Document:

SECURITY
      AGREEMENT

     

    dated
      as
      of

     

    September
      28, 2006

     

    among

     

    MANCHESTER
      INC.,

    NICE
      CARS
      ACCEPTANCE ACQUISITIONCO., INC.,

    NICE
      CARS
      OPERATIONS ACQUISITIONCO., INC.,

     

    as
      Guarantors,

     

    THE
      BANK
      OF NEW YORK,

     

    as
      the
      Collateral Agent

     

    and

     

    PALM
      BEACH MULTI-STRATEGY FUND, L.P.,

     

    as
      Lender

     

    
      

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

       

    

    TABLE
      OF CONTENTS

     

    
      	 	 	
              Page

            
	 	 	 
	
              ARTICLE
                I DEFINITIONS

            	
              4

            
	 	 	 
	 	
              SECTION
                1.01

            	
              Definitions

            	
              4

            
	 	
              SECTION
                1.02

            	
              Other
                Definitional Provisions

            	
              6

            
	 	 	 	 
	
              ARTICLE
                II REPRESENTATIONS AND WARRANTIES

            	
              6

            
	 	 
	 	
              SECTION
                2.01

            	
              Representations
                and Warranties of Guarantors

            	
              6

            
	 	 	 	 
	
              ARTICLE
                III COVENANTS

            	
              10

            
	 	 
	 	
              SECTION
                3.01

            	
              Certain
                Affirmative Covenants of Guarantors

            	
              10

            
	 	
              SECTION
                3.02

            	
              Financial
                Covenants

            	
              12

            
	 	
              SECTION
                3.03

            	
              Negative
                Covenants

            	
              12

            
	 	
              SECTION
                3.04

            	
              Covenants
                by Manchester

            	
              13

            
	 	
              SECTION
                3.05

            	
              Covenants
                by NCOC

            	
              13

            
	 	
              SECTION
                3.06

            	
              Financial
                Reports

            	
              13

            
	 	 	 	 
	
              ARTICLE
                IV GUARANTOR ACCOUNTS

            	
              15

            
	 	 
	 	
              SECTION
                4.01

            	
              Guarantor
                Accounts

            	
              15

            
	 	 	 	 
	
              ARTICLE
                V REMEDIES

            	
              15

            
	 	 	 
	 	
              SECTION
                5.01

            	
              Remedies

            	
              15

            
	 	
              SECTION
                5.02

            	
              No
                Waiver

            	
              16

            
	 	
              SECTION
                5.03

            	
              Appointment
                Of Lender As Attorney-In-Fact

            	
              17

            
	 	 	 	 
	
              ARTICLE
                VI EXPENSES AND INDEMNITIES

            	
              18

            
	 	 	 
	 	
              SECTION
                6.01

            	
              Payment
                For Expenses

            	
              18

            
	 	 	 	 
	
              ARTICLE
                VII COLLATERAL AGENT

            	
              18

            
	 	 
	 	
              SECTION
                7.01

            	
              Exculpation,
                Collateral Agent’s Reliance, Etc

            	
              18

            
	 	
              SECTION
                7.02

            	
              Benefit
                of
                Article 7

            	
              19

            
	 	
              SECTION
                7.03

            	
              Resignation
                And Removal Of Collateral Agent

            	
              19

            
	 	
              SECTION
                7.04

            	
              Notice
                of Guarantor Default

            	
              19

            
	 	 	 	 
	
              ARTICLE
                VIII MISCELLANEOUS

            	
              19

            
	 	 
	 	
              SECTION
                8.01

            	
              Notices

            	
              19

            
	 	
              SECTION
                8.02

            	
              Prior
                Agreements Superseded

            	
              19

            
	 	
              SECTION
                8.03

            	
              Parties
                Bound

            	
              20

            
	 	
              SECTION
                8.04

            	
              No
                Third Party Beneficiary

            	
              20

            
	 	
              SECTION
                8.05

            	
              Execution
                In Counterparts

            	
              20

            
	 	
              SECTION
                8.06

            	
              Severability
                Of Provisions

            	
              20

            
	 	
              SECTION
                8.07

            	
              Further
                Instruments

            	
              20

            
	 	
              SECTION
                8.08

            	
              GOVERNING
                LAW

            	
              20

            
	 	
              SECTION
                8.09

            	
              CONSENT
                OF JURISDICTION

            	
              21

            
	 	
              SECTION
                8.10

            	
              WAIVER
                OF JURY TRIAL

            	
              21

            
	 	
              SECTION
                8.11

            	
              TIME
                OF ESSENCE

            	
              21

            

    

     

    Schedule
      I- Chief Executive Office

    
      
        
        

      

      
        i

        
          

        

      

       

    

    SECURITY
      AGREEMENT

     

    THIS
      SECURITY AGREEMENT
      dated as
      of September 28, 2006 (as amended, supplemented or otherwise modified from
      time to time in accordance with the terms hereof, this “Security
      Agreement”)
      is
      made among (1) Manchester Inc., a Nevada corporation (“Manchester”);
      Nice
      Cars Acceptance AcquisitionCo., Inc., a Delaware corporation (“NCAC”),
      and
      Nice Cars Operations AcquisitionCo., Inc., a Delaware corporation (“NCOC”)
      (together, the “Guarantors”,
      and
      each,
      a “Guarantor”),
      (2)
      The Bank Of New York as collateral agent for the Secured Parties (in
      such
      capacity, the “Collateral
      Agent”)
      and
      (3) Palm Beach Multi-Strategy Fund, L.P. (the “Lender”).

     

    WITNESSETH:

     

    WHEREAS,
      the
      Guarantors have executed that certain Guaranty (the “Guaranty”)
      dated
      the date hereof in favor of the Lender in respect of certain obligations of
      Nice
      Cars Funding LLC (the “Borrower”)
      under
      that certain Loan and Security Agreement (the “Loan
      Agreement”)
      dated
      the date hereof between the Borrower and Lender, and the other Loan Documents
      (as defined in the Loan Agreement), and in respect of certain obligations of
      the
      Guarantors under the Sale and Security Agreement (as defined in the Loan
      Agreement) and the other Loan Documents;

     

    WHEREAS,
      it is a
      condition precedent to the Lender making advances to the Borrower under the
      Loan
      Agreement that the Guarantors have executed and delivered this Security
      Agreement as security for the Guarantors’ obligations under the
      Guaranty;

     

    WHEREAS,
      each
      Guarantor is duly authorized to execute and deliver this Security Agreement.
      All
      agreements made by each Guarantor herein are for the benefit and security of
      the
      Secured Parties and the Collateral Agent. Each Guarantor is entering into this
      Security Agreement, and the Collateral Agent is accepting the grants created
      hereby, for good and valuable consideration, the receipt and sufficiency of
      which are hereby acknowledged; and

     

    WHEREAS,
      all
      things necessary to make this Security Agreement a valid, binding and legal
      obligation of each Guarantor, in accordance with the terms of this Security
      Agreement, have been done and performed and have happened.

     

    GRANTING
      CLAUSE

     

    NOW,
      THEREFORE, THIS SECURITY AGREEMENT WITNESSETH, that, to secure the prompt and
      complete payment of all Secured Guaranty Obligations and the performance and
      observance by each Guarantor of all the agreements, covenants and provisions
      contained in the Guaranty for the benefit of the Lender, and in consideration
      of
      the premises and of the covenants herein contained, each Guarantor does hereby
      grant, bargain, sell, assign, transfer, convey, mortgage, pledge and confirm,
      to
      the Collateral Agent and its successors and assigns, for the security and
      benefit of the Lender, a first priority security interest in and mortgage Lien
      on all estate, right, title and interest of such Guarantor in, to and under
      all
      personal property of any kind or description whatsoever, wherever located,
      whether now owned or hereafter acquired, tangible or intangible, including
      (i)
      all Accounts, Chattel Paper, Commercial Tort Claims, copyrights, Documents,
      Equipment, Financial Assets, Fixtures, General Intangibles, Goods, Guarantor
      Accounts, Instruments, Inventory, Investment Property, Letter-of-Credit Rights
      (and all letters of credit), money, Supporting Obligations and the Intellectual
      Property Collateral and (ii) without limiting the foregoing, the following
      described properties, rights, interests and privileges whether now owned or
      hereafter acquired:

    
      
        
        

      

      
        -1-

        
          

        

      

       

    

     

    1. The
      Acquisition Agreements, including, without limitation, (i) any and all rights
      of
      any Guarantor to receive moneys under or pursuant to the Acquisition Agreements,
      (ii) any and all claims of any Guarantor for damages under or in respect of
      the
      Acquisition Agreements including, without limitation, any and all claims arising
      under any warranty or indemnity provision contained in the Acquisition
      Agreements, and (iii) any and all rights of any Guarantor to compel performance
      of the Acquisition Agreements;

     

    2. All
      rights of the Guarantors under the Loan Documents to which they are a party
      (other than the Guaranty and this Agreement);

     

    3. The
      membership interests, shares, stock and other equity interests (the
“Equity
      Interests”)
      of
      each and any direct and indirect subsidiary of each Guarantor (each, a
“Equity
      Interest”),
      all
      certificates (if any) representing or evidencing such Equity Interests, and
      all
      of the rights of the applicable member or stockholder under the related
      constitutional documents, and all present and future rights of the applicable
      member to receive payment of money or other distributions, dividends or payments
      arising out of or in connection with such Equity Interests and its rights under
      such constitutional documents;

     

    4. All
      debt
      securities, indebtedness and liabilities now or hereafter issued to, owed to
      or
      held by any Guarantor,
      in each
      case whether direct or indirect, joint or several, absolute or contingent,
      liquidated or unliquidated
      and
      whether now or hereafter outstanding,
      together
      with all
      certificates, promissory notes, Instruments, Chattel Paper
      or other
      documents representing or evidencing any of the foregoing (collectively, the
      “Pledged
      Debt Interests”);

     

    5. Each
      Guarantor Account, all security entitlements with respect to all Financial
      Assets credited from time to time to the Guarantor Accounts, all dividends,
      distributions, return of capital, interest, Cash, Instruments and other property
      from time to time received, receivable or otherwise distributed in respect
      of or
      in exchange for any or all of such security entitlements or such Financial
      Assets and all subscription warrants, rights or options issued thereon or with
      respect thereto, and all certificates and Instruments, if any, from time to
      time
      representing or evidencing the Guarantor Accounts;

     

    6. All
      Accounts, Chattel Paper, Instruments, General Intangibles and other obligations
      of any kind, whether or not arising out of or in connection with the sale or
      lease of Goods or the rendering of services and whether or not earned by
      performance, and all rights now or hereafter existing in and to all security
      agreements, leases, charters and other contracts securing or otherwise relating
      to any such Accounts, Chattel Paper, Instruments, General Intangibles or
      obligations;

     

    7. All
      rents, issues, profits, revenues, insurance or requisition proceeds and other
      income of the property subjected or required to be subjected to the Lien of
      this
      Security Agreement and all other property of the Guarantors, whether tangible
      or
      intangible, now owned or hereafter acquired; and

    
      
        
        

      

      
        -2-

        
          

        

      

       

    

     

    together
      with, to the extent not otherwise included above, all Proceeds and products
      of
      any and all of the foregoing (or of such Proceeds and products). All of the
      foregoing is collectively referred to herein as the “Guaranty
      Collateral”.

     

    HABENDUM
      CLAUSE

     

    TO
      HAVE
      AND TO HOLD all and singular the aforesaid property unto the Collateral Agent,
      its successors and assigns, in trust, for the benefit and security of the
      Lender, and for the uses and purposes and subject to the terms and provisions
      set forth in this Security Agreement.

     

    It
      is
      expressly agreed that anything herein contained to the contrary notwithstanding,
      each Guarantor shall remain liable under each of the agreements and contracts
      included in the Guaranty Collateral to which such Guarantor is a party (the
      “Collateral
      Documents”)
      and to
      perform all of the obligations assumed by such Guarantor thereunder, all in
      accordance with and pursuant to the terms and provisions thereof, and that
      the
      Collateral Agent and the Secured Parties shall have no obligation or liability
      under any thereof by reason of or arising out of the assignment hereunder,
      nor
      shall any of the Secured Parties be required or obligated in any manner to
      perform or fulfill any obligations of any Guarantor under or pursuant to any
      of
      the Collateral Documents, except as herein expressly provided, to make any
      payment, to make any inquiry as to the nature or sufficiency of any payment
      received by it or present or file any claim, or take any action to collect
      or
      enforce the payment of any amounts which may have been assigned to it or to
      which it may be entitled at any time or times.

     

    Each
      Guarantor does hereby constitute the Collateral Agent the true and lawful
      attorney of such Guarantor, irrevocably, with full power (in the name of such
      Guarantor or otherwise) to ask, require, demand, receive, compound and give
      acquittance for any and all monies and claims for monies (in each case including
      insurance and requisition proceeds) due and to become due under or arising
      out
      of the Collateral Documents and all other property which now or hereafter
      constitutes part of the Guaranty Collateral, to endorse any checks or other
      Instruments or orders in connection therewith and to file any claims or to
      take
      any action or to institute any proceedings which the Collateral Agent may deem
      to be necessary or advisable in the premises. 

     

    Each
      Guarantor agrees that at any time and from time to time, upon the written
      request of the Collateral Agent, such Guarantor will promptly and duly execute
      and deliver or cause to be duly executed and delivered any and all such further
      instruments and documents as the Collateral Agent may reasonably deem desirable
      in obtaining the full benefits of the assignment hereunder and of the rights
      and
      powers granted herein.

     

    Each
      Guarantor does hereby warrant and represent that it has not assigned or pledged,
      and hereby covenants that it will not assign or pledge, so long as this Security
      Agreement shall remain in effect and shall not have been terminated pursuant
      to
      its terms, any of its estate, right, title or interest hereby assigned, to
      anyone other than the Collateral Agent, and that, with respect to such right,
      title and interest hereby assigned, it will not, except as expressly provided
      in
      this Security Agreement and the Guaranty, (i) enter into any agreement amending
      or supplementing any of the Collateral Documents, (ii) execute any waiver or
      modification of, or consent under, the terms of any of the Collateral Documents,
      (iii) settle or compromise any claim arising under any of the Collateral
      Documents, or (iv) submit or consent to the submission of any dispute,
      difference or other matter arising under or in respect of any of the Collateral
      Documents to arbitration thereunder.

    
      
        
        

      

      
        -3-

        
          

        

      

       

    

     

    Each
      Guarantor does hereby agree that it will not take or omit to take any action,
      the taking or omission of which might result in an alteration or impairment
      of
      any of the Collateral Documents or of any of the rights created by any thereof
      or the assignment hereunder.

     

    It
      is
      hereby further agreed that any and all property described or referred to in
      the
      Granting Clause hereof which is hereafter acquired by any Guarantor shall
ipso facto,
      and
      without any other conveyance, assignment or act on the part of such Guarantor
      or
      the Collateral Agent, become and be subject to the Lien herein granted as fully
      and completely as though specifically described herein, but nothing contained
      in
      this paragraph shall be deemed to modify or change the obligations of such
      Guarantor contained in the foregoing paragraphs.

     

    IT
      IS
      HEREBY COVENANTED AND AGREED by and between the parties hereto as
      follows:

     

    ARTICLE
      I

     

    DEFINITIONS

     

    SECTION
      1.01 Definitions.
      For all
      purposes of this Agreement, (a) terms capitalized herein that are not defined
      herein shall have the meanings given to them in the Guaranty or the Loan
      Agreement and (b) the following terms which are defined in the UCC are used
      herein as so defined: Accounts, Cash, Chattel Paper, Commercial Tort Claim,
      Deposit Account, Document, Equipment, Financial Assets, Fixtures, General
      Intangible, Goods, Instrument, Inventory, Investment Property, Letter-of-Credit
      Right, letter of credit, money, Proceeds, promissory note, Securities Account
      and Supporting Obligation. 

     

    In
      addition, the following terms shall have the meaning herein
      specified:

     

    “Acquisition
      Agreements”
means
      the (i) Share Purchase and Exchange Agreement, dated the date hereof, among
      Manchester, NCAC, Nice Cars Capital Acceptance Corporation, a Georgia
      corporation (“NCCAC”) and the shareholders of NCCAC, (ii) the Share Purchase and
      Exchange Agreement, dated the date hereof, among Manchester, NCOC, Nice Cars,
      Inc., a Georgia corporation (“NCI”) and the shareholders of NCI, and (iii) the
      Employment Agreements, dated the date hereof, between Manchester and each of
      Raymond A. Lyle, Victoria E. Lyle, Robert Lyle, Raymond A. Lyle,
      II and Ginger Bond.

     

    “Guarantor
      Accounts”
means
      all accounts of the Guarantors (except the Blocked Account) as of the date
      hereof with any bank or financial institution, details of which have been given
      to Lender.

     

    “Guarantor
      Account Control Agreements”
means
      the account control agreements entered into in accordance with Section 4.01
      hereof.

    
      
        
        

      

      
        -4-

        
          

        

      

       

    

     

    “Guarantor
      Default”
means
      any breach by any Guarantor of any of its obligations, covenants or agreements
      under the Guaranty or this Agreement, or any event which with the passage of
      time or notice or both would constitute such a breach.

     

    “Intellectual
      Property Collateral”
means,
      collectively, (a)(i) all computer and other electronic data processing hardware,
      (ii) all software programs, (iii) all firmware associated therewith, (iv) all
      documentation with respect to such hardware, software and firmware described
      in
      the preceding clauses (i) through (iii) and (v) all rights with respect to
      all
      of the foregoing, (b) all copyrights of each Guarantor and all applications
      for
      registration thereof, (c)(i) all letters patent and applications for letters
      patent throughout the world, (ii) all patent licenses of each Guarantor, (iii)
      all reissues, divisions, continuations, continuations-in-part, extensions,
      renewals and reexaminations of any of the items described in the preceding
      clauses (i) and (ii), and (iii) all proceeds of, and rights associated with,
      the
      foregoing, (d) all trademarks, trade names, corporate names, company names,
      business names, fictitious business names, trade styles, service marks,
      certification marks, collective marks, logos, other source of business
      identifiers, prints and labels on which any of the foregoing have appeared
      or
      appear, designs and General Intangibles of a like nature, in each case, of
      the
      Guarantor and (e) common law and statutory trade secrets and all other
      confidential or proprietary or useful information and all know-how obtained
      by
      or used in or contemplated at any time for use in the business of the Guarantor.
      

     

    “Interest
      Coverage Ratio”
shall
      mean the fraction, expressed as a ratio, the numerator of which shall be
      (i) the consolidated interest income of NCAC and NCOC according to GAAP and
      the denominator of which shall be (ii) the consolidated interest expense of
      NCAC and NCOC according to GAAP.

     

    “Leverage
      Ratio”
means,
      the fraction, expressed as a ratio, the numerator of which is equal to
      (i) (a) the consolidated liabilities of NCAC and NCOC according to
      GAAP, less (b) any consolidated subordinate debt of NCAC and NCOC according
      to GAAP, and the denominator of which is equal to (ii) (x) the
      Tangible Net Worth, plus (y) any consolidated subordinate debt of NCAC and
      NCOC according to GAAP.

     

    “Secured
      Guaranty Obligations”
means
      all obligations and liabilities of the Guarantors under the
      Guaranty.

     

    “Servicer
      Termination Event”
shall
      have the meaning given to that term in the Sale and Servicing
      Agreement.

     

    “Tangible
      Net Worth”
means
      (i) the consolidated stockholders’ equity of NCAC and NCOC according to
      GAAP, less (ii) any intangible assets of NCAC and NCOC according to
      GAAP.

     

    “UCC”
means
      the Uniform Commercial Code as in effect from time to time in the State of
      New
      York; provided
      that if
      by reason of mandatory provisions of law, the perfection or the effect of
      perfection or non-perfection of the security interest in any item or portion
      of
      the Guaranty Collateral is governed by the Uniform Commercial Code as in effect
      in a jurisdiction other than the State of New York, “UCC” shall mean the Uniform
      Commercial Code as in effect in such other jurisdiction for purposes of the
      provisions hereof relating to such perfection or effect of perfection or
      non-perfection.

    
      
        
        

      

      
        -5-

        
          

        

      

       

    

     

    SECTION
      1.02 Other
      Definitional Provisions.
      The
      definitions of terms herein shall apply equally to the singular and plural
      forms
      of the terms defined. Whenever the context may require, any pronoun shall
      include the corresponding masculine, feminine and neuter forms. The words
“include”, “includes” and “including” shall be deemed to be followed by the
      phrase “without limitation”. The word “will” shall be construed to have the same
      meaning and effect as the word “shall”. Unless the context requires otherwise
      (a) any definition of or reference to any agreement, instrument or other
      document herein shall be construed as referring to such agreement, instrument
      or
      other document as from time to time amended, supplemented or otherwise modified
      (subject to any restrictions on such amendments, supplements or modifications
      set forth herein), (b) any reference herein to any Person shall be construed
      to
      include such Person’s successors and assigns, (c) any reference to any statute
      or act shall include all related current regulations and all amendments and
      any
      successor statutes, acts and regulations (and any reference to any statute
      or
      act, without additional reference, shall be deemed to refer to federal statutes
      and acts of the United States), (d) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this
      Agreement in its entirety and not to any particular provision hereof, (e) all
      references herein to Articles, Sections, Exhibits and Schedules shall be
      construed to refer to Articles and Sections of, and Exhibits and Schedules
      to,
      this Agreement and (f) the words “asset” and “property” shall be construed to
      have the same meaning and effect and to refer to any and all tangible and
      intangible assets and properties, including money, Securities, Accounts and
      contract rights. 

     

    ARTICLE
      II

     

    REPRESENTATIONS
      AND WARRANTIES

     

    SECTION
      2.01 Representations
      and Warranties of Guarantors.
      The
      Guarantors jointly and severally represent and warrant as follows:

     

    (a) Each
      Guarantor is a corporation duly incorporated, validly existing and in good
      standing under the laws of the state of its incorporation, is duly qualified
      to
      do business and is in good standing as a foreign corporation in all states
      where
      such qualification is required, has all necessary corporate power and authority
      to enter into this Agreement and each of the other Loan Documents to which
      it is
      a party and to perform all of its obligations hereunder and
      thereunder.

     

    (b) Each
      Guarantor operates its business only under the assumed names listed on Schedule
      5.1(b) of Schedule A attached to the Loan Agreement.

     

    (c) Each
      Guarantor has all requisite right and power and is duly authorized and empowered
      to enter into, execute, deliver and perform this Agreement and each other Loan
      Document to which it is a party and this Agreement and each other Loan Document
      to which it is a party are the legal, valid and binding obligations of such
      Guarantor and are enforceable against such Guarantor in accordance with their
      terms.

     

    
      
        
        

      

      
        -6-

        
          

        

      

       

    

     

    (d) The
      execution, delivery and performance by each Guarantor of this Agreement and
      the
      other Loan Documents to which it is a party does not and shall not (i) violate
      any provision of any Law, order, writ, judgment, injunction, decree,
      determination or award presently in effect having applicability to such
      Guarantor; (ii) violate any provision of its charter documents or bylaws; or
      (iii) result in a breach of or constitute a default under any indenture or
      loan
      or credit agreement or any other agreement, lease or instrument to which such
      Guarantor is a party or by which it or any of its assets or properties may
      be
      bound or affected; and no Guarantor is in default of any such Law, order, writ,
      judgment, injunction, decree, determination or award or any such indenture,
      agreement, lease or instrument.

     

    (e) No
      consent, approval, license, exemption of or filing or registration with, giving
      of notice to, or other authorization of or by, any court, administrative agency
      or other governmental authority is or shall be required in connection with
      the
      execution, delivery or performance by any Guarantor of this Agreement or any
      other Loan Document for the valid consummation of the transactions contemplated
      hereby or thereby.

     

    (f) No
      event
      has occurred and is continuing which constitutes a Guarantor Default. There
      is
      no action, suit, proceeding or investigation pending or threatened against
      or
      affecting any Guarantor before or by any court, administrative agency or other
      governmental authority that brings into question the validity of the
      transactions contemplated hereby, or that might result in any Material Adverse
      Effect. 

     

    (g) No
      Guarantor is in default in the payment of any taxes levied or assessed against
      it or any of its assets or properties, except for taxes being contested in
      good
      faith and by appropriate proceedings and for which adequate reserves have been
      made.

     

    (h) Each
      Guarantor has good and marketable title to its assets and properties as
      reflected in its financial statements furnished to Lender.

     

    (i) Each
      of
      the financial statements furnished to Lender by the Guarantors was prepared
      in
      accordance with GAAP and fairly and accurately reflects their financial
      condition as of the date thereof; and each Guarantor hereby certifies that
      there
      have been no Material Adverse Effects, since the date of such statements, and
      there are no known contingent liabilities not provided for or disclosed in
      such
      statements.

     

    (j) Neither
      this Agreement, the Guaranty or any statement or document referred to herein
      or
      delivered to any Secured Party or the Custodian by any Guarantor contains any
      untrue statement of a material fact or omits to state a material fact necessary
      to make the statements made herein or therein not misleading.

     

    (k) The
      Guarantors have good, indefeasible and merchantable title to and ownership
      of
      the Guaranty Collateral, free and clear of all Liens, except those of the
      Collateral Agent for the benefit of Lender.

     

    (l) All
      books, records and documents relating to the Guaranty Collateral are and shall
      be genuine and in all respects what they purport to be.

    
      
        
        

      

      
        -7-

        
          

        

      

       

    

     

    (m) Each
      place of business of each Guarantor is only at the locations set forth in
      Section 5.1(n) of Schedule A attached to the Loan Agreement. No Guarantor shall
      begin or do business (either directly or through subsidiaries) at other
      locations or cease to do business at any of the above locations or at
      Guarantor’s principal place of business without first notifying
      Lender.

     

    (n) The
      present value of all benefits vested under all Plans of the Guarantors or any
      Commonly Controlled Entity (based on the assumptions used to fund the Plans)
      did
      not, as of the last annual valuation date (which in case of any Plan was not
      earlier than December 31, 1982) exceed the value of the assets of the Plans
      applicable to such vested benefits.

     

    (o) The
      liability to which any Guarantor or any Commonly Controlled Entity would become
      subject under Sections 4063 or 4064 of ERISA if such Guarantor or any Commonly
      Controlled Entity were to withdraw from all Multi-employer Plans or if such
      Multi- employer Plans were to be terminated as of the valuation date most
      closely preceding the date hereof, is not in excess of One Thousand Dollars
      ($1,000.00);

     

    (p) No
      Guarantor is engaged nor shall it engage, principally or as one of its important
      activities, in a business of extending credit for the purpose of “purchasing” or
“carrying” any “margin stock” within the respective meanings of each of the
      quoted terms under Regulations G or X of the Board of Governors of the
      Federal Reserve System as now and from time to time hereafter in effect. No
      part
      of the proceeds of any advances hereunder shall be used for “purchasing” or
“carrying” “margin stock” as so defined or for any purpose which violates, or
      which would be inconsistent with, the provisions of the Regulations of such
      Board of Governors. If requested by Lender, each Guarantor shall furnish to
      Lender a statement in conformity with the requirement of Federal Reserve Form
      G-3 referred to in said Regulation G to the foregoing effect. All of the
      outstanding securities of each Guarantor have been offered, issued, sold and
      delivered in compliance with, or are exempt from, all federal and state laws
      and
      rules and regulations of federal and state regulatory bodies governing the
      offering, issuance, sale and delivery of securities. 

     

    (q) No
      Guarantor is an “investment company” or a company “controlled” by an “investment
      company,” within the meaning of the Investment Company Act of 1940, as
      amended.

     

    (r) To
      the
      best of each Guarantor’s knowledge, the land and improvements owned or leased by
      each Guarantor for use in its business operations (including the locations
      listed in Section 5.1(n) of Schedule A of the Loan Agreement) are free of
      dangerous levels of contaminates, oils, asbestos, radon, PCB’s, hazardous
      substances or waste as defined by federal, state or local environmental laws,
      regulations or administrative orders or other materials, the removal of which
      is
      required or the maintenance of which is prohibited, regulated or penalized
      by
      any federal, state or local governmental authority.

     

    (s) Each
      Guarantor is solvent, generally able to pay its obligations as they become
      due,
      has sufficient capital to carry on its business and transactions and all
      businesses and transactions in which it intends to engage, and the current
      value
      of each Guarantor’s assets, at fair saleable valuation, exceeds the sum of its
      liabilities. No Guarantor shall be rendered insolvent by the execution and
      delivery of this Agreement and the other Loan Documents and the consummation
      of
      the transactions contemplated hereby and thereby and the capital remaining
      in
      each Guarantor is not now and shall not foreseeably become unreasonably small
      to
      permit such Guarantor to carry on its business and transactions and all
      businesses and transactions in which it is about to engage. No Guarantor intends
      to, nor does it reasonably believe it shall, incur debts beyond its ability
      to
      repay the same as they mature.

    
      
        
        

      

      
        -8-

        
          

        

      

       

    

     

    (t) The
      Collateral Agent for the benefit of Lender has a perfected first priority
      security interest in favor of the Collateral Agent for the benefit of Lender
      in
      all of the Guarantors’ respective right, title and interest in the Guaranty
      Collateral, prior and superior to any other Lien, except any statutory or
      constitutional lien for taxes not yet due and payable.

     

    (u) There
      are
      no material actions, suits or proceedings pending, or threatened against or
      affecting the assets of any Guarantor or the consummation of the transactions
      contemplated hereby, at law, or in equity, or before or by any governmental
      authority or instrumentality or before any arbitrator of any kind. No Guarantor
      is subject to any judgment, order, writ, injunction or decree of any court
      or
      governmental agency. There is not a reasonable likelihood of an adverse
      determination of any pending proceeding which would, individually or in the
      aggregate, have a Material Adverse Effect.

     

    (v) Section
      5.1(x) of Schedule A attached to the Loan Agreement correctly and completely
      sets forth for each Guarantor (i) its full legal name and state of organization,
      (ii) its Federal Tax Identification Number; (iii) its chief executive office,
      (iv) all prior names used in the last five (5) years (including, without
      limitation, such Guarantor’s predecessors in interest as a result of a merger or
      consolidation) and (v) the charter or other similar number for such Guarantor
      in
      its state of organization.

     

    (w) No
      Guarantor (i) is a person whose property or interest in property is blocked
      or
      subject to blocking pursuant to Section 1 of Executive Order 13224 of September
      23, 2001 Blocking Property and Prohibiting Transactions With Persons Who Commit,
      Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii)
      engages in any dealings or transactions prohibited by Section 2 of such
      executive order, or is otherwise associated with any such person in any manner
      violative of Section 2, or (iii) is a Person on the list of Specially Designated
      Nationals and Blocked Persons or subject to the limitations or prohibitions
      under any other U.S. Department of Treasury’s Office of Foreign Assets Control
      regulation or executive order.

     

    (x) Each
      Guarantor is in compliance with the Patriot Act. No part of the proceeds of
      any
      of the Loans will be used, directly or indirectly, for any payments to any
      governmental official or employee, political party, official of a political
      party, candidate for political office, or anyone else acting in an official
      capacity, in order to obtain, retain or direct business or obtain any improper
      advantage, in violation of the United States Foreign Corrupt Practices Act
      of
      1977, as amended.

     

    
      
        
        

      

      
        -9-

        
          

        

      

       

    

     

    (y) This
      Security Agreement constitutes the legal, valid and binding obligations of
      each
      Guarantor enforceable in accordance with its terms, except as the enforceability
      thereof may be limited by applicable bankruptcy, insolvency, reorganization,
      moratorium or similar laws affecting the enforcement of creditors’ rights
      generally, by general equitable principles (whether enforcement is sought by
      proceedings in equity or at law) and an implied covenant of good faith and
      fair
      dealing.

     

    (z) No
      Guarantor has any Deposit Accounts, Securities Accounts, collateral accounts
      or
      any other accounts with any Person other than the Guarantor Accounts
      (collectively, the “Other
      Accounts”).
      

     

    ARTICLE
      III

     

    COVENANTS

     

    SECTION
      3.01 Certain
      Affirmative Covenants of Guarantors.
      So long
      as any of the Secured Guaranty Obligations remain outstanding or any obligations
      of the Lender under the Loan Agreement shall remain outstanding, the Guarantors
      hereby jointly and severally agree and covenant that each Guarantor
      shall:

     

    (a) Pay
      or
      cause to be paid currently all of its expenses, including all payments on its
      obligations whenever due, as well as all payments of any and all taxes of
      whatever nature when due. This provision shall not apply to taxes or expenses
      which are due, but which are challenged in good faith and for which adequate
      reserves have been established.

     

    (b) Maintain,
      preserve, and protect the Guaranty Collateral. 

     

    (c) Furnish
      to Secured Parties prompt written notice as to the occurrence of any Guarantor
      Default hereunder or Servicer Termination Event or any event which with the
      passage of time or the giving of notice would become a Servicer Termination
      Event.

     

    (d) Carry
      on
      and conduct its business in the same manner and in the same fields of enterprise
      as it is presently engaged, and shall preserve its existence, licenses or
      qualifications as a domestic corporation in the state of its incorporation
      and
      as a foreign organization in every jurisdiction in which the character of its
      assets or properties or the nature of the business transacted by it at any
      time
      makes qualification as a foreign organization necessary, and to maintain all
      other material organizational rights and franchises. 

     

    (e) Comply
      and cause each of the Guarantors to comply with all statutes, governmental
      rules
      and regulations applicable to them and their business (including, without
      limitation, applicable usury and consumer Laws). 

     

    (f) Permit
      and authorize Secured Parties and allow Secured Parties to access, without
      notifying any Guarantor, (i) to make such inquiries or investigation through
      business credit, other credit reporting services or other sources concerning
      any
      Guarantor as any Secured Party, in its sole discretion, shall deem appropriate
      and (ii) to inspect, audit and examine the Guaranty Collateral at the premises
      of Guarantors.

    
      
        
        

      

      
        -10-

        
          

        

      

       

    

     

    (g) Provide
      each Secured Party sixty (60) days prior written notice of any Guarantor
      initiating any activities in any state other than the then-Approved
      States.

     

    (h) Provide
      Lender with evidence of such Guarantor’s insurance (including, without
      limitation, property damage and liability insurance) issued by a reputable
      carrier, as required by Lender (which insurance shall be in such amounts and
      cover such risks as is satisfactory to Lender and shall include without
      limitation, Director and Officer insurance, Errors and Omissions insurance
      and
      Fidelity insurance). This insurance shall reflect the Collateral Agent for
      the
      benefit of Lender as the loss payee or additional insured, as required by
      Lender, and contain a provision that the Collateral Agent for the benefit of
      Lender shall be notified by the carrier thirty (30) days prior to the
      termination or cancellation of any such insurance.

     

    (i) promptly
      notify Lender and the Collateral Agent in writing of:

     

    (i) the
      occurrence of any Material Adverse Effect;

     

    (ii) the
      acceleration of the maturity of any indebtedness owed by any Guarantor, or
      any
      default by any Guarantor under any indenture, mortgage, agreement, contract
      or
      other instrument to which any of them is a party or by which any of them or
      any
      of their properties is bound;

     

    (iii) the
      filing of any suit or proceeding against any Guarantor.

     

    Upon
      the
      occurrence of any of the foregoing, the Guarantors will take all necessary
      or
      appropriate steps to remedy promptly any such Material Adverse Effect,
      acceleration, default, to protect against any such adverse claim, to defend
      any
      such suit or proceeding, and to resolve all controversies on account of any
      of
      the foregoing. 

     

    (j) Perform
      its obligations and undertakings hereunder and pursuant to the other Loan
      Documents.

     

    (k) Contemporaneously
      herewith and from time to time hereafter, deliver to the Collateral Agent
      possession all originals of all negotiable Documents and Instruments and Chattel
      Paper and promissory notes currently owned or held by such Guarantor and
      representing or evidencing any indebtedness (duly endorsed in
      blank).

     

    (l) If
      at any
      time any Guarantor shall acquire or otherwise have rights with respect to a
      Commercial Tort Claim which such Guarantor reasonably believes, based upon
      then-current information, is likely to result in a judgment in favor of such
      Guarantor in excess of $250,000, it shall promptly notify the Lender and the
      Collateral Agent thereof in a writing (such writing to be in form and substance
      satisfactory to the Lender and the Collateral Agent) signed by it containing
      brief details thereof to the Collateral Agent and take such other actions as
      necessary or desirable or reasonably requested by the Collateral Agent or the
      Lender to grant and perfect a Lien in such Commercial Tort Claim in favor of
      the
      Collateral Agent for the benefit of the Lender.

    
      
        
        

      

      
        -11-

        
          

        

      

       

    

     

    (m) During
      the term of this Agreement and so long as any of the Indebtedness remains
      unpaid, maintain a modern system of accounting in accordance with GAAP or other
      systems of accounting acceptable to Lender. For the purpose of determining
      compliance with the covenants and representations in the Loan Documents, Lender
      shall have the right to recast any financial statement or report presented
      to
      Lender by or on behalf of any Guarantor to comply with GAAP.

     

    SECTION
      3.02 Financial
      Covenants.
      Manchester, NCAC and NCOC jointly and severally undertake and covenant with
      the
      Lender that (i) the Leverage Ratio shall not exceed 5:1 on any date of
      determination; (ii) the Tangible Net Worth shall not be less than
      $18,000,000 on any date of determination, (iii) the Interest Coverage Ratio
      shall not exceed 1.5:1 on any date of determination and (iv) the
      consolidated net income of NCAC and NCOC determined in accordance with GAAP
      for
      every period of one calendar month shall exceed $1.00 (one dollar).

     

    SECTION
      3.03 Negative
      Covenants.
      So long
      as any of the Secured Guaranty Obligations remain outstanding or any obligations
      of the Lender under the Loan Agreement shall remain outstanding, the Guarantors
      hereby jointly and severally agree and covenant that no Guarantor shall, without
      the Lender’s prior written consent , do any of the following:

     

    (a) (i)
      Incur
      or permit to exist any Lien with respect to the Guaranty Collateral now owned
      or
      hereafter acquired by such Guarantor, except Liens in favor of the Collateral
      Agent for the benefit of Lender or (ii) enter into or become subject to any
      agreement (other than this Agreement or any Loan Document) that prohibits or
      otherwise restricts the right of such Guarantor to create, assume or suffer
      to
      exist any Lien in favor of the Collateral Agent for the benefit of Lender on
      such Person’s assets.

     

    (b) Delegate,
      transfer or assign any of its obligations or liabilities under this Agreement
      or
      any other Loan Document, or any part thereof, to any other Person.

     

    (c) Be
      a
      party to or participate in: (i) any merger or consolidation; (ii) any purchase
      or other acquisition of all or substantially all of the assets or properties
      or
      shares of any class of, or any partnership or joint venture interest in, any
      other Person; or (iii) any sale, transfer, conveyance or lease of all or
      substantially all of such Guarantor’s assets or properties. 

     

    (d) Incur,
      assume or suffer to exist any Liabilities (including any contingent liabilities)
      or otherwise become liable upon the obligations of any Person by assumption,
      endorsement or guaranty thereof or otherwise other than (i) Liabilities under
      the Loan Documents to which it is a party; (ii) accounts payable incurred in
      the
      ordinary course of business; or (iii) other Liabilities consented to in writing
      by Lender.

     

    (e) Directly
      or indirectly make loans to, invest in, extend credit to, or guaranty the debt
      of any Person, other than in the ordinary course of such Guarantor’s
      business.

     

    (f) Amend,
      modify, or otherwise change in any respect any material agreement, instrument,
      or arrangement (written or oral) by which such Guarantor, or any of its assets,
      are bound, including, without limitation, the Loan Documents.

    
      
        
        

      

      
        -12-

        
          

        

      

       

    

     

    (g) Change
      its name, convert from one type of entity to another type, change its principal
      place of business, change the state in which it is organized under, or make
      any
      material changes in the nature of its business as carried on as of the date
      hereof.

     

    (h) Make
      any
      expenditure or commitment or incur any obligation or enter into or engage in
      any
      transaction except as expressly authorized pursuant to the Loan Documents;
      (ii) engage directly or indirectly in any business or conduct any
      operations except as expressly authorized pursuant to the Loan Documents; or
      (iii) make any acquisitions of or capital contributions to or other investments
      in any Person, except pursuant to the Loan Documents.

     

    (i) Establish
      or deposit any monies, securities or any other assets in any Other Account
      without the prior written consent of the Lender.

     

    (j) Sell,
      assign (by operation of law or otherwise) or otherwise dispose of any of the
      Guaranty Collateral, or create or suffer to exist any Lien or other charge
      or
      encumbrance upon or with respect to any of the Guaranty Collateral to secure
      indebtedness of any Person, except for the security interest created by this
      Security Agreement.

     

    SECTION
      3.04 Covenants
      by Manchester.
      Manchester covenants with the Lender that it shall not at any time make any
      Distribution to its equity owners or any other Person if such Distribution
      would
      cause (i) a Guarantor Default or (ii) a Default or Event of Default (as those
      terms are defined in the Loan Agreement).

     

    SECTION
      3.05 Covenants
      by NCOC.
      NCOC
      represents and warrants to the Lender that, as of the date hereof, it does
      not
      own any interest in any retail installment sale contracts for any new or used
      automobiles, light trucks, vans or minivans and covenants with the Lender that
      it shall not on any date after the date of this Agreement own any such interest
      or originate any such sale contracts. 

     

    SECTION
      3.06 Financial
      Reports.
      Each
      Guarantor shall furnish to Lender and its duly authorized representatives such
      information respecting the business and financial condition such Guarantor
      may
      reasonably request, and without any request, the following financial statements
      and reports, in a form satisfactory to Lender:

     

    (a) As
      soon
      as available, and in any event within ten (10) calendar days after the close
      of
      each month, a copy of the consolidated and consolidating balance sheet of such
      Guarantor and the Borrower as of the close of the preceding month and the
      consolidated and consolidating statements of income, retained earnings and
      cash
      flows of such Guarantor and for the preceding month, each in reasonable detail
      showing in comparative form the figures for the corresponding date and period
      in
      the previous fiscal year (to the extent available to compare), prepared in
      accordance with GAAP, consistently applied;

     

    (b) As
      soon
      as available, and in any event within ninety (90) calendar days after the close
      of each fiscal year of such Guarantor, a copy of the consolidated and
      consolidating balance sheets of such Guarantor and the Borrower as of the close
      of such period and the consolidated and consolidating statements of income,
      retained earnings and cash flows of such Guarantor and the Borrower for such
      period, and all supporting schedules and footnotes thereto, all in detail
      reasonably satisfactory to Lender, prepared in accordance with GAAP,
      consistently applied. All such annual financial statements shall be audited
      by a
      firm of independent public accountants of recognized standing, selected by
      such
      Guarantor and satisfactory to Lender, in accordance with GAAP, and shall be
      accompanied by the written statement of the accountants who prepared the audited
      financial statements, certifying whether such accountants have obtained
      knowledge of any Event of Default under the Loan Documents;

     

    
      
        
        

      

      
        -13-

        
          

        

      

       

    

     

    (c) As
      soon
      as available, and in any event within forty-five (45) calendar days prior to
      the
      close of each annual accounting period of such Guarantor, pro forma balance
      sheets and statements of income, retained earnings and cash flows of the
      Borrower for the next annual accounting period;

     

    (d) Promptly
      after receipt thereof, any additional written reports, management letters or
      other detailed information contained in writing concerning significant aspects
      of such Guarantor’s or any of its subsidiary’s operations or concerning
      significant aspects of such Guarantor’s or any of its subsidiary’s financial
      affairs, given to it by its independent public accountants;

     

    (e) Promptly
      after receipt thereof and in no event more than five (5) Business Days
      thereafter, a copy of each audit or other report made by any state or federal
      agency of the books and records or assets of such Guarantor of its compliance
      or
      non-compliance with applicable laws relating to the underwriting, origination,
      servicing and/or collection of loans;

     

    (f) Promptly
      (but never more than five (5) Business Days) after knowledge thereof shall
      have
      come to the attention of such Guarantor, written notice of (i) any threatened
      or
      pending litigation or governmental proceeding or labor controversy against
      such
      Guarantor or (ii) the occurrence of any Guarantor Default;

     

    (g) As
      soon
      as available, a copy of all federal and state tax returns filed by such
      Guarantor during the current fiscal year and each fiscal year
      hereafter;

     

    (h) Within
      ten (10) calendar days of a request therefor from Lender, such other information
      (whether financial or otherwise) regarding such Guarantor as Lender shall
      reasonably require; and

     

    (i) As
      soon
      as available, and in any event within ten (10) calendar days prior to the
      beginning of each calendar month, monthly financial projections of such
      Guarantor for the next month.

     

    Each
      of
      the financial statements furnished to Lender pursuant to subsections (b) and
      (c)
      of this Section shall be accompanied by a written certificate signed by the
      chief financial officer or other authorized representative of Manchester, to
      the
      effect that to the best of the chief financial officer’s or applicable
      authorized representative’s knowledge and belief no Default or Event of Default
      has occurred during the period covered by such statements or, if any such
      Default or Event of Default has occurred during such period, setting forth
      a
      description of such Default or Event of Default and specifying the action,
      if
      any, taken to remedy the same. 

     

    
      
        
        

      

      
        -14-

        
          

        

      

       

    

     

    ARTICLE
      IV

     

    GUARANTOR
      ACCOUNTS

     

    SECTION
      4.01 Guarantor
      Accounts.
      Within
      15 calendar days after the date hereof, each Guarantor shall enter into account
      control agreements with the Lender, the Collateral Agent and the applicable
      banks with respect to all the Guarantor Account(s) held in the name of such
      Guarantor, each such account control agreements to be in form and substance
      satisfactory to the Lender in its sole discretion.

     

    ARTICLE
      V

     

    REMEDIES 

     

    SECTION
      5.01 Remedies.
      If any
      Guarantor Default shall occur and be continuing, the Lender or the Collateral
      Agent at the direction of the Lender may protect and enforce their rights under
      the Guaranty and this Agreement by any appropriate proceedings, including
      proceedings for specific performance of any covenant or agreement contained
      in
      the Guaranty and this Agreement and the following rights and
      remedies:

     

    (a) All
      of
      the rights and remedies of a secured party under the UCC, as amended, or other
      applicable law.

     

    (b) The
      right, to the fullest extent permissible by law, to: (i) enter upon the premises
      of any Guarantor, or any other place or places where the Guaranty Collateral
      is
      located and kept, without any obligation to pay rent to any Guarantor, through
      self-help and without judicial process, without first obtaining a final judgment
      or giving any Guarantor notice and opportunity for a hearing on the validity
      of
      such Secured Party’s claim, and remove the Guaranty Collateral therefrom to the
      premises of any Secured Party or any agent of Lender, for such time as Lender
      may desire, in order to effectively collect and liquidate the Collateral; and/or
      (ii) require any Guarantor to assemble the Guaranty Collateral and make it
      available to such Secured Party at a place to be designated by such Secured
      Party, in Lender’s reasonable discretion.

     

    (c) The
      right
      to sell or otherwise dispose of any or all Guaranty Collateral in its then
      condition at public or private sale or sales, in lots or in bulk, for cash
      or on
      credit, all as any Secured Party, in its discretion, may deem advisable;
      provided that such sales may be adjourned from time to time with or without
      notice. The requirement of reasonable notice to Guarantors of the time and
      place
      of any public sale of the Guaranty Collateral or of the time after which any
      private sale either by any Secured Party or at Lender’s option, a broker, or any
      other intended disposition thereof is to be made, shall be met if such notice
      is
      mailed, postage prepaid, to Guarantors at the address of Guarantors designated
      herein at least ten (10) Business Days before the date of any public sale or
      at
      least ten (10) Business Days before the time after which any private sale or
      other disposition is to be made unless applicable law requires
      otherwise.

    
      
        
        

      

      
        -15-

        
          

        

      

       

    

     

    (d) Each
      Secured Party shall have the right to conduct such sales on Guarantors’ premises
      or elsewhere and shall have the right to use the Guarantors’ premises without
      charge for such sales for such time or times as Lender may see fit. Each Secured
      Party is hereby granted a license or other right to use, without charge,
      Guarantors’ labels, copyrights, rights of use of any name, trade secrets, trade
      names, trademarks and advertising matter, or any property of a similar nature,
      as it pertains to the Guaranty Collateral, in advertising for sale and selling
      any Guaranty Collateral and Guarantors’ rights under all licenses and all
      franchise agreements shall inure to the benefit of the Collateral Agent for
      the
      benefit of the Lender.

     

    (e) Each
      Secured Party shall have the right to sell, lease or otherwise dispose of the
      Guaranty Collateral, or any part thereof, for cash, credit or any combination
      thereof, and such Secured Party may purchase all or part of the Guaranty
      Collateral at public or, if permitted by law, private sale and, in lieu of
      actual payment of such purchase price, may set off the amount of such price
      against the Secured Guaranty Obligations, all in the discretion of the Lender.
      The proceeds realized from the sale of any Guaranty Collateral shall be applied
      first to reasonable costs and expenses, attorney’s fees, expert witness fees
      incurred by any Secured Party for collection and for acquisition, completion,
      protection, removal, storage, sale and delivery of the Guaranty Collateral;
      second to all Secured Guaranty Obligations; and third the remainder, if any,
      to
      the Guarantors, their successors or assigns, or to whomsoever may be lawfully
      entitled to receive the same. If any deficiency shall arise, each Guarantor
      shall remain liable to the Secured Parties therefor.

     

    (f) The
      right
      to appoint or seek appointment of a receiver, custodian or trustee of any
      Guarantor or any of its properties or assets pursuant to court
      order.

     

    (g) All
      other
      rights and remedies that any Secured Party may have at law or in
      equity.

     

    Additionally,
      if any Guarantor Default shall occur and be continuing, each Secured Party
      may
      enforce the payment of any Secured Guaranty Obligations due it or enforce any
      other legal or equitable right which it may have. All rights, remedies and
      powers conferred upon the Secured Parties under the Guaranty and this Agreement
      shall be deemed cumulative and not exclusive of any other rights, remedies
      or
      powers available under the Guaranty and this Agreement or at law or in
      equity.

     

    SECTION
      5.02 No
      Waiver.
      No
      delay, failure or omission of any Secured Party to exercise any right upon
      the
      occurrence of any Guarantor Default shall impair any such right or shall be
      construed to be a waiver of any such Guarantor Default or an acquiescence
      therein. Any Secured Party may, from time to time, in a writing waive compliance
      by the other parties with any of the terms of the Guaranty and this Agreement
      and its rights and remedies upon any Guarantor Default, and, and each Guarantor
      agrees that no waiver by any Secured Party shall ever be legally effective
      unless such waiver shall be acknowledged and agreed to in writing by Lender.
      No
      waiver of any Guarantor Default by any Secured Party shall impair any right
      or
      remedy of such Secured Party not specifically waived. No single, partial or
      full
      exercise of any right of any Secured Party shall preclude any other or further
      exercise thereof. No modification or amendment of or supplement to this
      Agreement or any other written agreement between the parties hereto shall be
      valid or effective (or serve as a basis of reliance by way of estoppel) unless
      the same is in writing and signed by the Lender and the party against whom
      it is
      sought to be enforced. The acceptance by any Secured Party at any time and
      from
      time to time of a partial payment or partial performance of any of Secured
      Guaranty Obligations set forth herein shall not be deemed a waiver, reduction,
      modification or release from any Guarantor Default then existing. No waiver
      by
      any Secured Party of any Guarantor Default shall be deemed to be a waiver of
      any
      other existing or any subsequent Guarantor Default.

    
      
        
        

      

      
        -16-

        
          

        

      

       

    

     

    SECTION
      5.03 Appointment
      Of Lender As Attorney-In-Fact.
      Each
      Guarantor irrevocably designates, makes, constitutes and appoints each Secured
      Party (and all persons reasonably designated by any Secured Party), with full
      power of substitution, as such Guarantor’s true and lawful attorney-in-fact (and
      not agent-in-fact) and each Secured Party, or such Secured Party’s agent, may,
      without notice to any Guarantor, and at such time or times thereafter as such
      Secured Party or said agent, in its discretion, may determine, in any
      Guarantor’s or such Secured Party’s name, at no duty or obligation on such
      Secured Party, do the following:

     

    (a) Upon
      the
      occurrence of any Guarantor Default, all acts and things necessary to fulfill
      the Guarantor’s obligations under this Agreement and the other Loan Documents,
      except as otherwise set forth herein, at the cost and expense of the
      Guarantors.

     

    (b) In
      addition to, but not in limitation of the foregoing, at any time or times upon
      the occurrence of a Guarantor Default, each Secured Party shall have the right:
      (i) to enter upon Guarantors’ premises and to receive and open all mail directed
      to the Guarantors and remove all payments to the Guarantors on the Guaranty
      Collateral; (ii) in the name of the Guarantors, to notify the Post Office
      authorities to change the address for the delivery of mail addressed to the
      Guarantors to such address as such Secured Party may designate; (iii) demand,
      collect, receive for and give renewals, extensions, discharges and releases
      of
      any Guaranty Collateral; (iv) institute and prosecute legal and equitable
      proceedings to realize upon the Guaranty Collateral; (v) settle, compromise,
      compound or adjust claims in respect of any Guaranty Collateral or any legal
      proceedings brought in respect thereof; (vi) generally, sell in whole or in
      part
      for cash, credit or property to others or to itself at any public or private
      sale, assign, make any agreement with respect to or otherwise deal with any
      of
      the Guaranty Collateral as fully and completely as though such Secured Party
      were the absolute owner thereof for all purposes, except to the extent limited
      by any applicable laws and subject to any requirements of notice to the
      Guarantors or other persons under applicable laws; (vii) take possession and
      control in any manner and in any place of any cash or non-cash items of payment
      or proceeds of Guaranty Collateral; (viii) endorse the name of the Guarantors
      upon any notes, acceptances, checks, drafts, money orders, chattel paper or
      other evidences of payment of Guaranty Collateral that may come into the
      possession of such Secured Party; and (ix) sign the Guarantors’ name on any
      instruments or documents relating to any of the Guaranty Collateral. The
      appointment of each Secured Party as attorney-in-fact for the Guarantors is
      coupled with an interest and is irrevocable. 

    
      
        
        

      

      
        -17-

        
          

        

      

       

    

     

    ARTICLE
      VI

     

    EXPENSES
      AND INDEMNITIES

     

    SECTION
      6.01 Payment
      For Expenses.
      The
      Guarantors shall pay (within thirty (30) days after any invoice or other
      statement or notice) all costs and expenses incurred by any Secured Party or
      any
      of their affiliates, including, without limitation, (a) all documentation and
      diligence fees and expenses, (b) all search, appraisal, recording, professional
      and filing fees and expenses and all other out-of-pocket charges and expenses
      (including, without limitation, UCC and judgment and tax lien searches and
      UCC
      filings and fees for post-closing UCC, judgment and tax lien searches and wire
      transfer fees), (c) all audit fees and expenses, (d) all of the Secured Parties’
attorneys’ fees and expenses, but only to the extent incurred after a Guarantor
      Default or incurred in connection with (i) any effort to enforce, protect or
      collect payment of any Secured Guaranty Obligations or to enforce the Guaranty
      or this Agreement or any related agreement, document or instrument, or effect
      collection hereunder or thereunder, (ii) instituting, maintaining, preserving,
      enforcing and foreclosing on the Liens of the Collateral Agent for the benefit
      of the Secured Parties in any of the Guaranty Collateral, whether through
      judicial proceedings or otherwise, (v) defending or prosecuting any actions,
      claims or proceedings arising out of or relating to the Secured Parties’
transactions with the Guarantors unless there is a final, non-appealable
      judgment by a court which finds the applicable Secured Party to have acted
      in
      gross negligence or willful misconduct in connection therewith, or (vi) any
      modification, restatement, supplement, amendment, waiver or extension of this
      Agreement, the Guaranty or any related agreement, document or instrument, and
      all of the same may and shall be part of the Secured Guaranty Obligations.
      

     

    ARTICLE
      VII

     

    COLLATERAL
      AGENT

     

    SECTION
      7.01 Exculpation,
      Collateral Agent’s Reliance, Etc. 
      Neither
      Collateral Agent nor any of its directors, officers, agents, attorneys, or
      employees shall be liable to Lender, any Guarantor or any other Person for
      any
      action taken or omitted to be taken by any of them under or in connection with
      the this Agreement or the Guaranty, including their negligence of any kind,
      except that each shall be liable for its own gross negligence or willful
      misconduct, as determined by a non-appealable judgment of a court of competent
      jurisdiction. Without limiting the generality of the foregoing, Collateral
      Agent
      (a) may consult with legal counsel (including counsel for the Guarantors),
      independent public accountants and other experts selected by it and shall not
      be
      liable for any action taken or omitted to be taken in good faith by it in
      accordance with the advice of such counsel, accountants or experts; (b) makes
      no
      warranty or representation to Lender and shall not be responsible to Lender
      for
      any statements, warranties or representations made in or in connection with
      the
      Loan Documents; (c) shall not have any duty to ascertain or to inquire as to
      the
      performance or observance of any of the terms, covenants or conditions of the
      this Agreement or the Guaranty on the part of any Guarantor or to inspect the
      property (including the books and records) of any Guarantor; (d) shall not
      be
      responsible to Lender for the due execution, legality, validity, enforceability,
      genuineness, sufficiency or value of any this Agreement or the Guaranty or
      any
      instrument or document furnished in connection therewith; (e) may rely upon
      the
      representations and warranties of each Guarantor or Secured Party in exercising
      its powers hereunder; and (f) shall incur no liability to Lender under or in
      respect of the this Agreement or the Guaranty by acting upon any notice,
      consent, certificate or other instrument or writing (including any facsimile,
      telegram, cable or telex) believed by it to be genuine and signed or sent by
      the
      proper Person or Persons. Collateral Agent shall not be liable to Lender, any
      Guarantor or any other Person for special, exemplary, punitive or consequential
      damages. The Collateral Agent shall be fully justified in failing or refusing
      to
      take any action under this Agreement or any other Loan Document unless it shall
      first receive such advice or concurrence of the Lender as it deems appropriate
      or it shall first be indemnified to its satisfaction by the Lender against
      any
      and all liability and expense which may be incurred by it by reason of taking
      or
      continuing to take any such action.

    
      
        
        

      

      
        -18-

        
          

        

      

       

    

     

    SECTION
      7.02 Benefit
      of
      Article 7.
      The
      provisions of this Article are intended solely for the benefit of Lender, and
      no
      Guarantor shall be entitled to rely on any such provision or assert any such
      provision in a claim or defense against Lender. Lender and the Collateral Agent
      may waive or amend such provisions as they desire without any notice to or
      consent of any Guarantor.

     

    SECTION
      7.03 Resignation
      And
      Removal Of Collateral Agent.
      Collateral Agent may be removed and may resign in accordance with the provisions
      of Section 9.5 of the Loan Agreement.

     

    SECTION
      7.04 Notice
      of Guarantor Default.
      Collateral Agent shall not be deemed to have knowledge or notice of the
      occurrence of any Guarantor Default, unless Collateral Agent shall have received
      written notice from a Lender or a Guarantor referring to this Agreement,
      describing such Guarantor Default and stating that such notice is a “notice of
      default.” Collateral Agent will notify Lender of its receipt of any such notice.
      Collateral Agent shall take such action with respect to such Guarantor Default
      as may be directed by Lender; provided, however, that unless and until
      Collateral Agent has received any such direction, Collateral Agent may (but
      shall not be obligated to) take such action, or refrain from taking such action,
      with respect to such Guarantor Default as it shall deem advisable or in the
      best
      interest of Lender.

     

    ARTICLE
      VIII

     

    MISCELLANEOUS

     

    SECTION
      8.01 Notices.
      Except
      when telephonic notice is expressly authorized by this Agreement, any notice
      or
      other communication to any party in connection with this Agreement shall be
      in
      writing and shall be sent by manual delivery, telegram, facsimile transmission,
      overnight courier or United States mail (postage prepaid) addressed to such
      party at the address specified on Schedule A to the Loan Agreement, or at
      such other address as such party shall have specified to the other party hereto
      in writing. All periods of notice shall be measured from the date of delivery
      thereof if manually delivered, from the date of sending thereof if sent by
      telegram, or facsimile transmission, from the first Business Day after the
      date
      of sending if sent by overnight courier, or from four days after the date of
      mailing if mailed.

     

    SECTION
      8.02 Prior
      Agreements Superseded.
      This
      Agreement, together with the other Loan Documents, constitute the sole and
      only
      agreement of the parties hereto and supersede any prior understandings or
      written or oral agreements between the parties respecting the subject matter
      of
      this Agreement and the other Loan Documents. No provision of this Agreement
      or
      other Loan Document may be modified, waived or terminated except by instrument
      in writing executed by the Lender and the party against whom a modification,
      waiver or termination is sought to be enforced.

    
      
        
        

      

      
        -19-

        
          

        

      

       

    

     

    SECTION
      8.03 Parties
      Bound.
      This
      Agreement shall be binding upon the Guarantors, the Collateral Agent, Lender
      and
      their respective successors and assigns, and shall inure to the benefit of
      the
      Guarantors, the Collateral Agent, Lender and the successors and permitted
      assigned of each Guarantor, the Collateral Agent and Lender. No Guarantor shall
      assign its rights or duties hereunder without the consent of
      Lender..

     

    SECTION
      8.04 No
      Third Party Beneficiary.
      This
      Agreement is for the sole benefit of the Secured Parties and is not for the
      benefit of any third party.

     

    SECTION
      8.05 Execution
      In Counterparts.
      This
      Agreement may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed and delivered
      shall be deemed to be an original, and all of which taken together shall
      constitute but one and the same instrument.

     

    SECTION
      8.06 Severability
      Of Provisions.
      Any
      provision which is determined to be unconscionable, against public policy or
      any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions hereof or affecting the validity or enforceability of such provision
      in any other jurisdiction.

     

    SECTION
      8.07 Further
      Instruments.
      Each
      Guarantor shall from time to time execute and deliver, and shall cause each
      of
      its subsidiaries to execute and deliver, all such amendments, supplements and
      other modifications hereto and to the other Loan Documents to which they are
      party and all such financing statements or continuation statements, instruments
      of further assurance and any other instruments, and shall take such other
      actions, as any Secured Party reasonably requests and deems necessary or
      advisable in furtherance of the agreements contained herein.

     

    SECTION
      8.08 GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE DEEMED A CONTRACT AND INSTRUMENT MADE UNDER THE LAWS OF
      THE
      STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
      GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE LAWS OF THE UNITED STATES
      OF AMERICA. EACH PARTY HERETO HEREBY AGREES THAT ANY LEGAL ACTION OR PROCEEDING
      AGAINST IT WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE
      STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT
      OF NEW YORK AS LENDER MAY ELECT, AND, BY EXECUTION AND DELIVERY HEREOF, EACH
      PARTY HERETO ACCEPTS AND CONSENTS FOR ITSELF AND IN RESPECT TO ITS PROPERTY,
      GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID
      COURTS. EACH PARTY HERETO AGREES THAT SECTIONS 5-1401 AND 5.1402 OF THE GENERAL
      OBLIGATIONS LAW OF THE STATE OF NEW YORK SHALL APPLY TO THIS AGREEMENT AND
      WAIVES ANY RIGHT TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE
      SAID COURTS ON THE BASIS OF FORUM NON CONVENIENS. EACH PARTY HERETO HEREBY
      WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT, AND AGREES THAT ALL
      SUCH
      SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO IT AT THE ADDRESS
      SET FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED
      UPON ACTUAL RECEIPT THEREOF. 

     

    
      
        
        

      

      
        -20-

        
          

        

      

       

    

     

    SECTION
      8.09 CONSENT
      OF JURISDICTION.
      AT THE
      OPTION OF LENDER, THIS AGREEMENT MAY BE ENFORCED IN ANY FEDERAL COURT OR NEW
      YORK STATE COURT SITTING IN NEW YORK, NEW YORK; AND EACH PARTY HERETO CONSENTS
      TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT
      VENUE IN SUCH FORUMS IS NOT CONVENIENT. IN THE EVENT ANY RELATED PARTY COMMENCES
      ANY ACTION IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY
      ARISING DIRECTLY OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS AGREEMENT
      OR ANY OF THE OTHER LOAN DOCUMENTS, LENDER AT ITS OPTION SHALL BE ENTITLED
      TO
      HAVE THE CASE TRANSFERRED TO ONE OF THE JURISDICTIONS AND VENUES
      ABOVE-DESCRIBED, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE
      LAW, TO HAVE SUCH CASE DISMISSED WITHOUT PREJUDICE.

     

    SECTION
      8.10 WAIVER
      OF JURY
      TRIAL.
      EACH
      PARTY HERETO WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
      TO
      ENFORCE OR DEFEND ANY RIGHTS (a) UNDER THIS AGREEMENT OR UNDER ANY OF THE
      OTHER LOAN DOCUMENTS, OR (b) ARISING FROM ANY LENDING RELATIONSHIP EXISTING
      AMONG THE COLLATERAL AGENT AND LENDER, ON THE ONE HAND, AND THE RELATED PARTIES,
      ON THE OTHER HAND, IN CONNECTION WITH THIS AGREEMENT, AND AGREE THAT ANY SUCH
      ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A
      JURY.

     

    SECTION
      8.11 TIME
      OF ESSENCE.
      Time is
      of the essence for the performance of the obligations set forth in this
      Agreement and the Guaranty.

    

    signature
      pages follow

    
      
        
        

      

      
        -21-

        
          

        

      

       

    

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

     

    
      	 	 	 
	 	
              Manchester,
                Inc., a Nevada corporation

            
	 
 	 
 	 
 
	 	By:  	/s/
              Richard Gaines
	 	Name:	
              
 Richard
              Gaines
	 	Title: 	
              
 Secretary
	 	 	
              

            

    

    
      	 	 	 
	 	
              Nice
                Cars Acceptance AcquisitionCo., Inc.,

              
                a
                  Delaware corporation

              

            
	 
 	 
 	 
 
	
            	By:   	/s/ Richard Gaines
	 	Name: 	
              
 Richard
              Gaines
	 	Title: 	
              
 President
	 	 	
              
  

    

    
      	 	 	 
	 	
              Nice
                Cars Operations AcquisitionCo., Inc.,

              a
                Delaware corporation

            
	 
 	 
 	 
	 	By:  	/s/
              Richard Gaines
	 	Name:	
              
 Richard
              Gaines
	 	Title: 	
              
 President
	 	 	
              
 

    

    
      	 	 	 
	 	
              The
                Bank of New York,

              as
                Collateral Agent

            
	 
 	 
 	
               

            
	 	By:	/s/ Stephen C. Jerard 
	 	Name:	
              
 Stephen
              C. Jerard  
	 	Title:	
              
 Vice
              President
	 	 	
              
  
	 	 	 

    

    

      
        
          
          

        

        
          
          

          
            

          

        

         

      

    

    
      	 	 	 
	 	
              Palm
                Beach Multi-Strategy Fund, L.P.

            
	 
 	 
 	 
 
	
            	By:  	
              Palm
                Beach Links Capital, L.P.,

              its General
                Partner

            

    
      	 	 	 
	
            	       
              	
              
                By:  
                  PBL
                  Holdings, LLC,

                 its
                  General Partner

              

            

    

    

      	 	 	 
	
            	       
              	
              
                       
                  By:  B. Scott Olson

                
                  

                

              

              Managing
                Director

            

    

     

    
      	 	 	 
	
            	       
              	
              
                       
                  By:  Thomas L. Gervais

                
                  

                

              

              Managing
                DirectorFUNDING
      AGREEMENT

     

    Funding
      Agreement (the “Agreement”),
      dated
      as of September 29, 2006, among The Bank of New York, a New York banking
      corporation with its principal corporate trust office at 101 Barclay Street,
      8th
      Floor
      West, New York, New York 10286, as Collateral Agent under the Loan Agreement
      (defined below) (the “Collateral
      Agent”),
      Palm
      Beach Multi-Strategy Fund, L.P., a Delaware limited partnership, with its
      principal office at 3601 PGA Blvd., Suite 301, Palm Beach Gardens Florida 33410
      (the “Lender”);
      Nice
      Cars Funding LLC, Delaware limited liability company with its principal office
      at 100 Crescent Court, 7th
      Floor,
      Dallas, Texas 75201 (the “Borrower”)
      and
      Manchester, Inc., a Nevada corporation, with its principal office at 100
      Crescent Court, 7th
      Floor,
      Dallas, Texas 75201 (the “Guarantor”).

     

    WHEREAS,
      Lender, Collateral Agent and Borrower have entered into that certain Loan and
      Security Agreement (the “Loan
      Agreement”)
      dated
      September 28, 2006, between Borrower and Lender, and the Collection Account
      (as
      defined in the Loan Agreement) has been established in the name of Lender with
      Collateral Agent. 

     

    WHEREAS,
      pursuant to the Loan Agreement, certain conditions precedent are required to
      be
      satisfied prior to Borrower becoming entitled to request an advance thereunder
      from Lender. In this Agreement, the term “Conditions”
shall
      mean all of the conditions precedent to the obligations of Lender under the
      Loan
      Agreement and every other Loan Document (as defined in the Loan
      Agreement).

     

    WHEREAS,
      Guarantor has entered into that certain Guaranty dated September 28, 2006 (the
      “Guaranty”)
      made
      by the Guarantor and others in favor of Lender, whereby the Guarantor has
      guaranteed the obligations of Borrower to Lender under the Loan Agreement and
      the other Loan Documents.

     

    WHEREAS,
      as of the date hereof, not all of the Conditions have been satisfied, and
      Lender, at the request of Borrower and Guarantor, is willing to make an advance
      under the Loan Agreement into the Collection Account (as defined in the Loan
      Agreement) on the terms, and subject to the conditions, of this Agreement.
      

     

    NOW,
      THEREFORE, it is agreed as follows:

     

    Section
      1.1  Deposit
      into Collection Account.

     

    (a)  On
      the
      date hereof (the “Funding
      Date”),
      conditional upon Guarantor having wired an amount equal to $1,801,250 to the
      Collection Account, Lender shall wire an amount equal to $54,000,000 (such
      amount advanced by Lender, the “Advanced
      Funds”)
      to the
      Collection Account, to be held therein by Collateral Agent on the terms of
      this
      Agreement. Collateral Agent shall invest the funds in the Collection Account
      in
      Eligible Investments (as defined in the Loan Agreement) in accordance with
      Section 2.14 of the Loan Agreement, provided that any interest or other earnings
      on funds earned in the Collection Account shall be retained in the Collection
      Account until distributed in accordance with this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  Except
      as
      otherwise provided in this Agreement, and subject to Section 2, below, the
      Advanced Funds shall be treated as a Loan made by Lender to Borrower under
      the
      Loan Agreement on the Funding Date, and shall bear interest from the Funding
      Date at the rate specified in the Loan Agreement.

     

    Section
      2.1  Disbursements.

     

    (a)  Upon
      receipt of a written instruction executed by Lender (a “Disbursement
      Notice”),
      Collateral Agent shall disburse funds on deposit in the Collection Account
      to
      such person or persons, and in such amounts, as may be specified in the
      Disbursement Notice. Collateral Agent shall not accept instructions from
      Borrower, Manchester, or any other person with respect to disbursement of funds
      from, or any other matter regarding, the Collection Account. 

     

    (b)  Lender
      agrees with Borrower that, if all of the Conditions are satisfied to the
      satisfaction of Lender in its sole discretion by noon, Dallas, Texas time on
      October 6, 2006, Lender will deliver a Disbursement Notice to Collateral Agent
      instructing Collateral Agent to disburse all funds on deposit in the Collection
      Account in the following order of priority: first,
      to
      Lender, an amount equal to (i) all interest due on the Loan pursuant to the
      Loan
      Agreement for the period from the Funding Date until the date of such
      disbursement and (ii) an amount equal to all fees, expenses and any other
      amounts payable to Lender or Collateral Agent under the Loan Agreement and
      any
      other Loan Documents (the “Borrower
      Expenses”)
      as of
      such date; and second,
      to
      Borrower (or to such other person specified in the Disbursement Notice), the
      balance of funds on deposit in the Collection Account.

     

    (c)  If
      all of
      the Conditions are not satisfied to the satisfaction of Lender in its sole
      discretion by noon, Dallas, Texas time on October 6, 2006, Lender and Borrower
      agree that, notwithstanding any other provision of the Loan Agreement, Lender
      may declare an Event of Default (as defined in the Loan Agreement) to have
      occurred and the Loan, all interest accrued thereon and all Borrower Expenses
      to
      be immediately repayable, and in such circumstances Lender may deliver a
      Disbursement Notice to Collateral Agent instructing Collateral Agent to disburse
      all funds on deposit in the Collection Account to Lender, which Lender will
      apply in accordance with Section 2.9 of the Loan Agreement, except that the
      Borrower Expenses shall first be paid. In the event that such funds are
      insufficient to pay or repay (as the case may be) the Loan, all interest accrued
      thereon and all Borrower Expenses (the amount of such insufficiency, a
“Shortfall”),
      Borrower shall be liable to pay the amount of such Shortfall to Lender, which
      shall be due and payable immediately.

     

    (d)  The
      parties hereto agree that, until all funds have been disbursed from the
      Collection Account pursuant to a Disbursement Notice, no payments shall be
      made
      from the Collection Account pursuant to Section 2.11 of the Loan Agreement,
      or
      otherwise.

     

    (e)  The
      Guarantor hereby irrevocably, absolutely and unconditionally guarantees the
      payment by Borrower of any Shortfall on the terms of the Guaranty (and, for
      the
      avoidance of doubt, such Shortfall shall be a “Guaranteed Obligation” for the
      purposes of the Guaranty), provided that the limitation on the Guarantor’s
      liability in Section 2(f) of the Guaranty shall not apply to the Guarantor’s
      obligations with respect to the Shortfall.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      3.1  Notices.
      Any
      notice or other communication to any party in connection with this Agreement
      shall be in writing and shall be sent by manual delivery, telegram, facsimile
      transmission, overnight courier or United States mail (postage prepaid)
      addressed to such party at the address specified on Schedule A to the Loan
      Agreement, or at such other address as such party shall have specified to the
      other party hereto in writing. 

     

    Section
      3.2  Assignment.
      No
      Related Party shall assign its rights or duties hereunder without the consent
      of
      Lender.

     

    Section
      3.3  Execution
      in Counterparts.
      This
      Agreement may be executed in any number of counterparts and by the parties
      hereto in separate counterparts, each of which when so executed and delivered
      shall be deemed to be an original, and all of which taken together shall
      constitute but one and the same instrument.

     

    Section
      3.4  GOVERNING
      LAW.
      THIS
      AGREEMENT SHALL BE DEEMED A CONTRACT AND INSTRUMENT MADE UNDER THE LAWS OF
      THE
      STATE OF NEW YORK AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND
      GOVERNED BY THE LAWS OF THE STATE OF NEW YORK AND THE LAWS OF THE UNITED STATES
      OF AMERICA. EACH PARTY HERETO HEREBY AGREES THAT ANY LEGAL ACTION OR PROCEEDING
      AGAINST IT WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE
      STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT
      OF NEW YORK AS LENDER MAY ELECT, AND, BY EXECUTION AND DELIVERY HEREOF, EACH
      PARTY HERETO ACCEPTS AND CONSENTS FOR ITSELF AND IN RESPECT TO ITS PROPERTY,
      GENERALLY AND UNCONDITIONALLY, THE NONEXCLUSIVE JURISDICTION OF THE AFORESAID
      COURTS. EACH PARTY HERETO AGREES THAT SECTIONS 5-1401 AND 5.1402 OF THE GENERAL
      OBLIGATIONS LAW OF THE STATE OF NEW YORK SHALL APPLY TO THIS AGREEMENT AND
      WAIVES ANY RIGHT TO STAY OR TO DISMISS ANY ACTION OR PROCEEDING BROUGHT BEFORE
      SAID COURTS ON THE BASIS OF FORUM NON CONVENIENS. 

     

    Section
      3.5  Waiver
      of Jury Trial.
      EACH
      PARTY HERETO WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING
      TO
      ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT AND AGREE THAT ANY SUCH ACTION
      OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement on the day and year
      first set forth above.

     

    
      	 	 	 
	 	
              PALM
                BEACH MULTI-STRATEGY FUND, LP

            
	 	 
	 	
              BY:  
                PALM
                BEACH LINKS CAPITAL, LP,
                
          its
                general partner 

            
	 	 
	 	
                BY:  
PBL
                HOLDINGS, LLC,

                          
                its general partner

            

    

     

    
      	
            	By:  	B.
              Scott Olson
	 	
              
                
Managing
                Director

            

    

    
       

      
        	
              	By:  	Thomas
                L. Gervais
	 	
                
                  

                  Managing
                    Director

                

              

      

       

      
        	 	 	 
	 	
                NICE
                  CARS FUNDING LLC

              
	 	 
	 	By:	
                Nice
                  Cars Acceptance AcquisitionCo., Inc., 

                its
                  Member

              
	 
 	 
 	 
 
	
              	By:  	/s/
                Richard Gaines
	 	
                

              
	 	
                Name:
                  Richard Gaines

              
	 	Title:  
                President

      

       

    

    
      	 	 	 
	 	
              MANCHESTER
                INC. :

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Richard Gaines
	 	
              

            
	 	
              Name:
                Richard Gaines

            
	 	
              Title:  
                Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]