Document:

<PAGE>   1
                                                                 EXHIBIT 4(B)(5)

                   FOURTH AMENDMENT TO NOTE PURCHASE AGREEMENT
                                       RE:
                          CREDIT ACCEPTANCE CORPORATION
         FIRST AMENDED AND RESTATED 8.24% SENIOR NOTES DUE JULY 1, 2001

                                                    Dated as of December 1, 1999

To the Noteholders listed on Annex I hereto

Ladies and Gentlemen:

         Credit Acceptance Corporation, a Michigan corporation (together with
its successors and assigns, the "Company"), hereby agrees with you as follows:

SECTION 1. INTRODUCTORY MATTERS.

         1.1 DESCRIPTION OF OUTSTANDING NOTES. The Company currently has
outstanding $27,235,714.01 in aggregate unpaid principal amount of its First
Amended and Restated 8.24% Senior Notes due July 1, 2001 (collectively, the
"Notes") which it issued pursuant to the separate Note Purchase Agreements, each
dated as of August 1, 1996 (collectively, as amended by the First Amendment to
Note Purchase Agreement, dated as of December 12, 1997, the Second Amendment to
Note Purchase Agreement, dated as of July 1, 1998, and the Third Amendment to
Note Purchase Agreement, dated as of April 13, 1999, the "Agreement"), entered
into by the Company with each of the original holders of the Notes listed on
Annex 1 thereto, respectively. Terms used herein but not otherwise defined
herein shall have the meanings assigned thereto in the Agreement, as amended
hereby.

         1.2 PURPOSE OF AMENDMENT. The Company and you desire to amend the
Agreement as set forth in Section 2 hereof.

SECTION 2. AMENDMENT TO THE AGREEMENT.

         Pursuant to Section 10.5 of the Agreement, the Company hereby agrees
with you that the Agreement shall be amended by this Fourth Amendment to Note
Purchase Agreement (this "Fourth Amendment") in the following respects:

         2.1 SECTION 1.1. Section 1.1 is hereby amended and restated in its
entirety as set forth below.

<PAGE>   2
                  "1.1 Authorization of Notes.

                           (a) On August 29, 1996, the Company issued Seventy
                  Million Dollars ($70,000,000) in aggregate principal amount of
                  its 7.99% Senior Notes due August 1, 2001 (the "Original
                  Notes," such term to include each Original Note delivered from
                  time to time prior to the effectiveness of the Second
                  Amendment in accordance with any of the Note Purchase
                  Agreements), each:

                                    (i) bearing interest (computed on the basis
                           of a 360-day year of twelve 30-day months) on the
                           unpaid principal balance thereof from the date of
                           such Original Note at the rate of seven and
                           ninety-nine one-hundredths percent (7.99%) per annum,
                           payable semi-annually on the first (1st) day of
                           January and the first (1st) day of July in each year
                           commencing on the later of January 1, 1997 or the
                           payment date next succeeding the date of such
                           Original Note;

                                    (ii) bearing interest, payable on demand, on
                           any overdue principal (including any overdue
                           prepayment of principal) and Make-Whole Amount, if
                           any, and (to the extent permitted by applicable law)
                           on any overdue installment of interest, at a rate
                           equal to the lesser of

                                            (A) the highest rate allowed by
                                    applicable law, or

                                            (B) nine and ninety-nine
                                    one-hundredths percent (9.99%) per annum;

                                    (iii) maturing on July 1, 2001; and

                                    (iv) in the form of the Original Note set
                           out in Exhibit A, as in effect on the Closing Date.

                           (b) Pursuant to the Second Amendment, the Company and
                  the holders of the Original Notes have agreed to amend and
                  restate in full the Original Notes substantially in the form
                  attached to the Second Amendment as Attachment 1 thereto (the
                  "First Amended and Restated Notes," such term to include each
                  Original Note, as amended and restated pursuant to the Second
                  Amendment, and each First Amended and Restated Note delivered
                  from time to time on or after the effectiveness of the Second
                  Amendment in accordance with any of the Note Purchase
                  Agreements). Each First Amended and Restated Note will:

                                    (i) be designated a "First Amended and
                           Restated 8.24% Senior Note Due July 1, 2001";

                                    (ii) bear interest (computed on the basis of
                           a 360-day year of twelve 30-day months) on the unpaid
                           principal balance thereof from the date

                                       2
<PAGE>   3

                           of such Note at the rate of seven and ninety-nine
                           one-hundredths percent (7.99%) per annum through (but
                           not including) July 1, 1998, and at the rate of eight
                           and twenty-four one-hundredths percent (8.24%) per
                           annum from and after July 1, 1998 through, but not
                           including, December 1, 1999, payable semi-annually on
                           the first (1st) day of January and the first (1st)
                           day of July in each year commencing on the payment
                           date next succeeding the date of such First Amended
                           and Restated Note;

                                    (iii) bear interest, payable on demand, on
                           any overdue principal (including any overdue
                           prepayment of principal) and Make-Whole Amount, if
                           any, and (to the extent permitted by applicable law)
                           on any overdue installment of interest, at a rate
                           equal to the lesser of

                                            (A) the highest rate allowed by
                                    applicable law, or

                                            (B) (I) nine and ninety-nine
                                    one-hundredths percent (9.99%) per annum if
                                    such time is prior to July 1, 1998, or (II)
                                    ten and twenty-four one-hundredths percent
                                    (10.24%) per annum if such time is on or
                                    after July 1, 1998 and prior to December 1,
                                    1999;

                                    (iv) mature on July 1, 2001; and

                                    (v) be in the form of the First Amended and
                           Restated Note set out in Exhibit A (as in effect upon
                           the effectiveness of the Second Amendment).

                           (c) Pursuant to the Fourth Amendment, the Company and
                  the holders of the Notes have agreed to amend and restate in
                  full the First Amended and Restated Notes which remain
                  outstanding at and after December 1, 1999 substantially in the
                  form attached to the Fourth Amendment as Attachment 4 thereto
                  (the "Second Amended and Restated Notes," such term to include
                  each Original Note, as amended and restated pursuant to the
                  Second Amendment, each First Amended and Restated Note
                  delivered from time to time on or after the effectiveness of
                  the Second Amendment in accordance with any of the Note
                  Purchase Agreements, and each Second Amended and Restated Note
                  delivered from time to time on or after December 1, 1999 in
                  accordance with any of the Note Purchase Agreements). Each
                  Second Amended and Restated Note will:

                                    (i) (A) from and including December 1, 1999
                           through, but not including, January 15, 2000 be
                           designated a "Second Amended and Restated 8.99%
                           Senior Note Due July 1, 2001" and (B) from and after
                           January 15, 2000 be designated a "Second Amended and
                           Restated 9.49% Senior Note Due July 1, 2001";

                                       3
<PAGE>   4

                                    (ii) bear interest (computed on the basis of
                           a 360-day year of twelve 30-day months) on the unpaid
                           principal balance thereof from the date of such Note
                           at the rate of eight and ninety-nine one-hundredths
                           percent (8.99%) per annum from and including December
                           1, 1999 through, but not including, January 15, 2000,
                           and at the rate of nine and forty-nine one-hundredths
                           percent (9.49%) per annum from and after January 15,
                           2000 to and including the date of maturity thereof,
                           payable semi-annually on the first (1st) day of
                           January and the first (1st) day of July in each year
                           commencing on the payment date next succeeding the
                           date of such Second Amended and Restated Note;

                                    (iii) bear interest, payable on demand, on
                           any overdue principal (including any overdue
                           prepayment of principal) and Make-Whole Amount, if
                           any, and (to the extent permitted by applicable law)
                           on any overdue installment of interest, at a rate
                           equal to the lesser of

                                            (A) the highest rate allowed by
                                    applicable law, or

                                            (B) (I) ten and ninety-nine
                                    one-hundredths percent (10.99%) per annum if
                                    such time is from and including December 1,
                                    1999 through, but not including, January 15,
                                    2000, or (II) eleven and forty-nine
                                    one-hundredths percent (11.49%) per annum if
                                    such time is on or after January 15, 2000;

                                    (iv) mature on July 1, 2001; and

                                    (v) be in the form of the Second Amended and
                           Restated Note set out in Exhibit A (as in effect upon
                           the effectiveness of the Fourth Amendment).

                           (d) The Original Notes, the First Amended and
                  Restated Notes and the Second Amended and Restated Notes are
                  referred to herein, collectively, as the "Notes". The term
                  "Notes" as used herein shall include each Note delivered
                  pursuant to the Note Purchase Agreements and each Note
                  delivered in substitution or exchange for any such Note
                  pursuant to Section 5.2 or Section 5.3, and shall be deemed
                  (i) when reference is made to a date prior to the effective
                  date of the Second Amendment, to be a reference to the
                  Original Notes, (ii) when reference is made to a date on or
                  after the effective date of the Second Amendment, to be a
                  reference to the First Amended and Restated Notes, and (iii)
                  when reference is made to a date on or after December 1, 1999,
                  to be a reference to the Second Amended and Restated Notes."

         2.2 ARTICLE 6. Article 6 is hereby amended and restated in its entirety
as set forth below.

                                       4
<PAGE>   5

"6. COVENANTS

         The Company covenants that on and after the Closing Date and so long as
any of the Notes shall be outstanding:

         6.1 DEBT AND ADVANCES.

                  (A) TOTAL DEBT. The Company will not at any time permit
         Consolidated Total Debt to exceed any of the following:

                           (i)(A) two hundred seventy-five percent (275%) of
                  Consolidated Tangible Net Worth prior to the effective date of
                  the Second Amendment, and (B) two hundred percent (200%) of
                  Consolidated Tangible Net Worth from the effective date of the
                  Second Amendment until such time (but in no event prior to
                  December 31, 1998) as the Company has maintained a ratio of
                  (A) Consolidated Income Available for Fixed Charges for the
                  four consecutive fiscal quarters of the Company most recently
                  ended at such time to (B) Consolidated Fixed Charges for such
                  period of not less than 2.25 to 1.0 for two consecutive fiscal
                  quarters, then two hundred seventy-five percent (275%) of
                  Consolidated Tangible Net Worth, provided however, that for
                  the purposes of this test, Consolidated Total Debt shall be
                  calculated by including all Debt incurred by a Special Purpose
                  Subsidiary, whether or not included therein under GAAP;

                           (ii) Seventy-Five Percent (75%) of the sum of (A)
                  Advances and (B) Leased Vehicles; and

                           (iii) Sixty Percent (60%) of the sum of (A) Gross
                  Current Installment Contract Receivables and (B) Gross Current
                  Leased Vehicles.

                  (B) SENIOR FUNDED DEBT. The Company will not at any time
         permit Consolidated Senior Funded Debt to exceed either

                           (i) two hundred percent (200%) of Consolidated
                  Tangible Net Worth at such time, or

                           (ii) (A) the sum of (I) Net Installment Contract
                  Receivables less Net Dealer Holdbacks and (II) Leased Vehicles
                  less Net Leased Vehicle Dealer Holdbacks, in each case at such
                  time, divided by

                                (B) 1.10.

                                       5
<PAGE>   6

                  (C) SUBORDINATED FUNDED DEBT. The Company will not at any time
         permit Consolidated Subordinated Funded Debt to exceed one hundred
         fifty percent (150%) of Consolidated Tangible Net Worth at such time.

                  (D) RESTRICTED SUBSIDIARY DEBT. The Company will not at any
         time permit the sum of (i) Total Restricted Subsidiary Debt at such
         time plus, without duplication, (ii) the aggregate amount of all Debt
         and other obligations outstanding at such time secured by Liens
         permitted by clause (v), clause (vi) and clause (vii) of Section 6.6(a)
         to exceed (A) on or before July 31, 1997, fifteen percent (15%) of
         Consolidated Tangible Net Worth or (B) on or after August 1, 1997,
         twenty percent (20%) of Consolidated Tangible Net Worth.

                  (E) COMMERCIAL PAPER. The Company will not, and will not
         permit any Restricted Subsidiary to, issue commercial paper unless the
         obligations of the Company or such Restricted Subsidiary with respect
         to such commercial paper are backed by a Letter of Credit Facility.

                  (F) GROSS ADVANCES. The Company will not at any time permit
         Gross Advances to exceed seventy percent (70%) of Net Installment
         Contract Receivables; provided, however, that at any time at which the
         Credit Agreement (as from time to time amended, restated, refinanced,
         replaced or supplemented) does not permit the amount of Gross Advances
         to exceed 65% of Net Installment Contract Receivables, the Company
         shall not permit Gross Advances to exceed sixty-five percent (65%) of
         Net Installment Contract Receivables.

         6.2 FIXED CHARGE COVERAGE.

         The Company will not at any time permit the ratio of

                           (a) Consolidated Income Available for Fixed Charges
                  for the period of four (4) consecutive fiscal quarters of the
                  Company most recently ended at such time to

                           (b) Consolidated Fixed Charges for such period

                  to be less than (i) 2.5 to 1.0 for any period of four fiscal
                  quarters ended on or prior to September 30, 1997, (ii) 1.9 to
                  1.0 for the four fiscal quarters ended December 31, 1997,
                  (iii) 1.7 to 1.0 for the four fiscal quarters ended March 31,
                  1998, (iv) 1.6 to 1.0 for the four fiscal quarters ended June
                  30, 1998, (v) 2.0 to 1.0 for the four fiscal quarters ended
                  September 30, 1998 and (vi) 2.25 to 1.0 for any four fiscal
                  quarters ended on or after December 31, 1998.

                                       6
<PAGE>   7
         6.3 CONSOLIDATED TANGIBLE NET WORTH.

         The Company will not at any time permit Consolidated Tangible Net
Worth, determined at such time, to be less than the result of

                  (a) Two Hundred Eighteen Million Seven Hundred Twenty Five
         Thousand Dollars ($218,725,000), plus

                  (b) the sum of (i) seventy-five percent (75%) of Consolidated
         Net Income for each fiscal year ended during the period beginning on
         January 1, 1999 and ending on such date (unless Consolidated Net Income
         shall be a loss in any such fiscal year, in which event the amount
         determined pursuant to this clause (b)(i) for such fiscal year shall be
         zero) and (ii) 100% of the proceeds of each Equity Offering conducted
         on and after July 1, 1998 by the Company or any of its Restricted
         Subsidiaries, net of related costs of issuance payable to third
         parties, on a cumulative basis.

         6.4 SALE AND LEASEBACK TRANSACTIONS.

         The Company will not, and will not permit any Restricted Subsidiary to,
enter into, at any time, any Sale and Leaseback Transaction unless,

                  (a) after giving effect thereto,

                           (i) the sale of Property in connection with such Sale
                  and Leaseback Transaction is permitted pursuant to Section 6.8
                  and

                           (ii) the Debt to be secured by a Lien on the Property
                  to be leased in connection with such Sale and Leaseback
                  Transaction is permitted pursuant to the provisions of Section
                  6.1 and Section 6.6, and

                  (b) the lease of such Property constitutes a Capital Lease.

         6.5 RESTRICTED INVESTMENTS.

         The Company will not, and will not permit any Restricted Subsidiary to,
make any Restricted Investment.

         6.6 LIENS.

                  (A) NEGATIVE PLEDGE. The Company will not, and will not permit
         any Restricted Subsidiary to, cause or permit to exist, or agree or
         consent to cause or permit to exist in the future (upon the happening
         of a contingency or otherwise), any of their Property, whether now
         owned or hereafter acquired, to be subject to any Lien except:

                                       7
<PAGE>   8

                           (i) (A) Liens securing Property taxes, assessments or
                  governmental charges or levies or the claims or demands of
                  materialmen, mechanics, carriers, warehousemen, vendors,
                  landlords and other like Persons, provided that the payment
                  thereof is not at the time required by Section 6.12, (B) any
                  Lien encumbering Securitization Property which is the subject
                  of a Transfer pursuant to a Permitted Securitization, and (C)
                  any Lien granted in favor of the "Collateral Agent" (as
                  defined in the Intercreditor Agreement) for the benefit of the
                  Banks, the holders of Notes and "Future Debt Holders" (as
                  defined in the Intercreditor Agreement) and subject to the
                  Intercreditor Agreement;

                           (ii) Liens

                                    (A) arising from judicial attachments and
                           judgments,

                                    (B) securing appeal bonds or supersedeas
                           bonds, and

                                    (C) arising in connection with court
                           proceedings (including, without limitation, surety
                           bonds and letters of credit or any other instrument
                           serving a similar purpose),

                  provided that (1) the execution or other enforcement of such
                  Liens is effectively stayed, (2) the claims secured thereby
                  are being contested in good faith and by appropriate
                  proceedings, (3) adequate book reserves in accordance with
                  GAAP shall have been established and maintained and shall
                  exist with respect thereto, (4) such Liens do not in the
                  aggregate detract from the value of such Property and (5) the
                  title of the Company or the Restricted Subsidiary, as the case
                  may be, to, and its right to use, such Property, is not
                  materially adversely affected thereby;

                           (iii) Liens incurred or deposits made in the ordinary
                  course of business

                                    (A) in connection with workers'
                           compensation, unemployment insurance, social security
                           and other like laws, and

                                    (B) to secure the performance of letters of
                           credit, bids, tenders, sales contracts, leases,
                           statutory obligations, surety and performance bonds
                           (of a type other than set forth in Section
                           6.6(a)(ii)) and other similar obligations not
                           incurred in connection with the borrowing of money,
                           the obtaining of advances or the payment of the
                           deferred purchase price of Property;

                           (iv) Liens in the nature of reservations, exceptions,
                  encroachments, easements, rights-of-way, covenants,
                  conditions, restrictions, leases and other similar title
                  exceptions or encumbrances affecting real Property, provided
                  that (1) such

                                       8
<PAGE>   9

                  exceptions and encumbrances do not in the aggregate materially
                  detract from the value of such Property and (2) title of the
                  Company or the Restricted Subsidiary, as the case may be, to,
                  and the right to use, such Property, is not materially
                  adversely affected thereby;

                           (v) Liens in existence on the Closing Date securing
                  Debt, provided that such Liens are described in Part 6.6(a)(v)
                  of Annex 3;

                           (vi) Purchase Money Liens, if, after giving effect
                  thereto and to any concurrent transactions:

                                    (A) each such Purchase Money Lien secures
                           Debt in an amount not exceeding the cost of
                           acquisition or construction of the particular
                           Property to which such Debt relates; and

                                    (B) immediately after giving effect thereto,
                           no Default or Event of Default would exist; and

                           (vii) Liens on Property not otherwise permitted under
                  clause (i) through clause (vi) of this Section 6.6(a) if the
                  obligations secured by such Liens, when added to (A) the
                  obligations secured by Liens pursuant to clause (v) and clause
                  (vi) of this Section 6.6(a) plus, without duplication, (B)
                  Total Restricted Subsidiary Debt at such time, do not exceed
                  (1) on or before July 31, 1997, fifteen percent (15%) of
                  Consolidated Tangible Net Worth or (2) on or after August 1,
                  1997, twenty percent (20%) of Consolidated Tangible Net Worth.

                  (B) EQUAL AND RATABLE LIEN; EQUITABLE LIEN. In case any
         Property shall be subjected to a Lien in violation of this Section 6.6,
         the Company will immediately make or cause to be made, to the fullest
         extent permitted by applicable law, provision whereby the Notes will be
         secured equally and ratably with all other obligations secured thereby
         pursuant to such agreements and instruments as shall be approved by the
         Required Holders, and the Company will cause to be delivered to each
         holder of a Note an opinion, satisfactory in form and substance to the
         Required Holders, of independent counsel to the effect that such
         agreements and instruments are enforceable in accordance with their
         terms, and in any such case the Notes shall have the benefit, to the
         fullest extent that, and with such priority as, the holders of Notes
         may be entitled thereto under applicable law, of an equitable Lien on
         such Property securing the Notes (provided that, notwithstanding the
         foregoing, each holder of Notes shall have the right to elect at any
         time, by delivery of written notice of such election to the Company, to
         cause the Notes held by such holder not to be secured by such Lien or
         such equitable Lien). A violation of this Section 6.6 will constitute
         an Event of Default, whether or not any such provision is made pursuant
         to this Section 6.6(b).

                                       9
<PAGE>   10

                  (C) FINANCING STATEMENTS. The Company will not, and will not
         permit any Restricted Subsidiary to, sign or file a financing statement
         under the Uniform Commercial Code of any jurisdiction that names the
         Company or such Restricted Subsidiary as debtor, or sign any security
         agreement authorizing any secured party thereunder to file any such
         financing statement, except, in any such case, a financing statement
         filed or to be filed to perfect or protect a security interest that the
         Company or such Restricted Subsidiary is permitted to create, assume or
         incur, or permit to exist, under the foregoing provisions of this
         Section 6.6 or to evidence for informational purposes a lessor's
         interest in Property leased to the Company or any such Restricted
         Subsidiary.

         6.7 MERGER AND CONSOLIDATION; COVENANT TO MERGE CAC INTERNATIONAL.

                  (A) MERGER AND CONSOLIDATION. The Company will not, and will
         not permit any Restricted Subsidiary to, merge or consolidate with or
         into, or sell, lease, transfer or otherwise dispose of all or
         substantially all of its Property to, any other Person or permit any
         other Person to merge or consolidate with or into it (the Company, the
         Restricted Subsidiary or such other Person that is the surviving
         corporation or transferee being herein referred to as the "Surviving
         Corporation"), provided that the foregoing restrictions shall not apply
         to:

                           (i) the merger or consolidation of the Company with
                  or into, or the sale of all or substantially all of the
                  Property of the Company to, another corporation, if:

                                    (A) the Surviving Corporation is solvent and
                           is organized under the laws of the United States of
                           America or any state thereof;

                                    (B) the due and punctual payment of the
                           principal of and Make-Whole Amount, if any, and
                           interest on all of the Notes, according to their
                           tenor, and the due and punctual performance and
                           observance of all the covenants in the Notes and this
                           Agreement to be performed or observed by the Company,
                           are expressly assumed or acknowledged by the
                           Surviving Corporation in a manner satisfactory to the
                           Required Holders, and the Company causes to be
                           delivered to each holder of Notes an opinion of
                           independent counsel, in form, scope and substance
                           satisfactory to the Required Holders, to the effect
                           that such assumption or acknowledgment is enforceable
                           in accordance with its terms; and

                                    (C) immediately prior to, and immediately
                           after the consummation of the transaction, and after
                           giving effect thereto, no Default or Event of Default
                           exists or would exist;

                           (ii) the merger or consolidation of a Restricted
                  Subsidiary with or into, or the sale of all or substantially
                  all of the Property of such Restricted Subsidiary to, the

                                       10
<PAGE>   11

                  Company, another Restricted Subsidiary or any other Person
                  that concurrently with such merger, consolidation or sale
                  becomes a Restricted Subsidiary, if:

                                    (A) the Surviving Corporation is organized
                           under the laws of the United States of America or any
                           state thereof; and

                                    (B) immediately prior to, and immediately
                           after the consummation of the transaction, and after
                           giving effect thereto, no Default or Event of Default
                           exists or would exist;

                           (iii) the Transfer of Securitization Property to any
                  Special Purpose Subsidiary in connection with a Permitted
                  Securitization; and

                           (iv) a merger, consolidation or Transfer of a
                  Restricted Subsidiary or Restricted Subsidiaries pursuant to
                  the Montana Disposition or the Arlington Disposition.

                  (B) COVENANT TO MERGE CAC INTERNATIONAL. The Company covenants
         and agrees that it shall merge CAC International with and into the
         Company (with the Company being the survivor) on or before May 15,
         1997, in accordance with Section 6.7(a).

         6.8 TRANSFERS OF PROPERTY; SUBSIDIARY STOCK.

                  (A) TRANSFERS OF PROPERTY. Except as permitted under Section
         6.7(a), the Company will not, and will not permit any Restricted
         Subsidiary to, sell, lease as lessor, transfer or otherwise dispose of
         any Property (including, without limitation, Restricted Subsidiary
         Stock) (collectively, "Transfers"), except:

                           (i) Transfers from a Restricted Subsidiary to the
                  Company or to a Wholly-Owned Restricted Subsidiary;

                           (ii) any other Transfer at any time of any Property
                  to a Person, other than an Affiliate, for an Acceptable
                  Consideration, if each of the following conditions would be
                  satisfied with respect to such Transfer:

                                    (A) the result of

                                            (1) the sum of

                                                     (aa) the current book value
                                            of such Property, plus

                                                     (bb) the aggregate book
                                            value of all other Property of the
                                            Company and the Restricted
                                            Subsidiaries, determined

                                       11
<PAGE>   12

                                            on a consolidated basis, Transferred
                                            (other than in Transfers referred to
                                            in clauses (i), (iii), (iv), (v) and
                                            (vi) of this Section 6.8(a) (the
                                            "Excluded Transfers"), but including
                                            Transfers pursuant to Section 6.8(b)
                                            other than in connection with the
                                            Montana Disposition or the Arlington
                                            Disposition) during the twelve (12)
                                            month period ended immediately prior
                                            to the date of such Transfer, minus

                                            (2) the aggregate cost of all
                                    Capital Assets acquired by the Company and
                                    the Restricted Subsidiaries, determined on a
                                    consolidated basis, during such twelve (12)
                                    month period,

                           would not exceed ten percent (10%) of Consolidated
                           Net Tangible Assets determined as at the end of the
                           most recently ended fiscal year of the Company prior
                           to giving effect to such Transfer, and

                                    (B) immediately before and after the
                           consummation of such Transfer, and after giving
                           effect thereto, no Default or Event of Default would
                           exist;

                           (iii) Transfers of Securitization Property to a
                  Restricted Subsidiary or a Special Purpose Subsidiary pursuant
                  to a Permitted Securitization if, immediately before and after
                  the consummation of such Transfer, and after giving effect
                  thereto, no Default or Event of Default would exist;

                           (iv) Transfers of the capital stock of a Special
                  Purpose Subsidiary to the Company or a Restricted Subsidiary
                  if, immediately before and after the consummation of such
                  Transfer, and after giving effect thereto, no Default or Event
                  of Default would exist;

                           (v) any Transfer made pursuant to the Montana
                  Disposition (including without limitation the transfer by the
                  Company of its intellectual property rights to the name
                  Tele-Track, Inc.) or the Arlington Disposition if, immediately
                  before and after the consummation of such Transfer, and after
                  giving effect thereto, no Default or Event of Default would
                  exist; and

                           (vi) any Transfer of Installment Contracts or Leases
                  made to a Dealer due to the termination of a Dealer Agreement,
                  for which Transfer the Company or any of its Restricted
                  Subsidiaries receives an Acceptable Consideration.

                  (B) TRANSFERS OF SUBSIDIARY STOCK. The Company will not, and
         will not permit any Restricted Subsidiary to, Transfer any shares of
         the stock (or any warrants, rights or options to purchase stock or
         other Securities exchangeable for or convertible into stock) of a

                                       12
<PAGE>   13

         Restricted Subsidiary (such stock, warrants, rights, options and other
         Securities herein called "Restricted Subsidiary Stock"), nor will any
         Restricted Subsidiary issue, sell or otherwise dispose of any shares of
         its own Restricted Subsidiary Stock, provided that the foregoing
         restrictions do not apply to:

                           (i) the issuance by a Restricted Subsidiary of shares
                  of its own Restricted Subsidiary Stock to the Company or a
                  Wholly-Owned Restricted Subsidiary;

                           (ii) Transfers by the Company or a Restricted
                  Subsidiary of shares of Restricted Subsidiary Stock to the
                  Company or a Wholly-Owned Restricted Subsidiary;

                           (iii) the issuance by a Restricted Subsidiary of
                  directors' qualifying shares; and

                           (iv) the Transfer of all of the Restricted Subsidiary
                  Stock of a Restricted Subsidiary owned by the Company and the
                  other Restricted Subsidiaries pursuant to the Montana
                  Disposition or the Arlington Disposition or if:

                                    (A) such Transfer satisfies the requirements
                           of Section 6.8(a)(ii);

                                    (B) in connection with such Transfer the
                           entire Investment (whether represented by stock,
                           Debt, claims or otherwise) of the Company and the
                           other Restricted Subsidiaries in such Restricted
                           Subsidiary is Transferred to a Person other than the
                           Company or a Restricted Subsidiary not simultaneously
                           being disposed of;

                                    (C) the Restricted Subsidiary being disposed
                           of has no continuing Investment in any other
                           Restricted Subsidiary not simultaneously being
                           disposed of or in the Company; and

                                    (D) immediately before and after the
                           consummation of such Transfer, and after giving
                           effect thereto, no Default or Event of Default would
                           exist.

         For purposes of determining the book value of Property constituting
         Restricted Subsidiary Stock being Transferred as provided in clause
         (iv) above, such book value shall be deemed to be the aggregate book
         value of all assets of the Restricted Subsidiary that shall have issued
         such Restricted Subsidiary Stock. Any Transfer of Restricted Subsidiary
         Stock pursuant to clause (iv) above shall be deemed to be a Transfer of
         the accounts receivable of such Restricted Subsidiary which must
         satisfy the requirements of Section 6.8(c).

                                       13
<PAGE>   14

                  (C) ACCOUNTS RECEIVABLE. Notwithstanding the provisions of
         Section 6.8(a), except in connection with a Permitted Securitization or
         in connection with the Montana Disposition or the Arlington
         Disposition, neither the Company nor any Restricted Subsidiary will
         Transfer any accounts receivable if the sum of

                           (i) the face value of the accounts receivable
                  proposed to be Transferred, plus

                           (ii) the face value of accounts receivable
                  Transferred by the Company and all Restricted Subsidiaries
                  during the then current fiscal year of the Company,

         would exceed five percent (5%) of the face value of the accounts
         receivable of the Company and the Restricted Subsidiaries determined on
         a consolidated basis as at the end of the most recently ended fiscal
         year of the Company prior to giving effect to such Transfer (but
         excluding for purposes of such calculation accounts receivable
         attributable to assets the title to which is held by a Special Purpose
         Subsidiary pursuant to a Permitted Securitization).

         6.9 LINE OF BUSINESS.

         The Company will not, and will not permit any Restricted Subsidiary to,
engage in, or make any Investment in any business engaged in, the provision of
property and casualty insurance unless the Company or such Restricted Subsidiary
shall maintain reinsurance of its underwriting risk, with one or more reinsurers
rated "A-" or better by Standard & Poor's Ratings Group or (A3) or better by
Moody's Investors Service, Inc., for all of the Company's or such Restricted
Subsidiary's exposure in excess of one hundred percent (100%) of the premiums
written by the Company or such Restricted Subsidiary. In addition to the
foregoing, the Company will not, and will not permit any Restricted Subsidiary
to, engage in any business if, after giving effect thereto, the general nature
of the businesses of the Company and the Restricted Subsidiaries, taken as a
whole, would no longer be the provision of financing programs for the purchase
or lease of used motor vehicles, motor vehicle service protection programs,
credit life, accident and health insurance programs and other programs related
to the foregoing (it being understood that, in the course of the provision of
such programs, the Company may be obligated to remit monies held by it in
connection with dealer holdbacks, claims or refunds under insurance policies,
claims or refunds under service contracts, and to make deposits in trust or
otherwise as required under reinsurance agreements or pursuant to state
regulatory requirements). The Company shall manage and operate such businesses
in substantially the same manner that they are managed and operated as of the
date hereof.

         6.10 TRANSACTIONS WITH AFFILIATES.

         The Company will not, and will not permit any Restricted Subsidiary to,
enter into any transaction, including, without limitation, the purchase, sale or
exchange of Property or the rendering of any service, with any Affiliate, except
(a) a Permitted Securitization or (b) in the ordinary course of and pursuant to
the reasonable requirements of the Company's or such Restricted Subsidiary's

                                       14
<PAGE>   15

business and upon fair and reasonable terms no less favorable to the Company or
such Restricted Subsidiary than would obtain in a comparable arm's-length
transaction with a Person not an Affiliate.

         6.11 MAINTENANCE OF PROPERTIES; CORPORATE EXISTENCE; ETC.

         The Company will, and will cause each Restricted Subsidiary to:

                  (A) PROPERTY -- maintain, preserve and keep its Property in
         good condition and working order, ordinary wear and tear excepted, and
         make all necessary repairs, renewals, replacements, additions,
         betterments and improvements thereto, except where the failure to do so
         could not reasonably be expected to have a Material Adverse Effect;

                  (B) INSURANCE -- maintain, with financially sound and
         reputable insurers, insurance with respect to its Property and business
         against such casualties and contingencies, of such types (including,
         without limitation, insurance with respect to losses arising out of
         Property loss or damage, public liability, business interruption,
         larceny, workers' compensation, embezzlement or other criminal
         misappropriation) and in such amounts as is customary in the case of
         corporations of established reputations engaged in the same or a
         similar business and similarly situated, provided that such insurance
         is commercially available, it being understood that the Company and the
         Restricted Subsidiaries may self-insure against hazards and risks with
         respect to which, and in such amounts as, the Company in good faith
         determines to be prudent and consistent with sound financial and
         business practice;

                  (C) FINANCIAL RECORDS -- keep accurate and complete books of
         records and accounts in which accurate and complete entries shall be
         made of all its business transactions and that will permit the
         provision of accurate and complete financial statements in accordance
         with GAAP;

                  (D) CORPORATE EXISTENCE AND RIGHTS --

                           (i) do or cause to be done all things necessary to
                  preserve and keep in full force and effect its corporate
                  existence, rights (charter and statutory) and franchises,
                  except where the failure to do so, in the aggregate, could not
                  reasonably be expected to have a Material Adverse Effect, and

                           (ii) to maintain each Subsidiary as a Subsidiary,

         in each case except as permitted or required by Section 6.7(a) and
         Section 6.8(b); and

                  (E) COMPLIANCE WITH LAW -- not be in violation of any law,
         ordinance or governmental rule or regulation to which it is subject
         (including, without limitation, any Environmental Protection Law and
         OSHA) and not fail to obtain any license, certificate,

                                       15
<PAGE>   16

         permit, franchise or other governmental authorization necessary to the
         ownership of its Properties or to the conduct of its business if such
         violations or failures to obtain, in the aggregate, could reasonably be
         expected to have a Material Adverse Effect.

         6.12 PAYMENT OF TAXES AND CLAIMS.

         The Company will, and will cause each Subsidiary to, pay before they
become delinquent:

                  (a) all taxes, assessments and governmental charges or levies
         imposed upon it or its Property; and

                  (b) all claims or demands of materialmen, mechanics, carriers,
         warehousemen, vendors, landlords and other like Persons that, if
         unpaid, might result in the creation of a Lien upon its Property;

provided, that items of the foregoing description need not be paid

                           (i) while being contested in good faith and by
                  appropriate proceedings as long as adequate book reserves have
                  been established and maintained and exist with respect
                  thereto, and

                           (ii) so long as the title of the Company or the
                  Subsidiary, as the case may be, to, and its right to use, such
                  Property, is not materially adversely affected thereby.

         6.13 PAYMENT OF NOTES AND MAINTENANCE OF OFFICE.

         The Company will punctually pay, or cause to be paid, the principal of
and interest (and Make-Whole Amount, if any) on, the Notes, as and when the same
shall become due according to the terms hereof and of the Notes, and will
maintain an office at the address of the Company set forth in Section 10.1 where
notices, presentations and demands in respect hereof or of the Notes may be made
upon it. Such office will be maintained at such address until such time as the
Company shall notify the holders of the Notes in writing of any change of
location of such office, which will in any event be located within the United
States of America.

         6.14 PENSION PLANS.

                  (A) COMPLIANCE. The Company will, and will cause each ERISA
         Affiliate to, at all times with respect to each Pension Plan, make
         timely payment of contributions required to meet the minimum funding
         standard set forth in ERISA or the IRC with respect thereto, and to
         comply with all other applicable provisions of ERISA and the IRC.

                  (B) RELATIONSHIP OF VESTED BENEFITS TO PENSION PLAN ASSETS.
         The Company will not at any time permit the present value of all
         employee benefits vested under each Pension

                                       16
<PAGE>   17

         Plan to exceed the assets of such Pension Plan allocable to such vested
         benefits at such time, in each case determined pursuant to Section
         6.14(c).

                  (C) VALUATIONS. All assumptions and methods used to determine
         the actuarial valuation of vested employee benefits under Pension Plans
         and the present value of assets of Pension Plans will be reasonable in
         the good faith judgment of the Company and will comply with all
         requirements of law.

                  (D) PROHIBITED ACTIONS. The Company will not, and will not
         permit any ERISA Affiliate to:

                           (i) engage in any "prohibited transaction" (as
                  defined in section 406 of ERISA or section 4975 of the IRC)
                  that would result in the imposition of a material tax or
                  penalty;

                           (ii) incur with respect to any Pension Plan any
                  "accumulated funding deficiency" (as defined in section 302 of
                  ERISA), whether or not waived;

                           (iii) terminate any Pension Plan in a manner that
                  could result in the imposition of a Lien on the Property of
                  the Company or any Subsidiary pursuant to section 4068 of
                  ERISA or the creation of any liability under section 4062 of
                  ERISA;

                           (iv) fail to make any payment required by section 515
                  of ERISA; or

                           (v) at any time be an "employer" (as defined in
                  section 3(5) of ERISA) required to contribute to any
                  Multiemployer Plan or a "substantial employer" (as defined in
                  section 4001 of ERISA) required to contribute to any Multiple
                  Employer Pension Plan if, at such time, it could reasonably be
                  expected that the Company or any Subsidiary will incur
                  withdrawal liability in respect of such Multiemployer Plan or
                  Multiple Employer Pension Plan and such liability, if
                  incurred, together with the aggregate amount of all other
                  withdrawal liability as to which there is a reasonable
                  expectation of incurrence by the Company or any Subsidiary
                  under any one or more Multiemployer Plans or Multiple Employer
                  Pension Plans, could reasonably be expected to have a Material
                  Adverse Effect.

         6.15 PRO-RATA OFFERS; MANDATORY PURCHASE.

                  (A) GENERAL. Except as provided in Section 6.15(b), the
         Company will not, and will not permit any Subsidiary or any Affiliate
         to, directly or indirectly, acquire or make any offer to acquire any
         Notes unless the Company or such Subsidiary or Affiliate shall have
         offered to acquire Notes, pro rata, from all holders of the Notes and
         upon the same terms. In case the Company acquires any Notes pursuant to
         this Section 6.15, such Notes will immediately thereafter be canceled
         and no Notes will be issued in substitution therefor. Each

                                           17

<PAGE>   18

         purchase of the Notes pursuant to this Section 6.15 shall be applied to
         reduce ratably each of the Mandatory Principal Amortization Payments
         remaining after the date of such purchase.

                  (B) MANDATORY PURCHASE OF NOTES. The Company shall, on or
         before January 15, 2000, acquire from the holders thereof the Notes
         listed on Attachment 6 to the Fourth Amendment (the "Repurchased
         Notes") for a price equal to the outstanding principal amount of such
         Repurchased Notes at such time as set forth on Attachment 6, plus
         interest accrued but unpaid to, but not including, the date of such
         purchase. The Company shall give written notice to the holders of the
         Repurchased Notes, no later than the second Business Day prior to such
         payment, of the date on which such payment is to be made. It is
         understood and acknowledged by the parties to this Agreement that (i)
         compliance by the Company with the obligations in this Section 6.15(b)
         shall not be deemed a breach of any of the Company's obligations under
         Section 4 of this Agreement; (ii) upon payment of the price provided in
         this Section 6.15(b) to the holders of the Repurchased Notes, the
         Company shall immediately cancel the Repurchased Notes and no Notes
         will be issued in substitution therefor (except that a substitute Note
         shall be issued for the balance outstanding if less than the full
         amount of the Note is to be repurchased pursuant hereto); and (iii) the
         Company's failure to comply with the obligation to make any payment
         required by this Section 6.15(b) on or before the required payment date
         shall be considered a failure to make a principal payment when due for
         purposes of Section 8.1(a) of this Agreement. The purchase of
         Repurchased Notes pursuant to this Section 6.15(b) shall be applied to
         reduce ratably each of the Mandatory Principal Amortization Payments
         remaining after the date of such purchase.

         6.16 PRIVATE OFFERING.

         The Company will not, and will not permit any Person acting on its
behalf to, offer the Notes or any part thereof or any similar Securities for
issuance or sale to, or solicit any offer to acquire any of the same from, any
Person so as to bring the issuance and sale of the Notes within the provisions
of section 5 of the Securities Act.

         6.17 DESIGNATION OF SUBSIDIARIES.

                  (A) RIGHT OF DESIGNATION. Subject to the satisfaction of the
         requirements of Section 6.17(c), the Company shall have the right to
         designate any newly acquired or formed Subsidiary as an Unrestricted
         Subsidiary by delivering to each holder of Notes a writing, signed by a
         Vice President or the President of the Company, so designating such
         Subsidiary within thirty (30) days of the acquisition or formation of
         such Subsidiary by the Company or any Restricted Subsidiary. Any such
         Subsidiary so designated within such thirty (30) day period shall be
         deemed to have been an Unrestricted Subsidiary as of the date of such
         acquisition or formation and any such Subsidiary not so designated
         within such thirty (30) day period shall be deemed to have been a
         Restricted Subsidiary as of the date of such acquisition or formation.
         For all purposes of this Agreement, each Subsidiary designated as an
         Unrestricted Subsidiary in Part 6.17(a) of Annex 3 shall, subject to
         Section 6.17(b), be an

                                             18
<PAGE>   19

         Unrestricted Subsidiary and all other Subsidiaries, if any, listed in
         Part 2.3 of Annex 3 shall be Restricted Subsidiaries.

                  (B) RIGHT OF REDESIGNATION. No Restricted Subsidiary shall be
         redesignated as an Unrestricted Subsidiary. Subject to the satisfaction
         of the requirements of Section 6.17(c), the Company may at any time
         designate any Unrestricted Subsidiary as a Restricted Subsidiary by
         delivering a written notice to such effect, signed by a Vice President
         or the Chairman, President or Treasurer of the Company, to each holder
         of Notes.

                  (C) DESIGNATION CRITERIA.

                           (i) No corporation acquired or formed after the
                  Closing Date shall be designated as a Restricted Subsidiary
                  (including deemed designation pursuant to Section 6.17(a))
                  unless:

                                    (A) such Subsidiary at such time meets all
                           of the requirements of a "Restricted Subsidiary" as
                           set forth in the definition thereof; and

                                    (B) immediately before and after, and after
                           giving effect to such designation, no Default or
                           Event of Default exists or would exist.

                           (ii) No Subsidiary shall at any time after the
                  Closing Date be designated as an Unrestricted Subsidiary
                  pursuant to Section 6.17(a) unless:

                                    (A) immediately before and after, and after
                           giving effect to such designation, no Default or
                           Event of Default exists or would exist; and

                                    (B) such Subsidiary does not own, directly
                           or indirectly, any Funded Debt or capital stock of
                           any Restricted Subsidiary.

                  (D) EFFECTIVENESS. Any designation under Section 6.17(b) that
         satisfies all of the conditions set forth in Section 6.17(c) shall
         become effective, for purposes of this Agreement, on the day that
         notice thereof shall have been mailed (postage prepaid, by registered
         or certified mail, return receipt requested) by the Company to each
         holder of Notes at the addresses as provided in Section 10.1.

         6.18 AMENDMENT OF BANK TERM DEBT OR SUBORDINATED DEBT DOCUMENTS;
              TERMINATION OF RESTRICTION ON BANK TERM DEBT AMENDMENTS; NO
              FURTHER RESTRICTIONS ON AMENDMENTS OF THIS AGREEMENT.

                  (A) AMENDMENT OF BANK TERM DEBT OR SUBORDINATED DEBT
         DOCUMENTS. The Company will not amend, modify or otherwise alter (or
         suffer to be amended, modified or

                                       19
<PAGE>   20

         altered), or waive (or permit to be waived), in any material respect,
         any of the terms or provisions of any document or instrument:

                           (i) evidencing or otherwise relating to any Bank Term
                  Debt so as to shorten the maturity or original amortization of
                  such Bank Term Debt, or

                           (ii) evidencing or otherwise relating to any
                  Subordinated Debt so as to increase the original interest rate
                  on, or the principal amount of, such Subordinated Debt,
                  shorten the original amortization of such Subordinated Debt,
                  change any other repayment terms or any default or remedial
                  provisions in any such document or instrument, or change the
                  subordination provisions contained in any such document or
                  instrument,

         in each case without the prior written approval of the Required
         Holders.

                  (B) TERMINATION OF RESTRICTION ON BANK TERM DEBT AMENDMENTS.
         Subject to Section 6.18(c), the provisions of Section 6.18(a), insofar
         as such provisions relate to amendments, modifications, alterations or
         waivers of Bank Term Debt, will terminate and be of no further force or
         effect at such time as the Company causes to be delivered to each
         holder of Notes a duly executed copy of an amendment or modification of
         the Credit Agreement (or any new agreement contemplated by Section
         6.18(c)(ii) below) deleting Section 8.13 of the Credit Agreement (or
         the comparable provision in such new agreement) effective on or prior
         to the date of such delivery.

                  (C) NO FURTHER RESTRICTIONS ON AMENDMENTS OF THIS AGREEMENT.
         The Company will not:

                           (i) amend, modify or otherwise alter (or suffer to be
                  amended, modified or altered) the Credit Agreement (including,
                  without limitation, Section 8.13 thereof) or any document or
                  instrument relating thereto to include any covenant or other
                  provision (other than Section 8.13 of the Credit Agreement as
                  in effect on the Closing Date) that requires, as a condition
                  to the amendment of any term or provision of this Agreement,
                  or the waiver of any term or provision herein, the approval or
                  consent of any other creditor of the Company; or

                           (ii) enter into any other agreement (or suffer to be
                  amended, modified or altered any other agreement to which the
                  Company is a party) that requires, as a condition to the
                  amendment of any term or provision of this Agreement, or the
                  waiver of any term or provision herein, the approval or
                  consent of any other creditor of the Company; provided that if
                  (A) any such agreement is entered into to replace, refinance
                  or supplement the Credit Agreement and (B) Section 8.13 of the
                  Credit Agreement (as in effect on the Closing Date) shall not
                  have been deleted from the Credit Agreement as of the time
                  such new agreement is to be entered into, such new

                                       20
<PAGE>   21

                  agreement may include a covenant substantially the same as
                  (and not more onerous on the Company than) Section 8.13 of the
                  Credit Agreement (as in effect on the Closing Date).

         6.19 AMENDMENT OF SECURITIZATION DOCUMENTS. Once executed and delivered
pursuant to a Permitted Securitization, the Company covenants that it will not
permit the "pertinent terms, conditions or provisions" of the Securitization
Documents to be waived, amended, modified or otherwise altered in any material
respect adverse to the Company or any Restricted Subsidiary or Special Purpose
Subsidiary without the prior written approval of the Required Holders. For
purposes of the Securitization Documents, the "pertinent terms, conditions or
provisions" thereof shall be deemed solely those terms, conditions or provisions
with respect to servicer fees, servicer expenses, defaults, events of default,
recourse to the Company or any Restricted Subsidiary, Cleanup Calls or
conditions contained therein which are required under or necessary for
compliance with this Agreement.

         6.20 RESTRICTED PAYMENTS.

                  (A) The Company shall not, and shall not permit any Restricted
         Subsidiary to, directly or indirectly, declare, make, set apart any
         funds or other property for, or incur any liability to make any
         Restricted Payment unless, at the time of such action, at least two of
         the following four organizations shall have assigned an Investment
         Grade Rating to the Company, the Notes or any other senior unsecured
         debt obligation of the Company: Moody's Investors Service, Inc.,
         Standard & Poor's Ratings Group, the National Association of Insurance
         Commissioners (the "NAIC"), or Fitch Investors Services, Inc.

                  (B) The parties hereto specifically acknowledge that the NAIC
         is not in any way a rating agency with functions such as those
         performed by Moody's Investors Service, Inc., Standard & Poor's Ratings
         Group, or Fitch Investors Services, Inc. Further, the parties hereto
         specifically acknowledge that any rating given to the Notes by the NAIC
         is not to be interpreted as an expression by the NAIC with respect to
         the suitability of an investment in the Notes or the likelihood of any
         payment in respect thereof. In addition, the signatories hereto
         specifically affirm that the holders of the Notes will not obtain any
         benefit from satisfaction of the requirement set forth in Section
         6.20(a).

                  (C) If the NAIC makes specific reference to Section 6.20(a)
         and states that it will withdraw any rating or designation of the
         Notes, or will take any other action adverse to any one or more of the
         holders of the Notes, as a result of the agreement set forth in Section
         6.20(a), the parties hereto hereby agree that:

                           (i) Section 6.20(a) shall, in lieu of the requirement
                  set forth therein, be deemed to require an Investment Grade
                  Rating from at least two of the following three organizations:
                  Moody's Investors Service, Inc., Standard & Poor's Ratings
                  Group, or Fitch Investors Services, Inc.; and

                                       21
<PAGE>   22

                      (ii)  Clause (iii) of the definition of "Investment
                  Grade Rating" shall be deemed to have been deleted.

         Such changes shall take effect upon delivery of written notice to the
         Company by the Required Holders referring to such proposed withdrawal
         or other action and stating that the condition set forth in this
         Section 6.20(c) has occurred.

         6.21 NO SECURITIZATIONS OTHER THAN PERMITTED SECURITIZATIONS. The
Company will not, and will not permit any Restricted Subsidiary to, engage in
any Securitization Transaction other than a Permitted Securitization."

         2.3  SECTION 7.1. Section 7.1 is hereby amended and restated in its
entirety as set forth below.

         "7.1 Financial and Business Information.

         The Company will deliver to each holder of Notes:

                  (A) QUARTERLY STATEMENTS -- as soon as practicable after the
         end of each quarterly fiscal period in each fiscal year of the Company
         (other than the last quarterly fiscal period of each such fiscal year),
         and in any event within sixty (60) days thereafter, duplicate copies of

                      (i)   a consolidated balance sheet of the Company and its
                  consolidated subsidiaries and consolidated and consolidating
                  balance sheets of the Company and the Restricted Subsidiaries,
                  as at the end of such quarter, and

                      (ii)  consolidated statements of income and cash flows of
                  the Company and its consolidated subsidiaries and consolidated
                  and consolidating statements of income and cash flows of the
                  Company and the Restricted Subsidiaries, for such quarter and
                  (in the case of the second and third quarters) for the portion
                  of the fiscal year ending with such quarter,

         setting forth in each case in comparative form the figures for the
         corresponding periods in the immediately preceding fiscal year, all in
         reasonable detail, prepared in accordance with GAAP applicable to
         quarterly financial statements generally, and accompanied by the
         certificate required by Section 7.2, and, in the case of the financial
         statements relating to the Company and its Restricted Subsidiaries,
         certified as complete and correct, subject to changes resulting from
         year-end adjustments, by a Senior Financial Officer, and, in the case
         of the financial statements relating to the Company and its
         consolidated subsidiaries at any time when a Quarterly Report on Form
         10-Q is not filed by the Company with the Securities and Exchange
         Commission and delivered to the holders of the Notes pursuant to clause
         (d) of

                                       22

<PAGE>   23

         this Section 7.1, certified as complete and correct, subject to changes
         resulting from year-end adjustments, by a Senior Financial Officer;

                  (B) ANNUAL STATEMENTS -- as soon as practicable after the end
         of each fiscal year of the Company, and in any event within one hundred
         twenty (120) days thereafter, duplicate copies of

                     (i)    a consolidated balance sheet of the Company and its
                  consolidated subsidiaries and consolidated and consolidating
                  balance sheets of the Company and the Restricted Subsidiaries,
                  as at the end of such year, and

                     (ii)   consolidated statements of income, shareholders'
                  equity and cash flows of the Company and its consolidated
                  subsidiaries and consolidated and consolidating statements of
                  income, shareholders' equity and cash flows of the Company and
                  the Restricted Subsidiaries, for such year,

         setting forth in each case in comparative form the figures for the
         immediately preceding fiscal year, all in reasonable detail, prepared
         in accordance with GAAP, and accompanied by

                            (A) in the case of the financial statements relating
                     to the Company and its consolidated subsidiaries, an
                     opinion of independent certified public accountants of
                     recognized national standing, which opinion shall, without
                     qualification, state that such financial statements present
                     fairly, in all material respects, the financial position of
                     the companies being reported upon and their results of
                     operations and cash flows and have been prepared in
                     conformity with GAAP, and that the examination of such
                     accountants in connection with such financial statements
                     has been made in accordance with generally accepted
                     auditing standards, and that such audit provides a
                     reasonable basis for such opinion in the circumstances, and

                            (B) in the case of the financial statements relating
                     to the Company and its Restricted Subsidiaries, certified
                     as complete and correct by a Senior Financial Officer, and

                            (C) the certificate required by Section 7.2 and, in
                     the case of the financial statements relating to the
                     Company and its consolidated subsidiaries, the certificate
                     required by Section 7.3;

                 (C) AUDIT REPORTS -- promptly upon receipt thereof, a copy of
         each other report submitted to the Company or any Restricted Subsidiary
         by independent accountants in connection with any management report,
         special audit report or comparable analysis prepared by them with
         respect to the books of the Company or any Restricted Subsidiary;

                                       23

<PAGE>   24

                 (D) SEC AND OTHER REPORTS -- promptly upon their becoming
         available, a copy of each financial statement, report (including,
         without limitation, each Quarterly Report on Form 10-Q, each Annual
         Report on Form 10-K and each Current Report on Form 8-K), notice or
         proxy statement sent by the Company or any Subsidiary to stockholders
         generally and of each regular or periodic report and any registration
         statement, prospectus or written communication (other than transmittal
         letters), and each amendment thereto, in respect thereof filed by the
         Company or any Subsidiary with, or received by, such Person in
         connection therewith from, the National Association of Securities
         Dealers, any securities exchange or the Securities and Exchange
         Commission or any successor agency;

                 (E) ERISA --

                     (i)   immediately upon becoming aware of the occurrence of
                           any

                           (A) "reportable event" (as defined in section 4043 of
                     ERISA), excluding, however, such events as to which the
                     PBGC by regulation shall have waived the requirement of
                     section 4043(a) of ERISA that it be notified within thirty
                     (30) days of the occurrence of such event (provided that a
                     failure to meet the minimum funding standard of section 412
                     of the IRC and of section 302 of ERISA shall not be so
                     excluded regardless of the issuance of any such waiver of
                     the notice requirement in accordance with either section
                     4043(a) of ERISA or section 412(d) of the IRC), or

                           (B) "prohibited transaction" (as defined in section
                     406 of ERISA or section 4975 of the IRC),

                 in connection with any Pension Plan or any trust created
                 thereunder, a written notice specifying the nature thereof,
                 what action the Company is taking or proposes to take with
                 respect thereto and, when known, any action taken by the IRS,
                 the DOL or the PBGC with respect thereto, and

                     (ii)  prompt written notice of and, where applicable, a
                           description of

                           (A) any notice from the PBGC in respect of the
                     commencement of any proceedings pursuant to section 4042 of
                     ERISA to terminate any Pension Plan or for the appointment
                     of a trustee to administer any Pension Plan,

                           (B) any distress termination notice delivered to the
                     PBGC under section 4041 of ERISA in respect of any Pension
                     Plan, and any determination of the PBGC in respect thereof,

                           (C) the placement of any Multiemployer Plan in
                     reorganization status under Title IV of ERISA,

                                       24

<PAGE>   25

                                    (D) any Multiemployer Plan becoming
                           "insolvent" (as defined in section 4245 of ERISA)
                           under Title IV of ERISA, and

                                    (E) the whole or partial withdrawal of the
                           Company or any ERISA Affiliate from any Multiemployer
                           Plan or Multiple Employer Pension Plan and the
                           withdrawal liability incurred in connection
                           therewith;

                  (F)      ACTIONS, PROCEEDINGS -- promptly after the
         commencement thereof, notice of any action or proceeding relating to
         the Company or any Subsidiary in any court or before any Governmental
         Authority or arbitration board or tribunal as to which there is a
         reasonable possibility of an adverse determination and that, if
         adversely determined, would have a Material Adverse Effect;

                  (G)      CERTAIN ENVIRONMENTAL MATTERS -- prompt written
         notice of and a description of any event or circumstance that, had such
         event or circumstance occurred or existed immediately prior to the
         Closing Date, would have been required to be disclosed as an exception
         to any statement set forth in Section 2.13;

                  (H)      NOTICE OF DEFAULT OR EVENT OF DEFAULT -- immediately
         upon becoming aware of the existence of any condition or event that
         constitutes a Default or an Event of Default, a written notice
         specifying the nature and period of existence thereof and what action
         the Company is taking or proposes to take with respect thereto;

                  (I)      NOTICE OF CLAIMED DEFAULT -- immediately upon
         becoming aware that the holder of any Note, or of any Debt or any
         Security of the Company or any Subsidiary, shall have given notice or
         taken any other action with respect to a claimed Default, Event of
         Default, default or event of default, a written notice specifying the
         notice given or action taken by such holder and the nature of the
         claimed Default, Event of Default, default or event of default and what
         action the Company is taking or proposes to take with respect thereto;
         and

                  (J)      REQUESTED INFORMATION -- with reasonable promptness,
         such other data and information as from time to time may be reasonably
         requested by any holder of Notes, including, without limitation,

                           (i)   copies of any statement, report or certificate
                  furnished to any holder of any Debt or any Security of the
                  Company or any Subsidiary,

                           (ii)  information requested to comply with any
                  request of the National Association of Insurance Commissioners
                  in respect of the designation of the Notes, and

                                       25

<PAGE>   26

                           (iii) information requested to comply with 17 C.F.R.
                  ss.230.144A, as amended from time to time;

         provided that any such request with respect to any of the data and
         information referred to in the foregoing clauses (i), (ii) and (iii)
         shall be deemed to be reasonable for purposes of this Section 7.1(j).

         In addition to the foregoing, the Company will also deliver to each
holder of Notes:

                           (1)   as soon as available, and in any event within
                  sixty (60) days of the end of each fiscal quarter, (A) a
                  "static pool analysis" substantially in the form of Exhibit F
                  attached hereto and in any event satisfactory in form and
                  substance to the Required Holders, which analyzes the
                  performance of the Company's and each Restricted Subsidiary's
                  Installment Contracts (segregated between the Company's North
                  American operations and its UK operations) on a quarterly
                  basis, and (B) for quarters beginning with the quarter ended
                  September 30, 1999, a comparable "static pool analysis" which
                  analyzes the performance of the Company's and each Restricted
                  Subsidiary's Leases on a quarterly basis (segregated between
                  the Company's North American operations and its UK
                  operations), in each case, with respect to clauses (A) and (B)
                  above, certified by an authorized officer of the Company as to
                  consistency with prior such analyses, accuracy and fairness of
                  presentation;

                           (2)   promptly upon the request of the Required
                  Holders from time to time (but no more often than
                  semi-annually), a "static pool analysis" which analyzes the
                  performance of any Installment Contracts or Leases transferred
                  or encumbered pursuant to a Permitted Securitization
                  comparable to the static pool analysis required to be
                  delivered pursuant to clause (1) of this Section 7.1(j); and

                           (3)   within five (5) Business Days after the
                  execution and delivery thereof, a copy of any amendment to, or
                  waiver of any provisions of, the Credit Agreement or
                  Securitization Documents (in each case, as from time to time
                  amended, restated, refinanced, replaced or supplemented)."

         2.4      SECTION 9.1. Section 9.1 is hereby amended and restated in its
                  entirety as set forth below.

         "9.1     TERMS DEFINED.

         As used herein, the following terms have the respective meanings set
forth below or set forth in the Section hereof following such term:

         ACCEPTABLE CONSIDERATION -- means, with respect to any Transfer of any
Property of the Company or a Restricted Subsidiary, cash consideration,
promissory notes or such other

                                       26

<PAGE>   27

consideration (or any combination of the foregoing) received by such Person in
connection with such Transfer as is, in each case, determined by the Board of
Directors, in its good faith opinion, to be in the best interests of the Company
and to reflect the Fair Market Value of such Property. It is understood that the
Company's or such Restricted Subsidiary's acceptance of any such consideration
in connection with such Transfer will constitute an Investment and may,
depending upon the form of such consideration, constitute a Restricted
Investment made by the Company or such Restricted Subsidiary.

         ADVANCES -- means, at any time, the dollar amount of advances in
respect of Installment Contracts, as such amount would appear in the footnotes
to the financial statements of the Company and the Restricted Subsidiaries
prepared in accordance with GAAP (if such amount would not appear net of
reserves, then net of any reserves established by the Company as an allowance
for credit losses related to such advances not expected to be recovered),
provided that Advances shall not include (a) any such advances (and the related
Installment Contracts) transferred or encumbered pursuant to a Permitted
Securitization (whether or not attributable to the Company under GAAP) unless
and until such advances (and the related Installment Contracts) are reassigned
to the Company or a Restricted Subsidiary or such encumbrances are discharged,
or (b) Charged-Off Advances to the extent that such Charged-Off Advances exceed
the portion of the Company's allowance for credit losses related to reserves
against such advances not expected to be recovered, as such allowance would
appear in the footnotes to the financial statements of the Company and the
Restricted Subsidiaries prepared in accordance with GAAP.

         AFFILIATE -- means, at any time, a Person (other than a Restricted
Subsidiary):

                  (a) that directly or indirectly through one or more
         intermediaries Controls, or is Controlled by, or is under common
         Control with, the Company;

                  (b) that beneficially owns or holds five percent (5%) or more
         of any class of the Voting Stock of the Company;

                  (c) five percent (5%) or more of the Voting Stock (or in the
         case of a Person that is not a corporation, five percent (5%) or more
         of the equity interest) of which is beneficially owned or held by the
         Company or a Subsidiary; or

                  (d) that is an officer or director (or a member of the
         immediate family of an officer or director) of the Company or any
         Subsidiary; at such time.

As used in this definition:

                  CONTROL -- means the possession, directly or indirectly, of
         the power to direct or cause the direction of the management and
         policies of a Person, whether through the ownership of voting
         securities, by contract or otherwise.

                                       27

<PAGE>   28

         AGREEMENT, THIS -- means this agreement, as it may be amended and
restated from time to time.

         ALLOWANCES FOR CREDIT LOSSES -- means those allowances or reserves
established by the Company or its Restricted Subsidiaries in arriving at
installment contracts receivable, net or Leased Vehicles, as the case may be, on
its Consolidated balance sheets, as specifically identified in such financial
statements or as disclosed in the footnotes thereto, provided that Allowances
for Credit Losses shall not include allowances or reserves attributable to
retail installment contracts or leases which are not at such time "Installment
Contracts" or "Leases", as the case may be, due to the proviso in the definition
of such terms in this Agreement.

         ARLINGTON DISPOSITION -- means the sale of the business of Arlington
Investment Company and/or any of its subsidiaries for net proceeds totaling at
least $4,000,000 in cash (all of which net proceeds are used to reduce Debt
outstanding under the Credit Agreement), pursuant to (i) the sale of all or
substantially all of the assets of Arlington Investment Company and/or any of
its subsidiaries or divisions, (ii) the sale of all of the capital stock of
Arlington Investment Company and/or any of its subsidiaries or (iii) the merger
of Arlington Investment Company and/or any of its subsidiaries with and into any
Person other than the Company or a Restricted Subsidiary; in each case,
immediately prior to and immediately after the consummation of which, and after
giving effect thereto, no Default or Event of Default would exist.

         BACK-END DEALER AGREEMENT(S) -- means Dealer Agreements referred to in
clause (a) of the definition of Dealer Agreements.

         BANK TERM DEBT -- means term Debt of the Company or any Restricted
Subsidiary owed to banks and having an initial maturity of more than one (1)
year and a fixed amortization schedule, but in any event excluding any Debt
which by its terms is permitted to be readvanced or reborrowed, whether or not
subject to mandatory reductions or stepdowns in the availability thereof.

         BANKS -- means the Banks that are parties to the Credit Agreement.

         BOARD OF DIRECTORS -- means the board of directors of the Company or
any committee thereof that, in the instance, shall have the lawful power to
exercise the power and authority of such board of directors.

         BUSINESS DAY -- means, at any time, a day other than a Saturday, a
Sunday or a day on which the bank designated by the holder of a Note to receive
(for such holder's account) payments on such Note is required by law (other than
a general banking moratorium or holiday for a period exceeding four (4)
consecutive days) to be closed.

         CAC INTERNATIONAL -- means CAC International, Inc., a wholly-owned
Subsidiary of the Company.

                                       28

<PAGE>   29

         CAC LIFE -- means Credit Acceptance Corporation Life Insurance Company,
a Wholly-Owned Restricted Subsidiary of the Company.

         CAC UK -- means Credit Acceptance Corporation UK Limited, a
wholly-owned Subsidiary of the Company incorporated under the laws of England
for the purpose of acquiring substantially all of the assets of CAC
International.

         CAPITAL ASSETS -- means all assets of a Person other than Intangible
Assets, inventories, accounts receivable and Investments (as defined in clause
(a) of the definition of such term) in and Securities of any other Person.

         CAPITAL LEASE -- means, at any time, a lease with respect to which the
lessee is required by GAAP to recognize the acquisition of an asset and the
incurrence of a liability at such time.

         CHANGE IN CONTROL -- means, at any time, either

                  (a) the failure of Donald A. Foss, his wife and children, or
         trusts for his or their benefit, to beneficially own, in the aggregate,
         at least thirty-five percent (35%) (by number of votes) of the Voting
         Stock of the Company outstanding at such time (excluding for such
         purpose Persons who own shares through any employee benefit plan of the
         Company or any trust established in connection therewith), or

                  (b) except for the individuals and trusts identified in the
         foregoing clause (a), the acquisition, holding or control (whether
         directly or indirectly) by

                      (i)   any "person" (as such term is used in section 13(d)
                  and section 14(d)(2) of the Exchange Act as in effect on the
                  Closing Date), or

                      (ii)  related Persons constituting a "group" (as such term
                  is used in Rule 13d-5 under the Exchange Act as in effect on
                  the Closing Date),

         of beneficial ownership of more than twenty-five percent (25%) (by
         number of votes) of the Voting Stock of the Company outstanding at such
         time (excluding for such purpose Persons who own shares through any
         employee benefit plan of the Company or any trust established in
         connection therewith), or

                  (c) all or substantially all of the assets of the Company are
         sold or otherwise transferred, in a single transaction or in a series
         of related transactions, to any "person" or "group of persons" (as such
         terms are used in section 13(d)(3) of the Exchange Act as in effect on
         the Closing Date).

                                       29

<PAGE>   30

         CHARGED-OFF ADVANCES -- means those Advances which the Company or any
of its Restricted Subsidiaries has determined, based on the application of a
static pool analysis or otherwise are completely or partially impaired, to the
extent of such impairment.

         CHARGED-OFF LEASE ADVANCES -- means those Leased Vehicles which the
Company or any of its Subsidiaries has determined, based on the application of a
static pool or comparable analysis or otherwise, are completely or partially
impaired, to the extent of such impairment.

         CLEANUP CALL(S) -- means

                  (a) in the case of an optional cleanup call, a cleanup call to
         be exercised at the option of the Company or a Special Purpose
         Subsidiary under the terms of the applicable Permitted Securitization
         (provided that, both before and after giving effect thereto, no Default
         or Event of Default has occurred and is continuing when such option is
         exercised), in an amount not in excess of (i) Fifteen Percent (15%) of
         the initial amount received by the Company or the Special Purpose
         Subsidiary pursuant to such Permitted Securitization (before fees and
         other deductions), it being understood that, for purposes of this
         clause (a)(i) of this definition, each tranche of a multi-tranche
         Permitted Securitization shall be considered a separate Permitted
         Securitization or (ii) in the case of any Securitization Transaction
         structured on a revolving basis, Fifteen Percent (15%) of the maximum
         aggregate availability at any time to the Company or a Special Purpose
         Subsidiary, and

                  (b) in the case of a mandatory cleanup call, a mandatory
         cleanup call to be exercised at the option of the investors under the
         terms of the applicable Permitted Securitization(s), in an amount not
         in excess of (i) Two and One-Half Percent (2 1/2%) of the aggregate
         amount received by the Company or the Special Purpose Subsidiary
         pursuant to the Permitted Securitization (before fees and other
         deductions), it being understood that, for purposes of this clause
         (b)(i) of this definition, all tranches of a multi-tranche Permitted
         Securitization shall be together be considered one Permitted
         Securitization, or (ii) in the case of any Securitization Transaction
         structured on a revolving basis, Two and One-Half Percent (2 1/2%) of
         the maximum aggregate availability at any time to the Company or a
         Special Purpose Subsidiary,

in either case, such Cleanup Call being accompanied by the repurchase of or
release of encumbrances on Advances, Leased Vehicles, Installment Contracts
(whether assigned outright or related to Advances) or Leases (whether assigned
outright or related to Leased Vehicles), as the case may be, previously
transferred or encumbered pursuant to such Permitted Securitization in at least
the amount of such cleanup call.

         CLOSING -- Section 1.2(b).

         CLOSING DATE -- Section 1.2(b).

         COMPANY -- introductory paragraph hereof.

                                       30

<PAGE>   31

         CONSOLIDATED CURRENT LIABILITIES -- means, at any time, the aggregate
amount of current liabilities of the Company and the Restricted Subsidiaries,
determined at such time after eliminating inter-company transactions among the
Company and the Restricted Subsidiaries and liabilities incurred solely by a
Special Purpose Subsidiary pursuant to a Permitted Securitization but
attributable to the Company or a Restricted Subsidiary under GAAP.

         CONSOLIDATED FIXED CHARGES -- means, for any period, the sum of

                  (a) Consolidated Interest Expense for such period, plus

                  (b) the amount payable in respect of such period with respect
         to Operating Rentals payable by the Company and the Restricted
         Subsidiaries, determined after eliminating intercompany transactions
         among the Company and the Restricted Subsidiaries.

         CONSOLIDATED INCOME AVAILABLE FOR FIXED CHARGES -- means, for any
period, the sum of

                  (a) Consolidated Net Income, plus

                  (b) the aggregate amount of income taxes, depreciation,
         amortization (including the amortization of any excess servicing asset)
         and Consolidated Fixed Charges (to the extent, and only to the extent,
         that such aggregate amount was reflected in the computation of
         Consolidated Net Income for such period), plus

                  (c) with respect to the periods ending September 30, 1997,
         December 31, 1997, March 31, 1998 and June 30, 1998, $30,000,000
         representing the portion of the non-cash charge recorded by the Company
         during the period ended September 30, 1997 attributable to the present
         valuing of future cash flows consistent with Statement of Financial
         Accounting Standards No. 114 `Accounting by Creditors for Impairment of
         a Loan', plus

                  (d) with respect to the periods ending September 30, 1999,
         December 31, 1999, March 31, 2000 and June 30, 2000, $47,300,000
         representing the accounting adjustment to the Company's reserve against
         advances recorded by the Company during the period ended September 30,
         1999,

in each case accrued for such period by the Company and the Restricted
Subsidiaries, determined on a consolidated basis for such Persons.

         CONSOLIDATED INTEREST EXPENSE -- means, for any period, the amount of
interest accrued or capitalized on, or with respect to, Consolidated Total Debt
for such period, including, without limitation, amortization of debt discount,
imputed interest on Capital Leases and interest on the Notes.

                                       31

<PAGE>   32

         CONSOLIDATED NET INCOME -- means, for any period, net earnings (or
loss) after income taxes of the Company and the Restricted Subsidiaries,
determined on a consolidated basis for such Persons, but excluding:

                  (a) net earnings (or loss) of any Restricted Subsidiary
         accrued prior to the date it became a Restricted Subsidiary;

                  (b) any gain or loss (net of tax effects applicable thereto)
         resulting from the sale, conversion or other disposition of Capital
         Assets other than in the ordinary course of business;

                  (c) any extraordinary or nonrecurring gains or losses
         (including, without limitation, any gain on sale generated by a
         Permitted Securitization, except to the extent the Company has received
         a cash benefit therefrom in the applicable reporting period); and any
         interest income generated by a Permitted Securitization, except to the
         extent the Company has received a cash benefit therefrom in the
         applicable reporting period;

                  (d) any gain arising from any reappraisal or write-up of
         assets;

                  (e) any portion of the net earnings of any Restricted
         Subsidiary that for any reason is unavailable for payment of dividends
         to the Company or a Restricted Subsidiary, provided that the net
         earnings of CAC Life that are unavailable (due to regulatory
         requirements applicable to CAC Life) for the payment of dividends to
         the Company may be included in the determination of Consolidated Net
         Income, to the extent that such unavailable net earnings do not exceed
         five percent (5%) of Consolidated Net Income (determined without giving
         effect to this proviso), and provided, further that so long as the net
         earnings of CAC Life shall be included in Consolidated Net Income
         pursuant to the preceding proviso, CAC Life shall not have outstanding
         any Debt, regardless of whether any other Restricted Subsidiary may be
         permitted to have Debt outstanding at such time by reason of a waiver
         of or an amendment to Section 6.1(d);

                  (f) any gain or loss (net of tax effects applicable thereto)
         during such period resulting from the receipt of any proceeds of any
         insurance policy;

                  (g) any earnings of any Person acquired by the Company or any
         Restricted Subsidiary through purchase, merger or consolidation or
         otherwise, or earnings of any Person substantially all of whose assets
         have been acquired by the Company or any Restricted Subsidiary, for any
         period prior to the date of acquisition;

                  (h) net earnings of any Person (other than a Restricted
         Subsidiary) in which the Company or any Restricted Subsidiary shall
         have an ownership interest unless such net earnings shall have actually
         been received by the Company or such Restricted Subsidiary in the form
         of cash distributions; and

                                       32

<PAGE>   33

                  (i) any restoration during such period to income of any
         contingency reserve, except to the extent that provision for such
         reserve

                      (i)   was made during such period out of income accrued
                  during such period,

                      (ii)  was made in connection with the Company's program of
                  financing Installment Contracts or Leases

                                 (A) to provide for warranty claims for which
                            the Company may be responsible, or

                                 (B) to cover credit losses in connection with
                            Advances, Installment Contracts, Leased Vehicles or
                            Leases,

                      or

                      (iii) is required by applicable law with respect to
                  reserves for claims related to the operation of CAC Life,

         provided that the aggregate restoration to income during any period
         from reserves described in clause (ii) and clause (iii) above shall not
         exceed ten percent (10%) of Consolidated Net Income for such period,
         prior to giving effect to such restoration.

         CONSOLIDATED NET TANGIBLE ASSETS -- means, at any time, the remainder
of

                  (a) Consolidated Total Assets at such time minus

                  (b) the sum of

                      (i)   Consolidated Current Liabilities at such time, plus

                      (ii)  Intangible Assets of the Company and the
                  Restricted Subsidiaries as would be reflected on a
                  consolidated balance sheet of such Persons at such time.

         CONSOLIDATED SENIOR FUNDED DEBT -- means, at any time, Funded Debt of
the Company and the Restricted Subsidiaries, other than Subordinated Funded
Debt, determined on a consolidated basis for such Persons at such time.

         CONSOLIDATED SUBORDINATED FUNDED DEBT -- means, at any time, the
aggregate amount of Subordinated Funded Debt of the Company and the Restricted
Subsidiaries, determined on a consolidated basis for such Persons at such time.

         CONSOLIDATED TANGIBLE NET WORTH -- means, at any time, the result of

                                       33

<PAGE>   34

                  (a)      the shareholders' equity of the Company and its
                           Subsidiaries, minus

                  (b)      the retained earnings of the Unrestricted
                           Subsidiaries, minus

                  (c)      all Intangible Assets of the Company and the
                           Subsidiaries, minus

                  (d)      without duplication, (i) any excess servicing asset
                           resulting from the Transfer, pursuant to a Permitted
                           Securitization, of Advances, Leased Vehicles,
                           Installment Contracts (whether assigned outright or
                           related to Advances) or Leases (whether assigned
                           outright or related to Leased Vehicles) and (ii) the
                           equity interest in any Special Purpose Subsidiary to
                           the extent such equity interest is included in
                           Consolidated Net Worth,

in each case as would be reflected on a consolidated balance sheet of such
Persons at such time. As used in this definition, "Consolidated Net Worth"
means, at any time, the amount of "consolidated total assets" less the amount of
"consolidated total liabilities", as each would be reflected on a consolidated
balance sheet of the Company and its Subsidiaries at such time, prepared in
accordance with GAAP.

         CONSOLIDATED TOTAL ASSETS -- means, at any time, all assets of the
Company and the Restricted Subsidiaries, determined on a consolidated basis for
such Persons at such time (but excluding from the determination thereof, without
duplication, (a) any excess servicing asset resulting from the Transfer,
pursuant to a Permitted Securitization, of Advances, Leased Vehicles,
Installment Contracts (whether assigned outright or related to Advances) or
Leases (whether assigned outright or related to Leased Vehicles) and (b) the
equity interest in any Special Purpose Subsidiary to the extent such equity
interest is included in the assets of the Company and the Restricted
Subsidiaries, determined on a consolidated basis in accordance with GAAP for
such Persons at such time).

         CONSOLIDATED TOTAL DEBT -- means, at any time, the aggregate amount of
Funded Debt and Current Debt of the Company and the Restricted Subsidiaries,
determined on a consolidated basis for such Persons at such time.

         CONTROL EVENT -- means the execution of any written agreement that,
when fully performed by the parties thereto, would result in a Change in
Control.

         CONTROL PREPAYMENT DATE -- Section 4.3(a).

         CREDIT AGREEMENT -- means the Credit Agreement described in Part 2.2(b)
of Annex 3, as may be amended, restated, refinanced, replaced, supplemented or
otherwise modified from time to time.

                                       34

<PAGE>   35

         CURRENT DEBT -- means, with respect to any Person, at any time, all
Debt of such Person other than Funded Debt.

         DEALER -- means a Person engaged in the business of the retail sale or
lease of new or used motor vehicles, including businesses exclusively selling or
leasing used motor vehicles and businesses principally selling or leasing new
motor vehicles, but having a used vehicle department, including any such Person
which constitutes an Affiliate of the Company.

         DEALER AGREEMENTS -- means the sales and/or servicing agreements
between the Company or its Subsidiaries and a participating Dealer which sets
forth the terms and conditions under which the Company or its Subsidiaries (a)
accepts, as nominee for such Dealer, the assignment of Installment Contracts or
Leases for purposes of administration, servicing and collection and under which
the Company or its Subsidiary may make advances to such Dealers included in
Advances or Leased Vehicles and (b) accepts outright assignments of Installment
Contracts or Leases from Dealers or funds Installment Contracts or Leases
originated by such Dealer in the name of the Company or any of its Subsidiaries,
in each case as such agreements may be in effect from time to time.

         DEBT -- means, with respect to any Person, without duplication:

                  (a) its liabilities for borrowed money (whether or not
         evidenced by a Security);

                  (b) any liabilities secured by any Lien existing on Property
         owned by such Person (whether or not such liabilities have been
         assumed);

                  (c) its liabilities in respect of Capital Leases;

                  (d) the present value of all payments due under any
         arrangement for retention of title or any conditional sale agreement
         (other than a Capital Lease) discounted at the implicit rate, if known,
         with respect thereto or, if unknown, at eight and eighty-seven
         one-hundredths percent (8.87%) per annum; and

                  (e) its Guaranties of any liabilities of another Person
         constituting liabilities of a type set forth above.

Except as provided in Section 6.1(a)(i), neither Debt of any Special Purpose
Subsidiary which is an Unrestricted Subsidiary incurred pursuant to a Permitted
Securitization (whether or not such Debt is reflected on the consolidated
balance sheet of the Company and its Restricted Subsidiaries prepared in
accordance with GAAP) nor dealer holdbacks shall be considered Debt of the
Company or any Restricted Subsidiary.

         DEFAULT -- means an event or condition the occurrence of which would,
with the lapse of time or the giving of notice or both, become an Event of
Default.

                                       35

<PAGE>   36

         DOL -- means the Department of Labor and any successor agency.

         DOLLARS or $ -- means United States of America dollars.

         ENVIRONMENTAL PROTECTION LAWS -- means any federal, state, county,
regional or local law, statute or regulation (including, without limitation,
CERCLA, RCRA and SARA) enacted in connection with or relating to the protection
or regulation of the environment, including, without limitation, those laws,
statutes and regulations regulating the disposal, removal, production, storing,
refining, handling, transferring, processing or transporting of Hazardous
Substances, and any regulations issued or promulgated in connection with such
statutes by any Governmental Authority, and any orders, decrees or judgments
issued by any court of competent jurisdiction in connection with any of the
foregoing.

As used in this definition:

                  CERCLA -- means the Comprehensive Environmental Response,
         Compensation, and Liability Act of 1980, as amended from time to time
         (by SARA or otherwise), and all rules and regulations promulgated in
         connection therewith.

                  RCRA -- means the Resource Conservation and Recovery Act of
         1976, as amended from time to time, and all rules and regulations
         promulgated in connection therewith.

                  SARA -- means the Superfund Amendments and Reauthorization Act
         of 1986, as amended from time to time, and all rules and regulations
         promulgated in connection therewith.

         EQUITY OFFERING -- means the issuance and sale for cash by the Company
or any of its Restricted Subsidiaries of additional capital stock or other
equity interests, other than upon the exercise of employee and dealer stock
options pursuant to stock option plans maintained or offered by the Company or
its Restricted Subsidiaries in the ordinary course of business and not in
anticipation of any sale of capital stock or equity interests to the general
public.

         ERISA -- means the Employee Retirement Income Security Act of 1974, as
amended from time to time.

         ERISA AFFILIATE -- means any corporation or trade or business that:

                  (a) is a member of the same controlled group of corporations
         (within the meaning of section 414(b) of the IRC) as the Company; or

                  (b) is under common control (within the meaning of section
         414(c) of the IRC) with the Company.

                                       36

<PAGE>   37

         EVENT OF DEFAULT -- Section 8.1.

         EXCHANGE ACT -- means the Securities Exchange Act of 1934, as amended.

         EXCLUDED TRANSFERS -- Section 6.8(a).

         FAIR MARKET VALUE -- means, at any time, with respect to any Property,
the sale value of such Property that would be realized in an arm's-length sale
at such time between an informed and willing buyer and an informed and willing
seller under no compulsion to buy or sell, respectively.

         FIRST AMENDED AND RESTATED NOTES -- Section  1.1(b).

         FOREIGN PENSION PLAN --  means any plan, fund or other similar program

                  (a) established or maintained outside of the United States of
         America by any one or more of the Company or the Subsidiaries primarily
         for the benefit of the employees (substantially all of whom are aliens
         not residing in the United States of America) of the Company or such
         Subsidiaries which plan, fund or other similar program provides for
         retirement income for such employees or results in a deferral of income
         for such employees in contemplation of retirement, and

                  (b) not otherwise subject to ERISA.

         401(K) PLAN -- Section 2.12(a).

         FOURTH AMENDMENT -- means the Fourth Amendment, dated as of December 1,
1999, to this Agreement.

         FUNDED DEBT -- means, at any time of determination, with respect to any
borrower, all Debt of such borrower that is expressed to mature more than one
(1) year from the date of the creation thereof or that is extendible or
renewable at the option of such borrower to a time more than one (1) year after
the date of the creation thereof (whether or not at such time of determination
such Debt is payable within one (1) year).

         GAAP -- means accounting principles as promulgated from time to time in
statements, opinions and pronouncements by the American Institute of Certified
Public Accountants and the Financial Accounting Standards Board and in such
statements, opinions and pronouncements of such other entities with respect to
financial accounting of for-profit entities as shall be accepted by a
substantial segment of the accounting profession in the United States.

                                       37

<PAGE>   38
         GOVERNMENTAL AUTHORITY -- means:

                  (a) the government of

                      (i)   the United States of America and any state or other
                  political subdivision thereof, or

                      (ii)  any other jurisdiction (y) in which the Company or
                  any Subsidiary conducts all or any part of its business or (z)
                  that asserts jurisdiction over the conduct of the affairs or
                  Properties of the Company or any Subsidiary; and

                  (b) any entity exercising executive, legislative, judicial,
         regulatory or administrative functions of, or pertaining to, any such
         government.

         GROSS ADVANCES -- means, as of any applicable date of determination,
the dollar amount of Advances, plus any reserves established by the Company as
an allowance for credit losses related to such advances not expected to be
recovered, plus Charged-Off Advances to the extent such Charged-Off Advances
exceed the amount of such reserves.

         GROSS CURRENT INSTALLMENT CONTRACT RECEIVABLES -- means, as of any
applicable date of determination, the aggregate amount of Gross Installment
Contract Receivables, less the amount of such receivables which are classified
as being on "non-accrual" in the financial statements of the Company and its
Restricted Subsidiaries prepared in accordance with GAAP.

         GROSS CURRENT LEASED VEHICLES -- means, as of any applicable date of
determination, the aggregate amount of Gross Leased Vehicles, less the amount of
Leased Vehicles in respect of which the underlying Leases are classified as
being on "non-accrual" in the financial statements of the Company and its
Restricted Subsidiaries prepared in accordance with GAAP.

         GROSS DEALER HOLDBACKS -- means the aggregate amount, as of any
applicable date of determination, of dealer holdbacks utilized in arriving at
"Dealer holdbacks, net" on the consolidated balance sheet of the Company and its
Restricted Subsidiaries, as disclosed in the footnotes thereto, provided that
Gross Dealer Holdbacks shall not include the amount of dealer holdbacks
attributable to retail installment contracts which are not at such time
"Installment Contracts" due to the proviso in the definition of such term in
this Agreement.

         GROSS INSTALLMENT CONTRACT RECEIVABLES -- means, as of any applicable
date of determination, the aggregate amount of installment contract receivables
utilized in arriving at "Installment contract receivables, net" on the
consolidated balance sheet of the Company and its Restricted Subsidiaries, as
determined in the footnotes thereto, provided that Gross Installment Contract
Receivables shall not include receivables attributable to retail installment
contracts which are not at such time "Installment Contracts" due to the proviso
in the definition of such term in this Agreement.

         GROSS LEASED VEHICLES -- means, as of any applicable date of
determination, the dollar amount of Leased Vehicles, plus any reserves
established by the Company as an allowance for credit

                                       38

<PAGE>   39

losses related to such Leased Vehicles not expected to be recovered, plus
Charged-Off Lease Advances to the extent such Charged-Off Lease Advances exceed
the amount of such reserves, provided that Gross Leased Vehicles shall not
include the dollar amount of Leased Vehicles attributable to leases which are
not at such time "Leases" due to the proviso in the definition of such term in
this Agreement.

         GUARANTY -- means, with respect to any Person (for the purposes of this
definition, the "Guarantor"), any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection)
of the Guarantor guaranteeing or in effect guaranteeing (including, without
limitation, by means of a surety bond, letter of credit or other similar
instrument, whether or not designated as a "guaranty") any indebtedness,
dividend or other obligation of any other Person (the "Primary Obligor") in any
manner, whether directly or indirectly, including, without limitation,
obligations incurred through an agreement, contingent or otherwise, by the
Guarantor:

                  (a) to purchase such indebtedness or obligation or any
         Property constituting security therefor;

                  (b) to advance or supply funds

                      (i)   for the purpose of payment of such indebtedness or
                  obligation, or

                      (ii)  to maintain working capital or other balance sheet
                  (or statement of financial condition) condition or any income
                  statement condition of the Primary Obligor or otherwise to
                  advance or make available funds for the purchase or payment of
                  such indebtedness or obligation;

                  (c) to lease Property or to purchase Securities or other
         Property or services primarily for the purpose of assuring the owner of
         such indebtedness or obligation of the ability of the Primary Obligor
         to make payment of the indebtedness or obligation; or

                  (d) otherwise to assure the owner of the indebtedness or
         obligation of the Primary Obligor against loss in respect thereof.

For purposes of computing the amount of any Guaranty in connection with any
computation of indebtedness or other liability, it shall be assumed that the
indebtedness or other liabilities that are the subject of such Guaranty are
direct obligations of the issuer of such Guaranty. Without limiting the
generality of the foregoing, it is agreed and understood that each general
partner of a partnership shall be deemed to be a Guarantor of all indebtedness
and other obligations of such partnership and such partnership shall be deemed
to be the Primary Obligor in respect of such indebtedness and other obligations.
For purposes of the immediately preceding sentence, a Person shall be deemed to
be a general partner of any so-called "joint venture" or other arrangement
(whether or not constituting a partnership), and such joint venture or other
arrangement shall be deemed to be a partnership, if,

                                       39

<PAGE>   40

pursuant to applicable law, by contract or otherwise, such Person is liable,
directly or indirectly, contingently or otherwise, either individually or
jointly with one or more other Persons, for the indebtedness or other
obligations of such joint venture or other arrangement.

         HAZARDOUS SUBSTANCES -- means any and all pollutants, contaminants,
toxic or hazardous wastes and any other substances that might pose a hazard to
health or safety, the removal of which may be required or the generation,
manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage
or filtration of which is or shall be, in each of the foregoing cases,
restricted, prohibited or penalized by any applicable law.

         INSTALLMENT CONTRACTS -- means retail installment contracts for the
sale of new or used motor vehicles assigned outright by Dealers to the Company
or a Restricted Subsidiary or written by Dealers in the name of the Company or a
Restricted Subsidiary (and funded by the Company or such Restricted Subsidiary)
or assigned by Dealers to the Company or a Restricted Subsidiary, as nominee for
the Dealer, for administration, servicing and collection, in each case pursuant
to an applicable Dealer Agreement; provided, however, that to the extent the
Company or any Restricted Subsidiary transfers or encumbers its interest in any
Installment Contracts (or any Advances related thereto) pursuant to a Permitted
Securitization, such Installment Contracts shall, from and after the date of
such transfer or encumbrance, cease to be considered Installment Contracts under
this Agreement (reducing the amount of Advances by the outstanding amount of
such advances, if any, attributable to such Installment Contracts) unless and
until such installment contracts are reassigned to the Company or a Restricted
Subsidiary or such encumbrances are discharged.

         INSTITUTIONAL INVESTOR -- means the Purchasers, any affiliate of any of
the Purchasers and any holder or beneficial owner of Notes that is an
"accredited investor" as defined in section 2(15) of the Securities Act or a
"qualified institutional buyer" as defined in 17 C.F.R. ss.230.144A, as amended
from time to time.

         INTANGIBLE ASSETS -- means any assets of a Person that would be
classified as "intangible assets" under GAAP, including, without limitation,
goodwill, trademarks, trade names, patents, copyrights, franchises and other
intangible assets of such Person.

         INTERCREDITOR AGREEMENT -- means the Intercreditor Agreement, dated as
of December 15, 1998, by and among the Banks, the holders of Notes, the holders
of "Future Debt" (as defined in such agreement) and Comerica Bank, as collateral
agent, as such agreement may be amended from time to time.

         INVESTMENT -- means any investment, made in cash or by delivery of
Property, by the Company or any Restricted Subsidiary:

                  (a) in any Person, whether by acquisition of stock,
         indebtedness or other obligation or Security, or by loan, Guaranty,
         advance, capital contribution or otherwise; or

                                       40

<PAGE>   41

                  (b) in any Property.

Investments shall be valued at cost less any net return of capital through the
sale or liquidation thereof or other return of capital thereon. Any designation
of a Subsidiary as an Unrestricted Subsidiary pursuant to Section 6.17 shall be
deemed to be an Investment, in an amount equal to the net worth of such
Subsidiary, at the time of such designation and any Investments of a Person
existing at the time it shall become a Restricted Subsidiary shall be deemed to
have been made immediately after such time.

         INVESTMENT GRADE RATING -- means a rating of at least, but not lower
than:

                (i)      "Baa3" by Moody's Investors Service, Inc.,

                (ii)     "BBB-" by Standard & Poor's Ratings Group,

                (iii)    a category "1" or category "2" designation from the
                         National Association of Insurance Commissioners, and

                (iv)     "BBB-" by Fitch Investors Services, Inc.

         IRC -- means the Internal Revenue Code of 1986, together with all rules
and regulations promulgated pursuant thereto, as amended from time to time.

         IRS -- means the Internal Revenue Service and any successor agency.

         LEASED VEHICLES -- means, as of any applicable date of determination,
the dollar amount of advances in respect of Leases, as such amount would appear
in the footnotes to the financial statements of the Company and its Restricted
Subsidiaries prepared in accordance with GAAP or, if specifically identified,
elsewhere in such financial statements, net of depreciation on the motor
vehicles which are covered by Leases with respect to which such Leased Vehicles
are attributable (and if such amount is not shown net of such reserves, then net
of any reserves established by the Company as an allowance for credit losses
related to such advances not expected to be recovered), provided that Leased
Vehicles shall not include (a) the amount of any such advances attributable to
any Leases transferred or encumbered pursuant to a Permitted Securitization
(whether or not attributable to the Company under GAAP) unless and until such
advances (and the related Leases) are reassigned to the Company or a Restricted
Subsidiary or such encumbrances are discharged, or (b) Charged-Off Lease
Advances, to the extent that such Charged-Off Lease Advances (i) exceed the
portion of the allowance for credit losses related to reserves against such
advances not expected to be recovered, as such allowance would appear in the
footnotes to the financial statements of the Company and its Restricted
Subsidiaries prepared in accordance with GAAP at such time or if specifically
identified, elsewhere in such financial statements and (ii) have not already
been eliminated in the determination of Leased Vehicles.

                                       41
<PAGE>   42
         LEASE(S) -- means the retail agreements for the lease of motor vehicles
assigned outright by Dealers to the Company or a Restricted Subsidiary or
written by a Dealer in the name of the Company or a Restricted Subsidiary (and
funded by the Company or such Restricted Subsidiary) or assigned by Dealers to
the Company or a Restricted Subsidiary, as nominee for the Dealer, for
administration, servicing and collection, in each case pursuant to an applicable
Dealer Agreement; provided, however, that to the extent the Company or any
Restricted Subsidiary transfers or encumbers its interest in any Leases pursuant
to a Permitted Securitization, such Leases shall, from and after the date of
such transfer or encumbrance, cease to be considered Leases under this Agreement
(reducing the amount of Leased Vehicles by the outstanding amount of Leased
Vehicles attributable to such Leases) unless and until such Leases are
reassigned to the Company or a Restricted Subsidiary or such encumbrances have
been discharged.

         LETTER OF CREDIT FACILITY -- means a letter of credit issued by a
commercial bank for the account of the Company or a Restricted Subsidiary,
solely in support of the Company's or such Restricted Subsidiary's obligations
in respect of commercial paper issued by the Company or such Restricted
Subsidiary.

         LIEN -- means any interest in Property securing an obligation owed to,
or a claim by, a Person other than the owner of the Property, whether such
interest is based on the common law, statute or contract, and including, but not
limited to, the security interest lien arising from a mortgage, encumbrance,
pledge, conditional sale, sale with recourse or a trust receipt, or a lease,
consignment or bailment for security purposes. The term "Lien" includes, without
limitation, reservations, exceptions, encroachments, easements, rights-of-way,
covenants, conditions, restrictions, leases and other title exceptions and
encumbrances affecting real Property and includes, without limitation, with
respect to stock, stockholder agreements, voting trust agreements, buy-back
agreements and all similar arrangements. For the purposes hereof, the Company
and each Subsidiary shall be deemed to be the owner of any Property that it
shall have acquired or holds subject to a conditional sale agreement, Capital
Lease or other arrangement pursuant to which title to the Property has been
retained by or vested in some other Person for security purposes, and such
retention or vesting is deemed a Lien. The term "Lien" does not include negative
pledge clauses in agreements relating to the borrowing of money or the
obligation of the Company (a) to remit monies held by it in connection with
dealer holdbacks (including, without limitation, with respect to Leases or
Installment Contracts), claims or refunds under insurance policies, or claims or
refunds under service contracts or (b) to make deposits in trust or otherwise as
required under reinsurance agreements or pursuant to state regulatory
requirements, unless the Company has encumbered its interest in such monies or
deposits or in other Property of the Company to secure such obligations. The
term "Lien" also does not include the rights of the "Agent" (as defined in the
Credit Agreement) and the Banks to money, consisting either of net proceeds of
any "Permitted Securitization" (as defined in the Credit Agreement) or net
proceeds from the issuance of "Future Debt" (as defined in the Credit Agreement)
deposited by the Company or any Restricted Subsidiary in a cash collateral
account, in lieu of the Company's reduction of indebtedness outstanding under
the Credit Agreement, for the purpose of avoiding breakage charges in connection
with "Eurocurrency-based Advances" (as defined in the

                                       42
<PAGE>   43

Credit Agreement) under the Credit Agreement, all in accordance with clause (d)
of the definition of "Permitted Securitization" and clause (d) of the definition
of "Funding Conditions" in the Credit Agreement, as applicable; it being also
understood and agreed that the holders of Notes shall have no rights to a
security interest in or Lien on the money so deposited.

         MAKE-WHOLE AMOUNT -- means, with respect to any date (a "Prepayment
Date") and any principal amount ("Prepaid Principal") of Notes required for any
reason to be paid prior to the regularly scheduled maturity thereof on such
Prepayment Date, the greater of

                  (a)    Zero Dollars ($0), and

                  (b)    (i) the sum of the present values of the then remaining
                  scheduled payments of principal and interest that would be
                  payable in respect of such Prepaid Principal but for such
                  prepayment or acceleration, minus

                         (ii) the sum of

                              (1)       the amount of such Prepaid Principal,
                                   plus

                              (2)       the amount of  interest  accrued on such
                                   Prepaid  Principal  since the scheduled
                                   interest payment date immediately  preceding
                                   such Prepayment Date.

In determining such present values, a discount rate equal to the Make-Whole
Discount Rate with respect to such Prepayment Date and Prepaid Principal divided
by two (2), and a discount period of six (6) months of thirty (30) days each,
shall be used.

As used in this definition:

                  Make-Whole Discount Rate -- means, with respect to any
         Prepayment Date and Prepaid Principal, the sum of

                         (a) the per annum percentage rate (rounded to the
                  nearest three (3) decimal places) equal to the bond equivalent
                  yield to maturity derived from the Bloomberg Rate with respect
                  to such Prepaid Principal, or if such Bloomberg Rate is not
                  then available, the Applicable H.15 Rate, in either case,
                  determined as of the date that is two (2) Business Days prior
                  to such Payment Date, plus

                         (b) fifty one-hundredths percent (0.50%) per annum.

         For purposes of clause (a) of the preceding sentence, if no United
         States Treasury obligation with a Treasury Constant Maturity
         corresponding exactly to the Weighted Average Life to Maturity of such
         Prepaid Principal is listed, the yields for the two (2) published
         United States

                                       43
<PAGE>   44

         Treasury obligations with Treasury Constant Maturities most closely
         corresponding to such Weighted Average Life to Maturity (one (1) with a
         longer maturity and one (1) with a shorter maturity, if available)
         shall be calculated pursuant to the immediately preceding sentence and
         the Make-Whole Discount Rate shall be interpolated or extrapolated from
         such yields on a straight-line basis.

                  Applicable H.15 -- means, at any time, United States Federal
         Reserve Statistical Release H.15(519) or its successor publication then
         most recently published and available to the public or, if no such
         successor publication is available, then any other source of current
         information in respect of interest rates on securities of the United
         States of America that is generally available and, in the judgment of
         the Required Holders, provides information reasonably comparable to the
         H.15(519) report.

                  Applicable H.15 Rate -- means, at any time with respect to any
         Prepaid Principal, the then most current annual yield to maturity of
         the hypothetical United States Treasury obligation listed in the
         Applicable H.15 for the then most recently available day in such
         Applicable H.15 with a Treasury Constant Maturity (as defined in such
         Applicable H.15) equal to the Weighted Average Life to Maturity of such
         Prepaid Principal determined as of such Prepayment Date. If no such
         United States Treasury obligation with a Treasury Constant Maturity
         corresponding exactly to such Weighted Average Life to Maturity is
         listed, then the yields for the two (2) published United States
         Treasury obligations with Treasury Constant Maturities most closely
         corresponding to such Weighted Average Life to Maturity (one (1) with a
         longer maturity and one (1) with a shorter maturity, if available)
         shall be calculated pursuant to the immediately preceding sentence and
         the Make-Whole Discount Rate shall be interpolated or extrapolated from
         such yields on a straight-line basis.

                  Bloomberg Rate -- means, on any date, with respect to any
         Prepaid Principal, the yields reported, as of 10:00 A.M. (New York City
         time) on such date with respect to such Prepaid Principal, on the
         display designated as "USD" on the Bloomberg Financial Market Service
         (or such other display as may replace Page USD on the Bloomberg
         Financial Market Service) for actively traded U.S. Treasury securities
         having a maturity equal to the Weighted Average Life to Maturity of
         such Prepaid Principal as of such date. If no such U.S. Treasury
         security with a maturity corresponding exactly to the Weighted Average
         Life to Maturity of such Prepaid Principal is reported, then the yields
         for the two (2) U.S. Treasury securities with maturities most closely
         corresponding to the Weighted Average Life to Maturity of such Prepaid
         Principal (one (1) with a longer maturity and one (1) with a shorter
         maturity, if available) shall be calculated pursuant to the immediately
         preceding sentence and the Make-Whole Discount Rate shall be
         interpolated or extrapolated from such yields on a straight-line basis.

                  Weighted Average Life to Maturity -- means, with respect to
         any Prepayment Date and Prepaid Principal, the number of years obtained
         by dividing the Remaining Dollar-Years of such Prepaid Principal
         determined on such Prepayment Date by such Prepaid Principal.

                                       44
<PAGE>   45

                  Remaining Dollar-Years -- means, with respect to any
         Prepayment Date and Prepaid Principal, the result obtained by

                           (a) multiplying, in the case of each required payment
                  of principal (including payment at maturity) that would be
                  payable in respect of such Prepaid Principal but for such
                  prepayment,

                               (i) an amount equal to such required payment of
                           principal, by

                               (ii) the number of years (calculated to the
                           nearest one-twelfth (1/12)) that will elapse between
                           such Prepayment Date and the date such required
                           principal payment would be due if such Prepaid
                           Principal had not been so prepaid, and

                           (b) calculating the sum of each of the products
                  obtained in the preceding subsection (a).

         MANDATORY PRINCIPAL AMORTIZATION PAYMENT -- Section 4.1.

         MARGIN SECURITY -- means "margin stock" within the meaning of
Regulations G, T, U and X of the Board of Governors of the Federal Reserve
System, 12 C.F.R., Chapter II, as amended from time to time.

         MATERIAL ADVERSE EFFECT -- means a material adverse effect on the
business, profits, Properties or financial condition of the Company and the
Restricted Subsidiaries, taken as a whole, or on the ability of the Company to
perform its obligations set forth herein and in the Notes.

         MONTANA DISPOSITION -- means the sale of Montana Investment Group, Inc.
and/or any of its subsidiaries for net proceeds totaling at least $16,000,000 in
cash (all of which net proceeds are used to reduce Debt outstanding under the
Credit Agreement), pursuant to (i) the sale of all or substantially all of the
assets of Montana Investment Group, Inc. and/or any of its subsidiaries, (ii)
the sale of all of the capital stock of Montana Investment Group, Inc. or (iii)
the merger of Montana Investment Group, Inc. with and into any Person other than
the Company or a Restricted Subsidiary; in each case, immediately prior to and
immediately after the consummation of which, and after giving effect thereto, no
Default or Event of Default would exist.

         MULTIEMPLOYER PLAN -- means any "multiemployer plan" (as defined in
section 3 of ERISA) in respect of which the Company or any ERISA Affiliate is an
"employer" (as defined in section 3 of ERISA).

         MULTIPLE EMPLOYER PENSION PLAN -- means any "employee benefit plan"
within the meaning of section 3(3) of ERISA (other than a Multiemployer Plan),
subject to Title IV of ERISA,

                                       45
<PAGE>   46

constituting a "single-employer plan" (as defined in section 4001 of ERISA)
which has two (2) or more "contributing sponsors" (as defined in section 4001 of
ERISA), at least two (2) of which are not under "common control" (as defined in
section 4001 of ERISA) and to which the Company or any ERISA Affiliate
contribute.

         NET DEALER HOLDBACKS -- means, at any time, (a) Gross Dealer Holdbacks
minus (b) Advances at such time.

         NET INSTALLMENT CONTRACT RECEIVABLES -- means, at any time, the amount
computed as the result of (a) Gross Installment Contract Receivables minus (b)
Unearned Finance Charges minus (c) Allowances for Credit Losses relating to
Installment Contracts (but excluding any such allowances which are related to
Leases), at such time.

         NET LEASED VEHICLE DEALER HOLDBACKS -- means, at any time, with respect
to Dealer Agreements relating to Leases, amounts due to Dealers at such time
from collections of Leased Vehicles by the Company or any Restricted Subsidiary
(other than with respect to Leases which have been transferred or encumbered
pursuant to a Permitted Securitization and (x) have not been reassigned to the
Company or a Restricted Subsidiary or (y) with respect to which such
encumbrances have not been discharged) pursuant to the applicable Dealer
Agreements.

         NON-RECOURSE DEBT -- means Debt of a partnership, joint venture or
similar entity in which the Company or a Restricted Subsidiary is a participant,
so long as the holder or holders of such Debt shall have no rights or recourse
against any Property of the Company or any Restricted Subsidiary, other than
Property used solely in connection with such partnership, joint venture or
similar entity.

         NOTE PURCHASE AGREEMENTS -- Section 1.2(c).

         NOTES -- Section 1.1.

         OPERATING LEASE -- means, with respect to any Person, any lease other
than a Capital Lease.

         OPERATING RENTALS -- means all fixed payments that the lessee is
required to make by the terms of any Operating Lease.

         ORIGINAL NOTES -- Section 1.1(a).

         OSHA -- means the Occupational Safety and Health Act of 1970, together
with all rules, regulations and standards promulgated pursuant thereto, all as
amended from time to time.

         OTHER PURCHASERS -- Section 1.2(c).

         OUTRIGHT DEALER AGREEMENT(S) -- means Dealer Agreements referred to in
clause (b) of the definition of Dealer Agreements.

                                       46
<PAGE>   47

         PBGC -- means the Pension Benefit Guaranty Corporation and any
successor corporation or governmental agency.

         PENSION PLAN -- means, at any time, any "employee pension benefit plan"
(as defined in section 3 of ERISA) maintained at such time by the Company or any
ERISA Affiliate for employees of the Company or such ERISA Affiliate, excluding
any Multiemployer Plan, but including any Multiple Employer Pension Plan.

         PERMITTED SECURITIZATION(S) -- means each transfer or encumbrance (each
a "disposition") of specific Advances or Leased Vehicles funded under Back-End
Dealer Agreements (and any interest in or lien on the Installment Contracts,
Leases, motor vehicles or other rights relating thereto) or of specific
Installment Contracts or Leases (and any interest in or lien on motor vehicles
or other rights relating thereto) arising under Outright Dealer Agreements, in
each case by the Company or one or more Restricted Subsidiaries to a Special
Purpose Subsidiary conducted in accordance with the following requirements:

                  (a)      Each disposition shall identify with reasonable
                           certainty the specific Advances, Leased Vehicles,
                           Installment Contracts or Leases covered by such
                           disposition; and such Advances or Leased Vehicles
                           (and the Installment Contracts, Leases, motor
                           vehicles or other rights relating thereto) and the
                           Installment Contracts and Leases shall have
                           performance and other characteristics so that the
                           quality of such Advances, Leased Vehicles,
                           Installment Contracts or Leases, as the case may be,
                           is comparable to, but not materially better than, the
                           overall quality of the Company's Advances, Leased
                           Vehicles, Installment Contracts or Leases, as
                           applicable, as a whole, as determined in good faith
                           by the Company in its reasonable discretion;

                  (b)      (i) The disposition of Advances, Leased Vehicles,
                           Installment Contracts or Leases will not result in
                           the aggregate principal amount of Debt at any time
                           outstanding, and (without duplication) of similar
                           securities at any time issued and outstanding (other
                           than subordinated securities issued to and held by
                           the Company or a Subsidiary), of any Special Purpose
                           Subsidiary pursuant to Permitted Securitizations
                           exceeding $100,000,000, which amount may be
                           readvanced and reborrowed and (ii) the Company or the
                           Restricted Subsidiary disposing of Advances, Leased
                           Vehicles, Installment Contracts or Leases to a
                           Special Purpose Subsidiary pursuant to such Permitted
                           Securitization shall itself actually receive
                           (substantially contemporaneously with such
                           disposition) cash from each disposition of such
                           financial assets in connection with any such
                           Securitization Transaction in an amount not less than
                           Seventy-Five Percent (75%) of the sum of (A) the
                           amount of such Advances, (B) the amount of Net
                           Installment Contract Receivables in respect of
                           Installment Contracts arising under Outright Dealer
                           Agreements, and (C)

                                       47
<PAGE>   48

                           the amount of Leased Vehicles, in each case
                           determined on the date of such Securitization
                           Transaction;

                  (c)      Each such disposition shall be without recourse
                           (except to the extent of normal and customary
                           representations and warranties given as of the date
                           of each such disposition, and not as continuing
                           representations and warranties) and otherwise on
                           normal and customary terms and conditions for
                           comparable asset-based securitization transactions
                           which may include, without limitation, Cleanup Call
                           provisions;

                  (d)      Each such Securitization Transaction shall be
                           structured on the basis of the issuance of
                           non-recourse Debt or other similar securities by the
                           Special Purpose Subsidiary; and

                  (e)      Both immediately before and after giving effect to
                           such disposition, no Default or Event of Default
                           (whether or not related to such disposition) exists
                           or would exist.

                  In connection with each Permitted Securitization conducted
                  hereunder, not less than ten (10) Business Days prior to the
                  date of consummation thereof, the Company shall provide to
                  each holder of a Note (i) a schedule in the form attached
                  hereto as Exhibit E identifying the specific Installment
                  Contracts or Leases or the Advances or Leased Vehicles (and
                  providing collection information regarding the related
                  Installment Contracts or Leases) proposed to be covered by
                  such transaction (with evidence supporting its determination
                  under subparagraph (a) of this definition, including without
                  limitation a "static pool analysis" comparable to the static
                  pool analysis required to be delivered under Section 7.1(j)(1)
                  hereof with respect to such Installment Contracts or Leases)
                  and (ii) proposed drafts of the material Securitization
                  Documents covering the applicable securitization (and the term
                  sheet or commitment relating thereto). Within five (5)
                  Business Days following the consummation thereof, the Company
                  shall have provided to each holder of Notes copies of the
                  material Securitization Documents, as executed, including an
                  updated schedule, substantially in the form of the schedule
                  delivered under clause (i) above, identifying the financial
                  assets actually covered by such transaction (and, if such
                  financial assets are materially different, as reasonably
                  determined by the Company, from those shown in the schedule
                  delivered under clause (i) above, collection information and
                  evidence supporting its determination under subparagraph (a)
                  of this definition, including a comparable "static pool
                  analysis," as aforesaid, with respect to such financial
                  assets).

         PERSON -- means an individual, sole proprietorship, partnership,
corporation, limited liability company, trust, joint venture, unincorporated
organization, or a government or agency or political subdivision thereof.

                                       48
<PAGE>   49

         PLACEMENT AGENT -- means William Blair & Company, L.L.C.

         PLACEMENT MEMORANDUM -- Section 2.1.

         PROPERTY -- means any interest in any kind of property or asset,
whether real, personal or mixed, and whether tangible or intangible.

         PURCHASE MONEY LIEN -- means a Lien held by any Person (whether or not
the seller of such Property) on tangible Property (or a group of related items
of Property the substantial portion of which is tangible) acquired or
constructed by the Company or any Restricted Subsidiary, which Lien secures all
or a portion of the related purchase price or construction costs of such
Property, provided that such Lien

                  (a) is created contemporaneously with, or within thirty (30)
         days of, such acquisition or construction,

                  (b) encumbers only Property purchased or constructed after the
         Closing Date and acquired with the proceeds of the Debt secured
         thereby, and

                  (c) is not thereafter extended to any other Property.

         PURCHASERS -- means you and the Other Purchasers.

         REQUIRED HOLDERS -- means, at any time, the holders of at least
sixty-six and two-thirds percent (66-_%) in principal amount of the Notes at the
time outstanding (exclusive of Notes then owned by any one or more of the
Company, any Restricted Subsidiary and any Affiliate).

         RESTRICTED INVESTMENT -- means, at any time, all Investments except the
following:

                  (a) Investments in Property to be used in the ordinary course
         of business of the Company and the Restricted Subsidiaries;

                  (b) subject to clause (k) of this definition, Investments in
         receivables, advances, Leases and Leased Vehicles arising from the sale
         or lease of goods and services, in each case in the ordinary course of
         business of the Company and the Restricted Subsidiaries;

                  (c) Investments by the Company or any Restricted Subsidiary in
         the ordinary course of its business in one or more Restricted
         Subsidiaries or any corporation that concurrently with such Investment
         becomes a Restricted Subsidiary, provided that the aggregate amount of
         all Investments made pursuant to this paragraph (c) and paragraph (d)
         of this definition (excluding Guaranties by the Company of Debt of
         Restricted Subsidiaries) does not at any time exceed twenty-five
         percent (25%) of Consolidated Tangible Net Worth

                                       49
<PAGE>   50

         (it being understood that loans and advances to any Restricted
         Subsidiary by any Person other than the Company or any other Restricted
         Subsidiary, regardless of whether such loans and advances are
         guaranteed by the Company or any other Restricted Subsidiary, shall not
         be taken into account in determining the aggregate amount of
         Investments made pursuant to this paragraph (c) and paragraph (d) of
         this definition);

                  (d) Investments consisting of loans by the Company or any
         Restricted Subsidiary, and advances from the Company or any Restricted
         Subsidiary, in each case to the Company or any Restricted Subsidiary in
         the ordinary course of business of the Company and the Restricted
         Subsidiaries, provided that the aggregate amount of all Investments
         made pursuant to paragraph (c) of this definition and this paragraph
         (d) (excluding Guarantees by the Company of Debt of Restricted
         Subsidiaries) does not at any time exceed twenty-five percent (25%) of
         Consolidated Tangible Net Worth (it being understood that loans and
         advances to any Restricted Subsidiary by any Person other than the
         Company or any other Restricted Subsidiary, regardless of whether such
         loans and advances are guaranteed by the Company or any other
         Restricted Subsidiary, shall not be taken into account in determining
         the aggregate amount of Investments made pursuant to this paragraph (d)
         and paragraph (c) of this definition);

                  (e) Investments in direct obligations of, or obligations
         guarantied by, the United States of America or any agency of the United
         States of America the obligations of which agency carry the full faith
         and credit of the United States of America, provided that such
         obligations (other than Investments by CAC Life in such obligations
         made to match liabilities incurred in the ordinary course of business)
         mature within one (1) year from the date of acquisition thereof;

                  (f) Investments in any obligation of any state or municipality
         thereof that at the time of acquisition thereof have an assigned rating
         of "A" or higher by Standard & Poor's Ratings Group (or an equivalent
         or higher rating by another credit rating agency of recognized national
         standing in the United States of America), provided that such
         obligations (other than Investments by CAC Life in such obligations
         made to match liabilities incurred in the ordinary course of business)
         mature within one (1) year from the date of acquisition thereof;

                  (g) Investments in negotiable certificates of deposit issued
         by commercial banks organized under the laws of the United States of
         America or any state thereof, having capital, surplus and undivided
         profits aggregating at least Fifty Million Dollars ($50,000,000) and
         the long-term unsecured debt obligations of which are rated "A" or
         higher by Standard & Poor's Ratings Group (or an equivalent or higher
         rating by another credit rating agency of recognized national standing
         in the United States of America), provided that such certificates of
         deposit (other than Investments by CAC Life in such certificates of
         deposit made to match liabilities incurred in the ordinary course of
         business) mature within one (1) year from the date of acquisition
         thereof;

                                       50
<PAGE>   51

                  (h) Investments in corporate debt obligations of corporations
         organized under the laws of the United States of America or any state
         thereof that at the time of acquisition thereof have an assigned rating
         of "A" or higher by Standard & Poor's Ratings Group (or an equivalent
         or higher rating by another credit rating agency of recognized national
         standing in the United States of America);

                  (i) Investments in preferred stock of corporations organized
         under the laws of the United States of America or any state thereof
         that have an assigned rating of "A" or higher by Standard & Poor's
         Ratings Group (or an equivalent or higher rating by another credit
         rating agency of recognized national standing in the United States of
         America);

                  (j) Investments in loans or advances, in the ordinary course
         of business and necessary to carrying on the business of the Company or
         any Restricted Subsidiary, to officers, directors and employees of the
         Company and the Restricted Subsidiaries, provided that the aggregate
         amount of all such Investments does not at any time exceed One Million
         Dollars ($1,000,000);

                  (k) Investments in receivables arising from floor plan
         receivables and note receivables due from dealers in the ordinary
         course of business of the Company and the Restricted Subsidiaries,
         provided that the aggregate amount of all such Investments does not at
         any time exceed ten percent (10%) of Consolidated Total Assets;

                  (l) Investments by the Company or any Restricted Subsidiary in
         the Company, any Restricted Subsidiary or any Special Purpose
         Subsidiary from and after the effective date of the Second Amendment,
         consisting of (i) dispositions of specific Advances, Leased Vehicles,
         Installment Contracts (whether assigned outright or related to
         Advances) or Leases (whether assigned outright or related to Leased
         Vehicles) made pursuant to a Permitted Securitization and the resultant
         Debt issued by a Special Purpose Subsidiary to another Subsidiary as
         part of a Permitted Securitization, in each case to the extent
         constituting Investments, (ii) advances by the Company, as servicer of
         the Installment Contracts or Leases covered by a Permitted
         Securitization, in an aggregate amount not to exceed $1,500,000
         outstanding at any time, to cover the interest component of obligations
         issued as part of a Permitted Securitization and payable from
         collections on such Installment Contracts (such advances to be
         repayable to the Company on a priority basis from such collections),
         (iii) the repurchase or replacement from and after the date of the
         effectiveness of the Second Amendment of an aggregate amount not to
         exceed $5,000,000 in Advances, Leased Vehicles, Installment Contracts
         (whether assigned outright or related to Advances) or Leases (whether
         assigned outright or related to Leased Vehicles) subsequently
         determined not to satisfy the eligibility standards contained in the
         applicable Securitization Documents relating to a Permitted
         Securitization, so long as (x) such replacement is accompanied by the
         repurchase of or release of encumbrances on such financial assets
         previously transferred or encumbered pursuant to such securitization
         and in the amount thereof, (y) any replacement

                                       51
<PAGE>   52

         Advances, Leased Vehicles, Installment Contracts (whether assigned
         outright or related to Advances) or Leases (whether assigned outright
         or related to Leased Vehicles) are selected by the Company according to
         the requirements set forth in clause (a) of the definition of Permitted
         Securitization and (z) such replacements are made at a time when (both
         before and after giving effect thereto) no Default or Event of Default
         exists or would exist, (iv) amounts required to fund any Cleanup Call
         under the terms of such Permitted Securitization, and (v) the
         disposition of the capital stock of a Special Purpose Subsidiary; and

                  (m) Investments not otherwise included in clause (a) through
         clause (l) of this definition, provided that the aggregate amount of
         all such Investments does not at any time exceed Two Million Five
         Hundred Thousand Dollars ($2,500,000).

         RESTRICTED PAYMENT -- means (x) any dividend or other distribution,
direct or indirect and whether payable in cash or property, on account of any
capital stock or other equity interest of the Company or any of its Restricted
Subsidiaries and (y) any redemption, retirement, purchase, or other acquisition,
direct or indirect, of any capital stock or other equity interests of the
Company or any of its Restricted Subsidiaries now or hereafter outstanding, or
of any warrants, rights or options to acquire any such capital stock or other
equity interests or any securities convertible into such capital stock or other
equity interests, except to the extent that any such dividend or distribution,
or any such redemption, retirement, purchase or other acquisition (i) is payable
to the Company or any of its Restricted Subsidiaries or (ii) is payable solely
in capital stock or other equity interests of the Company or any such Restricted
Subsidiary.

         RESTRICTED SUBSIDIARY -- means any Subsidiary (a) in respect of which
the Company owns, directly or indirectly, (i) at least eighty percent (80%) (by
number of votes) of each class of such Subsidiary's Voting Stock, or (ii) in the
case of CAC Insurance Agency of Ohio, Inc., at least 99% of the shares of
capital stock issued and outstanding of all classes in the aggregate, (b) that
is organized under the laws of the United States of America or any jurisdiction
thereof, the United Kingdom or any jurisdiction thereof (including, without
limitation, England, Scotland and Wales), Canada or any jurisdiction thereof or
the Republic of Ireland or any jurisdiction thereof, and that conducts all of
its business in, and has all of its Property located in, the United States of
America, the United Kingdom, Canada and/or the Republic of Ireland and (c) that
is not an Unrestricted Subsidiary. Any Restricted Subsidiary in compliance with
the requirements set forth in the first sentence of this definition and
designated as a Restricted Subsidiary on the Closing Date shall be deemed to
have been a Restricted Subsidiary for all periods prior to the Closing Date.
Notwithstanding any provision in Section 6.17 to the contrary, CAC International
and CAC UK shall be deemed Restricted Subsidiaries as of October 1, 1995 and CAC
of Canada Limited and any Subsidiary formed by the Company to provide property
and casualty insurance shall each be deemed a Restricted Subsidiary as of the
date of its formation.

         RESTRICTED SUBSIDIARY STOCK -- Section 6.8(b).

                                       52
<PAGE>   53

         SALE AND LEASEBACK TRANSACTION -- means any transaction or series of
related transactions in which the Company or a Restricted Subsidiary sells or
transfers any of its Property to any Person (other than to the Company or to a
Restricted Subsidiary) and concurrently with such sale or transfer, or
thereafter, rents or leases such transferred Property or substantially similar
Property from any Person.

         SECOND AMENDMENT -- means the Second Amendment, dated as of July 1,
1998, to this Agreement.

         SECURITIES ACT -- means the Securities Act of 1933, as amended.

         SECURITIZATION DOCUMENTS -- means any note purchase agreement (and any
notes issued thereunder), transfer or security documents, master trust or other
trust agreements, servicing agreement, indenture, pooling agreement,
contribution or sale agreement or other documents, instruments and certificates
executed and delivered, subject to the terms of this Agreement, to evidence or
secure (or otherwise relating to) a Permitted Securitization, as the same may be
amended from time to time (subject to the terms hereof) and any and all other
documents executed in connection therewith or replacement or renewal thereof.

         SECURITIZATION PROPERTY -- means (i) amounts advanced by the Company or
a Restricted Subsidiary under a Dealer Agreement and payable from collections,
including servicing charges, insurance charges and service policies and all
related finance charges, late charges, and all other fees and charges charged to
customers and all monies due or to become due, and all monies received, with
respect thereto ("Loans"); (ii) all proceeds (including "proceeds" as defined in
the Uniform Commercial Code) thereof; (iii) all of the Company's or a Restricted
Subsidiary's interest in the Dealer Agreements and Installment Contracts
securing payment of Loans, all security interests or liens purporting to secure
payment of Loans and all other property obtained upon foreclosure of any
security interest securing payment of Loans or any related Installment Contract
and all guarantees, insurance (including insurance insuring the priority or
perfection of any lien) or other agreements or arrangements of any kind from
time to time supporting or securing payment of such Installment Contract whether
pursuant to such Installment Contract or otherwise; (iv) all records with
respect to Loans, (v) the Company's or a Restricted Subsidiary's right, title
and interest in and to business interruption insurance, and (vi) all payments
received by the Company in respect of Transferred Loans in the form of cash,
checks, wire transfers or other form of payment.

         SECURITIZATION TRANSACTION -- means a Transfer of, or grant of a Lien
on, Advances, Installment Contracts, Leased Vehicles, Leases, accounts
receivable and/or other financial assets by the Company or any Restricted
Subsidiary to a Special Purpose Subsidiary or other special purpose or limited
purpose entity and the issuance (whether by such Special Purpose Subsidiary or
other special purpose or limited purpose entity or any other Person) of Debt or
of any Securities secured directly or indirectly by interests in, or of trust
certificates or other Securities directly or indirectly evidencing interests in,
such Advances, Installment Contracts, Leased Vehicles, Leases, accounts
receivable and/or other financial assets.

                                       53
<PAGE>   54

         SECURITY -- means "security" as defined in section 2(1) of the
Securities Act.

         SENIOR FINANCIAL OFFICER -- means the chief financial officer, the
principal accounting officer, the controller or the treasurer of the Company.

         SENIOR OFFICER -- means the chief executive officer, the president or
the chief financial officer of the Company.

         SPECIAL PURPOSE SUBSIDIARY -- means any Unrestricted Subsidiary of the
Company, all of the capital stock of which is owned by the Company or a
Restricted Subsidiary, which Unrestricted Subsidiary is formed for the sole
purpose of conducting one or more Permitted Securitizations and is operated for
such purpose in accordance with customary industry practices.

         STANDARD & POOR'S RATINGS GROUP -- means Standard & Poor's Ratings
Group, a division of McGraw-Hill, Inc.

         SUBORDINATED DEBT -- means, at any time, unsecured Debt of the Company
that is junior and subordinate in right of payment to the Notes on terms and
conditions satisfactory to the Required Holders, as evidenced by their written
consent.

         SUBORDINATED FUNDED DEBT -- means, at any time, Funded Debt of the
Company or any Restricted Subsidiary that is:

                  (a) junior and subordinate in right of payment to the Notes on
         terms and conditions satisfactory to the Required Holders, as evidenced
         by their written consent thereto,

                  (b) not subject to any sinking fund or required prepayment
         provisions that would result in its having at any time an average life
         to maturity, computed in accordance with accepted financial practice,
         shorter than the Weighted Average Life to Maturity (as defined in the
         definition of "Make-Whole Amount") of the Notes at such time or a final
         maturity earlier than the stated final maturity of the Notes, and

                  (c) not secured by a Lien on the Property of the Company or
         any Restricted Subsidiary (whether or not such Funded Debt is recourse
         to the Company or any Restricted Subsidiary).

         SUBSIDIARY -- means, at any time, a corporation of which the Company
owns, directly or indirectly, more than fifty percent (50%) (by number of votes)
of each class of the Voting Stock at such time.

         SURVIVING CORPORATION -- Section 6.7(a).

                                       54
<PAGE>   55

         TOTAL RESTRICTED SUBSIDIARY DEBT -- means, at any time, the aggregate
amount of Debt of all Restricted Subsidiaries determined at such time after
eliminating intercompany transactions among the Company and the Restricted
Subsidiaries. For the avoidance of doubt, the Company hereby acknowledges that
Total Restricted Subsidiary Debt includes the amount of Debt of any Restricted
Subsidiary attributable to its Guaranty of any liabilities of another Person
(including the Company or any Subsidiary) made in favor of any Person other than
the Company or another Restricted Subsidiary. Notwithstanding the foregoing, (i)
Total Restricted Subsidiary Debt does not include the amount of Debt of any
Restricted Subsidiary attributable to its Guaranty of obligations under the
Credit Agreement (and any related notes, letters of credit and other agreements)
of any Person (including the Company or any Subsidiary) made in favor of the
Banks if, concurrently with the giving of any such Guaranty, the holders of the
Notes at such time are given the benefit of an equal and ratable Guaranty on
substantially similar terms; and (ii) the term "Total Restricted Subsidiary
Debt" shall not, at any time prior to May 15, 1997 (but shall, at all times from
and after May 15, 1997), be deemed to include any Debt of CAC International
attributable to its Guaranty, for the benefit of the Banks, of the liabilities
of the Company and certain Subsidiaries under the Credit Agreement.

         TRANSFERS -- Section 6.8(a).

         UNEARNED FINANCE CHARGES -- means, as of any applicable date of
determination, the unearned finance charges utilized in deriving installment
contract receivables, net on the consolidated balance sheet of the Company and
its Restricted Subsidiaries, as disclosed in the footnotes thereto, provided
that Unearned Finance Charges shall not include unearned finance charges
attributable to retail installment contracts which are not at such time
"Installment Contracts" due to the proviso in the definition of such term in
this Agreement.

         UNRESTRICTED SUBSIDIARY -- means any Subsidiary that, as of the date of
this Agreement, is designated in Part 6.17(a) of Annex 3 as an Unrestricted
Subsidiary or, after the date of this Agreement, has been designated as an
Unrestricted Subsidiary as provided in Section 6.17.

         VOTING STOCK -- means capital stock of any class or classes of a
corporation the holders of which are ordinarily, in the absence of
contingencies, entitled to elect corporate directors (or Persons performing
similar functions).

         WHOLLY-OWNED RESTRICTED SUBSIDIARY -- means, at any time, any
Restricted Subsidiary one hundred percent (100%) of all of the equity Securities
(except directors' qualifying shares) and voting Securities of which are owned
by, and all of the Debt of which is held by, any one or more of the Company and
the other Wholly-Owned Restricted Subsidiaries at such time."

         2.5   AMENDMENT AND RESTATEMENT OF EXHIBIT A. The form of First Amended
and Restated Note set forth as Exhibit A to the Agreement is hereby amended and
restated, in its entirety, to be in the form of Attachment 4 attached to this
Fourth Amendment. All references to "Exhibit A" in the Note Purchase Agreements
shall, if in reference to a date on or after the date of the Fourth

                                       55
<PAGE>   56

Amendment, refer to the form of Second Amended and Restated 8.99% (or 9.49%, if
on or after January 15, 2000) Senior Note Due July 1, 2001, as amended and
restated hereby.

         2.6   AMENDMENT OF FIRST AMENDED AND RESTATED NOTES. The forms of the
respective First Amended and Restated Notes are hereby amended in their entirety
to conform to the form of Second Amended and Restated Note attached to this
Fourth Amendment as Attachment 4. On the date of this Fourth Amendment, each of
the terms of each outstanding First Amended and Restated Note shall be deemed to
be amended to conform with such form, without any further action on the part of
the Company or any holder of any First Amended and Restated Note (including,
without limitation, any requirement that any holder surrender its outstanding
First Amended and Restated Notes to the Company). Upon surrender of any
outstanding First Amended and Restated Note, the Company shall deliver to the
registered holder thereof a Second Amended and Restated Note in the form
attached hereto as Attachment 4, dated the date of the last interest payment on
such surrendered First Amended and Restated Note and in an aggregate principal
amount equal to the unpaid principal amount of such surrendered First Amended
and Restated Note, all in accordance with the provisions of Section 5.2 of the
Agreement. Without limitation of the foregoing, the amendment and restatement of
the First Amended and Restated Notes provided for herein, including, without
limitation, the increase in the interest rate applicable to the Notes, shall be
effective with respect to any and all of the Notes irrespective of whether any
such Notes are surrendered to the Company for reissuance in the form attached to
this Fourth Amendment as Attachment 4.

SECTION 3.     MISCELLANEOUS

         3.1   COUNTERPARTS. This Fourth Amendment may be executed in any number
of counterparts, each executed counterpart constituting an original, but all
together only one Fourth Amendment.

         3.2   HEADINGS. The headings of the sections of this Fourth Amendment
are for purposes of convenience only and shall not be construed to affect the
meaning or construction of any of the provisions hereof.

         3.3   GOVERNING LAW. This Fourth Amendment shall be governed by and
construed in accordance with the internal laws of the State of Connecticut.

         3.4   EFFECT OF AMENDMENT. Except as expressly provided herein (a) no
other terms and provisions of the Agreement shall be modified or changed by this
Fourth Amendment and (b) the terms and provisions of the Agreement, as amended
by this Fourth Amendment, shall continue in full force and effect. The Company
hereby acknowledges and reaffirms all of its obligations and duties under the
Agreement, as modified by this Fourth Amendment, and the Notes.

         3.5   REFERENCES TO THE AGREEMENT. Any and all notices, requests,
certificates and other instruments executed and delivered concurrently with or
after the execution of the Fourth Amendment may refer to the Agreement without
making specific reference to this Fourth

                                       56
<PAGE>   57

Amendment but nevertheless all such references shall be deemed to include, to
the extent applicable, this Fourth Amendment unless the context shall otherwise
require.

         3.6   COMPLIANCE. The Company certifies that immediately before and
after giving effect to this Fourth Amendment, no Default or Event of Default
exists or would exist after giving effect hereto; provided that the Company may
not be in compliance with the covenant contained in Section 6.2 before giving
effect to this Fourth Amendment.

         3.7   FULL DISCLOSURE. The Company warrants and represents to you that,
as of the effective date hereof, none of the written statements, documents or
other written materials furnished by, or on behalf of, the Company to you in
connection with the negotiation, execution and delivery of this Fourth Amendment
contain any untrue statement of a material fact or omit a material fact
necessary to make the statements contained therein or herein not misleading in
light of the circumstances in which they were made. There is no fact of which
any of the Company's executive officers has actual knowledge which the Company
has not disclosed to you which materially affects adversely or, so far as the
Company can now reasonably foresee, will materially affect adversely the
business, prospects, profits, Properties or condition (financial or otherwise)
of the Company and the Subsidiaries, taken as a whole, or the ability of the
Company to perform its obligations set forth in the Agreement (after giving
effect to this Fourth Amendment) and the Notes.

         3.8   EFFECTIVENESS OF AMENDMENTS. The amendments to the Agreement
contemplated by Section 2 hereof shall (in accordance with Section 10.5(a) of
the Agreement) become effective (retroactive to September 30, 1999), if at all,
at such time as the Company and the Required Holders of the Notes shall have
indicated their written consent to such amendments by executing and delivering
the applicable counterparts of this Fourth Amendment. It is understood that any
holder of Notes may withhold its consent for any reason, including, without
limitation, any failure of the Company to satisfy all of the following
conditions:

               (a)  This Fourth Amendment shall have been executed and
         delivered by the Company and each of the Required Holders of the Notes.

               (b)  The execution, delivery and effectiveness of an agreement,
         signed by the Company and the requisite holders of the Company's First
         Amended and Restated 9.12% Senior Notes due November 1, 2001 issued
         under Note Purchase Agreements dated as of October 1, 1994, containing
         amendments to such Note Purchase Agreements identical in substance to
         the amendments set forth in Section 2 hereof.

               (c)  The execution, delivery and effectiveness of an agreement,
         signed by the Company and the requisite holders of the Company's First
         Amended and Restated 8.02% Senior Notes due October 1, 2001 issued
         under Note Purchase Agreements dated as of March 25, 1997, containing
         amendments to such Note Purchase Agreements identical in substance to
         the amendments set forth in Section 2 hereof.

                                       57
<PAGE>   58

               (d)  The Company shall have paid the statement for reasonable
         fees and disbursements of Bingham Dana LLP, your special counsel,
         presented to the Company on or prior to the effective date of this
         Fourth Amendment.

               (e)  The Company's legal counsel shall have delivered an
         opinion, dated the effective date of this Fourth Amendment,
         substantially in the form attached as Attachment 5 to this Fourth
         Amendment.

               (f)  The holders of Notes shall have received from the Company
         a certificate of a Senior Officer, dated the effective date of this
         Fourth Amendment, certifying as to the resolutions attached thereto and
         other corporate proceedings relating to the authorization, execution
         and delivery of this Fourth Amendment and the transactions contemplated
         hereby.

         3.9   AMENDMENT FEE. The Company shall pay a fee to all holders of
Notes, in consideration of the amendment set forth herein, in an amount equal to
0.20% of the outstanding principal amount of the Notes held by such holder as of
the date hereof. Such fee shall be paid no later than the fifth business day
after all of the Required Holders have executed this Fourth Amendment.

         3.10  COMMITMENT TO SELL NOTES. Each of the holders listed on
Attachment 6 to this Fourth Amendment hereby irrevocably commits to sell the
Repurchased Notes held by such holder upon payment therefor by the Company on or
before January 15, 2000 in accordance with, and in the amount provided in,
Section 6.15(b) of the Agreement (as amended by this Fourth Amendment) and such
Attachment 6.

         3.11  WAIVER OF DELIVERY REQUIREMENT. In order to facilitate the
Company's prompt compliance with its obligations under Section 6.15(b) of the
Agreement (as amended by this Fourth

                                       58
<PAGE>   59

Amendment), each of the Note holders hereby waives, with respect to the
Securitization Transaction to be consummated in connection with the fulfillment
of the Company's obligations under Section 6.15(b), the requirement in the
definition of Permitted Securitization that certain deliveries be made by the
Company not less than ten Business Days prior to the date of the consummation of
a Permitted Securitization; provided, however, that the Company shall make such
deliveries as promptly as reasonably practicable and, in any event, not less
than five Business Days prior to the consummation of such Securitization
Transaction.

      [Remainder of page intentionally blank. Next page is signature page.]

                                       59
<PAGE>   60

         ACCEPTED:
                                    ASSET ALLOCATION & MANAGEMENT
                                    COMPANY AS AGENT FOR CENTRAL
                                    STATES HEALTH & LIFE COMPANY OF
                                    OMAHA

                                    By /S/ K. Lange
                                      -----------------------------------------
                                           Name: Kathy Lange
                                           Title: Portfolio Manager

                                    ASSET ALLOCATION & MANAGEMENT
                                    COMPANY AS AGENT FOR THE CHARLES
                                    SCHWAB TRUST COMPANY FBO
                                    GUARANTY INCOME LIFE INSURANCE
                                    COMPANY

                                    By /S/ K. Lange
                                      -----------------------------------------
                                           Name: Kathy Lange
                                           Title: Portfolio Manager

                                    ASSET ALLOCATION & MANAGEMENT
                                    COMPANY AS AGENT FOR AMERICAN
                                    COMMUNITY MUTUAL INSURANCE

                                    By /S/ K. Lange
                                      -----------------------------------------
                                           Name: Kathy Lange
                                           Title: Portfolio Manger

                                    ASSET ALLOCATION & MANAGEMENT
                                    COMPANY AS AGENT FOR CENTRAL RE
                                    CORP. & PHOENIX

                                    By /S/ K. Lange
                                      -----------------------------------------
                                           Name: Kathy Lange
                                           Title: Portfolio Manager

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       60
<PAGE>   61
                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR OLD GUARD
                                        MUTUAL INSURANCE COMPANY

                                        By /S/ K. Lange
                                           -------------------------------------
                                               Name: Kathy Lange
                                               Title: Portfolio Manager

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR OZARK
                                        NATIONAL LIFE INSURANCE COMPANY

                                        By /S/ K. Lange
                                           -------------------------------------
                                               Name: Kathy Lange
                                               Title: Portfolio Manager

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR CSA
                                        FRATERNAL LIFE

                                        By /S/ K. Lange
                                           -------------------------------------
                                               Name: Kathy Lange
                                               Title: Portfolio Manager

                                        ASSET ALLOCATION & MANAGEMENT
                                        COMPANY AS AGENT FOR KANAWHA
                                        INSURANCE COMPANY

                                        By /S/ K Lange
                                           -------------------------------------
                                               Name: Kathy Lange
                                               Title: Portfolio Manager

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       61

<PAGE>   62

ACCEPTED:
                                         COMBINED INSURANCE COMPANY OF AMERICA
                                         BY: AON ADVISORS, INC.

                                         By /S/ Keith Lemmer
                                           -------------------------------------
                                                Name: Keith Lemmer
                                                Title: Senior Portfolio Manager

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       62
<PAGE>   63

ACCEPTED:
                                   CONNECTICUT GENERAL LIFE
                                   INSURANCE COMPANY
                                   BY CIGNA INVESTMENTS, INC. (authorized agent)

                                   By /S/ James R. Kuzemchak
                                      ------------------------------------------
                                          Name: James R. Kuzemchak
                                          Title: Managing Director

                                   CONNECTICUT GENERAL LIFE
                                   INSURANCE COMPANY,
                                   ON BEHALF OF ONE OR MORE SEPARATE ACCOUNTS
                                   BY CIGNA INVESTMENTS, INC. (authorized agent)

                                   By /S/ James R. Kuzemchak
                                      ------------------------------------------
                                          Name: James R. Kuzemchak
                                          Title: Managing Director

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       63

<PAGE>   64

ACCEPTED:
                                      MASSACHUSETTS MUTUAL LIFE
                                      INSURANCE COMPANY

                                      By /S/ Richard E Spencer II
                                         ---------------------------------------
                                             Name: Richard E Spencer II
                                             Title:

                                      CM LIFE INSURANCE COMPANY

                                      By /S/ Richard E Spencer II
                                         ---------------------------------------
                                             Name: Richard E Spencer II
                                             Title:

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       64

<PAGE>   65

ACCEPTED:
                                            NATIONWIDE LIFE INSURANCE
                                            COMPANY

                                            By /S/ Mark Poeppelman
                                               ---------------------------------
                                                   Name: Mark W. Poeppelman
                                                   Title: Authorized Signatory

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       65

<PAGE>   66

ACCEPTED:
                            PAN AMERICAN LIFE INSURANCE
                            COMPANY

                            By /S/ F. A Stone
                               -------------------------------------------------
                                   Name: F. Anderson Stone
                                   Title: Vice President Corporate Securities

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       66
<PAGE>   67

ACCEPTED:
                                      PHOENIX HOME LIFE MUTUAL
                                      INSURANCE COMPANY
                                      BY: PHOENIX INVESTMENT COUNSEL, INC.

                                      By /S/ Rosemary T. Strekel
                                         ---------------------------------------
                                             Name: Rosemary T. Strekel
                                             Title: Senior Managing Director

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       67

<PAGE>   68
ACCEPTED:
                               SECURITY BENEFIT LIFE INSURANCE
                               COMPANY

                               By /S/ Steven M. Bowser
                                  ----------------------------------------------
                                      Name: Steven M. Bowser
                                      Title: Vice President - Sr. Portfolio Mgr.

  [Signature Page to Fourth Amendment to Note Purchase Agreement in respect of
      8.24% Senior Notes Due July 1, 2001 of Credit Acceptance Corporation]

                                       68

<PAGE>   69

                                  ATTACHMENT 4

                                                                       EXHIBIT A

                                 [FORM OF NOTE]
         THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"). ANY RESALE OR TRANSFER OF THIS NOTE WITHOUT
REGISTRATION UNDER THE SECURITIES ACT MAY ONLY BE MADE IN A TRANSACTION EXEMPT
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.

                          CREDIT ACCEPTANCE CORPORATION

         SECOND AMENDED AND RESTATED 8.99% SENIOR NOTE DUE JULY 1, 2001
  [FROM AND INCLUDING DECEMBER 1, 1999 TO, BUT NOT INCLUDING, JANUARY 15, 2000]

         SECOND AMENDED AND RESTATED 9.49% SENIOR NOTE DUE JULY 1, 2001
                        [FROM AND AFTER JANUARY 15, 2000]

NO. R-___
$____________
PPN: 225310 A@ 0                                                          [DATE]

         CREDIT ACCEPTANCE CORPORATION, a Michigan corporation (the "Company"),
for value received, hereby promises to pay to ____________ or registered assigns
the principal sum of ____________ DOLLARS ($____________) on July 1, 2001 and to
pay interest (computed on the basis of a 360-day year of twelve 30-day months)
on the unpaid principal balance thereof from the date of this Note (i) at the
rate of seven and ninety-nine one-hundredths percent (7.99%) per annum through
(but not including) July 1, 1998, (ii) at the rate of eight and twenty-four
one-hundredths percent (8.24%) per annum from and after July 1, 1998 through
(but not including) December 1, 1999, (iii) at the rate of eight and ninety-nine
one-hundredths percent (8.99%) per annum from (and including) and after December
1, 1999 through (but not including) January 15, 2000, and (iv) at the rate of
nine and forty-nine one-hundredths percent (9.49%) per annum from and after
January 15, 2000, payable semi-annually on the first (1st) day of January and
July in each year, commencing on the payment date next succeeding the date
hereof, until the principal amount hereof shall become due and payable; and to
pay on demand interest on any overdue principal (including any overdue
prepayment of principal) and Make-Whole Amount, if any, and (to the extent
permitted by applicable law) on any overdue installment of interest, at a rate
equal to the lesser of (a) the highest rate allowed by applicable law or (b)
nine and ninety-nine one-hundredths percent (9.99%) per annum if such time is
prior

                                      A-1

<PAGE>   70

to July 1, 1998, ten and twenty-four one-hundredths percent (10.24%) per
annum if such time is on or after July 1, 1998 but prior to December 1, 1999,
ten and ninety-nine one-hundredths percent (10.99%) per annum if such time is on
or after December 1, 1999 but prior to January 15, 2000 and eleven and
forty-nine one-hundredths percent (11.49%) per annum if such time is on or after
January 15, 2000.

         Payments of principal, Make-Whole Amount, if any, and interest shall be
made in such coin or currency of the United States of America as at the time of
payment is legal tender for the payment of public and private debts to the
registered holder hereof at the address shown in the register maintained by the
Company for such purpose, in the manner provided in the Note Purchase Agreement
(defined below).

         This Note is one of an issue of Notes of the Company issued in an
aggregate principal amount limited to Seventy Million Dollars ($70,000,000)
pursuant to the Company's separate Note Purchase Agreements, each dated as of
August 1, 1996 (collectively, as may be amended from time to time, the "Note
Purchase Agreement"), with the purchasers listed on Annex 1 thereto. This Note
is entitled to the benefits of the Note Purchase Agreement and the terms thereof
are incorporated herein by reference. Capitalized terms used herein and not
otherwise defined herein have the meanings specified in the Note Purchase
Agreement. As provided in the Note Purchase Agreement, this Note is subject to
prepayment, in whole or in part, in certain cases without a Make-Whole Amount
and in other cases with a Make-Whole Amount. The Company agrees to make required
prepayments on account of such Notes in accordance with the provisions of the
Note Purchase Agreement.

         This Note is a registered Note and is transferable only by surrender
hereof at the principal office of the Company as specified in the Note Purchase
Agreement, duly endorsed or accompanied by a written instrument of transfer duly
executed by the registered holder of this Note or its attorney duly authorized
in writing.

         Under certain circumstances, as specified in the Note Purchase
Agreement, the principal of this Note (in certain cases together with any
applicable Make-Whole Amount) may be declared due and payable in the manner and
with the effect provided in the Note Purchase Agreement.

         The Company's Second Amended and Restated [8.99%] [9.49%] Senior Notes
due July 1, 2001 (the "Second Amended and Restated Notes") amend and restate the
Company's First Amended and Restated 8.24% Senior Notes due July 1, 2001 (the
"First Amended and Restated Notes") and its 7.99% Senior Notes due July 1, 2001
(the "Original Notes"). The obligations formerly evidenced by the First Amended
and Restated Notes and the Original Notes are continuing obligations which are
evidenced by the Second Amended and Restated Notes and nothing contained in the
Second Amended and Restated Notes shall be deemed to constitute payment,
settlement or a novation of such obligations.

                                      A-2
<PAGE>   71

         THIS NOTE AND THE NOTE PURCHASE AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, INTERNAL CONNECTICUT LAW.

                                    CREDIT ACCEPTANCE CORPORATION

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

                                      A-3

<PAGE>   72

                                  ATTACHMENT 5

                     [FORM OF COMPANY COUNSEL LEGAL OPINION]
                                December 1, 1999

To each of the Persons
listed on Annex 1 hereto

                  Re:  Credit Acceptance Corporation, a Michigan
                       corporation (the "Company")

Ladies and Gentlemen:

         We have acted as special counsel to the Company and have provided this
opinion pursuant to the Fourth Amendment to Note Purchase Agreement, dated as of
December 1, 1999 (the "Fourth Amendment"), among the Company and the Persons
listed on Annex 1 thereto (the "Holders"), in respect of the separate Note
Purchase Agreements, each dated as of August 1, 1996 (collectively, as amended
by the First Amendment to Note Purchase Agreement dated as of December 12, 1997,
the Second Amendment to Note Purchase Agreement dated as of July 1, 1998 and the
Third Amendment to Note Purchase Agreement dated as of April 13, 1999, the
"Existing Note Agreement", and as further amended by the Fourth Amendment, the
"Amended Note Agreement"), between the Company and each of the Persons listed on
Annex 1 thereto (the "Purchasers"), pursuant to which the Company sold to the
Purchasers the Original Notes in the aggregate principal amount of $70,000,000.
The capitalized terms used herein and not defined herein have the meanings
specified in the Amended Note Agreement.

         The law covered by the opinions expressed herein is limited to the
federal law of the United States and the laws of the State of Michigan. In
rendering the opinion in paragraph (2) below, we have assumed that the laws of
the State of Connecticut as to the enforceability of the Amended Note Agreement
and the Notes are not different from the State of Michigan (excluding the choice
of law rules).

         In our examination, we have assumed the genuineness of all signatures
(other than signatures of officers of the Company), the legal capacity of
natural persons, the authenticity of all documents submitted to us as originals
or copies, the conformity with originals of all documents submitted to us as
copies and, as to documents executed by the Holders and Persons other than the
Company, that each such Person executing documents had the power to enter into
and perform its obligations under such documents, and that such documents have
been duly authorized, executed and delivered by, and are binding upon and
enforceable against, such Persons.

                                       1
<PAGE>   73

         In rendering our opinion, we have relied, without further investigation
or analysis, upon certificates of officers of the Company attached hereto;
warranties and representations as to certain factual matters made by the Company
and by the Holders in the Amended Note Agreement and in the certificate
delivered to the Holders pursuant to the Fourth Amendment.

         In acting as such counsel, we have examined (a) the Existing Note
Agreement, (b) the Fourth Amendment, including the form of the Company's Second
Amended and Restated 8.99% Senior Note due July 1, 2001 attached to the Fourth
Amendment as Attachment 4, (c) the bylaws of the Company, (d) the records of
proceedings of the board of directors of the Company, (e) a certified copy of
the articles of incorporation of the Company, as in effect on the date hereof,
and (f) originals, or copies certified or otherwise identified to our
satisfaction, of such other documents, records, instruments and certificates of
public officials as we have deemed necessary or appropriate to enable us to
render this opinion. The First Amended and Restated Notes held by the Holders,
as amended and restated pursuant to the Fourth Amendment, are referred to herein
as the "Notes".

         Based upon and subject to the foregoing and to the additional
assumptions, qualifications and limitations set forth herein, we are of the
opinion that:

         1. The Fourth Amendment has been duly authorized by all necessary
corporate action on the part of the Company and has been executed and delivered
by a duly authorized officer of the Company.

         2. Each of the Amended Note Agreement and the Notes constitute a legal,
valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, except as (a) the enforceability thereof may be
limited by or subject to bankruptcy, insolvency, fraudulent conveyance,
reorganization, moratorium or similar laws now or hereafter affecting creditors'
rights generally, and (b) rights or remedies (including, without limitation,
acceleration, specific performance and injunctive relief) may be limited by
equitable principles of general applicability (including, without limitation,
standards of materiality, good faith, fair dealing and reasonableness) whether
such principles are considered in a proceeding in equity or at law, and may be
subject to the discretion of the court before which any proceedings therefor may
be brought.

         3. All consents, approvals and authorizations of Governmental
Authorities required on the part of the Company have been obtained in connection
with the execution and delivery of the Fourth Amendment.

         4. The execution and delivery of the Amended Note Agreement in
accordance with, and subject to the terms and conditions of, the Amended Note
Agreement, by the Company and the performance by the Company of its obligations
thereunder and under the Notes do not violate any applicable statute, rule or
regulation to which the Company is subject.

                                       2
<PAGE>   74

         5. Under existing law, the amendment of the First Amended and Restated
Notes under the circumstances contemplated by the Fourth Amendment is an exempt
transaction under the Securities Act and neither the registration of the Notes
under the Securities Act, nor the qualification of an indenture with respect
thereto under the Trust Indenture Act of 1939, as amended, is required in
connection with such transaction.

         In rendering this opinion, we assume no obligation to revise or
supplement this opinion should any law now in effect be changed by legislative
action, judicial decision or otherwise.

         We acknowledge that this opinion is being issued at the request of the
Company pursuant to the Fourth Amendment and we agree that the parties listed on
Annex 1 thereto are relying hereon. Future holders of the Notes may rely on this
opinion as if it were addressed to them. Except as otherwise provided in this
paragraph, no one is entitled to rely on this opinion.

         This opinion is solely for the information of the addressees hereof,
and is not to be quoted in whole or in part or otherwise referred to, nor is it
to be filed with any governmental agency or other person without our prior
written consent (except that you may furnish a copy hereof (i) to any one or
more of your employees, officers, directors, agents, attorneys, accountants or
professional consultants, (ii) to any state or federal authority or independent
insurance board or body having regulatory jurisdiction over any holder of a
Note, (iii) pursuant to order or legal process of any court or governmental
agency, (iv) in connection with any legal action in which you are a party
arising out of or in respect of the transactions contemplated under the Amended
Note Agreement, and (v) for informational and due diligence purposes only, to
prospective transferees of the Notes).

                                                            Very truly yours,

                                       3
<PAGE>   75

                                  ATTACHMENT 6

             LIST OF HOLDERS OF NOTES WHOSE NOTES WILL BE PURCHASED
                     BY COMPANY PURSUANT TO SECTION 6.15(B)

<TABLE>
<CAPTION>

1997 Series                                             Reg. No.     Principal Outstanding
-----------                                             --------     ---------------------
<S>                                                   <C>          <C>
The Guardian Life Insurance Company of America          R-1          $10,210,452.96
Massachusetts Mutual Life Insurance Company             R-2          $ 5,105,226.48
Nationwide Life Insurance Company                       R-3          $ 5,105,226.48
Farm Bureau Life Insurance Company                      R-6          $ 1,531,567.95
Farm Bureau Mutual Insurance Company                    R-7          $ 1,021,045.30
American Bankers Insurance Company of Florida           R-8          $ 1,531,567.95
Voyager Property & Casualty Insurance Co.               R-9          $ 1,021,045.30
                                                                     --------------
      Subtotal                                                       $25,526,132.42

1996 Series
Massachusetts Mutual Life Insurance Company             R-1          $ 3,764,285.71
                                                        R-3          $ 1,217,857.14
                                                        R-4          $   332,142.86
                                                        R-30         $ 1,328,571.43
Nationwide Life Insurance Company                       R-5          $ 5,535,714.29
Security Benefit Life Insurance Company                 R-17         $ 2,657,142.86
Combined Insurance Company of America                   R-29         $ 2,214,285.71
                                                                     --------------
     Subtotal                                                        $17,050,000.00

1994 Series
Western Farm Bureau Life Insurance                      R-12         $ 1,095,833.34
FBL Insurance Company                                   R-13         $ 2,410,833.34
Ohio Casualty Insurance Co.                             R-17         $ 1,315,000.00
Ohio Life Insurance Company                             R-18         $   876,666.66
Washington National Insurance Company                   R-39         $   258,497.17
William Blair & Company, L.L.C.                         R-40         $   500,000.00*
Lincoln Life & Annuity Company of New York              R-44         $   317,951.52
                                                        R-45         $   206,797.74
                                                                     --------------
     Subtotal                                                        $ 6,981,579.77

TOTAL                                                                $49,557,712.19
</TABLE>

*Represents a portion of Note which has a total of $646,242.92 principal amount
outstanding.<PAGE>   1

                                                              EXHIBIT 4 (C) (06)

                                 FIRST AMENDMENT
                                       TO
                   THIRD AMENDED AND RESTATED CREDIT AGREEMENT

         This FIRST AMENDMENT TO THIRD AMENDED AND RESTATED CREDIT AGREEMENT
("First Amendment") is made as of this 10th day of December, 1999 by and among
Credit Acceptance Corporation, a Michigan corporation ("Company"), the Permitted
Borrowers signatory hereto (each, a "Permitted Borrower" and collectively, the
"Permitted Borrowers"), Comerica Bank and the other banks signatory hereto
(individually, a "Bank" and collectively, the "Banks") and Comerica Bank, as
agent for the Banks (in such capacity, "Agent").

                                    RECITALS

         A. Company, Permitted Borrowers, Agent and the Banks entered into that
Third Amended and Restated Credit Agreement dated as of June 15, 1999 (the
"Credit Agreement") under which the Banks renewed and extended (or committed to
extend) credit to the Company and the Permitted Borrowers, as set forth therein.

         B. The Company and the Permitted Borrowers have requested that Agent
and the Banks agree to make certain amendments to the Credit Agreement and Agent
and the Banks are willing to do so, but only on the terms and conditions set
forth in this First Amendment.

         NOW, THEREFORE, Company, Permitted Borrowers, Agent and the Banks
agree:

         l.       Section 1 of the Credit Agreement is hereby amended and
                  restated in its entirety as set forth in Attachment 2 marked
                  "Selected Sections - Section 1", which Attachment 2 is marked
                  (for the convenience of the parties), to show the changes from
                  Section 1 of the Credit Agreement.

         2.       Sections 2.13 and 2.15 and of the Credit Agreement are hereby
                  amended and restated in their entirety as set forth in
                  Attachment 3 marked "Selected Sections - Sections 2.13 and
                  2.15", which Attachment 3 is marked (for the convenience of
                  the parties), to show the changes from Sections 2.13 and 2.15
                  of the Credit Agreement.

         3.       Section 7 of the Credit Agreement is hereby amended and
                  restated in its entirety as set forth in Attachment 4 marked
                  "Selected Sections - Section 7", which Attachment

<PAGE>   2
                  4 is marked (for the convenience of the parties), to show the
                  changes from Section 7 of the Credit Agreement.

         4.       Section 8 of the Credit Agreement is hereby amended and
                  restated in its entirety as set forth in Attachment 5 marked
                  "Selected Sections - Section 8", which Attachment 5 is marked
                  (for the convenience of the parties), to show the changes from
                  Section 8 of the Credit Agreement; provided, however, that the
                  amendment in Section 8.11 of the Credit Agreement shall be
                  given retroactive effect to July 1, 1998.

         5.       In order to facilitate the Company's Permitted Senior Note
                  Prepayment described in Section 1 of the Credit Agreement (as
                  amended by this First Amendment), the Banks hereby waive, with
                  respect to the Permitted Securitization to be consummated in
                  connection with the Permitted Senior Note Prepayment, the
                  requirement in the definition of Permitted Securitization that
                  certain deliveries be made by the Company not less than ten
                  Business Days prior to the date of the consummation of a
                  Permitted Securitization; provided, however, that the Company
                  shall make such deliveries as promptly as reasonably
                  practicable and, in any event, not less than five Business
                  Days prior to the consummation of such Permitted
                  Securitization.

         6.       Subject to the terms and conditions of this First Amendment,
                  this First Amendment will confirm that (a) the Waiver (issued
                  pursuant to the Waiver Letter dated as of October 20, 1999, as
                  extended) continues in full force, except that the restriction
                  on Permitted Repurchases set forth therein and the provisions
                  concerning the expiration of such Waiver shall no longer apply
                  and (b) for the avoidance of doubt, the Banks hereby consent
                  to amendments to the Securitization Documents substantially in
                  form and substance as the draft Amendment No. 3 to Security
                  Agreement dated December 7, 1999 and draft Amendment No. 2 to
                  Note Purchase Agreement dated December 6, 1999 previously
                  distributed to the Agent and the Banks.

         7.       Replacement Schedules 1.1 (Pricing Grid) and 6.15 (Litigation)
                  to the Credit Agreement set forth on Attachments 1A and 1B
                  shall replace in their entirety, existing Schedules 1.1 and
                  6.15 respectively to the Credit Agreement.

         8.       This First Amendment shall become effective, according to the
                  terms and as of the date hereof, upon satisfaction by the
                  Company and the Permitted Borrowers, on or before December 10,
                  1999, of the following conditions:

                  (a)      Agent shall have received counterpart originals of
                           this First Amendment, in each case duly executed and
                           delivered by Company, the Permitted Borrowers and the
                           requisite Banks, in form satisfactory to Agent and
                           the Banks;

                  (b)      Agent shall have received from the Company and each
                           of the Permitted Borrowers a certification (i) that
                           all necessary actions have been taken by such parties
                           to authorize execution and delivery of this First
                           Amendment, supported by such resolutions or other
                           evidence of corporate authority or action as
                           reasonably required by Agent and the Majority Banks
                           and that no

<PAGE>   3

                           consents or other authorizations of any third parties
                           are required in connection therewith; and (ii) that,
                           after giving effect to this First Amendment, no
                           Default or Event of Default has occurred and is
                           continuing on the proposed effective date of the
                           First Amendment;

                  (c)      Agent shall have received, with a copy for each of
                           the Banks, amendments to the Senior Debt Documents
                           executed and delivered by the Company and the
                           requisite holders of the Senior Debt, such amendments
                           to be in form and substance satisfactory to the Agent
                           and the Majority Banks; and

                  (d)      Company shall have paid (directly, or through the
                           Agent) to those Banks which have executed and
                           delivered this First Amendment (subject to the terms
                           and conditions hereof) on or before the close of
                           business on December 10, 1999 an amendment fee in the
                           amount of twenty (20) basis points on the aggregate
                           commitment of each such Bank under the Revolving
                           Credit as of the date of the First Amendment.

                  If the foregoing conditions have not been satisfied or waived
                  on or before December 10, 1999, this First Amendment shall
                  lapse and be of no further force and effect.

         9.       Each of the Company and the Permitted Borrowers ratifies and
                  confirms, as of the date hereof and after giving effect to the
                  amendments contained herein, each of the representations and
                  warranties set forth in Sections 6.1 through 6.22, inclusive,
                  of the Credit Agreement and acknowledges that such
                  representations and warranties are and shall remain continuing
                  representations and warranties during the entire life of the
                  Credit Agreement.

         10.      Except as specifically set forth above, this First Amendment
                  shall not be deemed to amend or alter in any respect the terms
                  and conditions of the Credit Agreement, any of the Notes
                  issued thereunder or any of the other Loan Documents, or to
                  constitute a waiver by the Banks or Agent of any right or
                  remedy under or a consent to any transaction not meeting the
                  terms and conditions of the Credit Agreement, any of the Notes
                  issued thereunder or any of the other Loan Documents.

         11.      Unless otherwise defined to the contrary herein, all
                  capitalized terms used in this First Amendment shall have the
                  meaning set forth in the Credit Agreement.

         12.      This First Amendment may be executed in counterpart in
                  accordance with Section 13.10 of the Credit Agreement.

         13.      Comerica Bank - Canada having been designated by Comerica
                  Bank, in its capacity as swing line bank (and as a Bank) under
                  the Credit Agreement to fund Comerica Bank's advances in $C
                  pursuant to Section 11.12 of the Credit Agreement, has
                  executed this First Amendment to evidence its approval of the
                  terms and conditions thereof.

                                       3

<PAGE>   4

         14.      This First Amendment shall be construed in accordance with and
                  governed by the laws of the State of Michigan.
                     [SIGNATURES FOLLOW ON SUCCEEDING PAGES]

                                       4
<PAGE>   5

         WITNESS the due execution hereof as of the day and year first above
written.

COMERICA BANK,                              CREDIT ACCEPTANCE CORPORATION
 as Agent

By:   /S/ Scottie S. Knight                 By:  /S/ Douglas W. Busk
   --------------------------------            ---------------------------------

Its: Vice President                         Its: Treasurer
   --------------------------------            ---------------------------------
One Detroit Center
500 Woodward Avenue
Detroit, Michigan 48226
Attention: Michael P. Stapleton

COMERICA BANK - CANADA                      CREDIT ACCEPTANCE CORPORATION
                                            UK LIMITED

By:  /S/ Philip Buxton                      By:/S/ Douglas W. Busk
   --------------------------------            ---------------------------------

Its:/S/ Managing Director                   Its: Treasurer
   --------------------------------            ---------------------------------
        And Chief Executive Officer

                                            CAC OF CANADA LIMITED

                                            By: /S/ Douglas W. Busk
                                               ---------------------------------

                                            Its: Treasurer
                                                          ----------------------

                                            CREDIT ACCEPTANCE CORPORATION
                                            IRELAND LIMITED

                                            By: /S/ Douglas W. Busk
                                                --------------------------------

                                            Its: Treasurer
                                                          ----------------------

                                       5
<PAGE>   6

BANKS:                            COMERICA BANK

                                  By:  /S/ Scottie S. Knight
                                     -------------------------------------------

                                  Its: Vice President
                                                     ---------------------------

                                  LASALLE BANK NATIONAL ASSOCIATION

                                  By:  /S/ Lisa Man
                                     -------------------------------------------

                                  Its: Assistant Vice President
                                       -----------------------------------------

                                  HARRIS TRUST AND SAVINGS BANK

                                  By:  /S/ Michael A Cameli
                                     -------------------------------------------

                                  Its: Vice President
                                       -----------------------------------------

                                  NATIONAL CITY BANK OF MINNEAPOLIS

                                  By:  /S/ Steven Berglund
                                     -------------------------------------------

                                  Its: Assistant Vice President
                                       -----------------------------------------

                                  BANK OF AMERICA, N.A.

                                  By:  /S/ Elizabeth Kurilecz
                                     -------------------------------------------

                                  Its: Managing Director
                                       -----------------------------------------

                                                              Signature Page For
                                                             CAC First Amendment

<PAGE>   7

                                  THE BANK OF NOVA SCOTIA

                                   By:  /S/ F.C.H. Ashby
                                     -------------------------------------------

                                   Its: Senior Manager Loan Operations
                                       -----------------------------------------

                                   UNION BANK OF CALIFORNIA, N.A.

                                   By:  /S/ Robert C Nagel
                                     -------------------------------------------

                                   Its: Vice President
                                       -----------------------------------------

                                                              Signature Page For
                                                             CAC First Amendment

<PAGE>   8

                                  ATTACHMENT 1

                    "REPLACEMENT SCHEDULE 1.1 - Pricing Grid"

<PAGE>   9

                                  Attachment 1

                                 SCHEDULE 1.1*/

                                 PRICING MATRIX
<TABLE>
<CAPTION>

---------------------------------------------------------------------------------------------------------------------------

                                               THE APPLICABLE MARGIN FOR               APPLICABLE FEE PERCENTAGE FOR
---------------------------------------------------------------------------------------------------------------------------
 NOTWITHSTANDING   ADVANCES AT THE      ADVANCES OF THE        ADVANCES OF        REVOLVING         LETTER OF CREDIT
  THE COMPANY'S    PRIME-BASED RATE     REVOLVING CREDIT     THE TERM LOAN      CREDIT FACILITY          FEE
   RATING LEVEL:       SHALL BE          CARRIED AT THE       CARRIED AT THE         FEE
                                          EUROCURRENCY-       EUROCURRENCY-
                                        BASED RATE SHALL     BASED RATE SHALL
                                              BE                    BE
---------------------------------------------------------------------------------------------------------------------------
<S>                <C>                 <C>                   <C>              <C>                <C>
                         0%                  1.40%                 2.00%            .6000%               1.525%
                                                                                                  (inclusive of facing fee)
---------------------------------------------------------------------------------------------------------------------------
 APPLICABLE FEE                                 If Utilization is <  50% of RCMA,**/ 0%
 PERCENTAGE FOR
 UTILIZATION FEE                                   If Utilization is > 50%, 0.25%
                                                                    ---
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

------------------------------------
     */ All terms as defined in the Agreement.

     **/ "RCMA" shall mean the Revolving Credit Maximum Amount as determined
hereunder, or, in the event the Company has elected to convert the outstandings
under the Revolving Credit to a Term Loan pursuant to Section 4.1, "RCMA" shall
mean the Revolving Credit Maximum Amount as in effect immediately prior to such
conversion. All other capitalized terms shall be defined as in the Agreement.

<PAGE>   10

                                  ATTACHMENT 2

                        "SELECTED SECTIONS -- Section 1"

<PAGE>   11

         1.       DEFINITIONS

         For the purposes of this Agreement the following terms will have the
following meanings:

         "Account Party(ies)" shall mean, with respect to any Letter of Credit,
the account party or parties (which shall be Company and/or any Permitted
Borrower) as named in an application to the Agent for the issuance of such
Letter of Credit.

         "Advance(s)" shall mean, as the context may indicate, a borrowing
requested by Company or by a Permitted Borrower, and made by Banks under Section
2.1 or 4.1 of this Agreement, as the case may be, or requested by the Company or
by a Permitted Borrower and made by the Swing Line Bank under Section 2.5 hereof
(including without limitation any readvance, refunding or conversion of such
borrowing pursuant to Section 2.3, 2.5(c) or 4.4 hereof) and any advance in
respect of a Letter of Credit under Section 3.6 hereof (including without
limitation the unreimbursed amount of any draws under Letters of Credit), and
shall include, as applicable, a Eurocurrency-based Advance, a Quoted Rate
Advance, a Prime-based Advance and a Swing Line Advance.

         "Advances to Dealers" shall mean, as of any applicable date of
determination, the Dollar Amount of advances in respect of Installment
Contracts, as such amount would appear in the footnotes to the financial
statements of the Company and its Subsidiaries prepared in accordance with GAAP
(and if such amount is not shown net of such reserves, then net of any reserves
established by the Company as an allowance for credit losses related to such
advances not expected to be recovered), provided that Advances to Dealers shall
not include (a) any such advances (and the related Installment Contracts)
transferred or encumbered pursuant to a Permitted Securitization (whether or not
attributable to the company under GAAP), unless and until such advances (and the
related installment contracts) are reassigned to the Company or a subsidiary of
the Company or such encumbrances are discharged or (b) Charged-Off Advances, to
the extent that such Charged-Off Advances exceed the portion of the Company's
allowance for credit losses related to reserves against such advances not
expected to be recovered, as such allowance would appear in the footnotes to the
financial statements of the Company and its Subsidiaries prepared in accordance
with GAAP at such time. For purposes of this definition, "Charged-Off Advances"
shall mean those Advances to Dealers which the Company or any of its
Subsidiaries has determined, based on the application of a static pool analysis
or otherwise, are completely or partially impaired, to the extent of such
impairment.

         "Affiliate" shall mean, at any time, a Person (other than a Subsidiary)
(a) that directly or indirectly through one or more intermediaries Controls, or
is Controlled by, or is under common Control with, the Company; (b) that
beneficially owns or holds five percent (5%) or more of any class of the voting
stock of the Company; (c) five percent (5%) or more of the voting stock (or in
the case of a Person that is not a corporation, five percent (5%) or more of the
equity interest) of which is beneficially owned or held by the Company or a
Subsidiary; or (d) that is an officer or director (or a member of the immediate
family of an officer or director) of the Company or any Subsidiary; in

                                       1

<PAGE>   12

each case, at such time. As used in this definition, "Control" shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

         "Agent" shall mean Comerica Bank, a Michigan banking corporation, or
any successor appointed in accordance with Section 12.4 hereof.

         "Agent's Correspondent" shall mean:

                  (a) for Advances in Sterling, Midland Bank plc., London, Great
         Britain;

                  (b) for Advances in C$, Comerica Bank - Canada, Agent's
         Canadian Affiliate, or such other bank or banks as Agent may from time
         to time designate by written notice to Company, the Permitted Borrowers
         and the Lenders;

                  (c) for Advances in Irish Punts, Ulster Bank Limited, Ireland;
         and

                  (d) for Advances in Eurodollars, Agent's Grand Cayman Branch
         (or for the account of said branch office, at Agent's main office in
         Detroit, Michigan, United States);

or at such other bank or banks as Agent may from time to time designate by
written notice to Company, the Permitted Borrowers and the Banks.

         "Agent's Fees" shall mean those fees and expenses required to be paid
by Company to Agent under Section 12.8 hereof.

         "Aggregate Commitment" shall mean the Revolving Credit Maximum Amount,
as in effect from time to time.

         "Aggregate Sublimit" shall mean, as of any applicable date of
determination, that amount equal to twenty percent (20%), of Company's
Consolidated Tangible Net Worth, determined as of the end of each fiscal quarter
based upon the financial statements required to be delivered under Section
7.3(b) or 7.3(c) hereof, as the case may be, or (subject to the terms hereof)
determined on a monthly basis at the request of the Company based on monthly
financial statements to be delivered pursuant to Sections 2.13(b) and 2.14(b)
hereof, (and giving effect to any changes in net worth shown in the applicable
financial statements on the required date of delivery thereof).

         "Allowances for Credit Losses" shall mean those allowances or reserves
established by Company or its Subsidiaries in arriving at installment contracts
receivable, net or Leased Vehicles, as the case may be, on its Consolidated
balance sheets, as specifically identified in such financial statements or as
disclosed in the footnotes thereto; provided that Allowances for Credit Losses
shall not include allowances or reserves attributable to retail installment
contracts or leases

                                       2

<PAGE>   13

which are not at such time "Installment Contracts" or "Leases," as the case may
be, due to the proviso in the definition of such terms in this Agreement.

         "Alternate Base Rate" shall mean, for any day, an interest rate per
annum equal to the Federal Funds Effective Rate in effect on such day, plus one
percent (1%).

         "Alternative Currency" shall mean British Pounds Sterling ("Sterling"),
Canadian Dollars ("C$"), Irish Punts ("Irish Punts"), and, subject to the prior
written approval of Agent and each of the Banks and to the terms and conditions
of this Agreement, such other freely convertible foreign currencies including
(subject to the terms hereof) the "Euro", as requested by the Company or a
Permitted Borrower and acceptable to Agent and the Banks, in their reasonable
discretion. Any reference to a National Currency Unit of a Participating Member
State in this definition of "Alternative Currency" shall be deemed to also
include a reference to the Euro Unit.

         "Applicable Fee Percentage" shall mean, as of any date of determination
thereof, the applicable percentage used to calculate certain of the fees due and
payable hereunder, determined by reference to the appropriate columns in the
Pricing Matrix attached to this Agreement as Schedule

         "Applicable Interest Rate" shall mean the Eurocurrency-based Rate, the
Prime-based Rate or, with respect to Swing Line Advances, the Quoted Rate, as
selected by Company or a Permitted Borrower from time to time subject to the
terms and conditions of this Agreement.

         "Applicable Margin" shall mean, as of any date of determination
thereof, the applicable interest rate margin, determined by reference to the
appropriate columns in the Pricing Matrix attached to this Agreement as Schedule
1.1.

         "Applicable Sublimit" shall mean the Canadian Sublimit, the Irish
Sublimit or the Aggregate Sublimit, as the context may require.

         "Assignment Agreement" shall have the meaning ascribed to such term in
Section 13.8(c) hereof.

         "Back-End Dealer Agreement(s)" shall mean Dealer Agreements referred to
in clause (i) of the definition of Dealer Agreements.

         "Banks" shall mean the Banks signatory hereto (including the New Banks)
and any assignee which becomes a Bank pursuant to Section 13.8(c) hereof.

         "Business Day" shall mean any day on which commercial banks are open
for domestic and international business (including dealings in foreign exchange)
in Detroit, London (except with respect to any Prime-based Advances), and New
York and if funds are to be paid or made available in any Alternative Currency,
on such day in the place where such funds are to be paid or made available and,
if the applicable Business Day relates to the borrowing or payment of a

                                       3

<PAGE>   14

Eurocurrency-based Advance denominated in Euros, on which banks and foreign
exchange markets are open for business in the city where disbursements of or
payments on such Advance are to be made which is a Trans-European Business Day.

         "CAC Canada" is defined in the Preamble.

         "CAC Ireland" is defined in the Preamble.

         "CAC Leasing" shall mean CAC Leasing, Inc., a Michigan corporation and
a wholly-owned Subsidiary of Company.

         "CAC Life" shall mean Credit Acceptance Corporation Life Insurance
Company, an Arizona corporation and a wholly-owned Subsidiary of Company.

         "CAC UK" is defined in the Preamble.

         "Canadian BA Rate" shall mean, with respect to the relevant Advance of
C$ to CAC Canada, the rate per annum quoted by Agent's Correspondent as the
Agent's bid rate for C$ bankers' acceptances having a comparable face value as
the amount of such Advance and a tenor identical to the applicable
Eurocurrency-Interest Period as of 10:00 a.m. (Toronto time) on the first day of
such Interest Period.

         "Canadian BA Period" shall mean, for Advances of C$ to CAC Canada, an
interest Period of 30 days, 60 days, 90 days or with the consent of the Agent
180 days.

         "Canadian Prime Rate" shall mean, for any day, the per annum rate of
interest in effect for such day as announced from time to time by the Agent's
Canadian Affiliate in Toronto, Ontario as its "prime rate." (The "prime rate" is
a rate set by such Canadian Affiliate based upon various factors including such
Canadian Affiliate's costs and desired return, general economic conditions and
other factors, and is used as a reference point for pricing some loans, which
may be priced at, above or below such announced rate.) Any change in the prime
rate by such Canadian Affiliate shall take effect at the opening of business on
such day.

         "Canadian Prime-based Rate" shall mean, for any day, that rate of
interest which is equal to the sum of the Applicable Margin plus the greater of
(i) the Canadian Prime Rate and (ii) an interest rate per annum equal to the
Canadian BA Rate in effect on such day, plus one percent (1%).

         "Canadian Sublimit" shall mean, as of any applicable date of
determination, that amount equal to the lesser of

                     (a) five percent (5%) of Company's Consolidated Tangible
         Net Worth, determined as of the end of each fiscal quarter based upon
         the financial statements required

                                       4

<PAGE>   15

         to be delivered under Section 7.3(b) or 7.3(c) hereof, as the case may
         be, or (subject to the terms hereof) determined on a monthly basis at
         the request of the Company based on monthly financial statements to be
         delivered pursuant to Section 2.14(b) hereof, (and giving effect to any
         changes in net worth shown in such financial statements on the required
         date of delivery thereof); and

                     (b) the Aggregate Sublimit minus the sum of the aggregate
         principal amount of Advances outstanding to the Permitted Borrowers,
         including CAC Canada, (after giving effect to any such Advances being
         requested by any Permitted Borrower, including CAC Canada, on such
         date, using the Current Dollar Equivalent of any such Advances
         outstanding or requested in any Alternative Currency, determined
         pursuant to the terms hereof as of the date of such requested Advance),
         plus the aggregate undrawn portion of any Letters of Credit issued for
         the account of the Permitted Borrowers (including CAC Canada) which
         shall be outstanding as of the date of such requested Advance (based on
         the Dollar Amount of the undrawn portion of any Letters of Credit
         denominated in Dollars and the Current Dollar Equivalent of the undrawn
         portion of any Letters of Credit denominated in any Alternative
         Currency), the aggregate face amount of Letters of Credit requested but
         not yet issued for the account of such Permitted Borrowers (determined
         as aforesaid) and the aggregate amount of all drawings made under any
         Letter of Credit for which the Agent has not received full
         reimbursement from such Permitted Borrowers (using the Current Dollar
         Equivalent thereof for any Letters of Credit denominated in any
         Alternative Currency).

         "Capital Assets" shall mean all assets of a Person other than
intangible assets (so classified in accordance with GAAP), inventories, accounts
receivable and Investments in and securities of any other Person.

         "Cleanup Call(s)" shall mean

                     (a) in the case of an optional cleanup call, a cleanup call
         to be exercised at the option of the Company or a Special Purpose
         Subsidiary under the terms of the applicable Permitted Securitization
         (provided that, both before and after giving effect thereto, no Default
         or Event of Default has occurred and is continuing when such option is
         exercised), in an amount not in excess of (i) Fifteen Percent
         (15%) of the initial amount received by the Company or a Special
         Purpose Subsidiary pursuant to such Permitted Securitization (before
         fees and other deductions), it being understood that, for purposes of
         clause (a)(i) of this definition, each tranche of a multi-tranche
         Permitted Securitization shall be considered a separate Permitted
         Securitization or (ii) in the case of any Securitization Transaction
         structured on a revolving basis, fifteen percent (15%) of the maximum
         aggregate availability at any time to Company or a Special Purpose
         Subsidiary, and (b) in the case of a mandatory cleanup call, a
         mandatory cleanup call to be exercised at the option of the investors
         under the terms of the applicable Permitted Securitization, in an
         amount not in excess of (i) Two and One-Half Percent (2 1/2%) of the

                                       5

<PAGE>   16

         aggregate amount received by the Company or a Special Purpose
         Subsidiary pursuant to the Permitted Securitization to which such
         mandatory cleanup call relates (before fees and other deductions), it
         being understood that, for purposes of clause (b)(i) of this
         definition, all tranches of a multi-tranche Permitted Securitization
         shall be considered one Permitted Securitization or (ii) in the case of
         any Securitization Transaction structured on a revolving basis, Two and
         One-Half Percent (2 1/2%) of the maximum aggregate availability at any
         time to Company or a Special Purpose Subsidiary,

in either case, such Cleanup Call being accompanied by the repurchase of or
release of encumbrances on Advances to Dealers, Leased Vehicles, Installment
Contracts (whether assigned outright or related to Advances to Dealers) or
Leases (whether assigned outright or related to Leased Vehicles), as the case
may be, previously transferred or encumbered pursuant to such Permitted
Securitization in at least the amount of such cleanup call.

         "Closing Fee" shall mean the closing fee payable by Company to Agent,
for distribution to the Banks, in the amounts previously agreed to between Agent
and each of the Banks.

         "Collateral" shall mean (x) all right, title and interest of each of
the Company and each of its Significant Domestic Subsidiaries in, to and under
its accounts, inventory, machinery, equipment, contract rights, chattel paper,
general intangibles, including without limitation Advances to Dealers, Leased
Vehicles, Dealer Agreements (and any amounts advanced to or liens granted by
Dealers thereunder), Installment Contracts, Leases and related financial
property (such Dealer Agreements, Advances to Dealers and the Installment
Contracts, Leases, accounts, contract rights, chattel paper and general
intangibles relating to such Dealer Agreements, Advances to Dealers and Leased
Vehicles, being subject to the rights, if any, of Dealers under Dealer
Agreements), and computer records and software relating thereto, whether now
owned or hereafter acquired by such Person, (y) one hundred percent (100%) of
the share capital of each Significant Domestic Subsidiary of the Company
(whether direct or indirect) and (z) not less than sixty-five percent (65%) of
the share capital of CAC UK, and all proceeds and products of the foregoing.

         "Collateral Documents" shall mean that certain Security Agreement and
that certain English Share Charge, each dated as of December 15, 1998 and
executed and delivered by Company in favor of the Agent, as Collateral Agent
pursuant to the Intercreditor Agreement, and encumbering the property described
therein, and all other security documents (including, without limitation,
financing statements, stock powers, acknowledgments, registrations, joinders and
the like) executed by the Company or any of its Subsidiaries and delivered to
the Agent, as Collateral Agent (as aforesaid), as of the date thereof or, from
time to time, subsequent thereto in connection with such security documents,
this Agreement or the other Loan Documents, as such security documents may be in
each case amended (subject to the Intercreditor Agreement) from time to time.

         "Company" is defined in the Preamble.

                                       6

<PAGE>   17

         "Company Guaranty" shall mean that certain amended and restated
guaranty of all of the Indebtedness outstanding from the Permitted Borrowers
hereunder, executed and delivered by the Company to the Agent, on behalf of the
Banks, in connection with the Prior Credit Agreement, as amended from time to
time.

         "Consolidated" or "Consolidating" shall, when used with reference to
any financial information pertaining to (or when used as a part of any defined
term or statement pertaining to the financial condition of) Company and its
Subsidiaries, mean the accounts of Company and its Subsidiaries determined on a
consolidated or consolidating basis, as the case may be, all determined as to
principles of consolidation and, except as otherwise specifically required by
the definition of such term or by such statements, as to such accounts, in
accordance with GAAP applied on a consistent basis and consistent with the
financial statements as at and for the fiscal year ended December 31, 1998.

         "Consolidated Current Debt" shall mean, as of any applicable date of
determination, all Current Debt of the Company and its Subsidiaries, determined
on a Consolidated basis in accordance with GAAP as of such date.

         "Consolidated Fixed Charges" shall mean, for any period, the sum of (a)
Consolidated Interest Expense for such period, plus (b) Operating Rentals
payable by the Company and its Subsidiaries in respect of such period under
Operating Leases, determined after eliminating intercompany transactions among
the Company and its Subsidiaries.

         "Consolidated Income Available for Fixed Charges" shall mean, for any
period, the sum of (a) Consolidated Net Income, plus (b) the aggregate amount of
income taxes, depreciation, amortization (including the amortization of any
excess servicing asset) and Consolidated Fixed Charges (to the extent, and only
to the extent, that such aggregate amount was reflected in the computation of
Consolidated Net Income for such period), determined on a Consolidated basis for
such Persons in accordance with GAAP, plus (c) for the next succeeding four
fiscal quarters of the Company (commencing with the fiscal quarter ending
september 30, 1999), the after-tax effect of the non-cash charge in the amount
of $47,300,000 taken by the Company in its financial statements for its fiscal
quarter ending September 30, 1999 relating to the accounting adjustment to its
reserves against advances resulting from the downward revision in the Company's
collection forecasts.

         "Consolidated Interest Expense" shall mean, for any period, the amount
of interest charged or chargeable to the Consolidated Statement of Operations of
Company and its Subsidiaries in respect of such period, as determined in
accordance with GAAP.

         "Consolidated Net Income" shall mean, for any period, net earnings (or
loss) after income taxes of Company and its Subsidiaries, determined on a
Consolidated basis for such Persons, as defined according to GAAP, but
excluding:

                                       7

<PAGE>   18

         (a)          net earnings (or loss) of any Subsidiary accrued prior to
                      the date it became a Subsidiary;

         (b)          any gain or loss (net of tax effects applicable thereto)
                      resulting from the sale, conversion or other disposition
                      of Capital Assets other than in the ordinary course of
                      business;

         (c)          any extraordinary or non-recurring gains or losses
                      (including, without limitation, any gain on sale generated
                      by a Permitted Securitization, except to the extent the
                      Company has received a cash benefit therefrom in the
                      applicable reporting period); and any interest income
                      generated by a Permitted Securitization, except to the
                      extent the Company has received a cash benefit therefrom
                      in the applicable reporting period;

         (d)          any gain arising from any reappraisal or write-up of
                      assets;

         (e)          any portion of the net earnings of any Subsidiary that for
                      any reason is unavailable for payment of dividends to the
                      Company or any other Subsidiary, provided that the net
                      earnings of CAC Life that are unavailable (due to
                      regulatory requirements applicable to CAC Life) for the
                      payment of dividends to the Company may be included in the
                      determination of Consolidated Net Income, to the extent
                      that such unavailable net earnings do not exceed five
                      percent (5%) of Consolidated Net Income (determined
                      without giving effect to this proviso), and provided,
                      further that so long as the net earnings of CAC Life shall
                      be included in Consolidated Net Income pursuant to the
                      preceding proviso, CAC Life shall not have outstanding any
                      debt, regardless of whether any other Subsidiary may be
                      permitted to have debt outstanding at such time by reason
                      of a waiver of or an amendment to this Agreement;

         (f)          any gain or loss (net of tax effects applicable thereto)
                      during such period resulting from the receipt of any
                      proceeds of any insurance policy;

         (g)          except as set forth herein, any earnings of any Person
                      acquired by Company or any Subsidiary through the
                      purchase, merger or consolidation or otherwise, or
                      earnings of any Person substantially all of the assets of
                      which have been acquired by Company or any Subsidiary, for
                      any period prior to the date of acquisition;

         (h)          net earnings of any Person (other than a Subsidiary) in
                      which Company or any Subsidiary shall have an ownership
                      interest unless such net earnings shall actually have been
                      received by the Company or such Subsidiary in the form of
                      cash distributions; and

                                       8

<PAGE>   19

         (i)         any restoration during such period to income of any
                     contingency reserve, except to the extent that provision
                     for such reserve

                      (i)  was made during such period out of income accrued
         during such period,

                     (ii)  was made in connection with the Company's program of
         financing Installment Contracts or Leases

                          (A) to provide for warranty claims for which the
                      Company may be responsible, or

                          (B) to cover credit losses in connection with Advances
                      to Dealers, Installment Contracts, Leased Vehicles or
                      Leases, or

                     (iii) is required by applicable law with respect to reserve
         for claims related to the operation of CAC Life,

provided that the aggregate restoration to income during any period from
reserves described in clause (ii) and clause (iii) above shall not exceed ten
percent (10%) of Consolidated Net Income for such period, prior to giving effect
to such restoration.

         "Consolidated Senior Funded Debt" shall mean, as of any applicable date
of determination, the aggregate amount of Funded Debt of the Company and its
Subsidiaries, other than Subordinated Funded Debt, determined on a Consolidated
basis according to GAAP as of such date.

         "Consolidated Subordinated Funded Debt" shall mean, as of any
applicable date of determination, the aggregate amount of Subordinated Funded
Debt of the Company and its Subsidiaries, determined on a Consolidated basis
according to GAAP as of such date.

         "Consolidated Tangible Net Worth" shall mean the total preferred
shareholders' investment and common shareholders' investment (common stock, paid
in capital and retained earnings) as computed under GAAP, less assets properly
classified as intangible assets according to GAAP, but excluding from the
determination thereof, without duplication, (a) any excess servicing asset
resulting from the transfer, pursuant to a Permitted Securitization, of Advances
to Dealers, Leased Vehicles, Installment Contracts (whether assigned outright or
related to Advances to Dealers) or Leases (whether assigned outright or related
to Leased Vehicles) and (b) the equity interest in any Special Purpose
Subsidiary, to the extent such equity interest is included in the
determination of the total preferred shareholders' investment and common
shareholders' investment (common stock, paid in capital and retained earnings)
of the Company and its Subsidiaries computed in accordance with GAAP.

                                       9

<PAGE>   20

         "Consolidated Total Assets" shall mean the Consolidated total assets of
Company and its Subsidiaries as determined according to GAAP, but excluding
from the determination thereof, without duplication, (a) any excess servicing
asset resulting from the transfer, pursuant to a Permitted Securitization, of
Advances to Dealers, Leased Vehicles, Installment Contracts (whether assigned
outright or related to Advances to Dealers) or Leases (whether assigned outright
or related to Advances to Dealers)  and (b) the equity interest in any Special
Purpose Subsidiary, to the extent such equity interest is included in the
determination of the Consolidated Total Assets of the Company and its
Subsidiaries computed in accordance with GAAP.

         "Consolidated Total Debt" shall mean, as of any applicable date of
determination, the aggregate amount of Funded Debt and Current Debt of the
Company and its Subsidiaries, determined on a Consolidated basis according to
GAAP as of such date.

         "Covenant Compliance Report" shall mean the report to be furnished by
the Company to the Agent, in substantially the form attached to this Agreement
as Exhibit H and certified by the chief financial officer of the Company
pursuant to Section 7.3(c) hereof, as to whether the Company and its
Subsidiaries are in compliance with the financial covenants contained in
Sections 7.4 through 7.9, inclusive, of this Agreement, in which report the
Company shall set forth its calculations and the resultant ratios or financial
tests determined thereunder, and certifying that no Default or Event of Default
has occurred and is continuing.

         "Current Debt" shall mean, with respect to any Person (as of any
applicable date of determination), all Debt of such Person, other than Funded
Debt, determined as of such date according to GAAP.

         "Current Dollar Equivalent" shall mean, as of any applicable date of
determination, with respect to any Advance or Letter of Credit in an Alternative
Currency, the amount of Dollars which is equivalent to the then outstanding
principal amount of such Advance or Letter of Credit at the most favorable spot
exchange rate determined by the Agent to be available to it for the sale of
Dollars for such Alternative Currency for delivery at approximately 11:00 A.M.
(Detroit time) two (2) Business Days after such date. Alternative Currency
equivalents of Advances or Letters of Credit in Dollars (to the extent used
herein) shall be determined by Agent in a manner consistent herewith.

         "Dealer(s)" shall mean a Person engaged in the business of the retail
sale or lease of new or used motor vehicles, including both businesses
exclusively selling or leasing used motor vehicles and businesses principally
selling or leasing new motor vehicles, but having a used vehicle department,
including any such Person which constitutes an Affiliate of Company.

         "Dealer Agreement(s)" shall mean the sales and/or servicing agreements
between the Company or its Subsidiaries and a participating Dealer which sets
forth the terms and conditions under which the Company or its Subsidiaries (i)
accepts, as nominee for such Dealer, the assignment of Installment Contracts or
Leases for purposes of administration, servicing and collection and under

                                       10

<PAGE>   21

which the Company or its Subsidiary may make advances to such Dealers included
in Advances to Dealers or Leased Vehicles and (ii) accepts outright assignments
of Installments Contracts or Leases from Dealers or funds Installments Contracts
or Leases originated by such Dealer in the name of Company or any of its
Subsidiaries, in each case as such agreements may be in effect from time to
time.

         "Debt" shall mean, with respect to any Person, without duplication, (a)
its liabilities for borrowed money (whether or not evidenced by a security), (b)
any liabilities secured by any Lien existing on property owned by such Person
(whether or not such liabilities have been assumed), (c) its liabilities
consisting of Capital Lease Obligations, (d) the present value of all payments
due under any arrangement for retention of title or any conditional sale
agreement (other than a Capital Lease) discounted at the implicit rate, if
known, with respect thereto or, if unknown, at eight and eighty-seven
one-hundredths percent (8.87%) per annum, and (e) its guaranties of any
liabilities of another Person constituting liabilities of a type set forth
above; provided however that dealer holdbacks shall not be considered Debt of
the Company or its Subsidiaries; and provided further that, solely for purposes
of Section 8.5 hereof, "Debt" shall also include reimbursement obligations
(contingent or otherwise) in respect of letters of credit, obligations in
respect of bankers acceptances, and payment obligations, if any, under interest
rate protection agreements (including without limitation interest rate swaps and
similar agreements) and currency swaps and hedges and similar agreements.

         "Debt Rating" shall mean the debt rating of Company's long-term
non-credit enhanced senior debt by Fitch.

         "Default" shall mean any event which, with the giving of notice or the
passage of time, or both, would constitute an Event of Default.

         "Dollar Amount" shall mean (a) with respect to Dollars or an amount
denominated in Dollars, such amount and (b) with respect to an amount of any
other Alternative Currency or an amount denominated in such Alternative
Currency, the amount of Dollars that may be purchased with such amount of
Alternative Currency in the interbank foreign exchange market, at the most
favorable spot rate of exchange (including all related costs of conversion)
applicable to the relevant transaction determined by the Agent to be available
to it at or about 11:00 a.m. Detroit time (i) on the date on which such
calculation would be necessary for the delivery of Dollars on the applicable
date contemplated in this Agreement or (ii) for interest rate setting purposes
only, on the date which is two Business Days prior to the commencement of an
Interest Period (or such other number of days as shall be reasonably deemed
necessary by Agent, for purposes of this Agreement). Alternative Currency
amounts of Advances or Letters of Credit made, issued, carried or expressed in
Dollars (to the extent used herein) shall be determined by Agent in a manner
consistent herewith.

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

                                       11
<PAGE>   22

         "Domestic Advance" shall mean any Advance other than a
Eurocurrency-based Advance or any other Advance denominated in an Alternative
Currency.

         "Domestic Guaranty" shall mean that certain guaranty of all
Indebtedness outstanding from the Company and the Permitted Borrowers hereunder,
executed and delivered (or to be executed and delivered) by each of the
Significant Domestic Subsidiaries (whether by execution thereof, or by execution
of the Joinder Agreement attached as "Exhibit A" to the form of such Guaranty),
to the Agent, on behalf of the Banks, in the form annexed hereto as Exhibit J-2,
as amended from time to time.

         "Domestic Subsidiaries" shall mean those Subsidiaries of the Company
incorporated under the laws of the United States of America, or any state
thereof.

         "Effective Date" shall mean the date on which the conditions precedent
to the effectiveness of this Agreement set forth in Sections 5.1 through 5.9
shall have been satisfied, amended or waived.

         "EMU" shall mean Economic and Monetary Union as contemplated in the
Treaty on European Union.

         "EMU Legislation" shall mean legislative measures of the European
Council (including European Council regulations) for the introduction of,
changeover to or operation of a single or unified European currency (whether
known as the euro or otherwise), being in part the implementation of the third
stage of EMU.

         "Equity Offering" shall mean the issuance and sale for cash, on or
after the Effective Date by Company or any of its Subsidiaries of additional
capital stock or other equity interests, other than upon the exercise of
employee and dealer stock options pursuant to stock option plans maintained or
offered by the Company or its Subsidiaries in the ordinary course of business
and not in anticipation of any sale of capital stock or equity interests to the
general public.

         "Equity Offering Adjustment" shall mean that amount to be added to the
minimum Consolidated Tangible Net Worth required to be maintained under Section
7.7 hereof consisting of an amount equal to one hundred percent (100%) of each
Equity Offering conducted by the Company or any of its subsidiaries, net of
related costs of issuance payable to third parties, on and after July 1, 1998,
on a cumulative basis.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
as amended, or any successor act or code, and the regulations in effect from
time to time thereunder.

         "ERISA Affiliate" shall mean any trade or business (whether or not
incorporated) which is under common control with the Company within the meaning
of Section 4001 of ERISA or is part of

                                       12
<PAGE>   23

a group which includes the Company and would be treated as a single employer
under Section 414 of the Internal Revenue Code, and any Domestic Subsidiary.

         "Euro" or "Euro Unit" shall mean the currency unit of the euro as
defined in the EMU Legislation.

         "Eurocurrency-based Advance" shall mean any Advance (including a Swing
Line Advance) which bears interest at the Eurocurrency-based Rate.

         "Eurocurrency-based Rate" shall mean a per annum interest rate which is
equal to the sum of (a) the Applicable Margin (subject, if applicable, to
adjustment under Section 11.11 hereof), plus

                     (b)(i) in the case of any Eurocurrency-based Advance other
         than an Advance of C$ to CAC Canada described in clause (b)(ii) below,
         the quotient of:

                     (A)    the per annum interest rate at which deposits in the
                            relevant eurocurrency are offered to Agent's
                            Eurocurrency Lending Office by other prime banks in
                            the relevant eurocurrency market in an amount
                            comparable to the relevant Eurocurrency-based
                            Advance and for a period equal to the relevant
                            Eurocurrency-Interest Period at approximately 11:00
                            a.m. Detroit time two (2) Business Days (or, in the
                            case of a Eurocurrency-based Advance in Euros, on
                            such other date as is customary in the relevant
                            offshore interbank market) prior to the first day of
                            such Eurocurrency-Interest Period, divided by

                     (B)    a percentage equal to 100% minus the maximum rate on
                            such date at which Agent is required to maintain
                            reserves on `eurocurrency liabilities' as defined in
                            and pursuant to Regulation D of the Board of
                            Governors of the Federal Reserve System or, if such
                            regulation or definition is modified, and as long as
                            Agent is required to maintain reserves against a
                            category of liabilities which includes eurocurrency
                            deposits or includes a category of assets which
                            includes eurocurrency loans, the rate at which such
                            reserves are required to be maintained on such
                            category,

         such sum to be rounded upward, if necessary, to the nearest whole
         multiple of 1/16th of 1%; or

         (b)(ii) in the case of any Advances of C$ to CAC Canada, the greater of
the Eurocurrency-based Rate determined in the manner set forth in clause (A)
above and the Canadian BA Rate.

                                       13
<PAGE>   24

         "Eurocurrency-Interest Period" shall mean, (a) for Swing Line Advances
carried at the Eurocurrency-based Rate, an interest period of seven days, one
month (or any lesser number of days agreed to in advance by Company or a
Permitted Borrower, Agent and the Swing Line Bank), (b) for Eurocurrency-based
Advances of C$ to CAC Canada, a Canadian BA Rate Period and (c) for all other
Eurocurrency-based Advances, an interest period of one, two, three or six months
(or any lesser or greater number of days agreed to in advance by Agent and the
Banks), in each case as selected by Company or such Permitted Borrower, as
applicable, for a Eurocurrency-based Advance pursuant to Section 2.3, 2.5, or
4.4 hereof, as the case may be.

         "Eurocurrency Lending Office" shall mean, (a) with respect to the
Agent, Agent's office located at its Grand Caymans Branch or such other branch
of Agent, domestic or foreign, as it may hereafter designate as its Eurocurrency
Lending Office by notice to Company, the Permitted Borrowers and the Banks and
(b) as to each of the Banks, its office, branch or affiliate located at its
address set forth on the signature pages hereof (or identified thereon as its
Eurocurrency Lending Office), or at such other office, branch or affiliate of
such Bank as it may hereafter designate as its Eurocurrency Lending Office by
notice to Company and Agent.

         "Event of Default" shall mean any of the events specified in Section
9.1 hereof.

         "Existing Letter of Credit" shall mean a letter of credit issued under
the Prior Credit Agreement which is outstanding on the effective date hereof.

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

         "Fees" shall mean the Agent's Fees, the Revolving Credit Facility Fee,
the Utilization Fee and the Letter of Credit Fees.

         "Fitch" shall mean Fitch Investor Services, Inc. or its successors.

         "Fixed Charge Coverage Ratio" shall mean, as of any applicable date of
determination, the ratio of (a) Consolidated Income Available for Fixed Charges
for the period of four (4) consecutive fiscal quarters of the Company most
recently ended at such time to (b) Consolidated Fixed Charges for such period.

         "Floor Plan Receivables" shall mean, as of any applicable date of
determination, the aggregate amount outstanding from Dealers pursuant to
financing extended to such Dealers by

                                       14
<PAGE>   25

Company or any of its Subsidiaries for used motor vehicle inventories, such
financing to be secured by the related motor vehicle inventories and any future
cash collections owed by Company or its Subsidiaries to the Dealer under the
applicable Dealer Agreement in respect of outstanding Advances to Dealers (and
the related Installment Contracts) or Leased Vehicles (and the related Leases)

         "Foreign Guaranty" shall mean that certain guaranty under the Prior
Credit Agreement of all Indebtedness outstanding from the Permitted Borrowers
hereunder, executed and delivered (or to be executed and delivered by joinder)
by each of the Significant Foreign Subsidiaries, as amended from time to time.

         "Foreign Subsidiaries" shall mean all of the Company's Subsidiaries
other than its Domestic Subsidiaries.

         "Funded Debt" shall mean, with respect to any Person (as of any
applicable date of determination), all Debt of a Person which matures, or which
at the election of such Person may mature, more than one (1) year after the date
as of which such computation was made, determined as of such date according to
GAAP.

         "Funding Conditions" shall mean those conditions required to be
satisfied prior to or concurrently with the funding of any Future Debt, as
follows:

         (a)         within a period of one hundred eighty (180) days prior to
                     the date any such Debt is incurred, Company shall have
                     provided to the Agent and the Banks a Consolidated plan and
                     financial projections meeting the requirements therefor as
                     set forth in Section 7.3(h) of this Agreement;

         (b)         both immediately before and immediately after such
                     additional Debt is incurred, no Default or Event of Default
                     (whether or not related to such additional Debt, and taking
                     into account the incurring of such additional Debt) has
                     occurred and is continuing;

         (c)         if such additional Debt shall be issued pursuant to loan
                     documents containing covenants which are more restrictive
                     than the covenants contained in this Agreement, Company
                     shall, upon the written request of the Majority Banks,
                     enter into amendments to this Agreement to extend the
                     benefit of such covenants to the Banks; and

         (d)         concurrently with the incurring of such additional Debt,
                     (i) the proceeds of such Debt, net of third party expenses
                     incurred by the Company in connection with the issuance of
                     such Debt, shall be applied to reduce the principal balance
                     outstanding under the Senior Debt or the Future Debt or
                     (ii) the principal balance outstanding under the Revolving
                     Credit (to the extent then outstanding, and including the

                                       15
<PAGE>   26

                     aggregate amount of drawings made under any Letter of
                     Credit and the aggregate amount of drawings made under any
                     Letter of Credit for which the Agent has not received full
                     payment) shall be reduced by the amount of Debt so
                     incurred, net of third party expenses incurred by Company
                     in connection with the issuance of such Debt, subject to
                     the right to reborrow in accordance with this Agreement;
                     provided, however, that to the extent that, on the date any
                     reduction of the principal balance outstanding under the
                     Revolving Credit shall be required under this clause (d),
                     the Indebtedness under the Revolving Credit is being
                     carried, in whole or in part, at the Eurocurrency-based
                     Rate and no Default or Event of Default has occurred and is
                     continuing, the Company may, after prepaying that portion
                     of the Indebtedness then carried at the Prime-based Rate,
                     deposit the amount of such required principal reductions in
                     a cash collateral account to be held by the Agent, for and
                     on behalf of the Banks (which shall be an interest-bearing
                     account), on such terms and conditions as are reasonably
                     acceptable to Agent and the Majority Banks and, subject to
                     the terms and conditions of such cash collateral account,
                     sums on deposit therein shall be applied (until exhausted)
                     to reduce the principal balance of the Revolving Credit on
                     the last day of each Interest Period attributable to the
                     applicable Eurocurrency-based Advances of the Revolving
                     Credit (subject to the right to reborrow, as aforesaid).

         "Future Debt" shall mean (i) Debt evidenced by Medium Term Notes and
(ii) Debt evidenced by Long Term Notes; provided that the aggregate principal
amount of all such Debt incurred from and after the date hereof shall not exceed
Three Hundred Million Dollars ($300,000,000); and provided further that, at the
time any such Debt is incurred, the Funding Conditions have been satisfied.

         For the purposes of this definition of "Future Debt",

                     "(x) `Long Term Notes' shall mean unsecured or, subject to
         the terms hereof, secured promissory notes to be issued by the Company
         (other than Debt evidenced by Medium Term Notes) issued as part of a
         private placement or carrying a public debt rating by a Rating Agency
         and which Debt shall have a term extending at least beyond the
         Revolving Credit Maturity Date then in effect, with an amortization
         schedule not greater than level amortization to maturity (but with no
         principal payments required for a period of at least 24 months) and
         with no call option or other provision for mandatory early repayment
         except for acceleration on default or following a change in control;
         and

                     "(y) `Medium Term Notes' shall mean unsecured or, subject
         to the terms hereof, secured promissory notes to be issued by the
         Company pursuant to the registration statement to be filed with the
         Securities and Exchange Commission and carrying a public debt rating by
         a Rating Agency, with maturities of not less than two (2) or more than
         ten (10) years from the date of issuance, with amortization schedules
         not greater than level amortization to

                                       16
<PAGE>   27

         maturity and with no call option or other provision for mandatory early
         repayment except for acceleration on default or following a change in
         control; provided, however, that notes in an aggregate principal amount
         of up to Fifty Million Dollars ($50,000,000) may be issued with
         maturities less than two (2) years or greater than ten (10) years
         and/or with a call option or other provision for mandatory early
         repayment, so long as such notes otherwise comply with the other
         limitations contained herein.

         "Future Debt Documents" shall mean the promissory note(s),
guaranty(ies), agreement(s) or other documents, instruments and certificates
executed and delivered, subject to the terms of this Agreement, to evidence or
secure (or otherwise relating to) Future Debt, as the same may be amended from
time to time and any and all other documents executed in exchange therefor or
replacement or renewal thereof.

         "GAAP" shall mean generally accepted accounting principles in the
United States of America as in effect on the date hereof, consistently applied.

         "Gross Advances to Dealers" shall mean, as of any applicable date of
determination, the Dollar Amount of Advances to Dealers, plus any reserves
established by the Company as an allowance for credit losses related to such
advances not expected to be recovered, plus Charged-off Advances (as defined in
the definition of Advances to Dealers) to the extent such Charged-off Advances
exceed the amount of such reserves.

         "Gross Current Leased Vehicles" shall mean, as of any applicable date
of determination, the aggregate amount of Gross Leased Vehicles, less the amount
of Leased Vehicles in respect of which the underlying Leases are classified as
being on "non-accrual" in the financial statements of the Company and its
Subsidiaries in accordance with GAAP.

         "Gross Current Installment Contract Receivables" shall mean, as of any
applicable date of determination, the aggregate amount of Gross Installment
Contract Receivables, less the amount of such receivables which are classified
as being on "non-accrual" in the financial statements of the Company and its
Subsidiaries in accordance with GAAP.

         "Gross Dealer Holdbacks" shall mean the aggregate amount, as of any
applicable date of determination, of dealer holdbacks under dealer agreements
relating to installment contracts utilized in arriving at Dealer holdbacks,
net on the Consolidated balance sheet of the Company and its Subsidiaries, as
disclosed in the footnotes thereto; provided that Gross Dealer Holdbacks shall
not include the amount of dealer holdbacks attributable to retail installment
contracts which are not at such time "Installment Contracts" due to the proviso
in the definition of such term in this Agreement.

         "Gross Leased Vehicles " shall mean, as of any applicable date of
determination, the Dollar Amount of Leased Vehicles, plus any reserves
established by the Company as an allowance for

                                       17
<PAGE>   28

credit losses related to such Leased Vehicles not expected to be recovered, plus
Charged-Off Advances (as defined in the definition of Leased Vehicles) to the
extent such Charged-Off Advances exceed the amount of such reserves; provided
that Gross Leased Vehicles shall not include the dollar amount of Leased
Vehicles attributable to leases which are not at such time "Leases" due to the
proviso in the definition of such term in this Agreement.

         "Gross Installment Contract Receivables" shall mean, as of any
applicable date of determination, the aggregate amount of Installment Contract
receivables utilized in arriving at  installment contract receivables, net on
the Consolidated balance sheet of the Company and its Subsidiaries, as
determined in the footnotes thereto; provided that Gross Installment Contract
Receivables shall not include receivables attributable to retail installment
contracts which are not at such time "Installment Contracts" due to the proviso
in the definition of such term in this Agreement.

         "Guaranties" shall mean the Company Guaranty, the Domestic Guaranty and
the Foreign Guaranty.

         "Guarantor(s)" shall mean each Significant Subsidiary which is required
by the Banks to guarantee the obligations of the Company and/or the Permitted
Borrowers hereunder and under the other Loan Documents.

         "Hazardous Material" shall mean and include any hazardous, toxic or
dangerous waste, substance or material defined as such in (or for purposes of)
the Hazardous Material Laws.

         "Hazardous Material Law(s)" shall mean all laws, codes, ordinances,
rules, regulations, orders, decrees and directives issued by any federal, state,
local, foreign or other governmental or quasi-governmental authority or body (or
any agency, instrumentality or political subdivision thereof) pertaining to
Hazardous Material on or about the Material Property or any portion thereof
including, without limitation, those relating to soil, surface, subsurface
ground water conditions and the condition of the ambient air; any so-called
"superfund" or "superlien" law; and any other federal, state, foreign or local
statute, law, ordinance, code, rule, regulation, order or decree regulating,
relating to, or imposing liability or standards of conduct concerning, any
hazardous, toxic or dangerous waste, substance or material, as now or at any
time hereafter in effect. For the purposes of this definition "Material
Property" shall mean any property, whether personal or real, owned, leased or
otherwise used by the Company or any of the Subsidiaries which is material to
the operations of the Company and the Subsidiaries, taken as a whole.

         "Hereof", "hereto", "hereunder" and similar terms shall refer to this
Agreement in its entirety and not to any particular paragraph or provision of
this Agreement.

         "Indebtedness" shall mean all indebtedness and liabilities, whether
direct or indirect, absolute or contingent, owing by Company or any of the
Permitted Borrowers to the Banks (or any of them)

                                       18
<PAGE>   29

or to the Agent, in any manner and at any time, under this Agreement or the
other Loan Documents, whether evidenced by the Notes, the Guaranties, Letter of
Credit Agreements or otherwise, due or hereafter to become due, now owing or
that may hereafter be incurred by the Company, or any of the Permitted Borrowers
to, or acquired by, the Banks or by Agent, and any judgments that may hereafter
be rendered on such indebtedness or any part thereof, with interest according to
the rates and terms specified, or as provided by law, and any and all
consolidations, amendments, renewals, replacements or extensions of any of the
foregoing.

         "Installment Contract(s)" shall mean retail installment contracts for
the sale of new or used motor vehicles assigned outright by Dealers to Company
or a Subsidiary of Company or written by Dealers in the name of the Company or a
Subsidiary of the Company (and funded by Company or such Subsidiary) or assigned
by Dealers to Company or a Subsidiary of Company, as nominee for the Dealer, for
administration, servicing, and collection, in each case pursuant to an
applicable Dealer Agreement; provided, however, that to the extent the Company
or any Subsidiary transfers or encumbers its interest in any Installment
Contracts (or any Advances to Dealers related thereto) pursuant to a Permitted
Securitization, such Installment Contracts shall, from and after the date of
such transfer or encumbrance, cease to be considered Installment Contracts under
this Agreement (reducing the amount of Advances to Dealers by the outstanding
amount of such advances, if any, attributable to such Installment Contracts)
unless and until such installment contracts are reassigned to the Company or a
Subsidiary of the Company or such encumbrances are discharged.

         "Intercreditor Agreement" shall mean that certain Intercreditor
Agreement executed and delivered as of December 15, 1998 by and among the Banks,
the Noteholders and the Agent, as Collateral Agent thereunder, and acknowledged
and accepted by the Company and the Permitted Borrowers, as amended from time to
time.

         "Interest Period" shall mean

                     (a) with respect to a Eurocurrency-based Advance, a
         Eurocurrency-Interest Period commencing on the day a Eurocurrency-based
         Advance is made, or on the effective date of an election of the
         Eurocurrency-based Rate made under Section 2.3 or hereof, as the case
         may be, and

                     (b) with respect to a Swing Line Advance, a period of one
         (1) to thirty (30) days agreed to in advance by Company and the Swing
         Line Bank as selected by Company pursuant to Section 2.5(c),

provided that (i) any Interest Period which would otherwise end on a day which
is not a Business Day shall end on the next succeeding Business Day, except that
as to a Eurocurrency-Interest Period, if the next succeeding Business Day falls
in another calendar month, such Eurocurrency-Interest Period shall end on the
next preceding Business Day, and (ii) when a Eurocurrency-Interest Period begins
on a day which has no numerically corresponding day in the calendar month during
which

                                       19
<PAGE>   30

such Eurocurrency-Interest Period is to end, it shall end on the last Business
Day of such calendar month, and (iii) no Interest Period shall extend beyond the
maturity date set forth in the Note to which such Interest Period is to apply.

         "Internal Revenue Code" shall mean the Internal Revenue Code of 1986,
as amended from time to time, and the regulations promulgated thereunder.

         "Investment" shall mean, in respect of any Person, any loan, advance,
extension of credit, guaranty or contribution of capital or any investment in,
or purchase or other acquisition of, stocks, notes, debentures or other
securities of such Person.

         "Irish Sublimit" shall mean, as of any applicable date of
determination, that amount equal to the lesser of

                     (a) five percent (5%) of Company's Consolidated Tangible
         Net Worth, determined as of the end of each fiscal quarter based upon
         the financial statements required to be delivered under Section 7.3(b)
         or 7.3(c) hereof, as the case may be, or (subject to the terms hereof)
         determined on a monthly basis at the request of the Company based on
         monthly financial statements to be delivered pursuant to Section
         2.14(b) hereof, (and giving effect to any changes in net worth shown in
         such financial statements on the required date of delivery thereof);
         and

                     (b) the Aggregate Sublimit minus the sum of the aggregate
         principal amount of Advances outstanding to the Permitted Borrowers,
         including CAC Ireland, (after giving effect to any such Advances being
         requested by any Permitted Borrower, including CAC Ireland, on such
         date, using the Current Dollar Equivalent of any such Advances
         outstanding or requested in any Alternative Currency, determined
         pursuant to the terms hereof as of the date of such requested Advance),
         plus the aggregate undrawn portion of any Letters of Credit issued for
         the account of the Permitted Borrowers (including CAC Ireland) which
         shall be outstanding as of the date of such requested Advance (based on
         the Dollar Amount of the undrawn portion of any such Letters of Credit
         denominated in Dollars and the Current Dollar Equivalent of the undrawn
         portion of any such Letters of Credit denominated in any Alternative
         Currency), the aggregate face amount of Letters of Credit requested but
         not yet issued (determined as aforesaid) and the aggregate amount of
         all drawings for the account of such Permitted Borrowers made under any
         Letter of Credit for which the Agent has not received full
         reimbursement from such Permitted Borrowers (using the Current Dollar
         Equivalent thereof for any such Letters of Credit denominated in any
         Alternative Currency).

         "Issuing Office" shall mean Agent's office located at One Detroit
Center, 500 Woodward Avenue, Detroit, Michigan 48275 or such other office as
Agent shall designate as its Issuing Office.

         "ITA" shall mean the Income Tax Act (Canada) as the same may, from time
to time be in effect.

                                       20
<PAGE>   31

         "Joinder Agreement (Guaranty)" shall mean a joinder agreement in the
form attached as "Exhibit A" to the form of the Domestic Guaranty and to the
form of the Foreign Guaranty, to be executed and delivered by any Person
required to be a Guarantor pursuant to Section 7.22 of this Agreement.

         "Leased Vehicles" shall mean, as of any applicable date of
determination, the Dollar Amount of advances in respect of Leases, as such
amount would appear in the footnotes to the financial statements of the Company
and its Subsidiaries prepared in accordance with GAAP or, if specifically
identified, elsewhere in such financial statements, net of depreciation on the
motor vehicles which are covered by Leases with respect to which such Leased
Vehicles are attributable (and if such amount is not shown net of such reserves,
then net of any reserves established by the Company as an Allowance for Credit
Losses related to such advances not expected to be recovered), provided that
Leased Vehicles shall not include (a) the amount of any such advances
attributable to any Leases transferred or encumbered pursuant to a Permitted
Securitization (whether or not attributable to the Company under GAAP)unless and
until such advances (and the related Leases) are reassigned to the Company or a
Subsidiary of the Company or such encumbrances are discharged or (b) Charged-Off
Advances, to the extent that such Charged-Off Advances (i) exceed the portion of
the Company's Allowance for Credit Losses related to reserves against such
advances not expected to be recovered, as such allowance would appear in the
footnotes to the financial statements of the Company and its Subsidiaries
prepared in accordance with GAAP at such time or if specifically identified,
elsewhere in such financial statements and (ii) have not already been eliminated
in the determination of Leased Vehicles. For purposes of this definition,
"Charged-off Advances" shall mean those Leased Vehicles which the Company or any
of its Subsidiaries has determined, based on the application of a static pool or
comparable analysis or otherwise, are completely or partially impaired, to the
extent of such impairment.

         "Lease(s)" shall mean the retail agreements for the lease of motor
vehicles assigned outright by Dealers to Company or a Subsidiary of Company or
written by a Dealer in the name of the Company or a Subsidiary of Company (and
funded by Company or such Subsidiary) or assigned by Dealers to Company or a
Subsidiary of Company, as nominee for the Dealer, for administration, servicing
and collection, in each case pursuant to an applicable Dealer Agreement;
provided, however, that to the extent the Company or any Subsidiary transfers or
encumbers its interest in any Leases pursuant to a Permitted Securitization,
such Leases shall, from and after the date of such transfer or encumbrance,
cease to be considered Leases under this Agreement (reducing the amount of
Leased Vehicles by the outstanding amount of Leased Vehicles attributable to
such Leases) unless and until such Leases are reassigned to Company or a
Subsidiary of the Company or such encumbrances have been discharged.

         "Lenders" shall mean the Banks, the Noteholders and the Future Debt
Holders (as defined in the Intercreditor Agreement).

                                       21
<PAGE>   32

         "Letter of Credit Agreement" shall mean, in respect of each Letter of
Credit, the application and related documentation satisfactory to the Agent of
an Account Party or Account Parties requesting Agent to issue such Letter of
Credit, as amended from time to time.

         "Letter of Credit Fees" shall mean the fees payable to Agent for the
accounts of the Banks in connection with Letters of Credit pursuant to Section
3.4 hereof.

         "Letter of Credit Maximum Amount" shall mean as of any date of
determination the lesser of: (a) Ten Million Dollars ($10,000,000); or (b) the
Revolving Credit Maximum Amount as of such date, minus the aggregate principal
amount of Advances outstanding as of such date under the Revolving Credit Notes
and the Swing Line Notes.

         "Letter of Credit Obligation(s)" shall mean the obligation of an
Account Party or Account Parties under this Agreement and each Letter of Credit
Agreement to reimburse the Agent for each payment made by the Agent under the
Letter of Credit issued pursuant to such Letter of Credit Agreement, together
with all other sums, fees, charges and amounts which may be owing to the Agent
under such Letter of Credit Agreement.

         "Letter of Credit Payment" shall mean any amount paid or required to be
paid by the Agent in its capacity hereunder as issuer of a Letter of Credit as a
result of a draft or other demand for payment under any Letter of Credit.

         "Letter(s) of Credit" shall mean any standby or documentary letters of
credit issued by Agent at the request of or for the account of an Account Party
or Account Parties pursuant to Article 3A hereof, including without limitation
any Existing Letters of Credit.

         "Lien" shall mean any pledge, assignment, hypothecation, mortgage,
security interest, deposit arrangement, option, trust receipt, conditional sale
or title retaining contract, sale and leaseback transaction, or any other type
of lien, charge or encumbrance, whether based on common law, statute or
contract; provided that the term "Lien" shall not include any negative pledge
clauses in agreements relating to the borrowing of money or the obligation of
Company or any of its Subsidiaries (a) to remit monies held by it in connection
with dealer holdbacks (including, without limitation, with respect to Leases or
Installment Contracts), claims or refunds under insurance policies or claims or
refunds under service contracts or (b) to make deposits in trust or otherwise as
required under re-insurance agreements and pursuant to state regulatory
requirements, unless the Company or any of its Subsidiaries, as the case may be,
has encumbered its interest in such monies or deposits or in other property of
the Company to secure such obligations.

         "Loan Documents" shall mean, collectively, this Agreement, the Notes,
the Guaranties, the Letter of Credit Agreements, the Collateral Documents and
any other documents, instruments or agreements executed pursuant to or in
connection with any such document, or this Agreement, as such documents may be
amended, renewed, replaced or extended from time to time.

                                       22
<PAGE>   33

         "Majority Banks" shall mean at any time Banks holding 66-2/3% of the
aggregate principal amount of the Indebtedness then outstanding under the Notes
(provided that, for purposes of determining Majority Banks hereunder,
Indebtedness outstanding under the Swing Line Notes shall be allocated among the
Banks based on their respective Percentages of the Revolving Credit), or, if no
Indebtedness is then outstanding, Banks holding 66-2/3% of the Percentages.

         "Moody's" shall mean Moody's Investors Service, Inc., and its
successors.

         "Multiemployer Plan" shall mean any Pension Plan which is a
multiemployer plan as defined in Section 4001(a)(3) of ERISA.

         "National Currency Unit" shall mean a fraction or multiple of one Euro
Unit expressed in units of the former national currency of a Participating
Member State.

         "Net Dealer Holdbacks" shall mean, as of any applicable date of
determination, (a) Gross Dealer Holdbacks minus (b) Advances to Dealers.

         "Net Installment Contract Receivables" shall mean, as of any date of
determination thereof,  Gross Installment Contract Receivables minus  Unearned
Finance Charges minus Allowances for Credit Losses related to Installment
Contracts (but excluding any such allowances which are related to Leases).

         "Net Leased Vehicle Dealer Holdbacks" shall mean, as of any date of
determination thereof, with respect to Dealer Agreements relating to Leases,
amounts due to Dealers at such time from collections of Leased Vehicles by the
Company or any Subsidiary (other than with respect to Leases which have been
transferred or encumbered pursuant to a Permitted Securitization and (x) have
not been reassigned to the Company or a Subsidiary of the Company or (y) with
respect to which such encumbrances have not been discharged) pursuant to the
applicable Dealer Agreements.

         "New Bank" is defined in clause (b) of Section 2.18.

         "New Bank Addendum" shall mean an addendum, substantially in the form
of Exhibit M hereto, to be executed and delivered by each Bank becoming a party
to this Agreement pursuant to Section 2.18 hereof.

         "Notes" shall mean the Term Notes, the Revolving Credit Notes or the
Swing Line Notes, or any or all of the Term Notes, the Revolving Credit Notes,
and the Swing Line Notes as the context indicates, and in the absence of such
indication, all such notes.

                                       23
<PAGE>   34

         "Notes Receivable" shall mean, as of any applicable date of
determination, the aggregate amount outstanding under promissory notes issued by
Dealers to Company or its Subsidiaries to evidence working capital loans by
Company or any of its Subsidiaries to Dealers.

         "Operating Lease" shall mean any lease other than a Capital Lease.

         "Operating Rental" shall mean all rental payments that the Company or
any of its Subsidiaries, as lessee, is required to make under the terms of any
Operating Lease.

         "Outright Dealer Agreement(s)" shall mean Dealer Agreements referred to
in clause (ii) of the definition of Dealer Agreements.

         "Participating Member State" shall mean such country so described in
any EMU Legislation.

         "PBGC" shall mean the Pension Benefit Guaranty Corporation under ERISA,
or any successor corporation.

         "Pension Plan(s)" shall mean all employee pension benefit plans of
Company, any ERISA Affiliate or any Permitted Borrower, as defined in Section
3(2) of ERISA.

         "Percentage" shall mean, with respect to any Bank, its percentage
share, as set forth on Exhibit D hereto, of the Letters of Credit, the Term
Loan, and/or the Revolving Credit, as the context indicates, as such Exhibit may
be revised from time to time by Agent in accordance with Section 13.8(d) hereof.

         "Permitted Acquisition" shall mean any acquisition by the Company or
any of its Subsidiaries (other than any Special Purpose Subsidiary) of assets,
businesses or business interests or shares of stock or other ownership interests
of or in any Person conducted in accordance with the following requirements:

         (a)         not less than twenty (20) nor more than ninety (90) days
                     prior to the commencement of each such proposed
                     acquisition, the Company provides written notice thereof to
                     Agent (with drafts of all material documents pertaining to
                     such proposed acquisition to be furnished to Agent within
                     not less than twenty (20) days prior to such proposed
                     acquisition);

         (b)         on the date of any such acquisition, all necessary or
                     appropriate governmental, quasi-governmental, agency,
                     regulatory or similar approvals of applicable jurisdictions
                     (or the respective agencies, instrumentalities or political
                     subdivisions, as applicable, of such jurisdictions) and all
                     necessary or appropriate non-governmental and other
                     third-party approvals which, in each case, are material to
                     such acquisition have been obtained and are in effect, and
                     the Company and its

                                       24
<PAGE>   35

                     Subsidiaries are in full compliance therewith, and all
                     necessary or appropriate declarations, registrations or
                     other filings with any court, governmental or regulatory
                     authority, securities exchange or any other person have
                     been made;

         (c)         the aggregate value of all of such acquisitions, including
                     the value of any proposed new acquisition, conducted while
                     this Agreement remains in effect as Permitted Acquisitions
                     (but excluding any acquisition conducted with the specific
                     written approval of the Majority Banks, and not as a
                     Permitted Acquisition hereunder) computed on the basis of
                     total acquisition consideration paid or incurred, or to be
                     paid or incurred, by the Company or its Subsidiaries with
                     respect thereto, including all indebtedness which is
                     assumed or to which such assets, businesses or business or
                     ownership interests or shares, or any Person so acquired,
                     is subject, shall not exceed Ten Million Dollars
                     ($10,000,000) (or the Alternative Currency equivalent
                     thereof, if applicable), determined as of the date of such
                     acquisition;

         (d)         within thirty (30) days after any such acquisition has been
                     completed the Company shall deliver to the Agent executed
                     copies of all material documents pertaining to such
                     acquisition, and the Company, its Subsidiaries and any of
                     the corporate entities involved in such acquisition shall
                     execute or cause to be executed, and provide or cause to be
                     provided to Agent, for the Banks, such documents and
                     instruments (including without limitation, the Guaranties
                     as required by Section 7.22 hereof, and opinions of
                     counsel, amendments, acknowledgments, consents and evidence
                     of approvals or filings) as reasonably requested by Agent,
                     if any; and

         (e)         both immediately before and after such acquisition, no
                     Default or Event of Default (whether or not related to such
                     acquisition), has occurred and is continuing.

         "Permitted Borrower" shall mean CAC UK, CAC Canada and/or CAC Ireland.

         "Permitted CAC UK Debt" shall mean additional Debt of CAC UK issued as
part of any short term, working capital or overdraft loan facility denominated
in an Alternative Currency in an aggregate amount at any time outstanding
(determined on the date any such Debt is incurred) not to exceed the greater of
(a) twelve and one-half percent (12.5%) of Consolidated Tangible Net Worth or
(b) the equivalent of Ten Million Dollars ($10,000,000) in such Alternative
Currency, less the aggregate amount at any time outstanding of overdraft lines
of credit or similar credit facilities in the name of CAC UK permitted under
Section 8.5(d) hereof; provided that such Debt (i) is unsecured, except to
extent of any Lien granted by CAC UK which is permitted under Section 8.6(d)
hereof, (ii) is not guaranteed or otherwise supported by Company or any of its
other Subsidiaries, and (iii) both immediately before and immediately after such
additional Debt is incurred, no Default or Event of Default (whether or not
related to such additional Debt, and taking into account the incurring of such
additional Debt) has occurred and is continuing.

                                       25
<PAGE>   36

         "Permitted Currencies" shall mean Dollars or any Alternative Currency.

         "Permitted Guaranties" shall mean (i) any guaranties or other support
provided by the Company, for the benefit of the Permitted Borrowers, covering
any overdraft lines of credit or similar credit arrangements maintained by the
Permitted Borrowers or Arlington Investment Company under Section 8.5(d) hereof,
(ii) any guaranties provided by a Significant Subsidiary of the Company of the
Debt outstanding to the Noteholders or the Future Debt Holders, provided that
concurrently with the giving of any such guaranty, such Subsidiary shall enter
into a Guaranty on substantially similar terms and providing an equal and
ratable benefit to the Banks or (iii) any agreement or other undertaking by the
Company, as servicer of the Installment Contracts or Leases covered by a
Permitted Securitization, to advance funds to cover the interest component of
obligations issued as part of such securitization and payable from collections
on such Installment Contracts or Leases (such advances to be repayable to
Company on a priority basis from such collections), provided that the aggregate
amount of such advances under this clause (iii) at any time outstanding shall
not exceed $1,500,000.

         "Permitted Investments" shall mean:

         (a)         Investments in direct obligations of, or obligations
                     guarantied by, the United States of America or any agency
                     of the United States of America the obligations of which
                     agency carry the full faith and credit of the United States
                     of America, provided that such obligations (other than
                     Investments by CAC Life in such obligations made to match
                     liabilities incurred in the ordinary course of business)
                     mature within one (1) year from the date of acquisition
                     thereof;

         (b)         Investments in any obligation of any state or municipality
                     thereof that at the time of acquisition thereof have an
                     assigned rating of "A" or higher by S&P (or an equivalent
                     or higher rating by another credit rating agency of
                     recognized national standing in the United States of
                     America), provided that such obligations (other than
                     Investments by CAC Life in such obligations made to match
                     liabilities incurred in the ordinary course of business)
                     mature within one (1) year from the date of acquisition
                     thereof;

         (c)         Investments in negotiable certificates of deposit issued by
                     commercial banks organized under the laws of the United
                     States of America or any state thereof, having capital,
                     surplus and undivided profits aggregating at least Fifty
                     Million Dollars ($50,000,000) and the long-term unsecured
                     debt obligations of which are rated "A" or higher by S&P
                     (or an equivalent or higher rating by another credit rating
                     agency of recognized national standing in the United States
                     of America), provided that such certificates of deposit
                     (other than Investments by CAC Life in such certificates of
                     deposit made to match liabilities incurred in the ordinary
                     course of business) mature within one (1) year from the
                     date of acquisition thereof;

                                       26
<PAGE>   37

         (d)         Investments in corporate debt obligations of corporations
                     organized under the laws of the United States of America or
                     any state thereof that at the time of acquisition thereof
                     have an assigned rating of "A" or higher by S&P (or an
                     equivalent or higher rating by another credit rating agency
                     of recognized national standing in the United States of
                     America); and

         (e)         Investments in preferred stock of corporations organized
                     under the laws of the United States of America or any state
                     thereof that have an assigned rating of "A" or higher by
                     S&P (or an equivalent or higher rating by another credit
                     rating agency of recognized national standing in the United
                     States of America); and

         (f)         Investments by CAC UK in obligations similar in nature,
                     term and credit quality to those enumerated in paragraphs
                     (a) through (e) above except that the United Kingdom shall
                     be substituted for the United States of America in each
                     case.

         "Permitted Liens" shall mean, with respect to any Person:

         (a)         any Liens granted under or established by this Agreement or
                     the other Loan Documents;

         (b)         Liens for taxes not yet due and payable or which are being
                     contested in good faith by appropriate proceedings
                     diligently pursued, provided that such provision for the
                     payment of all such taxes known to such Person has been
                     made on the books of such Person as may be required by
                     GAAP;

         (c)         mechanics', materialmen's, banker's, carriers',
                     warehousemen's and similar Liens arising in the ordinary
                     course of business and securing obligations of such Person
                     that are not overdue for a period of more than 60 days or
                     are being contested in good faith by appropriate
                     proceedings diligently pursued, provided that in the case
                     of any such contest (i) any proceedings commenced for the
                     enforcement of such liens and encumbrances shall have been
                     duly suspended; and (ii) such provision for the payment of
                     such liens and encumbrances has been made on the books of
                     such Person as may be required by GAAP;

         (d)         Liens arising in connection with worker's compensation,
                     unemployment insurance, old age pensions (subject to the
                     applicable provisions of this Agreement) and social
                     security benefits which are not overdue or are being
                     contested in good faith by appropriate proceedings
                     diligently pursued, provided that in the case of any such
                     contest (i) any proceedings commenced for the enforcement
                     of such Liens shall have been duly suspended; and (ii) such
                     provision for the payment of such Liens has been made on
                     the books of such Person as may be required by GAAP;

                                       27
<PAGE>   38

         (e)         (i) Liens incurred in the ordinary course of business to
                     secure the performance of statutory obligations arising in
                     connection with progress payments or advance payments due
                     under contracts with the United States or any foreign
                     government or any agency thereof entered into in the
                     ordinary course of business and (ii) liens incurred or
                     deposits made in the ordinary course of business to secure
                     the performance of statutory obligations, bids, leases, fee
                     and expense arrangements with trustees and fiscal agents
                     and other similar obligations (exclusive of obligations
                     incurred in connection with the borrowing of money, any
                     lease-purchase arrangements or the payment of the deferred
                     purchase price of property), provided that full provision
                     for the payment of all such obligations set forth in
                     clauses (i) and (ii) has been made on the books of such
                     Person as may be required by GAAP;

         (f)         Liens in the nature of any minor imperfections of title,
                     including but not limited to easements, covenants,
                     rights-of-way or other similar restrictions, which, either
                     individually or in the aggregate, would not (i) materially
                     adversely affect the present or future use of the property
                     to which they relate, or (ii) have a material adverse
                     effect on the sale or lease of such property, or (iii)
                     render title thereto unmarketable;

         (g)         Liens (i) arising from judicial attachments and judgments,
                     (ii) securing appeal bonds or supersedeas bonds, and (iii)
                     arising in connection with court proceedings (including,
                     without limitation, surety bonds and letters of credit or
                     any other instrument serving a similar purpose), provided
                     that (1) the execution or other enforcement of such Liens
                     is effectively stayed, (2) the claims secured thereby are
                     being contested in good faith and by appropriate
                     proceedings, (3) adequate book reserves in accordance with
                     GAAP shall have been established and maintained and shall
                     exist with respect thereto, (4) such Liens do not in the
                     aggregate detract from the value of such property and (5)
                     the title of the Company or a Subsidiary, as the case may
                     be, to, and its right to use, such property, is not
                     materially adversely affected thereby; and
         (h)         those Liens of the Company or its Subsidiaries identified
                     in Schedule 8.6 hereto.

         "Permitted Merger(s)" shall mean any merger of (i) any Subsidiary
(including, without limitation, a Permitted Borrower or Guarantor, excluding any
Special Purpose Subsidiary) or any Person which is being acquired pursuant to a
Permitted Acquisition into Company or any Permitted Borrower or (ii) the merger
of any Subsidiary or any Person which is being acquired pursuant to a Permitted
Acquisition (other than a Permitted Borrower or Guarantor) into any other
Subsidiary (excluding any Special Purpose Subsidiary) or any Person which is
being acquired pursuant to a Permitted Acquisition, which, in each case,
satisfies and/or is conducted in accordance with the following requirements:

                                       28
<PAGE>   39

         (a)         not less than twenty (20) nor more than ninety (90) days
                     prior to the commencement of such proposed merger, Company
                     provides written notice thereof to Agent (with drafts of
                     all material documents pertaining to such proposed merger
                     to be furnished to Agent not less than twenty (20) days
                     prior to such proposed merger);

         (b)         immediately following and as the direct result of any such
                     merger, the surviving or successor entity has succeeded by
                     operation of applicable law (as confirmed by an opinion(s)
                     of counsel in form and substance satisfactory to the
                     Majority Banks) to all of the obligations of the
                     non-surviving entity under this Agreement and the other
                     Loan Documents, and to all of the property rights of such
                     non-surviving entity subject to the applicable Loan
                     Documents;

         (c)         concurrently with such proposed merger, the surviving
                     entity involved in such merger shall execute or cause to be
                     executed, and provide or cause to be provided to Agent, for
                     the Banks, such documents and instruments (including
                     without limitation opinions of counsel, amendments,
                     acknowledgments and consents), if any, as reasonably
                     requested by the Majority Banks; and

         (d)         both immediately before and immediately after such merger,
                     no Default or Event of Default (whether or not related to
                     such merger), has occurred and is continuing.

         "Permitted Prepayment" shall mean any prepayment of the Senior Debt or
Future Debt which is funded solely with the proceeds of (x) new cash equity in
the form of nonconvertible common shares, (y) Subordinated Debt, or (z)
substitute long term Debt which satisfies the following conditions:

         (a)         such Debt shall have a term extending at least beyond the
                     Revolving Credit Maturity Date then in effect, with an
                     amortization schedule not greater than level amortization
                     to maturity (but with no principal payments required for a
                     period of at least 24 months) and with no call option or
                     other provision for mandatory early repayment except for
                     acceleration on default or following a Change in Control;

         (b)         such Debt shall be unsecured, or, subject to the
                     Intercreditor Agreement, secured;

         (c)         both immediately before and immediately after such
                     additional Debt is incurred, no Default or Event of Default
                     (whether or not related to such additional Debt, and taking
                     into account the incurring of such additional Debt) has
                     occurred and is continuing; and

                                       29
<PAGE>   40

         (d)         if such additional Debt shall be issued pursuant to loan
                     documents containing covenants which are more restrictive
                     than the covenants contained in this Agreement, Company
                     shall, upon the written request of the Majority Banks,
                     enter into amendments to this Agreement to extend the
                     benefit of such covenants to the Banks,

in each case, issued concurrently with such prepayment.

         "Permitted Repurchase" shall mean any purchases by the Company of its
capital stock during the period commencing on the Effective Date and ending on
the Revolving Credit Maturity Date then in effect, in an aggregate amount for
all such purchases not to exceed $30,000,000; provided that at the time of any
such purchase no Default or Event of Default has occurred and is continuing or
would occur after giving effect thereto.

         "Permitted Securitization(s)" shall mean each transfer or encumbrance
(each a "disposition") of specific Advances to Dealers or Leased Vehicles funded
under Back-End Dealer Agreements (and any interest in or lien on the Installment
Contracts, Leases, motor vehicles or other rights relating thereto) or of
specific Installment Contracts or Leases (and any interest in or lien on motor
vehicles or other rights relating thereto) arising under Outright Dealer
Agreements, in each case by the Company or one or more OF its Subsidiaries to a
Special Purpose Subsidiary conducted in accordance with the following
requirements:

         (a)         Each disposition shall identify with reasonable certainty
                     the specific Advances to Dealers, Leased Vehicles,
                     Installment Contracts or Leases covered by such
                     disposition; and such Advances to Dealers or Leased
                     Vehicles (and the Installment Contracts, Leases, motor
                     vehicles or other rights relating thereto) and the
                     Installment Contracts and Leases shall have performance and
                     other characteristics so that the quality of such Advances
                     to Dealers, Leases Vehicles, Installment Contracts or
                     Leases, as the case may be, is comparable to, but not
                     materially better than, the overall quality of the
                     Company's Advances to Dealers, Leased Vehicles, Installment
                     Contracts or Leases, as applicable, as determined in good
                     faith by the Company in its reasonable discretion;

         (b)         (i) The disposition of Advances to Dealers, Leased
                     Vehicles, Installment Contracts or Leases will not result
                     in the aggregate principal amount of Debt at any time
                     outstanding, and (without duplication) of similar
                     securities at any time issued and outstanding (other than
                     subordinated securities issued to and held by the Company
                     or a Subsidiary), of any Special Purpose Subsidiary
                     pursuant to Permitted Securitizations before or after the
                     Effective Date exceeding $100,000,000, which amount may be
                     readvanced and reborrowed and (ii) the Company or the
                     Subsidiary disposing of Advances to Dealers, Leased
                     Vehicles, Installment Contracts or Leases to a Special
                     Purpose Subsidiary pursuant to such Permitted
                     Securitization shall itself actually receive (substantially
                     contemporaneously with such

                                       30
<PAGE>   41

                     disposition) cash from each disposition of such financial
                     assets in connection with any such Securitization
                     Transaction in an amount not less than Seventy- Five
                     Percent (75%) of the sum of (A) the amount of such Advances
                     to Dealers, (B) the amount of Net Installment Contract
                     Receivables in respect of Installment Contracts arising
                     under Outright Dealer Agreements, and (C) the amount of
                     Leased Vehicles, in each case determined on the date of
                     such Securitization Transaction;

         (c)         Each such disposition shall be without recourse (except to
                     the extent of normal and customary representations and
                     warranties given as of the date of each such disposition,
                     and not as continuing representations and warranties) and
                     otherwise on normal and customary terms and conditions for
                     comparable asset-based securitization transactions, which
                     may include Cleanup Call provisions;

         (d)         Concurrently with each such disposition, the aforesaid net
                     proceeds shall be applied to reduce the principal balance
                     outstanding under the Revolving Credit (to the extent then
                     outstanding, and including the aggregate amount of drawings
                     made under any Letter of Credit for which the Agent has not
                     received full payment) by the amount of such net proceeds,
                     subject to the right to reborrow in accordance with this
                     Agreement; provided, however, that to the extent that, on
                     the date any reduction of the principal balance outstanding
                     under the Revolving Credit shall be required under this
                     clause (d), the Indebtedness under the Revolving Credit is
                     being carried, in whole or in part, at the Euro
                     Currency-based Rate and no Default or Event of Default has
                     occurred and is continuing, the Company may, after
                     prepaying that portion of the Indebtedness then carried at
                     the Prime-based Rate, deposit the amount of such required
                     principal reductions in a cash collateral account to be
                     held by the Agent, for and on behalf of the Banks (which
                     shall be an interest-bearing account), on such terms and
                     conditions as are reasonably acceptable to Agent and the
                     Majority Banks and, subject to the terms and conditions of
                     such cash collateral account, sums on deposit therein shall
                     be applied (until exhausted) to reduce the principal
                     balance of the revolving credit on the last day of each
                     Interest Period attributable to the applicable
                     Eurocurrency-based Advances of the Revolving Credit;

         (e)         Each such Securitization Transaction shall be structured on
                     the basis of the issuance of non-recourse Debt or other
                     similar securities by the Special Purpose Subsidiary;

         (f)         Before conducting a Permitted Securitization, Agent shall
                     have received, to the extent the applicable Senior Debt
                     Documents require amendment or consent in order to effect
                     such Permitted Securitization, copies of amendments to or
                     consents under the Senior Debt Documents executed and
                     delivered by the Company and the requisite holders of the
                     Senior Debt reflecting such amendments or consents; and

                                       31
<PAGE>   42

         (g)         Both immediately before and after such disposition, no
                     Default or Event of Default (whether or not related to such
                     disposition) has occurred and is continuing.

         In connection with each Permitted Securitization conducted hereunder,
         not less than ten (10) Business Days prior to the date of consummation
         thereof, the Company shall provide to the Agent and each of the Banks
         (i) a schedule in the form attached hereto as Exhibit K identifying the
         specific Installment Contracts or Leases or the Advances to Dealers or
         Leased Vehicles (and providing collection information regarding the
         related Installment Contracts or Leases) proposed to be covered by such
         transaction (with evidence supporting its determination under
         subparagraph (a) of this definition, including without limitation a
         "static pool analysis" comparable to the static pool analysis required
         to be delivered under Section 7.3(c) hereof with respect to such
         Installment Contracts or Leases) and (ii) proposed drafts of the
         material Securitization Documents covering the applicable
         securitization (and the term sheet or commitment relating thereto) and
         within five (5) Business Days following the consummation thereof, the
         Company shall have provided to Agent and each Bank copies of the
         material Securitization Documents, as executed, including an updated
         schedule, substantially in the form of the schedule delivered under
         clause (i) above, identifying the financial assets actually covered by
         such transaction (and, if such financial assets are materially
         different, as reasonably determined by the Company, from those shown in
         the schedule delivered under clause (i), above, collection information
         and evidence supporting its determination under subparagraph (a) of
         this definition, including a comparable "static pool analysis," as
         aforesaid, with respect to such financial assets).

         "Permitted Senior Note Prepayment" shall mean, in addition to the
prepayment made by the Company on June 15, 1999 thereunder, any prepayment by
the Company, on or before January 15, 2000 (as such date may be extended by the
requisite holders of the Senior Debt, provided, however that such date shall not
be extended to a date later than May 31, 2000 and such extension shall not be
given in consideration for any further increase in the interest rate on the
Senior Debt or any other material amendments to the applicable Senior Debt
Documents) of Debt under the senior notes issued in connection with the Senior
Debt Documents in an aggregate PRINCIPAL amount not to exceed  $50,000,000;
provided, however, that (i) at the time of such prepayment (both before and
after giving effect thereto), no Default or Event of Default has occurred and is
continuing and (ii) prior to each such prepayment conducted as a Permitted
Senior Note Prepayment, the Company has received proceeds from Permitted
Securitization(s) (net of any fees, costs and expenses) conducted on or after
December 1, 1999 in an amount substantially equal to the aggregate amount of
such prepayment(s).

         "Permitted Transfer(s)" shall mean (i) any sale, assignment, transfer
or other disposition of inventory or worn-out or obsolete machinery, equipment
or other such personal property in the ordinary course of business, (ii) any
transfer of property by a Subsidiary to the Company, (iii) the transfer of the
Teletrack name (owned by the Company) in connection with the sale of Teletrack,

                                       32
<PAGE>   43

Inc., approved by the Banks under the Prior Credit Agreement, (iv) the sale of
the business of Arlington Investment Company and/or any of its subsidiaries for
net proceeds totaling at least $4,000,000 in cash (all of which net proceeds are
used to reduce Debt outstanding under this Agreement), pursuant to (x) the sale
of all or substantially all of the assets of Arlington Investment Company and/or
any of its subsidiaries or divisions, (y) the sale of all of the capital stock
of Arlington Investment Company and/or any of its subsidiaries or (z) the merger
of Arlington Investment Company and/or any of its subsidiaries with and into any
Person other than the Company or any Subsidiary; in each case, immediately prior
to and immediately after the consummation of which, and after giving effect
thereto, no Default or Event of Default would exist; and (v) any transfer of the
stock of a Special Purpose Subsidiary to the Company or to any other Subsidiary
which is not a Special Purpose Subsidiary.

         "Person" shall mean an individual, corporation, partnership, limited
liability company, trust, incorporated or unincorporated organization, joint
venture, joint stock company, or a government or any agency or political
subdivision thereof or other entity of any kind.

         "Prime Rate" shall mean the per annum interest rate established by
Agent as its prime rate for its borrowers as such rate may vary from time to
time, which rate is not necessarily the lowest rate on loans made by Agent at
any such time.

         "Prime-based Advance" shall mean an Advance (including a Swing Line
Advance) which bears interest at the Prime-based Rate.

         "Prime-based Rate" shall mean (i) with respect to any Advances in
Dollars, the U.S. Prime-based Rate and (ii) with respect to Swing Line Advances
in Canadian Dollars to CAC Canada, the Canadian Prime-based Rate.

         "Prior Credit Agreement" is defined in Recital A to this Agreement.

         "Prohibited Transaction" shall mean any transaction involving a Pension
Plan which constitutes a "prohibited transaction" under Section 406 of ERISA or
Section 4975 of the Internal Revenue Code.

         "Quoted Rate" shall mean the rate of interest per annum offered by the
Swing Line Bank in its sole discretion with respect to a Swing Line Advance.

         "Quoted Rate Advance" means any Swing Line Advance which bears interest
at the Quoted Rate.

         "Rating Agency" shall mean Fitch, or S&P, or Moody's, and "Rating
Agencies" shall be the collective reference to any or all of the foregoing.

         "Refunded Swing Line Advance" is defined in Section 2.5(e) hereof.

                                       33
<PAGE>   44

         "Reportable Event" shall mean a "reportable event" within the meaning
of Section 4043 of ERISA and the regulations promulgated thereunder, which is
material to the Company and its Subsidiaries, taken as a whole.

         "Request for Advance" shall mean a Request for Advance of the Revolving
Credit issued by Company or by a Permitted Borrower and countersigned by the
Company under Section 2.3 of this Agreement in the form annexed hereto as
Exhibit A.

         "Revolving Credit" shall mean the revolving credit loan to be advanced
to the Company or a Permitted Borrower by the Banks pursuant to Section 2
hereof, in an amount not to exceed the Revolving Credit Maximum Amount.

         "Revolving Credit Facility Fee" shall mean the facility fee payable to
Agent for distribution to the Banks pursuant to Section 2.13, hereof.

         "Revolving Credit Maturity Date" shall mean the earlier to occur of (i)
June 13, 2000, as such date may be extended from time to time pursuant to
Section 2.16 hereof, and (ii) the date on which the Revolving Credit Maximum
Amount shall be terminated pursuant to Section 2.15 or 9.2 hereof.

         "Revolving Credit Maximum Amount" shall mean One Hundred Ten Million
Dollars ($110,000,000), subject to any increases in the Revolving Credit Maximum
Amount, pursuant to Section 2.18 of this Agreement, by an amount not to exceed
the Revolving Credit Optional Increase and subject to any reductions or
termination of the Revolving Credit Maximum Amount under Sections 2.15 or 9.2 of
this Agreement.

         "Revolving Credit Notes" shall mean the Notes described in Section 2.1,
hereof, made or to be made by Company or a Permitted Borrower to each of the
Banks in the form annexed to this Agreement as Exhibit C-1 or C-2, as the case
may be, as such Notes may be amended, renewed, replaced or extended from time to
time.

         "Revolving Credit Optional Increase" shall mean an amount up to Forty
Million Dollars ($40,000,000), minus the portions thereof applied from time to
time under Section 2.18 hereof to increase the Revolving Credit Maximum Amount.

         "Securitization Documents" shall mean any note purchase agreement (and
any notes issued thereunder), transfer or security document, master trust or
other trust agreement, servicing agreement, indenture, pooling agreement,
contribution or sale agreement or other document, instruments and certificates
executed and delivered, subject to the terms of this Agreement, to evidence or
secure (or otherwise relating to) a Permitted Securitization, as the same may be
amended from time to time (subject to the terms hereof) and any and all other
documents executed in connection therewith or replacement or renewal thereof.

                                       34
<PAGE>   45

         "Securitization Transaction" shall mean a transfer of, or grant of a
Lien on, Advances to Dealers, Leased Vehicles, Installment Contracts, Leases,
accounts receivable and/or other financial assets by the Company or any
Subsidiary to a Special Purpose Subsidiary or other special purpose or limited
purpose entity and the issuance (whether by such Special Purpose Subsidiary or
other special purpose or limited purpose entity or any other Person) of Debt or
of any securities secured directly or indirectly by interests in, or of trust
certificates or other securities directly or indirectly evidencing interests in,
such Advances to Dealers, Leased Vehicles, Installment Contracts, Leases,
accounts receivable and/or other financial assets.

         "Senior Debt" shall mean the debt issued by the Company pursuant to the
Senior Debt Documents in an aggregate principal amount of Two Hundred One
Million Seven Hundred Fifty Thousand Dollars ($201,750,000).

         "Senior Debt Documents" shall mean (i) the several Credit Acceptance
Corporation Note Purchase Agreements dated as of October 1, 1994 ($60,000,000
9.87%/10.37% (formerly 8.87%) Senior Notes due November 1, 2001), as amended to
the date hereof and (ii) the several Credit Acceptance Corporation Note Purchase
Agreements dated as of August 1, 1996 ($70,000,000 8.99%/9.49% (formerly 7.99%)
Senior Notes due July 1, 2001), as amended to the dated hereof, and (iii) the
several Credit Acceptance Corporation Note Purchase Agreements dated as of March
25, 1997 ($71,750,000 8.77%/9.27% (formerly 7.77%) Senior Notes due October 1,
2001), as amended to the date hereof; and, in each case, the senior notes issued
thereunder, together with any and all other documents, instruments and
certificates executed and delivered pursuant thereto, as the same may be amended
(subject to the terms hereof) from time to time and any and all other documents
executed in exchange therefor or replacement or renewal thereof.

         "Senior Funded Debt" shall mean Funded Debt, other than Subordinated
Funded Debt.

         "Shares", "share capital", "capital stock", "stock" and words of
similar import shall mean and refer to the equity capital interest under
applicable law of any Person in a corporation, howsoever such interest is
created or arises, whether such capital consists of common stock, preferred
stock or preference shares, or other stock, and whether such capital is
evidenced by a certificate, share register entry or otherwise.

         "Significant Subsidiary(ies)" shall mean, as of any date of
determination, any Subsidiary other than any Special Purpose Subsidiary which is
a Permitted Borrower or which has total assets (but excluding in the calculation
of total assets, for any Domestic Subsidiary, any assets which constitute
intercompany loans, advances, or extensions of credit by such Subsidiary to
Company outstanding from time to time and any assets which are acquired or arise
pursuant to a Permitted Securitization, including any equity interest in a
Special Purpose Subsidiary) [this change retroactive to March 31, 1997] in
excess of five percent (5%) of Company's Consolidated Tangible Net Worth,
determined as of the end of each fiscal quarter based upon the financial
statements required to be

                                       35
<PAGE>   46

delivered under Section 7.3(b) or 7.3(c) hereof, as the case may be (and giving
effect to any changes in net worth shown in such financial statements on the
required date of delivery thereof).

         "Significant Domestic Subsidiaries" shall mean those Domestic
Subsidiaries identified as such on Schedule 6.6 hereto, and any Domestic
Subsidiaries which become Significant Subsidiaries subsequent to the date
hereof.

         "Significant Foreign Subsidiaries" shall mean those Foreign
Subsidiaries identified as such on Schedule 6.6 hereto, and any Foreign
Subsidiaries which become Significant Subsidiaries subsequent to the date
hereof.

         "Single Employer Plan" shall mean any Pension Plan which does not
constitute a Multiemployer Plan.

         "Special Purpose Subsidiary" shall mean any wholly-owned direct or
indirect subsidiary of the Company established for the sole purpose of
conducting one or more Permitted Securitizations and otherwise established and
operated in accordance with customary industry practices.

         "Subordinated Debt" shall mean any unsecured Debt subordinated to the
prior payment and discharge in full of the Indebtedness, on written terms and
conditions approved by and acceptable to each of the Banks, in their sole
discretion.

         "Subordinated Funded Debt" shall mean any unsecured Funded Debt which
is subordinate in right of payment and priority to the Indebtedness and which
has an average life and final maturity extending beyond the average life and
final maturity of the Indebtedness.

         "Subsidiary(ies)" shall mean any other corporation or other entity, of
which more than fifty percent (50%) of the outstanding voting stock or interests
is owned either directly or indirectly by Company or one or more of its
Subsidiaries or by Company and one or more of its Subsidiaries. "100%
Subsidiary(ies)" shall mean any Subsidiary whose stock (other than directors' or
qualifying shares to the extent required under applicable law) is owned directly
or indirectly entirely by the Company and/or any of the Permitted Borrowers.

         "Swing Line" shall mean the revolving credit loan to be advanced to the
Company or a Permitted Borrower by the Swing Line Bank pursuant to Section 2.5
hereof, in an aggregate amount (subject to the terms hereof) not to exceed, at
any one time outstanding, the Swing Line Maximum Amount.

         "Swing Line Advance" shall mean an Advance made by Swing Line Bank to
Company or a Permitted Borrower pursuant to Section 2.5 hereof.

                                       36
<PAGE>   47

         "Swing Line Bank" shall mean Comerica Bank, in its capacity as lender
under Section 2.5 of this Agreement, and its successors and assigns.

         "Swing Line Maximum Amount" shall mean Seven Million Five Hundred
Thousand Dollars ($7,500,000).

         "Swing Line Notes" shall mean the swing line notes described in Section
2.5 hereof, made by Company or a Permitted Borrower to Swing Line Bank in the
form annexed hereto as Exhibit E, as such Notes may be amended or supplemented
from time to time, and any notes issued in substitution, replacement or renewal
thereof from time to time.

         "Syndications Agent" shall mean Bank of America, N.A. (formerly known
as NationsBank, N.A., "Bank of AMERICA") or such successor syndication agent as
appointed by the Company under Section 12.15 hereof.

         "S&P" shall mean Standard & Poor's Ratings Group, and its successors.

         "Trans-European Business Day" shall mean a day when the Trans-European
Settlement System is open for business.

         "Trans-European Settlement System" shall mean the Trans-European
Automated Real-time Gross Settlement Express Transfer System or any successor.

         "Treaty on European Union" shall mean the Treaty of Rome of March 25,
1957, as amended by the Single European Act 1986 and the Maastricht Treaty
(which was signed at Maastricht on February 7, 1992 and came into force on
November 1, 1993), as amended from time to time.

         "Term Loan" shall mean the term loan funded by the Banks at the
election of the Company, by conversion, pursuant to Section 4.1 hereof.

         "Term Loan Conversion Date" is defined in Section 4.1.

         "Term Loan Maturity Date" shall mean the one-year anniversary of the
Term Loan Conversion Date.

         "Term Loan Rate Request" shall mean the Term Loan Rate Request issued
by the Company and the Permitted Borrowers under this Agreement in the form
attached to this Agreement as Exhibit K.

         "Term Notes" shall mean the Term Notes described in Section 4.1 made or
to be made by the Company to each of the Banks in the form attached to this
Agreement as Exhibit B, as such Notes may be amended, renewed, replaced or
extended from time to time.

                                       37
<PAGE>   48

         "Unearned Finance Charges" shall mean, as of any applicable date of
determination, the unearned finance charges utilized in deriving Installment
Contract receivables, net on the Consolidated balance sheet of the Company and
its Subsidiaries, as disclosed in the footnotes thereto; provided that Unearned
Finance Charges shall not include unearned finance charges attributable to
retail installment contracts which are not at such time "Installment Contracts",
due to the proviso in the definition of such term in this Agreement.

         "U.S. Prime-based Rate" shall mean, for any day, that rate of interest
which is equal to the sum of the Applicable Margin plus the greater of (i) the
U.S. Prime Rate, and (ii) the Alternate Base Rate.

         "U.S. Prime Rate" shall mean the per annum rate of interest announced
by the Agent, at its main office from time to time as its "prime rate" (it being
acknowledged that such announced rate may not necessarily be the lowest rate
charged by the Agent to any of its customers), which U.S. Prime Rate shall
change simultaneously with any change in such announced rate.

         "Utilization" shall mean (a) on or before the Revolving Credit Maturity
Date, the aggregate amount outstanding under the Revolving Credit including all
Letter of Credit Obligations and all Swing Line Advances, determined in the
manner set forth under Sections 2.13 or 3.4, as the case may be, and (b) after
the Revolving Credit Maturity Date, in the event the Company elects to convert
the aggregate principal amount outstanding under the Revolving Credit to a Term
Loan, the aggregate amount outstanding under the Term Loan.

         "Utilization Fee" shall mean the fees payable to Agent for distribution
to the Banks pursuant to Section 2.13 hereof.

         1.2 Euro.

                  (a) Redenomination of Eurocurrency-based Advances and other
Advances into Euro Units.

                           (i) From and after January 1, 1999, each obligation
                  under this Agreement of a party hereto which (A) was
                  originally denominated in the former national currency of a
                  Participating Member State, or (B) would otherwise have been
                  denominated in such former national currency prior to such
                  date shall be denominated in, or redenominated into, as
                  applicable, the Euro Unit in accordance with EMU Legislation
                  and applicable state law, provided that, if and to the extent
                  that any EMU Legislation provides that amounts denominated in
                  the euro unit or the National Currency Unit of a Participating
                  Member State, that are payable by crediting an account of the
                  creditor within that country, may be made in either Euro or
                  National Currency Units, each party to this Agreement shall be
                  entitled to

                                       38
<PAGE>   49

                  pay or repay any such amounts in either the Euro Unit or such
                  National Currency Unit.

                           (ii) Any Eurocurrency-based Advances denominated in a
                  National Currency Unit of a Participating Member State which
                  were made prior to January 1, 1999 but which have Interest
                  Periods ending after January 1, 1999 shall, for purposes of
                  this Agreement, remain denominated in such National Currency
                  Unit provided that such Advances may be repaid either in the
                  Euro or in such National Currency Unit after January 1, 1999;
                  provided, further, that from and after January 1, 2002 all
                  such amounts shall be deemed to be in Euro Units.

                           (iii) Subject to any EMU Legislation, references in
                  this Agreement to a minimum amount (or an integral multiple
                  thereof) in a National Currency Unit to be paid to or by a
                  party hereto shall be deemed to be a reference to such
                  reasonably comparable and convenient amount (or an integral
                  multiple thereof) in the Euro Unit as the Agent may from time
                  to time specify.

                  (b)    Payments.

                           (i) All payments by any of the Company or a Permitted
                  Borrower or any Bank of amounts denominated in the Euro or a
                  National Currency Unit of a Participating Member State, shall
                  be made in immediately available, freely transferable, cleared
                  funds to the account of the Agent in the principal financial
                  center in such Participating Member State, as from time to
                  time designated by the Agent for such purpose.

                           (ii) All amounts payable by the Agent to any party
                  under this Agreement in the National Currency Unit of a
                  Participating Member State shall instead be paid in the Euro
                  Unit.

                           (iii) The Agent shall not be liable to any party to
                  this Agreement in any way whatsoever for any delay, or the
                  consequences of any delay, in the crediting to any account of
                  any amount denominated in the Euro or a National Currency Unit
                  of a Participating Member State.

                           (iv) All references herein to the London interbank or
                  other national market with respect to any National Currency
                  Unit of a Participating Member State shall be deemed a
                  reference to the applicable markets and locations referred to
                  in the definition of "Business Day" in Section 1.1.

                  (c) If the basis of accrual of interest or fees expressed in
this Agreement with respect to the currency of any state that becomes a
Participating Member State shall be inconsistent

                                       39
<PAGE>   50

with any convention or practice in the London interbank market for the basis of
accrual of interest or fees in respect of Euros, such convention or practice
shall replace such expressed basis effective as of and from the date on which
such state becomes a Participating Member State; provided, that if any Advance
in the currency of such state is outstanding immediately prior to such date,
such replacement shall take effect, with respect to such Advance, at the end of
the then current Interest Period.

                  (d) Increased Costs. The Company and the Permitted Borrowers
shall, from time to time upon demand of any Bank (with a copy to the Agent), pay
to such Bank the amount of any cost or increased cost incurred by, or of any
reduction in any amount payable to or in the effective return on its capital to,
or of interest or other return foregone by, such Bank or any holding company of
such Bank as a result of the introduction of, changeover to or operation of the
Euro in a Participating Member State, other than any such cost or reduction or
amount foregone reflected in any interest rate hereunder.

                  (e) Unavailability of Euro. If the Agent at any time
determines that: (i) the Euro has ceased to be utilized as the basic accounting
unit of the European Community; (ii) for reasons affecting the market in Euros
generally, Euros are not freely traded between banks internationally; or (iii)
it is illegal, impossible or impracticable for payments to be made hereunder in
Euro, then the Agent may, in its discretion declare (such declaration to be
binding on all the parties hereto) that any payment made or to be made
thereafter which, but for this provision, would have been payable in the Euro
shall be made in a component currency of the Euro or Dollars (as selected by the
Agent (the "Selected Currency") and the amount to be so paid shall be calculated
on the basis of the equivalent of the Euro in the Selected Currency).

                  (f) Additional Changes at Agent's Discretion. This section and
other provisions of this Agreement relating to Euros and the National Currency
Units of Participating Member States shall be subject to such further changes
(including changes in interpretation or construction) as the Agent may from time
to time in its reasonable discretion notify to the Company and the Permitted
Borrowers and the Banks to be necessary or appropriate to reflect the changeover
to the Euro in Participating Member States.

         1.3 Interest Act (Canada). For the purposes of disclosure under the
ITA, if and to the extent applicable, whenever interest is to be paid hereunder
and such interest is to be calculated on the basis of a period of less than a
calendar year, the yearly rate of interest to which the rate determined pursuant
to such calculation is equivalent is the rate so determined multiplied by the
actual number of days in the calendar year in which the same is to be
ascertained and divided by the number of days in such period.

                                       40
<PAGE>   51

                                  ATTACHMENT 3

                        "Selected Sections -- Section 2"

<PAGE>   52

         2.13 Revolving Credit Facility Fee And Utilization Fee.

         (a) Revolving Credit Facility Fee. From the date hereof to the
Revolving Credit Maturity Date, the Company shall pay to the Agent, for
distribution to the Banks (as set forth below), a Revolving Credit Facility Fee
determined by multiplying the Applicable Fee Percentage per annum times the
Revolving Credit Maximum Amount then applicable under Section 2.15 hereof
(whether used or unused), computed on a daily basis. The Revolving Credit
Facility Fee shall be payable quarterly in arrears commencing July 1, 1999 (in
respect of the prior calendar quarter or portion thereof), and on the first day
of each calendar quarter thereafter and on the Revolving Credit Maturity Date,
and shall be computed on the basis of a year of three hundred sixty (360) days
and assessed for the actual number of days elapsed. Whenever any payment of the
Revolving Credit Facility Fee shall be due on a day which is not a Business Day,
the date for payment thereof shall be extended to the next Business Day. Upon
receipt of such payment Agent shall make prompt payment to each Bank of its
share of the Revolving Credit Facility Fee based upon its respective Percentage.

         (b) Utilization Fee. For each day from and after December 1, 1999 that
the Utilization equals or exceeds 50% of (x) the Revolving Credit Maximum Amount
in effect on such day, if such day is before the Revolving Credit Maturity Date
or (y) the Revolving Credit Maximum Amount in effect on the Revolving Credit
Maturity Date, if such day is on or after the Revolving Credit Maturity Date and
the Company elects the "term out" option under Section 4.1 hereof (in either
case until the Indebtedness has been paid and discharged in full and all
commitments terminated), the Company shall pay to the Agent, for distribution to
the Banks pro rata in accordance with their respective Percentages, a
Utilization Fee, which fee shall be determined and payable in accordance with
this Section 2.13. The Utilization Fee shall be equal to the Utilization on such
day times the applicable Fee Percentage computed on a daily basis. The
Utilization Fee shall be computed on the basis of a year of three hundred sixty
(360) days and assessed for the actual number of days elapsed, and shall be
payable quarterly in arrears commencing January 1, 2000 (in respect to the prior
fiscal quarter or portion thereof) and on the first day of each fiscal quarter
thereafter and on the Revolving Credit Maturity Date (or, if the company elects
the "term out" option under Section 4.1 hereof, the Term Loan Maturity Date).
whenever any payment of the Utilization Fee shall be due on a day which is not a
Business Day, the day for payment thereof shall be extended to the next Business
Day. Upon receipt of such payment, Agent shall make prompt payment to each Bank
of its share of the Utilization Fee based upon its respective Percentage. It is
expressly understood that the Utilization Fee described in this Section shall
not be refundable under any circumstances.

         2.15 Optional Reduction or Termination of Revolving Credit Maximum
Amount. Provided that no Default or Event of Default has occurred and is
continuing, the Company may upon at least five Business Days' prior written
notice to the Agent, permanently reduce the Revolving Credit Maximum Amount in
whole at any time, or in part from time to time, without premium or penalty,
provided that: (i) each partial reduction of the Revolving Credit Maximum Amount
shall be

                                       1
<PAGE>   53

in an aggregate amount equal to Ten Million Dollars ($10,000,000) or a larger
integral multiple of One Million Dollars ($1,000,000); (ii) each reduction shall
be accompanied by the payment of the Revolving Credit Facility Fee and
Utilization Fee, if any, accrued to the date of such reduction; (iii) the
Company or any Permitted Borrower, as applicable, shall prepay in accordance
with the terms hereof the amount, if any, by which the aggregate unpaid
principal amount of Advances (using the Current Dollar Equivalent of any such
Advance outstanding in any Alternative Currency) of the Revolving Credit, plus
the aggregate principal amount of Swing Line Advances outstanding hereunder
(using the Current Dollar Equivalent of any such Advance outstanding in an
Alternative Currency), plus the aggregate undrawn amount of outstanding Letters
of Credit (using the Current Dollar Equivalent thereof for any Letters of Credit
denominated in any Alternative Currency), plus the unreimbursed amount of any
draws under any Letters of Credit (determined as aforesaid), exceeds the amount
of the Revolving Credit Maximum Amount as so reduced, together with interest
thereon to the date of prepayment; (iv) if the termination or reduction of the
Revolving Credit Maximum Amount requires the prepayment of a Eurocurrency-based
Advance or a Quoted Rate Advance, the termination or reduction may be made only
on the last Business Day of the then current Interest Period applicable to such
Eurocurrency-based Advance or such Quoted Rate Advance; and (v) no reduction
shall reduce the Revolving Credit Maximum Amount to an amount which is less than
the aggregate undrawn amount of any Letters of Credit outstanding at such time.
Reductions of the Revolving Credit Maximum Amount and any accompanying
prepayments of the Revolving Credit Notes shall be distributed by Agent to each
Bank in accordance with such Bank's Percentage thereof, and will not be
available for reinstatement by or readvance to the Company or any Permitted
Borrower, and any accompanying prepayments of the Swing Line Note shall be
distributed by Agent to the Swing Line Bank and will not be available for
reinstatement by or readvance to the Company. Any reductions of the Revolving
Credit Maximum Amount hereunder shall reduce each Bank's portion thereof
proportionately (based on the applicable Percentages), and shall be permanent
and irrevocable. Any payments made pursuant to this Section shall be applied
first to outstanding Prime-based Advances under the Revolving Credit, next to
Swing Line Advances carried at the Prime-based Rate, next to Eurocurrency-based
Advances of the Revolving Credit and then to Swing Line Advances carried at the
Eurocurrency-based Rate or the Quoted Rate.

                                       2
<PAGE>   54

                                  ATTACHMENT 4

                        "Selected Sections -- Section 7"

<PAGE>   55

         7. AFFIRMATIVE COVENANTS

         Company and each of the Permitted Borrowers covenants and agrees that
it will, and, as applicable, it will cause its Subsidiaries (but excluding, for
purposes of Sections 7.3 through 7.10, 7.19, 7.20 and 7.22 hereof, any Special
Purpose Subsidiary) to, so long as any of the Banks are committed to make any
Advances under this Agreement and thereafter so long as any Indebtedness remains
outstanding under this Agreement:

         7.1 Preservation of Existence, Etc. Subject to the terms of this
Agreement: (i) preserve and maintain its existence and such of its rights,
licenses, and privileges as are material to the business and operations
conducted by it; (ii) qualify and remain qualified to do business in each
jurisdiction in which such qualification is material to its business and
operations or ownership of its properties; (iii) continue to conduct and operate
its businesses substantially as conducted and operated during the present and
preceding fiscal years; (iv) at all times maintain, preserve and protect all of
its franchises and trade names and preserve all the remainder of its property
and keep the same in good repair, working order and condition; and (v) from time
to time make, or cause to be made, all necessary or appropriate repairs,
replacements, betterments and improvements thereto such that the businesses
carried on in connection therewith may be properly and advantageously conducted
at all times.

         7.2 Keeping of Books. Keep proper books of record and account in which
full and correct entries shall be made of all of its financial transactions and
its assets and businesses so as to permit the presentation of financial
statements prepared in accordance with GAAP.

         7.3 Reporting Requirements. Furnish Agent with:

                  (a) as soon as possible, and in any event within three
calendar days after becoming aware of the occurrence of each Default or Event of
Default, a written statement of the chief financial officer of the Company (or
in his absence, a responsible senior officer) setting forth details of such
Default or Event of Default and the action which the Company or such Permitted
Borrower has taken or has caused to be taken or proposes to take or cause to be
taken with respect thereto;

                  (b) as soon as available, and in any event within one hundred
twenty (120) days after and as of the end of each of Company's fiscal years, (i)
a detailed Consolidated audit report of Company certified to by independent
certified public accountants satisfactory to Banks together with an unaudited
Consolidating report of Company and its Subsidiaries certified by an authorized
officer of Company as to consistency (with prior financial reports and
accounting periods), accuracy and fairness of presentation; and (ii) a Covenant
Compliance Report;

                  (c) as soon as available, and in any event within sixty (60)
days after and as of the end of each quarter, excluding the last quarter, of
each fiscal year, (i) a Consolidated and

                                       1
<PAGE>   56

Consolidating balance sheet, income statement, statement of cash flows and
statement of shareholder's equity of Company and its Subsidiaries certified by
an authorized officer of Company as to consistency (with prior financial reports
and accounting periods), accuracy and fairness of presentation; (ii) a Covenant
Compliance Report; and (iii) a "static pool analysis" substantially in the form
of Exhibit L attached hereto and in any event satisfactory in form and substance
to the Majority Banks, which analyzes the performance of Company's and each
Permitted Borrower's Installment Contracts (segregated between the Company's
North American operations and its UK operations) on a quarterly basis, and, for
quarters beginning with the quarter ended September 30, 1999, a "static pool
analysis" substantially in the form of Exhibit L attached hereto and in any
event and satisfactory in form and substance to the Majority Banks, which
analyzes the performance of the Company's and each Permitted Borrower's Leases
on a quarterly basis (segregated between the Company's North American operations
and its UK operations), in each case certified by an authorized officer of the
Company as to consistency with prior such analyses, accuracy and fairness of
presentation;

                  (d) as soon as possible, and in any event within three
calendar days after becoming aware (i) of any material adverse change in the
financial condition of the Company, any of its Subsidiaries or any of the
Permitted Borrowers, a certificate of the chief financial officer of Company (or
in his absence, a responsible senior officer) setting forth the details of such
change, (ii) of the taking by the Internal Revenue Service or any foreign taxing
jurisdiction of a tax position (verbal or written) which could have a materially
adverse effect upon the Company, any of its Subsidiaries or any of the Permitted
Borrowers (or any such tax position taken by the Company or any of its
Subsidiaries or any of the Permitted Borrowers) setting forth the details of
such position and the financial impact thereof or (iii) of any change in the
Rating Level of which Company has actual knowledge;

                  (e) as soon as available (and with copies for each of the
Banks), the Company's 8-K, 10-Q and 10-K Reports filed with the federal
Securities and Exchange Commission, and in any event, with respect to the 10-Q
Report, within sixty (60) days of the end of each of the first three fiscal
quarters of each of Company's fiscal years, and with respect to the 10-K Report,
within one hundred twenty (120) days after and as of the end of each of
Company's fiscal years; and as soon as available, copies of all filings, reports
or other documents filed by the Company or any of its Subsidiaries with the
federal Securities and Exchange Commission or other federal regulatory or taxing
agencies or authorities in the United States, or comparable agencies or
authorities in foreign jurisdictions, or any stock exchanges in such
jurisdictions;

                  (f) promptly as issued (and with copies for each of the
Banks), all press releases, notices to shareholders and all other material
communications transmitted by the Company or any of its Subsidiaries; and,
concurrently with each incurrence thereof written notice that new Future Debt
has been incurred, accompanied by copies of the material documents governing
such Debt and a certification that, both before and after giving effect thereto,
no Default or Event of Default shall have occurred and be continuing and the
Company is otherwise in compliance with this Agreement;

                                       2
<PAGE>   57

                  (g) on not less than an annual basis, a copy of the standard
form of Company's Dealer Agreement then in effect;

                  (h) on or before ninety (90) days after the commencement of
each fiscal year, a Consolidated plan and financial projections and which shall
reflect any Future Debt or Permitted Securitizations contemplated to be incurred
or made for the succeeding two years of the Company and its Significant
Subsidiaries including, without limitation, a Consolidated and Consolidating
balance sheet and a Consolidated and Consolidating statement of projected income
and cash flow of the Company for each of the succeeding two fiscal years and
including a statement in reasonable detail specifying all material assumptions
underlying the projections;

                  (i) promptly upon the request of Agent or the Majority Banks
(acting through Agent) from time to time, a "static pool analysis" which
analyzes the performance of any Installment Contracts or Leases transferred or
encumbered pursuant to a Permitted Securitization comparable to the static pool
analysis required to be delivered pursuant to subparagraph (c) of this Section
7.3; and

                  (j) promptly, and in form to be satisfactory to Agent and the
requesting Bank or Banks, such other information as Agent or any of the Banks
(acting through Agent) may reasonably request from time to time.

         7.4 Maintain Total Debt Level. On a Consolidated basis, maintain as of
the end of each fiscal quarter, Consolidated Total Debt at a level equal to or
less than each of the following tests:

                  (a) Two Hundred Seventy-Five Percent (275%) of Company's
Consolidated Tangible Net Worth; provided, however, that for the purposes of
this subparagraph (a), Consolidated Total Debt shall be calculated by
including all Debt incurred by a Special Purpose Subsidiary, whether or not
included therein under GAAP;

                  (b) Seventy Five Percent (75%) of the sum of (i) Advances to
Dealers and (ii) Leased Vehicles; provided, however, that for the purposes of
this subparagraph (b), Consolidated Total Debt shall be calculated by excluding
all Debt incurred by a Special Purpose Subsidiary, whether or not included
therein under GAAP; and

                  (c) Sixty Percent (60%) of the sum of (i) Gross Current
Installment Contract Receivables and (ii) Gross Current Leased Vehicles;
provided, however, that for the purposes of this subparagraph (c), Consolidated
Total Debt shall be calculated by excluding all Debt incurred by a Special
Purpose Subsidiary, whether or not included therein under GAAP.

         7.5 Maintain Senior Funded Debt Level. On a Consolidated basis,
maintain as of the end of each fiscal quarter Consolidated Senior Funded Debt
(excluding in the calculation thereof, for purposes of this Section 7.5, all
Debt incurred by a Special Purpose Subsidiary, whether or not included therein
under GAAP) at a level equal to or less than Two Hundred Percent (200%) of

                                       3
<PAGE>   58

the Company's Consolidated Tangible Net Worth and in an amount not in excess of
the sum of (i) Net Installment Contract Receivables less Net Dealer Holdbacks
and (ii) Leased Vehicles less Net Leased Vehicle Dealer Holdbacks, divided by
1.10.

         7.6 Maintain Subordinated Funded Debt Level. On a Consolidated basis,
maintain as of the end of each fiscal quarter the Consolidated Subordinated
Funded Debt (excluding in the calculation thereof, for purposes of this Section
7.6, all Debt incurred by a Special Purpose Subsidiary, whether or not included
therein under GAAP) at a level equal to or less than One Hundred Fifty Percent
(150%) of the Company's Consolidated Tangible Net Worth.

         7.7 Minimum Tangible Net Worth. On a Consolidated basis, maintain
Consolidated Tangible Net Worth of not less than Two Hundred Eighteen Million
Seven Hundred Twenty Five Thousand Dollars ($218,725,000.00), plus the sum of
(i) seventy-five percent (75%) of Consolidated Net Income for each fiscal
quarter of the Company (A) beginning on or after January 1, 1999, (B) ending on
or before the applicable date of determination thereof, and (C) for which
Consolidated Net Income as determined above is a positive amount and (ii) the
Equity Offering Adjustment.

         7.8 Maintain Gross Dealer Advances to Net Installment Contract
Receivables Level. On a Consolidated Basis, maintain as of the end of each
fiscal quarter Gross Advances to Dealers at a level not to exceed Seventy
Percent (70%) of Net Installment Contract Receivables.

         7.9 Maintain Fixed Charge Coverage Ratio. On a Consolidated basis,
maintain as of the end of each fiscal quarter a Fixed Charge Coverage Ratio of
not less than 2.25 to 1.0.

         7.10 Inspections. Permit Agent and each Bank, through their authorized
attorneys, accountants and representatives to examine (and make copies of)
Company's and each of the Subsidiaries' books, accounts, records, ledgers and
assets and properties (including without limitation, any Collateral) of every
kind and description including, without limitation, all promissory notes,
security agreements, customer applications, vehicle title certificates, chattel
paper, Uniform Commercial Code filings, wherever located at all reasonable times
during normal business hours, upon oral or written request of Agent or such
Bank; and permit Agent and each Bank or their authorized representatives, at
reasonable times and intervals, to visit all of its offices, discuss its
financial matters with its officers and independent certified public
accountants, and by this provision Company authorizes such accountants to
discuss the finances and affairs of Company and its Subsidiaries (provided that
Company is given an opportunity to participate in such discussions) and examine
any of its or their books and other corporate records. An examination of the
records or properties of Company or any of its Subsidiaries may require
revealment of proprietary and/or confidential data and information, and the
Agent and each of the Banks agrees upon request of the inspected party to
execute a confidentiality agreement (satisfactory to Agent or the inspecting
Bank, as the case may be, and such party) on behalf of the Agent or such
inspecting Bank and all parties making such inspections or examinations under
its authorization; provided however that such

                                       4
<PAGE>   59

confidentiality agreement shall not prohibit Agent from revealing such
information to Banks or prohibit the inspecting Bank from revealing such
information to Agent or another Bank. Notwithstanding the foregoing, all
information furnished to the Banks hereunder shall be subject to the undertaking
of the Banks set forth in Section 13.13 hereof.

         7.11 Taxes. Pay and discharge all taxes and other governmental charges,
and all material contractual obligations calling for the payment of money,
before the same shall become overdue, unless and to the extent only that such
payment is being contested in good faith by appropriate proceedings and is
reserved for, as required by GAAP on its balance sheet, or where the failure to
pay any such matter could not have a material adverse effect on the Company and
its Subsidiaries, taken as a whole.

         7.12 Further Assurances. Execute and deliver or cause to be executed
and delivered to Agent within a reasonable time following Agent's request, and
at the Company's and the Permitted Borrowers' expense, such other documents or
instruments as Agent may reasonably require to effectuate more fully the
purposes of this Agreement or the other Loan Documents, including without
limitation any Collateral Documents required under Section 7.23 hereof.

         7.13 Insurance. Maintain, with financially sound and reputable
insurers, insurance with respect to its material property and business against
such casualties and contingencies, of such types (including, without limitation,
insurance with respect to losses arising out of such property loss or damage,
public liability, business interruption, larceny, workers' compensation,
embezzlement or other criminal misappropriation) and in such amounts as is
customary in the case of corporations of established reputations engaged in the
same or similar business and similarly situated (and including such lender loss
payee clauses and/or endorsements as Agent or the Majority Banks may request
following the delivery of the Collateral Documents under Section 7.23 hereof),
provided that such insurance is commercially available, it being understood that
the Company and its Subsidiaries may self-insure against hazards and risks with
respect to which, and in such amounts as, the Company in good faith determines
to be prudent and consistent with sound financial and business practice.

         7.14 Indemnification. With respect to the Company, indemnify and save
Agent and each of the Banks harmless from all reasonable loss, cost, damage,
liability or expenses, including reasonable attorneys' fees and disbursements,
incurred by Agent and each of the Banks by reason of an Event of Default or
enforcing the obligations of the Company or the Permitted Borrowers under this
Agreement or the other Loan Documents, or in the prosecution or defense of any
action or proceeding concerning any matter growing out of or connected with this
Agreement or any of the other Loan Documents other than resulting from the gross
negligence or willful misconduct of Agent or such Bank or Banks, as the case may
be; and, with respect to each of the Permitted Borrowers, indemnify and save
Agent and each of the Banks harmless from all reasonable loss, cost, damage,
liability or expenses, including reasonable attorneys' fees and disbursements,
incurred by Agent and each of the Banks with respect to such Permitted Borrower
by reason of an Event of Default or enforcing the obligations of such Permitted
Borrower under this Agreement or the other Loan

                                       5
<PAGE>   60

Documents or in the prosecution or defense of any action or proceeding
concerning any matter growing out of or connected with this Agreement or any of
the other Loan Documents, other than resulting from the gross negligence or
willful misconduct of Agent or such Bank or Banks, as the case may be.

         7.15 Governmental and Other Approvals. Apply for, obtain and/or
maintain in effect, as applicable, all material authorizations, consents,
approvals, licenses, qualifications, exemptions, filings, declarations and
registrations (whether with any court, governmental agency, regulatory
authority, securities exchange or otherwise) which are necessary in connection
with the execution, delivery and performance of this Agreement, the other Loan
Documents, or any other documents or instruments to be executed and/or delivered
by the Company or any of the Permitted Borrowers or Guarantors, as the case may
be, in connection therewith or herewith.

         7.16 Compliance with Contractual Obligations and Laws.

                  (a) Comply in all material respects with all Contractual
Obligations, and with all applicable laws, rules, regulations and orders of any
governmental authority, whether federal, state, local or foreign (including
without limitation Hazardous Materials Laws and any consumer protection, truth
in lending, disclosure and other similar laws and regulations governing the
provision of financing to consumers), in effect from time to time, except to the
extent that failure to comply therewith could not reasonably be expected to
have, individually or in the aggregate, a material adverse effect on the
business, operations, property or financial or other condition of the Company or
any of the Permitted Borrowers and their respective Subsidiaries, taken as a
whole, and could not reasonably be expected to materially adversely affect the
ability of the Company or any of the Permitted Borrowers or Guarantors to
perform their respective obligations under any of the Loan Documents to which
they are a party.

                  (b) Comply in all material respects with all applicable
federal, state and/or foreign laws and regulations in effect from time to time
governing the due and proper creation of installment sales contracts, motor
vehicle leases or similar indebtedness or obligations and of the creation,
perfection and/or protection, as applicable, of first priority security
interests or lessor's interests in motor vehicles being financed and/or sold
and/or leased pursuant thereto, as applicable.

         7.17 ERISA. Comply in all material respects with all requirements
imposed by ERISA as presently in effect or hereafter promulgated or the Internal
Revenue Code (or comparable laws in applicable jurisdictions outside the United
States of America relating to foreign Pension Plans) and promptly notify Banks
upon the occurrence of any of the following events:

                  (a) the termination of any Pension Plan pursuant to Subtitle C
of Title IV of ERISA or otherwise (other than any defined contribution plan not
subject to Section 412 of the Internal Revenue Code and any Multiemployer Plan);

                                       6

<PAGE>   61

                  (b) the appointment of a trustee by a United States District
Court to administer any Pension Plan pursuant to ERISA;

                  (c) the commencement by the PBGC, or any successor thereto, of
any proceeding to terminate any Pension Plan;

                  (d) the failure of the Company or any ERISA Affiliate to make
any payment in respect of any Pension Plan required under Section 412 of the
Internal Revenue Code;

                  (e) the withdrawal of the Company or any ERISA Affiliate from
any Multiemployer Plan;

                  (f) the occurrence of an accumulated funding deficiency (as
defined in Section 6.18 hereof) or a Reportable Event; or

                  (g) the occurrence of a Prohibited Transaction which could
have a material adverse effect upon the Company and its Subsidiaries, taken as a
whole.

         7.18 Environmental Matters.

                  (a) Conduct and complete all investigations, studies, sampling
and testing, and all remedial, removal and other actions necessary to clean up
and remove all Hazardous Materials on or affecting any premises owned or
occupied by Company or any of its Subsidiaries, whether resulting from conduct
of Company or any of its Subsidiaries or any other Person, if required by
Hazardous Material Laws, all such actions to be taken in accordance with such
laws, and the orders and directives of all applicable federal, state and local
governmental authorities; and

                  (b) Defend, indemnify and hold harmless Agent and each of the
Banks, and their respective employees, agents, officers and directors from and
against any and all claims, demands, penalties, fines, liabilities, settlements,
damages, costs or expenses of whatever kind or nature arising out of or related
to (i) the presence, disposal, release or threatened release of any Hazardous
Materials on, from or affecting any premises owned or occupied by Company or any
of its Subsidiaries, (ii) any personal injury (including wrongful death) or
property damage (real or personal) arising out of or related to such Hazardous
Materials, (iii) any lawsuit or other proceeding brought or threatened,
settlement reached or governmental order or decree relating to such Hazardous
Materials, (iv) the cost of removal of all Hazardous Materials from all or any
portion of any premises owned by Company or its Subsidiaries, (v) the taking of
necessary precautions to protect against the release of Hazardous Materials on
or affecting any premises owned by Company or any of its Subsidiaries, (vi)
complying with all Hazardous Material Laws and/or (vii) any violation by Company
or any of its Subsidiaries of Hazardous Material Laws, including without
limitation, reasonable attorneys and consultants fees, investigation and
laboratory fees, environmental studies required by Agent or any Bank (whether
before or after the occurrence of any Default or Event of

                                       7
<PAGE>   62

Default), court costs and litigation expenses; and, if so requested by Agent or
any Bank, Company shall execute, and shall cause the Permitted Borrowers to
execute, separate indemnities covering the foregoing matters. The obligations of
Company and Permitted Borrowers under this Section 7.18 shall be in addition to
any and all other obligations and liabilities the Company or any of the
Permitted Borrowers may have to Agent or any of the Banks at common law or
pursuant to any other agreement.

         7.19 Maintain Debt Rating. Cause Fitch on an ongoing basis, but not
less than once during each calendar year, to maintain a Debt Rating for
Company's long term, non-credit enhanced senior debt.

         7.20 Installment Contract Standards. (a) Cause each Installment
Contract included in Gross Installment Contract Receivables and each Lease
purchased and/or entered into by or on behalf of Company or any Subsidiary to
satisfy the following requirements:

                           (i) Such Installment Contract or Lease (and the
                  interest of Company or its Subsidiaries thereunder) has not
                  been sold, transferred or otherwise assigned or encumbered by
                  the Company or its Subsidiaries to any Person, other than to
                  the Lenders pursuant to the Collateral Documents;

                           (ii) The Installment Contract obligor or lessee under
                  such Lease thereunder is not an Affiliate of the Company; and

                           (iii) It is owned by Company or a Subsidiary, or
                  Company or a Subsidiary has a valid first priority perfected
                  security interest therein; and

                  (b) Exercise its best efforts to enforce the provisions of its
Dealer Agreements relating to the eligibility criteria for Installment Contracts
included in Gross Installment Contract Receivables and for Leases, including
without limitation:

                           (i) it has not been rescinded and it is a valid,
                  binding and enforceable obligation of the applicable
                  Installment Contract obligor or lessee under such Lease;

                           (ii) it is enforceable against the applicable
                  Installment Contract obligor or lessee under such Lease for
                  the amount shown as owing in the contract and in any related
                  records;

                           (iii) it complied at the time it was originated or
                  made, and is currently in compliance in all respects, with all
                  requirements of applicable federal, state and local laws, and
                  regulations thereunder, including, usury laws, the Federal
                  Truth-in-Lending Act, the Equal Credit Opportunity Act, the
                  Fair Credit Billing

                                       8
<PAGE>   63

                  Act, the Fair Credit Reporting Act, the Fair Debt Collection
                  Practices Act, the Federal Trade Commission Act, the
                  Magnuson-Moss Warranty Act, Federal Reserve Board Regulations
                  B, M and Z, state adaptations of the National Consumer Act and
                  of the Uniform Consumer Credit Code and any other consumer
                  credit or equal opportunity disclosure;

                           (iv) it is not subject to any material offset,
                  credit, allowance or adjustment;

                           (v) the Company or a Subsidiary has a first and prior
                  perfected security interest or ownership interest (subject
                  only to the applicable Lease) (received directly or by
                  assignment) in the financed or leased vehicle securing the
                  performance of the applicable Installment Contract obligor or
                  lessee under such Lease;

                           (vi) the financed vehicle has been delivered to the
                  applicable Installment Contract obligor or lessee under such
                  Lease and, on the date of delivery, satisfied all warranties,
                  expressed or implied, made to such Installment Contract
                  obligor or lessee under such Lease; and

                           (vii) the applicable Installment Contract obligor or
                  lessee under such Lease owns or leases the motor vehicle free
                  of all liens or encumbrances, except the security interest
                  granted to Company or a Subsidiary or the lessor's interest
                  held by Company or a Subsidiary (received in each case
                  directly or by assignment) in the applicable Installment
                  Contract or Lease.

         7.21 Financial Covenant Amendments. In the event that, at any time
while this Agreement is in effect, the Company shall issue any indebtedness for
borrowed money which is not by its terms subordinate and junior to other
indebtedness of Company for borrowed money and such indebtedness shall include,
or be issued pursuant to a trust indenture or other agreement which includes,
financial covenants which are not substantially identical to the financial
covenants set forth in this Agreement, the Company shall so advise the Agent in
writing. Such notice shall be accompanied by a copy of the applicable agreement
containing such financial covenants. The Agent shall promptly furnish a copy of
such notice and the applicable agreement to each of the Banks. If the Majority
Banks determine in their sole discretion that some or all of the financial
covenants set forth in such agreement are more favorable to the lender
thereunder than the financial covenants set forth in this Agreement ("More
Favorable Terms") and that the Majority Banks desire that this Agreement be
amended to incorporate the More Favorable Terms, then the Agent shall give
written notice of such determination to the Company. Thereupon, and in any event
within thirty (30) days following the date of notice by Agent to the Company,
Company and the Banks shall enter into an amendment to this Agreement
incorporating, on terms and conditions acceptable to the Majority Banks, the
More Favorable Terms.

                                       9
<PAGE>   64

         7.22 Subsidiaries; Guaranties. With respect to each Person which
becomes a Significant Subsidiary of the Company subsequent to the effective date
hereof, within thirty days of the date of Company's delivery of the financial
statements required under Section 7.3(b) or 7.3(c) which establish that such
Person is or has become a Significant Subsidiary (but in any event, in the case
of a Permitted Borrower, prior to the time such Permitted Borrower shall be
entitled to request any Advances hereunder), cause such Subsidiary to execute
and deliver to Agent, for and on behalf of each of the Banks, a Joinder
Agreement whereby such Significant Subsidiary becomes obligated as a Guarantor
under the Domestic Guaranty or the Foreign Guaranty, as applicable, together
with such supporting documentation, including without limitation corporate
authority items, certificates and opinions of counsel, as reasonably required by
Agent and the Majority Banks.

         7.23 Special Covenants for Leasing Program and Other Covenants. (a)
on or before November 30, 1999, enter into (i) amendments to the Note Purchase
Agreements, if then outstanding, on substantially the terms set forth herein
with respect to the funding and/or securitization of Leased Vehicles, and (ii)
amendments to the Collateral Documents necessary (in the reasonable
determination of the Agent, acting in its capacity as collateral agent under the
Intercreditor Agreement) to confirm the encumbrance thereunder of Leases and, to
the extent applicable, Leased Vehicles; and

                  (b) Other than (i) Leases with respect to motor vehicles
located outside the United States of America and its territories and possessions
or (ii) Leases originated by CAC Leasing prior to the date hereof or (iii)
Leases originated by AutoNet.net Finance Company to the extent applicable state
law prohibits the Company from originating Leases in such state using an assumed
name, the Company will originate and hold all Leases in its own name or by using
the assumed name, CAC Leasing; and

                  (c) Promptly upon the Company's creation or acquisition of any
Significant Domestic Subsidiary, (i) grant a security interest and lien to the
Agent, for the benefit of the Banks, in the Collateral owned by such Significant
Domestic Subsidiary substantially on the terms set forth in the Security
Agreement, and (ii) pledge to the Agent, for the benefit of the Banks, all of
the outstanding capital stock of such Significant Domestic Subsidiary which is
owned by the Company or its Subsidiaries in a form satisfactory to the Agent,
acting in its capacity as collateral agent under the Intercreditor Agreement, in
its reasonable discretion, all to secure the Indebtedness.

         7.24 Year 2000 Requirement. The Company and its Subsidiaries shall
review the areas in their business and operations which could be materially
adversely affected by, and develop a program to address on a timely basis the
risk that, computer applications used by the Company and its Subsidiaries may be
unable to recognize and perform properly date-sensitive functions involving
certain dates prior to and any date after December 31, 1999. Any reprogramming
required to permit the proper functioning, in and following the year 2000,
computer systems and equipment containing embedded microchips owned or leased by
the Company or any of its Subsidiaries and the testing of all such systems and
equipment, as so reprogrammed, will be completed by June 30, 1999. The cost
to the Company and its Subsidiaries of such reprogramming and testing and of the
reasonably foreseeable consequences of year 2000 to the Company and its
Subsidiaries (including, without limitation, reprogramming errors and the
failure of others' systems or equipment) will not result in a Default or have a
material adverse effect on the Company and its Subsidiaries, taken as a whole.

                                       10
<PAGE>   65

                                  ATTACHMENT 5

                        "Selected Sections -- Section 8"

<PAGE>   66

         8. NEGATIVE COVENANTS

         Company and each of the Permitted Borrowers covenant and agree that, so
long as any of the Banks are committed to make any Advances under this Agreement
and thereafter so long as any Indebtedness remains outstanding, it will not, and
it will not allow its Subsidiaries (but excluding, for purposes of Sections
8.10, 8.13, 8.14 hereof, any Special Purpose Subsidiary), without the prior
written consent of the Majority Banks, to:

         8.1 Capital Structure and Redemptions. Purchase, acquire or redeem any
of its capital stock, except for a Permitted Repurchase; or make any material
change in its capital structure, provided however that the issuance of (i)
additional common stock or (ii) (if issued as part of or in connection with an
underwritten public offering) shares of other classes of capital stock of
Company or its Subsidiaries, or (iii) securities issued by a Special Purpose
Subsidiary pursuant to a Permitted Securitization, shall not constitute material
changes in capital structure.

         8.2 Business Purposes. Engage in, or make any investment in any
business engaged in, the provision of property and casualty insurance unless the
Company or such Subsidiary shall maintain reinsurance of its underwriting risk
with a third party(ies) rated "A-" or better by S&P or "A3" or better by Moody's
for all of the Company's or such Subsidiary's exposure in excess of one hundred
percent (100%) of the premiums written by the Company or such Subsidiary; or
engage in any business if, after giving effect thereto, the general nature of
the businesses of the Company and its Subsidiaries, taken as a whole, would no
longer be the provision of financing programs for the purchase or lease of used
motor vehicles, motor vehicle service protection programs, credit life, accident
and health insurance programs and other programs related to the foregoing (it
being understood that, in the course of the provision of such programs, the
Company may be obligated to remit monies held by it in connection with dealer
holdbacks, claims or refunds under insurance policies, or claims or refunds
under service contracts, and to make deposits in trust or otherwise as required
under reinsurance agreements or pursuant to state regulatory requirements);
provided however that the Company and its Subsidiaries shall manage and operate
such businesses in substantially the same manner that they are managed and
operated as of the date hereof.

         8.3 Mergers or Dispositions. Enter into any merger or consolidation,
except for any Permitted Merger OR Permitted Transfer under clause (iv)(z) of
the definition thereof, or sell, lease, transfer, relocate or dispose of all,
substantially all, or any material part of its assets, except for Permitted
Transfers and Permitted Securitization(s).

         8.4 Guaranties. Guarantee, endorse, or otherwise become liable for or
upon the obligations of others, except by endorsement of cash items for deposit
in the ordinary course of business and except for the Guaranties and the
Permitted Guaranties.

                                       1
<PAGE>   67

         8.5 Debt. Become or remain obligated for any indebtedness for borrowed
money, or for any indebtedness incurred in connection with the acquisition of
any property, real or personal, tangible or intangible, or for any other Debt,
except for:

                  (a) Indebtedness to Banks hereunder;

                  (b) current unsecured trade, utility or non-extraordinary
accounts payable arising in the ordinary course of Company's or any Subsidiary's
businesses;

                  (c) purchase money debt for fixed assets (including
capitalized leases or other non-cancelable leases having a term of twelve months
or longer) not to exceed an aggregate amount, for the Company and its
Subsidiaries incurred while in compliance with this Agreement and the other Loan
Documents, of Three Million Dollars ($3,000,000) (or the Alternative Currency
equivalent thereof) at any one time outstanding and mortgage debt incurred (by
assumption or otherwise) by Arlington Investment Company, a Subsidiary of the
Company, in an aggregate principal amount not to exceed $1,000,000.00 at any
time outstanding;

                  (d) the Senior Debt, Future Debt, Permitted CAC UK Debt, the
Subordinated Debt, unsecured overdraft lines of credit or similar credit
arrangements maintained by the Permitted Borrowers in the ordinary course of
business in the countries of their formation, in an amount not to exceed, in the
case of CAC UK, (pound)2,000,000 and in the case of each of the other Permitted
Borrowers, $1,500,000, or the equivalent thereof in an Alternative Currency,
lines of credit maintained by Arlington Investment Company, in the ordinary
course of business, in an aggregate amount not to exceed $5,000,000.00 at any
time outstanding, and such other debt set forth in Schedule 8.5 attached hereto,
if any (in addition to any other matters set forth in this Section 8.5), and any
renewals or refinancing of such indebtedness in amounts not exceeding the
scheduled amounts (less any required amortization according to the terms
thereof) on substantially the same terms and otherwise in compliance with this
Agreement;

                  (e) non-recourse Debt incurred by a Special Purpose Subsidiary
pursuant to a Permitted Securitization, whether or not attributable to the
Company under GAAP; and

                  (f) debt consisting of interest rate protection agreements
(including interest rate caps, collars or swaps) or foreign currency exchange
agreements (including foreign currency hedges and swaps) entered into by the
Company and/or a Permitted Borrower, to manage existing or anticipated interest
rate or foreign exchange rate risk and not for speculative purposes (copies of
which shall be provided to the Agent promptly upon the execution thereof), and
other Debt for borrowed money in an amount not to exceed in the aggregate for
the Company and its Subsidiaries at any time outstanding, the sum of Five
Million Dollars ($5,000,000) (or the Alternative Currency equivalent thereof),
which Debt shall be unsecured except to the extent of any Lien permitted under
Section 8.6(d) hereof.

                                       2
<PAGE>   68

         8.6 Liens. Permit or suffer any Lien to exist on any of its properties,
real, personal or mixed, tangible or intangible, whether now owned or hereafter
acquired, except:

                  (a) in favor of Agent, as security for the Indebtedness and
any Liens granted to the holders of Senior Debt (and, to the extent applicable,
Future Debt under clause (x) of the definition thereof) pursuant to Collateral
Documents, on an equal and ratable basis with comparable Liens granted to Agent,
for and on behalf of the Banks;

                  (b) purchase money security interests in fixed assets to
secure the purchase money indebtedness permitted in Section 8.5(c) hereof,
provided that each such security interest is created substantially
contemporaneously with the acquisition of such fixed assets and does not extend
to any property other than the fixed asset so financed and provided further that
the sum of all such purchase money indebtedness outstanding at any time shall
not exceed the aggregate amount set forth in Section 8.5(c) hereof and mortgage
debt identified in Section 8.5(c) encumbering that certain land and building
currently leased to Arlington Investment Company by MP Developers;

                  (c) Permitted Liens and any Lien encumbering property
interests, rights or proceeds which are the subject of a transfer or encumbrance
pursuant to a Permitted Securitization; and

                  (d) Liens on the property of Company or any of its
Subsidiaries other than Advances to Dealers, Leased Vehicles, Installment
Contracts, Leases or property related thereto, not otherwise permitted under
subparagraphs (a) through (c) of this Section 8.6 if the obligations secured by
such Liens do not exceed, in an aggregate amount from time to time outstanding,
the difference between (i) Twenty Percent (20%) of Consolidated Tangible Net
Worth of Company and (ii) the sum of (w) the aggregate obligations secured by
Liens permitted under subparagraph (b) of this Section 8.6, (x) the aggregate
obligations secured by Permitted Liens disclosed on Schedule 8.6 attached
hereto, and (y) the aggregate amount of Debt of the Subsidiaries of Company
(other than Special Purpose Subsidiaries), all as of the applicable date of
determination.

         8.7 Acquisitions. Other than any Permitted Acquisition or any
acquisition of any rights or property pursuant to a Permitted Securitization,
purchase or otherwise acquire or become obligated for the purchase of all or
substantially all of the assets or business interests of any Person, firm or
corporation, or any shares of stock (or other ownership interests) of any
corporation, trusteeship or association, or any business or going concern, or in
any other manner effectuate or attempt to effectuate an expansion of present
business by acquisition.

         8.8 Investments. Make or allow to remain outstanding any Investment in,
or any loans or advances to, any Person, firm, corporation or other entity or
association, other than:

                  (a) any loan or other advance by Company or a Subsidiary, as
the case may be, to any and all of its officers or employees, as the case may
be, in the normal course of business, so

                                       3
<PAGE>   69

long as the aggregate of all such loans or advances by the Company and its
Subsidiaries does not exceed One Million Five Hundred Thousand Dollars
($1,500,000) (or the equivalent thereof in an Alternative Currency) at any time
outstanding, plus reasonable, reimbursable business and travel expenses;

                  (b) Permitted Investments at any time outstanding or in
effect;

                  (c) Investments in Company's Subsidiaries existing as of the
date of this Agreement;

                  (d) Investments from and after the date hereof in any
Subsidiary or any Person that concurrently with such Investment becomes a
Subsidiary, in an aggregate amount for all such Investments at any time
outstanding, not to exceed in the aggregate twenty five percent (25%) of
Company's Consolidated Tangible Net Worth (it being understood that loans and
advances to any Subsidiary by any Person other than the Company or any other
Subsidiary, regardless of whether such loans and advances are guaranteed by the
Company or any other Subsidiary, shall not be taken into account in determining
the aggregate amount of investments made pursuant to this clause (d));

                  (e) Floor Plan Receivables and Notes Receivable in an
aggregate amount at any time outstanding not to exceed ten percent (10%) of
Consolidated Total Assets;

                  (f) Advances to Dealers, Leased Vehicles and, subject to the
limitation contained in subparagraph (e) of this Section 8.8, receivables
arising from the sale or lease of goods and services by the Company or its
Subsidiaries, in each case in the ordinary course of business of Company and its
Subsidiaries;

                  (g) Permitted Acquisition(s), to the extent any such
acquisition shall be deemed to constitute an Investment;

                  (h) Those Investments set forth on the attached Schedule 8.8;

                  (i) Investments in any Subsidiary (including, without
limitation, any Special Purpose Subsidiary) from and after the date hereof,
consisting of (w) dispositions of specific Advances to Dealers, Leased Vehicles,
Installment Contracts (whether assigned outright or related to Advances to
Dealers) or Leases (whether assigned outright or related to Leased Vehicles)
made pursuant to a Permitted Securitization and the resultant Debt issued by a
Special Purpose Subsidiary to another Subsidiary as part of a Permitted
Securitization, in each case to the extent constituting Investments hereunder;
(x) advances by Company (as servicer) which are permitted under the definition
of Permitted Guaranties; (y) the repurchase or replacement from and after the
date hereof of an aggregate amount not to exceed $5,000,000 in Advances to
Dealers, Leased Vehicles, Installment Contracts (whether assigned outright or
related to Advances to Dealers) or Leases (whether assigned outright or related
to Leased Vehicles) subsequently determined not to satisfy the

                                       4
<PAGE>   70

eligibility standards contained in the applicable Securitization Documents
relating to a Permitted Securitization, so long as (i) such replacement is
accompanied by the repurchase of or release of encumbrances on such financial
assets previously transferred or encumbered pursuant to such securitization and
in the amount thereof, (ii) any replacement Advances to Dealers, Leased
Vehicles, Installment Contracts (whether assigned outright or related to
Advances to Dealers) or Leases (whether assigned outright or related to Leased
Vehicles) are selected by Company according to the requirements set forth in
clause (a) of the definition of Permitted Securitization and (iii) such
replacements are made at a time when (both before and after giving effect
thereto) no Default or Event of Default has occurred and is continuing; (z)
amounts required to fund any Cleanup Call under the terms of such Permitted
Securitization, and (zz) the disposition to the Company or any Subsidiary
(other than a Special Purpose Subsidiary) of the capital stock of any Special
Purpose Subsidiary; and

                  (j) Investments, other than those set forth in subparagraphs
(a) through (h) above, in an aggregate amount at any time outstanding not to
exceed Two Million Five Hundred Thousand Dollars ($2,500,000), or the equivalent
thereof in an Alternative Currency.

In valuing any Investments for the purpose of applying the limitations set forth
in this Section 8.8 (except as otherwise expressly provided herein), such
Investment shall be taken at the original cost thereof, without allowance for
any subsequent write-offs or appreciation or depreciation, but less any amount
repaid or recovered on account of capital or principal.

         8.9 Accounts Receivable. Except to Agent on behalf of the Banks or
pursuant to a Permitted Securitization, sell or assign any account, note or
trade acceptance receivable, if the sum of (i) the face value of the account,
note or trade acceptance receivables proposed to be transferred, plus (ii) the
face value of account, note or trade acceptance receivables transferred by the
Company and its Subsidiaries during the then current fiscal year of the Company
would exceed five percent (5%) of the face value of the account, note and trade
acceptance receivables of the Company and its Subsidiaries determined on a
Consolidated basis as of the end of the most recently concluded fiscal year of
the Company prior to giving effect to any such transfer.

         8.10 Transactions with Affiliates. Enter into any transaction with any
of its stockholders or officers or its Affiliates (including without limitation
affiliated Dealers), except in the ordinary course of business and on terms not
materially less favorable than would be usual and customary in similar
transactions between Persons dealing at arm's length.

         8.11 No Further Negative Pledges. Enter into or become subject to any
agreement (other than loan documents evidencing or otherwise related to the
Senior Debt, the Future Debt, the Permitted CAC UK Debt, lines of credit
maintained by Arlington Investment Company and permitted under Section 8.5(d)
hereof (but limited to Arlington Investment Company or the property and assets
of Arlington Investment Company) or unsecured overdraft lines of credit or
similar credit arrangements maintained by the Permitted Borrowers in the
ordinary course of

                                       5
<PAGE>   71

business in the countries of their formation (but limited to the applicable
Permitted Borrower or the property and assets of the applicable Permitted
Borrower)or any purchase money Debt permitted under this Agreement or the other
Loan Documents, but only to the extent of the property acquired with the
proceeds of such purchase money Debt, and other than pursuant to any of the
Securitization Documents, but only to the extent of the Advances to Dealers,
Leased Vehicles, Installment Contracts or Leases, and the other rights and
property transferred or encumbered in connection with the Permitted
Securitization covered by such Securitization Documents) (i) prohibiting the
guaranteeing by the Company or any Subsidiary of any obligations, (ii)
prohibiting the creation or assumption of any lien or encumbrance upon the
properties or assets of the Company or any Subsidiary, whether now owned or
hereafter acquired, or (iii) requiring an obligation to become secured (or
further secured) if another obligation is secured or further secured. [Changes
in this Section to be given retroactive effect to 7/1/98].

         8.12 Prepayment of Debts. Except for Permitted Prepayments and the
Permitted Senior Note Prepayment, prepay, purchase, redeem or defease any Debt
for money borrowed, excluding, subject to the terms hereof, the Indebtedness,
and excluding paydowns from time to time of permitted working capital facilities
or other revolving debt and mandatory payments, prepayments or redemptions for
which Company or any Subsidiary is obligated as of the date hereof or, with
respect only to the Senior Debt or for any Future Debt, for which Company or any
Subsidiary becomes obligated after the date hereof or, with respect only to
Permitted Securitizations, any payment pursuant to a Cleanup Call.

         8.13 Amendment of Senior Debt or Future Debt Documents. Except with the
prior written approval of Agent and the Majority Banks, amend, modify or
otherwise alter (or suffer to be amended, modified or altered) or waive (or
permit to be waived) in any material respect, any documents or instruments
evidencing or otherwise related to Senior Debt or Future Debt so as to shorten
the original maturity date or amortization schedule thereof, or amend, modify or
otherwise alter (or suffer to be amended, modified or altered) any documents or
instruments evidencing or otherwise related to Senior Debt or Future Debt to
include (or enter into any Future Debt Documents which include) any covenants or
other provisions, other than a provision not more onerous to the Company than
Section 6.18 of the note purchase agreements governing the Senior Debt as in
effect on the date hereof, that require, for the amendment of any term or
provision of this Agreement, or the waiver of any term or provision hereof, the
approval or consent of any other creditor of the Company.

         8.14 Amendment of Subordinated Debt Documents. Amend, modify or
otherwise alter (or suffer to be amended, modified or altered) any of the
material terms and conditions of those documents or instruments evidencing or
otherwise related to Subordinated Debt or waive (or permit to be waived) any
such provision thereof in any material respect, without the prior written
approval of Agent and the Majority Banks. For purposes of those documents and
instruments evidencing or otherwise related to the Subordinated Debt, any
increase in the original interest rate or principal amount, any shortening of
the original amortization, any change in any default, remedial or other

                                       6
<PAGE>   72

repayment terms, any change in or waiver of conditions contained therein which
are required under or necessary for compliance with this Agreement or the other
Loan Documents or any change in the subordination provisions contained therein,
shall (without reducing the scope of this Section 8.14) be deemed to be
material.

         8.15 Limitation on Dividends. Declare, make or otherwise set apart,
directly or indirectly, any funds or other property for, or incur any liability
to make any dividend or other distribution, direct or indirect and whether
payable in cash or property, on account of any capital stock or other equity
interest of the Company or any of its Subsidiaries, except to the extent that
any such dividend or distribution (i) is payable to the Company or any of its
Subsidiaries or (ii) is payable solely in capital stock or other equity
interests of the Company or any such Subsidiary (other than any Special Purpose
Subsidiary), unless, at the time of such action (and giving effect thereto) such
dividend or distribution is permitted under Section 2.5 of each of the
amendments to the note agreements which constitute Senior Debt Documents
executed concurrently with the execution of the Second Amendment to this
Agreement (the "December 1997 Note Agreement Amendments"), as such note
agreements are presently in effect (after giving effect to the December 1997
Note Agreement Amendments) without giving effect to any subsequent amendments,
modifications or waivers thereof, except to the extent expressly provided in
Section 2.6 of the December 1997 Note Agreement Amendments.

         8.16 Securitization Transaction; Amendments to Securitization
Documents. Engage in a Securitization Transaction, other than a Permitted
Securitization and once executed and delivered pursuant to a Permitted
Securitization, amend, modify or otherwise alter any of the material terms and
conditions of any Securitization Documents or waive (or permit to be waived) any
such provision thereof in any material respect, adverse to the Company or any
Subsidiary, without the prior written approval of Agent and the Majority Banks.
For purposes of such documents and instruments, "material" and "materially"
shall be deemed to relate solely to recourse, Cleanup Calls or any change in or
waiver of conditions contained therein which are required under or necessary for
compliance with this Agreement. For purposes of the Securitization Documents,
the "material terms and conditions" thereof shall be deemed solely those terms
or conditions with respect to servicer fees, servicer expenses, defaults, events
of default, recourse to the Company or any Subsidiary (other than a Special
Purpose Subsidiary), Cleanup Calls or conditions contained therein which are
required under or necessary for compliance with this Agreement.

                                       7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]