Document:

<PAGE>
                                                                               .
                                                                               .
                                                                               .

                                                                   EXHIBIT 10.13

                                 PROMISSORY NOTE

<TABLE>
<CAPTION>
PRINCIPAL    LOAN DATE   MATURITY    LOAN NO    CALL/COLL  ACCOUNT  OFFICER  INITIALS
<S>          <C>         <C>         <C>        <C>        <C>      <C>      <C>
$500,000.00  10-31-2003  10-30-2008  300146144                        BLH
</TABLE>

  REFERENCES IN THE SHADED AREA ARE FOR LENDER'S USE ONLY AND DO NOT LIMIT THE
  APPLICABILITY OF THIS DOCUMENT TO ANY PARTICULAR LOAN OR ITEM. ANY ITEM ABOVE
       CONTAINING" * * *" HAS BEEN OMITTED DUE TO TEXT LENGTH LIMITATIONS.

<TABLE>
<S>                                                      <C>
BORROWER: BRAINERD INTERNATIONAL RACEWAY & RESORT, INC.  LENDER:  FIRST NATIONAL BANK OF DEERWOOD
          (TIN: 41-1824127                                        BRAINERD BRANCH
          5523 BIRCHDALE  RD                                      PO BOX 527
          BRAINERD, MN 56401                                      724 W WASHINGTON ST BRAINERD, MN
                                                                  56401-0527 (218) 828.2111
</TABLE>

<TABLE>
<S>                             <C>                    <C>
PRINCIPAL AMOUNT: $500,000.00   INITIAL RATE: 6.500%   DATE OF NOTE: OCTOBER 31, 2003
</TABLE>

PROMISE TO PAY. BRAINERD INTERNATIONAL RACEWAY & RESORT, INC.

("BORROWER") PROMISES TO PAY TO FIRST NATIONAL BANK OF DEERWOOD ("LENDER"), OR
ORDER, IN LAWFUL MONEY OF THE UNITED STATES OF AMERICA, THE PRINCIPAL AMOUNT OF
FIVE HUNDRED THOUSAND & 00/100 DOLLARS ($500,000.00), TOGETHER WITH INTEREST ON
THE UNPAID PRINCIPAL BALANCE FROM OCTOBER 31,2003, UNTIL PAID IN FULL.

PAYMENT. SUBJECT TO ANY PAYMENT CHANGES RESULTING FROM CHANGES IN THE INDEX,
BORROWER WILL PAY THIS LOAN IN 60 PAYMENTS OF $9,803.99 EACH PAYMENT. BORROWER'S
FIRST PAYMENT IS DUE NOVEMBER 30, 2003, AND ALL SUBSEQUENT PAYMENTS ARE DUE ON
THE SAME DAY OF EACH MONTH AFTER THAT, BORROWER'S FINAL PAYMENT WILL BE DUE ON
OCTOBER 30, 2008, AND WILL BE FOR ALL PRINCIPAL AND ALL ACCRUED INTEREST NOT YET
PAID. PAYMENTS INCLUDE PRINCIPAL AND INTEREST. UNLESS OTHERWISE AGREED OR
REQUIRED BY APPLICABLE LAW, PAYMENTS WILL BE APPLIED FIRST TO ANY ACCRUED UNPAID
INTEREST; THEN TO PRINCIPAL; THEN TO ANY UNPAID COLLECTION COSTS; AND THEN TO
ANY LATE CHARGES. THE ANNUAL INTEREST RATE FOR THIS NOTE IS COMPUTED ON A
365/360 BASIS; THAT IS, BY APPLYING THE RATIO OF THE ANNUAL INTEREST RATE OVER A
YEAR OF 360 DAYS, MULTIPLIED BY THE OUTSTANDING PRINCIPAL BALANCE, MULTIPLIED BY
THE ACTUAL NUMBER OF DAYS THE PRINCIPAL BALANCE IS OUTSTANDING. BORROWER WILL
PAY LENDER AT LENDER'S ADDRESS SHOWN ABOVE OR AT SUCH OTHER PLACE AS LENDER MAY
DESIGNATE IN WRITING.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from
time to time based on changes in an independent index, which is the Wall Street
Journal Prime Rate (the "Index"). The Index is not necessarily the lowest rate
charged by Lender on its loans. If the Index becomes unavailable during the term
of this loan, Lender may designate a substitute index after notice to Borrower.
Lender will tell Borrower the current Index rate upon Borrower's request. The
interest rate change will not occur more often than each day. Borrower
understands that Lender may make loans based on other rates as well. THE INDEX
CURRENTLY IS 4.000% PER ANNUM. THE INTEREST RATE TO BE APPLIED TO THE UNPAID
PRINCIPAL BALANCE OF THIS NOTE WILL BE AT A RATE OF 2.500 PERCENTAGE POINTS OVER
THE INDEX, ADJUSTED IF NECESSARY FOR ANY MINIMUM AND MAXIMUM RATE LIMITATIONS
DESCRIBED BELOW, RESULTING IN AN INITIAL RATE OF 6.500% PER ANNUM.
NOTWITHSTANDING THE FOREGOING, THE VARIABLE INTEREST RATE OR RATES PROVIDED FOR
IN THIS NOTE WILL BE SUBJECT TO THE FOLLOWING MINIMUM AND MAXIMUM RATES. NOTICE:
Under no circumstances will the interest rate on this Note be less than 6.000%
per annum or more than the maximum rate allowed by applicable law. Whenever
increases occur in the interest rate, Lender, at its option, may do one or more
of the following: (A) increase Borrower's payments to ensure Borrower's loan
will payoff by its original final maturity date, (B) increase Borrower's
payments to cover accruing interest, (C) increase the number of Borrower's
payments, and (D) continue Borrower's payments at the same amount and increase
Borrower's final payment.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due. Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower's obligation to continue to make payments
under the payment schedule. Rather, early payments will reduce the principal
balance due and may result in Borrower's making fewer payments. Borrower agrees
not to send Lender payments marked "paid in full", "without recourse", or
similar language. If Borrower sends such a payment, Lender may accept it without
losing any of Lender's rights under this Note, and Borrower will remain
obligated to pay any further amount owed to Lender. All written communications
concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes "payment in full" of the amount owed
or that is tendered with other conditions or limitations or as full satisfaction
of a disputed amount must be mailed or delivered to: First National Bank of
Deerwood, Brainerd Branch, PO Box 527,724 W Washington St, Brainerd, MN
56401-0527.

LATE CHARGE. If a payment is 15 days or more late, Borrower will be charged
5.000% OF THE UNPAID PORTION OF THE REGULARLY SCHEDULED PAYMENT OR $6.24,
WHICHEVER IS GREATER.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final
maturity, the total sum due under this Note will bear interest from the date of
acceleration or maturity at the variable interest rate on this Note. The
interest rate will not exceed the maximum rate permitted by applicable law.

DEFAULT. Each of the following shall constitute an event of default ("Event of
Default") under this Note:

     PAYMENT DEFAULT. Borrower fails to make any payment when due under this
     note

     OTHER DEFAULTS. Borrower fails to comply with or to perform any other term,
     obligation, covenant or condition contained in this Note or in any of the
     related documents or to comply with or to perform any term, obligation,
     covenant or condition contained in any other agreement between Lender and
     Borrower.

     DEFAULT IN FAVOR OF THIRD PARTIES. Borrower or any Grantor defaults under
     any loan, extension of credit, security agreement, purchase or sales
     agreement, or any other agreement, in favor of any other creditor or person
     that may materially affect any of Borrower's property or

<PAGE>

     Borrower's ability to repay this Note or perform Borrower's obligations
     under this Note or any of the related documents.

     FALSE STATEMENTS. Any warranty, representation or statement made or
     furnished to Lender by Borrower or on Borrower's behalf under this Note or
     the related documents is false or misleading in any material respect,
     either now or at the time made or furnished or becomes false or misleading
     at any time thereafter.

     INSOLVENCY. The dissolution or termination of Borrower's existence as a
     going business, the insolvency of Borrower, the appointment of a receiver
     for any part of Borrower's property, any assignment for the benefit of
     creditors, any type of creditor workout, or the commencement of any
     proceeding under any bankruptcy or insolvency laws by or against Borrower.

     CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of Borrower or by any
     governmental agency against any collateral securing the loan. This includes
     a garnishment of any of Borrower's accounts, including deposit accounts,
     with Lender. However, this Event of Default shall not apply if there is a
     good faith dispute by Borrower as to the validity or reasonableness of the
     claim which is the basis of the creditor or forfeiture proceeding and if
     Borrower gives Lender written notice of the creditor or forfeiture
     proceeding and deposits with Lender monies or a surety bond for the
     creditor or forfeiture proceeding, in an amount determined by Lender, in
     its sole discretion, as being an adequate reserve or bond for the dispute.

     EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with respect
     to any guarantor, endorser, surety, or accommodation party of any of the
     indebtedness or any guarantor, endorser, surety, or accommodation party
     dies or becomes incompetent, or revokes or disputes the validity of, or
     liability under, any guaranty of the indebtedness evidenced by this Note.
     In the event of a death, Lender, at its option, may, but shall not be
     required to, permit the guarantor's estate to assume unconditionally the
     obligations arising under the guaranty in a manner satisfactory to Lender,
     and, in doing so, cure any Event of Default.

     CHANGE IN OWNERSHIP. Any change in ownership of twenty-five percent (25%)
     or more of the common stock of Borrower.

     ADVERSE CHANGE. A material adverse change occurs in Borrower's financial
     condition, or Lender believes the prospect of payment or performance of
     this Note is impaired.

     INSECURITY. Lender in good faith believes itself insecure.

     CURE PROVISIONS. If any default, other than a default in payment is curable
     and if Borrower has not been given a notice of a breach of the same
     provision of this Note within the preceding twelve (12) months, it may be
     cured (and no event of default will have occurred) if Borrower, after
     receiving written notice from Lender demanding cure of such default: (1)
     cures the default within fifteen (15) days; or (2) if the cure requires
     more than fifteen (15) days, immediately initiates steps which Lender deems
     in Lender's sole discretion to be sufficient to cure the default and
     thereafter continues and completes all reasonable and necessary steps
     sufficient to produce compliance as soon as reasonably practical.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due and then
Borrower will pay that amount.

ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect
this Note if Borrower does not pay. Borrower will pay Lender that amount. This
includes, subject to any limits under applicable law, Lender's reasonable
attorneys' fees and Lender's legal expenses, whether or not there is a lawsuit,
including reasonable attorneys' fees, expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction), and
appeals. If not prohibited by applicable law, Borrower also will pay any court
costs, in addition to all other sums provided by law.

GOVERNING LAW. THIS NOTE WILL BE GOVERNED BY, CONSTRUED AND ENFORCED IN
ACCORDANCE WITH FEDERAL LAW AND THE LAWS OF THE STATE OF MINNESOTA. THIS NOTE
HAS BEEN ACCEPTED BY LENDER IN THE STATE OF MINNESOTA.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to
submit to the jurisdiction of the courts of Crow Wing County, State of
Minnesota.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $18.00 if Borrower
makes a payment on Borrower's loan and the check or pre authorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Borrower's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds
jointly with someone else and all accounts Borrower may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
indebtedness against any and all such accounts, and, at Lender's option, to
administratively freeze all such accounts to allow Lender to protect Lender's
charge and setoff rights provided in this paragraph.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and
upon Borrower's heirs, personal representatives, successors and assigns, and
shall inure to the benefit of Lender and its successors and assigns.

NOTIFY US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES.
Please notify us if we report any inaccurate information about your account(s)
to a consumer reporting agency. Your written notice describing the specific

<PAGE>

inaccuracy(ies) should be sent to us at the following address: First National
Bank of Deerwood PO Box 520 Deerwood, MN 56444-0520

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party
who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan or release
any party or guarantor or collateral; or impair, fail to realize upon or perfect

Lender's security interest in the collateral; and take any other action deemed
necessary by Lender without the consent of or notice to anyone.

All such parties also agree that Lender may modify this loan without the consent
of or notice to anyone other than the party with whom the modification is made.
The obligations under this Note are joint and several.

SECTION DISCLOSURE. This loan is made under Minnesota Statutes, Section 47.59.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO
THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

BRAINERD INTERNATIONAL RACEWAY & RESORT,INC.

BY: COPY
    ----------------------------------------
    BILL SINGLETERRY, PRESIDENT OF BRAINERD
      INTERNATIONAL RACEWAY & RESORT, INC.

<PAGE>

                          COMMERCIAL SECURITY AGREEMENT

<TABLE>
<CAPTION>
PRINCIPAL    LOAN DATE   MATURITY    LOAN NO    CALL/COLL  ACCOUNT  OFFICER  INITIALS
<S>          <C>         <C>         <C>        <C>        <C>      <C>      <C>
$500,000.00  10-31-2003  10-30-2008  300146144                        BLH
</TABLE>

  References in the shaded area are for Lender's use only and do not limit the
  applicability of this document to any particular loan or item. Any item above
       containing" * * *" has been omitted due to text length limitations.

<TABLE>
<S>                                                      <C>
BORROWER: BRAINERD INTERNATIONAL RACEWAY & RESORT, INC.  LENDER:  FIRST NATIONAL BANK OF DEERWOOD
          (TIN: 41-1824127                                        BRAINERD BRANCH
          5523 BIRCHDALE  RD                                      PO BOX 527
          BRAINERD, MN 56401                                      724 W WASHINGTON ST BRAINERD, MN
                                                                  56401-0527 (218) 828.2111
</TABLE>

THIS COMMERCIAL SECURITY AGREEMENT DATED OCTOBER 31, 2003, IS MADE AND EXECUTED
BETWEEN BRAINERD INTERNATIONAL RACEWAY & RESORT, INC.
("GRANTOR") AND FIRST NATIONAL BANK OF DEERWOOD ("LENDER").

GRANT OF SECURITY INTEREST. FOR VALUABLE CONSIDERATION, GRANTOR GRANTS TO LENDER
A SECURITY INTEREST IN THE COLLATERAL TO SECURE THE INDEBTEDNESS AND AGREES THAT
LENDER SHALL HAVE THE RIGHTS STATED IN THIS AGREEMENT WITH RESPECT TO THE
COLLATERAL, IN ADDITION TO ALL OTHER RIGHTS WHICH LENDER MAY HAVE BY LAW.

COLLATERAL DESCRIPTION. The word "Collateral" as used in this Agreement means
the following described property, whether now owned or hereafter acquired,
whether now existing or hereafter arising, and wherever located, in which
Grantor is giving to Lender a security interest for the payment of the
Indebtedness and performance of all other obligations under the Note and this
Agreement:

     ALL EQUIPMENT

In addition, the word "Collateral" also includes all the following, whether now
owned or hereafter acquired, whether now existing or hereafter arising, and
wherever located:

     (A) All accessions, attachments, accessories, tools, parts, supplies,
     replacements of and additions to any of the collateral described herein,
     whether added now or later.

     (B) All products and produce of any of the property described in this
     Collateral section.

     (C) All accounts, general intangibles, instruments, rents, monies,
     payments, and all other rights, arising out of a sale, lease, consignment
     or other disposition of any of the property described in this Collateral
     section.

     (D) All proceeds (including insurance proceeds) from the sale, destruction,
     loss, or other disposition of any of the property described in this
     Collateral section, and sums due from a third party who has damaged or
     destroyed the Collateral or from that party's insurer, whether due to
     judgment, settlement or other process.

     (E) All records and data relating to any of the property described in this
     Collateral section, whether in the form of a writing, photograph,
     microfilm, microfiche, or electronic media, together with all of Grantor's
     right, title, and interest in and to all computer software required to
     utilize, create, maintain, and process any such records or data on
     electronic media.

Despite any other provision of this Agreement, Lender is not granted, and will
not have, a nonpurchase money security interest in household goods, to the
extent such a security interest would be prohibited by applicable law. In
addition, if because of the type of any Property, Lender is required to give a
notice of the right to cancel under Truth in Lending for the Indebtedness, then
Lender will not have a security interest in such Collateral unless and until
such a notice is given. '

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Grantor's accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Grantor holds
jointly with someone else and all accounts Grantor may open in the future.
However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Grantor authorizes Lender, to the
extent permitted by applicable law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts, and, at Lender's option, to
administratively freeze all such accounts to allow Lender to protect Lender's
charge and setoff rights provided in this paragraph.

GRANTOR'S REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. With
respect to the Collateral, Grantor represents and promises to Lender that:

     PERFECTION OF SECURITY INTEREST. Grantor agrees to execute financing
     statements and to take whatever other actions are requested by Lender to
     perfect and continue Lender's security interest in the Collateral. Upon
     request of Lender, Grantor will deliver to Lender any and all of the
     documents evidencing or constituting the Collateral, and Grantor will note
     Lender's interest upon any and all chattel paper if not delivered to Lender
     for possession by Lender. This is a continuing Security Agreement and will
     continue in effect even though all or any part of the Indebtedness is paid
     in full and even though for a period of time Grantor may not be indebted to
     Lender.

     NOTICES TO LENDER. Grantor will promptly notify Lender in writing at
     Lender's address shown above (or such other addresses as Lender may
     designate from time to time) prior to any (1) change in Grantor's name; (2)
     change in Grantor's assumed business name(s); (3) change in the management
     of the Corporation Grantor; (4) change in the authorized signer(s); (5)
     change in Grantor's principal office address; (6) change in Grantor's state
     of organization; (7) conversion of Grantor to a new or different type of
     business entity; or (8) change in any other aspect of Grantor that directly
     or indirectly relates to any agreements between Grantor and Lender. No
     change in Grantor's name or state of organization will take effect until
     after Lender has received notice.

<PAGE>

     NO VIOLATION. The execution and delivery of this Agreement will not violate
     any law or agreement governing Grantor or to which Grantor is a party, and
     its certificate or articles of incorporation and bylaws do not prohibit any
     term or condition of this Agreement.

ENFORCEABILITY OF COLLATERAL. To the extent the Collateral consists of accounts,
chattel paper, or general intangibles, as defined by the Uniform Commercial
Code, the Collateral is enforceable in accordance with its terms, is genuine,
and fully complies with all applicable laws and regulations concerning form,
content and manner of preparation and execution, and all persons appearing to be
obligated on the Collateral have authority and capacity to contract and are in
fact obligated as they appear to be on the Collateral. There shall be no setoffs
or counterclaims against any of the Collateral and no agreement shall have been
made under which any deductions or discounts may be claimed concerning the
Collateral except those disclosed to Lender in writing.

LOCATION OF THE COLLATERAL. Except in the ordinary course of Grantor's business,
Grantor agrees to keep the Collateral at Grantor's address shown above or at
such other locations as are acceptable to Lender. Upon Lender's request, Grantor
will deliver to Lender in form satisfactory to Lender a schedule of real
properties and Collateral locations relating to Grantor's operations, including
without limitation the following: (1) all real property Grantor owns or is
purchasing; (2) all real property Grantor is renting or leasing; (3) all storage
facilities Grantor owns, rents, leases, or uses; and (4) all other properties
where Collateral is or may be located.

REMOVAL OF THE COLLATERAL. Except in the ordinary course of Grantor's business,
Grantor shall not remove the Collateral from its existing location without
Lender's prior written consent. To the extent that the Collateral consists of
vehicles, or other titled property, Grantor shall not take or permit any action,
which would require application for certificates of title for the vehicles
outside the State of Minnesota, without Lender's prior written consent. Grantor
shall, whenever requested, advise Lender of the exact location of the
Collateral.

TRANSACTIONS INVOLVING COLLATERAL. Except for inventory sold or accounts
collected in the ordinary course of Grantor's business, or as otherwise provided
for in this Agreement, Grantor shall not sell, offer to sell, or otherwise
transfer or dispose of the Collateral. Grantor shall not pledge, mortgage,
encumber or otherwise permit the Collateral to be subject to any lien, security
interest, encumbrance, or charge, other than the security interest provided for
in this Agreement, without the prior written consent of Lender. This includes
security interests even if junior in right to the security interests granted
under this Agreement. Unless waived by Lender, all proceeds from any disposition
of the Collateral (for whatever reason) shall be held in trust for Lender and
shall not be commingled with any other funds; provided however, this requirement
shall not constitute consent by Lender to any sale or other disposition. Upon
receipt, Grantor shall immediately deliver any such proceeds to Lender.

TITLE. Grantor represents and warrants to Lender that Grantor holds good and
marketable title to the Collateral, free and clear of all liens and encumbrances
except for the lien of this Agreement. No financing statement covering any of
the Collateral is on file in any public office other than those which reflect
the security interest created by this Agreement or to which Lender has
specifically consented. Grantor shall defend Lender's rights in the Collateral
against the claims and demands of all other persons.

REPAIRS AND MAINTENANCE. Grantor agrees to keep and maintain, and to cause
others to keep and maintain the Collateral in good order, repair and condition
at all times while this Agreement remains in effect. Grantor further agrees to
pay when due all claims for work done on, or services rendered or material
furnished in connection with the Collateral so that no lien or encumbrance may
ever attach to or be filed against the Collateral.

INSPECTION OF COLLATERAL. Lender and Lender's designated representatives and
agents shall have the right at all reasonable times to examine and inspect the
Collateral wherever located.

TAXES, ASSESSMENTS AND LIENS. Grantor will pay when due all taxes, assessments
and liens upon the Collateral, its use or operation, upon this Agreement, upon
any promissory note or notes evidencing the Indebtedness, or upon any of the
other Related Documents. Grantor may withhold any such payment or may elect to
contest any lien if Grantor is in good faith conducting an appropriate
proceeding to contest the obligation to pay and so long as Lender's interest in
the Collateral is not jeopardized in Lender's sole opinion. If the Collateral is
subjected to a lien which is not discharged within fifteen (15) days, Grantor
shall deposit with Lender cash, a sufficient corporate surety bond or other
security satisfactory to Lender in an amount adequate to provide for the
discharge of the lien plus any interest, costs, reasonable attorneys' fees or
other charges that could accrue as a result of foreclosure or sale of the
Collateral. In any contest Grantor shall defend itself and Lender and shall
satisfy any final adverse judgment before enforcement against the Collateral.
Grantor shall name Lender as an additional obligee under any surety bond
furnished in the contest proceedings. Grantor further agrees to furnish Lender
with evidence that such taxes, assessments, and governmental and other charges
have been paid in full and in a timely manner. Grantor may withhold any such
payment or may elect to contest any lien if Grantor is in good faith conducting
an appropriate proceeding to contest the obligation to pay and so long as
Lender's interest in the Collateral is not jeopardized.

COMPLIANCE WITH GOVERNMENTAL REQUIREMENTS. Grantor shall comply promptly with
all laws, ordinances, rules and regulations of all governmental authorities, now
or hereafter in effect, applicable to the ownership, production, disposition, or
use of the Collateral, including all laws or regulations relating to the undue
erosion of highly-erodible land or relating to the conversion of wetlands for
the production of an agricultural product or commodity. Grantor may contest in
good faith any such law, ordinance or regulation and withhold compliance during
any proceeding, including appropriate appeals, so long as Lender's interest in
the Collateral, in Lender's opinion, is not jeopardized.

HAZARDOUS SUBSTANCES. Grantor represents and warrants that the Collateral never
has been, and never will be so long as this Agreement remains a lien on the
Collateral, used in violation of any Environmental laws or for the generation,
manufacture, storage, transportation, treatment, disposal, release or threatened
release of any Hazardous Substance. The representations and warranties contained
herein are based on Grantor's due diligence in investigating the Collateral for
Hazardous Substances. Grantor hereby (1) releases and waives any future claims
against Lender for indemnity or contribution in the event Grantor becomes liable
for cleanup or other costs under any Environmental laws, and (2) agrees to
indemnify and hold harmless Lender against any and all claims and losses
resulting from a breach of this provision of this Agreement. This obligation to
indemnify shall survive the payment of the Indebtedness and the satisfaction of
this Agreement.

MAINTENANCE OF CASUALTY INSURANCE. Grantor shall procure and maintain all risks
insurance, including without limitation fire, theft and liability coverage
together with such other insurance as Lender may require with respect to the
Collateral, in form, amounts, coverages and basis reasonably acceptable to
Lender and issued by a company or companies reasonably acceptable to Lender.
Grantor, upon request of Lender, will deliver to Lender from time to time the
policies or certificates of insurance in form satisfactory to Lender, including
stipulations that coverages will not be

<PAGE>

cancelled or diminished without at least thirty (30) days' prior written notice
to Lender and not including any disclaimer of the insurer's liability for
failure to give such a notice. Each insurance policy also shall include an
endorsement providing that coverage in favor of Lender will not be impaired in
any way by any act, omission or default of Grantor or any other person. In
connection with all policies covering assets in which Lender holds or is offered
a security interest, Grantor will provide Lender with such loss payable or other
endorsements as Lender may require. If Grantor at any time fails to obtain or
maintain any insurance as required under this Agreement, Lender may (but shall
not be obligated to) obtain such insurance as Lender deems appropriate,
including if Lender so chooses. single interest insurance," which will cover
only Lender's interest in the Collateral.

APPLICATION OF INSURANCE PROCEEDS. Grantor shall promptly notify Lender of any
loss or damage to the Collateral. Lender may make proof of loss if Grantor fails
to do so within fifteen (15) days of the casualty. All proceeds of any insurance
on the Collateral, including accrued proceeds thereon, shall be held by Lender
as part of the Collateral. If Lender consents to repair or replacement of the
damaged or destroyed Collateral, Lender shall, upon satisfactory proof of
expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost
of repair or restoration. If Lender does not consent to repair or replacement of
the Collateral, Lender shall retain a sufficient amount of the proceeds to pay
all of the Indebtedness, and shall pay the balance to Grantor. Any proceeds
which have not been disbursed within six (6) months after their receipt and
which Grantor has not committed to the repair or restoration of the Collateral
shall be used to prepay the Indebtedness.

INSURANCE RESERVES. Lender may require Grantor to maintain with Lender reserves
for payment of insurance premiums, which reserves shall be created by monthly
payments from Grantor of a sum estimated by Lender to be sufficient to produce,
at least fifteen (15) days before the premium due date, amounts at least equal
to the insurance premiums to be paid. If fifteen (15) days before payment is
due, the reserve funds are insufficient, Grantor shall upon demand pay any
deficiency to Lender. The reserve funds shall be held by Lender as a general
deposit and shall constitute a non-interest-bearing account which Lender may
satisfy by payment of the insurance premiums required to be paid by Grantor as
they become due. Lender does not hold the reserve funds in trust for Grantor,
and Lender is not the agent of Grantor for payment of the insurance premiums
required to be paid by Grantor. The responsibility for the payment of premiums
shall remain Grantor's sole responsibility.

INSURANCE REPORTS. Grantor, upon request of Lender, shall furnish to Lender
reports on each existing policy of insurance showing such information as Lender
may reasonably request including the following: (1) the name of the insurer; (2)
the risks insured; (3) the amount of the policy; (4) the property insured; (5)
the then current value on the basis of which, insurance has been obtained and
the manner of determining that value; and (6) the expiration date of the policy.
In addition, Grantor shall upon request by Lender (however not more often than
annually) have an independent appraiser satisfactory to Lender determine, as
applicable, the cash value or replacement cost of the Collateral.

FINANCING STATEMENTS. Grantor authorizes Lender to file an UCC-1 financing
statement, or alternatively, a copy of this Agreement to perfect Lender's
security interest. At Lender's request, Grantor additionally agrees to sign all
other documents that are necessary to perfect, protect, and continue Lender's
security interest in the Property. This includes making sure Lender is shown as
the first and only security interest holder on the title covering the Property.
Grantor will pay all filing fees, title transfer fees, and other fees and costs
involved unless prohibited by law or unless Lender is required by law to pay
such fees and costs. Grantor irrevocably appoints Lender to execute financing
statements and documents of title' in Grantor's name and to execute all
documents necessary to transfer title if there is a default. Lender may file a
copy of this Agreement as a financing statement. If Grantor changes Grantor's
name or address, or the name or address of any person granting a security
interest under this Agreement changes, Grantor will promptly notify the Lender
of such change.

GRANTOR'S RIGHT TO POSSESSION. Until default, Grantor may have possession of the
tangible personal property and beneficial use of all the Collateral and may .use
it in any lawful manner not inconsistent with this Agreement or the Related
Documents, provided that Grantor's right to possession and beneficial use shall
not apply to any Collateral where possession of the Collateral by Lender is
required by law to perfect Lender's security interest in such Collateral. If
Lender at any time has possession of any Collateral, whether before or after an
Event of Default, Lender shall be deemed to have exercised-reasonable care in
the custody and preservation of the Collateral if Lender takes such action for
that purpose as Grantor shall request or as Lender, in Lender's sole discretion,
shall deem appropriate under the circumstances, but failure to honor any request
by Grantor shall not of itself be deemed to be a failure to exercise reasonable
care. Lender shall not be required to take any steps necessary to preserve any
rights in the Collateral against prior parties, nor to protect, preserve or
maintain any security interest given to secure the Indebtedness.

LENDER'S EXPENDITURES. If any action or proceeding is commenced that would
materially affect Lender's interest in the Collateral or if Grantor fails to
comply with any provision of this Agreement or any Related Documents, including
but not limited to Grantor's failure to discharge or pay when due any amounts
Grantor is required to discharge or pay under this Agreement or any Related
Documents, Lender on Grantor's behalf may (but shall not be obligated to) take
any action that Lender deems appropriate, including but not limited to
discharging or paying all taxes, liens, security interests, encumbrances and
other claims, at any time levied or placed on the Collateral and paying all
costs for insuring, maintaining and preserving the Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear
interest at the rate charged under the Note from the date incurred or paid by
Lender to the date of repayment by Grantor. All such expenses will become a part
of the Indebtedness and, at Lender's option, will (A) be payable on demand; (B)
be added to the balance of the Note and be apportioned among and be payable with
any installment payments to become due during either (1) the term of any
applicable insurance policy; or (2) the remaining term of the Note; or (C) be
treated as a balloon payment which will be due and payable at the Note's
maturity. The Agreement also will secure payment of these amounts. Such right
shall be in addition to all other rights and remedies to which Lender may be
entitled upon Default. '

DEFAULT. Each of the following shall constitute an Event of Default under this
Agreement:

   PAYMENT DEFAULT. Grantor fails to make any payment when due under the
   Indebtedness.

     OTHER DEFAULTS. Grantor fails to comply with or to perform any other term,
     obligation, covenant or condition contained in this Agreement or in any of
     the Related Documents or to comply with or to perform any term,
     obligatiol1, covenant or condition contained in any other agreement between
     Lender and Grantor.

     DEFAULT IN FAVOR OF THIRD PARTIES. Should Borrower or any Grantor default
     under any loan, extension of credit, security agreement, purchase or sales
     agreement, or any other agreement, in favor of any other creditor or person
     that may materially affect any of Grantor's property or Grantor's or any
     Grantor's ability to repay the Indebtedness or perform their respective
     obligations under this Agreement or

<PAGE>

     any of the Related Documents.

     FALSE STATEMENTS. Any warranty, representation or statement made or
     furnished to Lender by Grantor or on Grantor's behalf under this Agreement
     or the Related Documents is false or misleading in any material respect,
     either now or at the time made or furnished or becomes false or misleading
     at any time thereafter.

     DEFECTIVE COLLATERALIZATION. This Agreement or any of the Related Documents
     ceases to be in full force and effect (including failure of any collateral
     document to create a valid and perfected security interest or lien) at any
     time and for any reason.

     INSOLVENCY. The dissolution or termination of Grantor's existence as a
     going business, the insolvency of Grantor, the appointment of a receiver
     for any part of Grantor's property, any assignment for the benefit of
     creditors, any type of creditor workout, or the commencement of any
     proceeding under any bankruptcy or insolvency laws by or against Grantor.

     CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
     forfeiture proceedings, whether by judicial proceeding, self-help,
     repossession or any other method, by any creditor of Grantor or by any
     governmental agency against any collateral securing the Indebtedness. This
     includes a garnishment of any of Grantor's accounts, including deposit
     accounts, with Lender. However, this Event of Default shall not apply if
     there is a good faith dispute by Grantor as to the validity or
     reasonableness of the claim which is the basis of the creditor or
     forfeiture proceeding and if Grantor gives Lender written notice of the
     creditor or forfeiture proceeding and deposits with Lender monies or a
     surety bond for the creditor or forfeiture proceeding, in an amount
     determined by Lender, in its sole discretion, as being an adequate reserve
     or bond for the dispute.

     EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with respect
     to guarantor, endorser, surety, or accommodation party of any of the
     Indebtedness or guarantor, endorser, surety, or accommodation party dies or
     becomes incompetent or revokes or disputes the validity of, or liability
     under, any Guaranty of the Indebtedness.

     ADVERSE CHANGE. A material adverse change occurs in Grantor's financial
     condition, or Lender believes the prospect of payment or performance of the
     Indebtedness is impaired.

     INSECURITY. Lender in good faith believes itself insecure.

     CURE PROVISIONS. If any default, other than a default in payment is curable
     and if Grantor has not been given a notice of a breach of the same
     provision of this Agreement within the preceding twelve (12) months, it may
     be cured (and no event of default will have occurred) if Grantor, after
     receiving written notice from Lender demanding cure of such default: (1)
     cures the default within fifteen (15) days; or (2) if the cure requires
     more than fifteen (15) days, immediately initiates steps which Lender deems
     in Lender's sole discretion to be sufficient to cure the default and
     thereafter continues and completes all reasonable and necessary steps
     sufficient to produce compliance as soon as reasonably practical.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a secured
party under the Minnesota Uniform Commercial Code. In addition and without
limitation, Lender may exercise anyone or more of the following rights and
remedies:

     ACCELERATE INDEBTEDNESS. Lender may declare the entire Indebtedness,
     including any prepayment penalty which Grantor would be required to pay,
     immediately due and payable, without notice of any kind to Grantor.

     ASSEMBLE COLLATERAL. Lender may require Grantor to deliver to Lender all or
     any portion of the Collateral and any and all certificates of title and
     other documents relating to the Collateral. Lender may require Grantor to
     assemble the Collateral and make it available to Lender at a place to be
     designated by Lender. Lender also shall have full power to enter upon the
     property of Grantor to take possession of and remove the Collateral. If the
     Collateral contains other goods not covered by this Agreement at the time
     of repossession, Grantor agrees Lender may take such other goods, provided
     that Lender makes reasonable efforts to return them to Grantor after
     repossession.

     SELL THE COLLATERAL. Lender shall have full power to sell, lease, transfer,
     or otherwise deal with the Collateral or proceeds thereof in Lender's own
     name or that of Grantor. Lender may sell the Collateral at public auction
     or private sale. Unless the Collateral threatens to decline speedily in
     value or is of a type customarily sold on a recognized market, Lender will
     give Grantor, and other persons as required by law, reasonable notice of
     the time and place of any public sale, or the time after which any private
     sale or any other disposition of the Collateral is to be made. However, no
     notice need be provided to any person who, after Event of Default occurs,
     enters into and authenticates an agreement waiving that person's right to
     notification of sale. The requirements of reasonable notice shall be met if
     such notice is given at least ten (10) days before the time of the sale or
     disposition. All expenses relating to the disposition of the Collateral,
     including without limitation the expenses of retaking, holding, insuring,
     preparing for sale and selling the Collateral, shall become a part of the
     Indebtedness secured by this Agreement and shall be payable on demand, with
     interest at the Note rate from date of expenditure until repaid.

     APPOINT RECEIVER. Lender shall have the right to have a receiver appointed
     to take possession of all or any part of the Collateral, with the power to
     protect and preserve the Collateral, to operate the Collateral preceding
     foreclosure or sale, and to collect the Rents from the Collateral and apply
     the proceeds, over and above the cost of the receivership, against the
     Indebtedness. The receiver may serve without bond if permitted by law.
     Lenders right to the appointment of a receiver shall exist whether or not
     the apparent value of the Collateral exceeds the Indebtedness by a
     substantial amount. Employment by Lender shall not disqualify a person from
     serving as a receiver.

     COLLECT REVENUES, APPLY ACCOUNTS. Lender, either itself or through a
     receiver, may collect the payments, rents, income, and revenues from the
     Collateral. Lender may at any time in Lender's discretion transfer any
     Collateral into Lender's own name or that of Lender's nominee and receive
     the payments, rents, income, and revenues therefrom and hold the same as
     security for the Indebtedness or apply it to payment of the Indebtedness in
     such order of preference as Lender may determine. Insofar as the Collateral
     consists of accounts, general intangibles, insurance policies, instruments,
     chattel paper, choses in action, or similar property, Lender may demand,
     collect, receipt for, settle, compromise, adjust, sue for, foreclose, or
     realize on the Collateral as Lender may determine, whether or not
     Indebtedness or Collateral is then due. For these purposes, Lender may, on
     behalf of and in the name of Grantor, receive, open and dispose of mail
     addressed to Grantor; change any address to which mail and payments are to
     be sent; and endorse notes, checks, drafts, money orders, documents of
     title, instruments and items pertaining to payment, shipment, or storage of
     any Collateral. To facilitate collection, Lender may notify account debtors
     and obligors on any Collateral to make payments directly to Lender.

<PAGE>

     OBTAIN DEFICIENCY. If Lender chooses to sell any or all of the Collateral,
     Lender may obtain a judgment against Grantor for any deficiency remaining
     on the Indebtedness due to Lender after application of all amounts received
     from the exercise of the rights provided in this Agreement. Grantor shall
     be liable for a deficiency even if the transaction described in this
     subsection is a sale of accounts or chattel paper.

     OTHER RIGHTS AND REMEDIES. Lender shall have all the rights and remedies of
     a secured creditor under the provisions of the Uniform Commercial Code, as
     may be amended from time to time. In addition, Lender shall have and may
     exercise any or all other rights and remedies it may have available at law,
     in equity, or otherwise.

     ELECTION OF REMEDIES. Except as may be prohibited by applicable law, all of
     Lender's rights and remedies, whether evidenced by this Agreement, the
     Related Documents, or by any other writing, shall be cumulative and may be
     exercised singularly or concurrently. Election by Lender to pursue any
     remedy shall not exclude pursuit of any other remedy, and an election to
     make expenditures or to take action to perform an obligation of Grantor
     under this Agreement, after Grantor's failure to perform, shall not affect
     Lender's right to declare a default and exercise its remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:

     AMENDMENTS. This Agreement, together with any Related Documents,
     constitutes the entire understanding and agreement of the parties as to the
     matters set forth in this Agreement. No alteration of or amendment to this
     Agreement shall be effective unless given in writing and signed by the
     party or parties sought to be charged or bound by the alteration or
     amendment.

     ATTORNEYS' FEES: EXPENSES. Grantor agrees to pay upon demand all of
     Lender's costs and expenses, including Lender's reasonable attorneys' fees
     and Lender's legal expenses, incurred in connection with the enforcement of
     this Agreement. Lender may hire or pay someone else to help enforce this
     Agreement, and Grantor shall pay the costs and expenses of such
     enforcement. Costs and expenses include Lender's reasonable attorneys' fees
     and legal expenses whether or not there is a lawsuit, including reasonable
     attorneys' fees and legal expenses for bankruptcy proceedings including
     efforts to modify or vacate any automatic stay or injunction), appeals, and
     any anticipated post-judgment collection services. Grantor also shall pay
     all court costs and such additional fees as may be directed by the court.

     CAPTION HEADINGS. Caption headings in this Agreement are for convenience
     purposes only and are not to be used to interpret or define the provisions
     of this Agreement.

     GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY, CONSTRUED AND ENFORCED
     IN ACCORDANCE WITH FEDERAL LAW AND THE LAWS OF THE STATE OF MINNESOTA. THIS
     AGREEMENT HAS BEEN ACCEPTED BY LENDER IN THE STATE OF MINNESOTA.

     CHOICE OF VENUE. If there is a lawsuit, Grantor agrees upon Lender's
     request to submit to the jurisdiction of the courts of Crow Wing County,
     State of Minnesota.

     NO WAIVER BY LENDER. Lender shall not be deemed to have waived any rights
     under this Agreement unless such waiver is given in writing and signed by
     Lender. No delay or omission on the part of Lender in exercising any right
     shall operate as a waiver of such right or any other right. A waiver by
     Lender of a provision of this Agreement shall not prejudice or constitute a
     waiver of Lender's right otherwise to demand strict compliance with that
     provision or any other provision of this Agreement. No prior waiver by
     Lender, nor any course of dealing between Lender and Grantor, shall
     constitute a waiver of any of Lender's rights or of any of Grantor's
     obligations as to any future transactions. Whenever the consent of Lender
     is required under this Agreement, the granting of such consent by Lender in
     any instance shall not constitute continuing consent to subsequent
     instances where such consent is required and in all cases such consent may
     be granted or withheld in the sole discretion of Lender.

     NOTICES. Any notice required to be given under this Agreement shall be
     given in writing, and shall be effective when actually delivered, when
     actually received by telefacsimile (unless otherwise required by law), when
     deposited with a nationally recognized overnight courier, or, if mailed,
     when deposited in the United States mail, as first class, certified or
     registered mail postage prepaid, directed to the addresses shown near the
     beginning of this Agreement. Any party may change its address for notices
     under this Agreement by giving formal written notice to the other parties,
     specifying that the purpose of the notice is to change the party's address.
     For notice purposes, Grantor agrees to keep Lender informed at all times of
     Grantor's current address. Unless otherwise provided or required by law, if
     there is more than one Grantor, any notice given by Lender to any Grantor
     is deemed to be notice given to all Grantors.

     POWER OF ATTORNEY. Grantor hereby appoints Lender as Grantor's irrevocable
     attorney-in-fact for the purpose of executing any documents necessary to
     perfect, amend, or to continue the security interest granted in this
     Agreement or to demand termination of filings of other secured parties.
     Lender may at any time, and without further authorization from Grantor,
     file a carbon, photographic or other reproduction of any financing
     statement or of this Agreement for use as a financing statement. Grantor
     will reimburse Lender for all expenses for the perfection and the
     continuation of the perfection of Lender's security interest in the
     Collateral.

     SEVERABILITY. If a court of competent jurisdiction finds any provision of
     this Agreement to be illegal, invalid, or unenforceable as to any
     circumstance, that finding shall not make the offending provision illegal,
     invalid, or unenforceable as to any other circumstance. If feasible, the
     offending provision shall be considered modified so that it becomes legal,
     valid and enforceable. If the offending provision cannot be so modified, it
     shall be considered deleted from this Agreement. Unless otherwise required
     by law, the illegality, invalidity, or unenforceability of any provision of
     this Agreement shall not affect the legality, validity or enforceability of
     any other provision of this Agreement.

     SUCCESSORS AND ASSIGNS. Subject to any limitations stated in this Agreement
     on transfer of Grantor's interest, this Agreement shall be binding upon and
     inure to the benefit of the parties, their successors and assigns. If
     ownership of the Collateral becomes vested in a person other than Grantor,
     Lender, without notice to Grantor, may deal with Grantor's successors with
     reference to this Agreement and the Indebtedness by way of forbearance or
     extension without releasing Grantor from the obligations of this Agreement
     or liability under the Indebtedness.

     SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All representations,
     warranties, and agreements made by Grantor in this Agreement shall survive
     the execution and delivery of this Agreement, shall be continuing in
     nature, and shall remain in full force and effect until such time as
     Grantor's Indebtedness shall be paid in full.

<PAGE>

     TIME IS OF THE ESSENCE. Time is of the essence in the performance of this
     Agreement.

DEFINITIONS. The following capitalized words and terms shall have the following
meanings when used in this Agreement. Unless specifically stated to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code:

     AGREEMENT. The word" Agreement" means this Commercial Security Agreement,
     as this Commercial Security Agreement may be amended or modified from time
     to time, together with all exhibits and schedules attached to this
     Commercial Security Agreement from time to time.

     BORROWER. The word "Borrower" means BRAINERD INTERNATIONAL RACEWAY &
     RESORT, INC. and includes all co-signers and co-makers signing the Note.

     COLLATERAL. The word "Collateral" means all of Grantor's right, title and
     interest in and to all the Collateral as described in the Collateral
     Description section of this Agreement.

     DEFAULT. The word "Default" means the Default set forth in this Agreement
     in the section titled "Default".

     ENVIRONMENTAL LAWS. The words "Environmental Laws" mean any and all state,
     federal and local statutes, regulations and ordinances relating to the
     protection of human health or the environment, including without limitation
     the Comprehensive Environmental Response, Compensation, and Liability Act
     of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the
     Superfund Amendments and Reauthorization Act of 1986, Pub. L. No. 99-499
     ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C. Section
     1801, et seq., the Resource Conservation and Rec01ery Act, 42 U.S.C.
     Section 6901, et seq., or other applicable state or federal laws, rules, or
     regulations adopted pursuant thereto or common law, and shall also include
     pollutants, contaminants, polychlorinated biphenyls, asbestos, urea
     formaldehyde, petroleum and petroleum products, and agricultural chemicals.

     EVENT OF DEFAULT. The words "Event of Default" mean any of the events of
     default set forth in this Agreement in the default section of this
     Agreement.

     GRANTOR. The word "Grantor" means BRAINERD INTERNATIONAL RACEWAY & RESORT,
     INC.

     GUARANTY. The word "Guaranty" means the guaranty from guarantor, endorser,
     surety, or accommodation party to Lender, including without limitation a
     guaranty of all or part of the Note.

     HAZARDOUS SUBSTANCES. The words "Hazardous Substances" mean materials that,
     because of their quantity, concentration or physical, chemical or
     infectious characteristics, may cause or pose a present or potential hazard
     to human health or the environment when improperly used, treated, stored,
     disposed of, generated, manufactured, transported or otherwise handled. The
     words "Hazardous Substances" are used in their very broadest sense and
     include without limitation any and all hazardous or toxic substances,
     materials or waste as defined by or listed under the Environmental laws.
     The term "Hazardous Substances" also includes, without limitation,
     petroleum and petroleum by-products or any fraction thereof and asbestos.

     INDEBTEDNESS. The word "Indebtedness" means the indebtedness evidenced by
     the Note or Related Documents, including all principal and interest
     together with all other indebtedness and costs and expenses for which
     Grantor is responsible under this Agreement or under any of the Related
     Documents.

     LENDER. The word "Lender" means First National Bank of Deerwood, its
     successors and assigns.

     NOTE. The word "Note" means the Note executed by BRAINERD INTERNATIONAL
     RACEWAY & RESORT, INC. in the principal amount of $500,000.00 dated October
     31, 2003, together with all renewals of, extensions of, modifications of,
     refinancings of, consolidations of, and substitutions for the note or
     credit agreement.

     PROPERTY. The word "Property" means all of Grantor's right, title and
     interest in and to all the Property as described in the "Collateral
     Description" section of this Agreement.

     RELATED DOCUMENTS. The words "Related Documents" mean all promissory notes,
     credit agreements, loan agreements, environmental agreements, guaranties,
     security agreements, mortgages, deeds of trust, security deeds, collateral
     mortgages, and all other instruments, agreements and documents, whether now
     or hereafter existing, executed in connection with the Indebtedness.

<PAGE>

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY
AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED OCTOBER 31, 2003.

GRANTOR:

BRAINERD INTERNATIONAL RACEWAY & RESORT. INC.

BY: COPY
    -------------------------------------------
     BILL  SINGLETERRY, PRESIDENT OF BRAINERD
         INTERNATIONAL RACEWAY & RESORT, INC.

<PAGE>

                         AGREEMENT TO PROVIDE INSURANCE

<TABLE>
<CAPTION>
PRINCIPAL    LOAN DATE   MATURITY    LOAN NO    CALL/COLL  ACCOUNT  OFFICER  INITIALS
<S>          <C>         <C>         <C>        <C>        <C>      <C>      <C>
$500,000.00  10-31-2003  10-30-2008  300146144                        BLH
</TABLE>

  References in the shaded area are for Lender's use only and do not limit the
  applicability of this document to any particular loan or item. Any item above
       containing" * * *" has been omitted due to text length limitations.

<TABLE>
<S>                                                      <C>
BORROWER: BRAINERD INTERNATIONAL RACEWAY & RESORT, INC.  LENDER:  FIRST NATIONAL BANK OF DEERWOOD
          (TIN: 41-1824127                                        BRAINERD BRANCH
          5523 BIRCHDALE  RD                                      PO BOX 527
          BRAINERD, MN 56401                                      724 W WASHINGTON ST BRAINERD, MN
                                                                  56401-0527 (218) 828.2111
</TABLE>

INSURANCE REQUIREMENTS. Grantor, BRAINERD INTERNATIONAL RACEWAY & RESORT, INC.
("Grantor"). understands that insurance coverage is required in connection with
the extending of a loan or the providing of other financial accommodations to
Grantor by Lender. These requirements are set forth in the security documents
for the loan. The following minimum insurance coverages must be provided on the
following described collateral (the "Collateral"):

     COLLATERAL:    ALL EQUIPMENT.
                    TYPE: All risks, including fire, theft and liability.
                    AMOUNT: Full Insurable Value.
                    BASIS: Replacement value.
                    ENDORSEMENTS: Lender loss payable clause with stipulation
                    that coverage will not be cancelled or diminished without a
                    minimum of 30 days prior written notice to Lender.
                    LATEST DELIVERY DATE: By the loan closing date.

     COLLATERAL:    5523 BIRCHDALE RD, BRAINERD, MN 56401.
                    TYPE: Fire and extended coverage.
                    AMOUNT: Full Insurable Value.
                    BASIS: Replacement value.
                    ENDORSEMENTS: Standard mortgagee's clause with stipulation
                    that coverage will not be cancelled or diminished without a
                    minimum of 30 days prior written notice to Lender, and
                    without disclaimer of the insurer's liability for failure to
                    give such notice to Lender.
                    LATEST DELIVERY DATE: By the loan closing date.

INSURANCE COMPANY. Grantor may obtain insurance from any insurance company
Grantor may choose that is reasonably acceptable to Lender. Grantor understands
that credit may not be denied solely because insurance was not purchased through
Lender.

FLOOD INSURANCE. Flood Insurance for the Collateral securing this loan is
described as follows:

     REAL ESTATE AT 5523 BIRCH DALE RD, BRAINERD, MN 56401.

     Should the Collateral at any time be deemed to be located in an area
     designated by the Director of the Federal Emergency Management Agency as a
     special flood hazard area, Grantor agrees to obtain and maintain Federal
     Flood Insurance, if available, within 45 days after notice is given by
     Lender that the Collateral is located in a special flood hazard area, for
     the full unpaid balance of the loan and any prior liens on the property
     securing the loan, up to the maximum policy limits set under the National
     Flood Insurance Program, or as otherwise required by Lender, and to
     maintain such insurance for the term of the loan. Flood insurance may be
     purchased under the National Flood Insurance Program or from private
     insurers.

FAILURE PROVIDE INSURANCE. Grantor agrees to deliver to Lender, on the latest
delivery date stated above, proof of the required insurance as provided above,
with an effective date of October 31,2003, or earlier. Grantor acknowledges and
agrees that if Grantor fails to provide any required insurance or fails to
continue such insurance in force, Lender may do so at Grantor's expense as
provided in the applicable security document. The cost of any such insurance, at
the option of Lender, shall be added to the indebtedness as provided in the
security document. GRANTOR ACKNOWLEDGES THAT IF LENDER SO PURCHASES ANY SUCH
INSURANCE, THE INSURANCE Will PROVIDE LIMITED PROTECTION AGAINST PHYSICAL DAMAGE
TO THE COLLATERAL, UP TO AN AMOUNT EQUAL TO THE LESSER OF (1) THE UNPAID BALANCE
OF THE DEBT, EXCLUDING ANY UNEARNED FINANCE CHARGES, OR (2) THE VALUE OF THE
COLLATERAL; HOWEVER, GRANTOR'S EQUITY IN THE COLLATERAL MAY NOT BE INSURED. IN
ADDITION, THE INSURANCE MAY NOT PROVIDE ANY PUBLIC LIABILITY OR PROPERTY DAMAGE
INDEMNIFICATION AND MAY NOT MEET THE REQUIREMENTS OF ANY FINANCIAL
RESPONSIBILITY LAWS.

AUTHORIZATION. For purposes of insurance coverage on the Collateral, Grantor
authorizes Lender to provide to any person (including any insurance agent or
company) all information Lender deems appropriate, whether regarding the
Collateral, the loan or other financial accommodations, or both.

<PAGE>

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS AGREEMENT TO PROVIDE
INSURANCE AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED OCTOBER 31. 2003.

GRANTOR:

BRAINERD INTERNATIONAL RACEWAY & RESORT. INC.

BY: COPY
    ---------------------------------------
     BILL SINGLETERRY, PRESIDENT OF BRAINERD
     INTERNATIONAL RACEWAY & RESORT. INC.

                               FOR LENDER USE ONLY
                             INSURANCE VERIFICATION

DATE: ________________________                  PHONE  _________________________

AGENT'S NAME: _________________________________
AGENCY: _______________________________________
INSURANCE COMPANY: ____________________________
POLICY NUMBER:
EFFECTIVE DATES: _______________________________________________________________

COMMENTS: ______________________________________________________________________

<PAGE>

                    DISBURSEMENT REQUEST AND AUTHORIZATION

<TABLE>
<CAPTION>
PRINCIPAL    LOAN DATE   MATURITY    LOAN NO    CALL/COLL  ACCOUNT  OFFICER  INITIALS
<S>          <C>         <C>         <C>        <C>        <C>      <C>      <C>
$500,000.00  10-31-2003  10-30-2008  300146144                        BLH
</TABLE>

  References in the shaded area are for Lender's use only and do not limit the
  applicability of this document to any particular loan or item. Any item above
       containing" * * *" has been omitted due to text length limitations.

<TABLE>
<S>                                                      <C>
BORROWER: BRAINERD INTERNATIONAL RACEWAY & RESORT, INC.  LENDER: FIRST NATIONAL BANK OF DEERWOOD
          (TIN: 41-1824127                                       BRAINERD BRANCH
          5523 BIRCHDALE  RD                                     PO BOX 527
          BRAINERD, MN 56401                                     724 W WASHINGTON ST BRAINERD, MN
                                                                 56401-0527 (218) 828.2111
</TABLE>

LOAN TYPE. This is a Variable Rate Nondisclosable loan to a Corporation for
$500,000.00 due on October 30, 2008. The reference rate (Wall Street Journal
Prime Rate, currently 4.000%) is added to the margin of 2.500%. resulting in an
initial rate of 6.500. This is a secured renewal loan.

PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for:

     ( )  Maintenance of Borrower's Primary Residence.

     ( )  Personal. Family or Household Purposes or Personal Investment.

     ( )  Agricultural Purposes.

     (X)  Business Purposes.

SPECIFIC PURPOSE. The specific purpose of this loan is: TO EXTEND LOAN
#300146144.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be
disbursed until all of Lender's conditions for making the loan have been
satisfied. Please disburse the loan proceeds of $500,000.00 as follows:

<TABLE>
<S>                                                                             <C>
                OTHER DISBURSEMENTS:                                            $500.000.00
                      $500.000.00 TO EXTEND LOAN #300146144
                                                                                -----------
                 NOTE PRINCIPAL:                                                $500.000.00

CHARGES PAID IN CASH. Borrower has paid or will pay in cash as agreed the following charges:

      PREPAID FINANCE CHARGES PAID IN CASH:                                     $      0.00
      OTHER CHARGES PAID IN CASH:                                               $  4.320.84
         $1.530.00 ABSTRACT AND TITLE FEE TO CROW WING COUNTY ABSTRACT
         $20.00 MORTGAGE EXTENSION FEE TO CROW WING COUNTY RECORDER
         $1.770.84 INTEREST FOR LOAN 300146144
         $1,000.00 LOAN DOCUMENTATION FEE
                                                                                -----------
      TOTAL CHARGES PAID IN CASH:                                               $  4.320.84
</TABLE>

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION. BORROWER REPRESENTS AND
WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND
THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION
AS DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS
AUTHORIZATION IS DATED OCTOBER 31. 2003.

<PAGE>

BORROWER:

BRAINERD INTERNATIONAL RACEWAY & RESORT. INC.

BY: COPY
    ----------------------------------------
    BILL SINGLETERRY, PRESIDENT OF BRAINERD
    INTERNATIONAL RACEWAY & RESORT. INC.<PAGE>

                                                                   EXHIBIT 10.23

                                                                  EXECUTION COPY

                       THIRD AMENDMENT TO CREDIT AGREEMENT

         THIS THIRD AMENDMENT TO CREDIT AGREEMENT, dated as of January 30, 2004
and effective as of the Amendment Date (as defined below) (this "Amendment"), is
by and among ASSET ACCEPTANCE, LLC, a Delaware limited liability company,
FINANCIAL CREDIT, LLC, a Delaware limited liability company, CFC FINANCIAL, LLC,
a Delaware limited liability company, and CONSUMER CREDIT, LLC, a Delaware
limited liability company, and MED-FI ACCEPTANCE, LLC, a Delaware limited
liability company (collectively, the "Borrowers" and, individually, a
"Borrower"), BANK ONE, NA, a national banking association with its main office
in Chicago, Illinois ("Bank One"), STANDARD FEDERAL BANK, NA, a national banking
association, NATIONAL CITY BANK OF MICHIGAN/ILLINOIS, a national banking
association, FIFTH THIRD BANK, EASTERN MICHIGAN, a Michigan banking corporation,
and COMERICA BANK, a Michigan banking corporation (together with Bank One,
collectively, the "Banks" and, individually, a "Bank"), and BANK ONE, NA, as LC
Issuer and administrative agent on behalf of the Banks (in such capacity, the
"Agent").

                                  INTRODUCTION

                  A. The Borrowers, the Banks and the Agent have entered into
the Credit Agreement, dated as of September 30, 2002, as amended by the First
Amendment to Credit Agreement, dated as of June 25, 2003, and the Second
Amendment to Credit Agreement, dated as of August 11, 2003 (the "Credit
Agreement"), pursuant to which the Banks provide to the Borrowers a revolving
credit facility in the aggregate principal amount of $100,000,000.

                  B. In connection with the Offering (as defined below), the
shareholders of AAC Investors, Inc. and RBR Holding Corp. (formerly AAC Holding
Corp.) have contributed to Asset Acceptance Capital Corp., a Delaware
corporation ("AACC"), all of the shares of capital stock in AAC Investors, Inc.
and RBR Holding Corp., in exchange for shares of common stock of AACC, which is
the class of common stock to be offered pursuant to the Offering. AAC Investors,
Inc. and RBR Holding Corp. hold 60% and 40%, respectively, of the equity
membership interests in Asset Acceptance Holdings LLC, a Delaware limited
liability company ("Holdings"), which is the holder of all the membership
interests in the Borrowers and is a Guarantor under the Credit Agreement. As a
result of such transaction (the "Reorganization") and the Offering, Holdings and
the Borrowers will become indirect wholly-owned subsidiaries of AACC, a
corporation subject to the reporting requirements of the Securities and Exchange
Act of 1934. The "Offering" means the initial public offering of AACC
substantially in accordance with the Form S-1 Registration Statement of AACC
initially filed with the Securities and Exchange Commission on October 24, 2003,
as amended by amendment filed with the Securities and Exchange Commission on
December 24, 2003 (the "Form S-1"), copies of which registration statement and
amendment in the forms so filed have been provided to the Agent.

                  C. In contemplation of consummating the Offering, the
Borrowers have requested that the Credit Agreement be modified in certain
respects, and the Banks and the Agent are willing to so modify the Credit
Agreement on the terms and conditions herein set forth.

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

<PAGE>

                    ARTICLE 1. AMENDMENTS TO CREDIT AGREEMENT

                  Effective upon the date the conditions precedent set forth in
Article 2 of this Amendment are satisfied, which date (the "Amendment Date")
shall be determined by the Agent in its sole discretion, the Credit Agreement
hereby is amended as follows:

                  1.1 The following definition of the term "AACC" is added to
Section 1.1 in alphabetical order:

                           "AACC" means Asset Acceptance Capital Corp., a
         Delaware corporation.

                  1.2 The following definition of the term "Applicable Fee Rate"
is added to Section 1.1 in alphabetical order:

                           "Applicable Fee Rate" means, at any time, the
         percentage rate per annum at which commitment fees are accruing under
         Section 2.3(a) at such time as set forth in the Pricing Schedule.

                  1.3 The definition of the term "Applicable Margin" in Section
1.1 is amended and restated in full as follows:

                           "Applicable Margin" means, with respect to Borrowings
         and Loans of any Type at any time, the percentage rate per annum which
         is applicable at such time with respect to Borrowings and Loans of such
         Type as set forth in the Pricing Schedule.

                  1.4 The following definition of the term "Borrowing Base
Condition" is added to Section 1.1 in alphabetical order:

                           "Borrowing Base Condition" shall mean the Leverage
         Ratio as of the end of any fiscal quarter or fiscal year of AACC
         exceeds 1.00 to 1.00.

                  1.5 The following definition of the term "Change in Control"
is added to Section 1.1 in alphabetical order:

                           "Change in Control" means all of the following shall
         have occurred: (i) the Acceptable Owners have beneficial ownership
         (within the meaning of Rule 13d-3 of the Securities and Exchange
         Commission under the Securities Exchange Act of 1934) of less than a
         majority of the outstanding shares of voting stock of AACC, (ii) any
         Person other than the Acceptable Owners, or two or more Persons other
         than the Acceptable Owners acting in concert, shall have acquired
         beneficial ownership (within the meaning of Rule 13d-3 of the
         Securities and Exchange Commission under the Securities Exchange Act of
         1934) of 25% or more of the outstanding shares of voting stock of AACC,
         and (iii) a majority of the Board of Directors of AACC being persons
         who are neither persons who were directors of AACC as of the Third
         Amendment Date (the "Existing Directors") nor director nominees
         expressly approved as such by the Existing Directors. As used herein,
         "Acceptable Owners" means Quad-C, the shareholders of RBR Holding Corp.
         as of the Third Amendment Date, and the respective Affiliates of Quad-C
         and such shareholders.

                                      -2-
<PAGE>

                  1.6 The definition of the term "Commitment" in Section 1.1 is
amended and restated in full as follows:

                           "Commitment" shall mean, with respect to each Bank,
         the commitment of each such Bank to make Loans to the Borrowers
         pursuant to Section 2.1 and participate in Facility LCs issued upon the
         application of Asset Acceptance in an aggregate amount outstanding at
         any time not exceeding the respective commitment amount for each such
         Bank set forth next to the name of each such Bank on the signature
         pages to the Third Amendment, as such amounts may be reduced from time
         to time pursuant to Section 2.2.

                  1.7 The definition of the term "Companies" in Section 1.1 is
deleted.

                  1.8 The following definition of the term "Domestic Subsidiary"
is added to Section 1.1 in alphabetical order:

                           "Domestic Subsidiary" shall mean, with respect to any
         Person, any Subsidiary of such Person that is not a Foreign Subsidiary.

                  1.9 The following definition of the term "Foreign Subsidiary"
is added to Section 1.1 in alphabetical order:

                           "Foreign Subsidiary" shall mean, with respect to any
         Person, any Subsidiary of such Person incorporated or formed in any
         jurisdiction other than the United States of America or any State
         thereof.

                  1.10 The definition of the term "Guarantors" in Section 1.1 is
amended and restated in full as follows:

                           "Guarantors" shall mean AACC and each of the direct
         and indirect Domestic Subsidiaries of AACC from time to time, other
         than the Borrowers.

                  1.11 The following definition of the term "Leverage Ratio" is
added to Section 1.1 in alphabetical order:

                           "Leverage Ratio" means, as of the end of any fiscal
         quarter or fiscal year of AACC, the ratio of the Consolidated Total
         Liabilities of AACC and its Subsidiaries as of such fiscal quarter end
         or fiscal year end, as the case may be, to the Consolidated Adjusted
         EBITDA of AACC and its Subsidiaries for the period of four consecutive
         fiscal quarters of AACC ending with such fiscal quarter end or fiscal
         year end, as the case may be.

                  1.12 The following definition of the term "Offering" is added
to Section 1.1 in alphabetical order:

                           "Offering" means the initial public offering of AACC
         substantially in accordance with the Form S-1.

                                      -3-
<PAGE>

                  1.13 The definition of the term "Overdue Rate" in Section 1.1
is amended and restated in full as follows:

                           "Overdue Rate" shall mean (a) in respect of principal
         of Floating Rate Loans, a rate per annum that is equal to the sum of
         two percent (2%) per annum plus the Floating Rate, (b) in respect of
         principal of Eurodollar Loans, a rate per annum that is equal to the
         sum of two percent (2%) per annum plus the per annum rate in effect
         thereon until the end of the then current Interest Period for such
         Eurodollar Loan and, thereafter, a rate per annum that is equal to the
         sum of two percent (2%) per annum plus the Floating Rate, and (c) in
         respect of other amounts payable by the Borrower hereunder (other than
         interest), a per annum rate that is equal to the sum of two percent
         (2%) per annum plus the Floating Rate.

                  1.14 The following definition of the term "Pledge Agreement"
is added to Section 1.1 in alphabetical order:

                           "Pledge Agreement" shall mean any pledge agreement
         entered into by any Borrower or Guarantor in favor of the Agent for the
         benefit of the Banks and the Agent pursuant to this Agreement in
         substantially the form of annexed hereto as Exhibit H, as amended or
         modified from time to time.

                  1.15 The following definition of the term "Pricing Schedule"
is added to Section 1.1 in alphabetical order:

                           "Pricing Schedule" means the Schedule attached hereto
         identified as such.

                  1.16 The definitions of the terms "Rate Management
Obligations" and "Rate Management Transaction" in Section 1.1 are amended and
restated in full, respectively, as follows:

                           "Rate Management Obligations" shall mean any and all
         obligations of any of the Borrowers or the Guarantors, whether absolute
         or contingent and howsoever and whensoever created, arising, evidenced
         or acquired (including all renewals, extensions and modifications
         thereof and substitutions therefor), under (i) any and all Rate
         Management Transactions, and (ii) any and all cancellations, buy backs,
         reversals, terminations or assignments of any Rate Management
         Transactions.

                           "Rate Management Transaction" shall mean any
         transaction (including an agreement with respect thereto) now existing
         or hereafter entered into among any of the Borrowers or the Guarantors
         and any of the Banks, Bank One Corporation, or any of the Banks'
         respective subsidiaries or affiliates or their successors, which is a
         rate swap, basis swap, forward rate transaction, commodity swap,
         commodity option, equity or equity index swap, equity or equity index
         option, bond option, interest rate option, foreign exchange
         transaction, cap transaction, floor transaction, collar transaction,
         forward transaction, currency swap transaction, cross-currency rate
         swap transaction, currency option or any other similar transaction
         (including any option with respect to any of these transactions) or any
         combination thereof, whether linked to one or more interest rates,
         foreign currencies, commodity prices, equity prices or other financial
         measures.

                                      -4-
<PAGE>

                  1.17 The definition of the term "Security Documents" in
Section 1.1 is amended and restated in full as follows:

                           "Security Documents" shall mean, collectively, the
         Guaranties, the Pledge Agreements, the Security Agreements, any and all
         subordination agreements with respect to Subordinated Debt, and all
         other agreements and documents, including financing statements and
         similar documents, delivered pursuant to this Agreement or otherwise
         entered into by any person to secure the Loans.

                  1.18 The following definitions of the terms "Significant
Guarantor" and "Tax Distribution", respectively, are added to Section 1.1 in
alphabetical order:

                           "Significant Guarantor" shall mean, at any date of
         determination, (a) AACC, (b) any other Guarantor that owns, directly or
         indirectly, any of the capital stock, membership interests or other
         equity interests of any of the Borrowers, and (c) any Domestic
         Subsidiary of any of the Borrowers that, together with the Subsidiaries
         of such Subsidiary, (i) for the period of the then most recently
         completed four consecutive fiscal quarters of AACC, accounted for more
         than 5% of the consolidated EBITDA of AACC and its Domestic
         Subsidiaries, or (ii) as of such date of determination, is the owner of
         more than 5% of the consolidated assets of AACC and its Domestic
         Subsidiaries.

                           "Tax Distribution" shall mean the distribution to
         Holdings by the Borrowers in an aggregate amount of not to exceed
         $4,500,000, the entire proceeds of which distribution Holdings
         immediately will use to make a tax distribution to RBR Holding Corp.

                  1.19 The definition of the term "Termination Date" in Section
1.1 is amended and restated in full as follows:

                           "Termination Date" shall mean the earlier to occur of
         (a) May 31, 2007, and (b) the date on which the Commitments shall be
         terminated pursuant to Section 2.2 or 6.2.

                  1.20 The following definitions of the terms "Third Amendment"
and "Third Amendment Date", respectively, are added to Section 1.1 in
alphabetical order:

                           "Third Amendment" shall mean the Third Amendment to
         this Agreement, dated as of January 30, 2004.

                           "Third Amendment Date" shall mean the Amendment Date
         (as defined in the Third Amendment).

                  1.21 The second sentence of Section 2.1 is amended and
restated in full as follows:

         Notwithstanding anything in this Agreement to the contrary, (a) the
         Outstanding Credit Exposure of any Bank at any time shall not exceed
         the amount of its respective Commitment at such time, and (b) at no
         time after the Borrowing Base Condition occurs shall the aggregate
         Outstanding Credit Exposure of all the Banks exceed the amount of

                                      -5-
<PAGE>

         the Borrowing Base as of the close of business on the last day of the
         month immediately preceding the day of determination of such aggregate
         Outstanding Credit Exposure.

                  1.22 Section 2.3 is amended and restated in full as follows:

                  2.3 Fees.

                           (a) The Borrowers agree to pay to each Bank a
         commitment fee on the daily average unused amount of its respective
         Commitment, for the period from the Effective Date to but excluding the
         Termination Date, at a rate equal to the Applicable Fee Rate. Accrued
         commitment fees shall be payable quarterly in arrears on the last
         Business Day of each March, June, September and December, commencing on
         the first such Business Day occurring after the Effective Date, and on
         the Termination Date.

                           (b) The Borrowers further agree to pay to the Banks
         an upfront fee in the amount of $100,000 for the Third Amendment to
         this Agreement. Such upfront fee shall be payable on or prior to the
         Third Amendment Date, shall be shared among the Banks on a pro rata
         basis in accordance with their respective Commitments, shall be deemed
         earned upon receipt, and shall be nonrefundable.

                           (c) The Borrowers further agree to pay to the Agent
         agency fees for its services as Agent under this Agreement, the Notes
         and the Security Documents and an arrangement fee for this Agreement
         and any amendments to this Agreement in such amounts and on such
         schedule as may from time to time be agreed upon by the Borrowers and
         the Agent.

                  1.23 The following sentence is added to the end of
subparagraph (c) of Section 2.6:

         Notwithstanding anything to the contrary, the requirements of this
         Section 2.6(c) shall not be in effect prior to the occurrence of the
         Borrowing Base Condition but shall be in effect at all times after the
         Borrowing Base Condition occurs.

                  1.24 Section 2.7 is amended and restated in full as follows:

                  2.7 Security and Collateral. To secure the payment when due of
         the Notes and all other obligations of the Borrowers under this
         Agreement to the Banks and the Agent, the Borrowers shall execute and
         deliver on or prior to the Third Amendment Date, or cause to be so
         executed and delivered, to the Banks and the Agent, Security Documents
         granting the following:

                           (a) Security interests in all present and future
         accounts, inventory, general intangibles, chattel paper, instruments,
         equipment, fixtures, and all other personal property of the Borrowers
         and their respective Subsidiaries, including, without limitation,
         rights under each of the documents to which any Borrower is party
         effecting or implementing the Recapitalization.

                           (b) Guarantees of all Guarantors.

                                      -6-
<PAGE>

                           (c) Pledges of (i) all capital stock, membership
         interests and other equity interests in all direct and indirect
         Domestic Subsidiaries of AACC, including without limitation the
         Borrowers, and (ii) the capital stock, membership interests and other
         equity interests in any direct or indirect Foreign Subsidiaries of AACC
         owned by AACC or any Domestic Subsidiary of AACC, up to an amount in
         the case of each such Foreign Subsidiary not exceeding 65% of the total
         capital stock, membership interests and other equity interests in such
         Foreign Subsidiary.

                           (d) All other security and collateral described in
         the Security Documents.

                  1.25 Section 2.12.4 is amended and restated in full as
follows:

                           2.12.4. LC Fees. Asset Acceptance shall pay to the
         Agent, for the account of the Banks ratably in accordance with their
         respective Pro Rata Shares, with respect to each Facility LC, a letter
         of credit fee at a per annum rate equal to the Applicable Fee Rate in
         effect from time to time on the average daily undrawn stated amount
         under such standby Facility LC, such fee to be payable in arrears on
         the last day of each calendar quarter, (the "LC Fee"). Asset Acceptance
         shall also pay to the LC Issuer for its own account (a) at the time of
         issuance of each Facility LC, a fronting fee in the amount equal to
         .0125% of the face amount of each such Facility LC, and (b) documentary
         and processing charges in connection with the issuance or Modification
         of and draws under Facility LCs in accordance with the LC Issuer's
         standard schedule for such charges as in effect from time to time.
         Notwithstanding anything to the contrary, the LC Fee rate shall be
         increased by two percent (2%) per annum for any periods that the
         Overdue Rate is in effect with respect to Loans.

                  1.26 Subparagraph (c) of Section 3.1 is amended and restated
in full as follows:

                           (c) If (i) on any date prior to the occurrence of the
         Borrowing Base Condition, the Aggregate Outstanding Credit Exposure of
         all Banks shall exceed the Aggregate Commitment (including, without
         limitation, as a result of a reduction under Section 2.2), or (ii) on
         any date after the Borrowing Base Condition occurs, the Aggregate
         Outstanding Credit Exposure of all Banks shall exceed the lesser of (A)
         the Aggregate Commitment (including, without limitation, as a result of
         a reduction under Section 2.2), or (B) the amount of the Borrowing Base
         as of the date of the most recent Borrowing Base Certificate received
         by the Agent and the Banks, then in either of such cases the Borrowers
         shall forthwith pay to the Bank, subject to the payment of any funding
         indemnification amounts required by Section 3.7, an amount for
         application to the outstanding principal amount of the Loans, such that
         the aggregate amount of such payments is not less than the amount of
         such excess.

                  1.27 The words "Alternate Base Rate" are deleted from the
third sentence of Section 3.2, and the words "Prime Rate" are substituted in
place of such words.

                  1.28 Article IV is amended and restated in full as follows:

                                      -7-
<PAGE>

                                   ARTICLE IV.

                         REPRESENTATIONS AND WARRANTIES

                  The Borrowers represent and warrant to the Banks and the Agent
that:

                  4.1 Corporate or Limited Liability Company Existence and
         Power. Each of the Borrowers and the Guarantors and their respective
         Subsidiaries is a corporation or limited liability company, as the case
         may be, duly organized, validly existing and in good standing under the
         laws of its respective jurisdiction of organization, and is duly
         qualified to do business, and is in good standing, in all additional
         jurisdictions where such qualification is necessary under applicable
         law. Each of the Borrowers and the Guarantors and their respective
         Subsidiaries has all requisite corporate or limited liability company,
         as the case may be, 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 and the other Loan Documents.

                  4.2 Authority. The execution, delivery and performance by each
         of the Borrowers and the Guarantors of this Agreement, the Security
         Documents and the Notes to which each of them respectively is party
         have been duly authorized by all necessary company 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 Borrower's or
         Guarantor's, as the case may be, articles or certificate of
         incorporation, bylaws, articles or certificate of organization or
         formation, or operating agreement, as applicable, or of any contract or
         undertaking to which such Borrower or Guarantor is a party or by which
         such Borrower or Guarantor or its respective property may be bound or
         affected and will not result in the imposition of any Lien except for
         Permitted Liens.

                  4.3 Binding Effect. This Agreement, the Notes and each
         Security Document to which a Borrower or a Guarantor is a party from
         time to time delivered hereunder are legal, valid and binding
         obligations of each such Borrower and Guarantor, respectively,
         enforceable against each such Borrower and Guarantor, as the case may
         be, in accordance with their respective terms.

                  4.4 Subsidiaries. As of the Third Amendment Date, Schedule 4.4
         hereto correctly sets forth the name, jurisdiction of formation and
         ownership of each Subsidiary, direct or indirect, of AACC. Each such
         Subsidiary and each person becoming a Subsidiary of AACC after the
         Third Amendment Date is and will be a limited liability company,
         partnership or corporation duly organized, validly existing and in good
         standing under the laws of its jurisdiction of formation 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.
         Each Subsidiary of AACC has and will have all requisite 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
         shares of capital stock of each class or other ownership interests of
         each Subsidiary of AACC have been and will be validly issued and (to
         the extent such concepts are relevant with respect to such ownership
         interests) are and will be fully paid and nonassessable and, except as
         otherwise indicated in Schedule 4.4 hereto or disclosed in writing to
         the

                                      -8-
<PAGE>

         Banks from time to time, are and will be owned, beneficially and of
         record, by AACC or another Subsidiary of AACC free and clear of any
         Liens.

                  4.5 Litigation. There is no action, suit or proceeding pending
         or, to the best of any Borrower's or Guarantor's knowledge, threatened
         against or affecting any Borrower or Guarantor or Subsidiary of any
         Borrower or Guarantor before or by any court, governmental authority or
         arbitrator, which if adversely decided might result, either
         individually or collectively, in any material adverse change in the
         business, properties, operations or condition, financial or otherwise,
         of any Borrower or Guarantor or Subsidiary of any Borrower or Guarantor
         or in any material adverse effect on the legality, validity or
         enforceability of the Loan Documents and, to the best of any Borrower's
         or Guarantor's knowledge, there is no basis for any such action, suit
         or proceeding.

                  4.6 Financial Condition. The consolidated balance sheet of
         Holdings and its Subsidiaries and the consolidated statements of
         income, retained earnings and cash flows of Holdings and its
         Subsidiaries for the fiscal year ended December 31, 2002 and reported
         on by Ernst & Young LLP, independent certified public accountants, and
         the interim consolidated balance sheet and interim consolidated
         statements of income, retained earnings and cash flows of Holdings and
         its Subsidiaries, as of or for the nine-month period ended on September
         30, 2003, copies of which have been furnished to the Banks, fairly
         present, and the consolidated financial statements of Holdings and its
         Subsidiaries and AACC and its Subsidiaries delivered pursuant to
         Section 5.1(d) will fairly present, the consolidated financial position
         of Holdings and its Subsidiaries and AACC and its Subsidiaries, as the
         case may be, as at the respective dates thereof, and the consolidated
         results of operations of Holdings and its Subsidiaries and AACC and its
         Subsidiaries, as the case may be, for the respective periods indicated,
         all in accordance with generally accepted accounting principles
         consistently applied (subject, in the case of said interim statements,
         to year-end audit adjustments). The pro forma projected post-Offering
         opening balance sheet of AACC and its Subsidiaries provided to the
         Banks fairly presents the projected consolidated balance sheet of AACC
         and its Subsidiaries upon the consummation of the Offering on a fair
         valuation basis and based on reasonable assumptions and expectations.
         There has been no material adverse change in the business, properties,
         operations or condition, financial or otherwise, of the Borrowers or
         any of the Guarantors since December 31, 2002. As of the Third
         Amendment Date, there is no material Contingent Liability of any of the
         Borrowers or the Guarantors that is not reflected in such financial
         statements or in the notes thereto.

                  4.7 Use of Loans and Facility LCs. The Borrowers will use the
         proceeds of the Loans and the Facility LCs to finance the purchase of
         portfolios of charged-off Receivables and for general corporate
         purposes. None of the Borrowers or the Guarantors 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 Regulation U of the Board of Governors of the
         Federal Reserve System), and no part of the proceeds of any Loan nor
         any Facility LC 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. After
         applying the proceeds of each Loan and each Facility LC such margin
         stock will not constitute more than 25% of the value of the assets
         (either of any Borrower or Guarantor alone or of such Borrower or
         Guarantor, as the case may be, and its Subsidiaries on a

                                      -9-
<PAGE>

         consolidated basis) that are subject to any provisions of this
         Agreement that may cause the Loan or Facility LC to be deemed secured,
         directly or indirectly, by margin stock.

                  4.8 Consents, Etc. Except for such consents, approvals,
         authorizations, declarations, registrations or filings delivered by the
         Borrowers pursuant to Section 2.5(e) or the Third Amendment, 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 any
         Borrower or Guarantor, 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 the Loan
         Documents.

                  4.9 Taxes. As of the Third Amendment Date, the Borrowers, the
         Guarantors and each of their respective 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. None of the Borrowers, the Guarantors
         or any of their respective Subsidiaries knows 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 any of the Borrowers or Guarantors or any such Subsidiary.

                  4.10 Title to Properties. Except as otherwise disclosed in the
         latest balance sheet delivered pursuant to Section 4.6 or 5.1(d) of
         this Agreement, the Borrowers, the Guarantors and their respective
         Subsidiaries have good and marketable fee simple title to all of the
         real property, and a valid and indefeasible ownership interest in all
         of the other properties and assets, reflected in said balance sheet or
         subsequently acquired by the Borrowers. All of such properties and
         assets are free and clear of any Lien except for Permitted Liens.

                  4.11 ERISA. As of the Third Amendment Date, the Borrowers, the
         Guarantors, their respective Subsidiaries, their ERISA Affiliates and
         their Plans will be in compliance in all material respects with those
         provisions of ERISA and of the Code which are applicable with respect
         to any Plan. No Prohibited Transaction and no Reportable Event has
         occurred with respect to any Plan. None of the Borrowers, the
         Guarantors, any of their respective Subsidiaries or any of the ERISA
         Affiliates is an employer with respect to any Multiemployer Plan. The
         Borrowers, the Guarantors, their respective Subsidiaries and the ERISA
         Affiliates have met the minimum funding requirements under ERISA and
         the Code with respect to each of their respective Plans, if any, and
         have not incurred any liability to the PBGC or any Plan. The execution,
         delivery and performance of the Loan Documents, including without
         limitation the Third Amendment and the Security Documents required
         thereunder, do not constitute a Prohibited Transaction. There is no
         material Unfunded Benefit Liability with respect to any Plan.

                  4.12 Disclosure. No report or other information furnished in
         writing by or on behalf of the any Borrower or Guarantor to any Bank or
         the 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.

                                      -10-
<PAGE>

         Neither this Agreement, the Notes, the Security Documents nor any other
         document, certificate, or report or statement or other information
         furnished to any Bank or the Agent by or on behalf of the Borrowers or
         the Guarantors in connection with the transactions contemplated hereby
         contains any untrue statement of a material fact or omits to state a
         material fact necessary 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 or
         Guarantor which materially and adversely affects, or which in the
         future may (so far as any Borrower or Guarantor can now foresee)
         materially and adversely affect, the business, properties, operations
         or condition, financial or otherwise, of any Borrower or Guarantor or
         any of their respective Subsidiaries, which has not been set forth in
         this Agreement or in the other documents, certificates, statements,
         reports and other information furnished in writing to the Banks by or
         on behalf of any Borrower or Guarantor in connection with the
         transactions contemplated thereby.

                  4.13 Environmental Matters. Each of the Borrowers and the
         Guarantors and their respective Subsidiaries is in compliance with all
         Environmental Laws in jurisdictions in which any of them owns or
         operates, or has owned or operated, a facility or site, or arranges or
         has arranged for disposal or treatment of hazardous substances, solid
         wastes or other wastes or holds or has held any interest in real
         property or otherwise. No demand, claim, notice, action, administrative
         proceeding, investigation or inquiry, whether brought by any
         governmental authority, private person or entity or otherwise, arising
         under, relating to or in connection with any Environmental Laws is
         pending or threatened against any Borrower, any Guarantor or any of its
         Subsidiaries, any real property in which any Borrower or any such
         Subsidiary holds or has held an interest or any past or present
         operation of the Companies, the Borrowers or any such Subsidiary.

                  4.14 Common Enterprise. The Borrowers are engaged in business
         as an integrated group. The successful and economical operation of the
         integrated group requires financing on such basis that credit supplied
         by the Banks is available to the Borrowers and may be transferred among
         them after being disbursed by the Banks. The Loans made by the Banks to
         the Borrowers on a joint and several basis will benefit, directly or
         indirectly, all of the Borrowers and their Subsidiaries by
         strengthening and providing significant economies to the integrated
         group, inasmuch as the successful operation and condition of each
         Borrower is dependent upon the continued successful performance of the
         integrated group as a whole.

                  4.15 Reportable Transaction. The Borrowers do not intend to
         treat the Loans, Facility LCs and related transactions as being a
         "reportable transaction" (within the meaning of Treasury Regulation
         Section 1.6011-4). In the event the Borrowers determine to take any
         action inconsistent with such intention, they will promptly notify the
         Agent thereof.

                  4.16 AACC IPO. As of the Third Amendment Date, the Offering
         has been consummated and in connection therewith all of the
         shareholders of AAC Investors, Inc. and RBR Holding Corp. (formerly AAC
         Holding Corp.) have contributed to Asset Acceptance Capital Corp., a
         Delaware corporation ("AACC"), all of the shares of capital stock in
         AAC Investors, Inc. and RBR Holding Corp., in exchange for shares of
         common stock of AACC, which is the class of common stock offered
         pursuant to the Offering.

                                      -11-
<PAGE>

         AAC Investors, Inc. and RBR Holding Corp. hold 60% and 40%,
         respectively, of the equity membership interests in Holdings, which is
         the holder of all the membership interests in the Borrowers. As a
         result of such transaction and the Offering, Holdings and the Borrowers
         have become indirect wholly-owned subsidiaries of AACC, a corporation
         subject to the reporting requirements of the Securities and Exchange
         Act of 1934. As of the Third Amendment Date, AACC has received gross
         proceeds of the Offering in an amount of not less than $80,000,000.

                  1.29 Article V is amended and restated in full as follows:

                                   ARTICLE V.

                                    COVENANTS

                  5.1 Affirmative Covenants. Each of the Borrowers covenants and
         agrees that, until the Termination Date and thereafter until the
         payment in full of the principal of and accrued interest on the Notes
         and the performance of all other obligations of the Borrowers under
         this Agreement, unless the Required Banks shall otherwise consent in
         writing, it shall, and shall cause each of the Guarantors and each of
         the Subsidiaries of each of the Borrowers and the Guarantors,
         respectively, to:

                           (a) Preservation of 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 company
         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; 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.

                           (b) Compliance with Laws, Etc. Comply in all material
         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, Environmental Laws and
         all Requirements of Law), in effect from time to time; 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
         such Borrower, such Guarantor or such Subsidiary, as the case may be,
         as determined in accordance with generally accepted accounting
         principles.

                           (c) Maintenance of Properties; Insurance. Maintain,
         preserve and protect all property that is material to the conduct of
         its business or any of its 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,

                                      -12-
<PAGE>

         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; and, in addition to that
         insurance required under the Security Documents, 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 Agent for purposes of assuring
         compliance with this Section 5.1(c).

                           (d) Reporting Requirements. Furnish to the Banks and
         the Agent the following:

                                    (i) Promptly and in any event within three
         calendar days after becoming aware of the occurrence of (A) any Event
         of Default or Default, (B) the commencement of any material litigation
         against, by or affecting any Borrower, any Guarantor or any Subsidiary
         of any Borrower or any Guarantor, and any material adverse developments
         therein, or (C) entering into any material contract or undertaking that
         is not entered into in the ordinary course of business or (D) any
         development in the business or affairs of any Borrower, any Guarantor
         or any such Subsidiary which has resulted in or which is likely, in the
         reasonable judgment of the Borrowers, to result in a material adverse
         change in the business, properties, operations or condition, financial
         or otherwise, of any Borrower, any Guarantor or any such Subsidiary, a
         statement of the chief financial officer of AACC setting forth details
         of each such Event of Default or Default and such litigation, material
         contract or undertaking or development and the action which such
         Borrower, such Guarantor or such Subsidiary, as the case may be, has
         taken and proposes to take with respect thereto, if any;

                                    (ii) As soon as available and in any event
         within 45 days after the end of each of the first three fiscal quarters
         of each fiscal year of AACC, the consolidated balance sheet of AACC and
         its consolidated Subsidiaries as of the end of such quarter, and the
         related consolidated statements of income, retained earnings and 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 of AACC as having been prepared in accordance with
         generally accepted accounting principles;

                                    (iii) As soon as available and in any event
         within 90 days after the end of each fiscal year of AACC, a copy of the
         consolidated balance sheet of AACC and its consolidated Subsidiaries as
         of the end of such fiscal year and the related consolidated statements
         of income, retained earnings and cash flows of AACC and its
         consolidated Subsidiaries for such fiscal year, with a customary audit
         report of an independent certified public accountants selected by AACC
         and acceptable to the

                                      -13-
<PAGE>

         Required Banks, without qualifications unacceptable to the Required
         Banks, together with a certificate of such accountants stating (A) that
         they have reviewed this Agreement and stating further whether, in the
         course of their review of such financial statements, they have become
         aware of any Event of Default or Default, and, if such an Event of
         Default or Default is continuing, a statement setting forth the nature
         and status thereof, and (B) that a computation by AACC (which
         computation shall accompany such certificate and shall be in reasonable
         detail) showing compliance with Sections 5.2(a) and (c) hereof is in
         conformity with the terms of this Agreement;

                                    (iv) Not later than the 45th day after the
         end of each fiscal quarter of AACC, including, without limitation, the
         fourth fiscal quarter of each fiscal year of AACC, a certificate of the
         chief financial officer of AACC stating (a) that no Event of Default or
         Default has occurred and is continuing or, if an Event of Default or
         Default has occurred and is continuing, a statement setting forth the
         details thereof and the action which the Borrowers have taken and
         propose to take with respect thereto, and (b) that a computation (which
         computation shall accompany such certificate and shall be in reasonable
         detail) showing compliance with Sections 5.2(a), (c) and (o) hereof in
         conformity with the terms of this Agreement, and in addition, not later
         than the 45th day after the end of each fiscal quarter of AACC,
         including, without limitation, the fourth fiscal quarter of each fiscal
         year of AACC, a report, in form and substance satisfactory to the
         Banks, with respect to the aggregate impairment reserve of the
         Borrowers and the changes therein since the last quarterly report
         delivered pursuant to this Section;

                                    (v) Not later than the 15th day after the
         end of each month, the following, prepared as of the close of business
         on the last day of each such month, in form and detail satisfactory to
         the Agent, and all certified as true and correct by the chief financial
         officer of the Borrowers:

                                            (A) a Borrowing Base Certificate,
         together with supporting schedules, setting forth such information as
         the Agent may request with respect to the aging, value and other
         information relating to the computation of the Borrowing Base and the
         eligibility of any property or assets included in such computation;

                                            (B) a bulk purchase report showing
         all acquired Receivables Portfolios of the Borrowers and the collection
         performance of each such Receivables Portfolio; and

                                            (C) an active balance report of the
         Borrowers setting forth a summary and aging of all Receivables, broken
         out by Receivables Portfolios, and identifying all Receivables on which
         any Borrower has collected any payment during the immediately preceding
         period of 90 days;

         provided that the requirements of clause (A) and (C) above shall not be
         in effect prior to the occurrence of the Borrowing Base Condition but
         shall be in effect at all times after the Borrowing Base Condition
         occurs;

                                    (vi) Promptly and in any event within 10
         Business Days after receiving or becoming aware thereof, (A) a copy of
         any notice of intent to terminate any Plan filed with the PBGC, (B) a
         statement of the chief financial officer of AACC setting

                                      -14-
<PAGE>

         forth the details of the occurrence of any Reportable Event with
         respect to any Plan, (C) a copy of any notice that any Borrower, any
         Guarantor, any Subsidiary of any Borrower or Guarantor, or any ERISA
         Affiliate may receive from the PBGC relating to the intention of the
         PBGC to terminate any Plan or to appoint a trustee to administer any
         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 a Plan;

                                    (vii) Promptly upon request by the Agent, a
         copy of any management letter or comparable analysis prepared by the
         auditors for AACC or any of its Subsidiaries;

                                    (viii) Promptly after the sending or filing
         thereof, notice of all reports, proxy statements and financial
         statements which AACC 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,
         and, in the event any such report, proxy statement or financial
         statement is not readily available to the Agent or any Bank via the
         internet, copies of such report, proxy statement or financial
         statement, as the case may be; and

                                    (ix) Promptly, such other information
         respecting the business, properties, operations or condition, financial
         or otherwise, of any of the Borrowers, the Guarantors or any of their
         respective Subsidiaries as the Agent or any Bank may from time to time
         reasonably request.

                           (e) 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 generally accepted accounting
         principles and to comply with the requirements of this Agreement and,
         at any reasonable time and from time to time, (i) permit any Bank or
         the 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 any of the Borrowers, any of the Guarantors and
         any of their respective Subsidiaries, and to discuss the affairs,
         finances and accounts of the Borrowers, the Guarantors and their
         respective Subsidiaries with their respective directors, officers,
         employees and independent auditors, and by this provision each Borrower
         and Guarantor does hereby authorize such persons to discuss such
         affairs, finances and accounts with any Bank or the Agent, and (ii)
         permit independent agents or representatives acceptable to the Required
         Banks to conduct an annual comprehensive field audit of each Borrower's
         and Guarantor's books, records, properties and assets, including,
         without limitation, all collateral subject to the Security Documents,
         at the expense of the Borrowers and the Guarantors.

                           (f) Further Assurances. Execute and deliver, within
         30 days after request therefor by the Agent or the Required Banks, all
         further instruments and documents and take all further action that may
         be necessary or desirable, or that the Agent or the Required Banks may
         request, in order to give effect to, and to aid in the exercise and
         enforcement of the rights and remedies of the Agent and the Banks
         under, this Agreement and the Security Documents. In addition, the
         Borrowers agree to deliver to the Agent (with copies for each of the
         Banks) from time to time upon the acquisition or creation of any
         Subsidiary by any Borrower or any Guarantor not listed in Schedule

                                      -15-
<PAGE>

         4.4 hereto supplements to Schedule 4.4 such that such Schedule,
         together with such supplements, shall at all times accurately reflect
         the information provided for thereon. Nothing herein shall be deemed to
         limit the restrictions of Section 5.2(f).

                           (g) Additional Security and Collateral. Promptly, and
         in any event within 30 days after request therefor by the Agent or the
         Required Banks, (i) execute and deliver, and cause each Subsidiary of
         any of the Borrowers or Guarantors to execute and deliver, additional
         Security Documents sufficient to grant to the Agent for the benefit of
         the Agent and the Banks liens and security interests in any
         after-acquired property of the types described in Section 2.7, and (ii)
         cause each Person becoming a domestic Subsidiary of AACC after the
         Third Amendment Date to execute and deliver to the Banks and the Agent
         a Guaranty and other Security Documents, together with other related
         items described in Section 2.5, sufficient to grant to the Agent of the
         benefit of the Banks and the Agent security interests in the collateral
         contemplated by Section 2.7. The Borrowers shall notify the Agent,
         within 10 days after the occurrence thereof, of the acquisition of any
         property by any Borrower that is not subject to the existing Security
         Documents, any person's becoming a Subsidiary of AACC, and any other
         event or condition that may require additional action of any nature in
         order to preserve the effectiveness and perfected status of the liens
         and security interests of the Agent and the Banks with respect to such
         property pursuant to the Security Documents. Nothing herein shall be
         deemed to limit the restrictions of Section 5.2(f).

                  5.2 Negative Covenants. Until the Termination Date and
         thereafter until the payment in full of the principal of and accrued
         interest on the Notes and the performance of all other obligations of
         the Borrowers under this Agreement, each Borrower agrees that, unless
         the Required Banks shall otherwise consent in writing, it shall not,
         and shall not permit any of the Guarantors or any of the Subsidiaries
         of any of the Borrowers or the Guarantors, respectively, to:

                           (a) Leverage Ratio. Permit or suffer the Leverage
         Ratio to exceed 1.50 to 1.00; such ratio to be determined as of the
         last day of each fiscal quarter of AACC for the period of four
         consecutive fiscal quarters of AACC then ending (it being understood
         that for any period prior to the consummation of the Offering, Adjusted
         EBITDA shall be as determined for Holdings and its Subsidiaries on a
         consolidated basis); provided that the one-time expense of compensation
         charges for the vesting in connection with the Offering of share
         appreciation rights granted by Holdings shall be disregarded in the
         calculation of Adjusted EBITDA.

                           (b) [intentionally omitted]

                           (c) Ratio of Total Liabilities to Tangible Capital
         Funds. Permit or suffer the ratio of the Consolidated Total Liabilities
         of AACC and its consolidated Subsidiaries to the Tangible Capital Funds
         of AACC and its consolidated Subsidiaries to be greater than 1.25 to
         1.00; such ratio to be determined as of the last day of each fiscal
         quarter of AACC.

                           (d) [intentionally omitted]

                                      -16-
<PAGE>

                           (e) Indebtedness; Contingent Liabilities. Create,
         incur, assume or in any manner become liable in respect of, or suffer
         to exist, any Indebtedness or other Contingent Liabilities other than:

                                    (i) the Loans and the Reimbursement
         Obligations;

                                    (ii) the Indebtedness described in Schedule
         5.2(e) hereto, having the same terms as those existing on the date of
         the Third Amendment, but no extension or renewal thereof shall be
         permitted;

                                    (iii) Indebtedness, including without
         limitation obligations under Capital Leases other than Capital Leases
         permitted under Section 5.2(e)(iv) below, in aggregate outstanding
         principal amount not exceeding $3,000,000 which is secured by one or
         more Liens permitted by Section 5.2(f)(vi) hereof;

                                    (iv) obligations under Capital Leases for

         real estate; and

                                    (v) Rate Management Transactions.

                           (f) 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 any Borrower, any Guarantor or any Subsidiary of any Borrower or
         Guarantor, other than:

                                    (i) Liens for taxes not delinquent or for
         taxes being contested in good faith by appropriate proceedings and as
         to which adequate financial reserves have been established on its books
         and records;

                                    (ii) Liens (other than any Lien imposed by
         ERISA) created and maintained in the ordinary course of business which
         are not material in the aggregate, and which would not have a material
         adverse effect on the business or operations of any Borrower, any
         Guarantor or any of their respective Subsidiaries and which constitute
         (A) pledges or deposits under worker's compensation laws, unemployment
         insurance laws or similar legislation, (B) good faith deposits in
         connection with bids, tenders, contracts or leases to which such
         Borrower, such Guarantor or any of their respective Subsidiaries is a
         party for a purpose other than borrowing money or obtaining credit,
         including rent security deposits, (C) liens imposed by law, such as
         those of carriers, warehousemen and mechanics, if payment of the
         obligation secured thereby is not yet due, (D) Liens securing taxes,
         assessments or other governmental charges or levies not yet subject to
         penalties for nonpayment, and (E) pledges or deposits to secure public
         or statutory obligations of such Borrower, such Guarantor or any such
         Subsidiary, or surety, customs or appeal bonds to which such Borrower,
         such Guarantor or any such Subsidiary is a party;

                                    (iii) Liens affecting real property which
         constitute minor survey exceptions or defects or irregularities in
         title, minor encumbrances, easements or reservations of, or rights of
         others for, rights of way, sewers, electric lines, telegraph and
         telephone lines and other similar purposes, or zoning or other
         restrictions as to the use of such real property, provided that all of
         the foregoing, in the aggregate, do not at any time materially detract
         from the value of said properties or materially impair their use in the

                                      -17-
<PAGE>

         operation of the businesses of any Borrower, any Guarantor or any of
         their respective Subsidiaries;

                                    (iv) Liens created pursuant to the Security
         Documents and Liens expressly permitted by the Security Documents;

                                    (v) each Lien described in Schedule 5.2(f)
         hereto may be suffered to exist upon the same terms as those existing
         on the date of the Third Amendment;

                                    (vi) any Lien created to secure payment of a
         portion of the purchase price of or existing at the time of acquisition
         of, or representing the lessor's interest under any Capital Lease of,
         any tangible fixed asset acquired by any Borrower, any Guarantor or any
         of their respective Subsidiaries may be created or suffered to exist
         upon such fixed asset if the outstanding principal amount of the
         Indebtedness (including obligations under a Capital Lease) secured by
         such Lien does not at any time exceed 100% of the purchase price paid
         by (or total obligations under such Capital Lease of) such Borrower,
         such Guarantor or such Subsidiary, as the case may be, for such fixed
         asset, and the aggregate principal amount of all Indebtedness
         (including obligations under Capital Leases other than Capital Leases
         permitted under Section 5.2(e)(iv)) secured by such Liens does not at
         any time exceed $3,000,000, provided that such Lien does not encumber
         any other asset at any time owned by any Borrower, any Guarantor or any
         such Subsidiary, and provided, further, that not more than one such
         Lien shall encumber any such fixed asset at any one time;

                                    (vii) licenses, leases or subleases granted
         to third parties in the ordinary course of business not interfering in
         any material respect with the business of any Borrower, any Guarantor
         or any of their respective Subsidiaries;

                                    (viii) Liens arising from precautionary UCC
         financing statements regarding operating leases permitted under Section
         5.2(g); and

                                    (ix) Liens arising from judgments, decrees
         or attachments in circumstances not constituting an Event of Default
         under Section 6.1(f), provided that cash or other property (other than
         proceeds of insurance payable by reason of such judgments, decrees or
         attachments) may only be pledged by a Borrower, a Guarantor or any of
         their respective Subsidiaries as security therefor to the extent the
         sum of the aggregate amount of such cash plus the aggregate fair market
         value of such other property does not exceed $1,000,000.

                           (g) Merger; Acquisitions; Etc. Purchase or otherwise
         acquire, whether in one or a series of transactions, 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 capital stock of or
         other ownership interest in any other person; nor merge or consolidate
         or amalgamate with any other person or take any other action having a
         similar effect; nor enter into any joint venture or similar arrangement
         with any other person; nor otherwise create or acquire any Subsidiary,
         provided, however, that this Section 5.2(g) shall not prohibit any
         merger, consolidation or amalgamation or acquisition by any Borrower or
         any Subsidiary of any Borrower if (i) such Borrower or such Subsidiary
         shall be the surviving or continuing corporation

                                      -18-
<PAGE>

         thereof, (ii) immediately before and after such merger, consolidation
         or amalgamation or 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 shall be true and correct on and
         as of the date thereof (both before and after such merger or
         acquisition is consummated) as if made on the date such merger or
         acquisition is consummated, and (iii) prior to the consummation of such
         merger or acquisition, the Borrowers shall have provided to the Banks
         and the Agent an opinion of counsel and a certificate of the chief
         financial officer of AACC (attaching computations to demonstrate
         compliance with all financial covenants hereunder), each stating that
         such merger or acquisition complies with this Section 5.2(g) and that
         any other conditions under this Agreement relating to such transaction
         have been satisfied; and provided, further, however, that the
         requirements of clause (iii) above shall apply only with respect to any
         merger, consolidation, amalgamation or acquisition, or series of
         related mergers, consolidations, amalgamations or acquisitions, where
         the aggregate consideration given by the Borrowers and the Guarantors
         in connection therewith exceeds $3,000,000.

                  In addition, this Section 5.2(g) shall not prohibit AACC or
         any of its Subsidiaries from consummating any of the following
         transactions:

                                    (1) the assets of any Subsidiary of any
         Borrower may be transferred to such Borrower or any wholly-owned
         Domestic Subsidiary of such Borrower, and any Subsidiary of any
         Borrower may be merged with and into, or be voluntarily dissolved or
         liquidated into, such Borrower or any wholly-owned Domestic Subsidiary
         of such Borrower, so long as such Borrower or such wholly-owned
         Subsidiary, as the case may be, is the surviving company of any such
         merger, dissolution or liquidation, and if the surviving company is a
         Subsidiary, the Borrowers and such Subsidiary shall have complied with
         the requirements of Section 5.1(g) immediately upon the consummation of
         such transaction, notwithstanding anything in Section 5.1(g) to the
         contrary;

                                    (2) the Borrowers and their wholly-owned
         Domestic Subsidiaries may sell or otherwise transfer accounts
         receivable and/or inventory between or among themselves in the ordinary
         course of business for resale by such Borrowers or such wholly-owned
         Domestic Subsidiaries, as the case may be;

                                    (3) the Borrowers and any of their
         Subsidiaries may lease, as lessor, equipment, machinery or its real
         property, and license, in the ordinary course of business, patents,
         trademarks, copyrights and know-how, to one or more Borrowers or their
         wholly-owned Subsidiaries, so long as such lease or license is for fair
         market value (determined in good faith by the managers, members or
         senior management of such lessor);

                                    (4) any Borrower may merge into any other
         Borrower, any Subsidiary of any Borrower may merger into any Borrower
         or any other wholly-owned Domestic Subsidiary of any Borrower, and
         subject to compliance with Sections 2.7, 5.1(f) and 5.1(g), the
         Borrowers or any of their wholly-owned Subsidiaries may create
         wholly-owned Domestic Subsidiaries;

                                    (5) the Recapitalization; and

                                      -19-
<PAGE>

                                    (6) AAC Investors, Inc. and RBR Holding
         Corp. may be merged with and into, or be voluntarily dissolved or
         liquidated into, AACC or any of its Domestic Subsidiaries.

                           (h) Disposition of Assets; Etc. Sell, lease, license,
         transfer, assign or otherwise dispose of all or a substantial 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 inventory or Receivables sold in the ordinary
         course of business upon customary credit terms and sales of scrap or
         obsolete material or equipment.

                           (i) Inconsistent Agreements. Enter into any agreement
         containing any effective provision which would be violated or breached
         by this Agreement or any of the transactions contemplated hereby or by
         performance by any Borrower, any Guarantor or any of their respective
         Subsidiaries of any of their obligations in connection therewith in any
         material respect.

                           (j) Nature of Business. Make any substantial change
         in the nature of its business from that engaged in on the date of the
         Third Amendment.

                           (k) Payments and Modification of Subordinated Debt.
         Except as expressly permitted under the terms of the related
         subordination agreements in favor of the Banks and the Agent, make any
         optional payment, prepayment or redemption of any Subordinated Debt, if
         any exists from time to time, nor amend or modify, or consent or agree
         to any amendment or modification, which would shorten any maturity or
         increase the amount of any payment of principal or increase the rate
         (or require earlier payment) of interest on any such Subordinated Debt,
         if any exists from time to time, nor amend any agreement under which
         any Subordinated Debt, if any exists from time to time, is issued or
         created or otherwise related thereto, nor enter into any agreement or
         arrangement providing for the defeasance of any Subordinated Debt, if
         any exists from time to time.

                           (l) Dividends and Other Restricted Payments. Make,
         pay, declare or authorize any dividend, payment or other distribution
         in respect of any class of its capital stock or membership interests or
         any dividend, payment or distribution in connection with the
         redemption, purchase, retirement or other acquisition, directly or
         indirectly, of its capital stock or membership interests, other than
         such dividends, payments or other distributions to the extent payable
         solely in capital stock or membership interests of such Borrower,
         Guarantor or Subsidiary, as the case may be, or amend or modify the
         Consulting Services Agreement to increase the amount payable
         thereunder, provided, however, that (i) any Borrower may make, pay,
         declare or authorize distributions to Holdings in any quarter ending
         after the Effective Date in an aggregate amount not greater than the
         amount necessary (when combined with amounts paid by each other
         Borrower and each other Subsidiary of Holdings, if any) for Holdings to
         make the distributions to its members required or permitted pursuant to
         Section 5.3(a) of the Limited Liability Company Agreement dated
         February__, 2004 among Holdings, AAC Investors, Inc. and RBR Holding
         Corp., as in effect on the date of the Third Amendment, (ii) if no
         Default or Event of Default shall exist or shall have occurred and be
         continuing and no Default or Event of Default under any other provision
         of this Agreement would result therefrom, the Borrowers and the
         Guarantors may make, pay, declare or authorize distributions in any
         quarter ending after the Effective Date in an

                                      -20-
<PAGE>

         aggregate amount not greater than the amount necessary to permit AACC
         to make payments to employees or former employees of AACC or any of its
         Subsidiaries in respect of share repurchases or payments in respect of
         share appreciation rights following the termination of their
         employment, provided that the aggregate amount distributed by all of
         the Borrowers and Guarantors for such payments in any fiscal year of
         AACC does not exceed $3,000,000, (iii) if no Default or Event of
         Default shall exist or shall have occurred and be continuing and no
         Default or Event of Default under any other provision of this Agreement
         would result therefrom, each Borrower may make, pay, declare or
         authorize distributions to Holdings from time to time in order to
         facilitate the shifting of available funds from one or more Borrowers
         to one or more of the other Borrowers, where in each case Holdings
         immediately uses the entire amount of such distribution to make a
         capital contribution to one or more of such other Borrowers, (iv) if no
         Default or Event of Default shall exist or shall have occurred and be
         continuing and no Default or Event of Default under any other provision
         of this Agreement would result therefrom, other dividends, payments and
         other distributions that in the aggregate do not exceed $1,000,000 for
         all of the Borrowers and Guarantors during any fiscal year of AACC, and
         (v) the Borrowers and the Guarantors may make the Tax Distribution
         without any consent or waiver from the Agent or the Banks. For purposes
         of this Section 5.2(l), "membership interests" and "capital stock"
         shall include membership interests and capital stock, respectively, and
         any securities exchangeable for or convertible into membership
         interests or capital stock, respectively, and any warrants, rights or
         other options to purchase or otherwise acquire membership interests or
         capital stock, respectively, or such securities, together with
         appreciation rights or other contractual obligations linked to the
         value of such membership interests or capital stock, respectively.

                           (m) Investments, Loans and Advances. Purchase or
         otherwise acquire any capital stock of or other ownership interest in,
         or debt securities of or other evidences of Indebtedness of, any other
         person; nor make any loan or advance of any of its funds or property or
         make any other extension of credit to, or make any investment or
         acquire any interest whatsoever in, any other person; nor incur any
         Contingent Liability; other than (i) commission, travel and similar
         advances made to officers and employees in the ordinary course of
         business, (ii) commercial paper of any United States issuer having the
         highest rating then given by Moody's Investors Service, Inc., or
         Standard & Poor's Corporation, direct obligations of and obligations
         fully guaranteed by the United States of America or any agency or
         instrumentality thereof, or certificates of deposit of any commercial
         bank which is a member of the Federal Reserve System and which has
         capital, surplus and undivided profit (as shown on its most recently
         published statement of condition) aggregating not less than
         $100,000,000, provided, however, that each of the foregoing investments
         has a maturity date not later than 180 days after the acquisition
         thereof by any Borrower, Guarantor or Subsidiary, as the case may be,
         or shares in mutual funds that invest solely in such securities, and
         (iii) those investments, loans, advances and other transactions
         described in Schedule 5.2(m) hereto, having the same terms as existing
         on the date of this Agreement, but no extension or renewal thereof
         shall be permitted. Nothing in this Section 5.2(m) shall prohibit (i)
         the purchase by any Borrower of Receivables Portfolios in the ordinary
         course of business, (ii) any Indebtedness permitted under Section
         5.2(e), (iii) any transaction permitted under Section 5.2(g), or (iv)
         the Recapitalization.

                                      -21-
<PAGE>

                           (n) Transactions with Affiliates. Enter into, become
         a party to, or become liable in respect of, any contract or undertaking
         with any Affiliate except (i) in the ordinary course of business and on
         terms not less favorable to such Borrower, such Guarantor or such
         Subsidiary, as the case may be, than those which could be obtained if
         such contract or undertaking were an arm's length transaction with a
         person other than an Affiliate, and (ii) the Consulting Services
         Agreement.

                           (o) [intentionally omitted]

                           (p) Government Regulation. Be or become subject at
         any time to any law, regulation, or list of any government agency
         (including, without limitation, the U.S. Office of Foreign Asset
         Control list) that prohibits or limits any Bank from making any advance
         or extension of credit to any Borrower or Guarantor or from otherwise
         conducting business with any Borrower or Guarantor, or fail to provide
         documentary and other evidence of any Borrower's or Guarantor's
         identity as may be requested by any Bank at any time to enable such
         Bank to verify any Borrower's or Guarantor's identity or to comply with
         any applicable law or regulation, including, without limitation,
         Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

                  1.30 Section 6.1 is amended and restated in full as follows:

                  6.1 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 8.1:

                           (a) Nonpayment. Any Borrower shall fail to pay when
         due any principal of or interest on the Notes, any Reimbursement
         Obligation or any fees or any other amount payable hereunder within
         five days after the same becomes due; or

                           (b) Misrepresentation. Any representation or warranty
         made by the Borrowers in Article IV hereof or by any Borrower, any
         Guarantor or any Subsidiary of any Borrower or Guarantor in any of the
         Loan Documents or in any other certificate, report, financial statement
         or other document furnished by or on behalf of the Borrowers, any of
         the Guarantors or any of their respective Subsidiaries 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 or any Guarantor
         shall fail to perform or observe any term, covenant or agreement
         contained in Section 5.2 hereof, or any Borrower or any Guarantor shall
         fail to perform or observe any term, covenant or agreement contained in
         Section 5.1 hereof which is not remedied within five calendar days
         after notice thereof shall have been given to the Borrowers by the
         Agent or any Bank; or

                           (d) Other Defaults. Any Borrower or any Guarantor
         shall fail to perform or observe any other term, covenant or agreement
         contained in this Agreement or in any Security Document (other than a
         failure which constitutes an Event of Default under another part of
         this Section 6.1), and any such failure shall remain unremedied for 30
         calendar days after notice thereof shall have been given to the
         Borrowers by the

                                      -22-
<PAGE>

         Agent (or such longer or shorter period of time as may be specified in
         such Security Document), or, if such failure is not capable of being
         remedied within such 30-day period, such longer period as is reasonably
         required for the remedy of such failure so long as the Borrowers
         promptly have commenced the pursuit of such remedy and diligently and
         in good faith continue such pursuit;

                           (e) Other Indebtedness. Any Borrower or any Guarantor
         shall fail to pay any part of the principal of, the premium, if any, or
         the interest on, or any other payment of money due under any of its
         Indebtedness at any time owing to any Bank (other than Indebtedness
         hereunder), beyond any period of grace provided with respect thereto,
         or any Borrower or any Guarantor fails to perform or observe any other
         term, covenant or agreement contained in any agreement, document or
         instrument evidencing or securing any such Indebtedness owing to any
         Bank, or under which any such Indebtedness was issued or created,
         beyond a period of grace, if any, provided with respect thereto, or the
         occurrence or existence of any default, event of default or other
         similar condition or event (however described) with respect to any Rate
         Management Transaction; or any Borrower or any Guarantor shall fail to
         pay any part of the principal of, the premium, if any, or the interest
         on, or any other payment of money due under any of its Indebtedness at
         any time owing to any other Person, beyond any period of grace provided
         with respect thereto, which individually or together with other such
         Indebtedness as to which any such failure exists has an aggregate
         outstanding principal amount in excess of $3,000,000; or any Borrower
         or any fails to perform or observe any other term, covenant or
         agreement contained in any agreement, document or instrument evidencing
         or securing any such Indebtedness owing to any other Person having such
         aggregate outstanding principal amount, or under which any such
         Indebtedness was issued or created, beyond any period of grace, if any,
         provided with respect thereto; or

                           (f) Judgments. One or more judgments or orders for
         the payment of money in an aggregate amount of $3,000,000 or more that
         are not covered by insurance shall be rendered against the Borrowers or
         the Guarantors or any of them, or any other judgment or order (whether
         or not for the payment of money) shall be rendered against or shall
         affect the Borrowers or the Guarantors or any of them which causes or
         could cause a material adverse change in the business, properties,
         operations or condition, financial or otherwise, of any Borrower or any
         Guarantor or which does or could have a material adverse effect on the
         legality, validity or enforceability of any of the Loan Documents, and
         either (i) such judgment or order shall have remained unsatisfied and
         such Borrowers or Guarantors, as the case may be, 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 any Borrower, any Guarantor,
         or any ERISA Affiliate to the PBGC or to any Plan and such Reportable
         Event is not corrected within thirty (30) days after the occurrence
         thereof; or the occurrence of any Reportable Event which could
         constitute grounds for termination of any Plan by the PBGC or for the
         appointment by the appropriate United States District Court of a
         trustee to administer any Plan and such Reportable Event is not
         corrected within thirty (30) days after the occurrence thereof; or

                                      -23-
<PAGE>

         the filing by any Borrower, any Guarantor, or any ERISA Affiliate of a
         notice of intent to terminate a Plan or the institution of other
         proceedings to terminate a Plan, if such termination could have a
         material adverse effect on the business, properties, operations or
         condition, financial or otherwise, of any Borrower or any Guarantor, or
         any Borrower, any Guarantor, or any ERISA Affiliate shall fail to pay
         when due any liability to the PBGC or to a Plan; or the PBGC shall have
         instituted proceedings to terminate, or to cause a trustee to be
         appointed to administer, any Plan; or any person engages in a
         Prohibited Transaction with respect to any Plan which results in or
         could result in liability of any Borrower, any Guarantor, any ERISA
         Affiliate, any Plan of any Borrower, any Guarantor, or their ERISA
         Affiliates or any fiduciary of any such Plan; or failure by any
         Borrower, any Guarantor, or any of their ERISA Affiliates to make a
         required installment or other payment to any 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 any Borrower, any Guarantor, or any
         ERISA Affiliate to the PBGC or any Plan; or the withdrawal of any
         Borrower, any Guarantor, or any ERISA Affiliate from a Plan during a
         plan year in which it was a "substantial employer" as defined in
         Section 4001(9a)(2) of ERISA; or any Borrower, any Guarantor, or any
         ERISA Affiliate becomes an employer with respect to any Multiemployer
         Plan without the prior written consent of the Required Banks; or

                           (h) Insolvency, Etc. Any Borrower or any Significant
         Guarantor 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 any
         Borrower or any Significant Guarantor 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 such Borrower or such
         Significant Guarantor, as the case may be, and is being contested by
         such Borrower or such Significant Guarantor, 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 any Borrower or any
         Significant Guarantor shall take any action (corporate or other) to
         authorize or further any of the actions described above in this
         subsection; or

                           (i) Security Documents. Any material provision of any
         Security Document shall at any time for any reason cease to be valid,
         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 Security Document shall be
         terminated, invalidated or set aside, or be declared ineffective or
         inoperative or in any way cease to give or provide to the Agent and the
         Banks the benefits purported to be created thereby; or

                           (j) Subordinated Debt Defaults. Any default under any
         subordination agreement in favor of the Agent or the Banks with respect
         to any Subordinated Debt shall have occurred and be continuing unwaived
         beyond any

                                      -24-
<PAGE>

         applicable grace period; or any material provision of any such
         subordination agreement or any other subordination terms of any
         Subordinated Debt shall at any time for any reason cease to be valid
         and binding and enforceable against any Borrower or any Guarantor or
         any holder of any Subordinated Debt, or the validity, binding effect or
         enforceability thereof shall be contested by any Borrower, any
         Guarantor or any Subsidiary of any Borrower or Guarantor or any holder
         of any Subordinated Debt; or any Borrower, any Guarantor or any
         Subsidiary of any Borrower or Guarantor or any such holder shall deny
         that it has any further obligation under any such subordination terms
         or any such subordination agreement, or any such subordination terms or
         subordination agreement shall be terminated, invalidated or set aside,
         or be declared ineffective or inoperative or in any way ceases to give
         or provide to the Agent and the Banks the benefits purported to be
         created thereby; or

                           (k) Control. Any Change in Control; or

                           (l) [intentionally omitted]; or

                           (m) Environmental Liabilities. The Borrowers, the
         Guarantors and their respective Subsidiaries or any of them shall incur
         liabilities in excess of $2,000,000 in the aggregate as a result of
         violation of Environmental Laws, or otherwise for remediation or
         cleanup of discharge of substances into the environment.

                  1.31 Sections 7.14 and 7.15 are amended and restated in full,
respectively, as follows:

                  7.14 Execution of Collateral Documents. The Banks hereby
         empower and authorize the Agent to execute and deliver to the Borrowers
         and the Guarantors on behalf of the Banks the Security Documents and
         all related financing statements and any financing statements,
         agreements, documents or instruments as shall be necessary or
         appropriate to effect the purposes of the Security Documents.

                  7.15 Collateral Releases. The Banks hereby empower and
         authorize the Agent to execute and deliver to the appropriate Borrowers
         and Guarantors on behalf of the Banks any agreements, documents or
         instruments as shall be necessary or appropriate to effect any releases
         of collateral which shall be permitted by the terms hereof or of any
         Security Document or which shall otherwise have been approved by the
         Required Banks (or, if required by the terms of this Agreement, all of
         the Banks) in writing.

                  1.32 The Pricing Schedule attached to this Amendment is deemed
attached to the Credit Agreement in the same form.

                  1.33 Schedule 4.4 attached to this Amendment is deemed
substituted for Schedule 4.4 attached to the Credit Agreement.

                  1.34 Schedule 5.2(e) attached to this Amendment is deemed
substituted for Schedule 5.2(e) attached to the Credit Agreement.

                  1.35 Schedule 5.2(f) attached to this Amendment is deemed
substituted for Schedule 5.2(f) attached to the Credit Agreement.

                                      -25-
<PAGE>

                  1.36 Exhibit B attached to this Amendment (the form of
Guaranty Agreement) is deemed substituted for Exhibit B attached to the Credit
Agreement.

                  1.37 Exhibit H attached to this Amendment (the form of Pledge
Agreement) is deemed added to the Credit Agreement as Exhibit H thereto.

                         ARTICLE 2. CONDITIONS PRECEDENT

         As conditions precedent to the effectiveness of this Amendment, the
Banks and the Agent shall receive the following documents and the following
matters shall be completed, all in form and substance satisfactory to each Bank
and the Agent:

                  2.1 This Amendment. This Amendment duly executed on behalf of
each of the Borrowers, the Banks and the Agent, and the acknowledgment at the
end of this Amendment duly executed on behalf of each of the Guarantors.

                  2.2 The Offering; Paydown of Loans. (a) A certificate of the
chief financial officer of AACC addressed to the Agent and the Banks to the
effect that as of the Third Amendment Date, (i) the Offering has been
consummated and in connection therewith all of the shares of capital stock in
AAC Investors, Inc. and RBR Holding Corp. (formerly AAC Holding Corp.) have been
contributed to AACC, in exchange for shares of common stock of AACC, (ii) as a
result of such transaction and the Offering, Holdings and the Borrowers have
become indirect wholly-owned subsidiaries of AACC, a corporation subject to the
reporting requirements of the Securities and Exchange Act of 1934, (iii) AACC
has received gross proceeds of the Offering in an amount not less than
$80,000,000, and (iv) no Default or Event of Default has occurred and is
continuing, and (b) the Borrowers shall have used a portion of such proceeds to
repay a portion of the Loans in an aggregate principal amount of not less than
$15,000,000.

                  2.3 Charter Documents. Certificates of recent date of the
appropriate authority or official of each Borrower's and each Guarantor's
respective state of formation listing all charter documents of such Borrower or
Guarantor, as the case may be, on file in that office and certifying as to the
good standing and existence of such Borrower or Guarantor, as the case may be,
together with copies of such charter documents, certified as of a recent date by
such authority or official and certified as true and correct as of the Third
Amendment Date by a duly authorized officer of such Borrower or Guarantor, as
the case may be, as well as any other information required by Section 326 of the
USA PATRIOT ACT or necessary for the Agent or any Bank to verify the identity of
each Borrower and Guarantor as required by Section 326 of the USA PATRIOT Act.

                  2.4 Authorizations. Copies of the operating agreement or
bylaws of each Borrower and Guarantor, respectively, together with all
authorizing resolutions and evidence of other corporate or limited liability
company action taken by each such Borrower and Guarantor to authorize the
execution, delivery and performance by each such Borrower and Guarantor of this
Amendment, the Security Documents to which it is a party and the consummation by
each such Borrower and Guarantor of the transactions contemplated hereby,
certified as true and correct as of the Third Amendment Date by a duly
authorized member, manager or officer of each such Borrower and Guarantor,
respectively.

                  2.5 Incumbency Certificates. Certificates of incumbency of
each Borrower and Guarantor containing, and attesting to the genuineness of, the
signatures of those members, managers, or officers authorized to act on behalf
of each such Borrower and Guarantor, respectively, in connection with this
Amendment, the Security Documents to which each is a party and the consummation
by each

                                      -26-
<PAGE>

such Borrower and Guarantor of the transactions contemplated hereby, certified
as true and correct as of the Third Amendment Date by a duly authorized member,
manager or officer of each such Borrower and Guarantor, respectively.

                  2.6 Consents, Approvals, Etc. Copies of all governmental and
nongovernmental consents, approvals, authorizations, declarations, registrations
or filings, if any, required on the part of any of the Borrowers or Guarantors
in connection with the execution, delivery and performance of this Amendment,
the Security Documents, or the transactions contemplated hereby or as a
condition to the legality, validity or enforceability of this Amendment or the
Security Documents, certified as true and correct and in full force and effect
as of the Third Amendment Date by a duly authorized officer of the Borrowers,
or, if none is required, a certificate of a duly authorized officer of the
Borrowers to that effect.

                  2.7 Security Documents. The Security Documents duly executed
on behalf of the Borrowers and the Guarantors party thereto granting to the
Agent the collateral and security intended to be provided pursuant to Section
2.7 of the Credit Agreement, as amended by this Amendment, together with:

                           (i) Recording, Filing, Etc. Evidence of the
         recordation, filing and other action (including payment of any
         applicable taxes or fees) in such jurisdictions as the Agent and the
         Banks may deem necessary or appropriate with respect to the Security
         Documents, including the filing of financing statements and similar
         documents which the Agent and the Banks may deem necessary or
         appropriate to create, preserve or perfect the liens, security
         interests and other rights intended to be granted to the Agent and the
         Banks hereunder, together with Uniform Commercial Code and other record
         searches in such offices as the Agent may reasonably request;

                           (ii) Stock and Membership Interests Certificates and
         Stock Powers. The certificates evidencing all capital stock and
         membership interests pledged pursuant to the Pledge Agreements,
         together with assignments separate from certificate in form and
         substance satisfactory to the Agent, with respect to each of the
         pledged certificates, duly executed in blank on behalf of each of the
         pledgors under the Pledge Agreements; and

                           (iii) Casualty and Other Insurance. Evidence that the
         casualty and other insurance required pursuant to Section 5.1(c) of the
         Credit Agreement and the Security Documents is in full force and
         effect.

                  2.8 Opinion of Counsel. A written opinion of counsel for the
Borrowers and the Guarantors, addressed to the Agent and the Banks in form and
substance acceptable to the Agent.

                  2.9 Fees. The Borrowers shall have paid to the Agent (a) for
the account of each Bank, a fee in the amount equal to one-tenth of one percent
(1/10 of 1%) of the amount of such Bank's Commitment, and (b) for the account of
the Agent and Banc One Capital Markets, Inc., such other fees, in such amounts
and at such times, to which the Borrowers and the Agent otherwise shall have
agreed.

                  2.10 Change in Loan Syndication Market. The Agent shall have
determined that (i) there is an absence of any material adverse change or
disruption in primary or secondary loan syndication markets, financial markets
or in capital markets generally that would likely impair syndication of the
Loans under the Credit Agreement as amended by this Amendment and (ii) the
Borrowers and the Guarantors have fully cooperated with the Agent's syndication
efforts including, without limitation, by providing the Agent with information
regarding the Borrowers' and the Guarantors' operations and

                                      -27-
<PAGE>

prospects and such other information as the Agent deems necessary to
successfully syndicate the Loans under the Credit Agreement as amended by this
Amendment.

                  2.11 Miscellaneous. All other documents, payments and legal
matters in connection with the transactions contemplated by this Amendment shall
have been executed, delivered and complete, as applicable, and shall be in form
and substance satisfactory to Agent and its counsel.

                    ARTICLE 3. REPRESENTATIONS AND WARRANTIES

                  In order to induce the Banks and the Agent to enter into this
Amendment, each Borrower represents and warrants that:

                  3.1 The execution, delivery and performance by each Borrower
of this Amendment are within its limited liability company powers, have been
duly authorized by all necessary 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
Borrower's charter or operating agreement, or of any contract or undertaking to
which such Borrower is a party or by which such Borrower or its property is or
may be bound or affected.

                  3.2 This Amendment is a legal, valid and binding obligation of
the Borrowers, enforceable against the Borrowers in accordance with its terms.

                  3.3 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 or member of any
Borrower, is required on the part of any Borrower in connection with the
execution, delivery and performance of this Amendment or the transactions
contemplated hereby or as a condition to the legality, validity or
enforceability of this Amendment.

                  3.4 After giving effect to the amendments contained in Article
1 of this Amendment, the representations and warranties contained in Article 4
of the Credit Agreement and the representations and warranties contained in the
Security Documents are true on and as of the date hereof with the same force and
effect as if made on and as of the date hereof, and no Default or Event of
Default has occurred and is continuing.

                            ARTICLE 4. MISCELLANEOUS

                  4.1 If any Borrower shall fail to perform or observe any term,
covenant or agreement in this Amendment, or any representation or warranty made
by the Borrowers in this Amendment shall prove to have been incorrect in any
material respect when made, such occurrence shall be deemed to constitute an
Event of Default.

                  4.2 All references to the Credit Agreement in any Security
Document or any other document, instrument or certificate referred to in the
Credit Agreement or delivered in connection therewith or pursuant thereto,
hereafter shall be deemed references to the Credit Agreement, as amended hereby.

                                      -28-
<PAGE>

                  4.3 The Security Documents, any and all certificates or
financing statements executed pursuant to the Credit Agreement or in connection
therewith and, subject to the amendments herein provided, the Credit Agreement
shall in all respects continue in full force and effect for the benefit of the
Agent and the Banks.

                  4.4 Capitalized terms used but not defined herein shall have
the respective meanings ascribed thereto in the Credit Agreement.

                  4.5 This Amendment shall be governed by and construed in
accordance with the laws of the State of Michigan.

                  4.6 The Borrowers jointly and severally agree to pay the
reasonable fees and expenses of Dickinson Wright PLLC, counsel for the Agent, in
connection with the negotiation and preparation of this Amendment and the
documents referred to herein and the consummation of the transactions
contemplated hereby, and in connection with advising the Agent as to its rights
and responsibilities with respect thereto.

                  4.7 This Amendment may be executed upon any number of
counterparts with the same effect as if the signatures thereto and hereto were
upon the same instrument.

                  4.8 USA PATRIOT ACT NOTIFICATION. The following notification
is provided to the Borrowers and the Guarantors pursuant to Section 326 of the
USA Patriot Act of 2001, 31 U.S.C. Section 5318:

IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help the
government fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify, and record
information that identifies each person or entity that opens an account,
including any deposit account, treasury management account, loan, other
extension of credit, or other financial services product. What this means for
the Borrowers and the Guarantors: When a Borrower or Guarantor opens an account,
the Agent and the Banks will ask for the Borrower's or Guarantor's name, tax
identification number, business address, and other information that will allow
the Agent and the Banks to identify the Borrower or Guarantor, as the case may
be. The Agent and the Banks may also ask to see the Borrower's or Guarantor's,
as the case may be, legal organizational documents or other identifying
documents.

                [The rest of this page intentionally left blank.]

                                      -29-
<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered as of the date first-above written.

                                    ASSET ACCEPTANCE, LLC

                                    By: ____________________________
                                             Nathaniel F. Bradley IV
                                        Its: President

                                    FINANCIAL CREDIT, LLC

                                    By: ____________________________
                                             Nathaniel F. Bradley IV
                                        Its: President

                                    CFC FINANCIAL, LLC

                                    By: ____________________________
                                             Nathaniel F. Bradley IV
                                        Its: President

                                    CONSUMER CREDIT, LLC

                                    By: ____________________________
                                             Nathaniel F. Bradley IV
                                        Its: President

                                    MED-FI ACCEPTANCE, LLC

                                    By: ____________________________
                                             Nathaniel F. Bradley IV
                                        Its: President

                                      -30-
<PAGE>

Commitment Amount: $40,000,000      BANK ONE, NA, individually and
                                    as Agent and LC Issuer

                                    By: ____________________________________

                                    Print Name: ____________________________

                                         Its: ______________________________

Commitment Amount: $15,000,000      COMERICA BANK

                                    By: ____________________________________

                                    Print Name: ____________________________

                                         Its: ______________________________

Commitment Amount: $15,000,000      FIFTH THIRD BANK,
                                    EASTERN MICHIGAN

                                    By: ____________________________________

                                    Print Name: ____________________________

                                         Its: ______________________________

Commitment Amount: $15,000,000      NATIONAL CITY BANK OF MICHIGAN/
                                    ILLINOIS

                                    By: ____________________________________

                                    Print Name: ____________________________

                                         Its: ______________________________

Commitment Amount: $15,000,000      STANDARD FEDERAL BANK, NA

                                    By: ____________________________________

                                    Print Name: ____________________________

                                         Its: ______________________________

                                      -31-
<PAGE>

                          ACKNOWLEDGMENT OF GUARANTORS

                  As of the date first set forth above, each of the undersigned
Guarantors hereby acknowledges that it has reviewed, including without
limitation Section 4.8, and fully consents to the foregoing Third Amendment to
Credit Agreement (the "Third Amendment"), that each of the Security Documents
(as defined in the Credit Agreement amended by the Third Amendment; hereinafter
the "Credit Agreement"), made by each of the undersigned in favor of the Agent
and the Banks continues in full force and effect to secure and guarantee, as the
case may be, among other things, all the indebtedness, obligations and
liabilities of the Borrowers to the Banks and the Agent under the Credit
Agreement, as amended by the Third Amendment, and the Notes, and acknowledges
and agrees that it has no defenses, counterclaims or offsets with respect
thereto. Each of the undersigned Guarantors hereby further acknowledges and
agrees for the benefit of the Banks and the Agent to be bound by and comply with
all covenants applicable to it under Article V of the Credit Agreement, as
amended by the Third Amendment. All references to the Credit Agreement in any
Security Document or any other document, instrument or certificate referred to
in the Credit Agreement or delivered in connection therewith or pursuant
thereto, hereafter shall be deemed references to the Credit Agreement, as
amended by the Third Amendment. Capitalized terms used but not defined herein
shall have the respective meanings ascribed thereto in the Credit Agreement or
the Third Amendment, as the case may be.

                                    ASSET ACCEPTANCE HOLDINGS, LLC

                                    By: ____________________________

                                        Its: _______________________

                                    AAC INVESTORS, INC.

                                    By: ____________________________

                                        Its: _______________________

                                    RBR HOLDING CORP.

                                    By: ____________________________

                                        Its: _______________________

                                    ASSET ACCEPTANCE CAPITAL CORP.

                                    By: ____________________________

                                        Its: _______________________

                                      -32-

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