shall fail to pay when due, whether at
stated maturity, by acceleration or otherwise, any principal on the Loans or any
Reimbursement Obligation under Sections 2.4 or 2.5 (whether by deemed
disbursement of a Revolving Credit Loan or otherwise), or, within five days
after becoming due, any interest on the Loans or any fees or any other amount
payable hereunder; or

      (b) Misrepresentation. Any representation or warranty made by any Borrower
or any of the Guarantors in Article IV hereof, or in any Collateral Document, or
any other certificate, report, financial statement or other document furnished
by or on behalf of the Company or any of the Guarantors in connection with this
Agreement, shall prove to have been incorrect in any material respect when made
or deemed made; or

      (c) Certain Covenants. Any Borrower shall fail to perform or observe any
term, covenant or agreement contained in Article VI hereof; or

      (d) Other Defaults. Any default which remains uncured beyond any
applicable cure period shall exist under any material purchase or tooling
contract that could have a Material Adverse Effect, or any Borrower or any
Guarantor shall fail to perform or observe any other term, covenant or agreement
contained in this Agreement or in any other Loan Document, and any such failure
shall remain unremedied for 15 calendar days after the earlier of the date on
which (i) a Responsible Officer of the Company becomes aware of such failure and
(ii) written notice thereof shall have been given to the Company by the
Administrative Agent; or

      (e) Cross Default. Failure of the Company or any of its Restricted
Subsidiaries to pay when due any Indebtedness aggregating in excess of
$6,000,000 or any Mexican Facility Obligations ("Material Obligations") or the
default by the Company or any of its Restricted Subsidiaries in the observance
or performance (beyond the applicable grace period with respect thereto, if any)
of any term, provision or condition contained in any agreement under which any
such Material Obligations was created or is governed, or any other event shall
occur or condition exist, the effect of which default or event is to cause, or
to permit the holder or holders of such Material Obligations to cause, such
Material Obligations to become due prior to its stated maturity; or any Material
Obligations of the Company or any of its Restricted Subsidiaries shall be
declared to be due and payable or required to be prepaid or repurchased (other
than by a regularly scheduled payment) prior to the stated maturity thereof; or

      (f) Judgments. One or more judgments or orders for the payment of money in
an aggregate amount of $6,000,000 shall be rendered against the Company or any
of its Restricted Subsidiaries, or any other judgment or order (whether or not
for the payment of money) shall be rendered against or shall affect the Company
or any of its Restricted Subsidiaries which causes or could cause a Material
Adverse Effect, and either (i) such judgment or order shall have remained
unsatisfied and the Company or such Restricted Subsidiary shall not have taken
action necessary to stay enforcement thereof by reason of pending appeal or
otherwise, prior to the expiration of the applicable period of limitations for
taking such action or, if such action shall have been taken, a final order
denying such stay shall have been rendered, or (ii) enforcement proceedings
shall have been commenced by any creditor upon any such judgment or order; or

      (g) ERISA. The occurrence of a Reportable Event that results in or could
result in liability of the Company or any of its ERISA Affiliates to the PBGC or
to any Title IV Plan and such

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<PAGE>   90

Reportable Event is not corrected within 30 days after the occurrence thereof;
or the occurrence of any Reportable Event which could constitute grounds for
termination of any Title IV Plan of the Company or any of its ERISA Affiliates
by the PBGC or for the appointment by the appropriate United States District
Court of a trustee to administer any such Title IV Plan and such Reportable
Event is not corrected within 30 days after the occurrence thereof; or the
Company or any of its ERISA Affiliates shall fail to pay when due any liability
to the PBGC or to a Title IV Plan; or any Person engages in a Prohibited
Transaction with respect to any Title IV Plan which results in or could result
in liability of the Company, any of its ERISA Affiliates, any Title IV Plan of
the Company or any of its ERISA Affiliates or any fiduciary of any such Title IV
Plan; or the PBGC shall have instituted proceedings to terminate, or to cause a
trustee to be appointed to administer, any Title IV Plan of the Company or any
of its ERISA Affiliates; or failure by the Company or any of their ERISA
Affiliates to make a required installment or other payment to any Title IV Plan
within the meaning of Section 302(f) of ERISA or Section 412(n) of the Code that
results in or could result in liability of the Company or any of their ERISA
Affiliates to the PBGC or any Title IV Plan; or the withdrawal of the Company or
any of its ERISA Affiliates from a Title IV Plan during a Title IV Plan year in
which it was a "substantial employer" as defined in Section 4001(9a)(2) of
ERISA; or the Company or any of its ERISA Affiliates becomes an employer with
respect to any Multiemployer Plan without the prior written consent of the
Administrative Agent, and in each case above, such event or condition, together
with all other events or conditions, if any, could subject the Company and its
Restricted Subsidiaries to any tax, penalties or other liability which in the
aggregate may exceed $6,000,000; or

      (h) Insolvency, Etc. The Company or any of its Restricted Subsidiaries
shall be dissolved or liquidated (or any judgment, order or decree therefor
shall be entered), or shall generally not pay its debts as they become due, or
shall admit in writing its inability to pay its debts generally, or shall make a
general assignment for the benefit of creditors, or shall institute, or there
shall be instituted against the Company or any of its Restricted Subsidiaries
any proceeding or case seeking to adjudicate it a bankrupt or insolvent or
seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief or protection of debtors or
seeking the entry of an order for relief, or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part
of its assets, rights, revenues or property, and, if such proceeding is
instituted against the Company or such Restricted Subsidiary and is being
contested by the Company or such Restricted Subsidiary, as the case may be, in
good faith by appropriate proceedings, such proceeding shall remain undismissed
or unstayed for a period of 60 days or an order for relief is entered; or the
Company or such Restricted Subsidiary shall take any action (corporate or other)
to authorize or further any of the actions described above in this subsection;
or

      (i) Collateral Documents. Any event of default described in any Loan
Document shall have occurred and be continuing, or any material provision of any
Loan Document shall at any time for any reason cease to be valid and binding and
enforceable against any obligor thereunder, or the validity, binding effect or
enforceability thereof shall be contested by any Person, or any obligor, shall
deny that it has any or further liability or obligation thereunder, or any
material provision thereof shall be terminated, invalidated or set aside, or be
declared ineffective or inoperative or in any way cease to give or provide to
the Lenders and the Administrative Agent the benefits purported to be created
thereby; or

      (j) Control. Any Change of Control shall occur; or

      (k) Material Adverse Change. There shall occur a Material Adverse Change
or any event or circumstances which would have a Material Adverse Effect,
including an event or circumstances that would result in the reasonable
likelihood of the Company and its Subsidiaries incurring Environmental
Liabilities and Costs, the payment of which would have a Material Adverse
Effect; or

      (l) Mexican Facility. Any commitment to lend or other obligation to
advance funds pursuant to the Mexican Facility or otherwise under the Mexican
Facility Documents shall be terminated

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for any reason or any Loan Agreement Event of Default (as defined in the Mexican
Facility Documents) or other default shall occur under the Mexican Facility
Documents.

      SECTION 7.2. REMEDIES. During the continuance of any Event of Default, the
Administrative Agent (i) may, and shall at the request of the Requisite Lenders,
by notice to the Borrowers declare that all or any portion of the Commitments be
terminated, whereupon the obligation of each Lender to make any Loan and each
Issuer to issue any Letter of Credit shall immediately terminate, and/or (ii)
may and shall at the request of the Requisite Lenders, by notice to the
Borrowers, declare the Loans, all interest thereon and all other amounts and
Obligations payable under this Agreement to be forthwith due and payable,
whereupon the Loans, all such interest and all such amounts and Obligations
shall become and be forthwith due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived
by the Borrowers; provided, however, that upon the occurrence of the Event of
Default specified in Section 7.1(h), (A) the Commitments of each Lender to make
Loans and of each Lender and Issuer to issue or participate in Letters of Credit
shall automatically be terminated and (B) the Loans, all such interest and all
such amounts and Obligations shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are
hereby expressly waived by the Borrowers. In addition to the remedies set forth
above, the Collateral Agent may exercise any remedies provided for by the
Collateral Documents in accordance with the terms thereof or any other remedies
provided by applicable law.

      SECTION 7.3. ACTIONS IN RESPECT OF LETTERS OF CREDIT AND BANKERS'
ACCEPTANCE. Upon the Revolving Credit Termination Date or as required by Section
2.10, the Borrowers shall pay to the Administrative Agent in immediately
available funds at the Administrative Agent's office referred to in Section 9.8,
for deposit in a Cash Collateral Account an amount equal to 105% of the sum of
all outstanding Letter of Credit Obligations and Bankers' Acceptance
Obligations. The Administrative Agent may, from time to time after funds are
deposited in such Cash Collateral Account, apply funds then held in such Cash
Collateral Account to the payment of any amounts, in accordance with Section
2.14(f), as shall have become or shall become due and payable by the Borrowers
to the Issuers or Revolving Credit Lenders in respect of the Letter of Credit
Obligations and Bankers' Acceptance Obligations. The Administrative Agent shall
promptly give written notice of any such application; provided, however, that
the failure to give such written notice shall not invalidate any such
application.

      SECTION 7.4. RESCISSION. If at any time after termination of the Revolving
Credit Commitments and/or acceleration of the maturity of the Loans, the
Borrowers shall pay all arrears of interest and all payments on account of
principal of the Loans and Reimbursement Obligations Acceptances which shall
have become due otherwise than by acceleration (with interest on principal and,
to the extent permitted by law, on overdue interest, at the rates specified
herein) and all Events of Default and Defaults (other than non-payment of
principal of and accrued interest on the Loans due and payable solely by virtue
of acceleration) shall be remedied or waived pursuant to Section 9.1, then upon
the written consent of the Requisite Lenders and written notice to the
Borrowers, the termination of the Revolving Credit Commitments and/or the
acceleration and their consequences may be rescinded and annulled; but such
action shall not affect any subsequent Event of Default or Default or impair any
right or remedy consequent thereon. The provisions of the preceding sentence are
intended merely to bind the Lenders and the Issuers to a decision which may be
made at the election of the Requisite Lenders; they are not intended to benefit
the Borrowers and do not give the Borrowers the right to require the Lenders to
rescind or annul any acceleration hereunder, even if the conditions set forth
herein are met.

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                                  ARTICLE VIII

                      THE ADMINISTRATIVE AGENT; THE AGENTS

      SECTION 8.1. AUTHORIZATION AND ACTION.

      (a) Each Lender and each Issuer hereby appoints Citicorp as the
Administrative Agent hereunder and each Lender and each Issuer authorizes the
Administrative Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement, the other Loan Documents and the Mexican
Intercreditor Agreement as are delegated to the Administrative Agent under such
agreements and to exercise such powers as are reasonably incidental thereto.
Without limitation of the foregoing, each Lender and each Issuer hereby
authorizes the Administrative Agent to execute and deliver, and to perform its
obligations under the Mexican Intercreditor Agreement and each of the Loan
Documents and to which the Administrative Agent is a party and to exercise all
rights, powers and remedies that the Administrative Agent may have under the
Mexican Intercreditor Agreement and such Loan Documents and that under the
Collateral Documents the Collateral Agent is acting as agent for the Lenders,
Issuers and the other Secured Parties.

      (b) As to any matters not expressly provided for by this Agreement, the
other Loan Documents and the Mexican Intercreditor Agreement (including
enforcement or collection), the Administrative Agent, or Collateral Agent, as
the case may be, shall not be required to exercise any discretion or take any
action, but shall be required to act or to refrain from acting (and shall be
fully protected in so acting or refraining from acting) upon the instructions of
the Requisite Lenders, and such instructions shall be binding upon all Lenders
and each Issuer; provided, however, that the Administrative Agent shall not be
required to take any action which (i) the Administrative Agent in good faith
believes exposes it to personal liability unless the Administrative Agent
receives an indemnification satisfactory to it from the Lenders and the Issuers
with respect to such action or (ii) is contrary to this Agreement or applicable
law. The Administrative Agent agrees to give to each Lender and each Issuer
prompt notice of each notice given to it by any Loan Party pursuant to the terms
of this Agreement or the other Loan Documents.

      (c) In performing its functions and duties hereunder, under the other Loan
Documents and under the Mexican Intercreditor Agreement, the Administrative
Agent is acting solely on behalf of the Lenders and the Issuers and its duties
are entirely administrative in nature. The Administrative Agent does not assume
and shall not be deemed to have assumed any obligation other than as expressly
set forth herein, in the other Loan Documents or under the Mexican Intercreditor
Agreement or any other relationship as the agent, fiduciary or trustee of or for
any Lender, Issuer or holder of any other Secured Obligation. The Administrative
Agent may perform any of its duties under any of the Loan Documents or under the
Mexican Intercreditor Agreement by or through its agents or employees.

      (d) Each Lender and each Issuer hereby appoints Comerica Bank as
Syndication Agent and Credit Suisse First Boston as Documentation Agent and
hereby authorizes the Syndication Agent to act as Syndication Agent and the
Documentation Agent to act as Documentation Agent on its behalf in accordance
with the terms of this Agreement and the other Loan Documents. Notwithstanding
anything to the contrary contained in this Agreement, each of the Syndication
Agent and the Documentation Agent is a Lender designated as "Syndication Agent"
or "Documentation Agent," respectively, for title purposes only and in such
capacity shall have no obligations or duties whatsoever under this Agreement or
any other Loan Document to any Loan Party, any Lender or any Issuer and shall
have no rights separate from its rights as a Lender except as expressly provided
in this Agreement.

      SECTION 8.2. ADMINISTRATIVE AGENT'S RELIANCE, ETC. Neither the
Administrative Agent nor any of its Affiliates or any of the respective
directors, officers, agents or employees of the Administrative Agent or any such
Affiliate shall be liable for any action taken or omitted to be taken by it,

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him, her or them under or in connection with this Agreement, the other Loan
Documents or the Mexican Intercreditor Agreement, except for its, his, her or
their own gross negligence or willful misconduct. Without limiting the
foregoing, the Administrative Agent (a) may treat the payee of any Note as its
holder until such Note has been assigned in accordance with Section 9.2; (b) may
rely on the Register to the extent set forth in Section 9.2(c); (c) may consult
with legal counsel (including counsel to the Borrowers or any other Loan Party),
independent public accountants and other experts selected by it and shall not be
liable for any action taken or omitted to be taken in good faith by it in
accordance with the advice of such counsel, accountants or experts; (d) makes no
warranty or representation to any Lender or Issuer and shall not be responsible
to any Lender or Issuer for any statements, warranties or representations made
by or on behalf of the Company or any of its Subsidiaries in or in connection
with this Agreement or any of the other Loan Documents; (e) shall not have any
duty to ascertain or to inquire either as to the performance or observance of
any of the terms, covenants or conditions of this Agreement or any of the other
Loan Documents or the financial condition of any Loan Party, or the existence or
possible existence of any Default or Event of Default; (f) shall not be
responsible to any Lender or Issuer for the due execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, any of the
other Loan Documents or the Mexican Intercreditor Agreement or any other
instrument or document furnished pursuant hereto or thereto; and (g) shall incur
no liability under or in respect of this Agreement, any of the other Loan
Documents or the Mexican Intercreditor Agreement by acting upon any notice,
consent, certificate or other instrument or writing (which may be by telecopy)
or any telephone message believed by it to be genuine and signed or sent by the
proper party or parties.

      SECTION 8.3. THE ADMINISTRATIVE AGENT INDIVIDUALLY. With respect to its
Ratable Portion, Citicorp shall have and may exercise the same rights and powers
hereunder and is subject to the same obligations and liabilities as and to the
extent set forth herein for any other Lender. The terms "Lenders" or "Requisite
Lenders" or any similar terms shall, unless the context clearly otherwise
indicates, include the Administrative Agent in its individual capacity as a
Lender or as one of the Requisite Lenders. Citicorp and its Affiliates may
accept deposits from, lend money to, and generally engage in any kind of
banking, trust or other business with any Loan Party as if it were not acting as
the Administrative Agent.

      SECTION 8.4. LENDER CREDIT DECISION. Each Lender and each Issuer
acknowledges that it shall, independently and without reliance upon the
Administrative Agent or any other Lender conduct its own independent
investigation of the financial condition and affairs of the Borrowers and each
other Loan Party in connection with the making and continuance of the Loans and
with the issuance of the Letters of Credit. Each Lender and each Issuer also
acknowledges that it will, independently and without reliance upon the
Administrative Agent or any other Lender and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement and other
Loan Documents.

      SECTION 8.5. INDEMNIFICATION. Each Lender agrees to indemnify the
Administrative Agent and each of its Affiliates, and each of their respective
directors, officers, employees, agents and advisors (to the extent not
reimbursed by the Borrowers), from and against such Lender's aggregate Ratable
Portion of any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses and disbursements (including fees and
disbursements of legal counsel) of any kind or nature whatsoever which may be
imposed on, incurred by, or asserted against, the Administrative Agent or any of
its Affiliates, directors, officers, employees, agents and advisors in any way
relating to or arising out of this Agreement or the other Loan Documents or any
action taken or omitted by the Administrative Agent under this Agreement, the
other Loan Documents or the Mexican Intercreditor Agreement; provided, however,
that no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from the Administrative Agent's or such Affiliate's
gross negligence or willful misconduct. Without limiting the foregoing, each
Lender agrees to reimburse the Administrative Agent promptly upon demand for its
ratable share of any out-of-pocket expenses (including fees and disbursements of
legal counsel) incurred by the Administrative Agent in connection with the
preparation, execution, delivery, administration,

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modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of its rights or
responsibilities under, this Agreement, the other Loan Documents or the Mexican
Intercreditor Agreement, to the extent that the Administrative Agent is not
reimbursed for such expenses by the Borrowers or another Loan Party.

      SECTION 8.6. SUCCESSOR ADMINISTRATIVE AGENT. The Administrative Agent may
resign at any time by giving written notice thereof to the Lenders and the
Borrowers. Upon any such resignation, the Requisite Lenders shall have the right
to appoint a successor Administrative Agent. If no successor Administrative
Agent shall have been so appointed by the Requisite Lenders, and shall have
accepted such appointment, within 30 days after the retiring Administrative
Agent's giving of notice of resignation, then the retiring Administrative Agent
may, on behalf of the Lenders, appoint a successor Administrative Agent,
selected from among the Lenders. In either case, such appointment shall be
subject to the prior written approval of the Borrowers (which approval may not
be unreasonably withheld and shall not be required upon the occurrence and
during the continuance of an Event of Default). Upon the acceptance of any
appointment as Administrative Agent by a successor Administrative Agent, such
successor Administrative Agent shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Administrative Agent, and
the retiring Administrative Agent shall be discharged from its duties and
obligations under this Agreement, the other Loan Documents and the Mexican
Intercreditor Agreement. Prior to any retiring Administrative Agent's
resignation hereunder as Administrative Agent, the retiring Administrative Agent
shall take such action as may be reasonably necessary to assign to the successor
Administrative Agent its rights as Administrative Agent under the Loan Documents
and the Mexican Intercreditor Agreement. After such resignation, the retiring
Administrative Agent shall continue to have the benefit of this Article VIII as
to any actions taken or omitted to be taken by it while it was Administrative
Agent under this Agreement, the other Loan Documents and Mexican Intercreditor
Agreement.

                                   ARTICLE IX

                                  MISCELLANEOUS

      SECTION 9.1. AMENDMENTS, WAIVERS, ETC.

      (a) No amendment or waiver of any provision of this Agreement or any other
Loan Document or consent to any departure by any Loan Party therefrom shall in
any event be effective unless the same shall be in writing and signed by the
Requisite Lenders, and then any such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given; provided,
however, that no amendment, waiver or consent shall, unless in writing and
signed by each Lender affected thereby, in addition to the Requisite Lenders, do
any of the following:

         (i)  waive any of the conditions specified in Section 3.2 or 3.3 except
   with respect to a condition based upon another provision hereof, the waiver
   of which requires only the concurrence of the Requisite Lenders;

         (ii)  increase the Commitments of the Lenders or subject the Lenders to
   any additional obligations (other than a Facilities Increase permitted under
   Section 2.20); provided, however, that any such increase with respect to the
   Term Loan or the Revolving Loan Commitments shall require the consent of the
   Requisite Term Loan Lenders or the Requisite Revolving Credit Lenders, as the
   case may be;

         (iii) extend the scheduled final maturity of any Loan, or waive, reduce
   or postpone any scheduled date fixed for the payment or reduction of
   principal (it being understood that Section 2.11 does not provide for
   scheduled dates fixed for payment) or of the Commitments;

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         (iv)   reduce the principal amount of any Loan or Reimbursement
   Obligation (other than by the payment or prepayment thereof);

         (v)    reduce the rate of interest on any Loan or Reimbursement
   Obligations or any fee payable hereunder;

         (vi)   postpone any scheduled date fixed for payment of such interest
   or fees;

         (vii)  change the aggregate Ratable Portions of the Lenders which shall
   be required for the Lenders or any of them to take any action hereunder;

         (viii) release any Collateral except (A) as provided in the Mexican
   Intercreditor Agreement, (B) following the Canadian Subsidiary Release Date
   as provided in the Collateral Documents or (C) following the repayment in
   full of the related loan or advance made by a Loan Party pursuant to Sections
   6.9(a) or (b), or release any Subsidiary Guarantor from its obligations under
   the Guaranty except in connection with sale or other disposition permitted by
   this Agreement (or permitted pursuant to a waiver or consent of a transaction
   otherwise prohibited by this Agreement); or

         (ix)   amend this Section 9.1, Section 9.7 or the definition of the
   terms "Requisite Lenders", "Requisite Revolving Credit Lenders", "Requisite
   Term Loan Lenders" or "Ratable Portion";

and provided, further, (A) that any modification of the application of payments
to the Term Loans pursuant to Section 2.10 shall require the consent of the
Requisite Term Loan Lenders and any such modification of the application of
payments to the Revolving Loans pursuant to Section 2.10 or the reduction of the
Revolving Credit Commitments pursuant to Section 2.6(b) shall require the
consent of the Requisite Revolving Credit Lenders and (B) that no amendment,
waiver or consent shall, unless in writing and signed by the Administrative
Agent in addition to the Lenders required above to take such action, affect the
rights or duties of the Administrative Agent under this Agreement or the other
Loan Documents.

     (b) The Administrative Agent may, but shall have no obligation to, with the
written concurrence of any Lender, execute amendments, modifications, waivers or
consents on behalf of that Lender. Any waiver or consent shall be effective only
in the specific instance and for the specific purpose for which it was given. No
notice to or demand on the Borrowers in any case shall entitle the Borrowers to
any other or further notice or demand in similar or other circumstances.

     (c) In connection with any proposed amendment, modification, waiver or
termination (a "Proposed Change") requiring the consent of all affected Lenders,
the consent of Requisite Lenders is obtained, but the consent of other Lenders
whose consent is required is not obtained (any such Lender whose consent is not
obtained as described in this Section 9.1 being referred to as a "Non-Consenting
Lender"), then, so long as the Lender that is acting as the Administrative Agent
is not a Non-Consenting Lender, at the Borrowers' request, the Administrative
Agent or an Eligible Assignee that is acceptable to the Administrative Agent
shall have the right with the Administrative Agent's consent and in the
Administrative Agent's sole discretion (but shall have no obligation) to
purchase from such Non-Consenting Lender, and such Non-Consenting Lender agrees
that it shall, upon the Administrative Agent's request, sell and assign to the
Lender that is acting as the Administrative Agent or such Eligible Assignee, all
of the Commitments, Term Loans and Revolving Credit Outstandings of such
Non-Consenting Lender for an amount equal to the principal balance of all Term
Loans and Revolving Loans held by the Non-Consenting Lender and all accrued
interest and fees with respect thereto through the date of sale, such purchase
and sale to be consummated pursuant to an executed Assignment and Acceptance.

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     SECTION 9.2. ASSIGNMENTS AND PARTICIPATIONS.

     (a) Each Lender may sell, transfer, negotiate or assign to one or more
Eligible Assignees all or a portion of its rights and obligations hereunder
(including all of its rights and obligations with respect to the Term Loans, the
Revolving Loans, the Swing Loans and the Letters of Credit); provided, however,
that (i) (A) if any such assignment shall be of the assigning Lender's Revolving
Credit Outstandings and Revolving Credit Commitment, such assignment shall cover
the same percentage of such Lender's Revolving Credit Outstandings and Revolving
Credit Commitment (adjusted, if necessary, in the case of an assignment by a
Canadian Lender to account for its ratable portion of Canadian Revolving Credit
Outstandings), and (B) if any such assignment shall be of the assigning Lender's
Term Loans and Term Loan Commitment, such assignment shall cover the same
percentage of such Lender's Term Loans and Term Loan Commitment, (ii) the
aggregate amount being assigned pursuant to each such assignment (determined as
of the date of the Assignment and Acceptance with respect to such assignment)
shall in no event (if less than the Assignor's entire interest) be less than
$5,000,000 or an integral multiple of $1,000,000 in excess thereof, except, in
either case, (A) with the consent of the Borrowers and the Administrative Agent
or (B) if such assignment is being made to a Lender or an Affiliate or Approved
Fund of such Lender, and (iii) if such Eligible Assignee is not, prior to the
date of such assignment, a Lender or an Affiliate or Approved Fund of a Lender,
such assignment shall be subject to the prior consent of the Administrative
Agent and the Borrowers (which consent shall not be unreasonably withheld or
delayed); provided, however, that, notwithstanding any other provision of this
Section 9.2, the consent of the Borrowers shall not be required for any
assignment which occurs when any Event of Default shall have occurred and be
continuing. Any such assignment need not be ratable as among the Term Loan
Facility and the Revolving Credit Facility. If, as a result of any assignment to
an Eligible Assignee that is a Canadian Lender, the Canadian Revolving Credit
Outstandings owing to any Canadian Lender are greater than such Canadian
Lender's Canadian Ratable Portion of the Canadian Revolving Credit Outstandings
owing to all Canadian Lenders, then at the direction of the Administrative Agent
(with notice from the Administrative Agent to each Canadian Lender and the
Borrowers), each Canadian Lender that does not hold such Obligations in excess
of its Canadian Ratable Portion shall purchase from the other Canadian Lenders
such Canadian Revolving Credit Outstandings as shall be necessary to cause each
Canadian Lender to have Canadian Revolving Credit Outstandings owing to it equal
to its Canadian Ratable Portion of the Canadian Revolving Credit Outstandings
owing to all Canadian Lenders. The amount of such purchase shall be determined
by the Administrative Agent in accordance with each Canadian Lender's Canadian
Ratable Portion.

     (b) The parties to each assignment shall execute and deliver to the
Administrative Agent, for its acceptance and recording, an Assignment and
Acceptance, together with any Note (if the assigning Lender's Loans are
evidenced by a Note) subject to such assignment. Upon such execution, delivery,
acceptance and recording and the receipt by the Administrative Agent from the
assignee of an assignment fee in the amount of $3,500 from and after the
effective date specified in such Assignment and Acceptance, (i) the assignee
thereunder shall become a party hereto and, to the extent that rights and
obligations under the Loan Documents have been assigned to such assignee
pursuant to such Assignment and Acceptance, have the rights and obligations of a
Lender, and if such Lender were an Issuer, of such Issuer hereunder and
thereunder, and (ii) the assignor thereunder shall, to the extent that rights
and obligations under this Agreement have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights (except those which survive the
payment in full of the Obligations) and be released from its obligations under
the Loan Documents, other than those relating to events or circumstances
occurring prior to such assignment (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender's rights
and obligations under the Loan Documents, such Lender shall cease to be a party
hereto).

     (c) The Administrative Agent shall maintain at its address referred to in
Section 9.8 a copy of each Assignment and Acceptance delivered to and accepted
by it and a register for the recording of the names and addresses of the Lenders
and the Commitments of and principal amount of the Loans and Letter of Credit
Obligations owing to each Lender from time to time (the "Register"). The entries
in

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the Register shall be conclusive and binding for all purposes, absent
manifest error, and the Loan Parties, the Administrative Agent and the Lenders
may treat each Person whose name is recorded in the Register as a Lender for all
purposes of this Agreement. The Register shall be available for inspection by
the Borrowers, the Administrative Agent or any Lender at any reasonable time and
from time to time upon reasonable prior notice.

     (d) Upon its receipt of an Assignment and Acceptance executed by an
assigning Lender and an assignee, the Administrative Agent shall, if such
Assignment and Acceptance has been completed, (i) accept such Assignment and
Acceptance, (ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the Borrowers. Within five Business Days
after its receipt of such notice, the Borrowers, at their expense, shall, if
requested by such assignee, execute and deliver to the Administrative Agent, new
Notes to the order of such assignee in an amount equal to the Commitments and
Term Loans assumed by it pursuant to such Assignment and Acceptance and, if the
assigning Lender has surrendered any Note for exchange in connection with the
assignment and has retained Commitments or Term Loans hereunder, new Notes to
the order of the assigning Lender in an amount equal to the Commitments and Term
Loans retained by it hereunder. Such new Notes shall be dated the same date as
the surrendered Notes and be in substantially the form of Exhibit B-1 or B-2
hereto, as applicable.

     (e) In addition to the other assignment rights provided in this Section
9.2, (i) each Lender may assign, as collateral or otherwise, any of its rights
under this Agreement (including rights to payments of principal or interest on
the Loans) to any Federal Reserve Bank pursuant to Regulation A of the Federal
Reserve Board without notice to or consent of the Borrowers or the
Administrative Agent and (ii) any Lender (a "Granting Bank") may grant to a
special purpose funding vehicle (a "SPC"), identified as such in writing from
time to time by the Granting Bank to the Administrative Agent and the Borrowers,
the option to provide to the Borrowers all or any part of any Loan to the
Borrowers that such Granting Bank would otherwise be obligated to make to the
Borrowers pursuant to this Agreement; provided that (A) nothing herein shall
constitute a commitment by any SPC to make any Loan and (B) if an SPC elects not
to exercise such option or otherwise fails to provide all or any part of such
Loan, the Granting Bank shall be obligated to make such Loan pursuant to the
terms hereof. The making of such Loan by an SPC hereunder shall utilize the
Commitment of the Granting Bank to the same extent, and as if, such Loan were
made by such Granting Bank. Each party hereto hereby agrees that no SPC shall be
liable for any indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the Granting Bank). In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one
day after the payment in full of all outstanding commercial paper or other
senior indebtedness of any SPC, it will not institute against, or join any other
person in instituting against, such SPC any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under the laws of the United
States or any State thereof. In addition, notwithstanding anything to the
contrary contained in this Section 9.2(e), any SPC may (i) with notice to, but
without the prior written consent of, the Borrowers and the Administrative Agent
and without paying any processing fee therefor, assign all or a portion of its
interests in any Loans to the Granting Bank or to any financial institutions
(consented to by the Borrowers and Administrative Agent) providing liquidity
and/or credit support to or for the account of such SPC to support the funding
or maintenance of such Loans and (ii) disclose on a confidential basis any
non-public information relating to such Loans to any rating agency, commercial
paper dealer or provider of any surety, guarantee or credit or liquidity
enhancement to such SPC. This section may not be amended without the written
consent of the Granting Bank. No such pledge or assignment of security interest
as described in this Section 9.4(e) shall release any Lender from any of its
obligations hereunder or substitute any such assignee for such Lender as a party
hereto.

     (f) Each Lender may sell participations to one or more Persons in or to all
or a portion of its rights and obligations under the Loan Documents (including
all its rights and obligations with respect to the Term Loans, Revolving Loans
and Letters of Credit). The terms of such participation shall not, in any event,
require the participant's consent to any amendments, waivers or other

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modifications of any provision of any Loan Documents, the consent to any
departure by any Loan Party therefrom, or to the exercising or refraining from
exercising any powers or rights which such Lender may have under or in respect
of the Loan Documents (including the right to enforce the obligations of the
Loan Parties), except if any such amendment, waiver or other modification or
consent would (i) reduce the amount, or postpone any date fixed for, any amount
(whether of principal, interest or fees) payable to such participant under the
Loan Documents, to which such participant would otherwise be entitled under such
participation or (ii) result in the release of all or substantially all of the
Collateral other than in accordance with the Mexican Intercreditor Agreement).
In the event of the sale of any participation by any Lender, (A) such Lender's
obligations under the Loan Documents shall remain unchanged, (B) such Lender
shall remain solely responsible to the other parties for the performance of such
obligations, (C) such Lender shall remain the holder of such Obligations for all
purposes of this Agreement, and (D) the Borrowers, the Administrative Agent and
the other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender's rights and obligations under this Agreement. Each
participant shall be entitled to the benefits of Sections 2.15(d), 2.16 and 2.17
as if it were a Lender; provided, however, that anything herein to the contrary
notwithstanding, the Borrowers shall not, at any time, be obligated to pay to
any participant of any interest of any Lender, under Section 2.15(d), 2.16 or
2.17, any sum in excess of the sum which the Borrowers would have been obligated
to pay to such Lender in respect of such interest had such participation not
been sold.

     (g) Any Issuer may at any time assign its rights and obligations hereunder
to any other Lender by an instrument in form and substance satisfactory to the
Borrowers, the Administrative Agent, such Issuer and such Lender. If any Issuer
ceases to be a Lender hereunder by virtue of any assignment made pursuant to
this Section 9.2, then, as of the effective date of such cessation, such
Issuer's obligations to issue Letters of Credit pursuant to Section 2.4 shall
terminate and such Issuer shall be an Issuer hereunder only with respect to
outstanding Letters of Credit issued prior to such date.

     SECTION 9.3. COSTS AND EXPENSES.

     (a) The Borrowers agrees upon demand to pay, or reimburse the
Administrative Agent for, all of the Administrative Agent's reasonable internal
and external audit, legal, appraisal, valuation, filing, document duplication
and reproduction and investigation expenses and for all other reasonable
out-of-pocket costs and expenses of every type and nature (including, without
limitation, the reasonable fees, expenses and disbursements of the
Administrative Agent's counsel, Weil, Gotshal & Manges LLP, local legal counsel,
auditors, accountants, appraisers, printers, insurance and environmental
advisers, and other consultants and agents) incurred by the Administrative Agent
in connection with (i) the Administrative Agent's audit and investigation of the
Company and its Subsidiaries in connection with the preparation, negotiation and
execution of the Loan Documents and the Administrative Agent's periodic audits
of the Company and its Subsidiaries, which, in the absence of an Event of
Default shall be conducted no more frequently than is reasonable, as the case
may be; (ii) the preparation, negotiation, execution and interpretation of this
Agreement (including, without limitation, the satisfaction or attempted
satisfaction of any of the conditions set forth in Article III), the Loan
Documents, the Mexican Intercreditor Agreement and any proposal letter or
commitment letter issued in connection therewith and the making of the Loans
hereunder; (iii) the creation, perfection or protection of the Liens under the
Loan Documents (including, without limitation, any reasonable fees and expenses
for local counsel in various jurisdictions); (iv) the ongoing administration of
this Agreement and the Loans, including consultation with attorneys in
connection therewith and with respect to the Administrative Agent's rights and
responsibilities hereunder, under the other Loan Documents and under the Mexican
Intercreditor Agreement; (v) the protection, collection or enforcement of any of
the Obligations or the enforcement of any of the Loan Documents; (vi) the
commencement, defense or intervention in any court proceeding relating in any
way to the Obligations, any Loan Party, any of the

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<PAGE>   99

Company's Subsidiaries, the Acquisition, the Related Documents, this Agreement
or any of the other Loan Documents; (vii) the response to, and preparation for,
any subpoena or request for document production with which the Administrative
Agent is served or deposition or other proceeding in which the Administrative
Agent is called to testify, in each case, relating in any way to the
Obligations, any Loan Party, any of the Company's Subsidiaries, the Acquisition,
the Related Documents, this Agreement or any of the other Loan Documents; and
(viii) any amendments, consents, waivers, assignments, restatements, or
supplements to any of the Loan Documents or the Mexican Intercreditor Agreement
and the preparation, negotiation, and execution of the same.

     (b) Each Borrower further agrees to pay or reimburse the Administrative
Agent and each of the Lenders and Issuers upon demand for all out-of-pocket
costs and expenses, including, without limitation, reasonable attorneys' fees
(including allocated costs of internal counsel and costs of settlement),
incurred by the Administrative Agent, such Lenders or Issuers (i) in enforcing
any Loan Document or Obligation or any security therefor or exercising or
enforcing any other right or remedy available by reason of an Event of Default;
(ii) in connection with any refinancing or restructuring of the credit
arrangements provided hereunder in the nature of a "work-out" or in any
insolvency or bankruptcy proceeding; (iii) in commencing, defending or
intervening in any litigation or in filing a petition, complaint, answer, motion
or other pleadings in any legal proceeding relating to the Obligations, any Loan
Party, any of the Company's' Subsidiaries and related to or arising out of the
transactions contemplated hereby or by any of the other Loan Documents or
Related Documents; and (iv) in taking any other action in or with respect to any
suit or proceeding (bankruptcy or otherwise) described in clauses (i) through
(iii) above.

     SECTION 9.4. INDEMNITIES.

     (a) The Borrowers agrees to indemnify and hold harmless the Administrative
Agent, the Syndication Agent, the Documentation Agent, each Lender and each
Issuer and each of their respective Affiliates, and each of the directors,
officers, employees, agents, representative, attorneys, consultants and advisors
of or to any of the foregoing (including those retained in connection with the
satisfaction or attempted satisfaction of any of the conditions set forth in
Article III) (each such Person being an "Indemnitee") from and against any and
all claims, damages, liabilities, obligations, losses, penalties, actions,
judgments, suits, costs, disbursements and expenses of any kind or nature
(including fees and disbursements of counsel to any such Indemnitee) which may
be imposed on, incurred by or asserted against any such Indemnitee in connection
with or arising out of any investigation, litigation or proceeding, whether or
not any such Indemnitee is a party thereto, whether direct, indirect, or
consequential and whether based on any federal, state or local law or other
statutory regulation, securities or commercial law or regulation, or under
common law or in equity, or on contract, tort or otherwise, in any manner
relating to or arising out of this Agreement, any other Loan Document, any
Obligation, any Letter of Credit, any Related Document, or any act, event or
transaction related or attendant to any thereof, or the use or intended use of
the proceeds of the Loans or Letters of Credit or in connection with any
investigation of any potential matter covered hereby (collectively, the
"Indemnified Matters"); provided, however, that the Borrowers shall not have any
obligation under this Section 9.4 to an Indemnitee with respect to any
Indemnified Matter caused by or resulting from the gross negligence, willful
misconduct or breach of its obligations under any Loan Document of that
Indemnitee, as determined by a court of competent jurisdiction in a final
non-appealable judgment or order. Without limiting the foregoing, Indemnified
Matters include (i) all Environmental Liabilities and Costs arising from or
connected with the past, present or future operations of the Company or any of
its Subsidiaries involving any property subject to a Collateral Document, or
damage to real or personal property or natural resources or harm or injury
alleged to have resulted from any Release of Contaminants on, upon or into such
property or any contiguous real estate; (ii) any costs or liabilities incurred
in connection with any Remedial Action concerning the Company or any of its
Subsidiaries; (iii) any costs or liabilities incurred in connection with any
Environmental Lien; (iv) any costs or liabilities incurred in connection with
any other matter under any Environmental Law, including CERCLA and applicable
state property transfer laws, whether, with respect to any of such matters, such
Indemnitee is a mortgagee pursuant to any leasehold mortgage, a mortgagee in
possession, the successor in interest to the Company or any of its Subsidiaries,
or the owner, lessee or operator of any property of the Company or any of its
Subsidiaries by virtue of foreclosure, except, with respect to those matters
referred to in clauses (i), (ii), (iii) and (iv) above, to the extent incurred
following (A) foreclosure by the Administrative Agent any Lender or any

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<PAGE>   100

Issuer, or the Administrative Agent, any Lender or any Issuer having become the
successor in interest to the Company or any of its Subsidiaries, and (B)
attributable solely to acts of the Administrative Agent, such Lender or such
Issuer or any agent on behalf of the Administrative Agent, or such Lender.

     (b) The Borrowers shall indemnify the Administrative Agent, the Lenders and
each Issuer for, and hold the Administrative Agent, the Lenders and each Issuer
harmless from and against, any and all claims for brokerage commissions, fees
and other compensation made against the Administrative Agent, the Lenders and
the Issuers for any broker, finder or consultant with respect to any agreement,
arrangement or understanding made by or on behalf of any Loan Party or any of
its Subsidiaries in connection with the transactions contemplated by this
Agreement.

     (c) The Administrative Agent, Lender and each Issuer agree that in the
event that any such investigation, litigation or proceeding set forth in
subparagraph (b) above is asserted or threatened in writing or instituted
against it or any other Indemnitee, or any Remedial Action, is requested of it
or any of its officers, directors, Administrative Agents and employees, for
which any Indemnitee may desire indemnity or defense hereunder, such Indemnitee
shall promptly notify the Borrowers in writing.

     (d) The Borrowers, at the request of any Indemnitee, shall have the
obligation to defend against such investigation, litigation or proceeding or
requested Remedial Action and the Borrowers, in any event, may participate in
the defense thereof with legal counsel of the Borrowers' choice. In the event
that such Indemnitee requests the Borrowers to defend against such
investigation, litigation or proceeding or requested Remedial Action, the
Borrowers shall promptly do so and such Indemnitee shall have the right to have
legal counsel of its choice participate in such defense. No action taken by
legal counsel chosen by such Indemnitee in defending against any such
investigation, litigation or proceeding or requested Remedial Action, shall
vitiate or in any way impair the Borrowers' obligation and duty hereunder to
indemnify and hold harmless such Indemnitee.

     (e) Each Borrowers agrees that any indemnification or other protection
provided to any Indemnitee pursuant to this Agreement (including pursuant to
this Section 9.4) or any other Loan Document shall (i) survive payment in full
of the Obligations and (ii) inure to the benefit of any Person who was at any
time an Indemnitee under this Agreement or any other Loan Document.

     SECTION 9.5. LIMITATION OF LIABILITY. Each Borrower agrees that no
Indemnitee shall have any liability (whether direct or indirect, in contract,
tort or otherwise) to any Loan Party or any of their respective Subsidiaries or
any of their equity holders or creditors for or in connection with the
transactions contemplated hereby and in the other Loan Documents, the Mexican
Intercreditor Agreement and Related Documents, except to the extent such
liability is found in a final judgment by a court of competent jurisdiction to
have resulted from such Indemnitee's gross negligence, willful misconduct or
breach of its obligations under any Loan Document or the Mexican Intercreditor
Agreement. In no event, however, shall any Indemnified Party be liable on any
theory of liability for any special, indirect, consequential or punitive damages
and each Borrower hereby waives, releases and agrees (for itself and on behalf
of its Subsidiaries) not to sue upon any such claim for any such damages,
whether or not accrued and whether or not known or suspected to exist in its
favor.

     SECTION 9.6. RIGHT OF SET-OFF. Upon the occurrence and during the
continuance of any Event of Default each Lender and each Affiliate of a Lender
is hereby authorized at any time and from time to time, to the fullest extent
permitted by law, to set off and apply any and all deposits (general or special,
time or demand, provisional or final) at any time held and other indebtedness at
any time owing by such Lender or its Affiliates to or for the credit or the
account of the Borrowers against any and all of the Obligations now or hereafter
existing whether or not such Lender shall have made any demand under this
Agreement or any other Loan Document and although such Obligations may be
unmatured. Each Lender agrees promptly to notify the Borrowers after any such
set-off and application made by such Lender or its Affiliates; provided,
however, that the failure to give such notice shall not affect the validity

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<PAGE>   101

of such set-off and application. The rights of each Lender under this Section
9.6 are in addition to the other rights and remedies (including other rights of
set-off) which such Lender may have.

     SECTION 9.7. SHARING OF PAYMENTS, ETC.

     (a) If any Lender shall obtain any payment (whether voluntary, involuntary,
through the exercise of any right of set-off or otherwise) on account of the
Term Loans or Revolving Loans made by it (other than pursuant to Sections 2.15,
2.16 or 2.17) in excess of its Ratable Portion of payments obtained by all the
Lenders on account of such Obligations, such Lender (a "Purchasing Lender")
shall forthwith purchase from the other Lenders (each, a "Selling Lender") such
participations in their Loans or other Obligations as shall be necessary to
cause such Purchasing Lender to share the excess payment ratably with each of
them.

     (b) If all or any portion of any payment received by a Purchasing Lender is
thereafter recovered from such Purchasing Lender, such purchase from each
Selling Lender shall be rescinded and such Selling Lender shall repay to the
Purchasing Lender the purchase price to the extent of such recovery together
with an amount equal to such Selling Lender's ratable share (according to the
proportion of (i) the amount of such Selling Lender's required repayment to (ii)
the total amount so recovered from the Purchasing Lender) of any interest or
other amount paid or payable by the purchasing Lender in respect of the total
amount so recovered.

     (c) Each Borrowers agrees that any Purchasing Lender so purchasing a
participation from a Selling Lender pursuant to this Section 9.7 may, to the
fullest extent permitted by law, exercise all its rights of payment (including
the right of set-off) with respect to such participation as fully as if such
Lender were the direct creditor of the Borrowers in the amount of such
participation.

     SECTION 9.8. NOTICES, ETC. All notices, demands, requests and other
communications provided for in this Agreement shall be given in writing, or by
any telecommunication device capable of creating a written record, and addressed
to the party to be notified as follows:

     (a) if to the Borrowers:

         Oxford Automotive, Inc
         1250 Stephenson Highway
         Troy, Michigan  48083
         Attention: Aurelian Bukatko
         Telecopy no: 248-577-3465

     (b) if to any Lender, at its Domestic Lending Office specified opposite its
name on Schedule II or on the signature page of any applicable Assignment and
Acceptance;

     (c) if to any Issuer, at the address set forth under its name page hereof
on Schedule II; and

     (d) if to the Administrative Agent:

         Citicorp USA, Inc.
         c/o Salomon Smith Barney Inc.
         390 Greenwich Street, First Floor
         New York, New York 10013
         Attention: Mark Floyd
         Telecopy no: (212) 723-8547

                                       96
<PAGE>   102
                           with a copy to:

                           Weil, Gotshal & Manges LLP
                           767 Fifth Avenue,
                           New York, New York  10153-0119
                           Attention:  Daniel S. Dokos, Esq.
                           Telecopy no:     (212) 310-8007

or at such other address as shall be notified in writing (i) in the case of the
Borrowers and the Administrative Agent, to the other parties and (ii) in the
case of all other parties, to the Borrowers and the Administrative Agent. All
such notices and communications shall be effective upon personal delivery (if
delivered by hand, including any overnight courier service), when deposited in
the mails (if sent by mail), or when properly transmitted (if sent by a
telecommunications device); provided, however, that notices and communications
to the Administrative Agent pursuant to Article II or VIII shall not be
effective until received by the Administrative Agent.

         SECTION 9.9. NO WAIVER; REMEDIES. No failure on the part of any Lender,
Issuer or the Administrative Agent to exercise, and no delay in exercising, any
right hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

         SECTION 9.10. BINDING EFFECT. This Agreement shall become effective
when it shall have been executed by the Borrowers and the Administrative Agent
and when the Administrative Agent shall have been notified by each Lender that
such Lender has executed it and thereafter shall be binding upon and inure to
the benefit of the Borrowers, the Administrative Agent and each Lender and their
respective successors and assigns, except that no Borrower shall not have the
right to assign its rights hereunder or any interest herein without the prior
written consent of the Lenders.

         SECTION 9.11. GOVERNING LAW. This Agreement and the rights and
obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the law of the State of New York.

         SECTION 9.12. SUBMISSION TO JURISDICTION; SERVICE OF PROCESS; JUDGMENT
CURRENCY.

         (a) Any legal action or proceeding with respect to this Agreement or
any other Loan Document may be brought in the courts of the State of New York or
of the United States of America for the Southern District of New York, and, by
execution and delivery of this Agreement, each Borrower hereby accepts for
itself and in respect of its property, generally and unconditionally, the
jurisdiction of the aforesaid courts. The parties hereto hereby irrevocably
waive any objection, including any objection to the laying of venue or based on
the grounds of forum non conveniens, which any of them may now or hereafter have
to the bringing of any such action or proceeding in such respective
jurisdictions.

         (b) Each Canadian Borrower hereby irrevocably designates, appoints and
empowers CT Corporation System (telephone no: 212 894 8440) (telecopy no: 212
894 8790) (the "Process Agent"), in the case of any suit, action or proceeding
brought in the United States of America as its designee, appointee and agent to
receive, accept and acknowledge receipt thereof for and on its behalf, and in
respect of its property, service of any and all legal process, summons, notices
and documents that may be served in any action or proceeding arising out of or
in connection with this Agreement or any Loan Document. Such service may be made
by mailing (by registered or certified mail, postage prepaid) or delivering a
copy of such process to such Borrower in care of the Process Agent at the
Process Agent's above address, and each Canadian Borrower hereby irrevocably
authorizes and directs the Process Agent to accept such service on its behalf.
As an alternative method of service, each Borrower irrevocably

                                       97
<PAGE>   103

consents to the service of any and all process in any such action or proceeding
by the mailing (by registered or certified mail, postage prepaid) of copies of
such process to the Process Agent or each Borrower at its address specified in
Section 9.8. Each Borrower agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law.

         (c) Nothing contained in this Section 9.12 shall affect the right of
the Administrative Agent or any Lender to serve process in any other manner
permitted by law or commence legal proceedings or otherwise proceed against the
Borrowers or any other Loan Party in any other jurisdiction.

         (d) If for the purposes of obtaining judgment in any court it is
necessary to convert a sum due hereunder in Dollars into another currency, the
parties hereto agree, to the fullest extent that they may effectively do so,
that the rate of exchange used shall be that at which in accordance with normal
banking procedures the Administrative Agent could purchase Dollars with such
other currency at the spot rate of exchange quoted by the Administrative Agent
at 11:00 a.m. (New York City time) on the Business Day preceding that on which
final judgment is given, for the purchase of Dollars, for delivery two Business
Days thereafter.

         SECTION 9.13. WAIVER OF JURY TRIAL. EACH OF THE ADMINISTRATIVE AGENT,
THE SYNDICATION AGENT, THE DOCUMENTATION AGENT, THE LENDERS, THE ISSUERS AND THE
BORROWERS IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING WITH
RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.

         SECTION 9.14. MARSHALING; PAYMENTS SET ASIDE. None of the
Administrative Agent, any Lender or any Issuer shall be under any obligation to
marshal any assets in favor of the Borrowers or any other party or against or in
payment of any or all of the Obligations. To the extent that the Borrowers make
a payment or payments to the Administrative Agent, the Lenders or the Issuers or
any of such Persons receives payment from the proceeds of the Collateral or
exercise their rights of setoff, and such payment or payments or the proceeds of
such enforcement or setoff or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside or required to be repaid to
a trustee, receiver or any other party, then to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens,
right and remedies therefor, shall be revived and continued in full force and
effect as if such payment had not been made or such enforcement or setoff had
not occurred.

         SECTION 9.15. SECTION TITLES. The Section titles contained in this
Agreement are and shall be without substantive meaning or content of any kind
whatsoever and are not a part of the agreement between the parties hereto.

         SECTION 9.16. EXECUTION IN COUNTERPARTS. This Agreement may be executed
in any number of counterparts and by different parties in separate counterparts,
each of which when so executed shall be deemed to be an original and all of
which taken together shall constitute one and the same agreement. Signature
pages may be detached from multiple separate counterparts and attached to a
single counterpart so that all signature pages are attached to the same
document.

         SECTION 9.17. DOCUMENTS EVIDENCE THE SAME INDEBTEDNESS. Upon its
effectiveness, this Agreement amends and restates in its entirety the Existing
Credit Agreement and the Notes issued under this Agreement, if any, amend and
restate the "Notes" (as defined in the Existing Credit Agreement) issued under
the Existing Credit Agreement. This Agreement and the Notes, if any, do not
constitute and shall not be construed to evidence a novation of or a payment and
readvance of the loan principal, interest and other sums, if any, heretofore
outstanding under the Existing Credit Agreement, it being the intention of the
Borrowers, and by their signature hereto, the Administrative Agent and Lenders,
that this Agreement provide for the terms and conditions of, and the Notes
evidence, upon the effectiveness of this Agreement, the same Indebtedness as was
then outstanding under the Existing Credit

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<PAGE>   104

Agreement. Each Lender shall surrender the original "Notes" (as defined in the
Existing Credit Agreement) outstanding on the Effective Date issued to it under
the Existing Credit Agreement.

         SECTION 9.18. ENTIRE AGREEMENT. This Agreement, together with all of
the other Loan Documents, the Mexican Intercreditor Agreement and all
certificates and documents delivered hereunder or thereunder, embodies the
entire agreement of the parties and supersedes all prior agreements and
understandings relating to the subject matter hereof; provided, however, the
Company's obligations under the Commitment Letter dated June 9, 2000 addressed
to the Company from Citicorp and the Arranger and accepted by the Company on
June 9, 2000 that survive the termination or expiration of such letter shall
continue to apply to the Company. Delivery of an executed signature page of this
Agreement by facsimile transmission shall be as effective as delivery of a
manually executed counterpart hereof. A set of the copies of this Agreement
signed by all parties shall be lodged with the Borrowers and the Administrative
Agent.

         SECTION 9.19. CONFIDENTIALITY. Each Lender and the Administrative Agent
agree to keep information obtained by it pursuant hereto and the other Loan
Documents confidential in accordance with such Lender's or the Administrative
Agent's, as the case may be, customary practices and agrees that it will only
use such information in connection with the transactions contemplated by this
Agreement and not disclose any of such information other than (a) to such
Lender's or the Administrative Agent's, as the case may be, employees,
representatives and agents who are or are expected to be involved in the
evaluation of such information in connection with the transactions contemplated
by this Agreement and who are advised of the confidential nature of such
information, (b) to the extent such information presently is or hereafter
becomes available to such Lender or the Administrative Agent, as the case may
be, on a non-confidential basis from a source other than the Borrowers, (c) to
the extent disclosure is required by law, regulation or judicial order or
requested or required by bank regulators or auditors, (d) to assignees or
participants or potential assignees or participants who agree to be bound by the
provisions of this Section 9.19 or (e) with the consent of the Company.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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<PAGE>   105

                                   Schedule I

                                   Commitments
<TABLE>
<CAPTION>
-------------------------- --------------------------------------- --------------------------------- -------------------------------
                           REVOLVING CREDIT
                           COMMITMENT                              TERM LOAN COMMITMENT              TOTAL COMMITMENT
-------------------------- --------------------------------------- --------------------------------- -------------------------------
<S>                        <C>                                     <C>                               <C>
The Bank of                US Dollars: $10,714,285.71
Montreal                   CAD$ Sub-Limit: $6,000,000.00           US Dollars: $4,285,714.29         US Dollars: $15,000,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------
The Bank of                US Dollars: $10,714,285.71
New York                   CAD$ Sub-Limit: N/A                     US Dollars: $4,285,714.29         US Dollars: $15,000,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------
The Bank of Nova Scotia    US Dollars: $8,571,428.57
                           CAD$ Sub-Limit: $4,800,000.00           US Dollars: $3,428,571.43         US Dollars: $12,000,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------
Citicorp                   US Dollars: $24,714,285.73
USA, Inc.                  CAD$ Sub-Limit: $13,840,000.00          US Dollars: $9,885,714.27         US Dollars: $34,600,000.0
-------------------------- --------------------------------------- --------------------------------- -------------------------------
Comerica                   US Dollars: $17,857,142.86
Bank                       CAD$ Sub-Limit: N/A                     US Dollars: $7,142,857.14         US Dollars: $25,000,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------
Credit Suisse First        US Dollars: $14,285,714.25
Boston                     CAD$ Sub-Limit: $8,000,000.00           US Dollars: $5,714,285.71         US Dollars: $20,000,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------
                           US Dollars: $10,714,285.71
Deutsche Bank              CAD$ Sub-Limit: $6,000,000.00           US Dollars: $4,285,714.29         US Dollars: $15,00,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------
Fifth Third Bank
Northwestern               US Dollars: $7,142,857.14
Ohio, N.A.                 CAD$ Sub-Limit: N/A                     US Dollars: $2,857,142.86         US Dollars: $10,000,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------
Morgan Guaranty
Trust Company              US Dollars: $10,714,285.71
of New York                CAD$ Sub-Limit: $6,000,000.00           US Dollars: $4,285,714.29         US Dollars: $15,000,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------

National Bank              US Dollars: $9,571,428.57
of Canada                  CAD$ Sub-Limit: $5,360,000.00           US Dollars: $3,828,571.43         US Dollars: $13,400,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------

                           TOTAL US                                TOTAL                             TOTAL
                              DOLLARS: $125,000,000.00             US DOLLARS: $50,000,000.00        US DOLLARS: $175,000,000.00
                           TOTAL CAD$ SUB-LIMIT:
                               $50,000,000.00
-------------------------- --------------------------------------- --------------------------------- -------------------------------
</TABLE>

                                      100
<PAGE>   106

                                   Schedule II

               Applicable Lending Offices and Addresses for Notice

1.       BANK OF MONTREAL:

Domestic Lending Office:

115 S. LaSalle Street
Chicago, IL  60603
Attention:  Susan Hewett
Telephone:  (312) 750-5903
Telecopy:  (312) 750-6057

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

(Same as above)

Notices:

(Same as above)

2.       THE BANK OF NEW YORK:

Domestic Lending Office:

One Wall Street, 22nd Floor
New York, NY  10286
Attention:  Joshua Feldman
Telephone:  (212) 635-7906
Telecopy:  (212) 635-6434

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

Not applicable.

Notices:

(Same as Domestic Lending Office)

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<PAGE>   107

3.       THE BANK OF NOVA SCOTIA:

Domestic Lending Office:

600 Peachtree Street N.E., Suite 2700
Atlanta, GA  30308
Attention:  Allyson Mohan
Telephone:  (404) 877-1549
Telecopy:  (404) 888-8998

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

(Same as above)

Notices:

181 W. Madison, Suite 3700
Chicago, IL  60614
Attention:  Ted Plax
Telephone:  (312) 201-4176
Telecopy:  (312) 201-4108

4.       CITICORP USA, INC.:

Domestic Lending Office:

2 Penn's Way, Suite 200
New Castle, DE  19720
Attention:  Brian Maxwell
Telephone:  (302) 894-6023
Telecopy:  (302) 894-6120

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

CITIBANK CANADA
c/o Citicorp USA, Inc.
(Same as above)

Notices:

c/o Salomon Smith Barney Inc.
390 Greenwich Street, First Floor
New York, NY  10013
Attention: Mark Floyd
Telephone:  (212) 723-6638
Telecopy:  (212) 723-8547

                                      102
<PAGE>   108

5.       COMERICA BANK:

Domestic Lending Office:

500 Woodward Avenue, 6th Floor - MC-3240
Detroit, MI  48226
Attention:  Alan S. Carlyle
Telephone:  (313) 222-4892
Telecopy:  (313) 222-3503

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

Not applicable.

Notices:

(Same as Domestic Lending Office)

6.       CREDIT SUISSE FIRST BOSTON:

Domestic Lending Office:

11 Madison Avenue
New York, NY  10010-3629
Attention:  William Lutkins
Telephone:  (212) 325-9705
Telecopy:  (212) 325-8319

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

CREDIT SUISSE FIRST BOSTON CANADA
1 First Canadian Place, Suite 3000
Toronto, Ontario  M5X1C9
Attention:  Bill McFarland
Telephone:  (416) 352-4528
Telecopy:  (416) 352-4576

Notices:

(Same as Domestic Lending Office)

                                      103
<PAGE>   109

7.       DEUTSCHE BANK:

Domestic Lending Office:

BANKERS TRUST COMPANY
233 S. Wacker Drive, Suite 8400
Chicago, IL  60606
Attention:  Daniel Horn
Telephone:  (312) 993-8095
Telecopy:  (312) 993-8350

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

DEUTSCHE BANK CANADA
222 Bay Street, Suite 1100
Toronto, Ontario  Canada M5K 1H6
Attention:  Marcellus Leung
Telephone:  (416) 682-8252
Telecopy:  (416) 682-8484

Notices:

BANKERS TRUST COMPANY
233 S. Wacker Drive, Suite 8400
Chicago, IL  60606
Attention:  Linda Stahulak
Telephone:  (312) 993-8109
Telecopy:  (312) 993-8114

DEUTSCHE BANK CANADA
222 Bay Street, Suite 1100
Toronto, Ontario  Canada M5K 1H6
Attention:  Karyn Curran
Telephone:  (416) 682-8190
Telecopy:  (416) 682-8080

8.       FIFTH THIRD BANK, NORTHWESTERN OHIO, N.A.:

Domestic Lending Office:

606 Madison
Toledo, OH  43604
Attention:  Christopher M. Prisby
Telephone:  (419) 259-7141
Telecopy:  (419) 259-7134

Eurodollar Lending Office:

(Same as above)

                                      104
<PAGE>   110

Canadian Dollar Lending Office:

Not applicable.

Notices:

606 Madison
Toledo, OH  43604
Attention:  Sandie Heredia
Telephone:  (419) 259-7147
Telecopy:  (419) 259-7134

9.       MORGAN GUARANTY TRUST COMPANY OF NEW YORK:

Domestic Lending Office:

60 Wall Street
New York, NY  10260
Attention:  Kira Hindsley
Telephone:  (302) 634-4264
Telecopy:  (302) 634-4300

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

JP Morgan Canada
Royal Bank Plaza, Suite 2200
Toronto, Ontario Canada M5J 2J2
Attention:  Kira Hindsley
Telephone:  (302) 634-4264
Telecopy:  (302) 634-4300

Notices:

500 Stanton Christiana Road
Newark, DE  19713
Attention:  Victoria Fedele
Telephone:  (302) 634-4225
Telecopy:  (302) 634-1095

10.      NATIONAL BANK OF CANADA:

Domestic Lending Office:

27777 Franklin Road, Suite 1570
Southfield, MI  48034
Attention:  Jeffrey C. Angell, V.P.
Telephone:  (248) 354-4800
Telecopy:  (248) 354-1768

                                      105
<PAGE>   111

Eurodollar Lending Office:

(Same as above)

Canadian Dollar Lending Office:

350 Burnhamthorpe Road West, Suite 216
Mississauga, Ontario Canada L5B 3J1
Attention:  Timothy Lohn, V.P./Mgr.
Telephone:  (905) 272-1515
Telecopy:  (905) 272-8522

Notices:

(Same as Domestic Lending Office)

                                      106
<PAGE>   112

                                  Schedule III

                            Unrestricted Subsidiaries

1.       Oxford Automotive Holdings Espana, S.L.
2.       Eines De Metall, S.L.
3.       Wackenhut GmbH

                                      107<PAGE>   1
                                                                     EXHIBIT 4.2

               AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

                           DATED AS OF AUGUST 1, 2000

                                      AMONG

                             OXFORD AUTOMOTIVE, INC.
                                       AND
                EACH OTHER GRANTOR FROM TIME TO TIME PARTY HERETO
                                   AS GRANTORS

                                       AND

                               CITICORP USA, INC.
                               AS COLLATERAL AGENT

                           WEIL, GOTSHAL & MANGES LLP
                                767 FIFTH AVENUE
                          NEW YORK, NEW YORK 10153-0119

<PAGE>   2

                                                                  EXECUTION COPY

<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

<S>                        <C>                                                                         <C>
ARTICLE I.                 Defined Terms................................................................3

         Section 1.1       Definitions..................................................................3

         Section 1.2       Certain Other Terms..........................................................8

ARTICLE II.                Grant of Security Interest...................................................9

         Section 2.1       Collateral...................................................................9

         Section 2.2       Grant of Security Interest in Collateral....................................10

         Section 2.3       Cash Collateral Accounts....................................................10

ARTICLE III.               Representations and Warranties..............................................11

         Section 3.1       Title; No Other Liens.......................................................11

         Section 3.2       Perfection and Priority.....................................................11

         Section 3.3       State of Incorporation; Chief Executive Office..............................11

         Section 3.4       Inventory and Equipment.....................................................12

         Section 3.5       Pledged Collateral..........................................................12

         Section 3.6       Accounts....................................................................12

         Section 3.7       No Other Names..............................................................13

         Section 3.8       Intellectual Property.......................................................13

         Section 3.9       Deposit Accounts; Control Accounts..........................................13

ARTICLE IV.                Covenants...................................................................13

         Section 4.1       Generally...................................................................13

         Section 4.2       Maintenance of Perfected Security Interest; Further Documentation...........14

         Section 4.3       Changes in Locations, Name, Etc.............................................14

         Section 4.4       Pledged Collateral..........................................................15

         Section 4.5       Control Accounts; Blocked Accounts..........................................16

         Section 4.6       Accounts....................................................................16

         Section 4.7       Delivery of Instruments and Chattel Paper...................................17

         Section 4.8       Intellectual Property.......................................................17

         Section 4.9       Vehicles....................................................................19

         Section 4.10      Payment of Obligations......................................................19

ARTICLE V.                 Remedial Provisions.........................................................19

         Section 5.1       Code and Other Remedies.....................................................19
</TABLE>

                                       i
<PAGE>   3
<TABLE>
<S>                                                                                                   <C>
         Section 5.2       Accounts and Payments in Respect of General Intangibles.....................20

         Section 5.3       Pledged Collateral..........................................................21

         Section 5.4       Proceeds to be Turned Over to Collateral Agent..............................22

         Section 5.5       Registration Rights.........................................................22

         Section 5.6       Waiver; Deficiency..........................................................23

ARTICLE VI.                The Collateral Agent........................................................23

         Section 6.1       Collateral Agent's Appointment as Attorney-in-Fact..........................23

         Section 6.2       Duty of Collateral Agent....................................................25

         Section 6.3       Execution of Financing Statements...........................................25

         Section 6.4       Authority of Collateral Agent...............................................25

ARTICLE VII.               Miscellaneous...............................................................25

         Section 7.1       Amendments in Writing.......................................................25

         Section 7.2       Notices.....................................................................25

         Section 7.3       No Waiver by Course of Conduct; Cumulative Remedies.........................26

         Section 7.4       Successors and Assigns......................................................26

         Section 7.5       Counterparts................................................................26

         Section 7.6       Severability................................................................26

         Section 7.7       Section Headings............................................................26

         Section 7.8       Entire Agreement............................................................26

         Section 7.9       Governing Law...............................................................26

         Section 7.10      Additional Grantors.........................................................26

         Section 7.11      Release of Collateral.......................................................27

         Section 7.12      Reinstatement...............................................................27
</TABLE>

                              ANNEXES AND SCHEDULES

            Annex 1          Blocked Account Letter
            Annex 2          Control Account Letter
            Annex 3          Pledge Amendment
            Annex 4          Joiner Agreement
            Annex 5          Short Form Copyright Security Agreement
            Annex 6          Short Form Patent Security Agreement
            Annex 7          Short Form Trademark Security Agreement

            Schedule 1       State of Incorporation; Principal Executive Office
            Schedule 2       Pledged Collateral
            Schedule 3       Filings
            Schedule 4       Location of Inventory and Equipment
            Schedule 5       Intellectual Property
            Schedule 6       Bank Accounts; Control Accounts

                                       ii
<PAGE>   4

               AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT

                  AMENDED AND RESTATED PLEDGE AND SECURITY AGREEMENT, dated as
of August 1, 2000, by OXFORD AUTOMOTIVE, INC., a Michigan corporation (the
"Company"), LOBDELL EMERY CORPORATION, a Michigan corporation, LEWIS EMERY
CAPITAL CORPORATION, a Michigan corporation, LASERWELD INTERNATIONAL, L.L.C., a
Michigan limited liability company, PARALLEL GROUP INTERNATIONAL, INC., an
Indiana corporation, CONCEPT MANAGEMENT CORPORATION, a Michigan corporation,
CREATIVE FABRICATION CORPORATION, a Tennessee corporation, WINCHESTER
FABRICATION CORPORATION, a Michigan Corporation, OASP, INC., a Michigan
corporation, OASP II, Inc., a Michigan corporation, RPI HOLDINGS, INC., a
Michigan corporation, RPI, INC., a Michigan corporation, PRUDENVILLE
MANUFACTURING INC., a Michigan corporation, OXFORD SUSPENSION, INC., a Michigan
corporation, HOWELL INDUSTRIES, INC., a Michigan corporation, CE TECHNOLOGIES,
INC., a Michigan corporation, TOOL AND ENGINEERING COMPANY, a Michigan
corporation, and each of the other entities listed on the signature pages hereof
or which becomes a party hereto pursuant to Section 7.10 (each a "Grantor" and,
collectively, the "Grantors"), in favor of CITICORP USA, INC. ("Citicorp"), as
agent for the Secured Parties (as defined below) (in such capacity, the
"Collateral Agent").

                              W I T N E S S E T H:

                  WHEREAS, the Borrowers (as defined below) and the lenders
party thereto are parties to a Second Amended and Restated Credit Agreement
dated as of May 14, 1999 (as amended, the "Existing Credit Agreement") among the
Borrowers, the lenders party thereto, the issuers party thereto and Bank One,
Michigan, formerly known as NBD Bank, as Agent (the "Existing Agent");

                  WHEREAS, certain of the Grantors (the "Existing Grantors"),
have each entered into a Amended and Restated Pledge Agreement and Irrevocable
Proxy, each dated as of May 14, 1999, as amended (the "Existing Pledge
Agreements"), in favor of the Existing Agent for the benefit of the Existing
Agent and the lenders party to the Existing Credit Agreement, in connection with
the Existing Credit Agreement;

                  WHEREAS, the Existing Grantors (other than the Company), have
each entered into an Amended and Restated Guarantor Security Agreement, each
dated as of May 14, 1999, and the Company has entered into an Amended and
Restated Company Security Agreement, dated May 14, 1999 (collectively, the
"Existing Security Agreements"), each in favor of the Existing Agent for the
benefit of the Existing Agent and the lenders party to the Existing Credit
Agreement, in connection with the Existing Credit Agreement;

                  WHEREAS, (a) the Borrowers, the Existing Agent, the lenders
party to the Existing Credit Agreement, Citicorp and Citibank Canada (together
with Citicorp, the "Existing

                                       1
<PAGE>   5

Lenders") have concurrently herewith entered into the Master Assignment and
Acceptance dated as of the date hereof (the "Master Assignment Agreement")
pursuant to which the lenders party to the Existing Credit Agreement have
assigned all their right, title and interest in, to and under the Existing
Credit Agreement and such other documents and delegated all their respective
obligations thereunder to the Existing Lenders and the Existing Lenders have
accepted such assignment and assumed such obligations, and (b) the Existing
Agent, Bank One, Canada, formerly known as First Chicago NBD Bank, Canada, as
collateral agent for the Lender's party to the Existing Credit Agreement with
respect to collateral in Canada (the "Existing Canadian Agent"), the
Administrative Agent, the Collateral Agent, the Bank of Montreal as Funding
Agent and the Borrowers have concurrently herewith entered in to the Assignment
and Release Agreement dated the date hereof (the "Assignment and Release
Agreement") pursuant to which the Existing Agent and the Existing Canadian Agent
have each resigned as agent and has assigned all its rights, title and interest
in, to and under the Existing Credit Agreement and the "Loan Documents" (as
defined in the Existing Credit Agreement) and delegated all its obligations
thereunder with respect thereto to the Administrative Agent or the Collateral
Agent, as applicable, and the Administrative Agent or the Collateral Agent, as
the case may be, has accepted such assignment and delegation;

                  WHEREAS, the Borrowers, the Existing Lenders and the
Administrative Agent have agreed to amend and restate the Existing Credit
Agreement to provide for such amendments on the terms set forth in the Third
Amended and Restated Credit Agreement dated as of July 31 2000 (as the same may
be amended, restated, supplemented or otherwise modified from time to time, the
"Credit Agreement") among the Company and each of its Subsidiaries set forth on
the signature pages thereto (together with the Company, collectively, the
"Borrowers"), the Lenders and Issuers party thereto, Citicorp, as administrative
agent for the Lenders and Issuers (the "Administrative Agent") and as collateral
agent for the Secured Parties (the "Collateral Agent"), Comerica Bank, as
syndication agent for the Lenders and Issuers and Credit Suisse First Boston, as
documentation agent for the Lenders and Issuers, pursuant to which the Lenders
and Issuers have severally agreed to continue certain extensions of credit to
the Borrowers upon the terms and subject to the conditions set forth therein;

                  WHEREAS, the Existing Grantors, the Existing Lenders and the
Collateral Agent have agreed to amend and restate the Existing Pledge Agreements
and the Existing Security Agreements to provide for such amendments on the terms
set forth in this Agreement, which Agreement shall become effective upon the
Effective Date;

                  WHEREAS, it is the intent of the parties hereto that this
Agreement not constitute a novation of the obligations and liabilities existing
under the Existing Pledge Agreements or the Existing Security Agreements or
evidence payment of all or any of such obligations and liabilities, that this
Agreement amend and restate in its entirety the Existing Pledge Agreements and
the Existing Security Agreements, and that from and after the Effective Date the
Existing Pledge Agreements and the Existing Security Agreements be of no further
force or effect except as to evidence the granting of the Liens thereunder, the
incurrence of the obligations of the parties thereto thereunder and the
representations and warranties made thereunder;

                  WHEREAS, the Grantors are party to certain Loan Documents (as
defined in the Credit Agreement) pursuant to which they have guaranteed the
Obligations;

                  WHEREAS, it is a condition precedent to the obligation of the
Lenders and the Issuers to make and continue their respective extensions of
credit to the Borrowers under the

                                       2
<PAGE>   6

Credit Agreement that the Grantors shall have executed and delivered this
Agreement to the Collateral Agent;

                  WHEREAS, pursuant to the Mexican Facility Documents, the
Mexican Lenders agreed to make certain extensions of credit to the Mexican
Subsidiaries upon the terms and subject to the conditions set forth therein;

                  WHEREAS, it is a condition precedent to the obligation of the
Mexican Lenders to continue their respective extensions of credit to the Mexican
Subsidiaries under the Mexican Facility Documents that the Company enter into
the Mexican Facility Guaranty pursuant to which it has guaranteed, inter alia,
the Mexican Facility Tranche A Loans and further that the Grantors shall have
executed and delivered this Agreement to the Collateral Agent in order to
provide security for the Mexican Facility Tranche A Guaranty Obligations (as
defined below); and

                  WHEREAS, pursuant to the Amended and Restated Mexican
Intercreditor Agreement, the Secured Parties have agreed to share certain
payments on the terms and conditions set forth therein and further, that the
Collateral Agent shall act as Collateral Agent for all of the Secured Parties;

                  NOW, THEREFORE, in consideration of the premises and (i) to
induce the Lenders, the Issuers, the Administrative Agent, the Collateral Agent,
the Syndication Agent and the Documentation Agent to enter into the Credit
Agreement and to induce the Lenders and the Issuers to make and continue their
respective extensions of credit to the Borrower thereunder and (ii) to induce
the Mexican Lenders to continue their respective extensions of credit to the
Mexican Subsidiaries under the Mexican Facility Documents, each Grantor hereby
agrees with the Collateral Agent as follows:

                  ARTICLE I. DEFINED TERMS

                  SECTION 1.1 DEFINITIONS.

                  (a) Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein have the meanings given to them in the Credit
Agreement.

                  (b) Terms used herein that are defined in the UCC have the
meanings given to them in the UCC, including the following which are capitalized
herein:

                  "Account Debtor"
                  "Accounts"
                  "Chattel Paper"
                  "Commodity Account"
                  "Commodity Intermediary"
                  "Control"
                  "Documents"
                  "Entitlement Holder"
                  "Entitlement Order"
                  "Equipment"
                  "Financial Asset"
                  "General Intangibles"
                  "Instruments"

                                       3
<PAGE>   7
                  "Inventory"
                  "Investment Property"
                  "Proceeds"
                  "Security"
                  "Securities Account"
                  "Securities Intermediary"
                  "Security Entitlement"

                  (c)    The following terms shall have the following meanings:

                  "Additional Pledged Collateral" means all shares of, limited
and/or general partnership interests in, and limited liability company interests
in, and all securities convertible into, and warrants, options and other rights
to purchase or otherwise acquire, stock of, either (a) any Person that, after
the date of this Agreement, as a result of any occurrence, becomes a direct
Subsidiary of any Grantor or (b) any issuer of Pledged Stock, any Partnership or
any LLC that are acquired by any Grantor after the date hereof; all certificates
or other instruments representing any of the foregoing; all Security
Entitlements of any Grantor in respect of any of the foregoing; all additional
indebtedness from time to time owed to any Grantor by any obligor on the Pledged
Notes and the instruments evidencing such indebtedness; and all interest, cash,
instruments and other property or Proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of the foregoing. Additional Pledged Collateral may be General Intangibles or
Investment Property.

                  "Agreement" means this Pledge and Security Agreement.

                  "Approved Securities Intermediary" means a Securities
Intermediary or Commodity Intermediary selected or approved by the Collateral
Agent and with respect to which a Grantor has delivered to the Collateral Agent
an executed Control Account Letter.

                  "Blockage Notice" has the meaning specified in each Blocked
Account Letter.

                  "Blocked Account" means a deposit account maintained by any
Grantor with a Blocked Account Bank which account is the subject of an effective
Blocked Account Letter, and includes all monies on deposit therein and all
certificates and instruments, if any, representing or evidencing such Blocked
Account.

                  "Blocked Account Bank" means a financial institution selected
or approved by the Collateral Agent and with respect to which a Grantor has
delivered to the Collateral Agent an executed Blocked Account Letter.

                  "Blocked Account Letter" means a letter agreement,
substantially in the form of Annex 1 (with such changes as may be agreed to by
the Collateral Agent), executed by the Grantor and the Collateral Agent and
acknowledged and agreed to by the relevant Blocked Account Bank.

                  "Cash Collateral Account" means any deposit account or
Securities Account established by the Collateral Agent as provided in Section
2.3 in which cash and Cash Equivalents may from time to time be on deposit or
held therein as provided in Section 5.2 or 5.4 or the Credit Agreement.

                                       4
<PAGE>   8

                  "Collateral" has the meaning specified in Section 2.1.

                  "Control Account" means a Securities Account or Commodity
Account maintained by any Grantor with an Approved Securities Intermediary which
account is the subject of an effective Control Account Letter, and includes all
Financial Assets held therein and all certificates and instruments, if any,
representing or evidencing the Financial Assets contained therein.

                  "Control Account Letter" means a letter agreement,
substantially in the form of Annex 2 (with such changes as may be agreed to by
the Collateral Agent), executed by the Grantor and the Collateral Agent and
acknowledged and agreed to by the relevant Approved Securities Intermediary.

                  "Copyrights" means (a) all copyrights arising under the laws
of the United States, any other country or any political subdivision thereof,
whether registered or unregistered and whether published or unpublished, all
registrations and recordings thereof, and all applications in connection
therewith, including all registrations, recordings and applications in the
United States Copyright Office or in any foreign counterparts thereof and (b)
the right to obtain all renewals thereof.

                  "Copyright Licenses" means any written agreement naming any
Grantor as licensor or licensee granting any right under any Copyright,
including the grant of rights to copy, publicly perform, create derivative
works, manufacture, distribute, exploit and sell materials derived from any
Copyright.

                  "Domestic Secured Obligations" (a) in the case of the Company,
the Secured Obligations of the Company other than those Secured Obligations of
the Company arising in respect of its guaranty of the Obligations of the
Canadian Borrowers and (b) in the case of each other Loan Party that is a
Domestic Subsidiary, the Secured Obligations of such Loan Party other than those
Secured Obligations of each such Loan Party in respect of its guaranty of the
Obligations of the Canadian Borrowers.

                  "Excluded Property" means Special Property; provided, however,
that "Excluded Property" shall not include:

                  (a)  the right to receive any payment of money (including,
         without limitation, general intangibles for money due or to become
         due); and

                  (b) any proceeds, products, offspring, accessions, rents,
         profits, income, benefits, substitutions or replacements of any Special
         Property (unless such proceeds, products, offspring, accessions, rents,
         profits, income, benefits, substitutions or replacements itself would
         constitute Special Property).

                  "Intellectual Property" means, collectively, all rights,
priorities and privileges of any Grantor relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise,
including Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks,
Trademark Licenses and trade secrets, and all rights to sue at law or in equity
for any infringement or other impairment thereof, including the right to receive
all proceeds and damages therefrom.

                                       5
<PAGE>   9
                  "Intercompany Note" means any promissory note evidencing loans
made by any Grantor to any of its Subsidiaries or another Grantor.

                  "LLC" means each limited liability company in which a Grantor
has an interest, including those set forth on Schedule 2.

                  "LCC Agreement" means each operating agreement with respect to
an LLC, as each agreement has heretofore been and may hereafter be amended,
restated, supplemented or otherwise modified from time to time.

                  "Material Intellectual Property" means Intellectual Property
owned by or licensed to a Grantor which is material to its business.

                  "Mexican Facility Tranche A Guaranty Obligations" means all
amounts, obligations, covenants and duties owing by the Company to any Mexican
Lender of every type and description, present or future, arising under the
Mexican Facility Tranche A Guaranty, whether direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising and however
acquired and includes all fees, interest, charges, expenses, fees, attorneys'
fees and disbursements and other sums chargeable to the Company under the
Mexican Facility Tranche A Guaranty.

                  "Partnership" means each partnership in which a Grantor has an
interest, including those set forth on Schedule 2.

                  "Partnership Agreement" means each partnership agreement
governing a Partnership, as each such agreement has heretofore been and may
hereafter be amended, restated, supplemented or otherwise modified.

                  "Patents" means (a) all letters patent of the United States,
any other country or any political subdivision thereof and all reissues and
extensions thereof, (b) all applications for letters patent of the United States
or any other country and all divisions, continuations and continuations-in-part
thereof, and (c) all rights to obtain any reissues or extensions of the
foregoing.

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

                  "Pledged Collateral" means, collectively, the Pledged Notes,
the Pledged Stock, the Pledged Partnership Interests, the Pledged LLC Interests,
any other Investment Property of any Grantor, all certificates or other
instruments representing any of the foregoing, all Security Entitlements of any
Grantor in respect of any of the foregoing, all dividends, interest
distributions, cash, warrants, rights, instruments and other property or
Proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of the foregoing excluding any interest
of any Guarantor in any Unrestricted Joint Venture. Pledged Collateral may be
General Intangibles or Investment Property.

                  "Pledged LLC Interests" means all of any Grantor's right,
title and interest as a member of any LLCs and all of such Grantor's right,
title and interest in, to and under any LLC Agreement to which it is a party.

                                       6
<PAGE>   10
                  "Pledged Notes" means all right, title and interest of any
Grantor, in the Instruments (including Intercompany Notes) evidencing all
Indebtedness owed to such Grantor, including all Indebtedness described on
Schedule 2, issued by the obligors named therein, and all interest, cash,
Instruments and other property or Proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such Indebtedness.

                  "Pledged Partnership Interests" shall mean all of any
Grantor's right, title and interest as a limited and/or general partner in all
Partnerships and all of such Grantor's right, title and interest in, to and
under any Partnership Agreements to which it is a party.

                  "Pledged Stock" means the shares of capital stock owned by
each Grantor, including all shares of capital stock listed on Schedule 2, but
excluding the capital stock of each Unrestricted Subsidiary.

                  "Related Contract" means each security agreement, lease and
other contract securing or otherwise relating to any Account.

                  "Securities Act" means the Securities Act of 1933, as amended.

                  "Secured Obligations" means (a) in the case of the Company,
the Obligations of the Company and the Mexican Facility Tranche A Guaranty
Obligations and (b) in the case of any Grantor that is a Domestic Subsidiary,
the obligations of such Grantor under the Guaranty and the other Loan Documents
to which it is a party and its obligations in respect of the Mexican Facility
Tranche A Guaranty Obligations.

                  "Secured Parties" means (a) the Lenders, the Issuers, the
Administrative Agent, the Collateral Agent and any other holder of any of the
Obligations and (b) if and to the extent set forth in the Mexican Intercreditor
Agreement, any holder of the Mexican Facility Tranche A Guaranty Obligations.

                  "Special Property" means:

                  (a) any permit, lease or license held by any Grantor (in each
         case permitted by the Credit Agreement) that validly prohibits the
         creation by the Grantors of a security interest therein;

                  (b) any permit, lease or license held by any Grantor (in each
         case permitted by the Credit Agreement) to the extent that any valid
         and enforceable law or regulation applicable thereto prohibits the
         creation of a security interest therein;

                  (c) Equipment owned by any Grantor on the date hereof that is
         subject to a purchase money Lien or a Capital Lease Obligation (in each
         case permitted by the Credit Agreement) if the contract or other
         agreement in which such Lien is granted (or in the documentation
         providing for such Capital Lease Obligation) validly prohibits the
         creation of any other Lien on such Equipment; and

                  (d) any assets, rights, revenues or property, real, personal
         or mixed, tangible or intangible, now owned by a Grantor which is
         subject to a negative pledge limitation as set forth in the Lobdell
         Preferred Stock Documents as in effect as of the date hereof;

                                       7
<PAGE>   11
in each case only to the extent, and for so long as, such permit, lease,
license, contract or other agreement, law or regulation validly prohibits the
creation of a Lien in such property in favor of the Collateral Agent (and upon
the termination of such prohibition (howsoever occurring)) such permit, lease,
license or equipment shall cease to be "Special Property".

                  "Trademarks" means (a) all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade styles,
service marks, logos and other source or business identifiers, and all goodwill
associated therewith, now existing or hereafter adopted or acquired, all
registrations and recordings thereof, and all applications in connection
therewith, whether in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof or any other
country or any political subdivision thereof, or otherwise, and all common-law
rights related thereto, and (b) the right to obtain all renewals thereof.

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

                  "UCC" means the Uniform Commercial Code as from time to time
in effect in the State of New York; provided, however, that in the event that,
by reason of mandatory provisions of law, any or all of the attachment,
perfection or priority of the Collateral Agent's and the Secured Parties'
security interest in any Collateral is governed by the Uniform Commercial Code
as in effect in a jurisdiction other than the State of New York, the term "UCC"
shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions hereof relating to such attachment, perfection or
priority and for purposes of definitions related to such provisions; provided,
further, that if the UCC is amended after the date hereof, such amendment will
not be given effect for the purposes of this Agreement if and to the extent the
result of such amendment would be to limit or eliminate any item of Collateral.

                  "Unrestricted Joint Venture" means Metalurgica Carabobo S.A.

                  "Vehicles" means all vehicles covered by a certificate of
title law of any state.

                  SECTION 1.2      CERTAIN OTHER TERMS.

                  (a) The words "herein," "hereof," "hereto" and "hereunder" and
similar words refer to this Agreement as a whole and not to any particular
Article, Section, subsection or clause in this Agreement.

                  (b) References herein to an Annex, Schedule, Article, Section,
subsection or clause refer to the appropriate Annex or Schedule to, or Article,
Section, subsection or clause in this Agreement.

                  (c) The meanings given to terms defined herein shall be
equally applicable to both the singular and plural forms of such terms.

                  (d) Where the context requires, provisions relating to the
Collateral or any part thereof, when used in relation to a Grantor, shall refer
to such Grantor's Collateral or the relevant part thereof.

                                       8
<PAGE>   12
                  (e) Any reference in this Agreement to a Loan Document shall
include all appendices, exhibits and schedules thereto, and, unless specifically
stated otherwise all amendments, restatements, supplements or other
modifications thereto, and as the same may be in effect at any and all times
such reference becomes operative.

                  (f) The term "including" means "including without limitation"
except when used in the computation of time periods.

                  (g) The terms "Lender," "Issuer," "Collateral Agent" and
"Secured Party" include their respective successors.

                  (h) References in this Agreement to any statute shall be to
such statute as amended or modified and in effect from time to time.

                  ARTICLE II. GRANT OF SECURITY INTEREST

                  SECTION 2.1 COLLATERAL. For the purposes of this Agreement,
all of the following property now owned or at any time hereafter acquired by a
Grantor or in which a Grantor now has or at any time in the future may acquire
any right, title or interests is collectively referred to as the "Collateral":

                  (a) all Accounts;

                  (b) all Inventory;

                  (c) all Equipment;

                  (d) all General Intangibles, including all Intellectual
Property and that portion of the Pledged Collateral constituting General
Intangibles;

                  (e) all Investment Property, including all Control Accounts
and that portion of the Pledged Collateral constituting Investment Property;

                  (f) all Documents, Instruments and Chattel Paper;

                  (g) all Cash Collateral Accounts, Blocked Accounts and other
deposit accounts;

                  (h) all Vehicles;

                  (i) all books and records pertaining to the other property
described in this Section 2.1;

                  (j) all other goods and personal property of such Grantor
whether tangible or intangible wherever located, including money, letters of
credit and all rights of payment or performance under letters of credit;

                  (k) all property of any Grantor held by Collateral Agent or
any Secured Party, including all property of every description, in the
possession or custody of or in transit to Collateral Agent or such Secured Party
for any purpose, including safekeeping, collection or

                                       9
<PAGE>   13

pledge, for the account of such Grantor, or as to which such Grantor may have
any right or power; and

                  (l) to the extent not otherwise included, all Proceeds and
products of each of the foregoing and all accessions to, substitutions and
replacements for, and rents, profits and products of, each of the foregoing, any
and all proceeds of any insurance, indemnity, warranty or guaranty payable to
the Grantor from time to time with respect to any of the foregoing.

                  Notwithstanding anything to the contrary contained in clauses
(a) through (l) above, the security interest created by this Agreement shall not
extend to, and the term "Collateral" shall not include, any Excluded Property
and (i) the Grantors shall from time to time at the request of the Collateral
Agent give written notice to the Collateral Agent identifying in reasonable
detail the Special Property (and stating in such notice that such Special
Property constitutes "Excluded Property") and shall provide to the Collateral
Agent such other information regarding the Special Property as the Collateral
Agent may reasonably request and (ii) from and after the Effective Date, the
Grantors shall not permit to become effective in any document creating,
governing or providing for any permit, lease or license, that would prohibit the
creation of a Lien on such permit, lease, license or equipment in favor of the
Collateral Agent unless such Grantor believes, in its reasonable judgment, that
such prohibition is usual and customary in transactions of such type).

                  SECTION 2.2 GRANT OF SECURITY INTEREST IN COLLATERAL. Each
Grantor, as collateral security for the full, prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or otherwise)
of the Secured Obligations of such Grantor, hereby collaterally assigns,
conveys, mortgages, pledges, hypothecates and transfers to the Collateral Agent
for the benefit of the Secured Parties, and grants to the Collateral Agent for
the benefit of the Secured Parties a lien on and security interest in, all of
its right, title and interest in, to and under the Collateral of such Grantor;
provided, however, that (i) only 65% of the Voting Stock of each Foreign
Subsidiary (other than Canadian Subsidiaries) owned by the Company or by any
other Grantor that is a Domestic Subsidiary shall be deemed to be pledged
hereunder as collateral security for the Domestic Secured Obligations of the
Company or such other Grantor, (ii) from and after the Canadian Subsidiary
Release Date, only 65% of the Voting Stock of each Canadian Subsidiary owned by
the Company or by any other Grantor that is a Domestic Subsidiary shall be
deemed to be pledged hereunder as collateral security for the Domestic Secured
Obligations of the Company or such other Grantor, and (iii) if and when the
prohibition which prevents the granting by such Grantor to the Collateral Agent
of a security interest in any Excluded Property is removed or otherwise
terminated, the Collateral Agent will be deemed to have, and at all times from
and after the date hereof to have had, a security interest in such Excluded
Property, as the case may be, and that, notwithstanding anything set forth
herein to the contrary, the Collateral Agent will be deemed to have, and at all
times from and after the date hereof to have had, a security interest in the
proceeds of such Excluded Property.

                  SECTION 2.3 CASH COLLATERAL ACCOUNTS. The Collateral Agent has
established a deposit account at Citibank, N.A., designated as "Citicorp USA,
Inc. - Oxford Automotive, Inc. Concentration Account", which account is under
its sole dominion and control. The Collateral Agent may establish one or more
other deposit accounts and one or more Securities Accounts with such
depositaries and Securities Intermediaries as it in its sole discretion shall
determine. Each such account shall be in the name of the Collateral Agent (but
may also have words referring to the Grantors and the account's purpose), and
shall be under its sole dominion and control. The Collateral Agent shall be the
entitlement holder with respect to each

                                       10
<PAGE>   14

such Securities Account and the only Person authorized to give entitlement
orders with respect thereto. Without limiting the foregoing, funds on deposit in
any Cash Collateral Account may be invested in Cash Equivalents at the direction
of the Collateral Agent and, except during the continuance of an Event of
Default, the Collateral Agent agrees with the Grantor to issue entitlement
orders for such investments in Cash Equivalents as requested by the Company;
provided, however, that the Collateral Agent shall not have any responsibility
for, or bear any risk of loss of, any such investment or income thereon. Neither
the Company nor any other Loan Party or Person claiming on behalf of or through
the Company or any other Loan Party shall have any right to demand payment of
any of the funds held in any Cash Collateral Account at any time prior to the
termination of all outstanding Letters of Credit and the payment in full of all
then outstanding and payable monetary Obligations. The Collateral Agent shall
apply all funds on deposit in a Cash Collateral Account as provided in the
Credit Agreement and except during the continuance of an Event of Default agrees
to cause any funds remaining on deposit therein after all Obligations then due
and payable have been satisfied and all Letter of Credit Obligations and
Bankers' Acceptance Obligations have been cash collateralized at 105% to be paid
at the written direction of the Company.

                  ARTICLE III. REPRESENTATIONS AND WARRANTIES

                  To induce the Lenders, the Issuers and the Administrative
Agent to enter into the Credit Agreement and to induce the Mexican Lenders to
continue their respective extensions of credit to the Mexican Subsidiaries under
the Mexican Facility Documents, each Grantor hereby represents and warrants to
the Collateral Agent, the Lenders, the Issuers and the other Secured Parties
that:

                  SECTION 3.1 TITLE; NO OTHER LIENS. Except for the Lien granted
to the Collateral Agent pursuant to this Agreement and the other Liens permitted
to exist on the Collateral under the Credit Agreement, (a) such Grantor is the
record and beneficial owner of the Pledged Collateral pledged by it hereunder
constituting Instruments or certificated securities and is the entitlement
holder of all such Pledged Collateral constituting Investment Property held in a
Securities Account and owns each other item of Collateral in which a Lien is
granted by it hereunder and (b) all such Collateral is owned free and clear of
any and all Liens.

                  SECTION 3.2 PERFECTION AND PRIORITY. The security interest
granted pursuant to this Agreement will constitute a valid and continuing
perfected security interest in favor of the Collateral Agent in the Collateral
for which perfection is governed by the UCC or filing with the United States
Copyright Office upon (i) the completion of the filings and other actions
specified on Schedule 3 (which, in the case of all filings and other documents
referred to on such schedule, have been delivered to the Collateral Agent in
completed and duly executed form), (ii) the delivery to the Collateral Agent of
all Collateral consisting of Instruments and certificated securities, in each
case properly endorsed for transfer to the Collateral Agent or in blank, (iii)
all appropriate filings having been made with the United States Copyright
Office. Such security interest will be prior to all other Liens on the
Collateral except for Customary Permitted Liens which have priority over the
Collateral Agent's Lien by operation of law or otherwise as permitted under the
Credit Agreement.

                  SECTION 3.3 STATE OF INCORPORATION; CHIEF EXECUTIVE OFFICE. On
the date hereof such Grantor's jurisdiction of organization and the location of
such Grantor's chief executive office or sole place of business is specified on
Schedule 1.

                                       11
<PAGE>   15

          SECTION 3.4 INVENTORY AND EQUIPMENT. On the date hereof, such
Grantor's Inventory and Equipment (other than mobile goods and Inventory or
Equipment in transit) are kept at the locations listed on Schedule 4.

          SECTION 3.5 PLEDGED COLLATERAL.

          (a) The Pledged Stock and, if any, Pledged Partnership Interests and
Pledged LLC Interests pledged hereunder by such Grantor constitutes that
percentage of the issued and outstanding equity of all classes of each issuer
thereof as set forth on Schedule 2.

          (b) All of the Pledged Stock, and, if any, Pledged Partnership
Interests and Pledged LLC Interests have been duly and validly issued and are
fully paid and nonassessable.

          (c) Each of the Pledged Notes constitutes the legal, valid and binding
obligation of the obligor with respect thereto, enforceable in accordance with
its terms, subject to the effects of bankruptcy, insolvency, fraudulent
conveyance, reorganization, moratorium and other similar laws relating to or
affecting creditors' rights generally, and general equitable principles (whether
considered in a proceeding in equity or at law).

          (d) All Pledged Stock, Pledged Partnership Interests and Pledged LLC
Interests held by such Grantor as of the date hereof are listed on Schedule 2.

          (e) All Pledged Collateral and, if applicable, any Additional Pledged
Collateral consisting of certificated securities or Instruments has been
delivered to the Collateral Agent in accordance with Section 4.4(a).

          (f) All Pledged Collateral held by a Securities Intermediary in a
Securities Account is in a Control Account.

          (g) Other than the Pledged Partnership Interests and the Pledged LLC
Interests that constitute General Intangibles, there is no Pledged Collateral
other than that represented by certificated securities or Instruments in the
possession of the Collateral Agent or that consisting of Financial Assets held
in a Control Account.

          (h) No Person other than the Collateral Agent has Control over any
Investment Property of such Grantor.

          (i) The LLC Agreement governing any Pledged LLC Interests and the
Partnership Agreement governing any Pledged Partnership Interests provide that,
upon the occurrence and during the continuance of an Event of Default, the
Collateral Agent shall be entitled to exercise all of the rights of the Grantor
granting the security interest therein, and that a transferee or assignee of a
membership interest or partnership interest, as the case may be, of such LLC or
Partnership, as the case may be, shall become a member or partner, as the case
may be, of such LLC or Partnership, as the case may be, entitled to participate
in the management thereof and, upon the transfer of the entire interest of such
Grantor, such Grantor ceases to be a member or partner, as the case may be.

          SECTION 3.6 ACCOUNTS. No amount payable to such Grantor under or in
connection with any Account is evidenced by any Instrument or Chattel Paper
which has not been

                                       12

<PAGE>   16

delivered to the Collateral Agent, properly endorsed for transfer, to the extent
delivery is required by Section 4.4.

          SECTION 3.7 NO OTHER NAMES. Except as set forth on Schedule 1, such
Grantor has no trade names, fictitious names or other names except its legal
name, and does not operate in any jurisdiction under, and has not had or
operated in any jurisdiction within the five-year period preceding the date
hereof under, any trade name, fictitious name or other name other than its legal
name.

          SECTION 3.8 INTELLECTUAL PROPERTY.

          (a) Schedule 5 lists all Material Intellectual Property of such
Grantor on the date hereof, separately identifying that owned by such Grantor
and that licensed to such Grantor. The Material Intellectual Property set forth
on Schedule 5 for such Grantor constitutes all of the intellectual property
rights necessary to conduct its business.

          (b) On the date hereof, all Material Intellectual Property owned by
such Grantor which is registered is valid, subsisting, unexpired and
enforceable, has not been adjudged invalid and has not been abandoned and the
use thereof in the business of such Grantor does not infringe the intellectual
property rights of any other Person.

          (c) Except as set forth in Schedule 5, on the date hereof, none of the
Material Intellectual Property owned by such Grantor is the subject of any
licensing or franchise agreement pursuant to which such Grantor is the licensor
or franchisor.

          (d) No holding, decision or judgment has been rendered by any
Governmental Authority which would limit, cancel or question the validity of, or
such Grantor's rights in, any Material Intellectual Property.

          (e) No action or proceeding seeking to limit, cancel or question the
validity of any Material Intellectual Property owned by such Grantor or such
Grantor's ownership interest therein is on the date hereof pending or, to the
knowledge of such Grantor, threatened. There are no claims, judgments or
settlements to be paid by such Grantor relating to the Material Intellectual
Property.

          SECTION 3.9 DEPOSIT ACCOUNTS; CONTROL ACCOUNTS. The only deposit
accounts or Securities Accounts maintained by any Grantor on the date hereof are
those listed on Schedule 6, which sets forth such information separately for
each Grantor.

          ARTICLE IV. COVENANTS

          As long as any of the Obligations or the Commitments remain
outstanding, unless the Requisite Lenders otherwise consent in writing, each
Grantor agrees with the Collateral Agent that:

          SECTION 4.1 GENERALLY. Such Grantor shall (a) except for the security
interest created by this Agreement, not create or suffer to exist any Lien upon
or with respect to any of the Collateral, except Liens permitted under Section
6.3 of the Credit Agreement; (b) not use or permit any Collateral to be used
unlawfully or in violation of any provision of this Agreement, any other Loan
Document, any of the Mexican Facility Documents, any Requirement

                                       13

<PAGE>   17

of Law or any policy of insurance covering the Collateral; (c) not sell,
transfer or assign (by operation of law or otherwise) any Collateral except as
permitted under the Credit Agreement and the Mexican Facility Documents; (d) not
enter into any agreement or undertaking restricting the right or ability of such
Grantor or the Collateral Agent to sell, assign or transfer any of the
Collateral if such restriction would have a Material Adverse Effect; and (e)
promptly notify the Collateral Agent of its entry into any agreement or
assumption of undertaking that restricts the ability to sell, assign or transfer
any of the Collateral regardless of whether or not it has a Material Adverse
Effect.

          SECTION 4.2 MAINTENANCE OF PERFECTED SECURITY INTEREST; FURTHER
DOCUMENTATION.

          (a) Such Grantor will maintain the security interest created by this
Agreement as a perfected security interest having at least the priority
described in Section 3.2 and shall defend such security interest against the
claims and demands of all Persons.

          (b) Such Grantor will furnish to the Collateral Agent from time to
time statements and schedules further identifying and describing the Collateral
and such other reports in connection with the Collateral as the Collateral Agent
may reasonably request, all in reasonable detail.

          (c) At any time and from time to time, upon the written request of the
Collateral Agent, and at the sole expense of such Grantor, such Grantor will
promptly and duly execute and deliver, and have recorded, such further
instruments and documents and take such further action as the Collateral Agent
may reasonably request for the purpose of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted,
including the filing of any financing or continuation statement under the UCC
(or other similar laws) in effect in any jurisdiction with respect to the
security interest created hereby and the execution and delivery of Blocked
Account Letters and Control Account Letters.

          SECTION 4.3 CHANGES IN LOCATIONS, NAME, ETC.

          (a) Except upon 15 days' prior written notice to the Collateral Agent
and delivery to the Collateral Agent of (i) all additional executed financing
statements and other documents reasonably requested by the Collateral Agent to
maintain the validity, perfection and priority of the security interests
provided for herein and (ii) if applicable, a written supplement to Schedule 4
showing any additional location at which Inventory or Equipment shall be kept,
such Grantor will not:

          (i) permit any of the Inventory or Equipment to be kept at a location
     other than those listed on Schedule 4;

          (ii) change its place of incorporation or the location of its chief
     executive office or sole place of business from that referred to in Section
     3.3; or

          (iii) change its name, identity or corporate structure to such an
     extent that any financing statement filed by the Collateral Agent in
     connection with this Agreement would become misleading.

                                       14

<PAGE>   18

          (b) Such Grantor will keep and maintain at its own cost and expense
satisfactory and complete records of the Collateral, including a record of all
payments received and all credits granted with respect to the Collateral and all
other dealings with the Collateral. If requested by the Collateral Agent, the
security interest of the Collateral Agent shall be noted on the certificate of
title of each Vehicle.

          SECTION 4.4 PLEDGED COLLATERAL.

          (a) Such Grantor will grant to the Collateral Agent for the benefit of
the Secured Parties a lien on and security interest in, all of its right, title
and interest in any Additional Pledge Collateral pursuant to the provisions set
forth in Section 2.2 and will (i) deliver to the Collateral Agent, all
certificates or Instruments representing or evidencing any Additional Pledged
Collateral, whether now arising or hereafter acquired, in suitable form for
transfer by delivery or, as applicable, accompanied by such Grantor's
endorsement, where necessary, or duly executed instruments of transfer or
assignment in blank, all in form and substance satisfactory to the Collateral
Agent, together with a Pledge Amendment, duly executed by the Grantor, in
substantially the form of Annex 3 (a "Pledge Amendment") or in such other form
acceptable to the Collateral Agent, in respect of such Additional Pledged
Collateral and authorizes the Collateral Agent to attach each Pledge Amendment
to this Agreement and (ii) maintain all other Pledged Collateral constituting
Investment Property in a Control Account. The Collateral Agent shall have the
right, at any time in its discretion and after an Event of Default without prior
notice to the Grantor, to transfer to or to register in its name or in the name
of its nominees any or all of the Pledged Collateral. The Collateral Agent shall
have the right at any time to exchange certificates or instruments representing
or evidencing any of the Pledged Collateral for certificates or instruments of
smaller or larger denominations.

          (b) Except as provided in Article V, such Grantor shall be entitled to
receive all cash dividends paid in respect of the Pledged Collateral (other than
liquidating or distributing dividends) with respect to the Pledged Collateral.
Any sums paid upon or in respect of any of the Pledged Collateral upon the
liquidation or dissolution of any issuer of any of the Pledged Collateral, any
distribution of capital made on or in respect of any of the Pledged Collateral
or any property distributed upon or with respect to any of the Pledged
Collateral pursuant to the recapitalization or reclassification of the capital
of any issuer of Pledged Collateral or pursuant to the reorganization thereof
shall, unless otherwise subject to a perfected security interest in favor of the
Collateral Agent, be delivered to the Collateral Agent to be held by it
hereunder as additional collateral security for the Secured Obligations. If any
sums of money or property so paid or distributed pursuant to the immediately
preceding sentence in respect of any of the Pledged Collateral shall be received
by such Grantor, such Grantor shall, until such money or property is paid or
delivered to the Collateral Agent, hold such money or property in trust for the
Collateral Agent, segregated from other funds of such Grantor, as additional
security for the Secured Obligations.

          (c) Except as provided in Article V, such Grantor will be entitled to
exercise all voting, consent and corporate rights with respect to the Pledged
Collateral; provided, however, that no vote shall be cast, consent given or
right exercised or other action taken by such Grantor which would be
inconsistent with or result in any violation of any provision of the Credit
Agreement, this Agreement, any other Loan Document or any of the Mexican
Facility Documents or, without prior notice to the Collateral Agent, to enable
or take any other action to permit any issuer of Pledged Collateral to issue any
stock or other equity securities of any nature or to issue

                                       15

<PAGE>   19

any other securities convertible into or granting the right to purchase or
exchange for any stock or other equity securities of any nature of any issuer of
Pledged Collateral.

          (d) Such Grantor shall not grant Control over any Investment Property
to any Person other than the Collateral Agent.

          (e) In the case of each Grantor which is an issuer of Pledged
Collateral, such Grantor agrees to be bound by the terms of this Agreement
relating to the Pledged Collateral issued by it and will comply with such terms
insofar as such terms are applicable to it. In the case of each Grantor which is
a partner in a Partnership, such Grantor hereby consents to the extent required
by the applicable Partnership Agreement to the pledge by each other Grantor,
pursuant to the terms hereof, of the Pledged Partnership Interests in such
Partnership and to the transfer of such Pledged Partnership Interests to the
Collateral Agent or its nominee and to the substitution of the Collateral Agent
or its nominee as a substituted partner in such Partnership with all the rights,
powers and duties of a general partner or a limited partner, as the case may be.
In the case of each Grantor which is a member of an LLC, such Grantor hereby
consents to the extent required by the applicable LLC Agreement to the pledge by
each other Grantor, pursuant to the terms hereof, of the Pledged LLC Interests
in such LLC and to the transfer of such Pledged LLC Interests to the Collateral
Agent or its nominee and to the substitution of the Collateral Agent or its
nominee as a substituted member of the LLC with all the rights, powers and
duties of a member of the LLC in question.

          (f) Such Grantor will not agree to any provision in, or amendment of,
an LLC Agreement or Partnership Agreement that adversely affects the perfection
of the security interest of the Collateral Agent in the Pledged Partnership
Interests or Pledged LLC Interests pledged by such Grantor hereunder, including
electing to treat the membership interest or partnership interest of such
Grantor as a security under Section 8-103 of the UCC.

          SECTION 4.5 CONTROL ACCOUNTS; BLOCKED ACCOUNTS.

          (a) Such Grantor will (i) deposit in a Blocked Account all cash and
all Proceeds received by such Grantor, (ii) not establish or maintain any
Securities Account that is not a Control Account and (iii) not establish or
maintain any account with any financial or other institution in which Proceeds
are deposited other than with a Blocked Account Bank, a Lender or an Affiliate
of a Lender; provided, however, that any Grantor may (i) maintain payroll,
withholding tax and other fiduciary accounts and (ii) maintain other accounts so
long as the aggregate balance in all such accounts does not exceed $0.00.

          (b) Such Grantor shall instruct each Account Debtor or other Person
obligated to make a payment to such Grantor to make payment, or to continue to
make payment, as the case may be, to a Blocked Account and will deposit in a
Blocked Account all Proceeds received by such Grantor from any other Person
immediately upon receipt.

          (c) In the event (i) such Grantor or any Approved Securities
Intermediary or Blocked Account Bank shall, after the date hereof, terminate an
agreement with respect to the maintenance of a Control Account or Blocked
Account for any reason, (ii) the Collateral Agent shall demand such termination
as a result of the failure of an Approved Securities Intermediary or Blocked
Account Bank to comply with the terms of the applicable Control Account Letter
or Blocked Account Letter, or (iii) the Collateral Agent determines in its sole
discretion that the financial condition of an Approved Securities Intermediary
or Blocked Account Bank, as the case

                                       16

<PAGE>   20

may be, has materially deteriorated, such Grantor agrees to notify all of its
obligors that were making payments to such terminated Control Account or Blocked
Account, as the case may be, to make all future payments to another Control
Account or Blocked Account, as the case may be.

          SECTION 4.6 ACCOUNTS.

          (a) Such Grantor will not, other than in the ordinary course of
business consistent with its past practice, (i) grant any extension of the time
of payment of any Account, (ii) compromise or settle any Account for less than
the full amount thereof, (iii) release, wholly or partially, any Person liable
for the payment of any Account, (iv) allow any credit or discount on any
Account, or (v) amend, supplement or modify any Account in any manner that could
adversely affect the value thereof.

          (b) The Collateral Agent shall have the right to make test
verifications of the Accounts in any commercially reasonable manner and through
any medium that it reasonably considers advisable, and such Grantor shall
furnish all such assistance and information as the Collateral Agent may
reasonably require in connection therewith. At any time and from time to time,
upon the Collateral Agent's request and at the expense of the relevant Grantor,
such Grantor shall cause independent public accountants or others satisfactory
to the Collateral Agent to furnish to the Collateral Agent reports showing
reconciliations, aging and test verifications of, and trial balances for, the
Accounts; provided, however, that unless a Default or Event of Default shall be
continuing, the Collateral Agent shall request no more than four such reports
during any calendar year.

          SECTION 4.7 DELIVERY OF INSTRUMENTS AND CHATTEL PAPER. If any amount
in excess of $100,000 payable under or in connection with any of the Collateral
owned by such Grantor shall be or become evidenced by an Instrument or Chattel
Paper, such Grantor shall immediately deliver such Instrument or Chattel Paper
to the Collateral Agent, duly indorsed in a manner satisfactory to the
Collateral Agent, or, if consented to by the Collateral Agent, shall mark all
such Instruments and Chattel Paper with the following legend: "This writing and
the obligations evidenced or secured hereby are subject to the security interest
of Citicorp USA, Inc., as Collateral Agent".

          SECTION 4.8 INTELLECTUAL PROPERTY.

          (a) Such Grantor (either itself or through licensees) will (i)
continue to use each Trademark that is Material Intellectual Property in order
to maintain such Trademark in full force and effect with respect to each class
of goods for which such Trademark is currently used, free from any claim of
abandonment for non-use, (ii) maintain as in the past the quality of products
and services offered under such Trademark, (iii) use such Trademark with the
appropriate notice of registration and all other notices and legends required by
applicable Requirements of Law, (iv) not adopt or use any mark which is
confusingly similar or a colorable imitation of such Trademark unless the
Collateral Agent shall obtain a perfected security interest in such mark
pursuant to this Agreement and (v) not (and not permit any licensee or
sublicensee thereof to) do any act or knowingly omit to do any act whereby such
Trademark may become invalidated or impaired in any way.

          (b) Such Grantor (either itself or through licensees) will not do any
act, or omit to do any act, whereby any Patent which is Material Intellectual
Property may become forfeited, abandoned or dedicated to the public.

                                       17
<PAGE>   21

          (c) Such Grantor (either itself or through licensees) (i) will not
(and will not permit any licensee or sublicensee thereof to) do any act or omit
to do any act whereby any portion of the Copyrights which is Material
Intellectual Property may become invalidated or otherwise impaired and (ii) will
not (either itself or through licensees) do any act whereby any portion of the
Copyrights which is Material Intellectual Property may fall into the public
domain.

          (d) Such Grantor (either itself or through licensees) will not do any
act, or omit to do any act, whereby any trade secret which is Material
Intellectual Property may become publicly available or otherwise unprotectable.

          (e) Such Grantor (either itself or through licensees) will not do any
act that knowingly uses any Material Intellectual Property to infringe the
intellectual property rights of any other Person.

          (f) Such Grantor will notify the Collateral Agent immediately if it
knows, or has reason to know, that any application or registration relating to
any Material Intellectual Property may become forfeited, abandoned or dedicated
to the public, or of any adverse determination or development (including the
institution of, or any such determination or development in, any proceeding in
the United States Patent and Trademark Office, the United States Copyright
Office or any court or tribunal in any country) regarding such Grantor's
ownership of, right to use, interest in, or the validity of, any Material
Intellectual Property or such Grantor's right to register the same or to own and
maintain the same.

          (g) Whenever such Grantor, either by itself or through any agent,
licensee or designee, shall file an application for the registration of any
Intellectual Property with the United States Patent and Trademark Office, the
United States Copyright Office or any similar office or agency within or outside
the United States, such Grantor shall report such filing to the Collateral Agent
within five Business Days after the last day of the fiscal quarter in which such
filing occurs. Upon request of the Collateral Agent, such Grantor shall execute
and deliver, and have recorded, any and all agreements, instruments, documents,
and papers as the Collateral Agent may request to evidence the Collateral
Agent's security interest in any Copyright, Patent or Trademark and the goodwill
and general intangibles of such Grantor relating thereto or represented thereby.

          (h) Such Grantor will take all reasonable actions necessary or
requested by the Collateral Agent, including in any proceeding before the United
States Patent and Trademark Office, the United States Copyright Office or any
similar office or agency, to maintain and pursue each application (and to obtain
the relevant registration) and to maintain each registration of any Copyright,
Trademark or Patent that is Material Intellectual Property, including filing of
applications for renewal, affidavits of use, affidavits of incontestability and
opposition and interference and cancellation proceedings.

          (i) In the event that any Material Intellectual Property is infringed
upon or misappropriated or diluted by a third party, such Grantor shall notify
the Collateral Agent promptly after such Grantor learns thereof. Such Grantor
shall take appropriate action in response to such infringement, misappropriation
of dilution, including promptly bringing suit for infringement, misappropriation
or dilution and to recover any and all damages for such infringement,
misappropriation of dilution, and shall take such other actions may be
appropriate in its reasonable judgment under the circumstances to protect such
Material Intellectual Property.

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<PAGE>   22

          (j) Unless otherwise agreed to by the Collateral Agent, such Grantor
will execute and deliver to the Collateral Agent for filing in (i) the United
States Copyright Office a short-form copyright security agreement in the form
attached hereto as Annex 5, (ii) in the United States Patent and Trademark
Office a short-form patent security agreement in the form attached hereto as
Annex 6 and (iii) the United States Patent and Trademark Office a short-form
trademark security agreement in form attached hereto as Annex 7.

          SECTION 4.9 VEHICLES. Upon the request of the Collateral Agent, within
30 days after the date of such request and, with respect to any Vehicles
acquired by such Grantor subsequent to the date of any such request, within 30
days after the date of acquisition thereof, such Grantor shall file all
applications for certificates of title/ownership indicating the Collateral
Agent's first priority security interest in the Vehicle covered by such
certificate, and any other necessary documentation, in each office in each
jurisdiction which the Collateral Agent shall deem advisable to perfect its
security interests in the Vehicles.

          SECTION 4.10 PAYMENT OF OBLIGATIONS. Such Grantor will pay and
discharge or otherwise satisfy at or before maturity or before they become
delinquent, as the case may be, all taxes, assessments and governmental charges
or levies imposed upon the Collateral or in respect of income or profits
therefrom, as well as all claims of any kind (including claims for labor,
materials and supplies) against or with respect to the Collateral, except that
no such charge need be paid if the amount or validity thereof is currently being
contested in good faith by appropriate proceedings, reserves in conformity with
GAAP with respect thereto have been provided on the books of such Grantor.

          ARTICLE V. REMEDIAL PROVISIONS

          SECTION 5.1 CODE AND OTHER REMEDIES. During the continuance of an
Event of Default, the Collateral Agent may exercise, in addition to all other
rights and remedies granted to them in this Agreement and in any other
instrument or agreement securing, evidencing or relating to the Secured
Obligations, all rights and remedies of a secured party under the UCC or any
other applicable law. Without limiting the generality of the foregoing, the
Collateral Agent, without demand of performance or other demand, presentment,
protest, advertisement or notice of any kind (except any notice required by law
referred to below) to or upon any Grantor or any other Person (all and each of
which demands, defenses, advertisements and notices are hereby waived), may in
such circumstances forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
option or options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker's
board or office of the Collateral Agent or any Lender or elsewhere upon such
terms and conditions as it may deem advisable and at such prices as it may deem
best, for cash or on credit or for future delivery without assumption of any
credit risk. The Collateral Agent shall have the right upon any such public sale
or sales, and, to the extent permitted by law, upon any such private sale or
sales, to purchase the whole or any part of the Collateral so sold, free of any
right or equity of redemption in any Grantor, which right or equity is hereby
waived and released. Each Grantor further agrees, at the Collateral Agent's
request, to assemble the Collateral and make it available to the Collateral
Agent at places which the Collateral Agent shall reasonably select, whether at
such Grantor's premises or elsewhere. The Collateral Agent shall apply the net
proceeds of any action taken by it pursuant to this Section 5.1, after deducting
all reasonable costs and expenses of every kind incurred in connection therewith
or incidental to the care or safekeeping of any of the Collateral or in any way
relating to the Collateral or the rights of

                                       19
<PAGE>   23

the Collateral Agent and any other Secured Party hereunder, including reasonable
attorneys' fees and disbursements, to the payment in whole or in part of the
Secured Obligations, in such order as the Mexican Intercreditor Agreement shall
prescribe, and only after such application and after the payment by the
Collateral Agent of any other amount required by any provision of law, including
Section 9-504(1)(c) of the UCC, need the Collateral Agent account for the
surplus, if any, to any Grantor. If any notice of a proposed sale or other
disposition of Collateral shall be required by law, such notice shall be deemed
reasonable and proper if given at least 10 days before such sale or other
disposition.

          SECTION 5.2 ACCOUNTS AND PAYMENTS IN RESPECT OF GENERAL INTANGIBLES.

          (a) If required by the Collateral Agent at any time during the
continuance of an Event of Default, any payments of Accounts or payments in
respect of General Intangibles, when collected by any Grantor, shall be
forthwith (and, in any event, within two Business Days) deposited by such
Grantor in the exact form received, duly endorsed by such Grantor to the
Collateral Agent if required, in a Cash Collateral Account maintained under the
sole dominion and control of the Collateral Agent, subject to withdrawal by the
Collateral Agent as provided in Section 5.4. Until so turned over, such payments
shall be held by such Grantor in trust for the Collateral Agent, segregated from
other funds of such Grantor. Each such deposit of Proceeds of Accounts and
payments in respect of General Intangibles shall be accompanied by a report
identifying in reasonable detail the nature and source of the payments included
in the deposit.

          (b) At the Collateral Agent's request, during the continuance of an
Event of Default, each Grantor shall deliver to the Collateral Agent all
original and other documents evidencing, and relating to, the agreements and
transactions which gave rise to the Accounts or payments in respect of General
Intangibles, including all original orders, invoices and shipping receipts.

          (c) The Collateral Agent may, without notice, at any time during the
continuance of an Event of Default, limit or terminate the authority of a
Grantor to collect its Accounts or amounts due under General Intangibles or any
thereof.

          (d) The Collateral Agent in its own name or in the name of others may
at any time during the continuance of an Event of Default communicate with
Account Debtors to verify with them to the Collateral Agent's satisfaction the
existence, amount and terms of any Accounts or amounts due under any General
Intangibles.

          (e) Upon the request of the Collateral Agent at any time during the
continuance of an Event of Default, each Grantor shall notify Account Debtors
that the Accounts or payments in respect of General Intangibles have been
collaterally assigned to the Collateral Agent and that payments in respect
thereof shall be made directly to the Collateral Agent. In addition, the
Collateral Agent may at any time during the continuance of an Event of Default
so notify Account Debtors.

          (f) Anything herein to the contrary notwithstanding, each Grantor
shall remain liable under each of the Accounts and payments in respect of
General Intangibles to observe and perform all the conditions and obligations to
be observed and performed by it thereunder, all in accordance with the terms of
any agreement giving rise thereto. Neither the Collateral Agent nor any other
Secured Party shall have any obligation or liability under any agreement giving
rise to an Account or a payment in respect of a General Intangible by reason of
or arising out of this

                                       20

<PAGE>   24

Agreement or the receipt by Collateral Agent nor any other Secured Party of any
payment relating thereto, nor shall Collateral Agent nor any other Secured Party
be obligated in any manner to perform any of the obligations of any Grantor
under or pursuant to any agreement giving rise to an Account or a payment in
respect of a General Intangible, to make any payment, to make any inquiry as to
the nature or the sufficiency of any payment received by it or as to the
sufficiency of any performance by any party thereunder, to present or file any
claim, to take any action to enforce any performance or to collect the payment
of any amounts which may have been assigned to it or to which it may be entitled
at any time or times.

          SECTION 5.3 PLEDGED COLLATERAL.

          (a) During the continuance of an Event of Default, upon notice by the
Collateral Agent to the relevant Grantor or Grantors, (i) the Collateral Agent
shall have the right to receive any and all cash dividends, payments or other
Proceeds paid in respect of the Pledged Collateral and make application thereof
to the Secured Obligations in the order set forth in the Mexican Intercreditor
Agreement, and (ii) the Collateral Agent or its nominee may exercise (A) all
voting, consent, corporate and other rights pertaining to the Pledged Collateral
at any meeting of shareholders, partners or members, as the case may be, of the
relevant issuer or issuers of Pledged Collateral or otherwise and (B) any and
all rights of conversion, exchange and subscription and any other rights,
privileges or options pertaining to the Pledged Collateral as if it were the
absolute owner thereof (including the right to exchange at its discretion any
and all of the Pledged Collateral upon the merger, consolidation,
reorganization, recapitalization or other fundamental change in the corporate
structure of any issuer of Pledged Securities, the right to deposit and deliver
any and all of the Pledged Collateral with any committee, depositary, transfer
agent, registrar or other designated agency upon such terms and conditions as
the Collateral Agent may determine), all without liability except to account for
property actually received by it, but the Collateral Agent shall have no duty to
any Grantor to exercise any such right, privilege or option and shall not be
responsible for any failure to do so or delay in so doing.

          (b) In order to permit the Collateral Agent to exercise the voting and
other consensual rights which it may be entitled to exercise pursuant hereto and
to receive all dividends and other distributions which it may be entitled to
receive hereunder, (i) each Grantor shall promptly execute and deliver (or cause
to be executed and delivered) to the Collateral Agent all such proxies, dividend
payment orders and other instruments as the Collateral Agent may from time to
time reasonably request and (ii) without limiting the effect of clause (i)
above, such Grantor hereby grants to the Collateral Agent an irrevocable proxy
to vote all or any part of the Pledged Collateral and to exercise all other
rights, powers, privileges and remedies to which a holder of the Pledged
Collateral would be entitled (including giving or withholding written consents
of shareholders, partners or members, as the case may be, calling special
meetings of shareholders, partners or members, as the case may be, and voting at
such meetings), which proxy shall be effective, automatically and without the
necessity of any action (including any transfer of any Pledged Collateral on the
record books of the issuer thereof) by any other person (including the issuer of
such Pledged Collateral or any officer or agent thereof) during the continuance
of an Event of Default and which proxy shall terminate upon the earlier of the
payment in full of the Secured Obligations or the cure of the Event of Default.

          (c) Each Grantor hereby expressly authorizes and instructs each issuer
of any Pledged Collateral pledged hereunder by such Grantor to (i) comply with
any instruction received by it from the Collateral Agent in writing that (A)
states that an Event of Default has occurred and is continuing and (B) is
otherwise in accordance with the terms of this Agreement, without any

                                       21

<PAGE>   25

other or further instructions from such Grantor, and each Grantor agrees that
such issuer shall be fully protected in so complying and (ii) unless otherwise
expressly permitted hereby, pay any dividends or other payments with respect to
the Pledged Collateral directly to the Collateral Agent.

          SECTION 5.4 PROCEEDS TO BE TURNED OVER TO COLLATERAL AGENT. All
Proceeds received by the Collateral Agent hereunder shall be held by the
Collateral Agent in a Cash Collateral Account maintained under its sole dominion
and control. All Proceeds while held by the Collateral Agent in a Cash
Collateral Account (or by such Grantor in trust for the Collateral Agent) shall
continue to be held as collateral security for the Secured Obligations and shall
not constitute payment thereof until applied as provided in the Mexican
Intercreditor Agreement. During the continuance of an Event of Default, the
Collateral Agent shall have the right to send a Blockage Notice to each Blocked
Account Bank.

          SECTION 5.5 REGISTRATION RIGHTS.

          (a) If the Collateral Agent shall determine to exercise its right to
sell any or all of the Pledged Collateral pursuant to Section 5.1, and if in the
opinion of the Collateral Agent it is necessary or advisable to have the Pledged
Collateral, or any portion thereof to be registered under the provisions of the
Securities Act, the relevant Grantor will cause the issuer thereof to (i)
execute and deliver, and cause the directors and officers of such issuer to
execute and deliver, all such instruments and documents, and do or cause to be
done all such other acts as may be, in the opinion of the Collateral Agent,
necessary or advisable to register the Pledged Collateral, or that portion
thereof to be sold, under the provisions of the Securities Act, (ii) use its
best efforts to cause the registration statement relating thereto to become
effective and to remain effective for a period of one year from the date of the
first public offering of the Pledged Collateral, or that portion thereof to be
sold and (iii) make all amendments thereto and/or to the related prospectus
which, in the opinion of the Collateral Agent, are necessary or advisable, all
in conformity with the requirements of the Securities Act and the rules and
regulations of the Securities and Exchange Commission applicable thereto. Each
Grantor agrees to cause such issuer to comply with the provisions of the
securities or "Blue Sky" laws of any and all jurisdictions which the Collateral
Agent shall designate and to make available to its security holders, as soon as
practicable, an earnings statement (which need not be audited) which will
satisfy the provisions of Section 11(a) of the Securities Act.

          (b) Each Grantor recognizes that the Collateral Agent may be unable to
effect a public sale of any or all the Pledged Collateral by reason of certain
prohibitions contained in the Securities Act and applicable state securities
laws or otherwise or may determine that a public sale is impracticable or not
commercially reasonable and, accordingly, may resort to one or more private
sales thereof to a restricted group of purchasers which will be obliged to
agree, among other things, to acquire such securities for their own account for
investment and not with a view to the distribution or resale thereof. Each
Grantor acknowledges and agrees that any such private sale may result in prices
and other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be
deemed to have been made in a commercially reasonable manner. The Collateral
Agent shall be under no obligation to delay a sale of any of the Pledged
Collateral for the period of time necessary to permit the issuer thereof to
register such securities for public sale under the Securities Act, or under
applicable state securities laws, even if such issuer would agree to do so.

                                       22

<PAGE>   26

          (c) Each Grantor agrees to use its best efforts to do or cause to be
done all such other acts as may be necessary to make such sale or sales of all
or any portion of the Pledged Collateral pursuant to this Section 5.5 valid and
binding and in compliance with any and all other applicable Requirements of Law.
Each Grantor further agrees that a breach of any of the covenants contained in
this Section 5.5 will cause irreparable injury to the Collateral Agent and other
Secured Parties, that the Collateral Agent and the other Secured Parties have no
adequate remedy at law in respect of such breach and, as a consequence, that
each and every covenant contained in this Section 5.5 shall be specifically
enforceable against such Grantor, and such Grantor hereby waives and agrees not
to assert any defenses against an action for specific performance of such
covenants except for a defense that no Event of Default has occurred under the
Credit Agreement.

          SECTION 5.6 WAIVER; DEFICIENCY. Each Grantor waives and agrees not to
assert any rights or privileges which it may acquire under Section 9-112 of the
UCC other than (a) with respect to such Grantor's entitlement to receive from
the Collateral Agent surplus in excess of the Secured Obligations under Section
9-502(2) and 9-504(1)and (b) under Section 9-112 (c) and (d). Each Grantor shall
remain liable for any deficiency if the proceeds of any sale or other
disposition of the Collateral are insufficient to pay such Grantor's Secured
Obligations and the fees and disbursements of any attorneys employed by the
Collateral Agent or any other Secured Party to collect such deficiency.

          ARTICLE VI. THE COLLATERAL AGENT

          SECTION 6.1 COLLATERAL AGENT'S APPOINTMENT AS ATTORNEY-IN-FACT.

          (a) Each Grantor hereby irrevocably constitutes and appoints the
Collateral Agent and any officer or agent thereof, with full power of
substitution, as its true and lawful attorney-in-fact with full irrevocable
power and authority in the place and stead of such Grantor and in the name of
such Grantor or in its own name, for the purpose of carrying out the terms of
this Agreement, to take any and all appropriate action and to execute any and
all documents and instruments which may be necessary or desirable to accomplish
the purposes of this Agreement, and, without limiting the generality of the
foregoing, each Grantor hereby gives the Collateral Agent the power and right,
on behalf of such Grantor, without notice to or assent by such Grantor, to do
any or all of the following:

          (i) in the name of such Grantor or its own name, or otherwise, take
     possession of and indorse and collect any checks, drafts, notes,
     acceptances or other instruments for the payment of moneys due under any
     Account or General Intangible or with respect to any other Collateral and
     file any claim or take any other action or proceeding in any court of law
     or equity or otherwise deemed appropriate by the Collateral Agent for the
     purpose of collecting any and all such moneys due under any Account or
     General Intangible or with respect to any other Collateral whenever
     payable;

          (ii) in the case of any Intellectual Property, execute and deliver,
     and have recorded, any and all agreements, instruments, documents and
     papers as the Collateral Agent may request to evidence the Collateral
     Agent's security interest in such Intellectual Property and the goodwill
     and General Intangibles of such Grantor relating thereto or represented
     thereby;

                                       23

<PAGE>   27

          (iii) pay or discharge taxes and Liens levied or placed on or
     threatened against the Collateral, effect any repairs or any insurance
     called for by the terms of this Agreement and pay all or any part of the
     premiums therefor and the costs thereof;

          (iv) execute, in connection with any sale provided for in Section 5.1
     or 5.5, any endorsements, assignments or other instruments of conveyance or
     transfer with respect to the Collateral; and

          (v) (A) direct any party liable for any payment under any of the
     Collateral to make payment of any and all moneys due or to become due
     thereunder directly to the Collateral Agent or as the Collateral Agent
     shall direct; (B) ask or demand for, collect, and receive payment of and
     receipt for, any and all moneys, claims and other amounts due or to become
     due at any time in respect of or arising out of any Collateral; (C) sign
     and indorse any invoices, freight or express bills, bills of lading,
     storage or warehouse receipts, drafts against debtors, assignments,
     verifications, notices and other documents in connection with any of the
     Collateral; (D) commence and prosecute any suits, actions or proceedings at
     law or in equity in any court of competent jurisdiction to collect the
     Collateral or any portion thereof and to enforce any other right in respect
     of any Collateral; (E) defend any suit, action or proceeding brought
     against such Grantor with respect to any Collateral; (F) settle, compromise
     or adjust any such suit, action or proceeding and, in connection therewith,
     give such discharges or releases as the Collateral Agent may deem
     appropriate; (G) assign any Copyright, Patent or Trademark (along with the
     goodwill of the business to which any such Trademark pertains), throughout
     the world for such term or terms, on such conditions, and in such manner,
     as the Collateral Agent shall in its sole discretion determine, including
     without limitation the execution and filing of any documents necessary to
     effectuate and/or record such assignment; and (H) generally, sell,
     transfer, pledge and make any agreement with respect to or otherwise deal
     with any of the Collateral as fully and completely as though the Collateral
     Agent were the absolute owner thereof for all purposes, and do, at the
     Collateral Agent's option and such Grantor's expense, at any time, or from
     time to time, all acts and things which the Collateral Agent deems
     necessary to protect, preserve or realize upon the Collateral and the
     Collateral Agent's and the other Secured Parties' security interests
     therein and to effect the intent of this Agreement, all as fully and
     effectively as such Grantor might do.

Anything in this Section 6.1(a) to the contrary notwithstanding, the Collateral
Agent agrees that it will not exercise any rights under the power of attorney
provided for in this Section 6.1(a) unless an Event of Default, which has not
been waived, shall be continuing.

          (b) If any Grantor fails to perform or comply with any of its
agreements contained herein, the Collateral Agent, at its option, but without
any obligation so to do, may perform or comply, or otherwise cause performance
or compliance, with such agreement.

          (c) The expenses of the Collateral Agent incurred in connection with
actions undertaken as provided in this Section 6.1, together with interest
thereon at a rate per annum equal to the rate per annum at which interest would
then be payable on past due Revolving Loans that are Base Rate Loans under the
Credit Agreement, from the date of payment by the Collateral Agent to the date
reimbursed by the relevant Grantor, shall be payable by such Grantor to the
Collateral Agent on demand.

                                       24

<PAGE>   28

          (d) Each Grantor hereby ratifies all that said attorneys shall
lawfully do or cause to be done by virtue hereof. All powers, authorizations and
agencies contained in this Agreement are coupled with an interest and are
irrevocable until this Agreement is terminated and the security interests
created hereby are released.

          SECTION 6.2 DUTY OF COLLATERAL AGENT. The Collateral Agent's sole duty
with respect to the custody, safekeeping and physical preservation of the
Collateral in its possession shall be to deal with it in the same manner as the
Collateral Agent deals with similar property for its own account. Neither the
Collateral Agent, any other Secured Party nor any of their respective officers,
directors, employees or agents shall be liable for failure to demand, collect or
realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof. The powers
conferred on the Collateral Agent hereunder are solely to protect the Collateral
Agent's interest in the Collateral and shall not impose any duty upon the
Collateral Agent or any other Secured Party to exercise any such powers. The
Collateral Agent and the other Secured Parties shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers,
and neither they nor any of their officers, directors, employees or agents shall
be responsible to any Grantor for any act or failure to act hereunder, except
for their own gross negligence or willful misconduct.

          SECTION 6.3 EXECUTION OF FINANCING STATEMENTS. Each Grantor authorizes
the Collateral Agent to file or record financing statements and other filing or
recording documents or instruments with respect to the Collateral without the
signature of such Grantor in such form and in such offices as the Collateral
Agent reasonably determines appropriate to perfect the security interests of the
Collateral Agent under this Agreement. A photographic or other reproduction of
this Agreement shall be sufficient as a financing statement or other filing or
recording document or instrument for filing or recording in any jurisdiction.

          SECTION 6.4 AUTHORITY OF COLLATERAL AGENT. Each Grantor acknowledges
that the rights and responsibilities of the Collateral Agent under this
Agreement with respect to any action taken by the Collateral Agent or the
exercise or non-exercise by the Collateral Agent of any option, voting right,
request, judgment or other right or remedy provided for herein or resulting or
arising out of this Agreement shall, as between the Collateral Agent and the
Secured Parties, be governed by the Credit Agreement and, as between the Mexican
Facility Tranche A Lenders, be governed by the Intercreditor Agreement and by
such other agreements with respect thereto as may exist from time to time among
them, but, as between the Collateral Agent and the Grantors, the Collateral
Agent shall be conclusively presumed to be acting as agent for the Collateral
Agent and the other Secured Parties with full and valid authority so to act or
refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

          ARTICLE VII. MISCELLANEOUS

          SECTION 7.1 AMENDMENTS IN WRITING. None of the terms or provisions of
this Agreement may be waived, amended, supplemented or otherwise modified except
in accordance with Section 11.1 of the Credit Agreement.

          SECTION 7.2 NOTICES. All notices, requests and demands to or upon the
Collateral Agent or any Grantor hereunder shall be effected in the manner
provided for in Section

                                       25

<PAGE>   29

9.8 of the Credit Agreement; provided, however, that any such notice, request or
demand to or upon any Grantor shall be addressed in case of the Borrower at the
Borrower's notice address set forth in such Section 9.8.

          SECTION 7.3 NO WAIVER BY COURSE OF CONDUCT; CUMULATIVE REMEDIES.
Neither the Collateral Agent nor any other Secured Party shall by any act
(except by a written instrument pursuant to Section 7.1), delay, indulgence,
omission or otherwise be deemed to have waived any right or remedy hereunder or
to have acquiesced in any Default or Event of Default. No failure to exercise,
nor any delay in exercising, on the part of the Collateral Agent or any other
Secured Party, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege
hereunder shall preclude any other or further exercise thereof or the exercise
of any other right, power or privilege. A waiver by the Collateral Agent or any
other Secured Party of any right or remedy hereunder on any one occasion shall
not be construed as a bar to any right or remedy which the Collateral Agent or
such other Secured Party would otherwise have on any future occasion. The rights
and remedies herein provided are cumulative, may be exercised singly or
concurrently and are not exclusive of any other rights or remedies provided by
law.

          SECTION 7.4 SUCCESSORS AND ASSIGNS. This Agreement shall be binding
upon the successors and assigns of each Grantor and shall inure to the benefit
of the Collateral Agent and each other Secured Party and their successors and
assigns; provided, however, that no Grantor may assign, transfer or delegate any
of its rights or obligations under this Agreement without the prior written
consent of the Collateral Agent.

          SECTION 7.5 COUNTERPARTS. This Agreement may be executed by one or
more of the parties to this Agreement on any number of separate counterparts
(including by telecopy), and all of said counterparts taken together shall be
deemed to constitute one and the same agreement.

          SECTION 7.6 SEVERABILITY. 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 hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          SECTION 7.7 SECTION HEADINGS. The Article and Section titles contained
in this Agreement are and shall be without substantive meaning or content of any
kind whatsoever and are not part of the agreement of the parties hereto.

          SECTION 7.8 ENTIRE AGREEMENT. This Agreement together with the other
Loan Documents represents the entire agreement of the parties and supersedes all
prior agreements and understandings relating to the subject matter hereof.

          SECTION 7.9 GOVERNING LAW. This agreement and the rights and
obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, the law of the state of New York.

          SECTION 7.10 ADDITIONAL GRANTORS. If, pursuant to Section 5.7(b) of
the Credit Agreement, the Borrower shall be required to cause any Subsidiary
that is not a Grantor to become a Grantor hereunder, such Subsidiary shall
execute and deliver to the Collateral Agent a

                                       26

<PAGE>   30

Joinder Agreement in the form of Annex 4 and shall thereafter for all purposes
be a party hereto and have the same rights, benefits and obligations as a
Grantor party hereto on the Effective Date.

          SECTION 7.11 RELEASE OF COLLATERAL.

          (a) As provided in the Mexican Intercreditor Agreement, the Collateral
shall be released from the Lien created hereby and this Agreement and all
obligations (other than those expressly stated to survive such termination) of
the Collateral Agent and each Grantor hereunder shall terminate, all without
delivery of any instrument or performance of any act by any party, and all
rights to the Collateral shall revert to the Grantors. At the request and sole
expense of any Grantor following any such termination, the Collateral Agent
shall deliver to such Grantor any Collateral of such Grantor held by the
Collateral Agent hereunder and execute and deliver to such Grantor such
documents as such Grantor shall reasonably request to evidence such termination.

          (b) If any of the Collateral shall be sold or disposed of by any
Grantor in a transaction permitted by the Credit Agreement, the Collateral so
sold or disposed of shall be released from the Lien created hereby to the extent
provided in the Mexican Intercreditor Agreement and, in connection therewith,
the Collateral Agent, at the request and sole expense of the Borrowers, shall
execute and deliver to the Borrowers all releases or other documents reasonably
necessary or desirable for the release of the Lien created hereby on such
Collateral. At the request and sole expense of the Borrowers, a Grantor shall be
released from its obligations hereunder in the event that all the capital stock
of such Grantor shall be so sold or disposed; provided, however, that the
Borrowers shall have delivered to the Collateral Agent, at least ten Business
Days prior to the date of the proposed release, a written request for release
identifying the relevant Grantor and the terms of the sale or other disposition
in reasonable detail, including the price thereof and any expenses in connection
therewith, together with a certification by the Borrowers stating that such
transaction is in compliance with the Credit Agreement and the other Loan
Documents.

          SECTION 7.12 REINSTATEMENT. Each Grantor further agrees that, if any
payment made by any Loan Party or other Person and applied to the Obligations or
any payment made by any Mexican Subsidiary or other Person and applied to the
Mexican Facility Tranche A Guaranty Obligations is at any time annulled,
avoided, set aside, rescinded, invalidated, declared to be fraudulent or
preferential or otherwise required to be refunded or repaid, or the proceeds of
Collateral are required to be returned by any Secured Party to such Loan Party
or such Mexican Subsidiary, its estate, trustee, receiver or any other party,
including any Grantor, under any bankruptcy law, state or federal law, common
law or equitable cause, then, to the extent of such payment or repayment, any
Lien or other Collateral securing such liability shall be and remain in full
force and effect, as fully as if such payment had never been made or, if prior
thereto the Lien granted hereby or other Collateral securing such liability
hereunder shall have been released or terminated by virtue of such cancellation
or surrender), such Lien or other Collateral shall be reinstated in full force
and effect, and such prior cancellation or surrender shall not diminish,
release, discharge, impair or otherwise affect any Lien or other Collateral
securing the obligations of any Grantor in respect of the amount of such
payment.

                                       27

<PAGE>   31

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

                                            OXFORD AUTOMOTIVE, INC.
                                            LOBDELL EMERY CORPORATION
                                            LEWIS EMERY CAPITAL CORPORATION
                                            LASERWELD INTERNATIONAL, L.L.C.
                                            PARALLEL GROUP INTERNATIONAL, INC.
                                            CONCEPT MANAGEMENT CORPORATION
                                            CREATIVE FABRICATION CORPORATION
                                            WINCHESTER FABRICATION CORPORATION
                                            OASP, INC.
                                            OASP II, INC.
                                            RPI HOLDINGS, INC.
                                            RPI, INC.
                                            PRUDENVILLE MANUFACTURING INC.
                                            OXFORD SUSPENSION, INC.
                                            HOWELL INDUSTRIES, INC.
                                            CE TECHNOLOGIES, INC.
                                            TOOL AND ENGINEERING COMPANY

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

ACCEPTED AND AGREED:

CITICORP USA, INC.,
  as Collateral Agent

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

<PAGE>   32

                                   ANNEX 1 TO
                          PLEDGE AND SECURITY AGREEMENT

                                                                          [Date]

[Blocked Account Bank]
[Address]

Ladies and Gentlemen:

          Reference is made to account no. [         ] maintained with you (the
"Bank") by [ ] (the "Company") into which funds are deposited from time to time
(the "Account"). The Company has entered into (a) a Pledged and Security
Agreement, dated as of July 31, 2000 (as the same may be amended, restated,
supplemented or otherwise modified from time to time, the "Pledge and Security
Agreement"), among the Company, certain affiliates of the Company, and Citicorp
USA, Inc., as agent for the Secured Parties referred to therein (in such
capacity the "Collateral Agent").

          Pursuant to the Pledge and Security Agreement and related documents,
the Company has granted to the Collateral Agent, for the benefit of the Secured
Parties, a security interest in certain property of the Company, including,
among other things, accounts, inventory, equipment, instruments, general
intangibles and all proceeds thereof (the "Collateral"). Payments with respect
to the Collateral are or hereafter may be made to the Account.

          The Company hereby transfers to the Collateral Agent exclusive
ownership and control of, and all of its right, title and interest in and to,
the Account and all funds and other property on deposit therein. By your
execution of this letter agreement, you acknowledge that the Collateral Agent
now has exclusive ownership and control of the Account, that all funds in the
Account shall be transferred to the Collateral Agent as provided herein, that
the Account is being maintained by you for the benefit of the Collateral Agent
and that all amounts and other property therein are held by you as custodian for
the Collateral Agent.

          Except as provided in paragraph (d) below, the Account shall not be
subject to deduction, set-off, banker's lien, counterclaim, defense, recoupment
or any other right in favor of any person or entity other than the Collateral
Agent. By your execution of this letter agreement you also acknowledge that, as
of the date hereof, you have received no notice of any other pledge or
assignment of the Account and you agree with the Collateral Agent as follows:

          (a) Notwithstanding anything to the contrary or any other agreement
     relating to the Account, the Account is and will be maintained for the
     benefit of the Collateral Agent, will be entitled "Citicorp USA, Inc.
     Oxford Automotive, Inc. Account" and will be subject to written
     instructions only from an authorized officer of the Collateral Agent.

          (b) Prior to the delivery to you of a written notice from the
     Collateral Agent in the form of Exhibit A hereto (a "Blockage Notice"), you
     are authorized to transfer to the Company, in same day funds, on each
     Business Day, the entire balance in the Account to the following account:

                    ABA Number:
                               ------------------------
                    [name and address of Company's bank]

                                      A1-1

<PAGE>   33

               Account Name:
                            --------------------------------
                                  Concentration Account
               Account Number:
                              ------------------------------
               Reference:
                         -----------------------------------
               Attn:
                    ----------------------------------------

               or to such other account as the Company may from time to time
          designate in writing.

          (c) From and after the delivery to you of a Blockage Notice, you will
     transfer (by wire transfer or other method of transfer mutually acceptable
     to you and the Collateral Agent) to the Agent, in same day funds, on each
     Business Day, the entire balance in the Account to the following account
     (the "Collateral Agent Concentration Account"):

               ABA Number:
                          ----------------------------------
               Citibank, N.A.
               399 Park Avenue
               6th Floor - Zone 4
               New York, New York 10043

               Account Name:
                            --------------------------------
                                  Concentration Account
               Account Number:
                              ------------------------------
               Reference:
                         -----------------------------------
               Attn:
                    ----------------------------------------

               or to such other account as the Collateral Agent may from time to
          time designate in writing.

          (d) All customary service charges and fees with respect to the Account
     shall be debited to the Account. In the event insufficient funds remain in
     the Account to cover such customary service charges and fees, the Company
     shall pay and indemnify you for the amounts of such customary service
     charges and fees.

          This letter agreement shall be binding upon and shall inure to the
benefit of you, the Company, the Collateral Agent, the Secured Parties referred
to in the Credit Agreement and the respective successors, transferees and
assigns of any of the foregoing. This letter agreement may not be modified
except upon the mutual consent of the Collateral Agent, the Company and you. You
may terminate the letter agreement only upon 30 days' prior written notice to
the Company and the Collateral Agent. The Collateral Agent may terminate this
letter agreement upon 10 days' prior written notice to you and the Company. Upon
such termination you shall close the Account and transfer all funds in the
Account to the Collateral Agent Concentration Account or as otherwise directed
by the Collateral Agent. After any such termination, you shall nonetheless
remain obligated promptly to transfer to the Collateral Agent Concentration
Account or as the Collateral Agent may otherwise direct all funds and other
property received in respect of the Account.

          This letter agreement may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed

                                      A1-2
<PAGE>   34

to be an original and all of which when taken together shall constitute one and
the same agreement. Delivery of an executed counterpart of a signature page to
this letter agreement by telecopier shall be effective as delivery of a manually
executed counterpart of this letter agreement.

          This letter agreement supersedes all prior agreements, oral or
written, with respect to the subject matter hereof and may not be amended,
modified or supplemented except by a writing signed by the Collateral Agent, the
Company and you.

          This letter agreement shall be governed by, and construed in
accordance with, the law of the state of New York.

          Upon acceptance of this letter agreement it will be the valid and
binding obligation of the Company, the Collateral Agent, and you, in accordance
with its terms.

                              Very truly yours,

                              [                             ].

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

                              CITICORP USA, INC, as Collateral Agent

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

Acknowledged and agreed to as of
the date first above written:

[                               ]

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

                                      A1-3

<PAGE>   35

                                    EXHIBIT A
                                       TO

                             BLOCKED ACCOUNT LETTER

                    FORM OF COLLATERAL AGENT BLOCKAGE NOTICE

[Blocked Account Bank]
[Address]

              Re: Account No.                     (the "Account")
                              -------------------

Ladies and Gentlemen:

          Reference is made to the Account and that certain Blocked Account
Letter dated          ,      among you, Citicorp USA, Inc., as Collateral Agent
(the "Collateral Agent"), and [               ] (the "Blocked Account Letter").
Capitalized terms used herein shall have the meanings given to them in the
Blocked Account Letter.

          The Collateral Agent hereby notifies you that, from and after the date
of this notice, you are hereby directed to transfer (by wire transfer or other
method of transfer mutually acceptable to you and the Collateral Agent) to the
Agent, in same day funds, on each Business Day, the entire balance in the
Account to the Collateral Agent Concentration Account specified in paragraph (h)
of the Blocked Account Letter or to such other account as the Collateral Agent
may from time to time designate in writing.

                                        Very truly yours,

                                        CITICORP USA, INC, as Collateral Agent

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

                                      A1-4

<PAGE>   36

                                   ANNEX 2 TO
                          PLEDGE AND SECURITY AGREEMENT

[Name and Address
of Approved Securities
Intermediary]

                                                                          [Date]

Ladies and Gentlemen:

          The undersigned                        (the "Pledgor") together with
certain of its affiliates are party to a Pledge and Security Agreement dated
August 1, 2000 in favor of Citicorp USA, Inc., as agent for the Secured Parties
referred to therein (the "Pledgee" and such agreement the "Pledge and Security
Agreement") pursuant to which a security interest is granted by the Pledgor in
all present and future Assets (hereinafter defined) in Account No.           of
the Pledgor (the "Pledge").

          In connection therewith, the Pledgor hereby instructs you (the
"Approved Securities Intermediary") to:

     1.   maintain the Account, as "           - Citicorp USA Control Account";

     2.   hold in the Account the assets, including all financial assets,
          securities, security entitlements and all other property and rights
          now or hereafter received in such Account (collectively the "Assets"),
          including without limitation those assets listed in Exhibit A attached
          hereto and made a part hereof;

     3.   provide to the Pledgee, with a duplicate copy to the Pledgor, a
          monthly statement of Assets and a confirmation statement of each
          transaction effected in the Account after such transaction is
          effected; and

     4.   honor only the instructions or entitlement orders in regard to or in
          connection with the Account given by an Authorized Officer of the
          Pledgee, except that until such time as the Pledgee gives a written
          notice to the Approved Securities Intermediary that the Pledgor's
          rights under this sentence have been terminated (on which notice the
          Approved Securities Intermediary may rely exclusively), the Pledgor
          acting through an Authorized Officer may (a) exercise any voting
          rights that it may have with respect to any of the Assets, (b) give
          instructions to enter into purchase or sale transactions in the
          Account and (c) withdraw and receive for its own use all regularly
          scheduled interest [and dividends] paid with respect to the Assets
          ("Permitted Withdrawals"); provided, however, that unless the Pledgee
          has consented to the specific transaction, the Pledgor shall not
          instruct the Approved Securities Intermediary to deliver and, except
          as may be required by law or by court order, the Approved Securities
          Intermediary shall not deliver, cash and/or securities, or proceeds
          from the sale of, or distributions on, such securities out of the
          Account to the Pledgor or to any other person or entity other than
          Permitted Withdrawals.

                                      A2-1

<PAGE>   37

          By its signature below, the Approved Securities Intermediary agrees to
comply with the entitlement orders and instructions of an Authorized Officer of
the Pledgee (including without limitation any instructions with respect to
sales, trades, transfers and withdrawals of cash or other of the Assets) without
the consent of the Pledgor or any other person (it being understood and agreed
by the Pledgor that the Approved Securities Intermediary shall have no duty or
obligation whatsoever of any kind or character to have knowledge of the terms of
the Pledge and Security Agreement or to determine whether or not an event of
default exists thereunder). The Pledgor hereby agrees to indemnify and hold
harmless the Approved Securities Intermediary, its affiliates, officers and
employees from and against any and all claims, causes of action, liabilities,
lawsuits, demands and/or damages, including any and all court costs and
reasonable attorney's fees, that may result by reason of the Approved Securities
Intermediary complying with such instructions of the Pledgee. In the event that
the Approved Securities Intermediary is sued or becomes involved in litigation
as a result of complying with the above stated written instructions, the Pledgor
and the Pledgee agree that the Approved Securities Intermediary shall be
entitled to charge all costs and fees it incurs in connection with such
litigation to the Assets in the Account and withdraw such sums as the costs and
charges accrue.

          The Authorized Officer of the Pledgee who shall give oral instructions
hereunder shall confirm the same in writing to the Approved Securities
Intermediary within five days after such oral instructions are given.

          For the purpose of this Agreement, the term "Authorized Officer of
Pledgor" shall refer in the singular to                  or
(each of whom is, on the date hereof, an officer or director of the Pledgor) and
"Authorized Officer of Pledgee" shall refer in the singular to any Person who is
a vice president or managing director of the Pledgee. In the event that the
Pledgor shall find it advisable to designate a replacement of any of its
Authorized Officers, written notice of any such replacement shall be given to
the Approved Securities Intermediary and the Pledgee.

          Except with respect to the obligations and duties as set forth herein,
this Agreement shall not impose or create any obligations or duties upon the
Approved Securities Intermediary greater than or in addition to the customary
and usual obligations and duties of the Approved Securities Intermediary to the
Pledgor.

          As long as the Assets are pledged to the Pledgee: (i) the Approved
Securities Intermediary will not invade the Assets to cover margin debits or
calls in any other accounts of the Pledgor and (ii) the Approved Securities
Intermediary agrees that, except for liens resulting from customary commissions,
fees, or charges based upon transactions in the Account, it subordinates in
favor of the Pledgee any security interest, lien or right of setoff the Approved
Securities Intermediary may have. The Approved Securities Intermediary
acknowledges that it has not received notice of any other security interest in
the Account or the Assets. In the event any such notice is received, the
Approved Securities Intermediary will promptly notify the Pledgee. The Pledgor
herein represents that the Assets are free and clear of any lien or encumbrances
and agrees that, with the exception of the security interest granted to the
Pledgee, no lien or encumbrance will be placed by it on the Assets without the
express written consent of both the Pledgee and the Approved Securities
Intermediary.

          This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns and it and the rights
and obligations of the parties hereto shall be governed by, and construed and
interpreted in accordance with, and the law

                                      A2-2

<PAGE>   38

of the Approved Securities Intermediary's jurisdiction for the purposes of
Section 8-110 of the UCC shall be, the law of the State of New York.

          The Approved Securities Intermediary will treat all property at any
time held by the Approved Securities Intermediary in the Account as financial
assets within the meaning of the Uniform Commercial Code. The Approved
Securities Intermediary acknowledges that this Agreement constitutes written
notification to the Approved Securities Intermediary, pursuant to the Uniform
Commercial Code and any applicable federal regulations for the Federal Reserve
Book Entry System, of the Pledgee's security interest in the Assets. The
Pledgor, Pledgee and Approved Securities Intermediary are entering into this
Agreement to provide for the Pledgee's control of the Assets and to confirm the
first and exclusive priority of the Pledgee's security interest in the Assets.
The Approved Securities Intermediary agrees to promptly make and thereafter
maintain all necessary entries or notations in its books and records to reflect
the Pledgee's security interest in the Assets.

          If any term or provision of this Agreement is determined to be invalid
or unenforceable, the remainder of this Agreement shall be construed in all
respects as if the invalid or unenforceable term or provision were omitted. This
Agreement may not be altered or amended in any manner without the express
written consent of the Pledgor, the Pledgee and the Approved Securities
Intermediary. This Agreement may be executed in any number of counterparts, all
of which shall constitute one original agreement.

          This Agreement may be terminated by the Approved Securities
Intermediary upon 30 day's prior written notice to the Pledgor and the Pledgee.
Upon expiration of such 30-day period, the Approved Securities Intermediary
shall be under no further obligation except to hold the Assets in accordance
with the terms of this Agreement, pending receipt of written instructions from
the Pledgor and the Pledgee, jointly, regarding the further disposition of the
pledged Assets.

          The Pledgor acknowledges that this Agreement supplements any existing
agreements of the Pledgor with the Approved Securities Intermediary and, except
as expressly provided herein, is in no way intended to abridge any rights that
the Approved Securities Intermediary might otherwise have.

                                      A2-3

<PAGE>   39

          IN WITNESS WHEREOF, the Pledgor and the Pledgee have caused this
Agreement to be executed by their duly authorized officers all as of the date
first above written.

                                   [PLEDGOR]

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

                                   CITICORP USA, INC., as Collateral Agent

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

ACCEPTED AND AGREED:

[Approved Financial Intermediary]

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

                                      A2-4

<PAGE>   40

                                    EXHIBIT A

                       PLEDGED COLLATERAL ACCOUNT NUMBER:

                                     ASSETS

                                      A2-5

<PAGE>   41

                                   ANNEX 3 TO
                          PLEDGE AND SECURITY AGREEMENT

                                PLEDGE AMENDMENT

          This PLEDGE AMENDMENT, dated as of               ,      , is delivered
pursuant to Section 4.4(e) of the Pledge and Security Agreement dated August 1,
2000 by Oxford Automotive, Inc. (the "Company"), the undersigned Grantor and
certain other Subsidiaries of the Company from time to time party thereto as
Grantors in favor of Citicorp USA, Inc., as agent for the Secured Parties
referred to therein (the "Pledge and Security Agreement") and the undersigned
hereby agrees that this Pledge Amendment may be attached to the Pledge and
Security Agreement and that the Pledged Collateral listed on this Pledge
Amendment shall be and become part of the Collateral referred to in the Pledge
and Security Agreement and shall secure all Secured Obligations of the
undersigned. Capitalized terms used herein but not defined herein are used
herein with the meaning given them in the Pledge and Security Agreement.

                                   [GRANTOR]

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

                                                           Number of
                                                           Shares, Units or
Issuer      Class       Certificate No(s).   Par Value     Interests
------      -----       ------------------   ---------     ----------------

                                      A3-1

<PAGE>   42

           Description of                                         Principal
Issuer     Debt             Certificate Nos.    Final Maturity      Amount
------     --------------   ----------------    --------------    ---------

ACKNOWLEDGED AND AGREED
as of the date of this Pledge Amendment
first above written.

CITICORP USA, INC., as Collateral Agent

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

                                      A3-2

<PAGE>   43

                                   ANNEX 4 TO
                          PLEDGE AND SECURITY AGREEMENT

                                JOINDER AGREEMENT

          This JOINDER AGREEMENT, dated as of              ,     , is delivered
pursuant to Section 7.10 of the Pledge and Security Agreement dated as of August
1, 2000, by Oxford Automotive Inc. (the "Company") and the Subsidiaries of the
Company listed on the signature pages thereof in favor of the Citicorp USA,
Inc., as agent for the Secured Parties referred to therein (the "Pledge and
Security Agreement"). Capitalized terms used herein but not defined herein are
used with the meanings given them in the Pledge and Security Agreement.

          By executing and delivering this Joinder Agreement, the undersigned,
as provided in Section 7.10 of the Pledge and Security Agreement, hereby becomes
a party to the Pledge and Security Agreement as a Grantor thereunder with the
same force and effect as if originally named as a Grantor therein and, without
limiting the generality of the foregoing, hereby grants to the Collateral Agent,
as collateral security for the full, prompt and complete payment and performance
when due (whether at stated maturity, by acceleration or otherwise) of the
Secured Obligations of the undersigned, hereby collaterally assigns, conveys,
mortgages, pledges, hypothecates and transfers to the Collateral Agent and
grants to the Collateral Agent a Lien on and security interest in, all of its
right, title and interest in, to and under the Collateral and expressly assumes
all obligations and liabilities of a Grantor thereunder.

          The information set forth in Annex 1-A is hereby added to the
information set forth in Schedules 1 through 5 to the Pledge and Security
Agreement.

          The undersigned hereby represents and warrants that each of the
representations and warranties contained in Section 3 of the Pledge and Security
Agreement applicable to it is true and correct on and as the date hereof as if
made on and as of such date.

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

                                   [ADDITIONAL GRANTOR]

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

ACKNOWLEDGED AND AGREED
as of the date of this Joinder Agreement
first above written.

CITICORP USA, INC., as Collateral Agent

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

                                      A4-1

<PAGE>   44

                                   ANNEX 5 TO
                          PLEDGE AND SECURITY AGREEMENT

                                     FORM OF
                          COPYRIGHT SECURITY AGREEMENT

          COPYRIGHT SECURITY AGREEMENT, dated as of                 ,      , by
                  (the "Borrower") and each of the other entities listed on the
signature pages hereof [or which becomes a party hereto pursuant to Section 7.10
of the Security Agreement referred to below] (each a "Grantor" and,
collectively, the "Grantors"), in favor of Citicorp USA, Inc. ("Citicorp"), as
agent for the Secured Parties (as defined in the Security Agreement referred to
below) (in such capacity, the "Collateral Agent").

                              W I T N E S S E T H:

          WHEREAS, pursuant to the Credit Agreement, dated as of July 31, 2000
(as the same may be amended, restated, supplemented or otherwise modified from
time to time, the "Credit Agreement") among the Borrower, the Lenders and
Issuers party thereto and Citicorp, as agent for the Lenders and Issuers, the
Lenders and the Issuers have severally agreed to make extensions of credit to
the Borrower upon the terms and subject to the conditions set forth therein; and

          WHEREAS, the Grantors other than the Borrower are party to the
Guaranty pursuant to which they have guaranteed the Obligations; and

          WHEREAS, all the Grantors are party to a Pledge and Security Agreement
of even date herewith in favor of the Collateral Agent (the "Security
Agreement") pursuant to which the Grantors are required to execute and deliver
this Copyright Security Agreement;

          NOW, THEREFORE, in consideration of the premises and to induce the
Lenders, the Issuers and the Collateral Agent to enter into the Credit Agreement
and to induce the Lenders and the Issuers to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby agrees with the
Collateral Agent as follows:

          SECTION 1. DEFINED TERMS. Unless otherwise defined herein, terms
defined in the Credit Agreement or in the Security Agreement and used herein
have the meaning given to them in the Credit Agreement or the Security
Agreement.

          SECTION 2. GRANT OF SECURITY INTEREST IN COPYRIGHT COLLATERAL. Each
Grantor, as collateral security for the full, prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or otherwise)
of the Secured Obligations of such Grantor, hereby collaterally assigns,
conveys, mortgages, pledges, hypothecates and transfers to the Collateral Agent
for the benefit of the Secured Parties, and grants to the Collateral Agent for
the benefit of the Secured Parties a lien on and security interest in, all of
its right, title and interest in, to and under the following Collateral of such
Grantor (the "Copyright Collateral"):

          (a) all of its Copyrights and Copyright Licenses to which it is a
party, including those referred to on Schedule I hereto;

          (b) all reissues, continuations or extensions of the foregoing; and

                                      A5-1

<PAGE>   45

          (c) all Proceeds of the foregoing, including any claim by Grantor
against third parties for past, present, future infringement or dilution of any
Copyright or Copyright licensed under any Copyright License.

          SECTION 3. SECURITY AGREEMENT. The security interest granted pursuant
to this Copyright Security Agreement is granted in conjunction with the security
interest granted to Collateral Agent pursuant to the Security Agreement and each
Grantor hereby acknowledges and affirms that the rights and remedies of
Collateral Agent with respect to the security interest in the Copyright
Collateral made and granted hereby are more fully set forth in the Security
Agreement, the terms and provisions of which are incorporated by reference
herein as if fully set forth herein.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                      A5-2

<PAGE>   46

          IN WITNESS WHEREOF, each Grantor has caused this Copyright Security
Agreement to be executed and delivered by its duly authorized offer as of the
date first set forth above.

                                   Very truly yours,

                                   [GRANTORS]

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

Accepted and Agreed:

CITICORP USA, INC.,
  as Collateral Agent

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

                                      A5-3

<PAGE>   47

                           Acknowledgement of Grantor

STATE OF                )
        ----------------
                         )   ss.
COUNTY OF               )
         ---------------

          On this     day of          ,         before me personally appeared
                    , proved to me on the basis of satisfactory evidence to be
the person who executed the foregoing instrument on behalf of                ,
who being by me duly sworn did depose and say that he is an authorized officer
of said corporation, that the said instrument was signed on behalf of said
corporation as authorized by its Board of Directors and that he acknowledged
said instrument to be the free act and deed of said corporation.

                          ----------------------------
                                  Notary Public

                                      A5-4

<PAGE>   48

                                   SCHEDULE I
                                       to
                          COPYRIGHT SECURITY AGREEMENT
                             COPYRIGHT REGISTRATIONS

A.   REGISTERED COPYRIGHTS
     Copyright Reg. No. Date

B.   COPYRIGHT APPLICATIONS

C.   COPYRIGHT LICENSES

     Name of Agreement, Parties, Date of Agreement

                                      A5-5

<PAGE>   49

          PATENT SECURITY AGREEMENT, dated as of             ,      , by Oxford
Automotive, Inc. (the "Company") and each of the other entities listed on the
signature pages hereof or which becomes a party hereto pursuant to Section 7.10
of the Security Agreement referred to below (each a "Grantor" and, collectively,
the "Grantors"), in favor of Citicorp USA, Inc. ("Citicorp"), as agent for the
Secured Parties (as defined in the Security Agreement referred to below) (in
such capacity, the "Collateral Agent").

                              W I T N E S S E T H:

          WHEREAS, pursuant to the Credit Agreement, dated as of July 31, 2000
(as the same may be amended, restated, supplemented or otherwise modified from
time to time, the "Credit Agreement") among the Borrower, the Lenders and
Issuers party thereto and Citicorp, as agent for the Lenders and Issuers, the
Lenders and the Issuers have severally agreed to make extensions of credit to
the Borrowers upon the terms and subject to the conditions set forth therein;
and

          WHEREAS, the Grantors are party to the Guaranty pursuant to which they
have guaranteed the Obligations; and

          WHEREAS, all the Grantors are party to a Pledge and Security Agreement
of even date herewith in favor of the Collateral Agent (the "Security
Agreement") pursuant to which the Grantors are required to execute and deliver
this Patent Security Agreement;

          NOW, THEREFORE, in consideration of the premises and to induce the
Lenders, the Issuers and the Collateral Agent to enter into the Credit Agreement
and to induce the Lenders and the Issuers to make their respective extensions of
credit to the Borrower thereunder, each Grantor hereby agrees with the
Collateral Agent as follows:

          SECTION 1. DEFINED TERMS. Unless otherwise defined herein, terms
defined in the Credit Agreement or in the Security Agreement and used herein
have the meaning given to them in the Credit Agreement or the Security
Agreement.

          SECTION 2. GRANT OF SECURITY INTEREST IN PATENT COLLATERAL. Each
Grantor, as collateral security for the full, prompt and complete payment and
performance when due (whether at stated maturity, by acceleration or otherwise)
of the Secured Obligations of such Grantor, hereby collaterally assigns,
conveys, mortgages, pledges, hypothecates and transfers to the Collateral Agent
for the benefit of the Secured Parties, and grants to the Collateral Agent for
the benefit of the Secured Parties a lien on and security interest in, all of
its right, title and interest in, to and under the following Collateral of such
Grantor (the "Patent Collateral"):

          (a) all of its Patents and Patent Licenses to which it is a party,
including those referred to on Schedule I hereto;

          (b) all reissues, continuations or extensions of the foregoing; and

          (c) all Proceeds of the foregoing, including any claim by Grantor
against third parties for past, present or future infringement or dilution of
any Patent or any Patent licensed under any Patent License.

                                      A6-1

<PAGE>   50

          SECTION 3. SECURITY AGREEMENT. The security interest granted pursuant
to this Patent Security Agreement is granted in conjunction with the security
interest granted to Collateral Agent pursuant to the Security Agreement and each
Grantor hereby acknowledges and affirms that the rights and remedies of
Collateral Agent with respect to the security interest in the Patent Collateral
made and granted hereby are more fully set forth in the Security Agreement, the
terms and provisions of which are incorporated by reference herein as if fully
set forth herein.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                      A6-2

<PAGE>   51

          IN WITNESS WHEREOF, each Grantor has caused this Patent Security
Agreement to be executed and delivered by its duly authorized offer as of the
date first set forth above.

                              OXFORD AUTOMOTIVE, INC.
                              LOBDELL EMERY CORPORATION
                              LEWIS EMERY CAPITAL CORPORATION
                              LASERWELD INTERNATIONAL, L.L.C.
                              PARALLEL GROUP INTERNATIONAL, INC.
                              CONCEPT MANAGEMENT CORPORATION
                              CREATIVE FABRICATION CORPORATION
                              WINCHESTER FABRICATION CORPORATION
                              OASP, INC.
                              OASP II, INC.
                              RPI HOLDINGS, INC.
                              RPI, INC.
                              PRUDENVILLE MANUFACTURING INC.
                              OXFORD SUSPENSION, INC.
                              HOWELL INDUSTRIES, INC.
                              CE TECHNOLOGIES, INC.
                              TOOL AND ENGINEERING COMPANY

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

Accepted and Agreed:

CITICORP USA, INC.,
  as Collateral Agent

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

                                      A6-3

<PAGE>   52

     ACKNOWLEDGEMENT OF GRANTOR

STATE OF                )
        ----------------
                         )    ss.

COUNTY OF               )
         ---------------

          On this      day of            ,        before me personally appeared
                     , proved to me on the basis of satisfactory evidence to be
the person who executed the foregoing instrument on behalf of                 ,
who being by me duly sworn did depose and say that he is an authorized officer
of said corporation, that the said instrument was signed on behalf of said
corporation as authorized by its Board of Directors and that he acknowledged
said instrument to be the free act and deed of said corporation.

                                             ---------------------------------
                                             Notary Public

                                      A6-4
<PAGE>   53

                                   SCHEDULE I
                                       to
                            PATENT SECURITY AGREEMENT
                              PATENT REGISTRATIONS

A.     REGISTERED PATENTS
       Patent Reg. No. Date

B.     PATENT APPLICATIONS

C.     PATENT LICENSES

       Name of Agreement, Parties, Date of Agreement

                                      A6-5

<PAGE>   54

                                   ANNEX 7 TO
                          PLEDGE AND SECURITY AGREEMENT

                                     FORM OF
                          TRADEMARK SECURITY AGREEMENT

                  TRADEMARK SECURITY AGREEMENT, dated as of        ,   ,  by
Oxford Automotive, Inc. (the "Company") and each of the other entities listed on
the signature pages hereof or which becomes a party hereto pursuant to Section
7.10 of the Security Agreement referred to below (each a "Grantor" and,
collectively, the "Grantors"), in favor of Citicorp USA, Inc. ("Citicorp"), as
agent for the Secured Parties (as defined in the Security Agreement referred to
below) (in such capacity, the "Collateral Agent").

                              W I T N E S S E T H:

                  WHEREAS, pursuant to the Credit Agreement, dated as of July
31, 2000 (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the "Credit Agreement") among the Borrower, the
Lenders and Issuers party thereto and Citicorp, as agent for the Lenders and
Issuers, the Lenders and the Issuers have severally agreed to make extensions of
credit to the Borrower upon the terms and subject to the conditions set forth
therein; and

                  WHEREAS, the Grantors are party to the Guaranty pursuant to
which they have guaranteed the Obligations; and

                  WHEREAS, all the Grantors are party to a Pledge and Security
Agreement of even date herewith in favor of the Collateral Agent (the "Security
Agreement") pursuant to which the Grantors are required to execute and deliver
this Trademark Security Agreement;

                  NOW, THEREFORE, in consideration of the premises and to induce
the Lenders, the Issuers and the Collateral Agent to enter into the Credit
Agreement and to induce the Lenders and the Issuers to make their respective
extensions of credit to the Borrower thereunder, each Grantor hereby agrees with
the Collateral Agent as follows:

                  SECTION 1. DEFINED TERMS. Unless otherwise defined herein,
terms defined in the Credit Agreement or in the Security Agreement and used
herein have the meaning given to them in the Credit Agreement or the Security
Agreement.

                  SECTION 2. GRANT OF SECURITY INTEREST IN TRADEMARK COLLATERAL.
Each Grantor, as collateral security for the full, prompt and complete payment
and performance when due (whether at stated maturity, by acceleration or
otherwise) of the Secured Obligations of such Grantor, hereby collaterally
assigns, conveys, mortgages, pledges, hypothecates and transfers to the
Collateral Agent for the benefit of the Secured Parties, and grants to the
Collateral Agent for the benefit of the Secured Parties a lien on and security
interest in, all of its right, title and interest in, to and under the following
Collateral of such Grantor (the "Trademark Collateral"):

                  (a) all of its Trademarks and Trademark Licenses to which it
is a party, including those referred to on Schedule I hereto;

                  (b) all reissues, continuations or extensions of the
foregoing;

                                      A7-1

<PAGE>   55

                  (c) all goodwill of the business connected with the use of,
and symbolized by, each Trademark and each Trademark License; and

                  (d) all Proceeds of the foregoing, including any claim by
Grantor against third parties for past, present, future (i) infringement or
dilution of any Trademark or Trademark licensed under any Trademark License or
(ii) injury to the goodwill associated with any Trademark or any Trademark
licensed under any Trademark License.

                  SECTION 3. SECURITY AGREEMENT. The security interest granted
pursuant to this Trademark Security Agreement is granted in conjunction with the
security interest granted to Collateral Agent pursuant to the Security Agreement
and each Grantor hereby acknowledges and affirms that the rights and remedies of
Collateral Agent with respect to the security interest in the Trademark
Collateral made and granted hereby are more fully set forth in the Security
Agreement, the terms and provisions of which are incorporated by reference
herein as if fully set forth herein.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                      A7-2

<PAGE>   56

                  IN WITNESS WHEREOF, each Grantor has caused this Trademark
Security Agreement to be executed and delivered by its duly authorized offer as
of the date first set forth above.

                                            Very truly yours,

                                            OXFORD AUTOMOTIVE, INC.
                                            LOBDELL EMERY CORPORATION
                                            LEWIS EMERY CAPITAL CORPORATION
                                            LASERWELD INTERNATIONAL, L.L.C.
                                            PARALLEL GROUP INTERNATIONAL, INC.
                                            CONCEPT MANAGEMENT CORPORATION
                                            CREATIVE FABRICATION CORPORATION
                                            WINCHESTER FABRICATION CORPORATION
                                            OASP, INC.
                                            OASP II, INC.
                                            RPI HOLDINGS, INC.
                                            RPI, INC.
                                            PRUDENVILLE MANUFACTURING INC.
                                            OXFORD SUSPENSION, INC.
                                            HOWELL INDUSTRIES, INC.
                                            CE TECHNOLOGIES, INC.
                                            TOOL AND ENGINEERING COMPANY

                                            By:
                                               =================================
                                                Name:
                                                Title:

Accepted and Agreed:

CITICORP USA, INC.,
 as Collateral Agent

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

                                      A7-3
<PAGE>   57
                           ACKNOWLEDGEMENT OF GRANTOR

STATE OF _______________)
                         )    ss.
COUNTY OF ___________ __)

                 On this     day of         ,      before me personally appeared
                      , proved to me on the basis of satisfactory evidence to be
the person who executed the foregoing instrument on behalf of                 ,
who being by me duly sworn did depose and say that he is an authorized officer
of said corporation, that the said instrument was signed on behalf of said
corporation as authorized by its Board of Directors and that he acknowledged
said instrument to be the free act and deed of said corporation.

                                                     --------------------------
                                                     Notary Public

<PAGE>   58

                                   SCHEDULE I
                                       to
                          TRADEMARK SECURITY AGREEMENT
                             TRADEMARK REGISTRATIONS

A.     REGISTERED TRADEMARKS

       MarkReg. No. Date

B.     TRADEMARK APPLICATIONS

C.     TRADEMARK LICENSES

       Name of Agreement, Parties, Date of Agreement

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