Document:

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                                                                  EXECUTION COPY

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                           FOURTH AMENDED AND RESTATED

                          CREDIT ACCEPTANCE CORPORATION

                                CREDIT AGREEMENT

                          DATED AS OF FEBRUARY 7, 2006

                     COMERICA BANK, AS ADMINISTRATIVE AGENT
                              AND COLLATERAL AGENT

              BANC OF AMERICA SECURITIES, LLC AS SOLE LEAD ARRANGER
                              AND SOLE BOOK MANAGER

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                                TABLE OF CONTENTS

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<S>                                                                                                            <C>
1.       DEFINITIONS.........................................................................................        1

2.       REVOLVING CREDIT....................................................................................       33
         2.1      Commitment.................................................................................       33
         2.2      Accrual of Interest and Maturity...........................................................       34
         2.3      Requests for and Refundings and Conversions of Advances....................................       34
         2.4      Disbursement of Advances...................................................................       36
         2.5      Swing Line.................................................................................       38
         2.6      Prime-based Interest Payments..............................................................       42
         2.7      Eurodollar-based Interest Payments and Quoted Rate Interest Payments.......................       43
         2.8      Interest Payments on Conversions...........................................................       43
         2.9      Interest on Default........................................................................       43
         2.10     Prepayment.................................................................................       43
         2.11     Intentionally Omitted......................................................................       44
         2.12     Prime-based Advance in Absence of Election or Upon Default.................................       44
         2.13     Revolving Credit Facility Fee..............................................................       44
         2.14     Mandatory Reduction of Indebtedness........................................................       45
         2.15     Optional Reduction or Termination of Revolving Credit Maximum Amount.......................       46
         2.16     Extension of Revolving Credit Maturity Date................................................       47
         2.17     Optional Increase in Revolving Credit Maximum Amount.......................................       47
         2.18     Revolving Credit as Renewal; Application of Advances; Existing Advances....................       49

3.       LETTERS OF CREDIT...................................................................................       49
         3.1      Letters of Credit..........................................................................       49
         3.2      Conditions to Issuance.....................................................................       50
         3.3      Notice.....................................................................................       51
         3.4      Letter of Credit Fees......................................................................       52
         3.5      Issuance Fees..............................................................................       52
         3.6      Draws and Demands for Payment Under Letters of Credit......................................       53
         3.7      Obligations Irrevocable....................................................................       54
         3.8      Risk Under Letters of Credit...............................................................       55
         3.9      Indemnification............................................................................       56
         3.10     Right of Reimbursement.....................................................................       57
         3.11     Existing Letters of Credit.................................................................       57

4.       INTENTIONALLY OMITTED...............................................................................       58

5.       CONDITIONS..........................................................................................       58
         5.1      Execution of Notes, this Agreement and the other Loan Documents............................       58
         5.2      Corporate Authority........................................................................       58
         5.3      Representations and Warranties -- All Parties..............................................       58
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<S>                                                                                                                 <C>
         5.4      Compliance with Certain Documents and Agreements...........................................       59
         5.5      Company's Certificate and Opening Borrowing Base Certificate...............................       59
         5.6      Payment of Agent's and Other Fees..........................................................       59
         5.7      Opinions...................................................................................       59
         5.8      Other Documents and Instruments............................................................       59
         5.9      Continuing Conditions......................................................................       59

6.       REPRESENTATIONS AND WARRANTIES......................................................................       60
         6.1      Corporate Authority........................................................................       60
         6.2      Due Authorization -- Company...............................................................       60
         6.3      Title to Property..........................................................................       60
         6.4      Liens......................................................................................       61
         6.5      Subsidiaries...............................................................................       61
         6.6      Taxes......................................................................................       61
         6.7      No Defaults................................................................................       61
         6.8      Enforceability of Agreement and Loan Documents -- Company..................................       61
         6.9      Enforceability of Loan Documents - -  Significant Domestic Subsidiaries....................       61
         6.10     Non-contravention -- Company...............................................................       62
         6.11     Non-contravention -- Significant Domestic Subsidiaries.....................................       62
         6.12     No Litigation..............................................................................       62
         6.13     Consents, Approvals and Filings, Etc.......................................................       62
         6.14     Agreements Affecting Financial Condition...................................................       62
         6.15     No Investment Company; No Margin Stock.....................................................       62
         6.16     ERISA......................................................................................       63
         6.17     Compliance with Laws.......................................................................       63
         6.18     Accuracy of Information....................................................................       64

7.       AFFIRMATIVE COVENANTS...............................................................................       64
         7.1      Preservation of Existence, Etc.............................................................       64
         7.2      Keeping of Books; Write Off Policy.........................................................       64
         7.3      Reporting Requirements.....................................................................       64
         7.4      Maintain Asset Coverage Ratio..............................................................       67
         7.5      Maintain Funded Debt Ratio Level...........................................................       67
         7.6      Minimum Tangible Net Worth.................................................................       67
         7.7      Maintain Fixed Charge Coverage Ratio.......................................................       67
         7.8      Inspections................................................................................       67
         7.9      Taxes......................................................................................       68
         7.10     Further Assurances.........................................................................       68
         7.11     Insurance..................................................................................       68
         7.12     Indemnification............................................................................       68
         7.13     Governmental and Other Approvals...........................................................       69
         7.14     Compliance with Contractual Obligations and Laws...........................................       69
         7.15     ERISA......................................................................................       69
         7.16     Environmental Matters......................................................................       70
         7.17     Installment Contract Standards.............................................................       70
         7.18     Financial Covenant Amendments..............................................................       71
         7.19     Subsidiaries; Guaranties...................................................................       72
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         7.20     Subsidiaries; Security Documents...........................................................       72

8.       NEGATIVE COVENANTS..................................................................................       73
         8.1      Redemptions................................................................................       73
         8.2      Business Purposes..........................................................................       73
         8.3      Mergers or Dispositions....................................................................       73
         8.4      Guaranties.................................................................................       73
         8.5      Debt.......................................................................................       74
         8.6      Liens......................................................................................       75
         8.7      Acquisitions...............................................................................       75
         8.8      Investments................................................................................       76
         8.9      Accounts Receivable and Other Financial Assets.............................................       77
         8.10     Transactions with Affiliates...............................................................       78
         8.11     No Further Negative Pledges................................................................       78
         8.12     Prepayment of Debts........................................................................       78
         8.13     Amendment of Future Debt Documents.........................................................       78
         8.14     Amendment of Subordinated Debt Documents...................................................       79
         8.15     Limitation on Dividends....................................................................       79
         8.16     Securitization Transaction; Amendments to Securitization Documents.........................       79

9.       DEFAULTS............................................................................................       80
         9.1      Events of Default..........................................................................       80
         9.2      Exercise of Remedies.......................................................................       82
         9.3      Rights Cumulative..........................................................................       83
         9.4      Waiver by Company of Certain Laws..........................................................       83
         9.5      Waiver of Defaults.........................................................................       83
         9.6      Cross-Default..............................................................................       83

10.      PAYMENTS, RECOVERIES AND COLLECTIONS................................................................       83
         10.1     Payment Procedure..........................................................................       83
         10.2     Application of Proceeds....................................................................       85
         10.3     Pro-rata Recovery..........................................................................       85
         10.4     Deposits and Accounts......................................................................       86

11.      CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS....................................................       86
         11.1     Reimbursement of Prepayment Costs..........................................................       86
         11.2     Eurodollar Lending Office..................................................................       86
         11.3     Circumstances Affecting Eurodollar-based Rate Availability.................................       87
         11.4     Laws Affecting Eurodollar-based Advance Availability.......................................       87
         11.5     Increased Cost of Eurodollar-based Advances................................................       87
         11.6     Indemnity..................................................................................       88
         11.7     Other Increased Costs......................................................................       89
         11.8     Right of Banks to Fund through Branches and Affiliates.....................................       89

12.      AGENT...............................................................................................       90
         12.1     Appointment of Agent.......................................................................       90
         12.2     Deposit Account with Agent.................................................................       90
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         12.3     Exculpatory Provisions.....................................................................       90
         12.4     Successor Agents...........................................................................       91
         12.5     Loans by Agent: Agent in its Individual Capacity...........................................       91
         12.6     Credit Decisions...........................................................................       91
         12.7     Notices by Agent...........................................................................       92
         12.8     Agent's Fees...............................................................................       92
         12.9     Nature of Agency...........................................................................       92
         12.10    Authority of Agent to Enforce Notes and This Agreement.....................................       92
         12.11    Indemnification............................................................................       92
         12.12    Knowledge of Default.......................................................................       93
         12.13    Agent's Authorization; Action by Banks.....................................................       93
         12.14    Enforcement Actions by the Agent...........................................................       94
         12.15    Lead Arranger; Documentation Agent or other Titles.........................................       94
         12.16    Collateral Matters.........................................................................       94

13.      MISCELLANEOUS.......................................................................................       95
         13.1     Accounting Principles......................................................................       95
         13.2     Consent to Jurisdiction....................................................................       95
         13.3     Law of Michigan............................................................................       95
         13.4     Interest...................................................................................       95
         13.5     Closing Costs; Other Costs.................................................................       96
         13.6     Notices....................................................................................       96
         13.7     Further Action.............................................................................       97
         13.8     Successors and Assigns; Assignments and Participations.....................................       97
         13.9     Indulgence.................................................................................      100
         13.10    Counterparts...............................................................................      100
         13.11    Amendment and Waiver.......................................................................      100
         13.12    Taxes and Fees.............................................................................      101
         13.13    Confidentiality............................................................................      101
         13.14    Withholding Taxes..........................................................................      101
         13.15    Effective Upon Execution...................................................................      102
         13.16    Severability...............................................................................      102
         13.17    Table of Contents and Headings.............................................................      102
         13.18    Construction of Certain Provisions.........................................................      102
         13.19    Independence of Covenants..................................................................      102
         13.20    Reliance on and Survival of Various Provisions.............................................      103
         13.21    Complete Agreement; Amendment and Restatement..............................................      103
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                           FOURTH AMENDED AND RESTATED
                                CREDIT AGREEMENT

      THIS FOURTH AMENDED AND RESTATED CREDIT AGREEMENT ("Agreement") is made as
of the _____ day of February, 2006, by and among the Banks signatory hereto
(individually, "Bank", and collectively "Banks"), Comerica Bank, as
administrative agent and collateral agent for the Banks (in such capacity,
"Agent") and Credit Acceptance Corporation, a Michigan corporation ("Company").

                                    RECITALS

      A. Company has requested that the Banks amend, renew and/or extend to it,
credit in the aggregate amount (subject to the Revolving Credit Optional
Increase, as defined below) of up to One Hundred Thirty-Five Million Dollars
($135,000,000) consisting of (i) the Revolving Credit (as defined below)
previously extended to Company pursuant to that certain Third Amended and
Restated Credit Acceptance Corporation Credit Agreement dated as of June 9, 2004
(as amended, the "Prior Credit Agreement") by and among Company, the Banks
signatory thereto and Comerica Bank, individually and in its capacity as Agent,
and (ii) letters of credit all on the terms and conditions set forth herein.

      B. The Banks are prepared to extend such credit as aforesaid by amendment
and renewal (but not in novation) of the Prior Credit Agreement, but only on the
terms and conditions set forth in this Agreement.

      NOW THEREFORE, COMPANY, AGENT AND THE BANKS AGREE:

      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 or any Significant Domestic
Subsidiary, jointly and severally with Company) as named in an application to
the Agent for the issuance of such Letter of Credit.

      "Additional Commitment Fee" shall mean the additional commitment fee
payable to Agent for distribution to the Banks pursuant to Section 2.13 hereof.

      "Advance(s)" shall mean, as the context may indicate, a borrowing
requested by Company, and made by Banks under Section 2.1 of this Agreement, as
the case may be, or requested by the Company 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 or 2.5(c) 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 Eurodollar-based Advance, a Quoted
Rate Advance, a Prime-based Advance and a Swing Line Advance.

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      "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 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 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 of America), or at such other bank as
Agent may from time to time designate by written notice to Company 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.

      "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%).

      "Anti-Terrorism Laws" is defined in Section 6.17(b) hereof.

      "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 1.1.

      "Applicable Interest Rate" shall mean the Eurodollar-based Rate, the
Prime-based Rate or, with respect to Swing Line Advances, the Quoted Rate, as
selected by Company 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.

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

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      "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.

      "Borrowing Base Certificate" shall mean a Borrowing Base Certificate,
substantially in the form of Exhibit O (and determining the amount of Dealer
Loans Receivable as of the most recent quarter end, in the case of regular
borrowing base certificates delivered under Section 7.3(d) hereof, and as of the
most recent month-end, in the case of all other Borrowing Base Certificates
submitted hereunder), with appropriate insertions and executed by an authorized
officer of the Company and accompanied, when submitted in connection with a
Permitted Securitization or a sale of accounts under Section 8.9 hereof, by a
breakdown of the contemplated net securitization or sale proceeds to be received
(or actually received, as the case may be) from such transaction, and reasonable
supporting calculations.

      "Borrowing Base Limitation" shall mean, as of any date of determination,
an amount equal to (i) seventy-five percent (75%) of Dealer Loans Receivable,
plus (ii) seventy -five percent (75%) of the Purchased Contract Balance, minus
(iii) the Hedging Reserve and minus (iv) the aggregate principal amount
outstanding from time to time of any Debt (other than the Indebtedness) secured
by any of the Collateral; provided, however, that, at any time, the portion of
the Borrowing Base Limitation derived from the Purchased Contract Balance under
clause (ii) of this definition shall not exceed a maximum of twenty-five percent
(25%) of the aggregate Borrowing Base Limitation; and provided, further, that
if, at any time, the advance rates under any Securitization Transaction set
forth in the related Securitization Documents ("Securitization Advance Rates")
are lower than the applicable advance rates expressed in clauses (i) or (ii) of
this definition ("Credit Agreement Advance Rates"), the applicable Credit
Agreement Advance Rates shall be deemed to be automatically reduced to the
lowest Securitization Advance Rates then in effect, such reduction to remain in
effect so long as the Securitization Advance Rates are lower than the Credit
Agreement Advance Rates set forth in this definition. At no time, however, shall
the Credit Agreement Advance Rates exceed seventy-five percent (75%).

      "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.

      "CAC South Dakota" shall mean Credit Acceptance Corporation of South
Dakota, Inc., a South Dakota corporation.

      "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.

      "Capitalized Lease" shall mean, as applied to any Person, any lease of any
property (whether real, personal or mixed) with respect to which the discounted
present value of the rental

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obligations of such Person as lessee thereunder, in conformity with GAAP, is
required to be capitalized on the balance sheet of that Person.

      "Cleanup Call(s)" shall mean:

            (1)   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
                  the calculation under 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, each such optional cleanup call to be
                  accompanied by the repurchase of or release of encumbrances on
                  the Dealer Loan Pools or Purchased Contracts, as the case may
                  be, previously transferred or encumbered pursuant to such
                  Permitted Securitization in an amount equal to at least the
                  amount of such cleanup call; and

            (2)   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
                  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 the
                  calculation under 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, each such mandatory Cleanup Call to be
                  accompanied by the repurchase of or release of encumbrances on
                  Dealer Loan Pools or Purchased Contracts, as the case may be,
                  previously transferred or encumbered pursuant to such
                  Permitted Securitization in an amount equal to at least the
                  lesser of (A) the amount of such cleanup call or (B) the net
                  book value at the time of such cleanup call of the Dealer Loan
                  Pools or Purchased

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                  Contracts previously transferred or encumbered pursuant to
                  such Permitted Securitization.

      "Collateral" shall mean (a) 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 Dealer Loans, Dealer Loan
Pools, Dealer Agreements (and any amounts advanced to or liens granted by
Dealers thereunder), Installment Contracts, leases and related financial assets
(such Dealer Agreements, Dealer Loans, Dealer Loan Pools and the Installment
Contracts, accounts, contract rights, chattel paper, leases and general
intangibles relating to such Dealer Agreements, Dealer Loans, and Dealer Loan
Pools being subject to the rights, if any, of Dealers under Dealer Agreements),
Intercompany Notes and computer records and software relating thereto, whether
now owned or hereafter acquired by such Person, (b) one hundred percent (100%)
of the share capital of each Significant Domestic Subsidiary of the Company
(whether direct or indirect), (c) one hundred percent (100%) of the share
capital of T&C Subsidiary (subject to release upon dissolution of the T&C
Subsidiary in connection with the completion of the New Restructuring) and of
CAC South Dakota (whether or not constituting a Significant Domestic
Subsidiary), (d) not less than sixty-five percent (65%) of the aggregate
partnership interests of the Scottish Partnership, (e) all other property or
rights in which a security interest, mortgage, lien or other encumbrance for the
benefit of the Banks is or has been granted or arises or has arisen, under or in
connection with this Agreement, the Collateral Documents or any of the Other
Loan Documents, or otherwise, and (f) all proceeds and products of the
foregoing.

      "Collateral Documents" shall mean (i) that certain Third Amended and
Restated Security Agreement dated as of February ____, 2006 and executed and
delivered by Company and the other Subsidiary debtors signatory thereto in favor
of the Agent, as Collateral Agent pursuant to the Intercreditor Agreement (as
amended, the "Security Agreement"), and encumbering the property described
therein, (ii) an assignation executed and delivered by Company in favor of the
Agent, as Collateral Agent pursuant to the Intercreditor Agreement, and
encumbering the Collateral described in clause (e) of the definition of
Collateral, (iii) those certain lien, charge or other security documents
executed and delivered, or to be executed and delivered hereunder in order to
encumber 100% of the share capital of the T&C Subsidiary, executed and delivered
by the Company or any of its subsidiaries and delivered to the Agent, as
Collateral Agent (as aforesaid), subject to release of such liens upon
dissolution of the T&C Subsidiary in compliance with the terms of the New
Restructuring, and (iv) 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 or further amended (subject to the
Intercreditor Agreement) from time to time.

      "Commitment Fee" shall mean the commitment fee payable to Agent for
distribution to the Banks pursuant to Section 2.13, hereof.

      "Company" is defined in the Preamble.

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      "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, 2004.

      "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, plus (c) the aggregate amount of all dividends on any
preferred stock of the Company declared during such period, determined after
eliminating intercompany transactions among the Company and its Subsidiaries.

      "Consolidated Funded Debt" shall mean, as of any applicable date of
determination, all Funded Debt of the Company and its Subsidiaries determined on
a Consolidated basis according to GAAP, but including the Funded Debt of any
Special Purpose Subsidiary, whether or not includible under GAAP), but minus
Funded Debt of the Trusts to the extent such liabilities are Consolidated under
GAAP.

      "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.

      "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 Assets" shall mean, as of any applicable date of
determination, the sum of (i) 100% of all cash and the value (at book) of all
Permitted Investments and (ii) 75% of the aggregate net book value of Dealer
Loans Receivable and Purchased Contracts; determined on a Consolidated basis for
the Company and its Subsidiaries according to GAAP, but including the amount of
any such assets held by a Special Purpose Subsidiary, whether or not includible
under GAAP, and excluding such assets of the Trusts to the extent such assets
are Consolidated under 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:

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

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            (2)   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;

            (3)   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;

            (4)   any gain (net of tax effects attributable thereto) arising
                  from any reappraisal or write-up of assets and any gain or
                  loss (net of tax effects attributable thereto) arising from
                  the non-cash effect of equity compensation expense;

            (5)   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;

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

            (7)   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;

            (8)   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

            (9)   any restoration during such period to income of any
                  contingency reserve, except to the extent that provision for
                  such reserve was made either

A.    during such period out of income accrued during such period, or

B.    in connection with the Company's program of financing Installment
      Contracts (A) to provide for warranty claims for which the Company may be
      responsible, or (B) to cover credit losses in connection with Dealer Loans
      Receivable or Purchased Contracts.

      "Consolidated Tangible Net Worth" shall mean the total preferred
shareholders' investment and common shareholders' investment (common stock, paid
in capital, retained

                                       7

<PAGE>

earnings and accumulated other comprehensive income, net of tax) as computed for
the Company and its Subsidiaries on a Consolidated basis under GAAP, less assets
properly classified as intangible assets according to GAAP, but excluding from
the determination thereof, without duplication, any excess servicing asset
resulting from the transfer, pursuant to a Permitted Securitization, of Dealer
Loan Pools or Purchased Contracts.

      "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 or treasurer 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 7.7, inclusive, of this Agreement for the applicable fiscal
quarter (or year-end) of the Company, as the case may be, 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.

      "Dealer(s)" shall mean a Person engaged in the business of the retail sale
of new or used motor vehicles, including both businesses exclusively selling
used motor vehicles and businesses principally selling 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 for
purposes of administration, servicing and collection and under which the Company
or its Subsidiary may make loans or advances to such Dealers included in Dealer
Loans Receivable and (ii) accepts outright assignments of Installments Contracts
from Dealers or funds Installments Contracts 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.

      "Dealer Loan(s)" shall mean the advances of cash made by the Company or
any of its Subsidiaries to a Dealer at the time an Installment Contract is
approved, accepted by and assigned to the Company or any of its Subsidiaries
under a Dealer Agreement described in clause (i) of the definition of Dealer
Agreements, against anticipated future collections on Installment Contracts
serviced for such Dealer, as outstanding from time to time.

      "Dealer Loan Pool(s)" shall mean a grouping on the books and records of
the Company or any of its Subsidiaries of Dealer Loans and bearing the same pool
identification number assigned by the Company's computer system, and to which
Dealer Loans and the related Installment Contracts were assigned in the ordinary
course of the Company's business in the order such Dealer Loans were made by the
Company and such Installment Contracts were originated by such Dealer without
the exercise of discretion by the Company (it being understood that the balance
of any Dealer Loan Pool is constantly adjusted to reflect increases due to
additional Dealer Loans made to the related Dealer, other amounts paid to such
Dealer pursuant to the related Dealer Agreement, and revenue accrued with
respect to such balance in accordance with the Company's accounting policies set
forth in its periodic reports filed with the Securities and Exchange Commission,
and to reflect decreases resulting from collections on the

                                        8

<PAGE>

related Installment Contracts and write offs of such Dealer Loans Receivable).
As used herein, (x) an "uncapped" Dealer Loan Pool shall mean a pool which is
not reflected on such books and records as capped and to which additional Dealer
Loans and related financial assets may be added and (y) a Dealer Loan Pool shall
be deemed "capped" when the number of the applicable financial assets in such
pool has reached the limit established from time to time between the relevant
Dealer and the Company or Subsidiary, as applicable, in the ordinary course of
business and consistent with the Company's normal customs and practices in
effect as of the date hereof, such that no further financial assets may be added
to such pool.

      "Dealer Loans Receivable" shall mean, as of any applicable date of
determination, the amount of loans receivable, as such amount would appear in
the Consolidated financial statements of the Company and its Subsidiaries
prepared in accordance with GAAP (net of any reserves established by the Company
as an allowance for credit losses related to such dealer loans receivable,
provided that, for purposes of determining the Borrowing Base and compliance
with the covenants under Section 7.4 through 7.7 hereof, Dealer Loans Receivable
shall not include (a) the net book value of Dealer Loan Pools transferred or
encumbered pursuant to a Permitted Securitization (whether or not attributable
to the Company under GAAP), unless and until such Dealer Loan Pools are
reassigned to the Company or a Domestic Subsidiary of the Company or such
encumbrances are discharged or (b) Dealer Loans which are not secured by the
Installment Contracts relating thereto.

      "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 in
respect of Capitalized Leases, (d) the present value of all payments due under
any arrangement for retention of title or any conditional sale agreement (other
than a Capitalized 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, (e) reimbursement obligations (contingent or otherwise) in
respect of letters of credit, obligations in respect of bankers acceptances, and
(f) its guaranties of any liabilities of another Person constituting liabilities
of a type set forth in clauses (a) through (e), above; provided however that the
obligation of Company or any of its Subsidiaries (i) to remit monies to Dealers
under Dealer Agreements (including, without limitation, with respect to
Installment Contracts, claims or refunds under insurance policies or claims or
refunds under service contracts) or (ii) to make deposits in trust or otherwise
as required under re-insurance agreements and pursuant to state regulatory
requirements shall not be considered Debt of the Company or its Subsidiaries;
and provided further that "Debt" shall also include 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, if any, of Company's long-term
non-credit enhanced senior debt obtained by the Company, from time to time, from
an applicable credit rating agency of recognized national standing in the United
States of America.

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

                                        9

<PAGE>

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

      "Domestic Advance" shall mean any Advance other than a Eurodollar-based
Advance.

      "Domestic Guaranty" shall mean that certain guaranty of all Indebtedness
outstanding from the Company dated as of this Agreement, 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, as amended from time to time.

         "Domestic Subsidiary" shall mean those Subsidiaries of the Company
incorporated under the laws of the United States of America, or any state
thereof, other than the US LLC, so long as it is a Subsidiary of a Foreign
Subsidiary.

      "Effective Date" shall mean February ___, 2006.

      "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 issuance of stock or the
exercise of employee stock options granted pursuant to equity based compensation
plans maintained 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 the Effective
Date to the applicable date of determination, 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 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.

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

      "Eurodollar-based Rate" shall mean a per annum interest rate which is
equal to the sum of the Applicable Margin (subject, if applicable, to adjustment
under Section 4 hereof), plus the quotient of:

      (1)   the per annum interest rate at which deposits in eurodollars are
            offered to Agent's Eurodollar Lending Office by other prime banks in
            the eurodollar market in an amount comparable to the relevant
            Eurodollar-based Advance and for a period

                                       10

<PAGE>

            equal to the relevant Eurodollar-Interest Period at approximately
            11:00 a.m. Detroit time two (2) Business Days prior to the first day
            of such Eurodollar-Interest Period, divided by

      (2)   a percentage equal to 100% minus the maximum rate on such date at
            which Agent is required to maintain reserves on `Eurodollar
            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 Eurodollar
            deposits or includes a category of assets which includes Eurodollar
            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 1/100th of 1%.

      "Eurodollar-Interest Period" shall mean, for Swing Line Advances carried
at the Eurodollar-based Rate, an interest period of seven days, one month (or
any lesser number of days agreed to in advance by Company, Agent and the Swing
Line Bank), and for all other Eurodollar-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, as
applicable, for a Eurodollar-based Advance pursuant to Section 2.3 or 2.5
hereof, as the case may be.

      "Eurodollar 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 Eurodollar
Lending Office by notice to Company 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 Eurodollar Lending Office),
or at such other office, branch or affiliate of such Bank as it may hereafter
designate as its Eurodollar Lending Office by notice to Company and Agent.

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

      "Existing Advance(s)" shall mean Advances made under the Prior Credit
Agreement (as defined therein) which are outstanding on the Effective Date.

      "Existing Letter of Credit" shall mean a letter of credit issued under the
Prior Credit Agreement which is outstanding on the Effective Date hereof as set
forth on Schedule 3.11 attached hereto.

      "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.

                                       11

<PAGE>

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

      "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 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.

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

      "Funded Debt" of any Person shall mean, without duplication, (a) all
indebtedness of such Person for borrowed money or for the deferred purchase
price of property or services as of such date (other than operating leases and
trade liabilities and royalties payable incurred in the ordinary course of
business and payable in accordance with customary practices) or which is
evidenced by a note, bond, debenture or similar instrument, (b) the principal
component of all obligations of such Person under Capitalized Leases, (c) all
reimbursement obligations (actual, contingent or otherwise) of such Person in
respect of letters of credit (other than trade letters of credit), bankers
acceptances or similar obligations issued or created for the account of such
Person, (d) all liabilities of the type described in (a), (b) and (c) above that
are secured by any Liens on any property owned by such Person as of such date
even though such Person has not assumed or otherwise become liable for the
payment thereof, in the case of each of the items in clauses (a) through (d),
the amount of which is determined in accordance with GAAP; provided, however,
that so long as such Person is not personally liable for any such liability, the
amount of such liability shall be deemed to be the lesser of the fair market
value at such date of the property subject to the Lien securing such liability
and the amount of the liability secured, and (e) all Guarantee Obligations in
respect of any liability which constitutes Funded Debt; provided, however, that
Funded Debt shall not include any indebtedness under any Hedging Agreement prior
to the occurrence of a termination event with respect thereto.

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

            (1)   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(i) of this Agreement and demonstrating that the
                  Company would be in compliance with the financial covenants
                  set forth in Sections 7.4 through 7.7 hereof and the Borrowing
                  Base Limitation, if

                                       12

<PAGE>

                  applicable, were such Debt outstanding during the applicable
                  reporting periods;

            (2)   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;

            (3)   If such additional Future 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;

            (4)   Concurrently with the incurring of such additional Future
                  Debt, the proceeds of such Future Debt, net of third party
                  expenses incurred by the Company in connection with the
                  issuance of such Future Debt, shall first be applied to reduce
                  (i) the principal, interest and other amounts under other
                  Future Debt then outstanding or (ii) principal, interest and
                  other amounts owing 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), 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
                  Eurodollar-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 Eurodollar-based Advances of the Revolving
                  Credit (subject to the right to reborrow, as aforesaid); and
                  provided further that Agent and the Banks acknowledge that any
                  proceeds of Future Debt remaining after the application of
                  such proceeds as required by this clause (d) may be held or
                  invested in Permitted Investments or otherwise invested or
                  applied in any manner not prohibited by this Agreement; and

                                       13

<PAGE>

            (5)   If such additional Future Debt is to be secured, the
                  applicable Lien shall arise only pursuant to the Security
                  Agreement and/or the other Collateral Documents and each of
                  the holders of such Future Debt shall become a party to the
                  Intercreditor Agreement and shall execute and deliver such
                  additional or related Loan Documents, as reasonably requested
                  by the Agent.

      "Future Debt" shall mean Debt evidenced by Long Term Notes; provided that
the aggregate principal amount of all such Debt outstanding at any time from and
after the date hereof shall not exceed One Hundred Fifty Million Dollars
($150,000,000); and provided further that, at the time any such Debt is
incurred, the Funding Conditions have been satisfied. For the purposes of this
definition, "Long Term Notes" shall mean unsecured or secured non-revolving
promissory notes to be issued by the Company, which Debt shall have a term
extending at least beyond the Revolving Credit Maturity Date then in effect,
have an amortization schedule not greater than level amortization to maturity
(but with no principal payments required for a period of at least 12 months) and
have no requirement for mandatory early repayment except (x) upon default, (y)
following a change in control or (z) following the sale of any material portion
of the assets of the Company or any of its Subsidiaries, to the extent of the
proceeds of such sale.

      "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.

      "Guarantee Obligation(s)" shall mean as to any Person (the "guaranteeing
person") any obligation of the guaranteeing person in respect of any obligation
of another Person (including, without limitation, any bank under any letter of
credit), the creation of which was evidenced or induced by a reimbursement
agreement, counter-indemnity, endorsement or similar obligation issued by the
guaranteeing person, in either case guaranteeing or in effect guaranteeing any
Debt, leases, dividends or other obligations (the "primary obligations") of any
other third Person (the "primary obligor") in any manner, whether directly or
indirectly, including, without limitation, any obligation of the guaranteeing
person, whether or not contingent, (i) to purchase any such primary obligation
or any property constituting direct or indirect security therefor, (ii) to
advance or supply funds (1) for the purchase or payment of any such primary
obligation or (2) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary
obligor, (iii) to purchase property, securities or services primarily for the
purpose of assuring the owner of any such primary obligation of the ability of
the primary obligor to make payment of such primary obligation or (iv) otherwise
to assure or hold harmless the owner of any such primary obligation against loss
in respect thereof; provided, however, that the term Guarantee Obligation shall
not include endorsements of instruments for deposit or collection in the
ordinary course of business. To the extent not otherwise determinable, the
amount of any Guarantee Obligation of any guaranteeing person shall be deemed to
be the lower of (a) an amount equal to the stated or determinable amount of the
primary obligation (as

                                       14

<PAGE>

outstanding on the applicable date of determination) in respect of which such
Guarantee Obligation is made and (b) the maximum amount for which such
guaranteeing person may be liable pursuant to the terms of the instrument
embodying such Guarantee Obligation, unless such primary obligation and the
maximum amount for which such guaranteeing person may be liable are not stated
or determinable, in which case the amount of such Guarantee Obligation shall be
such guaranteeing person's maximum reasonably anticipated liability in respect
thereof as determined by Company in good faith.

      "Guaranty(ies)" shall mean the Domestic Guaranty and any other guaranty of
the Indebtedness entered into from time to time in accordance with the terms
hereof.

      "Guarantor(s)" shall mean each Significant Subsidiary which is required by
the Banks to guarantee the obligations of the Company 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.

      "Hedging Agreement(s)" shall mean any Interest Rate Protection Agreements
and any foreign currency exchange agreements (including without limitation
foreign currency hedges and swaps) or other foreign exchange transactions, or
any combination of such transactions or agreements or any option with respect to
any such transactions or agreements entered into by Company and/or any of its
Subsidiaries to manage existing or anticipated foreign exchange risk and not for
speculative purposes.

      "Hedging Reserve" shall mean a reserve under the Borrowing Base Limitation
equal to the lesser of (i) One Million Dollars ($1,000,000) and (ii) the
aggregate amount of Net Hedging Obligations outstanding from time to time
(determined in the manner set forth herein) maintained by the Company for the
benefit of those Banks or their Affiliates which provide Hedging Agreements to
the Company or any Domestic Subsidiary under or in connection with this
Agreement, and allocated to such Banks or their Affiliates in the amounts so
determined and reported by the Company in its quarterly Borrowing Base
Certificates or any updated Borrowing Base Certificates from time to time
submitted by the Company hereunder; provided that the adequacy of the amounts
established by the Company for the applicable exposure under a

                                       15

<PAGE>

Hedging Agreement shall be subject to review and approval by the Majority Banks
and each affected Bank, from time to time at the request of such Banks.

      "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 Subsidiary to the
Banks (or any of them) 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 Account
Party to, or acquired by, the Banks or by Agent, and all Net Hedging Obligations
in respect of Hedging Agreements entered into between Company and/or any
Significant Domestic Subsidiary and a Bank or an Affiliate of a Bank (up to the
maximum amount of the Hedging Reserve, as determined and allocated hereunder)
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 purchased outright from Dealers by 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 any Installment Contracts
transferred or encumbered pursuant to a Permitted Securitization or securing
Dealer Loan Pools transferred or encumbered pursuant to a Permitted
Securitization shall, from and after the date of such transfer or encumbrance,
cease to be considered Installment Contracts under this Agreement unless and
until such Installment Contracts or Dealer Loan Pools, as the case may be, are
reassigned to the Company or a Subsidiary of the Company or such encumbrances
are discharged.

      "Intercompany Loans" shall mean any loan or advance in the nature of a
loan by the Company to any Subsidiary or by any Subsidiary to any other
Subsidiary or to the Company.

      "Intercompany Loans, Advances and Investments" shall mean any Intercompany
Loan and any other advance or Investment by the Company to or in a Subsidiary or
by any Subsidiary to or in the Company or any other Subsidiary.

      "Intercompany Note(s)" shall mean the promissory notes substantially in
the form of Exhibit N, attached hereto, issued or to be issued by the Company or
any Subsidiary to evidence an Intercompany Loan, and pledged to the Agent (in
its capacity as Collateral Agent under the Intercreditor Agreement and/or as
Agent hereunder.)

      "Intercreditor Agreement" shall mean that certain Intercreditor Agreement
executed and delivered as of December 15, 1998 by and among the Banks, the
holders of certain other Debt and the Agent, as Collateral Agent thereunder, and
acknowledged and accepted by the Company

                                       16

<PAGE>

and certain of its Subsidiaries, as amended by First Amendment dated as of March
30, 2001 and Second Amendment dated as of June 10, 2002, and as further amended
from time to time.

      "Interest Period" shall mean:

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

            (2)   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 Eurodollar-Interest Period, if the next succeeding Business Day falls in
another calendar month, such Eurodollar-Interest Period shall end on the next
preceding Business Day, and (ii) when a Eurodollar-Interest Period begins on a
day which has no numerically corresponding day in the calendar month during
which such Eurodollar-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.

      "Interest Rate Protection Agreement(s)" shall mean any interest rate,
swap, cap, floor, collar, forward rate agreement or other rate protection
transaction, or any combination of such transactions or agreements or any option
with respect to any such transactions or agreements now existing or hereafter
entered into by Company or any of its Subsidiaries to manage existing or
anticipated interest rate risk and not for speculative purposes.

      "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, Guarantee Obligation or contribution of capital or any
investment in, or purchase or other acquisition of, stocks, notes, debentures or
other securities of such Person.

      "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.

      "Joinder Agreement (Guaranty)" shall mean a joinder agreement in the form
attached as "Exhibit A" to the form of the Domestic Guaranty, to be executed and
delivered by any Person required to be a Guarantor pursuant to Section 7.19 of
this Agreement.

      "Lead Arranger" shall mean Banc of America Securities, LLC, or such
successor lead arranger and sole book manager as appointed by the Company under
Section 12.15 hereof.

                                       17

<PAGE>

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

      "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) Fifteen Million Dollars ($15,000,000); 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 3 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 to Dealers under Dealer
Agreements, 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.

      "Luxembourg Subsidiary" shall mean a wholly-owned direct or indirect
Subsidiary of the Company organized under the laws of Luxembourg.

                                       18

<PAGE>

      "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.

      "Material Adverse Effect" shall mean a material adverse effect on (a) the
business or financial condition of the Company and its Subsidiaries, taken as a
whole, (b) the ability of each of the Company and its Subsidiaries to perform
their material obligations under this Agreement, the Notes (if issued) or any
other Loan Document to which any of them is a party, as the case may be, or (c)
the validity or enforceability of any material provision of this Agreement, any
of the Notes (if issued) or any of the other Loan Documents (as determined by
Agent and the Majority Banks) or the rights or remedies of the Agent or the
Banks hereunder or thereunder.

      "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.

      "Net Hedging Obligation(s)" shall mean, in respect of any one or more
Hedging Agreements, after taking into account the effect of any legally
enforceable netting agreement relating to such Hedging Agreements, (a) for any
date on or after the date such Hedging Agreements have been closed out and
termination value(s) determined in accordance therewith, such termination
value(s), and (b) for any date prior to the date referenced in clause (a), the
amount(s) determined as the mark to market value(s) for such Hedging Agreements,
as determined based upon one or more mid-market or other readily available
quotations provided by any recognized dealer in such Hedging Agreements, which
may include any Bank or Affiliate of such Bank.

      "New Bank" is defined in clause (b) of Section 2.17.

      "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 2.17 hereof.

      "New Restructuring" shall mean a series of transfers, mergers,
amalgamations, dissolutions, liquidations and similar transactions involving
ownership interests (but not involving any transfers of Dealer Loans, Dealer
Loan Pools, Installment Contracts or other financial assets, other than to the
Company or a Significant Domestic Subsidiary) including without limitation the
transfer of the ownership of all of the Company's Foreign Subsidiaries
(including the US LLC) by the T&C Subsidiary to CAC South Dakota and the
liquidation of the T&C Subsidiary (including the release by the Banks of the T&C
Subsidiary from its obligations under the Guaranty and any Collateral Document,
and the release of the Lien over the equity interests of the T&C Subsidiary) and
the release of those debentures, liens or security agreements executed in favor
of the Agent by the Permitted Borrowers (as defined in the Prior Credit
Agreement), and the conversion of CAC Scotland from a "controlled foreign
corporation" (for

                                       19

<PAGE>

purposes of Section 956 of the Internal Revenue Code) to a branch of CAC South
Dakota (pursuant to a "check-the-box election"), such transactions resulting in
the restructuring of the ownership of the Company's foreign subsidiaries as
shown on Exhibit R to the Credit Agreement.

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

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

      "Operating Lease" shall mean any lease under which the Company or any
Subsidiary is a lessee, other than a Capitalized 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.

      "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
or any ERISA Affiliate, 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 (and stated as a percentage and/or a dollar
amount), of the Letters of Credit, 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), including any
such acquisition conducted as a Permitted Merger, of assets, businesses or
business interests or shares of stock or other ownership interests of or in any
other Person conducted in accordance with the following requirements:

            (1)   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);

            (2)   on the date of any such acquisition, all necessary or
                  appropriate governmental, quasi-governmental, agency,
                  regulatory or similar

                                       20

<PAGE>

                  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
                  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;

            (3)   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, in the case of an acquisition of assets,
                  all indebtedness which is assumed or to which such assets are
                  subject and, in the case of the acquisition of stock or other
                  ownership interests, all indebtedness to which such stock or
                  other ownership interests, are subject, shall not exceed Ten
                  Million Dollars ($10,000,000), determined as of the date of
                  such acquisition;

            (4)   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 7.19 hereof, and opinions of counsel, amendments,
                  acknowledgments, consents and evidence of approvals or
                  filings) as reasonably requested by Agent, if any; and

            (5)   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 Dividends" shall mean those dividends and distributions (other
than dividends payable in capital stock of the Company) permitted under Section
8.15 hereof, it being understood that the amount of Permitted Dividends paid in
the form of property other than cash shall be determined by the Company in good
faith using the same methodology that the Company uses to account for dividends
in its periodic reports filed or to be filed with the Securities and Exchange
Commission.

                                       21

<PAGE>

      "Permitted Guaranties" shall mean (i) any Guarantee Obligation provided by
the Company, for the benefit of a Subsidiary, covering the Debt or other
obligation or liability permitted to be incurred or entered into by such
Subsidiary, and any other Guarantee Obligation of the Company in the ordinary
course of business, (ii) any guaranties provided by a Significant Domestic
Subsidiary of the Company of the Debt outstanding to 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 or administrative agent of the Dealer
Loan Pools or Purchased Contracts covered by a Permitted Securitization, to
advance funds equal to the interest component of obligations issued as part of a
Permitted Securitization and payable from collections on the related Installment
Contracts, such payments to be repayable to Company on a priority basis from
such collections, sales or other dispositions, provided that the aggregate
amount of such advances under this clause (iii) at any time outstanding shall
not exceed $1,500,000 and (iv) other Guarantee Obligations of the Company or any
of the Subsidiaries in an aggregate amount not to exceed, at any time
outstanding, $1,000,000.

      "Permitted Investments" shall mean:

            (1)   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 mature within one (1)
                  year from the date of acquisition thereof;

            (2)   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 mature within one (1) year from the date
                  of acquisition thereof;

            (3)   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 mature within one (1) year
                  from the date of acquisition thereof;

            (4)   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

                                       22

<PAGE>

                  by another credit rating agency of recognized national
                  standing in the United States of America); and

            (5)   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

            (6)   Investments by any foreign subsidiary in obligations similar
                  in nature, term and credit quality to those enumerated in
                  paragraphs (a) through (e) above, except that the applicable
                  jurisdiction of formation or operation shall be substituted
                  for the United States of America in each case.

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

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

            (2)   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;

            (3)   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;

            (4)   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;

                                       23

<PAGE>

            (5)   (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;

            (6)   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, could not reasonably be
                  expected to materially adversely affect the present or future
                  use of the property to which they relate, or to have a
                  material adverse effect on the sale or lease of such property,
                  or (iii) render title thereto unmarketable;

            (7)   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

            (8)   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 Guarantor, but excluding any Special Purpose
Subsidiary) or any Person which is being acquired pursuant to a Permitted
Acquisition into Company or (ii) the merger of any Subsidiary or any Person
which is being acquired pursuant to a Permitted Acquisition (other than a
Guarantor) into any other Subsidiary (excluding any Special Purpose Subsidiary)
or any Person

                                       24

<PAGE>

which is being acquired pursuant to a Permitted Acquisition, which, in each
case, satisfies and/or is conducted in accordance with the following
requirements:

            (1)   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);

            (2)   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, if requested by Agent or 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;

            (3)   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

            (4)   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 Future Debt (x) which
is funded solely with the proceeds of (i) new cash equity in the form of
nonconvertible common shares, (ii) Subordinated Debt, or (iii) substitute Debt
permitted hereunder which satisfies the following conditions:

            (1)   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 12 months) and with no provision for mandatory
                  early repayment except (x) upon default, (y) following a
                  change in control or (z) following the sale of any material
                  portion of the assets of the Company or any of its
                  Subsidiaries, to the extent of the proceeds of such sale;

            (2)   such Debt shall be unsecured, or, subject to the Intercreditor
                  Agreement, secured;

                                       25

<PAGE>

            (3)   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

            (4)   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 or (y) which has been
approved by the Majority Banks. Solely for purposes of the definition of
Permitted Prepayment, any Bank which fails, within fifteen (15) Business Days of
receipt of written notice from the Company of its intent to make such prepayment
(identifying the Debt to be prepaid, and the amount of any such prepayment,
captioned "notice of prepayment" and stating that approval is deemed to be given
if an objection is not made within fifteen (15) Business Days of receipt of such
notice), to object in writing to the Company's proposed prepayment shall be
deemed to have approved 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; provided that at the time of
any such purchase, both before and after giving effect thereto, no Default or
Event of Default has occurred and is continuing.

      "Permitted Securitization(s)" shall mean each transfer or encumbrance
(each a "disposition") of specific Dealer Loan Pools (and any interest in and
lien on the Installment Contracts, motor vehicles, and other rights and
financial assets relating thereto) or of specific Purchased Contracts (and any
interest in and lien on motor vehicles and other rights and financial assets
relating thereto), in each case by the Company or one or more of its
Subsidiaries to one or more Special Purpose Subsidiaries conducted in accordance
with the following requirements:

            (1)   Each disposition shall identify with reasonable certainty the
                  specific Dealer Loan Pools or Purchased Contracts, as
                  applicable, covered by such disposition; and (x) such Dealer
                  Loan Pools or Purchased Contracts shall have performance and
                  other characteristics so that the quality of such Dealer Loan
                  Pools or Purchased Contracts, as the case may be, is
                  comparable to, but not materially better than, the overall
                  quality of the Company's Dealer Loan Pools or Purchased
                  Contracts, as applicable, as determined in good faith by the
                  Company in its reasonable discretion or (y) with respect to
                  any such assets assigned to an uncapped Dealer Loan Pool
                  subsequent to such Dealer Loan Pool becoming a Securitized
                  Pool in conformity with the standards set forth in clause (x)
                  of this subparagraph (a), the assets covered by such
                  dispositions were assigned to such Dealer Loan Pool in the
                  order such assets were

                                       26

<PAGE>

                  originated and without the exercise of any discretion by the
                  Company;

            (2)   Both before and after giving effect to such disposition (and
                  taking into account any reduction in the Indebtedness with the
                  proceeds of such disposition as required hereunder), the
                  Company shall be in compliance with the Borrowing Base
                  Limitation, and, in the case of any disposition to an uncapped
                  Securitized Pool, none of the assets covered by such
                  disposition were included, prior to such disposition, in the
                  most recent Borrowing Base Certificate delivered to Agent
                  under Section 7.3(d);

            (3)   Each such Securitization Transaction shall be structured on
                  the basis of the issuance of Debt or other similar securities
                  by one or more Special Purpose Subsidiaries which Debt or
                  other securities shall be without recourse to Company and its
                  other Subsidiaries, 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 (it being understood that, for purposes of this
                  subparagraph (c), the terms and conditions governing
                  Securitization Transactions made by the Company prior to the
                  date of this Agreement shall be deemed to have been made on
                  normal and customary terms and conditions);

            (4)   Concurrently with each such disposition (except for
                  dispositions to an uncapped Securitized Pool whether or not
                  pursuant to a revolving, expansion or relending feature
                  included in a Prior Securitization (for purposes of this
                  definition, a "Revolving Feature"), in each case to the extent
                  that no disposition proceeds are available as a result of such
                  dispositions for application hereunder), the net proceeds of
                  such disposition:

      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 Eurodollar-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

                                       27

<PAGE>

      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 Eurodollar-based Advances of the Revolving Credit; and
      provided further that Agent and the Banks acknowledge that any proceeds of
      any such Debt incurred pursuant to a Permitted Securitization remaining
      after the application of such proceeds as required by this clause (d) may
      be held or invested in Permitted Investments or otherwise invested or
      applied in any manner not prohibited by this Agreement; and

            (5)   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 to be conducted hereunder, the
Company shall provide the following:

A.    to the Agent, (x) not less than three (3) Business Days prior to the date
      of consummation thereof (or such lesser period as approved by Agent) or
      (y) solely in the case of dispositions to uncapped Securitized Pools
      pursuant to a Revolving Feature, not less than three (3) Business Days
      prior to the date of the release of the financial assets covered by such
      disposition (or such lesser period as approved by Agent), (I) a
      certification that, after giving effect to such disposition, it will be in
      compliance with the Borrowing Base Limitation and that none of the assets
      covered by such disposition were included in the most recent quarterly
      Borrowing Base Certificate delivered to Agent under Section 7.3(d) hereof
      prior to such disposition or (II) a new Borrowing Base Certificate (and
      any supporting information reasonably required by the Agent) dated as of
      the proposed date of the applicable disposition or release and, based on
      projected information, giving effect to such disposition and confirming
      compliance with the Borrowing Base Limitation;

B.    to the Agent and the Banks (x) not less than five (5) Business Days prior
      to the date of consummation thereof (or such lesser period as approved by
      Agent), proposed drafts of the material Securitization Documents covering
      the applicable Securitization Transaction (and the term sheet or
      commitment relating thereto) and (y) within ten (10) Business Days
      following the consummation thereof, executed copies of such Securitization
      Documents, including, if applicable, a summary of any material changes
      from the draft documents delivered to Agent and the Banks prior thereto,
      except that if such Securitization Transaction consists solely of
      dispositions pursuant to a Revolving Feature, the Company shall only be
      required (I) under clause (x) of this subparagraph (ii), to deliver to
      Agent, not less than three (3) Business Days prior to the consummation
      thereof (or such lesser period as approved by Agent), a certification that
      the applicable Securitization Documents remain in effect substantially in
      the form previously furnished to Agent and the Banks (or identifying any
      material changes, and attaching any proposed amendment, supplement or
      other document delivered under such prior Securitization

                                       28

<PAGE>

      Documents to effect such dispositions) and (II) under clause (y) of this
      subparagraph (ii), to deliver to Agent executed copies of any such
      amendment, supplement or other document;

C.    except in the case of dispositions to uncapped Securitized Pools, to the
      Agent, not less than three (3) Business Days prior to the date of
      consummation thereof (or such lesser period as approved by Agent), (I) a
      schedule substantially in the form delivered for Permitted Securitizations
      under the Prior Credit Agreement identifying the specific Dealer Loan
      Pools or Purchased Contracts, as applicable, proposed to be covered by
      such transaction, accompanied by (II) a request that the Agent release
      such assets from the Lien of the Security Agreement and a certification
      that the proposed Securitization Transaction (and related dispositions)
      constitutes a Permitted Securitization hereunder, whereupon the financial
      assets covered by such dispositions which have been originated prior to
      the date of such release shall be promptly released by Agent; and in the
      case of a disposition to an uncapped Securitized Pool in a Prior
      Securitization, all remaining financial assets assigned thereafter to the
      applicable uncapped Securitized Pool in the ordinary course, whether
      originated before or after the date of release, shall be so released and
      the Lien of the Security Agreement shall be deemed not to attach to any
      such assets when the Company or any of its Subsidiaries subsequently
      acquires rights in, to or under such assets and such assets are assigned
      to an uncapped Securitized Pool; and

D.    only if the applicable Securitization Transaction is not related to a
      Prior Securitization or involves the disposition or release of any assets
      which were covered by the most recent quarterly Borrowing Base Certificate
      delivered to Agent under Section 7.3(d) hereof and the aggregate net book
      value of the Dealer Loan Pools (as included in Dealer Loans Receivable) or
      Purchased Contracts, as applicable, covered by such dispositions (or
      related series of dispositions) in any calendar month exceeds or would
      exceed (after giving effect to any proposed disposition) Seven Million
      Five Hundred Thousand Dollars ($7,500,000), collection information
      regarding the Installment Contracts securing the Dealer Loan Pools or
      Purchased Contracts of the Company and its Subsidiaries proposed to be
      covered by such transaction (with evidence supporting its determination
      under clause (x) of subparagraph (a) of this definition, if applicable,
      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 Dealer Loan Pools or Purchased Contracts).

      "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 or by the Company or any
Subsidiary to a Domestic Subsidiary (excluding any Special Purpose Subsidiary)
provided that in each case, immediately before and after such transfer, no
Default or Event of Default shall have occurred and be continuing, (iii) any
transfer of property by the Company or a Domestic Subsidiary to a Foreign
Subsidiary, pursuant to the New Restructuring; (iv) any transfer of the capital
stock of a Special Purpose Subsidiary to the Company or to any other Subsidiary
which is not a Special Purpose Subsidiary and (v) any transfer of funds or other
property paid as a dividend by a Subsidiary to the Company or any other
Subsidiary to the extent permitted by clause (i) of Section 8.15 hereof.

                                       29

<PAGE>

      "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, for any day, that rate of interest which is
equal to the sum of the Applicable Margin plus the greater of (i) the Prime
Rate, and (ii) the Alternate Base Rate.

      "Prior Credit Agreement" is defined in Recital A to this Agreement.

      "Prior Securitization" shall mean a Permitted Securitization (and the
related Securitization Documents) consummated prior to the particular
disposition, release or other transaction then being considered.

      "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.

      "Purchased Contract Balance" shall mean, as of any applicable date of
determination, (i) the balance owing in respect of Purchased Contracts, minus
(ii) unearned income with respect to such Installment Contracts and the
allowance for credit losses with respect to such Installment Contracts, in each
case as such amount would be included in the financial statements and related
footnotes of the Company and its Subsidiaries prepared in accordance with GAAP
and reported in the applicable Borrowing Base Certificate, and if such amount is
not shown net of such items, then net of any reserves established by the Company
as an allowance for credit losses related to such Installment Contracts,
provided that, the Purchased Contract Balance shall not include any Purchased
Contracts transferred or encumbered pursuant to a Permitted Securitization
(whether or not attributable to the Company under GAAP), unless and until such
Purchased Contracts are reassigned to the Company or a Domestic Subsidiary of
the Company or such encumbrances are discharged.

      "Purchased Contracts" shall mean Installment Contracts purchased by the
Company or any of its Subsidiaries under Outright Dealer Agreements.

      "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.

      "Refunded Swing Line Advance" is defined in Section 2.5(e) hereof.

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<PAGE>

      "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 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 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 20, 2008, 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 Thirty-Five
Million Dollars ($135,000,000), subject to any increases in the Revolving Credit
Maximum Amount pursuant to Section 2.17 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 to each of the Banks in the form annexed
to this Agreement as Exhibit C, 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 after the Effective Date under Section 2.17 hereof to increase the
Revolving Credit Maximum Amount.

      "Scottish Partnership" shall mean CAC Scotland, a partnership established
by the Company under the law of Scotland and which is a wholly-owned Subsidiary
of the Company.

      "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.

      "Securitization Transaction" shall mean a transfer of, or grant of a Lien
on, Dealer Loan Pools, Purchased Contracts, accounts receivable and/or other
financial assets, and any related pools thereof, by the Company or any
Subsidiary to a Special Purpose Subsidiary or other special

                                       31

<PAGE>

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 Dealer Loan Pools, Purchased Contracts,
accounts receivable and/or other financial assets and any related pools thereof.

      "Securitized Pool(s)" shall mean a Dealer Loan Pool, whether capped or
uncapped, which has been transferred to a Permitted Securitization, including a
Prior Securitization.

      "Security Agreement" is defined in the definition of Collateral Documents.

      "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 (i) which is designated by the Company (in writing to Agent) as a
Significant Subsidiary or (ii) which has total assets (but excluding in the
calculation of total assets, for any Subsidiary, any assets which constitute
Intercompany Loans, Advances and Investments 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) in excess of one percent (1%) of Company's
Consolidated Tangible Net Worth (or five percent (5%) in the case of CAC
Reinsurance, Ltd.), 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 (and giving effect to any changes in net worth shown
in such financial statements on the required date of delivery thereof);
provided, however, that none of any Special Purpose Subsidiary, the Scottish
Partnership, the US LLC (so long as it is considered a Foreign Subsidiary
hereunder) or the Luxembourg Subsidiary shall be a Significant Subsidiary,
whether or not it satisfies the aforesaid net worth test.

      "Significant Domestic Subsidiaries" shall mean those Domestic Subsidiaries
identified as such on Schedule 6.5 hereto, and any Domestic 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(ies)" 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, and issued pursuant to documentation

                                       32

<PAGE>

which is less restrictive (as determined by Agent and the Banks in their
reasonable discretion) than the covenants contained in this Agreement.

      "Subsidiary(ies)" shall mean any other corporation, association, joint
stock company, business trust, limited liability company, partnership (whether
general or limited) or any other business entity of which more than fifty
percent (50%) of the outstanding voting stock, share capital, membership or
other interests, as the case may be, is owned either directly or indirectly by
any Person or one or more of its Subsidiaries, or the management of which is
otherwise controlled, directly, or indirectly through one or more
intermediaries, or both, by any Person and/or its Subsidiaries. Unless otherwise
specified to the contrary herein or the context otherwise requires,
Subsidiary(ies) shall refer to each Person which is a Subsidiary of the Company
and "100% Subsidiary(ies) shall mean any Subsidiary whose stock or partnership,
membership or other equity interests (other than directors' or qualifying shares
or other interests to the extent required under applicable law) are owned
directly or indirectly entirely by the Company.

      "Swing Line" shall mean the revolving credit loan to be advanced to the
Company 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 pursuant to Section 2.5 hereof.

      "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 Fifteen Million Dollars
($15,000,000).

      "Swing Line Notes" shall mean the swing line notes described in Section
2.5 hereof, made by Company 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.

      "S&P" shall mean Standard & Poor's Ratings Group, and its successors.

      "Trusts" shall mean the trusts established in connection with the
Company's vehicle service contract business or other ancillary product business
and required to be Consolidated with the Company and its Subsidiaries under GAAP
pursuant to FIN 46/46R.

      "T&C Subsidiary" shall mean CAC (TCI) Ltd., a wholly-owned Subsidiary of
the Company existing under the laws of the Turks & Caicos Islands.

      "US LLC" shall mean that certain limited liability company chartered in
the United States and established as wholly-owned Subsidiary of Company.

      2. REVOLVING CREDIT

      (a)   Commitment(1) . Subject to the terms and conditions of this
            Agreement (including without limitation Section 2.3 hereof), each
            Bank severally and for itself alone

                                       33

<PAGE>

            agrees to make Advances of the Revolving Credit to the Company from
            time to time on any Business Day during the period from the
            Effective Date hereof until (but excluding) the Revolving Credit
            Maturity Date in an aggregate amount, in Dollars, not to exceed at
            any one time outstanding such Bank's Percentage of the Revolving
            Credit Maximum Amount. All of the Advances of the Revolving Credit
            hereunder shall be evidenced by Revolving Credit Notes made by
            Company to each of the Banks in the form attached hereto as Exhibit
            C, subject to the terms and conditions of this Agreement.

      (b) Accrual of Interest and Maturity. The Revolving Credit Notes, and all
principal and interest outstanding thereunder, shall mature and become due and
payable in full on the Revolving Credit Maturity Date, and each Advance of
Indebtedness evidenced by the Revolving Credit Notes from time to time
outstanding hereunder shall, from and after the date of such Advance, bear
interest at its Applicable Interest Rate. The amount and date of each Advance,
its Applicable Interest Rate, its Interest Period, if any, and the amount and
date of any repayment shall be noted on Agent's records, which records will be
conclusive evidence thereof, absent manifest error; provided, however, that any
failure by the Agent to record any such information shall not relieve the
Company of its obligation to repay the outstanding principal amount of such
Advance, all interest accrued thereon and any amount payable with respect
thereto in accordance with the terms of this Agreement and the other Loan
Documents.

      (c) Requests for and Refundings and Conversions of Advances. Company may
request an Advance of the Revolving Credit, refund any such Advance in the same
type of Advance or convert any such Advance to any other type of Advance of the
Revolving Credit only after delivery to Agent of a Request for Advance executed
by an authorized officer of Company, subject to the following and to the
remaining provisions hereof:

      (1)   each such Request for Advance shall set forth the information
            required on the Request for Advance form annexed hereto as Exhibit
            A, including without limitation:

A.    the proposed date of such Advance, which must be a Business Day;

B.    whether such Advance is a refunding or conversion of an outstanding
      Advance; and

C.    whether such Advance is to be a Prime-based Advance or a Eurodollar-based
      Advance, and, except in the case of a Prime-based Advance, the first
      Interest Period applicable thereto.

      (2)   each such Request for Advance shall be delivered to Agent by 12 noon
            (Detroit time) three (3) Business Days prior to the proposed date of
            Advance, except in the case of a Prime-based Advance, for which the
            Request for Advance must be delivered by 12:00 noon (Detroit time)
            on such proposed date;

      (3)   without duplication, the principal amount of such requested Advance,
            plus the principal amount of any other Advances of the Revolving
            Credit and of the Swing Line being requested on such date, plus the
            principal amount of all other Advances of the Revolving Credit and
            of the Swing Line then outstanding

                                       34

<PAGE>

            hereunder, plus the aggregate undrawn portion of any Letters of
            Credit which shall be outstanding as of the date of the requested
            Advance, the aggregate face amount of Letters of Credit requested
            but not yet issued and the aggregate amount of all drawings made
            under any Letter of Credit for which the Agent has not received full
            reimbursement from the applicable Account Party, shall not exceed
            the lesser of (i) the Revolving Credit Maximum Amount and (ii) the
            Borrowing Base Limitation, in each case then applicable; provided
            however, that, in the case of any Advance of the Revolving Credit
            being applied to refund an outstanding Swing Line Advance, the
            aggregate principal amount of Swing Line Advances to be refunded
            shall not be included for purposes of calculating the limitation
            under this Section 2.3(c);

      (4)   the principal amount of such Advance, plus the amount of any other
            outstanding Advance of the Revolving Credit to be then combined
            therewith having the same Applicable Interest Rate and Interest
            Period, if any, shall be (i) in the case of a Prime-based Advance at
            least Two Million Five Hundred Thousand Dollars ($2,500,000) and
            (ii) in the case of a Eurodollar-based Advance at least Two Million
            Five Hundred Thousand Dollars ($2,500,000) (or a larger integral
            multiple of One Million Dollars ($1,000,000)), and at any one time
            there shall not be in effect more than five (5) Applicable Interest
            Rates and Interest Periods;

      (5)   a Request for Advance, once delivered to Agent, shall not be
            revocable by Company;

      (6)   each Request for Advance shall constitute and include a
            certification by the Company as of the date thereof that:

A.    both before and after such Advance, the obligations of the Company set
      forth in this Agreement and of Company and its Subsidiaries in the other
      Loan Documents to which such Persons are parties are valid, binding and
      enforceable obligations of such Persons;

B.    all conditions to Advances of the Revolving Credit have been satisfied,
      and shall remain satisfied to the date of such Advance (both before and
      after giving effect to such Advance);

C.    there is no Default or Event of Default in existence, and none will exist
      upon the making of such Advance (both before and after giving effect to
      such Advance);

D.    the representations and warranties contained in this Agreement and the
      other Loan Documents are true and correct in all material respects and
      shall be true and correct in all material respects as of the making of
      such Advance, except to the extent such representations and warranties
      (other than Section 6.12 hereof, which shall be deemed to be remade as of
      the date of such Request for purposes of this clause (iv), notwithstanding
      the limitation contained therein) are not, by their terms, continuing
      representations and warranties, but speak only as of a specific date (both
      before and after giving effect to such Advance); and

                                       35

<PAGE>

E.    the execution of such Request for Advance will not violate the material
      terms and conditions of any material contract, agreement or other
      borrowing of Company.

      Agent, acting on behalf of the Banks, may, at its option, lend under this
      Section 2 upon the telephone or e-mail request of a person previously
      authorized (in a writing delivered to the Agent) by the Company to make
      such requests and, in the event Agent, acting on behalf of the Banks,
      makes any such Advance upon a telephone or email request, the requesting
      person shall fax or deliver by electronic file to Agent, promptly
      following such telephone or email request, a Request for Advance. The
      Company hereby authorizes Agent to disburse Advances under this Section
      2.3 pursuant to the telephone or e-mail instructions of any person
      purporting to be a person identified by name on a written list of persons
      authorized by the Company and delivered to Agent prior to the date of such
      request to make Requests for Advance on behalf of the Company.
      Notwithstanding the foregoing, the Company acknowledges that it shall bear
      all risk of loss resulting from disbursements made upon any telephone or
      email request. Each telephone or email request for an Advance shall
      constitute a certification of the matters set forth in the Request for
      Revolving Credit Advance form as of the date of such requested Advance.

      (d)   Disbursement of Advances.

      (1)   Upon receiving any Request for Advance from Company under Section
            2.3 hereof, Agent shall promptly notify each Bank by wire, telex or
            telephone (confirmed by wire, telecopy or telex) of the amount of
            such Advance to be made and the date such Advance is to be made by
            said Bank pursuant to its Percentage of such Advance. Unless such
            Bank's commitment to make Advances of the Revolving Credit hereunder
            shall have been suspended or terminated in accordance with this
            Agreement, each Bank shall make available the amount of its
            Percentage of each Advance in immediately available funds to Agent,
            as follows:

A.    for Domestic Advances, at the office of Agent located at One Detroit
      Center, Detroit, Michigan 48226, not later than 2:00 p.m. (Detroit time)
      on the date of such Advance; and

B.    for Eurodollar-based Advances, at the Agent's Correspondent for the
      account of the Eurodollar Lending Office of the Agent, not later than 12
      noon (the time of the Agent's Correspondent) on the date of such Advance.

      (2)   Subject to submission of an executed Request for Advance by Company
            without exceptions noted in the compliance certification therein,
            Agent shall make available to Company the aggregate of the amounts
            so received by it from the Banks:

A.    for Domestic Advances, not later than 4:00 p.m. (Detroit time) on the date
      of such Advance by credit to an account of Company maintained with Agent
      or to such other account or third party as Company may reasonably direct;
      and

B.    for Eurodollar-based Advances, not later than 4:00 p.m. (the time of the
      Agent's Correspondent) on the date of such Advance, by credit to an
      account of Company

                                       36

<PAGE>

      maintained with Agent's Correspondent or to such other account or third
      party as Company may reasonably direct.

      (3)   Agent shall deliver the documents and papers received by it for the
            account of each Bank to such Bank or upon its order. Unless Agent
            shall have been notified by any Bank prior to the date of any
            proposed Advance that such Bank does not intend to make available to
            Agent such Bank's Percentage of such Advance, Agent may assume that
            such Bank has made such amount available to Agent on such date, as
            aforesaid and may, in reliance upon such assumption, make available
            to Company a corresponding amount. If such amount is not in fact
            made available to Agent by such Bank, as aforesaid, Agent shall be
            entitled to recover such amount on demand from such Bank. If such
            Bank does not pay such amount forthwith upon Agent's demand
            therefor, the Agent shall promptly notify Company and Company shall
            pay such amount to Agent, if such notice is delivered to Company
            prior to 1:00 p.m. (Detroit time) on a Business Day, on the day such
            notice is received, and otherwise on the next Business Day, and such
            amount paid by Company shall be applied as a prepayment of the
            Revolving Credit (without any corresponding reduction in the
            Revolving Credit Maximum Amount), reimbursing Agent for having
            funded said amounts on behalf of such Bank . The Company shall
            retain its claim against such Bank with respect to the amounts
            repaid by it to Agent and, if such Bank subsequently makes such
            amounts available to Agent, Agent shall promptly make such amounts
            available to the Company as an Advance of the Revolving Credit.
            Agent shall also be entitled to recover from such Bank or Company,
            as the case may be, but without duplication, interest on such amount
            in respect of each day from the date such amount was made available
            by Agent to Company to the date such amount is recovered by Agent,
            at a rate per annum equal to:

A.    in the case of such Bank, with respect to Domestic Advances, the Federal
      Funds Effective Rate, and with respect to Eurodollar-based Advances,
      Agent's aggregate marginal cost (including the cost of maintaining any
      required reserves or deposit insurance and of any fees, penalties,
      overdraft charges or other costs or expenses incurred by Agent as a result
      of such failure to deliver funds hereunder) of carrying such amount; and

B.    in the case of Company, the rate of interest then applicable to such
      Advance of the Revolving Credit.

The obligation of any Bank to make any Advance of the Revolving Credit hereunder
shall not be affected by the failure of any other Bank to make any Advance
hereunder, and no Bank shall have any liability to the Company or any of its
Subsidiaries, the Agent, any other Bank, or any other party for another Bank's
failure to make any loan or Advance hereunder. In the event any Bank shall fail
to advance any amounts required to be advanced in accordance with the terms of
this Article 2 (a "Defaulting Bank"), the Agent shall promptly provide written
notice thereof to the Company and to each other Bank (each such other Bank being
referred to in this Section as a "Non-Defaulting Bank"). Each Non-Defaulting
Bank shall have ten (10) Business Days from receipt of said notice to exercise
its option to agree to enter into an agreement pursuant to which the
Non-Defaulting Bank shall assume the Defaulting Bank's rights and obligations
under this

                                       37

<PAGE>

Agreement, its Notes and the other Loan Documents. The Non-Defaulting Bank shall
exercise such option by providing written notice of same to the Defaulting Bank
(and if there is more than one Non-Defaulting Bank, the assignment agreement
shall be entered into with the Non-Defaulting Bank who first notifies the
Defaulting Bank of its decision to exercise said option) and to Company. If no
Non-Defaulting Bank shall exercise the above-described option within the said
ten (10) Business Day period and if Company shall, subject to Section 13.8(c)
hereof, within thirty (30) days of delivering the notice described above, advise
such Defaulting Bank of another bank or financial institution to which
assignments are permitted pursuant to Section 13.8(c) hereof and which is
willing to assume such Defaulting Bank's rights and obligations under this
Agreement, its Notes and the other Loan Documents (each such bank or financial
institution being hereinafter referred to as a "Potential Financial
Institution"), such Defaulting Bank shall, subject to Section 13.8(c), assign
its said rights and obligations to the Potential Financial Institution; provided
however that any such assignment shall not alter Company's rights or remedies
vis-a-vis the Defaulting Bank.

      (e)   Swing Line.

      (1)   Advances. The Swing Line Bank shall, on the terms and subject to the
            conditions hereinafter set forth (including without limitation
            Section 2.5(c) hereof), make one or more advances (each such advance
            being a "Swing Line Advance") to Company from time to time on any
            Business Day during the period from the date hereof to (but
            excluding) the Revolving Credit Maturity Date in an aggregate
            amount, in Dollars, not to exceed at any time outstanding the Swing
            Line Maximum Amount. The amount and dates of each Swing Line
            Advance, its applicable Interest Rate, its Interest Period, if any,
            and the amount and date of any repayment shall be noted on the
            Agent's records, which records will be conclusive evidence thereof,
            absent manifest error. All Swing Line Advances shall be evidenced by
            the Swing Line Notes, under which advances, repayments and
            readvances may be made, subject to the terms and conditions of this
            Agreement. Each Swing Line Advance shall mature and the principal
            amount thereof shall be due and payable by Company on the last day
            of the Interest Period applicable thereto. In no event whatsoever
            shall any outstanding Swing Line Advance be deemed to reduce, modify
            or affect any Bank's commitment to make Revolving Credit Advances
            based upon its Percentage. The obligation of the Swing Line Bank to
            make Advances of the Swing Line hereunder may be terminated at any
            time by Swing Line Bank upon written notice to Company and Agent
            concurrently with such termination, provided that a Default or Event
            of Default exists at the time such notice is given.

      (2)   Accrual of Interest. Each Swing Line Advance shall, from time to
            time after the date of such Advance, bear interest at its Applicable
            Interest Rate. The amount and date of each Swing Line Advance, its
            Applicable Interest Rate, its Interest Period, if any, and the
            amount and date of any repayment shall be noted on Agent's records,
            which records will be conclusive evidence thereof, absent manifest
            error; provided, however, that any failure by the Agent to record
            any such information shall not relieve Company of its obligation to
            repay the outstanding principal amount of such Advance, all interest
            accrued thereon and

                                       38

<PAGE>

            any amount payable with respect thereto in accordance with the terms
            of this Agreement and the other Loan Documents.

      (3)   Requests for Swing Line Advances. Company may request a Swing Line
            Advance only after delivery to Swing Line Bank of a Request for
            Swing Line Advance executed by an authorized officer of Company,
            subject to the following and to the remaining provisions hereof:

A.    each such Request for Swing Line Advance shall set forth the information
      required on the Request for Swing Line Advance form annexed hereto as
      Exhibit F, including without limitation:

      (1)   the proposed date of such Swing Line Advance, which must be a
            Business Day;

      (2)   whether such Swing Line Advance is to be a Prime-based Advance, a
            Eurodollar-based Advance or a Quoted Rate Advance; and

      (3)   the duration of the Interest Period applicable thereto.

B.    without duplication, the principal amount of such requested Swing Line
      Advance, plus the aggregate principal amount of all other Swing Line
      Advances and all Advances of the Revolving Credit then outstanding
      hereunder (including any Revolving Credit Advances or other Swing Line
      Advances requested to be made on such date), determined pursuant to the
      terms hereof as of the date of such requested Advance), and the aggregate
      undrawn portion of any Letters of Credit which shall be outstanding as of
      the date of the requested Swing Line Advance, plus the aggregate face
      amount of Letters of Credit requested but not yet issued, plus the
      unreimbursed amount of any draws under Letters of Credit shall not exceed
      the lesser of (A) the Revolving Credit Maximum Amount and (B) the
      Borrowing Base Limitation, in each case then applicable;

C.    the principal amount of such Swing Line Advance, plus the amount of any
      other outstanding Advance of the Swing Line to be then combined therewith
      having the same Applicable Interest Rate and Interest Period, if any,
      shall be (i) in the case of a Prime-based Advance at least Three Hundred
      Thousand Dollars ($300,000) and (ii) in the case of a Quoted Rate Advance
      or a Eurodollar-based Advance at least Three Hundred Thousand Dollars
      ($300,000) (or a larger integral multiple of One Hundred Thousand Dollars
      ($100,000)), and at any one time there shall not be in effect more than
      Five (5) Applicable Interest Rates and Interest Periods;

D.    each such Request for Swing Line Advance shall be delivered to the Swing
      Line Bank, by 12:00 noon (Detroit time) on the proposed date of the
      Advance; and

E.    each Request for Swing Line Advance, once delivered to Swing Line Bank,
      shall not be revocable by Company, and shall constitute and include a
      certification by the Company as of the date thereof that:

                                       39

<PAGE>

      (1)   both before and after such Swing Line Advance, the obligations of
            the Company set forth in this Agreement and of the Company and its
            Subsidiaries in the Loan Documents, are valid, binding and
            enforceable obligations of such Persons;

      (2)   all conditions to the making of Swing Line Advances have been
            satisfied (both before and after giving effect to such Advance);

      (3)   both before and after the making of such Swing Line Advance, there
            is no Default or Event of Default in existence; and

      (4)   both before and after such Swing Line Advance, the representations
            and warranties contained in this Agreement and the other Loan
            Documents are true and correct in all material respects, except to
            the extent such representations and warranties (other than Section
            6.12 hereof, which shall be deemed to be remade as of the date of
            such Request for purposes of this clause (D), notwithstanding the
            limitation contained therein) are not, by their terms, continuing
            representations and warranties, but speak only as of a specific
            date.

      Swing Line Bank, may, at its option, lend under this Section 2.5(c) upon
the telephone or email request of a person previously authorized (in a writing
delivered to the Agent) by Company to make such requests and, in the event Swing
Line Bank makes any such Advance upon a telephone or email request, the
requesting person shall fax or deliver by electronic file to Swing Line Bank,
promptly following such telephone or email request, a Request for Swing Line
Advance. Company hereby authorizes Swing Line Bank to disburse Advances under
this Section 2.5(c) pursuant to the telephone or e-mail instructions of any
person purporting to be a person identified by name on a written list of persons
authorized by the Company to make Requests for Advance on behalf of the Company.
Notwithstanding the foregoing, the Company acknowledges that Company shall bear
all risk of loss resulting from disbursements made upon any telephone or e-mail
request. Each telephone or e-mail request for an Advance shall constitute a
certification of the matters set forth in the Request for Swing Line Advance
form as of the date of such requested Advance. Swing Line Bank shall promptly
deliver to Administrative Agent by telecopy or by electronic file a copy of any
Request for Advance received hereunder.

      (4)   Disbursement of Swing Line Advances. Subject to submission of an
            executed Request for Swing Line Advance by Company without
            exceptions noted in the compliance certification therein and to the
            other terms and conditions hereof, Swing Line Bank shall make
            available to Company the amount so requested not later than:

A.    for Prime-based Advances or Quoted Rate Advances, not later than 4:00 p.m.
      (Detroit time) on the date of such Advance by credit to an account of
      Company maintained with Agent or to such other account or third party as
      Company may reasonably direct; and

B.    for Eurodollar-based Advances, not later than 4:00 p.m. (the time of the
      Agent's Correspondent) on the date of such Advance, by credit to an
      account of Company or to such other account or third party as Company may
      reasonably direct.

                                       40

<PAGE>

Swing Line Bank shall promptly notify Agent of any Swing Line Advance by
telephone, telex or telecopier.

      (5)   Refunding of or Participation Interest in Swing Line Advances.

A.    The Agent, at any time in its sole and absolute discretion, may (or, upon
      the request of the Swing Line Bank, shall) on behalf of the Company (which
      hereby irrevocably directs the Agent to act on its behalf) request each of
      the Banks (including the Swing Line Bank in its capacity as a Bank) to
      make an Advance of the Revolving Credit to Company, in an amount equal to
      such Bank's Percentage of the principal amount of the aggregate Swing Line
      Advances outstanding to each such party on the date such notice is given
      (the "Refunded Swing Line Advances"); provided that at any time as there
      shall be a Swing Line Advance outstanding for more than thirty days, the
      Agent shall, on behalf of the Company (which hereby irrevocably directs
      the Agent to act on its behalf), promptly request each Bank (including the
      Swing Line Bank) to make an Advance of the Revolving Credit in an amount
      equal to such Bank's Percentage of the principal amount of such
      outstanding Swing Line Advance. In the case of each Refunded Swing Line
      Advance, the applicable Advance of the Revolving Credit used to refund
      such Swing Line Advance shall be a Prime-based Advance. In connection with
      the making of any such Refunded Swing Line Advances or the purchase of a
      participation interest in Swing Line Advances under Section 2.5(e)(ii)
      hereof, the Swing Line Bank shall retain its claim against the Company for
      any unpaid interest or fees in respect thereof. Unless any of the events
      described in Section 9.1(j) hereof shall have occurred (in which event the
      procedures of subparagraph (ii) of this Section 2.5(e) shall apply) and
      regardless of whether the conditions precedent set forth in this Agreement
      to the making of an Advance of the Revolving Credit are then satisfied but
      subject to Section 2.5(e)(iii), each Bank shall make the proceeds of its
      Advance of the Revolving Credit available to the Agent for the benefit of
      the Swing Line Bank at the office of the Agent specified in Section 2.4(a)
      hereof prior to 11:00 a.m. Detroit time on the Business Day next
      succeeding the date such notice is given, except in the case of an
      Eurodollar-based Advance, in which case such proceeds shall be made
      available, prior to 2:00 p.m. Detroit time on the third Business Day
      following the date such notice is given. The proceeds of such Advances of
      the Revolving Credit shall be immediately applied to repay the Refunded
      Swing Line Advances in accordance with the provisions of Section 10.1
      hereof.

B.    If, prior to the making of an Advance of the Revolving Credit pursuant to
      subparagraph (i) of this Section 2.5(e), one of the events described in
      Section 9.1(j) hereof shall have occurred, each Bank will, on the date
      such Advance of the Revolving Credit was to have been made, purchase from
      the Swing Line Bank an undivided participating interest in each Refunded
      Swing Line Advance in an amount equal to its Percentage of such Refunded
      Swing Line Advance. Each Bank within the time periods specified in Section
      2.5(e)(i) hereof, as applicable, shall immediately transfer to the Agent,
      in immediately available funds, the amount of its participation and upon
      receipt thereof the Agent will deliver to such Bank a participation
      certificate evidencing such participation.

                                       41

<PAGE>

C.    Each Bank's obligation to make Advances of the Revolving Credit and to
      purchase participation interests in accordance with clauses (i) and (ii)
      above shall, except in respect of any Swing Line Advance made by the Swing
      Line Bank more than one (1) Business Day after it has received written
      notice to suspend Swing Line Advances in accordance with the last
      paragraph of this Section 2.5(d)(iii), be absolute and unconditional and
      shall not be affected by any circumstance, including, without limitation,
      (A) any set-off, counterclaim, recoupment, defense or other right which
      such Bank may have against Swing Line Bank, the Company or any other
      Person for any reason whatsoever; (B) the occurrence or continuance of any
      Default or Event of Default; (C) any adverse change in the condition
      (financial or otherwise) of the Company, or any other Person; (D) any
      breach of this Agreement by the Company or any other Person; (E) any
      inability of the Company to satisfy the conditions precedent to borrowing
      set forth in this Agreement on the date upon which such participating
      interest is to be purchased or (F) any other circumstance, happening or
      event whatsoever, whether or not similar to any of the foregoing. If any
      Bank does not make available to the Agent the amount required pursuant to
      clause (i) or (ii) above, as the case may be, the Agent shall be entitled
      to recover such amount on demand from such Bank, together with interest
      thereon for each day from the date of non-payment until such amount is
      paid in full at the Federal Funds Effective Rate for Advances (other than
      Eurodollar-based Advances) and for Eurodollar-based Advances, the Agent's
      marginal cost (including the cost of maintaining any required reserves or
      deposit insurance and of any fees, penalties, overdraft charges or other
      costs or expenses incurred by Agent as a result of such failure to deliver
      funds hereunder) of carrying such amount.

      Notwithstanding the foregoing, however, no Bank shall be required to make
any Advances of the Revolving Credit to refund a Swing Line Advance or to
purchase a participation in a Swing Line Advance if more than one (1) Business
Day prior to the making of the applicable Swing Line Advance by the Swing Line
Bank, the Agent had received written notice from any Bank that a Default or
Event of Default had occurred and was continuing and directing that Swing Line
Advances should be suspended based on such occurrence and continuance of a
Default or Event of Default; provided, however that the obligation of the Banks
to make such Advances of the Revolving Credit (or purchase such participations)
shall be reinstated upon the date on which such Default or Event of Default has
been cured, or has been waived by the requisite Banks, as applicable.

      (f) Prime-based Interest Payments. Interest on the unpaid balance of all
Prime-based Advances of the Revolving Credit and all Swing Line Advances carried
at the Prime-based Rate from time to time outstanding shall accrue from the date
of such Advance to the Revolving Credit Maturity Date (and until paid), at a per
annum interest rate equal to the Prime-based Rate, and shall be payable in
immediately available funds (a) with respect to Swing Line Advances, monthly
commencing on the first day of the calendar month next succeeding the calendar
month during which the initial Swing Line Advance is made and on the first day
of each month thereafter, and (b) with respect to Advances of the Revolving
Credit, quarterly commencing on the first day of the calendar quarter next
succeeding the calendar month during which the initial Advance of the Revolving
Credit is made and on the first day of each calendar quarter thereafter.
Interest accruing at the Prime-based Rate shall be computed on the basis of a
360 day year and assessed for the actual number of days elapsed, and in such
computation effect shall be given to

                                       42

<PAGE>

any change in the interest rate resulting from a change in the Prime-based Rate
on the date of such change in the Prime-based Rate.

      (g) Eurodollar-based Interest Payments and Quoted Rate Interest Payments.

      (1)   Interest on each Eurodollar-based Advance of the Revolving Credit
            and all Swing Line Advances carried at the Eurodollar-based Rate
            shall accrue at its Applicable Interest Rate and shall be payable in
            immediately available funds on the last day of the Interest Period
            applicable thereto (and, if any Interest Period shall exceed three
            months, then on the last Business Day of the third month of such
            Interest Period, and at three month intervals thereafter). Interest
            accruing at the Eurodollar-based Rate shall be computed on the basis
            of a 360 day year and assessed for the actual number of days elapsed
            from the first day of the Interest Period applicable thereto to but
            not including the last day thereof.

      (2)   Interest on each Quoted Rate Advance of the Swing Line shall accrue
            at its Quoted Rate and shall be payable in immediately available
            funds on the last day of the Interest Period applicable thereto.
            Interest accruing at the Quoted Rate shall be computed on the basis
            of a 360 day year and assessed for the actual number of days elapsed
            from the first day of the Interest Period applicable thereto to, but
            not including the last day thereof.

      (h) Interest Payments on Conversions. Notwithstanding anything to the
contrary in the preceding sections, all accrued and unpaid interest on any
Advance converted pursuant to Section 2.3 hereof shall be due and payable in
full on the date such Advance is converted.

      (i) Interest on Default. In the event and so long as any Event of Default
shall exist, in the case of any Event of Default under Sections 9.1(a), 9.1(b)
or 9.1(j), immediately upon the occurrence thereof, and in the case of all other
Events of Default, upon notice from the Majority Banks, interest shall be
payable daily on all Eurodollar-based Advances of the Revolving Credit, Swing
Line Advances carried at the Eurodollar-based Rate and Quoted Rate Advances from
time to time outstanding at a per annum rate equal to the Applicable Interest
Rate plus two percent (2%) for the remainder of the then existing Interest
Period, if any, and at all other such times, with respect to Prime-based
Advances from time to time outstanding, at a per annum rate equal to the
Prime-based Rate plus two percent (2%).

      (j) Prepayment. (1) Company may prepay all or part of the outstanding
balance of any Prime-based Advance(s) under the Revolving Credit Note at any
time, provided that the amount of any partial prepayment shall be at least One
Million Dollars ($1,000,000) and, after giving effect to any such partial
prepayment, the aggregate balance of Prime-based Advance(s) of the Revolving
Credit remaining outstanding, if any, shall be at least One Million Dollars
($1,000,000). Company may prepay all or part of any Eurodollar-based Advance
(subject to not less than three (3) Business Days' notice to Agent) only on the
last day of the Interest Period therefor, provided that the amount of any such
partial prepayment shall be at least One Million Dollars ($1,000,000), and,
after giving effect of any such partial prepayment, the unpaid portion of such
Advance which is refunded or converted under Section 2.3 hereof shall be at
least Two Million Five Hundred Thousand Dollars ($2,500,000).

                                       43

<PAGE>

      (1)   Company may prepay all or part of the outstanding balance of any
            Swing Line Advance carried at the Prime-based Rate at any time,
            provided that the amount of any partial prepayment shall be at least
            One Hundred Thousand Dollars ($100,000) and, after giving effect of
            any such partial prepayment, the aggregate balance of such Swing
            Line Advances remaining outstanding, if any, shall be at least One
            Hundred Thousand Dollars ($100,000). Company may prepay all or part
            of any Swing Line Advances carried at the Eurodollar-based Rate or
            Quoted Rate (subject to not less than three (3) Business Days'
            notice to Swing Line Bank and Agent) only on the last day of the
            Interest Period therefor, provided that the amount of any such
            partial payment shall be at least One Hundred Thousand Dollars
            ($100,000), after giving effect of any such partial prepayment, and
            the unpaid portion of such Advance which is refunded or converted
            under Section 2.5(c) hereof shall be at least One Hundred Thousand
            Dollars ($100,000).

      (2)   Any prepayment made in accordance with this Section shall be without
            premium, penalty or prejudice to the right to reborrow under the
            terms of this Agreement. Any other prepayment of all or any portion
            of any Advance of the Revolving Credit or any Swing Line Advance
            shall be subject to Section 11.1 hereof, but otherwise without
            premium, penalty or prejudice.

      (k) Intentionally Omitted.

      (l) Prime-based Advance in Absence of Election or Upon Default. If, (1) as
to any outstanding Eurodollar-based Advance of the Revolving Credit, or any
Swing Line Advance carried at the Eurodollar-based Rate, Agent has not received
payment on the last day of the Interest Period applicable thereto, or does not
receive a timely Request for Advance meeting the requirements of Section 2.3 or
2.5(c) hereof with respect to the refunding or conversion of such Advance, or
(b) subject to Section 2.9 hereof, if on such day a Default or an Event of
Default shall have occurred and be continuing, then the principal amount thereof
which is not then prepaid in the case of a Eurodollar-based Advance shall,
absent a contrary election of the Majority Banks, be converted automatically to
a Prime-based Advance and the Agent shall thereafter promptly notify Company of
said action.

      (m) Revolving Credit Facility Fee.

      (1)   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 April 1, 2006 (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

                                       44

<PAGE>

            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.

      (2)   Commitment Fee. On the Effective Date, the Company shall pay to the
            Agent, for distribution to the Banks in accordance with this clause
            (b), a Commitment Fee, such Commitment Fee to be calculated as
            follows: (i) in the case of a Bank which holds a Percentage of the
            Revolving Credit Maximum Amount which is less than $20,000,000, the
            Commitment Fee shall be determined by multiplying 60 basis points
            times an amount equal to such Bank's Percentage of the Maximum
            Revolving Credit Amount, and (ii) in the case of a Bank which holds
            a Percentage of the Revolving Credit Maximum Amount which is greater
            than or equal to $20,000,000, the Commitment Fee shall be determined
            by multiplying 75 basis points times an amount equal to such Bank's
            Percentage of the Revolving Credit Maximum Amount.

      (3)   Additional Commitment Fee. If, at any time after the Effective Date,
            the remaining maturity of the Revolving Credit shall be less than
            366 days, the Company shall be obligated to pay the Agent, for
            distribution to the Banks in accordance with this clause (c), an
            Additional Commitment Fee, such Additional Commitment Fee to be
            calculated as follows: (i) in the case of a Bank which holds a
            Percentage of the Revolving Credit Maximum Amount which is less than
            $20,000,000, the Additional Commitment Fee shall be determined by
            multiplying 10 basis points times an amount equal to such Bank's
            Percentage of the Revolving Credit Maximum Amount, and (ii) in the
            case of a Bank which holds a Percentage of the Revolving Credit
            Maximum Amount which is greater than or equal to $20,000,000, the
            Additional Commitment Fee shall be determined by multiplying 20
            basis points times an amount equal to such Bank's Percentage of the
            Revolving Credit Maximum Amount. The Additional Commitment Fee, if
            applicable, shall be due and payable 360 days prior to the Revolving
            Credit Maturity Date then in effect.

      (n) Mandatory Reduction of Indebtedness. If at any time and for any
reason, the aggregate principal amount (without duplication) of all Advances of
the Revolving Credit hereunder to the Company, plus the aggregate principal
amount of Swing Line Advances outstanding hereunder as of such time, plus the
aggregate undrawn portion of any Letters of Credit which shall be outstanding,
plus the undrawn amount of all Letters of Credit requested but not yet issued,
plus the unreimbursed amount of any draws under any Letters of Credit, as of
such time exceeds the lesser of (x) the Revolving Credit Maximum Amount and (y)
the Borrowing Base Limitation, in each case then applicable, (as used herein,
the "Excess"), the Company shall immediately reduce any pending request for an
Advance on such day by the amount of the Excess, to the extent thereof and, to
the extent any Excess remains thereafter, repay any Advances of the Revolving
Credit or Swing Line Advances in an amount equal to the lesser of the
outstanding amount of such Advances and the amount of such remaining Excess,
with such amounts to be applied between the Advances of the Revolving Credit and
the Swing Line Advances as determined by the Agent and then, to the extent that
any Excess remains after payment in full of all Advances of the Revolving Credit
and Swing Line Advances, to provide

                                       45

<PAGE>

cash collateral in support of any outstanding Letter of Credit Obligations in an
amount equal to the lesser of the amount of such Letter of Credit Obligations
and the amount of such remaining Excess, with such cash collateral to be
provided on the basis set forth in Section 9.2 hereof. Company acknowledges
that, in connection with any repayment required hereunder, it shall also be
responsible for the reimbursement of any prepayment or other costs required
under Section 11.1 hereof; provided, however, that Company shall, in order to
reduce any such prepayment costs and expenses, first prepay such portion of the
Indebtedness then carried as a Prime-based Advance, if any.

      Compliance with this Section 2.14 shall be tested on a daily or other
basis satisfactory to Agent in its sole discretion. To the extent that, on the
date any mandatory repayment under this Section 2.14 is due, the Indebtedness
under the Revolving Credit or any other Indebtedness to be prepaid is being
carried, in whole or in part, at the Eurodollar-based Rate and no Default or
Event of Default has occurred and is continuing, Company may deposit the amount
of such mandatory prepayment 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
upon such deposit the obligation of Company to make such mandatory prepayment
shall be deemed satisfied. Subject to the terms and conditions of said cash
collateral account, sums on deposit in said cash collateral account 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
Eurodollar-based Advances, thereby avoiding breakage costs.

      (o) 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 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, if any, accrued
to the date of such reduction; (iii) the Company shall prepay in accordance with
the terms hereof the amount, if any, by which the aggregate unpaid principal
amount of Advances of the Revolving Credit, plus the aggregate principal amount
of Swing Line Advances outstanding hereunder, plus without duplication the
aggregate undrawn amount of outstanding Letters of Credit, plus without
duplication the unreimbursed amount of any draws under any Letters of Credit,
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 Eurodollar-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 Eurodollar-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, 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.

                                       46

<PAGE>

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 Eurodollar-based Advances of the Revolving Credit and then to
Swing Line Advances carried at the Eurodollar-based Rate or the Quoted Rate.

      (p) Extension of Revolving Credit Maturity Date. Provided that no Default
or Event of Default has occurred and is continuing, Company may, by written
notice to Agent and each Bank (which notice shall be irrevocable and which shall
not be deemed effective unless actually received by Agent and each Bank), prior
to April 15, but not before March 15, of each year beginning in 2007 request
that the Banks extend the then applicable Revolving Credit Maturity Date to a
date that is 364 days later than the Revolving Credit Maturity Date then in
effect (each such request, a "Request").

      Each Bank shall, not later than thirty (30) calendar days following the
date of its receipt of a Request, give written notice to the Agent stating
whether such Bank is willing to extend the Revolving Credit Maturity Date as
requested. If Agent has received the aforesaid written approvals of such Request
from each of the Banks, then, effective on (but not before) such Revolving
Credit Maturity Date (so long as no Default or Event of Default has occurred and
is continuing and none of the Banks has withdrawn its approval, in writing,
prior thereto), the Revolving Credit Maturity Date shall be so extended for an
additional period of 364 days, the term Revolving Credit Maturity Date shall
mean such extended date and Agent shall promptly notify the Company and the
Banks that such extension has occurred. If (i) any Bank gives the Agent written
notice that it is unwilling to extend the Revolving Credit Maturity Date as
requested or (ii) any Bank fails to provide written approval to Agent of the
Request within thirty (30) calendar days of the date of Agent's receipt of such
Request, or (iii) withdraws its approval in writing prior to the Revolving
Credit Maturity Date then in effect then (x) the Banks shall be deemed to have
declined to extend the Revolving Credit Maturity Date, (y) the then-current
Revolving Credit Maturity Date shall remain in effect (with no further right on
the part of Company, to request extensions thereof under this Section 2.16) and
(z) the commitments of the Banks to make Advances of the Revolving Credit
hereunder shall terminate on the Revolving Credit Maturity Date then in effect,
and Agent shall promptly notify Company and the Banks thereof.

      (q) Optional Increase in Revolving Credit Maximum Amount. Provided that no
Default or Event of Default has occurred and is continuing, and provided that
the Company has not previously elected to terminate the Revolving Credit Maximum
Amount under Section 2.15 hereof, the Company may request that the Revolving
Credit Maximum Amount be increased in an aggregate amount (for all such Requests
under this Section 2.17) not to exceed the Revolving Credit Optional Increase,
subject, in each case, to Section 11.1 hereof and to the satisfaction
concurrently with or prior to the date of each such request of the following
conditions:

      (1)   the Company shall have delivered to the Agent not less than thirty
            (30) days prior to the Revolving Credit Maturity Date then in effect
            a written request for such increase, specifying the amount of
            Revolving Credit Optional Increase thereby requested (each such
            request, a "Request for Increase"); provided, however that in

                                       47

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            the event the Company has previously delivered a Request for
            Increase pursuant to this Section 2.17, the Company may not deliver
            a subsequent Request for Increase until all the conditions to
            effectiveness of such first Request for Increase have been fully
            satisfied hereunder (or such Request for Increase has been
            withdrawn); and provided further that the Company may make no more
            than two Requests for Increase in any calendar year;

      (2)   a lender or lenders meeting the requirements of Section 13.8(c)
            hereof and acceptable to the Company and the Agent (including, for
            the purposes of this Section 2.17, any existing Bank which agrees to
            increase its commitment hereunder, the "New Bank(s)") shall have
            become a party to this Agreement by executing and delivering a New
            Bank Addendum for a minimum amount (including for the purposes of
            this Section 2.17, the existing commitment of any existing Bank) for
            each such New Bank of Ten Million Dollars ($10,000,000) and an
            aggregate amount for all such New Banks of that portion of the
            Revolving Credit Optional Increase, taking into account the amount
            of any prior increase in the Revolving Credit Maximum Amount
            (pursuant to this Section 2.17), covered by the applicable Request,
            provided, however that each New Bank shall remit to the Agent funds
            in an amount equal to its Percentage (after giving effect to this
            Section 2.17) of all Advances of the Revolving Credit then
            outstanding, such sums to be reallocated among and paid to the
            existing Banks based upon the new Percentages as determined below;

      (3)   the Company (i) shall have paid to the Agent for distribution to the
            existing Banks, as applicable, all interest, fees (including the
            Revolving Credit Facility Fee and the Letter of Credit Fees) and
            other amounts, if any, accrued to the effective date of such
            increase and any breakage fees attributable to the reduction (prior
            to the last day of the applicable Interest Period) of any
            outstanding Eurodollar-based Advances, calculated on the basis set
            forth in Section 11.1 hereof as though Company has prepaid such
            Advances and (ii) shall have paid to each New Bank a special letter
            of credit fee on the Letters of Credit outstanding on the effective
            date of such increase, calculated on the basis of the Letter of
            Credit Fees which would be applicable to such Letters of Credit if
            issued on the date of such increase, for the period from the
            effective date of such increase to the expiration date of such
            Letters of Credit;

      (4)   the Company shall have executed and delivered to the Agent new
            Revolving Credit Notes payable to each of the New Banks in the face
            amount of each such New Bank's Percentage of the Revolving Credit
            Maximum Amount (after giving effect to this Section 2.17) and, if
            applicable, renewal and replacement Revolving Credit Notes payable
            to each of the existing Banks in the face amount of each such Bank's
            Percentage of the Revolving Credit Maximum Amount (after giving
            effect to this Section 2.17), each of such Revolving Credit Notes to
            be substantially in the form of Exhibit C to the Credit Agreement,
            as applicable, and dated as of the effective date of such increase
            (with appropriate insertions relevant to such Notes and acceptable
            to the applicable Bank, including the New Banks);

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<PAGE>

      (5)   except to the extent such representations and warranties (other than
            Section 6.12 hereof which shall be deemed to be remade as of such
            date for purposes of this clause (e), notwithstanding the limitation
            contained therein) are not, by their terms, continuing
            representations and warranties, but speak only as of a specific
            date, the representations and warranties made by Company, each
            Guarantor or any other party to any of the Loan Documents (excluding
            the Agent and Banks) in this Agreement or any of the other Loan
            Documents, and the representations and warranties of any of the
            foregoing which are contained in any certificate, document or
            financial or other statement furnished at any time hereunder or
            thereunder or in connection herewith or therewith shall have been
            true and correct in all material respects when made and shall be
            true and correct in all material respects on and as of the effective
            date of such increase; and (ii) no Default or Event of Default shall
            have occurred and be continuing as of such date; and

      (6)   such other amendments, acknowledgments, consents, documents,
            instruments, any registrations, if any, shall have been executed and
            delivered and/or obtained by Company as required by Agent or the
            Majority Banks, in their reasonable discretion.

      Promptly on or after the date on which all of the conditions to such
Request for Increase set forth above have been satisfied, Agent shall notify the
Company and each of the Banks of the amount of the Revolving Credit Maximum
Amount as increased pursuant this Section 2.17 and the date on which such
increase has become effective and shall prepare and distribute to Company and
each of the Banks (including the New Banks) a revised Exhibit D to the Credit
Agreement setting forth the applicable new Percentages of the Banks (including
the New Bank(s), taking into account such increase and assignments (if any).

      (r) Revolving Credit as Renewal; Application of Advances; Existing
Advances. (a) The Revolving Credit Notes issued by the Company hereunder shall
constitute renewal and replacement evidence of all present Indebtedness of such
parties outstanding under the Revolving Credit Notes issued under the Prior
Credit Agreement. Advances of the Revolving Credit (including Swing Line
Advances) shall be available, subject to the terms hereof, to fund working
capital needs or other general corporate purposes of the Company.

      (b) Each Existing Advance shall be deemed for all purposes of this
Agreement to be an Advance under this Agreement.

      3. LETTERS OF CREDIT.

      (a) Letters of Credit. Subject to the terms and conditions of this
Agreement, Agent may through the Issuing Office, at any time and from time to
time from and after the date hereof until thirty (30) days prior to the
Revolving Credit Maturity Date, upon the written request of an Account Party
accompanied by a duly executed Letter of Credit Agreement and such other
documentation related to the requested Letter of Credit as the Agent may
require, issue standby or documentary Letters of Credit (denominated in Dollars)
for the account of such Account Party, in an aggregate amount for all Letters of
Credit issued hereunder at any one time outstanding not to exceed the Letter of
Credit Maximum Amount. Each Letter of Credit shall be

                                       49

<PAGE>

in a minimum face amount of One Hundred Thousand Dollars ($100,000) and shall
have an expiration date not later than one (1) year from its date of issuance;
provided that each Letter of Credit (including any renewal thereof) shall expire
not later than ten (10) Business Days prior to the Revolving Credit Maturity
Date in effect on the date of issuance thereof. The submission of all
applications in respect of and the issuance of each Letter of Credit hereunder
shall be subject in all respects to the Uniform Customs and Practices for
Documentary Credits of the International Chamber of Commerce, 1993 Revisions,
ICC Publication No. 500 or, if applicable, ISP 98, and any successor
documentation thereto, as selected by the Agent. In the event of any conflict
between this Agreement and any Letter of Credit Document other than any Letter
of Credit, this Agreement shall control.

      (b) Conditions to Issuance. No Letter of Credit shall be issued at the
request and for the account of any Account Party unless, as of the date of
issuance of such Letter of Credit:

      (1)   without duplication, the face amount of the Letter of Credit
            requested, plus the face amount of all other Letters of Credit of
            all Account Parties requested on such date, plus the aggregate
            undrawn portion of all other Letters of Credit of all Account
            Parties as of such date, plus the face amount of all Letters of
            Credit of all Account Parties requested but not yet issued as of
            such date, plus the unreimbursed amount of any draws under Letters
            of Credit of all Account Parties, does not exceed the Letter of
            Credit Maximum Amount;

      (2)   without duplication, the undrawn amount of the Letter of Credit
            requested, plus the undrawn amount of all other Letters of Credit of
            all Account Parties requested on such date, plus the aggregate
            undrawn portion of all other Letters of Credit of all Account
            Parties as of such date, plus the undrawn amount of all Letters of
            Credit of all Account Parties requested but not yet issued as of
            such date, plus the unreimbursed amount of any draws under Letters
            of Credit of all Account Parties as of such date, plus the aggregate
            principal amount of all Advances outstanding under the Revolving
            Credit Notes and the Swing Line Notes, including any Advances
            requested to be made on such date, do not exceed the lesser of (i)
            the Revolving Credit Maximum Amount and (ii) the Borrowing Base
            Limitation, in each case then applicable;

      (3)   the obligations of Company set forth in this Agreement and the other
            Loan Documents are valid, binding and enforceable obligations of
            Company and the valid, binding and enforceable nature of this
            Agreement and the other Loan Documents has not been disputed by
            Company;

      (4)   the representations and warranties contained in this Agreement and
            the other Loan Documents are true in all material respects as if
            made on such date, except to the extent such representations and
            warranties (other than Section 6.12 hereof, which shall be deemed to
            be remade as of the date of issuance of such Letter of Credit for
            purposes of this clause (d), notwithstanding the limitation
            contained therein) are not, by their terms, continuing
            representations and warranties, but speak only as of a specific
            date, and both immediately before and immediately after issuance of
            the Letter of Credit requested, no Default or Event of Default
            exists;

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<PAGE>

      (5)   the execution of the Letter of Credit Agreement with respect to the
            Letter of Credit requested will not violate the terms and conditions
            of any contract, agreement or other borrowing of Company;

      (6)   the Account Party requesting the Letter of Credit shall have
            delivered to Agent at its Issuing Office, not less than five (5)
            Business Days prior to the requested date for issuance (or such
            shorter time as the Agent, in its sole discretion, may permit), the
            Letter of Credit Agreement related thereto, together with such other
            documents and materials as may be required pursuant to the terms
            thereof, and the terms of the proposed Letter of Credit shall be
            satisfactory to Agent and its Issuing Office;

      (7)   no order, judgment or decree of any court, arbitrator or
            governmental authority shall purport by its terms to enjoin or
            restrain Agent from issuing the Letter of Credit requested, or any
            Bank from taking an assignment of its Percentage thereof pursuant to
            Section 3.6 hereof, and no law, rule, regulation, request or
            directive (whether or not having the force of law) shall prohibit or
            request that Agent refrain from issuing, or any Bank refrain from
            taking an assignment of its Percentage of, the Letter of Credit
            requested or letters of credit generally;

      (8)   there shall have been no introduction of or change in the
            interpretation of any law or regulation that would make it unlawful
            or unduly burdensome for the Agent to issue or any Bank to take an
            assignment of its Percentage of the requested Letter of Credit (as
            determined in the sole discretion of Agent or such Bank, as the case
            may be), no suspension of or material limitation on trading on the
            New York Stock Exchange or any other national securities exchange,
            no declaration of a general banking moratorium by banking
            authorities in the United States, Michigan or the respective
            jurisdictions in which the Banks, the applicable Account Party and
            the beneficiary of the requested Letter of Credit are located, and
            no establishment of any new restrictions on transactions involving
            letters of credit or on banks materially affecting (as determined by
            Agent) the extension of credit by banks; and

      (9)   Agent shall have received the issuance fees required in connection
            with the issuance of such Letter of Credit pursuant to Section 3.5
            hereof.

Each Letter of Credit Agreement submitted to Agent pursuant hereto shall
constitute the certification by the Company and the Account Party of the matters
set forth in Section 3.2 (a) through (e) hereof. The Agent shall be entitled to
rely on such certification without any duty of inquiry.

      (c) Notice. Agent shall give notice, substantially in the form attached as
Exhibit I, to each Bank of the issuance of each Letter of Credit, not later than
three (3) Business Days after issuance of each Letter of Credit, specifying the
amount thereof and the amount of such Bank's Percentage thereof.

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<PAGE>

      (d) Letter of Credit Fees. Company shall pay to the Agent for distribution
to the Banks in accordance with their Percentages, Letter of Credit Fees as
follows:

      (1)   A per annum Letter of Credit Fee with respect to the undrawn amount
            of each Letter of Credit issued pursuant hereto in the amount of the
            Applicable Fee Percentage (determined with reference to Schedule 1.1
            to this Agreement), inclusive of the facing fee of one-eighth of one
            percentage point (1/8%) per annum on the face amount thereof to be
            retained by Agent under Section 3.5 hereof.

      (2)   If any change in any law or regulation or in the interpretation
            thereof by any court or administrative or governmental authority
            charged with the administration thereof shall either (i) impose,
            modify or cause to be deemed applicable any reserve, special
            deposit, limitation or similar requirement against letters of credit
            issued or participated in by, or assets held by, or deposits in or
            for the account of, Agent or any Bank or (ii) impose on Agent or any
            Bank any other condition regarding this Agreement or the Letters of
            Credit, and the result of any event referred to in clause (i) or
            (ii) above shall be to increase the cost or expense to Agent or such
            Bank of issuing or maintaining or participating in any of the
            Letters of Credit (which increase in cost or expense shall be
            determined by the Agent's or such Bank's reasonable allocation of
            the aggregate of such cost increases and expense resulting from such
            events), then, upon demand by the Agent or such Bank, as the case
            may be, the Company shall, within ten days following demand for
            payment, pay to Agent or such Bank, as the case may be, from time to
            time as specified by the Agent or such Bank, additional amounts
            which shall be sufficient to compensate the Agent or such Bank for
            such increased cost and expense, together with interest on each such
            amount from ten days after the date demanded until payment in full
            thereof at the Prime-based Rate. A certificate as to such increased
            cost or expense incurred by the Agent or such Bank, as the case may
            be, as a result of any event mentioned in clause (i) or (ii) above,
            submitted to the Company, shall be conclusive evidence, absent
            manifest error, as to the amount thereof.

      (3)   All payments by the Company to the Agent or the Banks under this
            Section 3.4 shall be made in Dollars and in immediately available
            funds at the Issuing Office or such other office of the Agent as may
            be designated from time to time by written notice to the Company by
            the Agent. The fees described in clause (a) above shall be
            nonrefundable under all circumstances, shall be payable
            semi-annually in advance (or such lesser period, if applicable, for
            Letters of Credit issued with stated expiration dates of less than
            six months) upon the issuance of each such Letter of Credit, and
            shall be calculated on the basis of a 360 day year and assessed for
            the actual number of days from the date of the issuance thereof to
            the stated expiration thereof.

      (e) Issuance Fees. In connection with the Letters of Credit, and in
addition to the Letter of Credit Fees (including a letter of credit facing fee
of one-eighth of one percentage point (1/8%) to be retained by Agent for its own
account), the Company or the applicable Account

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<PAGE>

Party shall pay, for the sole account of the Agent, standard documentation,
administration, payment and cancellation charges assessed by Agent or the
Issuing Office, at the times, in the amounts and on the terms set forth or to be
set forth from time to time in the standard fee schedule of the Issuing Office
in effect from time to time.

      (f) Draws and Demands for Payment Under Letters of Credit.

      (1)   The Company and each applicable Account Party agree to pay to the
            Agent, on the day on which the Agent shall honor a draft or other
            demand for payment presented or made under any Letter of Credit, an
            amount equal to the amount paid by the Agent in respect of such
            draft or other demand under such Letter of Credit and all expenses
            paid or incurred by the Agent relative thereto. Unless the Company
            or the applicable Account Party shall have made such payment to the
            Agent on such day, upon each such payment by the Agent, the Agent
            shall be deemed to have disbursed to the Company or the applicable
            Account Party, and the Company or the applicable Account Party shall
            be deemed to have elected to substitute for its reimbursement
            obligation a Prime-based Advance of the Revolving Credit for the
            account of the Banks in an amount equal to the amount so paid by the
            Agent in respect of such draft or other demand under such Letter of
            Credit. Such Prime-based Advance shall be deemed disbursed
            notwithstanding any failure to satisfy any conditions for
            disbursement of any Advance set forth in Section 3 hereof and, to
            the extent of the Advances so disbursed, the reimbursement
            obligation of the Company or the applicable Account Party under this
            Section 3.6 shall be deemed satisfied.

      (2)   If the Agent shall honor a draft or other demand for payment
            presented or made under any Letter of Credit, the Agent shall
            provide notice thereof to the Company and the applicable Account
            Party on the date such draft or demand is honored, and to each Bank
            on such date unless the Company or applicable Account Party shall
            have satisfied its reimbursement obligation under Section 3.6(a)
            hereof by payment to the Agent on such date. The Agent shall further
            use reasonable efforts to provide notice to the Company and the
            applicable Account Party prior to honoring any such draft or other
            demand for payment, but such notice, or the failure to provide such
            notice, shall not affect the rights or obligations of the Agent with
            respect to any Letter of Credit or the rights and obligations of the
            parties hereto, including without limitation the obligations of the
            Company or applicable Account Party under Section 3.6(a) hereof.

      (3)   Upon issuance by the Agent of each Letter of Credit hereunder
            (except in respect of any Letter of Credit issued after Agent has
            obtained actual knowledge that an Event of Default has occurred and
            is continuing), each Bank shall automatically acquire a pro rata
            participation interest in such Letter of Credit and each related
            Letter of Credit Payment based on its respective Percentage. Each
            Bank, on the date a draft or demand under any Letter of Credit is
            honored (or the next succeeding Business Day if the notice required
            to be given by Agent to the Banks under Section 3.6(b) hereof is not
            given to the Banks prior to 2:00 p.m. (Detroit time) on such date of
            draft or demand), shall make its Percentage of the amount

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<PAGE>

            paid by the Agent, and not reimbursed by the Company or applicable
            Account Party on such day, available in immediately available funds
            at the principal office of the Agent for the account of the Agent.
            If and to the extent such Bank shall not have made such pro rata
            portion available to the Agent, such Bank, the Company and the
            applicable Account Party severally agree to pay to the Agent
            forthwith on demand such amount together with interest thereon, for
            each day from the date such amount was paid by the Agent until such
            amount is so made available to the Agent at a per annum rate equal
            to the interest rate applicable during such period to the related
            Advance deemed to have been disbursed under Section 3.6(a) in
            respect of the reimbursement obligation of the Company and the
            applicable Account Party, as set forth in Section 2.4(c)(i) or
            2.4(c)(ii) hereof, as the case may be. If such Bank shall pay such
            amount to the Agent together with such interest, such amount so paid
            shall be deemed to constitute an Advance by such Bank disbursed in
            respect of the reimbursement obligation of the Company or applicable
            Account Party under Section 3.6(a) hereof for purposes of this
            Agreement, effective as of the dates applicable under said Section
            3.6(a). The failure of any Bank to make its pro rata portion of any
            such amount paid by the Agent available to the Agent shall not
            relieve any other Bank of its obligation to make available its pro
            rata portion of such amount, but no Bank shall be responsible for
            failure of any other Bank to make such pro rata portion available to
            the Agent.

      Notwithstanding the foregoing, however, no Bank shall be deemed to have
acquired a participation in a Letter of Credit if, prior to the issuance of the
Letter of Credit by the Agent, the Agent had received written notice from any
Bank that a Default or an Event of Default had occurred and was continuing and
directing the Agent to suspend the issuance of Letters of Credit; provided,
however that the Banks shall be deemed to have acquired such a participation
upon the date of which such Default or Event of Default has been cured or has
been waived by the requisite Revolving Credit Banks, as applicable.

      (4)   Nothing in this Agreement shall be construed to require or authorize
            any Bank to issue any Letter of Credit, it being recognized that the
            Agent shall be the sole issuer of Letters of Credit under this
            Agreement.

      (g) Obligations Irrevocable. The obligations of Company and any Account
Party to make payments to Agent or the Banks with respect to Letter of Credit
Obligations under Section 3.6 hereof, shall be unconditional and irrevocable and
not subject to any qualification or exception whatsoever, including, without
limitation:

      (1)   Any lack of validity or enforceability of any Letter of Credit or
            any documentation relating to any Letter of Credit or to any
            transaction related in any way to any Letter of Credit (the "Letter
            of Credit Documents");

      (2)   Any amendment, modification, waiver, consent, or any substitution,
            exchange or release of or failure to perfect any interest in
            collateral or security, with respect to or under any of the Letter
            of Credit Documents;

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<PAGE>

      (3)   The existence of any claim, setoff, defense or other right which the
            Company or any Account Party may have at any time against any
            beneficiary or any transferee of any Letter of Credit (or any
            persons or entities for whom any such beneficiary or any such
            transferee may be acting), the Agent or any Bank or any other person
            or entity, whether in connection with any of the Letter of Credit
            Documents, the transactions contemplated herein or therein or any
            unrelated transactions;

      (4)   Any draft or other statement or document presented under any Letter
            of Credit proving to be forged, fraudulent, invalid or insufficient
            in any respect or any statement therein being untrue or inaccurate
            in any respect;

      (5)   Payment by the Agent to the beneficiary under any Letter of Credit
            against presentation of documents which do not comply with the terms
            of such Letter of Credit, including failure of any documents to bear
            any reference or adequate reference to such Letter of Credit;

      (6)   Any failure, omission, delay or lack on the part of the Agent or any
            Bank or any party to any of the Letter of Credit Documents to
            enforce, assert or exercise any right, power or remedy conferred
            upon the Agent, any Bank or any such party under this Agreement, any
            of the other Loan Documents or any of the Letter of Credit
            Documents, or any other acts or omissions on the part of the Agent,
            any Bank or any such party; or

      (7)   Any other event or circumstance that would, in the absence of this
            Section 3.7, result in the release or discharge by operation of law
            or otherwise of Company or any Account Party from the performance or
            observance of any obligation, covenant or agreement contained in
            Section 3.6 hereof.

No setoff, counterclaim, reduction or diminution of any obligation or any
defense of any kind or nature which Company or any Account Party has or may have
against the beneficiary of any Letter of Credit shall be available hereunder to
Company or any Account Party against the Agent or any Bank. Nothing contained in
this Section 3.7 shall be deemed to prevent Company or the Account Parties,
after satisfaction in full of the absolute and unconditional obligations of
Company and the Account Parties hereunder, from asserting in a separate action
any claim, defense, set off or other right which they (or any of them) may have
against Agent or any Bank.

      (h) Risk Under Letters of Credit. (1) In the administration and handling
of Letters of Credit and any security therefor, or any documents or instruments
given in connection therewith, Agent shall have the sole right to take or
refrain from taking any and all actions under or upon the Letters of Credit.

      (1)   Subject to other terms and conditions of this Agreement, Agent shall
            issue the Letters of Credit and shall hold the documents related
            thereto in its own name and shall make all collections thereunder
            and otherwise administer the Letters of Credit in accordance with
            Agent's regularly established practices and procedures and, except
            pursuant to Section 12.3 hereof, Agent will have no further
            obligation with respect thereto. In the administration of Letters of
            Credit, Agent shall not be

                                       55

<PAGE>

            liable for any action taken or omitted on the advice of counsel,
            accountants, appraisers or other experts selected by Agent with due
            care and Agent may rely upon any notice, communication, certificate
            or other statement from Company, any Account Party, beneficiaries of
            Letters of Credit, or any other Person which Agent believes to be
            authentic. Agent will, upon request, furnish the Banks with copies
            of Letter of Credit Agreements, Letters of Credit and documents
            related thereto.

      (2)   In connection with the issuance and administration of Letters of
            Credit and the assignments hereunder, Agent makes no representation
            and shall have no responsibility with respect to (i) the obligations
            of Company or any Account Party or the validity, sufficiency or
            enforceability of any document or instrument given in connection
            therewith, or the taking of any action with respect to same, (ii)
            the financial condition of, any representations made by, or any act
            or omission of, Company, the applicable Account Party or any other
            Person, or (iii) any failure or delay in exercising any rights or
            powers possessed by Agent in its capacity as issuer of Letters of
            Credit in the absence of its gross negligence or willful misconduct.
            Each of the Banks expressly acknowledges that they have made and
            will continue to make their own evaluations of Company's and the
            Account Parties' creditworthiness without reliance on any
            representation of Agent or Agent's officers, agents and employees.

      (3)   If at any time Agent shall recover any part of any unreimbursed
            amount for any draw or other demand for payment under a Letter of
            Credit, or any interest thereon, Agent shall receive same for the
            pro rata benefit of the Banks in accordance with their respective
            Percentages and shall promptly deliver to each Bank its share
            thereof, less such Bank's pro rata share of the costs of such
            recovery, including court costs and attorney's fees. If at any time
            any Bank shall receive from any source whatsoever any payment on any
            such unreimbursed amount or interest thereon in excess of such
            Bank's Percentage of such payment, such Bank will promptly pay over
            such excess to Agent, for redistribution in accordance with this
            Agreement.

      (i) Indemnification. (1) The Company and each Account Party hereby
indemnifies and agrees to hold harmless the Banks and the Agent, and their
respective officers, directors, employees and agents, from and against any and
all claims, damages, losses, liabilities, costs or expenses of any kind or
nature whatsoever which the Banks or the Agent or any such person may incur or
which may be claimed against any of them by reason of or in connection with any
Letter of Credit, and neither any Bank nor the Agent or any of their respective
officers, directors, employees or agents shall be liable or responsible for: (i)
the use which may be made of any Letter of Credit or for any acts or omissions
of any beneficiary in connection therewith; (ii) the validity, sufficiency or
genuineness of documents or of any endorsement thereon, even if such documents
should in fact prove to be in any or all respects invalid, insufficient,
fraudulent or forged; (iii) payment by the Agent to the beneficiary under any
Letter of Credit against presentation of documents which do not comply with the
terms of any Letter of Credit (unless such payment resulted from the gross
negligence or willful misconduct of the Agent), including failure of any
documents to bear any reference or adequate reference to such Letter of Credit;

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<PAGE>

(iv) any error, omission, interruption or delay in transmission, dispatch or
delivery of any message or advice, however transmitted, in connection with any
Letter of Credit; or (v) any other event or circumstance whatsoever arising in
connection with any Letter of Credit; provided, however, that Company and
Account Parties shall not be required to indemnify the Banks and the Agent and
such other persons, and the Agent shall be liable to the Company and the Account
Parties to the extent, but only to the extent, of any direct, as opposed to
consequential or incidental, damages suffered by Company and the Account Parties
which were caused by the Agent's gross negligence, willful misconduct or
wrongful dishonor of any Letter of Credit after the presentation to it by the
beneficiary thereunder of a draft or other demand for payment and other
documentation strictly complying with the terms and conditions of such Letter of
Credit.

      (1)   It is understood that in making any payment under a Letter of Credit
            the Agent will rely on documents presented to it under such Letter
            of Credit as to any and all matters set forth therein without
            further investigation and regardless of any notice or information to
            the contrary. It is further acknowledged and agreed that Company or
            an Account Party may have rights against the beneficiary or others
            in connection with any Letter of Credit with respect to which Agent
            or the Banks are alleged to be liable and it shall be a condition of
            the assertion of any liability of Agent or the Banks under this
            Section that Company or the applicable Account Party shall
            contemporaneously pursue all remedies in respect of the alleged loss
            against such beneficiary and any other parties obligated or liable
            in connection with such Letter of Credit and any related
            transactions.

      (j) Right of Reimbursement. Each Bank agrees to reimburse the Agent on
demand, pro rata in accordance with its respective Percentage, for (i) the
reasonable out-of-pocket costs and expenses of the Agent to be reimbursed by
Company or any Account Party pursuant to any Letter of Credit Agreement or any
Letter of Credit, to the extent not reimbursed by Company or any Account Party
and (ii) any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, fees, reasonable out-of-pocket expenses or
disbursements of any kind and nature whatsoever which may be imposed on,
incurred by or asserted against Agent (in its capacity as issuer of any Letter
of Credit) in any way relating to or arising out of this Agreement, any Letter
of Credit, any documentation or any transaction relating thereto, or any Letter
of Credit Agreement, to the extent not reimbursed by Company or any Account
Party, except to the extent that such liabilities, losses, costs or expenses
were incurred by Agent solely as a result of Agent's gross negligence or willful
misconduct or by the Agent's wrongful dishonor of any Letter of Credit after the
presentation to it by the beneficiary thereunder of a draft or other demand for
payment and other documentation strictly complying with the terms and conditions
of such Letter of Credit.

      (k) Existing Letters of Credit. Each Existing Letter of Credit shall be
deemed for all purposes of this Agreement to be a Letter of Credit, and each
application submitted in connection with each Existing Letter of Credit shall be
deemed for all purposes of this Agreement to be a Letter of Credit Agreement. On
the date of execution of this Agreement, the Agent shall be deemed automatically
to have sold and transferred, and each other Bank shall be deemed automatically,
irrevocably, and unconditionally to have purchased and received from the Agent,
without recourse or warranty, an undivided interest and participation (on the
terms set forth herein), to the extent of such other Bank's Percentage, in each
Existing Letter of Credit and the

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applicable reimbursement obligations with respect thereto and any security
therefor or guaranty pertaining thereto. Letter of Credit Fees paid under the
Prior Credit Agreement shall not be recalculated, redistributed or reallocated
by Agent to the Banks; provided that the Company shall pay to any new Banks
becoming parties hereto on the Effective Date (or any existing Bank increasing
its Percentage on such date) a special letter of credit fee on the Existing
Letters of Credit, calculated on the basis of the Letter of Credit Fees which
would be applicable to such Existing Letters of Credit if issued on the date
hereof (but in the case of any existing Bank, computed only to the extent of the
applicable increase in its Percentage) for the period from the Effective Date to
the expiration date of such Existing Letters of Credit.

      4. INTENTIONALLY OMITTED

      5. CONDITIONS

      The obligations of Banks to make Advances or loans pursuant to this
Agreement are subject to the following conditions, provided however that
Sections 5.1 through 5.8 below shall only apply to the initial Advances or loans
hereunder:

      (a) Execution of Notes, this Agreement and the other Loan Documents. The
Company (on or before the date hereof) shall have executed and delivered to the
Agent for the account of each Bank, the Revolving Credit Notes if requested by
the Banks, the Swing Line Notes if requested by the Swing Line Bank (solely for
the account of the Swing Line Bank), this Agreement (including all schedules,
exhibits, certificates, opinions, financial statements and other documents to be
delivered pursuant hereto), an amended and restated Domestic Guaranty, an
amended and restated Security Agreement and amendments to or reaffirmations of
the Collateral Documents and other Loan Documents (or new documents), as
required hereunder, and, as applicable, such Revolving Credit Notes, the Swing
Line Notes, this Agreement and the other Loan Documents shall be in full force
and effect.

      (b) Corporate Authority. Agent shall have received, with a counterpart
thereof for each Bank: (i) certified copies of resolutions of the Board of
Directors of the Company and each Guarantor evidencing approval of the form of
this Agreement, the Notes and the other Loan Documents to which such Person is a
party and authorizing the execution, delivery and performance thereof and, in
the case of the Company, the borrowing of Advances hereunder; (ii) (A) certified
copies of the Company's and each Guarantor's (which is incorporated or formed in
the United States) articles of incorporation and bylaws or other constitutional
documents, as applicable, certified as true and complete as of a recent date by
the appropriate official of the jurisdiction of incorporation of each such
entity (or, if unavailable in such jurisdiction, by a responsible officer of
such entity); and (B) a certificate of good standing from the state of the
Company's or such Guarantor's (which is incorporated or formed in the United
States) incorporation or formation, as applicable.

      (c) Representations and Warranties -- All Parties. The representations and
warranties made by the Company or any other party to any of the Loan Documents
under this Agreement or any of the other Loan Documents (excluding the Agent and
the Banks), and the representations and warranties of any of the foregoing which
are contained in any certificate, document or financial or other statement
furnished at any time hereunder or thereunder or in connection

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<PAGE>

herewith or therewith shall have been true and correct in all material respects
when made and shall be true and correct in all material respects on and as of
the date of the making of the initial Advance hereunder.

      (d) Compliance with Certain Documents and Agreements. The Company (and any
of its Subsidiaries or Affiliates) shall have each performed and complied with
all agreements and conditions contained in this Agreement, the other Loan
Documents, or any agreement or other document executed hereunder or thereunder
and required to be performed or complied with by each of them (as of the
applicable date) and none of such parties shall be in default in the performance
or compliance with any of the terms or provisions hereof or thereof.

      (e) Company's Certificate and Opening Borrowing Base Certificate. The
Agent shall have received, with a signed counterpart for each Bank, a
certificate of a responsible senior officer of Company, dated the date of the
making of the initial Advances hereunder, stating that the conditions set forth
in this Section 5 have been fully satisfied, accompanied by a Borrowing Base
Certificate dated as of the proposed Effective Date.

      (f) Payment of Agent's and Other Fees. Company shall have paid to the Lead
Arranger any arranger's fee under any fee letter in effect as of the date hereof
between Company and the Lead Arranger, to the Agent the Closing Fee (for
distribution to the Banks hereunder), and to the Agent, the Agent's Fees and all
costs and expenses required hereunder.

      (g) Opinions. The Agent shall have received an opinion of counsel to
Company and the Guarantors, in form and substance acceptable to the Agent.

      (h) Other Documents and Instruments. The Agent shall have received, with a
photocopy for each Bank, such other instruments and documents as the Majority
Banks may reasonably request in connection with the making of Advances
hereunder, and all such instruments and documents shall be satisfactory in form
and substance to the Majority Banks.

      (i) Continuing Conditions. The obligations of the Banks to make any of the
Advances or loans under this Agreement, including but not limited to the initial
Advances of the Revolving Credit or the Swing Line hereunder, shall be subject
to the following continuing conditions:

      (1)   No Default or Event of Default shall have occurred and be continuing
            as of the making of the proposed Advance (both before and after
            giving effect thereto);

      (2)   There shall have been no material adverse change in the condition
            (financial or otherwise), properties, business, results of
            operations of the Company or its Subsidiaries, taken as a whole,
            from September 30, 2005, or any subsequent December 31st, except
            changes in the ordinary course of business unless the Agent
            determines, with the concurrence of the Majority Banks, based on the
            Company's financial statements for such subsequent fiscal year (or
            portion thereof) that a material adverse change has occurred during
            such year, such determination being made solely for purposes of
            determining the applicable date under this paragraph to the date of
            the proposed Advance hereunder;

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<PAGE>

      (3)   The representations and warranties contained in this Agreement and
            the other Loan Documents are true and correct in all material
            respects as of the making of the applicable Advance, except to the
            extent such representations and warranties are not, by their terms,
            continuing representations and warranties, but speak only as of a
            specific date; and

      (4)   All documents executed or submitted pursuant hereto shall be
            satisfactory in form and substance (consistent with the terms
            hereof) to Agent and its counsel and to each of the Banks; Agent and
            its counsel and each of the Banks and their respective counsel shall
            have received all information, and such counterpart originals or
            such certified or other copies of such materials, as Agent or its
            counsel and each of the Banks and their respective counsel may
            reasonably request; and all other legal matters relating to the
            transactions contemplated by this Agreement (including, without
            limitation, matters arising from time to time as a result of changes
            occurring with respect to any statutory, regulatory or decisional
            law applicable hereto) shall be satisfactory to counsel to Agent and
            counsel to each of the Banks.

      6. REPRESENTATIONS AND WARRANTIES

      Company represents and warrants and such representations and warranties
shall be deemed to be continuing representations and warranties during the
entire life of this Agreement:

      (a) Corporate Authority. Each of the Company and the Subsidiaries is a
corporation, limited liability company or partnership duly organized and validly
existing in good standing under the laws of the applicable jurisdiction of
organization, charter or incorporation; each of the Company and the Subsidiaries
is duly qualified and authorized to do business as a corporation, limited
liability company or partnership (or comparable foreign entity) in each
jurisdiction where the character of its assets or the nature of its activities
makes such qualification necessary, except where such failure to qualify and be
authorized to do business will not have a Material Adverse Effect.

      (b) Due Authorization -- Company. Execution, delivery and performance of
this Agreement, the other Loan Documents, and any other documents and
instruments required under or in connection with this Agreement, and the
issuance of the Notes by and extensions of credit to the Company are within its
corporate powers, have been duly authorized, are not in contravention of law or
the terms of the Company's articles of incorporation or bylaws, and, except as
have been previously obtained or as referred to in Section 6.13, below, do not
require the consent or approval, material to the transactions contemplated by
this Agreement, or the Loan Documents, of any governmental body, agency or
authority.

      (c) Title to Property. The Company and each of the Subsidiaries has good
and valid title to the property owned by it, which property (individually or in
the aggregate) is material to the business or operations of the Company and its
Subsidiaries, taken as a whole, excluding imperfections in title not material to
the ownership, use and/or enjoyment of any such property.

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<PAGE>

      (d) Liens. There are no security interests in, Liens, mortgages or other
encumbrances on and no financing statements on file with respect to any property
of Company or any of the Subsidiaries, except for those Liens permitted under
Section 8.6 hereof.

      (e) Subsidiaries. As of the date of this Agreement, there are no directly
or indirectly owned Subsidiaries of the Company, except for those Subsidiaries
identified in Schedule 6.5, attached hereto.

      (f) Taxes. The Company and its Subsidiaries each has filed on or before
their respective due dates, all federal, state and foreign tax returns which are
required to be filed or has obtained extensions for filing such tax returns and
is not delinquent in filing such returns in accordance with such extensions and
has paid all taxes which have become due pursuant to those returns or pursuant
to any assessments received by any such party, as the case may be, to the extent
such taxes have become due, except to the extent (i) such tax payments are being
actively contested in good faith by appropriate proceedings and with respect to
which adequate provision has been made on the books of the Company or its
Subsidiaries, as applicable, as may be required by GAAP, or (ii) disclosed on
Schedule 6.6, attached hereto.

      (g) No Defaults. (1) There exists no default under the provisions of any
instrument evidencing any permitted Debt of the Company or its Subsidiaries or
connected with any of the permitted Liens, or of any agreement relating thereto,
except where such default could not reasonably be expected to have a Material
Adverse Effect and would not violate this Agreement or any of the other Loan
Documents according to the terms thereof.

      (1)   The Company is in compliance with the Borrowing Base Limitation.

      (h) Enforceability of Agreement and Loan Documents -- Company. This
Agreement, the Notes, each of the other Loan Documents to which the Company is a
party, and all other certificates, agreements and documents executed and
delivered by Company under or in connection herewith or therewith have each been
duly executed and delivered by duly authorized officers of the Company and
constitute the valid and binding obligations of the Company, enforceable in
accordance with their respective terms, except as enforcement thereof may be
limited by applicable bankruptcy, reorganization, insolvency, moratorium or
similar laws affecting the enforcement of creditor's rights generally and by
general principles of equity (whether enforcement is sought in a proceeding in
equity or at law).

      (i) Enforceability of Loan Documents - - Significant Domestic
Subsidiaries. The Domestic Guaranty, the Security Agreement and all other
certificates, agreements and documents executed and delivered by each
Significant Domestic Subsidiary under or in connection with this Agreement will,
upon execution and delivery thereof, have each been duly executed and delivered
by duly authorized officers of each such Significant Domestic Subsidiary and
constitute the valid and binding obligations of each such Significant Domestic
Subsidiary, enforceable in accordance with their respective terms, except as
enforcement thereof may be limited by applicable bankruptcy, reorganization,
insolvency, moratorium or similar laws affecting the enforcement of creditor's
rights generally and by general principles of equity (whether enforcement is
sought in a proceeding in equity or at law).

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<PAGE>

      (j) Non-contravention -- Company. The execution, delivery and performance
of this Agreement and the other Loan Documents and any other documents and
instruments required under or in connection with this Agreement by the Company
are not in contravention of the terms of any indenture, material agreement or
material undertaking to which the Company is a party or by which it or its
properties are bound or affected, except to the extent such terms have been
waived or are not material to the transactions contemplated by this Agreement
and the other Loan Documents or to the financial performance of the Company and
its Subsidiaries, taken as a whole.

      (k) Non-contravention -- Significant Domestic Subsidiaries. The execution,
delivery and performance of the Domestic Guaranty, the Security Agreement and
any other documents and instruments required under or in connection with this
Agreement by each Significant Domestic Subsidiary (upon execution and delivery
thereof) will not be in contravention of the terms of any indenture, material
agreement or material undertaking to which each such Significant Domestic
Subsidiary is a party or by which it or its properties are bound or affected,
except to the extent such terms have been waived or are not material to the
transactions contemplated by this Agreement and the other Loan Documents or to
the financial performance of the Company and its Subsidiaries, taken as a whole.

      (l) No Litigation. Except as set forth in Schedule 6.12 annexed hereto, as
of the Effective Date, no litigation or other proceeding before any court or
administrative agency is pending, or to the knowledge of the officers of Company
is threatened against Company or any Subsidiary, the outcome of which could
reasonably be expected to have a Material Adverse Effect.

      (m) Consents, Approvals and Filings, Etc. Except as have been previously
obtained no authorization, consent, approval, license, qualification or formal
exemption from, nor any filing, declaration or registration with, any court,
governmental agency or regulatory authority or any securities exchange or any
other person or party (whether or not governmental) is required in connection
with the execution, delivery and performance by the Company or any of the
Subsidiaries, of this Agreement, any of the other Loan Documents to which such
Person is a party or any other documents or instruments to be executed and/or
delivered by the Company or any Subsidiaries in connection therewith or
herewith. All such authorizations, consents, approvals, licenses,
qualifications, exemptions, filings, declarations and registrations which have
previously been obtained or made, as the case may be, are in full force and
effect and are not the subject of any attack, or to the knowledge of the
Company, threatened attack (in any material respect) by appeal or direct
proceeding or otherwise.

      (n) Agreements Affecting Financial Condition. Neither the Company nor any
of the Subsidiaries is party to any agreement or instrument or subject to any
charter or other corporate restriction which materially adversely affects the
financial condition or operations of the Company and its Subsidiaries, taken as
a whole.

      (o) No Investment Company; No Margin Stock. None of the Company nor any of
the Subsidiaries is engaged principally, or as one of its important activities,
directly or indirectly, in the business of extending credit for the purpose of
purchasing or carrying margin stock. None of the Letters of Credit and none of
the proceeds of any of the Advances will be used by the

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<PAGE>

Company or any of the Subsidiaries to purchase or carry margin stock or will be
made available by the Company or any of the Subsidiaries in any manner to any
other Person to enable or assist such Person in purchasing or carrying margin
stock. Terms for which meanings are provided in Regulation U of the Board of
Governors of the Federal Reserve System or any regulations substituted therefor,
as from time to time in effect, are used in this paragraph with such meanings.
None of the Company nor any of the Subsidiaries is an "investment company"
within the meaning of the Investment Company Act of 1940, as amended.

      (p) ERISA. Neither a Reportable Event which is material to the Company and
its Subsidiaries taken as a whole nor an accumulated funding deficiency (as
defined in Section 412 of the Internal Revenue Code or Section 302 of ERISA) has
occurred during the five-year period prior to the date on which this
representation is made or deemed made with respect to any Pension Plan. Each
Pension Plan has complied and continues to comply in all material respects with
the applicable provisions of ERISA and the Internal Revenue Code and any
applicable regulations thereof (and, if applicable, any comparable foreign law
provisions), except to the extent that any noncompliance, individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.
No termination of a Single Employer Plan has occurred, and no lien in favor of
the PBGC or a Pension Plan has arisen, during such five-year period. The present
value of all accrued benefits under each Single Employer Plan maintained by the
Company or any ERISA Affiliate did not, as of the last annual valuation date
prior to the date on which this representation is made or deemed made, exceed
the value of the assets of such Pension Plan allocable to such accrued benefits.
Neither the Company nor any ERISA Affiliate has had a complete or partial
withdrawal from any Multiemployer Plan within the five year period prior to the
date of this Agreement, nor does the Company or any ERISA Affiliate presently
intend to completely or partially withdraw from any Multiemployer Plan, and
neither the Company nor any ERISA Affiliate would become subject to fines,
penalties or any other liability under ERISA if the Company or any ERISA
Affiliate were to withdraw completely from all Multiemployer Plans as of the
valuation date most closely preceding the date of this Agreement. To the best of
Company's knowledge, no such Multiemployer Plan is in bankruptcy or
reorganization or insolvent. There is no pending or, to the best of Company's
knowledge, threatened litigation or investigation questioning the form or
operation of any Pension Plan, nor is there any basis for any such litigation or
investigation which if adversely determined could reasonably be expected to have
a Material Adverse Effect, as of the valuation date most closely preceding the
date of this Agreement.

      (q) Compliance with Laws Except as disclosed on Schedule 6.17, (a) the
Company and each of its Subsidiaries has complied with all applicable federal,
state and local laws, ordinances, codes, rules and regulations (including
consent decrees and administrative orders) including but not limited to
Hazardous Material Laws, and is in compliance with any such requirement of law,
except to the extent that failure to comply therewith could not reasonably be
expected to have a Material Adverse Effect; and (b) the extension of credit made
pursuant to this Agreement will not violate the Trading with the Enemy Act, as
amended, or any of the foreign assets control regulations of the United States
Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling
legislation or executive order relating thereto, or The United and Strengthening
America by providing appropriate Tools Required to Intercept and Obstruct
Terrorism ("USA Patriot Act" and together with the other anti-terrorism measures
referenced to herein, each as amended from time to time, the "Anti-Terrorism
Laws") Act of 2001, Public Law

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<PAGE>

10756, October 26, 2001 or Executive Order 13224 of September 23, 2001 issued by
the President of the United States (66 Fed. Reg. 49049 (2001)).

      (r) Accuracy of Information. Each of the Company's audited or unaudited
financial statements previously furnished to Agent and the Banks by the Company
prior to the date of this Agreement, is complete and correct in all material
respects and fairly presents the financial condition of the Company and its
Subsidiaries, taken as a whole, and the results of their operations for the
periods covered thereby; any projections of operations for future years
previously furnished by Company to Agent and the Banks have been prepared as the
Company's good faith estimate of such future operations, taking into account all
relevant facts and matters known to Company; since September 30, 2005 there has
been no material adverse change in the financial condition of the Company or its
Subsidiaries, taken as a whole, except changes in the ordinary course of
business; neither the Company, nor any of its Subsidiaries has any contingent
obligations (including any liability for taxes) not disclosed by or reserved
against in the September 30, 2005 balance sheet which could reasonably be
expected to have a Material Adverse Effect.

      7. AFFIRMATIVE COVENANTS

      Company covenants and agrees that it will, and, as applicable, it will
cause its Subsidiaries (but excluding, for purposes of Sections 7.3 through 7.8,
7.17 and 7.18 through 7.20 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:

      (a) Preservation of Existence, Etc. Subject to the terms of this
Agreement, and except as otherwise contemplated by the New Restructuring: (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 engage only in businesses as substantially now
conducted by the Company and its Subsidiaries and businesses reasonably related
thereto; (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.

      (b) Keeping of Books; Write Off Policy. 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 and write off Dealer Loans
and Purchased Contracts in a manner consistent with the Company's write off
policy described in its periodic reports filed with the Securities and Exchange
Commission.

      (c) Reporting Requirements. Furnish Agent with:

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      (1)   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 or
            treasurer 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 has taken or has caused to be taken
            or proposes to take or cause to be taken with respect thereto;

      (2)   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 and (iii) a "static pool analysis" substantially
            in the form delivered under the Prior Credit Agreement and in any
            event satisfactory in form and substance to the Majority Banks,
            which analyzes the performance of Installment Contracts of the
            Company and its Subsidiaries securing Dealer Loan Pools or of
            Purchased Contracts of the Company and its Subsidiaries derived from
            their United States operations on a quarterly basis for the fourth
            quarter of such fiscal year, in each case certified by an authorized
            officer of the Company as to consistency with prior such analyses,
            accuracy and fairness of presentation;

      (3)   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 Consolidating balance
            sheet, income statement and statement of cash flows 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
            delivered under the Prior Credit Agreement and in any event
            satisfactory in form and substance to the Majority Banks, which
            analyzes the performance of Installment Contracts of the Company and
            its Subsidiaries securing Dealer Loan Pools or of Purchased
            Contracts of the Company and its Subsidiaries derived from their
            United States operations on a quarterly basis for the applicable
            quarter, in each case certified by an authorized officer of the
            Company as to consistency with prior such analyses, accuracy and
            fairness of presentation;

      (4)   as soon as available, and in any event within twenty (20) Business
            Days after and as of the end of each quarter, including the last
            quarter, of each fiscal year, a Borrowing Base Certificate as of the
            end of such quarter, certified by an authorized officer of the
            Company as to accuracy and fairness of presentation;

      (5)   as soon as possible, and in any event within three (3) Business Days
            after becoming aware (i) of any change in the financial condition of
            the Company, or any of its Subsidiaries which has a Material Adverse
            Effect, a certificate of the chief financial officer or treasurer of
            Company (or in his absence, a responsible

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<PAGE>

            senior officer) setting forth the details of such change, or (ii) of
            the taking by the Internal Revenue Service or any foreign taxing
            jurisdiction of a tax position (verbal or written) which has or
            could reasonably be expected to have a Material Adverse Effect (or
            have a material adverse effect on any such tax position taken by the
            Company or any of its Subsidiaries) setting forth the details of
            such position and the financial impact thereof;

      (6)   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 agency or authority in the United States, or comparable
            agencies or authorities in foreign jurisdictions, or any stock
            exchanges in such jurisdictions;

      (7)   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;

      (8)   from time to time at the request of Agent or any Bank, a copy of the
            standard form of Company's Dealer Agreement then in effect for the
            Company's operations in the United States of America, and each other
            material jurisdiction, if any, identifying any material changes from
            the form supplied to the Banks hereunder for the preceding year;

      (9)   not more than once during each fiscal year, promptly following the
            written request of Agent, updated Consolidated financial projections
            which shall reflect, among other things, any Future Debt or
            Permitted Securitizations contemplated to be incurred or made for
            the remaining portion of the then current fiscal year, and a
            Consolidated balance sheet and a Consolidated statement of projected
            income for each of the two succeeding fiscal years and including a
            statement in reasonable detail specifying all material assumptions
            underlying such projections;

      (10)  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 securing
            Dealer Loan Pools or of Purchased Contracts of the Company and its
            Subsidiaries transferred, encumbered, or otherwise disposed

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            of 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

      (11)  on an annual basis, a report as to the Company's Debt Rating, if
            then maintained by the Company, provided that the Company shall also
            promptly report any changes in such Debt Rating;

      (12)  promptly upon the formulation thereof, notice of any material
            revisions to the Company's write off policy as in effect on the
            Effective Date;

      (13)  promptly, and in form to be satisfactory to Agent and the requesting
            Bank or Banks, Borrowing Base Certificates and such other
            information as Agent or any of the Banks (acting through Agent) may
            reasonably request from time to time.

      (d) Maintain Asset Coverage Ratio. On a Consolidated basis, maintain at
all times, Consolidated Net Assets at a level greater than or equal to
Consolidated Funded Debt.

      (e) Maintain Funded Debt Ratio Level. On a Consolidated basis, maintain as
of the end of each fiscal quarter a ratio of Consolidated Funded Debt (including
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) to
the Company's Consolidated Tangible Net Worth equal to or less than 3.0 to 1.0.

      (f) Minimum Tangible Net Worth. On a Consolidated basis, maintain
Consolidated Tangible Net Worth of not less than Two Hundred Seventy Nine
Million Dollars ($279,000,000), PLUS the sum of (i) eighty percent (80%) of
Consolidated Net Income for each fiscal quarter of the Company (A) beginning on
or after October 1, 2005, (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, and MINUS
the lesser of (x) One Hundred Ninety-Nine Million Dollars ($199,000,000) and (y)
the aggregate amount of Permitted Repurchases and Permitted Dividends paid to
holders of the Company's capital stock on or after October 1, 2005 to the
applicable date of determination on a cumulative basis.

      (g) 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 2.75 to 1.0, unless the remaining maturity of the Revolving Credit
shall be less than 366 days, in which case such ratio shall be maintained at not
less than 3.50 to 1.00.

      (h) 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

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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 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.

      (i) 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 reasonably be expected to have a Material Adverse Effect.

      (j) 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 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 7.20 hereof.

      (k) 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 7.20 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.

      (l) 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 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.

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<PAGE>

      (m) 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
Guarantors, as the case may be, in connection therewith or herewith.

      (n) Compliance with Contractual Obligations and Laws.

      (1)   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,
            Anti-Terrorism 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.

      (2)   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
            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.

      (o) 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:

      (1)   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);

      (2)   the appointment of a trustee by a United States District Court to
            administer any Pension Plan pursuant to ERISA;

      (3)   the commencement by the PBGC, or any successor thereto, of any
            proceeding to terminate any Pension Plan;

      (4)   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;

      (5)   the withdrawal of the Company or any ERISA Affiliate from any
            Multiemployer Plan;

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<PAGE>

      (6)   the occurrence of an accumulated funding deficiency (as defined in
            Section 6.16 hereof) or a Reportable Event; or

      (7)   the occurrence of a Prohibited Transaction which could reasonably be
            expected to have a Material Adverse Effect.

      (p) Environmental Matters.

      (1)   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

      (2)   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 Default), court
            costs and litigation expenses; and, if so requested by Agent or any
            Bank, Company shall execute separate indemnities covering the
            foregoing matters. The obligations of Company under this Section
            7.16 shall be in addition to any and all other obligations and
            liabilities the Company may have to Agent or any of the Banks at
            common law or pursuant to any other agreement.

      (q) Installment Contract Standards. (1) Cause each Installment Contract
securing Dealer Loans or Dealer Loan Pools included in Dealer Loans Receivable
or encumbered by the Collateral Documents to satisfy the following requirements:

A.    Such Installment Contract (and the interest of Company or its Subsidiaries
      thereunder) has not been sold, transferred or otherwise assigned or
      encumbered by the Company or

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      its Subsidiaries to any Person, other than to the Lenders pursuant to the
      Collateral Documents;

B.    The Installment Contract obligor thereunder is not an Affiliate of the
      Company; and

C.    Such Installment Contract is owned by Company or a Subsidiary, or Company
      or a Subsidiary has a valid first priority perfected security interest
      therein (provided that the failure of up to $2,500,000 in aggregate amount
      of such financial assets, valued according to GAAP, to satisfy the
      requirements of this clause (iii) shall not constitute a violation of this
      Section 7.17); and

      (2)   Exercise its best efforts to enforce the provisions of its Dealer
            Agreements relating to the eligibility criteria for Purchased
            Contracts or Installment Contracts relating to Dealer Loans, as
            applicable, including without limitation:

A.    it has not been rescinded and it is a valid, binding and enforceable
      obligation of the applicable Installment Contract obligor;

B.    it is enforceable against the applicable Installment Contract obligor for
      the amount shown as owing in the contract and in any related records;

C.    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 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;

D.    it is not subject to any material offset, credit, allowance or adjustment;

E.    the Company or a Subsidiary has a first and prior perfected security
      interest or ownership interest (received directly or by assignment) in the
      financed vehicle securing the performance of the applicable Installment
      Contract obligor;

F.    the financed vehicle has been delivered to the applicable Installment
      Contract obligor and, on the date of delivery, satisfied all warranties,
      expressed or implied, made to such Installment Contract obligor; and

G.    the applicable Installment Contract obligor owns 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.

      (r) 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 the
Indebtedness hereunder and such indebtedness shall

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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.

      (s) Subsidiaries; Guaranties. With respect to each Person which becomes a
Significant Domestic Subsidiary of the Company subsequent to the Effective Date
hereof, within thirty (30) 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 Domestic Subsidiary, cause such
Subsidiary to execute and deliver to Agent, for and on behalf of each of the
Banks, a Joinder Agreement whereby such Significant Domestic Subsidiary becomes
obligated as a Guarantor under the Domestic Guaranty, together with such
supporting documentation, including without limitation corporate authority
items, certificates and opinions of counsel, as reasonably required by Agent,
acting in its capacity as Collateral Agent, as aforesaid.

      (t) Subsidiaries; Security Documents. (1) With respect to each existing
Subsidiary which becomes a Significant Domestic Subsidiary of the Company
subsequent to the Effective Date hereof, within thirty (30) days of the date of
the 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
Domestic Subsidiary, and in the case of any newly acquired or created
Significant Domestic Subsidiary, promptly following acquisition or creation, (i)
grant (or cause to be granted) a security interest and lien to the Agent, acting
in its capacity as Collateral Agent under the Intercreditor Agreement, in the
Collateral owned by such Significant Domestic Subsidiary substantially on the
terms provided in the Security Agreement and (ii) pledge (or cause to be
pledged) to the Agent, acting in its capacity as Collateral Agent under the
Intercreditor Agreement, all of the outstanding capital Stock of such
Significant Domestic Subsidiary which is owned by the Company or its
Subsidiaries substantially on the terms provided in the Security Agreement, in
each case, as security for the Indebtedness; and

      (1)   within thirty days following Agent's request (given at the direction
            or with the concurrence of the Majority Banks) in the event of a
            material change in any Dealer Agreement (or any related document)
            which, in the reasonable discretion of Agent and the Majority Banks
            (supported by an opinion of counsel) adversely affects any
            Collateral Document or which necessitates a change in any Collateral
            Document in order to provide Agent and the Banks with the full
            benefit thereof (and to extend such Collateral Documents to any
            additional property rights or interests resulting from any such
            change in a Dealer Agreement), enter into such

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<PAGE>

            amendments to the Collateral Documents so affected, on terms and
            conditions as reasonably required by the Agent, acting in its
            capacity as Collateral Agent, as aforesaid, or as Agent hereunder;

together in each case with such supporting documentation, including without
limitation corporate authority items, certificates and opinions of counsel, as
reasonably required by the Agent, acting in its capacity as Collateral Agent as
aforesaid.

      8. NEGATIVE COVENANTS

      Company covenants and agrees 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 and 8.15
hereof, any Special Purpose Subsidiary), without the prior written consent of
the Majority Banks, to:

      (a) Redemptions. Purchase, acquire or redeem any of its capital stock,
except for a Permitted Repurchase.

      (b) 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 of used motor
vehicles, motor vehicle service protection programs, credit life, accident and
health insurance programs, guaranteed asset protection program 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 to
Dealers under Dealer Agreements (including, without limitation, with respect to
Installment Contracts, 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.

      (c) Mergers or Dispositions. Enter into any merger or consolidation,
except for any Permitted Merger or Permitted Transfer under clause (iv) 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) and other transfers made pursuant to
the New Restructuring, provided that, both before and after giving effect
thereto, no Default or Event of Default has occurred and is continuing.

      (d) Guaranties. Become or remain obligated under or in respect of a
Guarantee Obligation, except by endorsement of cash items for deposit in the
ordinary course of business and except for the Guaranties and the Permitted
Guaranties.

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<PAGE>

      (e) 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:

      (1)   Indebtedness to Banks hereunder;

      (2)   current unsecured trade, utility or non-extraordinary accounts
            payable arising in the ordinary course of Company's or any
            Subsidiary's businesses;

      (3)   the Future Debt;

      (4)   Subordinated Debt, provided, however, that on the date any such Debt
            is incurred, clauses (a) and (c) of the Funding Conditions shall
            have been satisfied;

      (5)   Debt secured by Liens permitted under Section 8.6(b), not to exceed
            an aggregate amount of Ten Million Dollars ($10,000,000) at any time
            outstanding;

      (6)   such other Debt set forth in Schedule 8.5A and Schedule 8.5B
            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,
            in the case of the Debt set forth in Schedule 8.5A, any required
            amortization according to the terms thereof) on substantially the
            same terms and otherwise in compliance with this Agreement;

      (7)   (i) Intercompany Loans by the Company to any Domestic Subsidiary or
            by any Domestic Subsidiary to the Company or another Domestic
            Subsidiary (excluding any Special Purpose Subsidiary and any other
            Subsidiary excluded from the definition of Significant Subsidiary by
            the proviso at the end of such definition) made while no Default or
            Event of Default has occurred and is continuing (both before and
            after giving effect thereto), provided, however, that any such
            Intercompany Loan shall be evidenced by and funded under an
            Intercompany Note which shall be pledged (pursuant to the Security
            Agreement) to the Agent, in its capacity as Collateral Agent under
            the Intercreditor Agreement, as security for the Indebtedness, (ii)
            Intercompany Loans by the Company or any Domestic Subsidiary to a
            Foreign Subsidiary existing immediately prior to the Effective Date
            and disclosed on Schedule 8.8 hereto and evidenced by an
            Intercompany Note pledged (pursuant to the Security Agreement) to
            the Agent, in its capacity as Collateral Agent under the
            Intercreditor Agreement, as security for the Indebtedness, and (iii)
            Intercompany Loans (on a subordinated basis in relation to the
            Indebtedness on substantially the basis set forth in the form of
            Intercompany Note, attached hereto) by any Foreign Subsidiary to the
            Company, another Foreign Subsidiary or a Domestic Subsidiary
            excluding any Special Purpose Subsidiary and any other Subsidiary
            excluded from the definition of Significant Subsidiary by the
            proviso at the end of such definition;

      (8)   Debt incurred by a Special Purpose Subsidiary under, and secured by
            assets transferred pursuant to, a Permitted Securitization, whether
            or not attributable to the Company under GAAP;

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<PAGE>

      (9)   Debt arising under Hedging Agreements entered into by the Company
            (copies of which shall be provided to the Agent promptly following
            the execution thereof) and Permitted Guaranties; and

      (10)  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), which
            Debt shall be unsecured except to the extent of any Lien permitted
            under Section 8.6(d) hereof.

      (f) 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:

      (1)   in favor of Agent, as security for the Indebtedness and any Liens
            granted to the holders, to the extent applicable (and subject to the
            terms of this Agreement), Future Debt pursuant to Collateral
            Documents, on an equal and ratable basis with comparable Liens
            granted to Agent, for and on behalf of the Banks;

      (2)   purchase money mortgages or security interests in fixed assets to
            secure purchase money Debt for fixed assets (including refinancing
            of such mortgages or security interests and 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 Ten Million Dollars ($10,000,000) at
            any one time outstanding, 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 any renewal or refinancing (subject to
            the foregoing) of such Debt;

      (3)   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

      (4)   Liens on the property of Company or any of its Subsidiaries other
            than Dealer Loans, Dealer Loan Pools, Installment Contracts, leases
            or other financial assets or other 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, Two Million
            Five Hundred Thousand Dollars ($2,500,000).

      (g) Acquisitions. Other than (i) any Permitted Acquisition, (ii) any
transfer to the Company or any Subsidiary of any assets or business or ownership
interests by Company or any Subsidiary otherwise permitted by this Agreement or
(iii) any acquisition of any rights or property pursuant to a Permitted
Securitization or pursuant to the New Restructuring, 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

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<PAGE>

any other manner effectuate or attempt to effectuate an expansion of present
business by acquisition.

      (h) 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:

      (1)   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 long as the aggregate of
            all such loans or advances by the Company and its Subsidiaries does
            not exceed Three Million Dollars ($3,000,000) at any time
            outstanding, plus reasonable, reimbursable business and travel
            expenses;

      (2)   Permitted Investments at any time outstanding or in effect;

      (3)   Investments existing as of the date of this Agreement in Company's
            Domestic Subsidiaries;

      (4)   (i) Intercompany Loans, Advances and Investments made pursuant to
            the New Restructuring or the restructuring of the ownership of the
            Company's Subsidiaries (but without the transfer of any cash or
            other property other than to the extent necessary, upon formation,
            to meet minimum capitalization requirements, if any, under
            applicable law), (ii) Intercompany Loans, Advances and Investments
            by the Company or any Domestic Subsidiary (excluding any Special
            Purpose Subsidiary and any other Subsidiary excluded from the
            definition of Significant Subsidiary by the proviso at the end of
            such definition) to or in any other such Domestic Subsidiary, or any
            Person that concurrently with such Investment becomes such a
            Domestic Subsidiary, made while no Default or Event of Default has
            occurred and is continuing, (iii) Intercompany Loans permitted under
            Section 8.5(g) and (iv) Intercompany Loans, Advances and Investments
            existing immediately prior to the Effective Date to or in any
            Foreign Subsidiaries;

      (5)   Floor Plan Receivables and Notes Receivable in the ordinary course
            of business;

      (6)   Dealer Loans, Dealer Loan Pools and Purchased Contracts;

      (7)   receivables arising from used vehicle leases in existence on the
            date hereof and the sale of goods and services by the Company or its
            Subsidiaries, in each case in the ordinary course of business of
            Company and its Subsidiaries;

      (8)   Permitted Acquisition(s) and Permitted Merger(s), to the extent any
            such acquisition or merger shall be deemed to constitute an
            Investment;

      (9)   Those Investments set forth on the attached Schedule 8.8;

      (10)  Investments in any Subsidiary (including, without limitation, any
            Special Purpose Subsidiary) from and after the date hereof,
            consisting of (w) dispositions 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

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<PAGE>

            each case to the extent constituting Investments hereunder; (x)
            advances by Company (as servicer or administrative agent) which are
            permitted under the definition of Permitted Guaranties; (y) the
            repurchase or replacement from and after the Effective Date hereof
            of an aggregate amount (based on the net book value thereof) not to
            exceed $5,000,000 in Dealer Loan Pools or Purchased Contracts or
            related pools thereof subsequently determined not to satisfy the
            eligibility standards contained in the applicable Securitization
            Documents relating to a Permitted Securitization or otherwise
            required to be repurchased by the applicable Securitization
            Documents entered into in compliance with the terms of this
            Agreement, 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 Dealer Loan Pools or
            Purchased Contracts which 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;

      (11)  Investments in foreign currencies outstanding for no more than
            fourteen (14) days that are necessary to fulfill foreign exchange
            contracts entered into by the Company or any of its Subsidiaries for
            hedging purposes and other hedging transactions under Hedging
            Agreements; and

      (12)  Investments, other than those set forth in subparagraphs (a) through
            (k) above, in an aggregate amount at any time outstanding not to
            exceed Five Million Dollars ($5,000,000).

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.

      (i) Accounts Receivable and Other Financial Assets. Except (i) to Agent,
in its capacity as Agent for and on behalf of the Banks or in its capacity as
Collateral Agent under the Intercreditor Agreement or (ii) pursuant to a
Permitted Transfer or (iii) in connection with a Permitted Securitization or
(iv) pursuant to the New Restructuring, sell or transfer, any account, note,
trade acceptance receivable, lease or other financial asset, unless such sale,
transfer, assignment or reallocation has been made in the ordinary course of
business or, if not in the ordinary course of business, the sum of (x) the net
book value of the accounts, notes or trade acceptance receivables, leases or
other financial assets proposed to be transferred, plus (y) the net book value
of the accounts, notes or trade acceptance receivables, leases or other
financial assets transferred by the Company and its Subsidiaries, excluding the
net book value of accounts, notes or trade acceptance receivables, leases and
other financial assets transferred pursuant to clauses (i), (ii), and (iii)
above, since June 30th of the preceding calendar year, does not exceed Fifteen

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Million Dollars ($15,000,000); provided, however, that in the case of all sales,
transfers, assignments or reallocations permitted under this Section 8.9, no
Default or Event of Default shall have occurred and be continuing (both before
and after giving effect thereto) and both before and after giving effect to such
disposition (and taking into account any reduction in the Indebtedness with the
proceeds of such disposition as required hereunder), the Company shall be in
compliance with the Borrowing Base Limitation, as confirmed by a Borrowing Base
Certificate (and any supporting information reasonably required by the Agent)
submitted by the Company not less than five (5) Business Days prior to the date
of such disposition, and dated as of the proposed date of such disposition, and
by an updated Borrowing Base Certificate (to be provided within 10 Business Days
of the date of such disposition).

      (j) 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.

      (k) No Further Negative Pledges. Enter into or become subject to any
agreement (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, other than (A) loan documents evidencing or otherwise related to the
Future Debt or unsecured overdraft lines of credit or similar credit
arrangements maintained by the Subsidiaries in the ordinary course of business
(but limited to the applicable Subsidiary or the property and assets of the
applicable Subsidiary), 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 (B) other than
pursuant to any of the Securitization Documents, but as to any prohibition on
the creation or assumption of any lien or encumbrance, only to the extent of the
financial assets and the other rights and property transferred or encumbered or
otherwise disposed of in connection with the Permitted Securitization covered by
such Securitization Documents.

      (l) Prepayment of Debts. Except for Permitted Prepayments and for
prepayments of Intercompany Loans made pursuant to the New Restructuring or in
accordance with the form of Intercompany Note, attached hereto, prepay,
purchase, redeem or defease any Debt for money borrowed, excluding, subject to
the terms hereof, the Indebtedness, and excluding (i) paydowns from time to time
of permitted working capital facilities or other revolving debt, (ii) mandatory
payments, prepayments or redemptions of Future Debt and (iii) with respect only
to Permitted Securitizations, any payment pursuant to a Cleanup Call.

      (m) Amendment of 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 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 Future Debt to include (or enter into any Future Debt
Documents which include) any covenants

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or other provisions 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; provided, however, that, solely
for purposes of this Section 8.13, any Bank which fails, within fifteen (15)
Business Days of receipt of a written notice from Company of its intent to make
such amendment, modification or alteration (or waiver) in respect of the Future
Debt, (accompanied by a summary, in reasonable detail, of the proposed terms and
conditions thereof, captioned "notice of intent to amend Future Debt" and
stating that approval is deemed to be given if an objection is not made within
fifteen (15) Business Days of receipt of such notice), to object in writing to
such action shall be deemed to have given its approval of such amendment,
modification, alteration or waiver.

      (n) 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 (once approved by the requisite Banks) 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 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.

      (o) Limitation on Dividends. 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), 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,
unless, at the time of such dividend or distribution (and giving effect thereto)
no Default or Event of Default has occurred and is continuing.

      (p) Securitization Transaction; Amendments to Securitization Documents.
Engage in a Securitization Transaction, other than a Permitted Securitization
and, except in connection with a Permitted Securitization, assign and transfer
any financial assets to a Securitized Pool, 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 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.

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      9. DEFAULTS

      (a) Events of Default. Any of the following events is an "Event of
Default":

      (1)   non-payment of the principal or interest, when due, under any of the
            Notes issued hereunder, or of any Letter of Credit Obligation in
            accordance with the terms thereof;

      (2)   Default in the payment of any money by Company under this Agreement
            (other than as set forth in subsection (a), above), within three (3)
            days of the date the same is due and payable;

      (3)   default in the observance or performance of any of the other
            conditions, covenants or agreements set forth in this Agreement or
            any of the other Loan Documents by any party thereto (provided that,
            with respect to the covenants set forth in Sections 7.9, 7.11, 7.14,
            7.15 and 7.16(a) hereof, such event has continued for thirty (30)
            consecutive days) or the occurrence of any other default or event of
            default, as the case may be, hereunder or thereunder;

      (4)   any representation or warranty made or deemed made by Company herein
            or in any instrument submitted pursuant hereto or by any other party
            to the Loan Documents proves untrue in any material adverse respect
            when made or deemed made;

      (5)   any provision of the Domestic Guaranty or any of the Collateral
            Documents shall at any time for any reason (other than in accordance
            with its terms or the terms of this Agreement) cease to be valid and
            binding and enforceable against the Company, or any Significant
            Subsidiary which is a party thereto, as applicable, or the validity,
            binding effect or enforceability thereof shall be contested by any
            Person, or the Company, or any Significant Subsidiary which is a
            party thereto shall deny that it has any or further liability or
            obligation under the Domestic Guaranty or any of the Collateral
            Documents, as applicable, or the Domestic Guaranty or any of the
            Collateral Documents shall be terminated, invalidated, revoked or
            set aside or in any way cease to give or provide to the Banks and
            the Agent the benefits purported to be created thereby;

      (6)   default in the payment of any other obligation of Company or any of
            its Subsidiaries for borrowed money in an aggregate amount in excess
            of Five Million Dollars ($5,000,000); or default in the observance
            or performance of any conditions, covenants or agreements related or
            given with respect to any other obligations for borrowed money in an
            aggregate amount in excess of Five Million Dollars ($5,000,000),
            sufficient to permit the holder thereof to accelerate the maturity
            of such obligation or, with respect to the Securitization Documents,
            (i) the occurrence (beyond any applicable period of grace or cure)
            of any "servicer event of default" thereunder or (ii) the occurrence
            of any other default (beyond any applicable period of grace or cure)
            by Company or any of its Subsidiaries, including any Special Purpose
            Subsidiary, under the Securitization Documents,

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            which can be reasonably expected to result in recourse liability
            against the Company or any of its Subsidiaries (other than a Special
            Purpose Subsidiary) in an aggregate amount exceeding $5,000,000;

      (7)   a final judgment or final judgments for the payment of money
            aggregating in excess of Five Million Dollars ($5,000,000), shall be
            outstanding against any one or more of the Company and its
            Subsidiaries and any one of such judgments shall have been
            outstanding for more than thirty (30) days from the date of its
            entry, except to the extent that any such judgment is being
            contested in good faith by appropriate proceedings which provide for
            a stay of any enforcement action against the Company or such
            Subsidiary during the pendency of such proceedings and for which
            adequate reserves have been established and where nonpayment of such
            judgment could not reasonably be expected to have a Material Adverse
            Effect on the Company and its Subsidiaries taken as a whole;

      (8)   any Person shall engage in any Prohibited Transaction involving any
            Pension Plan, (ii) any accumulated funding deficiency (as defined in
            Section 6.16 hereof), whether or not waived, shall exist with
            respect to any Pension Plan or any Lien in favor of the PBGC or a
            Pension Plan shall arise on the assets of the Company or any ERISA
            Affiliate, (iii) a Reportable Event shall occur with respect to, or
            proceedings shall commence to have a trustee appointed or a trustee
            shall be appointed to administer, or to terminate, any Single
            Employer Plan, (iv) any Single Employer Plan shall terminate for
            purposes of Title IV of ERISA or (v) the Company or any ERISA
            Affiliate shall, or in the reasonable opinion of the Majority Banks
            is likely to, incur any liability in connection with a withdrawal
            from, or the insolvency, bankruptcy or reorganization of, a
            Multiemployer Plan and in each case in clauses (i) through (v)
            above, (x) a period of sixty (60) days, or more, has elapsed from
            the occurrence of such event or condition and (y) such event or
            condition, together with all other such events or conditions, if
            any, could reasonably be expected to subject the Company or any of
            its Subsidiaries to any tax, penalty or other liabilities in the
            aggregate material in relation to the business, operations, property
            or financial or other condition of the Company and its Subsidiaries
            taken as a whole;

      (9)   (a) Any Person or group of Persons (within the meaning of Section
            13(d) of the Securities Exchange Act of 1934, as amended), other
            than Donald Foss, his wife and children or trust(s) established for
            his or their benefit, shall acquire beneficial ownership (within the
            meaning of Rule 13d-3 promulgated under such Act) of more than 50%
            of the outstanding securities (on a fully diluted basis and taking
            into account any securities or contract rights exercisable,
            exchangeable or convertible into equity securities) of the Company
            having voting rights in the election of directors under normal
            circumstances; or (b) a majority of the members of the Board of
            Directors of the Company shall cease to be Continuing Members. For
            purposes of the foregoing; "Continuing Member" means a member of the
            Board of Directors of the Company who either (i) was a member of the
            Company's Board of Directors on the Effective Date and has been such
            continuously thereafter or (ii) became a member of such Board of
            Directors after

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            the Effective Date and whose election or nomination for election was
            approved by a vote of the majority of the Continuing Members who are
            then members of the Company's Board of Directors; or (c) there shall
            occur a "Change in Control" (or equivalent event thereunder) under
            the documents relating to any Future Debt then outstanding; or

      (10)  a receiver, liquidator, custodian or trustee of the Company or any
            Subsidiary, or of all or any part of the property of the Company or
            any Subsidiary, shall be appointed by court order and such order
            shall remain in effect for more than sixty (60) days, or an order
            for relief shall be entered with respect to the Company or any
            Subsidiary, or the Company or any Subsidiary shall be adjudicated a
            bankrupt or insolvent; or any of the property of the Company or any
            Subsidiary shall be sequestered by court order and such order shall
            remain in effect for more than sixty (60) days; or a petition shall
            be filed against the Company or any Subsidiary under any bankruptcy,
            reorganization, arrangement, insolvency, readjustment of debt,
            dissolution or liquidation law of any jurisdiction, whether now or
            hereafter in effect, and shall not be dismissed within sixty (60)
            days after such filing; or the Company or any Subsidiary shall file
            a petition in voluntary bankruptcy or seeking relief under any
            provision of any bankruptcy, reorganization, arrangement,
            insolvency, readjustment of debt, dissolution or liquidation law of
            any jurisdiction, whether now or hereafter in effect, or shall
            consent to the filing of any petition against it under any such law;
            or the Company or any Subsidiary shall make an assignment for the
            benefit of its creditors, or shall admit in writing its inability,
            or shall fail, to pay its debts generally as they become due, or
            shall consent to the appointment of a receiver, liquidator or
            trustee of the Company or any Subsidiary or of all or any part of
            the property of the Company or any Subsidiary.

      (b) Exercise of Remedies. If an Event of Default has occurred and is
continuing hereunder: (a) the Agent shall, if directed to do so by the Majority
Banks, declare any commitment of the Banks to extend credit hereunder
immediately terminated; (b) the Agent shall, if directed to do so by the
Majority Banks, declare the entire unpaid Indebtedness, including the Notes,
immediately due and payable, without presentment, notice or demand, all of which
are hereby expressly waived by Company; (c) upon the occurrence of any Event of
Default specified in Section 9.1(j) above, and notwithstanding the lack of any
declaration by Agent under the preceding clause (a) or (b), the Banks'
commitments to extend credit hereunder shall immediately and automatically
terminate and the entire unpaid Indebtedness, including the Notes, shall become
automatically due and payable without presentment, notice or demand; (d) the
Agent shall, upon being directed to do so by the Majority Banks, demand
immediate delivery of cash collateral, and the Company and each Account Party
agree to deliver such cash collateral upon demand, in an amount equal to the
maximum amount that may be available to be drawn at any time prior to the stated
expiry of all outstanding Letters of Credit, and (e) the Agent shall, if
directed to do so by the Majority Banks or the Banks, as applicable (subject to
the terms hereof), exercise any remedy permitted by this Agreement, the other
Loan Documents, including without limitation any of the Collateral Documents.

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      (c) Rights Cumulative. No delay or failure of Agent and/or Banks in
exercising any right, power or privilege hereunder shall affect such right,
power or privilege, nor shall any single or partial exercise thereof preclude
any other or further exercise thereof, or the exercise of any other power, right
or privilege. The rights of Banks under this Agreement are cumulative and not
exclusive of any right or remedies which Banks would otherwise have.

      (d) Waiver by Company of Certain Laws. To the extent permitted by
applicable law, Company hereby agrees to waive, and does hereby absolutely and
irrevocably waive and relinquish the benefit and advantage of any valuation,
stay, appraisement, extension or redemption laws now existing or which may
hereafter exist, which, but for this provision, might be applicable to any sale
made under the judgment, order or decree of any court, on any claim for interest
on the Notes, AND FURTHER HEREBY IRREVOCABLY AGREE TO WAIVE THE RIGHT TO TRIAL
BY JURY WITH RESPECT TO ANY AND ALL ACTIONS OR PROCEEDINGS IN WHICH AGENT OR THE
BANKS (OR ANY OF THEM), ON THE ONE HAND, AND THE COMPANY, ON THE OTHER HAND, ARE
PARTIES, WHETHER OR NOT SUCH ACTIONS OR PROCEEDINGS ARISE OUT OF THIS AGREEMENT
OR THE OTHER LOAN DOCUMENTS, OR OTHERWISE. These waivers have been voluntarily
given, with full knowledge of the consequences thereof.

      (e) Waiver of Defaults. No Event of Default shall be waived by the Banks
except in a writing signed by an officer of the Agent in accordance with Section
13.11 hereof. No single or partial exercise of any right, power or privilege
hereunder, nor any delay in the exercise thereof, shall preclude any other or
further exercise of the Banks' rights by Agent. No waiver of any Event of
Default shall extend to any other or further Event of Default. No forbearance on
the part of the Agent in enforcing any of the Banks' rights shall constitute a
waiver of any of their rights. Company expressly agrees that this Section may
not be waived or modified by the Banks or Agent by course of performance,
estoppel or otherwise.

      (f) Cross-Default. In addition to the other Events of Default specified
herein, any failure to perform and discharge when due, after allowance for any
applicable cure period, any of the obligations, covenants and agreements
required to be performed under the provisions of any instruments securing any
other present and future borrowings of Company from the Banks (or from Agent) in
renewal or extension of, or related to, this Agreement or any of the other Loan
Documents, or any security agreements in relation thereto, shall be an Event of
Default under the provisions of this Agreement entitling Agent, at the direction
or with the concurrence of the Majority Banks (without notice or any cure period
except as expressly provided herein or therein), to exercise any and all rights
and remedies provided hereby. Any Event of Default shall also constitute a
default under all other instruments securing this or any other present or future
borrowings, or any agreements in relation thereto, entitling Agent and the Banks
to exercise any and all rights and remedies provided therein.

      10. PAYMENTS, RECOVERIES AND COLLECTIONS.

      (a) Payment Procedure.

      (1)   All payments by Company of principal of, or interest on the
            Revolving Credit Notes or the Swing Line Notes or of Letter of
            Credit Obligations or Fees shall be

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            made without setoff or counterclaim on the date specified for
            payment under this Agreement not later than 11:00 a.m. (Detroit
            time) in Dollars in immediately available funds to Agent, for the
            ratable account of the Banks, at Agent's office located at One
            Detroit Center, Detroit, Michigan 48226, in respect of Domestic
            Advances or Fees payable in Dollars. Upon receipt of each such
            payment, the Agent shall make prompt payment to each Bank, in like
            funds of all amounts received by it for the account of such Bank.

      (2)   Unless the Agent shall have been notified by the Company prior to
            the date on which any payment to be made by the Company is due that
            the Company does not intend to remit such payment, the Agent may, in
            its discretion, assume that the Company has remitted such payment
            when so due and the Agent may, in reliance upon such assumption,
            make available to each Bank on such payment date an amount equal to
            such Bank's share of such assumed payment. If the Company has not in
            fact remitted such payment to the Agent, each Bank shall forthwith
            on demand repay to the Agent the amount of such assumed payment made
            available to such Bank, together with the interest thereon, in
            respect of each day from and including the date such amount was made
            available by the Agent to such Bank to the date such amount is
            repaid to the Agent at a rate per annum equal to (i) for Prime-based
            Advances, the federal funds rate (daily average), as the same may
            vary from time to time, and (ii) with respect to Eurodollar-based
            Advances, Agent's aggregate marginal cost (including the cost of
            maintaining any required reserves or deposit insurance and of any
            fees, penalties, overdraft charges or other costs or expenses
            incurred by Agent) of carrying such amount.

      (3)   Whenever any payment to be made hereunder (other than payments in
            respect of any Eurodollar-based Advance or a Quoted Rate Advance)
            shall otherwise be due on a day which is not a Business Day, such
            payment shall be made on the next succeeding Business Day and such
            extension of time shall be included in computing interest, if any,
            in connection with such payment. Whenever any payment of principal
            of, or interest on, a Eurodollar-based Advance or a Quoted Rate
            Advance shall be due on a day which is not a Business Day the date
            of payment thereof shall be extended to the next succeeding Business
            Day unless as a result thereof it would fall in the next calendar
            month, in which case it shall be shortened to the next preceding
            Business Day and, in the case of a payment of principal, interest
            thereon shall be payable for such extended or shortened time, if
            any.

      (4)   All payments to be made by the Company under this Agreement or any
            of the Notes (including without limitation payments under the Swing
            Line Notes) shall be made without set-off or counterclaim, as
            aforesaid, and without deduction for or on account of any present or
            future withholding or other taxes of any nature imposed by any
            governmental authority or of any political subdivision thereof or
            any federation or organization of which such governmental authority
            may at the time of payment be a member, unless Company is compelled
            by law to make payment subject to such tax. In such event, Company
            shall:

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A.    pay to the Agent for Agent's own account and/or, as the case may be, for
      the account of the Banks (and, in the case of any Swing Line Advances, pay
      to the Swing Line Bank which funded such Advances) such additional amounts
      as may be necessary to ensure that the Agent and/or such Bank or Banks
      receive a net amount equal to the full amount which would have been
      receivable had payment not been made subject to such tax; and

B.    remit such tax to the relevant taxing authorities according to applicable
      law, and send to the Agent or the applicable Bank (including the Swing
      Line Bank) or Banks, as the case may be, such certificates or certified
      copy receipts as the Agent or such Bank or Banks shall reasonably require
      as proof of the payment by the Company of any such taxes payable by the
      Company.

      As used herein, the terms "tax", "taxes" and "taxation" include all taxes,
levies, imposts, duties, charges, fees, deductions, withholdings and similar
charges, together with interest thereon and, any taxes, fines or penalties
payable upon amounts paid or payable pursuant to this Section 10.1 (whether
assessed against Company, the Agent or any of the Banks). The Company shall be
reimbursed by the applicable Bank for any payment made by the Company under this
Section 10.1(d) if the applicable Bank is not in compliance with its obligations
under Section 13.14, to the extent set forth therein.

      (b) Application of Proceeds. Notwithstanding anything to the contrary in
this Agreement, following the occurrence and during the continuance of an Event
of Default, the proceeds of any offsets, voluntary payments by the Company or
others, the proceeds of any Collateral and any other sums received or collected
in respect of the Indebtedness (net of Agent's reasonable costs and expenses),
may, at the Agent's discretion, and shall, upon the direction of the Majority
Banks, be applied, first, to Indebtedness evidenced by the Notes or under
Hedging Agreements in such order and manner as determined by the Majority Banks
(subject, however, to the applicable Percentages of the Revolving Credit held by
each of the Banks and provided, however, that the maximum amount of those
proceeds which may be applied to Indebtedness in respect of Hedging Agreements
shall not exceed the maximum amount of the Hedging Reserve stated in the
definition thereof), next, to any other Indebtedness on a pro rata basis, and
then, if there is any excess, to the Company. The application of such proceeds
and other sums to the applicable Indebtedness shall be based on each Bank's
Percentage of such Indebtedness.

      (c) Pro-rata Recovery. If any Bank shall obtain any payment or other
recovery (whether voluntary, involuntary, by application of offset or otherwise)
on account of principal of, or interest on, any of the Notes (or on account of
its participation in any Letter of Credit) in excess of its pro rata share of
payments then or thereafter obtained by all Banks upon principal of and interest
on all Notes (or such participation), such Bank shall purchase from the other
Banks such participations in the Notes (or subparticipations in the Letters of
Credit) held by them as shall be necessary to cause such purchasing Bank to
share the excess payment or other recovery ratably in accordance with the
Percentages of the Revolving Credit with each of them; provided, however, that
if all or any portion of the excess payment or other recovery is thereafter
recovered from such purchasing holder, the purchase shall be rescinded and the
purchase price restored to the extent of such recovery, but without interest.

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      (d) Deposits and Accounts. In addition to and not in limitation of any
rights of any Bank or other holder of any of the Notes under applicable law,
each Bank and each other such holder shall, upon acceleration of the
indebtedness under the Notes and without notice or demand of any kind, have the
right to appropriate and apply to the payment of the Notes owing to it (whether
or not then due) any and all balances, credits, deposits, accounts or moneys of
Company then or thereafter with such Bank or other holder; provided, however,
that any such amount so applied by any Bank or other holder on any of the Notes
owing to it shall be subject to the provisions of Section 10.3 hereof.

      11. CHANGES IN LAW OR CIRCUMSTANCES; INCREASED COSTS.

      (a) Reimbursement of Prepayment Costs. If Company makes any payment of
principal with respect to any Eurodollar-based Advance or Quoted Rate Advance on
any day other than the last day of the Interest Period applicable thereto
(whether voluntarily, by acceleration, or otherwise), or converts or refunds (or
attempts to convert or refund) any such Advance; or if Company fails to borrow,
refund or convert into any Eurodollar-based Advance or Quoted Rate Advance after
notice has been given by Company to Agent in accordance with the terms hereof
requesting such Advance, or if Company fails to make any payment of principal or
interest in respect of a Eurodollar-based Advance or Quoted Rate Advance when
due, Company shall reimburse Agent and Banks, as the case may be, on demand for
any resulting loss, cost or expense incurred by Agent and Banks, as the case may
be as a result thereof, including, without limitation, any such loss, cost or
expense incurred in obtaining, liquidating, employing or redeploying deposits
from third parties, whether or not Agent and Banks, as the case may be, shall
have funded or committed to fund such Advance. Such amount payable by Company to
Agent and Banks, as the case may be may include, without limitation, an amount
equal to the excess, if any, of (a) the amount of interest which would have
accrued on the amount so prepaid, or not so borrowed, refunded or converted, for
the period from the date of such prepayment or of such failure to borrow, refund
or convert, through the last day of the relevant Interest Period, at the
applicable rate of interest for said Advance(s) provided under this Agreement,
over (b) the amount of interest (as reasonably determined by Agent and Banks, as
the case may be) which would have accrued to Agent and Banks, as the case may
be, on such amount by placing such amount on deposit for a comparable period
with leading banks in the interbank Eurodollar market. Calculation of any
amounts payable to any Bank under this paragraph shall be made as though such
Bank shall have actually funded or committed to fund the relevant Advance
through the purchase of an underlying deposit in an amount equal to the amount
of such Advance and having a maturity comparable to the relevant Interest
Period; provided, however, that any Bank may fund any Eurodollar-based Advance
or Quoted Rate Advance, as the case may be, in any manner it deems fit and the
foregoing assumptions shall be utilized only for the purpose of the calculation
of amounts payable under this paragraph. Upon the written request of Company,
Agent and Banks shall deliver to Company a certificate setting forth the basis
for determining such losses, costs and expenses, which certificate shall be
conclusively presumed correct, absent manifest error.

      (b) Eurodollar Lending Office. For any Advance to which the
Eurodollar-based Rate is applicable, if Agent or a Bank, as applicable, shall
designate a Eurodollar Lending Office which maintains books separate from those
of the rest of Agent or such Bank, Agent or such

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Bank, as the case may be, shall have the option of maintaining and carrying the
relevant Advance on the books of such Eurodollar Lending Office.

      (c) Circumstances Affecting Eurodollar-based Rate Availability. If with
respect to any Interest Period, Agent or the Majority Banks (after consultation
with Agent) shall determine that, by reason of circumstances affecting the
foreign exchange and interbank markets generally or deposits in eurodollars, as
the case may be, in the applicable amounts are not being offered to the Agent or
such Banks for such Interest Period, then Agent shall forthwith give notice
thereof to the Company. Thereafter, until Agent notifies Company that such
circumstances no longer exist, (i) the obligation of Banks to make
Eurodollar-based Advances, and the right of Company to convert an Advance to or
refund an Advance as a Eurodollar-based Advance, as the case may be, shall be
suspended, and (ii) the Company shall repay in full (or cause to be repaid in
full) the then outstanding principal amount of each such Eurodollar-based
Advance covered hereby, together with accrued interest thereon, any amounts
payable under Sections 11.1 and 11.8 hereof, and all other amounts payable
hereunder on the last day of the then current Interest Period applicable to such
Advance. Upon the date for repayment as aforesaid and unless Company notifies
Agent to the contrary within two (2) Business Days after receiving a notice from
Agent pursuant to this Section, such outstanding principal amount shall be
converted to a Prime-based Advance as of the last day of such Interest Period.

      (d) Laws Affecting Eurodollar-based Advance Availability. If, after the
date of this Agreement, the introduction of, or any change in, any applicable
law, rule or regulation or in the interpretation or administration thereof by
any governmental authority charged with the interpretation or administration
thereof, or compliance by any of the Banks (or any of their respective
Eurodollar Lending Offices) with any request or directive (whether or not having
the force of law) of any such authority, shall make it unlawful or impossible
for any of the Banks (or any of their respective Eurodollar Lending Offices) to
honor its obligations hereunder to make or maintain any Advance with interest at
the Eurodollar-based Rate such Bank shall forthwith give notice thereof to
Company and to Agent. Thereafter, (a) the obligations of Banks to make
Eurodollar-based Advances and the right of Company to convert an Advance into or
refund an Advance as a Eurodollar-based Advance shall be suspended and
thereafter Company may select as Applicable Interest Rates only those which
remain available and which are permitted to be selected hereunder, and (b) if
any of the Banks may not lawfully continue to maintain an Advance to the end of
the then current Interest Period applicable thereto as a Eurodollar-based
Advance, the applicable Advance shall immediately be converted to a Prime-based
Advance and the Prime-based Rate shall be applicable thereto for the remainder
of such Interest Period. For purposes of this Section, a change in law, rule,
regulation, interpretation or administration shall include, without limitation,
any change made or which becomes effective on the basis of a law, rule,
regulation, interpretation or administration presently in force, the effective
date of which change is delayed by the terms of such law, rule, regulation,
interpretation or administration.

      (e) Increased Cost of Eurodollar-based Advances. If the adoption after the
date of this Agreement of, or any change after the date of this Agreement in,
any applicable law, rule or regulation of or in the interpretation or
administration thereof by any governmental authority, central bank or comparable
agency charged with the interpretation or administration thereof, or compliance
by Agent or any of the Banks (or any of their respective Eurodollar Lending
Offices)

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with any request or directive (whether or not having the force of law) made by
any such authority, central bank or comparable agency after the date hereof:

      (1)   shall subject any of the Banks (or any of their respective
            Eurodollar Lending Offices) to any tax, duty or other charge with
            respect to any Advance or any Note or shall change the basis of
            taxation of payments to any of the Banks (or any of their respective
            Eurodollar Lending Offices) of the principal of or interest on any
            Advance or any Note or any other amounts due under this Agreement in
            respect thereof (except for changes in the rate of tax on the
            overall net income of any of the Banks or any of their respective
            Eurodollar Lending Offices imposed by the jurisdiction in which such
            Bank's principal executive office or Eurodollar Lending Office is
            located); or

      (2)   shall impose, modify or deem applicable any reserve (including,
            without limitation, any imposed by the Board of Governors of the
            Federal Reserve System), special deposit or similar requirement
            against assets of, deposits with or for the account of, or credit
            extended by, any of the Banks (or any of their respective Eurodollar
            Lending Offices) or shall impose on any of the Banks (or any of
            their respective Eurodollar Lending Offices) or the foreign exchange
            and interbank markets any other condition affecting any Advance or
            any of the Notes;

and the result of any of the foregoing is to increase the costs to any of the
Banks of maintaining any part of the Indebtedness hereunder as a
Eurodollar-based Advance or to reduce the amount of any sum received or
receivable by any of the Banks under this Agreement or under the Notes in
respect of a Eurodollar-based Advance, then such Bank shall promptly notify
Agent (or, in the case of a Swing Line Advance, shall notify Company directly,
with a copy of such notice to Agent), and Agent (or such Bank, as aforesaid)
shall promptly notify Company of such fact and demand compensation therefor and,
within fifteen (15) days after such notice, Company agrees to pay to such Bank
such additional amount or amounts as will compensate such Bank or Banks for such
increased cost or reduction. Agent will promptly notify Company of any event of
which it has knowledge which will entitle Banks to compensation pursuant to this
Section, or which will cause Company to incur additional liability under
Sections 11.1 and 11.6 hereof, provided that Agent shall incur no liability
whatsoever to the Banks or Company in the event it fails to do so. A certificate
of Agent (or such Bank, if applicable) setting forth the basis for determining
such additional amount or amounts necessary to compensate such Bank or Banks
shall be conclusively presumed to be correct save for manifest error. For
purposes of this Section, a change in law, rule, regulation, interpretation,
administration, request or directive shall include, without limitation, any
change made or which becomes effective on the basis of a law, rule, regulation,
interpretation, administration, request or directive presently in force, the
effective date of which change is delayed by the terms of such law, rule,
regulation, interpretation, administration, request or directive.

      (f) Indemnity. The Company will indemnify Agent and each of the Banks
against any loss or expense which may arise or be attributable to the Agent's
and each Bank's obtaining, liquidating or employing deposits or other funds
acquired to effect, fund or maintain the Advances (a) as a consequence of any
failure by the Company to make any payment when due of any amount due hereunder
in connection with a Eurodollar-based Advance, (b) due to any failure

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of the Company to borrow, refund or convert on a date specified therefor in a
Request for Advance or request for Swing Line Advance or (c) due to any payment,
prepayment or conversion of any Eurodollar-based Advance on a date other than
the last day of the Interest Period for such Advance. Such loss or expense shall
be calculated based upon the present value, as applicable, of payments due from
the Company with respect to a deposit obtained by the Agent or any of the Banks
in order to fund such Advance to the Company. The Agent's and each Bank's, as
applicable, calculations of any such loss or expense shall be furnished to the
Company and shall be conclusive, absent manifest error.

      (g) Other Increased Costs. In the event that at any time after the date of
this Agreement any change in law such as described in Section 11.5 hereof,
shall, in the opinion of the Agent or any of the Banks (as certified to Agent in
writing by such Bank) require that the Revolving Credit, the Swing Line, or any
other Indebtedness or commitment under this Agreement or any of the other Loan
Documents be treated as an asset or otherwise be included for purposes of
calculating the appropriate amount of capital to be maintained by each of the
Banks or any corporation controlling such Banks, as the case may be (or shall
increase the amount of capital required under such law, as of the date hereof,
to be so maintained), the Agent, in consultation with the Banks, shall notify
the Company. The Company and the Agent shall thereafter negotiate in good faith
an agreement to increase the Revolving Credit Facility Fee, or other fees
payable to the Agent, for the benefit of the Banks under this Agreement, which
in the opinion of the Agent (in consultation with the Banks), will adequately
compensate the Banks for the costs associated with such change in law. If such
increase is approved in writing by the Company within thirty (30) days from the
date of the notice to the Company from the Agent, the Revolving Credit Facility
Fee or other fees (if applicable) payable by the Company under this Agreement
shall, effective from the date of such agreement, include the amount of such
agreed increase. If the Company and the Agent (in consultation with the Banks)
are unable to agree on such an increase within thirty (30) days from the date of
the notice to the Company, the Company shall have the option, exercised by
written notice to the Agent within forty-five (45) days from the date of the
aforesaid notice to the Company from the Agent, to terminate the Revolving
Credit and the Swing Line, as the case may be, or other commitments if
applicable, in which event, all sums then outstanding to Banks and to Agent
hereunder shall be due and payable in full. If (a) the Company and the Agent (in
consultation with the Banks) fail to agree on an increase in the Revolving
Credit Facility Fee or other fees (if applicable), and (b) the Company fails to
give timely notice that it has elected to exercise its option to terminate the
Revolving Credit or other commitments, if applicable, as set forth above, then
the Revolving Credit and the Swing Line, and such other commitments shall
automatically terminate as of the last day of the aforesaid forty-five (45) day
period, in which event all sums then outstanding to Banks and to Agent hereunder
shall be due and payable in full.

      (h) Right of Banks to Fund through Branches and Affiliates. Each Bank
(including without limitation the Swing Line Bank) may, if it so elects, fulfill
its commitment as to any Advance hereunder by designating a branch or Affiliate
of such Bank to make such Advance; provided that (a) such Bank shall remain
solely responsible for the performances of its obligations hereunder and (b) no
such designation shall result in any material increased costs to the Company.

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      12. AGENT

      (a) Appointment of Agent. Each Bank and the holder of each Note appoints
and authorizes Agent to act on behalf of such Bank or holder under the Loan
Documents and to exercise such powers hereunder and thereunder as are
specifically delegated to or required of Agent by the terms hereof and thereof,
together with such powers as may be reasonably incidental thereto, including
without limitation the power to execute or authorize the execution of financing
or similar statements or notices, and other documents. In performing its
functions and duties under this Agreement, the Agent shall act solely as agent
of the Banks and does not assume and shall not be deemed to have assumed any
obligation towards or relationship of agency or trust with or for the Company or
any of its Subsidiaries. Each Bank agrees (which agreement shall survive any
termination of this Agreement) to reimburse Agent for all reasonable
out-of-pocket expenses (including house and outside attorneys' fees) incurred by
Agent hereunder or in connection herewith or with an Event of Default or in
enforcing the obligations of Company under this Agreement or the other Loan
Documents or any other instrument executed pursuant hereto, and for which Agent
is not reimbursed by Company, pro rata according to such Bank's Percentage, but
excluding any such expenses resulting from Agent's gross negligence or willful
misconduct. Any such amounts so paid by the Banks shall constitute additional
Indebtedness hereunder. Agent shall not be required to take any action under the
Loan Documents, or to prosecute or defend any suit in respect of the Loan
Documents, unless indemnified to its satisfaction by the Banks against loss,
costs, liability and expense (excluding liability resulting from its gross
negligence or willful misconduct). If any indemnity furnished to Agent shall
become impaired or Agent shall elect to have such indemnity confirmed by the
Banks (as to specific matters or otherwise), in each case as determined by Agent
in its reasonable judgment, Agent shall give notice thereof to each Bank and,
until such additional indemnity is provided or such existing indemnity is
confirmed, Agent may cease to do the acts to be indemnified against until such
additional indemnity is given or confirmed.

      (b) Deposit Account with Agent. Company hereby authorizes Agent to charge
its general deposit account, if any, maintained with Agent for the amount of any
principal, interest, or other amounts or costs due under this Agreement when the
same becomes due and payable under the terms of this Agreement or the Notes.

      (c) Exculpatory Provisions. The Agent shall have no duties or
responsibilities except those expressly set forth herein, and shall not, by
reason of this Agreement or otherwise, have a fiduciary relationship with any
Bank (and no implied covenants or other obligations shall be read into this
Agreement against the Agent); neither Agent nor any of its directors, officers,
employees or agents shall be liable to any Bank for any action taken or omitted
to be taken by it or them under this Agreement or any document executed pursuant
hereto, or in connection herewith or therewith, except for its or their own
willful misconduct or gross negligence, nor be responsible for or have any
duties to ascertain, inquire into or verify (a) any recitals or warranties
herein or therein, (b) the effectiveness, enforceability, validity or due
execution of this Agreement or any document executed pursuant hereto, or any
security thereunder, (c) the performance by Company or any of its Subsidiaries
of its obligations hereunder or thereunder, or (d) the satisfaction of any
condition hereunder or thereunder, including without limitation in connection
with the making of any Advance or the issuance of any Letter of Credit, other
than to confirm receipt of items expressly required to be delivered to Agent.
Agent shall be entitled to

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rely upon advice of counsel concerning legal matters and upon any notice,
consent, certificate, statement or writing which it believes to be genuine and
to have been presented by a proper person. Agent may treat the payee of any Note
as the holder thereof. Agent may employ agents and may consult with legal
counsel, independent public accountants and other experts selected by it and
shall not be liable to the Banks (except as to money or property received by
them or their authorized agents), for the negligence or misconduct of any such
agent selected by it with reasonable care or for any action taken or omitted to
be taken by it in good faith in accordance with the advice of such counsel,
accountants or experts.

      (d) Successor Agents. Agent may resign as such at any time upon at least
30 days prior notice to Company and all Banks. If Agent at any time shall resign
or if the office of Agent shall become vacant for any other reason, Majority
Banks shall, by written instrument, appoint a successor Agent (consisting of any
other Bank or financial institution satisfactory to such Majority Banks) which
shall thereupon become Agent hereunder and shall be entitled to receive from the
prior Agent such documents of transfer and assignment as such successor Agent
may reasonably request. Any such successor Agent shall be a bank or a trust
company or other financial institution which maintains an office in the United
States or any state thereof, or an affiliate of such bank or trust company or
other financial institution which is engaged in the banking business, and shall
have a combined capital and surplus of at least $500,000,000. If a successor is
not so appointed or does not accept such an appointment before the retiring
Agent's resignation becomes effective, the retiring Agent may appoint a
temporary successor to act until such appointment by the Majority Banks is made
and accepted, or if no such temporary successor is appointed as provided above
by the retiring Agent, the Majority Banks shall thereafter perform all of the
duties of the retiring Agent hereunder until such appointment by the Majority
Banks is made and accepted. Such successor Agent shall succeed to all of the
rights and obligations of the retiring Agent as if originally named. The
retiring Agent shall duly assign, transfer and deliver to such successor Agent
all moneys at the time held by the retiring Agent hereunder after deducting
therefrom its expenses for which it is entitled to be reimbursed. Upon such
succession of any such successor Agent, the retiring agent shall be discharged
from its duties and obligations hereunder, except for its gross negligence or
willful misconduct arising prior to its retirement hereunder, and the provisions
of this Section 12 shall continue in effect for its benefit in respect of any
actions taken or omitted to be taken by it while it was acting as Agent.

      (e) Loans by Agent: Agent in its Individual Capacity. Agent shall have the
same rights and powers with respect to the credit extended by it and the Notes
held by it as any Bank and may exercise the same as if it were not Agent, and
the term "Bank" and, when appropriate, "holder" shall include Agent in its
individual capacity. Agent and its affiliates may (without having to account
therefor to any Bank) accept deposits from, lend money to, and generally engage
in any kind of banking, trust, financial advisory, investment, risk management
or other business with the Company or any of its Subsidiaries as if it were not
acting as the Agent hereunder, and may accept interest, fees and other
consideration therefor without having to account for the same to the Banks.

      (f) Credit Decisions. Each Bank acknowledges that it has, independently of
Agent and each other Bank and based on the financial statements of Company and
the Subsidiaries and such other documents, information and investigations as it
has deemed appropriate, made its own

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credit decision to extend credit hereunder from time to time. Each Bank also
acknowledges that it will, independently of Agent and each other Bank and based
on such other documents, information and investigations as it shall deem
appropriate at any time, continue to make its own credit decisions as to
exercising or not exercising from time to time any rights and privileges
available to it under this Agreement or any document executed pursuant hereto.

      (g) Notices by Agent. Agent shall give prompt notice to each Bank of its
receipt of each notice or request required or permitted to be given to Agent by
Company pursuant to the terms of this Agreement and shall promptly distribute to
the Banks any reports received from the Company or any of its Subsidiaries under
the terms hereof, or other material information or documents received by Agent,
in its capacity as Agent, from the Company or its Subsidiaries.

      (h) Agent's Fees. From and after the Effective Date and thereafter until
the Indebtedness has been repaid and discharged in full, and no commitment to
fund any loan hereunder is outstanding, the Company shall pay to Agent and
discharge in full, agency and similar fees set forth (or to be set forth from
time to time) in a letter agreement between Company and Agent, such fees to be
payable on the terms set forth therein. The Agent's Fees described in this
Section 12.8 shall not be refundable under any circumstances.

      (i) Nature of Agency. The appointment of Agent as agent is for the
convenience of Banks and Company in making Advances of the Revolving Credit or
any other Indebtedness of Company hereunder, and collecting fees and principal
and interest on the Indebtedness. No Bank is purchasing any Indebtedness from
Agent and this Agreement is not intended to be a purchase or participation
agreement.

      (j) Authority of Agent to Enforce Notes and This Agreement. Each Bank,
subject to the terms and conditions of this Agreement (including, without
limitation, any required approval or direction of the Majority Banks or the
Banks, as applicable, to be obtained by or given to the Agent hereunder),
authorizes the Agent with full power and authority as attorney-in-fact to
institute and maintain actions, suits or proceedings for the collection and
enforcement of the Notes and to file such proofs of debt or other documents as
may be necessary to have the claims of the Banks allowed in any proceeding
relative to the Company, any of its Subsidiaries or its creditors or affecting
its properties, and to take such other actions which Agent considers to be
necessary or desirable for the protection, collection and enforcement of the
Notes, this Agreement or the other Loan Documents, but in each case only to the
extent of any required approval or direction of the Majority Banks or the Banks,
as applicable, obtained by or given to the Agent hereunder.

      (k) Indemnification. The Banks agree to indemnify the Agent in its
capacity as such, to the extent not reimbursed by the Company, pro rata
according to their respective Percentages, from and against any and all claims,
liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
costs, and reasonable out-of-pocket expenses or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by, or asserted against the
Agent in any way relating to or arising out of this Agreement or any of the
other Loan Documents or any action taken or omitted to be taken or suffered in
good faith by the Agent hereunder, provided that no Bank shall be liable for any
portion of any of the foregoing items resulting from the gross negligence or
willful misconduct of the Agent or any of its officers, employees, directors or

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agents. Without limitation of the foregoing, each Bank agrees to reimburse the
Agent and its affiliates promptly upon demand for its ratable share of any
reasonable out-of-pocket expenses (including, without limitation, reasonable
fees and expenses of counsel) incurred by the Agent and its affiliates in
connection with the preparation, execution, delivery, administration,
modification, amendment or enforcement (whether through negotiations, legal
proceedings or otherwise) of, or legal advice in respect of rights or
responsibilities under, this Agreement or any of the other Loan Documents, to
the extent that the Agent and its affiliates are not reimbursed for such
expenses by Company but without limiting the obligation of Company to make such
reimbursement. Each Bank agrees to reimburse the Agent and its affiliates
promptly upon demand for its ratable share of any amounts owing to the Agent and
its affiliates by the Banks pursuant to this Section, provided that, if the
Agent or its affiliates are subsequently reimbursed by Company for such amounts,
they shall refund to the Banks on a pro rata basis the amount of any excess
reimbursement. If the indemnity furnished to the Agent and its affiliates under
this Section shall, in the reasonable judgment of the Agent, be insufficient or
become impaired, Agent shall give notice thereof to each Bank and, until such
additional indemnity is provided or such existing indemnity is confirmed, the
Agent may call for additional indemnity from the Banks and cease, or not
commence, to take any action. Any amounts paid by the Banks hereunder to the
Agent or its affiliates shall be deemed to constitute part of the Indebtedness
hereunder.

      (l) Knowledge of Default. It is expressly understood and agreed that the
Agent (whether in its capacity as issuing bank, Swing Line Bank or otherwise)
shall be entitled to assume that no Default or Event of Default has occurred and
is continuing, unless the officers of the Agent immediately responsible for
matters concerning this Agreement shall have actual (rather than constructive)
knowledge of such occurrence or shall have been notified in a writing specifying
such Default or Event of Default and stating that such notice is a "notice of
default" by a Bank or by Company. Upon receiving such a notice, the Agent shall
promptly notify each Bank of such Default or Event of Default and provide each
Bank with a copy of such notice and, shall endeavor to provide such notice to
the Banks within three (3) Business Days (but without any liability whatsoever
in the event of its failure to do so). The Agent shall also furnish the Banks,
promptly upon receipt, with copies of all other notices or other information
required to be provided by Company hereunder.

      (m) Agent's Authorization; Action by Banks. Except as otherwise expressly
provided herein, whenever the Agent is authorized and empowered hereunder on
behalf of the Banks to give any approval or consent, or to make any request, or
to take any other action, on behalf of the Banks (including without limitation
the exercise of any right or remedy hereunder or under the other Loan
Documents), the Agent shall be required to give such approval or consent, or to
make such request or to take such other action only when so requested in writing
by the Majority Banks or the Banks, as applicable hereunder. Action that may be
taken by Majority Banks or all of the Banks, as the case may be (as provided for
hereunder), may be taken (i) pursuant to a vote at a meeting (which may be held
by telephone conference call) as to which all of the Banks have been given
reasonable advance notice (subject to the requirement that amendments, waivers
or consents under Section 13.11 hereof be made in writing by the Majority Banks
or all the Banks, as applicable), or (ii) pursuant to the written consent of the
requisite Percentages of the Banks as required hereunder, provided that all of
the Banks are given reasonable advance notice of the requests for such consent.

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      (n) Enforcement Actions by the Agent. Except as otherwise expressly
provided under this Agreement or in any of the other Loan Documents and subject
to the terms hereof, Agent will take such action, assert such rights and pursue
such remedies under this Agreement and the other Loan Documents as the Majority
Banks or all of the Banks, as the case may be (as provided for hereunder), shall
direct; provided however, that the Agent shall not be required to act or omit to
act if, in the reasonable judgment of the Agent, such action or omission may
expose the Agent to personal liability for which Agent has not been
satisfactorily indemnified hereunder or is contrary to this Agreement, any of
the Loan documents or applicable law. Except as otherwise expressly provided in
any of the Loan Documents, Agent will not (and will not be obligated to) take
any action, assert any rights or pursue any remedies under this Agreement or any
of the other Loan Documents in violation or contravention of any express
direction or instruction of the Majority Banks or all of the Banks, as the case
may be (as provided for hereunder). Agent may refuse (and will not be obligated)
to take any action, assert any rights or pursue any remedies under this
Agreement or any of the other Loan Documents in the absence of the express
written direction and instruction of the Majority Banks or all of the Banks, as
the case may be (as provided for hereunder). In the event Agent fails, within a
commercially reasonable time, to take such action, assert such rights, or pursue
such remedies as the Majority Banks or all of the Banks, as the case may be (as
provided for hereunder), shall direct in conformity with this Agreement, the
Majority Banks or all of the Banks, as the case may be (as provided for
hereunder), shall have the right to take such action, to assert such rights, or
pursue such remedies on behalf of all of the Banks unless the terms hereof
otherwise require the consent of all the Banks to the taking of such actions (in
which event all of the Banks must join in such action). Except as expressly
provided above or elsewhere in this Agreement or the other Loan Documents, no
Bank (other than the Agent, acting in its capacity as Agent) shall be entitled
to take any enforcement action of any kind under any of the Loan Documents.

      (o) Lead Arranger; Documentation Agent or other Titles. Any Bank
identified on the facing page or signature page of this Agreement or in any
amendment hereto or as designated with consent of the Agent in any assignment
agreement as Lead Arranger, Documentation Agent, Syndication Agent or any
similar titles, shall not have any right, power, obligation, liability,
responsibility or duty under this Agreement as a result of such title other than
those applicable to the Banks as such; provided, however, that such identified
Banks shall be entitled to the benefits afforded to Agent under Sections 12.5,
12.6 and 12.11 hereof. Without limiting the foregoing, the Banks so identified
shall not have or be deemed to have any fiduciary relationship with any Bank as
a result of such title. Each Bank acknowledges that it has not relied, and will
not rely, on the Bank so identified in deciding to enter into this Agreement or
in taking or not taking action hereunder.

      (p) Collateral Matters. (a) The Agent is authorized on behalf of all the
Banks, without the necessity of any notice to or further consent from the Banks
(but subject to the Intercreditor Agreement), from time to time to take any
action with respect to any Collateral or the Collateral Documents which may be
necessary to perfect and maintain a perfected security interest in and Liens
upon the Collateral granted pursuant to the Loan Documents. (b) The Banks
irrevocably authorize the Agent, at its option and in its discretion (but
subject to the Intercreditor Agreement), to release any Lien granted to or held
by the Agent upon any Collateral (i) upon termination of the Revolving Credit
Maximum Amount and payment in full of all Indebtedness payable under this
Agreement and under any other Loan Document; (ii)

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constituting property sold or to be sold or disposed of as part of or in
connection with any disposition not otherwise prohibited hereunder; (iii)
constituting property in which Company or any Subsidiary owned no interest at
the time the Lien was granted or at any time thereafter; or (iv) if approved,
authorized or ratified in writing by the Majority Banks or all the Banks, as the
case may be, as provided in Section 13.11. The Banks further irrevocably
authorize the Agent, at its option and in its discretion, to grant such other
releases as may be necessary to effectuate the New Restructuring (including the
release of Liens on the assets of the T&C Subsidiary and on the equity interests
in the T & C Subsidiary and the release of the T & C Subsidiary from its
obligations under the Guaranty). Upon request by the Agent at any time, the
Banks will confirm in writing the Agent's authority to release particular types
or items of Collateral pursuant to this Section 12.16(b).

      13. MISCELLANEOUS

      (a) Accounting Principles. Where the character or amount of any asset or
liability or item of income or expense is required to be determined or any
consolidation or other accounting computation is required to be made for the
purposes of this Agreement, it shall be done in accordance with GAAP.

      (b) Consent to Jurisdiction. Company hereby irrevocably submits to the
non-exclusive jurisdiction of any United States Federal or Michigan state court
sitting in Detroit in any action or proceeding arising out of or relating to
this Agreement or any of the other Loan Documents and the Company hereby
irrevocably agrees that all claims in respect of such action or proceeding may
be heard and determined in any such United States Federal or Michigan state
court. Company irrevocably consents to the service of any and all process in any
such action or proceeding brought in any court in or of the State of Michigan by
the delivery of copies of such process to the Company at its address specified
on the signature page hereto or by certified mail directed to such address.
Nothing in this Section shall affect the right of the Banks and the Agent to
serve process in any other manner permitted by law or limit the right of the
Banks or the Agent (or any of them) to bring any such action or proceeding
against the Company or any of its property in the courts of any other
jurisdiction. The Company hereby irrevocably waives any objection to the laying
of venue of any such suit or proceeding in the above described courts.

      (c) Law of Michigan. This Agreement and the Notes have been delivered at
Detroit, Michigan, and shall be governed by and construed and enforced in
accordance with the laws of the State of Michigan, except as and to the extent
expressed to the contrary in any of the Loan Documents. Whenever possible each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement
shall be prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

      (d) Interest. In the event the obligation of the Company to pay interest
on the principal balance of the Notes is or becomes in excess of the maximum
interest rate which the Company is permitted by law to contract or agree to pay,
giving due consideration to the execution date of this Agreement, then, in that
event, the rate of interest applicable with respect to such Bank's Percentage of
the Revolving Credit, shall be deemed to be immediately reduced

                                       95

<PAGE>

to such maximum rate and all previous payments in excess of the maximum rate
shall be deemed to have been payments in reduction of principal and not of
interest.

      (e) Closing Costs; Other Costs. To the extent not restricted by any
financial assistance provisions of any applicable law, Company shall pay or
reimburse (a) Agent and its affiliates for payment of, on demand, all reasonable
costs and expenses, including, by way of description and not limitation,
reasonable in-house and outside attorney fees and advances, appraisal and
accounting fees, lien search fees, and required travel costs, incurred by Agent
and its affiliates in connection with the commitment, consummation and closing
of the loans contemplated hereby, or in connection with the administration of
this Agreement or the Other Loan Documents (including the obtaining of legal
advice regarding the rights and responsibilities of the parties hereto) or any
refinancing or restructuring of the loans or Advances provided under this
Agreement or the other Loan Documents, or any amendment or modification thereof
requested by Company, and (b) Agent and its affiliates and each of the Banks, as
the case may be, for all stamp and other taxes and duties payable or determined
to be payable in connection with the execution, delivery, filing or recording of
this Agreement and the other Loan Documents and the consummation of the
transactions contemplated hereby, and any and all liabilities with respect to or
resulting from any delay in paying or omitting to pay such taxes or duties.
Furthermore, all reasonable costs and expenses, including without limitation
attorney fees, incurred by Agent and its affiliates and, after the occurrence
and during the continuance of an Event of Default, by the Banks in revising,
preserving, protecting, exercising or enforcing any of its or any of the Banks'
rights against Company, or otherwise incurred by Agent and its affiliates and
the Banks in connection with any Event of Default or the enforcement of the
loans (whether incurred through negotiations, legal proceedings or otherwise),
including by way of description and not limitation, such charges in any court or
bankruptcy proceedings or arising out of any claim or action by any person
against Agent, its affiliates, or any Bank which would not have been asserted
were it not for Agent's or such affiliate's or Bank's relationship with Company
hereunder or otherwise, shall also be paid by Company. All of said amounts
required to be paid by Company hereunder and not paid forthwith upon demand, as
aforesaid, shall bear interest, from the date incurred to the date payment is
received by Agent, at the Prime-based Rate, plus two percent (2%).

      (f) Notices. Except as otherwise provided herein, all notices or demand
hereunder to the parties hereto shall be sufficient if made in writing and
delivered by messenger or deposited in the mail (certified or registered mail
(or the equivalent thereof), postage prepaid), and addressed to the parties as
set forth on Schedule 13.6 of this Agreement at the Company's address as set
forth on Schedule 13.6 or at such other address as such party may, by written
notice received by the other parties hereto, have designated as its address for
such purpose. Furthermore, pursuant to Section 326 of the USA Patriot Act, the
Agent and the Banks hereby notify the Company that if it or any of its
Subsidiaries open an account, including any loan, deposit account, treasury
management account, or other extension of credit with Agent or any Bank, the
Agent or the applicable Bank will request the applicable Person's name, tax
identification number, business address and other information necessary to
identify such Person (and may request such Person's organizational documents or
other identifying documents) to the extent necessary for the Agent and the
applicable Bank to comply with the USA Patriot Act.

                                       96

<PAGE>

      (g) Further Action. Company, from time to time, upon written request of
Agent will make, execute, acknowledge and deliver or cause to be made, executed,
acknowledged and delivered, all such further and additional instruments, and
take all such further action, as may be required to carry out the intent and
purpose of this Agreement, and to provide for Advances under and payment of the
Notes, according to the intent and purpose herein and therein expressed.

      (h) Successors and Assigns; Assignments and Participations.

      (1)   This Agreement shall be binding upon and shall inure to the benefit
            of Company and the Banks and their respective successors and
            assigns.

      (2)   The foregoing shall not authorize any assignment by Company, of its
            rights or duties hereunder, and no such assignment shall be made (or
            effective) without the prior written approval of the Banks.

      (3)   The Company and Agent acknowledge that each of the Banks may at any
            time and from time to time, subject to the terms and conditions
            hereof, assign or grant participations in such Bank's rights and
            obligations hereunder and under the other Loan Documents to any
            commercial bank, savings and loan association, insurance company,
            pension fund, mutual fund, commercial finance company or other
            similar financial institution, the identity of which institution is
            approved by Company and Agent, such approval not to be unreasonably
            withheld or delayed; provided, however, that (i) the approval of
            Company shall not be required upon the occurrence and during the
            continuance of a Default or Event of Default and (ii) the approval
            of Company and Agent shall not be required for any such sale,
            transfer, assignment or participation to the Affiliate of an
            assigning Bank, any other Bank or any Federal Reserve Bank. The
            Company authorizes each Bank to disclose to any prospective assignee
            or participant, once approved by Company and Agent, any and all
            financial information in such Bank's possession concerning the
            Company which has been delivered to such Bank pursuant to this
            Agreement; provided that each such prospective participant shall
            have executed a confidentiality agreement consistent with the terms
            of Section 13.13 hereof.

      (4)   Each assignment by a Bank of any portion of its rights and
            obligations hereunder and under the other Loan Documents, other than
            assignments to such Bank's Affiliates under Section 13.8(f) hereof,
            shall be made pursuant to an Assignment Agreement ("Assignment
            Agreement") substantially (as determined by Agent), in the form
            attached hereto as Exhibit G (with appropriate insertions acceptable
            to Agent) and shall be subject to the terms and conditions hereof,
            and to the following restrictions:

A.    each assignment shall cover all of the Notes issued by Company hereunder
      to the assigning Bank (and not any particular Note or Notes), and shall be
      for a fixed and not varying percentage thereof, with the same percentage
      applicable to each such Note;

B.    each assignment shall be in a minimum amount of Five Million Dollars
      ($5,000,000);

                                       97

<PAGE>

C.    no assignment shall violate any "blue sky" or other securities law of any
      jurisdiction or shall require the Company or any other Person to file a
      registration statement or similar application with the United States
      Securities and Exchange Commission (or similar state regulatory body) or
      to qualify under the "blue sky" or other securities laws of any
      jurisdiction; and

D.    each assignment shall be accompanied by the assignee's joinder to the
      Intercreditor Agreement, if then in effect; and

E.    no assignment shall be effective unless Agent has received from the
      assignee (or from the assigning Bank) an assignment fee of $3,500 for each
      such assignment.

In connection with any assignment subject to this Section 13.8(d), Company and
Agent shall be entitled to continue to deal solely and directly with the
assigning Bank in connection with the interest so assigned until (x) the Agent
shall have received a notice of assignment duly executed by the assigning Bank
and an Assignment Agreement (with respect thereto) duly executed by the
assigning Bank and each assignee; and (y) the assigning Bank shall have
delivered to the Agent the original of each Note held by the assigning Bank
under this Agreement. From and after the date on which the Agent shall notify
Company and the Bank which has accepted an assignment subject to this Section
13.8(d) that the foregoing conditions shall have been satisfied and all consents
(if any) required shall have been given, the assignee thereunder shall be deemed
to be a party to this Agreement. To the extent that rights and obligations
hereunder shall have been assigned to such assignee as provided in such notice
of assignment (and Assignment Agreement), such assignee shall have the rights
and obligations of a Bank under this Agreement and the other Loan Documents
(including without limitation the right to receive fees payable hereunder in
respect of the period following such assignment). In addition, the assigning
Bank, to the extent that rights and obligations hereunder shall have been
assigned by it as provided in such notice of assignment (and Assignment
Agreement), but not otherwise, shall relinquish its rights and be released from
its obligations under this Agreement and the other Loan Documents.

Within five (5) Business Days following Company's receipt of notice from the
Agent that Agent has accepted and executed a notice of assignment and the duly
executed Assignment Agreement, Company shall, to the extent applicable, execute
and deliver to the Agent in exchange for any surrendered Note, new Note(s)
payable to the order of the assignee in an amount equal to the amount assigned
to it pursuant to such notice of assignment (and Assignment Agreement), and with
respect to the portion of the Indebtedness retained by the assigning Bank, to
the extent applicable, new Note(s) payable to the order of the assigning Bank in
an amount equal to the amount retained by such Bank hereunder shall be executed
and delivered by the Company. Agent, the Banks and the Company acknowledge and
agree that any such new Note(s) shall be given in renewal and replacement of the
surrendered Notes and shall not effect or constitute a novation or discharge of
the Indebtedness evidenced by any surrendered Note, and each such new Note may
contain a provision confirming such agreement. In addition, promptly following
receipt of such Notes, Agent shall prepare and distribute to Company, and each
of the Banks a revised Exhibit D to this Agreement setting forth the applicable
new Percentages of the Banks (including the assignee Bank), taking into account
such assignment.

                                       98

<PAGE>

      (5)   Each Bank agrees that any participation agreement permitted
            hereunder shall comply with all applicable laws and shall be subject
            to the following restrictions (which shall be set forth in the
            applicable participation agreement):

A.    such Bank shall remain the holder of its Notes hereunder, notwithstanding
      any such participation;

B.    except as expressly set forth in this Section 13.8(e) with respect to
      rights of setoff and the benefits of Section 11 hereof, a participant
      shall have no direct rights or remedies hereunder;

C.    a participant shall not reassign or transfer, or grant any
      sub-participations in its participation interest hereunder or any part
      thereof; and

D.    such Bank shall retain the sole right and responsibility to enforce the
      obligations of the Company relating to the Notes and the other Loan
      Documents, including, without limitation, the right to proceed against any
      Guaranties, or cause Agent to do so (subject to the terms and conditions
      hereof), and the right to approve any amendment, modification or waiver of
      any provision of this Agreement without the consent of the participant
      (other than a participant which is an Affiliate of such Bank), except for
      those matters covered by Section 13.11(a) through (e) and (h) hereof
      (provided that a participant may exercise approval rights over such
      matters only on an indirect basis, acting through such Bank, and Company,
      Agent and the other Banks may continue to deal directly with such Bank in
      connection with such Bank's rights and duties hereunder).

Company agrees that each participant shall be deemed to have the right of setoff
under Section 10.4 hereof in respect of its participation interest in amounts
owing under this Agreement and the other Loan Documents to the same extent as if
the Indebtedness were owing directly to it as a Bank under this Agreement, shall
be subject to the pro rata recovery provisions of Section 10.3 hereof and shall
be entitled to the benefits of Section 11 hereof. The amount, terms and
conditions of any participation shall be as set forth in the participation
agreement between the issuing Bank and the Person purchasing such participation,
and none of the Company, the Agent and the other Banks shall have any
responsibility or obligation with respect thereto, or to any Person to whom any
such participation may be issued. No such participation shall relieve any
issuing Bank of any of its obligations under this Agreement or any of the other
Loan Documents (including without limitation the Collateral Documents), and all
actions hereunder shall be conducted as if no such participation had been
granted.

      (6)   Each assignment by a Bank to its Affiliates of all or any portion of
            the Notes, or any Advances thereunder, may be made on such terms and
            conditions as determined by such Bank (rather than pursuant to
            Section 13.8(d) hereof), provided however that (i) following each
            such assignment, the assigning Bank shall remain responsible for the
            performance of its obligations under this Agreement and the other
            Loan Documents (including without limitation its obligations in
            respect of any Notes and Advances thereunder so assigned), and each
            such Affiliate assignee shall not be deemed a "Bank" hereunder, (ii)
            Company and the Agent shall be entitled to continue to deal solely
            and directly

                                       99

<PAGE>

            with such assigning Bank in connection with such Bank's rights and
            obligations under this Agreement and the other Loan Documents, (iii)
            such assigning Bank shall retain the sole right and responsibility
            to enforce the obligations of Company under this Agreement and the
            other Loan Documents. In connection with assignments to its
            Affiliates under this Section 13.8(f), an assigning Bank shall act
            as agent for its Affiliates having received assignments hereunder,
            and may appoint such Affiliates as such Bank's applicable Eurodollar
            Lending Office. Furthermore with respect to such assignments under
            this Section 13.8(f), it is expressly acknowledged that the
            assignment fee provided for in Section 13.8(d)(iv) shall not apply.

      (7)   Nothing in this Agreement, the Notes or the other Loan Documents,
            expressed or implied, is intended to or shall confer on any Person
            other than the respective parties hereto and thereto and their
            successors and assignees and participants permitted hereunder and
            thereunder any benefit or any legal or equitable right, remedy or
            other claim under this Agreement, the Notes or the other Loan
            Documents.

      (i) Indulgence. No delay or failure of Agent and the Banks in exercising
any right, power or privilege hereunder shall affect such right, power or
privilege nor shall any single or partial exercise thereof preclude any other or
further exercise thereof, or the exercise of any other right, power or
privilege. The rights of Agent and the Banks hereunder are cumulative and are
not exclusive of any rights or remedies which Agent and the Banks would
otherwise have.

      (j) Counterparts. This Agreement may be executed in several counterparts,
and each executed copy shall constitute an original instrument, but such
counterparts shall together constitute but one and the same instrument.

      (k) Amendment and Waiver. No amendment or waiver of any provision of this
Agreement or any other Loan Document, or consent to any departure by the Company
therefrom, shall in any event be effective unless the same shall be in writing
and signed by the Majority Banks (or signed by the Agent at the direction of the
Majority Banks), and then such waiver or consent shall be effective only in the
specific instance and for the specific purpose for which given; provided,
however, (X) that no amendment, waiver or consent shall increase the Percentage
or the stated commitment amounts applicable to any Bank unless approved, in
writing, by the affected Bank and (Y) that no amendment, waiver or consent
shall, unless in writing and signed by all the Banks (or signed by Agent at the
direction of all of the Banks), do any of the following: (a) increase the
Revolving Credit Maximum Amount, except in accordance with Section 2.18 hereof,
(b) reduce the principal of, or interest on, the Notes or any Fees or other
amounts payable hereunder, (c) postpone any date fixed for any payment of
principal of, or interest on, the Notes or any Fees or other amounts payable
hereunder, (d) waive any Event of Default specified in Section 9.1(a) or (b)
hereof, (e) release or defer the granting or perfecting of a lien or security
interest in any collateral or release any guaranty or similar undertaking
provided by any Person, except as shall be otherwise expressly provided in this
Agreement, the Intercreditor Agreement or any other Loan Document, (f) take any
action which requires the signing of all Banks pursuant to the terms of this
Agreement or any other Loan Document, (g) change the aggregate unpaid principal
amount of the Notes which shall be required for the Banks

                                       100

<PAGE>

or any of them to take any action under this Agreement or any other Loan
Document, (h) change this Section 13.11, or (i) change the definition of
"Majority Banks," "Percentage" or "Borrowing Base Limitation," and provided
further, however, that (x) no amendment, waiver, or consent shall, unless in
writing and signed by the Agent in addition to all the Banks, affect the rights
or duties of the Agent under this Agreement or any other Loan Document, whether
in its capacity as Agent, issuing bank or Swing Line Bank and (y) no amendment,
waiver, or consent shall, unless in writing and signed by the Lead Arranger in
addition to all the Banks, affect the rights or duties of the Lead Arranger
under this Agreement or any other Loan Document. All references in this
Agreement to "Banks" or "the Banks" shall refer to all Banks, unless expressly
stated to refer to Majority Banks.

      (l) Taxes and Fees. Should any tax (other than a tax based upon the net
income of any Bank or Agent by any jurisdiction where a Bank or Agent is
located), recording or filing fee become payable in respect of this Agreement or
any of the other Loan Documents or any amendment, modification or supplement
hereof or thereof, the Company agrees to pay the same together with any interest
or penalties thereon and agrees to hold the Agent and the Banks harmless with
respect thereto.

      (m) Confidentiality. Agent and each Bank agrees that without the prior
consent of Company, it will not disclose (other than to its employees, to
another Bank or to its auditors or counsel) any information with respect to the
Company or any of its Subsidiaries which is furnished pursuant to the terms and
conditions of this Agreement or any of the other Loan Documents or which is
designated (in writing) by Company to be confidential; provided that Agent or
any Bank may disclose any such information (a) as has become generally available
to the public or has been lawfully obtained by Agent or such Bank from any third
party under no duty of confidentiality to the Company known to Agent or such
Bank after reasonable inquiry, (b) as may be required or appropriate in any
report, statement or testimony submitted to, or in respect of any inquiry by,
any municipal, state or federal regulatory body having or claiming to have
jurisdiction over Agent or such Bank, including the Board of Governors of the
Federal Reserve System of the United States or the Federal Deposit Insurance
Corporation or similar organizations (whether in the United States or elsewhere)
or their successors, (c) as may be required or appropriate in respect of any
summons or subpoena or in connection with any litigation, (d) in order to comply
with any law, order, regulation or ruling applicable to Agent or such Bank, and
(e) to any permitted transferee or assignee or to any approved participant of,
or with respect to, the Notes, as aforesaid, which has signed a confidentiality
agreement consistent with the terms of this Section 13.13 hereof.

      (n) Withholding Taxes. If any Bank is not a United States person within
the meaning of Section 7701(a)(30) of the Internal Revenue Code, such Bank shall
promptly (but in any event prior to the initial payment of interest hereunder)
deliver to the Agent two executed copies of (i) Internal Revenue Service Form
W-8BEN or any successor form specifying the applicable tax treaty between the
United States and the jurisdiction of such Bank's domicile which provides for
the exemption from withholding on interest payments to such Bank, (ii) Internal
Revenue Service Form W-8ECI or any successor form evidencing that the income to
be received by such Bank hereunder is effectively connected with the conduct of
a trade or business in the United States or (iii) other evidence satisfactory to
the Agent that such Bank is exempt from United States income tax withholding
with respect to such income; provided, however, that such Bank

                                       101

<PAGE>

shall not be required to deliver to Agent the aforesaid forms or other evidence
with respect to Advances to the Company, if such Bank has assigned its entire
interest in the Revolving Credit (including any outstanding Advances thereunder
and participations in Letters of Credit issued hereunder), Swing Line and any
Notes issued to it by the Company, to an Affiliate which is incorporated under
the laws of the United States or a state thereof, and so notifies the Agent.
Such Bank shall amend or supplement any such form or evidence as required to
insure that it is accurate, complete and non-misleading at all times. Promptly
upon notice from the Agent of any determination by the Internal Revenue Service
that any payments previously made to such Bank hereunder were subject to United
States income tax withholding when made, such Bank shall pay to the Agent the
excess of the aggregate amount required to be withheld from such payments over
the aggregate amount actually withheld by the Agent. In addition, from time to
time upon the reasonable request and at the sole expense of the Company, each
Bank and the Agent shall (to the extent it is able to do so based upon
applicable facts and circumstances), complete and provide the Company with such
forms, certificates or other documents as may be reasonably necessary to allow
the Company to make any payment under this Agreement or the other Loan Documents
without any withholding for or on the account of any tax under Section 10.1(d)
hereof (or with such withholding at a reduced rate), provided that the execution
and delivery of such forms, certificates or other documents does not adversely
affect or otherwise restrict the right and benefits (including without
limitation economic benefits) available to such Bank or the Agent, as the case
may be, under this Agreement or any of the other Loan Documents, or under or in
connection with any transactions not related to the transactions contemplated
hereby.

      (o) Effective Upon Execution. This Agreement shall become effective upon
the later of the Effective Date and the execution hereof by Banks, Agent and the
Company, and the issuance by the Company of the Revolving Credit Notes and the
Swing Line Notes hereunder, and shall remain effective until the Indebtedness
has been repaid and discharged in full and no commitment to extend any credit
hereunder remains outstanding.

      (p) Severability. In case any one or more of the obligations of the
Company under this Agreement, the Notes or any of the other Loan Documents shall
be invalid, illegal or unenforceable in any jurisdiction, the validity, legality
and enforceability of the remaining obligations of the Company shall not in any
way be affected or impaired thereby, and such invalidity, illegality or
unenforceability in one jurisdiction shall not affect the validity, legality or
enforceability of the obligations of the Company under this Agreement, the Notes
or any of the other Loan Documents in any other jurisdiction.

      (q) Table of Contents and Headings. The table of contents and the headings
of the various subdivisions hereof are for convenience of reference only and
shall in no way modify or affect any of the terms or provisions hereof.

      (r) Construction of Certain Provisions. If any provision of this Agreement
or any of the other Loan Documents refers to any action to be taken by any
Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person,
whether or not expressly specified in such provision.

      (s) Independence of Covenants. Each covenant hereunder shall be given
independent effect (subject to any exceptions stated in such covenant) so that
if a particular action or

                                      102

<PAGE>

condition is not permitted by any such covenant (taking into account any such
stated exception), the fact that it would be permitted by an exception to, or
would be otherwise within the limitations of, another covenant shall not avoid
the occurrence of a Default or an Event of Default if such action is taken or
such condition exists.

      (t) Reliance on and Survival of Various Provisions. All terms, covenants,
agreements, representations and warranties of the Company or any party to any of
the Loan Documents made herein or in any of the other Loan Documents or in any
certificate, report, financial statement or other document furnished by or on
behalf of the Company, any such party in connection with this Agreement or any
of the other Loan Documents shall be deemed to have been relied upon by the
Banks, notwithstanding any investigation heretofore or hereafter made by any
Bank or on such Bank's behalf, and those covenants and agreements of the Company
set forth in Section 11.6 hereof (together with any other indemnities of the
Company contained elsewhere in this Agreement or in any of the other Loan
Documents, including but not limited to Sections 7.14, 11.1, 11.5, 11.7, 13.5
and 13.12) and of Banks set forth in Sections 12.1, 12.11, 12.12 and 13.13
hereof shall, notwithstanding anything to the contrary contained in this
Agreement, survive the repayment in full of the Indebtedness and the termination
of any commitments to make Advances hereunder.

      (u) Complete Agreement; Amendment and Restatement. This Agreement, the
Notes, any Requests for Advance or Letters of Credit hereunder, the other Loan
Documents and any agreements, certificates, or other documents given to secure
the Indebtedness, contain the entire agreement of the parties hereto, and none
of the parties hereto shall be bound by anything not expressed in writing. This
Agreement constitutes an amendment and restatement of the Prior Credit
Agreement, which Prior Credit Agreement is fully superseded and amended and
restated in its entirety hereby; provided, however, that the Indebtedness
governed by the Prior Credit Agreement shall remain outstanding and in full
force and effect and provided further that this Agreement does not constitute a
novation of such Indebtedness.

                     [SIGNATURES FOLLOW ON SUCCEEDING PAGES]

                                       103

<PAGE>

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

COMPANY:                                   AGENT:

CREDIT ACCEPTANCE                          COMERICA BANK, As Agent
CORPORATION

By: /s/ Douglas W. Busk                    By: /s/ Harve C. Light
    -------------------------                  ---------------------------------

Its: Treasurer                             Its: VP

                                       104

<PAGE>

                                           BANKS:

                                           COMERICA BANK

                                           By: /s/ Harve C. Light
                                               ---------------------------------

                                           Its: VP

SIGNATURE PAGE FOR FOURTH AMENDED AND RESTATED
CREDIT ACCEPTANCE CORPORATION CREDIT AGREEMENT

                                       105

<PAGE>

                                           BANK OF AMERICA, N.A.

                                           By: /s/ Jason Cassity
                                               ---------------------------------

                                          Its: Vice President

SIGNATURE PAGE FOR FOURTH AMENDED AND RESTATED
CREDIT ACCEPTANCE CORPORATION CREDIT AGREEMENT

                                       106

<PAGE>

                                           LASALLE BANK NATIONAL ASSOCIATION

                                           By: /s/ Denis J. Campbell
                                               ---------------------------------

                                           Its: SVP

SIGNATURE PAGE FOR FOURTH AMENDED AND RESTATED
CREDIT ACCEPTANCE CORPORATION CREDIT AGREEMENT

                                       107

<PAGE>

                                           HARRIS N.A.

                                           By: /s/ Paul Rubrich
                                               ---------------------------------

                                           Its: Vice President

SIGNATURE PAGE FOR FOURTH AMENDED AND RESTATED
CREDIT ACCEPTANCE CORPORATION CREDIT AGREEMENT

                                       108

<PAGE>

                                           FIFTH THIRD BANK
                                           (EASTERN MICHIGAN)

                                           By: /s/ John Antonczak
                                               ---------------------------------

                                           Its: Vice President

SIGNATURE PAGE FOR FOURTH AMENDED AND RESTATED
CREDIT ACCEPTANCE CORPORATION CREDIT AGREEMENT

                                       109

<PAGE>

                                           NATIONAL CITY BANK OF THE
                                           MIDWEST FORMERLY KNOWN AS NATIONAL
                                           CITY BANK OF MICHIGAN/ILLINOIS

                                           By: /s/ Michael Kell
                                               ---------------------------------

                                           Its: Vice President_

SIGNATURE PAGE FOR FOURTH AMENDED AND RESTATED
CREDIT ACCEPTANCE CORPORATION CREDIT AGREEMENT

                                       110

<PAGE>

                                  Attachment 1

                                 SCHEDULE 1.1(1)

                                 PRICING MATRIX

<TABLE>
<CAPTION>
                             THE APPLICABLE MARGIN FOR             APPLICABLE FEE PERCENTAGE FOR
                        -------------------------------------- ---------------------------------------
                                          ADVANCES OF THE
                                          REVOLVING CREDIT
                        ADVANCES AT THE   CARRIED AT THE
  NOTWITHSTANDING THE   PRIME-BASED RATE EURODOLLAR-BASED RATE REVOLVING CREDIT  LETTER OF CREDIT
COMPANY'S RATING LEVEL:      SHALL BE         SHALL BE         FACILITY FEE             FEE
----------------------- ---------------- --------------------- ----------------- ---------------------
<S>                     <C>              <C>                   <C>               <C>
                              0%                1.30%              .6000%             1.425%
                                                                                    (inclusive of
                                                                                      facing fee)
</TABLE>

----
(1) All terms as defined in the Agreement.

                                       111

<PAGE>

                                  SCHEDULE 3.11

                           EXISTING LETTERS OF CREDIT

<TABLE>
<CAPTION>
LC NUMBER        APPLICANT            BENEFICIARY       EXPIRATION DATE    AMOUNT
---------  --------------------  ---------------------  ---------------  ----------
<S>        <C>                   <C>                    <C>              <C>
578094-03  CAC Reinsurance Ltd.  Combined Insurance         5/26/06      $2,500,000
                                 Company of America

565237-03  CAC Reinsurance Ltd.  American Bankers Life      5/26/06      $   50,000
                                 Assurance Co. of
                                         Florida
</TABLE>

      The Account Party for each Letter of Credit described in this Schedule is
CAC Reinsurance Ltd. solely, and not jointly and severally with the Company.

                                       112

<PAGE>

                                  SCHEDULE 6.5

                                  SUBSIDIARIES

See attached.

<TABLE>
<CAPTION>
                         DATE
                        CREATED                                                            DOMESTIC
                          OR        STATE/COUNTRY OF    PERCENT OF         NATURE OF          OR
 NAME OF SUBSIDIARY     ACQUIRED     INCORPORATION      OWNERSHIP          BUSINESS         FOREIGN
---------------------  ----------  ------------------  ------------- -------------------  ----------
<S>                    <C>         <C>                 <C>           <C>                  <C>
                                                                       Provides auction
                                                                     Services to sellers
Arlington Investment                                                    when selling
      Company           5/7/1998   State of Michigan       100%          automobiles        Domestic

                                                                        Finance Retail
Auto Funding America                                                     Installment
        Inc.           1/18/2000   State of Michigan       100%           Contracts         Domestic

                                                                        Finance Retail
Auto Funding America   7/26/2000    State of Nevada                      Installment        Foreign
   of Nevada Inc.      12/17/2003  State of Michigan       100%           Contracts         Domestic

                                                                          Accept the
                                                                      assignment of lease
 Auto Lease Services                                                   agreements from
         LLC            6/6/2000   State of Delaware       100%       automotive dealers    Foreign

   AutoNet Finance                                                    Lease contracts of
  Company.com, Inc.     6/2/1999   State of Michigan       100%         used vehicles       Domestic

                                                                       Administrator of
   Buyers Vehicle                                                      vehicle extended
Protection Plan, Inc.  6/18/1990   State of Michigan       100%       service contracts     Domestic

                                                         10%-CAC
                                                       Reinsurance,
                                                           Ltd.
                                                        90%-Credit
   CAC (TCI), Ltd.     7/16/2002     Turks & Caicos     Acceptance     Holding Company      Foreign

                                                                       Special purpose
                                                                      company limited to
                                                                     facilitating asset
 CAC Funding Corp.     6/23/1998    State of Nevada        100%      backed transactions    Foreign

  CAC International                                      100%-CAC
    Holdings, LLC       7/8/2002        Michigan        (TCI) Ltd.     Holding Company      Domestic

                                                                      Lease contracts on
  CAC Leasing, Inc.    4/29/1996   State of Michigan       100%         used vehicles       Domestic

   CAC Luxembourg                                        100%-CAC
       S.a.r.l         3/30/2001       Luxembourg        Scotland    Lending Institution    Foreign

                                                                         Specialized
                                                                        financing and
                                                         100%-CAC         receivable
CAC of Canada Company   3/20/1996         Canada          Scotland    management in Canada   Foreign
</TABLE>

                                       113

<PAGE>

<TABLE>
<S>                    <C>         <C>                 <C>           <C>                  <C>
                                                                       Special purpose
Credit Acceptance of                                                  company limited to
    Nevada, Inc.       1/25/1993    State of Nevada        100%      financing activities   Foreign

                                                                     Reinsurance company
                                    Turks and Caicos                    for collision
CAC Reinsurance, Ltd.  1/30/1997        Islands            100%           insurance         Foreign

                                                                          Investment
                                                                       Business-provide
                                                         90%-TCI     acquisition finance
                                                        10%- CAC    and working capital      Foreign
    CAC Scotland       3/23/2001        Scotland       International to companies in the   Partnership
                                                         Holdings         CAC Group

                                                                       Private Limited
   CAC UK Funding                                        100%-CAC          Company
       Limited         3/21/2001   England and Whales    Scotland    Lending Institution    Foreign

    CAC Warehouse
    Funding Corp.      9/10/2002         Nevada            100%          SPV Company        Foreign

    CAC Warehouse
 Funding Corporation
         II            9/25/2003         Nevada            100%          SPV Company        Foreign

                                                       100%-Credit
  Credit Acceptance                                     Acceptance
  Auto Dealer Loan                                       Funding
    Trust 2003-1        6/6/2003        Delaware        LLC-2003-1      Trust Company       Foreign

                                                       100%-Credit
  Credit Acceptance                                     Acceptance
  Auto Dealer Loan                                      Funding
    Trust 2004-1        8/11/2004      Delaware         LLC-2004-1       Trust Company      Foreign

  Credit Acceptance
 Funding LLC 2003-1     6/6/2003        Delaware           100%          SPV Company        Foreign

  Credit Acceptance
 Funding LLC 2004-1     8/9/2004        Delaware           100%          SPV Company        Foreign

                                                                         Specialized
                                                                        financing and
  Credit Acceptance                                                       receivable
 Corporation Ireland                                     100%-CAC       management in
       Limited         12/2/1996        Ireland          Scotland          Ireland          Foreign

  Credit Acceptance                                      90%-CAC       Special purpose
Corporation of South                 State of South      10%-CAC      company limited to
    Dakota, Inc.       10/13/1994        Dakota        Reinsurance   financing activities   Foreign

                                                                         Specialized
                                                                        financing and
  Credit Acceptance                                                       receivable
   Corporation UK                                        100%-CAC     management in the
       Limited          9/6/1994   England and Wales     Scotland            U.K.           Foreign

  Credit Acceptance
    Motors, Inc.       3/30/2005        Michigan           100%       Auto Dealership**     Domestic

                                                                       Provide on-line
                                                                       market place for
                                                                     its dealer partners
  Credit Acceptance                                                  to puchase products
  Wholesale Buyers                                                       from various
     Club, Inc.        12/3/2001   State of Michigan       100%            vendors.         Domestic

                                                                         Remarketing
                                                                       services for
 Vehicle Remarketing                                                   automobiles at
   Services, Inc.      5/21/1997   State of Michigan       100%            auctions         Domestic
</TABLE>

                                       114

<PAGE>

                                  SCHEDULE 6.6

                                      TAXES

None.

                                       115

<PAGE>

                                  SCHEDULE 6.12

                                   LITIGATION

      1. Marvin Fielder, Deborah Williams, Lucy Henderson, Jerome Henderson,
Kimberly R. Williams and Jerry Dau, Plaintiffs v. Credit Acceptance Corporation
and Northeast Auto Credit, Inc., Defendants, in the United States District Court
for the Western District of Missouri, Western Division. The Company is currently
a defendant in a class action proceeding commenced on October 15, 1996 in the
Circuit Court of Jackson County, Missouri and removed to the United States
District Court for the Western District of Missouri. The complaint seeks
unspecified money damages for alleged violations of a number of state and
federal consumer protection laws. On October 9, 1997, the District Court
certified two classes on the claims brought against the Company, one relating to
alleged overcharges of official fees, the other relating to alleged overcharges
of post-maturity interest. On August 4, 1998, the District Court granted partial
summary judgment on liability in favor of the plaintiffs on the interest
overcharge claims based upon the District Court's finding of certain violations
but denied summary judgment on certain other claims. The District Court also
entered a number of permanent injunctions, which among other things, restrained
the Company from collecting on certain class accounts. The Court also ruled in
favor of the Company on certain claims raised by class plaintiffs. Because the
entry of an injunction is immediately appealable, the Company appealed the
summary judgment order to the United States Court of Appeals for the Eighth
Circuit. Oral argument on the appeals was heard on April 19, 1999. On September
1, 1999, the United States Court of Appeals for the Eighth Circuit overturned
the August 4, 1998 partial summary judgment order and injunctions against the
Company. The Court of Appeals held that the District Court lacked jurisdiction
over the interest overcharge claims and directed the District Court to sever
those claims and remand them to state court. On February 18, 2000, the District
Court entered an order remanding the post-maturity interest class to the Circuit
Court of Jackson County, Missouri while retaining jurisdiction on the official
fee class. The Company then filed a motion requesting that the District Court
reconsider that portion of its order of August 4, 1998, in which the District
Court had denied the Company's motion for summary judgment on the federal
Truth-In-Lending Act ("TILA") claim. On May 26, 2000, the District Court entered
summary judgment in favor of the Company on the TILA claim and directed the
Clerk of the Court to remand the remaining state law official fee claims to the
appropriate state court. On September 18, 2001, the Circuit Court of Jackson
County, Missouri mailed an order assigning this matter to a judge. On October
28, 2002, the plaintiffs filed a fourth amended complaint. The Company filed a
motion to dismiss the plaintiff's fourth amended complaint on November 4, 2002.
On November 18, 2002, the Company filed a memorandum urging the decertification
of the classes. On February 21, 2003, the plaintiffs filed a brief opposing the
Company's November 4, 2002 motion to dismiss the case. On May 19, 2004, the
court released an order, dated January 9, 2004, that denied the Company's motion
to dismiss. On November 16, 2005 the Court issued an order that, among other
things, adopted the District Court's order certifying classes. The Company will
continue its vigorous defense of all remaining claims. However, an adverse
ultimate disposition of this litigation could have a material negative impact on
the Company's financial position, liquidity and results of operations.

                                       116

<PAGE>

      2. Due to the consumer-oriented nature of the industry in which the
Company operates, industry participants frequently are named as defendants in
litigation involving alleged violations of state, federal and foreign
truth-in-lending, credit availability, credit reporting, consumer protection,
warranty, debt collection, insurance and other consumer-oriented laws and
regulations, if applicable. Many of these cases are filed as purported class
actions and seek damages in large dollar amounts. Although the Company has been,
and is currently, involved in litigation of this type, the Company's experience
has been that such claims are often brought as counterclaims in response to
efforts by the Company to collect delinquent accounts and have not been
financially significant.

                                       117

<PAGE>

                                  SCHEDULE 6.17

                              COMPLIANCE WITH LAWS

None.

                                       118

<PAGE>

                                  SCHEDULE 8.5A

None.

                                       119

<PAGE>

                                  SCHEDULE 8.5B

                                 PERMITTED DEBT

       The Company is indebted to Agent in an amount which shall not be in
excess of $7,539,000 pursuant to a Continuing Collateral Mortgage, dated April
28, 1994, as amended, secured by a first lien on the Silver Triangle Building,
25505 West Twelve Mile Road, Southfield, Michigan.

                                       120

<PAGE>

                                  SCHEDULE 8.6

                                      LIENS

      The Company is indebted to Agent in the amount of $7,539,000 pursuant to a
Continuing Collateral Mortgage, dated April 28, 1994, as amended, secured by a
first lien on the Silver Triangle Building, 25505 West Twelve Mile Road,
Southfield, Michigan.

                                       121

<PAGE>

                                  SCHEDULE 8.8

                              PERMITTED INVESTMENTS

None.

                                       122

<PAGE>

                                  SCHEDULE 13.6

                                     NOTICES

For the Agent:

Metropolitan Loans F
One Detroit Center, 5th Floor
500 Woodward Avenue
Detroit, Michigan 48226
Fax No.: 313/222-5636
Telephone No.: 313/222-0236
Attention: Harve C. Light

with a copy not constituting notice to:

Bodman LLP

100 Renaissance Center, Suite 3300
Detroit, Michigan
Fax No.:  313/393-7579
Telephone No.: 313/393-7505
Attention:  Joseph J. Kochanek

For the Company:
Credit Acceptance Corporation
25505 W. 12 Mile Road, Suite 3000
Southfield, Michigan 48034
Fax No.: 248/827-8542
Telephone No.: 248/353-2700
Attention:  Douglas W. Busk

with a copy not constituting notice to:

Dykema Gossett PLLC
400 Renaissance Center
Detroit, Michigan 48243
Fax No.: 313/568-6832
Telephone No.: 313/568-5434
Attention:  Mark A. Metz

                                       123

<PAGE>

                                    EXHIBIT A

                               REQUEST FOR ADVANCE

No.____________________                      Dated:_____________________________

TO:      Comerica Bank ("Agent")

RE:      Fourth Amended and Restated Credit Acceptance Corporation Credit
         Agreement dated as of February ___, 2006 by and among Company, the
         Banks signatory thereto and Comerica Bank, as Agent (as amended,
         restated or otherwise modified from time to time, the "Credit
         Agreement") The Company pursuant to the Credit Agreement requests an
         Advance from Banks, as follows:

A.       Date of Advance:

B.       Credit facility under which Advance is requested:

         [ ] Revolving Credit

C.       [ ] (check if applicable)

         This Advance is or includes a whole or partial refunding/conversion of:

         Advance No(s). _____________________________________

D.       Type of Advance (check only one);

         [ ] Prime-based Advance
         [ ] Eurodollar-based Advance

E.       Amount of Advance:

         ____________________________________________

F.       Interest Period (not applicable to Prime-based Advances)

         ________ months (insert seven days, 1, 2, 3 or 6)

         Interest on each 1 month, 2 month and 3 month Eurodollar-based Advance
shall be payable on the last day of the Applicable Interest Period. Interest on
each 6 month Eurodollar-

                                       124

<PAGE>

based Advance shall be payable at intervals of 3 months after the first day of
the applicable Interest Period and also on the last day of the Interest Period
applicable thereto.

G.       Disbursement Instructions

         [ ] Comerica Bank Account No. _________________
         [ ]  Other: ___________________________________
                     ___________________________________

         The Company certifies to the matters specified in Section 2.3(f) or
Sections 3.2(a) through (e) of the Credit Agreement, as the case may be.

                                      * * *

                          Signatures on Following Page

                                       125

<PAGE>

      Capitalized terms used herein, except as defined to the contrary, have the
meanings given them in the Credit Agreement.

                          CREDIT ACCEPTANCE CORPORATION

                          By: __________________________________________________

                          Its: _________________________________________________

Agent Approval: _________

<PAGE>

                                    EXHIBIT B

                                   [RESERVED]

<PAGE>

                                    EXHIBIT C

                              REVOLVING CREDIT NOTE

                         (Credit Acceptance Corporation)

$_________________                                       ________________,______

      On or before the Revolving Credit Maturity Date, FOR VALUE RECEIVED,
Credit Acceptance Corporation, a Michigan corporation ("Company"), promises to
pay to the order of [insert Bank] ("Bank") at Detroit, Michigan, care of Agent,
for the account of Bank's Eurodollar Lending Office with respect to any
Eurodollar-based Advances hereunder, in lawful money of the United States of
America, the Indebtedness or so much of the sum of [Insert Amount derived from
Percentages] Dollars ($_________), as may from time to time have been advanced
and then be outstanding hereunder pursuant to the Fourth Amended and Restated
Credit Acceptance Corporation Credit Agreement dated as of February ___, 2006,
made by and among the Company and certain banks signatory thereto, including the
Bank, and Comerica Bank, as Agent for such banks, as the same may be amended or
otherwise modified from time to time (the "Agreement"), together with interest
thereon as hereinafter set forth.

      Each of the Advances made hereunder shall bear interest at the Applicable
Interest Rate from time to time applicable thereto under the Agreement or as
otherwise determined thereunder, and interest shall be computed, assessed and
payable as set forth in the Agreement.

      This Note is a note under which advances (including refundings and
conversions), repayments and readvances may be made from time to time, but only
in accordance with the terms and conditions of the Agreement. This Note
evidences borrowings under, is subject to, is secured in accordance with, and
may be accelerated or matured under, the terms of the Agreement, to which
reference is hereby made. Capitalized terms used herein, except as defined to
the contrary, shall have the meanings given them in the Agreement.

      This Note shall be interpreted and the rights of the parties hereunder
shall be determined under the laws of, and enforceable in, the State of
Michigan.

      Company hereby waives presentment for payment, demand, protest and notice
of dishonor and nonpayment of this Note and agrees that no obligation hereunder
shall be discharged by reason of any extension, indulgence, release, or
forbearance granted by any holder of this Note to any party now or hereafter
liable hereon or any present or subsequent owner of any property, real or
personal, which is now or hereafter security for this Note.

<PAGE>

      This note is given in [partial] replacement and renewal of the Revolving
Credit Note dated as of _____________________ previously issued by the Company
to Bank.]

      Nothing herein shall limit any right granted Bank by any other instrument
or by law.

                           CREDIT ACCEPTANCE CORPORATION

                           By: ___________________________________________

                           Its:___________________________________________

<PAGE>

                                    EXHIBIT D

                                   PERCENTAGES

<TABLE>
<CAPTION>
                BANKS                    COMMITMENT    PERCENTAGES
---------------------------------------  ------------  -----------
<S>                                      <C>           <C>
Comerica Bank                            $ 30,000,000  22.22222222%

Bank of America, N.A.                    $ 30,000,000  22.22222222%

LaSalle National Bank                    $ 20,000,000  14.81481481%

Harris, N.A.                             $ 20,000,000  14.81481481%

National City Bank of Michigan/Illinois  $ 20,000,000  14.81481481%

Fifth Third Bank                         $ 15,000,000   11.1111111%
                                         ------------  -----------
TOTAL                                    $135,000,000       100.00%
                                         ============  ===========
</TABLE>

<PAGE>

                                    EXHIBIT E

                                 SWING LINE NOTE

                         (Credit Acceptance Corporation)

$15,000,000                                                   ___________, _____

      On or before the Revolving Credit Maturity Date, FOR VALUE RECEIVED,
Credit Acceptance Corporation, a Michigan corporation ("Company"), promises to
pay to the order of Comerica Bank ("Bank") at Detroit, Michigan, for the account
of Bank's Eurodollar Lending Office with respect to any Eurodollar-based
Advances hereunder, in lawful money of the United States of America, so much of
the sum of Fifteen Million Dollars ($15,000,000), as may from time to time have
been advanced and then be outstanding hereunder pursuant to the Fourth Amended
and Restated Credit Acceptance Corporation Credit Agreement dated as of February
___, 2006, made by and among the Company and certain banks signatory thereto,
including the Bank, in its individual capacity and as Agent for such banks, as
the same may be amended or otherwise modified from time to time (the
"Agreement"), together with interest thereon as hereinafter set forth.

      Each of the Advances made hereunder shall bear interest at the Applicable
Interest Rate from time to time applicable thereto under the Agreement or as
otherwise determined thereunder, and interest shall be computed, assessed and
payable as set forth in the Agreement.

      This Note is a note under which advances (including refundings and
conversions), repayments and readvances may be made from time to time, but only
in accordance with the terms and conditions of the Agreement. This Note
evidences borrowings under, is subject to, is secured in accordance with, and
may be accelerated or matured under, the terms of the Agreement, to which
reference is hereby made. Capitalized terms used herein, except as defined to
the contrary, shall have the meanings given them in the Agreement.

      This Note shall be interpreted and the rights of the parties shall be
determined under the laws of, and enforceable in, the State of Michigan.

      Company hereby waives presentment for payment, demand, protest and notice
of dishonor and nonpayment of this Note and agrees that no obligation hereunder
shall be discharged by reason of any extension, indulgence, release, or
forbearance granted by any holder of this Note to any party now or hereafter
liable hereon or any present or subsequent owner of any property, real or
personal, which is now or hereafter security for this Note.

      [This note is given in [partial] replacement and renewal of the Swing Line
Note dated as of _____________ _____ previously issued by the Company to Bank.]

<PAGE>

      Nothing herein shall limit any right granted Bank by any other instrument
or by law.

                           CREDIT ACCEPTANCE CORPORATION

                           By:_____________________________________________

                           Its:____________________________________________

<PAGE>

                                    EXHIBIT F

                         REQUEST FOR SWING LINE ADVANCE

No.____________________                             Dated:___________________

TO:      Comerica Bank ("Swing Line Bank")

RE:      Fourth Amended and Restated Credit Acceptance Corporation Credit
         Agreement dated as of February ___, 2006 by and among Company, the
         Banks signatory thereto and Comerica Bank, as Agent (as amended,
         restated or otherwise modified from time to time, the "Credit
         Agreement")

         The Company pursuant to the Credit Agreement requests an Advance from
the Swing Line Bank as follows:

A.       Date of Advance:

B.       [ ](check if applicable)

         This Advance is or includes a whole or partial refund/conversion of:

         Advance No(s).____________________________

C.       Type of Advance (check only one);

         [ ] Prime-based Advance
         [ ] Eurodollar-based Advance
         [ ] Quoted Rate Advance

D.       Amount of Advance:

         ___________________________________

E.       Interest Period (not applicable to Prime-based Advances)

         [ ] One month
         [ ] Other _____________________

F.       Disbursement Instructions

         [ ] Comerica Bank Account No. _____________________________________

<PAGE>

         [ ] Other: ___________________________________________________

             __________________________________________________________

         The Company certifies that, as of the date of this Request:

            (A) both before and after such Swing Line Advance, the obligations
of the Company set forth in this Agreement and the Loan Documents, are valid,
binding and enforceable obligations of the Company.

            (B) all conditions to the making of Swing Line Advances have been
satisfied (both before and after giving effect to such Advance);

            (C) both before and after the making of such Swing Line advance,
there is no Default or Event of Default in existence; and

            (D) both before and after such Swing Line Advance, the
representations and warranties contained in this Agreement and the other Loan
Documents are true and correct in all material respects.

         Capitalized terms used herein, except as defined to the contrary,
have the meanings given them in the Credit Agreement.

                          CREDIT ACCEPTANCE CORPORATION

                          By:_________________________________________

                          Its:________________________________________

<PAGE>

                                    EXHIBIT G

                                     FORM OF

                              ASSIGNMENT AGREEMENT

                                                                 Date:__________

To:   CREDIT ACCEPTANCE CORPORATION

            and

      COMERICA BANK ("Agent")

            Re:   Fourth Amended and Restated Credit Acceptance Corporation
                  Credit Agreement dated as of February ___, 2006 by and among
                  Company, the Banks signatory thereto and Comerica Bank, as
                  Agent (as amended, restated or otherwise modified from time to
                  time, the "Credit Agreement")

Ladies and Gentlemen:

      Reference is made to Sections 13.8(c), (d) and (e) of the Credit
Agreement. Unless otherwise defined herein or the context otherwise requires,
all initially capitalized terms used herein without definition shall have the
meanings specified in the Credit Agreement.

      This Agreement constitutes notice to each of you of the proposed
assignment and delegation by [insert assignor Bank] (the "Assignor") to [insert
proposed assignee] (the "Assignee"), and the Assignor hereby sells and assigns
to the Assignee, and the Assignee hereby purchases and assumes from the
Assignor, a ______________% undivided interest in each of Assignor's rights and
obligations under the Credit Agreement and the other Loan Documents such that,
after giving effect to the foregoing assignment and assumption, the Assignee's
interest in the [Revolving Credit (and participations in any outstanding Letters
of Credit)] shall equal $ _____________ and $_________ respectively and the
Assignee's Percentage shall equal ____%.

      Assignor does hereby sell, assign and transfer to Assignee effective on
the "Effective Date" (as hereafter defined) _____% of Assignor's right, title
and interest in, to and under the Assignor's Notes, the Agreement and the other
Loan Documents. It is acknowledged that Assignor, immediately after this
Assignment, shall hold a _____ percentage (_____%) interest in each of
Assignor's Notes.

      The Assignor hereby instructs the Agent to make all payments from and
including the Effective Date hereof in respect of the interest assigned hereby,
directly to the Assignee. The Assignor and the Assignee agree that all interest
and fees accrued up to, but not including, the Effective Date of the assignment
and delegation being made hereby are the property of the Assignor, and not the
Assignee. The Assignee agrees that, upon receipt of any such interest or fees
accrued up to the Effective Date, the Assignee will promptly remit the same to
the Assignor.

<PAGE>

      The Assignee hereby confirms that it has received a copy of the Credit
Agreement and the exhibits and schedules referred to therein, and all other Loan
Documents which it considers necessary, together with copies of the other
documents which were required to be delivered under the Credit Agreement as a
condition to the making of the loans thereunder. The Assignee acknowledges and
agrees that it: (a) has made and will continue to make such inquiries and has
taken and will take such care on its own behalf as would have been the case had
its Percentage been granted and its loans been made directly by such Assignee to
the Company without the intervention of the Agent, the Assignor or any other
Bank; and (b) has made and will continue to make, independently and without
reliance upon the Agent, the Assignor or any other Bank, and based on such
documents and information as it has deemed appropriate, its own credit analysis
and decisions relating to the Credit Agreement. The Assignee further
acknowledges and agrees that neither the Agent, nor the Assignor has made any
representations or warranties about the creditworthiness of the Company or any
other party to the Credit Agreement or any other of the Loan Documents, or with
respect to the legality, validity, sufficiency or enforceability of the Credit
Agreement, or any other of the Loan Documents. This assignment shall be made
without recourse to or warranty by the Assignor, except as set forth herein.

      Assignee represents and warrants that it is a Person to which assignments
are permitted pursuant to Section 13.8(c) of the Credit Agreement.

      Except as otherwise provided in the Credit Agreement, effective as of the
Effective Date:

      (a) the Assignee: (i) shall be deemed automatically to have become a party
      to the Credit Agreement and the other Loan Documents, to have assumed all
      of the Assignor's obligations thereunder to the extent of the Assignee's
      percentage referred to in the second paragraph of this Assignment
      Agreement, and to have all the rights and obligations of a party to the
      Credit Agreement and the other Loan Documents, as if it were an original
      signatory thereto to the extent specified in the second paragraph hereof;
      and (ii) agrees to be bound by the terms and conditions set forth in the
      Credit Agreement and the other Loan Documents as if it were an original
      signatory thereto; and

      (b) the Assignor's obligations under the Credit Agreement and the other
      Loan Documents shall be reduced by the Percentage referred to in the
      second paragraph of this Assignment Agreement.

      As used herein, the term "Effective Date" means the date on which all of
the following have occurred or have been completed, as reasonably determined by
the Agent:

      (1)   the delivery to the Agent of an original of this Assignment
            Agreement executed by the Assignor and the Assignee;

      (2)   the payment to the Agent, of all accrued fees, expenses and other
            items for which reimbursement is then owing under the Credit
            Agreement;

      (3)   the payment to the Agent of the $3,500.00 processing fee referred to
            in Section 13.8(d) (v) of the Credit Agreement; and

<PAGE>

      (4)   all other restrictions and items noted in Sections 13.8(c), (d) and
            (e) of the Credit Agreement have been completed.

The Agent shall notify the Assignor and the Assignee, along with Company of the
Effective Date.

      The Assignee hereby advises each of you of the following administrative
details with respect to the assigned loans:

            (A)   Address for Notices:

                  Institution Name:

                  Address:

                  Attention:

                  Telephone:

                  Facsimile:

            (B)   Payment Instructions:

            (C)   Proposed effective date of assignment.

      The Assignee has delivered to the Agent (or is delivering to the Agent
concurrently herewith) the tax forms referred to in Section 13.14 of the Credit
Agreement, and other forms reasonably requested by the Agent. The Assignor has
delivered to the Agent (or is delivering to Agent concurrently herewith), the
original of each Note held by the Assignor under the Credit Agreement.

                                      * * *

                      Signatures Follow on Succeeding Pages

<PAGE>

      Please evidence your consent to and acceptance of the proposed assignment
and delegation set forth herein by signing and returning counterparts hereof to
the Assignor and the Assignee.

                                   [ASSIGNOR]

                                   By:__________________________________________

                                   Its:_________________________________________

                                   [ASSIGNEE]

                                   By:__________________________________________

                                   Its:_________________________________________

ACCEPTED AND CONSENTED TO
this______day of___________, 200__

COMERICA BANK, Agent

By:_____________________________

Its:____________________________

CREDIT ACCEPTANCE CORPORATION

By:_____________________________

Its:____________________________

<PAGE>

[This form of Assignment Agreement (including footnotes) is subject in all
respects to the terms and conditions of the Credit Agreement which shall govern
in the event of any inconsistencies or omissions.]

<PAGE>

                                    EXHIBIT H

                           COVENANT COMPLIANCE REPORT

To:   Comerica Bank, as Agent

            Re:   Fourth Amended and Restated Credit Acceptance Corporation
                  Credit Agreement dated as of February ___, 2006 by and among
                  Company, the Banks signatory thereto and Comerica Bank, as
                  Agent (as amended, restated or otherwise modified from time to
                  time, the "Credit Agreement")

      This Covenant Compliance Report ("Report") is furnished pursuant to
Section 7.3 of the Agreement and sets forth various information as __________of
, 200___ (the "Computation Date").

      1. CONSOLIDATED ASSETS COVERAGE RATIO. On the Computation Date, the
Consolidated Assets Coverage Ratio, which requires Consolidated Net Assets to be
at a level greater than or equal to Consolidated Funded Debt, was $______ to
$______, as computed in the supporting documents attached hereto as Schedule 1.

      2. CONSOLIDATED FUNDED DEBT RATIO LEVEL. On the Computation Date the
Consolidated Funded Debt Ratio which is the Ratio of Consolidated Funded Debt to
Company's Consolidated Tangible Net Worth and which is required to be equal to
or less than 3.0 to 1.0 was _____ to 1.0 as computed in the supporting documents
attached hereto as Schedule 2.

      3. CONSOLIDATED TANGIBLE NET WORTH. On the Computation Date, the
Consolidated Tangible Net Worth, which is required to be not less than Two
Hundred Seventy-Nine Million Dollars ($279,000,000.00), plus the sum of (i)
eighty percent (80%) of Consolidated Net Income for each fiscal quarter of the
Company (A) beginning on or after October 1, 2005, (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, and MINUS the lesser of (x) One Hundred Ninety-Nine Million Dollars
($199,000,000) and (y) the aggregate amount of Permitted Repurchases and
Permitted Dividends paid to holders of the Company's capital stock to the
applicable date of determination on a cumulative basis on or after October 1,
2005 was $______, as computed in the supporting documents attached hereto as
Schedule 3.

      4. CONSOLIDATED FIXED CHARGE COVERAGE RATIO. On the Computation Date, the
Consolidated Fixed Charge Coverage Ratio, which is required to be not less than
2.75 to 1.0, unless the remaining maturity of the Revolving Credit shall be less
than 366 days, in which case such ratio shall be maintained at not less than
3.50 to 1.00, was ________ to 1.0 as computed in the supporting documents
attached hereto as Schedule 4.

      The undersigned officer of Company hereby certifies that:

<PAGE>

      A. To the best of the undersigned officer's knowledge, all of the
information set forth in this Report (and in any Schedule attached hereto) is
true and correct in all material respects.

      B. To the best of the undersigned officer's knowledge, as of the
Computation Date, the Company has observed and performed all of its covenants
and other agreements contained in the Credit Agreement and in the Notes and any
other Loan Documents to be observed, performed and satisfied by it.

      C. I have reviewed the Agreement and this Report is based on an
examination sufficient to assure that this Report is accurate.

      D. To the best of the undersigned officer's knowledge, except as stated in
Schedule 5 hereto (which shall describe any existing Default or Event of Default
and the notice and period of existence thereof and any action taken with respect
thereto or contemplated to be taken by Borrowers), no Default or Event of
Default has occurred and is continuing on the date of this Report.

      Capitalized terms used in this Report and in the Schedules hereto, unless
specifically defined to the contrary, have the meanings given to them in the
Credit Agreement.

      IN WITNESS WHEREOF, Company has caused this Report to be executed and
delivered by its duly authorized officer this ______ day of __________________,
____.

                                     CREDIT ACCEPTANCE CORPORATION

                                     By:________________________________________

                                     Its:_______________________________________

<PAGE>

                                    EXHIBIT I

                             LETTER OF CREDIT NOTICE

TO:   Members of the Bank Group

            RE:   Issuance of Letter of Credit pursuant to Article 3 of the
                  Fourth Amended and Restated Credit Acceptance Corporation
                  Credit Agreement dated as of February ___, 2006 by and among
                  Company, the Banks signatory thereto and Comerica Bank, as
                  Agent (as amended, restated or otherwise modified from time to
                  time, the "Credit Agreement").

      On ________________ , 20__,(1) Agent, in accordance with Article 3 of the
Agreement, issued its Letter of Credit number____________ , in favor of
_________(2) for the account of [ ].(3) The face amount of
____________________________________ ____________________________ such Letter of
Credit is $. . The amount of each Bank's participation in such Letter of Credit
is as follows:(4)

      ____________[Bank]             $____________
      ____________[Bank]             $____________
      ____________[Bank]             $____________
      ____________[Bank]             $____________
      ____________[Bank]             $____________
      ____________[Bank]             $____________

         This notification is delivered this _____ day of ____________, 20___ ,
pursuant to Section 3.3 of the Credit Agreement. Except as otherwise defined,
capitalized terms used herein have the meanings given them in the Credit
Agreement.

                                     Signed:

                                     COMERICA BANK

                                     By:________________________________________

                                     Its:_______________________________________

----
(1) Date of Issuance

(2) Beneficiary

(3) Account Party

(4) Amounts based on Percentages

[This form of Letter of Credit Notice (including footnotes) is subject in all
respects to the terms and conditions of the Credit Agreement which shall govern
in the event of any inconsistencies or omissions.]

<PAGE>

                                    EXHIBIT J

                                   [RESERVED]

<PAGE>

                                    EXHIBIT K

                                   [RESERVED]

<PAGE>

                                    EXHIBIT L

                                   [RESERVED]

<PAGE>

                                    EXHIBIT M

                            FORM OF NEW BANK ADDENDUM

      NEW BANK ADDENDUM, dated_____________________, to the Fourth Amended and
Restated Credit Acceptance Corporation Credit Agreement dated as of February
___, 2006 (as otherwise amended, restated or modified from time to time, the
"Credit Agreement"), by and among Credit Acceptance Corporation ("Company"),
each of the financial institutions parties thereto (collectively, the "Banks")
and Comerica Bank, as Agent for the Banks.

                              W I T N E S S E T H:

      WHEREAS, the Credit Agreement provides in Section 2.17 thereof that a
financial institution, although not originally a party thereto, may become a
party to the Credit Agreement with the consent of the Company and the Agent by
executing and delivering to the Agent a New Bank Addendum to the Credit
Agreement in substantially the form of this new bank addendum; and

      WHEREAS, the undersigned New Bank was not an original party to the Credit
Agreement but now desires to become a party thereto;

      NOW, THEREFORE, the New Bank hereby agrees as follows:

      The New Bank hereby confirms that it has received a copy of the Credit
Agreement and the exhibits and schedules referred to therein, and all other Loan
Documents which it considers necessary, together with copies of the other
documents which were required to be delivered under the Credit Agreement as a
condition to the making of the loans thereunder. The New Bank acknowledges and
agrees that it: (a) has made and will continue to make such inquiries and has
taken and will take such care on its own behalf as would have been the case had
its commitment been granted and its loans been made directly by such New Bank to
the Company without the intervention of the Agent or any other Bank; and (b) has
made and will continue to make, independently and without reliance upon the
Agent or any other Bank, and based on such documents and information as it has
deemed appropriate, its own credit analysis and decisions relating to the Credit
Agreement. The New Bank further acknowledges and agrees that the Agent has not
made any representations or warranties about the creditworthiness of the Company
or any other party to the Credit Agreement or any other of the Loan Documents,
or with respect to the legality, validity, sufficiency or enforceability of the
Credit Agreement, or any other of the Loan Documents.

      New Bank represents and warrants that it is a Person to which assignments
are permitted pursuant to Sections 13.8(c) and (d) of the Credit Agreement.

<PAGE>

      Except as otherwise provided in the Credit Agreement, effective as of the
Effective Date (as defined below):

      (a)   the New Bank (i) shall be deemed automatically to have become a
            party to the Credit Agreement and the other Loan Documents, and to
            have all the rights and obligations of a party to the Credit
            Agreement and the other Loan Documents, as if it were an original
            signatory; and (ii) agrees to be bound by the terms and conditions
            set forth in the Credit Agreement and the other Loan Documents as if
            it were an original signatory thereto; and

      (b)   the New Bank shall be a Bank and its Percentage of the [Revolving
            Credit (and its risk participation in Letters of Credit)] shall be
            as set forth in the attached revised Exhibit D (Percentages);
            provided any fees paid prior to the Effective Date, including any
            Letter of Credit Fees, shall not be recalculated, redistributed or
            reallocated by Company, Agent or the Banks.

      As used herein, the term "Effective Date" means the date on which all of
the following have occurred or have been completed, as reasonably determined by
the Agent:

      (1)   the Company shall have paid to the Agent all interest, fees
            (including the Revolving Credit Facility Fee) and other amounts, if
            any, accrued to the Effective Date for which reimbursement is then
            owing under the Credit Agreement;

      (2)   New Bank shall have remitted to the Agent funds in an amount equal
            to its Percentage of all Advances of the Revolving Credit
            outstanding as of the Effective Date; and

      (3)   the Company shall have executed and delivered to the Agent for the
            New Bank, new Revolving Credit Notes payable to such New Bank in the
            face amount of such New Bank's Percentage of the Revolving Credit
            Maximum Amount (after giving effect to this New Bank Addendum, and
            any other New Bank Addendum executed concurrently herewith).

      The Agent shall notify the New Bank, along with Company, of the Effective
Date. The New Bank shall deliver herewith to the Agent administrative details
with respect to the funding and distribution of Advances (and Letters of Credit)
as requested by Agent.

      Terms defined in the Credit Agreement and not otherwise defined herein
shall have their defined meanings when used herein.

<PAGE>

      IN WITNESS WHEREOF, the undersigned has caused this New Bank Addendum to
be executed and delivered by a duly authorized officer on the date first above
written.

                                     [INSERT NAME OF BANK]

                                     By:________________________________________
                                           Title:

Accepted this ___________ day of
__________________,________________.

CREDIT ACCEPTANCE CORPORATION

By:________________________________
      Title:

Accepted this ____________day of
____________________,_____________.

COMERICA BANK, as Agent

By:________________________________
      Title:

<PAGE>

                                    EXHIBIT N

                            FORM OF INTERCOMPANY NOTE

                                INTERCOMPANY NOTE

                         COMPANY OR GUARANTOR, AS MAKER

                                                 __________________,___________.

      ON DEMAND, FOR VALUE RECEIVED, the undersigned ("MAKER") promises to pay
to the order of the entity or entities appearing on Schedule 1 hereto from which
it has received advances of credit ("Holder") such place as shall be designated
from time to time by each such Holder to Maker, in lawful money of the United
States of America or in such other currencies applicable to any particular
advance made hereunder (each an "Advance" and, collectively, the "Advances")
which may, from time to time, be outstanding hereunder, such sum as may from
time to time have been advanced by Holder to Maker and then be outstanding
hereunder, together with interest thereon as hereinafter set forth.

      Each Advance may bear interest at Holder's cost of borrowing as certified
by Holder from time to time and in accordance with the Holder's customary
practices.

      This Note is a note under which advances, repayments and readvances may be
made from time to time.

      This Note shall be fully subordinated in all respects to the Indebtedness
(as defined in the Credit Agreement). Upon the occurrence and during the
continuance of an Event of Default under that certain Fourth Amended and
Restated Credit Acceptance Corporation Credit Agreement dated as of February
___, 2006 (as amended, restated or otherwise modified from time to time, the
"Credit Agreement") by and among the Company, the Banks which are named in and
from time to time signatories thereto (the "Banks") and Comerica Bank, as Agent
(the "Agent"), and following receipt of notice from the Agent, no payments may
be made of the principal of or interest on this Note, it being understood that
nothing in this Note shall be construed to prevent, limit or restrict the
payment of principal or interest under this Note at any other time.

      As used herein, "Senior Creditors" shall refer to the Banks and the
holders of Future Debt and "Senior Indebtedness" shall refer to the Indebtedness
under the Credit Agreement and the Future Debt.

      During the period when payments of interest hereon are not permitted by
the second preceding paragraph, interest shall accrue and be added to principal
on each interest payment date.

      Maker agrees, and Holder by accepting this Note agrees, that: (A) the
obligations evidenced by this Note are subordinated in right of payment, to the
prior payment in full of all

<PAGE>

the Senior Indebtedness; the subordination is for the benefit of the Senior
Creditors, and each Senior Creditor whether now outstanding or hereafter
created, incurred, assumed or guaranteed shall be deemed to have acquired
Indebtedness in reliance upon the covenants and provisions contained in this
Note; (B) if Maker is prohibited by the terms of this Note from making any
payment of principal, interest or any other sum under or in respect of this Note
when due, and therefore the Maker shall fail to pay when due any such sum, such
failure shall not constitute a default or event of default under and in respect
of this Note (provided that interest shall continue to accrue as provided herein
and be added to principal as herein set forth); and (C) no revision to any
provision of this Note applicable or relevant to the subordination of this Note
to the Senior Indebtedness shall be made or become effective until approved in
writing by the Agent.

      Upon any distribution (whether cash, securities or other property, by
setoff or otherwise) to creditors of Maker in a liquidation or dissolution of
Maker or in a bankruptcy, reorganization, insolvency, receivership or similar
proceeding relating to Maker or its property: (A) Senior Creditors shall be
entitled to payment in full of all obligations with respect to the Senior
Indebtedness (including interest after the commencement of any such proceeding
at the rates specified for the applicable Indebtedness) to the date of payment
of the Indebtedness before Holder shall be entitled to receive any payment of
any obligations with respect to this Note; and (B) until all obligations with
respect to the Senior Indebtedness are paid in full, any distribution to which
Holder would be entitled shall be made to Senior Creditors as their interests
may appear.

      No right of any Senior Creditor to enforce the subordination of the
indebtedness evidenced by this Note shall be impaired by any act or failure to
act by the Maker or by its failure to comply with the terms and conditions of
this Note.

      This Note shall be interpreted and the rights of the parties hereunder
shall be determined under the laws of, and enforceable in, the State of
Michigan.

      Maker hereby waives presentment for payment, demand, protest and notice of
dishonor and nonpayment of this Note and agrees that no obligation hereunder
shall be discharged by reason of any extension, indulgence, release, or
forbearance granted by any holder of this Note to any party now or hereafter
liable hereon or any present or subsequent owner of any property, real or
personal, which is now or hereafter security for this Note.

      Terms not defined herein shall have the meanings set forth in the Credit
Agreement.

<PAGE>

      Nothing herein shall limit any right granted Holder by any other
instrument or by law.

                                     [Company or Guarantor]

                                     By: _______________________________________

                                     Its:_______________________________________

Dated: _____________, _____

                                     Pay to the order of Comerica Bank, as Agent

                                     By: [Holder of Note]

                                     By:________________________________________

                                     Its:_______________________________________

<PAGE>

                                    EXHIBIT O

                           BORROWING BASE CERTIFICATE

================================================================================

This certificate submitted for the __________ [quarter or month] ending
_____________, as follows:

      (A)     Dealer Loans(1)                 $___________

              times Advance Rate (75%)(2)     $___________

      (B)     Purchased Contract-Balance(1)   $___________

              times Advance Rate (75%)(3)     $___________  (cannot exceed 25%
                                                            of the aggregate
                                                            Borrowing Base
                                                            Limitation).

              Total (A PLUS B)                              $__________

              MINUS:

      (C)     Hedging Reserve(4) (see attached              $__________
              breakdown)

              MINUS

      (D)     Other Debt Secured by the Collateral
              (excluding Indebtedness under Credit
              Agreement)(5)

              (1) Future Debt                         $[0]

              Subtotal                                      $__________

              Borrowing Base Limitation                     $__________

         The undersigned authorized officer certifies the matters contained in
this Borrowing Base Certificate as correct, accurate and complete as of the date
set forth below.

                                              CREDIT ACCEPTANCE CORPORATION

                                              By:_______________________________

                                              Its:______________________________

                                              Date:_____________________________

----------
(1)   Calculated as of the most recent quarter end for regular quarterly
      certificates and as of the most recent month end for which financial
      information is available for all other certificates.

(2)   Subject to reduction under definition of Borrowing Base Limitation.

(3)   Subject to reduction under definition of Borrowing Base Limitation.

(4)   Calculated as of the most recent quarter end, and with disclosure of
      additional Hedging Agreements not included in calculation. Adequacy of
      reserve subject to review and approval of Majority Banks and affected
      Banks, upon request.

(5)   These amounts calculated as of the date of the certificate set forth in
      the signature block.

<PAGE>

                                              Its:______________________________

                                              Date:_____________________________

<PAGE>

                    ATTACHMENT TO BORROWING BASE CERTIFICATE

                          (Breakdown of Hedging Reserve

            for _______________ [month or quarter] ending __________)

A.    HEDGING RESERVE AS ALLOCATED TO BANKS OR AFFILIATES BY CREDIT ACCEPTANCE
      CORPORATION AS OF MOST RECENT QUARTER END:

1.    Bank (or Affiliate)  _______________  $__________
2.    Bank (or Affiliate)  _______________  $__________
3.    Bank (or Affiliate)  _______________  $__________
      Subtotal                                    $__________
      Maximum: Hedging Reserve Cannot Exceed $1,000,000             $__________

B.    HEDGING AGREEMENTS NOT INCLUDED IN HEDGING RESERVE CALCULATION (ENTERED
      INTO AFTER MOST RECENT QUARTER END):

1.    Bank (or affiliate) _______________  ___________________________________
                                           ___________________________________

2.    Bank (or affiliate) _______________  ___________________________________
                                           ___________________________________

3.    Bank (or affiliate) _______________  ___________________________________
                                           ___________________________________

                                           [Brief description, including date,
                                            nature of instrument, etc.]

<PAGE>

                                    EXHIBIT P

                                   [RESERVED]

<PAGE>

                                    EXHIBIT Q

                                   [RESERVED]

<PAGE>

                                    EXHIBIT R

                                  RESTRUCTURING

                                 [See Attached]

                          CREDIT ACCEPTANCE CORPORATION
                           INTERNATIONAL LOSS PLANNING
                                AND RESTRUCTURING

PRESENTLY, CAC'S FOREIGN ENTITIES' OWNERSHIP IS AS FOLLOWS:

                             [ORGANIZATIONAL CHART]

UNDER THE CURRENT STRUCTURE, CAC SCOTLAND HAS ELECTED TO BE TREATED AS A
CORPORATION FOR US INCOME TAX PURPOSES. BECAUSE CAC SCOTLAND IS FOREIGN AND A
CORPORATION, IT IS CONSIDERED A CONTROLLED FOREIGN CORPORATION (CFC) BY THE IRS.
ANY CURRENT INCOME OR LOSS OF CFCS IS NOT INCLUDED IN THE PARENT COMPANY'S US
TAX RETURN. HOWEVER, IF CASH IS REMITTED TO THE US, THE US COMPANY IS TAXED ON
THAT CASH TO THE EXTENT OF ACCUMULATED EARNINGS (E&P) IN THE CFC AND IS ALLOWED
A FOREIGN TAX CREDIT FOR TAXES PAID IN THE FOREIGN JURISDICTION. ANY CUMULATIVE
LOSSES GENERATED IN A CFC ARE TRAPPED AND NEVER MAKE THEIR WAY INTO THE US
RETURN.

DUE TO THE DECISION IN JUNE 2003 TO NO LONGER ORIGINATE BUSINESS IN THE UK, IT
WAS PROJECTED THAT THE LIQUIDATION OF THAT BUSINESS SEGMENT WOULD PRODUCE FUTURE
OPERATING LOSSES IN THE UK. CURRENTLY THE UK HAS REMITTED CASH TO THE US IN
EXCESS OF ITS ACCUMULATED EARNINGS AND THEREFORE, WOULD GENERATE A CUMULATIVE
OPERATING LOSS FOR THE REMAINDER OF THE LIQUIDATION AT CURRENT PROJECTIONS.

DELOITTE AND TOUCHE HAS PROPOSED AN INTERNATIONAL RESTRUCTURING WHICH WOULD
ALLOW THE LOSSES GENERATED IN THE UK, IF ANY, TO BE UTILIZED IN THE US. AS A
PART OF THIS RESTRUCTURING, CAC (TCI), LTD. WILL TRANSFER OWNERSHIP OF ALL OF
THE GROUP'S FOREIGN SUBSIDIARIES TO CREDIT ACCEPTANCE CORPORATION OF SOUTH
DAKOTA, INC. (CAC SD) AND WILL THEN LIQUIDATE FINAL OWNERSHIP WILL BE AS SHOWN
BELOW:

                         [REVISED ORGANIZATIONAL CHART]

AFTER THE MOVEMENT OF THE INTERNATIONAL OPERATIONS, A CHECK-THE-BOX ELECTION
WILL BE MADE ON CAC SCOTLAND FOR US TAX PURPOSES. THIS ELECTION WILL CHANGE CAC
SCOTLAND FROM A CFC TO A BRANCH OF CAC SD, ALLOWING ALL INCOME OR LOSS OF CAC
SCOTLAND TO FLOW INTO CAC SD, A MEMBER OF THE US CONSOLIDATED RETURN, FOR US TAX
PURPOSES.

ANY LOSSES GENERATED IN THE UK WILL THEN BE UTILIZABLE IN THE US AND WILL
GENERATE A TAX BENEFIT OF APPROXIMATELY 36.3% OF THOSE LOSSES.<PAGE>
                                                                  EXECUTION COPY

                  THIRD AMENDED AND RESTATED SECURITY AGREEMENT

      THIS THIRD AMENDED AND RESTATED SECURITY AGREEMENT (the "Agreement") dated
as of February 7, 2006, is entered into by and between Credit Acceptance
Corporation, a Michigan corporation (the "Company"), the Subsidiaries of the
Company from time to time parties hereto (collectively, with the Company, and
either or any of them, the "Debtors" and individually, each a "Debtor") and
Comerica Bank, a Michigan banking corporation ("Comerica"), as agent for the
benefit of the "Lenders" and the "Future Debt Holders" (each as referred to
below) (in such capacity, the "Collateral Agent"). The addresses for the Debtors
and Collateral Agent are set forth on the signature pages.

                                    RECITALS

      A. The Company, Comerica (individually, and in the capacities referred to
below) and the other financial institutions signatory thereto, each as "Banks"
thereunder (and, in the case of Comerica, in its capacity as Agent for the
Lenders and in its separate additional capacities as "Issuing Bank" thereunder)
(together with any Successor Lenders (as hereinafter defined) party thereto from
time to time, collectively the "Lenders"), entered into that certain Fourth
Amended and Restated Credit Agreement dated as of February 7, 2006 (amending and
restating the Prior Credit Agreement), (said credit agreement, as further
amended, restated or otherwise modified from time to time, the "Credit
Agreement").

      B. Each of the Debtors (other than the Company) have guaranteed payment
and performance of the obligations of the Company under the Credit Agreement
(pursuant to the Domestic Guaranty, the obligations of each such Debtor
thereunder constituting additional Credit Obligations) and will be required to
guarantee the payment and performance of the Company under the Future Debt
Documents (and such guaranties, when executed and delivered, will constitute
additional Future Debt Obligations).

      C. Pursuant to the Credit Agreement (and under the Prior Credit
Agreement), the Lenders have required that the Debtors grant (or cause to be
granted) certain liens and security interests to Comerica, as agent for the
benefit of the Lenders and the Future Debt Holders, all to secure the
obligations of the Company under the Credit Documents and the obligations of the
Company under the Future Debt Documents.

      D. The Lenders have consented to the transactions contemplated hereby, and
by the Security Documents, and the Lenders have agreed that the Debtors'
obligations under the Credit Documents and the Future Debt Documents (as defined
below) shall be equally and ratably secured pursuant to this Agreement and the
other Security Documents.

      E. The Debtors have directly and indirectly benefited and will directly
and indirectly benefit from the transactions evidenced by and contemplated in
the Credit Agreement and other Credit Documents and the Future Debt Documents
(defined below) and consented to the execution and delivery of that certain
Intercreditor Agreement among Comerica, as Collateral

<PAGE>

Agent, the Lenders (including Comerica), certain other parties no longer
providing financing to the Company (referred to therein as the Noteholders) and,
upon the issuance of Future Debt, the Future Debt Holders, dated as of December
15, 1998, as amended by First Amendment to Intercreditor Agreement dated as of
March 30, 2001 and Second Amendment to Intercreditor Agreement dated as of June
10, 2002 (as so amended, and as further amended, restated or otherwise modified
from time to time according to the terms thereof, the "Intercreditor
Agreement").

      F. The Lenders and the Collateral Agent have entered into the
Intercreditor Agreement (and, if applicable, the Future Debt Holders shall enter
into the Intercreditor Agreement) to define the rights, duties, authority and
responsibilities of the Collateral Agent, acting on behalf of such parties
regarding the Collateral (as defined below), and the relationship among the
parties regarding their equal and ratable interests in the Collateral.

      NOW, THEREFORE, in consideration of the premises and for other good and
valuable consideration, the adequacy, receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:

                                   ARTICLE I
                                  DEFINITIONS

      SECTION 1.1 DEFINITIONS. As used in this Agreement (including the
recitals), capitalized terms not otherwise defined herein or expressly
referenced as being defined in the Credit Agreement have the meanings provided
for such terms in the Intercreditor Agreement. References to "Sections,"
"subsections," "Exhibits" and "Schedules" shall be to Sections, subsections,
Exhibits and Schedules, respectively, of this Agreement unless otherwise
specifically provided. All references to statutes and regulations shall include
any amendments of the same and any successor statutes and regulations.
References to particular sections of the UCC should be read to refer also to
parallel sections of the Uniform Commercial Code as enacted in each state or
other jurisdiction where any portion of the Collateral is or may be located.

      The following terms have the meanings indicated below, all such
definitions to be equally applicable to the singular and plural forms of the
terms defined:

      "Account" means any "account," as such term is defined in Article or
Chapter 9 of the UCC, now owned or hereafter acquired by an applicable Debtor,
and, in any event, shall include, without limitation, each of the following,
whether now owned or hereafter acquired by such Debtor: (a) all rights of such
Debtor to payment for goods sold or leased or services rendered, whether or not
earned by performance, (b) all accounts receivable of such Debtor, (c) all
rights of such Debtor to receive any payment of money or other form of
consideration, (d) all security pledged, assigned or granted to or held by such
Debtor to secure any of the foregoing, (e) all guaranties of, or
indemnifications with respect to, any of the foregoing, and (f) all rights of
such Debtor as an unpaid seller of goods or services, including, but not limited
to, all rights of stoppage in transit, replevin, reclamation and resale.

      "Assignation" is defined in Section 2.1(i) of this Agreement.

                                       2
<PAGE>

      "Benefited Obligations" has the meaning specified in the Intercreditor
Agreement.

      "Benefited Parties" has the meaning specified in the Intercreditor
Agreement.

      "CAC Reinsurance" shall mean CAC Reinsurance Ltd. CAC Reinsurance shall be
considered and deemed to be, solely for purposes of the grant of a security
interest and lien over all of its property described in Sections 2.1(i) and
2.1(k) of this Agreement and the maintenance of the Receiving Account
established under Section 4.14(c) of this Agreement, a Debtor under this
Agreement.

      "CAC South Dakota" shall mean Credit Acceptance Corporation of South
Dakota, Inc.

      "Chattel Paper" means any "chattel paper," as such term is defined in
Article or Chapter 9 of the UCC, now owned or hereafter acquired by an
applicable Debtor.

      "Collateral" has the meaning specified in Section 2.1 of this Agreement.

      "Computer Records" has the meaning specified in Section 2.1(g) of this
Agreement.

      "Dealer(s)" shall mean a Person engaged in the business of the retail sale
or lease of motor vehicles, whether new or used, including any such Person which
constitutes an Affiliate of Debtor.

      "Dealer Agreement(s)" shall mean the sales and/or servicing agreements
between an applicable Debtor 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 for purposes of administration, servicing and collection
and under which the Company or its Subsidiary may make loans or advances to such
Dealers included in Dealer Loans and (ii) accepts outright assignments of
Installments Contracts from Dealers or funds Installments Contracts 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.

      "Dealer Loan(s)" shall mean the advances of cash made by an applicable
Debtor or any of its Subsidiaries to a Dealer at the time an Installment
Contract is approved, accepted by and assigned to the Company or any of its
Subsidiaries under a Dealer Agreement described in clause (i) of the definition
of Dealer Agreements, against anticipated future collections on Installment
Contracts serviced for such Dealer, as outstanding from time to time.

      "Document" means any "document," as such term is defined in Article or
Chapter 9 of the UCC, now owned or hereafter acquired by an applicable Debtor,
including, without limitation, all documents of title and all receipts covering,
evidencing or representing goods now owned or hereafter acquired by the Debtor.

      "Domestic Guaranty" has the meaning specified in the Credit Agreement.

      "Election" is defined in Section 6.4 of this Agreement.

                                       3
<PAGE>

      "Equipment" means any "equipment," as such term is defined in Article or
Chapter 9 of the UCC, now owned or hereafter acquired by an applicable the
Debtor and, in any event, shall include, without limitation, all machinery,
equipment, furniture, trade fixtures, tractors, trailers, rolling stock,
vessels, aircraft and vehicles now owned or hereafter acquired by such Debtor
and any and all additions, substitutions and replacements of any of the
foregoing, wherever located, together with all attachments, components, parts,
equipment and accessories installed thereon or affixed thereto.

      "Event of Default" has the meaning specified in the Intercreditor
Agreement.

      "Financing Agreements" has the meaning specified in the Intercreditor
Agreement.

      "Future Debt" has the meaning specified in the Intercreditor Agreement.

      "Future Debt Documents" has the meaning specified in the Intercreditor
Agreement.

      "Future Debt Holders" has the meaning specified in the Intercreditor
Agreement.

      "General Intangibles" means any "general intangibles," as such term is
defined in Article or Chapter 9 of the UCC, now owned or hereafter acquired by
an applicable Debtor and, in any event, shall include, without limitation, each
of the following, whether now owned or hereafter acquired by such Debtor: (a)
all of such Debtor's service marks, trade names, trade secrets, registrations,
goodwill, franchises, licenses, permits, proprietary information, customer
lists, designs and inventions; (b) all of such Debtor's books, records, data,
plans, manuals, computer software, computer tapes, computer disks, computer
programs, source codes, object codes and all rights of such Debtor to retrieve
data and other information from third parties; (c) all of such Debtor's
commercial tort claims, contract rights, partnership interests, membership
interests, joint venture interests, securities and other investment property,
deposit accounts, investment accounts and certificates of deposit; (d) all
rights of such Debtor to payment under letters of credit and similar agreements;
(e) all tax refunds and tax refund claims of such Debtor; (f) all choses in
action and causes of action of such Debtor (whether arising in contract, tort or
otherwise and whether or not currently in litigation) and all judgments in favor
of such Debtor; (g) all rights and claims of such Debtor under warranties and
indemnities; and (h) all rights of such Debtor under any insurance, surety or
similar contract or arrangement.

      "Installment Contract(s)" shall mean retail installment contracts for the
sale of new or used motor vehicles assigned outright by Dealers to an applicable
Debtor or written by Dealers in the name of such Debtor or a Subsidiary of such
Debtor (and funded by Debtor or such Subsidiary) or assigned by Dealers to
Debtor or a Subsidiary of Debtor, as nominee for the Dealer, for administration,
servicing, and collection and/or for collateral purposes to secure Dealer Loans,
in each case pursuant to an applicable Dealer Agreement; provided, however, that
to the extent such Debtor or any Subsidiary transfers or encumbers its interest
in any Installment Contracts (or any Dealer Loans 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 aggregate amount of Dealer Loans by
the outstanding amount of such loans, if any, attributable to such Installment

                                       4
<PAGE>

Contracts) unless and until such Installment Contracts are reassigned to such
Debtor or a Subsidiary of such Debtor or such encumbrances are discharged.

      "Instrument" means any "instrument," as such term is defined in Article or
Chapter 9 of the UCC, now owned or hereafter acquired by an applicable Debtor,
and, in any event, shall include all promissory notes, drafts, bills of exchange
and trade acceptances of such Debtor, whether now owned or hereafter acquired.

      "Intercompany Notes" shall mean the promissory notes, substantially in the
form of Exhibit N to the Credit Agreement, issued or to be issued by a Debtor or
any Subsidiary to evidence any loan or advance in the nature of a loan by a
Debtor to any other Debtor, or by a Debtor to any other Subsidiary.

      "Inventory" means any "inventory," as such term is defined in Article or
Chapter 9 of the UCC, now owned or hereafter acquired by an applicable Debtor,
and, in any event, shall include, without limitation, each of the following,
whether now owned or hereafter acquired by such Debtor: (a) all goods and other
personal property of such Debtor that are held for sale or lease or to be
furnished under any contract of service; (b) all raw materials, work-in-process,
finished goods, supplies and materials of such Debtor; (c) all wrapping,
packaging, advertising and shipping materials of such Debtor; (d) all goods that
have been returned to, repossessed by or stopped in transit by such Debtor; and
(e) all Documents evidencing any of the foregoing.

      "Leases" shall mean all retail agreements for the lease of motor vehicles
in which Debtor has an interest, whether as assignee, lessor, pledgee, servicer
or otherwise;

      "Lenders" has the meaning specified in the preamble to this Intercreditor
Agreement.

      "Majority Benefited Parties" has the meaning specified in the
Intercreditor Agreement.

      "Permitted Liens" has the meaning specified in Section 3.1 of this
Agreement.

      "Permitted Securitization" shall mean a "Permitted Securitization" under
each of the applicable Financing Agreements.

      "Pledged Shares" means the shares of capital stock or other equity,
partnership or membership interests described on Schedule D attached hereto and
incorporated herein by reference, as such schedule may be amended, modified or
replaced from time to time.

      "Prior Security Agreement(s)" is defined in Section 7.16 of this
Agreement.

      "Proceeds" means any "proceeds," as such term is defined in Article or
Chapter 9 of the UCC and, in any event, shall include, but not be limited to,
(a) any and all proceeds of any insurance, indemnity, warranty or guaranty
payable to an applicable Debtor from time to time with respect to any of the
Collateral, (b) any and all payments (in any form whatsoever) made or due and
payable to such Debtor from time to time in connection with any requisition,
confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any governmental authority (or any Person acting, or purporting to
act, for or on behalf of any

                                       5
<PAGE>

governmental authority), and (c) any and all other amounts from time to time
paid or payable under or in connection with any of the Collateral.

      "Records" is defined in Section 4.9 of this Agreement.

      "Security Documents" has the meaning specified in the Intercreditor
Agreement.

      "Significant Domestic Subsidiary" shall mean any Significant Domestic
Subsidiary under the Credit Agreement or the Future Debt Documents, as in effect
from time to time.

      "Software" has the meaning specified in Section 2.1(g) of this Agreement.

      "Special Account" is defined in Section 6.3 of this Agreement.

      "Subsidiary" shall mean any Subsidiary under the Credit Agreement or under
the Future Debt Documents, as in effect from time to time.

      "T & C Subsidiary" shall mean CAC (TCI) Ltd., a company established under
the laws of the Turks and Caicos Islands. The T& C Subsidiary shall be
considered and deemed to be, solely for purposes of the grant of a security
interest and lien over all of its property described in Sections 2.1(i) and
2.1(k) of this Agreement and the maintenance of the Receiving Account
established under Section 4.14(c) of this Agreement, a Debtor under this
Agreement.

      "UCC" means the Uniform Commercial Code as in effect in the State of
Michigan; provided, that if, by applicable law, the perfection or effect of
perfection or non-perfection of the security interest created hereunder in any
Collateral is governed by the Uniform Commercial Code as in effect on or after
the date hereof in any other jurisdiction, "UCC" means the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions
hereof relating to such perfection or the effect of perfection or
non-perfection.

                                   ARTICLE II
                               SECURITY INTEREST

      SECTION 2.1 SECURITY INTEREST. As collateral security for the prompt
payment and performance in full when due of the Benefited Obligations (whether
at stated maturity, by acceleration or otherwise), each Debtor hereby pledges
and assigns (as collateral) to the Collateral Agent, and grants the Collateral
Agent a continuing lien on and security interest in, all of such Debtor's right,
title and interest in and to the following, whether now owned or hereafter
arising or acquired and wherever located (collectively, the "Collateral"):

            (a) all Accounts;

            (b) all Chattel Paper, Documents and Instruments;

            (c) all Leases;

            (d) all General Intangibles;

                                       6
<PAGE>

            (e) all Equipment;

            (f) all Inventory;

            (g) all Dealer Loans, Dealer Agreements (and any amounts advanced
                to or liens granted by Dealers thereunder), and the Installment
                Contracts or Leases securing the repayment of such Dealer Loans,
                (and other indebtedness of Dealers to such Debtor) and related
                financial assets (the security interest granted hereby in such
                Dealer Agreements, Dealer Loans, Installment Contracts and
                Leases, and the Accounts, Chattel Paper, General Intangibles and
                proceeds therefrom relating to such Dealer Agreements, Dealer
                Loans, Installment Contracts and Leases being subject to the
                rights of Dealers under Dealer Agreements);

            (h) all trademarks, tradenames, patents, copyrights and other
                intellectual property, including without limitation any such
                property identified on Schedule F hereto, and all computer
                records ("Computer Records") and software ("Software"), whether
                relating to the foregoing Collateral or otherwise, but in the
                case of such Software, subject to the rights of any
                non-affiliated licensee of software;

            (i) all shares of stock, and other equity, partnership or membership
                interests constituting ownership interests (or evidence thereof)
                or other securities, of the Significant Domestic Subsidiaries of
                Debtor from time to time owned or acquired by such Debtor in any
                manner (including without limitation, as applicable, the Pledged
                Shares) and any certificates at any time evidencing the same,
                and all dividends, cash, instruments, rights and other property
                from time to time received, receivable or otherwise distributed
                or distributable in respect of or in exchange for any or all of
                such shares; and any monies and other property from time to time
                received, receivable or otherwise distributed or distributable
                in respect of or in exchange CAC South Dakota's partnership
                interest in CAC Scotland to the extent such partnership interest
                has been pledged and assigned, for collateral purposes, to the
                Collateral Agent, for and on behalf of the Benefited Parties
                pursuant to that certain Assignation in Security by and among
                CAC South Dakota, the Collateral Agent, CAC International
                Holdings, L.L.C. and CAC Scotland (as amended from time to time,
                the "Assignation");

            (j) all Intercompany Notes issued in favor of such Debtor; and

            (k) the Proceeds, in cash or otherwise, of any of the property
                described in the foregoing clauses (a) through (k) and all
                liens, security, rights, remedies and claims of such Debtor with
                respect thereto, including without limitation any such Proceeds
                deposited from time to time in the Special Account or in any
                other cash collateral account maintained by a Debtor with the
                Collateral Agent under, or in connection with, this Agreement or

                                       7
<PAGE>

                        any other Financing Agreement and all such Debtor's
                        rights in each such account;

provided, however, that "Collateral" shall not include rights under or with
respect to any General Intangible, license, permit or authorization to the
extent any such General Intangible, license, permit or authorization, by its
terms or by law, prohibits the assignment of, or the granting of a security
interest in, the rights of a Grantor thereunder or which would be invalid or
enforceable upon any such assignment or grant (the "Restricted Assets");
provided further that (A) the Proceeds of any Restricted Asset shall be continue
to be deemed to be "Collateral", and (B) this provision shall not limit the
grant of any Lien on or assignment of any Restricted Asset to the extent that
the UCC or any other applicable law provides that such grant of Lien or
assignment is effective irrespective of any prohibitions to such grant provided
in any Restricted Asset (or the underlying documents related thereto).
Concurrently with any such Restricted Asset being entered into or arising after
the date hereof, the applicable Debtor shall be obligated to obtain any waiver
or consent (in form and substance acceptable to the Agent) necessary to allow
such Restricted Asset to constitute Collateral hereunder if the failure of such
Debtor to have such Restricted Asset would have a Material Adverse Effect.; and
provided further that "Collateral" shall not include any (i) Dealer Loans,
Installment Contracts, Leases, rights or interests under Dealer Agreements and
related financial assets transferred by an applicable Debtor prior to the date
hereof pursuant to a Permitted Securitization, except to the extent any such
property is re-transferred to such Debtor according to the terms of such
Permitted Securitization or (ii) any equity interests in Foreign Subsidiaries
except to the extent described in Section 2.1(i) of the Security Agreement.

      SECTION 2.2 DEBTORS REMAINS LIABLE. Notwithstanding anything to the
contrary contained herein, (a) each Debtor shall remain liable under the
contracts, agreements, documents and instruments included in the Collateral
(including without limitation Dealer Agreements, Dealer Loans, Installment
Contracts and Leases) to the extent set forth therein to perform all of its
duties and obligations thereunder to the same extent as if this Agreement had
not been executed and pay when due any taxes, including without limitation, any
sales taxes payable in connection with the Dealer Agreements, Dealer Loans,
Installment Contracts or Leases and their creation and satisfaction, (b) the
exercise by the Collateral Agent or any of the Benefited Parties of any of their
respective rights or remedies hereunder shall not release any Debtor from any of
its duties or obligations under the contracts, agreements, documents and
instruments included in the Collateral, and (c) subject to the rights of Dealers
under Dealer Agreements to the extent of collections on Installment Contracts or
Leases for the account of such Dealers received by the Collateral Agent or any
Benefited Party, neither the Collateral Agent nor any of the Benefited Parties
shall have any indebtedness, liability or obligation (by assumption or
otherwise) under any of the contracts, agreements, documents and instruments
included in the Collateral (including without limitation any Dealer Agreement,
Installment Contract or Lease) by reason of this Agreement, and none of such
parties shall be obligated to perform any of the obligations or duties of any
Debtor thereunder (including without limitation any obligation to make future
advances to or on behalf of any Dealer or other obligor) or to take any action
to collect or enforce any claim for payment assigned hereunder.

      SECTION 2.3 DELIVERY OF COLLATERAL. (a) All certificates or other
instruments representing or evidencing the Pledged Shares, promptly upon an
applicable Debtor gaining any

                                       8
<PAGE>

rights therein, shall be delivered to and held by or on behalf of the Collateral
Agent pursuant hereto in suitable form for transfer by delivery, or accompanied
by duly executed stock powers or instruments of transfer or assignments in
blank, all in form and substance reasonably satisfactory to the Collateral
Agent.

      (b) Each of the Intercompany Notes, promptly upon an applicable Debtor
gaining any rights therein, shall be delivered to and held by or on behalf of
the Collateral Agent pursuant hereto, endorsed to the Collateral Agent without
representation, warranty or recourse (except as provided herein) for security
purposes, or accompanied by separate assignments to Collateral Agent (on
comparable terms), all in form and substance reasonably satisfactory to the
Collateral Agent.

      SECTION 2.4 MARKING COMPUTER FILES. In connection with the security
interest and lien established hereby, each Debtor hereby agrees, at its sole
expense, to indicate clearly and unambiguously in its computer files with
respect to the Dealer Agreements, Dealer Loans, Installment Contracts and Leases
encumbered hereby, that such Debtor's rights to payment under such Dealer
Agreements, Dealer Loans, Installment Contracts and Leases have been pledged to
the Collateral Agent pursuant to this Agreement for the benefit of the Benefited
Parties.

      SECTION 2.5 AFFIXING LEGENDS. Each Debtor shall, within thirty (30) days
from the date hereof with respect to each Dealer Agreement which constitutes
Collateral on the date hereof and, with respect to each Dealer Agreement which
subsequently becomes Collateral hereunder, within five (5) days of such Debtor's
entering into any such agreement, clearly mark each such Dealer Agreement
encumbered hereby with the following legend: "THIS AGREEMENT HAS BEEN PLEDGED TO
COMERICA BANK, AS COLLATERAL AGENT FOR THE BENEFIT OF CERTAIN BENEFITED
PARTIES". Such legend shall be in bold, in type face at least as large as 12
point and shall be entirely in capital letters.

                                  ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

      To induce the Collateral Agent to enter into this Agreement and the
Intercreditor Agreement, and to induce the Lenders and the Future Debt Holders
to enter into the Financing Agreements, each of the Debtors represents and
warrants to the Collateral Agent and to each Lender that as of the date hereof:

      SECTION 3.1 TITLE. The applicable Debtor is, and with respect to
Collateral acquired after the date hereof such Debtor will be, the legal and
beneficial owner of the Collateral free and clear of any Lien or other
encumbrance, except for (a) Liens which constitute both (x) Liens which are
permitted under Section 8.6 of the Credit Agreement and (y) Liens which are not
prohibited by the terms of the Future Debt Documents (hereinafter, "Permitted
Liens"), provided that, other than the Lien established hereby, no Lien on the
Collateral described in clauses (i) or (j) of Section 2.1 shall constitute a
Permitted Lien, (b) with respect to Dealer Agreements and Dealer Loans, and the
Installment Contracts, Accounts, Chattel Paper, Leases and General Intangibles
(and proceeds therefrom) relating to such Dealer Agreements and Dealer Loans,
the rights of Dealers under such Dealer Agreements and (c) with respect to
Installment Contracts or Leases (other than those owned outright by Debtor),
Dealers' interests in financed vehicles and

                                       9
<PAGE>

in the proceeds of such Installment Contracts or Leases and Dealers' interests,
and the security interest and lien granted by Dealers to Debtor to secure
repayment of Dealer Loans (and all other indebtedness of Dealers to Debtor)
pursuant to the applicable Dealer Agreement.

      SECTION 3.2 FINANCING STATEMENTS. No financing statement, security
agreement or other Lien instrument covering all or any part of the Collateral is
on file in any public office with respect to any outstanding obligation of the
Debtors except (i) as may have been filed in favor of the Collateral Agent
pursuant to this Agreement, (ii) financing statements filed to perfect Permitted
Liens, and (iii) Liens described in Section 3.1(c) hereof. As of the date
hereof, and to the best of the applicable Debtor's knowledge, except as
otherwise disclosed on Schedule E hereto, such Debtor does not do business and
has not done business within the past five (5) years under a trade name or any
name other than its legal name set forth at the beginning of this Agreement.

      SECTION 3.3 PRINCIPAL PLACE OF BUSINESS. The principal place of business
and chief executive office of the applicable Debtor, and the office where such
Debtor keeps its books and records, is located at the address of such Debtor
shown on Schedule A hereto.

      SECTION 3.4 LOCATION OF COLLATERAL. All Inventory (except Inventory in
transit) and Equipment (other than vehicles) of the applicable Debtor in the
possession of such Debtor are located at the places specified on Schedule A
hereto. If any such location is leased by such Debtor as of the date hereof, the
name and address of the landlord leasing such location is identified on Schedule
A hereto. None of the Inventory or Equipment of such Debtor (other than
trailers, rolling stock, vessels, aircraft and vehicles) is evidenced by a
Document (including, without limitation, a negotiable document of title). All
certificates or other instruments owned by such Debtor representing shares of
stock or other ownership interests of any Significant Domestic Subsidiary
(including, without limitation, the Pledged Shares) will be delivered to the
Collateral Agent, accompanied by duly executed stock powers or instruments of
transfer or assignments in blank with respect thereto.

      SECTION 3.5 PERFECTION. Upon (a) the filing of Uniform Commercial Code
financing statements in the jurisdictions listed on Schedule B attached hereto,
(b) the recording of this Agreement in the United States Patent and Trademark
Office and the United States Copyright Office; and (c) upon the Collateral
Agent's obtaining possession of the certificates evidencing the Pledged Shares,
accompanied by duly executed stock powers or instruments of transfer or
assignments in blank and of the Intercompany Notes (duly endorsed, as
aforesaid), the security interest in favor of the Collateral Agent created
herein will constitute a valid and perfected Lien upon and security interest in
the Collateral which may be created and perfected under the UCC by filing
financing statements, obtaining an acknowledgment of lien from an issuer or
obtaining possession of the Collateral, subject to no junior, equal or prior
Liens except for those (if any) which constitute Permitted Liens.

      SECTION 3.6 PRIMARY COMPUTER SYSTEMS AND SOFTWARE; COMPUTER RECORDS AND
INTELLECTUAL PROPERTY. The only material service and computer systems and
related Software utilized by the applicable Debtor to service Dealer Agreements,
Dealer Loans, Installment Contracts and Leases (whether or not encumbered
hereby) are (a) the Application and Contract System which is used from the time
a dealer faxes an application to such Debtor until the

                                       10
<PAGE>

relevant Installment Contract or Lease is received and funded, (b) the Loan
Servicing System which contains all payment information and is the primary
source for management information reporting, and (c) the Collection System which
is used by such Debtor's collections personnel to track and service all active
customer accounts. Such computer systems and software are defined (and described
in greater detail) on Schedule C, attached hereto.

      SECTION 3.7 PLEDGED SHARES.

      (a) The Pledged Shares that are shares of a corporation have been duly
authorized and validly issued and are fully paid and non-assessable, and the
Pledged Shares which are membership, partnership or other similar ownership
interests have been validly granted, under the laws of the jurisdiction of
organization of the issuers thereof, and, to the extent applicable, are fully
paid and nonassessable.

      (b) The applicable Debtor is the legal and beneficial owner of the Pledged
Shares, free and clear of any Lien (other than the Liens created by this
Agreement and the Permitted Liens) and no issuer of Pledged Shares is a party to
any agreement granting "control" (as defined in Section 8-106 of the UCC) of
such Debtor's Pledged Shares to any third party. All such shares are held by
each Debtor directly and not through any securities intermediary.

      (c) On the date hereof, the Pledged Shares constitute the percentage of
the issued and outstanding shares of stock, partnership units or membership or
other ownership interests of the Issuers thereof indicated on Schedule D, if
applicable, and such schedule contains a description of all shares of capital
stock, partnership units, membership interests and other ownership interests of
or in the Significant Domestic Subsidiaries owned by the applicable Debtor (as
such Schedule D may from time to time be supplemented, amended or modified in
accordance with the terms of this Agreement).

      SECTION 3.8 INTELLECTUAL PROPERTY.

      Each Debtor owns the United States registered copyrights, letters patent
and trademarks and intellectual property license agreements set forth on the
attached Schedule F, together with the applications for registration of
copyrights, trademarks or patents, and such mask works set forth on the attached
Schedule F, together with such additional intellectual property as such Debtor
may disclose to the Collateral Agent from time to time, and all such property
rights are valid, subsisting and enforceable, except where the failure to be so
could not reasonably be expected to have a Material Adverse Effect. Each Debtor
has made all necessary filings and recordations to protect and maintain its
interest in the foregoing trademarks, patents and copyrights set forth on
Schedule F (as the same may be amended from time to time), including, without
limitation, all necessary filings and recordings, and payments of all
maintenance fees, in the United States Patent and Trademark Office and United
States Copyright Office to the extent such Trademarks, Patents and Copyrights
are material to such Debtor's business

                                       11
<PAGE>

                                   ARTICLE IV
                                    COVENANTS

      Each of the Debtors covenants and agrees with the Collateral Agent that
until the Benefited Obligations are paid and performed in full and all
commitments to lend or provide other credit accommodations under the Credit
Agreement have been terminated:

      SECTION 4.1 ENCUMBRANCES. The applicable Debtor shall not create, permit
or suffer to exist, and shall defend the Collateral against, any Lien or other
encumbrance (other than the Liens created by this Agreement and the Permitted
Liens) or any restriction upon the pledge or other transfer thereof (other than
as provided in the Financing Agreements), and shall, subject to the Permitted
Liens, defend such Debtor's title to and other rights in the Collateral and the
Collateral Agent's pledge and collateral assignment of and security interest in
the Collateral against the claims and demands of all Persons. Except to the
extent permitted by the Financing Agreements or in connection with any release
of Collateral under Section 7.13 hereof (but only to the extent of any
Collateral so released), such Debtor shall do nothing to impair the rights of
the Collateral Agent in the Collateral.

      SECTION 4.2 COLLECTION OF ACCOUNTS AND CONTRACTS; NO COMMINGLING. The
applicable Debtor shall, in accordance with its usual business practices,
endeavor to collect or cause to be collected from each account debtor under its
Accounts, as and when due, any and all amounts owing under such Accounts and
from any Dealer or from any obligor under an Installment Contract or Lease, as
the case may be, any Dealer Loans or other amounts owing under a Dealer
Agreement, Installment Contract or Lease, as applicable. The applicable Debtor
shall take the steps required under the documents relating to Permitted
Securitizations to segregate any Collateral transferred, encumbered or otherwise
affected by a Permitted Securitization from the Collateral encumbered under this
Agreement and all proceeds or other sums received in respect thereof (provided
that Dealer Agreements which cover Dealer Loans which have been transferred
pursuant to a Permitted Securitization, but which also cover Dealer Loans
encumbered hereby, may contain the legend affixed in connection with the
applicable Permitted Securitization, so long as such Dealer Agreements also
contain the legend required under Section 2.5 hereof).

      SECTION 4.3 DISPOSITION OF COLLATERAL. To the extent prohibited by the
terms of the Financing Agreements, the applicable Debtor shall not enter into or
consummate any transfer or other disposition of assets without the prior written
consent of the applicable Benefited Parties, according to the terms of the
applicable Financing Agreements.

      SECTION 4.4 FURTHER ASSURANCES. At any time and from time to time, upon
the request of the Collateral Agent, and at the sole expense of the Debtors, the
applicable Debtor shall promptly execute and deliver all such further
agreements, documents and instruments and take such further action as the
Collateral Agent may reasonably deem necessary or appropriate to preserve and
perfect its security interest in and pledge and collateral assignment of the
Collateral and carry out the provisions and purposes of this Agreement or to
enable the Collateral Agent to exercise and enforce its rights and remedies
hereunder with respect to any of the Collateral; provided, however, that nothing
contained in this Section 4.4 shall require such Debtor to affix legends to the
Dealer Agreements, Installment Contracts or Leases (or folders containing the
same) prior to the times set forth in Sections 2.5 and 6.4, respectively. Except
as otherwise expressly permitted by the terms of the Financing Agreements
relating to disposition of assets, including without limitation any Permitted
Securitization and except for Permitted Liens, the

                                       12
<PAGE>

applicable Debtor agrees to maintain and preserve the Collateral Agent's
security interest in and pledge and collateral assignment of the Collateral
hereunder. Without limiting the generality of the foregoing, the applicable
Debtor shall (a) execute and deliver to the Collateral Agent such financing
statements as the Collateral Agent may from time to time require; and (b)
execute and deliver to the Collateral Agent, or cause to be so executed and
delivered, such other agreements, acknowledgments, documents and instruments,
including without limitation stock powers, as the Collateral Agent may require
to perfect and maintain the validity, effectiveness and priority of the Liens
intended to be created by the Security Documents. The applicable Debtor
authorizes the Collateral Agent to file one or more financing or continuation
statements, and amendments thereto, relating to all or any part of the
Collateral without the signature of such Debtor unless otherwise prohibited by
law.

      SECTION 4.5 INSURANCE. The applicable Debtor shall maintain insurance of
the types and in amounts, and under the terms and conditions, specified in the
Financing Agreements and shall cause the Collateral Agent to be named as "lender
loss payee" thereunder to the full extent required to perfect and/or protect the
Lien established hereby. Recoveries under any such policy of insurance shall be
paid as provided in the Financing Agreements and Intercreditor Agreement.

      SECTION 4.6 BAILEES. If any of the Collateral is at any time in the
possession or control of any warehouseman, bailee or any of the applicable
Debtor's agents or processors, the applicable Debtor shall, at the request of
the Collateral Agent (as directed by the Majority Benefited Parties), notify
such warehouseman, bailee, agent or processor of the security interest created
hereunder and shall instruct such Person to hold such Collateral for the
Collateral Agent's account subject to the Collateral Agent's instructions, and
shall obtain such acknowledgments and/or undertakings from such Persons as
reasonably requested by Collateral Agent (as directed by the Majority Benefited
Parties).

      SECTION 4.7 FURNISHING OF INFORMATION AND INSPECTION RIGHTS. (a) Pursuant
to the Prior Security Agreements, the applicable Debtors thereunder delivered to
the Collateral Agent, on a confidential and proprietary basis, one or more
computer files or microfiche lists containing true and complete (and updated to
the most recent month end) lists of all Dealer Agreements and Dealer Loans, and
all Installment Contracts or Leases, as applicable, securing all such Dealer
Loans or owned outright by such Debtor, identified by account number, dealer
number (if not owned outright by such Debtor) , and pool number and the
outstanding balance as of the date of such file or list.

      (a) From and after the date of this Agreement,

            (i) so long as no Event of Default has occurred and is continuing,
      upon the written request of the Collateral Agent (as directed by the
      Majority Benefited Parties), each applicable Debtor shall be obligated,
      but not more frequently than monthly; and

            (ii) upon the occurrence and during the continuance of an Event of
      Default, each applicable Debtor shall be obligated, on a monthly basis
      whether or not Collateral Agent shall so request, and more frequently upon
      the written request of the Collateral Agent (as directed by the Majority
      Benefited Parties);

                                       13
<PAGE>

to furnish to the Collateral Agent, a computer file, microfiche list or other
list identifying each of the Dealer Agreements, Dealer Loans, Installment
Contracts and Leases encumbered hereby by pool number, account number and dealer
number (if not owned outright by such Debtor) and by the outstanding balance
thereof and identifying the obligor on the relevant Installment Contract or
Lease, and such Debtor shall also furnish to the Collateral Agent from time to
time such other information with respect to Dealer Agreements, Dealer Loans,
Installment Contracts and Leases encumbered hereby as the Collateral Agent may
reasonably request. Without impairing the rights of any Benefited Party to
obtain information from such Debtor under any of the other Financing Agreements,
as applicable, the Collateral Agent shall furnish copies of the foregoing to any
Lender or Future Debt Holder upon its request following the occurrence and
during the continuance of any Default or Event of Default, and each Debtor
hereby authorizes and approves such release. Each Debtor will, at any time and
from time to time during regular business hours, upon 5 days prior notice
(except if any Event of Default has occurred and is continuing, when no prior
notice shall be required), permit the Collateral Agent, or its agents or
representatives, to examine and make copies of and abstracts from all Records,
to visit the offices and properties of such Debtor for the purpose of examining
such Records, and to discuss matters relating to the Dealer Loans, Installment
Contracts, Leases or such Debtor's performance hereunder and under the other
Financing Documents with any of the officers, directors, employees or
independent public accountants of such Debtor having knowledge of such matters;
provided, however, that the Collateral Agent acknowledges that, in exercising
the rights and privileges conferred in this Section 4.7, it or its agents and
representatives may, from time to time, obtain knowledge of information,
practices, books, correspondence and records of a confidential nature and in
which such Debtor has a proprietary interest. The Collateral Agent agrees that
all such information, practices, books, correspondence and records are to be
regarded as confidential information and agrees that it shall retain in strict
confidence and shall use its reasonable efforts to ensure that its agents and
representatives retain in strict confidence, and will not disclose without the
prior written consent of the applicable Debtor, any such information, practices,
books, correspondence and records furnished to them except that the Collateral
Agent may disclose such information (i) to its officers, directors, employees,
agents, counsel, accountants, auditors, affiliates, advisors or representatives
(provided that such Persons are informed of the confidential nature of such
information), (ii) to the extent such information has become available to the
public other than as a result of a disclosure by or through the Collateral Agent
or its officers, directors, employees, agents, counsel, accountants, auditors,
affiliates, advisors or representatives, (iii) to the extent such information
was available to the Collateral Agent on a nonconfidential basis prior to its
disclosure to the Collateral Agent hereunder, (iv) to the extent the Collateral
Agent is (A) required in connection with any legal or regulatory proceeding or
(B) requested by any bank or other regulatory authority to disclose such
information, (v) to any prospective assignee of any note or other instrument
evidencing a Benefited Obligation; provided, that the Collateral Agent shall
notify such assignee of the confidentiality provisions of this Section 4.7 and
such assignee shall agree to be bound thereby, or (vi) to any Benefited Party,
subject to the confidentiality provisions contained in this Agreement and any
other Financing Agreement to which it is a party, upon the request of such party
following the occurrence and during the continuance of such Default or Event of
Default (but with no obligation on the part of any such Benefited Party
hereunder to return such information to Collateral Agent or the applicable
Debtor if any such Default or Event of Default is subsequently cured or waived).
Notwithstanding anything to the contrary in this Agreement, the Collateral Agent
may reply to a request from any Person for a list

                                       14
<PAGE>

of Dealer Loans, Dealer Agreements, Installment Contracts, Leases or other
information related to any Collateral referred to in any financing statement
filed or acknowledgment obtained to perfect the security interest and liens
established hereby, to the extent necessary to maintain the perfection or
priority of such security interests or liens, or otherwise required under
applicable law. The Collateral Agent agrees (at Debtors' sole cost and expense)
to take such measures as shall be reasonably requested by the Debtors to protect
and maintain the security and confidentiality of such information. The
Collateral Agent shall exercise good faith and make diligent efforts to provide
the Debtors with written notice at least five (5) Business Days prior to any
disclosure pursuant to this Subsection 4.7(b).

      (c) Furthermore, each Debtor shall permit the Collateral Agent and its
representatives to examine, inspect and audit the Collateral and to examine,
inspect and audit such Debtor's books and Records as otherwise provided under
the Financing Agreements.

      SECTION 4.8 CORPORATE CHANGES. None of the Debtors shall change its name,
identity or corporate structure in any manner that might make any financing
statement filed in connection with this Agreement seriously misleading within
the meaning of Section 9-402(8) of the UCC unless such Debtor shall have given
the Collateral Agent thirty (30) days prior written notice thereof and shall
have taken all action deemed necessary or desirable by the Collateral Agent to
protect its Liens and the perfection and priority thereof. None of the Debtors
shall change its principal place of business, chief executive office or the
place where it keeps its books and records unless it shall have given the
Collateral Agent thirty (30) days prior written notice thereof and shall have
taken all action deemed necessary or desirable by the Collateral Agent to cause
its security interest in the Collateral to be perfected with the priority
required by this Agreement.

      SECTION 4.9 BOOKS AND RECORDS; INFORMATION. Each Debtor shall keep
accurate and complete books and records (the "Records") of the Collateral and
such Debtor's business and financial condition in accordance with the Financing
Agreements. Subject to Section 4.7, each Debtor shall from time to time at the
request of the Collateral Agent deliver to the Collateral Agent such information
regarding the Collateral and such Debtor as the Collateral Agent may reasonably
request, including, without limitation, lists and descriptions of the Collateral
and evidence of the identity and existence of the Collateral. Each Debtor shall
mark its books and records to reflect the security interest of the Collateral
Agent under this Agreement; provided, however, that with respect to its computer
files, such Debtor's compliance with Section 2.4 hereof shall be deemed to
satisfy its obligations under this sentence.

      SECTION 4.10 ADMINISTRATIVE AND OPERATING PROCEDURES. Each Debtor will
maintain and implement administrative and operating procedures (including
without limitation an ability to recreate records relating to the Dealer
Agreements, Dealer Loans, Installment Contracts and Leases encumbered hereby in
the event of the destruction of the originals thereof), and keep and maintain,
or obtain, as and when required, all documents, books, records and other
information reasonably necessary or advisable for the collection of all amounts
due under the Dealer Agreements, Dealer Loans, Installment Contracts and Leases
encumbered hereby (including without limitation records adequate to permit
adjustments to amounts due under each of such Dealer Agreements, Dealer Loans,
Installment Contracts and Leases). Each Debtor will give the Collateral Agent
notice of any material change in the administrative and operating procedures of

                                       15
<PAGE>

such Debtor referred to in the previous sentence. Notwithstanding the foregoing,
the Debtors shall not be required to make or retain duplicate copies of
Installment Contracts or Leases.

      SECTION 4.11 EQUIPMENT AND INVENTORY.

      (a) Each Debtor shall keep the Equipment (other than vehicles) and
Inventory (other than Inventory in transit) which is in such Debtor's possession
at any of the locations specified on Schedule A hereto or, upon thirty (30) days
prior written notice to the Collateral Agent, at such other places within the
United States of America or Canada where all action required to perfect the
Collateral Agent's security interest in the Equipment and Inventory with the
priority required by this Agreement shall have been taken.

      (b) Each Debtor shall maintain the Equipment and Inventory in accordance
with the terms of the Financing Agreements.

      SECTION 4.12 NOTIFICATION. Each Debtor shall promptly notify the
Collateral Agent in writing of any Lien, encumbrance or claim (other than a
Permitted Lien) that has attached to or been made or asserted against any of the
Collateral upon becoming aware of the existence of such Lien, encumbrance or
claim.

      SECTION 4.13 COLLECTION OF ACCOUNTS. So long as no Event of Default has
occurred and is continuing and except as otherwise provided in this Section 4.13
and in Section 5.1, the applicable Debtor shall have the right to collect and
receive payments on the Accounts, Dealer Agreements, Dealer Loans, Installment
Contracts, Leases and other financial assets, and to use and expend the same in
its operations, in each case in compliance with the terms of each of the
Financing Agreements. In connection with such collections, the applicable Debtor
may take (and, at the Collateral Agent's direction following the occurrence and
during the continuance of an Event of Default, shall take) such actions as such
Debtor or the Collateral Agent may deem necessary or advisable to enforce
collection of the Accounts, Dealer Agreements, Dealer Loans, Installment
Contracts and other financial assets.

      SECTION 4.14 VOTING RIGHTS; DISTRIBUTIONS, ETC.

      (a) So long as no Event of Default shall have occurred and be continuing
(both before and after giving effect to any of the actions or other matters
described in clauses (i) or (ii) of this subparagraph):

                  (i) Each Debtor shall be entitled to exercise any and all
            voting and other consensual rights (including, without limitation,
            the right to give consents, waivers and ratifications) pertaining to
            any of the Pledged Shares or any part thereof; provided, however,
            that no vote shall be cast or consent, waiver or ratification given
            or action taken without the prior written consent of the Collateral
            Agent which would violate any provision of this Agreement or any
            other Financing Agreement; and

                  (ii) Except as otherwise provided in this Agreement or any of
            the other Financing Agreements, each Debtor shall be entitled to
            receive and retain any and

                                       16
<PAGE>

            all dividends, distributions and interest paid in respect to any of
            the Pledged Shares.

           (b) Upon the occurrence and during the continuance of an Event of
               Default:

                  (i) The Collateral Agent may, at the direction or with the
            concurrence of the Majority Benefited Parties as required under the
            Intercreditor Agreement, (without notice to the Debtors), transfer
            or register in the name of the Collateral Agent or any of its
            nominees, for the equal and ratable benefit of the Lenders and the
            Future Debt Holders, any or all of the Pledged Shares, and the
            Proceeds thereof (in cash or otherwise) held by the Collateral Agent
            hereunder, and the Collateral Agent or its nominee may thereafter,
            at the direction or with the concurrence of the Majority Benefited
            Parties as required under the Intercreditor Agreement, after
            delivery of notice to the applicable Debtor, exercise all voting and
            corporate or similar rights at any meeting of any corporation or
            other entity issuing any of the Pledged Shares, and any and all
            rights of conversion, exchange, subscription, distribution or any
            other rights, privileges or options pertaining to any of the Pledged
            Shares as if the Collateral Agent were the absolute owner thereof,
            including, without limitation, the right to exchange, at its
            discretion, any and all of the Pledged Shares upon the merger,
            consolidation, reorganization, recapitalization or other
            readjustment of any corporation or other entity issuing any of such
            Pledged Shares, or upon the exercise by any such issuer or the
            Collateral Agent of any right, privilege or option pertaining to any
            of the Pledged Shares, and in connection therewith, to deposit and
            deliver any and all of the Pledged Shares with any committee,
            depositary, transfer agent, registrar or other designated agency
            upon such terms and conditions as the Collateral Agent may
            determine, all without liability except to account for property
            actually received by it, but the Collateral Agent shall have no duty
            to exercise any of the aforesaid rights, privileges or options, and
            the Collateral Agent shall not be responsible for any failure to do
            so or delay in so doing.

                  (ii) All rights of the Debtors to exercise the voting and
            other consensual rights which it would otherwise be entitled to
            exercise pursuant to Subsection 4.14(a)(i) and to receive the
            dividends, interest and other distributions which it would otherwise
            be authorized to receive and retain pursuant to Subsection
            4.14(a)(ii) shall be suspended until such Event of Default shall no
            longer exist, and all such rights shall, until such Event of Default
            shall no longer exist, thereupon become vested in the Collateral
            Agent which shall thereupon have the sole right, at the direction or
            with the concurrence of the Majority Benefited Parties as required
            under the Intercreditor Agreement, to exercise such voting and other
            consensual rights and to receive, hold and dispose of as Pledged
            Shares, as the case may be, such dividends, interest and other
            distributions.

                  (iii) All dividends, interest and other distributions which
            are received by the Debtors contrary to the provisions of this
            Subsection 4.14(b) shall be received in trust for the benefit of the
            Collateral Agent, shall be segregated from other funds and property
            of the Debtors and shall be forthwith paid over to the

                                       17
<PAGE>

            Collateral Agent as Collateral in the same form as so received (with
            any necessary endorsement).

                  (iv) The Debtors shall execute and deliver (or cause to be
            executed and delivered) to the Collateral Agent all such proxies and
            other instruments as the Collateral Agent may reasonably request for
            the purpose of enabling the Collateral Agent to exercise the voting
            and other rights which it is entitled to exercise pursuant to this
            Subsection 4.14(b) and to receive the dividends, interest and other
            distributions which it is entitled to receive and retain pursuant to
            this Subsection 4.14(b). The foregoing shall not in any way limit
            the Collateral Agent's power and authority granted pursuant to
            Section 5.1.

      (c) The Collateral Agent shall establish, for the benefit of the Benefited
Parties in the name of the Collateral Agent, a segregated non-interest bearing
blocked account (the "Receiving Account") under which CAC South Dakota and the
other Debtors shall have no withdrawal or other rights (whether or not a Default
or Event of Default has occurred and is continuing), such account being subject
to the security interest and lien established by this Agreement. All dividends,
distributions and other sums paid (or payable) in respect of CAC South Dakota's
partnership interest in CAC Scotland assigned, for collateral purposes, to the
Collateral Agent, for and on behalf of the Benefited Parties pursuant to the
Assignation, shall be received and held by Collateral Agent for the benefit of
the Benefited Parties, and thereafter promptly deposited by Collateral Agent to
the Receiving Account established under this clause (c). So long as no Default
or Event of Default has occurred and is continuing, the Collateral Agent shall
promptly transfer all such sums on deposit in the Receiving Account to another
account, as specified from time to time in writing by CAC South Dakota. Upon the
occurrence and during the continuance of any Default or Event of Default, all
such sums on deposit in the Receiving Account shall be retained in the Receiving
Account for disposition in accordance with this Agreement. Furthermore, CAC
South Dakota shall cause all dividends, distributions and other sums paid (or
payable) in respect of its partnership interest in CAC Scotland assigned for
collateral purposes, to the Collateral Agent, for and on behalf of the Benefited
Parties pursuant to the Assignation, to be paid directly by CAC Scotland to the
Collateral Agent in accordance with the terms of the Assignation, and shall
cause any such dividends, distributions or other sums received by any other
Person, including without limitation any Debtor, to be promptly delivered and
paid over to the Collateral Agent for disposition according to the terms hereof.

      SECTION 4.15 TRANSFERS AND OTHER LIENS; ADDITIONAL INVESTMENTS. Each
Debtor agrees that, (a) except with the written consent of the Collateral Agent,
it will not permit any Significant Domestic Subsidiary to issue to it or any of
its other Subsidiaries any shares of stock, membership interests, partnership
units, notes or other securities or instruments (including without limitation
the Pledged Shares) in addition to or in substitution for any of the Collateral,
unless, concurrently with each issuance thereof, any and all such shares of
stock, membership interests, partnership units, notes or instruments are
encumbered in favor of the Collateral Agent under this Agreement or otherwise
(it being understood and agreed that all such shares of stock, membership
interests, partnership units, notes or instruments issued to such Debtor shall,
without further action by such Debtor or Collateral Agent, be automatically
encumbered by this Agreement as Pledged Shares) and (b) it will promptly upon
the written request of Collateral Agent following the issuance thereof (and in
any event within three Business Days following

                                       18
<PAGE>

such request) deliver to the Collateral Agent (i) an amendment, duly executed by
the applicable Debtor, in substantially the form of Exhibit A hereto (an
"Amendment"), in respect of such shares of stock, membership interests,
partnership units, notes or instruments issued to such Debtor or (ii) a new
stock pledge, duly executed by the applicable Subsidiary, in substantially the
form of this Agreement (a "New Pledge"), in respect of such shares of stock,
membership interests, partnership units, notes or instruments issued to any
Subsidiary granting to Collateral Agent, for the benefit of the Benefited
Parties, a first priority security interest, pledge and lien thereon, together
in each case with all certificates, notes or other instruments representing or
evidencing the same, and the acknowledgment of any issuer necessary or
appropriate to perfect such pledge, security interest and lien on any membership
or similar ownership interest. Each Debtor hereby (x) authorizes the Collateral
Agent to attach each Amendment to this Agreement, (y) agrees that all such
shares of stock, membership interests, partnership units, notes or instruments
listed in any Amendment delivered to the Collateral Agent shall for all purposes
hereunder constitute Pledged Shares, and (z) is deemed to have made, upon the
delivery of each such Amendment, the representations and warranties contained in
Sections 3.1, 3.2, 3.4, 3.5 and 3.7 of this Agreement with respect to the
Collateral covered thereby.

      SECTION 4.16 POSSESSION; REASONABLE CARE. Regardless of whether an Event
of Default has occurred or is continuing, the Collateral Agent shall have the
right to hold in its possession all Pledged Shares pledged, assigned or
transferred hereunder and from time to time constituting a portion of the
Collateral. The Collateral Agent may appoint one or more agents (which in no
case shall be a Debtor or an affiliate of a Debtor) to hold physical custody,
for the account of the Collateral Agent, of any or all of the Collateral. The
Collateral Agent shall be deemed to have exercised reasonable care in the
custody and preservation of the Collateral in its possession if the Collateral
is accorded treatment substantially equal to that which the Collateral Agent
accords its own property, it being understood that the Collateral Agent shall
not have any responsibility for (a) ascertaining or taking action with respect
to calls, conversions, exchanges, maturities, tenders, distribution or other
matters relative to any Collateral, whether or not the Collateral Agent has or
is deemed to have knowledge of such matters, or (b) taking any necessary steps
to preserve rights against any parties with respect to any Collateral, except,
subject to the terms hereof, upon the written instructions of the Majority
Benefited Parties. Following the occurrence and continuance (beyond any
applicable grace or cure period) of an Event of Default, the Collateral Agent
shall be entitled to take possession of the Collateral in accordance with the
UCC.

      SECTION 4.17 FUTURE SIGNIFICANT DOMESTIC SUBSIDIARIES. (a) With respect to
each Person which becomes a Significant Domestic Subsidiary subsequent to the
date hereof, on the date such Person is created, acquired or otherwise becomes a
Significant Domestic Subsidiary (whichever first occurs), the Company shall
cause such Subsidiary to execute and deliver, to the Collateral Agent a joinder
agreement, substantially in the form of Exhibit B hereto, by which such
Subsidiary shall become obligated as Debtor hereunder, as fully as though an
original signatory hereto.

      (b) Furthermore, promptly following the effective date of each acquisition
or creation of a Significant Domestic Subsidiary, the Company from time to time
shall revise Schedule D hereto and deliver a copy thereto to the Collateral
Agent, adding to Schedule D the name of each such Significant Domestic
Subsidiary so acquired or created (and supplying the other

                                       19
<PAGE>

information required on such schedule including ownership information), and upon
such revision the Company and/or the applicable Debtor shall be deemed to have
pledged 100% of the capital stock, partnership interests, membership interests
or other ownership interests (to the extent owned by the Company and/or such
Debtor) of each such Significant Domestic Subsidiary so acquired or created to
Collateral Agent, for and on behalf of Benefited Parties.

      SECTION 4.18 PRESERVATION OF INTELLECTUAL PROPERTY.

      (a) Each Debtor agrees to take all necessary steps, including, without
limitation, in the United States Copyright Office or the United States Patent
and Trademark Office or in any court, to defend, enforce, and preserve the
validity and ownership of the intellectual property identified on Schedule F
hereto and all such additional registered intellectual property as may be
acquired or held by each Debtor, except in each case in which the Debtors have
determined, using their commercially reasonable judgment, that any of the
foregoing is not of material economic value to them.

      (b) Each Debtor shall not abandon any registered intellectual property
registrations or applications therefor without the written consent of the
Collateral Agent, unless the Debtors shall have previously determined, using
their commercially reasonable judgment, that such use or pursuit or maintenance
of such intellectual property registrations or applications, is not of material
economic value to them.

      (c) In the event that a Debtor becomes aware that any item of the
intellectual property which such Debtor has determined, using its commercially
reasonable judgment, to be material to its business (either singly or when taken
as a whole together with other such intellectual property rights then being
infringed against or misappropriated) is infringed or misappropriated by a third
party, such Debtor shall notify the Collateral Agent promptly and in writing, in
reasonable detail, and shall take such actions as such Debtor or the Collateral
Agent deems necessary or appropriate (using its reasonable commercial judgment)
including, without limitation, suing for infringement or misappropriation and
for an injunction against such infringement or misappropriation. Any expense
incurred in connection with such activities shall be borne by the Debtors. Each
Debtor will advise the Collateral Agent promptly and in writing and in
reasonable detail, of any adverse determination or the institution of any
proceeding (including, without limitation, the institution of any proceeding in
the United States Patent and Trademark Office, the United States Copyright
Office or any court) regarding any material item of the intellectual property
collateral.

      (d) Promptly following application for registration, registration or
acquisition by a Debtor of any trademark, patent or copyright, such Debtor shall
provide notice to the Collateral Agent of such application, registration or
acquisition so that the Collateral Agent may make such filings as it may deem
necessary or desirable to perfect its interest in such intellectual property,
and such Debtor shall execute an amendment to the Security Agreement in
substantially the form of Exhibit C in order to for the Collateral Agent to
perfect its interests in any intellectual property held by such Debtor.

                                       20
<PAGE>

                                   ARTICLE V
                         RIGHTS OF THE COLLATERAL AGENT

      SECTION 5.1 POWER OF ATTORNEY. Each Debtor hereby irrevocably constitutes
and appoints the Collateral Agent and any officer or agent thereof, with full
power of substitution, as its true and lawful attorney-in-fact with full
irrevocable power and authority in the name of such Debtor or in its own name,
to take, after the occurrence and during the continuance of an Event of Default,
any and all actions, and to execute any and all documents and instruments which
the Collateral Agent at any time and from time to time deems necessary or
desirable, to accomplish the purposes of this Agreement and, without limiting
the generality of the foregoing, each Debtor hereby gives the Collateral Agent
the power and right on behalf of such Debtor and in its own name to do any of
the following after the occurrence and during the continuance of an Event of
Default, without notice to or the consent of the Debtors:

                  (i) to demand, sue for, collect or receive, in the name of the
            Debtors or in its own name, any money or property at any time
            payable or receivable on account of or in exchange for any of the
            Collateral and, in connection therewith, endorse checks, notes,
            drafts, acceptances, money orders, documents of title or any other
            instruments for the payment of money under the Collateral or any
            policy of insurance;

                  (ii) to pay or discharge taxes, Liens or other encumbrances
            levied or placed on or threatened against the Collateral;

                  (iii) (A) to direct account debtors, Dealers, any obligors
            under Installment Contracts or Leases, as applicable, and any other
            parties liable for any payment under any of the Collateral to make
            payment of any and all monies due and to become due thereunder
            directly to the Collateral Agent or as the Collateral Agent shall
            direct; (B) to receive payment of and receipt for any and all
            monies, claims and other amounts due and to become due at any time
            in respect of or arising out of any Collateral; (c) to sign and
            endorse any invoices, freight or express bills, bills of lading,
            storage or warehouse receipts, drafts against debtors, assignments,
            proxies, stock powers, verifications and notices in connection with
            accounts and other documents relating to the Collateral; (D) to
            commence and prosecute any suit, action or proceeding at law or in
            equity in any court of competent jurisdiction to collect the
            Collateral or any part thereof and to enforce any other right in
            respect of any Collateral; (E) to defend any suit, action or
            proceeding brought against the Debtors with respect to any
            Collateral; (F) to settle, compromise or adjust any suit, action or
            proceeding described above and, in connection therewith, to give
            such discharges or releases as the Collateral Agent may deem
            appropriate; (G) to exchange any of the Collateral for other
            property upon any merger, consolidation, reorganization,
            recapitalization or other readjustment of the issuer thereof and, in
            connection therewith, deposit any of the Collateral with any
            committee, depositary, transfer agent, registrar or other designated
            agency upon such terms as the Collateral Agent may determine; (H) to
            add or release any guarantor, indorser, surety or other party to any
            of the Collateral; (i) to renew, extend or otherwise change the
            terms and conditions of any of the Collateral; (J) to make, settle,
            compromise or adjust any claim under or pertaining to any of the
            Collateral (including claims under any policy of insurance); and (K)
            to sell, transfer, pledge, convey, make any agreement with

                                       21
<PAGE>

            respect to, or otherwise deal with, any of the Collateral as fully
            and completely as though the Collateral Agent were the absolute
            owner thereof for all purposes, and to do, at the Collateral Agent's
            option and the Debtors' sole expense, at any time, or from time to
            time, all acts and things which the Collateral Agent deems necessary
            to protect, preserve, maintain, or realize upon the Collateral and
            the Collateral Agent's security interest therein.

      This power of attorney is a power coupled with an interest and shall be
irrevocable. The Collateral Agent shall be under no duty to exercise or withhold
the exercise of any of the rights, powers, privileges and options expressly or
implicitly granted to the Collateral Agent in this Agreement, and shall not be
liable for any failure to do so or any delay in doing so. This power of attorney
is conferred on the Collateral Agent solely to protect, preserve, maintain and
realize upon its security interest in the Collateral. The Collateral Agent shall
not be responsible for any decline in the value of the Collateral and shall not
be required to take any steps to preserve rights against prior parties or to
protect, preserve or maintain any Lien given to secure the Collateral.

      SECTION 5.2 SETOFF. In addition to and not in limitation of any rights of
any Benefited Party under applicable law, the Collateral Agent and each
Benefited Party shall, upon acceleration of any Benefited Obligation owing to
such party under the Credit Agreement or the Future Debt Documents, as the case
may be, or when and to the extent any such Benefited Obligation shall otherwise
be due and payable, and without notice or demand of any kind, have the right to
appropriate and apply to the payment of the Benefited Obligations owing to it
(whether or not then due) any and all balances, credits, deposits, accounts or
moneys of the Debtors then or thereafter on deposit with such Benefited Party;
provided, however, that any such amount so applied by any Benefited Party on any
of the Benefited Obligations owing to it shall be subject to the provisions of
Sections 5 and 10 of the Intercreditor Agreement.

      SECTION 5.3 ASSIGNMENT BY THE COLLATERAL AGENT. The Collateral Agent may
at any time assign or otherwise transfer all or any portion of its rights and
obligations as Collateral Agent under this Agreement and the other Security
Documents (including, without limitation, the Benefited Obligations) to any
other Person, to the extent permitted by, and upon the conditions contained in,
the Intercreditor Agreement and the other Financing Agreements, as applicable,
and such Person shall thereupon become vested with all the benefits and
obligations thereof granted to the Collateral Agent herein or otherwise.

      SECTION 5.4 PERFORMANCE BY THE COLLATERAL AGENT. If any Debtor shall fail
to perform any covenant or agreement contained in this Agreement, the Collateral
Agent may perform or attempt to perform such covenant or agreement on behalf of
such Debtor, in which case Collateral Agent shall exercise good faith and make
diligent efforts to give Debtors prompt prior written notice of such performance
or attempted performance. In such event, the Debtors shall, at the request of
the Collateral Agent, promptly pay any reasonable amount expended by the
Collateral Agent in connection with such performance or attempted performance to
the Collateral Agent, together with interest thereon at the interest rate set
forth in the Credit Agreement, from and including the date of such expenditure
to but excluding the date such expenditure is paid in full. Notwithstanding the
foregoing, it is expressly agreed that the Collateral Agent shall not have any
liability or responsibility for the performance of any obligation of the Debtors
under this Agreement.

                                       22
<PAGE>

      SECTION 5.5 RESTRICTIONS UNDER DEALER AGREEMENTS; NON-PETITION COVENANT.
In exercising the rights and remedies set forth in this Agreement, the
Collateral Agent shall take no action with regard to any Dealer which is
expressly prohibited by the related Dealer Agreement.

      SECTION 5.6 CERTAIN COSTS AND EXPENSES. The Debtors shall pay or reimburse
the Collateral Agent within five (5) Business Days after demand for all
reasonable costs and expenses (including reasonable attorney's and paralegal
fees and expenses supported by an itemized billing) incurred by it in connection
with the enforcement, attempted enforcement, or preservation of any rights or
remedies under this Agreement or any other Security Document during the
existence of an Event of Default or after acceleration of any of the Benefited
Obligations (including in connection with any "workout" or restructuring
regarding the Benefited Obligations, and including in any insolvency proceeding
or appellate proceeding); provided, however, that the Debtors shall only be
required to pay or reimburse the Collateral Agent in connection with the
enforcement, attempted enforcement, or preservation of any rights or remedies
under this Agreement or any other Security Document for the fees and expenses of
one law firm in each jurisdiction governing the establishment, perfection or
priority of any security interest or lien established hereby, or governing any
dispute, claim or other matter arising hereunder, at any given time, engaged on
behalf of the Collateral Agent. The agreements in this Section 5.6 shall survive
the payment in full of the Benefited Obligations. Notwithstanding the foregoing,
the reimbursement of any fees and expenses incurred by the Benefited Parties
shall be governed by the terms and conditions of the applicable Financing
Agreements.

      SECTION 5.7 INDEMNIFICATION. The Debtors shall indemnify, defend and hold
the Collateral Agent and each Benefited Party and each of their respective
officers, directors, employees, counsel, agents and attorneys-in-fact (each, an
"Indemnified Person") harmless from and against any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
charges, expenses and disbursements (including reasonable attorneys' and
paralegals' fees and expenses supported by an itemized billing) of any kind or
nature whatsoever which may at any time (including at any time following
repayment of the Benefited Obligations and the termination, resignation or
replacement of the Collateral Agent or replacement of any Benefited Party) be
imposed on, incurred by or asserted against any such Indemnified Person in any
way relating to or arising out of this Agreement or any other Security Document
or any document contemplated by or referred to herein or therein, or the
transactions contemplated hereby, or any action taken or omitted by any such
Indemnified Person under or in connection with any of the foregoing, including
with respect to any investigation, litigation or proceeding (including any
"Bankruptcy Proceeding" (as defined in the Intercreditor Agreement) or appellate
proceeding) related to or arising out of this Agreement or the Benefited
Obligations or the use of the proceeds thereof, whether or not any Indemnified
Person is a party thereto (all the foregoing, collectively, the "Indemnified
Liabilities"); provided, that the Debtors shall have no obligation under this
Section 5.7 to any Indemnified Person (a) with respect to Indemnified
Liabilities to the extent resulting from the gross negligence or willful
misconduct of such Indemnified Person or (b) if, in the case of an action solely
among the Collateral Agent and/or the Benefited Parties (or any of

                                       23
<PAGE>

them), neither any Debtor nor any of its Affiliates or employees or agents is
(or has been) finally determined, in a court of competent jurisdiction, to have
engaged in any wrongful conduct or in any breach of this Agreement or any of the
Financing Agreements or (c) if, in the case of an action solely as between or
among the Collateral Agent and/or the Benefited Parties (or any of them) on the
one hand and a Debtor, on the other hand, (i) such Debtor has obtained a final,
non-appealable judgment from a court of competent jurisdiction that neither it
nor any of its Affiliates, employees or agents has engaged in any wrongful
conduct or in any breach of this Agreement or any of the other Financing
Agreements or (ii) such Debtor by non-appealable judgment is the prevailing
party. The agreements in this Section 5.7 shall survive payment of all other
Benefited Obligations.

                                   ARTICLE VI
                                     DEFAULT

      SECTION 6.1 RIGHTS AND REMEDIES. If an Event of Default shall have
occurred and be continuing, the Collateral Agent shall have the following rights
and remedies, subject to the direction and/or consent of the Majority Benefited
Parties as required under the Intercreditor Agreement:

                  (i) In addition to all other rights and remedies granted to
            the Collateral Agent in this Agreement, the Intercreditor Agreement
            or in any other Financing Agreement or by applicable law, the
            Collateral Agent shall have all of the rights and remedies of a
            secured party under the UCC (whether or not the UCC applies to the
            affected Collateral) and the Collateral Agent may also, without
            notice except as specified below or in the Intercreditor Agreement,
            sell the Collateral or any part thereof in one or more parcels at
            public or private sale, at any exchange, broker's board or at any of
            the Collateral Agent's offices or elsewhere, for cash, on credit or
            for future delivery, and upon such other terms as the Collateral
            Agent may, in its reasonable discretion, deem commercially
            reasonable or otherwise as may be permitted by law. Without limiting
            the generality of the foregoing, the Collateral Agent may (A)
            without demand or notice to the Debtors (except as required under
            the Financing Agreements or applicable law), collect, receive or
            take possession of the Collateral or any part thereof, and for that
            purpose the Collateral Agent (and/or its agents, servicers or other
            independent contractors) may enter upon any premises on which the
            Collateral is located and remove the Collateral therefrom or render
            it inoperable, and/or (B) sell, lease or otherwise dispose of the
            Collateral, or any part thereof, in one or more parcels at public or
            private sale or sales, at the Collateral Agent's offices or
            elsewhere, for cash, on credit or for future delivery, and upon such
            other terms as the Collateral Agent may, in its reasonable
            discretion, deem commercially reasonable or otherwise as may be
            permitted by law. The Collateral Agent and, subject to the terms of
            the Intercreditor Agreement, each of the Benefited Parties shall
            have the right at any public sale or sales, and, to the extent
            permitted by applicable law, at any private sale or sales, to bid
            (which bid may be, in whole or in part, in the form of cancellation
            of indebtedness) and become a purchaser of the Collateral or any
            part thereof free of any right of redemption on the part of the
            Debtors, which right of redemption is hereby expressly waived and
            released by the Debtors to the extent permitted by applicable law.
            Upon the request of the Collateral Agent, the applicable Debtor
            shall assemble the Collateral and make it available to the
            Collateral Agent at any place designated by the Collateral Agent
            that is reasonably convenient to such Debtor and the Collateral
            Agent. The Debtors

                                       24
<PAGE>

            agree that the Collateral Agent shall not be obligated to give more
            than ten (10) days prior written notice of the time and place of any
            public sale or of the time after which any private sale may take
            place and that such notice shall constitute reasonable notice of
            such matters. The Collateral Agent shall not be obligated to make
            any sale of Collateral if, in the exercise of its reasonable
            discretion, it shall determine not to do so, regardless of the fact
            that notice of sale of Collateral may have been given. The
            Collateral Agent may, without notice or publication (except as
            required by applicable law), adjourn any public or private sale or
            cause the same to be adjourned from time to time by announcement at
            the time and place fixed for sale, and such sale may, without
            further notice, be made at the time and place to which the same was
            so adjourned. The Debtors shall be liable for all reasonable
            expenses of retaking, holding, preparing for sale or the like, and
            all reasonable attorneys' fees, legal expenses and other costs and
            expenses incurred by the Collateral Agent in connection with the
            collection of the Benefited Obligations and the enforcement of the
            Collateral Agent's rights under this Agreement and the Intercreditor
            Agreement. The Debtors shall, to the extent permitted by applicable
            law, remain liable for any deficiency if the Proceeds of any such
            sale or other disposition of the Collateral (conducted in conformity
            with this clause (i) and applicable law) applied to the Benefited
            Obligations are insufficient to pay the Benefited obligations in
            full. The Collateral Agent shall apply the proceeds from the sale of
            the Collateral hereunder against the Benefited Obligations in such
            order and manner as is provided in the Intercreditor Agreement.

                  (ii) The Collateral Agent may cause any or all of the
            Collateral held by it to be transferred into the name of the
            Collateral Agent or the name or names of the Collateral Agent's
            nominee or nominees.

                  (iii) The Collateral Agent may exercise any and all rights and
            remedies of the Debtors under or in respect of the Collateral,
            including, without limitation, any and all rights of the Debtors to
            demand or otherwise require payment of any amount under, or
            performance of any provision of any of the Collateral and any and
            all voting rights and corporate powers in respect of the Collateral.

                  (iv) On any sale of the Collateral, the Collateral Agent is
            hereby authorized to comply with any limitation or restriction with
            which compliance is necessary (based on a reasoned opinion of the
            Collateral Agent's counsel) in order to avoid any violation of
            applicable law or in order to obtain any required approval of the
            purchaser or purchasers by any applicable Governmental Authority.

                  (v) For purposes of enabling the Collateral Agent to exercise
            its rights and remedies under this Section 6.1 and enabling the
            Collateral Agent and its successors and assigns to enjoy the full
            benefits of the Collateral, each Debtor hereby grants to the
            Collateral Agent an irrevocable, nonexclusive license (exercisable
            without payment of royalty or other compensation to such Debtor) to
            use, assign, license or sublicense any of the Computer Records or
            Software

                                       25
<PAGE>

            (including in such license reasonable access to all media in which
            any of the licensed items may be recorded or stored and all computer
            programs used for the completion or printout thereof), exercisable
            upon the occurrence and during the continuance of an Event of
            Default (and thereafter if Collateral Agent succeeds to any of the
            Collateral pursuant to an enforcement proceeding or voluntary
            arrangement such Debtor), except as may be prohibited by any
            licensing agreement relating to such Computer Records or Software.
            This license shall also inure to the benefit of all successors,
            assigns, transferees of and purchasers from the Collateral Agent.

                  (vi) The following shall be the basis for any finder of fact's
            determination of the value of any Collateral which is the subject
            matter of a disposition giving rise to a calculation of any surplus
            or deficiency under Section 9.615 (f) of the Uniform Commercial Code
            (as in effect on or after July 1, 2001): (a) the Collateral which is
            the subject matter of the disposition shall be valued in an "as is"
            condition as of the date of the disposition, without any assumption
            or expectation that such Collateral will be repaired or improved in
            any manner; (b) the valuation shall be based upon an assumption that
            the transferee of such Collateral desires a resale of the Collateral
            for cash promptly (but no later than 30 days) following the
            disposition; (c) all reasonable closing costs customarily borne by
            the seller in commercial sales transactions relating to property
            similar to such Collateral shall be deducted including, without
            limitation, brokerage commissions, tax prorations, attorneys' fees,
            whether inside or outside counsel is used, and marketing costs; (d)
            the value of the Collateral which is the subject matter of the
            disposition shall be further discounted to account for any estimated
            holding costs associated with maintaining such Collateral pending
            sale (to the extent not accounted for in (c) above), and other
            maintenance, operational and ownership expenses; and (e) any expert
            opinion testimony given or considered in connection with a
            determination of the value of such Collateral must be given by
            persons having at least 5 years experience in appraising property
            similar to the Collateral and who have conducted and prepared a
            complete written appraisal of such Collateral taking into
            consideration the factors set forth above. The "value" of any such
            Collateral shall be a factor in determining the amount of proceeds
            which would have been realized in a disposition to a transferee
            other than a secured party, a person related to a secured party or a
            secondary obligor under Section 9-615(f).

      SECTION 6.2 PRIVATE SALES.

      (a) In view of the fact that applicable securities laws may impose certain
restrictions on the method by which a sale of the Pledged Shares may be effected
after an Event of Default, each Debtor agrees that upon the occurrence and
during the continuance of an Event of Default, Collateral Agent may from time to
time attempt to sell all or any part of the Pledged Shares by a private sale in
the nature of a private placement, restricting the bidders and prospective
purchasers to those who will represent and agree that they are "accredited
investors" within the meaning of Regulation D promulgated pursuant to the
Securities Act of 1933, as amended (the "Securities Act"), and are purchasing
for investment only and not for distribution. In so doing,

                                       26
<PAGE>

Collateral Agent may solicit offers for the Pledged Shares, or any part thereof,
from a limited number of investors who might be interested in purchasing the
Pledged Shares. Without limiting the methods or manner of disposition which
could be determined to be commercially reasonable, if Collateral Agent hires a
firm of regional or national reputation that is engaged in the business of
rendering investment banking and brokerage services to solicit such offers and
facilitate the sale of the Pledged Shares, then Collateral Agent's acceptance of
the highest offer (including its own offer, or the offer of any of the Benefited
Parties at any such sale) obtained through such efforts of such firm shall be
deemed to be a commercially reasonable method of disposition of such Pledged
Shares. The Collateral Agent shall not be under any obligation to delay a sale
of any of the Pledged Shares (to the extent applicable) for the period of time
necessary to permit the issuer of such securities to register such securities
under the laws of any jurisdiction outside the United States, under the
Securities Act or under any applicable state securities laws, even if such
issuer would agree to do so.

      (b) Each Debtor further agrees to do or cause to be done, to the extent
that such Debtor may do so under applicable law, all such other reasonable acts
and things as may be necessary to make such sales or resales of any portion or
all of the Collateral valid and binding and in compliance with any and all
applicable laws, regulations, orders, writs, injunctions, decrees or awards of
any and all courts, arbitrators or governmental instrumentalities, domestic or
foreign, having jurisdiction over any such sale or sales, all at the Debtors'
sole expense.

      SECTION 6.3 ESTABLISHMENT OF SPECIAL ACCOUNT; AND LOCK BOX. Upon the
occurrence and during the continuance of any Event of Default, there shall be
established by the Debtors with Collateral Agent, for the benefit of the
Benefited Parties in the name of the Collateral Agent, a segregated non-interest
bearing cash collateral account ("Special Account") bearing a designation
clearly indicating that the funds deposited therein are held for the benefit of
the Collateral Agent and the Benefited Parties; provided, however, that the
Special Account may be an interest-bearing account with a commercial bank
(including Comerica or any other Benefited Party which is a commercial bank) if
determined by the Collateral Agent, in its reasonable discretion, to be
practicable, invested by Collateral Agent in its sole discretion, but without
any liability for losses or the failure to achieve any particular rate of
return. Subject to the terms hereof and to the rights of Dealers under
applicable Dealer Agreement and to the rights of the applicable creditor in
respect of Permitted Securitizations, the Collateral Agent shall possess all
right, title and interest in and to all funds deposited from time to time in
such account. Furthermore, upon the occurrence and during the continuance of any
Event of Default, the Debtors agree, upon the written election of Collateral
Agent, to establish and maintain at Debtors' sole expense a United States Post
Office lock box (the "Lock Box"), to which Collateral Agent shall have exclusive
access and control. Each Debtor expressly authorizes Collateral Agent, from time
to time, to remove the contents from the Lock Box, for disposition in accordance
with this Agreement. Upon the occurrence and during the continuance of an Event
of Default, the applicable Debtor shall, upon Collateral Agent's request, notify
all account debtors, all Dealers under Dealer Agreements encumbered hereby, and
all obligors under Installment Contracts or Leases encumbered hereby that all
payments made to such Debtor (a) other than by electronic funds transfer, shall
be remitted, for the credit of such Debtor, to the Lock Box, and each Debtor
shall include a like statement on all invoices, and (b) by electronic funds
transfer, shall be remitted to the Special Account, and each Debtor shall
include a like statement on all invoices. The Debtors shall execute all
documents and authorizations as reasonably required by

                                       27
<PAGE>

the Collateral Agent to establish and maintain the Lock Box and the Special
Account. It is acknowledged by the parties hereto that any lockbox presently
maintained or subsequently established by the Debtors with Collateral Agent may
be used, subject to the terms hereof, to satisfy the requirements set forth in
the first sentence of this Section 6.3.

      SECTION 6.4 LEGENDING INSTALLMENT CONTRACTS AND LEASES ON DEFAULT. Upon
the occurrence and during the continuance of any Event of Default, the Majority
Benefited Parties may elect (the "Election"), by directing the Collateral Agent
to notify the Debtors of such election, to affix to each Installment Contract
and Lease encumbered by this Agreement or securing Dealer Loans or otherwise
related to a Dealer Agreement encumbered hereby (or, at Debtors' option, to the
file folders containing such Installment Contracts or Leases) the following
legend: "THIS AGREEMENT HAS BEEN PLEDGED TO COMERICA BANK, AS COLLATERAL AGENT
FOR THE BENEFIT OF CERTAIN BENEFITED PARTIES". The Election, once made by the
Majority Benefited Parties, as aforesaid, shall remain in effect, and Debtors
shall remain obligated to comply with such Election, notwithstanding any
subsequent waiver or cure of the applicable Event of Default giving rise to such
election, unless the Election is withdrawn by the Majority Benefited Parties.

      SECTION 6.5 DEFAULT UNDER FINANCING AGREEMENTS. It shall constitute an
Event of Default under each of the Financing Agreements if (a) any
representation or warranty made or deemed made by the Debtors herein or in any
instrument submitted pursuant hereto proves untrue in any material adverse
respect when made or deemed made, or (b) the Debtors shall breach any covenant
or other provision hereof, and such breach shall continue for a period of three
(3) consecutive days, in the case of any failure to pay any money due hereunder,
and thirty (30) consecutive days, in the case of any other breach hereunder or
(c) this Agreement shall at any time for any reason (other than in accordance
with its terms or the terms of each of the Financing Agreements or with the
consent of the requisite Benefited Parties) cease to be valid and binding and
enforceable against the Debtors, or (d) the validity, binding effect or
enforceability hereof shall be contested by any Person, or (e) the Debtors shall
deny, prior to payment of the Benefited Obligations in full or the termination
of this Agreement according to its terms, that it has any further liability
hereunder, or (f) this Agreement (other than in accordance with its terms or the
terms of each of the Financing Agreements) shall be terminated, invalidated,
revoked or set aside or in any way cease to give or provide to the Collateral
Agent and the Benefited Parties the benefits purported to be created hereby.

                                  ARTICLE VII
                                 MISCELLANEOUS

      SECTION 7.1 NO WAIVER; CUMULATIVE REMEDIES. No failure on the part of the
Collateral Agent to exercise and no delay in exercising, and no course of
dealing with respect to, any right, power or privilege under this Agreement
shall operate as a waiver thereof, nor shall any single or partial exercise of
any right, power or privilege under this Agreement preclude any other or further
exercise thereof or the exercise of any other right, power, or privilege. The
rights and remedies provided for in this Agreement are cumulative and not
exclusive of any rights and remedies provided by law.

                                       28
<PAGE>

      SECTION 7.2 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon
and inure to the benefit of the Debtors and the Collateral Agent and their
respective heirs, successors and assigns, except that no Debtor may assign any
of its rights or obligations under this Agreement without the prior written
consent of the Collateral Agent.

      SECTION 7.3 AMENDMENT; ENTIRE AGREEMENT. THIS AGREEMENT (AND THE FINANCING
AGREEMENTS REFERRED TO HEREIN) EMBODIES THE FINAL, ENTIRE AGREEMENT AMONG THE
PARTIES HERETO AND SUPERSEDES ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS,
REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING TO THE
SUBJECT MATTER HEREOF AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OF THE
PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES HERETO.
The provisions of this Agreement may be amended or waived only by an instrument
in writing signed by the parties hereto.

      SECTION 7.4 NOTICES. All notices, requests, consents, approvals, waivers
and other communications hereunder shall be in writing (including, by facsimile
transmission) and mailed, faxed or delivered to the address or facsimile number
specified for notices on signature pages hereto; or, as directed to the Debtors
or the Collateral Agent, to such other address or number as shall be designated
by such party in a written notice to the other. All such notices, requests and
communications shall, when sent by overnight delivery, or faxed, be effective
when delivered for overnight (next business day) delivery, or transmitted in
legible form by facsimile machine, respectively, or if mailed, upon the third
"Business Day" (as defined in the Credit Agreement) after the date deposited
into the U.S. mail, or if otherwise delivered, upon delivery; except that
notices to the Collateral Agent shall not be effective until actually received
by the Collateral Agent.

      SECTION 7.5 GOVERNING LAW; SUBMISSION TO JURISDICTION; SERVICE OF PROCESS.
(a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF MICHIGAN.

      (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY
OTHER SECURITY DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF MICHIGAN OR
OF THE UNITED STATES FOR THE EASTERN DISTRICT OF MICHIGAN, AND BY EXECUTION AND
DELIVERY OF THIS AGREEMENT, EACH OF THE DEBTORS AND THE COLLATERAL AGENT
CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE
JURISDICTION OF THOSE COURTS. EACH OF THE DEBTORS AND THE COLLATERAL AGENT
IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE
OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER
HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT
OF THIS AGREEMENT OR ANY SECURITY DOCUMENT.

                                       29
<PAGE>

      SECTION 7.6 HEADINGS. The headings, captions, and arrangements used in
this Agreement are for convenience only and shall not affect the interpretation
of this Agreement.

      SECTION 7.7 SURVIVAL OF REPRESENTATIONS AND WARRANTIES. All
representations and warranties made in this Agreement or in any certificate
delivered pursuant hereto shall survive the execution and delivery of this
Agreement, and no investigation by the Collateral Agent shall affect the
representations and warranties or the right of the Collateral Agent, the Lenders
or the Future Debt Holders to rely upon them.

      SECTION 7.8 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

      SECTION 7.9 WAIVER OF BOND. In the event the Collateral Agent seeks to
take possession of any or all of the Collateral by judicial process, each Debtor
hereby irrevocably waives any bonds and any surety or security relating thereto
that may be required by applicable law as an incident to such possession, and
waives any demand for possession prior to the commencement of any such suit or
action.

      SECTION 7.10 SEVERABILITY. Any provision of this Agreement which is
determined by a court of competent jurisdiction to be prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining provisions of this Agreement, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

      SECTION 7.11 CONSTRUCTION. Each Debtor and the Collateral Agent
acknowledge that each of them has had the benefit of legal counsel of its own
choice and has been afforded an opportunity to review this Agreement with its
legal counsel and that this Agreement shall be construed as if jointly drafted
by the Debtors and the Collateral Agent.

      SECTION 7.12 TERMINATION. If all of the Benefited Obligations (other than
contingent liabilities pursuant to any indemnity, including without limitation
Sections 5.6 and 5.7 hereof, for claims which have not been asserted, or which
have not yet accrued) shall have been paid and performed in full and all
commitments to extend credit or other credit accommodations under the Credit
Agreement have been terminated, the Collateral Agent shall, upon the written
request of the Debtors, execute and deliver to the Debtors a proper instrument
or instruments acknowledging the release and termination of the security
interests created by this Agreement, and shall duly assign and deliver to the
Debtors (without recourse and without any representation or warranty) such of
the Collateral as may be in the possession of the Collateral Agent and has not
previously been sold or otherwise applied pursuant to this Agreement.

      SECTION 7.13 RELEASE OF COLLATERAL. The Collateral Agent shall, upon the
written request of the applicable Debtor, execute and deliver to such Debtor a
proper instrument or instruments acknowledging the release of the security
interest and liens established hereby (a) on any Collateral (other than the
Pledged Shares) (i) which is permitted to be sold or disposed of a Debtor or any
other grantor in connection with a Permitted Securitization, or (ii) the sale or
other

                                       30
<PAGE>

disposition of which is not otherwise prohibited under the terms of any of the
other Financing Agreements (or in the event any Financing Agreement prohibits
such sale or disposition, the applicable Benefited Parties under such Financing
Agreement shall have consented to such sale or disposition in accordance with
the terms thereof) and, at the time of such proposed release, both before and
after giving effect thereto, no Default or Event of Default has occurred and is
continuing, or (b) if such release has been approved by the requisite Benefited
Parties in accordance with Section 3(g) of the Intercreditor Agreement.

      SECTION 7.14 WAIVER OF JURY TRIAL. THE DEBTORS AND THE COLLATERAL AGENT
EACH WAIVES ITS RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED
UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT, THE OTHER SECURITY
DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION,
PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY EITHER SUCH PARTY AGAINST
THE OTHER, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.
THE DEBTOR AND THE COLLATERAL AGENT EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF
ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE
FOREGOING, EACH SUCH PARTY FURTHER AGREES THAT ITS RIGHT TO A TRIAL BY JURY IS
WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER
PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR
ENFORCEABILITY OF THIS AGREEMENT OR THE OTHER SECURITY DOCUMENTS OR ANY
PROVISION HEREOF OR THEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT.

      SECTION 7.15 CONSISTENT APPLICATION. The rights and duties created by this
Agreement shall, in all cases, be interpreted consistently with, and shall be in
addition to (and not in lieu of), the rights and duties created by the Financing
Agreements. In the event that any provision of this Agreement shall be
inconsistent with any provision of any other Financing Agreements, such
provision of this Agreement shall govern.

      SECTION 7.16 AMENDMENT AND RESTATEMENT; REAFFIRMATION. This Agreement
shall be deemed to amend, restate, renew and replace, in its entirety the prior
amended and restated security agreement executed and delivered by the parties as
of June 11, 2001, which amended and restated the earlier security agreements
referred to therein (all such prior security agreements referred to herein as
the "Prior Security Agreements"). The Debtors further reaffirm their respective
obligations under the Intercreditor Agreement, to the extent and on the terms
set forth in the Acknowledgments attached thereto.

                                     * * * *

                                       31
<PAGE>

      IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement
as of the day and year first written above.

                             DEBTORS:

                             CREDIT ACCEPTANCE CORPORATION

                             By:/s/ Douglas W. Busk
                                -------------------
                             Name: Douglas W. Busk
                             Title: Treasurer
                             Address for Notices:
                             Credit Acceptance Corporation
                             25505 W. 12 Mile Road, Suite 3000
                             Southfield, Michigan 48034
                             Fax No.: 248-827-8542
                             Telephone No.: 248-353-2700
                             Attention: Doug Busk

                                  32
<PAGE>

                             AUTO FUNDING AMERICA OF NEVADA INC.
                             BUYERS VEHICLE PROTECTION PLAN, INC.
                             CAC LEASING, INC.
                             VEHICLE REMARKETING SERVICES, INC.
                             CREDIT ACCEPTANCE CORPORATION OF
                             NEVADA, INC.
                             CAC (TCI), LTD.
                             CREDIT ACCEPTANCE CORPORATION OF SOUTH DAKOTA, INC.
                             CAC REINSURANCE, LTD.

                             By:/s/ Douglas W. Busk
                                -------------------
                             Name: Douglas W. Busk
                             Title: Treasurer
                             Address for Notices:
                             c/o Credit Acceptance Corporation
                             25505 W. 12 Mile Road, Suite 3000
                             Southfield, Michigan 48034
                             Fax No.: 248-827-8542
                             Telephone No.: 248-353-2700
                             Attention: Doug Busk

                             COLLATERAL AGENT:

                             COMERICA BANK as Collateral Agent

                             By:/s/ Harve C. Light
                                ------------------
                             Name:  Harve C. Light
                             Title:VP
                             Address for Notices:
                             Metropolitan Loans D
                             One Detroit Center, 6th Floor
                             500 Woodward Avenue
                             Detroit, Michigan 48226
                             Fax No.: 313/222-5636
                             Telephone No.: 313/222-0236
                             Attention: Harve C. Light

                                       33
<PAGE>

                                   SCHEDULE A
                                       TO
                               SECURITY AGREEMENT

        Principal Place of Business, Locations of Equipment and Inventory
            (including leased locations) in the Possession of Debtors

Credit Acceptance Corporation
25505 West Twelve Mile Road
Southfield, Michigan 48034

2460 Paseo Verde Parkway, Suite 110
Henderson, NV 89074

Auto Funding America of Nevada, Inc.

         a.       25505 West Twelve Mile Road
                  Southfield, Michigan 48034

         b.       10550 W. 8 Mile Ferndale, MI 48220

Buyers Vehicle Protection Plan, Inc.
25505 West Twelve Mile Road
Southfield, Michigan 48034

CAC Leasing, Inc.
25505 West Twelve Mile Road
Southfield, Michigan 48034
Vehicle Remarketing Services, Inc.

         a.       25505 West Twelve Mile Road
                  Southfield, Michigan 48034

         b.       2460 Paseo Verde Parkway, Suite 110
                  Henderson, NV 89074

CAC Reinsurance, Ltd.
25505 West Twelve Mile Road
Southfield, Michigan 48034

CAC (TCI), Ltd.
25505 West Twelve Mile Road
Southfield, Michigan 48034

<PAGE>

Credit Acceptance Corporation of Nevada, Inc.

         a.       25505 West Twelve Mile Road
                  Southfield, Michigan 48034

         b.       2460 Paseo Verde Parkway,  Suite 110
                  Henderson, NV 89074

Credit Acceptance Corporation of South Dakota, Inc.
25505 West Twelve Mile Road
Southfield, Michigan 48304

                              2
<PAGE>
                                   SCHEDULE B
                                       TO
                               SECURITY AGREEMENT

                            Jurisdictions for Filing
                           UCC-1 Financing Statements

Credit Acceptance Corporation
Michigan
Nevada

Auto Funding America of Nevada, Inc.
Michigan
Nevada

Buyers Vehicle Protection Plan, Inc.
Michigan

CAC Leasing, Inc.
Michigan

Vehicle Remarketing Services, Inc.
Michigan
Nevada

Credit Acceptance Corporation of Nevada, Inc.
Michigan
Nevada

Credit Acceptance Corporation of South Dakota, Inc.
South Dakota

CAC Reinsurance, Ltd.
(None.)

CAC (TCI), Ltd.
(None.)

<PAGE>

                                   SCHEDULE C
                                       TO
                               SECURITY AGREEMENT

                      Primary Computer Systems and Software

      Application and Contract System is software which utilizes the HP Unix
operating system and is resident on one of the Company's HP N4000 servers in a
failover cluster configuration. It was designed by in-house personnel and TUSC,
a consulting firm hired to assist with the project.

      The Loan Servicing System is software which utilizes the HP Unix operating
system and is resident on one of the Company's HP N4000 servers in a failover
cluster configuration. It was designed by in-house personnel and TUSC.

      The Collection System is software which utilizes the HP Unix operating
system and is resident on one of the Company's HP N4000 servers in a failover
cluster configuration. It was developed and is owned by Ontario Systems
Corporation and licensed to the Company under an agreement dated November 13,
2001.

      Further information regarding these systems is contained in the following
excerpt from the Company's Form 10-K for the year ended December 31, 2004:

                          EXCERPTS FROM 2004 Form 10-K
                          CREDIT ACCEPTANCE CORPORATION

   CAPS interfaces with the Company's Application and Contract System ("ACS").
Consumer Loan information included in CAPS is automatically entered into ACS
through a download from CAPS. Additional Consumer Loan information is entered
into ACS manually. ACS provides credit scoring capability as well as the ability
to process Consumer Loan packages. ACS compares Consumer Loan data against
information provided during the approval process and allows the funding analyst
to check that all stipulations have been met prior to funding. Consumer Loan
contracts are written on a contract form provided by the Company and the
Consumer Loan transaction typically is not completed until the dealer-partner
has received approval from the Company. The assignment of the Consumer Loan from
the dealer-partner to the Company occurs after both the customer and
dealer-partner sign the contract and the original contract is received and
approved by the Company. Although the dealer-partner is named in the Consumer
Loan contract, the dealer-partner does not have legal ownership of the Consumer
Loan for more than a moment and the Company, not the dealer-partner, is listed
as lien holder on the vehicle title. The customer's payment obligation is
directly to the Company. Payments are generally made by the customer directly to
the Company. The customer's failure to pay amounts due under the Consumer Loan
will result in collection action by the Company.

                                    * * * * *

   Collectors rely on two systems to service accounts, the Collection System
("CS") and the Loan Servicing System ("LSS"). The LSS and CS are connected
through a batch interface. The present CS has been in service since June 2002.
The CS interfaces with a predictive dialer and records all

<PAGE>

activity on a Consumer Loan, including details of past phone conversations with
the customer, collection letters sent, promises to pay, broken promises,
repossession orders and collection attorney activity. The LSS maintains a record
of all transactions relating to Consumer Loans assigned after July 1990 and is
the primary source of management reporting including data utilized to:

   (i) evaluate the Company's proprietary credit scoring system;

   (ii) forecast future collections;

   (iii) establish the amount of revenue recognized by the Company; and

   (iv) analyze the profitability of the Company's program.

                                   2
<PAGE>

                                   SCHEDULE D
                                       TO
                               SECURITY AGREEMENT

                                 Pledged Shares

<TABLE>
<CAPTION>
                                                                        Pledged Shares as %
                                        Certificate   No. of Pledged   of Total Shares Issued    Total Shares Issued
Issuer                       Owner          No.           Shares          and Outstanding          and Outstanding
-----------------------   ---------     -----------   --------------   ----------------------    -------------------
<S>                       <C>           <C>           <C>              <C>                       <C>
Auto Funding America of     Company          1            1,000                 100%                    1,000
Nevada, Inc.

Buyers Vehicle              Company          1            1,000                 100%                    1,000
Protection Plan, Inc.

CAC Leasing, Inc.           Company          1            1,000                 100%                    1,000

Vehicle Remarketing         Company          1               10                 100%                       10
Services, Inc.

Credit Acceptance           Company          1            1,000                 100%                    1,000
Corporation of Nevada,
Inc.

Credit Acceptance           Company          2            4,500                  90%                    5,000
Corporation of South
Dakota, Inc.

Credit Acceptance             CAC            3              500                  10%                    5,000
Corporation of South      Reinsurance
Dakota, Inc.

CAC (TCI), Ltd.             Company        1,2            4,500                  90%                    5,000

CAC (TCI), Ltd.               CAC            3              500                  10%                    5,000
                          Reinsurance
</TABLE>

<PAGE>

                                   SCHEDULE E
                                       TO
                               SECURITY AGREEMENT

                              Trade and Other Names

Credit Acceptance Corporation

<TABLE>
<CAPTION>
STATES
<S>                    <C>
AL - ALABAMA           NONE
AK - ALASKA            NONE
AZ - ARIZONA           NONE
AR - ARKANSAS          AUTONET FINANCE.COM, CAC AUTO LEASING
CA - CALIFORNIA        LOS ANGELOS COUNTY ONLY - AUTONET FINANCE.COM, CAC AUTO LEASING
CO - COLORADO          AUTONET FINANCE.COM, CAC AUTO LEASING
CT - CONNECTICUT       TOWN OF GRANBY ONLY - AUTONET FINANCE.COM, CAC AUTO LEASING
DE - DELAWARE          NONE
DC - DIST. OF COL.     NONE
FL - FLORIDA           NONE
GA - GEORGIA           FULTON COUNTY ONLY - AUTONET FINANCE.COM
HI - HAWAII            AUTONET FINANCE.COM, CAC AUTO LEASING
ID - IDAHO             AUTONET FINANCE.COM, CAC AUTO LEASING
IL - ILLINOIS          AUTONET FINANCE.COM, CAC AUTO LEASING
IN - INDIANA           AUTONET FINANCE.COM, CAC AUTO LEASING
IA - IOWA              AUTONET FINANCE.COM, CAC AUTO LEASING
KS - KANSAS            NONE
KY - KENTUCKY          AUTONET FINANCE.COM, CAC AUTO LEASING
LA - LOUISIANA         NONE
ME - MAINE             AUTONET FINANCE.COM, CAC AUTO LEASING
MD - MARYLAND          NONE
MA - MASS.             AUTONET FINANCE.COM
MI - MICHIGAN          AUTONET FINANCE.COM, CAC AUTO LEASING
MN - MINNESOTA         AUTONET FINANCE.COM, CAC AUTO LEASING
MS - MISSISSIPPI       NONE
MO - MISSOURI          AUTONET FINANCE.COM, CAC AUTO LEASING
MT - MONTANA           NONE
NE - NEBRASKA          NONE
NV - NEVADA            NONE
NH - NEW HAMP.         AUTONET FINANCE.COM, CAC AUTO LEASING
NJ - NEW JERSEY        AUTONET FINANCE.COM, CAC AUTO LEASING
NM - NEW MEXICO        AUTONET  FINANCE COMPANY.COM, INC.
NY - NEW YORK          NONE
NC - NORTH CAR.        AUTONET FINANCE COMPANY.COM, INC., CAC LEASING, INC.CAC AUTO LELEASING, INC.
ND - NORTH DAK.        AUTONET FINANCE.COM
OH - OHIO              AUTONET FINANCE.COM, CAC AUTO LEASING
OK - OKLAHOMA          AUTONET FINANCE.COM, CAC AUTO LEASING
OR - OREGON            NONE
PA - PENN.             AUTONET FINANCE.COM, CAC AUTO LEASING, CREDIT ACCEPTANCE FINANCIAL SERVICES, INC.
RI - RHODE ISLAND      NONE
SC - SOUTH CAR.        RICHAND COUNTY ONLY - AUTONET FINANCE.COM
SD - SOUTH DAK.        NONE
</TABLE>

<PAGE>

<TABLE>
<S>                    <C>
TN-TENNESSEE           AUTONET FINANCE.COM, CAC AUTO LEASING
TX - TEXAS             AUTONET FINANCE.COM, CAC AUTO LEASING
UT - UTAH              NONE
VT - VERMONT           AUTONET FINANCE.COM, CAC AUTO LEASING
VA - VIRGINIA          CITY OF VIRGINIA BEACH ONLY -AUTONET FINANCE.COM, CAC AUTO LEASING
WA - WASHINGTON        AUTONET FINANCE.COM, CAC AUTO LEASING
WV - WEST VIR.         AUTONET FINANCE.COM, CAC AUTO LEASING
WI - WISCONSIN         NONE
WY - WYOMING           NONE
</TABLE>

Auto Funding America of Nevada, Inc.

None

Buyers Vehicle Protection Plan, Inc.

None

CAC Leasing, Inc.

None

Vehicle Remarketing Services, Inc.

Oklahoma - Vehicle Remarketing Services of Michigan, Inc.

Credit Acceptance Corporation of Nevada, Inc.

None

Credit Acceptance Corporation of South Dakota, Inc.

None

CAC Reinsurance, Ltd.

None

CAC (TCI), Ltd.

None

                                    2
<PAGE>

                                   SCHEDULE F
                                       TO
                               SECURITY AGREEMENT

                               COPYRIGHT SCHEDULE

                          CREDIT ACCEPTANCE CORPORATION

<TABLE>
<CAPTION>
                                     COPYRIGHT                                        REG. NO.
------------------------------------------------------------------------             ---------
<S>                                                                                  <C>
CAC program review: 18 minutes that can change the profitability of your
 dealership : ser. 100                                                               TX3449287
CAC program review: 18 minutes that can change the profitability of your
dealership : ser. 200                                                                TX3449289
CAC Sales and management video seminar                                               TX3377499
CAC sales and management video seminar                                               TX3395660
CAC Sales and management video seminar : owner's manual                              TX3395659
Century Club stock option plan for dealers                                           TX3724334
Century Club stock option plan for dealers                                           TX3770159
Credit Acceptance Corporation dealership procedures                                  TX3467195
Credit Acceptance Corporation dealership procedures                                  TX3572818
Credit Acceptance Corporation management conference                                  TX3305783
Credit Acceptance Corporation management conference                                  TX3439695
Credit Acceptance Corporation management conference manual. By Credit Acceptance
 Corporation                                                                         TX4348146
Credit Acceptance Corporation servicing agreement instructions                       TX3436544
Credit Acceptance Corporation: servicing agreement instructions                      TX3577877
Credit acceptance corporation's 100% plus plan                                       TX4160147
Credit Acceptance corporation's value advance program (VAP)                          TX4160146
Don Foss/Credit Acceptance Corporation sales training tapes                          PA565492
Don Foss Credit Acceptance Corporation seminar                                       TX3349797
Don Foss Credit Acceptance Corporation seminar                                       TX3349798
Don Foss Credit Acceptance Corporation seminar; sales training manual.  By Credit
 Acceptance Corporation                                                              TX4379522
Get started video-easy steps to successful CAC selling                               TX3449288
Get started video-easy steps to successful CAC selling : ser. 200                    TX3449286
Giving car dealers new avenues for profits : brochure series 100                     TX3432531
Giving car dealers new avenues for profits, brochure series 100. By Credit
 Acceptance Corporation                                                              TX4348147
Giving car dealers new avenues for profits : brochure series 200 and contents        TX3431952
Giving car dealers new avenues for profits; brochure series 200 and contents.  By
 Credit Acceptance Corporation                                                       TX4182062
No-risk financing for high-risk buyers                                               TX3432894
No-risk financing for high-risk buyers brochure. By Credit Acceptance Corporation    TX4379523
The advantages and disadvantages of "buy here, pay here"/by                          TX3432530
</TABLE>

<PAGE>

<TABLE>
<S>                                                                                  <C>
Richard Vanderport
The CAC sales and management video training seminar                                  TX3360449
</TABLE>

                               TRADEMARK SCHEDULE

                          CREDIT ACCEPTANCE CORPORATION

<TABLE>
<CAPTION>
                           MARK                                                   SERIAL/REGIS. NO.
-----------------------------------------                                       -------------------
<S>                                                                             <C>
ASK OTTO                                                                         2,699,904
CAC CREDIT ACCEPTANCE CORPORATION                                                1,576,794
CREDIT ACCEPTANCE WE CHANGE LIVES!                                               2,644,387
MISCELLANEOUS DESIGN (checkmark in a box)                                        2,657,196
PROFIT PROTECTOR                                                                 2,451,702
WE CHANGE LIVES                                                                  2,660,738
OTTO (and Design)                                                                2,887,186
CAPS CREDIT APPROVAL PROCESS                                                     78/488984 (app. no.)
WE CHANGE LIVES! (European Trademark)                                            002455137
</TABLE>

                                 PATENT SCHEDULE

                          CREDIT ACCEPTANCE CORPORATION

<TABLE>
<CAPTION>
                          PATENT                             APPLICATION NO.
--------------------------------------------------------     --------------
<S>                                                          <C>
System and Method for Providing Financing (Patent)             10/037,055

Vehicle Leasing and Consumer Credit Rehabilitation System
and Method (AutoNet Patent)                                    20010034700
</TABLE>

                                       2
<PAGE>

                                    EXHIBIT A
                                       TO
                               SECURITY AGREEMENT

                                FORM OF AMENDMENT

      This Amendment, dated _____, 20__, is delivered pursuant to Section 4.15
of the Security Agreement referred to below. The undersigned hereby agrees that
this Amendment may be attached to the Second Amended and Restated Security
Agreement dated as of February 7, 2006, between the undersigned and Comerica
Bank, as the Collateral Agent for the benefit of the Banks and the Future Debt
Holders referred to therein (the "Security Agreement"), and that the shares of
stock, membership interests, partnership units, notes or other instruments
listed on Schedule 1 annexed hereto shall be and become part of the Collateral
referred to in the Security Agreement and shall secure payment and performance
of all Benefited Obligations as provided in the Security Agreement.

   Capitalized terms used herein but not defined herein shall have the meanings
therefor provided in the Security Agreement.

                            CREDIT ACCEPTANCE CORPORATION

                            By:________________________________________________

                            Name:______________________________________________

                            Title:_____________________________________________

                            AUTO FUNDING AMERICA OF NEVADA INC.
                            BUYERS VEHICLE PROTECTION PLAN, INC.
                            CAC LEASING, INC.
                            VEHICLE REMARKETING SERVICES, INC.
                            CREDIT ACCEPTANCE CORPORATION OF NEVADA, INC.
                            CAC (TCI), LTD.
                            CREDIT ACCEPTANCE CORPORATION OF SOUTH DAKOTA, INC.
                            CAC REINSURANCE, LTD.

                            By:________________________________________________

                            Name:______________________________________________

                            Title:_____________________________________________
<PAGE>

                            COMERICA BANK, as Collateral Agent

                            By:________________________________________________

                            Name:______________________________________________

                            Title:_____________________________________________

                                       2
<PAGE>

                                    EXHIBIT B
                                       TO
                               SECURITY AGREEMENT

                                JOINDER AGREEMENT

      THIS JOINDER AGREEMENT is dated as of _____, by the undersigned
("New Debtor").

      WHEREAS, pursuant to Section 4.17 of that certain Second Amended and
Restated Security Agreement dated as of February 7, 2006 as amended or otherwise
modified from time to time, the "Credit Agreement") executed and delivered by
the Debtors signatory thereto, in favor of Comerica Bank, as Collateral Agent
for the benefit of the Banks, and the Future Debt Holders referred to therein
(the "Security Agreement"), the New Debtor must execute and deliver a Joinder
Agreement so as to become obligated under the Security Agreement.

      NOW THEREFORE, as a further inducement to the Banks to continue to provide
Credit accommodations to the Company, New Debtor hereby covenants and agrees as
follows:

      1.    All capitalized terms used herein shall have the meanings assigned
            to them in the Credit Agreement unless expressly defined to the
            contrary.

      2.    New Debtor hereby enters into this Joinder Agreement in order to
            comply with Section 4.17 of the Security Agreement and does so in
            consideration of the credit accommodations made or to be made by the
            Banks and any Future Debt Holders.

      3.    New Debtor shall be considered, and deemed to be, for all purposes
            of the Security Agreement, a Debtor under the Security Agreement as
            fully as though New Debtor had executed and delivered the Security
            Agreement at the time originally executed and delivered by the
            existing debtors, and hereby ratifies and confirms its obligations
            under the Security Agreement, all in accordance with the terms
            thereof.

      4.    No Default or Event of Default (each such term being defined in the
            Intercreditor Agreement) has occurred and is continuing.

      5.    This Joinder Agreement shall be governed by the laws of the State of
            Michigan and shall be binding upon New Debtor and its successors and
            assigns.

<PAGE>

         IN WITNESS WHEREOF, the undersigned New Debtor has executed and
delivered this Joinder Agreement as of the day and year first above written.

                               [NEW DEBTOR]

                               By:__________________________________________

                               Its:_________________________________________

                               Address for notices:
                               _____________________________________________
                               _____________________________________________
                               _____________________________________________

                               Filing Locations:
                               _____________________________________________
                               _____________________________________________
                               _____________________________________________

                               Tradenames:
                               _____________________________________________
                               _____________________________________________
                               _____________________________________________

                                       2
<PAGE>

                                    EXHIBIT C

                                FORM OF AMENDMENT

      This Amendment, dated ________, 20__, is delivered pursuant to
Section 4.18(d) of the Security Agreement referred to below. The undersigned
hereby agrees that this Amendment may be attached to the Second Amended and
Restated Security Agreement dated as of February 7, 2006, between the
undersigned and Comerica Bank, as the Collateral Agent, as the same may be
amended, restated or otherwise modified from time to time (the "Security
Agreement"), and that the intellectual property listed on Schedule F annexed
hereto shall be and become part of the Collateral referred to in the Security
Agreement and shall secure payment and performance of all Indebtedness as
provided in the Security Agreement.

      Capitalized terms used herein but not defined herein shall have the
meanings therefor provided in the Security Agreement.

                               [DEBTORS]

                               By:____________________________________________

                               Name:__________________________________________

                               Title:_________________________________________

                               COMERICA BANK, as Collateral Agent

                               By:____________________________________________

                               Name:__________________________________________

                               Title:_________________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]