Document:

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EXHIBIT 4.1                                                    EXECUTION VERSION

                 AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT

               AMENDMENT NO. 2 (this "Amendment"), dated as of November 3, 2006,
among TECUMSEH PRODUCTS COMPANY, a Michigan corporation (the "Borrower"), the
Lenders party hereto, and CITICORP USA, INC., as administrative agent and
collateral agent for the Lenders and the Issuers (in such capacities, the
"Administrative Agent"), amends certain provisions of the FIRST LIEN CREDIT
AGREEMENT, dated as of February 6, 2006 and amended as of May 5, 2006 (as
further amended hereby and as the same may be further amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"), among the
Borrower, the financial institutions from time to time party thereto as lenders
(the "Lenders"), the financial institutions from time to time party thereto as
issuing banks (the "Issuers") and the Administrative Agent.

                                   WITNESSETH:

               WHEREAS, the Borrower has requested, and the Administrative Agent
and each Lender signatory to an Acknowledgement and Consent have agreed to
certain amendments of the Credit Agreement;

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

               1. DEFINED TERMS. Capitalized terms used herein and not defined
herein but defined in the Credit Agreement are used herein as defined in the
Credit Agreement.

               2. AMENDMENT TO THE CREDIT AGREEMENT. As of the Second Amendment
Effective Date (as defined in Section 4), the Credit Agreement is hereby amended
as follows:

               (a) Section 1.1 of the Credit Agreement is hereby amended by
deleting the following existing definitions in their entirety and inserting the
following in lieu thereof:

                    "Availability Reserve" means the sum of (a) the Permanent
               Availability Reserve, (b) effective upon receipt of written
               notice of any determination thereof to the Borrower by the
               Administrative Agent such amounts as the Administrative Agent may
               from time to time establish against the Facility, in the
               Administrative Agent's sole discretion and in accordance with
               customary business practices for comparable asset based
               transactions, in order either (i) to preserve the value of the
               Collateral or the Collateral Agent's Lien thereon or (ii) to
               provide for the payment of unanticipated liabilities of any Loan
               Party arising after the Closing Date and (c) Additional Reserve;
               provided, however, for purposes of determining the Applicable
               Margin, the Permanent Availability Reserve and the Additional
               Reserve shall not be in included in the calculation of the
               Quarterly Available Credit.

                    "Available Credit" means, at any time, (a) the Maximum
               Credit minus (b) the aggregate Revolving Credit Outstandings at
               such time. For the purposes of calculating Available Credit, the
               Borrower shall not take into account any increase in cash
               balances ("Additional Cash") resulting from the extension of
               current payables or other changes to Current Payment Terms (and
               "Revolving Credit Outstandings" shall be deemed to be increased
               by the amount of any such Additional Cash).

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                    "EBITDA" means, with respect to any Person for any period,
               (a) Consolidated Net Income of such Person for such period plus
               (b) the sum of, in each case to the extent deducted in the
               calculation of such Consolidated Net Income but without
               duplication, (i) any provision for income taxes, (ii) Interest
               Expense, (iii) loss from extraordinary items, (iv) any aggregate
               loss from the sale, exchange or other disposition of capital
               assets by such Person outside the ordinary course of business,
               (v) depreciation, depletion and amortization expenses, (vi)
               non-cash expenses in respect of Fourth Quarter 2005 Reserves;
               provided, however, all such non-cash expenses in Fourth Quarter
               2005 Reserves shall not exceed an aggregate amount of $8,500,000,
               (vii) certain cash and non-cash restructuring expenses in
               connection with the closing or consolidation of certain
               facilities; provided, however, the cash portion of such
               restructuring expenses shall not exceed an aggregate amount of
               $2,500,000 in any consecutive four Fiscal Quarter period, (viii)
               all other non-cash charges and non-cash losses for such period
               that are not payable in cash in any subsequent period and (ix)
               certain fees and costs payable to (x) Rothschild Inc., a
               financial advisor to the Loan Parties, in connection with certain
               corporate services provided by or to be provided by Rothschild
               Inc. to the Loan Parties, (y) BBK, Ltd., a financial advisor to
               the Loan Parties, in connection with certain financial services
               provided or to be provided by BBK, Inc. to the Loan Parties and
               (z) the Second Lien Advisors in connection with certain financial
               due diligence and monitoring services provided to or to be
               provided by such Second Lien Advisors to the Lenders and the
               Second Lien Secured Parties following the Second Amendment
               Effective Date for so long as such professional fees and costs
               are being borne by the Loan Parties, provided, however, all such
               fees and costs payable under clauses (x), (y) and (z) do not
               exceed $2,400,000 per Fiscal Quarter minus (c) the sum of, in
               each case to the extent added in the calculation of such
               Consolidated Net Income but without duplication, (i) any credit
               for income tax, (ii) interest income, (iii) gains from
               extraordinary items for such period, (iv) any aggregate gain from
               the sale, exchange or other disposition of capital assets by such
               Person outside the ordinary course of business and (v) any other
               non-cash gains or other items which have been added in
               determining Consolidated Net Income, including any reversal of a
               charge referred to in clause (b)(viii) above by reason of a
               decrease in the value of any Stock or Stock Equivalent. For the
               avoidance of doubt, the anticipated Brazilian Tax Benefit shall
               not constitute a non-cash gain or other item which have been
               added in determining Consolidated Net Income for purposes of
               clause (c)(v) above.

                    "Net Cash Proceeds" means proceeds received by any Loan
               Party after the Closing Date in cash or Cash Equivalents from any
               (a) Asset Sale, other than an Asset Sale permitted under clauses
               (a), (b), (c)(i), (d), (e) or (h) of Section 8.4 (Sale of
               Assets), net of (i) the reasonable cash costs of sale, assignment
               or other disposition, (ii) taxes paid or reasonably estimated to
               be payable as a result thereof and (iii) any amount required to
               be paid or prepaid on Indebtedness (other than the Obligations)
               secured by the assets subject to such Asset Sale, provided,
               however, that evidence of each of clauses (i), (ii) and (iii)
               above is provided to the Administrative Agent in form and
               substance satisfactory to it, (b) Property Loss Event or (c) US
               Tax Receivable.

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                    "Scheduled Termination Date" shall mean the third
               anniversary of the Second Amendment Effective Date (as defined in
               Amendment No. 2 to the Credit Agreement).

               (b) Section 1.1 of the Credit Agreement is hereby amended by
adding the following defined terms in alphabetical order:

                    "Amendment No. 2 to the Credit Agreement" means that certain
               Amendment No. 2 to First Lien Credit Agreement, dated as of
               November 3, 2006, entered into among the Borrower, the
               Administrative Agent and the Lenders party thereto.

                    "Additional Reserve" shall mean, collectively, each reserve
               established by the Administrative Agent pursuant to Section 7.16
               hereof; provided, that the amount of each such reserve is equal
               to $5,000,000.

                    "Brazilian Tax Benefit" means the anticipated increase in
               the Borrower's net income (not to exceed an aggregate amount of
               $7,000,000) resulting from the reversal of non-cash tax charges
               associated with the "PIS" and "COFINS" taxes under Brazilian Law
               accrued prior to June 30, 2006.

                    "Disposition Adjustment" means those adjustments, if any, to
               Minimum EBITDA as set forth on Annex A hereto.

                    "Master Global Manufacture and Supply Agreement" means that
               certain Master Global Manufacture and Supply Agreement,
               substantially in the form attached hereto as Exhibit D, by and
               between the Borrower and TMT.

                    "Minimum EBITDA" means, for each reporting period set forth
               in Section 5.2 hereof, that amount of EBITDA set forth opposite
               such period in Section 5.2.

                    "Second Lien Advisors" means and includes each Person
               providing or to provide certain financial due diligence and
               monitoring services to the Second Lien Secured Parties following
               the Second Amendment Effective Date.

                    "Subject Units" means the business lines and concomitant
               entities set forth on Annex A attached hereto.

                    "TMT" means TMT-Motoco do Brasil Ltda.

                    "TMT Brazilian Out-of-Court-Restructurings" means any
               agreement between TMT and any creditor in Brazil holding 60% or
               more of the aggregate outstanding amount of TMT Indebtedness
               which share a common element among them, as defined by applicable
               Brazilian Legislation (Law 11.101) of February 9, 2005.

                    "TMT Debt Documents" means those certain debt agreements set
               forth on Annex B hereto.

                    "TMT Debt Document Arbitration Proceedings" means any
               arbitration proceedings instituted in Brazil in accordance with
               the provisions of the agreements set forth on Annex B hereto.

                                        3

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                    "TMT Enforcement Remedies or TMT Enforcement Remedy" means
               the filing of an enforcement action or any ordinary collection
               law suit or of a bankruptcy request or other formal proceedings,
               in each case filed or instituted in Brazil and arising from, or
               in connection with, any indebtedness having a principal amount in
               excess of $100,000; provided, however, that such action is not
               effectively stayed by a TMT Brazilian Out-of-Court Restructuring
               or by an order of a court of competent jurisdiction within ten
               (10) days of the commencement thereof.

                    "TMT Indebtedness" means the Indebtedness of TMT outstanding
               in an amount equal to $121,373,599.80 on the Second Amendment
               Effective Date incurred in connection with certain agreements set
               forth on Annex B attached hereto.

                    "Permanent Availability Reserve" means an amount equal to
               $15,000,000 which shall be applied at all times until all the
               Obligations have been paid in full and the Revolving Credit
               Commitments have been terminated unless (x) the Second Lien
               Secured Obligations have been paid in full and (y) the
               Administrative Agent has determined in its sole discretion that
               there has been no Liquidity Event Period occurring for 8
               consecutive weeks, at which time the Administrative Agent shall
               terminate the Permanent Availability Reserve.

                    "US Tax Receivable" means a United States income tax refund
               with respect to the 2003 tax year of any Loan Party in the amount
               of up to $14,000,000.

               (c) Section 2.5 of the Credit Agreement is hereby amended by
inserting at the end of the first sentence the following language:

                    On the Second Amendment Effective Date, the Revolving Credit
               Commitments of all Lenders shall be reduced ratably by an amount
               equal to $25,000,000. The Revolving Credit Commitments shall be
               $250,000,000.

               (d) Section 2.9(a) of the Credit Agreement is hereby amended in
its entirety and inserting the following in lieu thereof:

                    (a) Upon receipt by the Borrower or any other Loan Party of
               Net Cash Proceeds, the Borrower shall immediately prepay the
               Loans (or provide cash collateral in respect of Letters of
               Credit) in an amount equal to 100% of such Net Cash Proceeds. Any
               such mandatory prepayment shall be applied in accordance with
               clause (c) below; provided, however, that, subject to the
               Intercreditor Agreement (x) no prepayment of the Second Lien
               Secured Obligations from Net Cash Proceeds arising from any Asset
               Sale shall be permitted if, after giving effect to the
               application of such Net Cash Proceeds to the Obligations, the
               Available Credit (without giving effect to any Additional
               Reserve) is less than $25,000,000, (y) upon receipt by the
               Borrower or any other Loan Party of Net Cash Proceeds arising
               from any Loan Party's receipt of US Tax Receivable, such Net Cash
               Proceeds shall be applied as follows: (i) first, the Borrower
               shall immediately prepay the outstanding Loans to the extent that
               Available Credit (without giving effect to any Additional
               Reserve) is less than $25,000,000, and (ii) second, to the extent
               that Available Credit (without giving effect to any Additional
               Reserve) is greater than $25,000,000, the Borrower shall apply
               such Net Cash Proceeds as a mandatory prepayment of the loans
               under the Second Lien Facility and (z) upon receipt by the
               Borrower or any other Loan Party of

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               Net Cash Proceeds arising from any Asset Sale permitted under
               Section 8.4(j), such Net Cash Proceeds shall be applied as
               follows: (i) first, the Borrower shall immediately prepay that
               portion of the outstanding Loans (and provide cash collateral in
               respect of Letters of Credit) in an amount equal to that portion
               of the Available Credit created solely by the inclusion of the
               assets subject to such Asset Sale in the Borrowing Base
               immediately prior to the consummation of such Asset Sale; (ii)
               second, the Borrower shall apply the remaining balance of Net
               Cash Proceeds after giving effect to the application of such
               proceeds made under clause (i) above, as a mandatory prepayment
               of the loans under the Second Lien Facility and (iii) then, as
               long as no Liquidity Event Period is in effect, the Borrower or
               such Loan Party shall be entitled to retain any remaining Net
               Cash Proceeds.

               (e) Section 4.19 (c) is hereby amended by deleting the word "No"
at the beginning such clause and inserting the following:

                    (c) Except with respect to the Real Property located at 1925
               Nebraska Ave., Toledo, Ohio, 43607 (and set forth on Schedule
               4.19), no

               (f) Section 5.2 of the Credit Agreement is hereby amended in its
entirety as follows:

                    Section 5.2 Minimum EBITDA

                    Subject to any applicable Disposition Adjustment, the
               Borrower shall have, on the last day of each period set forth
               below, EBITDA for such period of not less than the amount set
               forth opposite such period:

<TABLE>
<CAPTION>
        PERIOD            MINIMUM EBITDA
        ------            --------------
<S>                       <C>
October 1, 2006 through    ($14,900,000)
   December 31, 2006

October 1, 2006 through    ($8,000,000)
   March 31, 2007

October 1, 2006 through     $21,800,000
   June 30, 2007

October 1, 2006 through     $57,000,000
   September 30, 2007

January 1, 2007 through     $88,900,000
   December 31, 2007
</TABLE>

               (g) Section 6.1 of the Credit Agreement is hereby amended by
inserting the following new clause (i) immediately following the existing
subsection (h) to read as follows:

                    (i) Cash Flow Forecast. The Borrower shall deliver on or
               prior to the Second Amendment Effective Date (as defined in
               Section 4), and thereafter as soon as available and in any event
               not later than Tuesday at 5:00 pm (New York time) of each week
               (A) until the repayment in full of all of the Second Lien Secured
               Obligations and thereafter (B) until the earlier of (x) the date
               that the Administrative

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               Agent determines in its sole discretion that there has been no
               Liquidity Event Period occurring for 8 consecutive weeks and (y)
               end of the Fiscal Year of 2007, a 13-week rolling cash flow
               forecast detailing cash receipts and cash disbursements on a
               weekly basis for the next 13 weeks, the information and
               calculations contained in which shall be reasonably satisfactory
               to the Administrative Agent, certified by a Responsible Officer
               of the Borrower that such forecast has been prepared in good
               faith.

               (h) Section 7.6 of the Credit Agreement is hereby amended by
inserting the following immediately following the last sentence thereof:

                    In addition, the Borrower shall authorize (and hereby does
               so authorize) its and its Subsidiaries' investment bankers and
               other financial advisors to discuss with the Administrative Agent
               or any Lender, during reasonable business hours, the status of
               the sale of the Subject Units and such other matters relating
               thereto.

               (i) Article VII (Affirmative Covenants) is hereby amended by
inserting the following new Section 7.16 immediately after the existing Section
7.15 and a new Section 7.17 after Section 7.16, each to read as follows:

                    Section 7.16 Additional Reserve

                    The Borrower and each of its Subsidiaries hereby agree and
               acknowledge that the Administrative Agent shall include in the
               Availability Reserve an Additional Reserve upon the written
               notification from the administrative agent under the Second Lien
               Credit Facility stating that the Borrower has not, by the
               applicable Target Date (as defined in the Second Lien Credit
               Agreement) reduced the outstanding principal amount of the Second
               Lien Term Loans (as defined in the Second Lien Credit Agreement)
               to the applicable Target Date Principal Reduction Goal (as
               defined in the Second Lien Credit Agreement). Any such Additional
               Reserve shall continue to be in effect until such time as the
               Administrative Agent receives written notification from the
               administrative agent under the Second Lien Credit Facility that
               Borrower has reduced the outstanding principal amount of the
               Second Lien Term Loans to at or below the Target Date Principal
               Reduction Goal set forth opposite the applicable Target Date for
               which such Additional Reserve was instituted; provided, however,
               the Administrative Agent shall have no obligation to hold any
               Additional Reserve in trust for or for the benefit of the lenders
               under the Second Lien Credit Facility.

                    Section 7.17 Current Payment Terms

                    The Borrower shall, and shall cause each Subsidiary of the
               Borrower to, duly pay and discharge in accordance with each Loan
               Party's customary business practices in respect thereto, all
               current debts, obligations and Accounts payable as they become
               due in accordance with such customary business practices
               ("Current Payment Terms"); provided, however, under no
               circumstances shall the Borrower or any Subsidiary of the
               Borrower, willfully or otherwise, extend, modify or change the
               Current Payment Terms for the purpose of redirecting or
               redeploying cash toward repaying Revolving Credit Outstandings in
               an effort to temporarily inflate Available Credit.

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               (j) Section 8.1(f) of the Credit Agreement is herby amended in
its entirety as follows:

                    (f) Indebtedness arising from intercompany loans (i) from
               the Borrower to any Guarantor, (ii) from any Guarantor to the
               Borrower or any other Guarantor, (iii) from any Non-Guarantor
               Subsidiary to the Borrower or any Guarantor, (iv) from a
               Brazilian Subsidiary to any other Brazilian Subsidiary; provided,
               however, the aggregate outstanding principal amount of all such
               Indebtedness permitted under this clause (iv) and under Section
               8.1(k)(iii)(y)(B) shall not exceed $10,000,000 or (v) from the
               Borrower or any Guarantor to any Non-Guarantor Subsidiary;
               provided, however, that, in the case of this clause (v), the
               Investment in such intercompany loan to such Non-Guarantor
               Subsidiary is permitted under Section 8.3(e)(iv) (Investments);

               (k) Section 8.1(k) of the Credit Agreement is hereby amended in
its entirety as follows:

                    (k) Indebtedness (not otherwise permitted under this Section
               8.1) (i) incurred in connection with the Brazilian Receivables
               Transactions; provided, however, that the Dollar Equivalent of
               the aggregate outstanding principal amount (or equivalent
               repurchase obligation) of all such Indebtedness incurred pursuant
               to this clause (i) shall not exceed $150,000,000 at any time,
               (ii) incurred by any Material Foreign Subsidiary; provided,
               however, that the Dollar Equivalent of the aggregate outstanding
               principal amount of all Indebtedness permitted under this clause
               (ii) shall not exceed $25,000,000 at any time and (iii) incurred
               by Tecumseh do Brasil Ltda solely for the purpose of (x) paying a
               dividend to the Borrower or (y) making a capital contribution in
               or a loan to TMT; provided, that, the Dollar Equivalent of the
               aggregate outstanding principal amount of all Indebtedness
               permitted under this clause (iii) shall not exceed (A)
               $25,000,000, in the case of clause (x) above and (B) $10,000,000,
               in the case of clause (y) above; provided, further, the
               outstanding principal amount of all Indebtedness permitted under
               this clause (iii) shall not exceed $25,000,000 at any time.

               (l) Section 8.3 (e)(iv) of the Credit Agreement is hereby amended
by adding the following immediately preceding the semi colon at the end of such
clause (e)(iv):

                    (other than Investments permitted under Section 8.1(f) and
               8.1(k))

               (m) Section 8.4(h) of the Credit Agreement is hereby amended in
its entirety to read as follows:

                    (h) the sale of certain Investment Property set forth on
               Schedule 8.4(a) in an aggregate Net Cash Proceeds of which shall
               not exceed $500,000 so long as such sale is consummated on or
               prior to January 1, 2007; and

               (n) Section 8.4 of the Credit Agreement is hereby amended by
deleting the word "and" appearing at the end of clause (h) and inserting "and"
at the end of clause (i) and inserting a new clause (j) immediately following
the existing clause (i) to read as follows:

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                    (j) as long as no Default or Event of Default is continuing
               or would result therefrom, an Asset Sale for Fair Market Value
               (i) payable in cash or (ii) payable in a combination of cash and
               other consideration; provided, however, (A) at least 85% of all
               the consideration received from such Asset Sale shall be in cash
               (except for Asset Sales of certain Subject Units set forth under
               clause III on Annex A hereto for which the greater of (x) 25% of
               the total purchase price and (y) an amount equal to that portion
               of the Available Credit created solely by the inclusion of the
               assets comprising the Subject Units set forth under clause III on
               Annex A hereof included in the Borrowing Base immediately prior
               to the consummation of such Asset Sale, shall be in cash and the
               balance of the purchase price shall be permitted to be in the
               form of the assumption of Indebtedness by the purchaser of such
               assets) and (B) the Net Cash Proceeds received from such Asset
               Sale is in an amount sufficient to satisfy the Second Lien
               Obligations, in respect of the Stock or assets of all or any part
               of any entity or combination of parts or entities comprising the
               Subject Units; provided, further, that such Net Cash Proceeds
               from such sale are applied to the Obligations as set forth in,
               and to the extent required by, Section 2.9(a).

               (o) Section 8.7 of the Credit Agreement is hereby amended by
adding the following at the end of clause (a)(i):

               (other than with any other Loan Party),

               (p) Section 8.9 of the Credit Agreement is hereby amended by
deleting the word "and" at the end of clause (e)(i) and inserting "and" at the
end of clause (e)(ii) and inserting a new clause (e)(iii) immediately following
the existing clause (e)(ii) to read as follows:

                    (iii) that certain Master Global Manufacture and Supply
               Agreement between Tecumseh Power Company and TMT, in connection
               with the restructuring of the TMT Indebtedness, with terms and
               conditions that are as favorable to the Borrower as those that
               could be obtained in a comparable arm's length transaction with a
               Person not an Affiliate of the Borrower.

               (q) Schedule 4.19 to the Credit Agreement is hereby amended by
adding that certain property set forth on Annex C hereto.

               (r) Schedule 8.4(b) to the Credit Agreement is hereby amended by
adding that certain property set forth on Annex D hereto.

               3. CONSENT AND WAIVER. (a) As of the Second Amendment Effective
Date (as defined in Section 4) and until the earlier of (i) ninety (90) days
from the date that TMT has failed to make a payment that is due and payable
under any TMT Debt Document (as in effect on the date hereof) or has otherwise
failed to comply with the terms of any TMT Debt Document (as in effect on the
date hereof), and (ii) the date that any TMT Enforcement Remedy has occurred,
the Administrative Agent and each Lender signatory to an Acknowledgement and
Consent hereby waive any Default or Event of Default under (A) Section 9.1(e)
(Events of Default) arising from TMT's failure to make any payment on any TMT
Indebtedness when the same becomes due and payable and (B) Section 9.1(f)
(Events of Default) with respect to TMT solely in connection with any Brazilian
Out-of-Court Restructuring or any TMT Debt Document Arbitration Proceeding that
may occur or be instituted.

                                        8

<PAGE>

                    (b) Each Lender signatory to an Acknowledgement and Consent
hereby consents to the Borrower's request of a one time extension of the
delivery date of the (x) monthly report solely for the fiscal month of September
2006, due within 30 days after the end of such fiscal month pursuant to Section
6.1(a) (the "September Reporting"), and (y) Borrowing Base Certificate solely
for the fiscal month of September 2006 due no later than 10 Business Days after
the end of such fiscal month pursuant to Section 6.10(a), in each case in clause
(x) and (y) above, to November 14, 2006.

                    (c) Each Lender signatory to an Acknowledgement and Consent
hereby waives any Default or Event of Default (i) under Section 5.2 of the
Credit Agreement that may have arisen from the Borrower's expected failure to
meet the minimum EBITDA requirement for the Fiscal Quarter ending September 30,
2006 and which will be reflected in the September Reporting to be delivered to
the Administrative Agent by November 14, 2006, (ii)(A) Section 4.1(b) of the
Credit Agreement that may have arisen due to the Borrower's failure to disclose
the property set forth on Annex C in Schedule 4.19 and (B) Section 4.19(c) and
(iii) Section 6.1(a) of the Credit Agreement that may have arisen due to the
Borrower's failure to deliver the monthly report for the fiscal month of August
2006 at the appropriate delivery date.

                    (d) Each Lender signatory to an Acknowledgement and Consent
hereby consents to the terms contained in Amendment No. 2 to the Second Lien
Credit Agreement.

                    (e) Each Lender signatory to an Acknowledgement and Consent
hereby consents to the terms contained in Amendment No.1 to the Intercreditor
Agreement, in form set forth hereto as Exhibit A.

               4. CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AMENDMENT.
This Amendment shall become effective on the date (the "Second Amendment
Effective Date") when the Administrative Agent shall have received all of the
following, each of which shall be in form and substance satisfactory to the
Administrative Agent:

                    (a) Certain Documents. The Administrative Agent shall have
received each of the following, in form and substance satisfactory to the
Administrative Agent:

                         (i) this Amendment, executed by the Borrower and the
Administrative Agent;

                         (ii) an Acknowledgment and Consent, in the form set
forth hereto as Exhibit B, duly executed by each of the Requisite Lenders;

                         (iii) the Consent of Guarantors, in the form set forth
hereto as Exhibit C, executed by each Guarantor;

                         (iv) an amendment to the Intercreditor Agreement
substantially in the form of Exhibit A hereto, duly executed and delivered to
the Administrative Agent; and

                         (v) such additional documentation as the Administrative
Agent or the Requisite Lenders may reasonably require.

                                        9

<PAGE>

                    (b) Second Amendment Effective Date - Second Lien. The
Second Amendment Effective Date (as defined in Amendment No. 2 to the Second
Lien Credit Agreement) shall have occurred.

                    (c) Payment of Fees, Costs and Expenses. The Administrative
Agent shall have received payment of all fees, costs and expenses, including,
without limitation, all fees, costs and expenses of the Administrative Agent
(including, without limitation, the reasonable fees and out-of-pocket expenses
of counsel for the Administrative Agent) in connection with this Amendment, the
Credit Agreement and each other Loan Document, as required by Sections 8 and 9
hereof.

                    (d) Representations and Warranties. Each of the
representations and warranties contained in Section 5 below shall be true and
correct.

                    (e) No Default or Event of Default. After giving effect to
this Amendment and Amendment No. 2 to the Second Lien Credit Agreement, no
Default or Event of Default shall have occurred and be continuing.

               5. REPRESENTATIONS AND WARRANTIES. On and as of the date hereof,
and as of the Second Amendment Effective Date, after giving effect to this
Amendment and Amendment No. 2 to the Second Lien Credit Agreement, the Borrower
hereby represents and warrants to the Lenders as follows:

                    (a) Each of the representations and warranties contained in
Article IV of the Credit Agreement, the other Loan Documents or in any
certificate, document or financial or other statement furnished at any time
under or in connection therewith are true and correct in all material respects
on and as of the date as if made on and as of such date, except to the extent
that such representations and warranties specifically relate to a specific date,
in which case such representations and warranties shall be true and correct in
all material respects as of such specific date; and

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

               6. CONTINUING EFFECT; NO OTHER AMENDMENTS. Except as expressly
amended hereby, all of the terms and provisions of the Credit Agreement and the
other Loan Documents are and shall remain in full force and effect. The
amendments and consents contained herein shall not constitute an amendment or a
waiver of any other provision of the Credit Agreement or the other Loan
Documents or for any other purpose except as expressly set forth herein.

               7. LOAN DOCUMENTS. This Amendment is deemed to be a "Loan
Document" for the purposes of the Credit Agreement.

               8. FEES. As consideration for the execution of this Amendment,
the Borrower agrees to pay to the Administrative Agent, for the account of each
Lender from which the Administrative Agent shall have received (by facsimile or
otherwise) an executed Acknowledgment and Consent with respect to this Amendment
by 5:00 p.m. (New York time) on November 3, 2006, a fee equal to 0.25% of such
Lenders' Revolving Credit Commitment then in effect.

                                       10

<PAGE>

               9. COSTS AND EXPENSES. The Borrower agrees to pay on demand all
reasonable and documented out-of-pocket costs and expenses of the Administrative
Agent in connection with the preparation, execution and delivery of this
Amendment and other instruments and documents to be delivered pursuant hereto,
including the reasonable and documented fees and out-of-pocket expenses of
counsel for the Administrative Agent with respect thereto.

               10. GOVERNING LAW; COUNTERPARTS; MISCELLANEOUS.

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

                    (b) This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, each of
which counterparts when executed and delivered shall be an original, but all of
which shall together constitute one and the same instrument.

                    (c) Section captions used in this Amendment are for
convenience only and shall not affect the construction of this Amendment.

                    (d) From and after the Second Amendment Effective Date, all
references in the Credit Agreement to the "Agreement" shall be deemed to be
references to such Agreement as modified hereby and this Amendment and the
Credit Agreement shall be read together and construed as a single instrument.

                            [signature pages follow]

                                       11

<PAGE>

               IN WITNESS WHEREOF, the undersigned parties have executed this
Amendment No. 2 to the Credit Agreement to be effective for all purposes as of
the Second Amendment Effective Date.

                                        Borrower

                                        TECUMSEH PRODUCTS COMPANY
                                        as Borrower

                                        By: /s/ James S. Nicholson
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title: Vice President, Treasurer and
                                               Chief Financial Officer

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

Administrative Agent

                                        CITICORP USA, INC.,
                                        as Administrative Agent, Collateral
                                        Agent, Dollar Swing Loan Lender,
                                        Issuer and as a Lender

                                        By: /s/ Sebastien Delasnerie
                                            ------------------------------------
                                        Name: Sebastien Delasnerie
                                        Title: Vice President

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

*indicates information omitted pursuant to a request
for confidential treatment and filed separately with
the Securities and Exchange Commission.
                                                                         ANNEX A

                                  SUBJECT UNITS

I.       *

II.      * and

III.     *

CERTAIN DEFINITIONS RELATING TO DISPOSITION ADJUSTED SET FORTH IN SECTION 5.2

"Reporting Period" has the meaning specified on Annex A.

"Electrical Segment" has the meaning specified on Annex A.

"Engines Segment" has the meaning specified on Annex A.

"Segment" means, individually, each of *, * and * as shown on Annex A.

"Cumulative EBITDA Covenant Adjustment" means, with respect to each Reporting
Period, that number set forth opposite such Reporting Period under the heading
"Cumulative EBITDA Covenant Adjustment" in the chart on Annex A.

"Cumulative Sales Projection" means, with respect to each Reporting Period, that
number set forth opposite such Reporting Period under the heading "Cumulative
Sales Projection" in the chart on Annex A.

"Quarterly Projected EBITDA Covenant" means, with respect to each quarter
specified in the applicable chart on Annex A, that number set forth opposite
such quarter under the heading "Quarterly Projected EBITDA Covenant" in the
chart on Annex A.

"Sales Projection" means, with respect to each quarter specified in the
applicable chart on Annex A, that number set forth opposite such quarter under
the heading "Sales Projection" in the chart on Annex A.

In the event of an Asset Sale of a Subject Unit permitted under Section 8.4(j),
Minimum EBITDA shall be adjusted downward, for each reporting period specified
in Section 5.2 (each a "Reporting Period") (other than Reporting Periods ended
prior to the date of the Asset Sale being examined), by the Cumulative EBITDA
Covenant Adjustment amount set forth opposite each of (x) the Reporting Period
in which the Asset Sale takes place for the applicable Segment below and (y)
each Reporting Period subsequent to the Reporting Period in which the Asset Sale
takes place for the applicable Segment below; provided, however, that

      (A) in the event the subject Asset Sale is of less than the entire
Segment, then the Cumulative EBITDA Covenant Adjustment specified below for each
Reporting Period shall be an amount equal to the product obtained by multiplying
(x) the Cumulative EBITDA Covenant Adjustment specified for such Reporting
Period by (y) a fraction (i) the numerator of which is that portion of the
Segment's Sales Projection attributable to the assets being sold and (ii) the
denominator of which is Sales Projection for the subject Segment set forth
opposite such Reporting Period; and

      (B) shall be further adjusted in accordance with GAAP accounting standards
to reflect the timing of the Asset Sale to reflect the EBITDA contribution to
such Segment's Cumulative EBITDA Covenant Adjustment that was projected for the
Segment (or portion thereof) that was the subject of the Asset Sale as set forth
in the Quarterly Projected EBITDA Covenant table below:

*

<Table>
<Caption>
                                                  CUMULATIVE                      CUMULATIVE SALES
     CUMULATIVE REPORTING                 EBITDA COVENANT ADJUSTMENT                 PROJECTION
            PERIOD                            ($ IN MILLIONS)                    ($ IN MILLIONS)
<S>                                       <C>                                    <C>
     10/01/2006-12/31/06                             *                                  *
      10/01/2006-3/31/07                             *                                  *
      10/01/2006-6/30/07                             *                                  *
      10/01/2006-9/30/07                             *                                  *
       1/1/07-12/31/07                               *                                  *
</Table>

<Table>
<Caption>
                                           QUARTERLY PROJECTED EBITDA
                                                   COVENANT                       SALES PROJECTION
            QUARTER                             ($ IN MILLIONS)                   ($ IN MILLIONS)
<S>                                        <C>                                    <C>
            Q4-2006                                   *                                 *
            Q1-2007                                   *                                 *
            Q2-2007                                   *                                 *
            Q3-2007                                   *                                 *
            Q4-2007                                   *                                 *
</Table>

*

<Table>
<Caption>

                                             CUMULATIVE EBITDA COVENANT                CUMULATIVE SALES
                                                     ADJUSTMENT                          PROJECTION
              REPORTING PERIOD                     ($ IN MILLIONS)                     ($ IN MILLIONS)
<S>                                                <C>                                 <C>
            10/01/2006-12/31/06                            *                                   *
            10/01/2006-3/31/07                             *                                   *
            10/01/2006-6/30/07                             *                                   *
            10/01/2006-9/30/07                             *                                   *
              1/1/07-12/31/07                              *                                   *
</Table>

<Table>
<Caption>
                                          QUARTERLY PROJECTED EBITDA
                                                  COVENANT                          SALES PROJECTION
           QUARTER                             ($ IN MILLIONS)                      ($ IN MILLIONS)
<S>                                       <C>                                       <C>
           Q4-2006                                    *                                    *
           Q1-2007                                    *                                    *
           Q2-2007                                    *                                    *
           Q3-2007                                    *                                    *
           Q4-2007                                    *                                    *
</Table>

*:

<Table>
<Caption>
                                                     CUMULATIVE                       CUMULATIVE SALES
                                               EBITDA COVENANT ADJUSTMENT                 PROJECTION
          REPORTING PERIOD                        ($ IN MILLIONS)                     ($ IN MILLIONS)
<S>                                            <C>                                     <C>
        10/01/2006-12/31/06                                *                                   *
        10/01/2006-3/31/07                                 *                                   *
        10/01/2006-6/30/07                                 *                                   *
        10/01/2006-9/30/07                                 *                                   *
          1/1/07-12/31/07                                  *                                   *
</Table>

<Table>
<Caption>
                                        QUARTERLY PROJECTED EBITDA
                                                COVENANT                          SALES PROJECTION
           QUARTER                           ($ IN MILLIONS)                       ($ IN MILLIONS)
<S>                                     <C>                                       <C>
           Q4-2006                                  *                                    *
           Q1-2007                                  *                                    *
           Q2-2007                                  *                                    *
           Q3-2007                                  *                                    *
           Q4-2007                                  *                                    *
</Table>

            [SIGNATURE PAGE TO GUARANTOR CONSENT TO AMENDMENT NO. 2
                        TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

                                                                         ANNEX B

                        LIST OF BRAZILIAN DEBT DOCUMENTS

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>
TMT Motoco do     Banco Nacional De        BNDES Facility Agreement No. 05.2.0306.1 dated August 12, 2005                 36,803,000
Brasil Ltda       Desenvolvimento
                  Economico E Social -
                  BNDES ("BNDES"),

Unibanco -        Banco Nacional De        Guaratee Letter dated August 22, 2005 (re BNDES Financing Contract                  NIHIL
Uniao De Bancos   Desenvolvimento          No. 05.2.0306.1)
Brasileiros       Economico E Social -
S.A.              BNDES ("BNDES"),

TMT Motoco do     Unibanco - Uniao De      Guarantee Agreement dated August 22, 2005 (re BNDES Financing Contract              NIHIL
Brasil Ltda       Bancos Brasileiros       No. 05.2.0306.1)
                  S.A.

TMT Motoco do     Banco Alfa De            Advance on Export Contract ACC 06/001123 dated 9.5.2006                         1.114.495
Brasil Ltda       Investimento S.A.        Advance on Export Contract ACC 06/001132 dated 10.5.2006                        1.216.821
                                           Advance on Export Contract ACC 06/001292 dated 23.5.2006                        1.777.961
                                           Advance on Export Contract ACC 06/001332 dated 29.5.2006                        3.581.056
                                           Advance on Export Contract ACC 06/001387 dated 7.6.2006                         1.487.333
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>
                                           Advance on Export Contract ACC 06/001388 dated 7.6.2006                         1.775.920
                                           Advance on Export Contract ACC 06/001408 dated 14.6.2006                          150.791
                                           Advance on Export Contract ACC 06/001773 dated 28.8.2006                        2.853.609
                                                                                                                          ==========
                                                                                                                          13,957,986

TMT Motoco do     Banco Bradesco S.A.      Advance on Export Contract ACC 06/005075 dated 30.6.2006                        1.107.708
Brasil Ltda                                Advance on Export Contract ACC 06/005170 dated 30.6.2006                        1.107.214
                                           Advance on Export Contract ACC 06/005231 dated 3.7.2006                           805.555
                                           Advance on Export Contract ACC 06/005452 dated 10.7.2006                        1.591.311
                                           Advance on Export Contract ACC 06/005453 dated 10.7.2006                          651.995
                                           Advance on Export Contract ACC 06/005607 dated 13.7.2006                        1.479.922
                                           Advance on Export Contract ACC 06/006530 dated 9.8.2006                         1.179.705
                                           Advance on Export Contract ACC 06/006531 dated 9.8.2006                           878.737
                                           Advance on Export Contract ACC 06/006532 dated 9.8.2006                           219.684
                                           Advance on Export Contract ACC 06/006649 dated 11.8.2006                          988.201
                                           Advance on Export Contract ACC 06/006650 dated 11.8.2006                          994.789
                                           Advance on Export Contract ACC 06/006778 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006779 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006780 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006781 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006782 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006784 dated 16.8.2006                          219.385
                                           Advance on Export Contract ACC 06/006785 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006786 dated 16.8.2006                          219.385
                                           Advance on Export Contract ACC 06/006979 dated 23.8.2006                          328.619
                                           Advance on Export Contract ACC 06/006980 dated 23.8.2006                        1.095.396
                                           Advance on Export Contract ACC 06/006981 dated 23.8.2006                          974.903
                                           Advance on Export Contract ACC 06/007140 dated 28.8.2006                        1.094.305
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>
                                           Advance on Export Contract ACC 06/007141 dated 28.8.2006                          656.583
                                           Advance on Export Contract ACC 06/007559 dated 11.9.2006                          436.499
                                           Advance on Export Contract ACC 06/007561 dated 11.9.2006                          436.499
                                           Advance on Export Contract ACC 06/007562 dated 11.9.2006                          218.250
                                           Advance on Export Contract ACC 06/007563 dated 11.9.2006                        2.149.759
                                           Advance on Export Contract ACC 06/007764 dated 13.9.2006                        4.403.264
                                           Advance on Export Contract ACC 06/074200 dated 14.9.2006                        1.714.276
                                           Advance on Export Contract ACC 06/077936 dated 27.9.2006                        2.819.470
                                                                                                                          ==========
                                                                                                                          29,745,876

TMT Motoco do     HSBC Bank Brasil         Advance on Export Contract ACC 05/070072 dated 1.11.2005                        7.330.707
Brasil Ltda       S.A. - Banco Multiplo    Advance on Export Contract ACC 05/073442 dated 16.11.2005                       4.125.818
                                           Advance on Export Contract ACC 06/031332 dated 25.4.2006                        2.308.042
                                           Advance on Export Contract ACC 06/035254 dated 10.5.2006                        2.328.943
                                           Advance on Export Contract ACC 06/038119 dated 17.5.2006                          445.846
                                           Advance on Export Contract ACC 06/039810 dated 22.5.2006                        1.336.562
                                           Advance on Export Contract ACC 06/049962 dated 22.6.2006                        1.161.796
                                           Advance on Export Contract ACC 06/051829 dated 29.6.2006                        1.225.224
                                           Advance on Export Contract ACC 06/055126 dated 11.7.2006                          773.469
                                           Advance on Export Contract ACC 06/056736 dated 17.7.2006                          145.724
                                           Advance on Export Contract ACC 06/057958 dated 20.7.2006                        1.102.863
                                           Advance on Export Contract ACC 06/057962 dated 20.7.2006                        1.094.040
                                           Advance on Export Contract ACC 06/059007 dated 25.7.2006                        1.295.680
                                           Advance on Export Contract ACC 06/060457 dated 28.7.2006                        1.634.136
                                           Advance on Export Contract ACC 06/062166 dated 3.8.2006                           250.734
                                           Advance on Export Contract ACC 06/063032 dated 7.8.2006                         1.120.984
                                                                                                                          ==========
                                                                                                                          27,680,568
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>
TMT Motoco do     Banco Itau BBA S.A.      Advance on Export Contract ACC 05/018001 dated 6.10.2005                        2.447.495
Brasil Ltda                                Advance on Export Contract ACC 05/018536 dated 17.10.2005                       2.410.372
                                           Advance on Export Contract ACC 05/019934 dated 4.11.2005                          918.237
                                           Advance on Export Contract ACC 05/020684 dated 17.11.2005                       2.522.189
                                           Advance on Export Contract ACC 05/020968 dated 21.11.2005                         687.399
                                           Advance on Export Contract ACC 05/021502 dated 25.11.2005                         916.092
                                                                                                                          ==========
                                                                                                                           9,901,784

TMT Motoco do     Banco Itau BBA S.A.      Bank Credit Bills representing Dual Index Loans Contract 106306091100100
Brasil Ltda                                dated 11.9.2006                                                                 8.999.761
                                           Bank Credit Bills representing Dual Index Loans Contract 106306091301500
                                           dated 13.9.2006                                                                 5.364.066
                                           Bank Credit Bills representing Dual Index Loans Contract MC6.63/12
                                           dated 15.9.2006                                                                 1.581.902
                                           Bank Credit Bills representing Dual Index Loans Contract 106306092000100
                                           dated 20.9.2006                                                                 4.678.354
                                           Bank Credit Bills representing Dual Index Loans Contract 106306092200100
                                           dated 22.9.2006                                                                 6.617.995
                                           Bank Credit Bills representing Dual Index Loans Contract EC5.63/01 B
                                           dated 25.9.2006                                                                 1.135.968
                                                                                                                          ==========
                                                                                                                          28,378,046

TMT Motoco do     Banco Safra S.A.         BNDES Facility Agreement 32106591-3 dated                                         412.106
Brasil Ltda                                BNDES Facility Agreement 32108874-3 dated 07.12.2005                              460.138
                                           BNDES Facility Agreement 32108523-0 dated 30.12.2004                              491.226
                                                                                                                          ==========
                                                                                                                           1,363,470

TMT Motoco do     Banco Bradesco S.A.      BNDES Facility Agreement (proposal no 2004018) dated 19.04.2005                49,493,000
Brasil Ltda
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>

TMT Motoco do     Fleet National Bank      Brazilian Pre-Export Financing Agreement 03/023970 dated 18.6.2003              2.174.207
Brasil Ltda       d.b.a BankBoston, N.A    Brazilian Pre-Export Financing Agreement 03/027035 dated 10.7.2003              2.610.858
                                           Brazilian Pre-Export Financing Agreement 03/031835 dated 8.8.2003               2.590.933
                                           Brazilian Pre-Export Financing Agreement 03/033941 dated 22.8.2003              2.575.366
                                           Brazilian Pre-Export Financing Agreement 04/018926 dated 31.3.2004              3.261.303
                                           Brazilian Pre-Export Financing Agreement 04/026608 dated 6.5.2004               3.660.592
                                                                                                                          ==========
                                                                                                                          16,873,259

TMT Motoco do     Tecumseh do Brasil       Loan Agreement dated June 22, 2004                                             48,798,000
Brasil Ltda       Ltda.
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

                                                                         ANNEX C

                      PROPERTY TO BE ADDED TO SCHEDULE 4.19

<TABLE>
<CAPTION>
  FACILITY           OWNER/LESSEE (LESSOR)               STREET ADDRESS
  --------           ---------------------               --------------
<S>            <C>                                <C>
Toledo, Ohio   Owner: Tecumseh Products Company   1925 Nebraska Ave., Toledo,
               Lessee: Ice Investments, Inc.      Ohio 43607
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

                                                                         ANNEX D

                    PROPERTY TO BE ADDED TO SCHEDULE 8.4 (b)

16045 Michigan Avenue
New Holstein, WI 53061

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT AGREEMENT]
<PAGE>

                                                                       EXHIBIT A

                  AMENDMENT NO. 1 TO THE INTECREDITOR AGREEMENT

<PAGE>

                                                                       EXHIBIT B

                           ACKNOWLEDGEMENT AND CONSENT

To:  CITICORP USA, INC., as Administrative Agent
     388 Greenwich Street, 19th Floor
     New York, New York 10013

               RE: TECUMSEH PRODUCTS COMPANY

               Reference is made to the CREDIT AGREEMENT, dated as of February
6, 2006, as amended (as the same may be further amended, supplemented, restated
or otherwise modified from time to time, the "CREDIT AGREEMENT"), among TECUMSEH
PRODUCTS COMPANY, a Michigan corporation (the "BORROWER"), the Lenders and
Issuers party thereto and CITICORP USA, INC. ("CITICORP"), as administrative
agent and collateral agent for the Lenders and the Issuers (in such capacity,
the "ADMINISTRATIVE AGENT"). Unless otherwise specified herein, all capitalized
terms used in this Waiver shall have the meanings ascribed to such terms in the
Credit Agreement.

               The Borrower has requested that the Lenders consent to amend the
Credit Agreement on the terms described in Amendment No. 2 to First Lien Credit
Agreement (the "AMENDMENT"), the form of which is attached hereto.

               Pursuant to Section 11.1(a) (Amendments, Waivers, Etc.) of the
Credit Agreement, the undersigned Lender hereby consents to the terms of the
Amendment and authorizes the Administrative Agent to execute and deliver the
Waiver on its behalf.

                                        Very truly yours,

                                        ----------------------------------------
                                        [Name of Lender]

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

Dated as of November 3, 2006

<PAGE>

                                                                       EXHIBIT C

                              CONSENT OF GUARANTORS

                                                    Dated as of November 3, 2006

               Each of the undersigned companies, as a Guarantor under the
Guaranty dated February 6, 2006 (the "Guaranty") in favor of the Secured Parties
under the Credit Agreement referred to in the foregoing Amendment, hereby
consents to such Amendment and hereby confirms and agrees that notwithstanding
the effectiveness of such Amendment, the Guaranty is, and shall continue to be,
in full force and effect and is hereby ratified and confirmed in all respects,
except that, on and after the effectiveness of such Amendment, each reference in
the Guaranty to the "Credit Agreement", "thereunder", "thereof" or words of like
import shall mean and be a reference to the Credit Agreement, as amended by such
Amendment.

                            [Signature pages follow]

<PAGE>

               IN WITNESS WHEREOF, the parties hereto have consented to this
Amendment No. 2, as of the date first written above.

                                        CONVERGENT TECHNOLOGIES INTERNATIONAL,
                                        INC.
                                        TECUMSEH TRADING COMPANY
                                        EVERGY, INC.
                                        FASCO INDUSTRIES, INC.
                                        MANUFACTURING DATA SYSTEMS, INC.
                                        M. P. PUMPS, INC.
                                        TECUMSEH CANADA HOLDING COMPANY
                                        TECUMSEH COMPRESSOR COMPANY
                                        TECUMSEH POWER COMPANY
                                        VON WEISE GEAR COMPANY
                                        as U.S. Guarantors

                                        By:
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title: Vice President and Treasurer

                                        EUROMOTOR, INC.
                                        as U.S. Guarantor

                                        By:
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title: Vice President

                                        HAYTON PROPERTY COMPANY, LLC
                                        TECUMSEH DO BRASIL USA, LLC
                                        as U.S. Guarantors

                                        By:
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title: President

  [SIGNATURE PAGE TO GUARANTOR CONSENT TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT
                                   AGREEMENT]

<PAGE>

                                        TECUMSEH PRODUCTS OF CANADA LIMITED,
                                        as Canadian Guarantor

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

                                        FASCO MOTORS COMPANY,
                                        as Canadian Guarantor

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

  [SIGNATURE PAGE TO GUARANTOR CONSENT TO AMENDMENT NO. 2 TO FIRST LIEN CREDIT
                                   AGREEMENT]

<PAGE>

                                                                       EXHIBIT D

                 MASTER GLOBAL MANUFACTURE AND SUPPLY AGREEMENT<PAGE>

EXHIBIT 4.2                                                    EXECUTION VERSION

                 AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT

               AMENDMENT NO. 2 (this "Amendment"), dated as of November 3, 2006,
among TECUMSEH PRODUCTS COMPANY, a Michigan corporation (the "Borrower"), the
Lenders party hereto, and CITICORP USA, INC., as administrative agent and
collateral agent for the Lenders (in such capacities, the "Administrative
Agent"), amends certain provisions of the SECOND LIEN CREDIT AGREEMENT, dated as
of February 6, 2006 and amended as of May 5, 2006 (as further amended hereby and
as the same may be further amended, supplemented or otherwise modified from time
to time, the "Credit Agreement"), among the Borrower, the financial institutions
from time to time party thereto as lenders (the "Lenders") and the
Administrative Agent.

                                   WITNESSETH:

               WHEREAS, the Borrower has requested, and the Administrative Agent
and each Lender signatory to an Acknowledgement and Consent have agreed to amend
certain amendments of the Credit Agreement;

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

               1. DEFINED TERMS. Capitalized terms used herein and not defined
herein but defined in the Credit Agreement are used herein as defined in the
Credit Agreement.

               2. AMENDMENT TO THE CREDIT AGREEMENT. As of the Second Amendment
Effective Date (as defined in Section 4), the Credit Agreement is hereby amended
as follows:

               (a) Section 1.1 of the Credit Agreement is hereby amended by
deleting the following existing definitions in their entirety and inserting the
following in lieu thereof:

                    "EBITDA" means, with respect to any Person for any period,
          (a) Consolidated Net Income of such Person for such period plus (b)
          the sum of, in each case to the extent deducted in the calculation of
          such Consolidated Net Income but without duplication, (i) any
          provision for income taxes, (ii) Interest Expense, (iii) loss from
          extraordinary items, (iv) any aggregate loss from the sale, exchange
          or other disposition of capital assets by such Person outside the
          ordinary course of business, (v) depreciation, depletion and
          amortization expenses, (vi) non-cash expenses in respect of Fourth
          Quarter 2005 Reserves; provided, however, all such non-cash expenses
          in Fourth Quarter 2005 Reserves shall not exceed an aggregate amount
          of $8,500,000, (vii) certain cash and non-cash restructuring expenses
          in connection with the closing or consolidation of certain facilities;
          provided, however, the cash portion of such restructuring expenses
          shall not exceed an aggregate amount of $2,500,000 in any consecutive
          four Fiscal Quarter period, (viii) all other non-cash charges and
          non-cash losses for such period that are not payable in cash in any
          subsequent period and (ix) certain fees payable to (x) Rothschild
          Inc., a financial advisor to the Loan Parties, in connection with
          certain corporate services provided by or to be provided by Rothschild
          Inc. to the Loan Parties, (y) BBK, Ltd., a financial advisor to the
          Loan Parties, in connection with certain financial services provided
          or to be provided by BBK, Inc. to the Loan Parties and (z) the Second
          Lien Advisors in connection with certain financial due diligence and
          monitoring services provided to

                                        1

<PAGE>

          or to be provided by such Second Lien Advisors to the Lenders and the
          Second Lien Secured Parties following the Second Amendment Effective
          Date for so long as such professional fees and costs are being borne
          by the Loan Parties; provided, however, all such fees and costs
          payable under clauses (x), (y) and (z) do not exceed $ 2,400,000 per
          Fiscal Quarter minus (c) the sum of, in each case to the extent added
          in the calculation of such Consolidated Net Income but without
          duplication, (i) any credit for income tax, (ii) interest income,
          (iii) gains from extraordinary items for such period, (iv) any
          aggregate gain from the sale, exchange or other disposition of capital
          assets by such Person outside the ordinary course of business and (v)
          any other non-cash gains or other items which have been added in
          determining Consolidated Net Income, including any reversal of a
          charge referred to in clause (b)(viii) above by reason of a decrease
          in the value of any Stock or Stock Equivalent. For the avoidance of
          doubt, the anticipated Brazilian Tax Benefit shall not constitute a
          non-cash gain or other item which have been added in determining
          Consolidated Net Income for purposes of clause (c)(v) above.

                    "Net Cash Proceeds" means proceeds received by any Loan
          Party after the Closing Date in cash or Cash Equivalents from any (a)
          Asset Sale, other than an Asset Sale permitted under clauses (a), (b),
          (c)(i), (d), (e) or (h) of Section 8.4 (Sale of Assets), net of (i)
          the reasonable cash costs of sale, assignment or other disposition,
          (ii) taxes paid or reasonably estimated to be payable as a result
          thereof and (iii) any amount required to be paid or prepaid on
          Indebtedness (other than the Obligations) secured by the assets
          subject to such Asset Sale, provided, however, that evidence of each
          of clauses (i), (ii) and (iii) above is provided to the Administrative
          Agent in form and substance satisfactory to it, (b) Property Loss
          Event, (c)(i) Equity Issuance (other than any such issuance of common
          Stock of Borrower occurring in the ordinary course of business to any
          director, member of the management or employee of the Borrower or its
          Subsidiaries) or (ii) any Debt Issuance (other than any Debt Issuance
          permitted under clauses (a) through (k) of Section 8.1
          (Indebtedness)), in each case net of brokers' and advisors' fees and
          other costs incurred in connection with such transaction; provided,
          however, that in the case of this clause (c), evidence of such costs
          is provided to the Administrative Agent in form and substance
          satisfactory to it or (d) US Tax Receivable.

                    "Term Loan Maturity Date" means the third anniversary of the
          Second Amendment Effective Date (as defined in Amendment No. 2 to the
          Credit Agreement).

               (b) Section 1.1 of the Credit Agreement is hereby amended by
adding the following defined terms in alphabetical order:

                    "Amendment No. 2 to the Credit Agreement" means that certain
          Amendment No. 2 to Second Lien Credit Agreement, dated as of November
          3, 2006, entered into among the Borrower, the Administrative Agent and
          the Lenders party thereto.

                    "Brazilian Tax Benefit" means the anticipated increase in
          the Borrower's net income (not to exceed an aggregate amount of
          $7,000,000) resulting from the

                                        2

<PAGE>

          reversal of non-cash tax charges associated with the "PIS" and
          "COFINS" taxes under Brazilian Law accrued prior to June 30, 2006.

                    "Disposition Adjustment" means those adjustments, if any, to
          Minimum EBITDA as set forth on Annex A hereto.

                    "Master Global Manufacture and Supply Agreement" means that
          certain Master Global Manufacture and Supply Agreement, substantially
          in the form attached hereto as Exhibit D, by and between the Borrower
          and TMT.

                    "Minimum EBITDA" means, for each reporting period set forth
          in Section 5.2 hereof, that amount of EBITDA set forth opposite such
          period in Section 5.2.

                    "Second Lien Advisors" means and includes each Person
          providing or to provide certain financial due diligence and monitoring
          services to the Second Lien Secured Parties following the Second
          Amendment Effective Date.

                    "Subject Units" means the business lines and concomitant
          entities set forth on Annex A.

                    "Target Date" has the meaning ascribed thereto in Section
          2.4.

                    "Target Date Delta" means an amount calculated as follows:

                         (A) for the July 1, 2007 Target Date, the difference
          between (x) the outstanding principal amount of the Term Loans on such
          Target Date and (y) $33,600,000; and

                         (B) for each of the October 1, 2007 and January 1, 2008
          Target Dates, the difference between (x) outstanding principal amount
          of the Term Loans on such Target Date and (y) the applicable Target
          Date Principal Reduction Goal; provided, however, that in no event
          shall (A) the Target Date Delta for the October 1, 2007 exceed
          $15,300,000 or (B) the Target Date Delta for the January 1, 2008
          exceed $18,300,000.

                    "Target Date Principal Reduction Goal" means, with respect
          to each Target Date, the amount set forth opposite the applicable
          Target Date in Section 2.4.

                    "TMT" means TMT-Motoco do Brasil Ltda.

                    "TMT Brazilian Out-of-Court-Restructurings" means any
          agreement between TMT and any creditor in Brazil holding 60% or more
          of the aggregate outstanding amount of TMT Indebtedness which share a
          common element among them, as defined by applicable Brazilian
          Legislation (Law 11.101) of February 9, 2005.

                    "TMT Debt Documents" means those certain debt agreements set
          forth on Annex B hereto.

                                        3

<PAGE>

                    "TMT Debt Document Arbitration Proceedings" means any
          arbitration proceedings instituted in Brazil in accordance with the
          provisions of the agreements set forth on Annex B hereto.

                    "TMT Enforcement Remedies or TMT Enforcement Remedy" means
          the filing of an enforcement action or any ordinary collection law
          suit or of a bankruptcy request or other formal proceedings, in each
          case filed or instituted in Brazil and arising from, or in connection
          with, any indebtedness having a principal amount in excess of
          $100,000; provided, however, that such action is not effectively
          stayed by a TMT Brazilian Out-of-Court Restructuring or an order of a
          court of competent jurisdiction within ten (10) days of the
          commencement thereof.

                    "TMT Indebtedness" means the Indebtedness of TMT outstanding
          in an amount equal to $121,373,599.80 on the Second Amendment
          Effective Date incurred in connection with certain agreements set
          forth on Annex B attached hereto.

                    "PIK Margin" means, in respect of any Loan outstanding from
          and after the Second Amendment Effective Date (as defined in Amendment
          No. 2 to the Credit Agreement) a rate equal to 2.00% per annum.

                    "US Tax Receivable" means a United States income tax refund
          with respect to the 2003 tax year of any Loan Party in the amount of
          up to $14,000,000.

               (c) Section 2.4 of the Credit Agreement is hereby amended by
inserting the letter "(a)" at the beginning of the first sentence thereof and
inserting the following new clause (b) at the end of such section:

                    (b) If the outstanding principal amount of the Term Loans on
          each date set forth below (each a "Target Date") exceeds the amount
          set forth opposite such date, (x) on such Target Date, the
          Administrative Agent shall notify in writing the administrative agent
          under the First Lien Credit Agreement to include an Additional Reserve
          (as such term is defined in the First Lien Credit Agreement) until
          such time as the Term Loan has been reduced to or below the Target
          Date Principal Reduction Goal set forth opposite the applicable Target
          Date for which such Additional Reserve was instituted (at which time
          the Administrative Agent shall promptly notify the administrative
          agent under the First Lien Credit Agreement to remove such Additional
          Reserve) and (y) on such Target Date, the Borrower shall pay to the
          Administrative Agent for the account of each Lender in accordance with
          its Ratable Portion, a fee (the "PIK Fee") equal to 10% of the Target
          Date Delta for such applicable Target Date, which fee shall be payable
          in kind and added to the principal amount of the Term Loans on the
          applicable Target Date and shall bear interest as if such PIK Fee were
          a Term Loan funded on the applicable Target Date:

<TABLE>
<S>               <C>
July 1, 2007      $33,600,000
October 1, 2007   $18,300,000
January 1, 2008   $         0
</TABLE>

                                       4

<PAGE>

               (d) The third sentence in Section 2.6 (a) of the Credit Agreement
is hereby amended in its entirety and inserting the following in lieu thereof:

                    Notwithstanding the foregoing, the Prepayment Premium shall
          not apply to any optional prepayment made with proceeds of (x) the
          sale of Little Giant Pump Company as long as such sale is consummated
          on or prior to July 31, 2006, (y) the sale of all or any part of any
          entity or combination of parts or entities comprising the Subject
          Units on or prior to December 31, 2007 and (z) US Tax Receivable.

               (e) Section 2.7 (a) and (b) of the Credit Agreement are hereby
amended in their entirety and inserting the following in lieu thereof:

                    (a) Subject to clause (c) below, upon receipt by the
          Borrower or any Loan Party of Net Cash Proceeds arising from an Asset
          Sale (other than any Asset Sale permitted by Section 8.4(j)), Property
          Loss Event, Equity Issuance, Debt Issuance or US Tax Receivable, the
          Borrower shall immediately prepay the Loans in an amount equal to 100%
          of such Net Cash Proceeds; provided, however, that no such prepayment
          shall be required under this Agreement to the extent the First Lien
          Available Credit (without giving effect to any Additional Reserve
          established pursuant to Section 2.4(b)) would be less than $25,000,000
          after giving effect to such prepayment.

                    (b) Upon receipt by the Borrower or any Loan Party of Net
          Cash Proceeds arising from an Asset Sale permitted under Section
          8.4(j), the Borrower shall prepay the Loans in an amount equal to the
          amount of Net Cash Proceeds specified in clause (ii) below.
          Notwithstanding anything herein to the contrary, such Net Cash
          Proceeds shall be applied as follows: (i) first, the Borrower shall
          immediately prepay that portion of the outstanding revolving loans
          (and provide cash collateral in respect of letters of credit) under
          the First Lien Credit Agreement in an amount equal to that portion of
          the First Lien Available Credit created solely by the inclusion of the
          assets subject to such Asset Sale in the Borrowing Base (as defined in
          the First Lien Credit Agreement) immediately prior to the consummation
          of such Asset Sale and (ii) second, the Borrower shall apply the
          remaining balance of Net Cash Proceeds after giving effect to the
          application of such proceeds made under clause (i) above as a
          mandatory prepayment of the Loans.

               (f) Sections 2.8 (a) and (b) of the Credit Agreement are hereby
amended in their entirety as follows:

               (a) Rate of Interest. All Loans (including any interest added to
     the principal amount of the Loans pursuant to clause (b) below) and the
     outstanding amount of all other Obligations shall bear interest, in the
     case of Loans, on the unpaid principal amount thereof from the date such
     Loans are made or in the case of any interest added to the principal amount
     of the Loans, including but not limited to any PIK Fee, from the date such
     interest or fee is so added and, in the case of such other Obligations,
     from the date such other Obligations are due and payable until, in all
     cases, paid in full, except as otherwise provided in clause (c) below, as
     follows:

                                        5

<PAGE>

                         (i) if a Base Rate Loan or such other Obligation, at a
               rate per annum equal to the sum of (A) the Base Rate as in effect
               from time to time, (B) the Applicable Margin for Term Loans that
               are Base Rate Loans and (C) in the case of the Term Loans only
               (including any PIK Fee or interest added to the principal amount
               of the Term Loans pursuant to Section 2.4(b)), the PIK Margin;
               and

                         (ii) if a Eurodollar Rate Loan, at a rate per annum
               equal to the sum of (A) the Eurodollar Rate determined for the
               applicable Interest Period, (B) the Applicable Margin in effect
               from time to time during such Eurodollar Interest Period and (C)
               in the case of Term Loans only (including any PIK Fee or interest
               added to the principal amount of the Term Loans pursuant to
               Section 2.4(b)), the PIK Margin.

               (b) Interest Payments. (i) Interest accrued on each Base Rate
     Loan (other than in respect of the PIK Margin) shall be payable in arrears
     (A) on the first Business Day of each calendar month, commencing on the
     first such day following the making of such Base Rate Loan, (B) upon the
     payment or prepayment thereof in full or in part and (C) if not previously
     paid in full, at maturity (whether by acceleration or otherwise) of such
     Base Rate Loan, (ii) interest accrued on each Eurodollar Rate Loan (other
     than in respect of the PIK Margin) shall be payable in arrears (A) on the
     last day of each Interest Period applicable to such Loan and, if such
     Interest Period has a duration of more than three months, on each date
     during such Interest Period occurring every three months from the first day
     of such Interest Period, (B) upon the payment or prepayment thereof in full
     or in part and (C) if not previously paid in full, at maturity (whether by
     acceleration or otherwise) of such Eurodollar Rate Loan and (iii) interest
     accrued on the amount of all other Obligations shall be payable on demand
     from and after the time such Obligation becomes due and payable (whether by
     acceleration or otherwise). Notwithstanding the foregoing, interest accrued
     on each Loan in respect of the PIK Margin shall be payable in kind on the
     last day of each calendar quarter (based on the average daily principal
     amount of the Loans outstanding during such quarter) and such interest
     shall automatically be capitalized and added to the outstanding principal
     amount of the Term Loans on such date and such capitalized amount shall
     bear interest on the same basis as if such capitalized amount were a Term
     Loan funded on the Closing Date. Any such capitalized amount shall become
     due and payable in cash on the Term Loan Maturity Date.

               (g) Section 4.19 (c) is hereby amended by deleting the word "No"
at the beginning such clause and inserting the following:

                    (c) Except with respect to the Real Property located at 1925
          Nebraska Ave., Toledo, Ohio, 43607 (and set forth on Schedule 4.19),
          no

               (h) Section 5.2 of the Credit Agreement is hereby amended in its
entirety as follows:

                    Section 5.2 Minimum EBITDA

                    Subject to any applicable Disposition Adjustment, the
          Borrower shall have, on the last day of each period set forth below,
          EBITDA for such period of not less than the amount set forth opposite
          such period:

                                        6

<PAGE>

<TABLE>
<CAPTION>
                  PERIOD                      MINIMUM EBITDA
                  ------                      --------------
<S>                                           <C>
October 1, 2006 through December 31, 2006      ($14,900,000)
October 1, 2006 through March 31, 2007          ($8,000,000)
October 1, 2006 through June 30, 2007         $  19,800,000
October 1, 2006 through September 30, 2007    $  55,000,000
January 1, 2007 through December 31, 2007     $  86,900,000
</TABLE>

               (i) Section 6.1 of the Credit Agreement is hereby amended by
inserting the following new clause (i) immediately following the existing clause
(h) to read as follows:

                    (h) Cash Flow Forecast. The Borrower shall deliver on or
          prior to the Second Amendment Effective Date (as defined in Section
          4), and thereafter as soon as available and in any event not later
          than Tuesday at 5:00 pm (New York time) of each week until the earlier
          of (x) the date that the Administrative Agent determines in its sole
          discretion that there has been no Liquidity Event Period (as defined
          under the First Lien Credit Agreement) occurring for 8 consecutive
          weeks under the First Lien Credit Agreement and (y) end of the Fiscal
          Year of 2007, a 13-week rolling cash flow forecast detailing cash
          receipts and cash disbursements on a weekly basis for the next 13
          weeks, the information and calculations contained in which shall be
          reasonably satisfactory to the Administrative Agent, certified by a
          Responsible Officer of the Borrower that such forecast has been
          prepared in good faith.

               (j) Section 7.6 of the Credit Agreement is hereby amended by
inserting the following immediately following the last sentence thereof:

                    In addition, the Borrower shall authorize (and hereby does
          so authorize) its and its Subsidiaries' investment bankers and other
          financial advisors to discuss with the Administrative Agent or any
          Lender, during reasonable business hours, the status of the sale of
          the Subject Units and such other matters relating thereto.

               (k) Article VII (Affirmative Covenants) is hereby amended by
inserting a new Section 7.15 immediately after the existing Section 7.14 to read
as follows:

                    The Borrower shall, and shall cause each Subsidiary of the
          Borrower to, duly pay and discharge in accordance with each Loan
          Party's customary business practices in respect thereto, all current
          debts, obligations and Accounts payable as they become due in
          accordance with such customary business practices ("Current Payment
          Terms"); provided, however, under no circumstances shall the Borrower
          or any Subsidiary of the Borrower, willfully or otherwise, extend,
          modify or change the Current Payment Terms for the purpose of
          redirecting or redeploying cash toward repaying the Revolving Credit
          Outstandings (as defined under the First Lien Credit Agreement) in an
          effort to temporarily inflate Available Credit.

                                        7

<PAGE>

               (l) Section 8.1(f) of the Credit Agreement is hereby amended in
its entirety as follows:

                    (f) Indebtedness arising from intercompany loans (i) from
          the Borrower to any Guarantor, (ii) from any Guarantor to the Borrower
          or any other Guarantor, (iii) from any Non-Guarantor Subsidiary to the
          Borrower or any Guarantor, (iv) from a Brazilian Subsidiary to any
          other Brazilian Subsidiary; provided, however, the aggregate
          outstanding principal amount of all such Indebtedness permitted under
          this clause (iv) and under Section 8.1(k)(iii)(y)(B) shall not exceed
          $10,000,000 or (v) from the Borrower or any Guarantor to any
          Non-Guarantor Subsidiary; provided, however, that, in the case of this
          clause (v), the Investment in such intercompany loan to such
          Non-Guarantor Subsidiary is permitted under Section 8.3(e)(iv)
          (Investments);

               (m) Section 8.1(k) of the Credit Agreement is hereby amended in
its entirety as follows:

                    (k) Indebtedness (not otherwise permitted under this Section
          8.1) (i) incurred in connection with the Brazilian Receivables
          Transactions; provided, however, that the Dollar Equivalent of the
          aggregate outstanding principal amount (or equivalent repurchase
          obligation) of all such Indebtedness incurred pursuant to this clause
          (i) shall not exceed $150,000,000 at any time, (ii) incurred by any
          Material Foreign Subsidiary; provided, however, that the Dollar
          Equivalent of the aggregate outstanding principal amount of all
          Indebtedness permitted under this clause (ii) shall not exceed
          $25,000,000 at any time and (iii) incurred by Tecumseh do Brasil Ltda
          solely for the purpose of (x) paying a dividend to the Borrower or (y)
          making a capital contribution in or a loan to TMT; provided, that, the
          Dollar Equivalent of the aggregate outstanding principal amount of all
          Indebtedness permitted under this clause (iii) shall not exceed (A)
          $25,000,000, in the case of clause (x) above and (B) $10,000,000, in
          the case of clause (y) above; provided, further, the outstanding
          principal amount of all Indebtedness permitted under this clause (iii)
          shall not exceed $25,000,000 at any time.

               (n) Section 8.3 (e)(iv) of the Credit Agreement is hereby amended
by adding the following immediately preceding the semi colon at the end of such
clause (e)(iv):

                    (other than Investments permitted under Section 8.1(f) and
8.1(k))

               (o) Section 8.4(h) of the Credit Agreement is hereby amended in
its entirety to read as follows:

                    (h) the sale of certain Investment Property set forth on
          Schedule 8.4(a) in an aggregate Net Cash Proceeds of which shall not
          exceed $500,000 so long as such sale is consummated on or prior to
          January 1, 2007; and

               (p) Section 8.4 of the Credit Agreement is hereby amended by
deleting the word "add" appearing at the end of clause (h) and inserting "and"
at the end of clause (i) and inserting a new subsection (j) immediately
following the existing subsection (i) to read as follows:

                                        8

<PAGE>

                    (j) as long as no Default or Event of Default is continuing
          or would result therefrom, an Asset Sale for Fair Market Value (i)
          payable in cash or (ii) payable in a combination of cash and other
          consideration; provided, however, (A) at least 85% of all the
          consideration received from such Asset Sale shall be in cash (except
          for Asset Sales of certain Subject Units set forth under clause III on
          Annex A hereto for which the greater of (x) 25% of the total purchase
          price and (y) an amount equal to that portion of the Available Credit
          created solely by the inclusion of the assets comprising the Subject
          Units set forth under clause III on Annex A hereof included in the
          Borrowing Base immediately prior to the consummation of such Asset
          Sale, shall be in cash and the balance of the purchase price shall be
          permitted to be in the form of the assumption of Indebtedness by the
          purchaser of such assets) and (B) the Net Cash Proceeds received from
          such Asset Sale is in an amount sufficient to satisfy the Second Lien
          Obligations, in respect of the Stock or assets of all or any part of
          any entity or combination of parts or entities comprising the Subject
          Units; provided, further, that such Net Cash Proceeds from such sale
          are applied to the Obligations as set forth in, and to the extent
          required by, Section 2.7(b).

               (q) Section 8.7 of the Credit Agreement is hereby amended by
adding the following at the end of clause (a)(i):

               (other than with any other Loan Party),

               (r) Section 8.9 of the Credit Agreement is hereby amended by
deleting the word "and" at the end of clause (e)(i) and inserting "and" at the
end of clause (e)(ii) and inserting a new clause (e)(iii) immediately following
the existing clause (e)(ii) to read as follows:

                    (iii) a Master Global Manufacture and Supply Agreement
          between Tecumseh Power Company and TMT, in connection with the
          restructuring of the TMT Indebtedness, with terms and conditions that
          are as favorable to the Borrower as those that could be obtained in a
          comparable arm's length transaction with a Person not an Affiliate of
          the Borrower.

               (s) Article VIII (Negative Covenants) is hereby amended by
inserting a new Section 8.19 immediately after the existing Section 8.18 to read
as follows:

                    Section 8.19 Permanent Availability Reserve and Additional
          Reserve

                    Neither the Borrower nor any of its Subsidiaries shall
          change or amend the First Lien Credit Agreement for the purposes of
          deleting the definition of "Permanent Availability Reserve" or
          "Additional Reserve" or terminating the applicability of such
          Permanent Availability Reserve or "Additional Reserve" under the First
          Lien Credit Agreement so long as the First Lien Credit Agreement is in
          effect. The Administrative Agent hereby agrees and acknowledges that
          the administrative agent under the First Lien Credit Agreement shall
          have no obligation to hold any Additional Reserve in trust for or for
          the benefit of the Lenders.

               (t) Section 9.1(m) of the Credit Agreement is hereby amended in
its entirety to read as follows:

                                        9

<PAGE>

                    (m) there shall have occurred an "Event of Default" under,
          and as defined in, the First Lien Credit Agreement and such Event of
          Default shall not have been cured or waived for a period of (A) 30
          consecutive days for any "Event of Default" occurring as a result of
          any failure to comply with Section 5.2 (Minimum EBITDA) under, and as
          defined in, the First Lien Credit Agreement and (B) 45 consecutive
          days for any other "Event of Default" under the First Lien Credit
          Agreement, in each case in accordance with the terms of the First Lien
          Credit Agreement.

               (u) Schedule 4.19 to the Credit Agreement is hereby amended by
adding that certain property set forth on Annex C hereto.

               (v) Schedule 8.4(b) to the Credit Agreement is hereby amended by
adding that certain property set forth on Annex D hereto.

               3. CONSENT AND WAIVER. (a) As of the Second Amendment Effective
Date (as defined in Section 4) and until the earlier of (i) ninety (90) days
from the date that TMT has failed to make a payment that is due and payable
under any TMT Debt Document (as in effect on the date hereof) or has otherwise
failed to comply with the terms of any TMT Debt Document (as in effect on the
date hereof), and (ii) the date that any TMT Enforcement Remedy has occurred,
the Administrative Agent and each Lender signatory to an Acknowledgement and
Consent hereby waive any Default or Event of Default under (A) Section 9.1(e)
(Events of Default) arising from TMT's failure to make any payment on any TMT
Indebtedness when the same becomes due and payable, and (B) Section 9.1(f)
(Events of Default) with respect to TMT solely in connection with any Brazilian
Out-of-Court Restructuring or any TMT Debt Document Arbitration Proceeding that
may occur or be instituted.

               (b) Each Lender signatory to an Acknowledgement and Consent
hereby consents to the Borrower's request of a one time extension of the
delivery date of the (x) monthly report solely for the fiscal month of September
2006, due within 30 days after the end of such fiscal month pursuant to Section
6.1(a) (the "September Reporting"), and (y) Borrowing Base Certificate solely
for the fiscal month of September 2006 due no later than 10 Business Days after
the end of such fiscal month pursuant to Section 6.10(a), in each case in clause
(x) and (y) above, to November 14, 2006.

               (c) Each Lender signatory to an Acknowledgement and Consent
hereby waives any Default or Event of Default under (i) Section 5.2 of the
Credit Agreement that may have arisen from the Borrower's expected failure to
meet the minimum EBITDA requirement for the Fiscal Quarter ending September 30,
2006 and which will be reflected in the September Reporting to be delivered to
the Administrative Agent by November 14, 2006, (ii)(A) Section 4.1(b) of the
Credit Agreement that may have arisen due to the Borrower's failure to disclose
the property set forth on Annex C in Schedule 4.19 and (B) Section 4.19(c) and
(iii) Section 6.1(a) of the Credit Agreement that may have arisen due to the
Borrower's failure to deliver the monthly report for the fiscal month of August
2006 at the appropriate delivery date.

               (d) Each Lender signatory to an Acknowledgement and Consent
hereby consents to the terms contained in Amendment No. 2 to the First Lien
Credit Agreement.

                                       10

<PAGE>

               (e) Each Lender signatory to an Acknowledgement and Consent
hereby consents to the terms contained in Amendment No.1 to the Intercreditor
Agreement, in form set forth hereto as Exhibit A.

               4. CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AMENDMENT.
This Amendment shall become effective on the date (the "Second Amendment
Effective Date") when the Administrative Agent shall have received all of the
following, each of which shall be in form and substance satisfactory to the
Administrative Agent:

                    (a) Certain Documents. The Administrative Agent shall have
received each of the following, in form and substance satisfactory to the
Administrative Agent:

                         (i) this Amendment, executed by the Borrower, the
Administrative Agent and the Requisite Lenders;

                         (ii) an Acknowledgment and Consent, in the form set
forth hereto as Exhibit B, duly executed by each of the Requisite Lenders;

                         (iii) the Consent of Guarantors, in the form set forth
hereto as Exhibit C, executed by each Guarantor;

                         (iv) an amendment to the Intercreditor Agreement
substantially in the form of Exhibit A hereto, duly executed and delivered to
the Administrative Agent;

                         (v) written evidence that the Borrower has engaged a
reputable financial advisor, acceptable to the Administrative Agent, to assist
the Borrower and the other Loan Parties on strategic corporate initiatives and
related matters; and

                         (vi) such additional documentation as the
Administrative Agent or the Lenders may reasonably require.

                    (b) Second Amendment Effective Date - First Lien. The Second
Amendment Effective Date (as defined in Amendment No. 2 to the First Lien Credit
Agreement) shall have occurred.

                    (c) Payment of Fees, Costs and Expenses. The Administrative
Agent shall have received payment of all fees, costs and expenses, including,
without limitation, all fees, costs and expenses of the Administrative Agent
(including, without limitation, the reasonable fees and out-of-pocket expenses
of counsel for the Administrative Agent and counsel for the Lenders) in
connection with this Amendment, the Credit Agreement and each other Loan
Document, as required by Sections 8 and 9 hereof.

                    (d) Representations and Warranties. Each of the
representations and warranties contained in Section 5 below shall be true and
correct.

                    (e) No Default or Event of Default. After giving effect to
this Amendment and Amendment No. 2 to the First Lien Credit Agreement, no
Default or Event of Default shall have occurred and be continuing.

                                       11

<PAGE>

               5. REPRESENTATIONS AND WARRANTIES. On and as of the date hereof,
and as of the Second Amendment Effective Date, after giving effect to this
Amendment and Amendment No. 2 to the First Lien Credit Agreement, the Borrower
hereby represents and warrants to the Lenders as follows:

                    (a) Each of the representations and warranties contained in
Article IV of the Credit Agreement, the other Loan Documents or in any
certificate, document or financial or other statement furnished at any time
under or in connection therewith are true and correct in all material respects
on and as of the date as if made on and as of such date, except to the extent
that such representations and warranties specifically relate to a specific date,
in which case such representations and warranties shall be true and correct in
all material respects as of such specific date; and

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

               6. CONTINUING EFFECT; NO OTHER AMENDMENTS. Except as expressly
amended hereby, all of the terms and provisions of the Credit Agreement and the
other Loan Documents are and shall remain in full force and effect. The
amendments and consents contained herein shall not constitute an amendment or a
waiver of any other provision of the Credit Agreement or the other Loan
Documents or for any other purpose except as expressly set forth herein.

               7. LOAN DOCUMENTS. This Amendment is deemed to be a "Loan
Document" for the purposes of the Credit Agreement.

               8. COSTS AND EXPENSES. The Borrower agrees to pay on demand all
reasonable and documented (x) out-of-pocket costs and expenses of the
Administrative Agent in connection with the preparation, execution and delivery
of this Amendment and other instruments and documents to be delivered pursuant
hereto, including the reasonable and documented fees and out-of-pocket expenses
of counsel for the Administrative Agent and counsel for Lenders with respect
thereto and (y) fees and expenses of the Second Lien Advisors; provided, that
from and after the date on which the outstanding principal amount of the Term
Loans has been reduced to an amount equal to or less than $18,300,000, the Loan
Parties shall have no further responsibility or obligation with respect to the
payment of any fees and costs of the Second Lien Advisors.

               9. FEES. As consideration for the execution of this Amendment,
the Borrower agrees to pay to the Administrative Agent, for the account of each
Lender from which the Administrative Agent shall have received (by facsimile or
otherwise) an executed Acknowledgment and Consent with respect to this Amendment
by 5:00 p.m. (New York time) on November 3, 2006, a fee equal to 2.50% of the
outstanding principal amount of the Loans owing to such Lender.

               10. GOVERNING LAW; COUNTERPARTS; MISCELLANEOUS.

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

                    (b) This Amendment may be executed in any number of
counterparts and by the different parties on separate counterparts, each of
which counterparts

                                       12

<PAGE>

when executed and delivered shall be an original, but all of which shall
together constitute one and the same instrument.

                    (c) Section captions used in this Amendment are for
convenience only and shall not affect the construction of this Amendment.

                    (d) From and after the Second Amendment Effective Date, all
references in the Credit Agreement to the "Agreement" shall be deemed to be
references to such Agreement as modified hereby and this Amendment and the
Credit Agreement shall be read together and construed as a single instrument.

                            [signature pages follow]

                                       13

<PAGE>

               IN WITNESS WHEREOF, the undersigned parties have executed this
Amendment No. 2 to the Credit Agreement to be effective for all purposes as of
the Second Amendment Effective Date.

                                        Borrower

                                        TECUMSEH PRODUCTS COMPANY
                                        as Borrower

                                        By: /s/ James S. Nicholson
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title: Vice President, Treasurer and
                                               Chief Financial Officer

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

                                        Administrative Agent

                                        CITICORP USA, INC.,
                                        as Administrative Agent and Collateral
                                        Agent

                                        By: /s/ Sebastien Delasnerie
                                            ------------------------------------
                                        Name: Sebastien Delasnerie
                                        Title: Vice President

                                        Lenders

                                        ABLECO FINANCE LLC,
                                        as Lender, on behalf of itself and its
                                        affiliated assigns

                                        By: /s/ Kevin Genda
                                            ------------------------------------
                                        Name: Kevin Genda
                                        Title: Senior Vice President

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>
*indicates information omitted pursuant to a request for
 confidential treatment and filed separately with the
 Securities and Exchange Commission.
                                                                         ANNEX A

                                  SUBJECT UNITS

I.       *

II.      * and

III.     *

CERTAIN DEFINITIONS RELATING TO DISPOSITION ADJUSTED SET FORTH IN SECTION 5.2

"Reporting Period" has the meaning specified on Annex A.

"Electrical Segment" has the meaning specified on Annex A.

"Engines Segment" has the meaning specified on Annex A.

"Segment" means, individually, each of *, * and * as shown on Annex A.

"Cumulative EBITDA Covenant Adjustment" means, with respect to each Reporting
Period, that number set forth opposite such Reporting Period under the heading
"Cumulative EBITDA Covenant Adjustment" in the chart on Annex A.

"Cumulative Sales Projection" means, with respect to each Reporting Period, that
number set forth opposite such Reporting Period under the heading "Cumulative
Sales Projection" in the chart on Annex A.

"Quarterly Projected EBITDA Covenant" means, with respect to each quarter
specified in the applicable chart on Annex A, that number set forth opposite
such quarter under the heading "Quarterly Projected EBITDA Covenant" in the
chart on Annex A.

"Sales Projection" means, with respect to each quarter specified in the
applicable chart on Annex A, that number set forth opposite such quarter under
the heading "Sales Projection" in the chart on Annex A.

In the event of an Asset Sale of a Subject Unit permitted under Section 8.4(j),
Minimum EBITDA shall be adjusted downward, for each reporting period specified
in Section 5.2 (each a "Reporting Period") (other than Reporting Periods ended
prior to the date of the Asset Sale being examined), by the Cumulative EBITDA
Covenant Adjustment amount set forth opposite each of (x) the Reporting Period
in which the Asset Sale takes place for the applicable Segment below and (y)
each Reporting Period subsequent to the Reporting Period in which the Asset Sale
takes place for the applicable Segment below; provided, however, that

      (A) in the event the subject Asset Sale is of less than the entire
Segment, then the Cumulative EBITDA Covenant Adjustment specified below for each
Reporting Period shall be an amount equal to the product obtained by multiplying
(x) the Cumulative EBITDA Covenant Adjustment specified for such Reporting
Period by (y) a fraction (i) the numerator of which is that portion of the
Segment's Sales Projection attributable to the assets being sold and (ii) the
denominator of which is Sales Projection for the subject Segment set forth
opposite such Reporting Period; and

      (B) shall be further adjusted in accordance with GAAP accounting standards
to reflect the timing of the Asset Sale to reflect the EBITDA contribution to
such Segment's Cumulative EBITDA Covenant Adjustment that was projected for the
Segment (or portion thereof) that was the subject of the Asset Sale as set forth
in the Quarterly Projected EBITDA Covenant table below:

*

<Table>
<Caption>
                                                  CUMULATIVE                      CUMULATIVE SALES
     CUMULATIVE REPORTING                 EBITDA COVENANT ADJUSTMENT                 PROJECTION
            PERIOD                            ($ IN MILLIONS)                    ($ IN MILLIONS)
<S>                                       <C>                                    <C>
     10/01/2006-12/31/06                             *                                  *
      10/01/2006-3/31/07                             *                                  *
      10/01/2006-6/30/07                             *                                  *
      10/01/2006-9/30/07                             *                                  *
       1/1/07-12/31/07                               *                                  *
</Table>

<Table>
<Caption>
                                           QUARTERLY PROJECTED EBITDA
                                                   COVENANT                       SALES PROJECTION
            QUARTER                             ($ IN MILLIONS)                   ($ IN MILLIONS)
<S>                                        <C>                                    <C>
            Q4-2006                                   *                                 *
            Q1-2007                                   *                                 *
            Q2-2007                                   *                                 *
            Q3-2007                                   *                                 *
            Q4-2007                                   *                                 *
</Table>

*

<Table>
<Caption>

                                             CUMULATIVE EBITDA COVENANT
                                                     ADJUSTMENT                  CUMULATIVE SALES PROJECTION
              REPORTING PERIOD                     ($ IN MILLIONS)                     ($ IN MILLIONS)
<S>                                                <C>                                 <C>
            10/01/2006-12/31/06                            *                                   *
            10/01/2006-3/31/07                             *                                   *
            10/01/2006-6/30/07                             *                                   *
            10/01/2006-9/30/07                             *                                   *
              1/1/07-12/31/07                              *                                   *
</Table>

<Table>
<Caption>
                                          QUARTERLY PROJECTED EBITDA
                                                  COVENANT                          SALES PROJECTION
           QUARTER                             ($ IN MILLIONS)                      ($ IN MILLIONS)
<S>                                       <C>                                       <C>
           Q4-2006                                    *                                    *
           Q1-2007                                    *                                    *
           Q2-2007                                    *                                    *
           Q3-2007                                    *                                    *
           Q4-2007                                    *                                    *
</Table>

*:

<Table>
<Caption>
                                                     CUMULATIVE                       CUMULATIVE SALES
                                               EBITDA COVENANT ADJUSTMENT                 PROJECTION
          REPORTING PERIOD                        ($ IN MILLIONS)                     ($ IN MILLIONS)
<S>                                            <C>                                     <C>
        10/01/2006-12/31/06                                *                                   *
        10/01/2006-3/31/07                                 *                                   *
        10/01/2006-6/30/07                                 *                                   *
        10/01/2006-9/30/07                                 *                                   *
          1/1/07-12/31/07                                  *                                   *
</Table>

<Table>
<Caption>
                                        QUARTERLY PROJECTED EBITDA
                                                COVENANT                          SALES PROJECTION
           QUARTER                          ($ IN MILLIONS)                       ($ IN MILLIONS)
<S>                                     <C>                                       <C>
           Q4-2006                                  *                                    *
           Q1-2007                                  *                                    *
           Q2-2007                                  *                                    *
           Q3-2007                                  *                                    *
           Q4-2007                                  *                                    *
</Table>

            [SIGNATURE PAGE TO GUARANTOR CONSENT TO AMENDMENT NO. 2
                        TO FIRST LIEN CREDIT AGREEMENT]

<PAGE>

                                                                         ANNEX B

                        LIST OF BRAZILIAN DEBT DOCUMENTS

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>
TMT Motoco do     Banco Nacional De        BNDES Facility Agreement No. 05.2.0306.1 dated August 12, 2005                 36,803,000
Brasil Ltda       Desenvolvimento
                  Economico E Social -
                  BNDES ("BNDES"),

Unibanco -        Banco Nacional De        Guarantee Letter dated August 22, 2005 (re BNDES Financing Contract                 NIHIL
Uniao De Bancos   Desenvolvimento          No. 05.2.0306.1)
Brasileiros       Economico E Social -
S.A.              BNDES ("BNDES"),

TMT Motoco do     Unibanco - Uniao De      Guarantee Agreement dated August 22, 2005 (re BNDES Financing Contract              NIHIL
Brasil Ltda       Bancos Brasileiros S.A.  No. 05.2.0306.1)

TMT Motoco do     Banco Alfa De            Advance on Export Contract ACC 06/001123 dated 9.5.2006                         1.114.495
Brasil Ltda       Investimento S.A.        Advance on Export Contract ACC 06/001132 dated 10.5.2006                        1.216.821
                                           Advance on Export Contract ACC 06/001292 dated 23.5.2006                        1.777.961
                                           Advance on Export Contract ACC 06/001332 dated 29.5.2006                        3.581.056
                                           Advance on Export Contract ACC 06/001387 dated 7.6.2006                         1.487.333
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>
                                           Advance on Export Contract ACC 06/001388 dated 7.6.2006                         1.775.920
                                           Advance on Export Contract ACC 06/001408 dated 14.6.2006                          150.791
                                           Advance on Export Contract ACC 06/001773 dated 28.8.2006                        2.853.609
                                                                                                                          ==========
                                                                                                                          13,957,986

TMT Motoco do     Banco Bradesco S.A.      Advance on Export Contract ACC 06/005075 dated 30.6.2006                        1.107.708
Brasil Ltda                                Advance on Export Contract ACC 06/005170 dated 30.6.2006                        1.107.214
                                           Advance on Export Contract ACC 06/005231 dated 3.7.2006                           805.555
                                           Advance on Export Contract ACC 06/005452 dated 10.7.2006                        1.591.311
                                           Advance on Export Contract ACC 06/005453 dated 10.7.2006                          651.995
                                           Advance on Export Contract ACC 06/005607 dated 13.7.2006                        1.479.922
                                           Advance on Export Contract ACC 06/006530 dated 9.8.2006                         1.179.705
                                           Advance on Export Contract ACC 06/006531 dated 9.8.2006                           878.737
                                           Advance on Export Contract ACC 06/006532 dated 9.8.2006                           219.684
                                           Advance on Export Contract ACC 06/006649 dated 11.8.2006                          988.201
                                           Advance on Export Contract ACC 06/006650 dated 11.8.2006                          994.789
                                           Advance on Export Contract ACC 06/006778 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006779 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006780 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006781 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006782 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006784 dated 16.8.2006                          219.385
                                           Advance on Export Contract ACC 06/006785 dated 16.8.2006                          329.077
                                           Advance on Export Contract ACC 06/006786 dated 16.8.2006                          219.385
                                           Advance on Export Contract ACC 06/006979 dated 23.8.2006                          328.619
                                           Advance on Export Contract ACC 06/006980 dated 23.8.2006                        1.095.396
                                           Advance on Export Contract ACC 06/006981 dated 23.8.2006                          974.903
                                           Advance on Export Contract ACC 06/007140 dated 28.8.2006                        1.094.305
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>
                                           Advance on Export Contract ACC 06/007141 dated 28.8.2006                          656.583
                                           Advance on Export Contract ACC 06/007559 dated 11.9.2006                          436.499
                                           Advance on Export Contract ACC 06/007561 dated 11.9.2006                          436.499
                                           Advance on Export Contract ACC 06/007562 dated 11.9.2006                          218.250
                                           Advance on Export Contract ACC 06/007563 dated 11.9.2006                        2.149.759
                                           Advance on Export Contract ACC 06/007764 dated 13.9.2006                        4.403.264
                                           Advance on Export Contract ACC 06/074200 dated 14.9.2006                        1.714.276
                                           Advance on Export Contract ACC 06/077936 dated 27.9.2006                        2.819.470
                                                                                                                          ==========
                                                                                                                          29,745,876

TMT Motoco do     HSBC Bank Brasil S.A.    Advance on Export Contract ACC 05/070072 dated 1.11.2005                        7.330.707
Brasil Ltda       - Banco Multiplo         Advance on Export Contract ACC 05/073442 dated 16.11.2005                       4.125.818
                                           Advance on Export Contract ACC 06/031332 dated 25.4.2006                        2.308.042
                                           Advance on Export Contract ACC 06/035254 dated 10.5.2006                        2.328.943
                                           Advance on Export Contract ACC 06/038119 dated 17.5.2006                          445.846
                                           Advance on Export Contract ACC 06/039810 dated 22.5.2006                        1.336.562
                                           Advance on Export Contract ACC 06/049962 dated 22.6.2006                        1.161.796
                                           Advance on Export Contract ACC 06/051829 dated 29.6.2006                        1.225.224
                                           Advance on Export Contract ACC 06/055126 dated 11.7.2006                          773.469
                                           Advance on Export Contract ACC 06/056736 dated 17.7.2006                          145.724
                                           Advance on Export Contract ACC 06/057958 dated 20.7.2006                        1.102.863
                                           Advance on Export Contract ACC 06/057962 dated 20.7.2006                        1.094.040
                                           Advance on Export Contract ACC 06/059007 dated 25.7.2006                        1.295.680
                                           Advance on Export Contract ACC 06/060457 dated 28.7.2006                        1.634.136
                                           Advance on Export Contract ACC 06/062166 dated 3.8.2006                           250.734
                                           Advance on Export Contract ACC 06/063032 dated 7.8.2006                         1.120.984
                                                                                                                          ==========
                                                                                                                          27,680,568
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>
TMT Motoco do     Banco Itau BBA S.A.      Advance on Export Contract ACC 05/018001 dated 6.10.2005                        2.447.495
Brasil Ltda                                Advance on Export Contract ACC 05/018536 dated 17.10.2005                       2.410.372
                                           Advance on Export Contract ACC 05/019934 dated 4.11.2005                          918.237
                                           Advance on Export Contract ACC 05/020684 dated 17.11.2005                       2.522.189
                                           Advance on Export Contract ACC 05/020968 dated 21.11.2005                         687.399
                                           Advance on Export Contract ACC 05/021502 dated 25.11.2005                         916.092
                                                                                                                           =========
                                                                                                                           9,901,784

TMT Motoco do     Banco Itau BBA S.A.      Bank Credit Bills representing Dual Index Loans Contract 106306091100100
Brasil Ltda                                dated 11.9.2006                                                                 8.999.761
                                           Bank Credit Bills representing Dual Index Loans Contract 106306091301500
                                           dated 13.9.2006                                                                 5.364.066
                                           Bank Credit Bills representing Dual Index Loans Contract MC6.63/12
                                           dated 15.9.2006                                                                 1.581.902
                                           Bank Credit Bills representing Dual Index Loans Contract 106306092000100
                                           dated 20.9.2006                                                                 4.678.354
                                           Bank Credit Bills representing Dual Index Loans Contract 106306092200100
                                           dated 22.9.2006                                                                 6.617.995
                                           Bank Credit Bills representing Dual Index Loans Contract EC5.63/01 B
                                           dated 25.9.2006                                                                 1.135.968
                                                                                                                          ==========
                                                                                                                          28,378,046

TMT Motoco do     Banco Safra S.A.         BNDES Facility Agreement 32106591-3 dated                                         412.106
Brasil Ltda                                BNDES Facility Agreement 32108874-3 dated 07.12.2005                              460.138
                                           BNDES Facility Agreement 32108523-0 dated 30.12.2004                              491.226
                                                                                                                          ==========
                                                                                                                           1,363,470

TMT Motoco do     Banco Bradesco S.A.      BNDES Facility Agreement (proposal no 2004018) dated 19.04.2005                49,493,000
Brasil Ltda
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

<TABLE>
<CAPTION>
                                                                                                                         OUTSTANDING
                                                                                                                          PRINCIPAL
                                                                                                                           IN REAIS
     DEBTOR              CREDITOR                                            DOCUMENT                                     (9/30/06)
---------------   ----------------------   ---------------------------------------------------------------------------   -----------
<S>               <C>                      <C>                                                                           <C>

TMT Motoco do     Fleet National Bank      Brazilian Pre-Export Financing Agreement 03/023970 dated 18.6.2003              2.174.207
Brasil Ltda       d.b.a BankBoston, N.A    Brazilian Pre-Export Financing Agreement 03/027035 dated 10.7.2003              2.610.858
                                           Brazilian Pre-Export Financing Agreement 03/031835 dated 8.8.2003               2.590.933
                                           Brazilian Pre-Export Financing Agreement 03/033941 dated 22.8.2003              2.575.366
                                           Brazilian Pre-Export Financing Agreement 04/018926 dated 31.3.2004              3.261.303
                                           Brazilian Pre-Export Financing Agreement 04/026608 dated 6.5.2004               3.660.592
                                                                                                                          ==========
                                                                                                                          16,873,259

TMT Motoco do     Tecumseh do Brasil       Loan Agreement dated June 22, 2004                                             48,798,000
Brasil Ltda       Ltda.
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

                                                                         ANNEX C

                      PROPERTY TO BE ADDED TO SCHEDULE 4.19

<TABLE>
<CAPTION>
                         OWNER/LESSEE
FACILITY                   (LESSOR)                      STREET ADDRESS
--------       --------------------------------   ---------------------------
<S>            <C>                                <C>
Toledo, Ohio   Owner: Tecumseh Products Company   1925 Nebraska Ave., Toledo,
               Lessee: Ice Investments, Inc.      Ohio 43607
</TABLE>

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

                                                                         ANNEX D

                    PROPERTY TO BE ADDED TO SCHEDULE 8.4(b)

16045 Michigan Avenue
New Holstein, WI 53061

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

                                                                       EXHIBIT A

                  AMENDMENT NO.1 TO THE INTECREDITOR AGREEMENT

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

                                                                       EXHIBIT B

                           ACKNOWLEDGEMENT AND CONSENT

To: CITICORP USA, INC., as Administrative Agent
    388 Greenwich Street, 19th Floor
    New York, New York 10013

               RE: TECUMSEH PRODUCTS COMPANY

               Reference is made to the CREDIT AGREEMENT, dated as of February
6, 2006, as amended (as the same may be further amended, supplemented, restated
or otherwise modified from time to time, the "CREDIT AGREEMENT"), among TECUMSEH
PRODUCTS COMPANY, a Michigan corporation (the "BORROWER"), the Lenders and
Issuers party thereto and CITICORP USA, INC. ("CITICORP"), as administrative
agent and collateral agent for the Lenders and the Issuers (in such capacity,
the "ADMINISTRATIVE AGENT"). Unless otherwise specified herein, all capitalized
terms used in this Waiver shall have the meanings ascribed to such terms in the
Credit Agreement.

               The Borrower has requested that the Lenders consent to amend the
Credit Agreement on the terms described in Amendment No. 2 to Second Lien Credit
Agreement (the "AMENDMENT"), the form of which is attached hereto.

               Pursuant to Section 11.1(a) (Amendments, Waivers, Etc.) of the
Credit Agreement, the undersigned Lender hereby consents to the terms of the
Amendment and authorizes the Administrative Agent to execute and deliver the
Waiver on its behalf.

                                        Very truly yours,

                                        ----------------------------------------
                                        [Name of Lender]

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

Dated as of November 3, 2006

       [SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

                                                                       EXHIBIT C

                              CONSENT OF GUARANTORS

                                                    Dated as of November 3, 2006

               Each of the undersigned companies, as a Guarantor under the
Guaranty dated February 6, 2006 (the "Guaranty") in favor of the Secured Parties
under the Credit Agreement referred to in the foregoing Amendment, hereby
consents to such Amendment and hereby confirms and agrees that notwithstanding
the effectiveness of such Amendment, the Guaranty is, and shall continue to be,
in full force and effect and is hereby ratified and confirmed in all respects,
except that, on and after the effectiveness of such Amendment, each reference in
the Guaranty to the "Credit Agreement", "thereunder", "thereof" or words of like
import shall mean and be a reference to the Credit Agreement, as amended by such
Amendment.

                            [Signature pages follow]

<PAGE>

               IN WITNESS WHEREOF, the parties hereto have consented to this
Amendment No. 2, as of the date first written above.

                                        CONVERGENT TECHNOLOGIES INTERNATIONAL,
                                        INC.
                                        TECUMSEH TRADING COMPANY
                                        EVERGY, INC.
                                        FASCO INDUSTRIES, INC.
                                        MANUFACTURING DATA SYSTEMS, INC.
                                        M. P. PUMPS, INC.
                                        TECUMSEH CANADA HOLDING COMPANY
                                        TECUMSEH COMPRESSOR COMPANY
                                        TECUMSEH POWER COMPANY
                                        VON WEISE GEAR COMPANY
                                        as U.S. Guarantors

                                        By:
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title: Vice President and Treasurer

                                        EUROMOTOR, INC.
                                        as U.S. Guarantor

                                        By:
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title: Vice President

                                        HAYTON PROPERTY COMPANY, LLC
                                        TECUMSEH DO BRASIL USA, LLC
                                        as U.S. Guarantors

                                        By:
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title: President

     [SIGNATURE PAGE TO GUARANTOR CONSENT TO AMENDMENT NO. 2 TO SECOND LIEN
                                CREDIT AGREEMENT]

<PAGE>

                                        TECUMSEH PRODUCTS OF CANADA LIMITED,
                                        as Canadian Guarantor

                                        By:
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title:
                                               ---------------------------------

                                        FASCO MOTORS COMPANY,
                                        as Canadian Guarantor

                                        By:
                                            ------------------------------------
                                        Name: James S. Nicholson
                                        Title:
                                               ---------------------------------

     [SIGNATURE PAGE TO GUARANTOR CONSENT TO AMENDMENT NO. 2 TO SECOND LIEN
                                CREDIT AGREEMENT]

<PAGE>

                                                                       EXHIBIT D

                 MASTER GLOBAL MANUFACTURE AND SUPPLY AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]