Document:

<PAGE>

                                                                     EXHIBIT 4.2

                               AMENDMENT NO. 2 TO
                AMENDED AND RESTATED SECOND LIEN CREDIT AGREEMENT

          Amendment No. 2 (this "Amendment"), dated as of April 9, 2007, among
Tecumseh Products Company, a Michigan corporation (the "Borrower"), Tricap
Partners II L.P., as Lender (the "Lender"), Tricap Partners II GP L.P. as
Administrative Agent (the "Administrative Agent") and Citicorp USA, Inc., as
Collateral Agent for the Secured Parties (in such capacity, the "Collateral
Agent"), amends certain provisions of the Amended And Restated Second Lien
Credit Agreement, dated as of November 13, 2006 (as the same has heretofore been
amended, as amended hereby, and as it may be further amended, supplemented or
otherwise modified from time to time, the "Credit Agreement"), among the
Borrower, the Lender, the Administrative Agent and the Collateral Agent.

                                   WITNESSETH:

          WHEREAS, the Borrower has informed the Lender that (A) a TMT
Enforcement Remedy has occurred and is continuing and (B) on March 22, 2007, TMT
commenced a bankruptcy proceeding in Brazil, which in the case of each of clause
(A) and (B) above constitutes an Event of Default under Section 9.1(e) and
Section 9.1(f) of the Credit Agreement, respectively (collectively, the
"Existing Defaults"); and

          WHEREAS, the Borrower has requested that the Administrative Agent and
the Lenders constituting the Requisite Lenders waive the Existing Defaults; and

          WHEREAS, the Borrower has informed the Lender of its desire to enter
into certain agreements or take certain action in connection with TMT and the
TMT Indebtedness; and

          WHEREAS, the Lender and the Administrative Agent have agreed, subject
to the conditions herein provided, to waive the Existing Defaults; and

          WHEREAS, the Borrower has requested, and the Lender, the
Administrative Agent and the Collateral Agent have agreed, subject to the
conditions herein provided, to amend the Credit Agreement as set forth below;

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

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

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

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

               "Additional Cash Rate" means: 2.5 % per annum.

<PAGE>

               "Amendment No. 2 to the Credit Agreement" means that certain
     Amendment No. 2 to Amended and Restated Second Lien Credit Agreement, dated
     as of April 9, 2007, entered into by the Borrower, the Lender, the
     Administrative Agent, and the Collateral Agent.

               "CEO" means the new chief executive officer of the Borrower.

               "Cross-Over Vendors" means those certain vendors of TMT that are
     also vendors to (i) the Borrower's U.S. engine business or (ii) TdB.

               "Effective Date" means April 9, 2007.

               "Operations Advisor" means (i) AlixPartners or AP Services, LLC
     or (ii) a nationally recognized financial operations consulting or
     management firm acceptable to the Administrative Agent.

               "Professional Fees" means all fees, costs and expenses of each of
     AP Services, LLC (other than those payable in consideration of the services
     of Jim Bonsall as interim chief operating officer), BBK, Ltd., Rothschild
     (other than transaction based fees, when and as paid, payable upon
     completion of the sale of assets for which it was engaged), Galeazzi,
     Brazilian consultant engaged in connection with TdB financing, and other
     material financial and investment banking service providers. Borrower has
     previously delivered to Lender copies of the engagement letters for all
     material financial and investment banking service providers engaged by the
     Borrower or its Subsidiaries as of the date hereof, together with a
     description of the terms of their engagements.

               "Restructuring Payments" means all amounts advanced, or directly
     incurred and paid by the Borrower or any of its Subsidiaries (other than
     TMT) in connection with the TMT Restructuring, including specifically (i)
     the reasonable fees and costs of Brazilian restructuring counsel and
     financial advisors for TMT and (ii) payments of liabilities of TMT,
     provided that (1) no Restructuring Payments are made prior to the date that
     they are legally required to be paid; (2) funds of TMT are not otherwise
     available to make such Restructuring Payments; (3) Restructuring Payments
     are either (A) required to be made in order to avoid personal liability of
     TMT management or liability of TdB for claims against TMT, or (B) otherwise
     reasonably necessary for the orderly administration of the TMT
     Restructuring; (4) such payments or advances are structured to the fullest
     extent possible to permit recovery thereof by Borrower and its Subsidiaries
     as priority claims in the TMT Restructuring; and (5) the aggregate amount
     of all Restructuring Payments shall not exceed $6,500,000.

               "Settlement Agreement" means that certain Settlement and Release
     Agreement, dated as of April 2, 2007, entered into by the Borrower, the

<PAGE>

     Herrick Entities (as defined therein) and the Defendant Directors (as
     defined therein) attached hereto as Exhibit C.

               "TdB" means Tecumseh do Brasil Ltda.

               "TMT Restructuring" means and includes any or all of: (a)(i)
     TMT's commencement of a voluntary case under the bankruptcy laws or
     equivalents thereof (as now or hereafter in effect) of Brazil, (ii) TMT's
     filing of a petition seeking to take advantage of any other laws, domestic
     or foreign, relating to bankruptcy, insolvency, reorganization, winding up
     or composition or adjustment of debts, (iii) TMT's consent to, or failure
     of TMT to contest, any petition filed against it in an involuntary case
     under such bankruptcy laws or other laws, (iv) TMT's application for or
     consent to, or failure to contest, the appointment of, or the taking of
     possession by, a receiver, custodian, trustee, or liquidator of itself or
     of a substantial part of its property, domestic or foreign, (v) TMT's
     admission in writing of its inability to pay its debts as they become due,
     and (vi) TMT's making of a general assignment for the benefit of creditors.

               "TPIL" means Tecumseh Power International Limited, a company
     incorporated under the laws of the United Kingdom

               "Warrants" means warrants in substantially the form attached
     hereto as Exhibit A to purchase a number of shares of Class A Common Stock
     equal to 7% of the fully diluted Common Stock of Borrower, at a per share
     price equal to 65% of the lowest daily closing price of the Class A Common
     Stock for the period commencing March 27, 2007 and ending twelve months
     following the Second Amendment Effective Date, which warrants shall expire
     unless exercised on or before the fifth anniversary of the Second Amendment
     Effective Date.

          (b) Clause (b) in the definition of "Change of Control" is hereby
deleted in its entirety and replaced with the following in lieu thereof:

               or (b) during any period of twelve consecutive calendar months,
     individuals who, as of the Effective Date, constituted the board of
     directors of the Borrower (together with any new directors whose election
     by the board of directors of the Borrower or whose nomination for election
     by the stockholders of the Borrower was approved by a vote of at least
     two-thirds of the Independent Directors (as such term is defined in
     Marketplace Rule 4200(a)(15) of The NASDAQ Stock Market LLC ("Nasdaq"), or
     a comparable successor rule of Nasdaq, whether or not the securities of
     Borrower are listed on Nasdaq) then still in office who either were
     Independent Directors at the beginning of such period or whose elections or
     nomination for election was previously so approved) cease for any reason
     other than death or disability to constitute a majority of the directors
     then in office.

<PAGE>

          (c) The definition of "EBITDA" in Section 1.1 of the Credit Agreement
is hereby amended as follows:

               (i) by deleting clause (b)(ix)(y) in its entirety and inserting
          the following in lieu thereof:

                    (y)(a) BBK, Ltd. and AP Services, LLC, financial advisors to
               the Loan Parties and Korn/Ferry International, in connection with
               certain financial and management search services provided to the
               Loan Parties, (b) financial advisors to the First Lien Lenders,
               and (c) Wachovia, Felsberg E Associados, Rothschild Inc., Miller,
               Canfield, Paddock and Stone, P.L.C., expenses of counsel to the
               First Lien Lenders and First Lien Administrative Agent, Kirkland
               & Ellis LLP, and Squire, Sanders & Dempsey L.L.P., in each case
               under this clause (y)(c) for work performed in March and April
               2007 but prior to the Effective Date and

               (ii) by deleting the proviso to clause (b)(ix) which reads
          "provided, however, all such fees and costs payable under clauses (x),
          (y) and (z) do not exceed $2,400,000 per Fiscal Quarter" and inserting
          in lieu thereof "provided, however, all such fees and costs payable
          under clauses (x), (y) and (z) do not exceed (i) $6,000,000 in the
          Fiscal Quarter ending March 31, 2007, (ii) $4,500,000 in the Fiscal
          Quarter ending June 30, 2007, and (iii) $2,400,000 per Fiscal Quarter
          for each Fiscal Quarter thereafter";

          (d) The following existing definitions are hereby deleted in their
entirety from the Credit Agreement:

               "TMT Guaranty Agreement" and "TMT Guaranty Conditions".

          (e) Article II Section 2.7(e) is hereby amended by deleting the
existing Section 2.7(e) in its entirety and inserting the following in lieu
thereof:

               (e) Additional Interest; Payments.

                    (i) If Borrower shall not have disposed of its Engine and
               Powertrain Products Segment (as reported on the Financial
               Statements) on or before December 31, 2007, additional PIK
               interest shall accrue on the Loan at the Additional PIK Rate from
               and after January 1, 2008.

                    (ii) If the Borrower shall not have engaged and have in
               place the CEO on or before May 1, 2007, additional cash interest
               shall accrue on the Loan at the Additional Cash Rate during the
               period beginning on May 1, 2007 and ending on that date on which
               the CEO assumes his duties with the Borrower, provided, however,
               that no such cash interest shall accrue if the failure to meet
               such deadline is as a result of (x) the inability of an engaged
               candidate to undertake his duties by such date due to a personal
               emergency on the part of the candidate or (y) the inability to
               reach

<PAGE>

               agreement with a candidate on the terms of employment despite the
               Borrowers best commercially reasonable efforts to do so.

                    (iii) Interest (a) accrued at the Additional PIK Rate under
               this clause (e) will be added to the principal amount outstanding
               under the Loan on the last day of each calendar month and (b)
               accrued at the Additional Cash Rate shall be payable in cash on
               the last day of each calendar month.

          (f) Article V (Financial Covenants) of the Credit Agreement is hereby
amended as follows:

               (i) Section 5.2 of the Credit Agreement is hereby amended as
          follows:

                    (1) by deleting the number "$50,000,000" set forth opposite
                    September 30, 2007 in the table under the heading "Minimum
                    Cumulative EBITDA" and inserting "$40,000,000" in lieu
                    thereof; and

                    (2) by deleting the number "$80,000,000" set forth opposite
                    December 31, 2007 in the table under the heading "Minimum
                    EBITDA and inserting "$60,000,000" in lieu thereof

               (ii) Section 5.3 of the Credit Agreement is hereby amended in its
          entirety as follows:

          Section 5.3 Capital Expenditures

               (a) The Borrower shall not make or incur, or permit to be made or
          incurred, Capital Expenditures (it being understood that any Capital
          Expenditures financed solely through the proceeds obtained from
          property loss insurance shall not be covered under this Section 5.3),
          during the four Fiscal Quarters ending on the last day of each Fiscal
          Quarter set forth below to be, in the aggregate, in excess of the
          maximum amount set forth opposite such Fiscal Quarter:

<TABLE>
<CAPTION>
  FISCAL QUARTER     MAXIMUM CAPITAL EXPENDITURES
  --------------     ----------------------------
<S>                  <C>
  March 31, 2007             $52,100,000
  June 30, 2007              $49,300,000
September 30, 2007           $46,500,000
December 31, 2007            $40,000,000
  March 31, 2008             $43,800,000
  June 30, 2008              $47,500,000
September 30, 2008           $51,300,000
December 31, 2008            $55,000,000
  March 31, 2009             $58,800,000
</TABLE>

<PAGE>

<TABLE>
<S>                  <C>
  June 30, 2009              $62,500,000
September 30, 2009           $66,300,000
</TABLE>

               (b) For purposes of Section 5.3(a), the aggregate Capital
          Expenditures in connection with the acquisition, construction and
          startup of the new plant to replace the Hyderabad facility covered by
          this Section 5.3 and counted toward the limits established in Section
          5.3(a) above shall be equal to the amount calculated as follows:

                                   X - Y = CCE

                    Where

               X is the aggregate Capital Expenditures in connection with the
               acquisition, construction and startup of the new Hyderabad Indian
               plant;

               Y is the Net Cash Proceeds from the sale of the current Hyderabad
               Indian plant and realty; and

               CCE is the amount of Capital Expenditures charged against the
               amounts set forth opposite the applicable period in the chart in
               Section 5.3(a) above;

          provided, however, that (1) in no event shall the Capital Expenditures
          amount set forth above for any period be increased in the event CCE is
          a negative number and (2) in no event shall the aggregate Capital
          Expenditures in connection with the acquisition, construction and
          startup of the new Hyderabad Indian plant exceed $25,000,000 and (3)
          all such Capital Expenditures shall be funded solely by financial
          institutions located in India.

               (c) In the event that the Borrower completes the sale or
          disposition of one or more Subject Units, the Borrower shall promptly
          provide Lender with a schedule of the budgeted Capital Expenditures
          for such Subject Units for the periods following the date of
          consummation of such sale, and the amounts set forth for such periods
          in clause (a) above shall be, subject to the prior review by and
          approval of the Administrative Agent, correspondingly reduced

          (g) by inserting a new Section 5.4 immediately after the existing
Section 5.3 to read as follow:

               5.4 Professional Fees

               For each Fiscal Quarter during the period beginning on the Second
          Amendment Effective Date and ending on that date on which the CEO
          assumes his or her duties with the Borrower, neither the Borrower nor
          its Subsidiaries, on a consolidated basis, shall make or incur, or
          permit to be made or incurred, Professional Fees during each Fiscal
          Quarter set forth below, in excess of the maximum amount set forth
          opposite such Fiscal Quarter. Notwithstanding the introductory
          paragraph to this Article V, any amendments to or waivers of the

<PAGE>

          provisions of this Section 5.4 shall not require the consent of the
          Requisite Lenders but only of the Administrative Agent.

<TABLE>
<CAPTION>
FISCAL QUARTER ENDING   MAXIMUM PROFESSIONAL FEES
---------------------   -------------------------
<S>                     <C>
    June 30, 2007              $7,431,000
  September 30, 2007           $3,160,000
  December 31, 2007            $1,683,000
</TABLE>

          (h) Article VII (Affirmative Covenants) of the Credit Agreement is
hereby amended as follows:

               (i) by deleting the introductory paragraph therein and inserting
          the following in lieu thereof:

                    The Borrower agrees with the Lenders and the Administrative
               Agent to each of the following (except that the following shall
               have no application to (x) Tecumseh Italy as long as the Borrower
               is diligently pursuing the dissolution or liquidation of Tecumseh
               Italy, (y) TMT so long as there is a TMT Restructuring or (z)
               TPIL so long as any Loan Party is pursuing the discontinuance of
               operation and liquidation of TPIL provided such discontinuance
               and liquidation is funded entirely from existing funds available
               to TPIL or funds from the proceeds of the sale or liquidation of
               TPIL's assets), as long as any Obligation remains outstanding
               and, in each case, unless the Requisite Lenders otherwise consent
               in writing:

               (ii) by inserting the following immediately after the term
          "Borrower" and immediately preceding the period in Section 7.14(a)

                    , it being understood that the Borrower shall not engage a
               new CEO unless such person shall have been recommended to the
               Borrower's board of directors by a majority of the membership of
               the Advisory Board

               (iii) by deleting in its entirety Section 7.14(b) and inserting
          the following in lieu thereof:

                    (b) Concurrently with the Borrower's engagement of the CEO,
               any person holding such position shall resign, or the Borrower's
               board of directors shall remove such person, from the position of
               chief executive officer.

               (iv) by inserting a new section 7.14(c) immediately after the
          existing Section 7.14(b) to read as follows:

                    (c) At all times prior to the engagement of a new CEO, the
               Borrower shall maintain an interim chief operating officer of the
               Borrower who shall be a person from a nationally recognized
               operations consulting

<PAGE>

               or management firm and the Borrower shall provide the
               Administrative Agent with not less than thirty (30) days' advance
               notice of such change in staffing of the chief operating officer
               position, which notice shall include the name of the person to
               serve and the company that will be providing his services.

               (v) by inserting a new section 7.14(d) immediately after the
          existing Section 7.14(c) to read as follows:

                    (d) From and after the Second Amendment Effective Date the
               Borrower undertakes and agrees to use all reasonable efforts to
               engage the CEO and have him or her in place on or prior to July
               1, 2007 and, in the event the CEO is not engaged and in place by
               such date, the Borrower will continue to use all reasonable
               efforts until the CEO is engaged and in place.

               (vi) by inserting a new Section 7.20 immediately after the
          existing Section 7.19 to read as follows:

                    On or before the Effective Date, the Borrower's President
               and Chief Operating Officer shall deliver to the Lender a letter
               with regard to the Borrower's efforts to address certain
               operational items. During the period beginning on the Effective
               Date and ending on the date on which the CEO assumes his or her
               duties with the Borrower, the Borrower shall deliver to the
               Lender copies of all reports (other than any portions thereof
               containing attorney-client or other privileged information)
               regarding the items set forth in the above-referenced letter
               prepared by outside professionals engaged in connection therewith
               or by management of the Borrower or its Subsidiaries within 3
               Business Days of delivery of the same to the Borrower's board of
               directors.

               (vii) By inserting a new Section 7.21 immediately after the new
          Section 7.20 to read as follows:

               Section 7.21 Retention of the Operations Advisor

               The Borrower shall retain the services of an Operations Advisor,
          at all times after the Effective Date, and through the date on which a
          new Chief Executive Officer of the Borrower has been appointed (and
          such Chief Executive Officer has commenced his/her duties) and for so
          long thereafter as the Chief Executive Officer shall determine in good
          faith to be necessary or advisable.

          (i) Article VIII (Negative Covenants) of the Credit Agreement is
hereby amended as follows:

               (i) by deleting the introductory paragraph therein and inserting
          the following in lieu thereof:
<PAGE>

                    The Borrower agrees with the Lenders and the Administrative
               Agent to each of the following (except that (A) the following
               shall have no application to (x) Tecumseh Italy as long as the
               Borrower is diligently pursuing the dissolution or liquidation of
               Tecumseh Italy or (y) TPIL so long as any Loan Party is pursuing
               the discontinuance of the operation and liquidation of TPIL
               provided such discontinuance and liquidation is funded entirely
               from existing funds available to TPIL or from the proceeds of the
               sale or liquidation of TPIL's assets and (z) TMT so long as there
               is a pending TMT Restructuring, provided, however that (B)
               neither the Borrower nor any of its Subsidiaries shall be allowed
               to provide any financial, credit or other support to TMT pursuant
               to the exceptions to the restrictions imposed on the Borrower and
               its Subsidiaries under Article VIII (Negative Covenants), except
               as expressly provided in Section 8.20), as long as any Obligation
               remains outstanding and, in each case, unless the Requisite
               Lenders otherwise consent in writing:

               (ii) by (A) striking the word "or" immediately following the
          semicolon in clause (k) of Section 8.1, (B) striking the period at the
          end of clause (l) of Section 8.1 and inserting "; and" in lieu
          thereof, and (c) inserting a new clause (m) to read as follows:

                    (m) Indebtedness (not otherwise permitted by this Section
               8.1) incurred by TdB at any time after the Effective Date;
               provided, however, such Indebtedness shall not exceed an
               aggregate amount of $40,000,000 and, provided, further, that not
               less than $25,000,000 of such Indebtedness shall be utilized to
               refinance the TdB BNDES facility that matured in March 2007.

               (iii) by (A) striking the word "and" immediately following the
          semicolon in clause (g) of Section 8.2, (B) striking the period at the
          end of clause (h) of Section 8.2 and inserting "; and" in lieu
          thereof, and (c) inserting a new clause (i) to read as follows:

                    (i) Liens on the assets of TdB securing additional
               Indebtedness of TdB permitted under Section 8.1(m)

               (iv) By inserting the following new Section 8.20 immediately
          after the existing Section 8.19 to read as follows:

                    Neither the Borrower nor any of its Subsidiaries shall (i)
               in respect of TMT, incur or suffer to exist any Indebtedness
               (other than Indebtedness existing immediately prior to the
               Effective Date), (ii) make any additional Investment in TMT or
               transfer of assets to TMT (other than payments made (x) to
               Cross-Over Vendors described in clause (i) of such definition so
               long as such payments do not exceed in the aggregate $2,500,000,
               (y) to Cross-Over Vendors described in clause (ii) of such
               definition so long as such payments do not exceed in the
               aggregate

<PAGE>

               $1,000,000, and (z) for purchases of inventory and equipment by
               the Borrower or any of its Subsidiaries from TMT so long as such
               purchases are made for Fair Market Value and on a basis no less
               favorable to the Borrower or, as the case may be, such Subsidiary
               thereof as would be obtained in comparable arm's length
               transactions with a Person that is not an Affiliate of TMT, (iii)
               pay any Indebtedness or other obligations of TMT, or (iv)
               otherwise provide any additional funding, financing or credit to
               TMT; provided, however, that the foregoing prohibition shall not
               limit the ability of the Borrower or any of its Subsidiaries to
               make the Restructuring Payments.

          (j) Article IX of the Credit Agreement is hereby amended as follows:

               (i) by deleting the introductory clause thereof and inserting the
          following in lieu thereof:

                    Each of the following events shall be an Event of Default
               (except that the following shall have no application to (x)
               Tecumseh Italy as long as the Borrower is diligently pursuing the
               dissolution or liquidation of Tecumseh Italy, (y) TPIL so long as
               any Loan Party is pursuing the discontinuance of the operation
               and liquidation of TPIL provided such discontinuance and
               liquidation is funded entirely from existing funds available to
               TPIL or from the proceeds of the sale or liquidation of TPIL's
               assets or (z) TMT so long as a TMT Restructuring is pending):

               (ii) by deleting in clause 9.1(d)(i) the word "or" immediately
          before "Article VII (Negative Covenants)" and inserting immediately
          after "Section 7.18 (Transfer and Termination of Title IV Plans)" and
          prior to "or Article VII (Negative Covenants)" the following:

                    or Section 7.21 (Retention of the Operations Advisor)

               (iii) by deleting the word "or" following the semicolon in clause
          (l) of Section 9.1; and:

               (iv) by deleting the period at the end of clause (m) of Section
          9.1 and inserting "; or" in lieu thereof; and

               (v) by inserting a new clause (n) in Section 9.1 to read as
          follows:

                    (n) There shall occur a breach of the provisions of Sections
               1, 2, 3 or 5 of the Settlement Agreement which breach shall
               remain unremedied for 30 days.

          (k) Annex A to the definition of Disposition Adjustment is amended by
deleting the charts on the existing Annex A thereto and inserting the charts on
attached Annex A in lieu thereof.

<PAGE>

     3. WAIVER AND CONSENT.

          (a) As of the Second Amendment Effective Date, the Lender and the
Administrative Agent hereby waive the Existing Defaults.

          (b) The Administrative Agent and the Lender hereby waive any default
interest chargeable on the Loans pursuant to Section 2.7 (f) solely in respect
of the Existing Defaults

          (b) The Lender hereby consents to the Borrower's request for a one
time extension of the delivery date of the annual report for the Fiscal Year
ended December 31, 2006, due within 90 days after the end of such Fiscal Year
pursuant to Section 6.1(c) of the Credit Agreement, to April 15, 2007.

     4. CONDITIONS PRECEDENT TO THE EFFECTIVENESS OF THIS AMENDMENT. This
Amendment shall become effective as of March 31, 2007 on the date (the "Second
Amendment Effective Date") when the Administrative Agent shall have received all
of the following, each of which shall be in form and substance satisfactory to
the Administrative Agent:

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

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

               (ii) the Consent of Guarantors, in the form attached hereto as
Exhibit B, executed by each Guarantor;

               (iii) Amendment No. 5 to the First Lien Credit Agreement,
executed by the Borrower and the First Lien Secured Parties;

               (iv) the Warrants; and

               (v) such additional documentation as the Lender may reasonably
require.

          (b) Payment of Fees, Costs and Expenses. The Administrative Agent
shall have received payment of all fees, costs and expenses as required by
Sections 9 and 10 hereof, including, without limitation, all fees, costs and
expenses of the Administrative Agent (including, without limitation, the
reasonable fees and out-of-pocket expenses of counsel for the Administrative
Agent) in connection with this Amendment, the Credit Agreement and each other
Loan Document.

          (c) Expense Deposit. The Administrative Agent shall have received a
deposit in an amount equal to Two Hundred Fifty Thousand Dollars ($250,000) to
be applied by the Administrative Agent to the payment of fees, costs and
expenses payable to the Administrative Agent under Section 11.3 of the Credit
Agreement following the Second Amendment Effective Date, including, without
limitation, all fees, costs and expenses of the Administrative Agent

<PAGE>
(including, without limitation, the reasonable fees and out-of-pocket expenses
of counsel for the Administrative Agent).

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

          (e) No Default or Event of Default. After giving effect to this
Amendment and Amendment No. 5 to the First Lien Credit Agreement, no Default or
Event of Default shall have occurred and be continuing.

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

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

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

     6. RELEASE. Each of the Borrower and each Guarantor (A) acknowledges and
agrees that it has no defenses, counterclaim or offset to the amounts
outstanding under the Credit Agreement or the other Loan Documents and that it
has no actual or potential claim or cause of action against the Administrative
Agent or any Lender with respect to any matters through the Effective Date, and
(B) hereby waives and agrees not to assert any claims or causes of action
against the Administrative Agent, any Lender or any of their Affiliates, or any
of their respective officers, directors, employees, attorneys and agents, on any
theory of liability, whether known or unknown, matured or contingent,
including, without limitation, for special, indirect, consequential or punitive
damages, arising by virtue of any actions taken, actions omitted, or the
occurrence of any event prior to the Effective Date, arising out of or relating
to, or in connection with, this Amendment No. 2,  the Credit Agreement, the use
of the proceeds of any Loan, the other Loan Documents or any of the transactions
entered into in connection therewith or contemplated thereby.

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

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

     9. FEES. As consideration for the execution of this Amendment, the Borrower
agrees (a) to pay on the Second Amendment Effective Date to the Lender a fee
equal to $750,000, and (b) to issue the Warrants to the Lender on the Second
Amendment Effective Date.

     10. COSTS AND EXPENSES. The Borrower agrees to pay on demand on the Second
Amendment Effective Date all costs and expenses of the Administrative Agent
incurred from and after the Closing Date through and including the Second
Amendment Effective Date and payable to the Administrative Agent under Section
11.3 of the Credit Agreement, including, without limitation, all reasonable and
documented out-of-pocket costs and expenses of the Administrative Agent in
connection with the preparation, execution and delivery of this Amendment and
other instruments and documents to be delivered pursuant hereto, including the
reasonable and documented fees and out-of-pocket expenses of counsel and
financial advisor (including financial advisory fees and expenses payable
pursuant to the invoice presentable for

<PAGE>

payment on April 15, 2007 in the amount of $252,252.57) for the Administrative
Agent with respect thereto.

     11. GOVERNING LAW; COUNTERPARTS; MISCELLANEOUS.

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

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

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

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

          (e) Delivery of an executed signature page of this Amendment by
facsimile or by email in portable document format (.pdf) shall be effective as
delivery of an original manually executed counterpart hereof.

                            [signature pages follow]

<PAGE>

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

                                        Borrower

                                        TECUMSEH PRODUCTS COMPANY
                                        as Borrower

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

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

<PAGE>

Lender

                                        TRICAP PARTNERS II L.P.
                                        as Lender

                                        By: Tricap Partners II GP L.P.
                                        Its: General Partner

                                        By: Tricap Partners Ltd.
                                        Its: General Partner

                                        By: /s/ Gary Franko
                                            ------------------------------------
                                        Name: Gary Franko
                                        Its: Vice President

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

<PAGE>

Administrative Agent

                                        TRICAP PARTNERS II GP L.P.
                                        as Administrative Agent

                                        By: Tricap Partners Ltd.
                                        Its: General Partner

                                        By: /s/ Gary Franko
                                            ------------------------------------
                                        Name: Gary Franko
                                        Title: Vice President

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

<PAGE>

Collateral Agent

                                        Citicorp USA, Inc.,
                                        as Collateral Agent

                                        By: /s/ Matthew Clendenny
                                            ------------------------------------
                                        Name: Matthew Clendenny
                                              ----------------------------------
                                        Title: Vice President
                                               ---------------------------------

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

                                                                       EXHIBIT A

                                    WARRANTS

                                 (SEE ATTACHED)

         [EXHIBIT A TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]
<PAGE>

                                                                       EXHIBIT B

                              CONSENT OF GUARANTORS

                                                       Dated as of April 9, 2007

          Each of the undersigned companies, as a Guarantor under the Guaranty
dated November 13, 2006 (the "Guaranty") in favor of the Secured Parties under
the Credit Agreement referred to in the foregoing Amendment, hereby consents to
such Amendment and hereby confirms and agrees that notwithstanding the
effectiveness of such Amendment, the Guaranty is, and shall continue to be, in
full force and effect and is hereby ratified and confirmed in all respects,
except that, on and after the effectiveness of such Amendment, each reference in
the Guaranty to the "Credit Agreement", "thereunder", "thereof" or words of like
import shall mean and be a reference to the Credit Agreement, as amended by such
Amendment.

                            [Signature pages follow]

      GUARANTOR CONSENT TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT

<PAGE>

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

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

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

                                        EUROMOTOR, INC.
                                        as U.S. Guarantor

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

                                        HAYTON PROPERTY COMPANY, LLC
                                        Tecumseh do Brasil USA, LLC
                                        as U.S. Guarantors

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

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

<PAGE>

                                        TECUMSEH PRODUCTS OF CANADA LIMITED,
                                        as Canadian Guarantor

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

                                        FASCO MOTORS COMPANY,
                                        as Canadian Guarantor

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

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

                                                                       EXHIBIT C

                       [SETTLEMENT AND RELEASE AGREEMENT]

         [EXHIBIT C TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

                                     ANNEX A

                                  SUBJECT UNITS

*    Indicates information omitted pursuant to a request for confidential
     treatment and filed separately with the Securities and Exchange Commission

***:

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

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

          [ANNEX A TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

**:

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

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

          [ANNEX A TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]

<PAGE>

**:

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

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

          [ANNEX A TO AMENDMENT NO. 2 TO SECOND LIEN CREDIT AGREEMENT]<PAGE>

                                                                    EXHIBIT 10.1

  THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
  THE SECURITIES ACT OF 1933,THE MICHIGAN UNIFORM SECURITIES ACT, OR ANY OTHER
STATE SECURITIES LAW, AND NEITHER THESE SECURITIES NOR ANY INTEREST THEREIN MAY
BE TRANSFERRED, HYPOTHECATED OR OTHERWISE DISPOSED OF WITHOUT REGISTRATION UNDER
  THE SECURITIES ACT OF 1933,THE MICHIGAN UNIFORM SECURITIES ACT, AND ANY OTHER
   STATE SECURITIES LAW OR AN OPINION OF COUNSEL REASONABLY ACCEPTABLE TO THE
                 COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.

No. CAW-1                                                          April 9, 2007

                    WARRANT TO PURCHASE CLASS A COMMON STOCK
                                       OF
                           TECUMSEH PRODUCTS COMPANY,
                             A MICHIGAN CORPORATION

                            VOID AFTER APRIL 9, 2012

     This certifies that for value received TRICAP PARTNERS II L.P., a Delaware
limited liability company, or its permitted registered assigns ("Holder"), is
entitled, subject to the terms set forth below, at any time before 5:00 p.m.,
Detroit, Michigan time, on April 9, 2012, to purchase from TECUMSEH PRODUCTS
COMPANY, a Michigan corporation (the "Company"), up to 1,390,944 shares of the
Class A common stock of the Company ("Common Stock") at a price per share equal
to the applicable Purchase Price (as defined below), upon surrender of this
Warrant at the principal office of the Company referred to below, with the
attached subscription form (the "Subscription Form") duly executed, and
simultaneous payment therefor in the manner specified in Section 1. The Purchase
Price and the number of shares of Common Stock purchasable hereunder (the
"Warrant Shares") are subject to adjustment as provided in Section 3.

     As used in this Warrant:

          "Business Day" means any day other than Saturday, Sunday or any other
     day which is a legal holiday under the laws of the state of New York or any
     day on which commercial banks are not authorized or required by law to
     close in the City of New York, New York.

          "Closing Price" means, for a Trading Day, the price at which the
     Common Stock last traded on that day, as reported by the Trading Market.

          "Exercise Date" means the particular date (or dates) on which this
     Warrant is exercised.

          "Issue Date" means April 9, 2007.

          "Purchase Price" means:

               (a) with respect to any Exercise Date on or before the first
          anniversary of the Issue Date, 65% of the lowest Closing Price of the
          Common Stock during the period beginning on March 27, 2007 and ending
          on the day before the Exercise Date; and

<PAGE>

               (b) with respect to any Exercise Date after the first anniversary
          of the Issue Date, 65% of the lowest Closing Price of the Common Stock
          during the period beginning on March 27, 2007 and ending on the first
          anniversary of the Issue Date.

          "Trading Day" means (i) a day on which the Common Stock is traded on a
     Trading Market, or (ii) if the Common Stock is not listed on a Trading
     Market, a day on which the Common Stock is traded on the over-the-counter
     market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock
     is not quoted on the OTC Bulletin Board, a day on which the Common Stock is
     quoted in the over-the-counter market as reported by the National Quotation
     Bureau Incorporated (or any similar organization or agency succeeding to
     its functions of reporting prices); provided, that in the event that the
     Common Stock is not listed or quoted as set forth in (i), (ii) and (iii)
     hereof, then Trading Day shall mean a Business Day.

          "Trading Market" means the markets or exchanges on which the Common
     Stock is or may become listed or quoted for trading on the date in
     question, including the American Stock Exchange, the New York Stock
     Exchange, the Nasdaq Global Market, the Nasdaq Capital Market, OTC Bulletin
     Board, or the over-the-counter market as reported by the National Quotation
     Bureau Incorporated (or any similar organization or agency succeeding to
     its functions of reporting prices).

          "Warrant" means this Warrant and any warrant delivered in substitution
     or exchange for this Warrant as provided herein.

          "Warrant Shares" means any shares of Common Stock acquired by Holder
     upon exercise of this Warrant.

     1. Exercise.

          (a) This Warrant may be exercised, in whole or in part, at any time or
from time to time, on any Business Day, for all or any part of the number of
shares of Common Stock called for hereby, by surrendering it at the principal
office of the Company, 100 East Patterson Street, Tecumseh, Michigan 49286,
together with: (A) a completed and executed Subscription Form; and (B) a
certified or cashier's check in an amount equal to the number of shares of
Common Stock being purchased multiplied by the applicable Purchase Price unless
such exercise is by means of a cashless exercise pursuant to Section 5.

          (b) This Warrant may be exercised for less than the full number of
shares as of the Exercise Date. Upon such partial exercise, this Warrant shall
be surrendered, and a new Warrant of the same tenor and for the purchase of the
Warrant Shares not purchased upon such exercise shall be issued to Holder by the
Company.

          (c) A Warrant shall be deemed to have been exercised immediately prior
to the close of business on the date of its surrender for exercise as provided
above, and the person entitled to receive the shares of Common Stock issuable
upon such exercise shall be treated for all purposes as the holder of such
shares of record as of the close of business on such date. As soon as
practicable on or after such date, and in any event within five Business Days
thereafter, the Company shall provide its transfer agent with instructions to
issue and deliver to the person or persons entitled to receive the same a
certificate or certificates for the number of full shares of Common Stock
issuable upon such exercise, together with cash, in lieu of any fraction of a
share,

                                        2

<PAGE>

equal to such fraction of the current fair market value of one full share as
reasonably determined in good faith by the Company's Board of Directors.

     2. Payment of Taxes. All shares of Common Stock issued upon the exercise of
a Warrant shall be validly issued, fully paid, and nonassessable, and the
Company shall pay all taxes and other governmental charges that may be imposed
in respect of the issue or delivery thereof, other than any tax or other charge
imposed in connection with any transfer involved in the issue of any certificate
for shares of Common Stock in any name other than that of the registered Holder
of the Warrant surrendered in connection with the purchase of such shares, and
in such case the Company shall not be required to issue or deliver any stock
certificate until such tax or other charge has been paid or it has been
established to the Company's satisfaction that no tax or other charge is due.

     3. Certain Adjustments.

          (a) Adjustment for Dividends in Securities or Property;
Reclassifications. In case at any time or from time to time after the Issue Date
the holders of Common Stock (or any shares of stock or other securities at the
time receivable upon the exercise of this Warrant) shall have received, or, on
or after the record date fixed for the determination of eligible shareholders (a
"Record Date"), shall have become entitled to receive, without payment therefor,

               (1) other or additional stock or other securities or property
     (including cash) by way of dividend,

               (2) other or additional stock or other securities or property by
     way of stock-split, spin-off, reclassification, combination of shares, or
     similar corporate rearrangement,

(other than additional shares of Common Stock of the Company issued as a stock
dividend or stock-split, which events shall be covered by the terms of Section
3(b) or 3(c)), then and in each such case Holder, upon the exercise hereof as
provided in Section 1, shall be entitled to receive the amount of stock and
other securities and property which such Holder would have received if, upon the
Record Date such Holder had been the holder of the number of shares of Common
Stock called for on the face hereof and had thereafter, during the period from
the Issue Date through the date of such exercise, retained such shares and/or
all other or additional stock and other securities and property receivable by it
as aforesaid during such period, giving effect to all adjustments called for
during such period by Sections 3(a) and 3(b).

          (b) Adjustment for Reclassification, Merger, or Share Exchange. In
case of any reclassification, merger, share exchange, or other similar corporate
reorganization on or after the Issue Date in which holders of outstanding Common
Stock receive stock or other securities or property in exchange for their Common
Stock, then and in each such case Holder, upon the exercise hereof at any time
after the consummation of such reclassification, merger, share exchange, or
other reorganization, shall be entitled to receive, in lieu of the stock or
other securities and property receivable upon the exercise hereof prior to such
consummation, the stock or other securities or property to which the Holder
would have been entitled upon such consummation if the Holder had exercised this
Warrant immediately prior thereto, all subject to further adjustment as provided
in paragraph (a), and in each such case, the terms of this Section 3 shall be
applicable to the Company securities properly receivable upon the exercise of
this Warrant after such consummation.

                                        3

<PAGE>

          (c) Adjustments for Dividends in Common Stock. In case at any time
after the Issue Date the Company shall declare any dividend on the Common Stock
which is payable in Common Stock, the number of Warrant Shares evidenced hereby
shall be proportionately increased and the Purchase Price shall be
proportionately decreased.

          (d) Stock Split and Reverse Stock Split. If the Company at any time or
from time to time after the Issue Date effects a subdivision of the outstanding
Common Stock, the Purchase Price then in effect immediately before that
subdivision shall be proportionately decreased, and the number of shares of
Common Stock theretofore receivable upon the exercise of this Warrant shall be
proportionately increased. If the Company at any time or from time to time after
the Issue Date combines the outstanding shares of Common Stock into a smaller
number of shares, the Purchase Price then in effect immediately before that
combination shall be proportionately increased, and the number of shares of
Common Stock theretofore receivable upon the exercise of this Warrant shall be
proportionately decreased. Each adjustment under this Section 3(d) shall become
effective at the close of business on the date the subdivision or combination
becomes effective.

          (e) Accountants' Certificate as to Adjustment. In each case of an
adjustment in the shares of Common Stock receivable on the exercise of the
Warrant, the Company at its expense shall cause independent public accountants
of recognized standing selected by the Company (who may be the independent
public accountants then auditing the books of the Company) to compute such
adjustment in accordance with the terms of the Warrant and prepare a certificate
setting forth such adjustment and showing the facts upon which such adjustment
is based. The Company will forthwith mail a copy of each such certificate to
each holder of a Warrant at the time outstanding.

          (f) No Dilution or Impairment. Subject to the provisions of Section 7,
the Company will not, by amendment of its restated articles of incorporation or
through reorganization, consolidation, merger, dissolution, issue or sale of
securities, sale of assets, or any other voluntary action, avoid or seek to
avoid the observance or performance of any of the terms of this Warrant, but
will at all times in good faith assist in the carrying out of all such terms and
in the taking of all such action as may be necessary or appropriate in order to
protect Holder's rights under this Warrant against dilution or other impairment.
Before taking any action which would result in an adjustment in the number of
Warrant Shares for which this Warrant is exercisable or in the Purchase Price,
the Company shall obtain all such authorizations or exemptions thereof, or
consents thereto, as may be necessary from any public regulatory body or bodies
having jurisdiction thereof.

     4. Notices of Record Date. In case (a) the Company shall take a record of
the holders of its Common Stock (or other stock or securities at the time
receivable upon the exercise of the Warrants) for the purpose of entitling them
to receive any dividend or other distribution, or any right to subscribe for or
purchase any shares of stock of any class or any other securities, or to receive
any other right, or (b) of any Extraordinary Transaction (as defined below) or
reorganization, reclassification, consolidation, merger, share exchange,
conveyance, voluntary dissolution, liquidation, or winding-up of the Company,
then, and in each such case, the Company will mail or cause to be mailed to
Holder a notice specifying, as the case may be, (1) the date on which a record
is to be taken for the purpose of such dividend, distribution, or right, and
stating the amount and character of such dividend, distribution or right, or
(2) the date on which such Extraordinary Transaction, reorganization,
reclassification, consolidation, merger,

                                        4

<PAGE>

share exchange, conveyance, dissolution, liquidation, or winding-up is to take
place, and the time, if any is to be fixed, as of which the holders of record of
Common Stock (or such stock or securities at the time receivable upon the
exercise of the Warrants) shall be entitled to exchange their shares of Common
Stock (or such other stock or securities) for securities or other property
deliverable upon such reorganization, reclassification, consolidation, merger,
share exchange, conveyance, dissolution, liquidation, or winding-up. Such notice
shall be mailed at least 30 days prior to the date therein specified.

     5. Cashless Exercise. Holder may, at its option, in lieu of paying the
Purchase Price upon exercise of this Warrant pursuant to Section 1, elect to
instead receive a number of Warrant Shares computed using the following formula:

          X = Y(A-B)/A

          where:

               X = the number of Warrant Shares issuable to Holder upon exercise
                   under this Section 5;

               Y = the number of Warrant Shares issuable to Holder upon exercise
                   under the terms of this Warrant if Holder had elected to
                   exercise otherwise than under this Section 5;

               A = the Closing Price on the Trading Day before the Exercise
                   Date; and

               B = the Purchase Price.

     6. Registration Rights. The Warrant Shares are entitled to the benefits of
the Registration Rights Agreement dated as of the Issue Date between the Company
and the original Holder.

     7. Reorganization, Merger, Consolidation, or Disposition of Assets. In case
the Company shall (i) reorganize its capital, (ii) consolidate or merge with or
into another corporation (where the Company is not the surviving corporation or
where there is a change in or distribution with respect to the Common Stock of
the Company), or (iii) sell, transfer or otherwise dispose of all or
substantially all its property, assets, or business to another corporation (each
of (i) through (iii), an "Extraordinary Transaction") and, pursuant to the terms
of such reorganization, reclassification, merger, consolidation or disposition
of assets, shares of common stock of the successor or acquiring corporation, or
any cash, shares of stock or other securities or property of any nature
whatsoever (including warrants or other subscription or purchase rights) in
addition to or in lieu of common stock of the successor or acquiring corporation
("Other Property"), are to be received by or distributed to the holders of
Common Stock of the Company, then the Holder shall have the right thereafter to
receive, at the option of the Holder, upon exercise of this Warrant, the number
of shares of common stock of the successor or acquiring corporation or of the
Company, if it is the surviving corporation, and Other Property receivable upon
or as a result of such reorganization, reclassification, merger, consolidation
or disposition of assets by a holder of the number of shares of Common Stock for
which this Warrant is exercisable immediately prior to such event.
Notwithstanding anything contained herein to the contrary, in the event of any
Extraordinary Transaction, the Company shall provide the Holder with notice of
the Extraordinary Transaction in accordance with Section 4, and the Holder must
exercise its Warrant at least three calendar days prior to the effective date of
the Extraordinary Transaction ("Extraordinary Transaction Election Date") in
accordance with the exercise

                                        5

<PAGE>

procedures set forth herein in exchange for the consideration set forth in the
first sentence of this Section 7, and if Holder does not exercise the Warrant
prior to the Extraordinary Transaction Election Date, Holder shall forfeit all
of its rights under this Warrant and this Warrant shall terminate as of the
Extraordinary Transaction Election Date. For purposes of this Section 7, "common
stock of the successor or acquiring corporation" shall include stock of such
corporation of any class which is not preferred as to dividends or assets over
any other class of stock of such corporation and which is not subject to
redemption and shall also include any evidences of indebtedness, shares of stock
or other securities which are convertible into or exchangeable for any such
stock, either immediately or upon the arrival of a specified date or the
happening of a specified event and any warrants or other rights to subscribe for
or purchase any such stock. The foregoing provisions of this Section 7 shall
similarly apply to successive reorganizations, reclassifications, mergers,
consolidations, or disposition of assets.

     8. Transfer, Division, and Combination.

          (a) Subject to compliance with any applicable securities laws and the
conditions set forth herein, this Warrant and all rights hereunder are
transferable, in whole or, subject to Section 8(f), in part, upon surrender of
this Warrant at the principal office of the Company, together with a written
assignment of this Warrant substantially in the form attached hereto duly
executed by Holder or its agent or attorney and funds sufficient to pay any
transfer taxes payable upon the making of such transfer. Upon such surrender
and, if required, such payment, the Company shall execute and deliver a new
Warrant or Warrants in the name of the assignee or assignees and in the
denomination or denominations specified in such instrument of assignment, and
shall issue to the assignor a new Warrant evidencing the portion of this Warrant
not so assigned, and this Warrant shall promptly be canceled. A Warrant, if
properly assigned, may be exercised by a new holder for the purchase of Warrant
Shares without having a new Warrant issued.

          (b) This Warrant may be divided, subject to Section 8(f), or combined
with other Warrants upon presentation hereof at the aforesaid office of the
Company, together with a written notice specifying the names and denominations
in which new Warrants are to be issued, signed by Holder or its agent or
attorney. Subject to compliance with Section 8(a), as to any transfer which may
be involved in such division or combination, the Company shall execute and
deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be
divided or combined in accordance with such notice.

          (c) The Company shall prepare, issue, and deliver at its own expense
(other than transfer taxes) the new Warrant or Warrants under this Section 8.

          (d) The Company agrees to maintain, at its aforesaid office, books for
the registration and the registration of transfer of the Warrants.

          (e) If, at the time of the surrender of this Warrant in connection
with any transfer of this Warrant, the transfer of this Warrant shall not be
registered pursuant to an effective registration statement under the Securities
Act of 1933, as amended (the "Securities Act"), the Michigan Uniform Securities
Act (the "Michigan Act") if applicable, and any other applicable state
securities or blue sky laws, the Company may require, as a condition of allowing
such transfer (i) that the Holder or transferee of this Warrant, as the case may
be, furnish to the Company a written opinion of counsel reasonably acceptable to
the Company (which opinion shall be in form, substance, and scope customary for
opinions of counsel in comparable

                                        6

<PAGE>

transactions) to the effect that such transfer may be made without registration
under the Securities Act, the Michigan Act, and any applicable state securities
or blue sky laws, (ii) that the holder or transferee execute and deliver to the
Company an investment letter in form and substance acceptable to the Company,
and (iii) that the transferee be an "accredited investor" as defined in Rule
501(a) promulgated under the Securities Act.

          (f) No Warrant shall be issued in a denomination of less than 25,000
Warrant Shares. Accordingly, (i) any partial assignment of this Warrant must be
in a denomination of at least 25,000 Warrant Shares and the portion retained by
the assignor must cover at least 25,000 Warrant Shares, and (ii) this Warrant
may not be divided so as to result in the issuance of any new Warrant in a
denomination of less than 25,000 Warrant Shares.

     9. No Rights as Shareholder. Prior to the exercise of this Warrant, Holder
shall not be entitled to any rights of a shareholder with respect to the Warrant
Shares, including without limitation the right to vote such Warrant Shares,
receive dividends or other distributions thereon, exercise preemptive rights, or
be notified of shareholder meetings, and Holder shall not be entitled to any
notice or other communication concerning the business or affairs of the Company.
However, nothing in this Section 9 shall limit the right of Holder to be
provided the notices required under this Warrant.

     10. Compliance with Securities Laws. Holder, by acceptance hereof, agrees
that this Warrant and the Warrant Shares to be issued upon exercise hereof are
being acquired for investment and not with a view towards resale and that it
will not offer, sell, or otherwise dispose of this Warrant or any Warrant Shares
to be issued upon exercise hereof except under circumstances that will not
result in a violation of the Securities Act, the Michigan Uniform Securities
Act, or any other applicable state securities act. Upon exercise of this
Warrant, Holder hereof shall confirm in writing, in the form of Exhibit A, that
the Warrant Shares so purchased are being acquired for investment and not with a
view toward distribution or resale. This Warrant and all Warrant Shares issued
upon exercise of this Warrant (unless registered under the Securities Act, the
Michigan Act if applicable, and any other applicable state securities act) shall
be stamped or imprinted with the legend indicated on the first page of this
Warrant.

     11. Loss or Mutilation. Upon receipt by the Company of evidence
satisfactory to it (in the exercise of reasonable discretion) of the ownership
of and the loss, theft, destruction, or mutilation of any Warrant and (in the
case of loss, theft, or destruction) of indemnity satisfactory to it (in the
exercise of reasonable discretion but shall not include the posting of any
bond), and (in the case of mutilation) upon surrender and cancellation thereof,
the Company will execute and deliver in lieu thereof a new Warrant of like
tenor.

     12. Reservation of Common Stock. The Company shall at all times reserve and
keep available for issue upon the exercise of Warrants such number of its
authorized but unissued shares of Common Stock as will be sufficient to permit
the exercise in full of this Warrant. The Company covenants that all Warrant
Shares which may be issued upon the exercise of the purchase rights represented
by this Warrant will, upon exercise of the purchase rights represented by this
Warrant, be duly authorized, validly issued, fully paid and nonassessable, and
free from all taxes, liens and charges in respect of the issue thereof (other
than taxes in respect of any transfer occurring contemporaneously with such
issue).

                                        7

<PAGE>

     13. Notices. All notices and other communications from the Company to
Holder shall be mailed by first-class registered or certified mail, postage
prepaid, to the address furnished to the Company by Holder.

     14. Change; Waiver. Neither this Warrant nor any term hereof may be
changed, waived, discharged, or terminated orally, but only by an instrument in
writing signed by the party against which enforcement of the change, waiver,
discharge, or termination is sought. No course of dealing or any delay or
failure to exercise any right hereunder on the part of Holder shall operate as a
waiver of such right or otherwise prejudice Holder's rights, powers, or
remedies.

     15. Headings. The headings in this Warrant are for purposes of convenience
in reference only, and shall not be deemed to constitute a part hereof.

     16. Saturdays, Sundays, Holidays, Etc. If the last or appointed day for the
taking of any action or the expiration of any right required or granted herein
shall be a Saturday, Sunday, or a legal holiday, then such action may be taken
or such right may be exercised on the next succeeding day not a Saturday,
Sunday, or legal holiday.

     17. Law Governing. This Warrant is delivered in Michigan and shall be
construed and enforced in accordance with and governed by the internal laws, and
not the law of conflicts, of such State.

     18. Limitation of Liability. No provision hereof, in the absence of any
affirmative action by Holder to exercise this Warrant or purchase Warrant
Shares, and no enumeration herein of the rights or privileges of Holder, shall
give rise to any liability of Holder for the purchase price of any Common Stock
or as a shareholder of the Company, whether such liability is asserted by the
Company or by creditors of the Company.

     20. Remedies. Holder, in addition to being entitled to exercise all rights
granted by law, including recovery of damages, will be entitled to specific
performance of its rights under this Warrant. The Company agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a
breach by it of the provisions of this Warrant and hereby agrees to waive the
defense in any action for specific performance that a remedy at law would be
adequate. If the Company willfully and knowingly fails to comply with any
provision of this Warrant, which results in any material damages to the Holder,
the Company shall pay to Holder such amounts as shall be sufficient to cover any
costs and expenses including, but not limited to, attorneys' fees, including
those of appellate proceedings, incurred by Holder in collecting any amounts due
pursuant hereto or in otherwise enforcing any of its rights, powers or remedies
hereunder.

     21. Successors and Assigns. Subject to applicable securities laws, this
Warrant and the rights and obligations evidenced hereby shall inure to the
benefit of and be binding upon the successors of the Company and the successors
and permitted assigns of Holder.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                        8

<PAGE>

     IN WITNESS WHEREOF, the undersigned have executed this Warrant as of the
date set forth above.

                                        TECUMSEH PRODUCT COMPANY

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

Accepted and agreed to:

(Holder)
TRICAP PARTNERS II L.P.

By: Tricap Partners II GP L.P.,
    its general partner

By: Tricap Partners Ltd., its
    general partner

By: /s/ Gary Franko
    ---------------------------------
Name: Gary Franko
Title: Vice President

                           [Warrant - Signature Page]

<PAGE>

                                SUBSCRIPTION FORM

                 (To be executed only upon exercise of Warrant)

     The undersigned registered owner of this Warrant irrevocably exercises this
Warrant and purchases ____________ of the number of shares of Class A Common
Stock of Tecumseh Products Company, a Michigan corporation, purchasable with
this Warrant, and herewith makes payment therefor, all at the price and on the
terms and conditions specified in this Warrant. The undersigned hereby
represents and warrants that the undersigned is acquiring such shares for its
own account for investment purposes only, and not for resale or with a view to
distribution of such shares or any part thereof.

                                        (Holder)

Dated: _______________, 20___           ----------------------------------------

                                        By:
                                            ------------------------------------
                                        [name]
                                               ---------------------------------
                                        [title]
                                                --------------------------------

                                        ----------------------------------------
                                        [Street address]

                                        ----------------------------------------
                                        [City, state, and ZIP code]

<PAGE>

                               FORM OF ASSIGNMENT

     FOR VALUE RECEIVED the undersigned registered owner of this Warrant hereby
sells, assigns, and transfers unto the Assignee named below all of the rights of
the undersigned under the within Warrant, with respect to the number of shares
of Common Stock set forth below:

     Name of Assignee:
                       ------------------------------------
     Address:
              ---------------------------------------------
     No. of Shares:
                    ---------------------------------------

and does hereby irrevocably constitute and appoint ___________________________
Attorney to make such transfer on the books of Tecumseh Products Company, a
Michigan corporation, maintained for the purpose, with full power of
substitution in the premises.

                                        (Holder)

Dated: _______________, 20___           ----------------------------------------

Witnessed by:

                                        By:
------------------------------              ------------------------------------
                                        [name]
                                               ---------------------------------
                                        [title]
                                                --------------------------------

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